MIRA INFORM REPORT

 

 

Report Date :

17.11.2008

 

IDENTIFICATION DETAILS

 

Name :

STERLINK (VERNAL GRACE) PTE. LTD.

 

 

Registered Office :

16 Raffles Quay Hong Leong Building #41-08

 

 

Country :

Singapore

 

 

Date of Incorporation :

01.07.2007       

 

 

Com. Reg. No.:

200711785R

 

 

Legal Form :

Pte Ltd

 

 

Line of Business :

Worlwide Shipping

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct 

 

 

Litigation :

Clear

 

 

Subject Company

 

STERLINK (VERNAL GRACE) PTE. LTD.

 

 

Line Of Business  

 

WORLWIDE SHIPPING

 

 

Parent Company  

 

-

 

Financial Elements

 

Sales                           

Networth          

Paid-Up Capital                                        : S$1,000,000

Net result       

Net Margin(%)    

Return on Equity(%)-

Leverage Ratio    

 

 

COMPANY IDENTIFICATION

 

Subject Company :

STERLINK (VERNAL GRACE) PTE. LTD.

Business Address:

16 RAFFLES QUAY HONG LEONG BUILDING #41-08

Town:

SINGAPORE

Postcode:

0485581

Country:

Singapore

Telephone:

6372 3820

Fax:

6225 0029

ROC Number:

200711785R

Easy Number company:

00005245583944

 

SUMMARY

 

Legal Form:

Pte Ltd

Date Inc.:

01/07/2007        

Summary year :

 

All amounts in this report are in :

SGD

Sales:

 

Capital:

 

Paid-Up Capital:

1,000,000

Net result :

 

Share value:

 

 
 
 
BASED ON ACRA'S RECORD
                               
                                              NO OF SHARES   CURRENCY      AMOUNT              
ISSUED ORDINARY                1,000,000                SGD                        1,000,000.00                      
PAID-UP ORDINARY               -                              SGD                        1,000,000.00
 
 

AUDITOR 

 
QUEK & CO.

 

 

REFERENCES

 

Litigation:

No

Company status :

TRADING

Started :

01/07/2007

 

 

PRINCIPAL(S)

 

LOU LEONG KOK

S0128131C

Director

 

 

DIRECTOR(S)

 

CHAN FANNY

S1581535C

Company Secretary

Appointed on :

01/07/1900

 

Street :

866 TAMPINES STREET 83 #02-225

 

Town:

SINGAPORE

 

Postcode:

520866

 

Country:

Singapore

 

ADI AGUNG TIRTAMARTA

B 446204

Director

Appointed on :

01/07/2007

 

Street :

JL MEGARIA NO. 14 RT 01/RW01 PEGANGSAAN METENG KOMPLEX METROPOLE 21

 

Town:

JAKARTA PUSAT

 

Postcode:

10320

 

Country:

Indonesia

 

LOU LEONG KOK

S0128131C

Director

Appointed on :

01/07/2007

 

Street :

4 SUNDRIDGE PARK ROAD BRADDELL HEIGHTS ESTATE

 

Town:

SINGAPORE

 

Postcode:

358135

 

Country:

Singapore

 

 

 

ACTIVITY(IES)

 

Activity Code:

12095

INVESTMENT COMPANIES

Activity Code:

11320

HOLDING COMPANIES

Activity Code:

11760

IMPORTERS And EXPORTERS

Activity Code:

22190

TRADING COMPANIES

 
 
 
BASED ON ACRA'S RECORD                               
 
1) OTHER INVESTMENT HOLDING COMPANIES;                                
   INVESTMENT HOLDING COMPANIES                                       
 
2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); 
   GENERAL IMPORTERS, EXPORTERS AND GENERAL TRADING

 

 

SHAREHOLDERS(S)

 

CHARLESTON HOLDINGS PTE LTD

500,000

Company

 

Street :

16 RAFFLES QUAY #41-08 HONG LEONG BUILDING

Town:

SINGAPORE

Postcode:

048581

Country:

Singapore

 

DIAMOND MARITIME PTE. LTD.

500,000

Company

 

Street :

10 ANSON ROAD #13-05 INTERNATIONAL PLAZA

Town:

SINGAPORE

Postcode:

079903

Country:

Singapore

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

UNKNOWN

Liquidity :

UNKNOWN

Payments :

UNKNOWN

Trend :

UNKNOWN

Financial Situation:

UNKNOWN

 

 

 

FINANCIAL COMMENTS

 

NEWLY-SET UP COMPANY                                                  
SUBJECT BEING NEWLY INCORPORATED AND HAS YET TO FILE IN ITS FIRST SET OF ACCOUNTS. A NEWLY INCORPORATED COMPANY HAS UP TO 18 MONTHS FROM THE DATE OF INCORPORATION TO FILE IN ITS FIRST SET OF ACCOUNTS.
 
EXEMPT PRIVATE COMPANY                                                
WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT OWNED BY ANY CORPORATE   BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY IS  KNOWN AS AN EXEMPT PRIVATE COMPANY.
 
AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER AMOUNT OF PRIVACY THAN A   PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS  DIRECTORS, SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:     
 
1. THE COMPANY IS AN EXEMPT PRIVATE COMPANY.
 
2. THE AUDITED ACCOUNTS HAVE BEEN TABLED BEFORE THE SHAREHOLDERS  AT THE ANNUAL GENERAL MEETING.                                        
 
3. THE COMPANY IS ABLE TO MEET ITS LIABILITIES.                       
                                                                      
THERE IS THEREFORE NO DISCLOSURE TO THE PUBLIC OF THE ACCOUNTS OF THE COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITED EVERY YEAR AND APPROVED AT AN ANNUAL GENERAL MEETING OF THE COMPANY.                 
                                                                      
A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE GOVERNMENT MAY BECOME AN EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN THE NATIONAL INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION.           
                                                                      
EXEMPT FROM AUDIT                                                     
AN EXEMPT PRIVATE COMPANY IS EXEMPT FROM AUDIT REQUIREMENTS IF THE  STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31 MAY 2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED $2.5  MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT OF THE   TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE STILL     
REQUIRED TO MAINTAIN PROPER ACCOUNTING.

 

 

BACKGROUND/OPERATION

 

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON  01/07/2007 AS A EXEMPT LIMITED PRIVATE COMPANY AND IS TRADING UNDER  ITS PRESENT NAMESTYLE AS "STERLINK (VERNAL GRACE) PTE. LTD.".         
                                                                      
AS AT 06/011/2008, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 1,000,000 SHARES, OF A VALUE OF S$1,000,000.                          
 
                                                                      
PRINCIPAL ACTIVITIES:                                                 
 
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY   AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:
 
1) OTHER INVESTMENT HOLDING COMPANIES; INVESTMENT HOLDING COMPANIES                                       
 
2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); GENERAL IMPORTERS, EXPORTERS AND GENERAL TRADING
 
FROM THE RESEARCH CONDUCTED, THE FOLLOWING INFORMATION WAS GATHERED:  
                                                                                                                                                                          
FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS GATHERED:
 
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:                          
 
* WORLWIDE SHIPPING                                                   
                                                                      
INDUSTRIES SERVED:                                                    
* MARITIME
* SHIPPING                                                            
* ETC                                                                 
                                                                      
NO OTHER TRADE INFORMATION WAS MADE AVAILABLE
 
REGISTERED ADDRESS:                                                   
10 ANSON ROAD                                                         
#13-05                                                                
INTERNATIONAL PLAZA                                                   
SINGAPORE 079903
DATE OF CHANGE OF ADDRESS: 01/07/2007                                 
                                                                      
BUSINESS ADDRESS                                                      
16 RAFFLES QUAY                                                       
HONG LEONG BUILDING
#41-08                                                                
SINGAPORE 0485581                                                     
                                                                      
WEBSITE: -
 
EMAIL: -
 
 

MANAGEMENT

 

THE DIRECTORS AT THE TIME OF THIS REPORT ARE:                         
                                                                      
1) ADI AGUNG TIRTAMARTA, AN INDONESIAN                                
   - BASED IN INDONESIA
 
2) LOU LEONG KOK, A SINGAPOREAN                                       
   - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.
 
 

ADVERSE ON DIRECTORS

 

DIRECTOR'S NAME: LOU LEONG KOK                                        
ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE  PROPERTY 
 
OWNERSHIP: 1                                                 
 
ANNUAL VALUE: S$108,000                                               
 
CO-OWNER(S): NIL
                                                                      
* ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT. 
 
 

GENERAL COMMENTS

 

SINGAPORE'S COUNTRY RATING 2008                                                 
                                                                             
INVESTMENT GRADE
                                                                                
IN SINGAPORE, THE POLITICAL AND ECONOMIC SITUATION IS VERY GOOD. A QUALITY BUSINESS ENVIRONMENT HAS A POSITIVE INFLUENCE ON CORPORATE PAYMENT BEHAVIOUR.   
 
CORPORATE DEFAULT PROBABILITY IS VERY LOW ON AVERAGE.                           
 
ECONOMIC GROWTH REMAINED STRONG IN 2007 AND IN Q1 2008 (6.7%) THANKS TO A SHAR INCREASE IN CONSUMPTION SPURRED BY A BRIGHT EMPLOYMENT PICTURE, RISING REAL WAGES, AND A POSITIVE WEALTH EFFECT PRODUCED BY RISING PROPERTY PRICES. IN THIS CONTEXT, BANKRUPTCIES CONTINUE TO DECLINE, AS REFLECTED BY THE FAVOURABLE COFACE PAYMENT INCIDENT INDEX TREND. SINGAPORE MOREOVER BOASTS THE BEST GOVERNANCE IN  ASIA THANKS TO AN EFFECTIVE LEGAL SYSTEM AND A GOOD LEVEL OF FINANCIAL TRANSPARENCY.         
                                                          
HOWEVER, A GROWTH SLOWDOWN IS EXPECTED FOR 2008 (4.5%) AMID WEAKER DEMAND GROWTH IN THE UNITED STATES, SINGAPORE'S NUMBER TWO TRADING PARTNER. THE FOREIGN TRADE  CONTRIBUTION TO GROWTH WILL THUS DECLINE ESPECIALLY WITH EXPORTS REPRESENTING 210 PER CENT OF GDP.
 
INFLATION ACCELERATED IN 2007 AND REACHED 7.5% IN MAY 2008 BECAUSE OF RISING RAW MATERIAL PRICES. INDEED, SINGAPORE IMPORTS ALMOST ALL ITS ENERGY AND FOOD.      
 
HOWEVER, FOR THE ENTIRE YEAR, INFLATION SHOULD MODERATE AND REACH 2.8%.  THE FINANCIAL SITUATION HAS REMAINED ROBUST AS THE EQUILIBRIUM OF PUBLIC SECTOR FINANCES AND THE SOLIDITY OF A BANKING SYSTEM POISED TO ADOPT BASEL II PRUDENTIAL STANDARDS ATTEST. EXTERNAL ACCOUNTS CONTINUE MOREOVER TO SHOW LARGE SURPLUSES THANKS TO GOOD PERFORMANCE IN A RANGE OF SECTORS INCLUDING ELECTRONICS, TRANSPORT, CONSTRUCTION, TOURISM, AND FINANCIAL SERVICES. THE  DECLINE EXPECTED IN THE CURRENT ACCOUNT SURPLUS IN 2008 SHOULD NOT JEOPARDISE   SINGAPORE'S EXCEPTIONAL FINANCIAL SOLIDITY.
 
UNDERPINNED BY SUBSTANTIAL FISCAL RESERVES AND A LARGE MAJORITY IN PARLIAMENT, THE PEOPLE'S ACTION PARTY OF PRIME MINISTER LEE HSIEN LOONG HAS SOUGHT AT ONCE TO MAKE THE CITY-STATE MORE ATTRACTIVE TO FOREIGN INVESTORS AND TO BOLSTER THE   SPECIALISATION IN HIGH-VALUE ADDED SECTORS TO MEET THE GROWING COMPETITION FROM  LOW-COST ASIAN ECONOMIES. BESIDES REDUCTIONS IN CORPORATE INCOME TAX AND TAX INCENTIVES FOR COMPANIES SETTING UP OPERATIONS IN SINGAPORE, THE GOVERNMENT      CONTINUES TO PURSUE ITS INFRASTRUCTURE AND R&D INVESTMENT POLICY.               
 
                                                                               

ASSETS 

                                                                        

"THE COUNTRY HAS BEEN PURSUING AMBITIOUS DIVERSIFICATION STRATEGY, ESPECIALLY TO HIGH VALUE-ADDED SECTORS LIKE CHEMICALS, PHARMACEUTICALS, AND  FINANCE.        
                                                                
"IT IS AMONG THE MOST ADVANCED COUNTRIES OF ASIA IN QUALITY COMPETITIVENESS TERMS.                                                          
 
"SINGAPORE HAS BECOME A MAJOR EXPORTER OF CAPITAL IN ASIA IN MANY ECONOMIC SECTORS -SUCH AS FINANCE, TELECOMMUNICATIONS, TRANSPORT - NOTABLY VIA THE STATE- OWNED TEMASEK HOLDING COMPANY                                                   
 
"THE ECONOMY HAS BENEFITED FROM THE COUNTRY'S POLITICAL STABILITY AND EXCELLENT BUSINESS CLIMATE.
 
 

WEAKNESSES                                                                      

 
"SKILLED LABOUR IS IN SHORT SUPPLY IN THE SECTORS THE COUNTRY WISHES TO DEVELOP.                                                                        
 
"THE AGEING POPULATION COULD ULTIMATELY UNDERMINE ECONOMIC PERFORMANCE.        
 
"GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.                                   
 
"THE VERY OPEN ECONOMY IS VULNERABLE TO A WORLD ECONOMIC DOWNTURN.             
                                                                                

                                                                               

OVERVIEW OF SINGAPORE                                                           

                                                                                
PAST PERFORMANCE
                                                                                
THE SINGAPORE ECONOMY GREW AT A MODERATE PACE OF 2.1% IN 2Q 2008. ON AN  ANNUALISED QUARTER-ON-QUARTER BASIS, GROWTH FELL BY 6.0%, IN CONTRAST TO THE 15.7% GROWTH IN THE PREVIOUS QUARTER.
 
THE MANUFACTURING SECTOR FELL BY 5.2% IN 2Q 2008, COMPARED TO 2Q 2007. THE   DECLINE WAS MAINLY DRIVEN BY THE BIOMEDICAL MANUFACTURING CLUSTER WHICH FELL BY 28.0%.                                                                          
                                                                                
THE FINANCIAL SERVICES SECTOR ROSE BY A SMALLER 10.2% IN 1Q 2008, FOLLOWING A 13% GAIN IN 1Q 2008. GROWTH WAS ACROSS THE BOARD, SUPPORTED BY ROBUST EXPANSIONS IN BOTH THE DOMESTIC AND OFFSHORE BANKING SEGMENTS.                             
                                                                                
THE CONSTRUCTION SECTOR RECORDED HIGH GROWTH, RISING BY 17.4%, FOLLOWING THE ROBUST 15% GROWTH IN 1Q 2008.
                                                                                
THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.0% IN 2Q 2008, FASTER THAN THE 5.5% GROWTH IN 1Q 2008. NON-OIL RE-EXPORTS GREW BY 14.0% IN 1Q 2008, HIGHER THAN THE 11.0% GROWTH IN 1Q 2008. EXCLUDING MOTOR VEHICLES, RETAIL SALES FELL BY 1.4% IN 2Q 2008, COMPARED TO 1Q 2008.
                                                                                
THE TRANSPORT AND STORAGE SECTOR ROSE BY 5.7% IN 2Q 2008, MARGINALLY HIGHER THAN 5.4% IN 1Q 2008. THIS WAS ATTRIBUTED TO THE DOUBLE-DIGIT GROWTH FOR CONTAINER    THROUGHPUT.
 
THE HOTELS AND RESTAURANTS SECTOR GREW BY A SLIGHTLY SMALLER 2.1% IN 2Q 2008,    FOLLOWING THE 2.4% GROWTH IN 1Q 2008.                                           
                                                                                
THE INFORMATION AND COMMUNICATIONS SECTOR ROSE 7.6% IN 2Q 2008, HIGHER THAN THE 6.8% IN 1Q 2008.
                                                                                
THE BUSINESS SERVICES SECTOR EXPANDED BY 7.5%, SLOWER THAN THE 8.3% GAIN IN 1Q  2008.                                                                           
                                                                                

 

NEWS

                                                                                
IT'S RECESSION WATCH 2009                                                       
                                                                                
THE GLOOM WAS NOT JUST IN THE OFFICIAL NEWS - THAT SINGAPORE HAS SLIPPED INTOTECHNICAL RECESSION, THE FIRST TIME SINCE 2002, AND THAT THIS YEAR'S ECONOMIC GROWTH MIGHT ONLY HIT 3.0%.                                                     
                                                                                
IT WAS EVEN MORE VISIBLE IN THE OPINION OF SEVERAL ECONOMISTS: NEXT YEAR COULD   BE WORSE. CITIGROUP ECONOMIST KIT WEI ZHENG EXPECTS 2009 GROWTH TO BE "SLOWER, OR EVEN    
NEGATIVE". THE LAST TIME SINGAPORE EXPERIENCED A FULL-SCALE RECESSION WAS IN 2001, WHEN THE ECONOMY CONTRACTED BY 2.4% DURING THE YEAR.                      
                                                                                
IN FACT, SOME ECONOMISTS FELT THE CURRRENT CRISIS COULD SURPASS THE 1997 ASIAN FINANCIAL CRISIS, ECLIPSING THE POST-911 AND SARS SLUMPS IN RECENT YEARS. OR EVEN THE RECESSIONS TRIGGERED BY THE 1985 PAN ELECTRIC COLLAPSE AND 1973 OIL SHOCK.                                                                          
                                                                                
AND HOW QUICKLY SINGAPORE - THE FIRST ASIAN ECONOMY TO SLIP INTO RECESSION - RECOVERS HINGES ON WHETHER WESTERN GOVERNMENTS AND CENTRAL BANKS CAN RESOLVE THE CREDIT CRISIS IN THE COMING MONTHS.                                             
                                                                                
"IN THE WORST-CASE SCENARIOS, IT WILL BE FAR WORSE THAN ANYTHING WE'VE SEEN BEFORE BECAUSE WE ARE TALKING ABOUT JOB LOSSES WHICH WILL CUT ACROSS ALL INDUSTRIES," SAID CIMB-GK REGIONAL ECONOMIST SONG SENG WUN.                     
                                                                                
AND WHILE THE GOVERNMENT IS EXPECTED TO DIP INTO ITS COFFERS, THE ABILITY TO   STIMULATE THE ECONOMY COULD BE HINDERED BY THE RESOURCE CRUNCH IN THE  CONSTRUCTION SECTOR.
                                                                                
SAID SINGAPORE MANAGEMENT UNIVERSITY ECONOMICS PROFESSOR DAVIN CHOR:"THE         CONSTRUCTION SECTOR HAS RELATIVELY LIMITED CAPACITY TO EXPAND IN THE SHORT TERM."
 
BUT MR SONG ARGUED THAT THE CONSTRUCTION CRUNCH COULD BE A BLESSING IN DISGUISE, GIVEN THAT BUILDING COSTS WOULD "TUMBLE QUICKLY" BY THE FIRST QUARTER OF NEXT YEAR. SAID MR SONG: "PROJECTS, WHICH HAVE BEEN PUT ON THE BACKBURNER, CAN BE BROUGHT FORWARD."
 
AND WHILE MUCH HOPES ARE PINNED ON THE UPCOMING MARINA BAY SANDS INTEGRATED      RESORT - SLATED TO OPEN ITS DOORS NEXT YEAR - EXPERTS ARE CAUTIOUS ABOUT ITS IMPACT, ESPECIALLY LAS VEGAS SANDS - WHICH CLINCHED THE LICENCE TO BUILD THE IR - HAS SEEN GAMING EARNINGS FALL IN ITS CHIEF MARKETS IN THE US AND MACAU. SAID FORECAST ECONOMIST VISHNU VARATHAN: "FROM THE OPERATORS' POINT OF VIEW, THEY MAY BE FACING THEIR OWN FINANCIAL DIFFICULTIES. AND A SLOWING ECONOMY MEANS FEWER VISITORS, LESS SPENDING POWER."                                           
                                                                                
WHEN CONTACTED, MARINA BAY SANDS GENERAL MANAGER GEORGE TANASIJEVICH SAID THE GROUP "REMAINS 100% COMMITTED TO SINGAPORE AND TO HELPING SINGAPORE ACHIEVE ITS 
TOURISM GOALS".                                                                 
                                                                                
PRIME MINISTER LEE HSIEN LOONG REITERATED ON FRIDAY THAT SINGAPORE IS WELL- PLACED TO RIDE THROUGH THE "FINANCIAL STORM", BUOYED BY THE MOMENTUM FROM PROJECTS SUCH AS THE RECENT SINGAPORE GRAND PRIX. SAID MR LEE:"OUR FINANCIAL  SYSTEM IS SOUND, AND OUR ECONOMY REMAINS COMPETITIVE.                           
                                                                                
"OVER THE LAST FEW YEARS, WHEN CONDITIONS WERE GOOD, WE HAD CONSCIOUSLY DECIDED  TO MAKE THE BEST OF THE GOOD TIMES AND PRESSED ON WITH UPGRADING AND DIVERSIFYING OUR CONOMY. THIS WILL MEAN NEW AND BETTER JOBS,   EVEN IF SOME OLD ONES ARE LOST."                                                
                                                                                
MR VARATHAN EXPECTS THE ECONOMY TO GROW 3.0% NEXT YEAR - MATCHING THE OFFICIAL   ORECAST FOR GROWTH THIS YEAR.
                                                                                
UOB ECONOMIST HO WOEI CHEN FEELS THAT THE WORST IS YET TO COME.                 
                                                                                
SAID MD HO: "THE BANKS ARE THE ONES WHO HAVE BEEN HURT… WE WILL SEE THE CRISIS   RANSLATING INTO THE REAL SECTORS OF THE ECONOMY."
                                                                                
MANUFACTURING WILL CONTINUE TO BE A DRAG ON THE ECONOMY, WITH THE RETAIL AND     ERVICES INDUSTRY POISED FOR A HIT. BUT SINGAPORE, WHERE THE BANKING SCENE IS    OMINATED BY PRIVATE BANKING, WOULD LIKELY BE HURT LESS THAN ITS RIVAL HONG KONG, ASIA'S CENTRE FOR INVESTMENT BANKING, SAID MS HO.
                                                                                
MR VARATHAN EXPECTS INDUSTRIES DEALING IN ENERGY, FOOD AND WATER - WHICH ARE NOT KEY DRIVERS OF SINGAPORE'S ECONOMY - TO BE SHIELDED FROM THE DOWNTURN.          
                 

                                                              

OUTLOOK

                                                                                
THE COMPOSITE LEADING INDEX (CLI) ROSE MARGINALLY BY 0.5% IN 2Q 2008, FOLLOWING  THE 2.8% DECLINE IN 1Q 2008. OF THE NINE COMPONENTS WITHIN THE INDEX, THREE COMPONENTS RECORDED DECLINES WHILE THE REMAINING SIX COMPONENTS ROSE MARGINALLY.
 
THE SIX INDICATORS THAT REGISTERED IMPROVEMENTS ARE THE MONEY SUPPLY, NON-OIL SEA CARGO HANDLED, STOCK PRICE, US PURCHASING MANAGER'S INDEX, STOCK OF FINISHED GOODS AND DOMESTIC LIQUIDITY.                                                   
                                                                                
OVERALL, THE SINGAPORE ECONOMY REMAINED RESILENT IN 1ST HALF OF 2008, DESPITE THE SLOWDOWNS IN MAJOR EXTERNAL ECONOMIES AND GLOBAL INFLATION CONCERNS. THE ECONOMY GREW BY 4.5% IN 1ST HALF OF 2008.                                       
                                                                                
LOOKING AHEAD, THE GLOBAL ECONOMIC ENVIRONMENT WILL REMAIN WEAK FOR THE REST OF  THE YEAR AND WELL INTO 2009. THE DEVELOPED ECONOMIES ARE EXPERIENCING A BROAD    SLOWDOWN IN ECONOMIC ACTIVITY. SLUGGISH GROWTH IS EXPECTED OVER THE NEXT SIX TO TWELVE MONTHS, AS THE EFFECTS OF THE US FINANCIAL AND HOUSING SLUMPS RIPPLE ITS  EFFECT THROUGHOUT THE WORLD. THESE WILL HAVE AN ADVERSE IMPACT ON EMPLOYMENT,    BUSINESS CONFIDENCE, CONSUMER SPENDING AND OVERALL DEMAND. EMERGING ECONOMIES    PARTICULARY THOSE IN ASIA, HAVE CONTINUED TO GROW, PROVIDING SOME SUPPORT TO GLOBAL DEMAND AND GROWTH. HOWEVER, THE US AND EUROPE SLOWDOWN WILL HAVE A DOWNSIDE IMPACT ON THE ASIAN ECONOMIES. AT THE SAME TIME, INFLATION CONTINUES TO PERSIST AND POSES A CHALLENGES FOR POLICY MAKERS IN   COUNTRIES SUCH AS CHINA, INDIA, INDONESIA AND VIETNAM.                          
                                                                                
THE PACE OF GROWTH OF SINGAPORE'S ECONOMY HAS SLOWED DOWN, ATTRIBUTED MAINLY TO WEAKNESSES IN DOMESTIC AND EXTERNAL DEMAND. WHILE THE COMPOSITE LEADING          INDICATOR POINTS TOWARDS A SLIGHT PICKUP, BUSINESS PERFORMANCE OF PERFORMANCE    ACROSS THE SECTORS ARE MIXED.                                                   
                                                                                
IN VIEW OF THE OUTLOOK FOR THE MAJOR SECTORS AND A SLOWDOWN IN THE GLOBAL ECONOMIC ENVIRONMENT, THE MINISTRY OF TRADE AND INDUSTRY LOWERED THE 2008 GDP GROWTH FORECAST FROM 4.0-6.0% IN THE LAST QUARTER, TO 4.0-5.0%.                 
                                                                                
IN THE FINANCIAL SERVICES INDUSTRY, MAJORITY OF THE BANKS AND FINANCE COMPANIES  FORECAST BUSINESS OUTLOOK TO REMAIN THE SAME FOR THE 2ND HALF OF 2008 OVER THE 1ST HALF OF 2008. BANKS AND FINANCE COMPANIES ARE MORE OPTIMISTIC WHILE STOCK,  SHARE AND BOND BROKERS, FUND MANAGERS AND INSURANCE COMPANIES FORECAST SLOWER   BUSINESS ACTIVITY IN THE COMING MONTHS, MAINLY DUE TO UNCERTAINTY IN THE INVESTMENT CLIMATE AND GLOBAL ECONOMY. IN THE REAL ESTATE INDUSTRY, A NET WEIGHTED BALANCE OF 17% OF FIRMS PREDICTS A   SLOWER BUSINESS CLIMATE FOR THE COMING MONTHS.                                  
                                                                                
IN THE SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 24% OF FIRMS, EXPECT BUSINESS TO BE BRISK FOR THE COMING MONTHS WHILE A WEIGHTED 22% OF FIRMS PROJECTS LESS FAVOURABLE BUSINESS CONDITIONS. MAJORITY OF THE FIRMS (A WEIGHTED  54%) EXPECT BUSINESS ACTIVITIES TO REMAIN STABLE FOR THE COMING MONTHS. THIS  RESULTS IN A NET WEIGHTED BALANCE OF 2% OF FIRMS EXPECTING A POSITIVE BUSINESS  OUTLOOK. THIS MAGNITUDE IS SMALLER THAN THE NET WEIGHTED BALANCE OF 28% REGISTERED IN THE SAME PERIOD FOR 2007 (IE JUL - DEC 2007) AND COMPARABLE TO THE NET WEIGHTED BALANCE OF 3% RECORDED FOR APR-SEP 2008 IN THE PREVIOUS QUARTER.   
                                                                                
GENERALLY, THE MAJORITY OF WHOLESALERS, WITH A NET WEIGHTED BALANCE OF 55% OF    FIRMS, FORECASTS BUSINESS ACTIVITIES IN THE COMING MONTHS, TO REMAIN AT SIMILAR LEVELS. FOR THE REMAINING WHOLESALE FIRMS, A WEIGHTED 22% OF THEM EXPECTS BETTER BUSINESS CONDITIONS TO IMPROVE. THESE FIRMS ARE MAINLY IN THE BUSINESS OF WHOLESALE TRADE OF INDUSTRIAL MACHINERY AND EQUIPMENT, ELECTRONIC COMPONENTS, AND COMPUTER AND ACCESSORIES. ON THE OTHER HAND, A WEIGHTED 23% OF WHOLESALERS, MAINLY FROM FOOD AND BEVERAGES, AND PETROLEUM AND PETROLEUM PRODUCTS, FORECAST   BUSINESS CONDITIONS TO DETERIORATE IN THE COMING MONTHS. ON THE WHOLE, A NET WEIGHTED BALANCE OF 1% OF FIRMS EXPECTS GENERAL BUSINESS OUTLOOK TO REMAIN LESS FAVOURABLE.                                                                     
                                                                                
A NET WEIGHTED BALANCE OF 20% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS     CONDITIONS FOR THE PERIOD ENDING DECEMBER 2008. MOTOR VEHICLES RETAILERS, AND JEWWELLERY AND WATCHES CONTINUE TO PREDICT SLOWER SALES IN THE MONTHS AHEAD.    
                                                                                
IN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 8% OF FIRMS     FORECASTS BETTER FAVOURABLE BUSINESS CONDITIONS FOR THE COMING MONTHS. THE       SEGMENTS EXPECTING HIGHER BUSINESS ACTIVITIES ARE LAND TRANSPORT AND SHIPPING LINES.                                                                 
                                                                                
HOTELIERS REMAIN CONFIDENT ABOUT THE BUSINESS CLIMATE IN THE MONTHS AHEAD, WITH  A NET WEIGHTED BALANCE OF 37% OF HOTELIERS EXPECTING THEIR BUSINESSES TO IMPROVE. IN THE CATERING TRADE INDUSTRY, BUSINESS CONDITIONS ARE EXPECTED TO BE LESS OPTIMISTIC. IN PARTICULAR, CONVENTIONAL RESTAURANTS AND FOOD CATERERS MENTIONED HIGH OPERATING COSTS AS THE REASON FOR THE LESS POSITIVE OUTLOOK.     
                                                                                
IN THE INFORMATION AND COMMUNICATIONS INDUSTRY, A NET WEIGHTED BALANCE OF 12% OF FIRMS PREDICTS BETTER BUSINESS.                                                 
                                                                                
IN THE BUSINESS SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 17% OF FIRMS PREDICTS POSITIVE SENTIMENTS. THESE INCLUDE THOSE ENGAGED IN ENGINEERING, INDUSTRIAL DESIGN, TECHNICAL TESTING AND ANALYSIS, AND INVESTIGATION AND SECURITY ACTIVITIES.                                                            
                                                                                
EXTRACTED FROM:                MINISTRY OF TRADE AND INDUSTRY, SINGAPORE                       
                                                             SINGAPORE DEPARTMENT OF STATISTICS                              
                                                             TODAY
                       

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.74

UK Pound

1

Rs.74.37

Euro

1

Rs.62.78

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions