MIRA INFORM REPORT

Report Date :

24.11.2008

IDENTIFICATION DETAILS

Name :	KIDDE ASIA PTE. LTD.
Formerly Known As :	KIDDE ASIA FIRE & SECURITY PTE LTD
Registered Office :	70 Bendemeer Rd Luzerne #02-02 339940
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	02.12.1987
Com. Reg. No.:	198703782W
Legal Form :	Pte Ltd
Line of Business :	Distributor of Kidde Fire Protection Equipments

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear

Subject Company

KIDDE ASIA PTE. LTD.

Line Of Business 

DISTRIBUTOR OF KIDDE FIRE PROTECTION EQUIPMENTS

Parent Company

Financial Elements

FY 2005

COMPANY

Sales : S$14,172,000

Networth : S$-1,601,000

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

Net result : S$-931,000

Net Margin(%) : -6.57

Return on Equity(%) : 58.15

Leverage Ratio : -

COMPANY IDENTIFICATION

Subject Company :	KIDDE ASIA PTE. LTD.
Former Name :	KIDDE ASIA FIRE & SECURITY PTE LTD DATE OF CHANGE: 02/04/1994
Business Address:	70 BENDEMEER RD LUZERNE #02-02
Town:	SINGAPORE
Postcode:	339940
Country:	Singapore
Telephone:	6424 7979
Fax:	6424 7978
ROC Number:	198703782W
Easy Number company:	00004515326254

PREVIOUS IDENTIFICATION

KIDDE ASIA FIRE & SECURITY PTE LTD DATE OF CHANGE: 02/04/1994

SUMMARY

Legal Form:	Pte Ltd
Date Inc.:	02/12/1987
Summary year :	31/12/2005
All amounts in this report are in :	SGD
Sales:	14,172,000
Networth :	-1,601,000
Capital:
Paid-Up Capital:	1,000,000
Employees:	0
Net result :	-931,000
Share value:

AUDITOR : PRICEWATERHOUSECOOPERS

REFERENCES

Litigation:	No
Company status :	TRADING
Started :	02/12/1987

PRINCIPAL(S)

ANAND SHIVRAM IYER

S6980223J

Director

DIRECTOR(S)

WONG PENG SANG ROBERT	S1081941E	Company Secretary
Appointed on :	07/07/1999
Street :	133 SERANGOON AVENUE 3 #05-07 CHILTERN PARK CONDOMINIUM
Town:	SINGAPORE
Postcode:	556113
Country:	Singapore
ANAND SHIVRAM IYER	S6980223J	Director
Appointed on :	14/11/2006
Street :	239 PASIR RIS STREET 21 #07-29
Town:	SINGAPORE
Postcode:	510239
Country:	Singapore
HARINATH KRISHNAMURTHY	Z1228744	Director
Appointed on :	14/11/2006
Street :	F13 GARDEN HOUSE 476 MING YUE ROAD
Town:	SHANGHAI
Country:	China

FORMER DIRECTOR(S)

LOW NEE TAN LENG FONG	S0379145I
O'HARE JOHN ALAN	072621
TEH GEOK KOON RONALD	S1148157D
NG MARN SIA	S1180176E
TAN SHOU CHIEH	S1394230G
SUGIANTO HIMAWAN	A233406
DEDI TANUKUSUMAH	A799769
WILLIAM MARTIN MOUAT	761104641
DEREK JAMES ADDISON	740229679
MICHAEL JAMES ABBOTT	761028703
MATTHEW JEREMY GRIERSON	G5518321Q

ACTIVITY(IES)

Activity Code:	11760	IMPORTERS And EXPORTERS
Activity Code:	4990	COMMISSION MERCHANTS

BASED ON ACRA'S RECORD 
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)
2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG: COMMISSION AGENCIES)

SHAREHOLDERS(S)

UNITED TECHNOLOGIES LUXEMBIURG S.A.R.L.

1,000,000

Company

Street :	560, RUE DE NEUDORF, L-2220
Country:	Luxembourg

FORMER SHAREHOLDER(S)

O'HARE JOHN ALAN

1

NG MARN SIA

1

DEDI TANUKUSUMAH

1

CHUBB INTERNATIONAL HOLDINGS LTD

499,999

HOLDING COMPANY

UNITED TECHNOLOGIES LUXEMBIURG S.A.R.L.

UF41645C

100%

PAYMENT HISTORY AND EXPERIENCES

Trade Morality:	AVERAGE
Liquidity :	UNKNOWN
Payments :	UNKNOWN
Trend :	UNKNOWN
Financial Situation:	UNKNOWN

FINANCIAL ELEMENTS

All amounts in this report are in :

SGD

Audit Qualification:	SCOPE LIMITATION	SCOPE LIMITATION	UNQUALIFIED (CLEAN) OPINION
Date Account Lodged:	06/05/2008
Balance Sheet Date:	31/12/2005	31/12/2004	31/12/1997
Number of weeks:	52	52	39
Consolidation Code:	COMPANY	COMPANY	COMPANY

--- ASSETS
Preliminary Exp			29,000
Tangible Fixed Assets:			24,110
Total Fixed Assets:	292,000	247,000	53,110
Inventories:	1,799,000	2,213,000	427,294
Receivables:	3,146,000	3,914,000	504,241
Cash,Banks, Securitis:	1,308,000	843,000	599
Other current assets:	84,000	60,000	23,419
Total Current Assets:	6,337,000	7,030,000	955,553
TOTAL ASSETS:	6,629,000	7,277,000	1,008,663
--- LIABILITIES
Equity capital:	1,000,000	1,000,000	500,000
Profit & lost Account:	-2,861,000	-1,930,000	-952,462
Surplus equity:	260,000	260,000
Total Equity:	-1,601,000	-670,000	-452,462
Long Term Loans:	3,550,000	2,759,000
Total L/T Liabilities:	3,550,000	2,759,000
Trade Creditors:	1,575,000	2,408,000	748,828
Due to Bank:	1,997,000	1,840,000	653,377
Other Short term Liab.:	200,000	393,000	58,920
Total short term Liab.:	4,680,000	5,188,000	1,461,125
Prepay. & Def. charges:	908,000	547,000
TOTAL LIABILITIES:	8,230,000	7,947,000	1,461,125
--- PROFIT & LOSS ACCOUNT
Net Sales	14,172,000	11,397,000	1,529,380
Gross Profit:	1,309,000	1,134,000
NET RESULT BEFORE TAX:	-931,000	-760,000	-281,843
Net income/loss year:	-931,000	-760,000	-281,843
Interest Paid:	185,000	118,000
Depreciation:	80,000	74,000
Purchases,Sces & Other Goods:	-12,863,000	-10,263,000

RATIOS

Date Account Lodged:	31/12/2005	31/12/2004	31/12/1997
Turnover per employee:	Infinity	Infinity	Infinity
Net result / Turnover(%):	-0.07	-0.07	-0.18
Fin. Charges / Turnover(%):	0.01	0.01
Stock / Turnover(%):	0.13	0.19	0.28
Net Margin(%):	-6.57	-6.67	-18.43
Return on Equity(%):	58.15	113.43	62.29
Return on Assets(%):	-14.04	-10.44	-27.94
Net Working capital:	1657000	1842000	-505572
Cash Ratio:	0.28	0.16	0
Quick Ratio:	0.95	0.92	0.35
Current ratio:	1.35	1.36	0.65
Receivables Turnover:	79.92	123.63	118.69
Leverage Ratio:

 
Net Margin  : (100*Net income loss year)/Net sales
Return on Equity  : (100*Net income loss year)/Total equity
Return on Assets  : (100*Net income loss year)/Total fixed assets
Dividends Coverage  : Net income loss year/Dividends
Net Working capital  : (Total current assets/Total short term liabilities)/1000
Cash Ratio  : Cash Bank securities/Total short term liabilities
Quick Ratio  : (Cash Bank securities+Receivables)/Total Short term liabilities
Current ratio  : Total current assets/Total short term liabilities
Inventory Turnover  : (360*Inventories)/Net sales
Receivables Turnover  : (Receivable*360)/Net sales
Leverage Ratio  : Total liabilities/(Total equity-Intangible assets)

FINANCIAL COMMENTS

THE FINANCIAL STATEMENT IN THIS REPORT IS THOSE OF 2005 AND IS CONSIDERED OUTDATED. HENCE, FINANCIAL ANALYSIS IS NOT CONDUCTED. THE FINANCIAL STATEMENT SERVES AS A REFERENCE ONLY. IN REPLACEMENT, ADVERSE CHECK ON ITS LOCAL DIRECTORS IS MADE.

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 02/12/1987 AS A LIMITED PRIVATE COMPANY. 
 
SUBSEQUENTLY, ON 02/04/1994, SUBJECT CHANGED TO THE NAMESTYLE AS "GUARDALL ASIA PTE LTD"
 
SUBSEQUENTLY, ON 05/06/1998, SUBJECT CHANGED TO THE NAMESTYLE AS "KIDDE ASIA FIRE & SECURITY PTE LTD"  
 
SUBSEQUENTLY, ON 24/10/2002, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE AS "KIDDE ASIA PTE. LTD.". 
  
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) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)
2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG: COMMISSION AGENCIES)
  
FROM THE RESEARCH CONDUCTED, THE FOLLOWING INFORMATION WAS GATHERED: 
  
SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: FIRE PROTECTION EQUIPMENT
 
FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS GATHERED: 
  
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:
* DISTRIBUTOR OF KIDDE FIRE PROTECTION EQUIPMENTS. 
* SUBJECT OPERATES AS A BACK OFFICE IN SINGAPORE AS FACTORIES ARE 
 OVERSEAS.  
 
NO OTHER TRADE INFORMATION WAS MADE AVAILABLE 
 
ON 26 AUGUST 2005, UNITED TECHNOLOGIES LUXEMBOURG S.A.R.L, A CORPORATION INCORPORATED IN LUXEMBOURG, ACQUIRED 1,000,000 SHARES OF THE COMPANY FROM KIDDE INTERNATIONAL LTD, INCORPORATED IN THE UNITED KINGDOM, AND BCAME THE COMPANY'S IMMEDIATE HOLDING CORPORATION.
  
THE ULTIMATE HOLDING CORPORATION IS UNITED TECHNOLOGIES CORPORATION, A CORPORATION INCORPORATED IN UNITED STATES OF AMERICA. 
  
REGISTERED ADDRESS:
207 KALLANG BAHRU 
CHUBB SINAGPORE PTE LTD 
SINGAPORE 339343  
DATE OF CHANGE OF ADDRESS: 18/11/2005
OTHER BUSINESS ADDRESSES: 
70 BENDEMEER RD LUZERNE 
#02-02 
SINGAPORE 339940 
- OFFICE
 
25 TAGORE LANE 
#02-10A  
SINGAPORE 787602 
- WAREHOUSE
 
WEBSITE: -  
 
EMAIL: -

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE: 
 
1) ANAND SHIVRAM IYER, A SINGAPOREAN 
 - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.
 
2) HARINATH KRISHNAMURTHY, AN INDIAN 
 - BASED IN CHINA

ADVERSE ON DIRECTORS

DIRECTOR'S NAME: ANAND SHIVRAM IYER 
ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE 
PROPERTY OWNERSHIP: NIL 
ANNUAL VALUE: N.A.  
CO-OWNER(S): N.A.
 
* 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 SHARP INCREASE IN CONSUMPTION SPURRED BY A BRIGHT EMPLOYMENT PICTURE, RISING REALWAGES, 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. 
 
  
 
WHOLESALE AND RETAIL TRADE SECTOR 
 
PAST PERFORMANCE
  
THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.0% IN 2Q 2008, HIGHER THAN THE 
5.5% GROWTH IN 1Q 2008. NON-OIL RE-EXPORTS GREW BY 14.0% IN 2Q 2008, STRONGER 
THAN THE 11.0% GROWTH IN 1Q 2008. RETAIL SALES FELL BY 2.9% IN 2Q 2008. HOWEVER,
THIS REPRESENTED A DECLINE OVER A RELATIVELY HIGHER BASE IN 2Q 2007(8.1%
GROWTH). EXCLUDING MOTOR VEHICLES, RETAIL SALES FELL BY 1.4% IN 2Q 2008, IN 
CONTRAST TO THE 1.4% GROWTH IN 1Q 2008.  
 
DOMESTIC WHOLESALE TRADE INDEX
THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 11.1% IN 2Q 2008 OVER 1Q 2008. 
EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 2.9%. 
 
AFTER SEASONAL ADJUSTMENT, DOMESTIC SALES ROSE BY 4.5% IN 2Q 2008 OVER 1Q 2008.
EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 1.9%. 
 
ON A YEAR-ON-YEAR BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 25.4% OVER
THE PREVIOUS YEAR. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 4.7%. AFTER 
REMOVING PRICE EFFECT, THE OVERALL DOMESTIC WHOLESALE TRADE FELL BY 2.0% IN 2Q
2008 OVER 2Q 2007. 
  
ON A QUARTER-OVER-QUARTER BASIS, MOST WHOLESALE SECTORS REPORTED HIGHER DOMESTIC
SALES AFTER RECORDING SLOWER BUSINESS IN THE PREVIOUS QUARTER.
DOMESTIC SALES OF TIMBER, PAINTS AND CONSTRUCTION MATERIALS, AND INDUSTRIAL AND 
CONSTRUCTION MACHINERY REGISTERED INCREASES OF 22.7% AND 21.1% IN 2Q 2008. 
 
PETROLEUM AND PETROLEUM PRODUCTS, AND CHEMICALS AND CHEMICAL PRODUCTS ROSE BY 
20.2% AND 12.6% RESPECTIVELY IN 2Q 2008 OVER 1Q 2008. AFTER ADJUSTING FOR PRICE
CHANGES, SALES REMAINED AT SIMILAR LEVELS AS 1Q 2008. 
 
CONVERSELY, DOMESTIC GENERAL WHOLESALE TRADE FELL BY 15.2%. IT WAS FOLLOWED BY 
DOMESTIC SALES OF FOOD, BEVERAGES AND TOBACCO, SHIP CHANDLERS AND BUNKERING, AND
HOUSEHOLD EQUIPMENT AND FURNITURE WHICH CONTRACTED BY 4.1% TO 6.9% OVER 1Q 2008.
  
ON A YEAR-ON-YEAR BASIS, THE WHOLESALE SECTORS RECORDED MIXED PERFORMANCE IN 
DOMESTIC SALES IN 2008 OVER 2Q 2007. 
  
THE DOMESTIC SALES OF PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND
BUNKERING, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, AND CHEMICALS AND CHEMICAL
PRODUCTS ROSE BY 17.8% TO 54.7% IN 2Q 2008. SALES OF TIMBER, PAINTS AND 
CONSTRUCTION MATERIALS ROSE BY 8.7% OVER 2Q 2007. 
 
CONVERSELY, DOMESTIC GENERAL WHOLESALE TRADE FELL BY 24.6%. WHOLESALE TRADE OF
FOOD, BEVERAGES AND TOBACCO, HOUSEHOLD EQUIPMENT AND FURNITURE, AND TRANSPORT 
EQUIPMENT FELL BY 7.7% TO 9.3%. DOMESTIC SALES OF ELECTRONIC COMPONENTS DECLINED
BY 4.3% IN 2Q 2008 WHILE TELECOMMUNICATIONS AND COMPUTERS REMAINED STABLE.  
 
FOREIGN WHOLESALE TRADE INDEX
 
FOREIGN WHOLESALE TRADE SALES ROSE BY 11.8% IN 2Q 2008 OVER 1Q 2008. EXCLUDING 
PETROLEUM, SALES ROSE BY 4.7%. 
 
AFTER SEASONAL ADJUSTMENT, FOREIGN SALES ROSE BY 6.7% OVER 1Q 2008. EXCLUDING
PETROLEUM, SALES ROSE SLIGHTLY BY 1.0%. 
 
ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE SALES ROSE BY 28.4% OVER 1Q 2008. 
EXCLUDING PETROLEUM, SALES ROSE BY 15.3%. AFTER REMOVING PRICE EFFECT, OVERSEAS 
SALES ROSE SLIGHTLY BY 1.1% OVER 2Q 2007.
 
COMPARED TO 1Q 2008, FOREIGN SALES ROSE IN THE MAJORITY OF WHOLESALE SECTORS IN 
2Q 2008. 
 
FOOD, BEVERAGES AND TOBACCO WHOLESALERS REPORTED HIGHER OVERSEAS SALES OF 21.9%
IN 2Q 2008 OVER 1Q 2008, THE LARGEST INCREASE AMONG ALL SECTORS. IT WAS FOLLOWED
BY PETROLEUM AND PETROLEUM PRODUCTS, AND HOUSEHOLD EQUIPMENT AND FURNITURE WITH 
INCREASES OF 19.4$ AND 16.1% RESPECTIVELY. FOREIGN SALES OF SHIP CHANDLERS AND 
BUNKERING ROSE BY 8.1% IN 2Q 2008 OVER 1Q 2008.TIMBER, PAINTS AND CONSTRUCTION 
MATERIALS, CHEMICALS AND CHEMICAL PRODUCTS, AND INDSUTRIAL AND CONSTRUCTION
MACHINERY ALSO ROSE BY BETWEEN 5.8% TO 7.2%. 
  
AFTER ADJUSTING FOR PRICE INCREASES, THE SALES VOLUME OF PETROLEUM AND PETROLEUM
PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS, SHIP CHANDLERS AND BUNKERING 
CONTRACTED COMPARED TO 1Q 2008.
  
CONVERSELY, FOREIGN SALES OF TELECOMMUNICATIONS AND COMPUTERS, AND GENERAL 
WHOLESALE TRADE FELL IN 2Q 2008 OVER 1Q 2008. SALES OF ELECTRONIC COMPONENTS 
REMAINED STABLE AS COMPARED TO 1Q 2008.
COMPARED TO A YEAR AGO, MOST WHOLESALE SECTORS REPORTED DOUBLE-DIGIT GROWTHS IN 
FOREIGN SALES IN 2Q 2008. 
  
WHOLESALING OF FOOD, BEVERAGES AND TOBACCO CONTINUED TO RECORD HIGHER GROWTH 
RATES IN FOREIGN SALES, WITH HIGHER TURNOVER OF 94.8% IN 2Q 2008 OVER A YEAR
AGO. AFTER ADJUSTING FOR PRICES, SALES VOLUME ROSE BY 77.3% OVER A YEAR AGO. 
  
WITH HIGHER FUEL PRICES. WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS, 
SHIP CHANDLERS AND BUNKERING REPORTED HIGHER FOREIGN SALES OF 43.7% AND 38.1% 
RESPECTIVELY OVER A YEAR AGO. AFTER REMOVING PRICE EFFECT, THE SALES VOLUME OF
PETROLEUM AND PETROLEUM PRODUCTS FELL BY 10.7% WHILE SALES VOLUME OF SHIP 
CHANDLERS AND BUNKERING DECLINED BY 13.6. 
  
GENERAL WHOLESALE TRADE, CHEMICALS AND CHEMICAL PRODUCTS, TRANSPORT EQUIPMENT, 
AND HOUSEHOLD EQUIPMENT AND FURNITURE, AND INDUSTRIAL AND CONSTRUCTION MACHINERY
ALSO REGISTERED STRONG SALES GROWTH OF BETWEEN 5.8% TO 24.7%. 
 
CONVERSELY, FOREIGN SALES OF ELECTRONIC COMPONENTS, TIMBER, PAINTS AND 
CONSTRUCTION MATERIALS, AND TELECOMMUNICATIONS AND COMPUTERS FELL BY 4.9% TO 
8.6% IN 2Q 2008 COMPARED TO 2Q 2007.
 

NEWS 
  
RETAIL SPENDING DOWN FOR THIRD STRAIGHT MONTH
RETAIL SPENDING FELL FOR THE THIRD STRAIGHT MONTH IN AUGUST AS DEMAND FOR CARS 
AND RECREATIONAL GOODS DROPPED AMID THE COUNTRY'S FIRST RECESSION SINCE 2002. 
  
WHILE SPENDING ROSE 4.2% FROM AUGUST LAST YEAR, IT WAS 5.8% FROM JULY THIS YEAR,
ACCORDING TO THE RETAIL SALES INDEX RELEASED BY THE DEPARTMENT OF STATISTICS
(DOS) YESTERDAY.  
 
TOTAL RETAIL SALES IN AUGUST WERE ESTIMATED AT S$2.71 BILLION, DOWN FROM S$2.88 
BILLION IN JULY.
THE SLOWDOWN IN SPENDING MEANT PEOPLE SPLASHED OUT LESS ON CARS, FURNITURE AND 
HOUSEHOLD EQUIPMENT, PETROL, APPAREL, FOOTWEAR AND RECREATIONAL GOODS. 
SALES FELL ACROSS THE BOARD FROM THEIR JULY TAKINGS, WITH DECLINES RANGING FROM 
3.6% TO 20.4%.
BUT THERE WAS A DOUBLE-DIGIT RISE IN SALES OF BIG-TICKET LUXURY ITEMS. 
TELECOMMUNICATIONS APPARATUS AND COMPUTER RETAILERS ENJOYED SALES GROWTH OF 
19.5%, WHILE THE WATCH AND JEWELLERY SECTOR'S RECEIPTS ROSE BY 13.6% IN JULY. 
  
A RECENT STRAITS TIMES SURVEY OF 62 TENANTS IN SIX ORCHARD ROAD MALLS FOUND
RETAIL REVENUES HAVE FALLEN BY AS MUCH AS 30.0% IN THE PAST THREE WEEKS, 
COINCIDING WITH THE BANK FAILURES, STOCK MARKET ROUTS AND GROWING FEARS OVER THE
GLOBAL FINANICAL TURMOIL. 
 
SEVERAL STORES HAVE ALSO LAUNCHED MID-SEASON SALES, AN EXERCISE UNUSUALLY
UNDERTAKEN ONLY IN PARTICULARY SLOW PERIODS. 
 
THE AUGUST FIGURES WERE MORE ENCOURAGING, HOWEVER, WHEN COMPARED WITH THE SAME 
PERIOD LAST YEAR. VIRTUALLY ALL SEGMENTS, FROM DEPARTMENT STORES TO 
SUPERMARKETS, REPORTED DOUBLE-DIGIT GROWTHS OF 11.2 TO 29.6%. HOWEVER, MOTOR
VEHICLE SALES FELL 12.9% AND RECREATIONAL GOODS SALES CONTRACTED BY 6.8%. 
  
INFLATION MAY HAVE PUSHED SALES FIGURES UP. AFTER REMOVING THE EFFECT OF HIGHER 
PRICES, WHICH WOULD GIVE A HIGHER OVERALL SALES VALUE, RETAIL SALES ACTUALLY 
REMAINED UNCHANGED FROM A YEAR AGO.
 
VALUE OF PETROL SALES IN MARCH SOARED 39%, AS A RESULT OF RISING CRUDE OIL 
PRICES, EVEN THOUGH THE ACTUAL VOLUME WAS ONLY MARGINALLY HIGHER. 
PETROL STATION SALES POSTED THE FASTEST GROWTH OF ALL RETAIL SEGMENTS IN MARCH, 
ACCORDING TO FIGURES THE DEPARTMENT OF STATISTICS RELEASED YESTERDAY.
PETROL SALES ROSE 28.2% IN FEBRUARY. 
  
MOST RETAIL SEGMENTS POSTED HIGHER GROWTH MARCH AFTER A WEAKER SHOWING IN 
FEBRUARY FOR THE COMPUTERS, FURNITURE, OPTICAL GOODS AND BOOKS SEGMENTS. BUT 
MOTOR VEHICLES FELL 8.1% FROM MARCH 2007 AS A RESULT OF THE ESCALATING PETROL
PRICES. CRUDE OIL HIT ALMOST US$127 A BARREL RECENTLY. 
 
THE SUPERMARKET AND FOOD AND BEVERAGE SEGMENTS ALSO REPORTED LOWER SALES 
ACTIVITY THAN IN FEBRUARY, WITH FALLS OF 4.7% AND 11.9%, RESPECTIVELY. 
OVERALL RETAIL SALES ROSE BY 5.6% COMPARED TO MARCH 2007. EXCLUDING MOTOR
VEHICLES, SALES VOLUME ROSE BY 12.5%.  
 
OCBC ECONOMIST SELENA LING NOTED THE RETAIL NUMBERS INDICATED RELATIVELY HEALTHY
CONSUMER SPENDING. "THIS IS A TESTIMONY TO THE FACT THAT THE SINGAPOREAN ECONOMY
IS STILL ENJOYING BROAD-BASED GROWTH DESPITE THE GLOBAL SLOWDOWN," SHE SAID.
THE TOTAL VALUE OF RETAIL SALES IN MARCH WAS ESTIMATED AT S$2.89 BILLION, 
COMPARED WITH S$2.59 BILLION IN FEBRUARY. 
  
OUTLOOK
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.
EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE 
 SINGAPORE DEPARTMENT OF STATISTICS 
 THE STRAITS TIMES 

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.03
UK Pound	1	Rs.74.42
Euro	1	Rs.62.71

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%)

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