MIRA INFORM REPORT

Report Date :

20.10.2008

IDENTIFICATION DETAILS

Name :	VICTORY MERCANTILE CORPORATION PTE LTD
Registered Office :	150 South Bridge Road #06-07 Fook Hai Building 058727
Country :	Singapore
Date of Incorporation :	21.10.2004
Com. Reg. No.:	200413646D
Legal Form :	Exempt Pte Ltd
Line of Business :	General Wholesale Trade (including General Importers and Exporters).

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 :	Regular
Litigation :	Clear

Subject Company

VICTORY MERCANTILE CORPORATION PTE LTD

Line Of Business 

 
GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS).

Parent Company

N/A

Financial Elements

Sales : N/A

Networth : N/A

Paid-Up Capital : S$1,229,526

Net result : N/A

Net Margin(%) : N/A

Return on Equity(%) : N/A

Leverage Ratio : N/A

COMPANY IDENTIFICATION

Subject Company :	VICTORY MERCANTILE CORPORATION PTE.LTD.
Business Address:	150 SOUTH BRIDGE ROAD #06-07 FOOK HAI BUILDING
Town:	SINGAPORE
Postcode:	058727
Country:	Singapore
Telephone:	6534 4174/65388110
Fax:	6538 7998
ROC Number:	200413646D

SUMMARY

Legal Form:	Exempt Pte Ltd
Date Inc.:	21/10/2004
Summary year :
All amounts in this report are in :	SGD
Sales:
Capital:
Paid-Up Capital:	1,229,526
Employees:	5
Net result :
Share value:	1

AUDITOR: STRATEGIC ASSURANCE & ASSOCIATES
 
BASED ON ACRA'S RECORD 
 NO OF SHARES CURRENCY  AMOUNT
ISSUED ORDINARY  1,229,526  SGD  1,229,526.00
PAID-UP ORDINARY   -  SGD  1,229,526.00

REFERENCES

Litigation:	No
Company status :	TRADING
Started :	21/10/2004

PRINCIPAL(S)

HITEN ANANTRAI KAMDAR

S1770858I

Managing Director

DIRECTOR(S)

KAMLESH S/O ANANTRAI KANDAR KAMDAR	S1495874F	Company Secretary
Appointed on :	21/10/2004
Street :	160 HAIG ROAD #06-01 HAIG COURT
Town:	SINGAPORE
Postcode:	438795
Country:	Singapore
ANANTRAI HARILAL KAMDAR	S1039546A	Director
Appointed on :	21/10/2004
Street :	160 HAIG ROAD #06-01 HAIG COURT
Town:	SINGAPORE
Postcode:	438795
Country:	Singapore
KAMLESH S/O ANANTRAI KANDAR KAMDAR	S1495874F	Director
Appointed on :	21/10/2004
Street :	160 HAIG ROAD #06-01 HAIG COURT
Town:	SINGAPORE
Postcode:	438795
Country:	Singapore
HITEN ANANTRAI KAMDAR	S1770858I	Director
Appointed on :	21/10/2004
Street :	160 HAIG ROAD #06-01 HAIG COURT
Town:	SINGAPORE
Postcode:	438795
Country:	Singapore
HITEN ANANTRAI KAMDAR	S1770858I	Managing Director
Appointed on :	21/10/2004
Street :	160 HAIG ROAD #06-01 HAIG COURT
Town:	SINGAPORE
Postcode:	438795
Country:	Singapore

ACTIVITY(IES)

Activity Code:	16940	PLASTIC PRODUCTS
Activity Code:	3970	CHEMICALS
Activity Code:	11760	IMPORTERS And EXPORTERS
Activity Code:	7605	ELECTRONIC COMPONENTS

 
 
 
BASED ON ACRA'S RECORD 
1) OTHER SUPPORT ACTIVITIES; TRADING OF CHEMICALS, TEXTILES, WOOD,
WOOD VANEERS, PLASTICS, CERAMICS
2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)

CHARGES

	NOT AVAILABLE
Date:	18/10/2007
Amount:	0
Comments :	CHARGE NO: C200708856 (DISCHARGED) AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): UCO BANK

BANKERS

UCO BANK

SHAREHOLDERS(S)

ANANTRAI HARILAL KAMDAR

409,842

Private Person

Street :	160 HAIG ROAD #06-01 HAIG COURT
Town:	SINGAPORE
Postcode:	438795
Country:	Singapore

KAMLESH S/O ANANTRAI KANDAR KAMDAR

409,842

Private Person

Street :	160 HAIG ROAD #06-01 HAIG COURT
Town:	SINGAPORE
Postcode:	438795
Country:	Singapore

HITEN ANANTRAI KAMDAR

409,842

Private Person

Street :	160 HAIG ROAD #06-01 HAIG COURT
Town:	SINGAPORE
Postcode:	438795
Country:	Singapore

PAYMENT HISTORY AND EXPERIENCES

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

FINANCIAL COMMENTS

NOTE: THE SUBJECT DID NOT FILE ITS FINANCIALS FOR THE YEAR 2006. PLEASE REFER TO THE LIMITED EXEMPT PRIVATE COMPANY CLAUSE BELOW FOR FURTHER INFORMATION.
 
 
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 21/10/2004 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "VICTORY MERCANTILE CORPORATION PTE. LTD.".
 
SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 1,229,526 SHARES OF A VALUE OF S$1,229,526.
 
PRINCIPAL ACTIVITIES:
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:
1) OTHER SUPPORT ACTIVITIES; TRADING OF CHEMICALS, TEXTILES, WOOD,
WOOD VANEERS, PLASTICS, CERAMICS
2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)
 
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:
 
SUBJECT WAS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE
CLASSIFICATION OF: TRADING COMPANIES
 
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:
* EXPORTER OF PETRO-CHEMICALS, SOLVENTS, INDUSTRIAL RAW MATERIALS AND
OTHER CHEMICALS.
 
 
PRODUCTS AND SERVICES:
* ACRYLIC
* ACRYLIC PRODUCTS
* BRIDGE RECTIFIERS
* CAPACITORS
* CHEMICALS : RETAIL
*  CHIP CAPACITORS
* CRYSTAL DIODES
* DIODES
* DRILLING MACHINES, EQUIPMENT & ACCESSORIES
* DRILLS
* ELECTRIC PORTABLE DRILLS
* ELECTRIC PORTABLE HAMMERS
* ELECTRIC PORTABLE SAWS
* ELECTRIC PORTABLE SCREWDRIVERS
* ELECTRIC POWER TOOLS
* ELECTROLYTIC CAPACITORS
* ELECTRONIC COMPONENT & PRODUCTS TRADERS
* ELECTRONIC COMPONENTS
* ELECTRONIC COMPONENTS & SERVICES
* HAMMERS
* HAND HAMMERS
* HAND TOOLS
* IMPORTERS & EXPORTERS
* INORGANIC CHEMICALS
* INTEGRATED CIRCUITS
* INTEGRATED CIRCUITS, EQUIPMENT & SERVICES
* LASER DIODES
* LIGHT EMITTING DIODES
* MACHINE TOOLS, ACCESSORIES & SERVICES
* MICROPROCESSORS
* PLIERS
* POLYESTER FILM CAPACITORS
* POLYETHYLENE
* POLYETHYLENE MATERIALS & PRODUCTS
* POLYPROPYLENE CAPACITORS
* POLYPROPYLENE MATERIALS & PRODUCTS
* POLYPROPYLENE RESINS
* POLYSTYRENE CAPACITORS
* POLYTETRAFLUOROETHYLENE MATERIALS & PRODUCTS
* POLYTETRAFLUOROETHYLENE RESINS
* POLYURETHANE
* POLYURETHANE MATERIALS & PRODUCTS
* POLYVINYL CHLORIDE
* POLYVINYL CHLORIDE MATERIALS & PRODUCTS
* RECTIFIERS
* RESONATORS
* SAWMILL EQUIPMENT, SUPPLIES & SERVICES
* SAWS
* SCRAP ELECTRONIC & COMPUTER PARTS
* SCRAPS
* SEMICONDUCTOR COMPONENTS & SERVICES
* SEMICONDUCTORS
* SMART CARD MEMORY CHIPS
* SPANNERS
* SULPHUR
* SYNTHETICS, SYNTHETIC PRODUCTS & SERVICES
* TANTALUM CAPACITORS
* THYRISTORS
* TOOLS
* TOOLS, PARTS & SUPPLIES
* TRADING COMPANIES
* TRANSISTORS
* TRIMMER CAPACITORS
* VARISTORS
 
 
EXPORT COUNTRY:
* INDIA
 
 
SUBJECT DOES NOT HAVE ANY IMPORT DEALINGS.
 
 
FROM THE TELE-INTERVIEW CONDUCTED, SUBJECT CONFIRMED ITS BUSINESS ADDRESS AND CONTACT NUMBERS. SUBJECT ALSO REVEALED THAT THEY HAVE ABOUT 5 EMPLOYEES. NO OTHER TRADE INFORMATION WAS AVAILABLE 
 
LITIGATIONS:
* SUBJECT HAS NO LITIGATION FOR THE PAST YEARS ACCORDING TO RELIABLE
SOURCES.
 
 
REGISTERED AND BUSINESS ADDRESS:
150 SOUTH BRIDGE ROAD
#06-07
FOOK HAI BUILDING
SINGAPORE 058727
DATE OF CHANGE OF ADDRESS: 21/10/2004
- RENTED PREMISE
- PREMISE OWNED BY: ANANTRAI HARILAL KAMDAR, HITEN A KAMDAR
AND KAMLESH ANANTRAI KANDAR KAMDAR
(DIRECTORS/SHAREHOLDERS)
 
 
WEBSITE: -
EMAIL : vmcorp@singnet.com.sg

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE:
 
1) ANANTRAI HARILAL KAMDAR, A SINGAPOREAN
- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.
 
2) KAMLESH S/O ANANTRAI KAMDAR, A SINGAPOREAN
- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.
 
3) HITEN A KAMDAR, A SINGAPOREAN
- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.

ADVERSE ON DIRECTORS

DIRECTOR'S NAME: ANANTRAI HARILAL KAMDAR
ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE
PROPERTY OWNERSHIP: 2
ANNUAL VALUE: S$6,600 (77 MARINE DRIVE #19-44)
CO-OWNER (S): KANCHAN A KAMDAR
 
ANNUAL VALUE: S$13,100 (150 SOUTH BRIDGE ROAD #06-07)
CO-OWNER (S): KAMLESH S/O ANANTRAI KANDAR KAMDAR
HITEN ANANTRAI KAMDAR
 
DIRECTOR'S NAME: KAMLESH S/O ANANTRAI KAMDAR
ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE
PROPERTY OWNERSHIP: 1
ANNUAL VALUE: S$13,100
CO-OWNER (S): ANANTRAI HARILAL KAMDAR
HITEN ANANTRAI KAMDAR
 
DIRECTOR'S NAME: HITEN A KAMDAR
ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE
PROPERTY OWNERSHIP: 2
ANNUAL VALUE: S$13,100 (150 SOUTH BRIDGE ROAD #06-07)
CO-OWNER (S): ANANTRAI HARILAL KAMDAR
KAMLESH S/O ANANTRAI KANDAR KAMDAR
 
ANNUAL VALUE: S$21,600 (160 HAIG RD #06-01)
CO-OWNER (S): SONIYA HITEN KAMDAR
 
* 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 2007
 
INVESTMENT GRADE
 
IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.
 
SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM
FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.
 
EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE
DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF
PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO
CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.
 
SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN
AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING
AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND
PHARMACEUTICAL SECTORS.
 
THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS
(ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF
HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN
INVESTORS INTERESTED IN ASIA.
 
CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY
OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE
PROGRESS IS SLOW.
AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD
CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.
 
ASSETS
" MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK
HOLDING COMPANY.
" HIGH QUALITY COMPETITIVENESS IN ASIA
" EXCELLENT BUSINESS CLIMATE
" POLITICAL STABILITY.
WEAKNESSES
" SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR
DEVELOPMENT.
" AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
" GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE
LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
" BEING THE WORLD'S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD
ECONOMIC DOWNTURNS.
 

 
 
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.48.83
UK Pound	1	Rs.85.12
Euro	1	Rs.65.86

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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