MIRA INFORM REPORT

 

 

Report Date :

21.10.2008

 

IDENTIFICATION DETAILS

 

Name :

NTEGRA MARKETING PRIVATE LIMITED

 

 

Formerly Known As :

INTEGRA PRIVATE LIMITED

 

 

Registered Office :

2 Battery Road #28-01 Maybank Tower 049907

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

04.03.2002

 

 

Com. Reg. No.:

200201693R

 

 

Legal Form :

Pte Ltd

 

 

Line of Business :

Wholesaler of Petrochemical Products; Trading in Products                                              

 

 

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   

 

NTEGRA MARKETING PRIVATE LIMITED

 

 

Line Of Business   

 
WHOLESALE OF PETROCHEMICAL PRODUCTS; TRADING IN PRODUCTS                                              

 

 

Parent Company    

 

INTEGRA HOLDINGS PRIVATE LIMITED

 (PERCENTAGE OF SHAREHOLDING: 100%)

 

 

Financial Elements

 

                                                             FY 2006

                                                             COMPANY

 

Sales                                                      : USD 777,188,119

Networth                                                 : USD 3,166,499

Paid-Up Capital                                          : USD 1

Net result                                                : USD 4,502,185

 

Net Margin(%)                                          : 0.58

Return on Equity(%)                                  : 142.18

Leverage Ratio                                          : 29.80

 

 

 

COMPANY IDENTIFICATION

 

Subject Company :

INTEGRA MARKETING PRIVATE LIMITED

Former Name :

INTEGRA PRIVATE LIMITED DATE OF CHANGE OF NAME:18/12/2003

Business Address:

2 BATTERY ROAD #28-01 MAYBANK TOWER

Town:

SINGAPORE

Postcode:

049907

Country:

Singapore

Telephone:

6220 9895

Fax:

6220 2908

ROC Number:

200201693R

 

 

PREVIOUS IDENTIFICATION

 

INTEGRA PRIVATE LIMITED DATE OF CHANGE OF NAME: 18/12/2003

 

 

SUMMARY

 

Legal Form:

Pte Ltd

Date Inc.:

04/03/2002

Summary year :

31/12/2006

All amounts in this report are in :

USD

Sales:

777,188,119

Networth :

3,166,499

Capital:

-

Paid-Up Capital:

1

Employees:

25

Net result :

4,502,185

Share value:

-

 
 
AUDITOR: MOORE STEPHENS LLP                                           
                                                                      
BASED ON ACRA'S RECORD 
                                              NO OF SHARE     CURRENCY                AMOUNT          
ISSUED ORDINARY                2                             SGD                        2.00
PAID-UP ORDINARY                -                             SGD                         2.00                  
                                                                      
BASED ON ACRA'S RECORD 
                                              NO OF SHARE     CURRENCY                AMOUNT          
ISSUED ORDINARY                 2,000,002               SGD                                       2,000,002.00
PAID-UP ORDINARY                 -                                           SGD                        20,002.00
 

 

REFERENCES

 

 

Litigation:

No

Company status :

TRADING

Started :

04/03/2002

 

 

PRINCIPAL(S)

 

ROGER ARNOLD HANCOCK

S2670930Z

Director

 

 

DIRECTOR(S)

 

TAN SAN-JU

S1495769C

Company Secretary

Appointed on :

01/09/2004

 

Street :

37 MCNAIR ROAD TOWNERVILLE

 

Town:

SINGAPORE

 

Postcode:

328532

 

Country:

Singapore

 

PETER GEORGE COSTALAS

740181918

Director

Appointed on :

08/03/2004

 

Street :

THE POUND HOUSE CARR LANE SLAPTON

 

Town:

DEVON

 

Postcode:

TQ7 2PU

 

Country:

United Kingdom

 

ROGER ARNOLD HANCOCK

S2670930Z

Director

Appointed on :

08/03/2004

 

Street :

12 KEPPEL BAY DRIVE #02-15 CARIBBEAN AT KEPPEL BAY

 

Town:

SINGAPORE

 

Postcode:

098641

 

Country:

Singapore

 

GEORGINA CAMPBELL FYFFE

G5860125Q

Director

Appointed on :

04/03/2002

 

Street :

46 CORONATION ROAD WEST #08-04 ASTRID MEADOWS

 

Town:

SINGAPORE

 

Postcode:

269262

 

Country:

Singapore

 

 

 

 

FORMER DIRECTOR(S)

 

KENNETH RICHARD EYEARS

F5647439X

 

YEO ENG SENG

S0073038F

 

 

 

ACTIVITY(IES)

 

Activity Code:

13355

MANAGEMENT CONSULTANTS

Activity Code:

22190

TRADING COMPANIES

Activity Code:

16350

PETROLEUM PRODUCTS

 
 
BASED ON ACRA'S RECORD 
(1) WHOLESALE OF PETROCHEMICAL PRODUCTS;                              
TRADING IN PRODUCTS
 

 

CHARGES

 

 

AVAILABLE

Date:

15/06/2005

Amount:

0

Comments :

 
CHARGE NO(S): C200503411/ C200503410/ C200503409                      
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE(S): ING BELGIUM, RUSSELLS, GENEVA BRANCH

 

 

AVAILABLE

Date:

19/01/2006

Amount:

0

Comments :

 
CHARGE NO: C200600505                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE: BNP PARIBAS (SUISSE) SA

 

 

NOT AVAILABLE

Amount:

0

Comments :

 
CHARGE NO: C2006004231 (DISCHARGED - 02/08/2006)                      
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE: BNP PARIBAS (SUISSE) SA

 

 

AVAILABLE

Date:

02/03/2007

Amount:

0

Comments :

 
CHARGE NO: C200701705                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE: HSH NORDBANK AG

 

 

AVAILABLE

Date:

20/02/2008

Amount:

0

Comments :

 
CHARGE NO: C200801831, C200801829, C200801826                         
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE: COOPERATIEVE CENTRALE RAFFEISEN-BOERENLEEBANK B.A.

 

 

AVAILABLE

Date:

06/08/2007

Amount:

0

Comments :

 
CHARGE NO: C200706334                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE: BNP PARIBAS

 

 

AVAILABLE

Date:

13/04/2004

Amount:

0

Comments :

 
CHARGE NO: C200401834                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE: FORTIS BANK (NEDERLAND) B.V.

 

 

NOT AVAILABLE

Date:

04/04/2005

Amount:

0

Comments :

 
CHARGE NO: C200501934 (DISCHARGED - 03/05/2006)                       
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE: DBS BANK LTD

 

 

AVAILABLE

Date:

23/03/2005

Amount:

0

Comments :

 
CHARGE NO: C200501670                                                 
AMOUNT SECURED: 0.00 AND ALL MONIES OWING                             
CHARGEE: AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

 

 

BANKERS

 

FORTIS BANK (NETHERLAND) N.V SINGAPORE BRANCH

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

DBS BANK LTD.

ING BELGIUM, RUSSELLS, GENEVA BRANCH

BNP PARIBAS (SUISSE) SA

HSH NORDBANK AG

BNP PARIBAS PRIVATE BANK NOMINEES SINGAPORE PTE LTD

COOPERATIEVE CENTRALE RAFFEISEN- BOERENLEENBANK

 

 

SHAREHOLDERS(S)

 

INTEGRA HOLDINGS PRIVATE LIMITED

2,000,002

Company

 

Street :

2 BATTERY ROAD #28-01 MAYBANK TOWER

Town:

SINGAPORE

Postcode:

049907

Country:

Singapore

 

 

FORMER SHAREHOLDER(S)

 

INTEGRA MARKETING LTD

2

 

 

 

HOLDING COMPANY

 

INTEGRA HOLDINGS PRIVATE LIMITED

200306319C

100%

 

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

AVERAGE

Liquidity :

SUFFICIANT

Payments :

REGULAR

Trend :

UPWARD

Financial Situation:

AVERAGE

 

 

 

FINANCIAL ELEMENTS

 

All amounts in this report are in :

USD

 

Audit Qualification:

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

Date Account Lodged:

25/08/2007

 

 

Balance Sheet Date:

31/12/2006

31/12/2005

31/12/2004

Number of weeks:

52

52

52

Consolidation Code:

COMPANY

COMPANY

COMPANY

 

--- ASSETS

 

Tangible Fixed Assets:

28,065

45,753

98,028

Total Fixed Assets:

28,065

45,753

98,028

Inventories:

5,518,424

1,392,236

1,355,139

Receivables:

90,837,224

30,288,925

48,534,214

Cash,Banks, Securitis:

677,145

18,954,512

10,612,913

Other current assets:

462,384

1,022,695

664,560

Total Current Assets:

97,495,177

51,658,368

61,166,826

TOTAL ASSETS:

97,523,242

51,704,121

61,264,854

--- LIABILITIES

 

 

 

Equity capital:

1

1

1

Profit & lost Account:

3,166,498

2,664,313

2,951,813

Total Equity:

3,166,499

2,664,314

2,951,814

Trade Creditors:

76,935,301

28,784,837

51,026,775

Prepay. & Def. charges:

133,631

124,811

90,393

Due to Bank:

11,553,308

19,239,679

6,028,330

Provisions:

4,643,000

 

350,000

Other Short term Liab.:

1,091,503

890,480

817,542

Total short term Liab.:

94,356,743

49,039,807

58,313,040

TOTAL LIABILITIES:

94,356,743

49,039,807

58,313,040

--- PROFIT & LOSS ACCOUNT

 

 

 

Net Sales

777,188,119

591,923,068

357,598,254

Purchases,Sces & Other Goods:

766,076,000

585,609,723

351,336,697

Gross Profit:

11,112,119

6,313,345

6,261,557

NET RESULT BEFORE TAX:

5,145,185

-267,605

4,026,257

Tax :

643,000

19,895

350,000

Net income/loss year:

4,502,185

-287,500

3,676,257

Interest Paid:

585,147

760,385

83,232

Depreciation:

38,348

44,697

42,747

Wages and Salaries:

728,815

704,535

448,946

Financial Income:

149,623

188,863

20,549

 

 

 

 

RATIOS

 

Date Account Lodged:

31/12/2006

31/12/2005

31/12/2004

Turnover per employee:

31,087,524.76

23,676,922.72

14,303,930.16

Net result / Turnover(%):

0.01

-0

0.01

Fin. Charges / Turnover(%):

0

0

0

Stock / Turnover(%):

0.01

0

0

Net Margin(%):

0.58

-0.05

1.03

Return on Equity(%):

142.18

-10.79

124.54

Return on Assets(%):

4.62

-0.56

6

Net Working capital:

3,138,434

2,618,561

2,853,786

Cash Ratio:

0.01

0.39

0.18

Quick Ratio:

0.97

1

1.01

Current ratio:

1.03

1.05

1.05

Receivables Turnover:

42.08

18.42

48.86

Leverage Ratio:

29.80

18.41

19.75

 
 
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 CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW OF 
THE FOLLOWING:                                                        
                                                                      
NET WORTH:                                                            
THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 18.85% FROM US$2,664,314 IN 2005 TO US$3,166,499 IN 2006. THIS WAS DUE TO HIGHER RESERVES OF US$3,166,498 (2005: US$2,664,313); A RISE OF18.85% FROM THE PRIOR YEAR.
    
                                                                 
LEVERAGE:                                                             
IN THE SHORT TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS     WHICH MADE UP 81.54% (2005: 58.70%) OF THE TOTAL CURRENT LIABILITIES   AND AMOUNTED TO US$76,935,301 (2005: US$28,784,837). THE BREAKDOWN IS AS FOLLOWS:                                                           
* TRADE PAYABLES                                                      
  - 2006: US$59,478,194 (2005: US$21,496,934)                         
* DUE TO IMMEDIATE HOLDING COMPANY                                    
  - 2006: US$2,886,586  (2005: NIL)
           
                                                           
AMOUNT DUE TO BANKS OF US$11,553,308 (2005: US$19,239,679) COMPRISES   OF:                                                                   
* BANK OVERDRAFTS  - 2006: US$5,603,308 (2005: US$19,239,679)         
* SHORT-TERM LOANS - 2006: US$5,950,000 (2005: NIL)
                                                                      
IN ALL, LEVERAGE RATIO ROSE FROM 18.41% TO 29.80% AS A RESULT OF A     GREATER RISE IN TOTAL LIABILITIES TO TOTAL EQUITY.
 
 
LIQUIDITY:                                                            
IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM    THE RISE IN NET WORKING CAPITAL AND CHANGES IN LIQUIDITY RATIOS.       CURRENT RATIO FELL TO 1.03 TIMES, DOWN FROM 1.05 TIMES AND QUICK RATIOFELL FROM 1.00 TIMES TO 0.97 TIMES. NET WORKING CAPITAL IMPROVED BY 19.85% FROM US$2,618,561 IN 2005 TO US$3,138,434 IN 2006.             
      
                                                                
PROFITABILITY:                                                        
REVENUE POSTED AN INCREASE OF 31.30% FROM US$591,923,068 IN 2005 TO    US$777,188,119 IN 2006. THIS RESULTED IN THE RISE OF NET PROFIT OF 16.66 TIMES TO US$4,502,185 (2005: US$-287,500). HENCE, NET MARGIN     ROSE TO 0.58% (2005: -0.05%).                                         
                                                                      
                                                                      
DEBT SERVICING:
DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS  CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN     ADDITION, ITS INTEREST COVERAGE WAS HEALTHY CONSIDERING THAT ITS       INTEREST EXPENSES WERE LOW AT US$585,147 IN 2006 (2005: US$760,385).

 

 

BACKGROUND/OPERATION

 

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON   04/03/2002 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "INTEGRA PRIVATE LIMITED".                                         
                                                                      
SUBSEQUENTLY ON 18/12/2003, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "INTEGRA MARKETING PRIVATE LIMITED".                               
                                                                      
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF     2,000,002 SHARES, OF A VALUE OF S$20,002.
          
                                                           
PRINCIPAL ACTIVITIES:                                                 
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY      
AUTHORITY (ACRA) BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:           
(1) WHOLESALE OF PETROCHEMICAL PRODUCTS
    TRADING IN PRODUCTS                                               
                                                                                                             
DURING THE FINANCIAL YEAR (S) UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE THOSE OF TRADING OF PETROCHEMICALS.                
                                                                                                                           
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:
                                                                      
ABOUT SUBJECT:                                                        
INTEGRA STARTED IN THE LATE 1980S AS A EUROPEAN OLEFINS TRADING HOUSE.
TODAY, INTEGRA HAS GROWN TO BECOME A GLOBAL MARKET LEADER WITH MORE   
THAN 60 FULL TIME EMPLOYEES WORLDWIDE. IN 2007, INTEGRA SHIPPED MORE
THAN 1.5M TONES OF PETROCHEMICALS AND REPORTED A TURNOVER IN EXCESS OF
US$1 BILLION
 
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:                          
     * PETROCHEMICAL TRADING IN OLEFINS, AROMATICS, FEEDSTOCKS,       
       CHLOR-ALKALI, FUEL STOCKS, PLASTICS
 
PRODUCTS DEALINGS:                                                    
     * OLEFINS                                                        
       - ETHYLENE, PROPYLENE (REFINERY, CHEMICAL, POLYMER GRADE),     
         CRUDE C4S, BUTADIENE, BUTENE 1, RAFFINATE 1, RAFFINATE 2,    
         ISOPRENE (IPM)
     * AROMATICS                                                      
       - PYGAS (PYROLYSIS GASOLINE), BENZENE, STYRENE MONOMER,        
         TOLUENE, XYLENES                                             
     * FEEDSTOCKS                                                     
       - LPG, CONDENSATES, NAPHTHAS GAS OIL
     * CHLOR-ALKALI                                                   
       - VCM (VINYL CHLORIDE MONOMER), EDC (ETHYLENE DICHLORIDE),     
         CAUSTIC SODA                                                 
     * FUEL STOCKS                                                    
       - MTBE, ETBE, BIOFUELS, ETHANOL, METHANOL, FUEL ADDITIVES
     * OTHERS                                                         
       - AO, EPI (EPICHLOROHYDRINE), MEG (MONOETHYLENE GLYCOL),       
         ALCOHOLS, NYLON FEEDSTOCKS AND GLYCERINE                     
     * PLASTICS                                                       
       - POLYETHYLENE (PE), POLYPROPYLENE (PP), POLYSTYRENE (PS), PVC
                                                                      
 
OVERSEAS OFFICES:                                                     
     * BELGIUM                                                        
     * ROMANIA                                                        
     * UNITED STATES OF AMERICA
                                  
                                                                      
FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS GATHERED:                                                                                                                    
                                                                      
SUBJECT ENGAGES IN GLOBAL LINE PETROCHEMICAL TRADING ACTIVITIES.     THEY WILL IMPORT THE PRODUCTS FROM OTHER COUNTRIES (EG CHINA) AND FROM THERE, EXPORT IT TO OTHER COUNTRIES (EG EUROPE). THE PRODUCTS     PURCHASED ARE USUALLY IN BULKS AND THE COMPANY TENDS TO BUY AT A    LOWER PRICE AND SELLS IT AT A HIGHER PRICE IN ORDER TO GAIN FROM   THE TRANSACTION. THE ABOVE CAN TAKE PLACE EITHER VIA DIRECT SALES OR FROM  THEIR AGENTS.
                                                                      
                                                                      
NUMBER OF EMPLOYEES (MARCH 08):                                       
* 25 (BASED ON HEAD OFFICE-SINGAPORE ONLY)                                                 
                                                                      
NO OTHER TRADE INFORMATION WAS AVAILABLE
                                                                      
ATTEMPTS HAVE BEEN MADE TO RECONFIRM THE ABOVE TRADE INFORMATION AND
OBTAIN OTHER INFORMATION. HOWEVER THE PERSON IN CHARGE   IS NOT IN.                                                                                                                
                                                                      
THE COMPANY IS A SUBSIDIARY OF INTEGRA HOLDINGS PRIVATE LIMITED, A COMPANY INCORPORATED IN SINGAPORE. INTEGRA HOLDINGS PRIVATE LIMITED    IS HELD 50:50 BY PELLONE LIMITED AND OCHIL DEVELOPEMENTS LTD, BOTH     INCORPORATED IN THE ISLE OF MAN.                                                     
                                                                      
NUMBER OF EMPLOYEES:  (31 DECEMBER)                                   
- COMPANY - 2006: 4 (2005: 4 2004: 7; 2003: 7; 2002: 4)
                                                                      
                                                                      
REGISTERED AND BUSINESS ADDRESS:                                      
2 BATTERY ROAD                                                        
#28-01 MAYBANK TOWER
SINGAPORE 049907                                                      
DATE OF CHANGE OF ADDRESS: 09/01/2004
 
WEBSITE: http://www.integra-global.com                                
                                                                      
                                                                      
EMAIL: -

 

 

MANAGEMENT

 

THE DIRECTORS AT THE TIME OF THIS REPORT ARE :                        
                                                                      
1) PETER GEORGE COSTALAS, A BRITISH                                   
   - BASED IN THE UNITED KINGDOM
                                                                      
2) GEORGINA CAMPBELL FYFFE, A BRITISH                                 
   - BASED IN SINGAPORE
 
3) ROGER ARNOLD HANCOCK, A SINGAPORE PERMANENT RESIDENT               
   - HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE:         
     OSPREY MARITIME LIMITED                                          
     ELLIPSE ENERGY PTE LTD

 

 

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 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.             
                                                                                
 

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.49.29

UK Pound

1

Rs.80.40

Euro

1

Rs.63.35

 

 

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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