MIRA INFORM REPORT

 

 

Report Date :

24.10.2008

 

IDENTIFICATION DETAILS

 

Name :

MEWAH COMMODITIES PTE. LTD.

 

 

Formerly Known As :

M.O.I. YEAST INTERNATIONAL PTE LTD

 

 

Registered Office :

5 International Business Park #05-00 609914

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

18.06.2001

 

 

Com. Reg. No.:

200104019W

 

 

Legal Form :

Pte Ltd

 

 

Line of Business :

Trading In Edible Oil

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

Subject Company   

 

MEWAH COMMODITIES PTE. LTD.

 

 

Line Of Business  

 

TRADING IN EDIBLE OIL

 

 

Parent Company    

 

 NGO CHEW HONG CORPORATION PTE LTD                                            

(PERCENTAGE OF SHAREHOLDINGS: 100.00)

 

 

Financial Elements

 

                                                FY 2006

                                                COMPANY                   

Sales                                        : S$ -

Networth                                               : S$  -8,140

Paid-Up Capital                                                                                                       : S$ 100,000

Net result                                  : S$  23,988

 

Net Margin(%)                           : -

Return on Equity(%)                   : -294.69

Leverage Ratio                           :  -23.13

 

 

 

 

COMPANY IDENTIFICATION

 

Subject Company :

MEWAH COMMODITIES PTE. LTD.

Former Name :

M.O.I. YEAST INTERNATIONAL PTE LTD DATE OF CHANGE : 15/06/2005

Business Address:

5 INTERNATIONAL BUSINESS PARK #05-00

Town:

SINGAPORE

Postcode:

609914

Country:

Singapore

Telephone:

6779 6637

ROC Number:

200104019W

 

 

PREVIOUS IDENTIFICATION

 

M.O.I. YEAST INTERNATIONAL PTE LTD                      DATE OF CHANGE : 15/06/2005

 

 

SUMMARY

 

Legal Form:

Pte Ltd

Date Inc.:

18/06/2001

Summary year :

31/12/2006

All amounts in this report are in :

SGD

Sales:

0

Networth :

-8,140

Capital:

-

Paid-Up Capital:

100,000

Net result :

23,988

Share value:

1

 
 
 
AUDITOR : ROBERT TAN & CO                                             
                                                                      
BASED ON ACRA'S RECORD 
                               NO OF SHARES   CURRENCY                AMOUNT              
ISSUED ORDINARY         500,000           SGD                        500,000.00
PAID-UP ORDINARY           -                  SGD                         500,000.00

 

 

REFERENCES

 

 

Litigation:

No

Company status :

TRADING

Started :

18/06/2001

 

 

PRINCIPAL(S)

 

CHEO SENG JIN

S1070705F

Director

 

 

DIRECTOR(S)

 

CHEO CHONG CHER

S0195085A

Company Secretary

Appointed on :

18/06/2001

 

Street :

39 KING ALBERT PARK KING ALBERT PARK

 

Town:

SINGAPORE

 

Postcode:

598321

 

Country:

Singapore

 

CHEO SENG JIN

S1070705F

Director

Appointed on :

05/07/2005

 

Street :

12 CHILTERN DRIVE BRADDELL HEIGHTS ESTATE

 

Town:

SINGAPORE

 

Postcode:

359729

 

Country:

Singapore

 

CHEO TONG CHOON, DR

S1281598J

Director

Appointed on :

18/06/2001

 

Street :

33 BERRIMA ROAD DUNEARN ESTATE

 

Town:

SINGAPORE

 

Postcode:

299913

 

Country:

Singapore

 

 

 

ACTIVITY(IES)

 

Activity Code:

9460

FOOD PRODUCTS

Activity Code:

24270

YEAST

 
 
BASED ON ACRA'S RECORD 
1) MANUFACTURE OF FOOD PRODUCTS (EXCEPT FOOD CHEMICALS AND ADDITIVES);
   MARKETING OF YEAST AND OTHER FOOD PRODUCTS                         
2) OTHER SUPPORT ACTIVITIES;                                          
   MARKETING OF FOOD PRODUCTS

 

 

SHAREHOLDERS(S)

 

NGO CHEW HONG CORPORATION PTE LTD

500,000

Company

 

Street :

231 PANDAN LOOP

Town:

SINGAPORE

Postcode:

128418

Country:

Singapore

 

 

HOLDING COMPANY

 

NGO CHEW HONG CORPORATION PTE LTD

199303486H

100%

 

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

AVERAGE

Liquidity :

LACKING

Payments :

UNKNOWN

Trend :

LEVEL

Financial Situation:

BAD

 

 

 

FINANCIAL ELEMENTS

 

 

Audit Qualification:

GOING CONCERN QUALIFICATION

GOING CONCERN QUALIFICATION

 

Date Account Lodged:

17/07/2007

 

 

Balance Sheet Date:

31/12/2006

31/12/2005

 

Number of weeks:

52

52

 

Consolidation Code:

COMPANY

COMPANY

 

 

--- ASSETS

 

Tangible Fixed Assets:

12,766

15,957

 

Total Fixed Assets:

12,766

15,957

 

Receivables:

8,808

379,260

 

Cash,Banks, Securitis:

39,793

70,076

 

Other current assets:

118,739

1,154,369

 

Total Current Assets:

167,340

1,603,705

 

TOTAL ASSETS:

180,106

1,619,662

 

--- LIABILITIES

 

 

 

Equity capital:

100,000

100,000

 

Profit & lost Account:

-108,140

-132,128

 

Total Equity:

-8,140

-32,128

 

Trade Creditors:

16,341

1,406,174

 

Other Short term Liab.:

164,275

208,584

 

Total short term Liab.:

188,246

1,651,790

 

Prepay. & Def. charges:

7,630

37,032

 

TOTAL LIABILITIES:

188,246

1,651,790

 

--- PROFIT & LOSS ACCOUNT

 

 

 

Net Sales

0

24,342,813

 

Gross Profit:

0

257,521

 

NET RESULT BEFORE TAX:

23,988

-7,781

 

Tax :

0

0

 

Net income/loss year:

23,988

-7,781

 

Interest Paid:

0

2,765

 

Depreciation:

3,191

1,540

 

Purchases,Sces & Other Goods:

0

24,085,292

 

RATIOS

 

Date Account Lodged:

31/12/2006

31/12/2005

 

Net result / Turnover(%):

Infinity

-0

 

Fin. Charges / Turnover(%):

-

0

 

Net Margin(%):

-

-0.03

 

Return on Equity(%):

-294.69

24.22

 

Return on Assets(%):

13.32

-0.48

 

Net Working capital:

-20906

-48085

 

Cash Ratio:

0.21

0.04

 

Quick Ratio:

0.26

0.27

 

Current ratio:

0.89

0.97

 

Receivables Turnover:

-

5.61

 

Leverage Ratio:

-23.13

-51.41

 

  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)

  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

 

AUDITOR'S NOTE:                                                       
WITHOUT QUALIFYING OUR OPINION, WE DRAW ATTENTION TO NOTE 2 TO THE FINANCIAL STATEMENTS. THE COMPANY RECORDED A PROFIT OF $23,988 DURING  THE YEAR ENDED 31 DECEMBER 2006, AS OF THAT DATE, THE COMPANY'S CURRENT LIABILITIES EXCEEDED ITS CURRENT ASSETS BY$20,906 AND ITS TOTAL LIABILITIES EXCEEDED ITS TOTAL ASSETS BY $8,140. THE FINANCIAL   STATEMENTS, HOWEVER, HAVE BEEN PREPARED ON THE NORMAL GOING CONCERN   
BASIS ON THE ASSUMPTION THAT FINANCIAL SUPPORT FROM THE RELEATED  COMPANIES WILL CONTINUE TO BE AVAILABLE.
 
THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE LIMITED IN VIEW  OF THE FOLLOWING:                                                     
                                                                      
NET WORTH:                                                            
THE BALANCE SHEET WAS CONSIDERED INADEQUATE WITH NEGATIVE NET WORTH NARROWING BY 74.66% FROM S$32,128 IN FY 2005 TO S$8,140 IN             FY 2006. THIS WAS DUE TO LOWER ACCUMULATED LOSSES OF S$108,140         (2005: S$-132,128); NARROWING BY 18.16% FROM THE PRIOR FINANCIAL       YEAR.
 
LEVERAGE:                                                             
IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER SHORT TERM    LIABILITIES WHICH MADE UP 87.27% (2005: 12.63%) OF THE TOTAL CURRENT LIABILITIES   AND AMOUNTED TO S$164,275 (2005: S$208,584). THE BREAKDOWN WAS AS FOLLOWS:                                                           
*AMOUNT DUE TO HOLDING COMPANY - 2006: NIL (2005: S$90,933)           
*OTHER CREDITORS - 2006: S$164,275 (2005: S$117,651)                  
                                                                      
IN ALL, LEVERAGE RATIO WAS SIGNIFICANT AT -23.13 TIMES (2005: -51.41 TIMES) DUE TO THE NEGATIVE NET WORTH.                                 
                                                                      
LIQUIDITY:                                                            
IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS WEAK AS SEEN FROM        THE NET WORKING CAPITAL DEFICIT AND LOW LIQUIDITY RATIOS. BOTH CURRENT AND QUICK RATIOS WERE LACKING AT 0.89 TIMES (2005: 0.97 TIMES) AND O.26 TIMES    (2005: 0.27 TIMES) RESPECTIVELY.                                      
                                                                      
NET WORKING CAPITAL DEFICIT NARROWED BY 56.52% FROM S$48,085 IN FY 2005 TO S$20,906.                                                  
                                                                      
PROFITABILITY:                                                        
THERE WAS NO REVENUE GENERATED IN FY 2006 BECAUSE THE COMPANY DID NOT  TRADE DURING THE YEAR. REVENUE GENERATED IN FY 2005 WAS REGISTERED AT S$24,342,813. THERE WAS A NET GAIN OF S$23,988 (2005: S$-7,781),       RISING BY 4.08 TIMES FROM THE PRIOR FINANCIAL YEAR. THE GAIN ARISES    FROM EXHANGE GAIN OF S$31,147 (2005: S$12,263).                       
                                                                      
HENCE, NET MARGIN WAS NIL (2005: -0.03%).
                                                                      
DEBT SERVICING:                                                       
DEBT SERVICING PROBLEMS MIGHT BE EXPECTED WITH THE NEGATIVE NET WORTH. IN ADDITION, THE SUBJECT HAS LOW LIQUIDITY. UNLESS THE COMPANY TOOK IN CERTAIN COST-SAVING MEASURES, IT MIGHT CONTINUE TO EXPERIENCE A NET LOSS POSITION.                                                        
                                                                      
THE AVERAGE COLLECTION PERIOD WAS 6 DAYS IN FY 2005.                  
                                                                      
NOTES TO THE FINANCIAL STATEMENTS:
                                                                      
GOING CONCERN                                                         
THE COMPANY RECORDED A PROFIT OF $23,988 DURING THE EYAR ENDED 31      DECEMBER 2006, AS OF THAT DATE, THE COMPANY'S CURRENT LIABILITIES      EXCEEDED ITS CURRENT ASSETS BY $20,906 AND ITS TOTAL LIABILITIES EXCEEDED ITS TOTAL ASSETS BY $8,140. THE FINANCIAL STATEMENTS, HOWEVER HAVE BEEN PREPARED ON THE NORMAL GOING CONCERN BASIS ON THE ASSUMPTION THAT FINANCIAL SUPPORT FROM THE RELATED COMPANISE WILL CONTINUE TO BE  AVAILABLE. THE FINANCIAL STATEMENTS DO NOT INCLUDE ANY ADJUSTMENTS     RELATING TO THE RECOVERABILITY AND CLASSIFICATION OF RECORDED ASSET AMOUNTS OR TO AMOUNTS AND CLASSFICAITION OF LIABILITIES THAT MAY BE   mNECESSARY IF THE COMPANY IS UNABLE TO CONTINUE AS A GOING CONCERN.    
   

                                                                   
BANK BALANCES                                                         
INCLUDED IN BANK BALANCES IS AN AMOUNT IF $27,794 (2005: $56,194) DENOMINATED IN US DOLLARS.

 

 

BACKGROUND/OPERATION

 

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 18/06/2001 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "M.O.I. YEAST INTERNATIONAL PTE LTD".                                         
                                                                      
SUBSEQUENTLY ON 15/06/2005, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "MEWAH COMMODITIES PTE. LTD.".                                     
                                                                      
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF     500,000 SHARES, OF A VALUE OF S$500,000.
 
PRINCIPAL ACTIVITIES:                                                 
SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY    
AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:        
1) MANUFACTURE OF FOOD PRODUCTS (EXCEPT FOOD CHEMICALS AND ADDITIVES);
   MARKETING OF YEAST AND OTHER FOOD PRODUCTS
2) OTHER SUPPORT ACTIVITIES;                                          
   MARKETING OF FOOD PRODUCTS                                         
                                                                      
DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL       
ACTIVITIES ARE TRADING IN EDIBLE OIL. THE COMPANY, HOWEVER, DID NOT
TRADE DURING THE YEAR.                                                
                                                                      
NO INFORMATION CAN BE GATHERED FROM THE RESEARCH DONE.                
                                                                      
FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS GATHERED:                                                             
                                                                      
WE COULD NOT LOCATE THE SUBJECT'S CONTACT DETAILS FROM LOCAL           DIRECTORY. AS SUCH, WE CALLED ITS SISTER'S COMPANY, "MEWAH OILS AND    FATS PTE LTD" AT 67796637.
                                                                      
THE SUBJECT PERSONNEL OF "MEWAH OILS AND FATS PTE LTD" MENTIONED THAT 
WE CAN USE THE SAME CONTACT NUMBER, 67796637 TO CONTACT THE SUBJECT.  
BOTH ARE LOACTED IN THE SAME ADDRESS.
 
ACTIVITIES:                                                           
* TRADING INDUSTRY                                                    
                                                                      
THE SUBJECT DOES NOT HAVE A CENTRAL FAX NUMBER.
 
FURTHERMORE, SUBJECT PERSONNEL WAS NOT ABLE TO GIVE US MUCH          
INFORMATION ABOUT THE COMPANY.                                        
                                                                      
AS SUCH, NO OTHER TRADE INFORMATION WAS AVAILABLE 
THE COMPANY IS A WHOLLY OWNED SUBSIDIARY OF NGO CHEW HONG (HOLDINGS)  
PTE LTD, INCORPORATED IN SINGAPORE, WHICH IS ALSO THE ULTIMATE HOLDING
COMPANY.                                                              
                                                                      

REGISTERED AND BUSINESS ADDRESS:
5 INTERNATIONAL BUSINESS PARK                                         
#05-00                                                                
SINGAPORE 609914                                                      
DATE OF CHANGE OF ADDRESS: 16/03/2007                                 
- PROPERTY RECORD WAS NOT AVAILABLE
                                                                      
WEBSITE:                                                              
http://www.mewahgroup.com                                             
                                                                      
EMAIL:
mewahgroup@ncheo.com

 

 

MANAGEMENT

 

THE DIRECTORS AT THE TIME OF THIS REPORT ARE:                         
                                                                      
1) CHEO SENG JIN, A SINGAPOREAN                                       
   - HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:           
     NGO CHEW HONG EDIBLE OIL PTE. LTD.
     NGO CHEW HONG (HOLDINGS) PTE. LTD.                               
     NGO CHEW HONG INVESTMENT PL                                      
     MEWAH OILS & FATS PTE LTD                                        
     SABER PRECISION ENGINEERING PL                                   
     NOVORA PTE LTD
     LEGATEE PACIFIC PTE LTD                                          
     NATURE'S TIMBER PTE. LTD.                                        
                                                                      
2) CHEO TONG CHOON, DR, A SINGAPOREAN                                 
   - HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:
     NGO CHEW HONG (HOLDINGS) PTE. LTD.                               
     MEWAH OILS & FATS 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.

 

 
 

MANUFACTURING SECTOR

 

PAST PERFORMANCE

 

THE MANUFACTURING SECTOR FELL BY 5.2% IN 2Q 2008, IN CONTRAST TO THE 13.0% GROWTH IN 1Q 2008. IT WAS BOOSTED BY THE BIOMEDICAL MANUFACTURING CLUSTER WHICH EXPANDED 49.0%.

 

THE DECLINE WAS MAINLY DRIVEN BY THE BIOMEDICAL MANUFACTURING CLUSTER WHICH FELL SIGNIFICANTLY BY 28.0%. THIS WAS LARGELY DUE TO A 31% DECLINE IN PHARMACEUTICALS OUTPUT, AS LOCAL PHARMACEUTICAL COMPANIES SWITCHED THEIR PRODUCT MIX TO PHARMACEUTICAL INGREDIENTS WITH LOWER VALUES COMPARED TO 2Q 2007.

 

THE TRANSPORT ENGINEERING CLUSTER ROSE BY 10.0% AS THE MARINE AND OFFSHORE ENGINEERING CLUSTER MAINTAINED ITS STRONG PERFORMANCE, RISING BY 19.0% IN 2Q 2008.

 

OTHER CLUSTERS REGISTERED MIXED PERFORMANCE. THE CHEMICALS CLUSTER ROSE MARGINALLY BY 1.2% WHILE THE PRECISION ENGINEERING CLUSTER FELL 1.7%. WITH THE IMPACT OF WEAKENING GLOBAL DEMAND, THE ELECTRONICS CLUSTER FELL TO 0.2% GROWTH.

 

NEWS

 

FACTORY OUTPUT DECLINES FOR FIRST TIME IN 3 MONTHS

 

THE ONE ECONOMIC INDICATOR HERE THAT HAS PROVED RESILIENT HAS FINALLY GIVEN IN TO THE MOUNTING FINANCIAL PRESSURE.

 

THE MONTHLY PURCHASING MANAGER’S INDEX (PMI), WHICH POINTS TO UPCOMING FACTORY OUTPUT, FELL FROM 50.6 IN AUGUST TO 49.5 LAST MONTH.

 

ITS 1.1 POINT FALL WAS THE FIRST CONTRACTION IN THREE MONTHS AND THE LARGEST DECLINE RECORDED SINCE THE BEGINNING OF THE YEAR.

 

A READING BELOW 50 INDICATES A CONTRACTION, WHILE A READING ABOVE 50 INDICATES AN EXPANSION.

 

ECONOMISTS ARE NOT SURPRISED THE FIGURES HAS FINALLY COME DOWN. THEY BELIEVED THAT THE PMI HAS BEEN OUT OF SYNC WITH THE ECONOMY IN RECENT MONTHS WITH ITS POSITIVE READINGS – JULY’S READING WAS 51.6 – AMID A GLOBAL DOWNTURN.

 

CITIGROUP’S MR KIT WEI ZHENG SAID THE FIGURES “SUPPORTED THE BEARISH VIEW OF THE ECONOMY” AND EXPORTS ARE LIKELY TO CONTINUE TO CONTRACT UNTIL THE FIRST HALF OF NEXT YEAR.

 

MR DAVID COHEN, DIRECTOR OF ASIAN FORECASTING AT ACTION ECONOMICS, SAID: “THIS WAS MORE OR LESS WITHIN EXPECTATIONS AS IT IS COMING AGAINST THE BACKDROP OF THE GENERAL DETERIORATION SCENE.

 

“THERE IS A GROWING SENSE THAT ECONOMIES AROUND THE WORLD ARE FINALLY SHOWING

SOME SORT OF A DRAG FROM THE FINANCIAL TURMOIL OF THE PAST YEAR.

 

KEY MANUFACTURING INDICATORS IN THE UNITED STATES AND JAPAN HAVE SHOWN LARGER THAN EXPECTED CONTRACTIONS RECENTLY.

 

THE UNITED STATES’ MANUFACTURING INDEX PLUMMETED TO 43.5 FOR SEPTEMBER, ITS LOWEST LEVEL SINCE OCTOBER 2001.

 

THE QUARTERLY TANKAN SURVEY OF MANUFACTURERS BY THE BANK OF JAPAN ALSO SHOWED

SENTIMENT AMONG LARGE MANUFACTURERS TO BE AT ITS LOWEST IN FIVE YEARS.

 

MS JANICE ONG, EXECUTIVE DIRECTOR OF THE SINGAPORE INSTITUTE OF PURCHASING & MATERIALS MANAGEMENT (SIPMM), WHICH PUBLISHES THE PMI, ATTRIBUTED THE FALL TO WEAK LOCAL DEMAND AND OVERSEAS DEMAND.

THE NEW ORDERS INDEX FELL TO 49.8, A 0.6 POINT DROP FROM AUGUST AFTER A THREE-MONTH EXPANSION, AND THE NEW EXPORT ORDERS INDEX GREW BY 0.7 FROM AUGUST BUT WAS STILL IN CONTRACTION WITH A 48.9 READING.

 

THE EMPLOYMENT INDEX ALSO SENT WORRYING SIGNALS BY CONTRACTING FOR THE 10TH STRAIGHT MONTH. IT LOST ANOTHER 2.2 POINTS TO HIT 46.4 IN SEPTEMBER.

 

“WE ARE LIKELY TO SEE SOFTENING IN THE JOB MARKET, WHICH WOULD TRANSLATE TO SOME JOB LOSSES. BUT SINGAPORE HAS A SAFETY NET OF FOREIGN WORKERS, SO THE JOB THREAT WILL NOT BE IMMEDIATE,” SAID MR COHEN.

 

THE ELECTRONICS SECTOR EMPLOYMENT INDEX CONTRACTED FOR ITS THIRD CONSECUTIVE MONTH, TO 43.4.

 

OUTLOOK

 

A WEIGHTED 13.0% OF THE MANUFACTURING SECTOR FORECASTS IMPROVED BUSINESS CONDITIONS FOR THE COMING MONTHS WHILE A WEIGHTED 12.0% PREDICTS DETERIORATION. THIS LEADS TO A NET WEIGHTED BALANCE OF 1.0% OF MANUFACTURERS FORECASTING BETTER BUSINESS CONDITIONS IN 2NF HALF OF 2008 COMPARED TO 2Q 2008. A WEIGHTED 75.0% OF MANUFACTURERS EXPECT THE BUSINESS CLIMATE TO REMAIN STABLE, RESULTING IN A TOTAL WEIGHTED 88.0% OF MANUFACTURERS EXPECTING BETTER OR STABLE BUSINESS CONDITIONS IN THE COMING MONTHS.

 

BASED ON THE NET WEIGHTED BASIS, THE GENERAL MANUFACTURING INDUSTRIES CLUSTER

IS THE MOST OPTIMISTIC WITH A NET WEIGHTED BALANCE OF 11.0% OF FIRMS EXPECTING BETTER BUSINESS CONDITIONS IN THE MONTHS AHEAD.

 

IN CONTRAST, THE CHEMICALS CLUSTER HAS THE WEAKEST OUTLOOK WITH A NET WEIGHTED BALANCE OF 23.0% OF FIRMS PREDICTING A LESS FAVOURABLE BUSINESS ENVIRONMENT. THIS IS ATTRIBUTED TO WEAKER PROFIT EXPECTATIONS ON THE BACK OF HIGH MATERIAL COSTS.

 

IN THE ELECTRONICS CLUSTER, A NET WEIGHTED BALANCE OF 1.0% OF FIRMS PREDICTS A LESS FAVOURABLE BUSINESS CLIMATE.

 

IN THE BIOMEDICAL MANUFACTURING CLUSTER, A NET WEIGHTED BALANCE OF 4.0% OF FIRMS FORECASTS A BETTER BUSINESS CLIMATE FOR THE COMING MONTHS.

 

IN THE PRECISION ENGINEERING CLUSTER, A NET WEIGHTED BALANCE OF 2.0% OF FIRMS FORECASTS BETTER BUSINESS PROSPECT.

 

FOR THE TRANSPORT ENGINEERING CLUSTER, A NET WEIGHTED BALANCE OF 8.0% OF FIRMS FORECASTS POSITIVE SENTIMENTS IN THE MONTHS AHEAD.

 

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

                EDB SINGAPORE

                THE STRAITS TIMES

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.95

UK Pound

1

Rs.79.56

Euro

1

Rs.63.65

 

 

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