MIRA INFORM REPORT

Report Date :

08.04.2011

IDENTIFICATION DETAILS

Name :	VICTORY MERCANTILE CORPORATION PTE. LTD.
Registered Office :	150 South Bridge Road #06-07 Fook Hai Building, Singapore 058727
Country :	Singapore
Date of Incorporation :	21.10.2004
Com. Reg. No.:	200413646D
Legal Form :	Exempt Pte Ltd
Line of Business :	exporter of petro-chemicals, solvents, industrial raw materials and other chemicals

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	SGD 592,000
Status :	Moderate
Payment Behaviour :	Regular
Litigation :	Exists

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Singapore	a1	a1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Subject Company

VICTORY MERCANTILE CORPORATION PTE. LTD.

Line Of Business 

 
EXPORTER OF PETRO-CHEMICALS, SOLVENTS, INDUSTRIAL RAW MATERIALS AND OTHER CHEMICALS

Parent Company

-

Financial Elements

Sales -

Networth -

Paid-Up Capital : S$3,947,826

Net result : -

Net Margin(%) : -

Return on Equity(%) : -

Leverage Ratio : -

Rating

Credit Opinion : CREDIT LINE TO A MAXIMUM OF SGD 592,000 CAN BE CONSIDERED

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 4174/6538 8110
Fax:	6538 7998
ROC Number:	200413646D
Easy Number company:	00000405866863

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:	3,947,826
Employees:	5
Net result :
Share value:

AUDITOR

 
STRATEGIC ASSURANCE LLP 
  
BASED ON ACRA'S RECORD
 
  NO OF SHARES  CURRENCY  AMOUNT 
ISSUED ORDINARY  3,947,826  SGD  3,947,826.00
PAID-UP ORDINARY   -  SGD  3,947,826.00

REFERENCES

Credit Opinion:

CREDIT LINE TO A MAXIMUM OF SGD 592,000 CAN BE CONSIDERED

Litigation:	Yes
Company status :	TRADING
Started :	21/10/2004

PRINCIPAL(S)

HITEN A KAMDAR

S1770858I

Managing Director

DIRECTOR(S)

KAMLESH S/O ANANTRAI KAMDAR		Company Secretary
Appointed on :	21/10/2004
Street :	160 HAIG ROAD #06-01 HAIG COURT
Postcode:	438795
Country:	Singapore
Identification number:	S1495874F

ANANTRAI HARILAL KAMDAR		Director
Appointed on :	21/10/2004
Street :	160 HAIG ROAD #06-01 HAIG COURT
Postcode:	438795
Country:	Singapore
Identification number:	S1039546A

KAMLESH S/O ANANTRAI KAMDAR		Director
Appointed on :	21/10/2004
Street :	160 HAIG ROAD #06-01 HAIG COURT
Postcode:	438795
Country:	Singapore
Identification number:	S1495874F

HITEN A KAMDAR		Director
Appointed on :	21/10/2004
Street :	160 HAIG ROAD #06-01 HAIG COURT
Postcode:	438795
Country:	Singapore
Identification number:	S1770858I

HITEN A KAMDAR		Managing Director
Appointed on :	21/10/2004
Street :	160 HAIG ROAD #06-01 HAIG COURT
Postcode:	438795
Country:	Singapore
Identification number:	S1770858I

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 BUSINESS SUPPORT SERVICES ACTIVITIES (EG ADMINISTRATION OF 
 LOYALTY PROGRAMMES);  
 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: ALL MONIES OWING CHARGEE(S): UCO BANK

	AVAILABLE
Date:	07/07/2010
Amount:	0
Comments :	CHARGE NO: C201005742, 05741, 05740 AMOUNT SECURED: ALL MONIES OWING CHARGEE(S): ICICI BANK LIMITED

BANKERS

UCO BANK

ICICI BANK LIMITED

SHAREHOLDERS(S)

ANANTRAI HARILAL KAMDAR

1,177,599

Private Person

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

Identification number: S1039546A

KAMLESH S/O ANANTRAI KAMDAR

1,177,599

Private Person

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

Identification number: S1495874F

HITEN A KAMDAR

1,177,599

Private Person

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

Identification number: S1770858I

KAMDAR DISHAN ANANTRAI

415,029

Private Person

Street :	160 HAIG ROAD #06-02 HAIG COURT
Town:	SINGAPORE
Postcode:	438795
Country:	Singapore

PAYMENT HISTORY AND EXPERIENCES

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

LITIGATION(S)

Type Of Case:	District Court - W/S
Case Number:	DCS01658/2008
Defendant	VICTORY MERCANTILE CORPORATION PTE. LTD.	ROC # : 200413646D 200413646D
	P: S.A. BROTHERS

FINANCIAL COMMENTS

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.". 
 
AS AT 06/10/2010, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF
3,947,826 SHARES OF A VALUE OF S$3,947,826. 
  
PRINCIPAL ACTIVITIES: 
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY 
AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:
1) OTHER BUSINESS SUPPORT SERVICES ACTIVITIES (EG ADMINISTRATION OF 
 LOYALTY PROGRAMMES); 
 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 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 IS A MEMBER OF THE FOLLOWING ENTITIES: 
* SINGAPORE INDIAN CHAMBER OF COMMERCE AND INDUSTRY 
* SINGAPORE BUSINESS FEDERATION
 
FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS 
GATHERED:  
 
SUBJECT CONFIRMED ITS BUSINESS ADDRESS, EMAIL, FAX NUMBER AND 
PRINCIPAL ACTIVIITES. SUBJECT FURTHER MENTIONED THEY DO NOT HAVE A
WEBSITE.  
 
NO OTHER TRADE INFORMATION IS AVAILABLE 
 
REGISTERED AND BUSINESS ADDRESS:
150 SOUTH BRIDGE ROAD 
#06-07 
FOOK HAI BUILDING 
SINGAPORE 058727  
DATE OF CHANGE OF ADDRESS: 21/10/2004
- OWNED BY: ANANTRAI H KAMDAR, KAMLESH ANANTRAI K, HITEN A KAMDAR 
 
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: OWNS 1 
ANNUAL VALUE: S$10,300  
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: OWNS 1
ANNUAL VALUE: S$10,300 
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: OWNS 2 
ANNUAL VALUE: S$10,300 (150 SOUTH BRIDGE ROAD #06-07) 
CO-OWNER (S): ANANTRAI HARILAL KAMDAR 
 KAMLESH S/O ANANTRAI KANDAR KAMDAR
 
ANNUAL VALUE: S$30,000 (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.

Singapore’s Country Rating 2010

Investment Grade

THE SINGAPORE ECONOMY WAS SIGNIFICANTLY AFFECTED BY THE CRISIS DUE TO THE CONTRACTION OF EXPORTS, WHICH REPRESENT 210% OF GDP. SALES ABROAD OF MANUFACTURED PRODUCTS (ELECTRONICS, ENGINEERING, PHARMACEUTICALS, PETROCHEMICALS) AND SERVICES (FINANCIAL SERVICES, TOURISM, TRANSPORT) WERE AFFECTED BY THE WEAK PERFORMANCE OF THE MAIN TRADING PARTNERS (MALAYSIA, UNITED STATES, CHINA, JAPAN). WITH THE ECONOMY'S SLIDE INTO RECESSION, THE CENTRAL BANK REDUCED INTEREST RATES SEVERAL TIMES AND A STIMULUS PROGRAMME REPRESENTING 8% OF GDP WAS IMPLEMENTED IN JANUARY LAST YEAR. ALTHOUGH INCREASED PUBLIC SPENDING ON INFRASTRUCTURE, TRANSPORT, HEALTH AND EDUCATION ENABLED THE AUTHORITIES TO LIMIT THE CONTRACTION OF INVESTMENT, THAT DID NOT SUFFICE TO OFFSET THE DROP IN PRIVATE INVESTMENT. THE GOVERNMENT MOREOVER GRANTED DEFAULT GUARANTEES OF UP TO 80% ON NEW LOANS. AND HOUSEHOLD CONSUMPTION WAS SUPPORTED BY A REDUCTION OF INCOME TAX AND MEASURES TO FOSTER EMPLOYMENT. 

IN Q1 2010, GROWTH REBOUNDED SIGNIFICANTLY (15.5% Y/Y). FOR THE ENTIRE YEAR, GROWTH IS EXPECTED TO REMAIN HIGH (8.9%) THANKS TO THE POSITIVE IMPACT ON DOMESTIC DEMAND OF THESE EXPANSIONARY MONETARY AND FISCAL POLICIES AND THE GRADUAL RECOVERY OF THE WORLD ECONOMY. INVESTMENT, CONSUMPTION, AND NET EXPORTS ARE AGAIN EXPECTED TO CONTRIBUTE POSITIVELY TO GROWTH. ON THE SUPPLY SIDE, THE CONSTRUCTION SECTOR WILL BENEFIT AGAIN THIS YEAR FROM INCREASED PUBLIC SPENDING WHILE ELECTRONICS, PHARMACEUTICALS, PETROCHEMICALS, FINANCIAL SERVICES, AND TOURISM WILL GRADUALLY RECOVER. THE COFACE PAYMENT MONITORING RECORDS ARE THUS EXPECTED TO REFLECT THIS FAVOURABLE TREND. SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA UNDERPINNED BY AN EFFECTIVE LEGAL SYSTEM THAT FACILITATES CLAIM COLLECTION AND A HIGH LEVEL OF FINANCIAL TRANSPARENCY.

STRONG FINANCIAL POSITION

DESPITE IMPLEMENTATION OF A BROAD STIMULUS PROGRAMME, THE COUNTRY CONTINUED TO RUN A SLIGHT FISCAL SURPLUS IN 2009, WHICH IS EXPECTED TO GROW IN 2010. PUBLIC SECTOR FINANCES HAVE THUS REMAINED SOLID.

DESPITE THE CONTRACTION OF THE CURRENT ACCOUNT SURPLUS, EXTERNAL ACCOUNTS ALSO REMAINED LARGELY IN SURPLUS LAST YEAR. IN 2010, THE CURRENT ACCOUNT SURPLUS WILL LIKELY REMAIN STABLE AS RESULT OF THE MORE RAPID RECOVERY OF IMPORTS COMPARED TO EXPORTS, ASSOCIATED WITH THE RISE OF RAW MATERIAL PRICES AND THE REBOUND OF DOMESTIC DEMAND. BESIDES, THE VOLATILITY OF PORTFOLIO INVESTMENT FLOWS THAT DEVELOPED AFTER THE LEHMAN BROTHERS BANKRUPTCY EASED IN 2009. IN 2010, THE HIGH LEVEL OF FOREIGN EXCHANGE RESERVES IS EXPECTED TO CONTINUE TO ENDOW THE COUNTRY WITH GOOD CAPACITY TO WITHSTAND SUDDEN CAPITAL.

MOREOVER, DESPITE THE INTERNATIONAL FINANCIAL TURMOIL AND THE EXPOSURE OF SOME BANKS TO SUBPRIMES AND LEHMAN BROTHERS, THE BANKING SYSTEM IS STILL SOLID THANKS TO SATISFACTORY RISK MANAGEMENT, EFFECTIVE OVERSIGHT, AND HIGH SOLVENCY AND LIQUIDITY RATIOS. 

ASSETS

· VERY HIGH QUALITY-COMPETITIVENESS

· DEVELOPMENT OF HIGH VALUE-ADDED SECTORS (CHEMICALS, PHARMACEUTICALS, FINANCE)

· STRONG FDI INFLOWS THANKS TO AN ADVANTAGEOUS TAX REGIME, POLITICAL STABILITY AND AN EXCELLENT BUSINESS ENVIRONMENT

· MAJOR EXPORTER OF CAPITAL IN ASIA VIA THE PUBLIC HOLDING COMPANY TEMASEK

WEAKNESSES

• ECONOMY DEPENDENT ON FOREIGN DEMAND
• SHORTAGES OF SKILLED LABOUR
• AGEING POPULATION
• LATENT SOCIAL TENSIONS IN A CONTEXT OF INCREASING INEQUALITY AND GROWING DURABLE UNEMPLOYMENT AMONG THE LEAST SKILLED

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 19.0 IN 2Q 2010, FOLLOWING THE 17.0% GAIN IN 1Q 2010. IT IS ATTRIBUTED TO IMPROVEMENTS IN GLOBAL TRADE FLOWS.

DOMESTIC WHOLESALE TRADE INDEX

THE DOMESTIC WHOLESALE TRADE (SEASONALLY ADJUSTED) DECLINED BY 1.4% IN 2Q 2010 OVER 1Q 2010, WITH LOWER SALES IN CHEMICALS AND CHEMICAL PRODUCTS, INDUSTRIAL AND CONSTRUCTION MACHINERY. EXCLUDING PETROLEUM, OVERALL DOMESTIC SALES FELL BY 3.4%.

COMPARED TO THE SAME PERIOD A YEAR AGO, DOMESTIC WHOLESALE TRADE IN 2Q 2010 ROSE BY 15.1%, WITH HIGHER SALES REPORTED BY ALL SECTORS EXCEPT INDUSTRIAL AND CONSTRUCTION MACHINERY SECTOR. EXCLUDING PETROLEUM, DOMESTIC WHOLESALE TRADE GREW BY 20.0%.

AFTER REMOVING PRICE EFFECT, DOMESTIC WHOLESALE TRADE VOLUME SHOWED A RELATIVELY SMALLER YEAR-0N-YEAR INCREASE OF 1.3%. EXCLUDING PETROLEUM, DOMESTIC WHOLESALE TRADE GREW BY 15.4%.

MOST SECTORS REGISTERED QUARTER-ONP-QUARTER DECLINES IN DOMESTIC WHOLESALE TRADE AFTER SEASONAL ADJUSTMENT.

CHEMICALS AND CHEMICAL PRODUCTS AND INDUSTRIAL AND CONSTRUCTION MACHINERY SECTORS RECORDED DECREASES OF 14.0% AND 9.0% RESPECTIVELY. PETROLEUM AND PETROLEUM PRODUCTS, ELECTRONIC COMPONENTS, FOOD, BEVERAGES AND TOBACCO AND GENERAL WHOLESALE TRADE SECTORS ALSO RECORDED DECLINES OF BETWEEN 1.8% AND 5.0% IN THEIR DOMESTIC SALES.

ON THE OTHER HAND, TIMBER, PAINTS AND CONSTRUCTION MATERIALS AND TELECOMMUNICATIONS AND COMPUTERS SECTORS, RECORDED POSITIVE QUARTER-ON-QUARTER GROWTHS OF 3.7% AND 0.9% RESPECTIVELY.

ALL WHOLESALE SECTORS, WITH THE EXCEPTION OF INDUSTRIAL AND CONSTRUCTION MACHINERY, REPORTED YEAR-ON-YEAR GROWTHS IN DOMESTIC WHOLESALE TRADE IN 2Q 2010.

GENERAL WHOLESALE TRADE SECTOR REGISTERED A STRONG POSITIVE GROWTH OF 63.7% IN ITS DOMESTIC SALES, COMPARED TO 2Q 2009. OTHER SECTORS THAT EXPERIENCED DOUBLE-DIGIT YEAR-ON-YEAR INCREASES IN DOMESTIC WHOLESALE TRADE INCLUDE ELECTRONIC COMPONENTS (25.4%), TELECOMMUNICATIONS AND COMPUTERS (23.0%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (21.3%), CHEMICALS AND CHEMICAL PRODUCTS (19.6%), SHIP CHANDLERS AND BUNKERING (15.9%) AND HOUSEHOLD EQUIPMENT AND FURNITURE (10.4%).

DOMESTIC SALES OF THE INDUSTRIAL AND CONSTRUCTION MACHINERY SECTOR DECLINED SLIGHTLY BY 3.0% COMPARED TO 2Q 2009.

FOREIGN WHOLESALE TRADE INDEX

COMPARED TO 1Q 2010, FOREIGN WHOLESALE TRADE (SEASONALLY ADJUSTED) GREW 3.1% IN 2Q 2010, WITH MOST OF THE WHOLESALE SECTORS REGISTERING HIGHER SALES. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE ROSE BY 4.4% QUARTER-ON-QUARTER.

ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE TRADE GREW BY 28.8%, WITH STRONG GROWTHS IN MOST WHOLESALE SECTORS. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE ROSE BY 18.8%.

AFTER ADJUSTING FOR PRICE CHANGES, FOREIGN WHOLESALE TRADE VOLUME ROSE BY 13.7% YEAR-ON-YEAR. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE VOLUME GREW BY 14.1%.

AFTER SEASONAL ADJUSTMENT, ALL WHOLESALE SECTORS REGISTERED POSITIVE QUARTER-ON-QUARTER GROWTHS IN FOREIGN WHOLESALE TRADE IN 2Q 2010.

TIMBER, PAINT AND CONSTRUCTION MATERIALS AND PETROLEUM AND PETROLEUM PRODUCTS POSTED DOUBLE-DIGIT GROWTHS OF 31.4% AND 12.6% RESPECTIVELY IN FOREIGN WHOLESALE TRADE.

FOREIGN SALES OF HOUSEHOLD EQUIPMENT AND FURNITURE, CHEMICALS AND CHEMICAL PRODUCTS, INDUSTRIAL AND CONSTRUCTION MACHINERY AND FOOD, BEVERAGES AND TOBACCO ALSO ROSE BETWEEN 4.0% AND 8.0%.

FOREIGN SALES OF SHIP CHANDLERS AND BUNKERING SECTOR FELL BY 1.7% OVER 1Q 2010.

OTHER THAN THE FOOD, BEVERAGES AND TOBACCO SECTOR WHICH REGISTERED A MARGINAL DROP OF 2.1%, ALL WHOLESALE SECTORS REGISTERED DOUBLE-DIGIT YEAR-ON-YEAR GROWTHS IN FOREIGN WHOLESALE TRADE.

PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING, CHEMICALS AND CHEMICAL PRODUCTS SECTORS REGISTERED HIGHER FOREIGN SALES OF BETWEEN 23.5% AND 42.3%. AFTER ADJUSTING FOR PRICE CHANGES, FOREIGN WHOLESALE TRADE VOLUME OF PETROLEUM AND PETROLEUM PRODUCTS AND CHEMICALS AND CHEMICAL PRODUCTS AND SHIP CHANDLERS AND BUNKERING ROSE BY A SMALLER 13.3%, 6.3% AND 1.3% RESPECTIVELY.

OTHER SECTORS THAT REPORTED STRONG YEAR-ON-YEAR GROWTHS IN FOREIGN SALES INCLUDED

TIMBER, PAINTS AND CONSTRUCTION MATERIALS (60.0%), INDUSTRIAL AND CONSTRUCTION MACHINERY (35.1%), TRANSPORT EQUIPMENT (30.7%), TELECOMMUNICATIONS AND COMPUTERS (23.1%) AND HOUSEHOLD EQUIPMENT AND FURNITURE (22.2%).

RETAIL SALES

RETAIL SALES VOLUME FELL BY 5.7% IN 2Q 2010, REVERSING THE 1.1% GROWTH REGISTERED IN 1Q 2010. EXCLUDING MOTOR VEHICLE SALES, THE GROWTH WAS LOWER AT 4.8%.

ALTHOUGH WEIGHED DOWN BY THE DECLINE OF MOTOR VEHICLE SALES (-33.0%), OTHER MAJOR RETAIL SEGMENTS, SUCH AS FURNITURE AND HOUSEHOLD EQUIPMENT (11.0%), WEARING APPAREL AND FOOTWEAR (9.9%), WATCHES AND JEWELLERY (7.7%), AND DEPARTMENT STORES (6.2%)

POSTED STRONG GROWTH IN 2Q 2010.

NEWS

TOURISTS BOOST JULY RETAIL SALES

A SURGE IN TOURIST NUMBERS HAS BEEN GOOD NEWS FOR LOCAL SHOP OWNERS AS RETAIL SPENDING BOUNCED BACK IN JULY AFTER A FIVE-MONTH SLUMP.

SHOPPERS SPENT MORE ON SMALLER ITEMS IN JULY, AND CAR SALES, WHILE STILL WEAK, BECAME LESS OF A DRAG ON OVERALL SPENDING.

THE MONTHLY RETAIL SALES INDEX JUMPED 3.2% IN JULY FROM JUNE, ENDING FIVE MONTHS OF DECLINE, IN MONTH-ON-MONTH TERMS, SINCE FEBRUARY. THE MOST RECENT SLIDE, IN JUNE, WAS 0.7%.

COMPARED TO A YEAR EARLIER, THE INDEX SHRANK A SMALLER-THAN-EXPECTED 1.2% IN JULY, AFTER JUNE’S 5.0% DECLINE. A BLOOMBERG NEWS SURVEY OF SEVEN ECONOMISTS HAD FORECAST A 2.7% YEAR-ON-YEAR DECLINE.

SHOPPERS WERE IN A BULLISH MOOD. THEY BOUGHT MORE APPAREL AND FOOTWEAR, MEDICAL GOODS AND TOILETRIES, AND WATCHES AND JEWELLERY, WHICH HELPED OFFSET A FALL IN CAR SALES, SAID THE DEPARTMENT OF STATISTICS, WHICH PUBLISHED THE FIGURES YESTERDAY.

SALES OF CLOTHES AND SHOES ROSE 10.5% YEAR-0N-YEAR, MEDICAL GOODS ROSE 12.3% AND WATCHES AND JEWELLERY 16.9%.

HSBC ECONOMISTS FREDERIC NEUMANN AND KIM SONG YI WROTE IN A REPORT THAT IT IS “LOOKING GOOD ON ORCHARD”.

“FOREIGN VISITORS ARE FUELLING THE BOOM WITH RECORD ARRIVALS RECORDED IN JULY. THESE ARE INCREASINGLY COMING FROM CHINA, AND ARE HELPING TO SUBSTAIN RETAIL SALES IN SINGAPORE AND BEYOND.”

CITIGROUP ECONOMIST KIT WEI ZHENG SAID: “VISITOR ARRIVALS HAVE BEEN GROWING IN THE DOUBLE-DIGITS SINCE THE START OF THIS YEAR AND JULY ARRIVALES CROSSED THE ONE-MILLION MARK FOR THE FIRST TIME.”

STILL, THE OVERALL INDEX STAYED IN DECLINE BECAUSE OF A SMALLER SUPPLY OF CAR CERTIFICATES OF ENTITLEMENT (COEs) WHICH SLOWED DOWN CAR SALES. MOTOR VEHICLE SALES, WHICH MAKE UP A THIRD OF THE INDEX – THE LARGEST PART – FELL 24.8% IN JULY FROM A YEAR EARLIER. THIS WAS LESS THAN JUNE’S 32.3% DECLINE.

STANDARD CHARTERED ECONOMIST ALVIN LIEW SAID: POOR CAR SALES ARE LIKELY TO WEIGH DOWN ON THE HEADLINE RETAIL GROWTH.

“ALTHOUGH THE LATEST DATA SEEM TO SUGGEST THAT THE IMPACT MAY BE WANING, WE NOTE THE SKY-ROCKETING COE PRIES COULD HURT CAR SALES AGAIN IN THE SUBSEQUENT MONTHS.

OUTLOOK

A NET WEIGHTED BALANCE OF 37% OF WHOLESALERS EXPECT POSITIVE BUSINESS SENTIMENTS FOR THE PERIOD ENDING DEC 2010. IN PARTICULAR, THOSE DEALING WITH FOOD AND BEVERAGES, COSMETICS AND TOILETRIES, INDUSTRIAL MACHINERY AND EQUIPMENT, ELECTRONIC COMPONENTS, COMPUTERS AND ACCESSORIES, AND MOTOR VEHICLES.

RETAILERS PREDICT MORE UPBEAT BUSINESS CONDITIONS FOR THE COMING MONTHS. A NET WEIGHTED BALANCE OF 29% OF RETAILERS FORECAST MORE FAVOURABLE BUSINESS PROSPECTS FOR THE PERIOD ENDING DEC 2010. THIS APPLIES TO DEPARTMENT STORES, RETAILERS OF WEARING APPAREL AND JEWELLERY AND WATCHES.

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.44.22
UK Pound	1	Rs.71.97
Euro	1	Rs.63.23

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	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

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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