MIRA INFORM REPORT

 

 

Report Date :           

30.04.2011

 

IDENTIFICATION DETAILS

 

Name :

CROWN EXPORTS (SINGAPORE) PTE LTD

 

 

Formerly Known As :

GBS TRADERS PTE LTD

 

 

Registered Office :

3 Shenton Way #12-09 Shenton House, Singapore 068805

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2005

 

 

Date of Incorporation :

05.08.2000

 

 

Com. Reg. No.:

200006901W

 

 

Legal Form :

Exempt Pte Ltd

 

 

Line of Business :

importers and exporters in general merchandise

 

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 90,000

Status :

Moderate

Payment Behaviour :

Regular

Litigation :

Clear

 

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   

 

CROWN EXPORTS (SINGAPORE) PTE LTD

 

 

Line Of Business

 

IMPORTERS AND EXPORTERS IN GENERAL MERCHANDISE

 

 

Parent Company    

 

-

 

 

Financial Elements

 

                                     FY 2005

                                    COMPANY

Sales                            : S$17,168,011

Networth                                   : S$670,419

Paid-Up Capital                                         : S$600,000

Net result                      : S$24,024

Net Margin(%)               : 0.14%

Return on Equity(%)       : 3.58%

Leverage Ratio               : 3.26% 

 

 

Rating

 

Credit Opinion    : CREDIT LINE TO A MAXIMUM OF SGD 90,000 CAN BE CONSIDERED

 

 

COMPANY IDENTIFICATION

 

Subject Company :

CROWN EXPORTS (SINGAPORE) PTE LTD

Former Name :

GBS TRADERS PTE LTD DATE OF CHANGE OF NAME: 04/07/2001

Business Address:

3 SHENTON WAY #12-09 SHENTON HOUSE

Town:

SINGAPORE

Postcode:

068805

Country:

Singapore

Telephone:

6221 5494

Fax:

6221 4990

ROC Number:

200006901W

Easy Number company:

00004531601248

 

 

PREVIOUS IDENTIFICATION

 

GBS TRADERS PTE LTD DATE OF CHANGE OF NAME: 04/07/2001

 

 

SUMMARY

 

Legal Form:

Exempt Pte Ltd

Date Inc.:

05/08/2000

Summary year :

31/12/2005

All amounts in this report are in :

SGD

Sales:

17,168,011

Networth :

670,419

Capital:

 

Paid-Up Capital:

600,000

Employees:

5

Net result :

24,024

Share value:

1

 
 
 

AUDITOR

 
HAJAMAIDEEN & CO.                                            
                                                                      
BASED ON ACRA'S RECORD
                        
                                              NO OF SHARES      CURRENCY             AMOUNT              
ISSUED ORDINARY                600,000                   SGD                        600,000.00
PAID-UP ORDINARY               -                              SGD                        600,000.00

 

 

REFERENCES

 

Credit Opinion:

CREDIT LINE TO A MAXIMUM OF SGD 90,000 CAN BE CONSIDERED

 

Litigation:

No

Company status :

TRADING

Started :

05/08/2000

 

 

PRINCIPAL(S)

 

CHETAN RASIKLAL SHETH

S2641470I

Director

 

DIRECTOR(S)

 

CHETAN RASIKLAL SHETH

S2641470I

Company Secretary

Appointed on :

07/04/2008

 

Street :

406 BEDOK NORTH AVENUE 3 #24-189

 

Town:

SINGAPORE

 

Postcode:

460406

 

Country:

Singapore

 

 

CHETAN RASIKLAL SHETH

S2641470I

Director

Appointed on :

27/02/2003

 

Street :

406 BEDOK NORTH AVENUE 3 #24-189

 

Town:

SINGAPORE

 

Postcode:

460406

 

Country:

Singapore

 

 

PEER MOHAMED ABDUL WAHAB

S2732927F

Director

Appointed on :

01/10/2001

 

Street :

211 ANG MO KIO AVENUE 3 #03-1428

 

Town:

SINGAPORE

 

Postcode:

560211

 

Country:

Singapore

 

 

SHETH MITAN CHETAN

S8071300B

Director

Appointed on :

10/05/2010

 

Street :

406 BEDOK NORTH AVENUE 3 #24-189

 

Town:

SINGAPORE

 

Postcode:

460406

 

Country:

Singapore

 

 

FORMER DIRECTOR(S)

 

MADURAIYAR HABIB SHAHUL HAMEED MOHAMED ISMAIL

E7386022

 

ABU BAKAR MARICAR S/O MOHAMED NAINA

S1058535Z

 

THAMIM S/O ABDUL KASSIM

S2589697A

 

 

 

ACTIVITY(IES)

 

Activity Code:

19045

SCRAP METALS

Activity Code:

13890

METAL SPECIALTIES

Activity Code:

11760

IMPORTERS And EXPORTERS

 
 
BASED ON ACRA'S RECORD 
1) WHOLESALE OF SCRAP, JUNK AND WASTE DEALERS;                        
   DEALING IN NON-FERROUS METALS & INGOTS                             
2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)

 

 

CHARGES

 

 

 

AVAILABLE

Date:

23/06/2006

Amount:

0

Comments :

 
CHARGE NO: C200604070                                                 
AMOUNT SECURED: ALL MONIES OWING                                      
CHARGEE(S): UNITED OVERSEAS BANK LIMITED

 

 

AVAILABLE

Date:

03/05/2005

Amount:

0

Comments :

 
CHARGE NO: C200502564                                                 
AMOUNT SECURED: ALL MONIES OWING                                      
CHARGEE(S): STANDARD CHARTERED BANK

 

 

AVAILABLE

Date:

25/02/2010

Amount:

0

Comments :

 
CHARGE NO: C201001745                                                 
AMOUNT SECURED: ALL MONIES OWING                                      
CHARGEE(S): STANDARD CHARTERED BANK

 

 

PREMISES/PROPERTY INFORMATIONS

 

 

NO

Date:

29/04/2011

Site Address :

3 SHENTON WAY #12-09 SHENTON HOUSE
068805
Singapore

Annual Value:

15,200

 

 

*              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.

 

 

BANKERS

 

UNITED OVERSEAS BANK LIMITED

STANDARD CHARTERED BANK

 

SHAREHOLDERS(S)

 

PEER MOHAMED ABDUL WAHAB

100,000

Private Person

 

Street :

211 ANG MO KIO AVENUE 3 #03-1428

Town:

SINGAPORE

Postcode:

560211

Country:

Singapore

 

CHETAN RASIKLAL SHETH

400,000

Private Person

 

Street :

406 BEDOK NORTH AVENUE 3 #24-189

Town:

SINGAPORE

Postcode:

460406

Country:

Singapore

 

SHETH MITAN CHETAN

100,000

Private Person

 

Street :

406 BEDOK NORTH AVENUE 3 #24-189

Town:

SINGAPORE

Postcode:

460406

Country:

Singapore

 

 

FORMER SHAREHOLDER(S)

 

MADURAIYAR HABIB SHAHUL HAMEED MOHAMED ISMAIL

200,000

 

 

THAMIM S/O ABDUL KASSIM

50,000

 

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

AVERAGE

Liquidity :

UNKNOWN

Payments :

REGULAR

Trend :

LEVEL

Financial Situation:

UNKNOWN

 

 

 

FINANCIAL ELEMENTS

 

All amounts in this report are in :

SGD

 

Audit Qualification:

UNQUALIFIED (CLEAN) OPINION

UNQUALIFIED (CLEAN) OPINION

 

Date Account Lodged:

 

 

 

Balance Sheet Date:

31/12/2005

31/12/2004

 

Number of weeks:

52

52

 

Consolidation Code:

COMPANY

COMPANY

 

 

ASSETS

 

Intangible Fixed Assets:

0

0

 

Total Fixed Assets:

0

0

 

Receivables:

2,365,238

1,403,282

 

Cash,Banks, Securitis:

449,024

335,218

 

Other current assets:

43,744

46,064

 

Total Current Assets:

2,858,006

1,784,564

 

TOTAL ASSETS:

2,858,006

1,784,564

 

LIABILITIES

 

 

 

Equity capital:

600,000

400,000

 

Profit & lost Account:

70,419

46,395

 

Total Equity:

670,419

446,395

 

Prepay. & Def. charges:

22,445

2,830

 

Due to Bank:

2,162,791

1,332,364

 

Provisions:

2,351

2,975

 

Total short term Liab.:

2,187,587

1,338,169

 

TOTAL LIABILITIES:

2,187,587

1,338,169

 

PROFIT & LOSS ACCOUNT

 

 

 

Net Sales

17,168,011

10,153,594

 

Purchases,Sces & Other Goods:

16,883,739

9,934,940

 

Gross Profit:

284,272

218,654

 

Results of Ord Ops:

199,029

116,248

 

NET RESULT BEFORE TAX:

26,375

20,655

 

Tax :

2,351

2,975

 

Net income/loss year:

24,024

17,680

 

Interest Paid:

172,654

95,593

 

Wages and Salaries:

89,160

87,900

 

Financial Income:

9,153

2,343

 

 

 

RATIOS

 

Date Account Lodged:

31/12/2005

31/12/2004

 

Turnover per employee:

3433602.2

2030718.8

 

Net result / Turnover(%):

0

0

 

Fin. Charges / Turnover(%):

0.01

0.01

 

Net Margin(%):

0.14

0.17

 

Return on Equity(%):

3.58

3.96

 

Return on Assets(%):

0.84

0.99

 

Net Working capital:

670419

446395

 

Cash Ratio:

0.21

0.25

 

Quick Ratio:

1.29

1.3

 

Current ratio:

1.31

1.33

 

Receivables Turnover:

49.6

49.75

 

Leverage Ratio:

3.26

3

 

 
 
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

 

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          
05/08/2000 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER   
ITS NAMESTYLE AS "GBS TRADERS PTE LTD".                               
                                                                                    
SUBSEQUENTLY, ON 04/07/2001, THE COMPANY CHANGED TO ITS PRESENT
NAMESTYLE AS "CROWN EXPORTS (SINGAPORE) PTE LTD".                     
                                                                      
AS AT 21/04/2011, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF       
600,000 SHARES OF A VALUE OF S$600,000.
 
PRINCIPAL ACTIVITIES:                                                 
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY      
AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:        
1) WHOLESALE OF SCRAP, JUNK AND WASTE DEALERS;                        
   DEALING IN NON-FERROUS METALS & INGOTS
2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)  
                                                                      
DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF   
THE COMPANY CONSIST OF IMPORTERS AND EXPORTERS IN GENERAL MERCHANDISE.
 
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:       
                                                                      
BACKGROUND:                                                           
SINCE 2000, CROWN EXPORTS (SINGAPORE) PTE LTD HAS BEEN SUCCESSFULLY   
SERVING THE METALS INDUSTRY WITH ITS' STRONG FUNDAMENTALS IN TRADING
AND COMMITMENT TO INTEGRITY. CROWN EXPORTS IS A DYNAMIC COMPANY WITH A
CORE FOCUS ON NON-FERROUS METALS OF LME REGISTERED ORIGIN.            
                                                                      
OVER THE YEARS, CROWN EXPORTS HAS DEVELOPED A STRONG ALLIANCE WITH    
CONSUMERS AND PRODUCERS ALIKE, PLAYING A KEY ROLE IN THE OVER ALL
SUPPLY CHAIN CYCLE. WE AIM TO HELP THEIR TRADE PARTNERS ACHIEVE       
OPTIMUM PRICES IN THEIR DAY TO DAY BUSINESS WITH THE CAREFUL USE OF   
MARKET INSTRUMENTS, HEDGING STRATEGIES AND LOGISTICAL ACUMEN SUCH AS  
TO CREATE A WIN-WIN SITUATION FOR ALL PARTIES INVOLVED.
LOCATED IN SINGAPORE; CROWN EXPORTS HAS THE ADVANTAGE OF BEING        
FAVOURABLY POSITIONED AT THE HEART OF THE EAST-WEST TRADE ROUTE. WITH 
A STRONG COMBINATION OF GENEROUS ECONOMIC POLICIES AND A VERY         
DEPENDABLE BANKING ENVIRONMENT; ALONG WITH A SECURE GOVERNMENT,       
SINGAPORE IS A HAVEN FOR BUSINESSES TO OPERATE ON THE GLOBAL STAGE.
                                                                      
CROWN EXPORTS HAS ACCOMPLISHED MUCH OVER THE YEARS, AND IS PROUD OF   
THE SERVICES THAT IT PROVIDES TO ITS CUSTOMERS. THEY BELIEVE THAT THEY
ARE A PART OF YOUR BUSINESS AND SO ALWAYS ENSURE TO GIVE YOU THE BEST 
POSSIBLE SERVICE SO THAT THEY MAY ALL GROW TOGETHER. THIS PHILOSOPHY
OF OURS HAS SERVED THEM WELL TO DEVELOP THE LONG-TERM RELATIONSHIPS   
THAT ARE THE BUILDING BLOCKS OF THEIR CORE BUSINESS.                  
                                                                      
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:                          
* DEALING IN NON-FERROUS PRIME METALS, WHOLESALE OF METAL SCRAP, JUNK
AND WASTE DEALERS, SPICES AND AGRICULTURAL COMMODITIES, GENERAL       
WHOLESALE TRADE                                                       
* WORLDWIDE SUPPLIER OF RAW METALS, WITH A FOCUS ON NON FERROUS METALS
FOR A WIDE SPECTRUM OF INDUSTRIAL APPLICATIONS
 
PRODUCTS DEALINGS:                                                    
* ALUMINIUM                                                           
* TIN                                                                 
* ZINC                                                                
* COPPER
* NICKEL                                                              
* LEAD                                                                
                                                                      
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 ENGAGES IN THE FOLLOWING ACTIVITIES:                          
* TRADING OF NON-FERROUS METAL AND GENERAL PRODUCTS                   
                                                                      
IMPORT COUNTRIES:                                                     
* UNITED KINGDOM
                                                                      
EXPORT COUNTRIES:                                                     
* INDIA                                                               
* SRI LANKA                                                           
* BANGLADESH
* PAKISTAN                                                            
                                                                      
THE SUBJECT DOES EXPORTS AND DOES NOT SELL LOCALLY.                   
                                                                      
NUMBER OF EMPLOYEES:
* 2010: 5                                                             
                                                                      
FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS    
GATHERED:
 
SUBJECT CONFIRMED ITS BUSINESS ADDRESS AND WEBSITE.                   
                                                                      
NO OTHER TRADE INFORMATION IS AVAILABLE .                
                                                                      
REGISTERED AND BUSINESS ADDRESS:
3 SHENTON WAY                                                         
#12-09 SHENTON HOUSE                                                  
SINGAPORE 068805                                                      
DATE OF CHANGE OF ADDRESS: 31/05/2010                                 
- OWNED PREMISE
                                                                      
WEBSITE: http://www.crownexports.net/                                  
                                                                      
EMAIL:     crownexports@yahoo.com.sg                                       
                crown@crownexports.net

 

 

MANAGEMENT

 

THE DIRECTORS AT THE TIME OF THE REPORT ARE:                          
                                                                      
1) CHETAN RASIKLAL SHETH, A SINGAPOREAN                               
   - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.
 
2) PEER MOHAMED ABDUL WAHAB, A SINGAPORE PERMANENT RESIDENT           
   - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.        
                                                                      
3) SHETH MITAN CHETAN, A SINGAPOREAN                                  
   - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.

 

 

ADVERSE ON DIRECTORS

 

DIRECTOR'S NAME:                                              CHETAN RASIKLAL SHETH                                
ADVERSE REPORT AGAINST DIRECTOR:             NOT AVAILABLE FROM OUR DATABASE      
PROPERTY OWNERSHIP:                                     OWNS 1                                            
ANNUAL VALUE:                                                   S$9,000                                                 
CO-OWNER (S):                                                    SHETH JYOTI CHETAN
                                                                      
DIRECTOR'S NAME:                                              PEER MOHAMED ABDUL WAHAB                             
ADVERSE REPORT AGAINST DIRECTOR:             NOT AVAILABLE FROM OUR DATABASE      
PROPERTY OWNERSHIP:                                     OWNS 1                                            
ANNUAL VALUE:                                                   S$6,300
CO-OWNER (S): THOULATHINISHA BEGUM W/O ABDUL WAHAB                    
                                                                      
DIRECTOR'S NAME: SHETH MITAN CHETAN                                   
ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE      
PROPERTY OWNERSHIP: NIL
ANNUAL VALUE: NA                                                      
CO-OWNER (S): NA                                                      
                                                                      
*              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

 

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.44.38

UK Pound

1

Rs.73.88

Euro

1

Rs.65.83

 

 

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

----

NB

New Business

----

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.