MIRA INFORM REPORT

 

 

Report Date :           

30.05.2011

 

IDENTIFICATION DETAILS

 

Name :

SANEX INTERNATIONAL PTE. LTD.

 

 

Registered Office :

3 Shenton Way #15-11 Shenton House, Singapore 068805

 

 

Country :

Singapore

 

 

Date of Incorporation :

30.01.2009

 

 

Com. Reg. No.:

200901718H

 

 

Legal Form :

Exempt Pte Ltd

 

 

Line of Business :

 
Trading of metal scrap and coal

 

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

 

 

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

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   

 

SANEX INTERNATIONAL PTE. LTD.

 

 

Line Of Business    

 
TRADING OF METAL SCRAP AND COAL

 

 

Parent Company 

 

-

(PERCENTAGE OF SHAREHOLDING: 100%)

 

 

Financial Elements

 

Sales                                      : -

Networth                                 : -

Paid-Up Capital                                        : S$1,410,000

Net result                                : -

Net Margin(%)          : -

Return on Equity(%) : -

Leverage Ratio         : -

 

 

Rating

 

Credit Opinion          : CREDIT LINE TO A MAXIMUM OF SGD210,000 CAN BE CONSIDERED

 

 

COMPANY IDENTIFICATION

 

Subject Company :

SANEX INTERNATIONAL PTE. LTD.

Business Address:

3 SHENTON WAY #15-11 SHENTON HOUSE

Town:

SINGAPORE

Postcode:

068805

Country:

Singapore

Telephone:

62256330/62258550

Fax:

6224 0944

ROC Number:

200901718H

Easy Number company:

00006098018847

 

 

SUMMARY

 

Legal Form:

Exempt Pte Ltd

Date Inc.:

30/01/2009

Summary year :

 

All amounts in this report are in :

SGD

Sales:

 

Capital:

 

Paid-Up Capital:

1,410,000

Net result :

 

Share value:

 

 
 
 
BASED ON ACRA'S RECORD 
                                              NO OF SHARES      CURRENCY             AMOUNT              
ISSUED ORDINARY                1,410,000                SGD                        1,410,000.00                     
PAID-UP ORDINARY               -                              SGD                        1,410,000.00
 
AUDITOR : MGI N RAJAN ASSOCIATES

REFERENCES

 

Credit Requested:

 

Credit Opinion:

CREDIT LINE TO A MAXIMUM OF SGD210,000 CAN BE CONSIDERED

 

Litigation:

No

Company status :

TRADING

Started :

30/01/2009

 

 

PRINCIPAL(S)

 

SEETAL CHAND JAIN

F1314292X

Director

 

 

DIRECTOR(S)

 

BEULAH SHANTHINI

S2696645J

Company Secretary

Appointed on :

12/04/2010

 

Street :

190C HOLLAND ROAD TOHO MANSION

 

Town:

SINGAPORE

 

Postcode:

278585

 

Country:

Singapore

 

 

SANJAY JHUNJHUNWALA

Z1850657

Director

Appointed on :

30/01/2009

 

Street :

W 25/3 WESTERN AVENUE SAINIK FARMS

 

Town:

NEW DELHI

 

Postcode:

100062

 

Country:

India

 

 

SEETAL CHAND JAIN

F1314292X

Director

Appointed on :

12/04/2010

 

Street :

2 MARINE VISTA #19-09

 

Town:

SINGAPORE

 

Postcode:

449026

 

Country:

Singapore

 

 

 

FORMER DIRECTOR(S)

 

ARUN SHARMA

S2760176F

 

 

 

ACTIVITY(IES)

 

Activity Code:

11760

IMPORTERS And EXPORTERS

 
 
BASED ON ACRA'S RECORD 
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)

 

 

CHARGES

 

 

AVAILABLE

Date:

16/07/2010

Amount:

0

Comments :

 
CHARGE NO : C201006083                                                
AMOUNT SECURED : ALL MONIES OWING                                     
CHARGEE(S) : THE HONGKONG & SHANGHAI BANKING CORPORATION LTD

 

BANKERS

 

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

 

 

SHAREHOLDERS(S)

 

SANJAY JHUNJHUNWALA

1,410,000

Private Person

 

Street :

W 25/3 WESTERN AVENUE SAINIK FARMS

Town:

NEW DELHI

Postcode:

100062

Country:

India

 

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

AVERAGE

Liquidity :

UNKNOWN

Payments :

REGULAR

Trend :

LEVEL

Financial Situation:

UNKNOWN

 

 

 

FINANCIAL COMMENTS

 

LIMITED 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          
30/01/2009 AS A LIMITED EXEMPT PRIVATE COMPANY BY SHARES AND IS       
TRADING UNDER ITS PRESENT NAMESTYLE AS "SANEX INTERNATIONAL PTE.      
LTD.".
 
AS AT 21/04/2011, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF    
1,410,000 SHARES, OF A VALUE OF S$1,410,000.                          
                                                                      
PRINCIPAL ACTIVITIES:                                                 
SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY
AUTHORITY (ACRA) BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:           
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)  
                                                                      
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:
                                                                      
THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE    
CLASSIFICATION OF: TRADING COMPANIES                                  
                                                                      
SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:
* BUREAU OF INTERNATIONAL RECYCLING                                   
                                                                      
FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS    
GATHERED:
 
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:                          
* TRADING OF METAL SCRAP AND COAL                                     
                                                                      
IMPORT COUNTRIES:                                                     
* UNITED STATES OF AMERICA
* EUROPE                                                              
* AFRICA                                                              
                                                                      
EXPORT COUNTRIES:                                                     
* INDIA
* PAKISTAN                                                            
                                                                      
THE SUBJECT ONLY EXPORTS AND DOES NOT SELL LOCALLY.                   
                                                                      
FROM THE TELE-INTERVIEW CONDUCTED, SUBJECT CONFIRMED NO
CHANGES IN BUSINESS ACTIVITES AND CONTACT DETAILS.                    
                                                                      
NO OTHER TRADE INFORMATION IS AVAILABLE.
 
REGISTERED AND BUSINESS ADDRESS:                                      
3 SHENTON WAY                                                         
#15-11                                                                
SHENTON HOUSE                                                         
SINGAPORE 068805
DATE OF CHANGE OF ADDRESS: 21/12/2009                                 
- RENTED PREMISE                                                      
- OWNED BY: KUPAC INVESTMENTS PTE. LTD.                               
                                                                      
OTHER BUSINESS ADDRESSES:
                                                                      
3 SHENTON WAY                                                         
#08-09                                                                
SHENTON HOUSE                                                         
SINGAPORE 068805
                                                                      
3 SHENTON WAY                                                         
#15-09                                                                
SHENTON HOUSE                                                         
SINGAPORE 068805
                                                                      
                                                                      
WEBSITE: http://www.sanex.in/index.html                               
EMAIL  : info.sg@sanexintl.com

 

MANAGEMENT

 

THE DIRECTORS AT THE TIME OF THE REPORT ARE:                          
                                                                      
1) SEETAL CHAND JAIN, AN INDIAN                                       
   - BASED IN SINGAPORE
                                                                      
2) SANJAY JHUNJHUNWALA, AN INDIAN                                     
   - BASED IN INDIA.

 

 

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 18.0 IN 1Q 2010, FOLLOWING THE 1.5% GAIN IN 4Q 2009. IT IS ATTRIBUTED TO IMPROVEMENTS IN GLOBAL TRADE FLOWS.

 

DOMESTIC WHOLESALE TRADE INDEX

 

THE DOMESTIC WHOLESALE TRADE (SEASONALLY ADJUSTED) ROSE BY 1.8% IN 1Q 2010 OVER 4Q 2009, WITH IMPROVING SALES IN INDUSTRIAL AND CONSTRUCTION MACHINERY, GENERAL WHOLESALE TRADE AND CHEMICALS AND CHEMICAL PRODUCTS SECTORS, BUT PETROLEUM AND PETROLEUM PRODUCTS REGISTERED LOWER SALES. EXCLUDING PETROLEUM, OVERALL DOMESTIC SALES GREW BY 9.7%.

 

COMPARED TO THE SAME PERIOD A YEAR AGO, DOMESTIC WHOLESALE TRADE IN 1Q 2010 ROSE BY 37.1%, WITH HIGHER SALES REPORTED BY ALL WHOLESALE SECTORS. EXCLUDING PETROLEUM, DOMESTIC WHOLESALE TRADE GREW BY 26.9%.

 

AFTER REMOVING PRICE EFFECT, DOMESTIC WHOLESALE TRADE VOLUME SHOWED A RELATIVELY SMALLER YEAR-0N-YEAR INCREASE OF 9.4%. EXCLUDING PETROLEUM, DOMESTIC WHOLESALE TRADE GREW BY 17.9%.

 

ALL WHOLESALE SECTORS, EXCEPT PETROLEUM AND PETROLEUM PRODUCTS AND TIMBER, PAINTS AND CONSTRUCTION MATERIALS, REGISTERED POSITIVE GROWTHS IN DOMESTIC WHOLESALE TRADE IN 1Q 2010 COMPARED TO 4Q 2009 (AFTER SEASONAL ADJUSTMENT).

 

SECTORS THAT REGISTERED DOUBLE-DIGIT QUARTER-ON-QUARTER GROWTHS INCLUDED INDUSTRIAL AND CONSTRUCTION MACHINERY (25.7%), GENERAL WHOLESALE TRADE (24.5%) AND CHEMICALS AND CHEMICAL PRODUCTS (16.7%).

 

OTHER SECTORS SUCH AS TELECOMMUNICATIONS AND COMPUTERS, ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, FOOD, BEVERAGES AND TOBACCO AS WELL AS HOUSEHOLD EQUIPMENT AND FURNITURE RECORDED INCREASES OF BETWEEN 1.0% AND 5.7%.

 

PETROLEUM AND PETROLEUM PRODUCTS AND TIMBER, PAINTS AND CONSTRUCTION MATERIALS SECTORS REGISTERED DECLINES OF 3.0% AND 1.6% RESPECTIVELY IN DOMESTIC WHOLESALE TRADE OVER 4Q 2009.

 

ALL WHOLESALE SECTORS REGISTERED YEAR-ON-YEAR GROWTHS IN DOMESTIC WHOLESALE TRADE IN 1Q 2010.

 

DOMESTIC SALES OF GENERAL WHOLESALE TRADE, CHEMICALS AND CHEMICAL PRODUCTS AS WELL AS PETROLEUM AND PETROLEUM PRODUCTS SECTORS ROSE BY BETWEEN 54.6% AND 96.5% OVER THE SAME PERIOD A YEAR AGO. AFTER REMOVING PRICE EFFECT, THE SALES VOLUME OF GENERAL WHOLESALE TRADE AND CHEMICALS AND CHEMICAL PRODUCTS GREW BY 75.7% AND 25.2% RESPECTIVELY WHILE THAT OF PETROLEUM AND PETROLEUM PRODUCTS FELL BY 1.1%.

 

OTHER SECTORS THAT RECORDED DOUBLE-DIGIT YEAR-ON-YEAR GROWTHS IN DOMESTIC WHOLESALE TRADE INCLUDED ELECTRONIC COMPONENTS (33.1%), TELECOMMUNICATIONS AND COMPUTERS (26.4%), TRANSPORT EQUIPMENT (19.6%), HOUSEHOLD EQUIPMENT AND FURNITURE (17.3%), INDUSTRIAL AND CONSTRUCTION MACHINERY (16.0%), SHIP CHANDLERS AND BUNKERING (15.6%) AND TIMBER, PAINTS AND CONSTRUCTION MATERIALS (11.2%).

 

FOREIGN WHOLESALE TRADE INDEX

FOREIGN WHOLESALE TRADE (SEASONALLY ADJUSTED) ROSE BY 9.8% IN 1Q 2010 OVER 4Q 2009, WITH IMPROVEMENT IN SALES IN MOST OF THE WHOLESALE SECTORS. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE ROSE BY 7.4% OVER THE PREVIOUS QUARTER.

 

ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE TRADE GREW BY 37.8%, WITH STRONG GROWTHS IN MOST WHOLESALE SECTORS. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE ROSE BY 23.0%.

 

AFTER ADJUSTING FOR PRICE CHANGES, FOREIGN WHOLESALE TRADE VOLUME ROSE BY 9.8% FROM A YEAR AGO. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE VOLUME GREW BY 17.4%.

 

AFTER SEASONAL ADJUSTMENT, ALL WHOLESALE SECTORS REGISTERED POSITIVE QUARTER-ON-QUARTER GROWTHS IN FOREIGN WHOLESALE TRADE IN 1Q 2010, EXCEPT TIMBER, PAINT AND CONSTRUCTION MATERIALS, FOOD, BEVERAGES AND TOBACCO AND TELECOMMUNICATIONS AND COMPUTERS.

 

GENERAL WHOLESALE TRADE AND INDUSTRIAL AND CONSTRUCTION MACHINERY SECTORS REGISTERED DOUBLE-DIGIT INCREASES OF 15.5% AND 11.9% RESPECTIVELY IN FOREIGN WHOLESALE TRADE. SHIP CHANDLERS AND BUNKERING, HOUSEHOLD EQUIPMENT AND FURNITURE, PETROLEUM AND PETROLEUM PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS AND ELECTRONIC COMPONENTS SECTORS ALSO GREW BETWEEN 1.5% AND 5.4%.

 

FOREIGN SALES OF TIMBER, PAINTS AND CONSTRUCTION MATERIALS AND FOOD, BEVERAGES AND TOBACCO FELL BY 7.6% AND 4.8% RESPECTIVELY IN 1Q 2010.

 

OTHER THAN THE FOOD, BEVERAGES AND TOBACCO SECTOR WHICH REGISTERED A MARGINAL DROP OF 1.5%, 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 30.0% AND 60.6%. AFTER ADJUSTING FOR PRICE CHANGES, FOREIGN WHOLESALE TRADE VOLUME OF PETROLEUM AND PETROLEUM PRODUCTS AND CHEMICALS AND CHEMICAL PRODUCTS ROSE BY A SMALLER 1.8% AND 3.6% RESPECTIVELY WHILE THAT OF SHIP CHANDLERS AND BUNKERING FELL BY 0.1%.

 

OTHER SECTORS THAT REPORTED STRONG YEAR-ON-YEAR GROWTHS IN FOREIGN SALES INCLUDED HOUSEHOLD EQUIPMENT AND FURNITURE (48.4%), GENERAL WHOLESALE TRADE (41.6%), TRANSPORT EQUIPMENT (37.5%) AND TIMBER, PAINTS AND CONSTRUCTION MATERIALS (36.4%).

 

RETAIL SALES

RETAIL SALES VOLUME ROSE FOR THE FIRST TIME SINCE 3Q 2008 TO REACH 1.1%, REVERSING THE 4.1% DECLINE REGISTERED IN 4Q 2010. EXCLUDING MOTOR VEHICLE SALES, THE GROWTH WAS HIGHER AT 7.0%.

 

ALTHOUGH WEIGHED DOWN BY THE DECLINE OF MOTOR VEHICLE SALES (-13.0%), OTHER MAJOR RETAIL SEGMENTS, SUCH AS WATCHES AND JEWELLERY (14.0%), FURNITURE AND HOUSEHOLD EQUIPMENT (14.0%), WEARING APPAREL AND FOOTWEAR (10.0%), AND DEPARTMENT STORES (8.1%) POSTED STRONG GROWTH IN THE FIRST QUARTER OF 2010.

 

 

NEWS 

 

MOTOR INDUSTRY SHAKE-UP

THE MOTOR INDUSTRY IS BRACING ITSELF FOR A SHAKE-UP. THIS IS BECAUSE NEW VEHICLE SALES COULD SINK BELOW 55,000 CARS THIS YEAR – LESS THAN HALF THE AVERAGE 117,000 IT MOVED OOUT OF SHOWROOMS IN EACH OF THE “FEAST” YEARS OF THE LAST DECADE.

 

RETRENCHEMENTS AND RESTRUCTURING ARE ON THE INDUSTRY’S HORIZON, IN RESPONSE TO THE NEW MARKET SIZE BROUGHT ON BY A SHARP CUT IN THE CERTIFICATE OF ENTITLEMENT (COE) SUPPLY, WHICH KICKED IN LAST MONTH.

 

MOTOR COMPANIES THAT HAVE BUILT NEW SHOWROOMS OR EXPANDED EXISTING ONES AND HIRED MORE SALES STAFF NOW FIND THEY HAVE TO SCALE BACK.

 

MR CHEAH KIM TECK, JARDINE CYCLE & CARRIAGE’S CHIEF EXECUTIVE FOR MOTOR OPERATIONS, SAID: “A SAD FACT OF THE TRADE IS WHEN THE MARKET WAS HOVERING AROUND 100,000 UNITS A YEAR, YOU HAD TO HAVE THE SALES PEOPLE. NOW YOU HAVE TO CUT.”

 

EVEN AS MOTOR FIRMS ARE LOOKING AT TRIMMING THEIR HEADCOUNTS, SOME SALES STAFF ARE ALREADY LEAVING FOR OTHER INDUSTRIES THAT ARE FARING WELL, SUCH AS THE REAL ESTATE, HOSPITALITY AND FINANCIAL SECTORS, SAID MR JESLIN TEO, CHIEF EXECUTIVE OF FIAT AGENT TTS EUROCARS.

 

THOSE WHO STAY ON IN SALES MAY WELL TAKE HOME SMALLER COMMISSIONS.

 

BMW AGENT PERFOMANCE MOTORS AND THE SINGAPORE MANUAL & MERCANTILE WORKERS’ UNION, FOR INSTANCE, RECENTLY AGREED ON A NEW COMMISSION PLAN.

 

A SENIOR SPOKESMAN FOR BORNEO MOTORS, WHICH DISTRIBUTES THE TOP-SELLING TOYOTA BRAND, SAID THE COE SQUEEZE WOULD HIT VOLUME-SELLES HARDER, BECAUSE “ A 40.0% DROP TO A FIRM

THAT SELLS 150 CARS A YEAR MEANS 60 CARS. BUT TO ONE THAT SELLS 10,000 CARS, IT’S 4,000”.

 

EVEN MR KARSONO KWEE, THE EXECUTIVE CHAIRMAN OF EUROKARS GROUP AND ONE OF THE MOST BULLISH MOTOR TRADERS IN SINGAPORE, SAID HE WILL ASSESS WHETHER THE GROUP NEEDS ALL THE SEVEN SHOWROOMS IT NOW HAS.

 

EUROKARS HOLDS THE ROLLS-ROYCE, MINI, PORSCHE, OPEL AND SAAB FRANCHISES.

 

BUT HE SAID HE WILL CONDUCT THE REVIEW ONLY IN 22 MONTHS, AFTE A MAJOR PROJECT TO HOUSE ROLLS=ROYCE AND PORSCHE IN A CITY SHOWROOM IS COMPLETED,”BECAUSS WE STILL NEED THE SPACE WHEN CONSTRUCTION IS GOING ON”.

 

THE GROUP HAS ALREADY RENTED OUT ITS FORMER OPEL SHOWROOM IN KAMPUNG UBI AND MOVED THE BRAND TO ONE OF ITS TOWN PREMISES.

 

BESIDES DOING A STOCK-TAKE ON THEIR INFRASTRUCTURE, MOTOR COMPANIES ARE ALSO REDEFINING THE SCOPE OF THEIR BUSINESS.

 

THE STRAITS TIMES UNDERSTANDS THAT BORNEO MOTORS, WHICH HAS SHUNNED THE USED-CAR TRADE SINCE 1998, WILL REVISIT THE SEGMENT SOON.

 

PARALLEL IMPORTERS, MANY OF WHOM WERE USED-CAR DEALERS BEFORE THE 1990S, ARE ALSO RETURNING TO THEIR FORMER TRADE NOW THAT THE COE SUPPLY IS DOWN.

 

MR RAYMOND TANG, THE SECRETARY OF THE SINGAPORE VEHICLE TRADERS ASSOCIATION, SAID: “THOSE WHO ARE STILL DOING PARALLEL IMPORTING HAVE SHIFTED THEIR FOCUS TO BIGGER CARS AND EUROPEAN BRANDS. THESE GIVE THEM BETTER MARGINS FOR COE BIDDING.”

 

THE BORNEO MOTORS SPOKESMAN NOTED THAT THE INDUSTRY SHAKE-UP WOULD ALSO HAVE A RIPPLE EFFECT ON BUSINESSES IN SUPPORTING INDSUTRIES – THOSE SUPPLYING CAR ACCESSORIES, LEATHER UPHOLSTERY AND THOSE THAT PROVIDE PRE-DELIVERY INSPECTIONS.

 

MR DAVID SIEW, THE PROPRIETOR OD TOMO-CSE, A LEADING SUPPLIER OF LEATHER UPHOLSTERY, SAID HE EXPECTS HIS BUSINESS HERE TO SHRINK BY AT LEAST 30.0% OVER THE NEXT SIX MONTHS.

 

MOTOR TRADERS FEEL THE COE SUPPLY COULD HAVE BEEN CUT MORE GRADUALLY.

 

MR MICHAEL WONG, THE VICE-PRESIDENT OF THE MOTOR TRADERS ASSOCIATION, SAID:”IN PREVIOUS IMPLEMENTATIONS OF POLICIES AND RULES, CHANGES WERE SPREAD OUT OVER TIME, SO IT WAS MORE GRADUAL.”

 

MR CHEAH AGREED, SAYING THE COE CUT MADE FOR A FAMINE AFTER THE FEAST.

 

HE SAID HE EXPECTED THE COE SUPPLY TO RETURN TO “SIZEABLE LEVELS BY 2013, BUT GETTING THROUGH THE NEXT THREE YEARS “WILL NOT BE EASY, ESPECIALLY FOR THE MARGINAL PLAYERS”.

 

 

OUTLOOK

 

A NET WEIGHTED BALANCE OF 44% OF WHOLESALERS EXPECT POSITIVE BUSINESS SENTIMENTS FOR THE PERIOD ENDING SEP 2010. IN PARTICULAR, THOSE DEALING WITH FOOD AND BEVERAGES, CHEMICALS AND CHEMICAL PRODUCTS, NON-AGRICULTURAL INTERMEDIATE PRODUCTS, INDUSTRIAL MACHINERY AND EQUIPMENT, AND COMPUTERS AND ACCESSORIES.

 

RETAILERS FORECAST LESS UPBEAT BUSINESS CONDITIONS FOR THE COMING MONTHS. A NET WEIGHTED BALANCE OF 18% OF RETAILERS FORECAST LESS FAVOURABLE BUSINESS PROSPECTS FOR THE PERIOD ENDING SEP 2010. THIS APPLIES TO DEPARTMENT STORES, SUPEMARKETS, RETAILERS OF MOTOR VEHICLES, COSMETICS AND TOILETRIES AND WEARING APPAREL AND FOOTWEAR.

 

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.45.21

UK Pound

1

Rs.74.31

Euro

1

Rs.64.40

 

 

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%)

 

 

 

 

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