MIRA INFORM REPORT

Report Date :

15^th November, 2006

IDENTIFICATION DETAILS

Name :	EVEREST INTERNATIONAL PTE LTD.
Registered Office :	1 Shenton Way #10-01, Robina House, Singapore 068803, Singapore
Country :	Singapore
Financials (as on) :	31.12.2004
Date of Incorporation :	19.02.1992
Legal Form :	^Exempt Pte Ltd
Line of Business :	Supplying Raw Materials And Steel Products

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Company Name

EVEREST INTERNATIONAL PTE LTD

Line Of Business 

SUPPLYING RAW MATERIALS AND STEEL PRODUCTS

Parent Company

-

Financial Elements

FY 2004

COMPANY

Sales : S$35,606,402

Networth : S$2,203,347

Paid-Up Capital S$1,500,000

Net result : S$89,145

Net Margin(%) : 0.25

Return on Equity(%) : 4.05

Leverage Ratio : 4.52

Note: Based on Accounting and Corporate Regulatory Authority’s (ACRA) record dated

08/11/2006, the paid-up capital has increased to S$2,000,000.

Rating

Credit Requested : -

Credit Rating : Sing $ 1000 001 to Sing $ 5 000 000

Credit Opinion : -

COMPANY IDENTIFICATION

^{Subject Company : EVEREST INTERNATIONAL PTE LTD}

^{Former Name : JAPICELLE PTE LTD}

^{Business Address : 1 SHENTON WAY}

^#10-01

^{ROBINA HOUSE}

^{Town : SINGAPORE}

^{Postcode : 068803}

^{County : -}

^{Country : Singapore}

^{Telephone : 6336 3700}

^{Fax : 6336 1400}

^{ROC Number : 199200878D}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{JAPICELLE PTE LTD}

^{DATE OF CHANGE OF NAME: 13/03/1992}

SUMMARY

^{All amounts in this report are in: SGD unless otherwise stated}

^{Legal Form : Exempt Pte Ltd}

^{Date Inc. : 19/02/1992}

^{Previous Legal Form : -}

^{Summary year : 31/12/2004}

^{Sales : 35,606,402}

^{Networth : 2,203,347}

^{Capital : -}

^{Paid-Up Capital : 1,500,000}

^{Employees : 5}

^{Net result : 89,145}

^{Share value : 1}

^{AUDITOR : J K MEDORA & CO}

^{BASED ON ACRA'S RECORD DATED 08/11/2006}

^{CURRENCY AMOUNT}

^{ISSUED ORDINARY SGD 2,000,000}

^{PAID-UP ORDINARY SGD 2,000,000}

REFERENCES

^{CCMS Number : 702000509161}

^{Report Date : 14/11/2006}

²⁵⁶⁰⁸

^{Update Date : 14/11/2006}

^{Credit Requested : -}

^{Credit Opinion : -}

^{Litigation : No}

^{Company status : TRADING}

^{Started : 19/02/1992}

PRINCIPAL(S)

^{JATIA SIDDHARTH MOHANLAL S7385865H Managing Director}

DIRECTOR(S)

^{VANGAL RANGARAJAN RANGANATHAN S2662860A Director}

^{Appointed on : 21/11/2002}

^{Street : 207 SERANGOON CENTRAL}

^#11-198

^{Town : SINGAPORE}

^{Postcode : 550207}

^{Country : Singapore}

^{SEET BENG CHOO JEANNE S1234059A Company Secretary}

^{Appointed on : 31/10/2003}

^{Street : 529 HOUGANG AVENUE 6}

^#07-263

^{Town : SINGAPORE}

^{Postcode : 530529}

^{Country : Singapore}

^{PEH POH CHIN S6840069D Company Secretary}

^{Appointed on : 31/10/2003}

^{Street : 198 BOON LAY DRIVE}

^#03-51

^{Town : SINGAPORE}

^{Postcode : 640198}

^{Country : Singapore}

^{JATIA SIDDHARTH MOHANLAL S7385865H Director}

^{Appointed on : 10/10/2002}

^{Street : 31 LEONIE HILL}

^#14-01

^RIVERSHIRE

^{Town : SINGAPORE}

^{Postcode : 239229}

^{Country : Singapore}

^{JATIA SIDDHARTH MOHANLAL S7385865H Managing Director}

^{Appointed on : 10/10/2002}

^{Street : 31 LEONIE HILL}

^#14-01

^RIVERSHIRE

^{Town : SINGAPORE}

^{Postcode : 239229}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{WONG LAI LENG S1176982I}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD AS AT 08/11/2006}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

CHARGES

^{Date : 08/09/2006}

^{Comments : CHARGE NO: C200606058}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : CITIBANK N.A.}

^{Date : 22/03/2004}

^{Comments : CHARGE NO: C200401352}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : STANDARD CHARTERED BANK}

^{Date : 27/01/2005}

^{Comments : CHARGE NO: C200500549 (DISCHARGED)}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE(S) : OVERSEAS-CHINESE BANKING CORPORATION LIMITED}

^{Date : 27/01/2005}

^{Comments : CHARGE NO: C200500548}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE(S) : THE BANK OF EAST ASIA LIMITED}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

Ø STANDARD CHARTERED BANK

Ø OVERSEAS-CHINESE BANKING CORPORATION LIMITED

Ø THE BANK OF EAST ASIA LIMITED

Ø UCO BANK

Ø CITIBANK N.A.

SHAREHOLDERS(S)

^{VANGAL RANGARAJAN RANGANATHAN 1 Private Person}

^{Street :207 SERANGOON CENTRAL}

^#11-198

^{Town : SINGAPORE}

^{Postcode : 550207}

^{Country : Singapore}

^{JATIA SIDDHARTH MOHANLAL 1,999,999 Private Person}

^{Street : 31 LEONIE HILL}

^#14-01

^RIVERSHIRE

^{Town : SINGAPORE}

^{Postcode : 239229}

^{Country :Singapore}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIANT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation :AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

^{All amounts in this report are in : SGD}

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 29/08/2005}

^{Balance Sheet Date: 31/12/2004 31/12/2003}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 1,060 1}

^{Investments - 10}

^{Total Fixed Assets: 1,060 11}

^{Inventories: - 125,294}

^{Receivables: 9,715,733 3,111,991}

^{Cash,Banks, Securitis: 2,442,633 1,398,318}

^{Other current assets: 10,548 33,401}

^{Total Current Assets: 12,168,914 4,669,004}

^{TOTAL ASSETS: 12,169,974 4,669,015}

^{--- LIABILITIES}

^{Equity capital: 1,500,000 1,000,000}

^{Profit & loss Account: 703,347 614,202}

^{TOTAL EQUITY: 2,203,347 1,614,202}

^{Trade Creditors: 4,634,685 1,445,866}

^{Prepay. & Def. charges: 55,953 42,255}

^{Due to Bank: 4,763,789 1,400,798}

^{Provisions: 12,200 13,500}

^{Other Short term Liab.: 500,000 152,394}

^{Total short term Liab.: 9,966,627 3,054,813}

^{TOTAL LIABILITIES: 9,966,627 3,054,813}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 35,606,402 18,680,376}

^{Result of ordinary operations 385,051 280,898}

^{NET RESULT BEFORE TAX: 102,379 65,282}

^{Tax : 13,234 14,252}

^{Net income/loss year: 89,145 51,030}

^{Interest Paid: 147,162 123,622}

^{Depreciation: 4,717 7,206}

^{Wages and Salaries: 135,902 40,988}

^{Financial Income: 140,610 115,152}

RATIOS

^{31/12/2004 31/12/2003}

^{Turnover per employee: 7121280.40 3736075.20}

^{Fin. Charges / Turnover(%):0.00 0.01}

^{Stock / Turnover(%): 0.00 0.01}

^{Net Margin(%): 0.25 0.27}

^{Return on Equity(%): 4.05 3.16}

^{Return on Assets(%): 0.73 1.09}

^{Net Working capital: 2202287.00 1614191.00}

^{Cash Ratio: 0.25 0.46}

^{Quick Ratio: 1.22 1.48}

^{Current ratio: 1.22 1.53}

^{Receivables Turnover: 98.23 59.97}

^{Leverage Ratio: 4.52 1.89}

^{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}

^{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

^{THE OVERALL FINANCIAL SITUATION OF THE COMPANY IS CONSIDERED TO BE FAIR IN VIEW OF THE FOLLOWING :}

^{NET WORTH}

^{THE BALANCE SHEET IS PASSABLE WITH THE NET WORTH RISING BY 36.49% TO S$2,203,347. IT IS DUE TO THE GREATER ACCUMULATED PROFITS.}

^LIQUIDITY

^{SIMILARLY, THE NET WORKING CAPITAL POSTED A RISE OF 36.43% TO S$2,202,287. IT IS ATTRIBUTED TO A FASTER RISE IN THE CURRENT ASSETS THAN CURRENT LIABILITIES.}

^{THE LIQUIDITY POSITION OF THE COMPANY HAS DECLINED AS REFLECTED BY THE CURRENT RATIO OF 1.22 (2003 : 1.53) AND QUICK RATIO OF 1.22 (2003 : 1.48).}

^LEVERAGE

^{GEARING HAS RISEN FROM 1.89 TO 4.52. THIS IS DUE TO A GREATER INCREASE IN THE LIABILITIES THAN NET WORTH.}

^{THE COMPANY IS MAINLY FINANCED BY TRADE CREDITORS WHICH COMPRISE 57.3% OF ITS CURRENT LIABILITIES AND AMOUNT TO S$6,794,204.}

^{THE DEBT FINANCING WHICH COMPRISES BILLS PAYABLE CONSTITUTE 47.79% OF ITS CURRENT LIABILITIES AND AMOUNT TO S$4,763,789.}

^{THE SECURED BILLS PAYABLE AMOUNTS TO S$4,763,789 AND IS SECURED BY PLEDGING OF THE COMPANY'S FIXED DEPOSITS AND PERSONAL GUARANTEE GIVEN BY ONE OF THE DIRECTORS.}

^{THE WEIGHTED AVERAGE EFFECTIVE INTEREST RATE AS AT BALANCE SHEET DATE WAS 7.625% (2003 : 6.5%).}

^{PROFITABILITY}

^{WITH THE TURNOVER IMPROVING BY 90.61% TO S$35,606,402, THE NET INCOME ROSE BY 74.69% TO S$89,145. AS A RESULT, THE NET MARGIN DETERIORATED SLIGHTLY FROM 0.27 TO 0.25.}

^{DEBT SERVICING}

^{INTEREST COVERAGE IS SUFFICIENT. DEBT SERVICING PROBLEMS IS UNLIKELY TO BE ANTICIPATED WITH THE GROWING TURNOVER AND POSITIVE NET INCOME.}

^{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 19/02/1992 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "JAPICELLE PTE LTD".}

^{SUBSEQUENTLY, ON 13/03/1992, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "EVEREST INTERNATIONAL PTE LTD".}

^{AS AT 08/11/2006, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 2,000,000 SHARES OF A VALUE OF S$2,000,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF: GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF GENERAL TRADING.}

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* SUPPLYING RAW MATERIALS AND STEEL PRODUCTS CATEGORIZE THE PRODUCTS INTO THREE PARTS.}

^{* RAW MATERIALS: SUPPLY TO THE STEEL FACTORIES RAW MATERIALS SUCH AS IRON ORE, PIG IRON, BULK FERRO ALLOYS, NOBLE ALLOYS ETC.}

^{* SEMI FINISHED STEEL PRODUCTS: STEEL BILLETS, SLABS, BLOOMS ETC WHICH ARE USED MAINLY IN STEEL ROLLING MILLS TO PRODUCE THE FINISHED STEEL PRODUCTS.}

^{* FINISHED STEEL PRODUCTS: SUPPLIER OF HOT ROLLED STEEL AND ALLOY STEEL ROUND BARS, DEFORMED BARS, WIRE RODS, STEEL SECTIONS, STEEL STRIPS, STEEL PLATES, HR COILS, CR COILS, STEEL & GALVANIZED PIPES AND SEAMLESS PIPES IN STEEL AND STAINLESS STEEL GRADE.}

^{PRODUCTS DEALINGS:}

^{* IRON ORE}

^{* PIG IRON}

^{* FERRO ALLOYS}

^{* DEFORMED BARS}

^{* STEEL WIRE RODS}

^{* ROUND BARS}

^{* HOT ROLLED COILS}

^{* COLD ROLLED COILS}

^{* GALVANIZED COILS}

^{* SEAMLESS PIPES}

^{* STAINLESS STEEL PIPES}

^{* STEEL BILLETS}

^{MARKETS SERVED:}

^{* SOUTH EAST ASIA}

^{* MIDDLE EAST}

^{* EUROPE}

^{* UNITED STATES OF AMERICA}

^{* SOUTH AMERICA}

^{OVERSEAS OFFICES:}

^{* INDIA}

^{* CHINA}

^{* UNITED STATES OF AMERICA}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 14/11/2006, THE FOLLOWING WAS GATHERED:}

^{THE SUBJECT REVEALS THAT THE PRODUCTS ARE NOT IMPORTED TO AND NOR IT IS EXPORTED FROM SINGAPORE. IT IS DIRECT SHIPMENT TO THE COUNTRIES.}

^{THE PRODUCTS ARE TRANSPORTED FROM:}

^{* CHINA TO INDIA}

^{* CHINA TO UNITED STATES OF AMERICA}

^{* INDIA TO UNITED STATES OF AMERICA}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2006: 5}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 14/11/2006.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{1 SHENTON WAY}

^#10-01

^{ROBINA HOUSE}

^{SINGAPORE 068803}

^{- RENTED PREMISE}

^{- OWNED BY CDL LAND PTE LTD}

^{- DATE OF CHANGE OF ADDRESS: 01/08/2005}

^{OVERSEAS OFFICES:}

^{INDIA OFFICE}

^{401, ARCADIA}

^{195, N.C.P.A MARG}

^{NARIMAN POINT MUMBAI}

^{400 021, INDIA}

^{TEL : 91-22-22843825}

^{91-22-56395101 TO 105}

^{FAX : 91-22-22851085}

^{CHINA OFFICE}

^{ROOM 10G12}

^{SHANGHAI MART}

^{2299 YAN'AN ROAD (W)}

^{SHANGHAI 200336, CHINA}

^{TEL : 86-21-62360132}

^{FAX : 86-21-62360133}

^{UNITED STATES OF AMERICA OFFICE}

^{EVEREST INTERNATIONAL LLC}

^{65 BROADWAY}

^{8TH FLOOR, SUITE 831}

^{NEW YORK NY 10006}

^{TEL : (1) 212 430 6628}

^{FAX : (1) 212 430 6629}

^WEBSITE:

^{http://www.greentex.com.sg}

^EMAIL:

^{Piyush@greentex.com.sg}

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THE REPORT ARE:}

^{1) VANGAL RANGARAJAN RANGANATHAN, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{GREENLAND TEXTILES PTE LTD}

^{TRAVINDO TRADING PTE LTD}

^{AVENUES SINGAPORE PTE LTD}

^{GLOBAL POLYTRADE PTE. LTD.}

^{2) JATIA SIDDHARTH MOHANLAL, A SINGAPORE PERMANENT RESIDENT}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{GREENLAND TEXTILES PTE LTD}

Singapore’s Country Rating 2006

Rating: A1

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION APPEARS TO BE VERY STABLE.

ECONOMIC GROWTH IS BECOMING MORE MODERATE AS INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND FOR ELECTRONIC PRODUCTS.

ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE’S STRONG FINANCIAL CONDITION.

AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITS POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR’S SHARE HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND BIOTECHNOLOGIES.

ASSETS

ONE OF THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR ROLE IN ITS PERFORMANCE.

ONE OF ASIA’S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS TERMS

WORKFORCE’S EDUCATION AND SKILL LEVEL IS VERY HIGH.

A MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING COMPANY, TEMASEK.

THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.

GREAT POLITICAL STABILITY.

WEAKNESSES

ECONOMY REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.

MUST ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER OTHER ASIAN ECONOMIES

REFORMS ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM MODERNIZATION.

AGING POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.

SOURCES: COFACE COPYRIGHT. ALL RIGHTS RESERVED.

@rating Country Rating Definition

Investment Grade

A1
The steady political and economic environment has positive effects on an already good payment record of companies. Very weak default probability.

A2
Default probability is still weak even in the case when one country's political and economic environment or the payment record of companies is not as good as in A1-rated countries.

A3
Adverse political or economic circumstances may lead to a worsening payment record that is already lower than the previous categories, although the probability of a payment default is still low.

A4
An already patchy payment record could be further worsened by a deteriorating political and economic environment. Nevertheless, the probability of a default is still acceptable.

Speculative Grade

B
An unsteady political and economic environment is likely to affect further an already poor payment record.

C
An very unsteady political and economic environment could deteriorate an already bad payment record.

D
The high risk profile of a country's economic and political environment will further worsen a generally very bad payment record.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

WITH THE GROWTH IN NON-OIL RE-EXPORTS AND THE RISE IN RETAIL SALES, THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY A ROBUST 15% IN 1Q2006, UP FROM THE 12% GAIN IN 4Q2005.

WHOLESALE TRADE

FOREIGN WHOLESALE TRADE INDEX

AS COMPARED TO 1Q2005, THE OVERALL FOREIGN WHOLESALE TRADE IN 1Q2006 ROSE BY 15.4%. EXCLUDING PETROLUEM, THE INDEX EXPANDED BY 11.5%.

IN CONTRAST, HOUSEHOLD EQUIPMENT & FURNITURE, FOOD, BEVERAGES & TOBACCO, PAINTS & CONSTRUCTION MATERIALS, WHOLESALERS OF TIMEBR REPORTED SLOWER FOREIGN BUSINESS OVER THE SAME PERIOD LAST YEAR.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE MARGINALLY BY 0.9% IN 1Q2006 OVER A YEAR AGO. EXCLUDING PETROLEUM, IT WAS UP BY 7.6%.

ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A DECLINE OF 9.4% FOLLOWING GROWTH FOR THREE CONSECUTIVE QUARTERS. EXCLUDING PETROLEUM, THE INDEX WERE LOWER BY 8.6%.

RETAIL TRADE

RETAIL SALES CHALKED UP 8.0% GROWTH IN 1Q2006, FELLING MARGINALLY FROM THE 8.2% GROWTH IN 4Q2005. SALES OF MOTOR VEHICLES ROSE BY 10% IN 1Q2006, HIGHER THAN THE 8.5% GAIN IN THE LAST QUARTER. EXCLUDING MOTOR VEHICLES, RETAIL SALES MODERATED TO 5.2% GROWTH, SLOWER THAN THE 7.8% RISE IN 4Q2005.

ALL THE MAJOR SEGMENTS RECORDED GROWTH IN 1Q2006 OVER 1Q2005, WITH GROWTH RANGING FROM 1.6% TO 18%. THE SEGMENTS WERE TELECOMMUNICATIONS AND COMPUTERS, FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, OPTICAL GOODS AND BOOKS, PROVISION AND SUNDRY SHOPS, DEPARTMENT STORES, SUPERMARKETS, MEDICAL GOODS AND TOILETRIES, RECREATIONAL GOODS, FURNITURE AND HOUSEHOLD EQUIPMENT, WATCHES AND JEWELLERY, AND PETROL SERVICE STATIONS.

A ROSY OUTLOOK FOR RETAILERS

RETAIL SALES IN SINGAPORE ROSE IN JUNE FOR THE 16TH STRAIGHT MONTH AS AN IMPROVING JOB MARKET AND A RISE IN TOURIST ARRIVALS INCREASED CONSUMER SPENDING.

THE RETAIL SALES INDEX GREW BY 5.1% FROM A YEAR EARLIER AFTER EXPANDING BY 13.1% IN MAY. EXCLUDING MOTOR VEHICLES, RETAIL SALES GREW BY 7.8%.

ON A MONTH-ON-MONTH BASIS, ADJUSTED FOR SEASONAL FACTORS, RETAIL SALES IN JUNE DECLINED BY 3.7% OVER MAY. EXCLUDING MOTOR VEHICLES, RETAIL SALES CONTRACTED BY 1.2% FROM MAY.

APPAREL AND FOOTWEAR BUSINESS GREW BY 4.9% WHILE THOSE OF WATCHES AND JEWELLERY ROXE BY 9.5%.

JUNE’S MOTOR VEHICLES SALES GREW BY 2.5% COMPARED WITH JUNE 2005. IT PALE IN COMPARISON WITH A 16.4% GROWTH IN MAY. THE MOTOR VEHICLE SALES GREW BY A MARGINAL 0.4% OVER MAY.

AHEAD

WHOLESALERS PREDICTS POSITIVE BUSINESS CONDITIONS FOR THE PERIOD ENDING DECEMBER 2006. THOSE DEALING IN FURNITURE & FURNISHINGS, COSMETICS & TOILETRIES, JEWELLERY & WATCHES, HOUSEHOLD ELECTRICAL APPLIANCES & EQUIPMENT, ELECTRONIC COMPONENTS, SCIENITIFIC & PRECISION EQUIPMENT, ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

RETAILERS ALSO FORECAST BETTER BUSINESS SENTIMENTS FOR THE COMING MONTHS ENDING DECEMBER 2006, WITH A NET BALANCE OF 22%, ESPECIALLY DEPARTMENT STORES AND RETAILERS OF WEARING APPAREL AND FURNITURE & FURNISHINGS EXPECTING A POSITIVE BUSINESS OUTLOOK FROM THE YEAR-END FESTIVE SHOPPING.

IN ADDITION, RETAILERS ARE EXPECTING A BOOST FROM THE INTERNATONAL MONETARY FUND AND WORLD BANK ANNUAL MEETING IN SEPTEMBER WHICH WILL BE HELD IN SINGAPORE

AS THE GATHERING IS EXPECTED TO DRAW 16,000 OVERSEAS DELEGATES.

EXTRACTED FROM : MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

TODAY

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/normal.	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

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