MIRA INFORM REPORT

Report Date :

06.04.2007

IDENTIFICATION DETAILS

Name :	NISSEI ASB PTE. LTD.
Registered Office :	^16A Science Park Drive, #04-04, The Pascal, Singapore - 118228
Country :	^Singapore
Financials (as on) :	30.09.2006
Date of Incorporation :	^10/04/1993
Com. Reg. No.:	^199302205K
Legal Form :	^Pte Ltd
Line of Business :	Sales and Marketing of Moulding Machines and related parts and accessories

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear

Subject Company

NISSEI ASB PTE. LTD.

Line Of Business

SALES AND MARKETING OF MOULDING MACHINES AND RELATED PARTS AND ACCESSORIES

Parent Company

NISSEI ASB MACHINE CO., LTD

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

CONSOLIDATED

Sales : YEN2,634,808,000

Networth : YEN919,617,000

Paid-Up Capital : YEN34,452,000

Net result : YEN130,281,000

Net Margin(%) : 4.94

Return on Equity(%) : 14.17

Leverage Ratio : 0.98

Rating

Credit Rating : Sing $ 10000001 to Sing $ 50000000

COMPANY IDENTIFICATION

^{Subject Company: NISSEI ASB PTE. LTD.}

^{Former Name: -}

^{Business Address: 16A SCIENCE PARK DRIVE}

^#04-04

^{THE PASCAL}

^{Town: SINGAPORE}

^{Postcode: 118228}

^{County: -}

^{Country: Singapore}

^{Telephone: 6778 4633}

^{Fax: 6778 9440}

^{ROC Number: 199302205K}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 10/04/1993}

^{Previous Legal Form: --}

^{Summary year: 30/09/2006}

^{Sales: 2,634,808,000}

^{Net worth: 919,617,000}

^{Capital: --}

^{Paid-Up Capital: 34,452,000}

^{Employees: Not Available}

^{Net result: 130,281,000}

^{Share value: --}

^{Auditor: DELOITTE & TOUCHE}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 10/04/1993}

PRINCIPAL(S)

^{JIRO MIYASHITA S2733996D Managing Director}

DIRECTOR(S)

^{JIRO MIYASHITA S2733996D Managing Director}

^{Appointed on: 01/04/1997}

^{Street: 57 CAIRNHILL ROAD}

^#04-11

^{ELIZABETH HEIGHT}

^{Town: SINGAPORE}

^{Postcode: 229668}

^{Country: Singapore}

^{TAN CHENG SIEW @ NUR FARAH TAN S6920790A Company Secretary}

^{Appointed on: 15/05/2000}

^{Street: 97 BEDOK NORTH AVENUE 4}

^#20-1513

^{Town: SINGAPORE}

^{Postcode: 460097}

^{Country: Singapore}

^{KOH KWEE FONG S1642303C Director}

^{Appointed on: 20/12/2001}

^{Street: 661D JURONG WEST STREET 64}

^#11-448

^{Town: SINGAPORE}

^{Postcode: 644661}

^{Country: Singapore}

^{JIRO MIYASHITA S2733996D Director}

^{Appointed on: 03/05/1993}

^{Street: 57 CAIRNHILL ROAD}

^#04-11

^{ELIZABETH HEIGHT}

^{Town: SINGAPORE}

^{Postcode: 229668}

^{Country: Singapore}

^{KOTA AOKI TG4886351 Director}

^{Appointed on: 01/09/2005}

^{Street: 1-4-5 MIDORIGAOKA, UEDA-SHI}

^NAGANO-KEN

^{Town: -}

^{Postcode: 386-0022}

^{Country: Japan}

FORMER DIRECTOR(S)

^{HELEN CAMPOS THOMAS S1318008C}

^{TAKEHIRO SAITO TF3269260}

^{ARAKI KOTARO F2043948M}

^{OSAMU ONISHI MP5713073}

^{SHIGEO YOSHIZAWA F5524155N}

ACTIVITY(IES)

^{MACHINERY Code:13260}

^{PLASTICS - MACHINERY And EQUIPMENT Code:16990}

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD AS AT 02/04/2007}

^{1) WHOLESALE OF MACHINERY AND EQUIPMENT; MANUFACTURE PLASTIC PRODUCTS}

CHARGES

^{Date: 23/10/2000}

^{Comments: CHARGE NO: 200005004 (DISCHARGED)}

^{CHARGEE(S): THE SUMITOMO BANK}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{SUMITOMO MITSUI BANKING CORPORATION}

SHAREHOLDERS(S)

^{NISSEI ASB MACHINE CO., LTD 500,000 Company}

^{Street: 4586-3 KOO, KOMORO-SHI}

^NAGANO-KEN

^{384-8585 JAPAN}

^{Town: JAPAN}

^{Postcode: -}

^{Country: Japan}

HOLDING COMPANY

^{NISSEI ASB MACHINE CO., LTD UF10187K %: 100}

SUBSIDIARY(IES)

^{NISSEI ASB SOUTH AFRICA (PROPRIETARY) LIMITED}

^{SOUTH AFRICA}

^{ASB PTE (THAILAND) CO. LTD}

^THAILAND

^{PT ASB INDONESIA}

^INDONESIA

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

^{Liquidity: SUFFICIENT}

Payments: REGULAR

Trend: DOWNWARD

Financial Situation: AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 13/03/2007}

^{Balance Sheet Date: 30/09/2006 30/09/2005 30/09/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED CONSOLIDATED}

^{--- ASSETS}

^{Preliminary Exp 33,948,000 94,264,000 1,687,198}

^{Tangible Fixed Assets: 24,654,000 24,718,000 472,747}

^{Investments - - 1}

^{Total Fixed Assets: 58,602,000 118,982,000 2,159,946}

^{Inventories: 151,900,000 112,094,000 1,293,866}

^{Receivables: 606,375,000 253,849,000 8,314,433}

^{Short Term Fin. Assets: 3,110,000 - -}

^{Cash,Banks,Securities: 957,900,000 1,133,908,000 17,379,024}

^{Other current assets: 38,963,000 38,337,000 626,727}

^{Total Current Assets: 1,758,248,000 1,538,188,000 27,614,050}

^{TOTAL ASSETS: 1,816,850,000 1,657,170,000 29,773,996}

^{--- LIABILITIES}

^{Equity capital: 34,452,000 34,452,000 500,000}

^{Reserves: 28,859,000 11,548,000 371,394}

^{Profit & loss Account: 856,306,000 859,365,000 9,365,405}

^{Total Equity: 919,617,000 905,365,000 10,236,799}

^{Other long term Liab.: 6,792,000 3,695,000 136,295}

^{Total L/T Liabilities: 6,792,000 3,695,000 136,295}

^{Trade Creditors: 591,232,000 604,391,000 16,798,451}

^{Short term liabilities: 3,228,000 5,293,000 90,377}

^{Provisions: 14,746,000 74,290,000 1,281,271}

^{Other Short term Liab.: 281,235,000 64,136,000 1,230,803}

^{Total short term Liab.: 890,441,000 748,110,000 19,400,902}

^{TOTAL LIABILITIES: 897,233,000 751,805,000 19,537,197}

PROFIT & LOSS ACCOUNT

^{Net Sales 2,634,808,000 3,741,076,000 58,949,664}

^{Purchases,Sces & Other Goods: 2,128,254,000 3,079,732,000 -}

^{Gross Profit: 506,554,000 661,344,000 10,419,256}

^{Result of ordinary operations 190,193,000 324,662,000 4,093,860}

^{NET RESULT BEFORE TAX: 189,180,000 323,825,000 4,080,623}

^{Tax: 58,899,000 67,230,000 708,420}

^{Net income/loss year: 130,281,000 256,595,000 3,372,203}

^{Interest Paid: 1,013,000 837,000 13,237}

^{Depreciation: 13,984,000 14,688,000 207,641}

^{Dividends: 133,340,000 15,189,000 240,000}

^{Directors Emoluments: 25,558,000 36,424,000 563,589}

^{Wages and Salaries: 109,904,000 100,815,000 1,503,514}

RATIOS

^{30/09/2006 30/09/2005 30/09/2004}

^{Net result / Turnover(%): 0.05 0.07 0.06}

^{Stock / Turnover(%): 0.06 0.03 0.02}

^{Net Margin(%): 4.94 6.86 5.72}

^{Return on Equity(%): 14.17 28.34 32.94}

^{Return on Assets(%): 7.17 15.48 11.33}

^{Dividends Coverage: 0.98 16.89 14.05}

^{Net Working capital: 867807000.00 790078000.00 8213148.00}

^{Cash Ratio: 1.08 1.52 0.90}

^{Quick Ratio: 1.76 1.86 1.32}

^{Current ratio: 1.97 2.06 1.42}

^{Receivables Turnover: 82.85 24.43 50.78}

^{Leverage Ratio: 0.98 0.83 1.91}

^{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

^NOTE:

^{THE FINANCIAL STATEMENTS FOR 2003 ARE PRESENTED IN SGD, WHILE THE FINANCIAL STATEMENTS FOR 2004 AND 2005 ARE PRESENTED IN YEN.}

^{THE FINANCIAL CONDITION OF THE GROUP WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 1.57% FROM YEN 905,365,000 IN 2005 TO YEN 919,617,000 IN 2006.}

^{THIS WAS DUE TO THE HIGHER TRANSLATION RESERVE OF YEN28,859,000 (2005: YEN11,548,000), A RISE OF 1.50 TIMES FROM THE PRIOR FINANCIAL YEAR.}

^{RETAINED EARNINGS, HOWEVER, FELL BY 0.36% TO YEN856,306,000 (2005: YEN859,365,000).}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 66.40% (2005: 80.79%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO YEN591,232,000 (2005: YEN604,391,000). THE BREAKDOWN IS AS FOLLOWS:}

^{-HOLDING COMPANY - 2006: YEN566,035,000 (2005: YEN390,045,000)}

^{-RELATED COMPANIES - 2006: YEN22,276,000 (2005: YEN58,789,000)}

^{-OUTSIDE PARTIES - 2006: YEN2,921,000 (2005: YEN155,557,000)}

^{SUBJECT'S LONG TERM LIABILITY, WHICH CONSIST OF FINANCE LEASES, ROSE BY 83.82% TO YEN6,792,000 (2005: YEN3,695,000).}

^{IN ALL, LEVERAGE RATIO ROSE FROM 0.83 TIMES TO 0.98 TIMES AS A RESULT OF A RISE IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 9.84% TO YEN867,807,000 (2005: YEN790,078,000).}

^{HOWEVER, CURRENT RATIO FELL TO 1.97 TIMES, DOWN FROM 2.06 TIMES AND QUICK RATIO DECREASED TO 1.76 TIMES FROM 1.86 TIMES IN 2005.}

^{PROFITABILITY:}

^{REVENUE POSTED A DECREASE OF 29.57% FROM YEN3,741,076,000 IN 2005 TO YEN2,634,808,000 AND NET PROFIT DROPPED BY 49.23% TO YEN256,595,000}

^{(2005: YEN130,281,000).}

^{HENCE, NET MARGIN FELL TO 4.94% (2005: 6.86%).}

^REVENUE:

^{-SALES OF GOODS - 2006: YEN2,613,269,000 (2005: YEN3,731,645,000)}

^{-COMMISSION INCOME - 2006: YEN21,539,000 (2005: YEN9,431,000)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, ITS INTEREST COVERAGE WAS HEALTHY AS SHOWN BY ITS INTEREST COVERAGE RATIO OF 187.75 TIMES (2005: 387.89 TIMES).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-LONG TERM TRADE RECIEVABLES - 2006: YEN33,948,000 (2005: YEN76,026,000)}

^{-DEFERRED TAX ASSET - 2006: - (2005: YEN18,238,000)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITIES}

^{PERFORMANCE GUARATEES (SECURED) - 2006: YEN21,066,000 (2005: YEN47,511,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 10/04/1993 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER THE PRESENT NAMESTYLE AS "NISSEI ASB PTE. LTD."}

^{AS AT 02/04/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF500,000 SHARES, OF A VALUE OF S$500,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF MACHINERY AND EQUIPMENT; MANUFACTURE PLASTIC PRODUCTS}

^{2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY AND ITS SUBSIDIARIES ARE THOSE OF SALES AND MARKETING OF MOULDING MACHINES AND RELATED PARTS AND ACCESSORIES.}

^{FROM THE RESEARCH DONE, SUBJECT IS IN THE TRADING OF STRETCH BLOW INJECTION MACHINES FOR MAKING OF PLASTIC CONTAINER.}

^{BRAND NAMES:}

^{*ASB--INJECTION STRETCH BLOW MOULDING MACHINES}

^{SUBJECT HAS FOREIGN BRANCHES IN INDIA AND DUBAI, UNITED ARAB EMIRATES}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 05/04/2007.}

^{THE COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF NISSEI ASB MACHINE CO. LTD, INCORPORATED IN JAPAN WHICH IS ALSO THE COMPANY'S ULTIMATE HOLDING COMPANY.}

^{NUMBER OF EMPLOYEES:}

^{*GROUP - 2006/5: NOT AVAILABLE (2004: 47; 2003: 42; 2002: 42; 2001: 43; 2000: 41)}

^{*COMPANY - 2006/5: NOT AVAILABLE (2004: NOT AVAILABLBE; 2003: 36; 2002: 37; 2001: 38; 2000: 37)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{16A SCIENCE PARK DRIVE}

^#04-04

^{THE PASCAL}

^{SINGAPORE 118228}

^{DATE OF CHANGE OF ADDRESS: 01/07/1993}

^{- RENTED PREMISE}

^{- OWNED BY: ASCENDAS LAND (SINGAPORE) PTE LTD}

^WEBSITE:

^{www.nisseiasb.co.jp (HOLDING COMPANY'S)}

^EMAIL:

^{asbsin@singnet.com.sg}

MANAGEMENT

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

^{1) JIRO MIYASHITA, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{2) KOTA AOKI, A JAPANESE}

^{- BASED IN JAPAN.}

^{3) KOH KWEE FONG, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

Singapore’s Country Rating 2006

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.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

DOMESTIC WHOLESALE TRADE INDEX

DOMESTIC WHOLESALE TRADE IN 4Q 2006 HAS DECLINED BY 6.9%. EXCLUDING PETROLEUM, DOMESTIC SALES REMAINED AT SIMILAR LEVEL COMPARED TO THE PREVIOUS QUARTER.

GENERAL WHOLESALE TRADE POSTED THE LARGEST SALES DECREASE OF 16.6%, FOLLOWED BY THE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS OF 15.7% AND HOUSEHOLD EQUIPMENT AND FURNITURE OF 13.2%.

SECTORS OF INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS REGISTERED GROWTHS OF 17.0% AND 12.3%, RESPECTIVELY.

FOREIGN WHOLESALE TRADE INDEX

ON A QUARTER-TO-QUARTER BASIS, OVERALL FOREIGN WHOLESALE TRADE CONTRACTED BY 7.9% IN 4Q 2006 AFTER TWO QUARTERS OF POSITIVE GROWTH. FOREIGN SALES WENT DOWN BY 1.6%, EXCLUDING PETROLEUM.

THE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS AND ELECTRONIC COMPONENTS MARKED LOWER OVERSEAS SALE OF 14.2% AND 11.6% RESPECTIVELY IN 4Q 2006 OVER 3Q 2006.

RETAIL TRADE

IN GENERAL, RETAIL SALES GREW BY 7.9% IN 4Q 2006, UP FROM THE 5.2% IN THE PREVIOUS QUARTER. THIS BROUGHT FULL YEAR GROWTH FOR 2006 TO 6.9%, DOWN FROM 9.0% IN 2005. EXCLUDING MOTOR VEHICLE SALES, RETAIL SALES ROSE 4.1%, SLOWING FROM THE 7.2% GAIN IN THE PREVIOUS YEAR.

MOST RETAIL SECTORS REPORTED BRISK BUSINESS IN DEC. 2006. SALES OF RECREATIONAL GOODS, DEPARTMENT STORES, WEARING APPAREL AND FOOTWEAR, FURNITURE AND HOUSEHOLD EQUIPMENT, WATCHES AND JEWELLERY CLIMBED BY 36.6% TO 44.2% IN DEC. 2006 COMPARED TO THE PREVIOUS MONTH.

LIKEWISE, RETAILERS OF OPTICAL GOODS AND BOOKS, TELECOMMUNICATIONS APPARATUS AND COMPUTERS, FOOD AND BEVERAGES, MEDICAL GOODS AND TOILETRIES AND SUPERMARKETS ENJOYED GROWTH BETWEEN 12.7% TO 26.0%.

OUTLOOK

FOR WHOLESALE TRADE, A NET WEIGHTED BALANCE OF 11% OF FIRMS ANTICIPATES BUSINESS TO BE LESS BRISK FOR COMING MONTHS. THOSE DEALING IN JEWELLERY AND WATCHES, INDUSTRIAL MACHINERY AND EQUIPMENT, TELECOMMUNICATIONS EQUIPMENT AND ELECTRONIC COMPONENTS ARE AMONG THOSE WHO FORESEE SLOWER BUSINESS IN THE COMING MONTHS.

FOR RETAILERS, A NET WEIGHTED BALANCE OF 8%, FORECAST THE BUSINESS CONDITIONS TO IMPROVE IN THE NEXT SIX MONTHS. DEPARTMENT STORES OWNERS AND RETAILERS OF FURNITURE AND FURNISHINGS ARE OPTIMISTIC ABOUT THE BUSINESS PROSPECTS.

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

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