MIRA INFORM REPORT

Report Date :

06.04.2007

IDENTIFICATION DETAILS

Name :	PAWA BROTHERS TRADING PTE LTD

Registered Office :	^{77 High Street, #02-07, High Street Plaza, Singapore -179433}

Country :	Singapore

Financials (as on) :	31.10.2004

Date of Incorporation :	^24/10/1984

Com. Reg. No.:	^198403799R

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Importer and Exporter of Electronic Home Appliances

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Subject Company

PAWA BROTHERS TRADING PTE LTD

Line Of Business

IMPORTER AND EXPORTER OF ELECTRONIC HOME APPLIANCES

Parent Company

Financial Elements

FY 2004

COMPANY

Sales : S$161,555,321

Networth : S$4,617,165

Paid-Up Capital : S$3,000,000

Net result : S$475,849

Net Margin(%) : 0.29

Return on Equity(%) : 10.31

Leverage Ratio : 6.63

Based on the with the Accounting and Corporate Regulatory Authority (ACRA) as at 02/04/2007, the paid-up share capital has increased to S$4,000,000.

Rating

Credit Rating : Sing $ 1000001 to Sing $ 5000000

COMPANY IDENTIFICATION

^{Subject Company
: PAWA
BROTHERS TRADING PTE LTD}

^{Former Name : -}

^{Business
Address: 77 HIGH STREET}

^#02-07

^{HIGH STREET PLAZA}

^{Town: SINGAPORE}

^{Postcode: 179433}

^{County: -}

^{Country: Singapore}

^{Telephone: 6338
8437}

^{Fax: 6336 1440}

^{ROC Number: 198403799R}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Exempt
Pte Ltd}

^{Date Inc.: 24/10/1984}

^{Previous Legal
Form: --}

^{Summary year
: 31/10/2004}

^{Sales: 161,555,321}

^{Networth : 4,617,165}

^{Capital: 5,000,000}

^{Paid-Up
Capital: 3,000,000}

^{Employees: 25}

^{Net result : 475,849}

^{Share value: 1}

^{AUDITOR: V.
P. KUMARAN & CO}

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

^{NO. OF
SHARES CURRENCY AMOUNT}

^{ISSUED
ORDINARY 4,000,000 SGD 4,000,000.00}

^{PAID-UP
ORDINARY - SGD 4,000,000.00}

REFERENCES

^{Litigation: Yes}

^{Company status
: TRADING}

^{Started : 24/10/1984}

PRINCIPAL(S)

^{JANAK RAJ
PAWA S0595307C Director}

DIRECTOR(S)

^{AVNESH KUMAR
PAWA S1050850I Director}

^{Appointed on : 24/10/1984}

^{Street : 57U
CRESCENT ROAD}

^{Town: SINGAPORE}

^{Postcode: 439369}

^{Country: Singapore}

^{AVNESH KUMAR
PAWA S1050850I Company Secretary}

^{Appointed on : 24/10/1984}

^{Street : 57U CRESCENT ROAD}

^{Town: SINGAPORE}

^{Postcode: 439369}

^{Country: Singapore}

^{PARDEEP KUMAR
PAWA S1198904G Director}

^{Appointed on : 24/10/1984}

^{Street : 97 BRANKSOME ROAD}

^{Town: SINGAPORE}

^{Postcode: 439619}

^{Country: Singapore}

^{JANAK RAJ
PAWA S0595307C
Director}

^{Appointed on : 24/10/1984}

^{Street : 27 LUCKY VIEW}

^{Town: SINGAPORE}

^{Postcode: 467459}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{KRISHNA RANI PAWA
(ESTATE OF) S2066905E}

ACTIVITY(IES)

^{ELECTRONIC
EQUIPMENT And SUPPLIES - DEALERS
Code:7620}

^{TEXTILE
MERCHANTS
Code:21450}

^{COMMODITY
TRADERS
Code:5010}

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

^{1) RETAIL SALE OF
TEXTILES}

^{2) WHOLESALE OF
OTHER SPECIFIC COMMODITIES NEC}

CHARGES

^{Date: 16/05/2006}

^{Comments : CHARGE NO : C200603073}

^{SECURED : 0.00 AND ALL
MONIES OWING}

^{CHARGEE : MALAYAN
BANKING BHD}

^{Date: 07/04/2003 Amount:
250,000}

^{Comments
: CHARGE NO : 9500326 (DISCHARGED -
18/10/1996)}

^{SECURED : S$250,000.00}

^{CHARGEE : INDIAN
OVERSEAS BANK}

^{Date: 07/04/2003 Amount:
500,000}

^{Comments : CHARGE NO : 9104501 (DISCHARGED -
18/10/1996)}

^{SECURED : S$500,000.00}

^{CHARGEE : INDIAN
OVERSEAS BANK}

^{Date: 07/04/2003}

^{Comments : CHARGE NO : C200301518 (DISCHARGED
-14/10/2004))}

^{SECURED : 0.00 AND ALL
MONIES OWING}

^{CHARGEE : BANK OF
INDIA}

^{Date: 10/06/2005}

^{Comments : CHARGE NO: C200503345}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: KBC BANK N.V.}

^{Date: 20/09/2004}

^{Comments : CHARGE NO: 200404643}

^{AMOUNT SECURED: 0.00
AND ALL MONIES OWING}

^{CHARGEE:
OVERSEA-CHINESE BANKING CORPORATION LTD}

^{Date: 27/11/1996}

^{Comments : CHARGE NO : 9607165 (DISCHARGED -
15/08/2002)}

^{SECURED : 0.00 AND ALL
MONIES OWING}

^{CHARGEE(S) : BANQUE
NATIONALE DE PARIS}

^{Date: 19/02/1992}

^{Comments : CHARGE NO : 9200699}

^{SECURED : 0.00
AND ALL MONIES OWING}

^{CHARGEE(S) : UNITED
OVERSEAS BANK LIMITED}

^{Date: 12/04/1994}

^{Comments : CHARGE NO : 9402009}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE(S) : UNITED
OVERSEAS BANK LIMITED}

^{Date: 07/04/2003}

^{Comments : CHARGE NO : C200301517}

^{SECURED : 0.00 AND ALL
MONIES OWING}

^{CHARGEE : BANK OF INDIA}

^{Date: 17/06/2003}

^{Comments : CHARGE NO : C200302840 (DISCHARGED -
03/06/2005)}

^{SECURED : 0.00 AND ALL
MONIES OWING}

^{CHARGEE : STANDARD
CHARTERED BANK}

PREMISES/PROPERTY INFORMATIONS

^{Date: 05/04/2007 Tax
rate: 10}

^{Site Address
: 77 HIGH STREET}

^{#02-07 HIGH ST PLAZA}

^{HIGH STREET PLAZA}

^{Town: SINGAPORE} ^{Postcode: 179433}

^{Country: Singapore}

^{Annual Value: 11,800}

* TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

* TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY

RENTED OUT BY THE OWNER/OWNED BY COMPANY.

* FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT,

THE TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

*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}

^{INDIAN OVERSEAS
BANK}

^{BANK OF INDIA}

^{BANQUE NATIONALE
DE PARIS}

^{STANDARD CHARTERED
BANK}

^{KBC BANK N.V.}

^{OVERSEA-CHINESE
BANKING CORPORATION LIMITED}

^{BANK OF INDIA}

SHAREHOLDERS(S)

^{JANAK RAJ
PAWA
1,000,000 Private Person}

^{Street : 27
LUCKY VIEW}

^{Town: SINGAPORE}

^{Postcode: 467459}

^{Country: Singapore}

^{AVNESH KUMAR
PAWA
1,125,000 Private Person}

^{Street : 57U
CRESCENT ROAD}

^{Town: SINGAPORE}

^{Postcode: 439369}

^{Country: Singapore}

^{PARDEEP KUMAR
PAWA
1,125,000 Private Person}

^{Street : 97 BRANKSOME ROAD}

^{Town: SINGAPORE}

^{Postcode: 439619}

^{Country: Singapore}

^{KRISHNA RANI PAWA (ESTATE
OF) 750,000 Private Person}

^{Street : 27
LUCKY VIEW}

^{Town: SINGAPORE}

^{Postcode: 467459}

^{Country: Singapore}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : UNKNOWN

Payments : UNKNOWN

Trend : UNKNOWN

Financial Situation: UNKNOWN

LITIGATION(S)

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS09117/2006}

Defendant PAWA BROTHERS TRADING PTE LTD ROC # : 198403799R

FINANCIAL ELEMENTS

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

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

^{Date
Account Lodged: 24/05/2005}

^{Balance
Sheet Date: 31/10/2004 31/10/2003 31/10/2002}

^{Number
of weeks: 52 52 52}

^{Consolidation
Code: COMPANY COMPANY
COMPANY}

^{--- ASSETS}

^{Preliminary
Exp 7,637 15,279 31,988}

^{Tangible
Fixed Assets: 1,967,820 2,085,606 2,023,142}

^{Investments 1,110,358 1,166,058 2,045,544}

^{Total
Fixed Assets: 3,085,815 3,266,943 4,100,674}

^{Inventories: 7,171,607 6,196,859 4,714,199}

^{Receivables: 20,649,838 15,491,801 13,828,042}

^{Cash,Banks,
Securitis: 4,241,859 2,077,344 1,775,734}

^{Other
current assets: 66,004 52,100 3,000,727}

^{Total
Current Assets: 32,129,308 23,818,104 23,318,702}

^{TOTAL ASSETS: 35,215,123 27,085,047
27,419,376}

^{--- LIABILITIES}

^{Equity
capital: 3,000,000 3,000,000 3,000,000}

^{Profit
& loss Account:
1,617,165
1,391,616
1,131,392}

^{TOTAL
EQUITY: 4,617,165 4,391,616 4,131,392}

^{L/T
deffered taxes:
39,847 39,847 8,338}

^{Other
long term Liab.: 1,303,997 1,005,306 896,755}

^{Total
L/T Liabilities: 1,343,844 1,045,153 905,093}

^{Trade
Creditors: 14,706,462 12,740,942 14,156,412}

^{Short
term liabilities: 61,676 61,676 -}

^{Due
to Bank:
13,959,485
8,372,157           7,827,508}

^{Provisions: 345,342 291,072 287,319}

^{Other
Short term Liab.: 181,149 182,431 111,652}

^{Total
short term Liab.: 29,254,114 21,648,278 22,382,891}

^{TOTAL LIABILITIES: 30,597,958 22,693,431 23,287,984}

PROFIT & LOSS ACCOUNT

^{Net
Sales
161,555,321
149,891,917
131,443,576}

^{Gross
Profit: - 2,497,732
2,268,285}

^{Result
of ordinary operations 1,078,594 838,805 528,262}

^{NET
RESULT BEFORE TAX:
650,438 527,138 275,337}

^{Tax
: 174,589 66,914
96,052}

^{Net
income/loss year:
475,849 460,224 179,285}

^{Interest
Paid: 90,179 78,909 105,075}

^{Depreciation: -
136,536 96,376}

^{Dividends: 250,000 200,000 -}

^{Directors
Emoluments: - 152,272 148,000}

^{Financial
Income: 26,776 14,197 15,285}

RATIOS

^{31/10/2004 31/10/2003 31/10/2002}

^{Turnover
per employee: 6462212.84 5995676.68 5257743.04}

^{Stock
/ Turnover(%): 0.04 0.04 0.04}

^{Net
Margin(%): 0.29 0.31 0.14}

^{Return
on Equity(%): 10.31 10.48 4.34}

^{Return
on Assets(%): 1.35 1.70 0.65}

^{Dividends
Coverage: 1.90 2.30 2.30}

^{Net
Working capital: 2875194.00 2169826.00 935811.00}

^{Cash
Ratio: 0.15 0.10 0.08}

^{Quick
Ratio: 0.85 0.81 0.70}

^{Current
ratio: 1.10 1.10 1.04}

^{Receivables
Turnover: 46.01 37.21 37.87}

^{Leverage
Ratio: 6.63 5.17 5.64}

^{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

^{THE FINANCIAL
STATEMENTS FOR THE YEAR 2004 IS OUTDATED. HENCE, AN ADVERSE CHECK ON THE
DIRECTORS IS CONDUCTED.}

^{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 RECORDS.}

BACKGROUND/OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 24/10/1984 AS A LIMITED EXEMPT
PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "PAWA
BROTHERS TRADING PTE LTD".}

^{AS AT 02/04/2007,
THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 4,000,000 SHARES OF A VALUE OF
S$4,000,000.}

^{PRINCIPAL
ACTIVITIES:}

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

^{1) RETAIL SALE OF
TEXTILES}

^{2) WHOLESALE OF
OTHER SPECIFIC COMMODITIES NEC}

^{DURING THE
FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF
IMPORTERS AND EXPORTERS OF ELECTRONIC GOODS.}

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

^{SUBJECT ENGAGES IN
THE FOLLOWING ACTIVITIES:}

^{* IMPORTER AND
EXPORTER OF ELECTRONIC HOME APPLIANCES}

^{PRODUCTS DEALINGS:}

^{* COLOUR TV}

^{* HIFI SYSTEM}

^{* CAMERA}

^{* TELEPHONE}

^{* MICROWAVE OVEN}

^{* BLANDER}

^{* IRON}

^{* RADIO CASSTTE
RECORDER}

^{* REFRIGERATOR}

^{* DVD PLAYER}

^{* DVD RECORDER}

^{* KEYBOAD}

^{* PLASMA TV}

^{* LCD TV}

^{* VIDEO CASSETTE}

^{* AUDIO CASSETTE
WALKMAN}

^{* MICRO CASSETTE
RECORDER}

^BRANDS:

^{* SONY}

^{* PANASONIC}

^{* KENWOOD}

^{* JVC}

^{* PIONEER}

^{* PHILIPS}

^{* LG ELECTRONICS}

^{* SHARP}

^MARKETS:

^{* MIDDLE EAST}

^{* SOUTH EAST ASIA}

^{* EUROPE}

^{* USA}

^{* LATIN AMERICA}

^{* CARIBBEAN}

^{FINANCIAL
INFORMATION :}

^{* THEIR GROUP TURNOVER
HAS TOUCHED A WHOPPING SGD 183 MILLION DURING 2003-2004, AND THEY ARE TARGETING
A GROUP TURNOVER OF SGD 200 MILLION FOR THE CURRENT FINANCIAL YEAR.}

^{FUTURE PLANS}

^{* ALSO PLANNING TO
DIVERSIFY AND ARE ACTIVELY CONSIDERING PROJECTS. THEY AIM TO BE ONE OF THE
LEADING BUSINESS HOUSE IN THE NEXT FIVE YEARS}

^{TERMS OF PAYMENT:}

^{* TRADE AND OTHER
RECEIVABLES: 30-90 DAYS TERM}

^{* TRADE AND OTHER
PAYABLES : 30-90 DAYS TERM}

^{FROM THE
TELE-INTERVIEW CONDUCTED ON 05/04/2007, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF
EMPLOYEES:}

^{* COMPANY - 2007:
25}

^{NO OTHER TRADE
INFORMATION IS AVAILABLE ON 05/04/2007.}

^{NUMBER OF
EMPLOYEES (31 OCTOBER):}

^{* COMPANY - 2004 :
12 (2003 : 14)}

^{* GROUP - 2004 : -
(2003 : -)}

^{REGISTERED AND
BUSINESS ADDRESS:}

^{77 HIGH STREET}

^{#04-05 HIGH STREET
PLAZA}

^{SINGAPORE 179433}

^{- OWNED BY THE
DIRECTORS AND SHAREHOLDERS: JANAK RAJ PAWA, AVNESH KUMAR PAWA,}

^{PARDEEP KUMAR PAWA, KRISHNA RANI PAWA}

^{- DATE OF CHANGE
OF ADDRESS: -}

^{- OFFICE}

^{OTHER BUSINESS
ADDRESS:}

^{77 HIGH STREET}

^{#02-07 HIGH STREET
PLAZA}

^{SINGAPORE 179433}

^{- OWNED PREMISE}

^{- MAIN OFFICE}

^WEBSITE:

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

^EMAIL:

^{vinod@pawa.com.sg}

MANAGEMENT

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

^{1) JANAK RAJ PAWA,
A SINGAPOREAN}

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

^{ELECTRONIC STUDIO PTE LTD}

^{2) AVNESH KUMAR
PAWA, A SINGAPOREAN}

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

^{ELECTRONIC STUDIO PTE LTD}

^{3) PARDEEP KUMAR
PAWA, A SINGAPOREAN}

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

^{ELECTRONIC STUDIO PTE LTD}

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME:
JANAK RAJ PAWA}

^{ADVERSE REPORT
AGAINST DIRECTOR: NIL}

^{PROPERTY
OWNERSHIP: OWNS 2}

^{ANNUAL VALUE:
S$8,300 (77 HIGH ST #04-05)}

^{CO-OWNER (S): KRISHNA
RANI PAWA, PARDEEP KUMAR PAWA, AVNESH KUMAR PAWA}

^{ANNUAL VALUE:
S$33,600 (27 LUCKY VIEW)}

^{CO-OWNER (S): NIL}

^{DIRECTOR'S NAME:
AVNESH KUMAR PAWA}

^{ADVERSE REPORT
AGAINST DIRECTOR: NIL}

^{PROPERTY
OWNERSHIP: OWNS 2}

^{ANNUAL VALUE:
S$8,300 (77 HIGH ST #04-05)}

^{CO-OWNER (S):
KRISHNA RANI PAWA, PARDEEP KUMAR PAWA, JANAK RAJ PAWA}

^{ANNUAL VALUE:
S$39,600 (57U CRESCENT RD)}

^{CO-OWNER (S):
PARDEEP KUMAR PAWA}

^{DIRECTOR'S NAME:
PARDEEP KUMAR PAWA}

^{ADVERSE REPORT
AGAINST DIRECTOR: NIL}

^{PROPERTY
OWNERSHIP: OWNS 2}

^{ANNUAL VALUE:
S$8,300 (77 HIGH ST #04-05)}

^{CO-OWNER (S):
KRISHNA RANI PAWA, AVNESH KUMAR PAWA, JANAK RAJ PAWA}

^{ANNUAL VALUE:
S$39,600 (57U CRESCENT RD)}

^{CO-OWNER (S):
AVNESH KUMAR PAWA}

^{* 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 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