MIRA INFORM REPORT

Report Date :

19.04.2007

IDENTIFICATION DETAILS

Name :	MARUBENI SINGAPORE PTE LTD
Registered Office :	^16 Raffles Quay, #13-00, Hong Leong Building, Singapore - 048581
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^23/02/1991
Com. Reg. No.:	^199100806H
Legal Form :	^Pte Ltd
Line of Business :	Marketing, Import and Export of Goods and Services and as general contractors

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 :	Regular
Litigation :	Clear

Subject Company

MARUBENI SINGAPORE PTE LTD

Line Of Business 

MARKETING, IMPORT AND EXPORT OF GOODS AND SERVCIES AND AS GENERAL CONTRACTORS

Parent Company

MARUBENI CORPORATION

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2005

COMPANY

Sales : USD401,723,000

Networth : USD20,566,000

Paid-Up Capital : USD39,923,000

Net result : USD2,544,000

Net Margin(%) : 0.63

Return on Equity(%) : 12.37

Leverage Ratio : 3.33

COMPANY IDENTIFICATION

^{Subject Company: MARUBENI SINGAPORE PTE LTD}

^{Former Name: -}

^{Business Address: 16 RAFFLES QUAY}

^#13-00

^{HONG LEONG BUILDING}

^{Town: SINGAPORE}

^{Postcode: 048581}

^{County: -}

^{Country: Singapore}

^{Telephone: 6220 4111}

^{Fax: 6225 3051}

^{ROC Number: 199100806H}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 23/02/1991}

^{Previous Legal Form: -}

^{Summary year: 31/12/2005}

^{Sales: 401,723,000}

^{Net worth: 20,566,000}

^{Capital: 46,041,000}

^{Paid-Up Capital: 39,923,000}

^{Employees: 50}

^{Net result: 2,544,000}

^{Share value: -}

^{Auditor: ERNST & YOUNG}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 23/02/1991}

PRINCIPAL(S)

^{HISASHI SUNAOSHI G0462368T Managing Director}

DIRECTOR(S)

^{YOSHIYUKI MINAGAWA G5743183R Director}

^{Appointed on: 01/04/2004}

^{Street: 3 TAMAN NAKHODA}

^#03-05

^{HOLLAND GEMS}

^{Town: SINGAPORE}

^{Postcode: 257744}

^{Country: Singapore}

^{SOICHIRO YANASE G5699011P Company Secretary}

^{Appointed on: 28/09/2004}

^{Street: 263 RIVER VALLEY ROAD}

^#10-19

^{ASPEN HEIGHTS}

^{Town: SINGAPORE}

^{Postcode: 238309}

^{Country: Singapore}

^{HISASHI SUNAOSHI G0462368T Director}

^{Appointed on: 01/04/2006}

^{Street: 11 UNITY STREET}

^#07-10

^{Town: SINGAPORE}

^{Postcode: 237995}

^{Country: Singapore}

^{HISASHI SUNAOSHI G0462368T Managing Director}

^{Appointed on: 01/04/2006}

^{Street: 11 UNITY STREET}

^#07-10

^{Town: SINGAPORE}

^{Postcode: 237995}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{CHIA LUANG CHEW HAZEL S1407126A}

^{MIYAZAKI JUJI SH5019177}

^{KOMATSU ICHIRO SK3104245}

^{SEGAWA TAKAHARU SL9002010}

^{TAKESHITA MASAHIRO SL9002320}

^{NORIO YAMAOKA MN9366107}

^{TSUCHITANI ITSURO SM9110390}

^{TAKEOMI HATO MN9224845}

^{KIYOSHI KOBAYASHI TZ0147818}

^{YOSHIHIRO ISHIHARA F5585841P}

^{AKIRA KASE F5634235N}

^{YOSHIHIRO KITAHARA G5699003N}

^{HIDEHISA SAITO G5742900W}

^{MASAHARU NASHIMOTO G5589290W}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{REAL ESTATE DEVELOPERS Code:18090}

^{BASED ON ACRA'S RECORD AS AT 16/04/2007}

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

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE BANK OF TOKYO-MITSUBISHI UFJ, L}

^{OVERSEAS UNION BANK LIMITED}

^{DBS BANK LTD.}

ASSOCIATED COMPANY(IES)

^{MARUBENI CHEMICAL ASIA PACIFIC PTE}

^{16 RAFFLES QUAY}

^#13-01

^{HONG LEONG BUILDING}

^{SINGAPORE Singapore}

^{MARUBENI INTERNATIONAL COMMODITIES}

^{16 RAFFLES QUAY}

^#18-02

^{HONG LEONG BUILDING}

^{SINGAPORE Singapore}

^{SPRING GROVE DEVELOPMENT PTE LTD}

^{36 ROBINSON ROAD}

^#20-01

^{CITY HOUSE}

^{SINGAPORE Singapore}

SHAREHOLDERS(S)

^{MARUBENI CORPORATION 67,000,000 Company}

^{Street: 4-2 OHTEMACHI 1-CHOME}

^CHIYODA-KU

^{Town: TOKYO}

^{Postcode: 100-8088}

^{Country: Japan}

FORMER SHAREHOLDER(S)

^{KOMATSU ICHIRO 1}

^{TSUCHITANI ITSURO 1}

HOLDING COMPANY

^{MARUBENI CORPORATION UF06629H %: 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: UPWARD}

^{Financial Situation: AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 30/05/2006}

^{Balance Sheet Date: 31/12/2005 31/12/2004 31/12/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 757,000 777,000 -}

^{Tangible Fixed Assets: 222,000 221,000 354,000}

^{Investments 658,000 658,000 5,496,000}

^{Total Fixed Assets: 1,637,000 1,656,000 5,850,000}

^{Inventories: 5,509,000 9,098,000 7,370,000}

^{Receivables: 50,520,000 38,909,000 41,741,000}

^{Cash,Banks,Securities: 7,266,000 1,025,000 9,790,000}

^{Other current assets: 24,063,000 19,343,000 4,044,000}

^{Total Current Assets: 87,358,000 68,375,000 62,945,000}

^{TOTAL ASSETS: 88,995,000 70,031,000 68,795,000}

^{--- LIABILITIES}

^{Equity capital: 39,923,000 39,923,000 39,958,000}

^{Profit & loss Account: -19,357,000 -21,901,000 -23,469,000}

^{Total Equity: 20,566,000 18,022,000 16,489,000}

^{Reserve for pensions: 128,000 114,000 188,000}

^{Total L/T Liabilities: 128,000 114,000 188,000}

^{Trade Creditors: 54,632,000 26,489,000 26,895,000}

^{Prepay. & Def. charges: 358,000 308,000 -}

^{Due to Bank: 11,124,000 23,461,000 22,498,000}

^{Provisions: 28,000 28,000 -}

^{Other Short term Liab.: 2,159,000 1,609,000 2,725,000}

^{Total short term Liab.: 68,301,000 51,895,000 52,118,000}

^{TOTAL LIABILITIES: 68,429,000 52,009,000 52,306,000}

PROFIT & LOSS ACCOUNT

^{Net Sales 401,723,000 338,154,000 276,370,000}

^{Purchases,Sces & Other Goods: 399,034,000 334,328,000 -}

^{Gross Profit: 2,689,000 3,826,000 -}

^{Result of ordinary operations 3,135,000 2,288,000 1,657,000}

^{NET RESULT BEFORE TAX: 2,539,000 1,568,000 1,256,000}

^{Tax: -5,000 - -}

^{Net income/loss year: 2,544,000 1,568,000 1,256,000}

^{Interest Paid: 596,000 646,000 401,000}

^{Depreciation: 130,000 183,000 218,000}

^{Directors Emoluments: 641,000 322,000 336,000}

^{Wages and Salaries: 2,266,000 2,451,000 -}

^{Financial Income: 85,000 43,000 48,000}

RATIOS

^{31/12/2005 31/12/2004 31/12/2003}

^{Turnover per employee: 8034460.00 6763080.00 5527400.00}

^{Net result / Turnover(%): 0.01 0.00 0.00}

^{Stock / Turnover(%): 0.01 0.03 0.03}

^{Net Margin(%): 0.63 0.46 0.45}

^{Return on Equity(%): 12.37 8.70 7.62}

^{Return on Assets(%): 2.86 2.24 1.83}

^{Net Working capital: 19057000.00 16480000.00 10827000.00}

^{Cash Ratio: 0.11 0.02 0.19}

^{Quick Ratio: 0.85 0.77 0.99}

^{Current ratio: 1.28 1.32 1.21}

^{Receivables Turnover: 45.27 41.42 54.37}

^{Leverage Ratio: 3.33 2.89 3.17}

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 14.12% FROM US$18,022,000 IN FY 2004 TO US$20,566,000 IN FY 2005. THIS WAS DUE TO LOWER ACCUMULATED LOSS OF US$19,357,000 (2004: US$-21,901,000); A DECLINE OF 11.62% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 79.99% (2004: 51.04%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$54,632,000 (2004: US$26,489,000). THE BREAKDOWN IS AS FOLLOWS:}

^{TRADE PAYABLES AND BILLS PAYABLE}

^{-HOLDING COMPANY - 2005: US$5,148,000 (2004: US$16,144,000)}

^{-RELATED COMPANIES - 2005: US$23,260,000 (2004: US$2,488,000)}

^{-THIRD PARTIES - 2005: US$26,224,000 (2004: US$7,857,000)}

^{AMOUNT DUE TO BANKS OF US$11,124,000 (2004: US$23,461,000) CONSISTED OF:}

^{-SHORT-TERM BANK LOANS (UNSECURED)- 2005: US$11,124,000 (2004: US $23,461,000)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 2.89 TIMES TO 3.33 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.28 TIMES, DOWN FROM 1.32 TIMES AND QUICK RATIO IMPROVED TO 0.85 TIMES FROM 0.77 TIMES IN FY 2004.}

^{NET WORKING CAPITAL IMPROVED BY 15.64% FROM US$16,480,000 IN FY 2004 TO US$19,057,000.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-CASH AT BANK AND IN HAND - 2005: US$ 326,000 (2004: US$627,000)}

^{-SHORT-TERM BANK DEPOSITS - 2005: US$6,940,000 (2004: US$398,000)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 18.79% FROM US$338,154,000 IN FY 2004 TO US$401,723,000 AND NET PROFIT ROSE BY 62.24% TO US$2,544,000 (2004: US1,568,000).}

^{HENCE, NET MARGIN ROSE TO 0.63% (2004: 0.46%).}

^REVENUE:

^GOODS

^{-EXTERNAL CUSTOMERS - 2005: US$242,187,000 (2004: US$172,133,000)}

^{-HOLDING COMPANIES AND RELATED COMPANIES - 2005: US$159,536,000}

^{(2004: US$166,021,000)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-CLUB MEMBERSHIP - 2005: US$56,000 (2004: US$56,000)}

^{-5 UNSECURED NOTES AT S$120,000 EACH IN A CLUB - 2005: US$352,000}

^{(2004: US$352,000)}

^{-ENTRANCE FEE - 2005: US$349,000 (2004: US$369,000)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{SHORT-TERM BANK LOANS (UNSECURED)}

^{THE FACILITIES ARE COVERED BY LETTERS OF AWARENESS AND COMFORT ISSUED BY THE ULTIMATE HOLDING COMPANY.}

^{CASH AND BANK BALANCES}

^{CASH AT BANKS EARN INTEREST AT FLOATING RATES BASED ON DAILY BANK DEPOSIT RATES RANGING FROM 2.5% TO 3.7% (2004: 0.17% TO 0.22%) PER ANNUM.}

^{SHORT-TERM DEPOSITS ARE MADE FOR VARYING PERIODS OF BETWEEN ONE DAY AND THREE MONTHS DEPENDING ON THE IMMEDIATE CASH REQUIREMENTS OF THE COMPANY, AND EARN INTERESTS AT THE RESPECTIVE SHORT-TERM DEPOSIT RATES. THE WEIGHTED EFFECTIVE INTEREST RATE OF SHORT TERM DEPOSITS IS 2.2% (2004: 0.9%) PER ANNUM.}

^{CONTINGENT LIABILITIES}

^{BANKERS' GUARANTEES - 2005: US$2,953,000 (2004: US$2,962,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 23/02/1991 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "MARUBENI SINGAPORE PTE LTD".}

^{AS AT 16/04/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 67,000,000 SHARES OF A VALUE OF S$34,513,533.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{2) REAL ESTATE DEVELOPERS}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF THE MARKETING, IMPORT AND EXPORT OF GOODS AND SERVCIES AND AS GENERAL CONTRACTORS.}

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

^{BACKGROUND OF MARUBENI CORPORATION:}

^{1969 MARKED THE 20TH YEAR SINCE THE COMPANY STARTED ANEW AS THE MARUBENI CORPORATION,}

^{ON JANUARY 1, 1972, THE COMPANY CHANGED ITS NAME FROM MARUBENI-IIDA CO., LTD. TO MARUBENI CORPORATION. DURING THE SAME MONTH, THE OFFICE OF THE TOKYO HEADQUARTERS WAS MOVED FROM THE OTEMACHI BUILDING TO THE NEWLY CONSTRUCTED MARUBENI BUILDING IN TAKEHASHI, WHICH IS STILL THE HEADQUARTERS OFFICE BUILDING TODAY.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* TRADING OF METALS/PIPES & TUBES/MACHINERY, ALUMINIUM/NON-FERROUS METALS/PRECIOUS}

^{STONES/GENERAL}

^{TERMS OF PAYMENT:}

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

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

^{HEAD OFFICE:}

^{* JAPAN}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:}

^{* JAPANESE CHAMBER OF COMMERCE & INDUSTRY}

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^{FROM AN EARLIER TELE-INTERVIEW CONDUCTED ON 07/11/2006, THE FOLLOWING WAS GATHERED:}

^{IMPORT COUNTRIES:}

^{* WORLDWIDE}

^{EXPORT COUNTRIES:}

^{* WORLDWIDE}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2006: 50+}

^{NO OTHER TRADE INFORMATION IS MADE AVAILABLE AT THE TIME OF THIS REPORT.}

^{THE COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF MARUBENI CORPORATION, INCORPORATED IN JAPAN WHICH IS ALSO THE COMPANY'S ULTIMATE HOLDING COMPANY.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: 43; 2003: 42; 2002: 41)}

^{* GROUP - 2005: - (2004: -)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{16 RAFFLES QUAY}

^#13-00

^{HONG LEONG BUILDING}

^{SINGAPORE 048581}

^{- RENTED PREMISE}

^{- OWNED BY HONG LEONG HOLDINGS LIMITED}

^{- DATE OF CHANGE OF ADDRESS: 01/04/2005}

^WEBSITE:

^{http://www.marubeni.co.jp}

^EMAIL:

^-

MANAGEMENT

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

^{1) HISASHI SUNAOSHI, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{2) YOSHIYUKI MINAGAWA, A JAPANESE}

^{- BASED IN SINGAPORE.}

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