MIRA INFORM REPORT

Report Date :

31.07.2007

IDENTIFICATION DETAILS

Name :	AGROMED RESOURCES PTE LTD
Registered Office :	^10 Anson Road, #14^-^15, International Plaza, Singapore – 079903
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^19/01/1987
Com. Reg. No.:	^198700169M
Legal Form :	^Pte Ltd
Line of Business :	Import, Export and Develop Market markets for Bio-Agro Pharmaceutical and Vetennary Products, etc

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

AGROMED RESOURCES PTE LTD

Line Of Business 

IMPORT, EXPORT AND DEVELOP MARKET MARKETS FOR BIO-AGRO PHARMACEUTICAL AND VETENNARY PRODUCTS, ETC

Parent Company

PHARM RESOURCES AND SERVICES LIMITED

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : S$14,023,730

Networth : S$1,170,142

Paid-Up Capital : S$500,000

Net result : S$272,522

Net Margin(%) : 1.94

Return on Equity(%) : 23.29

Leverage Ratio : 4.38

COMPANY IDENTIFICATION

^{Subject Company: AGROMED RESOURCES PTE LTD}

^{Former Name: BIOSTADT MARKETING PTE LTD}

^{Business Address: 10 ANSON ROAD}

^#14-15

^{INTERNATIONAL PLAZA}

^{Town: SINGAPORE}

^{Postcode: 079903}

^{County: -}

^{Country: Singapore}

^{Telephone: 6223 4451}

^{Fax: 6223 4471}

^{ROC Number: 198700169M}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{BIOSTADT MARKETING PTE LTD DATE OF CHANGE: 20/04/2001}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 19/01/1987}

^{Previous Legal Form: -}

^{Summary year: 31/12/2006}

^{Sales: 14,023,730}

^{Net worth: 1,170,142}

^{Capital: -}

^{Paid-Up Capital: 500,000}

^{Employees: Not available}

^{Net result: 272,522}

^{Share value: -}

^{Auditor: J K MEDORA & CO}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 19/01/1987}

PRINCIPAL(S)

^{SHAIKH ANWAR ISHAK S2687111E Director}

DIRECTOR(S)

^{SHAIKH ANWAR ISHAK S2687111E Director}

^{Appointed on: 19/01/1987}

^{Street: 3 MARINE VISTA}

^#20-65

^{NEPTUNE COURT}

^{Town: SINGAPORE}

^{Postcode: 449027}

^{Country: Singapore}

^{MUNIRA ANWAR SHAIKH S2687112C Director}

^{Appointed on: 11/08/1998}

^{Street: 3 MARINE VISTA}

^#20-65

^{NEPTUNE COURT}

^{Town: SINGAPORE}

^{Postcode: 449027}

^{Country: Singapore}

^{PEH POH CHIN S6840069D Company Secretary}

^{Appointed on: 01/08/2003}

^{Street: 22 MALACCA STREET}

^#08-02

^{ROYAL BROTHERS BUILDING}

^{Town: SINGAPORE}

^{Postcode: 048980}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{NG KIAN FONG S0797015C}

^{KOH NGIN JOO JULIE S2586980Z}

^{KHORAKIWALA TAIZOON FAKHRUDDIN 621600}

^{WONG LAI LENG S1176982I}

^{TAIZOON FAKHRUDDIN KHORAKIWALA S2560430Z}

ACTIVITY(IES)

^{PHARMACEUTICAL PRODUCTS - WHSLE And MFRS Code:16400}

^{VETERINARY SUPPLIES Code:23135}

^{BUSINESS SERVICES Code:4}

^{BASED ON ACRA'S RECORD AS AT 25/07/2007}

^{1) WHOLESALE OF MEDICINAL AND PHARMACEUTICAL PRODUCTS (WESTERN)}

CHARGES

^{Date: 19/06/2002}

^{Comments: CHARGE NO: 200202702}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: UNITED OVERSEAS BANK LTD}

PREMISES/PROPERTY INFORMATIONS

^{Date: 30/07/2007 Tax rate: 10}

^{Site Address: 10 ANSON ROAD}

^#14-15

^{INTERNATIONAL PLAZA}

^{Town: SINGAPORE}

^{County: -}

^{Postcode: 079903}

^{Country: Singapore}

^{Annual Value: 12,300}

*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% (IE 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}

SHAREHOLDERS(S)

^{PHARM RESOURCES AND SERVICES 500,000 Company}

^{Street: P O BOX 957 OFFSHORE}

^{INCORPORATIONS CENTRE ROAD TOWN}

^{Town: -}

^{Postcode: -}

^{Country: Virgin Islands (British)}

FORMER SHAREHOLDER(S)

^{NG KIAN FONG 1}

^{KHORAKIWALA TAIZOON FAKHRUDDIN 499,997}

^{SHAIKH ANWAR ISHAK 3}

^{INTEGRAL HOLDINGS INC 3}

^{HANSCHWEIZ S.A. 499,997}

HOLDING COMPANY

^{PHARM RESOURCES AND SERVICES UF34634H %: 100}

SUBSIDIARY(IES)

No Participation In Our Database

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: SGD unless otherwise stated}

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

^{Date Account Lodged: 16/05/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005 31/12/2004}

^{Number of weeks: 52 52 91}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 274,594 283,469 292,894}

^{Total Fixed Assets: 274,594 283,469 292,894}

^{Inventories: 374,490 3,840,416 113,693}

^{Receivables: 4,097,057 3,902,042 1,080,859}

^{Short Term Fin. Assets: - - 554,907}

^{Cash,Banks,Securities: 1,501,580 2,565,958 1,833,731}

^{Other current assets: 44,731 3,300 2,950}

^{Total Current Assets: 6,017,858 10,311,716 3,586,140}

^{TOTAL ASSETS: 6,292,452 10,595,185 3,879,034}

^{--- LIABILITIES}

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

^{Profit & loss Account: 670,142 797,620 867,024}

^{Total Equity: 1,170,142 1,297,620 1,367,024}

^{L/T deferred taxes: 3,000 1,800 1,800}

^{Total L/T Liabilities: 3,000 1,800 1,800}

^{Trade Creditors: 3,688,210 6,451,854 19,823}

^{Prepay. & Def. charges: 127,699 228,854 67,717}

^{Due to Bank: 743,893 389,929 2,295,053}

^{Provisions: 71,574 37,680 72,100}

^{Other Short term Liab.: 487,934 2,187,448 55,517}

^{Total short term Liab.: 5,119,310 9,295,765 2,510,210}

^{TOTAL LIABILITIES: 5,122,310 9,297,565 2,512,010}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 14,023,730 9,640,749 4,518,392}

^{NET RESULT BEFORE TAX: 343,522 403,842 880,413}

^{Tax: 71,000 73,246 144,641}

^{Net income/loss year: 272,522 330,596 735,772}

^{Depreciation: 11,675 11,570 20,848}

^{Dividends: 400,000 400,000 550,000}

^{Directors Emoluments: 326,982 298,232 112,000}

^{Wages and Salaries: 162,497 177,314 226,561}

RATIOS

^{31/12/2006 31/12/2005 31/12/2004}

^{Net result / Turnover(%): 0.02 0.03 0.16}

^{Stock / Turnover(%): 0.03 0.40 0.03}

^{Net Margin(%): 1.94 3.43 16.28}

^{Return on Equity(%): 23.29 25.48 53.82}

^{Return on Assets(%): 4.33 3.12 18.97}

^{Dividends Coverage: 0.68 0.83 1.34}

^{Net Working capital: 898548.00 1015951.00 1075930.00}

^{Cash Ratio: 0.29 0.28 0.73}

^{Quick Ratio: 1.09 0.70 1.16}

^{Current ratio: 1.18 1.11 1.43}

^{Receivables Turnover: 105.17 145.71 86.12}

^{Leverage Ratio: 4.38 7.17 1.84}

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE EVEN THOUGH NET WORTH DECREASED BY 9.82% FROM S$1,297,620 IN 2005 TO S$1,170,142 IN 2006.}

^{THIS WAS DUE TO LOWER RETAINED EARNINGS OF S$670,142 (2005: S$797,620); A FALL OF 15.98% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 72.05% (2005: 69.41%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$3,688,210 (2005: S$6,451,854).}

^{AMOUNTS DUE TO BANKS ROSE BY 90.78% TO S$743,893 (2005: S$389,929).}

^{SUBJECT'S LONG TERM LIABILITIES, WHICH CONSIST OF DEFERRED INCOME TAX LIABILITIES, ROSE BY 66.67% TO S$3,000 (2005: S$1,800).}

^{IN ALL, LEVERAGE RATIO FELL FROM 7.17 TIMES TO 4.38 TIMES AS A RESULT OF A MORE THAN PROPORTIONATE FALL IN TOTAL LIABILITIES AS COMPARED TO THE FALL IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE EVEN THOUGH NET WORKING CAPITAL FELL BY 11.56% TO S$898,548 (2005: S$1,015,951).}

^{SIMILARLY, CASH AND CASH EQUIVALENTS FELL SHARPLY BY 41.48% TO S$1,501,580}

^{(2005: S$2,565,958).}

^{HOWEVER, CURRENT RATIO ROSE TO 1.18 TIMES, UP FROM 1.11 TIMES AND QUICK RATIO IMPROVED TO 1.09 TIMES FROM 0.70 TIMES IN 2005.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 45.46% FROM S$9,640,749 IN 2005 TO S$14,023,730 BUT NET PROFIT DROPPED BY 17.57% TO S$272,522 (2005: S$330,596).}

^{THIS COULD BE DUE TO THE NEGATIVE CHANGES IN INVENTORIES OF FINISHED GOODS OF S$3,465,926 (2005: POSITIVE S$3,726,723), AND THAT SUBJECT DID NOT EARN ANY COMMISSION IN 2006 (2005: S$25,841), BOTH OF WHICH COULD HAVE OFFSETTED THE INCREASE IN REVENUE.}

^{HENCE, NET MARGIN FELL TO 1.94% (2005: 3.43%).}

^{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, SUBJECT DID NOT INCUR ANY INTEREST EXPENSES DURING THE FINANCIAL YEAR UNDER REIVEW.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{BANK BORROWINGS}

^{THE BANK BORROWINGS ARE SECURED BY:}

^{A TIME/FIXED DEPOSIT OF US$152,000 (2005: US$152,000) INCLUSIVE OF ROLL OVER INTEREST, AND}

^{JOINT AND SEVERAL GUARANTEES FOR US$350,000 (2005: US$350,000) BY TWO OF THE DIRECTORS.}

^{THE BANK BORROWINGS ARE PERTAINING TO TERM BILLS ISSUED BY THE BANK AND THEY ARE NON-INTEREST BEARING.}

^{BANK GUARANTEES (UNSECURED)}

^{AS AT BALANCE SHEET DATE, THE COMPANY HAD BANK GUARANTEES ISSUED IN FAVOR OF THIRD PARTIES TOTALLING, APPROXIMATELY S$124,435 (2005: S$62,483).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 19/01/1987 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "BIOSTADT MARKETING PTE LTD".}

^{SUBSEQUENTLY ON 20/04/2001, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE OF "AGROMED RESOURCES PTE LTD".}

^{AS AT 25/07/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 500,000 SHARES, OF A VALUE OF S$500,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF MEDICINAL AND PHARMACEUTICAL PRODUCTS (WESTERN)}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE TO IMPORT, EXPORT AND DEVELOP MARKET MARKETS FOR BIO-AGRO PHARMACEUTICAL AND VETENNARY PRODUCTS, ACT AS REGIONAL REPRESENTATIVE OFFICE FOR PRINCIPALS AND TO ACT AS PURCHASING AGENTS FOR INTERNATIONAL BUYERS.}

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

^ACTIVITIES

^{- TRADING OF PHARMACEUTICALS AND AGRICULTURE PRODUCTS}

^{NUMBER OF EMPLOYEES}

^{- 4}

^{AGENT FOR}

^{- WOCKHARDT LTD (INDIA)}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 30/07/2007.}

^{THE COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF PHARM RESOURCES AND SERVICES LIMITED, A COMPANY INCORPORATED IN BRITISH VIRGIN ISLAND, WHICH DOES NOT PROVIDE FINANCIAL STATEMENTS FOR PUBLIC USE.}

^{NUMBER OF EMPLOYEES (31 DECEMBER)}

^{- COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{10 ANSON ROAD}

^#14-15

^{INTERNATIONAL PLAZA}

^{SINGAPORE 079903}

^{DATE OF CHANGE OF ADDRESS: 01/08/2003}

^{- OWNED PREMISE}

^WEBSITE:

^NIL

^EMAIL:

^{corporate@agromedresources.com}

MANAGEMENT

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

^{1) SHAIKH ANWAR ISHAK, A SINGAPORE PERMANENT RESIDENT}

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

^{2) MUNIRA ANWAR SHAIKH, A SINGAPORE PERMANENT RESIDENT}

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

^{SWITZ MARKETING PTE LTD}

SINGAPORE’S COUNTRY RATING 2007

^{INVESTMENT GRADE}

^{IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.}

^{SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.}

^{EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.}

^{SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.}

^{THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.}

^{CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW. AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.}

^ASSETS

^{" MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING}

^COMPANY.

^{" HIGH QUALITY COMPETITIVENESS IN ASIA}

^{" EXCELLENT BUSINESS CLIMATE}

^{" POLITICAL STABILITY.}

^WEAKNESSES

^{" SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.}

^{" AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.}

^{" GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST}

^{SKILLED COULD GENERATE SOCIAL TENSIONS.}

^{" BEING THE WORLD'S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC}

^DOWNTURNS.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE DECLINED BY 7.5% IN Q1 2007. EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 7.4%. SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, INDUSTRIAL AND CONSTRUCTION MACHINERY REPORTED DECLINES OF 11.6% TO 23.8%.

HOWEVER, WHOLESALERS OF FOOD, BEVERAGES AND TOBACCO REGISTERED HIGHER TURNOVER OF 5.4%.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE IN QUARTER 1 2007 FELL BY 7.6%. EXCLUDING PETROLEUM, FOREIGN SALES DECLINED BY 8.0%. MOST WHOLESALE SECTORS REPORTED LOWER OVERSEAS RECEIPTS IN QUARTER 1 2007 COMPARED TO THE PREVIOUS QUARTER, EXCEPT HOUSEHOLD EQUIPMENT AND FURNITURE SECTOR. SHIP CHANDLERS & BUNKERING REPORTED THE LARGEST DECLINE OF 18.3% IN QUARTER 1 2007, FOLLOWED BY FOOD BEVERAGES & TOBACCO SECTOR OF 17.7%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE MARGINALLY BY 0.7% IN QUARTER 2 2007, COMPARED TO QUARTER 2 2006. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.1%. SALES OF OPTICAL GOODS & BOOKS, FURNITURE & HOUSEHOLD EQUIPMENT AND SUPERMARKETS ENJOYED STRONG GROWTHS OVER A YEAR AGO. PROVISION & SUNDRY SHOPS, WATCHES AND JEWELLERY, DEPARTMENT STORES AND WEARING APPAREL & FOOTWEAR SECTORS ALSO REPORTED HIGHER SALES OF 4.35 TO 5.9% RESPECTIVELY.

HOWEVER, RETAILERS OF MOTOR VEHICLES, FOOD & BEVERAGES, TELECOMMUNICATIONS APPARATUS & COMPUTERS AND PETROL SERVICES STATIONS REPORTED LOWER SALES.

OUTLOOK

GENERALLY, WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD & BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC.

RETAIL TRADE FIRMS ANTICIPATE BUSINESS TO BE LESS BRISK FOR THE NEXT 6 MONTHS. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

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