MIRA INFORM REPORT

Report Date :

14.08.2007

IDENTIFICATION DETAILS

Name :	DYSTAR SINGAPORE PTE LTD
Registered Office :	^152 Beach Road, #37-00^, Gateway East, Singapore – 189721
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^27/06/1995
Com. Reg. No.:	^199504459G
Legal Form :	^Pte Ltd
Line of Business :	Regional Centre and Marketing Office for Finished Textile Dyes and Pigment Preparations

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 :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

DYSTAR SINGAPORE PTE LTD

Line Of Business 

REGIONAL CENTRE AND MARKETING OFFICE FOR FINISHED TEXTILE DYES AND PIGMENT PREPARATIONS

Parent Company

DYSTAR TEXTILFARBEN GMBH

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

COMPANY

Sales : US$197,209,237

Networth : US$13,657,140

Paid-Up Capital : US$7,958,721

Net result : US$4,321,464

Net Margin(%) : 2.19

Return on Equity(%) : 31.64

Leverage Ratio : 5.19

COMPANY IDENTIFICATION

^{Subject Company : DYSTAR SINGAPORE PTE LTD}

^{Former Name : -}

^{Business Address: 152 BEACH ROAD}

^#37-00

^{GATEWAY EAST}

^{Town: SINGAPORE}

^{Postcode: 189721}

^{County: -}

^{Country: Singapore}

^{Telephone: 6298 7922}

^{Fax: 6295 5308}

^{ROC Number: 199504459G}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 27/06/1995}

^{Previous Legal Form: -}

^{Summary year : 31/12/2005}

^{Sales: 197,209,237}

^{Networth : 13,657,140}

^{Capital: -}

^{Paid-Up Capital: 7,958,721}

^{Employees: 30}

^{Net result : 4,321,464}

^{Share value: -}

^{AUDITOR: ERNST & YOUNG}

^{BASED ON ACRA'S RECORD AS AT 10/08/2007:}

^{NO. OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 14,730,000 SGD 14,730,000}

^{PAID-UP ORDINARY - SGD 14,730,000}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 27/06/1995}

PRINCIPAL(S)

^{PETER ZINSER S2717573B Managing Director}

DIRECTOR(S)

^{VEMALA RAJAMANICKAM S0347048B Company Secretary}

^{Appointed on : 19/04/1996}

^{Street : 141 CEYLON ROAD}

^{Town: SINGAPORE}

^{Postcode: 429704}

^{Country: Singapore}

^{PETER ZINSER S2717573B Director}

^{Appointed on : 30/09/2000}

^{Street : 36 CHUAN VIEW}

^{Town: SINGAPORE}

^{Postcode: 554715}

^{Country: Singapore}

^{PETER ZINSER S2717573B Managing Director}

^{Appointed on : 30/09/2000}

^{Street : 36 CHUAN VIEW}

^{Town: SINGAPORE}

^{Postcode: 554715}

^{Country: Singapore}

^{IAN MICHAEL STUART DOWNIE 094127998 Director}

^{Appointed on : 15/11/2004}

^{Street : BEECH HILL, EASTON}

^WINCHESTER

^{HAMPSHIRE S021, 1ED}

^Town:

^Postcode:

^{Country: United Kingdom}

^{IAN MICHAEL STUART DOWNIE 094127998 Managing Director}

^{Appointed on : 15/11/2004}

^{Street : BEECH HILL, EASTON}

^WINCHESTER

^{HAMPSHIRE S021, 1ED}

^Town:

^Postcode:

^{Country: United Kingdom}

^{EVA MONICA KALAWSKI 038909431 Director}

^{Appointed on : 19/07/2006}

^{Street : 2013 CANAL STREET, VENICE}

^{Town: CALIFORNIA}

^{Postcode: 90291}

^{Country: United States}

FORMER DIRECTOR(S)

^{WERNER FRIDOLIN BURGERT F5641952R}

^{HELMUT RAULWING 1422287396}

^{HARALD GRULKENEWALD 3334067589}

^{ELMAR STACHELS 5347094462}

^{BERNHARD CLEMENS FRIEDRICH WILLEE 6466471503}

^{HARALD WERNER ROBERT LAUKE F5602097R}

^{NICHOLAS TREVOR 094236854}

ACTIVITY(IES)

^{DYES And DYESTUFFS Code:7190}

^{CHEMICALS Code:3970}

^{BASED ON ACRA'S RECORD AS AT 10/08/2007}

^{1) BUILDING-CLEANING ACTIVITIES (EG JANITORIAL SERVICE)}

^{THOSE RELATING TO THE DISTRIBUTION OF TEXTILE DYES}

CHARGES

^{Date: 01/02/2007}

^{Comments : CHARGE NO: C200700955, C200700953}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): GE CAPITAL SERVICES PTE LTD}

^{Date: 29/12/2006}

^{Comments : CHARGE NO: C200608798, C200608797, C200608796, C200608795}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): GE CAPITAL SERVICES PTE LTD}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED}

SHAREHOLDERS(S)

^{DYSTAR TEXTILFARBEN GMBH 14,730,000 Company}

^{Street : INDUSTRIEPARK HOECHST}

^{GEB.B 598}

^{Town: FRANKFURT}

^{Postcode: D-65926}

^{Country: Germany}

HOLDING COMPANY

^{DYSTAR TEXTILFARBEN GMBH UF16322G % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : LEVEL

Financial Situation: AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 27/10/2006}

^{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 239,209 300,622 363,063}

^{Intangible Fixed Assets: 20,377 - -}

^{Tangible Fixed Assets: 406,398 479,710 211,669}

^{Investments - - -}

^{Total Fixed Assets: 665,984 780,332 574,732}

^{Inventories: 25,766,249 16,896,356 18,658,986}

^{Receivables: 52,142,132 49,065,557 33,213,647}

^{Cash,Banks, Securitis: 5,151,815 5,026,087 1,638,671}

^{Other current assets: 655,197 422,600 971,666}

^{Total Current Assets: 83,715,393 71,410,600 54,482,970}

^{TOTAL ASSETS: 84,381,377 72,190,932 55,057,702}

^{--- LIABILITIES}

^{Equity capital: 7,958,721 7,958,721 7,958,721}

^{Profit & loss Account: 5,698,419 1,376,955 1,175,743}

^{TOTAL EQUITY: 13,657,140 9,335,676 9,134,464}

^{Trade Creditors: 49,129,048 38,906,069 24,148,214}

^{Prepay. & Def. charges: 2,370,964 1,301,149 866,438}

^{Due to Bank: 17,450,008 19,503,182 6,844,682}

^{Provisions: 561,929 88,381 207,901}

^{Other Short term Liab.: 1,212,288 3,056,475 13,856,003}

^{Total short term Liab.: 70,724,237 62,855,256 45,923,238}

^{TOTAL LIABILITIES: 70,724,237 62,855,256 45,923,238}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 197,209,237 197,582,254 177,969,210}

^{Gross Profit: 26,907,812 23,642,918 18,858,203}

^{Result of ordinary operations 5,682,294 654,592 697,151}

^{NET RESULT BEFORE TAX: 4,870,480 270,404 506,746}

^{Tax : 549,016 69,192 143,342}

^{Net income/loss year: 4,321,464 201,212 363,404}

^{Interest Paid: 822,166 389,020 193,940}

^{Depreciation: 144,073 136,599 125,690}

^{Directors Emoluments: 498,933 396,758 346,821}

^{Purchases,Sces & Other}

^{Goods: 170,301,425 173,939,336 -}

^{Wages and Salaries: 2,877,378 2,873,775 2,748,545}

^{Financial Income: 10,352 4,832 3,535}

RATIOS

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

^{Turnover per employee: 6573641.23 6586075.13 5932307.00}

^{Net result / Turnover(%): 0.02 0.00 0.00}

^{Stock / Turnover(%): 0.13 0.09 0.10}

^{Net Margin(%): 2.19 0.10 0.20}

^{Return on Equity(%): 31.64 2.16 3.98}

^{Return on Assets(%): 5.12 0.28 0.66}

^{Net Working capital: 12991156.00 8555344.00 8559732.00}

^{Cash Ratio: 0.07 0.08 0.04}

^{Quick Ratio: 0.81 0.86 0.76}

^{Current ratio: 1.18 1.14 1.19}

^{Receivables Turnover: 95.18 89.40 67.19}

^{Leverage Ratio: 5.19 6.73 5.03}

^{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 46.29% FROM US$9,335,676 IN FY 2004 TO US$13,657,140 IN FY 2005. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$5,698,419 (2004: US$1,376,955); A RISE OF 3.14 TIMES FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 69.47% (2004: 61.89%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$49,129,048 (2004: US$38,906,069). THE BREAKDOWN IS AS FOLLOWS:}

^{-TRADE CREDITORS - 2005: US$2,831,001 (2004: US$859,042)}

^{-DUE TO HOLDING COMPANY - 2005: US$41,910,697 (2004: US$34,952,205)}

^{-DUE TO RELATED COMPANIES - 2005: US$4,383,152 (2004: US$3,094,822)}

^{-DUE TO AFFILIATED COMPANIES - 2005: US$4,198 (2004: -)}

^{AMOUNT DUE TO BANKS OF US$17,450,008 (2004 US$19,503,182) CONSISTED OF:}

^{-INTEREST-BEARING LOANS AND BORROWINGS - 2005: US$17,450,000 (2004: US$19,500,000)}

^{-BANK OVERDRAFTS - 2005: US$8 (2004: US$3,182)}

^{IN ALL, LEVERAGE RATIO FELL FROM 6.73 TIMES TO 5.19 TIMES AS A RESULT OF A GREATER RELATIVE RISE IN TOTAL EQUITY THAN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 1.18 TIMES, UP FROM 1.14 TIMES AND QUICK RATIO FELL TO 0.81 TIMES FROM 0.86 TIMES IN FY 2004.}

^{NET WORKING CAPITAL IMPROVED BY 51.85% FROM US$8,555,344 IN FY 2004 TO US$12,991,156.}

^{PROFITABILITY:}

^{REVENUE POSTED A MARGINAL DECLINE OF 0.19% FROM US$197,582,254 IN FY 2004 TO US$197,209,237 BUT NET PROFIT ROSE BY 20.48 TIMES TO US$4,321,464 (2004: US$201,212). THIS COULD BE DUE TO HIGHER GROSS MARGIN OF 13.64% IN FY 2005 (2004: 11.97%). HENCE, NET MARGIN ROSE TO 2.19% (2004: 0.10%).}

^{DEBT SERVICING:}

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

^{AVERAGE COLLECTION PERIOD HAS INCREASED FROM 89.40 DAYS TO 95.18 DAYS. A HIGHER AVERAGE COLLECTION PERIOD POSES GREATER RISK OF TURNING INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT SERVICING ABILITY MAY NOT BE AFFECTED IF TRADE RECEIVABLES ARE FORTHCOMING.}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-OTHER RECEIVABLES - 2005: US$61,500 (2004: -)}

^{-DEFERRED TAX ASSET - 2005: US$177,709 (2004: US$300,622)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{INTEREST-BEARING LOANS AND BORROWINGS}

^{THESE UNSECURED BANK LOANS RE REPAYABLE WITHIN THE NEXT TWELVE MONTHS AND BEAR INTEREST AT RATES PAYABLE OF 3.56% TO 6.21% (2004: 1.41% TO 3.34%) PER ANNUM. THE HOLDING COMPANY HAS ISSUED A LETTER OF COMFORT TO THE BANK FOR THE UNSECURED BANK LOANS.}

^{BANK OVERDRAFTS}

^{THE BANK OVERDRAFTS ARE REPAYABLE ON DEMAND AND HAVE A WEIGHTED AVERAGE EFFECTIVE INTEREST RATE OF 5.25% (2004: 5.00%) P.A. INTEREST RATES OF BANK OVERDRAFTS REPRICE AT AN INTERVAL OF 1 MONTH.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 27/06/1995 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "DYSTAR SINGAPORE PTE LTD".}

^{AS AT 10/08/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 14,730,000 SHARES OF A VALUE OF S$14,730,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) BUILDING-CLEANING ACTIVITIES (EG JANITORIAL SERVICE) THOSE RELATING TO THE DISTRIBUTION OF TEXTILE DYES}

^{2) MARKET RESEARH AND PUBLIC OPINION POLLING RESEARCH & DEVELOPMENT OF DYESTUFF}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF THE SALE AND DISTRIBUTION OF TEXTILE DYES.}

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

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* REGIONAL CENTRE AND MARKETING OFFICE FOR FINISHED TEXTILE DYES AND PIGMENT PREPARATIONS}

^{PRODUCTS DEALINGS:}

^{* SPECIALTY CHEMICALS}

^{* TEXTILE DYES & PIGMENTS FOR TEXTILES}

^{* CHEMICALS}

^{* EPOXY RESIN DILUENTS}

^{TERMS OF PAYMENT:}

^{* TRADE AND OTHER RECEIVABLES: 60-90 DAYS TERM, CASH ON DELIVERY, ADVANCE PAYMENTS, LETTERS OF CREDIT, DOCUMENT AGAINST ACCEPTANCE, DOCUMENT AGAINST PAYMENTS.}

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

^{IMPORT COUNTRIES:}

^{* MALAYSIA}

^{* INDONESIA}

^{* SRI LANKA}

^{* NEW ZEALAND}

^{* AUSTRIA}

^{ATTEMPTS HAVE BEEN MADE TO RECONFIRM THE ABOVE TRADE INFORMATION AND OBTAINED OTHER INFORMATION ON 14/08/2007. HOWEVER, THE SUBJECT REFUSE TO RECONFIRM THE ABOVE TRADE INFORMATION AND DOES NOT REVEAL OTHER INFORMATION ON 14/08/2007.}

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

^{* SINGAPORE BUSINESS FEDERATION}

^{* BELGIUM LUXEMBOURG ASSOCIATION OF SINGAPORE}

^{THE COMPANY IS A WHOLLY OWNED SUBSIDIARY OF DYSTAR TEXTILFARBEN GMBH, INCORPORATED IN GERMANY. ITS ULTIMATE HOLDING COMPANY IS DYSTAR HOLDINGS GMBH, INCORPORATED IN GERMANY.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: 30; 2003: 32; 2002: 37)}

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

^{REGISTERED ADDRESS:}

^{1 MARINA BOULEVARD}

^{#28-00 ONE MARINA BOULEVARD}

^{SINGAPORE 018989}

^{- DATE OF CHANGE OF ADDRESS: 19/04/2004}

^{BUSINESS ADDRESS:}

^{152 BEACH ROAD}

^{#37-00 GATEWAY EAST}

^{SINGAPORE 189721}

^{- RENTED PREMISE}

^{- OWNED BY GATEWAY LAND LIMITED}

^WEBSITE:

^{http://www.dystar.com}

^EMAIL:

^{DyStar.Singapore@DyStar.com}

MANAGEMENT

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

^{1) EVA MONICA KALAWSKI, AN AMERICAN}

^{- BASED IN UNITED STATES OF AMERICA.}

^{2) IAN MICHAEL STUART DOWNIE, A BRITISH}

^{- BASED IN UNITED KINGDOM.}

^{3) PETER ZINSER, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.}

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.	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