MIRA INFORM REPORT

Report Date :

23.08.2007

IDENTIFICATION DETAILS

Name :	MAXGROW (PTE) LTD

Registered Office :	^{1 North Bridge Road, #14-04, High Street}^{Centre, Singapore}^{– 179094}

Country :	Singapore

Financials (as on) :	31.12.2004

Date of Incorporation :	^20/08/1982

Com. Reg. No.:	^198203516E

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Importers, Exporters and Commission Agents

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Regular

Litigation :	Exists

Subject Company

MAXGROW (PTE) LTD

Line Of Business

IMPORTERS, EXPORTERS AND COMMISSION AGENTS

Parent Company

Financial Elements

FY 2004

COMPANY

Sales : S$5,635,648

Networth : S$1,372,642

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

Net result : S$-47,391

Net Margin(%) : -0.84

Return on Equity(%) : -3.45

Leverage Ratio : 6.34

COMPANY IDENTIFICATION

^{Subject Company: MAXGROW
(PTE) LTD}

^{Former Name: SARMON
(PTE) LTD}

^{Business Address: 1 NORTH
BRIDGE ROAD}

^#14-04

^{HIGH STREET CENTRE}

^{Town: SINGAPORE}

^{Postcode: 179094}

^{County: -}

^{Country: Singapore}

^{Telephone: 6338
2577}

^{Fax: 6338 8852}

^{ROC Number: 198203516E}

^Reg.^Town^{:
-}

PREVIOUS IDENTIFICATION

^{SARMON (PTE) LTD DATE OF CHANGE: 30/12/1996}

SUMMARY

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

^{Legal Form: Exempt
Pte Ltd}

^{Date Inc.: 20/08/1982}

^{Previous Legal Form: -}

^{Summary year: 31/12/2004}

^{Sales: 5,635,648}

^{Net worth: 1,372,642}

^{Capital: 3,000,000}

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

^{Employees: Not
available}

^{Net result: -47,391}

^{Share value: 1}

^{Auditor: A.S.
MOHAMED & CO}

REFERENCES

^{Litigation: Yes}

^{Company status: TRADING}

^{Started: 20/08/1982}

PRINCIPAL(S)

^{BHARAT KALYANJI RAJPOPAT S2621646Z Managing Director}

DIRECTOR(S)

^{MADELYN KWANG YEIT LAM S1426198B Company Secretary}

^{Appointed on: 21/08/1984}

^{Street: 869 TAMPINES STREET
83}

^#12-179

^{Town: SINGAPORE}

^{Postcode: 520869}

^{Country: Singapore}

^{BHARAT KALYANJI RAJPOPAT S2621646Z Managing Director}

^{Appointed on:
26/01/1983}

^{Street:
84 JALAN DAUD}

^#11-04

^{WINDY HEIGHTS}

^{Town: SINGAPORE}

^{Postcode: 419593}

^{Country: Singapore}

^{REKHA BHARAT RAJPOPAT S2622491H Director}

^{Appointed on: 12/10/1992}

^{Street: 84
JALAN DAUD}

^#11-04

^{WINDY HEIGHTS}

^{Town: SINGAPORE}

^{Postcode: 419593}

^{Country: Singapore}

^{MEHUL BHARAT RAJPOPAT S7771059J Director}

^{Appointed on: 29/10/2000}

^{Street: 84
JALAN DAUD}

^#11-04

^{WINDY HEIGHTS}

^{Town: SINGAPORE}

^{Postcode: 419593}

^{Country: Singapore}

^{BHARAT KALYANJI RAJPOPAT S2621646Z Director}

^{Appointed on: 26/01/1983}

^{Street: 84
JALAN DAUD}

^#11-04

^{WINDY HEIGHTS}

^{Town: SINGAPORE}

^{Postcode: 419593}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{SAVI JAMSHED KHAFI S2097312I}

^{ALEC CROWTHER FERGUSSON S2162645G}

^{HETAL DWARKADA @ DWIREK RAJ S2658200H}

^{HANSRAJ KALYANJI KANJI M725034}

^{MANSUKHLAL KALYANJI RAJ P242941}

^{DHIREN KALYANJI RAJPOPAT P307669}

^{SANJAY HANSRAJ RAJPOPAT P307692}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{COMMISSION MERCHANTS Code:4990}

^{BASED ON ACRA'S RECORD AS AT
17/08/2007}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL
IMPORTERS AND EXPORTERS) IMPORTER, EXPORTERS & COMMISSION AGENTS}

CHARGES

^{Date:
16/03/1995}

^{Comments:
CHARGE NO:
9501528}

^{SECURED: 0.00 ALL MONIES OWING}

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

^{Date:
29/04/1994}

^{Comments:
CHARGE NO:
9402475}

^{SECURED: 0.00 ALL MONIES OWING}

^{CHARGEE(S): THE HONGKONG AND SHANGHAI BANKING CORPORATION
LIMITED}

PREMISES/PROPERTY INFORMATIONS

^{Date: 23/08/2007} ^{Tax rate: 10}

^{Site Address: 1 NORTH BRIDGE ROAD}

^#14-04

^{Town:
SINGAPORE}

^{County: - Postcode: 179094}

^{Country: Singapore}

^{Annual Value: 26,400}

*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}

^{THE HONGKONG AND SHANGHAI BANKING} ^{CORPORATION LIMITED}

^{BANK OF INDIA}

SHAREHOLDERS(S)

^{BHARAT KALYANJI RAJPOPAT 2,000,000 Private Person}

^{Street: 84
JALAN DAUD}

^#11-04

^{WINDY HEIGHTS}

^{Town: SINGAPORE}

^{Postcode: 419593}

^{Country: Singapore}

^{REKHA BHARAT RAJPOPAT 300,000 Private Person}

^{Street: 84
JALAN DAUD}

^#11-04

^{WINDY HEIGHTS}

^{Town: SINGAPORE}

^{Postcode: 419593}

^{Country: Singapore}

^{MEHUL BHARAT RAJPOPAT 700,000 Private Person}

^{Street: 84
JALAN DAUD}

^#11-04

^{WINDY HEIGHTS}

^{Town: SINGAPORE}

^{Postcode: 419593}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{SAVI JAMSHED KHAFI 1}

^{ALEC CROWTHER FERGUSSON 1}

^{HETAL DWARKADA @ DWIREK RAJ 500,000}

^{HANSRAJ KALYANJI KANJI 50,000}

^{MANSUKHLAL KALYANJI RAJ 100,000}

^{DHIREN KALYANJI RAJPOPAT 95,000}

^{SANJAY HANSRAJ RAJPOPAT 9,998}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: UNKNOWN}

^{Payments: REGULAR}

^{Trend: LEVEL}

^{Financial Situation: UNKNOWN}

LITIGATION(S)

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

^{Case Number:
HWS02202/88}

Plaintiff INTER METALLCO PL ROC #: 198002670G

Defendant MAXGROW (PTE) LTD ROC #: 198203516E

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 24/01/2006}

^{Balance Sheet Date: 31/12/2004 31/12/2003 31/12/2002}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^---
ASSETS

^{Tangible Fixed Assets: 2,033,272 2,083,585 2,084,710}

^{Total Fixed Assets}^{: 2,033,272 2,083,585 2,084,710}

^{Inventories: 135,807 154,058 462,305}

^{Receivables: 7,228,218 7,493,386 7,299,555}

^{Cash,Banks,Securities: 656,314 815,874 1,333,171}

^{Other current assets: 27,834 32,468 80,678}

^{Total Current Assets}^{: 8,048,173 8,495,786 9,175,709}

^{TOTAL
ASSETS: 10,081,445 10,579,371 11,260,419}

^{---
LIABILITIES}

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

^{Reserves: 509,810 509,810 509,810}

^{Profit & loss
Account: -2,137,168 -2,089,777 -2,015,918}

^{Total Equity: 1,372,642 1,420,033 1,493,892}

^{Trade Creditors: 5,331,664 6,013,102 6,432,862}

^{Prepay. & Def.
charges: 93,090 96,337 67,751}

^{Due to Bank: 581,130 571,754 903,017}

^{Other Short term
Liab.: 2,702,919 2,478,145 2,362,897}

^{Total short term Liab}^{.: 8,708,803 9,159,338 9,766,527}

^{TOTAL
LIABILITIES: 8,708,803 9,159,338 9,766,527}

^{PROFIT & LOSS
ACCOUNT}

^{Net Sales 5,635,648 10,812,870 10,141,801}

^{Purchases,Sces & Other Goods:
5,128,387
10,268,555 9,639,709}

^{Gross Profit: 507,261 544,315 502,092}

^{Result of ordinary
operations -2,051 -26,035 -99,241}

^{NET RESULT BEFORE TAX: -47,391 -73,859 -158,632}

^{Tax: - - -}

^{Net income/loss year: -47,391 -73,859 -158,632}

^{Interest Paid: 45,340 47,824 59,391}

^{Depreciation: 53,375 53,853 40,399}

^{Directors Emoluments: 126,900 132,200 164,600}

^{Wages and Salaries: 201,809 194,041 200,126}

RATIOS

^{31/12/2004 31/12/2003 31/12/2002}

^{Net result /
Turnover(%): -0.01 -0.01 -0.02}

^{Fin. Charges /
Turnover(%): 0.01 0.00 0.01}

^{Stock / Turnover(%): 0.02 0.01 0.05}

^{Net Margin(%): -0.84 -0.68 -1.56}

^{Return on Equity(%): -3.45 -5.20 -10.62}

^{Return on Assets(%): -0.47 -0.70 -1.41}

^{Net Working capital: -660630.00 -663552.00 -590818.00}

^{Cash Ratio: 0.08 0.09 0.14}

^{Quick Ratio: 0.91 0.91 0.88}

^{Current ratio: 0.92 0.93 0.94}

^{Receivables Turnover: 461.73 249.48 259.11}

^{Leverage Ratio: 6.34 6.45 6.54}

^{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 STATEMENT IN THIS REPORT ARE
THOSE OF 2004 AND ARE} ^{CONSIDERED OUTDATED. HENCE, FINANCIAL ANALYSIS IS NOT CONDUCTED.
THE} ^{FINANCIAL STATEMENT SERVE AS A REFERENCE ONLY. IN REPLACEMENT,
ADVERSE} ^{CHECK ON ITS LOCAL DIRECTORS IS MADE.}

^{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.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{20/08/1982 AS A LIMITED EXEMPT PRIVATE
COMPANY UNDER THE NAMESTYLE OF} ^{"SARMON (PTE) LTD".}

^{SUBSEQUENTLY ON 30/12/1996, THE COMPANY
CHANGED TO ITS PRESENT} ^{NAMESTYLE OF "MAXGROW (PTE) LTD".}

^{AS AT 17/08/2007, THE COMPANY HAS AN ISSUED
AND PAID-UP CAPITAL OF} ^{3,000,000 SHARES, OF A VALUE OF S$3,000,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{IMPORTER, EXPORTERS & COMMISSION AGENTS}

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW,
THE COMPANY IS} ^{PRINCIPALLY
TRADING AS IMPORTERS, EXPORTERS AND COMMISSION AGENTS.}

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

^ACTIVITIES

^{- IMPORTERS AND EXPORTERS OF TEXTILE, PALM
OIL VEG GHEE, TIMBER LOGS,} ^AGRO

^{CHEMICALS, SPICES, PULSES, SUGAR, RICE AND OTHER PRODUCTS}

^PRODUCTS

^{- VEGETABLE GHEE, PALM OIL PRODUCTS, COOKING
OIL, LUBRICANT OIL,} ^{PAPER, ELECTRONICS, TIMBER, COMMODITIES, SPICES, TEA, SUGAR,
TEXTILES,} ^{WASTE PAPER, STATIONARY, DYES, BEARINGS, MILK POWDER, BABY
PRODUCTS} ^{(CUSSONS SOAP, SHAMPOO, POWDER, LOTION AND OIL ETC;)
CHEMICALS, METAL} ^{SCRAP, TIN PLATE, UREA, FERTILIZERS, PESTICIDES,
CEMENT, MARBLE,} ^{GRANITE, SLATE, TYRES, ETC}

^{EXPORT COUNTRIES}

^{- PAKISTAN,
AFRICA, VIETNAM, INDIA AND THE
MIDDLE-EAST}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE
AS TELE-INTERVIEW WAS} ^{NOT GRANTED ON 22/08/2007.}

^{NUMBER OF EMPLOYEES (31 DECEMBER)}

^{- COMPANY - 2004: NOT AVAILABLE (2003: NOT
AVAILABLE)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{1 NORTH BRIDGE
ROAD}

^#14-04

^{HIGH STREET CENTRE}

^SINGAPORE¹⁷⁹⁰⁹⁴

^{DATE OF CHANGE OF ADDRESS: 03/05/1988}

^{- OWNED PREMISE}

^WEBSITE:

^{www.maxgrow.com}

^EMAIL:

^{maxgrow@pacific.net.sg}

^{info@maxgrow.com}

MANAGEMENT

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

^{1) BHARAT KALTANJI RAJPOPAT, A SINGAPORE
PERMANENT RESIDENT}

^{- HOLDS NO OTHER DRIECTORSHIPS AS RECORDED IN
OURDATABASE.}

^{2) REKHA BHARAT RAJPOPAT, A SINGAPORE
PERMANENT RESIDENT}

^{- HOLDS NO OTHER DRIECTORSHIPS AS RECORDED IN
OURDATABASE.}

^{3) MEHUL BHARAT RAJPOPAT, A SINGAPOREAN}

^{- HOLDS NO OTHER DRIECTORSHIPS AS RECORDED IN
OURDATABASE.}

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME: BHARAT KALYANJI RAJPOPAT}

^{ADVERSE REPORT AGAINST DIRECTOR: NOT
AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: OWNS 1}

^{ANNUAL VALUE: S$15,600}

^{CO-OWNER (S): MEHUL BHARAT RAJPOPAT}

^{DIRECTOR'S NAME: REKHA BHARAT RAJPOPAT}

^{ADVERSE REPORT AGAINST DIRECTOR: NOT
AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: NIL}

^{ANNUAL VALUE: N.A.}

^{CO-OWNER (S): N.A.}

^{DIRECTOR'S NAME: MEHUL BHARAT RAJPOPAT}

^{ADVERSE REPORT AGAINST DIRECTOR: NOT
AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: OWNS 1}

^{ANNUAL VALUE: S$15,600}

^{CO-OWNER (S): BHARAT KALYANJI RAJPOPAT}

^{*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 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