MIRA INFORM REPORT

Report Date :

22.08.2007

IDENTIFICATION DETAILS

Name :	SIT LEY TIMBER PTE LTD

Registered Office :	^{46 Sungei Kadut Street}^{1, Singapore – 729350}

Country :	Singapore

Financials (as on) :	30.12.2005

Date of Incorporation :	^29/09/1984

Com. Reg. No.:	^198403572E

Legal Form :	^{Pte Ltd}

Line of Business :	Manufactures, Processors, Fabricators, Importers, and Exporters of Timber, Plywood, Furniture, Building Materials and Equipment of all Descriptions, Trading in Electronic Goods and Engages as Building Contractor

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 :	Regular

Litigation :	Clear

Subject Company

SIT LEY TIMBER PTE LTD

Line Of Business

MANUFACTURES, PROCESSORS, FABRICATORS, IMPORTERS, AND EXPORTERS OF TIMBER, PLYWOOD, FURNITURE, BUILDING MATERIALS AND EQUIPMENT OF ALL DESCRIPTIONS, TRADING IN ELECTRONIC GOODS AND ENGAGES AS BUILDING CONTRACTOR

Parent Company

Financial Elements

FY 2005

COMPANY

Sales : S$32,434,866

Networth : S$9,694,376

Paid-Up Capital : S$3,572,500

Net result : S$201,697

Net Margin(%) : 0.62

Return on Equity(%) : 2.08

Leverage Ratio : 2.88

Based on the with the Accounting and Corporate Regulatory Authority (ACRA) as at 17/08/2007, the paid-up share capital has increased to S$5,592,500.

COMPANY IDENTIFICATION

^{Subject Company : SIT
LEY TIMBER PTE LTD}

^{Former Name : -}

^{Business Address: 46 SUNGEI KADUT STREET
1}

^{Town: SINGAPORE}

^{Postcode: 729350}

^{County: -}

^{Country: Singapore}

^{Telephone: 6368
5244}

^{Fax: 6368 7606}

^{ROC Number: 198403572E}

^Reg.^Town^{:
-}

SUMMARY

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

^{Legal Form: Pte
Ltd}

^{Date Inc.: 29/09/1984}

^{Previous Legal Form: -}

^{Summary year : 31/12/2005}

^{Sales: 32,434,866}

^{Networth : 9,694,376}

^{Capital: -}

^{Paid-Up Capital: 3,572,500}

^{Employees: 50}

^{Net result : 201,697}

^{Share value: -}

^{AUDITOR: S
S ANG & CO}

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

^{NO. OF
SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 64,250,000 SGD 5,592,500.00}

^{PAID-UP ORDINARY - SGD 5,592,500.00}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 29/09/1984}

PRINCIPAL(S)

^{TAN ANG PIAW S2532801I Managing Director}

DIRECTOR(S)

^{TAN ANG PIAW S2532801I Managing Director}

^{Appointed on : 01/06/1994}

^{Street : 101 WOODLANDS STREET
13}

^#08-30

^{Town: SINGAPORE}

^{Postcode: 730101}

^{Country: Singapore}

^{KOH JIUN HAU S2561462C Company Secretary}

^{Appointed on : 15/05/1990}

^{Street : 73 SENNETT AVENUE}

^{EAST COAST HILL}

^{Town: SINGAPORE}

^{Postcode: 467081}

^{Country: Singapore}

^{SIM LEY YANG S0237222C Director}

^{Appointed on : 01/06/1994}

^{Street : 101 WOODLANDS STREET
13}

^#08-30

^{Town: SINGAPORE}

^{Postcode: 730101}

^{Country: Singapore}

^{TAN ANG PIAW S2532801I Director}

^{Appointed on : 12/05/1988}

^{Street : 101 WOODLANDS STREET
13}

^#08-30

^{Town: SINGAPORE}

^{Postcode: 730101}

^{Country: Singapore}

ACTIVITY(IES)

^{TIMBER - WHSLE Code:21690}

^{CONTRACTORS - BUILDING, GENERAL Code:5490}

^{FURNITURE DEALERS - WHSLE Code:9900}

^{BUILDING MATERIALS Code:2920}

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

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

^{1) WHOLESALE OF SAWN TIMBER, PLYWOOD AND RELATED
PRODUCTS}

^{2) GENERAL CONTRACTORS (BUILDING CONSTRUCTION
INCLUDING MAJOR}

CHARGES

^{Date:
30/12/1999}

^{Comments :
CHARGE NO:
199905851}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): THE DEVELOPMENT BANK OF SINGPAORE LTD}

^{Date:
05/04/2000}

^{Comments :
CHARGE NO:
200001507}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): MALAYAN BANKING BHD}

^{Date:
30/05/2003}

^{Comments :
CHARGE NO:
C200302487}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): MALAYAN BANKING BHD}

^{Date:
11/06/2003}

^{Comments :
CHARGE NO:
C200302723}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): MALAYAN BANKING BHD}

^{Date:
22/04/2004}

^{Comments :
CHARGE NO:
C200402011}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

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

^{Date:
01/07/2004}

^{Comments :
CHARGE NO:
C200403178}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): SING INVESTMENT & FINANCE LTD}

^{Date:
21/09/2004}

^{Comments :
CHARGE NO:
C200404670}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): MALAYAN BANKING BHD}

^{Date:
26/05/2005}

^{Comments :
CHARGE NO:
C200502992}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): STANDARD CHARTERED BANK}

^{Date:
04/10/2006}

^{Comments :
CHARGE NO:
C200606638}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

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

^{Date:
04/04/1997}

^{Comments :
CHARGE NO:
199701992 (DISCHARGED)}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE [S]: UNITED OVERSEAS BANK LTD}

^{Date:
04/10/1991}

^{Comments :
CHARGE NO:
9104189 (DISCHARGED)}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE [S]: UNITED OVERSEAS BANK LTD}

^{Date:
20/11/2003}

^{Comments :
CHARGE NO:
C200305600}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

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

^{Date:
05/06/2000}

^{Comments :
CHARGE
NO:199905842 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING,ETC}

^{CHARGEE(S): THE DEVELOPMENT BANK OF SINGAPORE LIMITED}

^{Date:
05/06/2000}

^{Comments :
CHARGE NO:
199905851 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S):THE DEVELOPMENT BANK OF SINGAPORE LIMITED}

^{Date:
05/06/2000}

^{Comments :
CHARGE NO:
200001507 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): MALAYAN BANKING BERHAD}

^{Date:
19/12/2000}

^{Comments :
CHARGE NO:
200006193, 200006194}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: INDUSTRIAL & COMMERCIAL BANK LIMITED}

PREMISES/PROPERTY INFORMATIONS

^{Date: 09/06/2006 Tax rate: 10}

^{Site Address : 46 SUNGEI KADUT STREET
1}

^{Town: SINGAPORE} ^{Postcode: 729350}

^{Country: Singapore}

^{Annual Value: 1,680,000}

^{Date: 09/06/2006 Tax rate: 10}

^{Site Address : 10 ADMIRALTY STREET}

^#01-77

^{Town: SINGAPORE} ^{Postcode: 757695}

^{Country: Singapore}

^{Annual Value: 40,800}

^{Date: 09/06/2006} ^{Tax rate: 10}

^{Site Address : 70
SUNGEI KADUT LOOP}

^{Town: SINGAPORE} ^{Postcode: 729511}

^{Country: Singapore}

^{Annual Value: 439,000}

* 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}

^{MALAYAN BANKING BHD}

^{STANDARD CHARTERED BANK (HONG
KONG) LIMITED}

^{INDUSTRIAL & COMMERCIAL BANK LIMITED}

^{DBS BANK LTD.}

SHAREHOLDERS(S)

^{SIM LEY YANG
2,000,000 Private Person}

^{Street : 101 WOODLANDS STREET
13}

^#08-30

^{Town:
SINGAPORE}

^{Postcode: 730101}

^{Country: Singapore}

^{TAN ANG PIAW
4,250,000 Private Person}

^{Street : 101 WOODLANDS STREET
13}

^#08-30

^{Town: SINGAPORE}

^{Postcode: 730101}

^{Country: Singapore}

^{GAN CHING FO
2,000,000 Private Person}

^{Street : 59
JALAN BADIK 13}

^{TAMAN
PUTERI WANGSA}

^{ULU TIRAM}

^{Town: JOHOR}

^{Postcode: 81800}

^{Country: Malaysia}

^{SIM SAI NGOO
2,000,000 Private Person}

^{Street : 288B
BUKIT BATOK STREET
25}

^#12-06

^{Town: SINGAPORE}

^{Postcode: 651288}

^{Country: Singapore}

^{SIM LAY HAM
2,000,000 Private Person}

^{Street : 288B
BUKIT BATOK STREET
25}

^#12-08

^{Town:
SINGAPORE}

^{Postcode: 651288}

^{Country: Singapore}

^{KOR JOO SIANG
2,000,000 Private Person}

^{Street : 288B
BUKIT BATOK STREET
25}

^#12-08

^{Town: SINGAPORE}

^{Postcode: 651288}

^{Country: Singapore}

^{WONG HIN THAI
2,000,000 Private Person}

^{Street : 618 WOODLANDS AVENUE
4}

^#07-536

^{Town: SINGAPORE}

^{Postcode: 730618}

^{Country: Singapore}

^{SIM LAY GEOK
2,000,000 Private Person}

^{Street : 154 YISHUN STREET
11}

^#06-184

^{Town: SINGAPORE}

^{Postcode:
760154}

^{Country: Singapore}

^{SIM LAY HWA
2,000,000 Private Person}

^{Street : 652 WOODLANDS RING ROAD}

^#09-374

^{Town: SINGAPORE}

^{Postcode: 730652}

^{Country: Singapore}

^{ONG BEE KIM
2,000,000 Private Person}

^{Street : 435 BUKIT PANJANG RING ROAD}

^#05-663

^{Town: SINGAPORE}

^{Postcode: 670435}

^{Country: Singapore}

^{SIM LEE BENG
2,000,000 Private Person}

^{Street : 508
CHOA CHU KANG STREET 51}

^#06-219

^{Town: SINGAPORE}

^{Postcode: 680508}

^{Country: Singapore}

^{SUDARMAJI BINTI NITI 2,000,000 Private Person}

^{Street : 249 BUKIT BATOK EAST AVENUE
5}

^#09-176

^{Town: SINGAPORE}

^{Postcode: 650249}

^{Country: Singapore}

^{TAN SIEW CHIN
2,000,000 Private Person}

^{Street : 351B
CANBERRA ROAD}

^#14-299

^{Town: SINGAPORE}

^{Postcode: 752351}

^{Country: Singapore}

^{ALVIN SHEN LEE
2,000,000 Private Person}

^{Street : 43
JALAN MUTIARA}

^{DRAGON VIEW
PARK}

^{Town: SINGAPORE}

^{Postcode: 249218}

^{Country: Singapore}

^{CHIN SIN FONG
2,000,000 Private Person}

^{Street : 222
PENDING ROAD}

^#02-121

^{Town: SINGAPORE}

^{Postcode: 670222}

^{Country: Singapore}

^{LAILI BIN SULAIMAN 2,000,000 Private Person}

^{Street : 854 WOODLANDS STREET
83}

^#12-76

^{Town: SINGAPORE}

^{Postcode: 730854}

^{Country: Singapore}

^{GOH JIA RONG
2,000,000 Private Person}

^{Street : 855 WOODLANDS STREET
83}

^#02-56

^{Town: SINGAPORE}

^{Postcode: 730855}

^{Country: Singapore}

^{LIM CHOON LANG 2,000,000 Private Person}

^{Street : 652 WOODLANDS RING ROAD}

^#09-374

^{Town: SINGAPORE}

^{Postcode: 730652}

^{Country: Singapore}

^{LIM KOK CHENG 2,000,000 Private Person}

^{Street : 285 CHOA CHU KANG AVENUE
3}

^#06-306

^{Town: SINGAPORE}

^{Postcode: 680285}

^{Country: Singapore}

^{ANG MENG HENG 2,000,000 Private Person}

^{Street : 823 WOODLANDS STREET
82}

^#07-427

^{Town: SINGAPORE}

^{Postcode: 730823}

^{Country: Singapore}

^{TAN LIAN KEE 2,000,000 Private Person}

^{Street : 159 YISHUN STREET
11}

^#02-176

^{Town: SINGAPORE}

^{Postcode: 760159}

^{Country: Singapore}

^{KOK MAY KUAN
2,000,000 Private Person}

^{Street : 43
JALAN MUTIARA}

^{DRAGON VIEW
PARK}

^{Town: SINGAPORE}

^{Postcode: 249218}

^{Country: Singapore}

^{SIM LAY YEN
2,000,000 Private Person}

^{Street : 288B
BUKIT BATOK STREET
25}

^#12-08

^{Town: SINGAPORE}

^{Postcode: 651288}

^{Country: Singapore}

^{GOH SOCK LIAN
2,000,000 Private Person}

^{Street :
159 YISHUN STREET 11}

^#02-176

^{Town: SINGAPORE}

^{Postcode: 760159}

^{Country: Singapore}

^{TEH GEK POH
2,000,000 Private Person}

^{Street : 265 TOH GUAN ROAD}

^#06-15

^{Town: SINGAPORE}

^{Postcode: 600265}

^{Country: Singapore}

^{SOH HOCK PENG
2,000,000 Private Person}

^{Street : 351B
CANBERRA ROAD}

^#14-299

^{Town: SINGAPORE}

^{Postcode: 752351}

^{Country: Singapore}

^{TEO CHA MING
2,000,000 Private Person}

^{Street : 288B
BUKIT BATOK STREET
25}

^#12-06

^{Town: SINGAPORE}

^{Postcode: 651288}

^{Country: Singapore}

^{TAN KUAN SHENG
2,000,000 Private Person}

^{Street : 101 WOODLANDS STREET
13}

^#08-03

^{Town: SINGAPORE}

^{Postcode: 730101}

^{Country: Singapore}

^{SIM LEE BOEY
2,000,000 Private Person}

^{Street : 32 MARSILING DRIVE}

^#10-339

^{Town: SINGAPORE}

^{Postcode: 730032}

^{Country: Singapore}

^{TAN GUAN QUAN HANSEN 2,000,000 Private Person}

^{Street : 101 WOODLANDS STREET
13}

^#08-30

^{Town:
SINGAPORE}

^{Postcode: 730101}

^{Country: Singapore}

^{TAN SZE YEE HAZEL 2,000,000 Private Person}

^{Street : 101 WOODLANDS STREET
13}

^#08-30

^{Town: SINGAPORE}

^{Postcode: 730101}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{CHONG WAI KAIN
2,000,000}

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: SGD}

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

^{Date Account Lodged: 21/11/2006}

^{Balance Sheet Date: 30/12/2005 31/12/2004 31/12/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^---
ASSETS

^{Tangible Fixed Assets: 15,605,858 16,586,622 17,267,335}

^{Total Fixed Assets: 15,605,858 16,586,622 17,267,335}

^{Inventories: 3,696,139 2,892,833 2,253,751}

^{Receivables: 11,664,923 14,081,866 13,227,398}

^{Cash,Banks, Securitis: 5,473,643 5,277,618 2,131,543}

^{Other current assets: 1,177,653 1,293,914 1,865,526}

^{Total Current Assets: 22,012,358 23,546,231 19,478,218}

^{TOTAL ASSETS: 37,618,216 40,132,853 36,745,553}

^{---
LIABILITIES}

^{Equity capital: 3,572,500 3,572,500 3,000,000}

^{Profit & loss
Account: 6,121,876 8,089,179 10,058,744}

^{TOTAL EQUITY: 9,694,376 11,661,679 13,058,744}

^{Long Term Loans: 6,585,544 7,390,649 8,027,043}

^{L/T deffered taxes: 611,489 618,969 672,123}

^{Other long term Liab.: 280,019 291,096 381,539}

^{Total L/T Liabilities: 7,477,052 8,300,714 9,080,705}

^{Trade Creditors: 3,149,754 2,811,846 1,867,521}

^{Prepay. & Def. charges:
285,392 264,177 271,798}

^{Short term
liabilities: 103,217 117,230 209,893}

^{Advanced payments: - - 278,382}

^{Due to Bank: 13,781,024 15,241,024 11,333,566}

^{Provisions: 232,065 325,150 506,992}

^{Other Short term
Liab.: 2,895,336 1,411,033 137,952}

^{Total short term
Liab.: 20,446,788 20,170,460 14,606,104}

^{TOTAL LIABILITIES: 27,923,840 28,471,174 23,686,809}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 32,434,866 37,604,734 30,786,154}

^{Gross Profit: 3,824,201 4,914,198 4,209,682}

^{Result of ordinary
operations - - 1,137,166}

^{NET RESULT BEFORE TAX: 368,852 267,281 728,347}

^{Tax : 167,155 67,846 390,904}

^{Net income/loss year: 201,697 199,435 337,443}

^{Interest Paid: 1,147,040 1,082,450 1,094,323}

^{Depreciation: 1,179,654 1,238,596 937,281}

^{Dividends: 2,169,000 2,169,000 -}

^{Directors Emoluments: 221,000 221,000 255,500}

^{Purchases,Sces & Other}

^{Goods:
28,610,665
32,690,536           26,576,472}

^{Wages and Salaries: 1,362,522 1,307,903 475,686}

^{Financial Income: 81,769 27,743 52,680}

RATIOS

^{30/12/2005 31/12/2004 31/12/2003}

^{Turnover per employee: 648697.32 752094.68 615723.08}

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

^{Fin. Charges /
Turnover(%):0.04
0.03 0.04}

^{Stock / Turnover(%): 0.11 0.08 0.07}

^{Net Margin(%): 0.62 0.53 1.10}

^{Return on Equity(%): 2.08 1.71 2.58}

^{Return on Assets(%): 0.54 0.50 0.92}

^{Dividends Coverage: 0.09 0.09 0.09}

^{Net Working capital: 1565570.00 3375771.00 4872114.00}

^{Cash Ratio: 0.27 0.26 0.15}

^{Quick Ratio: 0.84 0.96 1.05}

^{Current ratio: 1.08 1.17 1.33}

^{Receivables Turnover: 129.47 134.81 154.68}

^{Leverage Ratio: 2.88 2.44 1.81}

^{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
WITH NET WORTH DECLINING BY 16.87% FROM S$11,661,679 IN FY 2004 TO S$9,694,376
IN FY 2005. THIS WAS DUE TO LOWER ACCUMULATED PROFIT OF S$6,121,876 (2004:
S$8,089,179); A DECLINE OF 24.32% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY
FINANCED BY AMOUNT DUE TO BANKS WHICH MADE UP 67.39% (2004: 75.56%) OF THE
TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$13,781,024 (2004: S$15,241,024).
THE BREAKDOWN IS AS FOLLOWS:}

^{-BANK OVERDRAFTS - 2005: S$4,897,524 (2004:
S$3,886,530)}

^{-BILLS PAYABLE - 2005: S$8,087,485 (2004: S$10,527,320)}

^{-TERM LOANS - 2005: S$796,015 (2004:
S$827,174)}

^{IN THE LONG-TERM, SUBJECT WAS LARGELY
FINANCED BY LONG-TERM LOANS WHICH MADE UP 88.08% (2004: 89.04%) OF THE TOTAL
CURRENT LIABILITIES AND AMOUNTED TO S$6,585,544 (2004: S$7,390,649). THE
BREAKDOWN IS AS FOLLOWS:}

^{-REPAYABLE WITHIN TWO TO FIVE YEARS - 2005:
S$3,272,172 (2004: S$3,184,985)}

^{-REPAYABLE AFTER FIVE YEARS - 2005:
S$3,313,372 (2004: S$4,205,664)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 2.44 TIMES
TO 2.88 TIMES AS A RESULT OF A GREATER DECLINE 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 FELL TO 1.08 TIMES, DOWN FROM 1.17 TIMES AND QUICK RATIO FELL TO
0.84 TIMES FROM 0.96 TIMES IN FY 2004.}

^{NET WORKING CAPITAL FELL BY 53.62% FROM
S$3,375,771 IN FY 2004 TO S$1,565,570.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-CASH AND BANK BALANCES - 2005: S$184,456
(2004: S$527,669)}

^{-FIXED DEPOSITS - 2005: S$5,289,187 (2004:
S$4,749,949)}

^REVENUE:

^{-SALES OF TIMBER & RELATED PRODUCTS -
2005: S$31,504,643 (2004: S$29,538,442)}

^{-SALES OF ELECTRONIC COMPONENTS - 2005: -
(2004: S$6,268,028)}

^{-SALES OF PETROLEUM COKE - 2005: - (2004:
S$1,466,590)}

^{-CONTRACT INCOME - 2005: S$930,223 (2004:
S$331,674)}

^{PROFITABILITY:}

^{REVENUE POSTED A DECLINE OF 13.75% FROM
S$37,604,734 IN FY 2004 TO S$32,434,866 BUT NET PROFIT ROSE BY 1.13% TO
S$201,697 (2004: S$199,435). THIS COULD BE DUE TO LOWER OTHER OPERATING
EXPENSES OF S$157,727 IN FY 2005 (2004: S$272,421). HENCE, NET MARGIN ROSE TO
0.62% (2004: 0.53%).}

^{DEBT SERVICING}^:

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

^{AVERAGE COLLECTION PERIOD HAS SHORTENED FROM
134.81 DAYS TO 129.47 DAYS. A SHORTER AVERAGE COLLECTION PERIOD POSES LESSER
RISK OF TURNING INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT
SERVICING ABILITY MAY BE AFFECTED IF TRADE RECEIVABLES ARE NON FORTHCOMING.}

^{NOTES TO THE
FINANCIAL STATEMENTS:}

^{BANK BORROWINGS}

^{-BANK OVERDRAFTS - 2005: S$4,897,524 (2004:
S$3,886,530)}

^{-BILLS PAYABLE - 2005: S$8,087,485 (2004: S$10,527,320)}

^{-TERM LOANS - 2005: S$7,381,559 (2004:
S$8,217,823)}

^{THE PRINCIPAL OF BORRROWINGS ARE REPAYABLE AS
FOLLOWS:}

^{ON DEMAND OR WITHIN ONE YEAR}

^{-BANK OVERDRAFTS - 2005: S$4,897,524 (2004:
S$3,886,530)}

^{-BILLS PAYABLE - 2005: S$8,087,485 (2004: S$10,527,320)}

^{-TERM LOANS - 2005: S$796,015 (2004:
S$827,174)}

^{TERM LOANS}

^{-REPAYABLE WITHIN TWO TO FIVE YEARS - 2005:
S$3,272,172 (2004: S$3,184,985)}

^{-REPAYABLE AFTER FIVE YEARS - 2005:
S$3,313,372 (2004: S$4,205,664)}

^{TOTAL BANK BORROWINGS - 2005: S$20,366,568
(2004: S$22,631,673)}

^{THE AVERAGE EFFECTIVE INREREST RATES PAID IN
APPROXIMATION WERE AS FOLLOWS:}

^{BANK OVERDRAFTS - 2005: 6.31% (2004: 6.42%)}

^{BILLS PAYABLE
- 2005: 6.25% (2004: 6.31%)}

^{TERM LOANS - 2005: 4.13% (2004: 3.76%)}

^{TERM LOANS CONSIST OF:}

^{A) IN MAY 2003, TERM LOAN OF S$718,560 WAS
RAISED TO FINANCE THE COMPANY'S PURCHASE OF A LEASEHOLD PROPERTY. THIS TERM
LOAN IS REPAYABLE BY 240 MONTHLY INSTALMENTS COMMENCING JUNE 2003 AND IS
SECURED BY A LEGAL MORTGAGE OF THE SUBJECT PROPERTY, COMPANY'S FIXED DEPOSITS
AS WELL AS
JOINT AND SEVERAL GUARANTEE FROM BOTH DIRECTORS OF THE COMPANY. INTEREST IS
CHARGEABLE AT 3.28% P.A FOT THE FIRST YEAR, 3.58% P.A FOR THE SECOND YEAR, AT
1.47% P.A BELOW BANKER'S PRIME RATE FOR THE THIRD YEAR AND THEREAFTER AT 0.6%
P.A. BELOW BANKER'S PRIME RATE.}

^{B) IN DECEMBER 2003, TERM LOAN OF S$8,000,000
WAS RAISED FOR WORKING CAPITAL PURPOSE. THIS TERM LOAN IS REPAYABLE BY 120
MONTHLY INSTALMENTS COMMENCING JANUARY 2004 AND IS SECURED BY THE COMPANY'S
LEASEHOLD PROPERTIES AND FIXED DEPOSITS AS WELL AS
JOINT AND SEVERAL GUARANTEE FROM BOTH DIRECTORS OF THE COMPANY. INTEREST IS
CHARGEABLE AT 4% P.A FOT THE FIRST YEAR, 4.25% P.A FOR THE SECOND YEAR AND
THEREAFTER AT 0.25% P.A. OVER BANKER'S PRIME RATE.}

^{C) IN AUGUST 2004, A TERM LOAN OF S$252,000
WAS RAISED TO FINANCE THE COMPANY'S PURCHASE OF PLANT AND EQUIPMENT. THIS TERM
LOAN IS REPAYABLE BY 24 MONTHLY INSTALMENTS COMMENCING FROM AUGUST 2004 AND IS
SECURED BY A FIXED CHARGE OF THE SUBJECT'S PLANT AND EQUIPMENT, AS WELL AS
JOINT AND SEVERAL GUARANTEE FROM BOTH DIRECTORS OF THE COMPANY. INTEREST IS
CHARGEABLE AT 3.5% FLAT P.A.}

^{AS AT THE BALANCE SHEET DATE, EXECUTED
BANKING FACILITIES:}

^{NOT REFLECTED IN THE FINANCIAL STATEMENTS
INCLUDED THE FOLLOWING:}

^{-LETTER OF CREDITS}

^{- IN S$ - 2005: - (2004: S$10,256)}

^{- IN USD -
2005: S$112,324 (2004: -)}

^{FORWARD FOREIGN CURRENCY CONTRACT - 2005:
S$452,928 (2004: 871,429)}

^{-INWARD BILLS FOR COLLECTION}

^{- IN S$ - 2005: - (2004: S$28,350)}

^{- IN USD -
2005: S$139,619 (2004: S$99,156)}

^{SHIPPING GUARANTEE - 2005: S$65,268 (2004:
S$119,608)}

^{BESIDES THE ABOVE, THERE IS A BANKER'S
GUARANTEE AMOUNTING TO S$NIL (2004: S$711,526) EXECUTED BY THE COMPANY IN
FAVOUR OF A THIRD PARTY.}

^{BILLS PAYABLE, BANK OVERDRAFT FACILITIES AND
EXECUTED BANKING FACILITIES ARE SECURED BY ONE OR MORE OF THE FOLLOWING
TOGETHER WITH JOINT AND SEVERAL GUARANTEE FROM BOTH THE COMPANY'S DIRECTORS:}

^{-CERTAIN FIXED DEPOSITS WITH BANK}

^{-PROPERTIES OF THE COMPANY}

^{-PERSONAL PROPERTIES OF THE DIRECTORS}

^{BANK BORROWINGS ARRANGED AT FIXED RATES
EXPOSE THE COMPANY TO FAIR VALUE INTEREST RATE RISK AND THOSE ARRANGED AT
FLOATING RATES EXPOSE THE COMPANY TO CASH FLOW INTEREST RATE RISK.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 29/09/1984 AS A LIMITED
PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "SIT LEY
TIMBER PTE LTD".}

^{AS AT 17/08/2007, THE COMPANY HAS AN ISSUED
AND PAID-UP CAPITAL OF 64,250,000 SHARES OF A VALUE OF S$5,592,500.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF SAWN TIMBER, PLYWOOD AND
RELATED PRODUCTS}

^{2) GENERAL CONTRACTORS (BUILDING CONSTRUCTION
INCLUDING MAJOR UPGRADING WORKS)}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE
PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF MANUFACTURES, PROCESSORS,
FABRICATORS, IMPORTERS, AND EXPORTERS OF TIMBER, PLYWOOD, FURNITURE, BUILDING
MATERIALS AND EQUIPMENT OF ALL DESCRIPTIONS, TRADING IN ELECTRONIC GOODS AND
ENGAGES AS BUILDING CONTRACTOR. FROM THE
RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* MANUFACTURER OF ALL KINDS OF TIMBER
MOULDINGS, CUSTOM-MADE DOORS, FRAMES, ARCHITRAVE, SOLID CABINET DOORS,
DECORATIVE TIMBER FRAMES, PANELS ETC; STOCKIST & SUPPLIER OF ALL KINDS
TIMBER AND PLYWOOD (EG. CHERRY, MAPLE, OAK, ASH, BEECH, TEAK, NYATOH, MERANTI
ETC).}

^{IMPORT COUNTRIES:}

^{* INDONESIA}

^{* MALAYSIA}

^{* MYANMAR}

^{* UNITED STATES OF AMERICA}

^{* EUROPE}

^{* ETC}

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

^{* SINGAPORE TIMBER ASSOCIATION}

^{* SINGAPORE CONTRACTORS ASSOCIATION LIMITED}

^{FROM THE TELE-INTERVIEW CONDUCTED ON
22/08/2007, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2007: 50+}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON
22/08/2007.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: 56;
2003: 61)}

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

^{REGISTERED AND BUSINESS ADDRESS:}

^{46 SUNGEI KADUT
STREET}¹

^SINGAPORE⁷²⁹³⁵⁰

^{DATE OF CHANGE OF ADDRESS: 15/03/2002}

^{- OWNED PREMISE}

^{- DATE OF CHANGE OF ADDRESS: 15/03/2002}

^{OTHER BUSINESS ADDRESS:}

^{70 SUNGEI KADUT LOOP}

^SINGAPORE⁷²⁹⁵¹¹

^{YOUR PROVIDED CONTACT NUMBERS:}

^{TEL: 6367 0988}

^{FAX: 6366 0788}

^{- BOTH THE CONTACT NUMBERS ARE CORRECT}

^WEBSITE:

^EMAIL:

^{sitley@singnet.com.sg}

MANAGEMENT

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

^{1) SIM LEY YANG, A SINGAPOREAN}

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

^{BEAUTY WOOD MATERIAL & HARDWARE PTE LTD}

^{2) TAN ANG PIAW, A SINGAPORE PERMANENT RESIDENT}

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

^{CASA MIA DESIGN PTE LTD}

BEAUTY WOOD MATERIAL & HARDWARE 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.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMY GREW BY 6.1% IN QUARTER 1 OF 2007 AFTER A 6.6% GROWTH IN QUARTER 4 OF 2006. THE GROWTH MOMENTUM EASED SLIGHTLY TO 7.6% IN 1Q 2007, COMPARED WITH 7.9% A QUARTER EARLIER. GROWTH IN QUARTER 1 WAS LED BY THE FINANCIAL SERVICES AND CONSTRUCTION SECTORS. THE MANUFACTURING SECTOR CONTINUED TO EXPERIENCE A MODERATION IN GROWTH.

THE FINANCIAL SERVICES SECTOR SIGNIFICANTLY INCREASED BY 13% IN 1Q 2007 ON THE HEELS OF THE 11% GROWTH A QUARTER AGO. THE STRONG PERFORMANCE WAS ACROSS ALL MAJOR FINANCIAL SEGMENTS, PARTICULARLY IN THE CAPITAL AND MONEY MARKETS. FUND MANAGEMENT ACTIVITIES REMAINED BOUYANT, IN LINE WITH THE CONTINUED STRENGTH IN ECONOMIC CLIMATE. SIMILARLY, BANKS SAW STRONG GROWTH, BOUYED BY SUSTAINED RESILIENCE IN THE ASIA DOLLAR MARKET AS WELL AS A STEADY INCREASE IN DOMESTIC LENDING ACTIVITY.

THE CONSTRUCTION SECTOR GREW BY 9.7% IN 1Q 2007, ITS STRONGEST GROWTH IN 9 YEARS. CERTIFIED PAYMENTS INCREASE BY 9.5% IN 1Q 2007, SUPPORTED BY STRONG GROWTH IN THE PRIVATE RESIDENTIAL, COMMERCIAL AND INDUSTRIAL SEGMENTS AS WELL AS PUBLIC RESIDENTIAL SEGMENT. HOWEVER, CONTRACTS AWARDED FELL BY 11% IN 1Q 2007, DUE MAINLY TO THE DROP IN THE PRIVATE COMMERCIAL AND PUBLIC INSTITUTIONAL SEGMENTS.

MANUFACTURING SECTOR INCREASED BY 4.3% IN 1Q 2007, DOWN FROM 7.7% IN THE PREVIOUS QUARTER. BOTH BIOMEDICAL MANUFACTURING (-5.0%) AND PRECISION ENGINEERING (-0.7%) CLUSTERS SAW LOWER PRODUCTION DURING THE QUARTER. THE ELECTRONICS CLUSTER, HOWEVER, RECOVERED FROM A 4.1% CONTRACTION IN 4Q 2006 TO REGISTER AN INCREASE OF 2.6% IN 1Q 2007. THE TRANSPORT ENGINEERING CLUSTER CONTINUED TO EXPAND STRONGLY AT 23%, FOLLOWING A 25% INCREASE IN 4Q 2006.

THE WHOLESALE AND RETAIL TRADE SECTOR EXPANDED 6.7% IN 1Q 2007 AFTER A 6.9 GROWTH IN 4Q 2006. RETAIL SALES GROWTH EASED FROM 7.9% IN THE PREVIOUS QUARTER TO 6.1% IN 1Q 2007, MAINLY DUE TO A DECELERATION IN MOTOR VEHICLES SALES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.9%, UP FROM 4.2% IN 4Q 2006. IN THE WHOLESALE SEGMENT, GROWTH OF NON-OIL RE-EXPORTS REMAINED FIRM AT 5.9%, SLOWER THAN 6.3% IN 4Q 2006.

THE TRANSPORT AND STORAGE SECTOR GREW 4.4% IN 1Q 2007, UP FROM 4.0% A QUARTER EARLIER. THE AIR SEGMENT SAW A SLOWDOWN DUE TO A MODERATION IN AIR PASSENGER TRAFFIC GROWTH AND A DECLINE IN AIR CARGO. STRONGER ACTIVITY WAS RECORDED IN THE SEA SEGMENT ON THE BACK OF BETTER PERFORMANCE IN SEA CARGO HANDLED AND CONTAINER THROUGHPUT.

THE HOTELS AND RESTAURANTS SECTOR REGISTERED A SLOWER GROWTH OF 4.7% IN 1Q 2007, DOWN FROM 6.1% 4Q 2006. VISITOR ARRIVALS GREW AT A MORE MODEST PACE OF 4.1% COMPARED TO 8.4% IN THE PREVIOUS QUARTER. THE INCREASE IN HOTEL ROOM REVENUE MODERATED FROM THE 21% GAIN IN 4Q 2006 TO 14% IN 1Q 2007. HOWEVER, THE AVERAGE OCCUPANCY RATE OF HOTELS REMAINED HIGH AT 87%, A 4.3% POINTS INCREASE OVER THE CORRESPONDING PERIOD LAST YEAR.

THE INFORMATION AND COMMUNICATIONS SECTOR GREW 6.6% IN 1Q 2007, UP FROM 6.0% IN THE PREVIOUS QUARTER. WHILE THE IT SEGMENT SAW SOME MODERATION IN ACTIVITIES, THE TELECOMMUNICATIONS SEGMENT PERFORMED BETTER. INTERNATIONAL TELEPHONE CALL DURATION WENT UP SHARPLY BY 19%, UP FROM 11% IN 4Q 2006. GROWTH IN THE NUMBER OF MOBILE SUBSCRIBERS AND BROADBAND SUBSCRIBERS ALSO REMAINED STRONG DURING THE QUARTER.

BUSINESS SERVICES SECTOR EXPANDED BY 6.6% IN 1Q 2007, BETTER THAN THE 5.4% POSTED IN 4Q 2006. ROBUST PERFORMANCE WAS SEEN IN THE REAL ESTATE SEGMENT ON THE BACK OF CONTINUED STRENGTH IN THE LUXURY PROPERTY MARKET. THE SECTOR WAS ALSO WELL SUPPORTED BY THE OTHER SEGMENTS, PARTICULARLY BUSINESS REPRESENTATIVE OFFICES, AND BUSINESS & MANAGEMENT CONSULTANCY ACTIVITIES.

OUTLOOK

THE ECONOMIC OUTLOOK IS GENERALLY POSITIVE BUT SOME DOWNSIDE RISKS REMAIN. THESE INCLUDE A SLOWDOWN IN THE US ECONOMY, VULNERABILITY OF OIL PRICES TO SUPPLY SHOCKS AND A DISORDERLY UNWINDING OF GLOBAL UNBALANCES. BARRING THESE UNCERTAINTIES, ECONOMIC GROWTH IS EXPECTED TO REMAIN HEALTHY IN 2007.

BUSINESS SENTIMENTS ARE GENERALLY POSITIVE IN THE FINANCIAL SERVICES INDUSTRY. BANKS AND FINANCE COMPANIES, FUND MANAGEMENT FIRMS AND INSURANCE COMPANIES EXPECT AN IMPROVEMENT IN THE BUSINESS CLIMATE IN THE COMING MONTHS.

AN OVERALL NET WEIGHTED BALANCE OF 61% OF FIRMS IN THE REAL ESTATE INDUSTRY EXPECTS BETTER BUSINESS CONDITIONS FOR THE NEXT 6 MONTHS. WITHIN THE INDUSTRY, REAL ESTATE DEVELOPERS AND AGENTS FORESEE BRISK BUSINESS ACTIVITY AHEAD.

MANUFACTURING SECTORS ARE MORE OPTIMISTIC IN THE NEXT 6 MONTHS COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN 7% RECORDED A QUARTER AGO.

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

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

WITHIN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 18% OF FIRMS FORECASTS IMPROVED BUSINESS PROSPECTS FOR THE NEXT 6 MONTHS. IN PARTICULAR, FIRMS IN THE WATER TRANSPORT AND SUPPORTING SERVICES EXPECT HIGHER LEVEL OF BUSINESS ACTIVITY.

HOTELIERS PROJECT A FAVOURABLE BUSINESS OUTLOOK, WHICH IS IN TANDEM WITH THE POSITIVE SENTIMENTS IN THE TOURISM MARKET. FOR THE CATERING TRADE INDUSTRY, BUSINESS OUTLOOK IN THE COMING MONTHS REMAINS THE SAME.

FIRMS IN THE INFORMATION AND COMMUNICATION INDUSTRY ANTICIPATES A HIGHER LEVEL OF BUSINESS ACTIVITY, WITH A POSITIVE NET WEIGHTED BALANCE OF 12%.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSES POSITIVE SENTIMENTS. THESE INCLUDE FIRM ENGAGED IN RENTING OF CONSTRUCTION & INDUSTRIAL MACHINERY, ARCHITECTURAL & ENGINEERING, SPECIALISED DESIGN AND LABOUR RECRUITMENT SERVICES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

CHANNELNEWS ASIA

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