MIRA INFORM REPORT

Report Date :

10.12.2007

IDENTIFICATION DETAILS

Name :	NICO STEEL SOLUTIONS (S) PTE LTD
Registered Office :	^48 Changi South Street 1, Changi South Industrial Estate, Singapore – 486130
Country :	^Singapore
Financials (as on) :	28.02.2007
Date of Incorporation :	^07/07/1995
Com. Reg. No.:	^199504753E
Legal Form :	^Exempt Pte Ltd
Line of Business :	Provision of Metal Slitting Services and Import and Export Trading.

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

NICO STEEL SOLUTIONS (S) PTE LTD

Line Of Business 

PROVISION OF METAL SLITTING SERVICES AND IMPORT AND EXPORT TRADING.

Parent Company

NICO STEEL HOLDINGS LIMITED

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY2007

COMPANY

Sales : US$28,136,420

Networth : US$2,469,554

Paid-Up Capital : US$638,654

Net result : US$717,787

Net Margin(%) : 2.55

Return on Equity(%) : 29.07

Leverage Ratio : 7.87

COMPANY IDENTIFICATION

^{Subject Company : NICO STEEL SOLUTIONS (S) PTE. LTD.}

^{Former Name : NICO STEEL CENTRE (S) PTE LTD}

^{Business Address: 48 CHANGI SOUTH STREET 1}

^{CHANGI SOUTH INDUSTRIAL ESTATE}

^{Town: SINGAPORE}

^{Postcode: 486130}

^{Country: Singapore}

^{Telephone: 6542 1886}

^{Fax: 6542 1986}

^{ROC Number: 199504753E}

^{Reg. Town:}

PREVIOUS IDENTIFICATION

^{NICO STEEL CENTRE (S) PTE LTD DATE OF CHANGE OF NAME: 29/10/2002}

SUMMARY

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

^{Legal Form: Exempt Pte Ltd}

^{Date Inc.: 07/07/1995}

^{Summary year : 28/02/2007}

^{Sales: 28,136,420}

^{Networth : 2,469,554}

^Capital:

^{Paid-Up Capital: 638,654}

^Employees:

^{Net result : 717,787}

^{Share value:}

^{AUDITOR: KPMG}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 07/07/1995}

PRINCIPAL(S)

^{TAN CHEE KHIONG S1724457D Director}

DIRECTOR(S)

^{TAN CHEE KHIONG S1724457D Director}

^{Appointed on : 07/07/1995}

^{Street : 20A RICHARDS AVENUE}

^{Town: SINGAPORE}

^{Postcode: 546429}

^{Country: Singapore}

^{TANG CHEE BIAN S1805146Z Director}

^{Appointed on : 24/02/1997}

^{Street : 20A RICHARDS AVENUE}

^{Town: SINGAPORE}

^{Postcode: 546429}

^{Country: Singapore}

^{TANG HEE KYA S2572915C Director}

^{Appointed on : 24/02/1997}

^{Street : 20A RICHARDS AVENUE}

^{Town: SINGAPORE}

^{Postcode: 546429}

^{Country: Singapore}

^{TANG CHEE WEE S6909127Z Director}

^{Appointed on : 24/02/1997}

^{Street : 22A RICHARDS AVENUE}

^{Town: SINGAPORE}

^{Postcode: 546432}

^{Country: Singapore}

^{TAN CHEE KHIONG S1724457D Company Secretary}

^{Appointed on : 30/11/2005}

^{Street : 20A RICHARDS AVENUE}

^{Town: SINGAPORE}

^{Postcode: 546429}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{LEO CHIN EN S0077269J}

^{CHUA WUI MENG S1654471Z}

^{CHUA HWEE HOW S1685750E}

^{YUN CHEE KEEN S7233278D}

^{PUAH SOON MONG TONY S6841192J}

ACTIVITY(IES)

^{METAL SPECIALTIES Code:13890}

^{TRADING COMPANIES Code:22190}

^{STEEL PRODUCTS Code:20410}

^{ALUMINIUM PRODUCTS Code:750}

^{BASED ON ACRA'S RECORD AS AT 05/12/2007}

^{1) MANUFACTURE/REPAIR OF MACHINERY AND MACHINE-TOOLS-METAL CUTTING TYPES (EG LATHES)}

CHARGES

^{Date: 19/01/2006}

^{Comments : CHARGE NO: C200600486}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): STANDARD CHARTERED BANK}

^{Date: 20/08/2003}

^{Comments : CHARGE NO: C200303990}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): BANGKOK BANK PUBLIC CO LTD}

^{Date: 03/03/1998}

^{Comments : CHARGE NO: 199801178}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

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

^{Date: 29/07/1996}

^{Comments : CHARGE NO: 9604392}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

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

^{Date: 09/12/1997}

^{Comments : CHARGE NO: 199707611 (DISCHARGED - 19/10/2001)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): CITIBANK N.A.}

^{Date: 04/08/2000}

^{Comments : CHARGE NO: 200003626}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): MALAYAN BANKING BERHAD}

^{Date: 21/05/2001}

^{Comments : CHARGE NO: 200102315 (DISCHARGED - 03/02/2004)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): KEPPEL TATLEE BANK LIMITED}

PREMISES/PROPERTY INFORMATIONS

^{Date : 04/07/2007}

^{Tax rate : 10}

^{Site Address : 48 CHANGI SOUTH STREET 1}

^{CHANGI SOUTH INDUSTRIAL ESTATE}

^{Town : SINGAPORE}

^{Postcode : 486130}

^{Country : Singapore}

^{Annual Value : 469,000}

* 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).

BANKERS

^{DBS BANK LTD.}

^{CITIBANK N.A.}

^{MALAYAN BANKING BHD}

^{UNITED OVERSEAS BANK LIMITED}

^{BANGKOK BANK PUBLIC COMPANY LIMITED}

^{STANDARD CHARTERED BANK (HONG KONG) LIMITED}

SHAREHOLDERS(S)

^{NICO STEEL HOLDINGS LIMITED 900,000 Company}

^{Street : 48 CHANGI SOUTH STREET 1}

^{NICO BUILDING}

^{CHANGI SOUTH INDUSTRIAL ESTATE}

^{Town: SINGAPORE}

^{Postcode: 486130}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{CHUA WUI MENG 135,000}

^{TAN CHEE KHIONG 225,000}

^{TANG CHEE BIAN 225,000}

^{TANG HEE KYA 225,000}

^{TANG CHEE WEE 225,000}

^{CHUA HWEE HOW 135,000}

HOLDING COMPANY

^{NICO STEEL HOLDINGS LIMITED 200104166D % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation: AVERAGE}

FINANCIAL ELEMENTS

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

^{Date Account Lodged: 11/07/2007}

^{Balance Sheet Date: 28/02/2007 28/02/2006}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Intangible Fixed Assets: 26,440 27,487}

^{Tangible Fixed Assets: 2,490,097 2,615,542}

^{Total Fixed Assets: 2,516,537 2,643,029}

^{Inventories: 3,807,821 3,383,981}

^{Receivables: 10,463,883 3,824,198}

^{Cash,Banks, Securitis: 4,619,144 3,508,910}

^{Other current assets: 279,216 1,240,919}

^{Total Current Assets: 19,170,064 11,958,008}

^{TOTAL ASSETS: 21,686,601 14,601,037}

^{--- LIABILITIES ---}

^{Equity capital: 638,654 638,654}

^{Profit & lost Account: 1,830,900 3,484,916}

^{Total Equity: 2,469,554 4,123,570}

^{Long Term Loans: 2,297,619 1,638,382}

^{L/T deffered taxes: 38,740 38,740}

^{Other long term Liab.: - 2,003}

^{Total L/T Liabilities: 2,336,359 1,679,125}

^{Trade Creditors: 1,034,674 463,838}

^{Prepay. & Def. charges: 41,011 36,092}

^{Short term liabilities: 2,121 16,499}

^{Due to Bank: 14,082,060 7,913,940}

^{Provisions: 212,462 73,275}

^{Other Short term Liab.: 1,508,360 294,698}

^{Total short term Liab.: 16,880,688 8,798,342}

^{TOTAL LIABILITIES: 19,217,047 10,477,467}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 28,136,420 12,858,426}

^{Gross Profit: 2,632,993 1,720,811}

^{Result of ordinary operations 1,658,581 780,072}

^{NET RESULT BEFORE TAX: 952,485 368,777}

^{Tax : 234,698 129,311}

^{Net income/loss year: 717,787 239,466}

^{Interest Paid: 706,096 411,295}

^{Depreciation: 129,708 151,218}

^{Dividends: 2,371,803 -}

^{Purchases,Sces & Other Goods: 25,503,427 11,137,615}

^{Wages and Salaries: 758,316 723,679}

^{Financial Income: 184,111 103,769}

RATIOS

^{28/02/2007 28/02/2006}

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

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

^{Stock / Turnover(%): 0.14 0.26}

^{Net Margin(%): 2.55 1.86}

^{Return on Equity(%): 29.07 5.81}

^{Return on Assets(%): 3.31 1.64}

^{Dividends Coverage: 0.30 0.30}

^{Net Working capital: 2289376.00 3159666.00}

^{Cash Ratio: 0.27 0.40}

^{Quick Ratio: 0.89 0.83}

^{Current ratio: 1.14 1.36}

^{Receivables Turnover: 133.88 107.07}

^{Leverage Ratio: 7.87 2.56}

^{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)/1000}

^{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 DECLINE BY 40.11% FROM US$4,123,570 IN FY 2006 TO US$2,469,554 IN FY 2007. THIS WAS DUE TO LOWER ACCUMULATED PROFIT OF US$1,830,900 (2006: US$3,484,916); A FALL OF 47.46% FROM THE PRIOR FINANCIAL YEAR}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY AMOUNT DUE TO BANKS WHICH MADE UP 83.42% (2006: 89.94%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$14,082,060 (2006: US$7,913,940). THE BREAKDOWN IS AS FOLLOWS:}

^{-BILLS PAYABLE- 2007: US$8,093,621 (2006: US$4,423,386)}

^{-BANK OVERDRAFTS- 2007: US$445,981 (2006: US$453,094)}

^{-BANK LOANS- 2007: US$5,542,458 (2006: US$3,037,460)}

^{IN THE LONG-TERM, SUBJECT WAS LARGELY FINANCED BY LONG TERM LOANS WHICH AMOUNTS TO US$2,297,619 (2006: US$1,638,382).}

^{IN ALL, LEVERAGE RATIO ROSE FROM 2.56 TIMES IN FY 2006 TO 7.87 TIMES AS A RESULT OF A FALL IN TOTAL EQUITY AND RISE IN TOTAL LIABILITIES}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.14 TIMES, FROM 1.36 TIMES AND QUICK RATIO IMPROVED TO 0.89 TIMES FROM 0.83 TIMES IN FY 2006. NET WORKING CAPITAL DECLINE BY 27.54% FROM US$3,159,666 IN FY 2006 TO US$2,289,376.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 1.18 TIMES FROM US$12,858,426 IN FY 2006 TO US$28,136,420 NET PROFIT ROSE BY 1.99 TIMES TO US$717,787 (2006: US$239,466). HENCE, NET MARGIN ROSE TO 2.55% (2006: 1.86%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. HOWEVER IT IS NOTED THAT THE INTEREST COVERAGE RATIO WAS LOW AT 2.35 TIMES (2006: 1.89 TIMES), WHICH NEED CAUTION.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{INTEREST BEARING BORROWINGS (SECURED)}

^{1) BANK LOAN A IS SECURED BY A MORTGAGE OVER THE COMPANY'S LEASEHOLD PROPERTY AND GUARANTEED BY ITS IMMEDIATE HOLDING COMPANY. A LOAN OF US$1,478,134 (2006: US$1,480,197) IS PAYABLE IN 205 EQUAL MONTHLY INSTALMENTS COMMENCING FROM DECEMBER 2001. AT BALANCE SHEET DATEM CARIABLE INTEREST IS CHARGED AT 5.5% (2006: 5.25%) PER ANNUM. A LOAN OF US$1,247,971 (2006: NIL) IS PAYABLE IN 11 QUATERLY INSTALMENTS COMMENCING FROM 1 SEPTEMBER 2006. AT BALANCE SHEET DATE, VARIABLE INTEREST IS CHARGED AT 1% PER ANNUM ABOVE THE PREVAILING SIBOR. A LOAN OF US$25,500 (2006: NIL) IS PAYABLE IN 12 MONTHLY INSTALMENTS COMMENCING FROM JUNE 2006. AT BALANCE SHEET DATE, FIXED INTEREST IS CHARGED AT 6% (2006: NIL) PER ANNUM.}

^{2) BANK LOAN B IS SECURED BY A FIXED CHARGE ON FIXED DEPOSITS OF US$432,557 (2006: US$417,470). THE LOAN IS PAYABLE IN 55 MONTHLY INSTALMENTS COMMENCING FROM SEPTEMBER 2003. AT BALANCE SHEET DATE, VARIABLE INTEREST IS CHARGED AT 1.0% (2006: 1.0%) ABOVE SIBOR PER ANNUM.}

^{3) BANK LOAN C IS SECURED BY A FIXED CHARGE OVER THE FIXED DEPOSITS OF THE COMPANY OF US$2,803,380 (2006: S$2,652,282) AND GUARANTEED BY THE IMMEDIATE HOLDING COMPANY. AT THE BALANCE SHEET DATE, VARIABLE INTEREST IS CHARGED AT RATES RANGING FROM 4.4% TO 5.9% (2006: 4.1% TO 4.9% PER ANNUM).}

^{4) BANK LOAN D IS SECURED BY A MACHINERY OF THE COMPANY WITH AN AGGREGATE CARRYING AMOUNT OF US$54,704. THIS LOAN BORE INTEREST AT 5% PER ANNUM AND WAS FULLY REPAID DURING THE FINANCIAL YEAR.}

^{5) BANK LOAN E IS SECURED BY A FIXED CHARGE ON FIXED DEPOSITS OF US$730,867 (2006: NIL) AND GUARANTEE BY ITS IMMEDIATE HOLDING COMPANY. AT BALANCE SHEET DATE, A VARIABLE INTEREST IS CHARGED AT RATES RANGING FROM 6.45% TO 6.54% (2006: NIL) PER ANNUM}

^{SECURED BANK OVERDRAFTS:}

^{1) BANK OVERDRAFT A FACILITY IS SECURED BY A LEGAL MORTGAGE ON THE COMPANY'S LEASEHOLD PROPERTY AND GUARANTEED BY ITS IMMEDIATE HOLDING COMPANY.}

^{2) BANK OVERDRAFT B FACILITY IS SECURED BY A FIXED CHARGE OVER THE FIXED DEPOSITS OF THE COMPANY OF US$2,803,380 (2006: US$2,652,282) AND GUARANTEED BY ITS IMMEDIATE HOLDING COMPANY.}

^{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 07/07/1995 AS A LIMITED EXEMPT PRIVATE COMPANY UNDER THE NAMESTYLE OF "NICO STEEL CENTRE (S) PTE LTD"}

^{SUBSEQUENTLY ON 29/10/2002, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "NICO STEEL SOLUTIONS (S) PTE. LTD.".}

^{AS AT 05/12/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 900,000 SHARES OF A VALUE OF S$900,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) MANUFACTURE/REPAIR OF MACHINERY AND MACHINE-TOOLS-METAL CUTTING TYPES (EG LATHES)}

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

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE RELATING TO THE PROVISION OF METAL SLITTING SERVICES AND IMPORT AND EXPORT TRADING.}

^{FROM THE RESEARCH DONE, SUBJECT IS A PROCESSOR AND DISTRIBUTOR OF COMPREHENSIVE RANGE OF SPECIALTY & COMMERCIAL FERROUS AND NON-FERROUS MATERIAL (EG. COPPER, BRASS, BRONZE, STAINLESS STEEL, ALUMINIUM ETC). SUBJECT HAS ESTABLISHED A NEW COIL CENTRE IN SUZHOU, CHINA.}

^PRODUCTS:

^{*NICO SOLDERITE}

^{*STAINLESS STEEL}

^{*COPPER ALLOY}

^{*ALUMINUM ALLOY}

^{*CARBON STEEL ALLOY}

^{*BRASS STRIP}

^{*COPPER STRIP}

^{*PHOSPHER BRONZE STRIP}

^{MARKET PRESENCE:}

^*ASIA

^{INDUSTRIES SERVED:}

^{*CONSUMER ELECTRONICS}

^{*TELECOMMUNICATIONS}

^{*HARD DISK DRIVE}

^{QUALITY ASSESSMENT:}

^{*ENTERPRISE 50}

^{*ISO 9002}

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

^{*SINGAPORE MANUFACTURERS' FEDERATION}

^{*SINGAPORE PRECISION ENGINEERING AND TOOLING ASSOCIATION}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 10/12/2007}

^{THE IMMEDIATE AND ULTIMATE HOLDING COMPANY IS NICO STEEL HOLDINGS LIMITED AND D.S.A.G INVESTMENT PTE LTD RESPECTIVELY. BOTH COMPANIES ARE INCORPORATED IN SINGAPORE.}

^{NUMBER OF EMPLOYEES (28 FEBRUARY):}

^{- COMPANY - 2007: NOT AVAILABLE (2006: 30)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{48 CHANGI SOUTH STREET 1}

^{CHANGI SOUTH INDUSTRIAL ESTATE}

^{SINGAPORE 486130}

^{DATE OF CHANGE OF ADDRESS: 22/12/1998}

^{- OWNED PREMISE}

^WEBSITE:

^{www.nicosteel.com}

^EMAIL:

^{sales@nico.com.sg}

^{dannytan@nico.com.sg (MANAGING DIRECTOR : MR. DANNY TAN)}

MANAGEMENT

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

^{1) TAN CHEE KHIONG, A SINGAPOREAN}

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

^{D.S.A.G. TRADING PTE LTD}

^{2) TANG CHEE BIAN, A SINGAPOREAN}

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

^{D.S.A.G. TRADING PTE LTD}

^{3) TANG HEE KYA, A SINGAPOREAN}

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

^{D.S.A.G. TRADING PTE LTD}

^{4) TANG CHEE WEE, A SINGAPOREAN}

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

^{D.S.A.G. TRADING 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.	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%)

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