MIRA INFORM REPORT

Report Date :

18.12.2007

IDENTIFICATION DETAILS

Name :	VAN LEEUWEN PIPE AND TUBE (SINGAPORE) PTE LTD
Registered Office :	^4 Pioneer Place, #01-00, Singapore - 627893
Country :	^Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^23/02/1979
Com. Reg. No.:	^197900507N
Legal Form :	^Pte Ltd
Line of Business :	Sales of Pipes, Tubes, Fittings and Flanges

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 :	Exists

Subject Company

VAN LEEUWEN PIPE AND TUBE (SINGAPORE) PTE LTD

Line Of Business 

SALES OF PIPES, TUBES, FITTINGS AND FLANGES

Parent Company

VAN LEEUWEN PIPE AND TUBE ASIA

(PERCENTAGE OF SHAREHOLDINGS: 100%)

Financial Elements

FY 2006

COMPANY

Sales : US$ 72,180,855

Networth : US$ 17,437,241

Paid-Up Capital : US$ 7,365,727

Net result : US$ 8,710,778

Net Margin(%) : 12.07

Return on Equity(%) : 49.96

Leverage Ratio : 0.88

Rating

Credit Requested : USD 400,000; TERMS: O/A 60 DAYS

Credit Rating : LOW RISK

Credit Opinion : USD 400,000; TERMS: O/A 60 DAYS

COMPANY IDENTIFICATION

^{Subject Company : VAN LEEUWEN PIPE AND TUBE (SINGAPORE) PTE LTD}

^{Former Name : VAN LEEUWEN PIPE & TUBE (FAR EAST)}

^{Business Address: 4 PIONEER PLACE}

^#01-00

^{Town: SINGAPORE}

^{Postcode: 627893}

^{Country: Singapore}

^{Telephone: 6897 9301}

^{Fax: 6897 9318}

^{ROC Number: 197900507N}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{VAN LEEUWEN PIPE & TUBE (FAR EAST) PTE LTD DATE}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 23/02/1979}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 72,180,855}

^{Networth : 17,437,241}

^{Capital : 9,389,671}

^{Paid-Up Capital : 7,365,727}

^{Employees : 60}

^{Net result : 8,710,778}

^{Share value : -}

^{Auditor : ERNST & YOUNG}

^{BASED ON ACRA'S}

^{NO. OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 13,575,000 SGD 13,575,000}

^{PAID-UP ORDINARY - SGD 13,575,000}

REFERENCES

^{Credit Requested : USD 400,000; TERMS: O/A 60 DAYS}

^{Credit Opinion : USD 400,000; TERMS: O/A 60 DAYS}

^{Credit Rating : LOW RISK}

^{Litigation : Yes}

^{Company status : TRADING}

^{Started : 23/02/1979}

PRINCIPAL(S)

^{JOHAN FREDERIK WEERSTRA G5586719X Managing Director}

DIRECTOR(S)

^{LEE HENG CHOONG DESMOND S2588967C Company Secretary}

^{Appointed on : 01/11/2004}

^{Street : 5 ST GEORGE'S LANE}

^#12-189

^{Town: SINGAPORE}

^{Postcode: 320005}

^{Country: Singapore}

^{RAJAMANICKAM K VEMALA S0347048B Company Secretary}

^{Appointed on : 01/06/1985}

^{Street : 141 CEYLON ROAD}

^{Town: SINGAPORE}

^{Postcode: 429704}

^{Country: Singapore}

^{JOHAN FREDERIK WEERSTRA G5586719X Managing Director}

^{Appointed on : 01/08/2005}

^{Street : 51 FABER PARK}

^{FABER HILLS}

^{Town: SINGAPORE}

^{Postcode: 129126}

^{Country: Singapore}

^{JOHAN FREDERIK WEERSTRA G5586719X Director}

^{Appointed on : 01/08/2005}

^{Street : 51 FABER PARK}

^{FABER HILLS}

^{Town: SINGAPORE}

^{Postcode: 129126}

^{Country: Singapore}

^{JOHANNES MARIA SASSEN BA0294183 Director}

^{Appointed on : 01/09/2007}

^{Street : DE DAGMAAT 45, 8252 Y.A.}

^{Town: DRONTEN}

^{Postcode: -}

^{Country: Netherlands}

FORMER DIRECTOR(S)

^{CHEN FOO SIONG CLEMENT S0014582C}

^{GERARD ANTHONY CORDEIRO S0194059G}

^{DUVEKOT SAMUEL Z070910}

^{RIETBERG CLARINUS CHRISTIAAN T Z073897}

^{DE-KLERK PIETER Z087344}

^{ROLAND CORNELIS BALKENENDE Z148428}

^{BARTEL VAN DAM N26626860}

^{RIETBERG ADRIAAN REIJER Z170622}

^{RUITENBERG FLIP 851109W}

^{AART JEROEN SCHIPPER F2081871U}

^{MARTINUS BERNARDUS KERSTENS F2293611P}

^{JACOBUS CHRISTIAAN BREEN BA0263921}

^{PETER L. RIETBERG BA0275997}

ACTIVITY(IES)

^{PIPE FITTINGS Code: 16790}

^{BASED ON ACRA'S RECORD AS AT 15/10/2007}

^{1. MANUFACTURE OF PIPE FITTINGS; STOCKIST AND TRADING OF PIPES TUBES FITTINGS & FLANGES AND VALVES}

CHARGES

^{Date : 12/08/1998}

^{Comments : CHARGE NO : 199804194 (DISCHARGED - 23/06/2006)}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

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

^{Date : 30/04/2002}

^{Comments : CHARGE NO : 200201989 (DISCHARGED - 23/06/2006)}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : THE DEVELOPMENT BANK OF SINGAPORE LTD}

PREMISES/PROPERTY INFORMATIONS

^{Date : 26/04/2006}

^{Tax rate : 10}

^{Site Address : 4 PIONEER PLACE}

^{Town : SINGAPORE}

^{Postcode : 627893}

^{Country : Singapore}

^{Annual Value : 1,000,000}

* 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

^{DBS BANK LTD.}

SHAREHOLDERS(S)

^{VAN LEEUWEN PIPE AND TUBE ASIA 13,575,000 Company}

^{Street : LINDTSEDIJK 20 ZWIJNDRECHT}

^{Town: THE NETHERLANDS}

^{Postcode: -}

^{Country: Netherlands}

FORMER SHAREHOLDER(S)

^{HENRY MOSLEY DYNE 1}

^{DE-KLERK PIETER 1}

^{ROLAND CORNELIS BALKENENDE 1}

HOLDING COMPANY

^{VAN LEEUWEN PIPE AND TUBE ASIA UF04897M % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

Liquidity : SUFFICIENT

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

LITIGATION(S)

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

^{Case Number: MCS02328/2002}

Defendant VAN LEEUWEN PIPE AND TUBE ROC # : 197900507N

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

^{Case Number: MCS24235/2001}

Defendant VAN LEEUWEN PIPE AND TUBE ROC # : 197900507N

FINANCIAL ELEMENTS

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

^{Date Account Lodged: 31/08/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 4,011,562 4,190,906}

^{Total Fixed Assets: 4,011,562 4,190,906}

^{Inventories: 14,994,334 11,308,119}

^{Receivables: 7,602,257 9,024,083}

^{Cash,Banks, Securitis: 6,046,776 8,304,238}

^{Other current assets: 54,087 182,509}

^{Total Current Assets: 28,697,454 28,818,949}

^{TOTAL ASSETS: 32,709,016 33,009,855}

^{--- LIABILITIES ---}

^{Equity capital: 7,365,727 7,365,727}

^{Profit & lost Account: 10,071,514 8,157,152}

^{Total Equity: 17,437,241 15,522,879}

^{Trade Creditors: 8,996,476 12,260,557}

^{Due to Bank:}

^{Provisions: 2,343,054 1,918,174}

^{Other Short term Liab.: 3,932,245 3,308,245}

^{Total short term Liab.: 15,271,775 17,486,976}

^{TOTAL LIABILITIES: 15,271,775 17,486,976}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 72,180,855 51,819,492}

^{NET RESULT BEFORE TAX: 10,699,552 8,885,742}

^{Tax : 1,988,774 1,909,097}

^{Net income/loss year: 8,710,778 6,976,645}

^{Interest Paid: 8,639 5,170}

^{Depreciation: 428,500 425,046}

^{Dividends: 6,796,416 2,135,580}

^{Directors Emoluments: 235,747 245,200}

^{Wages and Salaries: 2,480,410 2,358,689}

RATIOS

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

^{Turnover per employee: 1203014.25 863658.20}

^{Net result / Turnover(%): 0.12 0.13}

^{Stock / Turnover(%): 0.21 0.22}

^{Net Margin(%): 12.07 13.46}

^{Return on Equity(%): 49.96 44.94}

^{Return on Assets(%): 26.63 21.14}

^{Dividends Coverage: 1.28 3.27}

^{Net Working capital: 13425679.00 11331973.00}

^{Cash Ratio: 0.40 0.47}

^{Quick Ratio: 0.89 0.99}

^{Current ratio: 1.88 1.65}

^{Receivables Turnover: 37.92 62.69}

^{Leverage Ratio: 0.88 1.13}

^{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 IMPROVED BY 12.33% FROM USD15,522,879 IN 2005 TO USD17,437,241 IN 2006.}

^{THIS WAS DUE TO HIGHER REVENUE RESERVES OF USD10,071,514 (2005: USD8,157,152); A RISE OF 23.47% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 58.91% (2005: 70.11%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO USD8,996,476 (2005: USD12,260,557). SUBJECT DID NOT INCUR ANY LONG TERM LIABILITIES DURING THE FINANCIAL YEAR UNDER REVIEW.}

^{IN ALL, LEVERAGE RATIO FELL FROM 1.13 TIMES TO 0.88 TIMES AS A RESULT OF A RISE IN TOTAL EQUITY AND A FALL IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 18.48% TO USD13,425,679 (2005: USD11,331,973).}

^{CURRENT RATIO ROSE TO 1.88 TIMES, UP FROM 1.65 TIMES BUT QUICK RATIO DECREASED TO 0.89 TIMES FROM 0.99 TIMES IN 2005.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 39.29% FROM USD51,819,492 IN 2005 TO USD72,180,855 AND NET PROFIT ROSE BY 24.86% TO USD8,710,778 (2005: USD6,976,645).}

^{HOWEVER, NET MARGIN FELL TO 12.07% (2005: 13.46%).}

^{THIS COULD BE DUE TO THE INCREASE IN TAXATION EXPENSES BY 4.17% TO USD1,988,774 (2005: USD1,909,097).}

^{DEBT SERVICING:}

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

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{EVENTS AFTER BALANCE SHEET DATE}

^{SUBSEQUENT TO BALANCE SHEET DATE, ON 19 APRIL 2007, THE COMPANY DECLARED THE FOLLOWING DIVIDENDS:}

^{TAX EXEMPT (ONE TIER) DIVIDEND OF S$12,600,000 (US$8,400,000): S$0.93 (US$0.62) PER SHARE.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 23/02/1979 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "VAN LEEUWEN PIPE AND TUBE (FAR EAST) PTE. LTD." .}

^{SUBSEQUENTLY ON 26/06/1998, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "VAN LEEUWEN PIPE AND TUBE (SINGAPORE) PTE LTD".}

^{AS AT 15/10/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 13,575,000 SHARES OF A VALUE OF S$13,575,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{(1) MANUFACTURE OF PIPE FITTINGS; STOCKIST AND TRADING OF PIPES TUBES FITTINGS & FLANGES AND VALVES}

^{THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: PIPES.}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF SALES OF PIPES, TUBES, FITTINGS AND FLANGES.}

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

^{BACKGROUND OF THE VAN LEEUWEN PIPE AND TUBE GROUP:}

^{THE VAN LEEUWEN PIPE AND TUBE GROUP IS AN INTERNATIONAL INDUSTRIAL DISTRIBUTOR OF STEEL PIPE, VALVES AND FITTINGS. THE GROUP IS ACTIVE IN PRACTICALLY ALL SECTORS OF INDUSTRY.}

^{THE COMPANY WAS FOUNDED IN 1924 IN ZWIJNDRECHT, THE NETHERLANDS, AND TODAY HAS AN EXTENSIVE NETWORK OF LOCATIONS SPREAD THROUGHOUT EUROPE, ASIA, THE MIDDLE EAST, AUSTRALIA AND CANADA. IN TOTAL THE GROUP HAS 31 LOCATIONS, THE MAJORITY OF WHICH MAINTAIN INVENTORIES RANGING FROM CARBON AND ALLOY STEEL TO STAINLESS STEEL PRODUCTS.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* STOCKIST AND TRADER OF STAINLESS STEEL, SEAMLESS WELDED CARBON AND STAINLESS STEEL, LOW ALLOY PIPES, FITTINGS, FLANGES AND VALVES}

^{PRODUCTS DEALINGS:}

^{* PIPES AND TUBES}

^{* HOLLOW SECTIONS}

^{* PIPE COMPONENTS}

^{* VALVES}

^{* STAINLESS}

^{* PRECISIE}

^SERVICES:

^{* INVENTORY MANAGEMENT AND LOGISTICS}

^{* MACHINING OPERATIONS}

^{* CUSTOMIZED SERVICES}

^{INDUSTRIES SERVED:}

^{* PETROCHEMICAL}

^{* CHEMICAL}

^{* ENERGY}

^{* OFFSHORE}

^{* SHIPBUILDING}

^{* MECHANICAL LIGHT ENGINEERING}

^{* CONSTRUCTION}

^{* INFRASTRUCTURE}

^{* AGRICULTURAL}

^{* TRANSPORTATION}

^{* FOOD PRODUCTION}

^{* FURNITURE}

^{* PIPELINE INSTALLATION}

^{* TRADING}

^{TERMS OF PAYMENT:}

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

^{QUALITY ASSESSMENT:}

^{* ISO 9001:2000}

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

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 18/12/2007, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{* 2007: 60+}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 18/12/2007.}

^{THE COMPANY IS A WHOLLY OWNED SUBSIDIARY OF VAN LEEUWEN PIPE AND TUBE ASIA PACIFIC B.V. (FORMERLY KNOWN AS VAN LEEUWEN PIPE AND TUBE SOUTH-EAST ASIA B.V.), INCORPORATED IN THE NETHERLANDS AND THE COMPANY'S ULTIMATE HOLDING COMPANY IS VAN LEEUWEN PIPE & TUBE GROUP B.V., INCORPORATED IN THE NETHERLANDS.}

^{REGISTERED ADDRESS:}

^{1 MARINA BOULEVARD}

^#28-00

^{ONE MARINA BOULEVARD}

^{SINGAPORE 018989}

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

^{BUSINESS ADDRESS:}

^{4 PIONEER PLACE}

^#01-00

^{SINGAPORE 627893}

^{- OWNED PREMISE}

^WEBSITE:

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

^EMAIL:

^{info@vanleeuwen.com.sg}

MANAGEMENT

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

^{1) JOHANNES MARIA SASSEN, A DUTCH}

^{- BASED IN THE NETHERLANDS.}

^{2) JOHAN FREDERIK WEERSTRA, A DUTCH}

^{- BASED IN SINGAPORE.}

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