MIRA INFORM REPORT

Report Date :

11.01.2007

IDENTIFICATION DETAILS

Name :	FARLIN TIMBERS PTE LTD
Formerly Known As :	^VIRGIN WOOD PRODUCTS PTE LTD
Registered Office :	^435 Orchard Road, #21-01, Wisma Atria, 238877
Country :	^Singapore
Financials (as on) :	30/06/2004
Date of Incorporation :	^03/08/1994
Com. Reg. No.:	^199405441Z
Legal Form :	^Exempt Pte Ltd
Line of Business :	Engaged in trading of timber.

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 :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear

Subject Company

FARLIN TIMBERS PTE LTD

Line Of Business 

TRADING OF TIMBER

Parent Company

-

Financial Elements

FY2004

COMPANY

Sales : S$277,294,746

Networth : S$ 14,116,955

Paid-Up Capital : S$ 10,000,000

Net result : S$ 1,732,898

Net Margin(%) : 0.62

Return on Equity(%) : 12.28

Leverage Ratio : 2.98 TIMES

Note: Based on Accounting and Corporate Regulatory Authority’s (ACRA) record dated 01/11/2006, the paid-up capital has increased to S$47,920,826.

Rating

Credit Rating : Singapore $ 10000001 to Singapore $ 50000000

COMPANY IDENTIFICATION

^{Subject Company : FARLIN TIMBERS PTE LTD}

^{Former Name : VIRGIN WOOD PRODUCTS PTE LTD}

^{Business Address : 435 ORCHARD ROAD}

^#21-01

^{WISMA ATRIA}

^{Town : SINGAPORE}

^{Postcode : 238877}

^{County : -}

^{Country : Singapore}

^{Telephone : 6398 1188}

^{Fax : 6398 1177}

^{ROC Number : 199405441Z}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{VIRGIN WOOD PRODUCTS PTE LTD (DATE OF CHANGE OF NAME: 02/10/1997)}

^{FARLIN TIMBERS PTE LTD (DATE OF CHANGE OF NAME: 01/12/1995)}

SUMMARY

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

^{Legal Form : Exempt Pte Ltd}

^{Date Inc. : 03/08/1994}

^{Previous Legal Form : Pte Ltd}

^{Summary year : 30/06/2004}

^{Sales : 277,294,746}

^{Net Worth : 14,116,955}

^{Capital : 50,000,000}

^{Paid-Up Capital : 10,000,000}

^{Employees : 12}

^{Net result : 1,732,898}

^{Share value : 1}

^{Auditor : J K MEDORA & CO}

REFERENCES

^{CCMS Number : 702000145708}

^{Report Date : 07/11/2006}

^{Update Date : 07/11/2006}

^{Credit Requested : NA}

^{Credit Opinion : NA}

^{Litigation : No}

^{Company status : TRADING}

^{Started : 03/08/1994}

PRINCIPAL(S)

^{MOHAMMED FAROUK S2715761J Director}

DIRECTOR(S)

^{PEH POH CHIN S6840069D Director}

^{Appointed on : 01/06/2000}

^{Street : 198 BOON LAY DRIVE}

^#03-51

^{Town : SINGAPORE}

^{Postcode : 640198}

^{Country : Singapore}

^{PEH POH CHIN S6840069D Company Secretary}

^{Appointed on : 31/08/2003}

^{Street : 198 BOON LAY DRIVE}

^#03-51

^{Town : SINGAPORE}

^{Postcode : 640198}

^{Country : Singapore}

^{SEET BENG CHOO JEANNE S1234059A Company Secretary}

^{Appointed on : 31/08/2003}

^{Street : 529 HOUGANG AVENUE 6}

^#07-263

^{Town : SINGAPORE}

^{Postcode : 530529}

^{Country : Singapore}

^{MOHAMMED FAROUK S2715761J Director}

^{Appointed on : 03/08/1994}

^{Street : 95 GRANGE ROAD}

^#12-02

^{GRANGE RESIDENCES}

^{Town : SINGAPORE}

^{Postcode : 249616}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{WONG LAI LENG S1176982I}

^{KOH NGIN JOO S2586980Z}

ACTIVITY(IES)

^{TRADING COMPANIES Code: 22190}

^{TIMBER - WHSLE Code: 21690}

^{COMMISSION MERCHANTS Code: 4990}

^{BASED ON ACRA'S RECORD AS AT 01/11/2006}

^{1) ENGINEERING ACTIVITIES; WHOLESALE TRADE}

^{2) WHOLESALE OF AGRICULTURAL RAW MATERIAL, LIVE ANIMALS, FOOD,}

CHARGES

^{Date : 28/10/2004}

^{Comments : CHARGE NO: C200405343}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): BNP PARIBAS}

^{Date : 29/06/2004}

^{Comments : CHARGENO: C200403104}

^{CHARGEE: KBC BANK N.V}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date : 06/04/2004}

^{Comments : CHARGE NO: C200401744}

^{CHARGEE: SCOIETE GENERALE}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date : 06/04/2004}

^{Comments : CHARGE NO: C200401743}

^{CHARGEE: SOCIETE GENERALE}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date : 17/03/2004}

^{Comments : CHARGE NO: C200401264}

^{CHARGEE: INDIAN BANK}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date : 21/10/2003}

^{Comments : CHARGE NO: C200304968 (DISCHARGED)}

^{CHARGEE: MOSCOW NARODNY BANK LTD}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date : 12/08/2003}

^{Comments : CHARGE NO: C200303838 (DISCHARGED)}

^{CHARGEE: DBS BANK LTD}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date : 25/06/1999}

^{Comments : CHARGE NO: 199902396 (DISCHARGED)}

^{CHARGEE: MEEPIERSON N.V.}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date : 19/02/2002}

^{Comments : CHARGE NO: 200200829}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE (S): ABN AMRO BANK N.V.}

^{Date : 16/02/2001}

^{Comments : CHARGE NO: 200100775 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE (S): FLEET NATIONAL PARK}

^{Date : 06/03/2003}

^{Comments : CHARGE NO: C200301008}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: KBC BANK N.V.}

^{Date : 04/06/2003}

^{Comments : CHARGE NO: C200302591 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: RAIFFEISEN ZENTRALBANK OESTERREICH}

^{AKTIENGESELLSCHAFT}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{ABN AMRO BANK NV}

^{KBC BANK N V}

^{RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT}

^{UCO BANK}

^{DBS BANK LTD.}

SHAREHOLDERS(S)

^{MOHAMMED FAROUK 47,920,826 Private Person}

^{Street : 95 GRANGE ROAD}

^#12-02

^{GRANGE RESIDENCES}

^{Town : SINGAPORE}

^{Postcode : 249616}

^{Country : Singapore}

FORMER SHAREHOLDER(S)

^{KOH NGIN JOO 1}

^{MOHAMMED FARROKH 99,999}

^{SOUTAHVEN INTERNATIONAL LIMITED 3,400,000}

^{LISI VELAVELA FARROKH 1}

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)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Audit Qualification: UNQUALIFIED UNQUALIFIED UNQUALIFIED}

^{(CLEAN) (CLEAN) (CLEAN)}

^{Date Account Lodged: 30/08/2004}

^{Balance Sheet Date: 30/06/2004 30/06/2003 30/06/2002}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp - - 12,400}

^{Tangible Fixed Assets: 220,291 16,017 104,208}

^{Total Fixed Assets: 220,291 16,017 116,608}

^{Inventories: 27,835,393 7,674,292 14,922,076}

^{Receivables: 4,917,998 6,385,539 9,806,343}

^{Cash,Banks, Securities: 11,557,155 8,321,164 4,249,444}

^{Other current assets: 11,609,036 8,435,439 1,963,695}

^{Total Current Assets: 55,919,582 30,816,434 30,941,558}

^{TOTAL ASSETS: 56,139,873 30,832,451 31,058,166}

^{--- LIABILITIES ---}

^{Equity capital: 10,000,000 10,000,000 8,500,000}

^{Profit & loss Account: 4,116,955 2,384,057 1,526,049}

^{Total Equity: 14,116,955 12,384,057 10,026,049}

^{L/T deferred taxes: 800 2,400 -}

^{Total L/T Liabilities: 800 2,400 -}

^{Trade Creditors: 17,136,035 1,816,897 532,056}

^{Due to Bank: 22,714,399 16,046,870 20,166,320}

^{Provisions: 455,895 218,231 113,000}

^{Other Short term Liab.: 1,620,669 342,156 76,717}

^{Prepay. & Def. charges: 95,120 21,840 144,024}

^{Total short term Liab.: 42,022,118 18,445,994 21,032,117}

^{TOTAL LIABILITIES: 42,022,918 18,448,394 21,032,117}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 277,294,746 157,908,847 112,626,460}

^{Gross Profit: 4,888,171 3,378,968 2,469,011}

^{Result of ordinary operations 1,962,533 1,035,590 430,848}

^{NET RESULT BEFORE TAX: 2,181,298 1,085,808 664,691}

^{Tax : 448,400 227,800 55,802}

^{Net income/loss year: 1,732,898 858,008 608,889}

^{Interest Paid: 1,670,578 1,897,031 1,673,341}

^{Depreciation: 126,162 88,191 174,419}

^{Directors Emoluments: 379,350 168,000 168,000}

^{Wages and Salaries: 667,909 616,693 486,874}

^{Financial Income: 81,565 30,674 -}

RATIOS

^{30/06/2004 30/06/2003 30/06/2002}

^{Turnover per employee: 23107895.50 13159070.58 9385538.33}

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

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

^{Stock / Turnover(%): 0.10 0.05 0.13}

^{Net Margin(%): 0.62 0.54 0.54}

^{Return on Equity(%): 12.28 6.93 6.07}

^{Return on Assets(%): 3.09 2.78 1.96}

^{Net Working capital: 13897464.00 12370440.00 9909441.00}

^{Cash Ratio: 0.28 0.45 0.20}

^{Quick Ratio: 0.39 0.80 0.67}

^{Current ratio: 1.33 1.67 1.47}

^{Receivables Turnover: 6.38 14.56 31.35}

^{Leverage Ratio: 2.98 1.49 2.10}

^{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

^{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.}

^{* THE LATEST FINANCIAL STATEMENTS FILED IN BY THE COMPANY AS AT YEAR ENDED 30/06/2005 ARE NOT AVAILABLE. FY2004 FINANCIALS SERVE AS A REFERENCE ONLY.}

^{AS SUCH, ADVERSE CHECKS ON THE LOCAL DIRECTORS WILL BE CONDUCTED.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 03/08/1994 AS A LIMITED PRIVATE COMPANY AND WAS FORMERLY KNOWN AS "FARLIN TIMBERS PTE LTD".}

^{ON 01/12/1995, SUBJECT CHANGED ITS NAMESTYLE TO "VIRGIN WOOD PRODUCTS}

^{PTE LTD".}

^{SUBSEQUENTLY ON 02/10/1997, SUBJECT AGAIN CHANGED TO ITS PRESENT NAMESTYLE OF "FARLIN TIMBERS PTE LTD" AND IS TRADING AS A LIMITED EXEMPT PRIVATE COMPANY.}

^{AS AT 01/11/2006, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 47,920,826 SHARES OF A VALUE OF S$47,920,826.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) ENGINEERING ACTIVITIES; WHOLESALE TRADE}

^{2) WHOLESALE OF AGRICULTURAL RAW MATERIAL, LIVE ANIMALS, FOOD,}

^{BEVERAGES AND TOBACCO; TIMBER WHOLESALING}

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

^{SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: TIMBER EXPORTERS & IMPORTERS.}

^{IMPORT COUNTRIES:}

^{* WEST AFRICA}

^{- GABON}

^{- GHANA}

^{- IVORY COAST}

^{- NIGERIA}

^{- CAMEROON}

^{* SOUTH AMERICA}

^{- VENEZUELA}

^{- ECUADOR}

^{- PANAMA}

^{- GUYANA}

^{* SOUTH EAST ASIA}

^{- MALAYSIA}

^{- MYANMAR}

^{- NEW ZEALAND}

^{- PAPUA NEW GUINEA}

^{EXPORT COUNTRIES:}

^{* INDIA}

^{* CHINA}

^{SOME OF SUBJECT'S CLIENTS:}

^{* PRABHAT GROUP, ETC}

^{TERMS OF PAYMENT:}

^{* CUSTOMERS: LETTERS OF CREDIT, DOCUMENTS AGAINST PAYMENT}

^{NUMBER OF EMPLOYEES (30 JUNE):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: 12; 2003: 12; 2002: 12)}

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

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 07/11/2006, SUBJECT REVEALED THAT THERE ARE 15 EMPLOYEES IN THE COMPANY.}

^{NO OTHER INFORMATION WAS GATHERED VIA THE TELE-INTERVIEW CONDUCTED.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{435 ORCHARD ROAD}

^#21-01

^{WISMA ATRIA}

^{SINGAPORE 238877}

^{DATE OF CHANGE OF ADDRESS: 25/10/2004}

^{-- RENTED PREMISE}

^{-- OWNED BY: HSBC INSTITUTIONAL TRUST SERVICES (SINGAPORE) LIMITED}

^WEBSITE:

^{* http://www.farlingroup.com}

^EMAIL:

^{* farlintimbers@farlingroup.com}

MANAGEMENT

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

^{1) MOHAMMED FAROUK, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE}

^{VIRGIN TIMBERS PTE LTD}

^{2) PEH POH CHIN, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE}

^{GANGES TECHNOLOGIES PTE LTD}

^{VIRGIN TIMBERS PTE LTD}

^{ANASIDAH PTE LTD}

^{BLOOMWOOD PTE LTD}

^{KARLVELLA PTE LTD}

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME: MOHAMMED FAROUK}

^{ADVERSE REPORT AGAINST DIRECTOR: NIL}

^{PROPERTY OWNERSHIP: NA}

^{ANNUAL VALUE: NA}

^{CO-OWNER: NA}

^{DIRECTOR'S NAME: PEH POH CHIN}

^{ADVERSE REPORT AGAINST DIRECTOR: NIL}

^{PROPERTY OWNERSHIP: NIL}

^{ANNUAL VALUE: NA}

^{CO-OWNER: NA}

^{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.}

INVESTMENT GRADE

IN SINGAPORE, THE POLITICAL SITUATION APPEARS TO BE VERY STABLE.

ECONOMIC GROWTH IS BECOMING MORE MODERATE AS INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND FOR ELECTRONIC PRODUCTS.

ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE'S STRONG FINANCIAL CONDITION.

AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITS POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR'S SHARE HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND BIOTECHNOLOGIES.

ASSETS

- ONE OF THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR

ROLE IN ITS PERFORMANCE.

- ONE OF ASIA'S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS TERMS.

- WORKFORCE'S EDUCATION AND SKILL LEVEL IS VERY HIGH.

- A MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING

COMPANY, TEMASEK.

- THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.

- GREAT POLITICAL STABILITY.

WEAKNESSES

- ECONOMY REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.

- MUST ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER

OTHER ASIAN ECONOMIES

- REFORMS ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM

MODERNIZATION.

- AGING POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.

WHOLESALE TRADE SECTOR

PAST PERFORMANCE

WITH THE GROWTH IN NON-OIL RE-EXPORTS AND THE RISE IN RETAIL SALES, THE

WHOLESALE AND RETAIL TRADE SECTOR GREW BY A ROBUST 15% IN 1Q2006, UP FROM THE

12% GAIN IN 4Q2005.

DOMESTIC WHOLESALE TRADE INDEX

FOLLOWING SEVEN QUARTERS OF DOUBLE-DIGIT GROWTH, THE OVERALL DOMESTIC WHOLESALE TRADE INDEX MODERATED TO 7.5% IN 1Q2006. EXCLUDING PETROLEUM, THE INDEX ROSE BY 14.2% OVER THE SAME PERIOD LAST YEAR.

DOMESTIC SALES OF GENERAL WHOLESALE TRADE ROSE SUBSTANTIALLY BY 61.6%.

DOMESTIC SALES OF FOOD, BEVERAGES & TOBACCO, PAINTS & CONSTRUCTION MATERIALS,

TIMBER ALSO FELL COMPARED TO 1Q2005.

ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A DECLINE OF 16.5%

COMPARED TO 4Q2005. EXCLUDING PETROLEUM, THE INDEX WERE LOWER BY 8.9%.

MOST OF THE MAJOR SECTORS REGISTERED SLOWER BUSINESS IN 1Q2006 WITH THE

EXCEPTION OF TELECOMMUNICATIONS & COMPUTERS AND GENERAL WHOLESALE TRADE.

FOREIGN WHOLESALE TRADE INDEX

AS COMPARED TO 1Q2005, THE OVERALL FOREIGN WHOLESALE TRADE IN 1Q2006 ROSE BY

15.4%. EXCLUDING PETROLUEM, THE INDEX EXPANDED BY 11.5%.

ON A YEAR-ON-YEAR BASIS, ELECTRONIC COMPONENTS GREW BY 22.8%, PETROLEUM &

PETROLEUM PRODUCTS ROSE BY 20.3%, AND GENERAL WHOLESALE TRADE GREW BY 18.7% IN 1Q2006.

IN CONTRAST, HOUSEHOLD EQUIPMENT & FURNITURE, FOOD, BEVERAGES & TOBACCO, PAINTS & CONSTRUCTION MATERIALS, WHOLESALERS OF TIMBER REPORTED SLOWER FOREIGN BUSINESS OVER THE SAME PERIOD LAST YEAR.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE MARGINALLY BY 0.9% IN 1Q2006 OVER A

YEAR AGO. EXCLUDING PETROLEUM, IT WAS UP BY 7.6%.

ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A DECLINE OF 9.4%

FOLLOWING GROWTH FOR THREE CONSECUTIVE QUARTERS. EXCLUDING PETROLEUM, THE INDEX WERE LOWER BY 8.6%.

AHEAD

WHOLESALERS PREDICTS POSITIVE BUSINESS CONDITIONS FOR THE PERIOD ENDING DECEMBER 2006. THOSE DEALING IN FURNITURE & FURNISHINGS, COSMETICS & TOILETRIES,

JEWELLERY & WATCHES, HOUSEHOLD ELECTRICAL APPLIANCES & EQUIPMENT, ELECTRONIC

COMPONENTS, SCIENITIFIC & PRECISION EQUIPMENT, ARE AMONG THOSE WHO ARE

OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

EXTRACTED FROM : MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

TODAY

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/normal.	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

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