MIRA INFORM REPORT

Report Date :

29^th January, 2007

IDENTIFICATION DETAILS

Name :	BARTEC PTE LTD
Registered Office :	63 Hillview Avenue, #07-20/21, Lam Soon Industrial Building, Singapore 669569, Singapore
Country :	Singapore
Financials (as on) :	30.04.2006
Date of Incorporation :	05.05.1995
Legal Form :	^Pte Limited
Line of Business :	Import, Export and Sale of Electrical and Lighting Products and Components.

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Small Company
Payment Behaviour :	--
Litigation :	Clear

Company Name

BARTEC PTE LTD

Line Of Business 

IMPORT, EXPORT AND SALE OF ELECTRICAL AND LIGHTING PRODUCTS AND

COMPONENTS

Parent Company

BARTEC GMBH

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : S$7,971,529

Networth : S$-3,527,167

Paid-Up Capital : S$200,000

Net result : S$-2,527,464

Net Margin(%) : -31.71

Return on Equity(%) : 71.66 (NOTE: POSITIVE ROE DUE TO OFF SET OF NEGATIVE EARNINGS

AND NEGATIVE TOTAL EQUITY)

Leverage Ratio : -3.23

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

Subject Company : BARTEC PTE LTD

Former Name : -

Business Address : 63 HILLVIEW AVENUE, #07-20/21, LAM SOON INDUSTRIAL BUILDING

Town : SINGAPORE

Postcode : 669569

County : -

Country : Singapore

Telephone : 6762 5030

Fax : 6762 5031

ROC Number : 199503132E

Reg. Town : -

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 05/05/1995}

^{Previous Legal Form : -}

^{Summary year : 30/04/2006}

^{Sales : 7,971,529}

^{Net Worth : -3,527,167}

^{Capital : -}

^{Paid-Up Capital : 200,000}

^{Employees : Not Available}

^{Net result : -2,527,464}

^{Share value : -}

^{Auditor : BH CHIA & CO}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 05/05/1995}

PRINCIPAL(S)

^{LUCIANO CHECCO Y321107 Managing Director}

DIRECTOR(S)

LOTHAR FRANZ MEZGER Director

Appointed on : 05/05/1995

Street : ENGELSBERG 3 D-97980, BAD MERGENTHEIM-MARKELSHEIM

Town : GERMANY

Postcode : -

Country : Germany

LIM SIEW YONG S0160273Z Company Secretary

Appointed on : 09/06/1995

Street : 5000A MARINE PARADE ROAD, #04-02, LAGUNA PARK

Town : SINGAPORE

Postcode : 449284

Country : Singapore

RALF KOSTER Director

Appointed on : 04/10/2005

Street : ASTERNWEG 7, 32479 HILLE-

Town : ROTHENUFFELM

Postcode : -

Country : Germany

LUCIANO CHECCO Y321107 Director

Appointed on : 28/11/2005

Street : 3 RHU CROSS, #07-03, COSTA RHU

Town : SINGAPORE

Postcode : 437433

Country : Singapore

LUCIANO CHECCO Y321107 Managing Director

Appointed on : 28/11/2005

Street : 3 RHU CROSS, #07-03, COSTA RHU

Town : SINGAPORE

Postcode : 437433

Country : Singapore

FORMER DIRECTOR(S)

^{ALEXANDER A VON SENGBUSCH 3334088038}

^{REINHOLD A BARLIAN}

ACTIVITY(IES)

^{LIGHTING SYSTEMS And EQUIPMENT Code:13050}

^{ELECTRONIC EQUIPMENT And SUPPLIES - WHSLE And MFRS Code:7640}

^{BASED ON ACRA'S RECORD AS AT 23/01/2007}

^{1) MANUFACTURE OF ELECTRICAL/ELECTRONIC ENGINEERING AND SCIENTIFIC}

^INSTRUMENTS;

^{2) ELECTRICAL WORKS; INSTALLATION & CONTRACTING SERVICES FOR}

^{ELECTRICAL & INSTRUMENTATION EQUIPMENT}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{STANDARD CHARTERED BANK}

SHAREHOLDERS(S)

^{BARTEC GMBH 200,000 Company}

^{Street : MAX-EYTH-ST 16, D-97980}

^{Town : BAD MERGRNTHEIM}

^{Postcode : -}

^{Country : Germany}

HOLDING COMPANY

^{BARTEC GMBH %: 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : LACKING}

^{Payments : REGULAR}

^{Trend : DOWNWARD}

^{Financial Situation : BAD}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 11/10/2006}

^{Balance Sheet Date: 30/04/2006 30/04/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

ASSETS

^{Tangible Fixed Assets: 169,670 104,471}

^{Total Fixed Assets: 169,670 104,471}

^{Inventories: 1,807,318 1,981,649}

^{Receivables: 4,756,632 3,532,079}

^{Cash,Banks,Securities: 218,167 334,968}

^{Other current assets: 912,736 657,241}

^{Total Current Assets: 7,694,853 6,505,937}

^{TOTAL ASSETS: 7,864,523 6,610,408}

LIABILITIES

^{Equity capital: 200,000 200,000}

^{Profit & loss Account: -3,727,167 -1,199,703}

^{Total Equity: -3,527,167 -999,703}

^{Trade Creditors: 9,573,653 6,727,862}

^{Prepay. & Def. charges: 231,265 21,360}

^{Other Short term Liab.: 1,586,772 860,889}

^{Total short term Liab.: 11,391,690 7,610,111}

^{TOTAL LIABILITIES: 11,391,690 7,610,111}

PROFIT & LOSS ACCOUNT

^{Net Sales 7,971,529 7,110,696}

^{Result of ordinary operations -2,045,637 -387,911}

^{NET RESULT BEFORE TAX: -2,527,464 -746,523}

^{Net income/loss year: -2,527,464 -746,523}

^{Interest Paid: 481,827 358,612}

^{Depreciation: 46,362 29,040}

^{Directors Emoluments: 281,231 228,599}

^{Wages and Salaries: 1,937,612 1,194,539}

RATIOS

^{30/04/2006 30/04/2005}

^{Net result / Turnover(%): -0.32 -0.10}

^{Fin. Charges / Turnover(%): 0.06 0.05}

^{Stock / Turnover(%): 0.23 0.28}

^{Net Margin(%): -31.71 -10.50}

^{Return on Equity(%): 71.66 74.67}

^{Return on Assets(%): -32.14 -11.29}

^{Net Working capital: -3696837.00 -1104174.00}

^{Cash Ratio: 0.02 0.04}

^{Quick Ratio: 0.44 0.51}

^{Current ratio: 0.68 0.85}

^{Receivables Turnover: 214.81 178.82}

^{Leverage Ratio: -3.23 -7.61}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Net Working capital : (Total current assets-Total short term liabilities)}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE LIMITED IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED INADEQUATE WITH NET WORTH IN NEGATIVE REGION, AND WORSENING BY 2.53 TIMES TO S$3,527,167, AS COMPARED TO THE NEGATIVE NET WORTH OF S$999,703 IN 2005.}

^{THIS WAS DUE TO HIGHER ACCUMULATED LOSSES OF S$3,727,167 (2005: S$1,199,703); A RISE OF 2.11 TIMES FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 84.04% (2005: 88.41%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$9,573,653 (2005: S$6,727,862). THE BREAKDOWN IS AS FOLLOWS:}

^{-TRADE CREDITORS - 2006: S$1,067,870 (2005: S$615,078)}

^{-RELATED COMPANY - 2006: S$8,505,783 (2005: S$6,112,784)}

^{SUBJECT DID NOT INCUR ANY LONG TERM LIABILITIES DURING THE FINANCIAL YEAR UNDER REVIEW.}

^{IN ALL, LEVERAGE RATIO WAS IN NEGATIVE REGION BUT NARROWED TO 3.23 TIMES}

^{(2005: 7.61 TIMES). THIS WAS DUE TO THE WORSENING OF SUBJECT'S NEGATIVE TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS INADEQUATE AS SEEN FROM THE NEGATIVE NET WORKING CAPITAL, WHICH WORSENED BY 2.35 TIMES TO S$3,696,837}

^{(2005: S$1,104,174).}

^{CURRENT RATIO FELL TO 0.68 TIMES, DOWN FROM 0.85 TIMES AND QUICK RATIO DECREASED TO 0.44 TIMES FROM 0.51 TIMES IN 2005.}

^{THIS COULD INDICATE THAT SUBJECT MAY FACE DIFFICULTIES IN FULFILLING ITS FUTURE SHORT TERM OBLIGATIONS.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 12.11% FROM S$7,110,696 IN 2005 TO S$7,971,529, BUT NET LOSS WORSENED BY 2.39 TIMES TO S$2,527,464, AS COMPARED TO THE NET LOSS OF S$746,523 IN 2005.}

^{THIS COULD BE DUE TO THE INCREASE IN DEPRECIATION EXPENSES BY 59.65% TO S$46,362 (2005: S$29,040), THE INCREASE IN STAFF COSTS BY 62.21% TO S$1,937,612}

^{(2005: S$1,194,539), AND THE NEGATIVE CHANGES IN INVENTORIES OF FINISHED GOODS AMOUNTING TO S$65,670, AS COMPARED TO THE POSITIVE CHANGES IN INVENTORIES OF FINISHED GOODS AMOUNTING TO S$609,181 IN 2005.}

^{HENCE, NET MARGIN REMAINED IN NEGATIVE REGION AND WORSENED TO 31.71%}

^{(2005: -10.50%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT BE EXPECTED IF REVENUE AND EARNINGS CANNOT BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE NOT FORTHCOMING. IN ADDITION, ITS INTEREST COVERAGE WAS INADEQUATE AS SHOWN BY ITS NEGATIVE INTEREST COVERAGE RATIO OF 4.25 TIMES (2005: -1.08 TIMES).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 05/05/1995 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER THE PRESENT NAMESTYLE OF "BARTEC PTE LTD".}

^{AS AT 23/01/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 200,000 SHARES, OF A VALUE OF S$200,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) MANUFACTURE OF ELECTRICAL/ELECTRONIC ENGINEERING AND SCIENTIFIC INSTRUMENTS;}

^{MANUFACTURE AND DISTRIBUTE ANALYZERS, SWITCHBOARDS & PANEL ASSEMBLIES}

^{2) ELECTRICAL WORKS; INSTALLATION & CONTRACTING SERVICES FOR ELECTRICAL &}

^{INSTRUMENTATION EQUIPMENT}

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF IMPORT, EXPORT AND SALE OF ELECTRICAL AND LIGHTING PRODUCTS AND COMPONENTS.}

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

^ACTIVITIES

^{- DISTRIBUTION, ASSEMBLY AND MANUFACTURING OF SYSTEMS AND EQUIPMENTS}

^{FOR HAZARDOUS AND SEVERE AREAS}

^{- EQUIPMENT FOR PROCESS HEATING; OF LOW AND MEDIUM VOLTAGE SWITCHGEARS; OF}

^{DISPENSING SYSTEMS FOR AUTOMOTIVE, ELECTRICAL AND ELECTRONIC INDUSTRIES; SENSOR}

^{TECHNOLOGY; INTEGRATED INSTRUMENTS AND DATA COLLECTION}

^{TRADE NAMES / PRODUCTS}

^{- ULTRAKUST HYGROMETERS,DATA LOGGERS,ETC. (DE)}

^{- VICTOR LIGHTING,LOUD SPEAKERS,SIGNALING (GB)}

^{- COELBO EXPLOSION PROOF ELECTRICAL EQPT (IT)}

^{- BARTEC EXPLOSION PROOF ELECTRICAL EQPT (DE)}

^{- BARTEC-BENKE ANALYZER AND ANALZER SYSTEM (DE)}

^{AGENTS FOR}

^{- ULTRAKUST (DE)}

^{- VICTOR LIGHTING (GB)}

^{- COELBO (IT)}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITY}

^{- SINGAPOREAN-GERMAN CHAMBER OF INDUSTRY & COMMERCE}

^{ACCORDING TO THE TELE-INTERVIEW CONDUCTED ON 26/01/2007, THE FOLLOWING INFORMATION WAS GATHERED:}

^{SUBJECT'S PERSONNEL CONFIRMED THE BUSINESS ADDRESS AND CONTACT NUMBERS OF THE COMPANY, BUT DECLINED TO PROVIDE MORE INFORMATION, HENCE NO OTHER TRADE INFORMATION WAS MADE AVAILABLE VIA THE TELE-INTERVIEW.}

^{THE IMMEDIATE HOLDING COMPANY IS BARTEC GMBH AND THE ULTIMATE HOLDING COMPANY IS ALLIANZ AG, MUNICH, A PUBLIC LISTED COMPANY QUOTED ON THE GERMAN STOCK EXCHANGE. BOTH COMPANIES ARE INCORPORATED IN GERMANY.}

^{NUMBER OF EMPLOYEES (30 APRIL)}

^{- COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{63 HILLVIEW AVENUE}

^#07-20/21

^{LAM SOON INDUSTRIAL BUILDING}

^{SINGAPORE 669569}

^{DATE OF CHANGE OF ADDRESS: 28/11/2003}

^{- RENTED PREMISES}

^{- OWNED BY: LAM SOON REALTY (PTE) LTD}

^{- ASIAN HEADQUARTERS}

^WEBSITE:

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

^EMAIL:

^{info@bartecasia.com}

MANAGEMENT

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

^{1) RALF KOSTER, A GERMAN}

^{- BASED IN GERMANY}

^{2) LOTHAR FRANZ MEZGER, A GERMAN}

^{- BASED IN GERMANY}

^{3) LUCIANO CHECCO, AN ITALIAN}

^{- BASED IN SINGAPORE}

Singapore’s Country Rating 2006

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 AND RETAIL TRADE

^{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.}

^{WHOLESALE TRADE}

^{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.}

^{AT CONSTANT PRICES, THE OVERALL INDEX DECLINED BY 4.4% IN 1Q2006 OVER 1Q2005, MAINLY DUE TO LOWER ACTIVITY IN CHEMICAL AND PETROLEUM SECTORS. EXCLUDING PETROLEUM, IT WAS 7.9% HIGHER THAN A YEAR AGO.}

^{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%.}

^{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%.}

^{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%.}

^{THE MAJOR SECTORS MOSTLY POSTED LOWER FOREIGN SALES WITH THE EXCEPTION OF TELECOMMUNICATIONS & COMPUTERS SECTOR IN 1Q2006. THE HOUSEHOLD EQUIPMENT & FURNITURE, FOOD, BEVERAGES & TOBACCO SECTOR ALL REPORTED DECLINE IN TURNOVER OF MORE THAN 17% IN THE FIRST QUARTER OF 2006 OVER 4Q2005.}

^{RETAIL TRADE}

^{RETAIL SALES CHALKED UP 8.0% GROWTH IN 1Q2006, FELLING MARGINALLY FROM THE 8.2% GROWTH IN 4Q2005. SALES OF MOTOR VEHICLES ROSE BY 10% IN 1Q2006, HIGHER THAN THE 8.5% GAIN IN THE LAST QUARTER. EXCLUDING MOTOR VEHICLES, RETAIL SALES MODERATED TO 5.2% GROWTH, SLOWER THAN THE 7.8% RISE IN 4Q2005.}

^{ALL THE MAJOR SEGMENTS RECORDED GROWTH IN 1Q2006 OVER 1Q2005, WITH GROWTH RANGING FROM 1.6% TO 18%. THE SEGMENTS WERE TELECOMMUNICATIONS AND COMPUTERS, FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, OPTICAL GOODS AND BOOKS, PROVISION AND SUNDRY SHOPS, DEPARTMENT STORES, SUPERMARKETS, MEDICAL GOODS AND TOILETRIES, RECREATIONAL GOODS, FURNITURE AND HOUSEHOLD EQUIPMENT, WATCHES AND JEWELLERY, AND PETROL SERVICE STATIONS.}

^{A ROSY OUTLOOK FOR RETAILERS}

^{RETAIL SALES IN SINGAPORE ROSE IN JUNE FOR THE 16TH STRAIGHT MONTH AS AN IMPROVING JOB MARKET AND A RISE IN TOURIST ARRIVALS INCREASED CONSUMER SPENDING.}

^{THE RETAIL SALES INDEX GREW BY 5.1% FROM A YEAR EARLIER AFTER EXPANDING BY 13.1% IN MAY. EXCLUDING MOTOR VEHICLES, RETAIL SALES GREW BY 7.8%.}

^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.}

^{RETAILERS ALSO FORECAST BETTER BUSINESS SENTIMENTS FOR THE COMING MONTHS ENDING DECEMBER 2006, WITH A NET BALANCE OF 22%, ESPECIALLY DEPARTMENT STORES AND RETAILERS OF WEARING APPAREL AND FURNITURE & FURNISHINGS EXPECTING A POSITIVE BUSINESS OUTLOOK FROM THE YEAR-END FESTIVE SHOPPING.}

^{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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