MIRA INFORM REPORT

Report Date :

29^th January, 2007

IDENTIFICATION DETAILS

Name :	GLOBAL TRADE WELL PTE LTD

Registered Office :	63 Robinson Road #04-16 Afro Asia Building, Singapore 068894, Singapore.

Country :	Singapore

Financials (as on) :	31.03.2006

Date of Incorporation :	11.04.1998

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Trading Company Dealing In Textile Raw Material Supplies.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Company Name

GLOBAL TRADE WELL PTE LTD

Line Of Business

TRADING COMPANY DEALING IN TEXTILE RAW MATERIAL SUPPLIES

Parent Company

Financial Elements

FY 2006

COMPANY

Sales : USD57,323,738

Networth : USD1,269,634

Paid-Up Capital : USD909,091

Net result : USD84,088

Net Margin(%) : 0.15

Return on Equity(%) : 6.62

Leverage Ratio : 6.62

Rating

Credit Rating : Sing $ 1 000 00 1 to Sing $ 5 00 000

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

^{Subject Company :
GLOBAL TRADE WELL PTE LTD}

^{Former Name :
-}

^{Business Address :
63 ROBINSON ROAD} ^#04-16 ^{AFRO ASIA BUILDING}

^{Town :
SINGAPORE}

^{Postcode :
068894}

^{County :
-}

^{Country :
Singapore}

^{Telephone :
6226 7242}

^{Fax :
6226 7275}

^{ROC Number :
199801766M}

^{Reg. Town :
-}

SUMMARY

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

^{Legal Form :
Exempt Pte Ltd}

^{Date Inc. :
11/04/1998}

^{Previous Legal Form :
-}

^{Summary year :
31/03/2006}

^{Sales :
57,323,738}

^{Net Worth :
1,269,634}

^{Capital :
-}

^{Paid-Up Capital :
909,091}

^{Employees :
6}

^{Net result :
84,088}

^{Share value :
-}

^{Auditor :
MGI N RAJAN ASSOCIATES}

REFERENCES

^{Litigation :
No}

^{Company status :
TRADING}

^{Started :
11/04/1998}

PRINCIPAL(S)

^{KAMAL KISHORE S2693397H Managing Director}

DIRECTOR(S)

VENKATARAMAIYER SIVARAMAKRISHNAN S0033476F Company Secretary

Appointed on : 22/05/1998

Street : 666 YISHUN AVENUE 4 #05-159

Town : SINGAPORE

Postcode : 760666

Country : Singapore

KAMAL KISHORE S2693397H Director

Appointed on : 11/04/1998

Street : 12 AMBER GARDENS #14-06, KING'S MANSION

Town : SINGAPORE

Postcode : 439959

Country : Singapore

KAMAL KISHORE S2693397H Managing Director

Appointed on : 25/05/1998

Street : 12 AMBER GARDENS, #14-06, KING'S MANSION

Town : SINGAPORE

Postcode : 439959

Country : Singapore

SANTOSH DEVI SHARMA S2693398F Director

Appointed on : 11/04/1998

Street : 12 AMBER GARDENS, #14-06, KING'S MANSION

Town : SINGAPORE

Postcode : 439959

Country : Singapore

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{TEXTILE MERCHANTS Code:21450}

^{YARN - WHSLE And MFRS Code:24260}

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

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL
IMPORTERS & EXPORTERS)}

CHARGES

^{Date :
29/09/1999}

^{Comments :
CHARGE NO: 199904146}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE(S) :
STANDARD CHARTERED BANK}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{STANDARD CHARTERED BANK}

^{INDIAN BANK}

SHAREHOLDERS(S)

KAMAL KISHORE 1,500,000 Private Person

Street : 12 AMBER GARDENS, #14-06, KING'S MANSION

Town : SINGAPORE

Postcode : 439959

Country : Singapore

SANTOSH DEVI SHARMA 500,000 Private Person

Street : 12 AMBER GARDENS, #14-06, KING'S MANSION

Town : SINGAPORE

Postcode : 439959

Country : Singapore

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: USD unless otherwise stated}

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

^{Date Account Lodged: 04/11/2006}

^{Balance Sheet Date: 31/03/2006 31/03/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

ASSETS

^{Tangible Fixed Assets: -
-}

^{Total Fixed Assets}^{: - -}

^{Receivables: 8,577,109 8,032,038}

^{Cash,Banks,Securities: 1,072,232 879,825}

^{Other current assets: 25,790 35,769}

^{Total Current Assets}^{: 9,675,131 8,947,632}

^{TOTAL ASSETS: 9,675,131 8,947,632}

LIABILITIES

^{Equity capital: 909,091 909,091}

^{Profit & loss Account: 360,543 276,455}

^{Total Equity: 1,269,634 1,185,546}

^{Trade Creditors: 2,719,726 4,412,015}

^{Prepay. & Def. charges: 149,195 173,484}

^{Due to Bank: 5,341,850 3,068,192}

^{Provisions: 25,007 12,974}

^{Other Short term Liab.: 169,719 95,421}

^{Total short term Liab}^{.: 8,405,497 7,762,086}

^{TOTAL LIABILITIES: 8,405,497 7,762,086}

PROFIT & LOSS ACCOUNT

^{Net Sales 57,323,738 51,384,624}

^{Purchases,Sces & Other Goods: 55,979,953
50,311,173}

^{Gross Profit: 1,343,785 1,073,451}

^{Result of ordinary operations 969,457 642,324}

^{NET RESULT BEFORE TAX: 98,886 85,831}

^{Tax: 14,798 11,187}

^{Net income/loss year:
84,088 74,645}

^{Interest Paid: 870,571 556,493}

^{Depreciation: 12,831 1,359}

^{Directors Emoluments: 80,000 80,000}

^{Wages and Salaries: 130,818 103,302}

^{Financial Income: 27,623 14,600}

RATIOS

^{31/03/2006 31/03/2005}

^{Turnover per employee: 9553956.33
8564104.00}

^{Fin. Charges / Turnover(%): 0.02 0.01}

^{Net Margin(%): 0.15 0.15}

^{Return on Equity(%): 6.62 6.30}

^{Return on Assets(%): 0.87 0.83}

^{Net Working capital: 1269634.00 1185546.00}

^{Cash Ratio: 0.13 0.11}

^{Quick Ratio: 1.15 1.15}

^{Current ratio: 1.15 1.15}

^{Receivables Turnover: 53.87 56.27}

^{Leverage Ratio: 6.62 6.55}

^{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}

^{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} ^{7.09%
FROM USD1,185,546 IN 2005 TO USD1,269,634 IN 2006.}

^{THIS WAS DUE TO HIGHER ACCUMULATED PROFITS OF
USD360,543} ^{(2005:
USD276,455); A RISE OF 30.42% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM IN 2006, SUBJECT WAS LARGELY FINANCED
BY TRUST} ^{RECEIPTS
WHICH MADE UP 63.55% (2005: 39.53%) OF THE TOTAL CURRENT} ^{LIABILITIES
AND AMOUNTED TO USD5,341,850 (2005: USD3,068,192).}

^{HOWEVER, IN THE SHORT-TERM IN 2005, SUBJECT WAS
LARGELY FINANCED BY} ^{TRADE
PAYABLES WHICH MADE UP 56.84% (2006: 32.36%) OF THE TOTAL} ^{CURRENT
LIABILITIES AND AMOUNTED TO USD4,412,015 (2006: USD2,719,726).}

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

^{IN ALL, LEVERAGE RATIO ROSE FROM 6.55 TIMES TO 6.62
TIMES AS A RESULT} ^{OF
A MORE THAN PROPORTIONATE RISE IN TOTAL LIABILITIES AS COMPARED TO} ^{THE
RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS
PASSABLE AS SEEN FROM} ^{THE
RISE IN NET WORKING CAPITAL BY 7.09% TO USD1,269,634} ^{(2005:
USD1,185,546).}

^{CURRENT RATIO AND QUICK RATIO BOTH REMAINED AT 1.15
TIMES DURING THE} ^{FINANCIAL
YEAR.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 11.56% FROM
USD51,384,624 IN 2005 TO} ^{USD57,323,738
AND NET PROFIT ROSE BY 12.65% TO USD84,088} ^{(2005: USD74,645).}

^{NET MARGIN REMAINED AT 0.15% (2005: 0.15%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF
REVENUE AND EARNINGS} ^{CAN
BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN} ^{ADDITION,
ITS INTEREST COVERAGE WAS HEALTHY AS SHOWN BY ITS INTEREST} ^{COVERAGE
RATIO OF 1.11 TIMES}

^{(2005: 1.15 TIMES).}

^{NOTES TO THE FINANCIAL
STATEMENTS:}

^{TRUST RECEIPTS}

^{THIS IS SECURED AGAINST FIXED DEPOSITS AND
GUARANTEE BY THE DIRECTORS} ^{AND
CARRIES INTEREST AT SIBOR + 1.5% (2005: 3.95%). SIBOR RATE AS OF} ^{31
MARCH 2006 IS 5.03%.}

^{CONTINGENT LIABILITIES}

^{IN RESPECT OF LETTERS OF CREDIT - 2006:
USD5,330,627} ^{(2005:
USD6,706,210)}

^{IN RESPECT OF BILLS DISCOUNTED - 2006: USD6,698,732} ^{(2005: USD4,339,674)}

^{EVENTS AFTER THE BALANCE SHEET DATE}

^{SUBSEQUENT TO BALANCE SHEET DATE, THE COMPANY HAS
INCREASED ITS PAID} ^{UP
CAPITAL TO S$2,000,000 FROM S$1,500,000/- BY ALLOTING ADDITIONAL} ^{500,000
ORDINARY SHARES FOR CASH CONSIDERATION FOR WORKING CAPITAL} ^{REQUIREMENTS.}

^{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} ^{11/04/1998
AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER} ^{THE PRESENT
NAMESTYLE OF "GLOBAL TRADE WELL PTE LTD".}

^{AS AT 23/01/2007, THE COMPANY HAS AN ISSUED AND
PAID-UP CAPITAL OF} ^{2,000,000
SHARES, OF A VALUE OF S$2,000,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL
IMPORTERS & EXPORTERS)}

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW, THE
PRINCIPAL ACTIVITIES} ^{OF
THE COMPANY ARE TO CARRY ON THE BUSINESS OF GENERAL IMPORTERS AND} ^{EXPORTERS,
PURCHASING AGENTS, AND REPRESENTATIVES FOR ALL GENERAL} ^MERCHANDISE.

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

^ACTIVITIES

^{- TRADING COMPANY DEALING IN TEXTILE RAW MATERIAL
SUPPLIES}

^PRODUCTS

^{- POLYESTER CHIPS / POLYESTER}

^{- NYLON YARNS}

^{- FIBERS}

^{- SPUN YARNS}

^{- TEXTILE MACHINES AND PARTS}

^{MARKET PRESENCE}

^{- SOUTH EAST ASIA}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITY}

^{- SINGAPORE BUSINESS FEDERATION}

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

^ACTIVITIES

^{- IMPORT AND EXPORT OF TEXTILES}

^{SUBJECT'S PERSONNEL REVEALED THAT THE COMPANY DOES
NOT ENGAGE IN THE} ^{BUSINESS
OF WHOLSALING ITS PRODUCTS IN SINGAPORE.}

^{EXPORT COUNTRIES}

^{- INDIA, CHINA AND THAILAND}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE VIA
THE TELE-INTERVIEW.}

^{NUMBER OF EMPLOYEES (31 MARCH)}

^{- COMPANY - 2006: 6 (2005: 5)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{63 ROBINSON ROAD}

^#04-16

^{AFRO ASIA BUILDING}

^{SINGAPORE 068894}

^{DATE OF CHANGE OF ADDRESS: 01/07/1998}

^{- RENTED PREMISE}

^{- OWNED BY: AFRO-ASIA SHIPPING COMPANY (PRIVATE)
LIMITED}

^WEBSITE:

^NIL

^EMAIL:

^{himcorp@pacific.net.sg}

MANAGEMENT

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

^{1) KAMAL KISHORE, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR
DATABASE.}

^{2) SANTOSH DEVI SHARMA, A SINGAPORE PERMANENT
RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR
DATABASE.}

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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