MIRA INFORM REPORT

Report Date :

28.06.2007

IDENTIFICATION DETAILS

Name :	UNITED STEEL PTE. LTD.
Registered Office :	^30^Gul Avenue, Singapore^– 629670
Country :	Singapore
Financials (as on) :	30.06.2006
Date of Incorporation :	^26/11/1997
Com. Reg. No.:	^199708062W
Legal Form :	^Exempt Pte Ltd
Line of Business :	Trading in all kinds of Coils

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

UNITED STEEL PTE. LTD.

Line Of Business 

TRADING IN ALL KINDS OF COILS

Parent Company

--

Financial Elements

FY 2006

COMPANY

Sales : S$10,009,274

Networth : S$335,630

Paid-Up Capital : S$100,000

Net result : S$116,767

Net Margin(%) : 1.17

Return on Equity(%) : 34.79

Leverage Ratio : 6.06

COMPANY IDENTIFICATION

^{Subject Company: UNITED STEEL PTE. LTD.}

^{Former Name: SS BUILDMAT (S) PTE LTD}

^{Business Address: 30 GUL AVENUE}

^{Town: SINGAPORE}

^{Postcode: 629670}

^{County: -}

^{Country: Singapore}

^{Telephone: 6558 7588}

^{Fax: 6558 7008}

^{ROC Number: 199708062W}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{SS BUILDMAT (S) PTE LTD DATE OF CHANGE OF NAME: 13/09/2003}

SUMMARY

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

^{Legal Form: Exempt Pte Ltd}

^{Date Inc.: 26/11/1997}

^{Previous Legal Form: -}

^{Summary year: 30/06/2006}

^{Sales: 10,009,274}

^{Net worth: 335,630}

^{Capital: -}

^{Paid-Up Capital: 100,000}

^{Employees: Not available}

^{Net result: 116,767}

^{Share value: -}

^{Auditor: LEE S F & CO}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 26/11/1997}

PRINCIPAL(S)

^{LIM JEE KEOW S1509544Z Director}

DIRECTOR(S)

^{LIM JEE KEOW S1509544Z Director}

^{Appointed on: 15/09/2006}

^{Street: 82 HILL VIEW AVENUE}

^#01-07

^{CHANTILLY RISE}

^{Town: SINGAPORE}

^{Postcode: 669581}

^{Country: Singapore}

^{LEE SIEW YIN S1416387E Company Secretary}

^{Appointed on: 26/11/1997}

^{Street: 107 JALAN RAJAH}

^#07-111

^{Town: SINGAPORE}

^{Postcode: 320107}

^{Country: Singapore}

^{CHAN CHEE WING A12700286 Director}

^{Appointed on: 06/08/2003}

^{Street: 12-00-05 FLAT SRI 3}

^{MELAKA BATU 4}

^{JALAN CHERAS}

^{Town: KUALA LUMPUR}

^{Postcode: 56100}

^{Country: Malaysia}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{STEEL PRODUCTS Code:20410}

^{COILS - ELECTRIC Code:4856}

^{BASED ON ACRA'S RECORD AS AT 25/06/2007}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); IMPORTERS & EXPORTERS OF ALL PRIME AND SECONDARY STEEL & RELATED COIL MAGNETS; STEEL FABRICATION AND REALTED SERVICES}

CHARGES

^{Date: 07/12/2006}

^{Comments: CHARGE NO: C200608259}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

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

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{ABN AMRO BANK NV}

SHAREHOLDERS(S)

^{LIM JEE KEOW 102,000 Private Person}

^{Street: 82 HILL VIEW AVENUE}

^#01-07

^{CHANTILLY RISE}

^{Town: SINGAPORE}

^{Postcode: 669581}

^{Country: Singapore}

^{CHAN CHEE WING 98,000 Private Person}

^{Street: 12-00-05 FLAT SRI 3}

^{MELAKA BATU 4}

^{JALAN CHERAS}

^{Town: KUALA LUMPUR}

^{Postcode: 56100}

^{Country: Malaysia}

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 unless otherwise stated}

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

^{Date Account Lodged: 06/02/2007}

^{Balance Sheet Date: 30/06/2006 30/06/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 132,325 9,600}

^{Total Fixed Assets: 132,325 9,600}

^{Inventories: 449,931 671,313}

^{Receivables: 1,409,102 439,429}

^{Cash,Banks,Securities: 131,569 74,405}

^{Other current assets: 247,394 29,596}

^{Total Current Assets: 2,237,996 1,214,743}

^{TOTAL ASSETS: 2,370,321 1,224,343}

^{--- LIABILITIES}

^{Equity capital: 100,000 100,000}

^{Profit & loss Account: 235,630 118,863}

^{Total Equity: 335,630 218,863}

^{Long Term Loans: - 428}

^{Other long term Liab.: 80,030 -}

^{Total L/T Liabilities: 80,030 428}

^{Trade Creditors: 1,612,027 837,142}

^{Prepay. & Def. charges: 6,500 9,708}

^{Short term liabilities: 18,840 -}

^{Due to Bank: 85,594 21,803}

^{Provisions: 41,197 42,600}

^{Other Short term Liab.: 190,503 93,799}

^{Total short term Liab.: 1,954,661 1,005,052}

^{TOTAL LIABILITIES: 2,034,691 1,005,480}

PROFIT & LOSS ACCOUNT

^{Net Sales 10,009,274 7,268,013}

^{Purchases,Sces & Other Goods: 9,448,423 6,720,224}

^{Gross Profit: 560,851 547,789}

^{Result of ordinary operations 193,618 141,502}

^{NET RESULT BEFORE TAX: 140,292 126,876}

^{Tax: 23,525 22,000}

^{Net income/loss year: 116,767 104,876}

^{Interest Paid: 3,761 1,451}

^{Depreciation: 10,873 8,456}

^{Directors Emoluments: 106,000 138,000}

^{Wages and Salaries: 81,552 88,942}

^{Financial Income: 7 21}

RATIOS

^{30/06/2006 30/06/2005}

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

^{Stock / Turnover(%): 0.04 0.09}

^{Net Margin(%): 1.17 1.44}

^{Return on Equity(%): 34.79 47.92}

^{Return on Assets(%): 4.93 8.57}

^{Net Working capital: 283335.00 209691.00}

^{Cash Ratio: 0.07 0.07}

^{Quick Ratio: 0.79 0.51}

^{Current ratio: 1.14 1.21}

^{Receivables Turnover: 50.68 21.77}

^{Leverage Ratio: 6.06 4.59}

^{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 FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 53.35% FROM S$218,863 IN 2005 TO S$335,630 IN 2006.}

^{THIS WAS DUE TO HIGHER UNAPPROPRIATED PROFIT OF S$235,630 (2005: S$118,863); A RISE OF 98.24% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 82.47% (2005: 83.29%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$1,612,027 (2005: S$837,142).}

^{AMOUNTS DUE TO BANKS ROSE BY 2.93 TIMES TO S$85,594 (2005: S$21,803), AND CONSIST OF THE FOLLOWING:}

^{-TERM LOAN (UNSECURED) - 2006: S$428 (2005: S$21,803)}

^{-BANK OVERDRAFTS (SECURED) - 2006: S$85,166 (2005: - )}

^{SUBJECT'S LONG TERM LIABILITIES ROSE SHARPLY BY 185.99 TIMES TO S$80,030 (2005: S$428), AND CONSIST OF THE FOLLOWING:}

^{-TERM LOAN (UNSECURED) - 2006: - (2005: S$428)}

^{-HIRE PURCHASE CREDITORS - 2006: S$80,030 (2005: - )}

^{IN ALL, LEVERAGE RATIO ROSE FROM 4.59 TIMES TO 6.06 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 35.12% TO S$283,335 (2005: S$209,691).}

^{SIMILARLY, CASH AND CASH EQUIVALENTS ROSE SHARPLY BY 76.83% TO S$131,569 (2005: S$74,405).}

^{CURRENT RATIO FELL TO 1.14 TIMES, DOWN FROM 1.21 TIMES AND QUICK RATIO IMPROVED TO 0.79 TIMES FROM 0.51 TIMES IN 2005.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 37.72% FROM S$7,268,013 IN 2005 TO S$10,009,274 AND NET PROFIT ROSE BY 11.34% TO S$116,767 (2005: S$104,876).}

^{HOWEVER, NET MARGIN FELL TO 1.17% (2005: 1.44%).}

^{THIS COULD BE DUE TO THE LOWER GROSS MARGIN OF 5.60% IN 2006 (2005: 7.54%).}

^{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 38.30 TIMES (2005: 88.44 TIMES).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{BANKING FACILITIES – SECURED}

^{THE BANKING FACILITIES ARE SECURED BY:}

^{1) A CHARGE ON FIXED DEPOSIT FOR S$50,000 PLACED WITH THE BANK}

^{2) A JOINT AND SEVERAL DIRECTORS GUARANTEE BY DIRECTORS OF THE COMPANY}

^{SUBSEQUENT EVENT}

^{SUBSEQUENT TO THE BALANCE SHEET DATE, THE COMPANY ISSUED 100,000 ORDINARY SHARES OF S$1 EACH TO PROVIDE FOR ADDITIONAL 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 13/09/2003 AS A LIMITED EXEMPT PRIVATE COMPANY UNDER THE NAMESTYLE OF "SS BUILDMAT SUPPLIES (S) PTE LTD". ON 07/04/1999, IT CHANGED TO THE NAMESTYLE OF "SS BUILDMAT (S) PTE LTD".}

^{SUBSEQUENTLY ON 13/09/2003, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE OF "UNITED STEEL PTE. LTD."}

^{AS AT 25/06/2007, 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) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS);}

^{IMPORTERS & EXPORTERS OF ALL PRIME AND SECONDARY STEEL & RELATED PRODUCTS}

^{2) MANUFACTURING OF OTHER FABRICATED METAL PRODUCTS (INCLUDING VOICE COIL MAGNETS;}

^{STEEL FABRICATION AND REALTED SERVICES)}

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE TO CARRY ON THE BUSINESS OF TRADING IN ALL KINDS OF COILS.}

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

^ACTIVITIES

^{- GLOBAL STEEL TRADING COMPANY AND CARRY STOCKIST}

^PRODUCTS

^{*SECONDARY METAL MATERIALS/ FERROUS METAL SCRAPS}

^{- EG/GI/CR COVER SHEETS}

^{- CR CORNER CUTTING}

^{- EG/GI/CR CUT SHEETS & TOP ENDS}

^{- EG / CR CENTER PLATES OR TV PANELS}

^{- ETP COILS & SHEETS}

^{- TIN FREE STEEL COILS & SHEETS}

^{- TINPLATE BLANK}

^{- VINYL TOP CUT SHEETS ASSORTED}

^{- HMS 1 & 2}

^{- REROLLABLE SCRAPS}

^{- BLOOMS}

^{- BILLETS}

^{- COBBLE PLATES}

^{- USED RAILS}

^{- USED BEAMS & SHEET PILES}

^{- USED MOTORS AND TRANSFORMERS}

^{- FULLY ASSORTED SECONDARY/ OVERROLLED EG/GI/CR SHEETS}

^{- UNASSORTED SECONDARY EG/GI/CR SHEET}

^{*PRIME, & PRIME OVERROLLED AND SECONDARY STEEL COILS/SHEETS}

^{- SECONDARY MIX SLIT COILS}

^{- SECONDARY EG/GI/CR/GALVALUME BASE COLOR COILS/ SHEETS}

^{- SECONDARY TMBP/TFS/ETP COILS/ SHEETS}

^{- SECONDARY CRNGO/CRGO COILS/ SHEETS}

^{*NON-FERROUS SECONDARY & SCRAPS}

^{- STAINLESS STEEL 300 & 400 SERIES COILS , SHEETS , SLIT COILS AND SCRAPS}

^{- SECONDARY WELDED STAINLESS STEEL 300 AND 400 SERIES PIPES AND FITTINGS}

^{- SECONDARY SEAMLESS STAINLESS STEEL 300 AND 400 SERIES PIPES AND FITTINGS}

^{- ALUMINIUM COILS , SHEETS , SLIT COILS & SCRAPS}

^{- COPPER SCRAPS}

^{- OTHERS}

^{*SECONDARY PIPES AND PIPE FITTINGS}

^{- SECONDARY SEAMLESS CARBON STEEL PIPES, BOILER PIPES , GALVANIZED PIPES AND OTHERS}

^{KIND OF PIPES}

^{- CARBON STEEL STOCK LOTS OF FLANGES AND FITTING}

^SERVICES

^{- SLITTING}

^{- SHEARING}

^{MARKET PRESENCE}

^{- AUSTRALIA, JAPAN, KOREA, TAIWAN, UK, CHINA , EUROPE , INDIA, CANADA, USA,}

^{VIETNAM, CAMBODIA, PAKISTAN ,BANGLADESH , INDONESIA, CHINA, INDIA, SRI LANKA,}

^{THAILAND, MALAYSIA, MIDDLE EAST AND SINGAPORE}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 28/06/2007.}

^{NUMBER OF EMPLOYEES (30 JUNE)}

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

^{REGISTERED AND BUSINESS ADDRESS:}

^{30 GUL AVENUE}

^{SINGAPORE 629670}

^{DATE OF CHANGE OF ADDRESS: 01/09/2003}

^{- RENTED PREMISE}

^{- OWNED BY: SENG SIT METAL INDUSTRIES PTE LTD}

^WEBSITE:

^{www.unitedsteel.com.sg}

^EMAIL:

^{info@unitedsteel.com.sg}

MANAGEMENT

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

^{1) CHAN CHEE WING, A MALAYSIAN}

^{- BASED IN MALAYSIA}

^{2) LIM JEE KEOW, A SINGAPOREAN}

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

^{SENG SIT METAL INDUSTRIES 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/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

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