MIRA INFORM REPORT

Report Date :

03.07.2007

IDENTIFICATION DETAILS

Name :	TYCO HEALTHCARE PTE LTD
Registered Office :	^26 Ang Mo Kio Industrial Park 2, # 04-01, Singapore – 569507
Country :	Singapore
Financials (as on) :	30.09.2005
Date of Incorporation :	^03/02/1998
Com. Reg. No.:	^199800515M
Legal Form :	^Pte Ltd
Line of Business :	Marketing and Distribution of Medical Products and Equipment

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

TYCO HEALTHCARE PTE LTD

Line Of Business 

MARKETING AND DISTRIBUTION OF MEDICAL PRODUCTS AND EQUIPMENT

Parent Company

TYCO GROUP S. A. R. L

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2005

COMPANY

Sales : USD110,555,784

Networth : USD22,932,826

Paid-Up Capital : USD11,214,000

Net result : USD2,667,347

Net Margin(%) : 2.41

Return on Equity(%) : 11.63

Leverage Ratio : 3.23

COMPANY IDENTIFICATION

^{Subject Company: TYCO HEALTHCARE PTE LTD}

^{Former Name: KENDALL MEDICAL FAR EAST PTE LTD}

^{Business Address: 26 ANG MO KIO INDUSTRIAL PARK 2}

^{# 04-01}

^{Town: SINGAPORE}

^{Postcode: 569507}

^{County: -}

^{Country: Singapore}

^{Telephone: 6482 0100}

^{Fax: 6482 0779/ 6482 0300}

^{ROC Number: 199800515M}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{KENDALL MEDICAL FAR EAST PTE LTD DATE OF CHANGE OF NAME: 28/07/1999}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 03/02/1998}

^{Previous Legal Form: -}

^{Summary year: 30/09/2005}

^{Sales: 110,555,784}

^{Net worth: 22,932,826}

^{Capital: 24,000,000}

^{Paid-Up Capital: 11,214,000}

^{Employees: Not available}

^{Net result: 2,667,347}

^{Share value: 1}

^{Auditor: DELOITTE & TOUCHE}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 03/02/1998}

PRINCIPAL(S)

^{LIM CHWEE LAN SERENE S1354912E Director}

DIRECTOR(S)

^{WALTER TARCA S2726133G Director}

^{Appointed on: 20/02/2001}

^{Street: 2 KIM SENG WALK}

^#31-07

^{Town: SINGAPORE}

^{Postcode: 239404}

^{Country: Singapore}

^{TEO TECK CHONG EDMUND S6963454J Director}

^{Appointed on: 10/12/2003}

^{Street: 173 CHIN SWEE ROAD}

^#14-04

^{LANDMARK TOWER}

^{Town: SINGAPORE}

^{Postcode: 169878}

^{Country: Singapore}

^{LIM CHWEE LAN SERENE S1354912E Director}

^{Appointed on: 10/12/2003}

^{Street: 41A BEDOK RIA CRESCENT}

^#02-53

^{STRATFORD COURT}

^{Town: SINGAPORE}

^{Postcode: 489929}

^{Country: Singapore}

^{THAM MAY CHENG S2565810H Company Secretary}

^{Appointed on: 01/03/2005}

^{Street: 234 HOUGANG AVENUE 1}

^#04-260

^{Town: SINGAPORE}

^{Postcode: 530234}

^{Country: Singapore}

^{CHOONG HWEI FONG S7084489C Company Secretary}

^{Appointed on: 01/03/2005}

^{Street: 320 ANG MO KIO AVENUE 1}

^#03-1515

^{Town: SINGAPORE}

^{Postcode: 560320}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{GAVAN MATTHEW FOX F5646863M}

^{LOH LEE ENG S1289585B}

^{ABDUL JABBAR BIN KARAM DIN S6936625B}

^{RICHARD JOSEPH MEELIA 140768506}

ACTIVITY(IES)

^{SCIENTIFIC APPARATUS And INSTRUMENTS Code:19027}

^{MEDICAL ELECTRONICS Code:13650}

^{BASED ON ACRA'S RECORD AS AT 28/06/2007}

^{1) ACTIVITIES NOT ADEQUATELY DEFINED; MARKETING & DISTRIBUTION OF MEDICAL PRODUCTS & EQUIPMENT}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{CITIBANK N.A.}

SHAREHOLDERS(S)

^{TYCO GROUP S. A. R. L 19,211,234 Company}

^{Street: 17 BOULEVARD GRANDE DUCHESSE CHARL}

^{OL-1331,LUXEMBOURG}

^{Town: -}

^{Postcode: -}

^{Country: United States}

HOLDING COMPANY

^{TYCO GROUP S. A. R. L UF24007W %: 100}

SUBSIDIARY(IES)

^{TYCO HEALTHCARE (ISRAEL) LTD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: DOWNWARD}

^{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) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 07/04/2006}

^{Balance Sheet Date: 30/09/2005 30/09/2004 30/09/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 116,212 199,212 -}

^{Tangible Fixed Assets: 1,763,244 838,736 1,684,911}

^{Investments 10,714,000 10,714,000 18,549,915}

^{Total Fixed Assets: 12,593,456 11,751,948 20,444,826}

^{Inventories: 12,072,233 18,725,571 28,057,420}

^{Receivables: 42,516,644 35,182,837 46,407,376}

^{Cash,Banks,Securities: 354,748 229,504 172,601}

^{Other current assets: 29,387,768 17,419,473 17,877,665}

^{Total Current Assets: 84,331,393 71,557,385 92,515,062}

^{TOTAL ASSETS: 96,924,849 83,309,333 112,959,888}

^{--- LIABILITIES}

^{Equity capital: 11,214,000 11,214,000 19,211,234}

^{Profit & loss Account: 11,718,826 9,051,479 9,125,270}

^{Total Equity: 22,932,826 20,265,479 28,336,504}

^{Other long term Liab.: 5,909,061 5,895,000 10,040,017}

^{Total L/T Liabilities: 5,909,061 5,895,000 10,040,017}

^{Trade Creditors: 61,512,342 52,303,659 66,657,272}

^{Prepay. & Def. charges: 2,979,947 2,350,474 -}

^{Provisions: 1,286,869 1,303,078 827,390}

^{Other Short term Liab.: 2,303,804 1,191,643 7,098,705}

^{Total short term Liab.: 68,082,962 57,148,854 74,583,367}

^{TOTAL LIABILITIES: 73,992,023 63,043,854 84,623,384}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 110,555,784 95,591,922 147,851,512}

^{Purchases,Sces & Other Goods: 86,109,408 72,411,919 -}

^{Gross Profit: 24,446,376 23,180,003 35,437,159}

^{Result of ordinary operations 3,407,767 4,685,061 7,320,638}

^{NET RESULT BEFORE TAX: 3,210,708 4,572,832 6,920,413}

^{Tax: 543,361 651,107 613,935}

^{Net income/loss year: 2,667,347 3,921,725 6,306,478}

^{Interest Paid: 197,059 112,229 781,492}

^{Depreciation: 509,853 456,403 810,239}

^{Directors Emoluments: 936,358 774,598 780,304}

^{Wages and Salaries: 5,337,809 4,983,466 7,634,332}

RATIOS

^{30/09/2005 30/09/2004 30/09/2003}

^{Net result / Turnover(%): 0.02 0.04 0.04}

^{Fin. Charges / Turnover(%): 0.00 0.00 0.01}

^{Stock / Turnover(%): 0.11 0.20 0.19}

^{Net Margin(%): 2.41 4.10 4.27}

^{Return on Equity(%): 11.63 19.35 22.26}

^{Return on Assets(%): 2.75 4.71 5.58}

^{Net Working capital: 16248431.00 14408531.00 17931695.00}

^{Cash Ratio: 0.01 0.00 0.00}

^{Quick Ratio: 0.63 0.62 0.62}

^{Current ratio: 1.24 1.25 1.24}

^{Receivables Turnover: 138.45 132.50 113.00}

^{Leverage Ratio: 3.23 3.11 2.99}

^{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 TO STABLE IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 13.16% FROM USD20,265,479 IN 2004 TO USD22,932,826 IN 2005.}

^{THIS WAS DUE TO HIGHER ACCUMULATED PROFITS OF USD11,718,826 (2004: USD9,051,479); A RISE OF 29.47% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 90.35% (2004: 91.52%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO USD61,512,342 (2004: USD52,303,659). THE BREAKDOWN IS AS FOLLOWS:}

^{-OUTSIDE PARTIES - 2005: USD298,394 (2004: USD254,118)}

^{-RELATED COMPANIES - 2005: USD61,213,948 (2004: USD52,049,541)}

^{SUBJECT'S LONG TERM LIABILITY, WHICH CONSIST OF LOAN FROM A RELATED COMPANY, ROSE BY 0.24% TO USD5,909,061 (2004: USD5,895,000).}

^{IN ALL, LEVERAGE RATIO ROSE FROM 3.11 TIMES TO 3.23 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 12.77% TO USD16,248,431 (2004: USD14,408,531).}

^{SIMILARLY, CASH AND CASH EQUIVALENTS ROSE SHARPLY BY 54.57% TO USD354,748}

^{(2004: USD229,504).}

^{CURRENT RATIO FELL TO 1.24 TIMES, DOWN FROM 1.25 TIMES BUT QUICK RATIO IMPROVED TO 0.63 TIMES FROM 0.62 TIMES IN 2004.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 15.65% FROM USD95,591,922 IN 2004 TO USD110,555,784 BUT NET PROFIT DROPPED BY 31.99% TO USD2,667,347 (2004: USD3,921,725).}

^{THIS COULD BE DUE TO LOWER GROSS MARGIN OF 22.11% IN 2005 (2004: 24.25%).}

^{HENCE, NET MARGIN FELL TO 2.41% (2004: 4.10%).}

^{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 17.29 TIMES}

^{(2004: 41.75 TIMES).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEM IS CLASSIFIED UNDER PRELIMINARY:}

^{-DEFERRED TAX ASSET - 2005: USD116,212 (2004: USD199,212)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITIES}

^{BANKERS GUARANTEES (UNSECURED) - 2005: USD538,472 (2004: USD46,053)}

BACKGROUND/OPERATION

^{THE SUBJECT WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 03/02/1998 AS A LIMITED PRIVATE COMPANY UNDER THE FORMER NAMESTYLE OF "KENDALL MEDICAL FAR EAST PTE LTD".}

^{SUBSEQUENTLY ON 28/07/1999, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "TYCO HEALTHCARE PTE LTD".}

^{AS AT 28/06/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 19,211,234 SHARES, OF A VALUE OF S$19,211,234.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) ACTIVITIES NOT ADEQUATELY DEFINED; MARKETING & DISTRIBUTION OF MEDICAL PRODUCTS & EQUIPMENT}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF THE MARKETING AND DISTRIBUTION OF MEDICAL PRODUCTS AND EQUIPMENT.}

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

^BACKGROUND

^ACTIVITIES:

^{* WHOLESALING OF MEDICAL EQUIPMENTS AND MEDICAL PRODUCTS}

^{* IMPORTER AND TRADING OF MEDICAL EQUIPMENT AND MEDICAL PRODUCTS}

^{BUSINESS SEGMENTS:}

^{* MEDICAL, SURGICAL, RESPIRATORY, IMAGING, PHARMACEUTICAL AND RETAIL PRODUCTS}

^{MEDICAL PRODUCTS:}

^{* WOUND CARE, INCONTINENT CARE, NURSING CARE, VASCULAR COMPRESSION, SHARPS/NEEDLES}

^{& SYRINGES, ELECTRODES.}

^BRAND(S):

^{* J.T. BAKER}

^{* KENDALL}

^{* MALLINCKRODT}

^{* US SURGICAL}

^{* VALLEYLAB}

^{* MOTHERMATES}

^{* PURITAN BENNETT}

^PURCHASES:

^{* IMPORTS (%): NOT AVAILABLE}

^{* TERMS OF IMPORT: 30 DAY TERMS, ETC}

^{* IMPORT COUNTRIES: UNITED STATES, ETC}

^MARKETS

^{* LOCAL (%): NOT AVAILABLE}

^{* TERMS SALES: 30 DAY TERMS, ETC}

^{* EXPORT(%): NOT AVAILABLE}

^{* TERMS OF EXPORT: 30 DAY TERMS, ETC}

^{* EXPORT COUNTRIES: ASIA PACIFIC REGION; BRUNEI, INDONESIA, WEST MALAYSIA (SELANGOR), ETC}

^{SPONSOR FOR:}

^{* NEPHRO ASIA 2006}

^AWARDS:

^{* BHQ AWARD (BUSINESS HEADQUARTERS AWARD BY SINGAPORE ECONOMIC DEVELOPMENT BOARD)}

^{SUBJECT IS A MEMBER OF FOLLOWING ENTITIES:}

^{* SINGAPORE MANUFACTURERS' FEDERATION (SMA)}

^{* AUSTRALIAN CHAMBER OF COMMERCE}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE AT THE TIME OF THIS REPORT.}

^{THE COMPANY IS A SUBSIDIARY OF TYCO GROUP S.A.R.L, INCORPORATED IN LUXEMBOURG. THE COMPANY'S ULTIMATE HOLDING COMPANY IS TYCO INTERNATIONAL LTD, INCORPORATED IN BERMUDA.}

^{NUMBER OF EMPLOYEES (30 SEPTEMBER)}

^{- COMPANY: 2005: NOT AVAILABLE (2004: 103; 2003: 127; 2002: 98)}

^{REGISTERED & BUSINESS ADDRESS:}

^{26 ANG MO KIO INDUSTRIAL PARK 2}

^#04-01

^{SINGAPORE 569507}

^{DATE OF CHANGE OF ADDRESS: 07/07/2000}

^{- OFFICE}

^{REPRESENTATIVE OFFICE IN MALAYSIA:}

^{SUITE A.17.1 MENARA ATLAS}

^{PLAZA PANTAI}

^{NO.5 JALAN 4/83A,}

^{OFF JALAN PANTAI BARU}

^{59200 KAULA LAMPUR}

^{PHONE: 603-2297-6000}

^{FAX: 603-2297-6100}

^{REPRESENTATIVE OFFICE IN PHILIPPINES:}

^{UNIT 24-E, 24TH FLOOR,}

^{CITY BANK TOWER, PASEO DE ROXAS}

^{MAKATI CITY,}

^PHILIPPINES

^{PHONE: 632-848-0206}

^{FAX: 632-848-0207}

^EMAIL:

^{walter.tarca@tycohealth.com.au}

^{ContactUs@tycohealth.com.sg}

^WEBSITE:

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

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

MANAGEMENT

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

^{1) TEO TECK CHONG EDMUND, A SINGAPORE PERMANENT RESIDENT}

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

^{2) LIM CHWEE LAN SERENE, A SINGAPOREAN}

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

^{3) WALTER TARCO, A SINGAPORE PERMANENT RESIDENT}

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

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