MIRA INFORM REPORT

Report Date :

04.07.2007

IDENTIFICATION DETAILS

Name :	KAWAMIN PACIFIC PTE LTD
Registered Office :	^43d Beach Road, #05-00, Evershine & Century Complex, Singapore – 189681
Country :	Singapore
Financials (as on) :	31.03.2006
Date of Incorporation :	^21/12/1993
Com. Reg. No.:	^199308442R
Legal Form :	^Pte Ltd
Line of Business :	Trading in Industrial Raw Materials

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

KAWAMIN PACIFIC PTE LTD

Line Of Business 

TRADING IN INDUSTRIAL RAW MATERIALS

Parent Company

ASIAMIN INVESTMENTS LIMITED

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY2006

CONSOLIDATED

Sales : US$49,892,409

Networth : US$ 1,936,545

Paid-Up Capital : US$ 1,047,407

Net result : US$ 208,386

Net Margin(%) : 0.42

Return on Equity(%) : 10.76

Leverage Ratio : 1.07 TIMES

COMPANY IDENTIFICATION

^{Subject Company : KAWAMIN PACIFIC PTE LTD}

^{Former Name : -}

^{Business Address : 43D BEACH ROAD}

^#05-00

^{EVERSHINE & CENTURY COMPLEX}

^{Town : SINGAPORE}

^{Postcode : 189681}

^{County : -}

^{Country : Singapore}

^{Telephone : 6226 1525}

^{Fax : 6226 2386}

^{ROC Number : 199308442R}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 21/12/1993}

^{Previous Legal Form : -}

^{Summary year : 31/03/2006}

^{Sales : 49,892,409}

^{Net Worth : 1,936,545}

^{Paid-Up Capital : 1,047,407}

^{Employees : -}

^{Net Result : 208,386}

^{Auditor : J K MEDORA & CO}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 21/12/1993}

PRINCIPAL(S)

^{HEMANT KUMAR HASMUKHRAI AMIN S6876555B Director}

DIRECTOR(S)

^{RACHNA AMIN S6876556J Director}

^{Appointed on : 31/03/1995}

^{Street : 53 CAIRNHILL ROAD}

^#33-03

^{CAIRNHILL PLAZA}

^{Town : SINGAPORE}

^{Postcode : 229664}

^{Country : Singapore}

^{TAKAFUMI KAWAMURA MN3903877 Director}

^{Appointed on : 01/03/1995}

^{Street : 48-19 3-CHOME}

^{SOSHIGAYA SETAGA}

^{Town : TOKYO}

^{Postcode : -}

^{Country : Japan}

^{SEET BENG CHOO JEANNE S1234059A Company Secretary}

^{Appointed on : 02/08/2003}

^{Street : 529 HOUGANG AVENUE 6}

^#07-263

^{Town : SINGAPORE}

^{Postcode : 530529}

^{Country : Singapore}

^{PEH POH CHIN S6840069D Company Secretary}

^{Appointed on : 02/08/2003}

^{Street : 198 BOON LAY DRIVE}

^#03-51

^{Town : SINGAPORE}

^{Postcode : 640198}

^{Country : Singapore}

^{HEMANT KUMAR HASMUKHRAI AMIN S6876555B Director}

^{Appointed on : 21/12/1993}

^{Street : 53 CAIRNHILL ROAD}

^#33-03

^{CAIRNHILL PLAZA}

^{Town : SINGAPORE}

^{Postcode : 229664}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{GUNVANTRAI M SHETH 002501942}

^{WONG LAI LENG S1176982I}

^{SARANGAPANY GUNASEKERAN S1245654I}

^{KOH NGIN JOO JULIE S2586980Z}

^{KAWAMURA ICHIRO 4570067}

^{RAMESH BABULAL BAHETI R087881}

ACTIVITY (IES)

^{TRADING COMPANIES Code: 22190}

^{METALS - BASE - DEALERS And BROKERS Code: 13960}

^{BASED ON ACRA'S RECORD AS AT 17/05/2007}

^{1) OTHER SERVICE ACTIVITIES; TRADING IN RAW MATERIALS}

CHARGES

^{Date : 29/07/1995}

^{Comments : CHARGE NO : 9504686 (DISCHARGED)}

^{SECURED : 0.0000 ALL MONIES OWING}

^{CHARGEE(S) : STANDARD CHARTERED BANK}

^{Date : 30/08/1994}

^{Comments : CHARGE NO : 9404986 (DISCHARGED)}

^{SECURED : 0.0000 ALL MONIES OWING}

^{CHARGEE(S) : STATE BANK OF INDIA}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{STANDARD CHARTERED BANK}

^{CITIBANK N.A.}

^{BANGKOK BANK PUBLIC COMPANY LIMITED}

^{OVERSEA-CHINESE BANKING CORPORATION LIMITED}

^{RZB AUSTRIA BANK}

SHAREHOLDERS(S)

^{ASIAMIN INVESTMENTS LIMITED 1,850,000 Company}

^{Street : PORTCULLIS TRUSTNET CHAMBERS}

^{P O BOX 3444, ROAD TOWN}

^{Town : TORTOLA}

^{Postcode : -}

^{Country : Virgin Islands (British)}

FORMER SHAREHOLDER(S)

^{DANFIA ENTERPRISE LTD 75,000}

^{EDEN ENTERPRISE LTD 750,000}

^{DORRANCE INTERNATIONAL LTD 149,998}

^{GUNVANTRAI M SHETH 17,500}

^{SARANGAPANY GUNASEKERAN 12,500}

^{HEMANT KUMAR HASMUKHRAI AMIN 1}

^{SHETH DR H 7,500}

^{EMMERLING LTD H K 225,000}

^{NARAYAN MURALI 12,500}

^{DANFIA HOLDINGS LTD 500,000}

^{EMMERLING FAR EAST LIMITED 750,000}

^{ASIAMIN LTD 1,850,000}

HOLDING COMPANY

^{ASIAMIN INVESTMENTS LIMITED UF46065C % : 100}

SUBSIDIARY (IES)

^{KAWAMIN SHIPPING PTE. LTD. Singapore}

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}

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

^{Date Account Lodged: 30/08/2006}

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

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS ---}

^{Preliminary Exp 1 1}

^{Tangible Fixed Assets: 12,327 10,989}

^{Total Fixed Assets: 12,328 10,990}

^{Inventories: 22,500 43,184}

^{Receivables: 3,148,934 3,188,895}

^{Cash, Banks, Securities: 458,794 381,888}

^{Other current assets: 362,192 375,007}

^{Total Current Assets: 3,992,420 3,988,974}

^{TOTAL ASSETS: 4,004,748 3,999,964}

^{--- LIABILITIES ---}

^{Equity capital: 1,047,407 1,047,407}

^{Profit & loss Account: 889,138 680,752}

^{Total Equity: 1,936,545 1,728,159}

^{L/T deferred taxes: 1,700 1,300}

^{Total L/T Liabilities: 1,700 1,300}

^{Trade Creditors: 130,517 593,456}

^{Advanced payments: 115,144}

^{Due to Bank: 1,851,011 1,354,747}

^{Provisions: 38,055 1,200}

^{Other Short term Liab.: 30,868 191,706}

^{Prepay. & Def. charges: 16,052 14,252}

^{Total short term Liab.: 2,066,503 2,270,505}

^{TOTAL LIABILITIES: 2,068,203 2,271,805}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 49,892,409 46,947,426}

^{NET RESULT BEFORE TAX: 246,841 25,936}

^{Tax : 38,455 1,500}

^{Net income/loss year: 208,386 24,436}

^{Interest Paid: 96,088 72,400}

^{Depreciation: 6,393 5,740}

^{Directors Emoluments: 193,290 95,467}

^{Wages and Salaries: 244,895 224,493}

^{Financial Income: 130,313 22,348}

RATIOS

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

^{Net Margin(%): 0.42 0.05}

^{Return on Equity(%): 10.76 1.41}

^{Return on Assets(%): 5.20 0.61}

^{Net Working capital: 1925917.00 1718469.00}

^{Cash Ratio: 0.22 0.17}

^{Quick Ratio: 1.75 1.57}

^{Current ratio: 1.93 1.76}

^{Receivables Turnover: 22.72 24.45}

^{Leverage Ratio: 1.07 1.31}

^{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 GROUP WAS DEEMED TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH TOTAL EQUITY IMPROVING BY 12.06% AMOUNTING TO USD1,936,545 (2005: USD1,728,159). THIS WAS CONTRIBUTED BY HIGHER RETAINED EARNINGS BROUGHT FORWARD OF USD889,138 (2005: USD680,752).}

^LEVERAGE:

^{THE LEVERAGE RATIO HAD IMPROVED TO 1.07 TIMES (2005: 1.31 TIMES), INDICATING THAT THE GROUP'S TOTAL LIABILITIES WERE LESS SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS DECREASED BY 78.01%, AMOUNTING TO USD130,517 (2005: USD593,456). AMOUNT DUE TO BANKS OF USD1,851,011 (2005: USD1,354,747) COMPRISED OF:}

^{* SECURED OF USD20,005 (2005: NIL)}

^{* UNSECURED OF USD1,831,006 (2005: USD1,354,747)}

^{THE ABOVE BANKING FACILITIES ARE SECURED BY JOINT AND SEVERAL GUARANTEES FOR USD9.2 MILLION BY TWO OF THE DIRECTORS.}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE GROUP WAS FAIRLY HEALTHY. BOTH THE QUICK AND CURRENT RATIOS WERE SUFFICIENT AT 1.75 TIMES (2005: 1.57 TIMES) AND 1.93 TIMES (2005: 1.76 TIMES) RESPECTIVELY.}

^{THIS WAS IN TANDEM WITH THE NET WORKING CAPITAL, WHICH REGISTERED HIGHER AT USD1,925,917 (2005: USD1,718,469).}

^{PROFITABILITY:}

^{REVENUE FOR FY2006 ROSE BY 6.27%, TOTALLING USD49,892,409 (2005: USD46,947,426). NET INCOME WENT UP NOTABLY BY 7.53 TIMES AS WELL, ACCOUNTING FOR USD208,386 (2005: USD24,436).}

^{THUS, NET MARGIN STOOD HIGHER AT 0.42% (2005: 0.05%).}

^{DEBT SERVICING:}

^{DEBT SERVICING MIGHT NOT BE ANTICIPATED IN VIEW OF THE SUFFICIENT LIQUIDITY, IMPROVED REVENUES AND NET INCOMES, AND IF TRADE RECEIVABLES WERE FORTHCOMING.}

^{AVERAGE COLLECTION PERIOD HAD SHORTENED TO 23 DAYS (2005: 24 DAYS).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITIES/BANKER'S GUARANTEES (UNSECURED)}

^{* BILLS DISCOUNTED OF USD615,773 (2005: USD404,034)}

^{* GUARANTEES OF USD50,000 (2005: USD50,000)}

^{THE BANK GUARANTEES ARE GIVEN TO A SUPPLIER.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 21/12/1993 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "KAWAMIN PACIFIC PTE LTD".}

^{AS AT 17/05/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 1,850,000 SHARES OF A VALUE OF S$1,850,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) OTHER SERVICE ACTIVITIES; TRADING IN RAW MATERIALS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITY OF THE COMPANY IS THAT IF TRADING IN INDUSTRIAL RAW MATERIALS. THE PRINCIPAL ACTIVITY OF THE SUBSIDIARY IS THAT OF PROVIDING SHIPPING FREIGHT SERVICES.}

^{THE ULTIMATE AND IMMEDIATE HOLDING COMPANY IS ASIAMIN LIMITED, A COMPANY INCORPORATED IN HONG KONG.}

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

^{SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: TRADING COMPANIES.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:}

^{* GLOBAL PROCUREMENT AND SUPPLIER OF INDUSTRIAL RAW MATERIALS TO ASIAN MANUFACTURERS}

^PRODUCTS:

^{* BULK COMMODITIES}

^{- CEMENT CLINKER}

^{- SLAG - GRANULATED BLAST FURNACE SLAG}

^{- GYPSUM}

^{- COAL}

^{- FERTILIZERS}

^{* FERRO ALLOYS}

^{- FERRO SILICON}

^{- FERRO SILICON MANGANESE}

^{- FERRO CHROME}

^{- FERRO MANGANESE}

^{- FERRO MOLYBDENUM}

^{- FERRO PHOSPHOROUS}

^{* MINERAL ORES}

^{- IRON ORE}

^{- FLUORSPAR}

^{- FUSED MAGNESITE}

^{- DEAD BURNT MAGNESITE}

^{- LEAD / ZINC CONC.}

^{- MN ORE / CR ORE & CONC.}

^{* NON FERROUS METALS}

^{- BASE METALS}

^{- MINOR METALS}

^{- SEMIS}

^{- METAL ALLOYS}

^{- DROSS / SLAGS / RESIDUES}

^{* STEEL}

^{- FLAT PRODUCTS}

^{- LONG PRODUCTS}

^{- TUBES AND PIPES}

^{- STRUCTURAL STEEL}

^{- STAINLESS STEEL}

^{* SCRAP}

^{- ALUMINIUM SCRAP}

^{- BRASS}

^{- COPPER}

^{- LEAD}

^{- ZINC}

^{IMPORT COUNTRIES:}

^{* JAPAN, UNITED KINDGOM, INDIA & ASEAN REGION}

^{EXPORT COUNTRIES:}

^{* ASIA PACIFIC REGION (VIETNAM, ETC)}

^{COUNTRIES TRADED WITH:}

^{* BANGLADESH}

^{* INDONESIA}

^{* MYANMAR}

^{TERMS OF TRADE:}

^{* BUYER SHALL ESTABLISH IN FAVOUR OF SELLER (SUBJECT) AN IRREVOCABLE, CONFIRMED, UNRESTRICTED AND WITHOUT RECOURSE LETTER OF CREDIT COVERING FULL AMOUNT OF THIS CONTRACT, NEGOTIABLE ON SIGHT DRAFT THROUGH A FIRST CLASS INTERNATIONAL BANK, WHICH SHALL BE RECEIVED BY SELLER IMMEDIATELY AFTER CONCLUSION OF THIS CONTRACT. THE LETTER OF CREDIT SHALL BE VALID AND EFFECTIVE FOR AT LEAST TWENTY-ONE (21) DAYS UNLESS OTHERWISE SPECIFIED AFTER THE LAST DATE OF SHIPMENT FOR NEGOTIATION OF THE RELATIVE DRAFT.}

^{SUBJECT IS A MEMBER OF FOLLOWING ENTITY:}

^{* SINGAPORE INDIAN CHAMBERS OF COMMERCE & INDUSTRY}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE ON 23/05/2007.}

^{REGISTERED & BUSINESS ADDRESSES:}

^{43D BEACH ROAD}

^#05-00

^{EVERSHINE & CENTURY COMPLEX}

^{SINGAPORE 189681}

^{DATE OF CHANGE OF ADDRESS: 13/01/2007}

^WEBSITE:

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

^E-MAIL:

^{* mail@kawamin.com}

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.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMY GREW BY 6.1% IN QUARTER 1 OF 2007 AFTER A 6.6% GROWTH IN QUARTER 4 OF 2006. THE GROWTH MOMENTUM EASED SLIGHTLY TO 7.6% IN 1Q 2007, COMPARED WITH 7.9% A QUARTER EARLIER. GROWTH IN QUARTER 1 WAS LED BY THE FINANCIAL SERVICES AND CONSTRUCTION SECTORS. THE MANUFACTURING SECTOR CONTINUED TO EXPERIENCE A MODERATION IN GROWTH.

THE FINANCIAL SERVICES SECTOR SIGNIFICANTLY INCREASED BY 13% IN 1Q 2007 ON THE HEELS OF THE 11% GROWTH A QUARTER AGO. THE STRONG PERFORMANCE WAS ACROSS ALL MAJOR FINANCIAL SEGMENTS, PARTICULARLY IN THE CAPITAL AND MONEY MARKETS. FUND MANAGEMENT ACTIVITIES REMAINED BOUYANT, IN LINE WITH THE CONTINUED STRENGTH IN ECONOMIC CLIMATE. SIMILARLY, BANKS SAW STRONG GROWTH, BOUYED BY SUSTAINED RESILIENCE IN THE ASIA DOLLAR MARKET AS WELL AS A STEADY INCREASE IN DOMESTIC LENDING ACTIVITY.

THE CONSTRUCTION SECTOR GREW BY 9.7% IN 1Q 2007, ITS STRONGEST GROWTH IN 9 YEARS. CERTIFIED PAYMENTS INCREASE BY 9.5% IN 1Q 2007, SUPPORTED BY STRONG GROWTH IN THE PRIVATE RESIDENTIAL, COMMERCIAL AND INDUSTRIAL SEGMENTS AS WELL AS PUBLIC RESIDENTIAL SEGMENT. HOWEVER, CONTRACTS AWARDED FELL BY 11% IN 1Q 2007, DUE MAINLY TO THE DROP IN THE PRIVATE COMMERCIAL AND PUBLIC INSTITUTIONAL SEGMENTS.

MANUFACTURING SECTOR INCREASED BY 4.3% IN 1Q 2007, DOWN FROM 7.7% IN THE PREVIOUS QUARTER. BOTH BIOMEDICAL MANUFACTURING (-5.0%) AND PRECISION ENGINEERING (-0.7%) CLUSTERS SAW LOWER PRODUCTION DURING THE QUARTER. THE ELECTRONICS CLUSTER, HOWEVER, RECOVERED FROM A 4.1% CONTRACTION IN 4Q 2006 TO REGISTER AN INCREASE OF 2.6% IN 1Q 2007. THE TRANSPORT ENGINEERING CLUSTER CONTINUED TO EXPAND STRONGLY AT 23%, FOLLOWING A 25% INCREASE IN 4Q 2006.

THE WHOLESALE AND RETAIL TRADE SECTOR EXPANDED 6.7% IN 1Q 2007 AFTER A 6.9 GROWTH IN 4Q 2006. RETAIL SALES GROWTH EASED FROM 7.9% IN THE PREVIOUS QUARTER TO 6.1% IN 1Q 2007, MAINLY DUE TO A DECELERATION IN MOTOR VEHICLES SALES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.9%, UP FROM 4.2% IN 4Q 2006. IN THE WHOLESALE SEGMENT, GROWTH OF NON-OIL RE-EXPORTS REMAINED FIRM AT 5.9%, SLOWER THAN 6.3% IN 4Q 2006.

THE TRANSPORT AND STORAGE SECTOR GREW 4.4% IN 1Q 2007, UP FROM 4.0% A QUARTER EARLIER. THE AIR SEGMENT SAW A SLOWDOWN DUE TO A MODERATION IN AIR PASSENGER TRAFFIC GROWTH AND A DECLINE IN AIR CARGO. STRONGER ACTIVITY WAS RECORDED IN THE SEA SEGMENT ON THE BACK OF BETTER PERFORMANCE IN SEA CARGO HANDLED AND CONTAINER THROUGHPUT.

THE HOTELS AND RESTAURANTS SECTOR REGISTERED A SLOWER GROWTH OF 4.7% IN 1Q 2007, DOWN FROM 6.1% 4Q 2006. VISITOR ARRIVALS GREW AT A MORE MODEST PACE OF 4.1% COMPARED TO 8.4% IN THE PREVIOUS QUARTER. THE INCREASE IN HOTEL ROOM REVENUE MODERATED FROM THE 21% GAIN IN 4Q 2006 TO 14% IN 1Q 2007. HOWEVER, THE AVERAGE OCCUPANCY RATE OF HOTELS REMAINED HIGH AT 87%, A 4.3% POINTS INCREASE OVER THE CORRESPONDING PERIOD LAST YEAR.

THE INFORMATION AND COMMUNICATIONS SECTOR GREW 6.6% IN 1Q 2007, UP FROM 6.0% IN THE PREVIOUS QUARTER. WHILE THE IT SEGMENT SAW SOME MODERATION IN ACTIVITIES, THE TELECOMMUNICATIONS SEGMENT PERFORMED BETTER. INTERNATIONAL TELEPHONE CALL DURATION WENT UP SHARPLY BY 19%, UP FROM 11% IN 4Q 2006. GROWTH IN THE NUMBER OF MOBILE SUBSCRIBERS AND BROADBAND SUBSCRIBERS ALSO REMAINED STRONG DURING THE QUARTER.

BUSINESS SERVICES SECTOR EXPANDED BY 6.6% IN 1Q 2007, BETTER THAN THE 5.4% POSTED IN 4Q 2006. ROBUST PERFORMANCE WAS SEEN IN THE REAL ESTATE SEGMENT ON THE BACK OF CONTINUED STRENGTH IN THE LUXURY PROPERTY MARKET. THE SECTOR WAS ALSO WELL SUPPORTED BY THE OTHER SEGMENTS, PARTICULARLY BUSINESS REPRESENTATIVE OFFICES, AND BUSINESS & MANAGEMENT CONSULTANCY ACTIVITIES.

OUTLOOK

THE ECONOMIC OUTLOOK IS GENERALLY POSITIVE BUT SOME DOWNSIDE RISKS REMAIN. THESE INCLUDE A SLOWDOWN IN THE US ECONOMY, VULNERABILITY OF OIL PRICES TO SUPPLY SHOCKS AND A DISORDERLY UNWINDING OF GLOBAL UNBALANCES. BARRING THESE UNCERTAINTIES, ECONOMIC GROWTH IS EXPECTED TO REMAIN HEALTHY IN 2007.

BUSINESS SENTIMENTS ARE GENERALLY POSITIVE IN THE FINANCIAL SERVICES INDUSTRY. BANKS AND FINANCE COMPANIES, FUND MANAGEMENT FIRMS AND INSURANCE COMPANIES EXPECT AN IMPROVEMENT IN THE BUSINESS CLIMATE IN THE COMING MONTHS.

AN OVERALL NET WEIGHTED BALANCE OF 61% OF FIRMS IN THE REAL ESTATE INDUSTRY EXPECTS BETTER BUSINESS CONDITIONS FOR THE NEXT 6 MONTHS. WITHIN THE INDUSTRY, REAL ESTATE DEVELOPERS AND AGENTS FORESEE BRISK BUSINESS ACTIVITY AHEAD.

MANUFACTURING SECTORS ARE MORE OPTIMISTIC IN THE NEXT 6 MONTHS COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN 7% RECORDED A QUARTER AGO.

WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD AND BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

FIRMS IN THE RETAIL TRADE FORESEE BUSINESS TO BE LESS BRISK. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

WITHIN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 18% OF FIRMS FORECASTS IMPROVED BUSINESS PROSPECTS FOR THE NEXT 6 MONTHS. IN PARTICULAR, FIRMS IN THE WATER TRANSPORT AND SUPPORTING SERVICES EXPECT HIGHER LEVEL OF BUSINESS ACTIVITY.

HOTELIERS PROJECT A FAVOURABLE BUSINESS OUTLOOK, WHICH IS IN TANDEM WITH THE POSITIVE SENTIMENTS IN THE TOURISM MARKET. FOR THE CATERING TRADE INDUSTRY, BUSINESS OUTLOOK IN THE COMING MONTHS REMAINS THE SAME.

FIRMS IN THE INFORMATION AND COMMUNICATION INDUSTRY ANTICIPATES A HIGHER LEVEL OF BUSINESS ACTIVITY, WITH A POSITIVE NET WEIGHTED BALANCE OF 12%.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSES POSITIVE SENTIMENTS. THESE INCLUDE FIRM ENGAGED IN RENTING OF CONSTRUCTION & INDUSTRIAL MACHINERY, ARCHITECTURAL & ENGINEERING, SPECIALISED DESIGN AND LABOUR RECRUITMENT SERVICES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

CHANNELNEWS ASIA

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