MIRA INFORM REPORT

Report Date :

26.07.2007

IDENTIFICATION DETAILS

Name :	DOOSAN ELECTRO-MATERIALS SINGAPORE PTE LTD
Registered Office :	^10 Toh Guan Road, #04^-^01b, Tt International Tradepark, Singapore – 608838
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^16/05/1997
Com. Reg. No.:	^199703304E
Legal Form :	^Pte Ltd
Line of Business :	Suppliers of Raw Materials for Printed Circuit Board Industry

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

DOOSAN ELECTRO-MATERIALS SINGAPORE PTE LTD

Line Of Business 

SUPPLIERS OF RAW MATERIALS FOR PRINTED CIRCUIT BOARD INDUSTRY

Parent Company

DOOSAN CORPORATION ELECTRO-MATERIALS BG

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

COMPANY

Sales : S$53,386,172

Networth : S$797,680

Paid-Up Capital : S$427,142

Net result : S$-696,381

Net Margin(%) : -1.30

Return on Equity(%) : -87.30

Leverage Ratio : 47.22

COMPANY IDENTIFICATION

^{Subject Company : DOOSAN ELECTRO-MATERIALS SINGAPORE PTE LTD}

^{Former Name : -}

^{Business Address: 10 TOH GUAN ROAD}

^#04-01B

^{TT INTERNATIONAL TRADEPARK}

^{Town: SINGAPORE}

^{Postcode: 608838}

^{County: -}

^{Country: Singapore}

^{Telephone: 6862 6327}

^{Fax: 6862 6329}

^{ROC Number: 199703304E}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 16/05/1997}

^{Previous Legal Form: -}

^{Summary year : 31/12/2005}

^{Sales: 53,386,172}

^{Networth : 797,680}

^{Capital: 500,000}

^{Paid-Up Capital: 427,142}

^{Employees: 6}

^{Net result : -696,381}

^{Share value: 1}

^{AUDITOR: WONG,LEE & ASSOCIATES}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 16/05/1997}

PRINCIPAL(S)

^{JEONG KWANG YONG F2450099M Managing Director}

DIRECTOR(S)

^{JEONG KWANG YONG F2450099M Director}

^{Appointed on : 16/05/1997}

^{Street : 8 DOVER RISE}

^#10-03

^{HERITAGE VIEW}

^{Town: SINGAPORE}

^{Postcode: 138679}

^{Country: Singapore}

^{JEONG KWANG YONG F2450099M Managing Director}

^{Appointed on : 18/06/1997}

^{Street : 8 DOVER RISE}

^#10-03

^{HERITAGE VIEW}

^{Town: SINGAPORE}

^{Postcode: 138679}

^{Country: Singapore}

^{WONG KIAH PENG S0091677C Company Secretary}

^{Appointed on : 31/07/2002}

^{Street : 205 BALESTIER ROAD}

^#09-02

^{RUBY PLAZA}

^{Town: SINGAPORE}

^{Postcode: 329682}

^{Country: Singapore}

^{KIM DONG GOO G5644308N Director}

^{Appointed on : 15/11/2005}

^{Street : 89 HILLVIEW AVENUE}

^#08-13

^{THE PETALS}

^{Town: SINGAPORE}

^{Postcode: 669624}

^{Country: Singapore}

^{PARK JEONG WON S2729110D Director}

^{Appointed on : 08/09/2004}

^{Street : 8 DOVER RISE}

^#10-03

^{HERITAGE VIEW}

^{Town: SINGAPORE}

^{Postcode: 138679}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{HONG HYEON JU SSGE96325}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD AS AT 20/07/2007}

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

CHARGES

^{Date: 02/08/2001}

^{Comments : CHARGE NO: 200103646}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): THE DEVELOPMENT BANK OF SINGAPORE LIMITED}

^{Date: 01/08/2001}

^{Comments : CHARGE NO: 200103613}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): THE DEVELOPMENT BANK OF SINGAPORE LIMITED}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{DBS BANK LTD.}

SHAREHOLDERS(S)

^{HONG HYEON JU 1 Private Person}

^{Street : 14 JALAN LEMPENG}

^08-01

^{Town: SINGAPORE}

^{Postcode: 128799}

^{Country: Singapore}

^{JEONG KWANG YONG 1 Private Person}

^{Street : 8 DOVER RISE}

^#10-03

^{HERITAGE VIEW}

^{Town: SINGAPORE}

^{Postcode: 138679}

^{Country: Singapore}

^{DOOSAN CORPORATION 427,142 Company}

^{Street : DOOSAN TOWER 26F}

^{18-12 ULCHI-RO 6-KA CHUNG-KU}

^{Town: SEOUL}

^{Postcode: 100-730}

^{Country: Korea, Republic of}

HOLDING COMPANY

^{DOOSAN CORPORATION UF20758H % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : LACKING

Payments : REGULAR

Trend : LEVEL

Financial Situation: AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Audit Qualification: "MILD" UNCERTAINTIES "MILD" UNCERTAINTIES}

^{Date Account Lodged: 09/06/2006}

^{Balance Sheet Date: 31/12/2005 31/12/2004}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 2,707,245 2,847,721}

^{Total Fixed Assets: 2,707,245 2,847,721}

^{Inventories: 13,156,960 5,558,627}

^{Receivables: 18,669,993 12,039,947}

^{Cash,Banks, Securitis: 3,880,025 3,465,841}

^{Other current assets: 49,971 44,519}

^{Total Current Assets: 35,756,949 21,108,934}

^{TOTAL ASSETS: 38,464,194 23,956,655}

^{--- LIABILITIES}

^{Equity capital: 427,142 427,142}

^{Profit & loss Account: 370,538 1,066,919}

^{TOTAL EQUITY: 797,680 1,494,061}

^{L/T deffered taxes: - 7,575}

^{Total L/T Liabilities: - 7,575}

^{Trade Creditors: 34,463,435 21,586,099}

^{Prepay. & Def. charges: 199,676 461,584}

^{Due to Bank: 3,003,403 360,006}

^{Provisions: - 47,330}

^{Total short term Liab.: 37,666,514 22,455,019}

^{TOTAL LIABILITIES: 37,666,514 22,462,594}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 53,386,172 48,885,917}

^{NET RESULT BEFORE TAX: -703,956 200,484}

^{Tax : -7,575 78,660}

^{Net income/loss year: -696,381 121,824}

^{Interest Paid: 168,317 17,907}

^{Depreciation: 147,347 94,734}

^{Directors Emoluments: 543,329 721,515}

^{Purchases,Sces & Other Goods: 51,178,087 46,414,219}

^{Wages and Salaries: 962,619 1,118,981}

^{Financial Income: 61,506 20,207}

RATIOS

^{31/12/2005 31/12/2004}

^{Turnover per employee: 8897695.33 8147652.83}

^{Net result / Turnover(%): -0.01 0.00}

^{Stock / Turnover(%): 0.25 0.11}

^{Net Margin(%): -1.30 0.25}

^{Return on Equity(%): -87.30 8.15}

^{Return on Assets(%): -1.81 0.51}

^{Net Working capital: -1909565.00 -1346085.00}

^{Cash Ratio: 0.10 0.15}

^{Quick Ratio: 0.60 0.69}

^{Current ratio: 0.95 0.94}

^{Receivables Turnover: 125.90 88.66}

^{Leverage Ratio: 47.22 15.03}

^{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

^{AUDITORS' REPORT:}

^{AS AT THE FINANCIAL YEAR END, THE COMPANY HAS NOT ASSESSED WHETHER THERE IS ANY POTENTIAL IMPAIRMENT LOSS ON ITS LEASEHOLD FACTORY BUILDING AS REQUIRED BY SINGAPORE FINANCIAL REPORTING STANDARD NO. 36 - IMPAIRMENT OF ASSETS. AS SUCH, DUE TO THE LACK OF RECENT VALUATION REPORTS, WE ARE UNABLE TO EXPRESS AN OPINION ON WHETHER IMPAIRMENT LOSS ON THE COMPANY'S LEASEHOLD FACTORY BUILDING EXISTS AS AT YEAR END.}

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH DECLINING BY 46.61% FROM S$1,494,061 IN FY 2004 TO S$797,680 IN FY 2005. THIS WAS DUE TO LOWER ACCUMULATED PROFIT OF S$370,538 (2004: S$1,066,919); A DECLINE OF 65.27% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 91.49% (2004: 96.13%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$34,463,435 (2004: S$21,586,099). THE BREAKDOWN IS AS FOLLOWS:}

^{-HOLDING COMPANY - 2005: S$34,151,560 (2004: S$21,375,516)}

^{-RELATED COMPANY - 2005: - (2004: S$60,196)}

^{-THIRD PARTIES - 2005: S$311,875 (2004: S$150,387)}

^{AMOUNT DUE TO BANKS OF S$3,003,403 (2004: S$360,006) CONSISTED OF:}

^{-SHORT-TERM BANK BORROWINGS - 2005: S$3,003,403 (2004: S$360,006)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 15.03 TIMES TO 47.22 TIMES AS A RESULT OF A RISE IN TOTAL LIABILITIES AND A DECLINE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE NET WORKING CAPITAL DEFICIT AND LOW LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 0.95 TIMES, UP FROM 0.94 TIMES AND QUICK RATIO FELL TO 0.60 TIMES FROM 0.69 TIMES IN FY 2004.}

^{NET WORKING CAPITAL DEFICIT ROSE BY 41.86% FROM S$1,346,085 IN FY 2004 TO S$1,909,565.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-FIXED DEPOSIT (PLEDGED) - 2005: S$1,163,960 (2004: S$1,143,800)}

^{-CASH ON HAND - 2005: S$4,747 (2004: S$7,165)}

^{-CURRENT ACCOUNTS WITH BANKS - 2005: S$2,711,318 (2004: S$2,314,876)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 9.21% FROM S$48,885,917 IN FY 2004 TO S$53,386,172 BUT NET PROFIT DROPPED BY 6.72% TO S$-696,381 (2004: S$121,824). THIS COULD BE DUE TO LOWER GROSS MARGIN OF 4.14% IN FY 2005 (2004: 5.06%). HENCE, NET MARGIN FELL TO -1.30% (2004: 0.25%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IT IS NOTED THAT THE SUBJECT HAS NET LOSS AND LOW LIQUIDITY WHICH NEEDS CAUTION.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{SHORT-TERM BANK BORROWINGS}

^{THE SHORT-TERM BANK BORROWINGS ARE DENOMINATED IN US DOLLARS AND WERE SECURED BY THE PLEDGE OF FIXED DEPOSIT BELONGING TO THE COMPANY.}

^{SHORT-TERM BANK BORROWINGS AT THE BALANCE SHEET DATE HAVE AVERAGE MATURITIES OF FOUR MONTHS (2004: FOUR MONTHS) FROM THE END OF THE FINANCIAL YEAR WITH THE FOLLOWING WEIGHTED AVERAGE EFFECTIVE INTEREST RATES:}

^{US DOLLAR - 2005: 7.0%-7.6% (2004: 4.5%)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 16/05/1997 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "DOOSAN ELECTRO-MATERIALS SINGAPORE PTE LTD".}

^{AS AT 20/07/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 427,142 SHARES OF A VALUE OF S$427,142.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF GENERAL IMPORTING AND EXPORTING OF ELECTRONIC PRODUCTS.}

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

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* SUPPLIERS OF RAW MATERIALS FOR PRINTED CIRCUIT BOARD INDUSTRY}

^{PRODUCTS DEALINGS:}

^{* COPPER-CLAD LAMINATE}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 25/07/2007, THE FOLLOWING WAS GATHERED:}

^{IMPORT COUNTRIES:}

^{* KOREA}

^{EXPORT COUNTRIES:}

^{* SOUTH EAST ASIA}

^{THE SUBJECT MAINLY EXPORTS AND DOES SELL LOCALLY.}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2007: 6}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 25/07/2007.}

^{THE COMPANY IS A WHOLLY OWNED SUBSIDIARY OF DOOSAN CORPORATION ELECTRO-MATERIALS BG, INCORPORATED IN SOUTH KOREA, WHICH IS ALSO THE COMPANY'S ULTIMATE HOLDING COMPANY.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: NOT AVAILABLE)}

^{* GROUP - 2005: - (2004: -)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{10 TOH GUAN ROAD}

^{#04-01B TT INTERNATIONAL TRADEPARK}

^{SINGAPORE 608838}

^{- DATE OF CHANGE OF ADDRESS: 30/06/1999}

^{YOUR PROVIDED ADDRESS:}

^{10 GUAN ROAD}

^{#04-01 INTERNATIONAL TRADE}

^SINGAPORE

^{- INCORRECT}

^WEBSITE:

^{http://www.doosan.co.kr}

^EMAIL:

^-

MANAGEMENT

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

^{1) JEONG KWANG YONG, A SOUTH KOREAN}

^{- BASED IN SINGAPORE.}

^{2) KIM DONG GOO, A SOUTH KOREAN}

^{- BASED IN SINGAPORE.}

^{3) PARK JEONG WON, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIP 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