MIRA INFORM REPORT

Report Date :

11.06.2007

IDENTIFICATION DETAILS

Name :	FUJINON SINGAPORE PTE. LTD.
Registered Office :	^211 Henderson Road, #10-04^, Henderson Industrial Park, Singapore^– 159552
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^19/02/1991
Com. Reg. No.:	^199100746E
Legal Form :	^Pte Ltd
Line of Business :	Importers, Exporters and Services of Optical and Medical Precision Products, Photographic Equipment and Supplies.

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 :	Exists

Subject Company

FUJINON SINGAPORE PTE. LTD.

Line Of Business 

IMPORTERS, EXPORTERS AND SERVICES OF OPTICAL AND MEDICAL PRECISION PRODUCTS, PHOTOGRAPHIC EQUIPMENT AND SUPPLIES, OPTICAL PRECISION MEASURING PRODUCTS AND RELATED ACCESSORIES

Parent Company

FUJINON CORPORATION

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

COMPANY

Sales : US$13,107,104

Networth : US$1,800,641

Paid-Up Capital : US$843,351

Net result : US$ 471,604

Net Margin(%) : 3.60

Return on Equity(%) : 26.19

Leverage Ratio : 3.02

COMPANY IDENTIFICATION

^{Subject Company : FUJINON SINGAPORE PTE.LTD.}

^{Former Name : FUJI KOKI SINGAPORE PTE LTD}

^{Business Address: 211 HENDERSON ROAD}

^#10-04

^{HENDERSON INDUSTRIAL PARK}

^{Town: SINGAPORE}

^{Postcode: 159552}

^{County: -}

^{Country: Singapore}

^{Telephone: 6276 4988}

^{Fax: 6276 6911}

^{ROC Number: 199100746E}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{FUJI KOKI SINGAPORE PTE LTD}

^{DATE OF CHANGE OF NAME: 01/10/2004}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 19/02/1991}

^{Previous Legal Form: -}

^{Summary year : 31/12/2006}

^{Sales: 13,107,104}

^{Networth : 1,800,641}

^{Capital: -}

^{Paid-Up Capital: 843,351}

^{Employees: 20}

^{Net result : 471,604}

^{Share value: -}

^{AUDITOR : ERNST & YOUNG}

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

^{NO. OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 1,250,000 SGD 1,250,000.00}

^{PAID-UP ORDINARY - SGD 1,250,000.00}

REFERENCES

^{Litigation: Yes}

^{Company status : TRADING}

^{Started : 19/02/1991}

PRINCIPAL(S)

^{MASAKI YAMADA G5749042Q Managing Director}

DIRECTOR(S)

^{TSUJITA AKIRA TF1579488 Director}

^{Appointed on : 30/06/2003}

^{Street : 3-45-8 NAKANO, NAKANO-KU}

^{Town: TOKYO}

^{Postcode: 164-0001}

^{Country: Japan}

^{HIGUCHI TAKESHI MR7028224 Director}

^{Appointed on : 30/06/2004}

^{Street : 9-16-707 HIGASHINAKA-CHO,}

^{URAWA-KU SAITAMA-CITY}

^{Town: SAITAMA}

^{Postcode: 330-0056}

^{Country: Japan}

^{MASAKI YAMADA G5749042Q Managing Director}

^{Appointed on : 08/06/2004}

^{Street : 12 ORANGE GROVE ROAD}

^#04-03

^{Town: SINGAPORE}

^{Postcode: 258353}

^{Country: Singapore}

^{MASAKI YAMADA G5749042Q Director}

^{Appointed on : 08/06/2004}

^{Street : 12 ORANGE GROVE ROAD}

^#04-03

^{Town: SINGAPORE}

^{Postcode: 258353}

^{Country: Singapore}

^{WONG CHEE MENG LAWRENCE S1824079C Company Secretary}

^{Appointed on : 18/12/2006}

^{Street : 73 CAVENAGH ROAD}

^#05-376

^{CAVENAGH GARDEN}

^{Town: SINGAPORE}

^{Postcode: 229624}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{TAN KENG IN MARINA S1296939B}

^{TAN SAN-JU S1495769C}

^{NISHIYAMA KATSUYA S2636934G}

^{MATSUMOTO KEN K1229734}

^{MINOSHIMA HIROAKI L7677528}

^{MASAMICHI KUMAZAWA TZ6032402}

^{YASUO HONDA TE3896054}

^{SUSUMU YAMADA MP6047797}

^{TAKESHI SUMIYA G5527947R}

^{KOICHIRO HASHIMOTO TF7523399}

^{YEO POH NOI CAROLINE S1340579D}

^{MUNEYUKI MASAYUKI TF0789670}

ACTIVITY(IES)

^{OPTICAL GOODS Code:15550}

^{IMPORTERS And EXPORTERS Code:11760}

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

^{1) WHOLESALE OF OPTICAL AND PHOTOGRAPHIC EQUIPMENT AND SUPPLIES}

^{2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE BANK OF TOKYO-MITSUBISHI UFJ LTD}

SHAREHOLDERS(S)

^{FUJINON CORPORATION 1,250,000 Company}

^{Street : 324, UETAKE-CHO 1-CHOME}

^{KITA-KU, SAITAMA-SHI}

^Town:

^Postcode:

^{Country: Japan}

FORMER SHAREHOLDER(S)

^{FUJI PHOTO OPTICAL CO LIMITED 1,250,000}

^{NISHIYAMA KATSUYA 1}

^{MAEDA YOSHIMI 1}

HOLDING COMPANY

^{FUJINON CORPORATION UF07146E % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : LEVEL

Financial Situation: AVERAGE

LITIGATION(S)

Type Of Case: Magistrate Court - W/S

Case Number: MCS007469/00

Defendant FUJINON SINGAPORE PTE.LTD. ROC # : 199100746E

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 24/04/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005 31/12/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 14,182 14,182 14,182}

^{Tangible Fixed Assets: 9,441 9,308 10,326}

^{Total Fixed Assets: 23,623 23,490 24,508}

^{Inventories: 1,550,359 1,414,335 1,098,715}

^{Receivables: 4,093,274 2,637,493 3,047,345}

^{Cash,Banks, Securitis: 1,541,926 2,303,757 2,055,898}

^{Other current assets: 33,294 31,150 144,635}

^{Total Current Assets: 7,218,853 6,386,735 6,346,593}

^{TOTAL ASSETS: 7,242,476 6,410,225 6,371,101}

^{--- LIABILITIES}

^{Equity capital: 843,351 843,351 843,351}

^{Profit & loss Account: 957,290 751,154 728,260}

^{TOTAL EQUITY: 1,800,641 1,594,505 1,571,611}

^{Other long term Liab.: 242 2,899 5,678}

^{Total L/T Liabilities: 242 2,899 5,678}

^{Trade Creditors: 4,869,557 4,160,213 4,179,438}

^{Prepay. & Def. charges: 157,054 146,274 145,235}

^{Short term liabilities: 2,905 2,676 2,726}

^{Provisions: 378,114 365,284 154,000}

^{Other Short term Liab.: 33,963 138,374 312,413}

^{Total short term Liab.: 5,441,593 4,812,821 4,793,812}

^{TOTAL LIABILITIES: 5,441,835 4,815,720 4,799,490}

PROFIT & LOSS ACCOUNT

^{Net Sales 13,107,104 14,787,369 15,577,018}

^{Gross Profit: 2,247,089 2,361,751 2,031,896}

^{NET RESULT BEFORE TAX: 580,946 503,740 809,836}

^{Tax : 109,342 108,042 158,677}

^{Net income/loss year: 471,604 395,698 651,159}

^{Interest Paid: 647 623 610}

^{Depreciation: 5,528 7,799 7,456}

^{Dividends: - - 110,242}

^{Directors Emoluments: 122,742 93,771 95,072}

^{Purchases,Sces & Other Goods: 10,860,015 12,425,618 13,545,122}

^{Wages and Salaries: 578,268 513,587 480,647}

^{Financial Income: 26,127 30,106 22,165}

RATIOS

^{31/12/2006 31/12/2005 31/12/2004}

^{Turnover per employee: 655355.20 739368.45 778850.90}

^{Net result / Turnover(%): 0.04 0.03 0.04}

^{Stock / Turnover(%): 0.12 0.10 0.07}

^{Net Margin(%): 3.60 2.68 4.18}

^{Return on Equity(%): 26.19 24.82 41.43}

^{Return on Assets(%): 6.51 6.17 10.22}

^{Dividends Coverage: - - 5.91}

^{Net Working capital: 1777260.00 1573914.00 1552781.00}

^{Cash Ratio: 0.28 0.48 0.43}

^{Quick Ratio: 1.04 1.03 1.06}

^{Current ratio: 1.33 1.33 1.32}

^{Receivables Turnover: 112.43 64.21 70.43}

^{Leverage Ratio: 3.02 3.02 3.05}

^{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}

^{Dividends Coverage : Net income loss year/Dividends}

^{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 12.93% FROM US$1,594,505 IN FY 2005 TO US$1,800,641 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$957,290 (2005: US$751,154); A RISE OF 27.44% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 89.49% (2005: 86.44%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$4,869,557 (2005: US$4,160,213). THE BREAKDOWN IS AS FOLLOWS:}

^{-EXTERNAL PARTIES - 2006: US$61,657 (2005: US$9,698)}

^{-HOLDING COMPANY - 2006: US$4,806,439 (2005: US$4,150,515)}

^{-RELATED COMPANY - 2006: US$1,461 (2005: - )}

^{IN THE LONG-TERM, SUBJECT WAS WHOLLY FINANCED BY OTHER LONG-TERM LIABILITIES AND AMOUNTED TO US$242 (2005: US$2,899). THE BREAKDOWN IS AS FOLLOWS:}

^{-HIRE PURCHASE CREDITOR - 2006: US$242 (2005: US$2,899)}

^{IN ALL, LEVERAGE RATIO REMAIN STABLE AT 3.02 TIMES AS A RESULT OF A PROPORTIONATE RISE IN TOTAL LIABILITIES AND TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO REMAIN AT 1.33 TIMES AND QUICK RATIO IMPROVED SLIGHTLY TO 1.04 TIMES FROM 1.03 TIMES IN FY 2005.}

^{NET WORKING CAPITAL IMPROVED BY 12.92% FROM US$1,573,914 IN FY 2005 TO US$1,777,260.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-CASH AND BANK BALANCES - 2006: US$1,041,926 (2005: US$803,757)}

^{-FIXED DEPOSITS - 2006: US$500,000 (2005: US$1,500,000)}

^{PROFITABILITY:}

^{REVENUE POSTED A DECLINE OF 11.36% FROM US$14,787,369 IN FY 2005 TO US$13,107,104 AND NET PROFIT ROSE BY 19.18% TO US$471,604 (2005: US$395,698). THIS COULD BE DUE TO THE NON-EXISTENCE OF LOSS/(GAIN) ON FOREIGN EXCHANGE SWAP CONTRACTS OF - IN FY 2006 (2005: US$289,502). HENCE, NET MARGIN ROSE TO 3.60% (2005: 2.68%).}

^{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 CONSIDERING THAT ITS INTEREST EXPENSES WERE LOW AT US$647 IN FY 2006 (2005: US$623).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-CLUB MEMBERSHIPS - 2006: US$14,182 (2005: US$14,182)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITIES}

^{BANK GUARANTEES - 2006: US$64,482 (2005: US$18,057)}

^{BANK GUARANTEES ARE SECURED BY A LETTER OF GUARANTEE FROM ITS HOLDING COMPANY.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 19/02/1991 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "FUJI KOKI SINGAPORE PTE. LTD.".}

^{SUBSEQUENTLY, ON 01/10/2004, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "FUJINON SINGAPORE PTE. LTD.".}

^{AS AT 06/06/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 1,250,000 SHARES OF A VALUE OF S$1,250,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF OPTICAL AND PHOTOGRAPHIC EQUIPMENT AND SUPPLIES}

^{2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF IMPORTERS, EXPORTERS AND SERVICES OF OPTICAL AND MEDICAL PRECISION PRODUCTS, PHOTOGRAPHIC EQUIPMENT AND SUPPLIES, OPTICAL PRECISION MEASURING PRODUCTS AND RELATED ACCESSORIES.}

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

^{BACKGROUND OF FUJINON CORPORATION:}

^{IN 1944, FUJINON CORPORATION WAS ESTABLISHED TO DEVELOP THE OPTICAL INSTRUMENT BUSINESS OF FUJI PHOTO FILM GROUP. BY INVESTING IN EXTENSIVE RESEARCH AND DEVELOPMENT, THE GROUP HAVE COMBINED OPTICAL TECHNOLOGIES WITH COMPLEX TECHNOLOGIES IN A STRATEGIC FORMULA. WITH 1,500 EMPLOYEES, THEY CONTINUE TO FOCUS ON THE FUTURE.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* THE SALES AND SERVICE OF THE COMPLETE RANGE OF FUJINON TECHNOLOGICALLY ADVANCED OPTICAL PRODUCTS}

^{PRODUCTS DEALINGS:}

^{* BROADCAST TV LENSES}

^{* REMOTE PAN/TILT SYSTEMS}

^{* CCTV LENSES}

^{* FIBER SCOPES & VIDEO ENDOSCOPES}

^{* BINOCULARS}

^{* STABISCOPES}

^{* COMPONENTS & PARTS}

^{* OTHER OPTICAL RELATED PRODUCTS}

^{TRADE NAMES (PRODUCTS):}

^{* FUJINON MEDICAL EQUIPMENT,TV LENSES & BINOCULAR}

^MARKETS:

^{* SOUTH-EAST ASIA (ASEAN)}

^{* SOUTH ASIA (INDIA SUB-CONTINENT)}

^{TERMS OF PAYMENT:}

^{* TRADE AND OTHER PAYABLES: 30-90 DAYS TERM}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:}

^{* JAPANESE CHAMBER OF COMMERCE & INDUSTRY}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 11/06/2007, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2007: 20}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 11/06/2007.}

^{ITS IMMEDIATE AND ULTIMATE HOLDING COMPANY IS FUJINON CORPORATION, WHICH IS INCORPORATED IN JAPAN.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE; 2004: 20; 2003: 15)}

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

^{REGISTERED AND BUSINESS ADDRESS:}

^{211 HENDERSON ROAD}

^{#10-04 HENDERSON INDUSTRIAL PARK}

^{SINGAPORE 159552}

^{- RENTED PREMISE}

^{- OWNED BY F J BENJAMIN HOLDINGS LTD}

^{- DATE OF CHANGE OF ADDRESS: 23/04/2001}

^WEBSITE:

^{http://www.fujinon.com.sg}

^EMAIL:

^{fujinon@fujinon.com.sg}

MANAGEMENT

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

^{1) MASAKI YAMADA, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{2) HIGUCHI TAKESHI, A JAPANESE}

^{- BASED IN JAPAN.}

^{3) TSUJITA AKIRA, A JAPANESE}

- BASED IN JAPAN.

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

DOMESTIC WHOLESALE TRADE IN 4Q 2006 HAS DECLINED BY 6.9%. EXCLUDING PETROLEUM, DOMESTIC SALES REMAINED AT SIMILAR LEVEL COMPARED TO THE PREVIOUS QUARTER.

GENERAL WHOLESALE TRADE POSTED THE LARGEST SALES DECREASE OF 16.6%, FOLLOWED BY THE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS OF 15.7% AND HOUSEHOLD EQUIPMENT AND FURNITURE OF 13.2%.

SECTORS OF INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS REGISTERED GROWTHS OF 17.0% AND 12.3%, RESPECTIVELY.

FOREIGN WHOLESALE TRADE INDEX

ON A QUARTER-TO-QUARTER BASIS, OVERALL FOREIGN WHOLESALE TRADE CONTRACTED BY 7.9% IN 4Q 2006 AFTER TWO QUARTERS OF POSITIVE GROWTH. FOREIGN SALES WENT DOWN BY 1.6%, EXCLUDING PETROLEUM.

THE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS AND ELECTRONIC COMPONENTS MARKED LOWER OVERSEAS SALE OF 14.2% AND 11.6% RESPECTIVELY IN 4Q 2006 OVER 3Q 2006.

RETAIL TRADE

IN GENERAL, RETAIL SALES GREW BY 7.9% IN 4Q 2006, UP FROM THE 5.2% IN THE PREVIOUS QUARTER. THIS BROUGHT FULL YEAR GROWTH FOR 2006 TO 6.9%, DOWN FROM 9.0% IN 2005. EXCLUDING MOTOR VEHICLE SALES, RETAIL SALES ROSE 4.1%, SLOWING FROM THE 7.2% GAIN IN THE PREVIOUS YEAR.

MOST RETAIL SECTORS REPORTED BRISK BUSINESS IN DEC. 2006. SALES OF RECREATIONAL GOODS, DEPARTMENT STORES, WEARING APPAREL AND FOOTWEAR, FURNITURE AND HOUSEHOLD EQUIPMENT, WATCHES AND JEWELLERY CLIMBED BY 36.6% TO 44.2% IN DEC. 2006 COMPARED TO THE PREVIOUS MONTH.

LIKEWISE, RETAILERS OF OPTICAL GOODS AND BOOKS, TELECOMMUNICATIONS APPARATUS AND COMPUTERS, FOOD AND BEVERAGES, MEDICAL GOODS AND TOILETRIES AND SUPERMARKETS ENJOYED GROWTH BETWEEN 12.7% TO 26.0%.

OUTLOOK

FOR WHOLESALE TRADE, A NET WEIGHTED BALANCE OF 11% OF FIRMS ANTICIPATES BUSINESS TO BE LESS BRISK FOR COMING MONTHS. THOSE DEALING IN JEWELLERY AND WATCHES, INDUSTRIAL MACHINERY AND EQUIPMENT, TELECOMMUNICATIONS EQUIPMENT AND ELECTRONIC COMPONENTS ARE AMONG THOSE WHO FORESEE SLOWER BUSINESS IN THE COMING MONTHS.

FOR RETAILERS, A NET WEIGHTED BALANCE OF 8%, FORECAST THE BUSINESS CONDITIONS TO IMPROVE IN THE NEXT SIX MONTHS. DEPARTMENT STORES OWNERS AND RETAILERS OF FURNITURE AND FURNISHINGS ARE OPTIMISTIC ABOUT THE BUSINESS PROSPECTS.

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

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