MIRA INFORM REPORT

MIRA INFORM REPORT

Report Date :

18.06.2007

IDENTIFICATION DETAILS

Name :	SHIBUYA SAKURA INDUSTRIES (S) PTE LTD

Registered Office :	455 Tagore Industrial Avenue Sindo Industrial Estate, 787825

Country :	Singapore

Financials (as on) :	31.03.2006

Date of Incorporation :	03/10/1997

Legal Form :	Exempt Pte Ltd

Line of Business :	Wholesale of Textiles

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

Financial Elements

FY2006

COMPANY

Sales : S$18,917,516

Networth : S$ 805,175

Paid-Up Capital : S$ 410,000

Net result : S$ 147,008

Net Margin(%) : 0.78

Return on Equity(%) : 18.26

Leverage Ratio : 3.85 TIMES

COMPANY IDENTIFICATION

Subject Company : SHIBUYA SAKURA INDUSTRIES (S) PTE LTD

Business Address : 455 TAGORE INDUSTRIAL AVENUE SINDO INDUSTRIAL ESTATE

Town : SINGAPORE

Postcode : 787825

County : -

Country : Singapore

Telephone : 6459 1622

Fax : 6456 5550

ROC Number : 199706908E

Reg. Town : -

SUMMARY

All amounts in this report are in : SGD

Legal Form : Exempt Pte Ltd

Date Inc. : 03/10/1997

Previous Legal Form : -

Summary year : 31/03/2006

Sales : 18,917,516

Net Worth : 805,175

Paid-Up Capital : 410,000

Employees : 4

Net Result : 147,008

Auditor : D. ARUMUGAM & CO

PRINCIPAL(S)

SEATON GARY DONALD

Director

F0779553W

DIRECTOR(S)

^{SEATON GARY DONALD}

^Director

^F0779553W

^{Appointed on : 14/06/2001}

^{Street :
257 ARCADIA ROAD #07-02,
HILLCREST ARCADIA}

^{Town :
SINGAPORE}

^{Postcode :
289851}

^{Country :
Singapore}

^{N ANANDARAJA}^{S/O NADARAJAH}

^Director

^S1794580G

^{Appointed on : 21/09/1999}

^{Street :
12 TELOK BLANGAH CRESCENT, #15-109,}

^{Town :
SINGAPORE}

^{Postcode :
090012}

^{Country :
Singapore}

^{HARIKRISHNAN S/O MUTHUSAMY}

^{Company Secretary}

^S2135685I

^{Appointed on : 03/10/1997}

^{Street :
101 AH HOOD ROAD, #11-02}

^{Town :
SINGAPORE}

^{Postcode :
320101}

^{Country :
Singapore}

ACTIVITY (IES)

IMPORTERS And EXPORTERS Code: 11760

SCRAP METALS Code: 19045

COMMISSION MERCHANTS Code: 4990

BASED ON ACRA'S RECORD AS AT 12/06/2007

1) WHOLESALE OF TEXTILES

2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)

CHARGES

Date : 08/05/2007

Comments : CHARGE NO: C200703410

AMOUNT SECURED: 0.00 AND ALL MONIES OWING

CHARGEE(S): SING INVESTMENTS & FINANCE LIMITED

Date : 27/02/2006

Comments : CHARGE NO: C200601297

AMOUNT SECURED: 0.00 AND ALL MONIES OWING

CHARGEE(S): INDIAN BANK

Date : 08/10/2004

Comments : CHARGE NO: C200405012

AMOUNT SECURED: 0.00 AND ALL MONIES OWING

CHARGEE(S): INDIAN BANK

Date : 29/09/2004

Comments : CHARGE NO: C200404843

AMOUNT SECURED: 0.00 AND ALL MONIES OWING

CHARGEE(S): INDIAN BANK

Date : 20/04/2004

Comments : CHARGE NO: C200401985

AMOUNT SECURED: 0.00 AND ALL MONIES OWING

CHARGEE(S): INDIAN BANK

Date : 17/12/2003

Comments : CHARGE NO: C200306100

AMOUNT SECURED: 0.00 AND ALL MONIES OWING

CHARGEE(S): INDIAN BANK

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

INDIAN BANK

SHAREHOLDERS(S)

SEATON GARY DONALD

1 Private Person

Street : 257 ARCADIA ROAD, #07-02, HILLCREST ARCADIA

Town : SINGAPORE

Postcode : 289851

Country : Singapore

N ANANDARAJA S/O NADARAJAH

249,999 Private Person

Street : 12 TELOK BLANGAH CRESCENT, #15-109

Town : SINGAPORE

Postcode : 090012

Country : Singapore

SOMASEGARAN S/O K PONNAMPALAM

90,000 Private Person

Street : 18C JALAN PARAS, YONG SENG ESTATE

Town : SINGAPORE

Postcode : 418873

Country : Singapore

PARIKH SAUMIL KISHORE KUMAR

160,000 Private Person

Street : 48A LORONG J TELOK KURAU

Town : SINGAPORE

Postcode : 425838

Country : Singapore

SUBSIDIARY (IES)

No Participation In Our Database

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 : SGD}

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

^{Date Account Lodged: 03/05/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 1,308 2,735}

^{Investments 2,000 48,000}

^{Total Fixed Assets}^{: 3,308 50,735}

^{Receivables: 1,676,746 2,737,289}

^{Cash, Banks, Securities: 587,122 453,380}

^{Other current assets: 1,635,758 1,182,889}

^{Total Current Assets}^{:
3,899,626
4,373,558}

^{TOTAL ASSETS:
3,902,934
4,424,293}

^{--- LIABILITIES ---}

^{Equity capital: 410,000 250,000}

^{Reserves: 15,000}

^{Profit & loss Account: 395,175 248,167}

^{Total Equity}^{: 805,175 513,167}

^{Trade Creditors: 989,869 821,101}

^{Short term liabilities:
860}

^{Due to Bank: 621,106 1,696,895}

^{Provisions: 52,352 18,572}

^{Other Short term Liab.: 1,303,209 1,241,030}

^{Prepay. & Def. charges: 131,223 132,668}

^{Total short term Liab.}^{:
3,097,759
3,911,126}

^{TOTAL LIABILITIES:
3,097,759
3,911,126}

^{--- PROFIT & LOSS ACCOUNT ---}

^{Net Sales 18,917,516 19,145,392}

^{Purchases,Sces & Other Goods: 17,673,624 18,224,237}

^{Gross Profit: 1,243,892 921,155}

^{Result of ordinary operations 577,889 286,522}

^{NET RESULT BEFORE TAX: 188,288 167,071}

^{Tax :
41,280 19,567}

^{Net income/loss year: 147,008 147,504}

^{Interest Paid: 389,601 286,522}

^{Depreciation: 1,427 1,427}

^{Directors Emoluments: 24,000 6,000}

^{Wages and Salaries: 173,070 163,895}

^{Financial Income: 7,874 19,356}

RATIOS

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

^{Turnover per employee: 4729379.00 4786348.00}

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

^{Fin. Charges / Turnover(%):
0.02
0.01}

^{Net Margin(%): 0.78 0.77}

^{Return on Equity(%): 18.26 28.74}

^{Return on Assets(%): 3.77 3.33}

^{Net Working capital: 801867.00 462432.00}

^{Cash Ratio:
0.19 0.12}

^{Quick Ratio: 0.73 0.82}

^{Current ratio: 1.26 1.12}

^{Receivables Turnover: 31.91 51.47}

^{Leverage Ratio: 3.85 7.62}

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

Receivables Turnover : (Receivable*360)/Net sales

Leverage Ratio : Total liabilities/(Total equity-Intangible assets)

FINANCIAL COMMENTS

THE FINANCIAL CONDITION OF THE COMPANY WAS DEEMED TO BE FAIR IN VIEW OF THE FOLLOWING:

NET WORTH:

THE BALANCE SHEET WAS PASSABLE WITH TOTAL EQUITY RISING BY 56.90% AMOUNTING TO S$805,175 (2005: S$513,167). THIS WAS CONTRIBUTED BY HIGHER RETAINED EARNINGS BROUGHT FORWARD OF S$395,175(2005: S$248,167).

LEVERAGE:

THE LEVERAGE RATIO HAD IMPROVED TO 3.85 TIMES (2005: 7.62 TIMES),INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.

IN THE SHORT TERM, TRADE CREDITORS INCREASED BY 20.55%, AMOUNTING TO S$989,869 (2005: S$821,101). AMOUNT DUE TO BANKS OF S$621,106 (2005: S$1,696,895) COMPRISED OF:

* DISCOUNTED BILLS OF S$52,840 (2005: NIL)

* TRUST RECEIPTS OF S$549,873 (2005: S$1,366,895)

* SHORT TERM BANK LOANS (SECURED) OF S$18,225 (2005: S$330,000)

* BANK OVERDRAFT OF S$168 (2005: NIL)

LIQUIDITY:

THE OVERALL LIQUIDITY OF THE COMPANY WAS FAIRLY HEALTHY. NET WORKING CAPITAL REGISTERED HIGHER AT S$801,867 (2005: S$462,432).

ON THE OTHER HAND, THE QUICK RATIO WAS LACKING AT 0.73 TIMES (2005: 0.82 TIMES) WHILE THE CURRENT RATIO WAS SUFFICIENT AT 1.26 TIMES (2005: 1.12 TIMES).

PROFITABILITY:

REVENUE FOR FY2006 POSTED LOWER BY 1.19%, TOTALLING S$18,917,516 (2005: S$19,145,392). NET INCOME ALSO REGISTERED LOWER AT S$147,008 (2005: S$147,504).

THUS, NET MARGIN STOOD HIGHER AT 0.78% (2005: 0.77%).

DEBT SERVICING:

DEBT SERVICING PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE SUFFICIENT LIQUIDITY AND IF TRADE RECEIVABLES WERE FORTHCOMING.

AVERAGE COLLECTION PERIOD HAD ALSO SHORTENED TO 32 DAYS (2005: 51 DAYS).

NOTES TO THE FINANCIAL STATEMENTS:

SECURITIES OFFERED TO THE BANK

TRADE FACILITIES ARE SECURED BY:

FIXED DEPOSIT PLUS INTEREST ACCRUED IN THE NAME OF THE COMPANY FOR S$581,726 (2005: S$416,344)

PERSONAL JOINT GUARANTEES FOR USD5,400,000 (2005: USD3,800,000) FROM THE DIRECTORS

ADDITIONAL CASH MARGIN FOR USD100,000 TO BE PLACED AS COLLATERAL FOR THE INCREASE IN CREDIT LINES

DEBENTURE CHARGE ON FIXED AND FLOATING ASSETS (EXISTING AND FUTURE) IN FAVOUR OF THE BANK

EVENTS AFTER THE BALANCE SHEET DATE

THE COMPANY ISSUED 90,000 ORDINARY SHARES TO AN INDIVIDUAL OTHER THAN THE DIRECTORS FOR S$90,000 ON 24 AUGUST 2006.

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 03/10/1997 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "SHIBUYA SAKURA INDUSTRIES (S) PTE LTD".

AS AT 12/06/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 500,000 SHARES OF A VALUE OF S$500,000.

PRINCIPAL ACTIVITIES:

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

1) WHOLESALE OF TEXTILES

2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)

DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THAT OF IMPORTERS, EXPORTERS AND WHOLESALERS OF SCRAP, BUYING AND SELLING OF VESSELS, COMMISSION AGENT AND GENERAL WHOLESALE TRADE INCLUDING GENERAL IMPORTERS AND EXPORTERS.

FROM THE RESEARCH CONDUCTED, THE FOLLOWING INFORMATION WAS GATHERED:

SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: TEXTILE MERCHANTS.

TERMS OF PAYMENT:

* TRADE & OTHER RECEIVABLES: 30-90 DAYS TERM

* TRADE & OTHER PAYABLES : 30-90 DAYS TERM

NUMBER OF EMPLOYEES (31 MARCH):

* COMPANY - 2006: 4 (2005: 4)

NO OTHER TRADE INFORMATION WAS MADE AVAILABLE ON 15/06/2007 AS A TELE-INTERVIEW REQUEST WAS NOT GRANTED.

REGISTERED AND BUSINESS ADDRESS:

455 TAGORE INDUSTRIAL AVENUE

SINDO INDUSTRIAL ESTATE

SINGAPORE 787825

DATE OF CHANGE OF ADDRESS: 01/04/2005

-- RENTED PREMISE

-- PREMISE OWNED BY:

WEBSITE: NA

EMAIL: NA

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE:

1) SEATON GARY DONALD, AN AUSTRALIAN - BASED IN SINGAPORE

2) N ANANDARAJA S/O NADARAJAH, A SINGAPOREAN - HOLDS NO OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE

Singapore’s Country Rating 2007

Rating: A1

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