MIRA INFORM REPORT

Report Date :

01.03.2007

IDENTIFICATION DETAILS

Name :	DELFI SINGAPORE PTE. LTD.

Registered Office :	^{7 Gul Circle, #02-01/06, Singapore 238164}

Country :	Singapore

Financials (as on) :	31.12.2005

Date of Incorporation :	^07/05/2004

Com. Reg. No.:	^200405563R

Legal Form :	^{Pte Ltd}

Line of Business :	Trading of Pharmaceuticals, Wine and Confectionery.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Unknown

Litigation :	Clear

Subject Company

DELFI SINGAPORE PTE. LTD.

Line Of Business

TRADING OF PHARMACEUTICALS, WINE AND CONFECTIONERY

Parent Company

PETRA FOODS LIMITED

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

COMPANY

Sales : S$16,150,107

Networth : S$2,840,045

Paid-Up Capital : S$3,000,000

Net result : S$-159,955

Net Margin(%) : -0.99

Return on Equity(%) : -5.63

Leverage Ratio : 3.09

Note: Based on Accounting and Corporate Regulatory Authority’s (ACRA) record dated 26/02/2007, the paid-up capital has increased to S$4,152,130.

Rating

Credit Rating : Sing $ 1000001 to Sing $ 5000000

COMPANY IDENTIFICATION

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

^{Former Name :
PETRA SIME MARKETING PTE LTD}

^{Business Address : 7 GUL CIRCLE}

^#02-01/06

^{Town :
SINGAPORE}

^{Postcode : 238164}

^{County :
-}

^{Country :
Singapore}

^{Telephone : 6490 4300}

^{Fax :
6897 7487}

^{ROC Number :
200405563R}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{PETRA SIME
MARKETING PTE LTD}

^{DATE OF CHANGE OF
NAME: 01/08/2006}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 07/05/2004}

^{Previous Legal
Form : --}

^{Summary year :
31/12/2005}

^{Sales :
16,150,107}

^{Networth : 2,840,045}

^{Capital :
10,000,000}

^{Paid-Up Capital :
3,000,000}

^{Employees : 65}

^{Net result : -159,955}

^{Share value : -}

^{AUDITOR :
PRICEWATERHOUSECOOPERS}

^{BASED ON ACRA'S
RECORD AS AT 06/10/2006}

^{CURRENCY AMOUNT}

^{ISSUED
ORDINARY SGD 4,152,130.00}

^{PAID-UP
ORDINARY SGD 4,152,130.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started :
07/05/2004}

PRINCIPAL(S)

^{CHUA KOON
CHEK S0033540A Director}

DIRECTOR(S)

^{CHUANG TIONG
CHOON S2000217D Director}

^{Appointed on : 24/01/2005}

^{Street : 19 TANGLIN HILL}

^{Town: SINGAPORE}

^{Postcode: 248052}

^{Country: Singapore}

^{CHUANG TIONG LIEP
@ CHIT KO KO S2009176B
Director}

^{Appointed on : 24/01/2005}

^{Street : 131 DUCHESS AVENUE}

^{DUCHESS GARDEN}

^{Town: SINGAPORE}

^{Postcode: 269161}

^{Country: Singapore}

^{LIAN KIM SENG S2586702E Company Secretary}

^{Appointed on : 24/01/2005}

^{Street : 41
JURONG EAST AVENUE 1}

^#05-02

^{PARC OASIS}

^{Town: SINGAPORE}

^{Postcode: 609777}

^{Country: Singapore}

^{CHUA KOON CHEK S0033540A Director}

^{Appointed on : 07/10/2005}

^{Street : 11
BARKER ROAD}

^{Town: SINGAPORE}

^{Postcode: 309876}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{MD JA'FAR BIN
ABDUL CARRIM A10716077}

^{FOO MARN HING A11355434}

^{CHUANG TIONG
KIE S1326974B}

ACTIVITY(IES)

^{MARKETING
CONSULTANTS
Code:13455}

^{IMPORTERS And
EXPORTERS Code:11760}

^{BASED ON ACRA'S
RECORD AS AT 26/02/2007}

^{1. GENERAL
WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); MARKETING AND}

^{TRADING OF CONSUMER PRODUCTS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

No Bankers Information In Our Database

SHAREHOLDERS(S)

^{PETRA FOODS
LIMITED
4,152,130 Company}

^{Street : 111
SOMERSET ROAD}

^#16-01

^{SINGAPORE POWER
BUILDING}

^{Town: SINGAPORE}

^{Postcode: 238164}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{SIME DARBY
SINGAPORE LTD
1,200,000}

HOLDING COMPANY

^{PETRA FOODS
LIMITED
198403096C % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : UNKNOWN

Trend : UNKNOWN

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:
14/06/2006}

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

^{Number
of weeks:
52 34}

^{Consolidation
Code: COMPANY COMPANY}

^{--- ASSETS}

^{Tangible
Fixed Assets:
857,931
-}

^{Total
Fixed Assets:
857,931
-}

^{Inventories: 4,571,233 -}

^{Receivables: 4,508,628 -}

^{Cash,Banks,
Securitis: 448,160 1}

^{Other
current assets:
1,239,610
-}

^{Total
Current Assets:
10,767,631
1}

^{TOTAL ASSETS: 11,625,562 1}

^{--- LIABILITIES}

^{Equity
capital: 3,000,000 1}

^{Profit
& lost Account: -159,955}

^{TOTAL EQUITY: 2,840,045 1}

^{L/T
deffered taxes:
3,448
-}

^{Other
long term Liab.:
108,916
-}

^{Total
L/T Liabilities:
112,364
-}

^{Trade
Creditors:
4,770,545
-}

^{Prepay.
& Def. charges:
504,000
-}

^{Short
term liabilities:
694,947
-}

^{Provisions: 2,562 -}

^{Other
Short term Liab.:
2,701,099
-}

^{Total
short term Liab.:
8,673,153
-}

^{TOTAL LIABILITIES: 8,785,517 -}

PROFIT & LOSS ACCOUNT

^{Net
Sales
16,150,107
-}

^{Gross
Profit:
3,569,803
-}

^{NET
RESULT BEFORE TAX:
-153,945
-}

^{Tax
: 6,010 -}

^{Net
income/loss year:
-159,955
-}

^{Interest
Paid: 9,349 -}

^{Depreciation: 136,387 -}

^{Purchases,Sces
& Other Goods:
12,580,304
-}

^{Wages
and Salaries:
1,826,886
-}

RATIOS

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

^{Turnover
per employee: 248463.18 0.00}

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

^{Stock
/ Turnover(%): 0.28 0.28}

^{Net
Margin(%): -0.99 -0.99}

^{Return
on Equity(%): -5.63 0.00}

^{Return
on Assets(%): -1.38 0.00}

^{Net
Working capital: 2094478.00 1.00}

^{Cash
Ratio: 0.05 0.05}

^{Quick
Ratio: 0.57 0.57}

^{Current
ratio: 1.24 1.24}

^{Receivables
Turnover: 100.50 100.50}

^{Leverage
Ratio: 3.09 0.00}

^{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
STATEMENTS FOR THE YEAR ENDED 31/12/2005 COVERS THE PERIOD FROM 01/01/2005 TO
31/12/2005, A TOTAL OF 52 WEEKS. THE
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2004 COVERS THE PERIOD FROM
07/05/2004 (DATE OF INCORPORATION) TO 31/12/2004, A TOTAL OF 34 WEEKS. DUE TO
THE VERY LIMITED INFORMATION FOR THE YEAR ENDING 31/12/2004, THE ANALYSIS WILL
ONLY COVER THE YEAR ENDING 31/12/2005.}

^{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 AMOUNTING TO S$2,840,045 IN FY 2005.}

^LEVERAGE:

^{IN THE SHORT-TERM,
SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 55.00% OF THE
TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$4,770,545. THE BREAKDOWN IS AS
FOLLOWS:}

^{-THIRD PARTIES -
2005: S$4,770,545.}

^{IN ALL, LEVERAGE RATIO IS SIGNIFICANT AT
3.09 TIMES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S
LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE NET WORKING CAPITAL AND
LIQUIDITY RATIOS. CURRENT RATIO IS 1.24 TIMES AND QUICK RATIO IS 0.57 TIMES.}

^{NET WORKING
CAPITAL AMOUNTS TO S$2,094,478.}

^{PROFITABILITY:}

^{REVENUE IS
S$16,150,107 AND NET LOSS IS S$-159,955. HENCE, NET MARGIN IS -0.99%.}

^{DEBT
SERVICING:}

^{DEBT SERVICING
PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE CAN BE MAINTAINED AND PAYMENT BY
TRADE DEBTORS ARE FORTHCOMING. HOWEVER, IT REMAINS TO BE SEEN WHETHER THE NET
LOSS SITUATION WILL PERSIST.}

^{NOTES TO THE FINANCIAL STATEMENTS}^:

^{EVENTS
AFTER THE BALANCE SHEET DATE}

^{ON 25/01/2006, THE
COMPANY INCREASED ITS PAID UP CAPITAL FROM S$3,000,000 TO S$4,152,130. THE
CONSIDERATION OF NEW SHARES WAS SETTLED BY WAY OF CAPITALISING THE FULL AMOUNT
OF LOAN OWING BY COMPANY TO PETRA FOODS LIMITED.}

BACKGROUND/OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 07/05/2004 AS A LIMITED PRIVATE
COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "PETRA SIME MARKETING
PRIVATE LIMITED".}

^{SUBSEQUENTLY, ON
01/08/2006, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "DELFI
SINGAPORE PTE. LTD.".}

^{AS AT 26/02/2007,
THE COMPANY HAS ISSUED AND PAID-UP
CAPITAL OF 4,152,130 SHARES OF A VALUE OF S$4,152,130.}

^{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); MARKETING AND}

^{TRADING OF CONSUMER PRODUCTS}

^{DURING THE FINANCIAL
YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF MARKETING
AND TRADING OF CONSUMER PRODUCTS.}

^{ON 01/03/2005, THE
COMPANY ACQUIRED THE WINE, LIQUOR AND HEALTHCARE DIVISION OF SIME DARBY
SINGAPORE LIMITED FOR A CONSIDERATION OF S$4,152,128. THE PURCHASE
CONSIDERATION EQUALED THE FAIR VALUE OF THE NET ASSETS ACQUIRED.}

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

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

^{* SINGAPORE
ASSOCIATION OF PHARMACEUTICAL INDUSTRIES}

^{FROM THE
TELE-INTERVIEW CONDUCTED ON 22/06/2006, THE FOLLOWING WAS GATHERED:}

^{SUBJECT ENGAGES IN
THE FOLLOWING ACTIVITIES:}

^{* TRADING OF
PHARMACEUTICALS, WINE AND CONFECTIONERY}

^{IMPORT COUNTRIES:}

^{* EUROPEAN
CONTINENT}

^{THE COUNTRY SELLS
LOCALLY AND EXPORTS THROUGH AGENTS.}

^{NUMBER OF
EMPLOYEES:}

^{* COMPANY - 2006:
65}

^{NO OTHER TRADE
INFORMATION IS AVAILABLE ON 22/06/2006.}

^{THE COMPANY'S
IMMEDIATE HOLDING CORPORATION IS PETRA FOODS LIMITED, INCORPORATED IN
SINGAPORE. THE ULTIMATE HOLDING CORPORATION IS SG TRUST (ASIA) LTD, A SINGAPORE
REGISTERED PUBLIC TRUST COMPANY.}

^{REGISTERED AND
BUSINESS ADDRESS:}

^{111 SOMERSET ROAD}

^{#16-01 SINGAPORE
POWER BUILDING}

^{- RENTED PREMISE}

^{- OWNED BY
SINGAPORE POWER LIMITED}

^{- DATE OF CHANGE
OF ADDRESS: 18/11/2006}

^{- OFFICE}

^{BUSINESS ADDRESS:}

^{7 GUL CIRCLE}

^#02-01/06

^{KEPPEL
DISTRICENTRE}

^{SINGAPORE 629563}

^{- RENTED PREMISE}

^{- OWNED BY KEPPEL
LOGISTICS PTE LTD}

^{- OFFICE}

^WEBSITE:

^EMAIL:

^{enquiry.pms@petrasime.com.sg}

MANAGEMENT

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

^{1) CHUANG KOON
CHEK, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{DIETHELM SCANSTYLE (PRIVATE) LTD}

^{PETRA-SPT MARKETING PTE LTD}

^{HARPERS MARKETING PTE LTD}

^{2) CHUANG TIONG CHOON,
A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{PETRA FOODS LIMITED}

^{PETRA-SPT MARKETING PTE LTD}

^{3) CHUANG TIONG
LIEP, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{PETRA FOODS LIMITED}

^{PETRA-SPT MARKETING PTE LTD}

^{CERES SIME MARKETING SDN BHD}

Singapore’s Country Rating 2006

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION APPEARS TO BE VERY STABLE.

ECONOMIC GROWTH IS BECOMING MORE MODERATE AS INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND FOR ELECTRONIC PRODUCTS.

ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE’S STRONG FINANCIAL CONDITION.

AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITS POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR’S SHARE HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND BIOTECHNOLOGIES.

ASSETS

ONE OF THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR ROLE IN ITS PERFORMANCE.
ONE OF ASIA’S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS TERMS.
WORKFORCE’S EDUCATION AND SKILL LEVEL IS VERY HIGH.
A MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING COMPANY, TEMASEK.
THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.
GREAT POLITICAL STABILITY.

WEAKNESSES

ECONOMY REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.
MUST ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER OTHER ASIAN ECONOMIES
REFORMS ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM MODERNIZATION.
AGING POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

WITH THE GROWTH IN NON-OIL RE-EXPORTS AND THE RISE IN RETAIL SALES, THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY A ROBUST 15% IN 1Q2006, UP FROM THE 12% GAIN IN 4Q2005.

WHOLESALE TRADE

DOMESTIC WHOLESALE TRADE INDEX

FOLLOWING SEVEN QUARTERS OF DOUBLE-DIGIT GROWTH, THE OVERALL DOMESTIC WHOLESALE TRADE INDEX MODERATED TO 7.5% IN 1Q2006. EXCLUDING PETROLEUM, THE INDEX ROSE BY 14.2% OVER THE SAME PERIOD LAST YEAR.

AT CONSTANT PRICES, THE OVERALL INDEX DECLINED BY 4.4% IN 1Q2006 OVER 1Q2005, MAINLY DUE TO LOWER ACTIVITY IN CHEMICAL AND PETROLEUM SECTORS. EXCLUDING PETROLEUM, IT WAS 7.9% HIGHER THAN A YEAR AGO.

ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A DECLINE OF 16.5% COMPARED TO 4Q2005. EXCLUDING PETROLEUM, THE INDEX WERE LOWER BY 8.9%.

MOST OF THE MAJOR SECTORS REGISTERED SLOWER BUSINESS IN 1Q2006 WITH THE EXCEPTION OF TELECOMMUNICATIONS & COMPUTERS AND GENERAL WHOLESALE TRADE.

FOREIGN WHOLESALE TRADE INDEX

AS COMPARED TO 1Q2005, THE OVERALL FOREIGN WHOLESALE TRADE IN 1Q2006 ROSE BY 15.4%. EXCLUDING PETROLUEM, THE INDEX EXPANDED BY 11.5%.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE MARGINALLY BY 0.9% IN 1Q2006 OVER A YEAR AGO. EXCLUDING PETROLEUM, IT WAS UP BY 7.6%.

ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A DECLINE OF 9.4% FOLLOWING GROWTH FOR THREE CONSECUTIVE QUARTERS. EXCLUDING PETROLEUM, THE INDEX WERE LOWER BY 8.6%.

THE MAJOR SECTORS MOSTLY POSTED LOWER FOREIGN SALES WITH THE EXCEPTION OF TELECOMMUNICATIONS & COMPUTERS SECTOR IN 1Q2006. THE HOUSEHOLD EQUIPMENT & FURNITURE, FOOD, BEVERAGES & TOBACCO SECTOR ALL REPORTED DECLINE IN TURNOVER OF MORE THAN 17% IN THE FIRST QUARTER OF 2006 OVER 4Q2005.

RETAIL TRADE

RETAIL SALES CHALKED UP 8.0% GROWTH IN 1Q2006, FELLING MARGINALLY FROM THE 8.2% GROWTH IN 4Q2005. SALES OF MOTOR VEHICLES ROSE BY 10% IN 1Q2006, HIGHER THAN THE 8.5% GAIN IN THE LAST QUARTER. EXCLUDING MOTOR VEHICLES, RETAIL SALES MODERATED TO 5.2% GROWTH, SLOWER THAN THE 7.8% RISE IN 4Q2005.

ALL THE MAJOR SEGMENTS RECORDED GROWTH IN 1Q2006 OVER 1Q2005, WITH GROWTH RANGING FROM 1.6% TO 18%. THE SEGMENTS WERE TELECOMMUNICATIONS AND COMPUTERS, FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, OPTICAL GOODS AND BOOKS, PROVISION AND SUNDRY SHOPS, DEPARTMENT STORES, SUPERMARKETS, MEDICAL GOODS AND TOILETRIES, RECREATIONAL GOODS, FURNITURE AND HOUSEHOLD EQUIPMENT, WATCHES AND JEWELLERY, AND PETROL SERVICE STATIONS.

A ROSY OUTLOOK FOR RETAILERS

RETAIL SALES IN SINGAPORE ROSE IN JUNE FOR THE 16TH STRAIGHT MONTH AS AN IMPROVING JOB MARKET AND A RISE IN TOURIST ARRIVALS INCREASED CONSUMER SPENDING.

THE RETAIL SALES INDEX GREW BY 5.1% FROM A YEAR EARLIER AFTER EXPANDING BY 13.1% IN MAY. EXCLUDING MOTOR VEHICLES, RETAIL SALES GREW BY 7.8%.

ON A MONTH-ON-MONTH BASIS, ADJUSTED FOR SEASONAL FACTORS, RETAIL SALES IN JUNE DECLINED BY 3.7% OVER MAY. EXCLUDING MOTOR VEHICLES, RETAIL SALES CONTRACTED BY 1.2% FROM MAY.

APPAREL AND FOOTWEAR BUSINESS GREW BY 4.9% WHILE THOSE OF WATCHES AND JEWELLERY ROXE BY 9.5%.

JUNE’S MOTOR VEHICLES SALES GREW BY 2.5% COMPARED WITH JUNE 2005. IT PALE IN COMPARISON WITH A 16.4% GROWTH IN MAY. THE MOTOR VEHICLE SALES GREW BY A MARGINAL 0.4% OVER MAY.

AHEAD

WHOLESALERS PREDICTS POSITIVE BUSINESS CONDITIONS FOR THE PERIOD ENDING DECEMBER 2006. THOSE DEALING IN FURNITURE & FURNISHINGS, COSMETICS & TOILETRIES, JEWELLERY & WATCHES, HOUSEHOLD ELECTRICAL APPLIANCES & EQUIPMENT, ELECTRONIC COMPONENTS, SCIENITIFIC & PRECISION EQUIPMENT, ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

RETAILERS ALSO FORECAST BETTER BUSINESS SENTIMENTS FOR THE COMING MONTHS ENDING DECEMBER 2006, WITH A NET BALANCE OF 22%, ESPECIALLY DEPARTMENT STORES AND RETAILERS OF WEARING APPAREL AND FURNITURE & FURNISHINGS EXPECTING A POSITIVE BUSINESS OUTLOOK FROM THE YEAR-END FESTIVE SHOPPING.

IN ADDITION, RETAILERS ARE EXPECTING A BOOST FROM THE INTERNATONAL MONETARY FUND AND WORLD BANK ANNUAL MEETING IN SEPTEMBER WHICH WILL BE HELD IN SINGAPORE

AS THE GATHERING IS EXPECTED TO DRAW 16,000 OVERSEAS DELEGATES.

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