MIRA INFORM REPORT

Report Date :

6^th March, 2007

IDENTIFICATION DETAILS

Name :	SPECTRUM GLOBAL PTE. LTD
Formerly Known as:	NEOTERIC ASIA PTE. LTD
Registered Office :	105 Cecil Street, #05-01, The Octagon, Singapore 06953, Singapore
Country :	Singapore
Financials (as on) :	31.03.2006
Date of Incorporation :	21.07.2001
Legal Form :	Pte Ltd
Line of Business :	Trading in computer hardware

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 :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Company Name

SPECTRUM GLOBAL PTE. LTD.

Line Of Business 

TRADING IN COMPUTER HARDWARE

Parent Company

SPECVISION HOLDINGS PTE. LTD.

(PERCENTAGE OF SHAREHOLDING: 75.00%)

Financial Elements

FY 2006

COMPANY

Sales : USD28,112,703

Networth : USD478,038

Paid-Up Capital : USD361,784

Net result : USD84,030

Net Margin(%) : 0.30

Return on Equity(%): 17.58

Leverage Ratio : 11.83

Rating

Credit Rating : Sing $ 6 0 001 to Sing $ 1 000 000

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

Subject Company : SPECTRUM GLOBAL PTE. LTD.

Former Name : NEOTERIC ASIA PTE. LTD.

Business Address : 105 CECIL STREET, #05-01, THE OCTAGON

Town : SINGAPORE

Postcode : 069534

County : -

Country : Singapore

Telephone : 6848 8200

Fax : 6848 8216

ROC Number : 200104828R

Reg. Town : -

PREVIOUS IDENTIFICATION

NEOTERIC ASIA PTE. LTD. DATE OF CHANGE OF NAME: 25/01/2006

NEOTERIC PTE LTD DATE OF CHANGE OF NAME: 17/09/2004

SUMMARY

All amounts in this report are in: USD unless otherwise stated

Legal Form : Pte Ltd

Date Inc. : 21/07/2001

Previous Legal Form : -

Summary year : 31/03/2006

Sales : 28,112,703

Net worth : 478,038

Capital : -

Paid-Up Capital : 361,784

Employees : Not Available

Net result : 84,030

Share value : -

Auditor : SASHI KALA DEVI ASSOCIATES

REFERENCES

Litigation : No

Company status : TRADING

Started : 21/07/2001

PRINCIPAL(S)

MAMIDANNA SURYKALI PRASAD F1602252R Director

DIRECTOR(S)

HARSHAD DIPCHAND SHAH B2173258 Director

Appointed on : 21/07/2001

Street : 1402 RAJUL-A 9 HARKNESS ROAD, GAMDEVI MALBARHILL

Town : MUMBAI

Postcode : 400 006

Country : India

MAMIDANNA SURYKALI PRASAD F1602252R Director

Appointed on : 18/04/2005

Street : 105 CECIL STREET, #05-01, THE OCTAGON

Town : SINGAPORE

Postcode : 069534

Country : Singapore

SHRENIK HARSHADKUMAR SHAH S7362782F Director

Appointed on : 14/09/2001

Street : 20 SIMEI STREET 1, #07-11, MELVILLE PARK

Town : SINGAPORE

Postcode : 529944

Country : Singapore

JAMES METHODIUS S/O CYRIL METHODIS S0680660J Company Secretary

Appointed on : 01/04/2003

Street : 132 GRANGE ROAD

Town : SINGAPORE

Postcode : 249606

Country : Singapore

KANWAL NAIN SAHNEY S2616608Z Director

Appointed on : 18/04/2005

Street : 70A BOURNEMOUTH ROAD, BOURNEMOUTH EIGHT

Town : SINGAPORE

Postcode : 439720

Country : Singapore

PARAS HARSHAD Z004494 Director

Appointed on : 21/07/2001

Street : 1402 RAJUL-A 9 HARKNESS ROAD, GAMDEVI MALBARHILL

Town : MUMBAI

Postcode : 400 006

Country : India

ACTIVITY(IES)

IMPORTERS And EXPORTERS Code:11760

COMPUTERS, PERSONAL - HARDWARE - DEALER And/OR AGE Code:5105

BASED ON ACRA'S RECORD AS AT 01/03/2007

1) DEVELOPMENT OF E-COMMERCE APPLICATIONS

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

CHARGES

Date : 27/12/2005

Comments : CHARGE NO : C200508068

AMOUNT SECURED : 0.00 AND ALL MONIES OWING

CHARGEE(S) : MALAYAN BANKING BHD

Date : 26/09/2006

Comments : CHARGE NO : C200606452

AMOUNT SECURED : 0.00 AND ALL MONIES OWING

CHARGEE(S) : OVERSEA-CHINESE BANKING CORPORATION LIMITED

Date : 31/07/2006

Comments : CHARGE NO : C200604982

AMOUNT SECURED : 0.00 AND ALL MONIES OWING

CHARGEE(S) : ABN AMRO BANK N.V.

Date : 19/07/2006

Comments : CHARGE NO : C200604712

AMOUNT SECURED : 0.00 AND ALL MONIES OWING

CHARGEE(S) : OVERSEA-CHINESE BANKING CORPORATION LIMITED

Date : 04/04/2006

Comments : CHARGE NO : C200602154

AMOUNT SECURED : 0.00 AND ALL MONIES OWING

CHARGEE(S) : CITIBANK N.A.

Date : 21/01/2006

Comments : CHARGE NO : C200600551

AMOUNT SECURED : 0.00 AND ALL MONIES OWING

CHARGEE(S : THE BANK OF EAST ASIA LIMITED

Date : 13/05/2005

Comments : CHARGE NO : C200502765

AMOUNT SECURED : 0.00 AND ALL MONIES OWING

CHARGEE(S) : MALAYAN BANKING BHD

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

MALAYAN BANKING BHD

OVERSEA-CHINESE BANKING CORPORATION LIMITED

ABN AMRO BANK N.V.

CITIBANK N.A.

THE BANK OF EAST ASIA LIMITED

SHAREHOLDERS(S)

^{SPECVISION HOLDINGS PTE. LTD. 1,200,000 Company}

Street : 105 CECIL STREET, #05-01, THE OCTAGON

^{Town : SINGAPORE}

^{Postcode : 069534}

^{Country : Singapore}

^{NEOTERIC INFOMATIQUE PRIVATE LTD 400,000 Company}

Street : 225 2ND FLOOR, CHINTHAMANI PLAZA, OFF ANDHERI KURLA ROAD, ANDHERI (E)

Town : MUMBAI

Postcode : -

Country : India

HOLDING COMPANY

^{SPECVISION HOLDINGS PTE. LTD. 200403417H %: 75.00}

SUBSIDIARY(IES)

No Participation In Our Database

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 unless otherwise stated}

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

^{Date Account Lodged: 02/10/2006}

^{Balance Sheet Date: 31/03/2006 31/03/2005 31/03/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

ASSETS

^{Tangible Fixed Assets: 238 475 519}

^{Total Fixed Assets: 238 475 519}

^{Inventories: 2,409,391 706,221 470,737}

^{Receivables: 3,195,944 742,685 220,940}

^{Cash,Banks,Securities: 433,096 87,286 94,699}

^{Other current assets: 96,266 625 37,683}

^{Total Current Assets: 6,134,697 1,536,817 824,059}

^{TOTAL ASSETS: 6,134,935 1,537,292 824,578}

LIABILITIES

^{Equity capital: 361,784 58,824 100,000}

^{Profit & loss Account: 116,254 32,224 52,543}

^{Other: - 319,924 -}

^{Total Equity: 478,038 410,972 152,543}

^{Trade Creditors: 2,463,501 574,727 411,197}

^{Prepay. & Def. charges: 21,661 21,859 32,415}

^{Advanced payments: - 48,115 129,104}

^{Due to Bank: 2,712,062 - -}

^{Provisions: 15,548 2,269 1,262}

^{Other Short term Liab.: 444,125 479,350 98,057}

^{Total short term Liab.: 5,656,897 1,126,320 672,035}

^{TOTAL LIABILITIES: 5,656,897 1,126,320 672,035}

PROFIT & LOSS ACCOUNT

^{Net Sales 28,112,703 8,918,497 5,253,466}

^{Result of ordinary operations 208,976 3,585 -}

^{NET RESULT BEFORE TAX: 99,578 3,585 32,398}

^{Tax: 15,548 2,269 160}

^{Net income/loss year: 84,030 1,316 32,238}

^{Interest Paid: 106,398 110,768 -}

^{Depreciation: 237 1,942 3,157}

^{Directors Emoluments: 46,107 46,988 83,000}

^{Wages and Salaries: 159,143 63,780 9,900}

^{Financial Income: 8,018 - -}

RATIOS

^{31/03/2006 31/03/2005 31/03/2004}

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

^{Fin. Charges / Turnover(%): 0.00 0.01 0.00}

^{Stock / Turnover(%): 0.09 0.08 0.09}

^{Net Margin(%): 0.30 0.01 0.61}

^{Return on Equity(%): 17.58 0.32 21.13}

^{Return on Assets(%): 1.37 0.09 3.91}

^{Net Working capital: 477800.00 410497.00 152024.00}

^{Cash Ratio: 0.08 0.08 0.14}

^{Quick Ratio: 0.64 0.74 0.47}

^{Current ratio: 1.08 1.36 1.23}

^{Receivables Turnover: 40.93 29.98 15.14}

^{Leverage Ratio: 11.83 2.74 4.41}

^{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

^NOTE:

^{THE FINANCIAL STATEMENTS FOR THE YEARS 2006 AND 2005 ARE PRESENTED IN USD, WHILE THE FINANCIAL STATEMENTS FOR THE YEAR 2004 IS PRESENTED IN SGD.}

^{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 16.32% FROM S$410,972 IN 2005 TO USD478,038 IN 2006.}

^{THIS WAS DUE TO HIGHER RETAINED EARNINGS OF USD116,254 (2005: USD32,224); A RISE OF 2.61 TIMES FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM IN 2006, SUBJECT WAS LARGELY FINANCED BY AMOUNTS DUE TO BANKS WHICH MADE UP 47.94% (2005: - ) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO USD2,712,062 (2005: - ).}

^{HOWEVER IN THE SHORT-TERM IN 2005, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 51.03% (2006: 43.55% ) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO USD574,727 (2006: USD2,463,501 ).}

^{SUBJECT DID NOT INCUR OANY LONG TERM LIABILITIES DURING THE FINANCIAL YEAR UNDER REVIEW.}

^{IN ALL, LEVERAGE RATIO ROSE 2.74 FROM TIMES TO 11.83 TIMES AS A RESULT OF MORE THAN PROPORTIONATE RISE IN TOTAL LIABILITIES AS COMPARED TO THE RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 16.40% TO USD477,800 (2005: USD410,497).}

^{SIMILARLY, CASH AND CASH EQUIVALENTS ROSE BY 3.96 TIMES TO USD433,096}

^{(2005: USD87,286).}

^{HOWEVER, CURRENT RATIO FELL TO 1.08 TIMES, DOWN FROM 1.36 TIMES AND QUICK RATIO DECREASED TO 0.64 TIMES FROM 0.74 TIMES IN 2005.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 2.15 TIMES FROM USD8,918,497 IN 2005 TO USD28,112,703 AND NET PROFIT ROSE BY 62.85 TIMES TO USD84,030 (2005: USD1,316).}

^{HENCE, NET MARGIN ROSE TO 0.30% (2005: 0.01%).}

^{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 AS SHOWN BY ITS INTEREST COVERAGE RATIO OF 1.94 TIMES}

^{(2005: 1.03 TIMES).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{AMOUNTS OWING TO BANKS}

^{THE AMOUNTS OWING TO BANKS ARE SECURED BY FIXED DEPOSITS AND JOINT AND SEVERAL PERSONAL GUARANTEES OF THE DIRECTORS.}

^{COMPARATIVE FIGURES}

^{THE COMPANY HAS PRESENTED ITS FINANCIAL STATEMENTS FROM THE CURRENT FINANCIAL YEAR IN UNITED STATES DOLLARS, ITS FUNCTIONAL CURRENCY. CONSEQUENTLY PRIOR YEAR COMPARATIVES HAVE ALSO BEEN RESTATED IN UNITED STATES DOLLARS. CERTAIN RECLASSIFICATIONS HAVE BEEN MADE TO THE PRIOR YEAR'S FINANCIAL STATEMENTS TO ENHANCE COMPARABILITY WITH CURRENT YEAR'S FINANCIAL STATEMENTS.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 21/07/2001 AS A LIMITED PRIVATE COMPANY AND WAS TRADING UNDER THE NAMESTYLE OF "NEOTERIC PTE LTD". ON 17/09/2004, IT CHANGED TO THE NAMESTYLE OF "NEOTERIC ASIA PTE. LTD.".}

^{SUBSEQUENTLY ON 25/01/2006, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE OF "SPECTRUM GLOBAL PTE. LTD.".}

^{AS AT 01/03/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 1,600,000 SHARES, OF A VALUE OF S$1,600,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) DEVELOPMENT OF E-COMMERCE APPLICATIONS}

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

^{IMPORT AND EXPORT OF COMPUTER PARTS & ACCESSORIES}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TO CARRY ON THE BUSINESS OF TRADING IN COMPUTER HARDWARE.}

^{FROM THE RESEARCH DONE, SUBJECT IS IN THE TRADING OF COMPUTER PERIPHERALS.}

^{SUBJECT DEALS IN INTEL CPU, MOTHERBOARD HARD DISK DRIVE, KINGSTON & SAMSUNG MEMORY, ALL BRANDED PRODUCTS & UMAX PRODUCTS.}

^{THE GROUP HAS OFFICES IN INDIA, SINGAPORE, DUBAI, NEPAL, & REPRESENTATIVS IN SRI LANKA, PAKISTAN, BANGLADESH.}

^BRANDS:

^{*INTEL, SAMSUNG, SEAGATE, MAXTOR, SONY, PIONNER, IOMEGA, LOGITECH, HITACHI,}

^{KINGSTON, ETC.}

^{MARKET PRESENCE:}

^{*ASIA PACIFIC REGION, SOUTH ASIA REGION, WHICH INCLUDES DUBAI, NEPAL, SRI LANKA,}

^{PAKISTAN, ETC.}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 05/03/2007.}

^{THE IMMEDIATE AND ULTIMATE HOLDING COMPANY AS AT 31 MARCH 2006 WAS SPECVISION HOLDINGS PTE. LTD., A COMPANY INCORPORATED IN SINGAPORE (31 MARCH 2005: NEOTERIC OINFORMATIQUE LIMITED, A COMPANY INCORPORATE IN INDIA). THE SHAREHOLDING OF NEOTERIC INFOMATIQUE PVT LTD HAS BEEN REDUCED FROM 100% TO 25% AND SPECVISION HOLDINGS PTE. LTD. HAS ACQUIRED 75% SHAREHOLDING IN THE COMPANY DURING THE YEAR AND THUS HAS BECOME THE IMMEDIATE AND ULTIMATE HOLDING COMPANY.}

^{NUMBER OF EMPLOYEES (31 MARCH):}

^{- COMPANY - 2006: NOT AVAILABLE (2005: 4; 2004: 4)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{105 CECIL STREET}

^#05-01

^{THE OCTAGON}

^{SINGAPORE 069534}

^{DATE OF CHANGE OF ADDRESS: 24/01/2005}

^WEBSITE:

^{www.spec-vision.com/about.html (HOLDING COMPANY'S)}

^{www.neoteric-info.net}

^EMAIL:

^{NOT AVAILABLE}

MANAGEMENT

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

^{1) HARSHAD DIPCHAND SHAH, AN INDIAN}

^{- BASED IN INDIA.}

^{2) MAMIDANNA SURYKALI PRASAD, AN AMERICAN}

^{- BASED IN SINGAPORE.}

^{3) SHRENIK HARSHADKUMAR SHAH, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

^{4) KANWAL NAIN SAHNEY, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIP(S) IN:}

^{INGRAM MICRO SINGAPORE (SOUTH ASIA) PTE LTD}

^{SPECTRA INNOVATIONS PTE LTD}

^{5) PARAS HARSHAD, AN INDIAN}

^{- BASED IN INDIA.}

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

^{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%.}

^{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%.}

^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.}

^{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