MIRA INFORM REPORT

Report Date :

21.03.2007

IDENTIFICATION DETAILS

Name :	ELECTRONIC STUDIO PTE LTD

Registered Office :	^{77 High Street, #04-05, High Street Plaza, Singapore - 179433}

Country :	Singapore

Financials (as on) :	31.10.2005

Date of Incorporation :	^04/03/1994

Com. Reg. No.:	^199401522N

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Importers and Exporters of Electrical and Electronic Goods

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate

Payment Behaviour :	Unknown

Litigation :	Clear

Subject Company

ELECTRONIC STUDIO PTE LTD

Line Of Business

IMPORTERS AND EXPORTERS OF ELECTRICAL AND ELECTRONIC GOODS

Parent Company

Financial Elements

FY 2005

COMPANY

Sales : -

Networth : S$4,372

Paid-Up Capital : S$4

Net result : S$-1,350

Net Margin(%) : -

Return on Equity(%) : 30.88 (NOTE: POSITIVE ROE DUE TO OFF SET OF NEGATIVE EARNINGS AND

NEGATIVE TOTAL EQUITY)

Leverage Ratio : -2.50

Rating

Credit Rating : Up To Sing $ 10000

COMPANY IDENTIFICATION

^{Subject Company : ELECTRONIC STUDIO PTE LTD}

^{Former Name :
-}

^{Business Address : 77 HIGH STREET}

^#04-05

^{HIGH STREET PLAZA}

^{Town :
SINGAPORE}

^{Postcode :
179433}

^{County :
-}

^{Country :
Singapore}

^{Telephone :
6338 8437}

^{Fax :
6336 1440}

^{ROC Number :
199401522N}

^{Reg. Town :
-}

SUMMARY

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

^{Legal Form :
Exempt Pte Ltd}

^{Date Inc. :
04/03/1994}

^{Previous Legal Form : -}

^{Summary year :
31/10/2005}

^{Sales :
-}

^{Net worth :
-4,372}

^{Capital :
-}

^{Paid-Up Capital :
4}

^{Employees :
3}

^{Net result :
-1,350}

^{Share value :
-}

^{Auditor :
V.P. KUMARAN & CO.}

REFERENCES

^{Litigation :
No}

^{Company status: TRADING}

^{Started :
04/03/1994}

PRINCIPAL(S)

^{JANAK RAJ PAWA S0595307C Director}

DIRECTOR(S)

^{JANAK RAJ PAWA S0595307C Director}

^{Appointed on: 04/03/1994}

^{Street: 27
LUCKY VIEW}

^{Town: SINGAPORE}

^{Postcode: 467459}

^{Country: Singapore}

^{AVNESH KUMAR PAWA S1050850I Director}

^{Appointed on: 04/03/1994}

^{Street: 57U CRESCENT ROAD}

^{Town: SINGAPORE}

^{Postcode: 439369}

^{Country: Singapore}

^{AVNESH KUMAR PAWA S1050850I Company Secretary}

^{Appointed on: 30/03/1994}

^{Street: 57U CRESCENT ROAD}

^{Town: SINGAPORE}

^{Postcode: 439369}

^{Country: Singapore}

^{PARDEEP KUMAR PAWA S1198904G Director}

^{Appointed on: 04/03/1994}

^{Street: 97 BRANKSOME ROAD}

^{Town: SINGAPORE}

^{Postcode: 439619}

^{Country: Singapore}

ACTIVITY(IES)

^{ELECTRIC EQUIPMENT Code:7390}

^{BASED ON ACRA'S RECORD AS AT 16/03/2007}

^{1) WHOLESALE OF TELECOMMUNICATIONS EQUIPMENT}

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

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

BANK OF INDIA

SHAREHOLDERS(S)

^{JANAK RAJ PAWA 1 Private Person}

^{Street: 27
LUCKY VIEW}

^{Town: SINGAPORE}

^{Postcode: 467459}

^{Country: Singapore}

^{AVNESH KUMAR PAWA 1 Private
Person}

^{Street: 57U CRESCENT ROAD}

^{Town: SINGAPORE}

^{Postcode: 439369}

^{Country: Singapore}

^{PARDEEP KUMAR PAWA 1 Private Person}

^{Street: 97 BRANKSOME ROAD}

^{Town: SINGAPORE}

^{Postcode: 439619}

^{Country: Singapore}

^{KRISHNA RANI PAWA (ESTATE OF) 1
Private Person}

^{Street: 27 LUCKY VIEW}

^{Town: SINGAPORE}

^{Postcode: 467459}

^{Country: Singapore}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

^{Liquidity: LACKING}

^{Payments: UNKNOWN}

^{Trend: LEVEL}

^{Financial Situation: BAD}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 31/05/2006}

^{Balance Sheet Date: 31/10/2005 31/10/2004}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^---
ASSETS

^{Receivables: 424 424}

^{Cash,Banks,Securities: 6,155 1,901}

^{Total Current Assets}^{: 6,579 2,325}

^{TOTAL ASSETS: 6,579 2,325}

^{---
LIABILITIES}

^{Equity capital: 4 4}

^{Profit & loss
Account: -4,376 -3,026}

^{Total Equity: -4,372 -3,022}

^{Prepay. & Def. charges: 1,350 1,350}

^{Other Short term
Liab.: 9,601 3,997}

^{Total short term Liab}^{.: 10,951 5,347}

^{TOTAL LIABILITIES: 10,951 5,347}

PROFIT & LOSS ACCOUNT

^{Net Sales - -}

^{NET RESULT BEFORE
TAX: -1,350 -1,423}

^{Tax: - -}

^{Net income/loss year: -1,350 -1,423}

RATIOS

^{31/10/2005
31/10/2004}

^{Return on Equity(%): 30.88 47.09}

^{Return on Assets(%): -20.52 -61.20}

^{Net Working capital: -4372.00 -3022.00}

^{Cash Ratio: 0.56 0.36}

^{Quick Ratio: 0.60 0.43}

^{Current ratio: 0.60 0.43}

^{Leverage Ratio: -2.50
-1.77}

^{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}

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

FINANCIAL COMMENTS

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED INADEQUATE
WITH NET WORTH IN} ^{NEGATIVE REGION, AND WORSENING BY 44.67% TO S$4,372 (2004:
S$-3,022).}

^{THIS WAS DUE TO HIGHER ACCUMULATED LOSSES OF
S$4,376}

^{(2004: ACCUMULATED LOSSES OF S$3,026); A RISE
OF 44.61% FROM THE} ^{PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY
FINANCED BY AMOUNT DUE TO A} ^{DIRECTOR WHICH MADE UP 87.67% (2004: 74.75%) OF THE TOTAL CURRENT} ^{LIABILITIES AND AMOUNTED TO S$9,601 (2004: S$3,997).}

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

^{IN ALL, LEVERAGE RATIO WAS IN NEGATIVE REGION
AND WORSENED TO 2.50} ^{TIMES (2004: -1.77 TIMES). THIS WAS DUE TO SUBJECT'S NEGATIVE} ^{TOTAL EQUITY AND THE RELATIVE INCREASE IN ITS TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS
INADEQUATE AS SEEN FROM} ^{THE NEGATIVE NET WORKING CAPITAL, WHICH WORSENED BY 44.67% TO} ^{S$4,372 (2004: S$-3,022).}

^{THIS COULD INDICATE THAT SUBJECT MAY FACE
DIFFICULTIES IN FULFILLING} ^{ITS FUTURE SHORT TERM OBLIGATIONS.}

^{CURRENT RATIO AND QUICK RATIO BOTH ROSE TO
0.60 TIMES, UP FROM 0.43} ^{TIMES IN 2004.}

^{CASH AND CASH EQUIVALENTS ROSE BY 2.24 TIMES
TO S$6,155} ^{(2004:
S$1,901).}

^{PROFITABILITY:}

^{SUBJECT DID NOT POST ANY REVENUE DURING THE
FINANCIAL YEAR AS ITS WAS} ^{DORMANT. HOWEVER, IT CONTINUED TO SUFFER A NET LOSS, WHICH
NARROWED} ^{BY 5.13% TO S$1,350 (2004: NET LOSS OF S$1,423).}

^{NOTES TO THE
FINANCIAL STATEMENTS}

^{GOING CONCERN}

^{THE COMPANY HAS EQUITY DEFICIENCY AT 31
OCTOBER 2005 WHICH INDICATES} ^{THE EXISTENCE OF UNCERTAINTY AS TO THE ABILITY OF THE COMPANY TO} ^{CONTINUE AS A GOING CONCERN.}

^{THE FINANCIAL STATEMENTS HAVE BEEN PREPARED
ASSUMING THAT THE COMPANY} ^{WILL CONTINUE AS A GOING CONCERN AND DO NOT INCLUDE ANY
ADJUSTMENTS} ^{RELATING TO THE RECOVERABILITY AND CLASSIFICATION OF
REPORTED ASSET} ^{AMOUNT OR THE AMOUNT AND CLASSIFICATION OF
LIABILITIES THAT MIGHT} ^{RESULT IF THE GOING CONCERN BASIS IS FOUND TO
BE INAPPROPRIATE.}

^{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} ^{04/03/1994
AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER} ^{THE PRESENT
NAMESTYLE OF "ELECTRONIC STUDIO PTE LTD".}

^{AS AT 16/03/2007, THE COMPANY HAS AN ISSUED
AND PAID-UP CAPITAL OF} ^{4 SHARES, OF A VALUE OF S$4.}

^{PRINCIPAL
ACTIVITIES:}

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

^{1) WHOLESALE OF TELECOMMUNICATIONS EQUIPMENT}

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

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW,
THE PRINCIPAL ACTIVITIES} ^{OF THE COMPANY ARE THOSE OF IMPORTERS AND EXPORTERS OF ELECTRICAL
AND} ^{ELECTRONIC GOODS. THE COMPANY WAS DORMANT DURING THE FINANCIAL
YEAR.}

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

^{TERMS OF PAYMENT}

^{- TRADE AND OTHER RECIEVABLES: 30-90 DAYS
TERMS}

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

^{ACCORDING TO THE TELE-INTERVIEW CONDUCTED ON
20/03/2007, THE} ^{FOLLOWING
INFORMATION WAS GATHERED:}

^ACTIVITIES

^{- WHOLESALE AND RETAIL OF ELECTRONIC
EQUIPMENT (EG. TELEVISIONS ETC.)}

^{- SUBJECT'S PERSONNEL CONFIRMED THAT THE
COMPANY IS CURRENTLY TRADING.}

^{SUBJECT'S PERSONNEL CONFIRMED THE BUSINESS
ADDRESS AND CONTACT} ^{NUMBERS OF THE COMPANY, BUT DECLINED TO PROVIDE MORE INFORMATION,} ^{HENCE NO OTHER TRADE INFORMATION WAS MADE AVAILABLE VIA THE} ^{TELE-INTERVIEW.}

^{NUMBER OF
EMPLOYEES (31 OCTOBER)}

^{- COMPANY - 2005: 3 (2004: 4)}

^{REGISTERED AND
BUSINESS ADDRESS:}

^{77 HIGH STREET}

^#04-05

^{HIGH STREET PLAZA}

^{SINGAPORE 179433}

^{DATE OF CHANGE OF ADDRESS: -}

^{- OFFICE}

^{- RENTED PREMISE}

^{- OWNED BY:
KRISHNA RANI PAWA}

^{JANAK RAJ PAWA (DIRECTOR/SHAREHOLDER)}

^{PARDEEP KUMAR PAWA (DIRECTOR/SHAREHOLDER)}

^{AVNESH KUMAR (DIRECTOR/SHAREHOLDER)}

^{OTHER BUSINESS
ADDRESSES:}

^{77 HIGH STREET}

^#01-06

^{HIGH STREET PLAZA}

^{SINGAPORE 179433}

^{- RETAIL SHOP}

^{- AS PROVIDED BY SUBJECT'S PERSONNEL}

^{2 VEERASAMY ROAD}

^{SINGAPORE 207305}

^{- RETAIL SHOP}

^{- AS PROVIDED BY SUBJECT'S PERSONNEL}

^WEBSITE:

^{NOT AVAILABLE}

^EMAIL:

^{NOT AVAILABLE}

MANAGEMENT

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

^{1) JANAK RAJ PAWA, A SINGAPOREAN}

^{- HOLDS
OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{PAWA BROTHERS TRADING PTE LTD}

^{2) AVNESH KUMAR PAWA, A SINGAPOREAN}

^{-
HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{PAWA BROTHERS TRADING PTE LTD}

^{3) PARDEEP KUMAR PAWA, A SINGAPOREAN}

^{-
HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{PAWA BROTHERS TRADING PTE LTD}

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

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