MIRA INFORM REPORT

Report Date :

10.05.2007

IDENTIFICATION DETAILS

Name :	MAJUKO ENTERPRISE (S) PTE LTD
Registered Office :	^250 Tanjong Pagar Road, #03-02^, St Andrews Centre, Singapore – 088541
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^19/05/1984
Com. Reg. No.:	^198401838K
Legal Form :	^Pte Ltd
Line of Business :	Dealing in Agricultural and Industrial Commodities and General Trading

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 :	Slow
Litigation :	Clear

Subject Company

MAJUKO ENTERPRISE (S) PTE LTD

Line Of Business 

DEALING IN AGRICULTURAL AND INDUSTRIAL COMMODITIES AND GENERAL TRADING

Parent Company

--

Financial Elements

FY 2005

COMPANY

Sales : USD78,632,115

Networth : USD4,099,989

Paid-Up Capital : USD4,069,690

Net result : USD372,585

Net Margin(%) : 0.47

Return on Equity(%) : 9.09

Leverage Ratio : 1.77

COMPANY IDENTIFICATION

^{Subject Company: MAJUKO ENTERPRISE (S) PTE LTD}

^{Former Name: SEUNGAM CONSTRUCTION (S) PTE. LTD.}

^{Business Address: 250 TANJONG PAGAR ROAD}

^#03-02

^{ST ANDREWS CENTRE}

^{Town: SINGAPORE}

^{Postcode: 088541}

^{County: -}

^{Country: Singapore}

^{Telephone: 6236 0635}

^{Fax: 6538 9063}

^{ROC Number: 198401838K}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{SEUNGAM CONSTRUCTION (S) PTE. LTD. DATE OF CHANGE OF NAME: 06/04/1991}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 19/05/1984}

^{Previous Legal Form: -}

^{Summary year: 31/12/2005}

^{Sales: 78,632,115}

^{Net worth: 4,099,989}

^{Capital: -}

^{Paid-Up Capital: 4,069,690}

^{Employees: Not Available}

^{Net result: 372,585}

^{Share value: -}

^{Auditor: BDO RAFFLES}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 19/05/1984}

PRINCIPAL(S)

^{SUZIE SEO F5631575Q Director}

DIRECTOR(S)

^{SUZIE SEO F5631575Q Director}

^{Appointed on: 08/06/2001}

^{Street: 9 NATHAN ROAD}

^#12-04

^{REGENCY PARK}

^{Town: SINGAPORE}

^{Postcode: 248730}

^{Country: Singapore}

^{KELOTH RAJ KUMAR S1707500D Company Secretary}

^{Appointed on: 08/06/2001}

^{Street: 192 PASIR RIS STREET 12}

^#04-14

^{Town: SINGAPORE}

^{Postcode: 510192}

^{Country: Singapore}

^{YOON SUCK NAM SG0007211 Director}

^{Appointed on: 01/04/1991}

^{Street: 9 NATHAN ROAD}

^#12-04

^{REGENCY PARK}

^{Town: SINGAPORE}

^{Postcode: 248730}

^{Country: Singapore}

ACTIVITY(IES)

^{TRADING COMPANIES Code:22190}

^{COMMODITY TRADERS Code:5010}

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD AS AT 04/05/2007}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); GENERAL TRADING}

CHARGES

^{Date: 09/12/2003}

^{Comments: CHARGE NO: C200305925}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: HSBC PRIVATE BANK (SUISSE) SA}

^{Date: 21/11/2003}

^{Comments: CHARGE NO: C200305618}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: NATEXIS BANQUES POPULAIRES}

^{Date: 04/12/2002}

^{Comments: CHARGE NO: 200205342, 200205341}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: THE HONGKONG & SHANGHAI BANKING CORPORATION LTD}

^{Date: 25/09/2002}

^{Comments: CHARGE NO: 200204243}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: THE HONGKONG & SHANGHAI BANKING CORPORATION LTD}

^{Date: 12/08/2002}

^{Comments: CHARGE NO: 200203749}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: NATEXIS BANQUES POPULAIRES}

^{Date: 19/03/2001}

^{Comments: CHARGE NO: 200101279}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: BANK OF INDIA}

^{Date: 10/08/1999}

^{Comments: CHARGE NO: 199903157}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEEBANK B.A}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE HONGKONG & SHANGHAI BANKING CORPORATION LTD}

^{HSBC PRIVATE BANK (SUISSE) SA}

^{BANK OF INDIA}

^{COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.}

^{HABIB BANK LTD}

^{KOREA EXCHANGE BANK}

^{NATEXIS BANQUES POPULAIRES}

SHAREHOLDERS(S)

^{KIM HYUN JOON 27,195 Private Person}

^{Street: 12 AMBER GARDENS}

^#09-06

^{KING'S MANSION}

^{Town: SINGAPORE}

^{Postcode: 439959}

^{Country: Singapore}

^{YOON SUCK NAM 6,803,985 Private Person}

^{Street: 9 NATHAN ROAD}

^#12-04

^{REGENCY PARK}

^{Town: SINGAPORE}

^{Postcode: 248730}

^{Country: Singapore}

^{SUNG HYUN NAM 8,820 Private Person}

^{Street: NO 5/1302 GAEPO WOOSUNG 1 CHA}

^{APT DAECHI DONG KANGNAM KU}

^{Town: SEOUL}

^{Postcode: -}

^{Country: Korea, Republic of}

^{MAJUKO CORPORATION 218,702 Company}

^{Street: 478-5 KUNJA-DONG KWANGLIN-GU}

^{Town: SEOUL}

^{Postcode: -}

^{Country: Korea, Republic of}

SUBSIDIARY(IES)

^{MAJUKO AUSTRALIA PTY LTD}

^{MAJUKO BANGLADESH PVT LIMITED}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{Payments: SLOW}

^{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) SCOPE LIMITATION}

^{Date Account Lodged: 25/08/2006}

^{Balance Sheet Date: 31/12/2005 31/12/2004 31/12/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED CONSOLIDATED}

^{--- ASSETS}

^{Preliminary Exp - - 5,800,000}

^{Tangible Fixed Assets: 278,374 81,319 100,092}

^{Investments 3,405,558 125,352 49,461}

^{Total Fixed Assets: 3,683,932 206,671 5,949,553}

^{Receivables: 1,019,352 1,922,824 2,282,328}

^{Cash,Banks, Securities: 6,194,926 9,797,346 1,514,982}

^{Other current assets: 455,485 616,078 544,517}

^{Total Current Assets: 7,669,763 12,336,248 4,341,827}

^{TOTAL ASSETS: 11,353,695 12,542,919 10,291,380}

^{--- LIABILITIES}

^{Equity capital: 4,069,690 4,069,690 4,069,690}

^{Reserves: -149,840 -55,094 -2,964}

^{Profit & loss Account: 180,139 -192,446 -387,952}

^{Total Equity: 4,099,989 3,822,150 3,678,774}

^{Other long term Liab.: 1,096,361 1,500,000 1,500,000}

^{Total L/T Liabilities: 1,096,361 1,500,000 1,500,000}

^{Trade Creditors: 2,729,770 2,581,061 1,172,780}

^{Prepay. & Def. charges: 14,685 28,731 117,624}

^{Short term liabilities: 22,375 - -}

^{Due to Bank: 3,320,486 4,352,749 3,789,832}

^{Provisions: 47,289 - 9,630}

^{Other Short term Liab.: 22,740 258,228 22,740}

^{Total short term Liab.: 6,157,345 7,220,769 5,112,606}

^{TOTAL LIABILITIES: 7,253,706 8,720,769 6,612,606}

PROFIT & LOSS ACCOUNT

^{Net Sales 78,632,115 92,052,136 64,152,056}

^{Purchases,Sces & Other Goods: 76,872,642 91,054,919 -}

^{Gross Profit: 1,759,473 997,217 827,695}

^{Result of ordinary operations - - -342,180}

^{NET RESULT BEFORE TAX: 422,585 195,506 -370,366}

^{Tax: 50,000 - -14,770}

^{Net income/loss year: 372,585 195,506 -355,596}

^{Interest Paid: 92,660 61,275 28,186}

^{Depreciation: 47,466 19,960 32,994}

^{Directors Emoluments: 130,559 176,780 169,929}

^{Wages and Salaries: 439,735 417,934 262,437}

^{Financial Income: 177,533 123,462 214,521}

RATIOS

^{31/12/2005 31/12/2004 31/12/2003}

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

^{Net Margin(%): 0.47 0.21 -0.55}

^{Return on Equity(%): 9.09 5.12 -9.67}

^{Return on Assets(%): 3.28 1.56 -3.46}

^{Net Working capital: 1512418.00 5115479.00 -770779.00}

^{Cash Ratio: 1.01 1.36 0.30}

^{Quick Ratio: 1.17 1.62 0.74}

^{Current ratio: 1.25 1.71 0.85}

^{Receivables Turnover: 4.67 7.52 12.81}

^{Leverage Ratio: 1.77 2.28 1.80}

^{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

^NOTE:

^{THE FINANCIAL STATEMENTS FOR 2003 ARE PRESENTED IN SINGAPORE DOLLARS.}

^{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 7.27% FROM USD3,822,150 IN 2004 TO S$4,099,989 IN 2005.}

^{THIS WAS DUE TO THE ACCUMULATED PROFIT OF USD180,139 IN 2005, AS COMPARED TO THE ACCUMULATED LOSSES OF USD192,446 IN 2004.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY AMOUNTS DUE TO BANKS WHICH MADE UP 53.93% (2004: 60.28%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO USD3,320,486 (2004: USD4,352,749). THE BREAKDOWN IS AS FOLLOWS:}

^{-BANK OVERDRAFT (SECURED) - 2005: USD14,343 (2004: USD10,419)}

^{-BANK LOANS (SECURED) - 2005: USD2,823,914 (2004: USD3,113,151)}

^{-TRUST RECEIPTS (SECURED) - 2005: - (2004: USD287,500)}

^{-TRUST RECEIPTS (UNSECURED) - 2005: USD482,229 (2004: USD941,679)}

^{TRADE CREDITORS ROSE BY 5.76% TO USD2,729,770 (2004: USD2,581,061).}

^{SUBJECT'S LONG TERM LIABILITIES, WHICH FELL BY 26.91% TO USD1,096,361 (2004: USD1,500,000), CONSISTS OF THE FOLLOWING:}

^{-FINANCE LEASE LIABILITIES - 2005:USD117,613 (2004: - )}

^{-LOAN FROM A RELATED PARTY - 2005: USD978,748 (2004: USD1,500,000)}

^{IN ALL, LEVERAGE RATIO FELL FROM 2.28 TIMES TO 1.77 TIMES AS A RESULT OF A RISE IN TOTAL EQUITY AND A FALL IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE EVEN THOUGH NET WORKING CAPITAL FELL BY 70.43% TO USD1,512,418 (2004: USD5,115,479).}

^{CURRENT RATIO FELL TO 1.25 TIMES, DOWN FROM 1.71 TIMES AND QUICK RATIO DECREASED TO 1.17 TIMES FROM 1.62 TIMES IN 2004.}

^{PROFITABILITY:}

^{REVENUE POSTED A DECREASE OF 14.58% FROM USD92,052,136 IN 2004 TO USD78,632,115 BUT NET PROFIT ROSE BY 90.57% TO USD372,585 (2004: USD195,506).}

^{THIS COULD BE DUE TO HIGHER GROSS MARGIN OF 2.24% IN 2005 (2004: 1.08%).}

^{HENCE, NET MARGIN ROSE TO 0.47% (2004: 0.21%).}

^REVENUE:

^{-SALE OF COMMODITIES - 2005: USD78,632,115 (2004: USD92,015,136)}

^{-RENDERING OF SERVICES - 2005: - (2004: USD37,000)}

^{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 5.56 TIMES}

^{(2004: 4.19 TIMES).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{BANK BORROWINGS}

^{A) BANK OVERDRAFT IS SECURED BY FIXED DEPOSITS PLACED BY THE COMPANY WITH THE BANK}

^{B) BANK LOANS ARE SECURED/GUARANTEED BY FIXED DEPOSITS PLACED BY THE COMPANY WITH}

^{THE BANK AND PERSONAL GUARANTEE FROM A DIRECTOR/SHAREHOLDER OF THE COMPANY}

^{C) TRUST RECEIPTS ARE SECURED AGAINST FIXED DEPOSITS PLACED WITH THE BANKS}

^{D) TRUST RECEIPTS ARE GUARANTEED BY A DIRECTOR / SHAREHOLDER OF THE COMPANY}

^{CONTINGENT LIABILITIES}

^{PERFORMANCE GUARANTEES - 2005: USD3,728,811 (2004: USD3,500,933)}

^{LETTERS OF CREDIT IN FORCE - 2005: USD3,962,245 (2004: USD4,440,350)}

^{DISCOUNTED BILLS WITH RECOURSE - 2005: USD34,302 (2004: USD759,752)}

^{THE ABOVE ARE SECURED BY FIXED DEPOSITS PLACED BY THE COMPANY WITH BANKS AND GUARANTEED BY A DIRECTOR / SHAREHOLDER OF THE COMPANY.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 19/05/1984 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "SEUNGAM CONTRUCTION (S) PTE. LTD.".}

^{SUBSEQUENTLY ON 06/04/1991, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "MAJUKO ENTERPRISE (S) PTE LTD".}

^{AS AT 04/05/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 7,058,702 SHARES, OF A VALUE OF S$7,058,702.}

^{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); GENERAL}

^TRADING

^{2) COMMODITIES BROKER}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THAT OF DEALING IN AGRICULTURAL AND INDUSTRIAL COMMODITIES AND GENERAL TRADING.}

^{THE COMPANY HAS FOREIGN BRANCHES IN HO CHI MINH CITY (VIETNAM) AND YANGON (MYANMAR) AND A REPRESENTATIVE OFFICE IN AHMEDABAD (INDIA).}

^{FROM THE RESEARCH DONE, SUBJECT IS IN THE TRADING OF AGRICULTURAL AND INDUSTRIAL COMMODITIES. SUBJECT HAS ITS OWN PULSE PACKING & CLEANING FACILITIES IN MYANMAR AND WILL CONTINUE TO INVEST IN AUSTRALIA AND CANADA PULSE INDUSTRY.}

^PRODUCTS:

^{*AGRICULTURAL COMMODITIES}

^{-PULSE AND PEA LENTIL (MYANMAR, AUSTRALIA, CHINA, CANADA ORIGIN), SPICE, WHEAT,}

^{NATURAL RUBBER, FEED AND OIL SEEDS.}

^{*INDUSTRIAL COMMODITIES:}

^{-PLASTICS, CHEMICALS, PAPER, FERTILIZER, PLYWOOD AND STEEL PRODUCTS.}

^{IMPORTING COUNTRIES:}

^{*MYANMAR, VIETNAM, CHINA, INDIA, PAKISTAN, AND AUSTRALIA.}

^{INTERNATIONAL COUNTER TRADING FROM SINGAPORE:}

^{*KOREA, JAPAN, CHINA, TAIWAN, THAILAND, MALAYSIA, INDONESIA, PHILIPPINE, VIETNAM,}

^{INDIA, PAKISTAN, BANGLADESH, DUBAI, UK, HOLLAND, AND ETC.}

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

^{*SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^{*SINGAPORE BUSINESS FEDERATION}

^{ACCORDING TO THE TELE-INTERVIEW CONDUCTED ON 09/05/2007, THE FOLLOWING INFORMATION WAS GATHERED:}

^{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:}

^{*COMPANY - 2005: NOT AVAIALBLE (2004: NOT AVAILABLE)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{250 TANJONG PAGAR ROAD}

^#03-02

^{ST ANDREWS CENTRE}

^{SINGAPORE 088541}

^{DATE OF CHANGE OF ADDRESS: 15/07/2001}

^WEBSITE:

^{www.majuko.com}

^EMAIL:

^{enquiry@majuko.com.sg}

MANAGEMENT

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

^{1) SUZIE SEO, AN AMERICAN}

^{- BASED IN SINGAPORE.}

^{2) YOON SUCK NAM, A SOUTH KOREAN}

^{- BASED IN SINGAPORE.}

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