MIRA INFORM REPORT

Report Date :

22.05.2007

IDENTIFICATION DETAILS

Name :	REGIONAL RUBBER TRADING CO. PTE LTD
Registered Office :	^65 Chulia Street, # 44-01^, Ocbc Centre, Singapore^– 049513
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^23/03/2001
Com. Reg. No.:	^200101933Z
Legal Form :	^Pte Ltd
Line of Business :	Rubber and Latex Trading

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

REGIONAL RUBBER TRADING CO. PTE LTD

Line Of Business 

RUBBER AND LATEX TRADING

Parent Company

-

Financial Elements

FY2005

COMPANY

Sales : S$1,118,283,187

Networth : S$ 80,225,931

Paid-Up Capital : S$ 50,000,000

Net result : S$ 6,413,264

Net Margin(%) : 0.57

Return on Equity(%) : 7.99

Leverage Ratio : 0.96 TIMES

COMPANY IDENTIFICATION

^{Subject Company : REGIONAL RUBBER TRADING CO. PTE LTD}

^{Former Name : -}

^{Business Address : 65 CHULIA STREET}

^#44-01

^{OCBC CENTRE}

^{Town : SINGAPORE}

^{Postcode : 049513}

^{County : -}

^{Country : Singapore}

^{Telephone : 6535 4055}

^{Fax : 6535 3552}

^{ROC Number : 200101933Z}

^{Reg. Town : -}

SUMMARY

^{All amounts in this report are in : SGD}

^{Legal Form : Pte Ltd}

^{Date Inc. : 23/03/2001}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : 1,118,283,187}

^{Net Worth : 80,225,931}

^{Paid-Up Capital : 50,000,000}

^{Employees : -}

^{Net Result : 6,413,264}

^{Auditor : EVAN WONG & COMPANY}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 23/03/2001}

PRINCIPAL(S)

^{LIM KOK ENG S0158706D Director}

DIRECTOR(S)

^{LIM KOK ENG S0158706D Director}

^{Appointed on : 09/04/2001}

^{Street : 236 LORONG 1 TOA PAYOH}

^#03-74

^{Town : SINGAPORE}

^{Postcode : 310236}

^{Country : Singapore}

^{FONG SOON YONG S0168896J Company Secretary}

^{Appointed on : 30/03/2001}

^{Street : 10 JEDBURGH GARDENS}

^{FRANKEL ESTATE}

^{Town : SINGAPORE}

^{Postcode : 457075}

^{Country : Singapore}

^{CHONG KWOK KIAN S0280308I Company Secretary}

^{Appointed on : 30/03/2001}

^{Street : 7 SECOND STREET}

^{Town : SINGAPORE}

^{Postcode : 456326}

^{Country : Singapore}

^{CHONG KWOK KIAN S0280308I Director}

^{Appointed on : 09/04/2001}

^{Street : 7 SECOND STREET}

^{Town : SINGAPORE}

^{Postcode : 456326}

^{Country : Singapore}

^{HUANG THIAY SHERNG S0289427J Director}

^{Appointed on : 23/03/2001}

^{Street : 4 YARROW GARDENS}

^{FRANKEL ESTATE}

^{Town : SINGAPORE}

^{Postcode : 455009}

^{Country : Singapore}

^{HUANG THIAY SHERNG S0289427J Manager}

^{Appointed on : 09/04/2001}

^{Street : 4 YARROW GARDENS}

^{FRANKEL ESTATE}

^{Town : SINGAPORE}

^{Postcode : 455009}

^{Country : Singapore}

^{TAN KHIAM HOCK S0507950J Director}

^{Appointed on : 23/03/2001}

^{Street : 201 BISHAN STREET 23}

^#06-471

^{Town : SINGAPORE}

^{Postcode : 570201}

^{Country : Singapore}

ACTIVITY (IES)

^{IMPORTERS And EXPORTERS Code: 11760}

^{RUBBER BROKERS And DEALERS Code: 18680}

^{BASED ON ACRA'S RECORD AS AT 16/05/2007}

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

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 Databases

SHAREHOLDERS(S)

^{LEE RUBBER COMPANY (PTE) LIMITED 17,500,000 Company}

^{Street : 65 CHULIA STREET}

^#44-01

^{OCBC CENTRE}

^{Town : SINGAPORE}

^{Postcode : 049513}

^{Country : Singapore}

^{LEE LATEX (PTE) LIMITED 5,000,000 Company}

^{Street : 65 CHULIA STREET}

^#44-01

^{OCBC CENTRE}

^{Town : SINGAPORE}

^{Postcode : 049513}

^{Country : Singapore}

^{TROPICAL PRODUCE COMPANY (PTE) LIMITED 5,000,000 Company}

^{Street : 65 CHULIA STREET}

^#44-01

^{OCBC CENTRE}

^{Town : SINGAPORE}

^{Postcode : 049513}

^{Country : Singapore}

^{KOTA TRADING COMPANY SDN BHD 5,000,000 Company}

^{Street : 2ND FLOOR, OCBC BUILDING}

^{JOHOR BAHRU}

^{Town : JOHOR}

^{Postcode : -}

^{Country : Malaysia}

^{SINGAPORE INVESTMENTS (PTE) LIMITED 17,500,000 Company}

^{Street : 65 CHULIA STREET}

^#44-01

^{OCBC CENTRE}

^{Town : SINGAPORE}

^{Postcode : 049513}

^{Country : Singapore}

SUBSIDIARY (IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality : AVERAGE

Liquidity : ABUNDANT

Payments : REGULAR

Trend : LEVEL

Financial Situation : GOOD

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: 27/07/2006}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp 24,000 24,000}

^{Tangible Fixed Assets: 156,278 95,435}

^{Investments 20,000 20,000}

^{Total Fixed Assets: 200,278 139,435}

^{Inventories: 12,000,747 16,389,115}

^{Receivables: 107,404,161 67,693,641}

^{Short Term Fin. Assets: 649,681}

^{Cash, Banks, Securities: 24,962,633 24,255,907}

^{Other current assets: 12,317,262 7,673,147}

^{Total Current Assets: 157,334,484 116,011,810}

^{TOTAL ASSETS: 157,534,762 116,151,245}

^{--- LIABILITIES ---}

^{Equity capital: 50,000,000 50,000,000}

^{Profit & loss Account: 30,225,931 22,626,133}

^{Total Equity: 80,225,931 72,626,133}

^{L/T deferred taxes: 13,000 4,000}

^{Total L/T Liabilities: 13,000 4,000}

^{Trade Creditors: 39,046,618 26,282,468}

^{Advanced payments: 222,301 345,499}

^{Due to Bank: 34,272,445 12,258,750}

^{Provisions: 1,437,072 1,631,550}

^{Other Short term Liab.: 2,317,395 3,002,845}

^{Total short term Liab.: 77,295,831 43,521,112}

^{TOTAL LIABILITIES: 77,308,831 43,525,112}

PROFIT & LOSS ACCOUNT

^{Net Sales 1,118,283,187 984,372,869}

^{Purchases,Sces & Other Goods: 1,095,426,489 958,764,558}

^{Gross Profit: 22,856,698 25,608,311}

^{Result of ordinary operations 8,633,476 12,256,970}

^{NET RESULT BEFORE TAX: 7,822,264 11,865,408}

^{Tax : 1,409,000 1,594,945}

^{Net income/loss year: 6,413,264 10,270,463}

^{Interest Paid: 811,212 391,562}

^{Depreciation: 20,963 12,782}

^{Dividends: 400,000 400,000}

^{Directors Emoluments: 633,860 1,129,900}

^{Wages and Salaries: 2,200,140 2,794,100}

^{Financial Income: 349,758 114,338}

RATIOS

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

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

^{Stock / Turnover(%): 0.01 0.02}

^{Net Margin(%): 0.57 1.04}

^{Return on Equity(%): 7.99 14.14}

^{Return on Assets(%): 4.07 8.84}

^{Dividends Coverage: 16.03 25.68}

^{Net Working capital: 80038653.00 72490698.00}

^{Cash Ratio: 0.32 0.56}

^{Quick Ratio: 1.71 2.11}

^{Current ratio: 2.04 2.67}

^{Receivables Turnover: 34.58 24.76}

^{Leverage Ratio: 0.96 0.60}

^{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}

^{Dividends Coverage : Net income loss year/Dividends}

^{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 CONDITION OF THE COMPANY WAS DEEMED TO BE FAIR TO STABLE IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS FAIRLY SOUND WITH TOTAL EQUITY RISING BY 10.46% AMOUNTING TO S$80,225,931 (2004: S$72,626,133). THIS WAS CONTRIBUTED BY HIGHER RETAINED EARNINGS BROUGHT FORWARD OF S$30,225,931 (2004: S$22,626,133).}

^LEVERAGE:

^{THE LEVERAGE RATIO HAD GONE UP TO 0.96 TIMES (2004: 0.60 TIMES), INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE MORE SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS INCREASED BY 48.57%, TOTALLING S$39,046,618 (2004: S$26,282,468). AMOUNT DUE TO BANKS OF S$34,272,445 (2004: S$12,258,750) COMPRISED OF:}

^{* BANK OVERDRAFTS, UNSECURED OF S$992,445 (2004: NIL)}

^{* BANK LOANS OF S$33,280,000 (2004: S$12,258,750)}

^{OTHER SHORT TERM LIABILITIES OF S$2,317,395 (2004: S$3,002,845) REPRESENTED:}

^{* DERIVATIVE FINANCIAL INSTRUMENTS OF S$274,462 (2004: NIL)}

^{* ANNUAL PRODUCTIVITY INCENTIVE OF S$987,780 (2004: S$2,165,544)}

^{* MANAGEMENT FEE PAYABLE TO A RELATED PARTY OF S$569,384 (2004: S$648,207)}

^{* SUNDRY PAYABLES OF S$485,769 (2004: S$189,094)}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE COMPANY WAS HEALTHY. BOTH THE QUICK AND CURRENT RATIOS WERE SUFFICIENT AT 1.71 TIMES (2004: 2.11 TIMES) AND 2.04 TIMES (2004: 2.67 TIMES) RESPECTIVELY.}

^{THIS WAS IN TANDEM WITH THE NET WORKING CAPITAL, WHICH REGISTERED HIGHER AT S$80,038,653 (2004: S$72,490,698).}

^{PROFITABILITY:}

^{REVENUE FOR FY2005 ROSE BY 13.60%, TOTALLING S$1,118,283,187 (2004: S$984,372,869). HOWEVER, NET INCOME DECLINED BY 37.56%, AMOUNTING TO S$6,413,264 (2004: S$10,270,463).}

^{THUS, NET MARGIN STOOD LOWER AT 0.57% (2004: 1.04%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE HEALTHY LIQUIDITY, IMPROVED REVENUES AND IF TRADE RECEIVABLES WERE FORTHCOMING.}

^{HOWEVER, AVERAGE COLLECTION PERIOD LENGTHENED TO 35 DAYS (2004: 25 DAYS).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{SUBSEQUENT EVENT}

^{SUBSEQUENT TO YEAR END, THE DIRECTORS RECOMMENDED A FINAL DIVIDEND OF 1 CENT PER ORDINARY SHARES LESS SINGAPORE TAX OF 20%, AMOUNTING TO S$400,000, TO BE PAID FOR THE YEAR ENDED 31 DECEMBER 2005, SUBJECT TO APPROVAL AT THE FORTHCOMING ANNUAL GENERAL MEETING OF THE COMPANY.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 23/03/2001 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "REGIONAL RUBBER TRADING CO. PTE LTD".}

^{AS AT 16/05/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 50,000,000 SHARES OF A VALUE OF S$50,000,000.}

^{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); RUBBER AND LATEX TRADING}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THAT OF RUBBER AND LATEX TRADING.}

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

^{SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: RUBBER - CRUDE.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* MANUFACTURER & SUPPLIER OF INDUSTRIAL RUBBER AND FOAM PRODUCTS.}

^{* SPECIALISE IN CUSTOM RUBBER GASKETS, EXTRUDED RUBBER, MOLDED RUBBER, & SHEET RUBBER MANUFACTURED TO YOUR SPECIFIC REQUIREMENTS}

^{TERMS OF PAYMENT:}

^{* TRADE & OTHER RECEIVABLES: NOT AVAILABLE}

^{* TRADE & OTHER PAYABLES : 30-90 DAYS TERM}

^{THERE ARE ABOUT 40 EMPLOYEES IN THE COMPANY.}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE ON 22/05/2007.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{65 CHULIA STREET}

^#44-01

^{OCBC CENTRE}

^{SINGAPORE 049513}

^{DATE OF CHANGE OF ADDRESS: -}

^{-- RENTED PREMISE}

^{-- PREMISE OWNED BY: OCBC CENTRE PRIVATE LIMITED}

^WEBSITE:

^{* http://www.regionalrubber.com}

^EMAIL:

^{* sales@regionalrubber.com}

MANAGEMENT

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

^{1) LIM KOK ENG, A SINGAPOREAN}

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

^{2) CHONG KWOK KIAN, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE}

^{LEE PINEAPPLE COMPANY PTE LTD}

^{SINGAPORE ENGINEERS (PRIVATE) LIMITED}

^{3) HUANG THIAY SHERNG, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE}

^{LEE RUBBER COMPANY (PTE) LIMITED}

^{LEE PINEAPPLE COMPANY PTE LTD}

^{SINGAPORE ENGINEERS (PRIVATE) LIMITED}

^{LEE FOUNDATION}

^{4) TAN KHIAM HOCK, A SINGAPOREAN}

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

Singapore’s Country Rating 2007

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