MIRA INFORM REPORT

Report Date :

13.11.2007

IDENTIFICATION DETAILS

Name :	BUCKMAN LABORATORIES (ASIA) PTE LTD

Formerly Known as :	^{BUCKMAN LABORATORIES PTE LTD}

Registered Office :	^{33 TUAS SOUTH STREET 1}

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	13.09.1991

Com. Reg. No.:	199104610M

Legal Form :	Pte Ltd

Line of Business :	Manufacturing And Trading In Chemical Products, Primarily To The Pulp And Paper, Water Treatment, Paint And Plastics, And Leather Industries In Asia

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 :	Regular

Litigation :	Clear

Subject Company : BUCKMAN LABORATORIES (ASIA) PTE LTD

Line Of Business : MANUFACTURING AND TRADING IN CHEMICAL PRODUCTS, PRIMARILY TO THE

PULP AND PAPER, WATER TREATMENT, PAINT AND PLASTICS, AND LEATHER

INDUSTRIES IN ASIA

Parent Company : BULAB HOLDINGS INC.

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

COMPANY

Sales : US$25,649,636

Networth : US$3,067,878

Paid-Up Capital : US$3,196,996

Net result : US$19,501

Net Margin(%) : 0.08

Return on Equity(%) : 0.64

Leverage Ratio : 3.34

COMPANY IDENTIFICATION

^{Subject Company : BUCKMAN LABORATORIES (ASIA) PTE LTD}

^{Former Name : BUCKMAN LABORATORIES PTE LTD}

^{Business Address : 33 TUAS SOUTH STREET 1}

^{Town : SINGAPORE}

^{Postcode : 638038}

^{County : -}

^{Country : Singapore}

^{Telephone : 6863 4100}

^{Fax : 6863 4122}

^{ROC Number : 199104610M}

^{Reg.
Town: -}

PREVIOUS IDENTIFICATION

^{BUCKMAN LABORATORIES PTE LTD}

^{DATE OF CHANGE OF NAME: 14/07/1995}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 13/09/1991}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : 25,649,636}

^{Networth : 3,067,878}

^{Capital : -}

^{Paid-Up Capital : 3,196,996}

^{Employees : 87}

^{Net
result : 19,501}

^{Share value : -}

^{AUDITOR: BDO RAFFLES}

^{Litigation
: Yes}

^{Company status : TRADING}

^{Started :
13/09/1991}

PRINCIPAL(S)

^{ROBERT LEIGH FLEETWOOD MANN
G5714842Q Managing Director}

DIRECTOR(S)

^{STEVEN BRUCE BUCKMAN
D1003176 Director}

^{Appointed on : 20/09/1991}

^{Street : 8408 RIVERTRAIL COVE}

^CORDOVA

^{Town : TN}

^{Postcode : 38018}

^{Country : United States}

^{EDSON PORTO PEREDO
CK718431 Director}

^{Appointed on : 22/11/2000}

^{Street : 8811 CLASSIC DR}

^MEMPHIS

^{Town : TN}

^{Postcode :
38125}

^{Country :
United States}

^{ROBERT LEIGH FLEETWOOD MANN
G5714842Q Director}

^{Appointed on : 30/07/2003}

^{Street : 33 TUAS SOUTH STREET
1}

^{Town : SINGAPORE}

^{Postcode :
638038}

^{Country :
Singapore}

^{ROBERT LEIGH FLEETWOOD MANN
G5714842Q Managing Director}

^{Appointed on : 30/07/2003}

^{Street : 33 TUAS SOUTH STREET 1}

^{Town : SINGAPORE}

^{Postcode : 638038}

^{Country :
Singapore}

^{ANTHONY ANNE CATHERINE
S1347717E Company Secretary}

^{Appointed on : 19/01/2004}

^{Street : 8 LORONG 29 GEYLANG}

^#07-06

^{Town :SINGAPORE}

^{Postcode :
388064}

^{Country :
Singapore}

FORMER DIRECTOR(S)

^{KHOO BEE KEOW PAULINE S1409001J}

^{EWE PANG KOOI S2548253J}

^{DENNIS LEONARDUS DALTON S2693940B}

^{ROBERT HENRY BUCKMAN E1013353}

^{CHAN NGOK SENG SHAUN S1542576H}

^{TANG AI AI (MRS WONG AI AI) S1599153D}

ACTIVITY(IES)

^{CHEMICALS
Code:3970}

^{PULP And PULP PRODUCTS Code:17730}

^{PAPER PRODUCTS Code:16020}

^{BASED ON ACRA'S RECORD}

^{1) MANUFACTURE OF PULP, PAPER & PAPERBOARD}

CHARGES

^{Date : 04/02/2002}

^{Comments :
CHARGE NO: 200200558 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): UNITED OVERSEAS BANK LIMITED}

PREMISES/PROPERTY INFORMATIONS

^{Date :
15/06/2007}

^{Tax rate : 10}

^{Site Address :
33 TUAS SOUTH STREET 1}

^{Town :
SINGAPORE}

^{Postcode :
638038}

^{Country : Singapore}

^{Annual Value : 252,000 (SGD)}

*TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

*TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY

RENTED OUT BY THE OWNER/OWNED BY COMPANY.

*FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

*ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED

OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE

PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.

BANKERS

^{UNITED OVERSEAS BANK LIMITED}

SHAREHOLDERS(S)

^{BULAB HOLDINGS INC. 3,196,996 Company}

^{Street : 256
NORTH MCLEAN BLVD}

^MEMPHIS

^{Town : TN
38108}

^{Postcode : 0305}

^{Country : United States}

HOLDING COMPANY

^{BULAB HOLDINGS INC.
UF08033C % : 100}

SUBSIDIARY(IES)

^{BUCKMAN LABORATORIES (MALAYSIA) SDN BHD}

^Malaysia

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality :
AVERAGE}

^{Liquidity :
LACKING}

^{Payments : REGULAR}

^{Trend
:
UPWARD}

^{Financial
Situation : AVERAGE}

LITIGATION(S)

^{Type Of Case : District Court - W/S}

^{Case Number : DCS03258/1997}

Defendant BUCKMAN LABORATORIES (ASIA) PTE L

ROC # : 99104610M

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged :
21/08/2006}

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

^{Number of weeks : 52
52 52}

^{Consolidation Code :
COMPANY COMPANY COMPANY}

ASSETS

^{Tangible Fixed
Assets: 4,553,155 4,794,271 4,513,425}

^{Investments 1 1 1}

^{Total Fixed Assets}^{: 4,553,156
4,794,272
4,513,426}

^{Inventories: 3,112,649 3,188,135 2,255,577}

^{Receivables: 4,715,405 2,664,466 2,164,864}

^{Cash,Banks, Securitis: 700,626 1,282,159
1,266,434}

^{Other current assets: 226,587 233,733
347,799}

^{Total Current Assets}^{: 8,755,267 7,368,493
6,034,674}

^{TOTAL ASSETS: 13,308,423
12,162,765
10,548,100}

LIABILITIES

^{Equity capital: 3,196,996 3,196,996 3,196,996}

^{Profit & loss
Account: -279,118 -298,619 -131,725}

^{Surplus equity: 150,000 150,000 150,000}

^{Total Equity}^{: 3,067,878 3,048,377 3,215,271}

^{Long Term Loans: 579,793 697,786
900,955}

^{Other long term
Liab.: 73,744 107,605 -}

^{Total L/T Liabilities}^{: 653,537 805,391
900,955}

^{Trade Creditors: 2,260,333 4,362,705
2,415,290}

^{Prepay. & Def.
charges1,370,651 1,353,631 1,316,452}

^{Short term
liabilities: 45,027 69,051 -}

^{Due to Bank: 4,596,300 852,390 1,178,548}

^{Provisions: - - 280,293}

^{Other Short term
Liab.: 1,314,697 1,671,220 1,241,291}

^{Total short term Liab}^{.: 9,587,008 8,308,997
6,431,874}

^{TOTAL LIABILITIES: 10,240,545 9,114,388
7,332,829}

PROFIT & LOSS ACCOUNT

^{Net Sales 25,649,636 21,511,144 15,894,923}

^{Purchases,Sces & Other}

^{Goods: 14,588,751 12,042,583 8,085,875}

^{Gross Profit: 11,060,885 9,468,561
7,809,048}

^{Result of ordinary
operations 208,735
-139,987 -808,181}

^{NET RESULT BEFORE
TAX: 19,501 -241,131 -821,609}

^{Tax : - -74,237 -}

^{Net income/loss year: 19,501 -166,894
-821,609}

^{Interest Paid: 189,234 101,144 112,312}

^{Depreciation:
637,445 522,647 473,519}

^{Directors Emoluments: 548,108 356,772 444,108}

^{Wages and Salaries: 4,750,638 4,008,604 2,981,110}

^{Financial Income: 1,627 233,495 98,884}

RATIOS

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

^{Turnover per
employee: 294823.40 247254.53
182700.26}

^{Net result /
Turnover(%): 0.00
-0.01 -0.05}

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

^{Stock / Turnover(%): 0.12 0.15 0.14}

^{Net Margin(%): 0.08 -0.78 -5.17}

^{Return on Equity(%): 0.64 -5.47 -25.55}

^{Return on Assets(%): 0.15 -1.37 -7.79}

^{Net Working capital: -831741.00 -940504.00 -397200.00}

^{Cash Ratio:
0.07 0.15 0.20}

^{Quick Ratio: 0.56 0.47 0.53}

^{Current ratio:
0.91 0.89 0.94}

^{Receivables Turnover: 66.18 44.59 49.03}

^{Leverage Ratio:
3.34 2.99 2.28}

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

^{OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH TOTAL EQUITY IMPROVING MARGINALLY}

^{BY
0.64% AMOUNTING TO USD3,067,878 (2004: USD3,048,377). THIS WAS}

^{CONTRIBUTED BY LOWER RETAINED LOSSES BROUGHT FORWARD OF USD279,118}

^{(2004: -USD298,619).}

^LEVERAGE:

^{THE LEVERAGE RATIO HAD GONE UP AND WAS AGGRESSIVE AT 3.34 TIMES}

^{(2004:
2.99 TIMES). THIS INDICATED THAT THE COMPANY'S TOTAL}

^{LIABILITIES WERE MORE SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS FELL NOTABLY BY 48.19% AMOUNTING}

^{TO USD2,260,333 (2004: USD4,362,705). AMOUNT DUE TO BANKS SURGED TO}

^{USD4,596,300 (2004: USD852,390) AND COMPRISED OF:}

^{*
BANK OVERDRAFT (UNSECURED) OF USD4,501,296 (2004: USD758,777)}

^{*
BANK LOAN OF USD95,004 (2004: USD93,613)}

^{THE BANK LOAN IS SECURED BY:}

^{-
LEGAL MORTGAGE OVER ONE OF THE COMPANY'S LEASEHOLD LAND AND}

^BUILDINGS

^{-
THE CORPORATE GUARANTEE OF THE COMPANY'S IMMEDIATE AND ULTIMATE}

^{HOLDING CORPORATION; AND}

^{-
THE PLEDGE OF DEPOSITS HELD BY THE BANK}

^{OTHER SHORT TERM LIABILITIES OF USD1,314,697 (2004: USD1,671,220)}

^{REFERRED TO:}

^{*
NON-TRADE PAYABLES TO THIRD PARTIES OF USD433,145 (2004: USD706,830)}

^{*
NON-TRADE PAYABLES TO LOAN FROM A RELATED CORPORATION OF USD807,382}

^{(2004: USD905,171)}

^{*
NON-TRADE PAYABLES TO RELATED CORPORATIONS OF USD74,170}

^{(2004: USD59,219)}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE COMPANY HAD IMPROVED BUT REMAINED}

^{UNHEALTHY. BOTH THE QUICK AND CURRENT RATIOS POSTED HIGHER BUT WERE}

^{LACKING AT 0.56 TIMES (2004: 0.47 TIMES) AND 0.91 TIMES (2004: 0.89}

^{TIMES) RESPECTIVELY.}

^{THIS WAS IN TANDEM WITH THE NET WORKING CAPITAL, WHICH REGISTERED}

^{UNFAVOURABLY AT -USD831,741 (2004: -USD940,504) AS WELL.}

^{PROFITABILITY:}

^{REVENUE
FOR FY2005 ROSE BY 19.24%, TOTALLING USD25,649,636}

^{(2004: USD21,511,144). NET INCOME IMPROVED SIGNIFICANTLY BY 1.12}

^{TIMES, AMOUNTING TO USD19,501 (2004: -USD166,894).}

^{AS A RESULT, NET MARGIN WAS POSITIVE AT 0.08% (2004: -0.78%)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE}

^{STRONG NET WORTH AND IF TRADE RECEIVABLES WERE FORTHCOMING.}

^{IN ADDITION, AVERAGE COLLECTION PERIOD WAS COMPUTED AT 66 DAYS}

^{(2004: 45 DAYS).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON}

^{13/09/1991 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF}

^{"BUCKMAN LABORATORIES PTE LTD".}

^{SUBSEQUENTLY ON 14/07/1995T CHANGED TO ITS PRESENT NAMESTYLE OF}

^{"BUCKMAN LABORATORIES (ASIA) PTE
LTD".}

^{AS AT 18/10/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF}

^{3,196,996 SHARES, OF A VALUE OF S$3,346,996.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY}

^{AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) MANUFACTURE OF PULP, PAPER & PAPERBOARD}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITIES}

^{OF THE COMPANY CONSIST OF MANUFACTURING AND TRADING IN CHEMICAL}

^{PRODUCTS, PRIMARILY TO THE PULP AND PAPER, WATER TREATMENT,}

^{PAINT AND PLASTICS, AND LEATHER INDUSTRIES IN ASIA.}

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

^{THE
COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE}

^{CLASSIFICATION OF: CHEMICALS.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{*
SALES AND MARKETING OF SPECIALTY CHEMICALS FOR THE PULP, PAPER,}

^{LEATHER AND INDUSTRIAL WATER TREATMENT INDUSTRIES.}

^{*
WHOLESALERS AND DISTRIBUTORS, IMPORTERES AND EXPORTERS OF INDUSTRIAL}

^{AND COMMERICAL PRODUCTS: BASE MATERIALS}

^{NO. OF EMPLOYEES (31 DECEMBER):}

^{*
COMPANY - 2005: 87 (2003: 84; 2002: 81)}

^{QUALITY
ASSESSMENT:}

^{*
ISO 14001}

^{*
ISO 9002}

^{*
OHSAS 18001}

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

^{*
SINGAPORE CHEMICAL INDUSTRY COUNCIL}

^{*
SINGAPORE MANUFACTURERS' FEDERATION}

^{TERMS OF PAYMENT:}

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

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

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE.}

^{THE COMPANY'S IMMEDIATE AND ULTIMATE HOLDING CORPORATION IS BULAB}

^{HOLDINGS INC., INCORPORATED IN THE UNITED STATES OF AMERICA.}

^{REGISTERED ADDRESS:}

^{1
TEMASEK AVENUE}

^#27-01

^{MILLENIA SINGAPORE}

^{SINGAPORE 039192}

^{DATE OF CHANGE OF ADDRESS: 15/01/2004}

^{BUSINESS ADDRESS:}

^{33 TUAS SOUTH STREET 1}

^{SINGAPORE 638038}

^{-
OWNED PREMISE}

^{WEBSITE: http://www.buckman.com.sg}

^{EMAIL: asia@buckman.com.sg}

MANAGEMENT

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

^{1) EDSON PORTO PEREDO, A BRAZILIAN}

^{- BASED IN THE UNITED STATES OF AMERICA}

^{2)
STEVEN BRUCE BUCKMAN, AN AMERICAN}

^{- BASED IN UNITED STATES OF AMERICA}

^{3) ROBERT LEIGH FLEETWOOD MANN, A SOUTH AFRICAN}

^{- BASED IN SINGAPORE}

Singapore’s Country Rating 2007

Rating: A1

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

THE OVERALL DOMESTIC WHOLESALE TRADE DECLINED BY 7.5% IN Q1 2007. EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 7.4%. SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, INDUSTRIAL AND CONSTRUCTION MACHINERY REPORTED DECLINES OF 11.6% TO 23.8%.

HOWEVER, WHOLESALERS OF FOOD, BEVERAGES AND TOBACCO REGISTERED HIGHER TURNOVER OF 5.4%.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE IN QUARTER 1 2007 FELL BY 7.6%. EXCLUDING PETROLEUM, FOREIGN SALES DECLINED BY 8.0%. MOST WHOLESALE SECTORS REPORTED LOWER OVERSEAS RECEIPTS IN QUARTER 1 2007 COMPARED TO THE PREVIOUS QUARTER, EXCEPT HOUSEHOLD EQUIPMENT AND FURNITURE SECTOR. SHIP CHANDLERS & BUNKERING REPORTED THE LARGEST DECLINE OF 18.3% IN QUARTER 1 2007, FOLLOWED BY FOOD BEVERAGES & TOBACCO SECTOR OF 17.7%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE MARGINALLY BY 0.7% IN QUARTER 2 2007, COMPARED TO QUARTER 2 2006. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.1%. SALES OF OPTICAL GOODS & BOOKS, FURNITURE & HOUSEHOLD EQUIPMENT AND SUPERMARKETS ENJOYED STRONG GROWTHS OVER A YEAR AGO. PROVISION & SUNDRY SHOPS, WATCHES AND JEWELLERY, DEPARTMENT STORES AND WEARING APPAREL & FOOTWEAR SECTORS ALSO REPORTED HIGHER SALES OF 4.35 TO 5.9% RESPECTIVELY.

HOWEVER, RETAILERS OF MOTOR VEHICLES, FOOD & BEVERAGES, TELECOMMUNICATIONS APPARATUS & COMPUTERS AND PETROL SERVICES STATIONS REPORTED LOWER SALES.

OUTLOOK

GENERALLY, WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD & BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC.

RETAIL TRADE FIRMS ANTICIPATE BUSINESS TO BE LESS BRISK FOR THE NEXT 6 MONTHS. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

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.	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