MIRA INFORM REPORT

Report Date :

14.11.2007

IDENTIFICATION DETAILS

Name :	MALAYAN TRADERS SYNDICATE (PTE) LTD
Registered Office :	^601 Sims Drive, #06-10, Pan-I Complex, Singapore – 387382
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^16/06/1973
Com. Reg. No.:	^197301133E
Legal Form :	^Exempt Pte Ltd
Line of Business :	Trading of Leather, Shoe Accessories and Components, Shoe Finishing and Machinery

RATING & COMMENTS

MIRA’s Rating :

Ca

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 :	Regular
Litigation :	Clear

Subject Company

MALAYAN TRADERS SYNDICATE (PTE) LTD

Line Of Business 

TRADING OF LEATHER, SHOE ACCESSORIES AND COMPONENTS, SHOE FINISHING AND MACHINERY

Parent Company

-

Financial Elements

FY 2006

COMPANY

Sales : S$7,216,937

Networth : S$-15,977

Paid-Up Capital : S$650,000

Net result : S$110,018

Net Margin(%) : 1.52

Return on Equity(%) : -688.60

Leverage Ratio : -163.16

COMPANY IDENTIFICATION

^{Subject Company : MALAYAN TRADERS SYNDICATE (PTE) LTD}

^{Former Name : -}

^{Business Address: 601 SIMS DRIVE}

^#06-10

^{PAN-I COMPLEX}

^{Town: SINGAPORE}

^{Postcode: 387382}

^{County: -}

^{Country: Singapore}

^{Telephone: 6746 6141}

^{Fax: 6748 1929}

^{ROC Number: 197301133E}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Exempt Pte Ltd}

^{Date Inc.: 16/06/1973}

^{Previous Legal Form: -}

^{Summary year : 31/12/2006}

^{Sales: 7,216,937}

^{Networth : -15,977}

^{Capital: -}

^{Paid-Up Capital: 650,000}

^{Employees: 4}

^{Net result : 110,018}

^{Share value: -}

^{AUDITOR: EDWIN TAY & CO.}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 16/06/1973}

PRINCIPAL(S)

^{CHUA SOK CHOO @ CHUA SEOK CHOO S0340680F Director}

DIRECTOR(S)

^{CHUA SOK CHOO @ CHUA SEOK CHOO S0340680F Director}

^{Appointed on : 15/08/1974}

^{Street : 95 MARSHALL ROAD}

^{Town: SINGAPORE}

^{Postcode: 424891}

^{Country: Singapore}

^{SU KHUN SIN S2508896D Director}

^{Appointed on : 15/08/1974}

^{Street : 95 MARSHALL ROAD}

^{Town: SINGAPORE}

^{Postcode: 424891}

^{Country: Singapore}

^{CHAI HUI LING ANGELA S1654188E Company Secretary}

^{Appointed on : 08/09/1998}

^{Street : 362 HOUGANG AVENUE 5}

^#09-304

^{Town: SINGAPORE}

^{Postcode: 530362}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{TAY HOE TONG @ TEY OH TOH S0116615H}

^{LEONG CHEE KENG S0235395D}

^{LEONG CHEE CHEONG S0387600D}

^{SU KUN SOI @ SOO KHOON SWEE S2533118D}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{COMMISSION MERCHANTS Code:4990}

^{BASED ON ACRA'S RECORD AS AT 10/11/2007}

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

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

CHARGES

^{Date: 19/01/1996}

^{Comments : CHARGE NO: 9600350}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: KEPPEL BANK OF SINGAPORE LIMITED}

^{Date: 16/12/1982 Amount: 260,000}

^{Comments : CHARGE NO: 8205414}

^{SECURED: 260,000.00 (Singapore Dollars)}

^{CHARGEE: KB NOMINEES PTE LTD}

^{Date: 24/01/1981 Amount: 145,000}

^{Comments : CHARGE NO: 8100295}

^{SECURED: 145,000.00 (Singapore Dollars)}

^{CHARGEE: KB NOMINEES PTE LTD}

^{Date: 02/12/1989}

^{Comments : CHARGE NO: 8904811}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: UNITED OVERSEAS BANK LIMITED}

^{Date: 10/06/1982 Amount: 195,000}

^{Comments : CHARGE NO: 8202165}

^{SECURED: 195,000.00 (Singapore Dollars)}

^{CHARGEE: KB NOMINEES PTE LTD}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{ASIA COMMERCIAL BANK LTD}

^{KEPPEL TATLEE BANK LIMITED}

^{UNITED OVERSEAS BANK LIMITED}

SHAREHOLDERS(S)

^{CHUA SOK CHOO @ CHUA SEOK CHOO 32,500 Private Person}

^{Street : 95 MARSHALL ROAD}

^{Town: SINGAPORE}

^{Postcode: 424891}

^{Country: Singapore}

^{SU KHUN SIN 32,500 Private Person}

^{Street : 95 MARSHALL ROAD}

^{Town: SINGAPORE}

^{Postcode: 424891}

^{Country: Singapore}

^{SU PENG JIUN 585,000 Private Person}

^{Street : 95 MARSHALL ROAD}

^{Town: SINGAPORE}

^{Postcode: 424891}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{SU KUN SOI @ SOO KHOON SWEE 37,500}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : LACKING

Payments : REGULAR

Trend : UPWARD

Financial Situation: BAD

FINANCIAL ELEMENTS

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

^{Audit Qualification: GOING CONCERN QUALIF GOING CONCERN QUALIF}

^{Date Account Lodged: 24/08/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 393,161 331,016}

^{Investments 400,000 400,000}

^{Total Fixed Assets: 793,161 731,016}

^{Inventories: 552,999 992,057}

^{Receivables: 1,159,530 1,453,954}

^{Cash,Banks, Securitis: 74,274 19,070}

^{Other current assets: 10,943 12,443}

^{Total Current Assets: 1,797,746 2,477,524}

^{TOTAL ASSETS: 2,590,907 3,208,540}

^{--- LIABILITIES}

^{Equity capital: 650,000 650,000}

^{Reserves: 200,000 200,000}

^{Profit & loss Account: -865,977 -975,995}

^{Total Equity: -15,977 -125,995}

^{Other long term Liab.: 49,993 65,407}

^{Total L/T Liabilities: 49,993 65,407}

^{Trade Creditors: 487,397 982,553}

^{Prepay. & Def. charges: 18,624 21,991}

^{Short term liabilities: 20,208 30,072}

^{Due to Bank: 817,228 917,188}

^{Other Short term Liab.: 1,213,434 1,317,324}

^{Total short term Liab.: 2,556,891 3,269,128}

^{TOTAL LIABILITIES: 2,606,884 3,334,535}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 7,216,937 4,695,370}

^{Result of ordinary operations 173,220 10,701}

^{NET RESULT BEFORE TAX: 110,018 -41,042}

^{Net income/loss year: 110,018 -41,042}

^{Interest Paid: 63,202 51,743}

^{Depreciation: 40,508 65,116}

^{Directors Emoluments: 30,000 60,000}

^{Wages and Salaries: 389,288 300,091}

RATIOS

^{31/12/2006 31/12/2005}

^{Turnover per employee: 1804234.25 1173842.50}

^{Net result / Turnover(%): 0.02 -0.01}

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

^{Stock / Turnover(%): 0.08 0.21}

^{Net Margin(%): 1.52 -0.87}

^{Return on Equity(%): -688.60 32.57}

^{Return on Assets(%): 4.25 -1.28}

^{Net Working capital: -759145.00 -791604.00}

^{Cash Ratio: 0.03 0.01}

^{Quick Ratio: 0.48 0.45}

^{Current ratio: 0.70 0.76}

^{Receivables Turnover: 57.84 111.48}

^{Leverage Ratio: -163.16 -26.47}

^{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

^{AUDITORS' REPORT:}

^{WITHOUT QUALIFYING OUR OPINION, WE DRAW ATTENTION TO NOTE 2.2 IN THE FINANCIAL STATEMENTS. THE FINANCIAL STATEMENTS HAVE BEEN PREPARED ON THE GOING CONCERN ASSUMPTION. HOWEVER, AS THE ACCUMULATED LOSS HAS EXCEEDED THE PAID UP CAPITAL OF THE COMPANY BY S$15,977 (2005: S$125,995), THE CONTINUING APPLICABILITY OF THE GOING CONCERN ASSUMPTION IS DEPENDENT ON THE CONTINUOUS AVAILABILITY OF SOURCE OF FINANCE AND PROFITABLE OPERATION OF THE COMPANY AND THE CONTINUOUS SUPPORT BY SHAREHOLDERS AND DIRECTORS OF THE COMPANY.}

^{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 NEGATIVE NET WORTH DECLINING BY 87.32% FROM S$125,995 IN FY 2005 TO S$15,977 IN FY 2006. THIS WAS DUE TO LOWER ACCUMULATED LOSS OF S$865,977 (2005:S$-975,995); A DECLINE OF 11.27% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER SHORT-TERM LIABILITIESWHICH MADE UP 47.46% (2005: 40.29%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$1,213,434 (2005: S$1,317,324). THE BREAKDOWN IS AS FOLLOWS:}

^{-AMOUNT DUE TO STAFF RELATED TO DIRECTORS - 2006: S$309,320 (2005: S$290,980)}

^{-SUNDRY CREDITORS: RENTAL DEPOSITS PAYABLE - 2006: S$9,211 (2005: S$10,450)}

^{-AMOUNT OWING TO A DIRECTOR - 2006: S$894,903 (2005: S$1,015,894)}

^{IN THE LONG-TERM, SUBJECT WAS WHOLLY FINANCED BY OTHER LONG-TERM LIABILITIES AND AMOUNTED TO S$49,993 (2005: S$65,407). THE BREAKDOWN IS AS FOLLOWS:}

^{-HIRE PURCHASE CREDITORS DUE AFTER NEXT 12 MONTHS - 2006: S$49,993 (2005: S$65,407)}

^{AMOUNT DUE TO BANKS OF S$817,228 (2005: S$917,188) CONSISTED OF:}

^{-LIABILITIES UNDER TRUST RECEIPTS AND BILLS PAYABLE - 2006: S$674,040 (2005: S$450,559)}

^{-BANK OVERDRAFT (SECURED) - 2006: S$143,188 (2005: S$466,629)}

^{IN ALL, LEVERAGE RATIO IS SIGNIFICANT AT -163.16 TIMES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS WEAK AS SEEN FROM THE NET WORKING CAPITAL DEFICIT AND LOW LIQUIDITY RATIOS. CURRENT RATIO FELL TO 0.70 TIMES, DOWN FROM 0.76 TIMES AND QUICK RATIO IMPROVED TO 0.48 TIMES FROM 0.45 TIMES IN FY 2005.}

^{NET WORKING CAPITAL DEFICIT FELL BY 4.10% FROM S$791,604 IN FY 2005 TO S$759,145.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 53.70% FROM S$4,695,370 IN FY 2005 TO S$7,216,937 AND NET LOSS DROPPED BY 3.68 TIMES TO S$110,018 (2005: S$-41,042). HENCE, NET MARGIN ROSE TO 1.52% (2005: -0.87%).}

^REVENUE:

^{-SALE OF LEATHER PRODUCTS - 2006: S$7,216,937 (2005: S$4,695,370)}

^{DEBT SERVICING:}

DEBT SERVICING PROBLEMS MIGHT BE EXPECTED WITH THE NEGATIVE NET WORTH AND LOW LIQUIDITY.

^{AVERAGE COLLECTION PERIOD HAS SHORTENED FROM 111.48 DAYS TO 57.84 DAYS. A SHORTER AVERAGE COLLECTION PERIOD POSES LESSER RISK OF TURNING INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT SERVICING ABILITY MAY BE AFFECTED IF TRADE RECEIVABLES ARE NON FORTHCOMING.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{BANKING FACILITIES}

^{THE COMPANY'S BANKING FACILITIES ARE SECURED BY THE FOLLOWING:}

^{(A) AN OPEN MORTGAGE OF THE COMPANY'S LEASEHOLD PROPERTY}

^{(B) LEGAL MORTGAGE OVER THE INVESTMENT PROPERTY}

^{(c) JOINT AND SEVERAL GUARANTEE GIVEN BY THE DIRECTORS OF THE COMPANY IN THEIR PERSONAL CAPACITIES}

^{THE CURRENT INTEREST CHARGED WAS BETWEEN 6% TO 6.5% (2005: 6% TO 6.5%)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 16/06/1973 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "MALAYAN TRADERS SYNDICATE (PTE) LTD".}

^{AS AT 10/11/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 650,000 SHARES OF A VALUE OF S$650,000.}

^{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)}

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF IMPORTERS, EXPORTERS AND WHOLESALERS OF LEATHER PRODUCTS.}

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

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* TRADING OF LEATHER, SHOE ACCESSORIES AND COMPONENTS, SHOE FINISHING AND MACHINERY}

^{PRODUCTS AND SERVISES:}

^{* HOT-STAMPING FOR LEATHER ATOM SPAREPARTS AND SERVICES}

^{* ITALIAN HYDRAULIC CUTTING PRESSES}

^{* GENUINE LEATHERS}

^{* ACCESSORIES}

^{* SHOES MACHINERY}

^{* LEATHER GOODS MACHINERY}

^{AGENTS FOR:}

^{* SIRDAR LIMITED (UNITED KINGDOM)}

^{* HAYFIELD (UNITED KINGDOM)}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 14/11/2007, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{* 2007: 4}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 14/11/2007.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006: 6 (2005: 8; 2004: NOT AVAILABLE; 2003:6; 2002:11, 2001:6)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{601 SIMS DRIVE}

^{#06-10 PAN-I COMPLEX}

^{SINGAPORE 387382}

^{- DATE OF CHANGE OF ADDRESS: 18/04/2005}

^{YOUR PROVIDED ADDRESS:}

^{601 SIMS DRIVE}

^{#06-09/10 PAN-I COMPLEX}

^{SINGAPORE 387382}

^{- FORMER ADDRESS AS CONFIRMED VIA TELE-INTERVIEW.}

^WEBITE:

^{http://www.malayan.com.sg}

^EMAIL:

^{sales@malayan.com.sg}

MANAGEMENT

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

^{1) CHUA SOK CHOO @ CHUA SEOK CHOO, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.}

^{2) SU KHUN SIN, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIP 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

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