MIRA INFORM REPORT

Report Date :

22.11.2007

IDENTIFICATION DETAILS

Name :	ABCOM TRADING PTE LTD

Registered Office :	^{221 Henderson Road, #01-02, Henderson Building, Singapore – 159557}

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	^14/01/2000

Com. Reg. No.:	^200000356K

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Trading

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

ABCOM TRADING PTE LTD

Line Of Business

TRADING

Parent Company

N.A.

Financial Elements

FY 2006

COMPANY

Sales : US$57,678,650

Networth : US$ 873,334

Paid-Up Capital : US$ 613,498

Net result : US$ 305,084

Net Margin(%) : 0.53

Return on Equity(%) : 34.93

Leverage Ratio : 7.87

COMPANY IDENTIFICATION

^{Subject Company : ABCOM TRADING PTE LTD}

^{Former Name :
-}

^{Business Address : 221 HENDERSON ROAD}

^#01-02

^{HENDERSON BUILDING}

^{Town :
SINGAPORE}

^{Postcode : 159557}

^{Country :
Singapore}

^{Telephone : 6225 3946}

^{Fax :
6225 4640}

^{ROC Number :
200000356K}

^{Reg. Town : -}

SUMMARY

^{Legal Form : Exempt Pte Ltd}

^{Date Inc. : 14/01/2000}

^{Previous Legal
Form : -}

^{Summary year :
31/12/2006}

^{Sales :
57,678,650}

^{Networth : 873,334}

^{Capital :
-}

^{Paid-Up Capital :
613,498}

^{Employees : 20}

^{Net result : 305,084}

^{Share value : 1}

^{Auditor :
J K MEDORA & CO}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started :
14/01/2000}

PRINCIPAL(S)

^{BHARAT
MANDLOI S2708230J Director}

DIRECTOR(S)

^{BHARAT
MANDLOI S2708230J Director}

^{Appointed on : 14/01/2000}

^{Street : 15 LEONIE
HILL ROAD}

^#12-04

^{HORIZON TOWERS EAST}

^{Town :
SINGAPORE}

^{Postcode : 239194}

^{Country : Singapore}

^{ALKA MANDLOI S2708231I Director}

^{Appointed on : 14/01/2000}

^{Street : 15 LEONIE
HILL ROAD}

^#12-04

^{HORIZON TOWERS EAST}

^{Town :
SINGAPORE}

^{Postcode : 239194}

^{Country : Singapore}

^{SEET BENG CHOO
JEANNE S1234059A Company Secretary}

^{Appointed on : 12/11/2003}

^{Street : 529
HOUGANG AVENUE 6}

^#07-263

^{Town :
SINGAPORE}

^{Postcode : 530529}

^{Country : Singapore}

^{PEH POH CHIN S6840069D Company Secretary}

^{Appointed on : 12/11/2003}

^{Street : 22
MALACCA STREET}

^#08-02

^{ROYAL BROTHERS BUILDING}

^{Town :
SINGAPORE}

^{Postcode : 048980}

^{Country : Singapore}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code: 11760}

^{TRADING
COMPANIES
Code: 22190}

^{COMMISSION
MERCHANTS
Code: 4990}

^{BASED ON ACRA'S
RECORD AS AT 21/11/2007}

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

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

CHARGES

^{Date: 24/04/2007}

^{Comments : CHARGE
NO: C200703082}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: VTB BANK EUROPE PLC SINGAPORE BRANCH}

^{Date: 11/09/2007}

^{Comments : CHARGE
NO: C200707512}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

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

^{Date: 31/12/2003}

^{Comments : CHARGE
NO: C200306265}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: UNITED OVERSEAS BANK LIMITED}

^{Date: 25/05/2004 Amount:
110,000}

^{Comments : CHARGE
NO: C200402507}

^{AMOUNT SECURED: US$110,000.00}

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

^{Date: 18/04/2005}

^{Comments : CHARGE
NO: C200502255}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: MOSCOW NARODNY BANK LIMITED}

^{Date: 06/09/2003}

^{Comments : CHARGE
NO: C200304275, C200304274}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: BANK OF INDIA}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{BANK OF INDIA}

^{THE HONGKONG &
SHANGHAI BANKING CORPORATION}

^{VTB BANK EUROPE
PLC (S'PORE BRANCH)}

^{MOSCOW NARODNY
BANK LIMITED}

^{UNITED OVERSEAS BANK
LIMITED}

SHAREHOLDERS(S)

^{BHARAT
MANDLOI
475,001 Private Person}

^{Street : 15 LEONIE
HILL ROAD}

^#12-04

^{HORIZON TOWERS EAST}

^{Town :
SINGAPORE}

^{Postcode : 239194}

^{Country : Singapore}

^{ALKA MANDLOI
275,001 Private Person}

^{Street : 15 LEONIE
HILL ROAD}

^#12-04

^{HORIZON TOWERS EAST}

^{Town :
SINGAPORE}

^{Postcode : 239194}

^{Country : Singapore}

^{GEDRA ENTERPRISES
INC.
250,000 Company}

^{Street : C/O
MORGAN & MORGAN TRUST}

^{CORPORATION LIMITED}

^{PASEA ESTATE, ROAD TOWN}

^{Town : TORTOLA}

^{Postcode : -}

^{Country : Virgin
Islands (British)}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality :
AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend :
UPWARD}

^{Financial
Situation : AVERAGE}

FINANCIAL ELEMENTS

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

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

^{Date
Account Lodged:
17/09/2007}

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

^{Number
of weeks:
52 52}

^{Consolidation
Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible
Fixed Assets:
11,143 11,979}

^{Total Fixed Assets: 11,143 11,979}

^{Receivables: 6,631,182 5,946,836}

^{Cash,Banks,
Securitis: 964,568 683,245}

^{Other
current assets:
139,850
84,499}

^{Total Current Assets: 7,735,600
6,714,580}

^{TOTAL ASSETS: 7,746,743 6,726,559}

^{--- LIABILITIES ---}

^{Equity
capital: 613,498 613,498}

^{Profit
& lost Account: 259,836 -45,248}

^{Total Equity: 873,334 568,250}

^{L/T
deffered taxes:
270}

^{Total L/T Liabilities: 270}

^{Trade
Creditors:
4,232,154
4,117,470}

^{Prepay.
& Def. charges:
30,254
49,413}

^{Due
to Bank: 2,497,138 1,930,144}

^{Provisions: 45,163 14,223}

^{Other
Short term Liab.:
68,430 47,059}

^{Total short term Liab.: 6,873,139 6,158,309}

^{TOTAL LIABILITIES: 6,873,409 6,158,309}

^{PROFIT
& LOSS ACCOUNT}

^{Net
Sales
57,678,650
23,717,127}

^{NET
RESULT BEFORE TAX:
335,354
-123,589}

^{Tax
:
30,270
-1,963}

^{Net
income/loss year:
305,084
-121,626}

^{Interest
Paid: 97,609 59,591}

^{Depreciation: 3,199 3,257}

^{Directors
Emoluments:
151,265
88,914}

^{Wages
and Salaries:
194,010
103,402}

^{Financial
Income:
20,057
11,521}

RATIOS

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

^{Turnover
per employee: 2883932.50 1185856.35}

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

^{Net
Margin(%): 0.53 -0.51}

^{Return
on Equity(%): 34.93 -21.40}

^{Return
on Assets(%): 3.94 -1.81}

^{Net
Working capital: 862461.00 556271.00}

^{Cash
Ratio: 0.14 0.11}

^{Quick
Ratio: 1.11 1.08}

^{Current
ratio: 1.13 1.09}

^{Receivables
Turnover: 41.39 90.27}

^{Leverage
Ratio: 7.87 10.84}

^{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)/1000}

^{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

^{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 53.69% FROM US$568,250 IN
2005 TO US$873,334 IN 2006. THIS WAS DUE TO HIGHER RETAINED EARNINGS OF
US$259,836 (2005: US$-45,248); A RISE OF 6.74 TIMES FROM THE PRIOR YEAR.}

^LEVERAGE:

^{IN THE SHORT TERM,
SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 61.58% (2005:
66.86%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$4,232,154 (2005:
US$4,117,470). THE BREAKDOWN IS AS FOLLOWS:}

^{* TRADE PAYABLES -
2006: US$4,229,760 (2005: US$3,960,278)}

^{* TRADE ADVANCES -
2006: US$2,394 (2005: US$157,192)}

^{AMOUNT DUE TO
BANKS OF US$2,497,138 (2005: US$ 1,930,144) CONSISTED OF BANK BORROWINGS.}

^{SUBJECT INCURRED
LONG TERM LIABILITIES OF US$270 (2005: NIL) WHICH CONSISTED OF DEFERRED INCOME
LIABILITY.}

^{IN ALL, LEVERAGE
RATIO FELL FROM 10.84 TIMES TO 7.87 TIMES AS A RESULT OF A RISE IN TOTAL EQUITY
AND TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL,
SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE NET WORKING CAPITAL
AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 1.13 TIMES, UP FROM 1.09 TIMES AND
QUICK RATIO IMPROVED FROM 1.08 TIMES TO 1.11 TIMES. SIMILARLY, NET WORKING
CAPITAL IMPROVED BY 55.04% FROM US$556,271 IN 2005 TO US$862,461 IN 2006.}

^{CASH AND CASH EQUIVALENTS
ROSE SHARPLY BY 41.17% FROM US$683,245 IN 2005 TO US$964,568 IN 2006 AND
CONSISTED OF:}

^{* CASH AND BANK
BALANCES - 2006: US$30,784 (2005: US$290,653)}

^{* TIME AND FIXED
DEPOSITS - 2006: US$933,784 (2005: US$392,592)}

^{PROFITABILITY:}

^{REVENUE POSTED A
SHARP INCREASE OF 1.43 TIMES FROM US$23,717,127 IN 2005 TO US$57,678,650 IN
2006. THIS RESULTED IN THE SHARP RISE OF NET PROFITS OF 3.51 TIMES TO
US$305,084 (2005: US$-121,626). HENCE, NET MARGIN ROSE TO 0.53%, UP FROM
-0.51%.}

^{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 CONSIDERING THAT ITS INTEREST EXPENSES WERE LOW AT US$97,609 IN
2006 (2005: US$59,591).}

^{NOTES
TO THE FINANCIAL STATEMENTS:}

^{BANK
BORROWINGS}

^{THESE ARE AS
FOLLOWS:}

^{* SECURED - 2006: US$473,304 (2005: US$375,586)}

^{* UNSECURED -
2006: US$2,023,834 (2005: US$1,554,558)}

^{(A) THE BANK
BORROWINGS ARE SECURED AS FOLLOWS:}

^{(I) BY LIEN OVER THE CALL AND FIXED DEPOSITS OF
THE COMPANY AS MENTIONED IN THE FINANCIAL STATEMENTS;}

^{(II) BY A NEGATIVE PLEDGE OVER THE ASSETS OF THE
COMPANY; AND}

^{(III) PERSONAL
GUARANTEES GIVEN BY DIRECTORS OF THE COMPANY.}

^{(B) THE CARRYING
VALUES OF THE BANK BORROWINGS APPROXIMATE THEIR FAIR VALUES GIVEN THAT THEY ARE
SHORT TERM IN NATURE AND THEY ARE DENOMINATED IN UNITED STATES DOLLAR,}

^{(C) THE INTEREST
BEARING BORROWING MATURE WITHIN THE NEXT 12 MONTHS,}

^{(D) INTEREST RATES}

^{THE WEIGHTED AVERAGE
EFFECTIVE INTEREST RATE AT BALANCE SHEET DATE ARE 7.652% (2005: 6.8%) PER
ANNUM.}

^{(E) UNDRAWN
BORROWING FACILITIES}

^{THE COMPANY HAS
THE FOLLOWING UNDRAWN BORROWING FACILITIES AS AT BALANCE SHEET DATE:-}

^{* AT FLOATING
INTEREST RATE - 2006: US$896,203 (2005: US$3,144,000)}

^{THE FACILITIES ARE
ANNUAL FACILITIES SUBJECT TO REVIEW AT VARIOUS DATES DURING 2006.}

^{BANK
GUARANTEES}

^{AT BALANCE SHEET
DATE, THE COMPANY HAS ISSUED BANK GUARANTEES TOTALLING US$60,000 IN FAVOUR OF
THIRD PARTIES.}

^{A MARGIN FIXED
DEPOSIT OF US$10,000 (2005: NIL) WAS PLEDGED AS SECURITY.}

BACKGROUND/OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 14/01/2000 AS A LIMITED EXEMPT
PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "ABCOM
TRADING PTE LTD".}

^{AS AT 21/11/2007,
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 1,000,002 SHARES, OF A VALUE
OF S$1,000,002.}

^{PRINCIPAL
ACTIVITIES:}

^{SUBJECT IS
REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY AUTHORITY (ACRA) 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(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TO CARRY ON
THE BUSINESS AS GENERAL MERCHANTS, IMPORTERS, EXPORTERS AND COMMISSION AGENTS
OF ALL KINDS INTERNATIONALLY.}

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

^{THE COMPANY IS
LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: TRADING
COMPANIES.}

^{SUBJECT ENGAGES IN
THE FOLLOWING ACTIVITY:}

^{* TRADING}

^{PRODUCTS DEALINGS:}

^{METAL PRODUCTS}

^{* STAINLESS STEEL
SCRAP}

^{- STAINLESS STEEL
SCRAP 304}

^{- STAINLESS STEEL
SCRAP 316}

^{* CHROME STEEL
SCRAP}

^{- 430 PRODUCTION
SCRAP}

^{- CHROME STEEL
SCRAP 409}

^{- CHROME STEEL
SCRAP 410}

^{* HIGH NICKEL
ALLOYS}

^{- HIGH TEMPERATURE
AND SUPER ALLOYS, CONTAINING: TITANIUM, COBALT & MOLLY}

^{* TOOL STEEL SCRAP}

^{- DIE SCRAP
(H11-H13)}

^{- COLD WORKING
TOOL STEEL SCRAP}

^{- HOT WORKING TOOL
STEEL SCRAP}

^{* ALUMINUM SCRAP}

^{- LITHOGRAPHIC
SHEETS}

^{- TAINT / TABOR}

^{- BALED ALUMINUM
USED BEVERAGE CAN (UBC) SCRAP}

^{- ALLOY WHEELS}

^{- ALUMINUM
EXTRUSION 6063}

^{- TENSE}

^{* FERROUS METALS}

^{- BUSHLINGS}

^{- SHREDDED MELTING
SCRAP}

^{- HMS}

^{- RAILWAY SCRAP}

^{- RAILWAY AXLES}

^{- RAILWAY WHEELS}

^{- RAILWAY (RAILS
& FISH PLATES)}

^{SUBJECT WORKS WITH
MANY OF THE PLANTS AND PROCESSING PLANTS IN ASIA PACIFIC, INDIA, MIDDLE EAST,
EUROPE AND USA.}

^{OVERSEAS OFFICE:}

^{* INDIA}

^AWARDS:

^{* GOLD MEMBERSHIP
OF BUREAU OF INTERNATIONAL RECYCLING}

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

^{* SINGAPORE
BUSINESS FEDERATION}

^{FROM THE
TELE-INTERVIEW CONDUCTED ON 22/11/2007, SUBJECT CONFIRMED ITS ADDRESS AND
CONTACTS. THE FOLLOWING WAS GATHERED:}

^{SUBJECT REVEALED THAT
THE OFFICE IN SINGAPORE HANDLES THE BUSINESS IN SOUTH EAST ASIA.}

^{TRADING COUNTRIES
INCLUDE:}

^{* SOUTH
EAST/MIDDLE EAST/AFRICA/FAR EAST REGION INCLUDING INDIA, TURKEY ETC.}

^{NUMBER OF
EMPLOYEES:}

^{* 20}

^{NO OTHER TRADE
INFORMATION WAS AVAILABLE ON 22/11/2007.}

^{NUMBER OF
EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006:
- (2005: -)}

^{REGISTERED AND
BUSINESS ADDRESS:}

^{221 HENDERSON ROAD}

^#01-02

^{HENDERSON BUILDING}

^{SINGAPORE 159557}

^{DATE OF CHANGE OF
ADDRESS: 15/10/2007}

^{- RENTED PREMISE}

^{- PREMISE OWNED
BY: MACROSERVE PTE LTD}

^{WEBSITE : http://www.abcomsp.com/}

^{EMAIL :
trade@abcomsp.com}

MANAGEMENT

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

^{1) BHARAT MANDLOI,
A SINGAPOREAN PERMANENT RESIDENT}

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

^{2) ALKA MANDLOI,
SINGAPORE PR}

^{- HOLDS NO OTHER
DIRECTORSHIPS 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

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