MIRA INFORM REPORT

Report Date :

21.11.2007

IDENTIFICATION DETAILS

Name :	TYCO FIRE & BUILDING PRODUCTS ASIA PTE. LTD.

Registered Office :	^{45 Tuas Avenue 9, Singapore - 639189}

Country :	^Singapore

Financials (as on) :	30.09.2005

Date of Incorporation :	^07/06/1989

Com. Reg. No.:	^198902312C

Legal Form :	^{Pte Ltd}

Line of Business :	Trading and Distribution of Fire Protection Equipment

RATING & COMMENTS

MIRA’s Rating :

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

TYCO FIRE & BUILDING PRODUCTS ASIA PTE. LTD.

Line Of Business

TRADING AND DISTRIBUTION OF FIRE PROTECTION EQUIPMENT

Parent Company

WATER HOLDING (DENMARK) APS

(PERCENTAGE OF SHAREHOLDINGS: 100.00%)

Financial Elements

FY 2005

COMPANY

Sales : S$20,061,544

Networth : S$-5,660,868

Paid-Up Capital : S$19,635,100

Net result : S$ 2,197,632

Net Margin(%) : 10.95

Return on Equity(%) : -38.82

Leverage Ratio : -2.77

COMPANY IDENTIFICATION

^{Subject Company : TYCO FIRE & BUILDING
PRODUCTS ASIA} ^{PTE. LTD.}

^{Former Name :
GRINNELL SUPPLY SALES ASIA}

^{Business Address : 45 TUAS AVENUE 9}

^{Town :
SINGAPORE}

^{Postcode : 639189}

^{Country :
Singapore}

^{Telephone : 6861 1655}

^{Fax :
6861 1312}

^{ROC Number :
198902312C}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{GRINNELL SUPPLY
SALES ASIA PTE LTD DATE
OF CHANGE : 07/02/2003}

^{WORMALD ASIA
PRIVATE LIMITED DATE
OF CHANGE : 15/11/1990}

SUMMARY

^{Legal Form :
Pte Ltd}

^{Date Inc. :
07/06/1989}

^{Previous Legal
Form :
-}

^{Summary year :
30/09/2005}

^{Sales :
20,061,544}

^{Networth :
-5,660,868}

^{Capital :
-}

^{Paid-Up Capital :
19,635,100}

^{Employees :
4}

^{Net result : 2,197,632}

^{Share value :
1}

^{Auditor :
DELOITTE & TOUCHE}

REFERENCES

^{Litigation : No}

^{Company status : RADING}

^{Started :
07/06/1989}

PRINCIPAL(S)

^{NG ENG HUP S2592975F Director}

DIRECTOR(S)

^{THAM MAY
CHENG S2565810H Company Secretary}

^{Appointed on : 08/03/2005}

^{Street : 234
HOUGANG AVENUE 1}

^#04-260

^{Town :
SINGAPORE}

^{Postcode : 530234}

^{Country : Singapore}

^{NG ENG HUP S2592975F Director}

^{Appointed on : 01/01/2002}

^{Street : 325 YISHUN
CENTRAL}

^#05-349

^{Town :
SINGAPORE}

^{Postcode : 760325}

^{Country : Singapore}

^{CHOONG HWEI
FONG S7084489C Company Secretary}

^{Appointed on : 08/03/2005}

^{Street : 320 ANG
MO KIO AVENUE 1}

^#03-1515

^{Town :
SINGAPORE}

^{Postcode : 560320}

^{Country : Singapore}

^{BRUNO MICHEL
VILLARET G5537390L Director}

^{Appointed on : 01/01/2002}

^{Street : VILLA
223, SEC II, BLDG 1, TYPE JJ}

^{SHANGHAI GREEN VALLEY
VILLAS}

^{1500 HA MI ROAD}

^{Town :
SHANGHAI}

^{Postcode : -}

^{Country : China}

FORMER DIRECTOR(S)

^{TEO SOON KOK S0379189J}

^{GOH NANCY S1184358A}

^{REGINALD JOHN
FRANK S2192855J}

^{WILLSON JOHN
LESTER C335771D}

^{MACDOUGAL ANDREW
BALCOMBE E022025}

^{NEIL HALLAM
GAMBLE J0167102}

^{MICHAEL THOMAS
BRIGHT F2038439P}

^{EDWARD JAMES
MANLEY F2092139X}

ACTIVITY(IES)

^{FIRE PROTECTION
EQUIPMENT Code: 8930}

^{IMPORTERS And
EXPORTERS
Code: 11760}

^{BUILDING
CLEANING
Code:
2880}

^{BASED ON ACRA'S
RECORD AS AT 16/11/2007}

^{1)
BUILDING-CLEANING ACTIVITIES (EG JANITORIAL SERVICE); TRADING &
DISTRIBUTION OF FIRE PROTECTION EQUIPMENT}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{WATER HOLDING
(DENMARK) APS
19,635,100 Company}

^{Street :
TEGLVAERKSVEJ, 47 5220 ODENSE}

^{SO DENMARK}

^{Town : -}

^{Postcode : -}

^{Country : Netherlands}

FORMER SHAREHOLDER(S)

^{WORMALD
INTERNATIONAL LTD
24,998}

^{GOH NANCY
1}

^{REGINALD JOHN
FRANK
1}

^{WATER HOLDINGS
CORPORATION 19,635,100}

HOLDING COMPANY

^{WATER HOLDING
(DENMARK) APS UF30407H %: 100}

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: 20/06/2007}

^{Balance
Sheet Date:
30/09/2005
30/09/2004}

^{Number
of weeks:
52
52}

^{Consolidation
Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible
Fixed Assets:
123,490
96,797}

^{Total Fixed Assets: 123,490 96,797}

^{Inventories: 3,401,741 1,840,327}

^{Receivables: 4,787,829 4,151,782}

^{Cash,
Banks, Securities:
18,339
554,114}

^{Other
current assets:
1,669,041
2,063,896}

^{Total Current Assets: 9,876,950 8,610,119}

^{TOTAL ASSETS: 10,000,440 8,706,916}

^{--- LIABILITIES ---}

^{Equity
capital:
19,635,100
19,635,100}

^{Profit
& lost Account:
-25,295,968
-27,493,600}

^{Total Equity: -5,660,868 -7,858,500}

^{Trade
Creditors:
1,147,951 1,709,545}

^{Prepay.
& Def. charges:
1,220,213
1,942,675}

^{Due
to Bank:
39,108}

^{Other
Short term Liab.:
13,254,036
12,913,196}

^{Total short term Liab.: 15,661,308 16,565,416}

^{TOTAL LIABILITIES: 15,661,308 16,565,416}

^{PROFIT
& LOSS ACCOUNT}

^{Net
Sales
20,061,544
10,246,445}

^{Purchases,Sces
& Other Goods:
15,639,062
8,406,226}

^{Gross
Profit: 4,422,482 1,840,219}

^{Result
of ordinary operations
2,590,757
-825,577}

^{NET
RESULT BEFORE TAX:
2,197,632
-1,111,562}

^{Net
income/loss year:
2,197,632
-1,111,562}

^{Interest
Paid:
393,042
285,973}

^{Depreciation: 58,177 47,432}

^{Directors
Emoluments:
891,881
714,783}

^{Wages
and Salaries:
820,419
396,747}

^{Financial
Income:
83
12}

RATIOS

^{30/09/2005 30/09/2004}

^{Turnover
per employee: 5015386.00 2561611.25}

^{Net
result / Turnover(%): 0.11 -0.11}

^{Fin.
Charges / Turnover(%): 0.02 0.03}

^{Stock
/ Turnover(%): 0.17 0.18}

^{Net
Margin(%): 10.95 -10.85}

^{Return
on Equity(%): -38.82 14.14}

^{Return
on Assets(%): 21.98 -12.77}

^{Net
Working capital: -5784358.00 -7955297.00}

^{Cash
Ratio: 0.00 0.03}

^{Quick
Ratio: 0.31 0.28}

^{Current
ratio: 0.63 0.52}

^{Receivables
Turnover: 85.92 145.87}

^{Leverage
Ratio: -2.77 -2.11}

^{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}

^{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 SEEN TO BE LIMITED IN VIEW OF THE FOLLOWING:}

^NET
WORTH:

^{THE BALANCE SHEET
WAS CONSIDERED INADEQUATE AS NET WORTH WAS IN THE NEGATIVE REGION DESPITE NET
WORTH IMPROVED BY 27.97% FROM S$-7,858,500 IN 2004 TO S$-5,660,868 IN 2005.
THIS WAS DUE TO LOWER ACCUMULATED LOSSES OF S$-25,295,968 (2004:
S$-27,493,600); A RISE OF 7.99% FROM THE PRIOR YEAR.}

^LEVERAGE:

^{IN THE SHORT TERM,
SUBJECT WAS LARGELY FINANCED BY OTHER SHORT TERM LIABILITIES WHICH MADE UP
84.63% (2004: 77.95%) AND AMOUNTED TO S$13,254,036 (2004: S$12,913,196). THE
BREAKDOWN IS AS FOLLOWS:}

^{* LOAN FROM
RELATED COMPANY - 2005: S$13,126,8732 (2004: S$12,790,725)}

^{* RELATED
COMPANIES - 2005: S$127,164 (2004: S$122,471)}

^{SUBJECT DID NOT INCUR
ANY LONG TERM LIABILITIES FOR BOTH FINANCIAL YEARS.}

^{AMOUNTS DUE TO
BANKS OF S$39,108 (2005: NIL) CONSISTED OF BANK OVERDRAFTS.}

^{IN ALL, LEVERAGE
RATIO FELL FROM -2.11 TIMES TO -2.77 TIMES AS A RESULT OF A DROP IN TOTAL
LIABILITIES AND AN IMPROVEMENT IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL,
SUBJECT'S LIQUIDITY SITUATION WAS LACKING AS SEEN FROM THE NET WORKING CAPITAL
STILL IN THE NEGATIVE REGION AND CHANGES IN LIQUIDITY RATIOS. CURRENT RATIO
ROSE TO 0.63 TIMES, UP FROM 0.52 TIMES AND QUICK RATIO IMPROVED FROM 0.28 TIMES
IN 2004 TO 0.31 TIMES IN 2005. NET WORKING CAPITAL IMPROVED BY 27.29% FROM
S$-7,955,297 IN 2004 TO S$-5,784,358 IN 2005.}

^{CASH AND CASH
EQUIVALENTS FELL SHARPLY BY 96.69% FROM S$554,114 IN 2004 TO S$18,339 IN 2005.
CASH AND CASH EQUIVALENTS COMPRISES OF:}

^{* CASH AT BANK -
2005: S$17,339 (2004: S$553,614)}

^{* CASH ON HAND -
2005: S$1,000 (2004: S$500)}

^{PROFITABILITY:}

^{REVENUE POSTED AN
INCREASE OF 95.79% FROM S$10,246,445 IN 2004 TO S$20,061,544 IN 2005. THIS RESULTED
IN THE RISE IN NET PROFIT OF 2.98 TIMES TO S$2,197,632 (2004: S$-1,111,562).
HENCE, NET MARGIN ROSE TO 10.95%, UP FROM -10.85%.}

^{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 S$393,042 IN
2005 (2004: S$285,973).}

^{NOTES
TO FINANCIAL STATEMENTS:}

^{THE COMPANY IS
DEPENDENT ON CONTINUED FINANCIAL SUPPORT FROM ITS IMMEDIATE HOLDING COMPANY.
THE DIRECTORS ARE SATISFIED THAT THE FINANCIAL SUPPORT FROM THE IMMEDIATE
HOLDING COMPANY WILL BE AVAILABLE WHEN REQUIRED.}

^{AS SHOWN IN THE
FINANCIAL STATEMENTS, THE COMPANY'S TOTAL LIABILITIES EXCEEDED ITS TOTAL ASSETS
BY $5,660,873 AND $7,858,500 AS AT SEPTEMBER 30, 2005 AND 2004, RESPECTIVELY.
FUNDS HAVE BEEN MADE AVAILABLE BY A RELATED COMPANY. THE FINANCIAL STATEMENTS
OF THE COMPANY HAVE BEEN PREPARED ON A GOING CONCERN BASIS AS THE DIRECTORS OF
THE COMPANY ARE OF THE VIEW THAT THE RELATED COMPANY AND THE IMMEDIATE HOLDING
COMPANY WILL PROVIDE FINANCIAL OBLIGATIONS IF REQUIRED. IF THE FINANCIAL
SUPPORT IS NOT FORTH-COMING, THE GOING CONCERN BASIS WOULD THEN BE
INAPPROPRIATE. IF THE COMPANY IS UNABLE TO CONTINUE IN OPERATIONAL EXISTENCE
FOR THE FORESEEABLE FUTURE, ADJUSTMENTS MAY HAVE TO REFLECT THE SITUATION THAT
ASSETS MAY NEED TO BE REALISED OTHER THAN IN THE AMOUNTS THEY ARE CURRENTLY RECORDED IN THE BALANCE SHEETS. IN ADDITION,
THE COMPANY, MAY HAVE TO PROVIDE FOR FURTHER LIABILITIES THAT MAY ARISE AND TO
RECLASSIFY NON-CURRENT ASSETS AND LIABILITIES RESPECTIVELY.}

BACKGROUND/OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 07/06/1989 AS A LIMITED PRIVATE
COMPANY AND WAS TRADING UNDER THE NAMESTYLE OF "WORMALD ASIA PRIVATE
LIMITED".}

^{ON 15/11/1990,
SUBJECT CHANGED TO THE NAMESTYLE OF "GRINNELL SUPPLY SALES ASIA PTE
LTD".}

^{SUBSEQUENTLY ON
07/02/2003, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "TYCO FIRE & BUILDING
PRODUCTS ASIA PTE. LTD.".}

^{AS AT 16/11/2007,
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 19,635,100 SHARES, OF A VALUE
OF S$19,635,100.}

^{PRINCIPAL
ACTIVITIES:}

^{SUBJECT IS
REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO
BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1)
BUILDING-CLEANING ACTIVITIES (EG JANITORIAL SERVICE);}

^{TRADING &
DISTRIBUTION OF FIRE PROTECTION EQUIPMENT}

^{DURING THE
FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE OF TO
CARRY ON THE BUSINESS OF TRADING AND DISTRIBUTION OF FIRE PROTECTION EQUIPMENT.}

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

^{SUBJECT IS LISTED
IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: NOT LISTED.}

^{SUBJECT ENGAGES IN
THE FOLLOWING ACTIVITY:}

^{* SUPPLIER OF
SPRINKLER SYSTEMS AND RELATED ACCESSORIES}

^{PRODUCTS DEALINGS:}

^{* SPRINKLERS}

^{* VALVES AND
ACCESSORIES}

^{* GROOVED PRODUCTS}

^{* BLAZEMASTER}

^{* SPRINKCAD}

^{* ASSOCIATE
PRODUCTS}

^{QUALITY
ASSESSMENT:}

^{* SQC}

^{NUMBER OF EMPLOYEES:}

^{* 4 (AS OF 2006)}

^{FROM THE
TELE-INTERVIEW CONDUCTED ON 21/11/2007, THE FOLLOWING WAS GATHERED:}

^{IMPORT COUNTRIES:}

^{* UNITED STATES OF
AMERICA}

^{* UNITED KINGDOM}

^{EXPORT COUNTRIES:}

^{* ASIA REGION E.G.
MALAYSIA}

^{NO OTHER TRADE
INFORMATION WAS AVAILABLE ON 21/11/2007.}

^{THE COMPANY IS A
SUBSIDIARY OF WATER HOLDINGS (DENMARK) APS, INCORPORATED IN DENMARK. THE
COMPANY'S ULTIMATE HOLDING COMPANY IS TYCO INTERNATIONAL LTD, INCORPORATED IN
BERMUDA.}

^{NUMBER OF
EMPLOYEES (30 SEPTEMBER)}

^{* COMPANY - 2005:
- (2004: -; 2003: 11; 2002: 8)}

^{REGISTERED AND
BUSINESS ADDRESS:}

^{45 TUAS AVENUE 9}

^{SINGAPORE 639189}

^{DATE OF CHANGE OF
ADDRESS: 30/12/1997}

^{- ASIA - REGIONAL
HEADQUARTERS}

^{- MAIN OFFICE
(DEALS WITH EXPORT/INTERNATIONAL MARKET)}

^{- RENTED PREMISE}

^{- PREMISE OWNED
BY: TYCO FLOW CONTROL PTE. LTD.}

^{OTHER BUSINESS
ADDRESS:}

^{45 GENTING LANE}

^#07-02

^{GENTING WAREHOUSE
COMPLEX}

^{SINGAPORE 349557}

^{- BRANCH OFFICE
(DEALS WITH LOCAL SINGAPORE MARKET)}

^{- RENTED PREMISE}

^{- PREMISE OWNED
BY: HOE LEONG CO (PTE) LTD}

^{WEBSITE : http://www.tyco-fire.com}

^{EMAIL :
tfbasia@tfca.com}

MANAGEMENT

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

^{1) BRUNO MICHEL
VILLARET, A FRENCH}

^{- BASED IN CHINA.}

^{2) NG ENG HUP, A
SINGAPOREAN}

^{- 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