MIRA INFORM REPORT

Report Date :

26.11.2007

IDENTIFICATION DETAILS

Name :	G-STEELMET PTE. LIMITED
Registered Office :	^3 Shenton Way, #08-09, Shenton House, Singapore – 068805
Country :	Singapore
Financials (as on) :	30.09.2004
Date of Incorporation :	^18/06/1987
Com. Reg. No.:	^198701726M
Legal Form :	^Exempt Pte Ltd
Line of Business :	Trading of Commodities (Sugar, Bean, Rice, Alloys, Metal) and Metals (Non-Ferrous) and Scrap Metal

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear

Subject Company

G-STEELMET PTE. LIMITED

Line Of Business 

TRADING OF COMMODITIES (SUGAR, BEAN, RICE, ALLOYS, METAL) AND METALS (NON-FERROUS) AND SCRAP METAL

Parent Company

-

Financial Elements

FY 2004

COMPANY

Sales : S$102,653,021

Networth : S$4,920,026

Paid-Up Capital : S$4,000,000

Net result : S$169,073

Net Margin(%) : 0.16

Return on Equity(%) : ^3.44

Leverage Ratio : 1.60

Based on the with the Accounting and Corporate Regulatory Authority (ACRA) as at 23/11/2007, the paid-up share capital has increased to S$5,500,000.

Rating

Credit Rating : Sing $ 5,000,001 to Sing $ 10,000,000

COMPANY IDENTIFICATION

^{Subject Company : G-STEELMET PTE. LIMITED}

^{Former Name : STEELMET PTE LTD}

^{Business Address: 3 SHENTON WAY}

^#08-09

^{SHENTON HOUSE}

^{Town: SINGAPORE}

^{Postcode: 068805}

^{County: -}

^{Country: Singapore}

^{Telephone: 6224 3377}

^{Fax: 6224 0944}

^{ROC Number: 198701726M}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{STEELMET PTE LTD}

^{JMK-SELTRON PTE LTD}

^{AGIO-SELTRON PTE LTD}

SUMMARY

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

^{Legal Form: Exempt Pte Ltd}

^{Date Inc.: 18/06/1987}

^{Previous Legal Form: -}

^{Summary year : 30/09/2004}

^{Sales: 102,653,021}

^{Networth : 4,920,026}

^{Capital: 5,000,000}

^{Paid-Up Capital: 4,000,000}

^{Employees: 6}

^{Net result : 169,073}

^{Share value: 1}

^{AUDITOR : S P MOHNOT & CO}

^{BASED ON ACRA'S RECORD AS AT 23/11/2007}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 5,500,000 SGD 5,500,000.00}

^{PAID-UP ORDINARY - SGD 5,500,000.00}

REFERENCES

^{Litigation: Yes}

^{Company status : TRADING}

^{Started : 18/06/1987}

PRINCIPAL(S)

^{TAN SOW WAN S1415680A Director}

DIRECTOR(S)

^{SHARMA SUBHASH CHANDRA S2580430I Director}

^{Appointed on : 16/08/1989}

^{Street : 20 PEACH GARDEN}

^{PEACH GARDEN}

^{Town: SINGAPORE}

^{Postcode: 437618}

^{Country: Singapore}

^{SAVITA SHARMA S2580431G Director}

^{Appointed on : 06/10/1993}

^{Street : 20 PEACH GARDEN}

^{PEACH GARDEN}

^{Town: SINGAPORE}

^{Postcode: 437618}

^{Country: Singapore}

^{VIVEK JOSHI A455761 Director}

^{Appointed on : 02/07/1996}

^{Street : 20 PEACH GARDEN}

^{PEACH GARDEN}

^{Town: SINGAPORE}

^{Postcode: 437618}

^{Country: Singapore}

^{TAN SOW WAN S1415680A Director}

^{Appointed on : 26/08/1989}

^{Street : 724 YISHUN STREET 71}

^#04-169

^{Town: SINGAPORE}

^{Postcode: 760724}

^{Country: Singapore}

^{TAN SOW WAN S1415680A Company Secretary}

^{Appointed on : 26/08/1989}

^{Street : 724 YISHUN STREET 71}

^#04-169

^{Town: SINGAPORE}

^{Postcode: 760724}

^{Country: Singapore}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{METAL SPECIALTIES Code:13890}

^{STEEL DISTRIBUTORS And WAREHOUSES Code:20350}

^{COMMODITY TRADERS Code:5010}

^{BASED ON ACRA'S RECORD AS AT 23/11/2007}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); IMPORT & EXPORT INDUSTRIAL/CONSUMER ELECTRONICS, STEEL/METAL/ IMPORT & EXPORT & AGENT OF COMPUTER HARDWARE & SOFTWARE.}

CHARGES

^{Date: 26/05/2007}

^{Comments : CHARGE NO: C200703985}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): STANDARD CHARTERED BANK}

^{Date: 26/05/2007}

^{Comments : CHARGE NO: C200703984}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): STANDARD CHARTERED BANK}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{BANK OF INDIA}

^{STANDARD CHARTERED BANK}

SHAREHOLDERS(S)

^{TAN SOW WAN 200,000 Private Person}

^{Street : 724 YISHUN STREET 71}

^#04-169

^{Town: SINGAPORE}

^{Postcode: 760724}

^{Country: Singapore}

^{SHARMA SUBHASH CHANDRA 3,000,000 Private Person}

^{Street : 20 PEACH GARDEN}

^{PEACH GARDEN}

^{Town: SINGAPORE}

^{Postcode: 437618}

^{Country: Singapore}

^{SAVITA SHARMA 1,900,000 Private Person}

^{Street : 20 PEACH GARDEN}

^{PEACH GARDEN}

^{Town: SINGAPORE}

^{Postcode: 437618}

^{Country: Singapore}

^{VIVEK JOSHI 400,000 Private Person}

^{Street : 20 PEACH GARDEN}

^{PEACH GARDEN}

^{Town: SINGAPORE}

^{Postcode: 437618}

^{Country: Singapore}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : UNKNOWN

Payments : REGULAR

Trend : LEVEL

Financial Situation: UNKNOWN

LITIGATION(S)

Type Of Case: High Court - W/S

Case Number: HWS00420/96

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

Type Of Case: Magistrate Court - W/S

Case Number: MCS23479/2004

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

Type Of Case: Magistrate Court - W/S

Case Number: MCS35392/2003

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

Type Of Case: Magistrate Court - W/S

Case Number: MCS26578/2002

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

Type Of Case: Magistrate Court - W/S

Case Number: MCS31257/2001

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

Type Of Case: Magistrate Court - W/S

Case Number: MCS28749/2001

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

Type Of Case: Magistrate Court - W/S

Case Number: MCS26325/2001

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

Type Of Case: Magistrate Court - W/S

Case Number: MCS17384/2000

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

Type Of Case: Magistrate Court - W/S

Case Number: MCS60779/1999

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

Type Of Case: Magistrate Court - W/S

Case Number: MCS60709/1999

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

Type Of Case: Magistrate Court - W/S

Case Number: MCS22488/1998

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

Type Of Case: District Court - W/S

Case Number: DCS00370/1997

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

Type Of Case: Magistrate Court - W/S

Case Number: MCS18201/1995

Defendant G-STEELMET PTE. LIMITED ROC # : 198701726M

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 27/10/2005}

^{Balance Sheet Date: 30/09/2004 30/09/2003 30/09/2002}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Intangible Fixed Assets: 16,393 17,953 2,379}

^{Total Fixed Assets: 16,393 17,953 2,379}

^{Inventories: 2,852,444 3,169,071 3,802,814}

^{Receivables: 8,529,416 6,775,963 9,427,333}

^{Cash,Banks, Securitis: 1,370,065 1,250,942 1,176,556}

^{Other current assets: 15,802 16,063 34,336}

^{Total Current Assets: 12,767,727 11,212,039 14,441,039}

^{TOTAL ASSETS: 12,784,120 11,229,992 14,443,418}

^{--- LIABILITIES}

^{Equity capital: 4,000,000 4,000,000 4,000,000}

^{Profit & loss Account: 920,026 950,953 832,625}

^{Total Equity: 4,920,026 4,950,953 4,832,625}

^{L/T deffered taxes: 2,797 3,145 600}

^{Other long term Liab.: 1,260 2,772 -}

^{Total L/T Liabilities: 4,057 5,917 600}

^{Trade Creditors: 3,392,235 1,636,893 5,646,295}

^{Prepay. & Def. charges: 574,123 663,540 650,043}

^{Short term liabilities: 1,512 1,512 -}

^{Due to Bank: 2,820,486 2,003,535 1,191,929}

^{Provisions: 59,171 30,765 38,380}

^{Other Short term Liab.: 1,012,510 1,936,877 2,083,546}

^{Total short term Liab.: 7,860,037 6,273,122 9,610,193}

^{TOTAL LIABILITIES: 7,864,094 6,279,039 9,610,793}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 102,653,021 93,622,517 85,588,530}

^{Gross Profit: 1,972,388 2,122,624 -}

^{Result of ordinary operations 555,897 603,856 599,824}

^{NET RESULT BEFORE TAX: 200,591 182,620 175,649}

^{Tax : 31,518 14,292 15,339}

^{Net income/loss year: 169,073 168,328 160,310}

^{Interest Paid: 355,306 421,236 424,175}

^{Depreciation: 7,913 6,187 1,225}

^{Dividends: - 50,000 -}

^{Directors Emoluments: 140,000 184,760 162,000}

^{Purchases,Sces & Other}

^{Goods: 100,680,633 91,499,893 -}

^{Wages and Salaries: 100,286 68,109 -}

^{Financial Income: 3,994 8,889 18,298}

RATIOS

^{30/09/2004 30/09/2003 30/09/2002}

^{Turnover per employee: 17108836.83 15603752.83 14264755.00}

^{Stock / Turnover(%): 0.03 0.03 0.04}

^{Net Margin(%): 0.16 0.18 0.19}

^{Return on Equity(%): 3.44 3.40 3.32}

^{Return on Assets(%): 1.32 1.50 1.11}

^{Dividends Coverage: 3.37 3.37}

^{Net Working capital: 4907690.00 4938917.00 4830846.00}

^{Cash Ratio: 0.17 0.20 0.12}

^{Quick Ratio: 1.26 1.28 1.10}

^{Current ratio: 1.62 1.79 1.50}

^{Receivables Turnover: 29.91 26.06 39.65}

^{Leverage Ratio: 1.60 1.27 1.99}

^{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

^{NOTE: THE 2004 FINANCIALS WERE OUTDATED AND SERVE AS A REFERENCE ONLY. ADVERSE CHECKS ON THE LOCAL DIRECTORS WOULD BE CONDUCTED.}

^{LIMITED EXEMPT PRIVATE COMPANY}

^{WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT OWNED BY ANY CORPORATE BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY IS KNOWN AS AN EXEMPT PRIVATE COMPANY.}

^{AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER AMOUNT OF PRIVACY THAN A PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS DIRECTORS, SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:}

^{1. THE COMPANY IS AN EXEMPT PRIVATE COMPANY.}

^{2. THE AUDITED ACCOUNTS HAVE BEEN TABLED BEFORE THE SHAREHOLDERS AT THE ANNUAL GENERAL MEETING.}

^{3. THE COMPANY IS ABLE TO MEET ITS LIABILITIES.}

^{THERE IS THEREFORE NO DISCLOSURE TO THE PUBLIC OF THE ACCOUNTS OF THE COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITED EVERY YEAR AND APPROVED AT AN ANNUAL GENERAL MEETING OF THE COMPANY.}

^{A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE GOVERNMENT MAY BECOME AN EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN THE NATIONAL INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION.}

^{EXEMPT FROM AUDIT}

^{AN EXEMPT PRIVATE COMPANY IS EXEMPT FROM AUDIT REQUIREMENTS IF THE STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31 MAY 2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED $2.5 MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT OF THE TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE STILL REQUIRED TO MAINTAIN PROPER ACCOUNTING RECORDS.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 18/06/1987 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS}

^{NAMESTYLE AS "AGIO-SELTRON PTE LTD".}

^{SUBSEQUENTLY, THE COMPANY CHANGED TO ITS NAMESTYLE AS "JMK-SELTRON PT LTD".}

^{SUBSEQUENTLY, THE COMPANY CHANGED TO ITS NAMESTYLE AS "STEELMET PTE LTD".}

^{SUBSEQUENTLY, ON 20/07/2007, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "G-STEELMET PTE. LIMITED".}

^{AS AT 23/11/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 5,500,000 SHARES OF A VALUE OF S$5,500,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); IMPORT & EXPORT INDUSTRIAL/CONSUMER ELECTRONICS, STEEL/METAL/ AGRICULTURAL PRODUCTS.}

^{2) BUILDING-CLEANING ACTIVITIES (EG JANITORIAL SERVICE); IMPORT & EXPORT & AGENT OF COMPUTER HARDWARE & SOFTWARE.}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TO CARRY ON THE BUINESS OF IMPORTERS, EXPORTERS, TRADERS, GENERAL MERCHANTS AND COMMISSION AGENTS FOR ALL KINDS OF METALS AND THEIR ALLOYS AND OTHER GOODS AND MERCHANDISE OF ALL AND ANY DESCRIPTION.}

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

^{THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: STEEL DISTRIBUTORS & WAREHOUSES.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* TRADING OF COMMODITIES (SUGAR, BEAN, RICE, ALLOYS, METAL) AND METALS (NON-FERROUS) AND SCRAP METAL}

^{SUBJECT IS A LEADING EXPORT HOUSE ENGAGED IN MOST METAL RELATED BUSINESS FROM PRODUCTION AND PROCUREMENT. THEY HAVE A LARGE CONSUMER BASE, FROM INDUSTRIAL PLANTS TO TRADING HOUSES IN ASIA. THEY TRADE IN COMMODITIES AND METALS (NON-FERROUS) AND SCRAP METAL.}

^PRODUCTS:

^{NON FERROUS METALS, CHEMICALS, SCRAP, FERRO ALLOYS ETC}

^{MAIN MARKETS:}

^{* EASTERN ASIA}

^{NO. OF EMPLOYEES (30 SEPTEMBER):}

^{* COMPANY - 2004: 6 (2003: 6; 2002: 4)}

^{NO UPDATED TRADE INFORMATION WAS GATHERED VIA THE TELE-INTERVIEW CONDUCTED ON 26/11/2007. SUBJECT WAS ONLY WILLING TO VERIFY THE BUSINESS ADDRESS AND CONTACT NUMBERS. IMPORTS AND EXPORTS WERE DENIED BY SUBJECT'S PERSONNEL.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{3 SHENTON WAY}

^{#08-09 SHENTON HOUSE}

^{SINGAPORE 068805}

^{DATE OF CHANGE OF ADDRESS: 01/09/2006}

^{- RENTED PREMISE}

^{- PREMISE OWNED BY THE DIRECTOR: SAVITA SHARMA, NIRAAV SHARMA}

^WEBSITE:

^-

^EMAIL:

^{steelmet@qala.com.sg}

MANAGEMENT

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

^{1) VIVEK JOSHI, AN INDIAN}

^{- BASED IN SINGAPORE}

^{2) TAN SOW WAN, A SINGAPOREAN}

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

^{POLY FIELD PTE LTD}

^{ARAMS INTERNATIONAL PTE LTD}

^{3) SHARMA SUBHASH CHANDRA, A SINGAPOREAN}

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

^{POLY FIELD PTE LTD}

^{4) SAVITA SHARMA, A SINGAPORE PERMANENT RESIDENT}

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

^{ARAMS INTERNATIONAL PTE LTD}

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME: TAN SOW WAN}

^{ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: OWNS 1}

^{ANNUAL VALUE: S$6,960}

^{CO-OWNER: LIM BOON SENG}

^{DIRECTOR'S NAME: SHARMA SUBHASH CHANDRA}

^{ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: OWNS 1}

^{ANNUAL VALUE: S$37,200}

^{CO-OWNER: NIL}

^{DIRECTOR'S NAME: SAVITA SHARMA}

^{ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: OWNS 1}

^{ANNUAL VALUE: S$86,900}

^{CO-OWNER: NIRRAV SHARMA}

* 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.

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