MIRA INFORM REPORT

Report Date :

01.10.2007

IDENTIFICATION DETAILS

Name :	^DONALD MCARTHY TRADING PTE LTD
Registered Office :	^138 Cecil Street, #04-03, Cecil Court^, 069538,
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	22/11/1997
Legal Form :	Private Limited
Line of Business :	^Manufacturing and Trading in Basic Precious and Non-Ferrous Metals

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 :	Regular
Litigation :	Clear

Company Name

^{DONALD MCARTHY TRADING PTE LTD}

Line Of Business 

^{MANUFACTURING AND TRADING IN BASIC PRECIOUS AND NON-FERROUS METALS}

Parent Company

^Nil

Financial Elements

^{FY 2005}

^COMPANY

^{Sales : S$60,424,683}

^{Networth : S$4,710,691}

^{Paid-Up Capital : S$8,000,000}

^{Net result : S$859,135}

^{Net Margin(%) : 1.42}

^{Return on Equity(%) : 18.24}

^{Leverage Ratio : 1.15}

COMPANY IDENTIFICATION

^{Subject Company : DONALD MCARTHY TRADING PTE LTD}

^{Former Name : -}

^{Business Address : 138 CECIL STREET, #04-03, CECIL COURT}

^{Town : SINGAPORE}

^{Postcode : 069538}

^{County : -}

^{Country : Singapore}

^{Telephone : 6224 0477}

^{Fax : 6224 0477/ 6227 5711/ 6225 3711}

^{ROC Number : 199707973R}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Exempt Pte Ltd}

^{Date Inc. : 22/11/1997}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : 60,424,683}

^{Net worth : 4,710,691}

^{Capital : -}

^{Paid-Up Capital : 8,000,000}

^{Employees : 15}

^{Net result : 859,135}

^{Share value : -}

^{Auditor : MGI N RAJAN ASSOCIATES}

REFERENCES

^{Litigation : Yes}

^{Company status: TRADING}

^{Started : 22/11/1997}

PRINCIPAL(S)

^{VINOD KUMAR RAMGOPAL DIDWANIA S2601458A Director}

DIRECTOR(S)

^{VINOD KUMAR RAMGOPAL DIDWANIA S2601458A Director}

^{Appointed on : 12/01/1999}

^{Street : 6 TANJONG RHU ROAD, #05-00, AUSTRAL VIEW}

^{Town : SINGAPORE}

^{Postcode : 436883}

^{Country : Singapore}

^{NIDHI VINOD DIDWANIA S2601459Z Director}

^{Appointed on : 22/11/1997}

^{Street : 6 TANJONG RHU ROAD, #05-00, AUSTRAL VIEW}

^{Town : SINGAPORE}

^{Postcode : 436883}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{LING YEW CHENG @ LING YEW CHEONG S0253856C}

^{CHUA TIAN HOCK S0553699E}

ACTIVITY(IES)

^{METALS - BASE - DEALERS And BROKERS Code:13960}

^{BASED ON ACRA'S RECORD AS AT 26/09/2007}

^{1) MANUFACTURE OF BASIC PRECIOUS AND NON-FERROUS METALS}

CHARGES

^{Comments : CHARGE NO: 200203301 (DISCHARGED - 20/06/2005)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): RAIFFEISEN}

^{Date : 04/08/2005}

^{Comments : CHARGE NO: C200504619}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): STANDARD CHARTERED BANK}

^{Date : 06/08/1999}

^{Comments : CHARGE NO: 199903133 (DISCHARGED - 23/04/2001)}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): BANQUE NATIONALE DE PARIS}

^{Date : 28/05/1999}

^{Comments : CHARGE NO: 199901946 (DISCHARGED - 01/05/2003)}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): MEESPIERSON N.V.}

^{Date : 14/12/2000}

^{Comments : CHARGE NO: 200006130 (DISCHARGED - 14/05/2004)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT}

PREMISES/PROPERTY INFORMATIONS

^{No Premises/Property Information In Our Databases}

BANKERS

^{RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT}

^{MEESPIERSON NV - NETHERLANDS}

^{BNP PARIBAS}

^{OVERSEA-CHINESE BANKING CORPORATION LIMITED}

^{STANDARD CHARTERED BANK (HONG KONG) LIMITED}

^{CITIBANK N.A.}

^{ING BANK N V}

SHAREHOLDERS(S)

^{VINOD KUMAR RAMGOPAL DIDWANIA 4,900,000 Private Person}

^{Street : 6 TANJONG RHU ROAD, #05-00, AUSTRAL VIEW}

^{Town : SINGAPORE}

^{Postcode : 436883}

^{Country : Singapore}

^{NIDHI VINOD DIDWANIA 3,100,000 Private Person}

^{Street : 6 TANJONG RHU ROAD, #05-00, AUSTRAL VIEW}

^{Town : SINGAPORE}

^{Postcode : 436883}

^{Country : Singapore}

FORMER SHAREHOLDER(S)

^{CHUA TIAN HOCK 1}

SUBSIDIARY(IES)

^{No Participation In Our Database}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

LITIGATION(S)

^{Type Of Case Magistrate Court - W/S}

^{Case Number MCS01022/2006}

^{Defendant DONALD MCARTHY TRADING PTE LTD ROC #: 199707973R}

^{Type Of Case Magistrate Court - W/S}

^{Case Number MCS23888/2005}

^{Defendant DONALD MCARTHY TRADING PTE LTD ROC #: 199707973R}

^{Type Of Case Magistrate Court - W/S}

^{Case Number MCS04479/2005}

^{Defendant DONALD MCARTHY TRADING PTE LTD ROC #: 199707973R}

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

^{Case Number: HWS00221/2005}

^{Defendant DONALD MCARTHY TRADING PTE LTD ROC #: 199707973R}

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

^{Case Number: MCS009626/2002}

^{Defendant DONALD MCARTHY TRADING PTE LTD ROC #: 199707973R}

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

^{Case Number: DCS004063/2002}

^{Defendant DONALD MCARTHY TRADING PTE LTD ROC #: 199707973R}

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

^{Case Number: DCS001967/2000}

^{Defendant DONALD MCARTHY TRADING PTE LTD ROC #: 199707973R}

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

^{Case Number: MCS061029/1999}

^{Defendant DONALD MCARTHY TRADING PTE LTD ROC #: 199707973R}

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

^{Case Number: MCS005061/2000}

^{Defendant DONALD MCARTHY TRADING PTE LTD ROC #: 199707973R}

FINANCIAL ELEMENTS

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

^{Audit Qualification:"MILD" UNCERTAINTIES "MILD" UNCERTAINTIES "MILD" UNCERTAINTIES}

^{Date Account Lodged : 29/09/2006}

^{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: 144,305 65,398 29,151}

^{Total Fixed Assets: 144,305 65,398 29,151}

^{Inventories: 1,983,117 495,616 142,105}

^{Receivables: 4,384,951 2,678,320 3,413,391}

^{Cash,Banks,Securities: 268,374 521,616 321,789}

^{Other current assets: 3,333,834 3,034,425 2,649,583}

^{Total Current Assets: 9,970,276 6,729,977 6,526,868}

^{TOTAL ASSETS: 10,114,581 6,795,375 6,556,019}

^LIABILITIES

^{Equity capital: 8,000,000 8,000,000 8,000,000}

^{Profit & loss Account: -3,289,309 -4,148,444 -4,695,891}

^{Total Equity: 4,710,691 3,851,556 3,304,109}

^{Other long term Liab.: 11,082 - -}

^{Total L/T Liabilities: 11,082 - -}

^{Trade Creditors: 3,553,987 1,791,291 2,767,945}

^{Prepay. & Def. charges: 126,630 210,098 99,407}

^{Short term liabilities: 9,625 - -}

^{Provisions: - 8,000 15,817}

^{Other Short term Liab.: 1,702,566 934,430 368,741}

^{Total short term Liab.: 5,392,808 2,943,819 3,251,910}

^{TOTAL LIABILITIES: 5,403,890 2,943,819 3,251,910}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 60,424,683 44,193,886 37,730,138}

^{Purchases,Sces & Other Goods: 55,076,625 39,953,524 36,182,179}

^{Gross Profit: 5,348,058 4,240,362 1,547,959}

^{NET RESULT BEFORE TAX: 861,635 547,447 -5,001,702}

^{Tax: 2,500 - -}

^{Net income/loss year: 859,135 547,447 -5,001,702}

^{Interest Paid: 1,161 - -}

^{Depreciation: 50,605 31,762 23,319}

^{Directors Emoluments: 60,000 60,000 200,000}

^{Wages and Salaries: 441,748 317,761 510,716}

^RATIOS

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

^{Net result / Turnover(%): 0.01 0.01 -0.13}

^{Stock / Turnover(%): 0.03 0.01 0.00}

^{Net Margin(%): 1.42 1.24 -13.26}

^{Return on Equity(%): 18.24 14.21 -151.38}

^{Return on Assets(%): 8.49 8.06 -76.29}

^{Net Working capital: 4577468.00 3786158.00 3274958.00}

^{Cash Ratio: 0.05 0.18 0.10}

^{Quick Ratio: 0.86 1.09 1.15}

^{Current ratio: 1.85 2.29 2.01}

^{Receivables Turnover: 26.12 21.82 32.57}

^{Leverage Ratio: 1.15 0.76 0.98}

^{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

^{AUDITOR'S REPORT}

^OPINION

^{TRADE AND OTHER RECIEVABLES INCLUDE AN AMOUNT OF S$1,237,786 FROM A RELATED PARTY AND WE ARE UNABLE TO VERIFY THE RECOVERY OF THE SAME.}

^{ATTENTION IS DRAWN TO THE FINANCIAL STATEMENTS WITH REGARDS TO AN AMOUNT PAYABLE BY THE COMPANY. THE COMPANY HAS NOT ACCOUNTED THE DIFFERENCE IN CLAIM AND INTEREST DUES WHICH IS APPROXIMATELY USD299,081.}

^{HAD A PROVISION BEEN MADE FOR THE ABOVE, THE PROFIT FOR THE YEAR WOULD HAVE BEEN REDUCED TO A LOSS OF S$883,990.}

^{THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE LIMITED TO FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 22.31% FROM S$3,851,556 IN 2004 TO S$4,710,691 IN 2005.}

^{THIS WAS DUE TO LOWER ACCUMULATED LOSSES OF S$3,289,309 (2004: ACCUMULATED LOSSES OF S$4,148,444); A FALL OF 20.71% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 65.90% (2004: 60.85%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$3,553,987 (2004: S$1,791,291). THE BREAKDOWN IS AS FOLLOWS:}

^{-TRADE CREDITORS - 2005: S$2,443,686 (2004: S$979,737)}

^{-RELATED PARTIES - 2005: S$1,110,301 (2004: S$811,554)}

^{SUBJECT'S LONG TERM LIABILITY, WHICH CONSIST OF FINANCE LEASE OBLIGATIONS, AMOUNTED TO S$11,082.}

^{IN ALL, LEVERAGE RATIO ROSE FROM 0.76 TIMES TO 1.15 TIMES AS A RESULT OF A MORE THAN PROPORTIONATE RISE IN TOTAL LIABILITIES AS COMPARED TO THE RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 20.90% TO S$4,577,468 (2004: S$3,786,158).}

^{HOWEVER, CURRENT RATIO FELL TO 2.29 TIMES, DOWN FROM 1.85 TIMES AND QUICK RATIO DECREASED TO 0.86 TIMES FROM 1.09 TIMES IN 2004. SIMILARLY, CASH AND CASH EQUIVALENTS ALSO FELL SHARPLY BY 48.55% TO S$268,374 (2004: S$521,616).}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 36.73% FROM S$44,193,886 IN 2004 TO S$60,424,683 AND NET PROFIT ROSE BY 56.93% TO S$859,135 (2004: S$547,447).}

^{HENCE, NET MARGIN ROSE TO 1.42% (2004: 1.24%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.}

^{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.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 22/11/1997 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "DONALD MCARTHY TRADING PTE LTD".}

^{THE COMPANY HAS A ISSUED AND PAID-UP CAPITAL OF 8,000,000 SHARES OF A VALUE OF S$8,000,000.}

PRINCIPAL ACTIVITIES

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

^{1) MANUFACTURE OF BASIC PRECIOUS AND NON-FERROUS METALS}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE THOSE OF MANUFACTURING AND TRADING IN BASIC PRECIOUS AND NON-FERROUS METALS.}

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

^{SUBJECT'S MAIN ACTIVITY IS TRADING IN METALS. IN ADDITION, SUBJECT HAS ITS OWN WAREHOUSING AND PROCESSING FACILITIES AT SINGAPORE, AND STORAGE FACILITIES AT ANTWERP IN BELGIUM, AS WELL AS IN MALAYSIA AND AUSTRALIA.}

^PRODUCTS:

^{* NON-FERROUS PRIMARY METALS - ALUMINIUM, COPPER, LEAD, NICKEL, TIN, ZINC.}

^{* NON-FERROUS SEMI-FINISHED PRODUCTS - WIRE RODS, SHEETS, PLATES, COILS, FOILS,}

^{PROFILES, EXTRUSIONS.}

^{* NON-FERROUS SCRAPS- COPPER, BRASS, ALUMINIUM, ZINC, LEAD, SCRAPS PER ISRI SPECS.}

^{NON-FERROUS ALLOYS/HIGH HEAT/SPECIAL METALS.}

^{* FERROUS METALS/STEEL PRIMES & SCRAPS- BILLETS, DEFORMED BARS, WIRE RODS, SHEETS,}

^{STRUCTURALS ELECTRICAL STEEL, STAINLESS STEEL.}

^{* FERRO-ALLOYS, PIG IRON - FE-SI, FE-MN, FE-NI, FE-TI, FE-W, ETC.}

^{SUBJECT'S MAJOR MARKETS ARE IN THE SOUTHEAST ASIAN COUNTRIES, THE INDIAN SUBCONTINENT, NORTH AMERICA, EUROPE AND THE FAR EAST.}

^{THE COMPANY OPERATES WITH REPRESENTATIVES AND ASSOCIATES IN:}

^{* EUROPE - (FRANCE, GERMANY, SPAIN, ITALY, BELGIUM, THE NETHERLANDS.)}

^{* UNITED KINGDOM}

^{* SWEDEN}

^{* SLOVENIA, POLAND}

^{* U S A}

^{* AUSTRALIA}

^{* NEW ZEALAND}

^{* CHINA, TAIWAN, KOREA, JAPAN}

^{* MALAYSIA, INDONESIA, PHILIPPINES, THAILAND}

^{* INDIA, PAKISTAN}

^{* U.A.E, KUWAIT}

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

^{* SINGAPORE BUSINESS FEDERATION}

^{NO OTHER UPDATED TRADE INFORMATION WAS MADE AVAILABLE ON 01/10/2007.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: 15 (2004: 12; 2003: 12; 2002: 16; 2001: 16; 2000: 16)}

REGISTERED AND BUSINESS ADDRESS:

^{138 CECIL STREET}

^#04-03

^{CECIL COURT}

^{SINGAPORE 069538}

^{DATE OF CHANGE OF ADDRESS: 01/10/2004}

^{-- RENTED PREMISE}

^{-- PREMISE OWNED BY: CECIL COURT INVESTMENT(S) PTE LTD}

^{WEBSITE: www.donaldmcarthy.com}

^{EMAIL: nferrous@pacific.net.sg}

MANAGEMENT

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

^{1) VINOD KUMAR RAMGOPAL DIDWANIA, A SINGAPORE PERMANENT RESIDENT}

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

^{DONALD MCARTHY SPECIAL METALS PTE. LTD.}

^{2) NIDHI VINOD DIDWANIA, A SINGAPORE PERMANENT RESIDENT}

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

^{OLYMPIC INVESTMENTS PTE LTD}

^{EARTH RESOURCES PTE LTD}

^{DONALD & MCARTHY PTE LTD}

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