MIRA INFORM REPORT

Report Date :

05.10.2007

IDENTIFICATION DETAILS

Name :	NORTEL NETWORKS SINGAPORE PTE LTD
Registered Office :	^151 Lorong Chuan, # 02-01, New Tech Park, Singapore – 556741
Country :	Singapore
Financials (as on) :	31.12.2003
Date of Incorporation :	^11/12/1993
Com. Reg. No.:	^199308201E
Legal Form :	^Pte Ltd
Line of Business :	Sale, Installation and Maintenance of Electronic Telecommunication Systems and Equipment

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear

Subject Company

NORTEL NETWORKS SINGAPORE PTE LTD

Line Of Business 

SALE, INSTALLATION AND MAINTANENCE OF ELECTRONIC TELECOMMUNICATION SYSTEMS AND EQUIPMENT

Parent Company

NORTEL NETWORKS INTERNATIONAL FINANCE & HOLDING B.V.

(PERCENTAGE OF SHAREHOLDING: 99.00%)

Financial Elements

FY 2003

COMPANY

Sales : USD109,877,000

Networth : USD39,573,000

Paid-Up Capital : USD70,133,000

Net result : USD-7,861,000

Net Margin(%) : -7.15

Return on Equity(%) : -19.86

Leverage Ratio : 2.64

COMPANY IDENTIFICATION

^{Subject Company: NORTEL NETWORKS SINGAPORE PTE LTD}

^{Former Name: NORTHERN TELECOM SINGAPORE PTE LTD}

^{Business Address: 151 LORONG CHUAN}

^{# 02-01}

^{NEW TECH PARK}

^{Town: SINGAPORE}

^{Postcode: 556741}

^{County: -}

^{Country: Singapore}

^{Telephone: 6287 2877}

^{Fax: 6380 8888}

^{ROC Number: 199308201E}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{NORTHERN TELECOM SINGAPORE PTE LTD DATE OF CHANGE: 03/05/1999}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 11/12/1993}

^{Previous Legal Form: -}

^{Summary year: 31/12/2003}

^{Sales: 109,877,000}

^{Net worth: 39,573,000}

^{Capital: 250,500,000}

^{Paid-Up Capital: 70,133,000}

^{Employees: Not available}

^{Net result: -7,861,000}

^{Share value: 1}

^{Auditor: DELOITTE & TOUCHE}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 11/12/1993}

PRINCIPAL(S)

^{ANDREW JOHN GRANT S2688080G Director}

DIRECTOR(S)

^{LEOW HOCK MENG EDMUND S1597537G Company Secretary}

^{Appointed on: 20/09/1996}

^{Street: 17 WATTEN VIEW}

^{WATTEN ESTATE}

^{Town: SINGAPORE}

^{Postcode: 287135}

^{Country: Singapore}

^{ANDREW JOHN GRANT S2688080G Director}

^{Appointed on: 01/09/2003}

^{Street: 81 NAMLY DRIVE}

^{SHAMROCK PARK}

^{Town: SINGAPORE}

^{Postcode: 267484}

^{Country: Singapore}

^{JAMES DEMERS BC266916 Director}

^{Appointed on: 02/02/2006}

^{Street: 18 TAIKOO WAN ROAD}

^{FLAT 3A MAPLE MANSION}

^{TAIKOO SHING}

^{Town: -}

^{Postcode: -}

^{Country: Hong Kong}

^{LORRIE DAVID MATHERS G5904432Q Director}

^{Appointed on: 16/10/2006}

^{Street: 41 PINEWOOD GROVE}

^{Town: SINGAPORE}

^{Postcode: 738253}

^{Country: Singapore}

^{ANTHONY ANNE CATHERINE S1347717E Company Secretary}

^{Appointed on: 25/10/2000}

^{Street: 8 LORONG 29 GEYLANG}

^#07-06

^{Town: SINGAPORE}

^{Postcode: 388064}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{VALERIE LIM LEE HUANG S1297748D}

^{DEAS JAMES B383797}

^{THOMPSON DAVID LESLIE EM268974}

^{MACLEAN GEORGE FRANCIS F2128126M}

^{RICHARD JOHN ALLEN S1347717E}

^{DOUGLAS ADAIR SCOTT JR F5506725L}

^{JOHN AMIR ALVI F5584963M}

^{ROBERT L.M. FERGUSON F5619532R}

^{FRANCOIS ANDRE RAPHAEL LANCON 01AE40580}

^{MARK WILLIAM STEVENS F2443420Q}

^{BRIAN GERARD HOPPE E7532607}

ACTIVITY(IES)

^{TELEPHONE EQUIPMENT And SYSTEMS Code:21170}

^{BASED ON ACRA'S RECORD AS AT 29/09/2007}

^{1) RETAIL SALE OF PAGERS, HANDPHONES AND OTHER TELECOMMUNICATIONS APPARATUS;}

CHARGES

^{Date: 16/12/2003}

^{Comments: CHARGE NO: C200306052 (DISCHARGED)}

^{SECURED:0.00 AND ALL MONIES OWING}

^{CHARGEE:CITIBANK N.A}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{CITIBANK NA}

SHAREHOLDERS(S)

^{NORTEL NETWORKS LIMITED 200,000 Company}

^{Street: 8200 DIXIE ROAD SUITE 100}

^{BRAMPTON ONTARIO L6T 5P}

^{Town: -}

^{Postcode: -}

^{Country: Canada}

^{NORTEL NETWORKS INTERNATIONAL 110,810,000 Company}

^{Street: SIRIUSDREEF 17-27 2132 WT}

^{HOOFDDORP THE NETHERLANDS}

^{Town: -}

^{Postcode: -}

^{Country: Netherlands}

FORMER SHAREHOLDER(S)

^{NORTHERN TELECOM LIMITED 200,000}

^{NORTHERN TELECOM INTERNATIONAL 110,810,000}

HOLDING COMPANY

^{NORTEL NETWORKS INTERNATIONAL UF26939C %: 99.00}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: UNKNOWN}

^{Payments: UNKNOWN}

^{Trend: UNKNOWN}

^{Financial Situation: UNKNOWN}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 19/06/2007}

^{Balance Sheet Date: 31/12/2003 31/12/2002 31/12/2001}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 4,760,000 317,000 -}

^{Intangible Fixed Assets: - - 1,561,000}

^{Tangible Fixed Assets: 2,646,000 4,475,000 14,453,000}

^{Investments 1,000 1,000 3,500,000}

^{Total Fixed Assets: 7,407,000 4,793,000 19,514,000}

^{Inventories: 2,090,000 3,192,000 2,090,000}

^{Receivables: 47,796,000 103,848,000 82,144,000}

^{Cash,Banks,Securities: 40,061,000 37,053,000 63,230,000}

^{Other current assets: 46,527,000 17,865,000 49,010,000}

^{Total Current Assets: 136,474,000 161,958,000 196,474,000}

^{TOTAL ASSETS: 143,881,000 166,751,000 215,988,000}

^{--- LIABILITIES}

^{Equity capital: 70,133,000 70,133,000 111,010,000}

^{Profit & loss Account: -30,560,000 -22,699,000 3,896,000}

^{Total Equity: 39,573,000 47,434,000 114,906,000}

^{Other long term Liab.: 10,161,000 5,335,000 -}

^{Total L/T Liabilities: 10,161,000 5,335,000 -}

^{Trade Creditors: 41,225,000 75,163,000 69,958,000}

^{Provisions: 13,827,000 8,455,000 25,752,000}

^{Other Short term Liab.: 39,095,000 30,364,000 5,372,000}

^{Total short term Liab.: 94,147,000 113,982,000 101,082,000}

^{TOTAL LIABILITIES: 104,308,000 119,317,000 101,082,000}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 109,877,000 85,672,000 166,934,000}

^{Purchases,Sces & Other Goods: 61,034,000 53,856,000 -}

^{Gross Profit: 48,843,000 31,816,000 85,926,000}

^{NET RESULT BEFORE TAX: -1,092,000 -13,814,000 21,316,000}

^{Tax: 6,769,000 1,602,000 196,000}

^{Net income/loss year: -7,861,000 -15,416,000 21,120,000}

^{Depreciation: 1,496,000 2,423,000 5,412,000}

^{Wages and Salaries: 11,079,000 21,212,000 -}

RATIOS

^{31/12/2003 31/12/2002 31/12/2001}

^{Net result / Turnover(%): -0.07 -0.18 0.13}

^{Stock / Turnover(%): 0.02 0.04 0.01}

^{Net Margin(%): -7.15 -17.99 12.65}

^{Return on Equity(%): -19.86 -32.50 18.38}

^{Return on Assets(%): -5.46 -9.24 9.78}

^{Net Working capital: 42327000.00 47976000.00 95392000.00}

^{Cash Ratio: 0.43 0.33 0.63}

^{Quick Ratio: 0.93 1.24 1.44}

^{Current ratio: 1.45 1.42 1.94}

^{Receivables Turnover: 156.60 436.38 177.15}

^{Leverage Ratio: 2.64 2.52 0.89}

^{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

^{THE FINANCIAL STATEMENTS FOR THE YEAR 2003 IS CONSIDERED OUTDATED. HENCE, AN ADVERSE CHECK ON THE DIRECTORS IS CONDUCTED.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 11/12/1993 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "GLENBROOK ENTERPRISES PTE LTD". ON 31/12/1993, IT CHANGED TO THE NAMESTYLE OF "NORTHERN TELECOM SINGAPORE PTE LTD".}

^{SUBSEQUENTLY ON 03/05/1999, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE OF "NORTEL NETWORKS SINGAPORE PTE LTD".}

^{AS AT 29/09/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 200,000 ORDINARY SHARES, OF A VALUE OF S$200,000, AND 110,810,000 OTHER SHARES, OF A VALUE OF S$110,810,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) RETAIL SALE OF PAGERS, HANDPHONES AND OTHER TELECOMMUNICATIONS APPARATUS; SALE, INSTALLATION AND MAINTENANCE OF ELECTRONIC TELECOMMUNICATION SYSTEMS AND EQUIPMENT}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY AND ITS BRANCH CONSIST OF THE SALE, INSTALLATION AND MAINTANENCE OF ELECTRONIC TELECOMMUNICATION SYSTEMS AND EQUIPMENT.}

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

^ACTIVITIES

^{- NETWORKING AND COMMUNICATION SERVICES AND INFRASTRUCTURE TO SERVICE PROVIDERS AND ENTERPRISES}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITY}

^{- SINGAPORE CHINESE CHAMBERS OF COMMERCE & INDUSTRY}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 05/10/2007.}

^{SUBJECT IS A SUBSIDIARY OF NORTEL NETWORKS INTERNATIONAL FINANCE & HOLDING B.V., A COMPANY INCORPORATED IN THE NETHERLANDS.}

^{NUMBER OF EMPLOYEES (31 DECEMBER)}

^{- COMPANY - 2003: NOT AVAILABLE (2002: NOT AVAILABLE)}

^{REGISTERED ADDRESS:}

^{1 TEMASEK AVENUE}

^#27-01

^{MILLENIA TOWER}

^{SINGAPORE 039192}

^{BUSINESS ADDRESS:}

^{101 THOMSON ROAD}

^{#06-01 UNITED SQUARE}

^{SINGAPORE 307591}

^WEBSITE:

^{http://www.nortel.com}

^EMAIL:

^{sallylee@nortelnetworks.com}

MANAGEMENT

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

^{1) JAMES DEMERS, A CANADIAN}

^{- BASED IN HONG KONG}

^{2) LORRIE DAVID MATHERS, A CANADIAN}

^{- BASED IN SINGAPORE}

^{3) ANDREW JOHN GRANT, A SINGAPORE PERMANENT RESIDENT}

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

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME: ANDREW JOHN GRANT}

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

^{PROPERTY OWNERSHIP: OWNS 1}

^{ANNUAL VALUE: S$51,600}

^{CO-OWNER (S): NIL}

^{*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