MIRA INFORM REPORT

Report Date :

08.10.2007

IDENTIFICATION DETAILS

Name :	YI-LAI TRADING PTE. LTD.

Registered Office :	^{50 Lorong 21 Geylang, Singapore – 388645}

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	^16/11/1982

Com. Reg. No.:	^198204735E

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Trading and Distribution of Tiles.

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

YI-LAI TRADING PTE. LTD.

Line Of Business

TRADING AND DISTRIBUTION OF TILES

Parent Company

YI-LAI BERHAD

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

COMPANY

Sales : S$5,013,752

Networth : S$2,841,694

Paid-Up Capital : S$500,000

Net result : S$371,233

Net Margin(%) : 7.40

Return on Equity(%) : 13.06

Leverage Ratio : 0.13

COMPANY IDENTIFICATION

^{Subject Company : YI-LAI
TRADING PTE.LTD.}

^{Former Name : -}

^{Business Address: 50
LORONG 21 GEYLANG}

^{Town: SINGAPORE}

^{Postcode: 388645}

^{County: -}

^{Country: Singapore}

^{Telephone: 6842
0163}

^{Fax: 6846 7937}

^{ROC Number: 198204735E}

^Reg.^Town^{:
-}

SUMMARY

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

^{Legal Form: Exempt
Pte Ltd}

^{Date Inc.:
16/11/1982}

^{Previous Legal Form: -}

^{Date of Change: 16/11/1982}

^{Summary year : 31/12/2006}

^{Sales: 5,013,752}

^{Networth : 2,841,694}

^{Capital: -}

^{Paid-Up Capital: 500,000}

^{Employees: 12}

^{Net result : 371,233}

^{Share value: -}

^{AUDITOR : Y.H.
LIM & CO}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 16/11/1982}

PRINCIPAL(S)

^{LIM OON KOK S0715181J Director}

DIRECTOR(S)

^{CHOONG BUAT KEN S0117509B Company Secretary}

^{Appointed on : 03/01/1997}

^{Street : 18 STRATTON DRIVE}

^{Town: SINGAPORE}

^{Postcode: 806877}

^{Country:
Singapore}

^{LIM OON KOK S0715181J Director}

^{Appointed on : 16/11/1982}

^{Street : 23 PARKSTONE ROAD}

^{Town: SINGAPORE}

^{Postcode: 437713}

^{Country: Singapore}

^{LIAO FEUN CHU S2196623A Director}

^{Appointed on : 16/11/1982}

^{Street : 23 PARKSTONE ROAD}

^{Town: SINGAPORE}

^{Postcode: 437671}

^{Country: Singapore}

^{LIM TECK SHYAN S1819204G Director}

^{Appointed on : 05/06/2000}

^{Street : 61,
JALAN DUKU}

^{Town: SINGAPORE}

^{Postcode: 429224}

^{Country: Singapore}

^{HSIEH YU-TIEN S2671942I Director}

^{Appointed on : 21/10/1994}

^{Street : 367 WOODLAND AVENUE
5}

^#08-454

^{Town: SINGAPORE}

^{Postcode: 730367}

^{Country: Singapore}

^{LIAO JENG NENG S2716896E Director}

^{Appointed on : 28/02/2006}

^{Street : 23 PARKSTONE ROAD}

^{Town: SINGAPORE}

^{Postcode: 437671}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{YU HENG-MIN M3151887}

ACTIVITY(IES)

^{CERAMICS - EQUIPMENT And SUPPLIES Code:3850}

^{BUILDING MATERIALS Code:2920}

^{TILE - CEREMIC - MFRS And DISTRS Code:21600}

^{BASED ON ACRA'S RECORD AS AT
02/10/2007}

^{1)
MANUFACTURE OF ARTICLES OF CONCRETE, CEMENT AND PLASTER; TRADE IN
CERAMIC HOMOGENEOUS AND OTHER TILES}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

No Bankers Information In Our Database

SHAREHOLDERS(S)

^{YI-LAI BERHAD
500,000 Company}

^{Street : SUITE 14A2, LEVEL 4
MENARA ANSAR}

^{65 JALAN TRUS}

^{JOHOR BARU}

^{Town: JOHOR}

^{Postcode: 80000}

^{Country: Malaysia}

FORMER SHAREHOLDER(S)

^{LIM OON KOK 300,000}

^{LIAO FEUN CHU 200,000}

HOLDING COMPANY

^{YI-LAI BERHAD UF33132W % :
100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : UPWARD

Financial Situation: AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 23/05/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005 31/12/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^---
ASSETS

^{Tangible Fixed Assets: 157,833 82,325 76,421}

^{Total Fixed Assets: 157,833 82,325 76,421}

^{Inventories: 26,461 1,567 1,848}

^{Receivables: 1,327,397 1,579,772 1,665,648}

^{Cash,Banks, Securitis: 1,612,520 1,136,384 907,360}

^{Other current assets: 77,753 42,505 7,048}

^{Total Current Assets: 3,044,131 2,760,228 2,581,904}

^{TOTAL ASSETS: 3,201,964 2,842,553 2,658,325}

^{---
LIABILITIES}

^{Equity capital: 500,000 500,000 500,000}

^{Profit & loss
Account: 2,341,694 1,970,461 1,727,094}

^{TOTAL EQUITY: 2,841,694 2,470,461 2,227,094}

^{Trade Creditors: 82,797 206,084 70,829}

^{Prepay. & Def.
charges: 78,473 64,008 33,537}

^{Provisions: 199,000 102,000 46,200}

^{Other Short term Liab.: - - 280,665}

^{Total short term
Liab.: 360,270 372,092 431,231}

^{TOTAL LIABILITIES: 360,270 372,092 431,231}

^{PROFIT & LOSS
ACCOUNT}

^{Net Sales 5,013,752 4,585,900 4,133,736}

^{Cost
of Goods Sold: 3,542,428 3,526,961 3,313,034}

^{Gross Profit: 1,471,324 1,058,939 820,702}

^{Result of ordinary
operations 470,231 303,672 213,127}

^{NET RESULT BEFORE TAX: 468,233 303,303 197,005}

^{Tax : 97,000 59,936 41,983}

^{Net income/loss year: 371,233 243,367 155,022}

^{Interest Paid: - - 16,122}

^{Depreciation: 46,604 37,975 33,497}

^{Directors Emoluments: 173,354 162,817 160,582}

^{Wages and Salaries: 291,216 339,737 330,346}

^{Financial Income: 31,352 10,205 4,873}

RATIOS

^{31/12/2006 31/12/2005 31/12/2004}

^{Turnover per employee: 417812.67 382158.33 344478.00}

^{Net result /
Turnover(%): 0.07 0.05 0.04}

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

^{Net Margin(%): 7.40 5.31 3.75}

^{Return on Equity(%): 13.06 9.85 6.96}

^{Return on Assets(%): 11.59 8.56 5.83}

^{Net Working capital: 2683861.00 2388136.00 2150673.00}

^{Cash Ratio: 4.48 3.05 2.10}

^{Quick Ratio: 8.16 7.30 5.97}

^{Current ratio: 8.45 7.42 5.99}

^{Receivables Turnover: 95.31 124.01 145.06}

^{Leverage Ratio: 0.13 0.15 0.19}

^{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 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 15.03% FROM S$2,470,461 IN FY 2005 TO S$2,841,694 IN
FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$2,341,694 (2005:
S$1,970,461); A RISE OF 18.84% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY
FINANCED BY PROVISIONS WHICH MADE UP 55.24% (2005: 27.42%) OF THE TOTAL CURRENT
LIABILITIES AND AMOUNTED TO S$199,000 (2005: S$102,000). THE BREAKDOWN IS AS
FOLLOWS:}

^{-PROVISION FOR TAXATION - 2006: S$199,000 (2005: S$102,000)}

^{IN ALL, LEVERAGE RATIO FELL FROM 0.15 TIMES
TO 0.13 TIMES AS A RESULT OF A DECLINE IN TOTAL LIABILITIES AND A RISE IN TOTAL
EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS
PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS.
CURRENT RATIO ROSE TO 8.45 TIMES, UP FROM 7.42 TIMES AND QUICK RATIO IMPROVED
TO 8.16 TIMES FROM 7.30 TIMES IN FY 2005.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY
12.38% FROM S$2,388,136 IN FY 2005 TO S$2,683,861.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-CASH ON HAND - 2006: S$2,000 (2005: S$2,000)}

^{-CASH IN BANKS - 2006: S$331,670 (2005: S$339,236)}

^{-SHORT TERM FIXED DEPOSIT - 2006: S$1,278,850
(2005: S$795,148)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 9.33% FROM
S$4,585,900 IN FY 2005 TO S$5,013,752 AND NET PROFIT ROSE BY 52.54% TO
S$371,233 (2005: S$243,367). HENCE, NET MARGIN ROSE TO 7.40% (2005: 5.31%).}

^{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$23,327 IN FY 2005 (2004: S$2,003).}

^{AVERAGE COLLECTION PERIOD HAS SHORTENED FROM
124.01 DAYS TO 95.31 DAYS. A SHORTER AVERAGE COLLECTION PERIOD POSES LESSER
RISK OF TURNING INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT
SERVICING ABILITY MAY BE AFFECTED IF TRADE RECEIVABLES ARE NON 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 16/11/1982 AS A LIMITED
EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS
"YI-LAI TRADING PTE.LTD.".}

^{AS AT 02/10/2007, SUBJECT HAS AN ISSUED AND
PAID-UP CAPITAL OF 500,000 SHARES OF A VALUE OF S$500,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1)
MANUFACTURE OF ARTICLES OF CONCRETE, CEMENT AND PLASTER; TRADE IN
CERAMIC HOMOGENEOUS AND OTHER TILES}

^{2)
WHOLESALE OF GENERAL HARDWARE (EG LOCKS, HINGES); TRADE IN OTHER
BUILDING MATERIALS}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE
PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF TRADING AND DISTRIBUTION OF
TILES.}

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

^{PRODUCTS DEALINGS:}

^{* CERAMIC AND PORCELAIN TILES}

^{TRADE NAME:}

^{* ALPHA}

^{IMPORT COUNTRY:}

^{* MALAYSIA}

^{EXPORT COUNTRIES:}

^{* AUSTRALIA}

^{* BRUNEI}

^{* BELGIUM}

^{* INDIA}

^{* JAPAN}

^{* PAKISTAN}

^{* NEW ZEALAND}

^{* THAILAND}

^{* TAIWAN}

^{* ETC}

^{PROJECT REFERENCES:}

^{* UPGRADING - KIM TIAN PRECINCT}

^{* SENGKANG N1 C20}

^{* KALLANG / WHAMPOA RC35}

^{* UPGRADING - MEILING STREET}

^{* BRICK WORKS PRECINCT}

^{* HOLLAND
PARK VIEW PRECINCT}

^{* BT. MERAH RC 32}

^{* BT. MERAH RC 33A}

^{* BT. PANJANG N6 C2 & 3}

^{* UPGRADING - KALLANG BASIN}

^{* UPGRADING - TELOK BLANGAH DRIVE/HEIGHTS (MUP BATCH
13)}

^{* BT. BATOK N3 C11}

^{* PUNGGOL EAST C 28 - DESIGN & BUILD}

^{* BT. PANJANG N6 C5}

^{* SENGKANG N2 C27}

^{* PASIR RIS CONDOMINIUM}

^{* SAVANNAH
PARK CONDOMINIUM}

^{* WARREN
VIEW CONDOMINIUM}

^{* CHOA CHU KANG N6 C12}

^{* WOODLANDS N6 C21 (DESIGN & BUILD)}

^{* UPGRADING - ANG MO KIO AVE 1}

^{* UPGRADING - KELANTAN CENTRE (MUP 16)}

^{* ETC}

^{FROM THE TELE-INTERVIEW CONDUCTED ON
08/10/2007, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{* 2007: 12}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON
08/10/2007.}

^{THE IMMEDIATE AND ULTIMATE HOLDING COMPANY IS
YI-LAI BERHAD, A COMPANY INCORPORATED IN MALAYSIA. THE HOLDING COMPANY IS
THE REGISTERED SHAREHOLDER OF 500,000 ORDINARY SHARES THAT REPRESENT 100% PAID
UP CAPITAL OF THE COMPANY.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: NOT
AVAILABLE)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{50 LOR 21 GEYLANG}

^SINGAPORE³⁸⁸⁴⁶⁵

^{- RENTED PREMISE}

^{- OWNED BY XING-YE PTE.LTD.}

^{- DATE OF CHANGE OF ADDRESS: 04/08/2006}

^WEBSITE:

^{http://www.alpha-tiles.org (PARENT COMPANY'S
WEBSITE)}

^EMAIL:

^{yilai@singnet.com.sg}

MANAGEMENT

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

^{1) LIM OON KOK, A SINGAPOREAN}

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

^{YI-LAI INDUSTRY BHD}

^{2) LIM TECK SHYAN, A SINGAPOREAN}

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

^{YI-LAI INDUSTRY BHD}

^{3) HSIEH YU-TIEN, A SINGAPORE
PERMANENT RESIDENT}

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

^{4) LIAO JENG NENG, A SINGAPORE
PERMANENT RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIP 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