MIRA INFORM REPORT

Report Date :

11.10.2007

IDENTIFICATION DETAILS

Name :	SMITHS DETECTION [ASIA PACIFIC] PTE LTD
Registered Office :	^3 Toh Tuck Link, # 04-01, German Districentre, Singapore – 596228
Country :	Singapore
Financials (as on) :	31.07.2006
Date of Incorporation :	^12/01/1995
Com. Reg. No.:	^199500253G
Legal Form :	^Pte Ltd
Line of Business :	Sale, Installation and Service Maintenance of all kinds of X Ray Examination Systems, Explosive, Drug and Metal Detectors and Security Systems

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

Subject Company

SMITHS DETECTION [ASIA PACIFIC] PTE LTD

Line Of Business 

SALE, INSTALLATION AND SERVICE MAINTANENCE OF ALL KINDS OF X RAY EXAMINATION SYSTEMS, EXPLOSIVE, DRUG AND METAL DETECTORS AND SECURITY SYSTEMS

Parent Company

SMITHS DETECTION GROUP

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : S$118,239,000

Networth : S$21,943,000

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

Net result : S$-80,000

Net Margin(%) : -0.07

Return on Equity(%) : -0.36

Leverage Ratio : 1.87

COMPANY IDENTIFICATION

^{Subject Company: SMITHS DETECTION [ASIA PACIFIC] PTE LTD}

^{Former Name: HEIMANN SYSTEMS (ASIA PACIFIC)}

^{Business Address: 3 TOH TUCK LINK}

^{# 04-01}

^{GERMAN DISTRICENTRE}

^{Town: SINGAPORE}

^{Postcode: 596228}

^{County: -}

^{Country: Singapore}

^{Telephone: 6466 1700}

^{Fax: 6469 2506}

^{ROC Number: 199500253G}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{HEIMANN SYSTEMS (ASIA PACIFIC) PTE LTD DATE: 03/09/2003}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 12/01/1995}

^{Previous Legal Form: -}

^{Summary year: 31/07/2006}

^{Sales: 118,239,000}

^{Net worth: 21,943,000}

^{Capital: -}

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

^{Employees: 30}

^{Net result: -80,000}

^{Share value: -}

^{Auditor: PRICEWATERHOUSECOOPERS}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 12/01/1995}

PRINCIPAL(S)

^{MAGINNIS MALCOLM PETER S2719658F Director}

DIRECTOR(S)

^{HANS ALBERT LINKENBACH 4200028312 Director}

^{Appointed on: 22/02/1995}

^{Street: SCHLANGENBAD-WAMBACH}

^{IM ALTEN ROTH 17}

^{Town: -}

^{Postcode: -}

^{Country: Germany}

^{MAGINNIS MALCOLM PETER S2719658F Director}

^{Appointed on: 14/04/2004}

^{Street: 153 CHUAN DRIVE}

^{Town: SINGAPORE}

^{Postcode: 554572}

^{Country: Singapore}

^{LIM CHOI HWEE S7330244G Company Secretary}

^{Appointed on: 31/12/2004}

^{Street: 200B SENGKANG EAST ROAD}

^#02-24

^{Town: SINGAPORE}

^{Postcode: 542200}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{CHEN WEN WOAN ANGELA S1715798A}

^{PETER GEORG JUERGENS 3334064810}

^{FRANZ HOCHSCHEIDT 6083106017}

ACTIVITY(IES)

FIRE PROTECTION EQUIPMENT Code:8930

^{BASED ON ACRA'S RECORD AS AT 04/10/2007}

^{1. RETAIL SALE OF SECURITY AND FIRE-FIGHTING EQUIPMENT; WHOLESALE OF SECURITY AND FIRE-FIGHTING EQUIPMENT}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{BNP PARIBAS}

SHAREHOLDERS(S)

^{SMITHS DETECTION GROUP 4,000,000 Company}

^{Street: 765 FINCHLEY ROAD}

^{Town: LONDON NW 118DS}

^{Postcode: -}

^{Country: United Kingdom}

FORMER SHAREHOLDER(S)

^{HEIMANN SYSTEMS GMBH 100,000}

HOLDING COMPANY

^{SMITHS DETECTION GROUP UF40485G %: 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: DOWNWARD}

^{Financial Situation: AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 02/04/2007}

^{Balance Sheet Date: 31/07/2006 31/07/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 965,000 714,000}

^{Tangible Fixed Assets: 118,000 157,000}

^{Total Fixed Assets: 1,083,000 871,000}

^{Inventories: 19,793,000 11,590,000}

^{Receivables: 26,404,000 26,927,000}

^{Short Term Fin. Assets: 1,027,000 -}

^{Cash,Banks,Securities: 2,718,000 4,971,000}

^{Other current assets: 11,956,000 10,428,000}

^{Total Current Assets: 61,898,000 53,916,000}

^{TOTAL ASSETS: 62,981,000 54,787,000}

^{--- LIABILITIES}

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

^{Profit & loss Account: 17,943,000 17,831,000}

^{Total Equity: 21,943,000 21,831,000}

^{Trade Creditors: 23,202,000 15,594,000}

^{Prepay. & Def. charges: 4,696,000 5,622,000}

^{Due to Bank: 4,419,000 -}

^{Provisions: 3,455,000 5,052,000}

^{Other Short term Liab.: 5,266,000 6,688,000}

^{Total short term Liab.: 41,038,000 32,956,000}

^{TOTAL LIABILITIES: 41,038,000 32,956,000}

PROFIT & LOSS ACCOUNT

^{Net Sales 118,239,000 116,589,000}

^{Purchases,Sces & Other Goods: 90,482,000 89,083,000}

^{Gross Profit: 27,757,000 27,506,000}

^{NET RESULT BEFORE TAX: 862,000 9,347,000}

^{Tax: 942,000 2,098,000}

^{Net income/loss year: -80,000 7,249,000}

^{Interest Paid: - 8,000}

^{Depreciation: 103,000 76,000}

^{Dividends: - 4,800,000}

^{Directors Emoluments: 495,000 446,000}

^{Wages and Salaries: 4,906,000 3,954,000}

^{Financial Income: 2,000 10,000}

RATIOS

^{31/07/2006 31/07/2005}

^{Turnover per employee: 3941300.00 3886300.00}

^{Net result / Turnover(%): -0.00 0.06}

^{Stock / Turnover(%): 0.17 0.10}

^{Net Margin(%): -0.07 6.22}

^{Return on Equity(%): -0.36 33.21}

^{Return on Assets(%): -0.13 13.23}

^{Dividends Coverage: - 1.51}

^{Net Working capital: 20860000.00 20960000.00}

^{Cash Ratio: 0.07 0.15}

^{Quick Ratio: 0.71 0.97}

^{Current ratio: 1.51 1.64}

^{Receivables Turnover: 80.39 83.14}

^{Leverage Ratio: 1.87 1.51}

^{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

^{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 0.51% FROM S$21,831,000 IN 2005 TO S$21,943,000 IN 2006.}

^{THIS WAS DUE TO HIGHER RETAINED EARNINGS OF S$17,943,000 (2005: S$17,831,000); A RISE OF 0.63% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 56.54% (2005: 47.32%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$23,202,000 (2005: S$15,594,000). THE BREAKDOWN IS AS FOLLOWS:}

^{-THIRD PARTIES - 2006: S$1,102,000 (2005: S$1,057,000)}

^{-RELATED CORPORATIONS - 2006: S$22,100,000 (2005: S$14,537,000)}

^{BANK OVERDRAFTS AMOUNTED TO S$4,419,000 IN 2006 (2005: NOT AVAILABLE).}

^{SUBJECT DID NOT INCUR ANY LONG TERM LIABILITIES DURING THE FINANCIAL YEAR UNDER REVIEW.}

^{IN ALL, LEVERAGE RATIO ROSE FROM 1.51 TIMES TO 1.87 TIMES AS A RESULT OF A RISE IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS EVEN THOUGH NET WORKING CAPITAL FELL BY 0.48% TO S$20,860,000 (2005: S$20,960,000).}

^{CURRENT RATIO FELL TO 1.51 TIMES, DOWN FROM 1.64 TIMES AND QUICK RATIO DECREASED TO 0.71 TIMES FROM 0.97 TIMES IN 2005.}

^{SIMILARLY, CASH AND CASH EQUIVALENTS FELL SHARPLY BY 45.32% TO S$2,718,000}

^{(2005: S$4,971,000).}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 1.42% FROM S$116,589,000 IN 2005 TO S$118,239,000 BUT SUBJECT SUFFERED A NET LOSS OF S$80,000 IN 2006, AS COMPARED TO THE NET PROFIT OF S$7,249,000 IN 2005.}

^{HENCE, NET MARGIN FELL INTO NEGATIVE REGION OF 0.07% (2005: 6.22%).}

^{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, SUBJECT DID NOT INCUR ANY INTEREST EXPENSES DURING THE FINANCIAL YEAR.}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEM IS CLASSIFIED UNDER PRELIMINARY:}

^{-DEFERRED INCOME TAX ASSET - 2006: S$965,000 (2005: S$714,000)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{EVENTS AFTER BALANCE SHEET DATE}

^{ON 31 OCTOBER 2006, THE COMPANY ENTERED INTO AN AGREEMENT TO TRANSFER ITS AUSTRALIA AND NEW ZEALAND BUSINESS INCLUDING THE RELATED PROPERTY, PLANT AND EQUIPMENT, INVENTORY, OTHER ASSETS, AND LIABILITIES TO TWO RELATED PARTIES FOR A CONSIDERATION OF A$12.4M AND NZ$5.8M RESPECTIVELY. THE COMPANY WILL RECORD A GAIN OF A$4.3M AND NZ$3.6M FROM THE TRANSFER OF ITS AUSTRALIA AND NEW ZEALAND BUSINESS RESPECTIVELY.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 12/01/1995 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "ASIA-PACIFIC SCAN PTE. LTD.".}

^{SUBSEQUENTLY ON 03/09/2003, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE OF "SMITHS DETECTION [ASIA PACIFIC] PTE LTD".}

^{AS AT 04/10/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 4,000,000 SHARES, OF A VALUE OF S$4,000,000.}

^{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 SECURITY AND FIRE-FIGHTING EQUIPMENT; WHOLESALE OF SECURITY AND FIRE-FIGHTING EQUIPMENT}

^{THE PRINCIPAL ACTIVITIES OF THE COMPANY RELATE TO THE SALE, INSTALLATION AND SERVICE MAINTANENCE OF ALL KINDS OF X RAY EXAMINATION SYSTEMS, EXPLOSIVE, DRUG AND METAL DETECTORS AND SECURITY SYSTEMS.}

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

^{BACKGROUND INFORMATION}

^{- SMITHS DETECTION IS A GLOBAL LEADER IN THE PROVISION OF THREAT DETECTION AND SCREENING TECHNOLOGIES FOR MILITARY, TRANSPORTATION, HOMELAND SECURITY AND RESILIENCE APPLICATIONS.}

^{- IT APPLIES MULTIPLE TECHNOLOGIES TO ACHIEVE FAST RESULTS AND TO IDENTIFY A RANGE}

^{OF THREATS: BIOLOGICAL AGENTS - CHEMICAL AGENTS & TICS - EXPLOSIVES - NARCOTICS}

^{- WEAPONS AND ILLEGAL ITEMS.}

^{- ITS TECHNOLOGIES ARE ALSO APPLIED FOR SPECIAL APPLICATIONS SUCH AS CONTRABAND}

^{DETECTION, FORENSIC WORK, FUEL VAPOUR MONITORING, METEOROLOGICAL MEASURING AND}

^{VIDEO NETWORK MONITORING.}

^{- IT PROVIDES FULLY INTEGRATED SYSTEMS INCLUDING BIO DETECTION AND IDENTIFICATION,}

^{PROTECTIVE SHELTERS, METEOROLOGICAL MEASUREMENT, MOBILE SECURITY CHECKPOINTS AND}

^{FOR CHEM/BIO APPLICATIONS.}

^ACTIVITIES

^{- SALES, SERVICE, MAINTENANCE AND INSTALLATION, SPECIALISING IN X-RAY INSPECTION}

^{UNITS FOR BAGGAGE SCREENING, SYSTEMS FOR TRUCK AND CONTAINER INSPECTION AND}

^{AUTOMATIC DETECTION OF EXPLOSIVES}

^{NUMBER OF EMPLOYEES}

^{- ABOUT 30}

^PRODUCTS

^{- BIOLOGICAL AGENT DETECTION}

^{- CHEMICAL AGENT DETECTION}

^{- CHEMICAL IDENTIFICATION}

^{- METAL DETECTION}

^{- REDIATION DETECTION}

^{- ETC.}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 11/10/2007.}

^{WITH EFFECT FROM 28 JULY 2005, THE IMMEDIATE HOLDING CORPORATION IS SMITHS DETECTION GROUP LTD, A CORPORATION INCORPORATED IN UNITED KINGDOM.}

^{PRIOR TO THAT DATE, THE IMMEDIATE HOLDING CORPORATION WAS SMITHS GROUP HOLDINGS NETHERLANDS BV, A CORPORATION INCORPORATED IN THE NETHERLANDS.}

^{NUMBER OF EMPLOYEES (31 JULY)}

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

^{REGISTERED AND BUSINESS ADDRESS:}

^{3 TOH TUCK LINK}

^#04-01

^{GERMAN DISTRICENTRE}

^{SINGAPORE 596228}

^{DATE OF CHANGE OF ADDRESS: 05/11/1999}

^WEBSITE:

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

^EMAIL:

^{sh-singapore@smiths-heimann-sg.com}

^{service@smiths-heimann-sg.com}

MANAGEMENT

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

^{1) HANS ALBERT LINKENBACH, A GERMAN}

^{- BASED IN GERMANY}

^{2) MAGINNIS MALCOLM PETER, AN AUSTRALIAN}

^{- BASED IN SINGAPORE}

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