MIRA INFORM REPORT

Report Date :

12.10.2007

IDENTIFICATION DETAILS

Name :	SSAB SWEDISH STEEL PTE. LTD.
Registered Office :	^11^Joo Koon Crescent, Singapore^– 629022
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^03/07/1995
Com. Reg. No.:	^199504644H
Legal Form :	^Pte Ltd
Line of Business :	Distributors and Importers and Exporters of Steel Plates

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 :	Small Company
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

SSAB SWEDISH STEEL PTE. LTD.

Line Of Business 

DISTRIBUTORS AND IMPORTERS AND EXPORTERS OF STEEL PLATES

Parent Company

SSAB OXELOSUND AB

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : S$27,371,652

Networth : S$2,717,331

Paid-Up Capital : S$80,000

Net result : S$1,534,924

Net Margin(%) : 5.61

Return on Equity(%) : 56.49

Leverage Ratio : 2.53

COMPANY IDENTIFICATION

^{Subject Company: SSAB SWEDISH STEEL PTE. LTD.}

^{Former Name: -}

^{Business Address: 11 JOO KOON CRESCENT}

^{Town: SINGAPORE}

^{Postcode: 629022}

^{County: -}

^{Country: Singapore}

^{Telephone: 6863 1622}

^{Fax: 6863 0622}

^{ROC Number: 199504644H}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 03/07/1995}

^{Previous Legal Form: -}

^{Summary year: 31/12/2006}

^{Sales: 27,371,652}

^{Net worth: 2,717,331}

^{Capital: -}

^{Paid-Up Capital: 80,000}

^{Employees: Not available}

^{Net result: 1,534,924}

^{Share value: -}

^{Auditor: MHC & ASSOCIATES, DFK}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 03/07/1995}

PRINCIPAL(S)

^{GUNNAR CHRISTER NYLUND G5772999L Director}

DIRECTOR(S)

^{MATS ERIK HAGLUND 23089483 Director}

^{Appointed on: 16/01/2004}

^{Street: ISAKSLUNDSVAGEN 87}

^{Town: OXELOSUND}

^{Postcode: 613 38}

^{Country: Sweden}

^{BENGT OLOF MARTINSSON 32535400 Director}

^{Appointed on: 18/04/1996}

^{Street: VETEGATAN 5}

^{Town: TRANAS}

^{Postcode: 573 37}

^{Country: Sweden}

^{PER OLOF BIRGER STARK 43396326 Director}

^{Appointed on: 08/04/1997}

^{Street: KORALLVAGEN 33 S-61337}

^{Town: OXELOSUND}

^{Postcode: -}

^{Country: Sweden}

^{GUNNAR CHRISTER NYLUND G5772999L Director}

^{Appointed on: 29/03/2007}

^{Street: 991 BUKIT TIMAH ROAD}

^#09-07

^{MAPLEWOODS CONDOMINIUM}

^{Town: SINGAPORE}

^{Postcode: 589630}

^{Country: Singapore}

^{CHOO TZY SIONG S1713305E Company Secretary}

^{Appointed on: 30/06/2006}

^{Street: 54 HUME AVENUE}

^#05-04

^SUMMERHILL

^{Town: SINGAPORE}

^{Postcode: 596231}

^{Country: Singapore}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{METAL SPECIALTIES Code:13890}

^{BASED ON ACRA'S RECORD AS AT 08/10/2007}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

^{2) MANUFACTURING OF STRUCTURAL METAL PRODUCTS (EG METAL SECTIONS,}

CHARGES

No Charges On Premises/Property In Our Database

BANKERS

No Banker Information In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{SSAB OXELOSUND AB 80,000 Company}

^{Street: 613 80 OXELOSUND SWEDEN}

^{Town: -}

^{Postcode: -}

^{Country: Sweden}

HOLDING COMPANY

^{SSAB OXELOSUND AB UF16162H %: 100}

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)

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: 03/07/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 243,213 221,600}

^{Total Fixed Assets: 243,213 221,600}

^{Inventories: 1,101,600}

^{Receivables: 6,454,827 3,906,679}

^{Cash,Banks,Securities: 2,742,852 1,684,257}

^{Other current assets: 147,216 50,211}

^{Total Current Assets: 9,344,895 6,742,747}

^{TOTAL ASSETS: 9,588,108 6,964,347}

^{--- LIABILITIES}

^{Equity capital: 80,000 80,000}

^{Profit & loss Account: 2,637,331 1,102,407}

^{Total Equity: 2,717,331 1,182,407}

^{L/T deferred taxes: 7,000 7,000}

^{Other long term Liab.: 28,750 -}

^{Total L/T Liabilities: 35,750 7,000}

^{Trade Creditors: 6,288,080 5,490,451}

^{Prepay. & Def. charges: 127,370 82,872}

^{Short term liabilities: 15,000 -}

^{Provisions: 379,000 167,000}

^{Other Short term Liab.: 25,577 34,617}

^{Total short term Liab.: 6,835,027 5,774,940}

^{TOTAL LIABILITIES: 6,870,777 5,781,940}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 27,371,652 17,445,730}

^{Purchases,Sces & Other Goods: 24,436,368 15,360,961}

^{Gross Profit: 2,935,284 2,084,769}

^{NET RESULT BEFORE TAX: 1,913,296 818,836}

^{Tax: 378,372 167,196}

^{Net income/loss year: 1,534,924 651,640}

^{Interest Paid: 1,950 -}

^{Depreciation: 125,321 88,420}

^{Directors Emoluments: 250,000 250,000}

^{Wages and Salaries: 433,120 373,562}

^{Financial Income: 11,651 4,864}

RATIOS

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

^{Net result / Turnover(%): 0.06 0.04}

^{Stock / Turnover(%): 0.00 0.06}

^{Net Margin(%): 5.61 3.74}

^{Return on Equity(%): 56.49 55.11}

^{Return on Assets(%): 16.01 9.36}

^{Net Working capital: 2509868.00 967807.00}

^{Cash Ratio: 0.40 0.29}

^{Quick Ratio: 1.35 0.97}

^{Current ratio: 1.37 1.17}

^{Receivables Turnover: 84.90 80.62}

^{Leverage Ratio: 2.53 4.89}

^{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 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 1.30 TIMES FROM S$1,182,407 IN 2005 TO S$2,717,331 IN 2006.}

^{THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$2,637,331 (2005: S$1,102,407); A RISE OF 1.39 TIMES FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 92.00% (2005: 95.07%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$6,288,080 (2005: S$5,490,451). THE BREAKDOWN IS AS FOLLOWS:}

^{-TRADE PAYABLES - 2006: S$358,818 (2005: S$275,321)}

^{-IMMEDIATE HOLDING COMPANY - 2006: S$4,756,047 (2005: S$3,432,064)}

^{-RELATED COMPANIES - 2006: S$1,173,215 (2005: S$1,783,066)}

^{SUBJECT'S LONG TERM LAIBILITIES ROSE BY 4.11 TIMES TO S$35,750 (2005: S$7,000), AND CONSIST OF THE FOLLOWING:}

^{-FINANCE LEASE LIABILITY - 2006: S$28,750 (2005: - )}

^{-DEFERRED TAXATION - 2006: S$7,000 (2005: S$7,000)}

^{IN ALL, LEVERAGE RATIO FELL FROM 4.89 TIMES TO 2.53 TIMES AS A RESULT OF A MORE THAN PROPORTIONATE RISE IN TOTAL EQUITY AS COMPARED TO THE RISE IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 1.59 TIMES TO S$2,509,868 (2005: S$967,807).}

^{CURRENT RATIO ROSE TO 1.37 TIMES, UP FROM 1.17 TIMES AND QUICK RATIO IMPROVED TO 1.35 TIMES FROM 0.97 TIMES IN 2005.}

^{SIMILARLY, CASH AND CASH EQUIVALENTS ROSE SHARPLY BY 62.85% TO S$2,742,852}

^{(2005: S$1,684,257).}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 56.90% FROM S$17,445,730 IN 2005 TO S$27,371,652 AND NET PROFIT SURGED BY 1.36 TIMES TO S$1,534,924 (2005: S$651,640).}

^{HENCE, NET MARGIN ROSE TO 5.61% (2005: 3.74%).}

^{DEBT SERVICING:}

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

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 03/07/1995 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER THE PRESENT NAMESTYLE OF "SSAB SWEDISH STEEL PTE. LTD.".}

^{AS AT 08/10/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 80,000 SHARES, OF A VALUE OF S$80,000.}

^{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)}

^{2) MANUFACTURING OF STRUCTURAL METAL PRODUCTS (EG METAL SECTIONS, CORRUGATED SHEETS); MANUFACTURE OF STRUCTURAL METAL PRODUCTS}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE THOSE OF DISTRIBUTORS AND IMPORTERS AND EXPORTERS OF STEEL PLATES.}

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

^ACTIVITIES

^{- MANUFACTURER AND EXPORTER OF STEEL PLATES}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 12/10/2007.}

^{THE IMMEDIATE HOLDING COMPANY IS SSAB OXELOSUND AB AND THE ULTIMATE HOLDING COMPANY IS SSAB SVENSKT STAL AB. BOTH COMPANIES ARE INCORPORATED IN SWEDEN.}

^{NUMBER OF EMPLOYEES (31 DECEMBER)}

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

^{REGISTERED AND BUSINESS ADDRESS:}

^{11 JOO KOON CRESCENT}

^{SINGAPORE 629022}

^{DATE OF CHANGE OF ADDRESS: 01/12/1996}

^{- RENTED PREMISE}

^{- OWNED BY: TONG LEE ENGINEERING WORKS PTE LTD}

^WEBSITE:

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

^EMAIL:

^{ts.tiong@ssabox.com}

MANAGEMENT

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

^{1) MATS ERIK HAGLUND, A SWEDISH}

^{- BASED IN SWEDEN}

^{2) BENGT OLOF MARTINSSON, A SWEDISH}

^{- BASED IN SWEDEN}

^{3) PER OLOF BIRGER STARK, A SWEDISH}

^{- BASED IN SWEDEN}

^{4) GUNNAR CHRISTER NYLUND, A SWEDISH}

^{- 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