MIRA INFORM REPORT

Report Date :

16.10.2007

IDENTIFICATION DETAILS

Name :	MICHAEL WEINIG ASIA PTE LTD
Registered Office :	^18 Woodlands Road^, Woodlands East Industrial Estate, Singapore – 738392
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^19/07/1985
Com. Reg. No.:	^198501593M
Legal Form :	^Pte Ltd
Line of Business :	Sales of Woodworking Machinery

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

MICHAEL WEINIG ASIA PTE LTD

Line Of Business 

SALES OF WOODWORKING MACHINERY

Parent Company

MICHAEL WEINIG AKTIENGESELLSCHAFT

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

COMPANY

Sales : S$14,013,016

Networth : S$2,300,547

Paid-Up Capital : S$20,000

Net result : S$8,692

Net Margin(%) : 0.06

Return on Equity(%) : 0.38

Leverage Ratio : 5.15

COMPANY IDENTIFICATION

^{Subject Company : MICHAEL WEINIG ASIA PTE LTD}

^{Former Name : -}

^{Business Address : 18 WOODLANDS ROAD}

^{WOODLANDS EAST INDUSTRIAL ESTATE}

^{Town : SINGAPORE}

^{Postcode : 738392}

^{County : -}

^{Country : Singapore}

^{Telephone : 67585 178}

^{Fax : 6758 4692}

^{ROC Number : 198501593M}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 19/07/1985}

Previous Legal Form : -

^{Summary year : 31/12/2005}

^{Sales : 14,013,016}

^{Networth : 2,300,547}

^{Capital : -}

^{Paid-Up Capital : 20,000}

^{Employees : -}

^{Net result : 8,692}

^{Share value : 1}

^{Auditor : PRICEWATERHOUSECOOPERS}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 19/07/1985}

PRINCIPAL(S)

^{GERO WENDELIN BAUER G5949313U Managing Director}

DIRECTOR(S)

^{GERO WENDELIN BAUER G5949313U Director}

^{Appointed on : 15/03/2007}

^{Street : 18 WOODLANDS WALK}

^{Town : SINGAPORE}

^{Postcode : 738392}

^{Country : Singapore}

^{GERO WENDELIN BAUER G5949313U Managing Director}

^{Appointed on : 15/03/2007}

^{Street : 18 WOODLANDS WALK}

^{Town : SINGAPORE}

^{Postcode : 738392}

^{Country : Singapore}

^{RAINER ERNST GUSTAV HUNDSDOERFER Director}

^{Appointed on : 01/12/2004}

^{Street : STEINBACHTAL 49}

^{Town : WURZBURG}

^{Postcode : 97082}

^{Country : Germany}

^{WACHTER KARL Director}

^{Appointed on : 08/05/1991}

^{Street : LINDEN STR 9 D-6973}

^{TAUBERBISCHOFSHEIM-DISTELHAUSEN}

^{Town : -}

^{Postcode : -}

^{Country : Germany}

^{LIM LAN SIM JOANNA S1572261D Company Secretary}

^{Appointed on : 29/06/2007}

^{Street : 165 TAMPINES STREET 12}

^#09-305

^{Town : SINGAPORE}

^{Postcode : 521165}

^{Country : Singapore}

^{TAY TUAN LENG S7432140B Company Secretary}

^{Appointed on : 01/12/2004}

^{Street : 635 PASIR RIS DRIVE 1}

^#11-600

^{Town : SINGAPORE}

^{Postcode : 510635}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{LIM HONG GEE S0267390H}

^{FOO SOON SOO S1310912E}

^{WONG FUNG SIN S2012761I}

^{DIETER KURA S63160450}

^{BUCHANAN MALCOM 721475E}

^{KARL WACHTER SE6822697}

^{WILMSEN WOLFGANG SF0533545}

^{BLANK GUENTER FRIEDRICH SG4677635}

^{NEUBERT MATTHIAS WOLF SH1033054}

^{BLANK GUENTER F2441244W}

^{BOON KIM GUAN S2059562J}

^{CHOONG MEE FONG S2564466B}

^{UDO MAUERER F5588016Q}

^{CHRISTOPHER JOHN OSBORNE F5594150P}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{COMMISSION MERCHANTS Code:4990}

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

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

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{DRESDNER BANK}

SHAREHOLDERS(S)

^{MICHAEL WEINIG AKTIENGESELLSCHAFT 20,000 Company}

^{Street : WEINIGSTR 2-4}

^{Town: TAUBERBISCHOFSHEIM}

^{Postcode: 97941}

^{Country: Germany}

FORMER SHAREHOLDER(S)

^{WEIARB B V 20,000}

HOLDING COMPANY

^{MICHAEL WEINIG AKTIENGESELLSCHAFT UF03619G % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : DOWNWARD}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

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

^{Audit Qualification: UNQUALIFIED UNQUALIFIED UNQUALIFIED}

(CLEAN) (CLEAN) (CLEAN)

^{Date Account Lodged: 01/08/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005 31/12/1995}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp 378,994 - -}

^{Tangible Fixed Assets: 1,744,847 1,660,533 2,580,293}

^{Total Fixed Assets: 2,123,841 1,660,533 2,580,293}

^{Inventories: 6,803,450 6,804,672 11,275,424}

^{Receivables: 4,103,427 2,637,628 9,018,948}

^{Cash,Banks, Securitis: 980,657 2,769,168 357,904}

^{Other current assets: 141,168 177,539 260,219}

^{Total Current Assets: 12,028,702 12,389,007 20,912,495}

^{TOTAL ASSETS: 14,152,543 14,049,540 23,492,788}

^{--- LIABILITIES ---}

^{Equity capital: 20,000 20,000 20,000}

^{Profit & lost Account: 2,280,547 2,271,855 11,473,710}

^{Total Equity: 2,300,547 2,291,855 11,493,710}

^{L/T deffered taxes: - - 26,000}

^{Other long term Liab.: - - 220,429}

^{Total L/T Liabilities: - - 246,429}

^{Trade Creditors: 10,105,196 10,288,217 532,523}

^{Prepay. & Def. charges: 389,796 277,615 -}

^{Provisions: - - 852,000}

^{Other Short term Liab.: 1,357,004 1,191,853 10,368,126}

^{Total short term Liab.: 11,851,996 11,757,685 11,752,649}

^{TOTAL LIABILITIES: 11,851,996 11,757,685 11,999,078}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 14,013,016 14,276,308 41,375,433}

^{Purchases,Sces & Other Goods: 9,933,491 10,241,183 -}

^{Gross Profit: 4,079,525 4,035,125 -}

^{NET RESULT BEFORE TAX: 8,692 655,476 3,839,853}

^{Tax : - - -41,599}

^{Net income/loss year: 8,692 697,075 -}

^{Interest Paid: 87,008 - 47,119}

^{Depreciation: 136,800 129,514 179,579}

^{Directors Emoluments: - - 192,451}

^{Wages and Salaries: 1,408,665 1,341,016 154,812}

^{Financial Income: 12,889 10,680 -}

^{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 0.38% FROM S$2,291,855 IN FY 2005 TO S$2,300,547 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$2,280,547 (2005: S$2,271,855); A RISE OF 0.38% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 85.26% (2005: 27.50%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$10,105,196 (2005: S$10,288,217). THE BREAKDOWN IS AS FOLLOWS:}

^{- THIRD PARTIES - 2006: S$111,892 (2005: S$184,774)}

^{- IMMEDIATE HOLDING CORPORATION - 2006: S$5,826,335 (2005: S5,668,841)}

^{- RELATED CORPORATIONS - 2006: S$4,166,969 (2005: S$4,434,602)}

^{IN ALL LEVERAGE RATIO ROSE FROM 5.13 TIMES TO 5.15 TIMES AS A RESULT OF A GREATER RISE IN LIABILITY THAN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE POSITIVE NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.01 TIMES, FROM 1.05 TIMES AND QUICK RATIO FELL TO 0.43 TIMES FROM 0.46 TIMES IN FY 2005.}

^{SIMILARY NET WORKING CAPITAL FELL BY 72.012% FROM S$631,322 IN FY 2005 TO S$176,706.}

^{CASH AND CASH EQUIVALENT CONSIST OF:}

^{- CASH AT BANK AND ON HAND - 2006: S$980,657 (2005: S$2,318,908)}

^{- FIXED DEPOSIT WITH A FINANCIAL INSTITUTE - 2006: NIL (2005: 450,260)}

^{PROFITABILITY:}

^{REVENUE POSTED A DECLINE OF 1.84% FROM S$14,276,308 IN FY 2005 TO S$14,013,016. BUT NET PROFIT FELL BY 98.75% FROM S$697,705 IN FY 2005 TO S$8,692. THIS IS COULD BE DUE TO LOSSES IN NET FOREIGN EXHANGE.}

^REVENUE:

^{- SALE OF GOODS - 2006: S$13,971,028 (2005: S$14,224,812)}

^{- RENDERING OF SERVICES - 2006 S$41,988 (2005: S$51,496)}

^{DEBT SERVICING:}

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

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{- TRADE AND OTHER RECEIVABLES - 2006: S$378,994 (2005: NIL)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 17/07/1985 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "MICHAEL WEINING ASIA PTE LTD".}

^{AS AT 10/10/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 20,000 SHARES, OF A VALUE OF S$20,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE SALE OF WOODWORKING MACHINERY AND ACTING AS A COMMISSION AGENT.}

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

^{PRODUCT DEALING:}

^{* WOODWORKING TOOLS}

^{* WOODWORKING MACHINES}

^{* WOODWORKING EQUIPMENT, SUPPLIES & SERVICES}

^{* WOOD GRINDING MACHINES}

^{* TOOLS, PARTS & SUPPLIES}

^{* TOOLS}

^{* SAWS}

^{* RIP SAWS}

^{* SAWMILL EQUIPMENT, SUPPLIES & SERVICES}

^{* MACHINE TOOLS, ACCESSORIES & SERVICES}

^{* GRINDING MACHINES, EQUIPMENT & ACCESORIES}

^{* GRINDING MACHINES}

^BRANDS:

^{* RAIMANN}

^{* WEINING}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 16/10/2007.}

^{THE COMPANY'S IMMEDIATE HOLDING CORPORATION IS MICHAEL WEINING AG INCORPORATED IN GERMANY. THE ULTIMATE HOLDING CORPORATION IS WEINIG INTERNATIONAL AG, INCORPORATED IN GERMANY.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{18 WOODLANDS WALK}

^{WOODLANDS EAST INDUSTRIAL ESTATE}

^{SINGAPORE 738392}

^{DATE OF CHANGE OF ADDRESS: 25/11/1995}

^WEBSITE:

^-

^EMAIL:

^-

MANAGEMENT

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

^{1) RAINER ERNEST GUSTAV HUNDSOERFER, A GERMAN}

^{- BASED IN GERMANY}

^{2) WACHTER KARL, A GERMAN}

^{- BASED IN GERMANY}

^{3) GERO WENDELIN BAUER, A GERMAN}

^{- 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