MIRA INFORM REPORT

Report Date :

26.10.2007

IDENTIFICATION DETAILS

Name :	SPECTRIS PTE LTD
Registered Office :	^460 Alexandra Road, #34^-^04a, Psa Building, Singapore – 119963
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^22/04/1981
Com. Reg. No.:	^198101779G
Legal Form :	^Pte Ltd
Line of Business :	General Importers, Exporters, General Merchants, Hire-Purchase Dealers, Commission Agents, Manufacturer's Agent and Representatives, Manufacturers, Processors and Distributors of and Dealers in Articles, Products including Process Control Instrumentation and Merchandise of all kinds and Description whether Manufactured and Semi-Manufactured, Raw State or as Prepared

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

SPECTRIS PTE LTD

Line Of Business 

GENERAL IMPORTERS, EXPORTERS, GENERAL MERCHANTS, HIRE-PURCHASE DEALERS, COMMISSION AGENTS, MANUFACTURER'S AGENT AND REPRESENTATIVES, MANUFACTURERS, PROCESSORS AND DISTRIBUTORS OF AND DEALERS IN ARTICLES, PRODUCTS INCLUDING PROCESS CONTROL INSTRUMENTATION AND MERCHANDISE OF ALL KINDS AND DESCRIPTION WHETHER MANUFACTURED AND SEMI-MANUFACTURED, RAW STATE OR AS PREPARED

Parent Company

SPECTRIS ASIA PACIFIC PTE LTD

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

COMPANY

Sales : US$45,409,000

Networth : US$10,890,000

Paid-Up Capital : US$142,000

Net result : US$4,039,000

Net Margin(%) : 8.89

Return on Equity(%) : 37.09

Leverage Ratio : 1.52

COMPANY IDENTIFICATION

^{Subject Company : SPECTRIS PTE LTD}

^{Former Name : BTG SEA PTE LTD}

^{Business Address: 460 ALEXANDRA ROAD}

^#34-04A

^{PSA BUILDING}

^{Town: SINGAPORE}

^{Postcode: 119963}

^{County: -}

^{Country: Singapore}

^{Telephone: 6377 4521}

^{Fax: 6377 4503}

^{ROC Number: 198101779G}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{BTG SEA PTE LTD}

^{DATE OF CHANGE OF NAME: 06/01/1996}

^{BTG BONNIER TECHNOLOGY PTE LTD}

^{DATE OF CHANGE OF NAME: 10/08/1989}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 22/04/1981}

^{Previous Legal Form: -}

^{Summary year : 31/12/2005}

^{Sales: 45,409,000}

^{Networth : 10,890,000}

^{Capital: -}

^{Paid-Up Capital: 142,000}

^{Employees: 53}

^{Net result : 4,039,000}

^{Share value: -}

^{AUDITOR : KPMG}

^{BASED ON ACRA'S RECORD AS AT 23/10/2007}

^{NO. OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 300,000 SGD 300,000}

^{PAID-UP ORDINARY - SGD 300,000}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 22/04/1981}

PRINCIPAL(S)

^{TAN TENG GUAN S1374503Z Director}

DIRECTOR(S)

^{TAN TENG GUAN S1374503Z Director}

^{Appointed on : 11/12/1995}

^{Street : 9 GREENLEAF VIEW}

^{BAN GUAN PARK}

^{Town: SINGAPORE}

^{Postcode: 279249}

^{Country: Singapore}

^{JAMES CHARLES WEBSTER 093158341 Director}

^{Appointed on : 21/07/2006}

^{Street : 6 OAK DRIVE}

^{HIGHWORTH WITSHIRE, SN6 7BP}

^Town:

^Postcode:

^{Country: United Kingdom}

^{JULIANA LOH JOO HUI S2558149J Company Secretary}

^{Appointed on : 01/07/1995}

^{Street : 22 ST. GEORGE'S ROAD}

^#12-182

^{Town: SINGAPORE}

^{Postcode: 321022}

^{Country: Singapore}

^{DONALD ALBERT RAMBLE S2609181J Director}

^{Appointed on : 11/12/1995}

^{Street : 18 TREVOSE CRESCENT}

^{DUNEARN ESTATE}

^{Town: SINGAPORE}

^{Postcode: 298032}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{GERBER FLAVIO-FELICE 7425188}

^{WIDL GERHARD SR0589742}

^{NIEDHOF SUSANNA-DANIELE S02076485}

^{ANDERSSON GUNNAR DP009551}

^{OTTERSEN JON S 68202027}

^{DUUS JON ANDREAS 00809614}

ACTIVITY(IES)

^{INDUSTRIAL EQUIPMENT And SUPPLIES Code:11830}

^{BASED ON ACRA'S RECORD AS AT 23/10/2007}

^{1) MANUFACTURE OF INDUSTRIAL PROCESS CONTROL EQUIPMENT}

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)

^{SPECTRIS ASIA PACIFIC PTE LTD 300,000 Company}

^{Street : 460 ALEXANDRA ROAD}

^#34-04A

^{PSA BUILDING}

^{Town: SINGAPORE}

^{Postcode: 119963}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{BTG LAUSANNE S A 300,000}

^{BONNIER TECHNOLOGY GROUP 25,000}

HOLDING COMPANY

^{SPECTRIS ASIA PACIFIC PTE LTD 199607774N % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : UPWARD

Financial Situation: AVERAGE

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 26/09/2006}

^{Balance Sheet Date: 31/12/2005 31/12/2004 31/12/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Intangible Fixed Assets: 1,697,000 1,697,000 1,697,000}

^{Tangible Fixed Assets: 24,000 41,000 30,000}

^{Total Fixed Assets: 1,721,000 1,738,000 1,727,000}

^{Inventories: 4,884,000 5,544,000 4,933,000}

^{Receivables: 4,034,000 3,229,000 1,165,000}

^{Cash,Banks, Securitis: 1,799,000 1,604,000 834,000}

^{Other current assets: 12,384,000 8,216,000 4,956,000}

^{Total Current Assets: 23,101,000 18,593,000 11,888,000}

^{TOTAL ASSETS: 24,822,000 20,331,000 13,615,000}

^{--- LIABILITIES}

^{Equity capital: 142,000 142,000 142,000}

^{Profit & loss Account: 10,748,000 6,709,000 3,164,000}

^{Total Equity: 10,890,000 6,851,000 3,306,000}

^{Trade Creditors: 12,702,000 11,874,000 3,510,000}

^{Prepay. & Def. charges: 6,199,000}

^{Provisions: 1,091,000 1,069,000 559,000}

^{Other Short term Liab.: 139,000 537,000 41,000}

^{Total short term Liab.: 13,932,000 13,480,000 10,309,000}

^{TOTAL LIABILITIES: 13,932,000 13,480,000 10,309,000}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 45,409,000 41,426,000 25,245,000}

^{Gross Profit: 10,837,000 9,026,000 5,951,000}

^{Result of ordinary operations - - 1,701,000}

^{NET RESULT BEFORE TAX: 5,190,000 4,284,000 1,684,000}

^{Tax : 1,151,000 739,000 416,000}

^{Net income/loss year: 4,039,000 3,545,000 1,268,000}

^{Interest Paid: 1,000 1,000 17,000}

^{Depreciation: 26,000 25,000 17,000}

^{Purchases,Sces & Other Goods: 34,572,000 32,400,000 19,294,000}

^{Wages and Salaries: 2,695,000 2,235,000 1,360,000}

^{Financial Income: 248,000 73,000 -}

RATIOS

^{31/12/2005 31/12/2004 31/12/2003}

^{Turnover per employee: 856773.58 781622.64 476320.75}

^{Net result / Turnover(%): 0.09 0.09 0.05}

^{Stock / Turnover(%): 0.11 0.13 0.20}

^{Net Margin(%): 8.89 8.56 5.02}

^{Return on Equity(%): 37.09 51.74 38.35}

^{Return on Assets(%): 16.27 17.44 9.31}

^{Net Working capital: 9169000.00 5113000.00 1579000.00}

^{Cash Ratio: 0.13 0.12 0.08}

^{Quick Ratio: 0.42 0.36 0.19}

^{Current ratio: 1.66 1.38 1.15}

^{Receivables Turnover: 31.98 28.06 16.61}

^{Leverage Ratio: 1.52 2.62 6.41}

^{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 58.95% FROM US$6,851,000 IN FY 2004 TO US$10,890,000 IN FY 2005. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$10,748,000 (2004: US$6,709,000); A RISE OF 60.20% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 91.17% (2004: 88.09%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$12,702,000 (2004: US$11,874,000). THE BREAKDOWN IS AS FOLLOWS:}

^{-TRADE PAYABLES AND ACCRUED OPERATING EXPENSES - 2005: US$9,705,000 (2004: US$8,736,000)}

^{-OTHER RELATED CORPORATIONS - 2005: US$2,997,000 (2004: US$3,138,000)}

^{IN ALL, LEVERAGE RATIO FELL FROM 2.62 TIMES TO 1.52 TIMES AS A RESULT OF A GREATER RISE IN TOTAL EQUITY THAN TOTAL LIABILITIES.}

^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 1.66 TIMES, UP FROM 1.38 TIMES AND QUICK RATIO IMPROVED TO 0.42 TIMES FROM 0.36 TIMES IN FY 2004.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 79.33% FROM US$5,113,000 IN FY 2004 TO US$9,169,000.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 9.61% FROM US$41,426,000 IN FY 2004 TO US$45,409,000 AND NET PROFIT ROSE BY 13.94% TO US$4,039,000 (2004: US$3,545,000). HENCE, NET MARGIN ROSE TO 8.89% (2004: 8.56%).}

^REVENUE:

^{-SALES OF GOODS AND SERVICES - 2005: US$45,188,000 (2004: US$41,136,000)}

^{-COMMISSION INCOME - 2005: US$221,000 (2004: US$290,000)}

^{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 US$1,000 IN FY 2005 (2004: US$1,000). AVERAGE COLLECTION PERIOD HAS INCREASED FROM 28.06 DAYS TO 31.98 DAYS. A HIGHER AVERAGE COLLECTION PERIOD POSES GREATER RISK OF TURNING INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT SERVICING ABILITY MAY NOT BE AFFECTED IF TRADE RECEIVABLES ARE FORTHCOMING.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITIES}

^{AT 31 DECEMBER 2005, PERFORMANCE BONDS WITH A BANK AMOUNTED TO US$1,419,210 (2004: US$5,588,389) TO THEIR CUSTOMERS. THESE BONDS ACT AS SECURITIES FOR THE FULFILLMENT OF THE COMPANY'S CONTRACTUAL OBLIGATIONS TO THEIR CUSTOMERS.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 22/04/1981 AS A LIMITED PRIVATE COMPANY AND WAS TRADING UNDER THE NAMESTYLE OF "BTG BONNIER TECHNOLOGY PTE LTD". ON 10/08/1989, IT CHANGED TO THE NAMESTYLE OF "BTG SEA PTE LTD".}

^{SUBSEQUENTLY ON 06/01/1996, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE OF "SPECTRIS PTE LTD".}

^{AS AT 23/10/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 300,000 SHARES, OF A VALUE OF S$300,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) MANUFACTURE OF INDUSTRIAL PROCESS CONTROL EQUIPMENT}

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE THOSE OF GENERAL IMPORTERS, EXPORTERS, GENERAL MERCHANTS, HIRE-PURCHASE DEALERS, COMMISSION AGENTS, MANUFACTURER'S AGENT AND REPRESENTATIVES, MANUFACTURERS, PROCESSORS AND DISTRIBUTORS OF AND DEALERS IN ARTICLES, PRODUCTS INCLUDING PROCESS CONTROL INSTRUMENTATION AND MERCHANDISE OF ALL KINDS AND DESCRIPTION WHETHER MANUFACTURED AND SEMI-MANUFACTURED, RAW STATE OR AS PREPARED.}

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

^ACTIVITIES

^{* TRADING AND SUPPLIER OF TEST EQUIPMENT FOR PAPER AND WOOD PULP, MEASURING APPARATUS FOR WOOD PULP, ETC.}

^{* SALES OF ANALYTICAL INSTRUMENTATION AND SOFTWARE FOR X-RAY DIFFRACTION AND SOUND, VIBRATION THERMAL ENVIRONMENT, GAS MONITORING AND SIGNAL ANALYSIS}

^{PRODUCTS AND SERVICES}

^{* MACHINE CONDITION MONITORING SYSTEMS AND MAINTENANCE SERVICES}

^{* TRANSDUCERS, SOUND LEVEL METERS AND ANALYSERS FOR SOUND AND VIBRATION MEASUREMENT}

^{* NON-CONTACT, LASER-BASED GAUGING, DIAMETER MEASUREMENT SYSTEMS AND ULTRASONIC TESTING}

^{* ULTRAVIOLET LIGHT PROCESSING TECHNOLOGY FOR CURING PHOTOSENSITIVE INKS, COATINGS, AND ADHESIVES}

^{* DIGITAL MEASUREMENT SYSTEMS, TRANSDUCERS AND LOAD CELLS}

^{* HIGH SPEED INDUSTRIAL BARCODE SCANNING AND DECODING INSTRUMENTS}

^{* OPERATOR INTERFACES, SIGNAL CONDITIONERS, TEMPERATURE CONTROLLERS, COUNTERS, RATE INDICATORS AND PANEL}

^{* ETC.}

^{TRADE NAMES}

^{* BRUEL & KJAER}

^{* SCHENK}

^{* BTG}

^{* FUSION UV SYSTEMS}

^{* HBM}

^{* IRCON}

^{* SPECTRUM INSPECTION SYSTEMS}

^{* SERVOMEX}

^{* ETC}

^{FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{* 2007: 53}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 26/10/2007.}

^{THE IMMEDIATE HOLDING COMPANY IS SPECTRIS ASIA PACIFIC PTE LTD, A COMPANY INCORPORATED IN SINGAPORE. THE INTERMEDIATE AND ULTIMATE HOLDING COMPANY IS FAIREY OVERSEAS DEVELOPEMENTS LTD AND SPECTRIS PLC RESPECTIVELY, BOTH COMPANIES INCORPORATED IN THE UNITED KINGDOM.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: 26; 2003: 27)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{460 ALEXANDRA ROAD}

^{#34-04A PSA BUILDING}

^{SINGAPORE 119963}

^{- RENTED PREMISE}

^{- OWNED BY HELICONIA REALTY PTE LTD}

^{- DATE OF CHANGE OF ADDRESS: 15/12/1999}

^{- HEAD OFFICE}

^{OTHER BUSINESS ADDRESS:}

^{31 KAKI BUKIT ROAD}

^#06-04/05

^TECHLINK

^{SINGAPORE 417818}

^{- RENTED PREMISE}

^{- OWNED BY HSBC INSTITUTIONAL TRUST SVC (S) LTD}

^{- OFFICE}

^WEBSITE:

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

^EMAIL:

^{specsing@pacific.net.sg}

MANAGEMENT

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

^{1) JAMES CHARLES WEBSTER, A BRITISH}

^{- BASED IN THE UNITED KINGDOM.}

^{2) TAN TENG GUAN, A SINGAPOREAN}

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

^{3) DONALD ALBERT RAMBLE, A SINGAPORE PERMANENT RESIDENT}

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

^{SINGAPORE COMPUTER SYSTEMS LIMITED}

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