MIRA INFORM REPORT

Report Date :

30.08.2007

IDENTIFICATION DETAILS

Name :	AAVANTI INDUSTRIES PTE LTD
Registered Office :	^16 Raffles Quay, #39-03, Hong Leong Building, Singapore – 048581
Country :	Singapore
Financials (as on) :	30.06.2006
Date of Incorporation :	^21/07/1993
Com. Reg. No.:	^199304717K
Legal Form :	^Pte Ltd
Line of Business :	Offshore Trade in Agro Products and Edible and Non-Edible Oils

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 :	Exists

Subject Company

AAVANTI INDUSTRIES PTE LTD

Line Of Business 

OFFSHORE TRADE IN AGRO PRODUCTS AND EDIBLE AND NON-EDIBLE OILS

Parent Company

MERDALE INVESTMENT COMPANY LIMITED

(PERCENTAGE OF SHAREHOLDING: 99.99%)

Financial Elements

FY 2006

COMPANY

Sales : USD552,077,831

Networth : USD6,134,874

Paid-Up Capital : USD3,779,070

Net result : USD308,635

Net Margin(%) : 0.06

Return on Equity(%) : 5.03

Leverage Ratio : 18.77

COMPANY IDENTIFICATION

^{Subject Company: AAVANTI INDUSTRIES PTE LTD}

^{Former Name: -}

^{Business Address: 16 RAFFLES QUAY}

^#39-03

^{HONG LEONG BUILDING}

^{Town: SINGAPORE}

^{Postcode: 048581}

^{County: -}

^{Country: Singapore}

^{Telephone: 6538 8233 / 6438 6821}

^{Fax: 6538 2183 / 6536 7891}

^{ROC Number: 199304717K}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 21/07/1993}

^{Previous Legal Form: -}

^{Summary year: 30/06/2006}

^{Sales: 552,077,831}

^{Net worth: 6,134,874}

^{Capital: -}

^{Paid-Up Capital: 3,779,070}

^{Employees: Not available}

^{Net result: 308,635}

^{Share value: -}

^{Auditor: LEONG KIN WENG & CO}

REFERENCES

^{Litigation: Yes}

^{Company status: TRADING}

^{Started: 21/07/1993}

PRINCIPAL(S)

^{EASAW THOMAS S1206857C Director}

DIRECTOR(S)

^{CHEO MENG CHOO S0238160E Company Secretary}

^{Appointed on: 21/07/1993}

^{Street: 36 TAMAN SELAMAT}

^{KIMNAN PARK}

^{Town: SINGAPORE}

^{Postcode: 416432}

^{Country: Singapore}

^{EASAW THOMAS S1206857C Director}

^{Appointed on: 15/02/1998}

^{Street: 2 WILBY ROAD}

^{Town: SINGAPORE}

^{Postcode: 276291}

^{Country: Singapore}

^{ANJULA THOMAS NEE KHANDELWAL S2183449A Director}

^{Appointed on: 21/07/1993}

^{Street: 2 WILBY ROAD}

^{Town: SINGAPORE}

^{Postcode: 276291}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{ASOK CHATTERJEE S2662536Z}

ACTIVITY(IES)

^{OILS - WHSLE Code:15515}

^{COMMODITY TRADERS Code:5010}

^{AGRICULTURAL MARKETING Code:370}

^{BASED ON ACRA'S RECORD AS AT 27/08/2007}

^{1) OTHER INVESTMENT HOLDING COMPANIES}

CHARGES

^{Date: 29/06/2006}

^{Comments: CHARGE NO: C200604202, 4204, 4205}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: SOCIETE GENERALE}

^{Date: 25/07/2006}

^{Comments: CHARGE NO: C200604839}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: ABN AMRO BANK N.V.}

^{Date: 30/08/2006}

^{Comments: CHARGE NO: C200605825}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: MALAYAN BANKING BHD}

^{Date: 02/04/2007}

^{Comments: CHARGE NO: C200702493, 2495, 2496}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: SOCIETE GENERALE}

^{Date: 18/10/2005}

^{Comments: CHARGE NO: C200506470, C200506471}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: KBC BANK N.V.}

^{Date: 10/11/2005}

^{Comments: CHARGE NO: C200506980}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED}

^{Date: 26/07/1995}

^{Comments: CHARGE NO: 9504610}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: SOCIETE GENERALE}

^{Date: 03/10/2001}

^{Comments: CHARGE NO: 200104805}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: SOCIETE GENERALE}

^{Date: 02/11/1999}

^{Comments: CHARGE NO: 199904794, 199904795}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: BANQUE NATIONALE DE PARIS}

^{Date: 16/11/1999}

^{Comments: CHARGE NO: 199905019}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: BANQUE NATIONALE DE PARIS}

^{Date: 11/10/2000}

^{Comments: CHARGE NO: 200005144}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: ABN AMRO BANK N.V.}

^{Date: 09/11/2000}

^{Comments: CHARGE NO: 200005404}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: BANK BRUSSELS LAMBERT}

^{Date: 16/11/2000}

^{Comments: CHARGE NO: 200005546 (DISCHARGED)}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: THE SUMITOMO BANK LIMITED}

^{Date: 21/11/2000}

^{Comments: CHARGE NO: 200005623}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: THE DEVELOPMENT BANK OF SINGAPORE LTD}

^{Date: 15/08/2001}

^{Comments: CHARGE NO: 200103898}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: KBC BANK N.V.}

^{Date: 16/04/2003}

^{Comments: CHARGE NO: C200301712, C200301710}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: SUMITOMO MITSUI BANKING CORPORATION SINGAPORE BRANCH}

^{Date: 24/12/2002}

^{Comments: CHARGE NO: 200205650}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: SOCIETE GENERALE}

^{Date: 13/08/2002}

^{Comments: CHARGE NO: 200203533 (DISCHARGED)}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: NEDCOR BANK LTD, SINGAPORE BRANCH}

^{Date: 07/01/2004}

^{Comments: CHARGE NO: C200400106}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: OVERSEA-CHINESE BANKING CORPORATION LTD}

^{Date: 19/11/2003}

^{Comments: CHARGE NO: C20035583}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGGE: STANDARD CHARTERED BANK}

^{Date: 23/05/2003}

^{Comments: CHARGE NO: C200302358}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: STANDARD CHARTERED BANK}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{SOCIETE GENERALE}

^{BANQUE NATIONALE DE PARIS}

^{ABN AMRO BANK NV}

^{DBS BANK LTD.}

^{BANK BRUSSELS LAMBERT}

^{K.B.C. BANK N.V.}

^{SUMITOMO MITSUI BANKING CORPORATION}

^{NEDCOR BANK LIMITED, SPORE BRANCH}

^{STANDARD CHARTERED BANK}

^{OVERSEA-CHINESE BANKING CORPORATION LIMITED}

SHAREHOLDERS(S)

^{MERDALE INVESTMENT COMPANY LIMITED 6,499,998 Company}

^{Street: ST JAMES HOUSE NEW ST JAMES PLACE}

^{ST HELIER JERSEY JE 4 8WB}

^{CHANNEL ISLANDS}

^{Town: CHANNEL ISLANDS}

^Postcode:

^{Country: United Kingdom}

^{EASAW THOMAS 1 Private Person}

^{Street: 2 WILBY ROAD}

^{Town: SINGAPORE}

^{Postcode: 276291}

^{Country: Singapore}

^{ANJULA THOMAS NEE KHANDELWAL 1 Private Person}

^{Street: 2 WILBY ROAD}

^{Town: SINGAPORE}

^{Postcode: 276291}

^{Country: Singapore}

HOLDING COMPANY

^{MERDALE INVESTMENT COMPANY LIMITED UF10896N %: 99.99}

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)

^{Type Of Case: High Court - W/S}

^{Case Number: HWS00223/2004}

Defendant AAVANTI INDUSTRIES PTE LTD ROC #: 199304717K

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS00795/2003}

Defendant AAVANTI INDUSTRIES PTE LTD ROC #: 199304717K

^{Type Of Case: High Court - W/S}

^{Case Number: HWS00714/1997}

Defendant AAVANTI INDUSTRIES PTE LTD ROC #: 199304717K

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS11555/1995}

Defendant AAVANTI INDUSTRIES PTE LTD ROC #: 199304717K

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 23/01/2007}

^{Balance Sheet Date: 30/06/2006 30/06/2005 30/06/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 58,383 83,568 16,174}

^{Total Fixed Assets: 58,383 83,568 16,174}

^{Receivables: 113,090,566 53,420,702 51,755,116}

^{Cash,Banks,Securities: 5,546,657 8,289,237 7,709,551}

^{Other current assets: 2,601,265 2,725,221 3,648,614}

^{Total Current Assets: 121,238,488 64,435,160 63,113,281}

^{TOTAL ASSETS: 121,296,871 64,518,728 63,129,455}

^{--- LIABILITIES}

^{Equity capital: 3,779,070 3,779,070 3,779,070}

^{Profit & loss Account: 2,355,804 2,047,169 1,773,136}

^{Total Equity: 6,134,874 5,826,239 5,552,206}

^{Trade Creditors: 42,682,767 32,751,805 26,355,296}

^{Prepay. & Def. charges: 37,731 32,163 25,091}

^{Due to Bank: 72,374,098 25,811,717 31,101,116}

^{Provisions: 67,401 67,193 93,432}

^{Other Short term Liab.: - 29,611 2,314}

^{Total short term Liab.: 115,161,997 58,692,489 57,577,249}

^{TOTAL LIABILITIES: 115,161,997 58,692,489 57,577,249}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 552,077,831 503,558,015 607,637,476}

^{Purchases,Sces & Other Goods: 541,043,293 496,175,286 -}

^{Gross Profit: 11,034,538 7,382,729 5,037,055}

^{Result of ordinary operations 10,445,029 6,383,976 4,030,469}

^{NET RESULT BEFORE TAX: 376,036 334,452 332,302}

^{Tax: 67,401 60,419 59,421}

^{Net income/loss year: 308,635 274,033 272,881}

^{Interest Paid: 9,632,441 5,476,871 2,766,936}

^{Depreciation: 20,520 24,089 9,059}

^{Directors Emoluments: 3,125 2,941 2,941}

^{Wages and Salaries: 348,180 335,372 287,042}

RATIOS

^{30/06/2006 30/06/2005 30/06/2004}

^{Fin. Charges / Turnover(%): 0.02 0.01 0.00}

^{Net Margin(%): 0.06 0.05 0.04}

^{Return on Equity(%): 5.03 4.70 4.91}

^{Return on Assets(%): 0.25 0.42 0.43}

^{Net Working capital: 6076491.00 5742671.00 5536032.00}

^{Cash Ratio: 0.05 0.14 0.13}

^{Quick Ratio: 1.03 1.05 1.03}

^{Current ratio: 1.05 1.10 1.10}

^{Receivables Turnover: 73.74 38.19 30.66}

^{Leverage Ratio: 18.77 10.07 10.37}

^{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}

^{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 5.30% FROM USD5,826,239 IN 2005 TO USD6,134,874 IN 2006.}

^{THIS WAS DUE TO HIGHER RETAINED PROFIT OF USD2,355,804 (2005: USD2,047,169); A RISE OF 15.08% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM IN 2006, SUBJECT WAS LARGELY FINANCED BY AMOUNTS DUE TO BANKS WHICH MADE UP 62.85% (2005: 43.98%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO USD72,374,098 (2005: USD25,811,717). THE BREAKDOWN IS AS FOLLOWS:}

^{-BILLS PAYABLE - 2006: USD47,374,098 (2005: USD25,811,717)}

^{-SHORT TERM BANK LOAN - 2006: USD25,000,000 (2005: - )}

^{HOWEVER, IN THE SHORT-TERM IN 2005, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 55.80% (2006: 37.06%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO USD32,751,805 (2006: USD42,682,767).}

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

^{IN ALL, LEVERAGE RATIO ROSE FROM 10.07 TIMES TO 18.77 TIMES AS A RESULT OF A MORE THAN PROPORTIONATE RISE IN TOTAL LIABILITIES AS COMPARED TO THE RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 5.81% TO USD6,076,491 (2005: USD5,742,671).}

^{HOWEVER, CURRENT RATIO FELL TO 1.05 TIMES, DOWN FROM 1.10 TIMES AND QUICK RATIO DECREASED TO 1.03 TIMES FROM 1.05 TIMES IN 2005.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 9.64% FROM USD503,558,015 IN 2005 TO S$552,077,831 AND NET PROFIT ROSE BY 12.63% TO USD308,635 (2005: USD274,033).}

^{HENCE, NET MARGIN ROSE TO 0.06% (2005: 0.05%).}

^{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 AS SHOWN BY ITS INTEREST COVERAGE RATIO OF 2.08 TIMES}

^{(2005: 2.17 TIMES).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITIES}

^{LETTERS OF CREDIT - 2006: S$1,664,640 (2005: S$4,473,525)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 21/07/1993 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER THE PRESENT NAMESTYLE OF "AAVANTI INDUSTRIES PTE LTD".}

^{AS AT 27/08/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 6,500,000 SHARES, OF A VALUE OF S$6,500,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) OTHER INVESTMENT HOLDING COMPANIES}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSISTS OF THE OFFSHORE TRADE IN AGRO PRODUCTS AND EDIBLE AND NON-EDIBLE OILS.}

^{FROM THE RESEARCH DONE, SUBJECT IS A TRADER IN EDIBLE OIL, AGRICULTURAL PRODUCTS AND STEEL.}

^{TYPE OF PRODUCTS TRADED}

^{- STEELS, EDIBLE & NON EDIBLE OILS AND PULSE}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES}

^{- SINGAPORE INDIAN CHAMBER OF COMMERCE AND INDUSTRY}

^{- SINGAPORE BUSINESS FEDERATION}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 29/08/2007.}

^{THE COMPANY IS A SUBSIDIARY OF MERDALE INVESTMENT COMPANY LIMITED, A COMPANY INCORPORATED IN JERSEY CHANNEL ISLANDS (U.K).}

^{NUMBER OF EMPLOYEES (30 JUNE):}

^{- COMPANY - 2006: N0T AVAILABLE (2005: 12; 2004: 12; 2003: 10; 2002: 10)}

^{REGISTERED ADDRESS:}

^{809 FRENCH ROAD}

^#06-152

^{KITCHENER COMPLEX}

^{SINGAPORE 200809}

^{DATE OF CHANGE OF ADDRESS: -}

^{BUSINESS ADDRESS:}

^{16 RAFFLES QUAY}

^#39-03

^{HONG LEONG BUILDING}

^{SINGAPORE 048581}

^WEBSITE:

^NIL

^EMAIL:

^{ajay@aavanti.com (MR. AJAY KHANDELWALL)}

^{aavanti@singnet.com.sg}

MANAGEMENT

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

^{1) EASAW THOMAS, A SINGAPOREAN}

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

^{2) ANJULA THOMAS NEE KHANDELWAL, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIPS 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