MIRA INFORM REPORT

Report Date :

12.09.2007

IDENTIFICATION DETAILS

Name :	ROCHE DIAGNOSTICS ASIA PACIFIC PTE LTD
Registered Office :	^298 Tiong Bahru Road, #16-01/06^, Central Plaza, Singapore^- 168730
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^11/07/1998
Legal Form :	^Pte Ltd
Line of Business :	Trading of Diagnostic Instruments and Reagents and Biochemical Research Products

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

ROCHE DIAGNOSTICS ASIA PACIFIC PTE LTD

Line Of Business 

TRADING OF DIAGNOSTIC INSTRUMENTS AND REAGENTS AND BIOCHEMICAL RESEARCH PRODUCTS

Parent Company

ROCHE PHARMHOLDING B.V.

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : S$37,235,511

Networth : S$5,017,627

Paid-Up Capital : S$7,400,000

Net result : S$425,108

Net Margin(%) : 1.14

Return on Equity(%) : 8.47

Leverage Ratio : 5.02

COMPANY IDENTIFICATION

^{Subject Company: ROCHE DIAGNOSTICS ASIA PACIFIC PTE LTD}

^{Former Name: -}

^{Business Address: 298 TIONG BAHRU ROAD}

^#16-01/06

^{CENTRAL PLAZA}

^{Town: SINGAPORE}

^{Postcode: 168730}

^{County: -}

^{Country: Singapore}

^{Telephone: 6272 7500}

^{Fax: 6371 6600}

^{ROC Number: 199803381W}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 11/07/1998}

^{Previous Legal Form: -}

^{Summary year: 31/12/2006}

^{Sales: 37,235,511}

^{Net worth: 5,017,627}

^{Capital: -}

^{Paid-Up Capital: 7,400,000}

^{Employees: Not available}

^{Net result: 425,108}

^{Share value: -}

^{Auditor: KPMG}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 11/07/1998}

PRINCIPAL(S)

^{TAN PUAY HUIM CLEMENT S0194812A Director}

DIRECTOR(S)

^{TAN PUAY HUIM CLEMENT S0194812A Director}

^{Appointed on: 11/07/1998}

^{Street: 9C WOO MON CHEW ROAD}

^{Town: SINGAPORE}

^{Postcode: 455063}

^{Country: Singapore}

^{KOH CHOON HUI S0310105C Director}

^{Appointed on: 29/07/1998}

^{Street: 5 CLIFTON VALE}

^{BRADDELL HEIGHTS ESTATE}

^{Town: SINGAPORE}

^{Postcode: 359672}

^{Country: Singapore}

^{NICOLAAS SIMON DE BOER NG2031742 Director}

^{Appointed on: 18/12/2001}

^{Street: ROERDOMP 33 3641}

^{TG MIJDRECHT THE NETHERLANDS}

^{Town: -}

^{Postcode: -}

^{Country: Netherlands}

^{LIM BEE ENG S1626446F Company Secretary}

^{Appointed on: 06/01/2005}

^{Street: 289 BISHAN STREET 24}

^#16-17

^{Town: SINGAPORE}

^{Postcode: 570289}

^{Country: Singapore}

^{MICHAEL JOACHIM KARL SERVATIUS G5867335N Director}

^{Appointed on: 01/04/2006}

^{Street: 1 JALAN PANDAN}

^{Town: SINGAPORE}

^{Postcode: 288786}

^{Country: Singapore}

^{MICHAEL JOACHIM KARL SERVATIUS G5867335N Managing Director}

^{Appointed on: 01/04/2006}

^{Street: 1 JALAN PANDAN}

^{Town: SINGAPORE}

^{Postcode: 288786}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{SUM FEI YUAN PAULINE S1347952F}

^{JOSE OSCAR JOSEPH VANHOLLEBEKE 0900033851}

^{PETER BIERI 6131697}

^{FRANZ THOMAS WALT F5618212T}

^{LEE LU TSENG GERARD S1534387G}

^{SCHWAN SEVERIN ANTON G5760288R}

ACTIVITY(IES)

^{PHARMACEUTICAL PRODUCTS - WHSLE And MFRS Code:16400}

^{SURGICAL APPLIANCES Code:20590}

^{DRUG STORES Code:7040}

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD AS AT 10/09/2007}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); IMPORTERS, EXPORTERS & DEALERS IN DIAGNOSTICS PRODUCTS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

No Banker Information In Our Database

SHAREHOLDERS(S)

^{ROCHE PHARMHOLDING B.V. 7,400,000 Company}

^{Street: BENELUXLAAN 2A}

^{NL-3446 GR WOERDEN}

^{Town: -}

^{Postcode: -}

^{Country: Netherlands}

FORMER SHAREHOLDER(S)

^{TAN PUAY HUIM CLEMENT 1}

^{DIETER DOERING 1}

^{NETHERLANDS PHARMHOLDINGS B V 3,399,998}

HOLDING COMPANY

^{ROCHE PHARMHOLDING B.V. UF25750D %: 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: LACKING}

^{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) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 13/06/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005 31/12/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 6,541,727 3,641,125 3,797,977}

^{Investments 173,534 173,534 173,534}

^{Total Fixed Assets: 6,715,261 3,814,659 3,971,511}

^{Inventories: 4,194,331 2,503,641 2,865,604}

^{Receivables: 10,182,492 13,865,729 13,803,880}

^{Cash,Banks,Securities: 1,296,747 1,623,053 3,622,174}

^{Other current assets: 7,805,738 7,693,431 712,006}

^{Total Current Assets: 23,479,308 25,685,854 21,003,664}

^{TOTAL ASSETS: 30,194,569 29,500,513 24,975,175}

^{--- LIABILITIES}

^{Equity capital: 7,400,000 7,400,000 7,400,000}

^{Profit & loss Account: -2,382,373 -2,807,481 -3,636,440}

^{Total Equity: 5,017,627 4,592,519 3,763,560}

^{L/T deferred taxes: 416,354 240,000 316,000}

^{Total L/T Liabilities: 416,354 240,000 316,000}

^{Trade Creditors: 9,270,049 5,862,738 5,242,479}

^{Prepay. & Def. charges: 3,759,212 3,663,446 2,830,425}

^{Due to Bank: - - 74,287}

^{Provisions: 333,522 273,519 504,998}

^{Other Short term Liab.: 11,397,805 14,868,291 12,243,426}

^{Total short term Liab.: 24,760,588 24,667,994 20,895,615}

^{TOTAL LIABILITIES: 25,176,942 24,907,994 21,211,615}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 37,235,511 31,547,735 35,962,489}

^{Purchases,Sces & Other Goods: 26,344,714 21,179,803 21,172,407}

^{Gross Profit: 10,890,797 10,367,932 14,790,082}

^{Result of ordinary operations 1,004,400 1,178,332 -4,773,472}

^{NET RESULT BEFORE TAX: 695,667 969,625 -5,201,233}

^{Tax: 270,559 140,666 405,626}

^{Net income/loss year: 425,108 828,959 -5,606,859}

^{Interest Paid: 308,733 208,707 427,761}

^{Depreciation: 1,721,333 1,227,203 1,195,110}

^{Directors Emoluments: 725,914 1,122,774 -}

^{Wages and Salaries: 10,813,691 9,646,618 10,158,717}

RATIOS

^{31/12/2006 31/12/2005 31/12/2004}

^{Net result / Turnover(%): 0.01 0.03 -0.16}

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

^{Stock / Turnover(%): 0.11 0.08 0.08}

^{Net Margin(%): 1.14 2.63 -15.59}

^{Return on Equity(%): 8.47 18.05 -148.98}

^{Return on Assets(%): 1.41 2.81 -22.45}

^{Net Working capital: -1281280.00 1017860.00 108049.00}

^{Cash Ratio: 0.05 0.07 0.17}

^{Quick Ratio: 0.46 0.63 0.83}

^{Current ratio: 0.95 1.04 1.01}

^{Receivables Turnover: 98.45 158.23 138.18}

^{Leverage Ratio: 5.02 5.42 5.64}

^{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 LIMITED TO FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 9.26% FROM S$4,592,519 IN 2005 TO S$5,017,627 IN 2006.}

^{THIS WAS DUE TO LOWER ACCUMULATED LOSSES OF S$2,382,373}

^{(2005: ACCUMULATED LOSSES OF S$2,807,481); A FALL OF 15.14% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER SHORT TERM LIABILITIES WHICH MADE UP 46.08% (2005: 60.27%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$11,397,805 (2005: S$14,868,291). THE BREAKDOWN IS AS FOLLOWS:}

^{-INTEREST BEARING - 2006: S$9,656,922 (2005: S$13,134,902)}

^{-NON INTEREST BEARING - 2006: S$970,086 (2005: S$675,439)}

^{-OTHER CREDITORS - 2006: S$770,797 (2005: S$1,057,950)}

^{TRADE CREDITORS ROSE BY 58.12% TO S$9,270,049 (2005: S$5,862,738), AND CONSIST OF THE FOLLOWING:}

^{-TRADE PAYABLES - 2006: S$704,788 (2005: S$1,016,099)}

^{-RELATED CORPORATIONS - 2006: S$8,565,261 (2005: S$4,846,639)}

^{SUBJECT'S LONG TERM LIABILITY, WHICH CONSIST OF DEFERRED TAX LIABILITY, ROSE BY 73.48% TO S$416,354 (2005: S$240,000).}

^{IN ALL, LEVERAGE RATIO FELL FROM 5.42 TIMES TO 5.02 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 INADEQUATE AS SEEN FROM THE FALL IN NET WORKING CAPITAL INTO NEGATIVE REGION OF S$1,281,280, AS COMPARED TO THE POSITIVE NET WORKING CAPITAL OF S$1,017,860.}

^{CURRENT RATIO FELL TO 0.95 TIMES, DOWN FROM 1.04 TIMES AND QUICK RATIO DECREASED TO 0.46 TIMES FROM 0.63 TIMES IN 2005.}

^{THESE COULD INDICATE THAT SUBJECT MAY FACE DIFFICULTIES IN FULFILLING ITS FUTURE OBLIGATIONS.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 18.03% FROM S$31,547,735 IN 2005 TO S$37,235,511 BUT NET PROFIT DROPPED BY 48.72% TO S$425,108 (2005: S$828,959).}

^{THIS COULD BE DUE TO LOWER GROSS MARGIN OF 29.25% IN 2006 (2005: 32.86%).}

^{HENCE, NET MARGIN FELL TO 1.14% (2005: 2.63%).}

^{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 3.25 TIMES}

^{(2005: 5.65 TIMES).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 11/07/1998 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "ROCHE DIAGNOSTICS ASIA PACIFIC PTE LTD".}

^{AS AT 10/09/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 7,400,000 SHARES OF A VALUE OF S$7,400,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); IMPORTERS, EXPORTERS & DEALERS IN DIAGNOSTICS PRODUCTS}

^{2) OTHER SUPPORT ACTIVITIES; TO SERVICE, SUPERVISE & ASSIST THE COMPANY'S CUSTOMERS}

^{& ASSOCIATE COMPANIES}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE RELATING TO TRADING OF DIAGNOSTIC INSTRUMENTS AND REAGENTS AND BIOCHEMICAL RESEARCH PRODUCTS.}

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

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* REGIONAL SALES OFFICE OF DIAGNOSTICS SYSTEMS FOR ASIA PACIFIC AND LOCAL OPERATIONS}

^{* SUPPLIES A WIDE ARRAY OF INNOVATIVE TESTING PRODUCTS AND SERVICES TO RESEARCHERS,}

^{PHYSICIANS, PATIENTS, HOSPITALS AND LABORATORIES WORLDWIDE}

^{SUBJECT IS ALSO A MEMBER OF FOLLOWING ENTITIES:}

^{* SWISS BUSINESS ASSOCIATION (SBA)}

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE (SICC)}

^{NO OTHER TRADE INFOMRATION WAS MADE AVAILABLE AT THE TIME OF THIS REPORT.}

^{THE IMMEDIATE HOLDING COMPANY DURING THE FINANCIAL YEAR IS ROCHE PHARMHOLDING B.V., A COMPANY INCORPORATED IN NETHELRANDS. THE ULTIMATE HOLDING COMPANY DURING THE FINANCIAL YEAR IS ROCHE HOLDING LTD, A COMPANY INCORPORATED IN SWITZERLAND.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: 74; 2004: 75; 2003: 78; 2002: 59)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{298 TIONG BAHRU ROAD}

^#16-01/06

^{TIONG BAHRU PLAZA}

^{SINGAPORE 168730}

^{DATE OF CHANGE OF ADDRESS : 02/05/2000}

^{-- REGIONAL HEADQUARTERS}

^{-- RENTED PREMISE}

^{-- OWNED BY: ARMF (CENTRAL PLAZA) PTE. LTD.}

^WEBSITE:

^{* http://www.roche.com}

^{* http://sg.roche-diagnostics.com/RocheDiagnostics_singapore.htm}

^{(DIRECT LINK TO SINGAPORE'S URL)}

^EMAIL:

^{* singapore.diag@roche.com}

MANAGEMENT

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

^{1) MICHAEL JOACHIM KARL SERVATIUS TILLMANN, A GERMAN}

^{- BASED IN SINGAPORE}

^{2) NICOLAAS SIMON DE BOER, A DUTCH}

^{- BASED IN THE NETHERLANDS}

^{3) TAN PUAY HUIM CLEMENT, A SINGAPOREAN}

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

^{BOEHRINGER MANNHEIM FE PTE LTD}

^{4) KOH CHOON HUI, A SINGAPOREAN}

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

^{ROCHE SINGAPORE PTE. LTD.}

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