MIRA INFORM REPORT

Report Date :

17.09.2007

IDENTIFICATION DETAILS

Name :	JUKI SINGAPORE PTE LTD
Registered Office :	^20 Bendemeer Road, #04^-^12, Cyberhub, Singapore – 339914
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^17/03/1995
Com. Reg. No.:	^199501853K
Legal Form :	^Pte Ltd
Line of Business :	Import and Export of Juki Brand Industrial Sewing Machines, related Equipment and Accessories

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

JUKI SINGAPORE PTE LTD

Line Of Business 

IMPORT AND EXPORT OF JUKI BRAND INDUSTRIAL SEWING MACHINES, RELATED EQUIPMENT AND ACCESSORIES

Parent Company

JUKI CORPORATION

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

COMPANY

Sales : US$181,086,219

Networth : US$10,763,660

Paid-Up Capital : US$8,079,780

Net result : US$15,127

Net Margin(%) : 0.01

Return on Equity(%) : 0.14

Leverage Ratio : 7.24

COMPANY IDENTIFICATION

^{Subject Company : JUKI SINGAPORE PTE LTD}

^{Former Name : -}

^{Business Address: 20 BENDEMEER ROAD}

^#04-12

^CYBERHUB

^{Town: SINGAPORE}

^{Postcode: 339914}

^{County: -}

^{Country: Singapore}

^{Telephone: 6553 4388}

^{Fax: 6552 5568}

^{ROC Number: 199501853K}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 17/03/1995}

^{Previous Legal Form: -}

^{Summary year : 31/12/2006}

^{Sales: 181,086,219}

^{Networth : 10,763,660}

^{Capital: -}

^{Paid-Up Capital: 8,079,780}

^{Employees: 190}

^{Net result : 15,127}

^{Share value: -}

^{AUDITOR: DELOITTE & TOUCHE}

^{BASED ON ACRA'S AS AT 07/09/2007}

^{NO. OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 13,000,000 SGD 13,000,000}

^{PAID UP ORDINARY - SGD 13,000,000}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 17/03/1995}

PRINCIPAL(S)

^{SUSUMU MATSUDA G5747744Q Managing Director}

DIRECTOR(S)

^{LOOI KAM HONG @ LOOI AHA HONG S2530975H Director}

^{Appointed on : 02/12/1996}

^{Street : 137 SUNSET WAY}

^#08-14

^{CLEMENTI PARK}

^{Town: SINGAPORE}

^{Postcode: 597159}

^{Country: Singapore}

^{TSUTOMU YOSHIDA TG3546252 Director}

^{Appointed on : 01/01/2006}

^{Street : 26A GRAND GATEWAY GARDEN}

^{2118B HUASHAN ROAD}

^{Town: SHANGHAI}

^Postcode:

^{Country: China}

^{SUSUMU MATSUDA G5747744Q Director}

^{Appointed on : 28/04/2004}

^{Street : 22 NEWTON ROAD}

^#27-09

^{AMARYLLIS VILLE}

^{Town: SINGAPORE}

^{Postcode: 307990}

^{Country: Singapore}

^{SUSUMU MATSUDA G5747744Q Managing Director}

^{Appointed on : 28/04/2004}

^{Street : 22 NEWTON ROAD}

^#27-09

^{AMARYLLIS VILLE}

^{Town: SINGAPORE}

^{Postcode: 307990}

^{Country: Singapore}

^{LEE SIEW JEE JENNIFER S1336064B Company Secretary}

^{Appointed on : 30/08/2007}

^{Street : 2 ENG KONG ROAD}

^{Town: SINGAPORE}

^{Postcode: 599081}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{HELEN CAMPOS THOMAS S1318008C}

^{INOUE NORIHIKO F2316427L}

^{INAGAKI SABURO MN6584087}

^{YAMAOKA TAKEO MN8403676}

^{SUGIHARA YASUO MN9018508}

^{JULIANA LOH JOO HUI S2558149J}

^{MASAHIRO ISHIZAKA MQ3956873}

^{KAZUYUKI NAKAMURA TF0148049}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD AS AT 07/09/2007}

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

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

ASSOCIATED COMPANY(IES)

^{JUKI BANGLADESH LTD}

^Bangladesh

SHAREHOLDERS(S)

^{JUKI CORPORATION 13,000,000 Company}

^{Street : 8-2-1 KOKURYO CHO}

^{CHOUFU SHI}

^{Town: TOKYO}

^{Postcode: 182}

^{Country: Japan}

FORMER SHAREHOLDER(S)

^{WAN TIEW LENG LYNN 1}

^{NG NGAI 1}

HOLDING COMPANY

^{JUKI CORPORATION UF16163Z % : 100}

SUBSIDIARY(IES)

^{JUKI LANKA SERVICE CENTRE (PRIVATE) LIMITED}

^{Sri Lanka}

^{JUKI MACHINERY (INDIA) PVT LTD}

India

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : LEVEL

Financial Situation: AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 30/08/2007}

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

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 74,083 104,083 42,583}

^{Tangible Fixed Assets: 317,350 319,359 471,463}

^{Investments 223,906 243,743 243,743}

^{Total Fixed Assets: 615,339 667,185 757,789}

^{Inventories: 44,412,942 33,049,766 27,784,529}

^{Receivables: 41,059,988 30,508,894 27,427,186}

^{Cash,Banks, Securitis: 1,688,149 7,673,454 7,158,756}

^{Other current assets: 934,764 638,649 1,136,746}

^{Total Current Assets: 88,095,843 71,870,763 63,507,217}

^{TOTAL ASSETS: 88,711,182 72,537,948 64,265,006}

^{--- LIABILITIES}

^{Equity capital: 8,079,780 8,079,780 8,079,780 Profit & loss Account: 2,683,880 2,668,753 2,644,220}

^{TOTAL EQUITY: 10,763,660 10,748,533 10,724,000}

^{L/T deffered taxes: - - 45,800}

^{Other long term Liab.: - 27,561 60,842}

^{Total L/T Liabilities: - 27,561 106,642}

^{Trade Creditors: 73,863,600 58,373,710 45,267,173}

^{Short term liabilities: 30,154 32,232 34,241}

^{Due to Bank: 3,000,000 2,000,000 8,132,950}

^{Other Short term Liab.: 1,053,768 1,355,912}

^{Total short term Liab.: 77,947,522 61,761,854 53,434,364}

^{TOTAL LIABILITIES: 77,947,522 61,789,415 53,541,006}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 181,086,219 149,162,415 133,484,792}

^{Result of ordinary operations - - 603,481}

^{NET RESULT BEFORE TAX: 73,127 152,576 74,537}

^{Tax : 58,000 128,043 -297,002}

^{Net income/loss year: 15,127 24,533 371,539}

^{Interest Paid: 496,515 594,578 707,368}

^{Depreciation: 217,333 228,403 225,983}

^{Directors Emoluments: 265,537 222,215 229,453}

^{Wages and Salaries: 4,222,620 3,263,420 3,322,697}

^{Financial Income: 449,418 274,106 132,048}

RATIOS

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

^{Turnover per employee: 953085.36 785065.34 702551.54}

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

^{Stock / Turnover(%): 0.25 0.22 0.21}

^{Net Margin(%): 0.01 0.02 0.28}

^{Return on Equity(%): 0.14 0.23 3.46}

^{Return on Assets(%): 0.02 0.03 0.58}

^{Net Working capital: 10148321.00 10108909.00 10072853.00}

^{Cash Ratio: 0.02 0.12 0.13}

^{Quick Ratio: 0.55 0.62 0.65}

^{Current ratio: 1.13 1.16 1.19}

^{Receivables Turnover: 81.63 73.63 73.97}

^{Leverage Ratio: 7.24 5.75 4.99}

^{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 MARGINALLY BY 0.14% FROM US$10,748,533 IN FY 2005 TO US$10,763,660 IN FY 2005. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$2,683,880 (2005: US$2,668,753); A RISE OF 0.57% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 94.76% (2005: 94.51%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$73,863,600 (2005: US$58,373,710). THE BREAKDOWN IS AS FOLLOWS:}

^{-TRADE PAYABLES TO THIRD PARTIES - 2006: US$4,329,162 (2005: US$3,956,612)}

^{-HOLDING COMPANY - 2006: US$68,563,149 (2005: US$52,767,017)}

^{-SUBSIDIARIES - 2006: US$101,488 (2005: US$55,771)}

^{-RELATED COMPANIES - 2006: US$869,801 (2005: US$1,235,652)}

^{-DISCOUNTED BILLS WITH RECOURSE - 2006: - (2005: US$358,658)}

^{AMOUNT DUE TO BANKS OF US$3,000,000 (2005: US$2,000,000) CONSISTED OF:}

^{-SHORT-TERM BANK LOANS - 2006: US$$3,000,000 (2005: US$2,000,000)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 5.75 TIMES TO 7.24 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.13 TIMES, DOWN FROM 1.16 TIMES AND QUICK RATIO FELL TO 0.55 TIMES FROM 0.62 TIMES IN FY 2005.}

^{NET WORKING CAPITAL IMPROVED MARGINALLY BY 0.39% FROM US$10,108,909 IN FY 2005 TO US$10,148,321.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-CASH AT BANK - 2006: US$397,860 (2005: US$508,075)}

^{-FIXED DEPOSITS - 2006: US$1,215,000 (2005: US$7,016,200)}

^{-CASH ON HAND - 2006: US$75,289 (2005: US$149,179)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 21.40% FROM US$149,162,415 IN FY 2004 TO US$181,086,219 BUT NET PROFIT DROPPED BY 38.34% TO US$15,127 (2005: US$24,533). THIS COULD BE DUE TO HIGHER OTHER OPERATING EXPENSES OF US$5,093,735 IN FY 2006 (2005: US$4,178,358). HENCE, NET MARGIN FELL TO 0.01% (2005: 0.02%).}

^REVENUE:

^{-SALE OF GOODS - 2006: US$180,800,681 (2005: US$148,974,789)}

^{-RENDERING OF SERVICES - 2006: US$133,943 (2005: US$130,057)}

^{-COMMISSION INCOME - 2006: US$151,595 (2005: US$57,569)}

^{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:}

^{-CLUB MEMBERSHIP - 2006: US$42,583 (2005: US$42,583)}

^{-DEFERRED TAX ASSETS - 2006: US$31,500 (2005: US$61,500)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{SHORT-TERM BANK LOANS}

^{THE LOANS ARE DENOMINATED IN UNITED STATES DOLLARS AND RENEWABLE ON A MONTHLY BASIS. INTEREST RATES VARY FROM 6.07% TO 6.11% (2005: 4.04% TO 5.93%) PER ANNUM. THE LOANS ARE GUARANTEED BY THE HOLDING COMPANY.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 17/03/1995 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "JUKI SINGAPORE PTE LTD".}

^{AS AT 07/09/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 13,000,000 SHARES OF A VALUE OF S$13,000,000.}

^{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 AND EXPORTERS)}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF THE TRADING OF INDUSTRIAL SEWING MACHINES AND THEIR RELATED SPARE PARTS.}

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

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* IMPORT AND EXPORT OF JUKI BRAND INDUSTRIAL SEWING MACHINES, RELATED EQUIPMENT AND ACCESSORIES}

^{PRODUCTS DEALINGS:}

^{GENERAL MACHINES CATEGORY}

^{* 1-2 NEEDLE, LOCKSTITCH MACHINE}

^{* OVERLOCK/SAFETY STITCH MACHINE}

^{* ZIGZAG STITCHING MACHINE}

^{* COVERING STITCH MACHINE}

^{* DOUBLE CHAINSTITCH MACHINE}

^{* SPECIAL PURPOSE MACHINE}

^{AUTOMATIC MACHINE CATEGORY}

^{* BUTTON SEWING MACHINE}

^{* BARTACKING/SHAPE-TACKING MACHINE}

^{* EYELET BUTTONHOLING MACHINE}

^{* COMPUTER-CONTROLLED, CYCLE MACHINE}

^{* AUTOMATIC BUTTON SEWING INDEXER}

^{* AUTOMATIC MACHINE}

^{LHD MACHINE CATEGORY}

^{* FLAT-BED SEWING MACHINE}

^{* LONG ARM SEWING MACHINE}

^{* CYLINDER-BED SEWING MACHINE}

^{* POST-BED SEWING MACHINE}

^{* EXTRA HEAVY-WEIGHT MATERIAL MACHINE}

^SERVICES:

^{ENGINEERING SUPPORT}

^{* PROVIDE TRAINING AND TECHNICAL CONSULTANCY TO FACTORY MANAGERS AND SUPERVISORS}

^{SUPPORT IN ATTACHMENT}

^{* SUPPLY SPECIALIZED ASSISTANCE IN TRAINING AND CONSULTANCY IN THE AREA OF ATTACHMENT}

^{MAINTENANCE SUPPORT}

^{* PROVIDE CUSTOMERS WITH MACHINE KNOWLEDGE, MACHINE INSTALLATION AND MAINTENANCE SERVICES}

^{* AFTER SALES SUPPORT}

^{* SALES & MARKETING SECTION ARE WELL-TRAINED TO RESPOND TO THEIR CUSTOMERS' QUERIES ON PROPOSAL AND PRICE QUOTATION. THEY ALSO PROVIDE VALUED-ADDED SERVICES IN TERMS OF MACHINE COMPARISON AND RECOMMENDATION}

^MARKETS:

^{* SOUTH-EAST ASIA}

^{* MIDDLE EAST}

^{* ASIA PACIFIC}

^{* OCEANIA}

^{TRADE NAMES/BRANDS:}

^{* JUKI SEWING MACHINES (JP)}

^{AGENT/DISTRIBUTOR OF THEIR SEWING MACHINES:}

^{* HONG LIN SEWING MACHINE PTE LTD}

^{* TAI MA SEWING MACHINE PTE LTD}

^{TERMS OF PAYMENT:}

^{* TRADE AND OTHER RECEIVABLES: 180 DAYS TERM (2005: 180 DAYS TERM)}

^{* TRADE AND OTHER PAYABLES : 150 DAYS TERM (2005: 150 DAYS TERM)}

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

^{* JAPANESE CHAMBER OF COMMERCE & INDUSTRY}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 14/09/2007.}

^{THE COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF JUKI CORPORATION, INCORPORATED IN JAPAN, WHICH IS ALSO THE COMPANY'S ULTIMATE HOLDING COMPANY.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE; 2004: 190; 2003: 122)}

^{*GROUP - 2006: - (2005: -)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{20 BENDEMEER ROAD}

^{#04-12 CYBERHUB}

^{SINGAPORE 339914}

^{- DATE OF CHANGE OF ADDRESS: 11/01/2003}

^{- REGIONAL HEADQUARTER}

^{OTHER FAX NUMBER:}

^{6293 9665}

^{AGENT/DISTRIBUTOR OF THEIR SEWING MACHINES:}

^{HONG LIN SEWING MACHINE PTE LTD}

^{15A TANNERY ROAD}

^{SINGAPORE 347725}

^{TEL : 65-65673601/65613583}

^{FAX : 65-65616339}

^{EMAIL : honglin@singnet.com.sg}

^{TAI MA SEWING MACHINE PTE LTD}

^{85 SIMS AVENUE}

^{SINGAPORE 387423}

^{TEL : 65-67449965}

^{FAX : 65-67461653}

^{WEBSITE : www.taima.com.sg}

^{EMAIL : taimasin@taima.com.sg}

^WEBSITE:

^{http://www.juki.com.sg}

^EMAIL:

^{juki@jukisin.com.sg}

MANAGEMENT

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

^{1) SUSUMU MATSUDA, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{2) LOOI KAM HONG @ LOOI AHA HONG, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.}

^{3) TSUTOMU YOSHIDA, A JAPANESE}

^{- BASED IN CHINA.}

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