MIRA INFORM REPORT

Report Date :

24.09.2007

IDENTIFICATION DETAILS

Name :	WELLSIDE INTERNATIONAL PTE LTD
Registered Office :	^3 Shenton Way, #24-05^, Shenton House, Singapore^– 068805
Country :	Singapore
Financials (as on) :	30.06.2006
Date of Incorporation :	^10/01/2001
Com. Reg. No.:	^200100258C
Legal Form :	^Exempt Pte Ltd
Line of Business :	Import and Export of General Merchandise, Trading in Timber and Metal Scraps

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

WELLSIDE INTERNATIONAL PTE LTD

Line Of Business 

IMPORT AND EXPORT OF GENERAL MERCHANDISE, TRADING IN TIMBER AND METAL SCRAPS

Parent Company

--

Financial Elements

FY 2006

COMPANY

Sales : S$16,525,101

Networth : S$1,671,090

Paid-Up Capital : S$1,550,000

Net result : S$13,286

Net Margin(%) : 0.08

Return on Equity(%) : 0.80

Leverage Ratio : 1.85

COMPANY IDENTIFICATION

^{Subject Company: WELLSIDE INTERNATIONAL PTE LTD}

^{Former Name: -}

^{Business Address: 3 SHENTON WAY}

^#24-05

^{SHENTON HOUSE}

^{Town: SINGAPORE}

^{Postcode: 068805}

^{County: -}

^{Country: Singapore}

^{Telephone: 6323 3940}

^{Fax: 6323 3941}

^{ROC Number: 200100258C}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Exempt Pte Ltd}

^{Date Inc.: 10/01/2001}

^{Previous Legal Form: -}

^{Summary year: 30/06/2006}

^{Sales: 16,525,101}

^{Net worth: 1,671,090}

^{Capital: -}

^{Paid-Up Capital: 1,550,000}

^{Employees: 2}

^{Net result: 13,286}

^{Share value: -}

^{Auditor: R. VENKATARAMANI & CO}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 10/01/2001}

PRINCIPAL(S)

^{MONIKA PODDAR G5589352M Director}

DIRECTOR(S)

^{MONIKA PODDAR G5589352M Director}

^{Appointed on: 04/07/2001}

^{Street: 7 TANJONG RHU ROAD}

^#19-03

^{THE WATERSIDE}

^{Town: SINGAPORE}

^{Postcode: 436887}

^{Country: Singapore}

^{ADITYA KUMAR PODDAR G5589104X Director}

^{Appointed on: 22/01/2001}

^{Street: 7 TANJONG RHU ROAD}

^#19-03

^{THE WATERSIDE}

^{Town: SINGAPORE}

^{Postcode: 436887}

^{Country: Singapore}

^{MONIKA PODDAR G5589352M Company Secretary}

^{Appointed on: 14/01/2006}

^{Street: 7 TANJONG RHU ROAD}

^#19-03

^{THE WATERSIDE}

^{Town: SINGAPORE}

^{Postcode: 436887}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{HADA SIDDHARTH A8420565}

^{LIM JUAT HENG S1121004Z}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{STEEL PRODUCTS Code:20410}

^{SCRAP METALS Code:19045}

^{TIMBER - WHSLE Code:21690}

^{BASED ON ACRA'S RECORD AS AT 17/09/2007}

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

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{UCO BANK}

SHAREHOLDERS(S)

^{ADITYA KUMAR PODDAR 4,499,999 Private Person}

^{Street: 7 TANJONG RHU ROAD}

^#19-03

^{THE WATERSIDE}

^{Town: SINGAPORE}

^{Postcode: 436887}

^{Country: Singapore}

^{MONIKA PODDAR 550,001 Private Person}

^{Street: 7 TANJONG RHU ROAD}

^#19-03

^{THE WATERSIDE}

^{Town: SINGAPORE}

^{Postcode: 436887}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{HADA SIDDHARTH 450,000}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{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) "MILD" UNCERTAINTIES" MILD" UNCERTAINTIES}

^{Date Account Lodged: 24/02/2007}

^{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: 9,875 19,751 3,578}

^{Total Fixed Assets: 9,875 19,751 3,578}

^{Receivables: 3,903,886 2,925,954 2,608,029}

^{Cash,Banks,Securities: 479,710 542,619 169,246}

^{Other current assets: 370,215 3,628 21,816}

^{Total Current Assets: 4,753,811 3,472,201 2,799,091}

^{TOTAL ASSETS: 4,763,686 3,491,952 2,802,669}

^{--- LIABILITIES}

^{Equity capital: 1,550,000 2,000,000 1,000,000}

^{Profit & loss Account: 121,090 107,804 84,709}

^{Total Equity: 1,671,090 2,107,804 1,084,709}

^{Trade Creditors: 138,637 178,620 665,197}

^{Prepay. & Def. charges: 9,650 14,753 35,254}

^{Due to Bank: 2,942,072 - -}

^{Provisions: 2,238 5,237 5,278}

^{Other Short term Liab.: - 1,185,538 1,012,231}

^{Total short term Liab.: 3,092,597 1,384,148 1,717,960}

^{TOTAL LIABILITIES: 3,092,597 1,384,148 1,717,960}

PROFIT & LOSS ACCOUNT

^{Net Sales 16,525,101 26,058,275 20,026,547}

^{Purchases,Sces & Other Goods: 15,895,042 25,230,717 19,534,647}

^{Gross Profit: 630,059 827,558 491,900}

^{Result of ordinary operations 309,258 454,104 194,655}

^{NET RESULT BEFORE TAX: 15,614 25,106 58,281}

^{Tax: 2,328 2,011 3,859}

^{Net income/loss year: 13,286 23,095 54,422}

^{Interest Paid: 176,446 252,106 96,332}

^{Depreciation: 9,876 22,234 6,596}

^{Directors Emoluments: 144,000 144,000 144,000}

^{Wages and Salaries: 70,909 79,538 29,522}

^{Financial Income: 8,872 149 -}

RATIOS

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

^{Turnover per employee: 8262550.50 13029137.50 10013273.50}

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

^{Net Margin(%): 0.08 0.09 0.27}

^{Return on Equity(%): 0.80 1.10 5.02}

^{Return on Assets(%): 0.28 0.66 1.94}

^{Net Working capital: 1661214.00 2088053.00 1081131.00}

^{Cash Ratio: 0.16 0.39 0.10}

^{Quick Ratio: 1.42 2.51 1.62}

^{Current ratio: 1.54 2.51 1.63}

^{Receivables Turnover: 85.05 40.42 46.88}

^{Leverage Ratio: 1.85 0.66 1.58}

^{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 EVEN THOUGH NET WORTH DECREASED BY 20.72% FROM S$2,107,804 IN 2005 TO S$1,671,090 IN 2006.}

^{THIS WAS DUE TO THE DECREASE IN SUBJECT'S PAID UP CAPITAL FROM S$2,000,000 TO S$1,550,000.}

^{HOWEVER, IT MUST BE NOTED THAT SUBJECT POSTED HIGHER ACCUMULATED PROFIT OF S$121,090 (2005: S$107,804); A RISE OF 12.32% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM IN 2006, SUBJECT WAS LARGELY FINANCED BY BILLS PAYABLE WHICH MADE UP 95.13% (2005: - ) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$2,942,072 (2005: - ).}

^{HOWEVER IN THE SHORT-TERM IN 2005, SUBJECT WAS LARGELY FINANCED BY AMOUNTS DUE TO A DIRECTOR WHICH MADE UP 85.65% (2006: - ) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$1,185,538 (2006: - ).}

^{TRADE CREDITORS FELL BY 22.38% TO S$138,637 (2005: S$178,620).}

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

^{IN ALL, LEVERAGE RATIO ROSE FROM 0.66 TIMES TO 1.85 TIMES AS A RESULT OF A FALL IN TOTAL EQUITY AND A RISE IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE EVEN THOUGH NET WORKING CAPITAL FELL BY 20.44% TO S$1,661,214 (2005: S$2,088,053).}

^{SIMILARLY, CURRENT RATIO FELL TO 1.54 TIMES, DOWN FROM 2.51 TIMES AND QUICK RATIO DECREASED TO 1.42 TIMES FROM 2.51 TIMES IN 2005.}

^{PROFITABILITY:}

^{REVENUE POSTED A DECREASE OF 36.58% FROM S$26,058,275 IN 2005 TO S$16,525,101 AND NET PROFIT DROPPED BY 42.47% TO S$13,286 (2005: S$23,095).}

^{HENCE, NET MARGIN FELL TO 0.08% (2005: 0.09%).}

^{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 1.20 TIMES}

^{(2005: 1.10 TIMES).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{BILLS PAYABLES, FIXED DEPOSITS AND CREDIT FACILITIES WITH BANKS}

^{CREDIT FACILITIES WITH BANKS ARE SECURED AGAINST A LIEN OVER THE FIXED DEPOSITS HELD IN THE NAME OF THE COMPANY AND IN THE NAME OF ONE OF THE DIRECTORS AND SHAREHOLDERS OF THE COMPANY AND PERSONAL GUARANTEE OF TWO OF THE DIRECTORS AND THE SHAREHOLDERS OF THE COMPANY.}

^{CONTINGENT LIABILITIES}

^{FOR EXPORT BILLS DISCOUNTED* - 2006: - (2005: S$7,584,162)}

^{REPRESENTS EXPORT INVOICES UNDER USANCE LETTER OF CREDIT AND BILLS UNDER DP TERMS, DISCOUNTED WITH BANK.}

^{LIMITED EXEMPT PRIVATE COMPANY:}

^{WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT OWNED BY ANY CORPORATE BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY IS KNOWN AS AN EXEMPT PRIVATE COMPANY.}

^{AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER AMOUNT OF PRIVACY THAN A PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS DIRECTORS, SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:}

^{1. THE COMPANY IS AN EXEMPT PRIVATE COMPANY.}

^{2. THE AUDITED ACCOUNTS HAVE BEEN TABLED BEFORE THE SHAREHOLDERS AT THE ANNUAL}

^{GENERAL MEETING.}

^{3. THE COMPANY IS ABLE TO MEET ITS LIABILITIES.}

^{THERE IS THEREFORE NO DISCLOSURE TO THE PUBLIC OF THE ACCOUNTS OF THE COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITED EVERY YEAR AND APPROVED AT AN ANNUAL GENERAL MEETING OF THE COMPANY.}

^{A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE GOVERNMENT MAY BECOME AN EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN THE NATIONAL INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION.}

^{EXEMPT FROM AUDIT}

^{AN EXEMPT PRIVATE COMPANY IS EXEMPT FROM AUDIT REQUIREMENTS IF THE STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31 MAY 2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED $2.5 MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT OF THE TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE STILL REQUIRED TO MAINTAIN PROPER ACCOUNTING.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 10/01/2001 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE OF "WELLSIDE INTERNATIONAL PTE LTD".}

^{AS AT 17/09/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 1,050,000 ORDINARY SHARES OF A VALUE OF S$1,050,000 AND 4,450,000 PREFERENCE SHARES OF A VALUE OF S$4,450,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING AND 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(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TO CARRY ON THE BUSINESS OF IMPORT AND EXPORT OF GENERAL MERCHANDISE, TRADING IN TIMBER AND METAL SCRAPS.}

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

^ACTIVITIES:

^{*TRADING OF TIMBERS, SCRAP METAL, STEEL PRODUCTS.}

^{NUMBER OF EMPLOYEES}

^*2

^PRODUCTS:

^*STEEL

^{*TIMBER - ROUND LOGS SPECIES, TEAK BALAU, ETC.}

^{*METAL SCRAP}

^{EXPORT COUNTRIES:}

^*INDIA

^{IMPORT COUNTRIES}

^{*LATIN AMERICA}

^{TERMS OF PAYMENT:}

^{*CUSTOMERS: LETTERS OF CREDIT}

^{ABOUT ADITYA PODDAR (ONE OF THE DIRECTORS/SHAREHOLDERS):}

^{*ADITYA IS A FIRST GENERATION ENTREPRENEUR FROM INDIA WHO STARTED WELLSIDE}

^{INTERNATIONAL PTE LTD IN 2001 IN SINGAPORE AS A TRADING HUB.}

^{*HE CURRENTLY HAS COMPANIES IN INDIA, PHILIPPINES, CENTRAL AND SOUTH AMERICA TO}

^{OUTSOURCE COMMODITIES TO MEET INDIAN DEMANDS OF TIMBER ROUND LOGS, METAL SCRAP}

^{AND PLANTATION TEAKWOOD LOGS.}

^{*THE COMPANY HAS ALSO DIVERSIFIED ITS ACTIVITIES TO INCLUDE INVESTMENT AND}

^{DEVELOPMENT OF REAL ESTATE IN INDIA IN ORDER TO DEVELOP ITS FINANCIAL STRENGTHS}

^{AND ASSET BASE.}

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

^{NUMBER OF EMPLOYEES (30 JUNE):}

^{*COMPANY - 2006/05: NOT AVAILABLE (2004: 4; 2003: NOT AVAILABLE)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{3 SHENTON WAY}

^#24-05

^{SHENTON HOUSE}

^{SINGAPORE 068805}

^{DATE OF CHANGE OF ADDRESS: 13/09/2004}

^WEBSITE:

^NIL

^EMAIL:

^{ak@wellside.com.sg}

MANAGEMENT

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

^{1) ADITYA KUMAR PODDAR, AN INDIAN}

^{- BASED IN SINGAPORE.}

^{2) MONIKA PODDAR, AN INDIAN}

^{- 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