MIRA INFORM REPORT

Report Date :

17.04.2008

IDENTIFICATION DETAILS

Name :	ROYCELINDO PRIVATE LIMITED

Registered Office :	^{159 PASIR PANJANG ROAD} ^#01-22 ^{PASIR PANJANG DISTRIPARK}

Country :	Singapore

Financials (as on) :	30.06.2006

Date of Incorporation :	^18.04.1981

Com. Reg. No.:	^198101687D

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	General Trading and Provision of Forwaridng Services

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

ROYCELINDO PRIVATE LIMITED

Line Of Business

GENERAL TRADING AND PROVISION OF FORWARIDNG SERVICES

Parent Company

Financial Elements

FY 2006

COMPANY

Sales : S$ 20,994,543

Networth : S$ 5,988,849

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

Net result : S$ 1,793,509

Net Margin(%) : 8.54

Return on Equity(%) : 29.95

Leverage Ratio : 1.77

COMPANY IDENTIFICATION

^{Subject
Company : ROYCELINDO
PRIVATE LIMITED}

^{Former
Name : -}

^{Business
Address: 159 PASIR
PANJANG ROAD}

^#01-22

^{PASIR PANJANG DISTRIPARK}

^{Town :
SINGAPORE}

^{Postcode : 118493}

^{Country :
Singapore}

^{Telephone : 6748 1992}

^{Fax :
6748 3381}

^{ROC
Number :
198101687D}

^{Reg.
Town : -}

SUMMARY

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

^{Legal Form :
Exempt Pte Ltd}

^{Date Inc. :}^18/04/1981

^{Previous Legal Form : -}

^{Summary year :}^30/06/2006

^{Sales :}^1,136,074

^{Networth :}^-269,713

^{Capital :
-}

^{Paid-Up Capital :}^188,000

^{Employees :
5}

^{Net result :}^-13,943

^{Share value :
1}

^{Auditor :}^{ROBERT TAN & CO}

^{BASED
ON ACRA'S}

^{NO. OF SHARES CURRENCY AMOUNT}

^{ISSUED
ORDINARY 188,000 SGD 188,000}

^{PAID-UP
ORDINARY - SGD 188,000}

REFERENCES

^{Litigation : No}

^{Company
status : TRADING}

^{Started
:
18/04/1981}

PRINCIPAL(S)

^{RONNY
WONGKAR
S2611622H Managing Director}

DIRECTOR(S)

^{HU
KEK CHAY
S0014451G Company Secretary}

^{Appointed
on : 18/04/1981}

^{Street
:
24 LORONG HOW SUN}

^{HOW SUN GARDEN}

^{Town :
SINGAPORE}

^{Postcode : 536521}

^{Country :
Singapore}

^{RONNY
WONGKAR S2611622H
Managing Director}

^{Appointed
on : 18/04/1981}

^{Street
:
79 CAIRNHILL ROAD}

^#07-02

^{TRENDALE TOWER}

^{Town :
SINGAPORE}

^{Postcode : 229681}

^{Country :
Singapore}

^{RONNY
WONGKAR
S2611622H Director}

^{Appointed
on : 18/04/1981}

^{Street
:
79 CAIRNHILL ROAD}

^#07-02

^{TRENDALE TOWER}

^{Town :
SINGAPORE}

^{Postcode : 229681}

^{Country :
Singapore}

^{HENDRIK
WONGKAR WONG P 899745 Director}

^{Appointed
on : 17/10/2007}

^{Street
:
3 UNIT 6D, JALAN RAYA PERMATA HIJA}

^{UJAKARTA SELATAN}

^{Town :
JAKARTA}

^{Postcode : -}

^{Country :
Indonesia}

FORMER DIRECTOR(S)

^{MA
WEN YI
S2186171E}

^{JOYCE
KUSUMA WONGKAR S2611623F}

ACTIVITY(IES)

^{IMPORTERS
And EXPORTERS
Code: 11760}

^{BASED
ON ACRA'S RECORD}

^{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

SHAREHOLDERS(S)

^{RONNY
WONGKAR
155,000 Private Person}

^{Street
: 79 CAIRNHILL ROAD}

^#07-02

^{TRENDALE TOWER}

^{Town: SINGAPORE}

^{Postcode: 229681}

^{Country: Singapore}

^{AYRINE
MELYANTI WONG
33,000 Private Person}

^{Street
: JL. SENTUL NO. 35 RT.009}

^{RW .003}

^{Town: JAKARTA}

^Postcode:

^{Country: Indonesia}

FORMER SHAREHOLDER(S)

^{MA
WEN YI 3,000}

^{JOYCE
KUSUMA WONGKAR
33,000}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality :
AVERAGE}

^{Liquidity
: LACKING}

^{Payments
: REGULAR}

^{Trend
:
UPWARD}

^{Financial
Situation : BAD}

FINANCIAL ELEMENTS

^{Audit
Qualification: GOING CONCERN
QUALIF GOING CONCERN QUALIF}

^{Date
Account Lodged:
25/01/2007}

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

^{Number
of weeks:
52
52}

^{Consolidation
Code: COMPANY COMPANY}

^{--- ASSETS} ^---

^{Tangible
Fixed Assets:
6,976
2,701}

^{Total Fixed Assets: 6,976 2,701}

^{Receivables: 173,151 147,387}

^{Cash,Banks,
Securitis: 19,279 467}

^{Other
current assets:
1,630 2,030}

^{Total Current Assets: 194,060 149,884}

^{TOTAL ASSETS: 201,036 152,585}

^{--- LIABILITIES} ^---

^{Equity
capital:
188,000
188,000}

^{Profit
& lost Account: -457,713 -443,770}

^{Total Equity: -269,713 -255,770}

^{Trade
Creditors:
371,640
317,782}

^{Other
Short term Liab.:
99,109
90,573}

^{Total short term Liab.: 470,749 408,355}

^{TOTAL LIABILITIES: 470,749 408,355}

^{--- PROFIT & LOSS ACCOUNT} ^---

^{Net
Sales
1,136,074
1,078,994}

^{Purchases,Sces
& Other Goods:
870,810
816,004}

^{Gross
Profit: 265,264 262,990}

^{NET
RESULT BEFORE TAX:
-
-}

^{Tax
:
- -}

^{Net
income/loss year:
-13,943
-33,263}

^{Depreciation: 2,090 8,813}

^{Directors
Emoluments:
44,532
44,520}

^{Wages
and Salaries:
139,667
147,103}

RATIOS

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

^{Turnover
per employee: 227214.80 215798.80}

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

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

^{Net
Margin(%): -1.23 -3.08}

^{Return
on Equity(%): 5.17 13.01}

^{Return
on Assets(%): -6.94 -21.80}

^{Net
Working capital: -276689.00 -258471.00}

^{Cash
Ratio: 0.04 0.00}

^{Quick
Ratio: 0.41 0.36}

^{Current
ratio: 0.41 0.37}

^{Receivables
Turnover: 54.87 49.17}

^{Leverage
Ratio: -1.75 -1.60}

^{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

^{AUDITOR'S NOTE:}

^{WITHOUT QUALIFYING
OUR OPINION, WE DRAW ATTENTION TO NOTE 2 TO THE} ^{FINANCIAL
STATEMENTS. ALTHOUGH THE COMPANY INCURRED A NET LOSS OF} ^{$13,943
DURING THE YEAR ENDED 30 JUNE 2006 AND, AS OF THAT DATE, THE} ^{COMPANY'S
CURRENT LIABILITIES WHICH INCLUDED $99,109 DUE TO A} ^{DIRECTOR,
EXCEEDED ITS CURRENT ASSETS BY $276,689 AND ITS TOTAL} ^{LIABILITIES
EXCEEDED ITS TOTAL ASSETS BY $269,713, THE FINANCIAL} ^{STATEMENTS HAVE
BEEN PREPARED ON THE NORMAL GOING CONCERN BASIS ON THE} ^{ASSUMPTION
THAT FINANCIAL SUPPORT FROM THE DIRECTORS WILL CONTINUE TO} ^{BE
AVAILABLE.}

^{THE
FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE LIMITED IN VIEW}

^{OF
THE FOLLOWING:}

^{NET WORTH:}

^{THE
BALANCE SHEET WAS INADEQUATE WITH NET WORTH IN THE} ^{NEGATIVE
TERRITORY OF S$269,713 (2005: S$-255,770). THIS WAS DUE TO} ^{ACCUMULATED
LOSSES OF S$457,713 (2005: S$-443,770).}

^LEVERAGE:

^{IN THE SHORT-TERM,
SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS} ^{WHICH MADE
UP 78.95% (2005: 77.82%) OF THE TOTAL CURRENT LIABILITIES} ^{AND
AMOUNTED TO S$371,640 (2005: S$317,782).}

^{DUE TO NEGATIVE
TOTAL EQUITY, LEVERAGE RATIO WAS UNFAVOURABLE AND} ^{WORSENED TO} ^{-1.75 TIMES (2005: -1.60 TIMES).}

^LIQUIDITY:

^{IN GENERAL,
SUBJECT'S LIQUIDITY SITUATION WAS BAD AS SEEN FROM THE} ^{DEFICIT NET
WORKING CAPITAL OF S$276,689 (2005: S$-258,471), WORSENING} ^{BY 7.05%
FROM THE PRIOR FINANCIAL YEAR. AS SUCH, SUBJECT MIGHT HAVE} ^{PROBLEM
MEETING ITS SHORT-TERM OBLIGATIONS WHEN THEY FALL DUE.}

^{LIQUIDITY RATIOS
WERE LACKING. BOTH CURRENT AND QUICK RATIO STOOD AT} ^{0.41 TIMES
(2005: 0.37 TIMES) AND 0.41 TIMES (2005: 0.36 TIMES)} ^{RESPECTIVELY.}

^{PROFITABILITY:}

^{REVENUE
IMPROVED BY 5.29% TO S$1,136,074 (2005: S$1,078,994) BUT} ^{INCURRED NET
LOSS OF S$13,943 (2005: S$-33,263). HENCE, NET MARGIN WAS} ^{UNFAVOURABLE
AT -1.23% (2005: -3.08%).}

^{DEBT SERVICING:}

^{DEBT
SERVICING PROBLEMS MIGHT BE EXPECTED IF REVENUE AND EARNINGS DO} ^{NOT IMPROVED
AND PAYMENTS BY TRADE DEBTORS ARE NOT FORTHCOMING. THE} ^{AVERAGE
COLLECTION PERIOD HAS LENGTHENED TO 55 DAYS (2005: 49 DAYS).}

^{NOTES TO FINANCIAL STATEMENTS:}

^{GOING
CONCERN:}

^{ALTHOUGH THE
COMPANY INCURRED A NET LOSS OF $13,943 DURING THE YEAR} ^{ENDED 30
JUNE 2006 AND, AS OF THAT DATE, THE COMPANY'S CURRENT} ^{LIABILITIES,
WHICH INCLUDED $99,109 DUE TO A DIRECTOR, EXCEEDED ITS} ^{CURRENT
ASSETS BY $276,689 AND ITS TOTAL LIABILITIES EXCEEDED ITS OTAL} ^{ASSETS
BY $269,713, THE FINANCIAL STATEMENTS HAVE BEEN PREPARED ON THE} ^{NORMAL
GOING CONCERN BASIS ON THE ASSUMPTION THAT FINANCIAL SUPPORT} ^{FROM
THE DIRECTORS WILL CONTINUE TO BE AVAILABLE. THE FINANCIAL} ^{STATEMENTS
DO NOT INCLUDE ANY ADJUSTMENTS RELATING TO THE} ^{RECOVERABILITY AND
CLASSIFICATION OF RECORDED ASSETS AMOUNTS OR TO} ^{AMOUNTS AND
CLASSIFICATION OF LIABILITIES THAT MAY BE NECESSARY IF THE} ^{COMPANY
IS UNABLE TO CONTINUE AS A GOING CONCERN.}

^{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 RECORDS.}

BACKGROUND/OPERATION

^{THE
COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{18/04/1981
AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER} ^{ITS PRESENT
NAMESTYLE AS "ROYCELINDO PRIVATE LIMITED".}

^{THE
COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF} ^{188,000
SHARES, OF A VALUE OF S$188,000.}

^{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 & EXPORTERS)}

^{THE
COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE} ^{CLASSIFICATION
OF: IMPORTERS AND EXPORTERS}

^{DURING
THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL} ^{ACTIVITIES
ARE THOSE OF GENERAL TRADING AND PROVISION OF FORWARIDNG} ^SERVICES.

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

^ACTIVITIES:

^{*
WHOLESALING TRADE IN INDUSTRIAL, AGRICULTURAL, CONSTRUCTION &}

^{RELATED
MACHINERY & EQUIPMENT.}

^{PRODUCTS
AND SERVICES:}

^{*
AGENCY HOUSES}

^{*
IMPORTERS & EXPORTERS}

^{NO
OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT}

^{GRANTED
BY SUBJECT'S PERSONNEL}

^{REGISTERED
AND BUSINESS ADDRESS:}

^{159
PASIR PANJANG ROAD}

^#01-22

^{PASIR
PANJANG DISTRIPARK}

^{SINGAPORE
118493}

^{-
RENTED PREMISE}

^{-
PREMISE OWNED BY: BOUGAINVILLEA REALTY PTE LTD}

^{ADDRESS
PROVIDED BY CLIENT:}

^{159
PASIR PANJANG ROAD}

^#01-21

^{PASIR
PANJANG DISTRIPARK}

^{SINGAPORE
118493}

^{-
CANNOT BE CONFIRMED}

^WEBSITE:

^EMAIL:

MANAGEMENT

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

^{1)
HENDRIK WONGKAR WONG, AN INDONESIAN}

^{-
BASED IN INDONESIA}

^{2)
RONNY WONGKAR, A SINGAPORE PERMANENT RESIDENT}

^{-
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

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.6% IN 3Q 2007, WEAKER THAN THE 8.4% GROWTH IN 2Q 2007. ALTHOUGH NON-OIL RE-EXPORTS STRENGTHENED IN THE QUARTER, RETAIL SALES RECORDED SLOWER GROWTH.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.6% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 7.5%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF FOOD, BEVERAGES AND TOBACCO (45.7%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (23.3%). OTHER WHOLESALE SEGMENTS THAT REPORTED BETTER BUSINESS WERE WHOLESALING OF INDUSTRIAL AND CONSTRUCTION MACHINERY (9.7%) TELECOMMUNICATIONS AND COMPUTERS (8.3%) AND CHEMICALS AND CHEMICAL PRODUCTS (6.8%).

ON THE OTHER HAND, WHOLESALE SEGMENTS THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-19.4%), HOUSEHOLD EQUIPMENT AND FURNITURE (-4.4%), SHIP CHANDLERS AND BUNKERING (-3.1%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.9% IN 3Q 2007 OVER 3Q 2006. DOMESTIC SALES EXCLUDING PETROLEUM ROSE BY 9.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 3Q 2007 ROSE BY 12.2% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 3Q 2007 OVER PREVIOUS QUARTER. SHIP CHANDLERS AND BUNKERING EXPANDED BY 27.9%, MAINLY DUE TO HIGHER BUNKER SALES.

THE GENERAL WHOLESALE TRADE SECTOR FELL IN 3Q 2007 AFTER RECORDING STRONG GROWTH IN 2Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 3Q 2007 ROSE BY 4.3%, IN COMPARISON TO 3Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 9.0%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (51.2%) AND TIMBER, PAINT AND CONSTRUCTION MATERIALS (15.5%). OTHER WHOLESALE SECTORS THAT REGISTERED BETTER BUSINESS IN 3Q 2007 WERE CHEMICALS AND CHEMICAL PRODUCTS (7.6%) AND TELECOMMUNICATIONS AND COMPUTERS (5.0%)

FOREIGN SALES OF SHIP CHANDLERS AND BUNKERING, GENERAL WHOLESALE TRADE, INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS REGISTERED INCREASES OF 2.6% TO 6.1 %IN 3Q 2007, IN CONTRAST TO THE LOWER SALES IN THE PREVIOUS QUARTER.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 8.0% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 12.0%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 3Q 2007 ROSE BY 4.9% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 3Q 2007 WITH THE EXCEPTION OF CHEMICALS AND CHEMICAL PRODUCTS. WHOLESALE TRADE OF FOOD, BEVERAGES AND TOBACCO, AND SHIP CHANDLERS AND BUNKERING BOTH GREW BY 17.1%. WHOLESALE OF ELECTRONIC COMPONENTS ROSE BY 12.5%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE BY 1.3%, WEAKER THAN THE 7.9% IN 2Q 2007. MOTOR VEHICLES FELL BY 6.8% COMPARED TO THE 2.4% GROWTH IN 2Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.7%, A DECLINE FROM THE 11.O% IN 2Q 2007.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THIS APPLIES PARTICULARLY TO FIRMS IN THE WHOLESALING OF FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, COSMETICS AND TOILETRIES, AND HOUSEHOLD AND ELECTRICAL APPLIANCES.

AS A RESULT OF YEAR-END FESTIVE SHOPPING, A NET WEIGHTED BALANCE OF 31% OF RETAILERS EXPECTS BUSINESS TO IMPROVE IN THE COMING MONTHS. THE RETAIL SECTORS THAT ARE FORECASTING BETTER BUSINESS INCLUDING DEPARTMENT STORE AND SUPERMARKET OWNERS, WEARING APPAREL AND FOOTWEAR, FURNITURE AND FURNISHINGS, AND JEWELLERY AND WATCHES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY

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