MIRA INFORM REPORT

Report Date :

28.08.2008

IDENTIFICATION DETAILS

Name :	^SEVCON (INDIA) PRIVATE LIMITED (SINGAPORE BRANCH)
Registered Office :	17 Phillip Street #05-01 Grand Building, 048695
Country :	Singapore
Financials (as on) :	31.03.2006
Date of Incorporation :	^11.08.2004
Com. Reg. No.:	^F 06563Z
Legal Form :	^Foreign Company
Line of Business :	^Activities not Adequately Defined ^Trading in Engineering Equipment - Heating, Ventilation ^Air- Conditioning Systems

RATING & COMMENTS

MIRA’s Rating :

B

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

^{SEVCON (INDIA) PRIVATE LIMITED (SINGAPORE BRANCH)}

Line Of Business 

^{ACTIVITIES NOT ADEQUATELY DEFINED TRADING IN ENGINEERING EQUIPMENT - HEATING, VENTILATION AIR- CONDITIONING SYSTEMS}

Parent Company

^-

Financial Elements

FY 2006

BRANCH

Sales : USD 1,962,323

Networth : USD -12,332

Paid-Up Capital : -

Net result : USD 97,598

Net Margin(%) : 4.97

Return on Equity(%) : -791.42

Leverage Ratio : -28.58

COMPANY IDENTIFICATION

^{Subject Company : SEVCON (INDIA) PRIVATE LIMITED}

^{(SINGAPORE BRANCH)}

^{Former Name : -}

^{Business Address : 17 PHILLIP STREET}

^#05-01

^{GRAND BUILDING}

^{Town : SINGAPORE}

^{Postcode : 048695}

^{County : -}

^{Country : Singapore}

^{Telephone : 6538 7777}

^{Fax : 6533 1144}

^{ROC Number : F 06563Z}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Foreign Company}

^{Date Inc. : 11/08/2004}

^{Previous Legal Form : -}

^{Summary year : 31/03/2006}

^{Sales : 1,962,323}

^{Networth : -12,332}

^{Capital : -}

^{Paid-Up Capital : -}

^{Employees : -}

^{Net result : 97,598}

^{Share value : -}

^{Auditor : -}

^{BASED ON ACRA'S RECORD}

^{AUTHORISED CAPITAL 500,000.00 V/SHARE 1.00 INDIA RUPEES}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 11/08/2004}

PRINCIPAL(S)

No principals recorded in our Database

DIRECTOR(S)

^{SUNIL KHER E8279151 Director}

^{Appointed on : 05/06/1996}

^{Street : D-19, PAMPOSH ENCLAVE}

^{Town : NEW DELHI}

^{Postcode: 110 048}

^{Country : India}

^{THYAGARAJAN S/O RETHINAM CHETTIAR S0265771F Agent}

^{Appointed on : 11/08/2004}

^{Street : 838 JURONG WEST STREET 81}

^#12-159

^{Town : SINGAPORE}

^{Postcode: 640838}

^{Country : Singapore}

^{SEENIVASAN ELAYALWAR S2657283E Agent}

^{Appointed on : 11/08/2004}

^{Street : 385 BUKIT BATOK WEST AVENUE 5}

^#17-340

^{Town : SINGAPORE}

^{Postcode: 650385}

^{Country : Singapore}

^{KAZUMI TORII AAAAAP2 Director}

^{Appointed on : 25/06/1996}

^{Street : 5-10-6 HIRADAI, RYUGASAKI-SHI}

^{Town : IBARAGI}

^{Postcode : -}

^{Country : Japan}

FORMER DIRECTOR(S)

^{AUDITOR-GENERAL OF SINGAPORE UNKNOWN}

ACTIVITY(IES)

^{TRADING COMPANIES Code: 22190}

^{ENGINEERING EQUIPMENT And SUPPLIES Code: 7870}

^{PUMPS Code: 17745}

^{VALVES Code: 23010}

^{BASED ON ACRA'S RECORD}

^{1) ACTIVITIES NOT ADEQUATELY DEFINED; TRADING IN ENGINEERING}

^{EQUIPMENT - HEATING, VENTILATION, AIR-CONDITIONING SYSTEMS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

No Shareholders In Our Database

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : UNKNOWN}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : BAD}

FINANCIAL ELEMENTS

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

^{Audit Qualification: "MILD" UNCERTAINTIES "MILD" UNCERTAINTIES}

^{Date Account Lodged: 28/08/2008}

^{Balance Sheet Date: 31/03/2006 31/03/2005}

^{Number of weeks: 52 33}

^{Consolidation Code: BRANCH BRANCH}

^{--- ASSETS}

^{Inventories: 147,503 22,738}

^{Receivables: 142,696 300,095}

^{Cash,Banks, Securitis: 32,913 80,470}

^{Other current assets: 17,359}

^{Total Current Assets: 340,471 403,303}

^{TOTAL ASSETS: 340,471 403,303}

^{--- LIABILITIES}

^{Total Equity: -12,332 57,365}

^{Trade Creditors: 267,452 308,662}

^{Prepay. & Def. charges: 1,700 1,500}

^{Advanced payments: 870 9,071}

^{Provisions: 16,299 10,131}

^{Other Short term Liab.: 66,182 16,574}

^{Total short term Liab.: 352,503 345,938}

^{TOTAL LIABILITIES: 352,503 345,938}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 1,962,323 723,904}

^{Purchases,Sces & Other Goods: 1,605,994 608,590}

^{Gross Profit: 356,329 115,314}

^{NET RESULT BEFORE TAX: 113,897 82,459}

^{Tax : 16,299 10,131}

^{Net income/loss year: 97,598 72,328}

^{Directors Emoluments: 12,045 -}

^{Wages and Salaries: 26,534 -}

RATIOS

^{31/03/2006 31/03/2005}

^{Net result / Turnover(%): 0.05 0.10}

^{Stock / Turnover(%): 0.08 0.03}

^{Net Margin(%): 4.97 9.99}

^{Return on Equity(%): -791.42 126.08}

^{Return on Assets(%): 28.67 17.93}

^{Net Working capital: -12,032.00 57,365.00}

^{Cash Ratio: 0.09 0.23}

^{Quick Ratio: 0.50 1.10}

^{Current ratio: 0.97 1.17}

^{Receivables Turnover: 26.18 149.24}

^{Leverage Ratio: -28.58 6.03}

^{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}

^{Dividends Coverage : Net income loss year/Dividends}

^{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

^{NOTE: THE BALANCE SHEET FOR THE YEAR 2006 DOES NOT BALANCE. TOTAL ASSETS IS GREATER THAN TOTAL NET WORTH AND TOTAL LIABILITIES BY S$300.}

^{AUDITORS' REPORT:}

^{WE DID NOT OBSERVE TEH COUNTING OF PHYSICAL INVENTORIES AS OF 31 MARCH 2006. OWING TO THE NATURE OF THE COMPANY'S, WE WERE UNABLE TO SATISFY OURSELVES AS TO THE QUANTITY AND VALIDITY OF INVENTORIES AMOUNTING TO S$147,503 INCLUDED IN THE ACCOMPANYING FINANCIAL STATEMENTS BY ANY OTHER ALTERNATIVE AUDIT PROCEDURES. THE FINANCIAL CONDITION OF THE BRANCH WAS SEEN TO BE LIMITED IN VIEW OF THE FOLLOWING:}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 1.71 TIMES FROM US$723,904 IN FY 2005 TO US$1,962,323 AND NET PROFIT ROSE BY 34.94% TO US$97,598 (2005: US $72,328). HENCE, NET MARGIN FELL TO 4.97% (2005: 9.99%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.}

^{AVERAGE COLLECTION PERIOD HAS SHORTENED FROM 149.24 DAYS TO 26.18 DAYS. A SHORTER AVERAGE COLLECTION PERIOD POSES LESSER RISK OF TURNING INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT SERVICING ABILITY MAY BE AFFECTED IF TRADE RECEIVABLES ARE NON FORTHCOMING.}

BACKGROUND/OPERATION

^{SUBJECT WAS INCORPORATED IN INDIA, AND REGISTERED AS A FOREIGN BRANCH IN SINGAPORE, ON 11/08/2004, TRADING UNDER THE NAMESTYLE "SEVCON (INDIA) PRIVATE LIMITED (SINGAPORE BRANCH)".}

^{AS AT 25/08/2008, THE COMPANY HAS AN AUTHORISED CAPITAL OF 500,000 INDIA RUPEES.}

^{THE SINGAPORE BRANCH IS A SEGMENT OF SEVCON (INDIA) PRIVATE LIMITED AND IS NOT A SEPARATELY INCORPORATED LEGAL ENTITY.}

^{PRINCIPAL ACTIVITIES:}

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

^{(1) ACTIVITIES NOT ADEQUATELY DEFINED}

^{TRADING IN ENGINEERING EQUIPMENT - HEATING, VENTILATION AIR-}

^{CONDITIONING SYSTEMS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE IN THE BUSINESS OF TRADING IN ENGINEERING EQUIPMENT- HEATING AND VENTILATION AIR-CONDITIONING SYSTEMS.}

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

^{ABOUT SEVCON (INDIA) PRIVATE LIMITED:}

^{SEVCON (INDIA) PVT. LTD IS IN THE FIELD OF CONCEPTUALIZING, SYSTEM ENGINEERING, MARKETING, INSTALLATION, SERVICE AND RENDERING COMPREHENSIVE ENGINEERING SERVICES FROM SMALL TO LARGE HVAC PROJECTS.}

^{HAVING STARTED ITS OPERATIONS IN THE YEAR 1996 FROM HEADQUARTER IN DELHI, THE COMPANY ENJOYS ENDURING AFFILIATION WITH THE INDUSTRY, THROUGH THEIR OTHER OFFICES IN BANGALORE, CHENNAI, KOLKATA, HYDERABAD, PUNE AND MUMBAI. THE COMPANY HAS NOW ALMOST TOUCHED EVERY SECOND BUILDING WITH THEIR PRODUCTS INSTALLED.}

^{DURING THE COURSE OF ITS JOURNEY SINCE 1996 VARIOUS INDUSTRIES LIKE HOTEL, SOFTWARE, PHARMACEUTICALS, TELECOM, HOSPITAL, SCHOOLS, SHOPPING MALLS, CORPORATE OFFICES, AND EMBASSIES ETC.}

^SERVICES:

^{* VARIABLE SPEED PUMPING SYSTEM}

^{* DYNAMIC BALANCING CUM CONTROL}

^{* EXPANSION TANKS & AIR SEPARATOR}

^{* VENTILATION}

^{* THERMAL ENERGY STORAGE}

^{* ENERGY RECOVERY WHEELS}

^{* GROOVED PIPE JOINTING SYSTEM}

^{SOME OF SUBJECT'S PRINCIPALS:}

^{* ITT}

^{* NOVELAIRE}

^{* FLOWCON}

^{* CALMAC}

^{* SYSTEMAIR}

^{* VICTAULIC}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE AS SUBJECT PERSONNEL SAID THAT HE IS VERY BUSY AND REQUESTED US TO CALL BACK}

^{REGISTERED AND BUSINESS ADDRESS:}

^{17 PHILLIP STREET}

^{#05-01 GRAND BUILDING}

^{SINGAPORE 048695}

^{DATE OF CHANGE OF ADDRESS: 11/08/2004}

^{WEBSITE: http://www.sevcon.in}

^{EMAIL: -}

MANAGEMENT

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

^{1) KAZUMI TORII, A JAPANESE (DIRECTOR)}

^{- BASED IN JAPAN}

^{2) SUNIL KHER, AN INDIAN (DIRECTOR)}

^{- BASED IN INDIA}

^{3) THYAGARAJAN S/0 RETHINAM CHETTIAR, A SINGAPOREAN (AGENT)}

^{- HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE:}

^{COMMERCE OVERSEAS PTE LTD}

^{GLOBAL POWER SOURCE PTE. LTD.}

^{4) SEENIVASAN ELAYALWAR, A SINGAPOREAN (AGENT)}

^{- HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE:}

^{ALLIED DEALS (S) PTE LTD}

^{PEPPER & SPICE TRADING CO PTE LTD}

^{COMMERCE OVERSEAS PTE LTD}

^{ALFA COMMODITIES PL}

^{CAPRON IMPEX 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}

^{THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 5.2% IN 1Q 2008, SLOWER THAN THE}

^{6.0% GROWTH IN 4Q 2007. NON-OIL RE-EXPORTS GREW BY 2.0% IN 1Q 2008, IN CONTRAST}

^{TO THE 1.2% DECLINE IN 4Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY A}

^{MODERATE 1.4% IN 1Q 2008, FOLLOWING A HIGHER 9.9% GROWTH IN 4Q 2007.}

^{DOMESTIC WHOLESALE TRADE INDEX}

^{THE OVERALL DOMESTIC WHOLESALE TRADE FELL BY 7.1% IN 1Q 2008 OVER 4Q 2007.}

^{EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 6.5%.}

^{AFTER SEASONAL ADJUSTMENT, DOMESTIC SALES ROSE BY 4.4% IN 1Q 2008 OVER 4Q 2007.}

^{EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 2.7%.}

^{ON A YEAR-ON-YEAR BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 26.5% OVER}

^{THE PREVIOUS YEAR. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 12.2%. AFTER}

^{REMOVING PRICE EFFECT, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 2.8% IN 1Q}

^{2008 OVER 1Q 2007.}

^{ON A QUARTER-OVER-QUARTER BASIS, MOST WHOLESALE SECTORS REPORTED LOWER DOMESTIC}

^{SALES AFTER RECORDING BRISK BUSINESS IN THE PREVIOUS QUARTER.}

^{GENERAL WHOLESALE TRADE FELL BY 24.6% IN 1Q 2008, AFTER RECORDING HIGHER SALES}

^{OF 26.8% IN 4Q 2007. THE SALES OF TELECOMMUNICATIONS AND COMPUTERS, INDUSTRIAL}

^{AND CONSTRUCTION MACHINERY, AND HOUSEHOLD EQUIPMENT AND FURNITURE REPORTED LOWER}

^{SALES BY 13.3% 15.3% IN 1Q 2008.}

^{DOMESTIC SALES OF PETROLEUM AND PETROLEUM PRODUCTS FELL BY 7.7% IN 1Q 2008 OVER}

^{4Q 2007. AFTER ADJUSTING FOR PRICE CHANGES, SALES DECLINED BY 12.4%.}

^{ON THE OTHER HAND, SHIP CHANDLERS AND BUNKERING, FOOD, BEVERAGES AND TOBACCO}

^{RECORDED HIGHER TURNOVER OF 8.8% AND 0.8% OVER THE PREVIOUS QUARTER}

^{RESPECTIVELY.}

^{MAJORITY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 1Q 2008 OVER}

^{1Q 2007.}

^{THE GROWTH IN THE OVERALL DOMESTIC SALES WAS MAINLY CONTRIBUTED BY PETROLEUM AND}

^{PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING, AND GENERAL WHOLESALE TRADE,}

^{WHICH REPORTED HIGHER SALES OF 42.9% TO 47.4%. AFTER ADJUSTING FOR PRICE}

^{CHANGES, THE TRADING VOLUME CHANGED MARGINALLY FOR PETROLEUM AND PETROLEUM}

^{PRODUCTS, SHIP CHANDLERS AND BUNKERING WHILE THE SALE VOLUME ROSE BY 27.8% FOR}

^{GENERAL WHOLESALERS.}

^{OTHER SECTORS THAT RECORDED BETTER SALES INCLUDE TIMBER, PAINTS AND CONSTRUCTION}

^{MATERIALS (20.3%) CHEMICALS AND CHEMICAL PRODUCTS (8.7%) INDUSTRIAL AND}

^{CONSTRUCTION MACHINERY (7.6%) TRANSPORT EQUIPMENT (7.2%) AND FOOD, BEVERAGES AND}

^{TOBACCO (0.7%).}

^{CONVERSELY, DOMESTIC SALES OF ELECTRONIC COMPONENTS FELL BY 10.9%, THE FIFTH}

^{CONSECUTIVE QUARTER OF DECLINE SINCE 1Q 2007. AFTER REMOVING PRICE CHANGES,}

^{SALES OF ELECTRONIC COMPONENTS FELL BY 3.6%. WHOLESALE VALUES OF}

^{TELECOMMUNICATIONS AND COMPUTERS, AND HOUSEHOLD EQUIPMENT AND FURNITURE ALSO}

^{DECLINED MARGINALLY IN 1Q 2008. AFTER REMOVING PRICE CHANGES, SALES OF THE TWO}

^{SECTORS ROSE COMPARED TO A YEAR AGO.}

^{FOREIGN WHOLESALE TRADE INDEX}

^{FOREIGN WHOLESALE TRADE SALES FELL MARGINALLY BY 0.6% IN 1Q 2008 OVER 4Q 2007.}

^{EXCLUDING PETROLEUM, SALES FELL BY 2.4%.}

^{AFTER SEASONAL ADJUSTMENT, FOREIGN SALES ROSE BY 5.6% OVER 4Q 2007. EXCLUDING}

^{PETROLEUM, SALES ROSE BY 5.2%.}

^{ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE SALES ROSE BY 31.4% OVER 1Q 2007.}

^{EXCLUDING PETROLEUM, SALES ROSE BY 18.3%. AFTER REMOVING PRICE EFFECT, OVERSEAS}

^{SALES ROSE BY 6.7% OVER 1Q 2007.}

^{COMPARED TO 4Q 2007, THERE WAS MIXED PERFORMANCE IN FOREIGN SALES AMONG THE}

^{WHOLESALE SECTORS IN 1Q 2008.}

^{FOOD, BEVERAGES AND TOBACCO WHOLESALERS REPORTED HIGHER OVERSEAS SALES OF 16.0%}

^{IN 1Q 2008 OVER 4Q 2007, THE LARGEST INCREASE AMONG ALL SECTORS. IT WAS FOLLOWED}

^{BY GENERAL WHOLESALE TRADE (9.4%) SHIP CHANDLERS AND BUNKERING (4.7%) AND}

^{WHOLESALING OF CHEMICALS AND CHEMICAL PRODUCTS (2.2%).}

^{SALES OF PETROLEUM AND PETROLEUM PRODUCTS ROSE SLIGHTLY BY 1.3% IN 1Q 2008 OVER}

^{4Q 2007. HOWEVER, AFTER ADJUSTING FOR PRICE CHANGES, THE SALES VOLUME FELL BY}

^3.8%.

^{CONVERSELY, FOREIGN SALES OF HOUSEHOLD EQUIPMENT AND FURNITURE,}

^{TELECOMMUNICATIONS AND COMPUTERS, TIMBER, PAINTS AND CONSTRUCTION MATERIALS,}

^{TRANSPORT EQUIPMENT, INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC}

^{COMPONENTS FELL IN 1Q 2008 OVER 4Q 2007.}

^{COMPARED TO A YEAR AGO, SOME WHOLESALE SECTORS REPORTED DOUBLE-DIGIT GROWTHS IN}

^{FOREIGN SALES IN 1Q 2008 WHILE OTHERS FELL.}

^{WHOLESALING OF FOOD, BEVERAGES AND TOBACCO CONTINUED TO RECORD HIGH GROWTH RATES}

^{IN FOREIGN SALES, WITH HIGHER TURNOVER OF 89.0% IN 1Q 2008 OVER A YEAR AGO.}

^{AFTER ADJUSTING FOR PRICES, SALES VOLUME ROSE BY 72.9% OVER A YEAR AGO.}

^{WITH HIGHER FUEL PRICES. WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS,}

^{SHIP CHANDLERS AND BUNKERINH REPORTED HIGHER FOREIGN SALES OF 49.2% AND 46.3%}

^{RESPECTIVELY OVER A YEAR AGO. AFTER REMOVING PRICE EFFECT, THE SALES VOLUME OF}

^{PETROLEUM AND PETROLEUM PRODUCTS FELL BY 3.1% WHILE SALES VOLUME OF SHIP}

^{CHANDLERS AND BUNKERING HELD ITS LEVEL.}

^{GENERAL WHOLESALE TRADE, CHEMICALS AND CHEMICAL PRODUCTS, TRANSPORT EQUIPMENT,}

^{AND INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO REGISTERED STRONG SALES GROWTHS}

^{BETWEEN 10.5% TO 47.4%.}

^{CONVERSELY, FOREIGN SALES DECLINED IN 1Q 2008 FOR HOUSEHOLD EQUIPMENT AND}

^{FURNITURE, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, ELECTRONIC COMPONENTS, AND}

^{TELECOMMUNICATIONS AND COMPUTERS. THE SALES FELL BY 4.3% TO 8.7% FOR THESE}

^{SECTORS COMPARED TO 1Q 2007.}

^NEWS

^{MARCH RETAIL GROWTH FUELLED BY PETROL PRICES}

^{THE VALUE OF PETROL SALES IN MARCH SOARED 39%, AS A RESULT OF RISING CRUDE OIL}

^{PRICES, EVEN THOUGH THE ACTUAL VOLUME WAS ONLY MARGINALLY HIGHER.}

^{PETROL STATION SALES POSTED THE FASTEST GROWTH OF ALL RETAIL SEGMENTS IN MARCH,}

^{ACCORDING TO FIGURES THE DEPARTMENT OF STATISTICS RELEASED YESTERDAY.}

^{PETROL SALES ROSE 28.2% IN FEBRUARY.}

^{MOST RETAIL SEGMENTS POSTED HIGHER GROWTH MARCH AFTER A WEAKER SHOWING IN}

^{FEBRUARY FOR THE COMPUTERS, FURNITURE, OPTICAL GOODS AND BOOKS SEGMENTS. BUT}

^{MOTOR VEHICLES FELL 8.1% FROM MARCH 2007 AS A RESULT OF THE ESCALATING PETROL}

^{PRICES. CRUDE OIL HIT ALMOST US$127 A BARREL RECENTLY.}

^{THE SUPERMARKET AND FOOD AND BEVERAGE SEGMENTS ALSO REPORTED LOWER SALES}

^{ACTIVITY THAN IN FEBRUARY, WITH FALLS OF 4.7% AND 11.9%, RESPECTIVELY.}

^{OVERALL RETAIL SALES ROSE BY 5.6% COMPARED TO MARCH 2007. EXCLUDING MOTOR}

^{VEHICLES, SALES VOLUME ROSE BY 12.5%.}

^{OCBC ECONOMIST SELENA LING NOTED THE RETAIL NUMBERS INDICATED RELATIVELY HEALTHY}

^{CONSUMER SPENDING. "THIS IS A TESTIMONY TO THE FACT THAT THE SINGAPOREAN ECONOMY}

^{IS STILL ENJOYING BROAD-BASED GROWTH DESPITE THE GLOBAL SLOWDOWN," SHE SAID.}

^{THE TOTAL VALUE OF RETAIL SALES IN MARCH WAS ESTIMATED AT S$2.89 BILLION,}

^{COMPARED WITH S$2.59 BILLION IN FEBRUARY.}

^OUTLOOK

^{GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING}

^{MONTHS, WITH A NET WEIGHTED BALANCE OF 9% OF FIRMS EXPRESSING POSITIVE BUSINESS}

^{SENTIMENTS. THOSE DEALING IN TROPICAL PRODUCE, WEARING APPAREL AND FOOTWEAR, AND}

^{INDUSTRIAL MACHINERY AND EQUIPMENT ARE THE ONES EXPRESSING OPTIMISM.}

^{A NET WEIGHTED BALANCE OF 29% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS}

^{CONDITIONS FOR THE PERIOD ENDING SEPTEMBER 2008. SUPERMARKETS AND RETAILERS OF}

^{JEWWELLERY AND WATCHES EXPECT SLOWER BUSINESS AFTER THE FESTIVE PERIOD. AS A}

^{RESULT OF THE REDUCED CERTIFICATE OF ENTITLEMENT (COE) QUOTA, MOTOR VEHICLES}

^{RETAILERS ARE ESPECIALLY CONCERNED WITH THE SALES.}

^{EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE}

^{SINGAPORE DEPARTMENT OF STATISTICS}

^{THE STRAITS TIMES}

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.43.73
UK Pound	1	Rs.80.31
Euro	1	Rs.64.61

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