MIRA INFORM REPORT

Report Date :

15.02.2008

IDENTIFICATION DETAILS

Name :	S M JEWELS PTE LTD
Registered Office :	545 Orchard Road, #09-10 Far East Shopping Centre
Country :	Singapore
Financials (as on) :	31/12/2004
Date of Incorporation :	^29/05/1996
Com. Reg. No.:	^199603890E
Legal Form :	^Exempt Pte Ltd
Line of Business :	^Wholesale jewelry and general ^wholesale trade

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

^{S.M.JEWELS PTE LTD}

Line Of Business 

^{WHOLESALE JEWELRY AND GENERAL WHOLESALE TRADE}

Parent Company

--

Financial Elements

FY 2004

COMPANY

^{Sales S$6,594,080}

^{Networth S$2,807,175}

^{Paid-Up Capital S$3,000,000}

^{Net result S$-107,952}

^{Net Margin(%) -1.64}

^{Return on Equity(%) -3.85}

Leverage Ratio 1.33

COMPANY IDENTIFICATION

^{Subject Company : S.M.JEWELS PTE LTD}

^{Business Address: 545 ORCHARD ROAD}

^{#09-10 FAR EAST SHOPPING CENTRE}

^{Town: SINGAPORE}

^{Postcode: 238882}

^{Country: Singapore}

^{Telephone: 6734 1409}

^{Fax: 6734 1404}

^{ROC Number: 199603890E}

^{Reg. Town:}

SUMMARY

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

^{Legal Form: Exempt Pte Ltd}

^{Date Inc.: 29/05/1996}

^{Sales: 6,594,080}

^{Networth : 2,807,175}

^{Capital: 3,000,000}

^{Paid-Up Capital: 3,000,000}

^Employees:

^{Net result : -107,952}

^{Share value: 1}

^{AUDITOR: C T CHNG & CO}

REFERENCES

Litigation : No

Company status : TRADING

Started : 29/05/1996

PRINCIPAL(S)

^{SHAH RITESH KIRTILAL S7382969J Managing Director}

DIRECTOR(S)

^{SHAH RITESH KIRTILAL S7382969J Managing Director}

^{Appointed on : 18/10/2000}

^{Street : 2 JALAN BATU}

^#09-57

^{Town: SINGAPORE}

^{Postcode: 431002}

^{Country: Singapore}

^{SHAH RITESH KIRTILAL S7382969J Director}

^{Appointed on : 29/05/1996}

^{Street : 2 JALAN BATU}

^#09-57

^{Town: SINGAPORE}

^{Postcode: 431002}

^{Country: Singapore}

^{SHAH MINAXI RITESH Z1428707 Director}

^{Appointed on : 08/02/2001}

^{Street : 46 DEVAL BLDG KAMATHIPURA M.R. RD}

^{BYCULLA NAGPADA}

^{Town: MUMBAI}

^{Postcode: U00008}

^{Country: India}

^{SHAH MINAXI RITESH Z1428707 Company Secretary}

^{Appointed on : 19/02/2005}

^{Street : 46 DEVAL BLDG KAMATHIPURA M.R. RD}

^{BYCULLA NAGPADA}

^{Town: MUMBAI}

^{Postcode: U00008}

^{Country: India}

^{SHAH PARESHKUMAR SAMARATHLAL Z1548176 Director}

^{Appointed on : 15/09/2005}

^{Street : 545 ORCHARD ROAD}

^#09-40

^{FAR EAST SHOPPING CENTRE}

^{Town: SINGAPORE}

^{Postcode: 238882}

^{Country: Singapore}

^{SHAH HITESH KISHORKUMAR G5701798N Director}

^{Appointed on : 05/05/2006}

^{Street : 545 ORCHARD ROAD}

^#09-40

^{FAR EAST SHOPPING}

^{Town: SINGAPORE}

^{Postcode: 238882}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{CHANDRA KUMAR PUROHIT F5539642Q}

ACTIVITY(IES)

^{JEWELLERS - WHSLE Code:12280}

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD}

^{1) WHOLESALE OF JEWELLERY}

^{2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS) OF THE COMPANY ARE IN THE BUSINESS OF WHOLESALE JEWELRY AND 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

SHAREHOLDERS(S)

^{SHAH RITESH KIRTILAL 2,799,900 Private Person}

^{Street : 2 JALAN BATU}

^#09-57

^{Town: SINGAPORE}

^{Postcode: 431002}

^{Country: Singapore}

^{PAKIR MOHAMED S/O A R RAHIMSA 100 Private Person}

^{Street : 6B BOON TIONG ROAD}

^#09-57

^{BOON TIONG VILLE}

^{Town: SINGAPORE}

^{Postcode: 165006}

^{Country: Singapore}

^{SHAH MINAXI RITESH 200,000 Private Person}

^{Street : 46 DEVAL BLDG KAMATHIPURA M.R. RD}

^{BYCULLA NAGPADA}

^{Town: MUMBAI}

^{Postcode: U00008}

^{Country: India}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity : UNKNOWN}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation: UNKNOWN}

FINANCIAL ELEMENTS

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

^{Date Account Lodged: 14/02/2008}

^{Balance Sheet Date: 31/12/2004 31/12/2003}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 1,383}

^{Total Fixed Assets: 1,383}

^{Inventories: 1,649,205 1,747,996}

^{Receivables: 4,839,940 3,991,021}

^{Cash,Banks, Securitis: 36,479 28,490}

^{Other current assets: 5,161 5,001}

^{Total Current Assets: 6,530,785 5,772,508}

^{TOTAL ASSETS: 6,530,785 5,773,891}

^{--- LIABILITIES ---}

^{Equity capital: 3,000,000 3,000,000}

^{Profit & lost Account: -192,825 -84,873}

^{Total Equity: 2,807,175 2,915,127}

^{Trade Creditors: 2,558,100 2,802,095}

^{Prepay. & Def. charges: 3,365 9,445}

^{Other Short term Liab.: 1,162,145 47,224}

^{Total short term Liab.: 3,723,610 2,858,764}

^{TOTAL LIABILITIES: 3,723,610 2,858,764}

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

^{Net Sales 6,594,080 5,083,261}

^{NET RESULT BEFORE TAX: -107,198 -100,535}

^{Tax : 754}

^{Net income/loss year: -107,952 -100,535}

^{Depreciation: 3,494 22,050}

^{Directors Emoluments: 142,270 120,000}

^{Wages and Salaries: 243,070 164,155}

^{Financial Income: 5 4}

RATIOS

^{31/12/2004 31/12/2003}

^{Net result / Turnover(%): -0.02 -0.02}

^{Stock / Turnover(%): 0.25 0.34}

^{Net Margin(%): -1.64 -1.98}

^{Return on Equity(%): -3.85 -3.45}

^{Return on Assets(%): -1.65 -1.74}

^{Net Working capital: 2807175.00 2913744.00}

^{Cash Ratio: 0.01 0.01}

^{Quick Ratio: 1.31 1.41}

^{Current ratio: 1.75 2.02}

^{Receivables Turnover: 264.23 282.65}

^{Leverage Ratio: 1.33 0.98}

^{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)/1000}

^{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 FINANCIAL STATEMENT IN THIS REPORT IS THOSE OF 2004 AND IS CONSIDERED OUTDATED. HENCE, FINANCIAL ANALYSIS IS NOT CONDUCTED. THE FINANCIAL STATEMENT SERVES AS A REFERENCE ONLY.}

^{IN REPLACEMENT, ADVERSE CHECK ON IT'S LOCAL DIRECTORS IS MADE}

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 SUBJECT WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 29/05/1996 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "S.M.JEWELS PTE LTD".}

^{AS AT 11/02/2008, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 3,000,000 SHARES, OF A VALUE OF S$3,000,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF JEWELLERY}

^{2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE IN THE BUSINESS OF WHOLESALE JEWELRY AND GENERAL WHOLESALE TRADE INCLUDING GENERAL IMPORTERS AND EXPORTERS.}

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

^{SUBJECT IS A JEWELLERY RETAILER AND A DIAMOND WHOLESALER.}

^PRODUCTS:

^*DIAMONDS

^{*DIAMOND JEWELLERIES}

^*JEWELLERIES

^SUPPLIER:

^{*SEJAL GEMS PVT. LTD.}

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

^{*SINGAPORE JEWELLERS ASSOCIATION}

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

^{REGISTERED AND BUSINESS ADDRESS:}

^{545 ORCHARD ROAD}

^#09-10

^{FAR EAST SHOPPING CENTRE}

^{SINGAPORE 238882}

^{DATE OF CHANGE OF ADDRESS: 21/11/2002}

^{- RENTED PREMISE}

^{- OWNED BY: ONG MUI HOY}

^WEBSITE:-

^---

^EMAIL:

^{shahhitesh_k@hotmail.com}

MANAGEMENT

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

^{1) SHAH HITESH KISHORKUMAR, AN INDIAN}

^{- BASED IN SINGAPORE}

^{2) SHAH RITESH KIRTILAL, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

^{3) SHAH MINAXI RITESH, AN INDIAN}

^{- BASED IN INDIA}

^{4) SHAH PARESHKUMAR SAMARATHLAL, AN INDIAN}

^{- BASED IN SINGAPORE}

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME: SHAH RITESH KIRTILAL ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP : NIL}

^{ANNUAL VALUE : N.A.}

^{CO-OWNER (S) : N.A.}

^{* ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.}

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