MIRA INFORM REPORT

Report Date :

08.01.2008

IDENTIFICATION DETAILS

Name :	SHIMANO (SINGAPORE) PTE LTD

Registered Office :	^{20 Benoi Sector} ^{Jurong Town 629852}

Country :	Singapore

Financials (as on) :	30.11.2006

Date of Incorporation :	28.05.1973

Com. Reg. No.:	^197300991Z

Legal Form :	Pte Ltd

Line of Business :	^{Manufacture And Sale Of Bicycle Parts, Multi-Speed Gears, Fishing Reels And Rods}

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Exists

Subject Company

SHIMANO (SINGAPORE) PTE LTD

Line Of Business

^{MANUFACTURE AND SALE
OF BICYCLE PARTS, MULTI-SPEED GEARS, FISHING REELS AND RODS.}

Parent Company

^{SHIMANO INCORPORATED}

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : S$247,638,000

Networth : S$632,740,000

Paid-Up Capital : S$ 39,375,000

Net result : S$ 37,372,000

Net Margin(%) : 15.09

Return on Equity(%) : 5.91

Leverage Ratio : 0.08

COMPANY IDENTIFICATION

^{Subject
Company : SHIMANO (SINGAPORE) PRIVATE LIMITED}

^{Former
Name :
-}

^{Business
Address : 20 BENOI SECTOR} ^JURONG
TOWN

^{Town :
SINGAPORE}

^{Postcode :
629852}

^{County :
-}

^{Country :
Singapore}

^{Telephone :
6265 4777}

^{Fax :
6265 1575}

^{ROC
Number :
197300991Z}

^{Reg. Town
: -}

SUMMARY

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

^{Legal Form :}^{Pte Ltd}

^{Date Inc. :}^28/05/1973

^{Previous Legal Form : -}

^{Summary year :}^30/11/2006

^{Sales :}^247,638,000

^{Networth :}^632,740,000

^{Capital :
-}

^{Paid-Up Capital :}^39,375,000

^{Employees :}

^{Net result :}^37,372,000

^{Share value :
-}

^{Auditor :}^{DELOITTE & TOUCHE}

PRINCIPAL(S)

^{CHIAM YAU
TENG
S0486376C Director}

DIRECTOR(S)

^{CHIAM
YAU TENG
S0486376C Director}

^{Appointed
on :
01/07/1995}

^{Street
: 19 BURGUNDY RISE}

^{BURGUNDY
HILL}

^{Town : SINGAPORE}

^{Postcode :
658870}

^{Country : Singapore}

^{CHITOSHI
YUGE TG0803518 Director}

^{Appointed
on : 18/01/1979}

^{Street
:
60 FARRER ROAD} ^#03-04 ^{SPANISH VILLAGE}

^{Town :
SINGAPORE}

^{Postcode : 268846}

^{Country : Singapore}

^{YOSHIZO
SHIMANO TF2551919
Director}

^{Appointed
on : 23/01/1995}

^{Street
:
4-3-28 NAKAMACHI MIDORIGAOKA} ^SAKAI

^{Town : OSAKA}

^{Postcode :}

^{Country : Japan}

^{FUMINORI
YOSHIDA S2701087C Managing Director}

^{Appointed
on :
11/06/1999}

^{Street
: 78 BAYSHORE ROAD} ^#15-21 ^{COSTA DEL SOL}

^{Town : SINGAPORE}

^{Postcode :
469991}

^{Country : Singapore}

^{FUMINORI
YOSHIDA S2701087C Director}

^{Appointed
on :
11/06/1999}

^{Street : 78 BAYSHORE ROAD} ^#15-21 ^{COSTA DEL SOL}

^{Town: SINGAPORE}

^{Postcode: 469991}

^{Country: Singapore}

^{TAN
CHENG KIM
S0084726G Company Secretary}

^{Appointed
on :
08/01/1993}

^{Street
: 47C HONGKONG STREET} ^{TET BUILDING}

^{Town: SINGAPORE}

^{Postcode: 059685}

^{Country: Singapore}

^{SHINJI
FUKUOKA
TE1126811 Director}

^{Appointed
on : 18/02/2000}

^{Street
: 3-12-7 WAKAMATSUDAI,
SAKAI}

^{Town: OSAKA}

^Postcode:

^{Country:
Japan}

^{YOZO
SHIMANO
TF5783731 Director}

^{Appointed
on : 21/11/2001}

^{Street
:
2-60 TAKASAGO-CHO}

^SAKAI

^{Town : OSAKA}

^Postcode:

^{Country : Japan}

FORMER DIRECTOR(S)

^{KAJIYAMA YOSHINORI SE9409052}

^{SHIMANO KEIZO G1049504}

^{MATSUMOTO SHUZO G4879411}

ACTIVITY(IES)

^{BICYCLES - WHSLE And MFRS Code:2010}

^{BICYCLES - PARTS And SUPPLIES - WHSLE And
MFRS Code:1990}

^{FISHING SUPPLIES Code:9070}

^{BASED ON ACRA'S RECORD}

^{1) MANUFACTURING AND ASSEMBLY OF
BICYCLES, TRICYCLES, TRISHAWS AND}

^{INVALID CARRIAGES;}

PREMISES/PROPERTY INFORMATIONS

^{Date : 15/03/2007}

^{Estimated
Value : Tax rate:
10}

^{Site
Address : 20 BENOI SECTOR} ^{JURONG TOWN}

^{Town : SINGAPORE}

^County:

^{Postcode : 629852}

^{Country : Singapore}

^{Annual
Value :
1,923,000}

^{TAX
RATE OF 4% MEANS THE ADDRESS IS OWNER OCCUPIED}

^{TAX
RATE OF 12% MEANS THE ADDRESS IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER}

BANKERS

^{THE BANK OF TOKYO-MITSUBISHI UFJ,}

^{LTD (THE BANK OF TOKYO-MITSUBISHI, LTD)}

ASSOCIATED COMPANY(IES)

^{SIN SHOWA METAL PTE LTD}

^{20
BENOI SECTOR}

^{SINGAPORE Singapore}

^{PENINSULA PRECISION STAMPING} ^Malaysia

SHAREHOLDERS(S)

^{SHIMANO INCORPORATED 39,375,000 Company}

^{Street
: 3-77 OIMATSU-CHO,
SAKAI-KU} ^{SAKAI CITY}

^{Town: OSAKA}

^{Postcode: 590-8577}

^{Country: Japan}

FORMER SHAREHOLDER(S)

^{SHIMANO INDUSTRIAL CO LTD 10,500,000}

HOLDING COMPANY

^{SHIMANO INCORPORATED UF10952N % :
100}

SUBSIDIARY(IES)

^{MSC PTE LTD}

^{P.T. SHIMANO BATAM}

^{SHIMANO (MALAYSIA) SDN BHD}

^{SHIMANO COMPONENTS (MALAYSIA) SDN BHD}

^{SHIMANO (MERSING) SDN BHD}

^{SHIMANO ITALIA S.P.A.}

^{SHIMANO CZECH REPUBLIC S.R.O. (II)}

^{SHIMANO (SHANGHAI) BICYCLE COMPONENTS CO.
LTD}

^{SHIMANO (TAIWAN) CO. LTD}

^{SHIMANO (KUNSHAN) FISHING TACKLE CO. LTD}

^{SHIMANO (TIANJIN) BICYCLE COMPONENTS CO.
LTD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality :
AVERAGE}

^{Liquidity
:
ABUNDANT}

^{Payments
:
REGULAR}

^{Trend
:
UPWARD}

^{Financial
Situation :
GOOD}

LITIGATION(S)

^{Type
Of Case: District Court - W/S P}

^{Case
Number: DCS01100/1997}

Defendant SHIMANO (SINGAPORE) PRIVATE LIMIT ROC # : 197300991Z

^{Type
Of Case: District Court - W/S P}

^{Case
Number: DCS00965/1995}

Defendant SHIMANO (SINGAPORE) PRIVATE LIMIT ROC # : 197300991Z

^{Type
Of Case: High Court - W/S P}

^{Case
Number: HWS00117/1994}

Defendant SHIMANO (SINGAPORE) PRIVATE LIMIT ROC # : 197300991Z

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 03/04/2007}

^{Balance
Sheet Date:
30/11/2006 30/11/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary
Exp 30,154,000 29,262,000}

^{Tangible
Fixed Assets:
39,439,000
34,434,000}

^{Investments 39,650,000 40,227,000}

^{Total Fixed Assets: 109,243,000 103,923,000}

^{Inventories: 46,164,000 34,856,000}

^{Receivables: 60,856,000 35,556,000}

^{Cash,Banks,
Securitis: 266,514,000 400,484,000}

^{Other
current assets:
199,176,000
58,621,000}

^{Total Current Assets: 572,710,000 529,517,000}

^{TOTAL ASSETS: 681,953,000 633,440,000}

^{--- LIABILITIES ---}

^{Equity
capital:
39,375,000
39,375,000}

^{Profit
& lost Account: 593,365,000 561,733,000}

^{Total Equity: 632,740,000 601,108,000}

^{L/T deffered taxes: 4,517,000 3,408,000}

^{Total L/T Liabilities: 4,517,000 3,408,000}

^{Trade
Creditors:
29,757,000 17,428,000}

^{Prepay. & Def. charges: 4,131,000 4,266,000}

^{Advanced
payments:}

^{Provisions: 10,060,000 6,589,000}

^{Other
Short term Liab.:
748,000
641,000}

^{Total short term Liab.: 44,696,000 28,924,000}

^{TOTAL LIABILITIES: 49,213,000 32,332,000}

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

^{Net
Sales
247,638,000
219,080,000}

^{Purchases,Sces
& Other Goods: 184,458,000 175,048,000}

^{Gross
Profit:
63,180,000
44,032,000}

^{Result
of ordinary operations}

^{NET
RESULT BEFORE TAX: 48,676,000 34,336,000}

^{Tax
:
11,304,000
5,639,000}

^{Net
income/loss year:
37,372,000
28,697,000}

^{Depreciation: 7,117,000 7,680,000}

^{Directors
Emoluments:
393,000
422,000}

^{Wages
and Salaries:
22,616,000
20,975,000}

RATIOS

                                    ^{30/11/2006                  30/11/2005}  ^{Net result / Turnover(%):      0.15                       0.13}  ^{Stock / Turnover(%):          0.19                       0.16}  ^{Net Margin(%):
15.09
13.10}  ^{Return on Equity(%):          5.91                       4.77}  ^{Return on Assets(%):          5.48
        4.53}  ^{Dividends Coverage:           6.51                       3.54}  ^{Net Working capital:
528014000.00
500593000.00}  ^{Cash Ratio:                          5.96                                     13.85}

^{Quick Ratio: 7.32 15.08} ^{Current
ratio: 12.81 18.31}

^{Receivables
Turnover: 88.47 58.43}

^{Leverage
Ratio: 0.08 0.05}

^{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}

^{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 STABLE IN VIEW}

^{OF
THE FOLLOWING:}

^{NET WORTH:}

^{THE
BALANCE SHEET WAS CONSIDERED SOUND WITH NET WORTH IMPROVED BY} ^{5.26% FROM
S$601,108,000 IN 2005 TO S$632,740,000 IN 2006.}

^{THIS
WAS DUE TO HIGHER RETAINED EARNINGS OF S$593,365,000} ^{(2005:
S$561,733,000); A RISE OF 5.63% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN
THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS} ^{WHICH MADE
UP 66.58% (2005: 60.25%) OF THE TOTAL CURRENT LIABILITIES} ^{AND
AMOUNTED TO S$29,757,000 (2005: S$17,428,000).}

^{THE
BREAKDOWN IS AS FOLLOWS:}

^{-OUTSIDE
PARTIES - 2006: S$19,810,000 (2005: S$10,012,000)}

^{-HOLDING
COMPANY - 2006: S$6,120,000 (2005: S$4,269,000)}

^{-SUBSIDIARIES
- 2006: S$3,469,000 (2005: S$2,712,000)}

^{-RELATED
COMPANIES - 2006: S$232,000 (2005: S$334,000)}

^{-ASSOCIATE
- 2006: S$126,000 (2005: S$101,000)}

^{SUBJECT'S
LONG TERM LIABILITY, WHICH CONSISTS OF DEFERRED TAX} ^{LIABILITIES,
ROSE BY 32.54% TO S$4,517,000 (2005: S$3,408,000).}

^{IN
ALL, LEVERAGE RATIO ROSE FROM 0.05 TIMES TO 0.08 TIMES AS A RESULT} ^{OF A RISE IN
TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN
GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM} ^{THE RISE IN
NET WORKING CAPITAL BY 5.48% TO S$528,014,000} ^{(2005: S$500,593,000).}

^{CURRENT
RATIO FELL TO 12.81 TIMES, DOWN FROM 18.31 TIMES AND QUICK} ^{RATIO
DECREASED TO 7.32 TIMES FROM 15.08 TIMES IN 2005.}

^{PROFITABILITY:}

^{REVENUE
POSTED AN INCREASE OF 13.04% FROM S$219,080,000 IN 2005 TO} ^{S$247,638,000
AND NET PROFIT SURGED BY 30.23% TO S$37,372,000} ^{(2005:
S$28,697,000).}

^{HENCE,
NET MARGIN ROSE TO 15.09% (2005: 13.10%).}

^{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,
SUBJECT DID NOT INCUR ANY INTEREST EXPENSES DURING THE}

^{FINANCIAL
YEAR.}

^{NON-CURRENT ASSETS:}

^{THE
FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-OTHER
RECIEVABLES AND PREPAYMENTS - 2006: S$49,000 (2005: S$78,000)}

^{-LOAN
RECIEVABLES FROM SUBSIDIARIES - 2006: S$30,105,000}

^{(2005:
S$29,184,000)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{EVENTS
AFTER BALANCE SHEET DATE} ^{ON DECEMBER 1 2006, THE COMPANY INVESTED AN
ADDITIONAL US$1,188,000} ^{IN THE SHARE CAPITAL OF ITS SUBSIDIARY, PT
SHIMANO BATAM RESULTING} ^{IN A TOTAL INVESTMENT OF US$2,425,000.}

BACKGROUND/OPERATION

^{THE
COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{28/05/1973
AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS} ^{PRESENT
NAMESTYLE AS "SHIMANO (SINGAPORE) PRIVATE LIMITED".}

^{AS
AT 09/10/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF} ^{39,375,000
SHARES OF A VALUE OF S$39,375,000.}

^{PRINCIPAL
ACTIVITIES:}

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

^{1)
MANUFACTURING AND ASSEMBLY OF BICYCLES, TRICYCLES, TRISHAWS AND} ^{INVALID
CARRIAGES; MANUFACTURING OF BICYCLE COMPONENTS & FISHING} ^REELS
ETC

^{2)
DIE-CASTING; DIE CASING HEAT TREATMENT & ELECTRO-PLATING SERVICES}

^{DURING
THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL} ^{ACTIVITIES
ARE THE MANUFACTURE AND SALE OF BICYCLE PARTS, MULTI-SPEED} ^{GEARS,
FISHING REELS AND RODS.}

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

^{SUBJECT
ENGAGES IN THE FOLLOWING ACTIVITYIES:}

^{*
MANUFACTURER OF BICYCLE COMPONENT SUCH AS, F&R DERAILLEUR, MULTIPLE} ^{FREEWHEEL,
SHIFTING LEVER, HUBS, BRAKES, ETC.}

^{*
MANUFACTURER OF FISHING TACKLES}

^{REGIONS/COUNTRIES
WITH BUSINESS DEALINGS:}

^{*
ASIA REGION}

^{*
COUNTRIES SUCH AS CHINA, INDONESIA, JAPAN ETC}

^{LOCAL
COMPANIES WITH BUSINESS DEALINGS:}

^{*
NAKANO METAL PRESS (S) PTE LTD}

^TRADE
NAME:

^*
SHIMANO

^{QUALITY
ASSESSMENT:}

^{*
ISO 14001}

^{*
ISO 9001}

^{SUBJECT
IS A MEMBER OF FOLLOWING ENTITIES:}

^{*
JAPANESE CHAMBER OF COMMERCE & INDUSTRY}

^{*
SINGAPORE CONFEDERATION OF INDUSTRIES}

^{*
SINGAPORE INDUSTRIAL AUTOMATION ASSOCIATION}

^{NO
OTHER TRADE INFORMATION WAS MADE AVAILABLE ON 11/10/2007.}

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

^{NUMBER
OF EMPLOYEES (30 NOVEMBER):}

^{*
COMPANY - 2006: NOT AVAILABLE (2005: 421; 2004: NOT AVAILABLE;}

^2003:
430)

^{REGISTERED
& BUSINESS ADDRESS:}

^{20
BENOI SECTOR}

^JURONG
TOWN

^{SINGAPORE
629852}

^{DATE
OF CHANGE OF ADDRESS: -}

^{--
OWNED PREMISE}

^{WEBSITE:
www.shimano.com}

^{EMAIL: tanwk@shimano.com.sg}

MANAGEMENT

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

^{1)
CHIAM YAU TENG, A SINGAPOREAN}

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

^{2)
FUMINORI YOSHIDA, A SINGAPORE PERMANENT RESIDENT}

^{-
HOLDS OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE}

^{SHIMANO
COMPONENTS (MALAYSIA) SDN BHD}

^{3)
SHINJI FUKUOKA, JAPANESE}

^{-
BASED IN JAPAN}

^{4)
YOSHIZO SHIMANO, A JAPANESE}

^{-
BASED IN JAPAN}

^{5)
YOZO SHIMANO, A JAPANESE}

^{-
BASED IN JAPAN}

^{6)
CHITOSHI YUGE, JAPANESE}

^{-
BASED IN SINGAPORE}

SINGAPORE’S COUNTRY RATING 2007

RATING: A1

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.

SERVICES SECTOR

PAST PERFORMANCE

THE OVERALL BUSINESS RECEIPTS FOR SERVICES INDUSTRIES IN 1Q 2007 ROSE BY 11.7% OVER THE SAME QUARTER IN 2006 BUT EXCLUDING FINANCIAL AND INSURANCE SERVICES, BUSINES RECEIPTS INCREASED BY 7%.

THE DOUBLE-DIGIT GROWTH IN OVERALL BUSINESS RECEIPTS WAS ATTRIBUTED TO POSITIVE GROWTH ACROSS ALL MAJOR SERVICES INDUSTRIES LIKE FINANCIAL & INSURANCE, REAL ESTATE & LEASING, IT SERVICES, HEALTHCARE AND BUSINESS SERVICES.

TURNOVER OF THE OVERALL IT SERVICES INDUSTRY CONTINUED TO GROW BY 10% IN 1Q 2007, AFTER RISING 14% IN THE PREVIOUS QUARTER. IN PARTICULAR, IT CONSULTANCY FIRMS REPORTED AN INCREASE ON 14.2% IN REVENUE DURING THE QUARTER.

RECEIPTS FROM INSURANCE SERVICES ROSE FURTHER BY 45.8% IN 1Q 2007 FOLLOWING A STRONG 53.1% INCREASE IN THE LAST QUARTER, LARGELY ATTRIBUTED TO BRISK BUSINESS REPORTED BY LIFE INSURANCE FIRMS.

IN 1Q 2007, FIRMS IN LEASING SERVICES REGISTERED AN INCREASE OF 3% IN REVENUE. FIRMS ENGAGED IN LEASING OF LAND TRANSPORT EQUIPMENT AND ENGINEERING MACHINERY AND EQUIPMENT REPORTED A RISE IN REVENUE.

BOOSTED BY POSITIVE GROWTH ACROSS ALL CATEGORIES WITHIN THE BUSINESS SERVICES INDUSTRY, THE OVERALL INDUSTRY'S TURNOVER WENT UP BY 9.6% INCREASE IN 1Q 2007.

IN PARTICULAR, LEGAL AND ACCOUNTING FIRMS AND ARCHITECTURAL, ENGINEERING AND TECHNICAL SERVICES REGISTERED 23.8% AND 21.5% INCREASE IN EARNINGS RESPECTIVELY.

THE EDUCATION SERVICES INDUSTRY EXPERIENCED A 3.2% RISE IN REVENUE IN 1Q 2007 AS COMPARED TO THE CORRESPONDING QUARTER IN 2006.

EARNINGS FROM THE HEALTHCARE SERVICES INDUSTRY MOVED UP BY 10.4% IN 1Q 2007, REPRESENTING THE FIFTH CONSECUTIVE QUARTER OF DOUBLE-DIGIT GROWTH SINCE 1Q 2006. HOSPITALS REGISTERED A GROWTH OF 6.4% WHILE CLINICS AND SPECIALISED MEDICAL SERVICES PROVIDERS RECORDED A 13.7% RISE IN REVENUE.

RECREATIONAL ACTIVITIES ALSO ROSE BY 3.3% IN 1Q 2007 AFTER EXPANDING BY 15.4% IN THE PREVIOUS QUARTER.

OUTLOOK

IN GENERAL, A NET WEIGHTED BALANCE OF 22% OF FIRMS IN THE SERVICES SECTOR PRODUCTS BETTER BUSINESS CONDITIONS FOR THE NEXT 6 MONTHS. THIS MAGNITUDE IS SMALLER THAN THE NET WEIGHTED BALANCE OF 25% REGISTERED IN THE SAME PERIOD OF PREVIOUS YEAR, BUT LARGER THAT THE NET WEIGHTED BALANCE OF 18% RECORDED FOR JAN-JUN 2007.

HOTELIERS PROJECT A FAVOURABLE BUSINESS OUTLOOK FOR THE NEXT 6 MONTHS, WHICH IS IN TANDEM WITH THE POSITIVE SENTIMENTS IN THE TOURISM MARKET. FOR THE CATERING TRADE INDUSTRY, BUSINESS OUTLOOK IN THE COMINGS MONTHS REMAINS THE SAME.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSES POSITIVE SENTIMENTS FOR THE NEXT 6 MONTHS. THESE INCLUDE FIRMS ENGAGED IN RENTING OF CONSTRUCTION & INDUSTRIAL MACHINERY, ARCHITECTURAL & ENGINEERING, SPECIALISED DESIGN AND LABOUR RECRUITMENT SERVICES.

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