MIRA INFORM REPORT

Report Date :

11.01.2008

IDENTIFICATION DETAILS

Name :	K LILARAM PTE LTD

Registered Office :	^{1 North Bridge Road} ^#19-02 ^{High Street Centre}

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	25.04.1980

Com. Reg. No.:	^198001389W

Legal Form :	Exempt Pte Ltd

Line of Business :	^{General Wholesale Trade}

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 :	Slow

Litigation :	Clear

Financial Elements

Sales : S$ 4,920,305

Networth : S$ 480,465

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

Net result : S$ 1,359,376

Net Margin(%) : 27.63

Return on Equity(%) : 282.63

Leverage Ratio : 5.63

COMPANY IDENTIFICATION

^{Subject
Company : K.LILARAM PTE LTD}

^{Former
Name : -}

^{Business
Address : 1 NORTH BRIDGE ROAD}

^#19-02

^{HIGH STREET CENTRE}

^{Town : SINGAPORE}

^{Postcode : 179094}

^{Country : Singapore}

^{Telephone : 6338 6864/63386097}

^{Fax : 6337 4659}

^{ROC
Number : 198001389W}

^{Reg. Town : -}

SUMMARY

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

^{Legal
Form :}^{Exempt Pte
Ltd}

^{Date Inc. :
25/04/1980}

^{Previous
Legal Form :
-}

^{Summary
year :
31/12/2006}

^{Sales :
4,920,305}

^{Networth :
480,465}

^{Capital :
1,000,000}

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

^{Employees :
-}

^{Net result :
1,359,376}

^{Share
value :
1}

^{Auditor :
KUEK BUCK HIONG & CO.}

^{BASED
ON ACRA'S}

^{NO.
OF SHARES CURRENCY AMOUNT}

^{ISSUED
ORDINARY 1,000,000 SGD 1,000,000}

^{PAID-UP
ORDINARY - SGD 1,000,000}

PRINCIPAL(S)

^{VASHDEV LACHMANDAS S2593238B Managing Director}

DIRECTOR(S)

^{VASHDEV LACHMANDAS S2593238B
Managing Director}

^{Appointed on :
04/03/1981}

^{Street : 9 AMBER ROAD}

^#12-01

^{PARKWAY MANSION}

^{Town: SINGAPORE}

^{Postcode: 439854}

^{Country: Singapore}

^{PRIYA VASHDEV S2594212D Director}

^{Appointed on :
10/10/1983}

^{Street : 9 AMBER ROAD}

^#12-01

^{PARKWAY MANSION}

^{Town :
SINGAPORE}

^{Postcode : 439854}

^{Country :
Singapore}

^{VASHDEV LACHMANDAS S2593238B Director}

^{Appointed on :
25/04/1980}

^{Street :
9 AMBER ROAD}

^#12-01

^{PARKWAY MANSION}

^{Town :
SINGAPORE}

^{Postcode :
439854}

^{Country :
Singapore}

FORMER DIRECTOR(S)

^{KOH SIEW GEK S0067002B}

^{MAHTANI PURSHOTAMDAS S/O THAROOMAL S2142260F}

^{NENUMAL VASWANI AKJAN XB699474}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{COMMISSION MERCHANTS Code:4990}

^{GARMENT ACCESSORIES And SUPPLIES Code:10037}

^{TEXTILE MERCHANTS Code:21450}

^{BASED ON ACRA'S RECORD}

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

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS
(EG COMMISSION AGENCIES)}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{VASHDEV LACHMANDAS 500,004
Private Person}

^{Street : 9 AMBER ROAD}

^#12-01

^{PARKWAY MANSION}

^{Town: SINGAPORE}

^{Postcode : 439854}

^{Country : Singapore}

^{PRIYA VASHDEV 499,996 Private Person}

^{Street : 9 AMBER ROAD}

^#12-01

^{PARKWAY MANSION}

^{Town :
SINGAPORE}

^{Postcode :
439854}

^{Country :
Singapore}

FORMER SHAREHOLDER(S)

^{MAHTANI
PURSHOTAMDAS S/O THAROOMAL}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality : AVERAGE}

^{Liquidity : LACKING}

^{Payments
: SLOW}

^{Trend
: LEVEL}

^{Financial
Situation:BAD}

FINANCIAL ELEMENTS

^{Audit Qualification: "MILD" UNCERTAINTIES GOING CONCERN QUALIF}

^{Date Account Lodged: 31/12/2006}

^{Balance Sheet Date: 31/12/2006 31/12/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS} ^---

^{Tangible Fixed Assets: 242 64}

^{Total Fixed Assets: 242 64}

^{Receivables: 3,183,618 4,168,545}

^{Cash,Banks, Securitis: 3,066 3,274}

^{Total Current Assets: 3,186,684 4,171,819}

^{TOTAL
ASSETS:
3,186,926
4,171,883}

^{--- LIABILITIES} ^---

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

  ^{Profit & lost
Account:
-519,535
-1,878,908}

^{Total
Equity:
480,465
-878,908}

^{Trade Creditors: 1,871,695 4,110,848}

^{Due to Bank:
330,050}

^{Provisions: 70,100 150,363}

^{Other Short term Liab.: 760,340 429,544}

^{Prepay. & Def. charges: 4,326 29,986}

^{Total
short term Liab.:
2,706,461 5,050,791}

^{TOTAL
LIABILITIES:
2,706,461
5,050,791}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 4,920,305 6,754,746}

^{Purchases,Sces & Other Goods: 4,600,618 6,310,882}

^{Gross Profit: 319,687 443,864}

^{Result of ordinary operations 1,497,546 227,143}

^{NET RESULT BEFORE TAX: 1,369,475 113,520}

^{Tax :
10,099
8,763}

^{Net income/loss year: 1,359,376 104,757}

^{Interest Paid: 128,071 113,623}

^{Depreciation: 31 340}

^{Directors Emoluments: 91,812 173,400}

^{Wages and Salaries: 34,463 34,450}

RATIOS

^{31/12/2006 31/12/2005}

^{Net result /
Turnover(%): 0.28 0.02}

^{Fin. Charges /
Turnover(%):0.03
0.02}

^{Net Margin(%): 27.63 1.55}

^{Return on Equity(%): 282.93 -11.92}

^{Return on Assets(%): 42.65 2.51}

^{Net Working capital: 480223.00 -878972.00}

^{Cash Ratio: 0.00 0.00}

^{Quick Ratio: 1.18 0.83}

^{Current ratio: 1.18 0.83}

^{Receivables Turnover: 232.93 222.17}

^{Leverage Ratio: 5.63 -5.75}

^{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

^{AUDITORS' REPORT:}

^{EMPHASIS OF MATTER}

^{WE NOTED THAT
S$978,245 INCLUDED UNDER TRADE RECEIVABLES APPEAR TO BE} ^SLOW ^{MOVING
DEBTS AND ARE ALSO FOREIGN DEBTORS. THESE ARE ALREADY AN} ^{ALLOWANCE
FOR DOUBTFUL DEBTS OF S$667,095 THE DIRECTORS ARE OF} ^{THE OPINION
THAT NO FURTHER ALLOWANCE ARE REQUIRED. WE ARE UNABLE TO} ^{SATISTY
OURSELVES AS TO THE VALIDITY OF THE DIRECTORS' OPINION ON THE} ^{AMOUNT
OF ALLOWANCE REQUIRED. THE FINANCIAL STATEMENTS DO NOT INCLUDE} ^{ANY
ADJUSTMENT, WHICH MAY ARISE FROM THIS UNCERTAINTY. IN FORMING OUR}

^{OPINION, WE HAVE
CONSIDERED THE ADEQUACY OF THE DISCLOSURE OF THIS} ^{MATTER IN
THE FINANCIAL STATEMENTS.}

^{THE
FINANCIAL CONDITION OF THE COMPANY WAS DEEMED TO BE LIMITED IN} ^{VIEW OF THE
FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET
WAS CONSIDERED PASSABLE WITH AN IMPROVEMENT IN NET} ^{WORTH TO} ^{S$480,465 (2005: -S$878,908). THIS WAS ATTRIBUTED TO SMALLER RETAINED} ^{LOSSES BROUGHT FORWARD OF S$519,535 (2005: -S$1,878,908) LOWERING} ^{BY
1.55 TIMES.}

^LEVERAGE:

^{IN THE SHORT-TERM,
SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS} ^{WHICH MADE
UP 69.16% (2005: 81.39%) OF THE TOTAL CURRENT LIABILITIES} ^{AND
AMOUNTED TO S$1,871,695 (2005: S$4,110,848).}

^{AMOUNT
DUE TO BANKS COMPRISES OF:}

^{*BANK
OVERDRAFTS - 2006: NIL (2005: S$105,177)}

^{*TERM
LOANS - 2006: NIL (2005: S$224,873)}

^{IN
ALL, LEVERAGE RATIO IMPROVED FROM -5.75 TIMES TO -5.63 TIMES AS A} ^RESULT ^{OF A DROP IN TOTAL LIABILITIES AND A RISE IN TOTAL EQUITY.}

^{NOTE: LEVERAGE
RATIO IN FY 2006 SHOULD BE -5.63 INSTEAD OF 5.63 AS} ^{SHOWN IN THE
SYSTEM IF YOU CONSIDERED THE CHANGE IN TOTAL LIABILITIES} ^{AND TOTAL
EQUITY BETWEEN FY 2005 AND FY 2006.}

^LIQUIDITY:

^{THE LIQUIDITY
STATUS OF THE COMPANY WAS IMPROVING AS SHOWN IN THE} ^{CHANGES IN
NET WORKING CAPITAL AND LIQUIDITY RATIOS. NET WORKING} ^{CAPITAL
IMPORVED BY 1.55 TIMES, MOVING FROM A DEFICIT POSITION OF S} ^{$878,972
IN FY 2005 TO A SURPLUS OF S$480,223.}

^{BOTH CURRENT AND
QUICK RATIOS INCREASED TO 1.18 TIMES (2005: 0.83}

^TIMES).

^{PROFITABILITY:}

^{REVENUE FOR FY
2006 DECLINED BY 27.16%, AMOUNTING TO S$4,920,305} ^{(2005:
S$6,754,746). HOWEVER, NET INCOME SURGED BY 11.98 TIMES,} ^{TOTALLING
S$1,359,376 (2005: S$104,757). THIS IS MAINLY CAUSED BY THE} ^{IMPROVEMENT
IN OTHER OPERATING INCOME BY 32.97 TIMES FROM S$39,827 IN} ^{FY 2005 TO
S$1,352,807. THE BREAKDOWN FOR OTHER OPERATING INCOME}

^{COMPRISED OF:}

^{*ALLOWANCE
FOR DOUBTFUL DEBTS WRITTEN BACK - 2006: S$1,281,600 (2005:}

^NIL)

^{*REVENUE
GAIN ON FOREIGN EXCHANGE - 2006: S$71,207 (2005: S$37,358).}

^{AS
A RESULT, NET MARGIN STOOD HIGHER AT 27.63% (2005: 1.55%).}

^{DEBT SERVICING:}

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

^{THE AVERAGE
COLLECTION PERIOD HAS LENGTHENED TO 233 DAYS (2005: 222} ^{DAYS). THIS
MIGHT SUGGEST THAT THE SUBJECT IS STILL VERY WEAK IN ITS} ^{COLLECTION
EFFORT.}

^{NOTES
TO FINANCIAL STATEMENTS:}

^*TERM
LOAN

^{TERM
LOAN DUE WITHIN A YEAR - 2006: NIL (2005: S$224,873).}

^{THESE
TERM LOANS COMPRISE THE FOLLOWING:}

^{(A)
A DEMAND LOAN BEING REPAID BY MONTHLY INSTALEMTS AT VARIABLE} ^{INTEREST
RATES OF AROUND 5%; AND}

^{(B)
A CLEAN TERM LOAN CONVERTED FROM BANK FACILITIES REPAYABLE OVER} ^{30 MONTHLY
INSTALMENTS AT VARIABLE INTEREST RATES OF AROUND 8.5%.}

^{*BANK
OVERDRAFT}

^{THE
BANK OVERDRAFTS AND OTHER FACILITIES WERE SECURED BY:}

^{(A)
LEGAL MORTAGE OF PROPERTIES BELONGING TO THE DIRECTORS;}

^{(B)
PERSONAL GUARANTEE OF THE DIRECTORS;}

^{INTEREST
RATE WAS AT 7.25%.}

^{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} ^{25/04/1980
AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER} ^{ITS PRESENT
NAMESTYLE AS "K.LILARAM PTE LTD".}

^{THE
COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF} ^{1,000,000 SHARES
OF A VALUE OF S$1,000,000.}

^{PRINCIPAL
ACTIVITIES:}

^{SUBJECT
IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY}

^{AUTHORITY
(ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

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

^{2)
WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

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

^{DURING
THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL} ^{ACTIVITIES
ARE THOSE OF IMPORTERS AND EXPORTERS OF ELECTRONIC GOODS.TEXTILES, READY-MADE
GARMENTS AND COMMISSION AGENTS.}

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

^{IMPORT
COUNTRIES:}

^*
INDONESIA

^*
CHINA

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

^{*
SINGAPORE BUSINESS FEDERATION}

^{TERMS
OF PAYMENT:}

^{*
TRADE DEBTORS : 150 DAYS TERM}

^{*
TRADE CREDITORS: 150 DAYS TERM}

^{FROM
THE TELE-INTERVIEW CONDUCTED THE FOLLOWING WAS}

^GATHERED:

^{SUBJECT
ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{*
IMPORT AND EXPORT}

^{*
TRADING OF TEXTILES AND GARMENTS}

^{SUBJECT
DOES NOT SUPPLY TO THE LOCAL SINGAPORE MARKET.}

^{NO
OTHER TRADE INFORMATION WAS AVAILABLE}

^{REGISTERED
AND BUSINESS ADDRESS:}

^{1
NORTH BRIDGE ROAD}

^#19-02

^{HIGH
STREET CENTRE}

^{SINGAPORE
179094}

^{DATE
OF CHANGE OF ADDRESS: 01/03/1993}

^{-
RENTED PREMISE}

^{-
PREMISE OWNED BY: PRIYA VASHDEV (DIRECTOR)}

^-
OFFICE

^WEBSITE:

^EMAIL:

MANAGEMENT

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

^{1)
VASHDEV LACHMANDAS, A SINGAPORE PERMANENT RESIDENT}

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

^{2)
PRIYA VASHDEV, A SINGAPORE PERMANENT RESIDENT}

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

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.

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