MIRA INFORM REPORT

Report Date :

04.07.2008

IDENTIFICATION DETAILS

Name :	FARLIN TIMBERS PTE LTD
Formerly Known As :	^VIRGIN WOOD PRODUCTS PTE LTD
Registered Office :	^435 Orchard Road ^#21-01 ^Wisma Atria ^238877
Country :	Singapore
Financials (as on) :	30.06.2004
Date of Incorporation :	^03.08.1994
Com. Reg. No.:	^199405441Z
Legal Form :	^Exempt Pte Ltd
Line of Business :	^Wholesale of Agricultural Raw Material, Live Animals, Food, Beverages and Tobacco.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Unknown
Litigation :	Clear

Subject Company

FARLIN TIMBERS PTE LTD

Line Of Business 

^{WHOLESALE OF AGRICULTURAL RAW MATERIAL, LIVE ANIMALS, FOOD, BEVERAGES AND TOBACCO.}

Parent Company

N/A

Financial Elements

FY 2004

COMPANY

Sales : S$277,294,746

Networth : S$14,116,955

Paid-Up Capital : S$10,000,000

Net result : S$ 1,732,898

Net Margin(%) : 0.62

Return on Equity(%) : 12.28

Leverage Ratio : 2.98

COMPANY IDENTIFICATION

^{Subject Company : FARLIN TIMBERS PTE LTD}

^{Former Name : VIRGIN WOOD PRODUCTS PTE LTD}

^{Business Address: : 435 ORCHARD ROAD}

^#21-01

^{WISMA ATRIA}

^{Town : SINGAPORE}

^{Postcode : 238877}

^{County :}

^{Country : Singapore}

^{Telephone : 6398 1188}

^{Fax : 6398 1177}

^{ROC Number : 199405441Z}

^{Reg. Town :}

PREVIOUS IDENTIFICATION

^{VIRGIN WOOD PRODUCTS PTE LTD DATE OF CHANGE OF NAME: 02/10/1997 FARLI}

SUMMARY

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

^{Legal Form : Exempt Pte Ltd}

^{Date Inc. : 03/08/1994}

^{Previous Legal Form : Pte Ltd}

^{Summary year : 30/06/2004}

^{Sales : 277,294,746}

^{Networth : 14,116,955}

^{Capital : 50,000,000}

^{Paid-Up Capital : 10,000,000}

^{Employees : 12}

^{Net result : 1,732,898}

^{Share value : -}

^{Auditor : J K MEDORA & CO}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 47,920,826 SGD 47,920,826.00}

^{PAID-UP ORDINARY - SGD 47,920,826.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 03/08/1994}

PRINCIPAL(S)

^{MOHAMMED FAROUK S2715761J Director}

DIRECTOR(S)

^{PEH POH CHIN S6840069D Company Secretary}

^{Appointed on : 31/08/2003}

^{Street : 22 MALACCA STREET}

^#08-02

^{ROYAL BROTHERS BUILDING}

^{Town: SINGAPORE}

^{Postcode: 048980}

^{Country: Singapore}

^{SEET BENG CHOO JEANNE S1234059A Company Secretary}

^{Appointed on : 31/08/2003}

^{Street : 529 HOUGANG AVENUE 6}

^#07-263

^{Town: SINGAPORE}

^{Postcode: 530529}

^{Country: Singapore}

^{MOHAMMED FAROUK S2715761J Director}

^{Appointed on : 03/08/1994}

^{Street : 95 GRANGE ROAD}

^#17-11

^{GRANGE RESIDENCES}

^{Town: SINGAPORE}

^{Postcode: 249616}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{WONG LAI LENG S1176982I}

^{KOH NGIN JOO JULIE S2586980Z}

^{PEH POH CHIN S6840069D}

ACTIVITY(IES)

^{TRADING COMPANIES Code:22190}

^{TIMBER - WHSLE Code:21690}

^{COMMISSION MERCHANTS Code:4990}

^{ENGINEERING CONSULTANCY SERVICES Code:7865}

^{BASED ON ACRA'S RECORD}

^{1) ENGINEERING ACTIVITIES; WHOLESALE TRADE}

^{2) WHOLESALE OF AGRICULTURAL RAW MATERIAL, LIVE ANIMALS, FOOD,}

CHARGES

^{Date: 28/10/2004}

^{Comments : CHARGE NO: C200405343}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): BNP PARIBAS}

^{Date: 28/06/2007}

^{Comments : CHARGE NO: C200704919}

^{CHARGEE: INDIAN OVERSEAS BANK}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWNING}

^{Date: 22/06/2007}

^{Comments : CHARGE NO: C200704694}

^{CHARGEE: BANK OF BARODA}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWNING}

^{Date: 30/05/2007}

^{Comments : CHARGE NO: C200704107}

^{CHARGEE: UCO BANK}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWNING}

^{Date: 29/06/2004}

^{Comments : CHARGENO: C200403104}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: KBC BANK N.V}

^{Date: 06/04/2004}

^{Comments : CHARGE NO: C200401744}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: SCOIETE GENERALE}

^{Date: 06/04/2004}

^{Comments : CHARGE NO: C200401743}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: SOCIETE GENERALE}

^{Date: 17/03/2004}

^{Comments : CHARGE NO: C200401264}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: INDIAN BANK}

^{Date: 21/10/2003}

^{Comments : CHARGE NO: C200304968 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: MOSCOW NARODNY BANK LTD}

^{Date: 12/08/2003}

^{Comments : CHARGE NO: C200303838 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: DBS BANK LTD}

^{Date: 25/06/1999}

^{Comments : CHARGE NO: 199902396 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: MEEPIERSON N.V.}

^{Date: 19/02/2002}

^{Comments : CHARGE NO: 200200829}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE (S): ABN AMRO BANK N.V.}

^{Date: 16/02/2001}

^{Comments : CHARGE NO: 200100775 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE (S): FLEET NATIONAL PARK}

^{Date: 06/03/2003}

^{Comments : CHARGE NO: C200301008}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: KBC BANK N.V.}

^{Date: 04/06/2003}

^{Comments : CHARGE NO: C200302591 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{ABN AMRO BANK NV}

^{KBC BANK N.V.}

^{RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT}

^{UCO BANK}

^{DBS BANK LTD.}

^{BNP PARIBAS}

^{BANK OF BARODA}

^{INDIAN OVERSEAS BANK}

SHAREHOLDERS(S)

^{MOHAMMED FAROUK 47,920,826 Private Person}

^{Street : 95 GRANGE ROAD}

^#17-11

^{GRANGE RESIDENCES}

^{Town: SINGAPORE}

^{Postcode: 249616}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{KOH NGIN JOO JULIE 1}

^{MOHAMMED FARROKH 99,999}

^{SOUTAHVEN INTERNATIONAL LIMITED 3,400,000}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : UNKNOWN}

^{Payments : UNKNOWN}

^{Trend : UNKNOWN}

^{Financial Situation : UNKNOWN}

FINANCIAL ELEMENTS

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

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

^{Balance Sheet Date: 30/06/2004 30/06/2003}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp Tangible Fixed Assets: 220,291 16,017}

^{Total Fixed Assets: 220,291 16,017}

^{Inventories: 27,835,393 7,674,292}

^{Receivables: 4,917,998 6,385,539}

^{Cash,Banks, Securitis: 11,557,155 8,321,164}

^{Other current assets: 11,609,036 8,435,439}

^{Total Current Assets: 55,919,582 30,816,434}

^{TOTAL ASSETS: 56,139,873 30,832,451}

^{--- LIABILITIES ---}

^{Equity capital: 10,000,000 10,000,000}

^{Profit & lost Account: 4,116,955 2,384,057}

^{Total Equity: 14,116,955 12,384,057}

^{L/T deffered taxes: 800 2,400}

^{Total L/T Liabilities: 800 2,400}

^{Trade Creditors: 17,136,035 1,816,897}

^{Prepay. & Def. charges: 95,120 21,840}

^{Due to Bank: 22,714,399 16,046,870}

^{Provisions: 455,895 218,231}

^{Other Short term Liab.: 1,620,669 342,156}

^{Total short term Liab.: 42,022,118 18,445,994}

^{TOTAL LIABILITIES: 42,022,918 18,448,394}

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

^{Net Sales 277,294,746 157,908,847 Gross Profit: 4,888,171 3,378,968 Result of ordinary operations 1,962,533 1,035,590 NET RESULT BEFORE TAX: 2,181,298 1,085,808 Tax : 448,400 227,800 Net income/loss year: 1,732,898 858,008 Interest Paid: 1,670,578 1,897,031 Depreciation: 126,162 88,191 Directors Emoluments: 379,350 168,000 Wages and Salaries: 667,909 616,693 Financial Income: 81,565 30,674}

RATIOS

^{30/06/2004 30/06/2003 Turnover per employee: 23107895.50 13159070.58 Net result / Turnover(%): 0.01 0.01 Fin. Charges / Turnover(%): 0.01 0.01 Stock / Turnover(%): 0.10 0.05 Net Margin(%): 0.62 0.54 Return on Equity(%): 12.28 6.93 Return on Assets(%): 3.09 2.78 Net Working capital: 13897464.00 12370440.00 Cash Ratio: 0.28 0.45 Quick Ratio: 0.39 0.80 Current ratio: 1.33 1.67 Receivables Turnover: 6.38 14.56 Leverage Ratio: 2.98 1.49}

^{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 ITS LOCAL DIRECTORS ARE 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 COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 03/08/1994 AS A LIMITED PRIVATE COMPANY AND WAS FORMERLY KNOWN AS "FARLIN TIMBERS PTE LTD".}

^{ON 01/12/1995, SUBJECT CHANGED ITS NAMESTYLE TO "VIRGIN WOOD PRODUCTS PTE LTD".}

^{SUBSEQUENTLY ON 02/10/1997, SUBJECT AGAIN CHANGED TO ITS PRESENT NAMESTYLE OF "FARLIN TIMBERS PTE LTD" AND IS TRADING AS A LIMITED EXEMPT PRIVATE COMPANY.}

^{SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 47,920,826 SHARES OF A VALUE OF S$47,920,826.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{1) ENGINEERING ACTIVITIES; WHOLESALE TRADE}

^{2) WHOLESALE OF AGRICULTURAL RAW MATERIAL, LIVE ANIMALS, FOOD,}

^{BEVERAGES AND TOBACCO; TIMBER WHOLESALING}

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

^{SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: TIMBER EXPORTERS & IMPORTERS.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:}

^{* TRADING IN HARD WOODS AND TEAK LOGS}

^{IMPORT COUNTRIES:}

^{WEST AFRICA:}

^{* GABON}

^{* GHANA}

^{* IVORY COAST}

^{* NIGERIA}

^{* CAMEROON}

^{* SOUTH AMERICA}

^{* VENEZUELA}

^{* ECUADOR}

^{* PANAMA}

^{* GUYANA}

^{SOUTH EAST ASIA:}

^{* MALAYSIA}

^{* MYANMAR}

^{* NEW ZEALAND}

^{* PAPUA NEW GUINEA}

^{EXPORT COUNTRIES:}

^{* INDIA}

^{* CHINA}

^{* BANGLADESH}

^{* VIETNAM}

^{* MIDDLE EAST}

^{SOME OF SUBJECT'S CLIENTS:}

^{* PRABHAT GROUP}

^{* ETC}

^{TERMS OF PAYMENT:}

^{* CUSTOMERS: LETTERS OF CREDIT, DOCUMENTS AGAINST PAYMENT}

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

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^AWARDS:

^{* TOP ENTERPRISE 50 COMPANY AWARD 2006 (RANKED NUMBER 9)}

^{* TOP ENTERPRISE 50 COMPANY AWARD 2005 (RANKED NUMBER 11)}

^{* SINGAPORE 1000 COMPANY AWARD 2005 (RANKED NUMBER 59)}

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

^{NUMBER OF EMPLOYEES (30 JUNE):}

^{* COMPANY - 2007: 11 (2006 NOT AVAILABLE (2005: NOT AVAILABLE;}

^{2004: 12; 2003: 12; 2002: 12)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{435 ORCHARD ROAD}

^#21-01

^{WISMA ATRIA}

^{SINGAPORE 238877}

^{DATE OF CHANGE OF ADDRESS: 25/10/2004}

^{- RENTED PREMISE}

^{- OWNED BY: HSBC INSTITUTIONAL TRUST SERVICES (S) LTD AS TRUSTEE OF}

^{MACQUARIE MEAG PRIME REIT}

^{WEBSITE: http://www.farlingroup.com}

^{EMAIL : farlintimbers@farlingroup.com}

MANAGEMENT

^{THE DIRECTOR AT THE TIME OF THE REPORT IS:}

^{1) MOHAMMED FAROUK, A SINGAPORE PERMANENT RESIDENT}

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

^{VIRGIN TIMBERS PTE LTD}

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME: MOHAMMED FAROUK}

^{ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: OWNS 1}

^{ANNUAL VALUE: S$126,000}

^{CO-OWNER: 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 6.0% IN 4Q 2007, SLOWER THAN THE 6.8% GROWTH IN 3Q 2007. RETAIL SALES FELL BY 2.5%, FOLLOWING A 1.5% GROWTH IN 3Q 2007.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 22.2% IN 4Q 2007 OVER 4Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 4.8%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF PETROLEUM AND PETROLEUM PRODUCTS (47.3%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (29.8%). OTHER WHOLESALE SEGMENTS THAT REPORTED DOUBLE-DIGIT GROWTH WERE WHOLESALING OF GENERAL WHOLESALE TRADE, HOUSEHOLD EQUIPMENT AND FURNITURE AND CHEMICALS AND CHEMICAL PRODUCTS.

ON THE OTHER HAND, WHOLESALE SEGMENT THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-35.8%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 1.6% IN 4Q 2007 OVER 4Q 2006. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE SLIGHTLY BY 0.2%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 4Q 2007 ROSE BY 7.1% OVER 3Q 2007. EXCLUDING PETROLEUM, DOMESTIC SALES CONTRACTED BY 2.9%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 4Q 2007 OVER PREVIOUS QUARTER. PETROLEUM AND PETROLEUM PRODUCTS EXPANDED BY 20.0%. GENERAL WHOLESALE TRADE AND INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO REGISTERED

DOUBLE-DIGIT GROWTH OVER PREVIOUS QUARTER.

ON THE OTHER HAND, SALES OF FOOD, BEVERAGES AND TOBACCO AND ELECTRONIC COMPONENTS FELL IN 4Q 2007 OVER 3Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 4Q 2007 ROSE BY 27.0%, IN COMPARISON TO 4Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 15.3%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (40.6%) PETROLEUM AND PETROLEUM PRODUCTS (39.9%) SHIP CHANDLERS AND BUNKERING (24.3%) INDUSTRIAL AND CONSTRUCTION MACHINERY (18.2%) CHEMICALS AND CHEMICAL PRODUCTS (16.4%) ELECTRONIC COMPONENTS (12.1%) TIMBER, PAINT AND CONSTRUCTION MATERIALS (11.1%).

ON THE OTHER HAND, OVERSEAS SALES OF TELECOMMUNICATIONS AND COMPUTERS FELL BY 2.8%

IN 4Q 2007 OVER 4Q 2006.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 11.5% IN 4Q 2007 OVER 4Q 2006.

EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 15.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 4Q 2007 ROSE BY 11.7% OVER 3Q 2007. EXCLUDING PETROLEUM, IT GREW BY 6.0%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 4Q 2007 WITH THE EXCEPTION OF THE ELECTRONIC COMPONENTS SECTOR. THOSE SECTORS THAT REGISTERED DOUBLE-DIGIT GROWTH WERE WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS, TELECOMMUNICATIONS AND COMPUTERS, INDUSTRIAL AND CONSTRUCTION MACHINERY AND CHEMICALS AND CHEMICAL PRODUCTS.

RETAIL TRADE

THE OVERALL RETAIL SALES CONTRACTED BY 2.5%, IN CONTRAST TO THE 1.5% GROWTH IN 3Q 2007. THE SECTOR THAT RECORDED THE LARGEST DECLINE WERE MOTOR VEHICLES, FOLLOWED BY PROVISION AND SUNDRY SHOPS, FOOD AND BEVERAGES, WATCHES AND JEWELLERY AND MEDICAL GOODS AND TOILETRIES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.2%, A DECLINE FROM THE 6.O% GROWTH IN 3Q 2007.

NEWS

SURPRISING DROP IN RETAIL SALES

RETAIL SALES FELL UNEXPECTEDLY IN FEBRUARY, THE FIRST TIME IN SEVEN MONTHS, AS INFLATION HIT 26 YEAR HIGHS AND WORRIES GREW ABOUT THE WORLD ECONOMY. SHOPS, SUPERMARKETS AND OTHER RETAILERS SAW REVENUES FELL 1.3% FROM A YEAR EARLIER, AS CAR SALES DECLINED 10.6% AND FOOD AND BEVERAGES SALES PLUNGED 21.8%.

THE OVERALL CONTRACTION BY THE SECTOR WOULD HAVE BEEN BIGGER IF NOT FOR MUCH HIGHER PRICES THIS YEAR. IN CONSTANT PRICES TERMS, SALES FELL 5.7%. THIS IS THE WORST READING SINCE THE 5.0% DECLINE IN MARCH 2007, IF ONE WERE TO IGNORE THE 2.0% CONTRACTION IN JULY THAT WAS DUE TO THE HIKE IN THE GOODS AND SERVICES TAX,” SAID HSBC ECONOMIST PRAKRITI SOFAT.

ANALYSTS SAID RISING LIVING COSTS AND UNCERTAINTY ABOUT THE ECONOMY WOULD AFFECT SINGAPORE CONSUMER’S SPENDING THIS YEAR. MANY, HOWEVER, REMAIN LARGELY OPTIMISTIC ABOUT THE DOMESTIC RETAIL SCENE, SAYING THE POOR FEBRUARY SHOWING COULD BE A STATISTICAL BLIP.

DOMESTIC DEMAND CONDITIONS REMAIN POSITIVE, HELPED BY THE GOVERNMENT WHICH IS GIVING CASH FROM LAST YEAR’S SURPLUS TO THE WHOLE POPULATION AND ISSUING FOOD VOUCHERS TO THE POOR. “LOW INTEREST RATES AND A HEALHY JOBS MARKET SHOULD KEEP SPENDING FIRM,” SAID HSBC’S MS SOFAT. SHE ADDED THAT FEBRUARY’S DECLINE WAS DUE LARGELY TO A HIGH BASE SET THE PREVIOUS YEAR AND PREDICTED THAT MARCH SALES WOULD BOUNCE BACK WITH A 15.0% SURGE. ALSO, IF COMPARED WITH JANUARY, FEBRUARY SALES ROSE 8.8% AFTER ADJUSTING FOR SEASONAL EFFECTS. THIS WAS THE STRONGEST PERFORMANCE IN FOUR YEARS, SHE SAID.

CIMB-GK ECONOMIST SONG SENG WUN SAID MUCH OF THE POOR PERFORMANCE CAME ON THE BACK OF WEAKER CAR SALES. EXCLUDING THOSE, RETAIL SALES WOULD HAVE RISEN 2.9%. CAR SALES HAVE BEEN HURT SINCE OCTOBER BY RISING CERTIFICATE OF ENTITLEMENT PRICES, CAUSED BY AN EXPECTED CUT IN QUOTAS FROM NEXT MONTH AND SURGING PUMP PRICES.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 4% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THE MAJORITY OF WHOLESALERS OF PETROLEUM AND PETROLEUM PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS, INDUSTRIAL MACHINERY AND EQUIPMENT AND COMPUTERS AND ACCESSORIES FORECAST BUSINESS OUTLOOK TO REMAIN THE SAME IN THE FIRST SIX MONTHS OF 2008 COMPARED WITH THE LAST SIX MONTHS IN 2007.

A NET WEIGHTED BALANCE OF 12% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING JUNE 2008. 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.43.21
UK Pound	1	Rs.85.72
Euro	1	Rs.67.92

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%)

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