MIRA INFORM REPORT

Report Date :

28.07.2008

IDENTIFICATION DETAILS

Name :	SEA AND LAND TECHNOLOGIES PTE LTD
Registered Office :	^65 Tuas Avenue 639508
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^01.11.1994
Com. Reg. No.:	^199407967R
Legal Form :	^Pte Ltd
Line of Business :	Sale and Rental of High Technology Electronic and Mechanical Equipment and related Support Services

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 :	Regular
Litigation :	Exists

Subject Company

SEA AND LAND TECHNOLOGIES PTE LTD

Line Of Business 

SALE AND RENTAL OF HIGH TECHNOLOGY ELECTRONIC AND MECHANICAL

EQUIPMENT AND RELATED SUPPORT SERVICES

Parent Company

-

Financial Elements

FY 2006

COMPANY

Sales : S$ 12,646,920

Networth : S$ 1,862,101

Paid-Up Capital : S$ 704,543

Net result S$ 516,534

Net Margin(%) : 4.08

Return on Equity(%) : 27.74

Leverage Ratio : 3.71

COMPANY IDENTIFICATION

^{Subject Company : SEA AND LAND TECHNOLOGIES PTE LTD}

^{Former Name : -}

^{Business Address : 65 TUAS AVENUE 1}

^{Town : SINGAPORE}

^{Postcode : 639508}

^{Country : Singapore}

^{Telephone : 6518 0777}

^{Fax : 6563 0366}

^{ROC Number : 199407967R}

^{Reg. Town : -}

SUMMARY

^{All amounts in this report are in : SGD unless otherwise stated}

^{Legal Form : Pte Ltd}

^{Date Inc. : 01/11/1994}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 12,646,920}

^{Networth : 1,862,101}

^{Capital : -}

^{Paid-Up Capital : 704,543}

^{Employees : -}

^{Net result : 516,534}

^{Share value : -}

^{Auditor : K C YIN & CO}

^{BASED ON ACRA'S RECORD}

^{NO.OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 598,081 SGD 794,243.00}

^{PAID-UP ORDINARY - SGD 794,243.00}

REFERENCES

^{Litigation : YES}

^{Company status : TRADING}

^{Started : 01/11/1994}

PRINCIPAL(S)

^{SHEELA D/O YATHEENDRAN S1475351F Director}

DIRECTOR(S)

^{SHEELA D/O YATHEENDRAN S1475351F Director}

^{Appointed on : 01/11/1994}

^{Street : 316 SHUNFU ROAD}

^#01-108

^{SHUNFU VILLE}

^{Town: SINGAPORE}

^{Postcode: 570316}

^{Country: Singapore}

^{ELIZABETH THOMAS S1572839F Director}

^{Appointed on : 27/12/1994}

^{Street : 358 YISHUN RING ROAD}

^#01-1680

^{Town: SINGAPORE}

^{Postcode: 760358}

^{Country: Singapore}

^{KATHLEEN SOH LIN TUAN S1284881A Company Secretary}

^{Appointed on : 01/04/2005}

^{Street : 244 BISHAN STREET 22}

^#03-290

^{Town: SINGAPORE}

^{Postcode: 570244}

^{Country: Singapore}

^{HIMANSHU GANDHI Z1265013 Director}

^{Appointed on : 18/09/1995}

^{Street : P.O. BOX 53148}

^{Town: DUBAI}

^Postcode:

^{Country: United Arab Emirates}

FORMER DIRECTOR(S)

^{ONG INN HOON JUDY S1485093G}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code: 11760}

^{MARINE ELECTRONIC EQUIPMENT And SUPPLIES Code: 13420}

^{BASED ON ACRA'S RECORD}

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

CHARGES

^{Date: 23/08/2001}

^{Comments : CHARGE NO : 200104031}

^{CHARGEE(S) : THE DEVELOPMENT BANK OF SINGAPORE LIMITED}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{Date: 17/03/2000}

^{Comments : CHARGE NO : 200001241}

^{CHARGEE(S) : THE DEVELOPMENT BANK OF SINGAPORE LTD}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{Date: 21/11/2007}

^{Comments : CHARGE NO : C200710233}

^{CHARGEE(S) : DBS BANK}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

PREMISES/PROPERTY INFORMATIONS

^{Date : 26/11/2007}

^{Tax rate : 10}

^{Site Address : 65 TUAS AVENUE 1}

^{Postcode : 639508}

^{Country : Singapore}

^{Annual Value : 100,000}

* TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

* TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER/OWNED BY COMPANY.

* FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

* 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.

BANKERS

^{THE DEVELOPMENT BANK OF SINGAPORE LIMITED}

SHAREHOLDERS(S)

^{SHEELA D/O YATHEENDRAN 344,999 Private Person}

^{Street : 316 SHUNFU ROAD}

^#01-108

^{SHUNFU VILLE}

^{Town: SINGAPORE}

^{Postcode: 570316}

^{Country: Singapore}

^{ELIZABETH THOMAS 1 Private Person}

^{Street : 358 YISHUN RING ROAD}

^#01-1680

^{Town: SINGAPORE}

^{Postcode: 760358}

^{Country: Singapore}

^{MAHAMAD BIN MOHAMED 30,000 Private Person}

^{Street : 158 SIMEI ROAD}

^#02-240

^{Town: SINGAPORE}

^{Postcode: 520158}

^{Country: Singapore}

^{UNIQUE MARITIME GROUP FZC 193,181 Company}

^{Street : P O BOX 20904}

^{Town: SHARJAH}

^Postcode:

^{Country: United Arab Emirates}

^{FLOYD NG BENG ANN 29,900 Private Person}

^{Street : 3 TOH TUCK GARDEN}

^#03-01

^{TOH TUCK GARDEN}

^{Town: SINGAPORE}

^{Postcode: 596859}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{CHAN YOKE HENG IRENE 1}

^{HIMANSHU GANDHI 193,181}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

LITIGATION(S)

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

^{Case Number: MCS09637/1997}

Defendant SEA AND LAND TECHNOLOGIES PTE LTD ROC # : 199407967R

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

^{Case Number: MCS23647/1998}

Defendant SEA AND LAND TECHNOLOGIES PTE LTD ROC # : 199407967R

FINANCIAL ELEMENTS

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

^{Date Account Lodged: 14/09/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 3,584,770 2,992,878}

^{Total Fixed Assets: 3,584,770 2,992,878}

^{Inventories: 1,284,565 902,711}

^{Receivables: 3,291,748 2,639,548}

^{Cash,Banks, Securitis: 529,391 468,864}

^{Other current assets: 70,789 25,468}

^{Total Current Assets: 5,176,493 4,036,591}

^{TOTAL ASSETS: 8,761,263 7,029,469}

^{--- LIABILITIES ---}

^{Equity capital: 704,543 568,181}

^{Profit & lost Account: 1,157,558 641,024}

^{Surplus equity: - 136,362}

^{Total Equity: 1,862,101 1,345,567}

^{Long Term Loans: 1,262,029 1,235,432}

^{L/T deffered taxes: 220,199 166,228}

^{Other long term Liab.: 743,275 543,716}

^{Total L/T Liabilities: 2,225,503 1,945,376}

^{Trade Creditors: 2,102,968 1,893,324}

^{Short term liabilities: 8,215 13,696}

^{Due to Bank: 1,353,055 1,021,853}

^{Provisions: 158,200 84,832}

^{Other Short term Liab.: 864,343 597,486}

^{Prepay. & Def. charges: 186,878 127,335}

^{Total short term Liab.: 4,673,659 3,738,526}

^{TOTAL LIABILITIES: 6,899,162 5,683,902}

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

^{Net Sales 12,646,920 10,542,020}

^{Result of ordinary operations 907,642 531,619}

^{NET RESULT BEFORE TAX: 671,005 359,400}

^{Tax : 154,471 85,952}

^{Net income/loss year: 516,534 273,448}

^{Interest Paid: 236,637 172,219}

^{Depreciation: 630,779 581,476}

^{Directors Emoluments: 75,000 78,000}

^{Wages and Salaries: 1,987,130 1,386,386}

^{Financial Income: 7,342 4,581}

RATIOS

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

^{Net result / Turnover(%): 0.04 0.03}

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

^{Stock / Turnover(%): 0.10 0.09}

^{Net Margin(%): 4.08 2.59}

^{Return on Equity(%): 27.74 20.32}

^{Return on Assets(%): 5.90 3.89}

^{Net Working capital: 502834.00 298065.00}

^{Cash Ratio: 0.11 0.13}

^{Quick Ratio: 0.82 0.83}

^{Current ratio: 1.11 1.08}

^{Receivables Turnover: 93.70 90.14}

^{Leverage Ratio: 3.71 4.22}

^{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

^{THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 38.38% FROM S$1,345,567 IN FY 2005 TO S$1,862,101 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$1,157,558 (2005: S $641,024); A RISE OF 80.58% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 44.99% (2005: 50.64%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$2,102,968 (2005: S$1,893,324). THE BREAKDOWN WAS}

^{AS FOLLOWS:}

^{*TRADE PAYABLES- 2006: S$2,009,432 (2005: S$1,546,023)}

^{*AMOUNT DUE TO RELATED PARTIES- 2006: S$93,536 (2005: S$347,301)}

^{AMOUNT DUE TO BANKS CONSISTED OF:}

^{*BANK OVERDRAFT- 2006: S$304,573 (2005: S$265,370)}

^{*TERM LOAN- 2006: S$134,732 (2005: S$81,311)}

^{*SHORT-TERM LOAN- 2006: S$913,750 (2005: S$675,172)}

^{IN THE LONG-TERM, SUBJECT WAS LARGELY FINANCED BY LONG-TERM LOANS WHICH AMOUNTS TO S$1,262,029 (2005: S$1,235,432). IN ALL, LEVERAGE RATIO ROSE FELL FROM 4.22 TIMES IN FY 2005 TO 3.71 TIMES AS A RESULT OF A GREATER RELATIVE RISE IN TOTAL EQUITY THAN TOTAL LIABILITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 1.11 TIMES, FROM 1.08 TIMES AND QUICK RATIO FELL TO 0.82 TIMES FROM 0.83 TIMES IN FY 2005. NET WORKING CAPITAL IMPROVED BY 68.70% FROM S$298,065 IN FY 2005 TO S$502,834.}

^{CASH AND CASH EQUIVALENTS COMPRISED OF:}

^{*CASH AND BANK BALANCES- 2006: S$409,600 (2005: S$351,191)}

^{*FIXED DEPOSITS- 2006: S$119,791 (2005: S$117,673)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 19.96% FROM S$10,542,020 IN FY 2005 TO S $12,646,920 NET PROFIT ROSE BY 88.90% TO S$516,534 (2005: S $273,448). HENCE, NET MARGIN ROSE TO 4.08% (2005: 2.59%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. HOWEVER IT IS NOTED THAT SUBJECT'S INTEREST COVERAGE RATIO WAS UNHEALTHY AT 3.83 TIMES (2005: 4.08 TIMES) WHICH NEED CAUTION.}

^{NOTES TO THE BALANCE SHEET:}

^{TERM LOAN:}

^{TERM LOAN 1:}

^{THE LOAN BEARS INTEREST AT 5.50% PER ANNUM AND IS REPAYABLE IN 240 MONTHLY INSTALMENTS COMMENCING FROM MARCH 2000. THE LOAN IS SECURED}

^{TERM LOAN 2:}

^{THE BUSINESS INSTALLMENT LOAN BEARS INTEREST AT 2.00% PER ANNUM ABOVE THE BANK'S BIL BOARD RATE, CALCULATED ON A MONTHLY REST BASIS AND IS REPAYABLE IN 48 MONTHLY INSTALLMENTS COMMENCING FROM NOVEMBER 2005. THE LOAN IS UNSECURED.}

^{TERM LOAN 3:}

^{THE SME ACESS LOAN BEARS INTEREST AT 6.50% PER ANNUM AND AT THE SWAP OFFER RATE. CALCULATED ON A MONTHLY REST BASIS AND IS REPAYABLE IN 48 MONTHLY INSTALLMENTS COMMENCING FROM MARCH 2006. THE LOAN IS SECURED BY A JOINT AND SEVERAL GUARANTEE FROM A SHAREHOLDER/DIRECTOR AND HER SPOUSE.}

^{SHORT-TERM LOANS:}

^{I) THESE SHORT-TERM LOANS, TOGEHTER WITH THE TERM LOAN AND OVERDRAFT ARE SECURED BY;}

^{A) A MORTGAGE ON THE COMPANY'S LEASEHOLD PROPERTY.}

^{B) A PLEDGE WITH THE BANK OF THE COMPANY'S FIXED DEPOSIT OF S$119,791; AND,}

^{C) A JOINT AND SEVERAL GUARANTEE FROM A SHAREHOLDER/DIRECTOR AND HER SPOUSE.}

^{CONTINGENT LIABILITIES:}

^{AT THE BALANCE SHEET DATE, THERE WERE THE FOLLOWING AMOUNTS NOT PROVIDED FOR IN THE FINANCIAL STATEMENTS IN RESPECT OF LETTERS OF CREDIT ISSUED BUT NOT UTILISED AMOUNTING TO APPROXIMATELY S$200,038 (2005: S$12,424) AND LETTERS OF GUARANTEE ISSUED TO THIRD PARTIES AMOUNTING TO APPROXIMATELY S$25,800 (2005: S$26,791).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 01/11/1994 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "SEA AND LAND TECHNOLOGIES PTE LTD".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 598,081 SHARES, OF A VALUE OF S$794 243.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMORTERS & EXPORTERS)}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THE SALE AND RENTAL OF HIGH TECHNOLOGY ELECTRONIC AND MECHANICAL EQUIPMENT AND RELATED SUPPORT SERVICES TO THE PORT AUTHORITIES, COMMERCIAL DIVING INDUSTRY AND OFFSHORE OIL AND GAS INDUSTRY.}

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

^BACKGROUND:

^{SUBJECT IS SPECIALIZED IN THE SALES, RENTALS, SYSTEM INTEGRATION, SERVICE AND SUPPORT OF HIGH TECHNOLOGY ELECTRONIC INSTRUMENTATION & MECHANICAL EQUIPMENT.}

^{INDUSTRIES SERVED IN SOUTH EAST ASIA:}

^{* THE OFFSHORE/ONSHORE OIL & GAS INDUSTRIES}

^{* COMMERCIAL SURVEY COMPANIES}

^{* DEFENCE INDUSTRIES}

^{* PORT AUTHORITIES - HYDROGRAPHIC DEPARTMENTS}

^{* FIRE, SEARCH & RESCUE ORGANIZATIONS}

^{* UNIVERSITIES & RESEARCH INSTITUTIONS}

^{* DREDGING COMPANIES}

^{* COMMERCIAL DIVING & ROV OPERATING COMPANIES}

^{* FISHERIES RESEARCH & AQUACULTURE INDUSTRIES}

^{AGENTS FOR (LOCATIONS):}

^{* EXCLUSIVELY REPRESENTS SOME OF THE WORLD'S LEADING MANUFACTURERS}

^{FROM USA AND EUROPE IN SOUTH EAST ASIA.}

^{AGENTS FOR (BRAND NAMES):}

^{* ACTIONPLUS, AMERIPACK, ANTEON, AQUA-DYNE, ASAMS, BEUCHAI, COMEX,}

^{COOPER, CYGNUS, EPOK, APPLIED ACOUSTIC, APPLIED MIRCOSYSTEMS LTD,}

^{BENTHOS, CSI WIRELESS, EDGETECH, TSC, TORPEDO, SEAFLEX, SEACON,}

^{ORCATRON ETC.}

^{BUSINESS WITH:}

^{* HONG KONG, CHINA, INDONESIA, JAPAN, KOREA, VIETNAM ETC.}

^{QUALITY ASSESSMENT:}

^{* ISO9001:2000}

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

^ACTIVITIES:

^{* MARINE BUSINESS}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE}

^{REGISTERED AND BUSINESS ADDRESS:}

^{65 TUAS AVENUE 1}

^{SINGAPORE 639508}

^{DATE OF CHANGE OF ADDRESS: 12/07/2000}

^{- OWNED PREMISE}

^{WEBSITE: http://www.sea-landtech.com.sg}

^{EMAIL : enquiry@sea-landtech.com.sg}

MANAGEMENT

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

^{1) SHEELA D/O YATHEENDRAN, A SINGAPOREAN}

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

^{2) ELIZABETH THOMAS, A SINGAPOREAN}

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

^{3) HIMANSHU GANDHI, AN INDIAN}

^{BASED IN UNITED ARAB EMIRATES}

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.42.54
UK Pound	1	Rs.84.86
Euro	1	Rs.66.95

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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