MIRA INFORM REPORT

Report Date :

23.05.2008

IDENTIFICATION DETAILS

Name :	IMTEX TRADING PTE LTD

Registered Office :	^{77 High Street} ^{#09-04 High Street Plaza}

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	^21.03.1989

Com. Reg. No.:	^198901091M

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	^{General Wholesale Trade (including General Importers and} ^Exporters) ^{Wholesale on a Fee or Contract Basis (Eg Commission Agencies)}

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 :	Regular

Litigation :	Exists

Subject Company

IMTEX TRADING PTE LTD

Line Of Business

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

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

Parent Company

Financial Elements

FY 2006

COMPANY

Sales : S$ 13,019,744

Networth : S$ 932,039

Paid-Up Capital : S$ 501,002

Net result : S$ 148,187

Net Margin(%) : 1.14

Return on Equity(%) : 15.90

Leverage Ratio : 4.03

COMPANY IDENTIFICATION

^{Subject Company : IMTEX TRADING PTE LTD}

^{Former Name :
-}

^{Business Address : 77 HIGH STREET}

^#09-04

^{HIGH STREET PLAZA}

^{Town :
SINGAPORE}

^{Postcode : 179433}

^{County :
-}

^{Country :
Singapore}

^{Telephone : 6338 8840}

^{Fax :
6337 7836}

^{ROC Number :
198901091M}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Exempt Pte
Ltd}

^{Date Inc. : 21/03/1989}

^{Previous Legal Form : -}

^{Summary year :
31/12/2006}

^{Sales :
13,019,744}

^{Networth : 932,039}

^{Capital :
1,000,000}

^{Paid-Up Capital :
501,002}

^{Employees : 4}

^{Net result : 148,187}

^{Share value : 1}

^{Auditor :}^{VEERA &
ASSOCIATES}

REFERENCES

^{Litigation : YES}

^{Company status : TRADING}

^{Started :
21/03/1989}

PRINCIPAL(S)

^{RAZIA BEGUM D/O MAHERALI
GULAM S1430460F Director}

DIRECTOR(S)

^{SALIM KAMRUDDIN
DHARANI S2591639E Director}

^{Appointed on : 21/03/1989}

^{Street : 3 TANJONG
RHU ROAD}

^#09-01

^{THE WATERSIDE}

^{Town :
SINGAPORE}

^{Postcode : 436881}

^{Country : Singapore}

^{RAZIA BEGUM D/O MAHERALI
GULAM S1430460F Director}

^{Appointed on : 24/11/1995}

^{Street : 3 TANJONG
RHU ROAD}

^#09-01

^{THE WATERSIDE}

^{Town :
SINGAPORE}

^{Postcode : 436881}

^{Country : Singapore}

^{WANG LEE JYU S1600693I Company Secretary}

^{Appointed on : 09/03/2007}

^{Street : 114 BUKIT
BATOK WEST AVENUE 6}

^#07-188

^{Town :
SINGAPORE}

^{Postcode : 650114}

^{Country : Singapore}

^{SALMIAH BTE SARPIAI S1794643I Company Secretary}

^{Appointed on : 09/03/2007}

^{Street : 643
HOUGANG AVENUE 8}

^#10-279

^{Town :
SINGAPORE}

^{Postcode : 530643}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{MAHERALI GULAM
HUSEIN S0368822D}

^{RAGINI D/O
DHANVANTRAY S2607093G}

^{SIVANADIAN SHANMUGAM
SUBRAMANIAN S0595289A}

^{ELANGO SUBRAMANIAN S1531258J}

^{LEONG PIEW KEONG S2157767G}

^{MARIAMBIBI SULAIMAN
ANGULLIA S7239020B}

^{LORETTA WONG S1849862F}

ACTIVITY(IES)

^{IMPORTERS And
EXPORTERS
Code: 11760}

^{COMMISSION
MERCHANTS
Code: 4990}

^{SCRAP METALS Code: 19045}

^{CHEMICALS
Code:
3970}

^{GENERAL MERCHANDISE -
WHSLE Code:
10220}

^{BASED ON ACRA'S RECORD}

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

^EXPORTERS)

CHARGES

^{Date: 31/05/2005}

^{Comments : CHARGE NO: C200503083}

^{AMOUNT SECURED: 0.00 AND
ALL MONIES OWING}

^{CHARGEE(S): STANDARD
CHARTERED BANK}

^{Comments : CHARGE NO: C200600924 (DISCHARGED ON
19/07/2006)}

^{AMOUNT SECURED: 0.00 AND
ALL MONIES OWING}

^{CHARGEE(S): UNITED
OVERSEAS BANK LIMITED}

^{Date: 13/03/2008}

^{Comments : CHARGE NO: C200802466}

^{AMOUNT SECURED: 0.00 AND
ALL MONIES OWING}

^{CHARGEE(S): STANDARD
CHARTERED BANK}

^{Date: 02/06/2000}

^{Comments : CHARGE NO: 200002472 (DISCHARGED ON
17/03/2005)}

^{AMOUNT SECURED: 0.00 AND
ALL MONIES OWING}

^{CHARGEE(S): UCO BANK}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{STANDARD CHARTERED BANK}

SHAREHOLDERS(S)

^{SALIM KAMRUDDIN
DHARANI
501,001 Private Person}

^{Street : 3 TANJONG RHU ROAD}

^#09-01

^{THE WATERSIDE}

^{Town :
SINGAPORE}

^{Postcode : 436881}

^{Country : Singapore}

^{RAZIA BEGUM D/O MAHERALI
GULAM 1 Private Person}

^{Street : 3 TANJONG RHU ROAD}

^#09-01

^{THE WATERSIDE}

^{Town :
SINGAPORE}

^{Postcode : 436881}

^{Country : Singapore}

FORMER SHAREHOLDER(S)

^{MAHERALI GULAM HUSEIN}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality :
AVERAGE}

^{Liquidity : SUFFICIANT}

^{Payments : REGULAR}

^{Trend :
LEVEL}

^{Financial Situation : AVERAGE}

LITIGATION(S)

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

^{Case Number: MCS17409/1995}

Defendant IMTEX TRADING PTE LTD ROC #: 198901091M

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 30/10/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^---
ASSETS

^{Tangible Fixed
Assets: 553,500 735,507}

^{Total Fixed Assets: 553,500 735,507}

^{Inventories: 798,022 250,521}

^{Receivables: 2,176,620 2,320,340}

^{Cash,Banks,
Securitis: 35,511 40,602}

^{Other current assets: 1,125,001 471,409}

^{Total Current Assets: 4,135,154 3,082,872}

^{TOTAL ASSETS: 4,688,654 3,818,379}

^{---
LIABILITIES}

^{Equity capital: 501,002 501,002}

^{Profit & lost Account: 431,037
282,850}

^{Total Equity: 932,039 783,852}

^{Trade Creditors: 47,057 8,946}

^{Due to Bank: 840,431 1,168,230}

^{Provisions: 100,316 153,316}

^{Other Short term
Liab.: 2,764,811 1,702,035}

^{Total short term Liab.: 3,756,615 3,034,527}

^{Prepay. & Def.
charges: 4,000 2,000}

^{TOTAL LIABILITIES: 3,756,615
3,034,527}

^{---
PROFIT & LOSS ACCOUNT}

^{Net Sales 13,019,744 19,226,416}

^{Purchases,Sces & Other
Goods: 12,568,275 18,590,525}

^{Gross Profit: 451,469 635,891}

^{Result of ordinary
operations 303,704 200,367}

^{NET RESULT BEFORE
TAX: 155,187 98,210}

^{Tax :
7,000
13,300}

^{Net income/loss year: 148,187 84,910}

^{Interest Paid: 118,466 47,100}

^{Depreciation: 18,792 22,207}

^{Directors Emoluments: 72,000 132,000}

^{Wages and Salaries: 33,900 46,000}

RATIOS

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

^{Turnover per
employee: 3,254,936.00 4,806,604.00}

^{Net result /
Turnover(%): 0.01
0.00}

^{Fin. Charges /
Turnover(%): 0.01 0.00}

^{Stock / Turnover(%): 0.06 0.01}

^{Net Margin(%): 1.14 0.44}

^{Return on Equity(%): 15.90 10.83}

^{Return on Assets(%): 3.16 2.22}

^{Net Working capital: 378,539.00 48,345.00}

^{Cash Ratio: 0.01 0.01}

^{Quick Ratio: 0.59 0.78}

^{Current ratio: 1.10 1.02}

^{Receivables Turnover: 60.18 43.45}

^{Leverage Ratio: 4.03
3.87}

^{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

^{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} ^{18.90% FROM S$783,852 IN FY 2005 TO S$932,039 IN FY 2006. THIS} ^{WAS DUE TO HIGHER ACCUMULATED PROFITS OF S$431,037 (2005:} ^{S$282,850);
A RISE OF 52.39% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY
FINANCED BY OTHER SHORT TERM} ^{LIABILTIES WHICH MADE UP 73.60% (2005: 56.09%) OF THE TOTAL
CURRENT} ^{LIABILITIES AND AMOUNTED TO S$2,764,811 (2005: S$1,702,035).} ^{THE BREAKDOWN IS AS FOLLOWS:}

^{* ADVANCES - 2006:
S$947,715 (2005: S$768,468)}

^{* DUE TO RELATED PARTIES
- 2006: S$933,567 (2005: S$933,567)}

^{* DUE TO THIRD PARTIES -
2006: S$767,722 (2005: NIL)}

^{* AMOUNT DUE TO
DIRECTORS - 2006: S$115,807 (2005: NIL)}

^{PROVISIONS OF S$100,316
(2005: S$153,316) COMPRISED THE FOLLOWING:}

^{* PROVISION FOR DIRECTORS'
FEES - 2006: S$72,000 (2005: S$132,000)}

^{* CURRENT TAX PAYABLE -
2006: S$28,316 (2005: S$21,316)}

^{IN ALL, LEVERAGE RATIO
ROSE FROM 3.87 TIMES TO 4.03 TIMES AS A RESULT} ^{OF A GREATER RISE IN TOTAL LIABILITIES
TO TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S
LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM} ^{THE RISE IN NET WORKING CAPITAL AND
LIQUIDITY RATIOS. CURRENT RATIO} ^{ROSE TO 1.10 TIMES, UP FROM 1.02
TIMES BUT QUICK RATIO FELL TO 0.59} ^{TIMES FROM 0.78 TIMES IN FY 2005.}

^{NET WORKING CAPITAL
IMPROVED BY 6.83 TIMES FROM S$48,345 IN FY 2005 TO} ^S$378,539.

^{PROFITABILITY:}

^{REVENUE POSTED A DECREASE OF 32.28% FROM
S$19,226,416 IN FY 2005 TO} ^{S$13,019,744 BUT NET PROFIT INCREASED BY 74.52% TO S$148,187
(2005:} ^{S$84,910). THIS COULD BE DUE TO THE LOWER EXPENSES BY 49.46%
IN} ^{FY 2006 WHICH AMOUNTED TO S$263,645 (2005: S$521,667) HENCE, NET} ^{MARGIN ROSE TO 1.14% (2005: 0.44%).}

^{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, ITS INTEREST COVERAGE WAS HEALTHY CONSIDERING THAT ITS} ^{INTEREST
EXPENSES WERE LOW AT S$118,466 IN FY 2006 (2005: S$47,100).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{AMOUNT DUE TO BANKERS,
SECURED}

^{* BANK OVERDRAFT, SECURED - 2006: NIL (2005:
S$467,960)}

^{* TRUST RECEIPTS, SECURED - 2006: S$840,431
(2005: S$700,270)}

^{THE ABOVE FACILITIES ARE SECURED BY MORTGAGE
OF THE OFFICE PREMISES AT} ^{111 NORTH BRIDGE ROAD, #08-15 PENINSULA PLAZA, SECOND OPEN
MORTGAGE OF} ^{THE RESIDENTIAL PROPERTY OF THE DIRECTORS AT BLK 3
TANJONG RHU ROAD,} ^{#09-01, THE WATERSIDE AND THE PERSONAL GUARANTEE
OF THE DIRECTORS OF} ^{THE COMPANY.}

^{INTEREST CHARGED ON THE BANK OVERDRAFT AND
TRUST RECEIPT IS BETWEEN 1%} ^{AND 1.5% ABOVE THE BANKS' PREVAILING PRIME LENDING RATE.}

^{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} ^{21/03/1989 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING
UNDER} ^{ITS PRESENT NAMESTYLE AS "IMTEX TRADING PTE LTD".}

^{THE COMPANY HAS AN
ISSUED AND PAID-UP CAPITAL OF} ^{501,002 SHARES, OF A VALUE OF S$501,002.}

^{PRINCIPAL ACTIVITIES:}

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

^{AUTHORITY (ACRA) 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)}

^{DURING THE FINANCIAL
YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL}

^{ACTIVITIES ARE THAT OF
GENERAL WHOLESALE TRADE (INCLUDING GENERAL}

^{IMPORTERS AND EXPORTERS)
AND WHOLESALE ON A FEE OR CONTRACT BASIS (EG}

^{COMMISSION AGENCIES)}

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

^{SUBJECT ENGAGES IN THE
FOLLOWING ACTIVITIES:}

^{* TRADING COMPANIES}

^{PRODUCTS DEALINGS:}

^{* FERROUS METALS}

^{- HMS 1 & 2}

^{* NON-FERROUS METALS}

^{- COPPER SCRAP
'BIRCH/CLIFF', COPPER '194', COPPER RESIDUES,}

^{BRASS SCRAP 'HONEY',
BRASS 'OCEAN', BRASS DROSS, BRASS}

^{'LABEL' ALUMINIUM SCRAP
'TENSE', IRONY ALUMINIUM SCRAP,}

^{ZINC DIE CAST, ETC.}

^{* SYNTHETIC INDUSTRIAL
DIAMOND POWDER}

^{* DIAMOND CUTTING TOOLS}

^{* INDUSTRIAL METAL
POWDER}

^{- BRONZE POWDER}

^{* THERMAL PAPERS}

^{* CHEMICALS}

^{TITANIUM DIOXIDE ANATASE
GRADE, LITHOPONE, SODIUM NITRATE,}

^{- CITRIC ACID
MONOHYDRATE FOOD GRADE ETC}

^{* TEXTILES}

^{- CD, GREY, COTTON ETC}

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

^{SUBJECT ENGAGES IN THE TRADING
OF SCRAP METAL RECYCLING, CHEMICALS} ^{AND GENERAL TRADING. IT COMPRISES OF LOCAL AS WELL AS OVERSEAS} ^ACTIVITIES.

^{IMPORT COUNTRIES:}

^{* WORLDWIDE}

^{EXPORT COUNTRIES:}

^{* WORLDIDE}

^{TERMS OF PAYMENT:}

^{* DOCUMENT AGAINST
PAYMENT}

^{* LETTER OF CREDIT}

^{NUMBER OF EMPLOYEES:}

^{* 4}

^{REGISTERED AND BUSINESS
ADDRESS:}

^{77 HIGH STREET}

^{#09-04 HIGH STREET PLAZA}

^{SINGAPORE 179433}

^{DATE OF CHANGE OF
ADDRESS: 21/03/2008}

^{ADDRESS PROVIDED BY
CLIENT:}

^{111 NORTH BRIDGE ROAD}

^{#08-15 PENINSULA PLAZA}

^{SINGAPORE 179098}

^{- PREVIOUS ADDRESS OF
THE COMPANY AS VERIFIED BY SUBJECT PERSONNEL}

^{VIA TELE INTERVIEW}

^{WEBSITE:
www.imtexglobal.com}

^{EMAIL:
imtex@pacific.net.sg}

MANAGEMENT

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

^{1) RAZIA BEGUM D/O
MAHERALI GULAM HUSAIN MAKANI, A SINGAPOREAN}

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

^{2) SALIM KAMRUDDIN
DHARANI, A SINGAPOREAN}

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

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}

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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