MIRA INFORM REPORT

Report Date :

03.10.2008

IDENTIFICATION DETAILS

Name :	NSK INTERNATIONAL (SINGAPORE) PTE LTD
Registered Office :	^238A Thomson Road #24-01/05 Novena Square
Country :	Singapore
Financials (as on) :	31.03.2008
Date of Incorporation :	^30.11.1995
Com. Reg. No.:	^199508531N
Legal Form :	^Pte Ltd
Line of Business :	Importing, Exporting, Selling and Marketing of Bearing Products and Related Components

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 :	Clear

Subject Company

NSK INTERNATIONAL (SINGAPORE) PTE LTD

Line Of Business 

IMPORTING, EXPORTING, SELLING AND MARKETING OF BEARING PRODUCTS AND RELATED COMPONENTS

Parent Company

NSK LTD

(PERCENTAGE OF SHAREHOLDINGS: 100.00)

Financial Elements

FY 2008

COMPANY

Sales : S$ 210,384,652

Networth : S$ 22,579,489

Paid-Up Capital : S$ 530,223

Net result : S$ 5,539,587

Net Margin(%) : 2.63

Return on Equity(%) : 24.53

Leverage Ratio : 2.55

COMPANY IDENTIFICATION

^{Subject Company : NSK INTERNATIONAL (SINGAPORE) PTE LTD}

^{Former Name : -}

^{Business Address : 238A THOMSON ROAD}

^#24-01/05

^{NOVENA SQUARE}

^{Town : SINGAPORE}

^{Postcode : 307684}

^{Country : Singapore}

^{Telephone : 6496 8000}

^{Fax : 6250 0247}

^{ROC Number : 199508531N}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 30/11/1995}

^{Previous Legal Form : -}

^{Summary year : 31/03/2008}

^{Sales : 210,384,652}

^{Networth : 22,579,489}

^{Capital : -}

^{Paid-Up Capital : 530,223}

^{Employees : -}

^{Net result : 5,539,587}

^{Share value : 1}

^{Auditor : ERNST & YOUNG LLP}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 750,000 SGD 750,000.00}

^{PAID-UP ORDINARY - SGD 750,000.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 30/11/1995}

PRINCIPAL(S)

^{YASUHIRO MITSUDA G5766513R Director}

DIRECTOR(S)

^{YASUHIRO MITSUDA G5766513R Director}

^{Appointed on : 11/10/2004}

^{Street : 238A THOMSON ROAD}

^#24-01/05

^{NOVENA SQUARE}

^{Town: SINGAPORE}

^{Postcode: 307684}

^{Country: Singapore}

^{KIYOHARU MIYOSHI G5911885X Director}

^{Appointed on : 11/11/2006}

^{Street : 238A THOMSON ROAD}

^#24-01/05

^{NOVENA SQUARE}

^{Town: SINGAPORE}

^{Postcode: 307684}

^{Country: Singapore}

^{CHUA SIEW ENG LILY S0130428C Company Secretary}

^{Appointed on : 22/12/1995}

^{Street : 27 SIMEI STREET 4}

^#09-09

^{TROPICAL SPRING}

^{Town: SINGAPORE}

^{Postcode: 529875}

^{Country: Singapore}

^{SEIICHI ASAKA TE8057475 Director}

^{Appointed on : 02/09/2002}

^{Street : 1-9-4 MEJIRODAI BUNKYOU-KU}

^{Town: TOKYO}

^{Postcode: -}

^{Country: Japan}

^{YASUSHI SAKURAI TF5143809 Director}

^{Appointed on : 11/11/2006}

^{Street : 15B1, 98/122 DS TOWER 1}

^{SUKHUMVIT 33RD KLONGTON-NUA}

^WATTANA

^{Town: BANGKOK}

^{Postcode: 10110}

^{Country: Thailand}

^{YUKIO TAKEBE TG8112871 Director}

^{Appointed on : 11/11/2006}

^{Street : 3-2-12 HACHIMAN-YAMA}

^SETAGAYA

^{Town: TOKYO}

^{Postcode: -}

^{Country: Japan}

^{KAZUO MATSUDA TG8633964 Director}

^{Appointed on : 01/10/2007}

^{Street : 8-18-16 CHIYOGAOKA ASAO-KU}

^{KAWASAKI-CITY}

^{Town: KANAGAWA}

^{Postcode: -}

^{Country: Japan}

^{HIROKAZU TAKEOKA TZ0458757 Director}

^{Appointed on : 29/06/2005}

^{Street : COSMO VILLA APARTMENT NO. 5D, 5FL.}

^{39 SUKHUMVIT SOI 12}

^{SUKHUMVIT ROAD, KLONGTOEY}

^{Town: BANGKOK}

^{Postcode: 10110}

^{Country: Thailand}

FORMER DIRECTOR(S)

^{YOSHIDA KAZUAKI SF0417854}

^{HATANO TAKEOMI SF2286037}

^{SEKIYA TETSUO N5166416}

^{MORIYA KOZO N6203242}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code: 11760}

^{OFFICE BUILDINGS Code: 15140}

^{BASED ON ACRA'S RECORD 1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

^{2) HEAD/REGIONAL OFFICES OF ENTERPRISES OPERATING ABROAD}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

ASSOCIATED COMPANY(IES)

^{PT NSK INDONESIA}

^Indonesia

SHAREHOLDERS(S)

^{NSK LTD 750,000 Company}

^{Street : NISSEI BUILDING 6-3}

^{OHSAKI 1-CHOME}

^SHINAGAWA-KU

^{Town: TOKYO}

^{Postcode: 141}

^{Country: Japan}

FORMER SHAREHOLDER(S)

^{YOSHIDA KAZUAKI 1}

^{HATANO TAKEOMI 1}

HOLDING COMPANY

^{NSK LTD UF17027N % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : ABUNDANT}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

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

^{Date Account Lodged: 17/07/2008}

^{Balance Sheet Date: 31/03/2008 31/03/2007}

^{Number of weeks: 52 64}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 375,373 56,602}

^{Investments 100,000 100,000}

^{Total Fixed Assets: 475,373 156,602}

^{Inventories: 19,253,815 21,025,685}

^{Receivables: 51,007,807 41,587,795}

^{Cash,Banks, Securitis: 8,701,522 538,816}

^{Other current assets: 613,571 700,791}

^{Total Current Assets: 79,576,715 63,853,087}

^{TOTAL ASSETS: 80,052,088 64,009,689}

^{--- LIABILITIES ---}

^{Equity capital: 530,223 530,223}

^{Profit & lost Account: 22,049,266 18,069,679}

^{Total Equity: 22,579,489 18,599,902}

^{Trade Creditors: 54,631,237 34,860,622}

^{Due to Bank: - 7,479,840}

^{Provisions: 945,842 1,524,956}

^{Other Short term Liab.: 1,032,933 765,245}

^{Prepay. & Def. charges: 862,587 779,124}

^{Total short term Liab.: 57,472,599 45,409,787}

^{TOTAL LIABILITIES: 57,472,599 45,409,787}

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

^{Net Sales 210,384,652 233,735,450}

^{Purchases,Sces & Other Goods: 192,251,584 215,476,551}

^{Gross Profit: 18,133,068 18,258,899}

^{NET RESULT BEFORE TAX: 6,488,587 6,937,906}

^{Tax : 949,000 1,525,899}

^{Net income/loss year: 5,539,587 5,412,007}

^{Interest Paid: 378,217 245,940}

^{Depreciation: 179,955 57,429}

^{Dividends: 1,560,000 1,250,000}

^{Wages and Salaries: 2,279,626 2,445,377}

^{Financial Income: 55,229 50,446}

RATIOS

^{31/03/2008 31/03/2007}

^{Net result / Turnover(%): 0.03 0.02}

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

^{Net Margin(%): 2.63 2.32}

^{Return on Equity(%): 24.53 29.10}

^{Return on Assets(%): 6.92 8.45}

^{Dividends Coverage: 3.55 4.33}

^{Net Working capital: 22104116.00 18443300.00}

^{Cash Ratio: 0.15 0.01}

^{Quick Ratio: 1.04 0.93}

^{Current ratio: 1.38 1.41}

^{Receivables Turnover: 87.28 64.05}

^{Leverage Ratio: 2.55 2.44}

^{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 STATEMENTS FOR THE YEAR ENDED 31 MARCH 2007 COVERS THE PERIOD FROM 1 JANUARY 2006 TO 31 MARCH 2007, A TOTAL OF 64 WEEKS. THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2008 COVERS THE PERIOD FROM 1 APRIL 2007 TO 31 MARCH 2008, A TOTAL OF 52 WEEKS. THUS, THE ANALYSIS MAY NOT GIVE A TRUE AND FAIR VIEW.}

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

^{THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH NET WORTH IMPROVED BY 21.40% FROM US$18,599,902 IN FY 2007 TO US$22,579,489 IN FY 2008. THIS WAS DUE TO HIGHER REVENUE RESERVE OF US$22,049,266 (2007: US $18,069,679); A RISE OF 22.02% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 95.06% (2007: 76.77%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$54,631,237 (2007: US$34,860,622). THE BREAKDOWN WAS AS FOLLOWS:}

^{*EXTERNAL PARTIES - 2008: US$11,877 (2007: US$79,424)}

^{*RELATED COMPANIES - 2008: US$45,402,590 (2007: US$26,161,255)}

^{*HOLDING COMPANIES - 2008: US$9,216,770 (2007: US$8,619,943)}

^{IN ALL, LEVERAGE RATIO INCREASED FROM 2.44 TIMES TO 2.55 TIMES AS A RESULT OF A MORE THAN PROPORTIONATE RISE IN TOTAL LIABILITIES AS COMPARED TO THE RISE IN TOTAL EQUITY. A LOWER RATIO WOULD BE MORE DESIRABLE AS THE LOWER THE RATIO, THE GREATER THE FINANCIAL SAFETY AND OPERATING FREEDOM FOR THE COMPANY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 19.85% TO US$22,104,116 (2007: US$18,443,300).}

^{CURRENT RATIO DROPPED TO 1.38 TIMES (2007: 1.41 TIMES) WHILE QUICK RATIO ROSE TO 1.04 TIMES (2007: 0.93 TIMES).}

^{PROFITABILITY:}

^{REVENUE FELL BY 9.99% FROM US$233,735,450 IN FY 2007 TO US$210,384,652. HOWEVER, NET PROFIT IMPROVED BY 2.36% TO US$5,539,587 (2007: US$5,412,007).}

^{THE IMPROVEMENT IN NET PROFIT WAS MOST LIKELY DUE TO A DROP IN THE FOLLOWING EXPENESES:}

^{*STAFF COSST - 2008: US$2,279,626 (2007: US$2,445,377)}

^{*INVENTORY WRITE-OFF/DOWN - 2008: US$94,416 (2007: US$378,148)}

^{HENCE, NET MARGIN INCREASED TO 2.63% (2007: 2.32%).}

^{REVENUE COMPRISED OF:}

^{*EXTERNAL PARTIES - 2008: US$101,610,137 (2007: US$118,231,101)}

^{*RELATED PARTIES - 2008: US$81,480,745 (2007: US$86,225,011)}

^{*HOLDING COMPANY - 2008: US$25,099,160 (2007: US$27,938,548)}

^{*ASSOCIATED COMPANY - 2008: US$2,194,610 (2007: US%1,340,790)}

^{DEBT SERVICING:}

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

^{THE AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 87 DAYS (2007: 64 DAYS).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 30/11/1995 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "NSK INTERNATIONAL (SINGAPORE) PTE LTD".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 750,000 SHARES, OF A VALUE OF S$750,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

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

^EXPORTERS)

^{(2) HEAD/REGIONAL OFFICES OF ENTERPRISES OPERATING ABROAD.}

^{THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: BEARINGS.}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE IMPORTING, EXPORTING, SELLING AND MARKETING OF BEARING PRODUCTS AND RELATED COMPONENTS.}

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

^ACTIVITIES:

^{* TRADING OF MINIATURE BALL BEARINGS, BEARING MONITORS, BEARING UNITS}

^{ROLLER BEARINGS}

^{* IMPORTING, EXPORTING, SELLING & MARKETING OF BEARING PRODUCTS &}

^{RELATED COMPONENTS}

^{PRODUCTS AND SERVICES:}

^{* AIRCRAFT INSTRUMENT BEARINGS}

^{* AUTOMOTIVE BEARINGS}

^{* BEARINGS}

^{* BRIDGE BEARINGS}

^{* CONVEYOR BEARINGS}

^{* JEWELLED BEARINGS}

^{* LINEAR BEARINGS}

^{* MINIATURE BEARINGS}

^{* NEEDLE ROLLER BEARINGS}

^{* OILLESS OR SELF LUBRICATING BEARINGS}

^{* ONE WAY BEARINGS}

^{* PILLOW BLOCK BEARINGS}

^{* PLASTIC BEARINGS}

^{* ROD END BEARINGS}

^{* ROLLER BEARINGS}

^{* TAPERED ROLLER BEARINGS}

^{TRADE NAME/ BRAND:}

^{* NSK}

^{NUMBER OF EMPLOYEES:}

^{* 2007: 30}

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

^{IT IS A WHOLLY-OWNED SUBSIDIARY OF NSK LTD., INCORPORATED IN JAPAN, WHICH IS ALSO THE ULTIMATE HOLDING COMPANY.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{238A THOMSON ROAD}

^#24-01/05

^{NOVENA SQUARE TOWER A}

^{SINGAPORE 307684}

^{DATE OF CHANGE OF ADDRESS: 18/06/2007}

^{- RENTED PREMISE}

^{- PREMISE OWNED BY: NOVENA SQUARE INVESTMENTS LTD}

^WAREHOUSE:

^{NAIGAI NITTO BUILDING,}

^{2 TOH GUAN ROAD EAST}

^{SINGAPORE 608837}

^WEBSITE:

^{http://www.nskinternational.com (HOLDING COMPANY)}

^{http://www.nsk-singapore.com.sg}

^EMAIL:

^-

MANAGEMENT

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

^{1) YASUHIRO MITSUDA, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{2) KIYOHARU MIYOSHI, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{3) SEIICHI ASAKA, A JAPANESE}

^{- BASED IN JAPAN.}

^{4) YASUSHI SAKURAI, A JAPANESE}

^{- BASED IN THAILAND.}

^{5) YUKIO TAKEBE, A JAPANESE}

^{- BASED IN JAPAN.}

^{6) KAZUO MATSUDA, A JAPANESE}

^{- BASED IN JAPAN.}

^{7) HIROKAZU TAKEOKA, A JAPANESE}

^{- BASED IN THAILAND.}

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 5.2% IN 1Q 2008, SLOWER THAN THE 6.0% GROWTH IN 4Q 2007. NON-OIL RE-EXPORTS GREW BY 2.0% IN 1Q 2008, IN CONTRAST TO THE 1.2% DECLINE IN 4Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY A MODERATE 1.4% IN 1Q 2008, FOLLOWING A HIGHER 9.9% GROWTH IN 4Q 2007.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE FELL BY 7.1% IN 1Q 2008 OVER 4Q 2007.

EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 6.5%.

AFTER SEASONAL ADJUSTMENT, DOMESTIC SALES ROSE BY 4.4% IN 1Q 2008 OVER 4Q 2007.

EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 2.7%.

ON A YEAR-ON-YEAR BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 26.5% OVER THE PREVIOUS YEAR. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 12.2%. AFTER REMOVING PRICE EFFECT, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 2.8% IN 1Q 2008 OVER 1Q 2007.

ON A QUARTER-OVER-QUARTER BASIS, MOST WHOLESALE SECTORS REPORTED LOWER DOMESTIC SALES AFTER RECORDING BRISK BUSINESS IN THE PREVIOUS QUARTER.

GENERAL WHOLESALE TRADE FELL BY 24.6% IN 1Q 2008, AFTER RECORDING HIGHER SALES OF 26.8% IN 4Q 2007. THE SALES OF TELECOMMUNICATIONS AND COMPUTERS, INDUSTRIAL AND CONSTRUCTION MACHINERY, AND HOUSEHOLD EQUIPMENT AND FURNITURE REPORTED LOWER SALES BY 13.3% 15.3% IN 1Q 2008.

DOMESTIC SALES OF PETROLEUM AND PETROLEUM PRODUCTS FELL BY 7.7% IN 1Q 2008 OVER 4Q 2007. AFTER ADJUSTING FOR PRICE CHANGES, SALES DECLINED BY 12.4%.

ON THE OTHER HAND, SHIP CHANDLERS AND BUNKERING, FOOD, BEVERAGES AND TOBACCO RECORDED HIGHER TURNOVER OF 8.8% AND 0.8% OVER THE PREVIOUS QUARTER RESPECTIVELY.

MAJORITY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 1Q 2008 OVER 1Q 2007.

THE GROWTH IN THE OVERALL DOMESTIC SALES WAS MAINLY CONTRIBUTED BY PETROLEUM AND

PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING, AND GENERAL WHOLESALE TRADE, WHICH REPORTED HIGHER SALES OF 42.9% TO 47.4%. AFTER ADJUSTING FOR PRICE CHANGES, THE TRADING VOLUME CHANGED MARGINALLY FOR PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING WHILE THE SALE VOLUME ROSE BY 27.8% FOR GENERAL WHOLESALERS.

OTHER SECTORS THAT RECORDED BETTER SALES INCLUDE TIMBER, PAINTS AND CONSTRUCTION MATERIALS (20.3%) CHEMICALS AND CHEMICAL PRODUCTS (8.7%) INDUSTRIAL AND CONSTRUCTION MACHINERY (7.6%) TRANSPORT EQUIPMENT (7.2%) AND FOOD, BEVERAGES AND TOBACCO (0.7%).

CONVERSELY, DOMESTIC SALES OF ELECTRONIC COMPONENTS FELL BY 10.9%, THE FIFTH CONSECUTIVE QUARTER OF DECLINE SINCE 1Q 2007. AFTER REMOVING PRICE CHANGES, SALES OF ELECTRONIC COMPONENTS FELL BY 3.6%. WHOLESALE VALUES OF TELECOMMUNICATIONS AND COMPUTERS, AND HOUSEHOLD EQUIPMENT AND FURNITURE ALSO DECLINED MARGINALLY IN 1Q 2008. AFTER REMOVING PRICE CHANGES, SALES OF THE TWO SECTORS ROSE COMPARED TO A YEAR AGO.

FOREIGN WHOLESALE TRADE INDEX

FOREIGN WHOLESALE TRADE SALES FELL MARGINALLY BY 0.6% IN 1Q 2008 OVER 4Q 2007.

EXCLUDING PETROLEUM, SALES FELL BY 2.4%.

AFTER SEASONAL ADJUSTMENT, FOREIGN SALES ROSE BY 5.6% OVER 4Q 2007. EXCLUDING PETROLEUM, SALES ROSE BY 5.2%.

ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE SALES ROSE BY 31.4% OVER 1Q 2007.

EXCLUDING PETROLEUM, SALES ROSE BY 18.3%. AFTER REMOVING PRICE EFFECT, OVERSEAS SALES ROSE BY 6.7% OVER 1Q 2007.

COMPARED TO 4Q 2007, THERE WAS MIXED PERFORMANCE IN FOREIGN SALES AMONG THE WHOLESALE SECTORS IN 1Q 2008.

FOOD, BEVERAGES AND TOBACCO WHOLESALERS REPORTED HIGHER OVERSEAS SALES OF 16.0% IN 1Q 2008 OVER 4Q 2007, THE LARGEST INCREASE AMONG ALL SECTORS. IT WAS FOLLOWED BY GENERAL WHOLESALE TRADE (9.4%) SHIP CHANDLERS AND BUNKERING (4.7%) AND WHOLESALING OF CHEMICALS AND CHEMICAL PRODUCTS (2.2%).

SALES OF PETROLEUM AND PETROLEUM PRODUCTS ROSE SLIGHTLY BY 1.3% IN 1Q 2008 OVER 4Q 2007. HOWEVER, AFTER ADJUSTING FOR PRICE CHANGES, THE SALES VOLUME FELL BY 3.8%.

CONVERSELY, FOREIGN SALES OF HOUSEHOLD EQUIPMENT AND FURNITURE, TELECOMMUNICATIONS AND COMPUTERS, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, TRANSPORT EQUIPMENT, INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS FELL IN 1Q 2008 OVER 4Q 2007.

COMPARED TO A YEAR AGO, SOME WHOLESALE SECTORS REPORTED DOUBLE-DIGIT GROWTHS IN FOREIGN SALES IN 1Q 2008 WHILE OTHERS FELL.

WHOLESALING OF FOOD, BEVERAGES AND TOBACCO CONTINUED TO RECORD HIGH GROWTH RATES IN FOREIGN SALES, WITH HIGHER TURNOVER OF 89.0% IN 1Q 2008 OVER A YEAR AGO. AFTER ADJUSTING FOR PRICES, SALES VOLUME ROSE BY 72.9% OVER A YEAR AGO.

WITH HIGHER FUEL PRICES. WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERINH REPORTED HIGHER FOREIGN SALES OF 49.2% AND 46.3% RESPECTIVELY OVER A YEAR AGO. AFTER REMOVING PRICE EFFECT, THE SALES VOLUME OF

PETROLEUM AND PETROLEUM PRODUCTS FELL BY 3.1% WHILE SALES VOLUME OF SHIP CHANDLERS AND BUNKERING HELD ITS LEVEL.

GENERAL WHOLESALE TRADE, CHEMICALS AND CHEMICAL PRODUCTS, TRANSPORT EQUIPMENT, AND

INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO REGISTERED STRONG SALES GROWTHS BETWEEN 10.5% TO 47.4%.

CONVERSELY, FOREIGN SALES DECLINED IN 1Q 2008 FOR HOUSEHOLD EQUIPMENT AND FURNITURE, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, ELECTRONIC COMPONENTS, AND

TELECOMMUNICATIONS AND COMPUTERS. THE SALES FELL BY 4.3% TO 8.7% FOR THESE SECTORS COMPARED TO 1Q 2007.

NEWS

MARCH RETAIL GROWTH FUELLED BY PETROL PRICES

THE VALUE OF PETROL SALES IN MARCH SOARED 39%, AS A RESULT OF RISING CRUDE OIL PRICES, EVEN THOUGH THE ACTUAL VOLUME WAS ONLY MARGINALLY HIGHER.

PETROL STATION SALES POSTED THE FASTEST GROWTH OF ALL RETAIL SEGMENTS IN MARCH, ACCORDING TO FIGURES THE DEPARTMENT OF STATISTICS RELEASED YESTERDAY.

PETROL SALES ROSE 28.2% IN FEBRUARY.

MOST RETAIL SEGMENTS POSTED HIGHER GROWTH MARCH AFTER A WEAKER SHOWING IN FEBRUARY FOR THE COMPUTERS, FURNITURE, OPTICAL GOODS AND BOOKS SEGMENTS. BUT MOTOR VEHICLES FELL 8.1% FROM MARCH 2007 AS A RESULT OF THE ESCALATING PETROL PRICES. CRUDE OIL HIT ALMOST US$127 A BARREL RECENTLY.

THE SUPERMARKET AND FOOD AND BEVERAGE SEGMENTS ALSO REPORTED LOWER SALES ACTIVITY THAN IN FEBRUARY, WITH FALLS OF 4.7% AND 11.9%, RESPECTIVELY.

OVERALL RETAIL SALES ROSE BY 5.6% COMPARED TO MARCH 2007. EXCLUDING MOTOR VEHICLES, SALES VOLUME ROSE BY 12.5%.

OCBC ECONOMIST SELENA LING NOTED THE RETAIL NUMBERS INDICATED RELATIVELY HEALTHY CONSUMER SPENDING. “THIS IS A TESTIMONY TO THE FACT THAT THE SINGAPOREAN ECONOMY IS STILL ENJOYING BROAD-BASED GROWTH DESPITE THE GLOBAL SLOWDOWN,” SHE SAID.

THE TOTAL VALUE OF RETAIL SALES IN MARCH WAS ESTIMATED AT S$2.89 BILLION, COMPARED WITH S$2.59 BILLION IN FEBRUARY.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 9% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THOSE DEALING IN TROPICAL PRODUCE, WEARING APPAREL AND FOOTWEAR, AND INDUSTRIAL MACHINERY AND EQUIPMENT ARE THE ONES EXPRESSING OPTIMISM.

A NET WEIGHTED BALANCE OF 29% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING SEPTEMBER 2008. SUPERMARKETS AND RETAILERS OF JEWWELLERY AND WATCHES EXPECT SLOWER BUSINESS AFTER THE FESTIVE PERIOD. AS A RESULT OF THE REDUCED CERTIFICATE OF ENTITLEMENT (COE) QUOTA, MOTOR VEHICLES RETAILERS ARE ESPECIALLY CONCERNED WITH THE SALES.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.88
UK Pound	1	Rs.82.97
Euro	1	Rs.64.99

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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