MIRA INFORM REPORT

Report Date :

01.09.2008

IDENTIFICATION DETAILS

Name :	^JUKI SINGAPORE PTE LTD
Registered Office :	^20 Bendemeer Road ^#04-12 ^Cyberhub ^339914
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^17.03.1995
Com. Reg. No.:	^199501853K
Legal Form :	^Pte Ltd
Line of Business :	^General Wholesale Trade (including General Importers and Exporters)

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

^{JUKI SINGAPORE PTE LTD}

Line Of Business 

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

Parent Company

^{JUKI CORPORATION}

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

COMPANY

Sales : USD 181,086,219

Networth : USD 10,763,660

Paid-Up Capital : USD 8,079,780

Net result : USD 15,127

Net Margin(%) : 0.01

Return on Equity(%) : 0.14

Leverage Ratio : 7.24

COMPANY IDENTIFICATION

^{Subject Company : JUKI SINGAPORE PTE LTD}

^{Former Name : -}

^{Business Address : 20 BENDEMEER ROAD #04-12 CYBERHUB}

^{Town : SINGAPORE}

^{Postcode : 339914}

^{County : -}

^{Country : Singapore}

^{Telephone : 65534388}

^{Fax : 65525568}

^{ROC Number : 199501853K}

^{Reg. Town : -}

SUMMARY

^{All amounts in this report are in: USD UNLESS OTHERWISE STATED}

^{Legal Form : Pte Ltd}

^{Date Inc. : 17/03/1995}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 181,086,219}

^{Networth : 10,763,660}

^{Capital : -}

^{Paid-Up Capital : 8,079,780}

^{Employees : 50}

^{Net result : 15,127}

^{Share value : -}

^{Auditor : DELOITTE & TOUCHE}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 17/03/1995}

PRINCIPAL(S)

^{LOOI KAM HONG @ LOOI AHA HONG S2530975H Director}

DIRECTOR(S)

^{LOOI KAM HONG @ LOOI AHA HONG S2530975H Director}

^{Appointed on : 01/12/1996}

^{Street : 137 SUNSET WAY}

^#08-14

^{CLEMENTI PARK}

^{Town : SINGAPORE}

^{Postcode : 597159}

^{Country : Singapore}

^{TSUTOMU YOSHIDA TG3546252 Director}

^{Appointed on : 01/01/2006}

^{Street : 26A GRAND GATEWAY GARDEN}

^{2118B HUASHAN ROAD}

^{Town : SHANGHAI}

^{Postcode : -}

^{Country : China}

^{LEE SIEW JEE JENNIFER S1336064B Company Secretary}

^{Appointed on : 30/08/2007}

^{Street : 2 ENG KONG ROAD}

^{Town : SINGAPORE}

^{Postcode : 599081}

^{Country : Singapore}

^{HIROKI KONISHI TG3592327 Director}

^{Appointed on : 01/03/2008}

^{Street : 5-4-18, TSUKIMINO, YAMATO}

^{Town : KANAGAWA}

^{Postcode : -}

^{Country : Japan}

^{HIROKI KONISHI TG3592327 Managing Director}

^{Appointed on : 01/03/2008}

^{Street : 5-4-18, TSUKIMINO, YAMATO}

^{Town : KANAGAWA}

^{Postcode : -}

^{Country : Japan}

FORMER DIRECTOR(S)

^{HELEN CAMPOS THOMAS S1318008C}

^{INOUE NORIHIKO F2316427L}

^{INAGAKI SABURO MN6584087}

^{YAMAOKA TAKEO MN8403676}

^{SUGIHARA YASUO MN9018508}

^{JULIANA LOH JOO HUI S2558149J}

^{MASAHIRO ISHIZAKA MQ3956873}

^{KAZUYUKI NAKAMURA TF0148049}

^{SUSUMU MATSUDA G5747744Q}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code: 11760}

^{BASED ON ACRA'S RECORD}

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

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

ASSOCIATED COMPANY(IES)

^{JUKI BANGLADESH LTD}

^Bangladesh

SHAREHOLDERS(S)

^{JUKI CORPORATION 13,000,000 Company}

^{Street : 8-2-1 KOKURYO CHO}

^{CHOUFU SHI}

^{Town : TOKYO}

^{Postcode : 182}

^{Country : Japan}

FORMER SHAREHOLDER(S)

^{WAN TIEW LENG LYNN}

^{NG NGAI}

HOLDING COMPANY

^{JUKI CORPORATION UF16163Z %: 100}

SUBSIDIARY(IES)

^{JUKI LANKA SERVICE CENTRE (PRIVATE)}

^LIMITED

^{JUKI MACHINERY (INDIA) PVT LTD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIANT}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

^{All amounts in this report are in: USD UNLESS OTHERWISE STATED}

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

^{Date Account Lodged: 30/08/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 74,083 104,083}

^{Tangible Fixed Assets: 317,350 319,359}

^{Investments 223,906 243,743}

^{Total Fixed Assets: 615,339 667,185}

^{Inventories: 44,412,942 33,049,766}

^{Receivables: 41,059,988 30,508,894}

^{Cash,Banks, Securitis: 1,688,149 7,673,454}

^{Other current assets: 934,764 638,649}

^{Total Current Assets: 88,095,843 71,870,763}

^{TOTAL ASSETS: 88,711,182 72,537,948}

^{--- LIABILITIES}

^{Equity capital: 8,079,780 8,079,780}

^{Profit & lost Account: 2,683,880 2,668,753}

^{Total Equity: 10,763,660 10,748,533}

^{L/T deffered taxes: - -}

^{Other long term Liab.: - 27,561}

^{Total L/T Liabilities: - 27,561}

^{Trade Creditors: 73,863,600 58,373,710}

^{Short term liabilities: 30,154 32,232}

^{Due to Bank: 3,000,000 2,000,000}

^{Other Short term Liab.: 1,053,768 1,355,912}

^{Total short term Liab.: 77,947,522 61,761,854}

^{TOTAL LIABILITIES: 77,947,522 61,789,415}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 181,086,219 149,162,415}

^{Result of ordinary operations - -}

^{NET RESULT BEFORE TAX: 73,127 152,576}

^{Tax : 58,000 128,043}

^{Net income/loss year: 15,127 24,533}

^{Interest Paid: 496,515 594,578}

^{Depreciation: 217,333 228,403}

^{Directors Emoluments: 265,537 222,215}

^{Wages and Salaries: 4,222,620 3,263,420}

^{Financial Income: 449,418 274,106}

RATIOS

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

^{Turnover per employee: 3,621,724.38 2,983,248.30}

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

^{Stock / Turnover(%): 0.25 0.22}

^{Net Margin(%): 0.01 0.02}

^{Return on Equity(%): 0.14 0.23}

^{Return on Assets(%): 0.02 0.03}

^{Net Working capital: 10,148,321.00 10,108,909.00}

^{Cash Ratio: 0.02 0.12}

^{Quick Ratio: 0.55 0.62}

^{Current ratio: 1.13 1.16}

^{Receivables Turnover: 81.63 73.63}

^{Leverage Ratio: 7.24 5.75}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{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 MARGINALLY BY 0.14% FROM US$10,748,533 IN FY 2005 TO US$10,763,660 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$2,683,880 (2005: US$2,668,753); A RISE OF 0.57% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 94.76% (2005: 94.51%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$73,863,600}

^{(2005: US$58,373,710). THE BREAKDOWN IS AS FOLLOWS:}

^{-TRADE PAYABLES TO THIRD PARTIES - 2006: US$4,329,162}

^{(2005: US$3,956,612)}

^{-HOLDING COMPANY - 2006: US$68,563,149 (2005: US$52,767,017)}

^{-SUBSIDIARIES - 2006: US$101,488 (2005: US$55,771)}

^{-RELATED COMPANIES - 2006: US$869,801 (2005: US$1,235,652)}

^{-DISCOUNTED BILLS WITH RECOURSE - 2006: - (2005: US$358,658)}

^{AMOUNT DUE TO BANKS OF US$3,000,000 (2005: US$2,000,000) CONSISTED OF:}

^{-SHORT-TERM BANK LOANS - 2006: US$$3,000,000 (2005: US$2,000,000)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 5.75 TIMES TO 7.24 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.13 TIMES, DOWN FROM 1.16 TIMES AND QUICK RATIO FELL TO 0.55 TIMES FROM 0.62 TIMES IN FY 2005.}

^{NET WORKING CAPITAL IMPROVED MARGINALLY BY 0.39% FROM US$10,108,909 IN FY 2005 TO US$10,148,321.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-CASH AT BANK - 2006: US$397,860 (2005: US$508,075)}

^{-FIXED DEPOSITS - 2006: US$1,215,000 (2005: US$7,016,200)}

^{-CASH ON HAND - 2006: US$75,289 (2005: US$149,179)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 21.40% FROM US$149,162,415 IN FY 2004 TO US$181,086,219 BUT NET PROFIT DROPPED BY 38.34% TO US$15,127 (2005: US $24,533). THIS COULD BE DUE TO HIGHER OTHER OPERATING EXPENSES OF US $5,093,735 IN FY 2006 (2005: US$4,178,358). HENCE, NET MARGIN FELL TO 0.01% (2005: 0.02%).}

^REVENUE:

^{-SALE OF GOODS - 2006: US$180,800,681 (2005: US$148,974,789)}

^{-RENDERING OF SERVICES - 2006: US$133,943 (2005: US$130,057)}

^{-COMMISSION INCOME - 2006: US$151,595 (2005: US$57,569)}

^{DEBT SERVICING:}

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

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-CLUB MEMBERSHIP - 2006: US$42,583 (2005: US$42,583)}

^{-DEFERRED TAX ASSETS - 2006: US$31,500 (2005: US$61,500)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{SHORT-TERM BANK LOANS}

^{THE LOANS ARE DENOMINATED IN UNITED STATES DOLLARS AND RENEWABLE ON A MONTHLY BASIS. INTEREST RATES VARY FROM 6.07% TO 6.11% (2005: 4.04% TO 5.93%) PER ANNUM. THE LOANS ARE GUARANTEED BY THE HOLDING COMPANY.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 17/03/1995 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "JUKI SINGAPORE PTE LTD".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 13,000,000 SHARES, OF A VALUE OF S$13,000,000.}

^{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)}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF THE TRADING OF INDUSTRIAL SEWING MACHINES AND THEIR RELATED SPARE PARTS.}

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

^{BACKGROUND OF SUBJECT:}

^{JUKI SINGAPORE PTE LTD ("JUKI SINGAPORE"), A WHOLLY-OWNED SUBSIDARY OF JUKI CORPORATION, JAPAN, WAS PRIMARILY ESTABLISHED IN YEAR 1982 AS A REPRESENTATIVE OFFICE. OVER THE YEARS, IT HAS EXPANDED ITS OPERATION SIGNIFICANTLY THROUGH EXPANSIONS AND BECOME THE REGIONAL HEAD QUARTERS COVERING THR ENTIRE REGIONS OF SOUTH-EAST ASIA, MIDDLE EAST, ASIA PACIFIC AND OCEANIA.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* IMPORT AND EXPORT OF JUKI BRAND INDUSTRIAL SEWING MACHINES,}

^{RELATED EQUIPMENT AND ACCESSORIES}

^{PRODUCTS DEALINGS:}

^{* GENERAL MACHINES CATEGORY: 1-2 NEEDLE, LOCKSTITCH MACHINE,}

^{OVERLOCK/SAFETY STITCH MACHINE, ZIGZAG STITCHING MACHINE,}

^{COVERING STITCH MACHINE, DOUBLE CHAINSTITCH MACHINE, SPECIAL}

^{PURPOSE MACHINE}

^{* AUTOMATIC MACHINE CATEGORY: BUTTON SEWING MACHINE,}

^{ARTACKING/SHAPE-TACKING MACHINE, EYELET BUTTONHOLING MACHINE,}

^{COMPUTER-CONTROLLED, CYCLE MACHINE, AUTOMATIC BUTTON SEWING}

^{INDEXED, AUTOMATIC MACHINE}

^{* LHD MACHINE CATEGORY: FLAT-BED SEWING MACHINE, LONG ARM SEWING}

^{MACHINE, CYLINDER-BED SEWING MACHINE, POST-BED SEWING MACHINE,}

^{EXTRA HEAVY-WEIGHT MATERIAL MACHINE}

^SERVICES:

^{* ENGINEERING SUPPORT}

^{- PROVIDE TRAINING AND TECHNICAL CONSULTANCY TO FACTORY}

^{MANAGERS AND SUPERVISORS}

^{* SUPPORT IN ATTACHMENT}

^{- SUPPLY SPECIALIZED ASSISTANCE IN TRAINING AND CONSULTANCY}

^{IN THE AREA OF ATTACHMENT}

^{* MAINTENANCE SUPPORT}

^{- PROVIDE CUSTOMERS WITH MACHINE KNOWLEDGE, MACHINE}

^{INSTALLATION AND MAINTENANCE SERVICES}

^{* AFTER SALES SUPPORT}

^{- SALES & MARKETING SECTION ARE WELL-TRAINED TO RESPOND TO}

^{THEIR CUSTOMERS' QUERIES ON PROPOSAL AND PRICE QUOTATION.}

^{THEY ALSO PROVIDE VALUED-ADDED SERVICES IN TERMS OF MACHINE}

^{COMPARISON AND RECOMMENDATION}

^{TRADE NAMES/BRANDS:}

^{* JUKI}

^MARKETS:

^{* SOUTH-EAST ASIA}

^{* MIDDLE EAST}

^{* ASIA PACIFIC}

^{* OCEANIA}

^{AGENT/DISTRIBUTOR OF THEIR SEWING MACHINES:}

^{* HONG LIN SEWING MACHINE PTE LTD}

^{* TAI MA SEWING MACHINE PTE LTD}

^{TERMS OF PAYMENT:}

^{* TRADE AND OTHER RECEIVABLES: 180 DAYS TERM}

^{(2005: 180 DAYS TERM)}

^{* TRADE AND OTHER PAYABLES : 150 DAYS TERM}

^{(2005: 150 DAYS TERM)}

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

^{* JAPANESE CHAMBER OF COMMERCE & INDUSTRY}

^{NUMBER OF EMPLOYEES:}

^{* 50 (2007)}

^{ATTEMPTS HAVE BEEN MADE TO RECONFIRM THE BELOW TRADE INFORMATION AND}

^{OBTAIN OTHER INFORMATION. HOWEVER, THERE WAS NO RESPONSE AFTER CALLING A FEW TIMES.}

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

^{SUBJECT ENGAGES IN WHOLESALE TRADING OF SEWING MACHINES. THEIR PRODUCTS ARE SOURCE FROM THEIR FACTORY WHICH IS LOCATED IN JAPAN. THEY THEN EXPORT THE SEWING MACHINES TO THEIR CLIENTS BASED IN OTHER COUNTRIES.}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE; 2004: 190;}

^{2003: 122)}

^{* GROUP - 2006: - (2005: -)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{20 BENDEMEER ROAD}

^{#04-12 CYBERHUB}

^{SINGAPORE 339914}

^{- DATE OF CHANGE OF ADDRESS: 11/01/2003}

^{WEBSITE: http://www.juki.com.sg}

^{EMAIL: juki@jukisin.com.sg}

MANAGEMENT

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

^{1) LOOI KAM HONG @ LOOI AHA HONG, A SINGAPOREAN}

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

^{2) TSUTOMU YOSHIDA, A JAPANESE}

^{- BASED IN CHINA}

^{3) HIROKI KONISHI, A JAPANESE}

^{- BASED IN JAPAN}

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.}

^{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.44.21
UK Pound	1	Rs.79.76
Euro	1	Rs.64.72

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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