MIRA INFORM REPORT

Report Date :

24.09.2008

IDENTIFICATION DETAILS

Name :	SOJITZ ASIA PTE. LTD.
Formerly Known as :	^NICHIMEN ASIA OCEANIA PTE. LTD.
Registered Office :	77 Robinson Road, #32-00, Robinson 77 068896
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	31.12.2006
Com. Reg. No.:	^199803975R
Legal Form :	Pte Ltd
Line of Business :	General Trading and Investment Holding.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

SOJITZ ASIA PTE. LTD.

Line Of Business 

General Trading and Investment Holding. 

Parent Company

SOJITZ CORPORATION

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : US$1,800,254,000

Networth : US$ 165,766,000

Paid-Up Capital : US$ 136,507,000

Net result : US$ 10,955,000

Net Margin(%) : 0.58

Return on Equity(%) : 6.61

Leverage Ratio : 2.68

COMPANY IDENTIFICATION

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 15/08/1998}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : 982,855,000}

^{Networth : 146,200,000}

^{Capital : -}

^{Paid-Up Capital : 134,957,000}

^{Employees : 60}

^{Net result : 6,073,000}

^{Share value :}

^{Auditor : KPMG}

PREVIOUS IDENTIFICATION

^{NICHIMEN ASIA OCEANIA PTE. LTD. DATE OF CHANGE OF NAME: 01/04/2004}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 15/08/1998}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 1,880,254,000}

^{Networth : 165,766,000}

^{Capital : -}

^{Paid-Up Capital : 136,507,000}

^{Employees : 70}

^{Net result : 10,955,000}

^{Share value : -}

^{Auditor : KPMG}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 134,956,632 USD 136,507,473.60}

^{PAID-UP ORDINARY - USD 136,507,473.60}

REFERENCES

^{Protested Bills : NO}

^{Litigation : No}

^{Company status : TRADING}

^{Started : 15/08/1998}

PRINCIPAL(S)

^{SHIGEKI DANTANI G5867176U Managing Director}

DIRECTOR(S)

^{NOBUO MURASAKI G5838231R Director}

^{Appointed on : 01/11/2005}

^{Street : 261 RIVER VALLEY ROAD}

^#005-05

^{ASPEN HEIGHTS}

^{Town: SINGAPORE}

^{Postcode: 238307}

^{Country: Singapore}

^{CHANG SOW KUEN S1365694J Company Secretary}

^{Appointed on : 19/12/2005}

^{Street : 130 GEYLANG EAST AVENUE 1}

^#02-299

^{Town: SINGAPORE}

^{Postcode: 380130}

^{Country: Singapore}

^{SHIGEKI DANTANI G5867176U Director}

^{Appointed on : 10/04/2006}

^{Street : 6 DRAYCOTT PARK}

^#10-02

^{DRAYCOTT EIGHT}

^{Town: SINGAPORE}

^{Postcode: 259403}

^{Country: Singapore}

^{SHIGEKI DANTANI G5867176U Managing Director}

^{Appointed on : 10/04/2006}

^{Street : 6 DRAYCOTT PARK}

^#10-02

^{DRAYCOTT EIGHT}

^{Town: SINGAPORE}

^{Postcode: 259403}

^{Country: Singapore}

^{MASAHIKO NISHMURA G5874071W Director}

^{Appointed on : 29/01/2007}

^{Street : 7 CLAYMORE ROAD}

^#10-01

^{Town: SINGAPORE}

^{Postcode: 229538}

^{Country: Singapore}

^{IZUMI KONNO G5983218U Director}

^{Appointed on : 23/07/2007}

^{Street : 62 HAVELOCK ROAD}

^#05-12

^{Town: SINGAPORE}

^{Postcode: 169659}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{YASUSHI HOSHIKA G5586409N}

^{YOSHIMA UCHIDA F5658056P}

^{NOBUO OYAMA MZ0093925}

^{LIM THIN KONG FRANCIS S1835761E}

^{KANAI YUJI F5659565K}

^{TOSHIAKI KANEKO G5580030N}

^{TOSHIO SUGITA G5634030R}

^{HIROSHI KANEMATSU G5669066U}

^{OSAMU IWAI G5679895T}

^{HIROYUKI OSONE G5747927U}

^{LIM YEN LENG FLORENCE S1349403G}

ACTIVITY(IES)

^{HOLDING COMPANIES Code:11320}

^{TRADING COMPANIES Code:22190}

^{BUILDING CONSTRUCTION CONSULTANTS Code:2890}

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD}

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

^{2) BUILDING CONSTRUCTION; BUILDING CONSTRUCTION (MIXED ACTIVITIES)}

CHARGES

^{Date: 16/01/2001}

^{Comments : CHARGE NO: 200100284, 200100285 (DISCHARGED - 08/12/2003)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): OVERSEA-CHINESE BANKING CORPORATION LIMITED}

BANKERS

^{MIZUHO CORPORATE BANK, LTD}

^{THE BANK OF TOKYO-MITSUBISHI UFJ, LTD (THE BANK OF TOKYO-MITSUBISHI, LTD)}

ASSOCIATED COMPANY(IES)

^{CAPITAL DISTRIBUTORS (S) PTE LTD}

^{48 MACTAGGART ROAD}

^#03-03

^{MAE BUILDING}

^{SINGAPORE Singapore}

^{PHESCHEM INDUSTRIAL CORPORATION}

^Philippines

^{NNT CONSULTING CO LTD}

^Thailand

^{HYUNDAI MOTOR (THAILAND) CO LTD}

^Thailand

SHAREHOLDERS(S)

^{SOJITZ CORPORATION 134,956,632 Company}

^{Street : 1-20, AKASAKA 6-CHOME}

^MINATO-KU

^{Town: TOKYO}

^{Postcode: 107-8655}

^{Country: Japan}

FORMER SHAREHOLDER(S)

^{NICHIMEN CORPORATION 110,101,105}

HOLDING COMPANY

^{SOJITZ CORPORATION UF42569M % : 100}

SUBSIDIARY(IES)

^{MELHADO PTE LTD}

^{P.T. SOJITZ INDONESIA}

^{SOJITZ PHILIPPINES CORPORATION}

^{NISSHO IWAI INTERNATIONAL (SINGAPORE) LTD}

^{SOJITZ INDIA PTE LTD}

^{SOJITZ (MALAYSIA) SDN BHD}

^{SOJITZ (THAILAND) CO LTD}

^{P.T. WISMA KARAWANG}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 07/06/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS ---}

^{Preliminary Exp 20,113,000 44,399,000}

^{Tangible Fixed Assets: 3,607,000 3,622,000}

^{Investments 7,041,000 6,870,000}

^{Total Fixed Assets: 30,761,000 54,891,000}

^{Inventories: 29,400,000 25,542,000}

^{Receivables: 441,307,000 330,890,000}

^{Short Term Fin. Assets:}

^{Cash,Banks, Securitis: 75,506,000 95,119,000}

^{Other current assets: 32,738,000 89,975,000}

^{Total Current Assets: 578,951,000 541,526,000}

^{TOTAL ASSETS: 609,712,000 596,417,000}

^{--- LIABILITIES ---}

^{Equity capital: 136,507,000 134,957,000}

^{Reserves: 4,194,000 1,014,000}

^{Profit & lost Account: 21,850,000 20,394,000}

^{Other: 3,215,000 2,491,000}

^{Surplus equity: 1,550,000}

^{Total Equity: 165,766,000 160,406,000}

^{Long Term Loans:}

^{Other long term Liab.: 54,000 32,000}

^{Total L/T Liabilities: 54,000 32,000}

^{Trade Creditors: 230,137,000 225,061,000}

^{Short term liabilities: 56,000 42,000}

^{Advanced payments: 814,000 1,613,000}

^{Due to Bank: 197,083,000 185,794,000}

^{Provisions: 3,765,000 2,334,000}

^{Other Short term Liab.: 12,037,000 21,135,000}

^{Total short term Liab.: 443,892,000 435,979,000}

^{TOTAL LIABILITIES: 443,946,000 436,011,000}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 1,880,254,000 1,356,753,000}

^{Result of ordinary operations}

^{NET RESULT BEFORE TAX: 15,716,000 17,567,000}

^{Tax : 4,761,000 4,568,000}

^{Net income/loss year: 10,955,000 12,999,000}

^{Interest Paid: 9,538,000 5,297,000}

^{Depreciation: 606,000 287,000}

^{Dividends: 9,160,000 1,000,000}

^{Directors Emoluments: 4,225,000 3,487,000}

^{Wages and Salaries: 17,506,000 12,114,000}

^{Financial Income: 12,305,000 10,390,000}

RATIOS

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

^{Turnover per employee: 26860771.43 19382185.71}

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

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

^{Stock / Turnover(%): 0.02 0.02}

^{Net Margin(%): 0.58 0.96}

^{Return on Equity(%): 6.61 8.10}

^{Return on Assets(%): 1.80 2.18}

^{Dividends Coverage: 1.20 13.00}

^{Net Working capital: 135059000.00 105547000.00}

^{Cash Ratio: 0.17 0.22}

^{Quick Ratio: 1.16 0.98}

^{Current ratio: 1.30 1.24}

^{Receivables Turnover: 84.49 87.80}

^{Leverage Ratio: 2.68 2.72}

^{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}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE GROUP WAS DEEMED TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH TOTAL EQUITY IMPROVING BY 3.34% TOTALLING US$165,766,000 (2005: US$160,406,000). THIS WAS MAINLY CONTRIBUTED BY HIGHER ACCUMULATED PROFITS BROUGHT FORWARD OF USD21,850,000 (2005: USD20,394,000).}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 51.85% (2005: 51.62%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$230,137,000 (2005: US$225,061,000). THE BREAKDOWN WERE AS FOLLOWS:}

^{* TRADE PAYABLES - 2006: US$200,795,000 (2005: US$176,333,000)}

^{* AMOUNTS DUE TO IMMEDIATE HOLDING COMPANY (TRADE) - 2006: US$17,089,000 (2005: US$6,734,000)}

^{* AMOUNT DUE TO OTHER RELATED CORPORATIONS (TRADE) - 2006: US$12,253,000 (2005: US$41,994,000)}

^{ON THE OTHER HAND, AMOUNT DUE TO BANKS HAD INCREASED TO US$197,083,000 (2005: US$185,794,000) AND COMPRISED OF:}

^{* BILLS PAYABLES - 2006: US$32,146,000 (2005: US$30,229,000)}

^{* INTEREST-BEARING LOANS (UNSECURED) - 2006: US$154,552,000 (2005: US$ 155,565,000)}

^{* SHORT TERM LOANS FROM IMMEDIATE HOLDING COMPANY - 2006: US$7,269,000 (2005: NIL)}

^{* SHORT TERM LOANS FROM OTHER RELATED CORPORATIONS - 2006: US$3,116,000 (2005: NIL)}

^{IN ALL, LEVERAGE RATIO REMAINED AGGRESSIVE BUT FELL FROM 2.72 TIMES TO 2.68 TIMES AS A RESULT OF A GREATER RISE IN TOTAL EQUITY THAN TOTAL LIABILITIES. A LOWER RATIO WOULD BE MORE DESIRABLE AS THE LOWER THE RATIO, THE GREATER THE FINANCIAL SAFETY AND OPERATING FREEDOM FOR THE COMPANY.}

^LIQUIDITY:

^{LIQUIDITY STATUS OF THE COMPANY WAS CONSIDERED HEALTHY ALTHOUGH NET WORKING CAPITAL DECLINED TO US$135,059,000 IN FY 2006 (2005: US$105,547,000). BOTH CURRENT AND QUICK RATIOS INCREASED TO 1.30 TIMES (2005: 1.24 TIMES) AND 1.16 TIMES (2005: 0.98 TIMES), RESPECTIVELY.}

^{PROFITABILITY:}

^{REVENUE IMPROVED BY 38.58% AMOUNTING TO US$1,880,254,000 (2005: US$1,356,753,000). HOWEVER, NET INCOME DECLINED BY 15.72%, TOTALLING US$10,955,000 (2005: USD12,999,000). THIS MIGHT BE ATTRIBUTABLE TO A NOTABLE INCREASE IN OTHER OPERATING EXPENSES OF US$17,204,000 (2005: US$9,765,000). AS A RESULT, NET MARGIN STOOD LOWER AT 0.58% (2005: 0.96%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED OR IMPROVED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, AVERAGE COLLECTION PERIOD HAD SHORTENED AND WAS COMPUTED AT 84 DAYS (2005: 88 DAYS).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{SUBSEQUENT EVENTS}

^{ON 31 MARCH 2007, THE COMPANY DECLARED A TAX-EXEMPT INTERIM DIVIDEND OF US$13,330,000 OUT OF PROFITS FOR YEAR ENDING 31 DECEMBER 2006. THE DIVIDEND DECLARED AFTER BALANCE SHEET DATE HAS NOT BEEN RECOGNIZED AS A LIABILITY AT THE BALANCE SHEET DATE.}

^{INTEREST BEARING LOAND (UNSECURED):}

^{THE UNSECURED BANK LOANS BEAR INTEREST AND ARE REPAYABLE WITHIN ONE YEAR.}

^{INTRA-GROUP GUARANTEE:}

^{AT THE BALANCE SHEET DATE, THE COMPANY HAS ISSUED A FINANCIAL GUARANTEE TO A BANK IN RESPECT OF BANKING FACILITIES GRANTED TO A SUBSIDIARY AMOUNTING TO US$3,000,000 (2005: US$3,000,000). THE GUARANTEE IS VALID TILL 30 JUNE 2007.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 15/08/1998 AS A LIMITED PRIVATE COMPANY AND WAS TRADING UNDER THE FORMER NAMESTYLE AS "NICHIMEN ASIA OCEANIA PTE. LTD.".}

^{SUBSEQUENTLY ON 01/04/2004, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "SOJITZ ASIA PTE. LTD.".}

^{THE COMPANY HAS A ISSUED AND PAID-UP CAPITAL OF 134,956,632 SHARES OF A VALUE OF US$136,507,473.60.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

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

^{2) BUILDING CONSTRUCTION; BUILDING CONSTRUCTION (MIXED ACTIVITIES)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE RELATING TO GENERAL TRADING AND INVESTMENT HOLDING.}

^{SUBJECT WAS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: INVESTMENT MANAGEMENT AND/OR COMPANIES.}

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

^ACTIVITIES:

^{* SUBJECT ENGAGES IN GENERAL TRADING, IMPORTERS AND EXPORTERS. SUBJECT ALSO ENGAGES IN INVESTMENT HOLDING.}

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

^{* JAPANESE CHAMBER OF COMMERCE & INDUSTRY}

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^{FROM THE TELE-INTERVIEW CONDUCTED SUBJECT HAS 70 EMPLOYEES. NO OTHER TRADE INFORMATION WAS AVAILABLE.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006: 60; 2005: NOT AVAILABLE (2004: 56; 2003: 27; 2002: 29; 2001: 31; 2000: 36)}

^{* GROUP - 2005: NOT AVAILABLE (2004: 191; 2003: 189; 2002: 196; 2001: 220; 2000: 244)}

^{THE COMPANY'S IMMEDIATE AND ULTIMATE HOLDING COMPANY IS SOJITZ CORPORATION, INCORPORATED IN JAPAN.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{77 ROBINSON ROAD}

^#32-00

^{SIA BUILDING}

^{SINGAPORE 068896}

^{DATE OF CHANGE OF ADDRESS: 01/05/2007}

^{- PROPERTY RECORD WAS NOT AVAILABLE}

^{WEBSITE: www.sojitz.com}

^{EMAIL: nichimen@se.asia.nichimen.co.jp}

MANAGEMENT

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

^{1) NOBUO MURASAKI, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{2) SHIGEKI DANTANI, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{3) MASAHIKO NISHMURA, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{4) IZUMI KONNO, A JAPANESE}

^{- BASED IN SINGAPORE.}

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

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE DECLINED BY 7.5% IN Q1 2007. EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 7.4%. SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, INDUSTRIAL AND CONSTRUCTION MACHINERY REPORTED DECLINES OF 11.6% TO 23.8%.

HOWEVER, WHOLESALERS OF FOOD, BEVERAGES AND TOBACCO REGISTERED HIGHER TURNOVER OF 5.4%.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE IN QUARTER 1 2007 FELL BY 7.6%. EXCLUDING PETROLEUM, FOREIGN SALES DECLINED BY 8.0%. MOST WHOLESALE SECTORS REPORTED LOWER OVERSEAS RECEIPTS IN QUARTER 1 2007 COMPARED TO THE PREVIOUS QUARTER, EXCEPT HOUSEHOLD EQUIPMENT AND FURNITURE SECTOR. SHIP CHANDLERS & BUNKERING REPORTED THE LARGEST DECLINE OF 18.3% IN QUARTER 1 2007, FOLLOWED BY FOOD BEVERAGES & TOBACCO SECTOR OF 17.7%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE MARGINALLY BY 0.7% IN QUARTER 2 2007, COMPARED TO QUARTER 2 2006. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.1%. SALES OF OPTICAL GOODS & BOOKS, FURNITURE & HOUSEHOLD EQUIPMENT AND SUPERMARKETS ENJOYED STRONG GROWTHS OVER A YEAR AGO. PROVISION & SUNDRY SHOPS, WATCHES AND JEWELLERY, DEPARTMENT STORES AND WEARING APPAREL & FOOTWEAR SECTORS ALSO REPORTED HIGHER SALES OF 4.35 TO 5.9% RESPECTIVELY.

HOWEVER, RETAILERS OF MOTOR VEHICLES, FOOD & BEVERAGES, TELECOMMUNICATIONS APPARATUS & COMPUTERS AND PETROL SERVICES STATIONS REPORTED LOWER SALES.

OUTLOOK

GENERALLY, WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD & BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC.

RETAIL TRADE FIRMS ANTICIPATE BUSINESS TO BE LESS BRISK FOR THE NEXT 6 MONTHS. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.83
UK Pound	1	Rs.84.90
Euro	1	Rs.67.26

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions