MIRA INFORM REPORT

Report Date :

06.04.2011

IDENTIFICATION DETAILS

Name :	INGRAM MICRO INDIA LIMITED SINGAPORE BRANCH

Registered Office :	205 Kallang Bahru #1m-Oo Maya Plastic Building Singapore 339341

Country :	Singapore

Date of Incorporation :	12.05.2010

Com. Reg. No.:	T10FC0043L

Legal Form :	Foreign Company

Line of Business :	Trading and Distribution of Computers, Computers Peripheral and Consumables.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Unknown

Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Singapore

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Subject Company

INGRAM MICRO INDIA LIMITED SINGAPORE BRANCH

Line Of Business

TRADING AND DISTRIBUTION OF COMPUTERS, COMPUTERS PERIPHERAL AND CONSUMABLES.

Parent Company

----

Financial Elements

Sales : -

Networth : -

Paid-Up Capital : -

Net result : -

Net Margin(%) : -

Return on Equity(%) : -

Leverage Ratio : -

COMPANY IDENTIFICATION

Subject Company :	INGRAM MICRO INDIA LIMITED SINGAPORE BRANCH
Business Address:	205 KALLANG BAHRU #1M-OO MAYA PLASTIC BUILDING
Town:	SINGAPORE
Postcode:	339341
Country:	Singapore
Telephone:	65901694/ 6298088
ROC Number:	T10FC0043L
Easy Number company:	00006636126933

SUMMARY

Legal Form:	Foreign Company
Date Inc.:	12/05/2010
Summary year :	31/03/2010
All amounts in this report are in :	INR
Sales:
Capital:
Share value:

BASED ON ACRA'S RECORD

AUTHORISED CAPITAL 320,000,000.00 V/SHARE 0.00 INDIA RUPEES

AUDITOR : NIL

REFERENCES

Litigation:	No
Company status :	TRADING
Started :	12/05/2010
Credit Rating:	LOW RISK

DIRECTOR(S)

KLAAR LIDWINA EDUARD EYCKERMAN	EH702794	Agent
Appointed on :	12/05/2010
Street :	63 PATERSON ROAD #10-01 THE PATERSON
Town:	SINGAPORE
Postcode:	238539
Country:	Singapore

NG WAI KONG	S2576317C	Agent
Appointed on :	12/05/2010
Street :	23 JALAN RAJA UDANG #21-09 THE ARTE
Town:	SINGAPORE
Postcode:	329216
Country:	Singapore

ELLY THAM	S7205465B	Agent
Appointed on :	12/05/2010
Street :	27 WEST COAST RISE #06-11 MONTEREY PARK CONDOMINIUM
Town:	SINGAPORE
Postcode:	127470
Country:	Singapore

STEPHEN JOHN PAINE	094512629	Director
Appointed on :	05/12/2006
Street :	32 ORANGE GROVE ROAD #M-212
Town:	SINGAPORE
Postcode:	258354
Country:	Singapore

NG WAI KONG	S2576317C	Director
Appointed on :	09/07/2010
Street :	23 JALAN RAJA UDANG #21-09 THE ARTE
Town:	SINGAPORE
Postcode:	329216
Country:	Singapore

JAISHANKAR KRISHNAN	Z1780431	Director
Appointed on :	27/10/2001
Street :	FLAT NO. 1201, SOMERSET, 12TH FLOORHIRANANDANI GARDENS, POWAI
Town:	MUMBAI
Postcode:	400 076
Country:	India

SHAILENDRA NARENDRA GUPTA	Z1813168	Director
Appointed on :	01/09/2001
Street :	9 NATHAN ROAD #09-04
Town:	SINGAPORE
Postcode:	248730
Country:	Singapore

ACTIVITY(IES)

Activity Code:

5100

COMPUTERS

BASED ON ACRA'S RECORD

1) WHOLESALE OF COMPUTER HARDWARE AND PERIPHERAL EQUIPMENT

2) WHOLESALE OF COMPUTER SOFTWARE (EXCEPT GAMES)

PAYMENT HISTORY AND EXPERIENCES

Trade Morality:	UNKNOWN
Liquidity :	UNKNOWN
Payments :	UNKNOWN
Trend :	UNKNOWN
Financial Situation:	UNKNOWN

FINANCIAL COMMENTS

NOTE: THERE IS NO FINANCIAL STATEMENT AVAILABLE AT THE TIME OF THIS

REPORT AS SUBJECT IS NEWLY INCORPORATED IN 12/05/2010 . IN

REPLACEMENT, AN ADVERSE CHECK IS CONDUCTED ON ITS LOCAL

DIRECTORS.

BACKGROUND/OPERATION

SUBJECT WAS INCORPORATED IN NETHERLANDS, AND REGISTERED AS A FOREIGN

BRANCH IN SINGAPORE, ON 12/05/2010, TRADING UNDER THE NAMESTYLE "

INGRAM MICRO INDIA LIMITED SINGAPORE BRANCH ".

THE SINGAPORE BRANCH IS A SEGMENT OF DELL B.V. AND IS NOT A SEPARATELY

INCORPORATED LEGAL ENTITY.

THE COMPANY HAS AN AUTHORISED CAPITAL OF A VALUE OF

INDIA, RUPEES 320,000,000.

PRINCIPAL ACTIVITIES:

SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY

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

1) WHOLESALE OF COMPUTER HARDWARE AND PERIPHERAL EQUIPMENT

2) WHOLESALE OF COMPUTER SOFTWARE (EXCEPT GAMES)

FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:

BACKGROUND ON ITS HOLDING COMPANY:

INGRAM MICRO INC., A FORTUNE 100 COMPANY, IS THE WORLD'S LARGEST

TECHNOLOGY DISTRIBUTOR AND A LEADING TECHNOLOGY SALES, MARKETING AND

LOGISTICS COMPANY FOR THE IT INDUSTRY WORLDWIDE. AS A VITAL LINK IN

THE TECHNOLOGY VALUE CHAIN, INGRAM MICRO CREATES SALES AND

PROFITABILITY OPPORTUNITIES FOR VENDORS AND RESELLERS THROUGH UNIQUE

MARKETING PROGRAMS, OUTSOURCED LOGISTICS SERVICES, TECHNICAL SUPPORT,

FINANCIAL SERVICES AND PRODUCT AGGREGATION AND DISTRIBUTION.

SINCE ITS BEGINNINGS IN 1979, INGRAM MICRO HAS CONNECTED TECHNOLOGY

SOLUTION PROVIDERS WITH VENDORS WORLDWIDE, IDENTIFYING MARKETS AND

TECHNOLOGIES THAT SHAPE THE IT INDUSTRY. TODAY, INGRAM MICRO REMAINS

AT THE FOREFRONT OF THE GLOBAL TECHNOLOGY MARKETPLACE, BRINGING THE

LATEST PRODUCTS AND SERVICES TO MARKET AND FINDING NEW WAYS TO BRING

VALUE TO ITS CUSTOMERS.

THE COMPANY SUPPORTS GLOBAL OPERATIONS THROUGH AN EXTENSIVE SALES AND

DISTRIBUTION NETWORK THROUGHOUT NORTH AMERICA, EUROPE, MIDDLE EAST AND

AFRICA (EMEA), LATIN AMERICA AND ASIA-PACIFIC:

* LOCAL SALES OFFICES AND/OR REPRESENTATIVES IN 36 COUNTRIES

* 103 DISTRIBUTION CENTERS WORLDWIDE

* REPRESENTING MORE THAN 1,300 VENDORS

* SERVING MORE THAN 180,000 RESELLERS IN APPROXIMATELY 150

  COUNTRIES

* PROVIDING SUPPORT THROUGH APPROXIMATELY 14,500 WORLD-WIDE

  ASSOCIATES

* THE ONLY GLOBAL BROAD-BASED IT DISTRIBUTOR IN ASIA

PRINCIPLE ACTIVITIES FOR SUBJECT:

* TRADING AND DISTRIBUTION OF COMPUTERS, COMPUTERS PERIPHERAL AND

  CONSUMABLES.

PRODUCTS

* ACCESSORIES & COMPONENTS PRESENTATION DEVICES

* AUDIO/VIDEO DEVICES PRINTERS & OFFICE EQUIPMENT

* CABLES SECURITY DEVICES

* COMMUNICATIONS SERVICES & WARRANTIES

* COMPUTER SYSTEMS SOFTWARE

* DISPLAYS STORAGE DEVICES

* IMAGING DEVICES SUPPLIES & MEDIA

* INPUT/OUTPUT DEVICES SYSTEM COMPONENTS

* NETWORK DEVICES TRAINING

* POS/ AIDC/ BARCODE PRODUCTS VIDEO GAMING

* POWER & RACK EQUIPMENT

NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT

GRANTED BY SUBJECT'S PERSONNEL.

REGISTERED AND BUSINESS ADDRESS:

205 KALLANG BAHRU

#1M-OO

MAYA PLASTIC BUILDING

SINGAPORE 339341

DATE OF CHANGE OF ADDRESS: 12/05/2010

- OWNED BY: INGRAM MICRO ASIA LTD

WEBSITE: WWW.INGRAMMICRO.COM

EMAIL  : -

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE:

1) STEPHEN JOHN PAINE, A BRITISH

   - BASED IN SINGAPORE

2) JAISHANKAR KRISHNAN, AN INDIAN

   - BASED IN INDIA

3) SHAILENDRA NARENDRA GUPTA, AN INDIAN

   -BASED IN SINGAPORE

4) NG WAI KONG A SINGAPOREN

   - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.

THE AGENTS AT THE TIME OF THIS REPORT ARE:

1) NG WAI KONG A SINGAPOREN

   - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.

2) ELLY THAM, A SINGAPOREN

   - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE

3) KLAAR LIDWINA EDUARD EYCKERMAN, A BELGIAN

   -BASED IN SINGAPORE

ADVERSE ON DIRECTORS

DIRECTORS'S NAME:                                            NG WAI KONG

ADVERSE REPORT AGAINST OWNER:  NOT AVAILABLE FROM OUR DATABASE

PROPERTY OWNERSHIP:                                     NIL

ANNUAL VALUE:                                                   N.A

CO-OWNER (S):                                                    N.A

AGENT'S NAME:                                                   ELLY THAM

ADVERSE REPORT AGAINST OWNER:  NOT AVAILABLE FROM OUR DATABASE

PROPERTY OWNERSHIP:                                     NIL

ANNUAL VALUE:                                                   N.A

CO-OWNER (S):                                                    N.A

*  ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF

IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER

REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER- OCCUPIED OR

VACANT

Investment Grade

THE SINGAPORE ECONOMY WAS SIGNIFICANTLY AFFECTED BY THE CRISIS DUE TO THE CONTRACTION OF EXPORTS, WHICH REPRESENT 210% OF GDP. SALES ABROAD OF MANUFACTURED PRODUCTS (ELECTRONICS, ENGINEERING, PHARMACEUTICALS, PETROCHEMICALS) AND SERVICES (FINANCIAL SERVICES, TOURISM, TRANSPORT) WERE AFFECTED BY THE WEAK PERFORMANCE OF THE MAIN TRADING PARTNERS (MALAYSIA, UNITED STATES, CHINA, JAPAN). WITH THE ECONOMY'S SLIDE INTO RECESSION, THE CENTRAL BANK REDUCED INTEREST RATES SEVERAL TIMES AND A STIMULUS PROGRAMME REPRESENTING 8% OF GDP WAS IMPLEMENTED IN JANUARY LAST YEAR. ALTHOUGH INCREASED PUBLIC SPENDING ON INFRASTRUCTURE, TRANSPORT, HEALTH AND EDUCATION ENABLED THE AUTHORITIES TO LIMIT THE CONTRACTION OF INVESTMENT, THAT DID NOT SUFFICE TO OFFSET THE DROP IN PRIVATE INVESTMENT. THE GOVERNMENT MOREOVER GRANTED DEFAULT GUARANTEES OF UP TO 80% ON NEW LOANS. AND HOUSEHOLD CONSUMPTION WAS SUPPORTED BY A REDUCTION OF INCOME TAX AND MEASURES TO FOSTER EMPLOYMENT.

IN Q1 2010, GROWTH REBOUNDED SIGNIFICANTLY (15.5% Y/Y). FOR THE ENTIRE YEAR, GROWTH IS EXPECTED TO REMAIN HIGH (8.9%) THANKS TO THE POSITIVE IMPACT ON DOMESTIC DEMAND OF THESE EXPANSIONARY MONETARY AND FISCAL POLICIES AND THE GRADUAL RECOVERY OF THE WORLD ECONOMY. INVESTMENT, CONSUMPTION, AND NET EXPORTS ARE AGAIN EXPECTED TO CONTRIBUTE POSITIVELY TO GROWTH. ON THE SUPPLY SIDE, THE CONSTRUCTION SECTOR WILL BENEFIT AGAIN THIS YEAR FROM INCREASED PUBLIC SPENDING WHILE ELECTRONICS, PHARMACEUTICALS, PETROCHEMICALS, FINANCIAL SERVICES, AND TOURISM WILL GRADUALLY RECOVER. THE COFACE PAYMENT MONITORING RECORDS ARE THUS EXPECTED TO REFLECT THIS FAVOURABLE TREND. SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA UNDERPINNED BY AN EFFECTIVE LEGAL SYSTEM THAT FACILITATES CLAIM COLLECTION AND A HIGH LEVEL OF FINANCIAL TRANSPARENCY.

STRONG FINANCIAL POSITION

DESPITE IMPLEMENTATION OF A BROAD STIMULUS PROGRAMME, THE COUNTRY CONTINUED TO RUN A SLIGHT FISCAL SURPLUS IN 2009, WHICH IS EXPECTED TO GROW IN 2010. PUBLIC SECTOR FINANCES HAVE THUS REMAINED SOLID.

DESPITE THE CONTRACTION OF THE CURRENT ACCOUNT SURPLUS, EXTERNAL ACCOUNTS ALSO REMAINED LARGELY IN SURPLUS LAST YEAR. IN 2010, THE CURRENT ACCOUNT SURPLUS WILL LIKELY REMAIN STABLE AS RESULT OF THE MORE RAPID RECOVERY OF IMPORTS COMPARED TO EXPORTS, ASSOCIATED WITH THE RISE OF RAW MATERIAL PRICES AND THE REBOUND OF DOMESTIC DEMAND. BESIDES, THE VOLATILITY OF PORTFOLIO INVESTMENT FLOWS THAT DEVELOPED AFTER THE LEHMAN BROTHERS BANKRUPTCY EASED IN 2009. IN 2010, THE HIGH LEVEL OF FOREIGN EXCHANGE RESERVES IS EXPECTED TO CONTINUE TO ENDOW THE COUNTRY WITH GOOD CAPACITY TO WITHSTAND SUDDEN CAPITAL.

MOREOVER, DESPITE THE INTERNATIONAL FINANCIAL TURMOIL AND THE EXPOSURE OF SOME BANKS TO SUBPRIMES AND LEHMAN BROTHERS, THE BANKING SYSTEM IS STILL SOLID THANKS TO SATISFACTORY RISK MANAGEMENT, EFFECTIVE OVERSIGHT, AND HIGH SOLVENCY AND LIQUIDITY RATIOS.

ASSETS

* VERY HIGH QUALITY-COMPETITIVENESS

* DEVELOPMENT OF HIGH VALUE-ADDED SECTORS (CHEMICALS, PHARMACEUTICALS, FINANCE)

* STRONG FDI INFLOWS THANKS TO AN ADVANTAGEOUS TAX REGIME, POLITICAL STABILITY AND AN EXCELLENT BUSINESS ENVIRONMENT

* MAJOR EXPORTER OF CAPITAL IN ASIA VIA THE PUBLIC HOLDING COMPANY TEMASEK

WEAKNESSES

* ECONOMY DEPENDENT ON FOREIGN DEMAND

* SHORTAGES OF SKILLED LABOUR

* AGEING POPULATION

* LATENT SOCIAL TENSIONS IN A CONTEXT OF INCREASING INEQUALITY AND GROWING DURABLE UNEMPLOYMENT AMONG THE LEAST SKILLED

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 18.0 IN 1Q 2010, FOLLOWING THE 1.5% GAIN IN 4Q 2009. IT IS ATTRIBUTED TO IMPROVEMENTS IN GLOBAL TRADE FLOWS.

DOMESTIC WHOLESALE TRADE INDEX

THE DOMESTIC WHOLESALE TRADE (SEASONALLY ADJUSTED) ROSE BY 1.8% IN 1Q 2010 OVER 4Q 2009, WITH IMPROVING SALES IN INDUSTRIAL AND CONSTRUCTION MACHINERY, GENERAL WHOLESALE TRADE AND CHEMICALS AND CHEMICAL PRODUCTS SECTORS, BUT PETROLEUM AND PETROLEUM PRODUCTS REGISTERED LOWER SALES. EXCLUDING PETROLEUM, OVERALL DOMESTIC SALES GREW BY 9.7%.

COMPARED TO THE SAME PERIOD A YEAR AGO, DOMESTIC WHOLESALE TRADE IN 1Q 2010 ROSE BY 37.1%, WITH HIGHER SALES REPORTED BY ALL WHOLESALE SECTORS. EXCLUDING PETROLEUM, DOMESTIC WHOLESALE TRADE GREW BY 26.9%.

AFTER REMOVING PRICE EFFECT, DOMESTIC WHOLESALE TRADE VOLUME SHOWED A RELATIVELY SMALLER YEAR-0N-YEAR INCREASE OF 9.4%. EXCLUDING PETROLEUM, DOMESTIC WHOLESALE TRADE GREW BY 17.9%.

ALL WHOLESALE SECTORS, EXCEPT PETROLEUM AND PETROLEUM PRODUCTS AND TIMBER, PAINTS AND CONSTRUCTION MATERIALS, REGISTERED POSITIVE GROWTHS IN DOMESTIC WHOLESALE TRADE IN 1Q 2010 COMPARED TO 4Q 2009 (AFTER SEASONAL ADJUSTMENT).

SECTORS THAT REGISTERED DOUBLE-DIGIT QUARTER-ON-QUARTER GROWTHS INCLUDED INDUSTRIAL AND CONSTRUCTION MACHINERY (25.7%), GENERAL WHOLESALE TRADE (24.5%) AND CHEMICALS AND CHEMICAL PRODUCTS (16.7%).

OTHER SECTORS SUCH AS TELECOMMUNICATIONS AND COMPUTERS, ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, FOOD, BEVERAGES AND TOBACCO AS WELL AS HOUSEHOLD EQUIPMENT AND FURNITURE RECORDED INCREASES OF BETWEEN 1.0% AND 5.7%.

PETROLEUM AND PETROLEUM PRODUCTS AND TIMBER, PAINTS AND CONSTRUCTION MATERIALS SECTORS REGISTERED DECLINES OF 3.0% AND 1.6% RESPECTIVELY IN DOMESTIC WHOLESALE TRADE OVER 4Q 2009.

ALL WHOLESALE SECTORS REGISTERED YEAR-ON-YEAR GROWTHS IN DOMESTIC WHOLESALE TRADE IN 1Q 2010.

DOMESTIC SALES OF GENERAL WHOLESALE TRADE, CHEMICALS AND CHEMICAL PRODUCTS AS WELL AS PETROLEUM AND PETROLEUM PRODUCTS SECTORS ROSE BY BETWEEN 54.6% AND 96.5% OVER THE SAME PERIOD A YEAR AGO. AFTER REMOVING PRICE EFFECT, THE SALES VOLUME OF GENERAL WHOLESALE TRADE AND CHEMICALS AND CHEMICAL PRODUCTS GREW BY 75.7% AND 25.2% RESPECTIVELY WHILE THAT OF PETROLEUM AND PETROLEUM PRODUCTS FELL BY 1.1%.

OTHER SECTORS THAT RECORDED DOUBLE-DIGIT YEAR-ON-YEAR GROWTHS IN DOMESTIC WHOLESALE TRADE INCLUDED ELECTRONIC COMPONENTS (33.1%), TELECOMMUNICATIONS AND COMPUTERS (26.4%), TRANSPORT EQUIPMENT (19.6%), HOUSEHOLD EQUIPMENT AND FURNITURE (17.3%), INDUSTRIAL AND CONSTRUCTION MACHINERY (16.0%), SHIP CHANDLERS AND BUNKERING (15.6%) AND TIMBER, PAINTS AND CONSTRUCTION MATERIALS (11.2%).

FOREIGN WHOLESALE TRADE INDEX

FOREIGN WHOLESALE TRADE (SEASONALLY ADJUSTED) ROSE BY 9.8% IN 1Q 2010 OVER 4Q 2009, WITH IMPROVEMENT IN SALES IN MOST OF THE WHOLESALE SECTORS. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE ROSE BY 7.4% OVER THE PREVIOUS QUARTER.

ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE TRADE GREW BY 37.8%, WITH STRONG GROWTHS IN MOST WHOLESALE SECTORS. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE ROSE BY 23.0%.

AFTER ADJUSTING FOR PRICE CHANGES, FOREIGN WHOLESALE TRADE VOLUME ROSE BY 9.8% FROM A YEAR AGO. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE VOLUME GREW BY 17.4%.

AFTER SEASONAL ADJUSTMENT, ALL WHOLESALE SECTORS REGISTERED POSITIVE QUARTER-ON-QUARTER GROWTHS IN FOREIGN WHOLESALE TRADE IN 1Q 2010, EXCEPT TIMBER, PAINT AND CONSTRUCTION MATERIALS, FOOD, BEVERAGES AND TOBACCO AND TELECOMMUNICATIONS AND COMPUTERS.

GENERAL WHOLESALE TRADE AND INDUSTRIAL AND CONSTRUCTION MACHINERY SECTORS REGISTERED DOUBLE-DIGIT INCREASES OF 15.5% AND 11.9% RESPECTIVELY IN FOREIGN WHOLESALE TRADE. SHIP CHANDLERS AND BUNKERING, HOUSEHOLD EQUIPMENT AND FURNITURE, PETROLEUM AND PETROLEUM PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS AND ELECTRONIC COMPONENTS SECTORS ALSO GREW BETWEEN 1.5% AND 5.4%.

FOREIGN SALES OF TIMBER, PAINTS AND CONSTRUCTION MATERIALS AND FOOD, BEVERAGES AND TOBACCO FELL BY 7.6% AND 4.8% RESPECTIVELY IN 1Q 2010.

OTHER THAN THE FOOD, BEVERAGES AND TOBACCO SECTOR WHICH REGISTERED A MARGINAL DROP OF 1.5%, ALL WHOLESALE SECTORS REGISTERED DOUBLE-DIGIT YEAR-ON-YEAR GROWTHS IN FOREIGN WHOLESALE TRADE.

PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING, CHEMICALS AND CHEMICAL PRODUCTS SECTORS REGISTERED HIGHER FOREIGN SALES OF BETWEEN 30.0% AND 60.6%. AFTER ADJUSTING FOR PRICE CHANGES, FOREIGN WHOLESALE TRADE VOLUME OF PETROLEUM AND PETROLEUM PRODUCTS AND CHEMICALS AND CHEMICAL PRODUCTS ROSE BY A SMALLER 1.8% AND 3.6% RESPECTIVELY WHILE THAT OF SHIP CHANDLERS AND BUNKERING FELL BY 0.1%.

OTHER SECTORS THAT REPORTED STRONG YEAR-ON-YEAR GROWTHS IN FOREIGN SALES INCLUDED HOUSEHOLD EQUIPMENT AND FURNITURE (48.4%), GENERAL WHOLESALE TRADE (41.6%), TRANSPORT EQUIPMENT (37.5%) AND TIMBER, PAINTS AND CONSTRUCTION MATERIALS (36.4%).

RETAIL SALES

RETAIL SALES VOLUME ROSE FOR THE FIRST TIME SINCE 3Q 2008 TO REACH 1.1%, REVERSING THE 4.1% DECLINE REGISTERED IN 4Q 2010. EXCLUDING MOTOR VEHICLE SALES, THE GROWTH WAS HIGHER AT 7.0%.

ALTHOUGH WEIGHED DOWN BY THE DECLINE OF MOTOR VEHICLE SALES (-13.0%), OTHER MAJOR RETAIL SEGMENTS, SUCH AS WATCHES AND JEWELLERY (14.0%), FURNITURE AND HOUSEHOLD EQUIPMENT (14.0%), WEARING APPAREL AND FOOTWEAR (10.0%), AND DEPARTMENT STORES (8.1%) POSTED STRONG GROWTH IN THE FIRST QUARTER OF 2010.

NEWS

MOTOR INDUSTRY SHAKE-UP

THE MOTOR INDUSTRY IS BRACING ITSELF FOR A SHAKE-UP. THIS IS BECAUSE NEW VEHICLE SALES COULD SINK BELOW 55,000 CARS THIS YEAR – LESS THAN HALF THE AVERAGE 117,000 IT MOVED OOUT OF SHOWROOMS IN EACH OF THE “FEAST” YEARS OF THE LAST DECADE.

RETRENCHEMENTS AND RESTRUCTURING ARE ON THE INDUSTRY’S HORIZON, IN RESPONSE TO THE NEW MARKET SIZE BROUGHT ON BY A SHARP CUT IN THE CERTIFICATE OF ENTITLEMENT (COE) SUPPLY, WHICH KICKED IN LAST MONTH.

MOTOR COMPANIES THAT HAVE BUILT NEW SHOWROOMS OR EXPANDED EXISTING ONES AND HIRED MORE SALES STAFF NOW FIND THEY HAVE TO SCALE BACK.

MR CHEAH KIM TECK, JARDINE CYCLE & CARRIAGE’S CHIEF EXECUTIVE FOR MOTOR OPERATIONS, SAID: “A SAD FACT OF THE TRADE IS WHEN THE MARKET WAS HOVERING AROUND 100,000 UNITS A YEAR, YOU HAD TO HAVE THE SALES PEOPLE. NOW YOU HAVE TO CUT.”

EVEN AS MOTOR FIRMS ARE LOOKING AT TRIMMING THEIR HEADCOUNTS, SOME SALES STAFF ARE ALREADY LEAVING FOR OTHER INDUSTRIES THAT ARE FARING WELL, SUCH AS THE REAL ESTATE, HOSPITALITY AND FINANCIAL SECTORS, SAID MR JESLIN TEO, CHIEF EXECUTIVE OF FIAT AGENT TTS EUROCARS.

THOSE WHO STAY ON IN SALES MAY WELL TAKE HOME SMALLER COMMISSIONS.

BMW AGENT PERFOMANCE MOTORS AND THE SINGAPORE MANUAL & MERCANTILE WORKERS’ UNION, FOR INSTANCE, RECENTLY AGREED ON A NEW COMMISSION PLAN.

A SENIOR SPOKESMAN FOR BORNEO MOTORS, WHICH DISTRIBUTES THE TOP-SELLING TOYOTA BRAND, SAID THE COE SQUEEZE WOULD HIT VOLUME-SELLES HARDER, BECAUSE “ A 40.0% DROP TO A FIRM

THAT SELLS 150 CARS A YEAR MEANS 60 CARS. BUT TO ONE THAT SELLS 10,000 CARS, IT’S 4,000”.

EVEN MR KARSONO KWEE, THE EXECUTIVE CHAIRMAN OF EUROKARS GROUP AND ONE OF THE MOST BULLISH MOTOR TRADERS IN SINGAPORE, SAID HE WILL ASSESS WHETHER THE GROUP NEEDS ALL THE SEVEN SHOWROOMS IT NOW HAS.

EUROKARS HOLDS THE ROLLS-ROYCE, MINI, PORSCHE, OPEL AND SAAB FRANCHISES.

BUT HE SAID HE WILL CONDUCT THE REVIEW ONLY IN 22 MONTHS, AFTE A MAJOR PROJECT TO HOUSE ROLLS=ROYCE AND PORSCHE IN A CITY SHOWROOM IS COMPLETED,”BECAUSS WE STILL NEED THE SPACE WHEN CONSTRUCTION IS GOING ON”.

THE GROUP HAS ALREADY RENTED OUT ITS FORMER OPEL SHOWROOM IN KAMPUNG UBI AND MOVED THE BRAND TO ONE OF ITS TOWN PREMISES.

BESIDES DOING A STOCK-TAKE ON THEIR INFRASTRUCTURE, MOTOR COMPANIES ARE ALSO REDEFINING THE SCOPE OF THEIR BUSINESS.

THE STRAITS TIMES UNDERSTANDS THAT BORNEO MOTORS, WHICH HAS SHUNNED THE USED-CAR TRADE SINCE 1998, WILL REVISIT THE SEGMENT SOON.

PARALLEL IMPORTERS, MANY OF WHOM WERE USED-CAR DEALERS BEFORE THE 1990S, ARE ALSO RETURNING TO THEIR FORMER TRADE NOW THAT THE COE SUPPLY IS DOWN.

MR RAYMOND TANG, THE SECRETARY OF THE SINGAPORE VEHICLE TRADERS ASSOCIATION, SAID: “THOSE WHO ARE STILL DOING PARALLEL IMPORTING HAVE SHIFTED THEIR FOCUS TO BIGGER CARS AND EUROPEAN BRANDS. THESE GIVE THEM BETTER MARGINS FOR COE BIDDING.”

THE BORNEO MOTORS SPOKESMAN NOTED THAT THE INDUSTRY SHAKE-UP WOULD ALSO HAVE A RIPPLE EFFECT ON BUSINESSES IN SUPPORTING INDSUTRIES – THOSE SUPPLYING CAR ACCESSORIES, LEATHER UPHOLSTERY AND THOSE THAT PROVIDE PRE-DELIVERY INSPECTIONS.

MR DAVID SIEW, THE PROPRIETOR OD TOMO-CSE, A LEADING SUPPLIER OF LEATHER UPHOLSTERY, SAID HE EXPECTS HIS BUSINESS HERE TO SHRINK BY AT LEAST 30.0% OVER THE NEXT SIX MONTHS.

MOTOR TRADERS FEEL THE COE SUPPLY COULD HAVE BEEN CUT MORE GRADUALLY.

MR MICHAEL WONG, THE VICE-PRESIDENT OF THE MOTOR TRADERS ASSOCIATION, SAID:”IN PREVIOUS IMPLEMENTATIONS OF POLICIES AND RULES, CHANGES WERE SPREAD OUT OVER TIME, SO IT WAS MORE GRADUAL.”

MR CHEAH AGREED, SAYING THE COE CUT MADE FOR A FAMINE AFTER THE FEAST.

HE SAID HE EXPECTED THE COE SUPPLY TO RETURN TO “SIZEABLE LEVELS BY 2013, BUT GETTING THROUGH THE NEXT THREE YEARS “WILL NOT BE EASY, ESPECIALLY FOR THE MARGINAL PLAYERS”.

OUTLOOK

A NET WEIGHTED BALANCE OF 44% OF WHOLESALERS EXPECT POSITIVE BUSINESS SENTIMENTS FOR THE PERIOD ENDING SEP 2010. IN PARTICULAR, THOSE DEALING WITH FOOD AND BEVERAGES, CHEMICALS AND CHEMICAL PRODUCTS, NON-AGRICULTURAL INTERMEDIATE PRODUCTS, INDUSTRIAL MACHINERY AND EQUIPMENT, AND COMPUTERS AND ACCESSORIES.

RETAILERS FORECAST LESS UPBEAT BUSINESS CONDITIONS FOR THE COMING MONTHS. A NET WEIGHTED BALANCE OF 18% OF RETAILERS FORECAST LESS FAVOURABLE BUSINESS PROSPECTS FOR THE PERIOD ENDING SEP 2010. THIS APPLIES TO DEPARTMENT STORES, SUPEMARKETS, RETAILERS OF MOTOR VEHICLES, COSMETICS AND TOILETRIES AND WEARING APPAREL AND FOOTWEAR.

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.44.45
UK Pound	1	Rs.71.59
Euro	1	Rs.63.01

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	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
--	NB	New Business	--

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.