MIRA INFORM REPORT

Report Date :

15.04.2011

IDENTIFICATION DETAILS

Name :	FIDA INT’L (S) PTE LTD
Formerly Known As :	FICHAIN INTERNATIONAL (S) PTE LTD
Registered Office :	16 Kallang Place #06-01/04, Singapore 339156
Country :	Singapore
Financials (as on) :	31.12.1999
Date of Incorporation :	30.04.1991
Com. Reg. No.:	199101937H
Legal Form :	Exempt Pte Ltd
Line of Business :	Specializes in a wide range of products of data communication, networking, wireless, display, backup ups and accessories providing effortless solutions for both wired and wireless networks

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

Maximum Credit Limit :	USD 48,000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
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	a1	a1

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

Subject Company

FIDA INT’L (S) PTE LTD

Line Of Business

 
SPECIALIZES IN A WIDE RANGE OF PRODUCTS OF DATA COMMUNICATION, NETWORKING, WIRELESS, DISPLAY, BACKUP UPS AND ACCESSORIES PROVIDING EFFORTLESS SOLUTIONS FOR BOTH WIRED AND WIRELESS NETWORKS

Parent Company

-

Financial Elements

FY 1999

COMPANY

Sales : S$6,942,615

Networth : S$154,767

Paid-Up Capital : S$100,000

Net result : S$3,922

Net Margin(%) : 0.06%

Return on Equity(%): 2.53%

Leverage Ratio : 15.1%

Rating

Credit Opinion : CREDIT LINE OF USD 48,000; TERMS: 60 DAYS O/A IS RECOMMENDED INSTEAD

COMPANY IDENTIFICATION

Subject Company :	FIDA INT'L (S) PTE LTD
Former Name :	FICHAIN INTERNATIONAL (S) PTE LTD DATE OF CHANGE : 06/07/1991
Business Address:	16 KALLANG PLACE #06-01/04
Town:	SINGAPORE
Postcode:	339156
Country:	Singapore
Telephone:	6357 0668
Fax:	6357 0669
ROC Number:	199101937H
Easy Number company:	00004505844529

PREVIOUS IDENTIFICATION

FICHAIN INTERNATIONAL (S) PTE LTD DATE OF CHANGE : 06/07/1991

SUMMARY

Legal Form:	Exempt Pte Ltd
Date Inc.:	30/04/1991
Summary year :	31/12/1999
All amounts in this report are in :	SGD
Sales:	6,942,615
Networth :	154,767
Capital:	200,000
Paid-Up Capital:	100,000
Employees:	15
Net result :	3,922
Share value:	1

AUDITOR

 
EDWIN TAY & CO. 
  
BASED ON ACRA'S RECORD 
 
  NO OF SHARES  CURRENCY  AMOUNT 
ISSUED ORDINARY  400,000  SGD  400,000.00
PAID-UP ORDINARY  -  SGD  400,000.00

REFERENCES

Update Date:	14/04/2011
Credit Requested:	USD 600,000; TERMS: 60 DAYS O/A
Credit Opinion:	CREDIT LINE OF USD 48,000; TERMS: 60 DAYS O/A IS RECOMMENDED INSTEAD

Litigation:	No
Company status :	TRADING
Started :	30/04/1991

PRINCIPAL(S)

HUANG LI-YU

S2609370H

Director

DIRECTOR(S)

TENG SEOK GOH	S2010054J	Company Secretary
Appointed on :	28/10/1998
Street :	17 JUBILEE ROAD
Town:	SINGAPORE
Postcode:	128549
Country:	Singapore

HUANG LI-YU	S2609370H	Director
Appointed on :	30/04/1991
Street :	152 PRINCE CHARLES CRESCENT #06-14 TANGLIN VIEW
Town:	SINGAPORE
Postcode:	159013
Country:	Singapore

WANG HSIAO TSU @ CHARLOTTE WANG	S2609371F	Director
Appointed on :	06/04/1998
Street :	152 PRINCE CHARLES CRESCENT #06-14 TANGLIN VIEW
Town:	SINGAPORE
Postcode:	159013
Country:	Singapore

CHIEN KANG-MIN	200481721	Director
Appointed on :	02/04/1993
Street :	NO. 38-3 GUGONG ROAD SHILIN DIS.,
Town:	TAIPEI 111
Country:	Taiwan, Province of China

FORMER DIRECTOR(S)

TAY HOE TONG @ TEY OH TOH

S0116615H

ACTIVITY(IES)

Activity Code:

11760

IMPORTERS And EXPORTERS

 
BASED ON ACRA'S RECORD 
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)

CHARGES

	AVAILABLE
Date:	23/03/2009
Amount:	0
Comments :	CHARGE NO : C200901746 AMOUNT SECURED : ALL MONIES OWING CHARGEE(S) : UNITED OVERSEAS BANK LIMITED

BANKERS

UNITED OVERSEAS BANK LIMITED

SHAREHOLDERS(S)

HUANG LI-YU

262,000

Private Person

Street :	152 PRINCE CHARLES CRESCENT #06-14 TANGLIN VIEW
Town:	SINGAPORE
Postcode:	159013
Country:	Singapore

CHIEN KANG-MIN

138,000

Private Person

Street :	NO. 38-3 GUGONG ROAD SHILIN DIS.,
Town:	TAIPEI 111
Country:	Taiwan, Province of China

PAYMENT HISTORY AND EXPERIENCES

Trade Morality:	AVERAGE
Liquidity :	UNKNOWN
Payments :	REGULAR
Trend :	LEVEL
Financial Situation:	UNKNOWN

FINANCIAL ELEMENTS

All amounts in this report are in :

SGD

Audit Qualification:	UNQUALIFIED (CLEAN) OPINION	UNQUALIFIED (CLEAN) OPINION
Date Account Lodged:	21/07/2000
Balance Sheet Date:	31/12/1999	31/12/1998
Number of weeks:	52	52
Consolidation Code:	COMPANY	COMPANY

ASSETS
Intangible Fixed Assets:	0	0
Tangible Fixed Assets:	101,179	109,325
Total Fixed Assets:	101,179	109,325
Inventories:	443,826	156,181
Receivables:	1,218,010	719,895
Cash,Banks, Securitis:	625,812	428,331
Other current assets:	102,240	55,845
Total Current Assets:	2,389,888	1,360,252
TOTAL ASSETS:	2,491,067	1,469,577
LIABILITIES
Equity capital:	100,000	100,000
Profit & lost Account:	54,767	50,845
Total Equity:	154,767	150,845
L/T deffered taxes:	10,800	7,971
Total L/T Liabilities:	10,800	7,971
Trade Creditors:	1,406,345	323,728
Prepay. & Def. charges:	919,155	969,932
Provisions:		17,101
Total short term Liab.:	2,325,500	1,310,761
TOTAL LIABILITIES:	2,336,300	1,318,732
PROFIT & LOSS ACCOUNT
Net Sales	6,942,615	8,028,234
NET RESULT BEFORE TAX:	6,751	40,031
Tax :	2,829	20,744
Net income/loss year:	3,922	19,287
Depreciation:	14,814	14,080
Directors Emoluments:	124,280	120,250
Financial Income:	13,262	7,138

RATIOS

Date Account Lodged:	31/12/1999	31/12/1998
Turnover per employee:	462841	535215.6
Net result / Turnover(%):	0	0
Stock / Turnover(%):	0.06	0.02
Net Margin(%):	0.06	0.24
Return on Equity(%):	2.53	12.79
Return on Assets(%):	0.16	1.31
Net Working capital:	64388	49491
Cash Ratio:	0.27	0.33
Quick Ratio:	0.79	0.88
Current ratio:	1.03	1.04
Receivables Turnover:	63.16	32.28
Leverage Ratio:	15.1	8.74

 
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 STATEMENT IN THIS REPORT IS THOSE OF 1999 AND IS 
CONSIDERED OUTDATED. HENCE, FINANCIAL ANALYSIS IS NOT CONDUCTED. THE 
FINANCIAL STATEMENT SERVES AS A REFERENCE ONLY. IN REPLACEMENT, 
ADVERSE CHECK ON ITS LOCAL DIRECTORS IS MADE.
 
EXEMPT PRIVATE COMPANY 
WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT OWNED BY ANY CORPORATE 
BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY IS 
KNOWN AS AN EXEMPT PRIVATE COMPANY.
 
AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER AMOUNT OF PRIVACY THAN A 
PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE 
REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS 
DIRECTORS, SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:
1. THE COMPANY IS AN EXEMPT PRIVATE COMPANY.  
2. THE AUDITED ACCOUNTS HAVE BEEN TABLED BEFORE THE SHAREHOLDERS 
AT THE ANNUAL GENERAL MEETING. 
3. THE COMPANY IS ABLE TO MEET ITS LIABILITIES.
THERE IS THEREFORE NO DISCLOSURE TO THE PUBLIC OF THE ACCOUNTS OF THE 
COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITED EVERY YEAR AND 
APPROVED AT AN ANNUAL GENERAL MEETING OF THE COMPANY. 
 
A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE GOVERNMENT MAY BECOME AN
EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN THE NATIONAL 
INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION. 
 

  
EXEMPT FROM AUDIT 
AN EXEMPT PRIVATE COMPANY IS EXEMPT FROM AUDIT REQUIREMENTS IF THE
STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31 MAY 
2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED $2.5 
MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT OF THE 
TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE STILL 
REQUIRED TO MAINTAIN PROPER ACCOUNTING.

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 
30/04/1991 AS A EXEMPT LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF 
"FICHAIN INTERNATIONAL (S) PTE LTD". 
  
SUBSEQUENTLY ON 06/07/1991, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE
OF "FIDA INT'L (S) PTE LTD". 
 
AS AT 16/02/2011, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 
400,000 SHARES, OF A VALUE OF S$400,000.
 
PRINCIPAL ACTIVITIES: 
SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY 
AUTHORITY (ACRA) BE PRINCIPALLY ENGAGED IN THE BUSINESS OF: 
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)
 
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED: 
  
BACKGROUND OF SUBJECT: 
FIDA INTERNATIONAL (S) PTE LTD HAS BEEN A PROVIDER OF TECHNOLOGICALLY 
INNOVATIVE AND USER-FRIENDLY PRODUCTS OF "PROLINK" SINCE 1991. WITH
MORE THAN A DECADE OF PROFESSIONAL EXPERIENCE IN THE INFO-COMMUNICATIONS 
SECTOR, PROLINK® SPECIALIZES IN A WIDE RANGE OF PRODUCTS OF DATA COMMUNICATION, NETWORKING, WIRELESS, DISPLAY, BACKUP UPS AND ACCESSORIES PROVIDING EFFORTLESS 
SOLUTIONS FOR BOTH WIRED AND WIRELESS NETWORKS.
 
THEIR QUEST FOR CONTINUOUS IMPROVEMENT AND QUALITY ASSURANCE TO THE 
CUSTOMER HAS EARNED THEM THE ISO 9001 QUALITY CERTIFICATION SINCE 
1999. AND THEY WILL CONTINUE THIS TRADITION TO PROVIDE OUR CUSTOMERS 
WITH QUALITY AND AFFORDABLE PRODUCTS.
 
OVER THE YEARS, PROLINK® HAS BUILT ITS PRESENCE THROUGH A STRONG 
FOUNDATION OF TECHNOLOGICAL LEADERSHIP IN THE SOUTH-EAST ASIA AND 
SOUTH ASIA REGION AND IS CONTINUING TO BUILD ITS PRESENCE IN OTHER 
VARIOUS MARKETS. WITH SALES OFFICES IN 18 COUNTRIES IN THE SOUTH-EAST
ASIA AND SOUTH ASIA REGION, PROLINK® WILL CONTINUE TO PROVIDE  
EFFORTLESS AND ECONOMICAL SOLUTIONS THAT MEET THE NEEDS OF THE HOME 
AND SMALL BUSINESS USERS WITHIN EACH GEOGRAPHICAL LOCATION. 
 
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:
* COMPUTING AND IT SERVICES 
 
PRODUCTS DEALINGS: 
* LAPTOP AND NETBOOK  
- GLEE NETBOOK
- GLEE LAPTOP 
- TOUCH TABLET PC 
* COMMUNICATION  
- DATACOM 
- NETWORKING
- WIRELESS NETWORKING 
- FIBER NETWORKING 
- VOIP  
* DISPLAY MONITOR 
- CRT MONITOR
- LCD MONITOR 
- TOUCH SCREEN LCD  
* POWER BACKUP 
- LINE INTERACTIVE UPS 
- ONLINE UPS
- INVERTER 
- DC UPS  
* GADGETS 
- MOUSE 
- KEYBOARDS
- WEBCAMS  
- CARD READER 
- USB HUB 
 
MARKET PRESENCE:
* FIDA INT'L (S) PTE LTD - SINGAPORE 
* FIDA SYSTEMS (M) SDN BHD - MALAYSIA 
* PROLINK INDONESIA - INDONESIA 
* FIDA INTERNATIONAL (USA) INC. - UNITED STATES OF AMERICA
 
FROM THE TELE-INTERVIEW CONDUCTED ON 14/04/2011, THE FOLLOWING WAS GATHERED: 
 
SUBJECT CONFIRMED ITS BUSINESS ADDRESS, EMAIL, WEBSITE AND FAX NUMBER.
 
NO OTHER TRADE INFORMATION IS AVAILABLE ON 14/04/2011. 
 
REGISTERED AND BUSINESS ADDRESS: 
16 KALLANG PLACE 
#06-01/04
SINGAPORE 339156 
DATE OF CHANGE OF ADDRESS: 01/10/2007 
- PROPERTY RECORD WAS NOT AVAILABLE  
 
ADDRESS PROVIDED BY CLIENT:
BLOCK 16 KALLANG PLACE 
#06-02 KALLANG BASIN INDUS  
SINGAPORE 339156 
- BUSINESS ADDRESS AS CONFIRMED VIA TELEINTERVIEW
 
WEBSITE:  http://www.prolink2u.com 
 
EMAIL:  sales@fida.com 

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE: 
 
1) CHIEN KANG-MIN, A TAIWANESE  
 - BASED IN TAIWAN.
 
2) HUANG LI-YU, A SINGAPOREAN 
 - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE. 
  
3) WANG HSIAO TSU @ CHARLOTTE WANG, A SINGAPOREAN 
 - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.

ADVERSE ON DIRECTORS

DIRECTOR'S NAME:  HUANG LI-YU 
ADVERSE REPORT  AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE 
PROPERTY OWNERSHIP:  OWNS 1 
ANNUAL VALUE:  S$34,800 
CO-OWNER (S):  WANG HSIAO TSU @ CHARLOTTE WANG
  
DIRECTOR'S NAME:  WANG HSIAO TSU @ CHARLOTTE WANG 
ADVERSE REPORT AGAINST DIRECTOR:  NOT AVAILABLE FROM OUR DATABASE 
PROPERTY OWNERSHIP:  OWNS 1  
ANNUAL VALUE:  S$34,800
CO-OWNER (S):  HUANG LI-YU 
 
* 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.

Singapore’s Country Rating 2010

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 19.0 IN 2Q 2010, FOLLOWING THE 17.0% GAIN IN 1Q 2010. IT IS ATTRIBUTED TO IMPROVEMENTS IN GLOBAL TRADE FLOWS.

DOMESTIC WHOLESALE TRADE INDEX

THE DOMESTIC WHOLESALE TRADE (SEASONALLY ADJUSTED) DECLINED BY 1.4% IN 2Q 2010 OVER 1Q 2010, WITH LOWER SALES IN CHEMICALS AND CHEMICAL PRODUCTS, INDUSTRIAL AND CONSTRUCTION MACHINERY. EXCLUDING PETROLEUM, OVERALL DOMESTIC SALES FELL BY 3.4%.

COMPARED TO THE SAME PERIOD A YEAR AGO, DOMESTIC WHOLESALE TRADE IN 2Q 2010 ROSE BY 15.1%, WITH HIGHER SALES REPORTED BY ALL SECTORS EXCEPT INDUSTRIAL AND CONSTRUCTION MACHINERY SECTOR. EXCLUDING PETROLEUM, DOMESTIC WHOLESALE TRADE GREW BY 20.0%.

AFTER REMOVING PRICE EFFECT, DOMESTIC WHOLESALE TRADE VOLUME SHOWED A RELATIVELY SMALLER YEAR-0N-YEAR INCREASE OF 1.3%. EXCLUDING PETROLEUM, DOMESTIC WHOLESALE TRADE GREW BY 15.4%.

MOST SECTORS REGISTERED QUARTER-ONP-QUARTER DECLINES IN DOMESTIC WHOLESALE TRADE AFTER SEASONAL ADJUSTMENT.

CHEMICALS AND CHEMICAL PRODUCTS AND INDUSTRIAL AND CONSTRUCTION MACHINERY SECTORS RECORDED DECREASES OF 14.0% AND 9.0% RESPECTIVELY. PETROLEUM AND PETROLEUM PRODUCTS, ELECTRONIC COMPONENTS, FOOD, BEVERAGES AND TOBACCO AND GENERAL WHOLESALE TRADE SECTORS ALSO RECORDED DECLINES OF BETWEEN 1.8% AND 5.0% IN THEIR DOMESTIC SALES.

ON THE OTHER HAND, TIMBER, PAINTS AND CONSTRUCTION MATERIALS AND TELECOMMUNICATIONS AND COMPUTERS SECTORS, RECORDED POSITIVE QUARTER-ON-QUARTER GROWTHS OF 3.7% AND 0.9% RESPECTIVELY.

ALL WHOLESALE SECTORS, WITH THE EXCEPTION OF INDUSTRIAL AND CONSTRUCTION MACHINERY, REPORTED YEAR-ON-YEAR GROWTHS IN DOMESTIC WHOLESALE TRADE IN 2Q 2010.

GENERAL WHOLESALE TRADE SECTOR REGISTERED A STRONG POSITIVE GROWTH OF 63.7% IN ITS DOMESTIC SALES, COMPARED TO 2Q 2009. OTHER SECTORS THAT EXPERIENCED DOUBLE-DIGIT YEAR-ON-YEAR INCREASES IN DOMESTIC WHOLESALE TRADE INCLUDE ELECTRONIC COMPONENTS (25.4%), TELECOMMUNICATIONS AND COMPUTERS (23.0%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (21.3%), CHEMICALS AND CHEMICAL PRODUCTS (19.6%), SHIP CHANDLERS AND BUNKERING (15.9%) AND HOUSEHOLD EQUIPMENT AND FURNITURE (10.4%).

DOMESTIC SALES OF THE INDUSTRIAL AND CONSTRUCTION MACHINERY SECTOR DECLINED SLIGHTLY BY 3.0% COMPARED TO 2Q 2009.

FOREIGN WHOLESALE TRADE INDEX

COMPARED TO 1Q 2010, FOREIGN WHOLESALE TRADE (SEASONALLY ADJUSTED) GREW 3.1% IN 2Q 2010, WITH MOST OF THE WHOLESALE SECTORS REGISTERING HIGHER SALES. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE ROSE BY 4.4% QUARTER-ON-QUARTER.

ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE TRADE GREW BY 28.8%, WITH STRONG GROWTHS IN MOST WHOLESALE SECTORS. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE ROSE BY 18.8%.

AFTER ADJUSTING FOR PRICE CHANGES, FOREIGN WHOLESALE TRADE VOLUME ROSE BY 13.7% YEAR-ON-YEAR. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE VOLUME GREW BY 14.1%.

AFTER SEASONAL ADJUSTMENT, ALL WHOLESALE SECTORS REGISTERED POSITIVE QUARTER-ON-QUARTER GROWTHS IN FOREIGN WHOLESALE TRADE IN 2Q 2010.

TIMBER, PAINT AND CONSTRUCTION MATERIALS AND PETROLEUM AND PETROLEUM PRODUCTS POSTED DOUBLE-DIGIT GROWTHS OF 31.4% AND 12.6% RESPECTIVELY IN FOREIGN WHOLESALE TRADE.

FOREIGN SALES OF HOUSEHOLD EQUIPMENT AND FURNITURE, CHEMICALS AND CHEMICAL PRODUCTS, INDUSTRIAL AND CONSTRUCTION MACHINERY AND FOOD, BEVERAGES AND TOBACCO ALSO ROSE BETWEEN 4.0% AND 8.0%.

FOREIGN SALES OF SHIP CHANDLERS AND BUNKERING SECTOR FELL BY 1.7% OVER 1Q 2010.

OTHER THAN THE FOOD, BEVERAGES AND TOBACCO SECTOR WHICH REGISTERED A MARGINAL DROP OF 2.1%, 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 23.5% AND 42.3%. AFTER ADJUSTING FOR PRICE CHANGES, FOREIGN WHOLESALE TRADE VOLUME OF PETROLEUM AND PETROLEUM PRODUCTS AND CHEMICALS AND CHEMICAL PRODUCTS AND SHIP CHANDLERS AND BUNKERING ROSE BY A SMALLER 13.3%, 6.3% AND 1.3% RESPECTIVELY.

OTHER SECTORS THAT REPORTED STRONG YEAR-ON-YEAR GROWTHS IN FOREIGN SALES INCLUDED

TIMBER, PAINTS AND CONSTRUCTION MATERIALS (60.0%), INDUSTRIAL AND CONSTRUCTION MACHINERY (35.1%), TRANSPORT EQUIPMENT (30.7%), TELECOMMUNICATIONS AND COMPUTERS (23.1%) AND HOUSEHOLD EQUIPMENT AND FURNITURE (22.2%).

RETAIL SALES

RETAIL SALES VOLUME FELL BY 5.7% IN 2Q 2010, REVERSING THE 1.1% GROWTH REGISTERED IN 1Q 2010. EXCLUDING MOTOR VEHICLE SALES, THE GROWTH WAS LOWER AT 4.8%.

ALTHOUGH WEIGHED DOWN BY THE DECLINE OF MOTOR VEHICLE SALES (-33.0%), OTHER MAJOR RETAIL SEGMENTS, SUCH AS FURNITURE AND HOUSEHOLD EQUIPMENT (11.0%), WEARING APPAREL AND FOOTWEAR (9.9%), WATCHES AND JEWELLERY (7.7%), AND DEPARTMENT STORES (6.2%)

POSTED STRONG GROWTH IN 2Q 2010.

NEWS

TOURISTS BOOST JULY RETAIL SALES

A SURGE IN TOURIST NUMBERS HAS BEEN GOOD NEWS FOR LOCAL SHOP OWNERS AS RETAIL SPENDING BOUNCED BACK IN JULY AFTER A FIVE-MONTH SLUMP.

SHOPPERS SPENT MORE ON SMALLER ITEMS IN JULY, AND CAR SALES, WHILE STILL WEAK, BECAME LESS OF A DRAG ON OVERALL SPENDING.

THE MONTHLY RETAIL SALES INDEX JUMPED 3.2% IN JULY FROM JUNE, ENDING FIVE MONTHS OF DECLINE, IN MONTH-ON-MONTH TERMS, SINCE FEBRUARY. THE MOST RECENT SLIDE, IN JUNE, WAS 0.7%.

COMPARED TO A YEAR EARLIER, THE INDEX SHRANK A SMALLER-THAN-EXPECTED 1.2% IN JULY, AFTER JUNE’S 5.0% DECLINE. A BLOOMBERG NEWS SURVEY OF SEVEN ECONOMISTS HAD FORECAST A 2.7% YEAR-ON-YEAR DECLINE.

SHOPPERS WERE IN A BULLISH MOOD. THEY BOUGHT MORE APPAREL AND FOOTWEAR, MEDICAL GOODS AND TOILETRIES, AND WATCHES AND JEWELLERY, WHICH HELPED OFFSET A FALL IN CAR SALES, SAID THE DEPARTMENT OF STATISTICS, WHICH PUBLISHED THE FIGURES YESTERDAY.

SALES OF CLOTHES AND SHOES ROSE 10.5% YEAR-0N-YEAR, MEDICAL GOODS ROSE 12.3% AND WATCHES AND JEWELLERY 16.9%.

HSBC ECONOMISTS FREDERIC NEUMANN AND KIM SONG YI WROTE IN A REPORT THAT IT IS “LOOKING GOOD ON ORCHARD”.

“FOREIGN VISITORS ARE FUELLING THE BOOM WITH RECORD ARRIVALS RECORDED IN JULY. THESE ARE INCREASINGLY COMING FROM CHINA, AND ARE HELPING TO SUBSTAIN RETAIL SALES IN SINGAPORE AND BEYOND.”

CITIGROUP ECONOMIST KIT WEI ZHENG SAID: “VISITOR ARRIVALS HAVE BEEN GROWING IN THE DOUBLE-DIGITS SINCE THE START OF THIS YEAR AND JULY ARRIVALES CROSSED THE ONE-MILLION MARK FOR THE FIRST TIME.”

STILL, THE OVERALL INDEX STAYED IN DECLINE BECAUSE OF A SMALLER SUPPLY OF CAR CERTIFICATES OF ENTITLEMENT (COEs) WHICH SLOWED DOWN CAR SALES. MOTOR VEHICLE SALES, WHICH MAKE UP A THIRD OF THE INDEX – THE LARGEST PART – FELL 24.8% IN JULY FROM A YEAR EARLIER. THIS WAS LESS THAN JUNE’S 32.3% DECLINE.

STANDARD CHARTERED ECONOMIST ALVIN LIEW SAID: POOR CAR SALES ARE LIKELY TO WEIGH DOWN ON THE HEADLINE RETAIL GROWTH.

“ALTHOUGH THE LATEST DATA SEEM TO SUGGEST THAT THE IMPACT MAY BE WANING, WE NOTE THE SKY-ROCKETING COE PRIES COULD HURT CAR SALES AGAIN IN THE SUBSEQUENT MONTHS.

OUTLOOK

A NET WEIGHTED BALANCE OF 37% OF WHOLESALERS EXPECT POSITIVE BUSINESS SENTIMENTS FOR THE PERIOD ENDING DEC 2010. IN PARTICULAR, THOSE DEALING WITH FOOD AND BEVERAGES, COSMETICS AND TOILETRIES, INDUSTRIAL MACHINERY AND EQUIPMENT, ELECTRONIC COMPONENTS, COMPUTERS AND ACCESSORIES, AND MOTOR VEHICLES.

RETAILERS PREDICT MORE UPBEAT BUSINESS CONDITIONS FOR THE COMING MONTHS. A NET WEIGHTED BALANCE OF 29% OF RETAILERS FORECAST MORE FAVOURABLE BUSINESS PROSPECTS FOR THE PERIOD ENDING DEC 2010. THIS APPLIES TO DEPARTMENT STORES, RETAILERS OF WEARING APPAREL AND JEWELLERY AND WATCHES.

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.44.48
UK Pound	1	Rs.72.37
Euro	1	Rs.64.42

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

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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