MIRA INFORM REPORT

Report Date :

01.03.2011

IDENTIFICATION DETAILS

Name :	AV MEDIA PTE LTD
Registered Office :	2023 Bukit Batok Industrial Park A #02-106 Street 23, Singapore, 659528
Country :	Singapore
Date of Incorporation :	14.11.1992
Legal Form :	Exempt Pte Ltd
Line of Business :	Installation, Testing, Commissioning, Service and Maintenance of Audio/Video Equipment; Importer, Exporter and Wholesalers of Audio Equipment and Products.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	US$100,000
Status :	Moderate
Payment Behaviour :	Regular
Litigation :	Exists

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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
Singapore	A1	A1

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

Company name

AV MEDIA PTE LTD

Line Of Business

 
INSTALLATION, TESTING, COMMISSIONING, SERVICE AND MAINTENANCE OF AUDIO/VIDEO EQUIPMENT; IMPORTER, EXPORTER AND WHOLESALERS OF AUDIO EQUIPMENT AND PRODUCTS  

Parent Company

--

Financial Elements

Sales : -

Networth : -

Paid-Up Capital : S$250,000

Net result : -

Net Margin(%) : -

Return on Equity(%) : -

Leverage Ratio : -

Rating

Credit Requested : US$100,000; TERMS: O/A 45

Credit Opinion : CREDIT LINE OF US$29,000; TERMS: O/A 45 DAYS IS RECOMMENDED

INSTEAD

COMPANY IDENTIFICATION

Subject Company :	AV MEDIA PTE LTD
Business Address:	2023 BUKIT BATOK INDUSTRIAL PARK A #02-106 STREET 23
Town:	SINGAPORE
Postcode:	659528
Country:	Singapore
Telephone:	6569 2123
Fax:	6569 6589
ROC Number:	199206138H
Easy Number company:	00000404955659

SUMMARY

Legal Form:	Exempt Pte Ltd
Date Inc.:	14/11/1992
Summary year :
All amounts in this report are in :	SGD
Sales:
Capital:
Paid-Up Capital:	250,000
Employees:	21
Net result :
Share value:

 
AUDITOR : STRATEGIC AUDIT ALLIANCE PAC  
 
BASED ON ACRA'S RECORD 
  NO OF SHARES  CURRENCY  AMOUNT 
ISSUED ORDINARY  250,000   SGD  250,000.00
PAID-UP ORDINARY  -  SGD    250,000.00

REFERENCES

Credit Opinion:

CREDIT LINE OF US$29,000; TERMS: O/A 45 DAYS IS RECOMMENDED INSTEAD

Litigation:	YES
Company status :	TRADING
Started :	14/11/1992

PRINCIPAL(S)

TAN SENG LING

S1512536E

Director

DIRECTOR(S)

NEO LAY HIANG PAMELA	S1464993Z	Company Secretary
Appointed on :	24/11/1995
Street :	28 JALAN JORAN SELETAR HILLS ESTATE
Town:	SINGAPORE
Postcode:	809095
Country:	Singapore

TAN SENG LING	S1512536E	Director
Appointed on :	14/11/1992
Street :	52 BUKIT BATOK STREET 31 #03-09 THE MADEIRA
Town:	SINGAPORE
Postcode:	659443
Country:	Singapore

OH GEOK PING	S6846590G	Director
Appointed on :	29/06/2002
Street :	308 JURONG EAST STREET 32 #04-264
Town:	SINGAPORE
Postcode:	600308
Country:	Singapore

TAN CHUAN HUAT	S6928203B	Director
Appointed on :	29/06/2002
Street :	172 BUKIT BATOK WEST AVENUE 8 #22-341
Town:	SINGAPORE
Postcode:	650172
Country:	Singapore

FORMER DIRECTOR(S)

TEE TENG NGEN	F1176299U
TAN BENG BOK	S1778331I

ACTIVITY (IES)

Activity Code:	11760	IMPORTERS And EXPORTERS
Activity Code:	1230	AUDIO-VISUAL EQUIPMENT And SUPPLIES

 
BASED ON ACRA'S RECORD 
1. GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); 
 INSTALLATION, TESTING, COMMISIONING, SERVICE & MAINTENANCE OF 
 AUDIO/VIDEO EQUIPMENT 
2. REPAIR OF AUDIO AND VIDEO EQUIPMENT (EG TV SETS, RADIOS, TAPE
 RECORDERS AND PLAYERS); 
 IMPORTERS/EXPORTERS/WHOLESALERS OF AUDIO EQUIPMENT & RELATED 
 PRODUCTS

CHARGES

	AVAILABLE
Date:	05/08/2009
Amount:	0
Comments :	CHARGE NO : C200904809 AMOUNT SECURED : ALL MONIES OWING CHARGEE(S) : UNITED OVERSEAS BANK LIMITED

	AVAILABLE
Date:	24/05/2005
Amount:	0
Comments :	CHARGE NO: C200502927 AMOUNT SECURED : ALL MONIES OWING CHARGEE(S): OVERSEA-CHINESE BANKING CORPORATION LIMITED

	AVAILABLE
Date:	02/11/2004
Amount:	0
Comments :	CHARGE NO: C200405451 AMOUNT SECURED : ALL MONIES OWING CHARGEE(S): DBS BANK LIMITED

	NOT AVAILABLE
Date:	30/06/2004
Amount:	0
Comments :	CHARGE NO: C200403131 (DISCHARGED) AMOUNT SECURED : ALL MONIES OWING CHARGEE(S): STANDARD CHARTERED BANK

	NOT AVAILABLE
Amount:	0
Comments :	CHARGE NO: C200405275 (DISCHARGED - 11/10/2005) AMOUNT SECURED : ALL MONIES OWING CHARGEE(S): MALAYAN BANKING BHD

BANKERS

DBS BANK LTD.

OVERSEA-CHINESE BANKING CORPORATIONLIMITED

SHAREHOLDERS(S)

TAN SENG LING

225,000

Private Person

Street :	52 BUKIT BATOK STREET 31 #03-09 THE MADEIRA
Town:	SINGAPORE
Postcode:	659443
Country:	Singapore

OH GEOK PING

12,500

Private Person

Street :	308 JURONG EAST STREET 32 #04-264
Town:	SINGAPORE
Postcode:	600308
Country:	Singapore

TAN CHUAN HUAT

12,500

Private Person

Street :	172 BUKIT BATOK WEST AVENUE 8 #22-341
Town:	SINGAPORE
Postcode:	650172
Country:	Singapore

FORMER SHAREHOLDER(S)

TEE TENG NGEN

57,500

TAN BENG BOK

82,500

PAYMENT HISTORY AND EXPERIENCES

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

LITIGATION(S)

Type Of Case:	High Court - W/S
Case Number:	HWS00006/2008
Defendant	AV MEDIA PTE LTD	ROC # : 199206138H

Type Of Case:	Magistrate Court - W/S
Case Number:	MCS21585/2006
Defendant	AV MEDIA PTE LTD	ROC # : 199206138H

Type Of Case:	Magistrate Court - W/S
Case Number:	MCS20940/2006
Defendant	AV MEDIA PTE LTD	ROC # : 199206138H

Type Of Case:	Magistrate Court - W/S
Case Number:	MCS00478/2005
Defendant	AV MEDIA PTE LTD	ROC # : 199206138H

Type Of Case:	Magistrate Court - W/S
Case Number:	MCS30971/2002
Defendant	AV MEDIA PTE LTD	ROC # : 199206138H

FINANCIAL COMMENTS

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 
14/11/1992 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER 
ITS PRESENT NAMESTYLE AS "AV MEDIA PTE LTD". 
  
AS AT 21/02/2011, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF
250,000 SHARES OF A VALUE OF S$250,000. 
 
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 & EXPORTERS); 
 INSTALLATION, TESTING, COMMISIONING, SERVICE & MAINTENANCE OF 
  AUDIO/VIDEO EQUIPMENT 
2) REPAIR OF AUDIO AND VIDEO EQUIPMENT (EG TV SETS, RADIOS, TAPE 
 RECORDERS AND PLAYERS);
 IMPORTERS/EXPORTERS/WHOLESALERS OF AUDIO EQUIPMENT & RELATED 
 PRODUCTS  
 
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:
 
BACKGROUND OF THE SUBJECT:  
AV MEDIA PTE LTD WAS FOUNDED IN SINGAPORE IN 1989. DURING THOSE DAYS, 
AV MEDIA WAS A SYSTEM INSTALLER (SI) FOR MAINLY THE AUDIO VISUAL (AV) 
CLASSROOMS FOR LOWER AND HIGHER EDUCATION. FROM A SMALL AND HUMBLE 
BEGINNING, THE MANAGEMENT'S VISION OF A TOTAL INTEGRATED AV SOLUTION
FOR THE EDUCATION SECTOR PROPELLED AV MEDIA INTO A GROUP OF COMPANIES 
THAT COVERS MANUFACTURING AND SYSTEM INSTALLATION. 
 
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES: 
* INSTALLATION, TESTING, COMMISSIONING, SERVICE AND MAINTENANCE OF
 AUDIO/VIDEO EQUIPMENT 
* IMPORTER, EXPORTER AND WHOLESALERS OF AUDIO EQUIPMENT AND PRODUCTS 
 
PRODUCTS DEALINGS: 
* LCD PROJECTORS & COMPUTER DISPLAYS
* AV SYSTEMS & PRESENTATION ROOMS 
* AV PRODUCTS, FURNITURE & SCREENS 
* ODM/OEM MOUNTING PRODUCT 
* ODM/OEM DISTRIBUTION AMPLIFIER & PROJECTOR CONTROLLER SWITCHERS
 
SERVICES CENTER 
* SERVICE DEPARTMENT 
* EXTENDED WARRANTIES 
* SERVICE CONTRACTS  
* REPAIR & MAINTENANCE
* PARTS & ACCESSORIES 
* SYSTEMS INSTALLATIONS 
* EQUIPMENT  
 
TECHNICAL SUPPORT
* SOFTWARE (APPLICATIONS) 
* USER MANUAL 
* CATALOGUE 
* BROCHURES
 
BRANDS (PRODUCTS): 
 
ABTUS  
* LCD PROJECTOR MOUNT 
* PLASMA MOUNT
* LCD MOUNT 
  
PROJECTOR CONTROLLER SWITCHER 
* DISTRIBUTION AMPLIFIER 
* CAT 5 EXTENDER
 
PANASONIC  
* WIRELESS PROJECTOR 
* HOME THEATER PROJECTOR
LUMENS 
* VISUALIZERS  
 
SANHA 
* WAISTBAND AMPLIFIER
* PORTABLE WIRELESS PA SYS.  
* WIRELESS LECTURE AMP. 
 
CREATOR 
* CONTROL SYSTEMS
* TOUCH PANEL 
* KEYPADS & CONTROL PANEL 
* NTERFACE & AUTOMATIONL 
* MATRIX SWITCHERS  
* DISTRIBUTION & CONVERTERS
* TWISTED PAIR DIST AMPLIFIER 
 
ACESSORY  
* CABLES 
* PROJECTION SCREEN
   
AGENTS FOR: 
* KINDERMANN GMBH (DE) 
* WOLFVISION GMBH (AT) 
* BOSSMEN INC. (TW)
* SANHA KAIMER GMBH & CO.KG (DE) 
* AMMA TECHNOLOGY CORP (TW) 
* LUMENS TECHNOLOGY INC (TW) 
 
TRADE NAMES:
* KINDERMANN  OVERHEAD PROJECTORS (DE)  
* WOLFVISION VIDEO CAMERA SYSTEMS (AT) 
* BOSSMEN  ELECTRONIC DAMP PROOF CABINET (TW) 
* SANHA  PORTABLE WIRELESS PA SYSTEMS (DE) 
* LUMENS  VISUALISER (TW)
* AMMA  CONTROL SYSTEM (TW) 
 
MARKETS: 
* SOUTH EAST ASIA  
* CHINA
* OCEANIA 
* MIDDLE EAST 
* UNITED STATES OF AMERICA 
* CANADA
 
PARTNER: 
* CREATOR CHINA IN EUROPEAN MARKET 
 
INDUSTRIES SERVED:
INSTRUCTIONAL TECHNOLOGY 
* CLASSROOMS 
* LECTURE HALLS 
* AUDITORIUMS FROM ELEMENTARY TO UNIVERSITY 
 LEVEL
 
CORPORATE SOLUTION 
* BOARDROOMS 
* CONFERENCE ROOMS, AND OTHER CORPORATE VENUES
 
RETAIL AND THEMED ENTERTAINMENT 
* UPSCALE SHOPPING 
* THEMED DINING 
* DIGITAL SIGNAGE 
* CONSUMER KIOSKS
* MULTIMEDIA ENTERTAINMENT VENUES 
 
GOVERNMENT SOLUTION  
* LOCAL GOVERNMENT 
* EMERGENCY OPERATIONS CENTERS
* AEROSPACE INSTALLATIONS 
* OTHER PUBLIC AGENCIES  
 
OVERSEAS OFFICES: 
* MALAYSIA
* TAIWAN 
* CHINA 
* UNITED STATES OF AMERICA 
 
NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT
GRANTED BY SUBJECT'S PERSONNEL 
 
NO OTHER TRADE INFORMATION WAS MADE AVAILABLE 
REGISTERED AND BUSINESS ADDRESS:  
2023 BUKIT BATOK INDUSTRIAL PARK A 
#02-106 STREET 23 
SINGAPORE 659528 
DATE OF CHANGE OF ADDRESS: 02/08/1999
- PROPERTY RECORD WAS NOT AVAILABLE 
 
WEBSITE:  http://www.avmedia.com.sg  
EMAIL :  enquiries@avmedia.com.sg 
  avm@avmedia.com.sg 

MANAGEMENT

THE DIRECTORS AT THE TIME OF THE REPORT ARE: 
 
1) TAN SENG LING, A SINGAPOREAN 
 - HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.
 
2) OH GEOK PING, A SINGAPOREAN 
 - HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.  
 
3) TAN CHUAN HUAT, A SINGAPOREAN
 - HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.

ADVERSE ON DIRECTORS

DIRECTOR'S NAME: TAN SENG LING 
ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE 
PROPERTY OWNERSHIP: OWNS 1 
ANNUAL VALUE: S$16,800 
CO-OWNER: NIL
  
DIRECTOR'S NAME: OH GEOK PING 
ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE 
PROPERTY OWNERSHIP: OWNS 1 
ANNUAL VALUE: S$6,900
CO-OWNER: NIL 
 
DIRECTOR'S NAME: TAN CHUAN HUAT 
ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE 
PROPERTY OWNERSHIP: OWNS 1
ANNUAL VALUE: S$7,800 
CO-OWNER: TAN SIEW SIAN 
  
* 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 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.45.18
UK Pound	1	Rs.72.78
Euro	1	Rs.62.15

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 Company	----

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