MIRA INFORM REPORT

Report Date :

11^th November, 2006

IDENTIFICATION DETAILS

Name :	ADANI GLOBAL PTE LTD
Registered Office :	^3 Shenton Way, #19-08, Shenton House, Singapore
Country :	^Singapore
Financials (as on) :	31/12/2004
Date of Incorporation :	^08/04/2000
Com. Reg. No.:	^200003047N
Legal Form :	^Pte Ltd
Line of Business :	General merchants, importers and exporters, commission agents and manufacturer's representative

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

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

ADANI GLOBAL PTE LTD

Line Of Business 

GENERAL MERCHANTS, IMPORTERS AND EXPORTERS, COMMISSION AGENTS AND

MANUFACTURER'S REPRESENTATIVE.

Parent Company

ADANI GLOBAL LTD (PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2004

COMPANY

Sales : S$615,944,592

Networth : S$10,282,403

Paid-Up Capital : S$8,850,000

Net result : S$634,884

Net Margin(%) : 0.10

Return on Equity(%) : 6.17

Leverage Ratio : 8.73

Rating

Credit Requested : -

Credit Rating : Singapore $ 10000001 to Singapore $ 50000000

Credit Opinion : -

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

^{Subject Company: ADANI GLOBAL PTE LTD}

^{Former Name: -}

^{Business Address: 3 SHENTON WAY}

^#19-08

^{SHENTON HOUSE}

^{Town: SINGAPORE}

^{Postcode: 068805}

^{County: -}

^{Country: Singapore}

^{Telephone: 6225 2070}

^{Fax: 6225 2537}

^{ROC Number: 200003047N}

^{Reg. Town: -}

SUMMARY

^{Legal Form: Pte Ltd}

^{Date Inc.: 08/04/2000}

^{Previous Legal Form: -}

^{Summary year: 31/12/2004}

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

^{Sales: 615,944,592}

^{Networth: 10,282,403}

^{Capital: 10,000,000}

^{Paid-Up Capital: 8,850,000}

^{Employees: NOT AVAILABLE}

^{Net result: 634,884}

^{Share value: 1}

^{Auditor: TONY OEI & COMPANY}

REFERENCES

^{CCMS Number: 702004937384}

^{Report Date: 27/06/2006}

¹⁹⁸²²

^{Update Date: 27/06/2006}

^{Credit Requested: -}

^{Credit Opinion: -}

^{Litigation: No}

^{Company status: TRADING}

^{Started : 08/04/2000}

PRINCIPAL(S)

^{VINOD SHANTILAL SHAH S2648276C Director}

DIRECTOR(S)

^{SEE GUAT NGO S1287660B Company Secretary}

^{Appointed on: 18/04/2000}

^{Street: 613 CLEMENTI WEST STREET 1}

^#07-350

^{Town: SINGAPORE}

^{Postcode: 120613}

^{Country: Singapore}

^{VINOD SHANTILAL SHAH S2648276C Director}

^{Appointed on: 05/05/2000}

^{Street: 75 MEYER ROAD}

^#17-01

^{Town: SINGAPORE}

^{Postcode: 437901}

^{Country: Singapore}

^{PRADEEP MITTAL E9442640 Director}

^{Appointed on: 25/08/2005}

^{Street: 84 NAVRANG, BASANT 8TH FLOOR}

^{COLABA, MAHARASHTRA}

^{Town: MUMBAI}

^{Postcode: 400005}

^{Country: India}

FORMER DIRECTOR(S)

^{CHANG CHUNG-LING F2411912L}

^{SHAH BAVIK BHARATKUMAR M039025}

^{JOSEPH SELVAMALAR S0089626H}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code: 11760}

^{COMMISSION MERCHANTS Code: 4990}

^{TRADING COMPANIES Code: 22190}

^{COMMODITY TRADERS Code: 5010}

^{BASED ON ACRA'S RECORD AS AT 23/05/2006}

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

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

CHARGES

^{Date: 15/12/2005}

^{Comments: CHARGE NO: C200507749}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: MALAYAN BANKING BHD}

^{Date: 12/12/2005}

^{Comments: CHARGE NO: C200507645}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: MALAYAN BANKING BHD}

^{Date: 09/12/2005}

^{Comments: CHARGE NO: C200507620}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: UNITED OVERSEAS BANK LTD}

^{Date: 18/11/2005}

^{Comments: CHARGE NO: C200507163, C200507162}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEEBANK B.A.}

^{Date: 16/11/2005}

^{Comments: CHARGE NO: C200507088, C20057087}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK, FRANKFURT}

^{Date: 01/08/2005}

^{Comments: CHARGE NO: C200504478}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: DBS BANK LTD}

^{Date: 30/12/2004}

^{Comments: CHARGE NO: C200406727}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: UFJ BANK LTD}

^{Date: 20/10/2004}

^{Comments: CHARGE NO: C200405202, C200405199}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: NATEXIS BANQUES POPULAIRES}

^{Date: 28/05/2004}

^{Comments: CHARGE NO: C200402570}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: KBC BANK N.V.}

^{Date: 17/02/2004}

^{Comments: CHARGE NO: 200400778}

^{SECURED: 0.00 AND ALL MONINES OWING}

^{CHARGEE: MOSCOW NARODNY BANK LTD}

^{Date: 09/02/2004}

^{Comments: CHARGE NO: C200400664}

^{SECURED: 0.00 AND ALL MNOIES OWING}

^{CHARGEE: MOSCOW NARODNY BANK LTD}

^{Date: 30/01/2004}

^{Comments: CHARGE NO: C200400567}

^{SECURED: 0.00 AND ALL MONIE OWING}

^{CHARGEE: RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT}

^{Date: 14/10/2003}

^{Comments: CHARGE NO: C200304857}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: SUMITOMO MITSU BANKING CORPORATION SINGAPORE BRANCH}

^{Date: 13/10/2003}

^{Comments: CHARGE NO: C200304851}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: SUMITOMO MITSU BANKING CORPORATION SINGAPORE BRANCH}

^{Date: 24/09/2003}

^{Comments: CHARGE NO: C200304561 (DISCHARGED)}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: ABSA BANK LTD}

^{Date: 26/04/2003}

^{Comments: CHARGE NO: C200301859}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: NEDBANK LTD}

^{Date: 18/07/2001}

^{Comments: CHARGE NO: 200103311, 200103310}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: BANK OF INDIA}

^{Date: 06/07/2001}

^{Comments: CHARGE NO: 200103081, 200103080, 200103079}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: SOCIETE GENERALE}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{MOSCOW NARODNY BANK LIMITED}

^{RAIFFEISEN ZENTRALBANK OESTERREICH AKTIENGESELLSCHAFT}

^{SUMITOMO MITSUI BANKING CORPORATION SINGAPORE BRANCH}

^{ABSA BANK LIMITED}

^{NEDBANK BANK LTD, SINGAPORE BRANCH}

^{BANK OF INDIA}

^{SOCIETE GENERALE}

^{KBC BANK N V}

^{COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK BA}

^{DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK, FRANKFURT}

SHAREHOLDERS(S)

^{ADANI GLOBAL LTD 8,850,000 Company}

^{Street: P O BOX 1130}

^{REMI OLLIER ST}

^{PORT LOUIS}

^{Town: -}

^{Postcode: -}

^{Country: Mauritius}

HOLDING COMPANY

^{ADANI GLOBAL LTD UF28100C %: 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: UPWARD}

^{Financial Situation: AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 18/05/2005}

^{Balance Sheet Date: 31/12/2004 31/12/2003 31/12/2002}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 12,259 12,289 19,184}

^{Total Fixed Assets: 12,259 12,289 19,184}

^{Inventories: 1,431,122 - -}

^{Receivables: 84,549,788 26,395,875 24,301,865}

^{Cash, Banks, Securities: 14,061,111 9,647,955 7,360,699}

^{Other current assets: 38,517 1,323,394 32,862}

^{Total Current Assets: 100,080,538 37,367,224 31,695,426}

^{TOTAL ASSETS: 100,092,797 37,379,513 31,714,610}

^{--- LIABILITIES}

^{Equity capital: 8,850,000 8,850,000 8,850,000}

^{Profit & loss Account: 1,432,403 797,519 353,962}

^{Total Equity: 10,282,403 9,647,519 9,203,962}

^{Trade Creditors: 58,970,829 24,810,136 21,414,048}

^{Due to Bank: 19,045,683 1,377,089 945,888}

^{Provisions: 146,000 111,950 49,000}

^{Other Short term Liab.: 11,647,882 1,432,819 101,712}

^{Total short term Liab.: 89,810,394 27,731,994 22,510,648}

^{TOTAL LIABILITIES: 89,810,394 27,731,994 22,510,648}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 615,944,592 376,952,149 230,048,455}

^{Gross Profit: 4,403,095 2,436,110 1,851,739}

^{Result of ordinary operations 3,482,681 1,972,872 1,533,267}

^{NET RESULT BEFORE TAX: 780,558 552,157 258,112}

^{Tax: 145,674 108,600 47,443}

^{Net income/loss year: 634,884 443,557 210,669}

^{Interest Paid: 2,702,123 1,420,715 1,275,155}

^{Depreciation: 9,362 6,895 12,284}

^{Directors Emoluments: 92,250 90,000 75,000}

^{Wages and Salaries: 389,836 195,783 167,638}

^{Financial Income: 91,826 62,692 67,621}

RATIOS

^{31/12/2004 31/12/2003 31/12/2002}

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

^{Net Margin(%): 0.10 0.12 0.09}

^{Return on Equity(%): 6.17 4.60 2.29}

^{Return on Assets(%): 0.63 1.19 0.66}

^{Net Working capital: 10,270,144.00 9,635,230.00 9,184,778.00}

^{Cash Ratio: 0.16 0.35 0.33}

^{Quick Ratio: 1.10 1.30 1.41}

^{Current ratio: 1.11 1.35 1.41}

^{Receivables Turnover: 49.42 25.21 38.03}

^{Leverage Ratio: 8.73 2.87 2.45}

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

Net Working capital : Total current assets - Total short term liabilities

Cash Ratio : Cash Bank securities/Total short term liabilities

Quick Ratio : (Cash Bank securities + Receivables)/Total Short term liabilities

Current ratio : Total current assets/Total short term liabilities

Inventory Turnover : (360*Inventories)/Net sales

Receivables Turnover : (Receivable*360)/Net sales

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

FINANCIAL COMMENTS

THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:

NET WORTH:

THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 6.58% FROM S$9,647,519 TO S$10,282,403. THIS WAS DUE TO A SIGNIFICANT INCREASE IN ACCUMULATED PROFITS BY 79.61% TO S$1,432,403 IN FY 2004 (2003: S$797,519).

LEVERAGE:

IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 65.66% (2003: 89.46%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$58,970,829 IN FY 2004 (2003: S$24,810,136). THE BREAKDOWN IS AS FOLLOWS:

-DUE TO RELATED PARTIES – 2004: S$12,424,989 (2003: S$NIL)

-DUE TO ULTIMATE HOLDING COMPANY – 2004: S$NIL (2003: S$14,762,894)

-DUE TO OUTSIDE PARTIES – 2004: S$46,545,840 (2003: S$10,047,242)

IN ADDITION TO TRADE CREDITORS, SUBJECT WAS ALSO FINANCED BY AMOUNT DUE TO BANK (IE BILLS PAYABLE) WHICH AMOUNTED TO S$19,045,683 IN FY 2004 (2003: S$1,377,089).

OTHER SHORT-TERM LIABILTIES OF S$11,647,882 (2003: S$1,432,819) CONSISTED OF:

-OTHER CREDITORS AND ACCRUALS – 2004: S$11,586,813 (2003: S$1,367,781)

-AMOUNT DUE TO A DIRECTOR – 2004: S$61,069 (2003: S$65,038)

IN ALL, LEVERAGE RATIO ROSE TO 8.73 TIMES, UP FROM 2.87 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.

LIQUIDITY:

IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN ITS NET WORKING CAPITAL. NET WORKING CAPITAL ROSE BY 6.59% FROM S$9,635,230 TO S$10,270,144 IN FY 2004.

HOWEVER, QUICK RATIO FELL FROM 1.30 TIMES TO 1.10 TIMES AND CURRENT RATIO DECLINED TO 1.11 TIMES, DOWN FROM 1.35 TIMES.

SUBJECT'S CASH AND CASH EQUIVALENT INCREASED BY 45.74% TO S$14,061,111 (2003: S$9,647,955 AND COMPRISED THE FOLLOWING:

-BANK FIXED DEPOSITS - 2004: S$12,190,251 (2003: S$8,487,549)

-CASH AND BANK BALANCES - 2004: S$1,870,860 (2003: S$1,160,406)

PROFITABILITY:

REVENUE POSTED A SIGNIFICANT INCREASE OF 63.40% FROM S$376,952,149 TO S$615,944,592 AND THIS LED TO A RISE IN NET PROFIT FROM S$443,557 TO S$634,884 IN FY 2004--AN IMPROVEMENT OF 43.13% THE PRIOR FINANCIAL YEAR. NET MARGIN WAS REDUCED FROM 0.12% TO 0.10% IN FY

2004.

ADMINISTRATIVE EXPENSES ROSE MARKED BY 92.47% (2004: S$1,012,240; 2003: S$1,972,872) AND FINANCE COSTS OF S$2,702,123 (2003: S$1,420,715).

DEBT SERVICING:

DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, INTEREST COVERAGE WAS SUFFICIENT AT 1.40 TIMES (2003: 1.61 TIMES).

NOTES TO THE FINANCIAL STATEMENTS:

BILLS PAYABLE:

THE BILLS PAYABLE IS SECURED BY THE COMPANY'S FIXED DEPOSIT AND GUARANTEED BY THE DIRECTORS.

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 08/04/2000 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "ADANI GLOBAL PTE LTD".}

^{AS AT 23/05/2006, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 8,850,000 SHARES OF A VALUE OF S$8,850,000.}

^{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 AND EXPORTERS)}

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TO CARRY ON BUSINESS AS GENERAL MERCHANTS, IMPORTERS AND EXPORTERS, COMMISSION AGENTS AND MANUFACTURER'S REPRESENTATIVE.}

^{FROM THE RESEARCH DONE, SUBJECT IS LISTED IN THE LOCAL DIRECTORIES AS AN INTERNATIONAL COMMODITIES TRADING BUSINESS. IT IS AN IMPORTERS, EXPORTERS, TRADERS & COMMISSION AGENTS FOR BULK PRODUCTS SUCH AS PETROLEUM, PETROCHEMICALS, COAL, AGRO COMMODITIES, SUGAR, WHEAT, SOYABEAN MEAL, CASTOR OIL ETC.}

^{PRODUCT CATEGORIES:}

^{*AGRO-PRODUCTS, COAL & COKE PRODUCTS, TEXTILES, FERTILIZERS & STEEL SCRAP, MARINE}

^{PRODUCTS, PETROCHEMICALS, PETROLEUM OIL & LUBRICANTS, ETC.}

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

^{*SINGAPORE CHINESE CHAMBER OF COMMERCE & INDUSTRY}

^{ABOUT ADANI EXPORTS LIMITED:}

^{*THE FLAGSHIP COMPANY OF THE ADANI GROUP AND IS ACTIVELY INVOLVED IN GLOBAL TRADING BUSINESS.}

^{*HEAD OFFICE IN AHMEDABAD, ADANI EXPORTS LIMITED HAS EXTENDED ITS ACTIVITIES ACROSS}

^{THE GLOBE. TODAY, ADANI EXPORTS LIMITED HAS SEVERAL BRANCH OFFICES IN INDIA &}

^{ABROAD (SINGAPORE, VIETNAM, DUBAI, DHAKA, AFRICA ETC.)}

^{*ADANI EXPORTS LIMITED COMMENCED ITS OPERATION IN 1988, DRIVEN BY THE DESIRE "TO}

^{BECOME THE LEADER IN TRADING BUSINESS"}

^{*HAS ACHIEVED A 1000 FOLD GROWTH FROM RS 2.2 CRORE IN 1988-89 TO RS. 2900 CRORE IN}

^1999-2000.

^{*ADANI EXPORTS LIMITED EXPORTS OVER 40 COMMODITIES TO OVER 55 COUNTRIES}

^{*PRODUCT PORTFOLIO ALSO INCLUDES IRON ORE, FERTILISER RAW MATERIALS AND SEVERAL OTHER ITEMS.}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 26/05/2006, IT WAS REVEALED THAT THERE ARE 3 PERSONS EMPLOYED IN THE BUSINESS. NO OTHER TRADE INFORMATION WAS MADE AVAILABLE.}

^{THE COMPANY'S IMMEDIATE HOLDING COMPANY IS ADANI GLOBAL LIMITED, INCORPORATED IN MAURITIUS. THE ULTIMATE HOLDING COMPANY IS ADANI EXPORTS LIMITED, INCORPORATED IN INDIA.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{*2004: NOT AVAILABLE (2003: 3; 2002: 3; 2001: 3)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{3 SHENTON WAY}

^#19-08

^{SHENTON HOUSE}

^{SINGAPORE 068805}

^{DATE OF CHANGE OF ADDRESS: 18/10/2000}

^{- RENTED PREMISE}

^{- OWNED BY: PUSHKARRAI B DESAI AND ASHVIN BAPULAL DESAI}

^{YOUR PROVIDED NUMBER:}

^*6423104

^{--INVALID NUMBDER AS CONFIRMED VIA TELE-INTERVIEW. ALSO, THERE IS A SHORTAGE OF ONE}

^{DIGIT. THE CORRECT NUMBER SHOULD BE 6423 1040/1.}

^WEBSITE:

^{www.adanigroup.com (HOLDING COMPANY'S)}

^EMAIL:

^{adani@pacific.net.sg}

^{sales@adani.com.sg}

^{basheer@adanigroup.com}

MANAGEMENT

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

^{1) PRADEEP MITTAL, AN INDIAN}

^{- BASED IN INDIA.}

^{2) VINOD SHANTILAL SHAH, A SINGAPORE PERMANENT RESIDENT}

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

Singapore’s Country Rating 2006

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION APPEARS TO BE VERY STABLE.

ECONOMIC GROWTH IS BECOMING MORE MODERATE AS INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND FOR ELECTRONIC PRODUCTS.

ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE’S STRONG FINANCIAL CONDITION.

AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITS POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR’S SHARE HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND BIOTECHNOLOGIES.

ASSETS

· ONE OF THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR ROLE IN ITS PERFORMANCE.

· ONE OF ASIA’S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS TERMS.

· WORKFORCE’S EDUCATION AND SKILL LEVEL IS VERY HIGH.

· A MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING COMPANY, TEMASEK.

· THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.

· GREAT POLITICAL STABILITY.

WEAKNESSES

· ECONOMY REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.

· MUST ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER OTHER ASIAN ECONOMIES

· REFORMS ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM MODERNIZATION.

· AGING POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

WITH THE BOOST FROM THE STRONG GROWTH PERFORMANCE OF NON-OIL RE-EXPORTS AND RETAIL SALES, THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY A HEALTHY 8.0% IN 3Q2005, EASING SLIGHTLY FROM THE 8.7% GROWTH REGISTERED IN 2Q2005.

WHOLESALE TRADE

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE INDEX ROSE BY 20.5% OVER THE SAME PERIOD A YEAR AGO. EXCLUDING PETROLEUM, THE INDEX ROSE BY 8.9%.

THE RISE WAS ATTRIBUTED TO SHIP CHANDLERS & BUNKERING AND WHOLESALE TRADE OF PETROLEUM & PETROLEUM PRODUCTS WITH 40% INCREASE. THE HIGHER SALES WERE MAINLY DUE TO OIL PRICE INCREASES.

DOMESTIC SALES OF CHEMICALS & CHEMICAL PRODUCTS ROSE BY 18.1%, CONTRIBUTED MAINLY BY THE WHOLESALING OF PETROCHEMICAL PRODUCTS. SALES OF TELECOMMUNICATIONS & COMPUTERS, INDUSTRIAL & CONSTRUCTION MACHINERY, TIMBER, PAINTS AND CONSTRUCTION MATERIALS ALSO POSTED RISES IN 3Q2005.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE SLIGHTLY BY 1.9% IN 3Q2005 OVER 3Q2004. EXCLUDING PETROLEUM, IT WAS 3.6% HIGHER THAN A YEAR AGO.

ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A RISE OF 10.7% IN 3Q2005.

EXCLUDING PETROLEUM, THE INDEX ROSE MODERATELY BY 4.1%.

THERE WERE VARIOUS SECTORS WHICH CONTRIBUTED TO THE OVERALL IMPROVEMENT, INCLUDING SHIP CHANDLERS & BUNKERING, WHOLESALING OF PETROLEUM & PETROLEUM PRODUCTS, TELECOMMUNICATIONS & COMPUTERS AND CHEMICALS & CHEMICAL PRODUCTS.

IN CONTRAST, FOOD, BEVERAGES & TOBACCO AND GENERAL WHOLESALE TRADE FELL SIGNIFICANTLY BY 17.7% AND 15.1% RESPECTIVELY.

FOREIGN WHOLESALE TRADE INDEX

AS COMPARED TO 3Q2004, THE OVERALL FOREIGN WHOLESALE TRADE FOR 3Q2005 ROSE BY 22%. EXCLUDING PETROLUEM, THE INDEX ROSE BY 10.2%.

SIMILAR TO THE DOMESTIC SALES, OVERSEAS SALES OF SHIP CHANDLERS & BUNKERING AND WHOLESALERS OF PETROLEUM & PETROLEUM PRODUCTS ROSE SUBSTANTIALLY BY 50.3% AND 38.6% OVER 3Q2004, MAINLY DUE TO THE HIGHER OIL PRICES.

FOLLOWING EIGHT SUCCESSIVE QUARTERS OF DOUBLE-DIGIT GROWTHS, SALES OF CHEMICALS & CHEMICAL PRODUCTS INCREASED SLIGHTLY BY 2.5% IN 3Q2005.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 7.6% IN 3Q2005 OVER 3Q2004. EXCLUDING PETROLEUM, IT WAS UP BY 10.8%.

IN COMPARISON TO 2Q2005, THE OVERALL INDEX FOR 3Q2005 REGISTERED A RISE OF 9.9%. EXCLUDING PETROLEUM, THE GROWTH WAS LOWER AT 5.7%.

STRONG GROWTH WERE REPORTED IN WHOLESALE SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS & BUNKERING AND PETROLEUM & PETROLEUM PRODUCTS.

AHEAD

AN OVERALL NET BALANCE OF 22% OF FIRMS IN THE SERVICES SECTOR IS OPTIMISTIC ABOUT THE BUSINESS OUTLOOK FOR THE NEXT 3 MOTNHS ENDING MARCH 2006. THE MAGNITUDE IS SLIGHTLY LOWER COMPARED TO THAT REGISTERED IN THE PERIOD OF JULY-DECEMBER 2005 (26%), AND ALSO LOWER THAN THE 30% NET BALANCE RECORDED FOR OCTOBER 2004 – MARCH 2005.

AN OVERALL NET BALANCE OF 8% OF WHOLESALERS PREDICTS POSITIVE BUSINESS CONDITIONS FOR THE COMING MONTHS. THOSE DEALING IN ELECTRONIC COMPONENTS, TELECOMMUNICATIONS EQUIPMENT AND COSMETICS & TOILETRIES ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

BLOOMBERG

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/normal.	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

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