MIRA INFORM REPORT

Report Date :

03.04.2007

IDENTIFICATION DETAILS

Name :	DU PONT COMPANY (SINGAPORE) PTE. LTD.
Registered Office :	^1 Harbourfront Place, #11-01, Harbourfront Tower 1, Singapore – 098633
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	19/08/2002
Com. Reg. No.:	200207203C
Legal Form :	Pte Ltd
Line of Business :	Manufacture and Sale of Chemical Products

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

DU PONT COMPANY (SINGAPORE) PTE. LTD.

Line Of Business

MANUFACTURE AND SALE OF CHEMICAL PRODUCTS

Parent Company

E.I. DU PONT DE NEMOURS AND COMPANY

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2005

COMPANY

Sales : USD382,436,000

Networth : USD-45,521,000

Paid-Up Capital : USD13,800,000

Net result : USD30,158,000

Net Margin(%) : 7.89

Return on Equity(%) : -66.25

Leverage Ratio : -4.89

Rating

Credit Rating : Up To Sing $ 10000

COMPANY IDENTIFICATION

^{Subject Company: DU PONT COMPANY (SINGAPORE) PTE. LTD.}

^{Former Name: -}

^{Business Address: 1 HARBOURFRONT PLACE}

^#11-01

^{HARBOURFRONT TOWER 1}

^{Town: SINGAPORE}

^{Postcode: 098633}

^{County: -}

^{Country: Singapore}

^{Telephone: 6586 3688}

^{Fax: 6272 7494}

^{ROC Number: 200207203C}

^{Reg. Town: -}

SUMMARY

^{All amounts in this report are in: USD unless otherwise stated}

^{Legal Form: Pte Ltd}

^{Date Inc.: 19/08/2002}

^{Previous Legal Form: --}

^{Summary year: 31/12/2005}

^{Sales: 382,436,000}

^{Net worth: -45,521,000}

^{Capital: 50,000,000}

^{Paid-Up Capital: 13,800,000}

^{Employees: Not Available}

^{Net result: 30,158,000}

^{Share value: 1}

^{Auditor: PRICEWATERHOUSECOOPERS}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 19/08/2002}

PRINCIPAL(S)

^{HO HSING CHAN S2173034C Managing Director}

DIRECTOR(S)

^{KOH KIAN TECK PETER S0017705I Director}

^{Appointed on: 19/08/2002}

^{Street: 56 HONG LEE PLACE}

^{Town: SINGAPORE}

^{Postcode: 548882}

^{Country: Singapore}

^{ROHAIZAN MUSTAFFA S0226808F Director}

^{Appointed on: 19/08/2002}

^{Street: 75 FARRER DRIVE}

^#11-04

^{SOMMERVILLE PARK}

^{Town: SINGAPORE}

^{Postcode: 259281}

^{Country: Singapore}

^{LIM CHER TONG S2550549B Director}

^{Appointed on: 19/08/2002}

^{Street: 946 JURONG WEST STREET 91}

^#06-661

^{Town: SINGAPORE}

^{Postcode: 640946}

^{Country: Singapore}

^{HO HSING CHAN S2173034C Managing Director}

^{Appointed on: 20/05/2005}

^{Street: 15 LEWIS ROAD}

^{Town: SINGAPORE}

^{Postcode: 258600}

^{Country: Singapore}

^{HO HSING CHAN S2173034C Director}

^{Appointed on: 20/05/2005}

^{Street: 15 LEWIS ROAD}

^{Town: SINGAPORE}

^{Postcode: 258600}

^{Country: Singapore}

^{LIM I-AN S7107421H Company Secretary}

^{Appointed on: 29/07/2005}

^{Street: 57A DUCHESS AVENUE}

^{Town: SINGAPORE}

^{Postcode: 269122}

^{Country: Singapore}

^{LIM CHOON MUI S7044728B Company Secretary}

^{Appointed on: 01/09/2006}

^{Street: 52 CHOA CHU KANG NORTH 6}

^#12-21

^{YEW MEI GREEN}

^{Town: SINGAPORE}

^{Postcode: 689575}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{KOH KIAN TECK PETER S0017705I}

^{LEE LI LIN S1175101F}

^{CHONG BOO CHING S1461682I}

^{LEE HWEE KOON S2195942A}

ACTIVITY(IES)

^{CHEMICALS Code:3970}

^{MEDICINES - PATENT And PROPRIETARY - WHSLE And MFR Code:13700}

^{RESEARCH Code:18410}

^{BUSINESS SERVICES Code:4}

^{BASED ON ACRA'S RECORD AS AT 29/01/2007}

^{1) MANUFACTURE OF PHARMACEUTICAL, BIOLOGICAL INTERMEDIATES AND FINE CHEMICALS FOR}

^{HUMAN USE PRODUCTS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

No Banker Information In Our Database

SHAREHOLDERS(S)

^{E.I. DU PONT DE NEMOURS AND COMPANY 24,007,862 Company}

^{Street: 1007 MARKET STRRET}

^WILMINGTON

^DELAWARE

^{Town: USA}

^{Postcode: 19898}

^{Country: United States}

HOLDING COMPANY

^{E.I. DU PONT DE NEMOURS AND COMPAN UF31169Z %: 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: LACKING}

^{Payments: REGULAR}

^{Trend: UPWARD}

^{Financial Situation: BAD}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

^{All amounts in this report are in: USD unless otherwise stated}

^{Audit Qualification:"MILD" UNCERTAINTIES GOING CONCERN QUALIF GOING CONCERN QUALIF}

^{Date Account Lodged: 01/11/2006}

^{Balance Sheet Date: 31/12/2005 31/12/2004 31/12/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 39,825,000 45,036,000 50,169,000}

^{Total Fixed Assets: 39,825,000 45,036,000 50,169,000}

^{Raw material & supplies: - - 9,481,000}

^{Work in progress: - - 3,000}

^{Finished Goods: - - 30,002,000}

^{Inventories: 37,008,000 35,263,000 -}

^{Receivables: 65,280,000 55,430,000 46,133,000}

^{Cash,Banks,Securities: 27,771,000 51,070,000 8,996,000}

^{Other current assets: 7,383,000 9,566,000 7,209,000}

^{Total Current Assets: 137,442,000 151,329,000 101,824,000}

^{TOTAL ASSETS: 177,267,000 196,365,000 151,993,000}

^{--- LIABILITIES}

^{Equity capital: 13,800,000 13,800,000 13,800,000}

^{Profit & loss Account: -59,321,000 -89,479,000 -67,585,000}

^{Total Equity: -45,521,000 -75,679,000 -53,785,000}

^{Other long term Liab.: 1,864,000 2,361,000 139,782,000}

^{Total L/T Liabilities: 1,864,000 2,361,000 139,782,000}

^{Trade Creditors: 40,698,000 44,861,000 53,283,000}

^{Prepay. & Def. charges: 9,145,000 6,809,000 5,964,000}

^{Short term liabilities: 446,000 388,000 315,000}

^{Due to Bank: 3,304,000 26,560,000 -}

^{Other Short term Liab.: 167,331,000 191,065,000 6,434,000}

^{Total short term Liab.: 220,924,000 269,683,000 65,996,000}

^{TOTAL LIABILITIES: 222,788,000 272,044,000 205,778,000}

PROFIT & LOSS ACCOUNT

^{Net Sales 382,436,000 331,799,000 316,297,000}

^{Result of ordinary operations - - -41,832,000}

^{NET RESULT BEFORE TAX: 30,543,000 -24,257,00 -67,449,000}

^{Tax: 385,000 173,000 135,000}

^{Net income/loss year: 30,158,000 -24,430,000 -67,584,000}

^{Interest Paid: 5,078,000 4,551,000 4,294,000}

^{Depreciation: 7,148,000 7,154,000 6,712,000}

^{Directors Emoluments: 960,000 815,000 1,666,000}

^{Wages and Salaries: 16,787,000 19,123,000 14,803,000}

^{Financial Income: - - 2,234,000}

RATIOS

^{31/12/2005 31/12/2004 31/12/2003}

^{Net result / Turnover(%): 0.08 -0.07 -0.21}

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

^{Stock / Turnover(%): 0.10 0.11 0.00}

^{Net Margin(%): 7.89 -7.36 -21.37}

^{Return on Equity(%): -66.25 32.28 125.66}

^{Return on Assets(%): 17.01 -12.44 -44.47}

^{Net Working capital: -83482000.00 -118354000.00 35828000.00}

^{Cash Ratio: 0.13 0.19 0.14}

^{Quick Ratio: 0.42 0.39 0.84}

^{Current ratio: 0.62 0.56 1.54}

^{Receivables Turnover: 61.45 60.14 52.51}

^{Leverage Ratio: -4.89 -3.59 -3.83}

^{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

^{AUDITORS REPORT}

^{WITHOUT QUALIFYING OUR OPINION, WE DRAW ATTENTION TO THE FINANCIAL STATEMENTS WHICH SETS OUT THE BASIS USED FOR ASSESSING THE CARRYING AMOUNT OF PLANT AND EQUIPMENT USED BY THE COMPANY IN THE PRODUCTION OF ZYTEL PRODUCTS. THE CARRYING AMOUNT OF THE PLANT AS AT 31 DECEMBER 2005 WAS USD37,930,000 (2004: USD40,709,000). BASED ON THE PROJECTED CASH FLOWS OF THE PLANT, THE DIRECTORS ARE OF THE OPINION THAT THE RECOVERABLE AMOUNT IS ABOVE THE CARRYING AMOUNT AS AT 31 DECEMBER 2005. HOWEVER, BECAUSE OF THE UNCERTAINTIES INHERENT IN THE ACTUAL REALISATION OF THE FORECAST, THERE IS A POSSIBILITY THAT FUTURE DEVELOPMENTS COULD HAVE AN IMPACT ON THE RECOVERABLE AMOUNT OF THE PLANT.}

^{THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE LIMITED IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED INADEQUATE WITH NET WORTH IN NEGATIVE REGION, BUT NARROWING BY 39.85% TO USD45,521,000 (2004: USD75,679,000).}

^{THIS WAS DUE TO LOWER ACCUMULATED LOSSES OF USD59,321,000 (2004: USD89,479,000); A FALL OF 33.70% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER SHORT TERM LIABILITIES WHICH MADE UP 75.74% (2004: 70.85%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO USD167,331,000 (2004: USD191,065,000). THE BREAKDOWN IS AS FOLLOWS:}

^{-HOLDING CORPORATION (NON TRADE) - 2005: USD492,000 (2004: USD984,000)}

^{-RELATED CORPORATIONS (NON TRADE) - 2005: USD2,670,000 (2004: USD4,848,000)}

^{-OTHER PAYABLES - 2005: USD1,199,000 (2004: USD1,448,000)}

^{-LOANS FROM RELATED CORPORATIONS - 2005: USD162,970,000 (2004: USD183,785,000)}

^{TRADE CREDITORS FELL BY 9.28% TO USD40,698,000 (2004: USD44,861,000), AND CONSIST OF THE FOLLOWING:}

^{-HOLDIONG CORPORATION - 2005: USD16,959,000 (2004: USD18,906,000)}

^{-RELATED CORPORATIONS - 2005: USD9,924,000 (2004: USD12,482,000)}

^{-THIRD PARTIES - 2005: USD13,815,000 (2004: USD13,473,000)}

^{AMOUNTS DUE TO BANKS, WHICH CONSIST OF A BANK OVERDRAFT, FELL BY 87.56% TO USD3,304,000 (2004: USD26,560,000).}

^{SUBJECT LONG TERM LIABILITIES, WHICH CONSIST OF FINANCE LEAE LIABILITIES, FELL BY 21.05% TO USD1,864,000 (2004: USD2,361,000).}

^{IN ALL, LEVERAGE RATIO REMAINED IN NEGATIVE REGION AND WORSENED TO 4.89 TIMES (2004: -3.59 TIMES). THIS WAS DUE TO THE RELATIVE NARROWING OF SUBJECT'S TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS INADEQUATE AS SEEN FROM THE NEGATIVE NET WORKING CAPITAL, WHICH NARROWED BY 29.46% TO USD83,482,000 (2004: USD118,354,000).}

^{SIMILARLY, CASH AND CASH EQUIVALENTS FELL BY 45.62% TO USD27,771,000 (2004: USD51,070,000).}

^{THIS COULD INDICATE THAT SUBJECT MAY FACE DIFFICULTIES IN FULFILLING ITS SHORT TERM OBLIGATIONS IN THE FUTURE.}

^{HOWEVER, CURRENT RATIO ROSE TO 0.62 TIMES, UP FROM 0.56 TIMES AND QUICK RATIO IMPROVED TO 0.42 TIMES FROM 0.39 TIMES IN 2004.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 15.26% FROM USD331,799,000 IN 2004 TO USD382,436,000 AND SUBJECT ACHIEVED A NET PROFIT OF USD30,158,000, AS COMPARED TO THE NET LOSS OF USD24,430,000 IN 2004.}

^{HENCE, NET MARGIN ROSE INTO POSITIVE REGION OF 7.89% (2004: -7.36%).}

^{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, ITS INTEREST COVERAGE WAS HEALTHY AS SHOWN BY ITS POSITIVE INTEREST COVERAGE RATIO OF 7.01 TIMES (2004: -4.33 TIMES).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{GOING CONCERN}

^{THE FINANCIAL STATEMENTS HAVE BEEN PREPARED ON A GOING CONCERN BASIS DESPITE THE NET LIABILITIES POSITION OF USD45,521,000 AS AT 31 DECEMBER 2005 (2004: USD75,679,000) AS THE HOLDING CORPORATION AS UNDERTAKEN TO PROVIDE THE NECESSARY FINANCIAL SUPPORT TO ENABLE THE COMPANY TO CONTINUE ITS BUSINESSES AS A GOING CONCERN AND TO MEET ITS LIABILITIES AND OBLIGATIONS AS AND WHEN THEY FALL DUE.}

^BORROWINGS

^{A) SECURITY GRANTED}

^{BANK OVERDRAFT AND LOANS FROM RELATED CORPORATIONS ARE UNSECURED. THE COMPANY'S OBLIGATIONS UNDER FINANCE LEASES ARE SECURED BY THE RIGHTS TO THE LEASED ASSETS, WHICH WILL REVERT TO THE LESSOR IN THE EVENT OF DEFAULT BY THE COMPANY.}

^{B) MATURITY OF BORROWINGS}

^{LOANS FROM RELATED CORPORATIONS ARE REPAYABLE ON DEMAND. HOWEVER, LOANS FROM RELATED CORPORATIONS ARE AVAILABLE TO SUBSTITUTE THOSE THAT ARE REPAID DURING THE YEAR. THE TERM OF THE LEASED ASSETS IS 15 YEARS. THE LEASES ARE ON A FIXED REPAYMENT BASIS.}

^COMMITMENTS

^{CAPITAL COMMITMENTS}

^{APITAL EXPENDITURE CONTRACTED FOR AT THE BALNCE SHEET DATE BUT NOT RECOGNISED IN THE FINANCIAL STATEMENTS IS AS FOLLOWS:}

^{PROPERTY, PLANT AND EQUIPMENT - 2005: - (2004: USD1,688,000)}

^{CONTINGENT LIABILITIES}

^{THE COMPANY HAS CONTINGENT LIABILITIES IN RESPECT OF BANK GUARANTEES GIVEN TO THIRD PARTIES. THE DIRECTORS ARE OF THE VIEW THAT NO MATERIAL LIABILITIES WILL ARISE FROM THE BANK GUARANTEES AT THE DATE OF THESE FINANCIAL STATEMENTS.}

^{BANK GUARANTEES ON LEASE RENTAL DEPOSIT - 2005: USD246,000 (2004: USD246,000)}

^{BANK GUARANTEES TO CONTROLLER OF GOODS AND SERIVCES TAX - 2005: USD1,005,000 (2004: USD1,005,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 19/08/2002 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "DU PONT COMPANY (SINGAPORE) PTE. LTD.".}

^{AS AT 29/01/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 24,007,862 SHARES, OF A VALUE OF S$24,007,862.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) MANUFACTURE OF PHARMACEUTICAL, BIOLOGICAL INTERMEDIATES AND FINE CHEMICALS FOR}

^{HUMAN USE}

^{2) MANUFACTURE OF MEDICAL EQUIPMENT AND ORTHOPAEDIC APPLIANCES NEC (EG SURGICAL /}

^{DENTAL FURNITURE); MANUF MEDICINAL & PHARMACEUTICAL PRODUCTS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES CONSIST OF THE MANUFACTURE AND SALE OF CHEMICAL, CHEMICAL PRODUCTS AND RELATED PRODUCTS, MEDICAL PRODUCTS, INDUSTRIAL CHEMICALS AND PIGMENTS, FINISHES AND FABRICATED PRODUCTS, PETROCHEMICALS, POLYMER PRODUCTS, FIBERS AND ELECTRONIC PRODUCTS; TO PERFORM RESEARCH AND DEVELOPMENT AND PROVIDE TECHNICAL ASSISTANCE; AND TO PROVIDE SERVICES TO AFFILIATED COMPANIES WITHIN AND OUTSIDE SINGAPORE IN THE AREAS OF TECHNOLOGY, ADMINISTRATIVE MATTERS, DATA PROCESSING, PROCUREMENT AND MANAGEMENT.}

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

^{THE COMPANY COMMENCED BUSINESS IN JANUARY 2003, WHEN THE BUSINESS OPERATIONS AND RELATED ASSETS AND LIABILITIES WERE TRANSFERRED FROM A RELATED COMPANY, DUPONT TEXTILES AND INTERIOR PRIVATE LIMITED.}

^{OTHER BRAND NAMES/PRODUCT TYPES:}

^*ANTRON

^*ARTISTRI

^*CORIAN

^{*MICROCIRCUIT MATERIAL}

^*POLYMERS

^*RISTON

^*SAFETY

^{*SAFE RETURNS}

^{*SAFETY TRAINING MATERIALS}

^{*SAFETY TRAINING SERVICES}

^*TEDLAR

^{*TEFLON FINISHES}

^{*TEFLON FILMS}

^{INDUSTRIES SERVED:}

^{*AEROSPACE AND AIRCRAFT}

^{*HEALTH CARE AND MEDICAL}

^*AGRICULTURE

^{*INDUSTRIAL AND MANUFACTURING}

^{*APPAREL AND TEXTILE}

^{*MARINE AND RAIL TRANSPORTATION}

^*AUTOMOTIVE

^{*MILITARY AND LAW ENFORCEMENT}

^{*BIOTECHNOLOGY}

^*PACKAGING

^{*CHEMICAL AND PETROCHEMICAL}

^{*PLASTICS AND ELASTOMERS}

^{*CONSTRUCTION AND ARCHITECTURE}

^{*PRINTING AND PUBLISHING}

^{*CONSUMER GOODS}

^{*PULP AND PAPER}

^{*ELECTRICAL AND ELECTRONICS}

^*SAFETY

^{*FOOD AND NUTRITION}

^{*UTILITIES AND MINING}

^{QUALITY ASSESSMENT:}

^{*ISO 14001 (BY LRQA)}

^AWARDS:

^{*RESPONSIBLE CARE AWARDS (BY RESPONSIBLE CARE AWARDS)}

^{*SINGAPORE H.E.A.L.T.H. AWARD 2003 (GOLD AWARD)}

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

^{*SINGAPORE MANUFACTURERS' FEDERATION}

^{ABOUT THE GROUP:}

^{DUPONT SINGAPORE WAS ESTABLISHED IN 1973 AND TODAY EMPLOYS MORE THAN 800 PERSONS IN MANUFACTURING FACILITIES (IN TUAS AND ON JURONG ISLAND) AND IN ITS MARKETING AND ADMINISTRATIVE OFFICE AT THE HARBOURFRONT TOWER ONE.}

^{ON JANUARY 1, 2003, DUPONT SINGAPORE HAS TRANSFERRED ITS BUSINESS INTO TWO SEPARATE ENTITIES: DU PONT COMPANY (SINGAPORE) PTE LTD AND INVISTA (SINGAPORE) PTE LTD HEADED BY BC CHONG AND DILIP KUMAR RESPECTIVELY.}

^{THIS IS IN LINE WITH THE GLOBAL ALIGNMENT OF DUPONT BUSINESS IN FIVE MARKETS - AND TECHNOLOGY- FOCUSED GROWTH PLATFORMS AND THE CREATION OF A TEXTILES AND INTERIORS WHOLLY-OWNED SUBSIDIARY, INVISTA (SINGAPORE) PTE LTD. IN NOVEMBER 2003, DUPONT ANNOUNCED THAT IT HAD REACHED A DEFINITIVE AGREEMENT TO SELL INVISTA TO SUBSIDIARIES OF KOCH INDUSTRIES, INC.}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS AN EARLIER TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 01/02/2007.}

^{THE COMPANY'S HOLDING AND ULTIMATE HOLDING CORPORATION IS E.I DU PONT DE NEMOURS, INCORPORATED IN THE UNITED STATES OF AMERICA.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{- COMPANY - 2005/2004: NOT AVAILABLE (2003: 277; 2002: NIL)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{1 HARBOURFRONT PLACE}

^#11-01

^{HARBOURFRONT TOWER ONE}

^{SINGAPORE 098633}

^{DATE OF CHANGE OF ADDRESS: 05/05/2003}

^WEBSITES:

^{www.dupont.com.sg}

^{www.dupont.com}

^EMAIL:

^{Soo-Leng.Chee@sgp.dupont.com}

^{Leah-E.L.Goh@sgp.dupont.com}

^{dpsrtc@singnet.com.sg}

MANAGEMENT

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

^{1) KOH KIAN TECK PETER, A SINGAPOREAN}

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

^{2) ROHAIZAN MUSTAFFA, A SINGAPOREAN}

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

^{3) HO HSING CHAN, A SINGAPOREAN}

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

^{4) LIM CHER TONG, 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.

OVERVIEW OF SINGAPORE

^{PAST PERFORMANCE}

^{SINGAPORE'S ECONOMIC GROWTH MODERATED IN THE SECOND QUARTER TO 7.5% YEAR-ON-YEAR DUE TO A WEAKER MANUFACTURING SECTOR. PRELIMINARY ESTIMATES ISSUED SHOWN GROWTH IN REAL GROSS DOMESTIC PRODUCT SLOWED FROM A REVISED 10.7% IN THE FIRST QUARTER. ON A QUARTER-ON-QUARTER BASIS, SEASONALLY ADJUSTED ANNUALISED BASIS, GDP GREW 1.1% AFTER A 7% EXPANSION IN THE PREVIOUS QUARTER.}

^{THE MANUFACTURING SECTOR IS FORECASTED TO HAVE EXPANDED BY A MORE MODERATE 10.2% IN THE SECOND QUARTER, MAINLY ATTRIBUTED TO LOWER PRODUCTION FROM THE BIOMEDICAL MANUFACTURING CLUSTER. IT FELL BY ABOUT HALF FROM THE 20.2% IN THE FIRST QUARTER BUT HIGHER THAN THE 9.3% REGISTERED FOR THE WHOLE OF 2005. THE MANUFACTURING SECTOR ACCOUNTS FOR ABOUT A THIRD OF SINGAPORE'S ECONOMY WORTH S$194 BILLION.}

^{THE KEY ELECTRONICS SECTOR IN MANUFACTURING IS GROWING STRONGLY, AGAINST THE VOLATILE BIOMEDICAL SEGMENT. ELECTRONICS ARE SINGAPORE'S MAIN EXPORT AND THE INDUSTRY ROSE 8.6% YEAR-ON-YEAR IN MAY, BOOSTED BY A 38.9% GROWTH IN THE SEMICONDUCTOR SEGMENT.}

^{THE ACTUAL FIGURES SHOWN THAT THE CONSTRUCTION SECTOR GREW 0.2% IN THE SECOND QUARTER OVER 2Q2005. THIS IS IN CONTRAST WITH A 0.8% DECLINE IN THE TWO PRECEDING QUARTERS AND DECLINES IN THE SIX QUARTERS BEFORE THAT.}

^{THE SERVICES SECTOR ACTUALLY ROSE 7% FROM A YEAR EARLIER, SLOWER THAN THE 8.2% IN THE FIRST QUARTER BUT ABOVE THE 6% RECORDED IN 2Q2005. SERVICES INDUSTRIES, WHICH RANGE FROM HOSPITALITY TO TRANSPORT, MADE UP NEARLY TWO-THIRDS OF THE ECONOMY LAST YEAR. THOSE IN FINANCIAL SERVICES, PARTICULARLY BANKERS, FUND MANAGERS AND STOCKBROKERS, REPORTED STRONG GROWTH OF 9.5% FROM THE SAME PERIOD LAST YEAR AND UP FROM 8.7% IN THE PREVIOUS QUARTER. WHOLESALE AND RETAIL TRADE ROSE 10.1% IN THE SECOND QUARTER, AGAINST 15.1% IN THE PREVIOUS QUARTER, AS WHOLESALERS WERE AFFECTED BY A SLOWDOWN IN NON-OIL RE-EXPORTS.}

^{HOTELS AND RESTAURANTS GAINED 6.1% IN THE SECOND QUARTER SLOWER THAN 7.1% IN THE LAST QUARTER.}

^{ON THE EMPLOYMENT MARKET, MORE JOBS WERE CREATED IN THE SECOND QUARTER BUT UNEMPLOYMENT ROSE TO 2.9% AS MORE PEOPLE, ESPECIALLY TERTIARY GRADUATES, ENTERED THE JOB MARKET. SOME 36,500 MORE JOBS WERE CREATED IN THE SECOND QUARTER, REFLECTING THE CONTINUED GROWTH IN THE ECONOMY. IT BROUGHT THE TOTAL NUMBER OF JOBS CREATED IN THE FIRST HALF OF 2006 TO A RECORD 81,500, WHICH IS ABOUT TWO-THIRDS MORE THAN THE 49,500 REGISTERED IN THE SAME PERIOD LAST YEAR.}

^{THE SERVICE INDUSTRY CONTRIBUTED MOSTLY TO THE JOBS CREATION, ADDING 24,200 JOBS, WHILE MANUFACTURING AND CONSTRUCTION POSTED INCREASE OF 8,300 AND 4,000 JOBS RESPECTIVELY.}

^{RETRENCHED WORKERS TOTAL 3,100, LOWER THAN THE 3,500 IN THE FIRST QUARTER, BUT HIGHER THAN THE 2,100 IN 2Q2005.}

^AHEAD

^{THE OUTLOOK FOR THE ECONOMY REMAINS POSITIVE, AMID SIGNS OF A SLOWDOWN IN GLOBAL GROWTH. ON 8 AUGUST 2006, PRIME MINISTER LEE HISEN LOONG ANNOUNCED THAT THE SINGAPORE ECONOMY GREW 9.4% IN THE FIRST HALF OF 2005. AS A RESULT, BARRING AN OIL SHOCK, THE FULL YEAR OFFICIAL FORECAST IS BEING RAISED TO BETWEEN 6.5% AND 7.5% FOR 2006, UP FROM THE EARLIER 5 TO 7% RANGE.}

^{IN THE SECOND HALF, MODERATE GROWTH WILL BE REGISTERED IN LINE WITH THE COOLING GLOBAL ECONOMY. BUT SURPRISINGLY, THE COMPOSITE LEADING INDEX (CLI), AN INDICATOR THAT LEADS ECONOMIC ACTIVITY BY ABOUT ONE TO TWO QUARTERS AHEAD, ROSE 1.5% IN ITS FASTEST GROWTH IN OVER TWO YEARS. CLI COMPRISES NINE COMPONENTS SUCH AS MONEY SUPPLY, LIQUIDITY AND STOCK PRICES.}

^{THE GLOBAL ENERGY PRICES WILL CONTINUE TO FLUCTUATE WITH THE VIOLENCE IN THE MIDDLE EAST AND POTENTIAL SUPPLY PROBLEMS IN NIGERIA, IRAN AND IRAQ. OTHER RISK FACTORS INCLUDE AN AVIAN FLU OUTBREAK, A SLOWDOWN IN THE UNITED STATES ECONOMY, AND THE UNWINDING OF GLOBAL IMBALANCES SUCH AS THE US TRADE DEFICIT. HOTELS AND RESTAURANTS ARE BANKING ON SEPTEMBER'S INTERNATIONAL MONETARY FUND/WORLD BANK MEETING TO MAINTAIN THE GROWTH MOMENTUM.}

^{THE FINANCIAL SERVICES SECTOR IS HOPEFUL THAT WITH THE PICK-UP IN BUSINESS LOANS, BILLION-DOLLAR HEDGE FUNDS RELOCATING HERE FROM HONG KONG AND STRONG INSURANCE SALES, THE INDUSTRY WILL BE GROWING ROBUSTLY FOR THE REST OF THE YEAR.}

^{SLOWER 8.4% GROWTH IN NON-OIL EXPORTS LAST MONTH}

^{SINGAPORE'S NON-OIL DOMESTIC EXPORTS (NODX) GREW AT A SLOWER-THAN-EXPECTED 8.4% IN JULY 2006 OVER THE SAME MONTH A YEAR AGO, MAINLY DUE TO WEAKER SHIPMENTS OF ELECTRONICS, PHARMACEUTICALS AND PETROCHEMICALS.}

^{ELECTRONICS EXPORTS, WHICH ACCOUNTED FOR SLIGHTLY LESS THAN HALF OF OVERALL NODX IN 2005, GREW 5% IN JULY TO S$6.62 BILLION. IT WAS THE 12TH STRAIGHT MONTH OF EXPANSION BUT WEAKER THAN THE 9.1% GROWTH REGISTERED IN JUNE. IT WAS HURT BY A 23% FELL IN DISK DRIVE EXPORTS, WHICH WAS BEING VALUED AT S$843 MILLION IN JULY, AND A 21% DECLINE IN PERSONAL COMPUTER SHIPMENTS VALUED AT S$86 MILLION.}

^{NON-ELECTRONIC EXPORTS, WHICH CONSIST MAINLY OF PHARMACEUTICALS AND PETROCHEMICALS, ROSE 11.7% TO S$7.14 BILLION. PHARMACEUTICALS ROSE 7.1% TO S$1.27 BILLION IN JULY, SIGNIFICANTLY SLOWER THAN THE JUNE'S RISE OF 25% TO S$1.45 BILLION. PETROCHEMICAL EXPORTS ROSE 11.5% TO S$1.02 BILLION, IN COMPARISON WITH THE 32% GROWTH IN JUNE TO S$1.1 BILLION.}

^{SHIPMENTS TO SINGAPORE'S MAJOR MARKETS SUCH AS MALAYSIA, HONG KONG AND THE UNITED STATES GREW IN JULY BUT THESE WERE OFFSET BY DECLINES IN OTHER DESTINATIONS, INCLUDING JAPAN, CHINA AND EUROPEAN UNION.}

^{TOTAL TRADE IN JULY ROSE 15.9% TO ALMOST S$69 BILLION.}

^{REGIONAL ECONOMIST SONG SENG WUN OF CIMB-GK RESEARCH PREDICTED THAT THE TECHNOLOGY SECTOR COULD ENJOY A REBOUND IN THE COMING MONTHS AS DEMAND TYPICALLY PICK UP WITH THE CHRISTMAS SEASON. THE TECHNOLOGY EXPORTS WILL GROW BY THE LOW-TO-MID TEENS RANGE AS THE DISK DRIVE EXPORTS IMPROVE.}

^{EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE}

^{IE SINGAPORE}

^{THE STRAITS TIMES}

^TODAY

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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