MIRA INFORM REPORT

Report Date :

27.04.2007

IDENTIFICATION DETAILS

Name :	SANDEN INTERNATIONAL (SINGAPORE) PTE LTD
Registered Office :	^25 Ang Mo Kio Street 65, Sanden House, Singapore – 569062
Country :	Singapore
Financials (as on) :	31.03.2006
Date of Incorporation :	^30/12/1977
Com. Reg. No.:	^197702864G
Legal Form :	^Pte Ltd
Line of Business :	The Assembly and / or Sale of Automobile Air-Conditioners, Compressors and related components

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

SANDEN INTERNATIONAL (SINGAPORE) PTE LTD

Line Of Business

THE ASSEMBLY AND/OR SALE OF AUTOMOBILE AIR-CONDITIONERS, COMPRESSORS AND RELATED COMPONENTS

Parent Company

SANDEN CORPORATION

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

COMPANY

Sales : S$245,833,616

Networth : S$119,895,266

Paid-Up Capital : S$6,000,000

Net result : S$23,741,113

Net Margin(%) : 9.66

Return on Equity(%) : 19.80

Leverage Ratio : 0.37

COMPANY IDENTIFICATION

^{Subject Company : SANDEN INTERNATIONAL (SINGAPORE) PTE LTD}

^{Former Name : -}

^{Business Address: 25 ANG MO KIO STREET 65}

^{SANDEN HOUSE}

^{Town: SINGAPORE}

^{Postcode: 569062}

^{County: -}

^{Country: Singapore}

^{Telephone: 6311 3113}

^{Fax: 64825039/64824572}

^{ROC Number: 197702864G}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 30/12/1977}

^{Previous Legal Form: --}

^{Summary year : 31/03/2006}

^{Sales: 245,833,616}

^{Networth : 119,895,266}

^{Capital: 6,000,000}

^{Paid-Up Capital: 6,000,000}

^{Employees: 200}

^{Net result : 23,741,113}

^{Share value: 1}

^{AUDITOR: KPMG}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 30/12/1977}

PRINCIPAL(S)

^{KHENG ROBERT S0007358Z Managing Director}

DIRECTOR(S)

^{KHENG ROBERT S0007358Z Director}

^{Appointed on : 01/11/1994}

^{Street : 11 GILSTEAD ROAD}

^#03-04

^{MORIMASA GARDENS}

^{Town: SINGAPORE}

^{Postcode: 309065}

^{Country: Singapore}

^{LOH CHEE YEE S0069815F Company Secretary}

^{Appointed on : 20/09/1996}

^{Street : 54 RICHARDS PLACE}

^{Town: SINGAPORE}

^{Postcode: 546372}

^{Country: Singapore}

^{YUICHI YASUI MR5040592 Director}

^{Appointed on : 26/02/2004}

^{Street : 3-38-16-601 KAMEIDO KOHTOUKU}

^{Town: TOKYO}

^Postcode:

^{Country: Japan}

^{LOH LIANG SHAN S1345093E Director}

^{Appointed on : 25/11/2002}

^{Street : 249A PASIR PANJANG ROAD}

^#01-09

^{BAROSSA GARDENS}

^{Town: SINGAPORE}

^{Postcode: 118609}

^{Country: Singapore}

^{POON TAI TUEN PATRICK S2184741J Director}

^{Appointed on : 01/04/1993}

^{Street : 526 EAST COAST ROAD}

^#11-04

^{OCEAN PARK}

^{Town: SINGAPORE}

^{Postcode: 458968}

^{Country: Singapore}

^{KHENG ROBERT S0007358Z Managing Director}

^{Appointed on : 18/07/2005}

^{Street : 11 GILSTEAD ROAD}

^#03-04

^{MORIMASA GARDENS}

^{Town: SINGAPORE}

^{Postcode: 309065}

^{Country: Singapore}

^{KUNIO SHIINA MN9375053 Director}

^{Appointed on : 08/05/2006}

^{Street : 541-1 YASAKA TOWN ISESAKI-CITY}

^{GUNMA PREF.}

^Town:

^{Postcode: 372-0044}

^{Country: Japan}

FORMER DIRECTOR(S)

^{HENRY BRIAN HUGH FRANCIS S2194905A}

^{WALLACE-JONES ROBERT B327240}

^{USHIKUBO MASAYOSHI E9466759}

^{MATSUZAKI AKIRA SE9514155}

^{OBATA ITSUO E9560573}

^{FURUBAYASHI SEIJI SF1972296}

^{MIYAZAWA HAJIMA H3078932}

^{MAEDA YASUMI H6495426}

^{FUKAZAWA MITSUO SH8531145}

^{HAYAKAWA YOSHIMASA M4778136}

^{OYA TKASHI N9168300}

^{OKURA TAKAMASA N9195469}

^{FUKUDA TAKASHI U6495426}

^{MASAHIRO OKABE F5523515P}

^{YASUMI MAEDA MN0959989}

^{SHINICHI NAKANO MN9224542}

^{KUNIO SHIINA A9576339}

^{AKIRA FUKUNAGA MN9283295}

^{YUKIO TSUCHIHASHI F0418803U}

ACTIVITY(IES)

^{MOTORCAR AIR CONDITIONING EQUIPMENT Code:14390}

^{COMPRESSORS - AIR And GAS Code:5050}

^{BASED ON ACRA'S RECORD AS AT 23/04/2007}

^{1) MANUFACTURING OF REFRIGERATION, AIR-CONDITIONING AND VENTILATING MACHINERY AND EQUIPMENT;}

CHARGES

^{Date: 28/04/2003}

^{Comments : CHARGE NO: C200301893}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: HSBC BANK MIDDLE EAST}

PREMISES/PROPERTY INFORMATIONS

^{Date: 11/08/2005 Tax rate: 10}

^{Site Address : 25 ANG MO KIO STREET 65}

^{Town: SINGAPORE Postcode: 569062}

^{Country: Singapore}

^{Annual Value: 905,000}

*TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

*TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY

RENTED OUT BY THE OWNER/OWNED BY COMPANY.

*FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE

TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

*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.

BANKERS

^{THE BANK OF TOKYO-MITSUBISHI UFJ}

^{STANDARD CHARTERED BANK}

^{DBS BANK LTD.}

^{SUMITOMO MITSUI BANKING CORPORATION}

^{MIZUHO CORPORATE BANK, LTD}

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED}

ASSOCIATED COMPANY(IES)

^{IRANIAN SANDEN INDUSTRIES CO.}

^Iran

^{SANDEN AL SALAM INDUSTRIES CO.}

^{United Arab Emirates}

^{SANDEN (THAILAND) CO. LTD}

^Thailand

SHAREHOLDERS(S)

^{SANDEN CORPORATION 6,000,000 Company}

^{Street : 20 KOTOBUKI-CHO ISESAKI-SHI}

^{GUNMA 372 JAPAN}

^Town:

^Postcode:

^{Country: Japan}

FORMER SHAREHOLDER(S)

^{SANDEN INTERNATIONAL CORPORATION 6,000,000}

HOLDING COMPANY

^{SANDEN CORPORATION UF22646M % : 100}

SUBSIDIARY(IES)

^{PT SANDEN JAYA INDONESIA}

^Indonesia

^{AUTOMATIC AIR-CONDITIONING TECHNOLOGY}

Philippines

^{LAGUNA AIR-CONDITIONING SYSTEM PHILIPPINES, INC.}

Philippines

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

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: 10/07/2006}

^{Balance Sheet Date: 31/03/2006 31/03/2005 31/03/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 3,314,643 3,922,327 4,117,633}

^{Tangible Fixed Assets: 12,296,212 15,052,114 19,007,106}

^{Investments 15,482,705 19,857,350 31,133,100}

^{Total Fixed Assets: 31,093,560 38,831,791 54,257,839}

^{Inventories: 34,804,666 30,763,294 34,238,912}

^{Receivables: 58,667,681 66,659,336 46,259,770}

^{Cash,Banks, Securitis: 35,917,663 18,348,048 10,488,707}

^{Other current assets: 4,088,108 3,901,481 6,270,764}

^{Total Current Assets: 133,478,118 119,672,159 97,258,153}

^{TOTAL ASSETS: 164,571,678 158,503,950 151,515,992}

^{--- LIABILITIES}

^{Equity capital: 6,000,000 6,000,000 6,001,609}

^{Reserves: - - 2,429,000}

^{Profit & loss Account: 113,895,266 101,762,311 86,436,324}

^{Surplus equity: - - 8,845,141}

^{TOTAL EQUITY: 119,895,266 107,762,311 103,712,074}

^{Trade Creditors: 25,786,086 22,537,390 21,964,907}

^{Prepay. & Def. charges: 10,350,179 14,059,540 12,126,182}

^{Provisions: 8,540,147 6,547,292 8,034,079}

^{Other Short term Liab.: - 7,597,417 5,678,750}

^{Total short term Liab.: 44,676,412 50,741,639 47,803,918}

^{TOTAL LIABILITIES: 44,676,412 50,741,639 47,803,918}

PROFIT & LOSS ACCOUNT

^{Net Sales 245,833,616 201,186,428 224,764,985}

^{Result of ordinary operations - - 29,318,781}

^{NET RESULT BEFORE TAX: 29,719,751 27,094,969 29,035,141}

^{Tax : 5,978,638 4,513,415 6,433,495}

^{Net income/loss year: 23,741,113 22,581,554 22,601,646}

^{Interest Paid: 355,903 251,758 283,640}

^{Depreciation: 4,347,338 5,335,038 4,886,130}

^{Dividends: 13,548,898 6,780,300 5,364,000}

^{Directors Emoluments: - - 1,194,883 Wages and Salaries: 15,765,593 13,965,987 15,166,767}

^{Financial Income: 542,383 111,196 1,960,824}

RATIOS

^{31/03/2006 31/03/2005 31/03/2004}

^{Turnover per employee: 1229168.08 1005932.14 1123824.93}

^{Net result / Turnover(%): 0.10 0.11 0.10}

^{Stock / Turnover(%): 0.14 0.15 0.15}

^{Net Margin(%): 9.66 11.22 10.06}

^{Return on Equity(%): 19.80 20.95 21.79}

^{Return on Assets(%): 14.43 14.25 14.92}

^{Dividends Coverage: 1.75 3.33 4.21}

^{Net Working capital: 88801706.00 68930520.00 49454235.00}

^{Cash Ratio: 0.80 0.36 0.22}

^{Quick Ratio: 2.12 1.68 1.19}

^{Current ratio: 2.99 2.36 2.03}

^{Receivables Turnover: 85.91 119.28 74.09}

^{Leverage Ratio: 0.37 0.47 0.46}

^{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 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 11.26% FROM S$107,762,311 IN FY 2005 TO S$119,895,266 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$113,895,266 (2005: S$101,762,311); A RISE OF 11.93% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 57.72% (2005: 44.42%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$25,786,086 (2005: S$22,537,390). THE BREAKDOWN IS AS FOLLOWS:}

^{-TRADE PAYABLES - 2006: S$7,829,067 (2005: S$6,122,265)}

^{-HOLDING COMPANY - 2006: S$14,063,710 (2005: S$12,633,547)}

^{-SUBSIDIARIES - 2006: S$610,245 (2005: S$454,071)}

^{-ASSOCIATES - 2006: S$1,516,939 (2005: S$838,350)}

^{-RELATED CORPORATIONS - 2006: S$1,766,125 (2005: S$2,489,157)}

^{IN ALL, LEVERAGE RATIO FELL FROM 0.47 TIMES TO 0.37 TIMES AS A RESULT OF A DECLINE IN TOTAL LIABILITIES AND A RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 2.99 TIMES, UP FROM 2.36 TIMES AND QUICK RATIO IMPROVED TO 2.12 TIMES FROM 1.68 TIMES IN FY 2005.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 28.83% FROM S$68,930,520 IN FY 2005 TO S$88,801,706.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-CASH AT BANK AND IN HAND - 2006: S$24,244,518 (2005: S$10,193,743)}

^{-FIXED DEPOSITS WITH BANKS - 2006: S$ 11,673,145 (2005: S$ 8,154,305)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 22.19% FROM S$201,186,428 IN FY 2005 TO S$245,833,616 AND NET PROFIT ROSE BY 5.13% TO S$23,741,113 (2005: S$22,581,554). HENCE, NET MARGIN FELL TO 9.66% (2005: 11.22%).}

^{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 CONSIDERING THAT ITS INTEREST EXPENSES WERE LOW AT S$355,903 IN FY 2006 (2005: S$251,758).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-LOANS TO THIRD PARTIES (SECURED) - 2006: S$2,370,856 (2005: S$2,370,856)}

^{-LOANS TO EMPLOYEES - 2006: S$138,485 (2005: S$222,630)}

^{-DEFERRED TAX ASSETS - 2005: S$805,302 (2005: S$1,328,841)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITY}

^{(A) THE COMPANY, HAD, IN PREVIOUS YEARS, ENTERED A TECHNICAL COLLABORATION AGREEMENT AND A DISTRIBUTORSHIP AGREEMENT WITH A THIRD PARTY. THE THIRD PARTY IS ALLEGING THAT THE COMPANY HAD BREACHED THE TERMS OF THESE AGREEMENTS, INCLUDING THEIR WRONGFUL TERMINATIONS, CLAIMING FOR LOSSES AND DAMAGES CAUSED.}

^{DURING THE CURRENT YEAR, THE ARBITRATION HAS ENDED IN THE COMPANY'S FAVOUR. AS OF THE BALANCE SHEET DATE, THE THIRD PARTY RESERVES THE RIGHTS TO FILE IN AN APPEAL.}

^{NO PROVISION HAS BEEN MADE IN THE FINANCIAL STATEMENTS FOR THE ABOVE CLAIMS AS THE DIRECTORS HAVE SOUGHT LEGAL ADVICE AND ON THE STRENGTH OF THIS ADVICE, ARE OF THE OPINION THAT THE THIRD PARTY WILL NOT PROCEED WITH THE APPEAL.}

^{(B) AT THE BALANCE SHEET DATE, THE COMPANY HAD PROVIDED THE FOLLOWING GUARANTEES IN RESPECT OF ITS ASSOICATE:}

^{UNSECURED GURANTEES TO BANKS IN RESPECT OF BANKING FACILITIES GRANTED TO ASSOCIATE - 2006: S$73,068,407 (2005: S$57,237,615)}

^{SECURED GUARANTEES TO BANKS IN RESPECT OF BANKING FACILITIES GRANTED TO ASSOCIATE, WITH CHARGE OVER FIXED DEPOSITS - 2006: S$7,998,538 (2005: S$8,154,305)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 30/12/1977 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "SANDEN INTERNATIONAL (SINGAPORE) PTE LTD".}

^{AS AT 23/04/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 6,000,000 SHARES OF A VALUE OF S$6,000,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) MANUFACTURING OF REFRIGERATION, AIR-CONDITIONING AND VENTILATING MACHINERY AND EQUIPMENT; MANUFACTURE AUTO AIR CONDITIONING COMPRESSORS/SYSTEMS/PARTS AND BEVERAGE ETC}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF THE ASSEMBLY AND/OR SALE OF AUTOMOBILE AIR-CONDITIONERS, COMPRESSORS AND RELATED COMPONENTS.}

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

^{BACKGROUND OF THE SUBJECT:}

^{ENGINEERING, MANUFACTURING, MARKETING AND DISTRIBUTION ORGANIZATION WITH CUSTOMERS IN MORE THAN 30 COUNTRIES ITS PRODUCTS ARE OF THE HIGHEST QUALITY AND ARE MANUFACTURED IN JAPAN, THAILAND, INDONESIA, INDIA, ITALY AND UNITED STATES OF AMERICA.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* MANUFACTURING AND SALES OF CAR AIR CONDITIONING SYSTEM AND PARTS}

^{PRODUCTS DEALINGS:}

^COMPRESSORS

^{* SCROLL TYPE (TRS)}

^{* WOBBLE PLATE TYPE COMPRESSORS}

^{AUTOMOTIVE AIR-CONDITIONING SYSTEMS}

^{* CLIENTS INCLUDE HONDA, MITSUBISHI, MAZDA, CHRYSLER, VW, PEUGEOT, RENAULT AND GM.}

^{* ONE OF THE WORLD'S TOP MANUFACTURERS OF AUTOMOTIVE AIR-CONDITIONING COMPRESSORS}

^{AIR-CONDITIONING COMPONENTS}

^{* CONDENSERS}

^{* MFC (MULTI-FLOW CONDENSERS)}

^{* SERPENTINE TYPE}

^{* EVAPORATORS}

^{* RECEIVER DRIERS}

^{* EXPANSION VALVES (TXV)}

^{* CONDENSER FANS}

^{TRADE NAMES:}

^{* SANDEN FAN MOTORS AND COMPRESSORS (JP)}

^{EXPORT COUNTRIES:}

^{* SOUTH EAST ASIA REGION}

^{* AUSTRALIA}

^{* MIDDLE EAST}

^{* UNITED KINGDOM}

^{* EUROPE}

^{* UNITED STATES OF AMERICA}

^{OVERSEAS OFFICE:}

^{* JAPAN (HEADQUARTER)}

^{QUALITY ASSESSMENT:}

^{* ISO 9000}

^{* QS 9000}

^{* ISO 14000}

^{* ISO 9000}

^{* SQC}

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

^{* JAPANESE CHAMBER OF COMMERCE & INDUSTRY}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 06/11/2006, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2006: 200+}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 06/11/2006.}

^{THE IMMEDIATE AND ULTIMATE HOLDING COMPANY DURING THE FINANCIAL YEAR IS SANDEN CORPORATION, INCORPORATED IN JAPAN.}

^{NUMBER OF EMPLOYEES (31 MARCH):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: 259; 2004: 255)}

^{* GROUP - 2006: - (2005: -)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{25 ANG MO KIO STREET 65}

^{SANDEN HOUSE}

^{SINGAPORE 569062}

^{- OWNED PREMISE}

^{- DATE OF CHANGE OF ADDRESS: -}

^{- SITE AREA: 11,000 SQUARE METRES}

^{- BUILT-UP AREA: 7,500 SQUARE METRES}

OTHER BUSINESS ADDRESS:

5 TUAS AVE 3

SINGAPORE 639405

YOUR PROVIDED CONTACT NUMBER:

TEL: 6482 5500

- NOT IN USE

^WEBSITE:

^{http://www.sanden.com.sg}

^EMAIL:

^{webmaster@sanden.com.sg}

MANAGEMENT

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

^{1) KUNIO SHINA, A JAPANESE}

^{- BASED IN JAPAN.}

^{2) YUICHI YASUI, A JAPANESE}

^{- BASED IN JAPAN.}

^{3) KHENG ROBERT, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{UNITED SANDEN HOLDINGS PTE LTD}

^{4) LOH LIANG SHAN, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.}

^{5) POON TAI TUEN PATRICK, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

UNITED SANDEN HOLDINGS PTE LTD

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.

Manufacturing sector

PAST PERFORMANCE

THE MANUFACTURING SECTOR GREW AT A MORE MODEST PACE OF 7.7% IN 4Q 2006, AFTER A 9.5% EXPANSION IN 3Q 2006. THIS WAS DUE MAINLY TO A FALL IN THE OUTPUT OF THE ELECTRONICS AND CHEMICALS CLUSTERS, AND SLOWER GROWTH IN THE PRECISION ENGINEERING CLUSTER. GROWTH IN THE TRANSPORT ENGINEERING CLUSTER EASED BUT REMAINED STRONG. MEANWHILE, THE BIOMEDICAL MANUFACTURING CLUSTER ACCELERATED FROM A GROWTH OF 4.7% IN 3Q 2006 TO 27% IN 4Q 2006. FOR THE WHOLE YEAR, THE MANUFACTURING SECTOR GREW BY 12%, UP FROM 9.5% IN 2005, SUPPORTED BY STRONGER PERFORMANCES IN THE TRANSPORT ENGINEERING, BIOMEDICAL

MANUFACTURING AND PRECISION ENGINEERING CLUSTERS.

THE GENERAL MANUFACTURING INDUSTRIES EXPANDED 11.0% IN JANUARY 2007. PRODUCTION OF FOOD AND BEVERAGES INDUSTRIES INCREASED 12.7%, ESPECIALLY FOR FOOD, CHOCOLATE PRODUCTS AND DRINKS WHICH MEET HIGHER FESTIVE DEMAND. THE PRINTING INDUSTRIES ALSO EXPANDED BY 13.4%

OUTLOOK

THE MANUFACTURING SECTOR IS CAUTIOUSLY OPTIMISTIC ABOUT BUSINESS CONDITIONS IN THE NEXT SIX MONTHS COMPARED TO THE LAST QUARTER OF 2006. OVERALL, A WEIGHTED 18% OF THE MANUFACTURERS EXPECT AN IMPROVEMENT IN BUSINESS CONDITIONS WHILE A WEIGHTED 11% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 7% OF MANUFACTURERS HAVING AN OPTIMISTIC OUTLOOK, COMPARED TO 22% IN LAST QUARTER’S SURVEY. THE MODERATION IN SENTIMENTS CAN BE ATTRIBUTED MAINLY TO A WEAKER OUTLOOK IN THE ELECTRONICS CLUSTER AND SEASONAL SLOWDOWN DUE TO FESTIVE HOLIDAYS IN THE EARLY PART OF THE YEAR.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

economic development board

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions