MIRA INFORM REPORT

Report Date :

02.08.2007

IDENTIFICATION DETAILS

Name :	RTP COMPANY (SINGAPORE) PTE LTD
Registered Office :	^3 Tuas South Street^3, Singapore – 638045
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^05/02/2001
Com. Reg. No.:	^200100730C
Legal Form :	^Pte Ltd
Line of Business :	Manufacturers and Traders in Plastic Compound Materials

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

RTP COMPANY (SINGAPORE) PTE LTD

Line Of Business 

MANUFACTURERES AND TRADERS IN PLASTIC COMPOUND MATERIALS

Parent Company

RTP INTERNATIONAL HOLDINGS, INC.

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY2006

COMPANY

Sales : US$31,463,759

Networth : US$ 3,871,756

Paid-Up Capital : US$ 1

Net result : US$ 1,469,275

Net Margin(%) : 4.67

Return on Equity(%) : 37.95

Leverage Ratio : 9.44 TIMES

COMPANY IDENTIFICATION

^{Subject Company : RTP COMPANY (SINGAPORE) PTE LTD}

^{Former Name : -}

^{Business Address : 3 TUAS SOUTH STREET 3}

^{Town : SINGAPORE}

^{Postcode : 638045}

^{County : -}

^{Country : Singapore}

^{Telephone : 6863 6580}

^{Fax : 6863 2018}

^{6863 0010}

^{ROC Number : 200100730C}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 05/02/2001}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 31,463,759}

^{Net Worth : 3,871,756}

^{Paid-Up Capital : 1}

^{Employees : -}

^{Net Result : 1,469,275}

^{Auditor : FOO KON TAN GRANT THORNTON}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 05/02/2001}

PRINCIPAL(S)

^{GIAM POH CHOO NANCY S0019796C Director}

DIRECTOR(S)

^{GIAM POH CHOO NANCY S0019796C Director}

^{Appointed on : 05/02/2001}

^{Street : 736 BEDOK RESERVOIR ROAD}

^#04-5330

^{WATERFRONT VIEW}

^{Town : SINGAPORE}

^{Postcode : 470736}

^{Country : Singapore}

^{TANG WAI KAN WILKIN S2206639J Director}

^{Appointed on : 09/07/2001}

^{Street : 59 DA SILVA LANE}

^{Town : SINGAPORE}

^{Postcode : 549811}

^{Country : Singapore}

^{THOMAS ERIC MARKEY 028950252 Director}

^{Appointed on : 02/03/2001}

^{Street : 1336 PARKVIEW AVENUE WINONA MIN}

^{Town : -}

^{Postcode : 55987}

^{Country : United States}

^{BRIAN KEITH EVENSON 027360171 Director}

^{Appointed on : 11/04/2001}

^{Street : 344 VALLEY OAKS DRIVE}

^{WINONA, MN}

^{Town : -}

^{Postcode : 55987}

^{Country : United States}

^{HUGH LOSS MILLER 027856709 Director}

^{Appointed on : 02/03/2001}

^{Street : 23088 COUNTY ROAD 17}

^{WINONA 55987 MN}

^{Town : MINNESOTA}

^{Postcode : 55987}

^{Country : United States}

^{HUGH LOSS MILLER 027856709 Managing Director}

^{Appointed on : 02/03/2001}

^{Street : 23088 COUNTY ROAD 17}

^{WINONA 55987 MN}

^{Town : MINNESOTA}

^{Postcode : 55987}

^{Country : United States}

^{LIM HSI-WEI MARC S1601047B Company Secretary}

^{Appointed on : 05/12/2006}

^{Street : 30 DOVER RISE}

^#10-09

^{DOVER PARKVIEW}

^{Town : SINGAPORE}

^{Postcode : 138687}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{LIM CHOR PEE S2088197F}

ACTIVITY (IES)

^{PLASTICS - RAW MATERIALS - POWDERS, LIQUIDS, RESIN Code: 17020}

^{BASED ON ACRA'S RECORD AS AT 26/07/2007}

^{1) MANUFACTURE OF POLYMERS}

CHARGES

^{Date : 23/11/2001}

^{Comments : CHARGE NO: 200105748}

^{CHARGEE: UNITED OVERSEAS BANK LIMITED}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date : 31/03/2003}

^{Comments : CHARGE NO: C200301422}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: UNITED OVERSEAS BANK LIMITED}

PREMISES/PROPERTY INFORMATIONS

^{Date : 01/08/2007}

^{Tax rate : 10%}

^{Site Address : 3 TUAS SOUTH STREET 3}

^{Town : SINGAPORE}

^{Postcode : 638045}

^{Country : Singapore}

^{Annual Value : SGD 454,000}

* 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

^{UNITED OVESEAS BANK LIMITED}

SHAREHOLDERS(S)

^{RTP INTERNATIONAL HOLDINGS, INC. 2 Company}

^{Street : 580 EAST FRONT ST WINONA MN}

^{Town : -}

^{Postcode : 55987}

^{Country : United States}

HOLDING COMPANY

^{RTP INTERNATIONAL HOLDINGS, INC. UF31280C % : 100}

SUBSIDIARY (IES)

^{RTP COMPANY (SUZHOU) CO. LTD China}

PAYMENT HISTORY AND EXPERIENCES

Trade Morality : AVERAGE

^{Liquidity : LACKING}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation : AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Audit Qualification: UNQUALIFIED UNQUALIFIED UNQUALIFIED}

^{(CLEAN) (CLEAN) (CLEAN)}

^{Date Account Lodged: 17/07/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005 31/12/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 16,470,606 15,245,100 11,441,402}

^{Investments 10,762,480 7,208,580 1,500,000}

^{Total Fixed Assets: 27,233,086 22,453,680 12,941,402}

^{Inventories: 2,440,376 2,891,572 3,372,854}

^{Receivables: 5,545,031 5,989,381 4,382,256}

^{Cash, Banks, Securities: 147,042 144,945 710,269}

^{Other current assets: 5,060,827 3,416,886 183,308}

^{Total Current Assets: 13,193,276 12,442,784 8,648,687}

^{TOTAL ASSETS: 40,426,362 34,896,464 21,590,089}

^{--- LIABILITIES ---}

^{Equity capital: 1 1 1}

^{Profit & loss Account: 3,871,755 2,402,480 48,408}

^{Total Equity: 3,871,756 2,402,481 48,409}

^{Long Term Loans: 3,317,951 3,305,555 3,664,095}

^{Total L/T Liabilities: 3,317,951 3,305,555 3,664,095}

^{Trade Creditors: 11,418,869 11,420,367 6,894,431}

^{Advanced payments: 10,686,471 7,720,629 5,119,198}

^{Due to Bank: 274,893 282,421 249,926}

^{Other Short term Liab.: 10,121,051 9,279,749 5,614,030}

^{Prepay. & Def. charges: 735,371 485,262 -}

^{Total short term Liab.: 33,236,655 29,188,428 17,877,585}

^{TOTAL LIABILITIES: 36,554,606 32,493,983 21,541,680}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 31,463,759 27,085,168 19,611,492}

^{Purchases,Sces & Other Goods: 21,907,647 18,434,414 13,234,270}

^{Gross Profit: 9,556,112 8,650,754 6,377,222}

^{Result of ordinary operations 1,584,818 2,484,801 1,799,580}

^{NET RESULT BEFORE TAX: 1,469,275 2,484,801 1,799,580}

^{Net income/loss year: 1,469,275 2,354,072 1,624,224}

^{Interest Paid: 115,543 130,729 175,356}

^{Depreciation: 1,501,881 1,190,622 883,452}

^{Directors Emoluments: 215,820 197,256 205,900}

^{Wages and Salaries: 3,446,394 2,862,636 1,856,661}

^{Financial Income: 1,089 808 929}

RATIOS

^{31/12/2006 31/12/2005 31/12/2004}

^{Net result / Turnover(%): 0.05 0.09 0.08}

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

^{Stock / Turnover(%): 0.08 0.11 0.17}

^{Net Margin(%): 4.67 8.69 8.28}

^{Return on Equity(%): 37.95 97.99 3355.21}

^{Return on Assets(%): 3.63 6.75 7.52}

^{Net Working capital: -20043379.00 -16745644.00 -9228898.00}

^{Cash Ratio: 0.00 0.00 0.04}

^{Quick Ratio: 0.17 0.21 0.28}

^{Current ratio: 0.40 0.43 0.48}

^{Receivables Turnover: 63.44 79.61 80.44}

^{Leverage Ratio: 9.44 13.53 444.99}

^{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 DEEMED TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH TOTAL EQUITY IMPROVING BY 61.16% AMOUNTING TO USD3,871,756 (2005: USD2,402,481). THIS WAS DUE TO HIGHER RETAINED EARNINGS BROUGHT FORWARD OF USD3,871,755 (2005: USD2,402,480).}

^LEVERAGE:

^{THE LEVERAGE RATIO HAD IMPROVED TO 9.44 TIMES (2005: 13.53 TIMES), INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS REGISTERED LOWER AT USD11,418,869 (2005: USD11,420,367). OTHER SHORT TERM LIABILITIES OF USD10,121,051 (2005: USD9,279,749) COMPRISED OF:}

^{* OTHER PAYABLES OF NIL (2005: USD1,568,151)}

^{* PURCHASE OF PROPERTY, PLANT AND EQUIPMENT OF USD10,121,051 (2005: USD9,765,011)}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE COMPANY WAS UNHEALTHY. BOTH THE QUICK AND CURRENT RATIOS WERE LACKING AT 0.17 TIMES (2005: 0.21 TIMES) AND 0.40 TIMES (2005: 0.43 TIMES) RESPECTIVELY.}

^{THIS WAS IN TANDEM WITH THE NET WORKING CAPITAL, WHICH REMAINED UNFAVOURABLE AT -USD20,043,379 (2005: -USD16,745,644).}

^{PROFITABILITY:}

^{REVENUE FOR FY2006 ROSE BY 16.17%, TOTALLING USD31,463,759 (2005: USD27,085,168). HOWEVER, NET INCOME DECLINED BY 37.59%, ACCOUNTING FOR USD1,469,275 (2005: USD2,354,072).}

^{THUS, NET MARGIN STOOD LOWER AT 4.67% (2005: 8.69%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT BE ANTICIPATED IN VIEW OF THE UNHEALTHY LIQUIDITY AND IF TRADE RECEIVABLES WERE NON FORTHCOMING. NEVERTHELESS, AVERAGE COLLECTION PERIOD SHORTENED TO 63 DAYS (2005: 80 DAYS).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 05/02/2001 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "RTP COMPANY (SINGAPORE) PTE LTD".}

^{AS AT 26/07/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 2 SHARES OF A VALUE OF S$2.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) MANUFACTURE OF POLYMERS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE OF MANUFACTURERES AND TRADERS IN PLASTIC COMPOUND MATERIALS.}

^{THE ULTIMATE HOLDING COMPANY IS MILLER WASTE MILLS INC. AND THE IMMEDIATE HOLDING COMPANY IS RTP INTERNATIONAL HOLDINGS INC. BOTH COMPANIES ARE INCORPORATED IN THE UNITED STATES OF AMERICA.}

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

^{SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: PLASTIC PRODUCTS.}

^{SUBJECT ENGAGES IN THE MANUFACTURING OF SPECIALITY COMPOUNDING FOR THE ELECTRONICS, AUTOMOTIVE, APPLIANCE, CONSUMER, MEDICAL AND SPORTS/LEISURE MARKETS. SUBJECT IS A MANUFACTURING PLANT, TECHNICAL CENTRE AND CUSTOMER SUPPORT FACILITY FOR RTP COMPANY IN SINGAPORE.}

^{THE PLANT WILL MANUFACTURE A BROAD RANGE OF SPECIALITY COMPOUNDS AND SUPPORT CUSTOMERS IN THE ASIA-PACIFIC MARKETS.}

^{SUBJECT OFFERS CUSTOM THERMOPLASTIC SOLUTIONS FOR INJECTION MOLDING AND EXTRUSION PROCESSES. INDEPENDENT AND PRIVATELY OWNED, RTP COMPANY HAS COMPLETE OBJECTIVITY IN THE SELECTION OF RESINS AND ADDITIVES USED IN SPECIALTY COMPOUNDS. SIX WORLDWIDE MANUFACTURING FACILITIES ARE STAFFED WITH EXPERTS WHO DEVELOP CONDUCTIVE, WEAR RESISTANT, STRUCTURAL, FLAME RETARDANT, ELASTOMERIC, AND PRE-COLORED FORMULATIONS TO MEET CUSTOMER SPECIFIED REQUIREMENTS.}

^CUSTOMERS:

^{* INJECTION MOLDERS, EXTRUDERS, AND ORIGINAL EQUIPMENT MANUFACTURERS WHO TURN THEIR SPECIALTY COMPOUNDS INTO FINISHED PLASTIC PARTS.}

^{LEAD TIME:}

^{* FIVE TO TEN DAYS FOR STANDARD PRODUCT ORDERS AND SAMPLES}

^{MARKET PRESENCE:}

^{* SOUTHEAST ASIA, CHINA, TAIWAN, JAPAN AND KOREA}

^{IMPORT COUNTRIES:}

^{* CHINA}

^{* UNITED STATE OF AMERICA}

^{EXPORT COUNTRIES:}

^{* CHINA}

^{* UNITED STATE OF AMERICA}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006/5: NOT AVAILABLE (2004: 56; 2003: 35; 2002: 25)}

^{QUAKITY ASSESSMENT:}

^{* ISO 9001}

^{ABOUT THE HOLDING COMPANY:}

^{* RTP COMPANY'S ORIGINAL PLANT IS IN WINONA, MINNESOTA. THIS LOCATION CONTINUES TO SERVE AS WORLD HEADQUARTERS FOR THE COMPANY, WHICH NOW EMPLOYS MORE THAN 600 PEOPLE IN SIX STRATEGICALLY LOCATED PLANTS.}

^{* RTP COMPANY OPERATES ADDITIONAL PRODUCTION AND CUSTOMER SUPPORT FACILITIES IN: SOUTH BOSTON, VIRGINIA; FORT WORTH, TEXAS; INDIANAPOLIS, INDIANA; BEAUNE, FRANCE; AND SINGAPORE.}

^{* THE COMPANY IS WIDELY RECOGNIZED AS A WORLD LEADER IN SPECIALTY COMPOUNDING, DEVELOPING THOUSANDS OF CUSTOM REINFORCED THERMOPLASTIC FORMULATIONS EACH YEAR.}

^{* QS-9000 AND ISO 9001 REGISTERED FACILITIES}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE ON 01/08/2007.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{3 TUAS SOUTH STREET 3}

^{SINGAPORE 638045}

^{DATE OF CHANGE OF ADDRESS: 18/02/2002}

^{-- OWNED PREMISE}

^{-- 13,900 SQUARE METERS}

^WEBSITE:

^{* www.rtpcompany.com}

^EMAIL:

^{* wtang@rtcompany.com (GENERAL MANAGER: MR. WILKIN TANG)}

^{* rtp@rtpcompany.com}

MANAGEMENT

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

^{1) BRIAN KEITH EVENSON, AN AMERICAN}

^{- BASED IN THE UNITED STATES OF AMERICA.}

^{2) HUGH LOSS MILLER, AN AMERICAN}

^{- BASED IN THE UNITED STATES OF AMERICA.}

^{3) THOMAS ERIC MARKEY, AN AMERICAN}

^{- BASED IN THE UNITED STATES OF AMERICA.}

^{4) GIAM POH CHOO NANCY, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE}

^{CONOCOPHILLIPS INTERNATIONAL INC (AS AN AGENT)}

^{ACE PETRO NETWORKS SINGAPORE PTE. LTD.}

^{5) TANG WAI KIN WILKIN, A SINGAPOREAN}

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

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

• MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
• HIGH QUALITY COMPETITIVENESS IN ASIA
• EXCELLENT BUSINESS CLIMATE
• POLITICAL STABILITY.

WEAKNESSES

• SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
• AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
• GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
• BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

MANUFACTURING SECTOR

PAST PERFORMANCE

THE MANUFACTURING SECTOR GREW BY 18.8% COMPARED TO Q2 OF 2006, RIDING ON STRONG GROWTH FROM THE BIOMEDICAL MANUFACTURING AND TRANSPORT ENGINEERING CLUSTERS. TOTAL MANUFACTURING OUTPUT GREW BY 7.8% COMPARED TO OUTPUT IN THE SAME PERIOD LAST YEAR.

THE GENERAL MANUFACTURING INDUSTRIES GREW 11.3% YEAR-ON-YEAR IN Q2 2007. THE FOOD, BEVERAGES AND TOBACCO INDUSTRIES CONTRIBUTED LARGELY TO THE GROWTH WITH OUTPUT INCREASES OF 18.3%. THE MISCELLANEOUS INDUSTRIES ALSO GREW 14.9%. CUMULATIVE OUTPUT FOR THIS GROUP OF INDUSTRIES GREW 9.8% IN THE FIRST FOUR MONTHS OF THIS YEAR COMPARED TO THE SAME PERIOD IN 2006.

OUTLOOK

THE MANUFACTURING SECTOR IS MORE OPTIMISTIC IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN THE 7% RECORDED A QUARTER AGO. THE POSITIVE BUSINESS SENTIMENT IS LED BY THE ELECTRONICS CLUSTER.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

ECONOMIC DEVELOPMENT BOARD

CONTACT SINGAPORE

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