MIRA INFORM REPORT

Report Date :

13.08.2007

IDENTIFICATION DETAILS

Name :	CSE GLOBAL LIMITED
Registered Office :	^2 UBI View, Singapore – 408556
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^08/12/1987
Com. Reg. No.:	^198703851D
Legal Form :	^Pub Ltd Co
Line of Business :	Provision of Total Integrated Industrial Automation, Information Technology and Intelligent Transport Solutions and Investment Holding.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

CSE GLOBAL LIMITED

Line Of Business

PROVISION OF TOTAL INTEGRATED INDUSTRIAL AUTOMATION, INFORMATION TECHNOLOGY AND INTELLIGENT TRANSPORT SOLUTIONS AND INVESTMENT HOLDING

Parent Company

--

Financial Elements

FY 2006

CONSOLIDATED

Sales : S$334,472,000

Networth : S$108,400,000

Paid-Up Capital : S$88,412,000

Net result : S$29,123,000

Net Margin(%) : 8.71

Return on Equity(%) : 26.87

Leverage Ratio : 4.46

COMPANY IDENTIFICATION

^{Subject Company: CSE GLOBAL LIMITED}

^{Former Name: CSE SYSTEMS & ENGINEERING LTD}

^{Business Address: 2 UBI VIEW}

^{Town: SINGAPORE}

^{Postcode: 408556}

^{County: -}

^{Country: Singapore}

^{Telephone: 6512 0333}

^{Fax: 6742 9179}

^{ROC Number: 198703851D}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{CSE SYSTEMS & ENGINEERING LTD DATE OF CHANGE: 05/05/2003}

SUMMARY

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

^{Legal Form: Pub Ltd Co}

^{Date Inc.: 08/12/1987}

^{Previous Legal Form: -}

^{Summary year: 31/12/2006}

^{Sales: 334,472,000}

^{Net worth: 108,400,000}

^{Capital: -}

^{Paid-Up Capital: 88,412,000}

^{Employees: Not available}

^{Net result: 29,123,000}

^{Share value: -}

^{Auditor: ERNST & YOUNG}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 08/12/1987}

PRINCIPAL(S)

^{TAN MOK KOON S1337067B Managing Director}

DIRECTOR(S)

^{GOH BOON SEONG S0233619G Director}

^{Appointed on: 07/01/1997}

^{Street: 14 AMBER GARDENS}

^#17-03

^{AMBER PARK}

^{Town: SINGAPORE}

^{Postcode: 439960}

^{Country: Singapore}

^{LIM MING SEONG S0348871C Director}

^{Appointed on: 17/01/1997}

^{Street: 69 CHARTWELL DRIVE}

^{SERANGOON GARDEN ESTATE}

^{Town: SINGAPORE}

^{Postcode: 558765}

^{Country: Singapore}

^{LIM BOH SOON S1215642A Director}

^{Appointed on: 22/01/1999}

^{Street: 56 YUK TONG AVENUE}

^{Town: SINGAPORE}

^{Postcode: 596357}

^{Country: Singapore}

^{TAN MOK KOON S1337067B Managing Director}

^{Appointed on: 01/01/1998}

^{Street: 151 STEVENS ROAD}

^#14-03

^{THE EQUATORIAL}

^{Town: SINGAPORE}

^{Postcode: 257872}

^{Country: Singapore}

^{TAN SAN-JU S1495769C Company Secretary}

^{Appointed on: 17/12/1998}

^{Street: 37 MCNAIR ROAD}

^TOWNERVILLE

^{Town: SINGAPORE}

^{Postcode: 328532}

^{Country: Singapore}

^{LEE SOO HOON PHILLIP S2133825G Director}

^{Appointed on: 22/01/1999}

^{Street: 10 JALAN JENDELA}

^{WOODLANDS PARK}

^{Town: SINGAPORE}

^{Postcode: 739691}

^{Country: Singapore}

^{SIN BOON ANN S1327365J Director}

^{Appointed on: 13/05/2002}

^{Street: 329 RIVER VALLEY ROAD}

^#05-02

^{YONG ANN PARK}

^{Town: SINGAPORE}

^{Postcode: 238361}

^{Country: Singapore}

^{TAN MOK KOON S1337067B Director}

^{Appointed on: 07/01/1997}

^{Street: 151 STEVENS ROAD}

^#14-03

^{THE EQUATORIAL}

^{Town: SINGAPORE}

^{Postcode: 257872}

^{Country: Singapore}

^{TAN CHER LIANG S0039242A Company Secretary}

^{Appointed on: 01/07/2004}

^{Street: 19 JALAN KAYU MANIS}

^{KIMSIA PARK}

^{Town: SINGAPORE}

^{Postcode: 228978}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{LOW SEK FUN S0001379Z}

^{LEE KHENG NAM S0005024E}

^{YVONNE CHOO S0090447C}

^{TIEN SING CHEONG S0131660E}

^{HO CHING S0144440I}

^{ROBERT PAUL COLLINS 015011169}

^{YEO SIEW CHYE STEPHEN S1129346H}

^{GOH KOK HUAT S1632008J}

^{YONG LUM SUNG 1891606}

^{CHI KEH-FEI CHRIS S2655646E}

ACTIVITY(IES)

^{COMPUTER SYSTEMS INTEGRATION CONSULTANTS Code:5096}

^{ENGINEERING WORKS Code:7880}

^{COMPUTER-NETWORKING Code:5098}

^{BASED ON ACRA'S RECORD AS AT 06/08/2007}

^{1) OTHER SUPPORT ACTIVITIES; SYSTEMS INTEGRATION SOLUTION & SALES & PROVISION OF COMPUTER CONSTRUCTION AND EINGINEERING OF TELECOMMUNICATION NETWORK}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{ARAB BANK PLC}

^{CITIBANK N.A.}

^{DBS BANK LTD.}

^{MALAYAN BANKING BERHAD}

^{RHB BANK BERHAD}

^{STANDARD CHARTERED BANK}

^{THE HONGKONG & SHANGHAI BANKING COR}

^{UNITED OVERSEAS BANK LIMITED}

ASSOCIATED COMPANY(IES)

^{ENERGY STORAGE AND POWER}

^{United States}

SHAREHOLDERS(S)

^{UNITED OVERSEAS BANK NOMINEES 11,030,000 Company}

^{Street: 80 RAFFLES PLACE}

^{#UOB PLAZA}

^{Town: SINGAPORE}

^{Postcode: 048624}

^{Country: Singapore}

^{CITIBANK NOMINEES S'PORE PTE LTD 8,390,000 Company}

^{Street: 3 TEMASEK AVENUE}

^#12-00

^{CENTENNIAL TOWER}

^{Town: SINGAPORE}

^{Postcode: 039190}

^{Country: Singapore}

^{RAFFLES NOMINEES PTE LTD 24,119,000 Company}

^{Street: -}

^{Town: SINGAPORE}

^{Postcode: -}

^{Country: Singapore}

^{SEAPAC INVESTMENT PTE LTD 6,843,000 Company}

^{Street: 47 HILL STREET #05-04/06}

^{CHINESE CHAMBER OF}

^{COMMERCE & IND BLDG}

^{Town: SINGAPORE}

^{Postcode: 179365}

^{Country: Singapore}

^{DBS NOMINEES (PTE) LTD 46,132,386 Company}

^{Street: 24 RAFFLES PLACE}

^#B1-00

^{CLIFFORD CENTRE}

^{Town: SINGAPORE}

^{Postcode: 048621}

^{Country: Singapore}

^{OCBC SECURITIES PRIVATE LIMITED 5,052,000 Company}

^{Street: 18 CHURCH STREET}

^#01-00

^{OCBC CENTRE SOUTH}

^{Town: SINGAPORE}

^{Postcode: 049479}

^{Country: Singapore}

^{TIONG KUOK THAI 4,502,125 Private Person}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{WONG YON CHING 4,002,125 Private Person}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{TEO KIT CHOON 4,687,125 Private Person}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{ALAN STEWART GILBY 2,726,980 Private Person}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{DBS VICKERS SECURITIES (S) PTE LTD 21,304,000 Company}

^{Street: 6 SHENTON WAY}

^{DBS BUILDING TOWER 1}

^{Town: SINGAPORE}

^{Postcode: 068809}

^{Country: Singapore}

^{PHILLIP SECURITIES PTE LTD 2,673,994 Company}

^{Street: 250 NORTH BRIDGE ROAD}

^#06-00

^{RAFFLES CITY TOWER}

^{Town: SINGAPORE}

^{Postcode: 179101}

^{Country: Singapore}

^{TAN MOK KOON 22,980,500 Private Person}

^{Street: 151 STEVENS ROAD}

^#14-03

^{THE EQUATORIAL}

^{Town: SINGAPORE}

^{Postcode: 257872}

^{Country: Singapore}

^{HSBC (SINGAPORE) NOMINEES PTE LTD 85,684,000 Company}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{DBSN SERVICES PTE LTD 22,338,000 Company}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{MORGAN STANLEY ASIA (SINGAPORE) 11,680,000 Company}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{MAYBAN NONINEES (S) PTE LTD 8,229,000 Company}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{THE ASIA LIFE ASSURANCE SOCIETY LTD 2,409,000 Company}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{WATERWORTH PTE LTD 2,000,000 Company}

^{Street: 30 CARPENTER STREET}

^{Town: SINGAPORE}

^{Postcode: 059909}

^{Country: Singapore}

^{DB NOMINEES (S) PTE LTD 1,783,000 Company}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{DINEVERST INVESTMENTS PTE LTD 88,719,000}

^{BNP PARIBAS NOMINEES SINGAPORE PTE 2,375,000}

^{CITIBANK CONSUMER NOMINEES PTE LTD 1,996,000}

^{INDOSUEZ SINGAPORE NOMINEES PTE LTD 3,029,000}

^{OVERSEAS UNION BANK NOMINEES (PTE) 2,557,750}

^{LOW SEK FUN 9,685,000}

^{LIM BOON KHENG 3,569,500}

^{ONG KHAY KERN 2,305,125}

^{SALIL GOPINATH 2,001,625}

^{REPUBLIC TECHNOLOGIES PTE LTD 88,719,000}

^{OCBC NOMINEES SINGAPORE PTE LTD 1,976,000}

SUBSIDIARY(IES)

^{CSE SYSTEMS & ENGINEERING (THAILAND) LIMITED}

^{TRANSTEL ENGINEERING (TIANJIN) CO LTD}

^{CSE SYSTEMS & ENGINEERING (INDIA) PRIVATE LIMITED}

^{CSE SYSTEMS & ENGINEERING (AMERICA), INC.}

^{CSE TECHNOLOGY (BEIJING) CO., LTD}

^{CSE-SERVELEC GROUP LTD}

^{W-INDUSTRIES, INC.}

^{CSE-MYERS PTE LTD}

^{EBWORX HONG KONG LTD}

^{TRANSTEL ENGINEERING PTE LTD}

^{CSE-EIS (MALAYSIA) SDN BHD}

^{CSE-INFOTECH LIMITED}

^{CSE-IAP PTE LTD}

^{CSE-EIS PTE LTD}

^{RTUNET (ASIA) PTE LTD}

^{CSE-GLOBAL (AUSTRALIA) PTY LTD}

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: UPWARD}

^{Financial Situation: GOOD}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 18/05/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS}

^{Preliminary Exp 1,630,000 1,608,000}

^{Intangible Fixed Assets: 61,989,000 32,967,000}

^{Tangible Fixed Assets: 12,650,000 19,254,000}

^{Investments 15,473,000 15,321,000}

^{Total Fixed Assets: 91,742,000 69,150,000}

^{Inventories: 8,373,000 5,746,000}

^{Receivables: 71,983,000 54,962,000}

^{Cash,Banks,Securities: 66,901,000 29,362,000}

^{Other current assets: 76,485,000 64,666,000}

^{Total Current Assets: 223,742,000 154,736,000}

^{TOTAL ASSETS: 315,484,000 223,886,000}

^{--- LIABILITIES}

^{Equity capital: 88,412,000 16,491,000}

^{Reserves: -4,266,000 -1,106,000}

^{Profit & loss Account: 24,241,000 3,439,000}

^{Other: 13,000 13,000}

^{Surplus equity: - 68,548,000}

^{Total Equity: 108,400,000 87,385,000}

^{Long Term Loans: 7,701,000 2,783,000}

^{L/T deferred taxes: 1,843,000 570,000}

^{Other long term Liab.: 424,000 366,000}

^{Total L/T Liabilities: 9,968,000 3,719,000}

^{Trade Creditors: 94,475,000 48,969,000}

^{Short term liabilities: 220,000 225,000}

^{Due to Bank: 90,045,000 72,004,000}

^{Provisions: 6,427,000 5,385,000}

^{Other Short term Liab.: 5,949,000 6,199,000}

^{Total short term Liab.: 197,116,000 132,782,000}

^{TOTAL LIABILITIES: 207,084,000 136,501,000}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 334,472,000 267,335,000}

^{Purchases,Sces & Other Goods: 224,759,000 179,957,000}

^{Gross Profit: 109,713,000 87,378,000}

^{NET RESULT BEFORE TAX: 39,866,000 28,560,000}

^{Tax: 10,743,000 6,437,000}

^{Net income/loss year: 29,123,000 22,123,000}

^{Interest Paid: 4,005,000 2,675,000}

^{Depreciation: 2,565,000 2,442,000}

^{Dividends: 8,321,000 6,524,000}

^{Directors Emoluments: 6,005,000 3,581,000}

^{Wages and Salaries: 41,657,000 36,450,000}

^{Financial Income: 826,000 377,000}

RATIOS

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

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

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

^{Stock / Turnover(%): 0.03 0.02}

^{Net Margin(%): 8.71 8.28}

^{Return on Equity(%): 26.87 25.32}

^{Return on Assets(%): 9.23 9.88}

^{Dividends Coverage: 3.50 3.39}

^{Net Working capital: 26626000.00 21954000.00}

^{Cash Ratio: 0.34 0.22}

^{Quick Ratio: 0.70 0.64}

^{Current ratio: 1.14 1.17}

^{Receivables Turnover: 77.48 74.01}

^{Leverage Ratio: 4.46 2.51}

^{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 GROUP WAS SEEN TO BE STABLE IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED ADEQUATE WITH NET WORTH IMPROVED BY 24.05% FROM S$87,385,000 IN 2005 TO S$108,400,000 IN 2006.}

^{THIS WAS DUE TO HIGHER REVENUE RESERVES OF S$24,241,000 (2005: S$3,439,000); A RISE OF 6.05 TIMES FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM IN 2006, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 47.93% (2005: 36.88%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$94,475,000 (2005: S$48,969,000).}

^{HOWEVER, IN THE SHORT-TERM IN 2005, SUBJECT WAS LARGELY FINANCED BY AMOUNTS DUE TO BANKERS WHICH MADE UP 54.23% (2006: 45.68%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$72,004,000 (2006: S$90,045,000).}

^{SUBJECT'S LONG TERM LIABILITIES ROSE BY 1.68 TIMES TO S$9,968,000 (2005: S$3,719,000), AND CONSIST OF THE FOLLOWING:}

^{-DEFERRED TAX LIABILITIES - 2006: S$1,843,000 (2005: S$570,000)}

^{-FINANCE LEASES - 2006: S$424,000 (2005: S$366,000)}

^{-AMOUNTS DUE TO BANKERS - 2006: S$7,701,000 (2005: S$2,783,000)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 2.51 TIMES TO 4.46 TIMES AS A RESULT OF A MORE THAN PROPORTIONATE RISE IN TOTAL LIABILITIES AS COMPARED TO THE RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 21.28% TO S$26,626,000 (2005: S$21,954,000).}

^{CURRENT RATIO FELL TO 1.14 TIMES, DOWN FROM 1.17 TIMES AND QUICK RATIO IMPROVED TO 0.70 TIMES FROM 0.64 TIMES IN 2005.}

^{CASH AND CASH EQUIVALENTS ROSE SHARPLY BY 1.28 TIMES TO S$66,901,000}

^{(2005: S$29,362,000).}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 25.11% FROM S$267,335,000 IN 2005 TO S$334,472,000 AND NET PROFIT ROSE BY 31.64% TO S$29,123,000 (2005: S$22,123,000).}

^{HENCE, NET MARGIN ROSE TO 8.71% (2005: 8.28%).}

^{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 INTEREST COVERAGE RATIO OF 10.95 TIMES (2005: 11.68 TIMES).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEM is CLASSIFIED UNDER PRELIMINARY:}

^{-DEFERRED TAX ASSET - 2006: S$1,630,000 (2005: S$1,608,000)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{AMOUNTS DUE TO BANKERS}

^{THE UNSECURED SHORT TERM LOANS OF THE COMPANY AND OF THE GROUP BEAR INTEREST AT 4.06% - 6.87% (2005 : 2.75% - 5.64%) PER ANNUM. THE UNSECURED LONG TERM LOANS OF THE COMPANY AND OF THE GROUP BEAR INTEREST RANGING BETWEEN 6.25%- 6.33% (2005 : 4.14% - 5.07%) PER ANNUM AND IS REPAYABLE FROM JUNE 2008. THESE FL OATING RATE LOANS FIX INTEREST RATES BASED ON THE PREVAILING MARKET RATE AT INTERVALS OF 6 MONTHS.}

^{SUBSEQUENT EVENTS}

^{(A) CHANGE IN CORPORATE TAX RATE}

^{ON 15 FEBRUARY 2007, THE SINGAPORE GOVERNMENT ANNOUNCED A REVISION IN THE SINGAPORE CORPORATE TAX RATE FROM 20% TO 18% FOR YEAR OF ASSESSMENT 2008. IN ACCORDANCE WITH FRS 12 INCOME TAXES, AND FRS 10 EVENTS AFTER THE BALANCE SHEET DATE, THIS IS A NON-ADJUSTING SUBSEQUENT EVENT. THE PROVISIONS FOR DEFERRED TAX IN THESE FINANCIAL STATEMENTS HAVE NOT BEEN ADJUSTED TO REFL ECT THE CHANGE IN THE TAX RATE. THE FI NANCIAL EFFECT OF THE REDUCED TAX RATE WILL BE REFL ECTED IN THE 31 DECEMBER 2007 FI NANCIAL YEAR. HAD THE PROVISIONS BEEN ADJUSTED, THE TAXATION CHARGE FOR THE YEAR FOR THE GROUP AND COMPANY WOULD BE REDUCED BY $94,000 AND $NIL RESPECTIVELY. THE PROVISION FOR DEFERRED TAX FOR THE GROUP AND COMPANY WOULD BE REDUCED BY APPROXIMATELY $74,000 AND $76,000 RESPECTIVELY.}

^{BONUS ISSUE}

^{(B)ON 26 FEBRUARY 2007, THE COMPANY ANNOUNCED THAT THE COMPANY WAS PROPOSING A BONUS ISSUE OF NEW ORDINARY SHARES IN THE CAPITAL OF THE COMPANY (THE "BONUS SHARES") ON THE BASIS OF ONE (1) BONUS SHARE FOR EVERY TWO (2) EXISTING ORDINARY SHARE IN THE CAPITAL OF THE COMPANY HELD BY THE SHAREHOLDERS OF THE COMPANY (THE "PROPOSED BONUS ISSUE") ON A DATE YET TO BE DETERMINED AT THE DATE OF THE ANNOUNCEMENT (THE "BOOK CLOSURE DATE"). FRACTIONAL ENTITLEMENTS WILL BE DISREGARDED AND WILL BE DISPOSED OF IN A MANNER AS THE DIRECTORS MAY IN THEIR ABSOLUTE DISCRETION DEEM FI T FOR THE BENEFI T OF THE COMPANY. THE BONUS SHARES, WHEN ALLOTTED AND ISSUED, WILL NOT BE ENTITLED TO THE DIVIDENDS PROPOSED FOR THE FI NANCIAL YEAR 2006. THE BONUS SHARES, WHEN ALLOTTED AND ISSUED, WILL RANK PARI PASSU IN ALL RESPECTS WITH THE EXISTING ORDINARY SHARES IN THE CAPITAL OF THE COMPANY. THE PROPOSED BONUS ISSUE AND LISTING OF THE BONUS SHARES WILL BE SUBJECTED TO THE APPROVAL OF THE SGX-ST AND THE APPROVAL OF THE SHAREHOLDERS AT AN EXTRAORDINARY GENERAL MEETING TO BE CONVENED SUBSEQUENTLY. THE COMPANY WILL BE MAKING AN APPLICATION TO THE SGX-ST FOR APPROVAL OF THE PROPOSED BONUS ISSUE.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 08/12/1987 AS A PUBLIC COMPANY LIMITED BY SHARES AND IS TRADING UNDER THE PRESENT NAMESTYLE OF "CSE GLOBAL LIMITED".}

^{FORMERLY KNOWN AS "CSE SYSTEMS & ENGINEERING LTD.", SUBJECT CHANGED TO ITS PRESENT NAMESTYLE ON 05/05/2003.}

^{AS AT 06/08/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 506,651,102 SHARES, OF A VALUE OF S$88,959,583.68.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) OTHER SUPPORT ACTIVITIES; SYSTEMS INTEGRATION SOLUTION & SALES & PROVISION OF COMPUTER NETWORK SYSTEMS}

^{2) OTHER SERVICE ACTIVITIIES; CONSTRUCTION AND EINGINEERING OF TELECOMMUNICATION NETWORK}

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE THOSE RELATING TO PROVISION OF TOTAL INTEGRATED INDUSTRIAL AUTOMATION, INFORMATION TECHNOLOGY AND INTELLIGENT TRANSPORT SOLUTIONS AND INVESTMENT HOLDING. THE PRINCIPAL ACTIVITIES OF THE SUBSIDIARY COMPANIES ARE THOSE RELATING TO DESIGN, DELIVERY, COMMISSIONING AS WELL AS PROVISION OF COMPREHENSIVE MAINTENANCE TO A WIDE ARRAY OF INDUSTRIAL SYSTEMS AND INVESTMENT HOLDING.}

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

^{BACKGROUND INFORMATION}

^{- CSE GLOBAL LIMITED (CSE) IS A LEADING SYSTEMS INTEGRATOR WITH AN INTERNATIONAL}

^{PRESENCE SPANNING AMERICAS, ASIA PACIFIC, EUROPE, AFRICA AND THE MIDDLE EAST. THE}

^{GROUP EMPLOYS OVER 1000 PEOPLE WORLDWIDE, WITH OVER 85 PERCENT REPRESENTING ITS}

^{DESIGN, ENGINEERING AND PROJECT MANAGEMENT CAPABILITY AND EXPERIENCE. THAT}

^{MAKES CSE ONE OF THE LARGEST INDEPENDENT SYSTEMS INTEGRATORS OF ITS KIND.}

^{- CSE COMMENCED OPERATIONS IN 1985 AS THE ENGINEERING PROJECTS DIVISION OF}

^{CHARTERED ELECTRONICS INDUSTRIES, THE ELECTRONICS ARM OF SINGAPORE TECHNOLOGIES}

^{(ST). AS PART OF THE ST GROUP'S CORPORATE STRATEGY OF ENCOURAGING A HIGHER LEVEL}

^{OF MANAGEMENT PARTICIPATION AND OWNERSHIP IN SELECTIVE COMPANIES, A MANAGEMENT}

^{BUY-OUT WAS SUCCESSFULLY CONCLUDED IN JANUARY 1997.}

^{- IN FEBRUARY 1999, CSE BECAME A PUBLIC LISTED COMPANY AND ITS SHARES ARE TRADED ON}

^{THE MAIN BOARD OF THE SINGAPORE EXCHANGE.}

^ACTIVITIES

^{- SYSTEM INTEGRATOR PROVIDING COST EFFECTIVE TOTAL INTEGRATION SOLUTIONS TO THE}

^{PROCESS, MANUFACTURING,POWER,PULP AND PAPER AND OIL AND GAS INDUSTRIES}

^{- PROVIDES INFORMATION TECHNOLOGY (IT) AND INDUSTRIAL AUTOMATION (IA) SOLUTIONS TO}

^{CLIENTS GLOBALLY IN THE ENERGY AND PETROCHEMICAL/ CHEMICAL, OIL AND GAS AND POWER}

^{AND PROCESS UTILITY INDUSTRIES, AS WELL AS THE WATER, DRAINAGE, SEWERAGE AND}

^{ENVIRONMENTAL (POLLUTION AND HYDROLOGY) INDUSTRIES, THE HEALTHCARE INDUSTRY, THE}

^{BANKING AND FINANCE INDUSTRY, AND THE PUBLIC SECTOR.}

^{NUMBER OF EMPLOYEES}

^{- ABOUT 120}

^{MARKET PRESENCE}

^{- ASIA-PACIFIC REGION, EUROPE, ETC}

^{TERMS OF PAYMENT}

^{- TERMS OF IMPORT: OPEN ACCOUNT 30-90 DAYS}

^{- TERMS OF EXPORT: OPEN ACCOUNT 30-60 DAYS}

^CLIENTS

^{- BP, SHELL, TOTAL FINA ELF, EXXON MOBIL, KERR MCGEE AND ANADARKO}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITY}

^{- SINGAPORE BUSINESS FEDERATION}

^{QUALITY ASSESSMENT}

^{- ISO 9001}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 13/08/2007.}

^{NUMBER OF EMPLOYEES (31 DECEMBER)}

^{- GROUP - 2006: NOT AVAILABLE (2005: NOT AVAILABLE)}

^{REGISTERED ADDRESS:}

^{3 CHURCH STREET}

^#08-01

^{SINGAPORE 049483}

^{DATE OF CHANGE OF ADDRESS: 18/12/2006}

^{BUSINESS ADDRESS:}

^{2 UBI VIEW}

^{SINGAPORE 408556}

^WEBSITE:

^{http://www.cse-global.com}

^EMAIL:

^{customerservice@cse-global.com}

MANAGEMENT

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

^{1) GOH BOON SEONG, A SINGAPOREAN}

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

^{UNITED BMEC PTE LTD}

^{ADVANCED MATERIALS TECHNOLOGIES PTE LTD}

^{WHITEROCK PARTNERS PTE LTD}

^{HEALTHSTATS INTERNATIONAL PTE LTD}

^{2) LIM MING SEONG, A SINGAPOREAN}

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

^{FOUNDERS INDUSTRIES PTE LTD}

^{SINGAPORE TECHNOLOGIES KINETICS LTD}

^{SINGAPORE AEROSPACE MANUFACTURING PRIVATE LIMITED}

^{UNITED BMEC PTE LTD}

^{STT COMMUNICATIONS LTD}

^{STATS CHIPPAC LTD.}

^{SINGAPORE TECHNOLOGIES TELEMEDIA PTE LTD}

^{MICROPOLIS [S] LIMITED}

^{ACCURON TECHNOLOGIES LIMITED}

^{TUAS POWER LTD}

^{STARHUB LTD.}

^{HEALTHSTATS INTERNATIONAL PTE LTD}

^{3) LIM BOH SOON, A SINGAPOREAN}

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

^{4) SIN BOON ANN, A SINGAPOREAN}

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

^{DREW & NAPIER LLC}

^{HEALTHSTATS INTERNATIONAL PTE LTD}

^{MFS TECHNOLOGY LTD}

^{5) TAN MOK KOON, A SINGAPOREAN}

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

^{TRANSTEL ENGINEERING PTE LTD}

^{6) LEE SOO HOON PHILLIP, A SINGAPORE PERMANENT RESIDENT}

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

^{IPC CORPORATION LTD}

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.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMY GREW BY 6.1% IN QUARTER 1 OF 2007 AFTER A 6.6% GROWTH IN QUARTER 4 OF 2006. THE GROWTH MOMENTUM EASED SLIGHTLY TO 7.6% IN 1Q 2007, COMPARED WITH 7.9% A QUARTER EARLIER. GROWTH IN QUARTER 1 WAS LED BY THE FINANCIAL SERVICES AND CONSTRUCTION SECTORS. THE MANUFACTURING SECTOR CONTINUED TO EXPERIENCE A MODERATION IN GROWTH.

THE FINANCIAL SERVICES SECTOR SIGNIFICANTLY INCREASED BY 13% IN 1Q 2007 ON THE HEELS OF THE 11% GROWTH A QUARTER AGO. THE STRONG PERFORMANCE WAS ACROSS ALL MAJOR FINANCIAL SEGMENTS, PARTICULARLY IN THE CAPITAL AND MONEY MARKETS. FUND MANAGEMENT ACTIVITIES REMAINED BOUYANT, IN LINE WITH THE CONTINUED STRENGTH IN ECONOMIC CLIMATE. SIMILARLY, BANKS SAW STRONG GROWTH, BOUYED BY SUSTAINED RESILIENCE IN THE ASIA DOLLAR MARKET AS WELL AS A STEADY INCREASE IN DOMESTIC LENDING ACTIVITY.

THE CONSTRUCTION SECTOR GREW BY 9.7% IN 1Q 2007, ITS STRONGEST GROWTH IN 9 YEARS. CERTIFIED PAYMENTS INCREASE BY 9.5% IN 1Q 2007, SUPPORTED BY STRONG GROWTH IN THE PRIVATE RESIDENTIAL, COMMERCIAL AND INDUSTRIAL SEGMENTS AS WELL AS PUBLIC RESIDENTIAL SEGMENT. HOWEVER, CONTRACTS AWARDED FELL BY 11% IN 1Q 2007, DUE MAINLY TO THE DROP IN THE PRIVATE COMMERCIAL AND PUBLIC INSTITUTIONAL SEGMENTS.

MANUFACTURING SECTOR INCREASED BY 4.3% IN 1Q 2007, DOWN FROM 7.7% IN THE PREVIOUS QUARTER. BOTH BIOMEDICAL MANUFACTURING (-5.0%) AND PRECISION ENGINEERING (-0.7%) CLUSTERS SAW LOWER PRODUCTION DURING THE QUARTER. THE ELECTRONICS CLUSTER, HOWEVER, RECOVERED FROM A 4.1% CONTRACTION IN 4Q 2006 TO REGISTER AN INCREASE OF 2.6% IN 1Q 2007. THE TRANSPORT ENGINEERING CLUSTER CONTINUED TO EXPAND STRONGLY AT 23%, FOLLOWING A 25% INCREASE IN 4Q 2006.

THE WHOLESALE AND RETAIL TRADE SECTOR EXPANDED 6.7% IN 1Q 2007 AFTER A 6.9 GROWTH IN 4Q 2006. RETAIL SALES GROWTH EASED FROM 7.9% IN THE PREVIOUS QUARTER TO 6.1% IN 1Q 2007, MAINLY DUE TO A DECELERATION IN MOTOR VEHICLES SALES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.9%, UP FROM 4.2% IN 4Q 2006. IN THE WHOLESALE SEGMENT, GROWTH OF NON-OIL RE-EXPORTS REMAINED FIRM AT 5.9%, SLOWER THAN 6.3% IN 4Q 2006.

THE TRANSPORT AND STORAGE SECTOR GREW 4.4% IN 1Q 2007, UP FROM 4.0% A QUARTER EARLIER. THE AIR SEGMENT SAW A SLOWDOWN DUE TO A MODERATION IN AIR PASSENGER TRAFFIC GROWTH AND A DECLINE IN AIR CARGO. STRONGER ACTIVITY WAS RECORDED IN THE SEA SEGMENT ON THE BACK OF BETTER PERFORMANCE IN SEA CARGO HANDLED AND CONTAINER THROUGHPUT.

THE HOTELS AND RESTAURANTS SECTOR REGISTERED A SLOWER GROWTH OF 4.7% IN 1Q 2007, DOWN FROM 6.1% 4Q 2006. VISITOR ARRIVALS GREW AT A MORE MODEST PACE OF 4.1% COMPARED TO 8.4% IN THE PREVIOUS QUARTER. THE INCREASE IN HOTEL ROOM REVENUE MODERATED FROM THE 21% GAIN IN 4Q 2006 TO 14% IN 1Q 2007. HOWEVER, THE AVERAGE OCCUPANCY RATE OF HOTELS REMAINED HIGH AT 87%, A 4.3% POINTS INCREASE OVER THE CORRESPONDING PERIOD LAST YEAR.

THE INFORMATION AND COMMUNICATIONS SECTOR GREW 6.6% IN 1Q 2007, UP FROM 6.0% IN THE PREVIOUS QUARTER. WHILE THE IT SEGMENT SAW SOME MODERATION IN ACTIVITIES, THE TELECOMMUNICATIONS SEGMENT PERFORMED BETTER. INTERNATIONAL TELEPHONE CALL DURATION WENT UP SHARPLY BY 19%, UP FROM 11% IN 4Q 2006. GROWTH IN THE NUMBER OF MOBILE SUBSCRIBERS AND BROADBAND SUBSCRIBERS ALSO REMAINED STRONG DURING THE QUARTER.

BUSINESS SERVICES SECTOR EXPANDED BY 6.6% IN 1Q 2007, BETTER THAN THE 5.4% POSTED IN 4Q 2006. ROBUST PERFORMANCE WAS SEEN IN THE REAL ESTATE SEGMENT ON THE BACK OF CONTINUED STRENGTH IN THE LUXURY PROPERTY MARKET. THE SECTOR WAS ALSO WELL SUPPORTED BY THE OTHER SEGMENTS, PARTICULARLY BUSINESS REPRESENTATIVE OFFICES, AND BUSINESS & MANAGEMENT CONSULTANCY ACTIVITIES.

OUTLOOK

THE ECONOMIC OUTLOOK IS GENERALLY POSITIVE BUT SOME DOWNSIDE RISKS REMAIN. THESE INCLUDE A SLOWDOWN IN THE US ECONOMY, VULNERABILITY OF OIL PRICES TO SUPPLY SHOCKS AND A DISORDERLY UNWINDING OF GLOBAL UNBALANCES. BARRING THESE UNCERTAINTIES, ECONOMIC GROWTH IS EXPECTED TO REMAIN HEALTHY IN 2007.

BUSINESS SENTIMENTS ARE GENERALLY POSITIVE IN THE FINANCIAL SERVICES INDUSTRY. BANKS AND FINANCE COMPANIES, FUND MANAGEMENT FIRMS AND INSURANCE COMPANIES EXPECT AN IMPROVEMENT IN THE BUSINESS CLIMATE IN THE COMING MONTHS.

AN OVERALL NET WEIGHTED BALANCE OF 61% OF FIRMS IN THE REAL ESTATE INDUSTRY EXPECTS BETTER BUSINESS CONDITIONS FOR THE NEXT 6 MONTHS. WITHIN THE INDUSTRY, REAL ESTATE DEVELOPERS AND AGENTS FORESEE BRISK BUSINESS ACTIVITY AHEAD.

MANUFACTURING SECTORS ARE MORE OPTIMISTIC IN THE NEXT 6 MONTHS 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 7% RECORDED A QUARTER AGO.

WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD AND BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

FIRMS IN THE RETAIL TRADE FORESEE BUSINESS TO BE LESS BRISK. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

WITHIN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 18% OF FIRMS FORECASTS IMPROVED BUSINESS PROSPECTS FOR THE NEXT 6 MONTHS. IN PARTICULAR, FIRMS IN THE WATER TRANSPORT AND SUPPORTING SERVICES EXPECT HIGHER LEVEL OF BUSINESS ACTIVITY.

HOTELIERS PROJECT A FAVOURABLE BUSINESS OUTLOOK, WHICH IS IN TANDEM WITH THE POSITIVE SENTIMENTS IN THE TOURISM MARKET. FOR THE CATERING TRADE INDUSTRY, BUSINESS OUTLOOK IN THE COMING MONTHS REMAINS THE SAME.

FIRMS IN THE INFORMATION AND COMMUNICATION INDUSTRY ANTICIPATES A HIGHER LEVEL OF BUSINESS ACTIVITY, WITH A POSITIVE NET WEIGHTED BALANCE OF 12%.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSES POSITIVE SENTIMENTS. THESE INCLUDE FIRM ENGAGED IN RENTING OF CONSTRUCTION & INDUSTRIAL MACHINERY, ARCHITECTURAL & ENGINEERING, SPECIALISED DESIGN AND LABOUR RECRUITMENT SERVICES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

CHANNELNEWS ASIA

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.	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