MIRA INFORM REPORT

Report Date :

23.08.2007

IDENTIFICATION DETAILS

Name :	CJP INTERNATIONAL PTE LTD
Registered Office :	^3 Anson Road, # 13-03^, Springleaf Tower, Singapore^– 079909
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^30/07/1999
Com. Reg. No.:	^199904457Z
Legal Form :	^Pte Ltd
Line of Business :	Bulk Trade and Distributor of Chemicals.

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

CJP INTERNATIONAL PTE LTD

Line Of Business 

BULK TRADE AND DISTRIBUTOR OF CHEMICALS.

Parent Company

MINING INTERNATIONAL HOLDINGS ESTABLISHMENT

(PERCENTAGE OF SHAREHOLDING: 71.77%)

Financial Elements

FY 2005

COMPANY

Sales : US$177,160,419

Networth : US$ 8,268,112

Paid-Up Capital : US$ 7,841,333

Net result : US$ -863,057

Net Margin(%) : -0.49

Return on Equity(%) : -10.44

Leverage Ratio : 3.11

COMPANY IDENTIFICATION

^{Subject Company : CJP INTERNATIONAL PTE LTD}

^{Former Name : -}

^{Business Address 3 ANSON ROAD}

^{# 13-03}

^{SPRINGLEAF TOWER}

^{Town : SINGAPORE}

^{Postcode : 079909}

^{County : -}

^{Country : Singapore}

^{Telephone : 6883 2250}

^{Fax : 6883 2251}

^{ROC Number : 199904457Z}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 30/07/1999}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 177,160,419}

^{Networth : 8,268,112}

^{Capital : -}

^{Paid-Up Capital : 7,841,333}

^{Employees : 29}

^{Net result : -863,057}

^{Share value : 1}

^{Auditor : RSM CHIO LIM}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 30/07/1999}

PRINCIPAL(S)

^{LIEW ENG LENG S1671965Z Director}

DIRECTOR(S)

^{LIEW ENG LENG S1671965Z Director}

^{Appointed on : 01/09/1999}

^{Street : 10 BEDOK RESERVOIR VIEW}

^#15-31

^{THE CLEARWATER}

^{Town : SINGAPORE}

^{Postcode : 479236}

^{Country : Singapore}

^{TEO CHEW KIAT S1739529G Director}

^{Appointed on : 30/07/1999}

^{Street : 39 BEDOK ROAD}

^#01-05

^{COUNTRY PARK CONDOMINIUM}

^{Town : SINGAPORE}

^{Postcode : 469361}

^{Country : Singapore}

^{JOHN CHRIST PETROW 404925637 Director}

^{Appointed on : 25/08/1999}

^{Street : WINERFOLD ALTONBURN ROAD}

^{NAIRN IV12 5NB SCOTLAND UK}

^{Town : -}

^{Postcode : -}

^{Country : United Kingdom}

^{MICHAEL SOSNOVIK 4502185057 Director}

^{Appointed on : 25/08/1999}

^{Street : BOX 11,000 JOHANNESBURG 2000}

^{Town : JOHANNESBURG}

^{Postcode : -}

^{Country : South Africa}

^{JACK MITCHELL GINSBERG 4701085047 Director}

^{Appointed on : 11/07/2001}

^{Street : BOX 11,000 JOHANNESBURG 2000}

^{Town : -}

^{Postcode : -}

^{Country : South Africa}

^{LOW MEI MEI MAUREEN S1728235B Company Secretary}

^{Appointed on : 05/06/2001}

^{Street : 26 SIMEI STREET 1}

^#07-01

^{MELVILLE PARK}

^{Town : SINGAPORE}

^{Postcode : 529947}

^{Country : Singapore}

^{ONG CHIN SENG S1636546G Director}

^{Appointed on : 01/07/2004}

^{Street : 10 PARI DEDAP WALK}

^#09-15

^{TANAMERA CREST}

^{Town : SINGAPORE}

^{Postcode : 486062}

^{Country : Singapore}

^{LISA ELENI PETROW F1485208 Director}

^{Appointed on : 05/12/2001}

^{Street : 34B CHEMIN DES CORNILLONS}

^{1292 CHAMBESY}

^{Town : -}

^{Postcode : -}

^{Country : Switzerland}

FORMER DIRECTOR(S)

^{NG KAI SIANG ALBERT S1607853J}

^{VENKATESH RAMAN S2678782C}

^{TAN SIOK KHENG S1705273Z}

^{LAI LEE YONG S1728802D}

ACTIVITY(IES)

^{CHEMICALS Code:3970}

^{TRADING COMPANIES Code:22190}

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

^{BASED ON ACRA'S RECORD AS AT 17/08/2007}

^{1) OTHER SUPPORT ACTIVITIES;}

^{BULK-TRADER & DISTRIBUTION OF CHEMICALS & PLASTICS RAW MATERIALS}

CHARGES

^{Comments : CHARGE NO : 200101387 (DISCHARGED - 31/12/2001)}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : BNP PARIBAS}

^{Date: 23/06/2005}

^{Comments : CHARGE NO : C200503535, C200503534}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : COMMERZBANK AKTIENGESELLCHAFT}

^{Date: 29/12/2004}

^{Comments : CHARGE NO : C200406681}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : ING BANK N.V.}

^{Date: 21/07/2005}

^{Comments : CHARGE NO : C200504289}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : UFJ BANK LIMITED}

^{Date: 21/12/2005}

^{Comments : CHARGE NO : C200507950}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : DBS BANK LTD}

^{Comments : CHARGE NO : C200502449 (DISCHARGED - 18/12/2006)}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : OVERSEA-CHINESE BANKING CORPORATION LIMITED}

^{Date: 20/03/2000}

^{Comments : CHARGE NO: 200001249}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE (S) : STANDARD CHARTERED BANK}

^{Date: 20/01/2004}

^{Comments : CHARGE NO : C200400430 (DISCHARGED - 28/09/2005)}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : STANDARD CHARTERE BANK}

^{Date: 08/04/2003}

^{Comments : CHARGE NO : C200301547 (DISCHARGED - 24/06/2004)}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : NEDBANK LTD}

^{Date: 10/02/2003}

^{Comments : CHARGE NO : C200300538 (DISCHARGED - 07/11/2005)}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : ING BANK N.V.}

^{Date: 10/01/2002}

^{Comments : CHARGE NO : 200200154 (DISCHARGED - 16/08/2005)}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : ING BANK N.V.}

^{Date: 09/01/2002}

^{Comments : CHARGE NO : 200200109}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : BNP PARIBAS}

^{Date: 03/07/2001}

^{Comments : CHARGE NO : 200102988}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : BNP PARIBAS}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{STANDARD CHARTERED BANK}

^{NEDBANK BANK LTD,SINGAPORE BRANCH}

^{ING BANK N V [INTERNATIONALE NEDERLANDEN BANK N V ]}

^{DBS BANK LTD.}

^{COMMERZBANK AKTIENGESELLSCHAFT}

SHAREHOLDERS(S)

^{LIEW ENG LENG 3,809,700 Private Person}

^{Street : 10 BEDOK RESERVOIR VIEW}

^#15-31

^{THE CLEARWATER}

^{Town : SINGAPORE}

^{Postcode : 479236}

^{Country : Singapore}

^{MINING INTERNATIONAL HOLDINGS 9,690,300 Company}

^{Street : STAEDTLE 36 POSTFACH 685}

^{FL-9490 VADUZ LEIECHTENSTEIN}

^{Town : -}

^{Postcode : -}

^{Country : Liechtenstein}

FORMER SHAREHOLDER(S)

^{NG KAI SIANG ALBERT 1}

^{TEO CHEW KIAT 1}

^{MINING INTERNATIONAL HOLDINGS 65,998}

^{VENKATESH RAMAN 15,000}

^{LAI LEE YONG 270,000}

HOLDING COMPANY

^{MINING INTERNATIONAL HOLDINGS UF21506K % : 71.77}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality : AVERAGE

Liquidity : SUFFICIENT

Payments : REGULAR

Trend : LEVEL

Financial Situation : AVERAGE

FINANCIAL ELEMENTS

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

^{Date Account Lodged: 30/08/2006}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 1,494,451 519,111}

^{Investments 135,623 135,623}

^{Total Fixed Assets: 1,630,074 654,734}

^{Inventories: 7,494,554 3,456,122}

^{Receivables: 17,195,123 21,194,932}

^{Cash,Banks, Securitis: 6,711,175 8,675,198}

^{Other current assets: 923,639 618,762}

^{Total Current Assets: 32,324,491 33,945,014}

^{TOTAL ASSETS: 33,954,565 34,599,748}

^{--- LIABILITIES ---}

^{Equity capital: 7,841,333 5,134,729}

^{Profit & lost Account: 426,779 3,996,440}

^{Total Equity: 8,268,112 9,131,169}

^{Trade Creditors: 25,580,916 25,251,440}

^{Provisions: 185,479}

^{Other Short term Liab.: 105,537 31,660}

^{Total short term Liab.: 25,686,453 25,468,579}

^{TOTAL LIABILITIES: 25,686,453 25,468,579}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 177,160,419 174,317,254}

^{Purchases,Sces & Other Goods: 172,843,207 169,042,606}

^{Gross Profit: 4,317,212 5,274,648}

^{NET RESULT BEFORE TAX: -828,137 1,037,871}

^{Tax : 34,920 97,425}

^{Net income/loss year: -863,057 940,446}

^{Interest Paid: 237,142 100,995}

^{Depreciation: 208,174 148,541}

^{Directors Emoluments: 312,031 392,682}

^{Wages and Salaries: 1,188,639 1,179,417}

^{Financial Income: 274,278 116,100}

RATIOS

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

^{Turnover per employee: 6108979.97 6010939.79}

^{Net result / Turnover(%): -0.00 0.01}

^{Stock / Turnover(%): 0.04 0.02}

^{Net Margin(%): -0.49 0.54}

^{Return on Equity(%): -10.44 10.30}

^{Return on Assets(%): -2.54 2.72}

^{Net Working capital: 6638038.00 8476435.00}

^{Cash Ratio: 0.26 0.34}

^{Quick Ratio: 0.93 1.17}

^{Current ratio: 1.26 1.33}

^{Receivables Turnover: 34.94 43.77}

^{Leverage Ratio: 3.11 2.79}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Net Working capital : (Total current assets - Total short term liabilities)}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities + Receivables)/Total Short term Liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

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

FINANCIAL COMMENTS

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE ALTHOUGH TOTAL EQUITY DECLINED BY 9.45% TO US$8,268,112 IN FY 2005 (2004: US$9,131,169). THE FALL WAS DUE TO LOWER RETAINED EARNINGS OF US$426,779 (2004: US$3,996,440).}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 99.59% (2004: 99.15%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$25,580,916 (2004: US$25,251,440).}

^{TRADE CREDITORS CONSISTED OF THE FOLLOWING:}

^{* TRADE PAYABLE TO OUTSIDERS AND ACCRUED LIABILITIES - 2005: US$25,580,916 (2004: US$24,986,224)}

^{* TRADE PAYABLE TO RELATED PARTY - 2005: NIL (2004: US$265,216)}

^{IN ALL, LEVERAGE RATIO ROSE TO 3.11 TIMES, UP FROM 2.79 TIMES DUE TO A RISE IN TOTAL LIABILITIES AND SIGNIFICANT DECLINE OF TOTAL EQUITY. A LOWER RATIO WOULD BE MORE DESIRABLE AS THE LOWER THE RATIO, THE GREATER THE FINANCIAL SAFETY AND OPERATING FREEDOM FOR THE COMPANY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION HAD WEAKENED AS SEEN FROM THE FALL IN NET WORKING CAPITAL. NET WORKING CAPITAL FELL BY 21.69% TO US$6,638,038 DOWN FROM S$8,476,435 IN FY 2004.}

^{IN ADDITION, CURRENT AND QUICK RATIOS HAVE DECREASED TO 1.26 TIMES (2004: 1.33 TIMES) AND 0.93 TIMES (2004: 1.17 TIMES), RESPECTIVELY.}

^{PROFITABILITY:}

^{REVENUE ROSE BY 1.63% TO US$177,160,419 (2004: US$174,317,254). HOWEVER, SUBJECT POSTED A NET LOSS OF US$863,057, FROM NET PROFIT OF US$940,446 IN FY 2004. AS A RESULT, NET MARGIN DECLINED TO -0.49% IN FY 2005 (2004: 0.54%). NET LOSS WAS DUE TO THE INCREASED IN FINANCIAL EXPENSES BY 6.35 TIMES (2005: US$742,182; 2004: US$100,995) AND INCREASED IN ADMINISTRATIVE EXPENSES BY 17.93% (2005: US$3,492,425; 2004: US$2,961,525).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT BE EXPECTED IF REVENUE AND EARNINGS CANNOT BE MAINTAINED OR IMPROVED AND PAYMENTS BY TRADE DEBTORS ARE NOT FORTHCOMING. IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS SHORTENED TO 35 DAYS (2004: 44 DAYS).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{SHARE CAPITAL:}

^{DURING THE YEAR, THE COMPANY ISSUED 4,500,000 ORDINARY SHARES OF S$1.00 AT PAR BY THE CAPITALISATION OF S$4,500,000 EQUIVALENT TO US$2,706,604 OF ACCUMULATED PROFITS BY WAY OF AN ISSUE OF BONUS SHARES OF A TO 2 SHARES HELD. AT AN EXTRAORDINARY GENERAL MEETING OF THE COMPANY HELD ON 4TH JULY 2005, SHAREHOLDERS APPROVED THE FORMATION OF C.J.P.I. TO ENABLE EMPLOYEES OF THE COMPANY (OR ANY FUTURE SUBSIDIARY OF THE COMPANY), INCLUDING DIRECTOR HOLDING A SALARIES EMPLOYMENT OR OFFICE IN THE COMPANY (OR ANY FUTURE SUBSIDIARY OF THE COMPANY), TO ACQUIRE SHARES IN THE COMPANY.}

^{UNDER THE TERMS OF THE SCHEME:}

^{A) THE MAXIMUM NUMBER OS SHARES WHICH MAY BE HELD BY THE SCHEME SHALL BE 900,000 SHARES OF S$1 EACH UNTIL SUCH NUMBER IS OTHERWISE AMENDED BY SUBSEQUENT GENERAL MEETING OF THE COMPANY;}

^{B) THE INITIAL TRUSTEES OF THE SCHEME SHALL BE LIEW ENG LENG, SIM CHENG LIN AND MICHAEL SOSNOVIK (TRUSTEES);}

^{C) THE EMPLOYEES ELIGIBLE UNDER THE SCHEME SHALL INCLUDE DIRECTORS OF THE COMPANY HOLDING SALARIES EMPLOYMENT OR OFFICE IN THE COMPANY (OR IN ANY FUTURE SUBSIDIARY OF THE COMPANY); AND}

^{D) THE COMPANY MAY PROVIDE LOANS AND OTHER FINANCIAL ASSISTANCE IN THE TERMS SET OUT IN THE SCHEME.}

^{THE SCHEME IS ADMINISTERED BY THE ABOVE MENTIONED TRUSTEES.}

^{DURING THE FINANCIAL YEAR, AN AGGREGATE OF 270,000 SHARES OF S$1 EACH IN THE CAPITAL OF THE COMPANY (REPRESENTING 3% OF THE COMPANY'S EXISTING ISSUED SHARE CAPITAL) WAS ACQUIRED UNDER THE SCHEME BY THE TRUSTEES FROM LAI LEE YOUNG FOR AN AGGREGATE PRICE OF S$418,000 (EQUIVALENT TO US$248,042).}

^{CONTINGENT LIABILITIES:}

^{* BANK GUARANTEES IN FAVOUR OF A RELATED PARTY (A) - 2005: NIL (2004: US$802,800)}

^{* PROPERTIES MORTGAGED (B) - 2005: US$348,530 (2004: NIL)}

^{THE MAXIMUM ESTIMATED AMOUNT THE COMPANY COULD BECOME LIABLE AND NOT PROVIDED FOR IS AS SHOWN ABOVE.}

^{A) THESE RELATE TO BANKER GUARANTEES ISSUED TO A CUSTOMER IN RESPECT OF AN AMOUNT OWING BY A RELATED PARTY.}

^{B) THESE RELATE TO PROPERTY MORTHGAGED TO BANKERS FOR FACILITIES GRANTED TO A RELATED PARTY.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 30/07/1999 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "CJP INTERNATIONAL PTE LTD".}

^{AS AT 17/08/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 13,500,000 SHARES, OF A VALUE OF S$13,500,000.}

^{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; BULK-TRADER AND DISTRIBUTOR OF CHEMICALS AND PLASTICS RAW MATERIALS}

^{THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: CHEMICALS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE OF A BULK TRADER AND DISTRIBUTOR OF CHEMICALS (INCLUDING PETROCHEMICALS AND PETROLEUM-RELATED PRODUCTS) AND PLASTIC RAW MATERIALS.}

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

^BACKGROUND:

^{* CJP INTERNATIONAL PTE LTD IS A MEMBER OF THE SOUTH AFRICAN-BASED C.J. PETROW GROUP, WAS INCORPORATED IN SINGAPORE IN JULY 1999.}

^{* SUBJECT CONDUCTS BUSINESS AS AN INTERNATIONAL TRADER OF BULK PETROCHEMICALS AND PLASTIC RAW MATERIALS. IT HAS ESTABLISHED AN INTERNATIONAL SALES NETWORK WITH INTERESTS SPANNING CHINA, SOUTH EAST ASIA, AFRICA AND EUROPE, WHICH HAS FACILITATED THE SIGNIFICANT GROWTH OF ITS BUSINESS OPERATIONS SINCE ITS INCORPORATION.}

^ACTIVITIES:

^{* INTERNATIONAL TRADER AND SUPPLIER OF BULK PETROCHEMICALS AND PLASTIC RAW MATERIALS}

^PRODUCTS:

^{* CHEMICAL PRODUCTS}

^{* PLASTIC RESIN PRODUCTS}

^TRADENAME:

^{* PETCOLOR (PTE COLOR MASTERBATCHES)}

^{SUBJECT IS A MEMBER OF:}

^{* SINGAPORE PLASTIC INDUSTRY ASSOCIATION}

^{NUMBER OF EMPLOYEES:}

^{* 29 (AS OF 2006)}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 23/08/2007, NO TRADE INFORMATION WAS AVAILABLE AS SUBJECT'S PERSONNEL DECLINED TO PROVIDE.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{3 ANSON ROAD}

^#13-03

^{SPRINGLEAF TOWER}

^{SINGAPORE 079909}

^{DATE OF CHANGE OF ADDRESS: 23/09/2004}

^{- PROPERTY RECORD WAS NOT AVAILABLE}

^{WEBSITE: www.cjpintl.com}

^{EMAIL: -}

MANAGEMENT

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

^{(1) JOHN CHRIST PETROW, A SOUTH AFRICAN}

^{- BASED IN UNITED KINGDOM}

^{(2) MICHAEL SOSNOVIK, A SOUTH AFRICAN}

^{- BASED IN SOUTH AFRICA}

^{(3) JACK MITCHELL GINSBERG, A SOUTH AFRICAN}

^{- BASED IN SOUTH AFRICA}

^{(4) LISA ELENI PETROW, A SWISS}

^{- BASED IN SWITZERLAND}

^{(5) LIEW ENG LENG, A SINGAPOREAN}

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

^{(6) ONG CHIN SENG, A SINGAPOREAN}

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

^{(7) TEO CHEW KIAT, A SINGAPOREAN}

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

^{C.J. PETROW CHEMICALS (FAR EAST) PTE 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.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE DECLINED BY 7.5% IN Q1 2007. EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 7.4%. SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, INDUSTRIAL AND CONSTRUCTION MACHINERY REPORTED DECLINES OF 11.6% TO 23.8%.

HOWEVER, WHOLESALERS OF FOOD, BEVERAGES AND TOBACCO REGISTERED HIGHER TURNOVER OF 5.4%.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE IN QUARTER 1 2007 FELL BY 7.6%. EXCLUDING PETROLEUM, FOREIGN SALES DECLINED BY 8.0%. MOST WHOLESALE SECTORS REPORTED LOWER OVERSEAS RECEIPTS IN QUARTER 1 2007 COMPARED TO THE PREVIOUS QUARTER, EXCEPT HOUSEHOLD EQUIPMENT AND FURNITURE SECTOR. SHIP CHANDLERS & BUNKERING REPORTED THE LARGEST DECLINE OF 18.3% IN QUARTER 1 2007, FOLLOWED BY FOOD BEVERAGES & TOBACCO SECTOR OF 17.7%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE MARGINALLY BY 0.7% IN QUARTER 2 2007, COMPARED TO QUARTER 2 2006. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.1%. SALES OF OPTICAL GOODS & BOOKS, FURNITURE & HOUSEHOLD EQUIPMENT AND SUPERMARKETS ENJOYED STRONG GROWTHS OVER A YEAR AGO. PROVISION & SUNDRY SHOPS, WATCHES AND JEWELLERY, DEPARTMENT STORES AND WEARING APPAREL & FOOTWEAR SECTORS ALSO REPORTED HIGHER SALES OF 4.35 TO 5.9% RESPECTIVELY.

HOWEVER, RETAILERS OF MOTOR VEHICLES, FOOD & BEVERAGES, TELECOMMUNICATIONS APPARATUS & COMPUTERS AND PETROL SERVICES STATIONS REPORTED LOWER SALES.

OUTLOOK

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

RETAIL TRADE FIRMS ANTICIPATE BUSINESS TO BE LESS BRISK FOR THE NEXT 6 MONTHS. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

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