MIRA INFORM REPORT

Report Date :

01.12.2007

IDENTIFICATION DETAILS

Name :	GE PACIFIC PRIVATE LIMITED
Registered Office :	^240 Tanjong Pagar Road, #02-00, Ge Tower, Singapore – 088540
Country :	^Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^04/03/1970
Legal Form :	^Pte Ltd
Line of Business :	Investment Holding Company, the Provision of Management and Operational Headquarters Services, Financial and Treasury Services to related Corporations and Sales, Distribution and Service of Ge Products

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 :	Exists

Subject Company

GE PACIFIC PRIVATE LIMITED

Line Of Business 

INVESTMENT HOLDING COMPANY, THE PROVISION OF MANAGEMENT AND OPERATIONAL HEADQUARTERS SERVICES, FINANCIAL AND TREASURY SERVICES TO RELATED CORPORATIONS AND SALES, DISTRIBUTION AND SERVICE OF GE PRODUCTS

Parent Company

GE PACIFIC HOLDINGS PTE. LTD.

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

COMPANY

Sales : US$ 528,563,611

Networth : US$ 2,064,402,891

Paid-Up Capital : US$ 12,881,250

Net result : US$ 383,840,623

Net Margin(%) : 72.62

Return on Equity(%) : 18.59

Leverage Ratio : 0.06

COMPANY IDENTIFICATION

^{Subject Company : GE PACIFIC PRIVATE LIMITED}

^{Former Name : ELECTRONIC COMPONENTS OF GENERAL}

^{Business Address : 240 TANJONG PAGAR ROAD}

^#02-00

^{GE TOWER}

^{Town : SINGAPORE}

^{Postcode : 088540}

^{County : -}

^{Country : Singapore}

^{Telephone : 6220 7022}

^{Fax : 6226 2600}

^{ROC Number : 197000148E}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{ELECTRONIC COMPONENTS OF GENERAL ELECTRIC (U.S.A.) PRIVATE LIMITED DATE:}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 04/03/1970}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 528,563,611}

^{Networth : 2,064,402,891}

^{Capital : -}

^{Paid-Up Capital : 12,881,250}

^{Employees : 383}

^{Net result : 383,840,623}

^{Share value : 1}

^{Auditor : KPMG}

^{BASED ON ACRA'S RECORD AS AT 13/11/2007}

^{NO. OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY: 31,482,709 SGD 31,482,709.00}

^{PAID-UP ORDINARY: - SGD 31,482,709.00}

REFERENCES

^{Litigation : Yes}

^{Company status : TRADING}

^{Started : 04/03/1970}

PRINCIPAL(S)

^{RUBY CHEAH S0082605G Director}

DIRECTOR(S)

^{RUBY CHEAH S0082605G Director}

^{Appointed on : 25/11/1988}

^{Street : 10 SWISS VIEW}

^{Town : SINGAPORE}

^{Postcode : 288016}

^{Country : Singapore}

^{RUBY CHEAH S0082605G Company Secretary}

^{Appointed on : 05/12/1998}

^{Street : 10 SWISS VIEW}

^{Town : SINGAPORE}

^{Postcode : 288016}

^{Country : Singapore}

^{STEPHEN ARTHUR MALOY 701150014 Director}

^{Appointed on : 25/11/1988}

^{Street : HOUSE 67, LE CHATEAU LANE 2000}

^{JANE HE RD, CHANGNING DISTRICT}

^PRC

^{Town : SHANGHAI}

^{Postcode : 200335}

^{Country : China}

^{LOW TOCK CHEONG COLIN S1485022H Director}

^{Appointed on : 01/09/2005}

^{Street : 4 JALAN NOVENA SELATAN}

^{Town : SINGAPORE}

^{Postcode : 308585}

^{Country : Singapore}

^{SANJAY SALHOTRA S2652079G Alternate Director}

^{Appointed on : 19/10/2007}

^{Street : 2 PEACH GARDEN}

^#06-02

^{PEACH GARDEN}

^{Town : SINGAPORE}

^{Postcode : 437603}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{QUEK NEO KIA S0050563C}

^{DYKES JAMES E S01235965}

^{MARQUIS WILLIAM P S06144352}

^{PATRICIA SEET GEOK NEO S1465985D}

^{LEE YOKE YING MAUREEN S2009545H}

^{NELSON RALPH E SA1765510}

^{BRITT NELSON FAIRCLOTH SB1006546}

^{KOERITZ ERWIN M SB2514019}

^{RITCEY JAMES W C185295}

^{WELLS GEORGE D C492315}

^{HOLM JOHN WILLIAM SZ3018397}

^{SMART J LARRY SZ5485159}

^{HUGHES RONALD MARK SZ6785747}

^{RINE JAMES L Unknown}

^{ROBERT HENRY ALBAN FARROW 740177116}

^{XIE FANG S2650302G}

ACTIVITY(IES)

^{HOLDING COMPANIES Code:11320}

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD AS AT 13/11/2007}

^{1. OTHER INVESTMENT HOLDING COMPANIES; INVESTMENT HOLDING COMPANIES}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{CITIBANK N.A.}

ASSOCIATED COMPANY(IES)

^{GEM PC LTD Japan}

^{GE PACIFIC (MAURITIUS) LTD. Mauritania}

^{GE INDIA INDUSTRIAL (PRIVATE) LTD India}

^{AIRFOIL TECHNOLOGIES INTERNATIONAL Singapore}

^{62 LOYANG WAY}

^SINGAPORE

SHAREHOLDERS(S)

^{GE PACIFIC HOLDINGS PTE. LTD. 31,482,709 Company}

^{Street : 240 TANJONG PAGAR ROAD}

^#12-00

^{GE TOWER}

^{Town : SINGAPORE}

^{Postcode : 088540}

^{Country : Singapore}

FORMER SHAREHOLDER(S)

^{GENERAL ELECTRIC CO 30,900,066}

^{GENERAL ELECTRIC COMPANY 31,482,709}

HOLDING COMPANY

^{GE PACIFIC HOLDINGS PTE. LTD. 199801196D % : 100}

SUBSIDIARY(IES)

^{GE ENERGY SERVICES ASIA PTE LTD}

^{SABIC INNOVATIVE PLASTICS SINGAPORE PTE. LTD.}

^{GE APPLIANCES TAIWAN CORPORATION}

^{GE MONOMER (HOLDINGS) PTE. LTD.}

^{(F.K.A. GETOS SINGAPORE PTE LTD)}

^{GE MEDICAL SYSTEMS (INDIA) PTE LTD}

^{GE MEDICAL SYSTEMS TAIWAN LTD.}

^{GE BETZ WATER & PROCESS CHEMICALS (WUXI) CO LTD}

^{GE (CHINA) RESEARCH & DEVELOPMENT CENTER CO LTD}

^{GE (CHINA) CO., LTD.}

^{GE HYDRO EQUIPMENT ASIA CO LTD}

^{GE LIGHTING CO., LTD.}

^{SHANGHAI GE BREAKERS CO., LTD.}

^{SHANGHAI GE GUANGDIAN CO. LTD}

^{GE PLASTECH SUNSHEET (ZHONGSHAN) CO. LTD}

^{GE PLASTICS CHINA LTD.}

^{GE PLASTICS SHANGHAI CO., LTD.}

^{MOMENTIVE PERFORMANCE MATERIALS (NANTONG) CO., LTD}

^{(F.K.A. GE TOSHIBA SILICONES (NANTONG) CO LTD)}

^{PT GE LIGHTING INDONESIA}

^{GE PLASTICS KOREA LTD}

^{GE CONSUMER PRODUCTS JAPAN, LTD.}

^{GE PLASTICS (THAILAND) CO., LTD.}

^{GE ENERGY (SINGAPORE) PTE. LTD.}

^{GE (USA) CONTROLS PRIVATE LIMITED}

^{SABIC INNOVATIVE PLASTICS (SEA) PTE. LTD}

^{(F.K.A. GE POLYMERSHAPES SINGAPORE PL)}

^{GE INFRASTRUCTURE (SHANGHAI) CO. LTD.}

^{GE QUARTZ (CHINA) CO. LTD}

^{GE HEALTHCARE PTE LTD}

^{(F.K.A. AMERSHAM HEALTH PTE LTD)}

^{GE ENERGY SHENYANG CO LTD}

^{NEW CHINA CONTROL SYSTEMS LTD}

^{XIN HUA CONTROL ENGINEERING CO. LTD}

^{GE (SHANGHAI) TRADING CO. LTD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : DOWNWARD}

^{Financial Situation : AVERAGE}

LITIGATION(S)

^{Type Of Case : Magistrate Court - W/S}

^{Case Number : MCS14268/2003}

Defendant GE PACIFIC PRIVATE LIMITED ROC # : 197000148E

^{Type Of Case : High Court - W/S}

^{Case Number : HWS01370/2002}

Defendant GE PACIFIC PRIVATE LIMITED ROC # : 197000148E

FINANCIAL ELEMENTS

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

^{Date Account Lodged: 31/08/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp 582,600,000}

^{Intangible Fixed Assets: 9,060,105 15,858,058}

^{Tangible Fixed Assets: 8,381,619 4,473,751}

^{Investments 903,692,611 894,893,756}

^{Total Fixed Assets: 921,134,335 1,497,825,565}

^{Inventories: 27,802,768 23,173,211}

^{Receivables: 71,441,966 49,637,093}

^{Cash,Banks, Securitis: 16,775,711 16,298,249}

^{Other current assets: 1,145,285,195 183,168,250}

^{Total Current Assets: 1,261,305,640 272,276,803}

^{TOTAL ASSETS: 2,182,439,975 1,770,102,368}

^{--- LIABILITIES ---}

^{Equity capital: 12,881,250 12,881,250}

^{Reserves: - -87,243}

^{Reeval. Reserves: 108,931,666 108,931,666}

^{Profit & lost Account: 1,942,589,975 1,550,799,237}

^{Total Equity: 2,064,402,891 1,672,524,910}

^{L/T deffered taxes: 876,589 2,075,412}

^{Total L/T Liabilities: 876,589 2,075,412}

^{Trade Creditors: 109,446,039 76,566,491}

^{Provisions: 7,714,456 10,747,744}

^{Other Short term Liab.: 8,187,811}

^{Total short term Liab.: 117,160,495 95,502,046}

^{TOTAL LIABILITIES: 118,037,084 97,577,458}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 528,563,611 669,693,876}

^{NET RESULT BEFORE TAX: 388,126,784 412,285,317}

^{Tax : 4,286,161 4,566,741}

^{Net income/loss year: 383,840,623 407,718,576}

^{Interest Paid: 1,363,008 845,848}

^{Depreciation: 2,820,691 5,509,959}

^{Dividends: 2,049,795,000 55,000,000}

^{Wages and Salaries: 65,751,209 68,687,634}

^{Financial Income: 10,008,012 13,526,814}

RATIOS

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

^{Turnover per employee: 1380061.65 1748547.98}

^{Net result / Turnover(%): 0.73 0.61}

^{Stock / Turnover(%): 0.05 0.03}

^{Net Margin(%): 72.62 60.88}

^{Return on Equity(%): 18.59 24.38}

^{Return on Assets(%): 17.59 23.03}

^{Dividends Coverage: 0.19 7.41}

^{Net Working capital: 1144145145.00 176774757.00}

^{Cash Ratio: 0.14 0.17}

^{Quick Ratio: 0.75 0.69}

^{Current ratio: 10.77 2.85}

^{Receivables Turnover: 48.66 26.68}

^{Leverage Ratio: 0.06 0.06}

^{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}

^{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 23.43% FROM US$1,672,524,910 IN FY 2005 TO US$2,064,402,891 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$1,942,589,975 (2005: US$1,550,799,237); A RISE OF 25.26% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 93.42% (2005: 80.17%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$109,446,039 (2005: US$76,566,491). THE BREAKDOWN IS AS FOLLOWS:}

^{-TRADE PAYABLES AND ACCRUED OPERATING EXPENSES - 2006: US$31,192,398 (2005: US$22,841,568)}

^{- RELATED CORPORATIONS - 2006: US$78,253,641 (2005: US$53,724,923)}

^{IN ALL, LEVERAGE RATIO REMAIN AT 0.06 TIMES AS A RESULT OF A PROPORTIONATE RISE IN BOTH THE TOTAL EQUITY AND TOTAL LIABILITIES.}

^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 10.77 TIMES, UP FROM 2.85 TIMES AND QUICK RATIO ROSE TO 0.75 TIMES FROM 0.69 TIMES IN FY 2005.}

^{NET WORKING CAPITAL ROSE BY 5.47 TIMES FROM US$176,774,757 IN FY 2005 TO US$1,144,145,145.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{CASH AND CASH EQUIVALENTS INCLUDE FUNDS IN THE CASH POOL OF THE COMPANY MANAGED BY THE COMPANY AS PART OF THE CASH MANAGEMENT AND TREASURY ACTIVITIES OF US$12,535,615 (2005: US$14,507,844). THE CASH POOLS BEAR INTEREST RANGING FROM 3.97% TO 5.55% (2005: 2.31% TO 4.30%) PER ANNUM.}

^{PROFITABILITY:}

^{REVENUE POSTED A DECLINE OF 21.07% FROM US$669,693,876 IN FY 2005 TO US$528,563,611 AND NET PROFIT FELL BY 5.86% TO US$383,840,623 (2005: US$407,718,576). HENCE, NET MARGIN ROSE TO 72.62% (2005: 60.88%).}

^REVENUE:

^{-SALES, DISTRIBUTION AND SERVICE - 2006: US$319,097,906 (2005: US$276,539,798)}

^{-FEE FROM MANAGEMENT AND OHQ SERVICES - 2006: US$3,320,806 (2005: US$3,212,285)}

^{-INTEREST FROM FINANCE AND TREASURY CENTRE ACTIVITIES}

^{- 2006: US$641,585 (2005: US$468,569)}

^{-INTEREST FROM LOANS TO RELATED CORPORATIONS - 2006: US$28,745,453 (2005: US$7,114,014)}

^{-INTEREST FROM BANK - 2006: US$10,008,012 (2005: US$13,526,814)}

^{-DIVIDEND INCOME - 2006: US$166,749,849 (2005: US$368,832,396)}

^{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 US$1,363,008 IN FY 2006 (2005: US$845,848).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-LOANS OWING BY RELATED CORPORATIONS - 2006: - (2005: US$582,600,000)}

^{BREAKDOWN OF THE TOTAL PROFIT FOR THE YEAR:}

^{PROFIT FROM CONTINUING OPERATIONS - 2006: US$383,840,623 (2005: US$407,718,576)}

^{DISCONTINUED OPERATIONS}

^{(LOSS)/PROFIT FROM DISCONTINUED OPERATIONS (NET OF TAX)}

^{- 2006: US$-508,906 (2005: US$30,894,980)}

^{PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY}

^{- 2006: US$383,331,717 (2005: US$438,613,556)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{DISCONTINUED OPERATIONS}

^{DISTRIBUTION CENTRE (DC), PART OF THE HEALTHCARE DIVISION ON 01/01/2006, THE COMPANY SOLD ITS ENTIRE DISTRIBUTION CENTRE TO ITS RELATED CORPORATION AS PART OF ITS REGIONAL RESTRUCTURING EXERCISE. AT 31/12/2005, THE RESULTS OF THE DISCONTINUED OPERATION HAVE BEEN PRESENTED SEPARATELY FROM THOSE OF THE CONTINUING OPERATIONS AND THE RELEVANT ASSETS AND LIABILITIES HAVE BEEN CLASSIFIED ON BALANCE SHEET AS "ASSETS OF DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE".}

^{MARQUETTE SEGMENT (MQT), PART OF THE HEALTHCARE DIVISION IN NOVEMBER 2006, THE COMPANY SOLD ITS BUSINESS AND RELATED ASSETS AND LIABILITIES OF THE MARQUETTE BUSINESS TO ITS IMMEDIATE HOLDING COMPANY FOR US$17,700,000.}

^{SUBSEQUENT EVENTS}

^{ON 21/05/2007, THE ULTIMATE HOLDING COMPANY, GENERAL ELECTRIC COMPANY ANNOUNCED THE DISPOSITION OF THE PLASTICS BUSINESS.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 04/03/1970 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "ELECTRONIC COMPONENTS OF GENERAL ELECTRIC (U.S.A.) PRIVATE LIMITED ".}

^{SUBSEQUENTLY, ON 23/05/1990, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "GE PACIFIC PRIVATE LIMITED".}

^{AS AT 13/11/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 31,482,709 SHARES OF A VALUE OF S$31,482,709.}

^{PRINCIPAL ACTIVITIES:}

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

^{(1) OTHER INVESTMENT HOLDING COMPANIES; INVESTMENT HOLDING COMPANIES}

^{(2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); SALES, DISTRIBUTION AND SERVICE OF GE PRODUCTS}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF AN INVESTMENT HOLDING COMPANY, THE PROVISION OF MANAGEMENT AND OPERATIONAL HEADQUARTERS SERVICES, FINANCIAL AND TREASURY SERVICES TO RELATED CORPORATIONS AND SALES, DISTRIBUTION AND SERVICE OF GE PRODUCTS.}

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

^BACKGROUND:

^{* THE SUBJECT IS PART OF THE GE GROUP.IT IS A DIVERSIFIED TECHNOLOGY, MEDIA AND FINANCIAL SERVICES COMPANY.}

^{SINGAPORE AND SOUTH EAST ASIA BUSINESS INCLUDES:}

^{* CONSUMER FINANCE}

^{* COMMERCIAL FINANCE WHICH PROVIDES SME AND ENTERPRISE FINANCING SOLUTIONS}

^{* GE HEALTHCARE}

^{* CNBC ASIA-PACIFIC}

^{* A NUMBER OF KEY GE BUSINESSES HAVE THEIR REGIONAL HEADQUARTERS IN SINGAPORE WHERE THEY DIRECT THE COMPANY'S OPERATIONS IN SOUTHEAST ASIA AND IN SOME CASES, THE ENTIRE ASIA PACIFIC BASIN.}

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

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^{* AMERICAN CHAMBER OF COMMERCE}

^{* SECURITY SYSTEMS ASSOCIATION OF SINGAPORE}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 30/11/2007, THE FOLLOWING WAS GATHERED:}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* SECURITY}

^{THE IMMEDIATE HOLDING COMPANY DURING THE FINANCIAL YEAR WAS GE PACIFIC HOLDINGS PTE LTD, INCORPORATED IN SINGAPORE. THE ULTIMATE HOLDING CORPORATION IS GENERAL ELECTRIC COMPANY, INCORPORATED IN THE UNITED STATES OF AMERICA.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE; 2004: 383; 2003: 361; 2002: 384)}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE ON 30/11/2007.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{240 TANJONG PAGAR ROAD}

^{#12-00 GE TOWER}

^{SINGAPORE 088540}

^{DATE OF CHANGE OF ADDRESS: 20/09/1999}

^{OTHER BUSINESS ADDRESSES:}

^{240 TANJONG PAGAR ROAD}

^{#02-00 GE TOWER}

^{SINGAPORE 088540}

^{- THE SUBJECT OCCUPIES THE WHOLE BUILDING.}

^{ADDRESS PROVIDED BY CLIENT:}

^{GE SECURITY}

^{50 KALLAN Q AVEN}

^#03-01

^{NOEL CORPORATE BUILDING}

^{SINGAPORE 339505}

^{PHONE: 6391 9300}

^{FAX: 63919306}

^WEBSITE:

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

^EMAIL:

^-

MANAGEMENT

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

^{1) STEPHEN ARTHUR MALOY, AN AMERICAN}

^{- BASED IN CHINA.}

^{2) SANJAY SALHOTRA, A SINGAPORE PERMANENT RESIDENT}

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

^{3) RUBY CHEAH, A SINGAPOREAN}

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

^{GENERAL ELECTRIC (USA) CONTROLS PTE LTD}

^{GE MOTORS PRIVATE LIMITED}

^{GE AVIATION SERVICE OPERATION PTE LTD}

^{GE PLASTICS SINGAPORE PRIVATE LIMITED}

^{GE SUPPLY ASIA PTE LTD}

^{AIRFOIL TECHONOLOGIES SINGAPORE PTE LTD}

^{GE FANUC AUTOMATION ASIA PACIFIC PTE LTD}

^{AIRFOIL TECHNOLOGIES INTERNATIONAL INC}

^{AIRFOIL TECHONOLOGIES PTE LTD}

^{GE CAPITAL SERVICES PTE LTD}

^{4) LOW TOCK CHEONG COLIN, 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.

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%)

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