MIRA INFORM REPORT

Report Date :

26.12.2007

IDENTIFICATION DETAILS

Name :	BOROUGE PTE. LTD.
Registered Office :	^1 George Street, #18-01, Singapore - 049145
Country :	^Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^09/04/1998
Com. Reg. No.:	^199801755H
Legal Form :	^Pte Ltd
Line of Business :	Trading in Polyolefins Products

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

BOROUGE PTE. LTD.

Line Of Business 

TRADING IN POLYOLEFINS PRODUCTS

Parent Company

--

Financial Elements

FY 2007

COMPANY

Sales : US$890,206,827

Networth : US$7,874,068

Paid-Up Capital : US$3,201,780

Net result : US$3,610,962

Net Margin(%) : 0.41

Return on Equity(%) : 45.86

Leverage Ratio : 27.11

COMPANY IDENTIFICATION

^{Subject Company : BOROUGE PTE. LTD.}

^{Business Address: 1 GEORGE STREET}

^#18-01

^{Town: SINGAPORE}

^{Postcode: 049145}

^{Country: Singapore}

^{Telephone: 6275 4100}

^{Fax: 6377 1233}

^{ROC Number: 199801755H}

^{Reg. Town:}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 09/04/1998}

^{Summary year : 31/12/2005}

^{Sales: 890,206,827}

^{Networth : 7,874,068}

^Capital:

^{Paid-Up Capital: 3,201,780}

^Employees:

^{Net result : 3,610,962}

^{Share value:}

^{BASED ON ACRA'S RECORD AS AT 18/12/2007}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 5,500,000 SGD 5,500,000.00}

^{PAID-UP ORDINARY - SGD 5,500,000.00}

^{AUDITOR: ERNST & YOUNG}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 09/04/1998}

PRINCIPAL(S)

^{SUSAN MARY DE SILVA S2505139D Director}

DIRECTOR(S)

^{JOHN JEFFREY TAYLOR 035257554 Director}

^{Appointed on : 03/08/2007}

^{Street : SALMGASSE 23/17 (WIEN)}

^{Town: VIENNA}

^{Postcode: 1030}

^{Country: Austria}

^{HENRY SPERLE 20709202 Director}

^{Appointed on : 31/12/2003}

^{Street : PARALLELVEJ 16, DK-2800}

^KONGENS

^{Town: LYNGBY}

^Postcode:

^{Country: Denmark}

^{MATAR HAMDAN SULTAN HAMAD AMERI A0002285 Director}

^{Appointed on : 01/04/2007}

^{Street : VILLA NO. 60 ROYAL VILLAS}

^{(BEHIND MARINA MALL)}

^{Town: ABU DHABI}

^Postcode:

^{Country: United Arab Emirates}

^{HESHAM ABDULLA ABBAS AHMAD A1513613 Director}

^{Appointed on : 25/07/2007}

^{Street : VILLA NO. 1/24, AL FALAH STREET}

^{Town: ABU DHABI}

^Postcode:

^{Country: United Arab Emirates}

^{MUBARAK SUHAIL MUBARAK GHANEM A1745548 Director}

^{Appointed on : 01/04/2007}

^{Street : VILLA NO. 8, STREET NO. 4}

^{AL KHALEEJ AL ARABIA STREET}

^{Town: ABU DHABI}

^Postcode:

^{Country: United Arab Emirates}

^{HUBERT PUCHNER G5637306W Manager}

^{Appointed on : 01/11/2001}

^{Street : 15 ARDMORE PARK}

^#20-03

^{ARDMORE PARK}

^{Town: SINGAPORE}

^{Postcode: 259959}

^{Country: Singapore}

^{KANG CHOON HWEE ALBAN S1318801G Company Secretary}

^{Appointed on : 20/08/1999}

^{Street : 3 JALAN PANDAN}

^{Town: SINGAPORE}

^{Postcode: 288788}

^{Country: Singapore}

^{SUSAN MARY DE SILVA S2505139D Director}

^{Appointed on : 09/04/1998}

^{Street : 5 PANDAN VALLEY}

^#02-705

^{BAUHINIA TERRACE}

^{Town: SINGAPORE}

^{Postcode: 597629}

^{Country: Singapore}

^{SUSAN MARY DE SILVA S2505139D Company Secretary}

^{Appointed on : 15/05/1998}

^{Street : 5 PANDAN VALLEY}

^#02-705

^{BAUHINIA TERRACE}

^{Town: SINGAPORE}

^{Postcode: 597629}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{HARALD JOSEF MAG.DR. HAMMER MBA J 01332437}

ACTIVITY(IES)

^{POLYSTYRENE PRODUCTS Code:17260}

^{TRADING COMPANIES Code:22190}

^{BASED ON ACRA'S RECORD AS AT 18/12/2007}

^{1) WHOLESALE OF OTHER SPECIFIC COMMODITIES; TRADING OF POLYOLEFINS PRODUCTS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{BOREALIS A/S 2,750,000 Company}

^{Street : PARALLELVEJ 16, DK-2800}

^KONGENS

^{Town: LYNGBY}

^Postcode:

^{Country: Denmark}

^{ABU DHABI NATIONAL OIL COMPANY 2,750,000 Company}

^{Street : P O BOX 898}

^{Town: ABU DHABI}

^Postcode:

^{Country: United Arab Emirates}

SUBSIDIARY(IES)

^{BOROUGE HONG KONG LIMITED}

^{BOROUGE (INDIA) PRIVATE LIMITED}

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: 27/07/2006}

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

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 1,452,234 1,896,120}

^{Total Fixed Assets: 1,452,234 1,896,120}

^{Receivables: 175,460,072 127,940,658}

^{Cash,Banks, Securitis: 7,094,328 6,261,115}

^{Other current assets: 37,361,206 30,113,196}

^{Total Current Assets: 219,915,606 164,314,969}

^{TOTAL ASSETS: 221,367,840 166,211,089}

^{--- LIABILITIES ---}

^{Equity capital: 3,201,780 3,201,780}

^{Reserves: -372 19,033}

^{Profit & lost Account: 4,672,660 7,061,698}

^{Total Equity: 7,874,068 10,282,511}

^{L/T deffered taxes: 60,589 172,052}

^{Other long term Liab.: 527,189 648,402}

^{Total L/T Liabilities: 587,778 820,454}

^{Trade Creditors: 206,847,179 149,085,614}

^{Prepay. & Def. charges: 1,046,673 2,235,252}

^{Provisions: 374,796 625,292}

^{Other Short term Liab.: 4,637,346 3,161,966}

^{Total short term Liab.: 212,905,994 155,108,124}

^{TOTAL LIABILITIES: 213,493,772 155,928,578}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 890,206,827 682,158,061}

^{Export net sales : 856,424,513 652,668,750}

^{Gross Profit: 33,782,314 29,489,311}

^{NET RESULT BEFORE TAX: 4,255,185 4,819,010}

^{Tax : 644,223 992,248}

^{Net income/loss year: 3,610,962 3,826,762}

^{Depreciation: 496,685 425,756}

^{Dividends: 6,000,000 -}

^{Wages and Salaries: 12,291,291 11,346,526}

RATIOS

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

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

^{Net Margin(%): 0.41 0.56}

^{Return on Equity(%): 45.86 37.22}

^{Return on Assets(%): 1.63 2.30}

^{Dividends Coverage: 0.60 0.60}

^{Net Working capital: 7009612.00 9206845.00}

^{Cash Ratio: 0.03 0.04}

^{Quick Ratio: 0.86 0.87}

^{Current ratio: 1.03 1.06}

^{Receivables Turnover: 70.96 67.52}

^{Leverage Ratio: 27.11 15.16}

^{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)/1000}

^{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 DECLINED BY 23.42% FROM US$10,282,511 IN FY 2004 TO US$7,874,068 IN FY 2005 THIS WAS DUE TO LOWER ACCUMULATED PROFIT OF US$4,672,660 (2004 US$7,061,698); A DECLINE OF 33.83% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 97.15% (2004: 96.12%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$206,847,179 (2004 US$149,085,614).}

^{IN THE LONG-TERM, SUBJECT WAS LARGELY FINANCED BY LONG TERM LIABILITY TO A RELATED PARTY WHICH AMOUNTS TO US$527,189 (2004: US$648,402).}

^{IN ALL, LEVERAGE RATIO ROSE FROM 15.16 TO 27.11 AS A RESULT OF A FALL IN TOTAL EQUITY AND A RISE IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.03 TIMES, FROM 1.06 TIMES AND QUICK RATIO FELL TO 0.86 TIMES FROM 0.87 TIMES IN FY 2004}

^{NET WORKING CAPITAL DECLINE BY 23.86% FROM US$9,206,845 IN FY 2004 TO US$7,009,612.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 30.50% FROM US$682,158,061 IN FY 2004 O US$890,206,827 BUT NET PROFIT DROPPED BY 5.64% TO US$3,610,962 (2004 US$3,826,762). THIS COULD BE DUE TO LOWER GROSS MARGIN OF 3.79% IN FY 2005 (2004: 4.32%). HENCE, NET MARGIN FELL TO 0.41% (2004: 0.56%).}

^{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, SUBJECT DID NOT INCUR ANY INTEREST EXPENSE FOR THE FINANCIAL YEARS UNDER REVIEW.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 09/04/1998 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "BOROUGE PTE. LTD.".}

^{AS AT 18/12/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 5,500,000 SHARES, OF A VALUE OF S$5,500,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF OTHER SPECIFIC COMMODITIES; TRADING OF POLYOLEFINS PRODUCTS}

^{2) ACTIVITIES NOT ADEQUATELY DEFINED; PROVISION OF TECHNICAL SERVICES IN RELATION TO THE ABOVE}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TRADING IN POLYOLEFINS PRODUCTS.}

^{THE COMPANY IS JOINTLY-OWNED BY ABU DHABI NATIONAL OIL COMPANY, INCORPORATED IN UNITED ARAB EMIRATES AND BOREALIS A/S, INCORPORATED I DENMARK. THE COMPANY IS A LIMITED LIABILITY COMPANY WHICH IS INCORPORATED IN SINGAPORE.}

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

^{BOROUGE IS A LEADING PROVIDER OF INNOVATIVE PLASTICS SOLUTIONS. WITH A HERITAGE OF RELIABLE CUSTOMER PARTNERSHIP AND VALUE CREATION THROUGH INNOVATION, BOROUGE IS A UNIQUE COMPANY THAT BRINGS TOGETHER THE VERY BEST OF EUROPE AND THE MIDDLE EAST.}

^{ESTABLISHED IN 1998 AS A JOINT VENTURE BETWEEN THE ABU DHABI NATIONAL OIL COMPANY (ADNOC), A MAJOR GULF OIL COMPANY, AND BOREALIS, A LEADING EUROPEAN PLASTICS PROVIDER, BOROUGE IS A GROUNDBREAKING INTERNATIONAL PARTNERSHIP DELIVERING INNOVATIVE PLASTICS SOLUTIONS TO CUSTOMERS THROUGHOUT THE MIDDLE EAST, ASIA-PACIFIC AND AFRICA.}

^{BOROUGE'S STATE-OF-THE-ART PETROCHEMICAL COMPLEX IS LOCATED AT RUWAIS, ABU DHABI IN THE UNITED ARAB EMIRATES.TOGETHER, BOROUGE AND BOREALIS EMPLOY UNIQUE BORSTAR® TECHNOLOGY TO PRODUCE DIFFERENTIATED PRODUCTS FOR HIGH-VALUE INFRASTRUCTURE APPLICATIONS, INCLUDING WATER, GAS AND INDUSTRIAL PIPE SYSTEMS, POWER AND COMMUNICATION CABLES, ADVANCED PACKAGING AND AUTOMOTIVE COMPONENTS.}

^PRODUCTS:

^{* FILM}

^{* MOULDING}

^{* PIPE}

^{* WIRE/CABLE}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 24/12/2007.}

^{NUMBER OF EMPLOYEES (31 MARCH):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: NOT AVAILABLE)}

^{REGISTERED ADDRESS:}

^{39 ROBINSON ROAD}

^#07-01

^{SINGAPORE 068911}

^{DATE OF CHANGE OF ADDRESS: 15/05/1998}

^{BUSINESS ADDRESS:}

^{1 GEORGE STREET}

^#18-01

^{SINGAPORE 049145}

^{- SALES OFFICE}

^{WEBSITE: http://www.borouge.com (HOLDING COMPANY)}

^{EMAIL: info@borouge.com}

MANAGEMENT

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

^{1) JOHN JEFFERY TAYLOR, A BRITISH}

^{- BASED IN AUSTRIA}

^{2) HENRY SPERLE, A NORWEGIAN}

^{- BASED IN DENMARK}

^{3) MATAR HAMDAN SULTAN HAMAD AL AMERI, AN ARAB}

^{- BASED IN ABU DHABI}

^{4) HESHAM ABDULLA ABBAS AHMAD, AN ARAB}

^{- BASED IN ABU DHABI}

^{5) MUBARAK SUHAIL MUBARAK GHANEM AL KETBI, AN ARAB}

^{- BASED IN ABU DHABI}

^{6) SUSAN MARY DE SILVA, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE.}

^{YORK LININGS INTERNATIONAL [SINGAPORE] PTE LIMITED}

^{PACIFIC COAST INSTRUMENT PTE LTD}

^{DAIMLERCHRYSLER SINGAPORE PTE LTD}

^{ATMD FREEHILLS SERVICES 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