MIRA INFORM REPORT

Report Date :

03.07.2007

IDENTIFICATION DETAILS

Name :	BILCARE SINGAPORE PTE. LIMITED
Registered Office :	^52 Changi South Street^1, King Wai Industrial Building, Singapore – 486161
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^12/11/2002
Com. Reg. No.:	^200209840Z
Legal Form :	^Pte Ltd
Line of Business :	Manufacturing and Research & Development of Pharmaceutical & Bio-Pharmaceutical Packaging

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

BILCARE SINGAPORE PTE. LIMITED

Line Of Business

MANUFACTURING AND RESEARCH & DEVELOPMENT OF PHARMACEUTICAL & BIO-PHARMACEUTICAL PACKAGING

Parent Company

BILCARE LIMITED

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY2005

CONSOLIDATED

Sales : S$ 9,800,972

Networth : S$19,551,969

Paid-Up Capital : S$10,400,000

Net result : -S$ 337,580

Net Margin(%) : -3.44

Return on Equity(%) : -1.73

Leverage Ratio : 0.37 TIMES

COMPANY IDENTIFICATION

^{Subject Company : BILCARE SINGAPORE PTE. LIMITED}

^{Former Name : BILCARD SINGAPORE PTE. LIMITED}

^{Business Address : 52 CHANGI SOUTH STREET 1}

^{KING WAI INDUSTRIAL BUILDING}

^{Town : SINGAPORE}

^{Postcode : 486161}

^{County : -}

^{Country : Singapore}

^{Telephone : 6545 1812}

^{Fax : Not Listed}

^{ROC Number : 200209840Z}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{BILCARD SINGAPORE PTE. LIMITED (DATE OF CHANGE OF NAME : 22/08/2003)}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 12/11/2002}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : 9,800,972}

^{Net Worth : 19,551,969}

^{Paid-Up Capital : 10,400,000}

^{Employees : -}

^{Net Result : -337,580}

^{Auditor : B L ONG & CO}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 12/11/2002}

PRINCIPAL(S)

^{VENKIT RAMNARAYAN S2631891B Director}

DIRECTOR(S)

^{ONG LIAN KIN ESTHER S1126307J Company Secretary}

^{Appointed on : 23/07/2003}

^{Street : 5 JALAN ISHAK}

^{Town : SINGAPORE}

^{Postcode : 419321}

^{Country : Singapore}

^{BHANDARI MOHAN HARAKCHAND Z1563916 Director}

^{Appointed on : 23/07/2003}

^{Street : SIDDHARTH C-11 ABHIMANSHRI CO-OP}

^{HSG SOC PASHAN ROAD}

^{P.O. PUNE UNIVERSITY, PUNE}

^{Town : -}

^{Postcode : 411008}

^{Country : India}

^{VENKIT RAMNARAYAN S2631891B Director}

^{Appointed on : 23/07/2003}

^{Street : 26 BAYSHORE ROAD}

^#03-05

^{THE BAYSHORE}

^{Town : SINGAPORE}

^{Postcode : 469972}

^{Country : Singapore}

^{BHANDARI MOHAN HARAKCHAND Z1563916 Managing Director}

^{Appointed on : 27/02/2007}

^{Street : SIDDHARTH C-11 ABHIMANSHRI CO-OP}

^{HSG SOC PASHAN ROAD}

^{P.O. PUNE UNIVERSITY, PUNE}

^{Town : -}

^{Postcode : 411008}

^{Country : India}

^{PRABUDDHA GANGULI F1460893 Director}

^{Appointed on : 01/09/2006}

^{Street : 201 SUN VIEW HEIGHTS}

^{PLOT NO 262, SHER-E-PUNJAB}

^{ANDHERI EAST}

^{Town : MUMBAI}

^{Postcode : 400093}

^{Country : India}

FORMER DIRECTOR(S)

^{CYRUS ADI BAGWADIA S2671400A}

ACTIVITY (IES)

^{PHARMACEUTICAL PRODUCTS - WHSLE And MFRS Code: 16400}

^{CHEMICALS Code: 3970}

^{BASED ON ACRA'S RECORD AS AT 13/06/2007}

^{1) MANUFACTURE OF PHARMACEUTICAL & BIO-PHARMACEUTICAL INTERMEDIATES & FINE CHEMICALS FOR VETERINARY USE}

CHARGES

^{Date : 07/08/2006}

^{Comments : CHARGE NO: C200605184}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: INDIAN BANK}

^{Date : 12/04/2007}

^{Comments : CHARGE NO: C200702769}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: INDIAN BANK}

^{Date : 15/09/2004}

^{Comments : CHARGE NO: C200404587,C200404586}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: UNITED OVERSEAS BANK LTD}

^{Date : 28/11/2003}

^{Comments : CHARGE NO: C200305725}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: UCO BANK}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{UNITED OVERSEAS BANK LIMITED}

^{UCO BANK}

^{INDIAN BANK}

SHAREHOLDERS(S)

^{BILCARE LIMITED 25,400,000 Company}

^{Street : GAT NO. 1028, VILLAGE SHIROLI}

^{TAL: RAJGURUNAGAR, PUNE}

^{Town : -}

^{Postcode : 410505}

^{Country : India}

HOLDING COMPANY

^{BILCARE LIMITED UF35454C % : 100}

SUBSIDIARY (IES)

^{PT. SUNSTAR ENGINEERING (INDONESIA) Indonesia}

^{SUNSTAR CHEMICAL (THAILAND) CO., LTD Thailand}

^{SUNSTAR ENGINEERING (THAILAND) CO., LTD. Thailand}

^{SUNSTAR ENGINEERING INC. Japan}

^{BRAKING SUNSTAR S.P.A. Italy}

^{SUNSTAR LOGISTICS MAURITIUS LTD Mauritius}

^{BRAKING USA LLC United States of America}

^{SUNNEX, INC. United States of America}

PAYMENT HISTORY AND EXPERIENCES

Trade Morality : AVERAGE

Liquidity : SUFFICIENT

Payments : REGULAR

Trend : UNKNOWN

Financial Situation : AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Audit Qualification: "MILD" UNCERTAINTIES "MILD" UNCERTAINTIES}

^{Date Account Lodged: 05/09/2006}

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

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS ---}

^{Preliminary Exp 822,080 -}

^{Tangible Fixed Assets: 14,237,932 -}

^{Total Fixed Assets: 15,060,012 -}

^{Inventories: 427,704 -}

^{Receivables: 1,941,641 -}

^{Cash, Banks, Securities: 1,168,725 -}

^{Other current assets: 8,100,183 -}

^{Total Current Assets: 11,638,253 -}

^{TOTAL ASSETS: 26,698,265 -}

^{--- LIABILITIES ---}

^{Equity capital: 10,400,000 -}

^{Reserves: -30,654 -}

^{Profit & loss Account: -212,305 -}

^{Other: 9,394,928 -}

^{Total Equity: 19,551,969 -}

^{Long Term Loans: 3,981,794 -}

^{Total L/T Liabilities: 3,981,794 -}

^{Trade Creditors: 1,761,280 -}

^{Due to Bank: 532,040 -}

^{Other Short term Liab.: 265,348 -}

^{Prepay. & Def. charges: 605,834 -}

^{Total short term Liab.: 3,164,502 -}

^{TOTAL LIABILITIES: 7,146,296 -}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 9,800,972 -}

^{Purchases,Sces & Other Goods: 8,745,700 -}

^{Gross Profit: 1,055,272 -}

^{NET RESULT BEFORE TAX: -421,368 130,669}

^{Tax : -83,788 -}

^{Net income/loss year: -337,580 130,669}

^{Interest Paid: 54,746 13,243}

^{Depreciation: 383,547 708}

^{Wages and Salaries: 694,638 -}

^{Financial Income: 2,292 15}

RATIOS

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

^{Net result / Turnover(%): -0.03 -}

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

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

^{Net Margin(%): -3.44 -}

^{Return on Equity(%): -1.73 -}

^{Return on Assets(%): -1.26 -}

^{Net Working capital: 8473751.00 -}

^{Cash Ratio: 0.37 -}

^{Quick Ratio: 0.98 -}

^{Current ratio: 3.68 -}

^{Receivables Turnover: 71.32 -}

^{Leverage Ratio: 0.37 -}

^{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

^{AUDITORS' REPORT:}

^{THE AUDITORS' REPORTS ON THE FINANCIAL STATEMENTS OF THE SUBSIDIARY COMPANY IS SUBJECTED TO QUALIFICATIONS. THE SUBSIDIARY AUDITORS HIGHLIGHTED THAT THEY DID NOT OBSERVE THE TAKING OF THE PHYSICAL INVENTORIES AT 31 DECEMBER 2005 FOR INVENTORIES AMOUNTING TO S$249,688. THEY WERE ALSO UNABLE TO PERFORM ON TEST ON SALES OF S$4,650,489 AND RELATED PURCHASES OF S$4,629,351.}

^{* THE FIGURES ARE NOT COMPARATIVE AS SUBJECT DID NOT TRADE IN FY2004.}

^{THE FINANCIAL CONDITION OF THE GROUP WAS DEEMED TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH TOTAL EQUITY TOTALLING S$19,551,969. HOWEVER, RETAINED LOSSES AMOUNTED TO S$212,305. OTHERS OF S$9,394,928 REPRESENTED ADVANCE TOWARDS SHARE CAPITAL (CONTRIBUTION RECEIVED TOWARDS ENHANCED SHARE CAPITAL IN THE ADVANCE ACCOUNT IS PENDING SHARE ALLOTMENTS).}

^LEVERAGE:

^{THE LEVERAGE RATIO WAS CONSERVATIVE AT 0.37 TIMES, INDICATING THAT THE GROUP'S TOTAL LIABILITIES WERE NON-SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS AMOUNTED TO S$1,761,280.}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE GROUP WAS FAIRLY HEALTHY. NET WORKING CAPITAL REGISTERED AT S$8,473,751. THE CURRENT RATIO WAS ADEQUATE AT 3.68 TIMES WHILE THE QUICK RATIO WAS LACKING AT 0.98 TIMES.}

^{PROFITABILITY:}

^{REVENUE FOR FY2005 AMOUNTED TO S$9,800,972 BUT THE GROUP INCURRED AN OVERALL NET LOSS OF S$337,580.}

^{THUS, NET MARGIN WAS LACKING AT -3.44%.}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE SUFFICIENT NET WORKING CAPITAL, IF REVENUES AND NET INCOMES CONTINUED TO BE GENERATED AND IF TRADE RECEIVABLES WERE FORTHCOMING.}

^{AVERAGE COLLECTION PERIOD WAS COMPUTED AT 71 DAYS.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITIES}

^{CONTINGENT LIABILITIES NOT PROVIDED FOR IN THE FINANCIAL STATEMENTS * GUARANTEES, SECURED OF S$58,800 (2004: NIL)}

BACKGROUND/OPERATION

^{THE SUBJECT WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 12/11/2002 AS A PRIVATE LIMITED COMPANY AND WAS FORMERLY KNOWN AS "BILCARE SINGAOPRE PTE. LIMITED.".}

^{SUBSEQUENTLY, ON 22/08/2003, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE AS "BILCARE SINGAPORE PTE. LIMITED" AND IS TRADING AS A PRIVATE COMPANY LIMITED BY SHARES.}

^{AS AT 13/06/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 25,400,000 SHARES OF A VALUE OF S$25,400,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) MANUFACTURE OF PHARMACEUTICAL & BIO-PHARMACEUTICAL INTERMEDIATES & FINE CHEMICALS FOR VETERINARY USE}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE THOSE OF MANUFACTURING AND RESEARCH & DEVELOPMENT OF PHARMACEUTICAL & BIO-PHARMACEUTICAL PACKAGING.}

^{THE PRINCIPAL ACTIVITIES OF THE SUBSIDIARY COMPANY ARE TO PROVIDE SERVICES TO THE PHARMACEUTICAL INDUSTRY INCLUDING MANUFACTURING, PACKAGING, PACKAGING RESEARCH AND TESTING DATA MANAGEMENT SERVICES.}

^{SUBJECT IS A WHOLLY-OWNED SUBSIDIARY OF BILCARE LIMITED, A COMPANY INCORPORATED IN INDIA, WHICH IS ALSO ITS ULTIMATE HOLDING COMPANY.}

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

^{SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: PHARMACEUTICAL PRODUCTS - WHOLESALERS AND MANUFACTURERS.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:}

^{* ANALYTICAL, PHARMA PACKAGING RESEARCH AND DESIGN, MANUFACTURER OF SPECIALITY COATED BARRIER PHARMA FILMS AND PROVIDING PHARMACEUTICAL SOLUTIONS AND SERVICES USED IN PHARMACEUTICAL AND FOOD INDUSTRIES}

^{PRODUCTS OR SERVICES:}

^{* PHARMACEUTICAL PACKAGING}

^{* PACKAGING SOLUTIONS TO THE PHARMACEUTICAL SECTOR}

^{WE HAVE CONTACTED SUBJECT AND TELE-INTERVIEW REQUEST HAS BEEN STRICTLY DECLINED ON 14/06/2007.}

^{OLD REGISTERED ADDRESS:}

^{45 CANTONMENT ROAD}

^{SINGAPORE 089748}

^{DATE OF CHANGE OF ADDRESS: 23/07/2003}

^{REGISTERED & BUSINESS ADDRESSES:}

^{52 CHANGI SOUTH STREET 1}

^#03-00

^{SINGAPORE 486161}

^{DATE OF CHANGE OF ADDRESS: 15/04/2006}

^{-- OFFICE}

^WEBSITE:

^{* http://www.bilcare.com}

^EMAIL:

^{* direct-sg@bilcare.com}

MANAGEMENT

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

^{1) PRABUDDHA GANGULI, AN INDIAN}

^{- BASED IN INDIA}

^{2) VENKIT RAMNARAYAN, AN INDIAN}

^{- BASED IN INDIA}

^{3) BHANDARI MOHAN HARAKCHAND, AN INDIAN}

^{- BASED IN INDIA}

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/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions