MIRA INFORM REPORT

Report Date :

10.07.2007

IDENTIFICATION DETAILS

Name :	OLAM INTERNATIONAL LIMITED
Registered Office :	^9 Temasek Boulevard, #11-02^, Suntec Tower 2, Singapore -038989
Country :	Singapore
Financials (as on) :	30.06.2006
Date of Incorporation :	^04/07/1995
Com. Reg. No.:	^199504676H
Legal Form :	^Pub Ltd Co
Line of Business :	Sourcing, Processing and Trading of Agri Commodities

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

OLAM INTERNATIONAL LIMITED

Line Of Business

SOURCING, PROCESSING AND TRADING OF AGRI COMMODITIES

Parent Company

--

Financial Elements

FY 2006

CONSOLIDATED

Sales : S$4,361,102,000

Networth : S$488,039,000

Paid-Up Capital : S$396,954,000

Net result : S$87,207,000

Net Margin(%) : 2.00

Return on Equity(%) : 17.87

Leverage Ratio : 3.83

COMPANY IDENTIFICATION

^{Subject Company: OLAM INTERNATIONAL LIMITED}

^{Former Name: -}

^{Business Address: 9 TEMASEK BOULEVARD}

^#11-02

^{SUNTEC TOWER 2}

^{Town: SINGAPORE}

^{Postcode: 038989}

^{County: -}

^{Country: Singapore}

^{Telephone: 6339 4100}

^{Fax: 6339 9755}

^{ROC Number: 199504676H}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pub Ltd Co}

^{Date Inc.: 04/07/1995}

^{Previous Legal Form: -}

^{Summary year: 30/06/2006}

^{Sales: 4,361,102,000}

^{Net worth: 488,039,000}

^{Capital: -}

^{Paid-Up Capital: 396,954,000}

^{Employees: Not available}

^{Net result: 87,207,000}

^{Share value: -}

^{Auditor: ERNST & YOUNG}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 04/07/1995}

PRINCIPAL(S)

^{SUNNY GEORGE VERGHESE F2486047R Managing Director}

DIRECTOR(S)

^{RANGAREDDY JAYACHANDRAN S2220352E Director}

^{Appointed on: 04/07/1995}

^{Street: 32 NASSIM HILL}

^#02-34

^{NASSIM MANSION}

^{Town: SINGAPORE}

^{Postcode: 258472}

^{Country: Singapore}

^{NARAIN GIRDHAR CHANRAI S2584555B Director}

^{Appointed on: 04/07/1995}

^{Street: 28 LEONIE HILL}

^#04-30

^{LEONIE TOWERS}

^{Town: SINGAPORE}

^{Postcode: 239227}

^{Country: Singapore}

^{SUNNY GEORGE VERGHESE F2486047R Managing Director}

^{Appointed on: 11/07/1996}

^{Street: 61 GRANGE ROAD}

^#14-04

^{BERVERLY HILL APARTMENTS}

^{Town: SINGAPORE}

^{Postcode: 249570}

^{Country: Singapore}

^{SRIDHAR KRISHNAN S2672503H Director}

^{Appointed on: 01/04/1998}

^{Street: 22 WILBY ROAD}

^#09-17

^{THE TESSARINA}

^{Town: SINGAPORE}

^{Postcode: 276306}

^{Country: Singapore}

^{SHEKHAR ANANTHARAMAN S2675139Z Director}

^{Appointed on: 01/04/1998}

^{Street: 3 TANJONG RHU ROAD}

^#04-01

^{THE WATERSIDE}

^{Town: SINGAPORE}

^{Postcode: 436881}

^{Country: Singapore}

^{TSE PO SHING 899005945 Director}

^{Appointed on: 12/09/2002}

^{Street: 11/F, BLOCK 42, BAGUIO VILLAS}

^{550 VICTORIA ROAD}

^POKFULAM

^{Town: HONG KONG}

^{Postcode: -}

^{Country: Hong Kong}

^{PETER FRANCES AMOUR E1016034 Director}

^{Appointed on: 02/09/2004}

^{Street: 22A BELGRAVIA,}

^{57 SOUTH BAY ROAD}

^{Town: HONG KONG}

^{Postcode: -}

^{Country: Hong Kong}

^{SUNNY GEORGE VERGHESE F2486047R Director}

^{Appointed on: 11/07/1996}

^{Street: 61 GRANGE ROAD}

^#14-04

^{BERVERLY HILL APARTMENTS}

^{Town: SINGAPORE}

^{Postcode: 249570}

^{Country: Singapore}

^{MARK HAYNES DANIELL S2728135D Director}

^{Appointed on: 31/10/2002}

^{Street: 10 CUSCADEN WALK}

^#26-02

^{Town: SINGAPORE}

^{Postcode: 249693}

^{Country: Singapore}

^{WONG HENG TEW S0207348Z Director}

^{Appointed on: 10/10/2003}

^{Street: 79 HIGHGATE CRESCENT}

^{Town: SINGAPORE}

^{Postcode: 598857}

^{Country: Singapore}

^{LIM SHEAU MING S2562041J Alternate Director}

^{Appointed on: 10/11/2004}

^{Street: 300 TANJONG KATONG ROAD}

^#01-07

^{CHELSEA LODGE}

^{Town: SINGAPORE}

^{Postcode: 437083}

^{Country: Singapore}

^{LIM CHOO SAN MICHAEL S2539208F Director}

^{Appointed on: 24/09/2004}

^{Street: 11 CALDECOTT CLOSE}

^{CALDECOTT HILL ESTATE}

^{Town: SINGAPORE}

^{Postcode: 299120}

^{Country: Singapore}

^{ROBERT MICHAEL TOMLIN S2624570B Director}

^{Appointed on: 24/09/2004}

^{Street: 22 SAUNDERS ROAD}

^{Town: SINGAPORE}

^{Postcode: 228266}

^{Country: Singapore}

^{TAN SAN-JU S1495769C Company Secretary}

^{Appointed on: 12/08/2005}

^{Street: 37 MCNAIR ROAD}

^TOWNERVILLE

^{Town: SINGAPORE}

^{Postcode: 328532}

^{Country: Singapore}

^{SOPHIA LIM SIEW FAY S2664520D Company Secretary}

^{Appointed on: 12/08/2005}

^{Street: 806 BEDOK RESERVOIR ROAD}

^#14-04

^BAYWATER

^{Town: SINGAPORE}

^{Postcode: 479243}

^{Country: Singapore}

^{FRANK PHILIP HARLEY 761054576 Alternate Director}

^{Appointed on: 10/05/2006}

^{Street: 36B, BELLA VISTA}

^{3 YING FAI TERRACE}

^CENTRAL

^{Town: HONG KONG}

^{Postcode: -}

^{Country: Hong Kong}

FORMER DIRECTOR(S)

^{HELEN CAMPOS THOMAS S1318008C}

^{MURLI KEWALRAM CHANRAI S2609815G}

^{LOCK YOKE KUAN S1526778Z}

^{BRUCE CARROLL ALLEN 700715610}

^{HUI SHEUNG YIN DANIEL 790006238}

^{KRISHNASAMY RAVENDRAN S0028856Z}

^{HSIA PIH YOONG MAGDALENE S6817229B}

^{CHUA SUI CHOO ANNE S1239655D}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{COMMISSION MERCHANTS Code:4990}

^{COMMODITY TRADERS Code:5010}

^{AGRICULTURAL MARKETING Code:370}

^{BASED ON ACRA'S RECORD AS AT 05/07/2007}

^{1) GENERAL WHOLESALE TRADE(INCLUDING GENERAL IMPORTERS AND EXPORTERS)}

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

CHARGES

^{Date: 15/05/1998}

^{Comments: CHARGE NO: C200401419 (DISCHARGED - 05/05/2004)}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): PT BANK CENTRAL ASIA TBK}

^{Date: 15/05/1998}

^{Comments: CHARGE NO: C200406297 (DISCHARGED - 07/01/2005)}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): STANDARD CHARTERED BANK}

^{Date: 15/05/1998}

^{Comments: CHARGE NO: 199802444/199802443 (DISCHARGED - 28/09/1998)}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): BHF-BANK AKTIENGSELLSCHAFT}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{STANDARD CHARTERED BANK}

^{DBS BANK LTD.}

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED}

^{BNP PARIBAS (SUISSE) SA}

^{ABN AMRO BANK N.V.}

^{CITIBANK N.A.}

^{DEUTSCHE BANK AKTIENGESELLSCHAFT}

^{NATEXIS BANQUES POPULAIRES}

^{OVERSEA-CHINESE BANKING CORPORATION LIMITED}

^{RABOBANK INTERNATIONAL}

SHAREHOLDERS(S)

^{KEWRALAM SINGAPORE LIMITED 418,134,877 Company}

^{Street: 65 CHULIA STREET}

^#49-01

^{OCBC CENTRE}

^{Town: SINGAPORE}

^{Postcode: 049513}

^{Country: Singapore}

^{SRIDHAR KRISHNAN 10,330,023 Private Person}

^{Street: 22 WILBY ROAD}

^#09-17

^{THE TESSARINA}

^{Town: SINGAPORE}

^{Postcode: 276306}

^{Country: Singapore}

^{SUNNY GEORGE VERGHESE 79,022,630 Private Person}

^{Street: 61 GRANGE ROAD}

^#14-04

^{BERVERLY HILL APARTMENTS}

^{Town: SINGAPORE}

^{Postcode: 249570}

^{Country: Singapore}

^{DEXIA TRUST SERVICES SINGAPORE 11,905,633 Company}

^{Street: 9 RAFFLES PLACE}

^42-01

^{Town: SINGAPORE}

^{Postcode: 048619}

^{Country: Singapore}

^{RAFFLES NOMINEES PTE LTD 73,441,679 Company}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{MERRILL LYNCH (S'PORE) PTE LTD 120,318,302 Company}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{DBS NOMINEES PTE LTD 290,934,385 Company}

^{Street: -}

^{Town: SINGAPORE}

^{Postcode: -}

^{Country: Singapore}

^{HSBC (SINGAPORE) NOMINEES PTE LTD 51,976,026 Company}

^{Street: -}

^{Town: SINGAPORE}

^{Postcode: -}

^{Country: Singapore}

^{CITIBANK NOMINEES SINGAPORE PTE LTD 137,964,898 Company}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{MORGAN STANLEY ASIA (SINGAPORE) PTE 9,387,243 Company}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{UNITED OVERSEAS BANK NOMINEES [PTE] 14,236,423 Company}

^{Street: 1 BONHAM STREET}

^#15-00

^{U O B BUILDING}

^{Town: SINGAPORE}

^{Postcode: 049782}

^{Country: Singapore}

^{UOB KAY HIAN PRIVATE LIMITED 68,959,483 Company}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{SRIDHAR KRISHNAN, SHEKHAR 12,942,444 Private Person}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{DBSN SERVICES PTE LTD 161,295,988 Company}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{SHEKHAR ANANTHARAMAN 10,487,953 Private Person}

^{Street: 3 TANJONG RHU ROAD}

^#04-01

^{THE WATERSIDE}

^{Town: SINGAPORE}

^{Postcode: 436881}

^{Country: Singapore}

^{ASHOK KRISHEN 7,578,288 Private Person}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{VIVEK VERMA 6,800,959 Private Person}

^{Street: 20 BERRIMA ROAD}

^{Town: SINGAPORE}

^{Postcode: 299896}

^{Country: Singapore}

^{JAGDISH ACHLESHWAR PRASAD PARIHAR 6,626,044 Private Person}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{KRISHNAN RAVIKUMAR 6,170,937 Private Person}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{ASHOK HEGDE 3,444,989 Private Person}

^{Street: -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{RUSSELL AIF SINGAPORE INVESTMENTS 194,255,835}

^{INTERNATIONAL FINANCE CORPORATION 104,323,378}

^{DRAGON ORIENT HOLDINGS LIMITED 57,806,616}

^{SELETAR INVESTMENTS PTE LTD 75,542,216}

^{THE ASIA LIFE ASSURANCE SOCIETY LTD 5,167,000}

^{YEAP LAM HONG 2,706,000}

^{LIM BEE KOK 1,340,000}

^{KIM ENG SECURITIES (PTE) LTD 875,000}

^{OCBC SECURITIES PRIVATE LTD 847,000}

^{MACQUARIE SECURITIES (S) PRIVATE 843,000}

SUBSIDIARY(IES)

^{OLAM CAM SARL}

^{OLAM GHANA LIMITED}

^{OLAM NIGERIA PLC}

^{OLAM TANZANIA LTD}

^{PT OLAM INDONESIA}

^{OLAM MOZAMBIQUE LIMITADA}

^{OLAM MADAGASCAR SARL}

^{OLAM POLSKA SP ZOO}

^{OLAM VIETNAM LIMITED}

^{OLAM SOUTH AFRICA (PROPRIETARY) LTD}

^{OUTSPAN PNG LTD}

^{OLAM EUROPE B.V.}

^{OLAM BURKINA SARL}

^{OLAM BISSAU LIMITADA}

^{OLAM GAB SARL}

^{OUTSPAN GHANA LIMITED}

^{CARAWAY PTE. LTD.}

^{OLAM INVESTMENTS LIMITED}

^{OLAM IVORIE SARL}

^{OUTSPAN NIGERIA LTD}

^{OUTSPAN IVORIE SARL}

^{OLAM FRANCE SARL}

^{OLAM BRAZIL LTDA}

^{OLAM MIDDLE EAST L.L.C.}

^{OLAM AMERICAS INC}

^{OLAM CONGO (RDC) SPRL}

^{OLAM EUROPE LTD}

^{OLAM UGANDA LIMITED}

^{OLAM INSURANCE LIMITED}

^{OLAM GUINEE SARL}

^{OUTSPAN BRAZIL}

^{OLAM DAIRY}

^{OLAM ONLINE LTD}

^{OLAM BENIN SARL}

^{OLAM TOGO SARL}

^{OLAM KAZAKHSTAN}

^{OLAM KENYA LIMITED}

^{TEXTUREGATE INVESTMENTS PTE LTD}

^{OLAM UKRAINE LLC}

^{PANASIA INTERNATIONAL FZCO}

^{OLAM SHANGHAI LTD}

^{OLAM SHANGDONG LTD}

^{LLC OUTSPAN INTERNATIONAL}

^{EURL AGRI COMMODITIES}

^{OUTSPAN PERU SAC}

^{LLC CARAWAY FOODS}

^{OLAM ARGENTINA S.A.}

^{PT AGRONESIA BUMI PERSADA}

^{CARAWAY FOODS INTERNATIONAL (NIGERIA) LTD}

^{CARAWAY FOODS INTERNATIONAL SOUTH AFRICA}

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) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 23/11/2006}

^{Balance Sheet Date: 30/06/2006 30/06/2005 30/06/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED COMPANY}

^{--- ASSETS}

^{Preliminary Exp 5,061,000 860,000 1,196,000}

^{Tangible Fixed Assets: 72,518,000 39,166,000 672,000}

^{Investments 1,611,000 1,484,000 40,614,000}

^{Total Fixed Assets: 79,190,000 41,510,000 42,482,000}

^{Inventories: 1,013,904,000 1,019,025,000 141,093,000}

^{Receivables: 426,778,000 649,179,000 468,951,000}

^{Short Term Fin. Assets: 199,614,000 - -}

^{Cash,Banks,Securities: 296,241,000 165,367,000 51,345,000}

^{Other current assets: 342,438,000 267,359,000 411,359,000}

^{Total Current Assets: 2,278,975,000 2,100,930,000 1,072,748,000}

^{TOTAL ASSETS: 2,358,165,000 2,142,440,000 1,115,230,000}

^{--- LIABILITIES}

^{Equity capital: 396,954,000 155,459,000 100,791,000}

^{Reserves: - - 3,079,000}

^{Profit & loss Account: 91,032,000 342,792,000 40,320,000}

^{Other: 53,000 - -}

^{Surplus equity: - - 36,035,000}

^{Total Equity: 488,039,000 498,251,000 180,225,000}

^{Long Term Loans: 341,011,000 - -}

^{Other long term Liab.: - - 34,202,000}

^{Total L/T Liabilities: 341,011,000 - 34,202,000}

^{Trade Creditors: 86,672,000 129,079,000 81,906,000}

^{Prepay. & Def. charges: 46,295,000 43,823,000 13,614,000}

^{Advanced payments: 1,108,000 1,190,000 17,198,000}

^{Due to Bank: 1,135,820,000 1,450,747,000 777,676,000}

^{Provisions: 13,251,000 8,627,000 3,616,000}

^{Other Short term Liab.: 245,969,000 10,723,000 6,793,000}

^{Total short term Liab.: 1,529,115,000 1,644,189,000 900,803,000}

^{TOTAL LIABILITIES: 1,870,126,000 1,644,189,000 935,005,000}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 4,361,102,000 3,369,237,000 2,260,715,000}

^{Purchases,Sces & Other Goods: 3,372,172,000 2,635,527,000 -}

^{Gross Profit: - - 281,309,000}

^{Result of ordinary operations - - 68,835,000}

^{NET RESULT BEFORE TAX: 96,738,000 73,788,000 43,343,000}

^{Tax: 9,531,000 7,878,000 2,889,000}

^{Net income/loss year: 87,207,000 65,910,000 40,454,000}

^{Interest Paid: 94,704,000 51,485,000 25,492,000}

^{Depreciation: 12,144,000 7,551,000 324,000}

^{Dividends: 33,579,000 24,272,000 18,000,000}

^{Directors Emoluments: 9,663,000 7,700,000 1,629,000}

^{Wages and Salaries: 66,455,000 51,521,000 23,316,000}

^{Financial Income: 6,340,000 1,005,000 130,000}

RATIOS

^{30/06/2006 30/06/2005 30/06/2004}

^{Net result / Turnover(%): 0.02 0.02 0.02}

^{Fin. Charges / Turnover(%): 0.02 0.02 0.01}

^{Stock / Turnover(%): 0.23 0.30 0.06}

^{Net Margin(%): 2.00 1.96 1.79}

^{Return on Equity(%): 17.87 13.23 22.45}

^{Return on Assets(%): 3.70 3.08 3.63}

^{Dividends Coverage: 2.60 2.72 2.25}

^{Net Working capital: 749860000.00 456741000.00 171945000.00}

^{Cash Ratio: 0.19 0.10 0.06}

^{Quick Ratio: 0.47 0.50 0.58}

^{Current ratio: 1.49 1.28 1.19}

^{Receivables Turnover: 35.23 69.36 74.68}

^{Leverage Ratio: 3.83 3.30 5.19}

^{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 SOUND EVEN THOUGH NET WORTH DECREASED BY 2.05% FROM S$498,251,000 IN 2005 TO S$488,039,000 IN 2006.}

^{THIS WAS DUE TO LOWER RESERVES OF S$91,032,000 (2005: S$342,792,000); A FALL OF 73.44% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY AMOUNTS DUE TO BANKS WHICH MADE UP 74.28% (2005: 88.23%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$1,135,820,000 (2005: S$1,450,747,000). THE BREAKDOWN IS AS FOLLOWS:}

^{-AMOUNTS DUE TO BANKERS - 2006: S$783,312,000 (2005: S$1,187,967,000)}

^{-MEDIUM TERM NOTES - 2006: S$352,508,000 (2005: S$262,780,000)}

^{TRADE CREDITORS FELL BY 32.85% TO S$86,672,000 (2005: S$129,079,000).}

^{SUBJECT'S LONG TERM LIABILITIES, WHICH AMOUNTED TO S$341,011,000 IN 2006}

^{(2005: - ), CONSIST OF THE FOLLOWING:}

^{-TERM LOANS FROM BANKS - 2006: S$213,330,000 (2005: - )}

^{-MEDIUM TERM NOTES - 2006: S$127,681,000 (2005: - )}

^{IN ALL, LEVERAGE RATIO ROSE FROM 3.30 TIMES TO 3.83 TIMES 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 RISE IN NET WORKING CAPITAL BY 64.18% TO S$749,860,000 (2005: S$456,741,000).}

^{CURRENT RATIO ROSE TO 1.49 TIMES, UP FROM 1.28 TIMES BUT QUICK RATIO DECREASED TO 0.47 TIMES FROM 0.50 TIMES IN 2005.}

^{SIMILARLY, CASH AND CASH EQUIVALENTS ROSE SHARPLY BY 79.14% TO S$296,241,000}

^{(2005: S$165,367,000).}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 29.44% FROM S$3,369,237,000 IN 2005 TO S$4,361,102,000 AND NET PROFIT ROSE BY 32.31% TO S$87,207,000 (2005: S$65,910,000).}

^{THIS COULD BE DUE TO THE INCREASE IN OTHER REVENUE BY 1.92 TIMES TO S$16,675,000 (2005: S$5,718,000).}

^{HENCE, NET MARGIN ROSE TO 2.00% (2005: 1.96%).}

^{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 2.02 TIMES}

^{(2005: 2.43 TIMES).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-DEFERRED TAX ASSET - 2006: S$4,608,000 (2005: S$860,000)}

^{-OTHER RECIEVABLE - 2006: S$453,000 (2005: - )}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{AMOUNTS DUE TO BANKERS}

^{THE AMOUNTS DUE TO BANKERS FOR THE COMPANY ARE REPAYABLE WITHIN 12 MONTHS AND BEAR INTEREST OF BETWEEN 3.5% TO 6.5% (2005: 3.0% TO 6.0%) PER ANNUM.}

^{THE AMOUNTS DUE TO BANKERS FOR THE SUBSIDIARY COMPANIES ARE REPAYABLE WITHIN 12 MONTHS AND BEAR INTEREST OF BETWEEN 5% TO 20% (2005: 3% TO 25%) PER ANNUM.}

^{MEDIUM TERM NOTES}

^{THE COMPANY HAS A MULTICURRENCY MEDIUM TERM NOTES PROGRAMME WITH A MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $800,000,000 (2005: $800,000,000). THESE MEDIUM TERM NOTES ARE UNSECURED, BEAR INTEREST AT FLOATING RATES RANGING FROM 3.8% TO 6.97% (2005: 3.15% TO 5.04%) PER ANNUM}

^{TERM LOANS}

^{THESE TERM LOANS BEAR INTEREST AT FLOATING INTEREST RATES RANGING FROM 6.18% TO 6.82%, UNSECURED AND ARE REPAYABLE BETWEEN 3 TO 4 YEARS.}

^{SUBSEQUENT EVENTS}

^{SUBSEQUENT TO FINANCIAL YEAR END, THE DIRECTORS HAVE PROPOSED A FIRST AND FINAL ORDINARY DIVIDEND OF $0.0150 PER ORDINARY SHARE AMOUNTING TO $23,318,766 AND A SPECIAL DIVIDEND OF $0.0150 PER ORDINARY SHARE AMOUNTING TO $23,318,766, IN RESPECT OF THE FINANCIAL YEAR ENDED 30 JUNE 2006 SUBJECT TO APPROVAL OF SHAREHOLDERS AT THE ANNUAL GENERAL MEETING TO BE HELD ON 30 OCTOBER 2006. THE FIRST AND FINAL DIVIDEND AND SPECIAL DIVIDEND WILL BE PAID ON 16 NOVEMBER 2006.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 04/07/1995 AS A PUBLIC COMPANY LIMITED BY SHARES AND IS TRADING UNDER ITS PRESENT NAMESTYLE OF "OLAM INTERNATIONAL LIMITED".}

^{AS AT 05/07/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 1,555,096,400 SHARES, OF A VALUE OF S$397,732,083.06.}

^{SUBJECT WAS LISTED ON 11/02/2005 ON SGX MAINBOARD.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND EXPORTERS)}

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF SUBJECT AND THAT OF ITS SUBSIDIARY COMPANIES ARE THOSE OF SOURCING, PROCESSING AND TRADING OF AGRI COMMODITIES.}

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

^ACTIVITIES

^{- GLOBAL SOURCING, PROCESSING, MERCHANDISING AND SUPPLY CHAIN MANAGERS OF}

^{AGRICULTURAL PRODUCTS, RAW MATERIAL AND FOOD INGREDIENTS}

^PRODUCTS

*EDIBLE NUTS, SPICES AND PULSES - CASHEWS, PEANUTS AND OTHER EDIBLE NUTS, CLOVES, PEPPER, SESAME AND OTHER SPICES, AND BEANS AND LENTILS

^{*COCOA, COFFEE AND SHEANUTS - COCOA AND COCOA PRODUCTS, COFFEE AND COFFEE PRODUCTS, SHEANUTS AND SHEA- PRODUCTS}

^{*FIBRE AND WOOD PRODUCTS - COTTON AND WOOD PRODUCTS}

^{*FOOD STAPLES AND PACKAGED FOODS - RICE, SUGAR, MILK POWDER AND PACKAGED FOODS BUSINESS}

^{MARKET PRESENCE:}

^{*INDIA, VIETNAM, CAMEROON, UGANDA AND TANZANIA, INDONESIA, NORTH AMERICA, EUROPE,}

^{MIDDLE EAST AND SOUTH EAST ASIA.}

^{FUTURE MARKET:}

^{*NORTH AFRICA}

^{THE GROUP OPERATES IN 40 (2004: 38; 2003: 34) COUNTRIES.}

^{SOME OF SUBJECT'S CUSTOMERS:}

^{*NESTLE UK LTD}

^{*NESTLE FRANCE S.A}

^{*SARA LEE I DE POSTFACH}

^{*KRAFT FOODS NORTH}

^{*AMERICA, INC.}

^{*MASTERFOODS UK}

^{*CADBURY INTERNATIONAL LTD}

^{*LAVAZZA SPA}

^{*TCHIBO FRISCH-ROST-KAFFEE GMBH}

^{*ADM USA}

^{*BLOMMER CHOCOLATE}

^{*JOHN B. SANFILIPO & SON INC.}

^{*THE NUT COMPANY B.V.}

^{TERMS OF PAYMENT}

^{- CUSTOMERS: RECEIPT OF INWARD LETTERS OF CREDIT, CASH AGAINST THE PRESENTATION OF}

^{DOCUMENTS OF TITLE, CASH COLLECTION BETWEEN 30 AND 45 DAYS, CREDIT PERIODS UP TO 45}

^DAYS.

^{- SUPPLIERS: LETTERS OF CREDIT, CASH AGAINST PRESENTATION OF DOCUMENTS OF TITLE.}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITY}

^{- SINGAPORE COMMODITY EXCHANGE}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE AT THE TIME OF THIS REPORT.}

^{NUMBER OF EMPLOYEES (30 JUNE):}

^{- GROUP - 2006: NOT AVAILABLE (2005: 5,090; 2004: 3,003; 2003: 2,375; 2002: 1,680; 2001: 1,574)}

^{REGISTERED ADDRESS:}

^{3 CHURCH STREET}

^#08-01

^{SINGAPORE 049483}

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

^{BUSINESS ADDRESS:}

^{9 TEMASEK BOULEVARD}

^#11-02

^{SUNTEC TOWER 2}

^{SINGAPORE 038989}

^{- RENTED PREMISE}

^{- OWNED BY: PROGRESS NAVIGATION CO PTE LTD}

^WEBSITE:

^{www.olamonline.com}

^EMAIL:

^{info@olamnet.com}

MANAGEMENT

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

^{1) TSE PO SHING, A BRITISH}

^{- BASED IN HONG KONG.}

^{2) SUNNY GEORGE VERGHESE, A BRITISH}

^{- BASED IN SINGAPORE.}

^{3) WONG HENG TEW, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIP(S) IN:}

^{ECICS HOLDINGS LTD}

^{FULLERTON (PRIVATE) LIMITED}

^{SELETAR INVESTMENTS PTE LTD}

^{BINTAN LAGOON RESORT LTD}

^{SINGAPORE AIRCRAFT LEASING ENTERPRISE PTE LTD}

^{ASEAN BINTULU FERTILIZER SDN BHD}

^{FINLAYSON ALPHA INVESTMENTS PTE LTD}

^{FINLAYSON ALPHA}

^{FINLAYSON ONE PTE LTD}

^{FINLAYSON GLOBAL CORPORATION LIMITED}

^{4) RANGAREDDY JAYACHANDRAN, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIP(S) IN:}

^{KEWALRAM SINGAPORE LIMITED}

^{REDINGTON PTE LTD}

^{KEWALRAM REALTY LTD}

^{CADENSWORTH TRADING PTE LTD}

^{AQUARIUS INVESTMENT ADVISORS PTE LTD}

^{5) LIM CHOO SAN MICHAEL, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIP(S) IN:}

^{NATIONAL SKIN CENTRE (SINGAPORE) PTE LTD}

^{TAN TOCK SENG HOSPITAL PTE LTD}

^{NATIONAL NEUROSCIENCE INSTITUTE OF SINGAPORE PTE LTD}

^{NATIONAL HEALTHCARE GROUP PTE LTD}

^{6) NARAIN GIRDHAR CHANRAI, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS OTHER DIRECTORSHIP(S) IN:}

^{KEWALRAM SINGAPORE LIMITED}

^{REDINGTON PTE LTD}

^{KEWALRAM REALTY LTD}

^{CADENSWORTH TRADING PTE LTD}

^{7) ROBERT MICHAEL TOMLIN, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS OTHER DIRECTORSHIP(S) IN:}

^{SINGAPORE REPERTORY THEATRE LTD}

^{SCHRODER PROPERTY ASIA (S) LTD}

^{8) SRIDHAR KRISHNAN, A SINGAPOREAN}

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

^{9) SHEKHAR ANANTHARAMAN, A SINGAPORE PERMANENT RESIDENT}

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

^{10) MARK HAYNES DANIELL, A BRITISH}

^{- BASED IN SINGAPORE.}

^{11) PETER FRANCES AMOUR, AN AUSTRALIAN}

^{- BASED IN HONG KONG}

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/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