MIRA INFORM REPORT

Report Date :

18.07.2007

IDENTIFICATION DETAILS

Name :	DEEP DRILLING 5 PTE. LTD.
Registered Office :	^63 Market Street, #09-03^, Singapore – 048942
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^15/02/2005
Com. Reg. No.:	^200502024W
Legal Form :	^Pte Ltd
Line of Business :	Construct and Own Rigs and other Marine Vessels

RATING & COMMENTS

MIRA’s Rating :

Ca

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear

Subject Company

DEEP DRILLING 5 PTE. LTD.

Line Of Business 

CONSTRUCT AND OWN RIGS AND OTHER MARINE VESSELS

Parent Company

DEEP DRILLING INVEST PTE. LTD.

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2005

COMPANY

Sales : -

Networth : USD-387,820

Paid-Up Capital : USD1

Net result : USD-387,821

Net Margin(%) : -

Return on Equity(%) : -

Leverage Ratio : -70.94

COMPANY IDENTIFICATION

^{Subject Company: DEEP DRILLING 5 PTE. LTD.}

^{Former Name: -}

^{Registered Address: 63 MARKET STREET}

^#09-03

^{Town: SINGAPORE}

^{Postcode: 048942}

^{County: -}

^{Country: Singapore}

^{Telephone: Not Listed}

^{Fax: Not Listed}

^{ROC Number: 200502024W}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 15/02/2005}

^{Previous Legal Form: -}

^{Summary year: 31/12/2005}

^{Sales: -}

^{Net worth: -387,820}

^{Capital: -}

^{Paid-Up Capital: 1}

^{Employees: Not available}

^{Net result: -387,821}

^{Share value: -}

^{Auditor: PRICEWATERHOUSECOOPERS}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 15/02/2005}

PRINCIPAL(S)

^{VENKATARAMAIYER SIVARAMAKRISHNAN S0033476F Director}

DIRECTOR(S)

^{VENKATARAMAIYER SIVARAMAKRISHNAN S0033476F Director}

^{Appointed on: 18/04/2007}

^{Street: 666 YISHUN AVENUE 4}

^#05-159

^{Town: SINGAPORE}

^{Postcode: 760666}

^{Country: Singapore}

^{CHAKKUNGAL PATHAYAPURA GOPALAKRISHNF7665632 Director}

^{Appointed on: 18/04/2007}

^{Street: NO. 5, OLD NO. 27 MC. NICHOLS ROAD}

^CHETPET

^{Town: CHENNAI}

^{Postcode: 600 031}

^{Country: India}

^{REJI ABRAHAM G1798750 Director}

^{Appointed on: 18/04/2007}

^{Street: 4, 15TH AVENUE, HARRINGTON ROAD}

^CHETPET

^{Town: CHENNAI}

^{Postcode: 600 031}

^{Country: India}

^{ONG HWEE SIENG FLORENCE S1818721C Company Secretary}

^{Appointed on: 23/06/2005}

^{Street: 3 CORONATION DRIVE}

^{Town: SINGAPORE}

^{Postcode: 269558}

^{Country: Singapore}

ACTIVITY(IES)

^{SHIP SERVICE SUPPLIES Code:19320}

^{DRILLING COMPANIES Code:6975}

^{BASED ON ACRA'S RECORD AS AT 26/06/2007}

^{1) SHIP MANAGEMENT SERVICES; OWNERSHIP, CONSTRUCTION AND OPERATION OF DRILLING RIGS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

No Banker Information In Our Database

SHAREHOLDERS(S)

^{DEEP DRILLING INVEST PTE. LTD. 68,146,423 Company}

^{Street: 63 MARKET STREET}

^#09-03

^{Town: SINGAPORE}

^{Postcode: 048942}

^{Country: Singapore}

HOLDING COMPANY

^{DEEP DRILLING INVEST PTE. LTD. 200400177M %: 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: LACKING}

^{Payments: UNKNOWN}

^{Trend: UNKNOWN}

^{Financial Situation: BAD}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Audit Qualification: UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 13/11/2006}

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

^{Number of weeks: 45}

^{Consolidation Code: COMPANY}

^{--- ASSETS}

^{Preliminary Exp 27,125,826}

^{Total Fixed Assets: 27,125,826}

^{TOTAL ASSETS: 27,125,826}

^{--- LIABILITIES}

^{Equity capital: 1}

^{Profit & loss Account: -387,821}

^{Total Equity: -387,820}

^{Other Short term Liab.: 27,513,646}

^{Total short term Liab.: 27,513,646}

^{TOTAL LIABILITIES: 27,513,646}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales}

^{NET RESULT BEFORE TAX: -387,821}

^{Net income/loss year: -387,821}

RATIOS

^31/12/2005

^{Return on Equity(%): 100.00}

^{Return on Assets(%): -1.43}

^{Net Working capital: -27513646.00}

^{Leverage Ratio: -70.94}

^{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)}

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

FINANCIAL COMMENTS

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED INADEQUATE WITH NET WORTH IN NEGATIVE REGION OF USD387,820.}

^{THIS WAS DUE TO THE ACCUMULATED LOSS OF USD387,821 INCURRED IN 2005.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS WHOLLY FINANCED BY AN ADVANCE FROM THE IMMEDIATE HOLDING CORPORATION AND AMOUNTED TO USD27,513,646.}

^{SUBJECT DID NOT INCUR ANY LONG TERM LIABILITIES DURING THE FINANCIAL YEAR UNDER REVIEW.}

^{IN ALL, LEVERAGE RATIO WAS IN NEGATIVE REGION OF 70.94 TIMES. THIS WAS DUE TO SUBJECT'S NEGATIVE TOTAL EQUITY AND ITS OVERWHELMING TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS INADEQUATE AS SEEN FROM THE NEGATIVE NET WORKING CAPITAL WHICH AMOUNTED TO USD27,513,646.}

^{LIQUIDITY RATIOS COULD NOT BE COMPUTED AS SUBJECT DID NOT ACQUIRE ANY CURRENT ASSETS DUIRNG THE FINANCIAL YEAR.}

^{THESE COULD INDICATE THE SUBJECT MAY FACE DIFFICULTIES IN FULFILLING ITS FUTURE LONG TERM LIABILITIES.}

^{PROFITABILITY:}

^{SUBJECT DID NOT POST ANY REVENUE DURING THE FINANCIAL YEAR, BUT INCURRED A NET LOSS OF USD387,821 DURING THE FINANCIAL YEAR. THIS WAS DUE TO THE FOLLOWING EXPENSES INCURRED:}

^{-LEGAL, AUDIT AND ACCOUNTING FEES - 2005: USD5,482}

^{-RENTAL - 2005: USD1,400}

^{-RECHARGE OF EXPENSES FROM IMMEDIATE HOLDING COMPANY - 2005: USD305,339}

^{-OTHER OPERATING EXPENSES - 2005: USD75,600}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEM IS CLASSIFIED UNDER PRELIMINARY:}

^{-RIG UNDER CONSTRUCTION - 2005: USD27,125,826}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^COMPARATIVES

^{THERE ARE NO COMPARATIVE FIGURES AS THE COMPANY WAS INCORPORATED DURING THE FINANCIAL PERIOD AND THIS IS THE FIRST SET OF FINANCIAL STATEMENTS SINCE INCORPORATION.}

^COMMITMENTS

^{CAPITAL COMMITMENT (RIG UNDER CONSTRUCTION) - 2005: USD106,240,000}

^{EVENTS AFTER BALANCE SHEET DATE}

^{ON 7 MARCH 2006, THE COMPANY ALLOTED 25,999,999 ORDINARY SHARES FOR A CASH CONSIDERATION OF US$1 PER ORDINARY SHARE TO DEEP DRILLING INVEST PTE LTD AND SUCH ORDINARY SHARES SHALL AFTER ALLOTMENT RANK IN ALL RESPECTS PARI PASSU WITH THE EXISTING ORDINARY SHARES OF THE COMPANY.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 15/02/2005 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER THE PRESENT NAMESTYLE OF "DEEP DRILLING 5 PTE. LTD.".}

^{AS AT 26/06/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 68,146,423 SHARES, OF A VALUE OF S$68,146,423.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) SHIP MANAGEMENT SERVICES; OWNERSHIP, CONSTRUCTION AND OPERATION OF DRILLING RIGS}

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW, THE PRINCIPAL ACTIVITY OF THE COMPANY IS TO CONSTRUCT AND OWN RIGS AND OTHER MARINE VESSELS.}

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

^{SUBJECT'S TRADE INFORMATION AND CONTACT NUMBERS ARE NOT LISTED ON THE LOCAL DIRECTORIES AND INTERNET.}

^{INFORMATION ON SINVEST ASA (ULTIMATE HOLDING CORPORATION)}

^{- SINVEST ASA IS A PUBLIC LISTED COMPANY, AND HAS BEEN LISTED ON THE OSLO STOCK}

^{EXCHANGE SINCE ITS INCORPORATION EARLY IN 2001.}

^{- THE COMPANY IS LOCATED IN KRISTIANSAND.}

^{- SINVEST'S OBJECTIVE IS TO BE A LONG-TERM FINANCIAL AND STRATEGIC INVESTOR IN OIL}

^{AND OFFSHORE COMPANIES.}

^{NO OTHER INFORMATION COULD BE MADE AVAILABLE AT THE TIME OF THIS REPORT.}

^{THE COMPANY'S IMMEDIATE HOLDING COMPANY IS DEEP DRILLING INVEST PTE. LTD., INCORPORATED IN SINGAPORE AND THE ULTIMATE HOLDING CORPORATION IS SINVEST ASA, INCORPRATED IN NORWAY.}

^{NUMBER OF EMPLOYEES (31 DECEMBER)}

^{- COMPANY - 2005: NIL}

^{REGISTERED ADDRESS:}

^{63 MARKET STREET}

^#09-03

^{SINGAPORE 048942}

^{DATE OF CHANGE OF ADDRESS: 15/02/2005}

^{YOUR PROVIDED ADDRESS:}

^{28 CHAPEL ROAD}

^{SINGAPORE 429534}

^{- UNABLE TO CONFIRM}

^WEBSITE:

^{www.sinvest.no (ULTIMATE HOLDING COMPANY'S)}

^EMAIL:

^{NOT AVAILABLE}

MANAGEMENT

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

^{1) CHAKKUNGAL PATHAYAPURA GOPALAKRISHNAN, AN INDIAN}

^{- BASED IN INDIA}

^{2) REJI ABRAHAM, AN INDIAN}

^{- BASED IN INDIA}

^{3) VENKATARAMAIYER SIVARAMAKRISHNAN, A SINGAPOREAN}

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

^{MOTOR MATE PRODUCTS PL}

^{NIIT ASIA PACIFIC PTE LTD}

^{INTRALOG SINGAPORE PTE LTD}

^{SDITECHNOLOGIES PTE LTD}

^{RATREM SINGAPORE PTE LTD}

^{SEEC SINGAPORE PTE LTD}

^{SIERRA ATLANTIC PTE LTD}

^{KAMADHENU VENTURES PTE LTD}

^{DARLINGTON TRADING PTE LTD}

^{POLYMET SA (S) PTE LTD}

^{HIGHLAND MERCHANT CO PTE LTD}

^{IDEE NOUVELLE PTE. LTD.}

^{SWEETCO INTERNATIONAL PTE. LTD.}

^{KBS GLOBAL (S) PTE. LTD.}

^{VISION IMPEX PTE LTD}

^{BERRYLAND HOLDINGS PTE. LTD.}

^{EARTHSHINE IMPEX PTE. LTD.}

^{VVF SINGAPORE PTE. LTD.}

^{DEEP DRILLING 4 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.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMY GREW BY 6.6% IN 4Q 2006, AFTER A 7.0% GROWTH IN 3Q 2006. THE GROWTH MOMENTUM, ON AN ANNUALISED QUARTER-TO-QUARTER BASIS, DOUBLED TO 7.9% IN 4Q 2006, FROM 3.9% IN THE PREVIOUS QUARTER. THIS BROUGHT FULL-YEAR REAL GDP GROTH TO 7.9%, HIGHER THAN THE 6.6% GROWTH IN 2005.

THE MANUFACTURING SECTOR GREW AT A MORE MODEST PACE OF 7.7% IN 4Q 2006, AFTER A 9.5% EXPANSION IN 3Q 2006. THIS WAS DUE MAINLY TO A FALL IN THE OUTPUT OF THE ELECTRONICS AND CHEMICALS CLUSTERS, AND SLOWER GROWTH IN THE PRECISION ENGINEERING CLUSTER. GROWTH IN THE TRANSPORT ENGINEERING CLUSTER EASED BUT REMAINED STRONG. MEANWHILE, THE BIOMEDICAL MANUFACTURING CLUSTER ACCELERATED FROM A GROWTH OF 4.7% IN 3Q 2006 TO 27% IN 4Q 2006. FOR THE WHOLE YEAR, THE MANUFACTURING SECTOR GREW BY 12%, UP FROM 9.5% IN 2005, SUPPORTED BY STRONGER PERFORMANCES IN THE TRANSPORT ENGINEERING, BIOMEDICAL

MANUFACTURING AND PRECISION ENGINEERING CLUSTERS.

THE WHOLESALE AND RETAIL TRADE SECTOR EXPANDED 6.9% IN 4Q 2006, BUT ITS GROWTH MOMENTUM WAS DOWN BY 3.5%. THE WHOLESALE SEGMENT MODERATED, WITH GROWTH OF NON-OIL RE-EXPORTS HALVED FROM 13% IN 3Q 2006 TO 6.3% IN 4Q 2006. PERFORMANCE OF THE RETAIL SEGMENT IMPROVED FURTHER AS RETAIL SALES WENT UP 7.9% IN 4Q 2006, COMPARED TO 5.2% IN THE PREVIOUS QUARTER. OVER 2006, THE WHOLESALE AND RETAIL SECTOR EXPANDED STRONGLY BY 10%, UP FROM 9.6% IN 2005.

THE FINANCIAL SERVICES SECTOR EXPANDED BY 11% IN 4Q 2006, AFTER GROWING BY 7.4% FROM THE PREVIOUS QUARTER. THE EXPANSION WAS BROAD-BASED ACROSS MOST SEGMENTS. IN PARTICULAR, THE STOCK TRADING SEGMENT ENJOYED A SHARP INCREASE IN ACTIVITY DURING THE QUARTER. FUND MANAGEMENT, ASIAN CURRENCY UNITS, AND FOREX SEGMENTS ALSO REGISTERED STRONG GROWTH IN 4Q 2006. THE STRONG PERFORMANCE IN THE FINAL QUARTER BROUGHT THE SECTOR’S FULL-YEAR GROWTH TO 9.2%, HIGHER THAN THE 7.6% GAIN IN 2005.

THE CONSTRUCTION SECTOR CONTINUED TO EXPAND BY 4.7%, FOLLOWING 5.8% IN 3Q 2006. GROWTH MOMENTUM ON A SEASONALLY ADJUSTED QUARTER-ON-QUARTER BASIS REMAINED STRONG AT 12%. CERTIFIED PAYMENTS GREW SLIGHTLY BY 0.7%, DOWN FROM 9.8% IN 3Q 2006. CONTRACTS AWARDED DIPPED 8.0% IN 4Q 2006 AFTER A RISE IN GROWTH IN THE PREVIOUS QUARTER. FOR THE YEAR, THE SECTOR GREW BY 2.7%, UP FROM 0.7% IN 2005.

THE HOTELS AND RESTAURANTS SECTOR CONTINUED TO STRENGTHEN IN 4Q 2006 WITH A 6.1% INCREASE FOLLOWING A 4.4% GROWTH IN 3Q 2006. VISITOR ARRIVALS ROSE 8.4% COMPARED WITH 4.5% IN THE PREVIOUS QUARTER. THIS HELPED TO RAISE THE AVERAGE OCCUPANCY RATE OF HOTELS TO 88% IN 4Q 2006, COMPARED TO 85% A YEAR EARLIER. HOTEL ROOM REVENUES WENT UP 12% AFTER A 28% INCREASE IN 3Q 2006. FOR THE YEAR AS A WHOLE, THE SECTOR GREW BY 5.1%, UP FROM 4.3% IN 2005, ON THE BACK OF A RECORD 9.7 MILLION VISITOR ARRIVALS.

THE FINANCIAL SERVICES SECTOR EXPANDED BY 11% IN 4Q 2006, AFTER GROWING BY 7.4% A QUARTER EARLIER. THE EXPANSION WAS BROAD-BASED ACROSS MOST SEGMENTS. IN PARTICULAR, THE STOCK TRADING SEGMENT ENJOYED AN INCREASE IN ACTIVITY DURING THE QUARTER. FUND MANAGEMENT, ASIAN CURRENCY UNITS, AND FOREX SEGMENTS ALSO REGISTERED STRONG GROWTH IN 4Q 2006. THE STRONG PERFORMANCE IN THE FINAL QUARTER BROUGHT THE SECTOR’S FULL-YEAR GROWTH TO 9.2%, HIGHER THAN THE 7.6% GAIN IN 2005.

THE TRANSPORT AND STORAGE SECTOR INCREASE BY 4.0% IN 4Q 2006, SAME AS THE PREVIOUS QUARTER. WITHIN THE SECTOR, THE AIR TRANSPORT SEGMENT TURNED IN BETTER PERFORMANCE WHILE THE WATER TRANSPORT SEGMENT MODERATED. SLOWER GROWTH WAS SEEN IN BOTH SEA CARGO AND AIR CARGO HANDLED. MEANWHILE, GROWTH IN AIR PASSENGERSHANDLED AND CONTAINER THROUGHPUT IMPROVED COMPARED TO 3Q 2006. OVERALL, THE TRANSPORT AND STORAGE SECTOR EXPANDED 4.3% IN 2006, SIMILAR TO THE 4.2% IN 2005.

THE INFORMATION AND COMMUNICATIONS SECTOR POSTED A BETTER PERFORMANCE IN 4Q 2006 WITH A GROWTH OF 6.0%, FOLLOWING A 3.6% GAIN IN 3Q 2006. THE NUMBER OF BROADBAND SUBSCRIBERS CONTINUED TO REGISTER DOUBLE-DIGIT GROWTH IN THE QUARTER. INTERNATIONAL TELEPHONE CALL DURATION AND THE NUMBER OF MOBILE PHONE SUBSCRIBERS GREW AT A FASTER PACE COMPARED TO THE PREVIOUS QUARTER. THE SECTOR EXPANDED BY 4.6% DURING THE YEAR, COMPARED TO 5.5% IN 2005.

THE BUSINESS SERVICES SECTOR ROSE BY 5.4% IN 4Q 2006, FOLLOWING A 5.1% GAIN IN THE PREVIOUS QUARTER. THE EXPANSION IN THE SECTOR WAS DRIVEN BY ACTIVITIES IN THE CONSULTANCY, ARCHITECTURAL & ENGINEERING AND BUSINESS REPRESENTATIVE OFFICES AS WELL AS REAL ESTATE SEGMENT. FOR THE YEAR AS A WHOLE, THE BUSINESS SERVICES SECTOR INCREASED BY 5.8%, SIMILAR TO THE 5.9% GROWTH ACHIEVED IN 2005.

APART FROM WHOLESALE AND RETAIL TRADE, ALL SECTORS EXPERIENCED POSITIVE GROWTH MOMENTUM IN 4Q 2006. FOR 2006 AS A WHOLE, ALL SECTORS REGISTERED GROWTH, LED BY MANUFACTURING, WHOLESALE & RETAIL TRADE AND FINANCIAL SERVICES.

OUTLOOK

THE OUTLOOK FOR THE ECONOMY IS GENERALLY POSITIVE ALTHOUGH THERE ARE SOME DOWNSIDE RISKS. THE AVIAN FLU PANDEMIC TREAT HAS RESURFACED AS A GROWING NUMBER OF COUNTRIES REPORTED CASES OF INFECTION IN BIRDS IN RECENT WEEKS. OTHER UNCERTAINTIES INCLUDE THE DISORDERLY UNWINDING OF GLOBAL IMBALANCES, TERRORISM AND THE VULNERABILITY OF OIL PRICES TO SUPPLY SHOCKS. AS A RESULT, THE ECONOMIC GROWTH FORECAST FOR 2007 IS BEING RAISE FROM 4.0% TO 6.0% TO 4.5% TO 6.5%.

REAL ESTATE DEVELOPERS AND AGENTS AND 73% OF THE REAL ESTATE FIRMS ARE THE MOST OPTIMISTIC. THIS SECTOR IS EXPECTING TO DO WELL IN THE FIRST HALF OF 2007.

THE MANUFACTURING SECTOR IS CAUTIOUSLY OPTIMISTIC ABOUT BUSINESS SITUATIONS IN THE NEXT SIX MONTHS OF 2007.

WITHIN THE FINANCIAL SERVICES INDUSTRY, 46% OF THE FIRMS, INCLUDING COMPANIES ENGAGED IN BANKING AND FINANCE, STOCK, SHARE AND BOND BROKERAGE, FUND MANAGEMENT AND INSURANCE ACTIVITIES, ANTICIPATED HIGHER LEVELS OF BUSINESS ACTIVITIES IN THE FIRST 6 MONTHS.

IN THE BUSINESS SERVICES INDUSTRY, 27% OF THE FIRMS EXPECTS BUSINESS TO PICK UP DURING THE FIRST HALF OF THE YEAR. IN PARTICULAR, FIRMS ENGAGED IN ACCOUNTING, ARCHITECTURAL AND ENGINEERING, ADVERTISING AND SECURITY SERVICES AND THE RENTING OF CONSTRUCTION AND INDUSTRIAL MACHINERY FORESEE HIGHER DEMAND FOR THEIR SERVICES.

WITHIN THE CATERING TRADE INDUSTRY, 31% OF THE FIRM EXPRESSES POSITIVE BUSINESS SENTIMENTS. MOST HOTELIERS EXPECTS TO DO WELL IN THE FIRST HALF, IN ANTICIPATION OF HIGHER TOURIST ARRIVALS AND OCCUPANCY RATE.

RETAILERS, PARTICULARLY DEPARTMENT STORES OWNERS AND RETAILER OF FURNITURE AND FURNISHINGS, PREDICTS BUSINESS CONDITIONS TO IMPROVE IN THE NEXT SIX MONTHS.

WHOLESALERS ARE GENERALLY LESS OPTIMISTIC ABOUT THE BUSINESS ENVIRONMENT. IN PARTICULAR, DEALERS OF JEWELLERY AND WATCHES, INDUSTRIES MACHINERY AND EQUIPMENT, TELECOMMUNICATIONS EQUIPMENT AND ELECTRONIC COMPONENTS ARE THOSE WHO FORESEE SLOWER BUSINESS IN THE COMING MONTHS.

ALSO, TRANSPORT AND COMMUNICATIONS INDUSTRY IS LESS POSITIVE ABOUT THE BUSINESS OUTLOOK. SHIPPING LINES EXPECT SLOWER BUSINESS IN THE FIRST HALF DUE TO SEASONAL FACTORS. IN CONTRAST, FIRMS PROVIDING POST AND COURIER SERVICES FORESEE MORE FAVOURABLE CONDITIONS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

TODAY

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