MIRA INFORM REPORT

Report Date :

19.07.2007

IDENTIFICATION DETAILS

Name :	BAXTER HEALTHCARE (ASIA) PTE LTD
Registered Office :	^150 Beach Road, #30-01/08^, Gateway West, Singapore – 189720
Country :	Singapore
Financials (as on) :	31.12.2004
Date of Incorporation :	^22/11/1977
Com. Reg. No.:	^197702531M
Legal Form :	^Pte Ltd
Line of Business :	Trading in Baxter Healthcare Products

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

BAXTER HEALTHCARE (ASIA) PTE LTD

Line Of Business 

TRADING IN BAXTER HEALTHCARE PRODUCTS

Parent Company

BAXTER WORLD TRADE CORPORATION

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY2004

COMPANY

Sales : US$83,974,000

Networth : US$15,085,000

Paid-Up Capital : US$10,044,000

Net result : US$ 2,051,000

Net Margin(%) : 2.44

Return on Equity(%) : 13.60

Leverage Ratio : 1.71 TIMES

COMPANY IDENTIFICATION

^{Subject Company : BAXTER HEALTHCARE (ASIA) PTE LTD}

^{Former Name : BAXTER HEALTHCARE FAR EAST PTE LTD}

^{Business Address : 150 BEACH ROAD}

^#30-01/08

^{GATEWAY WEST}

^{Town : SINGAPORE}

^{Postcode : 189720}

^{County : -}

^{Country : Singapore}

^{Telephone : 6826 1900}

^{Fax : 6324 0565}

6222 9927

^{ROC Number : 197702531M}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{BAXTER HEALTHCARE FAR EAST PTE LTD (DATE OF CHANGE : 23/10/1997)}

^{TRAVENOL FAR EAST PTE LTD (DATE OF CHANGE : 01/03/1988)}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 22/11/1977}

^{Previous Legal Form : -}

^{Summary year : 31/12/2004}

^{Sales : 83,974,000}

^{Net Worth : 15,085,000}

^{Paid-Up Capital : 10,044,000}

^{Employees : -}

^{Net Result : 2,051,000}

^{Auditor : PRICEWATERHOUSECOOPERS}

REFERENCES

^{Litigation : YES}

^{Company status : TRADING}

^{Started : 22/11/1977}

PRINCIPAL(S)

^{GUY G. FUSCO 70142827 Director}

DIRECTOR(S)

^{GUY G. FUSCO 70142827 Director}

^{Appointed on : 01/05/2003}

^{Street : 9 ARDMORE PARK}

^#02-03

^{ARDMORE PARK}

^{Town : SINGAPORE}

^{Postcode : 259955}

^{Country : Singapore}

^{DAVID JONATHAN AKEROYD EA102592 Director}

^{Appointed on : 13/01/2006}

^{Street : 15 ARDMORE ROAD}

^#03-02

^{ARDMORE PARK}

^{Town : SINGAPORE}

^{Postcode : 259959}

^{Country : Singapore}

^{GOH YONG CHEW S1304054J Alternate Director}

^{Appointed on : 13/01/2006}

^{Street : 27 MIMOSA VIEW}

^{Town : SINGAPORE}

^{Postcode : 805607}

^{Country : Singapore}

^{SUBRAMANIAM YOGENDRAN LJ372855 Director}

^{Appointed on : 13/01/2006}

^{Street : 926 SAUGATUCK TRAIL}

^{VERNON HILLS}

^{Town : ILLINOIS}

^{Postcode : 60061}

^{Country : United States}

^{WOO LAN YOAK S1718649C Company Secretary}

^{Appointed on : 28/08/2006}

^{Street : 28 STRATTON DRIVE}

^{Town : SINGAPORE}

^{Postcode : 806883}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{GOH CHOR ENG ANDREW S0016222A}

^{VALERIE LIM LEE HUANG S1297748D}

^{TANG SWEE SENG S1424520J}

^{ALBERTO J BAUSTISTA F0458500M}

^{GARY ALAN QUINCE F1854452X}

^{LEOW HOCK MENG EDMUND S1597537G}

^{GERARD S. WALLACE N351303}

^{AMBROSE CHUA HAI SIEW S1517760H}

^{AJAK K. JAIN E5132812}

^{TAN HOCK LIN E7582078}

^{RICK GIOK HOEY GOUW BA0131075}

ACTIVITY (IES)

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

^{IMPORTERS And EXPORTERS Code: 11760}

^{BASED ON ACRA'S RECORD AS AT 14/05/2007}

^{1) WHOLESALE OF MEDICINAL AND PHARMACEUTICAL PRODUCTS (WESTERN); DEVELOP, MANUFACTURE, FABRICATE, ASSEMBLE, PROCESS, COMPOUND,}

CHARGES

^{Date : 08/12/1995}

^{Comments : CHARGE NO : 9507550}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{BANK OF AMERICA NATIONAL ASSOCIATION}

^{ABN AMRO BANK N.V.}

SHAREHOLDERS(S)

^{BAXTER WORLD TRADE CORPORATION 16,610,000 Company}

^{Street : ONE BAXTER PARKWAY}

^DEERFIELD

^{Town : ILLINOIS}

^{Postcode : 60015-463}

^{Country : United States}

HOLDING COMPANY

^{BAXTER WORLD TRADE CORPORATION UF01373C % : 100}

SUBSIDIARY (IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation : AVERAGE}

LITIGATION(S)

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

^{Case Number : HWS00020/2005}

Defendant BAXTER HEALTHCARE (ASIA) PTE LTD ROC # : 197702531M

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

^{Case Number : DCS000706/2001}

Defendant BAXTER HEALTHCARE (ASIA) PTE LTD ROC # : 197702531M

FINANCIAL ELEMENTS

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

^{Audit Qualification: UNQUALIFIED UNQUALIFIED UNQUALIFIED}

^{(CLEAN) (CLEAN) (CLEAN)}

^{Date Account Lodged: 12/09/2005}

^{Balance Sheet Date: 31/12/2004 31/12/2003 31/12/2002}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 1,331,000 1,655,000 2,153,000}

^{Investments 1,017,000 1,000,000 913,000}

^{Total Fixed Assets: 2,348,000 2,655,000 3,066,000}

^{Inventories: 2,030,000 1,538,000 1,822,000}

^{Receivables: 27,668,000 27,658,000 29,752,000}

^{Cash, Banks, Securities: 7,994,000 6,372,000 4,299,000}

^{Other current assets: 892,000 1,090,000 3,275,000}

^{Total Current Assets: 38,584,000 36,658,000 39,148,000}

^{TOTAL ASSETS: 40,932,000 39,313,000 42,214,000}

^{--- LIABILITIES ---}

^{Equity capital: 10,044,000 10,044,000 10,044,000}

^{Profit & loss Account: 5,041,000 2,990,000 2,137,000}

^{Total Equity: 15,085,000 13,034,000 12,181,000}

^{L/T deferred taxes: 93,000 184,000 968,000}

^{Other long term Liab.: 143,000 232,000 348,000}

^{Total L/T Liabilities: 236,000 416,000 1,316,000}

^{Trade Creditors: 20,037,000 21,057,000 22,974,000}

^{Short term liabilities: 89,000 86,000 97,000}

^{Provisions: 645,000 892,000 965,000}

^{Other Short term Liab.: 246,000 304,000 4,681,000}

^{Prepay. & Def. charges: 4,594,000 3,524,000 -}

^{Total short term Liab.: 25,611,000 25,863,000 28,717,000}

^{TOTAL LIABILITIES: 25,847,000 26,279,000 30,033,000}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 83,974,000 95,513,000 81,230,000}

^{Gross Profit: 18,397,000 16,184,000 15,792,000}

^{Result of ordinary operations 2,344,000 339,000 2,420,000}

^{NET RESULT BEFORE TAX: 2,304,000 317,000 2,435,000}

^{Tax : 253,000 -536,000 135,000}

^{Net income/loss year: 2,051,000 853,000 2,300,000}

^{Interest Paid: 40,000 22,000 23,000}

^{Depreciation: 709,000 846,000 902,000}

^{Wages and Salaries: 5,649,000 6,194,000 -}

^{Financial Income: 7,000 24,000 -}

RATIOS

^{31/12/2004 31/12/2003 31/12/2002}

^{Net result / Turnover(%): 0.02 0.01 0.03}

^{Stock / Turnover(%): 0.02 0.02 0.02}

^{Net Margin(%): 2.44 0.89 2.83}

^{Return on Equity(%): 13.60 6.54 18.88}

^{Return on Assets(%): 5.01 2.17 5.45}

^{Net Working capital: 12973000.00 10795000.00 10431000.00}

^{Cash Ratio: 0.31 0.25 0.15}

^{Quick Ratio: 1.39 1.32 1.19}

^{Current ratio: 1.51 1.42 1.36}

^{Receivables Turnover: 118.61 104.25 131.86}

^{Leverage Ratio: 1.71 2.02 2.47}

^{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

^{NOTE: THE LATEST FINANCIALS FILED IN BY THE COMPANY AS AT 31/12/2004 WERE DEEMED OUTDATED AND SERVE AS A REFERENCE ONLY. THUS, FINANCIAL ANALYSIS IS NOT BEING CARRIED OUT. IN REPLACE, ADVERSE CHECKS ON THE LOCAL DIRECTORS WERE CONDUCTED.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 22/11/1977 AS A LIMITED PRIVATE COMPANY AND WAS FORMERLY KNOWN AS "TRAVENOL FAR EAST PTE LTD".}

^{ON 01/03/1988, SUBJECT CHANGED TO ITS NAMESTYLE OF "BAXTER HEALTHCARE FAR EAST PTE LTD". SUBSEQUENTLY ON 23/10/1997, SUBJECT AGAIN CHANGED TO ITS PRESENT NAMESTYLE OF "BAXTER HEALTHCARE (ASIA) PTE LTD" AND IS TRADING AS A LIMITED PRIVATE COMPANY.}

^{AS AT 14/05/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 16,610,000 SHARES OF A VALUE OF S$16,610,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF MEDICINAL AND PHARMACEUTICAL PRODUCTS (WESTERN), DEVELOP, MANUFACTURE, FABRICATE, ASSEMBLE,PROCESS, COMPOUND, REPACK, IMPORT & EXPORT}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE COMPANY'S PRINCIPAL ACTIVITY IS THAT OF TRADING IN BAXTER HEALTHCARE PRODUCTS.}

^{THE COMPANY'S IMMEDIATE HOLDING CORPORATION IS BAXTER WORLD TRADE CORPORATION AND ULTIMATE HOLDING CORPORATION IS BAXTER INTERNATIONAL INC. BOTH COMPANIES ARE INCORPORATED IN THE UNITED STATES OF AMERICA.}

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

^{THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: HOSPITAL EQUIPMENT & SUPPLIES.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:}

^{* TRADING OF PHARMACEUTICAL PRODUCTS}

^{* REGIONAL SALES OFFICE OF BAXTER INTERNATIONAL, INC. FOR THE ASIA REGION}

^{3 CORE BUSINESSES:}

^{* BIOSCIENCE}

^{* MEDICATION DELIVERY}

^{* RENAL}

^PRODUCTS:

^{* BIOPHARMACEUTICALS}

^{- ANTIBODY THERAPY}

^{- CRITICAL CARE THERAPY}

^{- ANCILLARY PRODUCTS}

^{- NUTRITION}

^{- ANESTHESIA AND PAIN MANAGEMENT}

^{- ONCOLOGY}

^{* RENAL}

^{- HOMECHOICE}

^{- PD SOLUTIONS}

^{* ETC}

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

^{* AMERICAN CHAMBER OF COMMERCE}

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^{NO. OF EMPLOYEES :}

^{* COMPANY - 2004: 84 (2003: 93)}

^{NEWS ON ULTIMATE HOLDING CORPORATION IS BAXTER INTERNATIONAL INC:}

^{BAXTER ANNOUNCES INVESTMENT OF $60 MILLION TO EXPAND MANUFACTURING CAPACITY IN CHINA}

^{DEERFIELD, ILL., MARCH 22 /PRNEWSWIRE-FIRSTCALL/ -- BAXTER INTERNATIONAL INC. ANNOUNCED TODAY PLANS TO INVEST APPROXIMATELY $60 MILLION OVER THE NEXT FIVE YEARS TO EXPAND PRODUCTION CAPACITY AT ITS FOUR MANUFACTURING FACILITIES IN CHINA TO SUPPORT SALES GROWTH IN THE COMPANY'S MEDICATION DELIVERY AND RENAL BUSINESSES. BAXTER'S SALES IN CHINA, WHICH WERE APPROXIMATELY $100 MILLION IN 2005, ARE EXPECTED TO MORE THAN DOUBLE BY 2010, GIVEN THE ANTICIPATED INCREASE IN DEMAND FOR THE COMPANY'S INTRAVENOUS SOLUTIONS (IV) AND PERITONEAL DIALYSIS (PD) PRODUCTS.}

^{"THIS INVESTMENT SYMBOLIZES BAXTER'S STRONG COMMITMENT TO MEETING LOCAL NEEDS FOR CRITICAL PRODUCTS AND ADVANCING HEALTHCARE IN CHINA AND ACROSS THE ASIA PACIFIC REGION," SAID PETER J. ARDUINI, PRESIDENT OF BAXTER'S MEDICATION DELIVERY BUSINESS. "IT ALSO UNDERSCORES THE IMPORTANCE OF THIS KEY MARKET IN BAXTER'S CONTINUING GEOGRAPHIC EXPANSION AND GROWTH."}

^{IN ADDITION TO FOUR MANUFACTURING FACILITIES IN CHINA, BAXTER OPERATES SEVEN OTHERS IN COUNTRIES ACROSS THE ASIA PACIFIC REGION, INCLUDING INDIA, JAPAN, SINGAPORE, AUSTRALIA AND THE PHILIPPINES. "IN THE LAST YEAR AND A HALF, BAXTER HAS SIGNIFICANTLY STRENGTHENED ITS REGIONAL PRESENCE, INCLUDING THE RECENT OPENING OF THE COMPANY'S NEW ASIA PACIFIC HEADQUARTERS IN SHANGHAI," SAID GERALD LEMA, PRESIDENT OF BAXTER ASIA PACIFIC. "BAXTER'S NEW REGIONAL FOCUS POSITIONS THE COMPANY WELL TO MEET THE GROWING HEALTHCARE NEEDS OF PATIENTS ACROSS THE REGION."}

^{-- EXTRACTED VIA DEERFIELD, ILL., MARCH 22 /PRNEWSWIRE}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE ON 01/06/2007 AS A TELE-INTERVIEW REQUEST WAS DENIED. YOUR PROVIDED CONTACT NUMBERS; TEL: 6555 1900 AND FAX: 6222 9925 ARE NOT VALID.}

^{NEW REGISTERED & BUSINESS ADDRESS:}

^{150 BEACH ROAD}

^#30-01/08

^{GATEWAY WEST}

^{SINGAPORE 189720}

^{DATE OF CHANGE OF ADDRESS: 15/01/2007}

^{OLD REGISTERED & BUSINESS ADDRESS:}

^{10 HOE CHIANG ROAD}

^#11-01

^{KEPPEL TOWERS}

^{SINGAPORE 089315}

^{DATE OF CHANGE OF ADDRESS: 16/07/1999}

^WEBSITE:

^{* http://www.baxter.com.sg}

^EMAIL:

^{* enquiries_asia@baxter.com}

MANAGEMENT

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

^{1) GUY G. FUSCO, AN AMERICAN}

^{- BASED IN SINGAPORE}

^{2) DAVID JONATHAN AKEROYD, A NEW ZEALANDER}

^{- BASED IN SINGAPORE}

^{3) RICK GIOK HOEY GOUW (ALTERNATE DIRECTOR)}

^{- BASED IN SINGAPORE}

^{4) SUBRAMANIAM YOGENDRAN, A CANADIAN}

^{- BASED IN THE UNITED STATES OF AMERICA}

^{5) GOH YONG CHEW, A SINGAPOREAN (ALTERNATE DIRECTOR)}

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

ADVERSE ON DIRECTORS

^{ALTERNATE DIRECTOR'S NAME: GOH YONG CHEW}

^{ADVERSE REPORT AGAINST DIRECTOR: NOT AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: OWNS 1}

^{ANNUAL VALUE: S$20,400}

^{CO-OWNER: CHUA GEK SUAN}

^{ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.}

^{* ADVERSE CHECKS ON FOREIGN DIRECTORS COULD NOT BE CONDUCTED.}

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