MIRA INFORM REPORT

Report Date :

26.05.2007

IDENTIFICATION DETAILS

Name :	KUOK OILS & GRAINS PTE LTD

Registered Office :	^{1 Kim Seng Promenade, #05-01, Great World City, Singapore – 237994}

Country :	Singapore

Financials (as on) :	31.12.2005

Date of Incorporation :	^23/03/1989

Com. Reg. No.:	^198901130Z

Legal Form :	^{Pte Ltd}

Line of Business :	Trading in Commodities and Investment Holding.

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Exists

Subject Company

KUOK OILS & GRAINS PTE LTD

Line Of Business

TRADING IN COMMODITIES AND INVESTMENT HOLDING

Parent Company

Financial Elements

FY 2005

CONSOLIDATED

Sales : USD5,946,520,000

Networth : USD294,640,000

Paid-Up Capital : USD11,231,000

Net result : USD15,072,000

Net Margin(%) : 0.25

Return on Equity(%) : 5.12

Leverage Ratio : 4.45

COMPANY IDENTIFICATION

^{Subject Company: KUOK
OILS & GRAINS PTE LTD}

^{Former Name: -}

^{Business Address: 1 KIM SENG PROMENADE}

^#05-01

^{GREAT WORLD
CITY}

^{Town: SINGAPORE}

^{Postcode: 237994}

^{County: -}

^{Country: Singapore}

^{Telephone: 6738
8622, 6839 7500}

^{Fax: 6738 6366, 6738 6933}

^{ROC Number: 198901130Z}

^Reg.^Town^{:
-}

SUMMARY

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

^{Legal Form: Pte
Ltd}

^{Date Inc.: 23/03/1989}

^{Previous Legal Form: -}

^{Summary year: 31/12/2005}

^{Sales: 5,946,520,000}

^{Net worth: 294,640,000}

^{Capital:
30,000,000}

^{Paid-Up Capital: 11,231,000}

^{Employees: Not
Available}

^{Net result: 15,072,000}

^{Share value: 1}

^{Auditor: FOO
KON TAN GRANT THORNTON}

REFERENCES

^{Litigation: Yes}

^{Company status: TRADING}

^{Started: 23/03/1989}

PRINCIPAL(S)

^{LEE HOCK KUAN S0122022E Director}

DIRECTOR(S)

^{LEE HOCK KUAN S0122022E Director}

^{Appointed on: 28/07/1997}

^{Street: 8
JALAN SENANDONG}

^{SWISS CLUB PARK}

^{Town: SINGAPORE}

^{Postcode: 288760}

^{Country: Singapore}

^{KWOK KIAN HAI S0350058F Director}

^{Appointed on: 10/04/1989}

^{Street: 9
CALDECOTT CLOSE}

^{CALDECOTT HILL ESTATE}

^{Town: SINGAPORE}

^{Postcode: 299117}

^{Country: Singapore}

^{KUOK KHOON EAN S2555419A
Director}

^{Appointed on:
01/02/1991}

^{Street: 6A
QUEEN ASTRID PARK}

^{Town: SINGAPORE}

^{Postcode: 266797}

^{Country: Singapore}

^{TAN POH LEE ERIC S1807228I
Company Secretary}

^{Appointed on: 01/04/2000}

^{Street:
3 JALAN RENGKAM}

^{TAI PENG GARDENS}

^{Town: SINGAPORE}

^{Postcode: 537560}

^{Country: Singapore}

^{TAN YEW NGEE 560422-71- Director}

^{Appointed on: 10/11/2000}

^{Street:
38 JLN BIJAKSANA}

^{CENTURY GARDEN}

^{JOHOR BARU}

^{Town: JOHOR}

^{Postcode: 80250}

^{Country: Malaysia}

^{KEK CHIN ANN S2511015C Director}

^{Appointed on: 05/05/2003}

^{Street: 7 BRIGHT HILL DRIVE}

^#22-02

^{THOMSON VIEW
CONDOMINIUM}

^{Town: SINGAPORE}

^{Postcode: 579599}

^{Country: Singapore}

^{WU LONG PENG S1853124J Director}

^{Appointed on: 27/06/2006}

^{Street: 26 ALMOND STREET}

^{Town: SINGAPORE}

^{Postcode: 677866}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{TEO JOO KIM S0285326D}

^TAY^{CHENG IMM DAWN S1520569E}

^{LIU TAI FUNG 4110061054}

^{OH EWE MING JANICE S1792356J}

^{ANOOP SINGH S2598501Z}

^{DATUK NEO AH PANG @ LIANG KIM BANG 380809-08-}

^{PU JIN XIN K6607675}

ACTIVITY(IES)

^{COMMODITY TRADERS Code:5010}

^{AGRICULTURAL MARKETING Code:370}

^{OILS - VEGETABLE Code:15500}

^{HOLDING COMPANIES
Code:11320}

^{BASED ON ACRA'S RECORD AS AT
10/05/2007}

^{1) WHOLESALE OF CEREALS, SUGAR, OILS, SAUCES,
BEVERAGES AND DAIRY PRODUCTS; WHOLES FOODSTUFFS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{OVERSEA-CHINESE BANKING CORPORATION} ^LIMITED

^{BANK OF AMERICA, NATIONAL} ^ASSOCIATION

^{CREDIT AGRICOLE INDOSUEZ}

SHAREHOLDERS(S)

^{KUOK (SINGAPORE) LIMITED 3,250,000 Company}

^{Street: 1
KIM SENG PROMENADE}

^#07-01

^{GREAT WORLD
CITY}

^{Town: SINGAPORE}

^{Postcode: 237994}

^{Country: Singapore}

^{HARPOLE RESOURCES LIMITED 8,125,000 Company}

^{Street: THE
OFFICES OF OFFSHORE INCORP LTD}

^{PO
BOX 957
OFFSHORE INCORPS CTR}

^{TORTOLA
B.V.I}

^{Town: -}

^{Postcode: -}

^{Country: Virgin Islands
(British)}

^{BUXTON LTD 1,764,286 Company}

^{Street: OFFSHORE
CHAMBERS PO BOX 217}

^APIA
SAMOA

^{Town: -}

^{Postcode: -}

^{Country: Samoa}

^{GREENACRES LTD 325,000 Company}

^{Street: LEVEL
1 CENTRAL BANK OF SAMOA}

^{BUILDING BEACH ROAD APIA SAMOA}

^{Town: -}

^{Postcode: -}

^{Country: Samoa}

^{FFM BERHAD 2,785,714 Company}

^{Street: PT 45125, BATU 15 1/2}

^{SUNGAI PELONG}

^{SUNGAI BULOH}

^{Town: SELANGOR}

^{Postcode: 47000}

^{Country: Malaysia}

FORMER SHAREHOLDER(S)

^{FEDFLOUR TRADING SINGAPORE PL 4,000,000}

^{KERRY COMPANY LTD [HONG
KONG] 3,000,000}

^{KERRY 1989 LTD 3,000,000}

^{TEO LA-MEI 1}

^{KUOK OON KWONG 1}

SUBSIDIARY(IES)

^{KOG INVESTMENTS PTE LTD}

^{CHEVIOT PTE LTD}

^{KUOK OILS GRAINS PHILLIPINES INC}

^{KERRY OILS & GRAINS (CHINA) LIMITED}

^{KUOK OILS & GRAINS TRADING PTE LTD}

^{LARNIA PTE LTD}

^{EVERBRIGHT SERVICES CO LTD}

^{KERRY OILS & GRAINS (CHINA)} ^{PRIVATE LIMITED}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: LEVEL}

^{Financial Situation: AVERAGE}

LITIGATION(S)

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

^{Case Number: MCS01242/2007}

Defendant KUOK OILS & GRAINS PTE LTD ROC #: 198901130Z

FINANCIAL ELEMENTS

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

^{Audit Qualification: UNQUALIFIED
(CLEAN) UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 24/07/2006}

^{Balance Sheet Date: 31/12/2005 31/12/2004 31/12/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED CONSOLIDATED}

^---
ASSETS

^{Intangible Fixed
Assets: 47,606,000 47,067,000 32,407,000}

^{Tangible Fixed Assets: 346,835,000 317,793,000 239,274,000}

^{Investments 4,604,000 8,568,000 3,903,000}

^{Total Fixed Assets}^{: 399,045,000 373,428,000 275,584,000}

^{Inventories: 546,091,000 521,263,000 492,613,000}

^{Receivables: 271,535,000 280,991,000 270,599,000}

^{Cash,Banks,Securities: 68,777,000 138,783,000 71,700,000}

^{Other current assets: 108,874,000 119,797,000 47,986,000}

^{Total Current Assets}^{: 995,277,000 1,060,834,000 882,898,000}

^{TOTAL
ASSETS: 1,394,322,000 1,434,262,000 1,158,482,000}

^{---
LIABILITIES}

^{Equity capital: 11,231,000 11,231,000 11,816,000}

^{Reserves: 7,918,000 -6,186,000 -2,643,000}

^{Profit & loss
Account: 155,572,000 152,419,000 154,683,000}

^{Other: 41,857,000 40,711,000 44,354,000}

^{Surplus equity: 78,062,000 78,062,000 85,908,000}

^{Total Equity: 294,640,000 276,237,000 294,118,000}

^{Long Term Loans: 201,067,000 135,509,000 66,705,000}

^{Other long term Liab.: 13,413,000 13,647,000 14,146,000}

^{Total L/T Liabilities}^{: 214,480,000 149,156,000 80,851,000}

^{Trade Creditors: 165,851,000 311,304,000 170,294,000}

^{Prepay. & Def.
charges: 44,584,000 37,678,000 37,608,000}

^{Advanced payments: 83,113,000 62,109,000 50,379,000}

^{Due to Bank: 571,801,000 590,317,000 506,900,000}

^{Provisions: 2,678,000 4,887,000 9,166,000}

^{Other Short term
Liab.: 17,175,000 2,574,000 9,166,000}

^{Total short term Liab}^{.: 885,202,000 1,008,869,000 783,513,000}

^{TOTAL
LIABILITIES: 1,099,682,000 1,158,025,000 864,364,000}

PROFIT & LOSS ACCOUNT

^{Net Sales 5,946,520,000 6,294,722,000 4,593,515,000}

^{Gross Profit: 223,359,000 205,039,000 224,351,000}

^{Result of ordinary operations - 33,933,000 94,969,000}

^{NET RESULT BEFORE TAX: 23,213,000 17,101,000 83,267,000}

^{Tax: 6,091,000 9,886,000 10,539,000}

^{Net income/loss year: 15,072,000 9,221,000 62,939,000}

^{Interest Paid: 34,495,000 20,170,000 13,159,000}

^{Depreciation: 26,317,000 21,877,000 19,815,000}

^{Dividends: 2,499,000 9,764,000 15,026,000}

^{Directors Emoluments: 1,020,000 2,710,000 2,057,000}

^{Purchases,Sces & Other
Goods: 5,723,161,000 6,089,683,000 -}

^{Wages and Salaries: 59,752,000 42,570,000 38,187,000}

^{Financial Income: 2,651,000 1,519,000 496,000}

RATIOS

^{31/12/2005 31/12/2004 31/12/2003}

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

^{Fin. Charges /
Turnover(%): 0.01 0.00 0.00}

^{Stock / Turnover(%): 0.09 0.08 0.11}

^{Net Margin(%): 0.25 0.15 1.37}

^{Return on Equity(%): 5.12 3.34 21.40}

^{Return on Assets(%): 1.08 0.64 5.43}

^{Dividends Coverage: 6.03 0.94 4.19}

^{Net Working capital: 110075000.00 51965000.00 99385000.00}

^{Cash Ratio: 0.08 0.14 0.09}

^{Quick Ratio: 0.38 0.42 0.44}

^{Current ratio: 1.12 1.05 1.13}

^{Receivables Turnover: 16.44 16.07 21.21}

^{Leverage Ratio: 4.45 5.05 3.30}

^{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 FAIR IN VIEW OF} ^{THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE
WITH TOTAL EQUITY IMPROVED BY 6.66% TO US$294,640,000 IN FY 2005 (2004:
US$276,237,000).}

^THE ^{RISE IN TOTAL EQUITY COULD BE DUE TO THE FOLLOWING REASONS:}

^{-RISE IN ACCUMULATED PROFIT BY 2.07% TO
US$155,572,000} ^{(2004:
US$152,419,000)}

^{-RESERVES OF US$7,918,000 (2004:
US$-6,186,000).}

^LEVERAGE:

^{IN THE SHORT TERM, SUBJECT WAS LARGELY
FINANCED BY AMOUNT DUE TO BANK} ^{WHICH MADE UP 64.60% (2004: 58.51%) OF THE TOTAL CURRENT
LIABILITIES} ^{AND AMOUNTED TO US$571,801,000 (2004: US$590,317,000).
THE BREAKDOWN} ^{IS AS FOLLOWS:}

^{-BANK OVERDRAFTS - 2005: US$500,000 (2004:
US$5,065,000)}

^{-TRUST RECEIPTS - 2005: US$142,611,000 (2004:
US$151,479,000)}

^{-BANK LOANS - 2005: US$389,009,000 (2004:
US$426,832,000)}

^{-DISCOUNTING BILLS - 2005: US$39,681,000
(2004: US$6,941,000)}

^{BESIDES THE ABOVE, SUBJECT WAS ALSO FINANCED
BY TRADE CREDITORS OF} ^{US$165,851,000 (2004: US$311,304,000) WHICH FELL BY 46.72% AND THE} ^{BREAKDOWN IS AS FOLLOWS:}

-SUBSIDIARIES OF A CORPORATE SHAREHOLDER - 2005: US$2,100,000 (2004: US$$18,426,000)

^{-SHAREHOLDER - 2005: US$8,000 (2004:
US$6,000)}

^{-THIRD PARTIES - 2005: US$163,743,000 (2004:
US$292,872,000)}

^{IN THE LONG TERM, SUBJECT WAS FINANCED BY
BANK BORROWING WHICH} ^{AMOUNTED TO US$201,067,000 (2004: US$135,509,000).}

^{IN ALL, LEVERAGE RATIO DROPPED TO 4.45 TIMES
IN FY 2005, DOWN FROM} ^{5.05 TIMES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS
PASSABLE. NET WORKING} ^{CAPITAL ROSE SHARPLY BY 1.12 TIMES TO US$110,075,000} ^{(2004:
US$51,965,000).}

^{SUBJECT EXPERIENCED A RISE IN CURRENT RATIO
FROM 1.05 TIMES TO} ^{1.12 TIMES BUT A DECLINE IN QUICK RATIO FROM 0.42 TIMES TO} ^0.38
TIMES.

^{CASH AND CASH EQUIVALENTS DECLINED MARKEDLY
BY 50.44% TO} ^{US$68,777,000
(2004: US$138,783,000) AND CONSISTED OF:}

^{-FIXED DEPOSITS - 2005: US$25,664,000 (2004:
US$66,627,000)}

^{-CASH AND BANK BALANCES - 2005: US$43,113,000
(2004: US$72,156,000)}

^{PROFITABILITY:}

^{REVENUE FELL BY 5.53% TO US$5,946,520,000,
DOWN FROM US$6,294,722,000} ^{IN FY 2004. HOWEVER, NET PROFIT ROSE MARKEDLY BY 63.45% TO} ^{US$15,072,000
(2004: US$9,221,000). THIS COULD BE DUE TO HIGHER} ^{GROSS MARGIN OF
3.76% (2004: 3.26%) AND A SHARP RISE IN OTHER} ^{OPERATING INCOME BY
1.09 TIMES (2005: US$13,568,000;} ^{2004: US$6,488,000). HENCE, NET
MARGIN ROSE TO 0.25% IN FY 2005,} ^{UP FROM 0.15%.}

^REVENUE:

^{-SALE
OF GOODS - 2005: US$5,916,014,000 (2004: US$6,275,036,000)}

^{-SERVICE RENDERED - 2005: US$30,506,000
(2004: US$19,686,000)}

^{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, INTEREST COVERAGE WAS SUFFICIENT AT 1.67 TIMES} ^{(2004:
1.85 TIMES) DESPITE THE FALL.}

^{NOTES TO THE
FINANCIAL STATEMENTS:}

^{CASH AND CASH EQUIVALENTS:}

^{INCLUDED IN FIXED DEPOSITS IS AN AMOUNT OF
US$18,088,023} ^{(2004:
US$26,987,089) HELD AS SECURITY AGAINST LETTER OF CREDIT ISSUED} ^{BY
ONE OF THE SUBSIDIARIES IN INDIA.}

^{FIXED DEPOSIT OF US$26,709 (2004: US$29,522)
IS HELD AS SECURITY} ^{AGAINST BANK GUARANTEE ISSUED IN FAVOUR OF CUSTOMS AUTHORITIES FOR
A} ^{HIGH COURT INJUNCTION ORDER IN THE MATTER OF A WRIT PETITION FILED} ^{BY A SUBSIDIARY AGAINST OVER-VALUTION OF IMPORT.}

^{SHARE CAPITAL:}

^{ORDINARY SHARES:}

^{AT BEGINNING AND END OF FINANCIAL YEAR -
2005: 16,250,000 SHARES}

^{(2004: 16,250,000 SHARES)}

^{- 2005: US$9,065,000} ^{(2004: US$9,065,000)}

^{CUMULATIVE REDEEMABLE PREFERENCE SHARES:}

^{AT END OF THE FINANCIAL YEAR - 2005:
3,700,000 SHARES} ^{(2004:
3,700,000 SHARES) - 2005: US$2,166,000} ^{(2004: US$2,166,000)}

^{TOTAL ISSUED SHARE CAPITAL}

^{-2005: 19,950,000 SHARES (2004: 19,950,000
SHARES)}

^{-2005: US$11,231,000 (2004: US$11,231,000)}

^BORROWINGS:

^{THE BANK OVERDRAFTS OF THE GROUP ARE SECURED
BY TRADE RECEIVABLES,} ^{INVENTORIES AND PROPERTY, PLANT AND EQUIPMENT OF CERTAIN
SUBSIDIARIES.}

^{CAPITAL COMMITMENTS:}

^{CAPITAL COMMITMENTS IN RELATION TO PROPERTY,
PLANT AND EQUIPMENT} ^{CONTRACTED FOR A THE BALANCE SHEET DATE NOT RECOGNISED IN THE} ^{FINANCIAL STATEMENTS:}

^{-EXPENDITURE FOR PROPERTY, PLANT AND
EQUIPMENT CONTRACTED FOR -} ^{2005: US$7,416,000 (2004: US$23,712,000).}

^{EVENT AFTER BALANCE SHEET DATE:}

^{ON 30/01/2006, IN LINE WITH THE ADMENDMENTS
TO THE COMPANIES ACT CAP} ^{50, THE CONCEPTS OF PAR VALUE OF SHARES AND AUTHORISED SHARE
CAPITAL} ^{HAVED BEEN ABOLISHED AND ON THAT DATE, THE SHARES OF THE
COMPANY} ^{CEASED TO HAVE A PAR VALUE. IN ADDITION, THE AMOUNT STANDING
IN THE} ^{SHARE PREMIUM RESERVE HAD BECOME PART OF THE COMPANY'S SHARE
CAPITAL.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{23/03/1989 AS A LIMITED PRIVATE COMPANY
AND IS TRADING UNDER THE} ^{PRESENT NAMESTYLE AS "KUOK OILS &
GRAINS PTE LTD".}

^{AS AT 10/05/2007, THE COMPANY HAS AN ISSUED
AND PAID-UP CAPITAL OF} ^{16,250,000 ORDINARY SHARES, OF A VALUE OF S$100,000,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF CEREALS, SUGAR, OILS, SAUCES,
BEVERAGES AND DAIRY} ^{PRODUCTS; WHOLES}

^FOODSTUFFS

^{2) OTHER INVESTMENT HOLDING COMPANIES}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE
PRINCIPAL ACTIVITIES OF} ^{THE COMPANY CONSIST OF TRADING IN COMMODITIES AND INVESTMENT
HOLDING.}

^{FROM THE RESEARCH DONE, SUBJECT IS A SUPPLIER
OF VARIOUS TYPES OF} ^{CRUDE AND REFINED EDIBLE OIL, RBD PALM OIL, OLEIN, STEARIN,} ^{PFAD,
VEGETABLE OIL, VEGETABLE GHEE/VANASPATI, PALM KERNEL OIL/OLEIN,} ^{SOYABEAN
OIL, SUNFLOWERSEED OIL, CORN OIL AND GRAPESEED OIL, COCONUT} ^{OIL,
GROUNDNUT OIL, SHORTENING AND THEIR BY-PRODUCTS. SUBJECT EXPORTS} ^{A WIDE RANGE
OF QUALITY VEGETABLE OILS AND SPECIALTY FATS TO MARKETS} ^{WORLDWIDE IN
BULK, DRUMS, TINS, BOTTLES, CARTONS AND JERRY CANS,} ^{GRAIN PRODUCTS
INCLUDE WHEAT FLOUR, OILSEEDS PRODUCTS, ANIMAL FEED,} ^{SOYABEAN,
MAIZE, COPRA EXPELLERS AND PALM KERNEL PRODUCTS. THERE ARE} ^{ABOUT 160
PERSONS (COMPANY) EMPLOYED IN THE BUSINESS.}

^{TRADE NAMES:}

^*MEIZAN

^*VIKING

^*ALFFI

^*NAFIS

^*KING's

^*KORIE

^*NEPTUNE

^{*FRY RITE}

^*CRYSTAL

^{*SUN DEW}

^*RUPCHANDA

^*SIMPLY

^{*GOLD INGOTS}

^*SATELLITE

^{*BIG 8}

^{*BLUE TEAM}

^{*TRU BAKE}

^{SOME OF THE EXPORT COUNTRIES:}

^{*SUDAN,
CAMBODIA, BANGLADESH, UGANDA,
SOMALIA, AFGHANISTAN, PAKISTAN,} ^MALAWI^,

^{BURUNDI, ETC}

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

^{*SINGAPORE MANUFACTURERS' FEDERATION}

^{*SINGAPORE CHINESE CHAMBERS OF
COMMERCE & INDUSTRY}

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

^{IN 2004, THE ULTIMATE HOLDING COMPANY WAS
KERRY GROUP LIMITED, A} ^{COMPANY INCORPORATED IN THE COOK ISLANDS.}

^{PRIOR TO 21/12/2005, KERRY GROUP LIMITED WAS
THE ULTIMATE HOLDING} ^{COMPANY BY VIRTUE OF HOLDING AN INTEREST OF 52% IN THE COMPANY.
SINCE} ^{21/12/2005, THE INTEREST HELD BY KERRY GROUP LIMITED HAS BEEN
REDUCED} ^{TO 50% AND THEREFORE KERRY GROUP LIMITED CEASED TO BE THE
ULTIMATE} ^{HOLDING COMPANY.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{*GROUP - 2005: NOT AVAILABLE}

^{- 2004: 9,033 (FULL-TIME: 6,824; PART-TIME:
5,408)}

^{- 2003: 8,449 (FULL-TIME: 5,408; PART-TIME:
3,041)}

^{- 2002: 7,765 (FULL TIME: 5,876; PART TIME:
1,889)}

^{- 2001: 6,331}

^{- 2000: 6,015}

^{*COMPANY (FULL-TIME) - 2005: NOT AVAILALBE
(2004: 152; 2003: 143;} ^{2002: 143; 2001: 166;} ^{2000: 159)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{1 KIM SENG PROMENADE}

^#05-01

^GREAT^{WORLD
CITY}

^SINGAPORE²³⁷⁹⁹⁴

^{DATE OF CHANGE OF ADDRESS: 23/12/1996}

^{- RENTED PREMISE}

^{- OWNED BY: MIDPOINT PROPERTIES LTD}

^WEBSITE:

^{www.kuokgroup.com.sg}

^EMAIL:

^{trading@kuokoil.com}

MANAGEMENT

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

^{1) TAN YEW NGEE, A MALAYSIAN}

^{- BASED IN MALAYSIA.}

^{2) LEE HOCK KUAN, A SINGAPOREAN}

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

^{KERRY OILS & GRAINS (CHINA) PRIVATE
LIMITED}

^{3) KWOK KIAN HAI, A SINGAPOREAN}

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

^{KUOK (SINGAPORE) LIMITED}

^{KERRY OILS & GRAINS (CHINA) PRIVATE
LIMITED}

^{4) WU LONG PENG, A SINGAPOREAN}

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

^SINGAPORE^{ADHESIVES & CHEMICALS PTE. LTD.}

^{NEWQUEST (TRADING) PTE LTD}

^{PACIFIC CARRIERS LIMITED}

^{INTAN KARANG MACHINERIES PTE LTD}

^{NEUMETAL PTE. LTD.}

^{NEWSHIP AGENCIES PTE LTD}

^{SIS '88 PTE LTD}

^{MTK CHEMICALS PTE. LTD.}

^{ROYAL AHOLD-KERRY (TOPS) PTE LTD}

^{ALBIZZIA SHIPPING PTE LTD}

^{5) KEK CHIN ANN, A SINGAPORE PERMANENT RESIDENT}

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

^{LIAISON TRADING PTE LTD}

^{KERRY OILS & GRAINS (CHINA) PRIVATE
LIMITED}

^{7) KUOK KHOON EAN, A SINGAPORE
PERMANENT RESIDENT}

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

^{CHOMEL PTE LTD}

^{KUOK (SINGAPORE) LIMITED}

^{ALLGREEN PROPERTIES LIMITED}

^{KERRY OILS & GRAINS (CHINA) PRIVATE
LIMITED}

Singapore’s Country Rating 2006

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION APPEARS TO BE VERY STABLE.

ECONOMIC GROWTH IS BECOMING MORE MODERATE AS INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND FOR ELECTRONIC PRODUCTS.

ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE’S STRONG FINANCIAL CONDITION.

AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITS POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR’S SHARE HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND BIOTECHNOLOGIES.

ASSETS

ONE OF THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR ROLE IN ITS PERFORMANCE.
ONE OF ASIA’S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS TERMS.
WORKFORCE’S EDUCATION AND SKILL LEVEL IS VERY HIGH.
A MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING COMPANY, TEMASEK.
THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.
GREAT POLITICAL STABILITY.

WEAKNESSES

ECONOMY REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.
MUST ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER OTHER ASIAN ECONOMIES
REFORMS ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM MODERNIZATION.
AGING POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.

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%)

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