MIRA INFORM REPORT

Report Date :

05.06.2007

IDENTIFICATION DETAILS

Name :	TIW INTERNATIONAL INC

Registered Office :	^{5000 Loyang Crescent}^{, Loyang Offshore Supply Base, Singapore – 508988}

Country :	Singapore

Financials (as on) :	31.03.2006

Date of Incorporation :	^25/09/1980

Com. Reg. No.:	^{F 02920H}

Legal Form :	^{Foreign Company}

Line of Business :	Sale, Rental, Installation, Repair and Maintenance of Oilfield Toold and Equipment in the Asia Pacific Region

RATING & COMMENTS

MIRA’s Rating :

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 :	Slow

Litigation :	Clear

Subject Company

TIW INTERNATIONAL INC

Line Of Business

SALE, RENTAL, INSTALLATION, REPAIR AND MAINTENANCE OF OILFIELD TOOLD AND EQUIPMENT IN THE ASIA PACIFIC REGION

Parent Company

Financial Elements

FY2006

BRANCH

Sales : S$ 5,397,214

Networth : -S$10,435,759

Paid-Up Capital : -

Net result : -S$ 58,497

Net Margin(%) : -1.08

Return on Equity(%) : 0.56 (POSITIVE ROE DUE TO OFF-SET OF NEGATIVE EARNINGS AND

NEGATIVE TOTAL EQUITY)

Leverage Ratio : -1.39 TIMES

COMPANY IDENTIFICATION

^{Subject Company : TIW INTERNATIONAL INC}

^{Former Name :
-}

^{Business Address : 5000
LOYANG CRESCENT}

^{LOYANG
OFFSHORE SUPPLY BASE}

^{Town :
SINGAPORE}

^{Postcode :
508988}

^{County :
-}

^{Country :
Singapore}

^{Telephone :
6545 0110}

^{Fax :
6545 0137}

^{ROC Number :
F 02920H}

^Reg.^Town ^{: -}

SUMMARY

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

^{Legal Form :
Foreign Company}

^{Date Inc. :
25/09/1980}

^{Previous Legal Form : -}

^{Summary year :
31/03/2006}

^{Sales :
5,397,214}

^{Net Worth :
-10,435,759}

^{Capital :
10}

^{Employees :
-}

^{Net Result :
-58,497}

^{Auditor :
ERNST & YOUNG}

REFERENCES

^{Litigation :
No}

^{Company status : TRADING}

^{Started :
25/09/1980}

PRINCIPAL(S)

No principals recorded in our Database

DIRECTOR(S)

^{STEPHEN RILEY PEARCE 130755097 Director}

^{Appointed on :
23/04/1986}

^{Street :
12300 SOUTH MAIN ST.}

^{TX 77035}

^{Town :
HOUSTON}

^{Postcode :
-}

^{Country :
United States}

^{GARY MICHAEL PEARCE 130802231 Director}

^{Appointed on :
23/04/1986}

^{Street :
12312 SOUTH MAIN ST.}

^{TX 77035}

^{Town :
HOUSTON}

^{Postcode :
-}

^{Country :
United States}

^{LOUIS M PEARCE III 130991650 Director}

^{Appointed on :
02/04/1984}

^{Street :
12300 SOUTH MAIN ST.}

^{TX. 77035}

^{Town :
HOUSTON}

^{Postcode :
-}

^{Country :
United States}

^{BRITT OLIVER BRADDICK 131307360 Director}

^{Appointed on :
23/04/1986}

^{Street :
1038 MARTIN LANE, TX 77018}

^{Town :
HOUSTON}

^{Postcode :
-}

^{Country :
United States}

^{ABDEL RAOUF R FAHIM 135143336 Director}

^{Appointed on :
01/04/2003}

^{Street :
2919 PLANTATION
WOOD}

^{MISSOURI CITY, TX 77459-4271}

^{Town :
-}

^{Postcode :
-}

^{Country :
United States}

^{R J JESSSE 151684884 Director}

^{Appointed on :
02/04/1984}

^{Street :
12300 SOUTH MAIN ST.}

^{TX 77035}

^{Town :
HOUSTON}

^{Postcode :
-}

^{Country :
United States}

^{RICHARD ELLIS BEAN 7800-28798 Director}

^{Appointed on :
23/04/1986}

^{Street :
3107 ROBINHOOD, TX 77005}

^{Town :
HOUSTON}

^{Postcode :
-}

^{Country :
United States}

^{CARL C WASHINGTON F2046387 Director}

^{Appointed on :
02/04/1984}

^{Street :
12300 SOUTH MAIN ST.}

^{TX 77035}

^{Town :
HOUSTON}

^{Postcode :
-}

^{Country :
United States}

^{DAVID LLEWELYN DAVIES F2522037N Agent}

^{Appointed on :
11/05/1999}

^{Street :
38 RIDOUT ROAD}

^{Town :
SINGAPORE}

^{Postcode :
248436}

^{Country :
Singapore}

^{PEK HOCK CHYE S0286199B Agent}

^{Appointed on :
01/09/1983}

^{Street :
132 TAI KENG GARDENS}

^{TAI KENG GARDEN}

^{Town :
SINGAPORE}

^{Postcode :
535413}

^{Country :
Singapore}

^{PEK HOCK CHYE S0286199B Director}

^{Appointed on :
14/02/1996}

^{Street :
132 TAI KENG GARDENS}

^{TAI KENG GARDEN}

^{Town :
SINGAPORE}

^{Postcode :
535413}

^{Country :
Singapore}

ACTIVITY (IES)

^{OIL EXPLORATION EQUIPMENT And SUPPLIES Code:
15260}

^{DERRICKS
Code: 6370}

^{OIL FIELD EQUIPMENT Code: 15270}

^{BASED ON ACRA'S RECORD AS AT
28/05/2007}

^{1) MANUFACTURING AND REPAIR OF OTHER OILFIELD
AND GASFIELD MACHINERY AND EQUIPMENT (EG DERRICKS);}

CHARGES

^{Date :
09/02/2000}

^{Comments :
CHARGE NO: 200000607}

^{AMOUNT SECURED: 0.00
AND ALL MONIES OWING}

^{CHARGEE(S): THE HONGKONG & SHANGHAI
BANKING CORPORATION LIMITED}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION
LIMITED}

^{SOUTHWEST BANK OF TEXAS}

SHAREHOLDERS(S)

No Shareholders In Our Database

SUBSIDIARY (IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity :
SUFFICIENT}

^{Payments :
SLOW}

^{Trend :
DOWNWARD}

^{Financial Situation : BAD}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Balance Sheet Date: 31/03/2006 31/03/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: BRANCH
BRANCH}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 202,262 389,873}

^{Total Fixed Assets}^{: 202,262 389,873}

^{Inventories: 1,766,437 1,706,011}

^{Receivables: 1,875,209 1,452,541}

^{Cash, Banks,
Securities: 115,079 161,660}

^{Other current assets: 75,870 95,016}

^{Total Current Assets}^{: 3,832,595 3,415,228}

^{TOTAL ASSETS: 4,034,857 3,805,101}

^{--- LIABILITIES ---}

^{Total Equity}^{: -10,435,759 -10,576,160}

^{L/T Liab. to ass.
comp: 14,224,908 14,280,713}

^{Total L/T Liabilities}^{: 14,224,908 14,280,713}

^{Trade Creditors: 193,056 48,040}

^{Prepay. & Def.
charges: 52,652 52,508}

^{Total short term Liab.}^{: 245,708 100,548}

^{TOTAL LIABILITIES: 14,470,616 14,381,261}

PROFIT & LOSS ACCOUNT

^{Net Sales 5,397,214 6,508,195}

^{Gross Profit: 1,938,794 1,919,296}

^{Result of ordinary
operations 104,772 175,792}

^{NET RESULT BEFORE TAX: -58,497 625,745}

^{Net income/loss year: -58,497 625,745}

^{Depreciation: 274,182 299,727}

^{Directors Emoluments: 269,098 258,735}

^{Purchases,Sces & Other
Goods: 3,458,420 4,588,899}

^{Wages and Salaries: 579,130 555,215}

^{Financial Income: 34 203}

RATIOS

^{31/03/2006 31/03/2005}

^{Net result /
Turnover(%): -0.01 0.10}

^{Stock / Turnover(%): 0.33 0.26}

^{Net Margin(%): -1.08 9.61}

^{Return on Equity(%): 0.56 -5.92}

^{Return on Assets(%): -1.45 16.44}

^{Net Working capital: 3586887.00 3314680.00}

^{Cash Ratio: 0.47 1.61}

^{Quick Ratio: 8.10 16.05}

^{Current ratio: 15.60 33.97}

^{Receivables Turnover: 125.08 80.35}

^{Leverage Ratio: -1.39 -1.36}

^{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

^{THE FINANCIAL CONDITION OF THE BRANCH WAS
DEEMED TO BE LIMITED IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS INADEQUATE WITH CAPITAL
DEFICIENCY OF S$10,435,759 (2005: -S$10,576,160). THIS COMPRISED OF:}

^{2006 2005}

^{S$
S$}

^{HEAD OFFICE ACCOUNT}

^{BALANCE AT BEGINNING OF YEAR (10,576,160) (11,201,905)}

^{EFFECTS OF ADOPTING FRS 39 198,898 -}

^{NET (LOSS)/PROFIT FOR THE YEAR (58,497) 625,745}

^{BALANCE AT END OF THE YEAR (10,435,759) (10,576,160)}

^LEVERAGE:

^{THE LEVERAGE RATIO REMAINED UNFAVOURABLE AT
-1.39 TIMES (2005: -1.36 TIMES), INDICATING THAT THE BRANCH'S TOTAL LIABILITIES
WERE SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS SURGED BY
3.02 TIMES, TOTALLING S$193,056 (2005: S$48,040).}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE BRANCH WAS
HEALTHY. BOTH THE QUICK AND CURRENT RATIOS WERE ADEQUATE AT 8.10 TIMES (2005:
16.05 TIMES) AND 15.60 TIMES (2005: 33.97 TIMES) RESPECTIVELY.}

^{THIS WAS IN TANDEM WITH THE NET WORKING
CAPITAL, WHICH REGISTERED HIGHER AT S$3,586,887 (2005: S$3,314,680).}

^{PROFITABILITY:}

^{REVENUE FOR FY2006 FELL BY 17.07%, AMOUNTING TO
S$5,397,214 (2005: S$6,508,195). NET LOSS IN FY2006 TOTALLED S$58,497 (2005:
S$625,745).}

^{THUS, NET MARGIN WAS ADVERSE AT -1.08% (2005:
9.61%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS WERE ANTICIPATED IN
VIEW OF THE CAPITAL DEFICIENCY AND IF TRADE RECEIVABLES WERE NON FORTHCOMING.}

^{AVERAGE COLLECTION PERIOD LENGTHENED TO 125
DAYS (2005: 80 DAYS).}

^{NOTES TO THE
FINANCIAL STATEMENTS}^:

^{CONTINGENT LIABILITY}

^{* UNSECURED CONTINGENT LIABILITY NOT PROVIDED
FOR IN THE FINANCIAL STATEMENTS}

^{- BANK GUARANTEE OF NIL (2005: S$33,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE UNITED STATES OF AMERICA AND REGISTERED AS A
FOREIGN BRANCH IN SINGAPORE
ON 25/09/1980 AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "TIW
INTERNATIONAL INC".}

^{AS AT 08/05/2007, SUBJECT HAS AN AUTHORISED
CAPITAL OD US$10.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) MANUFACTURING AND REPAIR OF OTHER OILFIELD
AND GASFIELD MACHINERY AND EQUIPMENT (EG DERRICKS); MANUFACTURING AND REPAIR OF
OILFIELD EQUIPMENT (EG LINER HANGER & DOWN HOLE TOOLS)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW,
SUBJECT'S PRINCIPAL ACTIVITIES ARE THE SALE,
RENTAL, INSTALLATION, REPAIR AND MAINTENANCE OF OILFIELD TOOLD AND EQUIPMENT IN
THE ASIA PACIFIC REGION. A SIGNIFICANT PORTION
OF THE OILFIELD TOOLS AND EQUIPMENT ARE PURCHASED FROM ITS HOLDING COMPANY AND
A RELATED COMPANY.}

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

^{SUBJECT IS LISTED IN THE SINGAPORE LOCAL
DIRECTORY UNDER THE CLASSIFICATION OF: OIL WELL EQUIPMENT AND SUPPLIES.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:}

^{* SALES OF OILFIELD EQUIPMENT}

^{* RENTAL AND SERVICES}

^{TRADE NAMES:}

^{* TIW; OILFIELD EQUIPMENTS (UNITED STATES)}

^{TERMS OF PAYMENT:}

^{* TRADE & OTHER RECEIVABLES: 30-90 DAYS
TERM}

^{* TRADE & OTHER PAYABLES : 30-90 DAYS TERM}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE
ON 05/06/2007.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{5000 LOYANG CRESCENT}

^LOYANG^{OFFSHORE SUPPLY BASE}

^SINGAPORE⁵⁰⁸⁹⁸⁸

^{DATE OF CHANGE OF ADDRESS: 30/10/1996}

^WEBSITE:

^{* NA}

^EMAIL:

^{* NA}

MANAGEMENT

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

^{1) STEPHEN RILEY PEARCE, AN AMERICAN}