MIRA INFORM REPORT

Report Date :

06.06.2007

IDENTIFICATION DETAILS

Name :	BRITISH-AMERICAN TOBACCO MARKETING (SINGAPORE) PRIVATE LIMITED
Registered Office :	^15 Senoko Loop, Singapore – 758168
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^04/10/1996
Com. Reg. No.:	^199607163D
Legal Form :	^Pte Ltd
Line of Business :	General Importers, Exporters, Buyers, Sellers, Distributors of and Dealers in Tobacco and or Tobacco related Products and all Other Materials Used in the Production.

RATING & COMMENTS

MIRA’s Rating :

A

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 :	Clear

Subject Company

BRITISH-AMERICAN TOBACCO MARKETING (SINGAPORE) PRIVATE LIMITED

Line Of Business 

GENERAL IMPORTERS, EXPORTERS, BUYERS, SELLERS, DISTRIBUTORS OF AND DEALERS IN TOBACCO AND OR TOBACCO RELATED PRODUCTS AND ALL OTHER MATERIALS USED IN THE PRODUCTION OF SUCH PRODUCTS GENERALLY IN THEIR PREPARED, MANUFACTURED, SEMI-MANUFACTURED AND RAW STATE.

Parent Company

BRITISH AMERICAN TOBACCO HOLDINGS (SINGAPORE) B.V.

(PERCENTAGE OF SHAREHOLDING: 90.90%)

Financial Elements

FY 2005

COMPANY

Sales : US$420,476,000

Networth : US$112,339,000

Paid-Up Capital : US$63,000

Net result : US$51,551,000

Net Margin(%) : 12.26

Return on Equity(%) : 45.89

Leverage Ratio : 0.99

COMPANY IDENTIFICATION

^{Subject Company : BRITISH-AMERICAN TOBACCO MARKETING (SINGAPORE) PRIVATE LIMITED}

^{Former Name : -}

^{Business Address: 15 SENOKO LOOP}

^{Town: SINGAPORE}

^{Postcode: 758168}

^{County: -}

^{Country: Singapore}

^{Telephone: 6338 8998}

^{Fax: 6338 8181}

^{ROC Number: 199607163D}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 04/10/1996}

^{Previous Legal Form: -}

^{Summary year : 31/12/2005}

^{Sales: 420,476,000}

^{Networth : 112,339,000}

^{Capital: -}

^{Paid-Up Capital: 63,000}

^{Employees: 13}

^{Net result : 51,551,000}

^{Share value: -}

^{AUDITOR: PRICEWATERHOUSECOOPERS}

^{BASED ON ACRA'S RECORD AS AT 04/06/2007}

^{NO. OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 110,000 SGD 80,330,000.00}

^{PAID-UP ORDINARY - SGD 80,330,000.00}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 04/10/1996}

PRINCIPAL(S)

^{KHONG MUN PEW S1301372A Director}

DIRECTOR(S)

^{DALE GREGORY MCLEAN E1038139 Director}

^{Appointed on : 01/01/2006}

^{Street : FLAT A, 43/F, THE SUMMIT}

^{41C STUBBS ROAD}

^Town:

^Postcode:

^{Country: Hong Kong}

^{KHONG MUN PEW S1301372A Director}

^{Appointed on : 06/11/2006}

^{Street : 69 JALAN MAS PUTEH}

^{PASIR PANJANG GARDENS}

^{Town: SINGAPORE}

^{Postcode: 128652}

^{Country: Singapore}

^{ONG YUEN LIN S2637077I Company Secretary}

^{Appointed on : 31/03/2006}

^{Street : 16 AMBER GARDENS}

^#06-04

^{AMBER PARK}

^{Town: SINGAPORE}

^{Postcode: 439961}

^{Country: Singapore}

^{NG SAY THAN S6920347G Director}

^{Appointed on : 06/11/2006}

^{Street : 148 YISHUN STREET 11}

^#04-103

^{Town: SINGAPORE}

^{Postcode: 760148}

^{Country: Singapore}

^{FOO CHEK KIANG S6943599H Director}

^{Appointed on : 31/03/2006}

^{Street : 29 TRANSIT ROAD}

^#02-10

^{FOREST HILLS CONDOMINIUM}

^{Town: SINGAPORE}

^{Postcode: 778905}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{ALASTAIR JAMES YOUNG 500299025}

^{ANG YAN CHENG ANNE S0112610E}

^{BOEY CHEE YIN S1098572B}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{TOBACCO Code:28}

^{BASED ON ACRA'S RECORD AS AT 04/06/2007}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); CARRYING ON THE BUSINESS OF DEALING IN TOBACCO & TOBACCO RELATED}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

No Bankers Information In Our Database

SHAREHOLDERS(S)

^{BRITISH AMERICAN TOBACCO HOLDINGS 100,000 Company}

^{Street : DE BOELELAAN 32}

^{1083 HJ}

^{Town: AMSTERDAM}

^Postcode:

^{Country: Netherlands}

^{BRITISH-AMERICAN TOBACCO 10,000 Company}

^{Street : 15 SENOKO LOOP}

^{Town: SINGAPORE}

^{Postcode: 758168}

^{Country: Singapore}

HOLDING COMPANY

^{BRITISH AMERICAN TOBACCO HOLDINGS UF22642H % : 90.90}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : LEVEL

Financial Situation: AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 23/08/2006}

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

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 38,000 38,000 -}

^{Tangible Fixed Assets: 135,000 297,000 439,000}

^{Investments - - 12,322,000}

^{Total Fixed Assets: 173,000 335,000 12,761,000}

^{Inventories: 54,479,000 60,883,000 58,784,000}

^{Receivables: 92,820,000 56,573,000 25,831,000}

^{Cash,Banks, Securitis: 3,843,000 6,874,000 28,818,000}

^{Other current assets: 72,619,000 36,579,000 4,990,000}

^{Total Current Assets: 223,761,000 160,909,000 118,423,000}

^{TOTAL ASSETS: 223,934,000 161,244,000 131,184,000}

^{--- LIABILITIES}

^{Equity capital: 63,000 63,000 57,000}

^{Reserves: 39,000 - -}

^{Profit & loss Account: 64,587,000 77,936,000 47,054,000}

^{Surplus equity: 47,650,000 47,650,000 -}

^{TOTAL EQUITY: 112,339,000 125,649,000 47,111,000}

^{L/T deffered taxes: 868,000 878,000 371,000}

^{Total L/T Liabilities: 868,000 878,000 371,000}

^{Trade Creditors: 99,580,000 6,627,000 51,746,000}

^{Prepay. & Def. charges: 4,606,000 9,897,000 19,593,000}

^{Provisions: 3,179,000 8,894,000 6,331,000}

^{Other Short term Liab.: 3,362,000 9,299,000 6,032,000}

^{Total short term Liab.: 110,727,000 34,717,000 83,702,000}

^{TOTAL LIABILITIES: 111,595,000 35,595,000 84,073,000}

PROFIT & LOSS ACCOUNT

^{Net Sales 420,476,000 289,187,000 238,164,000}

^{Result of ordinary operations - - 51,997,000}

^{NET RESULT BEFORE TAX: 54,213,000 85,609,000 52,679,000}

^{Tax : 2,662,000 8,727,000 5,889,000}

^{Net income/loss year: 51,551,000 76,882,000 46,790,000}

^{Interest Paid: 3,000 369,000 -}

^{Depreciation: 84,000 132,000 236,000}

^{Dividends: 64,900,000 46,000,000 76,000,000}

^{Directors Emoluments: 1,805,000 895,000 675,000}

^{Wages and Salaries: 3,729,000 4,938,000 3,428,000}

^{Financial Income: 349,000 145,000 201,000}

RATIOS

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

^{Turnover per employee: 32344307.69 22245153.85 18320307.69}

^{Net result / Turnover(%): 0.12 0.27 0.20}

^{Stock / Turnover(%): 0.13 0.21 0.25}

^{Net Margin(%): 12.26 26.59 19.65}

^{Return on Equity(%): 45.89 61.19 99.32}

^{Return on Assets(%): 23.02 47.68 35.67}

^{Dividends Coverage: 0.79 1.67 0.62}

^{Net Working capital: 113034000.00 126192000.00 34721000.00}

^{Cash Ratio: 0.03 0.20 0.34}

^{Quick Ratio: 0.87 1.83 0.65}

^{Current ratio: 2.02 4.63 1.41}

^{Receivables Turnover: 79.47 70.43 39.05}

^{Leverage Ratio: 0.99 0.28 1.78}

^{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 COMPANY WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH DECLINING BY 10.59% FROM US$125,649,000 IN FY 2004 TO US$112,339,000 IN FY 2005. THIS WAS DUE TO LOWER ACCUMULATED PROFIT OF US$64,587,000 (2004: US$77,936,000); A DECLINE OF 17.13% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 89.93% (2004: 19.09%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$99,580,000 (2004: US$6,627,000). THE BREAKDOWN IS AS FOLLOWS:}

^{-TRADE PAYABLES - 2005: US$25,390,000 (2004: US$3,830,000)}

^{-RELATED CORPORATIONS - 2005: US$74,190,000 (2004: US$2,797,000)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 0.28 TIMES TO 0.99 TIMES AS A RESULT OF A RISE IN TOTAL LIABILITIES AND A DECLINE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE, THOUGH DECLINING AS SEEN FROM THE DECLINE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 2.02 TIMES, DOWN FROM 4.63 TIMES AND QUICK RATIO FELL TO 0.87 TIMES FROM 1.83 TIMES IN FY 2004.}

^{NET WORKING CAPITAL FELL BY 10.43% FROM US$126,192,000 IN FY 2004 TO US$113,034,000.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 45.39% FROM US$289,187,000 IN FY 2004 TO US$420,476,000 BUT NET PROFIT DROPPED BY 32.95% TO US$51,551,000 (2004: US$76,882,000). THIS COULD BE DUE TO HIGHER RAW MATERIALS AND CONSUMBALES USED OF US$304,750,000 IN FY 2005 (2004: US$143,206,000). HENCE, NET MARGIN FELL TO 12.26% (2004: 26.59%).}

^{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 CONSIDERING THAT ITS INTEREST EXPENSES WERE LOW AT US$3,000 IN FY 2005 (2004: US$369,000).}

^{AVERAGE COLLECTION PERIOD HAS INCREASED FROM 70.43 DAYS TO 79.47 DAYS. A HIGHER AVERAGE COLLECTION PERIOD POSES GREATER RISK OF TURNING INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT SERVICING ABILITY MAY NOT BE AFFECTED IF TRADE RECEIVABLES ARE FORTHCOMING.}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-CLUB MEMBERSHIP - 2005: US$38,000 (2004: US$38,000)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

SHARE CAPITAL AND SHARE PREMIUM

^{THE ISSUED ORDINARY SHARE CAPITAL WAS INCREASED FROM US$57,000 TO US$63,000 ON 29/10/2004 BY WAY OF A ISSUE OF 10,000 ORDINARY SHARES OF US$0.57 EACH AT A PREMIUM OF US$4,765 PER SHARE, FOR THE PURPOSE OF CAPITALISING A PORTION OF ITS PAYABLES TO A RELATED COMPANY. THE NEWLY ISSUED SHARES RANK PARI PASSU IN ALL RESPECTS WITH THE PREVIOUSLY ISSUED SHARES.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 04/10/1996 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "BRITISH-AMERICAN TOBACCO MARKETING (SINGAPORE) PRIVATE LIMITED".}

^{AS AT 04/06/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 110,000 SHARES OF A VALUE OF S$80,330,000.}

^{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 & EXPORTERS); CARRYING ON THE BUSINESS OF DEALING IN TOBACCO & TOBACCO RELATED PRODUCTS}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF GENERAL IMPORTERS, EXPORTERS, BUYERS, SELLERS, DISTRIBUTORS OF AND DEALERS IN TOBACCO AND OR TOBACCO RELATED PRODUCTS AND ALL OTHER MATERIALS USED IN THE PRODUCTION OF SUCH PRODUCTS GENERALLY IN THEIR PREPARED, MANUFACTURED, SEMI-MANUFACTURED AND RAW STATE.}

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

^{BACKGROUND OF BRITISH AMERICAN TOBACCO GROUP:}

^{* BRITISH AMERICAN TOBACCO IS THE WORLD'S MOST INTERNATIONAL TOBACCO GROUP, OPERATING IN MORE COUNTRIES THAN ANY OTHER.}

^{* DO BUSINESS IN 180 COUNTRIES, WITH A GLOBAL MARKET SHARE OF 15.1 PERCENT.}

^{* THE GROUP HAS OVER 80 FACTORIES IN 64 COUNTRIES, PROCESSING SOME 660 MILLION KILOS OF LEAF AND PRODUCING MORE THAN 800 BILLION CIGARETTES A YEAR.}

^{* THE GROUP EMPLOYS MORE THAN 80,000 PEOPLE WORLDWIDE.}

^{* LEADING INTERNATIONAL BRANDS INCLUDE LUCKY STRIKE, KENT, DUNHILL, AND PALL MALL; ROTHMANS, KOOL, BENSON & HEDGES, STATE EXPRESS 555, PETER STUYVESANT, VICEROY AND JOHN PLAYER GOLD LEAF ARE ALSO PART OF ITS INTERNATIONAL BRAND PORTFOLIO.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* TRADING OF TOBACCO PRODUCTS AND CIGARS}

^BRANDS:

^{* LUCKY STRIKE}

^{* KENT}

^{* DUNHILL}

^{* PALL MALL}

^{* ROTHMANS}

^{* KOOL}

^{* BENSON & HEDGES}

^{* STATE EXPRESS 555}

^{* PETER STUYVESANT}

^{* VICEROY}

^{* JOHN PLAYER}

^{* GOLD LEAF}

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

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 06/06/2007.}

^{THE COMPANY'S IMMEDIATE HOLDING CORRORATION IS BRITISH AMERICAN TOBACCO HOLDINGS (SINGAPORE) B.V, INCORPORATED IN THE NETHERLANDS. THE ULTIMATE HOLDING CORPORATION IS BRITISH AMERICAN TOBACCO P.L.C, INCORPORATED IN THE UNITED KINGDOM.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: 13; 2003: 23)}

^{* GROUP - 2005: (2004: )}

^{REGISTERED AND BUSINESS ADDRESS:}

^{15 SENOKO LOOP}

^{SINGAPORE 758168}

^{- DATE OF CHANGE OF ADDRESS: 18/02/2000}

^WEBSITE:

^{http://www.bat.com}

^EMAIL:

^-

MANAGEMENT

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

^{1) DALE GREGORY MCLEAN, AN AUSTRALIAN}

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

^{BRITISH-AMERICAN TOBACCO (SINGAPORE) PRIVATE LIMITED}

^{2) KHONG MUN PEW, A SINGAPOREAN}

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

^{BRITISH-AMERICAN TOBACCO (SINGAPORE) PRIVATE LIMITED}

^{3) NG SAY THAN, A SINGAPOREAN}

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

^{BRITISH-AMERICAN TOBACCO (SINGAPORE) PRIVATE LIMITED}

^{4) FOO CHEK KIANG, A SINGAPOREAN}

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

^{BRITISH-AMERICAN TOBACCO (SINGAPORE) PRIVATE LIMITED}

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

DOMESTIC WHOLESALE TRADE IN 4Q 2006 HAS DECLINED BY 6.9%. EXCLUDING PETROLEUM, DOMESTIC SALES REMAINED AT SIMILAR LEVEL COMPARED TO THE PREVIOUS QUARTER.

GENERAL WHOLESALE TRADE POSTED THE LARGEST SALES DECREASE OF 16.6%, FOLLOWED BY THE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS OF 15.7% AND HOUSEHOLD EQUIPMENT AND FURNITURE OF 13.2%.

SECTORS OF INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS REGISTERED GROWTHS OF 17.0% AND 12.3%, RESPECTIVELY.

FOREIGN WHOLESALE TRADE INDEX

ON A QUARTER-TO-QUARTER BASIS, OVERALL FOREIGN WHOLESALE TRADE CONTRACTED BY 7.9% IN 4Q 2006 AFTER TWO QUARTERS OF POSITIVE GROWTH. FOREIGN SALES WENT DOWN BY 1.6%, EXCLUDING PETROLEUM.

THE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS AND ELECTRONIC COMPONENTS MARKED LOWER OVERSEAS SALE OF 14.2% AND 11.6% RESPECTIVELY IN 4Q 2006 OVER 3Q 2006.

RETAIL TRADE

IN GENERAL, RETAIL SALES GREW BY 7.9% IN 4Q 2006, UP FROM THE 5.2% IN THE PREVIOUS QUARTER. THIS BROUGHT FULL YEAR GROWTH FOR 2006 TO 6.9%, DOWN FROM 9.0% IN 2005. EXCLUDING MOTOR VEHICLE SALES, RETAIL SALES ROSE 4.1%, SLOWING FROM THE 7.2% GAIN IN THE PREVIOUS YEAR.

MOST RETAIL SECTORS REPORTED BRISK BUSINESS IN DEC. 2006. SALES OF RECREATIONAL GOODS, DEPARTMENT STORES, WEARING APPAREL AND FOOTWEAR, FURNITURE AND HOUSEHOLD EQUIPMENT, WATCHES AND JEWELLERY CLIMBED BY 36.6% TO 44.2% IN DEC. 2006 COMPARED TO THE PREVIOUS MONTH.

LIKEWISE, RETAILERS OF OPTICAL GOODS AND BOOKS, TELECOMMUNICATIONS APPARATUS AND COMPUTERS, FOOD AND BEVERAGES, MEDICAL GOODS AND TOILETRIES AND SUPERMARKETS ENJOYED GROWTH BETWEEN 12.7% TO 26.0%.

OUTLOOK

FOR WHOLESALE TRADE, A NET WEIGHTED BALANCE OF 11% OF FIRMS ANTICIPATES BUSINESS TO BE LESS BRISK FOR COMING MONTHS. THOSE DEALING IN JEWELLERY AND WATCHES, INDUSTRIAL MACHINERY AND EQUIPMENT, TELECOMMUNICATIONS EQUIPMENT AND ELECTRONIC COMPONENTS ARE AMONG THOSE WHO FORESEE SLOWER BUSINESS IN THE COMING MONTHS.

FOR RETAILERS, A NET WEIGHTED BALANCE OF 8%, FORECAST THE BUSINESS CONDITIONS TO IMPROVE IN THE NEXT SIX MONTHS. DEPARTMENT STORES OWNERS AND RETAILERS OF FURNITURE AND FURNISHINGS ARE OPTIMISTIC ABOUT THE BUSINESS PROSPECTS.

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