MIRA INFORM REPORT

Report Date :

19.06.2007

IDENTIFICATION DETAILS

Name :	DOW CHEMICAL PACIFIC (SINGAPORE) PRIVATE LIMITED
Registered Office :	^260 Orchard Road, #18-01^, The Heeren, Singapore – 238855
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^09/11/1992
Com. Reg. No.:	^199206043M
Legal Form :	^Pte Ltd
Line of Business :	Dealers and Distributors of Industrial Chemicals, Plastics and Other Chemical Products, as well as to provide Regional Treasury and other Management Services

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

DOW CHEMICAL PACIFIC (SINGAPORE) PRIVATE LIMITED

Line Of Business 

DEALERS AND DISTRIBUTORS OF INDUSTRIAL CHEMICALS, PLASTICS AND OTHER CHEMICAL PRODUCTS, AS WELL AS TO PROVIDE REGIONAL TREASURY AND OTHER MANAGEMENT SERVICES

Parent Company

THE DOW CHEMICAL COMPANY

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

COMPANY

Sales : US$397,295,426

Networth : US$57,570,102

Paid-Up Capital : US$48,472,280

Net result : US$15,301,110

Net Margin(%) : 3.85

Return on Equity(%) : 26.58

Leverage Ratio : 8.59

COMPANY IDENTIFICATION

^{Subject Company : DOW CHEMICAL PACIFIC (SINGAPORE) PRIVATE LIMITED}

^{Former Name : DOW SERVICES SINGAPORE PTE LTD}

^{Business Address: 260 ORCHARD ROAD}

^#18-01

^{THE HEEREN}

^{Town: SINGAPORE}

^{Postcode: 238855}

^{County: -}

^{Country: Singapore}

^{Telephone: 6835 3773}

^{Fax: 6834 0315}

^{ROC Number: 199206043M}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{DOW SERVICES SINGAPORE PTE LTD}

^{DATE OF CHANGE OF NAME: 13/11/1997}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 09/11/1992}

^{Previous Legal Form: -}

^{Summary year : 31/12/2005}

^{Sales: 397,295,426}

^{Networth : 57,570,102}

^{Capital: 48,902,355}

^{Paid-Up Capital: 48,472,280}

^{Employees: 189}

^{Net result : 15,301,110}

^{Share value: -}

^{AUDITOR : DELOITTE & TOUCHE}

^{BASED ON ACRA'S RECORD AS AT 14/06/2007}

^{NO.OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 79,296,436 SGD 79,296,436}

^{PAID-UP ORDINARY - SGD 79,296,436}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 09/11/1992}

PRINCIPAL(S)

^{CHRIS NG CHEE KHIANG S1245188A Director}

DIRECTOR(S)

^{LOW MEI MEI MAUREEN S1728235B Company Secretary}

^{Appointed on : 31/01/2002}

^{Street : 26 SIMEI STREET 1}

^#07-01

^{MELVILLE PARK}

^{Town: SINGAPORE}

^{Postcode: 529947}

^{Country: Singapore}

^{CHEUNG MAN SHAN LAWRENCE S2566808A Director}

^{Appointed on : 11/06/2004}

^{Street : 132 TANJONG RHU ROAD}

^#13-05

^{Town: SINGAPORE}

^{Postcode: 436919}

^{Country: Singapore}

^{TAN SU-MIN YVONNE S7003992C Director}

^{Appointed on : 12/07/2004}

^{Street : 1 CHATSWORTH ROAD}

^#08-21

^{ONE CHATSWORTH}

^{Town: SINGAPORE}

^{Postcode: 249745}

^{Country: Singapore}

^{CHRIS NG CHEE KHIANG S1245188A Director}

^{Appointed on : 01/05/2006}

^{Street : 59 HOLLAND GROVE DRIVE}

^{HOLLAND GROVE PARK}

^{Town: SINGAPORE}

^{Postcode: 278887}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{HAHN CHARLES J 151016871}

^{CHAN WAI HAH S2571421J}

^{REINHARD JOAO PEDRO SCE332620}

^{CEVALLOS GASTON DM64.238}

^{BRINK PAUL D Z5572922}

^{NEUNUEBEL EDWARD ROBERT Z6780758}

^{GEOFFERY E MERSZEI BC044579}

^{SEAH CHIN LEONG PETER S0358524G}

^{GARY L WHITLOCK 26159097}

^{DAVID RUSELL FORD 023144386}

^{LOH SHAI CHOON 4707091051}

^{DAVID JOHN KUCHENBECKER 700145964}

^{ONG ENG KEANG S2618857A}

^{BHARAT DAMODAR VASANI G244401}

^{EDWARD ROBERT NEUNUEBEL 700834729}

^{PETER M.JENNINGS 158572977}

ACTIVITY(IES)

^{CHEMICALS - RETAIL Code:3990}

^{MANAGEMENT CONSULTANTS Code:13355}

^{BASED ON ACRA'S RECORD AS AT 14/06/2007}

^{1) FINANCE COMPANIES (WITH DEPOSIT TAKING FUNCTIONS); FINANCIAL INSTITUTIONS, FINANCIAL SERVICES NEC}

^{ACTIVITIES STATED IN FINANCIAL STATEMENTS:}

^{DEALERS AND DISTRIBUTORS OF INDUSTRIAL CHEMICALS, PLASTICS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{ABN AMRO BANK N.V.}

^{J P MORGAN CHASE BANK}

ASSOCIATED COMPANY(IES)

^{SAL PETROCHEMICAL (ZHANGJIAGANG)}

^China

SHAREHOLDERS(S)

^{THE DOW CHEMICAL COMPANY 79,296,436 Company}

^{Street : 2030 WILLARD H}

^{DOW CENTRE}

^{MIDLAND MICHIGAN}

^{Town: USA}

^{Postcode: 48674}

^{Country: United States}

FORMER SHAREHOLDER(S)

^{SUSAN MARY DE SILVA 1}

^{CHIDAMBARAM CHANDRASEGAR 1}

HOLDING COMPANY

^{THE DOW CHEMICAL COMPANY UF10250K % : 100}

SUBSIDIARY(IES)

^{DOW FINANCIAL HOLDINGS SINGAPORE PTE LTD}

Singapore

^{S. H. A. HOLDINGS PTE LTD}

Singapore

^{G. Z. HOLDINGS PTE LTD}

Singapore

^{DOW CHEMICAL (GUANGZHOU) CO LTD}

^China

^{DOW CHEMICAL INTERNATIONAL PRIVATE LIMITED}

India

^{DOW CHEMICAL (MALAYSIA) SDN BHD}

Malaysia

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : DOWNWARD

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)}

^{Date Account Lodged: 31/08/2006}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 4,864,194 6,910,909}

^{Investments 52,298,957 48,124,035}

^{Total Fixed Assets: 57,163,151 55,034,944}

^{Inventories: 46,794,884 29,059,675}

^{Receivables: 72,620,052 66,511,173}

^{Cash,Banks, Securitis: 1,379,029 2,728,441}

^{Other current assets: 374,412,151 308,685,452}

^{Total Current Assets: 495,206,116 406,984,741}

^{TOTAL ASSETS: 552,369,267 462,019,685}

^{--- LIABILITIES}

^{Equity capital: 48,472,280 48,472,280}

^{Profit & loss Account: 9,097,822 -9,425,500}

^{TOTAL EQUITY: 57,570,102 39,046,780}

^{Other long term Liab.: 28,167,632 28,167,632}

^{Total L/T Liabilities: 28,167,632 28,167,632}

^{Trade Creditors: 78,565,223 61,703,078}

^{Prepay. & Def. charges: 3,289,294 4,068,340}

^{Due to Bank: - 1,387,488}

^{Other Short term Liab.: 384,777,016 327,646,367}

^{Total short term Liab.: 466,631,533 394,805,273}

^{TOTAL LIABILITIES: 494,799,165 422,972,905}

PROFIT & LOSS ACCOUNT

^{Net Sales 397,295,426 428,657,710}

^{Gross Profit: 47,407,049 49,235,638}

^{Result of ordinary operations 8,378,427 13,628,528}

^{NET RESULT BEFORE TAX: 16,099,173 23,853,201}

^{Tax : 798,063 968,939}

^{Net income/loss year: 15,301,110 22,884,262}

^{Interest Paid: 5,253,267 1,819,381}

^{Depreciation: 528,839 664,380}

^{Directors Emoluments: 1,490,950 1,642,487}

^{Purchases,Sces & Other Goods: 349,888,377 379,422,072}

^{Wages and Salaries: 20,278,673 16,501,494}

^{Financial Income: 7,263,028 1,828,654}

RATIOS

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

^{Turnover per employee: 2102092.20 2268030.21}

^{Net result / Turnover(%): 0.04 0.05}

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

^{Stock / Turnover(%): 0.12 0.07}

^{Net Margin(%): 3.85 5.34}

^{Return on Equity(%): 26.58 58.61}

^{Return on Assets(%): 2.77 4.95}

^{Net Working capital: 28574583.00 12179468.00}

^{Cash Ratio: 0.00 0.01}

^{Quick Ratio: 0.16 0.18}

^{Current ratio: 1.06 1.03}

^{Receivables Turnover: 65.80 55.86}

^{Leverage Ratio: 8.59 10.83}

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 47.44% FROM US$39,046,780 IN FY 2004 TO US$57,570,102 IN FY 2005. THIS WAS DUE TO ACCUMULATED PROFIT OF US$9,097,822 (2004: US$-9,425,500); A RISE OF 1.97 TIMES FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER SHORT-TERM LIABILITIES WHICH MADE UP 82.46% (2004: 82.99) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$384,777,016 (2004: US$327,646,367). THE BREAKDOWN IS AS FOLLOWS:}

^{LOAN FROM:}

^{-RELATED COMPANIES - 2005: US$380,808,286 (2004: US$324,883,519)}

^{-SUBSIDIARY - 2005: US$1,070,870 (2004: US$535,967)}

^{INTEREST PAYABLE TO:}

^{-RELATED COMPANIES - 2005: US$312,872 (2004: US$307,121)}

^{-SUBSIDIARY - 2005: US$3,810 (2004: US$792)}

^{UNREALISED LOSS ON OUTSTANDING FORWARD FOREIGN EXCHANGE CONTRACTS}

^{- 2005: US$1,251,377 (2004: US$909,844)}

^OTHERS

^{- 2005: US$1,329,891 (2004: US$1,009,124)}

^{IN THE LONG-TERM, SUBJECT WAS WHOLLY FINANCED BY OTHER LONG-TERM LIABILITIES AND AMOUNTED TO US$28,167,632 (2004: US$28,167,632). THE BREAKDOWN IS AS FOLLOWS:}

^{-LOAN FROM HOLDING COMPANY - 2005: US$28,167,632 (2004: US$28,167,632)}

^{AMOUNT DUE TO BANKS OF - (2004: US$1,387,488) CONSISTED OF:}

^{-BANK OVERDRAFTS - 2005: - (2004: US$1,387,488)}

^{IN ALL, LEVERAGE RATIO FELL FROM 10.83 TIMES TO 8.59 TIMES AS A RESULT OF A GREATER RELATIVE RISE IN TOTAL EQUITY THAN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 1.06 TIMES, UP FROM 1.03 TIMES AND QUICK RATIO FELL TO 0.16 TIMES FROM 0.18 TIMES IN FY 2004.}

^{NET WORKING CAPITAL IMPROVED BY 1.35 TIMES FROM US$12,179,468 IN FY 2004 TO US$28,574,583.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-CASH AT BANK - 2005: US$1,376,027 (2004: US$2,724,769)}

^{-CASH ON HAND - 2005: US$ 3,002 (2004: US$ 3,672)}

^{PROFITABILITY:}

^{REVENUE POSTED A DECLINE OF 7.32% FROM US$428,657,710 IN FY 2004 TO US$397,295,426 AND NET PROFIT DROPPED BY 33.14% TO US$15,301,110 (2004: US$22,884,262). HENCE, NET MARGIN FELL TO 3.85% (2004: 5.34%).}

^REVENUE:

^{-SALE OF GOODS - 2005: US$381,299,986 (2004: US$410,770,010)}

^{-RENDERING OF SERVICES - 2005: US$15,995,440 (2004: US$17,887,700)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{LOAN FROM HOLDING COMPANY}

^{THE LOAN DUE FROM HOLDING COMPANY IS UNSECURED, INTEREST-FREE AND IS NOT EXPECTED TO BE REPAID WITHIN THE NEXT TWELVE MONTHS.}

^{BANK OVERDRAFTS}

^{THE BANK OVERDRAFTS WERE INTEREST BEARING AT RATES BETWEEN 5.25% TO 7.25% (2004: 4.0% TO 5.5%) PER ANNUM AND WERE FULLY REPAID DURING 2005.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 09/11/1992 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "DOW SERVICES SINGAPORE PTE LTD".}

^{SUBSEQUENTLY, ON 13/11/1997, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "DOW CHEMICAL PACIFIC (SINGAPORE) PRIVATE LIMITED".}

^{AS AT 14/06/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 79,296,436 SHARES OF A VALUE OF S$79,296,436.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) FINANCE COMPANIES (WITH DEPOSIT TAKING FUNCTIONS); FINANCIAL INSTITUTIONS, FINANCIAL SERVICES NEC}

^{2) WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS NEC; MARKET AND DISTRIBUTE INDUSTRIAL CHEMICALS, PLASTICS AND OTHER PRODUCTS}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF DEALERS AND DISTRIBUTORS OF INDUSTRIAL CHEMICALS, PLASTICS AND OTHER CHEMICAL PRODUCTS, AS WELL AS TO PROVIDE REGIONAL TREASURY AND OTHER MANAGEMENT SERVICES.}

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

^{BACKGROUND OF DOW GROUP:}

^{DOW IS A DIVERSIFIED CHEMICAL COMPANY THAT HARNESSES THE POWER OF INNOVATION, SCIENCE AND TECHNOLOGY TO CONSTANTLY IMPROVE WHAT IS ESSENTIAL TO HUMAN PROGRESS. THE COMPANY OFFERS A BROAD RANGE OF PRODUCTS AND SERVICES TO CUSTOMERS IN MORE THAN 175 COUNTRIES, HELPIN THEM TO PROVIDE EVERYTHING FROM FRESH WATER, FOOD AND PHARMACEUTICALS TO PAINTS, PACKAGING AND PERSONAL CARE PRODUCTS.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{THE HEEREN BUSINESS ADDRESS:}

^{IT IS A KEY SUPPORT LOCATION FOR DOW CHEMICAL'S PLASTICS BUSINESS IN THE ASIA-PACIFIC REGION, PERFORMING SALES AND MARKETING, FINANCE, BUSINESS COMMUNICATIONS, GLOBAL TRADING AND SUPPLY CHAIN MANAGEMENT. ADDITIONAL PORTFOLIOS INCLUDE DOW AGROSCIENCES, HYDROCARBONS AND ENERGY, AND CHEMICALS, INTERMEDIATES AND PERFORMANCE CHEMICALS.}

^{THE SUBJECT PERFORMS A HOST OF BUSINESS SUPPORT FUNCTIONS, RANGING FROM GENERAL ADMINISTRATIVE SERVICES AND HUMAN RESOURCE SPECIALISTS TO SUPPLY CHAIN MANAGEMENT, LEGAL AND FINANCIAL SERVICES. THE OFFICE SERVES AS A FINANCE AND TREASURY CENTER FOR SINGAPORE, AND ITS SCOPE OF FINANCE RELATED ACTIVITIES COVERS TREASURY, INCLUDING CREDIT ADMINISTRATION, FINANCIAL RISK MANAGEMENT, CASH MANAGEMENT AND SHORT TERM FUNDING, ACCOUNTING SERVICES, CORPORATE INTERNAL AUDITING, AND BUSINESS FINANCE.}

^{TUAS SOUTH ST 3 BUSINESS ADDRESS:}

^{THE DOW SINGAPORE DEVELOPMENT CENTER (SDC) SUPPORTS THE DEVELOPMENT OF PROCESS TECHNOLOGIES AND PLASTIC PRODUCTS THROUGHOUT ASIA-PACIFIC. IT HOUSES A FABRICATION LABORATORY, WITH THE CAPABILITY OF SIMULATING ACTUAL PRODUCTION CONDITION, AS WELL AS A PHYSICAL AND ANALYTICAL TESTING LABORATORY THAT UTILIZES THE MOST SOPHISTICATED POLYMER CHARACTERIZATION AND ANALYSIS INSTRUMENTS. IT ALSO PROVIDES RESEARCH AND DEVELOPMENT AND TECHNICAL SERVICE THROUGHOUT THE REGION AND OPERATE PRIMARILY AS AN R&D LAB FOR A WIDE VARIETY OF DOW PRODUCT LINES, INCLUDING BIOCIDES, WATER-SOLUBLE POLYMERS, VINYL COATINGS, TRITONS, UCARSOL™, UCON™ FLUIDS, ADHESIVES, PAINS AND TEXTILE EMULSIONS.}

^{PRODUCTS DEALINGS:}

^PLASTICS

^{BASE AND SPECIALTY PLASTICS}

^{* ARTIFICIAL TURF SOLUTIONS}

^{* DOW WIRE AND CABLE}

^{* ENGINEERING THERMOPLASTICS}

^{* FILM SUBSTRATES}

^{* FOOTWEAR}

^{* FIBER SOLUTIONS}

^{* PERFORMANCE PLASTOMERS AND ELASTOMERS}

^{* POLYETHYLENE}

^{* POLYPROPYLENE}

^{* POLYSTYRENE}

^{* SARAN PVDC}

^{* SPECIALTY COPOLYMERS}

^{* SYNTHETIC RUBEBR AND NORDEL}

^{DOW AUTOMOTIVE}

^{DOW EPOXY}

^{* FUNCTIONAL MONOMERS}

^{ELECTRONICS - GROWTH BUSINESS}

^{* CYCLOTENE ADVANCED ELECTRONIC RESINS}

^{* SILK SEMICONDUCTOR DIELECTRIC RESINS}

^{FABRICATED PRODUCTS}

^{* CRAFT AND FLORAL PRODUCTS}

^{* ENGINEERED ADHESIVE FILMS}

^{* ENGINEERED FILMS AND LAMINATES}

^{IMMOTUS NOISE CONTROL}

^{FABRICATED PRODUCTS}

^{* MEDICAL FILMS}

^{* PERFORMANCE FOAMS}

^{* PROCITE POLYSTYRENE WINDOW FILM}

^{* STYROFOAM BRAND INSULATION}

^{* ZETABON COATED METAL CABLE ARMOR}

^POLYURETHANE

^{* DOW POLYURETHANE CARPET BACKINGS}

^{* POLYURETHANES}

^{SYNTEGRA POLYURETHANE DISPERSION}

^{* VORANOL VORACTIV POLYOLS}

^{POLYURETHANE SYSTEMS}

^CHEMICAL

^{ACRYLICS, SOLVENTS AND INTERMEDIATES}

^{* ACRYLIC MONOMERS}

^{* ACRYLATE MONOMERS}

^{* OXYGENATED SOLVENTS}

^{* VINYL ACETATE MONOMER}

^{* ALKYL ALKANOLAMINES}

^{* DOW GAS TREATING PRODUCTS AND SERVICES}

^{* ETHANOLAMINES}

^{* ETHYLENEAMINES}

^{* EHTYLENE OXIDE (EO)}

^{* ETHYLENE GLYCOLS (EG)}

^{* ISOPROPANOLAMINES}

^{BASIC CHEMICAL PRODUCTS}

^{* CALCIUM CHLORIDE}

^{* CAUSTIC SODA}

^{* GLOBAL CHLORINATED ORGANICS}

^{DOW LATEX}

^{* ARTIFICIAL TURF SOLUTIONS}

^{* EMULSION POLYMERS}

^{* UCAR EMULSION SYSTEMS}

^{INDUSTRIAL CHEMICALS}

^{* AMBITROL INDUSTRIAL COOLANTS}

^{* AROMATICS CO-PRODUCTS}

^{* BIOCIDES}

^{* CARBOWAX PEGS AND MPEGS}

^{* COOLANTS}

^{* HEAT TRANSFER FLUIDS}

^{* POLYGLYCOLS}

^{* PPGS AND COPOLYMERS}

^{* SURFACTANTS}

^{* SYNALOX FLUIDS}

^{* UCAR AIRCRAFT DEICING FLUIDS}

^{* UCON FLUIDS AND LUBRICANTS}

^{* VERSENE CHELATING AGENTS}

^{PERFORMANCE CHEMICALS}

^{* CUSTOM AND FINE CHEMICALS}

^{* ANGUS CHEMICAL COMPANY}

^{* HALTERMANN PRODUCTS}

^{* DOW HALTERMANN CUSTOM PROCESSING}

^{* DOWPHARMA}

^{* HAMSPHIRE CHEMICAL CORPORATION}

^{PROPYLENE OXIDE AND PROPYLENE GLYCOLS}

^{* PROPYLENE GLYCOL}

^{* PROPYLENE OXIDE}

^{SPECIALTY POLYMERS}

^{* DIVINYLBENZENE (DVB)}

^{* DOW LATEX POWDERS}

^{* LIQUID SEPARATIONS}

^{* QUAT 188 CATIONIC MONOMER}

^{* UCAR SOLUTION VINYL RESINS}

^{* SURFACE-SIZING PPOLYMERS}

^{* VINYLBENZYL CHOLORIDE (VBC)}

^{WATER SOLUBLE POLYMERS}

^{* AMERCHOL CORPORATION}

^{* CELLOSIZE HYDROXYETHYL CELLULOSE}

^{* ETHOCEL ETHYLCELLULOSE POLYMERS}

^{* METHOCEL CELLULOSE ETHERS}

^{* PLOYOX WATER-SOLUBLE RESINS}

^{SUBJECT IS A MEMBER OF FOLLOWING ENTITIES:}

^{* AMERICAN CHAMBER OF COMMERCE}

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^{* SINGAPORE PLASTIC INDUSTRY ASSOCIATION}

^{* SINGAPORE CHEMICAL INDUSTRY COUNCIL}

^{NEWS: CKE RESTAURANTS HAVE AN APPETITE FOR OMEGA-9 CANOLA OIL}

^"EXTRACTS"

^{-SOURCE: DOW WEBSITE}

^{DATE: 06/06/2007}

^{INDIANAPOLIS, IN - CKE RESTAURANTS, INC. ANNOUNCED TODAY THAT ITS CARL'S JR. AND HARDEE'S RESTAURANT CHAINS ARE CONVERTING TO OMEGA-9 CANOLA OIL FROM DOW AGROSCIENCES. THIS CONTINUES THE IMPORTANT TREND OF FOOD COMPANIES CONVERTING TO ZERO TRANS FAT CANOLA OIL. THIS "NEXT GENERATION" CANOLA OIL HAS THE LOWEST SATURATED FAT LEVELS AMONG THE NEW TRANS FAT ALTERNATIVES AND A HIGH LEVEL OF HEART-HEALTHY (OMEGA-9) MONOUNSATURATED FAT, ALLOWING THE CKE RESTAURANTS TO ELIMINATE TRANS FAT AND REDUCE SATURATED FAT IN THEIR FRIED MENU ITEMS.}

^{THE CONVERSION WILL BE COMPLETED BY JANUARY 2008 IN ALL FRANCHISED AN COMPANY-OPERATED CARL'S, JR. AND HARDEE'S RESTAURANTS.}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 19/06/2007.}

^{THE COMPANY IS A SUBSIDIARY OF THE DOW CHEMICAL COMPANY, INCORPORATED IN THE UNITED STATES OF AMERICA, WHICH IS ALSO THE COMPANY'S ULTIMATE HOLDING COMPANY.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: NOT AVAILABLE; 2003: NOT AVAILABLE; 2002 : 189 (2001 : 187)}

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

^{REGISTERED AND BUSINESS ADDRESS:}

^{260 ORCHARD ROAD}

^{#18-01 THE HEEREN}

^{SINGAPORE 238855}

^{- RENTED PREMISE}

^{- OWNED BY SWEE CHENG HOLDINGS PTE LTD}

^{- DATE OF CHANGE OF ADDRESS: 02/05/1997}

^{- REGIONAL BUSINESS CENTER}

^{OTHER BUSINESS ADDRESS:}

^{24 TUAS SOUTH ST 3}

^{SINGAPORE 638025}

^{- DOW SINGAPORE DEVELOPMENT CENTER}

^{- DOW BIOCIDES CUSTOMER APPLICATION CENTER}

^{- ANGUS CHEMICAL COMPANY CUSTOMER APPLICATION CENTER}

^WEBSITE:

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

^EMAIL:

^{dowcig@dow.com}

MANAGEMENT

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

^{1) TAN SU-MIN YVONNE, A SINGAPOREAN}

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

^{UNION POLYMERS SDN BHD}

^{2) CHEUNG MAN SHAN LAWRENCE, A SINGAPOREAN}

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

^{UNION CARBIDE CUSTOMER SERVICES PTE LTD}

^{3) CHRIS NG CHEE KHIANG, A SINGAPOREAN}

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

^{UNION POLYMERS SDN BHD.}

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 23006, 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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