MIRA INFORM REPORT

Report Date :

22.03.2007

IDENTIFICATION DETAILS

Name :	SINGAPORE TECHNOLOGIES AEROSPACE LTD
Registered Office :	^540 Airport Road, Paya Lebar, Singapore – 539938
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^24/12/1981
Com. Reg. No.:	^198105870H
Legal Form :	^Pub Ltd Co
Line of Business :	Investment Holding and Provision of Engineering, Marketing and Engineering Support Services.

RATING & COMMENTS

MIRA’s Rating :

Aaa

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

Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear

Subject Company

SINGAPORE TECHNOLOGIES AEROSPACE LTD

Line Of Business 

INVESTMENT HOLDING AND PROVISION OF ENGINEERING, MARKETING AND ENGINEERING SUPPORT SERVICES.

Parent Company

SINGAPORE TECHNOLOGIES ENGINEERING LTD

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY2005

CONSOLIDATED

Sales : S$1,235,911,000

Networth : S$ 497,983,000

Paid-Up Capital : -

Net result : S$ 210,294,000

Net Margin(%) : 17.02

Return on Equity(%) : 42.23

Leverage Ratio : 1.82 TIMES

Rating

Credit Rating : Sing $ 50000001

COMPANY IDENTIFICATION

^{Subject Company : SINGAPORE TECHNOLOGIES AEROSPACE LTD}

^{Former Name : SINGAPORE AEROSPACE LTD}

^{Business Address : 540 AIRPORT ROAD}

^{PAYA LEBAR}

^{Town : SINGAPORE}

^{Postcode : 539938}

^{County : -}

^{Country : Singapore}

^{Telephone : 6287 1111}

^{Fax : 6280 9713}

^{6280 8213}

^{ROC Number : 198105870H}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{SINGAPORE AEROSPACE LTD (DATE OF CHANGE OF NAME : 31/03/1995)}

^{SINGAPORE AIRCRAFT INDUSTRIES PTE LTD (DATE OF CHANGE OF NAME : 15/06/1990)}

SUMMARY

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

^{Legal Form : Pub Ltd Co}

^{Date Inc. : 24/12/1981}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : 1,235,911,000}

^{Net Worth : 497,983,000}

^{Paid-Up Capital : 100,000,000}

^{Employees : 5,057}

^{Net Result : 210,294,000}

^{Auditor : ERNST & YOUNG}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 24/12/1981}

PRINCIPAL(S)

^{CHENG SHAO SHIONG @ BERTIE CHENG S0046247J Director}

DIRECTOR(S)

^{CHENG SHAO SHIONG @ BERTIE CHENG S0046247J Director}

^{Appointed on : 01/07/1998}

^{Street : 19 LEMON AVENUE}

^{LUCKY PARK}

^{Town : SINGAPORE}

^{Postcode : 277818}

^{Country : Singapore}

^{LAM JOON KHOI S1306646I Director}

^{Appointed on : 16/03/1999}

^{Street : 26 MINARET WALK}

^{EXCELSIOR GARDENS}

^{Town : SINGAPORE}

^{Postcode : 467396}

^{Country : Singapore}

^{TAN GIOK LAN JANICE S1657409J Company Secretary}

^{Appointed on : 15/07/1996}

^{Street : 43 LORONG 5 TOA PAYOH}

^#08-131

^{Town : SINGAPORE}

^{Postcode : 310043}

^{Country : Singapore}

^{TAN PHENG HOCK S1273380A Director}

^{Appointed on : 01/01/2001}

^{Street : 1 DEDAP PLACE}

^{Town : SINGAPORE}

^{Postcode : 809500}

^{Country : Singapore}

^{TAY KOK KHIANG S0031986D Alternate Director}

^{Appointed on : 01/08/2002}

^{Street : 51 KING'S ROAD}

^{Town : SINGAPORE}

^{Postcode : 268096}

^{Country : Singapore}

^{CHANG SEE HIANG S0005809B Director}

^{Appointed on : 01/03/2004}

^{Street : 80 KIM SENG ROAD}

^#30-07

^{Town : SINGAPORE}

^{Postcode : 239426}

^{Country : Singapore}

^{TAN GUONG CHING S0416187D Director}

^{Appointed on : 15/07/2004}

^{Street : 27 CARMICHAEL ROAD}

^{GAY'S VILLAS}

^{Town : SINGAPORE}

^{Postcode : 359808}

^{Country : Singapore}

^{WEE SIEW KIM S1402519G Director}

^{Appointed on : 01/08/2002}

^{Street : 6 JOHN ROAD}

^{CAPITOL PARK}

^{Town : SINGAPORE}

^{Postcode : 298865}

^{Country : Singapore}

^{NG CHEE KHERN S1700435B Director}

^{Appointed on : 01/06/2006}

^{Street : 64 DEDAP ROAD}

^{TUAN SING PARK}

^{Town : SINGAPORE}

^{Postcode : 809468}

^{Country : Singapore}

^{LEE SEOW HIANG S7002408Z Alternate Director}

^{Appointed on : 01/06/2006}

^{Street : 343 UPPER BUKIT TIMAH ROAD}

^#05-01

^{THE HILLSIDE}

^{Town : SINGAPORE}

^{Postcode : 588196}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{PROFESSOR SU GUANING S0004946H}

^{LIM NEO CHIAN S0006792Z}

^{WONG WOON LIONG S0007088B}

^{BG GOH YONG SIANG S0034053G}

^{NG KEE CHOE S0070715E}

^{HO CHING S0144440I}

^{LIM MING SEONG S0348871C}

^{LIM CHIN BENG S0461797E}

^{LIM CHUAN POH S1130393E}

^{BOON SWAN FOO S1168274Z}

^{BG NG TECK HENG RAYMUND S1279256E}

^{LIM KIM CHOON S1318675H}

^{CHEN CHOONG JOONG S2034716C}

^{NEO AI LIN MICHELLE S2191565C}

^{CHEW LENG SENG S0467243G}

^{CHANG CHEOW TECK S1437672J}

^{TAN CHENG HAN S2572018J}

^{COL ANG AIK HWANG GARY S1810612D}

ACTIVITY (IES)

^{AIRCRAFT SERVICING And MAINTENANCE Code: 660}

^{ENGINEERING WORKS Code: 7880}

^{HOLDING COMPANIES Code: 11320}

^{BUSINESS SERVICES Code: 4}

^{BASED ON ACRA'S RECORD AS AT 19/03/2007}

^{1) MANUFACTURE AND ASSEMBLY OF AIRCRAFT AND SPACECRAFT (INCLUDING AIRCRAFT ENGINES AND OTHER PARTS); INVESTMENT HOLDING COMPANY AND}

CHARGES

^{Amount : 1,082,646}

^{Comments : CHARGE NO: 8801167 (DISCHARGED - 04/07/1995)}

^{AMOUNT SECURED: S$1,082,645.50}

^{CHARGEE(S): ROBOT LEASING & CONSULTANCY PTE LTD}

^{Amount : 1,071,809}

^{Comments : CHARGE NO: 8602293 (DISCHARGED - 02/12/1993)}

^{AMOUNT SECURED: S$1,071,809.15}

^{CHARGEE(S): ROBOT LEASING & CONSULTANCY PTE LTD}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{CITIBANK N.A.}

^{DBS BANK LTD.}

ASSOCIATED COMPANY(IES)

^{1988 JV PTE. LTD.}

^{1 TEMASEK AVENUE}

^#17-01

^{MILLENIA TOWER}

^{SINGAPORE Singapore}

^{TURBINE COATING SERVICES PTE LTD}

^{51 EXETER ROAD}

^14-01/04

^{COMCENTRE 1 TOWER Singapore}

^{TURBINE OVERHAUL SERVICES PTE LTD}

^{5 TUAS DRIVE 2}

^JURONG

^{SINGAPORE Singapore}

^{AEROSPACE ENGINEERING SERVICES PTY LTD Australia}

^{SHANGHAI TECHNOLOGIES AEROSPACE COMPANY LIMITED China}

SHAREHOLDERS(S)

^{SINGAPORE TECHNOLOGIES ENGINEERING 200,000,000 Company}

^{Street : 51 CUPPAGE ROAD}

^#09-08

^{STARHUB CENTRE}

^{Town : SINGAPORE}

^{Postcode : 229469}

^{Country : Singapore}

HOLDING COMPANY

^{SINGAPORE TECHNOLOGIES ENGINEERING LTD 199706274H % : 100}

SUBSIDIARY (IES)

^{ST AEROSPACE SYSTEMS PTE LTD Singapore}

^{VISIONTECH INVESTMENT PTE LTD Singapore}

^{ST AIRPORT GROUND SERVICES PTE LTD Singapore}

^{ST AEROSPACE ENGINES PTE LTD Singapore}

^{ST AEROSPACE INTERNATIONAL STRUCTURES PTE LTD Singapore}

^{ST AEROSPACE SUPPLIES PTE LTD Singapore}

^{ST AEROSPACE ENGINEERING PTE LTD Singapore}

^{ST AVIATION SERVICES CO PTE LTD Singapore}

^{SINGAPORE BRITISH ENGINEERING (PTE) LTD Singapore}

^{VISIONTECH ENGINEERING PTE LTD Singapore}

^{BOURNEMOUTH AVIAITION SERVICES COMPANY LIMITED United Kingdom}

^{ST AEROSPACE (UK) LIMITED United Kingdom}

^{SINGAPORE AEROSPACE KABUSHIKI KAISHA Japan}

^{ST AVIATION RESOURCES PTE LTD Singapore}

^{ST AVIATION RESOURCES 1 LIMITED British Virgin Islands}

^{SINGAPORE TECHNOLOGIES ENGINEERING (EUROPE) LTD United Kingdom}

^{AIRLINE ROTABLES LIMITED United Kingdom}

^{ST PAE HOLDINGS PTY LTD Australia}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : GOOD}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : GOOD}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Date Account Lodged: 29/04/2006}

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

^{Number of weeks: 52 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED CONSOLIDATED}

^{--- ASSETS ---}

^{Preliminary Exp 37,521,000 31,795,000 38,434,000}

^{Intangible Fixed Assets: 2,157,000 2,004,000 56,000}

^{Tangible Fixed Assets: 244,620,000 196,928,000 176,676,000}

^{Investments 132,683,000 106,157,000 93,125,000}

^{Total Fixed Assets: 416,981,000 336,884,000 308,291,000}

^{Inventories: 163,561,000 124,218,000 102,709,000}

^{Receivables: 485,382,000 554,113,000 639,706,000}

^{Short Term Fin. Assets: 259,680,000 200,000,000 146,126,000}

^{Cash,Banks, Securities: 75,389,000 157,523,000 234,766,000}

^{Other current assets: 373,000 372,000 338,000}

^{Total Current Assets: 984,385,000 1,036,226,000 1,123,645,000}

^{TOTAL ASSETS: 1,401,366,000 1,373,110,000 1,431,936,000}

^{--- LIABILITIES ---}

^{Total Equity: 497,983,000 484,100,000 488,464,000}

^{Reserve for pensions: - - 34,000}

^{L/T deferred taxes: 4,554,000 3,977,000 2,623,000}

^{Other long term Liab.: 130,803,000 125,300,000 131,555,000}

^{Total L/T Liabilities: 135,357,000 129,277,000 134,212,000}

^{Trade Creditors: 460,825,000 442,172,000 471,668,000}

^{Short term liabilities: 1,628,000 1,558,000 1,553,000}

^{Advanced payments: 113,940,000 118,360,000 129,782,000}

^{Due to Bank: 2,845,000 3,083,000 1,057,000}

^{Provisions: 143,376,000 143,003,000 150,067,000}

^{Other Short term Liab.: 45,412,000 51,557,000 55,133,000}

^{Total short term Liab.: 768,026,000 759,733,000 809,260,000}

^{TOTAL LIABILITIES: 903,383,000 889,010,000 943,472,000}

PROFIT & LOSS ACCOUNT

^{Net Sales 1,235,911,000 1,118,309,000 1,092,173,000}

^{Purchases,Sces & Other Goods: 962,407,000 865,813,000 824,359,000}

^{Gross Profit: 273,504,000 252,496,000 267,814,000}

^{Result of ordinary operations 219,052,000 197,897,000 188,685,000}

^{NET RESULT BEFORE TAX: 255,443,000 235,400,000 225,189,000}

^{Tax : 32,239,000 40,042,000 44,379,000}

^{Net income/loss year: 210,294,000 187,275,000 176,297,000}

^{Interest Paid: 919,000 965,000 972,000}

^{Depreciation: 39,092,000 34,117,000 39,604,000}

^{Dividends: 215,321,000 183,719,000 174,912,000}

^{Wages and Salaries: 437,014,000 404,562,000 375,946,000}

^{Financial Income: 22,767,000 23,370,000 7,599,000}

RATIOS

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

^{Turnover per employee: 244396.08 221140.79 215972.51}

^{Net result / Turnover(%): 0.17 0.17 0.16}

^{Stock / Turnover(%): 0.13 0.11 0.09}

^{Net Margin(%): 17.02 16.75 16.14}

^{Return on Equity(%): 42.23 38.69 36.09}

^{Return on Assets(%): 15.01 13.64 12.31}

^{Dividends Coverage: 0.98 1.02 1.01}

^{Net Working capital: 216359000.00 276493000.00 314385000.00}

^{Cash Ratio: 0.10 0.21 0.29}

^{Quick Ratio: 0.73 0.94 1.08}

^{Current ratio: 1.28 1.36 1.39}

^{Receivables Turnover: 141.38 178.38 210.86}

^{Leverage Ratio: 1.82 1.84 1.93}

^{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 NET WORTH IMPROVED BY 2.87% FROM S$484,100,000 TO S$497,983,000 IN FY 2005. THE BREAKDOWN OF TOTAL EQUITY IS AS FOLLOWS: - SHARE CAPITAL AND RESERVES - 2005: S$463,025,000 (2004: S$452,329,000) - MINORITY INTERESTS - 2005: S$34,958,000 (2004: S$31,771,000)}

^{FURTHER BREAKDOWN OF SHARE CAPITAL AND RESERVES IS NOT AVAILABLE.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY CREDITORS AND ACCRUALS (BREAKDOWN NOT AVAILABLE) WHICH MADE UP 60.00% (2004: 58.20%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$460,825,000 IN FY 2005 (2004: S$442,172,000).}

^{AMOUNT DUE TO BANKS (IE SHORT-TERM BANK LOANS, UNSECURED) TOTALLED S$2,845,000 (2004: S$3,083,000). APART FROM AMOUNT DUE TO BANKS, ADVANCE PAYMENTS FROM CUSTOMERS AMOUNTED TO S$113,940,000 IN FY 2005 (2004: S$118,360,000).}

^{PROVISIONS OF S$143,376,000 (2004: S$143,003,000) COMPRISED PROVISIONS OF S$47,372,000 (2004: S$49,100,000) AND PROVISION FOR TAXATION (2005: S$96,004,000; 2004: S$93,903,000).}

^{IN THE LONG-TERM, THE ITEMS CLASSIFIED UNDER OTHER NON-CURRENT LIABILITIES OF S$130,803,000 (2004: S$125,300,000) CONSISTED OF:}

^{- ADVANCE PAYMENTS FROM CUSTOMERS - 2005: S$66,066,000 (2004: S$59,011,000)}

^{- DEFERRED INCOME - 2005: S$606,000 (2004: S$689,000)}

^{- LEASE OBLIGATIONS - 2005: S$11,415,000 (2004: S$12,884,000)}

^{- LOAN FROM HOLDING COMPANY - 2005: S$52,716,000 (2004: S$52,716,000)}

^{IN ALL, LEVERAGE FELL TO 1.82 TIMES, DOWN FROM 1.84 TIMES DUE TO AN IMPROVED TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION HAD WEAKENED AS SEEN FROM THE FALL IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. QUICK RATIO FELL FROM 0.94 TIMES TO 0.73 TIMES AND CURRENT RATIO DECLINED TO 1.28 TIMES IN FY 2005 (2004: 1.36 TIMES). LIKEWISE, CASH AND CASH EQUIVALENTS FELL BY 52.14% TO S$75,389,000 IN FY 2005, DOWN FROM S$157,523,000.}

^{LIKEWISE, NET WORKING CAPITAL DECLINED BY 21.75% TO S$216,359,000 IN FY 2005 (2004: S$276,493,000).}

^{PROFITABILITY:}

^{REVENUE ROSE BY 10.52% FROM S$1,118,309,000 TO S$1,235,911,000 AND THIS LED TO AN INCREASE IN NET PROFIT BY 12.29% TO S$210,294,000 FROM S$187,275,000. THIS COULD BE DUE TO DISTRIBUTION AND SELLING INCOME OF S$946,000 COMPARED TO DISTRIBUTION AND SELLING EXPENSES OF S$8,162,000. HENCE, NET MARGIN ROSE TO 17.02% IN FY 2005 (2004: 16.75%).}

^{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 HEALTHY AT 278.96 TIMES IN FY 2005 (2004: 244.94 TIMES).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{- LOAN RECEIVABLES - 2005: S$417,000 (2004: S$577,000)}

^{- DEFERRED TAX ASSETS - 2005: S$37,104,000 (2004: S$31,218,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 24/12/1981 AS A PUBLIC COMPANY LIMITED BY SHARES UNDER THE RESENT NAMESTYLE OF "SINGAPORE TECHNOLOGIES AEROSPACE LTD".}

^{SUBJECT WAS FORMERLY KNOWN AS "SINGAPORE AIRCRAFT INDUSTRIES PTE LTD" BUT CHANGED TO THE NAMESTYLE OF "SINGAPORE AEROSPACE LTD" ON 15/06/1990. SUBSEQUENTLY, ON 31/03/1995, IT CHANGED TO THE PRESENT NAMESTYLE.}

^{AS AT 04/01/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 200,000,000 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) MANUFACTURE AND ASSEMBLY OF AIRCRAFT AND SPACECRAFT (INCLUDING AIRCRAFT ENGINES AND OTHER PARTS); INVESTMENT HOLDING COMPANY AND PROVISION OF ENGINEERING, MARKETING AND ENGINEERING SUPPORT SERVICES}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE OF INVESTMENT HOLDING AND PROVISION OF ENGINEERING, MARKETING AND ENGINEERING SUPPORT SERVICES.}

^{THE HOLDING COMPANY IS SINGAPORE TECHNOLOGIES ENGINEERING LTD, A COMPANY INCORPORATED IN SINGAPORE.}

^{FROM THE RESEARCH DONE, SUBJECT IS THE ARM OF SINGAPORE TECHNOLOGIES ENGINEERING AND PROVIDES ONE-STOP AEROSPACE ENGINEERING AND MAINTENANCE SERVICES FOR A WIDE RANGE OF MILITARY AND COMMERCIAL AIRCRAFT THROUGH ITS THREE BUSINESS SEGMENTS:}

^{* AIRCRAFT MAINTENANCE AND MODIFICATION (AMM)}

^{* COMPONENT/ENGINE REPAIR AND OVERHAUL (CERO)}

^{* ENGINEERING AND MATERIALS SERVICES (EMS)}

^{SUBJECT PROVIDES DEFENCE AND COMMERCIAL CUSTOMERS A TOTAL AVIATION SUPPORT SYSTEM, HAVING EXTENSIVE CAPABILITIES IN ENGINEERING AND DEVELOPMENT, LIFE CYCLE MAINTENANCE, MATERIALS AND COMPONENT SUPPLIES, REFURBISHMENT, CUSTOMISED MODIFICATIONS AND UPGRADES.}

^PRODUCTS:

^{* HELICOPTERS}

^{- BELL, SUPER PUMA, PUMA, FENNEC, AS355, ECUREUIL, EC-135, COLIBRI, APACHE AND CHINOOK.}

^{* GENERAL AVIATION}

^{- CESSNA, PIPER, LEARJET, SKYVAN AND OTHER SMALLER-TO-MEDIUM AIRCRAFT.}

^{* COMMERCIAL AIRCRAFT}

^{- B727, B737, B747, B757, B767, B777, DC-8, DC-9, DC-10, MD-10, MD-11, MD-80, A300, A310, A320, A330 AND A340}

^{* ENGINE SUPPORT}

^{- CFMI CFM56-3, PRATT & WHITNEY JT8D & F-100, GENERAL ELECTRIC J85 & F404, HONEYWELL T53 & T55, ROLLS ROYCE ALLISON T56/501 AND TURBOMECA MAKILA & ARRIEL}

^{* DESIGN, DEVELOPMENT & UPGRADES}

^{- B757, F-16, F-5, A-4, EC120}

^{* COMPONENTS & SPARES SUPPORT}

^{- AVIATION PARTS AND COMPONENTS FOR CIVIL AND MILITARY AIRCRAFT THROUGH THE AVIATION LOGISTICS CENTRE.- COMPONENT CLASS: RADIO, INSTRUMENT, ELECTRICAL, GYRO, HYDRAULICS, PROPELLERS, TRANSMISSION, PNEUMATICS AND LANDING GEARS - KEY COMPONENTS: CSD, IDG, GCU, PDU, CVR, SERVOS, RADAR, GENERATORS, PUMPS, ACTUATORS AND FUEL COMPONENTS}

^{* MILITARY AIRCRAFT}

^{- F-16, F-5, A-4, E-2C, C-130, F-50, KC-135 AND S-211}

^{SUBJECT'S CLIENTS ARE SERVICED FROM FACILITIES AND OFFICES IN ASIA PACIFIC, EUROPE, THE MIDDLE EAST, EUROPE AND UNITED STATES OF AMERICA.}

^{GLOBAL CUSTOMER BASE:}

^{* INCLUDES MANY OF THE WORLD'S ADVANCED AIR FORCES, LEADING AIRLINES AND FREIGHT FORWARDERS.}

^CLIENTS:

^{* ALL NIPPON AIRWAYS, FEDEX EXPRESS, HAWAII AIRLINES, JAPAN AIRLINES, NORTHWEST AIRLINES, ORBIS, REPUBLIC OF SINGAPORE AIR FORCE, TRANSMILE UNITED AIRLINES, VENEZUELAN AIR FORCE.}

^{SUBJECT'S MAINTENANCE FACILITIES ARE VARIOUSLY CERTIFIED TO ISO 9001, 9002 AND OHSAS 18000 STANDARD WHICH ARE ENDORSED BY VARIOUS INTERNATIONAL CIVIL AVIATION AUTHORITIES INCLUDING:}

^{* CIVIL AVIATION AUTHORITY OF SINGAPORE (CAAS)}

^{* EEC JOINT AVIATION AUTHORITIES (JAA)}

^{* JAPAN CIVIL AVIATION BUREAU (JCAB)}

^{* UK CIVIL AVIATION AUTHORITY (CAA)}

^{* US FEDERAL AVIATION ADMINISTRATION (FAA)}

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

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^AWARD:

^{* SINGAPORE QUALITY CLASS}

^NEWS:

^{"ST AEROSPACE CLOSES BASCO FACILITY"}

^{THURSDAY, DECEMBER 21, 2006}

^{SINGAPORE TECHNOLOGIES AEROSPACE LTD (ST AEROSPACE), THE AEROSPACE ARM OF SINGAPORE TECHNOLOGIES ENGINEERING LTD (ST ENGINEERING), TODAY ANNOUNCED THAT THE BOARD OF DIRECTORS OF BOURNEMOUTH AVIATION SERVICES COMPANY (BASCO) HAS DECIDED TO CEASE OPERATIONS AT THE UK FACILITY, EFFECTIVE BY THE END OF THIS YEAR. ALL WORK COMMITMENTS TO CUSTOMERS HAVE BEEN COMPLETED. THE CLOSURE WILL AFFECT 145 STAFF BASED IN BOURNEMOUTH.}

^{THIS CLOSURE IS NOT EXPECTED TO HAVE ANY MATERIAL IMPACT ON THE CONSOLIDATED NET TANGIBLE ASSETS PER SHARE AND EARNINGS PER SHARE OF ST ENGINEERING FOR THE CURRENT FINANCIAL YEAR.}

^{"AIRBUS AWARDS ST AEROSPACE US$635M DEAL"}

^{WEDNESDAY, NOVEMBER 01, 2006}

^{SINGAPORE TECHNOLOGIES AEROSPACE LTD (ST AEROSPACE) TODAY ANNOUNCED THAT IT HAS BEEN AWARDED A US$635M (APPROXIMATELY S$1B) CONTRACT BY AIRBUS TO PROVIDE TOTAL AVIATION SUPPORT FOR A US AIRLINE. THE AGREEMENT, WHICH SPANS 12 YEARS FROM 2007, COVERS AIRCRAFT LINE AND LIGHT MAINTENANCE, COMPONENTS MANAGEMENT AND SUPPORT, ENGINEERING AND TECHNICAL SERVICES FOR THE FLEET OF UP TO 66 AIRBUS A320 FAMILY OF AIRCRAFT. ST AEROSPACE IS THE AEROSPACE ARM OF SINGAPORE TECHNOLOGIES ENGINEERING LTD (ST ENGINEERING).}

^{THIS CONTRACT IS NOT EXPECTED TO HAVE ANY MATERIAL IMPACT ON THE CONSOLIDATED NET TANGIBLE ASSETS PER SHARE AND EARNINGS PER SHARE OF ST ENGINEERING FOR THE CURRENT FINANCIAL YEAR.}

^{"ST AEROSPACE TO OPEN FACILITY IN PANAMA; CLINCHES CONTRACT WITH COPA AIRLINES"}

^{FRIDAY, AUGUST 18, 2006}

^{SINGAPORE TECHNOLOGIES AEROSPACE LTD (ST AEROSPACE), THE AEROSPACE ARM OF SINGAPORE TECHNOLOGIES ENGINEERING LTD (ST ENGINEERING), TODAY ANNOUNCED THAT AT THE OPENING CEREMONY OF HOWARD INTERNATIONAL AIRPORT, IT HAS SIGNED A LEASE AGREEMENT WITH AGENCIA DEL ÁREA ECONÓMICA ESPECIAL PANAMÁ-PACÍFICO (AAEEPP) FOR ITS FACILITY TO BE OPENED IN PANAMA. AT THE SAME TIME, IT HAS WON A MAINTENANCE SERVICE AGREEMENT FROM PANAMA'S NATIONAL CARRIER, COPA AIRLINES, FOR ITS CURRENT FLEET OF 22 B737 AIRCRAFT.}

^{-- ABOVE NEWS EXTRACT VIA SUBJECT'S WEBSITE.}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 08/01/2007.}

^{NUMBER OF EMPLOYEES (AEROSPACE SECTOR):}

^{* GROUP - 2005: 5,057 (2004: 4,869; 2003: 4,877; 2002: 4,716; 2001: 4,480)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{540 AIRPORT ROAD}

^{PAYA LEBAR}

^{SINGAPORE 539938}

^{DATE OF CHANGE OF ADDRESS: -}

^{-- RENTED PREMISE}

^{-- PREMISE OWNED BY: ST AEROSPACE ENGINEERING PTE LTD}

^WEBSITES:

^{* www.staero.aero}

^{* www.stengg.com (HOLDING COMPANY'S)}

^EMAIL:

^{* mktg.aero@stengg.com}

MANAGEMENT

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

^{1) CHANG SEE HIANG, A SINGAPOREAN}

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

^{YEO HIAP SENG LIMITED}

^{STT COMMUNICATIONS LTD}

^{SINGAPORE TECHNOLOGIES TELEMEDIA PTE LTD}

^{2) CHENG SHAO SHIONG @ BERTIE CHENG, A SINGAPOREAN}

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

^{SINGAPORE TECHNOLOGIES ELECTRONICS LIMITED}

^{SINGAPORE PETROLEUM COMPANY LIMITED}

^{THOMSON MEDICAL CENTRE LIMITED}

^{NOBEL DESIGN HOLDINGS LTD}

^{ST TELEPORT PTE LTD}

^{NEXWAVE TELECOMS PTE LTD}

^{DIGITAL NETWORK ACCESS COMMUNICATIONS PTE LTD}

^{TELECHOICE INTERNATIONAL LIMITED}

^{SUNPAGE COMMUNICATIONS PTE LTD}

^{HONG LEONG FINANCE LIMITED}

^{TEE INTERNATIONAL LIMITED}

^{SHC INDUSTRIAL PTE LTD}

^{3) TAN GUONG CHING, A SINGAPOREAN}

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

^{STT COMMUNICATIONS LTD}

^{SINGAPORE TECHNOLOGIES TELEMEDIA PTE LTD}

^{STARHUB LTD.}

^{4) TAN PHENG HOCK, A SINGAPOREAN}

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

^{SEMBCORP MARINE LTD}

^{SINGAPORE TECHNOLOGIES MARINE LTD}

^{SINGAPORE TECHNOLOGIES ELECTRONICS LIMITED}

^{SINGAPORE TECHNOLOGIES KINETICS LTD}

^{ST TRAINING & SIMULATION PTE LTD}

^{SINGAPORE TECHNOLOGIES ENGINEERING LTD}

^{SINGAPORE TECHNOLOGIES DYNAMICS PTE LTD}

^{5) LAM JOON KHOI, A SINGAPOREAN}

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

^{6) WEE SIEW KIM, A SINGAPOREAN}

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

^{SINGAPORE TECHNOLOGIES MARINE LTD}

^{SINGAPORE TECHNOLOGIES ELECTRONICS LIMITED}

^{SINGAPORE TECHNOLOGIES KINETICS LTD}

^{1988 JV PTE. LTD.}

^{PACIFIC FLIGHT SERVICES PTE LTD}

^{SBS TRANSIT LTD}

^{TURBINE OVERHAUL SERVICES PTE LTD}

^{SBS TRANSIT LTD}

^{SINGAPORE TECHNOLOGIES DYNAMICS PTE LTD}

^{7) NG CHEE KHERN, A SINGAPOREAN}

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

^{DSO NATIONAL LABORATORIES}

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 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%)

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