MIRA INFORM REPORT

Report Date :

07.05.2007

IDENTIFICATION DETAILS

Name :	ECOM AGROINDUSTRIAL ASIA PTE. LTD.
Registered Office :	^79 Robinson Road, #17-04/05/06^, Cpf Building, Singapore^– 068897
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^29/06/2000
Com. Reg. No.:	^200005683C
Legal Form :	^Pte Ltd
Line of Business :	Commodities Trading, Commodities Trading Arrangements and Supportive Affreightment Activities.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

ECOM AGROINDUSTRIAL ASIA PTE. LTD.

Line Of Business 

COMMODITIES TRADING, COMMODITIES TRADING ARRANGEMENTS AND SUPPORTIVE AFFREIGHTMENT ACTIVITIES

Parent Company

ECOM AGROINDUSTRIAL CORPORATION LTD

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

CONSOLIDATED

Sales : US$243,911,079

Networth : US$17,561,526

Paid-Up Capital : US$5,490,000

Net result : US$10,697,884

Net Margin(%) : 4.39

Return on Equity(%) : 60.92

Leverage Ratio : 3.89

Rating

Credit Rating : Sing $ 10000001 – Sing $ 50000000

COMPANY IDENTIFICATION

^{Subject Company : ECOM AGROINDUSTRIAL ASIA PTE. LTD.}

^{Former Name : -}

^{Business Address: 79 ROBINSON ROAD}

^#17-04/05/06

^{CPF BUILDING}

^{Town: SINGAPORE}

^{Postcode: 068897}

^{County: -}

^{Country: Singapore}

^{Telephone: 6222 4468}

^{Fax: 6222 4864}

^{ROC Number: 200005683C}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 29/06/2000}

^{Previous Legal Form: -}

^{Summary year : 31/12/2005}

^{Sales: 243,911,079}

^{Networth : 17,561,526}

^{Capital: 5,674,797}

^{Paid-Up Capital: 5,490,000}

^{Employees: 20}

^{Net result : 10,697,884}

^{Share value: -}

^{AUDITOR: PRICEWATERHOUSECOOPERS}

^{BASED ON ACRA'S RECORD AS AT 02/05/2007}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 11,957,000 SGD 11,957,000.00}

^{PAID-UP ORDINARY - SGD 11,957,000.00}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 29/06/2000}

PRINCIPAL(S)

^{RICHARD SEAN FAHLEY G5703849M Director}

DIRECTOR(S)

^{FELIPE RECOLONS ESTEVE G5555462K Director}

^{Appointed on : 01/10/2006}

^{Street : 79 ROBINSON ROAD}

^#17-05

^{CPF BUILDING}

^{Town: SINGAPORE}

^{Postcode: 068897}

^{Country: Singapore}

^{RICHARD SEAN FAHLEY G5703849M Director}

^{Appointed on : 06/06/2003}

^{Street : 22 CORONATION DRIVE}

^{Town: SINGAPORE}

^{Postcode: 269576}

^{Country: Singapore}

^{LATHIKA DEVI AMMA D/O K R PILLAY S1552769B Company Secretary}

^{Appointed on : 31/10/2003}

^{Street : 67 CHOA CHU KANG ROAD}

^{NICON GARDENS}

^{Town: SINGAPORE}

^{Postcode: 689415}

^{Country: Singapore}

^{EILEEN KOH S7246425G Company Secretary}

^{Appointed on : 01/07/2005}

^{Street : 9 SENGKANG SQUARE}

^#13-06

^{COMPASS HEIGHTS}

^{Town: SINGAPORE}

^{Postcode: 545075}

^{Country: Singapore}

^{ANDREW DAVID HAY FALCONER G5880682Q Director}

^{Appointed on : 23/02/2007}

^{Street : 1A JALAN NAGA SARI}

^{Town: SINGAPORE}

^{Postcode: 288830}

^{Country: Singapore}

^{CHENG YAM SAN S1638731B Director}

^{Appointed on : 25/11/2005}

^{Street : 472 SEMBAWANG DRIVE}

^#07-417

^{Town: SINGAPORE}

^{Postcode: 750472}

^{Country: Singapore}

^{FOO MAY TING S7027820J Director}

^{Appointed on : 01/02/2006}

^{Street : 735 BEDOK RESERVOIR ROAD}

^#08-5298

^{WATERFRONT VIEW}

^{Town: SINGAPORE}

^{Postcode: 470735}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{FOO SOON SOO S1310912E}

^{CHOONG MEE FONG S2564466B}

^{JOHN DENNIS GIBBONS 102503225}

^{ANDREW PETER HALLE 740160962}

^{DANIEL JOHN WILLETT 110767080}

^{PABLO ESTEVE G5569785Q}

^{ALLISON HUANG HAN YING S7476029E}

ACTIVITY(IES)

^{COFFEE BAG PACKERS Code:4760}

^{BASED ON ACRA'S RECORD AS AT 02/05/2007}

^{1) WHOLESALE OF COFFEE, COCOA AND TEA}

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)

^{ECOM AGROINDUSTRIAL CORPORATION 11,957,000 Company}

^{Street : AVENUEGUILLEMIN 16 PO BOX}

^{64 CH-1009 PULLY}

^Town:

^Postcode:

^{Country: Sweden}

HOLDING COMPANY

^{ECOM AGROINDUSTRIAL CORPORATION UF27135W % : 100}

SUBSIDIARY(IES)

^{XIN YI KANG TEXTILE PRODUCTS PTE. LTD.}

^Singapore

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : UPWARD

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: 12/10/2006}

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

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS}

^{Tangible Fixed Assets: 1,799,940 1,801,765}

^{Total Fixed Assets: 1,799,940 1,801,765}

^{Inventories: 58,079,608 33,569,554}

^{Receivables: 20,785,547 13,112,889}

^{Cash,Banks, Securitis: 1,459,655 1,543,063}

^{Other current assets: 3,691,764 3,858,738}

^{Total Current Assets: 84,016,574 52,084,244}

^{TOTAL ASSETS: 85,816,514 53,886,009}

^{--- LIABILITIES}

^{Equity capital: 5,490,000 5,490,000}

^{Profit & loss Account: 12,071,526 1,373,642}

^{TOTAL EQUITY: 17,561,526 6,863,642}

^{L/T deffered taxes: - 95,000}

^{Total L/T Liabilities: - 95,000}

^{Trade Creditors: 29,744,842 20,333,798}

^{Prepay. & Def. charges: 2,078,255 783,722}

^{Due to Bank: 30,090,000 23,780,981}

^{Provisions: 912,879 -}

^{Other Short term Liab.: 5,429,012 2,028,866}

^{Total short term Liab.: 68,254,988 46,927,367}

^{TOTAL LIABILITIES: 68,254,988 47,022,367}

PROFIT & LOSS ACCOUNT

^{Net Sales 243,911,079 201,798,275}

^{Gross Profit: 18,484,530 3,896,105}

^{NET RESULT BEFORE TAX: 11,514,521 682,147}

^{Tax : 816,637 22,015}

^{Net income/loss year: 10,697,884 660,132}

^{Interest Paid: 1,985,472 690,529}

^{Depreciation: 278,713 208,227}

^{Purchases,Sces & Other Goods: 226,651,957 201,056,604}

^{Wages and Salaries: 2,323,228 1,132,097}

^{Financial Income: 303,095 89,429}

RATIOS

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

^{Turnover per employee: 12195553.95 10089913.75}

^{Net result / Turnover(%): 0.04 0.00}

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

^{Stock / Turnover(%): 0.24 0.17}

^{Net Margin(%): 4.39 0.33}

^{Return on Equity(%): 60.92 9.62}

^{Return on Assets(%): 12.47 1.23}

^{Net Working capital: 15761586.00 5156877.00}

^{Cash Ratio: 0.02 0.03}

^{Quick Ratio: 0.33 0.31}

^{Current ratio: 1.23 1.11}

^{Receivables Turnover: 30.68 23.39}

^{Leverage Ratio: 3.89 6.85}

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 1.56 TIMES FROM US$6,863,642 IN FY 2004 TO US$17,561,526 IN FY 2005. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$12,071,526 (2004: US$1,373,642); A RISE OF 7.79 TIMES FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY AMOUNT DUE TO BANKS WHICH MADE UP 44.08% (2004: 50.68%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$30,090,000 (2004: US$23,780,981). THE BREAKDOWN IS AS FOLLOWS:}

^{-SHORT-TERM BANK BORROWINGS - 2005: US$30,090,000 (2004: US$23,780,981)}

^{IN ALL, LEVERAGE RATIO FELL FROM 6.85 TIMES TO 3.89 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 RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 1.23 TIMES, UP FROM 1.11 TIMES AND QUICK RATIO IMPROVED TO 0.33 TIMES FROM 0.31 TIMES IN FY 2004.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 2.06 TIMES FROM US$5,156,877 IN FY 2004 TO US$15,761,586.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-PETTY CASH - 2005: US$6,890 (2004: US$90,086)}

^{-CASH AT BANK - 2005: US$1,452,765 (2004: US$1,452,977)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 20.87% FROM US$201,798,275 IN FY 2004 TO US$243,911,079 AND NET PROFIT ROSE BY 51.21 TIMES TO US$10,697,884 (2004: US$660,132). HENCE, NET MARGIN ROSE TO 4.39% (2004: 0.33%).}

^{DERIVATION OF GROSS PROFIT:}

^{-SALE OF GOODS - 2005: US$243,911,079 (2004: US$201,798,275)}

^{-COST OF SALES - 2005: US$226,651,957 (2004: US$201,056,604)}

^{-GAIN ON COMMODITY FUTURES, FORWARDS, AND FOREIGN EXCHANGE CONTRACTS}

^{- 2005: US$1,225,408 (2004: US$3,154,434)}

^{-GROSS PROFIT - 2005: US$18,484,530 (2004: US$3,896,105)}

^{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:}

^{SHORT-TERM BANK BORROWINGS}

^{THE SHORT-TERM BANK BORROWINGS WITH FINANCIAL INSTITUTIONS MATURE IN VARYING DATES WITHIN 3 MONTHS (2004: 3 MONTHS) FROM THE FINANCIAL YEAR-END. THE WEIGHTED AVERAGE EFFECTIVE INTEREST RATE OF THESE BORROWINGS AS AT 31 DECEMBER 2005 WAS 5.17% (2004: 3.31%) PER ANNUM. THE CARRYING AMOUNTS OF SHORT TERM BANK BORROWINGS APPRXOIMATE THEIR FAIR VALUES. THE SHORT-TERM BANK BORROWINGS ARE ALL DENOMINATED IN UNITED STATES DOLLAR.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 29/06/2000 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "ECOM AGROINDUSTRIAL ASIA PTE. LTD. ".}

^{AS AT 02/05/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 11,957,000 SHARES OF A VALUE OF S$11,957,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF COFFEE, COCOA AND TEA}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF COMMODITIES TRADING, COMMODITIES TRADING ARRANGEMENTS AND SUPPORTIVE AFFREIGHTMENT ACTIVITIES.}

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

^{BACKGROUND OF ECOM AGROINDUSTRIAL CORP. LTD.}

^{WITH OVER 150 YEARS OF MARKET EXPERIENCE, ECOM AGROINDUSTRIAL CORP. I COMMITTED TO BEING A HIGHLY RESPECTED LEADER WITHIN THE SOFT COMMODITIES INDUSTRY. OUR GLOBAL OPERATIONS RELY ON THEIR EXTENSIVE KNOWLEDGE AND EXPERIENCE IN SUPPLY CHAIN IMPROVEMENT, RISK MANAGEMENT, AND CLIENT-FOCUSED DISTRIBUTION TO CREATE A VALUABLE AND PROFITABLE ENVIRONMENT FOR THEIR SUPPLIERS, CUSTOMERS, SHAREHOLDERS, AND EMPLOYEES}

^{BACKGROUND OF ECOM COTTON}

^{ECOM COTTON IS PRESENT IN ALL MAJOR EXPORTING AND CONSUMING COUNTRIES AND SUPPLIES DOMESTIC AND INTERNATIONAL MILLS IN ALL MAJOR SECTORS:}

^{YARN, DENIM, HOME FURNISHINGS, MEDICAL AND INDUSTRIAL APPLICATIONS, BROAD CLOTH, TOWEL AND A FULL RANGE OF SPECIALIST APPLICATIONS. ALL COTTONS HANDLED BY ECOM ARE CLOSELY MONITORED FOR QUALITY THROUGH THEIR HAND CLASSING AND HVI FACILITIES.}

^COTTON

^{* SHORT STAPLE}

^{* UPLAND}

^{* LONG STAPLE}

^{* PIMA COTTONS}

^{OWN AND OPERATE GINNING FACILITIES IN BRAZIL, PARAGUAY AND MEXICO}

^{BACKGROUND OF ECOM COFFEE}

^{ECOM COFFEE MANAGE ALL OF THE MILLING, PROCESSING, WAREHOUSING, EXPORTING, AND TRADING FACILITIES. AWARE OF CROP FORECASTS, WEATHER UPDATES, AND OTHER INFORMATION THAT MAY INFLUENCE CURRENT AND FUTURE SUPPLIES. IN ADDITION TO THESE TECHNICAL ASPECTS, EACH SAMPLE THAT PASSES THROUGH AN ECOM OFFICE IS CUPPED AND GRADED BY EXPERIENCED LAB TECHNICIANS, FURTHER ENSURING THAT ALL COFFEE DELIVERED BY ECOM MEETS THE MOST CRITICAL STANDARDS. INVOLVED IN ALL ASPECTS OF THE SUPPLY CHAIN. OUR LOGISTICS DEPARTMENT HANDLES ISSUES INVOLVING WAREHOUSING, MOVEMENT, AND STEAMSHIP LINES, WHILE OUR TRADING DEPARTMENT HANDLES SALES, FUTURES AND OPTIONS, AND CONTRACTS FOR BOTH CURRENT AND UPCOMING CROP HARVESTS.}

^COFFEE

^{* SPECIALTY}

^{* ORGANIC}

^{* DECAFFEINATED}

^{* SUSTAINABLE}

^{* FAIRTRADE}

^BEANS

^{* ARABICA}

^{* ROBUSTA}

^{SUPPLIERS AND CLIENTS INCLUDE:}

^{* SMALL PRODUCERS, PLANTATION OWNERS, GROWER COOPERATIVES, SPECIALTY AND COMMERCIAL ROASTERS}

^{BACKGROUND OF ECOM OILSEED}

^{DURING THE 1980'S, ECOM AGROINDUSTRIAL OPENED AN OILSEED PROCESSING OPERATION IN BRAZIL, VERTICALLY INTEGRATING OUR COTTONSEED PROCESSING OPERATIONS THAT BEGAN IN THE 1930'S. WHAT ORIGINALLY BEGAN AS A LOCAL JOINT VENTURE QUICKLY GREW INTO A GLOBAL OPERATION THAT INCLUDES A TOTAL YEARLY PRODUCTION OF 450,000 TONS OF SUNFLOWER, CANOLA, SOYBEANS, AND COTTONSEED. COTTONSEED IS A NATURAL BYPRODUCT OF OUR SEED COTTON GINNING OPERATIONS, WHICH PRODUCE APPROXIMATELY 400,000 BALES PER YEAR.}

^OILSEEDS

^{* COTTON SEED}

^{* SOYBEAN}

^{* SUNFLOWER SEED}

^{* CANOLA SEED}

^{COTTON SEED}

^{PRODUCT USES AND APPLICATIONS}

^{* SEMI REFINED COTTONSEED OIL COOKING PURPOSES}

^{* COTTONSEED PELLETS HIGH PROTEIN SUPPLEMENT FOR LIVESTOCK AND POULTRY}

^{* LINTER BALES 'LONG FIBER' LINTER: MEDICAL SUPPLIES, TWINE, CANDLE WICKS}

^{'SHORT FIBER' LINTER: GUN POWDER, MOPS, COTTON BALLS,}

^{AUTOMOTIVE UPHOLSTERY, FINE WRITING PAPER; OTHER USES:}

^{PAINT, PLASTICS FOR WINDSHIELDS, TOOL HANDLES, X-RAY FILM}

^{* SOAPSTOCK USED IN PRODUCTION OF EVERYDAY SOAP}

^SOYBEAN

^{PRODUCT USES AND APPLICATIONS}

^{* CRUDE DEGUMMED SOYBEAN OIL COOKING PURPOSES}

^{* SOYBEAN MEAL HIGH PROTEIN MADE INTO PELLETS UNDER}

^{SPECIAL REQUEST - ANIMAL FEED}

^{(CHICKEN, CATTLE, ETC)}

^{* SOYBEAN HULL PELLETS ANIMAL FEED}

^{SUNFLOWER SEED}

^{PRODUCT USES AND APPLICATIONS}

^{* CRUDE SUNFLOWER SEED OIL COOKING PURPOSES}

^{* SUNFLOWER SEED PELLETS ANIMAL FEED}

^{CANOLA SEED}

^{PRODUCT USES AND APPLICATIONS}

^{* CRUDE DEGUMMED}

^{CANOLA SEED OIL COOKING PURPOSES}

^{* CANOLA PELLETS ANIMAL FEED}

^{BACKGROUND OF ECOM COCOA}

^{ECOM COCOA'S GLOBAL PRESENCE ENABLES US TO CONTINUOUSLY EXPAND, ALLOWING FOR TOTAL INVOLVEMENT THROUGHOUT THE TRADE. WHETHER IT IS FINANCING THE LOCAL COCOA FARMERS, TRADING THE COMMODITIES, OR THE PROCESSING AND SHIPPING OF A VARIETY OF BEANS, ECOM COCOA IS COMMITTED TO DELIVERING QUALITY COCOA PRODUCTS, WITH EXCELLENT SERVICE, ANYWHERE IN THE WORLD.}

^{IN THE MID-1980'S, THE COCOA DEPARTMENT INITIATED ITS OPERATIONS AT ECOM. COCOA TRADING OFFICES INITIALLY OPENED IN THE UNITED STATES AND BRAZIL AND UNDERWENT RAPID EXPANSION DUE IN PART TO THE SUPPORT, INFRASTRUCTURE, AND EXPERIENCE OF ECOM'S COFFEE AND COTTON DEPARTMENTS. ECOM COCOA OPENED ADDITIONAL OFFICES IN EUROPE, NORTH AMERICA, AND AFRICA IN THE 1990S. THROUGH EACH OF THESE EFFORTS WE HAVE DEVELOPED A STABLE FOUNDATION, SOLIDIFYING OUR GLOBAL PRESENCE.}

^{TODAY, ECOM COCOA HAS OPERATIONS IN THE UNITED STATES, MEXICO, SWITZERLAND, SINGAPORE, INDONESIA, CHINA, IVORY COAST, NIGERIA AND CAMEROON, AND COCOA PROCESSING PLANTS IN HOLLAND, MALAYSIA AND MEXICO}

^SERVICES:

^{* WORLD COCOA MARKET CONSULTING}

^{* CUSTOMIZED PRODUCTS ACCORDING TO A CLIENT'S NEEDS AND SPECIFICATIONS}

^{* TECHNICAL SUPPORT AND CONSULTING ON PRODUCT APPLICATIONS AND PROBLE SOLVING}

^{* MONITORING PRODUCT PERFORMANCE AND CUSTOMER FEEDBACK TO GUARANTEE SATISFACTION AND ENSURE A WIN-WIN RELATIONSHIP}

^{* LOGISTICS RESOURCES STRATEGICALLY LOCATED AND COORDINATED FOR EFFICIENT WORLDWIDE DELIVERIES - INCLUDING COMPLETE VENDOR MANAGED INVENTORY (VMI)}

^BRANDS:

^{* ECOM COCOA PRODUCTS ARE PRODUCED AT JB COCOA, THEIR CO-OWNED MALAYSIAN FACILITY, WHICH CURRENTLY OPERATES AT A 50,000MT/YEAR CAPACITY (WITH A MAXIMUM CAPACITY OF 150,000MT/YEAR). ECOM COCOA POWDERS (NATURAL AND ALKALIZED), BUTTER, AND LIQUOR ARE COMMERCIALIZED WORLDWIDE.}

^{* AMSA COCOA PRODUCTS ARE PRODUCED AT THEIR INDEPENDENTLY OWNED AMSA COCOA PROCESSING PLANT, WHICH HAS A GRINDING CAPACITY OF 11,000MT/YEAR. AMSA COCOA POWDER IS PRODUCED TO SERVE THE LOCAL MARKET IN MEXICO, WHILE THE MAJORITY OF AMSA COCOA BUTTER AND LIQUOR ARE EXPORTED TO THE USA.}

^{* DUTCH COCOA PRODUCTS ARE MANUFACTURED IN AMSTERDAM, HOLLAND IN THEIR NEWLY ACQUIRED PLANT, WHICH HAS A 40,000 MT/YEAR GRINDING CAPACITY. THE VERSATILITY OF THIS FACTORY ALLOWS US TO OFFER A VERY WIDE SPECTRUM OF NATURAL AND ALKALIZED POWDERS, WHETHER MEDIUM-FAT, HIGH-FAT OR LECITHINATED. THEY ALSO OFFER COCOA LIQUOR IN LIQUID FORM, BLOCK OR KIBBLED AND COCOA BUTTER. A COCOA VENDING MIX IS ALSO PRODUCED IN THIS FACTORY. CUSTOM-MADE PRODUCTS TO FIT EACH OF THEIR CUSTOMERS' NEEDS ARE ALSO AVAILABLE.}

^{BACKGROUND OF ECOM HOGS PARTNERSHIP}

^{IN JULY 1993, ECOM AGROINDUSTRIAL CORPORATION ENTERED THE HOGS INDUSTRY, AND OPENED ITS FIRST FARM SPECIALIZING IN HOGS. LOCATED IN THE PEROTE VALLEY IN VERACRUZ, MEXICO, GRANJAS CARROLL DE MEXICO S. DE R.L. DE C.V. (GCM) HAS RAPIDLY GROWN TO INCLUDE MORE THAN 13 FARMS BETWEEN THE VERACRUZ AND PUEBLA STATE BORDERS.}

^{THEY HAVE SOLIDIFIED OUR MARKET PRESENCE TO SECURE OUR POSITION AS MEXICO'S LARGEST HOG PRODUCER. EACH OF OUR FACILITIES CONTAINS STATE OF THE ART EQUIPMENT, ENABLING GCM TO SUPPLY ONLY THE HIGHEST QUALITY HOGS TO THE MEXICAN PORK MARKET.}

^{AGROINDUSTRIAS UNIDAS DE MEXICO S.A. DE C.V. (ECOM'S MEXICAN OPERATION) EXTENDS BOTH MANAGERIAL AND FINANCIAL GUIDANCE TO GCM, WHILE SMITHFIELDS FOODS, INC. - THE LARGEST HOG PRODUCER IN THE WORLD}

^{GCM FARMS AND RAISES LIVE HOGS THAT ARE SOLD IN MEXICO'S PORK MARKET. APPROXIMATELY 80% OF OUR LIVESTOCK IS SOLD TO CUSTOMERS IN MEXICO CITY, WHILE THE REMAINDER IS SOLD IN THE COUNTRY'S CENTRAL STATES OF VERACRUZ, PUEBLA AND MORELOS. THE MAJORITY OF OUR CLIENTS ARE FAMILY- OWNED BUSINESSES THAT SLAUGHTER AND PROCESS THE HOGS, SELLING THEM TO VARIOUS SEGMENTS OF THE MEAT MARKET.}

^{THE SIZE OF GCM - OVER 13 FARMS, 550 EMPLOYEES, AND CAPACITY FOR MORE THAN 700,000 HOGS}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* ECOM COTTON ESTABLISHED A OFFICE IN SINGAPORE AS PART OF ITS RESPONSE TO GROWING ACTIVITIES IN SOUTH EAST ASIA AND THE FAR EAST.}

^{* THE SUBJECT WORKS CLOSELY WITH ECOM TRADING SHANGHAI ON SHIPMENTS INTO CHINA, PARTICULARLY WITH RESPECT TO CONSIGNMENT STOCKS AND PROMPT DELIVERY OPERATIONS. FORWARD STOCK PROGRAMS SIMILAR TO ECOM AGROINDUSTRIAL ASIA'S ARE BEING ESTABLISHED FOR OTHER LARGE TEXTILE MANUFACTURING REGIONS IN ORDER TO FACILITATE MILL SUPPLY MANAGEMENT. THE OFFICE ALSO ASSISTS ORIGIN LOGISTICS AND SALES ADMINISTRATION ON SHIPMENTS INTO THE REGION, AND IS RESPONSIBLE FOR ALL ASPECTS OF CLIENT RELATIONSHIP MANAGEMENT AND THE COORDINATION OF REGIONAL GROUP CONTRACTING.}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 07/05/2007, THE FOLLOWING WAS GATHERED:}

^{IMPORT COUNTRIES:}

^{* WORLDWIDE}

^{EXPORT COUNTRIES:}

^{* WORLDWIDE}

^{THE SUBJECT MAINLY EXPORTS AND DOES SELL LOCALLY.}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2007: 20+}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 07/05/2007.}

^{THE COMPANY'S IMMEDIATE HOLDING CORPORATION, WHICH IS ALSO THE ULTIMATE HOLDING CORPORATION, IS ECOM AGROINDUSTRIAL CORPORATION LTD, INCORPORATED IN SWITZERLAND.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: 12; 2003 : 10)}

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

^{REGISTERED AND BUSINESS ADDRESS:}

^{79 ROBINSON ROAD}

^{#17-05/06 CPF BUILDING}

^{SINGAPORE 068897}

^{- RENTED PREMISE}

^{- OWNED BY CENTRAL PROVIDENT FUND BOARD}

^{- DATE OF CHANGE OF ADDRESS: 17/06/2005}

^{OTHER BUSINESS ADDRESS:}

^{79 ROBINSON ROAD}

^{#17-04/05/06 CPF BUILDING}

^{SINGAPORE 068897}

^{- RENTED PREMISE}

^{- OWNED BY CENTRAL PROVIDENT FUND BOARD}

^{YOUR PROVIDED CONTACT NUMBER:}

^{TEL: 6318 9914}

^{- ACCOUNTS DEPARTMENT}

^WEBSITE:

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

^EMAIL:

^-

MANAGEMENT

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

^{1) FELIPE RECOLONS ESTEVE, A MEXICAN}

^{- BASED IN SINGAPORE.}

^{2) RICHARD SEAN FAHLEY, AN AMERICAN}

^{- BASED IN SINGAPORE.}

^{3) ANDREW DAVID HAY FALCONER, A BRITISH}

^{- BASED IN SINGAPORE.}

^{4) CHENG YAM SAN, A SINGAPOREAN}

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

^{XIN YI KANG TEXTILE PRODUCTS PTE. LTD.}

^{5) FOO MAY TING, A SINGAPOREAN}

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

^{BERO COFFEE SINGAPORE PTE LTD}

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.

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