MIRA INFORM REPORT

Report Date :

14.05.2007

IDENTIFICATION DETAILS

Name :	DREYMOOR FERTILIZERS OVERSEAS PTE LTD
Registered Office :	^1 Temasek Avenue, # 27-01^, Millenia Tower, Singapore^– 039192
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^29/12/2003
Com. Reg. No.:	^200313284K
Legal Form :	^Pte Ltd
Line of Business :	Trading in Fertilizer Products and the provision of Demurrage, Storage and Inspection Services.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

DREYMOOR FERTILIZERS OVERSEAS PTE LTD

Line Of Business 

TRADING IN FERTILIZER PRODUCTS AND THE PROVISION OF DEMURRAGE, STORAGE AND INSPECTION SERVICES.

Parent Company

FLETCHER INTERNATIONAL LTD.

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY2005

COMPANY

Sales : US$216,628,820

Networth : US$ 12,720,237

Paid-Up Capital : US$ 99,971

Net result : US$ 12,636,961

Net Margin(%) : 5.83

Return on Equity(%) : 99.35

Leverage Ratio : 0.21 TIMES

COMPANY IDENTIFICATION

^{Subject Company : DREYMOOR FERTILIZERS OVERSEAS PTE LTD}

^{Former Name : -}

^{Registered Address : 1 TEMASEK AVENUE}

^{# 27-01}

^{MILLENIA TOWER}

^{Town : SINGAPORE}

^{Postcode : 039192}

^{County : -}

^{Country : Singapore}

^{Telephone : Not Listed}

^{Fax : Not Listed}

^{ROC Number : 200313284K}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 29/12/2003}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : 216,628,820}

^{Net Worth : 12,720,237}

^{Paid-Up Capital : 99,971}

^{Employees : -}

^{Net Result : 12,636,961}

^{Auditor : TAN KIA YEW & CO}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 29/12/2003}

PRINCIPAL(S)

^{OW YEW KUM S1100970J Director}

DIRECTOR(S)

^{JOHN JOSPEH RYAN 710319573 Director}

^{Appointed on : 26/01/2004}

^{Street : CISA, 5 PLACE DE MOLARD}

^{1204 GENEVA}

^{Town : GENEVA}

^{Postcode : -}

^{Country : Switzerland}

^{OW YEW KUM S1100970J Director}

^{Appointed on : 29/12/2003}

^{Street : 258 KIM KEAT AVENUE}

^#09-36

^{Town : SINGAPORE}

^{Postcode : 310258}

^{Country : Singapore}

^{ANTHONY ANNE CATHERINE S1347717E Company Secretary}

^{Appointed on : 26/01/2004}

^{Street : 8 LORONG 29 GEYLANG}

^#07-06

^{Town : SINGAPORE}

^{Postcode : 388064}

^{Country : Singapore}

^{LEOW HOCK MENG EDMUND S1597537G Company Secretary}

^{Appointed on : 26/01/2004}

^{Street : 17 WATTEN VIEW}

^{WATTEN ESTATE}

^{Town : SINGAPORE}

^{Postcode : 287135}

^{Country : Singapore}

^{JESWANT SINGH S/O DARSHAN SINGH S2560579I Director}

^{Appointed on : 20/02/2004}

^{Street : 5 HAIG ROAD}

^#11-457

^{Town : SINGAPORE}

^{Postcode : 430005}

^{Country : Singapore}

ACTIVITY (IES)

^{TRADING COMPANIES Code: 22190}

^{FERTILIZERS - WHSLE And MFRS Code: 8710}

^{BASED ON ACRA'S RECORD AS AT 30/04/2007}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

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 Databases

SHAREHOLDERS(S)

^{FLETCHER INTERNATIONAL LTD. 164,902 Company}

^{Street : IDB HOUSE, EAST BAY STREET}

^{Town : NASSAU}

^{Postcode : -}

^{Country : Bahamas}

HOLDING COMPANY

^{FLETCHER INTERNATIONAL LTD. UF35831C % : 100}

SUBSIDIARY (IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality : AVERAGE

Liquidity : SUFFICIENT

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: "MILD" UNCERTAINTIES "MILD" UNCERTAINTIES}

^{Date Account Lodged: 06/02/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp 3,252,134 -}

^{Total Fixed Assets: 3,252,134 -}

^{Inventories: 2,483,003 -}

^{Cash, Banks, Securities: 6,481,681 1,499,993}

^{Other current assets: 3,165,252 -}

^{Total Current Assets: 12,129,936 1,499,993}

^{TOTAL ASSETS: 15,382,070 1,499,993}

^{--- LIABILITIES ---}

^{Equity capital: 99,971 1}

^{Profit & loss Account: 12,620,266 -16,695}

^{Total Equity: 12,720,237 -16,694}

^{Trade Creditors: 2,631,627 -}

^{Advanced payments: 1,500,000}

^{Other Short term Liab.: 2,805 15,254}

^{Total short term Liab.: 2,661,833 1,516,687}

^{Prepay. & Def. charges: 27,401 1,433}

^{TOTAL LIABILITIES: 2,661,833 1,516,687}

PROFIT & LOSS ACCOUNT

^{Net Sales 216,628,820 -}

^{Purchases,Sces & Other Goods: 203,718,560 -}

^{Gross Profit: 12,910,260 -}

^{NET RESULT BEFORE TAX: 12,636,961 -16,695}

^{Net income/loss year: 12,636,961 -16,695}

^{Interest Paid: 148,786 -}

^{Financial Income: 151,931 -}

RATIOS

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

^{Net result / Turnover(%): 0.06 -}

^{Stock / Turnover(%): 0.01 -}

^{Net Margin(%): 5.83 -}

^{Return on Equity(%): 99.35 100.01}

^{Return on Assets(%): 82.15 -1.11}

^{Net Working capital: 9468103.00 -16694.00}

^{Cash Ratio: 2.44 0.99}

^{Quick Ratio: 2.44 0.99}

^{Current ratio: 4.56 0.99}

^{Leverage Ratio: 0.21 -90.85}

^{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}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{AUDITORS' REPORT:}

^{THE COMPANY HAS NOT MAINTAINED ADEQUATE AND DOCUMENTS THAT WOULD ALLOW THE MATCHING OF SALES AND PURCHASES OF FERTILIZER PRODUCTS TRANSACTED BY THE COMPANY IN THE FINANCIAL YEAR. IN ADDITION, NO INVENTORY CONTROL SYSTEM WAS MAINTAINED. WE ARE NOT ABLE TO ADOPT SATISFACTORY ALTERNATIVE AUDITING PROCEDURES TO SATISFY OURSELVES THAT PROPER CUT OFF FOR SALES AND PURCHASES WAS CARRIED OUT AT 31 DECEMBER 2005, THAT THERE WERE NO CLOSING INVENTORIES AS AT 31 DECEMBER 2005, AND THAT THE GROSS PROFIT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2005 AMOUNTED TO USD12,910,260 IS FAIRLY STATED.}

^{THE FINANCIAL CONDITION OF THE COMPANY WAS DEEMED TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH TOTAL EQUITY SURGING BY 762.96 TIMES AMOUNTING TO USD12,720,237 (2004: -USD16,694). THIS WAS CONTRIBUTED BY HIGHER RETAINED EARNINGS BROUGHT FORWARD OF USD12,620,266 (2004: -USD16,695).}

^LEVERAGE:

^{THE LEVERAGE RATIO WAS COMPUTED AT 0.21 TIMES (2004: -90.85 TIMES), INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS AMOUNTED TO USD2,631,627 (2004: NIL).}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE COMPANY WAS FAIRLY HEALTHY. BOTH THE QUICK AND CURRENT RATIOS WERE ADEQUATE AT 2.44 TIMES (2004: 0.99 TIMES) AND 4.56 TIMES (2004: 0.99 TIMES) RESPECTIVELY.}

^{THIS WAS IN TANDEM WITH THE NET WORKING CAPITAL, WHICH ROSE NOTABLY TO USD9,468,103 (2004: -USD16,694).}

^{PROFITABILITY:}

^{REVENUE FOR FY2005 REGISTERED AT USD216,628,820 (2004: NIL). NET INCOME TOTALLED USD12,636,961 (2004: -USD16,695).}

^{AS A RESULT, NET MARGIN WAS COMPUTED AT 5.83 TIMES (2004: NIL).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE IMPROVING LIQUIDITY, REVENUES AND NET INCOMES, AND IF TRADE RECEIVABLES WERE FORTHCOMING.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{TAX EXPENSES}

^{THERE ARE NO PROVISIONS FOR CURRENT AND DEFERRED TAX EXPENSES IN RESPECT OF THE CURRENT FINANCIAL YEAR. ALL THE BUSINESS ACTIVITIES OF THE COMPANY DURING THE FINANCIAL YEAR WERE CONDUCTED OUTSIDE SINGAPORE AND IN THE DIRECTORS' OPINION, ALL INCOME ARISING FROM SUCH ACTIVITIES ARE FOREIGN SOURCED INCOME FOR SINGAPORE TAX PURPOSES. ALL THE DIRECTORS CONFIRMED THAT NONE OF SUCH INCOME WAS RECEIVED IN SINGAPORE UP TO THE DATE OF THIS REPORT.}

^{PERFORMANCE GUARANTEE}

^{AT THE BALANCE SHEET DATE, THERE WAS BANKERS' GUARANTEE TO THIRD PARTIES AMOUNTING TO USD993,800 (2004: NIL).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 29/12/2003 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "DREYMOOR FERTILIZERS OVERSEAS PTE LTD".}

^{AS AT 30/04/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 164,902 SHARES OF A VALUE OF S$164,902.}

^{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)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITY IS TO CARRY ON THE BUSINESS OF TRADING IN FERTILIZER PRODUCTS AND THE PROVISION OF DEMURRAGE, STORAGE AND INSPECTION SERVICES.}

^{THE COMPANY IS A WHOLLY OWNED SUBSIDIARY OF FLETCHER INTERNATIONAL LTD, A NOMINEE COMPANY INCORPORATED IN BAHAMAS, WHICH IS THE ULTIMATE HOLDING COMPANY.}

^{FROM THE RESEARCH CONDUCTED, SUBJECT IS NOT LISTED IN THE SINGAPORE LOCAL DIRECTORIES AS WELL AS THE INTERNET. AS SUCH, WE WERE UNABLE TO GATHER ANY TRADE INFORMATION RELATED TO SUBJECT.}

^{IN ADDITION, YOUR PROVIDED CONTACT NUMBERS, TEL: 007-495-7219020 AND FAX: 007-495-7219022 ARE NOT LOCAL SINGAPORE NUMBERS.}

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

^{REGISTERED ADDRESS:}

^{1 TEMASEK AVENUE}

^#27-01

^{MILLENIA TOWER}

^{SINGAPORE 039192}

^{DATE OF CHANGE OF ADDRESS: 29/12/2003}

^{-- UNABLE TO VERIFY IF THIS IS THE BUSINESS ADDRESS AS WE WERE UNABLE TO CONTACT SUBJECT.}

^WEBSITE:

^{* NA}

^EMAIL:

^{* NA}

MANAGEMENT

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

^{1) JOHN JOSPEH RYAN, AN AMERICAN}

^{- BASED IN SWITZERLAND}

^{2) OW YEW KUM, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE}

^{COMMSCOPE SOLUTIONS SINGAPORE PTE LTD}

^{3) JESWANT SINGH S/O DARSHAN SINGH, A SINGAPORE PERMANENT RESIDENT}

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

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