MIRA INFORM REPORT

Report Date :

02.11.2007

IDENTIFICATION DETAILS

Name :	ABB INDUSTRY PTE LTD
Registered Office :	^2 Ayer Rajah Crescent, Ayer Rajah Complex,^Singapore –^139935
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^06/05/1970
Com. Reg. No.:	^197000334W
Legal Form :	^Pte Ltd
Line of Business :	Production, Importing and Exporting of Electrical and Tele Communication Equipment.

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 :	Exists

Subject Company

ABB INDUSTRY PTE LTD

Line Of Business 

PRODUCTION, IMPORTING AND EXPORTING OF ELECTRICAL AND TELE COMMUNICATION EQUIPMENT.

Parent Company

ABB HOLDING PTE LTD

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

2006

COMPANY

Sales : S$420,600,000

Networth : S$55,358,000

Paid-Up Capital : S$6,845,000

Net result : S$25,465,000

Net Margin(%) : 6.05

Return on Equity(%) : 46.00

Leverage Ratio : 4.31

COMPANY IDENTIFICATION

^{Subject Company : ABB INDUSTRY PTE LTD}

^{Former Name : ABB INDUSTRIAL SYSTEMS PTE LTD}

^{Business Address : 2 AYER RAJAH CRESCENT}

^{AYER RAJAH COMPLEX}

^{Town : SINGAPORE}

^{Postcode : 139935}

^{County : -}

^{Country : Singapore}

^{Telephone : 6776 5711}

^{Fax : 6778 0222/68610037}

^{ROC Number : 197000334W}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{ABB INDUSTRIAL SYSTEMS PTE LTD DATE OF CHANGE OF NAME: 20/02/1995}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 06/05/1970}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 420,600,000}

^{Networth : 55,358,000}

^{Capital : 7,000,000}

^{Paid-Up Capital : 6,845,000}

^{Employees : -}

^{Net result : 25,465,000}

^{Share value : -}

^{Auditor : ERNST & YOUNG}

REFERENCES

^{Credit Requested : USD90,000}

^{Credit Opinion : RECOMMEND ON USD90,000}

^{Credit Rating : MINIMAL RISK}

^{Litigation : Yes}

^{Company status : TRADING}

^{Started : 06/05/1970}

PRINCIPAL(S)

^{SIM BOON KIAT S1307941B Director}

DIRECTOR(S)

^{SIM BOON KIAT S1307941B Director}

^{Appointed on : 31/03/1995}

^{Street : 31 JALAN WARINGIN}

^{Town: SINGAPORE}

^{Postcode: 418034}

^{Country: Singapore}

^{LIM SAY WAH S0140527F Company Secretary}

^{Appointed on : 23/08/2004}

^{Street : 55 JALAN JARAK}

^{SELETAR HILLS ESTATE}

^{Town: SINGAPORE}

^{Postcode: 809217}

^{Country: Singapore}

^{KAM CHIN TECK WINSTON S0163456I Director}

^{Appointed on : 28/02/2005}

^{Street : 370E ALEXANDRA ROAD}

^#05-05

^{THE ANCHORAGE CONDOMINIUM}

^{Town: SINGAPORE}

^{Postcode: 159958}

^{Country: Singapore}

^{TOO TIAN CHONG S2601589H Director}

^{Appointed on : 04/08/2006}

^{Street : 70 MARINE PARADE ROAD}

^#08-26

^{COTE D'AZUR}

^{Town: SINGAPORE}

^{Postcode: 449302}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{YVONNE CHOO S0090447C}

^{JORGEN CENTERMAN DP209900}

^{PAUL ZIEGLER 9766102}

^{POLLARD JOHN HENRY THOMAS H616853}

^{DINESH CHANDRA PALIWAL Z1021801}

^{LEONG CHEE FOON S2575926E}

ACTIVITY(IES)

^{MACHINERY Code:13260}

^{ELECTRICAL CONTRACTORS-COMMERCIAL Code:7568}

^{CONTROL SYSTEMS And REGULATORS Code:5565}

^{BUILDING MATERIALS Code:2920}

^{COMMUNICATION EQUIPMENT Code:5020}

^{BASED ON ACRA'S RECORD AS AT 31/10/2007}

^{1) WHOLESALE OF INDUSTRIAL MACHINERY AND EQUIPMENT; MANUFACTURE OF SWITCHGEARS SERVICES)}

CHARGES

^{Date: 14/03/2003}

^{Comments : CHARGE NO: C200301171}

^{SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): JPMORGAN CHASE BANK, N.A.}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{JPMORGAN CHASE BANK}

^{NORDEA BANK FINLAND PLC}

^{SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)}

^{CITIBANK N.A.}

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED}

SHAREHOLDERS(S)

^{ABB HOLDINGS PTE LTD 6,845,000 Company}

^{Street : 2 AYER RAJAH CRESCENT}

^{AYER RAJAH COMPLEX}

^{Town: SINGAPORE}

^{Postcode: 139935}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{TAYLOR INSTRUMENT PTY LTD 25,000}

^{COMBUSTION ENGINEERING AUSTRALIA PT 25,000}

HOLDING COMPANY

^{ABB HOLDINGS PTE LTD 198700096D % : 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)

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS02762/2003}

Defendant ABB INDUSTRY PTE LTD ROC # : 197000334W

FINANCIAL ELEMENTS

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

^{Date Account Lodged: 31/07/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp 68,000 -}

^{Intangible Fixed Assets: 1,459,000 1,459,000}

^{Tangible Fixed Assets: 2,350,000 2,750,000}

^{Investments 5,716,000}

^{Total Fixed Assets: 3,877,000 9,925,000}

^{Inventories: 113,926,000 109,570,000}

^{Receivables: 105,004,000 85,943,000}

^{Cash,Banks, Securitis: 37,462,000 44,212,000}

^{Other current assets: 27,224,000 17,086,000}

^{Total Current Assets: 283,616,000 256,811,000}

^{TOTAL ASSETS: 287,493,000 266,736,000}

^{--- LIABILITIES ---}

^{Equity capital: 6,845,000 6,845,000}

^{Reserves: -4,000 -22,000}

^{Profit & lost Account: 48,517,000 39,678,000}

^{Total Equity: 55,358,000 46,501,000}

^{L/T deffered taxes: 90,000}

^{Other long term Liab.: 691,000 5,592,000}

^{Total L/T Liabilities: 691,000 5,682,000}

^{Trade Creditors: 176,385,000 172,222,000}

^{Prepay. & Def. charges: 15,441,000 12,739,000}

^{Advanced payments: 7,256,000 3,945,000}

^{Provisions: 8,253,000 6,571,000}

^{Other Short term Liab.: 24,108,000 19,076,000}

^{Total short term Liab.: 231,443,000 214,553,000}

^{TOTAL LIABILITIES: 232,134,000 220,235,000}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 420,600,000 373,543,000}

^{Purchases,Sces & Other Goods: 339,785,000 307,089,000}

^{Gross Profit: 80,815,000 66,454,000}

^{NET RESULT BEFORE TAX: 31,061,000 28,257,000}

^{Tax : 5,596,000 5,651,000}

^{Net income/loss year: 25,465,000 22,606,000}

^{Interest Paid: 14,000 -}

^{Depreciation: 1,149,000 1,209,000}

^{Dividends: 16,626,000 20,000,000}

^{Directors Emoluments: - 968,000}

^{Wages and Salaries: 43,145,000 38,814,000}

^{Financial Income: 38,000 26,000}

RATIOS

^{31/12/2006 31/12/2005}

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

^{Stock / Turnover(%): 0.27 0.29}

^{Net Margin(%): 6.05 6.05}

^{Return on Equity(%): 46.00 48.61}

^{Return on Assets(%): 8.86 8.48}

^{Dividends Coverage: 1.53 1.13}

^{Net Working capital: 52173000.00 42258000.00}

^{Cash Ratio: 0.16 0.21}

^{Quick Ratio: 0.62 0.61}

^{Current ratio: 1.23 1.20}

^{Receivables Turnover: 89.88 82.83}

^{Leverage Ratio: 4.31 4.89}

^{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)/1000}

^{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

^{NOTE: DUE TO A DISCREPENCY BETWEEN THE FINANCIAL STATEMENTS. THE TOTAL LIABILITIES FIGURE FOR THE FY 2006 IS UNDERSTATED BY S$1,000. HENCE THE BALANCE SHEET COULD NOT BE BALANCE.}

^{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 19.04% FROM S$46,501,000 IN 2005 TO S$55,358,000 IN 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$48,517,000 (2005: S$39,678,000); A RISE OF 22.27% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 76.21% (2005: 80.27%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$176,385,000 (2005: S$172,222,000).}

^{THE BREAKDOWN IS AS FOLLOWS:}

^{-TRADE PAYABLES- 2006: S$120,162,000 (2005: S$89,173,000)}

^{-AMOUNTS DUE TO RELATED COMPANIES- 2006: S$56,223,000 (2005: S$83,049,000)}

^{IN THE LONG-TERM SUBJECT WAS WHOLLY FINANCED BY OTHER LONG-TERM LIABILITIES WHICH CONSISTED OF:}

^{-AMOUNT DUE TO HOLDING COMPANY- 2006: S$691,000 (2005: S$5,592,000)}

^{IN ALL, LEVERAGE RATIO FELL FROM 4.89 TIMES TO 4.31 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 1.20 TIMES AND QUICK RATIO IMPROVED TO 0.62 TIMES FROM 0.61 TIMES IN FY 2005.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 23.46% FROM S$42,258,000 IN FY 2005 TO S$52,173,000.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-FIXED DEPOSITS- 2006: S$23,015,000 (2005: S$25,375,000)}

^{-CASH AND BANK BALANCES- 2006: S$14,447,000 (2005: S$18,837,000)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 12.59% FROM S$373,543,000 IN FY 2005 TO S$420,600,000. NET PROFIT INCREASED BY 12.64% TO S$25,465,000 (2005: S$22,606,000). NET MARGIN REMAINED CONSTANT AT 6.05% (2005: 6.05%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, ITS INTEREST COVERAGE WAS HEALTHY CONSIDERING THAT ITS INTEREST EXPENSES WERE LOW AT S$14,000 IN FY 2006 (2005: NIL).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-DEFERRED TAXATION ASSETS - 2006: S$68,000 (2005: NIL)}

^{NOTES TO THE FINANCIAL STATEMENT:}

^{INVESTMENT IN SUBSIDIARY:}

^{THE COMPANY DISPOSED OF ENTRELEC ASIA PTE LTD SINGAPORE, A WHOLLY OWNED SUBSIDIARY, ON 30 NOVEMBER 2006 AT ITS CARRYING VALUE. THE DISPOSAL CONSIDERATION WAS OFFSET AGAINST AMOUNT DUE TO HOLDING COMPANY.}

^GUARANTEES:

^{CONTINGENT LIABILITIES NOT PROVIDED FOR IN THE FINANCIAL STATEMENTS:}

^{-GUARANTEES AND LETTER OF CREDIT(UNSECURED)- 2006: S$46,756,000 (2005: S$45,035,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 06/05/1970 AS A LIMITED PRIVATE COMPANY AND WAS TRADING UNDER THE NAMETSYLE OF "ABB PROCESS AUTOMATION EAST ASIA PTE LTD".}

^{SUBSEQUENTLY ON 18/03/1994, IT CHANGED TO THE NAMESTYLE OF "ABB INDUSTRIAL SYSTEMS PTE LTD".}

^{SUBSEQUENTLY ON 20/02/1995, SUBJECT CHANGED ITS NAME TO "ABB INDUSTRY PTE LTD". AS AT 28/05/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 6,845,000 SHARES, OF A VALUE OF S$6,845,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF INDUSTRIAL MACHINERY AND EQUIPMENT; MANUFACTURE OF SWITCHGEARS}

^{2) ELECTRICAL WORKS; ELECTRICAL WORKS INSTALLATION (INCLUDING ENGINEERING, ARCHITECTURAL SERVICES)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE:}

^{1) THE PRODUCTION AND SALE OF PROCESS CONTROL HARDWARE AND SOFTWARE AND THE SALE OF SPARE PARTS WHICH INCLUDES TOTAL AUTOMATION AND DRIVES SOLUTIONS FOR THE PROCESS INDUSTRIES INCLUDING THE PULP AND PAPER, CHEMICAL, METAL, BUILDING METALS, MARINE, OIL AND GAS AND FOOD AND BEVERAGE INDUSTRIES;}

^{2) MARKETING OF ABB'S RANGE OF STANDARD PRODUCTS AND SYSTEMS FOR THE BUILDING AND CONSTRUCTION INDUSTRY;}

^{3) SALES AND SERVICING OF TURBOCHARGES;}

^{4) SERVICE AND REPAIR ALL TYPES OF ELECTRICAL AND MECHANICAL ROTATING MACHINES AND POWER DISTRIBUTION EQUIPMENT;}

^{5) INSTALLATION AND COMMISSIONING OF ELECTRICAL BASED SYSTEM.}

^{6) UNDERTAKING OF ELECTRIFICATION PROJECTS INCLUDING SUPPLY OF COMPLETE RANGE OF SYSTEMS AND PRODUCTS FOR POWER GENERATOR, TRANSMISSION AND DISTRIBUTIONS;}

^{7) THE SALE OF DISTRIBUTED CONTROL SYSTEMS, INSTRUMENTS, ANALYTICAL PRODUCTS AND THE PROVISION OF RELATED ENGINEERING SERVICES;}

^{8) MANUFACTURE AND SALE OF DISTRIBUTION TRANSFORMERS AND COMPONENTS;}

^{9) PROVISION OF SHARED CORPORATE SUPPORT SERVICES IE ADMINISTRIATIVE SUPPORT SERVICES, PROVISION OF MANAGEMENT SERVICES; SALES AND PROJECTS BUSINESSES, IE MARKETING FUNCTION.}

^{10) IMPORTERS AND EXPORTERS OF AND SALE OF ELECTRICAL AND TELECOMMUNICATION EQUIPMENT AND COMPONENTS.}

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED: SUBJECT IS A LEADER IN POWER AND AUTOMATION TECHNOLOGIES THAT ENABLE UTILITY AND INDUSTRY CUSTOMERS TO IMPROVE THEIR PERFORMANCE WHILE LOWERING ENVIRONMENTAL IMPACT. SUBJECT IS STRUCTURED INTO THE FOLLOWING BUSINESS AREAS:}

^{*AUTOMATION TECHNOLOGIES}

^{-PROCESS MANAGEMENT & AUTOMATION FOR PULP, PAPER, METALS & MINERALS; PETROLEUM & CHEMICALS; OIL & GAS INDUSTRIES}

^{-SYSTEM ENGINEERING AND INTEGATION}

^{-TURBOCHARGING}

^{-MARINE SERVICES}

^{-ABB PROFESSIONAL SERVICES}

^{-TELECOMMUNICATION & PRODUCT MANUFACTURING}

^{-CRANES & HABOUR SYSTEMS}

^{-CONTROL SYSTEMS}

^{-INSTRUMENTATION & METERING}

^-ANALYTICS

^{-AC/DC MOTORS}

^{-DRIVES & POWER ELECTRONICS}

^{-UNINTERRUPTABLE POWER SUPPLY}

^{-LOW VOLTAGE SWITCHGEARS}

^{-LOW VOLTAGE BREAKERS}

^{-LINE PROTECTION DEVICES}

^{-ELECTRICAL WIRING ACCESSORIES}

^{-ELECTRICAL INSTALLATION BUS}

^-ENCLOSURES

^{-SWITCHES & FUSEGEAR}

^{-REGIONAL SPARE PARTS CENTER}

^{-CUSTOMER SERVICE}

^{*POWER TECHNOLOGIES}

^{-HIGH VOLTAGE AIR & GAS INSULATED SWITCHGEARS}

^{-T&D RETROFIT & SUPPORT}

^{-ENERGY INFORMATION SYSTEMS}

^{-MEDIUM VOLTAGE AIR & GAS INSULATED PANELS/SWITCHBOARDS}

^{-MEDIUM VOLTAGE INDOOR CIRCUIT BREAKERS}

^{-MEDIUM VOLTAGE INDOOR EQUIPMENT}

^{-RING MAIN UNITS & COMPACT SWITCHGEARS}

^{-COMPACT SECONDARY SUBSTATIONS (KIOSKS)}

^{-MEDIUM VOLTAGE SURGE ARRESTORS}

^{-NETWORK PROTECTION PRODUCTS}

^{-OIL-IMMERSED DISTRIBUTION TRANSFORMERS}

^{-LARGE DISTRIBUTION TRANSFORMERS}

^{-SPECIAL APPLICATION TRANSFORMERS}

^{-DRY-TYPE DISTRIBUTION TRANSFORMERS}

^{-POWER PLANT AUTOMATION SYSTEMS}

^{-SUBSTATION AUTOMATION SYSTEMS}

^{-POWER SYSTEMS COMMUNICATION}

^{-MODULAR SUBSTATION}

^{-SYSTEM ENGINEERING AND INTEGRATION}

^{*CORPORATE SERVICES}

^{-HUMAN RESOURCE}

^{-TREASURY & ACCOUNTING}

^{-INFORMATION SYSTEMS}

^{-SUPPLY MANAGEMENT & LOGISTICS}

^{TRADE NAMES}

^{- ABB -- VARIABLE SPEED DRIVES}

^MARKETS

^{- FOR POWER GENERATION BUSINESS: ASIA PACIFIC REGION, ABB GROUP HAS MARKET PRESENCE IN MALAYSIA, TAIWAN, INDIA AUSTRALIA, CHINA,SOUTH KOREA AND SOME OTHER COUNTRIES.}

^{- FOR SYSTEM INTEGRATIONS, CLIENTS IN ASIA PACIFIC'S MAIN CONTACT POINT IS STILL ABB INDUSTRY PTE LTD IN SINGAPORE.}

^{TERMS OF PAYMENT}

^{- TRADE AND OTHER RECEIVABLES: 30-90 DAY TERMS}

^{- TRADE AND OTHER PAYABLES : 30-90 DAY TERMS}

^{BCA REGISTERED WORK HEADS/SUPPLY HEADS:}

^{- ME01 AIR-CONDITIONING, REFRIGERATION & VENTILATION WORKS-- L1 ($100,000)}

^{- ME02 BUILDING AUTOMATION, INDUSTRIAL & PROCESS CONTROL SYSTEMS-- L2 ($500,000)}

^{- ME04 COMMUNICATION & SECURITY SYSTEMS--L1 ($100,000)}

^{- ME05 ELECTRICAL ENGINEERING--L5 ($10 MILLION)}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES}

^{- ASSOCIATION OF SINGAPORE MARITIME INDUSTRIES}

^{- SWEDISH BUSINESS ASSOCIATION OF SINGAPORE}

^{- SINGAPORE MANUFACTURERS' FEDERATION}

^{- ASPRI-ASSOCIATION OF PROCESS INDUSTRY}

^{- FIELDBUS FOUNDATION MARKETING SOCIETY SINGAPORE}

^{QUALITY ASSESSMENT}

^{- ISO 9001}

^{- ISO 14001}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 02/11/2007.}

^{THE COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF ABB HOLDINGS PTE LTD WHICH IS INCORPORATED IN SINGAPORE. ITS ULTIMATE HOLDING COMPANY IS ABB LTD, INCORPORATED IN SWITZERLAND.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{2 AYER RAJAH CRESCENT}

^{AYER RAJAH COMPLEX}

^{SINGAPORE 139935}

^{DATE OF CHANGE OF ADDRESS: 27/01/2004}

^{- PREMISE OWNED BY: ABB SUPPORT PTE LTD}

^{OTHER BUSINESS ADDRESSES:}

^{2 TUAS LANE}

^{SINGAPORE 638611}

^{--TEL: 6861 9722; FAX: 6861 8126/6861 4355}

^{--TURBOCHARGERS & SERVICE DIVISION}

^{1 GUL CRESCENT}

^{SINGAPORE 629517}

^{--TEL: 6861 2954; FAX: 6861 0037}

^{--TRANSFORMER MANUFACTURING}

^{WEBSITE: www.abb.com.sg}

^{EMAIL: sgind@sg.abb.com}

MANAGEMENT

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

^{1) KAM CHIN TECK WINSTON, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{ABB TRANSFORMERS PTE LTD}

^{ABB AGENCIES PTE LTD}

^{ABB POWER PTE LTD}

^{2) SIM BOON KIAT, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{ABB SUPPORT PTE LTD}

^{ABB TRANSFORMERS PTE LTD}

^{ABB AGENCIES PTE LTD}

^{ABB INSTALLATION MATERIALS (EAST ASIA) PTE LTD}

^{3) TOO TIAN CHONG, A SINGAPORE PERMANENT RESIDENT}

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

^{4) DINESH CHANDRA PALIWAL, AN INDIAN}

^{- BASED IN SWITZERLAND.}

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

• MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
• HIGH QUALITY COMPETITIVENESS IN ASIA
• EXCELLENT BUSINESS CLIMATE
• POLITICAL STABILITY.

WEAKNESSES

• SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
• AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
• GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
• BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE DECLINED BY 7.5% IN Q1 2007. EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 7.4%. SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, INDUSTRIAL AND CONSTRUCTION MACHINERY REPORTED DECLINES OF 11.6% TO 23.8%.

HOWEVER, WHOLESALERS OF FOOD, BEVERAGES AND TOBACCO REGISTERED HIGHER TURNOVER OF 5.4%.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE IN QUARTER 1 2007 FELL BY 7.6%. EXCLUDING PETROLEUM, FOREIGN SALES DECLINED BY 8.0%. MOST WHOLESALE SECTORS REPORTED LOWER OVERSEAS RECEIPTS IN QUARTER 1 2007 COMPARED TO THE PREVIOUS QUARTER, EXCEPT HOUSEHOLD EQUIPMENT AND FURNITURE SECTOR. SHIP CHANDLERS & BUNKERING REPORTED THE LARGEST DECLINE OF 18.3% IN QUARTER 1 2007, FOLLOWED BY FOOD BEVERAGES & TOBACCO SECTOR OF 17.7%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE MARGINALLY BY 0.7% IN QUARTER 2 2007, COMPARED TO QUARTER 2 2006. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.1%. SALES OF OPTICAL GOODS & BOOKS, FURNITURE & HOUSEHOLD EQUIPMENT AND SUPERMARKETS ENJOYED STRONG GROWTHS OVER A YEAR AGO. PROVISION & SUNDRY SHOPS, WATCHES AND JEWELLERY, DEPARTMENT STORES AND WEARING APPAREL & FOOTWEAR SECTORS ALSO REPORTED HIGHER SALES OF 4.35 TO 5.9% RESPECTIVELY.

HOWEVER, RETAILERS OF MOTOR VEHICLES, FOOD & BEVERAGES, TELECOMMUNICATIONS APPARATUS & COMPUTERS AND PETROL SERVICES STATIONS REPORTED LOWER SALES.

OUTLOOK

GENERALLY, WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD & BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC.

RETAIL TRADE FIRMS ANTICIPATE BUSINESS TO BE LESS BRISK FOR THE NEXT 6 MONTHS. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

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.	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