MIRA INFORM REPORT

Report Date :

01.10.2007

IDENTIFICATION DETAILS

Name :	ADM COCOA PTE LTD
Registered Office :	^342 Jalan Boon Lay,^Singapore^–^619527
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^16/05/1984
Com. Reg. No.:	^198401772C
Legal Form :	^Pte Ltd
Line of Business :	Manufacture and Trading of Cocoa Product

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 :	Exists

Subject Company

ADM COCOA PTE LTD

Line Of Business 

MANUFACTURE AND TRADING OF COCOA PRODUCT

Parent Company

ARCHER DANIELS MIDLAND SINGAPORE

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

Sales : S$239,137,000

Networth : S$60,985,000

Paid-Up Capital : S$31,300,000

Net result : S$925,000

Net Margin(%) : 0.39

Return on Equity(%) : 1.52

Leverage Ratio : 1.34

COMPANY IDENTIFICATION

^{Subject Company : ADM COCOA PTE LTD}

^{Former Name : DE ZAAN FAR EAST PTE. LTD.}

^{Business Address : 342 JALAN BOON LAY}

^{Town : SINGAPORE}

^{Postcode : 619527}

^{County : -}

^{Country : Singapore}

^{Telephone : 6264 2611}

^{Fax : 6265 616 / 62664289}

^{ROC Number : 198401772C}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{DE ZAAN FAR EAST PTE. LTD. DATE OF CHANGE OF NAME: 08/05/1997}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 16/05/1984}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : S$239,137,000}

^{Networth : S$60,9855,000}

^{Capital : S$32,000,000}

^{Paid-Up Capital : 31,300,000}

^{Employees : 176}

^{Net result : S$925,000}

^{Share value : 1}

^{Auditor : ERNST & YOUNG}

REFERENCES

^{Litigation : Yes}

^{Company status : TRADING}

^{Started : 16/05/1984}

PRINCIPAL(S)

^{YU HUNG YEN STEPHEN 701570701 Director}

DIRECTOR(S)

^{YU HUNG YEN STEPHEN 701570701 Director}

^{Appointed on : 14/11/1997}

^{Street : 11 GILSTEAD ROAD}

^#07-03

^{MORIMASA GARDENS}

^{Town : SINGAPORE}

^{Postcode : 309065}

^{Country : Singapore}

^{MATTHEW JOHN MORGENROTH F2372490K Director}

^{Appointed on : 03/08/1998}

^{Street : 71 MCNAIR ROAD}

^TOWNERVILLE

^{Town : SINGAPORE}

^{Postcode : 328549}

^{Country : Singapore}

^{ADRIAN CHAN PENGEE S1658599H Company Secretary}

^{Appointed on : 26/09/1997}

^{Street : 700 LORONG 1 TOA PAYOH}

^#08-02

^{TRELLIS TOWERS}

^{Town : SINGAPORE}

^{Postcode : 319773}

^{Country : Singapore}

^{YEONG CHYE S2592486Z Director}

^{Appointed on : 03/08/1998}

^{Street : 22 WILBY ROAD}

^#05-19

^{THE TESSARINA}

^{Town : SINGAPORE}

^{Postcode : 276306}

^{Country : Singapore}

^{LUN CHEE LEONG S7003795E Company Secretary}

^{Appointed on : 19/01/2005}

^{Street : 60 LORONG 4 TOA PAYOH}

^#23-117

^{Town : SINGAPORE}

^{Postcode : 310060}

^{Country : Singapore}

^{JOSEPH NOEL KENNY M 998007 Director}

^{Appointed on : 15/10/2004}

^{Street : SARPHATIPARK 77 HS 1073 CT}

^{Town : AMSTERDAM}

^{Postcode : -}

^{Country : Netherlands}

FORMER DIRECTOR(S)

^{ROBERT HOBSON 034161721}

^{GOH SHING YEN CLAUDINE S7308639F}

ACTIVITY(IES)

^{COCOA Code:4735}

^{COCOA - BUTTER And POWER Code:4737}

^{BASED ON ACRA'S RECORD AS AT 26/09/2007}

^{1) MANUFACTURE OF COCOA AND CHOCOLATE POWDER FROM BEANS; MANUFACTURE OF COCOA PRODUCTS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

^{Date : 03/04/2007}

^{Tax rate : 10}

^{Site Address : 342 JALAN BOON LAY}

^{Town : SINGAPORE}

^{Postcode : 619527}

^{Country : Singapore}

^{Annual Value : 1,395,000}

* TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

* TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER/OWNED BY COMPANY.

* FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

BANKERS

^{ABN AMRO BANK N.V.}

^{CITIBANK N.A.}

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED}

^{BANK OF AMERICA NATIONAL ASSOCIATION}

SHAREHOLDERS(S)

^{ARCHER DANIELS MIDLAND SINGAPORE 31,300,000 Company}

^{Street : 1 TEMASEK AVENUE}

^#27-01

^{MILLENIA TOWER}

^{Town : SINGAPORE}

^{Postcode : 039192}

^{Country : Singapore}

HOLDING COMPANY

^{ARCHER DANIELS MIDLAND SINGAPORE 199502653W % : 100}

SUBSIDIARY(IES)

^{ADM COCOA (SABAH) SDN BHD}

^{PT ADM COCOA}

PAYMENT HISTORY AND EXPERIENCES

Trade Morality : AVERAGE

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation : AVERAGE}

LITIGATION(S)

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

^{Case Number: DCS03322/2006}

Defendant ADM COCOA PTE LTD ROC # : 198401772C

FINANCIAL ELEMENTS

^{Audit Qualification: UNQUALIFIED UNQUALIFIED UNQUALIFIED}

^{(CLEAN) (CLEAN) (CLEAN)}

^{Date Account Lodged: 12/10/2006}

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

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 50,958,000 44,719,000 30,926,000}

^{Investments 877,000 877,000 877,000}

^{Total Fixed Assets: 51,835,000 45,596,000 31,803,000}

^{Inventories: 51,642,000 69,572,000 73,898,000}

^{Receivables: 29,490,000 15,255,000 17,568,000}

^{Cash,Banks, Securitis: 96,000 2,503,000 1,519,000}

^{Other current assets: 9,710,000 6,047,000 22,191,000}

^{Total Current Assets: 90,938,000 93,377,000 115,176,000}

^{TOTAL ASSETS: 142,773,000 138,973,000 146,979,000}

^{--- LIABILITIES ---}

^{Equity capital: 31,300,000 31,300,000 31,300,000}

^{Reserves: 10,000 10,000 10,000}

^{Profit & lost Account: 29,675,000 28,750,000 19,759,000}

^{Total Equity: 60,985,000 60,060,000 51,069,000}

^{L/T deffered taxes: 2,580,000 3,180,000 4,886,000}

^{Total L/T Liabilities: 2,580,000 3,180,000 4,886,000}

^{Trade Creditors: 11,635,000 6,197,000 6,989,000}

^{Prepay. & Def. charges: 2,224,000 1,265,000 1,091,000}

^{Provisions: 1,330,000 2,480,000 -}

^{Other Short term Liab.: 64,019,000 65,791,000 82,944,000}

^{Total short term Liab.: 79,208,000 75,733,000 91,024,000}

^{TOTAL LIABILITIES: 81,788,000 78,913,000 95,910,000}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 239,137,000 223,432,000 219,219,000}

^{Purchases,Sces 226,480,000 207,109,000 200,277}

^{& Other Goods:}

^{Gross Profit: 12,657,000 16,323,000 18,942,000}

^{Result of ordinary operations 3,005,000 12,218,000 15,696,000}

^{NET RESULT BEFORE TAX: 325,000 9,765,000 14,493,000}

^{Tax : -600,000 774,000 2,813,000}

^{Net income/loss year: 925,000 8,991,000 11,680,000}

^{Interest Paid: 2,680,000 2,463,000 1,203,000}

^{Depreciation: 5,501,000 4,646,000 4,440,000}

^{Directors Emoluments: 646,000 548,000 450,000}

^{Wages and Salaries: 8,939,000 8,693,000 8,187,000}

^{Financial Income: 21,000 10,000 -}

RATIOS

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

^{Turnover per employee: 1358732.95 1269500.00 1245562.50}

^{Net result / Turnover(%): 0.00 0.04 0.05}

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

^{Stock / Turnover(%): 0.22 0.31 0.34}

^{Net Margin(%): 0.39 4.02 5.33}

^{Return on Equity(%): 1.52 14.97 22.87}

^{Return on Assets(%): 0.65 6.47 7.95}

^{Net Working capital: 11730000.00 17644000.00 24152000.00}

^{Cash Ratio: 0.00 0.03 0.02}

^{Quick Ratio: 0.37 0.23 0.21}

^{Current ratio: 1.15 1.23 1.27}

^{Receivables Turnover: 44.39 24.58 28.85}

^{Leverage Ratio: 1.34 1.31 1.88}

^{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

^{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 INCREASED BY 1.54% TO S$60,985,00 IN FY 2005, UP FROM S$60,060,000. THIS WAS DUE TO HIGHER REVENUE RESERVE BY 3.22% TO S$29,675,000 (2004: S$28,750,000).}

^LEVERAGE:

^{IN THE SHORT TERM, SUBJECT WAS LARGELY FINANCED BY OTHER SHORT-TERM LIABILITIES WHICH MADE UP 80.82% (2004: 86.87%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$64,019,000 IN FY 2005 (2004: S$65,791,000). OTHER SHORT-TERM LIABILITIES COMPRISED OF THE FOLLOWING:}

^{* LOAN FROM A RELATED COMPANY - 2005: S$62,212,000 (2004: S$64,248,000).}

^{* AMOUNT DUE TO IMMEDIATE HOLDING COMPANY - 2005: S$1,807,000 (2004: S$1,543,000)}

^{IN ADDITION, SUBJECT WAS ALSO FINANCED BY TRADE CREDITORS OF S$11,635,000 (2004: S$6,197,000) WHICH CONSISTED OF THE FOLLOWING:}

^{* AMOUNT DUE TO SUBSIDIARY COMPANY - 2005: NIL (2004: S$25,000)}

^{* AMOUNT DUE TO RELATED COMPANY - 2005: S$2,269,000 (2004: S$1,059,000)}

^{* THIRD PARTIES - 2005: S$9,366,000 (2004: S$5,113,000)}

^{IN ALL, LEVERAGE RATIO ROSE SLIGHTLY TO 1.34 TIMES, UP FROM 1.31 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION HAD WEAKENED AS SEEN FROM THE FALL IN NET WORKING CAPITAL FROM S$17,644,000 IN FY 2004 TO S$11,730,000 IN FY 2005. CURRENT RATIO DECLINED FROM 1.23 TIMES TO 1.15 TIMES IN FY 2005. HOWEVER, QUICK RATIO IMPROVED TO 0.37 TIMES, UP FROM 0.23 TIMES IN FY 2004.}

^{PROFITABILITY:}

^{SUBJECT POSTED AN INCREASE IN REVENUE BY 7.03% TO S$239,137,000 IN FY 2005, UP FROM S$223,432,000 IN FY 2004. BUT NET PROFIT SIGNIFICANTLY FELL BY 89.71% FROM S$8,991,000 TO S$925,000 IN FY 2005. THE FALL IN NET PROFIT COULD BE DUE TO THE INCREASE IN OTHER OPERATING EXPENSES FROM S$25,000 TO S$5,265,000 IN FY 2005. AS SUCH, NET MARGIN FELL TO 0.39% IN FY 2005 FROM 4.02%.}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED OR IMPROVED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING. IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 44 DAYS (2004: 25 DAYS).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITY:}

^{THE COMPANY'S BANK FACILITIES ARE SECURED BY A NEGATIVE PLEDGE OVER THE ASSETS OF THE COMPANY, A LETTER OF AWARENESS FROM THE ULTIMATE HOLDING COMPANY AND A LETTER OF UNDERTAKING TO MAINTAIN MINIMUM TANGIBLE ASSETS OF $37,000,000.}

^{* LETTERS OF CREDIT - 2005: NIL (2004: S$789,000)}

^{* BANKERS' GUARANTEES - 2005: S$594,000 (2004: S$490,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 16/05/1984 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "DE ZAAN FAR EAST PTE LTD".}

^{SUBSEQUENTLY ON 08/05/1997, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "ADM COCOA PTE LTD".}

^{AS AT 26/09/2007, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 31,310,000 SHARES, OF A VALUE OF S$31,310,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) MANUFACTURE OF COCOA AND CHOCOLATE POWDER FROM BEANS; MANUFACTURE OF COCOA PRODUCTS}

^{2) WHOLESALE OF COFFEE, COCOA AND TEA; TRADING OF COCOA PRODUCTS}

^{THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: CHOCOLATES AND COCOA}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE THE MANUFACTURE AND TRADING OF COCOA PRODUCTS.}

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

^ACTIVITIES:

^{* MANUFACTURE OF A FULL RANCE OF INGREDIENTS, COCOA AND CHOCOLATE PRODUCTS}

^PRODUCTS:

^{* CHOCOLATE AND COMPOUND COATINGS}

^{* CHOCOLATE DROPS & CHUNKS}

^{* CHOCOLATE ICE CREAM APPLICATION PRODUCTS:}

^{-ICE CREAM CHUNKS & CHIPS, ICE CREAM FLAVOR MIX, ICE CREAM COATINGS.}

^{* COCOA POWDERS}

^{* COCOA BUTTER}

^{* COCOA LIQUOR}

^{* RETAIL GROCERY}

^{* FOODSERVICE}

^{TRADE NAMES:}

^{* AMBROSIA}

^{* DE ZAAN--COCOA POWDER,COCOA BUTTER & LIQUOR}

^{* MERCKENS}

^{TERMS OF PAYMENT:}

^{* TRADE AND OTHER RECEIVABLES: 30-90 DAYS TERM}

^{* TRADE AND OTHER PAYABLES : 30 DAYS TERM}

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

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^{* FEDERATION OF COCOA COMMERCE}

^{QUALITY ASSESSMENT:}

^{* ISO 9001}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 01/10/2007.}

^{THE COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF ARCHER DANIELS MIDLAND SINGAPORE PTE LTD, INCORPORATED IN SINGAPORE. ITS ULTIMATE HOLDING COMPANY IS ARCHER-DANIELS-MIDLAND COMPANY, INCORPORATED IN THE UNITED STATES OF AMERICA.}

^{BACKGROUND OF THE ULTIMATE HOLDING COMPANY:}

^{ARCHER DANIELS MIDLAND COMPANY (ADM) IS ONE OF THE WORLD'S LARGEST AGRICULTURAL PROCESSORS OF SOYBEANS, CORN, WHEAT AND COCOA. WE WORK WITH FARMERS ACROSS THE WORLD TO TURN THESE CROPS INTO SOYMEAL AND OIL, CORN SWEETENERS, FLOUR, COCOA AND CHOCOLATE, ETHANOL AND BIODIESEL, AS WELL AS A WIDE PORTFOLIO OF OTHER VALUE-ADDED FOOD INGREDIENTS, ANIMAL NUTRITION AND INDUSTRIAL PRODUCTS.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: 176 (2004: 176; 2003: 169; 2002: 166; 2001: 175; 2000: 170)}

^{REGISTERED ADDRESS:}

^{168 ROBINSON ROAD}

^#25-01

^{CAPITAL TOWER}

^{SINGAPORE 068912}

^{DATE OF CHANGE OF ADDRESS: 01/10/2005}

^{BUSINESS ADDRESS:}

^{342 JALAN BOON LAY}

^{SINGAPORE 619527}

^{- OWNED PREMISE}

^{YOUR PROVIDED CONTACT NUMBER:}

^{- TEL: 6264211}

^{- INCORRECT}

^WEBSITES:

^{* www.admworld.com}

^EMAIL:

^-

MANAGEMENT

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

^{1) YU HUNG YEN STEPHEN, AN AMERICAN}

^{- BASED IN SINGAPORE.}

^{2) MATTHEW JOHN MORGENROTH, AN AMERICAN}

^{- BASED IN SINGAPORE.}

^{3) JOSEPH NOEL KENNY, AN IRISH}

^{- BASED IN HOLLAND.}

^{4) YEONG CHYE, A SINGAPORE PERMANENT RESIDENT}

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

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

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

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

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

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

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

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

ASSETS

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

WEAKNESSES

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

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMY GREW BY 6.1% IN QUARTER 1 OF 2007 AFTER A 6.6% GROWTH IN QUARTER 4 OF 2006. THE GROWTH MOMENTUM EASED SLIGHTLY TO 7.6% IN 1Q 2007, COMPARED WITH 7.9% A QUARTER EARLIER. GROWTH IN QUARTER 1 WAS LED BY THE FINANCIAL SERVICES AND CONSTRUCTION SECTORS. THE MANUFACTURING SECTOR CONTINUED TO EXPERIENCE A MODERATION IN GROWTH.

MANUFACTURING SECTOR INCREASED BY 4.3% IN 1Q 2007, DOWN FROM 7.7% IN THE PREVIOUS QUARTER. BOTH BIOMEDICAL MANUFACTURING (-5.0%) AND PRECISION ENGINEERING (-0.7%) CLUSTERS SAW LOWER PRODUCTION DURING THE QUARTER. THE ELECTRONICS CLUSTER, HOWEVER, RECOVERED FROM A 4.1% CONTRACTION IN 4Q 2006 TO REGISTER AN INCREASE OF 2.6% IN 1Q 2007. THE TRANSPORT ENGINEERING CLUSTER CONTINUED TO EXPAND STRONGLY AT 23%, FOLLOWING A 25% INCREASE IN 4Q 2006.

THE WHOLESALE AND RETAIL TRADE SECTOR EXPANDED 6.7% IN 1Q 2007 AFTER A 6.9 GROWTH IN 4Q 2006. RETAIL SALES GROWTH EASED FROM 7.9% IN THE PREVIOUS QUARTER TO 6.1% IN 1Q 2007, MAINLY DUE TO A DECELERATION IN MOTOR VEHICLES SALES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.9%, UP FROM 4.2% IN 4Q 2006. IN THE WHOLESALE SEGMENT, GROWTH OF NON-OIL RE-EXPORTS REMAINED FIRM AT 5.9%, SLOWER THAN 6.3% IN 4Q 2006.

OUTLOOK

THE ECONOMIC OUTLOOK IS GENERALLY POSITIVE BUT SOME DOWNSIDE RISKS REMAIN. THESE INCLUDE A SLOWDOWN IN THE US ECONOMY, VULNERABILITY OF OIL PRICES TO SUPPLY SHOCKS AND A DISORDERLY UNWINDING OF GLOBAL UNBALANCES. BARRING THESE UNCERTAINTIES, ECONOMIC GROWTH IS EXPECTED TO REMAIN HEALTHY IN 2007.

MANUFACTURING SECTORS ARE MORE OPTIMISTIC IN THE NEXT 6 MONTHS COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN 7% RECORDED A QUARTER AGO.

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

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

CHANNELNEWS ASIA

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