MIRA INFORM REPORT

Report Date :

05.09.2007

IDENTIFICATION DETAILS

Name :	AGRITRADE INTERNATIONAL (PTE) LTD
Registered Office :	^32^Hongkong Street, Singapore^– 059671
Country :	Singapore
Financials (as on) :	31.03.2005
Date of Incorporation :	^22/11/1979
Com. Reg. No.:	^197903533W
Legal Form :	^Exempt Pte Ltd
Line of Business :	Dealers in Agricultural Products and General Merchandise

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

AGRITRADE INTERNATIONAL (PTE) LTD

Line Of Business 

DEALERS IN AGRICULTURAL PRODUCTS AND GENERAL MERCHANDISE

Parent Company

--

Financial Elements

FY 2005

COMPANY

Sales : US$431,176,018

Networth : US$14,207,278

Paid-Up Capital : US$6,407,339

Net result : US$960,730

Net Margin(%) : 0.22

Return on Equity(%) : 6.76

Leverage Ratio : 3.07

COMPANY IDENTIFICATION

^{Subject Company: AGRITRADE INTERNATIONAL (PTE) LTD}

^{Former Name: -}

^{Business Address: 32 HONGKONG STREET}

^{Town: SINGAPORE}

^{Postcode: 059671}

^{County: -}

^{Country: Singapore}

^{Telephone: 6225 9618}

^{Fax: 6225 7916}

^{ROC Number: 197903533W}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Exempt Pte Ltd}

^{Date Inc.: 22/11/1979}

^{Previous Legal Form: -}

^{Summary year: 31/03/2005}

^{Sales: 431,176,018}

^{Net worth: 14,207,278}

^{Capital: 8,982,251}

^{Paid-Up Capital: 6,407,339}

^{Employees: 30}

^{Net result: 960,730}

^{Share value: 1}

^{Auditor: SHANGYEW PUBLIC ACCOUNTING CORPORATION}

REFERENCES

^{Litigation: Yes}

^{Company status: TRADING}

^{Started: 22/11/1979}

PRINCIPAL(S)

^{NG SAY PEK S0028042I Managing Director}

DIRECTOR(S)

^{NG SAY PEK S0028042I Managing Director}

^{Appointed on: 18/12/1979}

^{Street: 23 JALAN TANAH PUTEH}

^{Town: SINGAPORE}

^{Postcode: 457346}

^{Country: Singapore}

^{LIM CHEK HWEE S1237912I Director}

^{Appointed on: 22/11/1979}

^{Street: 23 JALAN TANAH PUTEH}

^{Town: SINGAPORE}

^{Postcode: 457346}

^{Country: Singapore}

^{LIM CHEK HWEE S1237912I Company Secretary}

^{Appointed on: 18/12/1979}

^{Street: 23 JALAN TANAH PUTEH}

^{Town: SINGAPORE}

^{Postcode: 457346}

^{Country: Singapore}

^{NG SAY PEK S0028042I Director}

^{Appointed on: 22/11/1979}

^{Street: 23 JALAN TANAH PUTEH}

^{Town: SINGAPORE}

^{Postcode: 457346}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{TAN HAN MOH S0097767E}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{COCOA - BUTTER And POWER Code:4737}

^{COMMISSION MERCHANTS Code:4990}

^{PALM OIL Code:15870}

^{FOOD PROCESSING And PACKAGING Code:9440}

^{BASED ON ACRA'S RECORD AS AT 03/09/2007}

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

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE HONGKONG & SHANGHAI BANKING COR}

^{ING BANK N V}

^{BANK OF CHINA LIMITED}

ASSOCIATED COMPANY(IES)

^{MUN LEE SENG TRADING SDN BHD}

^Malaysia

^{FUNG LEE SDN BHD}

^Malaysia

^{WUXI HUAXIN BRIGHT PEARL FOODSTUFFS}

^China

^{WUXI HUAXIN COCOA FOOD CO LTD}

^China

^{TAWAU WAREHOUSING SDN BHD}

^Malaysia

^{LONGI CORP (TIANJIN) INTERNATIONAL}

^China

^{AMBO AGRO PRODUCTS LTD}

^India

^{P.T. SENAMAS ENERINDO MULIA}

^Indonesia

SHAREHOLDERS(S)

^{NG SAY PEK 9,360,000 Private Person}

^{Street: 23 JALAN TANAH PUTEH}

^{Town: SINGAPORE}

^{Postcode: 457346}

^{Country: Singapore}

^{LIM CHEK HWEE 2,340,000 Private Person}

^{Street: 23 JALAN TANAH PUTEH}

^{Town: SINGAPORE}

^{Postcode: 457346}

^{Country: Singapore}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: DOWNWARD}

^{Financial Situation: AVERAGE}

LITIGATION(S)

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

^{Case Number: MCS02687/2003}

Defendant AGRITRADE INTERNATIONAL (PTE) LTD ROC #: 197903533W

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

^{Case Number: DCS00264/2002}

Defendant AGRITRADE INTERNATIONAL (PTE) LTD ROC #: 197903533W

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

^{Case Number: MCS19217/1997}

Defendant AGRITRADE INTERNATIONAL (PTE) LTD ROC #: 197903533W

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 26/08/2005}

^{Balance Sheet Date: 31/03/2005 31/03/2004 31/12/2002}

^{Number of weeks: 52 64 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 2,342,281 2,363,341 4,057,785}

^{Tangible Fixed Assets: 404,811 400,047 823,306}

^{Investments 7,275,635 2,247,287 3,752,880}

^{Total Fixed Assets: 10,022,727 5,010,675 8,633,971}

^{Inventories: - - 1,130,511}

^{Receivables: 37,541,689 34,605,814 62,574,303}

^{Cash,Banks,Securities: 6,881,855 4,206,434 3,775,266}

^{Other current assets: 3,421,584 423,376 10,719,962}

^{Total Current Assets: 47,845,128 39,235,624 78,200,042}

^{TOTAL ASSETS: 57,867,855 44,246,299 86,834,013}

^{--- LIABILITIES}

^{Equity capital: 6,407,339 5,269,587 6,800,000}

^{Profit & loss Account: 7,799,939 6,839,209 9,420,835}

^{Total Equity: 14,207,278 12,108,796 16,220,835}

^{L/T deferred taxes: 5,789 7,031 -}

^{Other long term Liab.: 992,805 196,432 614,505}

^{Total L/T Liabilities: 998,594 203,463 614,505}

^{Trade Creditors: 41,974,089 30,364,962 69,371,572}

^{Prepay. & Def. charges: 54,908 64,178 -}

^{Short term liabilities: 30,176 36,443 110,129}

^{Provisions: 202,044 132,937 200,290}

^{Other Short term Liab.: 400,766 1,335,520 316,682}

^{Total short term Liab.: 42,661,983 31,934,040 69,998,673}

^{TOTAL LIABILITIES: 43,660,577 32,137,503 70,613,178}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 431,176,018 457,227,711 463,493,159}

^{Purchases,Sces & Other Goods: - - 455,053,536}

^{Gross Profit: 6,601,727 7,312,349 8,439,623}

^{Result of ordinary operations 2,704,062 2,639,789 3,196,689}

^{NET RESULT BEFORE TAX: 1,082,539 1,348,537 1,523,946}

^{Tax: 121,809 150,547 222,170}

^{Net income/loss year: 960,730 1,197,990 1,301,776}

^{Interest Paid: 1,621,523 1,291,252 1,672,743}

^{Depreciation: 94,881 106,591 153,609}

^{Dividends: - - 187,200}

^{Directors Emoluments: 130,862 187,336 202,836}

^{Wages and Salaries: 906,650 1,143,127 1,378,296}

^{Financial Income: 59,235 15,613 21,901}

RATIOS

^{31/03/2005 31/03/2004 31/12/2002}

^{Turnover per employee: 14372533.93 15240923.70 15449771.97}

^{Net Margin(%): 0.22 0.26 0.28}

^{Return on Equity(%): 6.76 9.89 8.03}

^{Return on Assets(%): 1.66 2.71 1.50}

^{Dividends Coverage: - - 6.95}

^{Net Working capital: 5183145.00 7301584.00 8201369.00}

^{Cash Ratio: 0.16 0.13 0.05}

^{Quick Ratio: 1.04 1.22 0.95}

^{Current ratio: 1.12 1.23 1.12}

^{Receivables Turnover: 31.34 27.25 48.60}

^{Leverage Ratio: 3.07 2.65 4.35}

^{Net Margin: (100*Net income loss year)/Net sales}

^{Return on Equity: (100*Net income loss year)/Total equity}

^{Return on Assets: (100*Net income loss year)/Total fixed assets}

^{Dividends Coverage: Net income loss year/Dividends}

^{Net Working capital: (Total current assets/Total short term liabilities)}

^{Cash Ratio: Cash Bank securities/Total short term liabilities}

^{Quick Ratio: (Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio: Total current assets/Total short term liabilities}

^{Inventory Turnover: (360*Inventories)/Net sales}

^{Receivables Turnover: (Receivable*360)/Net sales}

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

FINANCIAL COMMENTS

^{THE INCOME STATEMENT FOR THE YEAR ENDED 2004 COVER THE PERIOD FROM 01/01/2003 TO 31/03/2004.}

^{THE INCOME STATEMENT FOR THE YEAR ENDED 2005 COVER THE PERIOD FROM 01/04/2004 TO 31/03/2005.}

^{AUDITORS' REPORT:}

^{THE INVESTMENT IN ASSOCIATED COMPANIES HAVE BEEN INCLUDED IN THE FINANCIAL STATEMENTS AT COST. THIS IS A DEPARTURE FROM THE SINGAPORE FINANCIAL REPORTING STANDARD NO 28 WHICH REQUIRES THAT INVESTMENTS IN ASSOCIATED COMPANIES TO BE INCLUDED IN THE FINANCIAL STATEMENTS UNDER THE EQUITY METHOD OF ACCOUNTING.}

^{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 17.33% FROM US$12,108,796 IN FY 2004 TO US$14,207,278. THIS WAS DUE TO ACCUMULATED PROFIT OF US$7,799,939 IN FY 2005 FROM US$6,839,209 IN FY 2004; A RISE OF 14.05% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 98.39% (2004: 95.09%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$41,974,089 IN FY 2005 (2004: US$30,364,962). TRADE CREDITORS COMPRISED THE FOLLOWING:}

^{-TRADE PAYABLES - 2005: US$319,595 (2004: US$2,163,702)}

^{-TRADE PAYABLES (ASSOCIATED COMPANIES) - 2005: US$NIL (2004: US$61,634)}

^{-BILLS PAYABLE - 2005: US$41,654,494 (2004: US$28,466,389)}

^{*THERE IS A DISCREPANCY IN THE TOTAL TRADE CREDITORS.}

^{OTHER LONG-TERM LIABILITIES OF US$992,805 IN FY 2005 (2004: US$196,432) COMPRISED:}

^{-HIRE PURCHASE LIABILITIES - 2005: US$97,071 (2004: US$56,242)}

^{-LOAN FROM A DIRECTOR - 2005: US$895,734 (2004: US$140,190)}

^{AS A RESULT OF A RISE IN TOTAL LIABILITIES, LEVERAGE RATIO ROSE TO 3.07 TIMES (2004: 2.65 TIMES).}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION HAD WEAKENED AS SEEN FROM THE FALL IN NET WORKING CAPITAL. NET WORKING CAPITAL DROPPED TO US$5,183,145 FROM US$7,301,584.}

^{LIQUIDITY RATIOS HAD WEAKENED. QUICK RATIO FELL TO 1.04 TIMES (2004: 1.22 TIMES) WHILE CURRENT RATIO DROPPED TO 1.12 TIMES (2004: 1.23 TIMES).}

^{HOWEVER, SUBJECT'S CASH AND CASH EQUIVALENT GREW MARKEDLY BY 63.60% TO US$6,881,855, UP FROM US$4,206,434.}

^{PROFITABILITY:}

^{REVENUE FELL BY 5.70% TO US$431,176,018 IN FY 2005 FROM US$457,227,711 AND HENCE A FALL IN NET PROFIT BY 19.80% TO US$960,730 FROM US$1,197,990 IN FY 2004. THIS WAS DUE TO A RISE IN FINANCE COSTS BY 25.58% TO US$1,621,523 (2004: US$1,291,252).}

^{HENCE, NET MARGIN WAS COMPUTED LOWER AT 0.22% (2004: 0.26%)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE IMPROVED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. ALSO, INTEREST COVERAGE WAS SUFFICIENT AT 1.67 TIMES IN FY 2005 (2004: 2.04 TIMES).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{SHARE CAPITAL:}

^AUTHORISED:

^{15,000,000 (2004: 10,000,000) SHARES OF S$1 EACH}

^{-2005: US$8,982,251 (2004: US$5,988,024)}

^{ISSUED AND FULLY PAID:}

^{10,700,000 (2004: 8,800,000) SHARES OF S$1 EACH}

^{-2005: US$6,407,339 (2004: US$5,269,587)}

^{DURING THE FINANCIAL YEAR, THE COMPANY INCREASED ITS AUTHORISED SHARE CAPITAL FROM S$10,000,000 TO S$15,000,000 BY THE CREATION OF AN ADDITIONAL 5,000,000 SHARES OF S$1 EACH. IN ADDITION, 1,900,000 SHARES OF S$1 EACH WERE ISSUED AT PAR FOR CASH TO PROVIDE FOR ADDITIONAL WORKING CAPITAL FOR THE COMPANY.}

^{LIMITED EXEMPT PRIVATE COMPANY:}

^{WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT OWNED BY ANY CORPORATE BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY IS KNOWN AS AN EXEMPT PRIVATE COMPANY.}

^{AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER AMOUNT OF PRIVACY THAN A PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS DIRECTORS, SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:}

^{1. THE COMPANY IS AN EXEMPT PRIVATE COMPANY.}

^{2. THE AUDITED ACCOUNTS HAVE BEEN TABLED BEFORE THE SHAREHOLDERS AT THE ANNUAL}

^{GENERAL MEETING.}

^{3. THE COMPANY IS ABLE TO MEET ITS LIABILITIES.}

^{THERE IS THEREFORE NO DISCLOSURE TO THE PUBLIC OF THE ACCOUNTS OF THE COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITED EVERY YEAR AND APPROVED AT AN ANNUAL GENERAL MEETING OF THE COMPANY.}

^{A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE GOVERNMENT MAY BECOME AN EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN THE NATIONAL INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION.}

^{EXEMPT FROM AUDIT}

^{AN EXEMPT PRIVATE COMPANY IS EXEMPT FROM AUDIT REQUIREMENTS IF THE STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31 MAY 2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED $2.5 MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT OF THE TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE STILL REQUIRED TO MAINTAIN PROPER ACCOUNTING.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 22/11/1979 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "AGRITRADE INTERNATIONAL (PTE) LTD".}

^{AS AT 03/09/2007, SUBJECT HAS A ISSUED AND PAID-UP CAPITAL OF 11,700,000 SHARES OF A VALUE S$11,700,000.}

^{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 AND EXPORTERS)}

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS (E.G. COMMISSION AGENCIES)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE THOSE OF DEALERS IN AGRICULTURAL PRODUCTS AND GENERAL MERCHANDISE.}

^{FROM THE RESEARCH DONE, SUBJECT IS IN THE TRADING OF AGRICULTURAL PRODUCE SUCH AS COCOA BEANS, COCOA PRODUCTS MAINLY COCOA BUTTER AND COCOA POWDER, PALM OIL, PALM OLEIN, STEARIN AND RELATED PALM PRODUCTS.}

^{SUBEJCT IS A MAJOR IMPORTER, EXPORTER AND MANUFACTURER OF COCOA BEANS, COCOA POWDER, COCOA BUTTER, PALM OIL, PALM OLEIN, PALM REFINED PRODUCTS AND OLEO-CHEMICALS. SUBJECT IS ALSO ACTIVE IN TRADING ENERGY OILS SUCH AS GAS OIL, DIESEL, SLOB OIL, PETROLEUM AND PETROCHEMICAL PRODUCT.}

^{SUBJECT HAS A JOINT VENTURE FACTORY IN WUXI, JIANGSU PROVINCE, CHINA PROCESSING COCOA BEANS INTO COCOA BUTTER FOR EXPORTS TO USA AND EUROPE. IT ALSO HAS A GENERAL TRADING DEPARTMENT EXPORTING FOODSTUFFS AND TEXTILE TO RUSSIA AND WORLDWIDE.}

^PURCHASES:

^{*IMPORTS (%): NOT PROVIDED}

^{*TERMS OF IMPORT: LETTERS OF CREDIT, 90 DAYS TERM, ETC}

^{*IMPORT COUNTRIES: WORLDWIDE, MALAYSIA, CHINA, ETC}

^MARKETS:

^{*LOCAL (%): NOT PROVIDED}

^{*TERMS SALES: LETTERS OF CREDIT, 90 DAYS TERM, ETC}

^{*EXPORT(%): NOT PROVIDED}

^{*TERMS OF EXPORT: LETTERS OF CREDIT, 90 DAYS TERM, ETC}

^{*EXPORT COUNTRIES: WORLDWIDE; USA, CHINA, EUROPE, PAKISTAN, BANGLADESH, INDIA, INDONESIA, MALAYSIA, RUSSIA, MONGOLIA , ETC}

^CLIENTS:

^{*MURIDKE REFINE OIL (PVT) LTD.}

^{*HAMEEDA INDUSTRIES (PVT) LTD.}

^{*UMER BILAL IND (PVT) LTD.}

^{*HAMZA VEGETABLE OIL REFINERY AND GHEE MILLS (PVT) LTD.}

^{*PAN ASIA FOOD PRODUCTS (PVT) LIMITED}

^{*ADEEL HAMZA OIL INDUSTRIES}

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

^{*SINGAPORE CHINESE CHAMBERS OF COMMERCE & INDUSTRY}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 05/09/2007.}

^{NUMBER OF EMPLOYEES (31 MARCH):}

^{*2005: 30 (2004: 28; 2002: 26; 2001: 25)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{32 HONG KONG STREET}

^{SINGAPORE 059671}

^{DATE OF CHANGE OF ADDRESS: 03/02/1997}

^{- RENTED PREMISE}

^{- OWNED BY: AGRITRADE INVESTMENTS PTE LTD}

^{--HEAD OFFICE}

^WEBSITE:

^{www.agritrade.com.sg}

^EMAIL:

^{agrit@pacific.net.sg}

^{enquiries@agritrade.com.sg}

MANAGEMENT

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

^{1) NG SAY PEK, A SINGAPOREAN}

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

^{AGRITRADE INVESTMENTS PTE LTD}

^{2) LIM CHEK HWEE, A SINGAPOREAN}

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

^{AGRITRADE INVESTMENTS PTE LTD}

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