MIRA INFORM REPORT

Report Date :

26.09.2007

IDENTIFICATION DETAILS

Name :	BHP BILLITON MARKETING AG (SINGAPORE BRANCH)
Registered Office :	168 Robinson Road, #10-01, Capital Tower, Singapore - 068912
Country :	Singapore
Financials (as on) :	30.06.2006
Date of Incorporation :	28.04.2005
Legal Form :	Foreign Company
Line of Business :	Marketing and trading of products and derivatives of all kinds, including raw materials, metals, energy and other commodities or related products, and the provision of services.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Company Name

BHP BILLITON MARKETING AG (SINGAPORE BRANCH)

Line Of Business 

MARKETING AND TRADING OF PRODUCTS AND DERIVATIVES OF ALL KINDS, INCLUDING RAW MATERIALS, METALS, ENERGY AND OTHER COMMODITIES OR RELATED PRODUCTS, AND THE PROVISION OF SERVICES.

Parent Company

-

Financial Elements

FY2006

BRANCH

Sales : US$11,421,886,000

Networth : US$ 9,976,000

Paid-Up Capital : -

Net result : US$ 392,191,000

Net Margin(%) : 3.43

Return on Equity(%) : 3,931.35

Leverage Ratio : 221.20 TIMES

Rating

Credit Rating : Sing $ 10 000 00 1 to Sing $ 50 000 000

COMPANY IDENTIFICATION

Subject Company : BHP BILLITON MARKETING AG (SINGAPORE BRANCH)

Former Name : -

Business Address : 168 ROBINSON ROAD, #10-01, CAPITAL TOWER

Town : SINGAPORE

Postcode : 068912

County : -

Country : Singapore

Telephone : 6349 3333

Fax : 6349 4000

ROC Number : F 06681W

Reg. Town : -

SUMMARY

All amounts in this report are in : USD

Legal Form : Foreign Company

Date Inc. : 28/04/2005

Previous Legal Form : -

Summary year : 30/06/2006

Sales : 11,421,886,000

Net Worth : 9,976,000

Paid-Up Capital : 11,421,886,000

Employees : -

Net Result : 392,191,000

Share value : -

Auditor : NIL

^{BASED ON ACRA'S RECORD AS AT 01/03/2007}

^{AUTHORISED CAPITAL SWISS FRANC 142,000,000.00 V/SHARE 1.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 28/04/2005}

PRINCIPAL(S)

No principals recorded in our Database

DIRECTOR(S)

THOMAS H. SCHUTTE 428931704 Director

Appointed on : 01/12/2003

Street : JAN WAGTENDONKSTRAAT 29, NL 2251 RM VOORSCHOTEN

Town : -

Postcode : -

Country : Netherlands

TERENCE G.M. BRIANT 761019753 Director

Appointed on : 15/12/2000

Street : GRABENACKERSTRASSE 48

Town : STEINHAUSEN

Postcode : CH 6312

Country : Switzerland

JULIUS L. MATTHYS E7076010 Director

Appointed on : 20/07/2005

Street : ATJEHSTRAAT 124, NL 2585 VN

Town : THE HAGUE

Postcode : -

Country : Netherlands

MICHAEL M. MCMULLEN E7079140 Director

Appointed on : 20/07/2005

Street : 32 NASSIM HILL, #02-38, NASSIM MANSION

Town : SINGAPORE

Postcode : 258472

Country : Singapore

HANS WILLE F0453971 Director

Appointed on : 15/12/2000

Street : ALFRED-ULRICH-STRASSE 8

Town : ZOLLIKON

Postcode : CH 8702

Country : Switzerland

ROLF MUELLER F1296856 Director

Appointed on : 15/04/2002

Street : REBENWEG 24A, CH 6331

Town : HUNENBERG

Postcode : -

Country : Switzerland

MARTIN A. SCHERER F1592421 Director

Appointed on : 21/02/2005

Street : ALTE LANDSTRASSE 99, CH 8800

Town : THALWIL

Postcode : -

Country : Switzerland

URSULA KILLER F1671794 Director

Appointed on : 23/03/2000

Street : FROHBURGWEG 15, CH 6340

Town : BAAR

Postcode : -

Country : Switzerland

ALEXANDER JACOBUS BOONZAAIER VAN G5632254Q Agent

Appointed on : 28/04/2005

Street : 25 ANDERSON ROAD, #05-03, AVALON

Town : SINGAPORE

Postcode : 259986

Country : Singapore

MICHAEL M. MCMULLEN G5753684K Agent

Appointed on : 19/01/2006

Street : 168 ROBINSON ROAD, #10-01, CAPITAL TOWER

Town : SINGAPORE

Postcode : 068912

Country : Singapore

PUAL A. KOPPELMAN L3111478 Director

Appointed on : 14/02/2006

Street : GROOT HOEFIJZERLAAN 22, NL 2244 GJ

Town : WASSENAAR

Postcode : -

Country : Netherlands

ACTIVITY (IES)

^{COMMODITY TRADERS Code: 5010}

^{TRADING COMPANIES Code: 22190}

^{BASED ON ACRA'S RECORD AS AT 01/03/2007}

^{1) OTHER SUPPORT ACTIVITIES; MARKETING & TRADING OF PRODUCTS, COMMODITIES AND DERIVATES OF ALL KINDS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{BANK OF AMERICA NATIONAL ASSOCIATION}

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED}

SHAREHOLDERS(S)

No Shareholders In Our Database

SUBSIDIARY (IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality : AVERAGE

Liquidity : SUFFICIENT

Payments : REGULAR

Trend : UNKNOWN

Financial Situation : AVERAGE

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Audit Qualification: UNQUALIFIED (CLEAN)}

^{Balance Sheet Date: 30/06/2006}

^{Number of weeks: 52}

^{Consolidation Code: BRANCH}

ASSETS

^{Preliminary Exp 27,961,000}

^{Total Fixed Assets: 27,961,000}

^{Inventories: 243,180,000}

^{Receivables: 1,283,526,000}

^{Cash, Banks, Securities: 45,608,000}

^{Other current assets: 616,431,000}

^{Total Current Assets: 2,188,745,000}

^{TOTAL ASSETS: 2,216,706,000}

LIABILITIES

^{Total Equity: 9,976,000}

^{Other long term Liab.: 25,055,000}

^{Total L/T Liabilities: 25,055,000}

^{Trade Creditors: 1,192,275,000}

^{Due to Bank: 122,615,000}

^{Provisions: 23,466,000}

^{Other Short term Liab.: 843,319,000}

^{Total short term Liab.: 2,181,675,000}

^{TOTAL LIABILITIES: 2,206,730,000}

PROFIT & LOSS ACCOUNT

^{Net Sales 11,421,886,000}

^{Purchases,Sces & Other Goods: 11,005,226,000}

^{Gross Profit: 461,660,000}

^{NET RESULT BEFORE TAX: 393,215,000}

^{Tax : 1,024,000}

^{Net income/loss year: 392,191,000}

^{Interest Paid: 8,395,000}

^{Wages and Salaries: 1,469,000}

^{Financial Income: 6,708,000}

RATIOS

^30/06/2006

^{Net result / Turnover(%): 0.03}

^{Stock / Turnover(%): 0.02}

^{Net Margin(%): 3.43}

^{Return on Equity(%): 3931.35}

^{Return on Assets(%): 17.69}

^{Net Working capital: 7070000.00}

^{Cash Ratio: 0.02}

^{Quick Ratio: 0.61}

^{Current ratio: 1.00}

^{Receivables Turnover: 40.45}

^{Leverage Ratio: 221.20}

^{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

^{AUDITORS' REPORT:}

^{THE SINGAPORE BRANCH IS A SEGMENT OF BHP BILLITON MARKETING AG, INCORPORATED IN BAAR, SWITZERLAND AND IS NOT A SEPARATELY INCORPORATED LEGAL ENTITY. THE ATTACHED FINANCIAL STATEMENTS HAVE BEEN PREPARED FROM THE OF THE BRANCH AND REFLECT ONLY TRANSACTIONS RECORDED LOCALLY.}

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH AMOUNT DUE TO HEAD OFFICE ACCOUNT TOTALLING USD9,976,000. THIS COMPRISED OF THE FOLLOWING:}

²⁰⁰⁶

^US$'000

^{AT 1 JULY 2005 -}

^{TRANSFER FROM HEAD OFFICE 69,942}

^{NET PROFIT FOR THE PERIOD, REPRESENTING TOTAL}

^{RECOGNISED INCOME & EXPENSE FOR THE PERIOD 392,191}

^{REPATRIATION OF PROFITS TO HEAD OFFICE (452,157)}

^{AS AT 30 JUNE 2006 9,976}

^LEVERAGE:

^{THE LEVERAGE RATIO WAS EXCESSIVE AT 221.20 TIMES, INDICATING THAT THE BRANCH'S TOTAL LIABILITIES WERE HIGHLY SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{TRADE CREDITORS REGISTERED AT USD1,192,275,000, ACCOUNTING FOR 54.65% OF THE TOTAL CURRENT LIABILITIES. OTHER SHORT TERM LIABILITIES OF USD843,319,000 REPRESENTED:}

^{* OTHER PAYABLES OF USD43,172,000}

^{* FAIR VALUE DERIVATIVES OF USD352,872,000}

^{* AMOUNTS DUE TO HEAD OFFICE (NON-TRADE) OF USD447,275,000}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE BRANCH WAS FAIRLY HEALTHY. NET WORKING CAPITAL REGISTERED AT USD7,070,000.}

^{ON THE OTHER HAND, BOTH THE QUICK AND CURRENT RATIOS WERE LACKING AT 0.61 TIMES AND 1.00 TIMES RESPECTIVELY.}

^{PROFITABILITY:}

^{REVENUE FOR FY2005 TOTALLED USD11,421,886,000 WHILE THE NET INCOME POSTED AT USD392,191,000. AS A RESULT, NET MARGIN WAS COMPUTED AT 3.43%.}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE SUFFICIENT NET WORKING CAPITAL, AND IF REVENUES AND NET INCOMES CONTINUE TO BE GENERATED.}

^{IN ADDITION, AVERAGE COLLECTION PERIOD WAS COMPUTED AT 40 DAYS.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITIES}

^{THE HEAD OFFICE AND THE BRANCH SHARE AN UNSECURED TRADE FINANCE FACILITY, AMOUNTING TO USD315.0 MILLION AS AT 30 JUNE 2006, OF WHICH A TOTAL OF USD88.8 MILLION WAS UTILISED AT THAT DATE. THE BRANCH'S UTILISATION AS AT 30 JUNE 2006 AMOUNTED TO USD3.5 MILLION.}

^{COMPARATIVE INFORMATION}

^{NO COMPARATIVE FIGURES ARE AVAILABLE AS THIS IS THE FIRST SET OF FINANCIAL STATEMENTS PREPARED BY THE BRANCH SINCE INCORPORATION.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN SWITZERLAND AND REGISTERED AS A FOREIGN BRANCH IN SINGAPORE ON 28/04/2005 UNDER THE PRESENT NAMESTYLE OF "BHP BILLITON MARKETING AG (SINGAPORE BRANCH)".}

^{AS AT 01/03/2007, SUBJECT HAS AN AUTHORISED CAPITAL OF 142,000,000 SWISS FRANC.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) OTHER SUPPORT ACTIVITIES; MARKETING & TRADING OF PRODUCTS, COMMODITIES AND DERIVATES OF ALL KINDS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE RELATING TO THE MARKETING AND TRADING OF PRODUCTS AND DERIVATIVES OF ALL KINDS, INCLUDING RAW MATERIALS, METALS, ENERGY AND OTHER COMMODITIES OR RELATED PRODUCTS, AND THE PROVISION OF SERVICES.}

^{THE BRANCH IS A SEGMENT OF BHP BILLITON MARKETING AG (THE "HEAD OFFICE"), INCORPORATED IN BAAR, SWITZERLAND. AND IS NOT A SEPARATELY INCORPORATED LEGAL ENTITY.}

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

^{SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: MARKETING CONSULTANTS.}

^NEWS:

^{QASCO, BHP BILLITON SIGN MARKETING DEAL – QATAR MIST NEWS, 09:48, 27 NOVEMBER 2006}

^{QATAR STEEL COMPANY (QASCO), A QATARI JOINT STOCK COMPANY AND AN AFFILIATE OF INDUSTRIES QATAR (IQ), RECENTLY SIGNED IN SINGAPORE A MARKETING AGREEMENT WITH BHP BILLITON MARKETING AG (SINGAPORE BRANCH) TO MARKET MORE THAN 350,000 TONNES PER YEAR OF HOT BRIQUETTED IRON (HBI). THE MARKETING AGENCY AGREEMENT EFFECTIVE IN 2007 WILL PROVIDE BHP BILLITON WITH THE EXCLUSIVE RIGHTS TO MARKET QATAR STEEL HBI IN CERTAIN ASIAN MARKETS. THE HIGH-QUALITY HBI IS TO BE PRODUCED FROM THE NEWLY-BUILT 1.5 MILLION TONNE DIRECT REDUCTION PLANT STARTING IN THE FIRST QUARTER OF 2007. THE SIGNING CEREMONY WAS ATTENDED FROM THE QASCO SIDE, BY SHEIKH NASSER BIN HAMAD AL THANI, DIRECTOR AND GENERAL MANAGER, SAAD AL MOHANNADI, DIVISION MANAGER, ALI HASAN MURAIKHI DIVISION MANAGER, COMMERCIAL AND DR IDRIS GAMIL SENIOR LEGAL ADVISER.}

^{INFORMATION ON HEAD OFFICE:}

^{SUBJECT HAS SOME 38,000 EMPLOYEES WORKING IN MORE THAN 100 OPERATIONS IN APPROXIMATELY 25 COUNTRIES.}

^{THE CENTRAL TENET OF THE BHP BILLITON BUSINESS MODEL IS THAT ITS DIVERSIFIED PORTFOLIO OF HIGH QUALITY ASSETS PROVIDES MORE STABLE CASH FLOWS AND GREATER CAPACITY TO DRIVE GROWTH THAN THE TRADITIONAL RESOURCE CYCLICALS. IN 2006, WE GENERATED TURNOVER OF US$39.1 BILLION, UNDERLYING EARNINGS BEFORE INTEREST AND TAX (UNDERLYING EBIT) OF US $15.3 BILLION, ATTRIBUTABLE PROFIT (EXCLUDING EXCEPTIONAL ITEMS) OF US$10.2 BILLION AND NET OPERATING CASH FLOW OF US$10.5 BILLION. AS AT 31 JANUARY 2007 OUR MARKET CAPITALISATION WAS US$118 BILLION.}

^{BUSINESS SECTORS:}

^{* ALUMINIUM}

^{* BASE METALS}

^{* DIAMONDS & SPECIALTY PRODUCTS}

^{* ENERGY COAL}

^{* IRON ORE}

^{* MANGANESE}

^{* METALLURGICAL COAL}

^{* PETROLEUM}

^{* STAINLESS STEEL MATERIALS}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE ON 06/03/2007.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{168 ROBINSON ROAD}

^#10-01

^{CAPITAL TOWER}

^{SINGAPORE 068912}

^{DATE OF CHANGE OF ADDRESS: 28/04/2005}

^WEBSITE:

^{* http://www.bhpbilliton.com/bb/home.jsp}

^EMAIL:

^{* NA}

MANAGEMENT

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

^{1) THOMAS H. SCHUTTE, A SOUTH AFRICAN}

^{- BASED IN THE NETHERLANDS}

^{2) TERENCE G.M. BRIANT, A BRITISH}

^{- BASED IN SWITZERLAND}

^{3) JULIUS L. MATTHYS, AN AUSTRALIAN}

^{- BASED IN THE NETHERLANDS}

^{4) MICHAEL M. MCMULLEN, AN AUSTRALIAN}

^{- BASED IN SINGAPORE}

^{5) HANS WILLE, A SWISS}

^{- BASED IN SWITZERLAND}

^{6) ROLF MUELLER, A SWISS}

^{- BASED IN SWITZERLAND}

^{7) MARTIN A. SCHERER, A SWISS}

^{- BASED IN SWITZERLAND}

^{8) URSULA KILLER, A SWISS}

^{- BASED IN SWITZERLAND}

^{9) PUAL A. KOPPELMAN, AN AUSTRALIAN}

^{- BASED IN THE NETHERLANDS}

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