MIRA INFORM REPORT

Report Date :

08.04.2008

IDENTIFICATION DETAILS

Name :	CATERPILLAR S.A.R.L. – SINGAPORE BRANCH

Registered Office :	^{7 Tractor Road Jurong Town}

Country :	Singapore

Financials (as on) :	30.11.2006

Date of Incorporation :	^27.08.1999

Com. Reg. No.:	^{F 05744W}

Legal Form :	^{Foreign Company}

Line of Business :	Sale of Earthmoving, Construction and Materials Handling Machineries, Engines and related Equipment and Spare Parts

RATING & COMMENTS

MIRA’s Rating :

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 :	Excellent

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

CATERPILLAR S.A.R.L. – SINGAPORE BRANCH

Line Of Business

SALE OF EARTHMOVING, CONSTRUCTION AND MATERIALS HANDLING MACHINERIES, ENGINES AND RELATED EQUIPMENT AND SPARE PARTS, ALL OF WHICH ARE PURCHASED FROM RELATED COMPANIES

Parent Company

Financial Elements

FY 2006

BRANCH

Sales : US$ 3,534,767,107

Networth : US$ 279,599,260

Paid-Up Capital : -

Net result : US$ 86,832,061

Net Margin(%) : 2.46

Return on Equity(%) : -

Leverage Ratio : -13.17

COMPANY IDENTIFICATION

^{Subject
Company :
CATERPILLAR S.A.R.L. – SINGAPORE} ^BRANCH

^{Former
Name :
-}

^{Business
Address :
7 TRACTOR ROAD}

^{JURONG TOWN}

^{Town :
SINGAPORE}

^{Postcode :
627968}

^{Country :
Singapore}

^{Telephone :
6828 7333}

^{Fax :
6828 7302}

^{ROC
Number :
F 05744W}

^{Reg.
Town : -}

SUMMARY

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

^{Legal
Form : Foreign
Company}

^{Date Inc. :
27/08/1999}

^{Previous
Legal Form : -}

^{Summary
year :
30/11/2006}

^{Sales :
3,534,767,107}

^{Networth
:
279,599,260}

^{Capital : -}

^{Paid-Up
Capital : -}

^{Employees : -}

^{Net
result : 86,832,061}

^{Share
value : -}

AUDITOR

^NIL

^{BASED
ON ACRA’S}

^{AUTHORISED
CAPITAL 240,000.00 V/SHARE
0.00 SWISS FRANC}

REFERENCES

^{Litigation : No}

^{Company
status : TRADING}

^{Started
:
27/08/1999}

PRINCIPAL(S)

No principals recorded in our Database

DIRECTOR(S)

^{STEVEN
H GRAHAM
157405923 Director}

^{Appointed
on : 20/12/2000}

^{Street
:
10 CHEMIN DES VARLIOUDES}

^{1252 MEINIER}

^{Town :
-}

^{Postcode : -}

^{Country :
Switzerland}

^{CHRISTIANO
V. SCHENA 303695T Director}

^{Appointed
on : 20/12/2000}

^{Street
:
LA LUCHE DUCROT,}

^{ROUTE DE MESSERY}

^{74140 NERNIER}

^{Town :
-}

^{Postcode : -}

^{Country :
France}

^{EDWARD
J. RAPP
701502426 Director}

^{Appointed
on : 20/12/2000}

^{Street
:
17 MARC DORET, 1224 CHENE-BOUGERIES}

^{Town :
-}

^{Postcode : -}

^{Country :
Switzerland}

^{PETER
BRUDERER
9464103 Director}

^{Appointed
on : 20/12/2000}

^{Street
:
62 ROUTE DE FLORISSANT}

^{1206 GENEVA}

^{Town :
-}

^{Postcode : -}

^{Country :
Switzerland}

^{VITO
H. BAUMGARTNER
9778982 Director}

^{Appointed
on : 06/07/1999}

^{Street
:
14 CHEMIN DE LA MOLLIETTE}

^LES
MEVAUX

^1254
JUSSY

^{Town :
-}

^{Postcode : -}

^{Country :
Switzerland}

^{GERARD
R. VITTECOQ
97HP29634 Director}

^{Appointed
on : 20/12/2000}

^{Street
:
248 ROUTE DE CORTENAZ}

^{74380 CRANVES-SALES}

^{Town :
-}

^{Postcode : -}

^{Country :
France}

^{CHARLES
B. GUSTAFSON Z7530546 Director}

^{Appointed
on : 06/07/1999}

^{Street
:
9A CH. DES HULINS, 1247 ANIERES}

^{Town :
-}

^{Postcode : -}

^{Country :
Switzerland}

^{CHRISTOPHER
CLARK SPEARS G5740140R Agent}

^{Appointed
on : 18/04/2005}

^{Street
:
25 CLAYMORE ROAD}

^#08-02

^{THE CLAYMORE}

^{Town :
SINGAPORE}

^{Postcode : 229543}

^{Country :
Singapore}

^{FOO
TOCK NGAN
S1368900H Agent}

^{Appointed
on : 18/04/2005}

^{Street
:
160 YUNG PING ROAD}

^#09-41

^{Town :
SINGAPORE}

^{Postcode : 610160}

^{Country :
Singapore}

FORMER DIRECTOR(S)

^{TAI
MUI LENG MONICA
S6844974Z}

^{LO
YIM WAH
S2637879F}

ACTIVITY(IES)

^{MACHINERY Code:
13260}

^{MATERIAL
HANDLING EQUIPMENT
Code: 13495}

^{BASED
ON ACRA'S RECORD}

^{1)
WHOLESALE OF INDUSTRIAL, AGRICULTURAL, CONSTRUCTION AND RELATED}

^{MACHINERY
AND EQUIPMENT}

PREMISES/PROPERTY INFORMATIONS

^{Date: 14/01/2008}

^{Tax
rate: 10}

^{Site
Address : 7
TRACTOR ROAD}

^{Town: -}

^{Postcode: 627968}

^{Country: Singapore}

^{Annual
Value: 2,450,000}

* 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).

* ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.

BANKERS

^{BANK
OF AMERICA}

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
:
LEVEL}

^{Financial
Situation : AVERAGE}

FINANCIAL ELEMENTS

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

^{Date
Account Lodged:
14/01/2008}

^{Balance
Sheet Date:
30/11/2006
30/11/2005}

^{Number
of weeks:
52 52}

^{Consolidation
Code: BRANCH BRANCH}

^---
ASSETS ^---

^{Intangible
Fixed Assets:
40,088,030
40,088,030}

^{Tangible
Fixed Assets: 37,012,857 35,015,407}

^{Total Fixed Assets: 77,100,887 75,103,437}

^{Inventories: 534,430,900 401,825,544}

^{Receivables: 191,298,564 157,417,274}

^{Cash,Banks,
Securitis: 4,221,887 3,105,523}

^{Other
current assets:
426,389
25,299,314}

^{Total Current Assets: 730,377,740 587,647,655}

^{TOTAL ASSETS: 807,478,627 662,751,092}

^{---
LIABILITIES} ^---

^{Total Equity: 279,599,260 267,448,276}

^{L/T
deffered taxes:
700,000 700,000}

^{Total L/T Liabilities: 700,000 700,000}

^{Trade
Creditors:
200,516,261
128,586,115}

^{Advanced
payments:
12,760,045
6,195,925}

^{Due
to Bank: 4,021,148 -}

^{Provisions: 7,649,795 17,418,027}

^{Other
Short term Liab.:
207,555,719
186,465,330}

^{Prepay.
& Def. charges:
94,676,399
55,937,419}

^{Total short term Liab.: 527,179,367 394,602,816}

^{TOTAL LIABILITIES: 527,879,367 395,302,816}

^{---
PROFIT & LOSS ACCOUNT} ^---

^{Net
Sales 3,534,767,107 3,257,245,162}

^{Purchases,Sces
& Other Goods
3,211,374,446
2,899,452,377}

^{Gross
Profit:
323,392,661
357,792,785}

^{Result
of ordinary operations
- -}

^{NET
RESULT BEFORE TAX:
92,103,035
158,489,912}

^{Tax
:
5,270,974
15,255,242}

^{Net
income/loss year:
86,832,061
143,234,670}

^{Interest
Paid: 4,525,402 4,207,886}

^{Depreciation: 2,685,599 2,500,365}

^{Financial
Income:
465,305
583,287}

RATIOS

^{30/11/2006 30/11/2005}

^{Net
result / Turnover(%): 0.02 0.04}

^{Stock
/ Turnover(%): 0.15 0.12}

^{Net
Margin(%): 2.46 4.40}

^{Return
on Equity(%): 31.06 53.56}

^{Return
on Assets(%): 10.75 21.61}

^{Net
Working capital: 203198373.00 193044839.00}

^{Cash
Ratio: 0.01 0.01}

^{Quick
Ratio: 0.37 0.41}

^{Current
ratio: 1.39 1.49}

^{Receivables
Turnover: 19.48 17.40}

^{Leverage
Ratio: 2.20}^1.74

^{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)/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 BRANCH IS A
SEGMENT OF CATERPILLAR S.A.R.L. INCORPORATED IN} ^{SWITZERLAND
AND IS NOT A SEPARATELY INCORPORATED LEGAL ENTITY. THE} ^{ACCOMPANYING
STATEMENTS HAVE BEEN PREPARED FROM THE RECORDS OF THE} ^{BRANCH AND
REFLECT ONLY TRANSACTIONS RECORDED LOCALLY.}

^{THE FINANCIAL
CONDITION OF THE BRANCH WAS SEEN TO BE FAIR IN VIEW OF}

^{THE FOLLOWING:}

^NET
WORTH:

^{THE BALANCE SHEET
WAS PASSABLE WITH HEAD OFFICE ACCOUNT IMPROVED BY}

^{4.54% FROM
US$267,448,276 IN FY 2005 TO US$279,599,260 IN FY 2006.}

^LEVERAGE:

^{IN THE SHORT-TERM,
SUBJECT WAS LARGELY FINANCED BY OTHER SHORT TERM} ^{LIABILITIES
WHICH MADE UP 39.37% (2005: 47.25%) OF THE TOTAL CURRENT} ^{LIABILITIES
AND AMOUNTED TO US$207,555,719 (2005: US$186,465,330).} ^{THE BREAKDOWN
WAS AS FOLLOWS:}

^{*AMOUNTS DUE TO
RELATED COMPANIES - 2006: US$31,924,012 (2005: NIL)}

^{*AMOUNTS DUE TO
ULTIMATE HOLDING CORPORATION - 2006: US$3,503,893}

^{(2005: NIL)}

^{*CORE
DEPOSITS LIABILITIES - 2006: US$78,617,725 (2005: US$65,755,969)}

^{*LOANS
FROM RELATED COMPANIES (NET) - 2006: US$93,510,089 (2005: US}

^{$120,709,361)}

^{LONG TERM
LIABILITIES, WHICH CONSIST OF DEFERRED INCOME TAX} ^{LIABILITIES,
REMAINED AT US$700,000 DURING THE FINANCIAL YEAR.}

^{IN ALL, LEVERAGE
RATIO FELL FROM -9.86 TIMES TO -13.17 TIMES AS A} ^RESULT ^{OF A MORE THAN PROPORTIONATE RISE IN SUBJECT'S HEAD OFFICE ACCOUNT AS} ^{COMPARED TO THE RISE IN ITS TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL,
SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM} ^{THE RISE IN
NET WORKING CAPITAL BY 5.26% TO US$203,198,373} ^{(2005:
US$193,044,839).}

^{BOTH CURRENT AND
QUICK RATIO DROPPED TO 1.39 TIMES (2005: 1.49 TIMES)} ^{AND 0.37
TIMES (2005: 0.41 TIMES) RESPECTIVELY.}

^{PROFITABILITY:}

^{SUBJECT POSTED AN
INCREASE IN REVENUE OF 8.52% TO US$3,534,767,107} ^{(2005:
US$3,257,245,162). HOWEVER, NET PROFIT DROPPED BY 39.38% TO US} ^$86,832,061 ^{(2005: US$143,234,670). NET MARGIN DROPPED TO 2.46% (2005: 4.40%).}

^{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.

^{THE
AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 19 DAYS (2005: 17} ^DAYS).

^{NOTES TO FINANCIAL STATEMENTS:}

^{FINANCE EXPENSES}

^{INTEREST
EXPENSE:}

^{*BANK
OVERDRAFTS - US$3,398 (2005: US$183)}

^{*LOANS
FROM RELATED COMPANIES - US$4,522,004 (2005: US$4,207,703)}

^{BANK BALANCES}

^{*DEPOSITS
AT CALL - 2006: US$2,978,592 (2005: US$1,536,835).} ^{THE DEPOSITS
AT CALL AT THE BALANCE SHEET DATE HAVE AN AVERAGE} ^{MATURITY OF 2 DAYS
(2005: 2 DAYS) FROM THE END OF THE FINANCIAL YEAR} ^{WITH A WEIGHTED
AVERAGE EFFECTIVE INTEREST RATE OF 5% (2005: 5%).}

^BORROWINGS

^{*BANK
OVERDRAFT - 2006: US$4,021,148 (2005: NIL)}

^{*LOANS
FROM RELATED COMPANIES (NET) - 2006: US$93,510,089 (2005: US}

^{$120,709,361)}

^{THE
LOAN FROM A RELATED CORPORATION (NET) AMOUNTING TO US$93,510,089} ^{(2005:
US$120,709,361), IS SECURED, BEARS INTEREST AT ONE-MONTH US$} ^{LIBOR
RATE PLUS 50 BASIS POINTS AND HAS NO SPECIFIC REPAYMENT DATE.}

^{THE
CARRYING AMOUNTS OF BORROWINGS APPROXIMATE THEIR FAIR VALUES.}

BACKGROUND/OPERATION

^{SUBJECT
WAS INCORPORATED IN SWITZERLAND, AND REGISTERED AS A} ^{FOREIGN
BRANCH IN SINGAPORE, ON 27/08/1999, TRADING UNDER THE} ^{NAMESTYLE
"CATERPILLAR S.A.R.L. - SINGAPORE BRANCH".}

^{THE
COMPANY HAS AN AUTHORISED CAPITAL OF 240,000} ^{SWISS FRANC.}

^{PRINCIPAL
ACTIVITIES:}

^{SUBJECT
IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY}

^{AUTHORITY
(ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1)
WHOLESALE OF INDUSTRIAL, AGRICULTURAL, CONSTRUCTION AND RELATED}

^{MACHINERY
AND EQUIPMENT}

^{2)
MANUFACTURE & REPAIR OF ENGINES & TURBINES EXCEPT AIRCRAFT,}

^{VEHICLE
& CYCLE ENGINES}

^{DURING THE
FINANCIAL YEAR(S) UNDER REVIEW, THE PRINCIPAL ACTIVITY OF} ^{THE BRANCH
CONSISTS OF THE SALE OF EARTHMOVING, CONSTRUCTION AND} ^{MATERIALS
HANDLING MACHINERIES, ENGINES AND RELATED EQUIPMENT AND} ^{SPARE PARTS,
ALL OF WHICH ARE PURCHASED FROM RELATED COMPANIES.}

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

^ACTIVITIES:

^{*
EARTHMOVING, CONSTRUCTION AND MATERIAL HANDLING EQUIPMENT, AND}

^{DIESEL,
GAS AND TURBINE ENGINES MANUFACTURE}

^{PRODUCTS
AND SERVICES:}

^{*
MOTOR GRADERS}

^{*
WHEEL TRACTORS}

^{*
CYLINDER BLOCK CASTING, CRANKSHAFT, CONNECTING ROD ASSEMBLIES,}

^{CYLINDER
HEAD CASTING, CAMSHAFT, MAIN BEARING BOLTS, ETC}

^{IMPORT
COUNTRIES:}

^{*
UNITED STATES}

^{EXPORT
COUNTRIES:}

^{*
MIDDLE EAST}

^*
AFRICA

^*
AUSTRALIA

^{TERMS
OF PAYMENT:}

^{*
TERMS SALES : 30, 45 DAYS TERMS}

^{*
TERMS OF EXPORT: 30, 45 DAYS TERMS}

^{*
TERMS OF IMPORT: 30, 45 DAYS TERMS}

^{NO
OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS} ^{NOT GRANTED}

^{THE
BRANCH'S IMMEDIATE AND ULTIMATE HOLDING COMPANY IS CATERPILLAR} ^{INCORPORATED,
A COMPANY INCORPORATED IN UNITED STATES OF AMERICA.}

^{THE
BRANCH DOES NOT HAVE ANY EMPLOYEES ON ITS PAYROLL AS OPERATIONS} ^{HAVE BEEN
OUTSOURCED TO A RELATED COMPANY. THE RELATED COMPANY} ^{INVOICES THE
BRANCH FOR THE REIMBURSEMENT OF EXPENSES AND A}

^{MANAGEMENT
FEE.}

^{REGISTERED
AND BUSINESS ADDRESS:}

^{7
TRACTOR ROAD}

^JURONG
TOWN

^{SINGAPORE
627968}

^{DATE
OF CHANGE OF ADDRESS: -}

^{-
OWNED PREMISE}

^{OTHER
BUSINESS ADDRESS:}

^{14
TRACTOR ROAD}

^JURONG
TOWN

^{SINGAPORE
627973}

^WEBSITE:

^{http://www.caterpillar.com}

^{http://www.cat.com}

^E-MAIL:

^{yeong_kristie@cat.com}

MANAGEMENT

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

^{(1)
STEVEN H. GRAHAM, AN AMERICAN}

^{-
BASED IN SWITZERLAND}

^{(2)
CHRISTIANO V. SCHENA, AN ITALIAN}

^{-
BASED IN FRANCE}

^{(3)
EDWARD J. RAPP, AN AMERICAN}

^{-
BASED IN SWITZERLAND}

^{(4)
PETER BRUDERER, A SWISS}

^{-
BASED IN SWITZERLAND}

^{(5)
VITO H. BAUGARTNER, A SWISS}

^{-
BASED IN SWITZERLAND}

^{(6)
GERARD R. VITTECOQ, A FRENCH}

^{-
BASED IN FRANCE}

^{(7)
CHARLES B. GUSTAFSON, AN AMERICAN}

^{-
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

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.6% IN 3Q 2007, WEAKER THAN THE 8.4% GROWTH IN 2Q 2007. ALTHOUGH NON-OIL RE-EXPORTS STRENGTHENED IN THE QUARTER, RETAIL SALES RECORDED SLOWER GROWTH.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.6% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 7.5%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF FOOD, BEVERAGES AND TOBACCO (45.7%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (23.3%). OTHER WHOLESALE SEGMENTS THAT REPORTED BETTER BUSINESS WERE WHOLESALING OF INDUSTRIAL AND CONSTRUCTION MACHINERY (9.7%) TELECOMMUNICATIONS AND COMPUTERS (8.3%) AND CHEMICALS AND CHEMICAL PRODUCTS (6.8%).

ON THE OTHER HAND, WHOLESALE SEGMENTS THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-19.4%), HOUSEHOLD EQUIPMENT AND FURNITURE (-4.4%), SHIP CHANDLERS AND BUNKERING (-3.1%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.9% IN 3Q 2007 OVER 3Q 2006. DOMESTIC SALES EXCLUDING PETROLEUM ROSE BY 9.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 3Q 2007 ROSE BY 12.2% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 3Q 2007 OVER PREVIOUS QUARTER. SHIP CHANDLERS AND BUNKERING EXPANDED BY 27.9%, MAINLY DUE TO HIGHER BUNKER SALES.

THE GENERAL WHOLESALE TRADE SECTOR FELL IN 3Q 2007 AFTER RECORDING STRONG GROWTH IN 2Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 3Q 2007 ROSE BY 4.3%, IN COMPARISON TO 3Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 9.0%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (51.2%) AND TIMBER, PAINT AND CONSTRUCTION MATERIALS (15.5%). OTHER WHOLESALE SECTORS THAT REGISTERED BETTER BUSINESS IN 3Q 2007 WERE CHEMICALS AND CHEMICAL PRODUCTS (7.6%) AND TELECOMMUNICATIONS AND COMPUTERS (5.0%)

FOREIGN SALES OF SHIP CHANDLERS AND BUNKERING, GENERAL WHOLESALE TRADE, INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS REGISTERED INCREASES OF 2.6% TO 6.1 %IN 3Q 2007, IN CONTRAST TO THE LOWER SALES IN THE PREVIOUS QUARTER.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 8.0% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 12.0%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 3Q 2007 ROSE BY 4.9% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 3Q 2007 WITH THE EXCEPTION OF CHEMICALS AND CHEMICAL PRODUCTS. WHOLESALE TRADE OF FOOD, BEVERAGES AND TOBACCO, AND SHIP CHANDLERS AND BUNKERING BOTH GREW BY 17.1%. WHOLESALE OF ELECTRONIC COMPONENTS ROSE BY 12.5%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE BY 1.3%, WEAKER THAN THE 7.9% IN 2Q 2007. MOTOR VEHICLES FELL BY 6.8% COMPARED TO THE 2.4% GROWTH IN 2Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.7%, A DECLINE FROM THE 11.O% IN 2Q 2007.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THIS APPLIES PARTICULARLY TO FIRMS IN THE WHOLESALING OF FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, COSMETICS AND TOILETRIES, AND HOUSEHOLD AND ELECTRICAL APPLIANCES.

AS A RESULT OF YEAR-END FESTIVE SHOPPING, A NET WEIGHTED BALANCE OF 31% OF RETAILERS EXPECTS BUSINESS TO IMPROVE IN THE COMING MONTHS. THE RETAIL SECTORS THAT ARE FORECASTING BETTER BUSINESS INCLUDING DEPARTMENT STORE AND SUPERMARKET OWNERS, WEARING APPAREL AND FOOTWEAR, FURNITURE AND FURNISHINGS, AND JEWELLERY AND WATCHES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY

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%)

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