MIRA INFORM REPORT

Report Date :

09.04.2008

IDENTIFICATION DETAILS

Name :	CARGILL INTERNATIONAL TRADING PTE LTD
Formerly Known As :	^CARGILL COMMODITY TRADING PTE. LTD.
Registered Office :	^300 Beach Road #23-01 ^The Concourse
Country :	Singapore
Financials (as on) :	31.05.2007
Date of Incorporation :	^05.12.1967
Com. Reg. No.:	^196700442D
Legal Form :	^Pte Ltd
Line of Business :	Commodities Trading

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 :	Very Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

CARGILL INTERNATIONAL TRADING PTE LTD

Line Of Business 

COMMODITIES TRADING

Parent Company

CARGILL ASIA PACIFIC HOLDINGS PTE. LTD.

(PERCENTAGE OF SHAREHOLDINGS: 100.00%)

Financial Elements

FY 2007

CONSOLIDATED

Sales : US$5,951,294,697

Networth : US$ 204,066,319

Paid-Up Capital : US$ 7,676,243

Net result : US$ 70,806,811

Net Margin(%) : 1.19

Return on Equity(%) : 34.70

Leverage Ratio : 5.19

COMPANY IDENTIFICATION

^{Subject Company : CARGILL INTERNATIONAL TRADING PTE LTD}

^{Former Name : CARGILL COMMODITY TRADING PTE. LTD.}

^{Business Address : 300 BEACH ROAD}

^#23-01

^{THE CONCOURSE}

^{Town : SINGAPORE}

^{Postcode : 199555}

^{County : -}

^{Country : Singapore}

^{Telephone : 6295 1112}

^{Fax : 6393 8898}

^{ROC Number : 196700442D}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{CARGILL COMMODITY TRADING PTE. LTD. DATE OF CHANGE : 29/07/1993}

SUMMARY

^{Legal Form : Pte Ltd}

^{Date Inc. : 05/12/1967}

^{Previous Legal Form : -}

^{Summary year : 31/05/2007}

^{Sales : 5,951,294,697}

^{Networth : 204,066,319}

^{Capital : -}

^{Paid-Up Capital : 7,676,243}

^{Employees : 400}

^{Net result : 70,806,811}

^{Share value : -}

^{Auditor : KPMG}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 05/12/1967}

PRINCIPAL(S)

^{SYED MUNIRUL HASAN 003270 Director}

DIRECTOR(S)

^{SYED MUNIRUL HASAN 003270 Director}

^{Appointed on : 21/04/1994}

^{Street : 99 MEYER ROAD}

^#27-02

^{THE SOVEREIGN}

^{Town : SINGAPORE}

^{Postcode : 437920}

^{Country : Singapore}

^{MARIAN VERONICA PESTANA S1419613G Company Secretary}

^{Appointed on : 24/06/1985}

^{Street : 149 TAMPINES STREET 12}

^#09-104

^{Town : SINGAPORE}

^{Postcode : 521149}

^{Country : Singapore}

^{JERAL SYLVESTER D'SOUZA 500024487 Director}

^{Appointed on : 06/08/1997}

^{Street : 19 BINJAI WALK}

^{BINJAI PARK}

^{Town : SINGAPORE}

^{Postcode : 589748}

^{Country : Singapore}

^{LYE PENG YEE S2501597E Director}

^{Appointed on : 02/06/2003}

^{Street : 18A JALAN TUA KONG}

^{Town : SINGAPORE}

^{Postcode : 457211}

^{Country : Singapore}

^{PAUL JOHN HICKMAN 761033346 Director}

^{Appointed on : 23/01/2006}

^{Street : 23 GREENWOOD CRESCENT}

^{Town : SINGAPORE}

^{Postcode : 286986}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{AAMIR ZAHEER FAROOQI 029638}

^{MICHAEL JOSEPH COLEMAN B372949}

^{DANIEL R HUBER 022948116}

^{ROBERT EDWARD MCRAE 026089418}

^{DARRELL GENE GILMORE 152661542}

^{JITESH S/O KANTILAL AVLANI S2531131J}

ACTIVITY(IES)

^{COMMODITY BROKERS Code: 5000}

^{BASED ON ACRA'S RECORD}

^{1) COMMODITY BROKERS & DEALERS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{JPMORGAN CHASE BANK}

ASSOCIATED COMPANY(IES)

^{CARGILL PRESIDENT HOLDINGS PTE LTD}

^Singapore

SHAREHOLDERS(S)

^{CARGILL ASIA PACIFIC HOLDINGS PTE. 1,795,565 Company}

^{Street : 300 BEACH ROAD}

^#23-01

^{THE CONCOURSE}

^{Town : SINGAPORE}

^{Postcode : 199555}

^{Country : Singapore}

FORMER SHAREHOLDER(S)

^{CARGILL INTERNATIONAL S A 25,372,300}

^{CARGILL INCORPORATED 16,206,500}

HOLDING COMPANY

^{CARGILL ASIA PACIFIC HOLDINGS PTE. LTD. 200401312G %: 100}

SUBSIDIARY(IES)

^{CARGILL GLOBAL TRADING INDIA PVT LTD}

^{CARGILL OCEAN TRANSPORTATION (SINGAPORE) PTE. LTD.}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation: AVERAGE}

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 16/10/2007}

^{Balance Sheet Date: 31/05/2007 31/05/2006}

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 3,030,019 1,059,747}

^{Investments 18,174,643 14,979,514}

^{Total Fixed Assets: 21,204,662 16,039,261}

^{Inventories: 217,071,262 54,165,088}

^{Receivables: 401,133,486 253,028,239}

^{Cash,Banks, Securitis: 55,410,745 57,831,427}

^{Other current assets: 568,262,991 515,935,565}

^{Total Current Assets: 1,241,878,484 880,960,319}

^{TOTAL ASSETS: 1,263,083,146 896,999,580}

^{--- LIABILITIES ---}

^{Equity capital: 7,676,243 7,676,243}

^{Reserves: 1,960,839 201,500}

^{Profit & lost Account: 194,205,462 123,398,651}

^{Other: 223,775 156,878}

^{Total Equity: 204,066,319 131,433,272}

^{L/T deffered taxes: 4,791,299 6,447,034}

^{Other long term Liab.: 225,645}

^{Total L/T Liabilities: 5,016,944 6,447,034}

^{Trade Creditors: 310,215,017 126,009,490}

^{Prepay. & Def. charges: 154,448,622 352,205,763}

^{Advanced payments: 14,674,287 2,426,550}

^{Due to Bank: 665,058 3,165,719}

^{Provisions: 6,041,892 6,354,147}

^{Other Short term Liab.: 567,955,007 268,957,605}

^{Total short term Liab.: 1,053,999,883 759,119,274}

^{TOTAL LIABILITIES: 1,059,016,827 765,566,308}

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

^{Net Sales 5,951,294,697 4,922,013,129}

^{Purchases,Sces & Other Goods: 5,852,586,383 4,878,343,501}

^{Gross Profit: 98,708,314 43,669,628}

^{NET RESULT BEFORE TAX: 78,129,574 41,223,518}

^{Tax : 7,322,763 11,581,870}

^{Net income/loss year: 70,806,811 29,641,648}

^{Interest Paid: 24,603,974 27,334,225}

^{Depreciation: 792,587 649,135}

^{Directors Emoluments: 14,654 8,211}

^{Wages and Salaries: 25,409,803 16,524,199}

RATIOS

^{31/05/2007 31/05/2006}

^{Turnover per employee: 14878236.74 12305032.82}

^{Net result / Turnover(%): 0.01 0.01}

^{Fin. Charges / Turnover(%): 0.00 0.01}

^{Stock / Turnover(%): 0.04 0.01}

^{Net Margin(%): 1.19 0.60}

^{Return on Equity(%): 34.70 22.55}

^{Return on Assets(%): 5.61 3.30}

^{Net Working capital: 187878601.00 121841045.00}

^{Cash Ratio: 0.05 0.08}

^{Quick Ratio: 0.43 0.41}

^{Current ratio: 1.18 1.16}

^{Receivables Turnover: 24.26 18.51}

^{Leverage Ratio: 5.19 5.82}

^{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 FINANCIAL CONDITION OF THE GROUP WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 55.26% FROM US$131,433,272 IN FY 2006 TO US$204,066,319 IN FY 2007. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$194,205,462 (2006: US$123,398,651); A RISE OF 57.38% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER SHORT-TERM LIABILITIES WHICH MADE UP 53.89% (2006: 35.43%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$567,955,007 (2006: US$268,957,605). THE BREAKDOWN IS AS FOLLOWS:}

^{- ULTIMATE HOLDING CORPORATION}

^{- 2007: US$256,518 (2006: US$329,582)}

^{- IMMEDIATE HOLDING CORPORATION}

^{- 2007: US$2,529,881 (2006: US$962,659)}

^{- RELATED CORPORATIONS}

^{- 2007: US$3,657,205 (2006: US$24,695,835)}

^{- LIABILITY FOR SHORT TERM ACCUMULATING ABSENCES}

^{- 2007: US$724,782 (2006: US$873,360)}

^{- UNREALISED LOSSES FROM OFF-BALANCE SHEET FINANCIAL INSTRUMENTS}

^{- 2007: US$355,208,782 (2006: US$85,132,526)}

^{- CURRENT ACCOUNT WITH A RELATED CORPORATION}

^{- 2007: US$205,577,839 (2006: US$156,963,643)}

^{AMOUNT DUE TO BANKS OF US$665,058 (2006: US$3,165,719) CONSISTED OF:}

^{- SHORT-TERM BANK LOANS - 2007: US$665,058 (2006: US$3,165,719)}

^{IN ALL, LEVERAGE RATIO FELL FROM 5.82 TIMES TO 5.19 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 1.18 TIMES, UP FROM 1.16 TIMES AND QUICK RATIO IMPROVED TO 0.43 TIMES FROM 0.41 TIMES IN FY 2006.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 54.19% FROM US$121,841,045 IN FY 2006 TO US$187,878,601.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{- QUOTED EQUITY SECURITIES}

^{HELD FOR TRADING - 2007: US$38,106,761 (2006: US$42,393,635)}

^{AVAILABLE FOR SALE - 2007: US$1,298,381 (2006: -)}

^{- CASH AT BANKS AND IN HAND - 2007: US$16,005,603 (2006: US$15,437,792)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 20.91% FROM US$4,922,013,129 IN FY 2005 TO US$5,951,294,697 AND NET PROFIT ROSE BY 1.39 TIMES TO US$70,806,811. (2006: US$29,641,648). HENCE, NET MARGIN ROSE TO 1.19% (2006: 0.60%).}

^REVENUE:

^{- PHYSICAL SALE OF COMMODITIES}

^{- 2007: US$5,899,299,961 (2006: US$4,855,715,454)}

^{- FREIGHT TRADING INCOME}

^{- 2007: US$51,994,736 (2006: US$66,297,675)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.}

^{AVERAGE COLLECTION PERIOD HAS INCREASED FROM 18.51 DAYS TO 24.26 DAYS. A HIGHER AVERAGE COLLECTION PERIOD POSES GREATER RISK OF TURNING INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT SERVICING ABILITY MAY NOT BE AFFECTED IF TRADE RECEIVABLES ARE FORTHCOMING.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{INTEREST-BEARING LIABILITIES}

^{THE INTEREST-BEARING LIABILITIES ARE UNSECURED SHORT TERM BANK LOANS}

^{BORROWED BY A SUBSIDIARY OF THE COMPANY.}

^{MATURITY OF LIABILITIES}

^{WITHIN 1 YEAR - 2007: US$665,058 (2006: US$3,165,719)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 05/12/1967 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "CARGILL COMMODITY TRADING PTE. LTD.".}

^{SUBSEQUENTLY, ON 29/07/1993, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE OF "CARGILL INTERNATIONAL TRADING PTE LTD".}

^{THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 1,795,565 SHARES, OF A VALUE OF S$16,206,500.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{(1) COMMODITY BROKERS AND DEALERS}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF}

^{THE COMPANY CONSIST OF THOSE RELATING TO THE BUSINESS OF COMMODITIES}

^TRADING.

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

^BACKGROUND

^{SUBJECT HAS BEEN AWARDED APPROVED INTERNATIONAL TRADE ("AIT") INCENTIVE TILL MAY 2003. UNDER THE AIT INCENTIVE, INCOME DERIVED FROM QUALIFYING TRADING TRANSACTIONS IN APPROVED PRODUCTS BY THE COMPANY ARE TAXED AT THE CONCESSIONARY RATE OF 10%.}

^{SUBJECT ACTS AS THE REGIONAL HEADQUARTERS FOR CARGILL'S ASIA-PACIFIC OPERATIONS AND IS MAINLY INVOLVED IN TRADING OF COMMODITIES SUCH AS STEEL, FOOD AND FEED GRAINS, TROPICAL OILS, RUBBER AND COCOA. IT FOCUSSES LARGELY ON COMMODITY TRADE FINANCE AND MERCHANTING IN THE}

^REGION.

^{RAW MATERIALS ARE IMPORTED FROM SOUTH EAST ASIAN COUNTRIES SUCH AS INDONESIA AND MALAYSIA AND RE-EXPORTED IN RESPONSE TO OVERSEAS DEMAND}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* COMMODITIES TRADERS}

^ACTIVITIES:

^{* ASIAN TRADING AND MARKETING ARM OF CARGILL INTERNATIONAL SA}

^{* COMMODITIES TRADING (SUCH AS FOOD, RICE, MINERAL, RUBBER, TEEL,}

^ETC.)

^{NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE- INTERVIEW WAS NOT GRANTED. HOWEVER, FROM THE PRIOR TELE-INTERVIEW}

^{CONDUCTED, THE FOLLOWING WAS GATHERED:}

^{IMPORT COUNTRIES:}

^{* WORLDWIDE (MALAYSIA, INDONESIA, ETC)}

^{EXPORT COUNTRIES:}

^{* ASIA-PACIFIC REGION (CHINA, THAILAND, ETC)}

^{TERMS OF PAYMENT:}

^{* TRADE AND OTHER RECEIVABLES: TELEGRAPHIC TRANSFER, ETC}

^{* TRADE AND OTHER PAYABLES: TELEGRAPHIC TRANSFER, ETC}

^{SUBJECT IS A MEMBER OF FOLLOWING ENTITIES:}

^{* PALM OIL REFINERS ASSOCIATION OF MALAYSIA}

^{* SINGAPORE CHINESE CHAMBERS OF COMMERCE & INDUSTRY}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE}

^{DURING THE FINANCIAL YEAR, CARGILL ASIA PACIFIC HOLDINGS PTE LTD, INCORPORATED IN THE REPUBLIC OF SINGAPORE, BECAME THE IMMEDIATE HOLDING CORPORATION BY ACQUIRING THE SHARES OF THE COMPANY FROM CARGILL INCORPORATED, INCORPORATED IN THE UNITED STATES OF AMERICA. THE ULTIMATE HOLDING CORPORATION IS CARGILL INCORPORATED, INCORPORATED}

^{IN THE UNITED STATES OF AMERICA.}

^{THE IMMEDIATE AND ULTIMATE HOLDING COMPANIES DURING THE FINANCIAL YEAR ARE CARGILL ASIA PACIFIC HOLDINGS PTE LTD AND CARGILL INCORPORATED, INCORPORATED IN THE REPUBLIC OF SINGAPORE AND UNITED STATES OF AMERICA RESPECTIVELY.}

^{NUMBER OF EMPLOYEES:}

^{* 400 (AS OF 2006)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{300 BEACH ROAD}

^{#23-01 THE CONCOURSE}

^{SINGAPORE 199555}

^{DATE OF CHANGE OF ADDRESS: 16/08/1993}

^{- RENTED PREMISE}

^{- PREMISE OWNED BY: BY HONG FOK LAND PTE LTD}

^{WEBSITE : http://www.cargill.com}

^{EMAIL : -}

MANAGEMENT

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

^{1) SYED MUNIR-UL HASAN, A PAKISTANI}

^{- BASED IN SINGAPORE.}

^{2) JERAL SYLVESTER D'SOUZA, A BRITISH}

^{- BASED IN SINGAPORE.}

^{3) PAUL JOHN HICKMAN, A BRITISH}

^{- BASED IN SINGAPORE.}

^{4) LYE PENG YEE, A SINGAPOREAN}

^{- 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.

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%)

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