MIRA INFORM REPORT

Report Date :

01.08.2008

IDENTIFICATION DETAILS

Name :	VIRGOZ OILS AND FATS PTE. LTD.
Registered Office :	^20 Cecil Street ^#18-08 ^Equity Plaza ^049705
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^14.09.2004
Com. Reg. No.:	^200411727K
Legal Form :	^Exempt Pte Ltd
Line of Business :	^Import and Export of Inedible Oils and Fats, Palm Oil Commodities and related Goods.

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 :	Clear

Subject Company

VIRGOZ OILS AND FATS PTE. LTD.

Line Of Business 

^{IMPORT AND EXPORT OF INEDIBLE OILS AND FATS, PALM OIL COMMODITIES AND RELATED GOODS.}

Parent Company

N/A

Financial Elements

FY 2006

COMPANY

Sales : US$328,043,175

Networth : US$ 4,373,431

Paid-Up Capital : US$ 1,208,448

Net result : US$ 1,512,529

Net Margin(%) : 0.46

Return on Equity(%) : 34.58

Leverage Ratio : 4.95

COMPANY IDENTIFICATION

^{Subject Company : VIRGOZ OIL AND FATS PTE. LTD.}

^{Former Name :}

^{Business Address : 20 CECIL STREET}

^#18-08

^{EQUITY PLAZA}

^{Town : SINGAPORE}

^{Postcode : 049705}

^{County :}

^{Country : Singapore}

^{Telephone : 6532 7777}

^{Fax : 6532 0787}

^{ROC Number : 200411727K}

^{Reg. Town :}

SUMMARY

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

^{Legal Form : Exempt Pte Ltd}

^{Date Inc. : 14/09/2004}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 328,043,175}

^{Networth : 4,373,431}

^{Capital : -}

^{Paid-Up Capital : 1,208,448}

^{Employees : 10}

^{Net result : 1,512,529}

^{Share value : -}

^{Auditor : FOO KON TAN GRANT THORNTON}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 2,000,000 SGD 2,000,000.00}

^{PAID-UP ORDINARY - SGD 2,000,000.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 14/09/2005}

PRINCIPAL(S)

^{ROBERT G5786324U Director}

DIRECTOR(S)

^{ROBERT G5786324U Director}

^{Appointed on : 14/09/2004}

^{Street : 205 RIVER VALLEY ROAD}

^#04-79

^{Town: SINGAPORE}

^{Postcode: 238274}

^{Country: Singapore}

^{DIANA VIRGO N145095 Director}

^{Appointed on : 14/09/2004}

^{Street : JLN. ISKANDAR MUDA NO. 107}

^{Town: MEDAN}

^{Postcode: 20154}

^{Country: Indonesia}

^{JHONNY VIRGO G5784044M Director}

^{Appointed on : 25/10/2004}

^{Street : 205 RIVER VALLEY ROAD}

^#04-79

^{Town: SINGAPORE}

^{Postcode: 238274}

^{Country: Singapore}

^{LIN MOI HEYANG S2750922C Company Secretary}

^{Appointed on : 29/06/2007}

^{Street : 210 ANG MO KIO AVENUE 3}

^#07-1614

^{Town: SINGAPORE}

^{Postcode: 560210}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{LATHIKA DEVI AMMA D/O K R PILLAY S1552769B}

^{TAN GEK MING @ CHEN YUE MING S7441066I}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{PALM OIL Code:15870}

^{OILS - WHSLE Code:15515}

^{BASED ON ACRA'S RECORD}

^{1) WHOLESALE OF PALM OIL; IMPORT & EXPORT OF INEDIBLE OILS AND FATS,}

^{PALM OIL COMMODITIES & RELATED GOODS}

^BY-PRODUCTS

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED}

^{DBS BANK LTD.}

^{STANDARD CHARTERED BANK}

^{ING BANK N V}

^{[INTERNATIONALE NEDERLANDEN BANK N V ]}

SHAREHOLDERS(S)

^{ROBERT 800,000 Private Person}

^{Street : 205 RIVER VALLEY ROAD}

^#04-79

^{Town: SINGAPORE}

^{Postcode: 238274}

^{Country: Singapore}

^{MARIA WIJAYA 800,000 Private Person}

^{Street : JLN. ISKANDAR MUDA NO. 107}

^{Town: MEDAN}

^{Postcode: 20154}

^{Country: Indonesia}

^{DIANA VIRGO 200,000 Private Person}

^{Street : JLN. ISKANDAR MUDA NO. 107}

^{Town: MEDAN}

^{Postcode: 20154}

^{Country: Indonesia}

^{JHONNY VIRGO 200,000 Private Person}

^{Street : 205 RIVER VALLEY ROAD}

^#04-79

^{Town: SINGAPORE}

^{Postcode: 238274}

^{Country: Singapore}

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

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

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

^{Date Account Lodged: 19/04/2006}

^{Balance Sheet Date: 31/12/2006 31/12/2005}

^{Number of weeks: 52 67}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 68,918 84,529}

^{Total Fixed Assets: 68,918 84,529}

^{Receivables: 24,708,051 6,578,844}

^{Cash,Banks, Securitis: 314,304 3,188,752}

^{Other current assets: 916,997 11,402}

^{Total Current Assets: 25,939,352 9,778,998}

^{TOTAL ASSETS: 26,008,270 9,863,527}

^{--- LIABILITIES ---}

^{Equity capital: 1,208,448 1,208,448}

^{Profit & lost Account: 3,164,983 1,652,454}

^{Total Equity: 4,373,431 2,860,902}

^{Trade Creditors: 15,568,298 6,433,487}

^{Provisions: 165,608 184,915}

^{Other Short term Liab.: 5,900,933 384,223}

^{Total short term Liab.: 21,634,839 7,002,625}

^{TOTAL LIABILITIES: 21,634,839 7,002,625}

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

^{Net Sales 328,043,175 150,274,677}

^{Purchases,Sces & Other Goods: 323,119,230 147,295,001}

^{Gross Profit: 4,923,945 2,979,676}

^{NET RESULT BEFORE TAX: 1,682,529 1,837,369}

^{Tax : 170,000 184,915}

^{Net income/loss year: 1,512,529 1,652,454}

^{Interest Paid: 647,743 379,009}

^{Depreciation: 16,555 15,339}

^{Directors Emoluments: 37,633 35,096}

^{Wages and Salaries: 183,190 91,953}

^{Financial Income: 18,554 6,139}

RATIOS

^{31/12/2006 31/12/2005}

^{Turnover per employee: 32804317.50 15027467.70 Net result / Turnover(%): 0.00 0.01 Net Margin(%): 0.46 1.10 Return on Equity(%): 34.58 57.76 Return on Assets(%): 5.82 16.75 Net Working capital: 4304513.00 2776373.00 Cash Ratio: 0.01 0.46 Quick Ratio: 1.16 1.39 Current ratio: 1.20 1.40 Receivables Turnover: 27.12 15.76 Leverage Ratio: 4.95 2.45}

^{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 COMPANY WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 52.87% TO US$4,373,431 (2005: US$2,860,902). THIS WAS ATTRIBUTED TO A RISE IN ACCUMULATED PROFITS BY 91.53% TO US$3,164,983 IN FY 2006 FROM US$1,652,454 IN FY 2005.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 71.96% (2005: 91.87%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$15,568,298 (2005: US$6,433,487). TRADE CREDITORS CONSISTED OF THE FOLLOWING:}

^{TRADE PAYABLES:}

^{* A RELATED COMPANY - 2006: US$12,605,824 (2005: US$5,463,859)}

^{* THIRD PARTIES - 2006: US$ 2,962,474 (2005: US$ 969,628)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 2.45 TIMES IN FY 2005 TO 4.95 TIMES IN FY 2006 INDICATING THAT THE COMPANY'S LIABILITIES WERE MORE SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY. A LOWER RATIO WOULD BE MORE DESIRABLE AS THE LOWER THE RATIO, THE GREATER THE FINANCIAL SAFETY AND OPERATING FREEDOM FOR THE COMPANY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS CONSIDERED PASSABLE AS SEEN FROM NET WORKING CAPITAL AND LIQUIDITY RATIOS. NET WORKING CAPITAL INCREASED BY 55.04% FROM US$2,776,373 IN FY 2005 TO US$4,304,513 IN FY 2006.}

^{ON THE OTHER HAND, BOTH CURRENT AND QUICK RATIOS OSTED LOWER BUT WERE SUFFICIENT TO 1.20 TIMES (2005: 1.140 TIMES) AND 1.16 TIMES (2005: 1.36 TIMES) RESPECTIVELY.}

^{PROFITABILITY:}

^{SUBJECT POSTED AN INCREASE IN REVENUE OF 1.18 TIMES WHICH AMOUNTED TO US$328,043,175 (2005: US$150,274,677). HOWEVER, NET PROFIT FELL BY 8.47% WHICH AMOUNTED TO US$1,512,529 (2005: US$1,652,454). AS A RESULT, NET MARGIN FELL TO 0.46% (2005: 1.10%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING. IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 27 DAYS (2005: 16 DAYS).}

^{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 NATIONA 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 SUBJECT WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 14/09/2004 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "VIRGOZ OILS AND FATS PTE. LTD.".}

^{SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 2,000,000 SHARES OF A VALUE OF S$2,000,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF PALM OIL; IMPORT & EXPORT OF INEDIBLE OILS AND FATS, PALM OIL COMMODITIES & RELATED GOODS}

^{2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); WHOLESALE OF PALM OIL COMMODITIES, RELATED SUBSTANCES AND BY-PRODUCTS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE OF IMPORT AND EXPORT OF INEDIBLE OILS AND FATS, PALM OIL COMMODITIES AND RELATED GOODS.}

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

^{SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: OILS - EDIBLE PLANTS.}

^PRODUCTS:

^{* PALM OILS}

^{* FATS}

^{IMPORT COUNTRY:}

^{* INDONESIA}

^{MARKETS SERVED:}

^{* WORLDWIDE}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL}

^{NUMBER OF EMPLOYEES:}

^{* 10 - AS OF 2006}

^{REGISTERED AND BUSINESS ADDRESS:}

^{20 CECIL STREET}

^#18-08

^{EQUITY PLAZA}

^{SINGAPORE 049705}

^{DATE OF CHANGE OF ADDRESS: 18/02/2005}

^{- RENTED PREMISE}

^{- PREMISE OWNED BY: D.L. PROPERTIES LTD.}

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

^{EMAIL : virgoz@virgoz.com}

MANAGEMENT

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

^{1) JHONNY VIRGO, AN INDONESIAN}

^{- BASED IN SINGAPORE}

^{2) ROBERT, AN INDONESIAN}

^{- BASED IN SINGAPORE}

^{3) DIANA VIRGO, AN INDONESIAN}

^{- BASED IN INDONESIA}

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 6.0% IN 4Q 2007, SLOWER THAN THE 6.8% GROWTH IN 3Q 2007. RETAIL SALES FELL BY 2.5%, FOLLOWING A 1.5% GROWTH IN 3Q 2007.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 22.2% IN 4Q 2007 OVER 4Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 4.8%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF PETROLEUM AND PETROLEUM PRODUCTS (47.3%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (29.8%). OTHER WHOLESALE SEGMENTS THAT REPORTED DOUBLE-DIGIT GROWTH WERE WHOLESALING OF GENERAL WHOLESALE TRADE, HOUSEHOLD EQUIPMENT AND FURNITURE AND CHEMICALS AND CHEMICAL PRODUCTS.

ON THE OTHER HAND, WHOLESALE SEGMENT THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-35.8%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 1.6% IN 4Q 2007 OVER 4Q 2006. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE SLIGHTLY BY 0.2%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 4Q 2007 ROSE BY 7.1% OVER 3Q 2007. EXCLUDING PETROLEUM, DOMESTIC SALES CONTRACTED BY 2.9%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 4Q 2007 OVER PREVIOUS QUARTER. PETROLEUM AND PETROLEUM PRODUCTS EXPANDED BY 20.0%. GENERAL WHOLESALE TRADE AND INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO REGISTERED

DOUBLE-DIGIT GROWTH OVER PREVIOUS QUARTER.

ON THE OTHER HAND, SALES OF FOOD, BEVERAGES AND TOBACCO AND ELECTRONIC COMPONENTS FELL IN 4Q 2007 OVER 3Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 4Q 2007 ROSE BY 27.0%, IN COMPARISON TO 4Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 15.3%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (40.6%) PETROLEUM AND PETROLEUM PRODUCTS (39.9%) SHIP CHANDLERS AND BUNKERING (24.3%) INDUSTRIAL AND CONSTRUCTION MACHINERY (18.2%) CHEMICALS AND CHEMICAL PRODUCTS (16.4%) ELECTRONIC COMPONENTS (12.1%) TIMBER, PAINT AND CONSTRUCTION MATERIALS (11.1%).

ON THE OTHER HAND, OVERSEAS SALES OF TELECOMMUNICATIONS AND COMPUTERS FELL BY 2.8%

IN 4Q 2007 OVER 4Q 2006.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 11.5% IN 4Q 2007 OVER 4Q 2006.

EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 15.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 4Q 2007 ROSE BY 11.7% OVER 3Q 2007. EXCLUDING PETROLEUM, IT GREW BY 6.0%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 4Q 2007 WITH THE EXCEPTION OF THE ELECTRONIC COMPONENTS SECTOR. THOSE SECTORS THAT REGISTERED DOUBLE-DIGIT GROWTH WERE WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS, TELECOMMUNICATIONS AND COMPUTERS, INDUSTRIAL AND CONSTRUCTION MACHINERY AND CHEMICALS AND CHEMICAL PRODUCTS.

RETAIL TRADE

THE OVERALL RETAIL SALES CONTRACTED BY 2.5%, IN CONTRAST TO THE 1.5% GROWTH IN 3Q 2007. THE SECTOR THAT RECORDED THE LARGEST DECLINE WERE MOTOR VEHICLES, FOLLOWED BY PROVISION AND SUNDRY SHOPS, FOOD AND BEVERAGES, WATCHES AND JEWELLERY AND MEDICAL GOODS AND TOILETRIES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.2%, A DECLINE FROM THE 6.O% GROWTH IN 3Q 2007.

NEWS

SURPRISING DROP IN RETAIL SALES

RETAIL SALES FELL UNEXPECTEDLY IN FEBRUARY, THE FIRST TIME IN SEVEN MONTHS, AS INFLATION HIT 26 YEAR HIGHS AND WORRIES GREW ABOUT THE WORLD ECONOMY. SHOPS, SUPERMARKETS AND OTHER RETAILERS SAW REVENUES FELL 1.3% FROM A YEAR EARLIER, AS CAR SALES DECLINED 10.6% AND FOOD AND BEVERAGES SALES PLUNGED 21.8%.

THE OVERALL CONTRACTION BY THE SECTOR WOULD HAVE BEEN BIGGER IF NOT FOR MUCH HIGHER PRICES THIS YEAR. IN CONSTANT PRICES TERMS, SALES FELL 5.7%. THIS IS THE WORST READING SINCE THE 5.0% DECLINE IN MARCH 2007, IF ONE WERE TO IGNORE THE 2.0% CONTRACTION IN JULY THAT WAS DUE TO THE HIKE IN THE GOODS AND SERVICES TAX,” SAID HSBC ECONOMIST PRAKRITI SOFAT.

ANALYSTS SAID RISING LIVING COSTS AND UNCERTAINTY ABOUT THE ECONOMY WOULD AFFECT SINGAPORE CONSUMER’S SPENDING THIS YEAR. MANY, HOWEVER, REMAIN LARGELY OPTIMISTIC ABOUT THE DOMESTIC RETAIL SCENE, SAYING THE POOR FEBRUARY SHOWING COULD BE A STATISTICAL BLIP.

DOMESTIC DEMAND CONDITIONS REMAIN POSITIVE, HELPED BY THE GOVERNMENT WHICH IS GIVING CASH FROM LAST YEAR’S SURPLUS TO THE WHOLE POPULATION AND ISSUING FOOD VOUCHERS TO THE POOR. “LOW INTEREST RATES AND A HEALHY JOBS MARKET SHOULD KEEP SPENDING FIRM,” SAID HSBC’S MS SOFAT. SHE ADDED THAT FEBRUARY’S DECLINE WAS DUE LARGELY TO A HIGH BASE SET THE PREVIOUS YEAR AND PREDICTED THAT MARCH SALES WOULD BOUNCE BACK WITH A 15.0% SURGE. ALSO, IF COMPARED WITH JANUARY, FEBRUARY SALES ROSE 8.8% AFTER ADJUSTING FOR SEASONAL EFFECTS. THIS WAS THE STRONGEST PERFORMANCE IN FOUR YEARS, SHE SAID.

CIMB-GK ECONOMIST SONG SENG WUN SAID MUCH OF THE POOR PERFORMANCE CAME ON THE BACK OF WEAKER CAR SALES. EXCLUDING THOSE, RETAIL SALES WOULD HAVE RISEN 2.9%. CAR SALES HAVE BEEN HURT SINCE OCTOBER BY RISING CERTIFICATE OF ENTITLEMENT PRICES, CAUSED BY AN EXPECTED CUT IN QUOTAS FROM NEXT MONTH AND SURGING PUMP PRICES.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 4% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THE MAJORITY OF WHOLESALERS OF PETROLEUM AND PETROLEUM PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS, INDUSTRIAL MACHINERY AND EQUIPMENT AND COMPUTERS AND ACCESSORIES FORECAST BUSINESS OUTLOOK TO REMAIN THE SAME IN THE FIRST SIX MONTHS OF 2008 COMPARED WITH THE LAST SIX MONTHS IN 2007.

A NET WEIGHTED BALANCE OF 12% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING JUNE 2008. AS A RESULT OF THE REDUCED CERTIFICATE OF ENTITLEMENT (COE) QUOTA, MOTOR VEHICLES RETAILERS ARE ESPECIALLY CONCERNED WITH THE SALES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

THE STRAITS TIMES

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.42.40
UK Pound	1	Rs.83.57
Euro	1	Rs.66.02

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