MIRA INFORM REPORT

Report Date :

21.08.2008

IDENTIFICATION DETAILS

Name :	BASF SOUTHEAST ASIA PTE LTD
Formerly Known As :	^BASF SOUTH EAST ASIA REGIONAL
Registered Office :	7 Temasek Boulevard #35-01 Suntec Tower One, 038987
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^28.06.1978
Com. Reg. No.:	^97801536N
Legal Form :	^Pte Ltd
Line of Business :	^Sale of Chemical Products and to act as a Service Company to its Holding Company and other Related Companies.

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 :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

BASF SOUTHEAST ASIA PTE LTD

Line Of Business 

^{SALE OF CHEMICAL PRODUCTS AND TO ACT AS A SERVICE COMPANY TO ITS HOLDING COMPANY AND OTHER RELATED COMPANIES.}

Parent Company

^{BASF AKTIENGESELLSCHAFT}

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : US$2,923,290,000

Networth : US$ 518,557,000

Paid-Up Capital : US$ 293,820,000

Net result : US$ 58,377,000

Net Margin(%) : 2.00

Return on Equity(%) : 11.26

Leverage Ratio : 1.33

COMPANY IDENTIFICATION

^{Subject Company : BASF SOUTH EAST ASIA PTE LTD}

^{Former Name : BASF SOUTH EAST ASIA REGIONAL}

^{Business Address : 7 TEMASEK BOULEVARD}

^{#35-01 SUNTEC TOWER ONE}

^{Town : SINGAPORE}

^{Postcode : 038987}

^{County :}

^{Country : Singapore}

^{Telephone : 6337 0330}

^{Fax : 6334 0330}

^{ROC Number : 197801536N}

^{Reg. Town:}

PREVIOUS IDENTIFICATION

^{BASF SOUTH EAST ASIA REGIONAL HEADQUARTERS PTE. LTD. DATE}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 28/06/1978}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 2,923,290,000}

^{Networth : 518,557,000}

^{Capital : -}

^{Paid-Up Capital : 293,820,000}

^{Employees : 350}

^{Net result : 58,377,000}

^{Share value : -}

^{Auditor : KPMG}

^{BASED ON ACRA'S RECORD}

^{NO. OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY : 520,300 SGD 520,300,000}

^{PAID UP ORDINARY : - SGD 520,300,000}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 28/06/1978}

PRINCIPAL(S)

^{TOM GUSTAV WITZEL G5756034M Director}

DIRECTOR(S)

^{TAN TER YEE S1654262H Company Secretary}

^{Appointed on : 30/09/2001}

^{Street : 17 HUME AVENUE}

^#04-01

^{Town: SINGAPORE}

^{Postcode: 598726}

^{Country: Singapore}

^{TOM GUSTAV WITZEL G5756034M Director}

^{Appointed on : 01/09/2004}

^{Street : 7 TEMASEK BOULEVARD}

^#35-01

^{SUNTEC TOWER ONE}

^{Town: SINGAPORE}

^{Postcode: 038987}

^{Country: Singapore}

^{JOHN DUNCAN FASTIER G5830060N Director}

^{Appointed on : 01/09/2005}

^{Street : 4 ARDMORE PARK}

^#09-01

^{Town: SINGAPORE}

^{Postcode: 259960}

^{Country: Singapore}

^{HERMANN ALTHOFF G5846395M Director}

^{Appointed on : 05/01/2006}

^{Street : 7 TEMASEK BOULEVARD}

^#35-01

^{SUNTEC TOWER ONE}

^{Town: SINGAPORE}

^{Postcode: 038987}

^{Country: Singapore}

^{YANG NELLIE S0163132B Company Secretary}

^{Appointed on : 31/12/2005}

^{Street : 38 CORONATION ROAD WEST}

^#03-01

^{ASTRID MEADOWS}

^{Town: SINGAPORE}

^{Postcode: 269257}

^{Country: Singapore}

^{WOLFGANG HAPKE 334112344 Director}

^{Appointed on : 17/04/2006}

^{Street : HOUSE NO. 10}

^{7 STANLEY BEACH ROAD}

^{TAI TAM}

^{Town: HONG KONG}

^Postcode:

^{Country: Hong Kong}

^{TILMAN KRAUCH 4156050597 Director}

^{Appointed on : 17/04/2006}

^{Street : HOUSE #8, 2 BARKER ROAD}

^{THE PEAK}

^{Town: HONG KONG}

^Postcode:

^{Country: Hong Kong}

^{TOBIAS DRATT 355706352 Director}

^{Appointed on : 18/06/2007}

^{Street : FLAT A, 1/F, HOUSE IV}

^{1 PLANTATION ROAD}

^{HILLVIEW COURT, THE PEAK}

^{Town: HONG KONG}

^Postcode:

^{Country: Hong Kong}

FORMER DIRECTOR(S)

^{CELINA GOH SU YIN S1707084C}

^{TAN MEI YING DIANA S1788152C}

^{WERNER FRIDOLIN BURGERT F5641952R}

^{VICTOR SZECHENYI 00AE18522}

^{RALF WILHELM @ WALTER NEUMANN F5608627R}

^{DIETER SCHERF 2200013471}

^{JAIME BORBON MENDOZA 22010097}

^{LIM KENG HONG ALVIN S1650302I}

^{GRAHAM NEVILLE MEANS F0979696R}

^{RALF JOACHIM HEROLD F5513314W}

^{ECKHARD HILGEMANNN F5598060T}

^{THOMAS HUFNAGEL F5624676L}

^{SRINIVASAN REGUNATHAN G5619921M}

^{DOREEN NG MEI LING S7439674G}

^{HARALD WERNER ROBERT LAUKE F5602097R}

^{NICHOLAS CHAN WAI-KUIN S1746426D}

^{AZIMA MOIZ S6918588F}

^{WILLY BERT HOVEN-NIEVELSTEIN G5673974U}

^{LENG SIEW WEI ALOYSIUS S0081886J}

ACTIVITY(IES)

^{BUSINESS SERVICES Code:4}

^{BASED ON ACRA'S RECORD}

^{1) HEAD/REGIONAL OFFICES OF ENTERPRISES OPERATING ABROAD}

PREMISES/PROPERTY INFORMATIONS

^{Date: 28/06/2007}

^{Estimated Value :}

^{Tax rate: 10}

^{Site Address : 7 TEMASEK BOULEVARD}

^#35-01/02/03

^{Town: SINGAPORE}

^County:

^{Postcode: 038987}

^{Country: Singapore}

^{Annual Value: 911,000}

* 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

^{DBS BANK LTD.}

^{DEUTSCHE BANK AG}

ASSOCIATED COMPANY(IES)

^{ELLBA EASTERN (PTE) LTD}

^{83 CLEMENCEAU AVENUE}

^#04-00

^{SHELL HOUSE}

^{SINGAPORE Singapore}

SHAREHOLDERS(S)

^{BASF AKTIENGESELLSCHAFT 520,300 Company}

^{Street : CARL-BOSCH-STR. 38}

^LUDWIGSHAFEN

^{Town: REPUBLIC OF GERMANY}

^{Postcode: 67056}

^{Country: Germany}

FORMER SHAREHOLDER(S)

^{ZINSER ROBERT 1}

^{ERHARDT KLAUS D 1}

^{WOLF KURT MICHAEL 1}

HOLDING COMPANY

^{BASF AKTIENGESELLSCHAFT UF02604D % : 100}

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: 03/07/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005 Number of weeks: 52 52 Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp 447,000 449,000 Intangible Fixed Assets: 4,768,000 71,000 Tangible Fixed Assets: 42,977,000 31,650,000 Investments 238,205,000 252,345,000}

^{Total Fixed Assets: 286,397,000 284,515,000}

^{Inventories: 196,417,000 95,484,000 Receivables: 566,295,000 449,771,000 Cash,Banks, Securitis: 7,310,000 4,618,000 Other current assets: 145,206,000 237,827,000}

^{Total Current Assets: 915,228,000 787,700,000}

^{TOTAL ASSETS: 1,201,625,000 1,072,215,000}

^{--- LIABILITIES ---}

^{Equity capital: 293,820,000 293,820,000}

^{Profit & lost Account: 224,737,000 166,360,000}

^{Total Equity: 518,557,000 460,180,000}

^{L/T deffered taxes: 20,750,000 20,674,000}

^{Total L/T Liabilities: 20,750,000 20,674,000}

^{Trade Creditors: 568,674,000 518,885,000}

^{Prepay. & Def. charges: 32,249,000 30,292,000}

^{Provisions: 2,829,000 6,602,000}

^{Other Short term Liab.: 58,566,000 35,582,000}

^{Total short term Liab.: 662,318,000 591,361,000}

^{TOTAL LIABILITIES: 683,068,000 612,035,000}

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

^{Net Sales 2,923,290,000 2,750,644,000}

^{Purchases,Sces & Other Goods: 2,718,323,000 2,563,488,000 Gross Profit: 204,967,000 187,156,000 Result of ordinary operations 53,614,000 86,208,000}

^{NET RESULT BEFORE TAX: 60,225,000 89,523,000 Tax : 1,848,000 8,501,000 Net income/loss year: 58,377,000 81,022,000 Interest Paid: 4,256,000 3,375,000 Depreciation: 2,482,000 1,400,000 Dividends: Directors Emoluments: Wages and Salaries: 41,703,000 37,861,000 Financial Income: 10,867,000 6,690,000}

RATIOS

^{31/12/2006 31/12/2005 Turnover per employee: 8352257.14 7858982.86 Net result / Turnover(%): 0.02 0.03 Stock / Turnover(%): 0.07 0.03 Net Margin(%): 2.00 2.95 Return on Equity(%): 11.26 17.61 Return on Assets(%): 4.86 7.56 Dividends Coverage: Net Working capital: 252910000.00 196339000.00 Cash Ratio: 0.01 0.01 Quick Ratio: 0.87 0.77 Current ratio: 1.38 1.33 Receivables Turnover: 69.74 58.87 Leverage Ratio: 1.33 1.33}

^{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 STABLE TO FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED SOUND WITH NET WORTH IMPROVED BY 12.69% FROM US$460,180,000 IN FY 2005 TO US$518,557,000 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$224,737,000 (2005: US$166,360,000); A RISE OF 35.09% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 85.86% (2005: 87.74%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$568,674,000 (2005: US$518,885,000). THE BREAKDOWN IS AS FOLLOWS:}

^{* TRADE PAYABLES - 2006: US$86,263,000 (2005: US$29,093,000)}

^{* HOLDING COMPANY - 2006: US$302,009,000 (2005: US$363,080,000)}

^{* RELATED COMPANIES - 2006: US$130,531,000 (2005: US$87,501,000)}

^{* JOINT VENTURE - 2006: US$49,871,000 (2005: US$39,211,000)}

^{IN ALL, LEVERAGE RATIO REMAIN AT 1.33 TIMES AS A RESULT OF A PROPORTIONATE RISE IN TOTAL LIABILITIES AND TOTAL EQUITY.}

^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 1.38 TIMES, UP FROM 1.33 TIMES AND QUICK RATIO IMPROVED TO 0.87 TIMES FROM 0.77 TIMES IN FY 2005.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 28.81% FROM US$196,339,000 IN FY 2005 TO US$252,910,000.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 6.28% FROM US$2,750,644,000 IN FY 2005 TO US$2,923,290,000 BUT NET PROFIT FELL BY 27.95% TO US$58,377,000 (2005: US$81,022,000). THIS COULD BE DUE TO HIGHER ADMINISTRATIVE EXPENSES OF US$50,156,000 (2005: US$4,105,000). HENCE, NET MARGIN FELL TO 2.00% (2005: 2.95%).}

^REVENUE:

^{* SALE OF GOODS - 2006: US$2,864,336,000 (2005: US$2,704,136,000)}

^{* SERVICE INCOME - 2006: US$58,606,000 (2005: US$45,990,000)}

^{* COMMISSION INCOME - 2006: US$348,000 (2005: US$518,000)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, ITS INTEREST COVERAGE WAS HEALTHY CONSIDERING THAT ITS INTEREST EXPENSES WERE LOW AT US$4,256,000 IN FY 2006 (2005: US$3,375,000).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{* STAFF LOANS - 2006: US$447,000 (2005: US$449,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 28/06/1978 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "BASF SOUTH EAST ASIA PTE LTD".}

^{SUBSEQUENTLY, ON 23/02/1990, THE COMPANY CHANGED TO ITS NAMESTYLE AS "BASF SOUTH EAST ASIA REGIONAL HEADQUARTERS PTE. LTD.".}

^{SUBSEQUENTLY, ON 22/01/1998, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "BASF SOUTH EAST ASIA PTE LTD".}

^{COMPANY HAS ISSUED AND PAID UP CAPITAL OF 520,300 SHARES OF A VALUE OF S$520,300,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{1) HEAD/REGIONAL OFFICES OF ENTERPRISES OPERATING ABROAD}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF THE SALE OF CHEMICAL PRODUCTS AND TO ACT AS A SERVICE COMPANY TO ITS HOLDING COMPANY AND OTHER RELATED COMPANIES.}

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

^{BACKGROUND OF BASF GROUP:}

^{FROM A MANUFACTURER OF THE FIRST SYNTHETIC DYES IN GERMANY IN 1865, BASF HAS DEVELOPED INTO A LEADING GLOBAL CHEMICAL COMPANY PRODUCING A COMPREHENSIVE RANGE OF CHEMICAL PRODUCTS.}

^{WORLDWIDE, BASF HAS CUSTOMERS IN MORE THAN 170 COUNTRIES, PRODUCTION SITES IN 41 COUNTRIES AND APPROXIMATELY 82,000 EMPLOYEES. IN ASIA PACIFIC, BASF OWNS OR HAS EQUITY HOLDINGS IN 62 COMPANIES IN 15 COUNTRIES. THEY HAVE AROUND 10,000 EMPLOYEES ENGAGED IN THE DEVELOPMENT, MANUFACTURING AND SALE OF A WIDE RANGE OF PRODUCTS FOR AGRICULTURAL PRODUCTS AND NUTRITION, COLORANTS AND FINISHING PRODUCTS, CHEMICALS, AND PLASTICS AND FIBERS FOR NUMEROUS APPLICATIONS IN ALMOS ALL INDUSTRIES.}

^{BACKGROUND OF THE SUBJECT:}

^{THE SOUTHEAST ASIA DIVISION COVERS 24 COMPANIES IN 11 COUNTRIES}

^INCLUDING:

^{* ASEAN}

^{* THE INDIAN SUB-CONTINENT}

^{* AUSTRALIA/NEW ZEALAND}

^{* PLUS A REPRESENTATIVE OFFICE IN VIETNAM}

^{PRODUCTION FACILITIES ARE LOCATED IN:}

^{* SINGAPORE}

^{* MALAYSIA}

^{* INDONESIA}

^{* THAILAND}

^{* THE PHILIPPINES}

^{* AUSTRALIA}

^{* INDIAN SUB-CONTINENT}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* TRADING OF PETROCHEMICAL PRODUCTS AND REGIONAL HEADQUARTER}

^{* RESPONSIBILITIES FOR SEVERAL REGIONAL BUSINESS UNITS (RBUS) BASED IN SINGAPORE}

^{THE RBUS ARE:}

^{* FUNCTIONAL POLYMERS}

^{* PETROCHEMICALS}

^{* STYRENIC POLYMERS}

^{* ENGINEERING PLASTICS}

^{* AGRICULTURAL PRODUCTS}

^{MANAGES AND PROVIDES VALUE-ADDED SERVICES IN:}

^{* LOGISTICS DISTRIBUTION}

^{* MARKETING}

^{* FINANCE AND TREASURY}

^{* INFORMATION TECHNOLOGY AND APPLICATIONS}

^{FOR BASF SUBSIDIARIES IN THE ENTIRE ASIA PACIFIC REGION}

^{BASF'S MAJOR DISTRIBUTION HUB IN THE REGION. THE REGIONAL DISTRIBUTIO CENTER (RDC), OPENED IN 1998, RDC SERVES MORE THAN 50 PORTS IN ALL COUNTRIES IN ASIA FROM SINGAPORE, WITH MORE THAN 1000 PRODUCTS DELIVERED FROM BASF GLOBAL PRODUCTION NETWORK. THE RDC HAS BEEN ABLE TO OPTIMIZE INVENTORY LEVELS WHILE REDUCING THE LEAD-TIME REQUIRED TO SERVICE CUSTOMERS BY AS MUCH AS 60%.}

^{IN SINGAPORE, BASF SOUTH EAST ASIA HAS A 50:50 MANUFACTURING JOINT VENTURE WITH SHELL CHEMICALS, CALLED ELLBA EASTERN PTE LTD, FOR THE PRODUCTION OF STYRENE MONOMER AND PROPYLENE OXIDE (SM/PO) ON JURONG ISLAND.}

^{IN 2005, BASF ACQUIRED THE ELECTRONICS CHEMICAL BUSINESS OF MERCK. IN SINGAPORE, THIS INVOLVED ONE SITE IN TUAS, WHICH INCLUDES A WHOLLY- OWNED SUBSIDIARY AS WELL AS A JOINT VENTURE (SANTOKU BASF). PRODUCTS :}

^{* HIGH-PURITY PROCESS CHEMICALS}

^{* INNOVATIVE SPECIAL MIXTURES}

^{* ELECTRONIC CHEMICALS (MAINLY USED BY THE FLAT PANEL DISPLAY INDUSTRY}

^{AND THE SEMICONDUCTOR INDUSTRY FOR MICROCHIP PRODUCTION)}

^{RESEARCH FACILITY IN SINGAPORE}

^{COMPETENCE CENTER FOR NANOSTRUCTURED SURFACES}

^{* BASF'S FIRST RESEARCH FACILITY IN ASIA FOR NANOTECHNOLOGY}

^{(OPENED ON APRIL 28, 2006)}

^{GOALS OF THE NEW RESEARCH FACILITY -}

^{* TO REALIZE INNOVATIVE IDEAS IN PRODUCT DEVELOPMENT FOR EXISTING}

^{GROWTH MARKETS (AUTOMOTIVE, CONSTRUCTION, HOUSEHOLD, COSMETICS AND}

^ELECTRONICS)

^{* TO SUPPORT UNIQUE SCIENTIFIC SOLUTIONS FOR EMERGING MARKETS}

^{(ELECTRONICS, ENERGY AND RESOURCE CONSERVATION)}

^{* TO FURTHER DEVELOP THE ACTIVITIES IN NANOTECHNOLOGY AS A KEY}

^{TECHNOLOGY FOR BASF.}

^{PRODUCTS DEALINGS (TRADE NAMES) (APPLICATIONS):}

^{PLASTICS RAW MATERIALS}

^{* POLYSTYRENE (POLYSTYROL) (ELECTRONIC INDUSTRY)}

^{* EXPANDABLE POLYSTYRENE (STYROPOR) (PACKAGING APPLICATIONS AND}

^{CONSTRUCTION)}

^{* POLYURETHANES (LUPRANAT) (CONSTRUCTION AND HOME PRODUCTS INDUSTRIES)}

^{* ENGINEERING PLASTICS (ULTRADUR, ULTRAMID, ULTRAFORM, ULTRASON E AND}

^{ULTRASON S) (AUTOMOTIVE AND HOUSEHOLD APPLIANCES INDUSTRIES)}

^{INDUSTRIAL CHEMICALS}

^{* INORGANIC CHEMICALS, GLUES, PLASTICISERS (PVC, INDUSTRIAL CHEMICALS}

^{FOR PAINTS)}

^{* CHEMICAL INTERMEDIATES (PHARMACEUTICALS AND OTHER INDUSTRIAL RAW}

^MATERIALS)

^{FINE CHEMICALS}

^{* FRAGRANCE AROMA CHEMICALS (COSMETICS AND FOOD INDUSTRY)}

^{* VITAMINS (LUTAVIT)(FOOD AND FEED INDUSTRY)}

^{PIGMENTS & DYESTUFFS}

^{* AUXILIARIES AND FINISHING AGENTS (TEXTILES, PAINTS, PRINTING INKS,}

^{OFFICE REQUISITES AND OTHERS)}

^{FROM THE TELE-INTERVIEW CONDUCTED THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2008: 350}

^{NO OTHER TRADE INFORMATION IS AVAILABLE}

^{THE COMPANY IS A SUBSIDIARY OF BASF AKTIENGESELLSCHAFT, INCORPORATED IN THE FEDEAL REPUBLIC OF GERMANY WHICH IS ALSO THE COMPANY'S ULTIMATE HOLDING COMPANY.}

^{NUMBER OF EMPLOYEES: (31 DECEMBER)}

^{* COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE; 2004: 318;}

^{2003: 312)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{7 TEMASEK BOULEVARD}

^{#35-01 SUNTEC TOWER ONE}

^{SINGAPORE 038987}

^{DATE OF CHANGE OF ADDRESS: 04/12/1997}

^{- OWNED PREMISE}

^{- SOUTH EAST ASIA REGIONAL HEADQUARTER}

^{OTHER BUSINESS ADDRESSES:}

^{61 SCIENCE PARK ROAD}

^#03-01

^{SINGAPORE 117525}

^{60 WOODLANDS INDUSTRIAL PARK D ST 2}

^{SINGAPORE 738406}

^{8 ANG MO KIO AVE 12}

^{SINGAPORE 569709}

^{WEBSITE: http://www.basf.com.sg}

^{EMAIL : -}

MANAGEMENT

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

^{1) WOLFGANG HAPKE, A GERMAN}

^{- BASED IN HONG KONG.}

^{2) TOBIAS DRATT, A GERMAN}

^{- BASED IN HONG KONG.}

^{3) TILMAN KRAUCH, A GERMAN}

^{- BASED IN HONG KONG.}

^{4) TOM GUSTAV WITZEL, A GERMAN}

^{- BASED IN SINGAPORE.}

^{5) JOHN DUNCAN FASTIER, A NEW ZEALANDER}

^{- HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{BASF SINGAPORE PTE LTD}

^{6) HERMANN ALTHOFF, A GERMAN}

^{- BASED IN SINGAPORE.}

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.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

THE SINGAPORE ECONOMY GREW AT A HEALTHY PACE OF 6.7% IN 1Q 2008. ON AN ANNUALISED QUARTER-ON-QUARTER BASIS, GROWTH ROSE BY 14.6%, IN CONTRAST TO THE 4.8% DECLINE IN THE PREVIOUS QUARTER.

THE MANUFACTURING SECTOR ROSE BY 12.4% IN 1Q 2008, HIGHER THAN THE 0.2% IN 4Q 2007. THE GROWTH WAS MAINLY DRIVEN BY BIOMEDICAL MANUFACTURING.

ELECTRONICS, TRANSPORT ENGINEERING AND CHEMICALS SECTOR GREW AT A SLOWER PACE WHILE PRECISION ENGINEERING CONTRACTED.

THE FINANCIAL SERVICES SECTOR ROSE BY A SMALLER 13% IN 1Q 2008, FOLLOWING A 16% GAIN IN 4Q 2007. GROWTH WAS ACROSS THE BOARD, SUPPORTED BY ROBUST EXPANSIONS IN BOTH THE DOMESTIC AND OFFSHORE BANKING SEGMENTS.

HOWEVER, THE DOMESTIC STOCK MARKET FARED POORLY DUE TO CONCERNS OVER THE TURMOIL IN GLOBAL FINANCIAL MARKET. COMMERCIAL BANK LOANS REGISTERED THE HIGHEST GROWTH, WITH FIRM GAINS ACROSS MOST NON-BANK CUSTOMERS, PARTICULARLY BUILDING AND CONSTRUCTION.

THE CONSTRUCTION SECTOR RECORDED HIGH GROWTH, RISING BY 15%, FOLLOWING THE ROBUST 24% GROWTH IN 4Q 2007.

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 5.2% IN 1Q 2008, SLOWER THAN THE 6.0% GROWTH IN 4Q 2007. NON-OIL RE-EXPORTS GREW BY 2.0% IN 1Q 2008, IN CONTRAST TO THE 1.2% DECLINE IN 4Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY A MODERATE 1.4% IN 1Q 2008, FOLLOWING A HIGHER 9.9% GROWTH IN 4Q 2007.

THE TRANSPORT AND STORAGE SECTOR ROSE BY 5.5% IN 1Q 2008, MARGINALLY HIGHER THAN 5.4% IN 4Q 2007.

THE HOTELS AND RESTAURANTS SECTOR GREW BY A SLIGHTLY SMALLER 2.4% IN 1Q 2008, FOLLOWING THE 2.5% GROWTH IN 4Q 2007.

THE INFORMATION AND COMMUNICATIONS SECTOR ROSE 6.8% IN 1Q 2008, HIGHER THAN THE 6.1% IN 4Q 2007.

THE BUSINESS SERVICES SECTOR EXPANDED BY 8.3%, SLIGHTLY SLOWER THAN THE 8.7% GAIN IN 4Q 2007. GROWTH WAS LED BY REAL ESTATE, AND ARCHITECTURAL AND ENGINEERING SEGMENTS. OFFICE RENTS IN THE CENTRAL REGION CONTINUED TO RISE AT A MORE MODERATE PACE. THE OCCUPANCY RATE FOR OFFICE SPACE EASED SLIGHTLY BUT SUPPLY REMAINED TIGHT.

NEWS

BUMPY YEAR AHEAD, SAYS PM

AS EXPECTED, THE PRIME MINISTER’S NATIONAL DAY MESSAGE REFLECTED, AS HE SAID IN HIS VERY OPENING LINE, A SOMEWHAT GUARDED MOOD.

MR LEE HSIEN LOONG GAVE A SET OF STATISTICS WHICH SHOWED THAT SINGAPORE, ALTHOUGH IT MANAGED TO HOLD UP FOR A WHILE, IS SHOWING THE EFFECT OF THE STRAIN RUNNING THROUGH THE UNITED STATES ECONOMY, WHICH IS BEING SQUEEZED BY A HOUSING CRSIS, A FINANCIAL SYSTEM UNDER PRESSURE AND A CONSUMER WHO IS SPENDING LESS.

GROWTH FOR THE FIRST HALF OF THE YEAR WAS 4.5%, A DROP FROM THE 7.6% GROWTH OVER THE SAME PERIOD LAST YEAR. AND FOR THE WHOLE YEAR, THE GOVERNMENT HAS REVISED ITS GROWTH FORECAST DOWN TO BETWEEN 4 AND 5%, FROM THE EARLIER RANGE BETWEEN 4 AND 6%. IN COMPARISON, SINGAPORE’S ECONOMY GREW 7.5% LAST YRAR.

MR LEE IS NOT ONLY WORRIED ABOUT THE SITUATION IN THE US. ASIA, AND MORE IMPORTANTLY, ASEAN ARE VERY MUCH ON HIS RADAR SCREEN.

ECHOING THE SAME SENTIMENTS IN A SPEECH HE GAVE AT THE ASEAN MINISTERIAL MEETING LAST MONTH, HE SAID: “IN SOUTH-EAST ASIA, ASEAN HAS BECOME LESS PROMINENT ON THE RADAR SCREEN OF INVESTORS, WHO ARE MORE FOCUSED ON OPPORTUNITIES IN CHINA AND INDIA.

“SEVERAL ASEAN COUNTRIES ARE PRE-OCCUPIED WITH DOMESTIC, ECONOMIC AND POLITICAL PROBLEMS. HOWEVER, ALL ASEAN COUNTRIES KNOW THAT WE MUST WORK TOGETHER RESOLUTEY AS A GROUP.

“SINGAPORE WILL DO OUR PART. BUT WE MUST ALSO MAINTAIN OUR REPUTATION IN A TURBULENT REGION AS AN ECONOMY THAT IS COMPETITIVE, A SOCIETY THAT IS COHESIVE AND A GOVERNMENT THAT IS HONEST AND COMPETENT.

LOOKING A LITTLE AHEAD, MR LEE SAID:”THE DIFFICULTIES WILL PROBABLY DRAG ON WELL INTO NEXT YEAR BEFORE GETTING BETTER......WE MUST THEREFORE PREPARE OURSELVES FOR A BUMPY YEAR AHEAD.

INFLATION IS AN ISSUE, “WHICH I AM SURE IS AT THE TOP OF YOUR MINDS”. AND SOME GOVERNMENT DECISIONS SUCH AS GST AND ERP INCREASES DO RAISE THE COST OF LIVING. BUT THE PRIME MINISTER SAID, THEY ARE ESSENTIAL,”OTHERWISE WE WOULD NOT DO THEM: THE GST ALLOWS US TO FINANCE WORKFARE AND OTHER SCHEMES TO HELP LOWER INCOME SINGAPOREANS OVER THE LONG-TERM AND THE ERP KEEPS OUR ROADS FREE-FLOWING.

IN ONE WORD, PEOPLE, BOTH IN QUALITY AND QUANTITY. “TO UPGRADE OUR ECONOMY, WE MUST INVEST IN OUR PEOPLE, ESPECIALLY THROUGH EDUCATION,”HE SAID. POLYTECHNICS AND ITES ARE BEING IMPROVED. UNIVERSITY PLACES ARE BEING EXPANDED. THE FOURTH UNIVERSITY WILL BE UP AND READY IN CHANGI IN THREE YEARS.

AND FOR WHAT IS LIKELY TO BE THE HOT TOPIC IN THE MONTHS TO COME, MR LEE SAID:”…WE ALSO NEED ENOUGH BABIES TO REPLACE OURSELVES. “WE HAVE TO TAKE THIS SERIOUSLY. MARRIAGE AND PARENTHOOD ARE PERSONAL DECISIONS. BUT WE CAN CREATE AN ENVIROMENT WHERE SINGAPOREANS SEE THEM AS A NATURAL AND IMPORTANT PART OF LIFE, AND WHERE YOUNG PEOPLE GET SUPPORT IN STARTING FAMILIES.

THE PRIME MINISTER ENDED ON A SOMEWHAT UPBEAT MOOD: “DESPITE THE UNCERTAINTIES IN OUR REGION AND IN THE WORLD ECONOMY, SINGAPORE IS IN A STRONG POSITION. IN GOOD TIMES AND BAD, WE HAVE STAYED UNITED, LOOKED OVER THE HORIZON AND MOVED CAREFULLY, BUT RESOLUTELY, FORWARD.

OUTLOOK

THE COMPOSITE LEADING INDEX (CLI) FELL 2.6% IN 1Q 2008, FOLLOWING THE 0.8% GAIN IN 4Q 2007. OF THE NINE COMPONENTS WITHIN THE INDEX, FIVE COMPONENTS RECORDED DECLINES WHILE FOUR COMPONENTS IMPROVED. THE FIVE INDICATORS THAT REGISTERED DECLINES ARE THE STOCK PRICE, US PURCHASING MANAGER’S INDEX, WHOLESALE TRADE, STOCK OF FINISHED GOODS AND DOMESTIC LIQUIDITY.

IN THE LAST REVIEW IN FEBRUARY 2008, THE MINISTRY OF TRADE AND INDUSTRY LOWERED THE 2008 GDP GROWTH FORECAST FROM 4.5-6.5% TO 4.0-6.0%, TAKING INTO ACCOUNT THE DOWNSIDE RISKS OF A US DOWNTURN. SINCE THEN, THE SLOWDOWN IN THE MAJOR ECONOMIES HAS PANNED OUT LARGELY AS EXPECTED. THE IMF AND MARKET CONSENSUS HAVE LOWERED THEIR ECONOMIC FORECASTS ACROSS THE BOARD BUT ASIAN ECONOMIES SUCH AS CHINA AND INDIA ARE FORECASTED TO RECORD STRONG GROWTH FOR 2008. THERE IS ALSO A RESPITE IN US FINANCIAL MARKETS – THE MAIN SOURCE OF DOWNSIDE RISK TO THE FORECAST – WITH THE RESCUE OF BEAR STEARNS BY THE FEDERAL RESERVE IN MARCH. WHILST CREDIT CONDITIONS WILL REMAIN WEAK AND DRAG THE REAL ECONOMY, THERE IS GREATER CONFIDENCE THAT TIMELY AND RESOLUTE POLICY ACTIONS WILL BE TAKEN AS NEEDED TO FORESTALL A FINANCIAL MELTDOWN.

NONETHELESS, THERE REMAINS THE DOWNSIDE RISK OF A DEEPER THAN EXPECTED US RECESSION DUE TO FINANCIAL TURBULENCE OR SHARP DECLINES IN ASSET VALUES. THERE COULD BE FURTHER WRITE-DOWNS AND LOSSES IN BANKING INSTITUTIONS WHICH COULD SET OFF ANOTHER ROUND OF INCREASED RISK AVERSION. GLOBAL DEMAND COULD SLOW FURTHER AS THE FINANCIAL MARKETS’ TURBULENCE TRANSLATE INTO HIGHER COSTS OF FUNDS AND LOWER INCOMES.

IN THE FINANCIAL SERVICES INDUSTRY, MAJORITY OF THE BANKS AND FINANCE COMPANIES FORECAST BUSINESS OUTLOOK TO REMAIN STABLE IN THE COMING MONTHS. HOWEVER, STOCK, SHARE AND BOND BROKERS, FUND MANAGERS AND INSURANCE COMPANIES ARE LESS UPBEAT ABOUT THE BUSINESS OUTLOOK IN THE MONTHS AHEAD.

IN THE REAL ESTATE INDUSTRY, A NET WEIGHTED BALANCE OF 9% OF FIRMS,

EXPECT BUSINESS TO BE BRISK FOR THE COMING MONTHS.

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 9% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. IT APPLIES TO THOSE IN THE TROPICAL PRODUCE, WEARING APPAREL AND FOOTWEAR, AND INDUSTRIAL MACHINERY AND EQUIPMENT SECTORS.

A NET WEIGHTED BALANCE OF 29% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING SEPTEMBER 2008. SUPERMARKETS AND RETAILERS OF JEWELLERY AND WATCHES FORECAST SLOWER BUSINESS AFTER THE FESTIVE PERIOD. AS A RESULT OF THE REDUCED CERTIFICATE OF ENTITLEMENT (COE) QUOTA, MOTOR VEHICLES RETAILERS CONTINUE TO EXPRESS THEIR CONCERN.

IN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 9% OF FIRMS FORECASTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE COMING MONTHS.

IN THE SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 23% OF FIRMS,

EXPECT BUSINESS TO BE BRISK FOR THE COMING MONTHS WHILE A WEIGHTED 20% OF FIRMS PROJECTS LESS FAVOURABLE BUSINESS CONDITIONS. MAJORITY OF THE FIRMS (A WEIGHTED 57%) EXPECT BUSINESS ACTIVITIES TO REMAIN AT SIMILAR LEVELS FOR THE COMING MONTHS. THIS RESULTS IN A NET WEIGHTED BALANCE OF 3% OF FIRMS EXPECTING A POSITIVE OUTLOOK. THIS MAGNITUDE IS SMALLER THAN

THE NET WEIGHTED BALANCE OF 22% REGISTERED IN THE SAME PERIOD FOR 2007.

HOTELIERS REMAIN BULLISH ON BUSINESS CONDITIONS IN THE MONTHS AHEAD, WITH A NET WEIGHTED BALANCE OF 69% OF HOTELIERS EXPECTING THEIR BUSINESSES TO RISE IN ANTICIPATION OF THE POSITIVE SENTIMENTS IN THE TOURISM INDUSTRY AND UPCOMING MAJOR EVENTS IN SINGAPORE SUCH AS COMMUNICASIA 2008 AND THE FORMULA ONE GRAND PRIX. IN THE CATERING TRADE INDUSTRY, BUSINESS CONDITIONS ARE EXPECTED TO BE STABLE.

IN THE INFORMATION AND COMMUNICATIONS INDUSTRY, A NET WEIGHTED BALANCE OF 23% OF FIRMS PREDICTS BETTER BUSINESS, IN PARTICULAR THOSE ENGAGED IN MOTION PICTURE AND VIDEO, RADIO AND TELEVISION, SOUND RECORDING AND BROADCASTING ACTIVITIES.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 7% OF FIRMS EXPECTS POSITIVE SENTIMENTS. THESE INCLUDE THOSE ENGAGED IN PROVIDING ADVERTISING SERVICES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

TODAY

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.43.38
UK Pound	1	Rs.81.34
Euro	1	Rs.64.55

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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