MIRA INFORM REPORT

Report Date :

28.08.2008

IDENTIFICATION DETAILS

Name :	YORK INTERNATIONAL PTE LTD
Formerly Known As :	^GRAM SINGAPORE PTE LTD
Registered Office :	^10 Upper Aljunied Link, ^#08-00 York International. ^Industrial Building, ^367904
Country :	Singapore
Financials (as on) :	30.09.2006
Date of Incorporation :	^27.01.1988
Com. Reg. No.:	^198800276K
Legal Form :	^Pte Ltd
Line of Business :	^Repair of Domestic Electrical/Electronic Appliances Exp Audio and Video Equipment Sale & Servicing of Air-Cons & Refrigeration Equipment And Accessories ^Building Construction (Mixed Activities

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Exists

Subject Company

YORK INTERNATIONAL PTE LTD

Line Of Business 

^{REPAIR OF DOMESTIC ELECTRICAL/ELECTRONIC APPLIANCES EXP AUDIO}

^{AND VIDEO EQUIPMENT SALE & SERVICING OF AIR-CONS & REFRIGERATION}

^{EQUIPMENT AND ACCESSORIES BUILDING CONSTRUCTION (MIXED ACTIVITIES)}

Parent Company

^{YORK AIR CONDITIONING & REFRIGERATION INC}

(PERCENTAGE OF SHAREHOLDING: 54%)

Financial Elements

FY 2006

COMPANY

Sales : USD 59,289,559

Networth : USD 16,168,441

Paid-Up Capital : USD 1,544,979

Net result : USD 6,011,240

Net Margin(%) : 10.14

Return on Equity(%): 37.18

Leverage Ratio : 1.57

COMPANY IDENTIFICATION

^{Subject Company : YORK INTERNATIONAL PTE LTD}

^{Former Name : GRAM SINGAPORE PTE LTD}

^{Business Address : 10 UPPER ALJUNIED LINK}

^{#08-00 YORK INTERNATIONAL}

^{INDUSTRIAL BUILDING}

^{Town : SINGAPORE}

^{Postcode : 367904}

^{County : -}

^{Country : Singapore}

^{Telephone : 6284 5722}

^{Fax : 62833015/62869243}

^{ROC Number : 198800276K}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{GRAM SINGAPORE PTE LTD DATE OF CHANGE OF NAME: 01/07/1996 GRAM}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 27/01/1988}

^{Previous Legal Form : -}

^{Summary year : 30/09/2006}

^{Sales : 59,289,559}

^{Networth : 16,168,441}

^{Capital : -}

^{Paid-Up Capital : 1,544,979}

^{Employees : 500}

^{Net result : 6,011,240}

^{Share value : -}

^{Auditor : PRICEWATERHOUSECOOPERS}

REFERENCES

^{Litigation : YES}

^{Company status : TRADING}

^{Started : 27/01/1988}

PRINCIPAL(S)

^{SOREN BJERG S2734292B Director}

DIRECTOR(S)

^{SOREN BJERG S2734292B Director}

^{Appointed on : 25/11/1999}

^{Street : 96A CORONATION ROAD WEST}

^{Town : SINGAPORE}

^{Postcode : 269314}

^{Country : Singapore}

^{LOH LI PING S7625605E Company Secretary}

^{Appointed on : 01/08/2007}

^{Street : 348 TAMPINES STREET 33}

^#05-406

^{Town : SINGAPORE}

^{Postcode : 520348}

^{Country : Singapore}

^{JEROME DENNIS OKARMA 026503882 Director}

^{Appointed on : 30/05/2007}

^{Street : 1109 EAST LEXINGTON BOULEVARD}

^{WHITEFISH BAY}

^{Town : WISCONSIN}

^{Postcode : 53217}

^{Country : United States}

^{KEITH ERNEST WANDELL 027050470 Director}

^{Appointed on : 31/03/2008}

^{Street : 3747 W. ASHLEY LANE}

^{MEQUON, 53092}

^{Town : -}

^{Postcode : -}

^{Country : United States}

^{R BRUCE MCDONALD BD119822 Director}

^{Appointed on : 31/03/2008}

^{Street : 3553 N. SHEPARD AVENUE}

^{SHOREWOOD, WI 53211}

^{Town : MILWAUKEE}

^{Postcode : -}

^{Country : United States}

^{TOH YUE KANG F0343677L Director}

^{Appointed on : 01/10/2007}

^{Street : 4 CAIRNHILL RISE}

^#05-01

^{THE CAIRNHILL}

^{Town : SINGAPORE}

^{Postcode : 229740}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{HORSTED JORN CHRISTIAN 00726587}

^{ERIKSEN ERIK BERRE S00726631}

^{LEE AI TUAN S0145501Z}

^{LOH SHU CHUN S0159495H}

^{ONG KENG LAN RUTH S1087251J}

^{RASMUSSEN ALEX P5494497}

^{ERIC STEPHEN SMITH F0793543V}

^{CHARLES DAVID MYERS 026144026}

^{LEONG KAM SON A8874435}

^{LIM KENG SAN SHIRLEY S0004555A}

^{CHUAH CHENG HUAT S2721527J}

^{SUN WING MING WILSON BC247421}

^{LOW GEOK ENG SUSIE S0167313J}

^{STEPHEN ALAN ROELL 022021476}

ACTIVITY(IES)

^{REFRIGERATING EQUIPMENT - COMMERCIAL And INDUSTRIA Code: 18260}

^{AIR COND EQPT And SYSTEMS - REPAIRING And CLEANING Code: 440}

^{BASED ON ACRA'S RECORD}

^{1) REPAIR OF DOMESTIC ELECTRICAL/ELECTRONIC APPLIANCES EXP AUDIO AND}

^{VIDEO EQUIPMENT;}

^{2) BUILDING CONSTRUCTION;}

^{BUILDING CONSTRUCTION (MIXED ACTIVITIES)}

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}

SHAREHOLDERS(S)

^{YORK INTERNATIONAL CORPORATION 1,000,000 Company}

^{Street : CORPORATION TRUST CENTRE}

^{1209 ORANGE STREET WILMINGTON}

^{Town : -}

^{Postcode : DE 19801}

^{Country : United States}

^{YORK AIR CONDITIONING & 1,161,118 Company}

^{Street : 100 WEST TENTH STREET}

^{WILMINGTON DELAWARE}

^{Town : USA}

^{Postcode : -}

^{Country : United States}

FORMER SHAREHOLDER(S)

^{BROADRENE GRAM AS 25,000}

HOLDING COMPANY

^{YORK AIR CONDITIONING & UF19823Z %: 54.00}

SUBSIDIARY(IES)

^{YORK PHILIPPINES INC.}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIANT}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation : AVERAGE}

LITIGATION(S)

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS29410/2006}

Defendant YORK INTERNATIONAL PTE LTD ROC #: 198800276K

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS29411/2006}

Defendant YORK INTERNATIONAL PTE LTD ROC #: 198800276K

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS20254/2005}

Defendant YORK INTERNATIONAL PTE LTD ROC #: 198800276K

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS16611/2006}

Defendant YORK INTERNATIONAL PTE LTD ROC #: 198800276K

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS033655/2001}

Defendant YORK INTERNATIONAL PTE LTD ROC #: 198800276K

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS019001/2001}

Defendant YORK INTERNATIONAL PTE LTD ROC #: 198800276K

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 11/12/2007}

^{Balance Sheet Date: 30/09/2006 31/12/2005}

^{Number of weeks: 40 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 131,189 12,528}

^{Tangible Fixed Assets: 281,525 945,363}

^{Investments 200,000 200,000}

^{Total Fixed Assets: 612,714 1,157,891}

^{Inventories: 1,900,414 2,602,061}

^{Receivables: 16,227,376 14,959,533}

^{Cash,Banks, Securitis: 9,876,658 9,998,628}

^{Other current assets: 12,990,846 2,595,965}

^{Total Current Assets: 40,995,294 30,156,187}

^{TOTAL ASSETS: 41,608,008 31,314,078}

^{--- LIABILITIES}

^{Equity capital: 1,544,979 1,544,979}

^{Profit & lost Account: 14,623,462 8,612,222}

^{Total Equity: 16,168,441 10,157,201}

^{Trade Creditors: 12,081,719 12,792,865}

^{Prepay. & Def. charges: 6,357,005 4,632,788}

^{Advanced payments: 3,011,560 899,435}

^{Due to Bank:}

^{Provisions: 2,428,908 1,489,505}

^{Other Short term Liab.: 1,560,375 1,342,284}

^{Total short term Liab.: 25,439,567 21,156,877}

^{TOTAL LIABILITIES: 25,439,567 21,156,877}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 59,289,559 72,900,736}

^{Purchases,Sces & Other Goods: 38,576,817 47,911,047}

^{Gross Profit: 20,712,742 24,989,689}

^{NET RESULT BEFORE TAX: 7,461,270 3,575,203}

^{Tax : 1,450,030 707,912}

^{Net income/loss year: 6,011,240 2,867,291}

^{Interest Paid: 14,180 444}

^{Depreciation: 210,134 211,045}

^{Dividends: - -}

^{Directors Emoluments: 394,052 2,229,100}

^{Wages and Salaries: 7,149,604 12,931,049}

^{Financial Income: 289,764 256,869}

RATIOS

^{30/09/2006 31/12/2005}

^{Turnover per employee: 118,579.12 145,801.47}

^{Net result / Turnover(%): 0.10 0.04}

^{Stock / Turnover(%): 0.03 0.04}

^{Net Margin(%): 10.14 3.93}

^{Return on Equity(%): 37.18 28.23}

^{Return on Assets(%): 14.45 9.16}

^{Dividends Coverage: - -}

^{Net Working capital: 15,555,727.00 8,999,310.00}

^{Cash Ratio: 0.39 0.47}

^{Quick Ratio: 1.03 1.18}

^{Current ratio: 1.61 1.43}

^{Receivables Turnover: 98.53 73.87}

^{Leverage Ratio: 1.57 2.08}

^{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}

^{Dividends Coverage : Net income loss year/Dividends}

^{Net Working capital : Total current assets - Total short term liabilities}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{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 59.18% FROM US$10,157,201 IN FY 2005 TO US$16,168,441 IN FY 2006. THIS WAS DUE TO HIGHER RETAINED EARNINGS OF US$14,623,462 (2005: US $8,612,222); A RISE OF 69.80% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 47.49% (2005: 60.47%) OF THE TOTAL CURRENT LIABILITIESAND AMOUNTED TO US$12,081,719 (2005: US$12,792,865).}

^{THE BREAKDOWN IS AS FOLLOWS:}

^{* TRADE PAYABLES TO INTERMEDIATE HOLDING CORPORATION - 2006: US}

^{$592,158 (2005: US$474,161)}

^{* TRADE PAYABLES TO RELATED CORPORATIONS - 2006: US$7,382,265 (2005:}

^{US$8,940,989)}

^{* TRADE PAYABLES TO RELATED PARTIES - 2006: US$1,463,173 (2005: US}

^$1,734,331)

^{* TRADE PAYABLES TO THIRD PARTIES - 2006: US$2,644,123 (2005: US}

^$1,643,384)

^{PROVISIONS OF US$2,428,908 (2005: US$1,489,505) COMPRISED THE}

^FOLLOWING:

^{* CURRENT INCOME TAX LIABILITIES - 2006: US$1,701,229 (2005: US}

^$686,277)

^{* PROVISION FOR WARRANTY CLAIMS - 2006: US$727,679 (2005: US$803,228)}

^{IN ALL, LEVERAGE RATIO FELL FROM 2.08 TIMES TO 1.57 TIMES AS A RESULT}

^{OF A GREATER RISE IN TOTAL EQUITY TO TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 1.61 TIMES, UP FROM 1.43 TIMES AND QUICK RATIO FELL TO 1.03 TIMES FROM 1.18 TIMES IN FY 2005.}

^{NET WORKING CAPITAL IMPROVED BY 72.85% FROM US$8,999,310 IN FY 2005 TO US$15,555,727.}

^{PROFITABILITY:}

^{REVENUE POSTED A DECREASE OF 18.67% FROM US$72,900,736 IN FY 2005 TO US$59,289,559 BUT NET PROFIT ROSE BY 1.10 TIMES TO US$6,011,240 (2005: US$2,867,291). THIS COULD BE DUE TO LOWER EXPENSES BY 24.54% WHICH AMOUNTED TO US$52,504,337 (2005: US$69,583,170). HENCE, NET MARGIN ROSE TO 10.14% (2005: 3.93%).}

^REVENUE:

^{* SALE OF EQUIPMENT AND SPARE PARTS - 2006: US$37,184,159}

^{(2005: US$53,052,991)}

^{* SERVICE INCOME - 2006: US$14,199,587 (2005: US$16,376,209)}

^{* PROGRESS BILLINGS FOR SERVICE CONTRACTS - 2006: US$7,905,813}

^{(2005: US$3,471,536)}

^{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$14,180 IN FY 2006 (2005: US$444).}

^{AVERAGE COLLECTION PERIOD HAS INCREASED FROM 73.87 DAYS TO 98.53 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.}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEM IS CLASSIFIED UNDER PRELIMINARY:}

^{* DEFERRED INCOME TAX ASSET - 2006: US$131,189 (2005: US$12,528)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{GENERAL INFORMATION}

^{ON 30 JUNE 2006, THE COMPANY CHANGED ITS FINANCIAL YEAR END FROM 31}

^{DECEMBER TO 30 SEPTEMBER TO BE CO-TERMINOUS WITH ITS ULTIMATE HOLDING}

^CORPORATION.

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 27/01/1988 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE}

^{OF "GRAM EQUIPMENT (S.E.A.) PTE LTD".}

^{SUBJECT CHANGED ITS NAMESTYLE TO "GRAM SINGAPORE PTE LTD".}

^{SUBSEQUENTLY ON 01/07/1996, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE}

^{OF "YORK INTERNATIONAL PTE LTD".}

^{AS AT 25/08/2008, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF}

^{2,161,118 SHARES, OF A VALUE OF S$2,161,118.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{(1) REPAIR OF DOMESTIC ELECTRICAL/ELECTRONIC APPLIANCES EXP AUDIO AND}

^{VIDEO EQUIPMENT}

^{SALE & SERVICING OF AIR-CONS & REFRIGERATION EQUIPMENT AND}

^ACCESSORIES

^{(2) BUILDING CONSTRUCTION}

^{BUILDING CONSTRUCTION (MIXED ACTIVITIES)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THE SALE AND SERVICING OF AIR-CONDITIONERS AND REFRIGERATION EQUIPMENT AND ACCESSORIES. FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^{ABOUT YORK INTERNATIONAL GROUP:}

^{YORK INTERNATIONAL IS A MAJOR GLOBAL SUPPLIER OF COMPRESSORS, SPARE PARTS, CONTROL SYSTEMS AND EQUIPMENT FOR MARINE REFRIGERATION APPLICATIONS.}

^{THEY MAINTAIN A GLOBAL NETWORK PROVIDING ITS CUSTOMERS WITH COMPREHENSIVE TECHNICAL SUPPORT 24 HOURS, 7 DAYS A WEEK. THEY PROVIDE EXPERT KNOWLEDGE OF COMPRESSORS UNITS FROM YORK, STAL, SABROE, FRICK, BITZER, BOCK AND GRAM WITH UNISAB CONTROLS, AS WELL AS TECHNICAL SUPPORT THROUGHOUT THE WORKING LIFE OF THOSE COMPRESSORS UNITS AND PARTS.}

^{THEY HAVE THE EXPERTISE OF KNOWLEDGEABLE AND EXPERIENCED SPECIALISTS TO PROVIDE A COMPREHENSIVE RANGE OF AFTER MARKET THAT CONSIST OF SPARE PARTS OF OUR ORIGINAL MAKE FROM WORLD RENOWNED SABROE, STAL, GRAM, FRICK, YORK AND JOHNSON CONTROLS BRAND NAMES AS WELL AS ADVANCED REFRIGERATION EQUIPMENT TO MEET THE DEMAND OF CUSTOMERS}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* AIR CONDITIONING DEPARTMENT}

^{* SALES, INSTALLATION AND SERVICING OF YORK RESIDENTIAL,}

^{COMMERCIAL AND INDUSTRIAL AIR CONDITIONING SYSTEM}

^{PRODUCTS DEALINGS:}

^{* SPACE HEATING, AIR CONDITIONING, VENTILATION AND HUMIDIFYING}

^PLANT

^{- AIR CONDITIONERS}

^{* REFRIGERATION PLANT AND EQUIPMENT, INDUSTRIAL, FREEZE DRYING}

^PLANT

^{* HEATING, REFRIGERATING AND AIR CONDITIONING EQUIPMENT}

^BRANDS:

^{* FRICK}

^{* GRAM}

^{* JOHNSON CONTROLS}

^{* SABROE}

^{* STAL}

^{* YORK}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:}

^{* DANISH BUSINESS ASSOCIATION}

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^{* ASSOCIATION OF SINGAPORE MARITIME INDUSTRIES}

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

^{SUBJECT ENGAGES IN BOTH LOCAL AND OVERSEAS SALES, SPECIALISING IN THE}

^{SERVICING AND SALES OF SPARE PARTS. THEIR PRODUCTS ARE SOURCE DIRECTLY}

^{FROM ITS PARENT COMPANY.}

^{SUBJECT PERSONBEL HAS ALSO CONFIRMED THAT THE COMPANY DOES NOT HAVE}

^{ITS OWN WEBSITE.}

^{NUMBER OF EMPLOYEES:}

^{* 500+}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE}

^{THE COMPANY'S IMMEDIATE HOLDING COMPANY IS JOHNSON CONTROLS}

^{AIRCONDITIONING AND REFRIGERATION INC. THE ULTIMATE HOLDING}

^{CORPORATION IS JOHNSON CONTROLS INC. THEY ARE BOTH INCORPORATED IN THE}

^{UNITED STATES OF AMERICA.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* GROUP - 2005: NOT AVAILABLE (2004: NOT AVAILABLE; 2003: 239;}

^{2002: 228; 2001: 219; 2000: 214)}

^{* COMPANY - 2005: NOT AVAILABLE (2004: 181 (2003: 193; 2002: 185;}

^{2001: 172; 2000: 170)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{10 UPPER ALJUNIED LINK}

^#08-00

^{YORK INTERNATIONAL INDUSTRIAL BUILDING}

^{SINGAPORE 367904}

^{DATE OF CHANGE OF ADDRESS: 18/11/1996}

^{WEBSITE: -}

^{EMAIL: aircon.dept@sg.york.com}

MANAGEMENT

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

^{1) JEROME DENNIS OKARMA, AN AMERICAN}

^{- BASED IN UNITED STATES OF AMERICA}

^{2) KEITH ERNEST WANDELL, AN AMERICAN}

^{- BASED IN UNITED STATES OF AMERICA}

^{3) R BRUCE MCDONALD, A CANADIAN}

^{- BASED IN UNITED STATES OF AMERICA}

^{4) TOH YUE KANG, A MALAYSIAN}

^{- BASED IN SINGAPORE}

^{5) SOREN BJERG, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE:}

^{JOHNSON CONTROLS (S) PTE. LTD.}

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.43.73
UK Pound	1	Rs.80.31
Euro	1	Rs.64.61

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