MIRA INFORM REPORT

Report Date :

13.12.2008

IDENTIFICATION DETAILS

Name :	INEOS SINGAPORE PTE. LTD.
Formerly Known as :	^INNOVENE SINGAPORE PTE LTD
Registered Office :	^435 Orchard Road ^#19-04 ^Wisma Atria
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^20.01.2005
Com. Reg. No.:	^200501012G
Legal Form :	^Pte Ltd
Line of Business :	Trading Company Dealing With Chemicals and Plastics such as Polyethylene and Polypropylene

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 :	Clear

Subject Company

INEOS SINGAPORE PTE. LTD.

Line Of Business 

TRADING COMPANY DEALING WITH CHEMICALS AND PLASTICS SUCH AS POLYETHYLENE & POLYPROPYLENE

Parent Company

INEOS HOLDINGS LIMITED

(PERCENTAGE OF SHAREHOLDINGS: 100%)

Financial Elements

FY 2006

COMPANY

Sales : US$214,756,224

Networth : US$ 13,308,577

Paid-Up Capital : US$ 60,632

Net result : US$ 6,697,014

Net Margin(%) : 3.12

Return on Equity(%) : 50.32

Leverage Ratio : 2.92

COMPANY IDENTIFICATION

^{Subject Company : INEOS SINGAPORE PTE. LTD.}

^{Former Name : INNOVENE SINGAPORE PTE LTD}

^{Business Address : 435 ORCHARD ROAD}

^#19-04

^{WISMA ATRIA}

^{Town : SINGAPORE}

^{Postcode : 238877}

^{Country : Singapore}

^{Telephone : 6513 2348 / 6513 2354}

^{Fax : 6734 8851 / 6734 6827}

^{ROC Number : 200501012G}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{INNOVENE SINGAPORE PTE LTD DATE OF CHANGE OF NAME: 16/06/2006}

O & D SINGAPORE TRADING PTE LTD DATE OF CHANGE OF NAME: 16/05/2005

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 20/01/2005}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 214,756,224}

^{Networth : 13,308,577}

^{Capital : -}

^{Paid-Up Capital : 60,632}

^{Employees : 10}

^{Net result : 6,697,014}

^{Share value : 1}

^{Auditor : ERNST & YOUNG}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 100,000 SGD 100,000.00}

^{PAID-UP ORDINARY - SGD 100,000.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 20/01/2005}

PRINCIPAL(S)

^{LAU KEE SENG S2558626C Director}

DIRECTOR(S)

^{ANTHONY ANNE CATHERINE S1347717E Company Secretary}

^{Appointed on : 16/12/2005}

^{Street : 8 LORONG 29 GEYLANG}

^#07-06

^{Town : SINGAPORE}

^{Postcode : 388064}

^{Country : Singapore}

^{TANG AI AI (MRS WONG AI AI) S1599153D Company Secretary}

^{Appointed on : 16/12/2005}

^{Street : 33 BIN TONG PARK}

^{BIN TONG PARK}

^{Town : SINGAPORE}

^{Postcode : 269814}

^{Country : Singapore}

^{LAU KEE SENG S2558626C Director}

^{Appointed on : 24/10/2007}

^{Street : 1F PINE GROVE}

^#06-29

^{PINE GROVE}

^{Town : SINGAPORE}

^{Postcode : 595001}

^{Country : Singapore}

^{LEONARDUS HENDRIK HEEMSKERK NJ5366024 Director}

^{Appointed on : 24/10/2007}

^{Street : HOLLIN, WHINWHISTLE ROAD}

^{EAST WELLOW}

^{Town : HAMPSHIRE SO51 6BN}

^{Postcode : -}

^{Country : United Kingdom}

FORMER DIRECTOR(S)

^{PAUL CHRISTOPHER OVERMENT 302135458}

^{BARRY SLATER 761058068}

^{CHAN KHAI LEONG S1297332B}

ACTIVITY(IES)

^{CHEMICALS Code: 3970}

^{TRADING COMPANIES Code: 22190}

^{BASED ON ACRA'S RECORD}

^{1) WHOLESALE OF PETROCHEMICAL PRODUCTS;}

^{TRADING, SALES AND SUPPORTING SERVICES}

^{2) WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS;}

^{TRADING, SALES AND SUPPORTING SERVICES}

CHARGES

^{Date : 21/07/2006}

^{Comments : CHARGE NO: C200604784}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): BARCLAYS BANK PLC}

^{Date : 10/04/2006}

^{Comments : CHARGE NO: C200602315}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): BARCLAYS BANK PLC}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{BARCLAYS BANK P L C}

SHAREHOLDERS(S)

^{INEOS HOLDINGS LIMITED 100,000 Company}

^{Street : HAWKLEASE, CHAPEL LANE}

^{LYNDHURST, S043 7FG}

^{Town : HAMSPHIRE}

^{Postcode : -}

^{Country : United Kingdom}

HOLDING COMPANY

^{INEOS HOLDINGS LIMITED UF41910M %: 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

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

^{Date Account Lodged: 21/11/2007}

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

^{Number of weeks: 52 50}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp - 51,103}

^{Total Fixed Assets: - 51,103}

^{Inventories: 19,672,599 3,133,173}

^{Receivables: 31,722,103 45,196,347}

^{Cash,Banks, Securitis: 659,521 1,184,767}

^{Other current assets: 49,200 4,074,111}

^{Total Current Assets: 52,103,423 53,588,398}

^{TOTAL ASSETS: 52,103,423 53,639,501}

^{--- LIABILITIES ---}

^{Equity capital: 60,632 60,632}

^{Profit & lost Account: 13,247,945 6,550,931}

^{Total Equity: 13,308,577 6,611,563}

^{Trade Creditors: 35,330,373 43,228,662}

^{Provisions: 2,240,183 1,742,000}

^{Other Short term Liab.: 128,327 739,101}

^{Prepay. & Def. charges: 1,095,963 1,318,175}

^{Total short term Liab.: 38,794,846 47,027,938}

^{TOTAL LIABILITIES: 38,794,846 47,027,938}

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

^{Net Sales 214,756,224 285,725,691}

^{Purchases,Sces & Other Goods: 199,988,308 271,462,203}

^{Gross Profit: 14,767,916 14,263,488}

^{Result of ordinary operations 9,179,557 8,861,705}

^{NET RESULT BEFORE TAX: 8,660,936 8,292,931}

^{Tax : 1,963,922 1,742,000}

^{Net income/loss year: 6,697,014 6,550,931}

^{Interest Paid: 154,305 226,716}

^{Directors Emoluments: 232,435 117,831}

^{Wages and Salaries: 852,635 670,468}

^{Financial Income: 332,377 -}

RATIOS

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

^{Turnover per employee: 21475622.40 28572569.10}

^{Net result / Turnover(%): 0.03 0.02}

^{Stock / Turnover(%): 0.09 0.01}

^{Net Margin(%): 3.12 2.29}

^{Return on Equity(%): 50.32 99.08}

^{Return on Assets(%): 12.85 12.21}

^{Net Working capital: 13308577.00 6560460.00}

^{Cash Ratio: 0.02 0.03}

^{Quick Ratio: 0.83 0.99}

^{Current ratio: 1.34 1.14}

^{Receivables Turnover: 53.18 56.95}

^{Leverage Ratio: 2.92 7.11}

^{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 STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2005 COVERS THE PERIOD FROM 20 JANUARY 2005 (DATE OF INCORPORATION) TO 31 DECEMBER 2005, A TOTAL OF 50 WEEKS. THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 COVERS THE PERIOD FROM 1 JANUARY 2006 TO 31 DECEMBER 2006, A TOTAL OF 52 WEEKS. THUS, THE ANALYSIS MAY NOT GIVE A TRUE AND FAIR VIEW.}

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

^{THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH NET WORTH IMPROVED BY 1.01 TIMES FROM US$6,611,563 IN FY 2005 TO US$13,308,577 IN FY 2006. THIS WAS DUE TO HIGHER REVENUE RESERVE OF US$13,247,945 (2005: US $6,550,931); A RISE OF 1.02 TIMES FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 91.07% (2005: 91.92%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$35,330,373 (2005: US$43,228,662).}

^{IN ALL, LEVERAGE RATIO DROPPED FROM 7.11 TIMES TO 2.92 TIMES AS A RESULT OF A DROP IN TOTAL LIABILITIES AND A RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 1.03 TIMES TO S$6,560,460 (2005: S$13,308,577).}

^{CURRENT RATIO ROSE TO 1.34 TIMES (2005: 1.14 TIMES) WHICH QUICK RATIO DROPPED TO 0.83 TIMES (2005: 0.99 TIMES).}

^{PROFITABILITY:}

^{REVENUE DROPPED BY 24.84% FROM US$285,725,691 IN FY 2005 TO US$214,756,224. HOWEVER, NET PROFIT IMPROVED BY 2.23% TO US$6,697,014 (2005: US$6,550,931). THE IMPROVEMENT OF NET PROFIT WAS MAINLY DUE TO THE DROP IN SELLING EXPENSES, OTHER EXPENSES, SHARE OF LOSS AND THE EXCHANGE GAIN. HENCE, NET MARGIN ROSE TO 3.12% (2005: 2.29%).}

^{REVENUE COMPRISED OF:}

^{*SALES OF GOODS - EXTERNAL PARTIES - 2006: US$213,893,687 (2005: US}

^{$282,621,787)}

^{*SALES OF GOODS - RELATED COMPANIES - 2006: US$862,537 (2005: US}

^$3,103,904)

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS}

^{CAN BE MAINTAINED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING.}

^{THE AVERAGE COLLECTION PERIOD HAS SHORTENED TO 53 DAYS (2005: 57}

^DAYS).

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 20/01/2005 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "O & D SINGAPORE TRADING PTE. LTD.".}

^{SUBJECT CHANGED TO THE NAMESTYLE OF "INNOVENE SINGAPOR PTE. LTD.".}

^{SUBSEQUENTLY ON 16/06/2006, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "INEOS SINGAPORE PTE. LTD.".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 100,000 SHARES, OF A VALUE OF S$100,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF PETROCHEMICAL PRODUCTS;}

^{TRADING, SALES AND SUPPORTING SERVICES}

^{2) WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS;}

^{TRADING, SALES AND SUPPORTING SERVICES}

^{THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: PETROCHEMICALS.}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITY IS THE TRADING OF PETROCHEMICALS PRODUCTS AND PROVISION OF}

^{SUPPORT SERVICES.}

^{THE COMPANY OPERATES IN SINGAPORE AND JAPAN.}

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

^PRODUCTS:

^{* DURASYN® POLYALPHAOLEFINS}

^{* INDOPOL POLYBUTENES}

^{* ETC}

^{IMPORT COUNTRIES:}

^{* EUROPE}

^{* NORTH AMERICA}

^{TERMS OF PAYMENT:}

^{* TRADE RECEIVABLES: 30 TO 60 DAYS}

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

^ACTIVITIES:

^{* A TRADING COMPANY DEALING WITH CHEMICALS AND PLASTICS SUCH AS}

^{POLYETHYLENE & POLYPROPYLENE}

^{NUMBER OF EMPLOYEES:}

^{* ABOUT 10}

^{THE IMPORTS AND EXPORTS WERE REJECTED.}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE}

^{THE COMPANY IS WHOLLY-OWNED BY INEOS HOLDINGS LIMITED, INCORPORATED IN}

^{UNITED KINGDOM.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{435 ORCHARD ROAD}

^#19-04

^{WISMA ATRIA}

^{SINGAPORE 238877}

^{DATE OF CHANGE OF ADDRESS: 16/05/2005}

^{- OFFICE}

^{- RENTED PREMISE}

^{- PREMISE OWNED BY: HSBC INSTITUTIONAL TRUST SERVICES (SINGAPORE)}

^LIMITED

^{WEBSITE: www.innovene.com}

^{EMAIL : Chung.Kiat.yeo@innovene.com}

MANAGEMENT

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

^{1) LEONARDUS HENDRIK HEEMSKERK, A DUTCH}

^{- BASED IN THE UNITED KINGDOM.}

^{2) LAU KEE SENG, A SINGAPORE PERMANENT RESIDENT}

^{- 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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.71
UK Pound	1	Rs.72.85
Euro	1	Rs.64.70

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