MIRA INFORM REPORT

Report Date :

05.02.2008

IDENTIFICATION DETAILS

Name :	DSM NUTRITIONAL PRODUCTS ASIA PACIFIC PTE. LTD.
Formerly Known As :	^ROCHE VITAMINS ASIA PACIFIC PTE LTD
Registered Office :	^78 Shenton Way ^#21-01 ^Lippo Centre
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^03/04/1997
Com. Reg. No.:	^199702207G
Legal Form :	Private Limited Company
Line of Business :	Blending And Trading In Vitamins And Fine Chemicals Products

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 :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

DSM NUTRITIONAL PRODUCTS ASIA PACIFIC PTE. LTD.

Line Of Business

BLENDING AND TRADING IN VITAMINS AND FINE CHEMICALS PRODUCTS

Parent Company

KONINKLIJKE DSM NV

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

COMPANY

Sales : US$213,774,000

Networth : US$37,618,000

Paid-Up Capital : US$1,402,000

Net result : US$3,657,000

Net Margin(%) : 1.71

Return on Equity(%) : 9.72

Leverage Ratio : 1.30

COMPANY IDENTIFICATION

^{Subject Company : DSM NUTRITIONAL PRODUCTS ASIA PACIFIC PTE. LTD.}

^{Former Name : ROCHE VITAMINS ASIA PACIFIC PTE LTD}

^{Business Address : 78 SHENTON WAY}

^#21-01

^{LIPPO CENTRE}

^{Town: SINGAPORE}

^{Postcode: 079120}

^{County: -}

^{Country: Singapore}

^{Telephone: 6325 6200}

^{Fax: 6220 5178}

^{ROC Number: 199702207G}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{ROCHE VITAMINS ASIA PACIFIC PTE LTD}

^{DATE OF CHANGE: 02/01/2004}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 03/04/1997}

^{Previous Legal Form: -}

^{Summary year : 31/12/2006}

^{Sales: 213,774,000}

^{Networth : 37,618,000}

^{Capital: -}

^{Paid-Up Capital: 1,402,000}

^{Employees: 70}

^{Net result : 3,657,000}

^{Share value: -}

^{AUDITOR: ERNST & YOUNG}

^{BASED ON ACRA'S AS AT 11/12/2007}

^{NO. OF SHARES 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 : 03/04/1997}

PRINCIPAL(S)

^{ROLAND KARL SCHLAGENHAUF F1421855 Managing Director}

DIRECTOR(S)

^{JULIET ANG S0290747Z Company Secretary}

^{Appointed on : 28/04/1997}

^{Street : 361 BUKIT TIMAH ROAD}

^#02-02

^{Town: SINGAPORE}

^{Postcode: 259725}

^{Country: Singapore}

^{ROLAND KARL SCHLAGENHAUF F1421855 Managing Director}

^{Appointed on : 01/07/1997}

^{Street : 4 GROVE LANE}

^{HENRY PARK}

^{Town: SINGAPORE}

^{Postcode: 279010}

^{Country: Singapore}

^{ROLAND KARL SCHLAGENHAUF F1421855 Director}

^{Appointed on : 03/04/1997}

^{Street : 4 GROVE LANE}

^{HENRY PARK}

^{Town: SINGAPORE}

^{Postcode: 279010}

^{Country: Singapore}

^{GERARDUS FRANCISCUS MARIA MOOREN N13713077 Director}

^{Appointed on : 15/10/2005}

^{Street : TOON HERMANSSINGEL 11}

^{6132 BT SITTARD}

^Town:

^Postcode:

^{Country: Netherlands}

FORMER DIRECTOR(S)

^{KOH CHOON HUI S0310105C}

^{OSCAR MENDOZA 0326728}

^{PETER BIERI 6131697}

^{MARKUS ALTWEGG 6115294}

^{NICOLAAS SIMON DE BOER N85466171}

^{FRANCISCUS JOHANNES ANTONIUS NC8020085}

ACTIVITY(IES)

^{PHARMACEUTICAL PRODUCTS - WHSLE And MFRS Code:16400}

^{FOOD PRODUCTS Code:9460}

^{BASED ON ACRA'S RECORD}

^{1) MANUFACTURING OF PHARMACEUTICAL AND BIOLOGICAL INTERMEDIATES AND}

^{FINE CHEMICALS FOR HUMAN USE; MANUFACTURE MEDICINAL &}

CHARGES

No Charges On Premise/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

^{Date: 10/08/2007}

^{Tax rate: 10}

^{Site Address : 12 SENOKO SOUTH ROAD}

^{Town: SINGAPORE}

^{Postcode: 758093}

^{Country: Singapore}

^{Annual Value: 334,000 (SGD)}

*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

^{CITIBANK N.A.}

SHAREHOLDERS(S)

^{KONINKLIJKE DSM NV 2,000,000 Company}

^{Street : HET OVERLOON 1}

^{6411 TE HEERLEN}

^Town:

^Postcode:

^{Country: Netherlands}

FORMER SHAREHOLDER(S)

^{ROCHE PHARMHOLDING B.V. 2,000,000}

HOLDING COMPANY

^{KONINKLIJKE DSM NV UF34888E % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity : SUFFICIANT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation:AVERAGE}

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 31/08/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005 31/12/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 114,000 217,000 191,000}

^{Tangible Fixed Assets: 2,243,000 2,501,000 2,442,000}

^{Total Fixed Assets: 2,357,000 2,718,000 2,633,000}

^{Inventories: 30,680,000 28,360,000 29,100,000}

^{Receivables: 38,983,000 35,019,000 35,709,000}

^{Cash,Banks, Securitis: 624,000 1,107,000 4,649,000}

^{Other current assets: 13,966,000 1,737,000 8,618,000}

^{Total Current Assets: 84,253,000 66,223,000 78,076,000}

^{TOTAL ASSETS: 86,610,000 68,941,000 80,709,000}

^{--- LIABILITIES}

^{Equity capital: 1,402,000 1,402,000 1,402,000}

^{Profit & loss Account: 36,216,000 32,559,000 31,372,000}

^{Total Equity: 37,618,000 33,961,000 32,774,000}

^{L/T deffered taxes: 62,000 31,000 -}

^{Total L/T Liabilities: 62,000 31,000 -}

^{Trade Creditors: 40,017,000 23,179,000 36,818,000}

^{Prepay. & Def. charges: 4,490,000 3,171,000 3,044,000}

^{Provisions: 1,243,000 495,000 387,000}

^{Other Short term Liab.: 3,180,000 8,104,000 7,686,000}

^{Total short term Liab.: 48,930,000 34,949,000 47,935,000}

^{TOTAL LIABILITIES: 48,992,000 34,980,000 47,935,000}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 213,774,000 210,959,000 213,744,000}

^{Gross Profit: 22,710,000 18,717,000 11,790,000}

^{Result of ordinary operations - - 2,064,000}

^{NET RESULT BEFORE TAX: 4,535,000 1,071,000 2,055,000}

^{Tax : 878,000 289,000 441,000}

^{Net income/loss year: 3,657,000 782,000 1,614,000}

^{Interest Paid: 338,000 431,000 36,000}

^{Depreciation: 370,000 394,000 413,000}

^{Directors Emoluments: 467,000 339,000 -}

^{Purchases,Sces &}

^{Other Goods: 191,064,000 192,242,000 201,954,000}

^{Wages and Salaries: 6,839,000 4,850,000 4,576,000}

^{Financial Income: 27,000}

RATIOS

^{31/12/2006 31/12/2005 31/12/2004}

^{Turnover per employee: 3053914.29 3013700.00 3053485.71}

^{Net result / Turnover(%): 0.02 0.00 0.01}

^{Stock / Turnover(%): 0.14 0.13 0.14}

^{Net Margin(%): 1.71 0.37 0.76}

^{Return on Equity(%): 9.72 2.30 4.92}

^{Return on Assets(%): 4.22 1.13 2.00}

^{Net Working capital: 35323000.00 31274000.00 30141000.00}

^{Cash Ratio: 0.01 0.03 0.10}

^{Quick Ratio: 0.81 1.03 0.84}

^{Current ratio: 1.72 1.89 1.63}

^{Receivables Turnover: 65.65 59.76 60.14}

^{Leverage Ratio: 1.30 1.03 1.46}

^{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}

^{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 10.77% FROM US$33,961,000 IN FY 2005 TO US$37,618,000 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$36,216,000 (2005: US$32,559,000); A RISE OF 11.23% FROM THE PRIOR FINANCIAL YEAR.

LEVERAGE:

IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 81.78% (2005: 67.28%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$40,017,000 (2005: US$23,179,000). THE BREAKDOWN IS

AS FOLLOWS:

-TRADE CREDITORS - 2006: US$586,000 (2005: US$324,000)

-RELATED COMPANIES - 2006: US$39,431,000 (2005: US$22,855,000)

IN ALL, LEVERAGE RATIO ROSE FROM 1.03 TIMES TO 1.30 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN IN TOTAL EQUITY.

LIQUIDITY:

IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM

THE CHANGES IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.72 TIMES, DOWN FROM 1.89 TIMES AND QUICK RATIO FELL TO 0.81 TIMES FROM 1.03 TIMES IN FY 2005.

NET WORKING CAPITAL IMPROVED BY 12.95% FROM US$31,274,000 IN FY 2005 TO US$35,323,000.

PROFITABILITY:

REVENUE POSTED A RISE OF 1.33% FROM US$210,959,000 IN FY 2005 TO US$213,774,000 AND NET PROFIT ROSE BY 3.68 TIMES TO US$3,657,000 (2005: US$782,000). HENCE, NET MARGIN ROSE TO 1.71% (2005: 0.37%).

DEBT SERVICING:

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

NON-CURRENT ASSETS:

THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:

-LOANS TO EMPLOYEES - 2006: US$114,000 (2005: US$217,000)

NOTES TO THE FINANCIAL STATEMENTS:

SUBSEQUENT EVENTS

ON 15/02/2007, THE SINGAPORE GOVERNMENT ANNOUNCED A REVISION IN THE SINGAPORE CORPORATE TAX RATE FROM 20% TO 18% FOR THE YEAR OF ASSESSMENT 2008. IN ACCORDANCE WITH FRS 12 INCOME TAXES AND FRS 10 EVENTS AFTER THE BALANCE SHEET, THIS IS A NON-ADJUSTING SUBSEQUENT EVENT. THE PROVISIONS FOR CURRENT AND DEFERRED TAX IN THESE FINANCIAL STATEMENTS HAVE NOT BEEN ADJUSTED TO REFLECT THE CHANGE IN THE TAX RATE. THE FINANCIAL EFFECT OF THE REDUCED TAX RATE WILL BE REFLECTED IN THE 31 DECEMBER 2007 FINANCIAL YEAR. HAD THE PROVISIONS BEEN ADJUSTED, THE TAXATION CHARGE AND DEFERRED TAX FOR THE YEAR FOR THE COMPANY WOULD BE REDUCED BY US$97,000 AND US$7,000 RESPECTIVELY.

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 03/04/1997 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "ROCHE VITAMINS ASIA PACIFIC PTE LTD ".

SUBEQUENTLY, ON 02/01/2004, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "DSM NUTRITIONAL PRODUCTS ASIA PACIFIC PTE. LTD.".

THE COMPANY HAS 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 & CORPORATE REGULATORY

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

1) MANUFACTURE OF PHARMACEUTICAL AND BIOLOGICAL INTERMEDIATES AND FINE

CHEMICALS FOR HUMAN USE

MANUFACTURE MEDICINAL & PHARMACEUTICAL PRODUCTS

2) WHOLESALE OF HEALTH FOOD

WHOLES FOODSTUFFS NEC

DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF

THE COMPANY CONSIST OF BLENDING AND TRADING IN VITAMINS AND FINE

CHEMICALS PRODUCTS.

FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:

BACKGROUND:

THE SUBJECT IS PART OF THE DSM NUTRITIONAL PRODUCTS GROUP.

THE WORLD'S LEADING SUPPLIER OF VITAMINS, CAROTENOIDS AND OTHER FINE CHEMICALS TO THE FEED, FOOD, PHARMACEUTICAL AND PERSONAL CARE INDUSTRIES. THE COMPANY HAS A LONG TRADITION AS A PIONEER IN THE DISCOVERY OF NEW PRODUCTS, NEW FORMULATIONS AND ATTRACTIVE APPLICATIONS FOR ALL INDUSTRY SEGMENTS.

SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:

* MANUFACTURING,SALES,MARKETING AND SUPPLIER OF VITAMINS AND CAROTENOIDS TO THE FEED, FOOD, PHARMACEUTICAL AND COSMETIC INDUSTRIES

PRODUCT DEALINGS:

* AMINO ACIDS

* ANTITUSSIVES

* CARTOENOIDS

* CITRIC ACID

* EMULSIFIERS

* FEED ENZYMES

* INTERMEDIATES

* PUFAs

* TEAVIGO

* UV FILTERS

* VITAMINS

* ANIMAL NUTRITION & HEALTH

* HUMAN NUTRITION & HEALTH

PRODUCTS AT SENOKO SOUTH FACTORY:

* POWDER AND OILY VITAMIN AND MICRONUTRIENT PREMIXES FOR HUMAN USE

TERMS OF PAYMENT:

* TRADE AND OTHER RECEIVABLES: 0-120 DAYS TERM

* TRADE AND OTHER PAYABLES : 30-90 DAYS TERM

QUALITY ASSESSMENT:

* ISO 9000

* GMP STANDARDS

NEWS: DSM ACQUIRES AMERICAN SPECIALTY-RESINS PRODUCER SOLUOL

"EXTRACTS"

-SOURCE: DSM WEBSITE

DATE: 16/01/2008

SCIENCES COMPANY FROM THE NETHERLANDS, TODAY ANNOUNCES THE ACQUISITION OF THE US-BASED COMPANY SOLUOL, A DEVELOPER, PRODUCER AND MARKETER OF HIGH PERFORMANCE URETHANE RESINS WHICH ARE USED IN A WIDE RANGE OF APPLICATIONS, WITH ANNUAL SALES OF USD 20 MILLION. BOTH PARTIES HAVE AGREED NOT TO DISCLOSE FINANCIAL DETAILS.

THE ACQUISITION OF SOLUOL ENHANCES DSM'S SPECIALTY-RESINS PRESENCE IN NORTH AMERICA AND ADDS NEW TECHNOLOGY AS WELL AS A STATE-OF-THE-ART PRODUCTION FACILITY IN RHODE ISLAND. THE ACQUIRED COMPANY WILL BE GROUPED UNDER THE DSM NEORESINS+ BUSINESS UNIT, PART OF THE DSM RESIN BUSINESS GROUP.

FROM THE TELE-INTERVIEW CONDUCTED ON 13/12/2007, THE FOLLOWING WAS

GATHERED:

THE SUBJECT DOES NOT EXPORT AND ONLY SELLS LOCALLTY.

NUMBER OF EMPLOYEES:

* COMPANY - 2007: 70

NO OTHER TRADE INFORMATION IS AVAILABLE ON 13/12/2007.

THE COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF KONINKLIJKE

DSM N.V., INCORPORATED IN THE NETHERLANDS.

NUMBER OF EMPLOYEES (31 DECEMBER):

* COMPANY - 2006: NOT AVAILABLE (2005: NOT AVAILABLE; 2004: 84;

2003: 90; 2002: 90)

REGISTERED ADDRESS:

200 CANTONMENT ROAD

#02-03 SOUTHPOINT

SINGAPORE 089763

- DATE OF CHANGE OF ADDRESS: 01/02/2002

BUSINESS ADDRESS:

78 SHENTON WAY

#21-01 LIPPO CENTRE

SINGAPORE 079120

- RENTED PREMISE

- OWNED BY MCL LAND (78 SW) PTE LTD

- OFFICE

OTHER BUSINESS ADDRESS:

12 SENOKO SOUTH ROAD

SINGAPORE 758093

- OWNED PREMISE

- FACTORY

- SINGAPORE PREMIX PLANT

WEBSITE:

http://www.dsm.com

EMAIL:

marketing.dnpap@dsm.com

MANAGEMENT

THE DIRECTORS AT THE TIME OF THE REPORT ARE:

1) ROLAND KARL SCHLAGENHAUF, A SWISS

- BASED IN SINGAPORE.

2) GERARDUS FRANCISCUS MARIA MOOREN, A DUTCH

- BASED IN THE NETHERLANDS.

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.

HIGH QUALITY COMPETITIVENESS IN ASIA

EXCELLENT BUSINESS CLIMATE

POLITICAL STABILITY.

WEAKNESSES

SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.

AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.

GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.

BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.6% IN 3Q 2007, WEAKER THAN THE 8.4% GROWTH IN 2Q 2007. ALTHOUGH NON-OIL RE-EXPORTS STRENGTHENED IN THE QUARTER, RETAIL SALES RECORDED SLOWER GROWTH.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.6% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 7.5%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF FOOD, BEVERAGES AND TOBACCO (45.7%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (23.3%). OTHER WHOLESALE SEGMENTS THAT REPORTED BETTER BUSINESS WERE WHOLESALING OF INDUSTRIAL AND CONSTRUCTION MACHINERY (9.7%) TELECOMMUNICATIONS AND COMPUTERS (8.3%) AND CHEMICALS AND CHEMICAL PRODUCTS (6.8%).

ON THE OTHER HAND, WHOLESALE SEGMENTS THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-19.4%), HOUSEHOLD EQUIPMENT AND FURNITURE (-4.4%), SHIP CHANDLERS AND BUNKERING (-3.1%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.9% IN 3Q 2007 OVER 3Q 2006. DOMESTIC SALES EXCLUDING PETROLEUM ROSE BY 9.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 3Q 2007 ROSE BY 12.2% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 3Q 2007 OVER PREVIOUS QUARTER. SHIP CHANDLERS AND BUNKERING EXPANDED BY 27.9%, MAINLY DUE TO HIGHER BUNKER SALES.

THE GENERAL WHOLESALE TRADE SECTOR FELL IN 3Q 2007 AFTER RECORDING STRONG GROWTH IN 2Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 3Q 2007 ROSE BY 4.3%, IN COMPARISON TO 3Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 9.0%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (51.2%) AND TIMBER, PAINT AND CONSTRUCTION MATERIALS (15.5%). OTHER WHOLESALE SECTORS THAT REGISTERED BETTER BUSINESS IN 3Q 2007 WERE CHEMICALS AND CHEMICAL PRODUCTS (7.6%) AND TELECOMMUNICATIONS AND COMPUTERS (5.0%)

FOREIGN SALES OF SHIP CHANDLERS AND BUNKERING, GENERAL WHOLESALE TRADE, INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS REGISTERED INCREASES OF 2.6% TO 6.1 %IN 3Q 2007, IN CONTRAST TO THE LOWER SALES IN THE PREVIOUS QUARTER.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 8.0% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 12.0%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 3Q 2007 ROSE BY 4.9% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 3Q 2007 WITH THE EXCEPTION OF CHEMICALS AND CHEMICAL PRODUCTS. WHOLESALE TRADE OF FOOD, BEVERAGES AND TOBACCO, AND SHIP CHANDLERS AND BUNKERING BOTH GREW BY 17.1%. WHOLESALE OF ELECTRONIC COMPONENTS ROSE BY 12.5%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE BY 1.3%, WEAKER THAN THE 7.9% IN 2Q 2007. MOTOR VEHICLES FELL BY 6.8% COMPARED TO THE 2.4% GROWTH IN 2Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.7%, A DECLINE FROM THE 11.O% IN 2Q 2007.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THIS APPLIES PARTICULARLY TO FIRMS IN THE WHOLESALING OF FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, COSMETICS AND TOILETRIES, AND HOUSEHOLD AND ELECTRICAL APPLIANCES.

AS A RESULT OF YEAR-END FESTIVE SHOPPING, A NET WEIGHTED BALANCE OF 31% OF RETAILERS EXPECTS BUSINESS TO IMPROVE IN THE COMING MONTHS. THE RETAIL SECTORS THAT ARE FORECASTING BETTER BUSINESS INCLUDING DEPARTMENT STORE AND SUPERMARKET OWNERS, WEARING APPAREL AND FOOTWEAR, FURNITURE AND FURNISHINGS, AND JEWELLERY AND WATCHES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY

SINGAPORE DEPARTMENT OF STATISTICS

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions