MIRA INFORM REPORT

Report Date :

08.07.2008

IDENTIFICATION DETAILS

Name :	WILMAR TRADING PTE LTD
Registered Office :	56 Neil Road 088830
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^21.06.1988
Com. Reg. No.:	^198802023W
Legal Form :	^Pte Ltd
Line of Business :	Trader in Edible Oils, Oil Seeds, Agricultural Commodities and Edible Oil Futures

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 :	Very Good
Payment Behaviour :	Regular
Litigation :	Exists

Subject Company

WILMAR TRADING PTE LTD

Line Of Business 

TRADER IN EDIBLE OILS, OIL SEEDS, AGRICULTURAL COMMODITIES AND

EDIBLE OIL FUTURES

Parent Company

WILMAR INTERNATIONAL LIMITED

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

COMPANY

Sales : US$4,700,414,000

Networth : US$ 191,075,000

Paid-Up Capital : US$ 42,266,000

Net result : US$ 103,183,000

Net Margin(%) : 2.20

Return on Equity(%) : 54.00

Leverage Ratio : 4.13

COMPANY IDENTIFICATION

^{Subject Company : WILMAR TRADING PTE LTD}

^{Former Name : -}

^{Business Address : 56 NEIL ROAD}

^{Town : SINGAPORE}

^{Postcode : 088830}

^{Country : Singapore}

^{Telephone : 6216 0244}

^{Fax : 6323 1046}

^{ROC Number : 198802023W}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 21/06/1988}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales :4,700,414,000}

^{Networth : 191,075,000}

^{Capital : -}

^{Paid-Up Capital : 42,266,000}

^{Employees : 110}

^{Net result : 103,183,000}

^{Share value : 1}

^{Auditor : ERNST & YOUNG}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 289,000,000 SGD 289,000,000.00}

^{PAID-UP ORDINARY - SGD 289,000,000.00}

REFERENCES

^{Litigation : Yes}

^{Company status : TRADING}

^{Started : 21/06/1988}

PRINCIPAL(S)

^{KUOK KHOON HONG S2507689C Managing Director}

DIRECTOR(S)

^{TEO KIM YONG S0128906C Director}

^{Appointed on : 01/10/1992}

^{Street : 19A YARWOOD AVENUE}

^{THE ARCADIA}

^{Town: SINGAPORE}

^{Postcode: 588015}

^{Country: Singapore}

^{KUOK KHOON HONG S2507689C Managing Director}

^{Appointed on : 01/11/1994}

^{Street : 6 QUEEN ASTRID GARDENS}

^{QUEEN ASTRID GARDENS}

^{Town: SINGAPORE}

^{Postcode: 266865}

^{Country: Singapore}

^{ONG CHENG YAN S2634503J Company Secretary}

^{Appointed on : 01/07/1992}

^{Street : 6 INDUS ROAD}

^#11-04

^{EMERALD PARK TOWER 1}

^{Town: SINGAPORE}

^{Postcode: 169588}

^{Country: Singapore}

^{CHUA PHUAY HEE S0161068F Director}

^{Appointed on : 18/09/2002}

^{Street : 107 DUNBAR WALK}

^{FRANKEL ESTATE}

^{Town: SINGAPORE}

^{Postcode: 459416}

^{Country: Singapore}

^{KUOK KHOON HONG S2507689C Director}

^{Appointed on : 01/04/1991}

^{Street : 6 QUEEN ASTRID GARDENS}

^{QUEEN ASTRID GARDENS}

^{Town: SINGAPORE}

^{Postcode: 266865}

^{Country: Singapore}

^{LEE SIEW CHEAN S7476586F Company Secretary}

^{Appointed on : 18/09/2002}

^{Street : 424 HOUGANG AVENUE 6}

^#03-90

^{Town: SINGAPORE}

^{Postcode: 530424}

^{Country: Singapore}

^{TAN TIANG SOON COLIN S1713527I Company Secretary}

^{Appointed on : 02/05/2006}

^{Street : 25 ANG MO KIO AVENUE 9}

^#11-17

^NUOVO

^{Town: SINGAPORE}

^{Postcode: 569788}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{SOON TIT KOON S0130631F}

^{WONG MEOW FONG S0219916E}

^{LIM KIM HOCK S0418810A}

^{KOH BOON KHENG S1202534C}

^{ZHOU BI QUAN 839959}

^{WONG KHET NGEE SH0035692}

^{GOH ING SING A5577916}

^{XUE GUOPING S305681}

^{YU HUNG YEN STEPHEN 701570701}

^{NICO L S HANS S2719129J}

^{TAN LAY CHIN LYNETTE S0137506G}

^{YU GUANQUAN P5307952}

ACTIVITY(IES)

^{OILS - VEGETABLE Code: 15500}

^{IMPORTERS And EXPORTERS Code: 11760}

^{COMMISSION MERCHANTS Code: 4990}

^{BASED ON ACRA'S RECORD}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND}

^EXPORTERS)

CHARGES

^{Date: 22/09/2005}

^{Comments : CHARGE NO : C200300096 (DISCHARGED - 26/08/2005)}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : ARCHER DANIELS MIDLAND COMPANY}

^{Date: 22/09/2005}

^{Comments : CHARGE NO : C200505737}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : ARCHER DANIELS MIDLAND COMPANY}

^{Comments : CHARGE NO : 9303795 (DISCHARGED - 15/02/1994)}

^{SECURED : US$5,000,000.00}

^{CHARGEE : BHF-BANK AKTIENGESELLCHAFT}

^{Date: 11/04/1996}

^{Comments : CHARGE NO : 9602018 (DISCHARGED - 14/01/1998)}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : COOPERATIVE CENTRALE RAIFFEISEN-BOERENLEEN BANK}

^B.A.

^{Date: 17/01/2003}

^{Comments : CHARGE NO : 9303796 (DISCHARGED - 15/02/1994)}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : BHF-BANK AKTIENGESELLCHAFT}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{OVERSEA-CHINESE BANKING CORPORATION LIMITED}

SHAREHOLDERS(S)

^{WILMAR INTERNATIONAL LIMITED 289,000,000 Company}

^{Street : 56 NEIL ROAD}

^{Town: SINGAPORE}

^{Postcode: 088830}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{LONGHLIN PTE LTD 18,000}

^{WILMAR HOLDINGS PTE LTD 70,000,000}

^{WILMAR TRADING CO LTD 10,000,000}

^{YEE KEE WAN 17,999}

^{MUTIARA 18,000}

^{KHOO TECK YAN 1}

^{LIM KIM HOCK 46,000}

HOLDING COMPANY

^{WILMAR INTERNATIONAL LIMITED 199904785Z % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : GOOD}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

LITIGATION(S)

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

^{Case Number: HWS00502/2001}

Defendant WILMAR TRADING PTE LTD ROC # : 198802023W

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

^{Case Number: MCS07561/1997}

Defendant WILMAR TRADING PTE LTD ROC # : 198802023W

FINANCIAL ELEMENTS

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

^{Date Account Lodged: 28/04/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp 169,000 93,000}

^{Tangible Fixed Assets: 1,165,000 527,000}

^{Total Fixed Assets: 1,334,000 620,000}

^{Inventories: 19,287,000 17,579,000}

^{Receivables: 621,205,000 455,268,000}

^{Cash,Banks, Securitis: 7,728,000 2,432,000}

^{Other current assets: 331,195,000 224,880,000}

^{Total Current Assets: 979,415,000 700,159,000}

^{TOTAL ASSETS: 980,749,000 700,779,000}

^{--- LIABILITIES ---}

^{Equity capital: 42,266,000 42,266,000}

^{Profit & lost Account: 148,809,000 100,626,000}

^{Total Equity: 191,075,000 142,892,000}

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

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

^{Trade Creditors: 284,496,000 155,245,000}

^{Due to Bank: 383,161,000 376,809,000}

^{Provisions: 6,641,000 2,922,000}

^{Other Short term Liab.: 101,865,000 6,109,000}

^{Prepay. & Def. charges: 13,480,000 16,771,000}

^{Total short term Liab.: 789,643,000 557,856,000}

^{TOTAL LIABILITIES: 789,674,000 557,887,000}

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

^{Net Sales 4,700,414,000 4,293,488,000}

^{Purchases,Sces & Other Goods: 4,399,316,000 3,976,377,000}

^{Gross Profit: 301,098,000 317,111,000}

^{NET RESULT BEFORE TAX: 110,132,000 38,459,000}

^{Tax : 6,949,000 3,051,000}

^{Net income/loss year: 103,183,000 35,408,000}

^{Interest Paid: 28,349,000 35,206,000}

^{Depreciation: 232,000 200,000}

^{Dividends: 35,000,000 5,806,000}

^{Directors Emoluments: 1,269,000 682,000}

^{Wages and Salaries: 5,911,000 4,581,000}

^{Financial Income: 222,000 50,000}

RATIOS

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

^{Turnover per employee: 42731036.36 39031709.09}

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

^{Fin. Charges / Turnover(%):0.01 0.01}

^{Stock / Turnover(%): 0.00 0.00}

^{Net Margin(%): 2.20 0.82}

^{Return on Equity(%): 54.00 24.78}

^{Return on Assets(%): 10.52 5.05}

^{Dividends Coverage: 2.95 6.10}

^{Net Working capital: 189772000.00 142303000.00}

^{Cash Ratio: 0.01 0.00}

^{Quick Ratio: 0.80 0.82}

^{Current ratio: 1.24 1.26}

^{Receivables Turnover: 47.58 38.17}

^{Leverage Ratio: 4.13 3.90}

^{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}

^{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 INCREASED BY 33.72% FROM US$142,892,000 IN FY 2005 TO US$191,075,000 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$148,809,000 (2005: US$100,626,000); A RISE OF 47.88% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY AMOUNT DUE TO BANKS WHICH MADE UP 48.52% (2005: 67.55%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$383,161,000 (2005: US$376,809,000). THE BREAKDOWN WERE AS FOLLOWS:}

^{* SHORT-TERM BANK LOANS AND PRE-SHIPMENT LOANS - 2006: US$278,283,000}

^{(2005: US$224,137,000)}

^{* TRUST RECEIPTS (BANKS) - 2006: US$13,607,000 (2005: US$44,826,000)}

^{* BILLS DISCOUNTED (BANKS) - 2006: US$91,271,000 (2005: US}

^{$107,846,000)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 3.90 TIMES TO 4.13 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE WITH NET WORKING CAPITAL INCREASED BY 33.36% FROM US$142,303,000 IN FY 2005 TO US$189,772,000 IN FY 2006. HOWEVER, CURRENT AND QUICK RATIOS DECREASED TO 1.24 TIMES (2005: 1.26 TIMES) AND 0.80 TIMES (2005: 0.82 TIMES).}

^{PROFITABILITY:}

^{SUBJECT POSTED AN INCREASE IN REVENUE BY 9.48% FROM US$4,293,488,000 TO US$4,700,414,000 IN FY 2006. NET PROFIT UPSURGED BY 1.91 TIMES TO US$103,183,000 (2005: US$35,408,000). ASL A RESULT, NET MARGIN ROSE TO 2.20% (2004: 0.82%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING. IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 48 DAYS (2005: 38 DAYS).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{* INTEREST-FREE LOANS TO STAFF - 2006: US$169,000 (2005: US$93,000)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{INTEREST BEARING LOANS AND BORROWINGS}

^{TERMS OF BORROWINGS}

^{THE BANK FACILITIES UP TO A LIMIT OF US$782.5 MILLION (US$694.5}

^{MILLION) ARE GUARANTEED BY:}

^{(I) THE IMMEDIATE HOLDING COMPANY; AND/OR}

^{(II) RELATED COMPANIES; AND/OR}

^{(III) RELATED PARTIES; AND/OR}

^{(IV) PERSONAL GUARANTEE GIVEN BY CERTAIN SHAREHOLDERS OF THE ULTIMATE}

^{HOLDING COMPANY}

^{MATURITY OF BORROWINGS}

^{THE CURRENT BORROWINGS HAVE AN AVERAGE MATURITY OF 3 MONTHS (2005: 3 MONTHS) FROM THE END OF THE FINANCIAL YEAR.}

^{EFFECTIVE INTEREST RATES}

^{THE WEIGHTED AVERAGE EFFECTIVE INTEREST RATES AT THE BALANCE SHEET}

^{DATE WERE AS FOLLOWS:}

^{* SHORT-TERM BANK LOANS AND PRE-SHIPMENT LOANS - 2006: 6.42% (2005:}

^5.43%)

^{* TRUST RECEIPTS - 2006: 6.20% (2005: 5.51%)}

^{* BILLS DISCOUNTED - 2006: 6.21% (2005: 5.40%)}

^{CONTINGENT LIABILITIES:}

^{DETAILS AND ESTIMATES OF MAXIMUM AMOUNTS OF CONTINGENT LIABILITIES}

^{ARE AS FOLLOWS:}

^{(I) AT 31 DECEMBER 2006, THE COMPANY HAS UNSECURED CONTINGENT LIABILITIES IN RESPECT OF CORPORATE GUARANTEES FOR CREDIT FACILITIES AND FOREIGN EXCHANGE FACILITIES EXTENDED BY BANKS TO RELATED CORPORATIONS UP TO A LIMIT OF US$127 MILLION (2005: US$135 MILLION). AT 31 DECEMBER 2006, CREDIT FACILITIES AND FOREIGN EXCHANGE FACILITIES UTILISED BY THE RELATED CORPORATIONS AMOUNTED TO US$66 MILLION (2005: US$98 MILLION).}

^{EXPOSURES TO INDONESIA}

^{(A) INCLUDED IN THE BALANCE SHEET OF THE COMPANY AT 31 DECEMBER 2006 ARE UNITED STATES DOLLAR DENOMINATED PREPAYMENTS MADE BY THE COMPANY TO RELATED INCORPORATED IN INDONESIA, AMOUNTING TO US $190,883,926 (US$141,193,000) TO SECURE THE SOURCES OF COMMODITY SUPPLIES. THESE PREPAYMENTS ARE INCLUDED IN CURRENT ASSETS IN THE COMPANY'S BALANCE SHEET AS FOLLOWS:}

^{DUE FROM RELATED COMPANIES - TRADE - 2006: US$190,884,000 (2005: US $141,193,000)}

^{THE DIRECTORS, HAVING CONSIDERED THE NATURE OF THE BUSINESS, ARE CONFIDENT OF THE ULTIMATE RECOVERABILITY OF THE ABOVEMENTIONED PREPAYMENTS.}

^{(B) THE COMPANY HAS GIVEN CORPORATE GUARANTEES AMOUNTING TO US$127}

^{MILLION (2005: US$135 MILLION) IN RESPECT OF RELATED COMPANIES INCORPORATED IN INDONESIA. THE DIRECTORS, HAVING CONSIDERED THAT THESE COMPANIES ARE VIABLE, ARE OF THE OPINION THAT NO LOSSES WILL ARISE ON THE CORPORATE GUARANTEES.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 21/06/1988 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "WILMAR TRADING PTE LTD".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 289,000,000 SHARES, OF A VALUE OF S$289,000,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS AND}

^EXPORTERS)

^{2) WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF A TRADER IN EDIBLE OILS, OIL SEEDS, AGRICULTURAL COMMODITIES AND EDIBLE OIL FUTURES.}

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

^ACTIVITIES:

^{* LEADING PROCESSOR, MERCHANDISER, TRADER AND DISTRIBUTOR OF}

^{EDIBLE OILS, OILSEEDS AND RELATED PRODUCTS IN ASIA}

^{HOUSE BRANDS:}

^{* SANIA}

^{* FORTUNE}

^{* ALSO CARRY OTHER THIRD PARTIES' BRAND.}

^{EXPORT COUNTRIES:}

^ASIA

^{* THAILAND}

^{* MYANMAR}

^{* VIETNAM}

^{* PHILIPPINES}

^{* CHINA}

^{* SOUTH KOREA}

^{* JAPAN}

^{* BANGLADESH}

^{* PAKISTAN}

^{* INDIA}

^{* SRI LANKA}

^{MIDDLE EAST}

^{* UNITED ARAB EMIRATES}

^{* SAUDI ARABIA}

^{* JORDAN}

^{* TURKEY}

^EUROPE

^{* RUSSIA}

^{* UKRAINE}

^{* GREECE}

^{* ITALY}

^{* NETHERLANDS}

^{* GERMANY}

^{* DENMARK}

^{* SWEDEN}

^{* UNITED KINGDOM}

^{* FRANCE}

^AFRICA

^{* EGYPT}

^{* TUNISIA}

^{* MOROCCO}

^{* GHANA}

^{* TOGO}

^{* UGANDA}

^{* KENYA}

^{* TANZANIA}

^{* MOZAMBIQUE}

^{* SOUTH AFRICA}

^AMERICAS

^{* BRAZIL}

^{* ARGENTINA}

^{* UNITED STATES OF AMERICA}

^AUSTRALIA

^{SOME OF SUBJECT'S CLIENTS:}

^{* THE PROCTER & GAMBLE COMPANY}

^{* CARGILL, INCORPORATED}

^{* BUNGE LIMITED}

^{* COGNIS DEUTSCHLAND GMBH & CO. KG}

^{* UNILEVER N.V.}

^{* ALFRED C. TOEPFER INTERNATIONAL GMBH}

^{* PT ARNOTT INDONESIA}

^{* HINDUSTAN LEVER LIMITED}

^{* NIRMA LIMITED}

^{* VVF LIMITED}

^{* CHINA GRAINS & OILS GROUP CORPORATION}

^{* BEIJING HEYIRONG CEREALS & OILS CO. LTD}

^{* BEIJING ORIENT-HUAKEN CEREAL & OIL CO. LTD}

^{* CHINA NATIONAL VEGETABLE OIL CORPORATION}

^{* NESTLE S.A.}

^{* THE SAVOLA GROUP}

^{INDUSTRIES SERVED:}

^{* FOOD MANUFACTURING}

^{* COSMETIC}

^{* PHARMACEUTICAL}

^{* BIO-DIESEL}

^{SUBJECT IS A MEMBER OF:}

^{* SINGAPORE CHINESE CHAMBERS OF COMMERCE & INDUSTRY}

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

^{WITH EFFECT FROM 14 JULY 2006, THE IMMEDIATE AND PENULTIMATE HOLDING COMPANIES ARE WILMAR INTERNATIONAL LIMITED AND WILMAR HOLDINGS PTE LTD RESPECTIVELY, BOTH INCORPORATED IN SINGAPORE, AND THE ULTIMATE HOLDING COMPANY IS WILMAR INTERNATIONAL HOLDINGS LIMITED, WHICH IS INCORPORATED IN THE BRITISH VIRGIN ISLANDS.}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2006: 110 (2005: 128)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{56 NEIL ROAD}

^{SINGAPORE 088830}

^{DATE OF CHANGE OF ADDRESS : 17/12/1993}

^{- RENTED PREMISE}

^{- PREMISE OWNED BY: HANRU INVESTMENTS (PTE) LTD}

^{WEBSITE: www.wilmar-international.com}

^{EMAIL: info@wilmar.com.sg}

MANAGEMENT

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

^{1) TEO KIM YONG, A SINGAPOREAN}

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

^{KENSPOT INTERNATIONAL PTE LTD}

^{WILMAR INTERNATIONAL LIMITED}

^{2) CHUA PHUAY HEE, A SINGAPOREAN}

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

^{WILMAR HOLDINGS PTE LTD}

^{WILMAR INTERNATIONAL LIMITED}

^{ACALPO WILMAR PTE LTD}

^{3) KUOK KHOON HONG, A SINGAPOREAN}

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

^{SECURA SINGAPORE PTE. LTD.}

^{SECURA FORMS PTE LTD}

^{LONGHLIN PTE LTD}

^{WILMAR HOLDINGS PTE LTD}

^{WILMAR INTERNATIONAL LIMITED}

^{JOSOVINA COMMODITIES PTE LTD}

^{KENSPOT INTERNATIONAL 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.

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.43.12
UK Pound	1	Rs.85.08
Euro	1	Rs.67.41

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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