MIRA INFORM REPORT

Report Date :

07.07.2008

IDENTIFICATION DETAILS

Name :	AMTEL INVESTMENT HOLDINGS PTE LTD

Registered Office :	Singapore

Country :	^{50 Raffles Place} ^#44-04 ^{Singapore Land Tower 048623}

Financials (as on) :	31.03.2007

Date of Incorporation :	^20.12.2001

Com. Reg. No.:	^200108091W

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Sourcing and Trading of Tyres, Raw Material for Tyres and Rubber in the Far East

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory

Payment Behaviour :	Regular

Litigation :	Exists

Subject Company

AMTEL INVESTMENT HOLDINGS PTE LTD

Line Of Business

SOURCING AND TRADING OF TYRES, RAW MATERIAL FOR TYRES AND

RUBBER IN THE FAR EAST

Parent Company

Financial Elements

FY 2007

CONSOLIDATED

Sales : US$171,105,274

Networth : US$3,254,912

Paid-Up Capital : US$1,492,086

Net result : US$983,176

Net Margin(%) : 0.57

Return on Equity(%) : 30.21

Leverage Ratio : 15.25

COMPANY IDENTIFICATION

^{Subject Company : AMTEL INVESTMENT HOLDINGS PTE LTD}

^{Former Name : -}

^{Business Address : 50 RAFFLES PLACE}

^#44-04

^{SINGAPORE LAND TOWER}

^{Town : SINGAPORE}

^{Postcode
: 048623}

^{County : -}

^{Country : Singapore}

^{Telephone : 6323 9345}

^{Fax : 6323 2789}

^{ROC Number : 200108091W}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form :
Exempt Pte Ltd}

^{Date Inc. :
20/12/2001}

^{Previous Legal Form : -}

^{Summary year : 31/03/2007}

^{Sales :
171,105,274}

^{Net Worth :
3,254,912}

^{Capital :
-}

^{Paid-Up Capital : 1,492,086}

^{Employees : -}

^{Net result :
983,176}

^{Share value : -}

^{AUDITOR: ERNST &
YOUNG}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 3,200,000 SGD 3,200,000.00}

^{PAID-UP ORDINARY - SGD
3,200,000.00}

REFERENCES

^{Litigation :
Yes}

^{Company status : TRADING}

^{Started :
20/12/2001}

PRINCIPAL(S)

^{SUMEER MAHAJAN S2648468E Director}

DIRECTOR(S)

^{CHENG LIAN SIANG S1519832Z Company Secretary}

^{Appointed on :
02/12/2002}

^{Street : 7 SIN MING WALK}

^#20-17

^{THE GARDENS AT BISHAN}

^{Town : SINGAPORE}

^{Postcode : 575577}

^{Country : Singapore}

^{SUMEER MAHAJAN S2648468E Director}

^{Appointed on :
03/01/2002}

^{Street : 6 PEACH GARDEN}

^#19-08

^{PEACH GARDEN}

^{Town :
SINGAPORE}

^{Postcode :
437606}

^{Country :
Singapore}

FORMER DIRECTOR(S)

^{DANIEL GUPTA 62NO120665}

^{SUDHIR GUPTA S2628481C}

^{SEOW YOKE CHAN S0193242Z}

^{ARANGANNAL S/O
KATHAMUTHU S1290395B}

ACTIVITY(IES)

^{INVESTMENT
COMPANIES
Code:12095}

^{IMPORTERS And
EXPORTERS Code:11760}

^{TYRE DISTRS And
MFRS Code:22750}

^{RUBBER - SYNTHETIC Code:18675}

^{BASED ON ACRA'S RECORD}

^{1) OTHER INVESTMENT
HOLDING COMPANIES}

^{2) GENERAL WHOLESALE
TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

CHARGES

^{Date :
30/03/2006}

^{Comments : CHARGE NO : C200602059 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND
ALL MONIES OWING}

^{CHARGEE(S) : KBC BANK N.V.}

^{Date :
06/01/2006}

^{Comments : CHARGE NO : C200600183
(DISCHARGED DATE: 12/01/2007)}

^{AMOUNT SECURED: 0.00 AND
ALL MONIES OWING}

^{CHARGEE(S) : STANDARD CHARTERED BANK}

^{Date :
07/01/2008}

^{Comments : CHARGE NO : C200800215}

^{AMOUNT SECURED: 0.00 AND
ALL MONIES OWING}

^{CHARGEE(S) : CITIBANK N.A.}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{UNITED OVERSEAS BANK
LIMITED}

^{KBC BANK N.V.}

^{STANDARD CHARTERED BANK}

^{CITIBANK N.}

SHAREHOLDERS(S)

^{SUMEER MAHAJAN 3,200,000 Private Person}

^{Street : 6 PEACH GARDEN}

^#19-08

^{PEACH GARDEN}

^{Town: SINGAPORE}

^{Postcode: 437606}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{DANIEL GUPTA 499,998}

^{SUDHIR GUPTA 1,750,000}

SUBSIDIARY(IES)

^{AM-TEL ENTERPRISE SDN
BHD}

^{AMTEL INVESTMENT
HOLDINGS LIMITED}

^{AMTEL INTERNATIONAL
TRADING (SHANGHAI) CO. LTD.}

^{SINOCHEM PTE. LTD.}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality :
AVERAGE}

^{Liquidity :
SUFFICIENT}

^{Payments :
REGULAR}

^{Trend :
UPWARD}

^{Financial Situation : AVERAGE}

LITIGATION(S)

Type Of Case : District Court - W/S

Case Number : DCS03011/2007

Defendant AMTEL INVESTMENT HOLDINGS PTE LTD ROC # : 200108091W

Type Of Case : District Court - W/S

Case Number : DCS03175/2007

Defendant AMTEL INVESTMENT HOLDINGS PTE LTD ROC # : 200108091W

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged : 19/10/2007 -}

^{Balance Sheet Date : 31/03/2007 31/03/2006}

^{Number of weeks : 52 52}

^{Consolidation Code : CONSOLIDATED CONSOLIDATED}

^{---
ASSETS ---}

^{Intangible Fixed
Assets: 1,658 -}

^{Tangible Fixed Assets : 53,255 87,865}

^{Total Fixed Assets
: 54,913 87,865}

^{Inventories : 14,367,873 12,181,452}

^{Receivables : 32,519,187 20,466,006}

^{Cash,Banks, Securitis : 2,308,946 3,337,557}

^{Other current assets : 3,627,699 1,262,549}

^{Total Current Assets : 52,823,705 37,247,564}

^{TOTAL ASSETS :
52,878,618
37,335,429}

^{--- LIABILITIES
---}

^{Equity capital : 1,492,086 1,492,086}

^{Reserves : 1,762,826 782,741}

^{Profit & lost Account : - -}

^{Other : - -4,072}

^{Total Equity
: 3,254,912 2,270,755}

^{L/T deffered taxes : 14,843 3,158}

^{Total L/T Liabilities
: 14,843 3,158}

^{Trade Creditors : 48,978,111 34,368,161}

^{Prepay. & Def. charges
: 377,904 574,963}

^{Due
to Bank : - -}

^{Provisions : 164,212 54,135}

^{Other Short term Liab.
: 88,636 64,257}

^{Total short term Liab. : 49,608,863 35,061,516}

^{TOTAL LIABILITIES
: 49,623,706 35,064,674}

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

^{Net Sales : 171,105,274 126,079,402}

^{Purchases,Sces & Other
Goods : 164,470,528 122,385,656}

^{Gross Profit
: 6,634,746 3,693,746}

^{Result of ordinary
operations: 3,376,018 1,546,072}

^{NET RESULT BEFORE TAX : 1,173,653 -419,208}

^{Tax : 190,477 16,462}

^{Net income/loss year : 983,176 -435,670}

^{Interest Paid : 2,274,876 1,993,197}

^{Depreciation : 36,317 49,946}

^{Dividends : - 300,000}

^{Directors Emoluments : - -}

^{Wages and Salaries :
1,103,699
871,278}

^{Financial Income : 72,511 27,917}

RATIOS

^{31/03/2007 31/03/2006}

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

^{Fin. Charges /
Turnover(%) : 0.01 0.02}

^{Stock / Turnover(%) : 0.08 0.10}

^{Net Margin(%) : 0.57 -0.35}

^{Return on Equity(%) : 30.21 -19.19}

^{Return on Assets(%) : 1.86 -1.17}

^{Dividends Coverage : - -1.45}

^{Net Working capital : 3214842.00 2186048.00}

^{Cash Ratio: : 0.05 0.10}

^{Quick Ratio: : 0.70 0.68}

^{Current ratio: : 1.06 1.06}

^{Receivables Turnover: : 68.42 58.44}

^{Leverage Ratio: : 15.25 15.44}

^{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 GROUP WAS SEEN TO BE FAIR IN VIEW OF} ^{THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE
WITH NET WORTH IMPROVED BY} ^{43.34% FROM US$2,270,755 IN 2006 TO US$3,254,912 IN 2007. THIS WAS
DUE} ^{TO HIGHER RESERVES OF US$ 1,762,826 (2006: US$782,741); A RISE
OF 1.25} ^{TIMES FROM THE PRIOR YEAR.}

^LEVERAGE:

^{IN THE SHORT TERM, SUBJECT WAS LARGELY
FINANCED BY TRADE CREDITORS} ^{WHICH MADE UP 98.73% (2006: 98.02%) OF THE TOTAL CURRENT
LIABILITIES} ^{AND AMOUNTED TO US$48,978,111 (2006: US$34,368,161). THE
BREAKDOWN IS}

^{AS FOLLOWS:}

^{* TRADE PAYABLES - 2007: US$48,978,111 (2006:
US$34,223,982)}

^{* DUE TO RELATED PARTIES
- 2007: NIL (2006: US$144,179)}

^{IN THE LONG TERM, SUBJECT ONLY INCURRED
DEFERRED TAXATION OF US$14,843} ^{(2006: US$3,158).} ^{IN ALL, LEVERAGE RATIO FELL FROM
15.44 TIMES TO 15.25 TIMES DESPITE A} ^{GREATER RISE IN TOTAL
LIABILITIES TO TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS
PASSABLE WITH THE RISE} ^{IN NET WORKING CAPITAL AND LIQUIDITY RATIO. CURRENT RATIO REMAINED
AT} ^{1.06 TIMES AND QUICK RATIO IMPROVED TO 0.70 TIMES FROM 0.68 TIMES
IN} ^{2006. SIMILARLY, NET WORKING CAPITAL ROSE BY 47.06% FROM
US$2,186,048} ^{IN 2006 TO US$3,214,842 IN 2007.}

^{CASH AND CASH EQUIVALENTS
COMPRISES OF:}

^{* CASH AND BANK BALANCES
- 2007: US$1,519,088 (2006: US$1,571,486)}

^{* FIXED DEPOSITS - 2007: US$789,858 (2006: US$1,766,071)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 35.71% FROM
US$126,079,402 IN 2006 TO} ^{US$171,105,274 AND NET PROFIT ROSE BY 3.26 TIMES TO US$983,176 (2006:} ^{US$-435,670).
HENCE, NET MARGIN ROSE TO 0.57% (2006: -0.35%).}

^{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 FAIR CONSIDERING THAT ITS INTEREST} ^{EXPENSES WERE FAIRLY HIGH AT US$2,274,876 (2006: US$1,993,197).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITIES}

^GUARANTEE

^{THE COMPANY IS A GUARANTOR FOR BANKING
FACILITIES EXTENDED TO NEWLINE} ^{AGENCIES PTE LTD, AN AFFLIATED COMPANY. AS AT 31 MARCH 2007, THE} ^{FACILITY UTILISED BY THIS AFFILIATED COMPANY FOR WHICH THE COMPANY IS} ^{JOINTLY AND SEVERALLY LIABLE AMOUNTED TO US$605,908 (2006:} ^US$510,193).

^{LEGAL CLAIM}

^{TWO ORDERS OF COURT FROM THE SINGAPORE HIGH
COURT DATED 25 JULY 2007} ^{AGAINST THE COMPANY HAVE BEEN SERVED ON THE COMPANY ON 14 AUGUST
2007} ^{WITH RESPECT TO 2 PURPORTED ARBITRAL TRIBUNAL AWARDS DATED 12
FEBRUARY} ^{2007 AND 30 JANUARY 2007 RESPECTIVELY MADE IN 2
ARBITRATIONS BY TWO} ^{OVERSEAS CUSTOMERS. THE COMPANY HAS APPLIED TO
SET ASIDE THE ORDERS} ^{OBTAINED AGAINST THEM ON 7 AUGUST 2007 AND ITS
LEGAL COUNSEL IS OF} ^{OPINION THAT THE COMPANY HAS A VALID BASIS FOR
APPLYING TO SET ASIDE} ^{THE ORDERS. HENCE, NO PROVISION FOR ANY
LIABILITY HAS BEEN MADE BY THE} ^{MANAGEMENT IN THESE FINANCIAL
STATEMENTS.}

^{LIMITED EXEMPT PRIVATE COMPANY:}

^{WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT
OWNED BY ANY CORPORATE} ^{BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY} ^{IS KNOWN AS AN EXEMPT PRIVATE COMPANY.}

^{AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER
AMOUNT OF PRIVACY THAN A} ^{PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE} ^{REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS} ^{DIRECTORS,
SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:}

^{1. THE COMPANY IS AN
EXEMPT PRIVATE COMPANY.}

^{2. THE AUDITED ACCOUNTS
HAVE BEEN TABLED BEFORE THE SHAREHOLDERS}

^{AT THE ANNUAL GENERAL
MEETING.}

^{3. THE COMPANY IS ABLE
TO MEET ITS LIABILITIES.}

^{THERE IS THEREFORE NO DISCLOSURE TO THE
PUBLIC OF THE ACCOUNTS} ^{OF THE COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITEDEVERY
YEAR AND APPROVED AT AN ANNUAL GENERAL MEETING OF THE} ^COMPANY.

^{A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE
GOVERNMENT MAY} ^{BECOME AN
EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN THE} ^{NATIONAL
INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION.}

^{EXEMPT FROM AUDIT}

^{AN EXEMPT PRIVATE COMPANY IS EXEMPT FROM
AUDIT REQUIREMENTS IF THE} ^{STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31
MAY} ^{2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED
$2.5} ^{MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT
OF THE} ^{TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE
STILL} ^{REQUIRED TO MAINTAIN PROPER ACCOUNTING.}

BACKGROUND/OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{20/12/2001 AS A LIMITED EXEMPT PRIVATE
COMPANY AND IS TRADING UNDER} ^{ITS PRESENT NAMESTYLE AS "AMTEL
INVESTMENT HOLDINGS PTE LTD".}

^{THE COMPANY HAS AN
ISSUED AND PAID-UP CAPITAL OF} ^{3,200,000 SHARES OF A VALUE OF S$3,200,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{1) OTHER INVESTMENT
HOLDING COMPANIES}

^{2) GENERAL WHOLESALE
TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

^{DURING THE FINANCIAL
YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF} ^{THE COMPANY CONSIST OF IMPORTERS AND
EXPORTERS OF RUBBER, TYRE,} ^{TYRE RAW MATERIALS AND RELATED PRODUCTS
AND INVESTMENT HOLDINGS.}

^{THE COMPANY AND A
SUBSIDIARY HAVE REGISTERED BRANCHES IN IRAN AND} ^{DUBAI WITH SIMILAR PRINCIPAL
ACTIVITIES.}

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

^{SUBJECT ENGAGES IN THE
FOLLOWING ACTIVITIES:}

^{* SOURCING AND TRADING
OF TYRES, RAW MATERIAL FOR TYRES AND RUBBER IN}

^{THE FAR EAST}

^{PRODUCTS DEALINGS:}

^{* NATURAL RUBBER}

^{* SYNTHETIC RUBBER}

^{* PETROLEUM PRODUCTS,
PETROCHEMICALS}

^{MARKET PRESENCE:}

^{* RUSSIA, INDIA, IRAN,
SINGAPORE, CHINA, KOREA}

^{IMPORT COUNTRIES:}

^{* RUSSIA}

^{EXPORT COUNTRIES:}

^{* MIDDLE EAST, AFRICAN
MARKETS}

^{TERMS OF PAYMENT:}

^{* TRADE AND OTHER
PAYABLES : 30 DAYS TERM}

^{* TRADE AND OTHER
RECEIVABLES: 30-180 DAYS TERM}

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

^{NUMBER OF EMPLOYEES (31
MARCH):}

^{* COMPANY - 2007: N.A.
(2006: N.A.; 2005: 15; 2004: 7)}

^{* GROUP - 2007: N.A. (2006: N.A.; 2005: 23; 2004:
-)}

^{REGISTERED AND BUSINESS
ADDRESS:}

^{50 RAFFLES PLACE}

^#44-04

^{SINGAPORE LAND TOWER}

^{SINGAPORE 048623}

^{DATE OF CHANGE OF
ADDRESS: 06/10/2003}

^{- PROPERTY RECORD WAS
NOT AVAILABLE}

^WEBSITE:

^{http://www.amteltyre.com
(RUSSIAN)}

^{EMAIL : -}

MANAGEMENT

^{THE DIRECTOR AT TIME OF
THIS REPORT IS:}

^{1) SUMEER MAHAJAN, A
SINGAPOREAN}

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

^{AMTEL VENTURES 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

SINGAPORE’S ECONOMY GREW BY 5.4% IN 4Q 2007, SLOWER THAN THE 9.5% GROWTH IN 3Q 2007. GROW MOMENTUM WAS LED BY CONSTRUCTION AND FINANCIAL SERVICES. FOR THE WHOLE OF 2007, THE ECONOMY GREW BY 7.7%, DOWN FROM 8.2% IN 2006.

THE MANUFACTURING SECTOR ROSE BY 0.2% IN 4Q 2007, SLOWER THAN THE 11.0% IN 3Q 2007. THE SMALL GROWTH WAS ATTRIBUTED TO A 28.0% CONTRACTION IN THE BIOMEDICAL MANUFACTURING SECTOR. ON THE OTHER HAND, ELECTRONICS, CHEMICALS, PRECISION ENGINEERING AND TRANSPORT ENGINEERING SECTOR PERFORMED BETTER. OVERALL, THE MANUFACTURING SECTOR POSTED A 5.8% GROWTH IN 2007, DOWN FROM 12.0% IN 2006.

THE FINANCIAL SERVICES SECTOR ROSE SIGNIFICANTLY BY 16% IN 4Q 2007, FOLLOWING A 20% GROWTH IN THE PREVIOUS QUARTER. MOST SECTORS EXPERIENCE STRONG EXPANSION WITH THE EXCEPTION OF STOCK BROKING AND FUND MANAGEMENT ACTIVITIES WHICH HAVE SLOWED DOWN. OVERALL, THE FINANCIAL SERVICES SECTOR POSTED A 17% GROWTH IN 2007, HIGHER THAN 11.0% IN 2006.

THE CONSTRUCTION SECTOR REGISTERED A STRONG GROWTH. THE SECTOR GREW BY 24%, FOLLOWING 20% GAIN IN 3Q 2007. GROWTH MOMENTUM FOR THE WHOLE YEAR GREW 20%, ITS FASTEST GROWTH SINCE 1996.

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.0% IN 4Q 2007, SLOWER THAN THE 6.8% GROWTH IN 3Q 2007. NON-OIL RE-EXPORTS SAW GROWTH REDUCED FROM 9.0% IN 3Q 2007 TO 7.0% IN 4Q 2007. RETAIL SALES FELL BY 2.5% IN 4Q 2007, FOLLOWING A 1.5% GROWTH IN 3Q 2007. OVERALL, THE WHOLESALE AND RETAIL TRADE SECTOR POSTED A 7.3% GROWTH IN 2007, DOWN FROM 10.0% IN 2006.

THE TRANSPORT AND STORAGE SECTOR ROSE BY 5.4% IN 4Q 2007, FROM 5.0% IN 3Q 2007. HIGHER GROWTH IN THE SEA TRANSPORT SEGMENT WAS OFFSET BY SLOWER GROWTH IN THE AIR TRANSPORT SEGEMENT. OVERALL, THE TRANSPORT AND STORAGE SECTOR POSTED A 5.1% GROWTH IN 2007, UP FROM 4.7% IN 2006.

THE HOTELS AND RESTAURANTS SECTOR GREW BY A SMALLER 2.5% FROM 4.9% IN 3Q 2007. VISITOR ARRIVALS ROSE 5.5% IN 4Q 2007, SIMILAR TO 5.4% RISE IN 3Q 2007. HOWEVER, THE AVERAGE OCCUPANCY RATE OF HOTELS DIPPED TO 86.0% IN 4Q 2007 FROM 88.0% IN 4Q 2006. VISITOR ARRIVALS ROSE 5.4% TO REACH A RECORD OF 10.3 MILLION IN 2007. OVERALL, THE HOTELS AND RESTAURANTS SECTOR POSTED A 4.4% GROWTH IN 2007, DOWN FROM 4.8% IN 2006.

THE INFORMATION AND COMMUNICATIONS SECTOR ROSE 6.1% IN 4Q 2007, SLIGHTLY SLOWER THAN THE 6.6% IN 3Q 2007. BOTH THE TELECOMMUNICATIONS AND IT SERVICES SEGMENTS REMAINED HEALTHY DURING THE QUARTER. FOR THE TELECOMMUNICATIONS SEGMENT, THE GROWTH OF INTERNATIONAL TELEPHONE CALLS DURATION AND NUMBER OF SUBSCRIBERS FOR BOTH MOBILE PHONE SERVICE AND BROADBAND INTERNET REMAINED STRONG. OVERALL, THE INFORMATION AND COMMUNICATIONS SECTOR POSTED A 6.3% GROWTH IN 2007, UP FROM 4.6% IN 2006.

THE BUSINESS SERVICES SECTOR EXPANDED BY 8.7%, HIGHER THAN THE 7.5% GAIN IN 3Q 2007. GROWTH WAS HEALTHY ACROSS ALL SEGMENTS, WITH GOOD PERFORMANCES IN THE BUSINESS REPRESENTATIVE OFFICES AND REAL ESTATE SEGMENTS. OVERALL, THE BUSINESS SERVICES SECTOR POSTED A 7.8% GROWTH IN 2007, UP FROM 6.9% IN 2006.

NEWS

SINGAPORE ECONOMY GROWS 7.2% ON STRONG SHOWING IN MANUFACTURING

SINGAPORE’S ECONOMY TURNED OUT TO BE SURPRISINGLY RESLIENT IN THE FIRST QUARTER, EASILY BEATING MARKET EXPECTATIONS WITH STRONG GROWTH OF 7.2%.

THE ADVANCE ESTIMATES ISSUED BY THE MINISTRY OF TRADE AND INDUSTRY (MTI) REPORTED YESTERDAY WERE A MARKED IMPROVEMENT OVER THE 5.4% POSTED IN THE FINAL QUARTER OF LAST YEAR. EARLIER REPORTS HAD SUGGESTED MARKET EXPECTATIONS OF 5.9% GROWTH. ON A SEASONALLY ADJUSTED ANNUALISED BASIS, THE ECONOMY GREW AT A BREAKNECK RATE OF 16.9% QUARTER-ON-QUARTER. IT SHRANK 4.8% IN 4Q 2007.

HOWEVER, ECONOMISTS DO NOT BELIEVE THE STRONG PERFORMANCE SIGNIFIES AN UPTREND FOR THE REST OF THE YEAR. THEY POINT TO A POTENTIAL RECESSION IN THE UNITED STATES AND RISING GLOBAL INFLATION.

MANUFACTURING AND SERVICES WERE CONTRIBUTORS TO THE BETTER-THAN-EXPECTED FIRST QUARTER GROWTH.

MANUFACTURING IS ESTIMATED TO HAVE EXPANDED BY 13.2% IN THE FIRST QUARTER, COMPARED TO A SMAL 0.2% RISE IN THE PREVIOUS THREE MONTHS. IT WAS ALSO CONSIDERABLY HIGHER THAN THE 3.9% REGISTERED IN 1Q 2007.

THIS WAS LARGELY DUE TO A SURGE IN BIOMEDICAL MANUFACTURING OUTPUT. THE REST OF THE MANUFACTURING CLUSTERS ALSO ENJOYED BETTER PERFORMANCES

WITH THE EXCEPTION OF TRANSPORT ENGINEERING AND PRECISION ENGINEERING CLUSTER WHO ENJOY MODERATE GROWTH.

SERVICES INDUSTRIES GROW 7.6%, SIMILAR TO THE 7.7% IN 4Q 2007 AS WELL AS IN 1Q 2007. FINANCIAL SERVICES CONTINUED TO BE THE FASTEST-GROWING AMONG THE SERVICES SECTORS.

HOWEVER, THE FIGURE FOR THE SLOWING CONSTRUCTION SECTOR WAS LESS ROSY WITH GROWTH SLIPPING TO 14.6% FROM 24.3% IN 4Q 2007.

UNITED OVERSEAS BANK ECONOMIST HO WOEI CHEN SAID THIS WAS DISAPPOINTING,

AFTER THREE QUARTERS OF GROWTH ABOVE 20.0%. BUT SHE STILL EXPECTED THE SECTOR TO CONTRIBUTE TO GROWTH THIS YEAR, ON THE BACK OF INFRASTRCTURE PROJECTS SUCH AS THE INTEGRATED RESORTS AND THE PROPOSED SPORTS HUB IN KALLANG.

ECONOMISTS WERE SURPRISED BY WHAT THEY SAID AMOUNTED TO A CONTRACTION IN THE INDUSTRY BUT THEY REMAINED CONFIDENT THAT GROWTH WAS STILL HEALTHY AND IN LINE WITH THEIR FORECASTS FOR THE YEAR, WHICH RANGED FROM 10.0%

TO 25.0%.

CIMG-GK ECONOMIST SOGN SENG WUN SAID THAT RISING INFLATION, ESPECIALLY FOR FOOD PRICES, WILL BE A MAJOR CONCERN. “PEOPLE ARE FOCUSING ON ISSUES SUCH AS THE RISING PRICE OF RICE AND THIS IS SOMETHING THAT COULD PERSIST FOR THE REST OF THE YEAR”.

NONE OF THE ECONOMISTS INTERVIEWED REVISE FULL-YEAR GROWTH FORECASTS WHICH RANGE FROM 4.7% TO 5.5%. MTI HAS FORECAST A RANGE OF 4.0% TO 6.0% FOR THE YEAR.

OUTLOOK

AFTER THE LAST REVIEW IN NOVEMBER 2007, THE OUTLOOK FOR EXTERNAL DEMAND IN 2008 HAS WORSENED AND THERE ARE INCREASED DOWNSIDE RISKS.

COMPARED TO THE FORECAST THREE MONTHS AGO, THERE IS BROAD CONSENSUS NOW THAT THE US ECONOMY IS ENTERING A SLOWDOWN. THE LENGTH AND SEVERITY OF THE SLOWDOWN REMAINS TO BE SEEN, AND IT WILL AFFECT COUNTRIES WORLDWIDE AND KEY INDUSTRIES.

TAKING INTO ACCOUNT THE RISE IN DOWNSIDE RISKS, THE MINISTRY OF TRADE AND INDUSTRY LOWERED THE ECONOMIC FORECAST FOR THE SINGAPORE ECONOMY TO GROW BY 4.0-6.0% IN 2008, DOWN FROM THE GROWTH FORECAST OF 4.5-6.5% EARLIER.

CURRENT CONDITIONS INDICATE THAT THE US ECONOMY WILL LIKELY ENTER A MILD RECESSION IN THE FIRST HALF BUT ITS STRONG FUNDAMENTALS, COUPLED WITH FISCAL AND MONETARY STIMULUS, WILL ASSIST TO SUPPORT RECOVERY IN THE SECOND HALF. REGIONAL ECONOMIES WILL HAVE MODERATE BUT HEALTHY GROWTH. SINGAPORE’S GDP GROWTH WILL THEN BE IN THE UPPER HALF OF THE FORECAST RANGE. HOWEVER, IF THE US FALLS INTO A MORE SEVERE RECESSION, THE REGION WILL BE MORE SIGNIFICANTLY AFFECTED. THE IMPACT ON THE SINGAPORE ECONOMY WILL ALSO BE STRONGER, PARTICULARLY IN THE SENTIMENT-SENSITIVE AND EXPORT-ORIENTED SECTORS LIKE FINANCIAL SERVICES, WHOLESALE TRADE AND ELECTRONICS. IN THIS ENVIRONMENT, THE SINGAPORE ECONOMY WILL GROW AT A SLOWER PACE, NEARER THE LOWER END OF THE FORECAST RANGE.

IN THE FINANCIAL SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 19% OF FIRMS, ESPECIALLY INSURANCE COMPANIES AND FIRMS PROVIDING CREDIT CARD SERVICES, REMAINS POSITIVE ABOUT THE BUSINESS OUTLOOK IN THE MONTHS AHEAD.

IN THE REAL ESTATE INDUSTRY, A NET WEIGHTED BALANCE OF 17% OF FIRMS,

EXPECT BUSINESS TO BE BRISK FOR THE COMING MONTHS.

MANUFACTURING FIRMS ARE CAUTIOUS ABOUT BUSINESS CONDITIONS FOR THE PERIOD ENDING JUNE 2008. A NET WEIGHTED BALANCE OF 2% OF MANUFACTURERS FORECAST BETTER BUSINESS, LOWER THAN THE 7% REGISTERED IN THE SAME PERIOD LAST YEAR AND THE 25% RECORDED IN THE PREVIOUS QUARTER.

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 4% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THE MAJORITY OF WHOLESALERS OF PETROLEUM AND PETROLEUM PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS, INDUSTRIAL MACHINERY AND EQUIPMENT AND COMPUTERS AND ACCESSORIES FORECAST BUSINESS OUTLOOK TO REMAIN THE SAME IN THE FIRST SIX MONTHS OF 2008 COMPARED WITH THE LAST SIX MONTHS IN 2007.

A NET WEIGHTED BALANCE OF 12% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING JUNE 2008. AS A RESULT OF THE REDUCED CERTIFICATE OF ENTITLEMENT (COE) QUOTA, MOTOR VEHICLES RETAILERS ARE ESPECIALLY CONCERNED WITH THE SALES.

IN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 5% OF FIRMS FORECASTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE COMING MONTHS.

IN THE SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 8% OF FIRMS,

EXPECT BUSINESS TO BE BRISK FOR THE COMING MONTHS. THIS IS SMALLER THAN THE 18% REGISTERED IN THE SAME PERIOD LAST YEAR AND THE 23% RECORDED IN THE PREVIOUS QUARTER. HOTELIERS REMAIN BULLISH ON BUSINESS CONDITIONS FOR THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 35% OF HOTELIERS EXPECTING THEIR BUSINESSES TO RISE IN ANTICIPATION OF EXPECTED INCREASES IN ROOM RATES AND HIGHER OCCUPANCY RATES. IN THE CATERING TRADE INDUSTRY, A NET WEIGHTED BALANCE OF 27% OF CATERERS ANTICIPATES MORE FAVOURABLE BUSINESS CONDITIONS.

IN THE INFORMATION AND COMMUNICATIONS INDUSTRY, A NET WEIGHTED BALANCE OF 9% OF FIRMS PREDICTS A HIGHER DEMAND FOR THEIR SERVICES, IN PARTICULAR THE NETWORK OPERATORS.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 19% OF FIRMS EXPECTS POSITIVE SENTIMENTS. THESE INCLUDE ACCOUNTING, BOOK-KEEPING AND AUDITING, RENTING OF CONSTRUCTION AND INDUSTRIAL MACHINERY AND RENTING OF TRANSPORT EQUIPMENT.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

THE STRAITS TIMES

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.43.37
UK Pound	1	Rs.85.51
Euro	1	Rs.68.08

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

MIRA INFORM REPORT

Subject Company

Line Of Business

Parent Company

Financial Elements

FY 2007

COMPANY IDENTIFICATION

SUMMARY

REFERENCES

PRINCIPAL(S)

DIRECTOR(S)

FORMER DIRECTOR(S)

ACTIVITY(IES)

CHARGES

PREMISES/PROPERTY INFORMATIONS

BANKERS

SHAREHOLDERS(S)

FORMER SHAREHOLDER(S)

SUBSIDIARY(IES)

PAYMENT HISTORY AND EXPERIENCES

LITIGATION(S)

FINANCIAL ELEMENTS

FINANCIAL COMMENTS

MANAGEMENT

Singapore’s Country Rating 2007

Unit