MIRA INFORM REPORT

Report Date :

23.07.2008

IDENTIFICATION DETAILS

Name :	AGILENT TECHNOLOGIES SINGAPORE (SALES) PTE LTD^.
Registered Office :	^1 YISHUN AVENUE 7 ^038989
Country :	Singapore
Financials (as on) :	31.10.2006
Date of Incorporation :	^13.08.1999
Com. Reg. No.:	^199904761K
Legal Form :	^Exempt Pte Ltd
Line of Business :	^Distributing Semiconductor Products and Electronic Equipment for Measurement and Chemical Analysis Produced by Agilent Technologies Group of Companies as well as Other Services such as System Integration, Maintenance and Training

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 :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

AGILENT TECHNOLOGIES SINGAPORE (SALES) PTE LTD

Line Of Business 

^{DISTRIBUTING SEMICONDUCTOR PRODUCTS AND ELECTRONIC EQUIPMENT FOR}

^{MEASUREMENT AND CHEMICAL ANALYSIS PRODUCED BY AGILENT}

^{TECHNOLOGIES GROUP OF COMPANIES AS WELL AS OTHER SERVICES SUCH}

^{AS SYSTEM INTEGRATION, MAINTENANCE AND TRAINING.}

Parent Company

^{AGILENT TECHNOLOGIES EUROPE B.V.}

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : US$956,379,000

Networth : US$104,662,000

Paid-Up Capital : US$ 4,721,000

Net result : US$ 14,166,000

Net Margin(%) : 1.48

Return on Equity(%) :13.53

Leverage Ratio : 2.74

COMPANY IDENTIFICATION

^{Subject Company : AGILENT TECHNOLOGIES SINGAPORE (SALES) PTE LTD}

^{Former Name : -}

^{Business Address: 1 YISHUN AVENUE 7}

^{Town : SINGAPORE}

^{Postcode : 038989}

^{County :}

^{Country : Singapore}

^{Telephone : 6377 1688}

^{Fax : 6270 8372}

^{ROC Number : 199904761K}

^{Reg. Town :}

SUMMARY

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

^{Legal Form : Exempt Pte Ltd}

^{Date Inc. : 13/08/1999}

^{Previous Legal Form : -}

^{Summary year : 31/10/2006}

^{Sales : 956,379,000}

^{Networth : 104,662,000}

^{Capital : 2,000,000}

^{Paid-Up Capital : 4,721,000}

^{Employees : 609}

^{Net result : 14,166,000}

^{Share value : -}

^{Auditor : PRICEWATERHOUSECOOPERS}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 2,507,440 SGD 103,724,999.97}

^{PAID-UP ORDINARY - SGD 103,724,999.97}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 13/08/1999}

PRINCIPAL(S)

^{YANG ENG HUAT S1745013A Director}

DIRECTOR(S)

^{YANG ENG HUAT S1745013A Director}

^{Appointed on : 09/02/2004}

^{Street : 119 MARSILING RISE}

^#06-132

^{Town: SINGAPORE}

^{Postcode: 730119}

^{Country: Singapore}

^{GOOI SOON CHAI 610601-07- Director}

^{Appointed on : 05/10/2005}

^{Street : 2 HALAMAN CANTONMENT}

^{Town: PULAU PINANG}

^{Postcode: 10350}

^{Country: Malaysia}

^{CATHERINE DOROTHY HANAM S1521083D Company Secretary}

^{Appointed on : 27/03/2000}

^{Street : 9 TEMASEK BOULEVARD}

^#09-03

^{SUNTEC CITY TOWER 2}

^{Town: SINGAPORE}

^{Postcode: 038989}

^{Country: Singapore}

^{TAN LI HUANG MARY LYNNE S1654258Z Company Secretary}

^{Appointed on : 27/03/2000}

^{Street : 50 GOLDHILL AVENUE}

^#01-02

^{MOUNT ROSIE GARDEN}

^{Town: SINGAPORE}

^{Postcode: 309031}

^{Country: Singapore}

^{CHEUNG KAM MAN S2683386H Director}

^{Appointed on : 24/08/2005}

^{Street : 370C ALEXANDRA ROAD}

^#04-02

^{ANCHORAGE CONDOMINIUM}

^{Town: SINGAPORE}

^{Postcode: 159956}

^{Country: Singapore}

^{ROBIN JAY YOUNG BA298773 Director}

^{Appointed on : 15/11/2000}

^{Street : 25 HOLLAND HILL}

^#09-02

^{HOLLAND PEAK}

^{Town: SINGAPORE}

^{Postcode: 278740}

^{Country: Singapore}

^{CHEE ENG CHUAN CHARLES S0035099J Director}

^{Appointed on : 03/08/2007}

^{Street : 22 WILBY ROAD}

^#01-17

^{THE TESSARINA}

^{Town: SINGAPORE}

^{Postcode: 276306}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{WEE ENG LOK DARRYL S6839349C}

ACTIVITY(IES)

^{SEMICONDUCTOR DEVICES Code:19130}

^{ELECTRONIC EQUIPMENT And SUPPLIES - WHSLE And MFRS Code:7640}

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

CHARGES

^{Date: 08/08/2003}

^{Comments : CHARGE NO: C200303857}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): OVERSEA-CHINESE BANKING CORPORATION LIMITED}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{OVERSEA-CHINESE BANKING CORPORATION LIMITED}

SHAREHOLDERS(S)

^{AGILENT TECHNOLOGIES EUROPE B.V. 2,507,440 Company}

^{Street : STARTBAAN 16,}

^{1187 XR AMSTELVEEN}

^Town:

^Postcode:

^{Country: Netherlands}

HOLDING COMPANY

^{AGILENT TECHNOLOGIES EUROPE B.V. UF25041Z % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

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

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN) Date Account Lodged: 19/09/2007}

^{Balance Sheet Date: 31/10/2006 31/10/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 2,722,000 4,541,000}

^{Total Fixed Assets: 2,722,000 4,541,000}

^{Inventories: 51,454,000 66,330,000}

^{Receivables: 332,787,000 488,895,000}

^{Cash,Banks, Securitis: 3,239,000 10,913,000}

^{Other current assets: 741,000 1,797,000}

^{Total Current Assets: 388,221,000 567,935,000}

^{TOTAL ASSETS: 390,943,000 572,476,000}

^{--- LIABILITIES ---}

^{Equity capital: 4,721,000 4,721,000}

^{Profit & lost Account: 99,941,000 75,396,000}

^{Surplus equity:}

^{Total Equity: 104,662,000 80,117,000}

^{L/T deffered taxes: 478,000 608,000}

^{Other long term Liab.: 25,618,000 28,138,000}

^{Total L/T Liabilities: 26,096,000 28,746,000}

^{Trade Creditors: 255,619,000 460,402,000}

^{Prepay. & Def. charges:}

^{Advanced payments:}

^{Provisions: 4,566,000 3,211,000}

^{Other Short term Liab.:}

^{Total short term Liab.: 260,185,000 463,613,000}

^{TOTAL LIABILITIES: 286,281,000 492,359,000}

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

^{Net Sales 956,379,000 889,856,000}

^{Purchases,Sces & Other Goods: 799,033,000 752,057,000}

^{Gross Profit: 157,346,000 137,799,000}

^{Result of ordinary operations}

^{NET RESULT BEFORE TAX: 18,772,000 11,520,000}

^{Tax : 4,606,000 1,776,000}

^{Net income/loss year: 14,166,000 9,744,000}

^{Interest Paid: 348,000}

^{Depreciation: 1,535,000 1,960,000}

^Dividends:

^{Directors Emoluments: Wages and Salaries: Financial Income: 10,496,000 3,138,000}

RATIOS

^{31/10/2006 31/10/2005 Turnover per employee: 1570408.87 1461175.70 Net result / Turnover(%): 0.01 0.01 Stock / Turnover(%): 0.05 0.07 Net Margin(%): 1.48 1.10 Return on Equity(%): 13.53 12.16 Return on Assets(%): 3.62 1.70 Net Working capital: 128036000.00 104322000.00 Cash Ratio: 0.01 0.02 Quick Ratio: 1.29 1.08 Current ratio: 1.49 1.23 Receivables Turnover: 125.27 197.79 Leverage Ratio: 2.74 6.15}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

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

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

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

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

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

^{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 30.64% FROM USD80,117,000 IN 2005 TO USD104,662,000 IN 2006.}

^{THIS WAS DUE TO HIGHER RETAINED EARNINGS OF USD99,941,000 (2005: USD75,396,000); A RISE OF 32.55% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 98.25% (2005: 99.31%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO USD255,619,000 (2005: USD460,402,000).}

^{OVERALL, THE LEVERAGE RATIO HAD IMPROVED TO 2.74 TIMES (2005: 6.15 TIMES), INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS}

^{SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 22.73% TO USD128,036,000 (2005: USD104,322,000).}

^{BOTH THE QUICK AND CURRENT RATIOS POSTED HIGHER AND WERE SUFFICIENT AT 1.29 TIMES (2005: 1.08 TIMES) AND 1.49 TIMES (2005: 1.230 TIMES), RESPECTIVELY.}

^{HOWEVER, CASH AND CASH EQUIVALENTS FELL BY 70.32% TO USD3,239,000 (2005: USD10,913,000).}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 7.48% FROM USD889,856,000 IN 2005 TO USD956,379,000. SIMILARLY, NET PROFIT ROSE BY 45.38% TO USD14,166,000 (2005: USD9,744,000). THIS COULD BE DUE TO HIGHER GROSS MARGIN OF 16.45% IN 2006 (2005: 15.49%). HENCE, NET MARGIN ROSE TO 1.48% (2005: 1.10%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS SHORTHENED TO 125 DAYS (2005: 198 DAYS).}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 13/08/1999 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "AGILENT TECHNOLOGIES SINGAPORE (SALES) PTE LTD".}

^{THE COMPANY HAS A ISSUED AND PAID-UP CAPITAL OF 2,507,440 SHARES OF A VALUE OF S$103,724,999.97.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

^{THE COMPANY WAS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: IMPORTERS & EXPORTERS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES CONSIST OF DISTRIBUTING SEMICONDUCTOR PRODUCTS AND ELECTRONIC EQUIPMENT FOR MEASUREMENT AND CHEMICAL ANALYSIS PRODUCED BY AGILENT TECHNOLOGIES GROUP OF COMPANIES AS WELL AS OTHER SERVICES SUCH AS SYSTEM INTEGRATION, MAINTENANCE AND TRAINING.}

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

^ACTIVITIES:

^{* SUBJECT PROVIDES REPAIR AND CALIBRATION OF TEST AND MEASUREMENT}

^{PRODUCTS, TRAINING AND EDUCATION, CONSULTING ON TEST AND}

^{MEASUREMENT PRODUCTS.}

^{PRODUCTS/SERVICES:}

^{INSTRUMENTS & SYSTEMS:}

^{* CAPILLARY ELECTROPHORESIS}

^{* DNA MICROARRAYS}

^{* GAS CHROMATOGRAPHY}

^{* ICP-MS}

^{* LAB-ON-A-CHIP PRODUCTS}

^{* LIQUID CHROMATOGRAPHY}

^{* MASS SPECTROMETRY}

^{* UV-VISIBLE SPECTROSCOPY}

^{CONSUMABLES & PARTS:}

^{* COLUMNS-GENERAL CHROMATOGRAPHY}

^{* INSTRUMENT PARTS & SUPPLIES}

^{* AGILENT REAGENT KITS, BUFFERS AND STANDARDS}

^{* SAMPLE PREPARATION}

^{INFORMATICS & SOFTWARE:}

^{* ANALYTICAL WORKSTATIONS}

^{* CHROMATOGRAPHIC DATA SYSTEMS}

^{* CONTENT MANAGEMENT}

^{* LAB INFORMATICS FRAMEWORK}

^{* LAB INFORMATICS MANAGEMENT}

^{* LIFE SCIENCES INFORMATICS}

^{SUBJECT IS A MEMEBR OF THE FOLLOWING ENTITY:}

^{* SINGAPORE INTERNATIONAL CHAMBER OF COMMERCE}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED}

^{THE COMPANY'S IMMEDIATE HOLDING CORPORATION IS AGILENT TECHNOLGY EUROPE B.V, INCORPORATED IN THE NETHERLANDS. THE ULTIMATE HOLDING COMPANY IS AGILENT TECHNOLGIES INC, INCORPORATED IN THE UNITED STATES OF AMERCIA.}

^{NUMBER OF EMPLOYEES (31 OCTOBER):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: 609; 2004: 704; 2003: 745)}

^{REGISTERED ADDRESS:}

^{9 TEMASEK BOULEVARD}

^#09-03

^{SUNTEC CITY TOWER 2}

^{SINGAPORE 038989}

^{DATE OF CHANGE OF ADDRESS: 01/10/2000}

^{- RENTED PREMISE}

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

^{LIMITED AS TRUSTEE OF SUNTEC REIT}

^{BUSINESS ADDRESS:}

^{1 YISHUN AVENUE 7}

^{SINGAPORE 768923}

^{- PREMISED OWNED BY: AGILENT TECHNOLOGIES SINGAPORE PTE LTD}

^{WEBSITE: www.agilent.com/chem/sg}

^{EMAIL : jennifer-gm_ng@agilent.com}

MANAGEMENT

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

^{1) GOOI SOON CHAI, A MALAYSIAN}

^{- BASED IN MALAYSIA.}

^{2) ROBIN JAY YOUNG, A CANADIAN}

^{- BASED IN SINGAPORE.}

^{3) CHEE ENG CHUAN CHARLES, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

^{4) YANG ENG HUAT, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABSAE:}

^{AGILENT TECHNOLOGIES SINGAPORE (HOLDINGS) PTE. LTD.}

^{5) CHEUNG KAM MAN, A SINGAPOREN 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 6.0% IN 4Q 2007, SLOWER THAN THE 6.8% GROWTH IN 3Q 2007. RETAIL SALES FELL BY 2.5%, FOLLOWING A 1.5% GROWTH IN 3Q 2007.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 22.2% IN 4Q 2007 OVER 4Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 4.8%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF PETROLEUM AND PETROLEUM PRODUCTS (47.3%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (29.8%). OTHER WHOLESALE SEGMENTS THAT REPORTED DOUBLE-DIGIT GROWTH WERE WHOLESALING OF GENERAL WHOLESALE TRADE, HOUSEHOLD EQUIPMENT AND FURNITURE AND CHEMICALS AND CHEMICAL PRODUCTS.

ON THE OTHER HAND, WHOLESALE SEGMENT THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-35.8%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 1.6% IN 4Q 2007 OVER 4Q 2006. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE SLIGHTLY BY 0.2%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 4Q 2007 ROSE BY 7.1% OVER 3Q 2007. EXCLUDING PETROLEUM, DOMESTIC SALES CONTRACTED BY 2.9%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 4Q 2007 OVER PREVIOUS QUARTER. PETROLEUM AND PETROLEUM PRODUCTS EXPANDED BY 20.0%. GENERAL WHOLESALE TRADE AND INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO REGISTERED

DOUBLE-DIGIT GROWTH OVER PREVIOUS QUARTER.

ON THE OTHER HAND, SALES OF FOOD, BEVERAGES AND TOBACCO AND ELECTRONIC COMPONENTS FELL IN 4Q 2007 OVER 3Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 4Q 2007 ROSE BY 27.0%, IN COMPARISON TO 4Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 15.3%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (40.6%) PETROLEUM AND PETROLEUM PRODUCTS (39.9%) SHIP CHANDLERS AND BUNKERING (24.3%) INDUSTRIAL AND CONSTRUCTION MACHINERY (18.2%) CHEMICALS AND CHEMICAL PRODUCTS (16.4%) ELECTRONIC COMPONENTS (12.1%) TIMBER, PAINT AND CONSTRUCTION MATERIALS (11.1%).

ON THE OTHER HAND, OVERSEAS SALES OF TELECOMMUNICATIONS AND COMPUTERS FELL BY 2.8%

IN 4Q 2007 OVER 4Q 2006.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 11.5% IN 4Q 2007 OVER 4Q 2006.

EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 15.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 4Q 2007 ROSE BY 11.7% OVER 3Q 2007. EXCLUDING PETROLEUM, IT GREW BY 6.0%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 4Q 2007 WITH THE EXCEPTION OF THE ELECTRONIC COMPONENTS SECTOR. THOSE SECTORS THAT REGISTERED DOUBLE-DIGIT GROWTH WERE WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS, TELECOMMUNICATIONS AND COMPUTERS, INDUSTRIAL AND CONSTRUCTION MACHINERY AND CHEMICALS AND CHEMICAL PRODUCTS.

RETAIL TRADE

THE OVERALL RETAIL SALES CONTRACTED BY 2.5%, IN CONTRAST TO THE 1.5% GROWTH IN 3Q 2007. THE SECTOR THAT RECORDED THE LARGEST DECLINE WERE MOTOR VEHICLES, FOLLOWED BY PROVISION AND SUNDRY SHOPS, FOOD AND BEVERAGES, WATCHES AND JEWELLERY AND MEDICAL GOODS AND TOILETRIES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.2%, A DECLINE FROM THE 6.O% GROWTH IN 3Q 2007.

NEWS

SURPRISING DROP IN RETAIL SALES

RETAIL SALES FELL UNEXPECTEDLY IN FEBRUARY, THE FIRST TIME IN SEVEN MONTHS, AS INFLATION HIT 26 YEAR HIGHS AND WORRIES GREW ABOUT THE WORLD ECONOMY. SHOPS, SUPERMARKETS AND OTHER RETAILERS SAW REVENUES FELL 1.3% FROM A YEAR EARLIER, AS CAR SALES DECLINED 10.6% AND FOOD AND BEVERAGES SALES PLUNGED 21.8%.

THE OVERALL CONTRACTION BY THE SECTOR WOULD HAVE BEEN BIGGER IF NOT FOR MUCH HIGHER PRICES THIS YEAR. IN CONSTANT PRICES TERMS, SALES FELL 5.7%. THIS IS THE WORST READING SINCE THE 5.0% DECLINE IN MARCH 2007, IF ONE WERE TO IGNORE THE 2.0% CONTRACTION IN JULY THAT WAS DUE TO THE HIKE IN THE GOODS AND SERVICES TAX,” SAID HSBC ECONOMIST PRAKRITI SOFAT.

ANALYSTS SAID RISING LIVING COSTS AND UNCERTAINTY ABOUT THE ECONOMY WOULD AFFECT SINGAPORE CONSUMER’S SPENDING THIS YEAR. MANY, HOWEVER, REMAIN LARGELY OPTIMISTIC ABOUT THE DOMESTIC RETAIL SCENE, SAYING THE POOR FEBRUARY SHOWING COULD BE A STATISTICAL BLIP.

DOMESTIC DEMAND CONDITIONS REMAIN POSITIVE, HELPED BY THE GOVERNMENT WHICH IS GIVING CASH FROM LAST YEAR’S SURPLUS TO THE WHOLE POPULATION AND ISSUING FOOD VOUCHERS TO THE POOR. “LOW INTEREST RATES AND A HEALHY JOBS MARKET SHOULD KEEP SPENDING FIRM,” SAID HSBC’S MS SOFAT. SHE ADDED THAT FEBRUARY’S DECLINE WAS DUE LARGELY TO A HIGH BASE SET THE PREVIOUS YEAR AND PREDICTED THAT MARCH SALES WOULD BOUNCE BACK WITH A 15.0% SURGE. ALSO, IF COMPARED WITH JANUARY, FEBRUARY SALES ROSE 8.8% AFTER ADJUSTING FOR SEASONAL EFFECTS. THIS WAS THE STRONGEST PERFORMANCE IN FOUR YEARS, SHE SAID.

CIMB-GK ECONOMIST SONG SENG WUN SAID MUCH OF THE POOR PERFORMANCE CAME ON THE BACK OF WEAKER CAR SALES. EXCLUDING THOSE, RETAIL SALES WOULD HAVE RISEN 2.9%. CAR SALES HAVE BEEN HURT SINCE OCTOBER BY RISING CERTIFICATE OF ENTITLEMENT PRICES, CAUSED BY AN EXPECTED CUT IN QUOTAS FROM NEXT MONTH AND SURGING PUMP PRICES.

OUTLOOK

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.

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.41.96
UK Pound	1	Rs.83.78
Euro	1	Rs.65.82

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