MIRA INFORM REPORT

Report Date :

29.07.2008

IDENTIFICATION DETAILS

Name :	OLAM INTERNATIONAL LIMITED
Registered Office :	^9 Temasek Boulevard ^#11-02 ^Suntec Tower 2
Country :	Singapore
Financials (as on) :	30.06.2007
Date of Incorporation :	^04.07.1995
Com. Reg. No.:	^199504676H
Legal Form :	^Public Limited Company
Line of Business :	Sourcing, Processing and Trading of Agri Commodities

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

OLAM INTERNATIONAL LIMITED

Line Of Business 

SOURCING, PROCESSING AND TRADING OF AGRI COMMODITIES

Parent Company

-

Financial Elements

FY 2007

GROUP

Sales : S$ 5,455,508,000

Networth : S$ 432,749,000

Paid-Up Capital : S$ 397,730,000

Net result : S$ 109,021,000

Net Margin(%) : 2.00

Return on Equity(%) : 25.19

Leverage Ratio : 8.16

COMPANY IDENTIFICATION

^{Subject Company : OLAM INTERNATIONAL LIMITED}

^{Former Name : -}

^{Business Address : 9 TEMASEK BOULEVARD}

^#11-02

^{SUNTEC TOWER 2}

^{Town : SINGAPORE}

^{Postcode : 038989}

^{Country : Singapore}

^{Telephone : 6339 4100}

^{Fax : 6339 9755}

^{ROC Number : 199504676H}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pub Ltd Co}

^{Date Inc. : 04/07/1995}

^{Previous Legal Form : -}

^{Summary year : 30/06/2007}

^{Sales :5,455,508,000}

^{Networth : 432,749,000}

^{Capital : -}

^{Paid-Up Capital : 397,730,000}

^{Employees : -}

^{Net result : 109,021,000}

^{Share value : -}

^{Auditor : ERNST & YOUNG}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 1,712,083,080 SGD 706,386,306.71}

^{PAID-UP ORDINARY - SGD 706,386,306.71}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 04/07/1995}

PRINCIPAL(S)

^{SUNNY GEORGE VERGHESE F2486047R Managing Director}

DIRECTOR(S)

^{RANGAREDDY JAYACHANDRAN S2220352E Director}

^{Appointed on : 04/07/1995}

^{Street : 32 NASSIM HILL}

^#02-34

^{NASSIM MANSION}

^{Town: SINGAPORE}

^{Postcode: 258472}

^{Country: Singapore}

^{NARAIN GIRDHAR CHANRAI S2584555B Director}

^{Appointed on : 04/07/1995}

^{Street : 28 LEONIE HILL}

^#04-30

^{LEONIE TOWERS}

^{Town: SINGAPORE}

^{Postcode: 239227}

^{Country: Singapore}

^{SUNNY GEORGE VERGHESE F2486047R Managing Director}

^{Appointed on : 11/07/1996}

^{Street : 61 GRANGE ROAD}

^#14-04

^{BERVERLY HILL APARTMENTS}

^{Town: SINGAPORE}

^{Postcode: 249570}

^{Country: Singapore}

^{SRIDHAR KRISHNAN S2672503H Director}

^{Appointed on : 01/04/1998}

^{Street : 22 WILBY ROAD}

^#09-17

^{THE TESSARINA}

^{Town: SINGAPORE}

^{Postcode: 276306}

^{Country: Singapore}

^{SHEKHAR ANANTHARAMAN S2675139Z Director}

^{Appointed on : 01/04/1998}

^{Street : 3 TANJONG RHU ROAD}

^#04-01

^{THE WATERSIDE}

^{Town: SINGAPORE}

^{Postcode: 436881}

^{Country: Singapore}

^{TSE PO SHING ANDY KJ0016589 Director}

^{Appointed on : 12/09/2002}

^{Street : 11/F, BLOCK 42, BAGUIO VILLAS}

^{550 VICTORIA ROAD}

^POKFULAM

^{Town: HONG KONG}

^Postcode:

^{Country: Hong Kong}

^{PETER FRANCES AMOUR E1016034 Director}

^{Appointed on : 02/09/2004}

^{Street : HOUSE A-18, BURNSIDE VILLA}

^{9 SOUTH BAY ROAD}

^{Town: HONG KONG}

^Postcode:

^{Country: Hong Kong}

^{SUNNY GEORGE VERGHESE F2486047R Director}

^{Appointed on : 11/07/1996}

^{Street : 61 GRANGE ROAD}

^#14-04

^{BERVERLY HILL APARTMENTS}

^{Town: SINGAPORE}

^{Postcode: 249570}

^{Country: Singapore}

^{MARK HAYNES DANIELL S2728135D Director}

^{Appointed on : 31/10/2002}

^{Street : 10 CUSCADEN WALK}

^#26-02

^{Town: SINGAPORE}

^{Postcode: 249693}

^{Country: Singapore}

^{WONG HENG TEW S0207348Z Director}

^{Appointed on : 10/10/2003}

^{Street : 79 HIGHGATE CRESCENT}

^{Town: SINGAPORE}

^{Postcode: 598857}

^{Country: Singapore}

^{LIM SHEAU MING S2562041J Alternate Director}

^{Appointed on : 10/11/2004}

^{Street : 300 TANJONG KATONG ROAD}

^#01-07

^{CHELSEA LODGE}

^{Town: SINGAPORE}

^{Postcode: 437083}

^{Country: Singapore}

^{LIM CHOO SAN MICHAEL S2539208F Director}

^{Appointed on : 24/09/2004}

^{Street : 11 CALDECOTT CLOSE}

^{CALDECOTT HILL ESTATE}

^{Town: SINGAPORE}

^{Postcode: 299120}

^{Country: Singapore}

^{ROBERT MICHAEL TOMLIN S2624570B Director}

^{Appointed on : 24/09/2004}

^{Street : 22 SAUNDERS ROAD}

^{Town: SINGAPORE}

^{Postcode: 228266}

^{Country: Singapore}

^{SOPHIA LIM SIEW FAY S2664520D Company Secretary}

^{Appointed on : 12/08/2005}

^{Street : 806 BEDOK RESERVOIR ROAD}

^#14-04

^BAYWATER

^{Town: SINGAPORE}

^{Postcode: 479243}

^{Country: Singapore}

^{FRANK PHILIP HARLEY 761054576 Alternate Director}

^{Appointed on : 10/05/2006}

^{Street : 36B, BELLA VISTA}

^{3 YING FAI TERRACE}

^CENTRAL

^{Town: HONG KONG}

^Postcode:

^{Country: Hong Kong}

^{WAN TIEW LENG LYNN S1306315Z Company Secretary}

^{Appointed on : 10/09/2007}

^{Street : 32 LORONG MYDIN}

^#14-06

^{ASTORIA PARK}

^{Town: SINGAPORE}

^{Postcode: 416826}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{HELEN CAMPOS THOMAS S1318008C}

^{MURLI KEWALRAM CHANRAI S2609815G}

^{LOCK YOKE KUAN S1526778Z}

^{BRUCE CARROLL ALLEN 700715610}

^{HUI SHEUNG YIN DANIEL 790006238}

^{KRISHNASAMY RAVENDRAN S0028856Z}

^{HSIA PIH YOONG MAGDALENE S6817229B}

^{CHUA SUI CHOO ANNE S1239655D}

^{TAN SAN-JU S1495769C}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code: 11760}

^{COMMISSION MERCHANTS Code: 4990}

^{COMMODITY TRADERS Code: 5010}

^{AGRICULTURAL MARKETING Code: 370}

^{BASED ON ACRA'S RECORD}

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

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

CHARGES

^{Comments : CHARGE NO : C200401419 (DISCHARGED - 05/05/2004)}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE(S) : PT BANK CENTRAL ASIA TBK}

^{Comments : CHARGE NO : C200406297 (DISCHARGED - 07/01/2005)}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE(S) : STANDARD CHARTERED BANK}

^{Date : 15/05/1998}

^{Comments : CHARGE NO : 199802444/199802443 (DISCHARGED - 28/09/1998)}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE(S) : BHF-BANK AKTIENGSELLSCHAFT}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{STANDARD CHARTERED BANK}

^{DBS BANK LTD.}

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED}

^{BNP PARIBAS (SUISSE) SA}

^{ABN AMRO BANK N.V.}

^{DEUTSCHE BANK AKTIENGESELLSCHAFT}

^{NATEXIS BANQUES POPULAIRES}

^{OVERSEA-CHINESE BANKING CORPORATION LIMITED}

^{RABOBANK INTERNATIONAL}

SHAREHOLDERS(S)

^{KEWRALAM SINGAPORE LIMITED 397,634,877 Company}

^{Street : 65 CHULIA STREET}

^#49-01

^{OCBC CENTRE}

^{Town: SINGAPORE}

^{Postcode: 049513}

^{Country: Singapore}

^{SRIDHAR KRISHNAN 9,578,790 Private Person}

^{Street : 22 WILBY ROAD}

^#09-17

^{THE TESSARINA}

^{Town: SINGAPORE}

^{Postcode: 276306}

^{Country: Singapore}

^{SUNNY GEORGE VERGHESE 79,022,630 Private Person}

^{Street : 61 GRANGE ROAD}

^#14-04

^{BERVERLY HILL APARTMENTS}

^{Town: SINGAPORE}

^{Postcode: 249570}

^{Country: Singapore}

^{RAFFLES NOMINEES PTE LTD 66,831,368 Company}

^{Street : -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{MERRILL LYNCH (S'PORE) PTE LTD 79,561,392 Company}

^{Street : -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{DBS NOMINEES (PRIVATE) LIMITED 306,499,986 Company}

^{Street : 6 SHENTON WAY}

^{DBS BUILDING}

^{Town: SINGAPORE}

^{Postcode: 068809}

^{Country: Singapore}

^{HSBC (SINGAPORE) NOMINEES PTE LTD 84,654,849 Company}

^{Street : -}

^{Town: SINGAPORE}

^{Postcode: -}

^{Country: Singapore}

^{CITIBANK NOMINEES SINGAPORE PTE LTD 123,794,951 Company}

^{Street : -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{MORGAN STANLEY ASIA (SINGAPORE) PTE 13,427,583 Company}

^{Street : -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{UNITED OVERSEAS BANK NOMINEES [PTE] 14,873,168 Company}

^{Street : 1 BONHAM STREET}

^#15-00

^{U O B BUILDING}

^{Town: SINGAPORE}

^{Postcode: 049782}

^{Country: Singapore}

^{UOB KAY HIAN PRIVATE LIMITED 60,741,427 Company}

^{Street : -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{SRIDHAR KRISHNAN, SHEKHAR 11,890,541 Private Person}

^{Street : -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{DBSN SERVICES PTE LTD 211,804,370 Company}

^{Street : -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{SHEKHAR ANANTHARAMAN 11,236,720 Private Person}

^{Street : 3 TANJONG RHU ROAD}

^#04-01

^{THE WATERSIDE}

^{Town: SINGAPORE}

^{Postcode: 436881}

^{Country: Singapore}

^{ASHOK KRISHEN 6,965,188 Private Person}

^{Street : -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{VIVEK VERMA 6,847,626 Private Person}

^{Street : 20 BERRIMA ROAD}

^{Town: SINGAPORE}

^{Postcode: 299896}

^{Country: Singapore}

^{JAGDISH ACHLESHWAR PRASAD PARIHAR 5,740,744 Private Person}

^{Street : -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{KRISHNAN RAVIKUMAR 4,105,770 Private Person}

^{Street : -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{ASHOK CHANDRA MOHAN HEGDE 3,404,656 Private Person}

^{Street : -}

^{Town: -}

^{Postcode: -}

^{Country: Singapore}

^{CITIBANK CONSUMER NOMINEES PTE LTD 6,238,412 Company}

^{Street : -}

^{Town: SINGAPORE}

^{Postcode: -}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{RUSSELL AIF SINGAPORE INVESTMENTS 194,255,835}

^{INTERNATIONAL FINANCE CORPORATION 104,323,378}

^{DRAGON ORIENT HOLDINGS LIMITED 57,806,616}

^{SELETAR INVESTMENTS PTE LTD 75,542,216}

^{DEXIA TRUST SERVICES SINGAPORE 11,905,633}

^{TM ASIA LIFE SINGAPORE LTD. (F.K.A. 5,167,000}

^{YEAP LAM HONG 2,706,000}

^{LIM BEE KOK 875,000}

^{OCBC SECURITIES PRIVATE LTD 847,000}

^{MACQUARIE SECURITIES (S) PRIVATE 843,000}

SUBSIDIARY(IES)

^{OLAM CAM SARL}

^{OLAM GHANA LIMITED}

^{OLAM NIGERIA PLC}

^{OLAM TANZANIA LTD}

^{PT OLAM INDONESIA}

^{OLAM MOZAMBIQUE LIMITADA}

^{OLAM MADAGASCAR SARL}

^{OLAM POLSKA SP ZOO}

^{OLAM VIETNAM LIMITED}

^{OLAM SOUTH AFRICA (PROPRIETARY) LTD}

^{OUTSPAN PNG LTD}

^{OLAM EUROPE B.V.}

^{OLAM BURKINA SARL}

^{OLAM BISSAU LIMITADA}

^{OLAM GABON SARL}

^{OUTSPAN GHANA LIMITED}

^{CARAWAY PTE. LTD.}

^{OLAM INVESTMENTS LIMITED}

^{OLAM IVORIE SARL}

^{OUTSPAN NIGERIA LTD}

^{OUTSPAN IVORIE SARL}

^{OLAM FRANCE SARL}

^{OLAM BRAZIL LTDA}

^{OLAM MIDDLE EAST L.L.C.}

^{OLAM AMERICAS INC}

^{OLAM CONGO (RDC) SPRL}

^{OLAM EUROPE LTD}

^{OLAM UGANDA LIMITED}

^{OLAM INSURANCE LIMITED}

^{OLAM GUINEE SARL}

^{OUTSPAN BRAZIL}

^{OLAM DAIRY}

^{OLAM ONLINE LTD}

^{OLAM BENIN SARL}

^{OLAM TOGO SARL}

^{OLAM KAZAKHSTAN}

^{OLAM KENYA LIMITED}

^{OLAM ZIMBABWE (PRIVATE) LIMITED}

^{OLAM UKRAINE LLC}

^{PANASIA INTERNATIONAL FZCO}

^{OLAM SHANGHAI LTD}

^{OLAM SHANGDONG LTD}

^{LLC OUTSPAN INTERNATIONAL}

^{EURL AGRI COMMODITIES}

^{OUTSPAN PERU SAC}

^{LLC CARAWAY FOODS}

^{OLAM ARGENTINA S.A.}

^{PT AGRONESIA BUMI PERSADA}

^{CARAWAY FOODS INTERNATIONAL (NIGERIA) LTD}

^{CARAWAY FOODS INTERNATIONAL SOUTH AFRICA}

^{OLAM LIBERIA LIMITED}

^{MANTRA IVOIRE S.A.}

^{OUTSPAN COLOMBIA S.A.}

^{OLAM ARMAZEN GERAIS LTDA}

^{OLAM R.O.C. S.A.R.L.}

^{OLAM HONDURAS S.A.}

^{OLAM EGYPT L.L.C.}

^{OLAM INVESTMENT AUSTRALIA PTY LTD}

^{OLAM US HOLDINGS INC}

^{OLAM ZAMBIA LIMITED}

^{OLAM DALIAN LIMITED}

^{RUDRA INTERNATIONAL LIMITED}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation :GOOD}

FINANCIAL ELEMENTS

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

^{Date Account Lodged: 31/10/2007}

^{Balance Sheet Date: 30/06/2007 30/06/2006}

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS ---}

^{Preliminary Exp 17,228,000 5,061,000}

^{Intangible Fixed Assets: 96,203,000 -}

^{Tangible Fixed Assets: 129,348,000 72,518,000}

^{Investments 83,033,000 1,611,000}

^{Total Fixed Assets: 325,812,000 79,190,000}

^{Inventories: 1,163,203,000 1,013,904,000}

^{Receivables: 508,193,000 426,778,000}

^{Short Term Fin. Assets: 401,493,000 199,614,000}

^{Cash,Banks, Securitis: 237,607,000 296,241,000}

^{Other current assets: 541,284,000 342,438,000}

^{Total Current Assets: 2,851,780,000 2,278,975,000}

^{TOTAL ASSETS: 3,177,592,000 2,358,165,000}

^{--- LIABILITIES ---}

^{Equity capital: 397,730,000 396,954,000}

^{Profit & lost Account: 34,992,000 91,032,000}

^{Other: 27,000 53,000}

^{Total Equity: 432,749,000 488,039,000}

^{Long Term Loans: 924,331,000 341,011,000}

^{Total L/T Liabilities: 924,331,000 341,011,000}

^{Trade Creditors: 190,156,000 86,672,000}

^{Advanced payments: 3,056,000 1,108,000}

^{Due to Bank: 1,023,327,000 1,154,461,000}

^{Provisions: 42,787,000 23,319,000}

^{Other Short term Liab.: 500,307,000 217,260,000}

^{Prepay. & Def. charges: 60,879,000 46,295,000}

^{Total short term Liab.: 1,820,512,000 1,529,115,000}

^{TOTAL LIABILITIES: 2,744,843,000 1,870,126,000}

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

^{Net Sales 5,455,508,000 4,361,102,000}

^{Purchases,Sces & Other Goods: 4,275,889,000 3,372,172,000}

^{Gross Profit: 1,179,619,000 988,930,000}

^{NET RESULT BEFORE TAX: 126,186,000 96,738,000}

^{Tax : 17,165,000 9,531,000}

^{Net income/loss year: 109,021,000 87,207,000}

^{Interest Paid: 147,072,000 94,704,000}

^{Depreciation: 17,209,000 12,144,000}

^{Dividends: 46,638,000 33,579,000}

^{Directors Emoluments: 4,103,000 3,913,000}

^{Wages and Salaries: 95,478,000 66,455,000}

^{Financial Income: 4,926,000 6,340,000}

RATIOS

^{30/06/2007 30/06/2006}

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

^{Fin. Charges / Turnover(%):0.03 0.02}

^{Stock / Turnover(%): 0.21 0.23}

^{Net Margin(%): 2.00 2.00}

^{Return on Equity(%): 25.19 17.87}

^{Return on Assets(%): 3.43 3.70}

^{Dividends Coverage: 2.34 2.60}

^{Net Working capital: 1031268000.00 749860000.00}

^{Cash Ratio: 0.13 0.19}

^{Quick Ratio: 0.41 0.47}

^{Current ratio: 1.57 1.49}

^{Receivables Turnover: 33.53 35.23}

^{Leverage Ratio: 8.16 3.83}

^{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 GROUP WAS SEEN TO BE STABLE IN VIEW OF}

^{THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED SOUND EVEN THOUGH NET WORTH DECREASED BY 11.33% FROM S$488,039,000 IN FY 2006 TO S$432,749,000 IN FY 2007. THIS WAS DUE TO LOWER RESERVES OF S$34,992,000 (2006: S $91,032,000); A FALL OF 61.56% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY AMOUNTS DUE TO BANKS WHICH MADE UP 56.21% (2006: 75.50%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$1,023,327,000 (2006: S$1,154,461,000). THE BREAKDOWN WAS AS FOLLOWS:}

^{*AMOUNTS DUE TO BANKERS - 2007: S$545,555,000 (2006: S$783,312,000)}

^{*MEDIUM TERM NOTES - 2007: S$450,000 (2006: S$352,508,000)}

^{*INTEREST PAYABLE ON SHORT-TERM BANK LOANS - 2007: S$27,772,000 (2006:}

^{S$18,641,000)}

^{TRADE CREDITORS ROSE SHARPLY BY 1.19 TIMES TO S$190,156,000 (2006: S $86,672,000).}

^{SUBJECT'S LONG TERM LIABILITIES, WHICH AMOUNTED TO S$924,331,000 IN FY 2007 (2006: S$341,011,000), CONSISTED OF THE FOLLOWING:}

^{*TERM LOANS FROM BANKS - 2007: S$703,663,000 (2006: S$213,330,000)}

^{*MEDIUM TERM NOTES - 2007: S$220,668,000 (2006: S$127,681,000)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 3.83 TIMES TO 8.16 TIMES AS A RESULT OF A DROP IN TOTAL EQUITY AND A RISE IN TOTAL LIABILITIES. A LOWER RATIO WOULD BE MORE DESIRABLE AS THE LOWER THE RATIO, THE GREATER THE FINANCIAL SAFETY AND OPERATING FREEDOM FOR THE COMPANY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 37.53% TO S$1,031,268,000 (2006: S$749,860,000).}

^{CURRENT RATIO ROSE TO 1.57 TIMES (2006: 1.49 TIMES) WHILE QUICK RATIO FELL TO 0.41 TIMES (2006: 0.47 TIMES).}

^{CASH AND CASH EQUIVALENTS FELL BY 19.79% TO S$237,607,000 (2006: S}

^{$296,241,000) AND COMPRISED OF:}

^{*CASH AND BANK BALANCES - 2007: S$194,235,000 92006: S$162,356,000)}

^{*FIXED DEPOSITS - 2007: S$43,372,000 (2006: S$133,885,000)}

^{PROFITABILITY:}

^{REVENUE ROSE BY 25.09% FROM S$4,361,102,000 IN FY 2006 TO S$5,455,508,000 AND NET PROFIT ROSE BY 25.01% TO S$109,021,000 (2006: S$87,207,000). NET MARGIN REMAINED THE SAME FOR BOTH YEARS AT 2.00% (2006: 2.00%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING. THE AVERAGE COLLECTION PERIOD WAS RELATIVELY THE SAME FOR BOTH YEARS AT 34 DAYS (2006: 35 DAYS).}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS WERE CLASSIFIED UNDER PRELIMINARY:}

^{*DEFERRED TAX ASSET - 2007: S$7,762,000 (2006: S$4,608,000)}

^{*OTHER RECIEVABLE - 2007: S$9,466,000 (2006: S$453,000)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{AMOUNTS DUE TO BANKERS}

^{THE AMOUNTS DUE TO BANKERS FOR THE COMPANY ARE REPAYABLE WITHIN 12 MONTHS AND BEAR INTEREST IN THE RANGE OF 3.80% TO 8.82% (2006: 3.50% TO 6.50%) PER ANNUM.}

^{THE AMOUNTS DUE TO BANKERS FOR THE SUBSIDIARY COMPANIES ARE REPAYABLE WITHIN 12 MONTHS AND BEAR INTEREST IN THE RANGE OF 5% TO 17% (5% TO 20%) PER ANNUM.}

^{MEDIUM TERM NOTES}

^{THE COMPANY HAS A MULTICURRENCY MEDIUM TERM NOTES PROGRAMME WITH A MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $800,000,000 (2006: $800,000,000). THESE MEDIUM TERM NOTES ARE UNSECURED, BEAR INTEREST AT FLOATING RATES RANGING FROM 3.19% TO 6.67% (2006: 3.80% TO 6.97%) PER ANNUM.}

^{TERM LOANS FROM BANKS}

^{TERM LOANS FROM BANKS FOR COMPANY BEAR INTEREST AT FLOATING INTEREST RATES RANGING FROM 6.58% TO 7.18% (2006: 6.18% TO 6.82%), UNSECURED AND ARE REPAYABLE BETWEEN 3 TO 4 YEARS.}

^{INCLUDED IN TERM LOANS FROM BANK FOR GROUP ARE INDUSTRIAL DEVELOPMENT BOND WHICH WAS ISSUED BY ONE OF THE SUBSIDIARY COMPANIES THAT BEARS INTEREST AT IRB ("INDUSTRIAL REVENUE BOND") RATE + 1.125% AND MATURES IN ANNUAL INSTALMENTS RANGING FROM $200,000 TO $4,200,000 THROUGH 1 AUGUST 2023. THESE DEBTS ARE SECURED BY THE ASSETS OF THE SUBSIDIARY AND ARE BACKED BY A LETTER OF CREDIT FROM A BANK.}

^{SUBSEQUENT EVENTS}

^{(A) SUBSEQUENT TO FINANCIAL YEAR END, THE DIRECTORS HAVE PROPOSED A FIRST AND FINAL ORDINARY DIVIDEND OF $0.0175 PER ORDINARY SHARE AMOUNTING TO $27,214,170 AND A SPECIAL DIVIDEND OF $0.0175 PER ORDINARY SHARE AMOUNTING TO $27,214,170, IN RESPECT OF THE FINANCIAL YEAR ENDED 30 JUNE 2007 SUBJECT TO APPROVAL OF SHAREHOLDERS AT THE ANNUAL GENERAL MEETING TO BE HELD ON 29 OCTOBER 2007. THE FIRST AND FINAL DIVIDEND AND SPECIAL DIVIDEND WILL BE PAID ON 16 NOVEMBER 2007.}

^{(B) AS AT 30 JUNE 2007, THE GROUP HELD 25.3% OF THE ISSUED SHARE CAPITAL OF QUEENSLAND COTTON HOLDINGS LIMITED ("QCH") THROUGH OLAM AUSTRALIA PTY LIMITED, A WHOLLY OWNED SUBSIDIARY OF ONE OF THE SUBSIDIARY COMPANIES. SUBSEQUENT TO YEAR END, THE GROUP ACQUIRED THE REMAINING SHARES OF QCH AT A FINAL OFFER PRICE OF AUD $5.90 CASH PER SHARE.}

^{(C) ON 27 AUGUST 2007, THE COMPANY ANNOUNCED THAT IT WILL ACQUIRE A 100% EQUITY INTEREST IN KEY FOODS INGREDIENTS LLC AND ITS SUBSIDIARIES, A PROCESSOR AND GLOBAL SUPPLIER OF DEHYDRATES TO THE FOOD PROCESSING INDUSTRY FOR A TOTAL CONSIDERATION OF APPROXIMATELY $24.5 MILLION (US$16.0 MILLION).}

^{(D) ON 12 SEPTEMBER 2007, THE COMPANY ANNOUNCED THAT IT WILL ACQUIRE A 100% EQUITY INTEREST IN NAARDEN AGRO PRODUCTS B.V., AN INTERNATIONAL SUPPLY CHAIN MANAGER OF INDUSTRIAL CASEINS, FOR A TOTAL CONSIDERATION OF APPROXIMATELY $6.8 MILLION (EUR 3.3 MILLION).}

^{(E) ON 2 OCTOBER 2007, THE COMPANY ANNOUNCED THAT IT WILL ACQUIRE A 100% EQUITY INTEREST IN PT DHARMAPALA USAHA SUKSES, A SUGAR REFINERY BASED IN INDONESIA FOR A TOTAL CONSIDERATION OF APPROXIMATELY $19.3 MILLION (US$12.6 MILLION).}

^{SEGMENT INFORMATION}

^{THE SEGMENTATION OF PRODUCTS HAS BEEN DONE IN THE FOLLOWING MANNER:}

^{*EDIBLE NUTS, SPICES AND BEANS - CASHEWS, PEANUTS AND OTHER EDIBLE}

^{NUTS, CLOVES, PEPPER, SESAME AND OTHER SPICES AND BEANS AND LENTILS}

^{*CONFECTIONERY AND BEVERAGE INGREDIENTS - COCOA AND COCOA PRODUCTS,}

^{COFFEE AND COFFEE PRODUCTS, SHEANUTS AND SHEA-PRODUCTS}

^{*FIBRE AND WOOD PRODUCTS - COTTON AND WOOD PRODUCTS}

^{*FOOD STAPLES AND PACKAGED FOODS - RICE, SUGAR, MILK POWDER AND}

^{PACKAGED FOODS BUSINESS}

^{BUSINESS SEGMENTS}

^{SEGMENT REVENUE}

^{*EDIBLE NUTS, SPICES AND BEANS - 2007: S$783,202,000 (2006: S}

^{$588,253,000)}

^{*CONFECTIONERY AND BEVERAGE INGREDIENTS - 2007: S$2,177,812,000 (2006:}

^{S$1,711,255,000)}

^{*FIBRE AND WOOD PRODUCTS - 2007: S$1,062,167,000 (2006: S}

^{$1,003,153,000)}

^{*FOOD STAPLES AND PACKAGED FOODS - 2007: S$1,432,327,000 92006: S}

^{$1,058,441,000)}

^{*CONSOLIDATED - 2007: S$5,455,508,000 92006: S$4,361,102,000)}

^{GEOGRAPHICAL SEGMENTS}

^{SEGMENT REVENUE}

^{*ASIA AND MIDDLE EAST - 2007: S$2,074,439,000 (2006: S$1,649,063,000)}

^{*AFRICA - 2007: S$1,409,081,000 (2006: S$1,162,921,000)}

^{*EUROPE - 2007: S$1,271,087,000 (2006: S$969,726,000)}

^{*AMERICAS - 2007: S$700,901,000 (2006: S$579,392,000)}

^{*ELIMINATIONS - 2007: NIL (2006: NIL)}

^{*CONSOLIDATED - 2007: S$5,455,508,000 (2006: S$4,361,102,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON}

^{04/07/1995 AS A PUBLIC COMPANY LIMITED BY SHARES AND IS TRADING}

^{UNDER ITS PRESENT NAMESTYLE OF "OLAM INTERNATIONAL LIMITED".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 1,712,083,080 SHARES, OF A VALUE OF S$706,386,306.71.}

^{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(S), UNDER REVIEW, THE PRINCIPAL}

^{ACTIVITIES OF SUBJECT AND THAT OF ITS SUBSIDIARY COMPANIES ARE THOSE}

^{OF SOURCING, PROCESSING AND TRADING OF AGRI COMMODITIES.}

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

^{LISTED ON SGX MAINBOARD:}

^{* 11 FEBRUARY 2005}

^ACTIVITIES:

^{* GLOBAL SOURCING, PROCESSING, MERCHANDISING AND SUPPLY CHAIN MANAGERS OF AGRICULTURAL PRODUCTS, RAW MATERIAL AND FOOD}

^INGREDIENTS

^{PRODUCTS DEALING:}

^{* EDIBLE NUTS, SPICES AND PULSES - CASHEWS, PEANUTS AND OTHER EDIBLE}

^{NUTS, CLOVES, PEPPER, SESAME AND}

^{OTHER SPICES, AND BEANS AND LENTILS}

^{* COCOA, COFFEE AND SHEANUTS - COCOA AND COCOA PRODUCTS, COFFEE AND}

^{COFFEE PRODUCTS, SHEANUTS AND SHEA-}

^PRODUCTS

^{* FIBRE AND WOOD PRODUCTS - COTTON AND WOOD PRODUCTS}

^{* FOOD STAPLES AND PACKAGED FOODS - RICE, SUGAR, MILK POWDER AND}

^{PACKAGED FOODS BUSINESS}

^{MARKET PRESENCE:}

^{* INDIA}

^{* VIETNAM}

^{* CAMEROON}

^{* UGANDA}

^{* TANZANIA}

^{* INDONESIA}

^{* NORTH AMERICA}

^{* EUROPE}

^{* MIDDLE EAST}

^{* SOUTH EAST ASIA}

^{FUTURE MARKET:}

^{* NORTH AFRICA}

^{SOME OF SUBJECT'S CUSTOMERS:}

^{* NESTLE UK LTD}

^{* NESTLE FRANCE S.A}

^{* SARA LEE I DE POSTFACH}

^{* KRAFT FOODS NORTH}

^{* AMERICA, INC.}

^{* MASTERFOODS UK}

^{* CADBURY INTERNATIONAL LTD}

^{* LAVAZZA SPA}

^{* TCHIBO FRISCH-ROST-KAFFEE GMBH}

^{* ADM USA}

^{* BLOMMER CHOCOLATE}

^{* JOHN B. SANFILIPO & SON INC.}

^{* THE NUT COMPANY B.V.}

^{TERMS OF PAYMENT:}

^{* CUSTOMERS: RECEIPT OF INWARD LETTERS OF CREDIT, CASH AGAINST THE}

^{PRESENTATION OF DOCUMENTS OF TITLE, CASH COLLECTION}

^{BETWEEN 30 AND 45 DAYS, CREDIT PERIODS UP TO 45 DAYS.}

^{* SUPPLIERS: LETTERS OF CREDIT, CASH AGAINST PRESENTATION OF DOCUMENTS}

^{OF TITLE.}

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

^{* SINGAPORE COMMODITY EXCHANGE}

^{NEWS: ACQUISITION OF 100% OF PT DHARMAPALA USAHA SUKSES (PT DUS)}

^"EXTRACTS"

^{SOURCE: OLAM WEBSITE}

^{DATE: 02/10/2007}

^TRANSACTION:

^{ACQUISITION OF 100% OF THE EQUITY CAPITAL OF PT DUS.}

^{CONSIDERATION:}

^{VALUED AT US$12.6 MILLION AT THE CONSIDERATION OF US$ 5 MILLION TO BE PAID FOR PURCHASE OF THE ENTIRE EQUITY CAPITAL AND SETTLEMENT OF OUTSTANDING SHAREHOLDER LOAN. BALANCE CONSIDERATION TO BE UTILISED FOR SETTLEMENT OF OUTSTANDING BANK DEBT. CAPITAL EXPENDITURE FOR RENOVATION AND FURTHER SCALE ENHANCEMENT ESTIMATED AT US$12 MILLION.}

^FINANCING:

^{ALL CASH TRANSACTION. FULLY FUNDED THROUGH INTERNAL ACCRUALS AND BORROWINGS.}

^CLOSING:

^{TRANSACTION EXPECTED TO CLOSE IN 60 DAYS.}

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

^{GRANTED BY SUBJECT'S PERSONNEL}

^{NUMBER OF EMPLOYEES (30 JUNE):}

^{* GROUP - 2006: NOT AVAILABLE (2005: 5,090; 2004: 3,003; 2003: 2,375;}

^{2002: 1,680; 2001: 1,574)}

^{REGISTERED ADDRESS:}

^{3 CHURCH STREET}

^#08-01

^{SINGAPORE 049483}

^{DATE OF CHANGE OF ADDRESS: 18/12/2006}

^{BUSINESS ADDRESS:}

^{9 TEMASEK BOULEVARD}

^#11-02

^{SUNTEC TOWER 2}

^{SINGAPORE 038989}

^{- RENTED PREMISE}

^{- PREMISE OWNED BY: PROGRESS NAVIGATION CO PTE LTD}

^WEBSITE:

^{www.olamonline.com}

^EMAIL:

^{info@olamnet.com}

MANAGEMENT

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

^{1) PETER FRANCES AMOUR, AN AUSTRALIAN}

^{- BASED IN HONG KONG}

^{2) SUNNY GEORGE VERGHESE, A BRITISH}

^{- BASED IN SINGAPORE.}

^{3) TSE PO SHING, A HONG KONG}

^{- BASED IN HONG KONG.}

^{4) WONG HENG TEW, A SINGAPOREAN}

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

^{ECICS HOLDINGS LTD}

^{SELETAR INVESTMENTS PTE LTD}

^{BINTAN LAGOON RESORT LTD}

^{ASEAN BINTULU FERTILIZER SDN BHD}

^{FINLAYSON ALPHA INVESTMENTS PTE LTD}

^{FINLAYSON ALPHA}

^{FINLAYSON ONE PTE LTD}

^{FINLAYSON GLOBAL CORPORATION LIMITED}

^{5) RANGAREDDY JAYACHANDRAN, A SINGAPOREAN}

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

^{KEWALRAM SINGAPORE LIMITED}

^{REDINGTON PTE LTD}

^{KEWALRAM REALTY LTD}

^{CADENSWORTH TRADING PTE LTD}

^{AQUARIUS INVESTMENT ADVISORS PTE LTD}

^{REDINGTON DISTRIBUTION PTE. LTD.}

^{6) LIM CHOO SAN MICHAEL, A SINGAPOREAN}

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

^{NATIONAL UNIVERSITY HOSPITAL (SINGAPORE) PTE LTD}

^{NATIONAL SKIN CENTRE (SINGAPORE) PTE LTD}

^{NANYANG TECHNOLOGICAL UNIVERSITY}

^{TAN TOCK SENG HOSPITAL PTE LTD}

^{NATIONAL NEUROSCIENCE INSTITUTE OF SINGAPORE PTE LTD}

^{NATIONAL HEALTHCARE GROUP PTE LTD}

^{7) NARAIN GIRDHAR CHANRAI, A SINGAPORE PERMANENT RESIDENT}

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

^{KEWALRAM SINGAPORE LIMITED}

^{REDINGTON PTE LTD}

^{KEWALRAM REALTY LTD}

^{CADENSWORTH TRADING PTE LTD}

^{8) ROBERT MICHAEL TOMLIN, A SINGAPORE PERMANENT RESIDENT}

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

^{MEDIACORP PTE. LTD.}

^{SINGAPORE REPERTORY THEATRE LTD}

^{SCHRODER PROPERTY ASIA (S) LTD}

^{SINGAPORE MANAGEMENT UNIVERSITY}

^{YELLOW PAGES (SINGAPORE) LIMITED}

^{9) SRIDHAR KRISHNAN, A SINGAPOREAN}

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

^{10) SHEKHAR ANANTHARAMAN, A SINGAPORE PERMANENT RESIDENT}

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

^{11) MARK HAYNES DANIELL, A SINGAPORE PERMANENT RESIDENT}

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

SINGAPORE'S COUNTRY RATING 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

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

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

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

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

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

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

ASSETS

• MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
• HIGH QUALITY COMPETITIVENESS IN ASIA
• EXCELLENT BUSINESS CLIMATE
• POLITICAL STABILITY.

WEAKNESSES

• SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
• AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
• GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
• BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.0% 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.42.30
UK Pound	1	Rs.84.03
Euro	1	Rs.66.42

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