MIRA INFORM REPORT

Report Date :

10.06.2008

IDENTIFICATION DETAILS

Name :	COLORCON ASIA PACIFIC PTE LTD

Registered Office :	51 Merchant Road, #03-05, Merchant Square

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	^16/10/1998

Com. Reg. No.:	^199805075W

Legal Form :	^{Pte Ltd}

Line of Business :	Marketing, Distribution and Sale of Chemicals and Chemical Product Necessities, Medicinal and Pharmaceutical Products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

COLORCON ASIA PACIFIC PTE LTD

Line Of Business

MARKETING, DISTRIBUTION AND SALE OF CHEMICALS AND CHEMICAL PRODUCT NECESSITIES, MEDICINAL AND PHARMACEUTICAL PRODUCTS

Parent Company

COLORCON, INC.

(PERCENTAGE OF SHAREHOLDINGS: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales US$ 19,094,829

Networth US$ 15,945,857

Paid-Up Capital US$ 6,392,666

Net result US$ 6,222,736

Net Margin(%) 32.59

Return on Equity(%) 39.02

Leverage Ratio 0.28

COMPANY IDENTIFICATION

^{Subject Company
: COLORCON
ASIA PACIFIC PTE LTD}

^{Former Name : -}

^{Business
Address: 51 MERCHANT ROAD}

^#03-05

^{MERCHANT SQUARE}

^{Town: SINGAPORE}

^{Postcode: 058283}

^{Country: Singapore}

^{Telephone: 6438
0318}

^{Fax: 6438 0178}

^{ROC Number: 199805075W}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form :
Pte Ltd}

^{Date Inc. :}^16/10/1998

^{Previous Legal Form :}^-

^{Summary year :}^31/12/2006

^{Sales :}^19,094,829

^{Networth :}^15,945,857

^{Capital :
-}

^{Paid-Up Capital :}^6,392,666

^{Employees :
-}

^{Net result :}^6,222,736

^{Share value :
1}

^{Auditor :}^{ERNST & YOUNG}

^{BASED ON ACRA'S}

^{NO.
OF SHARES CURRENCY AMOUNT}

^{ISSUED
ORDINARY 11,700,431 SGD 11,700,431}

^{PAID-UP
ORDINARY - SGD 11,700,431}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started :
16/10/1998}

PRINCIPAL(S)

^{TEO KWEE
HIONG
S1347086C Director}

DIRECTOR(S)

^{TEO KWEE
HIONG S1347086C Director}

^{Appointed on
:17/10/2001}

^{Street : 90 HILL VIEW AVENUE}

^#07-03

^{Town: SINGAPORE}

^{Postcode: 669610}

^{Country: Singapore}

^{TEO KWEE
HIONG S1347086C Company Secretary}

^{Appointed on
:17/10/2001}

^{Street : 90 HILL VIEW AVENUE}

^#07-03

^{Town: SINGAPORE}

^{Postcode: 669610}

^{Country: Singapore}

^{STEPHEN FRANCIS
ZENUH G5652140U Director}

^{Appointed on 05/07/2002}

^{Street : 19
NASSIM HILL}

^#09-02

^{NASSIM WOODS}

^{Town: SINGAPORE}

^{Postcode: 258482}

^{Country: Singapore}

^{PATRICIA SEET GEOK
NEO S1465985D Company Secretary}

^{Appointed on :
13/12/2002}

^{Street : 48 UNIVERSITY WALK}

^{Town: SINGAPORE}

^{Postcode: 297758}

^{Country: Singapore}

^{CORNELIS VAN DEN
MUYZENBERG BA0245930 Director}

^{Appointed on :
08/03/2007}

^{Street : 8864 GERMANTOWN AV}

^{PA 19118}

^{Town: PHILADEPHIA}

^Postcode:

^{Country: United States}

^{CHAN SENG
FATT S2571423G Director}

^{Appointed on :
04/07/2006}

^{Street : 160 LENTOR LOOP}

^#12-01

^{BULLION PARK}

^{Town: SINGAPORE}

^{Postcode: 789094}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{HO LIN TECK S1295694J}

^{MICHAEL GEORGE
EASTERBROOK F2402600X}

^{JEAN-CLAUDE
FERNAND DENEUVILLE 93HA34410}

ACTIVITY(IES)

^{CHEMICALS
Code:3970}

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

^{BASED ON ACRA'S
RECORD}

^{1) WHOLESALE OF
CHEMICALS AND CHEMICAL PRODUCTS}

^{2) WHOLESALE OF MEDICINAL
AND PHARMACEUTICAL PRODUCTS (WESTERN)}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{COLORCON,
INC. 11,700,431 Company}

^{Street : 415
MOYER BOULEVARD P O BOX}

^{24 WEST POINT PA}

^19486-0024

^{Town: -}

^{Postcode: -}

^{Country: United
States}

FORMER SHAREHOLDER(S)

^{MICHAEL GEORGE
EASTERBROOK
1}

^{JEAN-CLAUDE
FERNAND DENEUVILLE
1}

HOLDING COMPANY

^{COLORCON,
INC.
UF25912D % : 100}

SUBSIDIARY(IES)

^{SHANGHAI COLORCON
COATING} ^{TECHNOLOGY CO. LTD}

^{COLORCON
(SHANGHAI) TRADING CO.} ^LTD

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality: AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial
Situation: AVERAGE}

FINANCIAL ELEMENTS

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

^{Date Account
Lodged: 28/09/2007}

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

^{Number of
weeks: 52 52}

^{Consolidation
Code: COMPANY COMPANY}

^{--- ASSETS} ^---

^{Preliminary
Exp 4,249,452 4,878,621}

^{Tangible
Fixed Assets:
648,368
656,257}

^{Investments 6,592,979 6,592,980}

^{Total Fixed Assets: 11,490,799 12,127,858}

^{Inventories: 728,675 582,735}

^{Receivables: 2,321,222 2,282,899}

^{Cash,Banks,
Securitis: 4,827,502 3,918,578}

^{Other
current assets:
1,108,304
227,377}

^{Total Current Assets: 8,985,703 7,011,589}

^{TOTAL ASSETS: 20,476,502 19,139,447}

^{--- LIABILITIES} ^---

^{Equity
capital: 6,392,666 6,392,666}

^{Profit
& lost Account: 9,553,191 8,130,455}

^{Total Equity: 15,945,857 14,523,121}

^{L/T
deffered taxes:
74,668
57,672}

^{Total
L/T Liabilities:
74,668
57,672}

^{Trade
Creditors:
3,469,476 3,845,906}

^{Provisions: 986,501 712,748}

^{Total short term Liab.: 4,455,977 4,558,654}

^{TOTAL LIABILITIES: 4,530,645 4,616,326}

--- PROFIT & LOSS ACCOUNT ---

^{Net
Sales
19,094,829
19,196,846}

^{Purchases,Sces
& Other Goods:
9,613,879
9,830,360}

^{Gross
Profit:
9,480,950
9,366,486}

^{NET
RESULT BEFORE TAX:
7,128,443 5,912,935}

^{Tax
:
905,707
684,500}

^{Net
income/loss year:
6,222,736
5,228,435}

^{Depreciation: 224,912 182,936}

^{Dividends: 4,800,000 6,000,000}

^{Directors
Emoluments:
1,328,465
1,323,950}

^{Wages
and Salaries:
2,824,162
3,240,246}

^{Financial
Income:
89,017
100,067}

RATIOS

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

^{Net result /
Turnover(%): 0.33
0.27}

^{Stock /
Turnover(%): 0.04 0.03}

^{Net
Margin(%): 32.59 27.24}

^{Return on
Equity(%): 39.02
36.00}

^{Return on
Assets(%): 30.39
27.32}

^{Dividends
Coverage: 1.30
0.87}

^{Net Working
capital: 4529726.00
2452935.00}

^{Cash Ratio: 1.08 0.86}

^{Quick Ratio: 1.60 1.36}

^{Current
ratio: 2.02 1.54}

^{Receivables
Turnover: 43.76
42.81}

^{Leverage
Ratio: 0.28 0.32}

^{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 OFTHE FOLLOWING:}

^NET
WORTH:

^{THE BALANCE SHEET WAS
PASSABLE WITH NET WORTH IMPROVED BY} ^{9.80% FROM US$14,523,121 IN FY 2005 TO
US$15,945,857 IN FY 2006. THIS WAS DUE TO HIGHER REVENUE RESERVE OF
US$9,553,191 (2005: US} ^{$8,130,455); A RISE OF 17.50% FROM THE PRIOR
FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM,
SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS} ^{WHICH MADE
UP 77.86% (2005: 84.36%) OF THE TOTAL CURRENT LIABILITIES} ^{AND
AMOUNTED TO US$3,469,476 (2005: US$3,845,906). THE BREAKDOWN WAS} ^AS
FOLLOWS:

^{*TRADE PAYABLES AND
ACCRUED OPERATING EXPENSES - 2006: US$3,020,883}

^{(2005:
US$3,298,772)}

^{*AMOUNTS DUE TO
SUBSIDIARY COMPANY - 2006: US$167,458 (2005: US} ^$91,495)

^{*AMOUNTS DUE TO
RELATED CORPORATIONS - 2006: US$281,135 (2005: US} ^$455,639)

^{IN ALL, LEVERAGE
RATIO FELL FROM 0.32 TIMES TO 0.28 TIMES AS A RESULT} ^{OF A DROP IN
TOTAL LIABILITIES AND A RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL,
SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM} ^{THE RISE IN
NET WORKING CAPITAL BY 84.67% TO US$4,529,726 (2005: US$2,452,935).}

^{BOTH CURRENT AND
QUICK RATIOS ROSE TO 2.02 TIMES (2005: 1.54 TIMES) AND 1.60 TIMES (2005: 1.36
TIMES) RESPECTIVELY.}

^{CASH AND CASH
EQUIVALENTS ROSE BY 23.20% TO US$4,827,502 (2005: US} ^{$3,918,578)
AND COMPRISED OF THE FOLLOWING:}

^{*CASH AT BANK -
2006: US$4,827,502 (2005: US$3,858,572)}

^{*FIXED DEPOSITS -
2006: NIL (2005: US$60,006)}

^{PROFITABILITY:}

^{REVENUE FELL BY
0.53% FROM US$19,196,846 IN FY 2005 TO} ^{US$19,094,829. HOWEVER, NET PROFIT
IMPROVED BY 19.02% TO US$6,222,736} ^{(2005: US$5,228,435). HENCE, NET
MARGIN INCREASED TO 32.59% (2005:} ^27.24%).

^{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 HAS LENGTHENED TO 44 DAYS (2005: 43} ^DAYS).

^{NOTES
TO FINANCIAL STATEMENTS:}

^{CONTINGENT
LIABILITIES}

^{THE COMPANY HAS
PROVIDED CORPORATE GUARANTEES TO TWO SUPPLIERS, DOW} ^{CHEMICAL
PACIFIC (SINGAPORE) PTE LTD AND DOW CHEMICAL PACIFIC LIMITED,} ^{FOR
THE TRADE PURCHASES MADE BY SHANGHAI COLORCON COATING TECHNOLOGY} ^{CO.
LTD. AND COLORCON (SHANGHAI) TRADING CO. LTD., THE SUBSIDIARIES} ^{AND
COLORCON ASIA PRIVATE LIMITED, A RELATED COMPANY, FROM THE} ^{SUPPLIERS.
IN THE EVENT THAT THE SUBSIDIARIES AND RELATED COMPANY} ^{DEFAULT
PAYMENT FOR TRADE PURCHASES TO THE SUPPLIERS, THE COMPANY} ^{SHALL BE
LIABLE FOR THE INDEBTEDNESS OF THE SUBSIDIARIES AND RELATED} ^{COMPANY
TO THE SUPPLIERS UP TO A CUMULATIVE AMOUNT AS FOLLOWS:}

^{*SHANGHAI COLORCON
COATING TECHNOLOGY LIMITED - 2006: US$500,000}

^{(2005: US$500,000)}

^{*COLORCON
(SHANGHAI) TRADING CO. LTD. - 2006: US$500,000 (2005: US}

^$250,000)

^{*COLORCON ASIA
PRIVATE LIMITED - 2006: US$4,000,000 (2005: US$500,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED
IN THE REPUBLIC OF SINGAPORE ON} ^{16/10/1998 AS A LIMITED PRIVATE
COMPANY AND IS TRADING UNDER ITS} ^{PRESENT NAMESTYLE AS "COLORCON
ASIA PACIFIC PTE LTD".}

^{THE COMPANY HAS AN
ISSUED AND PAID-UP CAPITAL OF} ^{11,700,431 SHARES, OF A VALUE OF S$11,700,431.}

^{PRINCIPAL
ACTIVITIES:}

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

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

^{1) WHOLESALE OF
CHEMICALS AND CHEMICAL PRODUCTS}

^{2) WHOLESALE OF
MEDICINAL AND PHARMACEUTICAL PRODUCTS (WESTERN)}

^{THE COMPANY IS
LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE} ^{CLASSIFICATION
OF: PHARMACEUTICAL PRODUCTS-WHSLE & MFRS}

^{DURING THE
FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF} ^{THE COMPANY ARE
THOSE RELATING TO THE MARKETING, DISTRIBUTION AND} ^{SALE OF CHEMICALS
AND CHEMICAL PRODUCT NECESSITIES, MEDICINAL AND} ^{PHARMACEUTICAL
PRODUCTS.}

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

^ACTIVITIES:

^{SUBJECT SUPPLIES
PRODUCTS AND SERVICES TO THE PHARMACEUTICAL AND} ^{RELATED
INDUSTRIES. SUBEJCT SPECIALISES IN THE DEVELOPMENT OF AQUEOUS} ^{FILM-COATING
TECHNOLOGIES, MODIFIED RELEASE COATINGS, AND EXCIPIENTS} ^{FOR SOLID
ORAL DOSAGE APPLICATIONS.}

^{RECOGNIZED FOR
QUALITY PRODUCTS AND RESPONSIVE SERVICE. SUBJECT} ^{ASSISTS
PHARMACEUTICAL MANUFACTURERS ACCELERATE THEIR DRUG} ^{DEVELOPMENT
PROCESS THROUGH KNOWLEDGEABLE PERSONNEL AND} ^{STRATEGICALLY LOCATED
MANUFACTURING AND TECHNICAL SERVICE FACILITIES} ^{AROUND THE WORLD.}

^{PRODUCTS DEALING:}

^{* COLOR, GLAZE, POLISH,
COAT TO ENHANCE THE APPEARANCE OF PRODUCTS}

^{* COLOR
DISPERSIONS, DRY PIGMENTS, PASTES AND LIQUIDS USING FD&C} ^{CERTIFIED
LAKES, DYES AND NATURAL COLORANTS}

^{* SEALANTS,
BARRIERS, POLISHES AND GLAZES}

^{TRADE NAMES:}

^{*
OPADRY--FILMCOATING}

^{* OPADRY II--FILMCOATING}

^{* OPADRY
AMB--FILMCOATING}

^{* OPAGLOS
2--FILMCOATING}

^{*
METHOCEL--FILMCOATING/MODIFIED RELEASE}

^{*
SURETRIC--MODIFIED RELEASE}

^{*
SURELEASE--MODIFIED RELEASE}

^{*
ACRYL-EZE--MODIFIED RELEASE}

^{* STARCH
1500--EXCIPIENTS}

^SUPPLIERS:

^{* DOW CHEMICAL
PACIFIC (SINGAPORE) PTE LTD}

^{* DOW CHEMICAL
PACIFIC LIMITED}

^{TERMS OF PAYMENT:}

^{* TRADE
DEBTORS : 30 TO 90 DAY TERMS}

^{* TRADE CREDITORS:
30 TO 90 DAY TERMS}

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

^{THE IMMEDIATE AND
ULTIMATE HOLDING COMPANY IS COLORCON INC.,} ^{INCORPORATED IN THE UNITED STATES OF
AMERICA.}

^{REGISTERED
ADDRESS:}

^{1 MARINA BOULEVARD}

^#28-00

^{ONE MARINA
BOULEVARD}

^{SINGAPORE 018989}

^{DATE OF CHANGE OF
ADDRESS: 19/04/2004}

^{BUSINESS ADDRESS:}

^{51 MERCHANT ROAD}

^#03-05

^{MERCHANT SQUARE}

^{SINGAPORE 058283}

^{- RENTED PREMISE}

^{- PREMISE OWNED
BY: MERCHANT SQUARE PTE LTD}

^WEBSITE:

^{www.colorcon.com}

^EMAIL:

^{infoap@colorcon.com}

MANAGEMENT

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

^{1) CORNELIS VAN DEN
MUYZENBERG, A DUTCH}

^{- BASED IN UNITED
STATES.}

^{2) STEPHEN FRANCIS
ZENUH, AN AMERICAN}

^{- BASED IN
SINGAPORE.}

^{3) TEO KWEE HIONG,
A SINGAPOREAN}

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

^{4) CHAN SENG FATT,
A SINGAPOREAN}

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

SINGAPORE'S COUNTRY RATING 2007

Rating: A1

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

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