MIRA INFORM REPORT

Report Date :

12.05.2008

IDENTIFICATION DETAILS

Name :	E-HUB METALS PTE LTD

Formerly Known As :	^{GRAND HARDWARE & MACHINERY PTE LTD}

Registered Office :	^{20 Gul Way} ⁶²⁹¹⁹⁶

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	^04.01.1979

Com. Reg. No.:	^197900022M

Legal Form :	^{Pte Ltd}

Line of Business :	^{Recovery and Processing of Ferrous and Non-Ferrous Metals, Melting and Refining of Copper, and Rental Servicing and Sale of Machinery and Equipment.}

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

E-HUB METALS PTE LTD

Line Of Business

^{RECOVERY AND
PROCESSING OF FERROUS AND NON-FERROUS METALS,}

^{MELTING AND
REFINING OF COPPER, AND RENTAL SERVICING AND SALE OF MACHINERY AND EQUIPMENT.}

Parent Company

^{ENVIRO-HUB HOLDINGS LTD}

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : S$15,146,715

Networth : S$ - 400,484

Paid-Up Capital : S$ 3,000,000

Net result : S$-3,212,493

Net Margin(%) : - 21.21

Return on Equity(%) : 802.15

Leverage Ratio : -167.82

COMPANY IDENTIFICATION

^{Subject
Company : E-HUB METALS PTE. LTD.}

^{Former
Name : GRAND HARDWARE & MACHINERY PTE LTD}

^{Business
Address : 20 GUL WAY}

^{Town : SINGAPORE}

^{Postcode : 629196}

^{County :}

^{Country : Singapore}

^{Telephone : 6863 2100/97694234}

^{Fax : 6897 7538/68612100}

^{ROC
Number : 197900022M}

^{Reg.
Town :}

PREVIOUS IDENTIFICATION

^{GRAND HARDWARE
& MACHINERY PTE LTD DATE OF CHANGE:
30/09/2005}

SUMMARY

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

^{Legal Form :}^{Pte Ltd}

^{Date Inc. :}^04/01/1979

^{Previous Legal Form : -}

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

^{Sales :}^15,146,715

^{Networth :}

^{Capital :}^5,000,000

^{Paid-Up Capital : 3}^,000,000

^{Employees : 50}

^{Net result :}^-3,212,493

^{Share value : -}

^{Auditor :}^KPMG

^{BASED ON ACRA'S
RECORD}

^{NO
OF SHARES CURRENCY AMOUNT}

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

^{PAID-UP
ORDINARY - SGD 3,000,000.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started :
04/01/1979}

PRINCIPAL(S)

^{KWEK NGAK
BOON S0046951C Director}

DIRECTOR(S)

^{KWEK
NGAK BOON
S0046951C Director}

^{Appointed
on : 27/05/2005}

^{Street
:
20A SANDILANDS ROAD}

^{Town :
SINGAPORE}

^{Postcode : 546086}

^{Country : Singapore}

^{CHEW
BAN CHUAN VICTOR
S7039812E Director}

^{Appointed
on : 27/05/2005}

^{Street
: 50
WORTHING ROAD}

^{SERANGOON GARDEN ESTATE}

^{Town :
SINGAPORE}

^{Postcode : 554982}

^{Country : Singapore}

^{LIM
LAN SIM JOANNA
S1572261D Company Secretary}

^{Appointed
on : 01/09/2006}

^{Street
: 165 TAMPINES STREET 12}

^#09-305

^{Town :
SINGAPORE}

^{Postcode : 521165}

^{Country : Singapore}

^{VENTATESHA
MURTHY S2716834E Director}

^{Appointed
on : 27/04/2007}

^{Street
: 49
HILLVIEW AVENUE}

^#05-07

^{HILLINGTON GREEN}

^{Town :
SINGAPORE}

^{Postcode :
669615}

^{Country : Singapore}

^{LIM
AIK KUN
S7161644D Company Secretary}

^{Appointed
on : 29/06/2007}

^{Street
: 49
HUME AVENUE}

^#07-01

^{PARC PALAIS}

^{Town: SINGAPORE}

^{Postcode: 598749}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{LATHIKA DEVI AMMA
D/O K R PILLAY S1552769B}

^{CHOONG MEE
FONG S2564466B}

ACTIVITY(IES)

^{METALS - BASE -
DEALERS And BROKERS Code:13960}

^{SCRAP METALS Code:19045}

^{BASED ON ACRA'S
RECORD}

^{1) NON-FERROUS
MEAL FOUNDRIES FOUNDRY, CHEMICAL TREATMENT PLANT,}

^{ELECTROPLATING AND
DIE-CASTING ETC.}

CHARGES

^{Date: 08/06/2006}

^{Comments
: CHARGE NO : C200603637}

^{AMOUNT SECURED : 0.00 AND ALL
MONIES OWING}

^{CHARGEE(S) : UNITED OVERSEAS
BANK LIMITED}

^{Date: 23/05/2006}

^{Comments
: CHARGE NO : C200603233 (PARTIAL
DISCHARGE & REMAIN IN REGISTER)}

^{AMOUNT SECURED : 0.00 AND ALL
MONIES OWING}

^{CHARGEE(S) : BANGKOK BANK
PUBLIC COMPANY LIMITED}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{UNITED OVERSEAS
BANK LIMITED}

^{BANGKOK BANK
PUBLIC COMPANY LIMITED}

SHAREHOLDERS(S)

^{ENVIRO-HUB
HOLDINGS LTD
3,000,000 Company}

^{Street : 20 GUL WAY}

^{Town: SINGAPORE}

^{Postcode: 629196}

^{Country: Singapore}

HOLDING COMPANY

^{ENVIRO-HUB
HOLDINGS LTD
199802709E % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality :
AVERAGE}

^{Liquidity
: LACKING}

^{Payments
: REGULAR}

^{Trend
:
LEVEL}

^{Financial
Situation : BAD}

FINANCIAL ELEMENTS

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

^{Audit Qualification: "MILD" UNCERTAINTIES "MILD" UNCERTAINTIES}

^{Date Account Lodged: 27/07/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS} ^---

^{Tangible Fixed Assets: 21,932,326 8,687,341}

^{Total
Fixed Assets:
21,932,326
8,687,341}

^{Inventories: 28,930,651 9,911,546}

^{Receivables: 3,259,406 783,468}

^{Cash,Banks, Securitis: 899,968 109,126}

^{Other current assets: 11,784,954 480,569}

^{Total
Current Assets:
44,874,979 11,284,709}

^{TOTAL
ASSETS:
66,807,305
19,972,050}

^{--- LIABILITIES} ^---

^{Equity capital: 3,000,000 3,000,000}

^{Profit & lost Account: -3,400,484 -187,991}

^{Total
Equity:
-400,484
2,812,009}

^{Long Term Loans: 8,074,671}

^{L/T deffered taxes: 782,000}

^{Other long term Liab.: 318,608 6,169,580}

^{Total L/T
Liabilities:
9,175,279
6,169,580}

^{Trade Creditors: 2,331,836 2,889,476}

^{Short term liabilities: 239,651}

^{Due to Bank: 16,443,307 627,586}

^{Prepay. & Def.
charges: 4,336,635 48,801}

^{Other Short term Liab.: 34,681,081 7,424,598}

^{Total
short term Liab.: 58,032,510 10,990,461}

^{TOTAL
LIABILITIES:
67,207,789
17,160,041}

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

^{Net Sales 15,146,715 1,703,899}

^{Purchases,Sces & Other
Goods: 14,542,636 1,718,416}

^{Gross Profit: 604,079 -14,517}

^{NET RESULT BEFORE TAX: -2,430,493 -593,671}

^{Tax :
782,000}

^{Net income/loss year: -3,212,493 -593,671}

^{Interest Paid: 1,350,195 103,442}

^{Depreciation: 1,673,099 12,377}

^{Directors Emoluments: 1,012,800 212,700}

^{Wages and Salaries: 2,301,356 101,516}

RATIOS

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

^{Turnover per employee: 302934.30 34077.98}

^{Net result /
Turnover(%): -0.21 -0.35}

^{Fin. Charges /
Turnover(%):0.09
0.06}

^{Stock / Turnover(%): 1.91 5.82}

^{Net Margin(%): -21.21 -34.84}

^{Return on Equity(%): 802.15 -21.11}

^{Return on Assets(%): -4.81 -2.97}

^{Net Working capital: -13157531.00 294248.00}

^{Cash Ratio: 0.02 0.01}

^{Quick Ratio: 0.07 0.08}

^{Current ratio: 0.77 1.03}

^{Receivables Turnover: 77.47 165.53}

^{Leverage Ratio: -167.82 6.10}

^{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 LIMITED IN VIEW} ^{OF THE
FOLLOWING:}

^{NET WORTH:}

^{THE
BALANCE SHEET WAS CONSIDERED INADEQUATE WITH NEGATIVE NET WORTH} ^{AND AMOUNTED
TO S$-400,484 IN FY 2006 AS COMPARED TO THE NET WORTH OF} ^{S$2,812,009
IN FY 2005. A FALL OF 1.14 TIMES FROM THE PRIOR FINANCIAL} ^YEAR.

^{THIS
WAS DUE TO THE INCREASE OF ACCUMULATED LOSSES AND AMOUNTED TO} ^{S$-3,400,484
(2005: S$-187,991); A RISE OF 17.09 TIMES FROM THE PRIOR} ^{FINANCIAL
YEAR.}

^LEVERAGE:

^{IN
THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER CREDITORS} ^{WHICH MADE
UP 59.76% (2005: 67.55%) OF THE TOTAL CURRENT LIABILITIES} ^{AND
AMOUNTED TO S$34,681,081 (2005: S$7,424,598). THE BREAKDOWN WAS} ^AS
FOLLOWS:

^{* FAIR VALUE DERIVATIVE - 2006: S$26,401
(2005: NIL)}

^{* OTHER PAYABLES - 2006: S$6,505,079 (2005:
S$724,598)}

^{* AMOUNTS DUE TO IMMEDIATE AND ULTIMATE
HOLDING COMPANY (NONTRADE)}

^{2006:
S$16,000,000 (2005: NIL)}

^{* AMOUNTS DUE TO RELATED CORPORATIONS
(NONTRADE) - 2006: S$12,149,601}

^{(2005:
S$6,700,000)}

^{TRADE
PAYABLES FELL BY 19.30% AND AMOUNTED TO S$2,331,836 (2005:} ^{S$2,889,476).
BREAKDOWN WAS AS FOLLOWS:}

^{* TRADE PAYABLES - 2006: S$898,545 (2005:
S$524,747)}

^{* AMOUNTS DUE TO EMMEDIATE AND ULTIMATE
HOLDING COMPANY (TRADE)}

^{2006:
S$478,500 (2005: S$196,331)}

^{* AMOUNTS DUE TO RELATED CORPORATIONS (TRADE)
- 2006: S$954,791}

^{(2005:
S$2,168,398)}

^{DUE
TO BANKS ROSE BY 25.20 TIMES AND AMOUNTED TO S$16,443,307 (2005:}

^{S$627,586).
BREAKDOWN WAS AS FOLLOWS:}

^{* BANK OVERDRAFTS (SECURED) - 2006: S$597,393
(2005: NIL)}

^{* SECURED BANK LOANS - 2006: S$2,236,702
(2005: NIL)}

^{* TRUST RECEIPTS (SECURED) - 2006:
S$13,609,212 (2005: S$627,586)}

^{IN
ALL, LEVERAGE RATIO IS SIGNIFICANT AT -167.82 TIMES (2005: 6.10} ^{TIMES) AS A
RESULT OF A SUBSTANTIALLY GREATER TOTAL LIABILITIES AND} ^{NEGATIVE
TOTAL EQUITY.}

^LIQUIDITY:

^{IN
GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS WEAK AS SEEN FROM} ^{THE NET WORKING
CAPITAL AND LIQUIDITY RATIOS. BOTH CURRENT AND QUICK} ^{RATIOS FELL TO
0.77 TIMES (2005: 1.03 TIMES) AND 0.07 TIMES (2005:} ^{0.08 TIMES)
RESPECTIVELY.}

^{SIMILARLY,
NET WORKING CAPITAL DEFICIT WORSENED BY 45.72 TIMES AND} ^{AMOUNTED TO
S$-13,157,531 IN FY 2006 AS COMPARED TO CAPITAL SURPLUS OF} ^{S$294,248
IN FY 2005.} ^{CASH AND CASH EQUIVALENTS ROSE BY 7.25 TIMES AND
AMOUNTED TO S$899,968} ^{(2005: S$109,126). BREAKDOWN WAS AS FOLLOWS:}

^{* CASH AT BANK AND IN HAND - S$831,900
(S$41,126)}

^{* DEPOSIT WITH FINANCIAL INSTITUTION - 2006:
S$68,068 (2005:}

^S$68,000)

^{THE EFFECTIVE
INTEREST RATE RELATING TO DEPOSIT WITH FINANCIAL} ^{INSTITUTION
AT THE BALANCE SHEET DATE IS 0.1% (2005: 0.1%) PER ANNUM.} ^{INTEREST
RATE REPRICES WITHIN ONE YEAR.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE
OF 7.89 TIMES FROM S$1,703,899 IN FY 2005} ^{TO S$15,146,715 IN FY 2006. HOWEVER,
NET LOSS WORSEND BY 4.41 TIMES} ^{AND AMOUNTED TO S$3,212,493 IN FY
2006 AS COMPARED TO THE NET LOSS OF} ^{S$593,671 IN FY 2005. HENCE, NET
MARGIN IS IN NEGATIVE REGION AND} ^{AMOUNTED TO 21.21% IN FY 2006 AS
COMPARED TO NEGATIVE NET MARGIN OF} ^{34.84% IN FY 2005.}

^{REVENUE
CONSISTED OF:}

^{* SALES OF GOODS - 2006: S$11,920,374 (2005:
S$1,703,899)}

^{* REVENUE FROM RNTAL OF MACHINERY AND
EQUIPMENT - 2006: S$3,209,941}

^(2005:
NIL)

^{* RENDERING SERVICES - 2006: S$16,400 (2005:
NIL)}

^{DEBT SERVICING:}

^{DEBT
SERVICING PROBLEMS IS LIKELY TO BE ANTICIPATED DUE TO THE}

^{FOLLOWING
REASONS :}

^{1)
SUBSTANTIAL NEGATIVE NET WORTH}

^{2)
LOW LIQUIDITY}

^{3)
SUBSTANTIAL LEVERAGE}

^{NOTES
TO FINANCIAL STATEMENTS:}

^{GOING
CONCERN:}

^{* THE COMPANY INCURRED A LOSS OF S$3,212,493
DURING THE YEAR ENDED} ^{31/12/2006, AND AS OF THE DATE, THE COMPANY
HAS A NET ASSET DEFICIENCY} ^{OF S$400,484. NOTWITHSTANDING THESE, THE
FINANCIAL STATEMENTS OF THE} ^{COMPANY HAVE BEEN PREPARED ON A GOING
CONCERN BASIS, AS THE IMMEDIATE} ^{AMD ULTIMATE HOLDING COMPANY HAS
UNDERTAKEN TO PROVIDE CONTINUING} ^{FINANCIAL SUPPORT TO ENABLE THE
COMPANY TO CONTINUE TO OPERATE AS A} ^{GOING CONCERN IN THE FORESEEABLE
FUTURE AND TO MEET ITS LIABILITIES AS} ^{AND WHNE THEY FALL DUE.} ^{FINANCIAL
LIABILITIES:}

^{* TRUST RECEIPTS TOTALLING OF S$3,736,588
(2005: NIL) ARE TAKEN UP BY}

^{THE
COMPANY ON BEHALF OF A RELATED CORPORATION. INTERESTS ON THESE}

^{TRUST
RECEIPTS ARE REIMBURSEABLE BY THE RELATED CORPORATION.}

^{THE
BANK LOANS, BANK OVERDRAFTS AND TRUST RECEIPTS ARE SECURED AS} ^FOLLOWS:

^{* FIXED CHARGES ON CERTAIN PALNT AND MACHINERY
OF THE COMPANY WITH}

^{CARRYING
AMOUNTS OF S$7,605,000 (2005: S$627,586)}

^{* FIXED AND FLOATING CHARGES ON INVENTORIES OF
THE COMPANY WITH}

^{CARRYING
AMOUNTS OF S$12,393,432 (2005: NIL)}

^{* LEGAL MORTGAGES OVER THE DEVELOPMENT
PROPERTIES OF A RELATED}

^{CORPORATION
AMOUNTING TO S$1,000,269 (2005: NIL)}

^{* FIXED DEPOSITS OF RELATED CORPORATIONS
AMOUNTING TO S$2,950,000}

^(2005:
NIL)

^{* CORPORATE GUARANTEES FROM THE IMMEDIATE ND
ULTIMATE HOLDING}

^COMPANY;
AND

^{* PLEDGE OF CERTAIN QUOTED SHARES HELD BY A
DIRECTOR OF THE COMPANY}

^COMMITMENTS:

^{* CAPITAL EXPENDITURE CONTRACTED BUT NOT
PROVIDED FOR IN THE}

^{FINANCIAL
STEMENTS - 2006: NIL (2005: S$647,036)}

BACKGROUND/OPERATION

^{THE
COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{04/01/1979
AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS} ^{NAMESTYLE AS
"GRAND HARDWARE & MACHINERY PTE LTD"}

^{SUBSEQUENTLY
ON 30/09/2005, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE} ^{OF
"E-HUB METALS PTE. LTD.".}

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

^{PRINCIPAL
ACTIVITIES:}

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

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

^{1)
NON-FERROUS MEAL FOUNDRIES FOUNDRY, CHEMICAL TREATMENT PLANT,}

^{ELECTROPLATING
AND DIE-CASTING ETC.}

^{2)
RECYCLING OF METAL WASTE AND SCRAP, RECYCLE, BUY, SELL, TRADE,}

^{EXPORT
OR DEAL IN SCRAP, METAL OR OTHERWISE.}

^{THE
COMPANY WAS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE} ^{CLASSIFICATION
OF: SCRAP METALS}

^{DURING
THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL} ^{ACTIVITIES ARE
CONSIST OF RECOVERY AND PROCESSING OF FERROUS AND NON-} ^{FERROUS
METALS, MELTING AND REFINING OF COPPER, AND RENTAL SERVICING} ^{AND
SALE OF MACHINERY AND EQUIPMENT.}

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

^{BACKGROUND
(IMMEDIATE & ULTIMATE HOLDING COMPANY):} ^{ENVIRO-HUB IS TODAY, ONE OF THE
LARGEST PROVIDERS OF TOTAL} ^{ENVIRONMENTAL MANAGEMENT SOLUTIONS AND
SERVICES FOR THE GLOBAL} ^{ELECTRICAL, ELECTRONIC AND EQUIPMENT
INDUSTRIES.}

^{IT PROVIDES A
WHOLE SPECTRUM OF SERVICES SUCH AS MANAGEMENT AND} ^{RECYCLING OF
ELECTRONIC WASTE, RECOVERY AND REFINING OF PLATINUM GROUP} ^{METALS,
FERROUS AND NON-FERROUS METALS, PLASTICS AND CHEMICALS, COPPER} ^{SMELTING
AND REFINING AS WELL AS RECOVERY AND RECYCLING OF ENGINEERING}

^{PLASTICS
AND MANUFACTURING OF IC TRAYS USING RECYCLED ENGINEERING} ^PLASTICS.

^ACTIVITIES:

^{* ONE OF THE LEADING METALS RECYCLER IN
SINGAPORE.}

^{* COPPER SMELTING & REFINING AND RECOVERY
& PROCESSING OF FERROUS AND}

^{NON-FERROUS
METALS.}

^PRODUCTS:

^{NON-FERROUS
SCRAP METALS:}

^{* COPPER}

^{* BRASS}

^{* ALUMINUM}

^{* NICKEL}

^{FERROUS
SCRAP METAL}

^{* STAINLESS STEEL}

^{* STEEL}

^{MARKET
PRESENCE:}

^{* NORTH AMERICA}

^{* SOUTH AMERICA}

^{* WESTERN EUROPE}

^{* EASTERN EUROPE}

^{* EASTERN ASIA}

^{* SOUTHEAST ASIA}

^{* MID EAST}

^{* AFRICA}

^{* OCEANIA}

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

^{NUMBER
OF EMPLOYEES:}

^{* 50 - AS OF 2006}

^{THE
COMPANY'S IMMEDIATE AND ULTIMATE HOLDING COMPANY IS ENVIRO-HUB} ^{HOLDINGS LTD.,
INCORPORATED IN REPUBLIC OF SINGAPORE.}

^{REGISTERED
AND BUSINESS ADDRESS:}

^{20
GUL WAY}

^{SINGAPORE
629196}

^{DATE
OF CHANGE OF ADDRESS: 20/04/2006}

^{-
RENTED PREMISE}

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

^LIMITED

^{WEBSITE:
http://www.enviro-hub.com}

^{EMAIL : info@enviro-hub.com}

MANAGEMENT

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

^{1)
KWEK NGAK BOON, A SINGAPOREAN}

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

^{BESTWOOD
CONSTRUCTION [PTE] LTD}

^{2)
VENKATESHA MURTHY, A SINGAPORE PERMANENT RESIDENT}

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

^{CIMELIA
RESOURCE RECOVERY PTE. LTD.}

^{3)
CHEW BAN CHUAN VICTOR, A SINGAPOREAN}

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

^ABTERRA
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

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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