MIRA INFORM REPORT

Report Date :

26.05.2008

IDENTIFICATION DETAILS

Name :	SUMITOMO CORPORATION ASIA PTE. LTD.
Registered Office :	^20 Cecil Street ^#23-01/08 & #24-01/08 ^Equity Plaza, 049705
Country :	Singapore
Financials (as on) :	31.03.2007
Date of Incorporation :	^27.04.1991
Com. Reg. No.:	^199101899M
Legal Form :	^Pte Ltd
Line of Business :	Integrated Business Enterprise ("Sogo Jigyoo Gaisha")

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 :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

SUMITOMO CORPORATION ASIA PTE. LTD.

Line Of Business 

INTEGRATED BUSINESS ENTERPRISE ("SOGO JIGYOO GAISHA")

Parent Company

SUMMIT GLOBAL MANAGEMENT II B.V.

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2007

COMPANY

Sales : US$ 3,241,767,000

Networth : US$ 107,541,000

Paid-Up Capital : US$ 27,714,000

Net result : US$ 35,301,000

Net Margin(%) : 1.09

Return on Equity(%) : 32.83

Leverage Ratio : 3.91

COMPANY IDENTIFICATION

^{Subject Company : SUMITOMO CORPORATION ASIA PTE. LTD.}

^{Former Name : -}

^{Business Address : 20 CECIL STREET}

^{#23-01/08 & #24-01/08}

^{EQUITY PLAZA}

^{Town : SINGAPORE}

^{Postcode : 049705}

^{Country : Singapore}

^{Telephone : 6533 7722}

^{Fax : 6533 9693/ 6535 8244}

^{ROC Number : 199101899M}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 27/04/1991}

^{Previous Legal Form : -}

^{Summary year : 31/03/2007}

^{Sales :3,241,767,000}

^{Networth : 107,541,000}

^{Capital : 2,000,000}

^{Paid-Up Capital : 27,714,000}

^{Employees : 170}

^{Net result : 35,301,000}

^{Share value : 1}

^{Auditor : KPMG}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 47,000,000 SGD 47,000,000.00}

^{PAID-UP ORDINARY - SGD 47,000,000.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 27/04/1991}

PRINCIPAL(S)

^{MASAO TETSUYA G5747157W Managing Director}

DIRECTOR(S)

^{MASAO TETSUYA G5747157W Director}

^{Appointed on : 07/05/2004}

^{Street : 10 CUSCADEN WALK}

^#25-02

^{FOUR SEASONS PARK}

^{Town: SINGAPORE}

^{Postcode: 249693}

^{Country: Singapore}

^{MASAO TETSUYA G5747157W Managing Director}

^{Appointed on : 07/05/2004}

^{Street : 10 CUSCADEN WALK}

^#25-02

^{FOUR SEASONS PARK}

^{Town: SINGAPORE}

^{Postcode: 249693}

^{Country: Singapore}

^{CHAN LAI YIN S7480587F Company Secretary}

^{Appointed on : 01/07/2006}

^{Street : 22 SIMEI STREET 1}

^#04-02

^{MELVILLE PARK}

^{Town: SINGAPORE}

^{Postcode: 529945}

^{Country: Singapore}

^{LIN MOI HEYANG S2750922C Company Secretary}

^{Appointed on : 20/04/2007}

^{Street : 210 ANG MO KIO AVENUE 3}

^#07-1614

^{Town: SINGAPORE}

^{Postcode: 560210}

^{Country: Singapore}

^{KOJI SHIRAISHI G5713682R Director}

^{Appointed on : 01/04/2007}

^{Street : 207 RIVER VALLEY ROAD}

^#02-51

^{Town: SINGAPORE}

^{Postcode: 238275}

^{Country: Singapore}

^{MICHIO OGIMURA G5866764T Director}

^{Appointed on : 01/04/2008}

^{Street : 7 ORANGE GROVE ROAD}

^#040178

^{TREETOPS EXCUTIVE RESIDENCES}

^{Town: SINGAPORE}

^{Postcode: 258355}

^{Country: Singapore}

^{SHINYA MATSUZAWA G6074974X Director}

^{Appointed on : 01/04/2008}

^{Street : 11 ORCHARD TURN}

^{Town: SINGAPORE}

^{Postcode: 238800}

^{Country: Singapore}

^{TOSHIRO TAKAYAMA TH0081536 Director}

^{Appointed on : 01/04/2008}

^{Street : 28 THANH NIEN ROAD, APT NO. 62}

^{HANOI LAKE VIEW}

^{TAY HO DISTRICT}

^{Town: HANOI}

^{Postcode: -}

^{Country: Viet Nam}

^{YASUO KURODA TZ0003533 Director}

^{Appointed on : 01/04/2008}

^{Street : 1-8-12 HIGASHINAKANO}

^NAKANO-KU

^{Town: TOKYO}

^{Postcode: 164-0003}

^{Country: Japan}

^{MASATOHSI DEGUCHI TZ0133057 Director}

^{Appointed on : 01/04/2008}

^{Street : 571-1-211 YAMAOUCHI}

^{KAMAKURA-CITY}

^{Town: KANAGAWA}

^{Postcode: 247-0062}

^{Country: Japan}

^{MASAYUKI DOI TZ0533852 Director}

^{Appointed on : 01/04/2008}

^{Street : DHARMAWANGSA APARTMENT UNIT 1907}

^{JL. DARMAWANGSA VIII}

^{KEBAYORAN BARU}

^{Town: JAKARTA}

^{Postcode: 12160}

^{Country: Indonesia}

FORMER DIRECTOR(S)

^{HANAI YOSHIKAZU SH3790543}

^{JUNICHI MITSUMATA SM3828826}

^{YAMAZAKI KAZUHIKO SN9109654}

^{HISAYOSHI UNO F2538350T}

^{SHUNICHI ARAI F2065970W}

^{YOSHIO SAWAMURA F2079091K}

^{NORIO AKASHI MP4574472}

^{YOSHIKI NAKAI F2440928R}

^{MASANORI BANNO F5618892N}

^{TOSHIO MATSUKI F5645619T}

^{CHAN LILY S2668267C}

^{TAKAHIDE ENOMOTO G5561883L}

^{YOSHIYUKI MATSUOKA G5657502U}

^{YUSUKE MIURA G5689076P}

^{SABRINA RUSKIN S0185709F}

^{LIM CHOI HWEE S7330244G}

^{LIM MEE FUN S7476088J}

^{LIM KA BEE S2581084H}

^{KOJI YUZAKI F0419952U}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code: 11760}

^{CHEMICALS Code: 3970}

^{PETROLEUM PRODUCTS Code: 16350}

^{PLASTIC PRODUCTS Code: 16940}

^{STEEL PRODUCTS Code: 20410}

^{BASED ON ACRA'S RECORD}

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

^{INTEGRATED BUSINESS ENTERPRISE (SOGO JIGYOO GAISHA)}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE BANK OF TOKYO-MITSUBISHI UFJ, LTD}

^{(THE BANK OF TOKYO-MITSUBISHI, LTD)}

^{THE SUMITOMO BANK LTD}

^{THE INDUSTRIAL BANK OF JAPAN LTD}

^{AMERICAN EXPRESS BANK LTD}

ASSOCIATED COMPANY(IES)

^{WUXI KUANYU PACKAGING MATERIAL CO China}

^{PT SUMMITPLAST INTERBENUA Indonesia}

^{KINETIC ENERGY PTE LTD Singapore}

^SINGAPORE

^{SUMITRONICS ASIA PTE. LTD. Singapore}

^{31 INTERNATIONAL BUSINESS PARK}

^#05-10

^{CREATIVE RESOURCE BUILDING}

^SINGAPORE

^{SC PIPE SERVICE INC United States}

^{MARS INTERNATIONAL CO LTD Myanmar}

^{PETRO SUMMIT PTE. LTD. Singapore}

^{20 CECIL STREET}

^#17-05/07

^{EQUITY PLAZA}

^SINGAPORE

^{NEW PORT BULK TERMINAL SDN BHD Malaysia}

^{PO BOX 64, PASIR GUDANG FREE TRADE}

^ZONE

^{PASIR GUDANG}

^{PT FUMAKILLA INDONESIA Indonesia}

^{SUMMIT PETROCHEMICAL TRADING INC United States}

^{A-FOSS THAILAND LTD Thailand}

^{A-FOSS ASIA PTE LTD Singapore}

^{20 CECIL STREET}

^{23-01 & 24-01/08}

^SINGAPORE

SHAREHOLDERS(S)

^{SUMMIT GLOBAL MANAGEMENT II B.V. 47,000,000 Company}

^{Street : STRAWINSKYLAAN 917}

^{Town : AMSTERDAM}

^{Postcode : 1077XX}

^{Country : Netherlands}

FORMER SHAREHOLDER(S)

^{SUMITOMO CORPORATION 47,000,000}

^{SAWADA TOYOHARU 1}

^{MURAYAMA KANJI 1}

HOLDING COMPANY

^{SUMMIT GLOBAL MANAGEMENT II B.V. UF40823G % : 100}

SUBSIDIARY(IES)

^{SC ASIAN TUBULAR SUPPLY PTE 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: 14/08/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp 7,585,000 11,532,000}

^{Tangible Fixed Assets: 13,198,000 10,896,000}

^{Investments 18,426,000 13,946,000}

^{Total Fixed Assets: 39,209,000 36,374,000}

^{Inventories: 118,363,000 187,104,000}

^{Receivables: 362,113,000 628,141,000}

^{Cash,Banks, Securitis: 1,210,000 608,000}

^{Other current assets: 7,559,000 78,858,000}

^{Total Current Assets: 489,245,000 894,711,000}

^{TOTAL ASSETS: 528,454,000 931,085,000}

^{--- LIABILITIES ---}

^{Equity capital: 27,714,000 27,714,000}

^{Reserves: 3,531,000 1,096,000}

^{Profit & lost Account: 76,296,000 40,995,000}

^{Total Equity: 107,541,000 69,805,000}

^{Long Term Loans: 1,100,000 3,500,000}

^{L/T deffered taxes: 571,000 -}

^{Total L/T Liabilities: 1,671,000 3,500,000}

^{Trade Creditors: 290,527,000 561,604,000}

^{Due to Bank: 34,999,000 75,242,000}

^{Provisions: 5,901,000 5,705,000}

^{Other Short term Liab.: 87,815,000 215,229,000}

^{Total short term Liab.: 419,242,000 857,780,000}

^{TOTAL LIABILITIES: 420,913,000 861,280,000}

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

^{Net Sales 3,241,767,000 3,655,531,000}

^{NET RESULT BEFORE TAX: 40,813,000 23,504,000}

^{Tax : 5,512,000 4,487,000}

^{Net income/loss year: 35,301,000 19,017,000}

^{Interest Paid: 11,947,000 8,018,000}

^{Depreciation: 1,821,000 1,537,000}

^{Directors Emoluments: 582,000 666,000}

^{Wages and Salaries: 10,521,000 7,349,000}

^{Financial Income: 4,207,000 565,000}

RATIOS

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

^{Turnover per employee: 19069217.65 21503123.53}

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

^{Stock / Turnover(%): 0.04 0.05}

^{Net Margin(%): 1.09 0.52}

^{Return on Equity(%): 32.83 27.24}

^{Return on Assets(%): 6.68 2.04}

^{Net Working capital: 70003000.00 36931000.00}

^{Cash Ratio: 0.00 0.00}

^{Quick Ratio: 0.87 0.73}

^{Current ratio: 1.17 1.04}

^{Receivables Turnover: 40.21 61.86}

^{Leverage Ratio: 3.91 12.34}

^{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 OF}

^{THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 54.06% FROM US$69,805,000 IN FY 2006 TO US$107,541,000 IN FY 2007. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF US$76,296,000 (2006: US $40,995,000); A RISE OF 86.10% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 69.30% (2006: 65.47%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$290,527,000 (2006: US$561,604,000).}

^{AMOUNT DUE TO BANKS CONSIST OF:}

^{*BANK LOANS(UNSECURED) - 2007: US$24,534,000 (2006: US$72,528,000)}

^{*BANK OVERDRAFTS(UNSECURED) - 2007: US$465,000 (2006: US$1,863,000)}

^{*CURRENT PORTION OF LONG TERM LOANS - 2007: NIL (2006: US$851,000)}

^{IN THE LONG-TERM SUBJECT WAS LARGELY FINANCED BY LONG-TERM LOANS WHICH AMOUNTS TO US$1,100,000 (2006: US$3,500,000).}

^{IN ALL, LEVERAGE RATIO FELL FROM 12.34 TIMES TO 3.91 TIMES AS A RESULT OF A RISE IN TOTAL EQUITY AND A FALL IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 1.17 TIMES, FROM 1.04 TIMES AND QUICK RATIO IMPROVED TO 0.87 TIMES FROM 0.73 TIMES IN FY 2006.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 89.55% FROM US$36,931,000 IN FY 2006 TO US$70,003,000.}

^{PROFITABILITY:}

^{REVENUE POSTED A DECLINE OF 11.32% FROM US$3,655,531,000 IN FY 2006 TO US$3,241,767,000 BUT NET PROFIT ROSE BY 85.62% TO US$35,301,000 (2006: US$19,017,000). THIS COULD BE DUE TO HIGHER OTHER OPERATING INCOME OF US$10,248,000 (2006: US$2,324,000). HENCE, NET MARGIN ROSE TO 1.09% (2006: 0.52%).}

^REVENUE:

^{*SALE OF GOODS- 2007: US$3,233,018,000 (2006: US$3,651,281,000)}

^{*COMMISSION INCOME- 2007: US$8,749,000 (2006: US$4,250,000)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. HOWEVER IT IS NOTED THAT THE INTEREST COVERAGE RATIO IS LOW AT 4.41 TIMES (2006: 3.93 TIMES) WHICH NEED CAUTION.}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS WERE CLASSIFIED UNDER PRELIMINARY:}

^{*LONG TERM RECEIVABLES- 2007: US$6,967,000 (2006: US$10,698,000)}

^{*FINANCE LEASE RECEIVABLES- 2007: US$212,000 (2006: US$2,147,000)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITIES (UNSECURED):}

^{GUARANTEES TO THIRD PARTIES IN RESPECT OF AN ASSOCIATE- 2007: US}

^{$1,155,000 (2006: US$1,222,000)}

^{BANK BORROWINGS}

^{THE BANK LOANS ARE SECURED BY A LETTER OF AWARENESS FROM THE ULTIMATE HOLDING COMPANY.}

^{THE LOANS BEAR INTEREST AT RATES RANGING FROM 0.29% TO 5.60% (2006: 0.30% TO 5.20%) PER ANNUM AND THE TENURE OF THE BANK LOANS RANGE FROM OVERNIGHT BASIS TO 1 YEAR.}

^{LONG TERM LOANS}

^{*OUTSIDE PARTIES (UNSECUED) - 2007: NIL (2006: US$851,000)}

^{*RELATED PARTIES (SECURED) - 2007: US$3,500,000 (2006: US$5,900,000)}

^{LESS CURRENT PORTION:}

^{*OUTSIDE PARTIES (UNSECUED) - 2007: NIL (2006: US$851,000)}

^{*RELATED PARTIES (SECURED) - 2007: US$2,400,000 (2006: US$2,400,000)}

^{NET - 2007: US$1,100,000 (2006: US$3,500,000)}

^{THE LONG-TERM LOANS FROM RELATED COMPANIES ARE SECURED BY A CORPORATE GUARANTEE FROM THE ULTIMATE HOLDING COMPANY AND ARE REPAYABLE IN FULL ON MATURITY IN DECEMBER 2008 (2006: DECEMBER 2008). THE LOANS BEAR}

^{INTEREST AT RATES RANGING FROM 4.365% TO 4.57% (2006: 4.365% TO 4.57%) PER ANNUM.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 27/04/1991 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "SUMITOMO CORPORATION (SINGAPORE) PTE. LTD.".}

^{SUBSEQUENTLY ON 01/04/2008, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "SUMITOMO CORPORATION ASIA PTE. LTD.".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 47,000,000 SHARES OF A VALUE OF S$47,000,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

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

^{INTEGRATED BUSINESS ENTERPRISE (SOGO JIGYOO GAISHA)}

^{2) MIXED CONSTRUCTION ACTIVITIES}

^{THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: IMPORTERS AND EXPORTERS.}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT IS PRINCIPALLY ENGAGED AS AN INTEGRATED BUSINESS ENTERPRISE ("SOGO JIGYOO GAISHA").}

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

^BACKGROUND:

^{* SUBJECT IS A WELL-ESTABLISHED JAPANESE MNC ENGAGED IN INTERNATIONAL TRADE AND INVESTMENT ACTIVITIES. THEY TRADE IN A WIDE RANGE OF PRODUCTS INCLUDING CHEMICALS, PLASTICS, MACHINERY, STEEL, PETROLEUM AND MANY OTHER PRODUCTS.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:}

^{* IMPORTER AND EXPORTER OF GENERAL MERCHANDISE INVESTMENTS - TO}

^{INDUSTRIAL PROJECTS}

^{BUSINESS AREAS:}

^{* STEEL PRODUCTS}

^{- IMPORT FROM JAPAN, UNITED STATES OF AMERICA & EUROPE}

^{* MACHINERY & ELECTRONICS}

^{- MACHINERY & ELECTRIC DEPARTMENT}

^{- ELECTRONIC MATERIALS & EQUIPMENT DEPARTMENT}

^{- NON-FERROUS METALS DEPARTMENT}

^{* CHEMICALS}

^{- ORGANIC CHEMICALS DEPARTMENT}

^{- INORGANIC, AGRI-SCIENCE AND SPECIALTY CHEMICALS DEPARTMENT}

^{- MAINLY EXPORT TO ASIAN REGION}

^{* PLASTICS}

^{- SERVE ASIA PACIFIC REGION}

^{- HAS 6 JOINT VENTURE COMPANIES IN CHINA, INDONESIA, MALAYSIA,}

^{INDIA, VIETNAME AND OMAN}

^{* PETROLEUM & CARBON}

^{- CRUDE OIL}

^{- TRADE WITH ASIAN COUNTRIES (VIETNAM & MALAYSIA, AND MIDDLE EAST)}

^{- PETROLEUM PRODUCTS}

^{- TRADE WITH TAIWAN, THAILAND, VIETNAM, INDONESIA, MYANMAR AND}

^{MIDDLE EAST}

^{- FUEL OIL OPERATIONS}

^{- JOINT VENTURE OF BLENDING AND STORAGE OPERATION AT VOPAK}

^{TERMINAL IN 2001 WITH KINETIC ENERGY PTE. LTD. & HAVE ACQUIRED}

^{65% OF ITS SHARE}

^{- IMPORT FROM INDIA, MIDDLE EAST & EUROPE AND EXPORT TO VIETNAM,}

^{AUSTRALIA, CHINA, ETC}

^{- BUNKER}

^{- PROVIDES BUNKER SUPPLY SERVICES NOT ONLY TO VESSELS CALLING AT}

^{SINGAPORE BUT ALSO TO OTHER MAJOR PORTS, MAINLY FOR NEPTUNE}

^{ORIENT LINES (NOL), 'K' LINE AND MITSUI OSK LINES (MOL)}

^{TERMS OF PAYMENT:}

^{* TRADE RECEIVABLES - 2007: 30 DAYS (2006: 30 DAYS)}

^{* TRADE PAYABLES - 2007: 30 DAYS (2006: 30 DAYS)}

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

^{* JAPANESE CHAMBER OF COMMERCE & INDUSTRY}

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^{* SINGAPORE CHINESE CHAMBERS OF COMMERCE & INDUSTRY}

^{* SINGAPORE PLASTIC INDUSTRY ASSOCIATION}

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^{* SINGAPORE CHEMICAL INDUSTRY COUNCIL}

^{NUMBER OF EMPLOYEES:}

^{2007: 170}

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

^{THE COMPANY IS A SUBSIDIARY OF SUMMIT GLOBAL MANAGEMENT B.V., INCORPORATED IN THE NETHERLANDS. THE COMPANY'S ULTIMATE HOLDING COMPANY IS SUMITOMO CORPORATION, INCORPORATED IN JAPAN.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{20 CECIL STREET}

^#23-01/08

^{EQUITY PLAZA}

^{SINGAPORE 049705}

^{DATE OF CHANGE OF ADDRESS: 09/08/2000}

^{- RENTED PREMISE}

^{- PREMISE OWNED BY: D.L. PROPERTIES LTD}

^{OTHER BUSINESS ADDRESS:}

^{20 CECIL STREET}

^#24-01/08

^{EQUITY PLAZA}

^{SINGAPORE 049705}

^WEBSITE:

^{www.sumitomocorp.com.sg}

^EMAIL:

^{general@sumitomocorp.com.sg}

MANAGEMENT

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

^{1) KOJI SHIRAISHI, A JAPANESE}

^{- BASED IN SINGAPORE}

^{2) MASAO TETSUYA, A JAPANESE}

^{- BASED IN SINGAPORE}

^{3) MICHIO OGIMURA, A JAPANESE}

^{- BASED IN SINGAPORE}

^{4) SHINYA MATSUZAWA, A JAPANESE}

^{- BASED IN SINGAPORE}

^{5) TOSHIRO TAKAYAMA, A JAPANESE}

^{- BASED IN VIETNAM}

^{6) YASUO KURODA, A JAPANESE}

^{- BASED IN JAPAN}

^{7) MASATOSHI DEGUCHI, A JAPANESE}

^{- BASED IN JAPAN}

^{8) MASAYUKI DOI, A JAPANESE}

^{- BASED IN INDONESIA}

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

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