MIRA INFORM REPORT

Report Date :

27.11.2008

IDENTIFICATION DETAILS

Name :	TONG TEIK PTE LTD
Formerly Known As :	DIANY INVESTMENTS PTE LTD
Registered Office :	7 Temasek Boulevard #20-02 Suntec Tower One 038987
Country :	Singapore
Financials (as on) :	31.12.2007
Date of Incorporation :	29.04.1998
Com. Reg. No.:	199802094D
Legal Form :	Pte Ltd
Line of Business :	Trading of Rubber and Dealing in Rubber Futures

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

TONG TEIK PTE LTD

Line Of Business 

TRADING OF RUBBER AND DEALING IN RUBBER FUTURES

Parent Company

RCMA COMMODITIES ASIA PTE LTD

(PERCENTAGE OF SHAREHOLDINGS: 100.00)

Financial Elements

FY 2007

COMPANY

Sales : US$ 571,407,203

Networth : US$ 11,972,052

Paid-Up Capital : US$ 5,000,000

Net result : US$ 2,309,137

Net Margin(%) : 0.40

Return on Equity(%) : 19.29

Leverage Ratio : 4.78

COMPANY IDENTIFICATION

Subject Company :	TONG TEIK PTE LTD
Former Name :	DIANY INVESTMENTS PTE LTD (DATE OF CHANGE OF NAME:18/06/1998)
Business Address:	7 TEMASEK BOULEVARD #20-02 SUNTEC TOWER ONE
Town:	SINGAPORE
Postcode:	038987
Country:	Singapore
Telephone:	6332 2282
Fax:	6332 3788
ROC Number:	199802094D

PREVIOUS IDENTIFICATION

DIANY INVESTMENTS PTE LTD (DATE OF CHANGE OF NAME:18/06/1998)

SUMMARY

Legal Form:	Pte Ltd
Date Inc.:	29/04/1998
Summary year :	31/12/2007
All amounts in this report are in :	USD
Sales:	571,407,203
Networth :	11,972,052
Capital:	-
Paid-Up Capital:	5,000,000
Net result :	2,309,137
Share value:	1

AUDITOR: BDO RAFFLES  
 
BASED ON ACRA'S RECORD 
  NO OF SHARE CURRENCY AMOUNT 
ISSUED ORDINARY  8,500,000   SGD 8,500,000.00
PAID-UP ORDINARY   -   SGD 8,500,000.00

REFERENCES

Litigation:	No
Company status :	TRADING
Started :	29/04/1998

PRINCIPAL(S)

OEI HONG BIE @ NG KIM TJING @ HADI WIDJAJA

S2160222A

Managing Director

DIRECTOR(S)

WEE ENG HWA	S0004624H	Director
Appointed on :	01/05/2002
Street :	25 SIGLAP PLAIN
Town:	SINGAPORE
Postcode:	456014
Country:	Singapore
SOON BEE SUAN @ LOH BEE SUAN	S1620182J	Director
Appointed on :	31/10/1998
Street :	422 PASIR RIS DRIVE 6 #08-145
Town:	SINGAPORE
Postcode:	510422
Country:	Singapore
OEI HONG BIE @ NG KIM TJING @ HADI WIDJAJA	S2160222A	Director
Appointed on :	06/07/1998
Street :	27 CLAYMORE ROAD #19-02 THE CLAYMORE
Town:	SINGAPORE
Postcode:	229544
Country:	Singapore
NG SWAN CHU @ LINDA SOEWARNI WIDJAJA	S2165246F	Director
Appointed on :	01/02/2000
Street :	18 JALAN TANAH PUTEH
Town:	SINGAPORE
Postcode:	457341
Country:	Singapore
CHAN SIEW HONG	S1459262H	Director
Appointed on :	03/05/2004
Street :	287B JURONG EAST STREET 21 #18-338
Town:	SINGAPORE
Postcode:	602287
Country:	Singapore
CHRISTIAN TOLLKUEHN	S6961341A	Director
Appointed on :	13/01/2003
Street :	87 HILLVIEW AVENUE #10-09 THE PETALS
Town:	SINGAPORE
Postcode:	669623
Country:	Singapore
NG WEI SAN @ HASAN WIDJAJA @ WILSON HASAN WIDJAJA	S2176076E	Director
Appointed on :	19/01/2007
Street :	33 WATTEN DRIVE WATTEN ESTATE
Town:	SINGAPORE
Postcode:	287668
Country:	Singapore
OEI HONG BIE @ NG KIM TJING @ HADI WIDJAJA	S2160222A	Managing Director
Appointed on :	09/01/2003
Street :	27 CLAYMORE ROAD #19-02 THE CLAYMORE
Town:	SINGAPORE
Postcode:	229544
Country:	Singapore
NG SWAN CHU @ LINDA SOEWARNI WIDJAJA	S2165246F	Managing Director
Appointed on :	20/04/2006
Street :	18 JALAN TANAH PUTEH
Town:	SINGAPORE
Postcode:	457341
Country:	Singapore

FORMER DIRECTOR(S)

FRANS ANDREW DE JONG

F5512604Q

ACTIVITY(IES)

Activity Code:	18680	RUBBER BROKERS And DEALERS
Activity Code:	18660	RUBBER - CRUDE
Activity Code:	17190	PLYWOOD And VENEERS - WHSLE And MFRS
Activity Code:	21720	TIMBER EXPORTERS And IMPORTERS

 
ASED ON ACRA'S RECORD 
1) WHOLESALE OF RUBBER (INCLUDING RUBBER BROKERS)

CHARGES

	AVAILABLE
Date:	07/09/2006
Amount:	0
Comments :	CHARGE NO: C200606035 AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED

	NOT AVAILABLE
Date:	19/10/1999
Amount:	0
Comments :	CHARGE NO: 199904522 (DISCHARGED - 28/05/2002) AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

	AVAILABLE
Date:	16/10/1998
Amount:	0
Comments :	CHARGE NO: 199805322 AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): FORTIS BANK S.A./N.V.

	NOT AVAILABLE
Date:	11/09/1998
Amount:	0
Comments :	CHARGE NO: 199804700 (DISCHARGED - 26/02/2003) AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): CORPORATIEVE CENTRALE RAIFFEISEN - BOERENLEEBANK

	AVAILABLE
Date:	03/09/1998
Amount:	0
Comments :	CHARGE NO: 199804592 AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): FORTIS BANK S.A./N.V

	AVAILABLE
Date:	14/11/2000
Amount:	0
Comments :	CHARGE NO(S): 200005484/ 20005485/ 20005486/ 20005487 AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): FOPTIS BANK (NEDERLAND) N.V. SINGAPORE BRANCH

BANKERS

FORTIS BANK S.A./N.V.

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED

ASSOCIATED COMPANY(IES)

SINGAPORE COMMODITY EXCHANGE LTD Site Address :	79 ROBINSON ROAD #14-01 C P F BUILDING
	SINGAPORE
	0106
	Singapore

SHAREHOLDERS(S)

RCMA COMMODITIES ASIA PTE LTD

8,500,000

Company

Street :	7 TEMASEK BOULEVARD #20-02 SUNTEC TOWER ONE
Town:	SINGAPORE
Postcode:	038987
Country:	Singapore

HOLDING COMPANY

RCMA COMMODITIES ASIA PTE LTD

199801641W

100%

PAYMENT HISTORY AND EXPERIENCES

Trade Morality:	AVERAGE
Liquidity :	SUFFICIENT
Payments :	REGULAR
Trend :	DOWNWARD
Financial Situation:	AVERAGE

FINANCIAL ELEMENTS

Audit Qualification:	UNQUALIFIED (CLEAN) OPINION	UNQUALIFIED (CLEAN) OPINION	UNQUALIFIED (CLEAN) OPINION
Date Account Lodged:	06/05/2008
Balance Sheet Date:	31/12/2007	31/12/2006	31/12/2005
Number of weeks:	52	52	52
Consolidation Code:	COMPANY	COMPANY	COMPANY

--- ASSETS
Tangible Fixed Assets:	383,310	241,724	183,831
Investments	18,972	26,030	26,030
Total Fixed Assets:	402,282	267,754	209,861
Inventories:	16,537,506	12,524,835	9,525,002
Receivables:	52,154,642	24,934,817	30,913,666
Short Term Fin. Assets:	-	-	1,209,982
Cash,Banks, Securitis:	73,552	122,114	59,407
Other current assets:	45,906	27,991	224,561
Total Current Assets:	68,811,606	37,609,757	41,932,618
TOTAL ASSETS:	69,213,888	37,877,511	42,142,479
--- LIABILITIES
Equity capital:	5,000,000	5,000,000	5,000,000
Profit & lost Account:	6,972,052	6,062,915	1,788,897
Total Equity:	11,972,052	11,062,915	6,788,897
Other long term Liab.:	21,020	41,665	-
Total L/T Liabilities:	21,020	41,665	-
Trade Creditors:	23,388,852	9,503,700	3,090,151
Short term liabilities:	19,326	20,655	-
Due to Bank:	31,226,613	15,558,023	32,037,754
Provisions:	304,304	287,909	34,683
Other Short term Liab.:	1,132,228	649,425	12,910
Total short term Liab.:	57,220,816	26,772,931	35,353,582
Prepay. & Def. charges:	1,149,493	753,219	178,084
TOTAL LIABILITIES:	57,241,836	26,814,596	35,353,582
--- PROFIT & LOSS ACCOUNT
Net Sales	571,407,203	578,368,904	347,819,164
Gross Profit:	9,466,760	12,536,942	2,042,558
NET RESULT BEFORE TAX:	2,682,470	5,547,120	-1,182,340
Tax :	373,333	273,102	272,373
Net income/loss year:	2,309,137	5,274,018	-909,967
Interest Paid:	2,753,395	2,762,428	760,838
Depreciation:	-	-	115,666
Dividends:	1,400,000	1,000,000	-
Directors Emoluments:	909,140	1,128,206	557,467
Purchases,Sces & Other Goods:	561,940,443	565,831,962	345,776,606
Wages and Salaries:	2,035,576	1,996,283	884,793
Financial Income:	469,948	200,004	122,321

RATIOS

Date Account Lodged:	31/12/2007	31/12/2006	31/12/2005
Net result / Turnover(%):	0	0.01	-0
Fin. Charges / Turnover(%):	0	0	0
Stock / Turnover(%):	0.03	0.02	0.03
Net Margin(%):	0.4	0.91	-0.26
Return on Equity(%):	19.29	47.67	-13.4
Return on Assets(%):	3.34	13.92	-2.16
Dividends Coverage:	1.65	5.27
Net Working capital:	11590790	10836826	6579036
Cash Ratio:	0	0	0
Quick Ratio:	0.91	0.94	0.88
Current ratio:	1.2	1.4	1.19
Receivables Turnover:	32.86	15.52	32
Leverage Ratio:	4.78	2.42	5.21

^{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}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

THE FINANCIAL CONDITION OF THE COMPANY WAS DEEMED TO BE FAIR IN VIEW OF THE FOLLOWING: 
 
NET WORTH: 
THE BALANCE SHEET WAS CONSIDERED PASSALBLE WITH NET WORTH RISING BY 8.22%, AMOUNTING TO US$11,972,052 (2006: US$11,062,915). THIS WAS ATTRIBUTED BY A RISE IN RETAINED PROFITS OF 15.00%, TOTALLING US $6,972,052 (2006: US$6,062,915). 
  
LEVERAGE:
IN THE SHORT-TERM, BANK BORROWINGS (CLASSIFIED UNDER AMOUNT DUE TO BANKS) COMPRISED OF 54.57% (2006: 58.11%) OF THE TOTAL CURRENT LIABILITIES, ACCOUNTING FOR US$31,226,613 (2006: US$15,558,023). 
  
THE AMOUNT DUE TO BANKS COMPRISED OF:
* BANK OVERDRAFTS (SECURED) - 2007: US$8,385,592 (2006: US 
$3,982,793) 
* BILLS PAYABLES (SECURED) - 2007: US$10,933,108 (2006: US$8,810,558) 
* BANK LOANS (FACTORING) - 2007: US$11,907,913 (2006: US$2,764,672)
 
TRADE PAYABLES ROSE SHARPLY BY 1.46 TIMES TO US$23,388,852 (2006: US 
$9,503,700) AND COMPRISED OF THE FOLLOWING:  
*TRADE PAYABLES - 2007: US$23,174,209 (2006: US$9,479,334) 
*DUE TO A RELATED COMPANY - 2007: US$214,643 (2006: NIL) 
*DUE TO A RELATED PARTY - 2007: NIL (2006: US$24,366)
  
THE LEVERAGE RATIO INCREASED NOTABLY TO 4.78 TIMES (2006: 2.42 TIMES) AS A RESULT OF A MORE THAN PROPORTIONATE RISE IN TOTAL LIABILITIES THAN IN TOTAL EQUITY. A LOWER RATIO WOULD BE MORE DESIRABLE AS THE LOWER THE RATIO, THE GREATER THE FINANCIAL SAFETY AND OPERATING FREEDOM FOR THE COMPANY. 
 
LIQUIDITY: 
THE OVERALL LIQUIDITY SITUATION OF THE COMPANY WAS FAIRLY HEALTHY WITH NET WORKING CAPITAL RISING BY 6.96%, AMOUNTING TO US$11,590,790 (2006: US$10,836,826). 
  
BOTH CURRENT AND QUICK RATIOS REGISTERED LOWER AT 1.20 TIMES (2006:1.40 TIMES) AND 0.91 TIMES (2006: 0.94 TIMES) RESPECTIVELY.
 
IN ADDITION, CASH AND CASH EQUIVALENTS WAS LOWER AT US$73,552 (2006: US$122,114), DOWN BY 39.77%.  
 
PROFITABILITY: 
REVENUE FELL BY 1.20%, ACCOUNTING FOR US$571,407,203 (2006: US $578,368,904). NET PROFIT ALSO DROPPED BY 56.22% TO US$2,309,137 (2006: US$5,274,018). 
 
AS A RESULT, NET MARGIN WAS LOWER AT 0.40% (2006: 0.91%). 
  
REVENUE COMPRISED OF:
*SALES - 2007: US$571,729,122 (2006: US$574,437,419) 
*GAIN ON FOB CONTRACTS - 2007: US$3,668,954 (2006: US$5,731,476) 
*UNREALISED LOSS ON OPEN CONTRACTS - 2007: US$-201,289 (2006: US$- 
1,804,474)  
*(LOSS)/ GAIN ON PHYSICAL CONTRACTS - 2007: US$-3,789,584 (2006: US
$4,483) 
  
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 COLELCTION PERIOD WAS LENGTHENED TO 33 DAYS (2006: 16 DAYS).
 
NOTES TO THE FINANCIAL STATEMENTS: 
 
BANK BORROWINGS: 
THE COMPANY AND ITS RELATED CORPORATIONS HAVE ENTERED INTO A FACILITIES AGREEMENT WITH SEVERAL BANKS WHEREBY TRADE FINANCING, CLUB RECEIVABLE PURCHASE FACILITY AND/OR OTHER CREDIT FACILITIES IN THE AGGREGATE AMOUNT OF US$69.5 MILLION (2006: US$54.5 MILLION) WERE GRANTED TO THE COMPANY. 
 
THE COMPANY AND ITS RELATED CORPORATIONS, NAMED AS CO-DEBTORS UNDER THIS AGREEMENT, ARE JOINTLY AND SEVERALLY LIABLE FOR ALL SUMS PAYABLE UNDER THE PROVISIONS OF THIS AGREEMENT. 
 
TRADE RECEIVABLES OF US$13,860,122 (2006: US$3,061,327) HAVE BEEN FACTORED TO BANKS WITH RECOURSE FOR BANK LOANS OF US$11,907,913 92006: US$2,764,672). THESE BANK LOANS BEAR AN EFFECTIVE INTEREST RATE OF 5.85% (2006: 6.49%) PER ANNUM. THE AVERAGE MATURITY PERIOD OF RECEIVABLES FACTORED IS 3 MONTHS. 
  
THE BANK FINANCING AND OTHER CREDIT FACILITIES ARE SECURED BY FIXED AND FLOATING CHARGES OVER THE ASSETS OF THE COMPANY AND SUPPORTED BY CORPORATE GUARANTEE FROM THE HOLDING COMPANY. THE RECOURSE IN RESPECT OF CLUB RECEIVABLE PURCHASE FACILITY SHALL BE SECURED BY THE FOLLOWING: 
(I) A DEBENTURE OVER ALL THE COMPANY'S ASSETS (RANKING BEHIND THE 
CURRENTLY EXISTING DEBENTURE FOR AS LONG AS THE SAME REMAIN IN FORCE);
(II) CREDIT INSURANCE POLICY; AND 
(III) ANY OTHER DOCUMENTATION IN FORM AND SUBSTANCE SATISFACTORY TO 
THE BANKS.

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 29/04/1998 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "DIANY INVESTMENTS PTE LTD". 
 
SUBSEQUENTLY ON 18/06/1998, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "TONG TEIK PTE LTD". 
 
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 8,500,000 SHARES OF A VALUE OF S$8,500,000.
 
PRINCIPAL ACTIVITIES: 
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF: 
1) WHOLESALE OF RUBBER (INCLUDING RUBBER BROKERS)
 
THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: RUBBER - CRUDE. 
 
DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITIES 
OF THE COMPANY ARE THOSE OF TRADING OF RUBBER AND DEALING IN RUBBER
FUTURES. 
 
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED: 
  
ACTIVITIES:
* LEADING TRADING COMPANY FOR NATURAL RUBBER MARKETS WORLDWIDE 
   
PRODUCTS AND SERVICES: 
* CRUDE RUBBER 
* RUBBER
* RUBBER PRODUCTS 
* SYNTHETICS, SYNTHETIC PRODUCTS & SERVICES 
 
BRANDS: 
* TONG TEIK
  
TERMS OF PAYMENT: 
* TRADE RECEIVABLES: 30 TO 60 DAYS 
* TRADE PAYABLES - 30 TO 60 DAYS
 
SUBJECT IS A MEMBER OF THE FOLLOWING ENTITY:  
* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE 
* SINGAPORE TIMBER ASSOCIATION 
 
QUALITY ASSESSMENT:
* ISO 9001 
 
NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL 
 
TEH COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF RCMA COMMODITIES ASIA PTE 
LTD, A COMPANY INCORPORATED IN SINGAPORE. 
 
NUMBER OF EMPLOYEES (31 DECEMBER):  
* COMPANY - 2005: 28 (2004: 30)
 
REGISTERED AND BUSINESS ADDRESSES: 
7 TEMASEK BOULEVARD 
#20-02 SUNTEC TOWER ONE 
SINGAPORE 038987
DATE OF CHANGE OF ADDRESS: 01/10/2002 
- RENTED PREMISE 
- PREMISE OWNED BY: SINGAPORE TONG TEIK (PRIVATE) LIMITED. 
 

YOUR PROVIDED ADDRESS:
7 TEMASEK BOULEVARD 
#02-02 SUNTEC TOWER ONE  
SINGAPORE 038987 
- INCORRECT UNIT NUMBER; THE CORRECT UNIT NUMBER IS #20-02
 
WEBSITE: 
http://www.rcma-rubber.com (PARENT COMPANY'S WEBSITE) 
 
EMAIL: 
stt@tongteik.com.sg
trading@tongteik.com.sg

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE: 
 
1) CHAN SIEW HONG MS, A SINGAPOREAN 
 - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.
 
2) SOON BEE SUAN @ LOH BEE SUAN, A SINGAPOREAN 
 - HOLDS OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE:  
 SINGAPORE TONG TEIK (PRIVATE) LIMITED 
  
3) OEI HONG BIE @ NG KIM TJING @ HADI WIDJAJA, A SINGAPORE PERMANENT
 RESIDENT 
 - HOLDS OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE:  
 SINGAPORE TONG TEIK (PRIVATE) LTD 
 NEW CONTINENT ENTERPRISES (PRIVATE) LIMITED 
 RCMA COMMODITIES ASIA PTE LTD
  
4) NG SWAN CHU @ LINDA SOEWARNI WIDJAYA, A SINGAPORE PERMANENT 
 RESIDENT 
 - HOLDS OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE:  
 NEW CONTINENT ENTERPRISES (PRIVATE) LIMITED
 RCMA COMMODITIES ASIA PTE LTD 
 R1 INTERNATIONAL PTE LTD 
  
5) NG WEI SAN @ HASAN WIDJAJA @ WILSON HASAN WIDJAJA, A SINGAPORE 
 PERMANENT RESIDENT
 - HOLDS OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE: 
 SINGAPORE TONG TEIK (PRIVATE) LTD  
 NEW CONTINENT ENTERPRISES (PRIVATE) LIMITED 
 VITRA COMMODITIES PTE LTD
 
6) CHRISTIAN TOLLKUEHN, A SINGAPORE PERMANENT RESIDENT 
 - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.

GENERAL COMMENTS

Singapore’s Country Rating 2008

Investment Grade

IN SINGAPORE, THE POLITICAL AND ECONOMIC SITUATION IS VERY GOOD. A QUALITY BUSINESS ENVIRONMENT HAS A POSITIVE INFLUENCE ON CORPORATE PAYMENT BEHAVIOUR. CORPORATE DEFAULT PROBABILITY IS VERY LOW ON AVERAGE.

ECONOMIC GROWTH REMAINED STRONG IN 2007 AND IN Q1 2008 (6.7%) THANKS TO A SHARP INCREASE IN CONSUMPTION SPURRED BY A BRIGHT EMPLOYMENT PICTURE, RISING REAL WAGES, AND A POSITIVE WEALTH EFFECT PRODUCED BY RISING PROPERTY PRICES. IN THIS CONTEXT, BANKRUPTCIES CONTINUE TO DECLINE, AS REFLECTED BY THE FAVOURABLE COFACE PAYMENT INCIDENT INDEX TREND. SINGAPORE MOREOVER BOASTS THE BEST GOVERNANCE IN ASIA THANKS TO AN EFFECTIVE LEGAL SYSTEM AND A GOOD LEVEL OF FINANCIAL TRANSPARENCY.

HOWEVER, A GROWTH SLOWDOWN IS EXPECTED FOR 2008 (4.5%) AMID WEAKER DEMAND GROWTH IN THE UNITED STATES, SINGAPORE'S NUMBER TWO TRADING PARTNER. THE FOREIGN TRADE CONTRIBUTION TO GROWTH WILL THUS DECLINE ESPECIALLY WITH EXPORTS REPRESENTING 210 PER CENT OF GDP.

INFLATION ACCELERATED IN 2007 AND REACHED 7.5% IN MAY 2008 BECAUSE OF RISING RAW MATERIAL PRICES. INDEED, SINGAPORE IMPORTS ALMOST ALL ITS ENERGY AND FOOD. HOWEVER, FOR THE ENTIRE YEAR, INFLATION SHOULD MODERATE AND REACH 2.8%.

THE FINANCIAL SITUATION HAS REMAINED ROBUST AS THE EQUILIBRIUM OF PUBLIC SECTOR FINANCES AND THE SOLIDITY OF A BANKING SYSTEM POISED TO ADOPT BASEL II PRUDENTIAL STANDARDS ATTEST. EXTERNAL ACCOUNTS CONTINUE MOREOVER TO SHOW LARGE SURPLUSES THANKS TO GOOD PERFORMANCE IN A RANGE OF SECTORS INCLUDING ELECTRONICS, TRANSPORT, CONSTRUCTION, TOURISM, AND FINANCIAL SERVICES. THE DECLINE EXPECTED IN THE CURRENT ACCOUNT SURPLUS IN 2008 SHOULD NOT JEOPARDISE SINGAPORE'S EXCEPTIONAL FINANCIAL SOLIDITY.

UNDERPINNED BY SUBSTANTIAL FISCAL RESERVES AND A LARGE MAJORITY IN PARLIAMENT, THE PEOPLE'S ACTION PARTY OF PRIME MINISTER LEE HSIEN LOONG HAS SOUGHT AT ONCE TO MAKE THE CITY-STATE MORE ATTRACTIVE TO FOREIGN INVESTORS AND TO BOLSTER THE SPECIALISATION IN HIGH-VALUE ADDED SECTORS TO MEET THE GROWING COMPETITION FROM LOW-COST ASIAN ECONOMIES. BESIDES REDUCTIONS IN CORPORATE INCOME TAX AND TAX INCENTIVES FOR COMPANIES SETTING UP OPERATIONS IN SINGAPORE, THE GOVERNMENT CONTINUES TO PURSUE ITS INFRASTRUCTURE AND R&D INVESTMENT POLICY.

ASSETS

· THE COUNTRY HAS BEEN PURSUING AMBITIOUS DIVERSIFICATION STRATEGY, ESPECIALLY TO HIGH VALUE-ADDED SECTORS LIKE CHEMICALS, PHARMACEUTICALS, AND FINANCE.

· IT IS AMONG THE MOST ADVANCED COUNTRIES OF ASIA IN QUALITY COMPETITIVENESS TERMS.

· SINGAPORE HAS BECOME A MAJOR EXPORTER OF CAPITAL IN ASIA IN MANY ECONOMIC SECTORS —SUCH AS FINANCE, TELECOMMUNICATIONS, TRANSPORT — NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY

· THE ECONOMY HAS BENEFITED FROM THE COUNTRY'S POLITICAL STABILITY AND EXCELLENT BUSINESS CLIMATE.

WEAKNESSES

· SKILLED LABOUR IS IN SHORT SUPPLY IN THE SECTORS THE COUNTRY WISHES TO DEVELOP.

· THE AGEING POPULATION COULD ULTIMATELY UNDERMINE ECONOMIC PERFORMANCE.

· GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.

· THE VERY OPEN ECONOMY IS VULNERABLE TO A WORLD ECONOMIC DOWNTURN.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.0% IN 2Q 2008, HIGHER THAN THE 5.5% GROWTH IN 1Q 2008. NON-OIL RE-EXPORTS GREW BY 14.0% IN 2Q 2008, STRONGER THAN THE 11.0% GROWTH IN 1Q 2008. RETAIL SALES FELL BY 2.9% IN 2Q 2008. HOWEVER, THIS REPRESENTED A DECLINE OVER A RELATIVELY HIGHER BASE IN 2Q 2007(8.1% GROWTH). EXCLUDING MOTOR VEHICLES, RETAIL SALES FELL BY 1.4% IN 2Q 2008, IN CONTRAST TO THE 1.4% GROWTH IN 1Q 2008.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 11.1% IN 2Q 2008 OVER 1Q 2008.

EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 2.9%.

AFTER SEASONAL ADJUSTMENT, DOMESTIC SALES ROSE BY 4.5% IN 2Q 2008 OVER 1Q 2008.

EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 1.9%.

ON A YEAR-ON-YEAR BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 25.4% OVER THE PREVIOUS YEAR. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 4.7%. AFTER REMOVING PRICE EFFECT, THE OVERALL DOMESTIC WHOLESALE TRADE FELL BY 2.0% IN 2Q 2008 OVER 2Q 2007.

ON A QUARTER-OVER-QUARTER BASIS, MOST WHOLESALE SECTORS REPORTED HIGHER DOMESTIC SALES AFTER RECORDING SLOWER BUSINESS IN THE PREVIOUS QUARTER.

DOMESTIC SALES OF TIMBER, PAINTS AND CONSTRUCTION MATERIALS, AND INDUSTRIAL AND CONSTRUCTION MACHINERY REGISTERED INCREASES OF 22.7% AND 21.1% IN 2Q 2008.

PETROLEUM AND PETROLEUM PRODUCTS, AND CHEMICALS AND CHEMICAL PRODUCTS ROSE BY 20.2% AND 12.6% RESPECTIVELY IN 2Q 2008 OVER 1Q 2008. AFTER ADJUSTING FOR PRICE CHANGES, SALES REMAINED AT SIMILAR LEVELS AS 1Q 2008.

CONVERSELY, DOMESTIC GENERAL WHOLESALE TRADE FELL BY 15.2%. IT WAS FOLLOWED BY DOMESTIC SALES OF FOOD, BEVERAGES AND TOBACCO, SHIP CHANDLERS AND BUNKERING, AND

HOUSEHOLD EQUIPMENT AND FURNITURE WHICH CONTRACTED BY 4.1% TO 6.9% OVER 1Q 2008.

ON A YEAR-ON-YEAR BASIS, THE WHOLESALE SECTORS RECORDED MIXED PERFORMANCE IN DOMESTIC SALES IN 2008 OVER 2Q 2007.

THE DOMESTIC SALES OF PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, AND CHEMICALS AND CHEMICAL PRODUCTS ROSE BY 17.8% TO 54.7% IN 2Q 2008. SALES OF TIMBER, PAINTS AND CONSTRUCTION MATERIALS ROSE BY 8.7% OVER 2Q 2007.

CONVERSELY, DOMESTIC GENERAL WHOLESALE TRADE FELL BY 24.6%. WHOLESALE TRADE OF

FOOD, BEVERAGES AND TOBACCO, HOUSEHOLD EQUIPMENT AND FURNITURE, AND TRANSPORT EQUIPMENT FELL BY 7.7% TO 9.3%. DOMESTIC SALES OF ELECTRONIC COMPONENTS DECLINED BY 4.3% IN 2Q 2008 WHILE TELECOMMUNICATIONS AND COMPUTERS REMAINED STABLE.

FOREIGN WHOLESALE TRADE INDEX

FOREIGN WHOLESALE TRADE SALES ROSE BY 11.8% IN 2Q 2008 OVER 1Q 2008. EXCLUDING PETROLEUM, SALES ROSE BY 4.7%.

AFTER SEASONAL ADJUSTMENT, FOREIGN SALES ROSE BY 6.7% OVER 1Q 2008. EXCLUDING PETROLEUM, SALES ROSE SLIGHTLY BY 1.0%.

ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE SALES ROSE BY 28.4% OVER 1Q 2008.

EXCLUDING PETROLEUM, SALES ROSE BY 15.3%. AFTER REMOVING PRICE EFFECT, OVERSEAS SALES ROSE SLIGHTLY BY 1.1% OVER 2Q 2007.

COMPARED TO 1Q 2008, FOREIGN SALES ROSE IN THE MAJORITY OF WHOLESALE SECTORS IN 2Q 2008.

FOOD, BEVERAGES AND TOBACCO WHOLESALERS REPORTED HIGHER OVERSEAS SALES OF 21.9% IN 2Q 2008 OVER 1Q 2008, THE LARGEST INCREASE AMONG ALL SECTORS. IT WAS FOLLOWED BY PETROLEUM AND PETROLEUM PRODUCTS, AND HOUSEHOLD EQUIPMENT AND FURNITURE WITH INCREASES OF 19.4$ AND 16.1% RESPECTIVELY. FOREIGN SALES OF SHIP CHANDLERS AND BUNKERING ROSE BY 8.1% IN 2Q 2008 OVER 1Q 2008.TIMBER, PAINTS AND CONSTRUCTION MATERIALS, CHEMICALS AND CHEMICAL PRODUCTS, AND INDSUTRIAL AND CONSTRUCTION MACHINERY ALSO ROSE BY BETWEEN 5.8% TO 7.2%.

AFTER ADJUSTING FOR PRICE INCREASES, THE SALES VOLUME OF PETROLEUM AND PETROLEUM PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS, SHIP CHANDLERS AND BUNKERING CONTRACTED COMPARED TO 1Q 2008.

CONVERSELY, FOREIGN SALES OF TELECOMMUNICATIONS AND COMPUTERS, AND GENERAL WHOLESALE TRADE FELL IN 2Q 2008 OVER 1Q 2008. SALES OF ELECTRONIC COMPONENTS

REMAINED STABLE AS COMPARED TO 1Q 2008.

COMPARED TO A YEAR AGO, MOST WHOLESALE SECTORS REPORTED DOUBLE-DIGIT GROWTHS IN FOREIGN SALES IN 2Q 2008.

WHOLESALING OF FOOD, BEVERAGES AND TOBACCO CONTINUED TO RECORD HIGHER GROWTH RATES IN FOREIGN SALES, WITH HIGHER TURNOVER OF 94.8% IN 2Q 2008 OVER A YEAR AGO. AFTER ADJUSTING FOR PRICES, SALES VOLUME ROSE BY 77.3% OVER A YEAR AGO.

WITH HIGHER FUEL PRICES. WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING REPORTED HIGHER FOREIGN SALES OF 43.7% AND 38.1% RESPECTIVELY OVER A YEAR AGO. AFTER REMOVING PRICE EFFECT, THE SALES VOLUME OF

PETROLEUM AND PETROLEUM PRODUCTS FELL BY 10.7% WHILE SALES VOLUME OF SHIP CHANDLERS AND BUNKERING DECLINED BY 13.6.

GENERAL WHOLESALE TRADE, CHEMICALS AND CHEMICAL PRODUCTS, TRANSPORT EQUIPMENT, AND

HOUSEHOLD EQUIPMENT AND FURNITURE, AND INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO REGISTERED STRONG SALES GROWTH OF BETWEEN 5.8% TO 24.7%.

CONVERSELY, FOREIGN SALES OF ELECTRONIC COMPONENTS, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, AND TELECOMMUNICATIONS AND COMPUTERS FELL BY 4.9% TO 8.6%

IN 2Q 2008 COMPARED TO 2Q 2007.

NEWS

RETAIL SPENDING DOWN FOR THIRD STRAIGHT MONTH

RETAIL SPENDING FELL FOR THE THIRD STRAIGHT MONTH IN AUGUST AS DEMAND FOR CARS AND RECREATIONAL GOODS DROPPED AMID THE COUNTRY’S FIRST RECESSION SINCE 2002.

WHILE SPENDING ROSE 4.2% FROM AUGUST LAST YEAR, IT WAS 5.8% FROM JULY THIS YEAR, ACCORDING TO THE RETAIL SALES INDEX RELEASED BY THE DEPARTMENT OF STATISTICS (DOS) YESTERDAY.

TOTAL RETAIL SALES IN AUGUST WERE ESTIMATED AT S$2.71 BILLION, DOWN FROM S$2.88 BILLION IN JULY.

THE SLOWDOWN IN SPENDING MEANT PEOPLE SPLASHED OUT LESS ON CARS, FURNITURE AND HOUSEHOLD EQUIPMENT, PETROL, APPAREL, FOOTWEAR AND RECREATIONAL GOODS.

SALES FELL ACROSS THE BOARD FROM THEIR JULY TAKINGS, WITH DECLINES RANGING FROM 3.6% TO 20.4%.

BUT THERE WAS A DOUBLE-DIGIT RISE IN SALES OF BIG-TICKET LUXURY ITEMS.

TELECOMMUNICATIONS APPARATUS AND COMPUTER RETAILERS ENJOYED SALES GROWTH OF 19.5%, WHILE THE WATCH AND JEWELLERY SECTOR’S RECEIPTS ROSE BY 13.6% IN JULY.

A RECENT STRAITS TIMES SURVEY OF 62 TENANTS IN SIX ORCHARD ROAD MALLS FOUND RETAIL REVENUES HAVE FALLEN BY AS MUCH AS 30.0% IN THE PAST THREE WEEKS, COINCIDING WITH THE BANK FAILURES, STOCK MARKET ROUTS AND GROWING FEARS OVER THE GLOBAL FINANICAL TURMOIL.

SEVERAL STORES HAVE ALSO LAUNCHED MID-SEASON SALES, AN EXERCISE UNUSUALLY UNDERTAKEN ONLY IN PARTICULARY SLOW PERIODS.

THE AUGUST FIGURES WERE MORE ENCOURAGING, HOWEVER, WHEN COMPARED WITH THE SAME PERIOD LAST YEAR. VIRTUALLY ALL SEGMENTS, FROM DEPARTMENT STORES TO SUPERMARKETS, REPORTED DOUBLE-DIGIT GROWTHS OF 11.2 TO 29.6%. HOWEVER, MOTOR VEHICLE SALES FELL 12.9% AND RECREATIONAL GOODS SALES CONTRACTED BY 6.8%.

INFLATION MAY HAVE PUSHED SALES FIGURES UP. AFTER REMOVING THE EFFECT OF HIGHER PRICES, WHICH WOULD GIVE A HIGHER OVERALL SALES VALUE, RETAIL SALES ACTUALLY REMAINED UNCHANGED FROM A YEAR AGO.

VALUE OF PETROL SALES IN MARCH SOARED 39%, AS A RESULT OF RISING CRUDE OIL PRICES, EVEN THOUGH THE ACTUAL VOLUME WAS ONLY MARGINALLY HIGHER.

PETROL STATION SALES POSTED THE FASTEST GROWTH OF ALL RETAIL SEGMENTS IN MARCH, ACCORDING TO FIGURES THE DEPARTMENT OF STATISTICS RELEASED YESTERDAY.

PETROL SALES ROSE 28.2% IN FEBRUARY.

MOST RETAIL SEGMENTS POSTED HIGHER GROWTH MARCH AFTER A WEAKER SHOWING IN FEBRUARY FOR THE COMPUTERS, FURNITURE, OPTICAL GOODS AND BOOKS SEGMENTS. BUT MOTOR VEHICLES FELL 8.1% FROM MARCH 2007 AS A RESULT OF THE ESCALATING PETROL PRICES. CRUDE OIL HIT ALMOST US$127 A BARREL RECENTLY.

THE SUPERMARKET AND FOOD AND BEVERAGE SEGMENTS ALSO REPORTED LOWER SALES ACTIVITY THAN IN FEBRUARY, WITH FALLS OF 4.7% AND 11.9%, RESPECTIVELY.

OVERALL RETAIL SALES ROSE BY 5.6% COMPARED TO MARCH 2007. EXCLUDING MOTOR VEHICLES, SALES VOLUME ROSE BY 12.5%.

OCBC ECONOMIST SELENA LING NOTED THE RETAIL NUMBERS INDICATED RELATIVELY HEALTHY CONSUMER SPENDING. “THIS IS A TESTIMONY TO THE FACT THAT THE SINGAPOREAN ECONOMY IS STILL ENJOYING BROAD-BASED GROWTH DESPITE THE GLOBAL SLOWDOWN,” SHE SAID.

THE TOTAL VALUE OF RETAIL SALES IN MARCH WAS ESTIMATED AT S$2.89 BILLION, COMPARED WITH S$2.59 BILLION IN FEBRUARY.

OUTLOOK

GENERALLY, THE MAJORITY OF WHOLESALERS, WITH A NET WEIGHTED BALANCE OF 55% OF FIRMS, FORECASTS BUSINESS ACTIVITIES IN THE COMING MONTHS, TO REMAIN AT SIMILAR LEVELS. FOR THE REMAINING WHOLESALE FIRMS, A WEIGHTED 22% OF THEM EXPECTS BETTER BUSINESS CONDITIONS TO IMPROVE. THESE FIRMS ARE MAINLY IN THE BUSINESS OF WHOLESALE TRADE OF INDUSTRIAL MACHINERY AND EQUIPMENT, ELECTRONIC COMPONENTS, AND COMPUTER AND ACCESSORIES. ON THE OTHER HAND, A WEIGHTED 23% OF WHOLESALERS, MAINLY FROM FOOD AND BEVERAGES, AND PETROLEUM AND PETROLEUM PRODUCTS, FORECAST BUSINESS CONDITIONS TO DETERIORATE IN THE COMING MONTHS. ON THE WHOLE, A NET WEIGHTED BALANCE OF 1% OF FIRMS EXPECTS GENERAL BUSINESS OUTLOOK TO REMAIN LESS FAVOURABLE.

A NET WEIGHTED BALANCE OF 20% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING DECEMBER 2008. MOTOR VEHICLES RETAILERS, AND JEWWELLERY AND WATCHES CONTINUE TO PREDICT SLOWER SALES IN THE MONTHS AHEAD.

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.49.84
UK Pound	1	Rs.76.81
Euro	1	Rs.64.38

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