MIRA INFORM REPORT

Report Date :

14.10.2008

IDENTIFICATION DETAILS

Name :	TROPICAL GRAINS & FEEDS INDUSTRIES PTE LTD
Registered Office :	^16 Raffles Quay ^#39-03 ^Hong Leong Building ^048581
Country :	Singapore
Financials (as on) :	31.03.2008
Date of Incorporation :	^21.03.1996
Com. Reg. No.:	^199601945W
Legal Form :	^Pte Ltd
Line of Business :	^General Wholesale Trade (including General Importers and ^Exporters) ^Wholesale on a Fee or Contract Basis (eg Commission Agencies)

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

TROPICAL GRAINS & FEEDS INDUSTRIES PTE LTD

Line Of Business 

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

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

Parent Company

^{FINGLETON INVESTMENTS LIMITED}

(PERCENTAGE OF SHAREHOLDING: 99%)

Financial Elements

FY 2008

COMPANY

Sales : USD 258,487,215

Networth : USD 1,486,583

Paid-Up Capital : USD 588,235

Net result : USD 168,445

Net Margin(%) : 0.07

Return on Equity(%) : 11.33

Leverage Ratio : 59.45

COMPANY IDENTIFICATION

^{Subject Company : TROPICAL GRAINS & FEEDS INDUSTRIES PTE LTD}

^{Former Name : -}

^{Business Address : 16 RAFFLES QUAY #39-03 HONG LEONG BUILDING}

^{Town : SINGAPORE}

^{Postcode : 048581}

^{County : -}

^{Country : Singapore}

^{Telephone : 6438 6820}

^{Fax : Not Listed}

^{ROC Number : 199601945W}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 21/03/1996}

^{Previous Legal Form : -}

^{Summary year : 31/03/2008}

^{Sales : 258,487,215}

^{Networth : 1,486,583}

^{Capital : 1,000,000}

^{Paid-Up Capital : 588,235}

^{Employees : -}

^{Net result : 168,445}

^{Share value : 1}

^{Auditor : LEONG KIN WENG & CO}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 21/03/1996}

PRINCIPAL(S)

^{LIM BOON HOCK S1625414B Director}

FORMER PRINCIPALS(S)

^{NG GUAN KEAT Former}

DIRECTOR(S)

^{CHEO MENG CHOO S0238160E Company Secretary}

^{Appointed on : 21/03/1996}

^{Street : 36 TAMAN SELAMAT}

^{KIMNAN PARK}

^{Town : SINGAPORE}

^{Postcode : 416432}

^{Country : Singapore}

^{LIM BOON HOCK S1625414B Director}

^{Appointed on : 20/04/1998}

^{Street : 973 HOUGANG STREET 91}

^#05-218

^{Town : SINGAPORE}

^{Postcode : 530973}

^{Country : Singapore}

^{SUNIL KHANDELWAL S6983238E Director}

^{Appointed on : 21/03/1996}

^{Street : 30 TANAH MERAH KECHIL ROAD}

^#10-04

^{EAST MEADOWS}

^{Town : SINGAPORE}

^{Postcode : 465558}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{NG GUAN KEAT S0068744H}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code: 11760}

^{OILS - ANIMAL Code: 15425}

^{OILS - COOKING Code: 15430}

^{OILS - ESSENTIAL Code: 15450}

^{BASED ON ACRA'S RECORD}

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

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

CHARGES

^{Date: 25/07/2006}

^{Comments : CHARGE NO: C200604843}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): ABN AMRO BANK N.V.}

^{Date: 18/10/2005}

^{Comments : CHARGE NO: C200506472}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): KBC BANK N.V.}

^{Date: 06/03/2003}

^{Comments : CHARGE NO: C200301011}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): SOCIETE GENERALE}

^{Date: 29/01/2003}

^{Comments : CHARGE NO: C200300329}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): ABN AMRO BANK N.V.}

^{Date: 24/12/2002}

^{Comments : CHARGE NO: 200205651}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): SOCIETE GENERALE}

^{Date: 03/10/2001}

^{Comments : CHARGE NO: 200104800}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): SOCIETE GENERALE}

^{Date: 31/08/2001}

^{Comments : CHARGE NO: 200104224}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): THE DEVELOPMENT BANK OF SINGAPORE LTD}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{ABN AMRO BANK N.V.}

^{DBS PTE. LTD.}

^{KBC BANK N.V.}

SHAREHOLDERS(S)

^{FINGLETON INVESTMENTS LIMITED 999,998 Company}

^{Street : OFFSHORE INCORPORATION CENTRE}

^{ROAD TOWN TORTOLA P O BOX 957}

^{Town : TORTOLA}

^{Postcode :}

^{Country : Virgin Islands (British)}

^{LIM BOON HOCK 1 Private Person}

^{Street : 973 HOUGANG STREET 91}

^#05-218

^{Town : SINGAPORE}

^{Postcode : 530973}

^{Country : Singapore}

^{SUNIL KHANDELWAL 1 Private Person}

^{Street : 30 TANAH MERAH KECHIL ROAD}

^#10-04

^{EAST MEADOWS}

^{Town : SINGAPORE}

^{Postcode : 465558}

^{Country : Singapore}

FORMER SHAREHOLDER(S)

^{NG GUAN KEAT 1}

HOLDING COMPANY

^{FINGLETON INVESTMENTS LIMITED UF19986D %: 99.00}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIANT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 20/08/2008}

^{Balance Sheet Date: 31/03/2008 31/03/2007}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Total Fixed Assets: - -}

^{Receivables: 88,727,743 51,734,031}

^{Cash,Banks, Securitis: 1,095,680 4,108,733}

^{Other current assets: 41,088 27,348}

^{Total Current Assets: 89,864,511 55,870,112}

^{TOTAL ASSETS: 89,864,511 55,870,112}

^{--- LIABILITIES}

^{Equity capital: 588,235 588,235}

^{Profit & lost Account: 898,348 729,903}

^{Total Equity: 1,486,583 1,318,138}

^{Trade Creditors: 86,708,935 53,287,095}

^{Prepay. & Def. charges: 11,294 9,740}

^{Short term liabilities:}

^{Due to Bank: 1,637,703 1,239,554}

^{Provisions: 19,996 15,585}

^{Other Short term Liab.:}

^{Total short term Liab.: 88,377,928 54,551,974}

^{TOTAL LIABILITIES: 88,377,928 54,551,974}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 258,487,215 256,848,942}

^{Purchases,Sces & Other Goods: 257,975,596 256,353,331}

^{Gross Profit: 511,619 495,611}

^{Result of ordinary operations 292,442 298,907}

^{NET RESULT BEFORE TAX: 185,846 165,940}

^{Tax : 17,401 15,585}

^{Net income/loss year: 168,445 150,355}

^{Interest Paid: 93,580 125,336}

^{Depreciation: - -}

^{Wages and Salaries: - -}

^{Financial Income: 42,649 39,038}

RATIOS

^{31/03/2008 31/03/2007}

^{Net Margin(%): 0.07 0.06}

^{Return on Equity(%): 11.33 11.41}

^{Return on Assets(%): 0.19 0.27}

^{Net Working capital: 1,486,583.00 1,318,138.00}

^{Cash Ratio: 0.01 0.08}

^{Quick Ratio: 1.02 1.02}

^{Current ratio: 1.02 1.02}

^{Receivables Turnover: 123.57 72.51}

^{Leverage Ratio: 59.45 41.39}

^{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}

^{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 SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 12.78% FROM US$1,318,138 IN FY 2007 TO US$1,486,583 IN FY 2008. THIS WAS DUE TO HIGHER RETAINED PROFIT OF US$898,348 (2007: US$729,903); A RISE OF 23.08% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 98.11% (2007: 97.68%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$86,708,935 (2007: US$53,287,095).}

^{IN ALL, LEVERAGE RATIO ROSE FROM 41.39 TIMES TO 59.45 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES TO TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO REMAINED UNCHANGED AT 1.02 TIMES AND QUICK RATIO REMAINED UNCHANGED AT 1.02 TIMES IN FY 2008.}

^{NET WORKING CAPITAL IMPROVED BY 12.78% FROM US$1,318,138 IN FY 2007 TO US$1,486,583.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 0.64% FROM US$256,848,942 IN FY 2007 TO US$258,487,215 AND NET PROFIT ROSE BY 12.03% TO US$168,445 (2007: US $150,355). HENCE, NET MARGIN ROSE TO 0.07% (2007: 0.06%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.}

^{AVERAGE COLLECTION PERIOD HAS INCREASED FROM 72.51 DAYS TO 123.57 DAYS. A HIGHER AVERAGE COLLECTION PERIOD POSES GREATER RISK OF TURNING INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT SERVICING ABILITY MAY NOT BE AFFECTED IF TRADE RECEIVABLES ARE FORTHCOMING.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 21/03/1996 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "TROPICAL GRAINS & FEEDS INDUSTRIES PTE LTD".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 1,000,000 SHARES, OF A VALUE OF S$1,000,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

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

^EXPORTERS)

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

^{COMMISSION AGENCIES}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL}

^{ACTIVITIES CONSIST OF THE OFFSHORE TRADE IN EDIBLE AND NON-EDIBLE OILS}

^{AND AGRO PRODUCTS.}

^{NO INFORMATION WAS GATHERED FROM THE RESEARCH DONE.}

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

^{REGISTERED AND BUSINESS ADDRESS:}

^{16 RAFFLES QUAY}

^{#39-03 HONG LEONG BUILDING}

^{SINGAPORE 048581}

^{DATE OF CHANGE OF ADDRESS: 03/05/2005}

^{WEBSITE: -}

^{EMAIL: -}

MANAGEMENT

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

^{1) LIM BOON HOCK, A SINGAPOREAN}

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

^{2) SUNIL KHANDELWAL, A SINGAPORE PERMANENT RESIDENT}

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

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

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

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

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

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

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

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

ASSETS

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

WEAKNESSES

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

^{WHOLESALE AND RETAIL TRADE SECTOR}

^{PAST PERFORMANCE}

^{THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 5.2% IN 1Q 2008, SLOWER THAN THE}

^{6.0% GROWTH IN 4Q 2007. NON-OIL RE-EXPORTS GREW BY 2.0% IN 1Q 2008, IN CONTRAST}

^{TO THE 1.2% DECLINE IN 4Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY A}

^{MODERATE 1.4% IN 1Q 2008, FOLLOWING A HIGHER 9.9% GROWTH IN 4Q 2007.}

^{DOMESTIC WHOLESALE TRADE INDEX}

^{THE OVERALL DOMESTIC WHOLESALE TRADE FELL BY 7.1% IN 1Q 2008 OVER 4Q 2007.}

^{EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 6.5%.}

^{AFTER SEASONAL ADJUSTMENT, DOMESTIC SALES ROSE BY 4.4% IN 1Q 2008 OVER 4Q 2007.}

^{EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 2.7%.}

^{ON A YEAR-ON-YEAR BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 26.5% OVER}

^{THE PREVIOUS YEAR. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 12.2%. AFTER}

^{REMOVING PRICE EFFECT, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 2.8% IN 1Q}

^{2008 OVER 1Q 2007.}

^{ON A QUARTER-OVER-QUARTER BASIS, MOST WHOLESALE SECTORS REPORTED LOWER DOMESTIC}

^{SALES AFTER RECORDING BRISK BUSINESS IN THE PREVIOUS QUARTER.}

^{GENERAL WHOLESALE TRADE FELL BY 24.6% IN 1Q 2008, AFTER RECORDING HIGHER SALES}

^{OF 26.8% IN 4Q 2007. THE SALES OF TELECOMMUNICATIONS AND COMPUTERS, INDUSTRIAL}

^{AND CONSTRUCTION MACHINERY, AND HOUSEHOLD EQUIPMENT AND FURNITURE REPORTED LOWER}

^{SALES BY 13.3% 15.3% IN 1Q 2008.}

^{DOMESTIC SALES OF PETROLEUM AND PETROLEUM PRODUCTS FELL BY 7.7% IN 1Q 2008 OVER}

^{4Q 2007. AFTER ADJUSTING FOR PRICE CHANGES, SALES DECLINED BY 12.4%.}

^{ON THE OTHER HAND, SHIP CHANDLERS AND BUNKERING, FOOD, BEVERAGES AND TOBACCO}

^{RECORDED HIGHER TURNOVER OF 8.8% AND 0.8% OVER THE PREVIOUS QUARTER}

^{RESPECTIVELY.}

^{MAJORITY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 1Q 2008 OVER}

^{1Q 2007.}

^{THE GROWTH IN THE OVERALL DOMESTIC SALES WAS MAINLY CONTRIBUTED BY PETROLEUM AND}

^{PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING, AND GENERAL WHOLESALE TRADE,}

^{WHICH REPORTED HIGHER SALES OF 42.9% TO 47.4%. AFTER ADJUSTING FOR PRICE}

^{CHANGES, THE TRADING VOLUME CHANGED MARGINALLY FOR PETROLEUM AND PETROLEUM}

^{PRODUCTS, SHIP CHANDLERS AND BUNKERING WHILE THE SALE VOLUME ROSE BY 27.8% FOR}

^{GENERAL WHOLESALERS.}

^{OTHER SECTORS THAT RECORDED BETTER SALES INCLUDE TIMBER, PAINTS AND CONSTRUCTION}

^{MATERIALS (20.3%) CHEMICALS AND CHEMICAL PRODUCTS (8.7%) INDUSTRIAL AND}

^{CONSTRUCTION MACHINERY (7.6%) TRANSPORT EQUIPMENT (7.2%) AND FOOD, BEVERAGES AND}

^{TOBACCO (0.7%).}

^{CONVERSELY, DOMESTIC SALES OF ELECTRONIC COMPONENTS FELL BY 10.9%, THE FIFTH}

^{CONSECUTIVE QUARTER OF DECLINE SINCE 1Q 2007. AFTER REMOVING PRICE CHANGES,}

^{SALES OF ELECTRONIC COMPONENTS FELL BY 3.6%. WHOLESALE VALUES OF}

^{TELECOMMUNICATIONS AND COMPUTERS, AND HOUSEHOLD EQUIPMENT AND FURNITURE ALSO}

^{DECLINED MARGINALLY IN 1Q 2008. AFTER REMOVING PRICE CHANGES, SALES OF THE TWO}

^{SECTORS ROSE COMPARED TO A YEAR AGO.}

^{FOREIGN WHOLESALE TRADE INDEX}

^{FOREIGN WHOLESALE TRADE SALES FELL MARGINALLY BY 0.6% IN 1Q 2008 OVER 4Q 2007.}

^{EXCLUDING PETROLEUM, SALES FELL BY 2.4%.}

^{AFTER SEASONAL ADJUSTMENT, FOREIGN SALES ROSE BY 5.6% OVER 4Q 2007. EXCLUDING}

^{PETROLEUM, SALES ROSE BY 5.2%.}

^{ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE SALES ROSE BY 31.4% OVER 1Q 2007.}

^{EXCLUDING PETROLEUM, SALES ROSE BY 18.3%. AFTER REMOVING PRICE EFFECT, OVERSEAS}

^{SALES ROSE BY 6.7% OVER 1Q 2007.}

^{COMPARED TO 4Q 2007, THERE WAS MIXED PERFORMANCE IN FOREIGN SALES AMONG THE}

^{WHOLESALE SECTORS IN 1Q 2008.}

^{FOOD, BEVERAGES AND TOBACCO WHOLESALERS REPORTED HIGHER OVERSEAS SALES OF 16.0%}

^{IN 1Q 2008 OVER 4Q 2007, THE LARGEST INCREASE AMONG ALL SECTORS. IT WAS FOLLOWED}

^{BY GENERAL WHOLESALE TRADE (9.4%) SHIP CHANDLERS AND BUNKERING (4.7%) AND}

^{WHOLESALING OF CHEMICALS AND CHEMICAL PRODUCTS (2.2%).}

^{SALES OF PETROLEUM AND PETROLEUM PRODUCTS ROSE SLIGHTLY BY 1.3% IN 1Q 2008 OVER}

^{4Q 2007. HOWEVER, AFTER ADJUSTING FOR PRICE CHANGES, THE SALES VOLUME FELL BY}

^3.8%.

^{CONVERSELY, FOREIGN SALES OF HOUSEHOLD EQUIPMENT AND FURNITURE,}

^{TELECOMMUNICATIONS AND COMPUTERS, TIMBER, PAINTS AND CONSTRUCTION MATERIALS,}

^{TRANSPORT EQUIPMENT, INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC}

^{COMPONENTS FELL IN 1Q 2008 OVER 4Q 2007.}

^{COMPARED TO A YEAR AGO, SOME WHOLESALE SECTORS REPORTED DOUBLE-DIGIT GROWTHS IN}

^{FOREIGN SALES IN 1Q 2008 WHILE OTHERS FELL.}

^{WHOLESALING OF FOOD, BEVERAGES AND TOBACCO CONTINUED TO RECORD HIGH GROWTH RATES}

^{IN FOREIGN SALES, WITH HIGHER TURNOVER OF 89.0% IN 1Q 2008 OVER A YEAR AGO.}

^{AFTER ADJUSTING FOR PRICES, SALES VOLUME ROSE BY 72.9% OVER A YEAR AGO.}

^{WITH HIGHER FUEL PRICES. WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS,}

^{SHIP CHANDLERS AND BUNKERINH REPORTED HIGHER FOREIGN SALES OF 49.2% AND 46.3%}

^{RESPECTIVELY OVER A YEAR AGO. AFTER REMOVING PRICE EFFECT, THE SALES VOLUME OF}

^{PETROLEUM AND PETROLEUM PRODUCTS FELL BY 3.1% WHILE SALES VOLUME OF SHIP}

^{CHANDLERS AND BUNKERING HELD ITS LEVEL.}

^{GENERAL WHOLESALE TRADE, CHEMICALS AND CHEMICAL PRODUCTS, TRANSPORT EQUIPMENT,}

^{AND INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO REGISTERED STRONG SALES GROWTHS}

^{BETWEEN 10.5% TO 47.4%.}

^{CONVERSELY, FOREIGN SALES DECLINED IN 1Q 2008 FOR HOUSEHOLD EQUIPMENT AND}

^{FURNITURE, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, ELECTRONIC COMPONENTS, AND}

^{TELECOMMUNICATIONS AND COMPUTERS. THE SALES FELL BY 4.3% TO 8.7% FOR THESE}

^{SECTORS COMPARED TO 1Q 2007.}

^NEWS

^{MARCH RETAIL GROWTH FUELLED BY PETROL PRICES}

^{THE 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, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING}

^{MONTHS, WITH A NET WEIGHTED BALANCE OF 9% OF FIRMS EXPRESSING POSITIVE BUSINESS}

^{SENTIMENTS. THOSE DEALING IN TROPICAL PRODUCE, WEARING APPAREL AND FOOTWEAR, AND}

^{INDUSTRIAL MACHINERY AND EQUIPMENT ARE THE ONES EXPRESSING OPTIMISM.}

^{A NET WEIGHTED BALANCE OF 29% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS}

^{CONDITIONS FOR THE PERIOD ENDING SEPTEMBER 2008. SUPERMARKETS AND RETAILERS OF}

^{JEWWELLERY AND WATCHES EXPECT SLOWER BUSINESS AFTER THE FESTIVE PERIOD. AS A}

^{RESULT OF THE REDUCED CERTIFICATE OF ENTITLEMENT (COE) QUOTA, MOTOR VEHICLES}

^{RETAILERS ARE ESPECIALLY CONCERNED WITH THE SALES.}

^{EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE}

^{SINGAPORE DEPARTMENT OF STATISTICS}

^{THE STRAITS TIMES}

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.43
UK Pound	1	Rs.84.54
Euro	1	Rs.65.91

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