MIRA INFORM REPORT

Report Date :

28.08.2008

IDENTIFICATION DETAILS

Name :	R1 INTERNATIONAL PTE LTD
Registered Office :	8 Robinson Road, #05-00, Cosco Building, Singapore - 048544
Country :	Singapore
Financials (as on) :	30.09.2007
Date of Incorporation :	^20.07.2001
Com. Reg. No.:	^200104842R
Legal Form :	^Pte Ltd
Line of Business :	^Trading of Natural Rubber and Latex.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

R1 INTERNATIONAL PTE LTD

Line Of Business 

^{TRADING OF NATURAL RUBBER AND LATEX.}

Parent Company

N/A

Financial Elements

FY 2007

CONSOLIDATED

Sales : US$793,950,708

Networth : US$ 15,254,369

Paid-Up Capital : US$ 7,000,000

Net result : S$ 1,994,073

Net Margin(%) : 0.25

Return on Equity(%) : 13.07

Leverage Ratio : 4.72

COMPANY IDENTIFICATION

^{Subject Company : R1 INTERNATIONAL PTE LTD}

^{Former Name :}

^{Business Address : 8 ROBINSON ROAD}

^#05-00

^{COSCO BUILDING}

^{Town : SINGAPORE}

^{Postcode : 048544}

^{County :}

^{Country : Singapore}

^{Telephone : 6557 4399}

^{Fax : 6536 0828/65383393}

^{ROC Number : 200104842R}

^{Reg. Town:}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 20/07/2001}

^{Previous Legal Form : -}

^{Summary year : 30/09/2007}

^{Sales : 793,950,708}

^{Networth : 15,254,369}

^{Capital : -}

^{Paid-Up Capital : 7,000,000}

^{Employees : 15}

^{Net result : 1,994,073}

^{Share value : -}

^{Auditor : ERNST & YOUNG}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 7,000,000 USD 7,000,000.00}

^{PAID-UP ORDINARY - USD 7,000,000.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 20/07/2001}

PRINCIPAL(S)

^{SANDANA DASS S2712656A Managing Director}

DIRECTOR(S)

^{DATO' WIRA SYED ABDUL JABBAR BIN 391208-02- Director}

^{Appointed on : 15/01/2004}

^{Street : 23 JALAN 7 KENNENSAH HEIGHTS}

^{ULU KELANG, AMPANG}

^{Town: SELANGOR}

^{Postcode: 68000}

^{Country: Malaysia}

^{DATUK DR MAHMOOD ABD KADIR 480330-01- Director}

^{Appointed on : 15/01/2004}

^{Street : 1 JLANA 12/2}

^{TAMAN TUN ABDUL RAZAK}

^AMPANG

^{Town: SELANGOR}

^{Postcode: 68000}

^{Country: Malaysia}

^{DR PONGSAK KERDV ONGBUNDIT L683164 Director}

^{Appointed on : 23/07/2001}

^{Street : VON BUNDIT CO 20/5 GOMARAPAT}

^ROAD

^{Town: PHUKET}

^{Postcode: 83000}

^{Country: Thailand}

^{PAYUNGSAK KERDVONBUNDIT K334595 Alternate Director}

^{Appointed on : 17/12/2001}

^{Street : 20/5 GOMARAPAT ROAD}

^{Town: PHUKET}

^{Postcode: 83000}

^{Country: Thailand}

^{SYED MUNIRUL HASAN S2715581B Director}

^{Appointed on : 10/05/2008}

^{Street : 14 LEONIE HILL ROAD}

^#10-16

^FUTURA

^{Town: SINGAPORE}

^{Postcode: 239193}

^{Country: Singapore}

^{CHAN YOKE HENG IRENE S1459389F Company Secretary}

^{Appointed on : 24/07/2001}

^{Street : 997 BUKIT TIMAH ROAD}

^#08-04

^{CASA ESPERANZA}

^{Town: SINGAPORE}

^{Postcode: 589633}

^{Country: Singapore}

^{NG SWAN CHU @ LINDA SOEWARNI S2165246F Director}

^{Appointed on : 11/02/2004}

^{Street : 18 JALAN TANAH PUTEH}

^{Town: SINGAPORE}

^{Postcode: 457341}

^{Country: Singapore}

^{WILSON HASAN WIDJAJA 055698663 Alternate Director}

^{Appointed on : 14/05/2008}

^{Street : 33 WATTEN DRIVE}

^{WATTEN ESTATE}

^{Town: SINGAPORE}

^{Postcode: 287668}

^{Country: Singapore}

^{SANDANA DASS S2712656A Director}

^{Appointed on : 20/07/2001}

^{Street : 9 BOSCOMBE ROAD}

^{Town: SINGAPORE}

^{Postcode: 439746}

^{Country: Singapore}

^{SANDANA DASS S2712656A Managing Director}

^{Appointed on : 24/07/2001}

^{Street : 9 BOSCOMBE ROAD}

^{Town: SINGAPORE}

^{Postcode: 439746}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{JERAL SYLVESTER D'SOUZA 500024487}

^{AZNI BINTI ARIFFIN 701013-09-}

ACTIVITY(IES)

^{RUBBER - SYNTHETIC Code:18675}

^{LATEX - LIQUID Code:12885}

^{TRADING COMPANIES Code:22190}

^{BASED ON ACRA'S RECORD}

^{1) WHOLESALE OF RUBBER (INCLUDING RUBBER BROKERS)}

CHARGES

^{Date : 13/03/2002}

^{Comments : CHARGE NO: 200201216}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): BUMIPUTRA-C0MMERCE BANK BHD}

^{Date : 12/03/2002}

^{Comments : CHARGE NO: 200201207}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): FORTIS BANK S.A./N.V.}

^{Date : 18/01/2002}

^{Comments : CHARGE NO: 200200300}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): BUMIPUTRA-COMMERCE BANK BHD}

^{Date : 18/12/2001}

^{Comments : CHARGE NO: 200106119}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): FORTIS BANK S.A./N.V.}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{BUMIPUTRA-COMMERCE BANK BHD}

^{FORTIS BANK S.A./N.V.}

SHAREHOLDERS(S)

^{SANDANA DASS 350,000 Private Person}

^{Street : 9 BOSCOMBE ROAD}

^{Town: SINGAPORE}

^{Postcode: 439746}

^{Country: Singapore}

^{MARDEC INTERNATIONAL SDN BHD 3,150,000 Company}

^{Street : BANGUNAN MARDEC}

^{JALAN KERJA AYER LAMA}

^AMPANG

^{Town: SELANGOR}

^{Postcode: 68000}

^{Country: Malaysia}

^{CARGILL ASIA PACIFIC LTD 1,750,000 Company}

^{Street : 5615 MCGINTY ROAD}

^{WEST WAYZATA}

^Town:

^Postcode:

^{Country: United States}

^{KIAN IN LIMITED 1,050,000 Company}

^{Street : 125 MAIN STREET}

^{P.O. BOX 144, ROAD TOWN}

^{Town: TORTOLA}

^Postcode:

^{Country: Virgin Islands (British)}

^{THAVEESAK HOLDING CO. LTD 700,000 Company}

^{Street : 20/05 GOMARAPAT ROAD}

^{Town: PHUKET}

^{Postcode: 83000}

^{Country: Thailand}

FORMER SHAREHOLDER(S)

^{RI HOLDINGS (L) INCORPORATED 7,000,000}

SUBSIDIARY(IES)

^{R1 INTERNATIONAL MALAYSIA SDN BHD}

^{R1 INTERNATIONAL (THAILAND) LTD}

^{R1 INTERNATIONAL JAPAN LIMITED}

^{R1 INTERNATIONAL TRADING (SHANGHAI) CO LIMITED}

^{R1 INTERNATIONAL (INDIA) PTE LTD}

^{R1 DELTA CIS PTE LTD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 14/04/2008}

^{Balance Sheet Date: 30/09/2007 30/09/2006}

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS ---}

^{Preliminary Exp 44,035 62,758}

^{Tangible Fixed Assets: 252,892 91,278}

^{Investments 5,916 1,544,666}

^{Total Fixed Assets: 302,843 1,698,702}

^{Inventories: 5,423,712 1,925,989}

^{Receivables: 66,219,893 50,075,415}

^{Cash,Banks, Securitis: 4,730,652 6,331,100}

^{Other current assets: 10,581,618 8,009,709}

^{Total Current Assets: 86,955,875 66,342,213}

^{TOTAL ASSETS: 87,258,718 68,040,915}

^{--- LIABILITIES ---}

^{Equity capital: 7,000,000 7,000,000}

^{Reserves: 54,211 -16,576}

^{Reeval. Reserves: 473,750}

^{Profit & lost Account: 6,829,764 6,015,926}

^{Other: 1,370,394 388,591}

^{Total Equity: 15,254,369 13,861,691}

^{L/T deffered taxes: 10,490}

^{Other long term Liab.: 49,139}

^{Total L/T Liabilities: 49,139 10,490}

^{Trade Creditors: 35,480,426 32,215,045}

^{Prepay. & Def. charges: 3,459,678 2,436,309}

^{Short term liabilities: 19,021}

^{Due to Bank: 23,597,001 17,461,808}

^{Provisions: 807,942 444,714}

^{Other Short term Liab.: 8,591,142 1,610,858}

^{Total short term Liab.: 71,955,210 54,168,734}

^{TOTAL LIABILITIES: 72,004,349 54,179,224}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 793,950,708 729,060,844}

^{Purchases,Sces & Other Goods: 785,844,278 721,051,152 Gross Profit: 8,106,430 8,009,692 Result of ordinary operations 4,250,198 4,510,681 NET RESULT BEFORE TAX: 2,535,748 2,908,007 Tax : 541,675 542,262 Net income/loss year: 1,994,073 2,365,745 Interest Paid: 2,475,476 1,752,750 Depreciation: 63,700 77,258 Dividends: 868,000 450,000}

^{Directors Emoluments: 439,701 451,087 Wages and Salaries: 1,814,964 2,003,765 Financial Income: 160,813 68,727}

RATIOS

^{30/09/2007 30/09/2006 Turnover per employee: 52930047.20 48604056.27 Net result / Turnover(%): 0.00 0.00 Stock / Turnover(%): 0.01 0.00 Net Margin(%): 0.25 0.32 Return on Equity(%): 13.07 17.07 Return on Assets(%): 2.29 3.48 Dividends Coverage: 2.30 5.26 Net Working capital: 15000665.00 12173479.00 Cash Ratio: 0.07 0.12 Quick Ratio: 0.99 1.04 Current ratio: 1.21 1.22 Receivables Turnover: 30.03 24.73 Leverage Ratio: 4.72 3.91}

^{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)/1000}

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 10.05% FROM USD13,861,691 IN 2006 TO USD15,254,369 IN 2007.}

^{THIS WAS DUE TO HIGHER RESERVES OF USD6,829,764 (2006: USD6,015,926); A RISE OF 13.53% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 49.31% (2006: 59.47%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO USD35,480,426 (2006: USD32,215,045). THE BREAKDOWN IS AS FOLLOWS:}

^{* TRADE CREDITORS - 2007: USD22,709,377 (2006: USD16,825,905)}

^{* RELATED COMPANIES (TRADE) - 2007: USD12,771,049 (2006: USD15,389,140)}

^{AMOUNTS DUE TO BANKS ROSE BY 35.13% AND AMOUNTED TO USD23,597,001}

^{(2006: USD17,461,808). BREAKDOWN WAS AS FOLLOWS:}

^{* TERM LOAN (SECURED) - 2007: USD17,000,000 (2006: USD16,663,838)}

^{* BANK OVERDRAFT - 2007: USD6,597,001 (2006: USD797,970)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 4.72 TIMES IN 2007 AS COMPARED TO 3.91 TIMES IN 2006, AS A RESULT OF A MORE THAN PROPORTIONATE RISE IN TOTAL LIABILITIES AS COMPARED TO THE RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 23.22% TO USD15,000,665 (2006: USD12,173,479).}

^{ON THE OTHER HAND, BOTH THE QUICK AND CURRENT RATIOS POSTED LOWER, WITH THE QUICK RATIO LACKING AT 0.99 TIMES (2006: 1.04 TIMES) AND THE CURRENT RATIO JUST SUFFICIENT AT 1.21 TIMES (2006: 1.22 TIMES).}

^{CASH AND CASH EQUIVALENTS FELL BY 25.28% AND AMOUNTED TO USD4,730,652 (2006: USD6,331,100).}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 8.90% FROM USD729,060,844 IN 2006 TO USD793,950,708 BUT NET PROFIT DROPPED BY 15.71% TO USD1,994,073 (2006: USD2,365,745). HENCE, NET MARGIN FELL TO 0.25% (2006: 0.32%).}

^{DEBT SERVICING:}

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

^{IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 30 DAYS (2006: 25 DAYS).}

^{NON-CURRENT ASSETS:}

^{* DEFERRED TAX ASSET - 2007: USD44,035 (2006: USD62,758) WERE CLASSIFIED UNDER PRELIMINARY.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{* TERM LOAN (SECURED): THE BANK TERM LOAN IS SECURED BY A DEBENTURE OVER FIXED AND FLOATING, PRESENT AND FUTURE ASSETS OF THE COMPANY AND CORPORATE GUARANTEE OF A SUBSIDIARY COMPANY, RI INTERNATIONAL MALAYSIA SDN BHD. INTEREST IS CHARGED AT A RATE OF 6.27% - 6.51% (2006: 5.01% - 6.35%) AND 6.33% (2006: 5.01% - 9.01%) PER ANNUM FOR THE COMPANY AND THE GROUP RESPECTIVELY.}

^{* BANK OVERDRAFT:}

^{THE BANK OVERDRAFT IS SECURED BY A DEBENTURE INCORPORATING A CHARGE OVERALL FIXED AND FLOATING ASSETS, INCLUDING BUT NOT LIMITED TO LOANS, RECIEVABLES, AND MONIES DULY REGISTERED AND CORPORATE GUARANTEES OF THE SUBSIDIARY COMPANIES. INTEREST IS CHARGED AT 6.40% TO 6.43% (2006: 5.60% TO 6.40%) PER ANNUM.}

^{* CONTINGENT LIABILITIES (UNSECURED): DURING THE FINANCIAL YEAR, THE COMPANY AND THE GROUP PROVIDED GUARANTEE FOR BANKING FACILITIES AMOUNTING TO USD54,500,000 (2006: USD47,500,000) BY A CHARGE OVER ALL FIXED AND FLOATING ASSETS, INCLUDING BUT NOT LIMITED TO STOCKS, RECEIVABLE AND MONIES OF THE COMPANY AND SUBSIDIARY COMPANY, AND BY CORPORATE GUARANTEES OF OTHER SUBSIDIARY COMPANIES ON A PARI PAU BASIS. IN ADDITION, THE COMPANY ASSIGNED INSURANCES FOR SHIPMENT OF GOODS AS ADDITIONAL SECURITY FOR BANKING FACILITIES GRANTED.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 20/07/2001 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER THE PRESENT NAMESTYLE OF "R1 INTERNATIONAL PTE LTD".}

^{AS AT 10/06/2008, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 7,000,000 SHARES, OF A VALUE OF USD7,000,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{WHOLESALE OF RUBBER (INCLUDING RUBBER BROKERS)}

^{THE COMPANY WAS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: RUBBER BROKERS & DEALERS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITY OF THE COMPANY IS THE TRADING OF NATURAL RUBBER AND LATEX.}

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

^ACTIVITIES:

^{* TRADING OF NATURAL RUBBER AND LATEX}

^PRODUCTS:

^{WE DEAL IN DIFFERENT GRADES AND TYPES OF RUBBER INCLUDING:}

^{* TECHNICAL SPECIFIED RUBBER}

^{* LATEX}

^{* SMOKED SHEETS}

^{* COMPOUND RUBBER}

^{* SYNTHETIC RUBBER}

^{RUBBER-RELATED PRODUCTS:}

^{* TIRES}

^{* RUBBER WOODS}

^{SERVICES AND SOLUTIONS:}

^{* SUPPLY CHAIN MANAGEMENT BY SECURING NATURAL RUBBER SUPPLY WITH QUALITY GRADE SPECIFICATIONS, BOTH GENERIC AND/OR CUSTOMIZED}

^{* ADJACENCY SERVICES BY MARKETING AND DISTRIBUTION OF RUBBER-RELATED}

^{FINISHED PRODUCTS FOR THE MANUFACTURERS}

^{* CONSULTANCY SERVICES BY ORGANISING EXPERTISE ON PRODUCT TECHNOLOGY, COLLABORATIONS AND DEVELOPMENT IN RUBBER RELATED PRODUCTS}

^{* PRICE RISK MANAGEMENT BY MANAGING THE VOLATILITY OF RUBBER PRICES}

^{* INVENTORY MANAGEMENT BY ENSURING A CONSTANT SUPPLY OF RUBBER, CONSISTENT IN QUALITY}

^{IMPORT COUNTRIES}

^{* THAILAND}

^{* MALAYSIA}

^{* ETC}

^{EXPORT COUNTRIES:}

^{* WORLDWIDE}

^{SUBJECT IS A MEMBER OF FOLLOWING ENTITIES:}

^{* SINGAPORE COMMODITY EXCHANGE LIMITED (SICOM)}

^{* SINGAPORE BUSINESS FEDERATION}

^{* SINGAPORE CHINESE CHAMBER OF COMMERCE & INDUSTRY}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED}

^{NUMBER OF EMPLOYEES}

^{* 15 - AS OF 2006}

^{REGISTERED & BUSINESS ADDRESSES:}

^{8 ROBINSON ROAD}

^{#05-00 CPSCO BUILDING}

^{SINGAPORE 048544}

^{DATE OF CHANGE OF ADDRESS: -}

^{- RENTER PREMISE}

^{- PREMISE OWNED BY: PENFIELD COMPANY LIMITED}

^{- OFFICE}

^{WEBSITE: http://www.r1international.com}

^{E-MAIL : -}

MANAGEMENT

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

^{1) DATO' WIRA SYED ABDUL JABBAR BIN SYED HASSAN, A MALAYSIAN}

^{- BASED IN MALAYSIA}

^{2) DATUK DR. MAHMOOD ABD. KADIR, A MALAYSIAN}

^{- BASED IN MALAYSIA}

^{3) DR PONGSAK KERDV ONGBUNDIT, A THAI}

^{- BASED IN THAILAND}

^{4) NG SWAN CHU @ LINDA SOEWARNI WIDJAJA, A SINGAPORE PERMANENT}

^RESIDENT

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

^{NEW CONTINENT ENTERPRISES (PRIVATE) LIMITED}

^{5) SANDANA DASS, A SINGAPORE PERMANENT RESIDENT}

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

^{6) SYED MUNIRUL HASAN, A SINGAPORE PERMANENT RESIDENT}

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

^{CARGILL INTERNATIONAL TRADING PTE 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.

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.43.79
UK Pound	1	Rs.80.05
Euro	1	Rs.64.56

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