MIRA INFORM REPORT

Report Date :

17.09.2008

IDENTIFICATION DETAILS

Name :	KAWAMIN PACIFIC PTE LTD
Registered Office :	^43D Beach Road ^#05-00 ^Evershine & Century Complex ^189681
Country :	Singapore
Financials (as on) :	31.03.2007
Date of Incorporation :	^21.12.1993
Com. Reg. No.:	^199308442R
Legal Form :	^Pte Ltd
Line of Business :	^Other Service Activities ^Trading in Raw Material

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 :	Moderate
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

KAWAMIN PACIFIC PTE LTD

Line Of Business 

^{OTHER SERVICE ACTIVITIES}

^{TRADING IN RAW MATERIALS}

Parent Company

^{ASIAMIN INVESTMENTS LIMITED}

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2007

GROUP

Sales : USD 46,904,005

Networth : USD 1,574,068

Paid-Up Capital : USD 1,047,407

Net result : USD -362,477

Net Margin(%) : -0.77

Return on Equity(%) : -23.03

Leverage Ratio : 0.91

COMPANY IDENTIFICATION

^{Subject Company : KAWAMIN PACIFIC PTE LTD}

^{Former Name : -}

^{Business Address : 43D BEACH ROAD}

^#05-00

^{EVERSHINE & CENTURY COMPLEX}

^{Town : SINGAPORE}

^{Postcode : 189681}

^{County : -}

^{Country : Singapore}

^{Telephone : 6226 1525}

^{Fax : 6226 2386}

^{ROC Number : 199308442R}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 21/12/1993}

^{Previous Legal Form : -}

^{Summary year : 31/03/2007}

^{Sales : 46,904,005}

^{Networth : 1,574,068}

^{Capital : -}

^{Paid-Up Capital : 1,047,407}

^{Employees : 8}

^{Net result : -362,477}

^{Share value : -}

^{Auditor : J K MEDORA & CO}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 21/12/1993}

PRINCIPAL(S)

^{HEMANT KUMAR HASMUKHRAI AMIN S6876555B Director}

DIRECTOR(S)

^{RACHNA AMIN S6876556J Director}

^{Appointed on : 31/03/1995}

^{Street : 53 CAIRNHILL ROAD}

^#06-01

^{CAIRNHILL PLAZA}

^{Town : SINGAPORE}

^{Postcode : 229664}

^{Country : Singapore}

^{TAKAFUMI KAWAMURA MN3903877 Director}

^{Appointed on : 01/03/1995}

^{Street : 48-19 3-CHOME}

^{SOSHIGAYA SETAGA}

^{Town : TOKYO}

^{Postcode : -}

^{Country : Japan}

^{SEET BENG CHOO JEANNE S1234059A Company Secretary}

^{Appointed on : 02/08/2003}

^{Street : 22 MALACCA STREET}

^#08-02

^{ROYAL BROTHERS BUILDING}

^{Town : SINGAPORE}

^{Postcode : 048980}

^{Country : Singapore}

^{PEH POH CHIN S6840069D Company Secretary}

^{Appointed on : 02/08/2003}

^{Street : 22 MALACCA STREET}

^#08-02

^{ROYAL BROTHERS BUILDING}

^{Town : SINGAPORE}

^{Postcode : 048980}

^{Country : Singapore}

^{HEMANT KUMAR HASMUKHRAI AMIN S6876555B Director}

^{Appointed on : 21/12/1993}

^{Street : 53 CAIRNHILL ROAD}

^#06-01

^{CAIRNHILL PLAZA}

^{Town : SINGAPORE}

^{Postcode : 229664}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{GUNVANTRAI M SHETH 002501942}

^{WONG LAI LENG S1176982I}

^{SARANGAPANY GUNASEKERAN S1245654I}

^{KOH NGIN JOO JULIE S2586980Z}

^{KAWAMURA ICHIRO 4570067}

^{RAMESH BABULAL BAHETI R087881}

ACTIVITY(IES)

^{TRADING COMPANIES Code: 22190}

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

^{BASED ON ACRA'S RECORD}

^{1) OTHER SERVICE ACTIVITIES; TRADING IN RAW MATERIALS}

CHARGES

^{Date: 29/07/1995}

^{Comments : CHARGE NO : 9504686 (DISCHARGED)}

^{SECURED : 0.0000 ALL MONIES OWING}

^{CHARGEE(S) : STANDARD CHARTERED BANK}

^{Date: 30/08/1994}

^{Comments : CHARGE NO : 9404986 (DISCHARGED)}

^{SECURED : 0.0000 ALL MONIES OWING}

^{CHARGEE(S) : STATE BANK OF INDIA}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{BANGKOK BANK PUBLIC COMPANY LIMITED}

^{OVERSEA-CHINESE BANKING CORPORATION}

^LIMITED

^{RZB AUSTRIA BANK}

SHAREHOLDERS(S)

^{ASIAMIN INVESTMENTS LIMITED 1,850,000 Company}

^{Street : PORTCULLIS TRUSTNET CHAMBERS}

^{P O BOX 3444, ROAD TOWN}

^{Town : TORTOLA}

^{Postcode : -}

^{Country : Virgin Islands (British)}

FORMER SHAREHOLDER(S)

^{DANFIA ENTERPRISE LTD 75,000}

^{EDEN ENTERPRISE LTD 750,000}

^{DORRANCE INTERNATIONAL LTD 149,998}

^{GUNVANTRAI M SHETH 17,500}

^{SARANGAPANY GUNASEKERAN 12,500}

^{HEMANT KUMAR HASMUKHRAI AMIN 1}

^{SHETH DR H 7,500}

^{EMMERLING LTD H K 225,000}

^{NARAYAN MURALI 12,500}

^{DANFIA HOLDINGS LTD 500,000}

^{EMMERLING FAR EAST LIMITED 750,000}

^{ASIAMIN LTD 1,850,000}

HOLDING COMPANY

^{ASIAMIN INVESTMENTS LIMITED UF46065C %: 100}

SUBSIDIARY(IES)

^{KAWAMIN SHIPPING PTE. LTD.}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIANT}

^{Payments : REGULAR}

^{Trend : DOWNWARD}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 17/09/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS}

^{Tangible Fixed Assets: 94,240 12,327}

^{Investments 3,291 1}

^{Total Fixed Assets: 97,531 12,328}

^{Inventories: 739,403 22,500}

^{Receivables: 1,403,350 3,148,934}

^{Cash,Banks, Securitis: 308,069 458,794}

^{Other current assets: 450,585 362,192}

^{Total Current Assets: 2,901,407 3,992,420}

^{TOTAL ASSETS: 2,998,938 4,004,748}

^{--- LIABILITIES}

^{Equity capital: 1,047,407 1,047,407}

^{Profit & lost Account: 526,661 889,138}

^{Total Equity: 1,574,068 1,936,545}

^{L/T deffered taxes: 1,700 1,700}

^{Total L/T Liabilities: 1,700 1,700}

^{Trade Creditors: 422,055 130,517}

^{Prepay. & Def. charges: 11,304 16,052}

^{Advanced payments: - -}

^{Due to Bank: 918,835 1,851,011}

^{Provisions: 9,166 38,055}

^{Other Short term Liab.: 61,810 30,868}

^{Total short term Liab.: 1,423,170 2,066,503}

^{TOTAL LIABILITIES: 1,424,870 2,068,203}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 46,904,005 49,892,409}

^{NET RESULT BEFORE TAX: -363,373 246,841}

^{Tax : -896 38,455}

^{Net income/loss year: -362,477 208,386}

^{Interest Paid: 114,256 96,088}

^{Depreciation: 28,503 6,393}

^{Directors Emoluments: 296,066 190,601}

^{Wages and Salaries: 298,114 247,584}

^{Financial Income: 771}

RATIOS

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

^{Turnover per employee: 5,863,000.62 6,236,551.12}

^{Net result / Turnover(%): -0.01 0.00}

^{Stock / Turnover(%): 0.02 0.00}

^{Net Margin(%): -0.77 0.42}

^{Return on Equity(%): -23.03 10.76}

^{Return on Assets(%): -12.09 5.20}

^{Net Working capital: 1,478,237.00 1,925,917.00}

^{Cash Ratio: 0.22 0.22}

^{Quick Ratio: 1.20 1.75}

^{Current ratio: 2.04 1.93}

^{Receivables Turnover: 10.77 22.72}

^{Leverage Ratio: 0.91 1.07}

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

^{THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE EVEN THOUGH NET WORTH DECREASED BY 18.72% FROM USD1,936,545 IN 2006 TO USD1,574,068 IN 2007. THIS WAS DUE TO LOWER RETAINED EARNINGS OF USD526,661 (2006: USD889,138); A FALL OF 40.77% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY AMOUNTS DUE TO BANKS WHICH MADE UP 64.56% (2006: 89.57%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO USD918,835 (2006: USD1,851,011). TRADE CREDITORS ROSE SHARPLY BY 2.23 TIMES TO USD422,055 (2006: USD130,517). SUBJECT'S LONG TERM LIABILITY, WHICH CONSISTS OF DEFERRED INCOME TAX LIABILITY, REMAINED AT USD1,700 DURING THE FINANCIAL YEAR.}

^{IN ALL, LEVERAGE RATIO FELL FROM 1.07 TIMES TO 0.91 TIMES AS A RESULT OF A MORE THAN PROPORTIONATE FALL IN TOTAL LIABILITIES AS COMPARED TO THE FALL IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE EVEN THOUGH NET WORKING CAPITAL FELL BY 23.25% TO USD1,478,237 (2006: USD1,925,917). CURRENT RATIO ROSE TO 2.04 TIMES, UP FROM 1.93 TIMES BUT QUICK RATIO DECREASED TO 1.20 TIMES FROM 1.75 TIMES IN 2006.}

^{PROFITABILITY:}

^{REVENUE POSTED A DECREASE OF 5.99% FROM USD49,892,409 IN 2006 TO USD46,904,005 AND SUBJECT SUFFERED A NET LOSS OF USD362,477 IN 2007, AS COMPARED TO THE NET PROFIT OF USD208,386.}

^{HENCE, NET MARGIN FELL INTO NEGATIVE REGION OF 0.08% (2006: 0.42%). REVENUE:}

^{-SALE OF GOODS - 2007: USD46,903,288 (2006: USD49,889,968) -COMMISSION RECIEVED - 2006: USD717 (2006: USD2,441)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT BE EXPECTED IF REVENUE AND EARNINGS CANNOT BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE NOT FORTHCOMING. IN ADDITION, ITS INTEREST COVERAGE WAS INADEQUATE AS SHOWN BY ITS NEGATIVE INTEREST COVERAGE RATIO OF 2.18 TIMES (2006: 3.57 TIMES).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{BANK BORROWINGS}

^{THE BANK FACILITIES ARE SECURED BY JOINT AND SEVERAL GUARANTEES FOR}

^{US$12.5 MILLION (2006: US$9.2 MILLION) BY TWO OF THE DIRECTORS}

^{THE BANK BORROWINGS HAVE AN AVERAGE MATURITY OF 1 MONTH}

^{(2006: 1 MONTH) FROM THE END OF THE FINANCIAL YEAR.}

^{CONTINGENT LIABILITIES (UNSECURED)}

^{BILLS DISCOUNTED - 2007: US$80,769 (2006: US$615,773)}

^{BANKERS GUARANTEES (UNSECURED)}

^{AS AT THE BALANCE SHEET DATE}

^{THE COMPANY HAS ISSUED STANDBY LETTERS OF GUARANTEES FOR USD50,000 (2006: USD50,000) TO THIRD PARTY AS SECURITY TOWARDS TRADING ACCOUNTS. THE COMPANY HAS ALSO GIVEN CORPORATE GUARANTEES TOTALLING OF US $633,040 (2006: NIL) TO BANK AS SECURITY FOR BANK FACILITIES GRANTEDTO A RELATED PARTY.}

^{THE INCOME RISING ON PROVIDING THESE FINANCIAL GUARANTEES IS IMMATERIAL. IT IS THEREFORE NOT BEEN RECOGNISED IN THE FINANCIAL STATEMENTS.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 21/12/1993 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "KAWAMIN PACIFIC PTE LTD".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 1,850,000 SHARES, OF A VALUE OF S$1,850,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{(1) OTHER SERVICE ACTIVITIES}

^{TRADING IN RAW MATERIALS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITY OF THE COMPANY IS THAT IF TRADING IN INDUSTRIAL RAW MATERIALS.}

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

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:}

^{* GLOBAL PROCUREMENT AND SUPPLIER OF INDUSTRIAL RAW MATERIALS TO}

^{ASIAN MANUFACTURERS}

^PRODUCTS:

^{* BULK COMMODITIES}

^{- CEMENT CLINKER}

^{- SLAG - GRANULATED BLAST FURNACE SLAG}

^{- GYPSUM}

^{- COAL}

^{- FERTILIZERS}

^{* FERRO ALLOYS}

^{- FERRO SILICON}

^{- FERRO SILICON MANGANESE}

^{- FERRO CHROME}

^{- FERRO MANGANESE}

^{- FERRO MOLYBDENUM}

^{- FERRO PHOSPHOROUS}

^{* MINERAL ORES}

^{- IRON ORE}

^{- FLUORSPAR: LUMP, POWDER}

^{- FUSED MAGNESITE}

^{- DEAD BURNT MAGNESITE}

^{- LEAD / ZINC CONC.}

^{- MN ORE / CR ORE & CONC.}

^{* NON FERROUS METALS}

^{- BASE METALS}

^{- MINOR METALS}

^{- SEMIS}

^{- METAL ALLOYS}

^{- DROSS / SLAGS / RESIDUES}

^{* STEEL}

^{- FLAT PRODUCTS}

^{- LONG PRODUCTS}

^{- TUBES AND PIPES}

^{- STRUCTURAL STEEL}

^{- STAINLESS STEEL}

^{* SCRAP}

^{- ALUMINIUM SCRAP}

^{- BRASS}

^{- COPPER}

^{- LEAD}

^{- ZINC}

^{- STEEL SCRAP}

^{SUBJECT IS A MEMBER OF FOLLOWING ENTITY:}

^{* SINGAPORE INDIAN CHAMBERS OF COMMERCE & INDUSTRY}

^{FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS GATHERED:}

^{SUBJECT ENGAGES IN BOTH LOCAL AND OVERSEAS SALES.}

^{IMPORT COUNTRIES:}

^{* ASIA}

^{TERMS OF PAYMENT:}

^{* LETTER OF CREDIT}

^{NUMBER OF EMPLOYEES:}

^{* 8}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE}

^{THE ULTIMATE AND IMMEDIATE HOLDING COMPANY IS ASIAMIN LIMITED, A COMPANY INCORPORATED IN HONG KONG.}

^{REGISTERED & BUSINESS ADDRESSES:}

^{43D BEACH ROAD}

^{#05-00 EVERSHINE & CENTURY COMPLEX}

^{SINGAPORE 189681}

^{DATE OF CHANGE OF ADDRESS: 13/01/2007}

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

^{E-MAIL: mail@kawamin.com}

MANAGEMENT

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

^{1) TAKAFUMI KAWAMURA, A JAPANESE}

^{- BASED IN JAPAN}

^{2) HEMANT KUMAR HASMUKHRAI AMIN, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE:}

^{STEEL TUBES OF SINGAPORE (PTE) LTD}

^{3) RACHNA AMIN, A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIP 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.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

^{THE SINGAPORE ECONOMY GREW AT A HEALTHY PACE OF 6.7% IN 1Q 2008. ON AN}

^{ANNUALISED QUARTER-ON-QUARTER BASIS, GROWTH ROSE BY 14.6%, IN CONTRAST TO THE}

^{4.8% DECLINE IN THE PREVIOUS QUARTER.}

^{THE MANUFACTURING SECTOR ROSE BY 12.4% IN 1Q 2008, HIGHER THAN THE 0.2% IN 4Q}

^{2007. THE GROWTH WAS MAINLY DRIVEN BY BIOMEDICAL MANUFACTURING.}

^{ELECTRONICS, TRANSPORT ENGINEERING AND CHEMICALS SECTOR GREW AT A SLOWER PACE}

^{WHILE PRECISION ENGINEERING CONTRACTED.}

^{THE FINANCIAL SERVICES SECTOR ROSE BY A SMALLER 13% IN 1Q 2008, FOLLOWING A 16%}

^{GAIN IN 4Q 2007. GROWTH WAS ACROSS THE BOARD, SUPPORTED BY ROBUST EXPANSIONS IN}

^{BOTH THE DOMESTIC AND OFFSHORE BANKING SEGMENTS.}

^{HOWEVER, THE DOMESTIC STOCK MARKET FARED POORLY DUE TO CONCERNS OVER THE TURMOIL}

^{IN GLOBAL FINANCIAL MARKET. COMMERCIAL BANK LOANS REGISTERED THE HIGHEST GROWTH,}

^{WITH FIRM GAINS ACROSS MOST NON-BANK CUSTOMERS, PARTICULARLY BUILDING AND}

^{CONSTRUCTION.}

^{THE CONSTRUCTION SECTOR RECORDED HIGH GROWTH, RISING BY 15%, FOLLOWING THE}

^{ROBUST 24% GROWTH IN 4Q 2007.}

^{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.}

^{THE TRANSPORT AND STORAGE SECTOR ROSE BY 5.5% IN 1Q 2008, MARGINALLY HIGHER THAN}

^{5.4% IN 4Q 2007.}

^{THE HOTELS AND RESTAURANTS SECTOR GREW BY A SLIGHTLY SMALLER 2.4% IN 1Q 2008,}

^{FOLLOWING THE 2.5% GROWTH IN 4Q 2007.}

^{THE INFORMATION AND COMMUNICATIONS SECTOR ROSE 6.8% IN 1Q 2008, HIGHER THAN THE}

^{6.1% IN 4Q 2007.}

^{THE BUSINESS SERVICES SECTOR EXPANDED BY 8.3%, SLIGHTLY SLOWER THAN THE 8.7%}

^{GAIN IN 4Q 2007. GROWTH WAS LED BY REAL ESTATE, AND ARCHITECTURAL AND}

^{ENGINEERING SEGMENTS. OFFICE RENTS IN THE CENTRAL REGION CONTINUED TO RISE AT A}

^{MORE MODERATE PACE. THE OCCUPANCY RATE FOR OFFICE SPACE EASED SLIGHTLY BUT}

^{SUPPLY REMAINED TIGHT.}

^NEWS

^{BUMPY YEAR AHEAD, SAYS PM}

^{AS EXPECTED, THE PRIME MINISTER'S NATIONAL DAY MESSAGE REFLECTED, AS HE SAID IN}

^{HIS VERY OPENING LINE, A SOMEWHAT GUARDED MOOD.}

^{MR LEE HSIEN LOONG GAVE A SET OF STATISTICS WHICH SHOWED THAT SINGAPORE,}

^{ALTHOUGH IT MANAGED TO HOLD UP FOR A WHILE, IS SHOWING THE EFFECT OF THE STRAIN}

^{RUNNING THROUGH THE UNITED STATES ECONOMY, WHICH IS BEING SQUEEZED BY A HOUSING}

^{CRSIS, A FINANCIAL SYSTEM UNDER PRESSURE AND A CONSUMER WHO IS SPENDING LESS.}

^{GROWTH FOR THE FIRST HALF OF THE YEAR WAS 4.5%, A DROP FROM THE 7.6% GROWTH OVER}

^{THE SAME PERIOD LAST YEAR. AND FOR THE WHOLE YEAR, THE GOVERNMENT HAS REVISED}

^{ITS GROWTH FORECAST DOWN TO BETWEEN 4 AND 5%, FROM THE EARLIER RANGE BETWEEN 4}

^{AND 6%. IN COMPARISON, SINGAPORE'S ECONOMY GREW 7.5% LAST YRAR.}

^{MR LEE IS NOT ONLY WORRIED ABOUT THE SITUATION IN THE US. ASIA, AND MORE}

^{IMPORTANTLY, ASEAN ARE VERY MUCH ON HIS RADAR SCREEN.}

^{ECHOING THE SAME SENTIMENTS IN A SPEECH HE GAVE AT THE ASEAN MINISTERIAL MEETING}

^{LAST MONTH, HE SAID: "IN SOUTH-EAST ASIA, ASEAN HAS BECOME LESS PROMINENT ON THE}

^{RADAR SCREEN OF INVESTORS, WHO ARE MORE FOCUSED ON OPPORTUNITIES IN CHINA AND}

^INDIA.

^{"SEVERAL ASEAN COUNTRIES ARE PRE-OCCUPIED WITH DOMESTIC, ECONOMIC AND POLITICAL}

^{PROBLEMS. HOWEVER, ALL ASEAN COUNTRIES KNOW THAT WE MUST WORK TOGETHER RESOLUTEY}

^{AS A GROUP.}

^{"SINGAPORE WILL DO OUR PART. BUT WE MUST ALSO MAINTAIN OUR REPUTATION IN A}

^{TURBULENT REGION AS AN ECONOMY THAT IS COMPETITIVE, A SOCIETY THAT IS COHESIVE}

^{AND A GOVERNMENT THAT IS HONEST AND COMPETENT.}

^{LOOKING A LITTLE AHEAD, MR LEE SAID:"THE DIFFICULTIES WILL PROBABLY DRAG ON WELL}

^{INTO NEXT YEAR BEFORE GETTING BETTER......WE MUST THEREFORE PREPARE OURSELVES}

^{FOR A BUMPY YEAR AHEAD.}

^{INFLATION IS AN ISSUE, "WHICH I AM SURE IS AT THE TOP OF YOUR MINDS". AND SOME}

^{GOVERNMENT DECISIONS SUCH AS GST AND ERP INCREASES DO RAISE THE COST OF LIVING.}

^{BUT THE PRIME MINISTER SAID, THEY ARE ESSENTIAL,"OTHERWISE WE WOULD NOT DO THEM:}

^{THE GST ALLOWS US TO FINANCE WORKFARE AND OTHER SCHEMES TO HELP LOWER INCOME}

^{SINGAPOREANS OVER THE LONG-TERM AND THE ERP KEEPS OUR ROADS FREE-FLOWING.}

^{IN ONE WORD, PEOPLE, BOTH IN QUALITY AND QUANTITY. "TO UPGRADE OUR ECONOMY, WE}

^{MUST INVEST IN OUR PEOPLE, ESPECIALLY THROUGH EDUCATION,"HE SAID. POLYTECHNICS}

^{AND ITES ARE BEING IMPROVED. UNIVERSITY PLACES ARE BEING EXPANDED. THE FOURTH}

^{UNIVERSITY WILL BE UP AND READY IN CHANGI IN THREE YEARS.}

^{AND FOR WHAT IS LIKELY TO BE THE HOT TOPIC IN THE MONTHS TO COME, MR LEE}

^{SAID:"…WE ALSO NEED ENOUGH BABIES TO REPLACE OURSELVES. "WE HAVE TO TAKE THIS}

^{SERIOUSLY. MARRIAGE AND PARENTHOOD ARE PERSONAL DECISIONS. BUT WE CAN CREATE AN}

^{ENVIROMENT WHERE SINGAPOREANS SEE THEM AS A NATURAL AND IMPORTANT PART OF LIFE,}

^{AND WHERE YOUNG PEOPLE GET SUPPORT IN STARTING FAMILIES.}

^{THE PRIME MINISTER ENDED ON A SOMEWHAT UPBEAT MOOD: "DESPITE THE UNCERTAINTIES}

^{IN OUR REGION AND IN THE WORLD ECONOMY, SINGAPORE IS IN A STRONG POSITION. IN}

^{GOOD TIMES AND BAD, WE HAVE STAYED UNITED, LOOKED OVER THE HORIZON AND MOVED}

^{CAREFULLY, BUT RESOLUTELY, FORWARD.}

^OUTLOOK

^{THE COMPOSITE LEADING INDEX (CLI) FELL 2.6% IN 1Q 2008, FOLLOWING THE 0.8% GAIN}

^{IN 4Q 2007. OF THE NINE COMPONENTS WITHIN THE INDEX, FIVE COMPONENTS RECORDED}

^{DECLINES WHILE FOUR COMPONENTS IMPROVED. THE FIVE INDICATORS THAT REGISTERED}

^{DECLINES ARE THE STOCK PRICE, US PURCHASING MANAGER'S INDEX, WHOLESALE TRADE,}

^{STOCK OF FINISHED GOODS AND DOMESTIC LIQUIDITY.}

^{IN THE LAST REVIEW IN FEBRUARY 2008, THE MINISTRY OF TRADE AND INDUSTRY LOWERED}

^{THE 2008 GDP GROWTH FORECAST FROM 4.5-6.5% TO 4.0-6.0%, TAKING INTO ACCOUNT THE}

^{DOWNSIDE RISKS OF A US DOWNTURN. SINCE THEN, THE SLOWDOWN IN THE MAJOR ECONOMIES}

^{HAS PANNED OUT LARGELY AS EXPECTED. THE IMF AND MARKET CONSENSUS HAVE LOWERED}

^{THEIR ECONOMIC FORECASTS ACROSS THE BOARD BUT ASIAN ECONOMIES SUCH AS CHINA AND}

^{INDIA ARE FORECASTED TO RECORD STRONG GROWTH FOR 2008. THERE IS ALSO A RESPITE}

^{IN US FINANCIAL MARKETS - THE MAIN SOURCE OF DOWNSIDE RISK TO THE FORECAST -}

^{WITH THE RESCUE OF BEAR STEARNS BY THE FEDERAL RESERVE IN MARCH. WHILST CREDIT}

^{CONDITIONS WILL REMAIN WEAK AND DRAG THE REAL ECONOMY, THERE IS GREATER}

^{CONFIDENCE THAT TIMELY AND RESOLUTE POLICY ACTIONS WILL BE TAKEN AS NEEDED TO}

^{FORESTALL A FINANCIAL MELTDOWN.}

^{NONETHELESS, THERE REMAINS THE DOWNSIDE RISK OF A DEEPER THAN EXPECTED US}

^{RECESSION DUE TO FINANCIAL TURBULENCE OR SHARP DECLINES IN ASSET VALUES. THERE}

^{COULD BE FURTHER WRITE-DOWNS AND LOSSES IN BANKING INSTITUTIONS WHICH COULD SET}

^{OFF ANOTHER ROUND OF INCREASED RISK AVERSION. GLOBAL DEMAND COULD SLOW FURTHER}

^{AS THE FINANCIAL MARKETS' TURBULENCE TRANSLATE INTO HIGHER COSTS OF FUNDS AND}

^{LOWER INCOMES.}

^{IN THE FINANCIAL SERVICES INDUSTRY, MAJORITY OF THE BANKS AND FINANCE COMPANIES}

^{FORECAST BUSINESS OUTLOOK TO REMAIN STABLE IN THE COMING MONTHS. HOWEVER, STOCK,}

^{SHARE AND BOND BROKERS, FUND MANAGERS AND INSURANCE COMPANIES ARE LESS UPBEAT}

^{ABOUT THE BUSINESS OUTLOOK IN THE MONTHS AHEAD.}

^{IN THE REAL ESTATE INDUSTRY, A NET WEIGHTED BALANCE OF 9% OF FIRMS,}

^{EXPECT BUSINESS TO BE BRISK FOR THE COMING MONTHS.}

^{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. IT APPLIES TO THOSE IN THE TROPICAL PRODUCE, WEARING APPAREL AND}

^{FOOTWEAR, AND INDUSTRIAL MACHINERY AND EQUIPMENT SECTORS.}

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

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

^{JEWELLERY AND WATCHES FORECAST SLOWER BUSINESS AFTER THE FESTIVE PERIOD. AS A}

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

^{RETAILERS CONTINUE TO EXPRESS THEIR CONCERN.}

^{IN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 9% OF FIRMS}

^{FORECASTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE COMING MONTHS.}

IN THE SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 23% OF FIRMS,

EXPECT BUSINESS TO BE BRISK FOR THE COMING MONTHS WHILE A WEIGHTED 20% OF FIRMS

PROJECTS LESS FAVOURABLE BUSINESS CONDITIONS. MAJORITY OF THE FIRMS (A WEIGHTED

57%) EXPECT BUSINESS ACTIVITIES TO REMAIN AT SIMILAR LEVELS FOR THE COMING

MONTHS. THIS RESULTS IN A NET WEIGHTED BALANCE OF 3% OF FIRMS EXPECTING A

POSITIVE OUTLOOK. THIS MAGNITUDE IS SMALLER THAN

THE NET WEIGHTED BALANCE OF 22% REGISTERED IN THE SAME PERIOD FOR 2007.

^{HOTELIERS REMAIN BULLISH ON BUSINESS CONDITIONS IN THE MONTHS AHEAD, WITH A NET}

^{WEIGHTED BALANCE OF 69% OF HOTELIERS EXPECTING THEIR BUSINESSES TO RISE IN}

^{ANTICIPATION OF THE POSITIVE SENTIMENTS IN THE TOURISM INDUSTRY AND UPCOMING}

^{MAJOR EVENTS IN SINGAPORE SUCH AS COMMUNICASIA 2008 AND THE FORMULA ONE GRAND}

^{PRIX. IN THE CATERING TRADE INDUSTRY, BUSINESS CONDITIONS ARE EXPECTED TO BE}

^STABLE.

^{IN THE INFORMATION AND COMMUNICATIONS INDUSTRY, A NET WEIGHTED BALANCE OF 23% OF}

^{FIRMS PREDICTS BETTER BUSINESS, IN PARTICULAR THOSE ENGAGED IN MOTION PICTURE}

^{AND VIDEO, RADIO AND TELEVISION, SOUND RECORDING AND BROADCASTING ACTIVITIES.}

^{IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 7% OF}

^{FIRMS EXPECTS POSITIVE SENTIMENTS. THESE INCLUDE THOSE ENGAGED IN PROVIDING}

^{ADVERTISING SERVICES.}

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

^{SINGAPORE DEPARTMENT OF STATISTICS}

^TODAY

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.46.71
UK Pound	1	Rs.83.57
Euro	1	Rs.65.90

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