MIRA INFORM REPORT

Report Date :

12.09.2008

IDENTIFICATION DETAILS

Name :	ENSCO ASIA PACIFIC PTE LIMITED
Registered Office :	^300 Beach Road ^#10-01/02 The Concourse ^199555
Country :	Singapore
Financials (as on) :	31.12.2007
Date of Incorporation :	^19.03.1997
Com. Reg. No.:	^199701794E
Legal Form :	^Pte Ltd
Line of Business :	^Petroleum, Mining and Prospecting Services (Including Offshore ^Exploration Services); ^Provision Management Service Support to ^the Fleet of Drilling; ^Rigs in Ensco Group

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

ENSCO ASIA PACIFIC PTE LIMITED

Line Of Business 

^{PETROLEUM, MINING AND PROSPECTING SERVICES (INCLUDING OFFSHORE}

^{EXPLORATION SERVICES)}; ^{PROVISION MANAGEMENT SERVICE SUPPORT TO}

^{THE FLEET OF DRILLING}; ^{RIGS IN ENSCO GROUP}

Parent Company

^{ENSCO OCEANICS INTERNATIONAL}

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2007

COMPANY

Sales : USD 169,252

Networth : USD 2,883,383

Paid-Up Capital : USD 349,847

Net result : USD 759,417

Net Margin(%) : 448.69

Return on Equity(%) : 26.34

Leverage Ratio : 14.17

COMPANY IDENTIFICATION

^{Subject Company : ENSCO ASIA PACIFIC PTE. LIMITED}

^{Former Name : -}

^{Business Address : 300 BEACH ROAD}

^{#10-01/02 THE CONCOURSE}

^{Town : SINGAPORE}

^{Postcode : 199555}

^{County : -}

^{Country : Singapore}

^{Telephone : 6622 8900}

^{Fax : Not Listed}

^{ROC Number : 199701794E}

^{Reg. Town : -}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 19/03/1997}

^{Previous Legal Form : -}

^{Summary year : 31/12/2007}

^{Sales : 169,252}

^{Networth : 2,883,383}

^{Capital : -}

^{Paid-Up Capital : 349,847}

^{Employees : 20}

^{Net result : 759,417}

^{Share value : -}

^{Auditor : KPMG}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 19/03/1997}

PRINCIPAL(S)

^{GILLES LUCA G5816871N Director}

DIRECTOR(S)

^{MARSHALL BALLARD III 015520799 Director}

^{Appointed on : 01/09/2002}

^{Street : 2736 DANIEL AVENUE}

^{TEXAS 75205-1512}

^{Town : DALLAS}

^{Postcode : -}

^{Country : United States}

^{JOHN MARK BURNS 710222558 Director}

^{Appointed on : 03/07/2008}

^{Street : 500 N. AKARD STREET, SUITE 4300}

^{Town : DALLAS}

^{Postcode : 75201}

^{Country : United States}

^{STEVEN JOSEPH BRADY 712441333 Director}

^{Appointed on : 31/10/2007}

^{Street : C/O DUSIT DUBAI HOTEL, SUITE 716}

^{133 SHEIKH ZAYED ROAD}

^{Town : DUBAI}

^{Postcode : -}

^{Country : United Arab Emirates}

^{GILLES LUCA G5816871N Director}

^{Appointed on : 01/04/2006}

^{Street : 28 SCOTTS ROAD}

^#11-03

^{Town : SINGAPORE}

^{Postcode : 228223}

^{Country : Singapore}

^{ANTHONY ANNE CATHERINE S1347717E Company Secretary}

^{Appointed on : 07/02/2001}

^{Street : 8 LORONG 29 GEYLANG}

^#07-06

^{Town : SINGAPORE}

^{Postcode : 388064}

^{Country : Singapore}

^{LEOW HOCK MENG EDMUND S1597537G Company Secretary}

^{Appointed on : 11/04/1997}

^{Street : 17 WATTEN VIEW}

^{WATTEN ESTATE}

^{Town : SINGAPORE}

^{Postcode : 287135}

^{Country : Singapore}

ACTIVITY(IES)

^{OIL WELL DRILLING - CONSULTANTS Code: 15370}

^{PETROLEUM PRODUCTS Code: 16350}

^{BASED ON ACRA'S RECORD}

^{1) PETROLEUM, MINING AND PROSPECTING SERVICES (INCLUDING OFFSHORE}

^{EXPLORATION SERVICES);}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{ENSCO OCEANICS INTERNATIONAL 10,002 Company}

^{Street : FOURTH FLOOR, ONE CAPITAL PLACE}

^{P.O. BOX 847GT, GRAND CAYMAN}

^{BRITISH WEST INDIES}

^{Town : CAYMAN ISLAND}

^{Postcode : -}

^{Country : Cayman Islands}

HOLDING COMPANY

^{ENSCO OCEANICS INTERNATIONAL UF33501G %: 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIANT}

^{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: 30/07/2008}

^{Balance Sheet Date: 31/12/2007 31/12/2006}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Preliminary Exp 31,107,289}

^{Tangible Fixed Assets: 32,371 1,881}

^{Total Fixed Assets: 32,371 31,109,170}

^{Receivables: 31,566,680}

^{Cash,Banks, Securitis: 9,136,446 84,490}

^{Other current assets: 2,997,681 313,400}

^{Total Current Assets: 43,700,807 397,890}

^{TOTAL ASSETS: 43,733,178 31,507,060}

^{--- LIABILITIES}

^{Equity capital: 349,847 349,847}

^{Reserves: -198,705 -577,764}

^{Profit & lost Account: 2,732,241 1,972,824}

^{Total Equity: 2,883,383 1,744,907}

^{Other long term Liab.: - 27,988,862}

^{Total L/T Liabilities: 27,988,862}

^{Trade Creditors: 39,814,096 556,746}

^{Prepay. & Def. charges: 802,391 1,155,365}

^{Provisions: 17,261 61,180}

^{Other Short term Liab.: 216,047}

^{Total short term Liab.: 40,849,795 1,773,291}

^{TOTAL LIABILITIES: 40,849,795 29,762,153}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 169,252 173,285}

^{NET RESULT BEFORE TAX: 774,614 268,483}

^{Tax : 15,197 27,829}

^{Net income/loss year: 759,417 240,654}

^{Interest Paid: 1,960,907 3,491,120}

^{Depreciation: 11,667 1,882}

^{Directors Emoluments: 476,297 581,209}

^{Wages and Salaries: 2,730,108 3,191,647}

^{Financial Income: 2,577,083 3,593,593}

RATIOS

^{31/12/2007 31/12/2006}

^{Turnover per employee: 8,462.60 8,664.25}

^{Net result / Turnover(%): 4.49 1.39}

^{Fin. Charges / Turnover(%): 11.59 20.15}

^{Net Margin(%): 448.69 138.88}

^{Return on Equity(%): 26.34 13.79}

^{Return on Assets(%): 1.74 0.76}

^{Net Working capital: 2,851,012.00 -1,375,401.00}

^{Cash Ratio: 0.22 0.05}

^{Quick Ratio: 1.00 0.05}

^{Current ratio: 1.07 0.22}

^{Receivables Turnover: 67,142.51 0.00}

^{Leverage Ratio: 14.17 17.06}

^{Net Margin : (100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total fixed assets}

^{Net Working capital : Total current assets - Total short term liabilities}

^{Cash Ratio : Cash Bank securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank securities+ Receivables)/Total Short term liabilities}

^{Current ratio : Total current assets/Total short term liabilities}

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

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

FINANCIAL COMMENTS

^{THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 65.25% FROM US$1,744,907 IN FY 2006 TO US$2,883,383 IN FY 2007. THIS WAS DUE TO HIGHER ACCUMULATED PROFITS OF US$2,732,241 (2006: US $1,972,824); A RISE OF 38.49% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 97.46% (2006: 31.40%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$39,814,096 (2006: US$556,746).}

^{IN ALL, LEVERAGE RATIO FELL FROM 17.06 TIMES TO 14.17 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 RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO ROSE TO 1.07 TIMES, UP FROM 0.22 TIMES AND QUICK RATIO IMPROVED TO 1.00 TIMES FROM 0.05 TIMES IN FY 2006.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 3.07 TIMES FROM –US $1,375,401 IN FY 2006 TO US$2,851,012.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{* CASH AT BANKS - 2007: US$99,254 (2006: US$84,490)}

^{* FIXED DEPOSITS WITH BANK - 2007: US$9,037,192 (2006: -)}

^{PROFITABILITY:}

^{REVENUE POSTED A DECREASE OF 2.33% FROM US$173,285 IN FY 2006 TO US $169,252 BUT NET PROFIT ROSE BY 2.16 TIMES TO US$759,417 (2006: US $240,654). THIS COULD BE DUE TO LOWER EXPENSES BY 23.08% WHICH AMOUNTED TO US$5,356,767 (2006: US$6,964,104). HENCE, NET MARGIN ROSE TO 448.69% (2006: 138.88%).}

^{DEBT SERVICING:}

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

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{* AMOUNTS DUE FROM RELATED CORPORATIONS - 2007: - (2006: US}

^$31,107,289)

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 19/03/1997 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "ENSCO ASIA PACIFIC PTE. LIMITED".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 10,002 SHARES, OF A VALUE OF S$500,002.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{(1) PETROLEUM, MINING AND PROSPECTING SERVICES (INCLUDING OFFSHORE}

^{EXPLORATION SERVICES)}

^{PROVISION MANAGEMENT SERVICE SUPPORT TO THE FLEET OF DRILLING}

^{RIGS IN ENSCO GROUP}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES IS THE PROVISION OF MANAGEMENT SERVICE SUPPORT TO THE FLEET OF DRILLING RIGS IN THE ENSCO GROUP OPERATING IN THE ASIA PACIFIC AND MIDDLE EAST REGIONS.}

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

^{ABOUT ENSCO INTERNATIONAL:}

^{ENSCO INTERNATIONAL INCORPORATED IS ONE OF THE LEADING PROVIDERS OF OFFSHORE CONTRACT DRILLING SERVICES TO THE INTERNATIONAL OIL AND GAS INDUSTRY. THEY HAVE ONE OF THE LARGEST AND MOST CAPABLE OFFSHORE DRILLING RIG FLEETS IN THE WORLD WHICH COMPRISED OF 46 DRILLING RIGS,}

^{INCLUDING 44 JACKUP RIGS, ONE ULTRA-DEEPWATER SEMISUBMERSIBLE RIG AND ONE BARGE RIG. ADDITIONALLY, THEY HAVE SEVEN ULTRA-DEEPWATER SEMISUBMERSIBLE RIGS UNDER CONSTRUCTION.}

^{TTHEIR DRILLING RIGS ARE STRATEGICALLY LOCATED THROUGHOUT THE WORLD, WITH DRILLING OPERATIONS CONCENTRATED IN THE MAJOR GEOGRAPHIC REGIONS OF ASIA PACIFIC (WHICH INCLUDES ASIA, THE MIDDLE EAST, AUSTRALIA AND NEW ZEALAND), EUROPE/AFRICA, AND NORTH AND SOUTH AMERICA.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* OIL/GAS DRILLING CONTRACTOR}

^SERVICES:

^{* OIL AND GAS DRILLING AND EXPLORATION CONTRACTORS}

^{- EXPLORATION SERVICES, OIL AND GAS}

^{- ONSHORE DRILLING CONTRACTORS}

^{- OFFSHORE DRILLING CONTRACTORS}

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

^{* AMERICAN CHAMBER OF COMMERCE}

^{NUMBER OF EMPLOYEES:}

^{* 20 (AS OF 2007)}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL. ONLY MANAGED TO OBTAIN VERIFICATION OF THE ADDRESS.}

^{THE IMMEDIATE AND INTERMEDIATE HOLDING COMPANIES DURING THE FINANCIAL YEAR ARE ENSCO OCEANICS INTERNATIONAL COMPANY AND ENSCO OFFSHORE INTERNATIONAL COMPANY. BOTH COMPANIES ARE INCORPORATED IN THE CAYMAN ISLANDS. THE ULTIMATE HOLDING COMPANY DURING THE FINANCIAL YEAR IS ENSCO INTERNATIONAL INCORPORATED, A COMPANY INCORPORATED IN THE UNITED STATES OF AMERICA.}

^{REGISTERED ADDRESS:}

^{1 TEMASEK AVENUE}

^{#27-01 MILLENIA SINGAPORE}

^{SINGAPORE 039192}

^{DATE OF CHANGE OF ADDRESS: -}

^{BUSINESS ADDRESS:}

^{300 BEACH ROAD}

^{#10-01/02 THE CONCOURSE}

^{SINGAPORE 199555}

^{WEBSITE: http://www.enscous.com (ULTIMATE HOLDING COMPANY)}

^{EMAIL: -}

MANAGEMENT

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

^{1) MARSHALL BALLARD III, AN AMERICAN}

^{- BASED IN UNITED STATES OF AMERICA}

^{2) JOHN MARK BURNS, AN AMERICAN}

^{- BASED IN UNITED STATES OF AMERICA}

^{3) STEVEN JOSEPH BRADY, AN AMERICAN}

^{- BASED IN DUBAI}

^{4) GILLES LUCA, A FRENCH}

^{- BASED IN SINGAPORE}

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.45.40
UK Pound	1	Rs.83.15
Euro	1	Rs.65.74

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