MIRA INFORM REPORT

Report Date :

16.03.2011

IDENTIFICATION DETAILS

Name :	DENHAM CAPITAL ASIA PACIFIC PTE. LTD.
Registered Office :	9 Battery Road #15-01 Straits Trading Building, Singapore 049910
Country :	Singapore
Date of Incorporation :	29.12.2009
Com. Reg. No.:	200924091W
Legal Form :	Pte Ltd
Line of Business :	Fund Management Activities; Fund Management

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	Sgd 37,000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Singapore	a1	a1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Subject Company

DENHAM CAPITAL ASIA PACIFIC PTE. LTD.

Line Of Business 

FUND MANAGEMENT ACTIVITIES; FUND MANAGEMENT

Parent Company

DENHAM CAPITAL MANAGEMENT LP

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

Sales : NA

Networth : NA

Paid-Up Capital : S$250,000

Net result : NA

Net Margin(%) : NA

Return on Equity(%) : NA

Leverage Ratio : NA

Rating

Credit Opinion : CREDIT LINE TO A MAXIMUM OF SGD 37,000 CAN BE CONSIDERED

COMPANY IDENTIFICATION

Subject Company :	DENHAM CAPITAL ASIA PACIFIC PTE. LTD.
Business Address:	9 BATTERY ROAD #15-01 STRAITS TRADING BUILDING
Town:	SINGAPORE
Postcode:	049910
Country:	Singapore
Telephone:	6536 4107
ROC Number:	200924091W

SUMMARY

Legal Form:	Pte Ltd
Date Inc.:	29/12/2009
Summary year :
All amounts in this report are in :	SGD
Sales:
Capital:
Paid-Up Capital:	250,000
Net result :
Share value:

 
BASED ON ACRA'S RECORD 
 
  NO OF SHARES  CURRENCY  AMOUNT 
ISSUED ORDINARY  250,000  SGD  250,000.00  
PAID-UP ORDINARY  -  SGD  250,000.00
 
 

AUDITOR

 
PRICEWATERHOUSECOOPERS LLP

REFERENCES

Credit Opinion:

CREDIT LINE TO A MAXIMUM OF SGD 37,000 CAN BE CONSIDERED

Litigation:	No
Company status :	TRADING
Started :	29/12/2009

PRINCIPAL(S)

RIAZ QAMAR SIDDIQI

G5051417Q

Director

DIRECTOR(S)

MASTURA BINTE MASWARI	S6821560I	Company Secretary
Appointed on :	01/01/2010
Street :	490A TAMPINES STREET 45 #04-203
Town:	SINGAPORE
Postcode:	520490
Country:	Singapore

ABDUL JABBAR BIN KARAM DIN	S6936625B	Company Secretary
Appointed on :	01/01/2010
Street :	21 SIGLAP HILL FRANKEL ESTATE
Town:	SINGAPORE
Postcode:	456076
Country:	Singapore

JOHN PATRICK COLLINS	223166963	Director
Appointed on :	18/02/2010
Street :	14 OLD PLANTER'S ROAD BEVERLY MA 01915
County:	MA
Country:	United States

PAUL MICHAEL WINTERS	427094031	Director
Appointed on :	29/12/2009
Street :	41 AMHERST ROAD, WABAN MA 02468
County:	MA
Country:	United States

RIAZ QAMAR SIDDIQI	G5051417Q	Director
Appointed on :	19/10/2010
Street :	7 ORANGE GROVE ROAD #04-207 TREETOPS EXECUTIVE RESIDENCES
Town:	SINGAPORE
Postcode:	258355
Country:	Singapore

ACTIVITY(IES)

Activity Code:

12100

INVESTMENT MANAGEMENT

 
BASED ON ACRA'S RECORD 
1) FUND MANAGEMENT ACTIVITIES; FUND MANAGEMENT

SHAREHOLDERS(S)

DENHAM CAPITAL MANAGEMENT LP

250,000

Company

Street :	200 CLARENDON STREET, 25TH FLOOR MA 02116
Town:	BOSTON
County:	MA
Country:	United States

HOLDING COMPANY

DENHAM CAPITAL MANAGEMENT LP

T10UF0268H

100%

PAYMENT HISTORY AND EXPERIENCES

Trade Morality:	AVERAGE
Liquidity :	UNKNOWN
Payments :	UNKNOWN
Trend :	UNKNOWN
Financial Situation:	UNKNOWN

FINANCIAL COMMENTS

THERE IS NO FINANCIAL STATEMENT AVAILABLE AT THE TIME OF THIS REPORT. 
IN REPLACEMENT, AN ADVERSE CHECK IS CONDUCTED ON ITS LOCAL DIRECTORS. 
 
HOWEVER, ADVERSE CHECK CANNOT BE CONDUCTED AS ALL ITS DIRECTORS ARE 
FOREIGNERS.

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 
15/03/2011 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS 
PRESENT NAMESTYLE AS "DENHAM CAPITAL ASIA PACIFIC PTE. LTD.". 
  
AS AT 09/03/2011, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF
250,000 SHARES, OF A VALUE OF S$250,000. 
 
PRINCIPAL ACTIVITIES: 
SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY 
AUTHORITY (ACRA) BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:
1) FUND MANAGEMENT ACTIVITIES; FUND MANAGEMENT 
  
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED: 
 
BACKGROUND:
DENHAM CAPITAL IS A PRIVATE EQUITY FIRM FOCUSED ON ENERGY AND 
COMMODITIES, WITH OVER $4.3 BILLION OF ASSETS UNDER MANAGEMENT. THEIR 
INVESTMENT PROFESSIONALS APPLY THEIR DEEP OPERATIONAL AND INDUSTRY 
EXPERIENCE IN WORKING IN PARTNERSHIP WITH MANAGEMENT TEAMS TO ACHIEVE 
LONG-TERM INVESTMENT OBJECTIVES. DENHAM CAPITAL INVESTS ACROSS THE
CAPITAL STRUCTURE AND ACROSS ALL STAGES OF THE CORPORATE AND ASSET 
LIFECYCLE, FROM DEVELOPMENT PROJECTS TO MATRUE, OPERATING BUSINESSES. 
THEY USE SOLUTION-ORIENTED CAPITAL STRUCTURES TO CAPTURE DISLOCATIONS 
OF UNDERLYING VALUE. DENHAM CAPITAL TYPICALLY TARGETS EQUITY 
INVESTMENTS OF $50 MILLION TO $250 MILLION.
 
ATTEMPTS WERE MADE TO CALL SUBJECT HOWEVER THERE WAS NO ANSWER 
THEREFORE NO OTHER TRADE INFORMATION WAS AVAILABLE VIA TELE-INTERVIEW .
 
REGISTERED AND BUSINESS ADDRESS: 
9 BATTERY ROAD 
#15-01 STRAITS TRADING BUILDING 
SINGAPORE 049910 
DATE OF CHANGE OF ADDRESS: 01/02/2010
- OWNED BY: STRAITS DEVELOPMENTS PTE LTD 
  
ADDRESS PROVIDED BY CLIENT: 
ONE GEORGE STREET 
#07-03
SINGAPORE  
- UNABLE TO VERIFY 
- ADDRESS AS STATED ON WEBSITE 
 
WEBSITE: http://www.denhamcapital.com/Default.aspx (GROUP)
 
EMAIL:  investments@denhamcapital.com 

MANAGEMENT

 
THE DIRECTORS AT THE TIME OF THIS REPORT ARE: 
 
1) JOHN PATRICK COLLINS, AN AMERICAN 
 - BASED IN UNITED STATES OF AMERICA.
 
2) PAUL MICHAEL WINTERS, AN AMERICAN  
 - BASED IN UNITED STATES OF AMERICA. 
 
3) RIAZ QAMAR SIDDIQI, AN AMERICAN 
 - BASED IN SINGAPORE.

Singapore’s Country Rating 2010

Investment Grade

THE SINGAPORE ECONOMY WAS SIGNIFICANTLY AFFECTED BY THE CRISIS DUE TO THE CONTRACTION OF EXPORTS, WHICH REPRESENT 210% OF GDP. SALES ABROAD OF MANUFACTURED PRODUCTS (ELECTRONICS, ENGINEERING, PHARMACEUTICALS, PETROCHEMICALS) AND SERVICES (FINANCIAL SERVICES, TOURISM, TRANSPORT) WERE AFFECTED BY THE WEAK PERFORMANCE OF THE MAIN TRADING PARTNERS (MALAYSIA, UNITED STATES, CHINA, JAPAN). WITH THE ECONOMY'S SLIDE INTO RECESSION, THE CENTRAL BANK REDUCED INTEREST RATES SEVERAL TIMES AND A STIMULUS PROGRAMME REPRESENTING 8% OF GDP WAS IMPLEMENTED IN JANUARY LAST YEAR. ALTHOUGH INCREASED PUBLIC SPENDING ON INFRASTRUCTURE, TRANSPORT, HEALTH AND EDUCATION ENABLED THE AUTHORITIES TO LIMIT THE CONTRACTION OF INVESTMENT, THAT DID NOT SUFFICE TO OFFSET THE DROP IN PRIVATE INVESTMENT. THE GOVERNMENT MOREOVER GRANTED DEFAULT GUARANTEES OF UP TO 80% ON NEW LOANS. AND HOUSEHOLD CONSUMPTION WAS SUPPORTED BY A REDUCTION OF INCOME TAX AND MEASURES TO FOSTER EMPLOYMENT. 

IN Q1 2010, GROWTH REBOUNDED SIGNIFICANTLY (15.5% Y/Y). FOR THE ENTIRE YEAR, GROWTH IS EXPECTED TO REMAIN HIGH (8.9%) THANKS TO THE POSITIVE IMPACT ON DOMESTIC DEMAND OF THESE EXPANSIONARY MONETARY AND FISCAL POLICIES AND THE GRADUAL RECOVERY OF THE WORLD ECONOMY. INVESTMENT, CONSUMPTION, AND NET EXPORTS ARE AGAIN EXPECTED TO CONTRIBUTE POSITIVELY TO GROWTH. ON THE SUPPLY SIDE, THE CONSTRUCTION SECTOR WILL BENEFIT AGAIN THIS YEAR FROM INCREASED PUBLIC SPENDING WHILE ELECTRONICS, PHARMACEUTICALS, PETROCHEMICALS, FINANCIAL SERVICES, AND TOURISM WILL GRADUALLY RECOVER. THE COFACE PAYMENT MONITORING ARE THUS EXPECTED TO REFLECT THIS FAVOURABLE TREND. SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA UNDERPINNED BY AN EFFECTIVE LEGAL SYSTEM THAT FACILITATES CLAIM COLLECTION AND A HIGH LEVEL OF FINANCIAL TRANSPARENCY.

STRONG FINANCIAL POSITION

DESPITE IMPLEMENTATION OF A BROAD STIMULUS PROGRAMME, THE COUNTRY CONTINUED TO RUN A SLIGHT FISCAL SURPLUS IN 2009, WHICH IS EXPECTED TO GROW IN 2010. PUBLIC SECTOR FINANCES HAVE THUS REMAINED SOLID.

DESPITE THE CONTRACTION OF THE CURRENT ACCOUNT SURPLUS, EXTERNAL ACCOUNTS ALSO REMAINED LARGELY IN SURPLUS LAST YEAR. IN 2010, THE CURRENT ACCOUNT SURPLUS WILL LIKELY REMAIN STABLE AS RESULT OF THE MORE RAPID RECOVERY OF IMPORTS COMPARED TO EXPORTS, ASSOCIATED WITH THE RISE OF RAW MATERIAL PRICES AND THE REBOUND OF DOMESTIC DEMAND. BESIDES, THE VOLATILITY OF PORTFOLIO INVESTMENT FLOWS THAT DEVELOPED AFTER THE LEHMAN BROTHERS BANKRUPTCY EASED IN 2009. IN 2010, THE HIGH LEVEL OF FOREIGN EXCHANGE RESERVES IS EXPECTED TO CONTINUE TO ENDOW THE COUNTRY WITH GOOD CAPACITY TO WITHSTAND SUDDEN CAPITAL.

MOREOVER, DESPITE THE INTERNATIONAL FINANCIAL TURMOIL AND THE EXPOSURE OF SOME BANKS TO SUBPRIMES AND LEHMAN BROTHERS, THE BANKING SYSTEM IS STILL SOLID THANKS TO SATISFACTORY RISK MANAGEMENT, EFFECTIVE OVERSIGHT, AND HIGH SOLVENCY AND LIQUIDITY RATIOS. 

ASSETS

· VERY HIGH QUALITY-COMPETITIVENESS

· DEVELOPMENT OF HIGH VALUE-ADDED SECTORS (CHEMICALS, PHARMACEUTICALS, FINANCE)

· STRONG FDI INFLOWS THANKS TO AN ADVANTAGEOUS TAX REGIME, POLITICAL STABILITY AND AN EXCELLENT BUSINESS ENVIRONMENT

· MAJOR EXPORTER OF CAPITAL IN ASIA VIA THE PUBLIC HOLDING COMPANY TEMASEK

WEAKNESSES

• ECONOMY DEPENDENT ON FOREIGN DEMAND
• SHORTAGES OF SKILLED LABOUR
• AGEING POPULATION
• LATENT SOCIAL TENSIONS IN A CONTEXT OF INCREASING INEQUALITY AND GROWING DURABLE UNEMPLOYMENT AMONG THE LEAST SKILLED

FINANCIAL SERVICES SECTOR

PAST PERFORMANCE

THE FINANCIAL SERVICES SECTOR RECORDED FURTHER GROWTH OF 10.0% IN 2Q 2010, FOLLOWING THE 19.0% GROWTH IN 1Q 2010.

PERFORMANCE IN BOTH THE SENTIMENT-SENSITIVE AND CORE FINANCIAL CLUSTERS WAS MIXED. COMPARED TO A YEAR AGO, ACTIVITY IN THE FOREX MARKET GREW 13.0%. THE WEALTH ADVISORY SERVICES ALSO BENEFITED FROM NET INFLOWS INTO THE REGION. IN CONTRAST, DOMESTIC STOCKMARKET TURNOVER VOLUMES DECLINED 34.0%, WEIGHED DOWN BY CONCERNS OVER THE GLOBAL RECOVERY.

ACTIVITY IN THE FINANCIAL INTERMEDIATION CLUSTER RECORDED POSITIVE GAINS IN 2Q 2010, SUPPORTED BY EXPANSIONS IN BOTH THE ASIAN CURRENCY UNIT (ACU) AND DOMESTIC BANKING UNIT (DBU) MARKETS. IN PARTICULAR, DBU NON-BANK LENDING ROSE BY 9.0%, LED BY AN INCREASE IN LOANS TO THE GENERAL COMMERCE SECTOR (26.0%) AS WELL AS IN CONSUMER HOUSING LOANS (22.0%). HOWEVER, ACU INTERBANK LENDING WAS MORE MUTED ON ACCOUNT OF WEAKER ACTIVITY IN EUROPE AND THE AMERICAS.

NEWS

BANKS FEEL CHILL OF NEW PROPERTY RULES

SOME BANKS ARE BEGINNING TO FEEL THE CHILL OF PROPERTY COOLING MEASURES, A MONTH AFTER TOUGHER HOME OWNERSHIP RULES WERE UNVEILED TO REIN IN SPECULATORS.

THEY HAVE REPORTED A DIP IN HOME LOAN APPLICATIONS, IN TANDEM WITH WEAKENED BUYING SENTIMENT AS THE MEASURES KICK IN.

MOST BANKS SAID, HOWEVER, THAT THERE HAS ALSO BEEN AN INCREASE IN THE NUMBER OF ENQUIRIES ON THE NEW MEASURES, AS BUYERS CONSIDER THEIR FINANCING OPTIONS.

A DBS BANK SPOKESMAN SAID YESTERDAY THAT IT HAS SEEN A RISE IN ENQUIRIES FROM CUSTOMERS OVER THE NEW MEASURES ON THEIR LOAN APPLICATIONS.

UNITED OVERSEAS BANK’S (UOB), HEAD OF LOANS DIVISION CHIA SIEW CHENG SAID THAT THE

PROPERTY MARKET HAS SLOWED DOWN, WITH POTENTIAL HOMEBUYERS STAYING ON THE SIDELINES TO ASSESS THE IMPACT OF THE NEW MEASURES.

IT SEEMS THAT MOST PROPERTY DEVELOPERS, HOWEVER, ARE STILL PROCEEDING WITH THEIR LATEST PROJECT LAUNCHES, SHE SAID.

IT WAS A DIFFERENT STORY AT MAYBANK SINGAPORE, THOUGH. ITS HEAD OF CONSUMER BANKING HELEN NEO SAID THERE HAS BEEN NO SIGNIFICANT IMPACT IN TERMS OF LOAN APPLICATIONS.

THE TURNAROUND TIME FOR PROCESSING LOANS, THOUGH, HAS BEEN AFFECTED, OWING TO THE ADDITIONAL CHECKS REQUIRED AS A RESULT OF THE NEW GUIDELINES, SHE ADDED.

MS NEO SAID THAT WHILE NO CUSTOMERS HAD CANCELLED THEIR LOAN APPLICATIONS AS YET, MANY WERE TAKING A WAIT-AND-SEE STANCE, EVEN AS THE BANK RECEIVED A HIGHER NUMBER OF ENQUIRIES FROM PROSPECTIVE HOMEBUYERS.

THE NEW RULES, ANNOUNCED ON AUG 30, STATE THAT BUYERS WITH ONE OR MORE OUTSTANDING LOANS WILL HAVE TO STUMP UP A DOWNPAYMENT OF AT LEAST 30.0% OF THE PROPERTY’S PRICE, UP FROM 20.0% PREVIOUSLY.

AT LEAST 10.0% MUST BE IN CASH – UP FROM 5.0% BEFORE – BUT THE REMINDER CAN COME FROM THEIR CENTRAL PROVIDENT FUND (CPF) ACCOUNTS.

THIS MEANS THAT BUYERS WILL NOW BE ABLE TO BORROW UP TO ONLY 70.0% OF THE PROPERTY’S PURCHASE PRICE, INSTEAD OF 80.0% PREVIOUSLY.

A REPORT BY MOODY’S INVESTORS SERVICE EARLIER THIS MONTH SAID THAT SINGAPORE BANKS WILL BENEFIT OVER THE MEDIUM TERM, AS THEIR EXPOSURE TO HEAVILY INDEBTED CUSTOMERS AND FUTURE PROPERTY PRICE SHOCKS WILL BE REDUCED. THIS WILL ENABLE THEIR EARNINGS TO STABILISE DUE TO A DECLINE IN POTENTIAL LOAN LOSSES.

“IN THE SHORT TERM, HOWEVER, THESE BENEFITS WILL BE LESS OBVIOUS BECAUSE CREDIT COSTS ON HOUSING LOANS USUALLY REMAIN LOW UNTIL PROPERTY PRICES START FALLING. FURTHERMORE, A DECREASE IN LOAN DEMAND COULD NEGATIVELY IMPACT BANKS’ INTEREST INCOME,” THE REPORT SAID.

A HEALTHY PROPERTY SECTOR IS CRITICAL FOR THE THREE LOCAL BANKS – DBS, UOB AND OCBC BANK – MOODY’S SAID.

ALL HAVE “SIGNIFICANT EXPOSURES TO THE PROPERTY MARKET” – 52.0% TO 54.0% OF TOTAL LOANS AS OF JUNE 30 – THROUGH THEIR HOUSING LOANS AND LENDING TO THE CONSTRUCTION AND REAL ESTATE SECTORS, OF WHICH A MAJORITY OF BORROWERS ARE SINGAPOREAN.

ON THE GROUND, THE PICTURE IS NOT CLEAR YET. ALL EYES WERE ON HOI HUP SUNWAY DEVELOPMENT’S PREVIEW LAUNCH OF ITS 473-UNIT VACANZA@EAST – A FREEHOLD PROJECT IN LENGKONG TUJOH NEAR THE PAN-ISLAND EXPRESSWAY IN THE EAST – YESTERDAY. IT IS THE THIRD PROJECT TO BE LAUNCHED AFTER THE MEASURES WERE INTRODUCED.

IN THE FIRST PHASE OF THE PREVIEW, 141 UNITS WERE LAUNCHED, THE MAJORITY OF WHICH WERE TWO BEDROOM AND THREE BEDROOM APARTMENTS. HOI HUP SUNWAY, HOWEVER, DECLINED TO REVEAL SALES FIGURES.

OUTLOOK

IN THE FINANCIAL SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 37% OF FIRMS FORECASTS FAVOURABLE BUSINESS CONDITIONS FOR THE MONTHS ENDING DEC 2010. IN PARTICULAR, BANKS AND FINANCE COMPANIES, FUND MANAGERS AND INSURANCE COMPANIES FORECAST A POSITIVE BUSINESS CLIMATE IN THE MONTHS AHEAD.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

THE STRAITS TIMES

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.15
UK Pound	1	Rs.72.59
Euro	1	Rs.62.95

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	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

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%)

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