Additional Information on Annual Report 2002

With reference to the letter dated 13 May 2003 from the Singapore Exchange Securities Trading Limited ("SGX-ST"), the Company would like to provide the following information required under Rule 1207(4)(d) of the Listing Manual in addition to those set out in the Annual Report of Sinwa KS Limited ("the Company").

The risk management policies and processes for the Company may be summarized as follows:-

We are dependent on the economic health of the countries we operate in.

Currently, we have operations in Singapore, UAE, Timor Leste (through our representative office) and the PRC (through our appointed marine supply and logistics companies) and we are therefore vulnerable to the political, economic and social conditions in these countries.

This is an inherent business risk faced by any businesses operating in these countries. The Group manages this risk by being prudent in all its major operating and investing decisions.

Financial risks management objectives and policies

Exposure to credit, liquidity, currency and interest rate risks arises in the normal course of the Group's business. The Group does not speculate in the currency markets. The existing primary financial instruments of the Group such as receivables, payables, loans and intercompany balances meet the definition of the financial assets and liabilities.

Credit risk

At the balance sheet date, approximately 18.3% of the trade receivables were from top five customers. Sales to these customers totalled 30.4% of the Group's sales for the year. These customers are regular customers of the Group and have no incidence of past bad debts records. There are no other significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.

The cash and cash equivalents of the Group are placed with reputable banks.

Liquidity risk

The Group monitors and maintains a level of cash and cash equivalents deemed adequate by management to finance the Group's operations and to mitigate the effects of fluctuations in cash flows.

Foreign currency risk

Currently, our business is conducted primarily in Singapore. Our revenues and purchases are predominantly denominated in Singapore dollars and therefore we do not have significant foreign exchange exposure for the year ended 31 December 2002.

The Group will continue to minimize its exposure to foreign currencies by trading in Singapore dollars.

Interest rate risk

As at 31 December 2002, the Group does not have any significant long term debt obligations and will not be materially affected by any changes in interest rates relating to long term debt obligations.