MIRA INFORM REPORT

Report Date :

9^th May 2006

IDENTIFICATION DETAILS

Name :	HOUSE OF GEMS PTE LTD

Registered Office :	^{545 Orchard Road, #08-06} ^{Far East Shopping Centre, 238882} ^Singapore

Date of Incorporation :	^18/07/1986

Com. Reg. No.:	^198601496N

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Dealers of all kinds of jewelleries, diamonds, gems and precious stones

RATING & COMMENTS

MIRA’s Rating :

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

HOUSE OF GEMS PTE LTD

Line Of Business

DEAL IN ALL KINDS OF JEWELLERIES, DIAMONDS, GEMS AND

PRECIOUS STONES

Parent Company

Financial Elements

FY 2005

COMPANY

Sales : S$26,104,711

Net worth : S$1,242,025

Paid-Up Capital : S$1,000,000

Net result : S$108,250

Net Margin(%) : 0.41

Return on Equity(%) : 8.72

Leverage Ratio : 18.27

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

^{Subject Company: HOUSE OF GEMS PTE LTD}

^{Former Name: -}

^{Business Address: 545 ORCHARD ROAD}

^#08-06

^{FAR EAST
SHOPPING CENTRE}

^{Town: SINGAPORE}

^{Postcode: 238882}

^{County: -}

^{Country: Singapore}

^{Telephone: 6732 2877}

^{Fax: 6235 1946}

^{ROC Number: 198601496N}

^{Reg. Town: -}

SUMMARY

^{Legal Form: Exempt
Pte Ltd}

^{Date Inc.: 18/07/1986}

^{Previous Legal Form: -}

^{Summary year: 30/06/2005}

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

^{Sales: 26,104,711}

^{Net worth: 1,242,025}

^{Capital: 1,000,000}

^{Paid-Up Capital: 1,000,000}

^{Employees: 5}

^{Net result: 108,250}

^{Share value: 1}

^{Auditor: RAMA
& CO}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started: 18/07/1986}

PRINCIPAL(S)

^{SHETH RAJESH PRAVINCHANDRA S2647693C
Director}

DIRECTOR(S)

^{SHETH MANISHA RAJESH F9045796U
Director}

^{Appointed on:
26/02/1991}

^{Street: 48 MEYER ROAD}

^#16-50

^{EQUATORIAL
APARTMENTS}

^{Town: SINGAPORE}

^{Postcode: 437872}

^{Country: Singapore}

^{CLIFFORD EMMANUEL GERMAIN S2191478I
Company Secretary}

^{Appointed on:
25/11/1996}

^{Street: 33A SURIN AVENUE}

^{CHARLTON
COURT}

^{Town: SINGAPORE}

^{Postcode: 535617}

^{Country: Singapore}

^{SHETH RAJESH PRAVINCHANDRA S2647693C
Director}

^{Appointed on:
19/07/1986}

^{Street: 75 MEYER ROAD}

^#21-01

^HAWAII
TOWER

^{Town: SINGAPORE}

^{Postcode: 437901}

^{Country: Singapore}

ACTIVITY(IES)

^{DIAMONDS - WHSLE}^Code:6450

^{JEWELLERS - MFRS}^Code:12260

^{BASED ON ACRA'S RECORD AS AT 04/05/2006}

^{1) WHOLESALE OF PERSONAL EFFECTS; WHOLES PERSONAL EFFECTS}

^{2) MANUFACTURE OF COSTUME JEWELLERY}

CHARGES

^{Date: 21/06/2003}

^{Comments: CHARGE NO : C200302910}

^{SECURED : 0.00
AND ALL MONIES OWING}

^{CHARGEE : BNP
PARIBAS}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{BNP PARIBAS}

SHAREHOLDERS(S)

^{SHETH MANISHA RAJESH}^{500,000 Private Person}

^{Street : 48 MEYER ROAD}

^#16-50

^{EQUATORIAL
APARTMENTS}

^{Town: SINGAPORE}

^{Postcode: 437872}

^{Country: Singapore}

^{SHETH RAJESH PRAVINCHANDRA}^{500,000 Private Person}

^{Street: 75 MEYER ROAD}

^#21-01

^HAWAII
TOWER

^{Town: SINGAPORE}

^{Postcode: 437901}

^{Country: Singapore}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: DOWNWARD}

^{Financial Situation: AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Audit Qualification: "MILD" UNCERTAINTIES
"MILD" UNCERTAINTIES "MILD"UNCERTAINTIES}

^{Date Account Lodged: 17/01/2006}

^{Balance Sheet Date: 30/06/2005
30/06/2004 30/06/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY
COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 3,462 1,588 4,283}

^{Investments 56,500 56,500
46,500}

^{Total Fixed Assets:}^{59,962 58,088 50,783}

^{Inventories: 13,334,849 14,806,740
12,121,440}

^{Receivables: 6,249,835 4,744,939
3,910,512}

^{Cash, Banks, Securities: 4,044,721
4,740,101 6,681,272}

^{Other current assets: 245,646
218,234 262,371}

^{Total Current Assets:}^{23,875,051 24,510,014
22,975,595}

^{TOTAL ASSETS: 23,935,013 24,568,102
23,026,378}

^{--- LIABILITIES}

^{Equity capital: 1,000,000 1,000,000
1,000,000}

^{Profit & loss
Account: 242,025 133,775 20,707}

^{Total Equity:}^{1,242,025 1,133,775 1,020,707}

^{Trade Creditors: 9,947,360 11,167,766
7,022,860}

^{Other Short term Liab.: 12,620,575
12,162,861 14,982,811}

^{Prepay. & Def. charges: 125,053 103,700 -}

^{Total short term Liab.:}^{22,692,988 23,434,327
22,005,671}

^{TOTAL LIABILITIES: 22,692,988
23,434,327 22,005,671}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 26,104,711 24,617,949
21,524,035}

^{Gross Profit: 594,262 592,738 435,640}

^{Result of ordinary operations 108,250 113,068 -}

^{NET RESULT BEFORE TAX: - -
-262,247}

^{Tax: - -
2,428}

^{Net income/loss year: 108,250
113,068 -264,675}

^{Depreciation: 3,045 2,695
17,822}

^{Directors Emoluments: 208,680
188,680 185,260}

^{Wages and Salaries: 137,552 124,434
152,704}

^{Financial Income: 50,873 29,316
57,408}

RATIOS

^{30/06/2005 30/06/2004
30/06/2003}

^{Turnover per employee: 5,220,942.20
4,923,589.80 4,304,807.00}

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

^{Stock / Turnover(%): 0.51 0.60
0.56}

^{Net Margin(%): 0.41
0.46 -1.23}

^{Return on Equity(%): 8.72 9.97
-25.93}

^{Return on Assets(%): 0.45 0.46
-1.15}

^{Net Working capital: 1,182,063.00
1,075,687.00 969,924.00}

^{Cash Ratio: 0.18 0.20
0.30}

^{Quick Ratio: 0.45 0.40
0.48}

^{Current ratio: 1.05
1.05 1.04}

^{Receivables Turnover: 86.19 69.39
65.41}

^{Leverage Ratio: 18.27 20.67
21.56}

^{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}

^{Inventory Turnover : (360*Inventories)/Net sales}

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

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

FINANCIAL COMMENTS

^{AUDITORS' REPORT:}

^{AS STATED IN THE NOTES TO THE FINANCIAL STATEMENTS, INVENTORIES
OF} ^{S$13,334,849
ARE STATED IN THE FINANCIAL STATEMENTS BASED ON} ^{DIRECTOR'S ESTIMATE OF THE LOWER OF
COST AND NET REALISABLE VALUE.} ^{OWING TO THE NATURE OF THE COMPANY'S INVENTORIES, WE ARE UNABLE
TO} ^{ASCERTAIN
THE VALUATION OF THE INVENTORIES AS STATED IN THE FINANCIAL}

^{STATEMENTS AS AT 30 JUNE 2005.}

^{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 9.55%
FROM S$1,133,775 IN FY 2004 TO S$1,242,025 IN FY 2005.} ^{THIS WAS DUE TO AN INCREASE IN
ACCUMULATED PROFITS AMOUNT BY} ^{80.92% FROM S$133,775 IN FY 2004 TO S$242,025 IN FY 2005.}

^LEVERAGE:

^{IN THE SHORT-TERM, 55.61% (2004: 51.90%) OF TOTAL SHORT-TERM} ^{LIABILITIES CAME FROM OTHER
SHORT-TERM LIABILITIES} ^{(2005:
S$12,620,575, 2004: S$12,162,861).}

^{OTHER SHORT-TERM LIABILITIES SHOWED AN INCREASE BY 3.76%.} ^{THE LATTER COMPRISED OF:}

^{* OTHER PAYABLES- RELATED PARTY}

^{(2005: S$2,316,687, 2004: S$2,316,687)}

^{* OTHER PAYABLES - DIRECTORS}

^{(2005: S$10,303,888, 2004: S$9,846,174)}

^{THE TRADE CREDITORS ACCOUNT WHICH AMOUNTED TO S$9,947,360} ^{(2004: S$11,167,766) IN FY 2005
EXPERIENCED A 10.93% DECREASE.}

^{ADDITIONALLY, THE SUBJECT DID NOT HAVE ANY LONG-TERM LIABILTIES
IN} ^{BOTH FY
2005 AND FY 2004.} ^{IN
ALL THE LEVERAGE RATIO FELL FROM 20.67 TIMES IN FY 2004 TO 18.27}

^{TIMES IN FY 2005.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY WAS SUFFICIENT AND HAD} ^{IMPROVED AS SEEN FROM THE 9.89% RISE
IN NET WORKING CAPITAL} ^{(2005:
S$1,182,063, 2004: S$1,075,687).}

^{HOWEVER, CURRENT RATIO STAYED THE SAME AT 1.05 TIMES IN FY 2004
AND} ^{FY 2005.
HOWEVER, QUICK RATIO ROSE TO 0.45 TIMES IN FY 2005 FROM} ^{0.40 TIMES IN FY 2004.}

^{THERE WAS A CHANGE IN CASH, BANKS AND SECURITIES BY} ^{14.67% IN FY 2005 (2005: S$4,044,721,
2004: S$4,740,101).} ^{THIS
MIGHT BE DUE TO REPAYMENTS OF LIABILITIES MADE DURING THE} ^{FINANCIAL YEAR UNDER REVIEW. THE
BREAKDOWN OF CASH, BANK AND SECURITIES WERE AS FOLLOWS:}

^{* CASH AND BANK BALANCES}

^{(2005: S$1,333,099, 2004: S$2,573,042)}

^{* FIXED DEPOSITS}

^{(2005: S$2,711,622, 2004: S$2,167,059)}

^{PROFITABILITY:}

^{REVENUE ROSE BY 6.04% IN FY 2005 (2005: S$26,104,711,} ^{2004: S$24,617,949). HOWEVER, NET
INCOME DECREASED BY 4.26% IN} ^{FY 2005 (2005: S$108,250, 2004: S$113,068). THIS WAS MAINLY DUE
TO} ^{AN INCREASE
OF COSTS OF GOODS SOLD BY 6.18% IN FY 2005} ^{(2005: S$25,510,449, 2004: S$24,025,211). AS RESULT, GROSS
MARGIN} ^{DROPPED TO
2.28% (2004: 2.41%) IN FY 2005. SIMILARLY, NET MARGIN FELL} ^{TO 0.41% (2004: 0.46%) IN FY 2005.}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND
EARNINGS} ^{CAN BE
IMPROVED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN} ^{ADDITION, THE SUBJECT DID NOT HAVE
ANY INTEREST-BEARING DEBT TO} ^{FINANCE IN FY 2005 AS WELL AS IN FY 2004.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{BANKING FACILITIES:}

^{BANKING FACILITIES ARE SECURED BY:}

^{1) LIEN ON FIXED DEPOSITS OF THE COMPANY AMOUNTING TO S$636,098}

^{(2004: S$2,167,059);}

^{2) FIXED DEPOSITS OF A THIRD PARTY AMOUNTING TO S$500,000}

^{(2004: S$500,000); AND}

^{3) JOINT AND SEVERAL PERSONAL GUARANTEE OF THE DIRECTORS OF THE}

^COMPANY.

^{CONTINGENT LIABILITIES:}

^{AS AT 30 JUNE 2005, THE COMPANY HAS THE CONTINGENT LIABILITIES} ^{RELATING TO THE DEBTORS BY GUARANTEES
AND SHIPPING GUARANTEES} ^{AMOUNTING
TO S$255,115 (EQUIVALENT TO USD 151,242 (2004: S$246,276),} ^{EQUIVALENT TO USD 143,176)
RESPECTIVELY.}

^{LIMITED EXEMPT PRIVATE COMPANY:}

^{WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT OWNED BY ANY
CORPORATE} ^{BODY AND
THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY} ^{IS KNOWN AS AN EXEMPT PRIVATE
COMPANY.} ^{AN EXEMPT
PRIVATE COMPANY ENJOYS A GREATER AMOUNT OF PRIVACY THAN A} ^{PRIVATE COMPANY. IT IS NOT REQUIRED
TO FILE ACCOUNTS WITH THE} ^{REGISTRAR
IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS} ^{DIRECTORS, SECRETARY AND AUDITOR
CONFIRMING THE FOLLOWING POINTS:}

^{1. THE COMPANY IS AN EXEMPT PRIVATE COMPANY.}

^{2. THE AUDITED ACCOUNTS HAVE BEEN TABLED BEFORE THE SHAREHOLDERS}

^{AT THE ANNUAL GENERAL MEETING.}

^{3. THE COMPANY IS ABLE TO MEET ITS LIABILITIES.}

^{THERE IS THEREFORE NO DISCLOSURE TO THE PUBLIC OF THE ACCOUNTS} ^{OF THE COMPANY ALTHOUGH THE ACCOUNTS
STILL HAVE TO BE AUDITED} ^{EVERY
YEAR AND APPROVED AT AN ANNUAL GENERAL MEETING OF THE} ^COMPANY.

^{A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE GOVERNMENT MAY} ^{BECOME AN EXEMPT PRIVATE COMPANY IF
THE MINISTER FOR FINANCE, IN THE} ^{NATIONAL INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE
NOTIFICATION.}

^{EXEMPT FROM AUDIT}

^{AN EXEMPT PRIVATE COMPANY IS EXEMPT
FROM AUDIT REQUIREMENTS IF THE} ^{STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND
31 MAY} ^{2004 AND
ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED $2.5} ^{MILLION. FOR FINANCIAL YEARS STARTING
1 JUNE 2004, THE AMOUNT OF THE} ^{TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE
STILL} ^{REQUIRED TO
MAINTAIN PROPER ACCOUNTING.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{18/07/1986 AS A LIMITED EXEMPT
PRIVATE COMPANY AND IS TRADING UNDER} ^{ITS PRESENT NAMESTYLE OF "HOUSE OF GEMS PTE LTD".}

^{AS AT 04/05/2006, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF} ^{1,000,000 SHARES OF A VALUE OF
S$1,000,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF PERSONAL EFFECTS; WHOLES PERSONAL EFFECTS}

^{2) MANUFACTURE OF COSTUME JEWELLERY}

^{FROM THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES
OF THE} ^{COMPANY WAS
TO DEAL IN ALL KINDS OF JEWELLERIES, DIAMONDS, GEMS AND} ^{PRECIOUS STONES.}

^{FROM THE RESEARCH DONE, SUBJECT IS LISTED ON THE LOCAL
DIRECTORIES} ^{UNDER THE
CATEGORY OF "DIAMONDS".}

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

^{* WORLD FEDERATION OF DIAMOND BOURSES}

^{* SINGAPORE JEWELLERS ASSOCIATION}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 08/05/2006, THE FOLLOWING} ^{INFORMATION WAS OBTAINED:}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* WHOLESALE TRADING OF JEWELLERIES (EG DIAMONDS)}

^{* IMPORT AND EXPORT OF VALUABLE STONES}

^{NUMBER OF EMPLOYEES:}

^{* 5}

^{NO OTHER TRADE INFORMATION WAS REVEALED BY THE SUBJECT'S
PERSONNEL.}

^{NUMBER OF EMPLOYEES; INCLUDING DIRECTORS (30 JUNE):}

^{* COMPANY - 2005: 5 (2004: 6, 2003: 6, 2002: 6)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{545 ORCHARD ROAD}

^#08-06

^{FAR EAST SHOPPING CENTRE}

^{SINGAPORE 238882}

^{DATE OF CHANGE OF ADDRESS: 09/04/1999}

^WEBSITE:

^NIL

^EMAIL:

^{hog@pacific.net.sg}

MANAGEMENT

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

^{1) SHETH MANISHA RAJESH, AN INDIAN}

^{- BASED IN SINGAPORE}

^{2) SHETH RAJESH PRAVINCHANDRA, A SINGAPORE PERMANENT RESIDENT}

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

SINGAPORE COUNTRY RATING 2006

INVESTMENT GRADE

IN SINGAPORE, THE POLITICAL SITUATION APPEARS TO BE VERY STABLE.

ECONOMIC GROWTH IS BECOMING MORE MODERATE AS INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND FOR ELECTRONIC PRODUCTS.

ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE'S STRONG FINANCIAL CONDITION.

AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITS POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO

ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR'S SHARE HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND BIOTECHNOLOGIES.

ASSETS

· ONE OF THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR ROLE IN ITS PERFORMANCE.

· ONE OF ASIA'S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS TERMS.

· WORKFORCE'S EDUCATION AND SKILL LEVEL IS VERY HIGH.

· A MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING COMPANY, TEMASEK.

· THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.

· GREAT POLITICAL STABILITY.

WEAKNESSES

· ECONOMY REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.

· MUST ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER OTHER ASIAN ECONOMIES

· REFORMS ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM MODERNIZATION.

· AGING POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

WITH THE BOOST FROM THE STRONG GROWTH PERFORMANCE OF NON-OIL RE-EXPORTS AND RETAIL SALES, THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY A HEALTHY 8.0% IN 3Q2005, EASING SLIGHTLY FROM THE 8.7% GROWTH REGISTERED IN 2Q2005.

WHOLESALE TRADE

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE INDEX ROSE BY 20.5% OVER THE SAME PERIOD A YEAR AGO. EXCLUDING PETROLEUM, THE INDEX ROSE BY 8.9%.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE SLIGHTLY BY 1.9% IN 3Q2005 OVER 3Q2004. EXCLUDING PETROLEUM, IT WAS 3.6% HIGHER THAN A YEAR AGO.

ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A RISE OF 10.7% IN 3Q2005.

EXCLUDING PETROLEUM, THE INDEX ROSE MODERATELY BY 4.1%.

FOREIGN WHOLESALE TRADE INDEX

AS COMPARED TO 3Q2004, THE OVERALL FOREIGN WHOLESALE TRADE FOR 3Q2005 ROSE BY 22%. EXCLUDING PETROLUEM, THE INDEX ROSE BY 10.2%.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 7.6% IN 3Q2005 OVER 3Q2004. EXCLUDING PETROLEUM, IT WAS UP BY 10.8%.

IN COMPARISON TO 2Q2005, THE OVERALL INDEX FOR 3Q2005 REGISTERED A RISE OF 9.9%.

EXCLUDING PETROLEUM, THE GROWTH WAS LOWER AT 5.7%.

AHEAD

AN OVERALL NET BALANCE OF 22% OF FIRMS IN THE SERVICES SECTOR IS OPTIMISTIC ABOUT THE BUSINESS OUTLOOK FOR THE NEXT 3 MOTNHS ENDING MARCH 2006. THE MAGNITUDE IS SLIGHTLY LOWER COMPARED TO THAT REGISTERED IN THE PERIOD OF JULY-DECEMBER 2005 (26%), AND ALSO LOWER THAN THE 30% NET BALANCE RECORDED FOR OCTOBER 2004 – MARCH 2005.

AN OVERALL NET BALANCE OF 8% OF WHOLESALERS PREDICTS POSITIVE BUSINESS CONDITIONS FOR THE COMING MONTHS.

RETAILERS ALSO EXPRESS UPBEAT BUSINESS SENTIMENTS FOR THE COMING MONTHS, WITH A POSITIVE NET BALANCE OF 38%, ESPECIALLY DEPARTMENT STORES AND RETAILERS OF WEARING APPAREL AND FURNITURE & FURNISHINGS FORESEE BETTER BUSINESS OUTLOOK FROM THE YEAR-END FESTIVE SEASON.

EXTRACTED FROM : MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

BLOOMBERG

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/normal.	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

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