MIRA INFORM REPORT

Report Date :

9^th May 2006

IDENTIFICATION DETAILS

Name :	NEELAM INTERNATIONAL PTE. LTD.
Registered Office :	^10 Jalan Besar #10-10, Sim Lim Tower ^Singapore, 208787
Date of Incorporation :	^19/08/2003
Com. Reg. No.:	^200308049H
Legal Form :	^Pte Ltd
Line of Business :	General importers and exporters and general trading.

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

NEELAM INTERNATIONAL PTE. LTD.

Line Of Business 

GENERAL IMPORTERS AND EXPORTERS AND GENERAL TRADING.

Parent Company

-

Financial Elements

FY 2004

COMPANY

Sales : US$6,333,674

Networth : US$231,941

Paid-Up Capital : US$182,927

Net result : US$49,014

Net Margin(%) : 0.77

Return on Equity(%): 21.13

Leverage Ratio : 2.21

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

^{Subject Company: NEELAM INTERNATIONAL PTE. LTD.}

^{Former Name: -}

^{Business Address: 10 JALAN BESAR}

^#10-10

^{SIM LIM TOWER}

^{Town: SINGAPORE}

^{Postcode: 208787}

^{County: -}

^{Country: Singapore}

^{Telephone: 9788 3110}

^{Fax: 9714 4701}

^{ROC Number: 200308049H}

^{Reg. Town: -}

SUMMARY

^{All amounts in this report are in: USD unless otherwise stated}

^{Legal Form: Pte Ltd}

^{Date Inc.: 19/08/2003}

^{Previous Legal Form: -}

^{Summary year: 31/12/2004}

^{Sales: 6,333,674}

^{Networth: 231,941}

^{Capital: 609,756}

^{Paid-Up Capital: 182,927}

^{Employees: NOT AVAILABLE}

^{Net result: 49,014}

^{Share value: 1 (SGD)}

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

^{ISSUED ORDINARY : SGD 300,000}

^{PAID-UP ORDINARY: SGD 300,000}

^{AUDITOR: MGI N RAJAN ASSOCIATES}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 19/08/2003}

PRINCIPAL(S)

^{PATEL CHETANKUMAR DHIRUBHAI S1809066Z Director}

DIRECTOR(S)

^{PATEL CHETANKUMAR DHIRUBHAI S1809066Z Director}

^{Appointed on: 19/08/2003}

^{Street: 10F BEDOK SOUTH AVENUE 2}

^{` #11-542}

^{Town: SINGAPORE}

^{Postcode: 465010}

^{Country: Singapore}

^{SHARMILA CHANDRAKANT PATEL S7271696E Director}

^{Appointed on: 19/08/2003}

^{Street: 10F BEDOK SOUTH AVENUE 2}

^#11-542

^{Town: SINGAPORE}

^{Postcode: 465010}

^{Country: Singapore}

^{VENKATARAMAIYER SIVARAMAKRISHNAN S0033476F Company Secretary}

^{Appointed on: 08/06/2005}

^{Street: 666 YISHUN AVENUE 4}

^#05-159

^{Town: SINGAPORE}

^{Postcode: 760666}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{R SHANMUGARATNAM S1775936A}

ACTIVITY(IES)

^{COMMISSION MERCHANTS Code: 4990}

^{CHEMICALS Code: 3970}

^{PLASTIC PRODUCTS Code: 16940}

^{TIMBER - WHSLE Code: 21690}

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

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS);}

^{COMMISSION AND INDENTING AGENTS}

CHARGES

^{Date: 25/04/2005}

^{Comments: CHARGE NO: C200502430}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: INDIAN BANK}

^{Date: 08/11/2004}

^{Comments: CHARGE NO: C200405586}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: INDIAN BANK}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{INDIAN BANK}

SHAREHOLDERS(S)

^{PATEL CHETANKUMAR DHIRUBHAI 150,000 Private Person}

^{Street: 10F BEDOK SOUTH AVENUE 2}

^#11-542

^{Town: SINGAPORE}

^{Postcode: 465010}

^{Country: Singapore}

^{SHARMILA CHANDRAKANT PATEL 150,000 Private Person}

^{Street: 10F BEDOK SOUTH AVENUE 2}

^#11-542

^{Town: SINGAPORE}

^{Postcode: 465010}

^{Country: Singapore}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: UNKNOWN}

^{Financial Situation: AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

^{All amounts in this report are in: USD unless otherwise stated}

^{Audit Qualification: UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 09/06/2005}

^{Balance Sheet Date: 31/12/2004}

^{Number of weeks: 71}

^{Consolidation Code: COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 1,524}

^{Total Fixed Assets: 1,524}

^{Inventories: 253,620}

^{Receivables: 190,794}

^{Cash, Banks, Securities: 291,295}

^{Other current assets: 7,112}

^{Total Current Assets: 742,821}

^{TOTAL ASSETS: 744,345}

^{--- LIABILITIES}

^{Equity capital: 182,927}

^{Profit & loss Account: 49,014}

^{Total Equity: 231,941}

^{Trade Creditors: 40,413}

^{Advanced payments: 19,960}

^{Due to Bank: 359,068}

^{Provisions: 5,730}

^{Prepay. & Def. charges: 3,933}

^{Other Short term Liab.: 83,300}

^{Total short term Liab.: 512,404}

^{TOTAL LIABILITIES: 512,404}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 6,333,674}

^{Gross Profit: 266,139}

^{Result of ordinary operations 131,770}

^{NET RESULT BEFORE TAX: 54,744}

^{Tax: 5,730}

^{Net income/loss year: 49,014}

^{Interest Paid: 15,547}

^{Depreciation: 3,289}

^{Directors Emoluments: 76,220}

RATIOS

^31/12/2004

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

^{Stock / Turnover(%): 0.04}

^{Net Margin(%): 0.77}

^{Return on Equity(%): 21.13}

^{Return on Assets(%): 6.58}

^{Net Working capital: 230,417.00}

^{Cash Ratio: 0.57}

^{Quick Ratio: 0.94}

^{Current ratio: 1.45}

^{Receivables Turnover: 10.84}

^{Leverage Ratio: 2.21}

^{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

THERE ARE NO COMPARATIVE FIGURES AVAILABLE AS THIS IS THE FIRST SET OF ACCOUNTS FOR THE COMPANY.

THE PROFIT AND LOSS STATEMENT COVERS THE PERIOD FROM 19/08/2003 (DATE OF INCORPORATION) TO 31/12/2004.

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 AT US$231,941 IN FY 2004 WHICH WAS DUE TO ACCUMULATED PROFIT/NET PROFIT OF US$49,014 IN FY 2004.

LEVERAGE:

IN THE SHORT TERM, SUBJECT WAS LARGELY FINANCED BY AMOUNT DUE TO BANK WHICH MADE UP 70.08% OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$359,068. THIS REFERRED TO TRUST RECEIPTS.

OTHER SHORT-TERM LIABILITIES OF US$83,300 COMPRISED:

-DUE TO DIRECTOS – 2004: US$38,960

-OTHER PAYABLES – 2004: US$44,340

LEVERAGE RATIO STOOD AT 2.21 TIMES IN FY 2004.

LIQUIDITY:

IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE. QUICK RATIO STOOD AT 0.94 TIMES AND CURRENT RATIO AT 1.45 TIMES.

LIKEWISE, NET WORKING CAPITAL WAS POSITIVE AT US$230,417 IN FY 2004.

ALSO, CASH AND CASH EQUIVALENTS OF US$291,295 COMPRISED THE FOLLOWING:

-CASH AT BANK - 2004: US$107,306

-FIXED DEPOSITS - 2004: US$183,989

PROFITABILITY:

REVENUE OF US$6,333,674 WAS GENERATED IN FY 2004 AND HENCE NET PROFIT OF US$49,014 IN FY 2004. GROSS MARGIN STOOD AT 4.20% AND NET MARGIN AT 0.77%.

DEBT SERVICING:

DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE IMPROVED OR MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. ALSO, INTEREST COVERAGE RATIO WAS SUFFICIENT AT 4.52 TIMES.

NOTES TO THE FINANCIAL STATEMENTS:

TRUST RECEIPTS:

THESE ARE SECURED BY THE FIXED DEPOSITS UNDER LIEN TO THE BANKS, AND PERSONAL GUARANTEE BY DIRECTORS.

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 19/08/2003 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "NEELAM INTERNATIONAL PTE. LTD.".}

^{AS AT 04/05/2006, THE COMPANY HAS A ISSUED AND PAID-UP CAPITAL OF 300,000 SHARES OF A VALUE OF S$300,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS); COMMISSION AND INDENTING AGENTS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TO CARRY ON THE BUSINESS OF GENERAL IMPORTERS AND EXPORTERS AND GENERAL TRADING.}

^{FROM THE RESEARCH DONE, SUBJECT IS A REPRESENTING AGENT/TRADING OF INDUSTRIAL CHEMICALS/SOLVENTS, PLASTIC RESIN/RECYCLED PLASTIC AND RUBBER - SBR/PBR. SUBJECT IMPORTS, EXPORTS, STOCKS AND DISTRIBUTES CHEMICALS AND PVC RESINS TO END USERS. IT REPRESENTS MANUFACTURERS FROM ASIA AS WELL EUROPE.}

^PRODUCTS:

^{*ZINC SULPHATE HEPTA/MONO}

^{*CITRIC ACID BP 93 MONO}

^{*DI ETHYLENE GLYCOL/MONO ETHYLENE GLYCOL}

^{*PVC RESINS}

^{*POLYPROPYLENE RESIN}

^{*POLYETHYLENE RESIN}

^{MAIN MARKET:}

^{*SOUTHEAST ASIA}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 09/05/2006, IT WAS REVEALED THAT SUBJECT IS IN THE TRADING OF CHEMICALS, PLASTICS, TEAKWOOD, TIMBER, AND SCRAP METAL. SUBJECT IMPORTS FROM AND EXPORTS MAINLY TO SOUTH EAST ASIA REGION. SUBJECT EMPLOYS 4 PERSONS IN THE BUSINESS.}

^{TERMS OF PAYMENT:}

^{*CUSTOMERS: L/C AT SIGHT}

^{*SUPPLIERS: DP}

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

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{*2004: NOT AVAILABLE}

^{REGISTERED AND BUSINESS ADDRESS:}

^{10 JALAN BESAR}

^#10-10

^{SIM LIM TOWER}

^{SINGAPORE 208787}

^{DATE OF CHANGE OF ADDRESS: 08/06/2005}

^{YOUR PROVIDED ADDRESS:}

^{111 NORTH BRIDGE ROAD}

^#08-08

^{PENINSULA PLAZA}

^{SINGAPORE 179098}

^{--FORMER BUSINESS ADDRESS. HOWEVER, PERSONNEL STILL MAINTAINS THE PREMISE AS}

^{MAILING ADDRESS AS CONFIRMED VIA TELE-INTERVIEW}

^WEBSITE:

^NIL

^EMAIL:

^{chemplas@singnet.com.sg}

MANAGEMENT

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

^{1) PATEL CHETANKUMAR DHIRUBHAI, A SINGAPOREAN}

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

^{2) SHARMILA CHANDRAKANT PATEL, A SINGAPOREAN}

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

Singapore’s 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%.

THE RISE WAS ATTRIBUTED TO SHIP CHANDLERS & BUNKERING AND WHOLESALE TRADE OF PETROLEUM & PETROLEUM PRODUCTS WITH 40% INCREASE. THE HIGHER SALES WERE MAINLY DUE TO OIL PRICE INCREASES.

DOMESTIC SALES OF CHEMICALS & CHEMICAL PRODUCTS ROSE BY 18.1%, CONTRIBUTED MAINLY BY THE WHOLESALING OF PETROCHEMICAL PRODUCTS. SALES OF TELECOMMUNICATIONS & COMPUTERS, INDUSTRIAL & CONSTRUCTION MACHINERY, TIMBER, PAINTS AND CONSTRUCTION MATERIALS ALSO POSTED RISES IN 3Q2005.

CONVERSELY, DOMESTIC SALES OF HOUSEHOLD EQUIPMENT & FURNITURE FELL BY 11.6% IN 3Q2005, COMPARED TO A YEAR AGO.

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%.

THERE WERE VARIOUS SECTORS WHICH CONTRIBUTED TO THE OVERALL IMPROVEMENT, INCLUDING SHIP CHANDLERS & BUNKERING, WHOLESALING OF PETROLEUM & PETROLEUM PRODUCTS, TELECOMMUNICATIONS & COMPUTERS AND CHEMICALS & CHEMICAL PRODUCTS.

IN CONTRAST, FOOD, BEVERAGES & TOBACCO AND GENERAL WHOLESALE TRADE FELL SIGNIFICANTLY BY 17.7% AND 15.1% RESPECTIVELY.

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%.

SIMILAR TO THE DOMESTIC SALES, OVERSEAS SALES OF SHIP CHANDLERS & BUNKERING AND WHOLESALERS OF PETROLEUM & PETROLEUM PRODUCTS ROSE SUBSTANTIALLY BY 50.3% AND 38.6% OVER 3Q2004, MAINLY DUE TO THE HIGHER OIL PRICES.

WHOLESALING OF ELECTRONIC COMPONENTS, INDUSTRIAL & CONSTRUCTION MACHINERY AND TELECOMMUNICATIONS & COMPUTERS ALSO REPORTED STRONG GROWTH IN OVERSEAS SALES.

FOLLOWING EIGHT SUCCESSIVE QUARTERS OF DOUBLE-DIGIT GROWTHS, SALES OF CHEMICALS & CHEMICAL PRODUCTS INCREASED SLIGHTLY BY 2.5% IN 3Q2005.

IN CONTRAST, FOREIGN SALES OF HOUSEHOLD EQUIPMENT & FURNITURE FELL FURTHER IN 3Q2005 BY 13.7%. IT WAS LED BY THE WHOLESALING OF TV AND SOUND REPRODUCING EQUIPMENT.

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%.

STRONG GROWTH WERE REPORTED IN WHOLESALE SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS & BUNKERING AND PETROLEUM & PETROLEUM PRODUCTS.

RETAIL TRADE

RETAIL SALES CHALKED UP AN IMPRESSIVE 9.9% GROWTH IN 3Q2005, ALBEIT A MODERATION FROM THE SECOND QUARTER’S GROWTH RATE OF 12%. THE SALES OF MOTOR VEHICLES EASED FROM 2Q2005 RISE OF 15%, BUT STILL GREW BY 12% IN THE LAST QUARTER. EXCLUDING MOTOR VEHICLES, RETAIL SALES GREW BY 7.9% IN THIRD QUARTER, BETTER THAN THE 7.5% RECORDED IN THE SECOND QUARTER.

ON A YEAR-ON-YEAR BASIS, MOST RETAIL SEGMENTS REGISTERED BETTER SALES. THE SEGMENTS WERE TELECOMMUNICATIONS AND COMPUTERS (23%), WEARING APPAREL AND FOOTWEAR (12%), FURNITURE AND HOUSEHOLD EQUIPMENT (11%), DEPARTMENT STORES (11%), FOOD AND BEVERAGES (9.2%), MEDICAL GOODS AND TOILETRIES (7.4%), RECREATIONAL GOODS (6.4%), OPTICAL GOODS AND BOOKS (5.9%), PROVISION AND SUNDRY SHOPS (5.8%), WATCHES AND JEWELLERY (5.3%), PETROL SERVICE STATIONS (1.1%) AND SUPERMARKETS (0.4%).

NOVEMBER RETAIL SALES RISE 2.4%

SINGAPORE’S RETAIL SALES ROSE IN NOVEMBER AT THE SLOWEST PACE IN NINE MONTHS AS TOURISM GROWTH EASED, CAR SALES FELL AND CONSUMERS CUT SPENDING AFTER STOCKING UP FOR RELIGIOUS FESTIVALS.

RETAIL SALES INDEX ROSE 2.4% IN NOVEMBER 2005 FROM NOVEMBER 2004 AFTER A PREVIOUS GAIN OF 10.2%. THAT WAS LOWER THAN THE MOST PESSIMISTIC ESTIMATE IN A BLOOMBERG SURVEY OF 13 ECONOMISTS, WHERE THE MEDIAN FORECAST WAS AN 11% RISE. EXCLUDING VEHICLES, RETAIL SALES GREW BY 5.2% FROM THE SAME MONTH A YEAR EARLIER.

ON A SEASONALLY ADJUSTED BASIS, NOVEMBER RETAIL SALES FELL 8.7% FROM THE PREVIOUS MONTH. EXCLUDING CARS, THE INDEX FELL BY 6.3%.

DEPARTMENT STORE SALES ROSE 4.8% LAST NOVEMBER AS COMPARED TO NOVEMBER 2004 AFTER A 16% GAIN IN THE PREVIOUS MONTH, THE FIGURES SHOWED. NOVEMBER VEHICLE SALES, WHICH MAKE UP MORE THAN A QUARTER OF THE INDEX, DECLINED SLIGHTLY BY 0.5% FROM NOVEMBER 2004 FOLLOWING A 8.9% RISE IN THE PREVIOUS MONTH. SALES OF FURNITURE AND HOUSEHOLD EQUIPMENT ROSE BY 0.4% IN NOVEMBER 2005 FROM NOVEMBER 2004, LESS THAN THE 17% RISE IN OCTOBER.

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. THOSE DEALING IN ELECTRONIC COMPONENTS, TELECOMMUNICATIONS EQUIPMENT AND COSMETICS & TOILETRIES ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

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

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