MIRA INFORM REPORT

Report Date :

11^th May 2006

IDENTIFICATION DETAILS

Name :	^{DIASQUA S'PORE PTE. LTD.}

Registered Office :	^{2 Finlayson Green} ^{#14-02, Asia Insurance Building} ^{049247, Singapore}

Date of Incorporation :	^199004439d

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	^{Deal in an extensive range of polished diamonds in many sizes, shapes, colors and qualities}

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

^{DIASQUA S'PORE PTE. LTD.}

Line Of Business

^{DEAL IN AN
EXTENSIVE RANGE OF POLISHED DIAMONDS IN MANY SIZES,}

^{SHAPES,
COLORS AND QUALITIES}

Parent Company

--

Financial Elements

FY 2002

COMPANY

Sales : S$58,931,791

Networth : S$366,406

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

Net result : S$106,174

Net Margin(%) : 0.18

Return on Equity(%) : 28.98

Leverage Ratio : 74.72

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

^{Subject
Company : DIASQUA S'PORE PTE. LTD.}

^{Former Name
: DIASQUA
IMPEX PTE LTD (DATE OF CHAN}

^{Business
Address: 2 FINLAYSON
GREEN}

^#14-02

^{ASIA
INSURANCE BUILDING}

^{Town: SINGAPORE}

^{Postcode: 049247}

^County:

^{Country: Singapore}

^{Telephone: 6224
6256}

^{Fax: 6224 3902}

^{ROC
Number: 199004439D}

^{Reg. Town:}

PREVIOUS IDENTIFICATION

^{DIASQUA
IMPEX PTE LTD
DATE OF CHANGE: 19/11/2004}

SUMMARY

^{Legal
Form: Exempt Pte
Ltd}

^{Date
Inc.: 06/09/1990}

^{Previous
Legal Form:}

^{Summary
year : 30/09/2002}

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

^{Sales: 58,931,791}

^{Networth
: 366,406}

^{Capital: 1,000,000}

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

^{Employees: 5}

^{Net result
: 106,174}

^{Share
value: 1}

^{AUDITOR : MGI
MENON & ASSOCIATES}

REFERENCES

^{Litigation: No}

^{Company
status : TRADING}

^{Started
: 06/09/1990}

PRINCIPAL(S)

^{MEHTA
VIMESH PIYUSH
S6884838E Director}

DIRECTOR(S)

^{NIMESH
PIYUSH MEHTA H339409 Director}

^{Appointed
on : 06/09/1990}

^{Street
: B-10 ADINATH APTS,}

^{193
VELLAR STREET}

^PURASAWAKKOM

^{Town: MADRAS}

^Postcode:

^{Country: India}

^{SWARAN
SINGH
S1157721J Company Secretary}

^{Appointed
on : 09/01/1995}

^{Street
: 402 SIN MING AVENUE}

^#15-319

^{Town: SINGAPORE}

^{Postcode: 570402}

^{Country: Singapore}

^{MEHTA
VIMESH PIYUSH
S6884838E Director}

^{Appointed
on : 26/02/1993}

^{Street
: 3 TANJONG RHU ROAD}

^#12-01

^{THE
WATERSIDE}

^{Town: SINGAPORE}

^{Postcode: 436881}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{NANDLAL
CHAKUBHAI PATEL S2034774J}

^{MANOJ KANJI
MEHTA S2721108I}

ACTIVITY(IES)

^{JEWELLERS -
RETAIL}^Code:12270

^{COMMODITY
BROKERS}^Code:5000

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

^{1.WHOLESALE
OF JEWELLERY}

^{2.COMMODITY
BROKERS & DEALERS}

CHARGES

^{Date: 29/09/2004}

^{Comments
: CHARGE
NO : C200404824}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE
: INDIAN BANK}

^{Date: 12/05/2005}

^{Comments
: CHARGE
NO : C200502746}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE
: UNITED OVERSEAS BANK LTD}

^{Date: 24/06/2005}

^{Comments
: CHARGE
NO : C200503585}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE
: UNITED OVERSEAS BANK LTD}

^{Date: 14/12/2005}

^{Comments
: CHARGE
NO : C200507691}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : UNITED OVERSEAS BANK LTD}

^{Date: 25/04/2001}

^{Comments
: CHARGE
NO : 200101931}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : BNP PARIBAS}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{BNP PARIBAS}

^{INDIAN BANK}

^{UNITED
OVERSEAS BANK LIMITED}

SHAREHOLDERS(S)

^{NIMESH
PIYUSH MEHTA}^{999,998 Private Person}

^{Street
: B-10 ADINATH APTS,}

^{193
VELLAR STREET}

^PURASAWAKKOM

^{Town: MADRAS}

^Postcode:

^{Country: India}

^{MEHTA
VIMESH PIYUSH}^{2 Private Person}

^{Street
: 3 TANJONG RHU ROAD}

^#12-01

^{THE
WATERSIDE}

^{Town: SINGAPORE}

^{Postcode: 436881}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{NANDLAL
CHAKUBHAI PATEL}^1,000

^{MANOJ KANJI
MEHTA}^1,000

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality: AVERAGE}

^{Liquidity
: UNKNOWN}

^{Payments
: REGULAR}

^{Trend
: LEVEL}

^{Financial
Situation:UNKNOWN}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Audit
Qualification: UNQUALIFIED
(CLEAN) UNQUALIFIED (CLEAN)}

^{Date
Account Lodged: 31/01/2004}

^{Balance
Sheet Date:
30/09/2002
30/09/2001}

^{Number
of weeks:
52 52}

^{Consolidation
Code: COMPANY COMPANY}

^---
ASSETS

^{Tangible
Fixed Assets:
51,251 67,969}

^{Total
Fixed Assets:
51,251 67,969}

^{Inventories: 4,580,000 3,975,081}

^{Receivables: 22,761,870 19,404,306}

^{Cash,Banks,
Securitis: 309,209 289,427}

^{Other
current assets:
43,241 1,019,564}

^{Total
Current Assets:
27,694,320 24,688,378}

^{TOTAL
ASSETS:
27,745,571
24,756,347}

^{---
LIABILITIES}

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

^{Profit
& lost Account: -633,594 -739,768}

^{Total
Equity:
366,406
260,232}

^{Other
long term Liab.: 6,883}

^{Total
L/T Liabilities: 6,883}

^{Trade
Creditors: 26,826,859 24,153,674}

^{Short
term liabilities:
6,883 11,800}

^{Due
to Bank: 54,344}

^{Provisions: 29,360 29,360}

^{Other
Short term Liab.:
516,063
240,054}

^{Total
short term Liab.:
27,379,165
24,489,232}

^{TOTAL
LIABILITIES:
27,379,165
24,496,115}

^{---
PROFIT & LOSS ACCOUNT}

^{Net
Sales
58,931,791
35,274,924}

^{Gross
Profit:
495,836
569,790}

^{Result
of ordinary operations
165,240
307,251}

^{NET
RESULT BEFORE TAX:
106,174
115,086}

^{Net
income/loss year:
106,174
115,086}

^{Interest
Paid:
59,066
192,165}

^{Depreciation: 23,761 23,056}

^{Directors
Emoluments:
138,720
132,000}

RATIOS

^{30/09/2002 30/09/2001}

^{Turnover
per employee: 11786358.20 7054984.80}

^{Fin.
Charges / Turnover(%):0.00 0.01}

^{Stock
/ Turnover(%): 0.08 0.11}

^{Net
Margin(%): 0.18 0.33}

^{Return
on Equity(%): 28.98 44.22}

^{Return
on Assets(%): 0.38 0.46}

^{Net
Working capital: 315155.00 199146.00}

^{Cash
Ratio: 0.01 0.01}

^{Quick
Ratio: 0.84 0.80}

^{Current
ratio: 1.01 1.01}

^{Receivables
Turnover: 139.05 198.03}

^{Leverage
Ratio: 74.72 94.13}

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

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.

THE FINANCIAL STATEMENTS FOR THE YEAR 2002 IS OUTDATED.

HENCE, AN ADVERSE CHECK ON THE DIRECTORS IS CONDUCTED.

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON

06/09/1990 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "DIASQUA IMPEX PTE LTD".

SUBSEQUENTLY, ON 19/11/2004, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "DIASQUA S'PORE 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 & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:

1.WHOLESALE OF JEWELLERY

2.COMMODITY BROKERS & DEALERS

DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF DEALERS IN DIAMONDS.

FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:

BACKGROUND:

THE ROOTS OF THE DIASQUA GROUP DATE BACK TO 1933, WHEN MR. HIMATLAL MEHTA AND MR. RAMNIKLAL MEHTA ESTABLISHED "THE ICD WORKS" IN MADRAS IN 1933, DEALING IN DIAMONDS AND OTHER PRECIOUS STONES. BEING ONE OF THE EARLIEST EXPORTERS FROM INDIA, THEY TRAVELED ALL OVER THE WORLD DURING THE 50'S AND 60'S.

SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:

*DEAL IN AN EXTENSIVE RANGE OF POLISHED DIAMONDS IN MANY SIZES,

SHAPES, COLORS AND QUALITIES

PRODUCT DEALINGS:

*PRODUCT 1 - (1-3 CARATS)

*PRODUCT 2 - WHITE BRILLIANT

*PRODUCT 3 - BROWN BRILLIANT

*PRODUCT 4 - PRINCESS CUTS

*PRODUCT 5 - TAPPERS, BAGUETTES, ETC

*PRODUCT 6 - NATURAL LOW-MEDIUM

*PRODUCT 7 - ONE STOP FOR ALL COLOURS, SHAPES

*COLOURS : WHITE, FROM THE LIGHT TO THE DARKER BROWNS, CAPES AND

*OTHER NATURAL FANCY COLURS (FROM F TO THE Z'S)

*SHAPES : BRILLIANTS, PRINCESS, MARQUISE, PEARS, ROSE-CUTS,

*TAPPERS AND BAUGUETTES, BRIOLETTES,HEARTS, OVALS, ETC.

*SIZES : FROM 0.005CT. (1/200) TO 3.00 CT

*CUTS : INDIA, ISRAEL, THAILAND, CHINA AND RUSSIA.

*CERTIFIED : SIZES BETWEEN 0.29CARATS TO 3.00CARATS FROM RECOGNIZED, INTERNATIONAL GEMOLOGICAL LABORATORIES.

OVERSEAS OFFFICES IN:

*BANGKOK (THAILAND)

*TAIPEI (TAIWAN)

*TOKYO (JAPAN)

*SYDNEY (AUSTRALIA)

*MUMBAI (INDIA)

*DUBAI (UNITED ARAB EMIRATES)

*LONDON (UNITED KINGDOM)

*ANTWERPEN (BELGIUM)

*NEW YORK (UNITED STATES OF AMERICA)

*LOS ANGELES (UNITED STATES OF AMERICA)

FROM THE TELE-INTERVIEW CONDUCTED ON 10/05/2006, THE FOLLOWING WAS

GATHERED:

PURCHASES

*IMPORTS (%): NOT PROVIDED

*TERMS OF IMPORTS : CASH ON DELIVERY

*IMPORT COUNTRIES : BELGIUM, INDIA

MARKETS

*LOCAL (%) : NOT PROVIDED

*TERM SALES : CASH ON DELIVERY

*EXPORT (%) : NOT PROVIDED

*TERMS OF EXPORT : CASH ON DELIVERY

*EXPORT COUNTRIES : INDONESIA, HONGKONG, CHINA, TAIWAN, AUSTRALIA, MALAYSIA

NUMBER OF EMPLOYEES:

*COMPANY - 2006: 5

NO OTHER TRADE INFORMATION IS AVAILABLE ON 10/05/2006.

NUMBER OF EMPLOYEES (30 SEPTEMBER):

*COMPANY - 2002: 4 (2001 : 6)

*GROUP - 2002: - (2001: -)

REGISTERED AND BUSINESS ADDRESS :

2 FINLAYSON GREEN

#14-02

ASIA INSURANCE BUILDING

SINGAPORE 049247

-RENTED PREMISE

-OWNED BY THE ASIA INSURANCE COMPANY LIMITED

-DATE OF CHANGE (ADDRESS) : 14/07/2000

WEBSITE:

^{www.diasqua.com}

EMAIL:

^{singapore@diasqua.com}

MANAGEMENT

THE DIRECTORS AT THE TIME OF THE REPORT ARE:

1) NIMESH PIYUSH MEHTA, AN INDIAN

- BASED IN INDIA.

2) MEHTA VIMESH PIYUSH, A SINGAPOREAN

- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.

ADVERSE ON DIRECTORS

DIRECTOR'S NAME: MEHTA VIMESH PIYUSH

ADVERSE REPORT AGAINST DIRECTOR: NIL

PROPERTY OWNERSHIP: OWNS 1

ANNUAL VALUE: S$21,600

CO-OWNER (S): NIL

*ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.

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.

HOTELIERS PROJECT A POSITIVE OUTLOOK FOR THE MONTHS AHEAD, WITH A POSITIVE NET BALANCE OF 64%, IN ANTICIPATION OF AN INCREASE IN TOURIST ARRIVALS AND OCCUPANCY RATE. SIMILARLY, IN CATERING TRADE, RESTAURANTS AND FOOD CATERERS FORESEE FAVOURABLE BUSINESS CONDITIONS IN THE COMING MONTHS.

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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