MIRA INFORM REPORT

Report Date :

12^th May 2006

IDENTIFICATION DETAILS

Name :	^AMTEL INVESTMENT HOLDINGS PTE LTD
Registered Office :	50 Raffles Place #44-04 Singapore Land Tower, 048623 ^Singapore
Date of Incorporation :	^20/12/2001
Com. Reg. No.:	^200108091W
Legal Form :	^Exempt Pte Ltd
Line of Business :	^Engaged in sourcing and trading of tyres, raw material for tyres and rubber in the far east

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

^{AMTEL INVESTMENT HOLDINGS PTE LTD}

Line Of Business

^{SOURCING AND TRADING OF TYRES, RAW MATERIAL FOR TYRES AND RUBBER IN THE FAR EAST}

Parent Company

--

Financial Elements

FY 2005

COMPANY

Sales : US$113,117,998

Networth : US$3,093,054

Paid-Up Capital : US$1,492,086

Net result : US$1,232,651

Net Margin(%) : 1.09

Return on Equity(%) : 39.85

Leverage Ratio : 13.22

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

^{Subject Company : AMTEL INVESTMENT HOLDINGS PTE LTD}

^{Former Name : -}

^{Business Address: 50 RAFFLES PLACE}

^#44-04

^{SINGAPORE LAND TOWER}

^{Town: SINGAPORE}

^{Postcode: 048623}

^{County: -}

^{Country: Singapore}

^{Telephone: 6323 9345}

^{Fax: 6323 2789}

^{ROC Number: 200108091W}

^{Reg. Town: -}

SUMMARY

^{Legal Form: Exempt Pte Ltd}

^{Date Inc.: 20/12/2001}

^{Previous Legal Form: -}

^{Summary year : 31/03/2005}

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

^{Sales: 113,117,998}

^{Networth : 3,093,054}

^{Capital: -}

^{Paid-Up Capital: 1,492,086}

^{Employees: 15}

^{Net result : 1,232,651}

^{Share value: -}

^{AUDITOR : ERNST & YOUNG (FORMERLY KNOWN AS: ERNST & WHINEEY & ARTHUR YOUNG)}

^{BASED ON ACRA'S RECORD AS AT 08/05/2006 CURRENCY AMOUNT}

^{ISSUED ORDINARY SGD 2,500,000.00}

^{PAID-UP ORDINARY SGD 2,500,000.00}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 20/12/2001}

PRINCIPAL(S)

^{SUDHIR GUPTA S2628481C Director}

DIRECTOR(S)

^{DANIEL GUPTA 62NO120665 Director}

^{Appointed on : 25/06/2003}

^{Street : 45 KUTUZOVSKY PROSPECT}

^{ENTRANCE NO 11}

^{Town: MOSCOW}

^Postcode:

^{Country: Russian Federation}

^{CHENG LIAN SIANG S1519832Z Company Secretary}

^{Appointed on : 02/12/2002}

^{Street : 7 SIN MING WALK}

^#20-17

^{Town: SINGAPORE}

^{Postcode: 575577}

^{Country: Singapore}

^{SUDHIR GUPTA S2628481C Director}

^{Appointed on : 03/01/2002}

^{Street : 38 BELMONT ROAD}

^{Town: SINGAPORE}

^{Postcode: 269875}

^{Country: Singapore}

^{SUMEER MAHAJAN 136097 Director}

^{Appointed on : 03/01/2002}

^{Street : 6 PEACH GARDEN}

^#19-08

^{Town: SINGAPORE}

^{Postcode: 437606}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{DANIEL GOUPTA 50NO000364}

ACTIVITY(IES)

^{INVESTMENT COMPANIES Code:12095}

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD AS AT 08/05/2006}

^{1.OTHER INVESTMENT HOLDING COMPANIES}

^{2.GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

CHARGES

^{Date: 30/03/2006}

^{Comments : CHARGE NO: C200602059}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): KBC BANK N.V.}

^{Date: 06/01/2006}

^{Comments : CHARGE NO: C200600183}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): STANDARD CHARTERED BANK}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE HONGKONG & SHANGHAI BANKING CORPORATION LTD}

^{UNITED OVERSEAS BANK LIMITED}

^{KBC BANK N V}

^{STANDARD CHARTERED BANK}

^{DBS BANK LTD.}

SHAREHOLDERS(S)

^{SUDHIR GUPTA 1,750,000 Private Person}

^{Street : 38 BELMONT ROAD}

^{Town: SINGAPORE}

^{Postcode: 269875}

^{Country: Singapore}

^{SUMEER MAHAJAN 750,000 Private Person}

^{Street : 6 PEACH GARDEN}

^#19-08

^{Town: SINGAPORE}

^{Postcode: 437606}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{DANIEL GUPTA 499,998}

SUBSIDIARY(IES)

^{AMTEL ENTERPRISE SDN BHD}

^{AMTEL INVESTMENT HOLDING LTD}

^{AMTEL INTERNATIONAL TOOLING (SHANGHAI) CO. LTD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity : SUFFICIANT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation: AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 24/10/2005}

^{Balance Sheet Date: 31/03/2005 31/03/2004}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 15,390 23,777}

^{Investments 381,600}

^{Total Fixed Assets: 396,990 23,777}

^{Inventories: 11,062,264 3,429,212}

^{Receivables: 25,830,352 6,351,954}

^{Cash,Banks, Securitis: 4,931,380 755,841}

^{Other current assets: 1,774,042 328,454}

^{Total Current Assets: 43,598,038 10,865,461}

^{TOTAL ASSETS: 43,995,028 10,889,238}

^{--- LIABILITIES}

^{Equity capital: 1,492,086 579,186}

^{Reserves: 1,600,968 368,317}

^{Total Equity: 3,093,054 947,503}

^{Trade Creditors: 40,101,158 9,727,298}

^{Prepay. & Def. charges: 348,463 22,270}

^{Due to Bank: 24,485}

^{Provisions: 241,817 86,600}

^{Other Short term Liab.: 210,536 81,082}

^{Total short term Liab.: 40,901,974 9,941,735}

^{TOTAL LIABILITIES: 40,901,974 9,941,735}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 113,117,998 15,796,401}

^{Gross Profit: 3,647,857 830,138}

^{Result of ordinary operations 2,372,476 564,722}

^{NET RESULT BEFORE TAX: 1,472,651 465,100}

^{Tax : 240,000 86,600}

^{Net income/loss year: 1,232,651 378,500}

^{Interest Paid: 900,213 100,135}

^{Depreciation: 13,639 11,889}

^{Directors Emoluments: 130,621 6,751}

^{Purchases,Sces & Other Goods: 109,470,141 14,966,263}

^{Wages and Salaries: 440,892 53,035}

^{Financial Income: 388 513}

RATIOS

^{31/03/2005 31/03/2004}

^{Turnover per employee: 7541199.87 1053093.40}

^{Net result / Turnover(%): 0.01 0.02}

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

^{Stock / Turnover(%): 0.10 0.22}

^{Net Margin(%): 1.09 2.40}

^{Return on Equity(%): 39.85 39.95}

^{Return on Assets(%): 2.80 3.48}

^{Net Working capital: 2696064.00 923726.00}

^{Cash Ratio: 0.12 0.08}

^{Quick Ratio: 0.75 0.71}

^{Current ratio: 1.07 1.09}

^{Receivables Turnover: 82.21 144.76}

^{Leverage Ratio: 13.22 10.49}

^{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 asset}

^{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

^{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 2.26 TIMES FROM USS$947,503 IN FY 2004 TO US$3,093,054 IN FY 2005. THIS WAS DUE TO HIGHER RESERVES OF US$1,600,968 (2004: US $368,317); A RISE OF 3.35 TIMES FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 98.04% (2004: 97.84%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$40,101,158 (2004: US$9,727,298).}

^{IN ALL, LEVERAGE RATIO ROSE FROM 10.49 TIMES TO 13.22 TIMES AS A}

^{RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL MARGINALLY TO 1.07 TIMES, DOWN FROM 1.09 TIMES AND QUICK RATIO IMPROVED TO 0.75 TIMES FROM 0.71 TIMES IN FY 2004.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY 1.92 TIMES FROM}

^{US$923,726 IN FY 2004 TO US$2,696,064.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 6.16 TIMES FROM US$15,796,401 IN FY 2004 TO US$113,117,998 AND NET PROFIT ROSE BY 2.26 TIMES TO US$1,232,651 (2004: US$378,500). HENCE, NET MARGIN FELL TO 1.09% (2004: 2.80%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING.}

^{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}

^{20/12/2001 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "AMTEL INVESTMENT HOLDINGS PTE LTD".}

^{AS AT 08/05/2006, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF}

^{2,500,000 SHARES OF A VALUE OF S$2,500,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1.OTHER INVESTMENT HOLDING COMPANIES}

^{2.GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF IMPORTERS AND EXPORTERS OF RUBBER, TYRE, TYRE RAW MATERIALS AND RELATED PRODUCTS AND INVESTMENT HOLDINGS.}

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:}

^{NON-CLEARING MEMBER OF SINGAPORE COMMODITY EXCHANGE}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{*SOURCING AND TRADING OF TYRES, RAW MATERIAL FOR TYRES AND RUBBER IN THE FAR EAST}

^{PRODUCTS DEALINGS:}

^{*NATURAL RUBBER}

^{*SYNTHETIC RUBBER}

^{IMPORT COUNTRIES:}

^*RUSSIA

^{TERMS OF PAYMENT:}

^{*TRADE AND OTHER RECEIVABLES: 30-180 DAYS TERM}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 11/05/2006.}

^{NUMBER OF EMPLOYEES (31 MARCH):}

^{*COMPANY - 2005: 15 (2004: 7)}

^{*GROUP - 2005: 23 (2004: -)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{50 RAFFLES PLACE}

^#44-04

^{SINGAPORE LAND TOWER}

^{SINGAPORE 048623}

^{-DATE OF CHANGE OF ADDRESS: 06/10/2003}

^WEBSITE:

^{http://www.amteltyre.com (RUSSIAN)}

^EMAIL:

^-

MANAGEMENT

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

^{1) DANIEL GOUPTA, A RUSSIAN}

^{- BASED IN RUSSIA.}

^{2) SUDHIR GUPTA, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.}

^{3) SUMEER MAHAJAN S/O SH R R MAJAJAN, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{SUMEER MAHAJAN S/O SH R R MAJAJAN}

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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