MIRA INFORM REPORT

Report Date :

17^thMay 2006

IDENTIFICATION DETAILS

Name :	AKBARWOOD ENTERPRISES PTE LTD

Registered Office :	^{63 Robinson Road, #05-09 Afro-Asia Building} ^{068894, Singapore}

Date of Incorporation :	^15/03/1983

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Engaged in the business of import and export of plywood and timber products

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

AKBARWOOD ENTERPRISES PTE LTD

Line Of Business

IMPORT AND EXPORT OF PLYWOOD AND TIMBER PRODUCTS

Parent Company

Financial Elements

FY2004

COMPANY

Sales : S$23,008,381

Networth : S$574,935

Paid-Up Capital : S$200,000

Net result : S$71,268

Net Margin(%) : 0.31%

Return on Equity(%) : 12.40%

Leverage Ratio : 6.06 TIMES

Rating :

Credit Requested : NA

Credit Rating : Singapore $ 300001 to Singapore $ 600000

Credit Opinion : NA

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

^{Subject Company : AKBARWOOD
ENTERPRISES PTE LTD}

^{Former Name : UMEDA
TRADING PTE LTD}

^{Business Address : 63 ROBINSON
ROAD}

^#05-09

^{AFRO-ASIA BUILDING}

^{Town :
SINGAPORE}

^{Postcode :
068894}

^{County :
-}

^{Country :
Singapore}

^{Telephone :
6226 0254}

^{Fax :
6222 5943}

^{ROC Number :
198301171Z}

^{Reg. Town :
-}

PREVIOUS IDENTIFICATION

^{UMEDA TRADING
PTE LTD}

^{DATE OF CHANGE
OF NAME: 11/06/1991}

SUMMARY

^{Legal Form :
Exempt Pte Ltd}

^{Date Inc. :
15/03/1983}

^{Previous Legal
Form : -}

^{Summary year :
31/03/2004}

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

^{Sales :
23,008,381}

^{Net worth :
574,935}

^{Capital :
500,000}

^{Paid-Up Capital : 200,000}

^{Employees :
3}

^{Net result :
71,268}

^{Share value :
1}

^{Auditor :
LEE S F & CO}

REFERENCES

^{CCMS Number : 702000410050}

^{Report Date :
17/05/2006}

^{Update Date : 17/05/2006}

^{Credit Requested : NA}

^{Credit Opinion :
NA}

^{Litigation :
NO}

^{Company status : TRADING}

^{Started : 15/03/1983}

PRINCIPAL(S)

^{KASIM S/O
TAIYEBALI S2001192J Managing Director}

DIRECTOR(S)

^{KASIM S/O
TAIYEBALI S2001192J Director}

^{Appointed on : 15/07/1992}

^{Street : 108 JALAN RAJAH}

^#04-122

^{Town :
SINGAPORE}

^{Postcode : 320108}

^{Country : Singapore}

^{KASIM S/O
TAIYEBALI S2001192J Managing Director}

^{Appointed on : 02/11/1992}

^{Street : 108 JALAN RAJAH}

^#04-122

^{Town :
SINGAPORE}

^{Postcode : 320108}

^{Country : Singapore}

^{CHUA CHIN
SEONG S2009039A Director}

^{Appointed on : 25/05/1991}

^{Street : 14A CAMDEN PARK}

^{Town :
SINGAPORE}

^{Postcode : 299816}

^{Country : Singapore}

ACTIVITY(IES)

^{TIMBER - WHSLE}^Code:21690

^{BASED ON ACRA'S
RECORD AS AT 10/05/2006}

^{1) WHOLESALE OF
SAWN TIMBER, PLYWOOD AND RELATED PRODUCTS}

CHARGES

^{Date :
06/06/2001}

^{Comments :
CHARGE NO: 200102548}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

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

^{Date :
08/01/1998}

^{Comments :
CHARGE NO: 199800109}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): BANK OF SINGAPORE LIMITED}

^{Date :
25/09/1992}

^{Comments :
CHARGE NO: 9204014}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

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

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{ABN AMRO BANK
N.V.}

^{BANK OF
SINGAPORE LIMITED}

SHAREHOLDERS(S)

^{KASIM S/O
TAIYEBALI}^{100,000 Private Person}

^{Street : 108 JALAN RAJAH}

^#04-122

^{Town :
SINGAPORE}

^{Postcode : 320108}

^{Country : Singapore}

^{CHUA CHIN SEONG}^{100,000 Private Person}

^{Street : 14A CAMDEN PARK}

^{Town :
SINGAPORE}

^{Postcode : 299816}

^{Country : Singapore}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments :
REGULAR}

^{Trend : LEVEL}

^{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}

^{Date
Account Lodged:
20/02/2006}

^{Balance
Sheet Date:
31/03/2004 31/03/2003}

^{Number
of weeks:
52 52}

^{Consolidation
Code: COMPANY
COMPANY}

^{---
ASSETS ---}

^{Inventories: 28,061}

^{Receivables: 1,662,537 1,702,308}

^{Cash,Banks,
Securitis: 1,915,077 1,794,653}

^{Other
current assets:
451,878
350,426}

^{Total
Current Assets}^{: 4,057,553
3,847,387}

^{TOTAL ASSETS: 4,057,553 3,847,387}

^{---
LIABILITIES ---}

^{Equity
capital:
200,000
200,000}

^{Profit
& lost Account: 374,935 303,667}

^Total
Equity^{: 574,935 503,667}

^{L/T
deffered taxes:
665 665}

^{Total
L/T Liabilities}^{: 665 665}

^{Trade
Creditors:
1,540,785
1,454,082}

^{Due
to Bank:
180,400
111,248}

^{Provisions: 32,840 27,612}

^{Other
Short term Liab.: 1,727,928 1,750,113}

^{Total
short term Liab}^{.: 3,481,953 3,343,055}

^{TOTAL LIABILITIES: 3,482,618 3,343,720}

^{---
PROFIT & LOSS ACCOUNT ---}

^{Net
Sales 23,008,381 17,222,382}

^{Gross
Profit:
1,321,743
1,270,147}

^{Result
of ordinary operations
303,244
335,241}

^{NET
RESULT BEFORE TAX:
82,417 157,645}

^{Tax
:
11,149
31,519}

^{Net
income/loss year:
71,268
126,126}

^{Interest
Paid:
220,827
177,596}

^{Directors
Emoluments:
187,945
260,320}

^{Purchases,Sces
& Other Goods:
21,686,638
15,952,235}

^{Wages
and Salaries:
70,088
69,790}

^{Financial
Income: 7,266 5,937}

RATIOS

^{31/03/2004 31/03/2003}

^{Turnover
per employee: 7669460.33
5740794.00}

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

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

^{Net
Margin(%): 0.31
0.73}

^{Return
on Equity(%): 12.40 25.04}

^{Return
on Assets(%): 1.76
3.28}

^{Net
Working capital: 575600.00
504332.00}

^{Cash
Ratio: 0.55
0.54}

^{Quick
Ratio: 1.03
1.05}

^{Current
ratio: 1.17
1.15}

^{Receivables
Turnover: 26.01 35.58}

^{Leverage
Ratio: 6.06
6.64}

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:

WE DID NOT OBSERVE THE COUNTING OF THE PHYSICAL STOCKS AS AT 31 MARCH 2004.

THE FINANCIAL CONDITION OF THE COMPANY WAS DEEMED TO BE FAIR IN VIEW OF THE FOLLOWING:

NET WORTH:

THE BALANCESHEET WAS CONSIDERED PASSABLE WITH TOTAL EQUITY INCREASED BY 14.15%, AMOUNTING TO S$574,935 (2003: S$503,667). THIS WAS CONTRIBUTED BY HIGHER RETAINED PROFITS OF 23.47%, TOTALLING S$374,935 (2003: S$303,667).

LEVERAGE:

THE LEVERAGE RATIO REMAINED AGGRESSIVE AT 6.06 TIMES DESPITE POSTING LOWER THAN PRIOR FINANCIAL YEAR OF 6.64 TIMES.

IN THE SHORT-TERM, TRADE CREDITORS AMOUNTED TO S$1,540,785

(2003: S$1,454,082), RISING BY 5.96%. AMOUNT DUE TO BANKS SURGED BY 62.16%, ACCOUNTING FOR S$180,400 (2003: S$111,248).

THE BANK OVERDRAFT (CLASSIFIED UNDER DUE TO BANKS) WAS SECURED BY PLEDGE OF COMPANY'S FIXED DEPOSITS AND DIRECTORS' PERSONAL GUARANTEES.

THE COMPONENT OF S$1,727,928 (2003: S$1,750,113) REFERRED TO:

* OTHER CREDITORS AND ACCRUALS OF S$930,042 (2003: S$912,191)

* AMOUNT DUE TO A DIRECTOR OF S$529,387 (2003: S$427,746)

* AMOUNT DUE TO SHAREHOLDERS OF S$29,800 (2003: S$29,800)

* AMOUNT DUE TO A RELATED PARTY OF S$138,699 (2003: S$140,376)

* PROPOSED DIRECTORS' FEES OF S$100,000 (2003: S$240,000)

LIQUIDITY:

THE OVERALL LIQUIDTY SITUATION OF THE COMPANY WAS FAIRLY HEALTHY. NET WORKING CAPITAL WAS ROBUST AT S$575,600 (2003: S$504,332), UP BY 14.13%. THIS WAS IN TANDEM WITH THE CASH AND CASH EQUIVALENTS, WHICH ALSO INCREASED BY 6.71%, AMOUNTING TO S$1,915,077 (2003: S$1,794,653).

CURRENT RATIO ALSO POSTED SLIGHTLY HIGHER AT 1.17 TIMES IN

COMPARATIVE TO THE PRIOR FINANCIAL YEAR OF 1.15 TIMES. HOWEVER, QUICK RATIO FELL MARGINALLY, REGISTERING AT 1.03 TIMES (2003: 1.05 TIMES).

PROFITABILITY:

REVENUE FOR FY2004 POSTED FAVOURABLY AT S$23,008,381

(2003: S$17,222,382), WITH A NOTABLE INCREMENT OF 33.60%. HOWEVER,

OVERALL NET PROFIT REGISTERED LOWER BY 43.49%, ACCOUNTING FOR

S$71,268 (2003: S$126,126). THIS COULD BE ATTRIBUTABLE TO AN INCREASE IN OTHER OPERATING EXPENSES OF S$9,303 (2003: S$7,108) AS WELL AS ADMINISTRATIVE EXPENSES OF S$1,016,462 (2003: S$933,735).

AS A RESULT, NET MARGIN WAS FELL AND WAS CONSERVATIVE AT 0.31%

(2003: 0.73%).

DEBT SERVICING:

DEBT SERVICING PROBLEMS WOULD NOT BE ANTICIPATED IN VIEW OF THE SUFFICIENT LIQUIDITY OF THE COMPANY AND IF REVENUES CONTINUE TO BE GENERATED. IN ADDITION, INTEREST COVERAGE RATIO WAS HEALTHY AT 1.37 TIMES (2003: 1.89 TIMES).

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

15/03/1983 AS A LIMITED EXEMPT PRIVATE COMPANY AND WAS FORMERLY TRADING UNDER THE NAMESTYLE OF "UMEDA TRADING PTE. LTD.". SUBSEQUENTLY ON 11/06/1991, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "AKBARWOOD ENTERPRISES PTE LTD".

AS AT 10/05/2006, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF

200,000 SHARES OF A VALUE OF S$200,000.

PRINCIPAL ACTIVITIES:

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

1) WHOLESALE OF SAWN TIMBER, PLYWOOD AND RELATED PRODUCTS

DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL

ACTIVITIES ARE THOSE OF DEALING IN IMPORT AND EXPORT OF PLYWOOD AND TIMBER PRODUCTS.

FROM THE RESEARCH CONDUCTED, THE FOLLOWING INFORMATION WAS GATHERED:

SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE

CLASSIFICATION OF: TIMBER IMPORTERS AND EXPORTERS.

SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:

* IMPORTER & EXPORTER OF TIMBER, PLYWOOD AND PROCESSED RELATED PRODUCTS, TEXTILES AND COMMODITY ITEMS

FROM THE TELE-INTERVIEW CONDUCTED ON 17/05/2006, THE FOLLOWING INFORMATION WAS REVEALED:

SUBJECT ENGAGES IN THE IMPORT AND EXPORT OF RAW TIMBER LIKE PINE.

IMPORT COUNTRY:

* MALAYSIA

EXPORT COUNTRIES:

* MIDDLE EAST REGION

NO OTHER INFORMATION WAS GATHERED VIA THE TELE-INTERVIEW CONDUCTED.

NUMBER OF EMPLOYEES (31 MARCH):

* COMPANY - 2004: 3 (2003: 3)

REGISTERED AND BUSINESS ADDRESS:

63 ROBINSON ROAD

#05-09

AFRO-ASIA BUILDING

SINGAPORE 068894

DATE OF CHANGE OF ADDRESS: 26/06/1991

-- PREMISE OWNED BY AFRO-ASIA SHIPPING COMPANY (PRIVATE) LIMITED

WEBSITE:

* NIL

EMAIL:

* akbarwood@pacific.net.sg

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE:

1) KASIM S/O TAIYEBALI, A SINGAPOREAN

- HOLDS NO OTHER DIRECTORSHIP AS RECORDED IN OUR DATABASE

2) CHUA CHIN SEONG, A SINGAPOREAN

- HOLDS OTHER DIRECTORSHIPS IN

KIAN GUAN INVESTMENTS PTE LTD

BATAVIA EXIMP & CONTRACTING (S) PTE LTD

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%.

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.

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%.

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%.

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%.

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.

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