MIRA INFORM REPORT

Report Date :

6^th November 2006

IDENTIFICATION DETAILS

Name :	WOOD CRAFT INTERNATIONAL PTE LTD

Registered Office :	180 Cecil Street, # 15 – 01, Bangkok Bank Building, Singapore - 069546

Country :	Singapore

Date of Incorporation :	^06/03/2003

Com. Reg. No.:	^200302043E

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	^{Importers and exporters of timbers}

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

WOOD CRAFT INTERNATIONAL PTE LTD

Line Of Business

^{IMPORT AND EXPORT
OF TIMBERS}

Parent Company

Financial Elements

Sales	-
Networth	-
Paid-Up Capital	S$ 2,000,000
Net result	-

Net Margin(%)	-
Return on Equity(%)	-
Leverage Ratio	-

Rating

Credit Rating : Sing $ 1000001 to Sing $ 5000000

COMPANY IDENTIFICATION

^{Subject Company}	^{WOOD CRAFT INTERNATIONAL PTE. LTD.}
^{Former Name}	^-
^{Business Address}	^{180 CECIL STREET}
	^#15-01
	^{BANGKOK BANK BUILDING}
^Town	^SINGAPORE
^Postcode	⁰⁶⁹⁵⁴⁶
^County	^-
^Country	^Singapore
^Telephone	^{6224 8696}
^Fax	^{6224 8697}
^{ROC Number}	^200302043E
^{Reg. Town}	^-

SUMMARY

^{Legal Form}	^{Exempt Pte Ltd}
^{Date Inc.}	^06/03/2003
^{Previous Legal Form}	^-
^{Summary year}	^-
^{All amounts in this report are in}	^SGD
^Sales	^-
^Capital	^2,000,000
^{Paid-Up Capital}	^2,000,000
^Employees	^{AROUND 4}
	^-
^{Net result}	^-
^{Share value}	¹
^AUDITOR	^{MGI MENON & ASSOCIATES}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started :
/03/2003}

PRINCIPAL(S)

^{MANAK CHAND
MAHESWARI S2583525E Director}

DIRECTOR(S)

^{ARUMUGAM CHETTIAR
MANICKAM S0537812E
Company Secretary}

^{Appointed on : 06/03/2003}

^{Street : 184
STIRLING ROAD}

^#07-242

^{Town: SINGAPORE}

^{Postcode: 140184}

^{Country: Singapore}

^{SWARAN SINGH S1157721J Company Secretary}

^{Appointed on : 29/08/2003}

^{Street : 402
SIN MING AVENUE}

^#15-319

^{Town: SINGAPORE}

^{Postcode: 570402}

^{Country: Singapore}

^{MANAK CHAND
MAHESWARI S2583525E Director}

^{Appointed on : 17/04/2003}

^{Street : 81
MEYER ROAD}

^#07-02

^{Town: SINGAPORE}

^{Postcode: 437908}

^{Country: Singapore}

^{MADHUBALA
MAHESHWARI S2583526C Director}

^{Appointed on : 17/04/2003}

^{Street : 763A
MOUNTBATTEN ROAD}

^{Town: SINGAPORE}

^{Postcode: 437849}

^{Country: Singapore}

^{SHAMBU PRASAD
BIYANI V173808 Director}

^{Appointed on : 17/04/2003}

^{Street : 114A
ARTHUR ROAD}

^#18-06

^{Town: SINGAPORE}

^{Postcode: 439826}

^{Country: Singapore}

^{AJAY KUMAR
DHAR S2699761E Director}

^{Appointed on : 06/03/2003}

^{Street : 15
LEONIE HILL ROAD}

^{#16-02 HORIZON TOWERS EAST}

^{Town: SINGAPORE}

^{Postcode: 239194}

^{Country: Singapore}

^{TANU MERH S7182245A Director}

^{Appointed on : 06/03/2003}

^{Street : 15
LEONIE HILL ROAD}

^{#16-02 HORIZON TOWERS EAST}

^{Town: SINGAPORE}

^{Postcode: 239194}

^{Country: Singapore}

^{AUTAR KRISHEN
DHAR A9950559 Director}

^{Appointed on : 06/03/2003}

^{Street : 9/1
R.N. MUKHERJEE ROAD}

^{Town: KOLKATA}

^{Postcode: 700001}

^{Country: India}

ACTIVITY(IES)

^{TIMBER - RETAIL}^Code:21670

^{COMMODITY TRADERS}^Code:5010

^{TIMBER - COMMISSION}^Code:21640

^{IMPORTERS And
EXPORTERS}^Code:11760

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

^{TIMBER
TRADING/PRODUCTRS, COMODITIES, PULSE/PAPER, INDENTING/COMMISSION AGENTS}

CHARGES

^{Date: 21/04/2003}

^{Comments : CHARGE
NO: C200301752}

^{AMOUNT SECURED: 0.00 AND
ALL MONIES OWING}

^{CHARGEE(S): THE HONG
KONG & SHANGHAI BANKING CORPORATION LTD}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE HONGKONG &
SHANGHAI BANKING CORPORATION LTD}

^{INDIAN OVERSEAS
BANK}

SHAREHOLDERS(S)

^{MANAK CHAND
MAHESWARI}^{701,840 Private Person}

^{Street : 81
MEYER ROAD}

^#07-02

^{Town: SINGAPORE}

^{Postcode: 437908}

^{Country: Singapore}

^{MADHUBALA
MAHESHWARI}^{624,660 Private Person}

^{Street : 763A
MOUNTBATTEN ROAD}

^{Town: SINGAPORE}

^{Postcode: 437849}

^{Country: Singapore}

^{SHAMBU PRASAD
BIYANI}^{173,500 Private Person}

^{Street : 114A
ARTHUR ROAD}

^#18-06

^{Town: SINGAPORE}

^{Postcode: 439826}

^{Country: Singapore}

^{AJAY KUMAR DHAR}^{300,000 Private Person}

^{Street : 15
LEONIE HILL ROAD}

^{#16-02
HORIZON TOWERS EAST}

^{Town: SINGAPORE}

^{Postcode: 239194}

^{Country: Singapore}

^{TANU MERH}^{200,000 Private Person}

^{Street : 15
LEONIE HILL ROAD}

^{#16-02 HORIZON TOWERS EAST}

^{Town: SINGAPORE}

^{Postcode: 239194}

^{Country: Singapore}

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 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.}

BACKGROUND/OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 06/03/2003 AS A LIMITED EXEMPT
PRIVATE COMPANY UNDER ITS PRESENT NAMESTYLE OF "WOOD CRAFT INTERNATIONAL
PTE LTD".}

^{AS AT 20/01/2006,
THE COMPANY HAS AN AUTHORISED CAPITAL OF 2,000,000 SHARES OF WHICH 2,000,000
SHARES OF A PAR VALUE OF S$1 EACH ARE ISSUED AND PAID-UP.}

^{PRINCIPAL
ACTIVITIES}

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

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

^EXPORTERS)

^{TIMBER
TRADING/PRODUCTRS, COMODITIES, PULSE/PAPER, INDENTING/COMMISSION AGENTS}

^{THE COMPANY IS
LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: TIMBER
RETAIL}

^{THROUGH OUR
RESEARCH CONDUCTED, THE FOLLOWING INFORMATION HAS BEEN GATHERED.}

^ACTIVITIES:

^{* IMPORT AND EXPORT
OF TIMBERS}

^PURCHASES:

^{* IMPORTS (%): 100}

^{* TERMS OF IMPORT:
30 DAYS TERMS, ETC}

^{* IMPORT COUNTRIES:
MALAYSIA AND BURMA MAINLY}

^MARKETS:

^{* LOCAL (%): 0}

^{* TERMS SALES: -}

^{* EXPORT(%): 100}

^{* TERMS OF EXPORT:
30 DAYS TERMS, ETC}

^{* EXPORT COUNTRIES:
INDIA MAINLY}

^{NO. OF EMPLOYEES :}

^{* COMPANY - 2006:
AROUND 4}

^{NO OTHER TRADE
INFORMATION IS AVAILABLE ON 25/01/2006.}

^{REGISTERED OFFICE
AND BUSINESS ADDRESS:}

^{180 CECIL STREET}

^{# 15-01}

^{BANGKOK BANK
BUILDING}

^{SINGAPORE 069546}

^{DATE OF CHANGE OF
ADDRESS: 27/12/2004}

^{-- RENTED PREMISE}

^{-- PREMISE OWNED BY
BANGKOK BANK PUBLIC COMPANY LIMITED}

^{EMAIL : wipl@mail.com}

^{WEBSITE : -}

MANAGEMENT

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

^{1) AUTAR KRISHEN DHAR, AN INDIAN}

^{BASED IN KOLKATA}

^{2) MANAK CHAND MAHESWARI, A SINGAPOREAN}

^{OTHER DIRECTORSHIPS IN OUR DATABASE:}

^{ROYAL GLOBAL EXPORTS PTE LTD}

^{3) MADHUBALA MAHESHWARI, A SINGAPORE
PERMANENT RESIDENT}

^{NO OTHER DIRECTORSHIP(S) IN OUR
DATABASE}

^{4) SHAMBU PRASAD BIYANI, A SINGAPOREAN}

^{OTHER DIRECTORSHIPS IN OUR DATABASE:}

^{ROYAL GLOBAL EXPORTS PTE LTD}

^{5) AJAY KUMAR DHAR, A SINGAPORE PERMANENT
RESIDENT}

^{NO OTHER DIRECTORSHIP(S) IN OUR
DATABASE}

^{6) TANU MERH, A SINGAPORE PERMANENT
RESIDENT}

^{NO OTHER DIRECTORSHIP(S) IN OUR DATABASE}

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME:
MANAK CHAND MAHESWARI}

^{ADVERSE REPORT
AGAINST DIRECTOR: NIL}

^{PROPERTY OWNERSHIP:
OWN 2 PROPERTIES}

^{PROPERTY 1 (763A MOUNTBATTEN ROAD)}

^{ANNUAL VALUE: S$
52,800}

^{CO-OWNER: NIL}

^{PROPERTY 2 (81 MEYER ROAD #07-02)}

^{ANNUAL VALUE: S$
15,600}

^{CO-OWNER: MADHUBALA
MAHESHWARI}

^{DIRECTOR'S NAME:
MADHUBALA MAHESHWARI}

^{ADVERSE REPORT
AGAINST DIRECTOR: NIL}

^{PROPERTY OWNERSHIP:
OWNS 1 PROPERTY (81 MEYER ROAD #07-02)}

^{ANNUAL VALUE: S$
15,600}

^{CO-OWNER: MANAK
CHAND MAHESWARI}

^{DIRECTOR'S NAME:
SHAMBU PRASAD BIYANI}

^{ADVERSE REPORT
AGAINST DIRECTOR: NIL}

^{PROPERTY OWNERSHIP:
OWNS 1 PROPERTY (114A ARTHUR ROAD #18-06)}

^{ANNUAL VALUE: S$
25,800}

^{CO-OWNER: NIRMALA
BIYANI}

^{DIRECTOR'S NAME:
AJAY KUMAR DHAR}

^{ADVERSE REPORT
AGAINST DIRECTOR: NIL}

^{PROPERTY OWNERSHIP:
OWNS 1 PROPERTY (15 LEONIE HILLL ROAD # 16-02)}

^{ANNUAL VALUE: S$
22,800}

^{CO-OWNER: NIL}

^{DIRECTOR'S NAME:
TANU MERH}

^{ADVERSE REPORT
AGAINST DIRECTOR: NIL}

^{PROPERTY OWNERSHIP:
NIL}

^{ANNUAL VALUE: NIL}

^{CO-OWNER: 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 2005

Investment Grade

The steady political and economic environment has positive effects on an already good payment record of companies. Very weak default probability.

AFTER THE ROBUST ECONOMIC RECOVERY IN 2004, GROWTH SHOULD BECOME MORE MODERATE AMID A LIKELY SLOWDOWN OF WORLD DEMAND FOR ELECTRONIC PRODUCTS, WITH THAT SECTOR REPRESENTING NEARLY TWO-THIRDS OF SINGAPORE'S EXPORTS. THAT SLOWDOWN SHOULD NONETHELESS NOT JEOPARDISE THE SATISFACTORY PAYMENT RECORD OF MOST COMPANIES.

MOREOVER, PUBLIC SECTOR ACCOUNTS SHOULD AGAIN SHOW A SLIGHT SURPLUS, WITH THE PERSISTENCE OF SUBSTANTIAL EXTERNAL ACCOUNT SURPLUSES, LIMITED FOREIGN DEBT, AND COMFORTABLE FOREIGN EXCHANGE RESERVES. FURTHERMORE, THE BANKING SYSTEM HAS REMAINED ONE OF ASIA'S SOUNDEST, DESPITE STIFF DOMESTIC COMPETITION AND AN APPRECIABLE PROPORTION OF NON-PERFORMING LOANS.

HOWEVER, SINGAPORE'S RE-EXPORT ACTIVITY HAS BEEN SAGGING AND THE CURRENT DEVELOPMENT MODEL HAS REACHED ITS LIMITS. TO OFFSET THAT TREND, THE CITY-STATE HAS BEEN WORKING TO IMPROVE ITS POSITIONING. TO ENHANCE SINGAPORE'S ATTRACTIVENESS COMPARED TO OTHER REGIONAL COUNTRIES, GOVERNMENT AUTHORITIES HAVE BEEN REDUCING TAXES ON COMPANIES AND INCREASING THE NUMBER OF INCENTIVES AVAILABLE TO THEM. THEY HAVE ALSO BEEN PROGRESSIVELY PRIVATISING STATE-OWNED ENTERPRISES. FINALLY, WHILE DIVERSIFYING ITS INDUSTRY TOWARD PETROCHEMICAL AND PHARMACEUTICAL PRODUCTS, THE CITY-STATE HAS BEEN FOCUSING ON HIGH VALUE-ADDED SERVICES, BIOTECHNOLOGY DEVELOPMENT, AND ADVANCED RESEARCH.

ASSETS

A STRATEGIC REGIONAL HUB, SINGAPORE HAS ATTRACTED INVESTORS THANKS TO THE QUALITY OF ITS INFRASTRUCTURE AND FINANCIAL SYSTEM.

THE WORKFORCE IS VERY WELL TRAINED AND HIGHLY SKILLED.

ECONOMIC FUNDAMENTALS HAVE BEEN PARTICULARLY GOOD.

THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.

POLITICAL CONTINUITY HAS BEEN REMARKABLE.

WEAKNESSES

THE ECONOMY'S SPECIALISATION IN ELECTRONIC HAS TENDED TO INCREASE ITS EXPOSURE TO SHIFTS IN WORLD ECONOMIC CONDITIONS.

THE DIVERSIFICATION UNDER WAY, NOTABLY IN SERVICES, SHOULD BE ACCELERATED TO BOLSTER THE ECONOMY'S COMPETITIVENESS IN A REGIONAL ENVIRONMENT UNDERGOING PROFOUND CHANGE.

REFORMS ARE STILL NEEDED TO FOSTER ENTREPRENEURIAL SPIRIT AND INNOVATION AS WELL AS MODERNISATION OF THE EDUCATION SYSTEM.

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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