MIRA INFORM REPORT

Report Date :

30.01.2008

IDENTIFICATION DETAILS

Name :	HOUSE OF GEMS PTE LTD
Registered Office :	^545 Orchard Road ^# 08-06 Far East Shopping Centre
Country :	Singapore
Financials (as on) :	30.06.2007
Date of Incorporation :	^18/07/1986
Com. Reg. No.:	^198601496N
Legal Form :	^Exempt Pte Ltd
Line of Business :	^Deal in all kinds of Jewelleries, Diamonds, Gems and Precious Stones

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

HOUSE OF GEMS PTE LTD

Line Of Business 

^{DEAL IN ALL KINDS OF JEWELLERIES, DIAMONDS, GEMS AND PRECIOUS STONES.}

Parent Company

-

Financial Elements

FY 2007

COMPANY

Sales : S$24,398,287

Networth : S$ 1,450,664

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

Net result : S$ 55,155

Net Margin(%) : 0.23

Return on Equity(%) : 3.80

Leverage Ratio : 12.79

COMPANY IDENTIFICATION

^{Subject Company : HOUSE OF GEMS PTE LTD}

^{Former Name : -}

^{Business Address : 545 ORCHARD ROAD #08-06}

^{FAR EAST SHOPPING CENTRE}

^{Town : SINGAPORE}

^{Postcode : 238882}

^{County :}

^{Country : Singapore}

^{Telephone : 6732 2877}

^{Fax : 6235 1946}

^{ROC Number : 198601496N}

^{Reg. Town :}

SUMMARY

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

^{Legal Form : Exempt Pte Ltd}

^{Date Inc. : 18/07/1986}

^{Previous Legal Form : -}

^{Summary year : 30/06/2007}

^{Sales : 24,398,287}

^{Networth : 1,450,664}

^{Capital : -}

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

^{Employees : 5}

^{Net result : 55,155}

^{Share value : -}

^{Auditor : RAMA & CO}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 18/07/1986}

PRINCIPAL(S)

^{SHETH RAJESH PRAVINCHANDRA S2647693C Director}

DIRECTOR(S)

^{MANISHA RAJESH SHETH S2741953D Director}

^{Appointed on : 26/02/1991}

^{Street : 75 MEYER ROAD}

^#21-01

^{HAWAII TOWER}

^{Town : SINGAPORE}

^{Postcode : 437901}

^{Country : Singapore}

^{CLIFFORD EMMANUEL GERMAIN S2191478I Company Secretary}

^{Appointed on : 25/11/1996}

^{Street : 33A SURIN AVENUE}

^{CHARLTON COURT}

^{Town : SINGAPORE}

^{Postcode : 535617}

^{Country : Singapore}

^{SHETH RAJESH PRAVINCHANDRA S2647693C Director}

^{Appointed on : 19/07/1986}

^{Street : 75 MEYER ROAD}

^#21-01

^{HAWAII TOWER}

^{Town : SINGAPORE}

^{Postcode : 437901}

^{Country : Singapore}

ACTIVITY(IES)

^{DIAMONDS - WHSLE Code:6450}

^{JEWELLERS - MFRS Code:12260}

^{BASED ON ACRA'S RECORD}

^{1) WHOLESALE OF PERSONAL EFFECTS; WHOLES PERSONAL EFFECTS}

^{2) MANUFACTURE OF COSTUME JEWELLERY}

CHARGES

^{Date : 21/06/2003}

^{Comments : CHARGE NO : C200302910}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : BNP PARIBAS}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{BNP PARIBAS}

SHAREHOLDERS(S)

^{MANISHA RAJESH SHETH 500,000 Private Person}

^{Street : 75 MEYER ROAD}

^#21-01

^{HAWAII TOWER}

^{Town : SINGAPORE}

^{Postcode : 437901}

^{Country : Singapore}

^{SHETH RAJESH PRAVINCHANDRA 500,000 Private Person}

^{Street : 75 MEYER ROAD}

^#21-01

^{HAWAII TOWER}

^{Town : SINGAPORE}

^{Postcode : 437901}

^{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}

FINANCIAL ELEMENTS

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

^{Audit Qualification: "MILD" UNCERTAINTIES "MILD" UNCERTAINTIES Date Account Lodged: 04/01/2008}

^{Balance Sheet Date: 30/06/2007 30/06/2006 Number of weeks: 52 52 Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 12,036 14,905 Investments 132,750 80,500}

^{Total Fixed Assets: 144,786 95,405}

^{Inventories: 10,032,548 13,075,662 Receivables: 6,795,159 4,979,938}

^{Cash,Banks, Securitis: 2,782,026 4,098,181 Other current assets: 245,690 253,497}

^{Total Current Assets: 19,855,423 22,407,278}

^{TOTAL ASSETS: 20,000,209 22,502,683}

^{--- LIABILITIES ---}

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

^{Reeval. Reserves: 76,250 24,000}

^{Profit & lost Account: 374,414 319,259}

^{Total Equity: 1,450,664 1,343,259}

^{Trade Creditors: 7,895,824 10,218,567}

^{Prepay. & Def. charges: 124,200 124,200 Provisions: 15,494 12,760}

^{Other Short term Liab.: 10,514,027 10,803,897}

^{Total short term Liab.: 18,549,545 21,159,424}

^{TOTAL LIABILITIES: 18,549,545 21,159,424}

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

^{Net Sales 24,398,287 20,516,087}

^{Purchases,Sces & Other Goods: 23,796,214 20,095,750 Gross Profit: 602,073 420,337 NET RESULT BEFORE TAX: 58,384 89,244 Tax : 3,229 12,010}

^{Net income/loss year: 55,155 77,234 Depreciation: 5,135 4,682 Directors Emoluments: 208,140 208,140 Wages and Salaries: 16,979 164}

^{Financial Income: 116,412 105,818}

RATIOS

^{30/06/2007 30/06/2006}

^{Turnover per employee: 4879657.40 4103217.40 Stock / Turnover(%): 0.41 0.64 Net Margin(%): 0.23 0.38 Return on Equity(%): 3.80 5.75 Return on Assets(%): 0.28 0.34 Net Working capital: 1305878.00 1247854.00 Cash Ratio: 0.15 0.19 Quick Ratio: 0.52 0.43 Current ratio: 1.07 1.06 Receivables Turnover: 100.26 87.38 Leverage Ratio: 12.79 15.75}

^{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}

^{Dividends Coverage : Net income loss year/Dividends}

^{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}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{AUDITORS REPORT:}

^{AS STATED IN THE FINANCIAL STATEMENTS, INVENTORIES OF S$10,032,548 ARE STATED IN THE FINANCIAL STATEMENTS BASED ON DIRECTORS ESTIMATE OF THE LOWER OF COST AND NET REALISABLE VALUE. OWING TO THE NATURE OF THE COMPANY'S, WE WERE UNABLE TO SATISFY OURSELVES AS TO QUANTIFY AND VALUATION OF THE INVENTORIES AS AT 30/06/2007.}

^{WE ARE UNABLE TO ASCERTAIN THE VALIDITY AND COLLECTIBILITY OF TRADE RECEIVABLE BALANCES OF S$313,791, AS THESE BALANCES HAVE BEEN LONG OUTSTANDING. THE DIRECTORS ARE OF THE OPTION THAT THEY ARE ABLE TO RECOVER THESE TRADE RECEIVABLE BALANCES IN FORTHCOMING YEARS. HOWEVER, WE ARE UNABLE TO ADOPT ANY OTHER ALTERNATIVE AUDIT PROCEDURES TO ASCERTAIN THE RECOVERABILITY OF THESE BALANCES.}

^{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 8.00% FROM S$1,343,259 IN 2006 TO S$1,450,664 IN 2007. THIS WAS DUE TO HIGHER RETAINED PROFITS OF S$374,414 (2006: 319,259); A RISE OF 17.28% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER SHORT TERM LIABILITIES WHICH MADE UP 56.68% (2006: 51.06%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$10,514,027 (2006: S$10,803,897). BREAKDOWN WAS AS FOLLOWS:}

^{* RELATED PARTY (NON TRADE) - 2007: S$2,316,687 (2006: S$2,316,687)}

^{* DIRECTORS (NON TRADE) - 2007: S$8,197,340 (2006: S$8,487,210)}

^{TRADE CREDITORS FELL BY 22.73% AND AMOUNTED TO S$7,895,824 (2006: S}

^{$10,218,567). BREAKDOWN WAS AS FOLLOWS:}

^{* RELATED PARTY (TRADE) - 2007: S$2,487,625 (2006: S$2,487,625)}

^{* OUTSIDE PARTIES (TRADE) - 2007: S$5,273,692 (2006: S$7,676,214)}

^{* GST PAYABLES (TRADE) - 2007: S$134,507 (2006: S$54,728)}

^{IN ALL, LEVERAGE RATIO FELL FROM 15.75 TIMES TO 12.79 TIMES AS A}

^{RESULT OF A RISE IN TOTAL EQUITY AND A FALL IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 4.65% TO S$1,305,878 (2006: S$1,247,854).}

^{BOTH CURRENT AND QUICK RATIOS ROSE TO 1.07 TIMES (2006: 1.06 TIMES) AND 0.52 TIMES (2006: 0.43 TIMES) RESPECTIVELY.}

^{CASH AND CASH EQUIVALENTS FELL BY 32.12% FROM S$4,098,181 IN 2006 TO S$2,782,026 IN 2007. BREAKDOWN WAS AS FOLLOWS:}

^{* CASH AND BANK BALANCES - 2007: S$1,004,253 (2006: S$698,532)}

^{* FIXED DEPOSITS - 2007: S$1,777,773 (2006: S$3,399,649)}

^{PROFITABILITY:}

^{SUBJECT POSTED AN INCREASE IN REVENUE OF 18.92% WHICH AMOUNTED TO S$24,398,287 (2006: S$20,516,087). HOWEVER, NET PROFIT FELL BY 28.59% WHICH AMOUNTED TO S$55,155 (2006: S$77,234). THIS COULD BE DUE TO THE DECREASE OF OTHER INCOME BY 97.93% AND AMOUNTED TO S$5,474 (2006: S$264,292). HENCE, NET MARGIN FELL TO 0.23% (2006: 0.38%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED OR IMPROVED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING. IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 100 DAYS (2006: 87 DAYS).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{* CONTINGENT LIABILITIES - AS AT 30/06/2007, THE COMPANY HAS CONTINGENT LIABILITIES RELATING TO DEBTORS BY GUARANTEES AND SHIPPING GUARANTEES AMOUNTING TO NIL (2006: S$301,378 – EQUIVALENT TO US$190,384.}

^{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 RECORDS.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 18/07/1986 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE OF "HOUSE OF GEMS PTE LTD".}

^{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 AND CORPORATE REGULATORY}

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

^{1) WHOLESALE OF PERSONAL EFFECTS; WHOLES PERSONAL EFFECTS}

^{2) MANUFACTURE OF COSTUME JEWELLERY}

^{FROM THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY WAS TO DEAL IN ALL KINDS OF JEWELLERIES, DIAMONDS, GEMS AND PRECIOUS STONES.}

^{THE COMPANY WAS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE}

^{CLASSIFICATION OF: DIAMONDS}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* WHOLESALE TRADING OF JEWELLERIES (EG DIAMONDS)}

^{* IMPORT AND EXPORT OF VALUABLE STONES}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:}

^{* WORLD FEDERATION OF DIAMOND BOURSES}

^{* SINGAPORE JEWELLERS ASSOCIATION}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 30/01/2008, SUBJECT HAS 5}

^{EMPLOYEES. NO OTHER TRADE INFORMATION WAS AVAILABLE.}

^{NUMBER OF EMPLOYEES; DIRECTORS (30 JUNE):}

^{* 2006 - NOT AVAILABLE}

^{* 2005 - 5}

^{* 2004 - 6}

^{* 2003 - 6}

^{* 2002 - 6}

^{REGISTERED AND BUSINESS ADDRESS:}

^{545 ORCHARD ROAD}

^#08-06

^{FAR EAST SHOPPING CENTRE}

^{SINGAPORE 238882}

^{DATE OF CHANGE OF ADDRESS: 09/04/1999}

^{- RENTED PREMISE}

^{- PREMISE OWNED BY: ORCHARD CENTRE HOLDINGS (PTE) LTD}

^{WEBSITE: -}

^{EMAIL: hog@pacific.net.sg}

MANAGEMENT

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

^{1) SHETH RAJESH PRAVINCHANDRA, A SINGAPORE PERMANENT RESIDENT}

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

^{2) MANISHA RAJESH SHETH, A SINGAPORE PERMANENT RESIDENT}

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

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.

HIGH QUALITY COMPETITIVENESS IN ASIA

EXCELLENT BUSINESS CLIMATE

POLITICAL STABILITY.

WEAKNESSES

SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.

AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.

GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.

BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.6% IN 3Q 2007, WEAKER THAN THE 8.4% GROWTH IN 2Q 2007. ALTHOUGH NON-OIL RE-EXPORTS STRENGTHENED IN THE QUARTER, RETAIL SALES RECORDED SLOWER GROWTH.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.6% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 7.5%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF FOOD, BEVERAGES AND TOBACCO (45.7%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (23.3%). OTHER WHOLESALE SEGMENTS THAT REPORTED BETTER BUSINESS WERE WHOLESALING OF INDUSTRIAL AND CONSTRUCTION MACHINERY (9.7%) TELECOMMUNICATIONS AND COMPUTERS (8.3%) AND CHEMICALS AND CHEMICAL PRODUCTS (6.8%).

ON THE OTHER HAND, WHOLESALE SEGMENTS THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-19.4%), HOUSEHOLD EQUIPMENT AND FURNITURE (-4.4%), SHIP CHANDLERS AND BUNKERING (-3.1%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 4.9% IN 3Q 2007 OVER 3Q 2006. DOMESTIC SALES EXCLUDING PETROLEUM ROSE BY 9.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 3Q 2007 ROSE BY 12.2% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 3Q 2007 OVER PREVIOUS QUARTER. SHIP CHANDLERS AND BUNKERING EXPANDED BY 27.9%, MAINLY DUE TO HIGHER BUNKER SALES.

THE GENERAL WHOLESALE TRADE SECTOR FELL IN 3Q 2007 AFTER RECORDING STRONG GROWTH IN 2Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 3Q 2007 ROSE BY 4.3%, IN COMPARISON TO 3Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 9.0%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (51.2%) AND TIMBER, PAINT AND CONSTRUCTION MATERIALS (15.5%). OTHER WHOLESALE SECTORS THAT REGISTERED BETTER BUSINESS IN 3Q 2007 WERE CHEMICALS AND CHEMICAL PRODUCTS (7.6%) AND TELECOMMUNICATIONS AND COMPUTERS (5.0%)

FOREIGN SALES OF SHIP CHANDLERS AND BUNKERING, GENERAL WHOLESALE TRADE, INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS REGISTERED INCREASES OF 2.6% TO 6.1 %IN 3Q 2007, IN CONTRAST TO THE LOWER SALES IN THE PREVIOUS QUARTER.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 8.0% IN 3Q 2007 OVER 3Q 2006.

EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 12.0%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 3Q 2007 ROSE BY 4.9% OVER 2Q 2007. EXCLUDING PETROLEUM, IT GREW BY 8.2%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 3Q 2007 WITH THE EXCEPTION OF CHEMICALS AND CHEMICAL PRODUCTS. WHOLESALE TRADE OF FOOD, BEVERAGES AND TOBACCO, AND SHIP CHANDLERS AND BUNKERING BOTH GREW BY 17.1%. WHOLESALE OF ELECTRONIC COMPONENTS ROSE BY 12.5%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE BY 1.3%, WEAKER THAN THE 7.9% IN 2Q 2007. MOTOR VEHICLES FELL BY 6.8% COMPARED TO THE 2.4% GROWTH IN 2Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.7%, A DECLINE FROM THE 11.O% IN 2Q 2007.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THIS APPLIES PARTICULARLY TO FIRMS IN THE WHOLESALING OF FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, COSMETICS AND TOILETRIES, AND HOUSEHOLD AND ELECTRICAL APPLIANCES.

AS A RESULT OF YEAR-END FESTIVE SHOPPING, A NET WEIGHTED BALANCE OF 31% OF RETAILERS EXPECTS BUSINESS TO IMPROVE IN THE COMING MONTHS. THE RETAIL SECTORS THAT ARE FORECASTING BETTER BUSINESS INCLUDING DEPARTMENT STORE AND SUPERMARKET OWNERS, WEARING APPAREL AND FOOTWEAR, FURNITURE AND FURNISHINGS, AND JEWELLERY AND WATCHES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY

SINGAPORE DEPARTMENT OF STATISTICS

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.	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

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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