MIRA INFORM REPORT

Report Date :

05.06.2008

IDENTIFICATION DETAILS

Name :	AMDIA PTE LTD

Formerly Known As :	^{GEMIMPEX ASIA PTE. LTD.}

Registered Office :	^{545 Orchard Road} ^#12-05 ^{Ar East Shopping Centre}

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	^09.02.2001

Com. Reg. No.:	^200100853N

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	^{Wholesalers, Importers, Exporters' Agent of and Dealers in all Types and Descriptions of Diamonds, Gems Jewelry, Precious Stone, Semi-Precious Stones}

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

AMDIA PTE LTD

Line Of Business

^{WHOLESALERS,
IMPORTERS, EXPORTERS' AGENT OF AND DEALERS IN ALL}

^{TYPES
AND DESCRIPTIONS OF DIAMONDS, GEMS JEWELRY, PRECIOUS}

^{STONE,
SEMI-PRECIOUS STONES.}

Parent Company

N/A

Financial Elements

FY 2006

COMPANY

Sales : S$2,073,673

Networth : S$ 446,482

Paid-Up Capital : S$ 300,003

Net result : S$ - 54,773

Net Margin(%) : - 2.64

Return on Equity(%) : -12.27

Leverage Ratio : 5.01

COMPANY IDENTIFICATION

^{Subject
Company : AMDIA PTE. LTD.}

^{Former
Name :
GEMIMPEX ASIA PTE. LTD.}

^{Business
Address 545 ORCHARD ROAD}

^#12-05

^{AR
EAST SHOPPING CENTRE}

^{Town : SINGAPORE}

^{Postcode : 238882}

^{County :}

^{Country
: Singapore}

^{Telephone : 6836 7668}

^{Fax : 6836 1286}

^{ROC
Number :
200100853N}

^{Reg.
Town :}

PREVIOUS IDENTIFICATION

^{GEMIMPEX
ASIA PTE. LTD. DATE OF CHANGE
: 17/08/2007 DELTA}

SUMMARY

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

^{Legal Form :}^{Exempt Pte
Ltd}

^{Date Inc. :}^09/02/2001

^{Previous Legal Form : -}

^{Summary year :}^31/12/2006

^{Sales :}^2,073,673

^{Networth :}^446,482

^{Capital :
-}

^{Paid-Up Capital :}^300,003

^{Employees : -}

^{Net result :}^-54,773

^{Share value : -}

^{Auditor :
NIL}

^{BASED
ON ACRA'S RECORD}

^{NO OF SHARES CURRENCY AMOUNT}

^{ISSUED
ORDINARY 300,003 SGD 300,003.00}

^{PAID-UP
ORDINARY - SGD 300,003.00}

REFERENCES

^{Litigation : No}

^{Company
status : TRADING}

^{Started
:
09/02/2001}

PRINCIPAL(S)

^{AVISHAI
MASHIAH
F0640829W Director}

DIRECTOR(S)

^{AVISHAI
MASHIAH
F0640829W Director}

^{Appointed
on : 09/02/2001}

^{Street
: 79 CAIRNHILL ROAD}

^#15-01

^{TRENDALE TOWER}

^{Town: SINGAPORE}

^{Postcode: 229681}

^{Country: Singapore}

^{QUEK
HUNG GUAN S0546086G Company Secretary}

^{Appointed
on : 01/09/2001}

^{Street
: 2A PRINCESS OF WALES ROAD}

^{Town: SINGAPORE}

^{Postcode: 266901}

^{Country: Singapore}

ACTIVITY(IES)

^{JEWELLERS
- WHSLE Code:12280}

^{COMMISSION
MERCHANTS
Code:4990}

^{BASED
ON ACRA'S RECORD}

^{1)
WHOLESALE OF JEWELLERY}

^{2)
WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{AVISHAI
MASHIAH
300,003 Private Person}

^{Street
: 79 CAIRNHILL ROAD}

^#15-01

^{TRENDALE TOWER}

^{Town: SINGAPORE}

^{Postcode: 229681}

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

^{Date
Account Lodged:
14/08/2007}

^{Balance
Sheet Date:
31/12/2006
31/12/2005}

^{Number
of weeks:
52 52}

^{Consolidation
Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible
Fixed Assets:
1,838
7,617}

^{Total Fixed Assets: 1,838 7,617}

^{Inventories: 767,960 737,229}

^{Receivables: 1,715,395 2,360,085}

^{Cash,Banks,
Securitis: 23,923 20,723}

^{Other current assets: 175,120 13,535}

^{Total Current Assets: 2,682,398 3,131,572}

^{TOTAL ASSETS: 2,684,236 3,139,189}

^{--- LIABILITIES ---}

^{Equity
capital:
300,003 300,003}

^{Profit
& lost Account: 146,479 201,252}

^{Total Equity: 446,482 501,255}

^{Trade
Creditors:
490,726
2,370,562}

^{Prepay.
& Def. charges:
2,545
2,545}

^{Provisions: 986}

^{Other
Short term Liab.:
1,743,497
264,827}

^{Total short term Liab.: 2,237,754 2,637,934}

^{TOTAL LIABILITIES: 2,237,754 2,637,934}

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

^{Net
Sales
2,073,673 5,660,550}

^{Purchases,Sces
& Other Goods:
1,986,131
5,220,328}

^{Gross
Profit:
87,542
440,222}

^{Result
of ordinary operations
-51,347
-80,667}

^{NET
RESULT BEFORE TAX:
-54,638
-88,268}

^{Tax
:
135 332}

^{Net
income/loss year:
-54,773
-88,600}

^{Depreciation: 5,301 9,786}

^{Directors
Emoluments:
96,000
142,550}

^{Wages
and Salaries:
50,538
73,763}

RATIOS

^{31/12/2006 31/12/2005}

^{Net result /
Turnover(%):                      -0.03                      -0.02}  ^{Stock
/ Turnover(%):                             0.37                       0.13}  ^{Net Margin(%):
                    -2.64                      -1.57} ^{Return on Equity(%):                       -12.27                     -17.68}  ^{Return on Assets(%):
                          -2.04                      -2.82}  ^{Net Working capital:
              444644.00
493638.00}  ^{Cash Ratio:                                     0.01                       0.01}  ^{Quick Ratio:
                     0.78                       0.90}  ^{Current ratio:                                 1.20                       1.19}  ^{Receivables Turnover:
                297.80                     150.10}  ^{Leverage Ratio:
                          5.01                                5.26}

^{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

^{THE
FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW OF} ^{THE
FOLLOWING:}

^{NET WORTH:}

^{THE
BALANCE SHEET WAS CONSIDERED PASSABLE EVEN THOUGH NET WORTH} ^{DECREASED BY
10.93% FROM S$501,255 IN 2005 TO S$446,482 IN 2006.}

^{THIS
WAS ATTRIBUTED TO A FALL IN ACCUMULATED PROFITS BY 27.22% TO} ^{S$146,479 IN
2006 FROM S$201,252 IN 2005.}

^LEVERAGE:

^{IN
THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER SHORT-TERM} ^{LIABILITIES
WHICH MADE UP 77.91% (2005: 10.04%) OF THE TOTAL CURRENT} ^{LIABILITIES
AND AMOUNTED TO S$1,743,497 (2005: S$264,827). BREAKDOWN} ^{WAS AS
FOLLOWS:}

^{* AMOUNTS DUE TO AA DIRECTOR - 2006:
S$1,742,664 (2005: S$51,979)}

^{* AMOUNTS DUE TO A RELATED PARTY - 2006: NIL
(2005: S$209,604)}

^{* OTHER CREDITORS - 2006: S$833 (2005:
S$3,245)}

^{TRADE
CREDITORS FELL BY 79.30% AND AMOUNTED TO S$490,726 (2005: S$} ^2,370,562).

^{OVERALL,
THE LEVERAGE RATIO HAD IMPROVED TO 5.01 TIMES (2005: 5.26} ^{TIMES),
INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS} ^{SUBSTANTIAL
IN RELATION TO ITS TOTAL EQUITY.}

^LIQUIDITY:

^{IN
GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE EVEN THOUGH} ^{NET WORKING
CAPITAL FELL BY 9.93% TO S$444,644 (2005: S$493,638).}

^{ON
THE OTHER HAND, QUICK RATIO POSTED LOWER AND LACKING AT 0.78 TIMES} ^{(2005: 0.90
TIMES) WHILE CURRENT RATIO IMPROVED AND JUST SUFFICIENT AT} ^{1.20
TIMES (2005: 1.19 TIMES).}

^{CASH
AND CASH EQUIVALENTS ROSE BY 15.44% FROM S$20,723 IN 2005 TO} ^{S$23,923 IN
2006. BREAKDOWN WAS AS FOLLOWS:}

^{* CASH IN HAND - 2006: S$ 5,698 (2005: S$
836)}

^{* CASH AT BANKS - 2006: S$18,225 (2005:
S$19,887)}

^{PROFITABILITY:}

^{SUBJECT
POSTED A DECREASE IN REVENUE OF 63.37% WHICH AMOUNTED TO} ^{S$2,073,673
(2005: S$5,660,550). SIMILARLY, NET
LOSS NARROWED BY} ^{38.18% WHICH AMOUNTED TO S$-54,773 (2005:
S$-88,600). HENCE, NEGATIVE} ^{NET MARGIN ROSE TO 2.64% (2005: -1.57%).}

^{DEBT SERVICING:}

^{DEBT
SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS} ^{CAN BE IMPROVED AND PAYMENTS BY TRADE
DEBTORS ARE FORTHCOMING.} ^{IT WAS NOTED THAT
AVERAGE COLLECTION PERIOD HAS LENGTHENED TO 297 DAYS} ^{(2005: 150 DAYS).}

^{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} ^{09/02/2001
AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER} ^{ITS
NAMESTYLE AS "DELTA DIAMONDS ASIA PTE LTD".}

^{ON
08/04/2004, SUBJECT CHANGED ITS NAMESTYLE OF "GEMIMPEX ASIA PTE.} ^LTD.".

^{SUBSEQUENTLY
ON 17/08/2007, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE} ^{OF
"AMDIA PTE. LTD.".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL
OF} ^{300,003 SHARES, OF A VALUE OF S$300,003}

^{PRINCIPAL
ACTIVITIES:}

^{SUBJECT
IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY}

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

^{1)
WHOLESALE OF JEWELLERY}

^{2)
WHOLESALE ON A FEE OR CONTRACT BASIS (EG COMMISSION AGENCIES)}

^{THE
COMPANY WAS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE} ^{CLASSIFICATION
OF: JEWELLERS-WHSLE}

^{DURING
THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL} ^{ACTIVITIES
ARE ENGAGED IN THE BUSINESS OF WHOLESALERS, IMPORTERS,} ^{EXPORTERS'
AGENT OF AND DEALERS IN ALL TYPES AND DESCRIPTIONS OF}

^{DIAMONDS,
GEMS JEWELRY, PRECIOUS STONE, SEMI-PRECIOUS STONES.}

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

^ACTIVITIES:

^{* TRADING OF DIAMONDS AND OTHER PRECIOUS
STONES}

^{PRODUCTS
OR SERVICES:}

^{* DIAMOND TOOLS - WHOLESALERS &
MANUFACTURERS}

^{* TOOLS: DIAMOND}

^{TERMS
OF PAYMENT:}

^{* TRADE AND OTHER RECEIVABLES: NOT AVAILABLE}

^{* TRADE AND OTHER PAYABLES : 30-60 DAYS TERM}

^{NO
OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT} ^{GRANTED BY
SUBJECT'S PERSONNEL}

^{REGISTERED
AND BUSINESS ADDRESS:}

^{545
ORCHARD ROAD}

^#12-05

^{FAR
EAST SHOPPING CENTRE}

^{SINGAPORE
238882}

^{DATE
OF CHANGE OF ADDRESS: 12/06/2001}

^{-
RENTED PREMISE}

^{-
PREMISE OWNED BY: AVISHAI MASHIAH (DIRECTOR/SHAREHOLDER)}

^{LORAINE
BABARA PETERSON}

^WEBSITE:
-

^{EMAIL : -}

MANAGEMENT

^{THE
DIRECTOR AT THE TIME OF THIS REPORT IS:}

^{1)
AVISHAI MASHIAH, AN ISRAELI}

^{-
BASED IN SINGAPORE}

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 6.0% IN 4Q 2007, SLOWER THAN THE 6.8% GROWTH IN 3Q 2007. RETAIL SALES FELL BY 2.5%, FOLLOWING A 1.5% GROWTH IN 3Q 2007.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 22.2% IN 4Q 2007 OVER 4Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 4.8%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF PETROLEUM AND PETROLEUM PRODUCTS (47.3%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (29.8%). OTHER WHOLESALE SEGMENTS THAT REPORTED DOUBLE-DIGIT GROWTH WERE WHOLESALING OF GENERAL WHOLESALE TRADE, HOUSEHOLD EQUIPMENT AND FURNITURE AND CHEMICALS AND CHEMICAL PRODUCTS.

ON THE OTHER HAND, WHOLESALE SEGMENT THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-35.8%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 1.6% IN 4Q 2007 OVER 4Q 2006. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE SLIGHTLY BY 0.2%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 4Q 2007 ROSE BY 7.1% OVER 3Q 2007. EXCLUDING PETROLEUM, DOMESTIC SALES CONTRACTED BY 2.9%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 4Q 2007 OVER PREVIOUS QUARTER. PETROLEUM AND PETROLEUM PRODUCTS EXPANDED BY 20.0%. GENERAL WHOLESALE TRADE AND INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO REGISTERED

DOUBLE-DIGIT GROWTH OVER PREVIOUS QUARTER.

ON THE OTHER HAND, SALES OF FOOD, BEVERAGES AND TOBACCO AND ELECTRONIC COMPONENTS FELL IN 4Q 2007 OVER 3Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 4Q 2007 ROSE BY 27.0%, IN COMPARISON TO 4Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 15.3%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (40.6%) PETROLEUM AND PETROLEUM PRODUCTS (39.9%) SHIP CHANDLERS AND BUNKERING (24.3%) INDUSTRIAL AND CONSTRUCTION MACHINERY (18.2%) CHEMICALS AND CHEMICAL PRODUCTS (16.4%) ELECTRONIC COMPONENTS (12.1%) TIMBER, PAINT AND CONSTRUCTION MATERIALS (11.1%).

ON THE OTHER HAND, OVERSEAS SALES OF TELECOMMUNICATIONS AND COMPUTERS FELL BY 2.8%

IN 4Q 2007 OVER 4Q 2006.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 11.5% IN 4Q 2007 OVER 4Q 2006.

EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 15.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 4Q 2007 ROSE BY 11.7% OVER 3Q 2007. EXCLUDING PETROLEUM, IT GREW BY 6.0%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 4Q 2007 WITH THE EXCEPTION OF THE ELECTRONIC COMPONENTS SECTOR. THOSE SECTORS THAT REGISTERED DOUBLE-DIGIT GROWTH WERE WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS, TELECOMMUNICATIONS AND COMPUTERS, INDUSTRIAL AND CONSTRUCTION MACHINERY AND CHEMICALS AND CHEMICAL PRODUCTS.

RETAIL TRADE

THE OVERALL RETAIL SALES CONTRACTED BY 2.5%, IN CONTRAST TO THE 1.5% GROWTH IN 3Q 2007. THE SECTOR THAT RECORDED THE LARGEST DECLINE WERE MOTOR VEHICLES, FOLLOWED BY PROVISION AND SUNDRY SHOPS, FOOD AND BEVERAGES, WATCHES AND JEWELLERY AND MEDICAL GOODS AND TOILETRIES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.2%, A DECLINE FROM THE 6.O% GROWTH IN 3Q 2007.

NEWS

SURPRISING DROP IN RETAIL SALES

RETAIL SALES FELL UNEXPECTEDLY IN FEBRUARY, THE FIRST TIME IN SEVEN MONTHS, AS INFLATION HIT 26 YEAR HIGHS AND WORRIES GREW ABOUT THE WORLD ECONOMY. SHOPS, SUPERMARKETS AND OTHER RETAILERS SAW REVENUES FELL 1.3% FROM A YEAR EARLIER, AS CAR SALES DECLINED 10.6% AND FOOD AND BEVERAGES SALES PLUNGED 21.8%.

THE OVERALL CONTRACTION BY THE SECTOR WOULD HAVE BEEN BIGGER IF NOT FOR MUCH HIGHER PRICES THIS YEAR. IN CONSTANT PRICES TERMS, SALES FELL 5.7%. THIS IS THE WORST READING SINCE THE 5.0% DECLINE IN MARCH 2007, IF ONE WERE TO IGNORE THE 2.0% CONTRACTION IN JULY THAT WAS DUE TO THE HIKE IN THE GOODS AND SERVICES TAX,” SAID HSBC ECONOMIST PRAKRITI SOFAT.

ANALYSTS SAID RISING LIVING COSTS AND UNCERTAINTY ABOUT THE ECONOMY WOULD AFFECT SINGAPORE CONSUMER’S SPENDING THIS YEAR. MANY, HOWEVER, REMAIN LARGELY OPTIMISTIC ABOUT THE DOMESTIC RETAIL SCENE, SAYING THE POOR FEBRUARY SHOWING COULD BE A STATISTICAL BLIP.

DOMESTIC DEMAND CONDITIONS REMAIN POSITIVE, HELPED BY THE GOVERNMENT WHICH IS GIVING CASH FROM LAST YEAR’S SURPLUS TO THE WHOLE POPULATION AND ISSUING FOOD VOUCHERS TO THE POOR. “LOW INTEREST RATES AND A HEALHY JOBS MARKET SHOULD KEEP SPENDING FIRM,” SAID HSBC’S MS SOFAT. SHE ADDED THAT FEBRUARY’S DECLINE WAS DUE LARGELY TO A HIGH BASE SET THE PREVIOUS YEAR AND PREDICTED THAT MARCH SALES WOULD BOUNCE BACK WITH A 15.0% SURGE. ALSO, IF COMPARED WITH JANUARY, FEBRUARY SALES ROSE 8.8% AFTER ADJUSTING FOR SEASONAL EFFECTS. THIS WAS THE STRONGEST PERFORMANCE IN FOUR YEARS, SHE SAID.

CIMB-GK ECONOMIST SONG SENG WUN SAID MUCH OF THE POOR PERFORMANCE CAME ON THE BACK OF WEAKER CAR SALES. EXCLUDING THOSE, RETAIL SALES WOULD HAVE RISEN 2.9%. CAR SALES HAVE BEEN HURT SINCE OCTOBER BY RISING CERTIFICATE OF ENTITLEMENT PRICES, CAUSED BY AN EXPECTED CUT IN QUOTAS FROM NEXT MONTH AND SURGING PUMP PRICES.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 4% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THE MAJORITY OF WHOLESALERS OF PETROLEUM AND PETROLEUM PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS, INDUSTRIAL MACHINERY AND EQUIPMENT AND COMPUTERS AND ACCESSORIES FORECAST BUSINESS OUTLOOK TO REMAIN THE SAME IN THE FIRST SIX MONTHS OF 2008 COMPARED WITH THE LAST SIX MONTHS IN 2007.

A NET WEIGHTED BALANCE OF 12% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING JUNE 2008. AS A RESULT OF THE REDUCED CERTIFICATE OF ENTITLEMENT (COE) QUOTA, MOTOR VEHICLES RETAILERS ARE ESPECIALLY CONCERNED WITH THE SALES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

THE STRAITS TIMES

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