MIRA INFORM REPORT

Report Date :

08.10.2008

IDENTIFICATION DETAILS

Name :	^AMI GEMS PTE LTD
Registered Office :	1 People's Park Complex #02-119A 059108
Country :	Singapore
Date of Incorporation :	^27.12.1993
Com. Reg. No.:	^199308542K
Legal Form :	^Exempt Pte Ltd
Line of Business :	^Wholesale of Jewellery; Manufacturing of Jewellery

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

^{AMI GEMS PTE LTD}

Line Of Business 

^{WHOLESALE OF JEWELLERY; MANUFACTURING OF JEWELLERY}

Parent Company

^-

Financial Elements

^{Sales : N.A.}

^{Networth : N.A.}

^{Paid-Up Capital : S$ 300,000}

^{Net result : N.A.}

^{Net Margin(%) : N.A.}

^{Return on Equity(%) : N.A.}

^{Leverage Ratio : N.A.}

COMPANY IDENTIFICATION

^{Subject Company : AMI GEMS PTE LTD}

^{Former Name : -}

^{Business Address : 1 PEOPLE'S PARK COMPLEX}

^#02-119A

^{Town : SINGAPORE}

^{Postcode : 059108}

^{Country : Singapore}

^{Telephone : 6736 4273}

^{Fax : 6557 0178}

^{ROC Number : 199308542K}

^{Reg. Town : -}

SUMMARY

^{All amounts in this report are in : SGD unless otherwise stated}

^{Legal Form : Exempt Pte Ltd}

^{Date Inc. : 27/12/1993}

^{Previous Legal Form : -}

^{Summary year : -}

^{Sales : -}

^{Networth : -}

^{Capital : -}

^{Paid-Up Capita l : 300,000}

^{Employees : 5}

^{Net result : -}

^{Share value : 1}

^{Auditor : ONN PING LAN & COMPANY}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARES CURRENCY AMOUNT}

^{ISSUED ORDINARY 300,000 SGD 300,000.00}

^{PAID-UP ORDINARY - SGD 300,000.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 27/12/1993}

PRINCIPAL(S)

^{SHENOY RAVINDRANATH MUKUNDA S2737533B Director}

DIRECTOR(S)

^{LEE KEE LIANG S1242426D Company Secretary}

^{Appointed on : 27/12/1993}

^{Street : 111 CLEMENTI STREET 13}

^#02-32

^{Town : SINGAPORE}

^{Postcode : 120111}

^{Country : Singapore}

^{SHENOY RAVINDRANATH MUKUNDA S2737533B Director}

^{Appointed on : 27/12/1993}

^{Street : 53 FIDELIO STREET}

^{OPERA ESTATE}

^{Town : SINGAPORE}

^{Postcode : 458441}

^{Country : Singapore}

^{SHENOY SHOBHA RAVINDRANATH S2737534J Director}

^{Appointed on : 27/07/2006}

^{Street : 53 FIDELIO STREET}

^{OPERA ESTATE}

^{Town : SINGAPORE}

^{Postcode : 458441}

^{Country : Singapore}

ACTIVITY(IES)

^{JEWELLERS - MFRS Code: 12260}

^{JEWELLERS - WHSLE Code: 12280}

^{BASED ON ACRA'S RECORD}

^{1) MANUFACTURE OF JEWELLERY EXCEPT COSTUME JEWELLERY;}

^{CUSTOMISED JEWELLERY, DESIGN HOUSE OF GEMS AND JEWELLERY AND}

^{MANUFACTURING OF JEWELLERY}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{SHENOY RAVINDRANATH MUKUNDA 180,000 Private Person}

^{Street : 53 FIDELIO STREET}

^{OPERA ESTATE}

^{Town : SINGAPORE}

^{Postcode : 458441}

^{Country : Singapore}

^{SHENOY SHOBHA RAVINDRANATH 120,000 Private Person}

^{Street : 53 FIDELIO STREET}

^{OPERA ESTATE}

^{Town : SINGAPORE}

^{Postcode : 458441}

^{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}

FINANCIAL COMMENTS

^{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 27/12/1993 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "AMI GEMS PTE LTD".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 300,000 SHARES, OF A VALUE OF S$300,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{1) MANUFACTURE OF JEWELLERY EXCEPT COSTUME JEWELLERY;}

^{CUSTOMISED JEWELLERY, DESIGN HOUSE OF GEMS AND JEWELLERY AND}

^{RELATED ACTIVITIES}

^{2) WHOLESALE OF JEWELLERY;}

^{MANUFACTURING OF JEWELLERY}

^{THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: DIZMONDS - WHOLESALING.}

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

^BACKGROUND:

^{SUBJECT WAS LAUNCHED IN 1993. WE ARE PRIMARILY BASED IN SINGAPORE, SOUTH EAST ASIA AND SUPPLY OUR RANGE OF LOOSE DIAMONDS & JEWELRY PIECES TO INDIVIDUAL CUSTOMERS, AS WELL AS RETAILERS FROM VARIOUS COUNTRIES, SUCH AS USA, AUSTRALIA AND THE ASIA PACIFIC REGION.}

^ACTIVITIES:

^{* IMPORTER & EXPORTER OF DIAMONDS, MADE TO ORDER JEWELLERY ETC}

^{PRODUCTS DEALING:}

^{* DIAMONDS}

^{* GOLD JEWELLERY}

^{* PLATINUM JEWELLERY}

^{EXPORT COUNTRIES:}

^{* INDONESIA}

^{* AUSTRALIA}

^{NUMBER OF EMPLOYEES:}

^{* 2007: 5}

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

^{REGISTERED ADDRESS:}

^{151 CHIN SWEE ROAD}

^#03-28

^{MANHATTAN HOUSE}

^{SINGAPORE 169876}

^{DATE OF CHANGE OF ADDRESS: 17/09/2004}

^{BUSINESS ADDRESS:}

^{1 PEOPLE'S PARK COMPLEX}

^#02-119A

^{SINGAPORE 059108}

^{- PROPERTY RECORD WAS NOT AVAILABLE}

^WEBSITE:

^{http://amigems.org}

^EMAIL:

^{info@ami-gems.com}

MANAGEMENT

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

^{1) SHENOY RAVINDRANATH MUKUNDA, A SINGAPORE PERMANENT RESIDENT}

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

^{2) SHENOY SHOBHA RAVINDRANATH, A SINGAPORE PERMANENT RESIDENT}

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

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME : SHENOY RAVINDRANATH MUKUNDA}

^{ADVERSE REPORT AGAINST DIRECTOR : NOT AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP : NIL}

^{ANNUAL VALUE : NA}

^{CO-OWNER (S) : NA}

^{DIRECTOR'S NAME : SHENOY SHOBHA RAVINDRANATH}

^{ADVERSE REPORT AGAINST DIRECTOR : NOT AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP : NIL}

^{ANNUAL VALUE : NA}

^{CO-OWNER (S) : NA}

^{* 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 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.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

THE SINGAPORE ECONOMY GREW AT A HEALTHY PACE OF 6.7% IN 1Q 2008. ON AN ANNUALISED QUARTER-ON-QUARTER BASIS, GROWTH ROSE BY 14.6%, IN CONTRAST TO THE 4.8% DECLINE IN THE PREVIOUS QUARTER.

THE MANUFACTURING SECTOR ROSE BY 12.4% IN 1Q 2008, HIGHER THAN THE 0.2% IN 4Q 2007. THE GROWTH WAS MAINLY DRIVEN BY BIOMEDICAL MANUFACTURING.

ELECTRONICS, TRANSPORT ENGINEERING AND CHEMICALS SECTOR GREW AT A SLOWER PACE WHILE PRECISION ENGINEERING CONTRACTED.

THE FINANCIAL SERVICES SECTOR ROSE BY A SMALLER 13% IN 1Q 2008, FOLLOWING A 16% GAIN IN 4Q 2007. GROWTH WAS ACROSS THE BOARD, SUPPORTED BY ROBUST EXPANSIONS IN BOTH THE DOMESTIC AND OFFSHORE BANKING SEGMENTS.

HOWEVER, THE DOMESTIC STOCK MARKET FARED POORLY DUE TO CONCERNS OVER THE TURMOIL IN GLOBAL FINANCIAL MARKET. COMMERCIAL BANK LOANS REGISTERED THE HIGHEST GROWTH, WITH FIRM GAINS ACROSS MOST NON-BANK CUSTOMERS, PARTICULARLY BUILDING AND CONSTRUCTION.

THE CONSTRUCTION SECTOR RECORDED HIGH GROWTH, RISING BY 15%, FOLLOWING THE ROBUST 24% GROWTH IN 4Q 2007.

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 5.2% IN 1Q 2008, SLOWER THAN THE 6.0% GROWTH IN 4Q 2007. NON-OIL RE-EXPORTS GREW BY 2.0% IN 1Q 2008, IN CONTRAST TO THE 1.2% DECLINE IN 4Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY A MODERATE 1.4% IN 1Q 2008, FOLLOWING A HIGHER 9.9% GROWTH IN 4Q 2007.

THE TRANSPORT AND STORAGE SECTOR ROSE BY 5.5% IN 1Q 2008, MARGINALLY HIGHER THAN 5.4% IN 4Q 2007.

THE HOTELS AND RESTAURANTS SECTOR GREW BY A SLIGHTLY SMALLER 2.4% IN 1Q 2008, FOLLOWING THE 2.5% GROWTH IN 4Q 2007.

THE INFORMATION AND COMMUNICATIONS SECTOR ROSE 6.8% IN 1Q 2008, HIGHER THAN THE 6.1% IN 4Q 2007.

THE BUSINESS SERVICES SECTOR EXPANDED BY 8.3%, SLIGHTLY SLOWER THAN THE 8.7% GAIN IN 4Q 2007. GROWTH WAS LED BY REAL ESTATE, AND ARCHITECTURAL AND ENGINEERING SEGMENTS. OFFICE RENTS IN THE CENTRAL REGION CONTINUED TO RISE AT A MORE MODERATE PACE. THE OCCUPANCY RATE FOR OFFICE SPACE EASED SLIGHTLY BUT SUPPLY REMAINED TIGHT.

NEWS

BUMPY YEAR AHEAD, SAYS PM

AS EXPECTED, THE PRIME MINISTER’S NATIONAL DAY MESSAGE REFLECTED, AS HE SAID IN HIS VERY OPENING LINE, A SOMEWHAT GUARDED MOOD.

MR LEE HSIEN LOONG GAVE A SET OF STATISTICS WHICH SHOWED THAT SINGAPORE, ALTHOUGH IT MANAGED TO HOLD UP FOR A WHILE, IS SHOWING THE EFFECT OF THE STRAIN RUNNING THROUGH THE UNITED STATES ECONOMY, WHICH IS BEING SQUEEZED BY A HOUSING CRSIS, A FINANCIAL SYSTEM UNDER PRESSURE AND A CONSUMER WHO IS SPENDING LESS.

GROWTH FOR THE FIRST HALF OF THE YEAR WAS 4.5%, A DROP FROM THE 7.6% GROWTH OVER THE SAME PERIOD LAST YEAR. AND FOR THE WHOLE YEAR, THE GOVERNMENT HAS REVISED ITS GROWTH FORECAST DOWN TO BETWEEN 4 AND 5%, FROM THE EARLIER RANGE BETWEEN 4 AND 6%. IN COMPARISON, SINGAPORE’S ECONOMY GREW 7.5% LAST YRAR.

MR LEE IS NOT ONLY WORRIED ABOUT THE SITUATION IN THE US. ASIA, AND MORE IMPORTANTLY, ASEAN ARE VERY MUCH ON HIS RADAR SCREEN.

ECHOING THE SAME SENTIMENTS IN A SPEECH HE GAVE AT THE ASEAN MINISTERIAL MEETING LAST MONTH, HE SAID: “IN SOUTH-EAST ASIA, ASEAN HAS BECOME LESS PROMINENT ON THE RADAR SCREEN OF INVESTORS, WHO ARE MORE FOCUSED ON OPPORTUNITIES IN CHINA AND INDIA.

“SEVERAL ASEAN COUNTRIES ARE PRE-OCCUPIED WITH DOMESTIC, ECONOMIC AND POLITICAL PROBLEMS. HOWEVER, ALL ASEAN COUNTRIES KNOW THAT WE MUST WORK TOGETHER RESOLUTEY AS A GROUP.

“SINGAPORE WILL DO OUR PART. BUT WE MUST ALSO MAINTAIN OUR REPUTATION IN A TURBULENT REGION AS AN ECONOMY THAT IS COMPETITIVE, A SOCIETY THAT IS COHESIVE AND A GOVERNMENT THAT IS HONEST AND COMPETENT.

LOOKING A LITTLE AHEAD, MR LEE SAID:”THE DIFFICULTIES WILL PROBABLY DRAG ON WELL INTO NEXT YEAR BEFORE GETTING BETTER......WE MUST THEREFORE PREPARE OURSELVES FOR A BUMPY YEAR AHEAD.

INFLATION IS AN ISSUE, “WHICH I AM SURE IS AT THE TOP OF YOUR MINDS”. AND SOME GOVERNMENT DECISIONS SUCH AS GST AND ERP INCREASES DO RAISE THE COST OF LIVING. BUT THE PRIME MINISTER SAID, THEY ARE ESSENTIAL,”OTHERWISE WE WOULD NOT DO THEM: THE GST ALLOWS US TO FINANCE WORKFARE AND OTHER SCHEMES TO HELP LOWER INCOME SINGAPOREANS OVER THE LONG-TERM AND THE ERP KEEPS OUR ROADS FREE-FLOWING.

IN ONE WORD, PEOPLE, BOTH IN QUALITY AND QUANTITY. “TO UPGRADE OUR ECONOMY, WE MUST INVEST IN OUR PEOPLE, ESPECIALLY THROUGH EDUCATION,”HE SAID. POLYTECHNICS AND ITES ARE BEING IMPROVED. UNIVERSITY PLACES ARE BEING EXPANDED. THE FOURTH UNIVERSITY WILL BE UP AND READY IN CHANGI IN THREE YEARS.

AND FOR WHAT IS LIKELY TO BE THE HOT TOPIC IN THE MONTHS TO COME, MR LEE SAID:”…WE ALSO NEED ENOUGH BABIES TO REPLACE OURSELVES. “WE HAVE TO TAKE THIS SERIOUSLY. MARRIAGE AND PARENTHOOD ARE PERSONAL DECISIONS. BUT WE CAN CREATE AN ENVIROMENT WHERE SINGAPOREANS SEE THEM AS A NATURAL AND IMPORTANT PART OF LIFE, AND WHERE YOUNG PEOPLE GET SUPPORT IN STARTING FAMILIES.

THE PRIME MINISTER ENDED ON A SOMEWHAT UPBEAT MOOD: “DESPITE THE UNCERTAINTIES IN OUR REGION AND IN THE WORLD ECONOMY, SINGAPORE IS IN A STRONG POSITION. IN GOOD TIMES AND BAD, WE HAVE STAYED UNITED, LOOKED OVER THE HORIZON AND MOVED CAREFULLY, BUT RESOLUTELY, FORWARD.

OUTLOOK

THE COMPOSITE LEADING INDEX (CLI) FELL 2.6% IN 1Q 2008, FOLLOWING THE 0.8% GAIN IN 4Q 2007. OF THE NINE COMPONENTS WITHIN THE INDEX, FIVE COMPONENTS RECORDED DECLINES WHILE FOUR COMPONENTS IMPROVED. THE FIVE INDICATORS THAT REGISTERED DECLINES ARE THE STOCK PRICE, US PURCHASING MANAGER’S INDEX, WHOLESALE TRADE, STOCK OF FINISHED GOODS AND DOMESTIC LIQUIDITY.

IN THE LAST REVIEW IN FEBRUARY 2008, THE MINISTRY OF TRADE AND INDUSTRY LOWERED THE 2008 GDP GROWTH FORECAST FROM 4.5-6.5% TO 4.0-6.0%, TAKING INTO ACCOUNT THE DOWNSIDE RISKS OF A US DOWNTURN. SINCE THEN, THE SLOWDOWN IN THE MAJOR ECONOMIES HAS PANNED OUT LARGELY AS EXPECTED. THE IMF AND MARKET CONSENSUS HAVE LOWERED THEIR ECONOMIC FORECASTS ACROSS THE BOARD BUT ASIAN ECONOMIES SUCH AS CHINA AND INDIA ARE FORECASTED TO RECORD STRONG GROWTH FOR 2008. THERE IS ALSO A RESPITE IN US FINANCIAL MARKETS – THE MAIN SOURCE OF DOWNSIDE RISK TO THE FORECAST – WITH THE RESCUE OF BEAR STEARNS BY THE FEDERAL RESERVE IN MARCH. WHILST CREDIT CONDITIONS WILL REMAIN WEAK AND DRAG THE REAL ECONOMY, THERE IS GREATER CONFIDENCE THAT TIMELY AND RESOLUTE POLICY ACTIONS WILL BE TAKEN AS NEEDED TO FORESTALL A FINANCIAL MELTDOWN.

NONETHELESS, THERE REMAINS THE DOWNSIDE RISK OF A DEEPER THAN EXPECTED US RECESSION DUE TO FINANCIAL TURBULENCE OR SHARP DECLINES IN ASSET VALUES. THERE COULD BE FURTHER WRITE-DOWNS AND LOSSES IN BANKING INSTITUTIONS WHICH COULD SET OFF ANOTHER ROUND OF INCREASED RISK AVERSION. GLOBAL DEMAND COULD SLOW FURTHER AS THE FINANCIAL MARKETS’ TURBULENCE TRANSLATE INTO HIGHER COSTS OF FUNDS AND LOWER INCOMES.

IN THE FINANCIAL SERVICES INDUSTRY, MAJORITY OF THE BANKS AND FINANCE COMPANIES FORECAST BUSINESS OUTLOOK TO REMAIN STABLE IN THE COMING MONTHS. HOWEVER, STOCK, SHARE AND BOND BROKERS, FUND MANAGERS AND INSURANCE COMPANIES ARE LESS UPBEAT ABOUT THE BUSINESS OUTLOOK IN THE MONTHS AHEAD.

IN THE REAL ESTATE INDUSTRY, A NET WEIGHTED BALANCE OF 9% OF FIRMS,

EXPECT BUSINESS TO BE BRISK FOR THE COMING MONTHS.

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 9% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. IT APPLIES TO THOSE IN THE TROPICAL PRODUCE, WEARING APPAREL AND FOOTWEAR, AND INDUSTRIAL MACHINERY AND EQUIPMENT SECTORS.

A NET WEIGHTED BALANCE OF 29% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING SEPTEMBER 2008. SUPERMARKETS AND RETAILERS OF JEWELLERY AND WATCHES FORECAST SLOWER BUSINESS AFTER THE FESTIVE PERIOD. AS A RESULT OF THE REDUCED CERTIFICATE OF ENTITLEMENT (COE) QUOTA, MOTOR VEHICLES RETAILERS CONTINUE TO EXPRESS THEIR CONCERN.

IN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 9% OF FIRMS FORECASTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE COMING MONTHS.

IN THE SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 23% OF FIRMS,

EXPECT BUSINESS TO BE BRISK FOR THE COMING MONTHS WHILE A WEIGHTED 20% OF FIRMS PROJECTS LESS FAVOURABLE BUSINESS CONDITIONS. MAJORITY OF THE FIRMS (A WEIGHTED 57%) EXPECT BUSINESS ACTIVITIES TO REMAIN AT SIMILAR LEVELS FOR THE COMING MONTHS. THIS RESULTS IN A NET WEIGHTED BALANCE OF 3% OF FIRMS EXPECTING A POSITIVE OUTLOOK. THIS MAGNITUDE IS SMALLER THAN

THE NET WEIGHTED BALANCE OF 22% REGISTERED IN THE SAME PERIOD FOR 2007.

HOTELIERS REMAIN BULLISH ON BUSINESS CONDITIONS IN THE MONTHS AHEAD, WITH A NET WEIGHTED BALANCE OF 69% OF HOTELIERS EXPECTING THEIR BUSINESSES TO RISE IN ANTICIPATION OF THE POSITIVE SENTIMENTS IN THE TOURISM INDUSTRY AND UPCOMING MAJOR EVENTS IN SINGAPORE SUCH AS COMMUNICASIA 2008 AND THE FORMULA ONE GRAND PRIX. IN THE CATERING TRADE INDUSTRY, BUSINESS CONDITIONS ARE EXPECTED TO BE STABLE.

IN THE INFORMATION AND COMMUNICATIONS INDUSTRY, A NET WEIGHTED BALANCE OF 23% OF FIRMS PREDICTS BETTER BUSINESS, IN PARTICULAR THOSE ENGAGED IN MOTION PICTURE AND VIDEO, RADIO AND TELEVISION, SOUND RECORDING AND BROADCASTING ACTIVITIES.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 7% OF FIRMS EXPECTS POSITIVE SENTIMENTS. THESE INCLUDE THOSE ENGAGED IN PROVIDING ADVERTISING SERVICES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

TODAY

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.48.72
UK Pound	1	Rs.82.17
Euro	1	Rs.65.90

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