Attachment 1

Report Update On	27^th August, 1999
Report on	PRODUCT & PRODUCE PTE LIMITED
Registered Office	261 Waterloo Street, #03-08, Singapore 180261
Tel. No.	733 8643
Fax No.	733 7948
E-Mail
Telex

Attachment 2

S U M M A R Y

Incorporated	14/07/1995	Chief Executive	Mr Khoo Cheng Lian
Registration No.	199504976M	Payments	Regular
Capital (GB£)	$100,000.00	Litigation	Clear
Sales (GB£)	$2,585,840.00	Reputation	Satisfactory
Net Worth (GB£)	$36,642.00	Auditors	Loke, Lum & Partners
No. of Employees	4	SSIC	50920
Credit Rating	B (See attachment 3)

All figures quoted in Local Currency unless otherwise stated

BUSINESS ADDRESS

20 Kramat Lane, #04-01, Singapore 228774

LEGAL STATUS & HISTORY

Subject was incorporated on 14 July 1995 as a limited exempt private company under its former name Afriquesing Trading Pte Ltd. It adopted its present style name Prodcut & Produce Pte Ltd on 12 February 1999.

Mr Khoo Cheng Lian is Subject's Managing Director and is responsible for its overall management, strategic planning and business developments. Further checks reveal that he has other business interests in Singapore. He acts as the director for:

a. Abani Trading Pte Ltd

b. Eagleair Travel & Tours Pte Ltd

Exempt private companies do not have other companies as shareholders and do not have more than 20 individuals as shareholders. Exempt private companies may make loans to its directors. Also, the companies need not file their accounts. However, they must still submit their annual returns to the Registry of Companies and Businesses and a company director, secretary and auditor must sign a certificate to confirm that:-

· The company is an exempt private company;

· The company is able to meet its liabilities;

· The audited accounts have been tabled before shareholders at its Annual General Meeting.

The principal activity of Subject is to carry on as general importers and exporters. There have been no significant changes in the nature of such activities during the financial period.

Investigations revealed that Subject is presently operating from 20 Kramat Lane 04-10 Singapore 228774. This premise consists of Subject's office where all business and administrative activities are carried out. It is known that Subject operates with a staff strength of 4 employees.

To date, Subject's authorised and paid up capital stand at $100,000 and $50,000 respectively. Loke, Lum & Partners has been appointed as Subject's authorised auditors cum certified public accountants.

SHAREHOLDERS

Name	Nationality	Ord. Share ($)	V/Share ($)	Currency
Khoo Cheng Lian	Singaporean	1	1	Singapore Dollar
Krishnan Suppaiah	Singaporean	1	1	Singapore Dollar
Suppiah S/O Krishnan	Singaporean	49998	1	Singapore Dollar

DIRECTORS

Khoo Cheng Lian 106 Jurong East Street 13 #19-218, Singapore 600106	Date Of Appt : 16/05/1997 Nationality : Singaporean Ic/Passport : S0096949d
Lum Khai Hou 41 Jalan Chempaka Kuning Singapore 489079 (Secretary)	Date Of Appt : 01/07/1997 Nationality : Singaporean Ic/Passport : S1139590b
Krishnan Suppaiah 210 Boon Lay Place #03-121, Singapore 640210	Date Of Appt : 16/05/1997 Nationality : Singaporean Ic/Passport : S7513056b

OPERATION

The principal activity of Subject is to carry on as general importers and exporters.

An interview with Subject revealed that it is a wholesaler of various types of spices like:

Betelnuts

Caraway Seeds

Cinnamon

Chillies

Coriander Seeds

Cloves

Galangal Root

Nutmegs

Black Pepper

White Pepper

Subject revealed that it imports all its spices from countries such as:

ñ China

ñ India

In addition, it exports to:

P Taiwan

P Malaysia

P Indonesia

P Thailand

Investigations revealed that Subject acts as a distributor to other spice traders and it does not cater to retailers, restaurants nor departmental stores.

Modes of payment vary with the nature of the transaction. Subject transacts on a cash basis for its new clients but subsequent credit terms of 30 days may be extended on grounds of its customers’ familiarity and creditability in payment.

Subject transacts in US Dollar for its overseas clients while local customers pay in Singapore Dollar.

No other information was revealed as Subject was reluctant to disclose any more details.

FINANCE

FINANCIAL YEAR	30/06/1997	30/06/1998
Turnover	$0.00	$2,585,840.00
Profit/(Loss) Before Tax	($2,160.00)	$59,510.00
Profit/(Loss) After Tax	($2,160.00)	$44,510.00
Total Assets	$2,702.00	$207,934.00
Current	$2.00	$207,934.00
Fixed and Others	$2,700.00	$0.00
Total Liabilities	$10,570.00	$171,292.00
Current	$10,570.00	$171,292.00
Long-Term	$0.00	$0.00
Shareholders Funds	($7,868.00)	$36,642.00
Paid-up Capital	$2.00	$2.00
Reserves	$0.00	$36,640.00
Accumulated Loss	$7,870.00	$0.00
Minority Interest	$0.00	$0.00

FINANCIAL RATIOS

FINANCIAL YEAR END	30/061997	30/06/1998
EARNING CAPACITY
Rate of net profit on sales (%)	NIL	1.72
Return on Investment (%)	NIL	21.41
Return on Equity	NIL	121.47
FINANCIAL STABILITY
Current/Working capital ratio	0.00	1.21
Proprietary ratio (%)	NIL	17.62
Total-debt-to-equity-ratio	-1.34	4.67
Quick Ratio	0.00	1.12
ASSET MANAGEMENT
Average collection period (Days)	NIL	14
Total assets turnover	NIL	12.44

PROFITABLILITY

· Turnover represents invoiced net trading sales and services rendered after allowance for goods returned and trade discounts. It stood at $2,585,840 for the financial year (FY) ended 30 June 1998.

· Subject managed to edge back into the black to register a net profit of $44,510 (FY97: a loss of $2,160) in 1998.

· It also incurred bank interest of $7,758 (FY97: $NIL) and exchange loss of $134,831 (FY97: $NIL) in 1998.

· Its rate of net profit on sale stood at 1.72 per cent in 1998. This indicates that it was able to book in $0.0172 of profit for every dollar of sales.

LIQUIDITY

· Current ratio stood at 1.21 times in FY98. This means that Subject had $1.21 of current assets for every dollar of current liability incurred.

· Trade debtors made up the greatest portion of its total current assets. It stood at $97,759 in 1998, representing 47.01 per cent of its total current assets.

· Cash and bank balances stood at $34,535 in 1998 while stocks stood at $15,390.

LEVERAGE

· Subject’s trade creditors represented a significant portion of its total liabilities. It stood at $153,900 in 1998, representing 89.85 per cent of total liabilities. This translates into a payment period of 22 days.

· Accruals rose to $2,392 in 1998 (FY97: $820)

· Subject did not experience any amount due to a director for 1998 (FY97: $9,750).

· Total debt to equity ratio stood at 4.67 times. This indicates that Subject required additional external financing of $4.67 for every dollar injected into its operations.

SHAREHOLDERS

· No dividend has been paid or declared or recommended since the date of incorporation.

· As at 30 June 1998, Subject’s net worth stood at $36,642 (FY97: negative $7,868).

BANKERS

STANDARD CHARTERED BANK

BAN HENG LEE BHD

Subject enjoys a normal banking routine with its bankers. To date, there has been no bank charge registered against Subject.

LITIGATION

CLEAR

ECONOMIC OUTLOOK

Net investments in the manufacturing sector grew 13 per cent year-on-year in Q2 from the $1.7 billion figure registered in Q1.

Most of the domestic net investment was in the electronics and engineering industries. Net domestic investment for Q2 jumped by 247 per cent to stand at a total of $708 million.

On the other hand, foreign investment declined by 9 per cent quarter-on-quarter to $1.4 billion making up around 66.67 per cent of total investment commitments.

The Singapore government raised its growth forecast for 1999 to 4-5 per cent from its previous forecast of 0-2 per cent. This optimism is largely due to the improvement in the manufacturing and financial and business services sectors. Apart from the construction sector, other sectors like commerce, transport and communications are looking up.

Furthermore, the external environment is also picking up with total entrepot trade registering close to 8 per cent. Total exports to Malaysia and Japan are up while the outlook for the global semi-conductors industry is positive this year.

However, we cannot ignore the fact that these “recoveries” are only true for certain sectors. For example, out of the other eight sub-sectors, six recorded production declines in Q2. These include transport equipment; machinery and equipment; fabricated metals; petroleum products; food, beverages and tobacco; and electrical machinery.

As for the very encouraging 15 per cent growth figure for financial services, it was mainly due to the increased trading activities in the stock market. Market volume on the Stock Exchange of Singapore leaped by 587 per cent during April-June while values were up 359 per cent.

Keeping in mind these factors and the global uncertainties, it is still way too early to declare that the economy has recovered.

SUMMARY

Based on Subject’s Score Factor, Subject has a score of 27 points and falls within the credit rating of B. The proposed credit line is SMALL.

END OF REPORT

Attachment 3

SCORE SHEET

SCORE	CREDIT 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. Maybe drawn to slightly difficult position as unfavourable conditions arise. Minimal assurance for timely payment on interest and principal sums	Moderate
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively limited or considered not known. Capability to pay both interest and principal sums is doubtful	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

Attachment 4

ACKNOWLEDGEMENT

Dear Sir/Madam,

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Further Comments/Suggestion :

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Company’s Stamp & Signature

September 2, 1999

Mr. Ajay Mehta

Laxmichand Dayabhai (Export) Company

Mumbai

Dear Mr. Mehta :

Kindly refer to our report on Product & Produce Pte Limited, Singapore.

Please be informed that the company’s paid-up capital is S$ 2.00, as confirmed by counterpart in Singapore.

Further, the reserves of the company represents Revenue Reserves. There was no further breakdown.

Hope the above would have answered your queries.

Sincerely yours,

for Mira Inform Private Limited

Minesh Gandhi