MIRA INFORM REPORT

Report Date :

20.06.2007

IDENTIFICATION DETAILS

Name :	NUTEK PRIVATE LIMITED

Registered Office :	39 Joo Koon Circle, Singapore – 629105

Country :	Singapore

Financials (as on) :	30.06.2006

Date of Incorporation :	03/10/1989

Com. Reg. No.:	198904254M

Legal Form :	Exempt Pte Ltd

Line of Business :	Design, Fabrication and Sales of Industrial Machinery and Equipment

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

NUTEK PRIVATE LIMITED

Line Of Business

DESIGN, FABRICATION AND SALES OF INDUSTRIAL MACHINERY AND EQUIPMENT.

Parent Company

Financial Elements

FY 2006

GROUP

Sales : S$41,810,136

Networth : S$21,306,824

Paid-Up Capital : S$491,150

Net result : S$5,954,532

Net Margin(%) : 14.24

Return on Equity(%) : 27.95

Leverage Ratio : 0.67

COMPANY IDENTIFICATION

^{Subject Company :}^{NUTEK PRIVATE LIMITED}

^{Former Name :}^-

^{Business Address :}^{39 JOO KOON CIRCLE}

^{Town :
SINGAPORE}

^{Postcode :}⁶²⁹¹⁰⁵

^{County :
-}

^{Country :
Singapore}

^{Telephone :}^{6862 0255}

^{Fax :}^{6862 0040}

^{ROC Number :}^198904254M

^Reg.^Town ^{: -}

SUMMARY

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

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

^{Date Inc. :}^03/10/1989

^{Previous Legal
Form}^:
-

^{Summary year :}^30/06/2006

^{Sales :}^41,810,136

^{Networth :}^21,306,824

^{Capital :}^-

^{Paid-Up Capital :}^491,150

^{Employees :
170}

^{Net result :}^5,954,532

^{Share value :
1}

^{Auditor :}^KPMG

REFERENCES

^{Litigation :
No}

^{Company status : TRADING}

^{Started :}^03/10/1989

PRINCIPAL(S)

^{JONG CHOON @ YONG
CHOON S2549197A Managing Director}

DIRECTOR(S)

^{JONG CHOON @ YONG
CHOON S2549197A Managing Director}

^{Appointed on : 11/01/1990}

^{Street : 5 PANDAN
VALLEY}

^#06-702

^{Town : SINGAPORE}

^{Postcode : 597629}

^{Country : Singapore}

^{LIM SHENG SEAW @
LIM CHENG FIE 3856184 Director}

^{Appointed on : 11/01/1990}

^{Street : 10 LORONG
KEMARIS 6,}

^{BUKIT BANDARAYA}

^{Town : KUALA LUMPUR}

^{Postcode : 59100}

^{Country : Malaysia}

^{INDERPAL
SINGH S1805301B Company Secretary}

^{Appointed on : 16/02/2001}

^{Street : 142 CACTUS ROAD}

^{SELETAR GARDEN}

^{Town : SINGAPORE}

^{Postcode : 809648}

^{Country : Singapore}

^{YEO LIU PO S1618425Z Director}

^{Appointed on : 15/11/2000}

^{Street : 956 DUNEARN ROAD}

^#01-16

^GARDENVISTA

^{Town : SINGAPORE}

^{Postcode : 589484}

^{Country : Singapore}

^{YEO LIU PO
S1618425Z Manager}

^{Appointed on : 15/11/2000}

^{Street : 956 DUNEARN ROAD}

^#01-16

^GARDENVISTA

^{Town : SINGAPORE}

^{Postcode : 589484}

^{Country : Singapore}

^{JONG CHOON @ YONG
CHOON S2549197A Director}

^{Appointed on : 03/10/1989}

^{Street : 5 PANDAN
VALLEY}

^#06-702

^{Town : SINGAPORE}

^{Postcode : 597629}

^{Country : Singapore}

^{LIM CHENG
SANG 460608-10- Alternate Director}

^{Appointed on : 15/08/2006}

^{Street : LOT 6, JLN 18,}

^{SELAYANG BARU,}

^{BATU CAVES}

^{Town :
SELANGOR}

^{Postcode : 68100}

^{Country : Malaysia}

FORMER DIRECTOR(S)

^{LIM THIN KONG
FRANCIS S1835761E}

^{LIM CHENG
JEEN 4786817}

^{LIM SWEE NEO S0140492Z}

ACTIVITY(IES)

^{MACHINERY Code: 13260}

^{MACHINERY -
SPECIALLY DESIGNED Code: 13270}

^{ELECTRIC
CONTRACTORS Code: 7370}

^{BASED ON ACRA'S RECORD AS
AT 15/06/2007}

^{1) MANUFACTURE OF
TELECOMMUNICATIONS APPARATUS (EG PBX EQUIPMENT, TELEPHONES EXCEPT CELLULAR)}

^{ACTIVITIES STATED
IN FINANCIAL STATEMENTS:}

^{DESIGN,
FABRICATION AND SALES OF INDUSTRIAL MACHINERY AND EQUIPMENT.}

CHARGES

^{Date :
07/04/2001}

^{Comments : CHARGE NO: 200101632}

^{AMOUNT SECURED: 0.00 AND ALL
MONIES OWING}

^{CHARGEE(S): THE DEVELOPMENT BANK OF SINGAPORE
LTD}

^{Date :
06/06/1998 Amount: 630,000}

^{Comments : CHARGE NO: 199802855}

^{AMOUNT SECURED: S$630,000.00 AND
ALL MONIES OWING}

^{CHARGEE(S): THE DEVELOPMENT BANK OF SINGAPORE
LIMITED}

^{Date :
07/10/1993}

^{Comments : CHARGE NO: 9304590}

^{AMOUNT SECURED: 0.00 AND ALL
MONIES OWING}

^{CHARGEE(S): THE DEVELOPMENT BANK OF SINGAPORE
LIMITED}

PREMISES/PROPERTY INFORMATIONS

^{Date :
20/06/2007}

^{Tax rate : 10}

^{Site Address : 39
JOO KOON CIRCLE}

^{NUTEK BUILDING}

^{Town : SINGAPORE}

^{Postcode : 629105}

^{Country : Singapore}

^{Annual Value : 832,000}

* TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

* TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER/OWNED BY COMPANY.

* FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

* 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.

BANKERS

^{DBS BANK LTD.}

SHAREHOLDERS(S)

^{JONG CHOON @ YONG
CHOON
243,119 Private Person}

^{Street : 5 PANDAN
VALLEY}

^#06-702

^{Town : SINGAPORE}

^{Postcode : 597629}

^{Country : Singapore}

^{YEO LIU PO
14,736 Private Person}

^{Street : 956 DUNEARN ROAD}

^#01-16

^GARDENVISTA

^{Town : SINGAPORE}

^{Postcode : 589484}

^{Country : Singapore}

^{METAL RECLAMATION
(INDUSTRIES) SDN.
233,295 Company}

^{Street : 22-2
JALAN TUN SAMBANTHAN 3}

^{Town : KUALA LUMPUR}

^{Postcode : 50470}

^{Country : Malaysia}

FORMER SHAREHOLDER(S)

^{LIM SHENG SEAW @
LIM CHENG FIE
233,295}

SUBSIDIARY(IES)

^{NUTEK AMERICAS INC}

^{NUTEK (CHINA) LIMITED}

^{NUTEK EQUIPMENT (SHANGHAI) PTE LTD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality :
AVERAGE}

^{Liquidity : SUFFICIANT}

^{Payments : REGULAR}

^{Trend :
UPWARD}

^{Financial
Situation : AVERAGE}

FINANCIAL ELEMENTS

^{Audit
Qualification: "MILD"
UNCERTAINTIES "MILD"
UNCERTAINTIES}

^{Date
Account Lodged: 03/01/2007}

^{Balance
Sheet Date:
30/06/2006
30/06/2005}

^{Number
of weeks:
52
52}

^{Consolidation
Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS
---}

^{Preliminary
Exp 155,545}

^{Tangible
Fixed Assets:
11,143,017 11,292,632}

^{Total Fixed Assets: 11,298,562 11,292,632}

^{Inventories: 3,046,940 2,298,166}

^{Receivables: 9,353,035 7,928,176}

^{Short
Term Fin. Assets:
597,792}

^{Cash,Banks,
Securitis: 11,441,471 7,665,535}

^{Other
current assets:
522,089
1,154,971}

^{Total Current Assets: 24,363,535 19,644,640}

^{TOTAL ASSETS: 35,662,097 30,937,272}

^{--- LIABILITIES
---}

^{Equity
capital:
491,150
491,150}

^{Reserves: 146,997 89,827}

^{Profit
& lost Account: 20,744,121 14,790,225}

^{Other: -75,444 -46,711}

^{Total Equity: 21,306,824 15,324,491}

^{Long
Term Loans:
4,584,450
5,233,751}

^{L/T
deffered taxes:
214,000 294,000}

^{Total L/T Liabilities: 4,798,450 5,527,751}

^{Trade
Creditors:
4,580,769
5,101,622}

^{Prepay. & Def. charges: 2,644,513 1,474,107}

^{Due
to Bank:
649,493
658,300}

^{Provisions: 1,240,000 800,971}

^{Other
Short term Liab.:
442,048
2,050,030}

^{Total short term Liab.: 9,556,823 10,085,030}

^{TOTAL LIABILITIES: 14,355,273 15,612,781}

PROFIT & LOSS ACCOUNT

^{Net
Sales
41,810,136
36,497,543}

^{Purchases,Sces & Other Goods: 26,605,708 24,772,355}

^{Gross
Profit:
15,204,428
11,725,188}

^{NET
RESULT BEFORE TAX:
7,050,602
2,893,798}

^{Tax
: 1,096,070 833,324}

^{Net
income/loss year:
5,954,532
2,060,474}

^{Interest
Paid:
235,369
284,480}

^{Depreciation: 1,001,998 941,915}

^{Directors
Emoluments:
2,535,604
2,744,593}

^{Wages
and Salaries:
12,824,450 11,726,934}

^{Financial
Income:
124,115
13,106}

RATIOS

^{30/06/2006 30/06/2005}

^{Turnover
per employee: 245941.98 214691.43}

^{Net
result / Turnover(%): 0.14 0.06}

^{Fin.
Charges / Turnover(%): 0.01 0.01}

^{Stock
/ Turnover(%): 0.07 0.06}

^{Net
Margin(%): 14.24 5.65}

^{Return
on Equity(%): 27.95 13.45}

^{Return
on Assets(%): 16.70 6.66}

^{Net
Working capital: 14806712.00 9559610.00}

^{Cash
Ratio: 1.20 0.76}

^{Quick
Ratio: 2.18 1.55}

^{Current
ratio: 2.55 1.95}

^{Receivables
Turnover: 80.53 78.20}

^{Leverage
Ratio: 0.67 1.02}

^{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}

^{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}

^{Inventory Turnover : (360*Inventories)/Net sales}

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

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

FINANCIAL COMMENTS

^{AUDITOR'S REPORT:}

^{THE FINANCIAL
STATEMENTS OF THE SUBSIDIARY, NUTEK AMERICAS INC. ARE CONSOLIDATED WITH THE
FINANCIAL STATEMENTS OF THE COMPANY. IN 2005, THE FINANCIAL STATEMENTS OF NUTEK
AMERICAS INC. WERE NOT AUDITED BECAUSE THE DIRECTORS WERE OF THE OPINION THERE
WERE NO PRACTICAL BENEFITS TO BE DERIVED FROM PERFORMING ADDITIONAL AUDIT
PROCEDURES. THE TOTAL ASSETS, TOTAL REVENUES AND NET PROFIT OF NUTEK AMERICAS
INC. REPRESENT APPROXIMATELY 4%, 12% AND 28% RESPECTIVELY OF THE CONSOLIDATED
TOTALS IN THE ACCOMPANYING GROUP FINANCIAL STATEMENTS AS AT AND FOR THE
FINANCIAL YEAR ENDED 30 JUNE 2005. THERE WERE NO SATISFACTORY AUDIT PROCEDURES
THAT WE COULD PERFORM TO OBTAIN ALL NECESSARY INFORMATION AND EXPLANATIONS
REQUIRED FOR THE PURPOSE OF OUR AUDIT TO SATISFY OURSELVES THAT THE FINANCIAL
STATEMENTS OF NUTEK AMERICAS INC ARE IN FORM AND CONTENT APPROPRIATE AND PROPER
FOR THE PURPOSES OF THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS.
THE CONSOLIDATED PROFIT AND LOSS ACCOUNT, CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY AND CASH FLOWS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2005 DID NOT REFLECT
THE ADJUSTMENTS, IF ANY, ARISING FROM AN AUDIT OF THE GROUP'S SUBSIDIARY, NUTEK
AMERICAS INC. BECAUSE OF THE SIGNIFICANCE OF THE MATTER, WE WERE NOT ABLE TO
AND DID NOT EXPRESS AN OPINION ON THE CONSOLIDATED FINANCIAL STATEMENTS AS AT
30 JUNE 2005 AND FOR THE YEAR ENDED ON THAT DATE.}

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

^NET
WORTH:

^{THE BALANCE SHEET
WAS PASSABLE WITH NET WORTH IMPROVED BY 39.04% FROM S$15,324,491 IN FY 2005 TO
S$21,306,824 IN FY 2006. THIS WAS DUE TO THE INCREASE IN ACCUMULATED PROFITS BY
40.26% (2006: S$20,744,121; 2005: S$14,790,225) AND INCREASE IN CURRENCY
TRANSLATION RESERVE BY 63.64% (2006: S$146,997; 2005: S$89,827).}

^LEVERAGE:

^{IN THE SHORT-TERM,
SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 47.93% (2005:
50.59%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$4,580,769 (2005:
S$5,101,622).}

^{IN THE LONG-TERM,
SUBJECT HAS INTEREST-BEARING BANK LOAN (SECURED) AMOUNTING TO S$4,584,450
(2005: S$5,233,751).}

^{IN ALL, LEVERAGE
RATIO FELL FROM 1.02 TIMES TO 0.67 TIMES AS A RESULT OF GREATER INCREASE IN
TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL,
SUBJECT'S LIQUIDITY POSITION WAS PASSABLE WITH NET WORKING CAPITAL INCREASED BY
54.89% TO S$14,806,712 (2005: S$9,559,610). CURRENT AND QUICK RATIOS WERE
ADEQUATE AT 2.55 TIMES (2005: 1.95 TIMES) AND 2.18 TIMES (2005: 1.55 TIMES),
RESPECTIVELY.}

^{CASH AND CASH
EQUIVALENTS INCREASED BY 49.26% AMOUNTING TO S$11,441,471 (2005: S$7,665,535).}

^{PROFITABILITY:}

^{SUBJECT POSTED AN INCREASE IN REVENUE BY
14.56% FROM S$36,497,543 TO S$41,810,136. NET PROFIT ROSE SIGNIFICANTLY BY 1.89
TIMES TO S$5,954,532 (2005: S$2,060,474). HENCE, NET MARGIN ROSE TO 14.24%
(2005: 5.65%).}

^{DEBT
SERVICING:}

^{DEBT SERVICING
PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND
PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IT WAS NOTED THAT AVERAGE COLLECTION
PERIOD HAS LENGTHENED TO 81 DAYS (2005: 78 DAYS).}

^{NON-CURRENT
ASSETS:}

^{DEFERRED TAX ASSET
OF S$155,545 (2005: NIL) WAS CLASSIFIED AS PRELIMINARY.}

^{NOTES TO THE
FINANCIAL STATEMENTS:}

^{INTEREST-BEARING
BANK LOAN (SECURED):}

^{* PAYABLE WITHIN 1
YEAR - 2006: S$649,493 (2005: S$658,300)}

^{* PAYABLE AFTER 1
YEAR BUT WITHIN 5 YEARS - 2006: S$2,997,997 (2005: S$2,912,552)}

^{* PAYABLE AFTER 5
YEARS - 2006: S$1,586,453 (2005: S$2,321,199)}

^{THE BANK LOANS ARE
SECURED BY A FIRST LEGAL MORTGAGE ON THE COMPANY'S LEASEHOLD PROPERTIES WITH
CARRYING VALUES OF S$9,738,126 (2005: S$9,940,629) AND GUARANTEED BY THREE
DIRECTORS.}

^{THE BANK LOAN
COMPRISES A BUILDING LOAN WHICH IS REPAYABLE IN 180 MONTHLY INSTALLMENTS
COMMENCING APRIL 2002. THE BUILDING LOAN CARRIES INTEREST AT 4.75% (2005:
4.00%) PER ANNUM.}

^{ACQUISITION OF A
SUBSIDIARY:}

^{ON 25 SEPTEMBER
2005, THE COMPANY ACQUIRED ADDITIONAL INTEREST OF 16.25% IN NUTEK EQUIPMENT (SHANGHAI) PTE LTD FOR S$53,332,
SATISFIED IN CASH. NUTEK EQUIPMENT (SHANGHAI)
PTE LTD BECAME A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY AFTER THE ACQUISITION.
NUTEK EQUIPMENT (SHANGHAI) PTE LTD IS ENGAGED IN
THE MANUFACTURING AND SALE
OF INDUSTRIAL MACHINERY AND EQUIPMENT. THE ACQUISITION WAS ACCOUNTED FOR USING
THE PURCHASE METHOD OF CONSOLIDATION.}

^{CONTINGENT
LIABILITIES:}

^{AS AT BALANCE
SHEET DATE:}

^{I) THE COMPANY HAS
AN UNSECURED CONTINGENT LIABILITY IN RESPECT OF AN UNDERTAKING TO PROVIDE
FINANCIAL SUPPORT TO A SUBSIDIARY, TO ENABLE THE SUBSIDIARY TO CONTINUE ITS
OPERATIONS FOR AT LEAST THE NEXT 12 MONTHS. THE NET LIABILITIES OF THE
SUBSIDIARY AS AT 30 JUNE 2006 WERE S$285,630 (2005: S$299,087); AND}

^{II) THE GROUP HAS
OUTSTANDING UNSECURED BANKERS' GUARANTEES OF APPROXIMATELY S$192,000 (2005;
S$105,000), ISSUED IN FAVOR OF THIRD PARTIES IN THE ORDINARY COURSE OF
BUSINESS.}

^{SUBSEQUENT EVENTS:}

^{THE DIRECTORS HAVE
DECLARED A FINAL DIVIDEND OF S$4.56 PER SHARE, TOTALLING S$2,240,000 IN RESPECT
OF THE FINANCIAL YEAR ENDED 30 JUNE 2006 ON THE 3RD JULY 2006. THIS DIVIDEND
PAYABLE HAS NOT BEEN RECOGNISED AS AT YEAR END.}

^{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
03/10/1989 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT
NAMESTYLE AS "NUTEK PRIVATE LIMITED".}

^{AS AT 15/06/2007,
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 491,150 SHARES, OF A VALUE OF
S$491,150.}

^{PRINCIPAL
ACTIVITIES:}

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

^{1) MANUFACTURE OF
TELECOMMUNICATIONS APPARATUS (EG PBX EQUIPMENT, TELEPHONES EXCEPT CELLULAR)}

^{2) ELECTRICAL
WORKS}

^{THE COMPANY IS
LISTED IN THE SINGAPORE
LOCAL DIRECTORIES UNDER THE CLASSIFICATION OF: MACHINERY-SPECIALLY DESIGNED}

^{DURING THE
FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE
RELATING TO THE DESIGN, FABRICATION AND SALES OF INDUSTRIAL MACHINERY AND
EQUIPMENT.}

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

^BACKGROUND:

^{* SUBJECT BEGAN
OPERATIONS FROM A FACTORY LOCATED AT
GUL CIRCLE, BUILDING SOLDERING MACHINES UNDER
LICENSE FROM TAMURA MACHINERY SINGAPORE,
A BRANCH OF TAMURA CORPORATION BASED IN JAPAN. NUTEK ALSO SUPPLIED THE
LOCAL MARKET WITH PCB HANDLING EQUIPMENT, MAINLY CONVEYORS AND LOADER/UNLOADER
SYSTEMS, WHICH WERE DESIGNED AND BUILT IN-HOUSE.}

^ACTIVITIES:

^{* SUBJECT ENGAGES
IN CONCEPTUALISE, DESIGN AND MANUFACTURE OF AUTOMATED}

^{* AUTOMATED
PRODUCTION SYSTEMS TO CUSTOMER SPECIFICATIONS PRODUCTS WHICH INCLUDE PRODUCTION
LINE ASSEMBLY MACHINERY LIKE PRINTED CIRCUIT BOARD HANDLING EQUIPMENT AND WAVE
SOLDERING MACHINES.}

^PRODUCTS:

^{* BUFFERS}

^{* CONVEYORS}

^{* ECONOMICAL
SERIES}

^{* LOADERS AND
UNLOADERS}

^{* MARKING SYSTEMS}

^{* TRAFFIC
CONTROLLER}

^{TRADE NAMES:}

^{*
TAMURA--SOLDERING SYSTEM (JP)}

^{MARKET PRESENCE:}

^{* EUROPE, CHINA, AMERICA,
AUSTRALIAN AND NEW ZEALAND.}

^{TRADE OFFICES IN:}

^{* THE NETHERLANDS,
EUROPE; KOWLOON, HONG KONG; SHANGHAI, CHINA; VICTORIA, AUSTRALIA; AND
COLCHESTER, UNITED KINGDOM.}

^{QUALITY
ASSESSMENT:}

^{* ISO 9001}

^{* ISO 14001}

^{NUMBER OF
EMPLOYEES:}

^{* 170 (AS OF 2006)}

^{FROM THE
TELE-INTERVIEW CONDUCTED ON 20/06/2007, NO OTHER TRADE INFORMATION WAS
AVAILABLE AS SUBJECT'S PERSONNEL DECLINED TO PROVIDE.}

^{REGISTERED AND
BUSINESS ADDRESS:}

^{39 JOO KOON CIRCLE}

^SINGAPORE⁶²⁹¹⁰⁵

^{DATE OF CHANGE OF
ADDRESS: 17/09/2001}

^{- OWNED PREMISE}

^{-130,000 SQ FEET}

^{ADDRESS PROVIDED
BY CLIENT:}

^{39 JOO KOON CIRCLE}

^SINGAPORE⁶²⁹¹⁰⁵

^{- INVALID ADDRESS}

^{WEBSITE:
www.nutek-sg.com}

^{EMAIL:
info@nutek-sg.com}

MANAGEMENT

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

^{1) LIM SHENG SEAW,
A MALAYSIAN}

^{- BASED IN MALAYSIA.}

^{2) YEO LIU PO, A SINGAPOREAN}

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

^{3) JONG CHOON @
YONG CHOON, A SINGAPOREAN}

^{- HOLDS OTHER
DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{EUBIQ PTE. LTD.}

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

SINGAPORE’S ECONOMY GREW BY 6.6% IN 4Q 2006, AFTER A 7.0% GROWTH IN 3Q 2006. THE GROWTH MOMENTUM, ON AN ANNUALISED QUARTER-TO-QUARTER BASIS, DOUBLED TO 7.9% IN 4Q 2006, FROM 3.9% IN THE PREVIOUS QUARTER. THIS BROUGHT FULL-YEAR REAL GDP GROTH TO 7.9%, HIGHER THAN THE 6.6% GROWTH IN 2005.

THE MANUFACTURING SECTOR GREW AT A MORE MODEST PACE OF 7.7% IN 4Q 2006, AFTER A 9.5% EXPANSION IN 3Q 2006. THIS WAS DUE MAINLY TO A FALL IN THE OUTPUT OF THE ELECTRONICS AND CHEMICALS CLUSTERS, AND SLOWER GROWTH IN THE PRECISION ENGINEERING CLUSTER. GROWTH IN THE TRANSPORT ENGINEERING CLUSTER EASED BUT REMAINED STRONG. MEANWHILE, THE BIOMEDICAL MANUFACTURING CLUSTER ACCELERATED FROM A GROWTH OF 4.7% IN 3Q 2006 TO 27% IN 4Q 2006. FOR THE WHOLE YEAR, THE MANUFACTURING SECTOR GREW BY 12%, UP FROM 9.5% IN 2005, SUPPORTED BY STRONGER PERFORMANCES IN THE TRANSPORT ENGINEERING, BIOMEDICAL

MANUFACTURING AND PRECISION ENGINEERING CLUSTERS.

THE WHOLESALE AND RETAIL TRADE SECTOR EXPANDED 6.9% IN 4Q 2006, BUT ITS GROWTH MOMENTUM WAS DOWN BY 3.5%. THE WHOLESALE SEGMENT MODERATED, WITH GROWTH OF NON-OIL RE-EXPORTS HALVED FROM 13% IN 3Q 2006 TO 6.3% IN 4Q 2006. PERFORMANCE OF THE RETAIL SEGMENT IMPROVED FURTHER AS RETAIL SALES WENT UP 7.9% IN 4Q 2006, COMPARED TO 5.2% IN THE PREVIOUS QUARTER. OVER 2006, THE WHOLESALE AND RETAIL SECTOR EXPANDED STRONGLY BY 10%, UP FROM 9.6% IN 2005.

APART FROM WHOLESALE AND RETAIL TRADE, ALL SECTORS EXPERIENCED POSITIVE GROWTH MOMENTUM IN 4Q 2006. FOR 2006 AS A WHOLE, ALL SECTORS REGISTERED GROWTH, LED BY MANUFACTURING, WHOLESALE & RETAIL TRADE AND FINANCIAL SERVICES.

OUTLOOK

THE OUTLOOK FOR THE ECONOMY IS GENERALLY POSITIVE ALTHOUGH THERE ARE SOME DOWNSIDE RISKS. THE AVIAN FLU PANDEMIC TREAT HAS RESURFACED AS A GROWING NUMBER OF COUNTRIES REPORTED CASES OF INFECTION IN BIRDS IN RECENT WEEKS. OTHER UNCERTAINTIES INCLUDE THE DISORDERLY UNWINDING OF GLOBAL IMBALANCES, TERRORISM AND THE VULNERABILITY OF OIL PRICES TO SUPPLY SHOCKS. AS A RESULT, THE ECONOMIC GROWTH FORECAST FOR 2007 IS BEING RAISE FROM 4.0% TO 6.0% TO 4.5% TO 6.5%.

THE MANUFACTURING SECTOR IS CAUTIOUSLY OPTIMISTIC ABOUT BUSINESS SITUATIONS IN THE NEXT SIX MONTHS OF 2007.

WHOLESALERS ARE GENERALLY LESS OPTIMISTIC ABOUT THE BUSINESS ENVIRONMENT. IN PARTICULAR, DEALERS OF JEWELLERY AND WATCHES, INDUSTRIES MACHINERY AND EQUIPMENT, TELECOMMUNICATIONS EQUIPMENT AND ELECTRONIC COMPONENTS ARE THOSE WHO FORESEE SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

TODAY

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

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%)

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