MIRA INFORM REPORT

Report Date :

22.10.2007

IDENTIFICATION DETAILS

Name :	PALL FILTRATION PTE LTD
Registered Office :	^17 Changi Business Park Central 1, #06-01, Singapore – 486073
Country :	Singapore
Financials (as on) :	31.07.2005
Date of Incorporation :	^29/09/1984
Com. Reg. No.:	^198403567G
Legal Form :	^Pte Ltd
Line of Business :	Trading in Filtration Equipment and Filter Equipments for all types of Industrial Applications

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

PALL FILTRATION PTE LTD

Line Of Business

TRADING IN FILTRATION EQUIPMENT AND FILTER EQUIPMENTS FOR ALL TYPES OF INDUSTRIAL APPLICATIONS

Parent Company

PALL CORPORATION

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2005

COMPANY

Sales : S$84,451,131

Networth : S$20,408,901

Paid-Up Capital : S$25,000

Net result : S$4,080,379

Net Margin(%) : 4.83

Return on Equity(%) : 19.99

Leverage Ratio : 0.73

COMPANY IDENTIFICATION

^{Subject Company: PALL FILTRATION PTE LTD}

^{Former Name: PALL FLUID CLARIFICATION}

^{Business Address: 17 CHANGI BUSINESS PARK CENTRAL 1}

^#06-01

^{Town: SINGAPORE}

^{Postcode: 486073}

^{County: -}

^{Country: Singapore}

^{Telephone: 6389 6500/6388 8688}

^{Fax: 6389 6501}

^{ROC Number: 198403567G}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{PALL FLUID CLARIFICATION IMPORT-EXPORT PTE LTD DATE: 13/10/1993}

SUMMARY

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

^{Legal Form: Pte Ltd}

^{Date Inc.: 29/09/1984}

^{Previous Legal Form: -}

^{Summary year: 31/07/2006}

^{Sales: 84,451,131}

^{Net worth: 20,408,901}

^{Capital: -}

^{Paid-Up Capital: 25,000}

^{Employees: 78}

^{Net result: 4,080,379}

^{Share value: -}

^{Auditor: KPMG}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 29/09/1984}

PRINCIPAL(S)

^{STEPHEN FRANK SMITH S2745130F Director}

DIRECTOR(S)

^{ANDREW THOMAS SCULLY 093221775 Director}

^{Appointed on: 15/06/2006}

^{Street: NO. 12, HONGDA NANLU}

^{BEIJING ECONOMIC TECHNOLOGICAL}

^{DEVELOPMENT AREA}

^{Town: BEIJING}

^{Postcode: 100176}

^{Country: China}

^{JONATHAN MARK WEINER 712590964 Director}

^{Appointed on: 15/06/2006}

^{Street: 6-8-1 NISHISHINJUKU, SHINJUKU-KU}

^{Town: TOKYO}

^{Postcode: 163-6017}

^{Country: Japan}

^{STEPHEN FRANK SMITH S2745130F Director}

^{Appointed on: 17/05/2004}

^{Street: 14 MOUTH ELIZABETH}

^#11-03

^{ELIZABETH TOWER}

^{Town: SINGAPORE}

^{Postcode: 228512}

^{Country: Singapore}

^{MADELYN KWANG YEIT LAM S1426198B Company Secretary}

^{Appointed on: 15/09/1985}

^{Street: 869 TAMPINES STREET 83}

^#12-179

^{Town: SINGAPORE}

^{Postcode: 520869}

^{Country: Singapore}

^{KWOK CHOY LING S1536691E Director}

^{Appointed on: 01/11/1993}

^{Street: 251 PASIR RIS STREET 21}

^#12-141

^{Town: SINGAPORE}

^{Postcode: 510251}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{MARCUS ALBERT WILSON 500286341}

ACTIVITY(IES)

^{INDUSTRIAL EQUIPMENT And SUPPLIES Code:11830}

^{FILTERS - LIQUID - INDUSTRIAL Code:8830}

^{BASED ON ACRA'S RECORD AS AT 08/10/2007}

^{1) WHOLESALE OF INDUSTRIOAL MACHINERY AND EQUIPMENT; TRADING IN FILTRATION EQUIPMENT, FILTER ELEMENTS AND ALL TYPES OF}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{CITIBANK N.A.}

SHAREHOLDERS(S)

^{PALL CORPORATION 25,000 Company}

^{Street: 2200 NORTHERN BOULEVARD}

^{EAST HILLS}

^{Town: USA}

^{Postcode: 11548}

^{Country: United States}

HOLDING COMPANY

^{PALL CORPORATION UF02205R %: 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: LEVEL}

^{Financial Situation: AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 09/01/2007}

^{Balance Sheet Date: 31/07/2005 31/07/2004}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 880,517 958,602}

^{Total Fixed Assets: 880,517 958,602}

^{Inventories: 6,344,271 6,329,939}

^{Receivables: 19,035,221 19,763,282}

^{Cash,Banks,Securities: 8,408,858 7,634,102}

^{Other current assets: 736,579 286,765}

^{Total Current Assets: 34,524,929 34,014,088}

^{TOTAL ASSETS: 35,405,446 34,972,690}

^{--- LIABILITIES}

^{Equity capital: 25,000 25,000}

^{Profit & loss Account: 20,383,901 21,980,732}

^{Total Equity: 20,408,901 22,005,732}

^{L/T deferred taxes: 118,691 163,000}

^{Total L/T Liabilities: 118,691 163,000}

^{Trade Creditors: 13,508,502 10,695,308}

^{Provisions: 1,340,516 1,998,500}

^{Other Short term Liab.: 28,836 110,150}

^{Total short term Liab.: 14,877,854 12,803,958}

^{TOTAL LIABILITIES: 14,996,545 12,966,958}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 84,451,131 76,729,991}

^{NET RESULT BEFORE TAX: 5,227,586 9,219,417}

^{Tax: 1,147,207 1,920,000}

^{Net income/loss year: 4,080,379 7,299,417}

^{Depreciation: 419,725 387,994}

^{Dividends: 5,677,210 -}

^{Directors Emoluments: 1,052,045 644,623}

^{Wages and Salaries: 6,213,211 5,895,670}

^{Financial Income: 83,666 28,867}

RATIOS

^{31/07/2005 31/07/2004}

^{Turnover per employee: 1082706.81 983717.83}

^{Net result / Turnover(%): 0.05 0.10}

^{Stock / Turnover(%): 0.08 0.08}

^{Net Margin(%): 4.83 9.51}

^{Return on Equity(%): 19.99 33.17}

^{Return on Assets(%): 11.52 20.87}

^{Dividends Coverage: 0.72 0.72}

^{Net Working capital: 19647075.00 21210130.00}

^{Cash Ratio: 0.57 0.60}

^{Quick Ratio: 1.84 2.14}

^{Current ratio: 2.32 2.66}

^{Receivables Turnover: 81.14 92.72}

^{Leverage Ratio: 0.73 0.59}

^{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}

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

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

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

FINANCIAL COMMENTS

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH TOTAL EQUITY DECREASING BY 7.26% AMOUNTING TO S$20,408,901 (2004: S$22,005,732). THIS WAS ATTRIBUTED TO LOWER RETAINED EARNINGS BROUGHT FORWARD OF S$20,383,901 (2004: S$21,980,732).}

^LEVERAGE:

^{THE LEVERAGE RATIO POSTED HIGHER AT 0.73 TIMES (2004: 0.59 TIMES), INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE MORE SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS INCREASED BY 26.30%, AMOUNTING TO S$13,508,502 (2004: S$10,695,308).}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE COMPANY WAS FAIRLY HEALTHY. BOTH THE QUICK AND CURRENT RATIOS WERE ADEQUATE AT 1.84 TIMES (2004: 2.14 TIMES) AND 2.32 TIMES}

^{(2004: 2.66 TIMES) RESPECTIVELY.}

^{THIS WAS IN TANDEM WITH THE NET WORKING CAPITAL, WHICH REGISTERED FAVOURABLY AT S$19,647,075 (2004: S$21,210,130).}

^{PROFITABILITY:}

^{REVENUE FOR FY2005 ROSE BY 10.06%, ACCOUNTING FOR S$84,451,131 (2004: S$76,729,991). HOWEVER, NET INCOME DECLINED BY 44.10%, AMOUNTING TO S$4,080,379 (2004: S$7,299,417).}

^{THUS, NET MARGIN STOOD LOWER AT 4.83% (2004: 9.51%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE SUFFICIENT LIQUIDITY AND IF TRADE RECEIVABLES WERE FORTHCOMING. AVERAGE COLLECTION PERIOD HAD SHORTENED TO 81 DAYS (2004: 93 DAYS).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CREDIT RISK}

^{AT THE BALANCE SHEET DATE, OTHER THAN AMOUNTS DUE FROM A MAJOR CUSTOMER CONSTITUTING 30% (2004: 27%) OF TRADE RECEIVABLES, THERE WAS NO SIGNIFICANT CONCENTRATION OF CREDIT RISK.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 29/09/1984 AS A LIMITED PRIVATE COMPANY AND WAS TRADING UNDER ITS FORMER NAMESTYLE AS "PALL FLUID CLARIFICATION IMPORT-EXPORT PTE LTD".}

^{SUBSEQUENTLY ON 13/10/1993, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "PALL FILTRATION PTE LTD".}

^{AS AT 08/10/2007, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 25,000 SHARES OF A VALUE OF S$25,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) WHOLESALE OF INDUSTRIOAL MACHINERY AND EQUIPMENT; TRADING IN FILTRATION EQUIP}

^{FILTER ELEMENTS & ALL TYPES OF IND'L APPLICATION}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE RELATING TO THE TRADING IN FILTRATION EQUIPMENT AND FILTER EQUIPMENTS FOR ALL TYPES OF INDUSTRIAL APPLICATIONS.}

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

^{SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: FILTERS - LIQUID - INDUSTRIAL.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:}

^{* SUPPLY OF ALL KINDS OF FILTERS}

^{EXPORT COUNTRIES:}

^{* SOUTHEAST ASIA}

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

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^{QUALITY ASSESSMENT:}

^{* ISO 9001}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE ON 15/10/2007.}

^{THE IMMEDIATE AND ULTIMATE HOLDING CORPORATION DURING THE FINANCIAL YEAR IS PALL CORPORATION, A COMPANY INCORPORATED IN THE STATE OF NEW YORK, UNITED STATES OF AMERICA.}

^{NUMBER OF EMPLOYEES (31 JULY):}

^{* COMPANY - 2005: 78 (2004: 68)}

^{REGISTERED ADDRESS:}

^{20 RAFFLES PLACE}

^#09-01

^{OCEAN TOWERS}

^{SINGAPORE 048620}

^{DATE OF CHANGE OF ADDRESS: 01/01/2002}

^{BUSINESS ADDRESS:}

^{17 CHANGI BUSINESS PARK CENTRAL 1}

^#06-01

^{SINGAPORE 486073}

^{-- RENTED PREMISE}

^{-- PREMISE OWNED BY: HSBC INSTITUTIONAL TRUST SVC (S) LTD}

^WEBSITE:

^{* http://www.pall.com (HOLDING COMPANY'S WEBSITE)}

^EMAIL:

^{* sgcustomerservice@pall.com}

MANAGEMENT

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

^{1) ANDREW THOMAS SCULLY, A BRITISH}

^{- BASED IN CHINA}

^{2) JONATHAN MARK WEINER, AN AMERICAN}

^{- BASED IN JAPAN}

^{3) STEPHEN FRANK SMITH, AN AUSTRALIAN}

^{- BASED IN SINGAPORE}

^{4) KWOK CHOY LING, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP 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

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE DECLINED BY 7.5% IN Q1 2007. EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 7.4%. SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, INDUSTRIAL AND CONSTRUCTION MACHINERY REPORTED DECLINES OF 11.6% TO 23.8%.

HOWEVER, WHOLESALERS OF FOOD, BEVERAGES AND TOBACCO REGISTERED HIGHER TURNOVER OF 5.4%.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE IN QUARTER 1 2007 FELL BY 7.6%. EXCLUDING PETROLEUM, FOREIGN SALES DECLINED BY 8.0%. MOST WHOLESALE SECTORS REPORTED LOWER OVERSEAS RECEIPTS IN QUARTER 1 2007 COMPARED TO THE PREVIOUS QUARTER, EXCEPT HOUSEHOLD EQUIPMENT AND FURNITURE SECTOR. SHIP CHANDLERS & BUNKERING REPORTED THE LARGEST DECLINE OF 18.3% IN QUARTER 1 2007, FOLLOWED BY FOOD BEVERAGES & TOBACCO SECTOR OF 17.7%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE MARGINALLY BY 0.7% IN QUARTER 2 2007, COMPARED TO QUARTER 2 2006. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.1%. SALES OF OPTICAL GOODS & BOOKS, FURNITURE & HOUSEHOLD EQUIPMENT AND SUPERMARKETS ENJOYED STRONG GROWTHS OVER A YEAR AGO. PROVISION & SUNDRY SHOPS, WATCHES AND JEWELLERY, DEPARTMENT STORES AND WEARING APPAREL & FOOTWEAR SECTORS ALSO REPORTED HIGHER SALES OF 4.35 TO 5.9% RESPECTIVELY.

HOWEVER, RETAILERS OF MOTOR VEHICLES, FOOD & BEVERAGES, TELECOMMUNICATIONS APPARATUS & COMPUTERS AND PETROL SERVICES STATIONS REPORTED LOWER SALES.

OUTLOOK

GENERALLY, WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD & BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC.

RETAIL TRADE FIRMS ANTICIPATE BUSINESS TO BE LESS BRISK FOR THE NEXT 6 MONTHS. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

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