MIRA INFORM REPORT

Report Date :

14.08.2008

IDENTIFICATION DETAILS

Name :	J.P. ELECTRONICS PTE
Registered Office :	^605B Macpherson Road 04-13 ^Citimac Industrial Complex ^368241
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^15.06.1999
Com. Reg. No.:	^199903308R
Legal Form :	^Pte Ltd
Line of Business :	^Importers, Wholesalers and Distributors of Electronic Products and Accessories

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

J.P. ELECTRONICS PTE

Line Of Business 

^{IMPORTERS, WHOLESALERS AND DISTRIBUTORS OF ELECTRONIC PRODUCTS AND ACCESSORIES.}

Parent Company

^{DEVICE ELECTRONICS PTE LTD}

(PERCENTAGE OF SHAREHOLDING: 51.00%)

Financial Elements

FY 2006

COMPANY

Sales : S$8,237,773

Networth : S$ 341,776

Paid-Up Capital : S$ 300,000

Net result : S$ 36,119

Net Margin(%) : 0.44

Return on Equity(%) : 10.57

Leverage Ratio : 5.82

COMPANY IDENTIFICATION

^{Subject Company : J.P. ELECTRONICS PTE LTD}

^{Former Name :}

^{Business Address : 605B MACPHERSON ROAD}

^04-13

^{CITIMAC INDUSTRIAL COMPLEX}

^Town:

^{Postcode : 368241}

^{County :}

^{Country : Singapore}

^{Telephone : 6383 5854}

^{Fax : 6383 5856}

^{ROC Number : 199903308R}

^{Reg. Town :}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 15/06/1999}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 8,237,773}

^{Networth : 341,776}

^{Capital : -}

^{Paid-Up Capital : 300,000}

^{Employees : 10}

^{Net result : 36,119}

^{Share value : -}

^{Auditor : CHAN KUM CHEE & CO}

^{BASED ON ACRA'S RECORD}

^{NO.OF SHARES CURRENY AMOUNT}

^{ISSUED ORDINARY 400,000 SGD 400,000.00}

^{PAID-UP ORDINARY - SGD 400,000.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 15/06/1999}

PRINCIPAL(S)

^{LIM BOON WAN S1634599G Managing Director}

DIRECTOR(S)

^{SNG CHOR HEAH S0112903A Company Secretary}

^{Appointed on : 01/02/2002}

^{Street : 35 JALAN AMPANG}

^{Town: SINGAPORE}

^{Postcode: 268621}

^{Country: Singapore}

^{LIM BOON WAN S1634599G Director}

^{Appointed on : 15/06/1999}

^{Street : 62 JALAN TENON}

^{CHARLTON PARK}

^{Town: SINGAPORE}

^{Postcode: 537274}

^{Country: Singapore}

^{LIM BOON WAN S1634599G Managing Director}

^{Appointed on : 28/06/1999}

^{Street : 62 JALAN TENON}

^{CHARLTON PARK}

^{Town: SINGAPORE}

^{Postcode: 537274}

^{Country: Singapore}

^{MANPRIT SINGH S2684657I Director}

^{Appointed on : 15/06/1999}

^{Street : 3 RIVERVALE LINK}

^#04-23

^{RIVERVALE, THE}

^{Town: SINGAPORE}

^{Postcode: 545119}

^{Country: Singapore}

ACTIVITY(IES)

^{COMPUTER PERIPHERALS And ACCESSORIES-WHSLE And MFR Code:5088}

^{BASED ON ACRA'S RECORD}

^{1) OTHER SUPPORT ACTIVITIES NEC; IMPORTERS, WHOLESALERS AN}

^{DISTRIBUTORS OF ELECTRONIC PRODUCTS AND ACCESSORIES}

CHARGES

^{Date: 01/02/2008}

^{Comments : CHARGE NO: C200801398}

^{CHARGEE(S): UNITED OVERSEAS BANK LIMITED}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date: 31/08/2006}

^{Comments : CHARGE NO: C200605859}

^{CHARGEE(S): UNITED OVERSEAS BANK LIMITED}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date: 04/12/2001}

^{Comments : CHARGE NO : 200105932}

^{SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE : THE DEVELOPMENT BANK OF SINGAPORE LTD}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{UNITED OVERSEAS BANK LIMITED}

SHAREHOLDERS(S)

^{DEVICE ELECTRONICS PTE LTD 204,000 Company}

^{Street : 101 KITCHENER ROAD}

^#02-04

^{JALAN BESAR PLAZA}

^{Town: SINGAPORE}

^{Postcode: 208511}

^{Country: Singapore}

^{LIM BOON WAN 20,000 Private Person}

^{Street : 62 JALAN TENON}

^{CHARLTON PARK}

^{Town: SINGAPORE}

^{Postcode: 537274}

^{Country: Singapore}

^{MANPRIT SINGH 176,000 Private Person}

^{Street : 3 RIVERVALE LINK}

^#04-23

^{RIVERVALE, THE}

^{Town: SINGAPORE}

^{Postcode: 545119}

^{Country: Singapore}

HOLDING COMPANY

^{DEVICE ELECTRONICS PTE LTD 197800960H % : 51.00}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 06/06/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 385,862 394,935}

^{Total Fixed Assets: 385,862 394,935}

^{Inventories: 1,132,313 861,136}

^{Receivables: 710,008 641,629}

^{Cash,Banks, Securitis: 77,170 5,902}

^{Other current assets: 24,501 71,917}

^{Total Current Assets: 1,943,992 1,580,584}

^{TOTAL ASSETS: 2,329,854 1,975,519}

^{--- LIABILITIES ---}

^{Equity capital: 300,000 300,000}

^{Profit & lost Account: 41,776 5,657}

^{Total Equity: 341,776 305,657}

^{Long Term Loans: 248,880 254,904}

^{L/T deffered taxes: 3,600 4,600}

^{Total L/T Liabilities: 252,480 259,504}

^{Trade Creditors: 845,190 847,331}

^{Prepay. & Def. charges: 44,738 57,535}

^{Advanced payments: 2,000 2,000}

^{Due to Bank: 511,052 431,189}

^{Provisions: 211,626 35,326}

^{Other Short term Liab.: 120,992 36,977}

^{Total short term Liab.: 1,735,598 1,410,358}

^{TOTAL LIABILITIES: 1,988,078 1,669,862}

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

^{Net Sales 8,237,773 6,328,300}

^{NET RESULT BEFORE TAX: 41,919 4,005}

^{Tax : 5,800 10,118}

^{Net income/loss year: 36,119 -6,113}

^{Interest Paid: 40,049 38,538}

^{Depreciation: 28,402 25,588}

^{Directors Emoluments: 374,861 195,906}

^{Wages and Salaries: 234,934 225,810}

RATIOS

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

^{Turnover per employee: 823777.30 632830.00}

^{Net result / Turnover(%): 0.00 -0.00}

^{Fin. Charges / Turnover(%):0.00 0.01}

^{Stock / Turnover(%): 0.14 0.14}

^{Net Margin(%): 0.44 -0.10}

^{Return on Equity(%): 10.57 -2.00}

^{Return on Assets(%): 1.55 -0.31}

^{Net Working capital: 208394.00 170226.00}

^{Cash Ratio: 0.04 0.00}

^{Quick Ratio: 0.45 0.46}

^{Current ratio: 1.12 1.12}

^{Receivables Turnover: 31.03 36.50}

^{Leverage Ratio: 5.82 5.46}

^{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)/1000}

^{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 SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 11.82% TO S$341,776 (2005: S$305,657). THIS WAS ATTRIBUTED TO A RISE IN ACCUMULATED PROFITS BY 6.38 TIMES TO S$41,776 IN FY 2006 FROM S$5,657 IN FY 2005.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 48.70% (2005: 60.08%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$845,190 (2005: S$847,331).}

^{DUE TO BANKS ROSE BY 18.52% AND AMOUNTED TO S$511,052 (2005: S$431,189). BREAKDOWN WAS AS FOLLOWS:}

^{* TRUST RECEIPTS - 2006: S$268,587 (2005: S$276,824)}

^{* BANK OVERDRAFTS (SECURED) - 2006: S$219,125 (2005: S$136,147)}

^{* BANK LOAN (SECURED) - 2006: S$23,340 (2005: S$18,218)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 5.46 TIMES IN FY 2005 TO 5.82 TIMES IN FY 2006 INDICATING THAT THE COMPANY'S LIABILITIES WERE MORE SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY. A LOWER RATIO WOULD BE MORE DESIRABLE AS THE LOWER THE RATIO, THE GREATER THE FINANCIAL SAFETY AND OPERATING FREEDOM FOR THE COMPANY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS CONSIDERED PASSABLE AS SEEN FROM NET WORKING CAPITAL ROSE BY 22.42% AND AMOUNTED TO S$208,394 (2005: S$170,226).}

^{CURRENT RATIO REMAIN STABLE AT 1.12 TIMES (2005: 1.12 TIMES) WHILE THE QUICK RATIO FELL TO 0.45 TIMES (2005: 0.46 TIMES).}

^{CASH AND CASH EQUIVALENTS ROSE BY 12.08 TIMES FROM S$5,902 IN FY 2005 TO S$77,170 IN FY 2006.}

^{PROFITABILITY:}

^{SUBJECT POSTED AN INCREASE IN REVENUE OF 30.17% WHICH AMOUNTED TO S$8,237,773 (20005: S$6,328,300). SIMILARLY, NET PROFIT ROSE BY 6.91 TIMES WHICH AMOUNTED TO S$36,119 (2005: S$-6,113). AS A RESULT, NET MARGIN ROSE TO 0.44% (2005: -0.10%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING.}

^{IT WAS NOTED THAT AVERAGE COLLECTION PERIOD HAS SHORTHENED TO 31 DAYS (2005: 37 DAYS).}

^{NOTES TO FINANCIAL STATEMENTS:}

^{* BANK LOAN:}

^{THE BANK LOAN IS SECURED BY A MORTGAGE OVER THE FREEHOLD PROPERTY AND CORPORATE GUARANTEE GIVEN BY THE ULTIMATE HOLDING COMPANY AND DIRECTORS. INTEREST IS CHARGED AT 3.8% (2005: 5.5%) PER ANNUM.}

^{* TRUST RECEIPTS (SECURED):}

^{TRUST RECEIPTS ARE SECURED BY THE MORTGAGE OVER THE FREEHOLD PROPERTY}

^{AND CORPORATE GUARANTEE GIVEN BY THE ULTIMATE HOLDING COMPANY AND}

^{DIRECTORS. INTEREST OF BETWEEN 7.2% TO 9.36% (2005: 5.47% TO 7.43%)}

^{WAS INCURRED DURING THE FINANCIAL YEAR.}

^{TRUST RECEIPTS ARE DENOMINATED IN UNITED STATES DOLLARS.}

^{* BANK OVERDRAFT (SECURED): THE BANK OVERDRAFT IS SECURED BY THE MORTGAGE OVER THE FREEHOLD PROPERTY AND CORPORATE GUARANTEE GIVEN BY THE ULTIMATE HOLDING COMPANY AND DIRECTORS. INTEREST IS CHARGED AT 5.50% (2005: 6.25%) PER ANNUM.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 15/06/1999 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "J.P. ELECTRONICS PTE LTD".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 400,000 SHARES, OF A VALUE OF S$400,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{1) OTHER SUPPORT ACTIVITIES NEC; IMPORTERS, WHOLESALERS AN}

^{DISTRIBUTORS OF ELECTRONIC PRODUCTS AND ACCESSORIES}

^{THE COMPANY WAS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE}

^{CLASSIFICATION OF: ELECTRONIC COMPONENTS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE THOSE OF IMPORTERS, WHOLESALERS AND DISTRIBUTORS OF ELECTRONIC PRODUCTS AND ACCESSORIES.}

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

^{ACTIVITIES :}

^{* SPECIALIZES IN THE FULL ELECTRONIC COMPONENT RANGE IN CONSUMER}

^{ELECTRONICS, ENTERTAINMENT, MEDICAL ELECTRONICS, TELECOM AND}

^{INDUSTRIAL ELECTRONICS.}

^{* PROVIDE ALL TYPES OF MILITARY GRADE PARTS AND INDUSTRIAL ITEMS WITH}

^{HIGH-RELIABILITY, EXTENDED TEMPERATURE RANGE SPECIFICATIONS.}

^PRODUCTS:

^{* BRIDGE RECTIFIERS}

^{* CAPACITORS}

^{* CERAMIC CAPACITORS}

^{* CHIP CAPACITORS}

^{* COOLING FANS}

^{* CRYSTAL DIODES}

^{* CRYSTAL OSCILLATORS}

^{* DIODES}

^{* ELECTRICAL EQUIPMENT, SUPPLIES & SERVICES}

^{* ELECTRICAL TERMINAL BLOCKS}

^{* ELECTRONIC COMPONENT & PRODUCTS TRADERS}

^{* ELECTRONIC COMPONENTS}

^{* ELECTRONIC COMPONENTS & SERVICES}

^{* FANS}

^{* FANS, PARTS & SUPPLIES}

^{* IC EXTRACTORS}

^{* IMPORTERS & EXPORTERS}

^{* INTEGRATED CIRCUIT EXTRACTORS}

^{* INTEGRATED CIRCUITS}

^{* INTEGRATED CIRCUITS, EQUIPMENT & SERVICES}

^{* OSCILLATORS}

^{* QUARTZ CRYSTALS}

^{* RECTIFIERS}

^{* SEMICONDUCTOR ASSEMBLY SERVICE}

^{* SEMICONDUCTOR COMPONENTS & SERVICES}

^{* TERMINAL BLOCKS : ELECTRICAL}

^{* TRANSISTORS}

^SERVICES:

^{* DESIGN SERVICES - OUR EXPERIENCED TECHNICAL TEAM PROVIDE UNBIASED}

^{GUIDANCE AND SYSTEM-LEVEL ANALYSIS ON YOUR SPECIFIC APPLICATIONS.}

^{YOU CAN TAKE ADVANTAGE OF OUR ACCESS TO TECHNICAL RESOURCES OF}

^{LEADING MANUFACTURERS.}

^{* DESIGN TOOLS - WE PROVIDE WIDE SELECTION OF DEVELOPMENT TOOLS TO}

^{TAKE ADVANTAGE OF THE BEST IN SEMICONDUCTOR TECHNOLOGIES.. WHETHER}

^{DEVELOPING YOUR PRODUCT VISION, CONNECTING YOUR IDEAS, OR SIMPLY}

^{EVALUATING A COMPONENT, THE DEVELOPMENT TOOLS YOU NEED ARE}

^{AVAILABLE FROM US.}

^{* DESIGN TRAINING - WE ARRANGE TRAINING AT YOUR DOORSTEPS, COOPERATED}

^{WITH OUR MANUFACTURERS TECHNICAL TEAM.}

^{* KITTING - OUR KITTING SERVICES ALLOW CUSTOMERS TO REDUCE INVENTORY}

^{LEVELS, PROCUREMENT COSTS, AND CYCLE TIMES. THESE SERVICES ARE}

^{IDEAL FOR CUSTOMERS WHO ARE SATISFIED WITH THEIR CURRENT}

^{MANUFACTURING SOLUTIONS, BUT ARE IN NEED OF A MATERIALS MANAGEMENT}

^{SYSTEM AND STAFF THAT WILL DELIVER PRODUCTION-READY KITS, JUST IN}

^{TIME, TO THE REQUESTED DESTINATION.}

^{* IPO SERVICES - WE ARE WORKING WITH SEVERAL OEM'S AS THEIR IPO'S IN}

^{SINGAPORE. WE HAVE EXPERTISE IN SOURCING THE WHOLE RANGE OF ITEMS}

^{AND CONSOLIDATING THE SHIPMENTS.}

^{* MATERIALS MANAGEMENT - WE CONSTANTLY MONITOR THE NEEDS OF OUR}

^{ESTEEMED CUSTOMERS AND TRY TO MEET THEIR PRODUCTIONS SCHEDULES EVEN}

^{IF THE PRODUCTS ARE IN ACUTE SHORTAGES. WE ARE ALWAYS THERE TO}

^{PROVIDE OUR REGULAR CUSTOMER AN INVENTORY BACKUP AND JIT DELIVERY.}

^{* SAMPLES FOR TESTING - WE PROVIDE SAMPLES FOR MAJOR LINE ITEMS FROM}

^{STOCK. WE DO KEEP COMPREHENSIVE RANGE OF STOCKS AT ANY POINT OF}

^{TIME. WE CAN PROVIDE THE SAMPLES IMMEDIATELY FOR THOSE IN STOCK OR}

^{WITHIN 2 WEEKS FOR THE NON-STOCKING ITEMS ON PAYMENT BASIS.}

^{* DEMO BOARDS - WE PROVIDE OFF-THE-SHELF READYMADE SOLUTIONS AND}

^{CUSTOM SERVICES FOR OEMS WITH DEMO BOARDS.}

^{* INFORMATION SERVICES - WE PROVIDE INFORMATION SERVICES TO REDUCE}

^{YOUR RISK AND IMPROVE THE EFFICIENCY OF YOUR SUPPLY CHAIN BY}

^{DELIVERING A UNIQUE BLEND OF TECHNICAL AND PROCUREMENT RISK DATA ON}

^{ELECTRONIC COMPONENTS DIRECTLY TO DECISION-MAKERS AT CRITICAL}

^{POINTS ALONG YOUR PRODUCT LIFE CYCLE.}

^{* COMMERCIAL SERVICES - OUR COMMERCIAL DEPARTMENT HAVE EXPERIENCED}

^{TEAM OF PERSONNEL WHO CAN PROVIDE RELIABLE SERVICES TO HANDLE}

^{SHIPMENTS FOLLOWING STRICT GUIDELINES IN ORDER TO PREVENT ANY}

^{DELAYS OR IMPROPER CHARGES THAT MAY OCCUR WHEN SHIPPING}

^{INTERNATIONALLY UNDER L/C OR OTHER COMMERCIAL MODE OF PAYMENT.}

^{* SPECIAL SHIPPING FACILITY - WE DO PROVIDE ANY SPECIAL PACKING}

^{REQUIREMENTS OF THE PRODUCTS. OUR EXPERIENCED WAREHOUSE TEAM}

^{PROVIDE SOLUTIONS TO SUIT THE DIFFERENT ENVIRONMENTAL CONDITIONS IN}

^{THE DIFFERENT PART OF THE WORLD.}

^{CUSTOM SERVICES OFFERED:}

^{* TURNKEY BOARD DESIGN}

^{* SIGNAL INTEGRITY ANALYSIS}

^{* COMPREHENSIVE ASIC SERVICES}

^{* PROCESSOR DESIGN}

^{* NETWORKING PROCESSORS}

^{* GENERAL µP}

^{* DSP}

^{* FPGA}

^{* WIRELESS EXPERTISE}

^{* OS/RTOS DESIGN AND INTEGRATION}

^{* DEVICE DRIVER DEVELOPMENT}

^{* FIRMWARE DEVELOPMENT}

^{* BUS EXPERIENCE}

^{* I/O STANDARDS}

^{* CHASSIS DESIGN}

^{* CUSTOM POWER SUPPLY DESIGN}

^{* COMPLIANCE TESTING}

^{DISTRIBUTOR/AGENT FOR:}

^{* AUK}

^{* ATMEL}

^{* BELFUSE-STEWART}

^{* BOURNS}

^{* CENTALIC}

^{* DCCOM}

^{* EVERLIGHT}

^{* MARUWA}

^{* NXP SEMICONDUCTORS}

^{* PANDUIT}

^{* SHARP}

^{* TELEDYNE}

^{* TTI}

^{* TXC}

^{* ETC.}

^{FROM THE TELE-INTERVIEW CONDUCTED, SUBJECT CONFIRMED IT BUSINESS ADDRESS, CONTACT NUMBERS AND LINE OF BUSINESS. SUBJECT ALSOREVEALED THAT THEY HAVE ABOUT 10 EMPLOYEES. NO OTHER TRADE INFORMATION WAS AVAILABLE}

^{THE HOLDING COMPANY IS DEVICE ELECTRONICS PTE LTD, A COMPANY INCORPORATED IN SINGAPORE.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{605B MACPHERSON ROAD}

^04-13

^{CITIMAC INDUSTRIAL COMPLEX}

^{SINGAPORE 368241}

^{DATE OF CHANGE OF ADDRESS: 22/04/2000}

^{- RENTED PREMISE}

^{- PREMISE OWNED BY: TORI NAGA}

^{WEBSITE: http://www.jpegroup.com}

^{EMAIL : sales@jpegroup.com}

MANAGEMENT

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

^{1) LIM BOON WAN, SINGAPOREAN}

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

^{CEFOTECH PTE LTD}

^{2) MANPRIT SINGH, SINGAPORE PERMANENT RESIDENT}

^{- HOLDS OTHER DIRECTORSHIPS 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

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.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE FELL BY 7.1% IN 1Q 2008 OVER 4Q 2007.

EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 6.5%.

AFTER SEASONAL ADJUSTMENT, DOMESTIC SALES ROSE BY 4.4% IN 1Q 2008 OVER 4Q 2007.

EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 2.7%.

ON A YEAR-ON-YEAR BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 26.5% OVER THE PREVIOUS YEAR. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 12.2%. AFTER REMOVING PRICE EFFECT, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 2.8% IN 1Q 2008 OVER 1Q 2007.

ON A QUARTER-OVER-QUARTER BASIS, MOST WHOLESALE SECTORS REPORTED LOWER DOMESTIC SALES AFTER RECORDING BRISK BUSINESS IN THE PREVIOUS QUARTER.

GENERAL WHOLESALE TRADE FELL BY 24.6% IN 1Q 2008, AFTER RECORDING HIGHER SALES OF 26.8% IN 4Q 2007. THE SALES OF TELECOMMUNICATIONS AND COMPUTERS, INDUSTRIAL AND CONSTRUCTION MACHINERY, AND HOUSEHOLD EQUIPMENT AND FURNITURE REPORTED LOWER SALES BY 13.3% 15.3% IN 1Q 2008.

DOMESTIC SALES OF PETROLEUM AND PETROLEUM PRODUCTS FELL BY 7.7% IN 1Q 2008 OVER 4Q 2007. AFTER ADJUSTING FOR PRICE CHANGES, SALES DECLINED BY 12.4%.

ON THE OTHER HAND, SHIP CHANDLERS AND BUNKERING, FOOD, BEVERAGES AND TOBACCO RECORDED HIGHER TURNOVER OF 8.8% AND 0.8% OVER THE PREVIOUS QUARTER RESPECTIVELY.

MAJORITY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 1Q 2008 OVER 1Q 2007.

THE GROWTH IN THE OVERALL DOMESTIC SALES WAS MAINLY CONTRIBUTED BY PETROLEUM AND

PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING, AND GENERAL WHOLESALE TRADE, WHICH REPORTED HIGHER SALES OF 42.9% TO 47.4%. AFTER ADJUSTING FOR PRICE CHANGES, THE TRADING VOLUME CHANGED MARGINALLY FOR PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING WHILE THE SALE VOLUME ROSE BY 27.8% FOR GENERAL WHOLESALERS.

OTHER SECTORS THAT RECORDED BETTER SALES INCLUDE TIMBER, PAINTS AND CONSTRUCTION MATERIALS (20.3%) CHEMICALS AND CHEMICAL PRODUCTS (8.7%) INDUSTRIAL AND CONSTRUCTION MACHINERY (7.6%) TRANSPORT EQUIPMENT (7.2%) AND FOOD, BEVERAGES AND TOBACCO (0.7%).

CONVERSELY, DOMESTIC SALES OF ELECTRONIC COMPONENTS FELL BY 10.9%, THE FIFTH CONSECUTIVE QUARTER OF DECLINE SINCE 1Q 2007. AFTER REMOVING PRICE CHANGES, SALES OF ELECTRONIC COMPONENTS FELL BY 3.6%. WHOLESALE VALUES OF TELECOMMUNICATIONS AND COMPUTERS, AND HOUSEHOLD EQUIPMENT AND FURNITURE ALSO DECLINED MARGINALLY IN 1Q 2008. AFTER REMOVING PRICE CHANGES, SALES OF THE TWO SECTORS ROSE COMPARED TO A YEAR AGO.

FOREIGN WHOLESALE TRADE INDEX

FOREIGN WHOLESALE TRADE SALES FELL MARGINALLY BY 0.6% IN 1Q 2008 OVER 4Q 2007.

EXCLUDING PETROLEUM, SALES FELL BY 2.4%.

AFTER SEASONAL ADJUSTMENT, FOREIGN SALES ROSE BY 5.6% OVER 4Q 2007. EXCLUDING PETROLEUM, SALES ROSE BY 5.2%.

ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE SALES ROSE BY 31.4% OVER 1Q 2007.

EXCLUDING PETROLEUM, SALES ROSE BY 18.3%. AFTER REMOVING PRICE EFFECT, OVERSEAS SALES ROSE BY 6.7% OVER 1Q 2007.

COMPARED TO 4Q 2007, THERE WAS MIXED PERFORMANCE IN FOREIGN SALES AMONG THE WHOLESALE SECTORS IN 1Q 2008.

FOOD, BEVERAGES AND TOBACCO WHOLESALERS REPORTED HIGHER OVERSEAS SALES OF 16.0% IN 1Q 2008 OVER 4Q 2007, THE LARGEST INCREASE AMONG ALL SECTORS. IT WAS FOLLOWED BY GENERAL WHOLESALE TRADE (9.4%) SHIP CHANDLERS AND BUNKERING (4.7%) AND WHOLESALING OF CHEMICALS AND CHEMICAL PRODUCTS (2.2%).

SALES OF PETROLEUM AND PETROLEUM PRODUCTS ROSE SLIGHTLY BY 1.3% IN 1Q 2008 OVER 4Q 2007. HOWEVER, AFTER ADJUSTING FOR PRICE CHANGES, THE SALES VOLUME FELL BY 3.8%.

CONVERSELY, FOREIGN SALES OF HOUSEHOLD EQUIPMENT AND FURNITURE, TELECOMMUNICATIONS AND COMPUTERS, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, TRANSPORT EQUIPMENT, INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS FELL IN 1Q 2008 OVER 4Q 2007.

COMPARED TO A YEAR AGO, SOME WHOLESALE SECTORS REPORTED DOUBLE-DIGIT GROWTHS IN FOREIGN SALES IN 1Q 2008 WHILE OTHERS FELL.

WHOLESALING OF FOOD, BEVERAGES AND TOBACCO CONTINUED TO RECORD HIGH GROWTH RATES IN FOREIGN SALES, WITH HIGHER TURNOVER OF 89.0% IN 1Q 2008 OVER A YEAR AGO. AFTER ADJUSTING FOR PRICES, SALES VOLUME ROSE BY 72.9% OVER A YEAR AGO.

WITH HIGHER FUEL PRICES. WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERINH REPORTED HIGHER FOREIGN SALES OF 49.2% AND 46.3% RESPECTIVELY OVER A YEAR AGO. AFTER REMOVING PRICE EFFECT, THE SALES VOLUME OF

PETROLEUM AND PETROLEUM PRODUCTS FELL BY 3.1% WHILE SALES VOLUME OF SHIP CHANDLERS AND BUNKERING HELD ITS LEVEL.

GENERAL WHOLESALE TRADE, CHEMICALS AND CHEMICAL PRODUCTS, TRANSPORT EQUIPMENT, AND

INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO REGISTERED STRONG SALES GROWTHS BETWEEN 10.5% TO 47.4%.

CONVERSELY, FOREIGN SALES DECLINED IN 1Q 2008 FOR HOUSEHOLD EQUIPMENT AND FURNITURE, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, ELECTRONIC COMPONENTS, AND

TELECOMMUNICATIONS AND COMPUTERS. THE SALES FELL BY 4.3% TO 8.7% FOR THESE SECTORS COMPARED TO 1Q 2007.

NEWS

MARCH RETAIL GROWTH FUELLED BY PETROL PRICES

THE VALUE OF PETROL SALES IN MARCH SOARED 39%, AS A RESULT OF RISING CRUDE OIL PRICES, EVEN THOUGH THE ACTUAL VOLUME WAS ONLY MARGINALLY HIGHER.

PETROL STATION SALES POSTED THE FASTEST GROWTH OF ALL RETAIL SEGMENTS IN MARCH, ACCORDING TO FIGURES THE DEPARTMENT OF STATISTICS RELEASED YESTERDAY.

PETROL SALES ROSE 28.2% IN FEBRUARY.

MOST RETAIL SEGMENTS POSTED HIGHER GROWTH MARCH AFTER A WEAKER SHOWING IN FEBRUARY FOR THE COMPUTERS, FURNITURE, OPTICAL GOODS AND BOOKS SEGMENTS. BUT MOTOR VEHICLES FELL 8.1% FROM MARCH 2007 AS A RESULT OF THE ESCALATING PETROL PRICES. CRUDE OIL HIT ALMOST US$127 A BARREL RECENTLY.

THE SUPERMARKET AND FOOD AND BEVERAGE SEGMENTS ALSO REPORTED LOWER SALES ACTIVITY THAN IN FEBRUARY, WITH FALLS OF 4.7% AND 11.9%, RESPECTIVELY.

OVERALL RETAIL SALES ROSE BY 5.6% COMPARED TO MARCH 2007. EXCLUDING MOTOR VEHICLES, SALES VOLUME ROSE BY 12.5%.

OCBC ECONOMIST SELENA LING NOTED THE RETAIL NUMBERS INDICATED RELATIVELY HEALTHY CONSUMER SPENDING. “THIS IS A TESTIMONY TO THE FACT THAT THE SINGAPOREAN ECONOMY IS STILL ENJOYING BROAD-BASED GROWTH DESPITE THE GLOBAL SLOWDOWN,” SHE SAID.

THE TOTAL VALUE OF RETAIL SALES IN MARCH WAS ESTIMATED AT S$2.89 BILLION, COMPARED WITH S$2.59 BILLION IN FEBRUARY.

OUTLOOK

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. THOSE DEALING IN TROPICAL PRODUCE, WEARING APPAREL AND FOOTWEAR, AND INDUSTRIAL MACHINERY AND EQUIPMENT ARE THE ONES EXPRESSING OPTIMISM.

A NET WEIGHTED BALANCE OF 29% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING SEPTEMBER 2008. SUPERMARKETS AND RETAILERS OF JEWWELLERY AND WATCHES EXPECT SLOWER BUSINESS AFTER THE FESTIVE PERIOD. 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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.42.82
UK Pound	1	Rs.80.01
Euro	1	Rs.63.83

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%)

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