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consignment basis. If not for these inventories, our average inventory turnover days would haveimproved from 156 days in FY 2002 to 143 days in FY 2003 brought about by goods purchased foronward sales to our associated companies at the end of FY 2002 in view of the opening of the GNCretail outlets in Malaysia. In addition, given that the level of our operations has increased rapidly,management has put in concerted efforts to reduce the inventory level held by our Group inSingapore by monitoring the level of purchases against the level of inventory held and its respectiveturnover period on a more regular basis. In order to ensure a more ef®cient ordering process and tobetter manage our inventory level, our Group is implementing an automated ordering system whichwill trigger a purchase order once the respective inventory level has reached its minimum requiredquantity.For the period under review, we have not experienced any signi®cant stock obsolescence. Theaverage shelf life of our products is 2.5 years.On 1 October 2003, Victoria House entered into an agreement with Sembcorp LogisticsLtd to outsource its warehouse and logistics functions to the latter. The services to be provided bySembcorp Logistics include but are not limited to the following:±(i) order receiving, repacking and distribution services to our outlets in Singapore;(ii) order picking and re-packaging services for export distribution; and(iii) stocktaking services.Our Directors believe that the outsourcing of our warehouse and logistics functions will enableour management to focus their resources on our core activities and areas of strength which help togenerate revenue for us. Following such outsourcing exercise, our warehouse and delivery staffreduced from 30 as at 31 March 2003 to 2 as at 1 October 2003.INTELLECTUAL PROPERTY RIGHTSAs a GNC franchisee and in accordance with the Franchise Agreements with GNC Inc, we use the``GNC'' trademarks in our ordinary course of business. In addition, we also use the trademarks ofthird party international brands in our advertisements and on the relevant third party internationalbrand products we distribute and/or sell.As at the Latest Practicable Date, the trade marks in relation to our proprietary L.A.C. range ofproducts and which Nutri-Active is registered proprietor or have applied for registration are:±RegisteredRegistrationDescriptionLogoRenewal Date CountryDate1 L.A.C. 12-12-1997 12-12-2007 Singapore2 Face-Lift 25-05-1998 25-05-2008 Singapore3 Carrot-i andDevice25-05-1998and20-11-200225-05-2008and20-11-2012Singapore76