ANNUAL REPORT

Middle East Development Singapore ltdannual report 2007 55NOTES TO FINANCIALSTATEMENTS30 June 20075. TRADE AND OTHER RECEIVABLES (Cont’d)Concentration of trade receivables customers:GroupCompany2007 2006 2007 2006$ $ $ $Top 1 customer 1,061,675 827,187 – –Top 2 customers 1,888,196 1,393,693 – –Top 3 customers 2,545,322 1,825,629 – –The average credit period generally granted to trade receivable customers of the Group is about 30 to 120 days (2006: 30 to 120days) excluding all items provided for.Current receivables with a short duration are not discounted and the carrying values are assumed to approximate the fair value.6. INVENTORIESGroup2007 2006$ $Finished goods 519,062 438,904Raw materials 412,333 297,618Contract work-in-progress 460,276 212,958Balance at end of year 1,391,671 949,480Contract work-in-progress comprises:Group2007 2006$ $Aggregate amount of costs incurred and recognised profits (less recognised losses)to date on uncompleted contracts 2,891,071 1,304,755Less progress payments received and receivable to date (2,497,722) (1,145,027)Net amount due from contract customers at end of year 393,349 159,728Included in the accompanying balance sheet as follows:As an asset under inventories 460,276 212,958As a liability under trade payables (Note 12) (66,927) (53,230)393,349 159,728Contract retention receivables as an asset under trade receivables 918,025 884,354