TT International 2011 Annual Report

Corporate Information
Board of Directors
: Sng Sze Hiang Tong Jia Pi Julia Yap Hock Soon Raymond Koh Bock Swi Ng Leok Cheng Yo Nagasue
Chairman and CEO Executive Director Executive Director Independent Director Independent Director Independent Director
Audit Committee
: Raymond Koh Bock Swi (Chairman) Ng Leok Cheng Yo Nagasue : Yo Nagasue (Chairman) Ng Leok Cheng Raymond Koh Bock Swi Tong Jia Pi Julia : Ng Leok Cheng (Chairman) Raymond Koh Bock Swi Yo Nagasue Tong Jia Pi Julia : Sng Sze Hiang (Chairman) Tong Jia Pi Julia Yap Hock Soon : Koh Sock Tin, CPA : M&C Services Private Limited 138 Robinson Road #17-00 The Corporate Office Singapore 068906 : 47 Sungei Kadut Avenue Singapore 729670 Tel: 6793 0110 Fax: 6668 0797 : KPMG LLP Public Accountants and Certified Public Accountants 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 Partner-in-charge: Adrian Tan (commencing FYE 31 March 2011)
Nominating Committee
Remuneration Committee
Executive Committee
Company Secretary Registrars and Transfer Office
Registered Office
Auditors
Corporate Governance Report

TT International Limited (the Company) is committed to ensure that the highest standards of corporate governance are practised throughout the Company and its subsidiaries, as a fundamental part of its responsibilities to protect and enhance shareholder value. In compliance with the Listing Manual of the Singapore Exchange Securities Trading Limited (SGX-ST), the following report describes the Companys corporate governance practices with specific reference to the revised Code of Corporate Governance, which was issued in July 2005 (the 2005 Code). The Board will review these practices from time to time to ensure that they address the specific needs of business demands and circumstances and evolving corporate governance issues. Each section of the Code is classified into Principles and Guidance Notes. The Company recognises and supports the Principles and the spirit of the Code. The Guidance Notes will serve to guide the Company in this aspect and the Company is committed in complying with the substance and spirit of the Principles of the Code.
Boards Conduct of its Affairs Principle 1: Effective Board to lead and control the Company
The Boards primary role is to protect and enhance long-term shareholder value. It sets the corporate strategy and directions of the Group and ensures effective management leadership and proper conduct of the Groups business by supervising the executive management. The Board has established a number of committees to assist in the execution of the Boards responsibilities. These committees include an Audit Committee (AC), an Executive Committee, a Nominating Committee (NC) and a Remuneration Committee (RC). Matters which require the approval of the Board for decision include corporate strategy, periodic results announcements, audited financial statements, proposal of final dividends and authorisation of major and interested person transactions. Other matters are delegated by the Board to committees which the Board monitors. The Board has adopted a set of internal controls which sets out approval limits for capital expenditures, investments and divestments and bank borrowings at Board level. To ensure efficient and effective running of the business, approval sub-limits are set for the Executive Committee which comprises the executive directors of the Company. The Board conducts regular scheduled meetings. When circumstances require, ad-hoc meetings are arranged or exchange of views are held outside the formal environment of Board meetings. Board meetings are conducted in Singapore and tele-conferencing is used when necessary. The Directors attendance at Board and Board Committee meetings held for the year ended 31 March 2011 are disclosed below. Board Meetings 4 5 5 5 2 5 5 Audit Committee Meetings 5 5 2 5 Nomination Committee Meeting 1 1 1 1 1 Remuneration Committee Meetings 2 2 2 1 2
Name of Director Sng Sze Hiang Tong Jia Pi Julia Raymond Koh Bock Swi Ng Leok Cheng Yo Nagasue Yap Hock Soon No. of meetings held
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To ensure that the directors keep pace with regulatory changes that have important bearing on the Companys or directors disclosure obligations, the directors are briefed on such changes during Board meetings or specially-convened sessions by professionals. All directors are also updated regularly concerning any changes in the Companys major policies. The non-executive directors are also welcome to request further explanations, briefings or informal discussions on any aspect of the Companys operations or business issues from the management. The executive directors will make the necessary arrangements for the briefings, informal discussions or explanations required. Newly-appointed directors are briefed by management on the business activities of the Group and its strategic directions. All directors are also provided with relevant information on the Companys policies and procedures relating to governance issues including disclosure of interests in securities, prohibitions on dealings in the Companys securities and restrictions on disclosure of price sensitive information.
Board Composition and Balance Principle 2: Strong and independent element on the Board
The Board consists of three non-executive independent directors and three executive directors. The independence of each director is reviewed annually by the NC. The NC adopts the Codes definition of what constitutes an independent director in its review. As a result of the NCs review of the independence of each director, the NC is of the view that the non-executive directors of the Company are independent directors and further, no individual or small group of individuals dominate the Boards decision making process. The Board reviews the size of the Board on an annual basis, and considers the present Board size as appropriate for the current scope and nature of the Groups operations. The NC is of the view that the current Board comprises persons who as a group, provide core competencies necessary to meet the Groups targets. The NC is also of the view that the current board size of six directors is appropriate, taking into account the nature and scope of the Groups operations. Key information regarding the directors and key management personnel of the Group is set out in the section Profile of Directors and Key Management Personnel on pages 19 to 20.
Role of Chairman and Chief Executive Officer Principle 3: Clear division of responsibilities at the Board level to ensure a balance of power and authority
Mr. Sng Sze Hiang serves as both the Companys Chairman and Chief Executive Officer (CEO). As the independent directors formed half of the composition of the Board, the Company believes that there is a good balance of power and authority within the Board and no individual or small group can dominate the Boards decision-making process. In addition, the independent directors have demonstrated their commitment in their role and are expected to act in good faith and in the interest of the Company. In addition, the AC, NC and RC are chaired by independent directors.
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The Chairman and CEO, being the most senior executive in the Company, bears executive responsibility for the Companys business, and for the workings of the Board. The Chairman and CEO ensures that Board meetings are held when necessary and sets the Board meeting agenda in consultation with the directors. The Chairman and CEO reviews Board papers before they are presented to the Board and ensures that Board members are provided with accurate, timely and clear information. As a general rule, Board papers are sent to directors in advance in order for directors to be adequately prepared for the meeting. Management staff who have prepared the papers, or who can provide additional insight into the matters to be discussed, are invited to present the paper or attend at the relevant time during the Board meeting. The Chairman and CEO monitors communications and relations between the Company and its shareholders, between the Board and Management, and between independent and non-independent directors, with a view to encourage constructive relations and dialogue amongst them. The Chairman and CEO works to facilitate the effective contribution of non-executive directors. He is also responsible for ensuring compliance with the Companys guidelines on corporate governance.
Board Membership Principle 4: Formal and transparent process for appointment of new Directors
The NC is set up to assist the Board on all Board appointments and re-appointments and to assess the effectiveness of the Board as a whole and the contribution of each director. The Chairman of the NC, Mr. Yo Nagasue, is an independent director. There are three other members in the NC: Mr. Raymond Koh Bock Swi, Independent Director Mr. Ng Leok Cheng, Independent Director Ms. Tong Jia Pi Julia, Executive Director
The main terms of reference of the NC are: (1) (2) make recommendations to the Board on new appointments to the Board; make recommendations to the Board on the re-nomination of retiring directors standing for reelection at the Companys annual general meeting, having regard to the directors contribution and performance; determine annually whether or not a director is independent; review the size and composition of the Board with the objective of achieving a balanced Board in terms of the mix of experience and expertise; formulate and implement a succession plan for directors and senior management; decide on how the Boards performance may be evaluated and recommend objective performance criteria to the Board; and assess the effectiveness of the Board as a whole and the contribution by each individual director to the effectiveness of the Board.
(3) (4) (5) (6) (7)
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Board Performance Principle 5: Formal assessment of the effectiveness of the Board as a whole and performance of individual directors
The NC is delegated with the responsibilities of assessing the effectiveness of the Board as a whole and the contribution by each director to the effectiveness of the Board, with inputs from the Chairman & CEO. On an annual basis, the NC will assess each directors contribution to the Board. The assessment parameters include attendance record at meetings of the Board and Board committees, intensity and quality of participation at meetings and special contributions. Objective performance criteria used to assess the performance of the Board include both quantitative and qualitative criteria, such as revenue and profit growth, return on equity, the success of the strategic and long-term objectives set by the Board, and the effectiveness of the Board in monitoring managements performance against the goals that have been set by the Board. The NC is also responsible for determining annually, the independence of directors. In doing so, the NC takes into account the circumstances set forth in Guideline 2.1 of the 2005 Code and any other salient factors. Following its annual review, the NC has endorsed the following independence status of the directors: Mr. Sng Sze Hiang (Non-independent) Ms. Tong Jia Pi Julia (Non-independent) Mr. Raymond Koh Bock Swi (Independent) Mr. Ng Leok Cheng (Independent) Mr. Yo Nagasue (Independent) Mr. Yap Hock Soon (Non-independent)
Access to Information Principle 6: Board members to have complete, adequate and timely information
To assist the Board in the discharge of its duties, the management provides the Board with periodic accounts of the Company and the Groups financial performance and position. The directors receive Board papers in advance of Board and Committee meetings and have separate and independent access to the Companys senior management and company secretary. There is a procedure whereby any director may in the execution of his duties, take independent professional advice. The company secretary attends all Board meetings and is responsible to ensure that Board procedures are followed. It is the company secretarys responsibility to ensure that the Company complies with the requirements of the Companies Act. Together with the other management staff, the company secretary is responsible for compliance with all other rules and regulations which are applicable to the Company.
Remuneration Committee (RC) Procedures for Developing Remuneration Policies Principle 7: Formal and transparent procedure for fixing the remuneration packages of directors Level and Mix of Remuneration Principle 8: Remuneration of directors should be adequate but not excessive
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Disclosure on Remuneration Principle 9: Disclosure on remuneration policy, level and mix of remuneration, and the procedure for setting remuneration
The RC is chaired by Mr. Ng Leok Cheng, an independent director. There are three other members in the RC: Mr. Raymond Koh Bock Swi, Independent Director Mr. Yo Nagasue, Independent Director Ms. Tong Jia Pi Julia, Executive Director
Out of four members of the RC, three of them are non-executive independent directors and they as well as the board of directors are of the view that Ms. Tong Jia Pi Julia, an executive director should remain a member of the RC as her valued contribution is important to the RCs decision making process. The main terms of reference of the RC are: (1) (2) (3) (4) (5) (6) make recommendations to the Board on the framework of remuneration for the directors and senior management of the Company and its subsidiaries; make recommendations to the Board on specific remuneration packages for each executive director and CEO (or executive of equivalent rank) of the Company and its subsidiaries; review all benefits and long-term incentive schemes (including share schemes) and compensation packages for the directors and senior management of the Company and its subsidiaries; review service contracts for the directors and senior management of the Company and its subsidiaries; administer the employees share option scheme (ESOS) and performance share plan (Share Plan) adopted by the Company; and review remuneration packages of group employees who are immediate family members (spouse, child, adopted child, step-child, sibling or parent) of any of the directors or substantial shareholders of the company.
The Groups remuneration policy is to provide competitive remuneration packages at market rates which reward successful performance and attract, retain and motivate directors and staff. The executive directors remuneration packages include a variable bonus element which is performance-related. The RC determines the remuneration of executive directors based on the performance of the Group and the individual. Non-executive directors are paid directors fees, subject to approval at the Annual General Meeting. Executive directors do not receive directors fees. The remuneration of the directors of the Company for the year ended 31 March 2011 is as follows:
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Name Sng Sze Hiang Tong Jia Pi Julia Raymond Koh Bock Swi Ng Leok Cheng Yo Nagasue Yap Hock Soon
Band S$500,000 to S$1,000,000 S$500,000 to S$1,000,000 Below S$250,000 Below S$250,000 Below S$250,000 Below S$250,000
Fees (%) 100.0 100.0 100.0
Salary (%) 55.9 52.0 90.6
Bonus (%) 12.7 11.8 7.2
Others (%) 31.4 36.2 2.2
The Group adopts a remuneration policy for staff comprising a fixed component and a variable component. The fixed component is in the form of a base salary. The variable component is in the form of a variable bonus that is linked to the performance of the individual companies in the Group and of the individual staff. Staff appraisals are conducted at least once a year. To align the interests of staff with that of the shareholders, the Company has also implemented the TT International Employees Share Option Scheme, and Performance Share Plan as another element of the variable component of the staff remuneration. The Company will seek the approval of independent shareholders prior to any granting of options and/or shares to the controlling shareholders of the Company. To date, the Company has not granted any options to directors, staff and the controlling shareholders. The Company is of the view that disclosure of the remuneration of key management staff who are not directors, will be detrimental to the Groups interest because of the very competitive nature of the industry the Group operates in. Other than the Companys executive director, Mr. Yap Hock Soon who is a brother-in-law of the Chairman and CEO, there are no other family members that are holding managerial position in the Group.
Accountability and Audit Principle 10: The Board is accountable to the shareholders while the management is accountable to the Board
The Board believes in conducting itself in ways that deliver the maximum sustainable value to the shareholders. In presenting the financial statements and periodic results announcements to the shareholders, it is the Boards aim to provide a balanced and comprehensive assessment of the Groups performance and prospects. The management provides the Board with periodic accounts of the Company and the Groups performance and position.
Audit Committee Principle 11: Establishment of an Audit Committee (AC) with written terms of reference
The AC comprises three members, all of whom are independent directors. The chairman of the AC is Mr. Raymond Koh Bock Swi and the other members of the AC are: Mr. Ng Leok Cheng Mr. Yo Nagasue
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The members of the AC have many years of experience in business management and finance. The Board considers that the members of the AC have sufficient financial management expertise and experience to discharge the ACs responsibilities. The main terms of reference of the AC are: (1) (2) (3) (4) (5) review the periodic results announcements and annual financial statements and submit to the Board for approval; recommend to the Board the appointment and re-appointment of auditors and their fees for shareholders approval; review with the external auditors the adequacy of internal control systems; review the audit plans and findings of the external auditors; and review transactions falling within the scope of the Listing Manual, in particular, matters pertaining to interested person transactions and acquisitions and realisations.
The AC: has full access to and co-operation from management as well as full discretion to invite any director or personnel to attend its meetings; has been given reasonable resources to enable it to complete its functions properly; and has reviewed findings and evaluation of the system of internal controls with external auditors.
The AC met a total of 5 times during the year ended 31 March 2011. The Executive Directors, Company Secretary and the external auditors normally attend the meetings. The AC, having reviewed the volume of non-audit services to the Group by the external auditors, and being satisfied that the nature and extent of such services will not prejudice the independence and objectivity of the external auditors, has recommended their re-nomination. The AC reviews the independence of the external auditors annually. In accordance to Rule 716 of The Singapore Exchange Securities Trading Limited with respect to the appointment of the different external auditors for different subsidiaries, the Audit Committee and the Board confirmed that they are satisfied that such arrangement would not compromise the standard and effectiveness of the external audit of the Company.
Internal Controls Principle 12: Sound system of internal controls

The Board is responsible for ascertaining that management maintains a sound system of internal controls to safeguard the shareholders investments and the Groups assets. The Board believes that the system of internal controls that has been maintained by management throughout the financial year is adequate to meet the needs of the Group in its current business environment. The system of internal controls is designed to manage rather than eliminate the risk of failure to achieve business objectives. It can only provide reasonable and not absolute assurance against material misstatement or loss.
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During the year, the AC, on behalf of the Board, has reviewed the effectiveness of the Groups material internal controls. The processes used by the AC to review the effectiveness of the system of internal control and risk management include: discussions with management on risks identified by management; the audit process; the review of external audit plans; and the review of significant issues arising from external audits.
Internal Audit Principle 13: Independent internal audit function

Currently, the Group does not have a separate department dedicated to carry out internal audit function. Its Corporate Control Department comprising several staff performs continuous monitoring and review to ensure compliance with the Groups policies, internal controls and procedures designed to manage risk and safeguard the business and assets of the Group. The reports arising from such reviews are reviewed by management and appropriate measures are implemented on which the AC is kept apprised of. The Board is of the opinion that the continuous monitoring and review by the Corporate Control staff is sufficient for the current needs of the Group. The Board will review the need for a separate internal audit department on an on-going basis, taking into account any changing circumstances.
Communication with Shareholders Principle 14: Regular, effective and fair communication with shareholders Greater Shareholder Participation Principle 15: Greater shareholder participation at annual general meetings
The Company believes in regular and timely communication with shareholders and it is the Boards policy to inform all shareholders on all major developments that has an impact on the Group. The Groups quarterly results are published through the SGXNET, news releases and the Companys website and Shareinvestor.com investor relations website. All information on the Companys new initiatives are disseminated via SGXNET and/or by a news release. Price sensitive information is first publicly released, either before the Company meets with any group of investors or analysts or simultaneously with such meetings. Results are announced and annual reports are issued within the mandatory period and are available on the Companys website, except where extensions have been granted by the relevant authorities. All shareholders of the Company receive the annual report and notice of general meetings. The notice is also advertised in newspapers and made available on the SGXNET. The Board regards the annual general meeting as an opportunity to communicate directly with shareholders and encourages participative dialogue. The members of the Board will attend the annual general meeting and are available to answer questions from shareholders present. Key management personnel and external auditors are also present to assist directors in addressing relevant queries by shareholders.
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Dealings in Securities
The Group has adopted an internal code to provide guidance to its directors and officers in relation to the dealings in the Companys securities. A system of reporting of security dealing to the company secretary by directors has been established to effectively monitor the dealings of these parties in the securities of the Company. In addition, a circular is issued before the start of each period to remind officers to refrain from dealing in the Companys securities during the period of two weeks prior to the release of the quarterly, or one month prior to the release of the year-end announcements of the Groups financial results.
Material Contracts
Save for the service agreements between the Executive Directors and the Company, there were no material contracts entered into by the Company and its subsidiaries involving the interest of the Chief Executive Officer, directors or controlling shareholders of the Company for the financial year ended 31 March 2011.
Interested Person Transactions

There were no interested person transactions with a value exceeding S$100,000 entered into by the Company and its subsidiaries for the financial year ended 31 March 2011.
Risk Management
The Group is continually reviewing and improving the business and operational activities to take into account the risk management perspective. This includes reviewing management and manpower resources, updating work flows, process and procedures to meet the current and future market conditions. The Group has also considered the various financial risk, details of which are found on pages 81 to 84 of the Annual Report.
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Prole of Directors and Key Management Personnel

DIRECTORS SNG SZE HIANG Chairman and CEO
Mr Sng is the Chairman, CEO and Founder of the Company. He is the Chairman of the Executive Committee and is responsible for the formulation of business policies, setting the directions and strategies of the Group as well as managing our overall business. He has over 26 years of experience in trading electrical and electronics products with emerging markets. Mr Sng holds a Certificate in Marine Communications from the Singapore Polytechnic.
TONG JIA PI JULIA Executive Director

Ms Tong is an Executive Director and co-founder of the Company. Ms Tong is a member of the Executive, Nominating and Remuneration Committees and has over 27 years trading experience in a wide range of consumer products in emerging markets. She is responsible for the administrative functions of the Group and in ensuring the efficiency of the Groups operations as well as corporate planning and implementation of business strategies. In addition, she is also involved in new business development. Ms Tong holds a Bachelor of Arts from the Institute of Education in Yangon, Myanmar.
YAP HOCK SOON Executive Director

Mr Yap was appointed as an Executive Director in December 2002 and is a member of the Executive Committee. He has over 20 years of experience in logistics management in the manufacturing and trading industry. He has been with the Group for more than 15 years. Prior to joining the Company, he was the Regional Project Manager for MHE Demag. Mr Yap holds a Masters of Science (Engineering) from University of Newcastle upon Tyne, United Kingdom.
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Prole of Directors and Key Management Personnel

INDEPENDENT DIRECTORS KOH BOCK SWI, RAYMOND Independent Director
Mr Koh was appointed as an Independent Director in May 2000. He is the Chairman of the Audit Committee and is a member of both the Nominating and Remuneration Committees. Mr Koh has over 30 years of experience in banking and has retired in March 2008. Mr Koh graduated from the University of Singapore with a Bachelor of Business Administration.
NG LEOK CHENG Independent Director

Mr Ng was appointed as an Independent Director in May 2000. He is the Chairman of the Remuneration Committee and is a member of the Audit and Nominating Committees. Mr Ng is currently the Managing Director of Datapulse Technology Limited. Mr Ng holds an Honours degree in Business Administration from National University of Singapore.
YO NAGASUE Independent Director

Mr Nagasue was appointed as an Independent Director in October 2002. He is the Chairman of the Nominating Committee and is a member of the Audit and Remuneration Committees. Mr Nagasue served with TDK Japan and TDK Australia for more than 20 years and his last appointment held was Managing Director in TDK (Australia) Pty Ltd. Mr Nagasue holds a Bachelor of Economics from Gakushuin University, Tokyo, Japan.
KEY MANAGEMENT PERSONNEL GOH CHONG THENG Finance Director/CFO

Mr Goh was appointed as Finance Director/Chief Financial Officer of the Company in June 2010 and is a member of the Executive Committee. He is responsible for the accounts, finance and control functions with special focus on fund raising exercises for the Group. He has more than 30 years of experience as a senior corporate/investment banker for some of the large international banks operating in Singapore and the region. In the last four years prior to joining the Company, he had CEO responsibility for the business and support functions of the bank in Singapore and SEA regional offices. Mr Goh holds a Masters of Business Administration from McGill University in Montreal, Canada.
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Directors Report
We are pleased to submit this annual report to the members of the Company together with the audited financial statements for the financial year ended 31 March 2011.
Directors
The directors in office at the date of this report are as follows: Sng Sze Hiang Tong Jia Pi Julia Raymond Koh Bock Swi Ng Leok Cheng Yo Nagasue Yap Hock Soon
Directors interests
According to the register kept by the Company for the purposes of Section 164 of the Singapore Companies Act, Chapter 50 (the Act), particulars of interests of directors who held office at the end of the financial year in shares in the Company and in related corporations, other than wholly owned subsidiaries, are as follows: Shareholdings in which the director has a direct interest At beginning At end As at of the year of the year 21 April 2011 Name of director and corporation in which interests are held The Company Ordinary shares Sng Sze Hiang^@ Tong Jia Pi Julia^ Raymond Koh Bock Swi Ng Leok Cheng Yap Hock Soon*>
@
255,963,583 100,454,245 195,000 195,000 1,628,000
255,963,583 100,454,245 195,000 195,000 1,628,000
255,963,583 100,454,245 195,000 195,000 1,628,000
Include shares held in the name of Sng Sze Hiangs nominee Include shares held in the name of Yap Hock Soons wife Tong Jia Pi Julia is the wife of Sng Sze Hiang. Yap Hock Soon is the brother-in-law of Sng Sze Hiang.
131,000,000 688,000
131,000,000 688,000
131,000,000 688,000
>
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Directors Report
By virtue of Section 7 of the Companies Act, Chapter 50, Sng Sze Hiang and Tong Jia Pi Julia are deemed to have interests in those subsidiaries of the Company, which are wholly-owned by the Company or the Group, at the beginning and at the end of the financial year and in the following subsidiaries which are not wholly-owned by the Group: Shareholdings in which the director is deemed to have an interest At beginning At end of the year of the year Related Corporations T.T. International Limited Ordinary shares of MMK1,000 each Sng Sze Hiang Tong Jia Pi Julia T.T. Electrical Electronics Corporation (M) Sdn. Bhd. Ordinary shares of RM1 each Sng Sze Hiang Tong Jia Pi Julia Akira Middle East L.L.C Ordinary shares of AED1,000 each Sng Sze Hiang Tong Jia Pi Julia TTC Sales and Marketing (SA) (Proprietary) Limited Ordinary shares of ZAR1 each Sng Sze Hiang Tong Jia Pi Julia ITL (Middle East) L.L.C Ordinary shares of AED1,000 each Sng Sze Hiang Tong Jia Pi Julia AIMS Trading (Private) Limited Ordinary shares of LKR10 each Sng Sze Hiang Tong Jia Pi Julia Akira Electric Corporation Holdings Ltd Ordinary shares of BAHT100 each Sng Sze Hiang Tong Jia Pi Julia Athletic AGD Sp. z.o.o. Ordinary shares of PLN500 each Sng Sze Hiang Tong Jia Pi Julia
533 533
533 533
3,000,000 3,000,000
3,000,000 3,000,000
147 147
147 147
420,292 420,292
420,292 420,292
147 147
147 147
1,320,000 1,320,000
1,320,000 1,320,000
490 490
490 490
1,020 1,020
1,020 1,020
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Directors Report
Shareholdings in which the director is deemed to have an interest At beginning At end of the year of the year Related Corporations Athletic International S.A. Ordinary shares of PLN1 each Sng Sze Hiang Tong Jia Pi Julia A & D Sp. z.o.o. Ordinary shares of PLN500 each Sng Sze Hiang Tong Jia Pi Julia A-Beyond Tex Sp. z.o.o. Ordinary shares of PLN100 each Sng Sze Hiang Tong Jia Pi Julia Brahma (Polska) Sp. z.o.o. Ordinary shares of PLN500 each Sng Sze Hiang Tong Jia Pi Julia Athletic Manufacturing Sp. z.o.o. Ordinary shares of PLN50 each Sng Sze Hiang Tong Jia Pi Julia TTA Holdings Ltd Ordinary shares Sng Sze Hiang Tong Jia Pi Julia TEAC Australia Pty Ltd Ordinary shares Sng Sze Hiang Tong Jia Pi Julia Akira Iberia Ordinary shares Sng Sze Hiang Tong Jia Pi Julia 1,020 1,020 3,000,000 3,000,000 3,000,000 3,000,000 117,500,000 117,500,000 117,500,000 117,500,000 64,000 64,000 64,000 64,000 156 156 156 156 1,560 1,560 1,560 1,560 480 480 480 480 5,728,422 5,728,422 5,728,422 5,728,422
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Directors Report
Except as disclosed in this report, no director who held office at the end of the financial year had interests in shares, debentures, warrants or share options of the Company, or of related corporations, either at the beginning or at the end of the financial year. Except as disclosed under the Share Options section of this report, neither at the end of, nor at any time during the financial year, was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate. Except for salaries, bonuses, fees and benefits that are disclosed in note 28 to the financial statements, since the end of the last financial year, no director has received or become entitled to receive, a benefit by reason of a contract made by the Company or a related corporation with the director, or with a firm of which he is a member, or with a company in which he has a substantial financial interest.
Share options
The TT International Employees Share Option Scheme (the Option Scheme) and the TT International Performance Share Plan (the Share Plan) of the Company were approved and adopted by its members at an Extraordinary General Meeting held on 8 August 2002. The Option Scheme and Share Plan are administered by the Remuneration Committee, comprising four directors, Ng Leok Cheng (Chairman), Raymond Koh Bock Swi, Yo Nagasue and Tong Jia Pi Julia. Other information regarding the Option Scheme and the Share Plan are set out below: (i) Option Scheme The Remuneration Committee shall have the absolute discretion to grant the options with a subscription price at no discount, or at a discount of up to a maximum of 20% of the market price, being the average of the last dealt price of the Companys shares on the Singapore Exchange Trading Limited (SGX-ST) on the five market days immediately preceding the date of grant of such options. Subject to the rules and such other conditions as may be imposed by the Remuneration Committee from time to time, the options granted are exercisable in whole or in part at any time: (a) after the first anniversary of the date of grant of the option if the subscription price of the option granted was at market price; and after the second anniversary of the date of grant of the option if the subscription price of the option granted was at a discount to the market price,
(b)
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Directors Report
provided always that an option that is granted to an eligible employee shall be exercised before the tenth anniversary of the date of grant of the option and an option which is granted to a non-executive director shall be exercised before the fifth anniversary of the date of grant of that option. The options granted by the Company do not entitle the holders of the options, by virtue of such holding, to any rights to participate in any share issue of any other company.
(ii)
Share Plan The Remuneration Committee may award an eligible participant with fully paid shares in the Company, their equivalent cash value or combinations thereof, free of charge, upon the participant achieving prescribed performance target(s). There are no vesting periods beyond the performance achievement periods.
The total number of shares issued and issuable in respect of all options and awards pursuant to the Option Scheme and Share Plan shall not exceed 15% of the total issued share capital of the Company on the day preceding the relevant date of the option or award. Since the commencement of the Option Scheme and Share Plan: (i) no options have been granted pursuant to the Option Scheme to any person to take up unissued shares in the Company or its subsidiaries; no shares in the Company have been awarded to any person pursuant to the Share Plan; and no shares have been issued by virtue of any exercise of option to take up unissued shares of the Company or its subsidiaries.
(ii) (iii)
As at the end of the financial year, there were no unissued shares of the Company and its subsidiaries under option.
Audit committee
The members of the Audit Committee during the financial year and at the date of this report are: Raymond Koh Bock Swi Ng Leok Cheng Yo Nagasue (Chairman)
The Audit Committee has held four meetings since the last directors report. Specific functions of the Audit Committee include reviewing the scope of work of the external auditors, and receiving and considering the auditors reports. The Audit Committee also recommends the appointment of the external auditors and reviews the level of audit fees.
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Directors Report
In addition, the Audit Committee has, in accordance with Chapter 9 of the Singapore Exchange Listing Manual, reviewed the requirements of approval and disclosure of interested person transactions, reviewed the internal procedures set up by the Company to identify and report and where necessary, seek approval for interested person transactions and reviewed interested person transactions. The Audit Committee is satisfied with the independence and objectivity of the external auditors and has recommended to the Board of Directors that the auditors, KPMG LLP, be nominated for re-appointment as auditors at the forthcoming Annual General Meeting of the Company.
Auditors
The auditors, KPMG LLP, have indicated their willingness to accept re-appointment.
On behalf of the Board of Directors
Sng Sze Hiang Director
Tong Jia Pi Julia Director 1 September 2011
26
Statement by Directors
The Company is being restructured under a Scheme of Arrangement (the Scheme) sanctioned by the Court of Appeal in Singapore on 13 October 2010, with an effective date of 19 April 2010. At the date of this statement, the process of ascertaining the amounts of the claims of certain related party creditors is still on-going. In addition, there are claims that are currently contingent in nature, for which the amounts have not yet been determined. The ability of the Group and the Company to continue in operation in the foreseeable future and to meet their financial obligations as and when they fall due depend on the matters set out in note 2 to the financial statements. The directors consider that different possibilities regarding the future exist and that the differing outcomes can cause the financial position as at 31 March 2011, together with profit or loss, other comprehensive income and changes in equity for the year then ended, to be very different from what is currently presented in the financial statements. The directors also consider that there are no practical means available to resolve such difficulties, due to the effect of such differing outcomes, in the preparation of these financial statements. Accordingly, the directors are of the opinion that, notwithstanding these difficulties, the preparation of these financial statements on a going concern basis provides sufficient information to serve the interests of shareholders and other stakeholders who may use these financial statements. Further details on the basis of preparation of these financial statements are set out in note 2 to the financial statements. In our opinion: (a) having regard to and taking into consideration the matters disclosed in the financial statements, in particular note 2 to the financial statements, the financial statements set out on pages 30 to 88 are drawn up so as to give a true and fair view of the state of affairs of the Group and of the Company as at 31 March 2011 and the results, changes in equity and cash flows of the Group for the year ended on that date in accordance with the provisions of the Singapore Companies Act, Chapter 50 and Singapore Financial Reporting Standards; and at the date of this statement, subject to the matters referred to in note 2 to the financial statements, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due.
(b)
The Board of Directors has, on the date of this statement, authorised these financial statements for issue. On behalf of the Board of Directors
Sng Sze Hiang Director
Tong Jia Pi Julia Director 1 September 2011
27
Members of the Company TT International Limited
Independent Auditors Report
Report on the financial statements

We were engaged to audit the accompanying financial statements of TT International Limited (the Company) and its subsidiaries (collectively, the Group), which comprise the balance sheets of the Group and the Company as at 31 March 2011, the income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows of the Group for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 30 to 88. Managements responsibility for the financial statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Singapore Companies Act, Chapter 50 (the Act) and Singapore Financial Reporting Standards, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair profit and loss accounts and balance sheets and to maintain accountability of assets. Auditors responsibility Our responsibility is to express an opinion on these financial statements based on conducting the audit in accordance with Singapore Standards on Auditing. Because of the matters described in the Basis for disclaimer of opinion paragraphs, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Basis for disclaimer of opinion The Group incurred a net loss of $37,138,000 for the year ended 31 March 2011. In addition, as at 31 March 2011, the Group and the Company had negative shareholders equity of $96,936,000 and $121,955,000, respectively, and the Groups current liabilities exceeded its current assets by $13,967,000. These factors, together with the matters described below, indicate the existence of a material uncertainty which may cast significant doubt about the Groups and the Companys ability to continue as a going concern. The Company is being restructured under a Scheme of Arrangement (the Scheme) sanctioned on 13 October 2010 by the Court of Appeal in Singapore. The Groups and the Companys ability to continue as a going concern is dependent on the success of the restructuring, the profitability of future operations and the ability to secure financing as and when required. The status of implementation of the Scheme has also resulted in significant uncertainty in estimating: (i) the amounts at which assets and liabilities should be recorded as at 31 March 2011; and (ii) the accuracy and completeness of the prior year adjustments which the directors considered necessary for presentation in these financial statements.
28
Members of the Company TT International Limited
Independent Auditors Report
In addition, due to the on-going restructuring of the Company, the directors assessments of the valuation of the Companys investments in subsidiaries and the recoverability of amounts due from its subsidiaries are subject to significant uncertainty. The above and other matters are discussed in greater detail in note 2 (and other notes) to these financial statements. Disclaimer of opinion Because of the significance of the matters described in the Basis for disclaimer of opinion paragraphs, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the consolidated financial statements of the Group or the financial position of the Company.
Report on other legal and regulatory requirements

In our opinion, except for the effect of the matters described in the Basis for disclaimer of opinion paragraphs, the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.
KPMG LLP Public Accountants and Certified Public Accountants Singapore 1 September 2011
29
As at 31 March 2011
Balance Sheets
Group Note 2011 $000 2010 $000 (Restated) 123,399 6,777 15,652 2,957 4,097 152,882
Company 2011 2010 $000 $000 (Restated) 88,432 17,852 106,284 87,239 17,752 104,991
Non-current assets Property, plant and equipment Investment properties Subsidiaries Intangible assets Other investments Deferred tax assets
5 6 7 8 9 10
124,148 7,979 14,735 2,492 3,725 153,079
Current assets Inventories Trade and other receivables Cash and cash equivalents
11 12 13
51,836 89,296 15,912 157,044
74,411 120,403 11,139 205,953 358,835
19 104,366 244 104,629 210,913
19 136,019 358 136,396 241,387
Total assets Equity Share capital Reserves Equity attributable to owners of the Company Non-controlling interests Total equity Non-current liabilities Financial liabilities Other payables Deferred tax liabilities
310,123
14 15
140,563 (237,499) (96,936) 691 (96,245)
140,563 (210,500) (69,937) 3,690 (66,247)
140,563 (262,518) (121,955) (121,955)
140,563 (240,992) (100,429) (100,429)
16 10
235,202 155 235,357
3,103 739 174 4,016
251,895 251,895
301 301
Current liabilities Trade and other payables Financial liabilities Provisions Current tax payable
18 16 17
134,517 30,075 3,668 2,751 171,011
109,358 305,939 3,133 2,636 421,066 425,082 358,835
78,591 209 2,142 31 80,973 332,868 210,913
68,716 270,481 2,142 176 341,515 341,816 241,387
Total liabilities Total equity and liabilities
406,368 310,123
The accompanying notes form an integral part of these financial statements.
30
Year ended 31 March 2011
Consolidated Income Statement
Note
2011 $000 426,452 295 426,747 (22,575) (328,952) (33,446) (6,023) (139,691) (103,940) 75,862 (9,232)
Revenue Other operating income Changes in inventories of finished goods Purchase of goods Staff costs Depreciation Other operating expenses (Loss)/Profit from operations Finance income Finance expense Net finance income/(expense) (Loss)/Profit before income tax Income tax credit/(expense) Loss for the year Attributable to: Owners of the Company Non-controlling interests Loss for the year 20
2010 $000 (Restated) 539,860 43,031 582,891 (9,090) (420,984) (39,752) (6,955) (96,674) 9,436 1,660 (7,599) (5,939) 3,497 (4,217) (720)
66,630 (37,310) 172 (37,138)
21 19
(33,963) (3,175) (37,138) 2011 Cents
450 (1,170) (720) 2010 Cents 0.06
Earnings per share Basic and diluted
22
(4.16)
31
Consolidated Statement of Comprehensive Income
Note
2011 $000
2010 $000 (Restated) (720) 1,382 4,556 (9,478) 3,550 10 (710)
Loss for the year Changes in fair value of available-for-sale investments Reclassification of impairment loss on available-for-sale investments to income statement Translation differences relating to financial statements of foreign subsidiaries Net surplus on revaluation of property, plant and equipment Income tax on other comprehensive income Other comprehensive income for the year, net of income tax Total comprehensive income for the year Total comprehensive income attributable to: Owners of the Company Non-controlling interests Total comprehensive income for the year
(37,138) 665 2,573 4,201 7,439 (29,699)
(26,999) (2,700) (29,699)
(257) (453) (710)
32
Note 140,563 54 18,526 (17,250) (210,648) (68,755) 4,316 (64,439)
Group
Share capital $000
Capital reserves $000
Fair value and revaluation reserves $000 Accumulated profits/ (losses) $000 Total equity $000 Noncontrolling interests $000
Foreign currency translation reserve $000
Total attributable to equity holders of the Company $000
At 1 April 2009
Total comprehensive income for the year Loss for the year, as previously reported Prior year adjustments 29 450 450 (1,170) (4,120) 4,570 (4,120) 4,570 (1,170) (5,290) 4,570 (720)
Profit/(Loss) for the year, as restated
1,382
1,382
1,382
(2,678) (3,649) (2,618) (925) 9,488 (10,195) 450 2,678 3,649 2,618 9,488 (10,195) 3,550 (10,195) (10,195) 3,550 (707) (257) (925)
4,556
4,556
717 717 (453)
4,556 (9,478) 3,550 10 (710) (925)
Other comprehensive income Changes in fair value of available for-sale investments Reclassification of impairment loss on available-for-sale investments to income statement Translation differences relating to financial statements of foreign subsidiaries Net surplus on revaluation of property, plant and equipment
Total other comprehensive income
Total comprehensive income for the year, as restated Realisation of fair value reserves upon liquidation of subsidiaries Disposal of property, plant and equipment Disposal of investment properties
Transactions with owners, recorded directly in equity Distributions to owners Dividend payments to non-controlling interest of subsidiaries 140,563 54 19,069
(28,370)
(201,253)
(69,937)
(173) (173) 3,690
(173) (173) (66,247)
Total distributions to owners
Consolidated Statement of Changes in Equity
At 31 March 2010, as restated
33
34
Note Share capital $000 Capital reserves $000 Fair value and revaluation reserves $000 Accumulated profits/ (losses) $000 Total equity $000 Noncontrolling interests $000 Foreign currency translation reserve $000 Total attributable to equity holders of the Company $000 29 140,563 54 19,069 (28,370) (201,253) (69,937) 3,690 (66,247) 140,563 54 19,069 (28,370) (205,823) 4,570 (74,507) 4,570 3,690 (70,817) 4,570 (33,963) (33,963) (3,175) (37,138) 4,866 2,098 (33,963) 4,866 2,098 4,201 4,201 6,964 (26,999) 2,098 2,098 665 665 475 475 (2,700) 665 2,573 4,201 7,439 (29,699) 140,563 54 23,935 (26,272) (235,216) (96,936) (299) (299) 691 (299) (299) (96,245)
Group
At 1 April 2010, as previously stated Prior year adjustments
At 1 April 2010, as restated
Total comprehensive income for the year Loss for the year
Other comprehensive income Changes in fair value of available-for-sale investments Translation differences relating to financial statements of foreign subsidiaries Net surplus on revaluation of property, plant and equipment
Total other comprehensive income
Total comprehensive income for the year
Transactions with owners, recorded directly in equity Distributions to owners Dividend payments to non-controlling interest of subsidiaries
Total distributions to owners
Consolidated Statement of Changes in Equity
At 31 March 2011
Consolidated Statement of Cash Flows
Note Operating activities Loss for the year Adjustments for: (Gain)/Loss on disposal of property, plant and equipment Loss on disposal of investment properties Gain on disposal of available-for-sale investments Impairment loss on goodwill Impairment loss on available-for-sale investments Loss on liquidation of subsidiaries Changes in fair value of investment properties Depreciation and amortisation Additional provision for potential liabilities arising from disputed contingent claims as defined under the Scheme of Arrangement and other Scheme-related expenses Finance income Finance expense Income tax (credit)/expense Unrealised exchange loss/(gain) Operating (loss)/profit before changes in working capital Changes in working capital: Inventories Trade and other receivables Trade and other payables Bills payable and trust receipts Provisions Deposits from customers Cash generated from operations Income tax refunded/(paid) Interest income received Interest paid on bills payable and trust receipts Net cash from/(used in) operating activities Investing activities Purchase of property, plant and equipment and intangible assets Net proceeds from disposal of property, plant and equipment Net proceeds from disposal of investment properties Proceeds from disposal of available-for-sale investments Proceeds from liquidation of subsidiaries, net of cash Net cash (used in)/from investing activities Financing activities Dividend payments to non-controlling interests of subsidiaries Interest paid on borrowings Proceeds from interest-bearing borrowings Proceeds from finance leases Repayment of debts under the Reverse Dutch Auction of the Scheme of Arrangement Repayment of interest-bearing borrowings Payment of obligations under finance leases Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 April Effect of foreign exchange rate changes on balances held in foreign currencies Adjustments for bank overdrafts and other liabilities admitted as Scheme Creditors Cash and cash equivalents at 31 March
2011 $000 (37,138) (23) (1,204) 861 (1,430) 6,079 63,000 (75,862) 9,232 (172) 7,291 (29,366) 18,410 25,049 7,424 4,618 535 2,369 29,039 166 687 (5,361) 24,531 (3,843) 992 2,334 (517) (299) (5,728) 535 126 (14,750) (3,277) (372) (23,765) 249 (15,666) (423) 23,962 8,122
2010 $000 (Restated) (720) 3,282 636 4,556 2,964 (47) 7,013 (1,660) 7,599 4,217 (6,911) 20,929 (448) 5,693 (2,583) (24,376) 610 (1,268) (1,443) (1,156) 1,660 (1,107) (2,046) (9,333) 2,617 8,735 4,501 6,520 (173) (2,071) 1,399 98 (16,431) (695) (17,873) (13,399) (3,979) 1,712 (15,666)
24
13
35
Notes to the Financial Statements

These notes form an integral part of the financial statements. The financial statements were authorised for issue by the Board of Directors on 1 September 2011.
DOMICILE AND ACTIVITIES

TT International Limited (the Company) is incorporated in Singapore and has its registered office at 47 Sungei Kadut Avenue, Singapore 729670. The principal activities of the Company are those relating to trading and distribution of a wide range of electrical and electronics products, and investment holding. The principal activities of the subsidiaries are set out in note 7 to the financial statements. The consolidated financial statements relate to the Company and its subsidiaries (collectively referred to as the Group).
SCHEME OF ARRANGEMENT AND GOING CONCERN

On 21 January 2009, the Company filed an application with the High Court to propose a scheme of arrangement (the Scheme) between the Company and its creditors (the Scheme Creditors) to restructure its liabilities. The Scheme was eventually sanctioned by the Court of Appeal on 13 October 2010, with an effective date of 19 April 2010 (the Scheme Effective Date). On 1 June 2010, the Company announced the results of its first Reverse Dutch Auction (RDA) pursuant to the Scheme. The Company paid $14,750,000 and irrevocably, unconditionally and permanently extinguished $89,925,000 of debts under the RDA. The remaining debts under the Scheme, amounting to $251,794,000, which include the claims of certain related party creditors of $22,054,000, are presented as sustainable and non-sustainable debts at their carrying amounts (see notes 16 and 25) for the purpose of these financial statements, without discounting the amounts to their estimated present values or fair values. At the date of these financial statements, the process of ascertaining the amounts of the claims of certain related party creditors is still on-going. In addition, there are claims that are currently contingent in nature, for which the amounts have not yet been determined. Under the terms of the Scheme, the nonsustainable debts will be converted into Redeemable Convertible Bonds (RCBs). Based on these financial statements, the Group incurred a net loss of $37,138,000 for the year ended 31 March 2011 and, as at 31 March 2011, the Group and the Company had negative shareholders equity of $96,936,000 and $121,955,000, respectively. The Groups current liabilities exceeded its current assets by $13,967,000. The ability of the Group and the Company to continue in operation in the foreseeable future and to meet their financial obligations as and when they fall due is, therefore, dependent on: (i) (ii) the successful implementation of the Scheme; the profitability of future operations of the Company and its subsidiaries;
36

2 SCHEME OF ARRANGEMENT AND GOING CONCERN (contd)
(iii) (iv) (v) the controlling shareholders and key management personnel of the Company remaining substantially unchanged; the ability to secure financing as and when required; and the continuing support of bank and other creditors, suppliers and other parties.
The financial statements of the Group and the Company have been prepared on a going concern basis, which assumes that the Group and the Company will continue in operation at least for a period of twelve months from the reporting date. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that may be necessary if the Group and the Company are unable to continue in operation in the foreseeable future. Should the going concern assumption be inappropriate, adjustments would have to be made to reflect the situation that assets may need to be realised other than in the normal course of business and at amounts which could differ significantly from the amounts at which they are recorded in the balance sheet. In addition, the Group and the Company may have to provide for further liabilities that might arise, and to reclassify non-current assets and non-current liabilities as current assets and current liabilities, respectively. The status of implementation of the Scheme has also resulted in significant uncertainty in estimating: (i) the amounts at which assets and liabilities should be recorded as at 31 March 2011; and (ii) the accuracy and completeness of the prior year adjustments which the directors considered necessary for presentation in these financial statements (see note 29). The amount of assets and liabilities currently recorded in the accounting records of the Company and its subsidiaries, including amounts recoverable from or payable to group companies, are based on claims and payables which have arisen in the ordinary course of business. Accordingly, the amounts at which assets are currently recorded (including the carrying amounts of property, plant and equipment, intangible assets, investments in group companies and amounts recoverable from external parties and group companies) assume that the Group and the Company will, amongst other things, be able to operate profitably in the future. It is currently difficult to assess and estimate with any degree of certainty the amounts that will ultimately be realised or recovered due to the uncertainties caused by the current difficult operating conditions and the status of the Scheme. Further, as of the Scheme Effective Date and as of the reporting date, the amounts at which the liabilities (including amounts due to Scheme Creditors, claims from related party creditors, potential liabilities arising from disputed contingent claims as defined under the Scheme, and other Scheme-related expenses) should be recorded cannot be reliably estimated and, accordingly, no adjustments have been made for the purposes of these financial statements. The directors of the Company have taken note of the current status of the Scheme and the Groups ability to generate positive cash flows from its continuing operations, particularly in the past financial year.
37

2 SCHEME OF ARRANGEMENT AND GOING CONCERN (contd)
The directors consider that different possibilities regarding the future exist and that the differing outcomes can cause the financial position as at 31 March 2011, together with profit or loss, other comprehensive income and changes in equity for the year then ended, to be very different from what is currently presented in the financial statements. The directors also consider that there are no practical means available to resolve such difficulties, due to the effect of the differing outcomes, in the preparation of these financial statements. Accordingly, the directors are of the opinion that, notwithstanding these difficulties, the preparation of these financial statements on a going concern basis provides sufficient information to serve the interests of shareholders and other stakeholders who may use these financial statements.
BASIS OF PREPARATION (a) Statement of compliance

The financial statements have been prepared in accordance with Singapore Financial Reporting Standards (FRS). The basis of preparation (including the basis of measurement and the use of estimates and judgements) of these financial statements is affected by the matters described in note 2 above.
(b)
Basis of measurement
The financial statements have been prepared on the historical cost basis except for certain financial assets and financial liabilities which are measured at fair value.
(c)
Functional and presentation currency

The financial statements are presented in Singapore dollars which is the Companys functional currency and has been rounded to the nearest thousand, unless otherwise stated.
(d)
Use of estimates and judgements

The preparation of the financial statements in conformity with FRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
38

3 BASIS OF PREPARATION (contd) (d) Use of estimates and judgements (contd)
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements is included in note 2 and the following notes: Note 4(h) classification of leases Notes 5 and 8 assumptions of recoverable amounts relating to property, plant and equipment and impairment of goodwill, trademarks and rights Notes 9 and 12 impairment loss on other investments and trade and other receivables Note 17 measurement of provisions Note 25 valuation of financial instruments Note 27 measurement of contingent liabilities Note 28 related parties
(e)
Changes in accounting policies

(i) Accounting for business combinations From 1 April 2010, the Group has applied FRS 103 Business Combinations (2009) in accounting for business combinations. Business combinations are now accounted for using the acquisition method as at the acquisition date (see note 4(a)(i)). Previously, business combinations were accounted for under the purchase method. The cost of an acquisition was measured at the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Goodwill represents the excess of the cost of acquisition over the fair value of the Groups share of the identifiable assets, liabilities and contingent liabilities of the acquired subsidiary and is assessed for impairment annually. The excess of the Groups interest in the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition was credited to profit or loss in the period of the acquisition. For business acquisitions that were achieved in stages, any existing equity interests in the acquiree were not re-measured to their fair value. Contingent consideration was recognised as an adjustment to the cost of acquisition only when it was probable and can be measured reliably. The change in accounting policy has been applied prospectively to new business combinations occurring on or after 1 January 2010 and has no material impact on earnings per share.
39

3 BASIS OF PREPARATION (contd) (e) Changes in accounting policies (contd)
(ii) Accounting for acquisitions of non-controlling interests From 1 April 2010, the Group has applied FRS 27 Consolidated and Separate Financial Statements (2009) in accounting for acquisitions of non-controlling interests. See note 4(a)(iii) for the new accounting policy. Previously, goodwill was recognised on the acquisition of non-controlling interests in a subsidiary, which represented the excess of the cost of the additional investment over the carrying amount of the interest in the net assets acquired at the date of the transaction. The change in accounting policy has been applied prospectively and has no impact on earnings per share.
SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been applied consistently by Group entities, except as explained in note 3(e), which addresses changes in accounting policies.
(a)
Basis of consolidation
(i) Business combinations Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss. Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred. Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognised in profit or loss.
40

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (a) Basis of consolidation (contd)
(ii) Subsidiaries Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the Group. (iii) Acquisition of non-controlling interests Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners and therefore no goodwill is recognised as a result of such transactions. The adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary. (iv) Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. (v) Accounting for subsidiaries by the Company Investments in subsidiaries are stated in the Companys balance sheet at cost less accumulated impairment losses.
(b)
Foreign currencies
Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rate at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date on which the fair value was determined. Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences arising on the retranslation of monetary items that in substance form part of the Groups net investment in a foreign operation (see below) and available-for-sale equity instruments.
41

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (b) Foreign currencies (contd)
Net investment in a foreign operation Exchange differences arising from monetary items that in substance form part of the Companys net investment in a foreign operation, are recognised in the Companys income statement. Such exchange differences are reclassified to equity in the consolidated financial statements. When the hedged net investment is disposed of, the cumulative amount in equity is transferred to the income statement as an adjustment to the profit or loss arising on disposal. Foreign operations The assets and liabilities of foreign operations, excluding goodwill and fair value adjustments arising on the acquisition of foreign operations, are translated to Singapore dollars at exchange rates at the end of the reporting period. The income and expenses of foreign operations are translated to Singapore dollars at exchange rates prevailing at the dates of the transactions. Foreign currency differences are recognised in the foreign currency translation reserve. When a foreign operation is disposed of, in part or in full, the relevant amount in the foreign exchange translation reserve is transferred to the income statement.
(c)
Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses except for completed land and buildings, which are stated at their revalued amounts. The revalued amount is the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are carried out by independent professional valuers regularly such that the carrying amount of these assets does not differ materially from that which would be determined using fair values at the balance sheet date. Any increase in the revaluation amount is credited to the revaluation reserve unless it offsets a previous decrease in value of the same asset that was recognised in the income statement. A decrease in value is recognised in the income statement where it exceeds the increase previously recognised in the revaluation reserve. Upon disposal, any related revaluation reserve is transferred from the revaluation reserve to accumulated profits and is not taken into account in arriving at the gain or loss on disposal. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use, and the cost of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
42

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (c) Property, plant and equipment (contd)
The gain and loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and is recognised net within other income/other expenses in profit or loss. The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. Freehold land and leasehold land and buildings under construction are not depreciated. Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. The estimated useful lives for the current and comparative years are as follows: Freehold buildings Leasehold land and buildings Plant and machinery Renovations Furniture, fittings and office equipment Computers Motor vehicles 50 years 18 to 50 years 2 to 10 years 3 to 10 years 2 to 10 years 3 to 5 years 5 years
Depreciation methods, useful lives and residual values are reviewed, and adjusted as appropriate, at each reporting date. When the use of a property changes from owner-occupied to investment property, the property is remeasured to fair value and reclassified as investment property. Any gain arising on remeasurement is recognised in profit or loss to the extent that the gain reverses a previous impairment loss on the specific property, with any remaining gain recognised in other comprehensive income and presented in the revaluation reserve in equity. Any loss is recognised in other comprehensive income and presented in the revaluation reserve to the extent that an amount had previously been included in the revaluation reserve relating to the specific property, with any remaining loss recognised immediately in profit or loss.
(d)
Investment properties
Investment property is property held either to earn rental income or capital appreciation or both. It does not include properties held for sale in the ordinary course of business, used in the production or supply of goods or services, or for administrative purposes. Investment property is measured at fair value, with any change recognised in the income statement. Rental income from investment properties is accounted for in the manner described in note 4(m).
43

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (d) Investment properties (contd)
When the Group holds a property interest under an operating lease to earn rental income or capital appreciation, the interest is classified and accounted for as investment properties on a property-by-property basis. Any such property interest which has been classified as investment properties is accounted for as if it is held under finance lease (see note 4(h)), and is accounted for in the same way as other investment properties leased under finance leases. Lease payments are accounted for as described in note 4(h).
(e)
Intangible assets
Goodwill Goodwill represents the excess of: the fair value of the consideration transferred; plus the recognised amount of any non-controlling interests in the acquiree; plus if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree,
over the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed. When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss. Goodwill is measured at cost less accumulated impairment losses. In respect of equityaccounted investees, the carrying amount of goodwill is included in the carrying amount of the investment, and an impairment loss on such an investment is not allocated to any asset, including goodwill, that forms part of the carrying amount of the equity-accounted investee. Trademarks Trademarks recorded in the financial statements are amortised over their estimated useful lives, taking into account the ability to renew the trademarks in their respective jurisdictions and after adjusting for impairment losses, if any. It is tested for impairment annually as described in note 4(g). Distribution rights Distribution rights for brands or products are stated at cost less accumulated amortisation and impairment loss and are tested for impairment annually as described in note 4(g). Amortisation is charged to the income statement on a straight-line basis over their estimated useful lives of 20 years.
44

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (f) Financial instruments
(i) Non-derivative financial assets The Group has the following non-derivative financial assets: investments in equity securities, trade and other receivables, and cash and cash equivalents. The Group initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability. Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. Loans and receivables comprise cash and cash equivalents and trade and other receivables. Cash and cash equivalents comprise cash balances and bank deposits. Bank overdrafts that are repayable on demand and form an integral part of the Groups cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale and that are not classified in any of the previous categories. The Groups investments in certain equity securities are classified as available-for-sale financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses and foreign currency differences on available-for-sale monetary items are recognised in other comprehensive income and presented in the fair value reserve in equity. When an investment is derecognised, the cumulative gain or loss in equity is reclassified to profit or loss.
45

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (f) Financial instruments (contd)
(ii) Non-derivative financial liabilities The Group has the following non-derivative financial liabilities: financial liabilities, and trade and other payables. The Group initially recognises debt securities issued and subordinated liabilities on the date that they are originated. All other financial liabilities (including liabilities designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expired. Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. (iii) Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity. (iv) Derivatives and hedging activities Derivatives are recognised initially at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. As the derivative instruments are not designated in a hedge relationship for the purpose of hedge accounting, changes in their fair values are recognised immediately in profit or loss and are included in other income or other expenses.
46

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (g) Impairment
(i) Financial assets (including receivables) A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets (including equity securities) are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, or the disappearance of an active market for a security. In addition, for an investment in an equity security, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment. The Group considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together receivables with similar risk characteristics. In assessing collective impairment, the Group uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for managements judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the assets original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against receivables. Interest on the impaired asset continues to be recognised through the unwinding of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair value reserve in equity to profit or loss. The cumulative loss that is reclassified from equity to profit or loss is the difference between the acquisition cost, net of any principal repayment and amortisation, and the current fair value, less any impairment loss previously recognised in profit or loss. Changes in impairment provisions attributable to the application of effective interest method are reflected as a component of interest income.
47

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (g) Impairment (contd)
(i) Financial assets (including receivables) (contd) If, in a subsequent period, the fair value of an impaired available-for-sale debt security increases and the increase can be related objectively to an event occurring after the impairment loss was recognised in profit or loss, then the impairment loss is reversed, with the amount of the reversal recognised in profit or loss. However, any subsequent recovery in the fair value of an impaired available-for-sale equity security is recognised in other comprehensive income. (ii) Non-financial assets The carrying amounts of the Groups non-financial assets, other than investment properties, inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assets recoverable amount is estimated. For goodwill, and intangible assets that have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated each year at the same time. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets or CGU. Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that the level at which impairment is tested reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of the combination. The Groups corporate assets do not generate separate cash inflows. If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis.
48

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (g) Impairment (contd)
(ii) Non-financial assets (contd) An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(h)
Leases
When entities within the Group are lessees of a finance lease Leased assets in which the Group assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, property, plant and equipment acquired through finance leases are capitalised at the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Leased assets are depreciated over the shorter of the lease term and their useful lives. Lease payments are apportioned between finance expense and reduction of the lease liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed. When entities within the Group are lessees of an operating lease Where the Group has the use of assets under operating leases, payments made under the leases are recognised in the income statement on a straight-line basis over the term of the lease, unless another systematic basis is more representative of the time pattern of the benefit derived. Lease incentives received are recognised in the income statement as an integral part of the total lease payments made. Contingent rentals are charged to the income statement in the accounting period in which they are incurred. When entities within the Group are lessors of an operating lease Assets leased out under operating lease arrangements relate to the Groups warehouse and office facilities that were previously the subject of a sale and leaseback transaction. These assets are also used to generate rental income. Rental income (net of any incentives given to lessees) is recognised on a straight-line basis over the lease term.
49

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (i) Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is calculated using the weighted average cost formula and comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. In arriving at net realisable value, due allowance is made for all obsolete and slow moving items.
(j)
Employee benefits
Defined contribution plans Obligations for contributions to defined contribution pension plans are recognised as an expense in profit or loss in the periods during which services are rendered by employees. Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. These include salaries, annual bonuses and paid annual leave. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. Share-based payments TT International Employees Share Option Scheme (Option Scheme) and TT International Performance Share Plan (Share Plan) have been put in place to grant options and award shares to eligible employees and participants, respectively. Details of the Option Scheme and Share Plan are disclosed in the Directors Report. The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. At each balance sheet date, the Company revises its estimates of the number of options that are expected to become exercisable. It recognises the impact of the revision of original estimates in employee expense and in a corresponding adjustment to equity over the remaining vesting period. The proceeds received net of any directly attributable transactions costs are credited to share capital when the options are exercised.
50

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (k) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Warranties A provision for warranties is recognised when the underlying products or services are sold. The provision is based on historical warranty data and a weighting of all possible outcomes against their associated probabilities. Restructuring A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been announced publicly. Future operating costs are not provided for.
(l)
Intra-group guarantees
Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within the Group, the Company considers these to be insurance arrangements, and accounts for them as such. In this respect, the Company treats the guarantee contract as a contingent liability until such time as it becomes probable that the Company will be required to make a payment under the guarantee. A provision is recognised based on the Companys estimate of the ultimate cost of settling all claims incurred but unpaid at the balance sheet date. The provision is assessed by reviewing individual claims and tested for adequacy by comparing the amount recognised and the amount that would be required to settle the guarantee contract.
(m) Revenue recognition

Sale of goods Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, goods and services taxes or other sales taxes, trade discounts and volume rebates. Revenue is recognised when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. Transfers of risks and rewards vary depending on the individual terms of the contract of sale. For sales of consumer electronics and furniture and furnishing products, transfer usually occurs when the product is received by the customer; however, for some international shipments, transfer occurs upon loading of the goods on to the relevant carrier.
51

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (m) Revenue recognition (contd)
Rental income Rental income receivable under operating leases is recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income to be received. Contingent rentals are recognised as income in the accounting period in which they are earned.
(n)
Finance income and expense

Finance income comprises interest income on bank balances and fixed deposits and dividend income. Interest income is recognised as it accrues, using the effective interest method. Dividend income is recognised in the income statement on the date that the Groups right to receive payment is established, which in the case of quoted securities is the ex-dividend date. Finance expenses comprise interest expense on borrowings. All borrowing costs are recognised in the income statement using the effective interest method, except to the extent that they are capitalised as being directly attributable to the acquisition of an asset which necessarily takes a substantial period of time to be prepared for its intended use or sale.
(o)
Government grants
Cash grants received from the government in relation to the Jobs Credit Scheme are recognised as income upon receipt.
(p)
Income tax expense

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in the income statement except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
52

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (p) Income tax expense (contd)
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
(q)
Earnings per share

The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year, adjusted for own shares held. Diluted earnings per share is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares, which comprise convertible notes and share options granted to employees.
(r)
Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Groups other components. All operating segments operating results are reviewed regularly by the Chairman and Chief Executive Officer (CEO) to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available.
53

4 SIGNIFICANT ACCOUNTING POLICIES (contd) (r) Segment reporting (contd)
Segment results that are reported to the Chairman and CEO include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Companys headquarters), head office expenses, and income tax assets and liabilities. Segment capital expenditure is the total cost incurred during the year to acquire property, plant and equipment, and intangible assets other than goodwill.
(s)
New standards and interpretations not yet adopted

New standards, amendments to standards and interpretations that are not yet effective for the year ended 31 March 2011 have not been applied in preparing these financial statements. None of these are expected to have a significant effect on the financial statements of the Group.
PROPERTY, PLANT AND EQUIPMENT

At valuation Freehold land and buildings $000 10,579 Leasehold Leasehold land and land and building under Plant and buildings construction machinery $000 $000 $000 27,256 81,846 7,956 At cost Furniture, fittings and office equipment $000 12,767
Group Cost/Valuation At 1 April 2009 Translation differences on consolidation Additions Surplus on revaluation recognised directly in equity Liquidation of subsidiaries Disposals Reversal of depreciation on revaluation At 31 March 2010 Translation differences on consolidation Additions Surplus on revaluation recognised directly in equity Disposals Reversal of depreciation on revaluation At 31 March 2011
Note
Renovations $000 12,025
Motor Computers vehicles $000 $000 7,967 5,344
Total $000 165,740
1,838 278
(1,073)
4,613
(705) 222
(4,501) 2,447
1,187 583
391 793
188 397
(2,675) 9,333
704 24 (8,932)
2,846 (5,060)
(59) (1,192)
(478)
(112) (2,133)
(215) (663)
(70) (1,080)
3,550 (5,516) (14,478)
(77) 4,390
(1,901) 22,068
86,459
6,222
9,493
12,292
8,273
4,779
(1,978) 153,976
35
(1,429)
1,430
1,165 101
21 880
(776) 535
114 550
(175) 347
(1,045) 3,843
120
4,081
(989)
(786)
(705)
(202)
(602)
4,201 (3,284)
(86) 4,459
(1,927) 22,793
87,889
6,499
9,608
11,346
8,735
4,349
(2,013) 155,678
54

5 PROPERTY, PLANT AND EQUIPMENT (contd)
At valuation Freehold land and buildings $000 Leasehold Leasehold land and land and building under Plant and buildings construction machinery $000 $000 $000 At cost Furniture, fittings and office equipment $000
Group Accumulated depreciation At 1 April 2009 Translation differences on consolidation Depreciation charge for the year Liquidation of subsidiaries Disposals Reversal of depreciation on revaluation At 31 March 2010 Translation differences on consolidation Depreciation charge for the year Disposals Reversal of depreciation on revaluation At 31 March 2011 Carrying amount At 1 April 2009 At 31 March 2010 At 31 March 2011
Note
Renovations $000
Motor Computers vehicles $000 $000
Total $000
4,765
9,589
8,613
6,065
3,886
32,918
(609)
(4,711)
654
140
169
(4,357)
255 24 (178)
1,937 (36)
256 (23) (460)
1,872 (189)
1,088 (51) (694)
974 (211) (343)
573 (50) (726)
6,955 (371) (2,590)
(77)
(1,901)
3,929
6,561
9,610
6,625
3,852
(1,978) 30,577
(105)
(190)
(339)
(12)
(97)
(743)
86
1,927
131 (476)
1,502 (608)
1,196 (608)
824 (192)
357 (430)
6,023 (2,314)
(86)
(1,927)
3,479
7,265
9,859
7,245
3,682
(2,013) 31,530
10,579 4,390 4,459
27,256 22,068 22,793
81,846 86,459 87,889
3,191 2,293 3,020
2,436 2,932 2,343
4,154 2,682 1,487
1,902 1,648 1,490
1,458 927 667
132,822 123,399 124,148
55

At valuation Leasehold land and building under construction $000 81,846 4,613 86,459 1,430 87,889
At cost
Company Cost/Valuation At 1 April 2009 Additions Disposals At 31 March 2010 Additions Disposals At 31 March 2011 Accumulated depreciation At 1 April 2009 Depreciation charge for the year Disposals At 31 March 2010 Depreciation charge for the year Disposals At 31 March 2011 Carrying amount At 1 April 2009 At 31 March 2010 At 31 March 2011
Freehold building $000 284 284 284
Plant and machinery $000 211 (97) 114 114
Renovations $000 114 114 114
Furniture, fittings and office equipment $000 508 1 509 48 (2) 555
Computers $000 3,939 97 (36) 4,000 27 4,027
Motor vehicles $000 1,375 84 (103) 1,356 (47) 1,309
Total $000 88,277 4,795 (236) 92,836 1,505 (49) 94,292
91 6 97 6 103 193 187 181
81,846 86,459 87,889
197 3 (97) 103 6 109 14 11 5
97 5 102 4 106 17 12 8
384 31 415 31 (1) 445 124 94 110
3,539 204 (36) 3,707 180 3,887 400 293 140
1,170 106 (103) 1,173 84 (47) 1,210 205 183 99
5,478 355 (236) 5,597 311 (48) 5,860 82,799 87,239 88,432
Freehold and leasehold buildings comprise mainly commercial properties which were occupied by the Group and also used for the provision of warehousing and logistics services to third parties. The carrying amount of leasehold buildings available for provision of warehousing and logistics services to third parties as at 31 March 2011 is approximately $4,297,000 (2010: $4,935,000). Leasehold building under construction comprises the development of an 8-storey retail and warehousing complex under the Warehouse Retail Scheme in Jurong, Singapore. The construction activities of the retail and warehousing complex have been temporarily suspended. As at 31 March 2011, property, plant and equipment with a carrying amount of $410,000 (2010: $516,000) for the Group and $233,000 (2010: $371,000) for the Company were acquired under finance lease agreements. The amounts outstanding under the finance lease agreements are set out in note 16 to the financial statements.
56

Freehold and leasehold land and buildings of the Group were revalued by firms of independent professional valuers at close to the balance sheet date, at open market value, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arms length transaction. A revaluation surplus amounting to $4,201,000 (2010: $3,550,000) has been transferred to the revaluation reserves of the Group during the year. The carrying amount of freehold and leasehold land and buildings of the Group (excluding the leasehold land and building under construction) would have been $13,089,000 (2010: $13,894,000) had the freehold and leasehold land and buildings been carried at cost less accumulated depreciation and impairment losses. Information on property, plant and equipment that are pledged as security for the Groups financial liabilities are set out in note 16 to the financial statements.
INVESTMENT PROPERTIES
Group Note At 1 April Translation differences on consolidation Disposal of investment properties Changes in fair value At 31 March 2011 $000 6,777 (228) 1,430 7,979 2010 $000 19,580 171 (13,021) 47 6,777
19
Investment properties were revalued at close to the balance sheet date by firms of independent professional valuers who have appropriate recognised professional qualifications and recent experience in the locations and categories of the properties being valued. The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arms length transaction. Investment properties comprise a number of industrial buildings that are leased to external parties for a period ranging from 2 to 3 years. Subsequent renewals of the operating leases are negotiated with the lessees. Information on investment properties that are pledged as security for the Groups financial liabilities are set out in note 16 to the financial statements.
57

7 SUBSIDIARIES
Company 2011 $000 At cost: Quoted equity investment Unquoted equity investments Impairment losses Market value of quoted equity investment 1,767 20,806 (4,721) 17,852 7,352 2010 $000 1,767 20,706 (4,721) 17,752 9,094
The movement in impairment losses in respect of cost of investments in subsidiaries is as follows: Company 2011 2010 $000 $000 4,721 4,221 1,002 4,721 (502) 4,721
At 1 April Impairment losses made Impairment losses written off against the cost of investment of subsidiaries liquidated At 31 March The list of significant subsidiaries is as follows:
Name of subsidiary @ Akira Corporation Pte Ltd Akira Europe S.A.S
Principal activities Trading in electrical and electronic products Trading and distribution of consumer electronics products Property investment and management and rental of leasehold building Retail, wholesale and export of furniture and furnishing products
Place of incorporation Singapore France
Effective interest held by the Group 2011 2010 % % 100 100 100 100
Castilla Design Pte Ltd
Singapore
100
100
Furniture & Furnishings Pte Ltd and its subsidiaries
Singapore
100
100
58

7 SUBSIDIARIES (contd)
Effective interest held by the Group 2011 2010 % % 100 100 100 100 100 100 100 100
Name of subsidiary * * * First Omni Sdn. Bhd. JSA Gulf FZE Intracorp (B) Sdn. Bhd. Novena Furnishing Centre Pte Ltd PT Electronic Solution
Principal activities Distribution of electrical and electronics products Trading in electrical and electronics products Distribution of electrical and electronics products Property investment and management and rental of leasehold building Trading and retailing of electrical and electronics products Trading and retailing of electrical and electronics products Trading in electrical and electronics products Distribution of electrical and electronics products Sourcing, trading and distribution of electrical and electronics products
Place of incorporation Malaysia United Arab Emirates Brunei Singapore
Indonesia
100
100
Tainahong Trading Limited Tech Global Pte Ltd TTA Holdings Ltd and its subsidiary TTC Sales and Marketing (SA) (Proprietary) Limited
Auditors Auditors Auditors Auditors Auditors are are are are are
Hong Kong
100
100
Singapore Australia South Africa
100 85.5 51
100 85.5 51
* ^ @
KPMG LLP Singapore. other member firms of KPMG International. HLB Mann Judd (VIC Partnership), Australia. Andi, Arifin, Amita, Wisnu & Rekan, Indonesia. other firms of certified public accountants.
The consolidated financial statements of the Group are prepared based on the management accounts of the Company and its subsidiaries. The subsidiaries which are not significant constitute, in aggregate, less than 20% of the total assets and total revenue of the consolidated financial statements.
59

8 INTANGIBLE ASSETS
Goodwill on Trademarks consolidation and rights $000 $000
Note Group Cost At 1 April 2010 and 31 March 2011 Accumulated amortisation and impairment losses At 1 April 2009 Amortisation charge for the year At 31 March 2010 Impairment loss Amortisation charge for the year At 31 March 2011 Carrying amount At 1 April 2009 At 31 March 2010 At 31 March 2011
Total $000
8,650
14,042
22,692
19 19 19
2,806 2,806 861 3,667 5,844 5,844 4,983
4,176 58 4,234 56 4,290 9,866 9,808 9,752
6,982 58 7,040 861 56 7,957 15,710 15,652 14,735
Impairment tests for CGU containing goodwill

Goodwill and trademarks are allocated to the retail and distribution business segment of the Group in respect of the consumer electronics and private label business and furniture and furnishing business, which are each regarded as a CGU. The aggregate carrying amount of intangible assets allocated to each CGU are as follows: Group 2011 $000 6,575 8,160 14,735 2010 $000 7,492 8,160 15,652
Consumer electronics and private label business Furniture and furnishing business
The recoverable amount of the CGU in respect of the consumer electronics and private label business is determined based on cash flows projected from the five-year business plan and past operating results. The key assumptions used took into account the established network and managements assessment of the potential of key markets. The annual growth rates and discount rate used in the cash flow projections ranged from 0% to 9% and 10.7%, respectively (2010: 0% to 3% and 8%).
60

8 INTANGIBLE ASSETS (contd)
The recoverable amount of the CGU in respect of the furniture and furnishing business is determined based on value-in-use calculations. These calculations use cash flow projections based on financial budgets approved by management covering a five-year period. Key assumptions used in the value-in-use calculations include budgeted revenue and gross margin which are determined based on past performance and managements expectation of market development. The annual growth rates and discount rate used in the cash flow projections were 10% and 10.7%, respectively (2010: 0% to 5% and 8%).
OTHER INVESTMENTS
Group 2011 $000 Available-for-sale investments quoted equity securities, at fair value 2,492 2010 $000 2,957
The quoted equity securities are denominated in Indonesian rupiah, and are held by a subsidiary with Singapore dollar as its functional currency.
10
DEFERRED TAX
Movements in deferred tax assets/(liabilities) of the Group (prior to offsetting of balances) during the year are as follows:
At 1 April 2009 $000 Group Inventories Tax value of loss carry-forward recognised Other items Property, plant and equipment 1,574 Exchange translation differences $000 133 Recognised in income Liquidation statement of (note 21) subsidiaries $000 $000 (309) At 31 March 2010 $000 1,398 Exchange translation differences $000 10 Recognised in income statement (note 21) $000 107 At 31 March 2011 $000 1,515
2,025 1,406 (568) 4,437
204 1,017 232 1,586
(1,287) (390) (46) (2,032)
(101) 33 (68)
841 2,033 (349) 3,923
(533) 2 66 (455)
438 (396) (47) 102
746 1,639 (330) 3,570
61

10 DEFERRED TAX (contd)
Deferred tax assets and liabilities are offset when there is a legally enforceable right to setoff current tax assets against current tax liabilities and when the deferred taxes relate to the same taxation authority. The following amounts, determined after appropriate offsetting, are as follows: Group 2011 $000 3,725 (155) 2010 $000 4,097 (174) Company 2011 $000 2010 $000
Deferred tax assets Deferred tax liabilities
At the balance sheet date, tax losses amounting to $174,956,000 (2010: $217,741,000) and $84,134,000 (2010: $87,585,000) of the Company and certain subsidiaries, respectively, have not been recognised because it is not probable that future taxable profits will be available against which the entities concerned can utilise the benefits therefrom. The tax losses are subject to agreement by the tax authorities and compliance with tax regulations in the respective countries in which the entities operate.
11
INVENTORIES
Group 2011 $000 61,891 (10,055) 51,836 2010 $000 85,511 (11,100) 74,411 Company 2011 2010 $000 $000 28 28 (9) 19 (9) 19
Inventories Allowance for inventories obsolescence
Information on inventories that are pledged as security for the Groups financial liabilities are set out in note 16 to the financial statements. An additional allowance was made for inventories of the Group during the year of $1,787,000 (2010: $4,228,000) (see note 19). Allowances are offset against inventories when the inventories are sold or written off.
62

12 TRADE AND OTHER RECEIVABLES
Group 2011 $000 72,015 (19,312) 52,703 17,775 (5,048) 12,727 150 2,872 16,768 4,076 89,296 2010 $000 147,381 (67,475) 79,906 18,310 (4,458) 13,852 72 6,088 16,242 4,243 120,403 Company 2011 $000 6,415 6,415 4,178 (4,178) 119,288 (105,284) 14,004 85,972 (2,115) 9 36 45 104,366 2010 $000 68,761 (50,567) 18,194 4,178 (4,178) 145,319 (105,282) 40,037 79,041 (2,115) 3 830 29 136,019
Trade receivables Allowance for doubtful receivables Net trade receivables Other receivables Allowance for doubtful receivables Net other receivables Trade amounts due from subsidiaries Allowance for doubtful receivables Net trade receivables from subsidiaries Non-trade amounts due from subsidiaries Allowance for doubtful receivables Advances to staff Deposits Advance payments to suppliers Prepaid operating expenses
The non-trade amounts due from subsidiaries are unsecured, interest-free and repayable on demand. Information on trade receivables that are pledged as security for the Groups financial liabilities are set out in note 16 to the financial statements. The Groups primary exposure to credit risk arises through its trade receivables. Concentration of credit risk relating to trade receivables is limited due to the Groups many varied customers. These customers are internationally dispersed, engage in a wide spectrum of distribution activities, and sell in a variety of end markets. The Group has been affected by the global liquidity crunch, adverse economic conditions and the resultant difficult trading environment. This gave rise to business disruptions in many of the countries the Group operates in and has resulted in the recorded allowances.
63

12 TRADE AND OTHER RECEIVABLES (contd)
The maximum exposure to credit risk for trade receivables at the reporting date (by type of customer) is: Group 2011 $000 50,518 1,532 653 52,703 2010 $000 74,786 4,469 651 79,906 Company 2011 $000 16,335 4,084 20,419 2010 $000 53,778 4,439 14 58,231
Retail and distribution Trading Other business
The ageing of trade receivables due from external parties at the reporting date is: Allowance for doubtful receivables 2010 $000 (19,312) (19,312) Allowance for doubtful receivables 2010 $000 (67,475) (67,475) (50,567) (50,567)
Gross 2011 $000 Group Not past due Past due 0 1 month Past due 1 2 months Past due 2 3 months Past due 3 4 months More than 4 months Company Not past due Past due 0 1 month Past due 1 2 months Past due 2 3 months Past due 3 4 months More than 4 months 28,982 9,031 3,018 320 616 30,048 72,015 544 5,871 6,415
Gross 2011 $000 32,461 11,739 11,322 10,146 6,288 75,425 147,381 9,287 598 2,989 1,734 2,982 51,171 68,761
64

12 TRADE AND OTHER RECEIVABLES (contd)
The change in allowance for doubtful receivables in respect of trade receivables due from external parties during the year is as follows: Group Note At 1 April Allowance made Allowance utilised Foreign currency translation difference At 31 March 2011 $000 67,475 3,602 (50,760) 2010 $000 66,865 4,084 (4,738) Company 2011 $000 50,567 (50,567) 2010 $000 53,141 (2,574)
19
(1,005) 19,312
1,264 67,475
50,567
For the year ended 31 March 2010, allowance utilised included receivables of subsidiaries which were liquidated, amounting to $1,243,000. Receivables denominated in currencies other than the respective Group entities and the Companys functional currencies include $12,730,000 (2010: $33,922,000) and $5,755,000 (2010: $17,955,000) of trade receivables denominated in US dollars, respectively. The change in allowance for doubtful receivables in respect of trade and other receivables due from related parties during the year is as follows: Company 2011 $000 107,397 2 107,399 2010 $000 91,232 16,421 (256) 107,397
At 1 April Allowance made Allowance utilised At 31 March
An allowance has been made for estimated irrecoverable receivables from subsidiaries amounting to $2,000 (2010: $16,421,000) after taking into consideration the financial and liquidity position of these subsidiaries which are experiencing difficulties in the collection of their trade receivables. Please refer to note 2 for further details on the basis of accounting.
65

13 CASH AND CASH EQUIVALENTS
Group Note Cash at bank and in hand Fixed deposits with financial institutions Bank overdrafts Cash and cash equivalents in the statement of cash flows 16 2011 $000 15,769 2010 $000 10,870 Company 2011 $000 244 2010 $000 358
143 15,912 (7,790)
269 11,139 (26,805)
244
358
8,122
(15,666)
The weighted average effective interest rates per annum relating to fixed deposits at the balance sheet date for the Group is 1.91% (2010: 1.20%). The interest rates reprice at intervals of six months or one year. Cash and cash equivalents denominated in currencies other than the respective Group entities and the Companys functional currencies include $2,710,000 (2010: $2,461,000) and $107,000 (2010: $176,000) of cash and cash equivalents denominated in US dollars, respectively.
14
SHARE CAPITAL
2011 Number of shares 000 Fully paid ordinary shares, with no par value: At beginning and end of financial year 816,541 2010 Number of shares 000 816,541
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Companys residual assets. It is the policy of the Board of Directors to maintain an appropriate capital base to support the Groups businesses and maximise shareholders value through the optimisation of the debt and equity balance. It is also the policy of the Board of Directors to monitor the return on capital (comprising share capital and reserves) and the level of dividends to ordinary shareholders. The Companys ability to manage its capital has however been constrained by the current difficult operating conditions and the Scheme.
66

15 RESERVES
Group 2011 $000 Capital reserves (distributable): Realised gain on disposal of assets Fair value and revaluation reserves Foreign currency translation reserve Accumulated losses 2010 $000 (Restated) Company 2011 $000 2010 $000 (Restated)
54 23,935 (26,272) (235,216) (237,499)
54 19,069 (28,370) (201,253) (210,500)
54 (262,572) (262,518)
54 (241,046) (240,992)
The fair value and revaluation reserves include the cumulative net change in the fair value of available-for-sale investment held until the investment is derecognised and the net surpluses arising from the revaluation of properties included in property, plant and equipment, including those transferred to investment properties. The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations whose functional currencies are different from the functional currency of the Company.
16
FINANCIAL LIABILITIES
Group Note Non-current liabilities Amounts due to Scheme Creditors Sustainable debts Non-sustainable debts Unsecured bank loans Secured bank loans Finance lease liabilities 2011 $000 2010 $000 (Restated) Company 2011 $000 2010 $000 (Restated)
(a) (a)
79,755 149,985 229,740 2,646 2,567 249 235,202
2,696 407 3,103
87,051 164,743 251,794 101 251,895
301 301
(b)
67

16 FINANCIAL LIABILITIES (contd)
Group Note Current liabilities Secured bank overdrafts Unsecured bank overdrafts Secured bank loans Unsecured bank loans Unsecured fixed rate notes Bills payable and trust receipts Finance lease liabilities Total borrowings 2011 $000 2010 $000 (Restated) 8,070 18,735 18,521 95,212 36,250 128,779 372 305,939 309,042 Company 2011 $000 2010 $000 (Restated) 16,542 89,107 36,250 128,296 286 270,481 270,782
(b)
6,444 1,346 16,384 516 5,102 283 30,075 265,277
209 209 252,104
(b)
(c)
Financial liabilities denominated in currencies other than the respective Group entities and the Companys functional currencies include $18,694,000 (2010: $154,162,000) and Nil (2010: $130,089,000) of financial liabilities denominated in US dollars, respectively. (a) Pursuant to the Scheme, and as explained in note 2 to these financial statements, the Companys debts owing to the Scheme Creditors have been restructured during the year. Accordingly, financial liabilities and other payables of the Company as at 31 March 2010, amounting to $270,481,000 and $63,705,000, respectively, together with other additional current year liabilities amounting to $7,533,000, had been admitted as restructured debts under the Scheme. Subsequently, debts totalling $89,925,000 had been irrevocably, unconditionally and permanently extinguished as a result of the RDA. The remaining restructured debts, amounting to $251,794,000, which included claims from related parties of $22,054,000, are presented as sustainable and non-sustainable debts at their carrying amounts for the purpose of these financial statements, without discounting the amounts to their estimated present values or fair values, as the directors considered it impracticable to remeasure these financial liabilities at fair values as at 31 March 2011. The amounts due to the Scheme Creditors are to be secured by a fixed and floating charge over all the assets of the Company, subject to any prior rights of other creditors.
68

(a) (contd) The sustainable debts have a term of 5 years commencing from the Scheme Effective Date. At the end of the term, the Company shall either: (i) repay the debts in full, (ii) refinance the debts, or (iii) reach an agreement with the Scheme Creditors to roll-over the debts. The sustainable debts are subject to interest rates of SIBOR plus 1.5% per annum. The non-sustainable debts will be converted into RCBs with zero coupon and a term of 10 years in accordance with the terms of the Scheme. The RCBs are convertible at the option of the bondholders into new ordinary shares of the Company on a yearly basis, subject to the terms of the Scheme, commencing from the third year from the Scheme Effective Date. At the end of the term, for any outstanding RCBs not converted into shares of the Company, the Company shall either: (i) repay the debts in full, (ii) refinance the debts, or (iii) reach an agreement with the Scheme Creditors to roll-over the debts associated with the outstanding RCBs. At the date of these financial statements, the Company has not yet issued such RCBs to the Scheme Creditors. (b) The bank borrowings are secured by the following: (i) legal mortgages on subsidiaries land and buildings and investment properties as at 31 March 2011 with carrying amounts of $13,710,000 (2010: $11,728,000) and $5,850,000 (2010: $4,600,000), respectively; a subsidiarys plant and machinery as at 31 March 2011 with a carrying amount of MMK59,416,000 (approximately $59,000) (2010: MMK75,000,000 (approximately $83,000)); and subsidiaries trade receivables and inventories as at 31 March 2011 with a total carrying amount of IDR186,750,000,000 (approximately $27,172,000) (2010: IDR232,613,000,000 (approximately $35,683,000)).
(ii)
(iii)
(c)
The unsecured fixed rate notes were issued under the Multi-Currency Medium Term Note Programmes totalling Nil (2010: $300,000,000).
69

16 FINANCIAL LIABILITIES (contd) Finance lease liabilities
The Group and the Company had obligations under finance leases that are payable as follows: 2011 Interest $000 2010 Interest $000
Principal $000 Group Payable within 1 year Payable after 1 year but within 5 years Payable after 5 years
Payments Principal $000 $000
Payments $000
283 233 16 249 532
24 39 1 40 64 10 6 6 16
307 272 17 289 596 219 107 107 326
372 398 9 407 779 286 292 9 301 587
37 21 1 22 59 26 14 1 15 41
409 419 10 429 838 312 306 10 316 628
Company Payable within 1 year Payable after 1 year but within 5 years Payable after 5 years
209 101 101 310
70

16 FINANCIAL LIABILITIES (contd) Effective interest rates and repricing/maturity analysis
Fixed interest rate maturing After 1 year but Within within After 1 year 5 years 5 years $000 $000 $000
Group 2011 Amounts due to Scheme Creditors Sustainable debts Secured bank overdrafts Unsecured bank overdrafts Secured bank loans Unsecured bank loans Bills payable and trust receipts Finance lease liabilities 2010 (Restated) Secured bank overdrafts Unsecured bank overdrafts Secured bank loans Unsecured bank loans Unsecured fixed rate notes Bills payable and trust receipts Finance lease liabilities Company 2011 Amount due to Scheme Creditors Sustainable debts Finance lease liabilities 2010 (Restated) Unsecured bank overdrafts Unsecured bank loans Unsecured fixed rate notes Bills payable and trust receipts Finance lease liabilities
Effective interest Floating rate interest % $000
Total $000
2.44 4.96 5.50 4.11 3.84 7.55 6.88
79,755 6,444 1,346 18,652 2,765 5,102 114,064
299 177 283 759
187 233 420
33 16 49
79,755 6,444 1,346 18,951 3,162 5,102 532 115,292
5.65 10.46 5.29 5.77 4.30 4.80 5.14
8,070 18,735 20,884 92,943 128,779 269,411
333 2,269 36,250 372 39,224
398 398
9 9
8,070 18,735 21,217 95,212 36,250 128,779 779 309,042
2.44 5.95
87,051 87,051
209 209
101 101
87,051 310 87,361
10.97 5.85 4.30 4.87 5.78
16,542 89,106 128,297 233,945
36,250 286 36,536
292 292
9 9
16,542 89,106 36,250 128,297 587 270,782
71

The expected contractual undiscounted cash (inflows)/outflows of financial liabilities, including interest payments and excluding the impact of netting agreements, are as follows: After 1 year but within Within 1 year 5 years $000 $000 Group 2011 Non-derivative financial liabilities Financial liabilities* Trade and other payables Recognised financial liabilities 2010 Non-derivative financial liabilities Financial liabilities Trade and other payables Recognised financial liabilities Company 2011 Non-derivative financial liabilities Financial liabilities* Trade and other payables Recognised financial liabilities Intragroup financial guarantees 2010 Non-derivative financial liabilities Financial liabilities Trade and other payables Recognised financial liabilities Intragroup financial guarantees
More than 5 years $000
Total $000
31,469 134,517 165,986
91,242 91,242
7,730 7,730
130,441 134,517 264,958
316,666 109,358 426,024
1,086 739 1,825
2,197 2,197
319,949 110,097 430,046
221 78,591 78,812 43,307 122,119
95,677 95,677 95,677
95,898 78,591 174,489 43,307 217,796
279,394 68,716 348,110 69,918 418,028
316 316 316
279,710 68,716 348,426 69,918 418,344
The amount above excludes non-sustainable debts of $149,985,000 and $164,743,000 for the Group and the Company, respectively.
72

17 PROVISIONS
2011 Warranties Restructuring $000 $000 991 535 1,526 2,142 2,142 2,142 2,142 Total $000 3,133 535 3,668 2,142 2,142 2010 Warranties Restructuring $000 $000 504 610 (123) 991 3,003 (861) 2,142 3,003 (861) 2,142 Total $000 3,507 610 (984) 3,133 3,003 (861) 2,142
Group At 1 April Provision made Provision utilised At 31 March Company At 1 April Provision utilised At 31 March
Warranties
The provision for warranties is based on estimates made from historical warranty data associated with similar products and services.
Restructuring
The provision for restructuring includes the estimated cost of closure of business locations in certain markets made by the Group and the Company.
18
TRADE AND OTHER PAYABLES

2011 $000 Trade payables Accrued operating expenses Deposits from customers Advance payments by customers Amount due to a director Other payables Amounts due to subsidiaries trade non-trade 34,054 83,505 5,547 1,717 9,694 134,517 Group 2010 $000 (Restated) 42,244 22,394 4,384 810 5,991 33,535 109,358 Company 2011 2010 $000 $000 (Restated) 182 71,237 11,596 613 301 5,991 2,570 24,987 2,217 1,954 78,591 17,176 8,483 68,716
Payables denominated in currencies other than the respective Group entities and the Companys functional currencies include $11,096,000 (2010: $15,283,000) and Nil (2010: $170,000) of trade payables denominated in US dollars, respectively. Included in accrued operating expenses as at 31 March 2011 is an amount of $63,000,000 relating to additional provision for potential liabilities arising from disputed contingent claims as defined under the Scheme and other Scheme-related expenses.
73

18 TRADE AND OTHER PAYABLES (contd)
The amount due to a director represents an unsecured loan and is repayable on demand. Interest charged is pegged to the interest rate of a local financial institution. As at 31 March 2010, the effective interest rate per annum was 3.5%. The basis on which liabilities (financial and non-financial) are currently recorded in the accounting records of the Company and its subsidiaries is described in note 2 of these financial statements.
19
LOSS FOR THE YEAR

The following (gains)/losses have been included in arriving at the loss for the year: Group Note (Gain)/Loss on disposal of property, plant and equipment Loss on disposal of investment properties Loss on liquidation of subsidiaries Gain on disposal of quoted available-for-sale investments Non-audit fees paid/payable to: auditors of the Company other auditors Exchange loss/(gain), net Rental income: from investment properties others Operating expenses on investment properties Amortisation of intangible assets Bad debts written off Allowance for doubtful receivables: trade non-trade Inventories written off Allowance for inventories obsolescence Impairment loss on: goodwill on consolidation available-for-sale investments Operating lease expenses Contributions to defined contribution plans included in staff costs Government grant Jobs Credit Scheme Changes in fair value of investment properties Additional provision for potential liabilities arising from disputed contingent claims as defined under the Scheme and other Scheme-related expenses 2011 $000 (23) (1,204) 397 20 4,392 (969) (281) 8 56 2,749 3,602 870 2,856 1,787 861 13,461 2,318 (28) (1,430) 63,000 2010 $000 (Restated) 3,282 636 2,964 12 13 (36,118) (1,199) (313) 8 58 4,021 4,084 280 5,188 4,228 4,556 20,389 2,044 (921) (47)
24
8 12 11 8
74

20 FINANCE INCOME AND EXPENSE
Group 2011 $000 Extinguishment of debts pursuant to the RDA of the Scheme Interest income from: bank deposits others Finance income Interest expense on: bank loans, bills payable and trust receipts fixed rate notes finance lease liabilities others Finance expense Net finance income/(expense) 75,175 140 547 75,862 (8,888) (70) (274) (9,232) 66,630 2010 $000 (Restated) 397 1,263 1,660 (4,746) (1,557) (238) (1,058) (7,599) (5,939)
21
INCOME TAX (CREDIT)/EXPENSE

Group Note 2011 $000 2010 $000 (Restated) 1,849 336 2,185 5,168 (3,136) 2,032 4,217
Current tax expense Current year (Over)/Under provision in prior years Deferred tax expense Origination and reversal of temporary differences Over provision in prior years 10 Income tax (credit)/expense
314 (384) (70) 358 (460) (102) (172)
75

21 INCOME TAX (CREDIT)/EXPENSE (contd)
Group 2011 $000 Reconciliation of effective tax rate (Loss)/Profit before income tax Income tax using domestic tax rate of 17% Effect of concessionary tax rate of 10% Effect of tax rates in foreign jurisdictions Non-deductible expenses Tax exempt revenue Utilisation of previously unrecognised tax benefits Tax benefits not recognised Over provision in prior years (net) 2010 $000 (Restated) 3,497 594 1,863 3,382 8,942 (314) (12,986) 5,536 (2,800) 4,217
(37,310) (6,343) (98) 1,141 15,473 (1,015) (8,933) 447 (844) (172)
The Global Traders Programme (GTP), which was awarded to the Company by the International Enterprise Singapore Board (IES) on 8 May 2003, had been subsequently renewed for a further period of five years commencing from 1 October 2007. IES also awarded the GTP status to a wholly-owned subsidiary of the Company for a period of five years commencing from 1 September 2007. With this GTP incentive, both the Company and the subsidiary concerned enjoy a concessionary tax rate of 10% on their qualifying income. However, the Company, together with its wholly-owned subsidiary, has voluntarily withdrawn from the GTP with effect from 1 April 2011.
22
EARNINGS PER SHARE (BASIC AND DILUTED)

Group 2011 $000 Basic earnings per share is based on: (Loss)/profit attributable to equity holders of the Company 2010 $000 (Restated) 450 2010 No. of shares 000 816,541
(33,963) 2011 No. of shares 000 816,541
Weighted average number of ordinary shares at 31 March
76

23 SEGMENT REPORTING
The Group has four reportable segments, as described below, which are the Groups strategic business units. The strategic business units offer different products or services, and are managed separately. For each of the strategic business units, the Chairman and CEO reviews internal management reports on a monthly basis. The following summary describes the operations in each of the Groups reportable segments: Retail and distribution: The retailing and distribution of consumer electronics, furniture and furnishing products to the public, distributors and dealers. Trading: The sourcing and onward selling of consumer electronics products to trading customers. Warehousing and logistics services: Provision of warehousing and logistics services. Other business: Property investment and management and rental of leasehold buildings.
Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before income tax, as included in the internal management reports that are reviewed by the Chairman and CEO. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Intersegment pricing is determined on an arms length basis.
(a)
Information about reportable segments

Retail and distribution $000 2011 Revenue and expenses Total revenue from external customers Inter-segment revenue Total revenue Finance income Finance expense Depreciation Amortisation Reportable segment (loss)/profit before income tax Warehousing and logistics services $000 Other business $000 Consolidated total $000
Trading $000
406,538 406,538 61,268 (7,367) (5,584) (56)
17,912 17,912 14,594 (1,358) (209)
252 3,166 3,418 (3) (56)
1,750 1,632 3,382 (504) (174)
426,452 4,798 431,250 75,862 (9,232) (6,023) (56)
(27,678)
(11,397)
(9)
1,774
(37,310)
77

23 SEGMENT REPORTING (contd) (a) Information about reportable segments (contd)
Retail and distribution $000 Other material non-cash items Impairment losses on: goodwill on consolidation Provision for potential liabilities arising from future court adjudication of disputed contingent claims as defined under the Scheme and other Schemerelated expenses Assets and liabilities Reportable segment assets Capital expenditure Segment liabilities 2010 (Restated) Revenue and expenses Total revenue from external customers Inter-segment revenue Total revenue Finance income Finance expense Depreciation Amortisation Reportable segment profit/(loss) before income tax Other material non-cash items Impairment losses on: other investments Assets and liabilities Reportable segment assets Capital expenditure Segment liabilities Warehousing and logistics services $000 Other business $000 Consolidated total $000
Trading $000
(861)
(861)
(63,000)
(63,000)
182,759 2,151 332,255
12,293 15 62,831
387 20 734
23,070 227 7,642
218,509 2,413 403,462
497,621 497,621 1,443 (4,651) (6,510) (58)
35,916 35,916 214 (2,769) (315)
5,162 8,023 13,185 3 (4) (109)
1,161 1,721 2,882 (175) (21)
539,860 9,744 549,604 1,660 (7,599) (6,955) (58)
23,442
(11,051)
461
(7,684)
5,168
(4,556)
(4,556)
238,077 4,523 352,651
20,597 40 66,470
1,112 30 2,032
8,493 41 1,119
268,279 4,634 422,272
78

23 SEGMENT REPORTING (contd) (a) Information about reportable segments (contd)
Reconciliations of reportable segment revenue, profit or loss, assets and liabilities and other material items: 2011 $000 2010 $000 (Restated)
Revenue Total revenue for reporting segments Elimination of inter-segment revenue Consolidated revenue Profit or loss Total (loss)/profit before tax for reportable segments Elimination of inter-segment profits Consolidated (loss)/profit before income tax Assets Total assets for reportable segments Other assets Consolidated total assets Liabilities Total liabilities for reportable segments Other liabilities Consolidated total liabilities
431,250 (4,798) 426,452 (37,310) (37,310) 218,509 91,614 310,123 403,462 2,906 406,368
549,604 (9,744) 539,860 5,168 (1,671) 3,497 268,279 90,556 358,835 422,272 2,810 425,082
No reconciliation of other material items is presented as it is not applicable.
(b)
Geographical segments
In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. Segment non-current assets are based on the geographical location of the assets.
79

23 SEGMENT REPORTING (contd) (b) Geographical segments (contd)
Geographical segments are analysed by four principal geographical areas as follows: Revenue $000 262,326 96,996 26,890 40,240 426,452 277,530 97,945 58,332 106,053 539,860 Non-current assets $000 129,115 14,395 9,342 227 153,079 128,550 14,409 9,923 152,882
2011 ASEAN East Asia and other countries Africa and Middle East CIS, Russia and Eastern Europe 2010 ASEAN East Asia and other countries Africa and Middle East CIS, Russia and Eastern Europe
24
LIQUIDATION OF SUBSIDIARIES
In the previous financial year, the Group and the Company liquidated the following subsidiaries: (i) Dai-Ichi Pte Ltd, (ii) Pick & Pay (Thailand) Ltd, (iii) Akitron Electronics (Pty) Ltd and (iv) American Appliances Pte Ltd. The effects of liquidation of subsidiaries are set out below: Note Net assets liquidated Cash and cash equivalents Trade and other receivables Property, plant and equipment Investment properties Inventories Trade and other payables Financial liabilities Current tax payables Deferred tax assets Deferred tax liabilities Net identifiable assets liquidated Loss on disposal of subsidiaries Cash proceeds from disposal Add: Cash and cash equivalents in subsidiaries liquidated Net cash inflow on disposal Carrying amounts $000 275 4,170 5,145 3,650 1,720 (4,392) (4,047) (91) 96 (28) 6,498 (2,964) 3,534 967 4,501
19
80

25 FINANCIAL RISK MANAGEMENT Overview
As disclosed in notes 2 and 16 to the financial statements, the financial position of the Group and the Company, and consequently the financial risk management and liquidity position, are dependent on the successful implementation of the Scheme of the Company. Risk management is integral to the whole business of the Group. The Group has a system of controls in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. Management continually monitors the Groups risk management process to ensure that an appropriate balance between risk and control is achieved. The Board of Directors reviews and agrees the risk management policies and systems regularly to reflect changes in market conditions and the Groups activities. The Audit Committee provides independent oversight to the effectiveness of the risk management process.
Credit risk
The Group has a credit policy in place which establishes credit limits for customers and monitors their balances on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount. Cash and fixed deposits are placed with banks and financial institutions which are regulated. At the balance sheet date, there is no significant concentration of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.
Liquidity risk
The Group monitors and maintains a level of cash and cash equivalents deemed adequate by management to meet the Groups operating commitments.
Market risk
Market risk exists due to changes in market prices that will affect the Groups income or the value of its holding in investments. The objective of the Groups market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return on risk. At the reporting date, the Group is not subject to significant equity-price risk.
Interest rate risk

The Groups exposure to changes in interest rates relates primarily to the Groups interest-bearing liabilities and interest-earning assets. These comprise mainly interest bearing borrowings and deposits in financial institutions. The Group adopts a policy of constantly monitoring movements in interest rates.
81

25 FINANCIAL RISK MANAGEMENT (contd) Interest rate risk (contd)
Sensitivity analysis For the year ended 31 March 2011, a general increase in interest rates by 50 basis points, with all other variables held constant, would increase the Groups loss before income tax (2010: decrease profit before income tax) by $570,000 (2010: $1,346,000). Similarly, a general decrease in interest rates by 50 basis points will have the equal but opposite effect. For the year ended 31 March 2011, a general increase of interest rates by 50 basis points, with all other variables held constant, would increase the Companys loss before income tax by $435,000 (2010: $1,170,000). A decrease of interest rate by 50 basis points will have the equal but opposite effect.
Foreign currency risk

The Group incurs foreign currency risk on sales, purchases and borrowings that are denominated in foreign currencies, primarily in US dollars. The Groups policy is to hedge its foreign currency exposure naturally by transacting its sales and purchases in the same currency to the extent possible. The Group hedges part of its foreign currency exposure arising from those foreign currency transactions that are not naturally hedged, when it deems fit, using forward foreign exchange contracts. At 31 March 2011, the Group has outstanding forward exchange contracts with notional principal amounts of approximately $8,702,000 (2010: $3,301,000). The Company has no outstanding forward exchange contracts at 31 March 2011 and at 31 March 2010. Sensitivity analysis For the year ended 31 March 2011, a 3% strengthening of Singapore dollar against the foreign currencies that the Group is exposed to at the reporting date would decrease the Groups loss before income tax (2010: decrease profit before income tax) by $356,000 (2010: $3,065,000). Similarly, a 3% weakening of the Singapore dollar, assuming all other variables remain constant, will have the equal but opposite effect. For the year ended 31 March 2011, a 3% strengthening of Singapore dollar against the foreign currencies that the Company is exposed to at the reporting date would increase the Companys loss before income tax by $176,000 (2010: $2,549,000). Similarly, a 3% weakening of the Singapore dollar, assuming all other variables remain constant, will have the equal but opposite effect.
82

25 FINANCIAL RISK MANAGEMENT (contd) Fair value hierarchy
The table below analyses financial instruments carried at fair value by valuation method. The different levels have been defined as follows: Level 1: Level 2: quoted prices (unadjusted) in active markets for identical assets or liabilities inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices) inputs for the asset or liability that are not based on observable market data (unobservable inputs). Level 1 $000 Group 2011 Quoted equity securities 2010 Quoted equity securities Level 2 $000 Level 3 $000 Total $000
Level 3:
2,492 2,957
2,492 2,957
The following summarises the significant methods and assumptions used in estimating the fair values of financial instruments of the Group and Company.
Estimation of fair values

Investments in quoted equity securities The fair value of available-for-sale quoted equity securities is determined by reference to their quoted bid prices at the reporting date. Interest-bearing loans and borrowings (excluding amounts due to Scheme Creditors) The carrying value of interest-bearing loans and borrowings approximate their fair values because they are either short term in nature or reprice frequently. Other financial assets and liabilities The notional amounts of financial assets and liabilities with a maturity of less than one year (including trade and other receivables, cash and cash equivalents and trade and other payables) approximate their fair values because of the short period to maturity. All other financial assets and liabilities are discounted to determine their fair values.
83

25 FINANCIAL RISK MANAGEMENT (contd) Estimation of fair values (contd)
Amounts due to Scheme Creditors The carrying amounts of the amounts due to Scheme Creditors do not approximate their fair values because substantial modifications of the terms of the original financial liabilities and other payables had been made pursuant to the Scheme. However, these amounts due to Scheme Creditors are not recorded at fair values as the directors considered it impracticable to determine such fair values as at 31 March 2011.
26
COMMITMENTS (a) Lease commitments

The Group leases a number of warehouse and office facilities under operating leases. The leases run for an initial period of 2 to 10 years, with an option to renew after that date. Lease payments are usually increased annually to reflect market rentals. As at 31 March, the Group has commitments for future minimum lease payments under non-cancellable operating leases as follows: Group 2011 $000 Payable: Within 1 year After 1 year but within 5 years After 5 years 7,168 9,266 2,567 19,001 2010 $000 9,856 7,425 2,833 20,114
The Group sub-leases out its leased warehouse and office facilities. Non-cancellable operating lease rentals are receivable as follows: Group 2011 $000 Receivable: Within 1 year After 1 year but within 5 years 870 198 1,068 2010 $000 1,346 686 2,032
84

26 COMMITMENTS (contd) (b) Capital commitments
Group and Company 2011 2010 $000 $000 Commitments for development of property contracted but not provided for in the financial statements 206,000
The capital commitments of $206,000,000 disclosed in the prior year relate to the construction activities of the retail and warehousing complex which have been temporarily suspended. The contracts signed with the contractors have been terminated.
27
CONTINGENT LIABILITIES
The Company had provided unsecured guarantees amounting to $43,307,000 (2010: $69,918,000) to banks in respect of credit facilities granted to its subsidiaries. The facilities utilised by the subsidiaries as at 31 March 2011 amounted to $11,856,000 (2010: $17,009,000). One of the subsidiaries in the Group had provided unsecured guarantees amounting to $12,555,000 (2010: $13,985,000) to a bank in respect of credit facilities granted to its subsidiary. As at 31 March 2011, $12,455,000 was utilised. In 2010, the facilities were fully utilised. As disclosed in note 2 to the financial statements, there are additional claims that are currently contingent in nature, for which the amounts have not yet been determined at the date of this statement. Whilst the directors have made additional provision for such potential liabilities arising from these disputed contingent claims as defined under the Scheme, the amounts will be adjusted when the liabilities have been determined, crystallised, or can be reasonably measured.
28
RELATED PARTIES Key management personnel compensation

Group 2011 $000 2,521 33 2010 $000 1,704 43
Short-term employee benefits Contributions to defined contribution plans
Remuneration paid to key management personnel includes salaries, fees, bonuses and other benefits-in-kind. Key management personnel comprise the Board of Directors and other key/senior management staff.
85

28 RELATED PARTIES (contd) Transactions with Group companies
The Company and its subsidiaries often carry out transactions with each other and on behalf of each other. On an on-going basis, the Company continues to work with its subsidiaries to develop new brands and trademarks, enhancement of the aesthetic design, sourcing, marketing and distribution for the Groups products, as well as acquire and grow businesses whose value could be realised via future sale or listing or similar corporate restructuring.
29
PRIOR YEAR ADJUSTMENTS

The Groups loss for the year ended 31 March 2010 was restated by $4,570,000 due to the prior year adjustments described below. As at 31 March 2010, the Group had accrued for the interest charges for debts under the Scheme based on the original contractual rates. In addition, the Group had retranslated such debts denominated in foreign currencies to Singapore Dollars at the interbank cross rates as at 31 March 2010. However, pursuant to the Scheme, the Company is to accrue interests using interest rates stipulated in the Scheme (the Scheme Interest Rates) as follows: a) b) c) 2.5% from 31 October 2008 to 31 July 2009 (the Ascertainment Date); 0% from the Ascertainment Date to the Scheme Effective Date; and Sibor + 1.5% from the Scheme Effective Date onwards.
In addition, the Company is to translate the debts denominated in foreign currencies into Singapore Dollars at the interbank cross rates as at the Ascertainment Date (the Scheme Exchange Rates). As the Scheme Effective Date was 19 April 2010, and the High Court did not grant a stay of execution of the Scheme even upon the application of several opposing creditors in April 2010, the directors are of the view that the Groups financial statements for the year ended 31 March 2010 should have reflected the interest accruals based on the Scheme Interest Rates and the Scheme Exchange Rates, rather than based on the original contractual rates and the exchange rates as at 31 March 2010. However, given that there were pending court applications and the appeal required substantial focus from the management, this was inadvertently not done by the Company, even though the directors were confident, at that time, that the Scheme would be eventually sanctioned. Accordingly, the following items of financial liabilities and other payables in relation to the financial statements for the year ended 31 March 2010 were adjusted: a) Write-back of over accrual of interest costs arising from (i) differences between original contractual interest rates and the Scheme Interest Rates, and (ii) interest-free period between the Ascertainment Date and 31 March 2010. These amounted to a gain of $10,437,000 and
86

29 PRIOR YEAR ADJUSTMENTS
b) Adjustments for differences between the foreign exchange rates as at 31 March 2010 and the Scheme Exchange Rates, amounting to an unrealised exchange loss of $5,867,000. The effects on the financial statements of the Group and the Company for the year ended 31 March 2010 are as follows: Group Company
2010 2010 2010 2010 As previously As previously reported As restated reported As restated $000 $000 $000 $000 Balance sheet Current liabilities Trade and other payables Financial liabilities Equity Reserves Total equity attributable to equity holders of the Company Total equity
119,795 300,072
109,358 305,939
79,153 264,614
68,716 270,481
(215,070)
(210,500)
(245,562)
(240,992)
(74,507) (70,817)
(69,937) (66,247)
(104,999) (104,999)
(100,429) (100,429)
Group 2010 2010 As previously reported As restated $000 $000 Income statement Other operating income Finance expense (Loss)/Profit before income tax Loss for the year 48,898 (18,036) (1,073) (5,290) 43,031 (7,599) 3,497 (720)
87

29 PRIOR YEAR ADJUSTMENTS (contd)
b) (contd) Group 2010 2010 As previously reported As restated $000 $000 Statement of cash flows Operating activities changes in working capital Loss for the year Finance expense Operating profit before changes in working capital Bills payable and trust receipts Cash generated from operations Net cash from/(used in) operating activities Repayment of interest bearing borrowings Net cash used in financing activities
(5,290) 18,036 26,796 (28,047) 753 150 (18,627) (20,069)
(720) 7,599 20,929 (24,376) (1,443) (2,046) (16,431) (17,873)
The prior year adjustments do not have an effect on the financial position as at 31 March 2009. Other than the aforesaid prior year adjustments, there may also be other potential items and/or adjustments that may require restatement as a result of the Scheme. However, the directors are unable to determine the accuracy and completeness of the assets and liabilities to be recorded as at 31 March 2010 due to the uncertainties involved (see note 2).
88
as at 31 August 2011
Statistics of Shareholdings
No of Issued Shares Class of shares Voting rights
816,541,501 Ordinary shares On a show of hands: 1 vote for each member On a poll: 1 vote for each ordinary share
Analysis Of Shareholdings
Range of Shareholdings 1 999 1,000 10,000 10,001 1,000,000 1,000,001 and above No. of Shareholders 266 804 2,386 51 3,507 % 7.58 22.93 68.04 1.45 100.00 No. of Shares 63,933 4,712,951 187,049,104 624,715,513 816,541,501 % 0.01 0.58 22.90 76.51 100.00
Shareholdings Held in Hands of Public

42% of the issued ordinary shares of the Company is held by the public and therefore Rule 723 of the Listing Manual is complied with.
Top 20 Shareholders
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 No. of Shares KBC Bank N.V. Sng Sze Hiang Tong Jia Pi Julia United Overseas Bank Nominees Pte Ltd Hong Leong Finance Nominees Pte Ltd Winmark Investments Pte Ltd HSBC (Singapore) Nominees Pte Ltd Koh Pau Moy Phillip Securities Pte Ltd Daw May Yee @ Htout Kyain DBS Nominees Pte Ltd Zeng Xiaohui Yim Ah Hoe Sng Chiap Guan @ Seng Ah Tee Low Hwa Beng Tan Boon Keng Kennedy OCBC Nominees Singapore Pte Ltd Poh Chor Tiang Chua Swee Hwa June Yap Choon Hong Name of Shareholders 131,000,000 124,963,583 100,454,245 87,878,430 34,922,200 21,118,000 12,815,200 7,669,000 7,194,862 5,850,000 5,495,287 4,569,100 4,087,000 3,954,600 3,900,000 3,591,000 3,456,400 3,255,000 3,000,000 2,839,000 572,012,907 % 16.04 15.30 12.30 10.76 4.28 2.59 1.57 0.94 0.88 0.72 0.67 0.56 0.50 0.48 0.48 0.44 0.42 0.40 0.37 0.35 70.05
89
as at 31 August 2011
Statistics of Shareholdings
SUBSTANTIAL SHAREHOLDERS OF THE COMPANY

Shareholdings beneficially held by the substantial shareholder Substantial Shareholder 1. Sng Sze Hiang 2. Tong Jia Pi Julia 3. Viking Offshore And Marine Limited 4. Lim Andy
*
Other shareholdings in which the substantial shareholder is deemed to have an interest No. of Shares 100,454,245 255,963,583 *114,734,300 Percentage (%) 12.30 31.35 14.05
No. of Shares 255,963,583 100,454,245 114,734,300
Percentage (%) 31.35 12.30 14.05
Mr Lim Andy is deemed interested in the shares (registered in the name of Viking Offshore And Marine Limited) by virtue of Section 7 of the Companies Act, Cap. 50.
90
Supplementary Information
Major property held for development:
Stage of completion Piling completed Expected date of completion Note 1 Approximate gross floor areas (sqm) 110,000 sqm Groups effective interest (%) 100
Location Jurong East Street 11
Description 8-Storey retail & warehouse complex
Intended use Retail & warehouse
Site area 5.6 hectares
Note 1 Since the financial year ended 31 March 2009, the construction activities of the property have been temporarily suspended. The Company is exploring opportunities to complete the development of the property and to realise its investment therein, with interested parties.
91
Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN THAT the Annual General Meeting of the Company will be held at 47 Sungei Kadut Avenue, Singapore 729670 on 30 September 2011 at 11.00 a.m. to transact the following business:
Ordinary Business
1 2 3 To receive and consider the audited accounts for the year ended 31 March 2011 and the reports of the Directors and Auditors thereon. To approve Directors Fees of S$150,000/- for the year ended 31 March 2011. (Year 2010: S$90,000/-) To re-elect the following Directors retiring by rotation in accordance with Article 93 of the Companys Articles of Association: (a) (b) 4 Mr Sng Sze Hiang Mr Yap Hock Soon
To re-appoint KPMG LLP as Auditors and to authorise the Directors to fix their remuneration.
Special Business
5 To consider and, if thought fit, to pass the following resolutions with or without amendments as ordinary resolutions: That pursuant to Section 161 of the Companies Act (Cap. 50) and the rules of the listing manual (Listing Manual) of the Singapore Exchange Securities Trading Limited (SGXST), authority be and is hereby given to the Directors of the Company to: (i) (ii) issue shares in the capital of the Company (Shares) (whether by way of rights, bonus or otherwise); and/or make or grant offers, agreements or options (collectively Instruments) that might or would require Shares to be issued, including but not limited to the creation and issue of warrants, debentures or other instruments convertible or exchangeable into Shares,
5(a) (1)
at any time and upon such terms and conditions and for such purposes and to such persons as the Directors may in their absolute discretion deem fit; and (2) notwithstanding the authority conferred by this resolution may have ceased to be in force, issue Shares in pursuance of any Instrument made or granted by the Directors while this resolution is in force, PROVIDED THAT: (i) the aggregate number of Shares to be issued pursuant to this resolution (including Shares to be issued in pursuance of Instruments made or granted pursuant to this resolution but excluding Shares which may be issued pursuant to any adjustments effected under any relevant Instrument) does not exceed 50 per cent. of the total number of issued shares (excluding treasury shares) in the capital of the Company (as calculated in accordance with sub-paragraph (ii) below), of which the aggregate
92

number of Shares to be issued other than on a pro-rata basis to shareholders of the Company (including Shares to be issued in pursuance of Instruments made or granted pursuant to this resolution but excluding Shares which may be issued pursuant to any adjustments effected under any relevant Instrument) does not exceed 20 per cent. of the total number of issued shares (excluding treasury shares) in the capital of the Company (as calculated in accordance with sub-paragraph (ii) below); (ii) subject to such manner of calculation as may be prescribed by the SGX-ST, for the purpose of determining the aggregate number of Shares that may be issued under sub-paragraph (i) above: (a) the total number of issued shares (excluding treasury shares) shall be based on the total number of issued shares (excluding treasury shares) in the capital of the Company at the time of the passing of this resolution, after adjusting for: (aa) new Shares arising from the conversion or exercise of any convertible securities and share options that have been issued pursuant to any previous shareholders approval and which are outstanding as at the date of the passing of this resolution; and (bb) any subsequent bonus issue, consolidation or subdivision of Shares; and (b) in relation to an Instrument, the number of Shares shall be taken to be that number as would have been issued had the rights therein been fully exercised or effected on the date of the making or granting of the Instrument;
(iii)
in exercising the authority conferred by this resolution, the Company shall comply with the requirements imposed by the SGX-ST from time to time and the provisions of the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST) and the Articles of Association of the Company for the time being; and unless revoked or varied by the Company in general meeting, the authority conferred by this resolution shall continue in force until the conclusion of the next annual general meeting of the Company or the date by which the next annual general meeting of the Company is required by law to be held, whichever is the earlier. [See Explanatory Note (a) set out below]
(iv)
5(b) That approval be and is hereby given to the Directors to offer and grant options in accordance with the provisions of the TT International Employees Share Option Scheme (the Option Scheme) (including options over shares at a subscription price per share set at a discount to the market price of a share), and to allot and issue from time to time such number of shares in the capital of the Company as may be required to be issued pursuant to the exercise of the options under the Option Scheme, provided that the total number of shares issued and issuable in respect of all options granted thereunder and all awards granted under the TT International Performance Share Plan shall not exceed 15 per cent. of the total number of issued shares (excluding treasury shares) in the capital of the Company from time to time. [See Explanatory Note (b) set out below]
93

5(c) That approval be and is hereby given to the Directors to offer and grant awards in accordance with the provisions of the TT International Performance Share Plan (the Share Plan), and issue from time to time such number of shares in the capital of the Company as may be required to be issued pursuant to the granting of the awards under the Share Plan provided that the total number of shares issued and issuable in respect of all awards granted thereunder and all options granted under the Option Scheme shall not exceed 15 per cent. of the total number of issued shares (excluding treasury shares) in the capital of the Company from time to time. [See Explanatory Note (c) set out below] To transact any other business which may properly be transacted at an Annual General Meeting.
6.
BY ORDER OF THE BOARD KOH SOCK TIN COMPANY SECRETARY Singapore, Date: 15 September 2011
Proxies: A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote in his stead. A proxy need not be a member of the Company. An instrument appointing a proxy must be deposited at the Companys registered office at 47 Sungei Kadut Avenue, Singapore 729670 not less than 48 hours before the time appointed for holding the Meeting. Notes: (a) Resolution no. 5(a), if passed, will empower the Directors from the date of the above Meeting until the date of the next Annual General Meeting, to issue shares and convertible securities in the Company up to a number not exceeding in total 50 per cent. of the total number of issued shares (excluding treasury shares) in the capital of the Company, with a sub-limit of 20 per cent. for issues other than on a pro-rata basis to shareholders, as more particularly set out in the resolution. Resolution no. 5(b), if passed, will empower the Directors to offer and grant options and to allot and issue shares in the capital of the Company pursuant to the exercise of the options under the Option Scheme. Resolution no. 5(c), if passed, will empower the Directors to offer and grant awards in accordance with the Share Plan and to issue shares in the capital of the Company pursuant to the granting of the awards under the Share Plan.
(b) (c)
94
TT INTERNATIONAL LIMITED
(Incorporated in the Republic of Singapore) (Company Registration No. 198403771D)
IMPORTANT 1 For investors who have used their CPF monies to buy shares of TT International Limited, this report is forwarded to them at the request of their CPF Approved Nominees and is sent solely FOR INFORMATION ONLY. This Proxy Form is not valid for use by CPF Investors and shall be ineffective for all intents and purposes if used or purported to be used by them.
PROXY FORM
I/We of
, NRIC/Passport no.
being a member/members of TT International Limited hereby appoint Name Address NRIC/ Passport No. No. of Shares
and/or (delete as appropriate) Name Address NRIC/ Passport No. No. of Shares
as my/our proxy/proxies to attend and to vote for me/us on my/our behalf and, if necessary, to demand a poll at the Annual General Meeting of the Company to be held at 47 Sungei Kadut Avenue, Singapore 729670 on 30 September 2011 at 11.00 a.m. and at any adjournment thereof. (Please indicate with an X in the spaces provided whether you wish your vote(s) to be cast for or against the resolutions as set out in the Notice of Annual General Meeting. In the absence of specific directions, the proxy/proxies will vote or abstain as he/they may think fit, as he/they will on any other matters arising at the Annual General Meeting.)
No. 1 2 3 Resolutions To adopt the reports and accounts To approve directors fees To re-elect the following directors retiring under Article 93: (a) (b) 4 5 Mr Sng Sze Hiang Mr Yap Hock Soon For Against
To re-appoint KPMG LLP as auditors Special Business 5(a) 5(b) 5(c) To authorise directors to issue shares pursuant to Section 161 of the Companies Act, Cap. 50 To authorise directors to offer and grant options and issue shares pursuant to the TT International Employees Share Option Scheme To authorise directors to offer and grant awards and issue shares pursuant to the TT International Performance Share Plan
Dated this
day of
2011 Total Number of Shares Held
Signature(s) of Member(s) or Common Seal
IMPORTANT PLEASE READ NOTES OVERLEAF
Notes 1 Please insert the total number of shares held by you. If you have shares entered against your name in the Depository Register (as defined in Section 130A of the Companies Act, Cap. 50), you should insert that number. If you have shares registered in your name in the Register of Members of the Company, you should insert that number. If you have shares entered against your name in the Depository Register and shares registered in your name in the Register of Members, you should insert the aggregate number. If no number is inserted, this form of proxy will be deemed to relate to all the shares held by you. A member entitled to attend and vote at a meeting of the Company is entitled to appoint not more than two proxies to attend and vote on his behalf. A proxy need not be a member of the Company. The instrument appointing a proxy or proxies must be deposited at the Companys registered office at 47 Sungei Kadut Avenue Singapore 729670 not less than 48 hours before the time appointed for the meeting. Where a member appoints more than one proxy, he shall specify the number of shares to be represented by each proxy, failing which, the appointment shall be deemed to be in the alternative. The instrument appointing a proxy or proxies must be under the hand of the appointor or of his attorney duly authorised in writing. Where the instrument appointing a proxy or proxies is executed by a corporation, it must be executed under its common seal or under the hand of its attorney or by an officer on behalf of the corporation. Where an instrument appointing a proxy or proxies is signed on behalf of the appointor by an attorney or other authority, the power of attorney or authority or a notarially certified copy thereof must be lodged with the instrument of proxy, failing which the instrument of proxy may be treated as invalid. A corporation which is a member may authorise by resolution of its directors or other governing body such person as it thinks fit to act as its representative at the meeting, in accordance with Section 179 of the Companies Act, Cap. 50. The Company shall be entitled to reject an instrument of proxy which is incomplete, improperly completed, illegible or where the true intentions of the appointor are not ascertainable from the instructions of the appointor specified on the instrument of proxy. In addition, in the case of shares entered in the Depository Register, the Company may reject an instrument of proxy if the member, being the appointor, is not shown to have shares entered against his name in the Depository Register as at 48 hours before the time appointed for holding the meeting, as certified by The Central Depository (Pte) Limited to the Company.
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TT International 2011 Annual Report

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TT International 2011 Annual Report

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Corporate Information

Company Secretary Registrars and Transfer Office

Corporate Governance Report

Corporate Governance Report

Corporate Governance Report

(3) (4) (5) (6) (7)

Corporate Governance Report

Corporate Governance Report

Corporate Governance Report

Fees (%) 100.0 100.0 100.0

Salary (%) 55.9 52.0 90.6

Bonus (%) 12.7 11.8 7.2

Others (%) 31.4 36.2 2.2

Corporate Governance Report

Internal Controls Principle 12: Sound system of internal controls

Corporate Governance Report

Internal Audit Principle 13: Independent internal audit function

Corporate Governance Report

Interested Person Transactions

Prole of Directors and Key Management Personnel

TONG JIA PI JULIA Executive Director

YAP HOCK SOON Executive Director

Prole of Directors and Key Management Personnel

NG LEOK CHENG Independent Director

YO NAGASUE Independent Director

KEY MANAGEMENT PERSONNEL GOH CHONG THENG Finance Director/CFO

255,963,583 100,454,245 195,000 195,000 1,628,000

255,963,583 100,454,245 195,000 195,000 1,628,000

255,963,583 100,454,245 195,000 195,000 1,628,000

On behalf of the Board of Directors

Sng Sze Hiang Director

Tong Jia Pi Julia Director 1 September 2011

Sng Sze Hiang Director

Tong Jia Pi Julia Director 1 September 2011

Members of the Company TT International Limited

Independent Auditors Report

Report on the financial statements

Members of the Company TT International Limited

Independent Auditors Report

Report on other legal and regulatory requirements

124,148 7,979 14,735 2,492 3,725 153,079

51,836 89,296 15,912 157,044

74,411 120,403 11,139 205,953 358,835

19 104,366 244 104,629 210,913

19 136,019 358 136,396 241,387

140,563 (237,499) (96,936) 691 (96,245)

140,563 (210,500) (69,937) 3,690 (66,247)

140,563 (262,518) (121,955) (121,955)

140,563 (240,992) (100,429) (100,429)

235,202 155 235,357

3,103 739 174 4,016

134,517 30,075 3,668 2,751 171,011

109,358 305,939 3,133 2,636 421,066 425,082 358,835

78,591 209 2,142 31 80,973 332,868 210,913

68,716 270,481 2,142 176 341,515 341,816 241,387

Total liabilities Total equity and liabilities

The accompanying notes form an integral part of these financial statements.

Year ended 31 March 2011

Consolidated Income Statement

66,630 (37,310) 172 (37,138)

(33,963) (3,175) (37,138) 2011 Cents

450 (1,170) (720) 2010 Cents 0.06

Earnings per share Basic and diluted