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ASIAN MICRO HOLDINGS LIMITED

Growing Our Green Potential

AnnuAl RepoRt

2011

CONTENTS
01 Corporate Information 02 Corporate Profile 04 Chairman’s Message 06 Board of Directors 08 Key Management 09 Financial Highlights 11 Report on Corporate Governance 20 Directors’ Report 26 Statement by Directors 27 Independent Auditors’ Report 29 Balance Sheets 31 Consolidated Statement of Comprehensive Income 32 Statements of Changes in Equity 35 Consolidated Cash Flow Statement 37 Notes to the Financial Statements 93 Statistics of Shareholdings 94 Shareholder’s Information 95 Notice of Annual General Meeting Proxy Form

This annual report has been prepared by the Company and its contents have been reviewed by the Company’s sponsor (“Sponsor”), Asian Corporate Advisors Pte. Ltd. for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (“SGX-ST”). The Company’s Sponsor has not independently verified the contents of this annual report including the correctness of any of the figures used, statements or opinions made. This annual report has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this annual report including the correctness of any of the statements or opinions made or reports contained in this annual report. The contact person for the Sponsor is Mr. Liau H.K. Telephone number: 6221 0271

Corporate InformatIon
Board of directors
Executive Lim Kee Liew @ Victor Lim CEO and Group Managing Director Lin Xianglong Winchester Executive Director Ng Chee Wee Executive Director and Group Financial Controller Non-Executive Dr. Wang Kai Yuen Non-Executive Chairman Teo Kio Choon @ Chang Chiaw Choon Independent Director Chue Wai Tat Independent Director

remuNeratioN committee
Dr. Wang Kai Yuen Chairman

Teo Kio Choon @ Chang Chiaw Choon Chue Wai Tat

compaNy secretary
Lee Ellen

registered aNd BusiNess office
1 Tech Park Crescent Tuas Tech Park Singapore 638131 Tel: 6862 7777 / Fax: 6862 6277 Website: http://www.asianmicro.com.sg

BaNkers

audit committee
Dr. Wang Kai Yuen Chairman

Malayan Banking Berhad United Overseas Bank Limited

share registrar

Teo Kio Choon @ Chang Chiaw Choon Chue Wai Tat

B.A.C.S. Private Limited 63 Cantonment Road Singapore 089758

NomiNatiNg committee

coNtiNuiNg spoNsor

Teo Kio Choon @ Chang Chiaw Choon Chairman Dr. Wang Kai Yuen Chue Wai Tat

Asian Corporate Advisors Pte Ltd 112 Robinson Road #03-02 Singapore 068902

auditors

Ernst & Young LLP One Raffles Quay North Tower Level 18 Singapore 048583 Partner-in-charge: Philip Ling (Since financial year ended 30 June 2011)

Annual Report 2011

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a s i a N m i c ro hoL diNgs L im it ed 2 Asian Micro Holdings Limited .

reduces pollutants PM2. It can also be used for powering of natural gas engines.5 and many other hazardous hydrocarbon emissions. heat treatment and power generation. provides Compressed Natural Gas (“CNG”) supply related products & services. marine and offshore. The Group is also serving these industries with clean room grade plastic packaging bags and materials for packaging cleaned finished products. The Group’s secondary core business is in recycling and precision cleaning of packaging trays and media/disk cassettes used in the hard disk drive and semiconductor industries in Singapore and Thailand. CNG tractors and CNG forklifts which cut down CO2 emission. The Group continually explores innovative methods of introducing industrial consumers to the use of natural gas and energy saving methods. Annual Report 2011 3 . The Group is supplying CNG skids which are used for storing and transporting CNG to the local industries for gas cutting. shipyard and manufacturing industries. sells or leases specialized vehicles like CNG prime movers. and off-the-road vehicles. aviation. natural gas to the industries for powering up power generator to reduce electricity cost. The Group also imports.Corporate profIle Asian Micro Holdings Limited (listed in the SGX-SESDAQ in September 1999). The Group provides natural gas as an alternative fuels which is gaining popularity in the shipyard industries to be used for steel gas cutting. shareholders and its staff. The Group will embark on growth on energy related business and strive to add value to customers. Our customers are namely from the oil and gas.

CHaIrman’S meSSaGe “On behalf of the Board of Directors. with the closure of non-profitable companies. This ultimately affected our cleaning service and clean room plastic packaging bags manufacturing business. cessation of several businesses in China and decrease in sales of plastics bag manufacturing. The net loss incurred in FY 2011 is mainly due to weakening of United States Dollar and Thailand Baht against Singapore Dollar and allowance for stocks obsolescence. We believe that.9 million or an increase of 29% compared to the net loss of S$3.6 million in FY 2011. Wang Kai Yuen. partially offset by the infrastructure project which the Group has secured with one major industrial aviation customer. the Group’s consolidated revenue decreased 59% or S$12. The poor performance of tray cleaning business which was affected by the HDD downturn has resulted in the disposal of our subsidiaries in the second half of FY 2011.” Dr.0 million in FY 2010. The Group has secured a contract with one major industrial aviation customer for the Compressed Natural Gas (“CNG”) downloading infrastructure project and the supply of CNG. I am presenting the Annual Report and the Audited Financial Statements of Asian Micro Holdings Limited and its subsidiaries for the financial year ended 30 June 2011. Net loss attributable to shareholders after taking into consideration of taxation and minority interest amounted to S$3.1 million from S$20. However. our effort to develop a new business based on clean energy has paid off. Chairman fiNaNciaL performaNce For FY 2011.7 million in FY 2010 to S$8. 4 Asian Micro Holdings Limited . FY 2011 remained competitive for the Group as the global export market for storage devices was badly affected by the drop in demands for the hard disk drives (“HDD”). The decrease in revenue is mainly due to the decrease in sales of Natural Gas Vehicles (“NGV”) in Thailand. we would be able to reduce our losses and operate more efficiently to improve the Group’s results.

heat treatment processes. The Group has renewed a 2-year agreement with its major customer to provide tray washing and transport and logistical support service in Thailand.CHaIrman’S meSSaGe LookiNg ahead The precision tray cleaning segment in the HDD business will remain challenging and the Group will continue its cost cutting effort to render all the subsidiaries profitable. We will continue to improve on our business strategies to generate new sources of revenue and earnings for the Group. thereby enhancing shareholders’ value in the long run. We pledge to provide timely and accurate information through announcements and investor relations activities for the benefits of all stakeholders. corporate goverNaNce The Group remains committed to maintaining our regime of high standards of corporate governance. The Group had secured a contract with one major industrial aviation customer for the supply of natural gas over a period of up to 5 years and one major shipyard customer in the construction of CNG cylinders storage skids and pressure regulating system skids for the gas-cutting activities. The Group will continue to promote the use of natural gas in the manufacturing and service industries for the purposes of gas cutting. We also acknowledge the strong support of our customers. Last. dr. Wang kai yuen Chairman 30 September 2011 Annual Report 2011 5 . I would like to thank all shareholders for their continued loyalty and support to the Company despite the continued losses. I would like to thank all staff and management for their dedicated service and sacrifice in FY 2011 and hope that FY 2012 will yield better results. but not least. appreciatioN On behalf of the Board. powering of natural gas tractors and electrical power generation in the marine and offshore industries. bankers and business associates of our Company in 2011 and we are looking forward to your strong support to help us to achieve a better 2012 and beyond. The Group will also upgrade its plastic bag manufacturing machineries progressively to ensure its quality so as to obtain more orders from our major customers.

BoarD of DIreCtorS D C A E F B 6 Asian Micro Holdings Limited .

BOARD OF DIRECTORS A. He holds a Diploma in Marketing from Nanyang Polytechnic. EOC Ltd. Ezion Holdings Ltd. ng chee Wee Mr. He has the overall responsibility for the Group’s finance. Mr. Chue Wai Tat was appointed as an Independent Non-Executive Director of the Company in July 2011. He was qualified and admitted as a Fellow member of the Association of Chartered Certified Accountants (ACCA) and a non-practicing Fellow member of the Institute of Certified Public Accountants of Singapore (ICPAS). He holds several other directorships including directorships in ComfortDelGro Corporation Limited. He is also the Chairman of the Group’s Nominating Committee and a member of the Audit and Remuneration Committees. He holds a Diploma with Merit in Accountancy from Ngee Ann Polytechnic in Singapore and completed the Association of Chartered Certified Accountants course in 2000. Ng has more than 10 years’ experience in the accounting and finance fields for various industries. a management consultancy firm since 1992. an SME. Mr. A-Sonic Aerospace Ltd and China Aviation Oil (Singapore) Corporation Ltd. D. Hiap Hoe Ltd. Mr. He started his career with the Inland Revenue Department (now known as Inland Revenue Authority of Singapore) for 10 years before joining the private sector. USA. liM Kee lieW @ Victor liM Mr. Victor Lim holds a Diploma in Production Engineering from the Singapore Polytechnic and has more than 25 years experience in the electronic and hard disk drive industry. Since March 2011. lin XiAnglong Winchester Mr. He retired as Managing Director of Fuji Xerox Singapore Software Centre in December 2009. assisting in its accounting and administration. Matex International Ltd. Dr. Dr. before retiring on 31 December 2009. Chue holds a Bachelor of Social Science (Economics & Political Science) (Hons) from the University of Singapore. SuperBowl Holdings Ltd. legal and tax functions. Victor Lim is the key founder of the Group and currently provides the overall strategic direction and policy decisions of the Group. Xpress Holdings Ltd. Prior to this. Winchester Lin joined the Group as a Sales Executive in June 2007 and was subsequently promoted to Business Development Manager in September 2008 and Deputy Managing Director in October 2008. Victor Lim was the Engineering Support Manager in Micropolis Singapore Ltd (a producer of high capacity Hard Disk Drives) from 1983 to 1989. Mr. he has taken up a retirement position with Boxson Packaging Industries Pte Ltd. Wang Kai Yuen was appointed as the Independent Non-Executive Chairman of the Group on 26 August 2006. COSCO Corporation (Singapore) Ltd. Ng Chee Wee joined the Group in August 2010 as Group Financial Controller and was appointed as an Executive Director of the Company in May 2011. accounting. c. chue WAi tAt Mr. mainly in senior finance position in MNC and GLC such as Group/Regional/Controller of MNC (Universal Furniture. WAng KAi Yuen Dr. Winchester Lin is the son of the CEO and Group Managing Director. Mr. Asia Pacific Resources International Ltd) and VP Group Finance of Media Corporation of Singapore Pte Ltd. he is now responsible for the Clean Room packaging materials business for the Hard Disk Drive industries (“HDD”) in Singapore and Thailand. Lim Kee Liew @ Victor Lim is the Chief Executive Officer and Group Managing Director of the Company. Chang holds a Bachelor of Science (Hons) degree from the Nanyang University. He is a Fellow member of the Association of Chartered Certified Accountants (ACCA) and a nonpractising member of the Institute of Certified Public Accountants of Singapore (ICPAS). Mr. Prior to setting up the Group. He had been an Independent Director of the Group since 1999. Victor Lim. Besides overseeing the operation of the CNG conversion centres in Thailand. He is also the overall responsible person for marketing department for the Group’s business activities in Singapore and Thailand. Teo Kio Choon @ Chang Chiaw Choon is an Independent Non-Executive Director of the Company since 1999. Mr. Wang holds a Bachelor of Engineering (Electrical Engineering) (Hons) from the University of Singapore and a Masters of Science (Industrial Engineering). Annual Report 2011 7 . treasury. Lin Xianglong Winchester was appointed as an Executive Director of the Company in August 2011. Seagate Technology. B. He is a partner of KC Teo Consultants. He has accumulated more than 20 years of experience. teo Kio choon @ chAng chiAW choon Mr. HLH Ltd. Mr. a Masters of Science (Electrical Engineering) and a PhD (Engineering) from Stanford University. He is also the Chairman of the Company’s Audit and Remuneration Committees and a member of the Nominating Committee. F. e. He is the Deputy Managing Director for the Group’s Natural Gas Vehicle (“NGV”) related business division in Thailand.

8 Asian Micro Holdings Limited . Mavet Ang is the Sales and Marketing Executive for ACI Industries Pte Ltd. Lim See Wai is the Assistant Engineering Director for AM NGV (S) Pte Ltd. She is currently working as an advisor for the Company and director of the subsidiaries. Besides overseeing the operation. mr. Ng cher Lek Mr. ms.KeY manaGement ms. He is responsible for the marketing and operation for the manufacturing of the Clean Room PE Bags for the Hard Disk Drive industries (“HDD”) and other industries. She holds a Bachelor of Science in Applied Accounting (Hons) from the Oxford Brookes University and completed the Association of Chartered Certified Accountants course in 2003. mr. mavet aNg Mr. Lim see Wai Mr. He is responsible for the development and expansion of CNG-related projects and has more than 3 years’ experience in this field. He holds a Diploma in Mechanical Engineering from Singapore Polytechnic and a Diploma in Management Studies from SIM. Senior Engineering Manager & Senior Operation Manager. Victor Lim. She is the spouse of the CEO and Group Managing Director. LeoNg Lai heNg Ms. yaNg Lei Ms. Yang Lei is the Group Accountant responsible and overseeing the group’s accounting. He holds a Bachelor’s degree in Mechanical Industry Engineering (IE) from University Technology Malaysia (UTM). and mother of the Executive Director. Lin Xianglong Winchester. He is responsible for the cleaning and recycling operations in Singapore and supporting the Deputy Managing Director for business development and sales. She has 10 years’ experience in accounting and finance fields for various industries. he is also responsible for the business development of the Company. He joined the Company as a Customer Service Officer and was subsequently re-designated to the current position. He has more than 20 years of manufacturing experience in the hard disk drive and semiconductor industries in various operational departments and holding positions of Production/Manufacturing Manager. He joined the company as a Mechanical Engineer and was subsequently promoted to Project Development Manager in October 2008 and Assistant Engineering Director in October 2009. Ng Cher Lek is the Production Manager for ACI Industries Pte Ltd. financial and tax functions. mr. Leong Lai Heng was an Executive Director of the Company since February 1997 and has resigned from the Board in August 2011. She is a member of the Association of Chartered Certified Accountants (ACCA) and a non-practising member of the Institute of Certified Public Accountants of Singapore (ICPAS).

fInanCIal HIGHlIGHtS
2007 S$’000 ( restated) resuLts of operatioN Turnover Profit / (Loss) before taxation and non-controlling interest Taxation Profit / (Loss) from discontinued operation, net of tax Profit / (Loss) after taxation but before non-controlling interest Attributable to : Owners of the parent Non-controlling interest fiNaNciaL positioN Fixed Assets Goodwill on Acquisition Investment Property Associated Company Current Assets Current Liabilities Net Current Assets Non Current Liabilities represeNtiNg Shareholders’ Equity Non-controlling interest EPS before Taxation (S$cents) EPS after Taxation & NCI (S$cents) NTA per Share (S$cents) 12,576 306 0.49 0.52 4.00 12,204 404 (1.59) (1.59) 3.66 4,888 250 (2.17) (2.17) 1.45 1,997 170 (0.83) (0.84) 0.60 1,197 (419) (1.00) (0.96) 0.17 9,464 752 2,600 469 10,993 (8,515) 2,478 (2,881) 5,183 – 3,200 353 12,198 (6,576) 5,622 (1,750) 2,066 – – 326 7,953 (5,023) 2,930 (184) 1,716 – – – 6,602 (6,047) 555 (105) 1,098 – – – 4,177 (4,028) 149 (469) 1,679 (125) (5,445) (187) (7,499) (171) (3,023) (58) (3,897) (532) 14,584 (777) (41) 2,372 1,554 21,115 (5,496) 9 (145) (5,632) 12,113 (7,678) 8 – (7,670) 20,704 (3,011) (70) – (3,081) 8,575 (4,640) 211 – (4,429) 2008 S$’000 2009 S$’000 2010 S$’000 (reclassified) 2011 s$’000

Annual Report 2011

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fInanCIal HIGHlIGHtS
turNover
(S$’000)

turnover by region (S$’000)
Singapore 7,100 1,118 357 8,575

20,704

14,584

12,113

21,115

8,575

Thailand China/HK

Thailand 1,118

China/HK 357

2011

2010

2009

2008

2007

Net profit (Loss) attriButaBLe to sharehoLders (S$’000)

Singapore 7,100

turnover by business activities (S$’000)
Tray recycling Manufacturing 3,483 2,014 183 2,895 8,575

2011

2010

2009

2008

2007

1,679

Plastic waste recycling NGV related

NGV related 2,895
3,897 3,023 7,499 5,445

Tray recycling 3,483

Plastic waste recycling 183

Manufacturing 2,014

10 Asian Micro Holdings Limited

REPORT ON CORPORATE GOVERNANCE
Asian Micro Holdings Limited (the “Company”) recognizes the importance of corporate governance and is committed to uphold the high standards of corporate governance, and to put in place effective self-regulatory corporate practices to preserve and enhance long term shareholders’ value. This report outlines the Company’s corporate governance practices with specific reference to the Code of Corporate Governance 2005 (the “Code”).

BOARD MATTERS
Principle 1 Board’s Conduct of its Affairs

The Board meets regularly, both formally and informally, and as frequent as warranted by particular circumstances. The principal functions of the Board, apart from its statutory responsibilities are: (a) to approve the Group’s corporate policies, financial objectives and direction of the Group and monitoring performance of management; to approve annual budgets, key operational issues, major funding and investment proposals; to set overall strategies and supervision of the Group’s business and affairs; to review the financial performance of the Group; to approve nominations of Directors and appointment to the various Board committees and key managerial personnel; and to assume responsibility for corporate governance.

(b) (c) (d) (e)

(f)

The Board discharges its responsibilities either directly or indirectly through the various Board committees. The Board delegates the formulation of business policies and day-to-day management to the Chief Executive Officer. The Board conducts regular scheduled meetings. In the financial year under review, the Board met twice. Ad-hoc meetings are convened as and when required. The Articles of Association of the Company allows a Board Meeting to be conducted by way of a tele-conference or any other electronic means of communications. The attendance of Directors at meetings of the Board and Board committees, as well as the frequency of such meetings, is disclosed in this report. A formal letter of appointment is provided to all new Directors. The letter indicates the amount of time commitment required and the scope of duties. The Company has adopted a policy that welcomes the Directors to request for further explanations, briefings or informal discussions on any aspect of the Company’s operations or businesses from the Management. Newly appointed Directors will receive appropriate training and orientation programmes to familiarize themselves with the operations of the Company and its major business processes. The Management monitors changes to regulations and accounting standards closely. To keep pace with accounting, legal, industry specific knowledge and regulatory changes, where these changes have an important bearing on the Company or Directors’ disclosure obligations, Directors are briefed either during Board meetings or at specially convened sessions.

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Members of the Board are constantly in touch with the Management to provide advice and guidance on strategic issues and on matters for which their expertise will be constructive to the Group. Wang Kai Yuen (Chairman) Mr. Ng Chee Wee (Executive Director & Group Financial Controller) (Appointed on 6 May 2011) Independent Non-Executive Directors Dr. and collectively possess the necessary core competencies for effective functioning and informed decision-making. Key information on the Directors is set out below and on pages 6 and 7 of this Annual Report. Chue Wai Tat (Appointed on 6 July 2011) The Nominating Committee is of the view that the current Board comprises Directors who. the members of the Board are: Executive Directors Mr. Teo Kio Choon @ Chang Chiaw Choon Mr. expertise and experience. Lin Xianglong Winchester (Executive Director) (Appointed on 24 August 2011) Mr. Chue Wai Tat 64 12 Asian Micro Holdings Limited . Lim Kee Liew @ Victor Lim Age 54 Due for re-election at next AGM – Retiring pursuant to Article 88 Retiring pursuant to Article 88 – Retiring pursuant to Article 89 Retiring pursuant to Article 88 Mr. Lim Kee Liew @ Victor Lim (Chief Executive Officer & Group Managing Director) Mr. The Board will constantly examine its size. The Board has reviewed its composition of Directors and is satisfied that such composition is appropriate for the nature and scope of the Group’s operations and facilities effective decision-making. Lin Xianglong Winchester 27 Mr. Teo Kio Choon @ Chang Chiaw Choon 64 Mr. Wang Kai Yuen 64 Mr. Directorship (a) Date first appointed (b) Date last re-elected (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) (a) (b) 18/2/1997 NA 24/8/2011 – 6/5/2011 – 20/8/1999 28/10/2009 20/8/1999 23/10/2008 6/7/2011 – Name of Director Mr. Ng Chee Wee 38 Dr.REPORT ON CORPORATE GOVERNANCE Principle 2 Board Composition and Balance Currently. have the appropriate mix of diversity. with the view to determining its impact upon its effectiveness.

Chue Wai Tat The principal functions of the NC are: (a) to identify candidates. exercising control over quality. The responsibilities of the Chairman include: (a) (b) (c) (d) (e) (f) scheduling meetings that enable the Board to perform its duties responsibly while not interfering with the flow of the Company’s operations. The Chairman and the Chief Executive Officer are not related. is an independent Director. Lin Xianglong Winchester and Mr. assisting to ensure compliance with the Company’s guidelines on corporate governance. to review the Board structure and size including the composition of the Board generally and the balance between executive and non-executive Directors appointed to the Board. the proposed appointee’s background. Teo Kio Choon @ Chang Chiaw Choon Dr. (Chairman) (b) (c) (d) (e) (f) (g) The NC has adopted written terms of reference. quantity and timeliness of the flow of information between Management and the Board. to decide how the performance of the Board may be evaluated and to propose objective performance criteria. Ng Chee Wee. to review the independence of each Director annually. are independent non-executive Directors.REPORT ON CORPORATE GOVERNANCE Principle 3 Chairman and Chief Executive Officer The roles of the Chairman and Chief Executive Officer are separate to ensure an appropriate balance of power. functions. encourage effective communication with shareholders. increased accountability and greater capacity of the Board for independent decision-making. sets business strategies and directions for the Group and manages the business operations of the Group with Mr. Principle 4 Board Membership The Nominating Committee (“NC”) comprises three Directors. the Chief Executive Officer and Group Managing Director. to report to the Board its findings from time to time on matters arising and requiring the attention of the NC. The members are: Mr. facilitating the effective contribution of non-executive directors. and encouraging constructive relations between executive. Mr. duties and responsibilities as may be requested by the Board. The Chairman. Wang Kai Yuen Mr. to assess the effectiveness of the Board as a whole. For the appointment of new candidates to the Board. who are Executive Directors and other management staff. non-executive directors and management. and to undertake such other reviews. and the contribution by each Director to the effectiveness of the Board. projects. experience and other board memberships will be taken into account. review nominations for both appointment and re-appointment of the Directors to the Board for its approval. Dr. Annual Report 2011 13 . including the Chairman. and make recommendations to the Board with regard to any adjustments that are deemed necessary. of whom. Wang Kai Yuen. Lim Kee Liew @ Victor Lim.

The Board adopts the independence test recommended by the Code. The Board has separate and independent access to the Company’s senior management and the Company Secretary to address any enquires at all times. The Directors of the Company submit themselves for re-nomination and re-election at the regular intervals at least every 3 years. Wang Kai Yuen Teo Kio Choon @ Chang Chiaw Choon Tan Siew Bin.” Principle 5 Board Performance In determining the objective performance criteria for evaluation and determination for the FY2011. The Board papers include sufficient information on financial. Mr. the NC had considered the attendance. The attendances of the Directors at meetings of the Board and Board Committees during the year are as follows: Board Meeting No. Mr. The Company has in place a system to access the performance of the Board as a whole. Lin Xianglong Winchester. new Directors must submit themselves for re-election at the next Annual General Meeting (“AGM”) of the Company and one-third of the Directors who are eligible for re-election must retire by rotation at every AGM. of meeting held : 2 Audit Committee 2 Remuneration Committee 1 Nominating Committee 1 Name of Director : Lim Kee Liew @ Victor Lim Leong Lai Heng1 Chan Sze Ming2 Dr. Chue Wai Tat and Mr. and on an ongoing basis. Key information regarding the directors is set out in this Annual Report under the heading titled “Board of Directors. Ng Chee Wee. the NC considers and determines the independence of directors. Taking into account the independence test. 14 Asian Micro Holdings Limited . Ronnie3 1 2 3 2 2 2 2 2 2 NA NA NA 2 2 2 NA NA NA 1 1 1 NA NA NA 1 1 1 resigned on 24 August 2011 resigned on 1 June 2011 resigned on 25 May 2011 Principle 6 Access to Information Board members are provided with adequate and timely information prior to Board meetings.REPORT ON CORPORATE GOVERNANCE In accordance with Article 88 and Article 89 of the Articles of Association of the Company. The NC has recommended the nominations of Mr. have separate and independent access to the Company’s senior management. Detailed Board Committee/ Board papers are prepared for each Board Committee/Board meeting. business and corporate issues from Management to enable Directors to be properly informed on issues to be considered at Board Meetings. The result of the exercise is reviewed by the NC before submitting to the Board for discussing and determining areas for improvement and enhancing of the Board effectiveness. Teo Kio Choon @ Chang Chiaw Choon for re-election at the forthcoming AGM. participation and contribution of individual Directors at Board and Committee meetings to evaluate each Director’s performance.

the RC reviews subsequent increments. The service contract may be terminated by either the Company or Executive Directors giving to the other at least 6 months prior written notice. attendance fees and additional fees for serving on any of the Board Committees. The RC reviews what compensation commitments the executive directors’ service contracts would entail in event of early termination and aims to be fair and avoid rewarding inadequate performance. Independent Non-Executive Directors do not enter into any Service Contracts with the Company. the Company Secretary is responsible for compliance with all other SGX-ST rules and regulations. The RC is of the view that the Directors’ service contracts are not excessively long or with onerous removal clauses. In addition. to review Management’s proposal of the fees for Independent Non-Executive Directors.REPORT ON CORPORATE GOVERNANCE The Company Secretary attends Board meetings and is responsible for ensuring that Board procedures are followed. which are applicable to the Company. together with the RC. Directors’ fees are set in accordance with a remuneration framework comprising basic fees. to determine and recommend to the Board specific remuneration packages for each Executive Director. Independent NonExecutive Directors do not receive any remuneration from the Company. Thereafter. bonuses and allowances where these payments are discretionary. (Chairman) Annual Report 2011 15 . The cost of such professional advice will be borne by the Company. and to ensure that the remuneration policies and systems of the Group supports the Group’s objectives and strategies. REMUNERATION MATTERS Principle 7 Principle 8 Principle 9 Procedures for Developing Remuneration Policies Level and Mix of Remuneration Disclosure on Remuneration The Remuneration Committee (“RC”) comprises the following members: Dr. Chue Wai Tat The principal responsibilities of the RC are: to review and recommend to the Board an appropriate and competitive framework of remuneration for the Board and key executives of the Group to attract. No Director or member of the RC is involved in deciding his or her own remuneration. decides on the specific remuneration package for an Executive Director upon recruitment. Directors’ fees are approved by the shareholders of the Company as a lump sum payment at the Annual General Meeting of the Company. Together with the management staff of the Company. taking into account factors including remuneration packages of Executive Directors in comparable industries as well as the performance of the Company and that of the Executive Directors. The appointment and the removal of the Company Secretary are subject to the Board’s approval. Save for the receipt of directors’ fees and participation in the Company’s Employees Share Option Scheme. The Company Secretary ensures that the Company complies with the requirements of the Companies Act Cap. The NC. 50. Wang Kai Yuen Mr. the Board takes independent professional advice as and when necessary to enable it to discharge its duty and responsibilities effectively. Teo Kio Choon @ Chang Chiaw Choon Mr. The RC has adopted written terms of reference. retain and motivate employees of the required caliber to manage the Company successfully. The remuneration package adopted for the Executive Directors is as per the service contract entered into between the respective Executive Director and the Company.

000 : Lim Kee Liew @ Victor Lim Leong Lai Heng* Below S$250. Wang Kai Yuen Teo Kio Choon @ Chang Chiaw Choon Tan Siew Bin.000 : Chan Sze Ming. Winchester* Han Yee Yen 1 66 96 95 94 90 – – – – 2 – – 2 – 34 4 5 6 8 – – – 1 100 100 100 100 100 100 100 100 100 Lim Kee Hing Lim See Wai Vincent Koh 2 3 Ng Chee Wee Ng Cher Lek Yang Lei 100 100 98 99 Ang Chee Hao 1 2 3 resigned as Financial Controller on 8 October 2010 resigned as Assistant General Manager on 30 June 2011 appointed as Group Financial Controller on 30 August 2010 16 Asian Micro Holdings Limited . The following table shows the breakdown of the fees and remuneration of Directors (in percentage terms) for the year ended 30 June 2011: Other Benefits including benefits in kind % Remuneration band and name of directors Fee % Salary % Total % S$250. William1 Dr. Ronnie Ng Chee Wee 1 2 3 – – 95 93 5 7 100 100 – 100 100 100 – 89 – – – 95 11 – – – 5 100 100 100 100 100 2 3 resigned on 1 June 2011 resigned on 25 May 2011 appointed on 6 May 2011 Winchester Lin was the alternative director to Ms Leong during the financial year and his remuneration is disclosed below * The annual remuneration for key executives (in percentage terms) during the year is as follows: Other Benefits % Key executives Salary % Bonus % Total % Below S$250. no employees of the company and its subsidiaries are related to Directors or the Chief Executive Officer whose remuneration exceeded S$150.000 during the financial year ended 30 June 2011.REPORT ON CORPORATE GOVERNANCE Other than Ms.000 to below S$500. Leong Lai Heng.000 : Lin Xianglong.

to review legal and regulatory matters that may have a material impact on the financial statements and reports action and minutes of the AC to the Board of Directors with such recommendations as the AC considers appropriate. to review with Management the announcement of the interim and full-year results of the Group and its financial statements. Teo Kio Choon @ Chang Chiaw Choon Mr.REPORT ON CORPORATE GOVERNANCE ACCOUNTABILITY AND AUDIT Principle 10 Accountability In presenting the annual financial statements and half-yearly announcements to shareholders. Management currently provides all members of the Board with appropriately detailed management accounts of the Group’s performance. to review the adequacy of the Group’s system of internal controls. Wang Kai Yuen Mr. to review any related significant findings and recommendations of the External Auditors. and has full discretion to invite members of the management to attend its meetings. it is the aim of the Board to provide the shareholders with a detailed analysis. The AC has met with the external auditors annually. to review with Management on significant risks or exposures that exist and assesses the steps that Management has taken to minimize such risks to the Group. The AC has full access to and receives co-operation from the Management. all of whom are Independent Non-Executive Directors. position and prospects on a half-yearly and such management accounts are provided to executive directors on a monthly basis. Principle 11 Principle 12 Principle 13 Audit Committee Internal Control Internal Audit The Audit Committee (“AC”) comprises the following members. The principal functions of the AC are: to recommend to the Board of Directors the External Auditors to be nominated. appropriately qualified to discharge their responsibilities: Dr. explanation and assessment of the Group’s financial position and prospects. in confidence. results and effectiveness of the External Auditors. raise concerns about possible improprieties in matters of financial reporting or other matters. without the presence of the Company’s management. Reasonable resources have been given to enable it to discharge its functions. and to review arrangements by which staff of the Company may. Annual Report 2011 17 . Minutes of the AC meetings are circulated to the Board for its information. together with Management’s responses thereto. financial and management reporting systems. The AC has conducted an annual review of all non-audit services by the external auditors to satisfy itself that the nature and extent of such services will not prejudice the independence and objectivity of the external auditors and has recommended to the Board the re-appointment of Messrs Ernst & Young LLP as the auditors of the Company. audit plans. to review interested party transactions as may be required by the regulatory authorities or the provisions of the Companies Act. The AC had adopted written terms of reference. to review the scope. Chue Wai Tat (Chairman) The AC met twice (2) in FY2011.

To further strengthen the internal control system. The Group issues circulars to its directors. DEALINGS IN SECURITIES The Company has a clear policy on the trading of its shares by directors. The Securities Transactions Code provides guidance to the directors and executives of the Group with regard to dealing in the Company’s shares. The Company does not practice selective disclosure. The external auditors are also present to assist the Directors in addressing any relevant queries from shareholders. where appropriate. COMMUNICATION WITH SHAREHOLDERS Principle 14 Principle 15 Communication with Shareholders Greater Shareholder Participation In line with the continuous disclosure obligations of the Company and pursuant to the Listing Manual of the SGXST and the Companies Act. shareholders shall be informed of all major developments that impact the Group. The Chairmen of the Audit. the Management reviews the Company’s business and operational activities regularly to identify areas of significant business risks as well as appropriate measures to control and mitigate these risks. The Notice of the AGM is also advertised in a daily newspaper and made available on the SGX-ST website. The Articles of Association of the Company allows shareholders to appoint one or two proxies to attend and vote in their stead at the AGM. analysts. The Management reviews all significant control policies and procedures and highlights all significant matters to the Board and the Audit Committee. The Company’s senior management has made regular visits to the operating units within the Group. However. Each item of special business included in the Notice of meetings is accompanied. All material and price sensitive information as well as information on the Company’s new initiatives are publicly released via SGXNET. Chapter 50. RISK MANAGEMENT The Company does not have a Risk Management Committee. the Management will consider the establishment of an independent internal audit function either on an in-house or outsourced basis. notwithstanding the window periods for dealing in the shares. fund managers and the press. investors. In addition. Separate resolutions are proposed for substantially separate issues at meetings.REPORT ON CORPORATE GOVERNANCE The Board recognizes its responsibility for the Group’s system of internal controls and the need to review its adequacy and integrity regularly in order to safeguard the Group’s assets and therefore shareholders’ investments in the Group. Remuneration and Nominating Committees are normally available at the AGM to answer questions relating to the work of these committees. It emphasizes that the law on insider trading is applicable at all times. The Securities Transactions Code also enables the Company to monitor such share transactions by requiring employees to report to the Company whenever they deal in the Company’s shares. The Company has adopted its own internal Code of Best Practices on Securities Transactions (“the Securities Transactions Code”). the Company also responds to enquiries from shareholders. shareholders are given the opportunity to air their views and ask questions regarding the Company and the Group. executives and employees within the Group. executives and employees informing them that they must not trade in the listed securities of the Company one month before the announcement of the Group’s half-yearly and full year results and ending on the date of the announcement of such results. All shareholders of the Company receive a copy of the Annual Report and Notice of Annual General Meeting (“AGM”) annually. At the AGM. in a timely manner. 18 Asian Micro Holdings Limited . by an explanation for the proposed resolution. The Company Secretary records minutes of every AGM and the minutes will be made available to the shareholders upon their request. A management structure with clearly defined lines of responsibility that promotes effective internal control is in place.

000 $126. The Group has complied with its Best Practices on Securities Transactions. and on the adequacy of internal controls within the Group. TREASURY SHARES There are no treasury shares held by the Company. there are no other material contracts of the Company or its subsidiaries involving the interest of the chief executive officer or any director or controlling shareholders which are either still subsisting at the end of the financial year or entered into since the end of the previous financial year. Ltd NON-AUDIT FEES AND NON-SPONSOR FEES The Company is currently under the SGX-ST Catalist sponsor-supervised regime. as its continuing sponsor with effect from 1 November 2010. The Board is satisfied with the Group’s commitment in compliance with the Code. was the continuing sponsor of the Company up to 31 October 2010. MATERIAL CONTRACTS Save for the service contracts between the Executive Directors and the Company.. KW Capital Pte. and the interested person transactions described below. Annual Report 2011 19 . for the year ended 30 June 2011. Ltd. INTERESTED PERSON TRANSACTIONS The Company has established procedures to ensure that all transactions with interested persons are reported on a timely manner to the Audit Committee and that such transactions are carried out on normal commercial terms and will not be prejudicial to the interests of the Company and its minority shareholders.000 and transactions conducted under shareholders’ mandate pursuant to Rule 920) $208. The Company appoints Asian Corporate Advisors Pte. There were no non-audit fees paid to the external auditors for the financial year concerned. The Continuing Sponsor of the Company is Asian Corporate Advisors Pte.REPORT ON CORPORATE GOVERNANCE The directors are required to notify the Company of any dealings in the Company’s securities (during the open window period) within two (2) business days of the transactions. The aggregate value of the interested person transactions entered into FY2011 is as follows: Aggregate value of all interested person transactions during the financial year under review (excluding transaction less than S$100. there was no non-sponsor fee paid by the Company to the sponsor.900 Name of interested person Ultraline Technology (S) Pte Ltd Asian Micro Industries (Thailand) Co. Ltd. In compliance with Rule 1204(20) of the Catalist Rule. Ltd.

526.000 117.808.000 104.304 87.312. Wang Kai Yuen Teo Kio Choon @ Chang Chiaw Choon At 30 June 2011 At 21 July 2011 At 1 July 2010 Deemed interest At 30 June 2011 At 21 July 2011 46.304 159. who held office at the end of the financial year.760 100.151. the “Group”) and the balance sheet and statement of changes in equity of the Company for the financial year ended 30 June 2011. Wang Kai Yuen Lim Kee Liew @ Victor Lim Lin Xianglong Winchester Ng Chee Wee Teo Kio Choon @ Chang Chiaw Choon Chue Wai Tat (appointed on 24 August 2011) (appointed on 6 May 2011) (appointed on 6 July 2011) Arrangements to enable directors to acquire shares and debentures Except for the Asian Micro Holdings Limited Employees’ Share Option Plan as described below. as stated below: Direct interest At 1 July 2010 or date of appointment The Company Asian Micro Holdings Limited (Ordinary shares) Lim Kee Liew @ Victor Lim Leong Lai Heng * Ng Chee Wee Dr.218.526.761 145.379.217 104. neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose object is to enable the directors of the Company to acquire benefits by means of the acquisition of shares or debentures of the Company or any other body corporate.312. had.526.579.218.304 159.000 1.761 – – – – – – 600. Cap.217 118.217 76. 50.000 1.000 600.000 – – – 20 Asian Micro Holdings Limited .646.741. Directors The directors of the Company in office at the date of this report are: Dr.760 100.741.000 1.761 145.000 600.760 118.DIRECTORS’ REPORT The directors present their report to the members together with the audited consolidated financial statements of Asian Micro Holdings Limited (the “Company”) and its subsidiaries (collectively. Directors’ interests in shares and debentures The following directors.000 100. according to the register of directors’ shareholdings required to be kept under section 164 of the Companies Act. an interest in shares of the Company and related corporations (other than wholly-owned subsidiaries).646.

Directors’ contractual benefits Except as disclosed in the financial statements. 50.000.015 0.000 1.010 0. Cap.000 2.000 900.000 – 2.000 – 574.090 0.015 0.000 2.000.500.070 0.000 1.500. or with a firm of which the director is a member. Lim Kee Liew @ Victor Lim and Leong Lai Heng are deemed to have an interest in shares of the subsidiaries of the Company.000 – 574.015 0.010 November 2011 – October 2020 November 2011 – October 2020 November 2011 – October 2020 July 2012 – October 2020 August 2004 – September October 2004 – September December 2010 – September November 2011 – October July 2012 – October October 2004 – September December 2010 – September November 2011 – October July 2012 – October 2011 2011 2011 2020 2020 2011 2011 2020 2020 Dr.000 1.010 0.030 0.000 1.000 500.000 – – 2. except for significant transactions with related parties as disclosed in Note 27 to the accompanying financial statements.000. no director who held office at the end of the financial year had interests in shares.000 1.500.015 0.000 900.000 4. no director of the Company 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.180.500.000 – – 1.000 574. share options.000 1.000.500.500.000 2.180. Except as disclosed in this report. Wang Kai Yuen Teo Kio Choon @ Chang Chiaw Choon * Resigned as director of the Company on 24 August 2011.000 2.500. By virtue of Section 7 of the Singapore Companies Act. or with a company in which the director has a substantial financial interest.000.090 0.000.DIRECTORS’ REPORT Directors’ interests in shares and debentures (cont’d) Direct interest At At beginning end of the of the year year or date of appointment The Company Asian Micro Holdings Limited (Options to subscribe for ordinary shares) Lim Kee Liew @ Victor Lim Leong Lai Heng * Ng Chee Wee At 21 July 2011 Exercise price $ Exercise period – – 1.500. since the end of the previous financial year. warrants or debentures of the Company or of related corporations either at the beginning or end of the financial year or 21 July 2011.015 0.000 – 1.000 1.030 0.000 4.000 0.000 1.180.000 1.000.500.000 1.500.500.000 900. Annual Report 2011 21 .500.000 1.

Details of the balance of the options to subscribe for ordinary shares of the Company pursuant to the ESOS 2001 as at 30 June 2011 are as follows: Exercise price (S$) 0.090 0.050 0.646. Members who administered the ESOS 2001 during the financial year are: Lim Kee Liew @ Victor Lim Leong Lai Heng Teo Kio Choon @ Chang Chiaw Choon 3. Asian Micro Employees’ Share Option Scheme (the “ESOS 2001”) was approved by the shareholders at an extraordinary general meeting held on 28 September 2001.105 0. Grant date October 2001 November 2001 May 2002 June 2002 August 2003 August 2003 October 2003 October 2005 May 2007 June 2007 June 2007 July 2008 September 2008 December 2009 Expiry date September 2011 September 2011 September 2011 September 2011 September 2011 September 2011 September 2011 September 2011 September 2011 September 2011 September 2011 September 2011 September 2011 September 2011 Number of options 800.180 0.000 14.070 0. 4.050 0.000 230. No option has been granted during the financial year.000 675.030 2.DIRECTORS’ REPORT Share options Asian Micro Employees’ Share Option Scheme 1.000 7.090 0.100 0.000 525.000 200.090 0. The ESOS 2001 was subsequently terminated by shareholders at an extraordinary general meeting held on 28 October 2010.000 56.050 0.000 152.000 21.000 22 Asian Micro Holdings Limited .000 550.000 68.060 0.065 0.000 50.960.165 0.000 2.507.000 574.

000) Aggregate options exercised since commencement of ESOS 2001 (1. No unissued shares. Details of the options to subscribe for ordinary shares of the Company granted to directors of the Company pursuant to the ESOS 2001 are as follows: Aggregate options granted since commencement of ESOS 2001 6.61% 6.000 Apart from the following who have in aggregate received 5% or more of the total number of options available under the ESOS 2001.380. Options granted during the financial year – Aggregate options outstanding as at end of financial year 3. Annual Report 2011 23 .17% 6.254.300. none of the other executive directors and employees of the Group who participated in the ESOS 2001 has received 5% or more of the total number of options available under the ESOS 2001: Total options granted Dr. by virtue of the options. in any share issue of any other corporation.126. no options have been granted to other directors. are under option as at the date of this report.000 3.000 – – – 4.380. Wang Kai Yuen Teo Kio Choon @ Chang Chiaw Choon Chan Sze Ming * * Resigned as director of the Company on 1 June 2011.000) – (100.000) Name of directors Dr.000 3.000 916. Total % of options under the ESOS 2001 9.800.18% 5.000 (200.000) 2.700.000 4.000 Aggregate options cancelled since commencement of ESOS 2001 (2. controlling shareholders of the Company or their associates.DIRECTORS’ REPORT Share options (cont’d) 5.900. The options do not entitle the holder to participate.000.000) (16.300.000) – (1.000 3.900.000 Except for the above. other than those referred to above.000 900. Wang Kai Yuen Teo Kio Choon @ Chang Chiaw Choon Ronnie Tan Siew Bin Chan Sze Ming 6.400. No options had been exercised from the financial year end to the date of this report. None of the options were granted at a discount during the financial year.

000 2.000 4. Asian Micro Employees’ Share Option Scheme 2010 (the “ESOS 2010”) was approved by shareholders at an extraordinary general meeting held on 28 October 2010.000.000 1.000 2.500.000 share options under the ESOS 2010.000 – – – – – – – – 2.500. Members who administered the ESOS 2010 during the financial year are: Lim Kee Liew @ Victor Lim Leong Lai Heng Teo Kio Choon @ Chang Chiaw Choon 3.000.000.950.000. These options expire on 28 October 2020 and are exercisable if the employee remains in service. Grant date November 2010 5.000.000 – – 2.000 2.450.000.000 2.000 2. 4.000. During the financial year ended 30 June 2011.000 1.000.000.000 2.000.000 2.015 2.000.500.000.500.000 2. Wang Kai Yuen Teo Kio Choon @ Chang Chiaw Choon Name of Associates of controlling shareholders Lim Kee Hing Lin Xianglong Winchester 2. Details of the balance of the options to subscribe for ordinary shares of the Company pursuant to the ESOS 2010 as at 30 June 2011 are as follows: Exercise price (S$) 0. These options are only exercisable after the first anniversary of the Date of Grant of options. Expiry date October 2020 Number of options 19. the Company granted 25.000 – – – – 2.000 2.DIRECTORS’ REPORT Asian Micro Employees’ Share Option Scheme 2010 1.000 1.500.000 2.000 24 Asian Micro Holdings Limited .000 Details of the options to subscribe for ordinary shares of the Company granted to directors of the Company pursuant to the ESOS 2010 are as follows: Aggregate options granted since commencement of ESOS 2010 Aggregate options cancelled since commencement of ESOS 2010 Aggregate options exercised since commencement of ESOS 2010 Options granted during the financial year Name of Directors Lim Kee Liew @ Victor Lim Leong Lai Heng Ng Chee Wee Dr.000.000.500.000 4.000 Aggregate options outstanding as at end of financial year 2.000.000 4.

On behalf of the Board of directors. The functions performed are detailed in the Report on Corporate Governance. Lim Kee Liew @ Victor Lim Director Lin Xianglong Winchester Director Singapore 7 October 2011 Annual Report 2011 25 . other than those referred to above. none of the directors and employees of the Group who participated in the ESOS 2010 has received 5% or more of the total number of options available under the ESOS 2010. No options had been exercised from the financial year end to the date of this report. are under option as at the date of this report. 50. None of the options were granted at a discount during the financial year. Audit committee The audit committee carried out its functions in accordance with Section 201B(5) of the Singapore Companies Act.DIRECTORS’ REPORT Share options (cont’d) 6. by virtue of the options. Auditors Ernst & Young LLP have expressed their willingness to accept re-appointment as auditors. No unissued shares. in any share issue of any other corporation. The options do not entitle the holder to participate. Cap. Save as disclosed.

in the opinion of the directors. and at the date of this statement. changes in equity and cash flows of the Group and the changes in equity of the Company for the year ended on that date. Lim Kee Liew @ Victor Lim Director Lin Xianglong Winchester Director Singapore 7 October 2011 26 Asian Micro Holdings Limited . (i) the accompanying balance sheets. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due.1 to the financial statements. (ii) On behalf of the Board of directors. Lim Kee Liew @ Victor Lim and Lin Xianglong Winchester. consolidated statement of comprehensive income.STATEMENT BY DIRECTORS We. on the assumption that. being two of the directors of Asian Micro Holdings Limited. the Group and the Company will generate adequate cash flows from operations and continue to receive continuing financial support from two major shareholders of the Company. as stated in Note 2. statements of changes in equity and consolidated cash flow statement together with notes thereto 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 30 June 2011 and the results of the business. do hereby state that.

Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.870 respectively. the auditor considers internal control relevant to the entity’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. as well as evaluating the overall presentation of the financial statements.060 and $3. including the assessment of the risks of material misstatement of the financial statements. Emphasis of matter We draw attention to Note 2. As discussed more fully in Note 2. and a summary of significant accounting policies and other explanatory information. Management’s 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. but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. the consolidated financial statements of the Group and the balance sheet and statement of changes in equity of the Company are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Company as at 30 June 2011 and the results. Annual Report 2011 27 . 50 (the Act) and Singapore Financial Reporting Standards. The Group and the Company incurred a net loss after taxation of $4. these financial statements have been prepared on a going concern basis on the assumption that the Group and the Company will generate adequate cash flows from operations and continue to receive continuing financial support from two major shareholders of the Company (one of whom is also a director of the Company). An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management. the statements of changes in equity of the Group and the Company and the consolidated statement of comprehensive income and consolidated cash flow statement of the Group for the year then ended.112. whether due to fraud or error.1 to the financial statements. Our opinion is not qualified in respect of this matter. respectively.429. The procedures selected depend on the auditor’s judgment. 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. We conducted our audit in accordance with Singapore Standards on Auditing. These factors indicate the existence of an uncertainty which may cast significant doubt about the Group and the Company’s ability to continue as going concerns. for the financial year ended 30 June 2011 and as at that date. which comprise the balance sheets of the Group and the Company as at 30 June 2011. Cap.381 and $635. Opinion In our opinion. 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. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.723.INDEPENDENT AUDITORS’ REPORT For the financial year ended 30 June 2011 To the Members of Asian Micro Holdings Limited Report on the Financial Statements We have audited the accompanying financial statements of Asian Micro Holdings Limited (the “Company”) and its subsidiaries (collectively “the Group”) set out on pages 29 to 92. the Company’s current and total liabilities exceeded its current and total assets by $2. changes in equity and cash flows of the Group and the changes in equity of the Company for the year ended on that date.1 to the financial statements. In making those risk assessments.773.

Ernst & Young LLP Public Accountants and Certified Public Accountants Singapore 7 October 2011 28 Asian Micro Holdings Limited . 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.INDEPENDENT AUDITORS’ REPORT For the financial year ended 30 June 2011 Report on other legal and regulatory requirements In our opinion.

151 8.334 – 108.136 376.539. 2011 Group Note 2011 $ 2010 $ 2011 $ Company 2010 $ Non-current assets Property.175.502 – 2.815 581 – 105.335 13.855 – 16.625 104.429 149.097.548 15.451 – – 7.777.028.151 – 4.033 271.669 1.338) 5.000 468.506 1.740 585 – 16.019 1.277 – – 1. plant and equipment Investments in subsidiaries Investments in associate Other investments Current assets Inventories Trade and other receivables Prepayments Due from subsidiaries (non-trade) Due from related parties (non-trade) Fixed deposits Cash and bank balances 6 7 1.129.001 – – – 784.113 6.336.431 – – – – – 6.085 – 76.059.472 51.789 2.333 427.598.497.050.047.716.068 148.176.828 455.459.870) 22.229 Net current assets/(liabilities) Non-current liabilities Obligations under finance lease Deferred tax liabilities Loan from related party (non-trade) 12 23 8 168.314 460.BALANCE SHEETS As at 30 June.602.312 – 5.319.317 2.207 555.636.077 – – 8 8 9 9 Annual Report 2011 29 .166.381) 200.055 1.152.925 581 – 23.899 – – – 1.972 1.184 – 2.112.400 (2.805 1.725 (635.555 – 1.207 777.286 1.815 7.913.515 6.274.380.515 – – – 33.036 4.561 25.360.666 955 47.161 1.655 (705.353 129.550 631.884 17.159.933 Total assets Current liabilities Trade and other payables Accrued expenses Loan from directors (non-trade) Provision Due to subsidiaries (non-trade) Due to related parties (non-trade) Bills payable to bank Obligations under finance lease Provision for taxation 10 13 8 14 8 8 11 12 1.420.706 916.636 8.393 585 300.325 2.603 2.716 522.833 72.797 – 161.647 920.368.704 2.396 6.807 4.832 2.371 353.978 Total liabilities Net assets/(liabilities) 4.424 245.654 400.111.229 3 4 5(a) 5(b) 1.031 – – 37.488 582.835 2.728.228.

068 – 1.189 (39.625 5.368.114.568 2.173.855 37.987 – – 96.319.BALANCE SHEETS As at 30 June.166.151 38.870) – (635. 2011 Group Note 2011 $ 2010 $ 2011 $ Company 2010 $ Equity attributable to owners of the Company Share capital Share option reserve Foreign currency translation reserve Premium paid on acquisition of non-controlling interests Other reserve Accumulated losses Non-controlling interests Total equity Total equity and liabilities 15 16 38.189 (36.189 (34.068 2.996.173.274.189 (39.196.987 1.524.974) (635.229 The accompanying accounting policies and explanatory notes form an integral part of the financial statements.993) 1.162) 96.928 212.928 389.870) 1.980 169.944 – – 96.336) 1.832 37.795.673.417 (638.944 147.487.548 8.276) 777.928 389.539.673.728.928 212. 30 Asian Micro Holdings Limited .296) 1.093 17 – 96.368.901 (419.995.

758) (2.621) (3.687) 3.CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 30 June 2011 Note 2011 $ 2010 $ (Reclassified) 20.577 (400.037) (70.011.031) (3.970) (3.429.126) (3.896.94) (0.275) 1.341) 3.060) 4 1.658) Total comprehensive income attributable to: Owners of the parent Non-controlling interests (2.857.640.320.463) (2.575.84) (3.590 21.658) Revenue Cost of sales Gross profit Other operating income Distribution and selling expenses Administrative expenses Other operating expenses Loss from operations Financial expenses Financial income Share of results of associated companies Loss before taxation Taxation Net loss for the year Other comprehensive income Foreign currency translation Foreign currency reserve realised on disposal of subsidiaries Other comprehensive income/(loss) for the year.068 (6.170) (518.470) (4.108.885) (4.302 (3. Annual Report 2011 31 .576.429.761 (445.590) (532.625 (18.703.023.970.665) 1.601.601.657 (3.920) (4.597) (125.081.170) (2.94) (0.939) (80.970) The accompanying accounting policies and explanatory notes form an integral part of the financial statements.758) Loss per share attributable to owners of the parent (cents per share) Basic Diluted 24 24 (0.521.84) (0.103 (4.108.258.106) (1.844) (3.458) (58.200) (3.131 836.290 – (4.163) 211.112) (67.494) 1.060) (3.081.403 19(a) 19(b) 21 21 20 23 459.719.515.519.910.027.142) (520.312) (3.604.720.666 (267.914) (588.984. net of tax Total comprehensive loss for the year Loss attributable to: Owners of the parent Non-controlling interests 18 8.

173.215 (32.995.601.735) – – 520.166.812 1.023.599 (58.458) – (498.32 Attributable to owners of the Parent Equity attributable to owners of the Parent $ Share capital $ Accumulated losses $ Other reserve total $ Noncontrolling interests $ Foreign currency translation reserve $ Employee share option reserve $ Premium paid on acquisition of noncontrolling interests $ 4.023.099 (152.812 Closing balance at 30 June 2010 2.580 249.200) (21.653.970) Contributions by and distributions to owners Grant of equity-settled share options to employees (Note 16) 110.481) (3.548 .996.081.099 Expiry of employee share options (Note 16) – Capitalisation of payables to certain directors and a trade creditor 520.336) 520.189 – – 147.713 152.735 (34. net of tax (520.031) 2010 Group Total equity $ For the year ended 30 June 2011 STATEMENTS OF CHANGES IN EQUITY Asian Micro Holdings Limited 110.521.613) 96.888.481) – – – – (498.458) (498.713 Total transactions with owners in their capacity as owners 630.124.107 (3.980 37.898 (638.735 – – – – – – – – 110.312) Total comprehensive loss for the year (3.928 520.162) – (42.023.713 – – – 96.099 – – 152.944 – – 169.636) 212.939) – (3.831) (80.458) – – – – – – 36.417 – – (638.189 645.658) Other comprehensive loss for the year.481) – – (3.568 Opening balance at 1 July 2009 5.137.162) 255.713 630.706 Net loss for the year (3.

000 – – – 96.896.500.914) – (4.470) (56.108.719.000 42.519.374) (588.376.996. net of tax 1.043 389.835 – – – – 1.896.524.000 1.162) 212.166.548 169.835 (42.376.792 1.844) Net loss for the year (4.196.995.719.625 33 .429.752) – 1.487.162 – (3.500.500.189 147.Attributable to owners of the Parent 2011 Group Share capital $ Accumulated losses $ Total equity $ Equity attributable to owners of the Parent $ Other reserve total $ Noncontrolling interests $ Foreign currency translation reserve $ Employee share option reserve $ Premium paid on acquisition of noncontrolling interests $ Opening balance at 1 July 2010 1.173.417 (638.676 (2.944 2.568 (532.673.320.676 638.987 – – – – (419.792 – – – – 219.376.928 (34.901 38.980 (3.534.835 STATEMENTS OF CHANGES IN EQUITY For the year ended 30 June 2011 Closing balance at 30 June 2011 Annual Report 2011 777.835 1.000 Total transactions with owners in their capacity as owners 1.060) Other comprehensive loss for the year.162) – 1.590) 1.336) 96.162 – (638.758) Contributions by and distributions to owners Grant of equity-settled share options to employees (Note 16) 219.835 – 1.093 – – – – – 219.792) – 177.676 638.276) Expiry of employee share options (Note 16) – Capitalisation of payables to certain directors 1.189 – 42.590) – – – – – – 37.302 Total comprehensive loss for the year (3.928 (39.500.296) 1.

723.081.835 (635.114.835 (42.773) 219.601 (4.993) – – 96.870) The accompanying accounting policies and explanatory notes form an integral part of the financial statements.500.000 38.189 212.000 1.792 – 42.812 1.713 630.636) 212.099 (152.043 389.987 1.928 – 152.189 – Share option reserve $ 255.500.368.735 (36.974) 96.928 – – – 1.944 – 219.723.928 (36.792) – 177.345) Other reserve $ 96.368.215 – Accumulated losses $ (32.713 520.186.345) Balance as at 1 July 2009 Total comprehensive loss for the year Contribution by and distributions to owners Grant of equity-settled share options to employees (Note 16) Expiry of employee share options (Note 16) Capitalisation of payables to certain directors and a trade creditor Total transactions with owners in the capacity as owners Balance as at 30 June 2010 – – – 152.773) – 42.818.673.173.500.580 – Total equity $ 4.735) 110.099 – 520.795.189 – (42. 34 Asian Micro Holdings Limited .068 (3.993) (3.189 – – – – – 96.713 37.719.735 – – 110.000 1.383) (4.944 520.068 Balance as at 1 July 2010 Total comprehensive loss for the year Grant of equity-settled share options to employees (Note 16) Expiry of employee share options (Note 16) Capitalisation of payables to certain directors Total transactions with owners in the capacity as owners Balance as at 30 June 2011 37.STATEMENTS OF CHANGES IN EQUITY For the year ended 30 June 2011 Company Share capital $ 36.792 (39.114.081.173.653.835 – 1.

124) 3.290 (38.290) – 219.368.606) 82.657) 110.588.011.797 151.806) – 79.591) (10.472 1.050) (51.124 (3.368 (13.536.879 550.663 51.906 (79. plant and equipment written off Gain on disposal of property.964 Annual Report 2011 35 . plant and equipment Property.858 96.214) 499.835 248.797) 47.000) 166.208) 664.393 (91.153 (2.662 52.836) – (972.584 (113.397 (6.198 1.CONSOLIDATED CASH FLOW STATEMENT For the year ended 30 June 2011 Note 2011 $ 2010 $ Cash flow from operating activities Loss before taxation Adjustments: Allowance for doubtful debts (trade) Allowance for doubtful debts (non-trade) Write-off of doubtful debts Allowance for stocks obsolescence Write-back of allowance for doubtful debts Write-back of allowance for stock obsolescence (Write-back)/write-off of stocks Gain on disposal of subsidiaries Depreciation of property.415 128.480) 695.287 (230.756) (3.037) 187.066) – (163.590) (21.505) 98.797) (460.899 – 817.163) 12.207) (8.520) – (889.127 865.453 175.253 543 714.099 (1.704) 3.640.249.506) (47.084) 528.266) – 123. plant and equipment Waiver of payables Write-back of provision for warranty Interest expense Interest income Share of results of associated companies Share-based payment expenses Operating loss before working capital changes Decrease in stocks Decrease/(increase) in trade and other receivables Decrease/(increase) in prepayments (Increase)/decrease in amount due from /(to) related parties Decrease in amount due from affiliated companies Increase in trade and other payables Increase in accrued expenses (Decrease)/Increase in provision (Decrease)/increase in bills payable to bank Increase in amount due to directors (non-trade) Cash (used in)/generated from operations Interest paid Interest income received Income taxes paid Income taxes refunded Net cash (used in)/generated from operating activities (4.128 201.671.037 (262.537 – (51.349 580.333 15.704 (3. plant and equipment Impairment loss on property.506) 1.494 (221.639 3.835 (3.819 680.590 (141.384 12.

241) (763) 169.013.190) The accompanying accounting policies and explanatory notes form an integral part of the financial statements.376) (844.807 – – (240.050.000 155.949 (1.669) (5.637) 1.270) (58.050.250) (9. plant and equipment Net cash used in investing activities Cash flows from financing activities Loan from related party Drawdown of finance lease obligations Repayment of finance lease obligations Fixed deposits pledged Net cash generated from/(used in) financing activities Net (decrease)/increase in cash and cash equivalents Effect of exchange rate changes in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 9 300.948) 336.113 271. 36 Asian Micro Holdings Limited .832) 442. plant and equipment Purchase of property.942 812 606.CONSOLIDATED CASH FLOW STATEMENT For the year ended 30 June 2011 Note 2011 $ 2010 $ Cash flow from investing activities Net cash flow from disposal of subsidiaries Proceeds from disposal of property.837) 258.328 (772.290) (51.113 4 3 (13.977 (381.455 (145.582) (249.359 1.

345). adoption of these standards and interpretations did not have any effect on the financial performance or position of the Group.081. revisions to accounting policies. Details of these subsidiaries are disclosed in Note 4 to the financial statements. the Group and the Company may have to reclassify non-current assets and liabilities as current assets and liabilities. The principal activity of the Company is that of investment holding.723. 2.060 (2010: $3. and (ii) allow the Group to defer payments of rental payable to companies controlled by them until such time as the Group’s cash flow enables such payment. they have given a commitment to (i) not to recall for payment of salaries due to them as at 30 June 2011 and deferring payment of future salaries. Except for the revised FRS 103 and the amendments to FRS27.1 Fundamental accounting concept The Group and the Company incurred a net loss after taxation of $4. in some cases. The financial statements have been prepared on the historical cost basis. manufacturing of clean room grade polythene packaging materials and trading in clean room supplies.658) and $3. There have been no significant changes in the nature of these activities during the financial year.381 (2010: $705.773 (2010: $4. The registered office and principal place of business of Asian Micro Holdings Limited is located at 1 Tech Park Crescent. the Group has adopted all the new and revised standards and Interpretations of FRS (INT FRS) that are effective for annual periods beginning on or after 1 January 2010. respectively for the financial year ended 30 June 2011 and as at that date.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 1. Two of the Company’s major shareholders (one of whom is also a director of the Company) have agreed to provide continuing financial support to the Group and the Company to enable the Group and the Company to meet their obligations as and when the need arises. Corporate information Asian Micro Holdings Limited is a limited liability company incorporated in Singapore and is listed on the Stock Exchange of Singapore Catalist Sponsor-Supervised regime (“Catalist”). These factors indicate the existence of an uncertainty which may affect the validity of the going concern assumption on which the accompanying financial statements are prepared. 2.870 respectively.112. They did however give rise to additional disclosures.2 Changes in accounting policies The accounting policies adopted are consistent with those of the previous financial year except in the current financial year. Summary of significant accounting policies The consolidated financial statements of the Group and the balance sheet and statement of changes in equity of the Company have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”). Singapore 638131.429. 2. The principal activities of the subsidiaries are those of natural gas vehicles conversion. The Directors are of the view that it is appropriate to prepare these financial statements on a going concern basis on the assumption that the Group and the Company will generate adequate cash flows from operations and continue to receive continuing financial support from the two major shareholders. tray-recycling services. the Company’s current and total liabilities exceeded current and total assets by $2. The financial statements are presented in Singapore Dollars (SGD or $). In addition. including.081. If the Group and the Company are unable to continue in operational existence for the foreseeable future. No such adjustments have been made to these financial statements. Tuas Tech Park. In addition.338) and $635. the Group and the Company may be unable to discharge their liabilities in the normal course of business and adjustments may 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 from the amounts at which they are currently recorded in the balance sheets. Annual Report 2011 37 .

Consideration contingent on future events are recognised at fair value on the acquisition date and any changes in the amount of consideration to be paid will no longer be adjusted against goodwill but recognised in profit or loss. the Group adopted both revised standards at the same time in accordance with their transitional provisions. nor will it give rise to a gain or loss recognised in profit or loss. and this impacts the amount of goodwill recognised. FRS 27 Consolidated and Separate Financial Statements (revised) Changes in significant accounting policies resulting from the adoption of the revised FRS 27 include: – A change in the ownership interest of a subsidiary that does not result in a loss of control is accounted for as an equity transaction. The changes will affect future transactions with non-controlling interests. – – According to its transitional provisions. and When a business is acquired in stages. As of 1 January 2010. FRS 103 Business Combinations (revised) The revised FRS 103 introduces a number of changes to the accounting for business combinations that will impact the amount of goodwill recognised.2 Summary of significant accounting policies (cont’d) Changes in accounting policies (cont’d) The principal effects of these changes are as follows: FRS 103 Business Combinations (revised) and FRS 27 Consolidated and Separate Financial Statements (revised) The revised FRS 103 Business Combinations and FRS 27 Consolidated and Separate Financial Statements are applicable for annual periods beginning on or after 1 July 2009. and future reported results. Therefore. 2. and does not impact the Group’s consolidated financial statements in respect of transactions with non-controlling interests. the reported results in the period that an acquisition occurs. to measure non-controlling interest at fair value. Changes in significant accounting policies resulting from the adoption of the revised FRS 103 include: – Transaction costs would no longer be capitalised as part of the cost of acquisition but will be expensed immediately. – – – According to its transitional provisions. the revised FRS 103 has been applied prospectively. Losses incurred by a subsidiary are allocated to the non-controlling interest even if the losses exceed the non-controlling interest in the subsidiary’s equity. such a change will have no impact on goodwill. attribution of losses to non-controlling interests and disposal of subsidiaries before 1 January 2010. 38 Asian Micro Holdings Limited .NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. the previously held equity interests in the acquiree is remeasured to fair value at the acquisition date with any corresponding gain or loss recognised in profit or loss. any interest retained is measured at fair value with the corresponding gain or loss recognised in profit or loss. the revised FRS 27 has been applied prospectively. Assets and liabilities that arose from business combinations whose acquisition dates are before 1 January 2010 are not adjusted. The Group elects for each acquisition of a business. and When control over a subsidiary is lost. and this impacts the amount of goodwill recognised. or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets.

revenues and expenses. it will have no impact on the financial position or financial performance of the Company when implemented in 2011. or has significant influence over the entity. The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date. The Company is currently determining the impact of the changes to the definition of a related party has on the disclosure of related party transaction. Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets. The revised standard also introduces a partial exemption of disclosure requirements for governmentrelated entities. However. The revised FRS 24 expands the definition of a related party and would treat two entities as related to each other whenever a person (or a close member of that person’s family) or a third party has control or joint control over the entity. the directors expect that the adoption of the other standards and interpretations above will have no material impact on the financial statements in the period of initial application. therefore future depreciation charges could be revised. Revised FRS 24 Related Party Disclosures The revised FRS 24 clarifies the definition of a related party to simplify the identification of such relationships and to eliminate inconsistencies in its application. As this is a disclosure standard. and disclosures at the end of each reporting period. that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. 2. 2. The carrying amount of the Group’s plant and equipment at 30 June 2011 is stated in Note 3 to the financial statements. judgements and assumptions that affect the reported amounts of assets.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. Management estimates the useful lives of the plant and equipment to be within 1 to 10 years.3 Summary of significant accounting policies (cont’d) Standards issued but not yet effective The Group has not adopted the following standards and interpretations that have been issued but not yet effective: Effective for annual periods beginning on or after 1 January 2011 1 January 2011 1 January 2011 1 July 2011 1 January 2012 Description Revised FRS 24 Related Party Disclosures Amendments to INT FRS 114 Prepayments of a Minimum Funding Requirement INT FRS 115 Agreements for the Construction of Real Estate Amendments to FRS 107 Disclosures – Transfers of Financial Assets Amendments to FRS 12 Deferred Tax – Recovery of Underlying Assets Except for the revised FRS 24.4 Significant accounting estimates and judgements The preparation of the Group’s financial statements requires management to make estimates. These are common life expectancies applied in the industry. Annual Report 2011 39 . (i) Depreciation of plant and equipment The costs of plant and equipment for the manufacturing activities are depreciated on a straight-line basis over the useful lives of the plant and equipment. The nature of the impending changes in accounting policy on adoption of the revised FRS 24 is described below. liabilities. uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future periods.

which is dependent on the terms and conditions of the grant. such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. There are certain transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgement is involved in determining the group-wide provision for income taxes. (v) Employee share options The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. volatility and dividend yield and making assumptions about them. (iv) Income taxes The Group has exposure to income taxes in a number of jurisdictions.909.000). the amount and timing of future cash flows are estimated based on historical loss experience for assets with similar credit risk characteristics. 2. To determine whether there is objective evidence of impairment.961. The Group recognises liabilities for expected tax issues based on estimates of whether additional taxes will be due. Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised.4 Summary of significant accounting policies (cont’d) Significant accounting estimates and judgements (cont’d) (ii) Impairment of non-financial assets The Group assesses whether there are any indicators of impairment for all non-financial assets at each reporting date. The carrying value of the unrecognised tax losses at 30 June 2011 was $19. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised. based upon the likely timing and level of future taxable profits. the Group considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments. When value in use calculations are undertaken. Property.000 (2010: $15. The carrying amounts of the Group’s loans and receivables at the balance sheet date are disclosed in Note 7 to the financial statements. Estimating fair value for sharebased payment transactions requires determining the most appropriate valuation model. plant and equipment are tested for impairment when there are indicators that the carrying amounts may not be recoverable. 40 Asian Micro Holdings Limited . This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the share option.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. (iii) Impairment of loans and receivables The Group assesses at each balance sheet date whether there is any objective evidence that a financial asset is impaired. Where there is objective evidence of impairment. management estimates the expected future cash flows from the asset or cash-generating unit and chooses a suitable discounted rate in order to calculate the present value of those cash flows. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 25. Where the final tax outcome of these matters is different from the amounts that were initially recognised.

Any excess of the sum of the fair value of the consideration transferred in the business combination. previously held equity interests in the acquiree are remeasured to fair value at the acquisition date and any corresponding gain or loss is recognised in profit or loss. Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. the Group considers factors such as the industry/sector performance. The Group has made assumptions in relation to the expected costs of repair and maintenance. Annual Report 2011 41 . it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms. the amount and timing of future cash flows are estimated based on the forecasted performance of the subsidiary company. operational and financing cash flow. To determine whether there is objective evidence of impairment.797 had been reversed as the warranty period has lapsed during the year. If the contingent consideration is classified as equity.5 Basis of consolidation Business combinations from 1 January 2010 Business combinations are accounted for by applying the acquisition method. the amount of non-controlling interest in the acquiree (if any). At 30 June 2011. Acquisition-related costs are recognised as expenses in the periods in which the costs are incurred and the services are received. or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets. Where there is objective evidence of impairment. it is not remeasured until it is finally settled within equity. will be recognised in accordance with FRS 39 either in profit or loss or as a change to other comprehensive income. (vii) Provision for warranty The Group recognises provision for warranty in accordance with the accounting policy stated in Note 2.4 Summary of significant accounting policies (cont’d) Significant accounting estimates and judgements (cont’d) (vi) Impairment of investment in subsidiary and associated companies The Group assesses at each balance sheet date whether there is any objective evidence that the investments in a subsidiary is impaired. This includes the separation of embedded derivatives in host contracts by the acquiree. economic circumstances and pertinent conditions as at the acquisition date.18. the excess is recognised as gain on bargain purchase in profit or loss on the acquisition date. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. 2. whether non-controlling interest in the acquiree (if any) is recognised on the acquisition date at fair value. The carrying amounts of the Group’s investments in subsidiary and associated companies at the balance sheet date are disclosed in Notes 4 and 5 to the financial statements. over the net fair value of the acquiree’s identifiable assets and liabilities is recorded as goodwill. In instances where the latter amount exceeds the former. When the Group acquires a business. and the fair value of the Group’s previously held equity interest in the acquiree (if any). In business combinations achieved in stages. The accounting policy for goodwill is set out in Note 2.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. the provision of $51. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability. Management will exercise significant judgement to evaluate the financial conditions and business prospects of the investments. The Group elects for each individual business combination.9. 2.

Business combinations achieved in stages were accounted for as separate steps. In such circumstances. Any additional acquired share of interest did not affect previously recognised goodwill. Subsequent adjustments to the contingent consideration were recognised as part of goodwill.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. Transaction costs directly attributable to the acquisition formed part of the acquisition costs. Changes in the Company owners’ ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.7 Foreign currency The Group’s consolidated financial statements are presented in Singapore Dollars. directly or indirectly. Contingent consideration was recognised if. (a) Transactions and balances Transactions in foreign currencies are measured in the respective functional currencies of the Company and its subsidiaries and are recorded on initial recognition in the functional currencies at exchange rates approximating those ruling at the transaction dates. embedded derivatives separated from the host contract by the acquiree were not reassessed on acquisition unless the business combination resulted in a change in the terms of the contract that significantly modified the cash flows that otherwise would have been required under the contract. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Adjustments to those fair values relating to previously held interests are treated as a revaluation and recognised in equity. 42 Asian Micro Holdings Limited . 2. 2.5 Summary of significant accounting policies (cont’d) Basis of consolidation (cont’d) Business combinations prior to 1 January 2010 In comparison to the above mentioned requirements. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the end of the reporting period. and are presented separately in the consolidated statement of comprehensive income and within equity in the consolidated balance sheet.6 Transactions with non-controlling interests Non-controlling interest represents the equity in subsidiaries not attributable. the carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. 2. to owners of the Company. separately from equity attributable to owners of the Company. the Group had a present obligation. which is also the Company’s functional currency. The non-controlling interest (formerly known as minority interest) was measured at the proportionate share of the acquiree’s identifiable net assets. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the parent. When the Group acquired a business. the following differences applied: Business combinations are accounted for by applying the purchase method. and only if. the economic outflow was more likely than not and a reliable estimate was determinable.

the assets and liabilities of foreign operations are translated into SGD at the rate of exchange ruling at the end of the reporting period and their profit or loss are translated at the exchange rates prevailing at the date of the transactions. Such cost includes the cost of replacing part of the property.10 . plant and equipment is recognised as an asset if.10 . plant and equipment. The exchange differences arising on the translation are recognised in other comprehensive income. which are recognised initially in other comprehensive income and accumulated under foreign currency translation reserve in equity.10 Annual Report 2011 43 .20. plant and equipment and borrowing costs that are directly attributable to the acquisition of a qualifying property. The foreign currency translation reserve is reclassified from equity to profit or loss of the Group on disposal of the foreign operation. On disposal of a foreign operation. 2. which is the method the Group uses to complete its consolidation. For partial disposals of associates that are foreign operations.10 . the proportionate share of the cumulative amount of the exchange differences are re-attributed to noncontrolling interest and are not recognised in profit or loss. (b) Consolidated financial statements For consolidation purpose. The cost of an item of property. and only if.8 Property. it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The accounting policy for borrowing costs is set out in Note 2. plant and equipment and furniture and fixtures are measured at cost less accumulated depreciation and any accumulated impairment losses. The Group has elected to recycle the accumulated exchange differences in the separate component of other comprehensive income that arises from the direct method of consolidation. the proportionate share of the accumulated exchange differences is reclassified to profit or loss.10 2 3 . plant and equipment are initially recorded at cost. equipment and motor vehicles Office equipment and computers Communications equipment Renovations and electrical installations 5 3 3 1 . plant and equipment All items of property. the component of other comprehensive income relating to that particular foreign operation is recognised in profit or loss. Depreciation is computed on a straight-line basis over the estimated useful life of the asset as follows: Years Furniture and fittings Air conditioners Machinery.7 Summary of significant accounting policies (cont’d) Foreign currency (cont’d) (a) Transactions and balances (cont’d) Exchange differences arising on the settlement of monetary items or on translating monetary items at the end of the reporting period are recognised in profit or loss except for exchange differences arising on monetary items that form part of the Group’s net investment in foreign operations. In the case of a partial disposal without loss of control of a subsidiary that includes a foreign operation. 2.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. Subsequent to recognition.

if appropriate. The residual value. The carrying values of property. 2. Any gain or loss on de-recognition of the asset is included in the income statement in the year the asset is derecognised. accumulated impairment losses. Goodwill disposed of in this circumstance is measured based on the relative fair values of the operation disposed of and the portion of the cash-generating unit retained. If any such indication exists.8 Summary of significant accounting policies (cont’d) Property. Following initial recognition. plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. allocated to each of the Group’s cash-generating units that are expected to benefit from the synergies of the combination. goodwill is measured at cost less For the purpose of impairment testing. Where goodwill forms part of a cash-generating unit and part of the operation within that cash-generating unit is disposed of. goodwill acquired in a business combination is. or when annual impairment assessment for an asset is required. the estimated future cash flows expected to be generated by the asset 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. In assessing value in use. plant and equipment (cont’d) Assets under construction included in plant and equipment are not depreciated as these assets are not yet available for use. an impairment loss is recognised in the income statement. the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. including the allocated goodwill. Where the recoverable amount of the cash-generating unit is less than the carrying amount.9 Intangible assets Goodwill Goodwill is initially measured at cost. The Group’s goodwill was fully impaired in prior year.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. unless the asset does not generate cash inflows that are largely independent of those from other assets. Impairment losses recognised for goodwill are not reversed in subsequent periods. and adjusted prospectively. An item of property. from the acquisition date. Fully depreciated assets are retained in the financial statements until they are no longer in use. irrespective of whether other assets or liabilities of the acquiree are assigned to those units. the asset is considered impaired and is written down to its recoverable amount. the Group makes an estimate of the asset’s recoverable amount. The cash-generating unit to which goodwill has been allocated is tested for impairment annually and whenever there is an indication that the cash-generating unit may be impaired. Where the carrying amount of an asset or cash-generating unit exceeds its recoverable amount. with the recoverable amount of the cash-generating unit. 44 Asian Micro Holdings Limited . by comparing the carrying amount of the cash-generating unit. useful life and depreciation method are reviewed at each financial year-end. 2.10 Impairment of non-financial assets The Group assesses at each reporting date whether there is an indication that an asset may be impaired. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset. 2.

had no impairment loss be recognised previously. That increase cannot exceed the carrying amount that would have been determined. When the Group’s share of losses in an associate equals or exceeds its interest in the associate. the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount in the profit or loss. The Group determines at each balance sheet date whether there is any objective evidence that the investment in the associate is impaired.10 Summary of significant accounting policies (cont’d) Impairment of non-financial assets (cont’d) Impairment losses are recognised in profit or loss.11 Subsidiaries A subsidiary is an entity over which the Group has the power to govern the financial and operating policies so as to obtain benefits from its activities. in which the Group has significant influence. Under the equity method. unless it has incurred obligations or made payments on behalf of the associate. adjustments are made to bring the accounting policies in line with those of the Group. The financial statements of the associate are prepared as of the same reporting date as the Company. If this is the case. 2. net of depreciation. An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. 2. the carrying amount of the asset is increased to its recoverable amount. In the Company’s separate financial statements. An associate is equity accounted for from the date the Group obtains significant influence until the date the Group ceases to have significant influence over the associate. the Group does not recognise further losses. not being a subsidiary or a joint venture. The profit or loss reflects the share of the results of operations of the associates. Such reversal is recognised in the profit or loss.12 Associates An associate is an entity. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. 2. Where necessary. the Group determines whether it is necessary to recognise an additional impairment loss on the Group’s investment in its associates. investments in subsidiaries are accounted for at cost less impairment losses. liabilities and contingent liabilities over the cost of the investment is included as income in the determination of the Group’s share of results of the associate in the period in which the investment is acquired. Annual Report 2011 45 . If that is the case. the Group measures and recognises any retained investment at its fair value. Any excess of the Group’s share of the net fair value of the associate’s identifiable asset. the investment in associates is carried in the balance sheet at cost plus post-acquisition changes in the Group’s share of net assets of the associates. The Group’s investments in associates are accounted for using the equity method. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the aggregate of the retained investment and proceeds from disposal is recognised in profit or loss. Goodwill relating to associates is included in the carrying amount of the investment and is neither amortised nor tested individually for impairment.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. After application of the equity method. Upon loss of significant influence over the financial and operation decision in the associate.

the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that has been recognised directly in other comprehensive income is recognised in profit or loss. the Group becomes a party to the contractual provisions of the financial instrument. All regular way purchases and sales of financial assets are recognised or derecognised on the trade date. When financial assets are recognised initially. Subsequent to initial recognition. less impairment. they are measured at fair value. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired. 46 Asian Micro Holdings Limited . 2.14 Financial assets Initial recognition and measurement Financial assets are recognised when. plus. in the case of financial assets not at fair value through profit or loss. except that impairment losses. The cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment when the financial asset is derecognised. and only when. Available-for-sale financial assets Available-for-sale financial assets include equity investments.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. in which one or more of the directors or shareholders of the Company have a significant equity interest or exercise significant influence. directly attributable transaction costs. which are neither classified as held for trading nor designated at fair value through profit or loss. De-recognition A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. 2. not being a subsidiary or an associated company. as well as through the amortisation process. Any gains or losses from changes in fair value of the financial asset are recognised in other comprehensive income. ie the date that the Group commits to purchase or sell the asset. loans and receivables are measured at amortised cost using the effective interest method.13 Summary of significant accounting policies (cont’d) Affiliated companies An affiliated company is a company. Subsequent measurement Loans and receivables Non-derivatives financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. After initial recognition. On de-recognition of a financial asset in its entirety. Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less impairment loss. available-for-sale financial assets are subsequently measured at fair value. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace concern. foreign exchange gains and losses on monetary instruments and interest calculated using the effective interest method are recognised in profit or loss. The Group determines the classification of its financial assets at initial recognition.

The amount of the loss is recognised in profit or loss. ‘Significant’ is to be evaluated against the original cost of the investment and ‘prolonged’ against the period in which the fair value has been below its original cost. To determine whether there is objective evidence that an impairment loss on financial assets has been incurred.15 Summary of significant accounting policies (cont’d) Impairment of financial assets The Group assesses at each balance sheet date whether there is any objective evidence that a financial asset is impaired. the carrying amount of impaired financial assets is reduced directly or if an amount was charged to the allowance account. economic or legal environment in which the issuer operates. The amount of reversal is recognised in profit or loss. objective evidence of impairment include (i) significant financial difficulty of the issuer or obligor. 2. If an available-for-sale financial asset is impaired. the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. the amounts charged to the allowance account are written off against the carrying value of the financial asset. Available-for-sale financial assets In the case of equity investments classified as available-for-sale. If there is objective evidence that an impairment loss on loans and receivables carried at amortised cost has been incurred. or continues to be recognised are not included in a collective assessment of impairment. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset. an amount comprising the difference between its acquisition cost (net of any principal repayment and amortisation) and its current fair value. (ii) information about significant changes with an adverse effect that have taken place in the technological. it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. whether significant or not. the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised. the Group first assesses individually whether objective evidence of impairment exists individually for financial assets that are individually significant. Reversals of impairment losses in respect of equity instruments are not recognised in profit or loss. or collectively for financial assets that are not individually significant. less any impairment loss previously recognised in profit or loss. increase in their fair value after impairment are recognised directly in other comprehensive income. market. Financial assets carried at amortised cost For financial assets carried at amortised cost. Annual Report 2011 47 . When the asset becomes uncollectible. in a subsequent period. the previously recognised impairment loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. and (iii) a significant or prolonged decline in the fair value of the investment below its costs. If. is transferred from other comprehensive income and recognised in profit or loss.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. The carrying amount of the asset is reduced through the use of an allowance account. and indicates that the cost of the investment in equity instrument may not be recovered. the Group considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments. Assets that are individually assessed for impairment and for which an impairment loss is.

and only when.18 Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event. other financial liabilities are subsequently measured at amortised cost using the effective interest rate method. 2. allowance is provided for damaged. Net realisable value is the estimated selling price in the ordinary course of business. 2. Gains and losses are recognised in profit or loss when the liabilities are derecognised. These also include bank overdrafts that form an integral part of the Group’s cash management. first-out basis. less estimated costs of completion and the estimated costs necessary to make the sale.16 Summary of significant accounting policies (cont’d) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and at bank and demand deposits. provisions are discounted using a current pre tax rate that reflects. Where necessary.17 Inventories Inventories are stated at the lower of cost and net realisable value. obsolete and slow moving items to adjust the carrying value of inventories to the lower of cost and net realisable value. If the effect of the time value of money is material. All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair value through profit or loss. it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be estimated reliably. Provision for warranty Provisions for warranty-related costs are recognised when the product is sold or service provided. and through the amortisation process. 2. Finished goods and work-in-progress – costs of direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. 2. Subsequent measurement After initial recognition. If it is no longer probable that an outflow of economic resources will be required to settle the obligation. The Group determines the classification of its financial liabilities at initial recognition. where appropriate. the Group becomes a party to the contractual provisions of the financial instrument. the risks specific to the liability. the provision is reversed. 48 Asian Micro Holdings Limited .NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. directly attributable transaction costs. the increase in the provision due to the passage of time is recognised as a finance cost. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.19 Financial liabilities Initial recognition and measurement Financial liabilities are recognised when. When discounting is used. Costs incurred in bringing the inventories to their present location and condition are accounted for as follows: Raw materials – purchase costs on a first-in.

such an exchange or modification is treated as a de-recognition of the original liability and the recognition of a new liability. Borrowing cost consists of interest and other costs that an entity incurs in connections with the borrowing of funds. When an existing financial liability is replaced by another from the same lender on substantially different terms. or the terms of an existing liability are substantially modified. the Singapore companies in the Group make contributions to the Central Provident Fund scheme in Singapore. In particular. provided that all other performance and/or service conditions are satisfied.20 Borrowing costs Borrowing costs are recognised as expenses in the period in which they are incurred. The employee share option reserve is transferred to retained earnings upon expiry of the share option. When the options are exercised. which are treated as vested irrespective of whether or not the market condition or non-vesting condition is satisfied. with a corresponding increase in the employee share option reserve. 2. Contributions to defined contribution pension schemes are recognised as an expense in the period in which the related service is performed. Annual Report 2011 49 .21 Employee benefits (i) Defined contribution plan The Group participates in the national pension schemes as defined by the laws of the countries in which it has operations. and the difference in the respective carrying amounts is recognised in profit or loss. The charge or credit to profit or loss for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in employee benefits expense. 2. The cost of these equity-settled transactions with employees is measured by reference to the fair value of the options at the date on which the options are granted. the amount of the compensation cost that otherwise would be recognised over the remainder of the vesting period is recognised immediately in profit or loss upon cancellation. (ii) Employee share option plans Employees and directors of the Group receive remuneration in the form of share options as consideration for services rendered. The cumulative expense recognised at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of options that will ultimately vest. it is accounted for as a cancellation. over the vesting period. In the case where the option does not vest as the result of a failure to meet a non-vesting condition that is within the control of the Group or the employee. No expense is recognised for options that do not ultimately vest. the employee share option reserve is transferred to share capital if new shares are issued.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. a defined contribution pension scheme. In such case.19 Summary of significant accounting policies (cont’d) Financial liabilities (cont’d) De-recognition A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. 2. except for options where vesting is conditional upon a market or non-vesting condition. This cost is recognised in profit or loss.

if lower. (ii) Tray recycling services Revenue on tray recycling services is recognised when the work is completed and the recycled items are delivered to the customer. if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. Operating lease payments are recognised as an expense in profit or loss on a straight-line basis over the lease term. The Group has concluded that it is acting as a principal in all of its revenue arrangements.23(vi). associated costs or the possible return of goods. Initial direct costs incurred in negotiating an operating leases are added to the carrying amount of the leased asset and recognised over the lease term on the same bases as rental income. (ii) As lessor Leases where the Group retains substantially all the risks and rewards of ownership of the asset are classified as operating leases. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense over the lease term on a straight-line basis. or contains a lease is based on the substance of the arrangement at inception date: whether fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset. excluding sales taxes or duty. 50 Asian Micro Holdings Limited .22 Summary of significant accounting policies (cont’d) Leases The determination of whether an arrangement is. usually on delivery of goods. which transfer to the Group substantially all the risks and rewards incidental to ownership of the leased item. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term.23 Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Any initial direct costs are also added to the amount capitalised. For arrangements entered into prior to 1 January 2005. Revenue is measured at the fair value of consideration received or receivable. The accounting policy for rental income is set out in Note 2. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. The following specific recognition criteria must also be met before revenue is recognised: (i) Sale of goods Revenue from sale of goods is recognised upon the transfer of significant risk and rewards of ownership of the goods to the customer. The Group assesses its revenue arrangements to determine if it is acting as principal or agent. 2. 2. at the present value of the minimum lease payments. Revenue is not recognised to the extent where there are significant uncertainties regarding recovery of the consideration due. are capitalised at the inception of the lease at the fair value of the leased asset or. (i) As lessee Finance leases. Finance charges are charged to profit or loss. the date of inception is deemed to be 1 January 2005 in accordance with the transitional requirements of INT FRS 104.

and transfer of title and risk of the compressed natural gas to the customer. (iv) Interest income Interest income is recognised using the effective interest method. except where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and. (vi) Rental income Rental income is accounted for on a straight-line basis over the leased terms. Current income taxes are recognised in profit or loss except to the extent that the tax relates to items recognised outside profit or loss. Deferred tax liabilities are recognised for all temporary differences. at the time of the transaction. and the carry forward of unused tax credits and unused tax losses can be utilised except where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and. carry forward of unused tax credits and unused tax losses. 2. usually on delivery. in the countries where the Group operates and generates taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the end of the reporting period. Revenue on services is recognised when services are rendered. Deferred income tax assets are recognised for all deductible temporary differences. (ii) Deferred tax Deferred income tax is provided using the liability method on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. 2.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. affects neither the accounting profit nor taxable profit or loss. to the extent that it is probable that taxable profit will be available against which the deductible temporary differences. Annual Report 2011 51 . affects neither the accounting profit nor taxable profit or loss.23 Summary of significant accounting policies (cont’d) Revenue recognition (cont’d) (iii) Compressed natural gas supply products and services Revenue on compressed natural gas supply products is recognised upon the completion of installation and commissioning of the equipment. (v) Management fees Management fees are recognised when services are rendered. at the time of the transaction. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. either in other comprehensive income or directly in equity.24 Taxes (i) Current tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities.

in which case the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable. 2.26 Share capital and share issue expenses Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs directly attributable to the issuance of ordinary shares are deducted against share capital.25 Segment reporting For management purposes. based on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. The net amount of sales tax recoverable from. Contingent liabilities and assets are not recognised on the balance sheet of the Group.24 Summary of significant accounting policies (cont’d) Taxes (cont’d) (ii) Deferred tax (cont’d) The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Deferred income tax relating to items recognised outside profit or loss is recognised outside profit or loss. Unrecognised deferred tax assets are reassessed at the end of each reporting period and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. or payable to. including the factors used to identify the reportable segments and the measurement basis of segment information. and Receivables and payables that are stated with the amount of sales tax included. expenses and assets are recognised net of the amount of sales tax except: Where the sales tax incurred in a purchase of assets or services is not recoverable from the taxation authority. 2. the Group is organised into operating segments based on their products and services which are independently managed by the respective deputy managers responsible for the performance of the respective segments under their charge. (iii) Sales tax Revenues.27 Contingencies A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future event(s) not wholly within the control of the Group. Deferred tax assets and deferred tax liabilities are offset. 52 Asian Micro Holdings Limited . if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. The deputy managers report directly to the CEO of the Company who regularly reviews the segment results in order to allocate resources to the segments and to assess the segment performance. 2. 2. Additional disclosures on each of these segments are shown in Note 31. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2. the taxation authority is included as part of receivables or payables in the balance sheet.

2. is controlled by. The party is an associate. any individual referred to in (c) or (d). or has joint control over the Group. Annual Report 2011 53 .29 Government grants The Group received cash grant from government relating to the Jobs Credit Scheme. and The party is an entity that is controlled. 2. directly or indirectly. (i) (ii) (iii) (b) (c) (d) (e) controls. has an interest in the Group that gives it significant influence over the Group. The party is a member of the key management personnel of the Group or its parent. Grants related to income are presented as a credit in profit or loss as “Other operating income”. jointly controlled or significantly influenced by or for which significant voting power in such entity resides with. or is under common control with. The party is a close member of the family of any individual referred to in (a) or (c). directly or indirectly through one or more intermediaries. Government grant is recognised in profit or loss on a systematic basis over the periods in which the entity recognises as expenses the related costs for which the grants are intended to compensate. the Group.28 Summary of significant accounting policies (cont’d) Related parties A party is considered to be related to the Group if: (a) The party.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 2.

equipment and motor vehicles $ Communications equipment $ Assets under construction $ Office equipment and computers $ Renovations and electrical installations $ 125.118.079 .568 – – – 15.817.411) (1.768) (16.617) (31.043) 16.461 – 1.335 8.920) (182.776 – – – – (97.208) (6.384 (794.891) 873.830 536.716 458.041) (574.886 (405.531) (14.450) 8.194 794.122.332) – – – – – – – 3.588.038.813 4.123.194.285 (388.500) – 59.026 10.000 – (3.849) – (2.096) (387.344) 229.561) (3.179 9.320.026.144) At 30 June 2011 27.479. Property.855.350.178) (1.881 19.420 – – – (688.011.872) (102.171) 937.179 (187.592 7.725 (988.008) (89.326) 85.300 (1.044. plant and equipment Group Furniture and fittings $ NOTES TO THE FINANCIAL STATEMENTS Asian Micro Holdings Limited Cost At 1 July 2009 Additions Disposals Written off Translation difference 288.633) (716.479) At 30 June 2010 and 1 July 2010 Additions Disposals Transfer Disposal of subsidiaries Written off Translation difference 256.300) – (25.279 – – (3.754 (3.710 268.235) – 3.858) (5.102.162 – – (115.040 – (13.938 66.469 – (7.298) – 229.576) (2.304) 779.154) (28.441) 188.54 30 June 2011 Air conditioners $ Total $ Machinery.235 – – (937.568 59.507) (6.047 3.038) – – (216.280) 14.302) (558.872) – (137.555 1.

287 (1.318.925 18.759 188.561) (3.568 59.960) – – – – – – 13.053.049 (538.312 (1. equipment and motor vehicles $ Communications equipment $ Assets under construction $ Office equipment and computers $ Renovations and electrical installations $ Accumulated depreciation 124.068 3.148 At 1 July 2010 Charge for the year Disposals Impairment Written off Translation difference 257.028 – – 230.394 (768.453 6.235) – 2.333 (248.771) 12.858) (5.792 23.829 229.490 (382.614) (27.638 132.3.427.552) (125. plant and equipment (cont’d) Group Furniture and fittings $ Total $ Air conditioners $ Machinery.153 (2.133) At 30 June 2011 24.107) 4.069.518) – – – – – – – 2.380) 9.834) 7.104) (2.899 At 30 June 2010 10.433 – 868.447 (75.719.564 695.476 16.157) – – – – – – – – 8.266 6.038) – 1.586 NOTES TO THE FINANCIAL STATEMENTS Annual Report 2011 30 June 2011 55 .561) 46.427) (9.867) 7.235 – – – (937.315 499.662 (775.059) 514.302) At 30 June 2010 and 1 July 2010 Charge for the year Disposals Disposal of subsidiaries Impairment loss Written off Translation difference 246.917 – (641.409) 937.401 At 30 June 2011 2.459) (6.352 – (83.749 – – – (3.780.052.097 (4.037) 690.329) (26.063) 125.326 758.591.240) (562.441 (7.944 157.515 1.127 – – (2.048 (243.097.488 (14.197 9.951 1.106 4.750 499.872.053.382 53.677.437) (430.029.984 39.872) (93.054 437.770) 157.365.465) 666.956 80.614 (213.194.716.066) (1.017 – (93.179 1.546) 528.167) – (1.893 – – – (97.804) 166. Property.662 112.493 Net book value 62.

670 56 Asian Micro Holdings Limited .729 4.136 6. equipment and motor vehicles held under finance leases as at 30 June 2011 was approximately $279.232 has been recognised in revenue. The impairment loss amounting to $166. Property. the Group acquired property.287 has been recognised in administrative expenses.136 – 6.835 33. a subsidiary of the Group within the Natural Gas Vehicle (“NGV”) related business segment made impairment of its motor vehicles as this subsidiary had been making losses. subsidiaries of the Group within the tray recycling segment made impairment of their machinery and equipment as these subsidiaries had been making losses.835 – 37.153 has been recognised in administrative expenses. The impairment loss amounting to $528. Impairment loss During the financial year.971 699 44.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 3.136 43. Assets under construction During the year.088 (2010: $185.865 – 699 699 37.455 (2010: $89.729 10.510) using finance leases.835 33.805 – – – – 4.136 4. The gain on disposal amounting to $32.835 6. plant and equipment (cont’d) Assets under finance lease During the year. In 2010. plant and equipment with an aggregate cost of approximately $155. Leased assets are pledged as security for the related finance lease liabilities. The carrying amount of machinery.106 – – 37.729 6.136 – 6. the CNG refilling station has been fully constructed and disposed to a customer following the change in the intention of use.645). Office equipment and computer $ Company Motor vehicles $ Furniture and fittings $ Total $ Cost At 1 July 2009 and 30 June 2010 Additions At 30 June 2011 Accumulated depreciation At 1 July 2010 and 30 June 2010 Depreciation charge for the year At 30 June 2011 Net book value At 30 June 2010 At 30 June 2011 – 699 37.

Full impairment losses of $600.765.000 600.431.077 During the financial year.765.101 1.865.093) 2.170 (7. Bhd.. these subsidiaries are unable to generate sufficient operating cash flows.865.000 and $46. Investments in subsidiaries Company 2011 $ Unquoted equity investments.142 was written-off as a result of disposal of subsidiaries. (“AMM”) (3) Singapore 100 100 168. respectively.013 Annual Report 2011 57 .059. (“AMT”) (2) Singapore Precision tray cleaning services Precision tray cleaning services and manufacturer of clean room grade polythene packaging materials Trading in natural gas vehicle (“NGV”) and compressed natural gas (“CNG”) supplies Trading in clean room supplies Currently inactive 100 100 3.290 3.000 ACI Industries Pte Ltd (“ACI”) (1) Asian Micro Sdn. For the year ended 30 June 2010.510.013 2. Ltd.387 Malaysia 100 100 2.264.101 AM NGV (S) Pte Ltd (“AM NGV (S)”) (1) Singapore 100 100 600. management performed an impairment test for the investments in AM NGV (S) Pte Ltd and SO NGV (S) Pte Ltd as these subsidiaries had been persistently making losses.510.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 4.264.139) 1. an impairment loss of $1.205.387 168. were recognised to fully write down the carrying amount of these subsidiaries as based on the financial budgets approved by the management.031 2010 $ 9. at cost Less: Impairment loss Carrying amount of investments 9.459. (i) Details of the subsidiaries held by the Company at the end of the financial year are as follows: Country of incorporation and place of business Effective equity interest held by the Group 2011 2010 % % Name of company Principal activities Cost of investment by the Company 2011 2010 $ $ Held by the Company Asian Micro (S) Pte Ltd (“AMS”) (1) Asian Micro (Thailand) Co.170 (7.805.290 Thailand 100 100 1.

Ltd.170 Details of the subsidiaries held by subsidiary companies at the end of the financial year are as follows: Country of incorporation and place of business Effective equity interest held by the Group 2011 2010 % % Name of company Principal activities Cost of investment by the Company 2011 2010 $ $ Held by subsidiary companies Micro Brite Technology Pte Ltd (“MBT”) (4) Asian Micro Technology (Wuxi) Co. Investments in subsidiaries (cont’d) (i) Details of the subsidiaries held by the Company at the end of the financial year are as follows (cont’d): Country of incorporation and place of business Effective equity interest held by the Group 2011 2010 % % Name of company Principal activities Cost of investment by the Company 2011 2010 $ $ Held by the Company A-P Engineering Pte Ltd (“APE”) (3) SO NGV (S) Pte Ltd (“SO NGV (S)”) (1) AM NGV (T) Co. Ltd (“AMW”) (3) Singapore Investment holding – 100 – – People’s Republic of China Currently inactive 100 100 – – 58 Asian Micro Holdings Limited .263 Singapore 74 74 74 74 Thailand Currently under liquidation Trading of NGV supplies 74 74 250. (“AM NGV (T)”) (6) AM NGV Auto Sales (Thailand) Co.264..263 105.000 Thailand 49 (Note a) 49 42 42 9. Ltd. (“AM NGV Autosales (T)”) (2) Singapore Currently under liquidation Currently inactive 80..1 80.1 105.264.000 250.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 4.170 (ii) 9..

. Accordingly. it has control over the financial and operational policies via the majority representation on the board of directors of AM NGV Autosales (T).C.. Ltd (“SAMRT”) (4) (1) (2) (3) (4) (5) (6) People’s Republic of China – 51 – – Audited by Ernst & Young LLP. Thailand Not required to be audited by the laws of its country of incorporation Disposed off during the year AM Suzhou is a subsidiary of MBT. Investments in subsidiaries (cont’d) (ii) Details of the subsidiaries held by subsidiary companies at the end of the financial year are as follows (cont’d): Country of incorporation and place of business Effective equity interest held by the Group 2011 2010 % % Name of company Principal activities Cost of investment by the Company 2011 2010 $ $ Held by subsidiary companies Wuxi Asian Brite Technology Co. Ltd (“AMSuzhou”) (5) People’s Republic of China – 100 – – Suzhou Asian Micro Recovery Technology Co. AM NGV Autosales (T) is accounted for as a subsidiary of the Group. Ltd (“ABT”) (3) People’s Republic of China Precision tray cleaning services and manufacture of clean room grade polythene packaging materials Precision tray cleaning services and manufacture of clean room grade polythene packaging materials Plastic waste collecting and recycling.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 4. and sales of scrap 100 100 – – Asian Micro Technology (Suzhou) Co. which has been disposed off Audited by local auditors in Thailand Note (a): While the Group holds 49% of issued share capital in AM NGV Autosales (T).. Annual Report 2011 59 . Accounting Office. Singapore Audited by J.

516 (121. the Group recorded trade payables of $302. The buyer of SAMRT agreed to forgo the payables in exchange of the 51% equity interest in SAMRT.214) (13.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 4. (2) 60 Asian Micro Holdings Limited .380) (1) (827.102) (2) 1 – 1 (163.911 (302.498 (500.381) (406.417 (1.112. the Group disposed off its equity interests in Micro Brite Technology Pte Ltd (“MBT”) and its subsidiary. Investments in subsidiaries (cont’d) Disposals of MBT Group and SAMRT During the financial year. The disposals resulted in a gain on disposal amounting to $163. Values of the assets and liabilities of MBT Group and SAMRT at the date of disposal and cash flow effects were: 2011 $ SAMRT Cash and cash equivalents Plant and equipment Other assets Total liabilities Carrying values of net liabilities Less: Forgiveness of trade and other payables Foreign currency reserve realised on disposal Gain on disposal of SAMRT (1) 13.144.772 671.797) (827.985 respectively.237) 1. the Group assessed the recoverability of the receivables from MBT Group and full allowance for doubtful trade and other receivables has been made. Ltd (the “MBT Group”) and Suzhou Asian Micro Recovery Technology (“SAMRT”) for cash consideration of $1 and forgiveness of trade and other payables of $302.112) MBT Group Other assets Total liabilities Carrying values of net liabilities Less: Sale consideration Foreign currency reserve realised on disposal Allowance for doubtful trade and other receivables Gain on disposal of MBT Group MBT Group Sale consideration Less: Cash and cash equivalents Cash inflow Net gain on disposal of subsidiaries (Note 19(a)) Net cash outflow (1) 317.214.074) 5.948 69. Upon disposal of MBT Group.962 (42.948) As at date of disposal.307) 254.985) (48. Asian Micro Technology (Suzhou) Co.985 due to SAMRT.

666 (1) 296.731) 3 (221.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 4.251 and a gain on disposal of AMPI amounting to $550.480) (763) 767 347.731.665 32. Inc. (“AMPI”) for cash considerations of $1 and $3 (Peso 100) respectively. Investments in subsidiaries (cont’d) Disposals of APP and AMPI In 2009.586 329. the Company disposed off its equity interest in A-P Precision Plastic Pte Ltd (“APP”) and Asian Micro Manufacturing Phils. The disposals resulted in a loss on disposal of APP amounting to $329.496 (51.597) 296.251 1 (767) (766) Annual Report 2011 61 . Values of the assets and liabilities of APP and AMPI at the date of disposal and cash flow effects were: 2010 $ APP Cash and cash equivalents Non-current assets Liabilities Carrying values of net assets Less: Sale consideration Foreign currency reserve realised on disposal Loss on disposal of APP Sale consideration Less: Cash and cash equivalents Cash outflow AMPI Carrying value of net assets Less: Sale consideration Foreign currency reserve realised on disposal Gain on disposal of AMPI Cash inflow Net gain on disposal of subsidiaries (Note 19(a)) Net cash outflow – (3) (3) (550.728) (550.

at cost At 1 July Share of post acquisition reserves Reclassified to other investments At 30 June Impairment loss At 1 July Reclassified to other investments At 30 June Carrying value at 30 June Details of associated company is as follows: Country of incorporation and place of business Effective equity interest held by the Group 2011 2010 % % 127.283) 68.389 (59.926 – 84. Bhd.106 – 68.926 (84.389 (1) Audited by a local firm in Malaysia.106 2011 $ 84.106) – (84.106 – – (68.926 42.463 127.926 (68. (“Suria”) (1) Held by the Company Held by a subsidiary Conversion of natural gas vehicles Malaysia – – – 20 7 27 – – – 84.926 – – (84.926) 84. the Group and the Company reclassified investment in associated company to other investments as the Group no longer has significant influence over the financial and operational decisions in this entity.106) – 2010 $ 127.389 (59.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 5(a) Investment in associated company Group 2011 $ Unquoted equity investments. During the financial year.926) – (84.926) – Name of company Principal activities Cost of investment 2011 2010 $ $ Suria Professional Service Centre Sdn.283) 68.926) – Company 2010 $ 84.106 (68. 62 Asian Micro Holdings Limited .106) 68.926 – 84.106) – (68.926 – 84.

106) – Annual Report 2011 63 . is as follows: 2010 $ Assets and liabilities Current assets Non-current assets Total assets Current liabilities Total liabilities Results: Revenue Loss for the year 350.150 492. not adjusted for the proportion of ownership interest held by the Group.106 (68.215.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 5(a) Investment in associated company (cont’d) The summarised financial information of the associate for 2010.538) 139.766) (1.509 (1. Bhd. Further details of the associated company are given in Note 5(a) to the financial statements.766) 5(b) Other Investments Group and Company 2011 $ Available for sale financial assets Unquoted equity investment At 1 July Reclassified from investment in associated company Impairment loss At 30 June The Group has 27% effective equity interest in Suria Professional Service Centre Sdn.359 631.215.135 (110. – 68.

035 37.636.029.275.535 – 4.380.598. Inventories Group 2011 $ Raw materials Work-in-progress Finished goods Total inventories at lower of cost and net realisable value 131.240. the Group wrote off $543 (2010: $175.397 (2010: $248.136 1.143 2.923 1.601 64 Asian Micro Holdings Limited .835) of trade receivables which are recognised as expenses in the income statement.443.594 1. 7. During the year.111.007 2.037) of inventories which are recognised as expenses in the income statement. They are recognised at their original invoice amounts which represent their fair values on initial recognition.824 10.066 being part of an inventory write-down made previously.335 – 4.335 – 2.333 698.427. the Group reversed $8. Trade and other receivables Group 2011 $ Trade and other receivables (current): Trade receivables Other debtors Deposits Due from subsidiaries (non-trade) (Note 8) Due from related parties (non-trade) (Note 8) Add: Cash and bank balances (Note 9) Total loans and receivables Trade receivables Trade receivables are non-interest bearing and are generally on 30 to 90 days’ terms. The Group also wrote off $Nil (2010: $123.517 – 5.723.166 508.371 – 108.543.055 2010 $ 286.282 98. the Group wrote down $714.789 During the financial year.085 3.085 – 84.815 522.151 8.561 26. 2010 $ 2011 $ Company 2010 $ 1. as the inventories were sold to customers above their carrying amounts.544 1.611 2.990 199.840 2.494) of inventories which are recognised as expenses in the income statement.701 623.317 188.991 16.310 1. During the financial year.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 6.314 – 5.621 33.

000) 80.857 303.248 80.232 357.979 452. other receivables and deposits of the Group denominated in the foreign currencies are as follows: Group 2011 $ Singapore dollars United States dollars 73. Trade and other receivables (cont’d) Allowance for doubtful trade and other receivables For the year ended 30 June 2011.646 12.979 3. The Group’s trade and other receivables that are impaired at the balance sheet date and the movement of the allowance accounts are as follows: Group 2011 $ Movement in trade receivables allowance accounts: At 1 July Charge for the year Write-back Write-off Exchange differences At 30 June Movement in other receivables allowance accounts: At 1 July Charge for the year Write-off At 30 June 321.540 187.266) (351.639 (6.384 (262.116 As at 30 June 2011.415 409.253 (2010: $12.453).259 72.608 2010 $ 230. the impairment loss recognised in the profit or loss for trade and other receivables was $12.193 433.948 Other receivables and deposits of the Company were denominated in its functional currency. trade receivables of the Group denominated in foreign currencies are as follows: Group 2011 $ Singapore dollars United States dollars 24.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 7.120) 321.354 – 77. As at 30 June 2011.025) 274.384) and $3.453 (48.234) 452.859) (17.447 882.354 Annual Report 2011 65 . respectively.700 7.525) (3.899 2010 $ 2010 $ 77.639 (2010: $187.899 12.207) (167.253 (245.

These receivables are unsecured and the analysis of their aging at the balance sheet date is as follows: Group 2011 $ Trade receivables past due: Less than 30 days 30 to 60 days 61 to 90 days 91 to 120 days More than 120 days 2010 $ 228.442 136.796.232 (2010: $321.616 47.818) that are past due at the balance sheet date but not impaired. The loan from related party bears interest at prevailing market interest rate of 5.060. These amounts are interest-free and are repayable on demand except for the loan from related party.499 2010 $ 66 Asian Micro Holdings Limited .697 1.499 3.165.219 52.792 43.457 8.215) (2. (See Note 15) Due from subsidiaries (non-trade) are stated after deducting the following allowance for doubtful receivables: Company 2011 $ Movement of allowance for doubtful receivables Balance at 1 July Provision during the year Write back during the year Written-off during the year Balance at 30 June 20.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 7. Receivables that are past due but not impaired The Group has trade receivables amounting to $341.065 81.903 602.979) respectively as at year end.176 18.019. the Company entered into an agreement with two executive directors to capitalise a portion of the loan from directors of $367. Trade and other receivables that are individually determined to be impaired at the balance sheet date relate to debtors that are in significant financial difficulties and have defaulted on payments.015 6.862.899) and $80.342 293.015 each in the share capital of the Company.818 8.584 by the issuance of new ordinary shares at $0. During the financial year.447 (2010: $452.342 (2010: $602.038) 20.677 – – 23.25% as at year end and the related party has agreed not to recall for repayment until end of October 2012.295 (4.080. These receivables are not secured by any collateral or credit enhancements. Trade and other receivables (cont’d) The above represents a provision for individually impaired trade and other receivables whose carrying values aggregate $274.171.825 52.586 341. Due from/(to) subsidiaries (non-trade) Due from/(to) related parties (non-trade) Loan from directors (non-trade) Loan from related party (non-trade) (non-current) These amounts are unsecured and are to be settled in cash.060.

795 381.00% to 0.085 (376.113 376.033) 271.113 2011 $ 955 25.25% (2010: 0.033 698.972) 1.516 There is no allowance for doubtful debts for amount due from related parties (non-trade) being recorded in 2010.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 8. Cash and cash equivalents Cash and cash equivalents as at 30 June were as follows: Group 2011 $ Cash and bank balances Fixed deposits Less: Fixed deposits pledged* Cash and cash equivalents 271.972 1.112.800) 1.511.00% to 0. cash and bank balances of the Group and the Company denominated in foreign currencies are as follows: Group 2011 $ Singapore dollars United States dollars 25. Due from/(to) subsidiaries (non-trade) Due from/(to) related parties (non-trade) Loan from directors (non-trade) Loan from related party (non-trade) (non-current) (cont’d) Due from related parties (non-trade) are stated after deducting the following allowance for doubtful receivables: Group 2011 $ Movement of allowance for doubtful receivables Balance at 1 July Provision during the year Written-off during the year Balance at 30 June – 1.807 427.807 2010 $ 1.794 81.840 (427.316 (398.621 (25. Movement of allowance for doubtful debts for amount due from related parties are recognised in other operating income as gain on disposal of subsidiaries.666) 955 Company 2010 $ 8.354 2010 $ 133.701 (76.151) 8. As at 30 June 2011.481 247.666 26.560 107.550 * This relates to fixed deposits pledged in connection with credit facilities granted by banks (Note 11).276 Annual Report 2011 67 .151 84. Cash at bank earns interest at rates based on daily bank deposit rates ranging from 0. 9.25%) per annum.050.427.550 76.050.

069.925 – 1. In 2010. Fixed deposits are placed with financial institutions for varying periods of between 1 month to 1 year depending on the immediate cash requirements of the Group.359.472 – 161.777.240.884 168.286 – 149.647 988. Cash and cash equivalents (cont’d) Cash and cash equivalents of the Company were denominated in its functional currency.current .625% (2010: 0.5% (2010: 0.957 1.277 – – – – 1.184 15.Due to subsidiaries (non-trade) (Note 8) .00% to 0.Bills payable to bank (Note 11) .028 each in the share capital of the Company.75% to 0.393 300.420.654 – 1.25% to 2.424 104.140 6.669 – – 784.555 22.713 owing to the creditor by a subsidiary. the Company entered into an agreement with a creditor to capitalise the debts of $370. 10.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 9.479.740 – 2. 2010 $ 2011 $ Company 2010 $ 707.Due to related parties (non-trade) (Note 8) .353 1.833 920.129.228.94%) per annum for SGD fixed deposits and from 2.Loan from directors (non-trade) (Note 8) .Accrued expenses (Note 13) Obligation under finance lease (Note 12) .828 455.488 – 200.586 129.431 72.060 1.710 7.001 400. The fixed deposits earn interest at fixed deposit rates ranging from 0.580 68 Asian Micro Holdings Limited .75%) per annum for Thai Baht (THB) fixed deposits.000 4. Trade and other payables Group 2011 $ Trade and other payables: Trade payables Other payables Total trade and other payables Add: .488 149.690 1.854.913.50% to 0.175.non-current Loan from related party (non-trade) (non-current) (Note 8) Total financial liabilities carried at amortised cost Trade payables Trade payables are non-interest bearing and are normally settled on 30 to 90 day terms.815 – 5.669 200. by the issuance of new ordinary shares of $0.451 – – 582.226 2.706 916.

000 (2010: $2. trade payables of the Group denominated in foreign currencies are as follows: Group 2011 $ Singapore dollars United States dollars Euro dollar – 122.033 (2010: $376.000) from the Company.88% to 6. American Converters Industries Pte Ltd (owned by two directors of the Company). 410.837 – 122. The Group’s trading facilities are secured by: (i) (ii) (iii) (iv) corporate guarantee of $2.631 11.540. bills payable of the Group denominated in foreign currency are as follows: Group 2011 $ United States dollars 354. other payables of the Group and the Company denominated in foreign currencies are as follows: Group 2011 $ Singapore dollars Other payables of the Company were denominated in its functional currency. a legal mortgage over a property of an affiliated company.100. and joint and several guarantee of $440. Annual Report 2011 69 . fixed deposits from the Group and the Company of $427.151) respectively.837 Other payables Other payables are non-interest bearing and are normally settled on 30 to 90 day terms.050 2010 $ 18.666 (2010: $76.547 2010 $ 759. As at 30 June 2011. Bills payable to banks The bills payable are secured and have repayment terms of less than 12 months.972) and $25. Trade and other payables (cont’d) Trade payables (cont’d) As at 30 June 2011. As at 30 June 2011.000 from the two directors of the Company.672 234.328 2010 $ 372.222 2.75% (2010: 5.25%) per annum.737 255.716 Interest on bills payable to banks was charged at 2.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 10.

400 1.2016 168. Accrued expenses Group 2011 $ Accrued expenses Accrued personnel expenses 578.1).424 7.740 22.129.19% 2013 .654 2011 $ 332.001 2010 $ 866.132.277 Company 2010 $ 284.19% 2012 72.864 341.343) to two executive directors of the Company (See Note 2.911 1. 70 Asian Micro Holdings Limited . Maturity 2011 $ Group 2010 $ Company 2011 2010 $ $ Current: Obligations under finance leases (secured) (Note 26(b)) Non-current: Obligations under finance leases (secured) (Note 26(b)) 7.637 (2010: $842.416 (2010: $150.137 920.555 7.047.520 844. the Company entered into an agreement with two executive directors to capitalise the directors’ salaries payable of $1. During the financial year.000).015 (2010: $0.027) each in the share capital of the Company.254 1.431 Accrued personnel expenses include executive directors’ salaries payable of $246.815 15.913.477 249.800 582. Obligations under finance leases Average effective interest rate % p.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 12. 13.884 129.a.184 6.925 Obligations under finance leases These obligations are secured by a charge over the leased assets (Note 3).393 104. by the issuance of new ordinary shares at $0.

591.043 344.584 38.713 150. All ordinary shares carry one vote per share without restriction. 15.000).416 (2010: $150.555. the Company capitalised trade payables of $370.400 24.173. the Group reversed the provision for warranty as the warranty period has lapsed.591. and $367.653.797) – – 51.600 463.713 by the issuance of new ordinary shares at $0.487 13.043 – 75.797 During the financial year.015 (2010: $0.556 – 363.928 36.591. In 2010.928 – 1.132.027) each in the share capital of the Company.215 370.505. Share capital Number of shares 2011 2010 Group and Company 2011 2010 $ $ Issued and fully paid ordinary shares: At 1 July Capitalisation of Trade payables Directors’ salaries Loan from directors At 30 June 363.416 367.043 37.028 each in the share capital of the Company.000 – 37. Provision Group Provision for warranty 2011 2010 $ $ At 1 July Arose during the financial year Unused amount reversed At 30 June 51.797 – 51.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 14.132. The Company has an employee share option plan (Note 25) under which options to subscribe for the Company’s ordinary shares have been granted to employees.240.584.173. respectively. The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. Annual Report 2011 71 . The ordinary shares have no par value. the Company capitalised the directors’ salaries payable to certain executive directors and a portion of the loan from directors of $1.795.928 During the financial year.000 5.797 – (51.494. by the issuance of new ordinary shares at $0.673.

580 110.949 3.104 4.972.483.099 (152. Upon disposal of the subsidiary in the financial year. Group and Company 2011 2010 $ $ At 1 July Grant of equity-settled share options Expiry of share options At 30 June 212. Share option reserve Share option reserve represents the equity-settled share options granted to employees (Note 25). the Group transferred the premium arising from the acquisition of non-controlling interests in prior year to accumulated losses.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 16.895.068 72 Asian Micro Holdings Limited . Premium paid on acquisition of non-controlling interests The Group adopted the entity concept method to account for additional shares in subsidiary acquired from a minority shareholder.944 219.107 8.792) 389.987 255.944 17.005 2.721.013. Revenue Group 2011 $ 2010 $ (Reclassified) 12.835 (42.007 183. and is reduced by the expiry of the share options to retained earnings. The acquisition of additional shares from the minority shareholder is treated as a transaction between owners and the difference between the cost of the additional interests in the subsidiary acquired and the share of the assets and liabilities acquired from the non-controlling interests is reflected as premium arising from the acquisition of the non-controlling interests.499 2.575.424. The reserve is made up of the cumulative value of services received from employees recorded over the vesting period commencing from the grant date of equity-settled share options. 18.603 20.735) 212.703.419 585.625 Natural Gas Vehicle (“NGV”) related business Sales of manufactured goods Tray recycling services Plastic scrap recovery 2.

the Group received a 12% cash grant on the first $2. the Singapore Finance Minister announced the introduction of a Jobs Credit Scheme (“Scheme”).207) (8.835 15.494 403.500 of each month’s wages for each employee on their Central Provident Fund payroll.046 187.761) Gain on disposal of property.050) (35.666) In 2009.515.368 51.672. During the financial year ended 30 June 2010.049 1. (b) Other operating expenses comprises the following: Group 2011 $ 2010 $ (Reclassified) 12.397 543 52.214) (51.831) (230.797) (101.423 2.639 714.258.000) (6.806) – (35.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 19.237 12.891) – (459.037 175.066) (163.463 Allowance for doubtful debts (non-trade) Stocks written off Foreign exchange loss Allowance for doubtful debts (trade) Allowance for stocks obsolescence Write off of doubtful debts Fixed assets written off Provision for warranty Others 3.393 – 60. The Scheme ceased with the final payment in June 2010.253 – 1.294 under the Scheme.797 41.294) (836.441) (2. the Group received its grant income of $35.885 Annual Report 2011 73 . Other operating (income)/expenses (a) Other operating income comprises the following: Group 2011 $ 2010 $ (Reclassified) (13.480) – (73. plant and equipment Write back of allowance for doubtful debts Write back of allowance for stocks obsolescence Gain on disposal of subsidiaries Write back of provision of warranty Sales of scrap Waiver of payables Claim from insurance Jobs credit (91. Under the Scheme.084) (262.384 248.266) – (221.453 123.

bank overdrafts .789.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 20. Financial expenses/(income) Group 2011 $ Financial expenses Interest expense on: .118 164.699 695.late interest charges .687 2010 $ 74 Asian Micro Holdings Limited .873 2.783 5.563 125.267 16.851.910 – 1.590) 14 40.835 91.bills payable to banks .879 – 21.704 19. plant and equipment 3.469 528.153 2010 $ 10.637 67.943 – 79.943 219.others Bank charges 2.220 47.finance leases .short term bank loans .601 166.290) (3.225 110.146.978 220.562.341 Financial income Interest income from .333 671.288 16.124 46. 21. plant and equipment Operating lease expense Salaries and bonuses Central Provident Fund contributions Share-based payments Other personnel expenses Impairment of property.662 639.287 Included in the above is compensation of key management personnel as disclosed in Note 27(b).099 44.fixed deposits and bank balances (3. Loss before taxation The following items have been included in arriving at loss before tax from operations: Group 2011 $ Cost of inventories sold Depreciation of property.524 21.094 499.566 2.

NOTES TO THE FINANCIAL STATEMENTS
30 June 2011 22. Directors’ remuneration
The number of directors of the Company whose emoluments fall within the following bands: 2011 $ $500,000 and above $250,000 to $499,999 Below $250,000 – 2 6* 8
* Includes directors resigned during the year.

2010 $ 1 1 5* 7

23.

Taxation
Major components of income tax expense for the year ended 30 June were: Group 2011 $ Current income tax - (over)/under provision in respect of prior years 2010 $

(211,103)

70,621

A reconciliation of the tax expense and the product of accounting profit multiplied by the applicable tax rate is as follows: Group 2011 $ Loss before tax Tax at the applicable tax rate of 17% Tax effect of expenses not deductible for tax purposes Tax effect on income not subject to tax (Over)/under provision of tax in respect of prior year Utilisation of deferred tax assets previously not recognised Deferred tax assets not recognised Effects of different tax rates in other countries Tax expense (4,640,163) (788,828) 519,957 (47,466) (211,103) – 688,744 (372,407) (211,103) 2010 $ (3,011,037) (511,876) 217,695 (40,068) 70,621 (31,804) 431,342 (65,289) 70,621

Annual Report 2011

75

NOTES TO THE FINANCIAL STATEMENTS
30 June 2011 23. Taxation (cont’d)
Deferred taxation at 30 June relate to the following: Group 2011 $ Deferred tax liabilities - excess of net book value over tax written down value of fixed assets Deferred tax liabilities The Group As at 30 June 2011, the Group has unutilised tax losses and unutilised capital allowances of approximately $19,961,000 (2010: $15,909,000) and $28,000 (2010: $28,000), which are available for offset against future taxable profits, subject to agreement by the tax authorities and compliance with certain provisions of the tax legislation of the respective countries in which the Group operates. No deferred tax is recognised on these losses and unutilised capital allowances in accordance with the accounting policy as set out in Note 2.24(ii). Management intends to transfer unabsorbed capital allowances and trade losses of $193,000 (2010: $ Nil) from a subsidiary to a certain other subsidiary under the group relief system, subject to compliance with relevant rules and procedures and agreement of the Inland Revenue Authority of Singapore. 2010 $ 2011 $ Company 2010 $

(585) (585)

(581) (581)

(585) (585)

(581) (581)

24.

Loss per share
Basic loss per share is calculated by dividing the loss for the year, net of tax, attributable to equity holders of the parent by the weighted average number of ordinary shares outstanding during the financial year. Diluted loss per share amounts is calculated by dividing the loss for the year, net of tax, attributable to owners of the parent by the weighted average number of ordinary shares outstanding during the year plus weighted average number of ordinary shares that would be issued on the conversion of all the dilution potential shares into ordinary shares. The following table reflects the loss and share data used in the computation of basic and diluted loss per share for the years ended 30 June: Group 2011 $ Net loss attributable to owners of the parent used in the computation of basic and diluted loss per share Weighted average number of ordinary shares for basic and diluted loss per share 2010 $

(3,896,590)

(3,023,458)

414,275,975

360,690,124

For the year ended 30 June 2011, 33,957,000 (2010: 22,307,000) of share options granted to employees under the existing employee share option scheme have not been included in the calculation of diluted loss per share because they are anti-dilutive for the current financial year presented.

76

Asian Micro Holdings Limited

NOTES TO THE FINANCIAL STATEMENTS
30 June 2011 25. Employee benefits
The Company has 2 employee share option schemes, Asian Micro Holdings Limited Employees’ Share Option Scheme (“the ESOS 2001”), and Asian Micro Holdings Limited Employees’ Share Option Scheme 2010 (“the ESOS 2010”) to confirmed staff. Asian Micro Holdings Limited Employees’ Share Option Scheme (“the ESOS 2001”) The exercise price of the options is set above the average market price for the 5 consecutive trading days immediately preceding the offering date of the option. The options may be exercisable immediately or at any time from 1 to 3 years beginning on the first anniversary of the date of grant up to 28 September 2011. Options granted are cancelled when the option holder ceases to be under full time employment of the Company or any corporation in the Group subject to certain exceptions at the discretion of the Company. There are no cash settlement alternatives. There has been no modification to the scheme during both 2011 and 2010. Asian Micro Holdings Limited Employees’ Share Option Scheme (2010) (“the ESOS 2010”) The exercise price of the options is set at the average market price for the 5 consecutive trading days immediately preceding the offering date of the option. The options may be exercisable immediately or at any time from 1 to 10 years beginning on the first anniversary of the date of grant up to 28 October 2020. Options granted are cancelled when the option holder ceases to be under full time employment of the Company or any corporation in the Group subject to certain exceptions at the discretion of the Company. There are no cash settlement alternatives. There has been no modification to the scheme during the year. Information with respect to the number of options granted under both schemes is as follows: Balance at 1 July 2010 Options issued during the year Options forfeited during the year Options exercised during the year Balance at 30 June 2011

Date granted ESOS 2001 October 2001

Option exercise period

Exercise price

October 2002 September 2011 November 2002 September 2011 May 2003 September 2011 June 2003 September 2011 August 2004 September 2011

$0.050

800,000

800,000

November 2001 May 2002

$0.060

152,000

152,000

$0.180

56,000

56,000

June 2002

$0.165

68,000

68,000

August 2003

$0.065

21,000

21,000

Annual Report 2011

77

000 – – – 550.000 14.000 – – – 230.000 Options issued during the year – Options forfeited during the year – Options exercised during the year – Balance at 30 June 2011 574.000 Date granted August 2003 Option exercise period August 2004 September 2011 October 2004 September 2011 October 2006 September 2011 May 2008 September 2011 June 2008 September 2011 June 2008 September 2011 July 2009 September 2011 September 2009 September 2011 December 2010 September 2011 Exercise price $0.450.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 25.090 2.307.000 – – – 200.015 – 25.050 50.105 200.050 675.000 – – – 2.090 525. Employee benefits (cont’d) Balance at 1 July 2010 574.000 ESOS 2010 November 2010 November 2011 November 2020 $0.000 September 2008 December 2009 $0.000) – 19.000) (7.000 22.760.000 – – – 525.507.000 – – – 675.000) – – 7.000.000 July 2008 $0.800.000 – – – 50.960.070 October 2003 October 2005 May 2007 $0.000 78 Asian Micro Holdings Limited .000 $0.000 $0.646.000 $0.800.090 550.030 15.000 (6.100 230.000 June 2007 $0.000 June 2007 $0.646.450.000 – – (7.

000 (3. 2011 ESOS 2001 Outstanding at beginning of year Granted during the year Forfeited during the year Outstanding at end of year ESOS 2010 Granted during the year (3) Forfeited during the year Outstanding at end of year (1) WAEP($) 2011 No.000 – (7.800.000 0.5 0.000 0. The weighted average fair value of options granted during the year was $0.015.538.03 to $0.000 (6. 2010 WAEP($) 2010 (1) 22.08 0.02 0.04 (2) 25. The exercise price for options outstanding at the end of the year was $0.06 9.015. These options have not been subsequently modified and therefore do not need to be accounted for in accordance with FRS102.8 0.000) (4) 0.307.02 – – – – – – 19.000 Included within these balances are equity-settled options that were not recognised in accordance with FRS102 as these equity-settled options were granted on or before 22 November 2002. which may also not necessarily be the actual outcome.6 5. The weighted average remaining contractual life for these options approximates 3 months (2010: 1 year). (2) (3) (4) Fair value of share options granted The fair value of share options as at the date of grant is estimated using the Binomial Option Pricing Model.03 0.450.000) 22.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 25.0 121 1.03 0.02 2010 0. taking into account the terms and conditions upon which the options were granted.000. No.04 – 0.02 The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur.631. The expected volatility reflects the assumption that the historical volatility is indicative of future trends.400. share options during the year.507.0 60 5.08 0.18 (2010: $0.03 to $0. Annual Report 2011 79 .02 0.307.450. The inputs to the model used for the years ended 30 June 2011 and 30 June 2010 are shown below. Employee benefits (cont’d) Movement of share options during the year The following table illustrates the number and weighted average exercise prices (WAEP) of.000) 14. The range of exercise prices for options outstanding at the end of the year was $0.18). The weighted average remaining contractual life for these options is 9 years.000 16.0 1. and movements in. 2011 Dividend yield % (year) Expected volatility (%) Risk-free interest rate (%) Expected life of option (years) Share price ($) 0.

455 2010 $ 683.873).239 – 234.239 Present value of payments 2010 $ 129. Commitments and contingencies (a) Operating lease commitments – as lessee The Group leases certain properties under lease agreements. Future minimum lease payments under finance leases together with the present value of the net minimum lease payments are as follows: Group Minimum lease payments 2011 $ Not later than one year Later than one year but not later than five years Total minimum lease payments Less: Amounts representing finance charges Present value of minimum lease payments 87.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 26.622) 234.46%) per annum.19% (2010: 4.986 1.187 183.951 271.138 (29.566 (2010: $671.861 (21.861) 241. The average discount rate implicit in the leases is 7.401.884 168.239 80 Asian Micro Holdings Limited .393 241. There are no restrictions placed upon the Group by entering into these leases. Future minimum lease payments under non-cancellable operating leases as at 30 June are as follows: Group 2011 $ Within one year After one year but not more than five years 569.122 The Group has not entered into any non-cancellable leases as lessee. There are no restrictions placed upon the Group or the Company by entering into these leases.277 – 241.136 717. (b) Finance lease commitments The Group has finance leases for certain items of machinery. Operating lease payments recognised in the consolidated profit or loss during the year amounted to $639.277 Present value of payments 2011 $ 72.424 104.048 113.277 Minimum lease payments 2010 $ 142.813 255. These leases have an average life of between 1 and 5 years with no renewal option or escalation clauses included in the contracts.155 105. Rental income is generated on an adhoc basis.815 234. equipment and motor vehicles (Note 3).300 674.

. Ltd.928 26.912 Present value of payments 2010 $ 6. The following are the significant intercompany transactions entered into by the Group with its related parties: (a) Sales and purchases of goods and services Group 2011 $ Rental expense paid/payable to affiliated companies * Sale of goods 419. the Company had given undertakings to certain subsidiaries to provide financial support to enable them to operate as going concerns and to meet their obligations for at least 12 months from the respective date of their directors’ report.028 (3.673 * The Group has entered into contracts with affiliated companies.555 22.928 17.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 26. 27.382 97.960 11. Asian Micro Industries (Thailand) Co.184 15.925 29. Related party disclosures An entity or individual is considered a related party of the Group for the purposes of the financial statements if: (i) it possesses the ability (directly or indirectly) to control or exercise significant influence over the operating and financial decisions of the Group or vice versa.480 As at 30 June 2011.100 26.035 2010 $ 489.480 – 29.740 22.476) 29.956 (5. Ultraline Technology Pte Ltd. all three companies owned by two directors. American Converters Industries Pte Ltd and Ultraline Holdings (Thailand) Co. for the lease of factories on a time cost reimbursement basis. or (ii) it is subject to common control or common significant influence.028 34. Ltd. Commitments and contingencies (cont’d) (b) Finance lease commitments (cont’d) Company Present Minimum value of lease payments payments 2011 2010 $ $ 7.480 Minimum lease payments 2011 $ Not later than one year Later than one year but not later than five years Total minimum lease payments Less: Amounts representing finance charges Present value of minimum lease payments (c) Continuing financial support 8.924 8. Annual Report 2011 81 .924 – 22.116) 22.

397 1.000 (2010: $2. The Group’s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure. For other financial assets (including cash and cash equivalents).085 428. interest rate risk and foreign currency risk. 82 Asian Micro Holdings Limited .952 28.Other key management personnel 1. The Audit Committee provides independent oversight to the effectiveness of the risk management process. There has been no change to the Group’s exposure to these financial risks or the manner to which it manages and unearned the risks. liquidity risk.591 1.983 89.676 1.100.186. the Group’s and the Company’s maximum exposure to credit risk is represented by: – – the carrying amount of each class of financial assets recognised in the balance sheets and a nominal amount of $2.Directors of the Company . Trade and other receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant. The following sections provide details regarding the Group’s and Company’s exposure to the abovementioned financial risks and the objectives.561.427.494 47. The key financial risks include credit risk. The Board of directors reviews and agrees policies and procedures for the management of these risks. policies and processes for the management of these risks. Related party disclosures (cont’d) (b) Compensation of key management personnel Group 2011 $ Short-term employee benefits Central provident fund contributions Share-based payments Total compensation paid to key management personnel Comprise amounts for: .000) relating to a corporate guarantee provided by the Company to a bank on a subsidiary’s bank facility. the Group and the Company minimise credit risk by dealing exclusively with high credit rating counterparties.257 1.540.237 1.201 87.363.715 443. Credit risk Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations.296 87.561.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 27.363.676 2010 $ 1. Financial risk management objectives and policies The Group and the Company is exposed to financial risks arising from its operations and the use of financial instruments. The Group trades only with recognised and creditworthy third parties.118.952 935. Exposure to credit risk At the balance sheet date. The Group’s and the Company’s exposure to credit risk arises primarily from trade and other receivables.

205 – 1.541 1.723.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 28. Financial assets that are neither past due nor impaired Trade and other receivables that are neither past due nor impaired are creditworthy debtors with good payment record with the Group. approximately 38% (2010: 28%) of the Group’s trade receivables were due from 3 major customers.361. that are neither past due nor impaired. Liquidity risk Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations due to shortage of funds.166 84 16 – 100 1.990 79 15 6 100 % of total $ 2010 % of total At the balance sheet date. The credit risk concentration profile of the Group’s trade receivables at the balance sheet date is as follows: Group 2011 $ By country: Singapore Thailand People’s Republic of China 860.029. The Group’s and the Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities.974 109. Financial risk management objectives and policies (cont’d) Credit risk (cont’d) Credit risk concentration profile The Group determines concentrations of credit risk by monitoring the country and industry sector profile of its trade receivables on an on-going basis. Financial assets that are either past due or impaired Information regarding financial assets that are either past due or impaired is disclosed in Note 7 (Trade and other receivables). are placed with or entered into with reputable financial institutions or companies with high credit ratings and no history of default.475 252. Cash and bank balances. Annual Report 2011 83 .961 168. The Group’s and the Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities.

Financial risk management objectives and policies (cont’d) Liquidity risk (cont’d) The table below summarises the maturity profile of the Group’s and the Company’s financial assets and liabilities at the balance sheet date based on contractual undiscounted repayment obligations.451 8.001 784.952) – – – – 183.903) 1.544 1 to 5 years $ Over 5 years $ Total $ 84 Asian Micro Holdings Limited .828 455.100) – – – – – – 149.581.074 271.833 87.727) 4.777.647 920.666 955 33.100 (17.496 (1.074 271.025.627) – – – 17.161.333 427.244 (2.187 – 4.666 955 33.335 2.488 582.636.443.420.144 (2.335 2.333 427.065.517 – – – – – – – – – – 4.828 455.561 25.371 108.277 1.447 (2.488 582.000 4.636.371 108.561 25.100 17.833 271.647 920.277 1.766 2.451 26.138 300.509.000 483.443.544 – – – – – – – – – – 1.517 1.951 300.127. 2011 1 year or less $ Group Financial assets Trade and other receivables Due from related parties (non-trade) Fixed deposits Cash and bank balances Total undiscounted financial assets Financial liabilities Trade and other payables Accrued expenses (non-trade) Due to related parties Bills payable to bank Obligations under finance lease Loan from related party (non-trade) Total undiscounted financial liabilities Total net undiscounted financial liabilities Company Financial assets Trade and other receivables Due from related parties (non-trade) Fixed deposits Cash and bank balances Total undiscounted financial assets Financial liabilities Trade and other payables Accrued expenses Due to subsidiaries (non-trade) Obligations under finance lease Total undiscounted financial liabilities Total net undiscounted financial liabilities 149.951 (483.766 2.420.001 784.951) – – – – – – – – 1.928 2.028 2.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 28.144.178.777.

956 1. Financial risk management objectives and policies (cont’d) Liquidity risk (cont’d) 2010 1 year or less $ Group Financial assets Trade and other receivables Due from related parties (non-trade) Fixed deposits Cash and bank balances Total undiscounted financial assets Financial liabilities Trade and other payables Accrued expenses Loan from directors (non-trade) Due to related parties (non-trade) Bills payable to bank Obligations under finance lease Total undiscounted financial liabilities Total net undiscounted financial liabilities Company Financial assets Trade and other receivables Due from subsidiaries (non-trade) Fixed deposits Cash and bank balances Total undiscounted financial assets Financial liabilities Trade and other payables Accrued expenses Obligations under finance lease Total undiscounted financial liabilities Total net undiscounted financial liabilities 16.151 8.535 – – – – – – – – – – 2.543.056 (741.431 8.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 28.365.314 5.028 (26.472 161.519 (2.085 76.048 5.550 623.861 5.928 1.762.136 376.050.129.427) – – 26.028 26.984) – – – – – 113.972 1.136 376.876.535 1 to 5 years $ Over 5 years $ Total $ 2.654 400.339.472 161.353 255.813 113.286 1.601 – – – – – – – – – – 16.601 2.550 623.972 1.654 400.111.913.314 5.431 34.332 (2.113 3.151 8.353 142.813 (113.813) – – – – – – – – 2.028 (715.669 1.706 916.543.050.669 1.228.332.455) Annual Report 2011 85 .797) 200.218.129.228.028) – – – – – 200.706 916.815 522.113 3.286 1.111.085 76.913.815 522.

At the balance sheet date. The Group is also exposed to currency translation risk arising from its net investments in foreign operations.weakened 12% (2010: 3%) RMB . The Group and the Company also hold cash denominated in foreign currencies for working capital purposes. The Group’s and the Company’s policy is to manage interest cost using fixed rate debts. PRC and Thailand are not hedged. THB.608. with all other variables held constant. Financial risk management objectives and policies (cont’d) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of the Group’s and the Company’s financial instruments will fluctuate because of changes in market interest rates.S Dollars (USD).547 (2010: $303.716) respectively. primarily SGD. Foreign currency risk The Group has transactional currency exposures arising from sales or purchases that are denominated in a currency other than the respective functional currencies of Group entities. trade payables and bills payable to bank denominated in foreign currency balances (mainly in USD) amounted to $433. $255. trade receivables.631 and $759.strengthened 8% (2010: 3%) . At the end of the reporting period. such foreign currency balances are mainly in USD. trade payables and bills payable to bank denominated in foreign currency. Sensitivity analysis for foreign currency risk The following table demonstrates the sensitivity to a reasonably possible change in the USD and RMB.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 28. The Group has trade receivables. $122.116. Approximately 37% (2010: 24%) of the Group’s sales are denominated in foreign currencies whilst 54% (2010: 14%) of purchases are denominated in the respective functional currencies of the Group entities. The Group’s and the Company’s exposure to interest rate risk arises primarily from their obligations under finance lease. including Malaysia.877 and $354.weakened 8% (2010: 3%) (22) 22 – – 9 (9) (24) 24 86 Asian Micro Holdings Limited . The Group’s net investments in Malaysia.strengthened 12% (2010: 3%) . USD and Renminbi (RMB). Group Loss net of tax 2011 2010 $’000 $’000 USD . of the Group’s loss net of tax. The foreign currencies in which these transactions are denominated are mainly U. People’s Republic of China (“PRC”) and Thailand.

Fair value of financial instruments (a) Fair value of financial instruments that are carried at fair value Fair value hierarchy The Group classifies fair value measurement using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.074 Aggregate fair value 2011 2010 $ $ Annual Report 2011 87 . obligations under finance leases (Note 12) and bills payable to bank (Note 11). loan from directors (Note 8). due to directors/related parties (Note 8). either directly (i. as prices) or indirectly (i.e. 168. derived from prices). The carrying amounts of these financial assets and liabilities are reasonable approximation of fair values. trade and other payables (Note 10).393 104. and Level 3 – Inputs for the asset or liability that are not based on observable market data (unobservable inputs) The Group has not classified any financial instrument under Level 1 and Level 2.815 157.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 29. due from subsidiaries/related parties (Note 8). either due to their short-term nature or that they are floating rate instruments that are re-priced to market interest rates on or near the balance sheet date.. (c) Fair value of financial instruments by classes that are not carried at fair value and whose carrying amounts are not reasonable approximation of fair value Total carrying amount 2011 2010 $ $ Group Finance lease obligations repayable after 1 year but within 5 years Determination of fair value The fair value has been determined using discounted estimated cash flows. The fair value hierarchy has the following levels: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability. The discount rates used are the current market incremental lending rates for similar types of leasing arrangements at the balance sheet date.327 94.. (b) Fair value of financial instruments by classes that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value Current trade and other receivables (Note 7). accrued expenses (Note 13).e.

88 Asian Micro Holdings Limited .901 4. No changes were made in the objectives.476.996.286 1. the Group may issue new shares.239 – (1.228.777.647 920. the Group is organised into business units based on their product and services.913.654 400.980 6. and has five reportable operating segments as follows: Tray recycling Tray recycling segment provides services of recycling and precision cleaning of packaging trays and media/ disk cassettes used in the hard disk drive and semiconductor industries.353 234. Group 2011 $ Trade and other payables (Note 10) Accrued expenses (Note 13) Loan from directors (Note 8) Provision (Note 14) Due to related parties (Note 8) Bills payable to bank (Note 11) Obligations under finance leases (Note 12) Loan from related party (non-current) (Note 8) Less: Cash and bank balances (Note 9) Net debt Equity attributable to the equity holders of the parent Capital and net debt Gearing ratio 1.001 – – 784.833 241.472 51.085) 4.840) 3.647 76% 2010 $ 2.479.000 (698. which is net debt divided by total capital plus net debt.422 1.746 1.402 69% 31.977. This segment also includes precision parts cleaning and parts visual inspection as well as clean room laundry cleaning services.780.196. ESD bags and aluminum moisture barrier bags for the electronics and hard disk drive industries.797 161.427. To maintain or adjust the capital structure. Manufacturing Manufacturing segment refers to manufacturing of clean room grade packaging products such as LDPE/ HDPE bags. The Group manages its capital structure and makes adjustments to it. Capital management The primary objective of the Group’s capital management is to ensure that it maintains adequate funds to support its business activities and to continue as a going concern. policies or processes during the years ended 30 June 2011 and 30 June 2010. The Group monitors capital using a gearing ratio. in light of changes in economic conditions. Corporate The corporate segment is involved in Group-level corporate services. Segment information For management purposes.706 916.828 455.277 300.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 30.

NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 31. the segment provides services for the conversion of petrol vehicles to run on Bi-Fuel system where natural gas can be used to replace petrol and services for the conversion of heavy duty diesel vehicles using Dual Diesel Fuel (“DDF”) system to cut down the usage of diesel for diesel vehicles.262). Sales to external customers disclosed in geographical segments are based on the geographical location of its customers.140. is measured differently from operating profit or loss in the consolidated financial statements. Segment performance is evaluated based on operating profit or loss which in certain respects.924. Geographical information The Group’s geographical information are based on the location of the Group’s assets.446.487 (2010: $10. Group financing (including finance costs) and income taxes are managed on a group basis and are not allocated to operating segments. Except as indicated above. Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Annual Report 2011 89 . Revenues from one major customer in the NGV related business segment amounted to $2.730). Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties. no operating segments have been aggregated to form the above reportable operating segments. For vehicle conversion services.235.886 (2010: $1. Information about major customers Revenues from one major customer in the tray recycling segment amounted to $1. Segment information (cont’d) Natural Gas Vehicle (“NGV”) related business NGV related business segment refers to the trading of NGV related products such as bi-fuel conversion kits and cylinders and provision of vehicle conversion services. as explained in the table below.

050) 2.483 4.973 – – Total revenue 3.721 – – 1.576) (67) 3 20.605) (1.011) (71) (3.014 251 2.933) 8.483 4.650 – 1.253) (1.901) – (1.528) (1.911) (126) 4 2.429) 22 (3.640) 211 (4.772) (1. Segment information (cont’d) Segments NOTES TO THE FINANCIAL STATEMENTS Asian Micro Holdings Limited – (4.082) The following table presents revenue and results information regarding the Group’s reportable operating segments for the financial years ended 30 June 2011 and 2010 (in $’000).596 288 – 49 (1.712 183 635 2.933) 178 8.650 1.973 Segment results Financial expenses Financial income Share of results of associated companies (1.424 183 586 2.373) Loss before taxation Tax expense Loss for the year .575 (4.895 12. Tray recycling 2011 2010 $ $ Segment revenue Sales to external customers Inter-segment sales 3.90 30 June 2011 Manufacturing 2011 2010 $ $ Plastic waste recycling 2011 2010 $ $ Elimination 2011 2010 $ $ Natural Gas Vehicle (“NGV”) related business 2011 2010 $ $ Corporate and others 2011 2010 $ $ Consolidated 2011 2010 $ $ 2.575 – 20.265 (28) 587 27 – (1.704 (2.721 1.596 – (1.704 – 31.901) 330 (1.895 – 12.

990 (34.327 11.029 357 10 1.392 11.154 91 .704 8.755 Total liabilities 23 326 Capital expenditure Depreciation Impairment losses of property.728) 3.275 5.275 20.750 – 628 10.499 998 4.673 13.130 2.319 4.580 3.361 4.449 7.31.453) (15.187 1.563 2.575 5.853 Unallocated liabilities 23.319 8. for the years ended 30 June 2011 and 2010 (in $’000).153 1. Malaysia 2010 2009 $ $ Thailand 2011 2010 $ $ PRC 2011 $ 2010 $ Others 2011 2010 $ $ Total 2011 $ 2010 $ Singapore 2011 2010 $ $ Sales to external customer – 1 3 – 7.100 6.389 1. Segment information (cont’d) Segments (cont’d) Tray recycling 2011 2010 $ $ 1.768 Total assets Segment liabilities 20.577 2.118 1.397 6.819) 5.591 3.103 695 Manufacturing 2011 2010 $ $ Plastic waste recycling 2011 2010 $ $ Elimination 2011 2010 $ $ Consolidated 2011 2010 $ $ Natural Gas Vehicle (“NGV”) related business 2011 2010 $ $ Corporate and others 2011 2010 $ $ Segment assets 6.452 – 1.065 2.063) (35.133 – – – – 8.756 1.005 4. plant and equipment – – – – 166 52 – – 246 482 – 528 – (52) 166 528 The following table presents revenue and assets information based on the geographical location of customers and assets.319 NOTES TO THE FINANCIAL STATEMENTS Annual Report 2011 30 June 2011 Assets 3.497 98 29 16 – 51 220 172 5 – 70 – – 462 842 1 38 (47) – (173) (26) 537 500 8.336 (9.275 2. respectively.059 1.

Comparatives The following comparative figures in the statement of comprehensive income have been reclassified to allow a more appropriate presentation and better reflect the nature of the transactions. Events occurring after the reporting period On 4 July 2011.608.NOTES TO THE FINANCIAL STATEMENTS 30 June 2011 32. Details of comparative figures reclassified in the statement of comprehensive income for the year ended 30 June 2010 are as follows: Group As As previously reclassified classified $ $ Revenue Other operating income Other operating expenses 20.258. Authorisation of financial statements The financial statements for the year ended 30 June 2011 were authorised for issue in accordance with a resolution of the directors on 7 October 2011.761 (1.506 (1. 34. pursuant to the Asian Micro Employees Share Option Scheme 2010 (“the ESOS 2010”) to employees of the Group.000 share options.01 for each option.169) 33.463) 20. 92 Asian Micro Holdings Limited .000 of the share options were granted to the directors of the Company. 3.586 896.000.233.625 836.703. the Company granted 5.400. with an exercise price of S$0.

043 ORDINARY SHARES 1 VOTE PER SHARE The Company does not hold any treasury shares.650.93 25.17 24.840.000 1.00 NO.000 2.000 3.001 & ABOVE TOTAL % 0.217 118.305.000 7.83 0. OF SHARES 1.000 2.00 TOP TWENTY SHAREHOLDERS AS AT 16 SEPTEMBER 2011 NAME OF SHAREHOLDERS LIM KEE LIEW @ VICTOR LIM LEONG LAI HENG LIN XIANGLONG WINCHESTER LEE DEH KHUAN KELVIN CHNG BOON KIAN LIN MEIJUAN SOPHIA AMERICAN CONVERTERS INDUSTRIES PTE LTD UNITED OVERSEAS BANK NOMINEES (PTE) LTD DBS NOMINEES PTE LTD TAN CHENG SOI FOO MEI YIEN JOANNE CHAN SZE MING DBS VICKERS SECURITIES (S) PTE LTD ZHANG JILEI CHOO CHEE KIONG TAY KIM CHAI JOHNSON CHERN SIANG SIN @ CHENG SIANG SIN PIYAWAT JIRAWATOPHAT LIM KEE HING WANG KAI YUEN NO.351.71 0.043 % 0.838.000 1.222 10.53 0.674.300 338.686 1.10 66. NO.000 327.06 100. Accordingly.591.000.000 7.72 100.481.49 2.71 36.54 0.69 1.846.756.311 29 4.STATISTICS OF SHAREHOLDINGS As at 16 September 2011 NO.142.35 0.000 2. OF SHARES 138.713.13 1.001 – 1.646. the Company has complied with Rule 723 of the Listing Manual.487.77 73.59 2.57 0. Annual Report 2011 93 .36 0.741.72 0.67 0. OF SHAREHOLDERS 4 2.43 0.000.54 0.000 1.550.000 1.43 0.46 0.000 2.000 1.866.000 3.000 9.000 – 10.65 32.58 0.521 463.000 2.591.416 % 29.664.33 70.36 0.000 2. OF SHARES ISSUED CLASS OF SHARES VOTING RIGHTS : : : 463.439 3.000.526.595.000 10.038. Section B: Rules of Catalist.00 2.883.000 114.760 11.688.000 2.000.38% of the Company’s shares are held in the hands of public.030 SIZE OF SHAREHOLDINGS 1 – 999 1.

Lim Kee Liew @ Victor Lim's deemed interest arose through 496.218. Lim Kee Liew @ Victor Lim.761 27. He is also deemed to have an interest in the 119. Leong Lai Heng each own 50% of the entire issued and paid-up share capital of Ultraline Technology (S) Pte Ltd and American Converters Industries Pte Ltd. (b) 94 Asian Micro Holdings Limited . Leong Lai Heng's deemed interest arose through 760. Leong Lai Heng.449.406.866.760 29.439 shares held by American Converters Industries Pte Ltd. Lim Kee Liew @ Victor Lim and Ms.760 shares held by his spouse.449.59% DEEMED INTEREST 125. Ms.105 shares held by Ultraline Technology (S) Pte Ltd and 3. Ms.217 118.105 shares held by Ultraline Technology (S) Pte Ltd and 3.SHAREHOLDERS’ INFORMATION As at 16 September 2011 SUBSTANTIAL SHAREHOLDERS (As recorded in the Register of Substantial Shareholders) NAME OF SHAREHOLDER LIM KEE LIEW @ VICTOR LIM LEONG LAI HENG (a) (b) DIRECT INTEREST 138.439 shares held by American Converters Industries Pte Ltd.217 shares held by her spouse.741. Mr.304 145.237. * Mr.35% Notes: (a) Mr.866. She is also deemed to have an interest in the 139. 1.01% 31.646. 1.000 shares held by United Overseas Bank Nominees (Private) Limited.000 shares held by DBS Nominees (Private) Limited.93% 25.312.

“Instruments”) that might or would require shares to be issued. the Directors of the Company be authorised and empowered to: (a) (i) (ii) issue shares in the Company (“shares”) whether by way of rights. Mr. warrants. Mr. 50 and Rule 806 of Section B of the Singapore Exchange Securities Trading Limited Listing Manual: Rules of Catalist (the “Catalist Rules”). Teo will.m. 10 Tuas West Drive. Ng Chee Wee (Retiring under Article 88) Chue Wai Tat (Retiring under Article 88) Lin Xianglong Winchester (Retiring under Article 88) Teo Kio Choon @ Chang Chiaw Choon (Retiring under Article 89) (Resolution (Resolution (Resolution (Resolution 2) 3) 4) 5) 2. debentures or other instruments convertible into shares. Nominating Committee and Remuneration Committee and will be considered independent. To receive and adopt the Directors’ Report and the Audited Accounts of the Company for the year ended 30 June 2011 together with the Auditors’ Report thereon. and/or make or grant offers.23 for the year ended 30 June 2011. 4.840). Authority to issue shares That pursuant to Section 161 of the Companies Act. Mr. remain as Chairman of Nominating Committee and a member of the Audit Committee and Remuneration Committee and will be considered independent.NOTICE OF ANNUAL GENERAL MEETING NOTICE IS HEREBY GIVEN that the Annual General Meeting of Asian Micro Holdings Limited (“the Company”) will be held at Raffles Marina. Ng and Mr.663. Mr. To approve the payment of Directors’ fees of S$50. 5. (Resolution 1) To re-elect the following Directors of the Company retiring pursuant to Articles 88 and 89 of the Articles of Association of the Company: (a) (b) (c) (d) Mr. (2010: S$51. 3. to pass the following resolutions as Ordinary Resolutions. including but not limited to the creation and issue of (as well as adjustments to) options. Lin are Executive Directors of the Company.00 a. remain as a member of the Audit Committee. agreements or options (collectively. Chue will. (Resolution 7) To transact any other ordinary business which may properly be transacted at an Annual General Meeting. and (b) (notwithstanding the authority conferred by this Resolution may have ceased to be in force) issue shares in pursuance of any Instruments made or granted by the Directors of the Company while this Resolution was in force. Mr. for the following purposes: AS ORDINARY BUSINESS 1. upon re-election as a Director of the Company. Mr. Singapore 638404 on Friday. AS SPECIAL BUSINESS To consider and if thought fit. upon re-election as a Director of the Company. at any time and upon such terms and conditions and for such purposes and to such persons as the Directors of the Company may in their absolute discretion deem fit. (Resolution 6) To re-appoint Messrs Ernst & Young LLP as the Auditors of the Company and to authorise the Directors of the Company to fix their remuneration. Cap. bonus or otherwise. Annual Report 2011 95 . with or without any modifications: 6. 28 October 2011 at 10.

(subject to such calculation as may be prescribed by the Singapore Exchange Securities Trading Limited) for the purpose of determining the aggregate number of shares that may be issued under sub-paragraph (1) above. 50. whether granted during the subsistence of this authority or otherwise. and any subsequent consolidation or subdivision of shares. [See Explanatory Note (ii)] (Resolution 9) By Order of the Board Lee Ellen Secretary Singapore. 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. the total number of issued shares shall be based on the total number of issued shares in the capital of the Company at the time of the passing of this Resolution. new shares arising from exercising share options or vesting of share awards which are outstanding or subsisting at the time of the passing of this Resolution. and unless revoked or varied by the Company in a general meeting. Cap. 13 October 2011 96 Asian Micro Holdings Limited . made or granted pursuant to this Resolution) to be issued pursuant to this Resolution shall not exceed one hundred per centum (100%) of the total number of issued shares in the capital of the Company (as calculated in accordance with sub-paragraph (2) below). after adjusting for: (a) (b) new shares arising from the conversion or exercise of any convertible securities. such authority 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 earlier. the Directors of the Company be authorised and empowered to offer and grant options under the Asian Micro Employees’ Share Option Scheme (“the Scheme”) and to 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 options granted by the Company under the Scheme. (2) (c) (3) in exercising the authority conferred by this Resolution. [See Explanatory Note (i)] (Resolution 8) (4) 7. of which the aggregate number of shares to be issued other than on a pro rata basis to shareholders of the Company shall not exceed fifty per centum (50%) of the total number of issued shares in the capital of the Company (as calculated in accordance with sub-paragraph (2) below). whichever is earlier. Authority to issue shares under the Asian Micro Employees’ Share Option Scheme 2010 That pursuant to Section 161 of the Companies Act.NOTICE OF ANNUAL GENERAL MEETING provided that: (1) the aggregate number of shares (including shares to be issued in pursuance of the Instruments. unless revoked or varied by the Company in a general meeting. the Company shall comply with the provisions of the Catalist Rules for the time being in force (unless such compliance has been waived by the Singapore Exchange Securities Trading Limited) and the Articles of Association of the Company. provided always that the aggregate number of additional ordinary shares to be issued pursuant to the Scheme shall not exceed twenty five per centum (25%) of the total number of issued shares in the capital of the Company from time to time and that such authority shall.

100% of the total number of issued shares in the capital of the Company. will empower the Directors of the Company. effective 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 or such authority is varied or revoked by the Company in a general meeting. or the date by which the next Annual General Meeting of the Company is required by law to be held or such authority is varied or revoked by the Company in a general meeting. Annual Report 2011 97 . in total. effective until the conclusion of the next Annual General Meeting of the Company. 2. The instrument appointing a proxy must be deposited at the registered office of the Company at 1 Tech Park Crescent. whichever is the earlier. of which up to 50% may be issued other than on a pro-rata basis to shareholders. up to a number not exceeding. A member entitled to attend and vote at the Annual General Meeting (the “Meeting”) is entitled to appoint not more than two proxies to attend and vote in his/her stead.NOTICE OF ANNUAL GENERAL MEETING Explanatory Notes: (i) The Ordinary Resolution 8 in item 6 above. make or grant Instruments convertible into shares and to issue shares pursuant to such Instruments. Singapore 638131 not less than 48 hours before the time appointed for holding the Meeting. (ii) Notes: 1. to issue shares in the Company pursuant to the exercise of options granted or to be granted under the Scheme up to a number not exceeding in aggregate (for the entire duration of the Scheme) twenty five per centum (25%) of the total number of issued shares in the capital of the Company from time to time. A proxy need not be a Member of the Company. to issue shares. whichever is the earlier. if passed. The Ordinary Resolution 9 in item 7 above. if passed. will empower the Directors of the Company.

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Proportion of Shareholdings No. they must submit their voting instructions to the CPF Approved Nominees within the time frame specified to enable them to vote on their behalf. CPF investors who wish to attend the Meeting as an observer must submit their requests through their CPF Approved Nominees within the time frame specified. of Shares Address % or failing the person. Teo Kio Choon @ Chang Chiaw Choon as a Director Approval of Directors’ fees amounting to S$50. hereby appoint: Name NRIC/Passport No. or either or both of the persons. of Shares For Against Dated this . For investors who have used their CPF monies to buy Asian Micro Holdings Limited’s shares. 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. If no specific direction as to voting is given or in the event of any other matter arising at the Meeting and at any adjournment thereof. Lin Xianglong Winchester as a Director Re-election of Mr. 2. of being a member/members of Asian Micro Holdings Limited. Ng Chee Wee as a Director Re-election of Mr. The authority herein includes the right to demand or to join in demanding a poll and to vote on a poll. If they also wish to vote. Common Seal of Corporate Shareholder No.23 Re-appointment of Messrs Ernst & Young LLP as Auditors Authority to issue new shares Authority to issue shares under the Asian Micro Employees’ Share Option Scheme 2010 day of 2011 Total number of Shares in: (a) CDP Register (b) Register of Members Signature of Shareholder(s) or.m. this Report is forwarded to them at the request of the CPF Approved Nominees and is sent solely FOR INFORMATION ONLY. (Please indicate your vote “For” or “Against” with a tick [√] within the box provided.00 a.199701052K) (Incorporated In The Republic of Singapore with limited liability) IMPORTANT: 1.663. Chue Wai Tat as a Director Re-election of Mr. of Shares Address % and/or (delete as appropriate) Name NRIC/Passport No. the proxy/proxies will vote or abstain from voting at his/her discretion. and at any adjournment thereof.ASIAN MICRO HOLDINGS LIMITED (Company Registration No. Proportion of Shareholdings No. referred to above. the Chairman of the Meeting as my/our proxy/ proxies to vote for me/us on my/our behalf at the Annual General Meeting (the “Meeting”) of the Company to be held on 28 October 2011 at 10. PROXY FORM (Please see notes overleaf before completing this Form) 3. 1 2 3 4 5 6 7 8 9 Resolutions relating to: Directors’ Report and Audited Accounts for the year ended 30 June 2011 Re-election of Mr. I/We direct my/our proxy/proxies to vote for or against the Resolutions proposed at the Meeting as indicated hereunder.) No. I/We.

Singapore 638131 not less than 48 hours before the time appointed for the Meeting. Where the instrument appointing a proxy or proxies is executed by an attorney on behalf of the appointor. General: The Company shall be entitled to reject the instrument appointing a proxy or proxies if it is incomplete. If no number is inserted. 4. or where the true intentions of the appointor are not ascertainable from the instructions of the appointor specified in the instrument appointing a proxy or proxies. The instrument appointing a proxy or proxies must be deposited at the registered office of the Company at 1 Tech Park Crescent. the instrument appointing a proxy or proxies shall be deemed to relate to all the Shares held by you. the Company may reject any instrument appointing a proxy or proxies lodged if the member. you should insert the aggregate number of Shares entered against your name in the Depository Register and registered in your name in the Register of Members. 2. If you have Shares entered against your name in the Depository Register and Shares registered in your name in the Register of Members. 3. you should insert that number of Shares. the appointments shall be invalid unless he/she specifies the proportion of his/her shareholding (expressed as a percentage of the whole) to be represented by each proxy. in accordance with Section 179 of the Companies Act. 7. Please insert the total number of Shares held by you. 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. the Company reserves the right to refuse to admit any person or persons appointed under the instrument of proxy to the Meeting. Any appointment of a proxy or proxies shall be deemed to be revoked if a member attends the meeting in person. A proxy need not be a member of the Company. you should insert that number of Shares. improperly completed or illegible. Chapter 50 of Singapore. Completion and return of this instrument appointing a proxy shall not preclude a member from attending and voting at the Meeting. the letter or power of attorney or a duly certified copy thereof must be lodged with the instrument. In addition. and in such event. Where a member appoints two proxies. it must be executed either under its seal or under the hand of an officer or attorney duly authorised. 6. A member of the Company entitled to attend and vote at a meeting of the Company is entitled to appoint one or two proxies to attend and vote in his/her stead. The instrument appointing a proxy or proxies must be under the hand of the appointor or of his attorney duly authorised in writing. . Chapter 50 of Singapore). If you have Shares registered in your name in the Register of Members. If you have Shares entered against your name in the Depository Register (as defined in Section 130A of the Companies Act. 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. in the case of Shares entered in the Depository Register. being the appointor. Where the instrument appointing a proxy or proxies is executed by a corporation. as certified by The Central Depository (Pte) Limited to the Company. 5.Notes: 1.

Tech Park Crescent.asianmicro. 1.com. Tuas Tech Park. Singapore 638131 Tel: 65 6862 7777 Fax: 65 6862 6277 Company Registration No.ASIAN MICRO HOLDINGS LIMITED No.sg Supplying CNG to: Manufacturing Industries Shipyard Industries Oil & Gas Industries Power Generation Test Grids . 199701052K www.