exv10w14



 








WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.

(COMPANY NO.:501396U)

(Incorporated in Malaysia)




FINANCIAL STATEMENTS

DECEMBER 31, 2003

(In Ringgit Malaysia)




 









 








Company No.: 501396 U




WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.

(Incorporated in Malaysia)



FINANCIAL STATEMENTS

DECEMBER 31, 2003



CONTENTS



	 	 	 	 	 
	 	 	PAGE(S)

	Directors’ report
	 	 	1-4	 
	Report of the auditors
	 	 	5	 
	Income statement
	 	 	6	 
	Balance sheet
	 	 	7-8	 
	Statement of changes in equity
	 	 	9	 
	Cash flow statement
	 	 	10-11	 
	Notes to the financial statements
	 	 	12-24	 
	Statement by directors
	 	 	25	 
	Declaration by the director primarily responsible for the financial
management of the Company
	 	 	25	 







 









 






Company No.: 501396 U




WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.

(Incorporated in Malaysia)



DIRECTORS’ REPORT




The directors of WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. have pleasure in
submitting their report and the audited financial statements of the Company
for the financial year ended December 31, 2003.



PRINCIPAL ACTIVITY




The Company is principally involved in manufacturing colour monitors. There
has been no significant change in the nature of the activity of the Company
during the financial year.



RESULTS OF OPERATIONS




	 	 	 	 	 
	

	 	
RM
	Net profit after tax for the year

	 	 	1,622,450	 
	

	 	 	
 	 







In the opinion of the directors, the results of operations of the Company
during the financial year have not been substantially affected by any item,
transaction or event of a material and unusual nature.



DIVIDENDS



No dividend has been paid or declared by the Company since the end of the
previous financial year. The directors also do not recommend any dividend
payment in respect of the current financial year.



RESERVES AND PROVISIONS



There were no material transfers to or from reserves or provisions during the
financial year other than those disclosed in the financial statements.



ISSUE OF SHARES AND DEBENTURES



The Company has not issued any new shares or debentures during the financial
year.





1









 








Company No.: 501396 U



SHARE OPTIONS



No options have been granted by the Company to any parties during the
financial year to take up unissued shares of the Company.



No shares have been issued during the financial year by virtue of the exercise
of any option to take up unissued shares of the Company. As of the end of the
financial year, there were no unissued shares of the Company under options.



OTHER FINANCIAL INFORMATION



Before the income statement and balance sheet of the Company were made out,
the directors took reasonable steps:




	(a)	 	to ascertain that proper action had been taken in relation to the writing
off of bad debts and
the making of allowance for doubtful debts, and have satisfied themselves
that there are no
known bad debts to be written off and no allowance for doubtful debts is
required; and
	 
	(b)	 	to ensure that any current assets which were unlikely to realise their
book values in the
ordinary course of business have been written down to their estimated
realisable values.





At the date of this report, the directors are not aware of any circumstances:




	(a)	 	which would require the writing off of bad debts or the setting up of
allowance for doubtful
debts in the financial statements of the Company; or
	 
	(b)	 	which would render the values attributed to current assets in the
financial statements of the
Company misleading; or
	 
	(c)	 	which have arisen which render adherence to the existing method of
valuation of assets or
liabilities of the Company misleading or inappropriate; or
	 
	(d)	 	not otherwise dealt with in this report or financial statements which
would render any amount
stated in the financial statements of the Company misleading.





At the date of this report, there does not exist:




	(a)	 	any charge on the assets of the Company which has arisen since the end of
the financial year
and secures the liability of any other person; or
	 
	(b)	 	any contingent liability of the Company which has arisen since the end of
the financial year.




2









 











Company No.: 501396 U




No contingent or other liability has become enforceable or is likely to become
enforceable within the period of twelve months after the end of the financial
year which, in the opinion of the directors, will or may substantially affect
the ability of the Company to meet its obligations as and when they fall due.



In the opinion of the directors, no item, transaction or event of a material
and unusual nature has arisen in the interval between the end of the financial
year and the date of this report which is likely to affect substantially the
results of operations of the Company for the succeeding financial year.



DIRECTORS



The following directors served on the Board of the Company since the date of the last report:



Song, Kow-Wen

Hsu, Che-Chen

Liou Jenq Lin

Anthony Spier

Larry S. Mahl

Cheruvallimalayil Daniel Alexander



DIRECTORS’ INTEREST




The shareholdings in the Company of those who were directors at the end of the
financial year, as recorded in the Register of Directors’ Shareholdings kept
by the Company under Section 134 of the Companies Act, 1965, are as follows:



	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	No. of ordinary shares of RM1 each

	 	 	Balance at	 	 	 	 	 	 	 	 	 	Balance at
	Shares in the Company
	 	1.1.2003
	 	Bought
	 	Sold
	 	31.12.2003

	Indirect interest:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Liou Jenq Lin
	 	 	1,254,000	 	 	 	—	 	 	 	—	 	 	 	1,254,000	 







DIRECTORS’ BENEFITS




Since the end of the previous financial year, none of the directors of the
Company has received or become entitled to receive any benefit by reason of a
contract made by the Company or a related corporation with the director or with
a firm of which he is a member, or with a company in which he has a substantial
financial interest.



During and at the end of the financial year, no arrangement subsisted to which
the Company was a party whereby directors of the Company might acquire
benefits by means of the acquisition of shares in, or debentures of, the
Company or any other body corporate.




3









 








Company No.: 501396 U




AUDITORS




The auditors, Messrs. Deloitte KassimChan, have indicated their willingness to
continue in office.



Signed on behalf of the Board

in accordance with a resolution of the Directors,



	 
	

	


	SONG, KOW-WEN








	 
	

	


	HSU, CHE-CHEN








Penang,

25 FEB 2004



4









 





Company No.: 501396 U









Deloitte KassimChan (AF 0080)

Chartered Accountants

4th Floor, Wisma Wang

251-A, Jalan Burma

10350 Penang

Malaysia



Tel : +60(4)2288255

Fax: +60(4)2288355

penang@deloitte.com.my



REPORT OF THE AUDITORS TO THE MEMBERS OF




WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.

(Incorporated in Malaysia)



We have audited the accompanying balance sheet as of December 31, 2003, and the related
statements of income, changes in equity and cash flows, for the year then ended. These financial
statements are the responsibility of the Company’s directors. Our responsibility is to express an
opinion on these financial statements based on our audit.



We conducted our audit in accordance with approved standards on auditing in
Malaysia. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by the directors, as well as evaluating the
overall financial statements presentation. We believe that our audit provides
a reasonable basis for our opinion.



In our opinion:




	(a)	 	the financial statements are properly drawn up in accordance with the
provisions of the
Companies Act, 1965 and the applicable approved accounting standards in
Malaysia so as to
give a true and fair view of:






	 	(i)	 	the state of affairs of the Company as of December 31,
2003 and of its results and cash flows for the year ended on that
date; and
	 
	 	(ii)	 	the matters required by Section 169 of the Act to be
dealt with in the financial statements; and






	(b)	 	the accounting and other records and the registers required by the Act to
be kept by the
Company have been properly kept in accordance with the provisions of the
Act.





	 
	

	


	DELOITTE KASSIMCHAN

	AF 0080

	Chartered Accountants

	 

	

	


	TAN BOON HOE

	1836/07/05(J)

	Partner

	February 25, 2004













5









 








Company No.: 501396 U



WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.

(Incorporated in Malaysia)



INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2003



	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Note
	 	2003
	 	2002

	 	 	 	 	 	 	RM	 	RM
	Revenue
	 	 	 	 	 	 	48,031,832	 	 	 	48,124,322	 
	Cost of sales
	 	 	 	 	 	 	(44,433,779	)	 	 	(44,908,383	)
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 
	Gross profit
	 	 	 	 	 	 	3,598,053	 	 	 	3,215,939	 
	Other operating income
	 	 	 	 	 	 	91,896	 	 	 	135,374	 
	Distribution costs
	 	 	 	 	 	 	(174,490	)	 	 	(74,916	)
	Administrative expenses
	 	 	 	 	 	 	(1,483,527	)	 	 	(1,202,414	)
	Other operating expenses
	 	 	 	 	 	 	(22,326	)	 	 	(5,482	)
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 
	Profit from operations
	 	 	 	 	 	 	2,009,606	 	 	 	2,068,501	 
	Finance costs
	 	 	 	 	 	 	(257,102	)	 	 	(156,734	)
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 
	Profit before tax
	 	 	4	 	 	 	1,752,504	 	 	 	1,911,767	 
	Income tax expense
	 	 	5	 	 	 	(130,054	)	 	 	(83,000	)
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 
	Net profit for the year
	 	 	 	 	 	 	1,622,450	 	 	 	1,828,767	 
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 







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





6









 








Company No.: 501396 U



WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.

(Incorporated in Malaysia)



BALANCE SHEET

AS OF DECEMBER 31,2003



	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Note
	 	2003
	 	2002

	 	 	 	 	 	 	RM	 	RM
	PROPERTY, PLANT AND EQUIPMENT
	 	 	6	 	 	 	1,495,697	 	 	 	1,504,140	 
	DEFERRED TAX ASSETS
	 	 	7	 	 	 	117,000	 	 	 	85,000	 
	CURRENT ASSETS
	 	 	 	 	 	 	 	 	 	 	 	 
	Inventories
	 	 	8	 	 	 	5,600,337	 	 	 	7,132,136	 
	Trade receivable
	 	 	9	 	 	 	16,681,855	 	 	 	17,668,691	 
	Other receivables and prepaid expenses
	 	 	10	 	 	 	54,417	 	 	 	70,275	 
	Cash and bank balances
	 	 	 	 	 	 	1,497,499	 	 	 	6,210,056	 
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 
	Total Current Assets
	 	 	 	 	 	 	23,834,108	 	 	 	31,081,158	 
	CURRENT LIABILITIES
	 	 	 	 	 	 	 	 	 	 	 	 
	Trade payables
	 	 	11	 	 	 	11,264,818	 	 	 	18,248,274	 
	Other payables and accrued expenses
	 	 	12	 	 	 	463,744	 	 	 	853,882	 
	Hire-purchase payable
	 	 	13	 	 	 	10,925	 	 	 	9,510	 
	Bank borrowings
	 	 	14	 	 	 	7,120,000	 	 	 	8,731,885	 
	Provision for tooling costs
	 	 	15	 	 	 	394,106	 	 	 	194,407	 
	Tax liability
	 	 	 	 	 	 	39,500	 	 	 	93,000	 
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 
	Total Current Liabilities
	 	 	 	 	 	 	19,293,093	 	 	 	28,130,958	 
	NET CURRENT ASSETS
	 	 	 	 	 	 	4,541,015	 	 	 	2,950,200	 
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 
	 
	 	 	 	 	 	 	6,153,712	 	 	 	4,539,340	 
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 







(FORWARD)





7









 








Company No.: 501396 U




WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.

(Incorporated in Malaysia)



BALANCE SHEET

AS OF DECEMBER 31, 2003



	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Note
	 	2003
	 	2002

	 	 	 	 	 	 	RM	 	RM
	SHARE CAPITAL
	 	 	16	 	 	 	2,508,000	 	 	 	2,508,000	 
	RETAINED PROFIT
	 	 	17	 	 	 	3,638,780	 	 	 	2,016,330	 
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 
	SHAREHOLDERS’ EQUITY
	 	 	 	 	 	 	6,146,780	 	 	 	4,524,330	 
	HIRE-PURCHASE PAYABLE
	 	 	13	 	 	 	6,932	 	 	 	15,010	 
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 
	 
	 	 	 	 	 	 	6,153,712	 	 	 	4,539,340	 
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 







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





8









 








Company No.: 501396 U




WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.

(Incorporated in Malaysia)



STATEMENT OF CHANGES IN EQUITY FOR THE

YEAR ENDED DECEMBER 31, 2003



	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Share Capital
	 	Retained Profit
	 	Total

	 	 	RM	 	RM	 	RM
	Balance as of January 1, 2002
	 	 	2,508,000	 	 	 	187,563	 	 	 	2,695,563	 
	Net profit for the year
	 	 	—	 	 	 	1,828,767	 	 	 	1,828,767	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 
	Balance as of December 31, 2002
	 	 	2,508,000	 	 	 	2,016,330	 	 	 	4,524,330	 
	Net profit for the year
	 	 	—	 	 	 	1,622,450	 	 	 	1,622,450	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 
	Balance as of December 31,2003
	 	 	2,508,000	 	 	 	3,638,780	 	 	 	6,146,780	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 







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




9









 








Company No.: 501396 U




WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.

(Incorporated in Malaysia)



CASH FLOW STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2003



	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	CASH FLOWS FROM OPERATING ACTIVITIES
	 	 	 	 	 	 	 	 
	Profit before tax
	 	 	1,752,504	 	 	 	1,911,767	 
	Adjustments for:
	 	 	 	 	 	 	 	 
	Depreciation of property, plant and equipment
	 	 	265,337	 	 	 	234,513	 
	Interest expenses
	 	 	257,102	 	 	 	156,734	 
	Provision for tooling costs
	 	 	222,999	 	 	 	196,059	 
	Allowance for slow moving inventories
	 	 	100,000	 	 	 	223,674	 
	Unrealised loss on foreign exchange
	 	 	4,836	 	 	 	552	 
	Interest income
	 	 	(5,091	)	 	 	(5,282	)
	 
	 	 	
 	 	 	 	
 	 
	Operating profit before working capital changes
	 	 	2,597,687	 	 	 	2,718,017	 
	(Increase)/ Decrease in:
	 	 	 	 	 	 	 	 
	Inventories
	 	 	1,431,799	 	 	 	(2,504,827	)
	Trade receivable
	 	 	985,419	 	 	 	(7,597,544	)
	Other receivables and prepaid expenses
	 	 	15,698	 	 	 	167,307	 
	Increase/ (Decrease) in:
	 	 	 	 	 	 	 	 
	Trade payables
	 	 	(6,985,009	)	 	 	7,663,573	 
	Other payables and accrued expenses
	 	 	(392,004	)	 	 	(452,047	)
	 
	 	 	
 	 	 	 	
 	 
	Cash used in operations
	 	 	(2,346,410	)	 	 	(5,521	)
	Income tax paid
	 	 	(215,554	)	 	 	(126,000	)
	Tooling costs paid
	 	 	(23,300	)	 	 	(1,652	)
	 
	 	 	
 	 	 	 	
 	 
	Net cash used in operating activities
	 	 	(2,585,264	)	 	 	(133,173	)
	CASH FLOWS FROM INVESTING ACTIVITIES
	 	 	 	 	 	 	 	 
	Interest received
	 	 	5,091	 	 	 	5,282	 
	Purchase of property, plant and equipment
	 	 	(256,894	)	 	 	(141,472	)
	Net cash used in investing activities
	 	 	(251,803	)	 	 	(136,190	)







(FORWARD)






10









 








Company No.: 501396 U




WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.

(Incorporated in Malaysia)



CASH FLOW STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2003



	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Note
	 	2003
	 	2002

	 	 	 	 	 	 	RM	 	RM
	CASH FLOWS FROM FINANCING ACTIVITIES
	 	 	 	 	 	 	 	 	 	 	 	 
	(Decrease)/ Increase in bank borrowings
	 	 	 	 	 	 	(1,518,000	)	 	 	6,449,000	 
	Interest paid
	 	 	 	 	 	 	(256,942	)	 	 	(184,831	)
	Repayment of hire-purchase payable
	 	 	 	 	 	 	(6,663	)	 	 	(9,508	)
	Fixed deposit released as security value
	 	 	 	 	 	 	—	 	 	 	100,000	 
	Net cash (used in)/from financing activities
	 	 	 	 	 	 	(1,781,605	)	 	 	6,354,661	 
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 
	NET
(DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS
	 	 	 	 	 	 	(4,618,672	)	 	 	6,085,298	 
	CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR
	 	 	 	 	 	 	6,116,171	 	 	 	30,873	 
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 
	CASH AND CASH EQUIVALENTS AT
END OF YEAR
	 	 	19	 	 	 	1,497,499	 	 	 	6,116,171	 
	 
	 	 	 	 	 	 	
 	 	 	 	
 	 







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




11









 








Company No.: 501396 U




WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.

(Incorporated in Malaysia)



NOTES TO THE FINANCIAL STATEMENTS

DECEMBER 31, 2003




	1.	 	PRINCIPAL ACTIVITY






	 	 	The Company is principally involved in manufacturing colour monitors.
There has been no significant change in the nature of the activity of
the Company during the financial year.






	2.	 	BASIS OF PREPARATION OF FINANCIAL STATEMENTS






	 	 	The financial statements of the Company have been prepared in accordance
with the provisions of the Companies Act, 1965 and the applicable
approved accounting standards of the Malaysian Accounting Standards
Board.






	 	 	The financial statements of the Company have been approved by the Board
of Directors for issuance on February 25, 2004.






	3.	 	SIGNIFICANT ACCOUNTING POLICIES






	 	 	Basis of Accounting






	 	 	The financial statements of the Company have been prepared under the
historical cost convention unless stated otherwise in the accounting
policies mentioned below.






	 	 	Revenue






	 	 	Revenue represents gross invoiced value of sales less returns.






	 	 	Sales of goods are recognised upon delivery of products and when the
risks and rewards of ownership have passed.






	 	 	Other operating income are recognised on an
accrual basis.
	 
	 	 	Foreign Currency Conversion






	 	 	Transactions in foreign currencies are converted into Ringgit Malaysia
at the exchange rates prevailing on the transaction dates and, where
settlement of liabilities and receivables have not yet taken place at
the end of the financial year, at the approximate exchange rates
prevailing on that date. Gains or losses arising from foreign currency
conversions are taken up in the income statement.






	 	 	The principal closing rate used in translation of foreign currency
amounts is USD1: RM3.8005 (2002: USD1: RM3.8000).






	 	 	Income Tax






	 	 	The charge for current tax is based on the results for the year as
adjusted for items which are non-assessable or disallowed. It is
calculated using tax rates that have been enacted or substantively
enacted by the balance sheet date.




12









 











Company No.: 501396 U





	 	 	Deferred tax is accounted for using the balance sheet liability method
in respect of temporary differences arising from differences between the
carrying amount of assets and liabilities in the financial statements
and the corresponding tax basis used in the computation of taxable
profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences and deferred tax assets are recognised to
the extent that it is probable that taxable profits will be available
against which deductible temporary differences can be utilised. Such
assets and liabilities are not recognised if the temporary differences
arises from the initial recognition of assets and liabilities in a
transaction which affects neither the tax profit nor the accounting
profit.






	 	 	At each balance sheet date, the Company re-assesses unrecognised deferred
tax assets and the carrying amount of deferred tax assets. The Company
recognises a previously unrecognised deferred tax asset to the extent
that it has become probable that future taxable profit will allow the
deferred tax asset to be recovered. The carrying amount of a deferred tax
asset is reviewed at each balance sheet and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to
allow the benefit of part or all of the deferred tax asset to be
utilised.






	 	 	Deferred tax is calculated at the tax rate that is expected to apply to
the period when the asset is realised or the liability is settled.
Deferred tax is charged or credited in the income statement, except when
it relates to items credited or charged directly to equity, in which
case the deferred tax is also dealt with in equity.






	 	 	Employee Benefit Costs






	 	 	Wages, salaries, bonuses, social contributions and other employee
benefits are recognised as expenses in the year in which the associated
services are rendered by employees of the Company. As required by law,
companies in Malaysia make contributions to a defined contribution plan,
the employees’ provident fund. Such contributions are recognised as
expenses in the income statement as incurred.






	 	 	Employee leave entitlement is recognised when it accrues to employee.
Accrual is made for the estimated liability for unconsumed leave as a
result of services rendered by the employees of the Company up to the
balance sheet date.






	 	 	Property, Plant and Equipment






	 	 	Property, plant and equipment are stated at cost less accumulated
depreciation.






	 	 	The carrying amounts of property, plant and equipment are reviewed at
each balance sheet date to determine whether there is any indication of
impairment. An impairment loss is recognised whenever the carrying
amount of an item of property, plant and equipment exceeds its
recoverable amount. The impairment loss is charged to the income
statement unless it reverses a previous revaluation in which case it is
treated as a revaluation decrease.






	 	 	Gains or losses arising from the disposal of an asset is determined as
the difference between the estimated net disposal proceeds and the
carrying amount of the asset, and is recognised in the income statement.






	 	 	All property, plant and equipment are depreciated on a straight line
method to their residual values at rates based on the estimated useful
lives of the various assets.




13









 











Company No.: 501396 U




	 	 	 	 	 
	The annual depreciation rates are as follows:
	 	 	 	 
	Plant and machinery
	 	 	10% - 20	%
	Electrical installation
	 	 	10	%
	Motor vehicle
	 	 	20	%
	Renovation
	 	 	10	%
	Office equipment
	 	 	20	%
	Furniture and fittings
	 	 	10	%
	Computer
	 	 	10% - 20	%
	Factor tools and equipment
	 	 	20	%
	Mould
	 	 	10	%
	Test equipment
	 	 	20	%








	 	 	Property, Plant and Equipment Under Hire-Purchase Arrangements






	 	 	Property, plant and equipment acquired under hire-purchase arrangements
are capitalised in the financial statements and the corresponding
obligations treated as liabilities.






	 	 	Inventories






	 	 	Inventories are valued at the lower of cost and net realisable value.
Cost is determined on the first-in, first-out basis. Net realisable
value represents the estimated selling price in the ordinary course of
business less selling and distribution costs and all other estimated
costs to completion.






	 	 	Cost of raw materials consists of the original purchase price plus the
cost of bringing the inventories to their present location. Cost of
work-in-progress and finished goods consists of cost of raw materials,
direct labour and an appropriate proportion of factory overheads.






	 	 	Receivables






	 	 	Receivables are stated at nominal value as reduced by the appropriate
allowances for estimated irrecoverable amounts. Allowance for doubtful
debts is made based on estimates of possible losses which may arise from
non-collection of certain receivable accounts.






	 	 	Provisions






	 	 	Provisions are made when the Company has a present legal or constructive
obligation as a result of past events, when it is probable that an
outflow of resources will be recognised to settle the obligation, and
when a reliable estimate of the amount can be made.






	 	 	Cash and Cash Equivalents






	 	 	Cash and cash equivalents comprise cash and bank balances, demand
deposits, bank overdrafts and highly liquid investments which are
readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.




14









 











Company No.: 501396 U




	 	 	Financial Instruments






	 	 	Financial instruments carried on the balance sheet include cash and bank
balances, receivables, payables and borrowings. The particular
recognition methods adopted are disclosed in the individual accounting
policy statements associated with each item.






	 	 	Financial instruments are classified as liabilities or equity in
accordance with the substance of the contractual arrangement. Interests,
dividends, gains and losses relating to a financial instrument classified
as liability are reported as expense or income. Distributions to holders
of financial instruments classified as equity are charged directly to
equity. Financial instruments are offset when the Company has a legally
unforeseeable right to set off the recognised amounts and intends either
to settle on a net basis, or to realise the asset and settle the
liability simultaneously.






	4.	 	PROFIT BEFORE TAX






	 	 	Profit before tax is arrived at:





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	After charging:
	 	 	 	 	 	 	 	 
	Depreciation of property, plant and equipment
	 	 	255,940	 	 	 	234,513	 
	Interest on:
	 	 	 	 	 	 	 	 
	Bank borrowings
	 	 	251,452	 	 	 	153,931	 
	Hire-purchase
	 	 	5,650	 	 	 	2,803	 
	Research and development:
	 	 	 	 	 	 	 	 
	Depreciation of property, plant and equipment
	 	 	9,397	 	 	 	—	 
	Other expenses
	 	 	230,602	 	 	 	—	 
	Provision for tooling costs
	 	 	222,999	 	 	 	196,059	 
	Rental of:
	 	 	 	 	 	 	 	 
	Premises
	 	 	211,679	 	 	 	226,176	 
	Motor vehicles
	 	 	—	 	 	 	1,810	 
	Allowance for slow moving inventories
	 	 	100,000	 	 	 	223,674	 
	Loss on foreign exchange:
	 	 	 	 	 	 	 	 
	Realised
	 	 	17,490	 	 	 	4,930	 
	Unrealised
	 	 	4,836	 	 	 	552	 
	Audit fee:
	 	 	 	 	 	 	 	 
	Current
	 	 	14,000	 	 	 	14,000	 
	Overprovision in prior year
	 	 	—	 	 	 	(1,000	)
	 
	 	 	
 	 	 	 	
 	 
	And crediting:
	 	 	 	 	 	 	 	 
	Interest income on fixed deposits
	 	 	5,091	 	 	 	5,282	 
	 
	 	 	
 	 	 	 	
 	 








	5.	 	INCOME TAX EXPENSE





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Current tax:
	 	 	 	 	 	 	 	 
	Current year
	 	 	165,500	 	 	 	201,000	 
	Overprovision in prior year
	 	 	(3,446	)	 	 	—	 
	Deferred tax (Note 7)
	 	 	 	 	 	 	 	 
	Current year
	 	 	(44,000	)	 	 	(118,000	)
	Overprovision in prior year
	 	 	12,000	 	 	 	—	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	130,054	 	 	 	83,000	 
	 
	 	 	
 	 	 	 	
 	 







15









 






Company No.: 501396 U





	 	 	The Company has been granted pioneer status by the Ministry of
International Trade and Industry (MITI) for the manufacturing of colour
monitors. Under this incentive, 70% of the Company’s statutory income
from the manufacturing of colour monitors is exempted from income tax for
a period of five years commencing from the production day (the
commencement of tax free period). The production day has been fixed as of
August 1, 2000 by MITI.






	 	 	The numerical reconciliation between the income tax expense and the
accounting profit at the statutory income tax rate is as follows:





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Accounting profit
	 	 	1,752,504	 	 	 	1,911,767	 
	 
	 	 	
 	 	 	 	
 	 
	Tax amount at the statutory income tax rate of 28%
	 	 	490,700	 	 	 	535,000	 
	Tax effects on non-deductible/
(non-taxable) items:
	 	 	 	 	 	 	 	 
	Depreciation of
non-qualifying property, plant and
equipment
	 	 	3,000	 	 	 	1,000	 
	Other non-allowable expenses
	 	 	10,100	 	 	 	13,000	 
	Non-taxable pioneer income
	 	 	(382,300	)	 	 	(466,000	)
	Overprovision of current tax in prior year
	 	 	(3,446	)	 	 	—	 
	Overprovision of deferred tax assets in prior year
	 	 	12,000	 	 	 	—	 
	 
	 	 	
 	 	 	 	
 	 
	Income tax expense
	 	 	130,054	 	 	 	83,000	 
	 
	 	 	
 	 	 	 	
 	 








	6.	 	PROPERTY, PLANT AND EQUIPMENT





	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Beginning	 	 	 	 	 	 	 	 	 	End
	Cost
	 	of year
	 	Additions
	 	Disposal
	 	of year

	 	 	RM	 	RM	 	RM	 	RM
	2003:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Plant and machinery
	 	 	1,340,001	 	 	 	9,000	 	 	 	—	 	 	 	1,349,001	 
	Electrical installation
	 	 	9,861	 	 	 	—	 	 	 	—	 	 	 	9,861	 
	Motor vehicle
	 	 	52,882	 	 	 	50,000	 	 	 	—	 	 	 	102,882	 
	Renovation
	 	 	33,456	 	 	 	—	 	 	 	—	 	 	 	33,456	 
	Office equipment
	 	 	35,106	 	 	 	1,258	 	 	 	—	 	 	 	36,364	 
	Furniture and fittings
	 	 	25,723	 	 	 	1,140	 	 	 	—	 	 	 	26,863	 
	Computer
	 	 	17,976	 	 	 	39,382	 	 	 	—	 	 	 	57,358	 
	Factory tools and
equipment
	 	 	46,172	 	 	 	145,392	 	 	 	—	 	 	 	191,564	 
	Mould
	 	 	358,800	 	 	 	—	 	 	 	—	 	 	 	358,800	 
	Test equipment
	 	 	189,071	 	 	 	10,722	 	 	 	—	 	 	 	199,793	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 
	 
	 	 	2,109,048	 	 	 	256,894	 	 	 	—	 	 	 	2,365,942	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 
	2002
	 	 	1,967,576	 	 	 	141,472	 	 	 	—	 	 	 	2,109,048	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 







16









 






Company No.: 501396 U




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accumulated	 	Beginning	 	Charge for	 	 	 	 	 	End
	Depreciation
	 	of year
	 	the year
	 	Disposal
	 	of year

	 	 	RM	 	RM	 	RM	 	RM
	2003:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Plant and machinery
	 	 	396,784	 	 	 	135,800	 	 	 	—	 	 	 	532,584	 
	Electrical installation
	 	 	2,037	 	 	 	986	 	 	 	—	 	 	 	3,023	 
	Motor vehicle
	 	 	25,559	 	 	 	15,577	 	 	 	—	 	 	 	41,136	 
	Renovation
	 	 	8,854	 	 	 	3,346	 	 	 	—	 	 	 	12,200	 
	Office equipment
	 	 	18,337	 	 	 	7,042	 	 	 	—	 	 	 	25,379	 
	Furniture and fittings
	 	 	5,670	 	 	 	2,648	 	 	 	—	 	 	 	8,318	 
	Computer
	 	 	2,547	 	 	 	6,466	 	 	 	—	 	 	 	9,013	 
	Factory tools and
equipment
	 	 	11,582	 	 	 	19,070	 	 	 	—	 	 	 	30,652	 
	Mould
	 	 	83,896	 	 	 	35,880	 	 	 	—	 	 	 	119,776	 
	Test equipment
	 	 	49,642	 	 	 	38,522	 	 	 	—	 	 	 	88,164	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 
	 
	 	 	604,908	 	 	 	265,337	 	 	 	—	 	 	 	870,245	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 
	2002
	 	 	370,395	 	 	 	234,513	 	 	 	—	 	 	 	604,908	 
	 
	 	 	
 	 	 	 	
 	 	 	 	
 	 	 	 	
 	 







	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM
	 	RM

	Net Book Value:
	 	 	 	 	 	 	 	 
	Plant and machinery
	 	 	816,417	 	 	 	943,217	 
	Electrical installation
	 	 	6,838	 	 	 	7,824	 
	Motor vehicle
	 	 	61,746	 	 	 	27,323	 
	Renovation
	 	 	21,256	 	 	 	24,602	 
	Office equipment
	 	 	10,985	 	 	 	16,769	 
	Furniture and fittings
	 	 	18,545	 	 	 	20,053	 
	Computer
	 	 	48,345	 	 	 	15,429	 
	Factory tools and equipment
	 	 	160,912	 	 	 	34,590	 
	Mould
	 	 	239,024	 	 	 	274,904	 
	Test equipment
	 	 	111,629	 	 	 	139,429	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	1,495,697	 	 	 	1,504,140	 
	 
	 	 	
 	 	 	 	
 	 







As of December 31, 2003, a motor vehicle with a carrying value of RM16,746 (2002:
RM27,323) is acquired under hire-purchase arrangement of which instalments are still
outstanding.




17









 








Company No.: 501396 U





	7.	 	DEFERRED TAX (ASSETS)/ LIABILITIES





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	At beginning of year
	 	 	(85,000	)	 	 	33,000	 
	Transfer (to)/ from income statement (Note 5):
	 	 	 	 	 	 	 	 
	Current year
	 	 	(44,000	)	 	 	(118,000	)
	Over-provision in prior year
	 	 	12,000	 	 	 	—	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	(117,000	)	 	 	(85,000	)
	 
	 	 	
 	 	 	 	
 	 
	The deferred tax assets are
in respect of the following:
	 	 	 	 	 	 	 	 
	Temporary differences between
tax capital
allowances and book depreciation of property,
plant and equipment
	 	 	(112,000	)	 	 	(169,000	)
	Unused tax losses
	 	 	—	 	 	 	93,000	 
	Other timing differences
	 	 	229,000	 	 	 	161,000	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	117,000	 	 	 	85,000	 
	 
	 	 	
 	 	 	 	
 	 








	8.	 	INVENTORIES





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	At cost:
	 	 	 	 	 	 	 	 
	Raw materials
	 	 	4,042,165	 	 	 	5,881,764	 
	Work-in-progress
	 	 	57,209	 	 	 	1,225,712	 
	Finished goods
	 	 	1,500,963	 	 	 	24,660	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	5,600,337	 	 	 	7,132,136	 
	At net realisable value:
	 	 	 	 	 	 	 	 
	Raw
materials - net of allowance for
slow moving inventories of RM323,674;
(2002: RM223,674)
	 	 	—	 	 	 	—	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	5,600,337	 	 	 	7,132,136	 
	 
	 	 	
 	 	 	 	
 	 








	9.	 	TRADE RECEIVABLE





Trade receivable denominated in United States Dollar comprises amount
receivable for the sales of goods to a shareholder of the Company. The
credit period granted on sale of goods is 45 days (2002: 45 days).




18









 








Company No.: 501396 U





	10.	 	OTHER RECEIVABLES AND PREPAID EXPENSES





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Refundable deposits
	 	 	1,215	 	 	 	12,415	 
	Prepaid expenses
	 	 	53,202	 	 	 	57,860	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	54,417	 	 	 	70,275	 
	 
	 	 	
 	 	 	 	
 	 








	11.	 	TRADE PAYABLES






	 	 	Trade payables comprise amount outstanding for trade purchases. The
average credit period granted to the Company ranges from 30 to 90 days
(2002: 30 to 90 days).






	 	 	Included in trade payables is an amount of RM11,607,339 (2002: RM
17,978,483) owing to shareholders of the Company.






	 	 	The currency exposure profile of trade payables is as follows:





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Ringgit Malaysia
	 	 	4,378,388	 	 	 	6,843,557	 
	United States Dollar
	 	 	6,886,430	 	 	 	11,404,717	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	11,264,818	 	 	 	18,248,274	 
	 
	 	 	
 	 	 	 	
 	 








	12.	 	OTHER PAYABLES AND ACCRUED EXPENSES





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Other payables
	 	 	340,486	 	 	 	691,891	 
	Accrued expenses
	 	 	123,258	 	 	 	161,991	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	463,744	 	 	 	853,882	 
	 
	 	 	
 	 	 	 	
 	 








	 	 	Other payables comprise amounts outstanding for ongoing costs.






19










 





Company No.: 501396 U



	 	 	The currency exposure profile of other payables and accrued expenses is as follows:






	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Other payables:
	 	 	 	 	 	 	 	 
	Ringgit Malaysia
	 	 	300,875	 	 	 	235,075	 
	United States Dollar
	 	 	39,611	 	 	 	456,816	 
	 
	 	 	340,486	 	 	 	691,891	 
	Accrued expenses:
	 	 	 	 	 	 	 	 
	Ringgit Malaysia
	 	 	123,258	 	 	 	161,991	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	463,744	 	 	 	853,882	 
	 
	 	 	
 	 	 	 	
 	 








	13.	 	HIRE-PURCHASE PAYABLE





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Total outstanding
	 	 	19,446	 	 	 	31,759	 
	Less: Interest-in-suspense outstanding
	 	 	(1,589	)	 	 	(7,239	)
	 
	 	 	
 	 	 	 	
 	 
	Principal outstanding
	 	 	17,857	 	 	 	24,520	 
	Less: Current portion
	 	 	(10,925	)	 	 	(9,510	)
	 
	 	 	
 	 	 	 	
 	 
	Non-current portion
	 	 	6,932	 	 	 	15,010	 
	 
	 	 	
 	 	 	 	
 	 








	 	 	The non-current portion is repayable as follows:





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Later than 1 year and not later than 2 years
	 	 	6,932	 	 	 	9,510	 
	Later than 2 years and not later than 5 years
	 	 	—	 	 	 	5,500	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	6,932	 	 	 	15,010	 
	 
	 	 	
 	 	 	 	
 	 








	 	 	It is the Company’s policy to acquire certain of its property, plant and
equipment under hire-purchase arrangements. The term for this hire-purchase payable is five
years and the
effective interest rate is 10.71% per annum. Interest rate is fixed at the
inception of the hire-purchase arrangements.
	 
	 	 	The hire-purchase payable is secured by the financial institution’s charge
over the asset under hire-purchase.




20









 











Company No.: 501396 U




	14.	 	BANK BORROWINGS





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Unsecured:
	 	 	 	 	 	 	 	 
	Bankers’ acceptances
	 	 	7,120,000	 	 	 	8,638,000	 
	Bank overdraft
	 	 	—	 	 	 	93,885	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	7,120,000	 	 	 	8,731,885	 
	 
	 	 	
 	 	 	 	
 	 








	 	 	The bank borrowings obtained from local licensed banks bear interests at
rates ranging from 1.00% to 2.00% (2002: 1.00% to 1.25%) per annum above
the lending banks’ base lending rates and cost of fund. The effective
interest rates as of December 31, 2003 range from 3.20% to 7.5% (2002:
3.03% to 7.65%) per annum. These facilities are covered by a corporate
guarantee given by the holding company of a shareholder of the Company.
	 
	15.	 	PROVISION FOR TOOLING COSTS





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	At beginning of year
	 	 	194,407	 	 	 	—	 
	Additions
	 	 	222,999	 	 	 	196,059	 
	Payment made
	 	 	(23,300	)	 	 	(1,652	)
	 
	 	 	
 	 	 	 	
 	 
	At end of year
	 	 	394,106	 	 	 	194,407	 
	 
	 	 	
 	 	 	 	
 	 









	16.	 	SHARE CAPITAL





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Authorised:
	 	 	 	 	 	 	 	 
	10,000,000 shares of RM1 each
	 	 	10,000,000	 	 	 	10,000,000	 
	 
	 	 	
 	 	 	 	
 	 
	Issued and fully paid:
	 	 	 	 	 	 	 	 
	2,508,000 ordinary shares of RM1 each
	 	 	2,508,000	 	 	 	2,508,000	 
	 
	 	 	
 	 	 	 	
 	 








	17.	 	RETAINED PROFIT






	 	 	Based on the estimated tax credits and tax exempt income available and
the prevailing tax rate applicable to dividends, the tax credit
provision is sufficient to frank only about RM2,662,000 of the Company’s
retained profit. The Company will be liable to incur additional income
tax of about RM273,000 if the balance of about RM977,000 in the retained
profit is to be distributed by way of cash dividend. The tax credits and
tax exempt income are subject to agreement by the tax authorities.




21









 











Company No.: 501396 U





	18.	 	LEASE COMMITMENTS






	 	 	As of the end of the financial year, lease commitments pertaining to the
Company in respect of rental of premises are as follows:





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Not later than 1 year
	 	 	198,091	 	 	 	198,691	 
	 
	 	 	
 	 	 	 	
 	 








	19.	 	CASH AND CASH EQUIVALENTS






	 	 	Cash and cash equivalents comprise the following:





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Cash and bank balances
	 	 	1,497,499	 	 	 	6,210,056	 
	Bank overdraft
	 	 	—	 	 	 	(93,885	)
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	1,497,499	 	 	 	6,116,171	 
	 
	 	 	
 	 	 	 	
 	 






	 	 	The currency exposure profile of cash and bank balances is as follows:






	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Ringgit Malaysia
	 	 	1,221,977	 	 	 	121,202	 
	United States Dollar
	 	 	275,522	 	 	 	5,994,969	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	1,497,499	 	 	 	6,116,171	 
	 
	 	 	
 	 	 	 	
 	 








	20.	 	FINANCIAL INSTRUMENTS






	 	a.	 	Financial Risk Management Objectives and Policies
	 
	 	 	 	The operations of the Company is subject to a variety of financial
risks, including foreign currency risk, interest rate risk, credit
risk, liquidity risk and cash flow risk. The overall financial
risk management policy of the Company is to minimise the effect of
such risks on its financial performance.
	 
	 	 	 	Various risk management policies are made and approved by the
Board for observation in the day-to-day operations for the
controlling and management of the risks associated with financial
instruments.




22









 











Company No.: 501396 U





	 	i.	 	Foreign currency risk
	 
	 	 	 	The Company has exposure to foreign exchange risk as a
result of transactions, receivables and payables in foreign
currencies arising from normal operating activities. The
Company does not speculate in foreign currencies.
	 
	 	ii.	 	Interest rate risk
	 
	 	 	 	The Company’s exposure to changes in interest rate risk
relates primarily to financing through hire-purchase and
bank borrowings.
	 
	 	iii.	 	Credit risk
	 
	 	 	 	The Company is exposed to credit risk mainly from trade
receivable. All sales are made to a shareholder of the
Company.
	 
	 	iv.	 	Liquidity risk
	 
	 	 	 	The Company practices prudent liquidity risk management to
minimise the mismatch of financial assets and liabilities
and to maintain sufficient credit facilities for contingent
funding requirement of working capital.
	 
	 	v.	 	Cash flow risk
	 
	 	 	 	The Company reviews its cash flow position regularly to
manage its exposure to fluctuations in future cash flows
associated with its monetary financial instruments.






	 	b.	 	Financial Assets
	 
	 	 	 	The Company’s principal financial assets are cash and bank
balances, and trade and other receivables.
	 
	 	c.	 	Financial Liabilities and Equity Instruments
	 
	 	 	 	Significant financial liabilities include trade and other
payables, hire-purchase payable and bank borrowings.
	 
	 	 	 	Equity instruments are recorded at the proceeds received.
	 
	 	d.	 	Credit Risk
	 
	 	 	 	There is a significant concentration of credit risk as all sales
are made to a shareholder of the Company. The maximum exposure to
credit risk is represented by the carrying amount of each
financial asset in the balance sheet.




23









 











Company No.: 501396 U




	 	e.	 	Fair Values






	 	i.	 	Financial liability





	 	 	 	 	 	 	 	 	 
	 	 	Carrying	 	Fair
	 	 	Amount
	 	value

	 	 	RM	 	RM
	Hire-purchase payable
	 	 	17,857	 	 	 	17,857	 
	 
	 	 	
 	 	 	 	
 	 








	 	 	 	The fair values of the above financial liability is
estimated using discounted cash flow analysis based on
current borrowing rates for similar type of borrowing
arrangement.
	 
	 	ii.	 	Cash and cash equivalents, trade and
other receivables, trade and other
payables and bank borrowings
	 
	 	 	 	The carrying amounts approximate fair values because of the
short maturity of these instruments.






	21.	 	GENERAL INFORMATION





	 	 	 	 	 	 	 	 	 
	 	 	2003
	 	2002

	 	 	RM	 	RM
	Staff costs:
	 	 	 	 	 	 	 	 
	Contributions to employees’ provident fund
	 	 	44,586	 	 	 	32,721	 
	Other staff costs
	 	 	852,682	 	 	 	777,994	 
	 
	 	 	
 	 	 	 	
 	 
	 
	 	 	897,268	 	 	 	810,715	 
	 
	 	 	
 	 	 	 	
 	 
	Number of directors and employees at end of year:
	 	 	 	 	 	 	 	 
	Directors
	 	 	6	 	 	 	6	 
	Employees
	 	 	41	 	 	 	32	 
	 
	 	 	
 	 	 	 	
 	 








	 	 	Staff costs include salaries, bonuses, contributions to employees’
provident fund and all other staff related expenses.






	 	 	The registered office of the Company is at 3rd Floor, Wisma Wang, 251-A
Jalan Burma, 10350 Penang, Malaysia. The principal place of business of
the Company is at Lot 316 & 317, Jalan PKNK 3/2, Kawasan Perindustrian
Sungai Petani, 08000 Sungai Petani, Kedah, Malaysia.




24









 





Company No.: 501396 U



WELLS EASTERN ASIA DISPLAYS
(M) SDN. BHD.

(Incorporated in Malaysia)



STATEMENT BY DIRECTORS



The
directors of WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. state that, in their
opinion, the accompanying balance sheet, and the related statements of income,
changes in equity and cash flows, are drawn up in accordance with the
provisions of the Companies Act, 1965 and the applicable approved accounting
standards in Malaysia, so as to give a true and fair view of the state of
affairs of the Company as of December 31, 2003 and of its results and cash
flows for the year ended on that date.



Signed in accordance with

a resolution of the Director,



	 	 	 
	

	 	
	


	 	

	SONG, KOW-WEN

	 	HSU, CHE-CHEN







Penang,

25 FEB 2004



DECLARATION BY THE DIRECTOR PRIMARILY RESPONSIBLE FOR

THE FINANCIAL MANAGEMENT OF THE COMPANY



I, SONG, KOW-WEN, the director primarily responsible for the financial
management of WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD., do solemnly and
sincerely decline that the accompanying balance sheet, and the related
statements of income, changes in equity and cash flows, are, in my opinion,
correct, and I make this solemn declaration conscientiously believing the same
to be true, and by virtue of the provisions of the Statutory Declarations Act,
1960.



	 	 	 
	Subscribed and solemnly declared by

	 	
	the above named SONG, KOW-WEN at

	 	

	GEORGETOWN in the State of PENANG

	 	Before me,
	on 25 FEB 2004
	 	 







	 	 	 
	 

	 	[CLARIFY COPY]
	

	 	

	

	 	COMMISSIONER FOR OATHS







	 	 	 	 	 
	LODGED BY

	 	:
	 	PFA CORPORATE SERVICES SDN. BHD. (148766 X)
	 
	 	 	 	 
	ADDRESS

	 	:
	 	3RD FLOOR, WISMA WANG
	

	 	 	 	251-A JALAN BURMA
	

	 	 	 	10350 PENANG
	 
	 	 	 	 
	TEL NO.

	 	:
	 	04-2288155







25