##### 



EXHIBIT 10.14 WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.   Financial Reportfor the financial year ended 31 December 2004 Contents PageReport of Independent Registered Accounting Firm
    
    1Balance Sheet
    
    2Income Statement
    
    3Statement of Changes in Equity
    
    4Cash Flow Statement
    
    5Notes to the Financial Statements
    
    6-17Statement by Directors
    
    18




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Report Of Independent Registered Accounting Firm To The Members Of WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.
 
 We have audited the financial statements set out on pages 2 to 17. The preparation of the
financial statements is the responsibility of the Companys directors. Our responsibility is to
express an opinion on the financial statements based on our audit. We conducted our audit in accordance with standards of the Public Company Accounting Oversight
Board in the United States of America. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material
misstatement. Our audit included examining, on a test basis, evidence relevant to the amounts and
disclosures in the financial statements. Our audit also included assessing the accounting
principles used and significant estimates made by the directors, as well as evaluating the overall
adequacy of the presentation of information in the financial statements. We believe our audit
provides a reasonable basis for our opinion. In our opinion, the financial statements present fairly, in all material respects, the financial
position of the Company as at 31 December 2004 and its results and cash flows for the financial
year ended on that date in conformity with accounting principles generally accepted in the United
States of America. The financial statements for the preceding financial year were audited by another firm of auditors
whose report dated 25 February 2004 expressed an unqualified opinion on those statements. /s/ Horwath
    
    /s/ Eddy Chan Wai HunFirm No: AF 1018
    
    Approval No: 2182/10/05 (J)Chartered Accountants
    
    PartnerPenang18 March 2005
 Page 1




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WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Balance Sheet As At 31 December 2004  2004
    
    
    
    2003Note
    
    
    USD
    
    
    
    USDNON-CURRENT ASSETSProperty, plant and equipment
    
    4
    
    
    
    333,602
    
    
    
    
    393,605Deferred tax assets
    
    5
    
    
    
    0
    
    
    
    
    30,789CURRENT ASSETSInventories
    
    6
    
    
    
    2,011,104
    
    
    
    
    1,473,773Trade receivables
    
    7
    
    
    
    7,318,500
    
    
    
    
    4,389,962Other receivables, deposits and prepayments
    
    
    
    
    
    21,339
    
    
    
    
    14,320Cash and bank balances
    
    8
    
    
    
    268,227
    
    
    
    
    394,0799,619,170
    
    
    
    
    6,272,134CURRENT LIABILITIESTrade payables
    
    9
    
    
    
    3,793,509
    
    
    
    
    2,964,426Other payables and accruals
    
    10
    
    
    
    362,721
    
    
    
    
    122,038Hire purchase payable
    
    11
    
    
    
    1,824
    
    
    
    
    2,875Bank borrowings  unsecured
    
    12
    
    
    
    3,404,769
    
    
    
    
    1,873,684Provision for tooling costs
    
    13
    
    
    
    44,458
    
    
    
    
    103,712Current tax liabilities
    
    
    
    
    
    11,596
    
    
    
    
    10,3957,618,877
    
    
    
    
    5,077,130NET CURRENT ASSETS
    
    
    
    
    
    2,000,293
    
    
    
    
    1,195,0042,333,895
    
    
    
    
    1,619,398FINANCED BY:-Share capital
    
    14
    
    
    
    1,315,789
    
    
    
    
    660,000Retained profits
    
    
    
    
    
    1,018,106
    
    
    
    
    957,574SHAREHOLDERS EQUITY
    
    
    
    
    
    2,333,895
    
    
    
    
    1,617,574NON-CURRENT LIABILITYHire purchase payable
    
    11
    
    
    
    0
    
    
    
    
    1,8242,333,895
    
    
    
    
    1,619,398
 The annexed notes form an integral part of these financial statements.
    Page 2




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WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Income StatementFor The Financial Year Ended 31 December 2004  2004
    
    
    2003Note
    
    USD
    
    
    USDREVENUE
    
    15
    
    
    19,822,673
    
    
    
    12,639,956COST OF SALES
    
    
    
    
    (18,347,195
    )
    
    
    (11,693,100
    )GROSS PROFIT
    
    
    
    
    1,475,478
    
    
    
    946,856OTHER OPERATING INCOME
    
    
    
    
    24,392
    
    
    
    24,183ADMINISTRATIVE AND GENERAL EXPENSES
    
    
    
    
    (548,255
    )
    
    
    (396,277
    )SELLING AND DISTRIBUTION EXPENSES
    
    
    
    
    (48,946
    )
    
    
    (45,918
    )PROFIT FROM OPERATIONS
    
    
    
    
    902,669
    
    
    
    528,844FINANCE COSTS
    
    
    
    
    (95,511
    )
    
    
    (67,658
    )PROFIT BEFORE TAX
    
    16
    
    
    807,158
    
    
    
    461,186TAX EXPENSE
    
    17
    
    
    (90,837
    )
    
    
    (34,225
    )NET PROFIT FOR THE YEAR
    
    
    
    
    716,321
    
    
    
    426,961
 The annexed notes form an integral part of these financial statements.
    
    Page 3




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WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Statement Of Changes In EquityFor The Financial Year Ended 31 December 2004  Share
    
    
    Retainedcapital
    
    
    profits
    
    
    TotalUSD
    
    
    USD
    
    
    USDBalance at 1 January 2003
    
    
    660,000
    
    
    
    530,613
    
    
    
    1,190,613Net profit for the year
    
    
    0
    
    
    
    426,961
    
    
    
    426,961Balance at 31 December 2003
    
    
    660,000
    
    
    
    957,574
    
    
    
    1,617,574Issue of bonus shares
    
    
    655,789
    
    
    
    (655,789
    )
    
    
    0Net profit for the year
    
    
    0
    
    
    
    716,321
    
    
    
    716,321Balance at 31 December 2004
    
    
    1,315,789
    
    
    
    1,018,106
    
    
    
    2,333,895
 The annexed notes form an integral part of these financial statements
    Page 4




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WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Cash Flow StatementFor The Financial Year Ended 31 December 2004  2004
    
    
    
    2003USD
    
    
    
    USDCASH FLOWS FROM OPERATING ACTIVITIESProfit before tax
    
    
    
    807,158
    
    
    
    
    461,186Adjustments for:-Allowance for slow moving inventories
    
    
    
    0
    
    
    
    
    26,316Depreciation
    
    
    
    78,955
    
    
    
    
    69,825Interest expense
    
    
    
    95,511
    
    
    
    
    67,658Provision for tooling costs
    
    
    
    54,680
    
    
    
    
    58,684Interest income
    
    
    
    (3,044
    )
    
    
    
    (1,340
    )Operating profit before working capital changes
    
    
    
    1,033,260
    
    
    
    
    682,329(Increase)/Decrease in inventories
    
    
    
    (537,331
    )
    
    
    
    376,790(Increase)/Decrease in receivables
    
    
    
    (2,935,557
    )
    
    
    
    263,824Increase/(Decrease) in payables
    
    
    
    1,069,766
    
    
    
    
    (1,940,419
    )Cash absorbed by operations
    
    
    
    (1,369,862
    )
    
    
    
    (617,476
    )Income tax paid
    
    
    
    (58,847
    )
    
    
    
    (56,725
    )Tooling costs paid
    
    
    
    (113,934
    )
    
    
    
    (6,132
    )Net cash used in operating activities
    
    
    
    (1,542,643
    )
    
    
    
    (680,333
    )CASH FLOWS FROM INVESTING ACTIVITIESInterest received
    
    
    
    3,044
    
    
    
    
    1,340Purchase of property, plant and equipment
    
    
    
    (18,952
    )
    
    
    
    (67,604
    )Net cash used in investing activities
    
    
    
    (15,908
    )
    
    
    
    (66,264
    )CASH FLOW S FROM FINANCING ACTIVITIESIncrease/(Decrease) in short term bank borrowings (net)
    
    
    
    1,531,085
    
    
    
    
    (399,474
    )Interest paid
    
    
    
    (95,511
    )
    
    
    
    (67,616
    )Repayment of hire purchase obligations
    
    
    
    (2,875
    )
    
    
    
    (1,753
    )Net cash from/(used in) financing activities
    
    
    
    1,432,699
    
    
    
    
    (468,843
    )Net decrease in cash and cash equivalents
    
    
    
    (125,852
    )
    
    
    
    (1,215,440
    )Cash and cash equivalents brought forward
    
    
    
    394,079
    
    
    
    
    1,609,519Cash and cash equivalents carried forward
    
    
    
    268,227
    
    
    
    
    394,079
 The annexed notes form an integral part of these financial statements.
    
    Page 5




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WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004   1.
    General InformationThe Company is a private company limited by shares, incorporated and domiciled in
Malaysia.The local currency of the Company is Ringgit Malaysia (RM). The reporting currency used in
presenting this set of financial statements is United States Dollars (USD).The Company is principally engaged in the manufacture of colour monitors. There has been no
significant change in the nature of this activity during the financial year.The registered office of the Company is located at 3rd Floor, Wisma Wang, 251-A,
Jalan Burma, 10350 Penang, Malaysia.The principal place of business of the Company is located at Lot 316 & 317, Jalan PKNK 3/2,
Kawasan Perindustrian Sungai Petani, 08000 Sungai Petani, Kedah, Malaysia.The total number of employees of the Company as at 31 December 2004 was 48 (2003 : 41).  2.
    Financial Risk ManagementThe activities of the Company expose it to certain financial risks, including currency
risk, interest rate risk, credit risk, liquidity risk and cash flow risk. The overall
financial risk management objective of the Company is to maximise shareholders value by
minimising the potential adverse impacts of these risks on its financial position,
performance and cash flows.The Board of Directors explicitly assumes the responsibilities of financial risk management
which is carried out mainly through risk reviews and internal control systems.Currency RiskThe Companys exposure to currency risk arises mainly from normal trading transactions
denominated in foreign currencies.The Company does not use any derivative financial instruments to manage its exposure to
currency risk as the directors are of the opinion that the net exposure is not significant
in view of the present Ringgit Malaysia exchange rate peg against United States Dollars.Interest Rate RiskThe Companys exposure to interest rate risk arises mainly from borrowings.The Company manages its exposure to interest rate risk by seeking to obtain the most
favourable interest rates available without increasing its other financial risk exposures. Page 6




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WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004   2.
    Financial Risk Management(contd)Credit RiskThe Companys exposure to credit risk arises mainly from cash deposits and receivables. The
maximum credit risk exposure is best represented by the total carrying amount of these
financial assets in the balance sheet.The Company manages its exposure to credit risk by seeking to invest cash assets safely and
profitably, assessing counter parties financial standings on an ongoing basis, setting and
monitoring counter parties limits and credit terms. The Company does not have any major
concentration of credit risk other than the significant amount owing by a related party as
disclosed in Note 7 to the financial statements.Liquidity and Cash Flow RisksThe Companys exposure to liquidity and cash flow risks arises mainly from general funding
and business activities.The Company practises prudent liquidity risk management by maintaining sufficient cash and
the availability of funding through certain committed credit facilities.  3.
    Significant Accounting Policies  3.1
    Basis of Preparation of Financial StatementsThe financial statements of the Company are prepared under the historical cost
convention, modified to include other bases of measurement as disclosed in other
sections of the significant accounting policies, and in compliance with the
accounting principles generally accepted in the United States of America.3.2
    Financial InstrumentsRecognised and UnrecognisedThe accounting policies for recognised financial instruments are disclosed in the
individual policies associated with each item. The Company does not have any
unrecognised financial instruments.Fair ValuesThe carrying amounts of financial assets and liabilities with short maturity periods
are assumed to approximate their fair values. Page 7




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WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004  3.
    Significant Accounting Policies (contd)  3.3
    Property, Plant and EquipmentProperty, plant and equipment are stated at cost less accumulated depreciation and
accumulated impairment losses, if any.Property, plant and equipment are depreciated on a straight-line method over the
estimated useful lives of the assets using the following annual rates:- Plant and machinery
    
    
    10-20
    %Electrical installation and renovation
    
    
    10
    %Motor vehicles
    
    
    20
    %Office equipment
    
    
    20
    %Furniture and fittings
    
    
    10
    %Computer
    
    
    10-20
    %Factory tools and equipment
    
    
    20
    %Mould
    
    
    10
    %
  3.4
    Impairment of AssetsThe carrying amounts of assets, other than deferred tax assets, inventories and
financial assets, are reviewed at each balance sheet date to determine whether there
is any indication that an item of asset may be impaired. If any such indication
exists, the recoverable amount of the asset is estimated. Any excess of the carrying
amount of the asset over its recoverable amount represents an impairment loss and is
recognised as an expense in the income statement.An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount and it is reversed only to the extent that the
increased carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, had no impairment loss been
recognised. The reversal is recognised in the income statement.3.5
    InventoriesInventories are valued at the lower of cost (determined on the first-in, first-out
basis) and net realisable value. Cost consists of all costs of purchase, costs of
conversion and other costs incurred in bringing the inventories to their present
location and condition.3.6
    ReceivablesReceivables are recognised at cost less an allowance for any doubtful debts.
Specific allowance for doubtful debts is made when collection is no longer probable.
Bad debts are written-off as incurred. Page 8




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WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004  3.
    Significant Accounting Policies (contd)  3.7
    PayablesPayables are recognised at cost which is the fair value of the consideration to be
paid in the future for goods and services received.3.8
    Hire PurchaseAssets acquired under hire purchase agreements are included in property, plant and
equipment and the capital element of the hire purchase commitments is shown as hire
purchase payables. The capital element of the hire purchase instalments is applied
to reduce the outstanding obligations and the interest element is charged to the
income statement so as to give a constant periodic rate of interest on the
outstanding liability at the end of each accounting period. Assets acquired under
hire purchase agreements are depreciated over the useful lives of equivalent owned
assets.3.9
    Loans and BorrowingsAll loans and borrowings are initially recognised at cost which is the fair value of
the proceeds received. The loans and borrowings are subsequently stated at amortised
cost using the effective yield method. The effective interest rate is the historical
rate for a fixed rate instrument and the current market rate for a floating rate
instrument.All borrowing costs are recognised as an expense in the period in which they are
incurred.3.10
    ProvisionsA provision is recognised when it is probable that an outflow of resources embodying
economic benefits will be required to settle a present obligation (legal or
constructive) as a result of a past event and a reliable estimate can be made of the
amount.3.11
    Foreign Currency Transactions and TranslationTransactions in foreign currencies are converted into the reporting currency at the
rates of exchange ruling at the transaction dates. Monetary assets and liabilities
denominated in foreign currencies at the balance sheet date are translated into the
reporting currency at the rates of exchange ruling at that date. Non-monetary assets
and liabilities which are stated at cost denominated in foreign currencies are
translated into the reporting currency at the rates of exchange ruling at the
transaction dates. Exchange gains and losses arising on foreign currency
transactions and translation are recognised in the income statement.The principal closing rate used in translation is RM1.00 : USD0.2632. Page 9




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WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004   3.
    Significant Accounting Policies (contd)  3.12
    Share CapitalThe Company has only one class of share capital, i.e. ordinary shares of RM1.00
(equivalent to USD0.2632) each, which is classified as equity. External costs
directly attributable to the issue of new shares are written-off to the share
premium account or, where there is no such account, charged to the income statement.3.13
    Income RecognitionIncome from the sale of goods is recognised upon delivery of goods and customers
acceptance. Interest income is recognised on an accrual basis.3.14
    Income TaxesIncome taxes for the year comprise current tax and deferred tax.Current tax represents the expected amount of income taxes payable in respect of the
taxable profit for the year and is measured using the tax rates that have been
enacted or substantially enacted by the balance sheet date.Deferred tax is provided for under the balance sheet liability method in respect of
all temporary differences between the carrying amount of an asset or liability in
the balance sheet and its tax base except for those temporary differences associated
with goodwill, negative goodwill or the initial recognition of an asset or liability
in a transaction which is not a business combination and affects neither accounting
nor taxable results at the time of the transaction.A deferred tax liability is recognised for all taxable temporary differences whereas
a deferred tax asset is recognised for all deductible temporary differences, unused
tax losses and unused tax credits to the extent that it is probable that future
taxable profit will be available against which the deductible temporary differences,
unused tax losses and unused tax credits can be utilised. Deferred tax assets and
liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on the tax rates that
have been enacted or substantially enacted by the balance sheet date.3.15
    Research and Development ExpenditureResearch and development expenditure is recognised as an expense in the period in
which the expenditure is incurred unless the development expenditure meets the asset
recognition criteria in which case the expenditure will be capitalised. Page 10




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WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004   3.
    Significant Accounting Policies (contd)  3.16
    Employee BenefitsShort-term Employee BenefitsShort-term employee benefits such as wages, salaries, bonuses and social security
contributions are recognised as an expense in the period in which the associated
services are rendered by the employees.Defined Contribution PlansAs required by law, employers in Malaysia make contributions to the state pension
scheme, Employees Provident Fund (EPF). Such contributions are recognised as an
expense in the period in which the associated services are rendered by the
employees.3.17
    Cash and Cash EquivalentsCash and cash equivalents comprise cash in hand, bank balances, demand deposits,
deposits pledged with financial institutions, bank overdrafts and short-term, highly
liquid investments that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value. Page 11




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WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004   4.
    Property, Plant And Equipment Balance at
    
    
    
    
    
    
    
    
    
    
    Balance at1.1.2004
    
    
    Additions
    
    
    Disposals
    
    
    31.12.2004At Cost
    
    USD
    
    
    USD
    
    
    USD
    
    
    USDPlant and machinery
    
    
    355,001
    
    
    
    1,447
    
    
    
    0
    
    
    
    356,448Electrical installation and renovation
    
    
    11,399
    
    
    
    0
    
    
    
    0
    
    
    
    11,399Motor vehicles
    
    
    27,074
    
    
    
    0
    
    
    
    0
    
    
    
    27,074Office equipment
    
    
    9,570
    
    
    
    495
    
    
    
    0
    
    
    
    10,065Furniture and fittings
    
    
    7,069
    
    
    
    0
    
    
    
    0
    
    
    
    7,069Computer
    
    
    15,094
    
    
    
    8,772
    
    
    
    0
    
    
    
    23,866Factory tools and equipment
    
    
    102,989
    
    
    
    8,238
    
    
    
    0
    
    
    
    111,227Mould
    
    
    94,421
    
    
    
    0
    
    
    
    0
    
    
    
    94,421622,617
    
    
    
    18,952
    
    
    
    0
    
    
    
    641,569
 Balance at
    
    
    Charge for
    
    
    
    
    
    
    Balance at1.1.2004
    
    
    the year
    
    
    Disposals
    
    
    31.12.2004Accumulated Depreciation
    
    USD
    
    
    USD
    
    
    USD
    
    
    USDPlant and machinery
    
    
    140,154
    
    
    
    35,816
    
    
    
    0
    
    
    
    175,970Electrical installation and renovation
    
    
    4,006
    
    
    
    1,140
    
    
    
    0
    
    
    
    5,146Motor vehicles
    
    
    10,825
    
    
    
    5,415
    
    
    
    0
    
    
    
    16,240Office equipment
    
    
    6,679
    
    
    
    1,964
    
    
    
    0
    
    
    
    8,643Furniture and fittings
    
    
    2,189
    
    
    
    707
    
    
    
    0
    
    
    
    2,896Computer
    
    
    2,372
    
    
    
    3,405
    
    
    
    0
    
    
    
    5,777Factory tools and equipment
    
    
    31,267
    
    
    
    21,066
    
    
    
    0
    
    
    
    52,333Mould
    
    
    31,520
    
    
    
    9,442
    
    
    
    0
    
    
    
    40,962229,012
    
    
    
    78,955
    
    
    
    0
    
    
    
    307,967
 2004
    
    
    2003Carrying Amount
    
    USD
    
    
    USDPlant and machinery
    
    
    180,478
    
    
    
    214,847Electrical installation and renovation
    
    
    6,253
    
    
    
    7,393Motor vehicles
    
    
    10,834
    
    
    
    16,249Office equipment
    
    
    1,422
    
    
    
    2,891Furniture and fittings
    
    
    4,173
    
    
    
    4,880Computer
    
    
    18,089
    
    
    
    12,722Factory tools and equipment
    
    
    58,894
    
    
    
    71,722Mould
    
    
    53,459
    
    
    
    62,901333,602
    
    
    
    393,605
 Included in property, plant and equipment is a motor vehicle with a carrying amount of
USD1,623 (2003 : USD4,407) acquired under hire purchase agreement. Page 12




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##### 



WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004    5.
    Deferred Tax Assets 2004
    
    
    2003USD
    
    
    USDBalance at 1 January
    
    
    30,789
    
    
    
    22,368Deferred tax (expense)/income relating to
origination and reversal of temporary differences
    
    
    (30,789
    )
    
    
    11,579Deferred tax expense underprovided in prior year
    
    
    0
    
    
    
    (3,158
    )Balance at 31 December
    
    
    0
    
    
    
    30,789
 The deferred tax assets are in respect of the deductible/(taxable) temporary
differences of the following items:- 2004
    
    
    2003USD
    
    
    USDInventories
    
    
    14,118
    
    
    
    23,850Receivables, payables and provisions
    
    
    20,619
    
    
    
    36,413Property, plant and equipment
    
    
    (34,737
    )
    
    
    (29,474
    )0
    
    
    
    30,789
 6.Inventories 2004
    
    
    2003At Cost
    
    USD
    
    
    USDRaw materials
    
    
    1,701,695
    
    
    
    1,063,728Work-in-progress
    
    
    65,137
    
    
    
    15,055Finished goods
    
    
    235,695
    
    
    
    394,990Goods-in-transit
    
    
    8,577
    
    
    
    02,011,104
    
    
    
    1,473,773
  7.
    Trade Receivables Included herein is an amount of USD7,203,908 (2003 : USD4,389,962) owing by a
substantial shareholder of the Company. The credit terms of trade receivables range from 60 to 75 days. Page 13




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##### 



WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004
  8.
    Cash And Bank Balances The currency exposure profile of cash and bank balances is as follows:- 2004
    
    
    2003USD
    
    
    USDUnited States Dollars
    
    
    64,605
    
    
    
    65,439Ringgit Malaysia
    
    
    203,622
    
    
    
    328,640268,227
    
    
    
    394,079
  9.
    Trade Payables Included herein are amounts totalling USD2,587,503 (2003 : USD2,420,032) owing to the
shareholders of the Company. The currency exposure profile of trade payables is as follows:- 2004
    
    
    2003USD
    
    
    USDUnited States Dollars
    
    
    2,253,782
    
    
    
    1,812,219Ringgit Malaysia
    
    
    1,539,727
    
    
    
    1,152,2073,793,509
    
    
    
    2,964,426
 The credit terms of trade payables range from 30 to 60 days.  10.
    Other Payables And Accruals Included herein is an amount of USD70,994 (2003 : USD80,303) owing to a substantial
shareholder of the Company. The amount due is unsecured, non-interest bearing and has no
fixed term of repayment.  11.
    Hire Purchase Payable 2004
    
    
    2003USD
    
    
    USDMinimum hire purchase payments:-- not later than one year
    
    
    1,890
    
    
    
    3,240- later than one year and not later than five years
    
    
    0
    
    
    
    1,8901,890
    
    
    
    5,130Future finance charges
    
    
    (66
    )
    
    
    (431
    )Present value of hire purchase liability
    
    
    1,824
    
    
    
    4,699
 Page 14




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##### 



WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004   11.
    Hire Purchase Payable(contd) 2004
    
    
    2003USD
    
    
    USDCurrent:-- not later than one year
    
    
    1,824
    
    
    
    2,875Non-current:-- later than one year and not later than five years
    
    
    0
    
    
    
    1,8241,824
    
    
    
    4,699
 The effective interest rate of hire purchase payable is 10.68% (2003 : 10.68%) per annum.  12.
    Bank Borrowings  Unsecured 2004
    
    
    2003USD
    
    
    USDBankers acceptance
    
    
    2,875,526
    
    
    
    1,873,684Short-term loans
    
    
    529,243
    
    
    
    03,404,769
    
    
    
    1,873,684
 The currency exposure profile of bank borrowings is as follows:- 2004
    
    
    2003USD
    
    
    USDUnited States Dollars
    
    
    529,243
    
    
    
    0Ringgit Malaysia
    
    
    2,875,526
    
    
    
    1,873,6843,404,769
    
    
    
    1,873,684
 Bank borrowings are guaranteed by the holding company of a substantial shareholder of the
Company. The effective interest rates of bank borrowings range from 2.85% to 3.75% (2003 :
3.2%) per annum.  13.
    Provision For Tooling Costs 2004
    
    
    2003USD
    
    
    USDBalance at 1 January
    
    
    103,712
    
    
    
    51,160Provision made during the year
    
    
    54,680
    
    
    
    58,684Payment made during the year
    
    
    (113,934
    )
    
    
    (6,132
    )Balance at 31 December
    
    
    44,458
    
    
    
    103,712
 Page 15
      WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004   14.
    Share Capital 2004
    
    
    2003USD
    
    
    USDOrdinary shares of RM1.00 (equivalent to USD0.2632) eachAuthorised:-10,000,000 shares
    
    
    2,631,579
    
    
    
    2,631,579Issued and fully paid-up:-At 1 January  2,508,000 shares
    
    
    660,000
    
    
    
    660,000Bonus issue  2,492,000 (2003:NIL) shares
    
    
    655,789
    
    
    
    0At 31 December - 5,000,000
(2003:2,508,000) shares
    
    
    1,315,789
    
    
    
    660,000
  15.
    RevenueRevenue represents income from the sale of goods. Included herein are amounts totalling
USD19,319,539 (2003 : USD12,639,956) arising from sales to a substantial shareholder.16.
    Profit Before Tax 2004
    
    
    2003USD
    
    
    USDProfit before tax is arrived at after charging:-Allowance for slow moving inventories
    
    
    0
    
    
    
    26,316Auditors remuneration- current year
    
    
    4,605
    
    
    
    3,684- underprovision in prior year
    
    
    1,053
    
    
    
    0Depreciation
    
    
    72,080
    
    
    
    67,352Interest expense
    
    
    95,511
    
    
    
    67,658Management fee
    
    
    149,114
    
    
    
    113,200Provision for tooling costs
    
    
    54,680
    
    
    
    58,684Realised loss on foreign exchange
    
    
    8,468
    
    
    
    5,876Rental of premises
    
    
    56,117
    
    
    
    55,705Research and development expenditure- depreciation
    
    
    6,875
    
    
    
    2,473- others
    
    
    113,973
    
    
    
    60,685Staff costs
    
    
    279,895
    
    
    
    236,123And crediting:-Interest income
    
    
    3,044
    
    
    
    1,340
  Included in staff costs are contributions to a defined contribution plan amounting to
USD13,244 (2003 : USD11,733). Page 16
      WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004   17.
    Tax Expense 2004
    
    
    2003USD
    
    
    USDTax based on results for the year:-Malaysian income tax
    
    
    60,281
    
    
    
    43,553Deferred tax
    
    
    30,789
    
    
    
    (11,579
    )91,070
    
    
    
    31,974Tax (over)/underprovided in prior year:-Malaysian income tax
    
    
    (233
    )
    
    
    (907
    )Deferred tax
    
    
    0
    
    
    
    3,15890,837
    
    
    
    34,225
  The numerical reconciliation between the applicable tax rate, which is the statutory income
tax rate, and the average effective tax rate is as follows:- 2004
    
    
    2003%
    
    
    %Applicable tax rate
    
    
    28.00
    
    
    
    28.00Non-deductible expenses
    
    
    0.46
    
    
    
    0.74Tax exempt income from pioneer status
    
    
    (17.18
    )
    
    
    (21.81
    )Average effective tax rate
    
    
    11.28
    
    
    
    6.93
  As at 31 December 2004, the Company has sufficient tax credits and tax exempt accounts to
frank its retained profits in full if paid out as dividends.  18.
    Financial InstrumentsRecognised and UnrecognisedThe information about the extent and nature of significant recognised financial instruments
is disclosed in the individual notes associated with each item. The Company does not have
any unrecognised financial instruments.Fair ValuesThe carrying amounts of financial assets and liabilities of the Company as at 31 December
2004 and 2003 approximate their fair values. Page 17
      WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD. 
 Notes To The Financial StatementsFor The Financial Year Ended 31 December 2004  Statement By Directors We, Hsu, Che-Chen and Yeh, Kuo-Sheng, being two of the directors of Wells Eastern Asia
Displays (M) Sdn. Bhd., do hereby state that in the opinion of the directors, the financial
statements set out on pages 2 to 17 are drawn up in accordance with the accounting principles
generally accepted in the United States of America so as to give a true and fair view of the state
of affairs of the Company as at 31 December 2004 and of its results and cash flows for the
financial year ended on that date.  Hsu, Che-Chen
    
    Yeh, Kuo-Sheng
 Penang, Date: 18 March 2005
  Page 18      WELLS EASTERN ASIA DISPLAYS (M) SDN. BHD.