PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS

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1 PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS 1(a)(i) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year Group For the Quarter ended Half Year Ended 30/09/11 30/09/10 Change 30/09/11 30/09/10 Change Note S$'000 S$'000 % S$'000 S$'000 % Revenue 98, , % 205, , % Other operating income 1(a)(1) - exchange (loss)/gain (2,071) 7,157 nm (2,856) 5,588 nm - others 1, % 2,049 2, % (879) 8,122 nm (807) 7,700 nm 97, , % 205, , % Changes in inventories 5,455 (4,790) nm 3,819 (7,839) nm Purchase of goods (83,390) (86,493) -3.6% (167,594) (175,453) -4.5% Staff costs (7,409) (8,447) -12.3% (15,874) (16,853) -5.8% Depreciation and amortisation (1,435) (1,572) -8.7% (2,900) (3,201) -9.4% Other operating expenses 1(a)(2) (11,749) (12,469) -5.8% (24,087) (25,865) -6.9% (Loss)/Profit from operations (1,175) 2, % (1,478) (3,159) -53.2% Finance income % % Finance costs 1(a)(3) (1,238) (3,834) -67.7% (2,530) (8,058) -68.6% Net finance expense (1,162) (3,769) -69.2% (2,324) (7,762) -70.1% Loss before taxation (2,337) (1,210) 93.1% (3,802) (10,921) -65.2% Income tax (expense)/credit 1(a)(4) (686) 583 nm (1,161) 935 nm Loss for the period (3,023) (627) nm (4,963) (9,986) nm Attributable to: Equity holders of the Company (3,978) (1,239) nm (6,272) (8,770) -28.5% Non-controlling interests % 1,309 (1,216) nm (3,023) (627) 382.1% (4,963) (9,986) nm For information: (Loss)/Profit from operations INCLUDING exchange differences, restructuring expenses and professional fees (1,175) 2,559 nm # (1,478) (3,159) -53.2% Exchange loss/(gain) 2,071 (7,157) nm # 2,856 (5,588) nm Restructuring expense and professional fees 2,056 1, % # 3,799 3, % Profit / (Loss) from operations EXCLUDING exchange differences, restructuring expenses and professional fees 2,952 (2,716) nm 5,177 (5,061) nm nm denotes not meaningful Page 1 of 16

2 1(a)(ii) A statement of comprehensive income (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year Group For the Quarter Ended Half Year Ended 30/09/11 30/09/10 Change 30/09/11 30/09/10 Change S$'000 S$'000 % S$'000 S$'000 % Loss for the period (3,023) (627) nm (4,963) (9,986) nm Other comprehensive income: Fair value changes to available-for-sale - 1,391 nm (249) 3, % investment Translation differences relating to financial (1,320) 1,244 nm (774) 2, % statements of foreign subsidiaries Income tax - - nm - - nm Other comprehensive income for the period, (1,320) 2,635 nm (1,023) 5, % net of income tax Total comprehensive income for the period (4,343) 2,008 nm (5,986) (4,493) nm Attributable to: Equity holders of the Company (4,483) 2,646 nm (6,136) (3,469) 76.9% Non-controlling interests 140 (638) % 150 (1,024) % Total comprehensive income for the period (4,343) 2,008 nm (5,986) (4,493) nm nm denotes not meaningful Page 2 of 16

3 Notes To The Income Statement Group For the Quarter Ended For the Half Year Ended 30/09/11 30/09/10 30/09/11 30/09/10 Note 1(a)(1) S$'000 S$'000 S$'000 S$'000 Other operating income comprises: (a) Exchange (loss)/gain (2,071) 7,157 (2,856) 5,588 (b) Others Rental income Bad debts recovered Miscellaneous income 1, ,850 2,066 1, ,049 2,112 (879) 8,122 (807) 7, Group For the Quarter Ended For the Half Year Ended 30/09/11 30/09/10 30/09/11 30/09/10 Note 1(a)(2) S$'000 S$'000 S$'000 S$'000 Other operating expenses include: Allowance for doubtful receivables Allowance for inventories Loss/(Gain) on disposal of property, plant (37) and equipment Restructuring expenses and professional fees 2,056 1,804 3,799 3,686 Advertising & Promotional and related expenses 1, ,267 2,146 Rental and related expenses 2,860 3,332 5,930 6,887 Page 3 of 16

4 Group For the Quarter Ended For the Half Year Ended 30/09/11 30/09/10 30/09/11 30/09/10 Note 1(a)(3) S$'000 S$'000 S$'000 S$'000 Finance costs comprise interest on : (i) Sustainable debts 869-1,635 - (ii) Bank loans and overdrafts 343 2, ,701 (iii) Trust receipts and bills payable ,065 (iv) Fixed rate notes (v) Finance leases (vi) Others (22) 224 (4) 467 1,238 3,834 2,530 8,058 The lower finance costs in current period was mainly due to:- i) the interest rates stipulated in the Scheme of Arrangement (the Scheme Interest Rates) used to accrue for the interest charges in current period are lower than the original contractual interest rates used to accrue for the interest charges in previous corresponding period; and ii) in current period, only partial of the Scheme debts, i.e. sustainable debts, are interestbearing and were accrued for interest costs whereas all the Scheme debts in previous corresponding period were accrued for the interest costs. As mentioned in the last financial statements ended 31 March 2011, the directors are of the view that the interest accruals as at 31 March 2010 and onwards should have been adjusted based on the Scheme Interest Rates rather than based on the original contractual rates. Given that there were pending court applications and the prolonged appeal process required substantial focus from management, it was however inadvertently not done by the company. A write-back of the over accrual of interest costs for the previous periods was subsequently adjusted in the fourth quarter ended 31 March 2011 to account for the difference between the original contractual interest rates and the Scheme Interest Rates. Note 1(a)(4) The income tax expense for the quarter ended 30 September 2011 mainly relates to income tax expense for certain profitable overseas subsidiaries. The tax credit for the quarter ended 30 September 2010 mainly relates to recognition of tax benefits arising from certain overseas subsidiaries. Page 4 of 16

5 1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediate preceding financial year Group Company Note 30/09/11 31/03/11 30/09/11 31/03/11 S$'000 S$'000 S$'000 S$'000 Non-current assets Property, plant and equipment 1(b)(1) 122, ,148 88,361 88,432 Investment properties 1(b)(2) 7,909 7,979 - Subsidiaries ,852 17,852 Intangible assets 1(b)(3) 14,705 14,735 Goodwill on consolidation - - Trademarks and rights - - Other investments 1(b)(4) 2,244 2, Deferred tax assets 3,719 3, , , , ,284 Current assets Inventories 55,655 51, Trade and other receivables 1(b)(5) 88,128 89,296 91, ,366 Cash and cash equivalents 8,755 15, , ,044 91, ,629 Total assets 303, , , ,913 Equity Share capital 140, , , ,563 Reserves (243,635) (237,499) (279,188) (262,518) Total equity attributable to equity (103,072) (96,936) (138,625) (121,955) holders of the Company Non-controlling interests 1, Total equity (101,600) (96,245) (138,625) (121,955) Non-current liabilities Financial liabilities 1(b)(ii) 234, , , ,895 Other payables Deferred tax liabilities , , , ,895 Current liabilities Trade and other payables 1(b)(6) 133, ,517 82,571 78,591 Financial liabilities 1(b)(ii) 29,947 30, Provisions 1(b)(7) 4,646 3,668 2,142 2,142 Current tax payable 2,408 2,751 (47) , ,011 84,757 80,973 Total liabilities 405, , , ,868 Total equity and liabilities 303, , , ,913 Page 5 of 16

6 1(b)(ii) Aggregate amount of group's borrowings and debt securities...group.. 30/09/11 31/03/11 Secured Unsecured Secured Unsecured S$ 000 S$ 000 S$ 000 S$ 000 Amount repayable in one year or less, or on demand 22,716 7,231 23,111 6,964 Amount repayable after one year 232,415 2, ,556 2,646 Following the sanction of the Scheme by the Court of Appeal on 13 October 2010, except for those payables deemed essential for the Company s ordinary course of business, the company s debts owing to the Scheme Creditors have been restructured under the Scheme. Accordingly, the financial liabilities classified under Current Liabilities have been, under the Scheme, reclassified as Non-Current Liabilities and included in the above secured amount repayable after one year. The debts owing to the Scheme Creditors are carried forward from the last financial year ended 31 March 2011 and presented at their carrying amounts for the purpose of these financial statements, without discounting the amounts to their estimated present values or fair values, as the directors considered it impracticable to remeasure these financial liabilities at fair values. These debts were not revalued as at 30 September Subsequent to the current reporting period, the Non-sustainable Debt (as determined on 18 October 2011) has been converted on 24 October 2011 into redeemable convertible bonds ("RCB") of an aggregate principal amount of approximately S$139,376,860 ("RCB Amount"), on terms as set out in the Scheme Document, and issued by the Company in registered form to the Scheme Creditors on a pari passu basis. Details of any collateral The secured borrowings include interest-bearing bank borrowings amounting to $8.2 million as at 30 September 2011 which are secured by first legal mortgages over leasehold properties owned by subsidiaries with total carrying amount of $13.0 million. In addition, property, plant and equipment with a total carrying amount of $0.3 million as at 30 September 2011 were acquired under finance lease agreements. Under the terms of the Scheme, the amount due to Scheme Creditors of some S$229.7 million outstanding as at 30 September 2011 are to be secured by a fixed and floating charge over all asset of the company, subject to any prior rights of other creditors. The unsecured borrowings comprise mainly trust receipts, interest-bearing borrowings and trade bills payable used for the Group's business. The substantial shareholders of the Company had provided personal guarantees for unsecured borrowings amounting to $42.5 million. Page 6 of 16

7 Notes To The Balance Sheet Note 1(b)(1) Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses except for completed land and buildings, which are stated at their revalued amounts. Property, plant and equipment include a leasehold land and building under construction for the proposed Warehouse Retail Scheme ( WRS ) project with a carrying amount of $88.1 million as at 30 September Construction activities had been temporarily suspended pending the onward financing arrangements for the WRS project. Land and buildings were last valued at close to the previous financial year ended 31 March 2011 and were not revalued for the six months ended 30 September Note 1(b)(2) Investment properties are measured at fair value, with any change recognised in the income statement. Investment properties comprise a number of retail outlets and industrial buildings that are leased to external parties for a period ranging from 2 to 3 years. Subsequent renewals of the operating leases are negotiated with the lessees. Investment properties were last valued at close to the previous financial year ended 31 March 2011 and were not revalued for the six months ended 30 September Note 1(b)(3) Goodwill and trademarks relate to the retail and distribution business segment of the Group in respect of the consumer electronics and private label business and furniture and furnishing business, which are each regarded as a cash-generating unit. Impairment tests have not been carried out for the three months ended 30 September Note 1(b)(4) Other investments comprise quoted available-for-sale investment. Fluctuation is due to fluctuation in market prices. Page 7 of 16

8 Group Company 30/09/11 31/03/11 30/09/11 31/03/11 Note 1(b)(5) S$'000 S$'000 S$'000 S$'000 Trade and other receivables comprise: Trade receivables 47,915 52,703 3,305 6,415 Deposits, prepayments and other receivables 40,213 36, Amounts due from subsidiaries ,257 97,861 88,128 89,296 91, ,366 The decline in trade receivables for the Group is due mainly to the lower revenue. The increase in deposits, prepayments and other receivables for the Group is mainly attributed to advance payment to certain suppliers not extending credit. The decline in amount due from subsidiaries for the Company is due mainly to write off of intercompany loans from certain overseas subsidiary which is winding down its operations. Group Company 30/09/11 31/03/11 30/09/11 31/03/11 Note 1(b)(6) S$'000 S$'000 S$'000 S$'000 Trade and other payables comprise: Trade payables 34,219 34, Accrued operating expenses 83,868 83,505 74,270 71,237 Deposits and advances from customers 5,005 7, Other payables 9,947 9,694 1,407 2,570 Amounts due to subsidiaries - - 6,281 4, , ,517 82,571 78,591 The decline in trade and other payables balance for the Group was due to reductions of deposits and advances from customers. Note 1(b)(7) Group Company 30/09/11 31/03/11 30/09/11 31/03/11 S$'000 S$'000 S$'000 S$'000 Provisions comprise: Warranties 2,504 1, Restructuring 2,142 2,142 2,142 2,142 4,646 3,668 2,142 2,142 The higher provision for warranties for the Group and Company was due to additional provisions for the six months ended 30 September Page 8 of 16

9 1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. Group Quarter Ended 30/09/11 30/09/10 S$'000 S$'000 Operating activities: (Loss) for the financial period (3,023) (627) Adjustments for: Loss on disposal of property, plant and equipment Loss Gain Amortisation on disposal liquidation intangible of quoted of subsidiares available-for-sale assets investments Depreciation 1,420 1,558 Interest income (76) (65) Interest expense 1,238 3,834 Income tax expense/(credit) 686 (583) Unrealised exchange loss/(gain) 2,952 (6,823) Operating (loss) / profit before changes in working capital 3,267 (2,677) Changes in: Inventories (7,485) 7,578 Trade and other receivables 2,752 9,024 Trade and other payables 6,718 (7,528) Bills payable and trust receipts 329 (3,094) Deposits from customers (721) (98) Cash generated from operations 4,860 3,205 Income tax paid (1,288) (67) Interest income received Interest paid on bills payable and trust receipts (16) (136) Cash flows from operating activities 3,632 3,067 Page 9 of 16

10 Group Quarter Ended 30/09/11 30/09/10 S$'000 S$'000 Investing activities: Purchase of property, plant and equipment (570) (882) Proceeds from disposal of property, plant and equipment - 67 Cash flows from investing activities (570) (815) Financing activities: Interest paid on borrowings (433) (1,021) Dividend paid to non-controlling interests - (299) Proceeds Repayment from of interest-bearing borrowings (364) (236) - Proceeds from finance leases Payment of obligations under finance leases (90) (87) Cash flows from financing activities (776) (1,557) Net decrease in cash and cash equivalents 2, Cash and cash equivalents at beginning of financial period 308 (9,924) Effect of foreign exchange rate changes on balances held in foreign currencies 167 (327) Cash and cash equivalents at end of financial period 2,761 (9,556) Cash and cash equivalents comprise: Cash at bank and in hand 7,767 13,668 Fixed deposits with financial institutions 988 1,005 Bank overdrafts (5,994) (24,229) 2,761 (9,556) Page 10 of 16

11 1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year. Statement of Changes in Equity The Group Share Capital Capital Reserves Fair Value & Revaluation Reserves Foreign Currency Translation Reserve Accumulated Profits/ (Loss) Total attributable to Equity Holders of the Company Noncontrolling interests Total Equity S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 At 1 April , ,935 (26,272) (235,216) (96,936) 691 (96,245) Total comprehensive income for the period - - (249) 890 (2,294) (1,653) 10 (1,643) At 30 June , ,686 (25,382) (237,510) (98,589) 701 (97,888) Total comprehensive income for the period Dividend payment to minority interests of subsidiary (505) (3,978) (4,483) 140 (4,343) At 30 September , ,686 (25,887) (241,488) (103,072) 1,472 (101,600) At 1 April , ,069 (28,370) (205,823) (74,507) 3,690 (70,817) Total comprehensive income for the period - - 1,873 (457) (7,531) (6,115) (386) (6,501) At 30 June , ,942 (28,827) (213,354) (80,622) 3,304 (77,318) Total comprehensive income for the period Dividend payment to minority interests of subsidiary - - 1,391 2,494 (1,239) 2,646 (638) 2, (299) (299) At 30 September , ,333 (26,333) (214,593) (77,976) 2,367 (75,609) Page 11 of 16

12 Statement of Changes in Equity The Company Share Capital Accumulated Capital Reserves Profit/(Loss) Total S$'000 S$'000 S$'000 S$'000 At 1 April , (262,572) (121,955) Total comprehensive income for the period - - (3,372) (3,372) At 30 June , (265,944) (125,327) Total comprehensive income for the period - - (13,298) (13,298) At 30 September , (279,242) (138,625) At 1 April , (245,616) (104,999) Total comprehensive income for the period - - (4,224) (4,224) At 30 June , (249,840) (109,223) Total comprehensive income for the period - - 4,613 4,613 At 30 September , (245,227) (104,610) 1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares of the issuers, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. There were no changes in the Company's share capital since 31 March 2011, the end of the previous financial period reported thereon. 1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year. Company No. of Shares 30/09/11 31/03/11 Issued ordinary shares 816,541, ,541,501 Page 12 of 16

13 1(d)(iv) A statement showing all sales, transfer, disposal, cancellation and /or use of treasury shares as at the end of the current financial period reported on. Nil 2 Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice. The figures have not been audited nor reviewed by the Company s auditors. 3 Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of a matter). Not applicable. 4 Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied. The Group has adopted the same accounting policies and methods of computation in the financial statements for the current reporting period compared with the audited financial statements for the financial year ended 31 March If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change. Refer to note 4. 6 Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. Group Quarter Ended 30/09/11 30/09/10 Cents Cents (Loss) per ordinary share for the period calculated based on (Loss) attributable to shareholders: (i) Based on the number of ordinary shares in issue (0.49) (0.15) (ii) On a fully diluted basis n.a. n.a. Page 13 of 16

14 7 Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current financial period reported on and (b) immediately preceding financial year Group Company 30/09/11 31/03/11 30/09/11 31/03/11 Cents Cents Cents Cents (Negative) net asset value per ordinary share (12.62) (11.87) (16.98) (14.94) The negative net asset value per ordinary share is calculated based on 816,541,501 ordinary shares in issue. 8 A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following: (a) any significant factors that affected the turnover, costs and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and (b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current period reported on. Review of performance Overview The Scheme of Arrangement was finally sanctioned on 13 October 2010 with the Scheme Effective Date from 19 th April 2010, the Group continues to work harder to normalize its business and restore suppliers and customers confidence. However, the continued working capital constraint and challenging market conditions has resulted in the decline in revenue for quarter ended 30 th September 2011 by 9.2% to $98.2 million as compared to the previous corresponding quarter. This was in spite of higher sales in the retail segment (in line with the Group s strategy to focus more into the expansion of retail business) which was offset mainly by the lower sale in the distribution and trading segment. For the current quarter under review, the Group recorded a profit from operations of $3.0 million (before accounting for exchange difference of $2.1 million, restructuring expenses and professional fees of $2.1 million) compared with a loss from operations of $2.7 million (before accounting for exchange difference of $7.2 million, restructuring expenses and professional fees of $1.9 million) for the previous corresponding period. This improved performance was mainly due to higher sales margin and lower other operating expenses. 9 Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. Not applicable. Page 14 of 16

15 10 A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. In the last financial year ended 31 March 2011, considerable management and staff resources were directed towards the prolonged appeal process. Following the sanction of the Scheme on 13 October 2010, substantial time and efforts were also required in seeking clarifications on the implementation of the Scheme, as ordered by the Court of Appeal with some modifications. While the Company is putting in its best efforts to ensure the successful implementation of the Scheme, the management is, however, mindful of the uncertain global economic growth, and the resultant inconsistency in the demand of goods and services, and the time needed to regain lost confidence from both the customers and suppliers after the prolonged time required for the sanction of the Scheme. Management will consider all options available to best meet these challenges. The group will continue to focus on those growing business which requires lesser working capital and generates faster cash conversion cycle. The group is also in discussions/negotiations with potential investors for the Warehouse Retail Scheme project in Jurong East and will update any material developments accordingly. The financial statements are also prepared on a going concern basis as the directors believe that these financial statements do provide sufficient information to serve the interests of all shareholders and any other stakeholders. For further details, please refer to note 2 ( Note ) of the financial statements of the Group and the Company for the financial year ended 31 March 2011 in the Annual Report. The Scheme has now been sanctioned by the Court of Appeal but nonetheless, other matters stated in the Note may continue to be applicable and shareholders and investors are advised to be aware of the basis of preparation of the financial statements. The Company will continue to update the SGX-ST, Scheme Creditors, shareholders and the investing public on any material developments on a timely basis. Shareholders and the public are advised to continue to exercise extreme caution before making any decision in respect of their dealings in the Company s shares. Page 15 of 16

16 11 Dividend (a) Current Financial Period Reported on Any dividend recommended for the current financial period reported on? None. (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the previous corresponding period of the immediately preceding financial year? None. (c) Date payable Not applicable. (d) Book closure date Not applicable. 12 If no dividend has been declared/recommended, a statement to that effect. No dividend has been declared for the quarter ended 30 September Confirmation By Directors Save as disclosed under Note 10 above, the Board of Directors of the Company hereby confirm that to the best of their knowledge, nothing has come to the attention of the Board of Directors which may render the unaudited consolidated financial results for the period ended 30 September 2011 to be false or misleading, in any material aspect. BY ORDER OF THE BOARD Page 16 of 16