Availability Reliability Valued Partnerbhglobal.listedcompany.com/misc/ar2008.pdfOne-Stop supply services and MRO-Sourcing solutions to the Shipbuilding/Repair, Petrochemical and Offshore

BH GLOBAL MARINE LIMITED

No. 8 Penjuru Lane, Singapore 609189

Registration No: 200404900H

Availability

ReliabilityValued Partner

Annual Report 2008

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eport 2008

Designed and produced by

+65 6578 6522

contents

01 Corporate Profile02 Company’s Business05 Geographical Market06 Chairman’s Statement08 Financial Review 10 Board of Directors12 Senior Management14 Financial Highlights15 Corporate Information16 Financial Contents17 Corporate Governance Report28 Directors’ Report31 Statement by Directors32 Independent Auditor’s Report33 Consolidated Income Statement34 Balance Sheets35 Statements of Changes in Equity36 Consolidated Cash Flow Statement38 Notes To The Financial Statements67 Statistics of Shareholdings69 Notice of Annual General Meeting Proxy Form

BH GLOBAL MARINE LTD (“BH GLOBAL”) has been in the Marine & Offshore electrical business for over 40 years. With its operational headquarters strategically located in Singapore, we offer One-Stop supply services and MRO-Sourcing solutions to the Shipbuilding/Repair, Petrochemical and Offshore Oil & Gas industries in the region.

We are a GLOBAL supply chain and logistics provider, equipped with the most comprehensive range of superior-quality electrical cables and accessories, lighting fixtures, power, control & instrumentation cables. We ensure safe and efficient operation of all systems on-board specialized marine vessels and offshore production facilities.

We purchase directly from manufacturers and factories from around the world. Our products are competitively priced, of premium quality and meet the most stringent standards in the market. BH GLOBAL’s quest to be the market leader propels us to constantly innovate and to provide excellent logistics and technical support.

We have an extensive GLOBAL clientele comprising international ship managers, ship owners, ship chandlers, shipyards and FPSO conversion contractors, specialized rig fabricators from Asia Pacific to Middle East & North/South American energy-based corporations.

BH GLOBAL has created valued partnerships with committed and renowned manufacturers and principals in product safety and branding specifications essential in hazardous environments within the Marine & Offshore industry. Our products are certified with ABS, CCS & DNV approvals.

BH GLOBAL provides large-scale product inventory management, technical support & solutions with logistic capabilities, coupled with fast responses and on-time deliveries which are our customer service core values.

We are consistently AVAILABLE and RELIABLE, and we are a total GLOBAL SOLUTION for your Marine & Offshore electrical needs.

Corporate profile

CoMpaNY’S BUSiNeSS

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BHGLOBAL MARINE LIMITED

MARkET CHALLENGES TO SHIPBUILDING, REPAIRS AND MOBILE OFFSHORE DRILLING UNITS FABRICATION.

“BH GLOBAL enhances performance in shipyards and on the high seas...”

Major shipbuilders and specialized rig fabricators have to:

• Createnewvalue-addedcustomerservices.• Maximize manufacturing efficiency and processes to remain profitable while reducing

productioncost.• Manageentiresupplier&subcontractorchaintomaintainacompetitiveedgewhiledelivering

quality,on-timecompliancesystems.

Shipbuilders&EPCcontractorsprefermulti-systempackagesfromasinglesupplierorvendor.Theyexpectqualityandconformitytothehighestmaritimestandardsandproductspecifications.

Expectations of ship chandlers, ship owners, ship-management companies, shipyard repair andfabrication contractors:

1. Afullrangeofcables,lightingandelectricalequipments&consumablestocoverincreasinglycomplexshipboardsupplies.

2. Abilitytomeetallmaritimespecificationandclassification,plusinter-operability.3. Qualityandreliabilityofproductstoensuresafe&efficientoperationsofallsystems.4. Approvedsupplierstatus,approvedproductandbrandsstatus.5. Productavailabilityon-demand,on-timedeliveries,technicalsupportservices.

BH GLOBAL – A ONE-STOP ELECTRICAL SPECIALISTShipbuilding&shippingareglobalbusinesses;BHGLOBALisaSingaporebasedpublic-listedcompanywithresourcestomeetglobaldemands.


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ANNUAL REPORT 2008

Asamajorsuppliertotheworld’sshipbuilding&MODU’sfabricators,BHGLOBALprovidesspecializedelectricalproducts&servicestothefollowingbusinesssectorsandcustomersprofiles:

• MRO business: Ship chandlers, ship owners, ship management companies, ship-repairyards,sub-contractors&marineelectrical servicessupport industriesand regional industrialresellers.

• New-Built Projects: Major shipyards, marine offshore EPCC fabrication contractors andOffshoreMODU’sprojectowners/operators/drillingcontractors.

MARINE ELECTRICAL PRODUCT PORFOLIO:1. Fullrangeofcables–Low/MediumVoltagePower/VFDcables,control/instrumentation,LAN

networkand fieldbuscables,coaxandoptical fibrecables,all conforming to thehighestIEC/IEEEstandardsandapprovedbyleadingclassificationsocieties:ABS,BV,CCS,DNV,GL,LR,RINA,RMRS,ISO9001qualitystandards.

2. Cable Glands and Accessories – electrical tapes, joints, terminations, connectors, lugs,heat-shrinktechnologyproducts,cabletray&ladderstosupporttheentirecableinstallationsystems.

3. NicheMarineLightingSystems–highperformanceSearchlights,LEDNavigation&Signalinglightswith control panels, on-board Floodlights, indoor&outdoorwatertight luminaries forship’s special compartment areas, emergency lightings, decorative lights for cruise ships,heli-deckandotherspecialmaritimeoperationslightsystems.

4. Lighting&ElectricalEquipmentforHazardousLocations–mainlyforapplicationsinspecializedvessels&MODUs,allwithATEXapprovalsforexplosionproofprotection.

MARINE ELECTRICAL CONSUMABLES: FOR SPARES PARTS AND REPLACEMENT.1. Marinegradeincandescentlamps,highintensitydischarge,fluorescent&halogenwithbulbs/

tubesofdifferentlengthsizes&shapesinvarietyofoperatingvoltagesandwattageintensity&energysavingtypes.

2. Light fittingcomponents– lamp/bulbbase-holders,ballastcomponentsofdifferentvoltagesratings/electronictypes

3. MROsourcingforallothersupplementaryelectricalsuppliestocompletethecustomer’sentireprocurementpackages.

BH GLOBAL: SERVICES & CAPABILITIESGlobalExpertiseandexcellentcustomerservicedimensionisthecornerstoneofourbusinessvalues.Weareafull-servicesupplier.Wecangetwhatyouneed,whenandwhereyouneedit.

1. Cables,cablesaccessoriesandMarineLightingSystemsareourcorebusiness.Withrelatedranges of marine electrical products, we are able to support all sourcing & procurementfunctionstoensurepromptgloballogisticsdeliveries.

2. Workingcloselywith theshippingprocurementagencies,primeinstallers&integrators,weemploythebestpracticestocutcosts&increaseefficiency.

3. Inthefieldofsafety,weonlysupplyproductsthatconformtointernationalqualitystandards,certifiedbynumerouscertificationbodies.

INVENTORyWehaveacomprehensive rangeof inventoryofoverSGD$40million,consistingof8,000productlineitemsfrom370internationalpremiummanufacturers&suppliers.Ourinventorycomprisesrenownedqualitybrandsatcompetitivepricingandex-stockdeliverystatus.Wehavesupplies for literallyeverytypeofshipboardelectricalitems.

“Weareaone-stopsupplyforallmarineelectricalprocurement...”


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WAREHOUSE FACILITIESOurwarehousespans70,000squarefeetofarea,withstate-of-the-artstoragefacilities,materialhandlingequipmentandcablecutting&reelingmachines.Ourinventorymanagementsystemallowsforefficientandeffectivestockkeeping.Weprovideinterimstoragefororderedproductstosupportourcustomers’on-goingprojectsforjust-in-timedeliveries.

GLOBAL LOGISTIC MOBILITyWehaveourown fleetof trucks,andwehavedevelopedastrongalliancewith international freightforwarders.Weprovideon-site/off-sitesupportwithfastresponse&on-time,samedaydeliverywherepossible.Weprovide fast track,air-liftdeliveries toMiddle-Eastkeyaccountswithin3workingdays.Weareable toservice remoteandnewshipyard locations (Vietnam, Indonesia,East-Malaysia,UAE-Dubai,Chinaprovinces,India).

SALES SUPPORTWehavededicatedkeyaccount,customer-relationsrepresentativesforeveryclientcontact.Supportisgivenfromprojectinitiationtodelivery.Ourbenchmarktogeneratecommercial&technicalquotationproposalswithinthesameworkingdayinspiresustocontinuouslyimprove.

Wealsoprovide:

1. GlobalMROsourcingcapabilities2. Productapplicationsconsultancy3. Productcross-referencingcapabilities4. Internationalproductstandards&specificationsupport5. Flexiblecontractualcommercialterms&conditions6. FullbudgetarypricesupportduringRFQ/RFItenderprocess

Ourlocalsalessupportservesourclients365daysayear.

TECHNICAL & ENGINEERING SUPPORTOurtechnicalandengineeringsupportprovides:

1. Fullprojecttechnicalsubmission2. Productcertification3. Typeapprovals,drawingsandtestreports4. Vendordataapprovalsdossier5. Expediting&on-siteinspection6. Warrantytracking

Oneof our value-added services thatweprovide isMarine Lighting consultation for optimal lightingdesign solutions. We also have customized in-house production of specialized light fixtures withaccessoriesfordifferentshipboardapplication,function&locations.

CABLE MANAGEMENT PROGRAMProjectownerswithnew-builtprojectsareprovidedwith:completecablesizes,quantityanddrumlengths.We offer a total cablemanagement solution completewith project inventory reports.Other servicesofferedincludecablecuttingandre-drummingservicesaswellason-site&offsitestaging.

PARTNERSHIPSBeing customer focused, we are constantly developing strategic alliances with OGP owners, EPCfabricators for frame/supportagreements,vendor/productapprovalsandMRObusinesswithreseller-distributor partnerships. These ensure continual supplies and price stability. As a preferred supplier,we offer consultation in terms of design, installation, maintenance, technical support, warranty andlogistic support.Bysharingour intelligence&network,wewidenopportunities formajorcontracts tobeawarded.

GeoGraphiCal Market

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ANNUAL REPORT 2008

Ourexcellentlogisticalinfrastructureenablesustoofferourproductsandservicesworldwide.WeareabletoservicecustomersinDubaiwithinonetothreedays.InFY2008,83%ofourrevenuecontributioncamefromSingapore,8%fromSouth-EastAsia,5%fromEastAsia,3%fromtheMiddleEast,whiletheremainingcamefromcountriesspanningallovertheglobe–includingArgentina,Australia,Canada,England,Finland,France,Greece,Germany,Holland,India,Mauritius,UnitedKingdomandtheUnitedStatesofAmerica.WeareBHGLOBAL.WeareaGLOBALSOLUTIONforyou.

ChairMaN’S StateMeNt

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DearShareholders,

Onbehalfof theBoardofDirectors, Iampleased topresent toyou theannualreportforfinancialyearended31December2008(“FY2008”).

In FY2008, we continued to be profitable by growing our business ata steady pace. Revenue rose by 15% to S$94.6 million on the backof increased shipbuilding and ship conversion activities while earnings

wereupby10%toS$19.2million.Torewardour shareholders for their confidence in BHGLOBAL, we have declared a first and finalcashdividendof1.2centsperordinaryshare(one-tiertaxexempt).

Our Belief

Inourbusiness,itiscrucialtoreactstrategicallyand swiftly to changes happening around us.Toenhanceourcompetitiveedge,weconstantlyreviewourstrategies toensure that it is in linewith our corporate objectives. Our primaryobjectiveistobuildabusinesstolast.

key Developments in Fy2008FY2008 was a fruitful year for BH GLOBAL. Our strategies remained consistent particularly in thefollowingareas:

(1) Expanded capacity and greater supply chain management capabilities

Weareverypleased tosharewithyouour joy for thenewofficeat10PenjuruLane.Theacquisitionwascompletedduringtheyearandwemovedintothenewpremise inNovember2008.Now,with theexpandedwarehousing facilitiesofapproximately 20,000 m2 in total land area, we are able to better serve ourcustomersandimproveoursupplychainmanagementcapabilities.

On22January2009,weenteredintoasharesubscriptionagreementwithZ-PowerAutomation Pte Ltd (“Z-Power”) at a price of S$450,000 to acquire 60% stakein thecompany.Z-Powerspecializes in theassembly,manufactureandrepairofswitchboardsandswitchgearsforvessels.

Subsequently,weinvestedinSkyHoldingPteLtd(“SkyHolding”),amanufacturerandsupplierofvarioustypesofwire,includingspecialtysteelwireusedincableshielding, on 18 February 2009. Under the agreement, BH GLOBAL will bethemajor shareholder of SkyHoldingby holding60%of the latter’s total sharecapital.

On25February2009,weannouncedthesubscriptionof34%shareholdingsinDreamMarineShipSparePartsTradingL.L.C(“DreamMarine”)inDubai,UnitedArab Emirates. DreamMarine is primarily engaged in the business of ship andboat spareparts and component trading. Through this acquisition,weareabletoexpandourown rangeofproductsandservicesaswellasourgeographicalreachbeyondSingapore.

ByaddingZ-Power,SkyHoldingandDreamMarine to theGroup,BHGLOBALcanprovideamorecomprehensivesupplychainsolutionpackagetoitscustomers,whichconsistofshipowners,operators,chandlers,rig-buildersandshipyards.

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ANNUAL REPORT 2008

(2) Wider product offerings

In2008,theGroupwasappointedbyafewoverseasprincipalsastheirsoledistributorinAsiaPacificregion.Withthesenewdistributorships,BHGLOBALnowofferswidervarietyandrangeofmarinecablesandaccessories.

(3) Value-added services

Wecontinuetobelieveindeliveringvaluetoourcustomers.Someofthevalue-addedservicesincludeprojectmanagementandwarehousingsupport,whereweworkverycloselywithallintheshippingprocurementagencies,primeinstallersandintegratorstoidentifyvulnerabilitiesintheirsupplychainandprovideusefulrecommendationsforimprovements.Weoffersalessupportandcostefficientcablemanagementprogramsaswell.Alltheseeffortshaveproventobeeffectivein engaging closer tieswith our customerswhile at the same time enhancing our operationalefficiencyandprofitmargins.

Awards and Recognitions

Asanextrabonus,wereceivedseveralawardsthisyear.InFebruary2008,BHGLOBALwasbestowedtheSilverAwardfortheBestInvestorRelationsforCompaniesunderS$500millionmarketcapitalization.InSeptember2008,weweredelighted tobeselectedasoneof the top200“BestUnderABillion”enterprisesbyForbesAsiaforthesecondconsecutiveyear.InNovember2008,webecametheonlymarinecompanytoemergeasoneofthe14winnersinthePromisingBrandsCategoryattheSingaporePrestigeBrandAwards2008(“SPBA”)inrecognitionofourbrandinginitiatives.Wefeltveryhonoredwith these awards as they marked our achievements towards greater corporate transparency, betterinvestor communication and branding efforts. We believe these attributes differentiate us from ourcompetitors.Theawardsshowthatweareheadingintherightdirection.

In addition to that, the Group has also been chosen as one of the Best Performers in ST MarineAnnualSuppliers’PerformanceEvaluation inNovember2008,andwillbeawardedprivilegesunderthe Preferred Suppliers’ Program. The recognition is encouraging especially in our quest to establishourselvesasacomprehensivesupplychainsolutionproviderinsteadofameredistributor.Webelieveinbecomingalongtermpartnertoourcustomersascanbeseenfromourbrandpromise–Availability,ReliabilityandValuedPartner.

Business Prospects and Outlook

FY2009willbeachallengingyear.Inthelightoftheglobalfinancialandeconomicturmoil,theshippingindustryisexperiencingslowdownintheordersfornewvesselsintheregioninrecentmonths.However,asthenumberofvesselsinthemaritimeindustryhassignificantlyincreasedoverthepastfewyears,thedemandinshiprepairandconversionprojectsisexpectedtocushionthedeclineinnewshipbuildingorders. This is expected to translate into sustainable demand for theGroup’s quality marine cables,lightingequipmentandaccessories.

ByleveragingonthestrongnetcashpositionofS$8.1million,BHGLOBALiswellpositionedtotakeadvantageofopportunitiesforsynergisticacquisitionsregionallyinstrategicmarketssuchasSingapore,Middle East and PRC.We will continue to actively explore potential strategic partners that wouldcomplementtheGroup’scorebusinessasawhole.

Nevertheless,theoverallstrategyforFY2009wouldbeprudentandcautiousinthebestinterestoftheGroupandshareholders.

Heartfelt appreciation

Lastbutnotleast,onbehalfoftheBoardofDirectors,Iwouldliketotakethisopportunitytoexpressmygratitudetothemanagementteamandallourstafffortheirunwaveringsupportanddedication;andtoourcustomers,suppliers,bankersandbusinesspartners for theircontinuousconfidenceandfinally, toourshareholdersforputtingtheirtrustinus.Thankyou!

Mr Alvin Lim Hwee HongExecutive Chairman

fiNaNCial review

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TOP-LINE PERFORMANCETheGroup’srevenuehassteadilyincreasedby15%fromS$81.9millioninFY2007toS$94.6millioninFY2008.Themain revenuedriverwas themarineelectricalequipmentsegment,whichcontributed91%of theGroup’s revenue.Thiswas in linewithBHGLOBAL’spersistent focuson itscorebusinessofmarinecablesandaccessories,whichrodeontheincreasedmomentumofrig-building,shipbuildingandshipconversionactivitieswithin theregionandcontributedoverS$69millioninrevenue.For therelatively smaller marine consumables segment, revenue grewmarginally by 9% to S$8.8million inFY2008due tomoreorders secured from shipchandlersand shipyards’MRO (Maintenance,RepairandOverhaul)businessduringtheyear.

As part of our continuous effort to secure more sales outside Singapore, the overseas revenue hassignificantly increasedby47%toS$16.5million inmarketssuchasSouth-EastAsia, theMiddleEastandEastAsia,representing17%oftotalrevenue.

GROSS PROFITTheGroup reportedanoverall increaseof10% toS$36.6million ingrossprofit for FY2008due tohigherturnover.However,theincreasewaspartiallyoffsetbyaslipinmarginfrom41%inFY2007to39%inFY2008duetothestrengtheningofUSDandvolatilityofcopperpricesduringtheyear.

OPERATING ExPENSESTheGroup’soperatingexpensesmainlycomprisedmarketingandadministrativeexpenses.

Theseexpenses increased fromS$12.1million inFY2007toS$13.4million inFY2008,which is inlinewiththeincreaseinrevenueandalsoduetoincreaseinstaffstrengthandhigherpersonnelrelatedcosts,depreciationandpropertyrelatedexpenses.

FINANCE COSTSThefinancecostsfortheGroupdeclinedfromS$181,000inFY2007toS$155,000inFY2008,asaresultofrepaymentofbankborrowingsduringtheyear.

INCOME TAxThehigherincometaxisinlinewiththehigherprofitbeforetaxfortheyear.

NET PROFITNetprofitincreasedby10%toS$19.2millioninFY2008andisinlinewiththegrowthinrevenue.

DIVIDENDAspartoftheGroup’scontinuouspracticetoexpressappreciationforshareholders’supportespeciallyin current times of difficulty, the Board is pleased to reward shareholderswith a first and final cashdividendof1.2centsperordinaryshare(one-tiertaxexempt).

HEALTHy BALANCE SHEETBHGlobalmaintainedahealthynetcashpositionofS$8.1millionasat31December2008.

Inventoriesincreased$5.1millionfrom$35.2millioninFY2007to$40.3millioninFY2008tosupportthe increase in turnover. Inventory turnoverdays improved from265days inFY2007to254days inFY2008duetobetterinventorymanagementandcontrol.

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ANNUAL REPORT 2008

TradereceivableshaveincreasedinlinewithrevenuetoS$23.8millionandtradereceivablesturnoverdayshaveimprovedfrom98daysinFY2007to92daysinFY2008,asaresultoftightercontrolovercollectionofreceivables.

The decrease in other receivables is due to reclassification of a deposit paid in FY2007 for theacquisitionofanewpropertytofixedassetsinFY2008.

Theincreaseintradepayablesisduetohigherpurchasestosupportthegrowthinrevenue.

Theincreaseinotherpayablesisduetohigherprovisionofpersonnel-relatedcostsandretentionmoneyheldfortheadditionsandalterationcostsofanewproperty.

Thedecreaseinbankborrowingsisduetorepaymentofshort-termloansduringtheyear.

OUTLOOkSinceFY2008,thecurrentfinancialmeltdownhasimpactedmanyindustriesacrosstheglobe,includingtheshippingindustry.Demandintheordersfornewvesselsintheregionhasweakenedovertherecentmonths.Amidstconcernsover recentnewsofordercancellationsaffectingmajor industryplayers, theGroupexpectsthatthecontractsonhandwillcontinuetokeepshipyardsbusyinthenext2to3years.Ontopof that, theGrouphasseenrecurringdemandfor itsproductsandservicesinshiprepairandconversionprojects,andsuchtrendisexpectedtocontinuewithinthenearterm.

BasedontherecentstatisticsbytheMinistryofTransport,Singaporehasreporteda7.1%increaseincontainerthroughput,whichtranslatedintoanaggregateofcloseto30millionTEUsinFY2008.ThishasstrengthenedsomewhatSingapore’sprominenceasoneofthemostattractivehubportsintheregion.

Despitetheuncertaintiesintheoutlookofmaritimeindustryandchallengesfromthevolatilematerialpricesand foreignexchange fluctuations, theGroupbelieves that itsestablishedcompetitiveedge,strategicmarketpositioningandstrongbalancesheetwillhelptoweatherthroughtheeconomiccrisis.

TheGroupmaintainsacautiousoutlookforthenext12months.

BoarD of DireCtorS

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ALVIN LIM HWEE HONG – ExECUTIVE CHAIRMANAlvin Lim Hwee Hong is our Executive Chairman and has been aDirectorofourCompanysinceApril2004.Hehasoverallresponsibilityfor the day-to-day operations of our Group. He is also responsiblefor the strategic and business development of our Group. Alvin LimHwee Hong has more than 20 years of working experience, mostof which is related to the marine electrical supply industry. He hasin-depth knowledge of the supply of marine electrical products andhas an extensive network of contacts in this industry. Prior to joiningour Company, Alvin Lim Hwee Hong was the managing director ofBengHuiElectricTradingPteLtd(“BHET”)from1987to2003.Since1994,hehasbeenanexecutivedirectorofSanshinMarine (S.E.A.)PteLtd(“SMSEA”).HewasasalesexecutiveofGuanHupElectrical&HardwarePteLtdfrom1985to1987.

VINCENT LIM HUI ENG – CHIEF ExECUTIVE OFFICERVincentLimHuiEngisourChiefExecutiveOfficerandhasbeenaDirectorofourCompanysinceApril2004.HeisresponsibleforoverseeingthesalesandprocurementfunctionswithinourGroup.VincentLimHuiEngisalsoinchargeofourGroup’sbusinessdevelopmentactivities.Hehasmorethan20yearsofworkingexperience,allofwhichhasbeeninthemarineelectricalsupplyindustry.PriortojoiningourCompany,hewasanexecutivedirectorofBHETfrom1987to2003.Since1994,VincentLimHuiEnghasbeenanexecutivedirectorofSMSEA.

PATRICk LIM HUI PENG – CHIEF OPERATING OFFICERPatrick Lim Hui Peng is our Chief Operating Officer and has beena Director of our Company since April 2004. He is responsible foroverseeingourGroup’sshipbuildingproject tenders.Healsosharestheresponsibility of overseeing the sales and procurement functions of ourGroupwithVincentLimHuiEng.Hehasmorethan20yearsofworkingexperience,ofwhichabout15years is related to themarineelectricalsupply industry. Prior to joining our Company, he was an executivedirectorofBHETfrom1993to2003.Since1994,PatrickLimHuiPenghasbeenanexecutivedirectorofSMSEA.HewasatechnicianwiththeRepublicofSingaporeNavyfrom1986to1992.

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ANNUAL REPORT 2008

LOH WENG WHyELohWengWhye was appointed as an Independent Director of ourGroupon3August,2005.HeisaveteranininfrastructuredevelopmentandenergybusinessinSingaporeandtheregion,withover35yearsofexperienceinseniorandcorporate-levelappointmentswiththecivilservice,government-linkedcompaniesandtheprivatesector.UnderthePublic Utilities Board, he headedGeneration Projects responsible forthe management and commissioning of power station projects worthmore than S$3 billion. Hewas also the foundingGeneralManager(Projects)ofTuasPowerLtd.MrLohwasformerlyPresidentofSTEnergyPte Ltd andSembCorp Energy Pte Ltd.HewasappointedAdvisor toGreenDotCapital,aninvestmentandholdingcompanyunderTemasekHoldings.Currently,MrLohsitsontheboardsoffourSGXmainboard-

listedcompanies.HewasappointedSeniorAdvisorbyYTLPowerInternationalforthebiddingforthethreeSingaporegencosandtheS$3.8billionacquisitionofPowerSerayaLtd.Healsoholdsadvisoryappointmentsinexternalcouncilsandinstitutionsoftertiaryeducation.HoldingMSc.(IndustrialEng.)andBEng.(Mechanical)degrees, he isa Professional Engineer (Singapore),aMemberof theSingaporeInstituteofDirectorsandwaselectedaFellowoftheInstitutionofEngineers,Singaporein1995.

DAVID CHIA TIAN BINDavidChiaTianBinwasappointedasanIndependentDirectorofourGroup on 3 August 2005. He is currently a director of AXIA EquityPte. Ltd. which provides business advisory services to companiesin Singapore and the region. Prior to this and since 1990, he wasactively involved in the private equity and venture capital industry inAsia as a director of an investment advisory firm engaged in directinvestmentsintheregion.From1980to1990,MrChiawasengagedin providing audit and financial consulting services in Singapore and HongKongwithaninternational firmofaccountants.MrChiaisalsoan independentdirectoron theboardsofAvaplas Limitedand JasperInvestmentsLimited.MrChiaholdsaBachelorofAccountancy(Honours)fromtheNationalUniversityofSingapore.HeisaFellowoftheInstituteofCertifiedPublicAccountantsofSingapore.

WINSTON kWEk CHOON LINWinstonKwekChoonLinwasappointedasanIndependentDirectorofourGroupon3August2005.HeiscurrentlyapartnerinthelawfirmofRajah&Tann.Specialisinginadmiraltyandshippinglaw,WinstonKwekChoonLinisexperiencedinmaritimeissues.Since2000,hehasbeen nominated by various established legal publications as one oftheleadinglawyersintheregion,especiallyinareasofshippingandmaritimelaw.WinstonKwekChoonLingraduatedwithaBachelorofLaw(Honours)fromtheNationalUniversityofSingaporein1990andwascalled to theSingaporeBar inMarch1991.Since2003,he isalsoAdjunctAssociateProfessor in theFacultyofLawat theNationalUniversityofSingapore.

Senior ManageMent

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Benson Loh Kuan Hwee came on board as a Sales Director in 2007 to reinforce BH GLOBAL’s position in the Industrial, Infrastructure Development and on-shore OGP projects within ASEAN countries. Benson Loh Kuan Hwee has been recognized as a commercially versatile & tenacious Sales Developer & Marketer in the Singapore Electrical Supply Chain-wholesalers-distribution channels especially in the niche products of Low Voltage Neoprene rubber cables + weather-proof plugs/sockets/receptacles/flood-lights for Temporary Power Supplies. Since 1985, he acquired industrial purchasing and international business trading experience while working for German electrical powerhouse AEG and Rittal Pte Ltd and eventually run his successful trading business under B&C Pte Ltd which was acquired by BH GLOBAL in 2007.

1 2 3Keegan Chua Tze Wee is our Chief Financial Officer and is responsible for all aspects of financial planning, financial budgeting and control matters. Keegan Chua Tze Wee has about 15 years of experience in accountancy, audit and finance. Prior to joining our Group in December 2006, he had assumed auditing, finance and accounting positions in various accounting firms and an SGX mainboard-listed company. Keegan Chua Tze Wee obtained his Bachelor of Accountancy (Honours) degree from The Nanyang Technological University in 1994 and is a member of the Institute of Certified Public Accountants of Singapore.

Jonathan Wong Teck Fatt joined our Group in October 2007 as Regional Marketing Manager Asia-Pacific to reinforce the Groups global business development & management with our valued product principals and export key accounts. An industry veteran with 27 years of proven expertise in the arena of industrial procurement, manufacturing, logistics, customer service & business administration with exceptional technical competency in the field of specialty electric cables for the marine offshore upstream and downstream energy industries. Given the executive accountability for international corporate marketing, he is assigned to develop strategic alliances with OGP owners and EPCC fabricators for frame supply/support agreements, vendor/ product approvals and MRO businesses with reseller-distributor partnerships. Since 1991-2005, he was Country Manager Singapore for Pirelli Cables; a world renowned Cable brand which was subsequently acquired by Goldman Sachs and renamed Prysmian Cables in 2006, which he assumed the Trade & Installers business portfolio for ASEAN.

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ANNUAL REPORT 2008

Johnny Lim Huay Hua is our Director of Operations sinceApril 2004. He is responsiblefor managing the logistics anddistribution functions within ourGroup. Johnny Lim Huay Huahas about 17 years of workingexperience, of which about 14years is related to the marineelectricalsupplyindustry.Prior tojoiningourCompany,JohnnyLimHuayHuahasbeenanexecutivedirector of BHET from 1993 to2003. Since 1994, he was anexecutive director of SMSEA. In1991, he was an employee ofBHETin-chargeoflogistics.

Lee Ka Meng is a Director ofYorkshireMarine&Offshore(S)PteLtd (YMO), our subsidiary, sinceOctober2005.Heisresponsibleforthemarketingandprocurementfunctions as well as the dailyoperationsofYMO.Withcloseto40 years of working experienceintheelectricalengineeringfield,he is responsible for building up YMO’s relationship withcustomers and suppliers. Prior tojoining our Group, Mr Lee wasrunninghisowncompanytradingsimilar products as the Group.He had close to 20 years of in-depth experience with reputablecompanies like Behn Meyer &CoPte Ltd,ASEAPte Ltd,UnitedMotorWorksPteLtd,etc.MrLeewas one of the pioneer traineesof and had extensive training,bothlocalandoverseas,withtheRepublicofSingaporeNavy.

Eileen Lim Chye Hoon is our Director ofHuman ResourceandAdministration sinceApril2004.She is responsible for overseeing humanresourceandadministrationmatters. Eileen Lim Chye Hoonhas more than 20 years ofworkingexperienceandhasbeenin-charge of finance, personnelandadministrativefunctions.PriortojoiningourCompany,shewasan executive director of BHETfrom1998to2003.From1988to 1998, shewas an employeeof BHET in-charge of accountingmatters. She held theposition ofan accounts clerk of Guan HupElectrical&HardwarePteLtdfrom1982to1988.

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GeographicalSegment 2008 2007 2006 2005 2004Revenue S$’000 S$’000 S$’000 S$’000 S$’000

Singapore 78,058 70,671 49,382 24,297 21,081South-EastAsia 7,314 3,839 3,971 1,982 1,218EastAsia 5,049 3,768 2,438 1,240 642 MiddleEast 2,772 2,194 1,568 1,460 1,360Other 1,364 1,398 1,564 1,308 250

94,557 81,870 58,923 30,287 24,551

SalesBreakdown 2008 2007 2006 2005 2004byProduct S$’000 S$’000 S$’000 S$’000 S$’000

MarineElectricalEquipment 85,760 73,817 51,485 23,935 19,020MarineConsumables 8,797 8,053 7,438 6,352 5,531

94,557 81,870 58,923 30,287 24,551

Turnover ($’000)

04 05 06 07 08

24,551

30,287

58,923

81,870

94,557

0

10

20

30

40

50

60

70

80

90

100 Net Profit ($’000)

04 05 06 07 08

6,902 6,791

11,215

17,516

19,238

0

2

4

6

8

10

12

14

16

18

20

Shareholder’s Equity ($’000)

04 05 06 07 08

10,500

29,860

38,275

51,311

65,509

0

10

20

30

40

50

60

70

80

0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0 Earnings Per Share* (cents)

04 05 06 07 08

3.292.94

4.014.17

4.58

* EPS for2004havebeencalculatedbasedonpre-invitationordinarysharesof210,000,000shares.

EPS for 2007 have been calculated based onadjusted ordinary shares to 420,000,000 sharesfor140,000,000bonussharesallottedand issuedtoexistingshareholderson21February2008.

Corporate iNforMatioN

15

ANNUAL REPORT 2008

BOARD OF DIRECTORSAlvinLimHweeHong ExecutiveChairmanVincentLimHuiEng ExecutiveDirectorand ChiefExecutiveOfficerPatrickLimHuiPeng ExecutiveDirectorand ChiefOperatingOfficerLohWengWhye LeadIndependent DirectorDavidChiaTianBin IndependentDirectorWinstonKwekChoonLinIndependentDirector

COMPANy SECRETARyPaigeLimMeeFunAmeliaLimAikKun

AUDIT COMMITTEEDavidChiaTianBin (Chairman)LohWengWhyeWinstonKwekChoonLin

NOMINATING COMMITTEEWinstonKwekChoonLin(Chairman)LohWengWhyeVincentLimHuiEng

REMUNERATION COMMITTEELohWengWhye (Chairman)DavidChiaTianBinWinstonKwekChoonLin

RISk MANAGEMENT COMMITTEEAlvinLimHweeHong (Chairman)VincentLimHuiEngKeeganChuaTzeWee

SHARE REGISTRAR AND SHARE TRANSFER OFFICETricorBarbinderShareRegistrationServices(AdivisionofTricorSingaporePte.Ltd.)8CrossStreet#11-00PWCBuildingSingapore048424

AUDITORS AND REPORTING ACCOUNTANTSBakerTillyTFWLCLCertifiedPublicAccountants15BeachRoad#03-10BeachCentreSingapore189677Partner-in-charge:TiangYii*(amemberoftheInstituteofCertifiedPublicAccountantsofSingapore)*Appointedinfinancialyear2005

REGISTERED OFFICE8PenjuruLaneSingapore609189RegistrationNumber:200404900H

16


FINANCIALCONTENTS

17 CorporateGovernanceReport28 Directors’Report31 StatementbyDirectors32 IndependentAuditor’sReport33 ConsolidatedIncomeStatement34 BalanceSheets35 StatementsofChangesinEquity36 ConsolidatedCashFlowStatement38 NotesToTheFinancialStatements67 StatisticsofShareholdings69 NoticeofAnnualGeneralMeeting ProxyForm

Corporate GoverNaNCe report

17

ANNUAL REPORT 2008

The Group is committed to good corporate governance. The Group hassubstantivelycompliedwiththerecommendationsofthenewCodeofCorporateGovernance2005(“Code”)througheffectiveself-regulatorycorporatepracticestoprotectandenhance the interestsof its shareholders.This reportdescribestheGroup’scorporategovernanceprocessesandactivitiesinconjunctionwiththe Singapore Securities Exchange Trading Limited’s requirement that issuersdescribe their corporate governance practices with specific reference to theCodeintheirannualreports.

Principle 1: The Board’s conduct of its Affairs

TheBoard’sprincipalfunctionsare:

1. approving theGroup’sstrategicplans,keyoperational initiatives,majorinvestmentsanddivestmentsandfundingrequirements;

Guideline 1.1 of the

Code: The Board’s role

2. reviewing theperformanceof thebusinessandapproving thereleaseofthefinancialresultsoftheGrouptoshareholders;

3. providingguidanceintheoverallmanagementofthebusinessandaffairsoftheGroup;

4. overseeing theprocesses for internalcontrol, riskmanagement, financialreportingandcompliance;and

5. approving the recommended framework of remuneration for the Boardand key executives as may be recommended by the RemunerationCommittee.

TheBoardhasdelegatedcertainspecificresponsibilitiestofour(4)Committees,namely, the Audit Committee (“AC”), Nomination Committee (“NC”),Remuneration Committee (“RC”) and Risk Management Committee (“RMC”).Moreinformationonthemissetoutbelow.TheBoardacceptsthatwhiletheseCommitteeshave theauthority toexamineparticular issuesandwill report totheBoardtheirdecisionsandrecommendations,theultimateresponsibilityforthefinaldecisiononallmatterslieswiththeentireBoard.


Code: Disclosure on

delegation of authority

by Board to Board

Committees

TheBoardmeetsatleastfour(4)timesinayear.Thefrequencyofmeetingsandtheattendanceofeachdirectorateveryboardandboardcommitteemeetingaredisclosedonpage26inthisReport.


Code: Board to meet

regularly

MatterswhicharespecificallyreservedfordecisionbytheBoardincludethoseinvolvingbusinessplans,materialacquisitionsanddisposalsofassets,corporateor financial structuring, corporate strategy, share issuances, dividends, andshareholdermatters.


Code: Matters requiring

Board approval

Alldirectorsare regularlyupdatedbymanagementon the industry,business,operationsandcorporategovernancepracticesof theGroup.TheCompanywill,fromtimetotime,organiseseminarsandbriefingsessionsfortheDirectorsto keep pace with financial, corporate governance, regulatory and otherchanges. All directors are members of the Singapore Institute of Directors(“SID”),andeligible to receiveupdatesand training fromSID.Directorsandseniormanagementareencouraged toattendSIDcoursesand subscribe forjournalupdatesonmattersoftopicalinterest.

Guideline 1.6 and 1.8

of the Code: Directors

to receive appropriate

training


18


A formal letter is provided to each executive director upon his appointment,settingoutthedirector’sdutiesandobligations.


Code: Formal letter to

be provided to directors

setting out duties and

obligations

Principle 2 : Board Composition and Guidance

The Board currently comprises six (6) directors of whom three (3) are non-executive and independent directors. The Board is supported by variouscommittees, namely, theNC, theAC, theRCand theRMCwhose functionsaredescribedbelow.TheBoardhasbeenabletoexerciseobjectivejudgmentindependentlyfrommanagementandnoindividualorsmallgroupofindividualsdominatethedecisionsoftheBoard.

Guideline 2.1 of

the Code: One-third

of directors to be

independent

TheBoard isof theopinion that,given the scopeandnatureof theGroup’soperations, thepresentsizeof theBoardisappropriateforeffectivedecisionmaking.TheBoardismadeupofdirectorswhoarequalifiedandexperiencedinvariousfieldsincludingbusinessandmanagement,accountingandfinance,engineering and industry, and legal services. The profiles of each of thedirectorsareprovidedinpages10and11ofthisAnnualReport.Accordingly,thecurrentBoardcomprisespersonswhoasagroup,havecorecompetenciesnecessarytoleadandoverseetheCompany.

Guideline 2.3and

2.4 of the Code:

Board to determine its

appropriate size and

comprise directors with

core competencies

Thenon-executivedirectorsareinvolvedinreviewingthecorporatestrategies,businessoperationsandpracticesoftheGroup,andalsoinvolvedinreviewingandmonitoringtheperformanceofmanagementinachievingagreedgoalsandobjectives.Inaddition,thenon-executivedirectorsmeettodiscussandreviewtheGroup’saffairsonanadhocbasisduring theyearwithout thepresenceofmanagement.

Guideline 2.5 and

2.6 of the Code: Role

of NEDs and regular

meetings of NEDs.

Principle 3: Chairman and Chief Executive Officer

Mr Alvin Lim Hwee Hong is the Executive Chairman of the Board and MrVincentLimHuiEngwastheManagingDirectoroftheCompany,re-designatedastheChiefExecutiveOfficeroftheCompanyon24January2008.MrAlvinLimHweeHongandMrVincentLimHuiEngaresiblings.

Guideline 3.1 of

the Code: Chairman

and CEO should be

separate persons

TherolesoftheChairmanandChiefExecutiveOfficerareseparatedandtheirresponsibilities are clearly defined to ensurea checkandbalanceof powerandauthority.

The Chairman will, amongst other responsibilities, lead the Board, ensureeffectivecommunicationwithshareholders,encourageconstructiverelationshipbetween the Board andmanagement, as well as between Board members,and promote high standards of corporate governance. The Chief ExecutiveOfficer manages the business of the Company and implements the Board’sdecisions.


Code: Chairman’s role

In view of the sibling relationship between the Chairman and the ChiefExecutiveOfficer,theBoardhasappointedMrLohWengWhyeastheLeadIndependentDirectorinFebruary2007.


Code: Appointment of

LID where Chairman

and CEO are related

by close family ties


19

ANNUAL REPORT 2008

Principle 6: Access to Information

The Board is providedwith adequate and timely information prior to Boardmeetingsandonanon-goingbasis.Boardpapersaredistributedinadvanceof eachmeeting to directors. TheCompany circulates copies of theminutesofthemeetingsofallBoardCommitteestoallmembersoftheBoardtokeeptheminformedofon-goingdevelopmentswithintheGroup.

Guideline 6.1 and

6.2 of the Code:

Management obliged

to provide Board with

adequate and timely

information and include

background and

explanatory information

ThedirectorshaveseparateandindependentaccesstotheCompany’sseniormanagement and the Company Secretary at all times. Should the directors,whetherasagroupor individually, require independentprofessionaladvice,such professionals (who will be selected with the approval of the ExecutiveChairman or the Chairman of the Committee requiring such advice) will beappointedattheCompany’sexpense.

Guideline 6.3 and

6.5 of the Code:

Directors to have

access to Company

Secretary; role of

Company Secretary to

be clearly defined and

procedure for Board

to take independent

professional advice at

company’s expense

The Company Secretary attends the Company’s Board, AC, RC and NCmeetingsandisresponsibleforensuringthatBoardproceduresarefollowed.The Company Secretary’s role is also to advise the Board on governancemattersandtoassistseniormanagementinensuringthattheCompanycomplieswithrulesandregulationswhichareapplicabletotheCompany.

BOARD COMMITTEES

Principle 7: Remuneration Matters / Procedures for Developing Remuneration Policies

TheRemunerationCommittee iscomprisedentirelyofnon-executivedirectors,allofwhom,includingtheChairman,areindependent:

Guidelines 7.1 and

7.2 of the Code:

RC to consist entirely

of NEDs; majority,

including RC chairman,

must be independent

& RC to recommend

remuneration of directors

and CEO, and to

review remuneration of

senior management

MrLohWengWhye(Chairman)MrDavidChiaTianBin(Member)MrWinstonKwekChoonLin(Member)

The RC is responsible for ensuring a formal and transparent procedure fordeveloping an appropriate executive remuneration policy and a competitiveframeworkandwillrecommendtotheBoardforendorsement,aframeworkofremuneration which should cover various aspects of remuneration, includingbutnotlimitedto,directors’fees,salaries,allowances,bonuses,andbenefits-in-kind, and the specific remuneration packages for each executive directorand key executive in order to retain and motivate each of them to run theGroupsuccessfully.Externalconsultants’advicewillbesoughtwhenamajorremunerationreviewisconducted.


20


Principle 8: Level and Mix of Remuneration

In recommending a remuneration framework, the RC takes into account theperformanceoftheGroupaswellasthedirectorsandkeyexecutives,aligningtheir interests with those of shareholders and linking rewards to corporateand individual performance as well as industry benchmarks. The review ofremuneration packages takes into consideration the longer term interestsof the Group. It covers various aspects of remuneration including salaries,fees, allowances, bonuses, perks and benefits-in-kind. The Committee’srecommendationsarebasedonmanagement’sreportsandrecommendations,made in consultation with the Chairman of the Board and submitted forendorsement to theentireBoard.Thepaymentofdirectors’ fees is subject totheapprovalofshareholders.Factorssuchas levelofcontribution,effortandtime spent, and responsibilitiesand leadershipof the non-executivedirectorsareconsideredwhendeterminingtheleveloftheirfees.

Guideline 8.1 of

the Code: Package

should align executive

directors’ interests with

shareholders’ interests

Guideline 8.2

Remuneration to

consider contribution,

effort, time spent and

responsibilities

Theservicecontracts for theExecutiveChairmanandChiefExecutiveOfficerare for a fixed period of three (3) yearswith effect from 1October 2005,however, the Board has extended their service contracts until 31 December2008 while a review was being conducted by an external professionalremunerationconsultant.Subsequently,on1January2009,theCompanyhasenteredintonewservicecontractswiththeExecutiveChairman,ChiefExecutiveOfficerandChiefOperatingOfficer.TheRCisresponsibleforreviewingthecompensationcommitments in theeventofanearly termination,asstipulatedintheservicecontracts.

Guideline 8.3 of

the Code: Fixed

appointment period for

executive directors, RC

to review compensation

for early termination

Principle 9: Disclosure on Remuneration

Theremunerationofthedirectorsforthefinancialyearareasfollows:

Name of Directors SalaryBonus/

Profit-SharingFees

Guideline 9.1 and

9.2 of the Code:

Disclosure of directors’

remuneration and top

5 executives of the

Company in bands of

$250,000

Below S$250,000

MrLohWengWhye 100%

MrDavidChiaTianBin 100%

MrWinstonKwekChoonLin 100%

S$500,000 to S$749,999

MrPatrickLimHuiPeng 43% 50% 7%

S$1,500,000 to S$1,749,999

MrAlvinLimHweeHong 18% 79% 3%

MrVincentLimHuiEng 18% 79% 3%


21

ANNUAL REPORT 2008

TheremunerationofMrAlvinLimHweeHong,ourExecutiveChairmanandMrVincentLimHuiEng,ourChiefExecutiveOfficer,isgovernedbytheirrespectiveservicecontractsenteredintowiththeCompanyon1stAugust2005anddulydisclosed in the Company’s IPO Prospectus. The Board has extended theirservicecontractsuntil31December2008whileareviewwasbeingconductedbyanexternalprofessionalremunerationconsultant.Subsequently,on1January2009,theCompanyhasenteredintonewservicecontractswiththeExecutiveChairman,ChiefExecutiveOfficerandChiefOperatingOfficer.

The remunerationof theTopSix (6)KeyExecutives for the financialyearareasfollows:

Name of key Executives Salary Bonus Fees

Below S$250,000

Mr.LeeKaMeng 68% 28% 4%

Mr.BensonLohKuanHwee 72% 28%

Mr.JonathanWongTeckFatt 82% 18%

Mr.KeeganChuaTzeWee 72% 28%

S$250,000 to S$499,999

Mr.JohnnyLimHuayHua 65% 27% 8%

Ms.EileenLimChyeHoon 65% 27% 8%

MrJohnnyLimHuayHuaandMsEileenLimChyeHoonaresiblingsofMrAlvinLimHweeHong,MrVincentLimHuiEngandMrPatrickLimHuiPeng.

Principle 4 : Board MembershipPrinciple 5 : Board Performance

TheNominatingCommitteecomprisesthefollowingDirectors:-

MrWinstonKwekChoonLin(Chairman)MrLohWengWhye(Member)MrVincentLimHuiEng(Member)


Code: NC to comprise

at least three directors,

majority of whom are

independent; chairman

not associated with a

substantial shareholder

Save for Mr Vincent Lim Hui Eng, the other members of the NC are non-executiveandindependentdirectors.

The NC makes recommendations to the Board on all board appointments.It is responsible for re-nomination of directors at regular intervals taking intoconsideration thedirectors’contributionandperformanceatBoardmeetings,includingattendance,preparednessandparticipation.


22


The independence of each director has been reviewed annually by theNCbased on theCode’s definition ofwhat constitutes an independent director.Basedonthisreview,theNChasconfirmedtheindependenceofthedirectorsconcerned.


Code: NC to determine

directors’ independence

annually

TheNCisalsooftheviewthatthedirectorsareabletoandhaveadequatelycarriedout theirdutiesasdirectorsof theCompany.AsBoardmeetingsareplannedandscheduledwell inadvanceof themeetingdates,directorshavebeenabletoattendalmostalloftheBoardandCommitteemeetings.

PursuanttotheArticlesofAssociationoftheCompany:

(a) one third of the directors shall retire from office at the AnnualGeneralMeeting;

(b) directorsappointedduring thecourseof theyearwill submit themselvesforre-electionatthenextAnnualGeneralMeetingoftheCompany;and

(c) the Chief Executive Officer shall be subjected to retirement and re-appointmentbyshareholders.

TheNChasadoptedguidelinesforannualassessmentof theeffectivenessoftheBoardasawholeandofthecontributionofeachindividualdirectortotheeffectivenessoftheBoardandhasperformedthenecessaryassessmentforthefinancialyear.

Principle 10 : Accountability of the Board and Audit

TheBoardisresponsibleforprovidingabalanceandunderstandableassessmentoftheCompany’sperformance,positionandprospects,includinginterimandother price sensitive reports. Management also provides to members of theBoardannualbudgetsandtargets,andmonthlymanagementaccounts.

Guideline 10.1 &

10.2 of the Code:

Board’s responsibility

to provide balanced,

understandable

assessment of

Company’s performance

and position on interim

basis and management

accounts

Principle 11 : Audit Committee

TheAuditCommitteecomprises:

MrDavidChiaTianBin(Chairman)MrLohWengWhye(Member)MrWinstonKwekChoonLin(Member)


23

ANNUAL REPORT 2008

The Committee members are all non-executive and independent directorscapable of discharging their responsibilities appropriately. The memberscollectivelyhavemanyyearsofexperienceinaccountingandaudit,businessandfinancialmanagement,lawandengineering.TheBoardconsidersthatthemembersoftheACareappropriatelyqualifiedtodischargetheresponsibilitiesoftheAC.

Guideline 11.1 and

11.2 of the Code:

AC should comprise at

least three directors,

all non-executives and

the majority of whom,

including the chairman,

are independent and

Board to ensure AC

members are qualified

The AC has explicit authority to investigate any matter within its terms ofreference.Ithasfullaccesstoandtheco-operationofmanagementandthefulldiscretiontoinviteanydirectororexecutiveofficertoattenditsmeetings,andhasreasonableresourcestoenableittodischargeitsfunctionsproperly.


Code: AC to have

explicit authority to

investigate and have full

access to management

and reasonable

resources

TheAChaswrittentermsofreference.Specifically,theACmeetsonaperiodicbasistoperformthefollowingfunctions:


Code: Duties of AC

(a) assisttheBoardofDirectorsintheidentificationandmonitoringofareasofsignificantbusinessriskswiththehelpofinternalandexternalauditors;

(b) review the effectiveness of the financial andaccounting control systemsandmanagementofexposuretofinancialandbusinessrisks;

(c) reviewcompliancewiththeListingManualandtheBestPracticesGuideof the Singapore Exchange Securities Trading Limited and theCode ofCorporateGovernance;

(d) reviewwiththeexternalandinternalauditorstheirrespectiveauditplans,reportsandtheirevaluationoftheGroup’ssystemofriskmanagementandinternalcontrols;

(e) recommend theappointmentofauditorsand to review the levelofauditfees;

Guideline 11.6 of

the Code: AC to

review independence

of external auditors

annually

(f) review the independence of the Company’s auditors on an annualbasis;

(g) reviewtheadequacyoftheinternalauditfunction;

(h) reviewtheGroup’squarterlyandannualreportsandannouncementsbeforetheyaresubmittedtotheBoardforapproval;

(i) reviewtheconsolidatedbalancesheetandincomestatementoftheGroupand other financial statements and other documents accompanying thesameandthereaftertosubmitthesametotheBoardforapproval;and

(j) reviewinterestedpersontransactions.


24


TheAChasreviewedandissatisfiedwith the levelofco-operationrenderedbymanagementtotheexternalauditors,theadequacyofthescopeandqualityoftheiraudits,andtheindependenceandobjectivityoftheexternalauditors.In thecourseofitsreview,theACalsometwiththeexternalauditorswithoutthepresenceofCompany’smanagement.

Guideline 11.5 of

the Code: AC to

meet internal and

external auditors,

without presence of

management, annually

Managementhasput inplaceawhistle-blowingpolicydulyendorsedby theACandapprovedbytheBoardwhereemployeesoftheGroupcanaccesstheappropriatepersontoraiseconcernsaboutpossibleimproprietiesinmattersoffinancialmanagementandreportingorothermatters.


Code: AC to review

arrangements for

staff to raise possible

improprieties to AC

Principle 12: Internal controls

TheRiskManagementCommitteecomprises: Guideline 12.1and

12.2 of the Code: AC

to review adequacy of

financial, operational

and compliance controls

and risk management

policies and Board

to comment on the

adequacy of the internal

controls

Mr.AlvinLimHweeHong (ExecutiveChairman)Mr.VincentLimHuiEng (ChiefExecutiveOfficer)Mr.KeeganChuaTzeWee (ChiefFinancialOfficer)

TheRMCischairedbyMr.AlvinLimHweeHong.

Themainobjectiveof theRMCis toassist theBoardandACtocarryout itsresponsibilitieswithregardtobestcorporategovernancepracticesparticularlywith reference to Compliance, Enterprise Risk Management and Control.Hence,theRMCisempoweredtoreviewmattersrelatingtointernalcontrols,operationaland financialprocessesandproceduresand themanagementofbusinessandenterpriserisks.

TheprimaryresponsibilitiesoftheRMCprimarilyinclude:

(a) identifying,assessingandmanagingtheGroup’srisks;

(b) reviewing the effectiveness of internal controls and implement changeswhererequired;

(c) ensuring compliance with statutory, regulatory requirements and theGroup’spoliciesandprocedures;

(d) promoting awareness of the importance of risk management within theGroup;and

(e) ensuringthatproperaccountingrecordsaremaintainedandthatfinancialinformationisreliable.

TheRMCmeetsatleasttwiceayeartoreviewtheinternalcontrols,procedures,enterpriseriskmanagementreportsandotherrelatedmatters.InternalAuditorsaretaskedtoperformindependentreviewsoftheserisksandcontrolstoprovidereasonableassurancetotheBoardandtheACthattherisksandcontrolshavebeenadequatelyaddressedandoperatingeffectively.TheBoardandACareregularlyupdatedontheactivitiesandrecommendationsoftheRMC.


25

ANNUAL REPORT 2008

Inaddition,theAChas,withtheassistanceoftheinternalandexternalauditors,reviewedtheeffectivenessof theGroup’smaterial internalcontrolsrelatingtofinancial,operationalandcompliancecontrolsregularly.Basedonthisreview,theBoard is satisfied that the internalcontrolsof theGroupareadequate tosafeguardshareholders’investmentsandtheGroup’sassets,aswellasensuretheintegrityofitsfinancialstatements.

Principle 13: Internal audit

The Company outsourced its internal audit function to JF Virtus Pte Ltd, anindependent assurance service provider (“IA”) which specialises in riskmanagementandinternalauditing.IAreportsdirectlytotheACChairmanonaudit matters, and to the Executive Chairman or Chief ExecutiveOfficer onadministrativematters. TheAC is satisfied that theappointed internalauditormeets the standards set by internationally recognised professional bodiesincludingtheStandardsfortheProfessionalPracticeofInternalAuditingsetbyTheInstituteofInternalAuditors.

Guideline 13.2 of

the Code: IA should

meet standards set

by internationally-

recognised professional

bodies

Theprimaryobjectiveof theinternalaudit is toassure theACandtheBoardthatsoundriskmanagementprocessesandcontrolsareinplaceandoperatingeffectively.

TheACissatisfiedthattheinternalauditfunctionisadequatelyresourcedandwillcomprehensivelycoverthemajoractivitieswithintheGroup.

Guideline 13.1 and

13.3 of the Code:

IA to report to AC

chairman, and CEO

administratively and is

adequately resourced

Principle 14 and 15 : Communications with the Shareholders

(a)CommunicationswithShareholders

TheCompanyhasappointedan investor relationconsultant,FinancialPRPteLtd, to support theGroup in promoting the communicationwith shareholdersandinvestmentcommunity.TheCompanyalsoensuresthattimelyandadequatedisclosureofinformationonmattersofmaterialimpactontheGrouparemadetoshareholdersof theCompany, incompliancewith the requirementssetoutin the Listing Manual of the Singapore Exchange Securities Trading Limitedwithparticular reference to theCorporateDisclosurePolicysetout therein. Inthisrespect,theCompanyhadcommencedin2008,theannouncementofitsresultstoshareholdersonaquarterlybasis.

Guideline 14.1 of

the Code: Company

to regularly convey

pertinent information

(b)GreaterShareholderParticipation

Atgeneralmeetings,shareholdersoftheCompanywillbegiventheopportunitytopresenttheirviewsandtoaskdirectorsandmanagementquestionsregardingtheGroup.Thedirectorsandmanagementwillbepresentatthesemeetingstoaddressanyquestions that shareholdersmayhave.TheexternalauditorswillalsobepresenttoassisttheBoardinaddressingqueriesbyshareholders.

Guideline 15.3 of

the Code: Committee

chairman and external

auditors to be presents

at AGMs


26


The Articles allow a member of the Company to appoint a proxy to attendand vote at general meetings. For the time being, the Board is of the viewthatthisisadequatetoenableshareholderstoparticipateingeneralmeetingsof theCompanyand is notproposing toamend theirArticles toallow votesinabsentia.Separateresolutionsoneachdistinct issueare tabledatgeneralmeetings.

Guideline 15.4 of

the Code: Companies

encouraged to amend

Articles to avoid

imposing limit on

number of proxies for

nominee companies

ATTENDANCE AT BOARD & COMMITTEE MEETINGS

Thenumberofdirectors’andothercommittees’meetingsandtherecordofattendanceofeachdirectorduringthefinancialyearended31December2008issetoutbelow:

Name Board Audit CommitteeRemuneration

CommitteeNominating Committee

No. ofMeetings

Held

No. ofMeetingsAttended

No. ofMeetings

Held


No. ofMeetings

Held


No. ofMeetings

Held


Mr.AlvinLimHweeHong 4 4 NA NA NA NA NA NA

Mr.VincentLimHuiEng 4 4 NA NA NA NA 2 2

Mr.PatrickLimHuiPeng 4 4 NA NA NA NA NA NA

Mr.LohWengWhye 4 4 4 4 3 3 2 2

Mr.DavidChiaTianBin 4 4 4 4 3 3 NA NA

Mr.WinstonKwekChoonLin 4 4 4 4 3 3 2 2

Note:

MrWinston KwekChoon Lin replacedMr Alvin LimHweeHong as amember of the RemunerationCommitteeon27July2006.


27

ANNUAL REPORT 2008

ADDITIONAL INFORMATION

Dealings in Securities

TheCompanyhasadoptedtheSingaporeExchangeSecuritiesTradingLimited’sBestPracticesGuideapplicableinrelationtodealingsintheCompany’ssecuritiesbyitsofficers.TheCompanyhasinformeditsofficersnot todeal in theCompany’s shareswhilst theyare inpossessionofunpublishedmaterialprice sensitive information and during the period commencing two weeks before quarterly and onemonthbeforefullyear,asthecasemaybe,andendingonthedateofannouncementofsuchfinancialresults.

Material Contracts

Therewerenoothermaterialcontractsentered intoby theCompanyor its subsidiaries, involving theinterestsofanydirector (other thanservicecontractsentered intobetween theexecutivedirectorsandtheCompany)orcontrollingshareholdernorhavesuchothercontractsbeenenteredintosincetheendofthepreviousfinancialyear.

Interested Person Transactions

Therewerenointerestedpersontransactions.

DireCtorS’ report

28


Thedirectorsarepleasedtopresenttheirreporttothememberstogetherwiththeauditedconsolidatedfinancial statementsof theGroup for the financial yearended31December2008and thebalancesheetandstatementofchangesinequityoftheCompanyasat31December2008.

1 DIRECTORSThedirectorsinofficeatthedateofthisreportare:

AlvinLimHweeHong (ExecutiveChairman)VincentLimHuiEng (ExecutiveDirectorandChiefExecutiveOfficer)PatrickLimHuiPeng (ExecutiveDirectorandChiefOperatingOfficer)LohWengWhye (LeadIndependentNon-executive)WinstonKwekChoonLin (IndependentNon-executive)DavidChiaTianBin (IndependentNon-executive)

2 ARRANGEMENT TO ENABLE DIRECTORS TO ACqUIRE BENEFITSNeither at the end of nor at any time during the financial yearwas theCompany a party toany arrangement whose objects are, or one of whose objects is, to enable the directors oftheCompany toacquirebenefitsbymeansof theacquisitionofshares inordebenturesof theCompanyoranyotherbodycorporate.

3 DIRECTORS’ INTEREST IN SHARES OR DEBENTURES(a) The directors of the Company holding office at the end of the financial year had no

interestsinthesharesordebenturesoftheCompanyandrelatedcorporationsasrecordedintheRegisterofDirectors’ShareholdingskeptbytheCompanyunderSection164oftheCompaniesAct,Cap.50,exceptasfollows:

Number of ordinary sharesHoldings registered in name of

director/nomineeHoldings in which a director is

deemed to have an interestAt1.1.2008 At31.12.2008 At1.1.2008 At31.12.2008

The CompanyAlvinLimHweeHong 2,552,460 3,828,690 188,552,400 282,828,600VincentLimHuiEng 2,552,460 3,828,690 188,552,400 282,828,600PatrickLimHuiPeng 2,552,460 3,828,690 188,552,400 282,828,600LohWengWhye – 100,000 – –

Immediate and Ultimate Holding CompanyBeng Hui Holding (S) Pte Ltd

AlvinLimHweeHong 420,000 420,000 – –VincentLimHuiEng 420,000 420,000 – –PatrickLimHuiPeng 420,000 420,000 – –

DireCtorS’ report

29

ANNUAL REPORT 2008

3 DIRECTORS’ INTEREST IN SHARES OR DEBENTURES (CONT’D)Thedeemed interestsofAlvin LimHweeHong,Vincent LimHuiEngandPatrick LimHuiPengin thesharesof theCompanyarebyvirtueof their shareholdings inBengHuiHolding (S)PteLtd.At31December2008,BengHuiHolding (S) Pte Ltd holds282,828,600 shares in theCompany.

ByvirtueofSection7(4)of theCompaniesAct,Cap.50, thedirectorsAlvinLimHweeHong,VincentLimHuiEngandPatrickLimHuiPengaredeemedtohaveaninterestinsharesheldbytheCompanyinallofitswholly-ownedsubsidiaries.

(b) Thedirectors’interestsinthesharesoftheCompanyat21January2009werethesameat31December2008.

4 DIRECTORS’ CONTRACTUAL BENEFITSSince the end of the previous financial year, no director has received or become entitled toreceiveabenefit (other thandisclosedin theconsolidatedfinancialstatements)byreasonofacontractmadebytheCompanyorarelatedcorporationwiththedirectororwithafirmofwhichheisamember,orwithacompanyinwhichhehasasubstantialfinancialinterest.

5 SHARE OPTIONSNooption to take up unissued shares of theCompanyor its subsidiarieswasgrantedduringthefinancialyear.

Therewere no shares issued during the financial year by virtue of the exercise of options totake up unissued shares of theCompany or its subsidiarieswhether granted before or duringthefinancialyear.

Therewere no unissued sharesof theCompanyor its subsidiaries under optionat the endofthefinancialyear.

6 AUDIT COMMITTEEThemembers of the Audit Committee during the financial year and at the date of this reportare:

DavidChiaTianBin (Chairman)LohWengWhye (Member)WinstonKwekChoonLin (Member)

TheAuditCommitteecarriedoutitsfunctionsspecifiedinSection201BoftheCompaniesAct,the ListingManualand theCodeofCorporateGovernance. The functionsaredetailed in theReportonCorporateGovernance.

TheAuditCommitteeissatisfiedwiththeindependenceandobjectivityoftheexternalauditorsandhasrecommendedtotheBoardofDirectorsthattheauditors,BakerTillyTFWLCL,benominatedforre-appointmentasauditorsoftheCompanyattheforthcomingAnnualGeneralMeeting.

DireCtorS’ report

30


7 INDEPENDENT AUDITOR

The independent auditor, Baker Tilly TFWLCL has expressed its willingness to accept re-appointment.

Onbehalfofthedirectors

AlvinLimHweeHong VincentLimHuiEngDirector Director

2March2009

StateMeNt BY DireCtorS

31

ANNUAL REPORT 2008

IntheopinionoftheDirectors:

(i) thefinancialstatementssetoutonpages33to66aredrawnupsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyandoftheGroupasat31December2008andoftheresults,changesinequityandcashflowsof theGroupandof thechangesinequityof theCompanyforthefinancialyearendedonthatdate;and

(ii) atthedateofthisstatement,therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasandwhentheyfalldue.

Onbehalfofthedirectors

AlvinLimHweeHong VincentLimHuiEngDirector Director

2March2009

iNDepeNDeNt aUDitor’S report to the MeMBerS of

32


BHGLOBALMARINELIMITED

WehaveauditedtheaccompanyingfinancialstatementsofBHGlobalMarineLimited(the“Company”)and its subsidiaries (the “Group”)as setoutonpages33 to66,whichcomprise thebalancesheetsof theGroup and theCompany as at 31December 2008, and the income statement, statement ofchanges in equity and cash flow statement of theGroup and statement of changes in equity of theCompanyforthefinancialyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordancewiththeprovisionsof theSingaporeCompaniesAct,Cap.50(the“Act”)andSingaporeFinancialReportingStandards.Thisresponsibilityincludes:

(a) devising and maintaining a system of internal accounting controls sufficient to provide areasonable assurance that assets are safeguarded against loss from unauthorised use ordisposition;andtransactionsareproperlyauthorisedandthattheyarerecordedasnecessarytopermitthepreparationoftrueandfairprofitandlossaccountandbalancesheetandtomaintainaccountabilityofassets;

(b) selectingandapplyingappropriateaccountingpolicies;and(c) makingaccountingestimatesthatarereasonableinthecircumstances.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. WeconductedourauditinaccordancewithSingaporeStandardsonAuditing.ThoseStandardsrequirethatwecomplywithethical requirementsandplanandperform theaudit toobtain reasonableassurancewhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anaudit involvesperformingprocedures toobtainaudit evidenceabout theamountsanddisclosuresin the financialstatements.Theproceduresselecteddependon theauditors’ judgement, including theassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorsconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthe reasonableness of accounting estimatesmadebymanagement, aswell as evaluating theoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

OpinionInouropinion,

(a) theaccompanyingbalancesheetandstatementofchanges inequityof theCompanyand theconsolidated financial statementsof theGroupareproperlydrawnup inaccordancewith theprovisionsoftheActandSingaporeFinancialReportingStandardssoastogiveatrueandfairviewofthestateofaffairsoftheCompanyandtheGroupasat31December2008andoftheresults,changesinequityandcashflowsoftheGroupandchangesinequityoftheCompanyforthefinancialyearendedonthatdate;and

(b) theaccountingandotherrecordsrequiredbytheActtobekeptbytheCompanyandbythosesubsidiariesincorporatedinSingaporeofwhichwearetheauditorshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

BakerTillyTFWLCLPublicAccountantsandCertifiedPublicAccountantsSingapore

2March2009

CoNSoliDateD iNCoMe StateMeNt

33

ANNUAL REPORT 2008

Forthefinancialyearended31December2008

Group2008 2007

Note $’000 $’000

Sales of goods 94,557 81,870

Cost of sales (57,974) (48,542)

Gross profit 36,583 33,328

Otheroperatingincome 461 320Sellinganddistributionexpenses (9,576) (9,003)Administrativeexpenses (3,804) (3,127)Financecosts 3 (155) (181)

Profit before tax 4 23,509 21,337

Tax expense 6 (4,271) (3,821)

Net profit for the year attributable to equity holders of the Company 19,238 17,516

Earnings per share (EPS) (expressed in cents per share)

–Basic 7 4.58 4.17

–Diluted 7 4.58 4.17

Theaccompanyingnotesformanintegralpartofthesefinancialstatements.

BalaNCe SheetS

34


At31December2008

Group Company2008 2007 2008 2007

Note $’000 $’000 $’000 $’000

Non-current assetsProperty,plantandequipment 8 15,597 6,926 – –Investmentinsubsidiaries 9 – – 10,717 10,717

15,597 6,926 10,717 10,717

Current assetsInventories 40,270 35,240 – –Tradereceivables 10 23,787 22,129 – –Otherreceivables 11 340 414 25,002 22,046Cashandcashequivalents 12 11,352 10,644 199 179

75,749 68,427 25,201 22,225

Total assets 91,346 75,353 35,918 32,942

Non-current liabilitiesBankborrowings 13 1,333 – – –

Current liabilitiesTradepayables 11,591 9,478 – –Bankborrowings 13 1,900 5,348 – –Otherpayables 14 6,696 5,243 3,261 2,923Taxpayable 4,317 3,973 5 5

24,504 24,042 3,266 2,928

Total liabilities 25,837 24,042 3,266 2,928

Net assets 65,509 51,311 32,652 30,014

Share capital and reservesShare capital 15 23,069 23,069 23,069 23,069Accumulatedprofits 42,440 28,242 9,583 6,945

65,509 51,311 32,652 30,014


StateMeNtS of ChaNGeS iN eQUitY

35

ANNUAL REPORT 2008


Share Accumulatedcapital profits Total

Note $’000 $’000 $’000

Group

At1January2007 23,069 15,206 38,275

Netprofitfortheyear – 17,516 17,516

Dividends 19 – (4,480) (4,480)

At31December2007 23,069 28,242 51,311


Dividends 19 – (5,040) (5,040)

At 31 December 2008 23,069 42,440 65,509

Company

At1January2007 23,069 6,028 29,097


Dividends 19 – (4,480) (4,480)

At31December2007 23,069 6,945 30,014


Dividends 19 – (5,040) (5,040)

At 31 December 2008 23,069 9,583 32,652


CoNSoliDateD CaSh flow StateMeNt

36



2008 2007Note $’000 $’000

Cash flows from operating activitiesProfitbeforetax 23,509 21,337

Adjustmentsfor:Depreciationofproperty,plantandequipment 8 588 498Goodwillarisingfromconsolidationwrittenoff – 359Interestincome (8) (49)Interestexpenses 155 181Lossondisposalofproperty,plantandequipment – 16

Operatingcashflowsbeforemovementsinworkingcapital 24,244 22,342

Inventories (5,030) (16,961)Receivables (1,584) (200)Payables 3,566 1,011

Cashfromoperations 21,196 6,192

Interest paid (155) (181)Incometaxpaid (3,927) (3,037)

Net cash from operating activities 17,114 2,974

Cash flows from investing activitiesProceedsfromdisposalofproperty,plantandequipment – 14Purchaseofproperty,plantandequipment 8 (9,259) (275)Interest received 8 49Cashflowonacquisitionofsubsidiary, netofcash(NoteA) – (323)

Net cash used in investing activities (9,251) (535)

Cash flows from financing activities(Repaymentof)/proceedsfromborrowings (2,115) 4,687Dividendpaid 19 (5,040) (4,480)

Net cash (used in)/from financing activities (7,155) 207

Net increase in cash and cash equivalents 708 2,646Cash and cash equivalents at beginning of financial year 10,644 7,998

Cash and cash equivalents at end of financial year 12 11,352 10,644


CoNSoliDateD CaSh flow StateMeNt

37

ANNUAL REPORT 2008


Note A

Acquisition of subsidiary

In2007, theGroupacquiredB&CElectrical Pte Ltd, awholly-owned subsidiary. The fair valueofassetsacquiredandliabilitiesassumedwereasfollows:

$’000

Cash 89Inventories 226Tradeandotherreceivables 540Property,plantandequipment 44Goodwill 359Taxation (25)Tradeandotherpayables (821)

Totalpurchasepricepaid 412Less:Cashofsubsidiary (89)

Cashflowonacquisition,netofcash 323


NoteS to the fiNaNCial StateMeNtSForthefinancialyearended31December2008

38


Thesenotesformanintegralpartofandshouldbereadinconjunctionwiththeaccompanyingfinancialstatements.

1 CORPORATE INFORMATIONTheCompany(Co.Reg.No.200404900H),isincorporatedanddomiciledinSingaporeanditsregisteredofficeisat8PenjuruLane,Singapore609189.

TheprincipalactivityoftheCompanyisthatofinvestmentholding.Theprincipalactivitiesofitssubsidiariesare thoserelating towholesalersandretailersofelectricalgoods,appliancesandotherrelatedproductsandinmarinesupplyandservicingasdisclosedinnote9tothefinancialstatements.

2 SIGNIFICANT ACCOUNTING POLICIES2.1) Basis of preparation

Thefinancialstatements,(expressedinSingaporedollarswhichistheCompany’sfunctionalcurrency), have been prepared in accordance with Singapore Financial ReportingStandards(“FRS”).Thefinancialstatementshavebeenpreparedunderthehistoricalcostconventionexceptasdisclosedintheaccountingpoliciesbelow.

In the current financial year, theGroup hasadoptedall the newand revised FRSandInterpretationsofFRS(“INTFRS”) thatarerelevant to itsoperationsandeffective for thecurrent financial year. The adoption of these new/revised FRSs and INT FRSs has nomaterialeffectonthefinancialstatements.

Atthedateofthebalancesheet,thefollowingFRSsandInterpretationsofFRS(“INTFRS”)wereissued,revisedoramendedbutnoteffective:

FRS1 PresentationofFinancialStatementsFRS23 BorrowingCostsFRS108 OperatingSegmentsINTFRS113 CustomerLoyaltyProgrammesINTFRS116 HedgesofaNetInvestmentinaForeignOperationAmendmentstoFRS101 andFRS27

CostofanInvestmentinaSubsidiary,Jointly ControlledEntityorAssociate

AmendmentstoFRS32 andFRS1

PuttableFinancialInstrumentsandObligationsArising onLiquidation

AmendmentstoFRS102 Share-basedPayment–VestingConditionsand Cancellations

ImprovementstoFRSs2008

Thedirectorsexpectthattheadoptionoftheabovepronouncementswillhavenomaterialimpacttothefinancialstatementsintheperiodofinitialapplication,exceptforFRS1andtheFRS108asindicatedbelow.


39

ANNUAL REPORT 2008

2 SIGNIFICANT ACCOUNTING POLICIES (cont’d)2.1) Basis of preparation (cont’d)

FRS 1, Presentation of financial statements – Revised presentation

The revised FRS 1 requires owner and non-owner changes in equity to be presentedseparately. The statementsof changes inequitywill includeonlydetailsof transactionswith owners,with all owner changes in equitywill presented as a single line item. Inaddition, the revised standard introduces the statement of comprehensive income: itpresentsall itemsof incomeandexpense recognised inprofitor loss, togetherwithallotheritemsofrecognisedincomeandexpense,eitherinonesinglestatement,orintwolinkedstatements.TheGroupiscurrentlyevaluating the format toadopt therevisedFRS1fromannualperiodbeginning1January2009.

FRS 108, Operating Segments

FRS 108 requires entities to disclose segment information based on the informationreviewedby theentity’schiefoperatingdecisionmaker.The impactof thisstandardontheothersegmentdisclosureisstill tobedetermined.Asthis isadisclosurestandard,itwillhavenoimpactonthefinancialpositionorfinancialperformanceoftheGroupwhenimplementedin2009.

2.2) Financial assets

(a) Classification

TheGroup classifies its financial assets according to the purpose forwhich theassetswere acquired.Management determines the classification of its financialassets at initial recognition and re-evaluates this designation at every reportingdate. TheGroup’s only financial assets are loans and receivables and held fortradingfinancialassets.

(i) Loans and receivablesLoans and receivables are non-derivative financial assets with fixed ordeterminablepayments thatarenotquoted inanactivemarket.Theyareincludedincurrentassets,exceptthosematuringlaterthan12monthsafterthebalancesheetdatewhichareclassifiedasnon-currentassets.Loansandreceivablesareclassifiedwithin “tradeandother receivables”and“cashandcashequivalents”onthebalancesheet.

(ii) Financial assets, at fair value through profit or lossThiscategoryhastwosub-categories:financialassetsheldfortrading,andthosedesignatedatfairvaluethroughprofitorlossatinception.Afinancialasset is classified as held for trading if it is acquired principally for thepurposeofselling in theshort term.Financialassetsdesignatedasat fairvalue throughprofit or lossat inceptionare those thataremanagedandtheirperformancesareevaluatedonafairvaluebasis,inaccordancewithadocumentedGroupinvestmentstrategy.Derivativesarealsocategorisedas held for trading unless they are designated as hedges. Assets in thiscategoryarepresentedascurrentassetsiftheyareeitherheldfortradingorareexpectedtoberealisedwithin12monthsafterthebalancesheetdate.Seenote2.4foraccountingpoliciesforderivativefinancialinstrumentsandhedgeaccounting.


40


2 SIGNIFICANT ACCOUNTING POLICIES (cont’d)2.2) Financial assets (cont’d)

(b) Recognition and derecognition

Regularpurchasesandsalesoffinancialassetsarerecognisedontrade-date–thedateonwhich theGroupcommits topurchaseor sell theasset.Financialassetsarederecognisedwhen the rights to receivecash flows from the financialassetshaveexpiredorhavebeentransferredandtheGrouphastransferredsubstantiallyallrisksandrewardsofownership.

On saleof a financial asset, thedifferencebetween the net saleproceedsanditscarryingamountistakentotheincomestatement.Anyamountinthefairvaluereserverelatingtothatassetisalsotakentotheincomestatement.

(c) Initial measurement

Loansandreceivablesareinitiallyrecognisedatfairvalueplustransactioncosts.

(d) Subsequent measurement

Loans and receivables are carried at amortised cost using the effective interestmethod.

Interest income on financial assets are recognised separately in the incomestatement.

(e) Impairment

TheGroupassessesateachbalancesheetdatewhetherthereisobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.

(i) Loans and receivablesAnallowanceforimpairmentofloansandreceivables,includingtradeandotherreceivables, is recognisedwhenthereisobjectiveevidencethat theGroupwillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofthereceivables.

Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyorfinancialreorganisation,anddefaultordelinquencyinpayments are considered indicators that the receivable is impaired. Theamount of the allowance is the difference between the asset’s carryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheoriginaleffectiveinterestrate.


41

ANNUAL REPORT 2008

2 SIGNIFICANT ACCOUNTING POLICIES (cont’d)2.3) Financial liabilities

Financial liabilities include trade and other payables and bank borrowings. Financialliabilitiesarerecognisedonthebalancesheetwhen,andonlywhen,theGroupbecomesaparty to the contractual provisions of the financial instrument. Financial liabilities areinitiallyrecognisedatfairvalueplusdirectlyattributabletransactioncostsandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.

Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisextinguished.Gains and losses are recognised in the income and expenditure statement when theliabilitiesarederecognisedandthroughtheamortisationprocess.

2.4) Derivative financial instruments and hedge accounting

The Group’s activities expose it primarily to the financial risks of changes in foreignexchangeratesandinterestrates.

The Group uses derivative financial instruments (primarily foreign currency forwardcontracts)tohedgeitsrisksassociatedwithforeigncurrencyfluctuationsrelatingtocertainfirmcommitmentsandforecastedtransactions.Thesignificantinterestrateriskarisesfrombankborrowing.

TheuseoffinancialderivativesisgovernedbytheGroup’spoliciesapprovedbytheboardofdirectors,whichprovidewrittenprinciplesontheuseoffinancialderivativesconsistentwiththeGroup’sriskmanagementstrategy.TheGroupdoesnotusederivativefinancialinstrumentsforspeculativepurposes.

Derivative financial instrumentsare initiallymeasuredat fairvalueon thecontractdate,andarere-measuredtofairvalueatsubsequentreportingdates.

Changesinthefairvalueofderivativefinancialinstrumentsthatdonotqualifyforhedgeaccountingarerecognisedintheprofitorlossastheyarise.

2.5) Revenue recognition

Revenue ismeasured at the fair value of the consideration received or receivable andrepresentsamounts receivable forgoodsandservicesprovided in thenormalcourseofbusiness,netofdiscountsandsalesrelatedtaxes.

Salesof inventoriesarerecognisedwheninventoriesaredeliveredand titlehaspassedtothecustomer.


42


2 SIGNIFICANT ACCOUNTING POLICIES (cont’d)2.6) Principles of consolidation

Theconsolidatedfinancialstatementscomprise thefinancialstatementsof theCompanyand its subsidiaries as at the balance sheet date. The financial statements of thesubsidiariesarepreparedforthesamereportingdateastheparentcompany.Consistentaccountingpoliciesareappliedforliketransactionsandeventsinsimilarcircumstances.

Intragroup balances and transactions, including income, expenses and dividends,are eliminated in full. Profits and losses resulting from intragroup transactions that arerecognisedinassets,suchasinventoryandproperty,plantandequipment,areeliminatedinfull.

Subsidiariesarefullyconsolidatedfromthedateofacquisition,beingthedateonwhichtheGroupobtainscontrol,andcontinuetobeconsolidateduntilthedatethatsuchcontrolceases.

Acquisitionsofsubsidiariesareaccountedforusingthepurchasemethod.Thecostofanacquisitionismeasuredasthefairvalueoftheassetsgiven,equityinstrumentsissuedandliabilitiesincurredorassumedatthedateofexchange,pluscostsdirectlyattributabletotheacquisition.Identifiableassetsacquiredandliabilitiesandcontingentliabilitiesassumedinabusinesscombinationaremeasuredinitiallyattheirfairvaluesattheacquisitiondate,irrespectiveoftheextentofanyminorityinterest.

AnyexcessofthecostofthebusinesscombinationovertheGroup’sinterestinthenetfairvalueof the identifiableassets, liabilities and contingent liabilities represents goodwill.The goodwill is accounted for in accordance with the accounting policy for goodwillstatedinnote2.7.

AnyexcessoftheGroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesoverthecostofbusinesscombinationisrecognisedintheincomestatementonthedateofacquisition.

2.7) Goodwill

Goodwillarisingon theacquisitionofa subsidiary represents theexcessof thecostofacquisitionovertheGroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesofthesubsidiaryrecognisedatthedateofacquisition.Goodwillis initiallyrecognisedasanassetatcostandissubsequentlymeasuredatcost lessanyaccumulatedimpairmentlosses.

TheGrouptestsgoodwillannuallyforimpairment,ormorefrequentlyifthereareindicationsthatgoodwillmightbeimpaired.


43

ANNUAL REPORT 2008

2 SIGNIFICANT ACCOUNTING POLICIES (cont’d)2.7) Goodwill (cont’d)

For the purpose of impairment testing, goodwill is allocated to each of the Group’scash-generating units expected to benefit from the synergies of the combination.Cash-generatingunitstowhichgoodwillhasbeenallocatedaretestedforimpairmentannually,or more frequently when there is an indication that the unit may be impaired. If therecoverable amount of the cash-generating unit is less than the carrying amount of theunit,theimpairmentlossisallocatedfirsttoreducethecarryingamountofanygoodwillallocated to theunitand then to theotherassetsof theunitpro-rataon thebasisof thecarryingamountofeachassetintheunit.Animpairmentlossrecognisedforgoodwillisnotreversedinasubsequentperiod.

On disposal of a subsidiary, the attributable amount of goodwill is included in thedeterminationoftheprofitorlossondisposal.

2.8) Subsidiaries

A subsidiary is an entity overwhich theGroup has the power to govern the financialandoperatingpolicies soas toobtainbenefits from itsactivities. TheGroupgenerallyhassuchpowerwhen itdirectlyor indirectly,holdsmore than50%of the issuedsharecapital,orcontrolsmorethanhalfofthevotingpower,orcontrolsthecompositionoftheboardofdirectors.

IntheCompany’sseparatefinancialstatements,investmentsinsubsidiariesareaccountedforatcostlessanyimpairmentlosses.

2.9) Property, plant and equipment

All itemsofproperty,plantandequipmentare initially recordedatcost.Subsequent torecognition,property,plantandequipmentarestatedatcostlessaccumulateddepreciationandanyimpairmentinvalue.

Depreciationiscalculatedonastraight-linebasis towriteoff thecostofproperty,plantandequipmentovertheirexpectedusefullives.

Theestimatedusefullivesoftheproperty,plantandequipmentareasfollows:–

Number of years

Extension,additionandalterationworks 10-50Motor vehicles 5Warehouseequipmentandfittings 5Computerandofficeequipment 3Furniture,fittingsandrenovation 5

The leasehold properties are depreciated based on the shorter of 50 years and leaseperiod.

Fullydepreciatedassetsare retained in the financialstatementsuntil theyareno longerinuse.


44


2 SIGNIFICANT ACCOUNTING POLICIES (cont’d)2.10) Inventories

Inventories(consistingofgoodsforsale)arestatedatthelowerofcostandnetrealisablevalue.Costisdeterminedonafirst-in,first-outbasis.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lessthecoststobeincurredinmarketing,sellinganddistribution.

2.11) Operating leases

Leaseswhere a significant portion of the risks and rewards of ownership are retainedbythe lessorareclassifiedasoperating leases.Paymentsmadeunderoperating leases(netofany incentives received from the lessor)are taken to the income statementonastraight-linebasisovertheperiodofthelease.

Whenanoperatingleaseisterminatedbeforetheleaseperiodhasexpired,anypaymentrequiredtobemadetothelessorbywayofpenaltyisrecognisedasanexpenseintheperiodinwhichterminationtakesplace.

2.12) Provisions

Provisions are recognised when the Group has a present obligation as a result of apast event and it is probable that theGroupwill be required to settle that obligation.Provisionsaremeasuredatthedirectors’bestestimateoftheexpenditurerequiredtosettletheobligationat thebalancesheetdateandarediscountedtopresentvaluewheretheeffectismaterial.

2.13) Income taxes

Incometaxontheprofitorlossfortheyearcomprisescurrentanddeferredtax.Incometaxisrecognisedintheincomestatementexcepttotheextentthatitrelatestoitemsrecogniseddirectlytoequity,inwhichcaseitisrecognisedinequity.

Current tax is the expected tax payable on the taxable income for the year, using taxratesenactedorsubstantiallyenactedatthebalancesheetdate,andanyadjustmenttotaxpayableinrespectofpreviousyears.

Deferred tax is provided using the liabilitymethod, on all temporary differences at thebalance sheet date arising between the tax bases of assets and liabilities and theircarryingamountsin thefinancialstatements.Currentlyenactedtaxratesareusedinthedeterminationofdeferredincometax.

Deferredtaxassetsarerecognisedtotheextentthatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilised.

Deferred income tax is provided on temporary differences arising on investments insubsidiaries, except where the timing of the reversal of the temporary difference canbe controlled and it is probable that the temporary difference will not reverse in theforeseeablefuture.

Deferredtaxesarechargedorcreditedtoequityifthetaxrelatestoitemsthatarecreditedorcharged,inthesameoradifferentperiod,directlytoequity.


45

ANNUAL REPORT 2008

2 SIGNIFICANT ACCOUNTING POLICIES (cont’d)2.14) Foreign currency translation

Foreigncurrencytransactionsareaccountedforattheexchangeratesrulingonthedateofthetransactions.Foreigncurrencymonetaryassetsandliabilitiesaretranslatedattheratesofexchangeprevailingatthebalancesheetdate.Profitsandlossesarisingonexchangearedealtwithintheincomestatement.

2.15) Employee benefits

Defined contribution plans

TheGroupmakescontributiontotheCentralProvidentFund(“CPF”),adefinedcontributionpension scheme regulated andmanaged by the SingaporeGovernment. Contributionsto CPF are charged to income statement in the period in which the related service isperformed.TheGroup’sobligationsundertheCPFschemeareequivalenttothepaymentstoCPF.

Employee leave entitlement

Employeeentitlements toannual leaveare recognisedwhen theyaccrue toemployees.Anaccrualismadefortheestimatedliabilityforleaveasaresultofservicesrenderedbyemployeesuptothebalancesheetdate.

2.16) Impairment of non-financial assets

Non-financialassetsarereviewedforimpairmentateachbalancesheetdateorwheneverevents or changes in circumstances indicate that the carrying amount of an asset maynotberecoverable.Whenever thecarryingamountofanassetexceeds its recoverableamount,animpairmentlossisrecognisedintheincomestatement.

Reversal of impairment losses recognised in prior years is recorded when there is anindication that the impairment losses recognised for the asset no longer exist or havedecreased.Thereversalisrecordedinincome.However,theincreasedcarryingamountof anasset due toa reversal of an impairment loss is recognised to the extent it doesnotexceedthecarryingamountthatwouldhavebeendetermined(netofamortisationordepreciation)hadnoimpairmentlossbeenrecognisedforthatassetinprioryears.

2.17) Dividends

Interim dividends are recorded during the financial year in which they are declaredpayable.FinaldividendsarerecordedinthefinancialstatementsintheperiodinwhichtheyareapprovedbytheCompany’sshareholders.

2.18) Cash and cash equivalents

Cashandcashequivalentscomprisecashonhandanddepositsheldatcallwithbanksandthesearesubjecttoaninsignificantriskofchangesinvalue.


46


2 SIGNIFICANT ACCOUNTING POLICIES (cont’d)2.19) Segment reporting

AsegmentisadistinguishablecomponentoftheGroupthatisengagedeitherinprovidingproducts or services (business segment), or in providing products or services within aparticulareconomicenvironment (geographical segments),which is subject to risksandrewardsthataredifferentfromthoseofothersegments.

Segment information is presented in respect of theGroup’s business andgeographicalsegments.Theprimaryformat,businesssegments,isbasedontheGroup’smanagementandinternalreportingstructure.

Intersegmentpricingisdeterminedonanarm’slengthbasis.

2.20) Significant accounting estimates and judgements

The preparation of the Group’s financial statements requires management to makejudgements, estimates and assumptions that affect the reported amounts of revenue,expenses,assetsandliabilities,andthedisclosureofcontingentliabilitiesatthereportingdate.

(a) Critical judgment made in applying accounting policies

Fair value of financial assets and liabilitiesThe notional amounts of cash and cash equivalents, trade and other currentreceivablesandpayablesandprovisionsapproximatetheirrespectivefairvaluesduetotherelativelyshort-termmaturityofthesefinancialinstruments.

The fairvaluesofotherclassesof financialassetsand liabilitiesaredisclosedintherespectivenotestofinancialstatements.

(b) Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimationuncertainty at the balance sheet date, that have a significant risk of causing amaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow.

(i) IncometaxesSignificantjudgementisinvolvedindeterminingthecapitalallowanceanddeductibilityofcertainexpensesduring theestimationof theprovision forincome tax. There are many transactions and calculations for which theultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.TheGroup recognises liabilities foranticipated taxaudit issuesbasedonestimateswhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeof thesematters isdifferent from theamounts thatwere initially recorded,suchdifferencewill impact the income taxanddeferred taxprovisions intheperiodinwhichsuchdeterminationismade.

The carrying amount of theCompany’s andGroup’s tax liabilities at 31December2008was$5,000(2007:$5,000)and$4,317,000(2007:$3,973,000)respectively.


47

ANNUAL REPORT 2008

2 SIGNIFICANT ACCOUNTING POLICIES (cont’d)2.20) Significant accounting estimates and judgements (cont’d)

(b) Key sources of estimation uncertainty (cont’d)

(ii) ImpairmentofloansandreceivablesThe Group assesses at each balance sheet date whether there is anyobjectiveevidencethatafinancialassetisimpaired.Todeterminewhetherthereisobjectiveevidenceofimpairment,theGroupconsidersfactorssuchas the probability of insolvency or significant financial difficulties of thedebtoranddefaultorsignificantdelayinpayments.

Wherethereisobjectiveevidenceofimpairment,theamountoffuturecashflows are estimated based on historical loss experience for assets withsimilarcreditriskcharacteristics.ThecarryingamountoftheGroup’sloansandreceivablesatthebalancesheetdateisdisclosedinnote10to12tothefinancialstatements.

(iii) Allowanceforslow-movinginventoriesManagementreviewstheinventoryageinglistingonaperiodicbasis.Thisreview involves comparison of the carrying value of the aged inventoryitemswith the respectivenet realisablevalue.Thepurpose is toascertainwhetheranallowanceisrequiredtobemadeinthefinancialstatementsforslow-moving items.Management is satisfied that adequateallowance forinventorieshasbeenmadeinthefinancialstatements.Thecarryingamountofinventoriesincludedinthebalancesheetasat31December2008was$40,270,000 (2007: $35,240,000) after write-down of $739,000(2007:$568,000).

3 FINANCE COSTSGroup

2008 2007$’000 $’000

Interestonbankborrowings–trustreceipts 110 180–overdraft – 1–loans 45 –

155 181


48


4 PROFIT BEFORE TAxGroup

2008 2007$’000 $’000

Profitbeforetaxisarrivedataftercharging:

AuditfeespaidtoauditorsoftheCompany 74 62Non-auditfeespaidtoauditorsoftheCompany 25 12Allowancefordoubtfuldebts – 164Badtradedebtwrittenoff 1 1Stockswrittendown 171 568Depreciationofproperty,plantandequipment 588 498Landandwarehouserental 477 215Otherrentalexpenses 13 11Costofinventoriesincludedincostofsales 57,219 48,392Goodwillarisingfromconsolidationwrittenoff – 359Staffcosts(note5) 9,266 8,160

and crediting:Foreignexchangegain(net) 418 286Interestincome 8 49Allowancefordoubtfuldebtwrittenback 52 –

5 STAFF COSTSGroup

2008 2007$’000 $’000

Paid to directors of the Company–Fee 300 300–Remuneration 3,819 3,666–CPF 24 26

Paid to other directors of subsidiaries–Fee 70 80–Remuneration 1,056 948–CPF 37 34

Key management staff (non-directors)–Salariesandrelatedcosts 278 154–CPF 22 14

Other staff–Salariesandrelatedcosts 3,014 2,449–CPF 426 384

Staff training and welfare 220 105

9,266 8,160


49

ANNUAL REPORT 2008

5 STAFF COSTS (cont’d)Remuneration bands of directors of the Company

Thefollowinginformationrelatestoremuneration(includingfees)ofdirectorsoftheCompany:–

NumberofdirectorsoftheCompanyinremunerationbands

Group2008 2007

$’000 $’000

Below$250,000 3 4$250,000tobelow$500,000 – –$500,000tobelow$750,000 1 1$750,000andabove 2 2

Total 6 7

6 TAx ExPENSETaxexpenseattributabletoprofitsismadeupof:

Group2008 2007

$’000 $’000

Currentincometaxexpense 4,263 3,867Under/(over)-provisioninprioryear 8 (46)

4,271 3,821

The income taxexpenseon the results of the financial year varies from theamountof incometaxdeterminedbyapplying theSingaporestatutoryrateof incometax toprofitbefore taxduetothefollowingfactors:

Profitbeforetax 23,509 21,337

Taxcalculatedatthestatutorytaxrateof18% 4,232 3,841Statutorysteppedincomeexemption (84) (105)Under/(over)-provisioninprioryear 8 (46)Expensesnotdeductiblefortaxpurposes 90 143Others 25 (12)

4,271 3,821


50


7 EARNINGS PER SHAREThecalculationof thebasicanddilutedearningsper shareattributable to theordinaryequityholdersoftheCompanyarebasedonthefollowings:

Group2008 2007

EarningsNetprofitfortheyearattributabletoequityholdersof theCompany($’000) 19,238 17,516

Number of shares (‘000)Numberofordinarysharesinissuefortheyear 420,000 420,000

Basicanddilutedearningspershareiscalculatedbydividingtheprofitaftertaxattributabletoequity holders of theCompanyby the numberof ordinary shares in issueduring the financialyear.

Theissuednumberofordinarysharesasat31December2007was280,000,000.Thenumberofordinary shares hasbeenadjusted to420,000,000ordinary shares in the computationofearningspersharefor140,000,000bonussharesallottedandissuedtoexistingshareholderson21February2008.


51

ANNUAL REPORT 2008

8 PROPERTy, PLANT AND EqUIPMENT – GROUP

Leaseholdproperty

Extension,addition &alteration

worksMotor

vehicles

Warehouseequipment

& fittings

Computer& office

equipment

Furniture,fittings &

renovation Total$’000 $’000 $’000 $’000 $’000 $’000 $’000

2008CostAt1.1.2008 3,560 3,283 326 309 411 407 8,296Additions 2,570 6,253 – 58 161 217 9,259Disposals – – – – (38) – (38)

At 31.12.2008 6,130 9,536 326 367 534 624 17,517

Accumulated depreciationAt1.1.2008 190 411 235 165 246 123 1,370Depreciation charge 138 185 31 56 91 87 588Disposals – – – – (38) – (38)

At 31.12.2008 328 596 266 221 299 210 1,920

Net book valueAt 31.12.2008 5,802 8,940 60 146 235 414 15,597

Leaseholdproperty

Extension,addition &alteration

worksMotor

vehicles

Warehouseequipment

& fittings

Computer& office

equipment

Furniture,fittings &

renovation Total$’000 $’000 $’000 $’000 $’000 $’000 $’000

2007CostAt1.1.2007 3,560 3,283 283 250 309 300 7,985Duetoacquisition ofsubsidiary – – 72 – 24 27 123Additions – – 10 59 97 109 275Disposals – – (39) – (19) (29) (87)

At31.12.2007 3,560 3,283 326 309 411 407 8,296

Accumulated depreciationAt1.1.2007 119 250 154 123 155 49 850Duetoacquisition ofsubsidiary – – 49 – 15 15 79Depreciation charge 71 161 61 42 88 75 498Disposals – – (29) – (12) (16) (57)

At31.12.2007 190 411 235 165 246 123 1,370

NetbookvalueAt31.12.2007 3,370 2,872 91 144 165 284 6,926

Thenetbookvalueofleaseholdpropertyandextension,additionandalterationworksamountingto$8,720,000(2007:$6,242,000)ismortgagedtosecurebankingfacilitiesgrantedtotheGroup(note13).


52


9 INVESTMENT IN SUBSIDIARIESCompany

2008 2007$’000 $’000

Unquotedequityshares,atcost 10,717 10,717

Thefollowinginformationrelatestothesubsidiaries:

Name of subsidiary(Country ofincorporation) Principal activities

Company’s equityinterest held

2008 2007% %

BengHuiMarineElectricalPteLtd*(Singapore)

Wholesalersandretailersofelectricalgoods,appliancesandotherrelatedproductsinmarinesupplyandservicing.

100 100

Sanshin Marine(S.E.A.)PteLtd*(Singapore)

Wholesaletradeinmarineequipmentandaccessories.

100 100

YorkshireMarine&Offshore(S)PteLtd*(Singapore)

Wholesaletradeinmarineequipmentand accessories

100 100

B&CElectricalPteLtd*^(Singapore)

Wholesaletradeinelectricalcables,accessoriesandhardware

100 100

* AuditedbyBakerTillyTFWLCL

^ Thecompanybecamedormantduringtheyear.

10 TRADE RECEIVABLES – GROUPTrade receivables are stated after making allowance for doubtful receivables of $112,005(2007:$164,378).


53

ANNUAL REPORT 2008

11 OTHER RECEIVABLESGroup Company

2008 2007 2008 2007$’000 $’000 $’000 $’000

Depositandstampdutyfor purchaseofleaseholdproperty – 320 – –Sundrydeposits 112 39 1 –Prepayments 83 29 37 –Dividendreceivablefrom asubsidiary – – – 5,800Amountsduefromsubsidiaries – – 24,843 16,225Sundryreceivables 145 26 121 21

340 414 25,002 22,046

The amounts due from subsidiaries are non-trade in nature, unsecured, interest-free and arerepayableondemand.

12 CASH AND CASH EqUIVALENTSGroup Company

2008 2007 2008 2007$’000 $’000 $’000 $’000

Cashatbankandonhand 9,852 10,629 199 179Fixeddeposits 1,500 15 – –

11,352 10,644 199 179

ThefixeddepositsoftheGroupareplacedwithabankandmaturewithin3monthsfromyearend. The interest rates of thesedeposits at31December2008 range from0.72% to0.84%(2007:0.75%)perannum.

13 BANk BORROWINGSGroup

2008 2007$’000 $’000

Non-currentTermloan(secured) 1,333 –

CurrentTermloan(secured) 400 –Workingcapitalloan(unsecured) 1,500 –Trustreceipts(secured) – 5,348

1,900 5,348

Totalbankborrowings 3,233 5,348

The term loan and trust receipts of theGroup are secured by legalmortgage of theGroup’sleaseholdpropertyandextension,additionandalterationworks(note8)andcorporateguaranteefrom theCompany.The term loan is repayableover59monthly instalmentsof$33,340eachandafinalinstalmentof$32,940.Thefirstinstalmentcommencedon1May2008.


54


13 BANk BORROWINGS (cont’d)TheworkingcapitalloaniscoveredbycorporateguaranteefromtheCompany.

Interestratesatthebalancesheetdatewereasfollows:–

Term loan – Variable rate at 1% (2007:Nil) per annum over the bank’s cost of funds rate.Working capital loan – Variable rate at 1.5% (2007: Nil) per annum over SIBOR rate. Trust receipts –Nil (2007: Variable rate at 1.25% per annum over the bank’s cost of fundsrate).

Thecarryingvalueofbankborrowingsapproximatetheirfairvalues.

14 OTHER PAyABLESGroup Company

2008 2007 2008 2007$’000 $’000 $’000 $’000

Accruedoperatingexpenses 3,714 2,491 274 251Provisionfordirectors’fees –directorsoftheCompany 300 300 300 300 –otherdirectorsof subsidiaries 70 80 – –Amountsduetodirectorsof theCompany 2,612 2,372 2,612 2,372Amountsduetoasubsidiary – – 75 –

6,696 5,243 3,261 2,923

Theamountsdue todirectorsandasubsidiaryarenon-trade innature,unsecured, interest-freeandarerepayableondemand.

15 SHARE CAPITAL

Group and Company2008 2007

Number ofissued shares

Total sharecapital

Numberofissued shares

Totalsharecapital

‘000 $’000 ‘000 $’000

Balanceatbeginningof financialyear 280,000 23,069 280,000 23,069Bonusissue 140,000 – – –

Balanceatendoffinancialyear 420,000 23,069 280,000 23,069

On21February2008,140,000,000newordinary shareson thebasisofonebonus shareforeverytwoexistingordinarysharesintheissuedsharecapitaloftheCompanywereallottedand issued to shareholders of the Company. The bonus shares rank pari passu with existingordinaryshares.

The holder of ordinary shares is entitled to receive dividends as and when declared by theCompany.Allordinarysharescarryonevotepersharewithoutrestriction.


55

ANNUAL REPORT 2008

16 CONTINGENT LIABILITyAs at 31 December 2008, the Company has given corporate guarantees of $26,900,000(2007:$19,900,000)forfinancingfacilitiesgrantedbyfinanceinstitutionstoasubsidiary.

17 COMMITMENTSa) Lease commitments

Commitments in relation to non-cancellable operating leases contracted for but notrecognisedasliabilities,arepayableasfollows:

Group2008 2007

$’000 $’000

Within1financialyear 394 231Between2to5financialyears 1,578 572Over5financialyears 9,709 5,211

11,681 6,014

The leaseshavevarying termsandescalationclauses.Renewalof leasesaresubject toapprovalbylessor.

Lease terms do not contain restrictions on theGroup’s activities concerning dividends,additionaldebtorfurtherleasing.

b) Capital commitments

The Group had approved and contracted to $828,000 capital expenditure forextension,additionandalterationworks.Thisamountisnotprovidedforinthefinancialstatements.

c) Other commitments

Asat31December2008,theGrouphadenteredintoexclusivedistributionagreementswithsuppliers,wherebytheGroupisexpectedtomakeminimumpurchasesof$150,000underoneoftheseagreementsandgenerallyrequiredtomaintainadequatestockoftheproductstomeettheexpecteddemandinaparticularindustry.ThesuppliershavetherighttoterminatetheirexclusivedistributionagreementsiftheGroupfailstomeettheminimumpurchaserequirementspursuanttothetermsandconditionsoftheagreements.

TheGroupisincompliancewithallminimumpurchaserequirementspursuanttothetermsandconditionsoftheagreementsforthefinancialyearended31December2007and2008.

18 HOLDING COMPANy

TheCompany’s immediate and ultimate holding company is BengHui Holding (S) Pte Ltd, acompanyincorporatedinSingapore.


56


19 DIVIDENDSGroup

2008 2007$’000 $’000

Firstandfinaltaxexempt(one-tier)dividendof:––1.2centspershareforthefinancialyear ended31December2007 5,040 ––1.6centpershareforthefinancialyearended 31December2006 – 4,480

The directors have proposed a first and final tax exempt (one-tier) dividend for the financialyearended31December2008of1.2centspershareamountingtoa totalof$5,040,000.These financial statements do not reflect this dividend payable, which will be accounted forin the shareholders’ equity as an appropriation of accumulated profits in the year ending31December2009.

20 FINANCIAL RISk MANAGEMENTCategories of financial instruments

Financialinstrumentsasatbalancesheetdateareasfollows:–

Group2008 2007

$’000 $’000

Financial assetsTradeandotherreceivables 24,044 22,514Cashandcashequivalents 11,352 10,644

Loansandreceivables 35,396 33,158

Financial liabilitiesTradeandotherpayables 18,386 14,714Bankborrowings 3,233 5,348

Totalfinancialliabilitiesatamortisedcost 21,619 20,062

Financial assets at fair value through profit and lossDerivativefinancial(liabilities)/assetsincludedintradepayables (99) 7


57

ANNUAL REPORT 2008

20 FINANCIAL RISk MANAGEMENT (cont’d)Financial risk factors

TheGroup’sactivitiesexposeittomarketrisk(includingforeignexchangerisk,interestraterisk,liquidityandcommoditypricerisk)andcreditrisk.TheGroup’soverallfinancialriskmanagementstrategy seeks tominimiseadverseeffects from theunpredictabilityof financialmarketson theGroup’sfinancialperformance.

The Board of Directors provides written principles for overall financial risk management andwrittenpoliciescoveringthespecificareasabove.SuchwrittenpoliciesarereviewedannuallybytheBoardofDirectorsandperiodicreviewsareundertakentoensurethattheGroup’spolicyguidelinearecompliedwith.RiskmanagementiscarriedoutbytheRiskManagementCommitteeunderthepoliciesapprovedbytheBoardofDirectors.

TherehasbeennochangetotheGroup’sexposuretothesefinancialrisksorthemannerinwhichitmanagesandmeasuresfinancialrisk.Marketriskandcreditriskexposuresaremeasuredusingsensitivityanalysisindicatedbelow.

a) Market risk

Foreign exchange risk

ForeigncurrencyriskarisesoncertainpurchasesthataredenominatedincurrenciesotherthanSingaporedollars.ThecurrenciesthatgiverisetothisriskareprimarilyUnitedStatesdollarandEuro.

The Group’s financial risk management policy is to hedge any exposure exceedingUS$100,000orEUR70,000basedontheweeklyforeignexchangerequirementreportandcashflowof theGroup. It isnot theGroup’spolicy to takespeculativepositions inforeigncurrencies.

TheGroup’sforeigncurrencyexposureisasfollows:

USD Euro Others TotalS$’000 S$’000 S$’000 S$’000

At31December2008

Financial assetsCashandcashequivalents 254 209 – 463Tradereceivables 65 77 11 153

319 286 11 616

Financial liabilitiesTradepayables 4,674 2,866 719 8,259

Netfinancialliabilities (4,355) (2,580) (708) (7,643)Foreigncurrencyforwards 5,019 4,810 465 10,294

Currencyexposure 664 2,230 (243) 2,651


58


20 FINANCIAL RISk MANAGEMENT (cont’d)a) Market risk (cont’d)

Foreign exchange risk (cont’d)

USD Euro Others TotalS$’000 S$’000 S$’000 S$’000

At31December2007

Financial assetsCashandcashequivalents 205 326 20 551Tradereceivables 491 166 – 657

696 492 20 1,208

Financial liabilitiesTradepayables 4,928 2,117 705 7,750

Netfinancialliabilities (4,232) (1,625) (685) (6,542)Foreigncurrencyforwards 2,642 1,496 – 4,138

Currencyexposure (1,590) (129) (685) (2,404)

TheCompanydoesnothaveanyforeigncurrencyexposure.

IfboththeUnitedStatesdollarandEurochangeagainsttheSGDby5%(2007:5%)withallothervariablesincludingtaxratebeingheldconstant,theeffectsarisingfromthenetfinancialliability/assetpositionwillbeasfollows:

2008 2007 Increase/(Decrease)

Profit after tax Profitaftertax$’000 $’000

GroupUSDagainstSGD–strengthened 27 (65)–weakened (27) 65

EuroagainstSGD–strengthened 91 (5)–weakened (91) 5


59

ANNUAL REPORT 2008

20 FINANCIAL RISk MANAGEMENT (cont’d)a) Market risk (cont’d)

Interest rate risk

TheGroup’sexposuretotheriskofchangesininterestratesarisemainlyfromtheGroup’sfixeddepositsplacedwithfinancialinstitutionsandbankborrowings.Forinterestincomefromthefixeddeposits,theGroupmanagedtheinterestraterisksbyplacingfixeddepositswithreputablefinancialinstitutionsonvaryingmaturitiesandinterestrateterms.

Interestexpensefrombankborrowingsarisesfromtermloan,workingcapitalloanandtrustreceipts (note13).TheGroup’sborrowingsatvariableratesonwhicheffectivehedgeshavenotbeenenteredinto,aredenominatedinSGD.IftheSGDinterestratesincrease/decreaseby0.5%(2007:0.5%)withallothervariables, including tax ratebeingheldconstant,theeffectsarisingfromthenetprofitaftertaxareasfollows:

2008 2007 Increase/(Decrease)

Profit after tax Profitaftertax$’000 $’000

GroupInterest rate–Increase (14) (22)–Decrease 14 22

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting financialobligationsduetoshortageoffunds.TheGroup’sexposuretoliquidityriskarisesprimarilyfrommismatchesofthematuritiesoffinancialassetsandliabilities.TheGroupmanagetheliquidityriskbymaintainingsufficientcashtoenablethemtomeettheirnormaloperatingcommitmentsandhavinganadequateamountofcommittedcreditfacilities(note13).

Commodity price risk

TheGrouphascommoditypriceriskascopperisoneofthemainrawmaterials.Copperisatradedcommodityanditspriceissubjecttothefluctuationsoftheworldcommoditymarkets.Any significant increases in theprice for copperwill haveamaterial adverseimpactonthefinancialpositionandresultsofoperation.TheGroup’sprofitabilitywillbeadverselyaffectediftheGroupisunabletopassonanyincreaseinrawmaterialpricestoitscustomersonatimelybasisorfindcheaperalternativesourcesofsupply.

TheGroupmonitors thematerialpricefluctuationcloselyandasfaraspossible, lockedinmaterialpricesonconfirmedorders.


60


20 FINANCIAL RISk MANAGEMENT (cont’d)b) Credit risk

Credit risk refers to the risk that counterpartywill default on its contractual obligationsresultinginfinanciallosstotheGroup.TheGrouphascreditpoliciesinplacetoensurethatsaleofproductsaremadetocustomerswithappropriatecredithistoriesandtheexposuretocredit risk ismonitoredonanongoingbasisby thedirectors.Creditevaluationsareperformedonallcustomersrequiringcreditextensionorcreditlimit.Themaximumexposuretocreditriskisrepresentedbythecarryingamountofloansandreceivablesinthebalancesheetandthefollowing:

Company2008 2007

$’000 $’000

Corporateguaranteesprovidedtobanks forasubsidiary’sborrowings(note16) 26,900 19,900

At thebalancesheetdate, thereweresignificantconcentrationsofcredit risksprimarilyontradereceivables.

TheGroup’s 4 (2007: 4) largest trade receivables amounted to $7,587,811 (2007:$7,992,239) and this represented 32% (2007: 36%) of total trade receivables andof which one major corporate customer represented 13% (2007: 18%) of total tradereceivables.

TheGroup’stradereceivablescomprisethefollowing:

Group2008 2007

$’000 $’000

Notpastdue 15,599 13,072Pastduebutnotimpaired 8,188 9,057Pastdueandimpaired 112 164

23,899 22,293

Financial assets that are past due but not impaired

Group2008 2007

$’000 $’000

Pastdue0to3months 7,265 7,779Pastdue3to6months 771 993Pastdueover6months 152 285

Total 8,188 9,057


61

ANNUAL REPORT 2008

20 FINANCIAL RISk MANAGEMENT (cont’d)b) Credit risk (cont’d)

Financial assets that are past due and impaired

The Group’s trade receivables that are past due and impaired amount to $112,005(2007:$164,378)forwhichtheGrouphadmadefullallowancefordoubtfulreceivables(note10).

In2007,acorporatecustomerwassuedbyitsbankerforasubstantialamount.In2008,thebankerservedastatutorydemandonthecorporatecustomerforpaymentwithin21daysfromthedateofdemand.Thecorporatecustomerhadin turnapplied to theHighCourtforaninjunctiontorestrainthebankfromfilingawindinguppetition.

On 10 June 2008, the customer’s parent company (which is a large and reputablecompanylistedinSingapore)announcedthat theHighCourthadgrantedanInjunctionrestrainingthebankerfromfilingawindingupapplicationagainstthecorporatecustomer.On4July2008,thebankerfiledaNoticeofAppealappealingagainstthedecisionoftheHighCourtbuton24December2008, thecustomer’sparentcompanyannouncedthattheyhavereachedanagreementwiththebankforafullandfinalsettlementoftheirclaims.

Basedontheabove,thedirectorsareoftheviewthattheamountduefromthecorporatecustomerof$1,092,292(netofallowancefordoubtfulreceivableof$103,906)willbecollectibleinduecourseandthatnofurtherallowancefordoubtfulreceivableisnecessaryasat31December2008.

c) Capital risk

The Group’s objective when managing capital are to safeguard the Group’s abilityto continue as a going concern and to maintain an optimal capital structure so as tomaximizeshareholdervalue.Inordertomaintainorachieveanoptimalcapitalstructure,theGroupmayadjust the amount of dividendpayment, return capital to shareholders,issuenewshares,buybackissuedshares,obtainnewborrowingsorsellassetstoreduceborrowings.

ThecapitalstructureoftheGroupmainlyconsistsofequityandtheGroup’soverallstrategyremainsunchangedfrom2007.

The Group and the Company are in compliance with all externally imposed capitalrequirementsforfinancialyearsended31December2007and2008.


62


21 SEGMENT INFORMATION(a) Business segments

TheGroup’sprimary format for reportingsegment information isbusinesssegment,witheach segment representing a strategic business segment that offers different products/services.TheGrouphas twomainbusiness segments,MarineElectricalEquipmentandMarineConsumables.

MarineElectricalEquipmentisfurthersub-dividedinto:

a. Marinecablesanditsaccessories;andb. Marinelightingequipmentandaccessories

MarineConsumablesisfurthersub-dividedinto:

c. Marinelamps;andd. Generalmarineconsumableproducts

All the segments as mentioned above relate to supply and distribution of hardwareequipment,toolsandotherproductsusedinthemarineindustries.

Segmentrevenuecomprisenetsalestoexternalcustomers.

Segment results,assetsand liabilities include itemsdirectlyattributable toasegmentaswell as those that can be allocated on a reasonable basis. Unallocated items mainlycompriseotherreceivables,taxpayable,financecostandinterestincomethatcannotbedirectlyallocatedtoaparticularbusinesssegment.

Segmentcapitalexpenditureisthetotalcostsincurredduringthefinancialyeartoacquiresegmentassetsthatareexpectedtobeusedformorethanoneyear.

Thefollowingtablespresentrevenue,segmentresults,assetsandliabilities,depreciationandcapitalexpenditureinformationfortheGroup’sbusinesssegments.

Group2008 2007

$’000 $’000

Revenue by business segment

Marine Electrical EquipmentMarine cables and accessories 69,124 56,503Marinelightingequipmentandaccessories 16,636 17,314

85,760 73,817

Marine ConsumablesMarinelamps 4,226 4,042Generalmarineconsumableproducts 4,571 4,011

8,797 8,053

Total revenue 94,557 81,870


63

ANNUAL REPORT 2008

21 SEGMENT INFORMATION (cont’d)(a) Business segments (cont’d)

Group2008 2007

$’000 $’000

Segment results


20,832 18,704

Marine ConsumablesMarinelamps 1,684 1,764Generalmarineconsumableproducts 985 820

2,669 2,584

Totalsegmentresults 23,501 21,288

Unallocatedinterestincome 8 49

Netprofitbeforetax 23,509 21,337Taxexpense (4,271) (3,821)

Netprofitforthefinancialyear 19,238 17,516

Group Assets and Liabilities

Segment assetsMarine Electrical EquipmentMarine cables and accessories 64,813 55,123Marinelightingequipmentandaccessories 14,434 13,903

Marine ConsumablesMarinelamps 3,766 3,458Generalmarineconsumableproducts 7,993 2,455

Unallocatedcorporateassets 340 414

Total assets 91,346 75,353

Segment liabilities


Marine ConsumablesMarinelamps 962 991Generalmarineconsumableproducts 1,040 983

Unallocatedcorporateliabilities 4,317 3,973

Total liabilities 25,837 24,042


64


21 SEGMENT INFORMATION (cont’d)(a) Business segments (cont’d)

Group2008 2007

$’000 $’000

Other segment information

DepreciationMarine Electrical EquipmentMarine cables and accessories 430 344Marinelightingequipmentandaccessories 104 105

Marine ConsumablesMarinelamps 26 25Generalmarineconsumableproducts 28 24

588 498

Goodwill arising from consolidation written offMarine Electrical EquipmentMarine cables and accessories – 248Marinelightingequipmentandaccessories – 76

Marine ConsumablesMarinelamps – 18Generalmarineconsumableproducts – 17

– 359

Other significant non-cash expensesMarine Electrical EquipmentMarine cables and accessories 126 506Marinelightingequipmentandaccessories 30 155


172 733

Capital expenditureMarine Electrical EquipmentMarine cables and accessories 6,768 190Marinelightingequipmentandaccessories 1,629 58


9,259 275


65

ANNUAL REPORT 2008

21 SEGMENT INFORMATION (cont’d)(b) Geographical Segments

Theturnoverbygeographicalsegmentsisbasedonthebillinglocationofcustomers.AlltheassetsandcapitalexpenditureoftheGrouparelocatedinSingapore.

ThefollowingtableprovidesananalysisoftheGroup’srevenuebygeographicalmarket,whichisanalysedbasedonthebillingaddressofeachindividualcustomer:–

Group2008 2007

$’000 $’000

Singapore 78,058 70,671South-EastAsia 7,314 3,839EastAsia 5,049 3,768MiddleEast 2,772 2,194Othercountries 1,364 1,398

94,557 81,870

OthercountriescompriseArgentina,Australia,Canada,England,Finland,France,Greece,Germany,Holland,India,Mauritius,UnitedKingdomandUnitedStatesofAmerica.

22 RECLASSIFICATION AND COMPARATIVE FIGURECertain reclassifications havebeenmade to theprior year’s consolidated financial statementsduetoachangeintheclassificationofthesellinganddistributionandadministrativeexpenses.As a result, certain line items have been amended on the face of the consolidated incomestatement.

As previouslyreported

Amountreclassified

Asreclassified

$’000 $’000 $’000

Consolidated income statements:–Sellinganddistributionexpenses 502 8,501 9,003Administrativeexpenses 11,628 (8,501) 3,127


66


23 EVENTS AFTER THE BALANCE SHEET DATESubsequenttoyearend,theGroupmadethefollowingacquisitions:–

a) 34%equityinterestinDreamMarineShipSparePartsTradingL.L.C.foraconsiderationofAED204,000;

b) 60%equity interest inZ-PowerAutomationPte. Ltd. foraconsiderationofS$450,000;and

c) 60%equityinterestinSkyHoldingPteLtdforaconsiderationofS$1,782,000.

24 AUTHORISATION OF FINANCIAL STATEMENTSThe consolidated financial statements of the Group and the balance sheet and statement ofchanges in equity of the Company for the financial year ended 31 December 2008 wereauthorisedforissueinaccordancewitharesolutionofthedirectorsdated2March2009.

StatiStiCS of ShareholDiNGSAt31December2008

67

ANNUAL REPORT 2008

DISTRIBUTION OF SHAREHOLDERS By SIZE OF SHAREHOLDINGS AS AT 10 MARCH 2009

SIZE OF SHAREHOLDINGSNO. OF

SHAREHOLDERS %NO. OFSHARES %

1–999 15 0.56 6,485 -1,000–10,000 800 29.62 4,924,515 1.1710,001–1000,000 1,867 69.12 88,555,000 21.091,000,001ANDABOVE 19 0.70 326,514,000 77.74

TOTAL 2,701 100.00 420,000,000 100.00

TWENTy LARGEST SHAREHOLDERS AS AT 10 MARCH 2009

SHAREHOLDER’S NAMENUMBER OF

SHARES HELD %

1 BENGHUIHOLDING(S)PTELTD 282,828,600 67.342 UNITEDOVERSEASBANKNOMINEESPTELTD 4,781,500 1.143 LIMHWEEHONG 3,828,690 0.914 LIMHUAYHUA 3,828,690 0.915 LIMHUIENG 3,828,690 0.916 LIMHUIPENG 3,828,690 0.917 LIMCHYEHOON 2,917,140 0.698 MAXTELHOLDINGSLIMITED 2,825,000 0.679 DBSNOMINEESPTELTD 2,364,000 0.5610 SIMYONGTENG 2,262,500 0.5411 PHILLIPSECURITIESPTELTD 2,004,500 0.4812 GOHLAYSUANGINA 1,750,000 0.4213 DBSVICKERSSECURITIES(SINGAPORE)PTELTD 1,509,500 0.3614 OCBCNOMINEESSINGAPOREPTELTD 1,503,000 0.3615 SIMYONGKIM 1,500,000 0.3616 WEEBOHHUAT 1,439,000 0.3417 GOHCHENGHIAN 1,250,000 0.3018 UOBKAYHIANPTELTD 1,242,000 0.3019 KIMENGSECURITIESPTE.LTD. 1,022,500 0.2420 GOHGUATBENG 828,000 0.20

TOTAL 327,342,000 77.94

StatiStiCS of ShareholDiNGSAt31December2008

68


SUBSTANTIAL SHAREHOLDERS

DIRECT INVESTMENT %

DEEMED INTEREST %

BengHuiHolding(S)PteLtd 282,828,600 67.34 - -LimHweeHong 3,828,690 0.91 282,828,600 67.34LimHuiEng 3,828,690 0.91 282,828,600 67.34LimHuiPeng 3,828,690 0.91 282,828,600 67.34LimHuayHua 3,828,690 0.91 282,828,600 67.34LimChyeHoon 2,917,140 0.69 282,903,600 67.36

Rule 723 of the SGx Listing Manual – Free Float

BasedontheinformationavailabletotheCompanyasat10March2009,approximately28.28%ofthe issuedShareCapitalof theCompany isbeingheldby thepublicand therefore,Rule723of theListingManualoftheSGX-SThasbeencompliedwith.

NotiCe of aNNUal GeNeral MeetiNG

69

ANNUAL REPORT 2008

NOTICE IS HEREBy GIVENthattheAnnualGeneralMeetingoftheCompanywillbeheldatBoardroom,8PenjuruLane,Singapore609189onTuesday,14April2009at10.00a.m.totransactthefollowingbusiness:–

AS ORDINARy BUSINESS

1. To receive and adopt the Audited Financial Statements of the Company forthefinancialyearended31December2008andtheReportsofDirectorsandAuditorsthereon.

(Resolution 1)

2. TodeclareaFinalDividendof1.2centsperordinaryshare(one-tiertaxexempt)forthefinancialyearended31December2008.

(Resolution 2)

3. ToapprovetheDirectors’FeesofS$300,000(31December2007:S$300,000)forthefinancialyearended31December2008.

(Resolution 3)

4. To re-elect the following Directors retiring pursuant to Article 104 of theCompany’sArticlesofAssociation:–

(a) WinstonKwekChoonLin (Resolution 4)

(b) LohWengWhye (Resolution 5)

(c) PatrickLimHuiPeng (Resolution 6)

(See Explanatory Note 1)

5. Tore-appointBakerTillyTFWLCLasauditorsoftheCompanyandtoauthorisetheDirectorstofixtheirremuneration.

(Resolution 7)

AS SPECIAL BUSINESS

To consider and, if thought fit, to pass, with or without modifications, the following resolutions asOrdinaryResolutions:–

6. ThatauthoritybeandisherebygiventotheDirectorsoftheCompanyto:

(a) (i) issueordinarysharesinthecapitaloftheCompany(“Shares”)whetherbywayofrights,bonusorotherwise;and/or

(ii) makeorgrantoffers,agreementsoroptions (collectively, “Instruments”) thatmightorwouldrequireSharestobeissued,includingbutnotlimitedtothecreationandissueof(aswellasadjustmentsto)warrants,debenturesorotherinstrumentsconvertibleintoShares,

atany timeandupon such termsandconditionsand for suchpurposesand to suchpersonsastheDirectorsmayintheirabsolutediscretiondeemfit;and

(b) (notwithstandingtheauthorityconferredbythisResolution8mayhaveceasedtobeinforce)issue Shares in pursuance of any Instrument made or granted by the Directors while thisResolution8wasinforce,

NOTICE OF ANNUAL GENERAL MEETING

70


provided that

(1) the aggregate number of Shares to be issued pursuant to this Resolution 8 (including Shares to be issued in pursuance of Instruments made or granted pursuant to this Resolution 8) does not exceed 50% of the issued Shares (excluding treasury shares) in the capital of the Company (as calculated in accordance with sub-paragraph (2) below), of which the aggregate number of Shares to be issued other than on a pro rata basis to shareholders of the Company (including Shares to be issued in pursuance of Instruments made or granted pursuant to this Resolution 8) does not exceed 20% of the issued Shares (excluding treasury shares) in the capital of the Company (as calculated in accordance with paragraph (2) below);

(2) (subject to such manner of calculation as may be prescribed by SGX-ST), for the purpose of determining the aggregate number of Shares that may be issued under paragraph (1) above, the percentage of issued Shares (excluding treasury shares) shall be based on the number of issued Shares (excluding treasury shares) in the capital of the Company at the time this Resolution 8 is passed, after adjusting for:

(i) new Shares arising from the conversion or exercise of any convertible securities or Share options or vesting of Share awards which are outstanding or subsisting at the time this Resolution 8 is passed; and

(ii) any subsequent bonus issue, consolidation or sub-division of Shares;

(3) in exercising the authority conferred by this Resolution 8, the Company shall comply with the requirements imposed by the SGX-ST from time to time and the provisions of the Listing Manual of the SGX-ST for the time being in force (in each case, unless such compliance has been waived by the SGX-ST), all applicable legal requirements under the Companies Act and otherwise, and the Articles of Association for the time being of the Company; and

(4) (unless revoked or varied by the Company in general meeting) the authority conferred by this Resolution 8 shall continue in force until the conclusion of the next Annual General Meeting of the Company or the date by which the next Annual General Meeting of the Company is required by law to be held, whichever is the earlier.

(See Explanatory Note 2) (Resolution 8)

7. That subject to the approval of the general mandate to issue shares set out in Resolution 8, authority be and is hereby given to the Directors of the Company to:

(a) (i) issue Shares whether by way of rights, bonus or otherwise; and/or

(ii) make or grant Instruments that might or would require Shares to be issued, including but not limited to the creation and issue of (as well as adjustments to) warrants, debentures or other instruments convertible into Shares,

at any time and upon such terms and conditions and for such purposes and to such persons as the Directors may in their absolute discretion deem fit; and

(b) (notwithstanding the authority conferred by this Resolution 9 may have ceased to be in force) issue Shares in pursuance of any Instrument made or granted by the Directors while this Resolution 9 was in force,


71

ANNUAL REPORT 2008

provided that:

(1) the aggregate number of Shares to be issuedpursuant to this Resolution9onapro ratabasistoshareholdersoftheCompanybywayofarenounceableissue(otherthanabonusissue) (includingShares tobeissuedinpursuanceof InstrumentsmadeorgrantedpursuanttothisResolution9)doesnotexceed100%(orsuchotherlimitpermittedbytheSGX-STfromtimetotime)oftheissuedShares(excludingtreasuryshares)inthecapitaloftheCompany(as calculated in accordancewith sub-paragraph (2) below), and in determiningwhethersuch100%limithasbeenreached,allSharestobeissuedpursuanttothisResolution9orResolution 8 (including Shares to be issued in pursuance of Instruments made or grantedpursuanttothisResolution9orResolution8)shallbetakenintoaccount(unlesstheSGX-ST’sprevailingregulationsandrequirementsotherwiseprovide);

(2) (subjecttosuchmannerofcalculationasmaybeprescribedbytheSGX-ST),forthepurposeof determining the aggregate number of Shares that may be issued under paragraph (1)above, thepercentageof issuedShares (excluding treasury shares) shallbebasedon thenumber of issuedShares (excluding treasury shares) in the capital of theCompanyat thetimethisResolution9ispassed,afteradjustingfor:

(i) newSharesarisingfromtheconversionorexerciseofanyconvertiblesecuritiesorShareoptionsorvestingofShareawardswhichareoutstandingorsubsistingatthetimethisResolution9ispassed;and

(ii) anysubsequentbonusissue,consolidationorsub-divisionofShares;

(3) in exercising theauthority conferredby this Resolution9, theCompany shall complywiththerequirements imposedbytheSGX-STfromtimeto timeandtheprovisionsof theListingManualoftheSGX-STforthetimebeinginforce(ineachcase,unlesssuchcompliancehasbeenwaivedby theSGX-ST), all applicable legal requirements under theCompaniesActandotherwise,andtheArticlesofAssociationforthetimebeingoftheCompany;and

(4) (unlessrevokedorvariedbytheCompanyingeneralmeeting)theauthorityconferredbythisResolution9shallcontinueinforceuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompanyorthedatebywhichthenextAnnualGeneralMeetingoftheCompanyisrequiredbylawtobeheld,whicheveristheearlier.


8. Thatwithoutprejudicetothegeneralityof,andpursuantandsubjecttotheapprovalofthegeneralmandatetoissueSharessetoutin,Resolution8,authoritybeandisherebygiventotheDirectorsoftheCompanytoissueSharesotherthanonapro ratabasistoshareholdersoftheCompany,atadiscounttotheweightedaveragepriceoftheSharesfortradesdoneontheSGX-STforthefullmarketdayonwhichtheplacementorsubscriptionagreementissigned(orifnotavailable,theweightedaveragepricebasedonthetradesdoneontheprecedingmarketday),exceeding10%butnotmore than20%,atany timeanduponsuch termsandconditionsandforsuchpurposesandtosuchpersonsastheDirectorsmayintheirabsolutediscretiondeemfit,


72


provided that:

(a) inexercisingtheauthorityconferredbythisResolution10,theCompanyshallcomplywiththerequirements imposedbytheSGX-STfromtimeto timeandtheprovisionsof theListingManualoftheSGX-STforthetimebeinginforce(ineachcase,unlesssuchcompliancehasbeenwaivedby theSGX-ST), all applicable legal requirements under theCompaniesActandotherwise,andtheArticlesofAssociationforthetimebeingoftheCompany;and

(b) (unlessrevokedorvariedbytheCompanyingeneralmeeting)theauthorityconferredbythisResolution10shallcontinueinforceuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompanyorthedatebywhichthenextAnnualGeneralMeetingoftheCompanyisrequiredbylawtobeheld,whicheveristheearlier.


9. To transact any other business which may properly be transacted at an Annual GeneralMeeting.

Datedthis27thdayofMarch2009

OnbehalfoftheBoard

AlvinLimHweeHongExecutiveChairman

Explanatory Notes:–

1. Theordinaryresolutioninitem4istore-electtheretiringDirectorspursuanttoArticle104oftheCompany’sArticlesofAssociation:–

(a) MrWinstonKwekChoonLinwill,uponre-electionasaDirectoroftheCompany,remainastheChairmanofNominatingCommittee,MemberoftheAuditCommitteeandRemunerationCommittee.HewillbeconsideredindependentforthepurposesofRule704(8)oftheListingManualoftheSingaporeExchangeSecuritiesTradingLimited.

(b) Mr LohWengWhyewill, upon re-election as aDirector of theCompany, remain as theChairman of Remuneration Committee,Member of the Audit Committee andNominatingCommittee.HewillbeconsideredindependentforthepurposesofRule704(8)oftheListingManualoftheSingaporeExchangeSecuritiesTradingLimited.

(c) MrPatrickLimHuiPengwill,uponre-electionasaDirectoroftheCompany,remainastheChiefOperatingOfficer.


73

ANNUAL REPORT 2008

2. Ordinary Resolution 8 is to empower the Directors, from the date of the passing of OrdinaryResolution8 to the date of the nextAnnualGeneralMeeting, to issue Shares in the capital oftheCompanyandtomakeorgrant instruments (suchaswarrantsordebentures)convertibleintoShares,andtoissueSharesinpursuanceofsuchinstruments,uptoanamountnotexceedingintotal50%oftheissuedShares(excludingtreasuryshares)inthecapitalof theCompany,withasub-limit of20%of the issuedShares (excluding treasury shares) for issues other thanonapro ratabasis toshareholders.For thepurposeofdetermining theaggregatenumberofShares thatmaybeissued, thepercentageof issuedSharesshallbebasedonthenumberof issuedShares(excludingtreasuryshares)inthecapitaloftheCompanyatthetimethatOrdinaryResolution8ispassed,afteradjustingfor(a)newSharesarisingfromtheconversionorexerciseofanyconvertiblesecuritiesorshareoptionsorvestingofshareawardswhichareoutstandingorsubsistingat thetimethatOrdinaryResolution8ispassed,and(b)anysubsequentbonusissue,consolidationorsub-divisionofShares.InexercisingtheauthorityconferredbyOrdinaryResolution8,theCompanyshallcomplywith the requirementsof theSGX-ST (unlesswaivedby theSGX-ST),allapplicablelegal requirements and theCompany’s Articles of Association. [Rule 806of the SGX-ST ListingManualpresentlyallowsalistedissuertoseekageneralmandatefromshareholdersforinter alia issuanceofnewsharesandconvertiblesecuritiesonapro-ratabasisamountingtonotmorethan50%ofitsissuedsharecapital(excludingtreasuryshares).]

3. Ordinary Resolution 9 is to empower the Directors, from the date of the passing of OrdinaryResolution9 to the date of the nextAnnualGeneralMeeting, to issue Shares in the capital oftheCompanyandtomakeorgrant instruments (suchaswarrantsordebentures)convertibleintoShares,andtoissueSharesinpursuanceofsuchinstruments,uptoanamountnotexceedingintotal100%of theissuedShares(excludingtreasuryshares) in thecapitalof theCompany,onapro ratabasistoshareholdersbywayofarenounceableissue.ForthepurposeofdeterminingtheaggregatenumberofSharesthatmaybeissued,SharesissuedpursuanttoOrdinaryResolution8shallalsobecountedindeterminingwhetherthe100%limithasbeenreached,andthepercentageofissuedSharesshallbebasedonthenumberofissuedShares(excludingtreasuryshares)inthecapitalof theCompanyat the time thatOrdinaryResolution9 ispassed,afteradjusting for (a)newSharesarisingfromtheconversionorexerciseofanyconvertiblesecuritiesorshareoptionsorvestingofshareawardswhichareoutstandingorsubsistingatthetimethatOrdinaryResolution9 is passed, and (b) any subsequent bonus issue, consolidation or sub-division of Shares. Inexercising theauthorityconferredbyOrdinaryResolution9, theCompanyshallcomplywith therequirementsoftheSGX-ST(unlesswaivedbytheSGX-ST),allapplicablelegalrequirementsandtheCompany’sArticlesofAssociation.On19February2009,theSGX-STreleasedapressreleaseofnewmeasureseffectiveon20February2009(the“PressRelease”);thenewmeasuresincludeallowingissuerstoissueupto100%ofitsissuedsharecapitalviaaproratarenounceablerightsissue, subject to the condition that the issuermakes periodic announcements on the use of theproceedsasandwhenthefundsaremateriallydisbursedandprovidesastatusreportontheuseofproceeds in itsannual report.ThePressReleasestates that thisnewmeasurewillbe ineffectuntil31December2010whenitwillbereviewedbytheSGX-ST.

4. OrdinaryResolution10istoempowertheDirectors,pursuanttothegeneralmandatetoissueSharessetoutinOrdinaryResolution8,toissueSharesotherthanonapro rata basis to shareholders of theCompany,atadiscount to theweightedaveragepriceof theShareson theSGX-ST for thefullmarketdayonwhich theplacementorsubscriptionagreement issigned(or ifnotavailable,theweightedaveragepricebasedonthetradesdoneontheprecedingmarketday),exceeding10%butnotmorethan20%.InexercisingtheauthorityconferredbyOrdinaryResolution10,theCompany shall complywith the requirements of the SGX-ST (unlesswaivedby the SGX-ST), all


74


applicablelegalrequirementsandtheCompany’sArticlesofAssociation.Rule811(1)oftheSGX-STListingManualpresentlyprovidesthatanissueofsharesmustnotbepricedatmorethan10%discounttotheweightedaveragepricefortradesdoneontheSGX-STforthefullmarketdayonwhichtheplacementorsubscriptionagreementissigned(orifnotavailable,theweightedaveragepricebasedonthetradesdoneontheprecedingmarketday).ThePressReleasealsoincludedanewmeasureallowingissuerstoundertakeplacementsofnewsharesusingthegeneralmandateto issueshares,pricedatdiscountsofup to20%,subject to theconditions that the issuerseeksshareholders’approval ina separate resolutionatageneralmeeting to issuenew sharesonanonpro-ratabasisatadiscountexceeding10%butnotmore than20%,and thegeneralshareissuemandate resolution is not conditional on this resolution.Ordinary Resolution10hasbeenincludedfollowingthisnewmeasure.ThePressReleasestatesthatthisnewmeasurewillalsobeineffectuntil31December2010whenitwillbereviewedbytheSGX-ST.

Notes:–

1. Amemberof theCompanyentitled toattendandvoteat theMeeting isentitled toappointnotmorethantwoproxiesinhis/herstead.

2. AproxyneednotbeamemberoftheCompany.3. If theappointorisacorporation,theinstrumentappointingaproxymustbeexecutedunderseal

orthehandofitsdulyauthorisedofficerorattorney.4. Theinstrumentappointingaproxymustbedepositedat theregisteredofficeof theCompanyat

8 Penjuru Lane, Singapore 609189 not later than48 hours before the time appointed for theMeeting.

BH GLOBAL MARINE LIMITED(IncorporatedintheRepublicofSingapore)

PROxy FORM

Important:1. ForinvestorswhohaveusedtheirCPFmoniestobuyBHGlobal

MarineLimited’sshares,thisAnnualReport2007isforwardedtothemattherequestoftheirCPFApprovedNomineesandissentsolelyFORINFORMATIONONLY.

2. ThisProxyFormisnotvalidforusebyCPFinvestorsandshallbeineffective for all intents and purposes if used or purported to be usedbythem.

3. CPFinvestorswhowishtovoteshouldcontacttheirCPFApprovedNominees.

I/We (Name) NRICNo./PassportNo./

CompanyRegistrationNo. of

(Address)

beingamember/membersofBHGLOBALMARINELIMITED(the“Company”),herebyappoint

Name Address NRIC/Passport No. Proportion of shareholdings to be represented by proxy (%)

*and/or

as*my/ourproxy/proxiestovotefor*me/uson*my/ourbehalfand,ifnecessary,todemandapoll,attheAnnualGeneralMeeting

oftheCompanytobeheldatBoardroom,8PenjuruLane,Singapore609189onTuesday,14April2009at10.00a.m.andatany

adjournmentthereof.

*I/Wedirect*my/ourproxy/proxiestovotefororagainsttheOrdinaryResolutionstobeproposedattheAnnualGeneralMeetingas

indicatedwithan“X”inthespacesprovidedhereunder.Ifnospecifieddirectionsastovotingaregiven,the*proxy/proxieswillvote

orabstainfromvotingat*his/theirdiscretion.

No. Ordinary Resolutions Resolution No. For Against

1. To receiveandadopt theAuditedFinancialStatementsof theCompany for the financialyearended31December2008andtheReportsofDirectorsandAuditorsthereon.

Resolution 1

2. TodeclareaFinalDividendof1.2centsperordinaryshare (one-tier taxexempt) for thefinancialyearended31December2008.

Resolution 2

3. ToapprovetheDirectors’FeesofS$300,000(31December2007:S$300,000)forthefinancialyearended31December2008.

Resolution 3

4. Tore-electthefollowingDirectorsretiringpursuanttoArticle104oftheCompany’sArticlesofAssociation:–

(a) WinstonKwekChoonLin Resolution 4

(b) LohWengWhye Resolution 5

(c) PatrickLimHuiPeng Resolution 6

5. Tore-appointBakerTillyTFWLCLasauditorsoftheCompanyandtoauthorisetheDirectorstofixtheirremuneration.

Resolution 7

6. ToempowertheDirectorstoissueSharesandtomakeorgrantinstruments(suchaswarrantsordebentures)convertibleintoShares,andtoissueSharesinpursuanceofsuchinstruments,uptoanamountnotexceedingintotal50%oftheissuedShares(excludingtreasuryshares),withasub-limitof20%oftheissuedShares(excludingtreasuryshares)forissuesotherthanonaproratabasistoshareholders.

Resolution 8

7. ToempowertheDirectorstoissueSharesandtomakeorgrantinstruments(suchaswarrantsordebentures)convertibleintoShares,andtoissueSharesinpursuanceofsuchinstruments,up to an amount not exceeding in total 100% of the issued Shares (excluding treasuryshares),onapro ratabasistoshareholdersbywayofarenounceableissue.

Resolution 9

8. To empower the Directors, pursuant to the general mandate to issue Shares set out inOrdinaryResolution8, to issueSharesother thanonapro rata basis to shareholders of theCompany,atadiscountexceeding10%butnotmorethan20%.

Resolution 10

Datedthis dayof 2009

Total number of Shares Held

Signature/CommonSealofMember(s)

* Delete accordingly.

Notes:–

1. AmemberoftheCompanyentitledtoattendandvoteattheAnnualGeneralMeetingisentitledtoappointnotmorethantwoproxies

toattendandvoteinhisstead.SuchproxyneednotbeamemberoftheCompany.

2. WhereamemberoftheCompanyappointstwoproxies,heshallspecifytheproportionofhisshareholding(expressedasapercentage

ofthewhole)toberepresentedbyeachsuchproxy.

3. Theinstrumentappointingaproxyorproxiesmustbeunderthehandoftheappointororofhisattorneydulyauthorisedinwriting.

Wheretheinstrumentappointingaproxyorproxiesisexecutedbyacorporation,itmustbeexecutedeitherunderitscommonseal

orunderthehandofitsattorneyordulyauthorisedofficer.

4. AcorporationwhichisamemberoftheCompanymayauthorisebyresolutionofitsdirectorsorothergoverningbodysuchperson

asitthinksfittoactasitsrepresentativeattheAnnualGeneralMeeting,inaccordancewithitsArticlesofAssociationandSection

179oftheCompaniesAct,Chapter50ofSingapore.

5. Theinstrumentappointingproxyorproxies,togetherwiththepowerofattorneyorotherauthority(ifany)underwhichitissigned,or

notariallycertifiedcopythereof,mustbedepositedattheregisteredofficeoftheCompanyat8PenjuruLane,Singapore609189

notlaterthan48hoursbeforethetimesetfortheAnnualGeneralMeeting.

6. Amembershouldinsertthetotalnumberofsharesheld.IfthememberhassharesenteredagainsthisnameintheDepositoryRegister

(asdefinedinSection130AoftheCompaniesAct,Chapter50ofSingapore),heshouldinsertthatnumberofshares.Ifthemember

hassharesenteredinhisnameintheRegisterofMembersof theCompany,heshouldinsert thatnumberofshares. If themember

hassharesenteredagainsthisnameintheDepositoryRegisterandsharesregisteredinhisnameintheRegisterofMembersofthe

Company,heshouldinserttheaggregatenumberofshares.Ifnonumberisinserted,thisformofproxywillbedeemedtorelateto

allthesharesheldbythememberoftheCompany.

7. TheCompany shall beentitled to reject the instrumentappointingaproxyorproxies if it is incomplete, improperly completedor

illegibleorwhere the true intentionsof theappointorare notascertainable from the instructionsof theappointor specified in the

instrumentappointingaproxyorproxies.Inaddition,inthecaseofmembersoftheCompanywhosesharesareenteredagainsttheir

namesintheDepositoryRegister,theCompanymayrejectanyinstrumentappointingaproxyorproxieslodgedifsuchmembersare

notshowntohavesharesenteredagainsttheirnamesintheDepositoryRegister48hoursbeforethetimesetforholdingtheAnnual

GeneralMeetingascertifiedbyTheCentralDepository(Pte)LimitedtotheCompany.

8. ADepositorshallnotberegardedasamemberoftheCompanyentitledtoattendtheAnnualGeneralMeetingandtospeakand

votethereatunlesshisnameappearsontheDepositoryRegister48hoursbeforethetimesetfortheAnnualGeneralMeeting.

contents

01 Corporate Profile02 Company’s Business05 Geographical Market06 Chairman’s Statement08 Financial Review 10 Board of Directors12 Senior Management14 Financial Highlights15 Corporate Information16 Financial Contents17 Corporate Governance Report28 Directors’ Report31 Statement by Directors32 Independent Auditor’s Report33 Consolidated Income Statement34 Balance Sheets35 Statements of Changes in Equity36 Consolidated Cash Flow Statement38 Notes To The Financial Statements67 Statistics of Shareholdings69 Notice of Annual General Meeting Proxy Form

BH GLOBAL MARINE LIMITED

No. 8 Penjuru Lane, Singapore 609189

Registration No: 200404900H

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