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CREATINGGREATERVALUE

Contents 1 Financial Highlights 2 Group CEO’s Message 5 Company Profi le 6 Review of Operations 8 Board of Directors 10 Key Management 12 Corporate Information 13 Financial Statements

4% Others

FY 2006

Revenue By Geographical Regions

Financial Highlights

FY 2005

40% Singapore

37% China

34% Taiwan

2% Malaysia3% Korea

6% Japan

41% China

14% Taiwan

3% Malaysia2% Others

14% Singapore

1Advance SCT Limited Annual Report 2006

REVENUE GROSS PROFIT

S$ ‘000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

0

S$ ‘000

12

10

8

6

4

2

0

FY 2006 FY 2005 FY 2004

S$ S$ S$

INCOME STATEMENT

Revenue 114,129,900 33,888,248 15,314,497

Gross Profi t 11,614,343 6,998,716 4,674,167

Profi t before tax 4,451,655 4,675,530 2,863,198

Profi t after tax 3,770,809 4,123,530 2,297,398

BALANCE SHEET

Property, plant and equipment 23,980,141 9,287,400 3,334,973

Investment in associated company 1,432,802 - -

Other non current assets 2,331,001 - -

Current assets 91,713,546 21,283,419 8,792,573

Total assets 119,457,490 30,570,819 12,127,546

Current liabilities 68,170,688 14,738,487 6,722,139

Non-current liabilities 17,458,861 3,984,027 805,349

Total liabilities 85,629,549 18,705,514 7,527,488

Shareholders’ equity 33,827,941 11,865,305 4,600,058

Earnings per share (cents) 2.54 6.07 3.03

Net tangible asset per share (cents) 14.96 12.50 6.10

FY2004 FY2005 FY2006

15,314

33,888

114,129

6,998

11,614

4,674

FY2004 FY2005 FY2006


2 Advance SCT Limited Annual Report 2006

THE GROUP IS DRIVEN TO CONSTANTLY

INNOVATE AND UPGRADE SERVICES

TO MEET AND EXCEED CUSTOMERS’

EXPECTATIONS, AS WELL AS ENSURE

THAT JOINT EFFORTS WITH OUR

STAKEHOLDERS WILL RESULT IN VALUE

CREATION FOR ALL PARTIES INVOLVED.

Group CEO’s Message



I am pleased to bring you our annual

report covering the full year ended 30

June 2006. The year has indeed been

an exciting one for the ASCT Group as it

focused on establishing itself in Asia as

well as transforming and expanding its

business model.

The Group has since its IPO in November

2004, expanded from Singapore to a

geographical coverage that includes, two

sales offi ces and a testing centre in PRC,

a sales offi ce in Taiwan, two testing centres

in South Korea, a testing centre in Thailand.

This provides the Group with an enhanced

ability to service our customers in their key

geographies.

The Group is pleased that these efforts have

been recognised and a member company

of the Group has since been awarded by

IE Singapore as one of Singapore’s largest

internationalised companies under the

“Singapore International 100” award as

well as its International Global Trader’s

program.

REVIEW OF RESULTS

The Group put in another set of

commendable results for the year in

review. Group revenue grew by 235% from

S$34 million to S$114 million in the current

fi nancial year while gross profi t increased

by 66% from S$7 million to S$11.6 million.

Although the acquisition of Foshan

Chengan did not materialise, with ASCT’s

successful 100% takeover of Green World

Holdings Limited in August 2006, the group

has now expanded into two synergistic

businesses, namely:

• PCB testing and fi nishing services and,

• Copper Supply Chain Management and

Recycling

Green World Holdings Limited, the Group’s

subsidiary, also recently announced a

revenue of S$204 million for Its Half Year

ending 30 June 2006. The Group’s business

is expected to continue to grow signifi cantly

with the consolidation of its acquisitions

and expansion of its businesses.

The strategy of leveraging on ASCT’s

original customer base to grow the

recycling business is currently in progress.

ASCT’s customers are highly dependent

on copper as one of the core material used

in the manufacture of PCBs. These same

customers generate a sizeable portion of

copper based scrap as well. As such, our

group is continuing our efforts to extract

the synergies between the two lines of

businesses.

In addition, the Group will continue to pursue

its strategy of both organic growth as well

as synergistic acquisitions to continue

growing these two core businesses.

GROWING THE BUSINESS

With the acquisition of the Green World

Group, the ASCT group is now leveraging

its direct geographical presence in

PRC, Taiwan, South Korea, Thailand and

Singapore to complement and scale up on

the collection and processing of recyclable

copper and other materials.

The Group’s plans to build a 36,000

metric tonne per annum capacity refi nery

and integrated manufacturing plant in

Singapore. This follows from its continuing

strategy to add further value to its supply

chain. With the completion of the integrated

plant, the Group will be able to enjoy an

enhancement to its current supply chain, to

include refi ning and manufacturing.



THE GROUP WILL CONTINUE TO PURSUE

ITS STRATEGY OF BOTH ORGANIC GROWTH

AS WELL AS SYNERGISTIC ACQUISITIONS

TO CONTINUE GROWING THESE TWO CORE

BUSINESSES.

The Group will also continue to review and

capitalise on synergistic opportunities to

continue its growth.

MOVING FORWARD

For the purpose of enhancing the expertise

and experience in the Board, I am pleased

to announce the appointment of Mr Tan

Kim Seng as the new non-executive

Chairman of the Board. Mr Tan brings with

him an enviable track record in growing KS

Energy and its subsidiaries and associate

companies. I will now relinquish my

appointment as Group Chairman and focus

on my role as the Group Chief Executive

Offi cer.

I am also pleased to announce the

appointment of Ms Lee Ai Boon as our new

independent director. She brings to the

Board her numerous years of experience

including the Treasury Operations Manager

in ExxonMobil and other MNCs.

With the expanded and enhanced Board

and management team, the expansion of

the Group’s business and supply chain, the

Group looks forward to continued growth

for the year ahead.

IN APPRECIATION

FY2006 has been another milestone year

for the Group, the most signifi cant being

the successful acquisition of Green World

Holdings Limited and transformation

of the Group into one with another key

business driver, being that of Supply Chain

Management.

In appreciation to our shareholders and

investors for their support and confi dence,

we have proposed a fi rst and fi nal dividend

of 0.7 cents per share, an increased

dividend payout from last year after taking

into account the bonus issue of 1 new share

for 2 existing ordinary shares completed in

November 2005.

On behalf of the Board, I thank the staff of

Advance SCT Limited for their dedication

and contribution for the performance of

the Group in FY2006. I would also like

to extend our sincere gratitude to our

customers, business associates, and all

those that have contributed to the success

of Advance SCT in the year under review.

I look forward to your continued support in

the years ahead.

Terence Tea Yeok KianGroup Chief Executive Offi cer

“

”



Profi le

Our Group’s growth has been supported by our Group’s strength in material

sourcing, processing, logistics, marketing, distribution and risk management.

The Group is also in the process of expanding its supply chain to copper refi ning

and manufacturing.

The Group has consistently delivered signifi cant and consistent growth over the

last few years through organic growth as well as acquisitions, and intends to

continue with this successful strategy.

Since our listing on 24th November 2004, with an enhanced platform, an

experienced and dedicated team and an enviable track record, the Group

looks forward to working on growing the Group’s profi tability, expanding the

supply chain we manage, creating greater shareholder’s value and enhancing

environmental protection through our recycling operations company.

Advance SCT Limited (“ASCT”) is a global copper supply chain manager. The Group provides a complete copper material solution from global sourcing, processing and global sales and distribution of copper materials and related products. The supply chain was a natural evolution from its original business of providing printed circuit board (“PCB”) testing and fi nishing services to PCB manufacturers, that both consume and generate copper related material in the course of their business. The supply chain now forms the signifi cantly larger part of the Group’s business.



Review of Operations

July 2005 marks the beginning of an exciting year for the Group. It saw the acquisition of

the Group’s subsidiaries in Taiwan and Korea. In the pursuit of its strategy to expand the

Group through both acquisition and organic growth, this was followed by the purchase

of a 29% stake in Green World Holdings Limited in September 2005. In February 2006,

the Group made an unconditional voluntary offer for the remaining 71% of the shares of

Green World Holdings. The acquisition was successfully completed in June 2006 where

the Group acquired a 98.5 % stake by the end of the fi nancial year. Subsidiaries were also

set up in Thailand and PRC.

Revenue for the current fi nancial year increased from S$34 million to S$114 million, an

increase of S$80 million or 235%. Revenue from testing and fi nishing services remain

strong, an increase of S$2.7m or 33%.

Revenue Recycling and distribution of

materials

Testing and fi nishing services

Total

S$ S$ S$

FY 2006 103,210,340 10,919,560 114,129,900

FY 2005 25,697,889 8,190,359 33,888,248

In line with our strategy to expand overseas, revenue from outside Singapore increased

from S$20 million in FY2005 to S$98 million in FY2006 which comprised 86% of our

revenue as compared to 60% in the previous fi nancial year.

Revenue (by geographical region)

FY 2006 FY 2005

S$ % S$ %

Singapore 15,940,763 14 13,498,161 40

Malaysia 2,107,126 2 1,072,360 3

Taiwan 38,854,266 34 4,749,147 14

PRC 41,897,636 37 13,785,075 41

Japan 6,858,618 6 - -

Korea 3,430,986 3 - -

Others 5,040,505 4 783,499 2

114,129,900 100 33,888,248 100



Gross Profi t of the Group improved from S$7 million to S$11.6 million, an increase of S$4.6

million or 60%. Contribution from the Group’s testing and fi nishing services remained

signifi cant giving a gross profi t of S$5.4 million which translated into a gross margin of

49.6%.

Gross Profi t Recycling and distribution of

materials

Testing and fi nishing services

Total

S$ S$ S$

FY 2006 6,197,187 5,417,156 11,614,342

FY 2005 2,327,385 4,671,331 6,998,716

Net tangible assets of the Group improved by 157% from S$11.9 million to S$30.5 million.

Tangible asset per share improved from 12.5 cents to 14.5 cents. The number of shares in

issue was 210,701,390 as compared to 94,573,900 in the previous fi nancial year.

The Company will continue to focus on scaling up its recycling and supply chain business

through the establishment of more collection centres as well as more partners, globally.

The expected increase in recyclable material stream can be matched by the new and

additional 260,000 sq ft recycling plant situated in Kranji, Singapore. This was completed

in September 2006, thereby expanding the Group’s capacity in Singapore, from 160,000

sq ft by more than 100%, to 420,000 sq ft.

As part of its strategy to increase the Group’s value added component in our supply

chain, Advance SCT has incorporated a company, Singapore Copper Technologies Pte

Ltd. to spearhead it’s initiatives in refi ning and manufacturing. In addition, it is working

with various research facilities to setup the “SCT Materials Innovation Centre” to focus on

the development of applications for recycled and refi ned materials to further enhance its

supply chain.

With the establishment of a IC substrate testing plant in Kunshan, PRC, the Group is now

well positioned in the IC substrate testing technologies capabilities.

Barring any unforeseen circumstances, the Group expects the market conditions to remain

positive and and looks towards an inprovement in its performance.



standing left to right:

MR NEO GIM KIONGIndependent Director

MR LEE BON LEONGIndependent Director

MR SEAH HOCK THIAMExecutive Director

MR SAMUEL ANG KING WEEExecutive Director and Chief Operating Offi cer

Board of Directors

seated left to right:

MS LEE AI BOONIndependent Director

MR TAN KIM SENGNon-Executive Chairman

MR TERENCE TEA YEOK KIANExecutive Director and Group Chief Executive Offi cer

MS SIM AI LENG (SHEN AILING)Executive Director



MR TAN KIM SENGNon-Executive Chairman

Mr Tan Kim Seng joined our Group on 29

August 2006. He is the founder and former

Executive Chairman of KS Energy Services

Ltd. He started the industrial hardware

business in 1974 and subsequently

expanded its range of business to rig

refurbishment, oil and gas equipment,

hydraulic equipment, spares and parts

and instrumentation. He has more than 30

years of experience in the trading business

and has been instrumental in spearheading

the growth of KS Energy Services Group.

He is crucial in formulating the business

strategies and directions of the KS Energy

Services Group. Besides his business

interest, he is also involved in grass root

organizations. He is currently the Patron

of Hong Kah North Citizens’ Consultative

Committee. He graduated from the

Nanyang University with a Bachelor of

Science Degree in Mathematics in 1974.

MR TERENCE TEA YEOK KIANExecutive Director and

Group Chief Executive Offi cer

Mr Terence Tea Yeok Kian is the founder

and Group Chief Executive Offi cer of the

Advance SCT Group and has 12 years of

extensive experience in the PCB industry.

As Group Chief Executive Offi cer, he is

responsible for the overall operations,

management, strategic planning and

development of our Group. He is the

driving force behind our Group’s business

initiatives and has been instrumental in the

Group’s growth since its inception through

his active involvement in all aspects

of the business. The Group started off

by offering printed circuit board (PCB)

testing services, distributes PCB related

materials and equipment and rents PCB

related equipment. Under his leadership,

the Group transforms its business model

into a complete material supply chain

management (“SCM”) company in the fi eld

of copper with a few recent acquisitions,

including Green World Holdings Limited,

a metal recycling company listed on SGX-

SESDAQ.

In addition, he was awarded as a fi nalist in

the Shell Livewire Young Business Startup

Award 2001. Mr Tea is an honorary patron

of the Singapore Productivity Association

as well as the Deputy Chairman of the

Eng Yong Tong Tay Si Association and the

Treasurer of Singapore WuShu Federation.

He holds a Diploma in Electronics and

Electrical Engineering from Singapore

Polytechnic

MR SEAH HOCK THIAMExecutive Director

Mr Seah Hock Thiam was appointed

Executive Director on 29 September

2006. He is the founder of Green World

Holdings Limited and has more than 20

years of experience in the metals recycling

business. He is responsible for the Group’s

recycling business and operations.

MR SAMUEL ANG KING WEEExecutive Director and

Chief Operating Offi cer

Mr Samuel Ang is the Chief Operating

Offi cer of our Group. He is responsible for

the integration of the recycling operation

into the ASCT group. He is also responsible

for the acquisition activities conducted

by the Group. He was formally the Chief

Operating Offi cer of an aerospace related

group. Prior to this, he was an Executive

Director of a regional high technology

group and was also holding a management

position at Union Bank of Switzerland as

well as an engineering position in Hewlette

Packard Singapore. He holds a Bachelor

of Engineering (Electrical and Electronics)

from the National University of Singapore

MS SIM AI LENG (SHEN AILING)Executive Director

Ms Sim Ai Leng has developed extensive

experience in the industry and responsible

for the sales operations of the Group where

she is primarily responsible for international

sales. Prior to joining us, she was in charge

of the sales and marketing department in

a manufacturing company. She holds a

Bachelor of Science Degree in Chemistry

from the National University of Singapore.

MR LEE BON LEONGIndependent Director

Mr Lee Bon Leong joined our Group on 20

September 2004. He is a Senior Partner

in Lee Bon Leong & Co. Mr Lee serves as

a member of the Singapore Law Society’s

Conveyancing Practice Committee. Mr Lee

was appointed as an Assistant Registrar of

the Small Claims Tribunal on 2 November

1998 and he also served as a Referee for

the period 11 October 1999 to 10 October

2000. He is active in public service activities

and is currently a member of the Volunteers

and Social Services Committee of the

Chinese Development Assistance Council.

Mr Lee has been appointed a Justice of the

Peace by the President of Singapore since

November 1998 and serves as a member of

the Board of Visiting Justices and the Board

of Inspection. He has been a member of

the Panel for the Disciplinary Committee of

Enquiry, Public Service Commission from

August 2000. Mr Lee has a Masters of Law

from the University of Singapore.

MS LEE AI BOONIndependent Director

Ms Lee Ai Boon joined our Group on

29 August 2006 Ms Lee is the former

Treasury Operations Manager for Asia

Pacifi c Treasury Centre, ExxonMobil. She

has more than twenty years experience in

multinational oil companies. Throughout

her career, she has worked in the United

States, Hong Kong and Singapore, holding

various positions including Manager

Treasury Services for Mobil Asia Pacifi c

Pte Ltd, Treasurer for Mobil Oil Hong Kong,

Financial Accounting Manager for Mobil

Oil Singapore and Financial Advisor for

Mobil’s head offi ce in Fairfax, Virginia USA.

Her functional responsibilities covered

Treasury Operations, Corporate Planning,

Accounting and Auditing. She graduated

from the University of Singapore with a

degree in Accounting.

MR NEO GIM KIONGIndependent Director

Mr Neo Gim Kiong joined our Group on

20 September 2004. He is currently the

Managing Director of Dollar Tree Inc Pte

Ltd. He is also the director of Ban Leong

Technologies Ltd, where he overseas

fi nance and merger and acquisition

activities. Prior to that, he was an Executive

Director with Jackspeed Corporation

Limited from 2001 to August 2004 and was

responsible for corporate development,

planning and fi nance. From 1994 to 2001,

he was with the banking sector overseeing

a portfolio of corporate clientele. He

holds a Bachelor of Science Degree in

Mathematics (Honours) from the National

University of Singapore.



Key Management

MS FOO LEE PENGChief Financial Offi cer

Ms Foo Lee Peng is responsible for the

Group’s accounting and fi nance functions.

She has more than 20 years experience

in the fi eld of accounting and fi nance.

She holds a Bachelor of Accountancy

(Honours) from the University of Singapore

and a Bachelor of Law (Honours) from the

University of London. She is a member of

the Institute of Certifi ed Public Accountants

of Singapore.

MS LEE POH CHOOExecutive Director of

Tsing Yi Enterprise Pte Ltd

Ms Lee oversees the operations of Tsing Yi

Enterprise Pte Ltd. She has more than 10

years experience in the ferrous and non-

ferous scrap metal industry.

MR SHIGEKADO FURUYAGeneral Manager, Business Development

Mr Furuya joins the Group on 1 October

2006 and is responsible for the identifi cation

and development of new market and

business expansion. He has more than

20 years of wide-ranging experience in the

PCB and related industries; encompassing

functions such as purchasing, production

and sales. Mr Furuya has an established

and extensive business network of

customers and suppliers globally. Prior to

joining the Group, he was the Managing

Director for Aristo Engineering Pte Ltd. He

holds a Bachelor Degree in Electronics

Engineering from the Kanazawa Institute of

Technology.

MR FREDRIC CHEW BOON PING General Manager of

Tsing Yi Enterprises Pte Ltd

Mr Chew is responsible for the operations of Tsing Yi Enterprises

Pte Ltd. He has more than 13 years of experience in metals trading.

He has an extensive business network of customers and suppliers

in Asia and the Middle East.



MR CHANG TE LUNGGeneral Manager of SCT Western (Taiwan) Pte Ltd

Mr Chang is responsible for the operations

of the Group’s business in Taiwan. He

has more than 20 years of extensive

experience in the PCB industry, in the

areas of management and operations

of PCB factories. He has an established

and extensive network of customers and

suppliers in China and Taiwan.

MS MONICA TEAGeneral Manager of SCT Technologies Pte Ltd (Singapore)

Ms Tea is responsible for the operations

of SCT Technologies Pte Ltd. Ms Tea

has extensive years of comprehensive

experience in the PCB and PCBA industry.

She was involved in production, quality,

technical and business development. She

holds a Bachelor Degree of Commerce

from the Nanyang University and a Master

of Accountancy from the University of

Dundee (UK) and Certifi cate of Internal

QMS Auditor from PSB.

MR ANDEW OHGeneral Manager of SCT Innodea(Korea) Limited

Mr Oh is responsible for the Group’s

operations in Korea. He is also responsible

for futher expansions and business

development in Korea. He has more than

8 years experience in the AOI inspection

services in Korea. He holds a Bachelor of

Commerce Degree from the University of

Western Sydney.

MR ALLEN HUANG General Manager of SCT Technologies (Kunshan) Limited

Mr Huang is responsible for the management and operations and of the subsidiary, SCT

Technologies (Kunshan) Limited. He has 9 years experience in the fi elds of IC Substrate,

TAPE & FPC and TFL/LCD Flat Panel industry as well as the assembly function test

machine. He is responsible for developing the Group’s substrate testing business in

Shanghai. He holds a diploma in Mechanical Engineering from Nan-Ya Junior College of

Technology, Taiwan.

MR JACKY WU General Manager of SCT Technologies (Thailand) Co., Ltd

Mr Wu is responsible for the Group’s operations in Thailand. He has 18 years of extensive

experience in the PCB industry and has more than 10 years of experience in Thailand. He

has developed a wide network of customers for PCB services in South East Asia. He holds

a Bachelor of Engineering (Chemical Engineering) Degree from the University of Taiwan.


Corporate InformationBOARD OF DIRECTORSTan Kim Seng Non Executive Chairman

Terence Tea Yeok Kian Group Chief Executive Offi cer

Samuel Ang King Wee Chief Operating Offi cer

Seah Thiam Hock Executive Director

Sim Ai Leng Executive Director

Lee Bon Leong Independent Director

Lee Ai Boon Independent Director

Neo Gim Kiong Independent Director

AUDIT COMMITTEENeo Gim Kiong (Chairman)Lee Bon LeongSamuel Ang King Wee

REMUNERATION COMMITTEELee Bon Leong (Chairman)Neo Gim KiongTerence Tea Yeok Kian

NOMINATING COMMITTEELee Bon Leong (Chairman)Neo Gim KiongTerence Tea Yeok Kian

COMPANY SECRETARYNita Sim Geok Hoon, ACIS, MBA

REGISTERED OFFICE6 Tuas View Circuit Singapore 637599

AUDITORSBDO Raffl esCertifi ed Public AccountantsPartner-in-charge: Chia Soo Hien

SHARE REGISTRAR / SHARE TRANSFER AGENTLim Associates (Pte) Ltd10 Collyer Quay #19-08 Ocean Building Singapore 049315

LEGAL ADVISORS TO THE COMPANYDrew & Napier LLC20 Raffl es Place #17-00 Ocean Towers Singapore 048620

Singapore Copper Technologies Core Business: • Copper Refi ning • Copper Finished Products • Copper Research & Development

PEOPLE’S REPUBLIC OF CHINASCT Technologies (Kunshan) Limited Core Business: • PCB Testing & Finishing Services • Scrap Collection Centre

KOREASCT Innodea (Korea) LimitedCore Business: • Outsourcing Service • Rental • Distribution • Scrap Collection Centre

TAIWANSCT Western (Taiwan) Pte LtdCore Business: • Outsourcing Service • Rental • Distribution • Scrap Collection Centre

HONG KONGSCT Technologies (HK) LimitedCore Business: • Outsourcing Service • Rental • Distribution • Scrap Collection Centre

THAILANDSCT Technologies (Thailand) Co LtdCore Business: • PCB Testing & Finishing Services • Scrap Collection Centre

TSMP Law Corporation6 Battery Road #33-01 Singapore 049909

Colin Ng & Partners50 Raffl es Place#29-00 Singapore Land TowersSingapore 048623

PRINCIPAL BANKERSUnited Overseas Bank 80 Raffl es Place UOB Plaza Singapore 048624

Oversea-Chinese Banking Corporation Limited65 Chulia Street Singapore 049513

Standard Chartered Bank6 Battery Road #07-00 Singapore 049909

Moscow Narondy Bank50 Robinson Road MNB Building Singapore 068882

GROUP COMPANIES:

SINGAPORESCT Technologies Pte LtdCore Business: • Outsourcing Service • Rental • Distribution • Scrap Collection Centre

Tsing Yi Enterprises Pte LtdCore Business: • Recycling of Copper, Aluminum and other Metals

Tsingtech Recycling Pte LtdCore Business: • Recycling of Copper, Aluminum and other Metals

Seah Metal Industries Pte LtdCore Business: • Recycling of Copper, Aluminum and other Metals • Distribution

A-SCT Semicon Recycling Industries Pte LtdCore Business: • Collection of Semiconductor Scrap



Financial Contents

Financials 14 Report of the Directors 17 Statement by the Directors 18 Auditors’ Report 19 Balance Sheets 20 Consolidated Profit & Loss Account 21 Statements of Changes in Equity 23 Consolidated Cash Flow Statement 25 Notes to the Financial Statements 55 Corporate Governance Statement 63 Statistics of Shareholdings 64 Notice of Annual General Meeting • Proxy Form

WE BELIEVE THAT IN AN INCREASINGLY COMPETITIVE BUSINESS ENVIRONMENT, ESTABLISHING STRATEGIC ALLIANCES AND JOINT VENTURES WITH BUSINESS PARTNERS OR MAKING INVESTMENTS IN NEW OPPORTUNITIES WILL BE CRITICAL IN ENABLING OUR GROUP TO ACHIEVE ECONOMIES OF SCALE, ENLARGE OUR CUSTOMER BASE AND FACILITATE IMPROVEMENTS IN OUR TECHNOLOGY AND PROCESSES.


The Directors of the Company present their report to the members together with the audited financial statements of the Group and the statement of changes in equity of the Company for the financial year ended 30 June 2006 and the balance sheet of the Company as at 30 June 2006.

1. Directors

The Directors of the Company in office at the date of this report are:

Tea Yeok Kian Sim Ai Leng (Shen Ailing) Samuel Ang King Wee Lee Bon Leong Neo Gim Kiong Tan Kim Seng (Appointed on 29 August 2006) Lee Ai Boon (Appointed on 29 August 2006) Seah Hock Thiam (Appointed on 29 September 2006)

2. Arrangementstoenabledirectorstoacquiresharesanddebentures

Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose object is to enable the Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other corporate body.

3. Directors’interestsinsharesordebentures

According to the register of Directors’ shareholding kept by the Company for the purposes of Section 164 of the Singapore Companies Act, Cap. 50 (the “Act”), the Directors of the Company who held office at the end of financial year interest in the shares or debentures of the Company and its related corporations are as follow:

Shareholdingsinwhich Shareholdingsregistered Directorsaredeemed inthenameofDirectors tohaveaninterest

Balanceasat Balanceasat Balanceasat Balanceasat 1July2005 30June2006 1July2005 30June2006TheCompany Numberofordinaryshares Tea Yeok Kian 51,275,880 73,658,820 - -Sim Ai Leng (Shen Ailing) 3,598,340 5,397,510 - -Samuel Ang King Wee 150,000 225,000 75,000 112,500Lee Bon Leong 500,000 750,000 - -Neo Gim Kiong 150,000 225,000 - -

By virtue of Section 7 of the Act, Mr Tea Yeok Kian are deemed to have interests in the shares of all the subsidiaries of the Company, as at the beginning and end of the financial year.

In accordance with the continuing listing requirements of the Singapore Exchange Securities Trading Limited, the Directors of the Company state that, according to the register of Directors’ shareholdings, the Directors’ interests as at 21 July 2006 in the shares of the Company or its related corporations have not changed from those disclosed as at 30 June 2006.

Ms Sim Ai Leng (Shen Ailing) is the wife of Mr Tea Yeok Kian. As she is also a Director of the Company, Mr Tea need not be deemed interested in Ms Sim’s shares. Likewise Ms Sim need not be deemed interested in Mr Tea’s shares, pursuant to section 164 (15) of the Companies Act, Cap. 50.

Report of the Directors


4. Directors’contractualbenefits

Since the end of previous financial period, no Director of the Company has received or become entitled to receive a benefit by reason of a contract made by the Company or by a related corporation with the Director or with a firm of which he is a member, or with a company in which the Director has a substantial financial interest, except as disclosed in the financial statements.

5. Shareoptions

There were no share options granted by the Company or its subsidiaries during the financial year.

There were no shares issued during the financial year by virtue of the exercise of options to take up unissued shares of the Company or its subsidiaries.

There were no unissued shares of the Company or its subsidiaries under option as at the end of the financial year.

6. Auditcommittee

The Audit Committee comprised the following members, a majority of whom are Non-Executive Directors and including the Chairman, are Independent Directors.

Neo Gim Kiong (Chairman) Lee Bon Leong Samuel Ang King Wee

The Audit Committee performs the functions specified in Section 201B(5) of the Act. In performing those functions, the Audit Committee reviewed the audit plans and the overall scope of examination by the external auditors of the Group and of the Company. The Audit Committee also reviewed the independence of the external auditors of the Company and the nature and extent of the non-audit services provided by the external auditors and in the opinion of the audit Committee, these services do not affect the independence of the external auditors.

The Audit Committee also reviewed the assistance provided by the Company’s officers to the external auditors and the consolidated financial statements of the Group, the balance sheet and statement of changes in equity of the Company for the financial year ended 30 June 2006 as well as the external auditor report on these financial statements thereon prior to their submission to the Directors of the Company for adoption.

The Audit Committee has recommended to the Board of Directors the nomination of BDO Raffles for re-appointment as external auditors of the Company at the forthcoming Annual General Meeting.



7. Auditors

The auditors, BDO Raffles, have expressed their willingness to accept re-appointment.

On behalf of the Board of Directors

________________________________ __________________________________TeaYeokKian SimAiLeng(ShenAiling)Director Director

Singapore5 October 2006



We state that, in the opinion of the Directors of Advance SCT Limited,

(a) the accompanying balance sheets, consolidated profit and loss account, statements of changes in equity and consolidated cash flow statement together with the notes thereon are drawn up so as to give a true and fair view of the state of affairs of the Group and of the Company as at 30 June 2006 and of the results and cash flows of the Group, and changes in equity of the Group and of the Company for the financial year ended on that date; and

(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due.

On behalf of the Board of Directors

________________________________ __________________________________TeaYeokKian SimAiLeng(ShenAiling)Director Director


Statement by the Directors


We have audited the accompanying financial statements of Advance SCT Limited (the “Company”) and its subsidiaries (the “Group”) set out on pages 19 to 54 comprising the consolidated financial statements of the Group and the balance sheet as at 30 June 2006 of the Company and statement of changes in equity of the Company for the financial year then ended. These financial statements are the responsibility of the Company’s Directors. Our responsibility is to express an opinion on these financial statements based on our audit.

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

In our opinion,

(a) the consolidated financial statements of the Group and the balance sheet and statement of changes in equity of the Company are properly drawn up in accordance with the provisions of the Singapore Companies Act, Cap. 50 (the “Act”) and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Company as at 30 June 2006 and the results, changes in equity and cash flows of the Group and the changes in equity of the Company for the financial year ended on that date; and

(b) the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.

BDORafflesCertified Public Accountants


Auditors’ Report to the Members of Advance SCT Limited


Group Company 2006 2005 2006 2005 Note $ $ $ $

Non-currentassetsProperty, plant and equipment 3 23,980,141 9,287,400 - -Intangible assets 4 2,287,985 - 50,000 -Investment in subsidiaries 5 - - 34,697,206 6,693,981Investment in joint venture 6 - - - 301,151Investment in associate 7 1,432,802 - 1,345,092 -Deferred tax assets 8 43,016 - - -

27,743,944 9,287,400 36,092,298 6,995,132

CurrentassetsInventories 9 11,651,239 1,600,321 - -Trade and other receivables 10 61,703,498 14,379,698 4,748,931 9,368Deposit for investment 11 - 1,399,990 - 1,399,990Cash and bank balances 18,349,150 3,903,410 5,965,506 985,273Interest rate swap 12 9,659 - - -

91,713,546 21,283,419 10,714,437 2,394,631

Less : CurrentliabilitiesTrade and other payables 13 5,667,070 3,043,129 1,118,081 436,195Interest-bearing liabilities 14 59,054,096 10,665,697 7,981,269 -Current income tax payable 3,449,522 1,029,661 - -

68,170,688 14,738,487 9,099,350 436,195

Netcurrentassets 23,542,858 6,544,932 1,615,087 1,958,436

Non-currentliabilitiesInterest-bearing liabilities 14 (16,517,306) (3,680,827) (9,852,270) -Deferred tax liabilities 8 (906,620) (286,200) - -Provision for employee benefits 15 (34,935) - - -

(17,458,861) (3,967,027) (9,852,270) -

Netassets 33,827,941 11,865,305 27,855,115 8,953,568

Capitalandreserves Share capital 16 25,950,226 4,737,695 25,950,226 4,737,695Share premium account 17 - 3,011,471 - 3,011,471Foreign currency translation account 18 (2,109) (7,391) - -Accumulated profits 6,633,302 4,123,530 1,904,889 1,204,402

Total attributable to equity holders of the Company 32,581,419 11,865,305 27,855,115 8,953,568Minority interests 1,246,522 - - -

Total equity 33,827,941 11,865,305 27,855,115 8,953,568

Balance Sheets As at 30 June 2006

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


Periodfrom 8.4.2004 Yearended to 30.6.2006 30.6.2005 Note $ $ Revenue 19 114,129,900 33,888,248 Cost of sales (102,515,557) (26,889,532)

Gross profit 11,614,343 6,998,716 Other income 20 618,156 8,711 Selling and distribution cost (508,184) (337,083) Administrative expenses (5,472,531) (2,317,715) Other expenses (744,965) (135,615) Finance costs 21 (2,357,214) (543,234) Exceptional item - Negative goodwill arising on consolidation of subsidiary recognised as income - 1,001,750 Share of profit of associated companies 1,302,050 -

Profit before income tax 22 4,451,655 4,675,530 Income tax 23 (680,846) (552,000)

Profit after income tax 3,770,809 4,123,530

Attributable to: Equity holders of the Company 3,646,811 4,123,530Minority interests 123,998 -

3,770,809 4,123,530

Earnings per share (cents) 24 - Basic 2.53 6.07

- Diluted 2.53 6.07

Consolidated Profit & Loss AccountFor the Financial Year ended 30 June 2006



Total Foreign attributable Share currency toequity Share premium translation Accumulated holdersof Minority Total capital account account profits theCompany interests equityGroup Note $ $ $ $ $ $ $ Balance at 1 July 2005 4,737,695 3,011,471 (7,391) 4,123,530 11,865,305 - 11,865,305 Issue of shares 16, 17 10,982,174 7,769,500 - - 18,751,674 - 18,751,674 Issue of bonus shares 16,17 2,842,597 (2,842,597) - - - - - Acquisition of subsidiaries - - - - - 428,088 428,088 Proceed from minority interests - - - - - 694,436 694,436 Share issue expenses 17 - (550,614) - - (550,614) - (550,614) Effect of Companies (Amendment) Act 2005 16,17 7,387,760 (7,387,760) - - - - - Net profit for the financial year - - - 3,646,811 3,646,811 123,998 3,770,809 Dividends 25 - - - (1,137,039) (1,137,039) - (1,137,039) Net exchange differences on translation of foreign entities financial statements - - 5,282 - 5,282 - 5,282

Balance at 30 June 2006 25,950,226 - (2,109) 6,633,302 32,581,419 1,246,522 33,827,941

Foreign Share currency Share premium translation Accumulated capital account account profits Total Note $ $ $ $ $ Balance as at date of Incorporation 2 - - - 2Issue of shares arising from acquisition of subsidiary 16 3,598,308 - - - 3,598,308 Issue of share in connection with the conversion of the convertible note 16,17 189,385 610,615 - - 800,000 Issue of shares in connection with the Company’s initial public offering 16,17 950,000 3,610,000 - - 4,560,000 Listing expenses 17 - (1,209,144) - - (1,209,144) Net profit for the financial period - - - 4,123,530 4,123,530 Net exchange differences on translation of foreign entities financial statements - - (7,391) - (7,391) Balance at 30 June 2005 4,737,695 3,011,471 (7,391) 4,123,530 11,865,305

Statements of Changes in EquityFor the Financial Year ended 30 June 2006



Share Share premium Accumulated capital account profits Total Note $ $ $ $Company Balance at 1 July 2005 4,737,695 3,011,471 1,204,402 8,953,568

Issue of shares 16 10,982,174 7,769,500 - 18,751,674

Issue of bonus shares 16,17 2,842,597 (2,842,597) - -

Share issue expenses 17 - (550,614) - (550,614)

Effect of Companies (Amendment) Act 2005 16,17 7,387,760 (7,387,760) - -

Net profit for the financial year - - 1,837,526 1,837,526

Dividends 25 - - (1,137,039) (1,137,039)

Balance at 30 June 2006 25,950,226 - 1,904,889 27,855,115

Balance as at date of Incorporation 2 - - 2

Issue of shares arising from acquisition of subsidiary 16 3,598,308 - - 3,598,308 Issue of share in connection with the conversion of the convertible note 16,17 189,385 610,615 - 800,000 Issue of shares in connection with the Company’s initial public offering 16,17 950,000 3,610,000 - 4,560,000 Listing expenses 17 - (1,209,144) - (1,209,144) Net profit for the financial period - - 1,204,402 1,204,402 Balance at 30 June 2005 4,737,695 3,011,471 1,204,402 8,953,568

Statements of Changes in EquityFor the Financial Year ended 30 June 2006



Periodfrom 8.4.2004 Yearended to 30.6.2006 30.6.2005 Note $ $ CashflowsfromoperatingactivitiesProfit before income tax 4,451,655 4,675,530Adjustments for: Allowance for doubtful trade receivables 10 - 32,703 Amortisation of intangible assets 4 13,704 - Currency translation (98,984) (7,391) Depreciation of property, plant and equipment 3 1,625,887 1,059,076 (Gain)/Loss on disposal of plant and equipment (10,409) 5,961 Interest expense 2,169,142 539,896 Interest income (6,794) - Negative goodwill arising on consolidation of subsidiary recognised as income - (1,001,750) Share of profit of associated companies (1,302,050) - Plant and equipment written off 108,852 - Provision of employee benefits 34,582 -

Operatingprofitbeforechangesinworkingcapital 6,985,585 5,304,025 Working capital changes: Inventories (881,309) (936,969) Trade and other receivables (4,150,951) (9,456,815) Trade and other payables (2,676,329) 726,602

Cashabsorbedbyoperations (723,004) (4,363,157)

Interest paid (2,169,142) (539,896) Interest received 6,794 - Income tax paid (269,586) -

Netcashusedinoperatingactivities (3,154,938) (4,903,053)

Cashflowsfrominvestingactivities Acquisition of subsidiary, net of cash of subsidiary acquired 5 (12,424,264) (1,054,673) Intangible assets 4 (157,395) - Deposit of investment - (1,399,990) Purchase of plant and equipment 3 (2,160,724) (2,277,012) Proceeds from sale of plant and equipment 32,763 1,500 Receipt of fixed deposit placements - 630,000

Netcashusedininvestingactivities (14,709,620) (4,100,175)

CashflowsfromfinancingactivitiesDividends 25 (1,137,039) -Minority interests 694,436 -Net proceeds from bank borrowing 26,343,915 6,954,673Payment to related party - (800,000)Net proceeds from issuance of share capital 8,166,385 7,749,166Repayment of finance lease liabilities (1,759,781) (997,201)

Netcashfromfinancingactivities 32,307,916 12,906,638

Net change in cash and bank balances 14,443,358 3,903,410Cash and bank balances at beginning of financial year/date of incorporation 3,903,410 -

Cash and bank balances at end of financial year/period (Note A) 18,346,768 3,903,410


Consolidated Cash Flow StatementFor the Financial Year ended 30 June 2006


Consolidated Cash Flow StatementFor the Financial Year ended 30 June 2006

Notetocashflowstatement

A.Cashandcashequivalents

Cash and cash equivalents comprised the following amounts:

Group Company 2006 2005 2006 2005 $ $ $ $

Cash and bank balances 18,349,150 3,903,410. 5,965,506 985,273Bank overdraft (Note 14) (2,382) - - -

18,346,768 3,903,410 5,965,506 985,273

Cash and bank balances are denominated in the following currencies:

Group Company 2006 2005 2006 2005 $ $ $ $

United States dollar 8,466,723 1,623,607 - -Thai baht 111,741 - - -Korean won 21,494 69,702 - -Hong Kong dollar 129,825 - - -Singapore dollar 9,619,367 2,210,101 5,965,506 985,273

18,349,150 3,903,410 5,965,506 985,273



These notes form an integral part of and should be read in conjunction with financial statements.

1. Generalcorporateinformation

The balance sheet and statement of changes in equity of Advance SCT Limited (the “Company”) and the consolidated financial statements of the Group for the financial year ended 30 June 2006 were authorised for issue in accordance with a resolution of the Directors dated 5 October 2006.

The Company is a public limited liability company, domiciled and incorporated in Singapore with its registered office and principal place of business at No. 6, Tuas View Circuit, Singapore 637599 and is publicly traded on the Singapore Exchange Securities Trading Limited. The Company’s registration number is 200404283C.

The principal activity of the Company is that of investment holding. The principal activities of the subsidiaries are set out in Note 5 to the financial statements.

2. Significantaccountingpolicies

(a) Basisofpreparationoffinancialstatements

The financial statements are prepared in accordance with Singapore Financial Reporting Standards (“FRS”) as required by the Singapore Companies Act, Cap 50 and are prepared under the historical cost convention, except as disclosed in the accounting policies below.

The preparation of financial statements in conformity with FRS requires management to exercise judgement in the process of applying the Group’s accounting policies and requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions, actual results may differ from those estimates.

Critical accounting estimates and assumptions used that are significant to the financial statements, and areas involving a higher degree of judgement of complexity, are disclosed in Note 2(u) to the financial statements.

During the financial year, the Group adopted all the new and revised FRSs and Interpretations of FRS (“INT FRS”) that are relevant to its operations and effective for the current financial year. The adoption of these new/revised FRS and INT FRS has no material effect on the financial statements.

FRSandINTFRSissuedbutnotyeteffective

The Group and the Company have not adopted the following FRS and INT FRS that have been issued but not yet effective:

Effectivedate(Annualperiods

beginningonorafter)

FRS 40 : Investment Property 1 January 2007FRS 106 : Exploration for and Evaluation of Mineral Resources 1 January 2006FRS 107 : Financial Instruments: Disclosures 1 January 2007INT FRS 104 : Determining whether an Arrangement Contains a Lease 1 January 2006INT FRS 105 : Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds 1 January 2006INT FRS 106 : Liabilities arising from Participating in a Specific 1 December 2005 Market - Waste Electrical and Electronic Equipment INT FRS 107 : Applying the Restatement Approach under FRS 29 Financial Reporting in Hyperinflationary Economies 1 March 2006INT FRS 108 : Scope of FRS 102 1 May 2006INT FRS 109 : Reassessment of Embedded Derivatives 1 June 2006

The Group and the Company expect that the adoption of the above pronouncements will have no material impact on the financial statements in the period of initial application.

Notes to the Financial Statements For the Financial Year ended 30 June 2006


2. Significantaccountingpolicies(Continued) (b) Basisofconsolidation

Subsidiary companies are entities over which the Group has power to govern the financial and operating policies, generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity.

The purchase method of accounting is used to account for the acquisition of subsidiary companies. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values on the date of acquisition, irrespective of the extent of any minority interest.

Subsidiaries are consolidated from the date on which control is transferred to the Group to the date on which that control ceases. In preparing the consolidated financial statements, inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Where necessary, adjustments are made to the financial statements of subsidiary companies to ensure consistency of accounting policies with those of the Group.

Any excess of the cost of business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities represents goodwill. The goodwill is accounted for in accordance with the accounting policy for goodwill stated in Note 2 (d) to the financial statements.

Any excess of the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of business combination is recognised in the consolidated profit and loss account of the Group on the date of acquisition.

Minority interest is that part of the net results of operations and of net assets of a subsidiary company attributable to interests which are not owned directly or indirectly by the Group. It is measured at the minorities’ share of the fair value of the subsidiary companies’ identifiable assets and liabilities at the date of acquisition by the Group and the minorities’ share of changes in equity since the date of acquisition, except when the losses applicable to the minority in a subsidiary company exceed the minority interest in the equity of that subsidiary company. In such cases, the excess and further losses applicable to the minority are attributed to the equity holders of the Company, unless the minority has a binding obligation to, and is able to, make good the losses. When that subsidiary company subsequently reports profits, the profits applicable to the minority are attributed to the equity holders of the Company until the minority’s share of losses previously absorbed by the equity holders of the Company has been recovered.

Minority interests are presented in the consolidated balance sheet of the Group within equity, separately from the Company’s equity holders, and are separately disclosed in the consolidated profit and loss account of the Group.

Investment in subsidiary companies is stated at cost on the Company’s balance sheet less impairment losses, if any.

(c) Property,plantandequipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any.

The cost of plant and equipment comprises its purchase price and any direct attributable costs of bringing the property, plant and equipment to working condition for its intended use. Expenditure for additions, improvements and renewals are capitalised, and expenditure for maintenance and repairs are charged to the profit and loss account.

On disposal of an item of property, plant and equipment, the difference between the net disposal proceeds and its carrying amount is taken to the profit and loss account. Any amount in the revaluation reserve relating to that asset is transferred to accumulated profits.



2. Significantaccountingpolicies(Continued) (c) Property,plantandequipment(Continued)

Depreciation is provided using the straight-line method so as to write off the cost of the property, plant and equipment over their estimated useful lives as follows:

Years Leasehold building Over remaining term of lease (Note 3) Plant and equipment 5 to 10 Furniture and fittings 10 Motor vehicles 5

No depreciation is provided on work-in-progress.

The residual values, useful life and depreciation method are reviewed at each balance sheet date to ensure that the residual values, period of depreciation and depreciation method are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the items of property, plant and equipment.

Fully depreciated property, plant and equipment are retained in the financial statements until such time when they are no longer in use.

(d) Intangibleassets

Goodwill

Goodwill is initially measured at cost being the excess of the cost of a business combination or cost of an acquisition of an associate over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities. Following initial recognition, goodwill is measured at cost less impairment in value, if any.

Goodwill acquired in a business combination is included in intangible assets. Goodwill on acquisition of an associate is included in investments in associates.

Gains and losses on the disposal of a business combination or an associate include the carrying amount of goodwill relating to the entity or business sold.

Membershiprights

The membership rights held on a long-term basis are stated at cost less impairment losses based on the review at balance sheet date, if any.

ComputerSoftwareandlicence

Computer software and licence are stated at cost less accumulated amortisation and impairment losses, if any.

Computer software and licence are amortised over three years. The amortisation period and method are reviewed at each balance sheet date.

(e) Jointventure

A joint venture company is a contractual agreement whereby the Group and other entities undertake an economic activity, which is subject to joint control.

Investment in joint venture company is stated at cost, less any impairment losses in the Company’s financial statements

The Group’s interests in the joint venture company are accounted for by the proportionate consolidation method whereby the Group’s proportionate share of the joint venture company’s assets, liabilities, income and expenses are combined on a line-by-line basis with similar items in the consolidated financial statements.



2. Significantaccountingpolicies(Continued)

(f) Associates

Associates are entities over which the Group has significant influence, but not control, generally accompanying a shareholding of between and including 20% and 50% of the voting rights. Investment in associates are accounted for in the consolidated financial statements of the Group using the equity method of accounting. Investment in associates in the consolidated balance sheet include goodwill identified on acquisition, where applicable.

Any excess of the Group’s share of the net fair value of the associate’s identifiable assets, liabilities and contingent liabilities over the cost of the investment is excluded from the carrying amount of the investment and is instead included as income in the determination of the Group’s share of the associate’s profit or loss in the financial year in which the investment is acquired.

Costs directly attributable to an acquisition are included as part of the cost of acquisition.

Equity accounting involves recording investments in associates on the consolidated balance sheet initially at cost, and recognising the Group’s share of its associates’ post-acquisition results and its share of post-acquisition movements in reserves against the carrying amount of the investments. The Group’s share of the profit or loss of its associates is recognised in the consolidated profit and loss account. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

The most recently available audited financial statements of the associates are used by the Group in applying the equity method.

In applying the equity method of accounting, unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Where necessary, adjustments are made to the financial statements of the associates to ensure consistency of accounting policies with those of the Group.

After application of the equity method of accounting, the Group determines whether it is necessary to recognise any impairment in value with respect to the Group’s net investment in associates. An associate is equity accounted for from the date the Group obtains significant influence until the date the Group ceases to have significant influence over the associate.

(g) Impairmentofassets The carrying amounts of the non-current assets are reviewed at each balance sheet date to determine whether there is any

indication of impairment and whenever events or changes in circumstances indicate that the impairment losses recognised in prior period may no longer exist or may have decreased. If any such indication exists, the asset’s recoverable amount is estimated.

An impairment loss is recognised whenever the carrying amount of the asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the profit and loss account. Unless it reverses a previous revaluation, credited to equity, in which case it is charged to equity.

The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. The net selling price is the amount obtainable from the sale of an asset in an arm’s length transaction. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Recoverable amounts are estimated for individual assets or if it is not possible, for the cash generating unit to which the asset belongs.

An impairment loss recognised in prior years is reversed when there is an indication that the impairment losses recognised for the asset no longer exists or has decreased. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss has been recognised. Reversals of impairment losses are recognised in the profit and loss account.




(h) Inventories

Inventories are stated at the lower of cost and net realisable value.

Cost is determined on a “first-in, first-out” basis and comprises all costs of purchase and other related charges incurred in bringing the inventories to their present location and condition.

Net realisable value is the estimated selling price at which the inventories can be realised in the normal course of business after allowing for obsolete, slow-moving and defective inventories.

(i) Financialassets

Financial assets of the Group within the scope of FRS 39 comprise of loans and receivables, which are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.

When financial assets are recognised initially, they are measured at fair value. The Group determines the classification of its financial assets after initial recognition and, where appropriate, re-evaluates the designation at each financial year end.

Loans and receivables of the Group are carried at amortised cost using the effective interest method. Gains or losses are recognised in the profit and loss account when the loans and receivables are derecognised or impaired as well as through the amortisation process.

Trade and other receivables

Trade and other receivables are classified and accounted for as loans and receivables under FRS 39.

An allowance for doubtful receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. The amount of the allowance is recognised in the profit and loss account.

Cash and cash equivalents

Cash and cash equivalents comprise of cash on hand and deposit with banks and financial institutions. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

(j) Financialliabilities

The accounting policies adopted for specific financial liabilities are set out below:

Trade and other payables

Trade and other payables are carried at cost which represents the fair value of the consideration to be paid in the future for goods and services received and subsequently measured at amortised cost using the effective interest method.

Gains and losses are recognised in the profit and loss account when the liabilities are derecognised as well as through the amortisation process.

Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is taken to the profit and loss account over the period of the borrowings using the effective interest method.

Gains or losses are recognised in the profit and loss account when the liabilities are derecognised as well as through the amortisation process.




(k) Provisions

Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material.

(l) Leases

When a group company is the lessee Finance leases

Leases in which the Group and the Company assume substantially the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the inception of the lease at the lower of the fair value of the leased asset and the present value of the minimum lease payments. Any initial direct costs are also added to the amount capitalised. Finance lease payments are apportioned between the finance charges and reduction of the finance lease liability so as to achieve a constant rate of interest on the remaining balance of liability. Finance charges are charged to the profit and loss account.

Capitalised leased asset are depreciated over the shorter of the estimated useful life of the asset and the lease term, if there is no reasonable certainty that the Group and the Company will obtain ownership by the end of the finance lease term.

Operating lease

Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are taken to the profit and loss account on a straight-line basis over the period of the lease.

When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place.

(m) Sharecapital

Ordinary share capital is recognised at the fair value of the consolidation reserve.

Incremental costs directly attributable to the issuance of new equity instruments are shown in the equity as a deduction from the proceeds.

(n) Revenuerecognition

Revenue represents invoiced value of goods sold less sales commission, material claims, discounts and returns.

Revenue from rendering of services is recognised when the service is rendered.

Revenue from sale of products is recognised upon passage of title to the customers, which generally coincides with their delivery and acceptance.

Commission, rental income and interest income are recognised on an accrual basis.

(o) Employeebenefits

Defined contribution plan

Contributions to defined contribution plans are recognised as an expense in the profit and loss account in the same financial year as the employment that gives rise to the contributions.

Employee leave entitlement

Employment entitlements to annual leave are recognised when they accrue to the employees. An accrual is made for estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date.




(p) Financecosts

Interest expenses and similar charges are expensed in the profit and loss account in the financial year in which they are incurred.

(q) Incometax

Income tax for the financial year comprises current and deferred taxes. Income tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity, in which case such income tax is recognised in equity.

Current tax is the expected tax payable on the taxable income for the financial year, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to income tax payable in respect of previous financial years.

Deferred tax is provided using the liability method, providing for temporary differences at the balance sheet date between the carrying amounts and tax bases of assets and liabilities in the financial statements. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using the tax rates enacted or substantially enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

(r) Foreigncurrencies The individual financial statements of each entity in the Group are presented in the currency of the primary economic environment

in which the entity operates (its functional currency).

The consolidated financial statements of the Group and the balance sheet and statement of changes in equity of the Company are presented in Singapore dollars, which is the functional currency of the Company and the presentation currency for the consolidated financial statements.

In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At each balance sheet date, monetary items denominated in foreign currencies are re-translated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are re-translated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated.

Exchange differences arising on the settlement of monetary items and on re-translating of monetary items are included in profit and loss account for the financial year. Exchange difference arising on the re-translation of non-monetary items carried at fair value are included in profit and loss account for the financial year except for differences arising on the re-translation of non-monetary items in respect of which gains and losses are recognised directly in equity. For such non-monetary items, any exchange component of that gain or loss is also recognised directly in equity.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations (including comparatives) are expressed in Singapore dollars using exchange rates prevailing on the balance sheet date. Income and expense items (including comparatives) are translated at the average exchange rates for the period, unless exchange rates fluctuated significantly during that financial year, in which case the exchange rates of the dates of the transactions are used. Exchange differences arising, if any, are classified as equity and transferred to the Group’s foreign currency translation account. Such translation differences are recognised in profit and loss account in the financial year in which the foreign operation is disposed of.

(s) Exceptionalitems

Exceptional items are items of income and expense of such size, nature or incidence that their disclosure is relevant to explain the performance of the Group for the financial year.




(t) Dividends

Equity dividends are recognised when they become legally payable. Interim dividends are recorded in the financial year in which they are declared payable. Final dividends are recorded in the financial year in which the dividends are approved by the shareholders. Dividends proposed or declared after the balance sheet dates are not recognised as a liability at the balance sheet date.

(u) Significantaccountingestimatesandjudgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Depreciation of property, plant and equipment

These assets are depreciated on a straight-line basis over their estimated useful lives. Management estimates the useful lives of these assets to be within 5 to 60 years. The carrying amounts of the Group’s property, plant and equipment as at 30 June 2006 were $23,980,141. Changes in the expected level of usage and technological developments could impact the economic useful lives and the residual values of these assets and therefore future depreciation charges could be revised.

Impairment of goodwill

The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the value in use of the cash-generating units to which the goodwill, licences and product development costs are allocated. Estimating the value in use requires the Group to make an estimate of the expected future cash flows from the cash-generating unit and also to choose a suitable discount rate in order to calculate the present value of those cash flows. The carrying amounts of the Group’s goodwill as at 30 June 2006 are $2,133,640. Details of the value in use calculations are provided in Note 4 to the financial statements.

Income taxes The Group recognised liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the

final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provision in the financial year in which such determination is made. The carrying amount of the Group’s current income tax payables as at 30 June 2006 was approximately $3,449,000 (2005: $1,030,000).

Judgement made by management in the application of FRS that has significant effect on the financial statements and in arriving

at estimates with a significant risk of material adjustment in the next financial year is discussed below.

Impairment of financial assets

The Group follows the guidance of FRS 39 on determining when a financial asset is other than temporarily impaired. This determination requires significant judgement, the Group evaluates, among other factors, the duration and extent to which a financial asset is less than its cost and the financial health of and near-term business outlook for the financial asset, including factors such as industry and sector performance, changes in technology and operational and financing cash flow.




(v) Segmentreporting

A segment is a distinguishable component of the Group’s business that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments.

Segment information is presented in respect of the Group’s business and geographical segments. The primary format, business segments, is based on the Group’s management and internal reporting structure.

Inter-segment pricing is determined on an arm’s length basis.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise income-earning assets and revenue, interest-bearing borrowings and expenses, and corporate asset and expenses.

Segment capital expenditure is the total cost incurred during the financial year to acquire segment assets that are expected to

be used for more than one financial year.

3. Property,plantandequipment

Leasehold Plantand Furniture Motor Work-in-Group building equipment andfittings vehicles progress Total $ $ $ $ $ $

CostBalance at 1 July 2005 - 10,888,885 775,872 839,518 - 12,504,275Arising from acquisition of subsidiaries 5,499,718 1,303,493 73,885 1,155,357 3,376,147 11,408,600Additions 32,750 2,579,866 637,348 302,191 1,395,114 4,947,269Disposals - - - (69,584) - (69,584)Written off - - (328,312) - - (328,312)Reclassified to intangible assets - - (12,118) - - (12,118)Currency realignment - 98,302 3,460 6,222 - 107,984

Balance at 30 June 2006 5,532,468 14,870,546 1,150,135 2,233,704 4,771,261 28,558,114

Accumulateddepreciation Balance at 1 July 2005 - 2,644,436 403,080 169,359 - 3,216,875Depreciation charged for the financial year 36,426 1,204,888 155,963 228,610 - 1,625,887Disposals - - - (47,230) - (47,230)Written off - - (219,460) - - (219,460)Reclassified to intangible assets - - (2,460) - - (2,460)Currency realignment - 3,876 328 157 - 4,361

Balance at 30 June 2006 36,426 3,853,200 337,451 350,896 - 4,577,973

Netbookvalue Balance at 30 June 2006 5,496,042 11,017,346 812,684 1,882,808 4,771,261 23,980,141



3. Property,plantandequipment(Continued)

Plantand Furniture MotorGroup equipment andfittings vehicles Total $ $ $ $

Cost Balance at date of incorporation - - - -Arising from acquisition of subsidiary 4,747,319 525,772 224,000 5,497,091Additions 6,153,346 250,100 615,518 7,018,964Disposals (11,780) - - (11,780)

Balance at 30 June 2005 10,888,885 775,872 839,518 12,504,275

Accumulateddepreciation Balance at date of incorporation - - - -Arising from acquisition of subsidiary 1,848,389 278,496 35,233 2,162,118Depreciation charged for the financial period 800,366 124,584 134,126 1,059,076Disposals (4,319) - - (4,319)

Balance at 30 June 2005 2,644,436 403,080 169,359 3,216,875

Netbookvalue Balance at 30 June 2005 8,244,449 372,792 670,159 9,287,400

During the financial year, the Group acquired plant and equipment with an aggregate cost of $4,947,269 (2005: $7,018,964) of

which $2,786,545 (2005: $4,741,952) was acquired by means of finance lease and bank loan. Cash payments of $2,160,724 (2005: $2,277,012) were made to purchase the plant and equipment.

As at the balance sheet date, the Group had plant and equipment and motor vehicles purchased under finance lease contracts with net book value of $6,410,852 (2005: $6,283,546) and $1,462,435 (2005: $653,201) respectively.

In addition, the Group’s motor vehicles with a net book value as at balance sheet date of $417,632 (2005: $622,726) are registered in the names of certain Directors of the Company and employees of the subsidiary who are holding the motor vehicles in trust for the Group.

Work-in-progress with net book value of $4,771,261 relates to construction of a new building at Kranji Crescent. The leasehold building and work-in-progress of the Group have been pledged to secure banking facilities granted to the Group.

Group’smajorproperties

Location Tenure Ownedby Usage 6 Tuas View Circuit 60 years leasehold Tsing Yi Warehouse and officeSingapore 637599 commencing 1.11.1998 Enterprises Pte Ltd

22 Sungei Kadut Street 3 16 years leasehold Tsing Yi Warehouse and officeSingapore 729151 commencing 18.1.1996 Enterprises Pte Ltd



4. Intangibleassets Group Company 2006 2005 2006 2005 $ $ $ $

Goodwill 2,133,640 - - -Computer software and licence 104,345 - - -Club membership 50,000 - 50,000 -

2,287,985 - 50,000 -

Goodwill

Goodwill acquired in a business combination is allocated, at acquisition, to the cash-generating units (CGUs) that are expected to benefit from that business combination. Before recognition of impairment losses, the carrying amount of goodwill had been allocated to the following single CGUs:

Group 2006 2005 $ $ Green World Holdings Limited 2,133,640 -

The recoverable amount is determined based on value-in-use calculations. These calculations use cash flow projections based on financial budgets approved by management covering a five-year period. The key assumptions for the value-in-use calculations are those regarding the discount rate and expected changes to selling prices and direct costs during the period based on past performance and its expectations for market development.

Group 2006 2005 $ $ Computersoftwareandlicence

Cost

Balance at beginning of financial year/period - -Reclassified from property, plant and equipment 12,118 -Addition 107,395 -Currency realignment 1,094 -

Balance at end of financial year/period 120,607 -

AccumulatedamortisationBalance at beginning of financial year/period - -Reclassified from property, plant and equipment 2,460 -Amortisation 13,704 -Currency realignment 98 -


Netbookvalue Balance at end of financial year/period 104,345 -

GroupandCompany 2006 2005 $ $ Clubmembership

At cost 50,000 -

The transferable club membership is registered in the name of a Director of the Company who is holding the membership in trust for the Group and the Company.



5. Investmentinsubsidiaries Company 2006 2005 $ $

Unquoted equity shares, at cost 34,697,206 3,598,308Due from subsidiary - 3,095,673

34,697,206 6,693,981

In the previous financial period, the amount due from subsidiary was non-trade in nature, unsecured, interest-free and was not expected to be repaid within twelve months from the balance sheet date.

Details of subsidiaries are as follows:

Nameofcompany (Countryofincorporation) Principalactivities Effectiveinterestheld 2006 2005 % %Held by the Company SCT Technologies Pte Ltd * Provision of Printed Circuit Board (PCB) testing and finishing 100 100(Singapore) services, distribution of value-added PCB-related materials and equipment, and rental of PCB-related equipment SCT Technologies (HK) Limited Dormant 100 100(Hong Kong)

SCT Innodea Co. Ltd ^ Provision of PCB-related testing and finishing services, 51 50(South Korea) manufacture and sales of PCB manufacturing equipment and lease or sub-lease of PCB-related equipment Green World Holdings Limited # Investment holding 98.5 -(Singapore)

SCT Technologies (Kunshan) Ltd @ Dormant 100 -(People’s Republic of China)

SCT Technologies (Thailand) Dormant 80 -Co. Ltd @ (Thailand) SCT Western (S) Pte Ltd * Investment holding 60 -(Singapore)

Held by Green World Holdings Limited Tsing Yi Enterprises Pte Ltd # Dealer in all kinds of ferrous and non- ferrous metals, 98.5 -(Singapore) electrical and electronics and insulated cable scraps Seah Metal Industries Pte Ltd # Dealer in all kinds of ferrous and non- ferrous metals, 98.5 -(Singapore) electrical and electronics and insulated cable scraps Tsingtech Recycling Pte Ltd # Dealer in all kinds of ferrous and non- ferrous metals, 98.5 -(Singapore) electrical and electronics and insulated cable scraps Temasek Dynamic Sdn Bhd ## Investment holding 98.5 -(Malaysia)

* Audited by BDO Raffles@ Newly incorporated in 2006^ Audited by BDO Daejoo Accounting Corporation, a member firm of BDO International# Audited by Ernst & Young (Singapore)## Audited by Ernst & Young (Malaysia)



5. Investmentinsubsidiaries(Continued)

Acquisitions

On 26 September 2005, the Company acquired a 28.8% equity interest in Green World Holdings Limited (“Green World”) for a cash consideration of $9,139,104. The Group had accounted for its share of profits in Green World from 26 September 2005 to 31 May 2006 amounting to $1,214,340 using equity method of accounting.

In June 2006, the Company acquired an additional 69.7% equity interest in Green World for a consideration of $20,473,735, making it a subsidiary of the Company. The consideration was satisfied by the issuance of 40,131,527 ordinary shares of the Company at fair value of $10,034,674, cash payment of $10,437,277 and deferred consideration of $1,784 which was settled by the issuance of 6,760 ordinary shares of the Company after the balance sheet date.

In the one month to 30 June 2006, Green World contributed a net profit of $474,919 to the consolidated net profit for the financial year. If the acquisition had occurred on 1 July 2005, the Group’s revenue and net profit would have been $421,839,175 and $9,715,706 respectively.

Fair values of the identifiable net assets acquired: Carrying Fairvalue Carrying Fairvalue amount recognised amount recognised before on before on combinations acquisitions combinations acquisitions 2006 2006 2005 2005 $ $ $ $ Property, plant and equipment 12,645,600 11,408,600 3,334,973 3,334,973Financial instrument 11,001 11,001 - -Inventories 9,169,609 9,169,609 663,352 663,352Trade and other receivables 43,116,608 43,116,608 4,955,586 4,955,586Fixed deposits - - 630,000 630,000Cash and bank balances 7,152,117 7,152,117 2,543,635 2,543,635Trade and other payables (5,298,486) (5,298,486) (3,116,527) (3,116,527)Bank borrowings (32,898,481) (32,898,481) (2,444,877) (2,444,877)Finance lease payables (953,336) (953,336) (1,202,223) (1,202,223)Current income tax payable (2,097,005) (2,097,005) (606,261) (606,261)Deferred tax liabilities (489,000) (489,000) (157,600) (157,600)

Net identifiable assets acquired 30,358,627 29,121,627 4,600,058 4,600,058

Minority interest’s share (428,088) -Goodwill / (negative goodwill) arising on acquisitions 2,133,640 (1,001,750)

Total purchase consideration 30,827,179 3,598,308

Costoftheacquisitions 2006 2005 $ $Ordinary shares issued, at fair value 10,034,674 -Share of profits accounted for under equity accounting 1,214,340 -Deferred consideration 1,784 -Cash consideration 19,576,381 3,598,308

Total cost of acquisitions 30,827,179 3,598,308

Effectoncashflowsonacquisitions Cash paid 19,576,381 3,598,308Net cash in the subsidiaries acquired (7,152,117) (2,543,635)

Net cash outflow on acquisitions 12,424,264 1,054,673



6. Investmentinjointventure Company 2006 2005 $ $

Unquoted equity shares, at cost - 301,151

Details of the joint venture are as follows:

Nameofcompany (Countryofincorporation) Principalactivities Effectiveinterestheld 2006 2005 % % SCT Innodea Co. Ltd Provision of PCB-related testing and finishing services, 51% 50%(South Korea) manufacture and sales of PCB manufacturing equipment and lease or sub-lease of PCB-related equipment

During the financial year, the Company increased its interest in joint venture company to 51% and accordingly the joint venture company became a subsidiary of the Company.

The summarised financial information of the joint venture company is as follows: Group 2006 2005 $ $

Assets - 583,401Liabilities - 18,813Net loss - 22,933

7. Investmentinassociate Group Company 2006 2005 2006 2005 $ $ $ $

Unquoted equity shares, at cost 1,345,092 -

Balance at beginning of financial year - - Addition 1,345,092 - Share of post acquisition profits 87,710 -

Balance at end of financial year 1,432,802 -

Details of the associate are as follows:

Nameofcompany (Countryofincorporation) Principalactivities Effectiveinterestheld 2006 2005 % % SCT Western (Taiwan) Pte Ltd Retailer and wholesaler of copper ball 49 -(Taiwan)

The associate is not considered significant associate as defined under Rule 718 of the Listing Manual of the Singapore Exchange Securities Trading Limited.



7. Investmentinassociate(Continued)

The summarised financial information of the associate is as follows: Group 2006 2005 $ $

Assets 23,577,808 -Liabilities 21,455,521 -Revenue 5,614,934 -

Net profit offer income tax 179,000 -

8. Deferredtaxassets/(liabilities) Group 2006 2005 Deferredtaxassets $ $

Balance at beginning of financial year/period - -Transfer from profit and loss account 42,583 -Currency realignment 433 -


Attributable to:Provisions 2,762 -Investment allowance 40,254 -

43,016 -

Deferredtaxliabilities

Balance at beginning of financial year/period (286,200) -Arising on acquisition of a subsidiary (489,000) (157,600)Transfer from profit and loss account (131,420) (128,600)

Balance at end of financial year/period (906,620) (286,200)

Deferred tax liabilities arise as a result of the temporary differences between the carrying amounts and tax bases of property, plant and equipment.

The deferred tax assets and liabilities are not offsetted as there is no legally enforceable right to offset the deferred tax assets and liabilities arising from different tax jurisdictions.

9. Inventories Group 2006 2005 $ $

Goods for re-sale, at cost 11,651,239 1,600,321



10. Tradeandotherreceivables Group Company 2006 2005 2006 2005 $ $ $ $

Trade receivables - third parties 44,767,102 14,129,260 - 9,368- associate 3,959,051 - - -Less: Allowance for doubtful trade receivables (164,192) (47,755) - -

48,561,961 14,081,505 - 9,368Other receivables - third parties 10,769,694 68,379 749,791 -- minority interest 284,000 - - -- subsidiaries - - 999,140 -Deposits 1,295,374 158,855 - -Dividend receivable - - 3,000,000 -Prepayments 792,469 70,959 - -

61,703,498 14,379,698 4,748,931 9,368

Other receivables are unsecured, interest-free and repayable on demand.

Movements in allowance for doubtful trade receivables are as follows: Group 2006 2005 $ $

Balance at beginning of financial year/period 47,755 -Acquisition of subsidiaries 119,273 15,052Allowances (written back) / made for the financial year/period (2,836) 32,703

Balance at end of financial year/period 164,192 47,755

Trade and other receivables are denominated in the following currencies:

Group Company 2006 2005 2006 2005 $ $ $ $

United States dollar 27,715,743 12,074,996 - -New Taiwan dollar 321,549 275,169 - -Chinese renminbi 694,826 - - -Korean won 677,157 - - -Singapore dollar 32,294,223 2,029,533 4,748,931 9,368

61,703,498 14,379,698 4,748,931 9,368

11. Depositforinvestment This is in relation to the acquisition of the associate, SCT Western (Taiwan) Pte Ltd.



12. Interestrateswap Group As at balance sheet date, the Group entered into contractual or underlying principal amounts of $1,500,000 of interest rate swap for

hedging purposes and year-end positive fair value as at 30 June 2006 is $9,659 (2005: Nil).

13. Tradeandotherpayables Group Company 2006 2005 2006 2005 $ $ $ $

Trade payables - third parties 1,257,873 2,314,072 - 14,269Other payables - third parties 1,770,839 21,520 33,771 -- subsidiary - - 388,851 -Accrued operating expenses 2,545,573 707,537 695,459 421,926Deposit received 92,785 - - -

5,667,070 3,043,129 1,118,081 436,195

Other payables are unsecured, interest-free and repayable on demand.

Trade and other payables are denominated in the following currencies:

Group Company 2006 2005 2006 2005 $ $ $ $

United States dollar 1,299,964 971,536 - -New Taiwan dollar 3,114 115,157 - -Chinese renminbi 130,493 - - -Hong Kong dollar - 302,242 - -Japanese yen - 6,862 - -Korean won 439,649 - - -Singapore dollar 3,793,850 1,647,332 1,118,081 436,195

5,667,070 3,043,129 1,118,081 436,195



14. Interest-bearingliabilities Group Company 2006 2005 2006 2005 $ $ $ $

Currentliabilities Bank overdraft 2,382 - - -Banker’s acceptances 3,222,462 671,335 - -Bank loan 1 5,708,539 - 5,708,539 -Bank loan 2 2,272,730 - 2,272,730 -Bank loan 3 1,500,000 - - -Bridging loan 11,628 34,238 - -Finance lease payables 1,933,767 1,277,980 - -Short-term trade loans 11,371,598 3,505,920 - -Trust receipts 33,030,990 5,176,224 - -

59,054,096 10,665,697 7,981,269 -

Non-current liabilities Bank loan 1 4,125,000 - 4,125,000 -Bank loan 2 2,727,270 - 2,727,270 -Construction loan 2,188,160 - - -Bridging loan - 11,833 - -Convertible loan 3,000,000 - 3,000,000 -Finance lease payables 4,476,876 3,668,994 - -

16,517,306 3,680,827 9,852,270 -

75,571,402 14,346,524 17,833,539 -

(a) The bank overdraft, banker’s acceptances, trust receipts and short-term trade loans are supported by corporate guarantees

given by the Company and its subsidiaries. Effective interest rate on bank overdraft, banker’s acceptances, trust receipts and short-term trade loans during the financial year ranged from 4.55% to 7.29% (2005: 3.1% to 5.6%) per annum.

(b) Bridging loan bears interest at 5.0% (2005: 5.0%) per annum and repayable in 36 monthly instalments.

(c) Bank loan 1 is secured by a charge over 8,897,000 shares in Green World Holdings Limited. It is repayable in 8 quarterly instalments and bears interest at 1.75% (2005: Nil) over the bank’s cost of fund.

(d) Bank loan 2 is secured by a charge over 12,820,513 shares in Green World Holdings Limited and corporate guarantee by the Company. The loan bears interest at 2.25% to 2.5% (2005: Nil) over the prevailing swap rate and is repayable in 22 monthly instalments commencing from 25 August 2006.

(e) Bank loan 3 is secured by a legal mortgage over a subsidiary company’s leasehold building. The loan is repayable in 3 equal quarterly instalments and bears interest at 2.25% (2005: Nil) over the prevailing swap rate.

The Group hedges its interest rate risks in relation to bank loan 3 with an interest rate swap at 2.35% (2005: Nil) (f) Construction loan is to be converted to 4-year term loan upon obtaining Temporary Occupation Permit or 30 September 2006

whichever is earlier.



14. Interest-bearingliabilities(Continued)

It is the Group policy to lease certain of its plant and machinery under finance leases. As at balance sheet date, the Group had obligations under finance leases that are repayable as follows:

Group 2006 2005 $ $

Minimum lease instalments payable - within one financial financial year 2,353,800 1,471,460- after one financial year but within five financial years 4,560,128 3,854,460- after five financial years 49,971 115,517

6,963,899 5,441,437Finance charges allocated to future periods (553,256) (494,463)

6,410,643 4,946,974

Disclosed in the balance sheet as follows: Current liabilities 1,933,767 1,277,980Non-current liabilities 4,476,876 3,668,994

6,410,643 4,946,974

The lease term ranges from 3 to 7 years (2005: 3 to 7 years). The average effective borrowing rate ranges between 1.786% and 6.48% (2005: 3% to 6.25%) per annum.

The minimum lease payment payable at balance sheet date as shown above do not differ significantly from their present value.

Convertibleloan

The convertible loan notes were issued on 21 September 2005. The notes are convertible into ordinary shares of the Company at any time between the date of utilisation of the loan and the settlement date. On issue, the loan notes were convertible at $0.49 per share, subject to adjustment, in integral multiples of $1,000,000 notes. Convertible loan bears interest at 15% (2005: Nil) per annum.

Unless previously converted, the notes are redeemable at their principal amounts together with the interest on the second anniversary of the utilisation date.

Interest-bearing liabilities are denominated in the following currencies: Group Company 2006 2005 2006 2005 $ $ $ $

United States dollar 42,325,050 9,353,479 - -Korean won 150,837 - - -Singapore dollar 33,095,515 4,993,045 17,833,539 - 75,571,402 14,346,524 17,833,539 -



15. Provisionforemployeebenefits

Movements in provision for employee benefits are as follow: Group 2006 2005 $ $

Balance at beginning of financial year - -Provision made during the financial year 34,582 -Currency realignment 353 -Balance at end of financial year 34,935 -

16. Sharecapital Groupandcompany 2006 2005 $ $

Issuedandfully-paid: 94,753,900 (2005: 2) ordinary shares of $0.05 (2005: $1.00) each at beginning of financial year/date of incorporation 4,737,695 2

Issue of 3,598,308 ordinary shares of $1.00 each as consideration for the acquisition of subsidiary, pursuant to the restructuring exercise in preparation

for the Company’s initial public offering - 3,598,308

Issue of 189,385 ordinary shares of $1.00 each, pursuant to the conversion of the convertible notes of $800,000 - 189,385

Sub-division of the ordinary shares of $1.00 each into 75,753,900 ordinary shares of $0.05 each - -

Issue of 19,000,000 ordinary shares of $0.05 each pursuant to the Company’s initial public offering - 950,000

Issue of 18,950,000 ordinary shares of $0.05 each for cash by private placement 947,500 -

Issue of 56,851,949 ordinary shares of $0.05 each on the basis of one bonus share for every two existing ordinary shares 2,842,597 -

Issue of 40,138,781 ordinary shares as consideration for the acquisition of a subsidiary 10,034,674 -

Effect of Companies (Amendment) Act 2005 (see note (a)) 7,387,760 -

210,694,630 ordinary shares (2005: 94,753,900 ordinary shares of $0.05 each) at end of financial year/period 25,950,226 4,737,695

The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restriction.

(a) The Companies (Amendment) Act 2005 came into effect on 30 January 2006. Among other things, the Companies Act, Cap. 50 was amended to abolish the concepts of par value, authorised share capital and share premium. As a result, the balance of the share premium account amounting to $7,387,760 became part of the share capital account as of that date.

From 30 January 2006, share capital does not have a par value and there is no authorised share capital.



17. Sharepremiumaccount Groupandcompany 2006 2005 $ $

Balance as at beginning of financial year/date of incorporation 3,011,471 -

Issue of 189,385 ordinary shares of $1.00 each at $4.2242 per share for cash, pursuant to the conversion of the convertible notes of $800,000 - 610,615

Issue of 19,000,000 ordinary shares of $0.05 each at $0.24 per share for cash, pursuant to the company initial public offering - 3,610,000

Listing expenses - (1,209,144)

Issue of 18,950,000 ordinary shares of $0.05 each at $0.46 per share for cash by private placement 7,769,500 -

Issue of 56,851,949 ordinary shares of $0.05 each on the basis of one bonus share for every two existing ordinary shares (2,842,597) -

Share issue expenses (550,614) -

Effect of Companies (Amendment) Act 2005 (see note 16(a)) (7,387,760) -

Balance at end of financial year/period - 3,011,471

18. Foreigncurrencytranslationaccount Group 2006 2005 $ $

Balance at beginning of financial year/period (7,391) -

Net currency translation adjustment 5,282 (7,391)

Balance at end of financial year/period (2,109) (7,391)

The foreign currency translation account comprises all foreign exchange differences arising from the translation of the financial statements of foreign joint venture company and foreign subsidiaries whose functional currencies are different from the presentation currency of the Company. The balance is non-distributable.

19. Revenue Group Periodfrom 8.4.2004 Yearended to 30.6.2006 30.6.2005 $ $

Sale of goods 103,210,340 25,697,889Services rendered 9,829,575 7,496,159Rental income 1,089,985 694,200

114,129,900 33,888,248



20. Otherincome Group Periodfrom 8.4.2004 Yearended to 30.6.2006 30.6.2005 $ $

Consultancy fee 517,298 -Gain on disposal of property, plant and equipment 10,409 -Interest income 6,794 4,646Miscellaneous income 83,655 4,065

618,156 8,711

21. Financecosts Group Periodfrom 8.4.2004 Yearended to 30.6.2006 30.6.2005 $ $

Bank charges 188,072 113,581Factoring charges - 31,892Interest expense - bank overdraft 982 54- bank loan 1,060,062 -- factored receivables 6,959 47,401- finance lease 307,043 110,186- short-term trade loans 794,096 240,120

2,357,214 543,234

22. Profitbeforeincometax This is arrived at after charging: Group Periodfrom 8.4.2004 Yearended to 30.6.2006 30.6.2005 $ $

Amortisation of intangible assets 13,704 -Depreciation of property, plant and equipment 1,625,887 1,059,076Cost of inventories included in cost of sales 75,477,808 23,737,284Non-audit fees paid to - auditors of the Company 46,800 -- other auditors 1,333 -Foreign exchange loss 230,875 102,912Loss on disposal of property, plant and equipment - 5,961Property, plant and equipment written off 108,852 -Operating lease expenses 246,820 176,439Director’s fees 88,500 47,250Staff costs*- Salaries, bonuses and other benefits 3,800,994 2,313,090

- Contribution to defined contribution plan 299,178 126,677

* - Included in the staff costs is Directors’ remuneration of $1,342,814 (2005: $746,985)



23. Incometax Group Periodfrom 8.4.2004 Yearended to 30.6.2006 30.6.2005 $ $

Current income tax - current financial year/period 667,553 346,400- under provision in respect of prior year 9,812 -

677,365 346,400Deferred tax - current financial year/period 65,025 205,600- over provision in respect of prior year (61,544) -

3,481 205,600

Total income tax expense in profit and loss account 680,846 552,000

Reconciliationofeffectivetaxrate Group Periodfrom 8.4.2004 Yearended to 30.6.2006 30.6.2005 $ $

Profit before income tax 4,451,655 4,675,530 Income tax at tax rate of 20% 854,532 935,106Income tax at concessionery tax rate of 10% 17,898 -Effect of different tax rate in other countries (14,735) -Effect of share of results of associates (260,410) -Expenses not deductible for tax purposes 127,437 29,077Income not subject to tax (38,469) (200,350)Investment allowance (139,942) (102,433)Tax exemption (32,703) (10,500)Under provision of current tax in prior year 9,812 -Over provision of deferred tax in prior year (61,544) -Deferred tax assets not recognised in profit and loss account 228,635 -Others (9,665) (98,900) 680,846 552,000

At balance sheet date, the Group had unutilised tax losses of $1,143,000 (2005: $Nil) which are available for carry forward and set-off against future taxable profit, subject to agreement by the relevant tax authorities.

The related deferred tax assets of approximately $228,000 (2005 : $Nil) have not been recognised in the financial statements as there is no reasonable certainty of their recovery in the future period.



24. Earningspershare

Basic and diluted earnings per share is calculated by dividing the Group’s profit attributable to shareholders by the weighted average number of shares in issue during the financial year.

Group Periodfrom 8.4.2004 Yearended to 30.6.2006 30.6.2005 $ $

Earnings per share - Basic 2.53 cents 6.07 cents

- Diluted 2.53 cents 6.07 cents

Earnings Earnings for the purposes of a basic and diluted earnings per share (profit attributable to equity holders of the Company) 3,646,811 4,123,530

Number of shares Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share 143,927,602 67,898,768

The effect of potential ordinary shares arising from the convertible loan notes is not included in the calculation of diluted earnings per share because they are antidilutive for the financial year presented.

25.Dividends GroupandCompany Periodfrom 8.4.2004 Yearended to 30.6.2006 30.6.2005 $ $

First and final tax exempt (one-tier) dividend paid of $0.01 (2005: $Nil) per share in respect of the financial period ended 30 June 2005 1,137,039 -

The Directors of the Company recommend that a first and final tax exempt (one-tier) dividend of $0.007 (2005: $0.01) per share, amounting to approximately $1,500,000 to be paid in respect of the financial year just ended. The dividend has not been recognised as a liability as at balance sheet date as it is subject to shareholders’ approval at the Annual General Meeting of the Company.



26. Significantrelatedpartytransactions

An entity or individual is considered a related party of the Group for the purposes of the financial statements if:

(i) it possesses the ability (directly or indirectly) to control or exercise significant influence over the operating and financial decisions of the Group or vice versa; or

(ii) it is subject to common control or common significant influence.

In addition to the related party information disclosed elsewhere in the financial statements, the following were significant related party transactions during the financial year between the Company and its related party at rates agreed between the parties:

GroupandCompany Periodfrom 8.4.2004 Yearended to 30.6.2006 30.6.2005 $ $

Sales to an associate 1,771,162 -

Compensationofdirectorsandkeymanagementpersonnel Short-term benefit 1,584,120 788,925Post-employment benefits 61,985 47,290

1,646,105 836,215

27.Operatingleasecommitments

(a) Operatingleasecommitments–wheretheGroupisthelessee

As at balance sheet date, the future aggregate minimum lease payments under non-cancellable operating leases contracted for at the reporting date but not recognised as liabilities are as follows:

Group 2006 2005 $ $

Payable within one financial year 654,676 164,932Payable after one financial year but within five financial years 1,984,818 139,119Payable after five financial years 7,556,796 -

10,196,290 304,051

(b) Operatingleasecommitments–wheretheGroupisthelessor

As at balance sheet date, the future aggregate minimum lease receipts for plant and machinery under non-cancellable operating leases contracted for at the reporting date but not recognised as receivables are as follows:

Group 2006 2005 $ $

Receivable within one financial year - 51,646



28. Capitalcommitments Group 2006 2005 $ $

Investment in subsidiary 501,000 5,202,000Investment in associate - 9,139,000Property, plant and equipment 2,480,000 -

2,981,000 124,341,000

29. Segmentinformation

(a) Businesssegments

The Group operates in the following major business activity segments – testing and finishing services and recycling and supply chain management. The dominant source and nature of the Group’s risks and returns are based on the business activity segments.

Segment revenue and expenses are directly attributable to the segments.

Testingand Recyclingand finishing supplychain services management Others Total $ $ $ $2006

REVENUE 10,919,560 103,210,340 - 114,129,900

RESULTSSegmental results 5,417,156 6,197,187 - 11,614,343

Other income 618,156Selling and distribution costs (508,184)Administrative expenses (5,472,531)Other expenses (744,965)Finance costs (2,357,214)Share of profit of associated companies 1,302,050

Profit before income tax 4,451,655Income tax (680,846)

Profit after income tax 3,770,809

ASSETSSegment assets 22,222,289 88,994,084 6,765,299 117,981,672

Investment in associate - 1,432,802 - 1,432,802

119,414,474

LIABILITIESSegment liabilities 7,300,437 55,410,201 18,562,769 81,273,407

OTHERINFORMATION Segment depreciation 1,528,739 97,148 - 1,625,887



29. Segmentinformation (Continued)

(a) Businesssegments (Continued) Testingand Supply finishing Chain services Management Others Total $ $ $ $2005REVENUE 8,190,359 25,697,889 - 33,888,248

RESULTS Segmental results 4,671,331 2,327,385 - 6,998,716

Other income 8,711Selling and distribution costs (337,083)Administrative expenses (2,317,715)Other expenses (135,615)

Finance costs (543,234)Exceptional item - Negative goodwill arising on consolidation of subsidiary recognised as income 1,001,750

Profit before income tax 4,675,530Income tax (552,000)

Profit after income tax 4,123,530 ASSETS Segment assets 28,118,909 - 2,394,631 30,513,540 LIABILITIES Segment liabilities 18,210,042 - 436,195 18,646,237 OTHERINFORMATIONSegment depreciation 1,059,076 - - 1,059,076

With the acquisition of the subsidiaries, the Group’s business segments have been changed to testing and finishing services and recycling and supply chain management. Accordingly, the comparative figures have been reclassified to conform with current year’s classification.



29. Segmentinformation (Continued)

(b) Geographicalsegments

Singapore is the home country of the Group and most of the assets of the Group are located in Singapore. The Group’s geographical segmentation of sales is based on the country in which the customers are headquartered. The Group’s revenue are generated from the following geographical locations :

Group Periodfrom 8.4.2004 Yearended to 30.6.2006 30.6.2005 $ $

Singapore 15,940,763 13,498,161People’s Republic of China 41,897,636 13,785,075Taiwan 38,854,266 4,749,147Malaysia 2,107,126 1,072,366Hong Kong - 751,503Japan 6,858,618 -Korea 3,430,986 -Others 5,040,505 31,996

114,129,900 33,888,248

The Group has not segmented the profit before income tax by geographical regions as the allocation of costs cannot be done in a uniform manner with reasonable accuracy. This is because the Group’s operating expenses incurred for the provision of testing and finishing services and distribution of value-added materials and equipment such as marketing expenses, technical and engineering personnel expenses and facilities related cost are general costs which are accounted for on a Group basis. Since the Group’s accounting system does not track our operating expenses by segments, the Group is therefore not able to segment the profit before income tax in a meaningful manner.



30. Financialriskmanagement The Group is exposed to financial risk arising from the normal course of business. The Group does not hold or issue derivative

financial instruments for trading purposes or to hedge against fluctuation, if any, in interest rates and foreign exchange rates.

(a) Creditrisk

Credit risk is the potential financial loss resulting from the failure of a customer or counterparty to settle its financial and contractual obligations to the Group, as and when they fall due.

The Group has established credit limits for customers and monitors their balances. Cash and fixed deposits are placed with banks and financial institutions.

At the balance sheet date, there is no significant concentration of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.

(b) Foreigncurrencyrisk

The Group incurs foreign currency risk on transactions and balances that are denominated in a currency other than Singapore dollars. The currencies giving rise to this risk are primarily United States dollars and New Taiwan dollars. Exposure to foreign currency risk is monitored on an ongoing basis to ensure that the net exposure is at an acceptable level.

(c) Liquidityrisk

The Group actively manages their operating cash flows and the availability of funding so as to ensure that all repayment and funding needs are met. As part of their overall prudent liquidity management, the Group maintains sufficient levels of cash to meet their working capital requirements. Short term funding is obtained from overdraft and trade financing facilities obtained from banks and finance leases from financial institutions.

(d) Interestraterisk

The Group’s exposure to changes in interest rate relates primarily to interest-earning financial assets and interest-bearing financial liabilities. Interest rate risk is managed by the Group on an on-going basis with the primary objective of limiting the extent to which net interest expense could be affected by an adverse movement in interest rates. The Group hedges its interest risk by using interest rate swaps.

(e) Fairvalues

The carrying amounts of the financial assets and financial liabilities in the financial statements approximate their fair values.



31. Eventssubsequenttothebalancesheetdate

Subsequent to the balance sheet date, the following events have taken place:

(a) JointventurebetweentheCompanyandASTIHoldingsLimited(“ASTI”)

On 24 July 2006, the Company signed a Joint Venture agreement with ASTI to establish A-SCT Semicon Recycling Industries Pte Ltd to provide metal and other material recovery and recycling capabilities to ASTI and its customer base in Asia. The Company will owns 51% of the company.

(b)Establishmentofsubsidiarycompany–SingaporeCopperTechnologiesPteLtd

On 11 August 2006, the Company established a wholly-owned subsidiary, Singapore Copper Technologies Pte Ltd, a company incorporated in Singapore. The principal activities of the subsidiary are copper refining and manufacturing.

(c) AcquisitionofC.N.A.VentureHoldingsSdn.Bhd. (“CNAVenture”)AndPNATechnologiesHoldingSdn.Bhd. (“PNAHolding”)

On 17 August 2006, the Company and its subsidiary, Green World Holdings Limited (“Green World”) entered into a conditional sale and purchase agreement (the “S&P agreement”) with CNA Venture and PNA Holding to acquire the entire issued and paid-up share capital of C.N.A. Manufacturing Sdn. Bhd. and PNA Technologies Sdn. Bhd. (the “acquisition”) subject to a Call Option for an aggregate purchase consideration of approximately $30 million to be satisfied by issuance of 731,500,000 ordinary shares of Green World (representing 90% of the enlarged issued and paid-up capital of Green World after completion of the Acquisition) to CNA Venture and PNA Holding at an issue price of $0.041 per share.

(d) Allotmentandissuanceofordinarysharespursuanttoconversionofconvertibleloan

On 24 August 2006, the Company allotted and issued a total of 3,060,000 ordinary shares pursuant to the conversion of $1 million convertible loan by Oversea-Chinese-Banking Corporation Limited.

The Company further allotted and issued a total of 6,121,000 ordinary shares pursuant to the conversion of $2 million convertible loan by Oversea-Chinese Banking Corporation Limited on 31 August 2006.

(e) CompulsoryacquisitionofsharesinGreenWorld

On 26 August 2006, the Company had exercised its rights under section 215(1) of the Singapore Companies Act, Cap. 50 to compulsorily acquire the remaining shares in Green World. Thereafter, Green World becomes a wholly-owned subsidiary of the Company.

32. Comparativefigures The financial statements for the current financial year cover a period of twelve months ended 30 June 2006 where as the comparative

figures cover the period from 8 April 2004 (date of incorporation) to 30 June 2005.

Certain comparative figures have been reclassified to conform with current year’s presentation as disclosed in notes to the financial statement.



Corporate Governance Statement

1. CORPORATEGOVERNANCESTATEMENT

The Board of Directors of Advance SCT Group (“ASCT” or the “Group”) is committed to maintaining a high standard of corporate governance within the ASCT Group and adopts practices based on the Code of Corporate Governance (the “Code”) where applicable and practical to the Group. ASCT recognizes the importance of good governance for continued growth and investors’ confidence. This statement outlines the main corporate governance practices adopted by the Company.

BOARDMATTERS

TheBoard’sConductofAffairs(Principle1oftheCode)

The Board of Directors leads, supervises, directs and controls the Group’s business operations and affairs. The Board’s key responsibilities include charting and reviewing the Group’s overall business strategy and policies, supervising executive management and reviewing the Group’s financial and managerial performance. The executive directors play a very active role in the management of the Group’s business activities and formulation of corporate strategies and are also responsible for the day to day operations and administration of the Group.

The Board comprises of the following directors :

Tan Kim SengNON-EXECUTIVE CHAIRMAN(Appointed on 29 August 2006)

Tea Yeok KianEXECUTIVE DIRECTOR AND GROUP CHIEF EXECUTIVE OFFICER

Seah Hock ThiamEXECUTIVE DIRECTOR(Appointed on 29 September 2006)

Samuel Ang King WeeEXECUTIVE DIRECTOR AND GROUP CHIEF OPERATING OFFICER

Sim Ai Ling (Shen Ailing)EXECUTIVE DIRECTOR

Lee Bon LeongINDEPENDENT DIRECTOR

Lee Ai BoonINDEPENDENT DIRECTOR(Appointed on 29 August 2006) Neo Gim KeongINDEPENDENT DIRECTOR

Newly appointed directors are briefed by the management on the business activities of the Group and its strategic directions. They also have the opportunity to visit the Group’s operational facilities to gain better understanding of the Group’s business operations.

The Board’s key responsibilities include charting and reviewing the Group’s overall business strategy and policies, supervising executive management and reviewing the Group’s financial performance and managerial performance. The following committees assist the Board in the execution of its responsibilities:

(a) the Audit Committee (“AC”); (b) the Nominating Committee (“NC”); and (c) the Remuneration Committee (“RC”).


The full Board meets on a twice yearly basis and as warranted by particular circumstances. However, adhoc, non-scheduled Board meetings may be convened to deliberate on urgent substantial matters. In addition to these meetings, corporate events and actions requiring Board approval were discussed over the telephone and Directors’ resolutions in writing were made. Article 110(4) of the Company’s articles of association provides for telephonic and videoconference meetings.

The number of Board meetings and other meetings held during the financial year ended 30 June 2006 and the attendances of the directors at these meetings are set below:

NameofDirectorsBoardMeetings

AuditCommitteeMeetings

NominatingCommitteeMeetings

RemunerationCommitteeMeetings

held attended held attended held attended held attended

Tea Yeok Kian 3 3 1 1 1 1 2 2

Sim Ai Leng (Shen Ailing) 3 3 1 1 1 1 2 2

Samuel Ang King Wee 3 3 1 1 1 1 2 2

Lee Bon Leong 3 2 1 1 1 1 2 2

Neo Gim Kiong 3 3 1 1 1 1 2 2

*Tan Kim Seng 3 - 1 - 1 - 2 -

*Seah Hock Thiam 3 - 1 - 1 - 2 -

*Lee Ai Boon 3 - 1 - 1 - 2 - *Mr Tan Kim Seng, Ms Lee Ai Boon and Mr Seah Hock Thiam were appointed after the financial year.

MattersRequiringBoardApproval

The Company has in place internal guidelines on a number of corporate events and actions for which Board approval is required. They include the following:

(a) approval of results announcement;(b) approval of the annual report and accounts;(c) declaration of interim dividends and proposal of final dividends;(d) authorisation of material transactions; (e) approval of change in corporate strategy; ( f ) convening of shareholders’ meeting; and(g) approval of acquisitions and disposals, funding of investments.

All other matters are delegated to committees.

BoardCompositionandBalance(Principle2oftheCode)

Currently, the Board consists of four executive and four independent non-executive directors. The Company considers that its composition of non-executive directors provides an effective Board, with a good mix of knowledge and an indepth business and commercial experience.

This balance is particularly important in ensuring that the strategies proposed by the management are fully discussed and examined, taking into account the long term interests of the Company and the Group.

IndependentMembersoftheBoardofDirectors

The Board has four non-executive independent members, representing 50% of the Board. They are Mr Tan Kim Seng, Mr Lee Bon Leong, Ms Lee Ai Boon and Mr Neo Gim Kiong. The criterion for independence is based on the definition set out in the Code. The Board considers an “independent” Director as one who has no relationship with the Company, its related companies or its officers that could interfere, or be reasonably perceived to interfere, with the exercise of the director’s independent business judgment.

Non-executive members of the Board exercise no management functions in the Company or any of its subsidiaries. Although all the directors have equal responsibility for the performance of the Group, the role of the non-executive directors is particularly important in ensuring that the strategies proposed by the executive management are fully discussed and rigorously examined and take account of the long-term interests, not only of the shareholders, but also of the employees, customers and suppliers.




ChairmanandChiefExecutiveOfficer(Principle3oftheCode)

The posts of Chairman and Chief Executive Officer (“CEO”) were held by Mr Tea Yeok Kian during the financial year. Mr Tea Yeok Kian is the founder of the Group. He has played an instrumental role in developing the business of the Group and has considerable industry experience and has provided the Group with strong leadership and vision.

Mr Tea holds an executive position as he has considerable industry experience and remains involved in significant corporate matters, especially those of strategic nature. In addition, he was responsible for the effective function of the Board as Chairman of the Board of Directors. The Chairman’s responsibilities in respect of Board proceedings include:

(a) scheduling of meetings (with the assistance of the Company Secretary) to enable the Board to perform its duties responsibly while not interfering with the flow of the Group’s operations; and

(b) assisting in ensuring the Group’s compliance with the Code.

Mr Tea exercised control over the quality, quantity and timeliness of information flow between the Board and the management.

For good corporate governance, the Group has appointed Mr Tan Kim Seng as a non-executive director and Chairman of the Board with effect from 29 August 2006. Mr Tea Yeok Kian remains as the Group’s CEO. There is now a clear separation between the roles and responsibilities of the Chairman and the CEO of the Group. The Chairman will be responsible for the Board and will act independently in the best interests of the Group. The CEO who is an executive director is responsible for the business directions and operational decisions of the Group. The Chairman and the CEO are not related.

The Chairman will ensure that Board meetings are held as and when it is necessary. He will also prepare the Board meeting agenda in consultation with the CEO. The Chairman will review most Board papers before they are presented to the Board and ensure that Board members are provided with complete, adequate and timely information. The Chairman will assist to ensure procedures are introduced to comply with the Code.

BoardMembership(Principle4oftheCode)

The Nominating Committee (“NC”) was established on 20 September 2004, and comprises three directors: two non-executive independent and one executive. The non-executive independent directors are Mr Lee Bon Leong (Chairman) and Mr Neo Gim Kiong while the executive director is Mr Tea Yeok Kian.

The responsibilities of the NC include that of re-nomination, having regard to the director’s contribution and performance as well as an annual determination whether or not a director is independent.

The NC considers and makes recommendations to the Board concerning the appropriate size and needs of the Board, having regard to the appropriate skill mix, personal qualities and experience required for the effective performance of the Board. The NC also recommends all appointments and retirement of directors and considers candidates to fill new positions created by expansion and vacancies that occur by resignation, retirement or for any other reason.

Candidates are selected for their character, judgment, business experience and acumen. Where a director has multiple board representations, the NC will evaluate whether or not a director is able to and has been adequately carrying out his or her duties as director of the Company. Final approval of a candidate is determined by the Board.

In appointing directors, the Board considers the range of skills and experience required in the light of:

(a) the geographical spread and diversity of the Group’s businesses;(b) the strategic direction and progress of the Group;(c) the current composition of the Board; and (d) the need for independence.

Article 104 of the Company’s articles of association provides that at each AGM, at least one-third of the directors for the time being (or, if their number is not a multiple of three, the number nearest to but not greater than one-third) shall retire from office by rotation, provided that all directors shall retire from office at least once every three years.


Article 108 of the Company’s articles of association provides that the directors shall have power at any time and from time to time to appoint any person to be a director either to fill a casual vacancy or as an additional director but the total number of directors shall not at any time exceed the maximum number (if any) fixed by these Articles. Any director so appointed shall hold office only until the next AGM and shall then be eligible for re-election but shall not be taken into account in determining the number of directors who are to retire by rotation at such meeting.

As at the date of this report, the members of the Board and their details are set out below:

NameofDirector

Dateofappointment/

(lastre-election)Natureof

appointment PrimefunctionOther

functions

Academicandprofessionalqualifications

DirectorshipsorChairmanships

bothpresentandheldoverlast3

yearsinotherlistedcompany

Tea Yeok Kian

8 April 2004

(N.A.)

Executive Chief Executive Officer (CEO)

Member of RC and NC

Diploma in Electronics

and Electrical Engineering

Green World Holdings Limited

Sim Ai Leng (Shen Ailing)

8 April 2004

(N.A.)

Executive - - Bachelor of Science in Chemistry

Not applicable

Samuel Ang King Wee

20 September2004

(6 October 2005)

Executive Chief Operating

Officer(COO)

Member of AC

Bachelor in Engineering and Post Graduate

Diploma in Marketing

Green World Holdings Limited

Lee Bon Leong

20 September2004

(6 October 2005)

Non-Executive Independent

- Chairman of RC and NC, Member of

AC

Masters of Law Annaik LtdFreight Link Express Holdings LtdHeshe Holdings LtdHG Metal Manufacturing LtdMegachem Ltd

Neo Gim Kiong

20 September 2004

(6 October 2005.)

Non-Executive Independent

- Chairman of AC, Member

of RC and NC

Bachelor of Science

(Honours) in Mathematics

Present directorship

Ban Leong Technology Ltd

Past directorship

Jackspeed Corporation Limited

Tan Kim Seng

29 August 2006 Non-ExecutiveIndependent

- - Bachelor of Science in

Mathematics

Past directorship

KS Engergy Services Ltd

Lee Ai Boon 29 August 2006 Non-ExecutiveIndependent

- - Bachelor of Accountancy

Not applicable

Seah Hock Thiam

29 September2006

Executive - - - Green World Holdings Limited

Details of interests of directors who held office at the end of the financial year in shares of the Company and its subsidiaries are set out in the Directors’ Report.



BoardPerformance(Principle5oftheCode)

The Board recognises the merit of having some degree of formal assessment of the effectiveness of the Board as a whole and the contribution by each director to the effectiveness of the Board. The NC together with the Board have considered the guidelines contained in the Code and formulated a plan to evaluate the performance of the Board as a whole as well as the individual directors using a set of performance criteria.

AccesstoInformation(Principle6oftheCode)

The directors receive a regular supply of information from the management about the Group so that they are equipped to play as full a part as possible in Board meetings. Detailed Board papers are prepared for each meeting of the Board. The Board papers include sufficient information on financial, business and corporate issues to enable the directors to be properly briefed on issues to be considered at the Board meetings.

All directors have unrestricted access to the Company’s records and information. The directors may also liaise with senior management as and when required to seek additional information. In addition, the directors have separate and independent access to the Company Secretary, who is responsible to the Board for ensuring that established procedures and relevant statutes and regulations are complied with. The Company Secretary attends almost all Board meetings.

Should directors need to seek independent professional advice concerning any aspect of the Group’s operations or undertakings in order to fulfil their duties and responsibilities as directors, the Board will appoint at the Company’s expense a professional adviser to assist such director.

REMUNERATIONMATTERS

ProceduresforDevelopingRemunerationPolicies(Principle7oftheCode)

The Remuneration Committee (“RC”) was established on 20 September 2004 and comprises three directors: two non-executive independent and one executive. The non-executive independent directors are Mr Lee Bon Leong (Chairman), and Mr Neo Gim Kiong, while the executive director is Mr Tea Yeok Kian.

The RC has access to advice from the internal human resource department and, if necessary, expert advice from outside the Company.

The RC reviews and approves recommendations on the remuneration packages for the Chairman and the other executive directors based on the performance of the Group and the individual director. No director individually decides his or her own remuneration. The RC reviews and approves recommendations on remuneration policies and packages for key executives. The review covers all aspects of remuneration, including but not limited to directors’ fees, salaries, allowances, bonuses, options, and benefits-in-kind. The RC’s recommendations are submitted for endorsement by the entire Board.

LevelandMixofRemuneration(Principle8oftheCode)

The Group’s remuneration policy is to provide compensation packages at market rates which reward successful performance and attract, retain and motivate managers and directors. The remuneration packages take into account the performance of the Group and the individual directors.

Fees for the non-executive directors are determined by the executive directors on the recommendation of the Chairman, based on the effort and time spent and the responsibilities of the non-executive directors. The total remuneration of the non-executive directors is recommended for approval at annual general meetings.



DisclosureonRemuneration(Principle9oftheCode)

Details of remuneration and fees paid to the directors for the financial year ended 30 June 2006 are set out below:

RemunerationBand NumberofDirectors

2006 2005

$500,00 and above 1 -

$250,000 to below $500,000 1 2

Below $250,000 3 3

Total 5 5

A summary compensation table of the directors’ remuneration for the financial year ended 30 June 2006 (Group) is set out below:

NameofDirectorSalary

(%)Bonus

(%)Fee(%)

Allowancesandotherbenefits

(%)Total(%)

Tea Yeok Kian 82.5 13.5 - 4.0 100

Sim Ai Leng (Shen Ailing) 77.6 13.0 - 9.4 100

Samuel Ang King Wee 77.7 9.2 - 13.1 100

Lee Bon Leong - - 100 - 100

Neo Gim Kiong - - 100 - 100

Tan Kim Seng * - - - - -

Lee Ai Boon* - - - - -

Seah Hock Thiam* - - - - -

* The disclosures are not applicable as the directors were appointed after the financial year.

The remuneration of the following Key Executives falls below S$250,000/- per annum.

NameofExecutiveSalary

(%)Bonus

(%)

Allowancesandotherbenefits

(%)Total(%)

Foo Lee Peng 78.6 10.1 11.3 100

Chang Te Lung 83.3 16.7 - 100

Andrew Oh 100.0 - - 100

The RC will review the remuneration of the directors and the executives from time to time. As such, the Board is of the view that there is no necessity at the moment to invite the annual general meeting to approve the remuneration policies.

ACCOUNTABILITY

Accountability(Principle10oftheCode)

In presenting the annual financial statements and interim announcements to shareholders, it is the aim of the Board to provide the shareholders with a balanced assessment of the Group’s position and prospects. The management currently provides the executive directors with detailed management accounts of the Group’s performance, position and prospects on a monthly basis. Non-executive directors are briefed on significant matters when required and receive appropriately detailed reports on a regular basis.

AuditCommittee(Principle11oftheCode)

The Audit Committee (“AC”) is currently chaired by Mr Neo Gim Kiong and comprises two other directors, namely Mr Lee Bon Leong and Mr Samuel Ang King Wee. Mr Neo and Mr Lee are non-executive and independent, while Mr Ang is an executive director.

The Board is of the view that the members of the AC are appropriately qualified to discharge their responsibilities.



The AC meets periodically with the Group’s external auditors to review accounting, auditing and financial reporting matters so as to ensure that an effective control environment is maintained in the Group. Specifically, the Audit Committee:

(a) reviews and evaluates financial and operating results and accounting policies;(b) reviews the audit plans and scope of audit examination of the external audit, (c) evaluates the adequacy of the internal control systems of the Group by reviewing written reports from the external auditors, and

the management’s responses and actions to correct any deficiencies;(d) reviews the annual and interim financial statements and announcements to shareholders before submission to the Board for

adoption;(e) reviews transactions falling within the scope of Chapter 9 of the SGX-ST Listing Manual; and(f) considers the appointment/re-appointment of external and internal auditors.

The AC is also tasked to conduct an annual review of the independence of external auditors and the total fees for non-audit compared with audit services to satisfy itself that the nature and volume of non-audit services will not prejudice the independence and objectivity of the auditors before confirming their re-nomination.

The AC has full access to the management and also full discretion to invite any director or executive officer to attend its meetings, as well as reasonable resources to enable it to discharge its function properly.

InternalControls(Principle12oftheCode)

The Board acknowledges that it is responsible for the overall internal control framework, but recognises that no cost effective internal control system will preclude all errors and irregularities, as a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.

The directors, with the assistance of the internal auditors when appointed, will review annually the effectiveness of all internal controls, including operational controls.

InternalAudit(Principle13oftheCode)

The Company is still in the process of setting up an internal audit function which may be outsourced to an accounting/audit firm and is therefore expected to meet the required standards set by the relevant professional bodies in Singapore. The internal auditors will report primarily to the Chairman of the AC.

COMMUNICATIONWITHSHAREHOLDERS(Principles14and15oftheCode)

The Company believes in timely and accurate dissemination of information to its shareholders. The Board makes every effort to comply with continuous disclosure obligations of the Company under the SGX-ST’s Listing Rules and the Singapore Companies Act. Where there is inadvertent disclosure made to a selected group, the Company will make the same disclosure publicly as soon as practicable. Communication to shareholders is normally made through:

(a) annual reports that are prepared and issued to all shareholders.(b) half yearly financial results containing a summary of the financial information and affairs of the Group for the period;(c) notices and explanatory memoranda for general meetings; and(d) disclosures to the SGX-ST;

In addition, shareholders are encouraged to attend the annual general meetings to ensure a high level of accountability. The annual general meeting is the principal forum for dialogue with shareholders. The Company recognizes the value of feedback from shareholders. During the annual general meetings, shareholders are given ample time and opportunities to air their views and concerns. All the directors will endeavour to attend the annual general meetings and extraordinary general meetings, and shareholders will be given the chance to share their thoughts and ideas or ask questions relating to the resolutions to be passed or on other corporate and business issues.



The Chairman of the AC, the RC and the NC as well as the auditors will normally be present at general meetings to address queries raised by the shareholders.

The Company allows members to appoint proxies to attend and vote at the general meetings, as required under Section 181 of the Singapore Companies Act and Article 82 of the Company’s articles of association.

Separate resolutions are proposed at general meetings for each distinct issue.

2. INTERESTEDPERSONTRANSACTIONS

Aggregate value of all interested person transactions during the financial year under review (excluding transactions less than $100,000)

Name of interested person $’000

NIL

During the year, the AC has reviewed and concluded that there is no related party transaction that requires announcement or requires the shareholders’ approval as defined under the Listing Rules.

3. MATERIALCONTRACTS

There are no material contracts (and loans) of the Company and its subsidiaries involving the interest of the CEO or any director or controlling shareholder.

4. DEALINGSINSECURITIES

The Company has issued internal compliance code on securities transactions to Directors and key employees (including employees with access to price sensitive information to the Company’s shares) of the Group setting out the code of conduct on transactions in the Company’s shares by these persons and the implications of insider trading.



Statistics of Shareholdings As at 15 September 2006

DISTRIBUTIONOFSHAREHOLDINGS NO.OFSIZEOFSHAREHOLDINGS SHAREHOLDERS % NO.OFSHARES % 1 - 999 11 1.43 2,290 0.00 1,000 - 10,000 283 36.71 1,880,305 0.85 10,001 - 1,000,000 451 58.49 32,031,600 14.55 1,000,001 AND ABOVE 26 3.37 186,309,835 84.60

TOTAL 771 100.00 220,224,030 100.00

TWENTYLARGESTSHAREHOLDERS NO. NAME NO.OFSHARES %

1 CITIBANK NOMINEES SINGAPORE PTE LTD 36,802,850 16.71 2 HONG LEONG FINANCE NOMINEES PTE LTD 25,502,000 11.58 3 SEAH HOCK THIAM 20,131,527 9.14 4 MAYBAN NOMINEES (S) PTE LTD 16,260,000 7.38 5 TEA YEOK KIAN 1 13,818,970 6.27 6 ROYAL BANK OF CANADA (ASIA) LTD 9,658,000 4.39 7 OCBC SECURITIES PRIVATE LTD 8,057,500 3.66 8 ASTI HOLDINGS LIMITED 7,000,000 3.18 9 HSBC (SINGAPORE) NOMINEES PTE LTD 6,495,000 2.95 10 SIM AI LENG 5,397,510 2.45 11 KIM ENG SECURITIES PTE. LTD. 5,290,500 2.40 12 UOB KAY HIAN PTE LTD 4,140,500 1.88 13 SING INVESTMENTS & FINANCE NOMINEES PTE LTD 3,757,500 1.71 14 CIMB-GK SECURITIES PTE. LTD. 3,380,288 1.53 15 CHEW BOON PING 2,840,000 1.29 16 CAPITAL INTELLIGENCE LIMITED 2,715,000 1.23 17 LEE KOK PENG 2,700,000 1.23 18 HL BANK NOMINEES (S) PTE LTD 2,100,000 0.95 19 DBS VICKERS SECURITIES (S) PTE LTD 1,911,000 0.87 20 LIM & TAN SECURITIES PTE LTD 1,756,500 0.80

TOTAL 179,714,645 81.60

1 The total number of shares held by Tea Yeok Kian is 74,658,820 comprising 33.90% of the issued and paid up capital. The shares are registered in the names of :-

CITIBANK NOMINEES SINGAPORE PTE LTD 36,739,850 MAYBAN NOMINEES (S) PTE LTD 14,100,000 HONG LEONG FINANCE NOMINEES PTE LTD 10,000,000 TEA YEOK KIAN 13,818,970

SUBSTANTIALSHAREHOLDERSAS AT 15 SEPTEMBER 2006 (as shown in the Company’s Register of Substantial Shareholders)

DirectInterest DeemedInterest Noofshares % Noofshares %

Tea Yeok Kian 74,658,820 33.90 - - Seah Hock Thiam 20,131,527 9.14 - -

PERCENTAGEOFSHAREHOLDINGSINPUBLICHANDS 53.05% of the Company’s issued and paid-up capital is held in the hands of the public. The Company has compiled with Rule 723 of the Listing Manual of the SGX-ST.


Notice of Annual General Meeting

NOTICEISHEREBYGIVEN that the Second Annual General Meeting of Advance SCT Limited will be held at No. 6 Tuas View Circuit, Singapore 637599 on Monday, 30 October 2006 at 10.00 a.m. for the following purposes:

AsOrdinaryBusiness

1. To receive and adopt the Directors’ Report and Audited Accounts for the financial year ended 30 June 2006, together with the Auditors’ Report thereon.

(Resolution1)

2. To declare first and final one-tier tax exempt dividend of 0.7 Singapore cent per ordinary share for the financial year ended 30 June 2006.

(Resolution2)

3. To re-elect Mr Tea Yeok Kian, a Director retiring under Article 104 of the Company’s Articles of Association and who, being eligible, offers himself for re-election.

Note: Mr Tea Yeok Kian, an executive director, when re-elected, will remain as a member of the Remuneration Committee and a member of the Nominating Committee.

(Resolution3)

4. To re-elect Ms Sim Ai Leng (Shen AiLing), a Director retiring under Article 104 of the Company’s Articles of Association and who, being eligible, offers herself for re-election.

(Resolution4)

5. To re-elect Mr Tan Kim Seng, a Director retiring under Article 108 of the Company’s Articles of Association and who, being eligible, offers himself for re-election.

(Resolution5)

6. To re-elect Ms Lee Ai Boon, a Director retiring under Article 108 of the Company’s Articles of Association and who, being eligible, offers herself for re-election.

(Resolution6)

7. To re-elect Mr Seah Hock Thiam, a Director retiring under Article 108 of the Company’s Articles of Association and who, being eligible, offers himself for re-election.

(Resolution7)

8. To approve the payment of Directors’ Fees of S$81,000/- for the financial year ended 30 June 2006.(Resolution8)

9. To re-appoint Messrs BDO Raffles as auditors of the Company and to authorise the Directors to fix their remuneration.(Resolution9)

10. To transact any other business that may be transacted at an Annual General Meeting.

AsSpecialBusiness

11. To consider and, if thought fit, to pass with or without any amendments the following resolutions as ordinary resolutions:

a) That pursuant to Section 161 of the Companies Act, Chapter 50 and the rules of the Listing Manual of the Singapore Exchange Securities Trading Limited (“SGX-ST”) authority be and is hereby given to the Directors to:

I) i) issue shares in the capital of the Company (“shares”) (whether by way of rights, bonus or otherwise); and/or

ii) make or grant offers, agreements or options (collectively, “Instruments”) that might or would require shares to be issued, including but not limited to the creation and issue of warrants, debentures or other instruments convertible or exchangeable 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


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

provided that :

1) the aggregate number of shares to be issued pursuant to this Resolution (including shares to be issued in pursuance of Instruments made or granted pursuant to this Resolution but excluding shares which may be issued pursuant to any adjustments effected under any relevant Instrument), does not exceed 50 per cent. of the issued share 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 but excluding shares which may be issued pursuant to any adjustments effected under any relevant Instrument) does not exceed 20 per cent. of the issued share capital of the Company (as calculated in accordance with sub-paragraph 2) below);

2) (subject to such manner of calculation as may be prescribed by the SGX-ST) for the purpose of determining the aggregate number of shares that may be issued under sub-paragraph 1) above:

i) the percentage of issued share capital shall be calculated based on the issued share capital of the Company as at the date of the passing of this Resolution after adjusting for:

(aa) new shares arising from the conversion or exercise of any convertible securities and share options that have been issued pursuant to any previous shareholder approval and which are outstanding as at the date of the passing of this Resolution; and

(bb) any subsequent consolidation or subdivision of shares; and

ii) in relation to an Instrument, the number of shares shall be taken to be that number as would have been issued had the rights therein been fully exercised or effected on the date of the making or granting of the Instrument;

3) in exercising the authority conferred by this Resolution, the Company shall comply with the provisions of the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST) 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 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.

(Resolution10)

b) That approval be and is hereby given to the Directors to offer and grant options from time to time in accordance with the provisions of the Advance SCT Employee Share Option Scheme, and, pursuant to Section 161 of the Companies Act, Cap. 50, to allot and issue from time to time such number of shares in the capital of the Company (the “Scheme Shares”) as may be required to be issued pursuant to the exercise of options granted under the Advance SCT Employee Share Option Scheme and to do all such acts and things as may be necessary or expedient to carry the same into effect, provided always that the aggregate number of Scheme Shares shall not exceed 15 per cent. of the issued share capital of the Company from time to time.

(Resolution11)

ByOrderoftheBoard

TERENCETEAYEOKKIANDirector

Singapore, 11 October 2006

Note: A Member of the Company entitled to attend and vote at the above meeting may appoint a proxy (or in the case of a corporation, to appoint its authorised representative or proxy) to attend and vote on his behalf. Such proxy need not be a member of the Company. The instrument appointing a proxy must be deposited at the registered office of the Company at No. 6 Tuas View Circuit, Singapore 637599 not less than 48 hours before the time for holding the Meeting.




StatementpursuanttoArticle64oftheCompany’sArticlesofAssociation

OrdinaryResolution10Resolution 10, if passed, will empower the Directors to issue shares in the capital of the Company and/or Instruments (as defined above). The aggregate number of shares to be issued pursuant to this Resolution (including shares to be issued in pursuance of Instruments made or granted pursuant to this Resolution but excluding shares which may be issued pursuant to any adjustments effected under any relevant Instrument) shall not exceed 50 per cent. of the issued share capital of the Company, with a sub-limit of 20 per cent. for shares issued other than on a pro rata basis (including shares to be issued in pursuance of Instruments made or granted pursuant to this Resolution but excluding shares which may be issued pursuant to any adjustments effected under any relevant Instrument) to shareholders. For the purpose of determining the aggregate number of shares that may be issued, the percentage of issued share capital will be calculated based on the issued share capital of the Company as at the date of the passing of this Resolution after adjusting for:

a) new shares arising from the conversion or exercise of convertible securities and share options that have been issued pursuant to any previous shareholder approval and which are outstanding as at the date of the passing of this Resolution; and

b) any subsequent consolidation or subdivision of shares.

This calculation is in accordance with Rule 806(3) of the Listing Manual of the Singapore Exchange Securities Trading Limited. The authority will continue in force until 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, unless previously revoked or varied at a general meeting.

OrdinaryResolution11Resolution 11, if passed, will empower the Directors to offer and grant options under the Advance SCT Employee Share Option Scheme which was approved at the Extraordinary General Meeting of the Company on 20 September 2004 (as from time to time amended, modified or supplemented), and to allot and issue shares in the capital of the Company, pursuant to the exercise of options under the Advance SCT Employee Share Option Scheme provided that the aggregate number of shares to be issued does not exceed 15 per cent. of the issued share capital of the Company for the time being.

NOTICEOFBOOKSCLOSURE

NOTICE IS HEREBY GIVEN that the Share Transfer Books and Register of Members of ADVANCE SCT LIMITED (the “Company”) will be closed on 7 November 2006 for the preparation of dividend warrants.

Duly completed registrable transfers received by the Company’s Registrar, Lim Associates (Pte) Ltd, 10 Collyer Quay #19-08, Ocean Building, Singapore 049315 up to 5.00 pm on 6 November 2006 will be registered to determine shareholders’ entitlements to the said dividend. Members whose Securities Accounts with The Central Depository (Pte) Limited are credited with shares at 5.00 pm on 6 November 2006 will be entitled to the proposed dividend.

Payment of the dividend, if approved by the members at the Annual General Meeting to be held on 30 October 2006, will be made on 22 November 2006.

ByOrderoftheBoard

TERENCETEAYEOKKIANExecutiveDirector

Singapore, 11 October 2006


ADVANCESCTLIMITEDRegistration No. 200404283C(Incorporated in Singapore)

PROXYFORM

I/We* ___________________________________________________________________________________________________________________

of _____________________________________________________________________________________________________________________

being a member/members* of ADVANCESCTLIMITED (the “Company”), hereby appoint:

Name AddressNRIC/

PassportNumberProportionof

Shareholdings

and/or (delete as appropriate)

as my/our* proxy/proxies* to vote on my /our* behalf, at the Second Annual General Meeting of the Company, to be held at No. 6 Tuas View Circuit, Singapore 637599 on Monday, 30 October 2006 at 10.00 a.m. and at any adjournment thereof. I/We* direct my/our* proxy/proxies* to vote for or against the Resolutions to be proposed at the Meeting as indicated hereunder. If no specific direction as to voting is given, the proxy/proxies* will vote or abstain from voting at his/their* discretion, as he/they* will on any other matter arising at the Meeting.

No. Resolutions For Against

ORDINARYBUSINESS

1. To receive and adopt the Directors’ Report and the Audited Accounts for the financial year ended 30 June 2006, together with the Auditors’ Report thereon.

2. To declare first and final dividend.

3. To re-elect Mr Tea Yeok Kian (under Article 104).

4. To re-elect Ms Sim Ai Leng (ShenAiLing) (under Article 104).

5. To re-elect Mr Tan Kim Seng (under Article 108).

6. To re-elect Ms Lee Ai Boon (under Article 108).

7. To re-elect Mr Seah Hock Thiam (under Article 108).

8. To approve Directors’ Fees for the financial year ended 30 June 2006.

9. To re-appoint Messrs BDO Raffles as auditors and to authorise Directors to fix their remuneration.

SPECIALBUSINESS

10. To authorise Directors to issue shares and/or Instruments pursuant to Section 161 of the Companies Act, Cap. 50.

11. To authorise Directors to offer and grant options and to issue shares pursuant to the grant of the options.

Dated this ________ day of _____________________ 2006.

TotalNumberofShares

....................................................…………..Signature(s) of member(s)/Common Seal

IMPORTANT

1. For investors who have used their CPF monies to buy the Company’s shares, this Annual Report is forwarded to them at the request of their CPF Approved Nominees and is sent solely FOR INFORMATION ONLY.

2. This Proxy Form is not valid for use by CPF investors and shall be ineffective for all intents and purposes if used or purported to be used by them.


Notes:

1. Please insert the total number of ordinary shares in the capital of the Company (“Shares”) held by you. If you have Shares entered against your name in the Depository Register (as defined in Section 130A of the Companies Act, Chapter 50 of Singapore), you should insert that number of Shares. If you have Shares registered in your name in the Register of Members, you should insert that number of Shares. If you have Shares entered against your name in the Depository Register and Shares registered in your name in the Register of Members, you should insert the aggregate number of Shares entered against your name in the Depository Register and registered in your name in the Register of Members. If no number is inserted, this instrument appointing a proxy or proxies will be deemed to relate to all Shares held by you.

2. A member of the Company entitled to attend and vote at a Meeting of the Company is entitled to appoint one or two proxies to attend and vote instead of him. A proxy need not be a member of the Company.

3. Where a member appoints two proxies, the appointments shall be invalid unless he specifies the proportion of his shareholding (expressed as a percentage of the whole) to be represented by each proxy.

4. This instrument appointing a proxy or proxies must be deposited at the registered office of the Company not less than 48 hours before the time appointed for the Annual General Meeting.

5. The instrument appointing a proxy or proxies must be under the hand of the appointer or of his attorney duly authorised in writing. Where the instrument appointing a proxy or proxies is executed by a corporation, it must be executed either under its seal or under the hand of an officer or attorney duly authorised.

6. A corporation which is a member may authorise by resolution of its directors or other governing body such person as it thinks fit to act as its representative at the Annual General Meeting, in accordance with Section 179 of the Companies Act, Chapter 50 of Singapore.

7. The Company shall be entitled to reject the instrument appointing a proxy or proxies if it is incomplete, improperly completed or illegible or where the true intentions of the appointer are not ascertainable from the instructions of the appointer specified in this instrument appointing a proxy or proxies.

8. In the case of members whose Shares are entered against their names in the Depository Register, the Company may reject any instrument appointing a proxy or proxies lodged if such members are not shown to have Shares entered against their names in the Depository Register as at 48 hours before the time appointed for holding the Annual General Meeting as certified by The Central Depository (Pte) Limited of the Company.

* Delete accordingly

6 Tuas View Circuit

Singapore 637599

Tel: +65 6898 4070

Fax: +65 6898 4073

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