Star River Electronics Financial Analysis

Star River Electronics Ltd.

Exhibit 1

Historical Income Statements Projected Income Statements

Fiscal Year Ended June 30

Projected Projected

1998 1999 2000 2001 2002 2003

Sales 71,924 80,115 92,613 106,042 121,948 140,241

Operating Expneses:

Production costs and expenses 33,703 38,393 46,492 53,445 61,462 70,681

Admin. And selling expenses 16,733 17,787 21,301 24,177 27,804 31,974

Depreciation 8,076 9,028 10,392 11,360 12,005 13,481

Total operating expenses 58,512 65,208 78,185 88,983 101,271 116,136

Operating profit 13,412 14,908 14,429 17,059 20,678 24,104

Interest expense 5,464 6,010 7,938 7,818 9,328 10,102

Earnings before taxes 7,949 8,897 6,491 9,241 11,349 14,002

Income taxes (24.5% tax rate) 2,221 2,322 1,601 2,093 2,781 3,431

Net earnings 5,728 6,576 4,889 7,148 8,569 10,572

Dividends to all common shares 2,000 2,000 2,000 2,000 2,000 2,000

Retentions of earnings 3,728 4,576 2,889 5,148 6,569 8,572

tax rate 24.50%

growth rate 15%

Star River Electronics Ltd.

Exhibit 1

Historical Balance Sheets

Fiscal Year Ended June 30

(SGD 000) Onaly Debt Financing

Percent of Projected Projected

1998 1999 2000 2001 Sales ( 106,042) 2002 2003

Assets:

Cash 4,816 5,670 6,090 5,795 5.46% 6,664 7,664

Acounts receivable 22,148 25,364 28,078 35,486 33.46% 40,809 46,930

Inventories 23,301 27,662 53,828 63,778 60.14% 73,345 84,347

Total current assets 50,265 58,697 87,996 105,059 120,817 138,941

Gross property, plant & equipment 64,611 80,153 97,899 115,153 109% 159,726 179,590

Accumulated depreciation (4,559) (13,587) (23,979) (35,339) (47,345) (60,826)...