Towards a Greener Future - ISOTeamisoteam.listedcompany.com/misc/ar2013/ar2013.pdf ·...

ISOTEAM LTD. Annual Report 2013

Towards a Greener Future

Awards & Accolades Since our inception, we have received recognition for our focus and commitment to quality and safety.

AwArds/AccreditAtionsYear

Awarded

ISO 14001:2004 (Environmental Management System)For general building construction and provision of suspended scaffolding works

2013

bizSAFE Level Star 2011

bizSAFE Level 3 2008

OHSAS 18001:2007 (Occupational Health and Safety Management System)For general building construction and provision of suspended scaffolding works

2007

ISO 9001:2008 (Quality Management System) For general building construction

2005

OHSAS 18001:2007 (Occupational Health and Safety Management System)For general building construction

2005

BcA LicencesGeneral Building (CW01) Financial Grade B1 (up to $40 million)

Repairs and Redecoration (CR09) Financial Grade L5 (up to $13 million)

Interior decoration and finishing works (CR06) Financial Grade L2 (up to $1.3 million)

Waterproofing installation (CR13) Financial Grade L3 (up to $5 million)

General Builder Class 1 (able to undertake projects of any value)

other AwArds“2011 Successful Entrepreneur” Award (received by our founders)

our motivation to build a sustainable future for the environment has always been the driving force behind our business decisions. over the last 15 years, we have ingrained eco-conscious efforts into our work scope and everyone at our company hold this very close to their hearts. we believe apart from conserving the ecology and vital resources, this gives us an edge over our competitors. this will lead us to a brighter and greener, and more sustainable future for our business and the environment.

C O n t E n t S

Our Business 02

Financial Highlights 03

Project Showcase 04

Joint Chairman & CEO’s Message 08

Board of Directors 12

Executive Officers 14

Corporate Information 15

Corporate Structure 16

Operating & Financial Review 17

Commitment to Corporate Social Responsibility 24

Green Product Showcase 28

Financial Report 29

Statistics of Shareholdings 84

notice of AGM 86

Proxy Form

This document has been prepared by the Company and its contents have been reviewed by the Sponsor for compliance with the relevant rules of the SGX-ST. The Sponsor has not independently verified the contents of this document. This document has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this document, including the correctness of any of the statements or opinions made, or reports contained in this document. The contact person for the Sponsor is Ms Joan Ling, Senior Vice President, Head of Corporate Finance, at 16 Raffles Quay, #40-01A Hong Leong Building, Singapore 048581, Telephone (65) 6415 9886.

Corporate ProfileFounded in 1998 and listed on the Catalist Board of the Singapore Exchange Securities Trading Limited on 12 July 2013, ISOTeam Ltd. is an established player in the building maintenance and estate upgrading industry in Singapore.

The Group is an early adopter of eco-conscious methods with over 15 years of Repairs & Redecoration (“R&R”) and Addition & Alteration (“A&A”) experience. To-date, the Group has successfully undertaken more than 200 R&R and A&A projects involving over 1,500 buildings in both public and private sectors.

Backed by a strong track record, ISOTeam has been awarded the Building and Construction Authority (“BCA”) L5 (CR09) grading, qualifying it to tender for R&R projects of up to $13 million per project, as well as the B1 (CW01) grading for general building works, which gives it the ability to tender for projects of up to $40 million per project. The Group is also the exclusive applicator of paint works for both SKK (since 1998) and Nippon Paint Singapore (since 2004) in the public housing sector in Singapore.

Over the years, ISOTeam has repeatedly won tenders for projects even without being the lowest in price, which is a strong testament to its quality, reliability and safety track record in the industry. With its expertise in handling R&R projects, the Group has also won many awards and accolades.

Aligned with its eco-conscious focus, ISOTeam works with strategic partners and technology companies to develop and commercialise green solutions and products that it integrates into its projects. These include thermal plaster, which reduces the ambient temperature in buildings, slip-resistant floor coating, anti-bacterial and self-cleaning surface coating and composite timber decking.

Our Vision Number 1 and Preferred Partner in Total Maintenance Solution

Our MissionDeliver quality, cost efficient, reliable services and works to achieve total customer satisfaction

Our Values1. People Development: We offer fulfilling career

prospects and develop individuals’ potential to build highly committed and competent teams with a strong sense of integrity and adaptability

2. Performance and Accountability: We take ownership and initiative to achieve expected KPIs through continuous learning and upgrading of knowledge and skills

3. Customer Focus: We offer high quality products and services with innovative and sustainable solutions to surpass customer expectations with desired results

4. Relationship and Bonding: We value and engage all stakeholders with trust, respect and care for long term win-win situations

5. Teamwork: We practise effective and open communication and seek co-operation and collaboration among stakeholders to achieve desired goals

ISOTEAM LTD. | Annual Report 2013 1

Our Business

BuSINESS OvErvIEwISOTeam is a building maintenance and estate upgrading company that provides eco-driven R&R and A&A services to the public and private sector in Singapore.

Our customers from the public sector include town councils, government bodies and statutory boards such as HDB and those from the private sector include property owners and developers, and main contractors.

r&r Business Our R&R business comprises routine non-structural maintenance works that are recurring in nature. With a proven track record in safety, reliability and on-time delivery, we have been regularly contracted to handle buildings that are still occupied and operational. Such working conditions require meticulous planning and utmost speed and efficiency so that inconvenience to existing occupants is minimised and cost-efficiency to customers is maximised.

We are the exclusive applicator of paint works for both SKK (since 1998); and Nippon Paint Singapore (since 2004), under the public housing sector, and for SKK (since August 2013) under JTC and HDB industrial projects and army camps. Our long term relationships with these major paint manufacturers in Singapore attest to our reputation as a market leader in the public sector.

A&A BusinessOur A&A business focuses mainly on structural and infrastructure works.

With our experience and expertise, we have secured more than 10 NRP projects initiated by the HDB thus far, the purpose of which is to inject vibrancy and energy into older neighbourhoods. Apart from this, our A&A projects also cover the upgrading of food centres under the National Environment Agency’s HUP to provide facelifts to older markets and hawker centres in Singapore.

INTEgrATINg EcO-cONScIOuS

SOLuTIONS into all our R&R and

A&A Works

r&rRepairs +

Redecoration worksAddition +

Alteration works

A&A

• Repainting, redecoration, repairs

• Improvement works• Routine maintenance

works• Recurring in nature

• Neighbourhood Renewal Programme (“NRP”)

• Hawker Upgrading Programme (“HUP”)

• Estate Upgrading Programme (“EUP”)

FOr BOTh PuBLIc AND PrIvATE SEcTOrS

ISOTEAM LTD. | Annual Report 20132

Financial Highlights (For The Financial Year Ended 30 June)

Repairs & Redecoration works

$4.8mAddition & Alteration works

$3.4m

FY2013(4)

$48.2mREVEnuE

$6.0mnET PROFiT

Repairs & Redecoration works

$26.4mAddition & Alteration works

$21.8m

FY2013(3)

revenue by Segment (%) gross Profit by Segment (%)

gross Profit ($m) & gross Profit Margin (%)

FY‘10 FY‘11(1) FY‘12 FY‘13

6.1

3.5

6.4

8.2

22.9% 14.4% 18.1% 17.0%

Gross Profit Gross Profit Margin

FY‘10 FY‘11(1) FY‘12 FY‘13

Earnings per Share (cents) & return on Assets (%)

2.45

0.17

5.11(2)

10.7% 0.7% 10.9% 18.3%

2.51(2)

Earnings Per Share Return on Assets

54.7% 58.8%

45.1% 40.9%

R&R R&R

A&A A&A

revenue ($m)

FY‘10 FY‘11(1) FY‘12 FY‘13

26.7 24.5

35.4

48.2

CAGR 21.8%

Net Profit ($m)

FY‘10 FY‘11(1) FY‘12 FY‘13

2.1

0.1

3.0

6.0

CAGR 41.9%

1. In FY2011, key milestones of revenue for new projects were generally recognised in FY20122. Based on the post-IPO share capital of 117,595,831 shares in issue

3. FY2013 revenue includes revenue from “other” segment amounting to $96,000 or 0.2%4. FY2013 gross profit includes gross profit from “other” segment amounting to $23,000 or 0.3%


Before R&R

Leveraging Our Strengths

Since 1998REJuVEnATing nEW liFE

A strong 15-year track record and reputation for timely delivery, quality, reliability and safety. A proven ability to provide customers with eco-conscious and cost effective solutions. A capability to handle a wide spectrum of projects including ‘live’ buildings, which involves numerous safety and delivery constraints. These are just some of the strengths that make ISOTeam a leading player in our business. We will continue to build on these strengths to drive future growth for the Group.

cASE STuDY: A&A Works to Bukit Merah View Market (Hawker upgrading Programme)

cONTrAcT vALuE: $5.7 million

DurATION: 8 months

ScOPE OF wOrk: The market was rebuilt with new roofing sheets and insulation, exhaust system, electrical wiring, gas and water piping installation, wall and floor tiling, surface drainage, sump pits, stall signage, seats and tables and waterproofing works. This upgraded its cleanliness and usability which will remain relevant for years to come. Toilets and wash areas were carefully designed to let in natural daylight and increase energy efficiency and encourage a free-breathing open environment. A vertical green wall feature was also added to screen the bin centre to provide a natural insulation against heat and odour. A Smart Skylight system was also installed to reflect natural sunlight into lightwells which are used to illuminate the market.

EcO-INNOvATIONS:

• Use of LED lights and stall signage and open-concept toilets • Vertical greening of bin area • Recycle and reuse concrete waste as hardcore base • Planted 330 trees and shrubs to enhance the landscape with

natural shade and a green environment• Incorporating green designs into the plans to make use

of natural light to reduce energy usage • Installed a Smart Skylight System to maximise use of

natural sunlightSmart Skylight System installed on the roof tracks the sun’s position throughout the day time to maximise the use of natural sunlight.


$5.7MPROJECT

330TREES & SHRuBS PlAnTED TO gREEn uP lAnDSCAPE


Over 1,500 Buildings Worked OnTO DATE & COunTing...

Expanding Our Range of CapabilitiesAs one of the leading building maintenance and estate upgrading companies in the public sector arena, we specialise in upgrading and retrofitting, repair and redecoration and reroofing and waterproofing works. As an extension of our services, we also provide facade restoration and home painting services. Since our IPO in July 2013, we have established a new business arm to further expand our range of capabilities to include home renovation and retrofitting works as well as plans in place to start offering handyman services. We are looking for further M&A opportunities to drive inorganic expansion into other new business segments.

cASE STuDY: R&R Works to 30 blocks of flats in Pasir Ris Street 71

cONTrAcT vALuE: $7.9 million

DurATION: 12 months

ScOPE OF wOrk: The blocks were revitalised with a new coat of paint to bring out the vibrancy and liveliness of the estate. Low VOC fluorocarbon coated sunbreakers were installed to increase convenience and comfort to residents at a reduced environmental impact, many plants, shrubs and trees were planted to enhance the landscape with natural shade and an eco-friendly environment. In addition, the energy efficiency of the estate was boosted by replacing outdoor signages with LED ones.

EcO-INNOvATIONS: • 27,043.65 square metres of apron and void deck screed

reconstruction was replaced with self-levelling top-up screed to reduce construction waste and noise

• Low VOC fluorocarbon coating was used for 7281.28 metres of sunbreakers and all claddings

• Planted more than 10,000 trees, shrubs and plants in the precinct

• Close to 75 LED outdoor signages were used in replacement of ordinary ones

Sunbreakers were installed at every household within the project with minimal disruption to occupants.


$7.9MPROJECT

METRES OF SunBREAKERS WERE inSTAllED WiTH lOW VOC FluROCARBOn COATing

7281.28


Joint Chairman & CEO’s Message

Dear Shareholders

On behalf of the Board of Directors of ISOTeam Ltd., it is our pleasure to present the Group’s inaugural annual report for the financial year ended 30 June 2013 (“FY2013”). We want to take this opportunity to thank all investors for their support of our initial public offering (“IPO”) that led to a very successful listing on 12 July 2013.

On the day of our listing, ISOTeam’s shares opened at 30.5 Singapore cents at the commencement of trading. At the close of trading, the Group’s shares closed at 34.5 Singapore cents, a premium of 56.8% over our IPO price of 22.0 Singapore cents and it has continued to do well since. We are grateful for the positive response from the investing public and we assure all shareholders that the Management and Board of Directors will work hard to achieve sustainable and long term growth and progress for the Group.

Business PhilosophiesISOTeam was founded by three former colleagues (David Ng, Anthony Koh, Danny Foo) who became firm friends and went on to become business partners in 1998 when we started the company. Through our philosophy of “CFB – Cheaper, Faster, Better”, a motto that has since become entrenched in our corporate culture and DNA, we grew from our humble

David NgExECuTiVE CHAiRMAn

Anthony kohCEO & ExECuTiVE DiRECTOR


beginnings undertaking minor repainting works from town councils and Management Corporation Strata Title (“MCST”) projects, into a leading player in the building maintenance and estate upgrading industry.

Over the years, we have added another philosophy to our business, and that is to conserve the environment for future generations of Singaporeans. In line with this, we are one of the earliest adopters of eco-conscious methods in our industry and today ISOTeam spearheads eco-driven R&R and A&A solutions for both public and private sector projects in Singapore.

Financial PerformanceFor FY2013, ISOTeam achieved a 100.0% rise in net profit attributable to equity holders to $6.0 million as compared to $3.0 million for the 12 months ended 30 June 2012 (“FY2012”).

This was achieved on the back of a 36.2% year-on-year rise in the Group’s revenue from $35.4 million in FY2012 to $48.2 million in FY2013 underpinned by contribution from NRP projects. These projects included NRP work for the town councils of Marine Parade, Tampines and Chua Chu Kang along with R&R work for the Pasir Ris–Punggol Town Council.

Our FY2013 net profit included a one-off gain of $4.2 million from the disposal of our leasehold property, located at No. 41 Kaki Bukit Place, which we had sold in January 2013. Taking this and the $1.1 million incurred in IPO expenses, the Group recorded an improved profit from operations.

Correspondingly, the Group’s gross profit increased 28.1% year-on-year to $8.2 million and, in spite of higher sub-contracting costs during the year, the Group achieved a healthy gross profit margin of 17.0% in FY2013, compared to 18.1% a year ago.

Based on our post-IPO share capital of 117,595,831 shares, ISOTeam’s Earnings Per Share was boosted to 5.11 Singapore cents for FY2013, from 2.51 Singapore cents a year ago. The Group’s Net Asset Value as at 30 June, based on 86,865,831 shares, improved to 16.84 Singapore cents in 2013 from 13.95 Singapore cents in 2012.

DividendsIn line with our strong performance for the year, our Board is pleased to propose a final cash dividend of 1.00 Singapore cent per share for FY2013, translating into a dividend payout ratio of approximately 19.6% of net profit attributable to equity holders. We believe we are starting out on the right

foot with an attractive dividend soon after listing despite not committing to any payout at IPO.

Although ISOTeam does not have a dividend policy, we will certainly endeavour to drive strong growth for the Group in the hope of establishing a positive dividend payout track record in the years to come.

Exciting DevelopmentsIn August, we announced that ISOTeam had secured three new contracts worth $10.9 million. These include R&R projects for 27 blocks of flats at Ang Mo Kio Avenues 6, 8 and 9; 15 blocks at Bukit Batok West Avenues 2, 4 and 7; and 17 blocks at Pasir Ris Street 11.

In terms of how this has impacted our order book, the next 24 months is looking very robust. As at 14 August 2013, our order book stood at a healthy $81.0 million for projects that will be delivered over the next two years. These include, in addition to the newly won contracts in August, NRP projects at Serangoon Avenues 2 and 3 and at Bukit Batok Avenues 4 and 7, which will be completed in 2013 and 2014 respectively, and also R&R and improvement works to 80 blocks of HDB flats and shops at Hougang, Serangoon North and Paya Lebar estates, which will be completed in 2015.

For FY2013, iSOTeam achieved a 100.0% rise in net profit attributable to equity holders to $6.0 million as compared to $3.0 million for FY2012.


Joint Chairman & CEO’s Message (Cont’d)

In addition, the Group has emerged the lowest tenderer for five projects in Hougang Streets 52 and 61 and Avenue 9; Bedok North Street 2 and Avenue 3; Jurong West Street 91; Tampines Street 91 and Avenues 1 and 5; and, Bukit Batok East Division. We are optimistic about the outcome of these tenders.

The current health of our order book attests to the recurring nature of our business and also ISOTeam’s established reputation and track record in the industry for quality and reliability, which has won us many contracts over the years, even when we were not the lowest bidder.

Not resting on our laurels, we will continue to bid for both public and private sector projects that become open for tender.

Future Plans & Business StrategiesThe IPO has given the Group a new lease of life as we will be using the proceeds to invest in the future growth of the company. We have already started on the plans that were outlined during our IPO.

We have used part of our IPO proceeds to expand our equipment fleet, investing in new gondolas that

has increased our fleet from 150 to 200 units. This will expand our capacity to take on more repainting projects, in view of the buoyant demand for our services from the public sector, as well as to maximise cost efficiency for our customers as there will be no need to rent equipment.

As for our plans to broaden our range of eco-conscious solutions and products business, we continue to market green products such as thermal insulating plaster, slip resistant floor-coating; and nano-titanium dioxide photocatalytic coating, with our partners. At the same time, we are also exploring a possible collaboration with an R&D company to develop and install hydrogen-powered backup generators to power buildings. Using such fuel cells in generators, which produce clean, reliable and more cost-effective energy, would create a very relevant and marketable solution to building owners.

Meanwhile, ISOTeam is working hard to grow our revenue base by developing new business segments, including a private home renovation arm providing home retrofitting and fitting out services to owners of landed properties to meet the various maintenance and property

enhancement needs to their houses. Due to the high cost of properties in Singapore, home owners are very willing to spend money to maintain and upkeep their assets in order to enhance their values and make them more marketable. This generates a steady demand for home retrofitting and fitting out services. With this objective in mind, we have set up a 51%-owned subsidiary, Zara @ ISOTeam Pte. Ltd. (“Zara @ ISOTeam”), in August 2013 to drive this business. We are happy to share that Zara @ ISOTeam is already receiving enquiries from customers who were keen for us to start this new business!

Lastly, we are starting to fulfil our plans to expand our R&R and A&A expertise into other untapped sectors. In addition to being the exclusive applicator of paint works for the public housing sector for SKK and Nippon Paint Singapore, we also became SKK’s exclusive applicator for JTC industrial projects, army camps and HDB industrial projects since August 2013. This, we believe, will open up more opportunities for ISOTeam.


OutlookWe are positive about the next 12 months not only because of our healthy order book but also because of the strong prospects in Singapore’s building and maintenance industry.

Government initiatives to increase the population, build new hawker centres and covered pedestrian linkways to connect various public transport stops to buildings, all bode well for our industry. As an established industry player with a proven track record, we are confident of being able to secure some of these projects.

Government-driven measures to have 80% of all buildings in Singapore to be Green Marked by 2030 will also mean more opportunities for our green solutions business. In addition, many of Singapore’s first housing estates are rapidly aging and this is fuelling increasing demand for renewal.

The unique regulation for external walls of buildings in Singapore to be painted every five years means that there are continual business opportunities for us to tap, presenting ISOTeam with a highly stable and recurring base of revenue.

AppreciationISOTeam would not have been able to achieve the success it enjoys today if not for the support of our long-time business partners and customers. Some of you have been with us from the early days of the company and we are thankful for your continued support over the years. We look forward to many more years of close partnership with you.

To all the employees of ISOTeam, we thank you for your hard work and dedication and your commitment to work together with the Management to build a strong and sustainable future for the Group.

Lastly, a big thank you once again to our shareholders for investing in us. We hope that you will share in the growth of the company for many years to come.

David NgExECuTiVE CHAiRMAn

Anthony kohCEO & ExECuTiVE DiRECTOR

government-driven measures to have 80% of all buildings in Singapore to be green Marked by 2030 will also mean more opportunities for our green solutions business. in addition, many of Singapore’s first housing estates are rapidly aging and this is fuelling increasing demand for renewal.


Board of Directors

David Ng cheng LianExECuTiVE CHAiRMAn AnD FOunDER

Mr Ng heads the Board and provides support to the CEO in the Group’s corporate and strategic development. With a wealth of knowledge gleaned from over 30 years in the building maintenance and estate upgrading industry, he provides support and advice to the Group’s senior management. Prior to founding the Group in 1998, Mr Ng was a director of ISO-Build Corporation Pte Ltd responsible for the safety and equipment aspect of the company. From 1989 to 1994, he was a safety and equipment manager at D&C Builders Pte Ltd in charge of managing all machinery, the safety procedures and protocols of the company. From 1988 to 1989, he was the project executive of Safewell Equipment Pte Ltd where he managed the suspended scaffold rental business. Between 1981 and 1988, he was with Selat Chemicals Pte Ltd as a suspended scaffold technician where he was responsible for the repair and maintenance of site equipment. Mr Ng was awarded a Certificate in Construction Supervision by the Construction Industry Development Board of Singapore in 1994.

Danny Foo Joon LyeDiRECTOR (OPERATiOnS), HEAD OF COMPliAnCE AnD FOunDER

Mr Foo is responsible for matters concerning compliance with workplace and on-site safety rules and regulations for projects undertaken by the Group. With over 20 years of experience in the building maintenance and estate upgrading industry, Mr Foo manages the Group’s manpower planning and procurement of machinery and equipment. He also administers quality assurance functions and ensures compliance with the ISO 9001:2008, ISO 14001:2004 and OHSAS18001:2007 standards. In addition, he oversees the development of the concreting and roofing teams of our Group. Prior to founding the Group in 1998, Mr Foo was a director of ISO-Build Corporation Pte Ltd managing project site work. From 1990 to 1994, he managed site work and coordinated suppliers and sub-contractors for D&C Builders Pte Ltd where he started out as a site supervisor, was promoted to project coordinator and subsequently to project manager. Mr Foo holds a Diploma in Building awarded by Singapore Polytechnic in 1988.

Anthony koh Thong huatCEO, ExECuTiVE DiRECTOR AnD FOunDER

With more than 25 years of experience in the building maintenance and estate upgrading industry, Mr Koh is responsible for the formulation and implementation of the Group’s expansion plans and overall corporate and strategic development. In addition, he oversees the Group’s marketing and tendering strategies, budget and cost controls and resource planning and allocation functions. Prior to founding the Group in 1998, Mr Koh was a director of ISO-Build Corporation Pte Ltd managing the projects and contracts, as well as, controlling the budget and costs of the company. From 1989 to 1994, he managed projects, suppliers and sub-contractors for D&C Builders Pte Ltd, where he moved up the ranks from a site supervisor, then a project coordinator and subsequently to project manager. From 1988 to 1989, he was the site supervisor for Hongplast General Contractor Pte Ltd where he was in charge of supervising workers and coordinating with sub-contractors. Mr Koh holds a Diploma in Building awarded by Singapore Polytechnic in 1988 and a Diploma in Marketing Management awarded by Ngee Ann Polytechnic in 1994.


Ng kheng chooinDEPEnDEnT DiRECTOR

With more than 16 years of experience in investment, finance and accounting fields, Ms Ng was appointed to the Board on 7 June 2013. Ms Ng is currently the chief financial officer of SingHaiyi Group Ltd which she joined in July 2013. She founded VIT Consultancy Private Limited that provides advisory services on mergers and acquisitions and accounting matters. Previously, she represented Sichuan Chuan Wei Group Co., Ltd (“Chuan Wei”), a company incorporated in the People’s Republic of China with related businesses in real estate development, mining of mineral resources, cement, manufacturing of vanadium and steel products and logistics as its general manager of investment (Singapore) since 2012. She was also in charge of the investor relations efforts for Hong Kong listed China Vanadium Titano-Magnetite Mining Company Limited, a related corporation of Chuan Wei for the year 2012 to March 2013. Prior to this, Ms Ng was the chief financial officer of SGX-ST Mainboard listed Sapphire Corporation Limited since 2007 managing the finance and accounting functions and the mergers and acquisition activities. From 2004 to 2006, she was a financial controller with Unigold International Pte Ltd. She started her career with Deloitte & Touche and held the position of audit manager when she left in 2003. Ms Ng holds a Bachelor of Accountancy from Nanyang Technology University and is a member of the Institute of Singapore Chartered Accountants.

Tan Eng AnninDEPEnDEnT DiRECTOR

Appointed to ISOTeam’s Board on 7 June 2013, Mr Tan is currently an executive director and the chief financial officer of SGX-ST Mainboard listed R H Energy Ltd. which he joined in 2006. He has over 18 years of experience in the financial field, having held managerial positions with Yamaichi Merchant Bank, AIB Govett (Asia) Ltd and Standard Chartered Bank from 1994 to 2002. In 2002, Mr Tan joined Technics Oil & Gas Limited as the group financial controller and was subsequently promoted to finance director in 2004 responsible for finance and corporate development. From 2005 to 2006, he was the chief financial officer of Beijing Concept Holdings Pte Ltd where he headed the finance department. Mr Tan is a qualified Chartered Financial Analyst of the Association for Investment Management and Research and a fellow member of the Institute of Singapore Chartered Accountants. He holds a Bachelor of Accountancy (Honours) degree from Nanyang Technological University. Mr Tan currently holds directorships at SGX-ST Mainboard listed RH Energy Ltd. and SGX-ST Catalist listed Hiap Tong Corporation Ltd.

Soh chun BininDEPEnDEnT DiRECTOR

Appointed to ISOTeam’s Board on 7 June 2013, Mr Soh is currently the chief executive officer of Cedar Strategic Holdings Ltd which he joined July 2012. Mr Soh had been a qualified lawyer specialising in capital markets and mergers and acquisitions for more than 12 years. Prior to his current appointment, he was an equity partner in the equity capital markets department of Stamford Law Corporation. He had been one of the early pioneering lawyers at Stamford Law Corporation at its inception in the early 2000s. He has advised on many Singapore and international initial public offerings of corporations and real estate investment trusts, including secondary equity and debt fund raising by such entities. He has also advised on many cross-border transactions and has a broad network spanning countries such as China and Indonesia. Mr Soh has been recognised as a leading lawyer by legal publications such as Chambers and Partners and AsiaLaw. He was a former scholar with a global multinational corporation, and has a Bachelor of Laws (Honours) from the National University of Singapore. Mr Soh currently holds directorships at two SGX-ST Mainboard listed companies, Geo Energy Resources Limited and Triyards Holdings Limited.


Executive Officers

Or Thiam huatPROJECTS DiRECTOR

Mr Or has been the Group’s Projects Director since 1999 and is responsible for the planning and execution of projects undertaken by the Group. In addition, he oversees project cost control and training of site personnel. Mr Or has more than 20 years of experience in the building maintenance and estate upgrading industry and has spearheaded some of the Group’s biggest projects such as the NRP project at Yishun Avenues 6 and 11 and Yishun Ring Road in Nee Soon East Division. Prior to joining the Group, he was the project coordinator of ISO-Build Corporation Pte Ltd from 1995 to 1997; a site coordinator at D&C Builders Pte Ltd between 1993 and 1995 responsible for managing projects, suppliers and sub-contractors; and a site supervisor with Ng Hai Liong Construction Pte Ltd from 1992 to 1993 supervising workers and coordinating sub-contractors. Mr Or holds a Diploma in Civil Engineering awarded by Singapore Polytechnic in 1990.

Lim kim hockCOnTRACTS DiRECTOR

Mr Lim has been the Group’s Contracts Director since 2005 and is responsible for contract administration, project tenders and procurement. He also oversees the Group’s staff training and development. Prior to joining the Group in 2001, he was the quantity surveyor cum project manager of EAC Corporation Pte Ltd from 1994 to 2001, where he was in charge of projects tendering, costs budgeting and supervising projects. Between 1989 and 1994, he was the contracts executive of EM Services Pte Ltd where he was responsible for project management of town council projects. From 1983 to 1989, he was with HDB as a technical officer where he was handling quantity survey and supervision of projects. Mr Lim obtained a Technician Diploma in Building from Singapore Polytechnic in 1981.

chan chung khanggEnERAl MAnAgER

Mr Chan, who joined the Group in 2002 as a project supervisor, has been the Group’s General Manager since 2012 and is in charge of its human resource matters. He is also tasked with the management and coordination of the Group’s operations including business expansion and diversification, planning and policies updates; the management and supervision of its corporate business development plans, corporate and project insurance; the administration of key performance indicators for the Company and its departments whilst monitoring and managing the Company’s overheads. He is also responsible for the application and management of the Group’s government grants. He graduated from Singapore Polytechnic in 1999 with a Diploma in Building and Property Management and Royal Melbourne Institute of Technology in 2008 with a Bachelor of Business (Economics and Finance) with Distinction.

Tan weiCFO

Mr Tan joined ISOTeam as Group Financial Controller in January 2012 and has been the Group’s CFO since January 2013. With more than 14 years’ experience in auditing, accounting and financial consulting, Mr Tan is overall in charge of the Group’s financial matters. Prior to ISOTeam, he provided financial consulting and advisory services to local and overseas corporations as the director of Pinnacle Ridge Ltd (2011-2012) and provided financial consulting services as the project manager of Vineyard Investments Pte Ltd (2008-2010). Before that, he was an auditor at Baker Tilly TFW handling audits for companies seeking IPOs in Singapore (2007-2008), and an accounts executive with Kingsmen Creatives Ltd (2005-2007). Between 1998 and 2005, he worked with various accounting firms in Malaysia and Singapore. Mr Tan holds a Bachelor of Commerce (major in accounting and finance) from La Trobe University of Australia. He is a Certified Practising Accountant with CPA Australia and a member of the Institute of Singapore Chartered Accountants.

From left:chan chung khang, Or Thiam huat, Lim kim hock and Tan wei


Corporate information

BOARD OF DIRECTORSDavid ng Cheng lian (Executive Chairman)

Anthony Koh Thong Huat (Executive Director and Chief Executive Officer)

Danny Foo Joon lye (Executive Director)

Tan Eng Ann (Lead Independent Director)

Soh Chun Bin (Independent Director)

ng Kheng Choo (Independent Director)

AUDIT COMMITTEETan Eng Ann (Chairman)Soh Chun Binng Kheng Choo

REMUNERATION COMMITTEESoh Chun Bin (Chairman)Tan Eng Annng Kheng Choo

NOMINATING COMMITTEEng Kheng Choo (Chairman)Tan Eng AnnSoh Chun Bin

COMPANY SECRETARIESWee Woon Hong, LLB (Hons)Tan Wei, CA Singapore

REGISTERED OFFICE No. 57 Kaki Bukit PlaceEunos TechparkSingapore 416231T: 65 6747 0220F: 65 6747 0110

SHARE REGISTRAR Tricor Barbinder Share Registration Services80 Robinson Road, #02-00Singapore 068898

SPONSORHong leong Finance limited16 Raffles Quay#01-05 Hong Leong BuildingSingapore 048581

AUDITORBaker Tilly TFW llPPublic Accountants and Chartered Accountants15 Beach Road#03-10 Beach CentreSingapore 189677

Partner-in-charge: Ong Kian Guan (Appointed from year ended 30 June 2013)

PRINCIPAL BANKERS united Overseas Bank limited80 Raffles PlaceUOB PlazaSingapore 048624

DBS Bank ltd.12 Marina BoulevardMarina Bay Financial Centre Tower 3Singapore 018982

Oversea-Chinese Banking Corporation limited65 Chulia StreetOCBC CentreSingapore 049513

Standard Chartered Bank8 Marina Boulevard#01-01 Marina Bay Financial Centre Tower 1Singapore 018981

INVESTOR RELATIONS August Consulting101 Thomson Road#30-02 United SquareSingapore 307591T: 65 6733 8873

August ConsultingSilvia HengE: [email protected]

iSOTeam ltd.E: [email protected]

WEBSITEwww.isoteam.com.sg


Corporate Structure(As at 30 August 2013)

Raymond Construction Pte Ltd

100%

A&A; uPgRADing

ISO-TeamCorporation Pte Ltd1

A&A; R&R

ITG-Green TechnologiesPte. Ltd.

ECO-FRiEnDlY SOluTiOnS

ISO-SealWaterproofing Pte. Ltd.

REROOFing AnD WATERPROOFing

TMS Alliance Pte. Ltd.2

R&R

Zara @ ISOTeam Pte. Ltd.

HOME RETROFiTTing AnD FiTTing OuT SERViCES FOR

lAnDED PROPERTiES

1. Exclusive applicator of paint works for SKK under the public housing sector since 1998 and for JTC industrial projects, army camps and HDB industrial projects since August 2013

2. Exclusive applicator for Nippon Paint Singapore under the HDB and town council sectors since 2004

100%

100%

100%

100%

51%


Operating & Financial Review

key Business highlights for FY2013:• Successfully listed on the Catalist of the SGX-ST on

12 July 2013

• Achieved a record revenue and net profit attributable to equity holders of $48.2 million and $6.0 million respectively in FY2013

• Reported an improved profit from operations even after taking into account a significant one-off gain from disposal of a freehold property and one-time IPO-related expenses

• As at 14 August 2013, has a robust order book of $81.0 million and are the lowest tenderer for several projects worth approximately $27.0 million

• Maintained a healthy financial position with $8.5 million in cash and bank balances; translating into a cash per share of 7.20 cents per share

• Set up 51%-owned subsidiary, Zara @ ISOTeam Pte. Ltd., to carry out home retrofitting and fitting out services for landed properties

• Proposed a final cash dividend of 1.00 cent per share for FY2013, equivalent to a dividend payout ratio of approximately 19.6% of net profit attributable to equity holders

BuSINESS OvErvIEw

ISOTeam Ltd. is an established player in the building maintenance and estate upgrading industry in Singapore. Our two core business segments are Repairs & Redecoration (R&R) and Addition & Alteration (A&A).

Refresh Regreen Rejuvenate

Singapore’s unique regulation for external walls of buildings to be painted every five years means continual business opportunities for us, presenting ISOTeam with a highly stable and recurring base of revenue. To date, we have redecorated well over 1,000 blocks of apartment buildings in Singapore and are geared up to take on more.

At the heart of our Green Vision is to minimise resource wastage, encourage reuse and recycling. With 80% of all buildings in Singapore to be Green Marked by 2030, opportunities abound for our green solutions business and ISOTeam is strategically positioned to ride this green trend.

With Singapore’s early housing estates aging rapidly, our government is injecting new life into older estates through renewal programmes and ISOTeam is at the forefront of this initiative. Qualified to tender for projects as large as $40 million, we have secured many NRP and HUP projects and are well-poised to capture even more opportunities in this segment.

Any discrepancies in figures are due to rounding


Operating & Financial Review (Cont’d)

OPErATINg rEvIEwR&R

R&R Projects Completed in FY2013NO LOcATION cuSTOMEr1 Pasir Ris Street 52: 22 blocks (Blocks 500

to 521)Pasir-Ris Punggol

Town Council2 Compassvale Link and Rivervale

Crescent: 17 blocksPasir-Ris Punggol

Town Council3 Sengkang East Road and Compassvale

Road / Drive: 20 blocksPasir-Ris Punggol

Town Council4 Moulmein Division: 24 blocks

Moulmein Division: Improvement works to other blocks

Moulmein-Kallang Town Council

5 51 Upper Bukit Timah Road and 70 Zion Road: Markets and food centres

National Environment

Agency6 Sin Ming Autocare and AMK Techlink Housing &

Development Board

7 Tampines Street 21 and Central 1: 8 blocks

Tampines Town Council

8 163 Kitchener Road: Tai Hoe Hotel Cyclops Engineering Pte

Ltd9 Ngee Ann Polytechnic: Blocks 80, 81 and

83; and lecture theatres 76 to 79 Ngee Ann Polytechnic

10 The Jade The Jade11 60 Ubi Techpark Marcopolo

Property Pte Ltd12 Smith Street: Block 335 Tanjong Pagar

Town Council13 Pasir Ris Street 21: 16 blocks Pasir Ris-Punggol

Town Council14 Pasir Ris Street 41 and Drive 4: 18 blocks Pasir Ris-Punggol

Town Council15 Tampines Street 92 Dou Yee

Technologies Pte Ltd

16 Woodlands Division: 42 blocks Sembawang-Nee Soon Town Council

17 Sin Ming Industrial Estate and

Toa Payoh: 14 blocks

Toa Payoh: Re-roofing to 8 blocks

Bishan-Toa Payoh Town Council

18 Marsiling: 15 blocks

Marsiling and Woodlands Divisions: Reroofing to 9 blocks

Sembawang-Nee Soon Town Council

19 No. 1801 Ang Mo Kio Ave 1: Kingsgrove Condominium

Kingsgrove (The MCST Plan No.

1807)

Ongoing R&R ProjectsNO LOcATION cuSTOMEr1 Pasir Ris Street 11 and 12: 20 blocks Paint Plus

Contract Pte Ltd2 Cheng San-Seletar Division: 5 blocks Ang Mo Kio Town

Council3 Hougang, Serangoon North and Paya

Lebar Estates: 80 blocks of flats/shopsAljunied Hougang

Town Council4 Jalan Bukit Merah and Silat Ave: 11

blocksTanjong Pagar Town Council

5 Bukit Batok West Ave 2, 4 and 7: 15 blocks*

Chua Chu Kang Town Council

6 Pasir Ris Street 11: 17 blocks* Pasir Ris-Punggol Town Council

7 Jalan Klinik, Beo Crescent, Havelock Road, Jalan Bukit Ho Swee and Lower Delta Road: 18 blocks

Tanjong Pagar Town Council

8 Bedok North: 10 blocks East Coast Town Council

9 Toa Payoh Lorong 1 and 2: 15 blocks Bishan-Toa Payoh Town Council

10 Sims Drive / Place, Geylang Bahru and Kallang Bahru: 24 blocks

Blk 49 Sims Place (Kolam Ayer Division): market/food centre


11 Rochor Road and North

Bridge Road: 7 blocks

Kampong Glam: Other blocks


12 Strathmore Ave and Bukit Merah View: 18 blocks


13 Toa Payoh Lorong 5/4/2/1: 15 blocks Bishan-Toa Payoh Town Council

14 Ang Mo Kio Ave 6/8/9 in Yio Chu Kang Division: 27 HDB Residential/Commercial/MSCP blocks*

Ang Mo Kio Town Council

15 Bedok North: 10 blocks East Coast Town Council

16 Balam Road, Circuit Road and Aljunied Crescent (Macpherson Division): 15 blocks

Marine Parade Town Council

17 Veerasamy Road: 6 blocks

Dorset Road: 2 Blocks


18 Simei Street 1, 2 and 4: 20 blocks East Coast Town Council

19 Jalan Tenteram Whampoa Drive: 16 blocks


20 Golden Mile Food Centre and Maxwell Food Centre

National Environment

Agency21 Jalan Bukit Ho Swee, Taman Ho

Swee,Indus Road and Ganges Avenue: 13 blocks


22 Boon Tiong Road,

Jalan Bukit Merah And Kim Tian Road / Place: 12 blocks


* The Group announced that it had secured these three contracts, worth approximately $10.9 million, on 14 August 2013


A&AA&A Projects Completed in FY2013

NO LOcATION cuSTOMEr

1 Bukit Batok Street 34: Blocks 337-346

Hong Kah Town Council

2 Tampines Neighbourhood 9: 38 blocks


Ongoing A&A ProjectsNO LOcATION cuSTOMEr

1 Bukit Batok West Ave 7 and 4:

15 blocks

Chua Chu Kang Town Council

2 Woodlands Street 13: 23 blocks


3 Yishun Ave 6/11 and Yishun

Ring Road: 5 blocks including 2 MSCP


4 Proposed NRP with ELU Works: 26 blocks

Tampines Street 21 and Tampines Central 1: 19 blocks


5 Hougang Street 51, 52 and Ave 8: 33 blocks

Pasir Ris-Punggol Town Council

6 Serangoon Ave 2/3: 19 blocks Marine Parade Town Council

Order Book and Tender BookThe Group has a robust order book of R&R and A&A projects totalling $81.0 million as at 14 August 2013, which it expects to deliver over the next two years. These include the three contracts worth $10.9 million secured in August 2013 to provide R&R works to 59 blocks of HDB flats across Ang Mo Kio, Bukit Batok West and Pasir Ris estates .

On an on-going basis, the Group also actively submits tenders for new projects and have emerged as the lowest tenderer for several projects worth approximately $27.0 million. They include:

• NRP, electrical load upgrading and R&R works at Blks 534 to 566 Hougang Streets 52 and 61 and Avenue 9;

• R&R works at Blks 130 to 139 Bedok North Street 2 and Avenue 3;

• NRP at Blks 933 to 950, 952 and 953 Jurong West Street 91;

• Ancillary contract for NRP to 38 blocks and electrical load upgrading works to 11 blocks at Tampines Street 91, Avenues 1 and 5; and

• R&R works to 14 blocks of flats in Bukit Batok East Division.

r&r works at Ngee Ann PolyBecause of our reputation for quality, reliability and safety, we were repeatedly invited for, and won, tenders involving R&R works at Ngee Ann Polytechnic even when we were not the lowest tenderer. On each occasion we managed to complete the project ahead of schedule causing minimal disruption to the school and incorporated numerous eco-conscious solutions such as heat reflective paint coats.

r&r works at YwcAAs a testament and showcase of our expertise in taking on projects in “live” buildings, we beat out several competitive tenders to work on the Young Women’s Christian Association (YWCA) building within the bustling city centre. The hotel remained open for business and the project was executed with minimal noise and inconvenience to the hotel guests. We used recycled timber ply for walking platforms as an eco-conscious and more sustainable alternative.

+$27min PROJECTS WOn, AS

THE lOWEST TEnDERER



FINANcIAL rEvIEw

Income StatementFY2013($’000)

FY2012($’000)

Change ($’000)

Change (%)

revenue

- R&R 26,381 16,594 9,787 59.0

- A&A 21,770 18,836 2,934 15.6

- Other 96 – 96 NM

Total revenue 48,247 35,430 12,817 36.2

Cost of sales (40,053) (29,012) 11,041 38.1

gross profit

- R&R 4,817 3,088 1,729 56.0

- A&A 3,354 3,330 24 0.7

- Other 23 – 23 NM

Total gross profit 8,194 6,418 1,776 27.7

Gross profit margin 17.0% 18.1% NA -1.1% points

Other income 4,729 1,163 3,566 NM

Expenses

- Marketing and distribution (675) (475) 200 42.1

- General and administrative (5,457) (3,484) 1,973 56.6

- Finance costs (342) (246) 96 39.0

Profit before tax 6,449 3,376 3,073 91.0

Tax expense (440) (422) 18 4.3

Profit and comprehensive income for the year attributable to equity holders 6,009 2,954 3,055 103.4

Net profit margin 12.5% 8.3% NA 4.2% points


revenueThe Group posted total revenue of $48.2 million in FY2013, a year-on-year (“yoy”) increase of $12.8 million or 36.2% compared to $35.4 million in FY2012. The improved revenue was achieved on the back of higher revenue recognition from projects such as NRP for Marine Parade Town Council and Tampines Town Council and new R&R work for Pasir Ris-Punggol Town Council and NRP for Chua Chu Kang Town Council.

The Group reported revenues of $22.1 million in the first half of FY2013 and $26.1 million in the second half of FY2013 compared to $16.0 million and $19.4 million in the corresponding periods in FY2012 respectively. This represented a revenue improvement of 38.1% and 34.5% respectively on a yoy basis and was generally due to the timing of the projects delivered by the Group and the resulting revenue recognition.

On a segmental basis, the R&R and A&A businesses accounted for 54.7% (FY2012: 46.8%) and 45.1% (FY2012: 53.2%) of the Group’s revenue for FY2013 respectively. During the year, revenue generated by R&R rose 59.0% from $16.6 million to $26.4 million, while A&A revenue increased by 16.0% from $18.8 million to $21.8 million. Under the “Other” segment, the Group also reported a revenue of $96,000 from the sale of green products which accounted for 0.2% of FY2013 revenue.

gross Profit and MarginThe Group achieved a gross profit of $8.2 million in FY2013, an increase of 28.1% yoy from $6.4 million in FY2012 due mainly to higher revenue contributed by R&R works. Despite facing higher sub-contracting costs during the year, the Group achieved a healthy gross profit margin of 17.0% in FY2013, compared to 18.1% a year ago.

On a segmental basis, R&R recorded a gross profit of $4.8 million in FY2013, an increase of $1.7 million or 54.8% yoy compared to $3.1 million in FY2012, while A&A recorded a marginal 3.0% rise in gross profit to $3.4 million from $3.3 million in FY2012.

Other IncomeOther income recorded by the Group increased by $3.5 million or 291.7% yoy from $1.2 million in FY2012 to $4.7 million in FY2013. This was mainly due to a one-off gain of $4.2 million from the disposal of the Group’s leasehold property located at No. 41 Kaki Bukit Place, which it sold in January 2013.

Marketing and Distribution ExpensesMarketing and distribution expenses of the Group increased by $0.2 million or 40.0% yoy to $0.7 million in FY2013 from $0.5 million in FY2012. This arose from the Group’s increased project activities which attributed to an increase in the repair and upkeep of motor vehicles from high usage.

general and Administrative ExpensesGeneral and administrative expenses of the Group increased by $2.0 million or 57.1% yoy from $3.5 million in FY2012 to $5.5 million in FY2013. This was mainly attributable to an increase in staff costs of $0.6 million from the recruitment of additional headcount to support the Group’s increased business volume; as well as one-off professional fees and other related expenses of $1.1 million incurred in connection with the Company’s IPO and listing on Catalist of the SGX-ST on 12 July 2013.

Finance costsFinance costs increased by $0.1 million or 50.0% yoy from $0.2 million in FY2012 to $0.3 million in FY2013. This was largely due to higher utilisation of factoring facilities.

Profit Before TaxProfit before tax of the Group increased by $3.0 million or 88.2% yoy from $3.4 million in FY2012 to $6.4 million in FY2013, which includes a gain of $4.2 million from the disposal of a leasehold property and a one-off IPO expenses of $1.1 million. Taking these one-off items into consideration, the Group still recorded an improved profit from operations.

Profit and comprehensive Income For The Year Attributable To Equity holdersThe Group reported a 100.0% yoy rise in net profit attributable to equity holders to $6.0 million for FY2013, compared to $3.0 million in FY2012.

91.0%inCREASE in PROFiT

BEFORE TAx


A&A works in Serangoon Ave 2 & 3This A&A project for the Marine Parade Town Council to an estate encompassing about 20 blocks was worth close to $10 million. We completed the project within six months and incorporated many eco-conscious construction methods including recycling used materials as base hardcore, saving mature trees, using Green Label VOC paint for the entire work and extensive landscaping works promoting green lifestyle and open spaces among others.

r&r works in Sims DriveSlated for completion in February 2014, this R&R project encompass 24 blocks within Sims Drive and Sims Place, Geylang Bahru and Kallang Bahru under the Moulmein-Kallang Town Council. With works needing to be completed in different estates within the same Town Council, this project distinguishes ISOTeam as a trusted partner in logistics-intensive projects.

Statement of Financial Position As at 30 June 2013

$ ‘000As at 30 June 2012

$ ‘000

Non-current assets- Property, plant and equipment 4,441 6,284- Investment securities 400 –

current assets- Due from customers for contract work-in-progress 2,966 3,069- Trade and other receivables 16,572 12,284- Amounts due from a director – 60- Cash and bank balances 8,463 5,474

Total assets 32,842 27,171

Non-current liabilities- Finance lease liabilities 559 671- Deferred tax liabilities 59 59

current liabilities- Due to customers for contract work-in-progress 2,255 1,259- Bank borrowings 4,187 3,765- Trade and other payables 9,630 6,982- Finance lease liabilities 444 479- Amounts due to directors – 634- Tax payables 1,080 1,203

Total liabilities 18,214 15,052

Net assets 14,628 12,119

Share capital 9,651 4,813Accumulated profits 12,315 7,306Merger reserve (7,338) –Total equity 14,628 12,119



AssetsThe Group’s non-current assets decreased by $1.5 million or 23.8% from $6.3 million as at 30 June 2012 to $4.8 million as at 30 June 2013, mainly due to the disposal of a leasehold property with a net carrying value of $2.0 million and offset by the acquisition of new assets of $0.6 million during FY2013 and the purchase of investment securities of $0.4 million.

The increase in current assets of $7.1 million from $20.9 million as at 30 June 2012 to $28.0 million as at 30 June 2013 was attributed mainly to the increase in trade and other receivables of $4.2 million which was in line with the increase in revenue and the increase in cash and bank balances of $3.0 million. This was offset mainly by the decrease in amounts due from customers for contract work-in-progress.

LiabilitiesThe decrease in non-current liabilities of $0.1 million from $0.7 million as at 30 June 2012 to $0.6 million as at 30 June 2013 was attributed to the lower finance lease liabilities.

The increase in current liabilities of $3.3 million from $14.3 million as at 30 June 2012 to $17.6 million as at 30 June 2013 was attributed mainly to the increase in trade and other payables of $2.6 million and the increase in amounts due to customers for contract work-in-progress of $1.0 million. This was partially offset by the decrease in amounts due to the Company’s directors.

The Group had a positive working capital of $10.4 million as at 30 June 2013 as compared to $6.6 million as at 30 June 2012.

consolidated Statement of cashflows

FY2013$ ‘000

FY2012$ ‘000

Net cash (used in)/generated from operating activities (211) 622Net cash (used in)/generated from investing activities 5,510 1,909Net cash (used in)/generated from financing activities (2,520) (743)Cash and cash equivalents at end of financial year 6,907 4,128

The Group generated a net cash of $4.1 million from operating activities before changes in working capital. Net working capital outflow amounted to $3.4 million. This was mainly due to an increase in trade and other receivables by $5.1 million, offset by an increase in trade and other payables by $0.6 million and project work-in-progress of $1.1 million. After payment of income tax of $0.6 million and interest of $0.3 million, the net cash used in operating activities amounted to approximately $0.2 million.

The Group also generated a net cash from investing activities of $5.5 million, which was mainly attributable to proceeds from the disposal of a leasehold property of $6.1 million, offset by the additions of plant and equipment of $0.2 million and purchase of investment securities of $0.4 million.

The $2.5 million in net cash used in financing activities was mainly due to dividend payment of $1.0 million, listing expenses paid of $0.7 million, repayment of directors’ loans and finance lease of $1.0 million, and additional fixed deposit pledged to bank of $0.2 million being offset by net drawdown of bank borrowings of $0.4 million.

In view of the above cash flow movements, the Group reported a healthy cash and cash equivalent position of $6.9 million at 30 June 2013, a net increase of $2.8 million compared to $4.1 million at 30 June 2012.

$6.9mCASH RESOuRCES


Commitment To Corporate Social Responsibility

corporate cultureAt ISOTeam, the staff and management are often heard saying “C-F-B!” as a constant reminder to each other of the Group’s credo. The three letters stand for “Cheaper”, “Faster” and “Better” and it was on the basis of CFB that we were able to build our business into the success it is today.

CFB is still very much alive in our daily routine and it aligns our attitudes and mindsets with our mission to be the leading and preferred partner in total maintenance solutions for buildings and estates. With CFB deeply entrenched in our corporate culture, everyone at ISOTeam strives to do our best for the company and for ourselves. This means that projects are completed on schedule, if not earlier; work carried out is of the highest quality and workmanship; the safety and well-being of the public and our employees are always a top priority; and, we aim to always achieve cost efficiencies for our customers.

Furthermore, we strive to create a conducive work environment where employees feel valued and empowered. We believe that this produces greater accountability and a responsible work attitude among our staff. As the Group’s business grows in breadth and depth, we will continue to strengthen our corporate culture

Our grEEN MILESTONES

2010• Managementmadethedecisiontogo

Green

• EnteredintoaMemorandumofUnderstanding with Ngee Ann Polytechnic to explore the development of a high pressure steam jet that will reduce the

amount of water used to clean a building before the commencement of repainting. The high pressure steam jet also cleans more intensely and thoroughly than water

• ImplementedlowVOCdieselforin-housevehicles and machinery

• ReplacedalllightingsinheadquarterswithLED lamps

• Setup“ITG-GreenTechnologiesPteLtd”to venture into green businesses

to one that focuses and emphasises on our stakeholders who include customers, employees, shareholders and the community.

commitment to the community Our commitment to the community is to achieve the goals of the company without negative consequences to the community. We will support and make contributions of various forms to the community whenever possible.

Singapore Polytechnic Graduates’ Guild Endowment FundThe Singapore Polytechnic holds a special place in the hearts of all three of ISOTeam’s founders – Executive Chairman, David Ng, CEO, Anthony Koh, and Director (Operations), Danny Foo, as they are all active Alumni members.

ISOTeam made a contribution of $20,000 in FY2013 to the Singapore Polytechnic Graduates’ Guild Endowment Fund, which was established in July 2012. The Fund was established in aid of students who needed financial assistance but might have fallen through the cracks of other bursary schemes because their grades did not meet the mark. As all three of our founders came from humble backgrounds, they believed that everybody deserved a chance regardless of the circumstances they were born into.

Other Community Outreach Initiatives The spirit of giving back to society is entrenched in our culture. In FY2013, we donated over $46,000 in funds to various causes.

• Donations to the needy: We made cash donations to various charities and associations such as Siaw Lim Hood Sun Thong and the Long Wah Athletic Association that work with the needy. In addition, we contributed to the Peoples’ Association Nee Soon East Community Club Building Fund for the upgrading of the community club.

• Sponsorship for community events: We sponsor community events organised by various community clubs and town councils such as the Lunar New Year dinner by

Launch of Singapore Polytechnic graduates’ guild (SPgg) Endowment FundAs part of our commitment to giving back to the community, we contributed $20,000 at the launch of the SPGG Endowment Fund in March this year. Having each come from humble backgrounds spurred our three founders to support the fund which was established to aid students who needed financial assistance but might have fallen through the cracks of other schemes because their grades did not meet the mark.


the Bedok Reservoir-Punggol Citizens’ Consultative Community (CCC), National Day celebrations by the Braddell Heights CCC, Racial Harmony Day celebrations by the Punggol Coris Resident Committee (RC), Mothers’ Day lunch celebrations by the Punggol Palmview RC and a charity golf event by the Queenstown Multi-Service Centre.

Our past CSR activities included: • Operation rainbow:

An annual event organised by the Rotary Club Singapore to repaint old folks’ homes. We used our expertise to give the volunteers on-job-training and provided tools and materials for this programme.

• Youth Olympic Mural: We supported this mural initiated to earmark Singapore as the host of the inaugural Summer Youth Olympic Games (YOG) in 2010. The YOG is an international event involving youths in sports activities combining educational and cultural aspects.

• clean and green week: We championed this initiative organised by Ayer Rajah estate to bring awareness and to engage residents in keeping their estate clean and green.

• Youth Sports: We supported a private sports club, “StyloMylo Futsal”, in Malaysia which aims to nurture young football enthusiasts to become tomorrow’s budding stars. The club provides a platform for skills training, tournament participation and training equipment. To date, StyloMylo has secured three futsal tournament championships in Malaysia.

In FY2014, we are planning to work with town councils to explore the possibility of donating paint and painting services to needy families.

commitment to the Environment Green is the corporate colour of ISOTeam and it is also a symbol of our commitment to the environment. We want future generations of Singaporeans to grow up in surroundings and estates that have been built, maintained and upgraded responsibly. It was this belief that led us to become an early adopter of eco-conscious methods and eco-friendly products in our R&R and A&A projects.

Green Procurement PolicyAs part of our Green Procurement Policy, we identify and differentiate products and methods that are greener than prevailing ones and support the purchase of recycled

environmentally preferred products, systems and practices in order to minimise any negative impact that our work may have on the environment.

We take product life-cycle costs into consideration when tendering for projects and not just go for the cheapest materials in order to meet the lowest price criteria. We aim to be a discerning customer when it comes to procuring materials that are most sustainable. Lastly, we engage our customers in our procurement process so as to promote better environmental awareness and encourage their interest in conservation.

Although investing in sustainability may be slightly costly in the short term, we believe that by doing our part for the environment and community, we stand to reap the benefits and gain the confidence of our stakeholders in the long term.

Waste Prevention PracticesAs part of the Group’s Green culture, we reduce, reuse and recycle whenever possible to minimise wastage of office stationery and equipment. We use technology to pass on information and data to minimise wasting paper and we reduce our energy consumption by using energy-saving appliances.

ISOTEAM DONATED

$66,000in FunDS in FY2013

2011• Incubationanddevelopmentofnewgreen

coatings with Pidelite Innovation Centre

• InitiatedtheuseofGreenLabelpaintforHDB public housing R&R tenders

• WonourfirstR&RprojectinTampinesEstate using Green Label Paint

• SentstaffforGreenMarkFacilityManagercourse

• JoinedSingaporeGreenBuildingCouncilas corporate member

• Adoptedournewcompanyslogan–Towards a Greener Future

• Drewuproadmapforgreeningtheinteriorof our office

• LaunchedseriesofgreenservicesforTMSHome Painting

• SetupGreenMovement&InnovationTeam for the purpose of brainstorming and creating better and more innovative Green products and solutions. Products that were a result of the Team’s efforts include thermal plaster, anti-slip coating and hydrogen generators

• AdoptedaGreenicontosymboliseourgreen initiatives


Commitment To Corporate Social Responsibility (Cont’d)

commitment to Employees Our people are our most valuable assets and we are committed to provide the necessary human resource framework that will ensure that they have a rewarding career with us. This means helping them to advance in their personal and professional lives so as achieve a healthy work-life balance. We also provide staff with the use of gym facilities to encourage them to maintain a healthy lifestyle.

Occupational Safety and HealthISOTeam is committed to ensuring the health and safety of our employees and also the public at all our work-sites. We have a 26-point weekly Checklist for Safety and Housekeeping Works to ensure that materials, equipment and machinery are always placed and kept in safe positions to prevent accidents, safe access routes are adequately provided and electrical cables are properly hung. In addition, we have a safety co-ordinator on-site to conduct daily safety checks of the work site as well as ensure that staff are wearing the necessary personal protective gear as a standard operating procedure.

All our workers are suitably insured and as part of staff benefits and to encourage staff retention, health screening is provided to those who are with the company for at least one year.

Over the years, we have taken steps and put in place measures to meet the standards in occupational safety and health set forth by recognised certification bodies. To date, the Group has been awarded the following certifications:

i. In 2007, we were awarded OHSAS 18001:2007 certification for occupational health and safety management system;

ii. In July 2008, we received the “bizSAFE Level 3” award; and

iii. In July 2011, we were awarded “bizSAFE Level Star” award.

2012 2013

Key Performance IndicatorsWe take into account the relative and absolute measures of fines and penalties as one of our key performance indicators. We monitor and keep proper records of such incidents. We disclosed in our IPO Offer Document that the Group had incurred an aggregate of $17,200 in fines up to HY2013. Subsequent to HY2013 and up to the Latest Practicable Date (9 June 2013), we incurred a further $4,000 in fines. We have taken steps to trace the cause of these fines and we are taking preventive actions to avoid future occurrences, and the Group has seen visible improvements. Since the end of FY2013, we have incurred only $1,000 in fines.

Staff TrainingWe place strong emphasis on staff training to maintain a competent workforce to ensure the services rendered by our Group are of a high and consistent standard. To assist our

• ImplementedGreenProcurementPolicyto reinforce our support of the use of eco-friendly designs and products in our projects

• ConvertedalllightingstoLEDandmotionsensor, achieved total wattage savings of 49%

• Implemented“AdoptaPlant”programmefor all office staff

• ObtainedGreenMarkcertificationforouroffice interior at No. 57 Kaki Bukit Place for having scored the requisite points in:

– Energyefficiency

– Waterefficiency

– Sustainablemanagement&operation

– Indoorenvironmentalquality

• UseGreenLabelpaintsforALLprojects secured

• PartnershipwithAdvanceGreenTech for nano-sized TiO2


As the group’s business grows in breadth and depth, we will continue to strengthen

our corporate culture to one that focuses and emphasises on our stakeholders who include

customers, employees, shareholders and the community.

employees in achieving better work quality and higher safety standards, our Group constantly conducts in-house training programmes and enrols our employees in external training courses on construction and workplace safety, construction project management, quality assurance, accounting system and software training, GST seminars and other job related training programmes and seminars.

We also encourage our senior management and managers to attend training that we believe will enhance their planning, analytical, managerial and leadership skills. Our Group is planning to enrol our project managers for BCA courses to be certified as BCA Green Mark Professionals.

Efficiency and Effectiveness DriveIn line with the Government’s recent initiative to drive productivity, ISOTeam leveraged on the Productivity Innovation Credit (PIC) to acquire/adopt technology and equipment to help boost our productivity on operational processes. This included the implementation of a workers’ online timecard system that enabled the company to almost halve the time taken to track manhours clocked by each worker for each project. Through this system, ISOTeam is able to accurately clock in and clock out workers’ working hours anytime and anyplace, eliminate down time, reduce lapse time and conduct salary computations quickly and easily.

Through PIC, ISOTeam was able to invest in IT software and hardware. Thanks to the time savings and efficiency achieved by these IT systems, our employees now have more flexibility to manage their private lives and office work, improving their work- life balance, hence creating a happier workforce for the Group.

To make our workforce more effective and skillful, ISOTeam also tapped on PIC to improve the skill set, productivity, safety and leadership of its workers through training. Such courses included SCAL Courses, First Aider Courses, Effective Personal Productivity Courses, Green Mark Manager Courses, Gondola Riggerman Courses, and Excavator Operator Courses. The Group also engaged an independent consultant to establish a KPI system throughout the organisation to streamline and improve operational processes and performance.

commitment to customersTo ensure the quality of our projects, our Group takes steps to make sure that our sub-contractors have relevant experience and proven track records. We conduct regular inspections at each project phase and maintain a record at the site office, which is further endorsed by a resident technical officer, to ensure that each stage is constructed according to the project specifications and the prescribed methods and procedures.

As part of our efforts to monitor quality and service levels, we have established and aim to achieve the following quality objectives, which are consistent with our value statements

i. To provide value for money products and services through competitive pricing and competent execution of work;

ii. To achieve high quality work through stringent process controls and continuous improvements by investing in training and upgrading of our workforce;

iii. To meet project deadlines through sound project management by promoting open communication and teamwork; and

iv. To exceed customers’ expectations and to treat all individuals with respect, courtesy and honesty.

As a testament to our quality commitment, since 2005, our quality management system has been certified by Certification International (S) Pte Ltd as having satisfied ISO 9001:2008 in respect of general building construction while our health and safety management system has been certified as having satisfied OHSAS 18001:2007 in respect of general building construction and provision of suspended scaffolding works. In 2013, we received the ISO 14001:2004 certification for our environmental management system. This is a testimony to our commitment in delivering high quality eco-conscious work to our customers.

commitment to ShareholdersISOTeam is committed to providing the investment community with transparent, timely and accurate information. Our aim is to keep our existing and potential investors updated on the Group’s performance and strategic initiatives, in order to help them evaluate the Group and make informed investment decisions. Since our listing in July 2013, we:

i. Post all our corporate announcements, press releases and presentation slides on the Singapore Exchange’s SGXNET and our website (www.isoteam.com.sg) simultaneously;

ii. Maintain a dedicated investor relations section within our corporate website with easy access to up-to-date information;

iii. Share our investor relations contact ([email protected]) on our website; and

iv. Investors can also sign up for an e-mail alert service which informs them whenever an announcement is posted on the website.

We endeavour to engage in two-way communication with the investment community via face-to-face briefings, phone calls or emails. We plan to conduct regular results briefings with analysts and media jointly.


ISOTeam is an early adopter of Green products and methodologies and we have been integrating eco-conscious approaches in the projects we undertake since 2010. This gives us an edge when tendering for projects that are required to meet the Building & Construction Authority’s Green Mark Standards.

Over the years, we have successfully collaborated with various R&D partners to develop and commercialise Green products. The Group is the ideal platform for principals or inventors who want to test-bed and subsequently launch their products and we continue to seek out strategic alliances in this area.

Our grEEN PrODucTS

AnTi-SliP ClEAR COATing

BENEFITS: This product has excellent abrasive properties that significantly reduce the chances of slipping, making it an ideal product to improve the safety of high-risk groups such as the elderly or children.

The coating has an extended usage life, is impact resistant, non-flammable and has low VOC (Volatile Organic Compounds), thus making it safe for use both indoors as well as outdoors. Its transparent finishing also ensures that existing flooring is not damaged.

We developed this product in collaboration with Pidilite Innovation Centre in Singapore.

nAnO-TiTAniuM DiOxiDE (TiO2)PHOTOCATAlYTiC COATing (OR SMART COAT)

BENEFITS: This is an advanced technology water-based nano-sized TiO2 photocatalytic coating for air purification and environmental protection. When applied to both interior and exterior surfaces of buildings, it reacts to both ultra-violet rays as well as visible light to kill bacteria and viruses (such as H1N5, SARS, MRSA and HFMD), eliminate bad odours and even decompose VOCs.

When applied externally onto building facades, its excellent decomposition power breaks down organic matters such as grease and pollutants. Its hydrophilic properties also make coated surfaces easier to be cleaned by rain.

The product is particularly relevant in buildings such as childcare centres and hospitals where there is higher risk of bacteria build up. Once applied, the product is effective for a period of about five years. Smart Coat was developed by Universiti Sains Malaysia.

THERMAl PlASTER

BENEFITS: This product is made from a range of recycled vacuum encapsulated siliceous earth composite bounded by a natural hydraulic binder. Its unique micro-structure allows for breathability whilst maintaining continual self-healing. This product boasts significant advantages over existing conventional cement-sand plaster as it is lightweight, non-combustible, non-toxic, contains zero VOC, and does not require plasticiser to make it more elastic, thereby eliminating plastic shrinkage cracks (or cobweb cracks). Most importantly, thermal plaster insulates the building, keeping the interior cool despite Singapore’s hot weather and high humidity. It is an ideal solution for roof and open terrace insulation, as well as a lightweight floor levelling up material.

COMPOSiTE TiMBER DECKing

BENEFITS: This environmentally friendly product is made of recycled bamboo and it is increasingly used in place of natural timber for decking because of its low maintenance and durability. It is resistant to termites, mould, UV rays and rot and it does not splinter, warp or twist. Its durability reduces the need for replacement and maintenance work. It is available in various colours and textures, and comes in 1.8m, or longer, planks.

green ProductShowcase

cOLLABOrATINg FOr A grEENEr FuTurE


Corporate Governance Report

The Board of Directors (the “Board” or the “Directors”) of ISOTeam Ltd. (the “Company”) is committed to maintain a high standard of corporate governance within the Company and its subsidiaries (the “Group”) to ensure greater transparency and to protect the interests of the Company’s shareholders.

The Company will continue to enhance its corporate governance practices appropriate to the conduct and growth of its business and to review such practices from time to time to ensure compliance with the requirements of Section B: Rules of Catalist of the Listing Manual of the Singapore Exchange Securities Trading Limited (“SGX-ST”) (“Catalist Rules”). This section outlines the main corporate governance practices and procedures adopted by the Company with reference made to each of the principles of the Code of Corporate Governance 2012 (the “Code”).

BOARD MATTERS

The Board’s Conduct of its Affairs

Principle 1: Every company should be headed by an effective board to lead and control the company. The board is collectively responsible for the long-term success of the company. The board works with management to achieve this objective and management remains accountable to the board.

The Board is entrusted with the responsibility for the overall management of the business and corporate affairs of the Group and to protect and enhance long-term shareholders’ value.

Matters which specifically require the Board’s decision or approval are those involving:

• corporatestrategyandbusinessplans;• majorfundingdecisionsoftheGroup;• nominationsofDirectorsforappointmenttotheBoard;• announcementofhalf-yearandfull-yearresults,theannualreportandfinancialstatements;• materialacquisitionsanddisposalofassets/investments;and• allmattersofstrategicimportance.

Boardcommittees,namelytheAuditCommittee(“AC”),NominatingCommittee(“NC”)andRemunerationCommittee(“RC”),havebeen established to assist the Board in the discharge of specific responsibilities. These committees are chaired by independent Directors and function within clearly defined terms of reference and operating procedures.

The Board meets at least twice a year at regular intervals. Telephonic attendance at Board meetings is allowed under the Company’s ArticlesofAssociation.TheBoardandBoardcommitteesmayalsomakedecisionsbywayofcirculatingresolutions.BesidesthescheduledBoardmeetings,theBoardmeetsonanadhocbasisaswarrantedbyparticularcircumstances.

NewlyappointedDirectorsreceiveappropriateorientationtohelpthemgetfamiliarisedwiththebusinessandorganisationalstructureoftheGroup.TogetabetterunderstandingoftheGroup’sbusiness,thenewlyappointedDirectorsarealsogiventheopportunity to visit the Group’s operational facilities and meet with the management of the Group (the “Management”). The Company encourages Directors to attend training courses organised by the Singapore Institute of Directors or other training institutions in connection with their duties.

The Company was admitted to Catalist on 12 July 2013 which was after the financial year under review. There was no meeting of Board or Board committees being held during the financial year under review.

ISOTEAM LTD. |AnnualReport2013 29


Board Composition and Guidance

Principle 2: There should be a strong and independent element on the board, which is able to exercise objective judgment on corporate affairs independently, in particular, from management and 10% shareholders. No individual or small group of individuals should be allowed to dominate the board’s decision making.

The Board currently comprises three Executive Directors and three Independent Directors as follows:

Executive DirectorsMrNgChengLian(ExecutiveChairman)Mr Koh Thong Huat (Chief Executive Officer)Mr Foo Joon Lye (Director (Operations))

Independent DirectorsMrTanEngAnnMr Soh Chun BinMsNgKhengChoo

TheindependenceofeachDirectorissubjecttoannualreviewbytheNC.TheNCadoptsthedefinitionintheCodeastowhatconstitutesanIndependentDirectorinitsreviewtoensurethattheBoardconsistsofpersonswho,together,willprovidecorecompetenciesnecessarytomeettheCompany’sobjectives.Inthisregard,theNCisoftheviewthatMrTanEngAnn,MrSohChunBinandMsNgKhengChooareindependent.

AshalfoftheBoardis independent,theNCissatisfiedthattheBoardhassubstantial independentelementstoensurethatobjectivejudgmentisexercisedoncorporateaffairs.

TheBoardthroughtheNChasexamineditssizeandcompositionandisoftheviewthatitisanappropriatesizeforeffectivedecision-making,takingintoaccountthescopeandnatureoftheoperationsoftheCompany.TheNCisoftheviewthatnoindividualorsmallgroupofindividualsdominatestheBoard’sdecision-makingprocess.

There isadequaterelevantcompetenceonthepartof theDirectors,who,asagroup,carryspecialistbackgrounds in law,accounting,finance,businessandmanagementandstrategicplanning.

Chairman and Chief Executive Officer

Principle 3: There should be a clear division of responsibilities between the leadership of the board and the executives responsible for managing the company’s business. No one individual represents a considerable concentration of power.

The Company adopts a dual leadership structure whereby the roles of Chairman and Chief Executive Officer (“CEO”) are separate toensureacleardivisionofresponsibilities,increasedaccountabilityandgreatercapacityoftheBoardforindependentdecision-making.TheChairmanisnotrelatedtotheCEO.

TheExecutiveChairman,MrNgChengLian,isresponsiblefortheleadershipoftheBoard.HesupportstheCEOintheimplementationofthecorporateandstrategicdevelopmentoftheGroup.TheCEO,MrKohThongHuat,formulatesandimplementstheGroup’sexpansion plans and the overall corporate and strategic development of the Group.

AstheChairmanoftheBoardispartofthemanagementteamandnotanIndependentDirector,MrTanEngAnnwhoistheChairmanofAChasbeenappointedastheleadIndependentDirector.InaccordancewiththeCode,MrTanEngAnnisavailabletoshareholderswhentheyhaveconcernswherecontactthroughthenormalchannelsoftheChairmanandCEO,ExecutiveDirectorsand/orChiefFinancialOfficerhasfailedtoresolveorforwhichsuchcontactisinappropriate.

ISOTEAM LTD. |AnnualReport201330


Board Membership

Principle 4: There should be a formal and transparent process for the appointment and re-appointment of directors to the board.

TheNCcomprisesthreeIndependentDirectors,namelyMsNgKhengChoo,MrTanEngAnnandMrSohChunBin.TheChairmanoftheNCisMsNgKhengChoo.TheNChaswrittentermsofreferencethatdescribetheresponsibilitiesofitsmembers.

TheprincipalfunctionsoftheNCareasfollows:

(a) toreviewandrecommendtotheBoardallBoardappointmentsandre-appointments;

(b) todetermine,onanannualbasis,ifaDirectorisindependent,guidedbytheindependentguidelinescontainedintheCode;

(c) todecidewhetherornotaDirectorisabletoandhasbeenadequatelycarryingouthisorherdutiesasaDirector;and

(d) to assess the effectiveness of the Board as a whole and the contribution of each Director to the effectiveness of the Board.

The Board has reviewed the independence of each Director in accordance with the Code’s definition of independence and is satisfied that half of the Board comprised Independent Directors.

IntheeventthatavacancyontheBoardarises,theNCwillreviewtheexpertise,skillsandattributesoftheBoard,identifyitsneeds and shortlist candidates with the appropriate profiles for nomination. The search may be through search companies or thebusinessnetworkoftheBoard.InterviewsshallbeconductedbytheNCandsuitablecandidatesarerecommendedtotheBoard for consideration.

TheArticlesofAssociationoftheCompanyprovidethatatleastone-thirdoftheDirectorsshallretirefromofficebyrotationateachAnnualGeneralMeeting(“AGM”)oftheCompanyand,allDirectorsshallretirefromofficeatleastonceeverythreeyears.AretiringDirectoriseligibleforre-electionbytheshareholdersoftheCompanyattheAGM.

TheNCassessesandrecommendstotheBoardwhetherretiringDirectorsaresuitableforre-election(savedthatamembershallabstainfromrecommendinghisownre-election).PursuanttoArticle117oftheCompany’sArticlesofAssociation,alltheDirectorsarerequiredtoretirefromofficeattheforthcomingAGM.TheNChasrecommendedthere-electionofalltheDirectorsattheforthcomingAGMandtheBoardhasacceptedtheNC’srecommendation.

The dates of appointment and directorships of the Directors in other listed companies are set out below:

Name of Director Date of Appointment Directorships in Other Listed CompaniesPresent Last Three Years

NgChengLian 12 December 2012 Nil NilKoh Thong Huat 12 December 2012 Nil NilFoo Joon Lye 12 December 2012 Nil NilTanEngAnn 7June2013 •HiapTongCorporationLtd.

•RHEnergyLtd.Nil

Soh Chun Bin 7June2013 •GeoEnergyResourcesLimited•TriyardsHoldingsLimited

•AsiaFashionHoldingsLimited

NgKhengChoo 7June2013 Nil Nil

NotwithstandingthatsomeoftheDirectorshavemultipleboardrepresentations,theBoardissatisfiedthateachDirectorisabletoandhasbeenadequatelycarryingouthisorherdutiesasaDirectoroftheCompany.Assuch,theBoarddoesnotproposetoset the maximum number of listed company board representations which Directors may hold until such need arises.

Key information regarding the Directors and information on shareholdings in the Company held by each Director are set out in the “Board of Directors” and “Directors’ Report” sections of this annual report respectively.



Board Performance

Principle 5: There should be a formal assessment of the effectiveness of the board as a whole and its board committees and the contribution by each director to the effectiveness of the board.

TheNCdecideshowtheBoard’sperformanceistobeevaluatedandproposesobjectiveperformancecriteria,subjecttotheBoard’sapproval,whichaddresshowtheDirectorshaveenhancedlong-termshareholders’value.TheBoardhasalsoimplementedaprocesstobecarriedoutbytheNCforassessingtheeffectivenessoftheBoardasawholeandtheBoardcommitteesandforassessingthecontributionfromeachindividualDirectortotheeffectivenessoftheBoard.EachmemberoftheNCshallabstainfrom voting on any resolution in respect of the assessment of his or her performance or re-nomination as a Director.

Access to Information

Principle 6: In order to fulfil their responsibilities, directors should be provided with complete, adequate and timely information prior to board meetings and on an on-going basis so as to enable them to make informed decisions to discharge their duties and responsibilities.

DirectorsarefurnishedwithinformationfromtheManagementabouttheGroupaswellastherelevantbackgroundinformationrelating to the business to be discussed at Board meetings. The Directors are also provided with the contact details of the Senior Management and Company Secretaries to facilitate separate and independent access.

TheCompanySecretariesattendallBoardmeetings.TogetherwiththeManagement,theCompanySecretariesareresponsibleforensuringthatappropriateproceduresarefollowedandthattherequirementsoftheCompaniesAct,Chapter50,andtheprovisionsintheCatalistRulesarecompliedwith.EachDirectorhastherighttoseekindependentlegalandotherprofessionaladvice,attheCompany’sexpense,concerninganyaspectoftheGroup’soperationsorundertakingsinordertofulfilhisorherduties and responsibilities as Director.

REMUNERATION MATTERS

Procedures for Developing Remuneration Policies

Principle 7: There should be a formal and transparent procedure for developing policy on executive remuneration and for fixing the remuneration packages of individual directors. No director should be involved in deciding his or her own remuneration.

TheRCcomprisesthreeIndependentDirectors,namelyMrSohChunBin,MrTanEngAnnandMsNgKhengChoo.TheChairmanof the RC is Mr Soh Chun Bin. The RC has written terms of reference that describe the responsibilities of its members.

The principal functions of the RC are as follows:

(a) toreviewandrecommendtotheBoardageneralframeworkofremunerationfortheBoardandkeymanagementpersonnelandthespecificremunerationpackagesandtermsofemployment(whereapplicable)foreachDirector,keymanagementpersonnelandemployeesrelatedtotheDirectorsandsubstantialshareholdersoftheCompany;

(b) to function as the committee referred to in the ISOTeam Performance Share Plan (the “ISOTeam PSP”) and shall have all thepowersassetoutintheISOTeamPSP;and

(c) toreviewallaspectsofremuneration,includingbutnotlimitedtoDirectors’fees,salaries,allowances,bonuses,options,share-basedincentivesandawards,andbenefits-in-kind.

EachmemberoftheRCshallabstainfromvotingonanyresolutionsinrespectofhisorherremunerationpackage.



Level and Mix of Remuneration

Principle 8: The level and structure of remuneration should be aligned with the long-term interest and risk policies of the company, and should be appropriate to attract, retain and motivate (a) the directors to provide good stewardship of the company, (b) key management personnel to successfully manage the company. However, companies should avoid paying more than is necessary for this purpose.

TheCompanyhasaremunerationpolicyfortheExecutiveDirectors,whichcomprisesafixedcomponentandavariablecomponent.Thefixedandvariablecomponentsareintheformofabasesalary,allowancesandavariablebonus,whichtakesintoaccounttheperformanceoftheCompanyandtheperformanceoftheindividualExecutiveDirectoraswellasthemarketrates.

MrNgChengLian(ExecutiveChairman),MrKohThongHuat(CEO)andMrFooJoonLye(Director(Operations))arepaidbasedontheirrespectiveserviceagreementswiththeCompanyasdisclosedintheCompany’sOfferDocumentdated5July2013.Each service agreement is for an initial period of three years with effect from 12 July 2013. These service agreements provide for termination by either party upon giving not less than six months’ notice in writing.

TheIndependentDirectorsdonothaveserviceagreementswiththeCompany.TheyarepaidfixedDirectors’fees,whicharedeterminedbytheBoard,appropriatetotheleveloftheircontributions,takingintoaccountfactorssuchastheeffortandtimespentandtheresponsibilitiesofeachIndependentDirector.TheDirectors’feesaresubjecttoapprovalbyshareholdersateachAGM.Exceptasdisclosed,theIndependentDirectorsdonotreceiveanyotherremunerationfromtheCompany.

TheCompanyhasadoptedaperformanceshareplanknownas“ISOTeamPerformanceSharePlan”inJune2013.TheISOTeamPerformance Share Plan is administered by the RC.

Disclosure on Remuneration

Principle 9: Each company should provide clear disclosure of its remuneration policies, level and mix of remuneration, and the procedure for setting remuneration in the company’s annual report. It should provide disclosure in relation to its remuneration policies to enable investors to understand the link between remuneration paid to directors and key management personnel, and performance.

TheBoardsupportsandisawareoftheneedfortransparency.However,theBoardisoftheviewthatfulldisclosureofthespecificremunerationofeachindividualDirectorandkeymanagementpersonneloftheGroupisnotinthebestinterestsoftheCompany,havingtakenintoconsiderationtheverysensitivenatureofthematter,therelativesizeoftheGroup,thecompetitivebusinessenvironment the Group operates in and the irrevocable negative impact such disclosure would have on the Group.

Abreakdown,showingthelevelandmixofeachDirector’sremunerationforthefinancialyearended30June2013isasfollows:

Remuneration Band and Name of Director Fee# Salary* Bonus Allowances TotalBelow $250,000 % % % % %NgChengLian – 89 11 – 100Koh Thong Huat – 89 11 – 100Foo Joon Lye – 89 11 – 100TanEngAnn 100 – – – 100Soh Chun Bin 100 – – – 100NgKhengChoo 100 – – – 100

Notes:# ThesefeesaresubjecttotheapprovaloftheshareholdersattheforthcomingAGM.* These amounts are inclusive of employer’s CPF contribution.



Abreakdown,showingthelevelandmixofkeyexecutivesforthefinancialyearended30June2013isasfollows:

Remuneration Band and Name of Executive## Salary* Bonus Allowances TotalBelow $250,000 % % % %Or Thiam Huat 81 11 8 100LimKimHock 81 10 9 100Chan Chung Khang 87 13 – 100Tan Wei 90 10 – 100

Notes:## Duringthefinancialyearunderreview,therewereonlyfourkeyexecutives.* These amounts are inclusive of employer’s CPF contribution.

NoneofthecurrentemployeesarerelatedtotheDirectors.

TheCompanyhasadoptedaperformanceshareplanknownas“ISOTeamPerformanceSharePlan”.Pleaserefertothe“Directors’Report” section of this annual report for more information of such plan.

ACCOUNTABILITY AND AUDIT

Accountability

Principle 10: The board should present a balanced and understandable assessment of the company’s performance, position and prospects.

Inpresentingtheannualfinancialstatementsandinterimannouncementstoshareholders,itistheaimoftheBoardtoprovidetheshareholderswithabalancedassessmentoftheGroup’sperformance,positionandprospects.TheBoardiscommittedtoprovide shareholders with timely and accurate financial statements.

Risk Management and Internal Controls

Principle 11: The board is responsible for the governance of risk. The board should ensure that management maintains a sound system of risk management and internal controls to safeguard shareholders’ interests and the company’s assets, and should determine the nature and extent of the significant risks which the board is willing to take in achieving its strategic objectives.

Duringthefinancialyearunderreview,theCompanyhasappointedanexternalprofessionalfirm,NexiaTSRiskAdvisoryPteLtd to review, recommendandsubsequent rectification follow-upon theareas inprojectmanagement, tendering,accountsreceivable, procurement, sub-contracting and accounts payable, payroll and personal, cash management and fixed assetsmanagement for the purpose of the Company’s listing exercise.

BasedontheinternalcontrolsestablishedandmaintainedbytheGroup,workperformedbytheinternalandexternalauditors,andreviewsperformedbytheManagementandtheBoard,theBoard,withtheconcurrenceoftheAC,isoftheopinionthattheinternalcontrolsoftheGroupareadequateinaddressingthefinancial,operationalandcompliancerisksoftheGroup.TheBoardandtheACnotedthatallinternalcontrolscontaininherentlimitationsandnosystemofinternalcontrolscouldprovideabsoluteassuranceagainsttheoccurrenceofmaterialerrors,poorjudgmentindecisionmaking,humanerror,losses,fraudorotherirregularities.TheBoardwillcontinueitsriskassessmentprocess,whichisanon-goingprocess,withaviewtoimprovetheCompany’s internal controls system.

The Company has not conducted a review of its information technology controls for the financial year under review as it had committed its time and resources substantially to the preparation for the Company’s listing exercise.

The Board has received assurance from the CEO and the CFO (a) that the financial records have been properly maintained and thefinancialstatementsgivetrueandfairviewoftheCompany’soperationsandfinances;and(b)oftheeffectivenessoftheCompany’sriskmanagementandinternalcontrolsystems.



Audit Committee

Principle 12: The board should establish an audit committee with written terms of reference which clearly set out its authority and duties.

TheACcomprisesthreeIndependentDirectors,namelyMrTanEngAnn,MrSohChunBinandMsNgKhengChoo.TheChairmanoftheACisMrTanEngAnn.TheAChaswrittentermsofreferencethatdescribetheresponsibilitiesofitsmembers.TheBoardisoftheviewthattheAChasthenecessaryexperienceandexpertiserequiredtodischargeitsduties.

TheACwillmeetperiodicallytodiscuss,inter alia,thefollowing:

(a) toreviewtheauditplansoftheexternalauditorandinternalauditor,includingtheresultsoftheexternalauditorandinternalauditor’sreviewandevaluationofthesystemofinternalcontrolsoftheGroup;

(b) toreviewtheannualconsolidatedfinancialstatementsandtheexternalauditor’sreportonthosefinancialstatements,anddiscussanysignificantadjustments,majorriskareas,changesinaccountingpolicies,compliancewithSingaporeFinancialReportingStandards,concernsandissuesarisingfromtheirauditsincludinganymatterswhichtheexternalauditormaywishtodiscussintheabsenceoftheManagement,wherenecessary,beforesubmissiontotheBoardforapproval;

(c) to review the periodic consolidated financial statements comprising the statement of comprehensive income and the statement of financial position and such other information required by the Catalist Rules before submission to the Board forapproval;

(d) toreviewanddiscusswiththeexternalauditorandinternalauditor,ifanysuspectedfraud,irregularityorinfringementofanyrelevantlaws,rulesandregulations,whichhasorislikelytohaveamaterialimpactontheGroup’soperatingresultsorfinancialpositionandtheManagement’sresponse;

(e) toreviewtheco-operationgivenbytheManagementtotheexternalauditor;

(f) toconsidertheappointmentorre-appointmentoftheexternalauditor;

(g) toreviewandratifyanyinterestedpersontransactionsfallingwithinthescopeofChapter9oftheCatalistRules;

(h) toreviewanypotentialconflictsofinterests(ifany);

(i) toreviewtheproceduresbywhichemployeesoftheGroupmay,inconfidence,reporttotheChairmanoftheAC,possibleimproprieties in matters of financial reporting or other matters and ensure that there are arrangements in place for independent investigationandfollow-upactionsthereto;

(j) toundertakesuchotherreviewsandprojectsasmayberequestedbytheBoard,andreporttotheBoarditsfindingsfromtimetotimeonmattersarisingandrequiringtheattentionoftheAC;and

(k) toundertakegenerallysuchother functionsanddutiesasmayberequiredby lawortheCatalistRules,andbysuchamendments made thereto from time to time.

TheAChadmetwiththeexternalauditor,withoutthepresenceoftheManagementtoreviewtheadequacyofauditarrangements,withemphasisonthescopeandqualityoftheiraudit,andtheindependence,objectivityandobservationsoftheexternalauditor.

TheACconstantlybearsinmindtheneedtomaintainabalancebetweentheindependenceandobjectivityoftheexternalauditorandtheworkcarriedoutbytheexternalauditorbasedonvalueformoneyconsideration.Duringthefinancialyearunderreview,theaggregateamountoffeespaidorpayabletotheexternalauditorfortheauditandnon-auditservicesisreflectedinNote7to the audited financial statements.

TheACconfirmedthatithasconductedanannualreviewoftheindependenceofexternalauditorandthetotalfeesfornon-auditcomparedwithauditservicestosatisfyitselfthatthenatureandvolumeofnon-auditserviceswillnotprejudicetheindependenceandobjectivityoftheexternalauditor.IntheAC’sopinion,BakerTillyTFWLLPissuitableforre-appointmentandithasaccordinglyrecommendedtotheBoardthatBakerTillyTFWLLPbenominatedforre-appointmentastheexternalauditoroftheCompanyattheforthcomingAGM.



TheCompanyhascompliedwithRules712and715oftheCatalistRulesinrelationtoitsexternalauditor.

TheAChasimplementedawhistleblowingpolicywherebythestaffoftheGroupandexternalpartiesmay,inconfidence,raiseconcerns about possible improprieties in matters of financial reporting or other matters which they become aware.

ItistheCompany‘spracticefortheexternalauditortopresenttotheACitsauditplanandwithupdatesrelatingtoanychangeofaccountingstandardsimpactingonthefinancialstatementsbeforeanauditcommences.Duringthefinancialyearunderreview,the changes in accounting standards did not have any impact on the Group’s financial statements.

Internal Audit

Principle 13: The company should establish an effective internal audit function that is adequately resourced and independent of the activities it audits.

TheACisawareoftheneedtoestablishasystemofinternalcontrolswithintheGrouptosafeguardtheshareholders’interestsandtheGroup’sassets,andtomanagerisks.Thesystemisintendedtoprovidereasonablebutnotabsoluteassuranceagainstmaterialmisstatementsorloss,andtosafeguardassetsandensuremaintenanceofproperaccountingrecords,reliabilityoffinancialinformation,compliancewithappropriatelegislation,regulationandbestpractices,andtheidentificationandcontainmentofbusinessrisks.

ThesizeoftheoperationsoftheGroupdoesnotwarranttheGrouphavinganin-houseinternalauditfunctionatthisjuncture.Duringthefinancialyearunderreview,theCompanyhadengagedanexternalprofessionalfirm,NexiaTSRiskAdvisoryPteLtdtoreview,recommendandsubsequentrectificationfollow-upontheareasinprojectmanagement,tendering,accountsreceivable,procurement,sub-contractingandaccountspayable,payrollandpersonal,cashmanagementandfixedassetsmanagementfor the purpose of the Company’s listing exercise. Findings and internal auditor’s recommendations on areas of improvement werereportedtotheACandfortheManagement’simplementation.Nosignificantcontrolissueswerereportedbytheinternalauditorforthereportingyear.Movingforward,theCompanywillcontinuetoengageanexternalriskadvisortoreviewitssystemof internal controls.

SHAREHOLDER RIGHTS AND RESPONSIBILITIES

Shareholder Rights

Principle 14: Companies should treat all shareholders fairly and equitably, and should recognise, protect and facilitate the exercise of shareholders’ rights, and continually review and update such governance arrangements.

The Group’s corporate governance practices promote the fair and equitable treatment of all shareholders. To facilitate shareholders’ ownershiprights,theGroupensuresthatallmaterialinformationisdisclosedonacomprehensive,accurateandtimelybasisviaSGXNET.TheGrouprecognisesthatthereleaseoftimelyandrelevantinformationiscentraltogoodcorporategovernanceandenablesshareholderstomakeinformeddecisionsinrespectoftheirinvestmentsintheCompany.

AllshareholdersareentitledtoattendtheAGMandareaffordedtheopportunitytoparticipateeffectively intheAGM.TheArticlesofAssociationoftheCompanyallowashareholdertoappointuptotwoproxiestoattendandvoteintheshareholder’splaceattheAGM.

Communication with Shareholders

Principle 15: Companies should actively engage their shareholders and put in place an investor relations policy to promote regular, effective and fair communication with shareholders.

The Company is committed to maintain and improve its level of corporate transparency of financial results and other pertinent information. In line with the continuous disclosure obligations of the Company pursuant to the Catalist Rules and the Singapore CompaniesAct,Chapter50,itistheBoard’spolicytoensurethatallshareholdersareinformedregularlyandonatimelybasisof every significant development that has an impact on the Group.



The Company does not practise selective disclosure. Price-sensitive information is first publicly released before the Company meets with any group of investors or analysts. Results and annual reports are announced or issued within the mandatory period.

Regular media and analyst briefings are organised to enable a better appreciation of the Group’s performance and developments. TheCompanyholdsinvestorbriefings,invitingthemediaandanalysts,afterthereleaseofthefullyearfinancialresults.

The Company conducts its investor relations on the following principles:

(a) Informationdeemedtobeprice-sensitiveisdisseminatedwithoutdelayviaannouncementsand/orpressreleasesonSGXNET;

(b) Discussonlypublicly-availableandpubliclyknowninformationduringdialogueswith investorsandanalysts,principallyfollowingannouncementoffinancialresults;

(c) Endeavour to provide comprehensive information in financial results announcements to help shareholders and potential investorsmakeinformeddecisions;and

(d) Operateanopenpolicywithregardtoinvestors/emailenquiries.

Conduct of Shareholders Meetings

Principle 16: Companies should encourage greater shareholder participation at general meetings, and allow shareholders the opportunity to communicate their views on various matters affecting the company.

AllshareholderswillreceivetheCompany’sannualreportandnoticeofAGM.ShareholderswillbegiventheopportunityandtimetovoicetheirviewsandaskDirectorsortheManagementquestionsregardingtheCompanyattheforthcomingAGM.

TheChairmanofeachBoardcommitteeisrequiredtobepresenttoaddressquestionsattheAGM.TheexternalauditorwillalsobepresentatsuchmeetingtoassisttheDirectorstoaddressshareholders’queries,ifnecessary.

TheArticlesofAssociationoftheCompanyallowanymemberoftheCompany,ifhe/sheisunabletoattendthemeeting,toappoint not more than two proxies to attend and vote on their behalf at the meeting through proxy forms sent in advance.



ADDITIONAL INFORMATION

Dealing in Securities

The Company has adopted policies in line with the requirements of the Catalist Rules on dealings in the Company’s securities.

The Company and its officers are prohibited from dealing in the Company’s shares on short-term considerations or when they are in possession of unpublished price-sensitive information. They are not allowed to deal in the Company’s shares during the period commencing one month before the date of the announcement of the full-year or half-year results and ending on the date of the announcement of the relevant results.

Inaddition,Directorsandkeyexecutivesareexpectedtoobserveinsidertradinglawsatalltimesevenwhendealinginsecuritieswithin the permitted trading period.

Interested Person Transactions

TheCompanyhasadoptedaninternalpolicyinrespectofanytransactionwithaninterestedperson,whichsetsouttheproceduresfor review and approval of such transaction.

AllinterestedpersontransactionswillbedocumentedandsubmittedperiodicallytotheACfortheirreviewtoensurethatsuchtransactionsarecarriedoutonanarm’slengthbasisandonnormalcommercialtermsandarenotprejudicialtotheCompany.

Details of the interested person transactions entered into by the Group for the financial year under review as required pursuant toRule1204(17)oftheCatalistRulesaresetoutbelow:

Name of interested person

Aggregate value of all interested person transactions during the

financial year under review (excluding transactions less than $100,000

and transactions conducted under shareholders’ mandate pursuant to

Rule 920)

Aggregate value of all interested person transactions conducted under shareholders’ mandate pursuant to

Rule 920 (excluding transactions less than $100,000)

ADD Group Pte LtdPaymentonbehalfofADDGroupAdvancetoADDGroup

Green Pest Management Pte Ltd Testing fees paid to Green Pest

319,000131,000

156,000

NotApplicable

The Board confirms that the above interested person transactions were entered into on an arm’s length basis and on normal commercialtermsandarenotprejudicialtotheinterestsoftheshareholdersoftheCompany.



Non-Sponsor Fees

WithreferencetoRule1204(21)oftheCatalistRules,therewasnonon-sponsorfeepaidtotheSponsor,HongLeongFinanceLimited,forthefinancialyearunderreview.

Material Contracts and Loans

PursuanttoRule1204(8)oftheCatalistRules,theCompanyconfirmsthatexceptasdisclosedintheDirectors’reportandthefinancialstatements,therewerenoothermaterialcontractsandloansoftheCompanyanditssubsidiariesinvolvingtheinterestsoftheExecutiveDirectorsoranyDirectororcontrollingshareholder,eitherstillsubsistingattheendofthefinancialyearorifnotthensubsisting,whichwereenteredintosincetheendofthepreviousfinancialyear.

Risk Management

TheCompanydoesnothaveariskmanagementcommittee.However,theManagementregularlyreviewsandimprovestheGroup’sbusinessandoperationalactivitiestoidentifyareasofsignificantbusinessrisksaswellasappropriatemeasurestocontrolandmitigatesuchrisks.TheManagementreviewssignificantcontrolpoliciesandproceduresandhighlightssignificantmatterstotheBoardandtheAC.

Use of IPO Proceeds

TheGroupraisedgrossproceedsof$6.8millionfromitsIPOexercise.Asat23September2013,theIPOproceedshavebeenutilised as follows:

Usage of IPO Proceeds

Amount allocated

$’000

Amount utilised$’000

Balance$’000

ToexpandourbusinessinprovidinggreensolutionsandproductsforR&RandA&Aprojectsandourfleetofequipment,machineryandvehicles

1,200 (300) 900

Toexpandourbusinessthroughacquisitions,jointventuresand/orstrategicalliances,as well as developing new businesses

2,500 (51) 2,449

Generalworkingcapital 1,570 (72) 1,498Listing expenses borne by the Company 1,491 (1,263) 228Total 6,761 (1,686) 5,075


Directors’ Report

The directors are pleased to present their report to the members together with the audited consolidated financial statements of ISOTeam Ltd. and its subsidiaries (the “Group”) for the financial year ended 30 June 2013 and the statement of financial position of ISOTeam Ltd. (the “Company”) as at 30 June 2013.

1 DIRECTORS

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

NgChengLian Koh Thong Huat Foo Joon Lye TanEngAnn Soh Chun Bin NgKhengChoo

2 ARRANGEMENT TO ENABLE DIRECTORS TO ACqUIRE BENEFITS

NeitherattheendofnoratanytimeduringthefinancialyearwastheCompanyapartytoanyarrangementwhoseobjectsare,oroneofwhoseobjectsis,toenablethedirectorsoftheCompanytoacquirebenefitsbymeansoftheacquisitionofshares in or debentures of the Company or any other body corporate.

3 DIRECTORS’ INTEREST IN SHARES OR DEBENTURES

The directors of the Company holding office at the end of the financial year had no interests in the shares or debentures of theCompanyand/relatedcompaniesasrecordedintheRegisterofDirectors’ShareholdingskeptbytheCompanyunderSection164oftheSingaporeCompaniesAct(the“Act”),exceptasfollows:

Number of ordinary sharesShareholdings

registered in thename of directors

Shareholdings inwhich a director is

deemed to have an interestAt At At At

Name of directors 1.7.2012 30.6.2013 1.7.2012 30.6.2013

NgChengLian – 6,488,000 – 59,977,203Koh Thong Huat – 6,488,000 – 59,977,203Foo Joon Lye – 6,488,000 – 59,977,203

ThedeemedinterestofNgChengLian,KohThongHuatandFooJoonLyeinthesharesoftheCompanyarebyvirtueof their shareholdings inADD InvestmentHolding Pte Ltd.At 30 June 2013,ADD InvestmentHolding Pte Ltd holds59,977,203sharesintheCompany.

ByvirtueofSection7(4)oftheAct,thedirectors,NgChengLian,KohThongHuatandFooJoonLyearedeemedtohavean interest in the shares held by the Company in all of its subsidiaries.

The directors’ interests as at 21 July 2013 was the same as those at the end of the financial year.


Directors’ Report

4 DIRECTORS’ CONTRACTUAL BENEFITS

Sincetheendofthepreviousfinancialyear,nodirectorhasreceivedorbecomeentitledtoreceiveabenefitotherthanthose disclosed in the consolidated financial statements and this report by reason of a contract made by the Company or arelatedcorporationwiththedirectororwithafirmofwhichthedirectorisamember,orwithacompanyinwhichthedirector has a substantial financial interest. Certain directors have received remuneration from related corporations in their capacityasdirectorsand/orexecutivesofthoserelatedcorporations.

5 SHARE OPTIONS

The Company does not have any share option scheme or share scheme.

NooptiontotakeupunissuedsharesoftheCompanyoritssubsidiarieswasgrantedduringthefinancialyear.

TherewerenosharesissuedduringthefinancialyearbyvirtueoftheexerciseofoptionstotakeupunissuedsharesoftheCompany or its subsidiaries whether granted before or during the financial year.

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

6 ISOTEAM PERFORMANCE SHARE PLAN

The ISOTeam Performance Share Plan (the “ISOTeam PSP”) was adopted by the shareholders of the Company on 5June 2013. The ISOTeam PSP contemplates the award of fully-paid shares in the capital of the Company (“Shares”) to participantsaftercertainpre-determinedbenchmarkshavebeenmet.TheDirectorsbelievethat the ISOTeamPSPwillbemoreeffectivethanpurecashbonusesinmotivatingemployeesoftheGrouptoworktowardspre-determinedgoals.

The ISOTeam PSP allows for participation by full-time employees of the Group (including the executive directors who are not a substantial shareholder of the Company or its associates) who have attained the age of 18 years and above on or beforetherelevantdateofgrantoftheaward,providedthatnoneshallbeanundischargedbankruptorhaveenteredintoacompositionwithhiscreditors.Non-executivedirectors,independentdirectorsandcontrollingshareholders(includingtheir associates) of the Company are not eligible to participate in the ISOTeam PSP.

The ISOTeam PSP is administered by the Remuneration Committee of the Company which has the absolute discretion to determine persons who will be eligible to participate in the ISOTeam PSP. The ISOTeam PSP shall continue in operation for amaximumperiodof10yearscommencingonthedateonwhichtheISOTeamPSPisadopted,providedthattheISOTeamPSP may continue beyond the above stipulated period with the approval of the shareholders by ordinary resolution in general meeting and of any relevant authorities which may then be required.

ThetotalnumberofshareswhichmaybeissuedortransferredpursuanttotheawardsgrantedundertheISOTeamPSP,whenadded to (i) thenumberof shares issuedor issuable and/or transferredor transferrable in respectof all awardsgrantedthereunder;and(ii)allsharesissuedorissuableand/ortransferredortransferrableunderanyothershareincentiveschemesadoptedbytheCompanyforthetimebeinginforce,shallnotexceed15%ofthetotalissuedsharecapitaloftheCompany on the day preceding the relevant award date.

SincethecommencementoftheISOTeamPSP,theCompanyhasnotgrantedanyawardsundertheISOTeamPSP.


7 AUDIT COMMITTEE

TheAuditCommitteecomprisesthreemembers,whoareallindependentdirectors.ThemembersoftheAuditCommitteefor the financial year are:

TanEngAnn(Chairman) Soh Chun Bin NgKhengChoo

TheAuditCommitteecarriedoutitsfunctionsinaccordancewithSection201B(5)oftheCompaniesActandperformedthefollowing functions:

(a) reviewingtheauditplansoftheexternalauditorandinternalauditor,includingtheresultsoftheexternalandinternalauditors’reviewandevaluationofthesystemofinternalcontrolsoftheGroup;

(b) reviewingtheannualconsolidatedfinancialstatementsandtheexternalauditor’sreportonthosefinancialstatements,anddiscussanysignificantadjustments,majorriskareas,changesinaccountingpolicies,compliancewithSingaporeFinancialReportingStandards,concernsandissuesarisingfromtheirauditsincludinganymatterswhichtheauditorsmaywishtodiscussintheabsenceofmanagement,wherenecessary,beforesubmissiontotheBoardforapproval;

(c) reviewing the periodic consolidated financial statements comprising the statement of comprehensive income and the statementoffinancialpositionandsuchotherinformationrequiredbytheCatalistRules,beforesubmissiontotheBoardforapproval;

(d) reviewinganddiscussingwiththeexternalandinternalauditor,ifanysuspectedfraud,irregularityorinfringementofanyrelevantlaws,rulesandregulations,whichhasorislikelytohaveamaterialimpactontheGroup’soperatingresultsorfinancialpositionandthemanagement’sresponse;

(e) reviewingtheco-operationgivenbythemanagementtotheexternalauditor;

(f) consideringtheappointmentorre-appointmentoftheexternalauditor;

(g) reviewingandratifyinganyinterestedpersontransactionsfallingwithinthescopeofChapter9oftheCatalistRules;

(h) reviewingpotentialconflictsofinterests(ifany);

(i) reviewing the procedures by which employees of theGroupmay, in confidence, report to the chairman of theAuditCommittee,possibleimproprietiesinmattersoffinancialreportingorothermattersandensurethattherearearrangementsinplaceforindependentinvestigationandfollow-upactionsthereto;

(j) undertakingsuchotherreviewsandprojectsasmayberequestedbytheBoard,andreporttotheBoarditsfindingsfromtimetotimeonmattersarisingandrequiringtheattentionoftheAuditCommittee;and

(k) undertakinggenerallysuchotherfunctionsanddutiesasmayberequiredbylawortheCatalistRules,andbysuchamendments made thereto from time to time.

Directors’ Report


Directors’ Report

8 INDEPENDENT AUDITOR

Theindependentauditor,BakerTillyTFWLLP,hasexpresseditswillingnesstoacceptre-appointment.

On behalf of the directors

NgChengLian KohThongHuatDirector Director

1 October 2013


In the opinion of the directors:

(i) the consolidated financial statements of the Group and the statement of financial position of the Company as set out on pages46to83aredrawnupsoastogiveatrueandfairviewofthestateofaffairsoftheGroupandoftheCompanyas at 30June2013andoftheresults,changesinequityandcashflowsoftheGroupforthefinancialyearthenendedinaccordancewiththeActandSingaporeFinancialReportingStandards;and

(ii) 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 directors

NgChengLian KohThongHuatDirector Director

1 October 2013

Statement by Directors


Independent Auditor’s ReportTo the Members of ISoTeam Ltd.

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of ISOTeam Ltd. (the “Company”) and its subsidiaries (collectively the “Group”)assetoutonpages46to83,whichcomprisethestatementsoffinancialpositionoftheGroupandtheCompanyasat30June2013,andtheconsolidatedstatementofcomprehensiveincome,consolidatedstatementofchangesinequityandconsolidatedstatementofcashflowsoftheGroupforthefinancialyearthenended,andasummaryofsignificantaccountingpolicies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation of the financial statements that give a true and fair view in accordance with SingaporeFinancialReportingStandards,andfordevisingandmaintainingasystemofinternalaccountingcontrolssufficienttoprovideareasonableassurancethatassetsaresafeguardedagainstlossfromunauthoriseduseordisposition;andtransactionsare properly authorised and that they are recorded as necessary to permit the preparation of true and fair profit and loss accounts and balance sheets and to maintain accountability of assets.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance withSingaporeStandardsonAuditing.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformthe audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

Inouropinion,thefinancialstatementsoftheGroupandthestatementoffinancialpositionandstatementofchangesinequityof the Company are properly drawn up in accordance with Singapore Financial Reporting Standards so as to give a true and fair viewofthestateofaffairsoftheGroupandtheCompanyasat30June2013andtheresults,changesinequityandcashflowsof the Group for the financial year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REqUIREMENTS

Inouropinion,theaccountingandotherrecordsrequiredbytheActtobekeptbytheCompanyandbythosesubsidiariesincorporatedinSingaporeofwhichwearetheauditors,havebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

BakerTillyTFWLLPPublicAccountantsandCharteredAccountantsSingapore

1 October 2013


2013 2012Note $’000 $’000

Revenue 4 48,247 35,430Cost of sales (40,053) (29,012)

Gross profit 8,194 6,418

Other income 5 4,729 1,163Marketinganddistributionexpenses (675) (475)General and administrative expenses (5,457) (3,484)Finance costs 6 (342) (246)

Profit before tax 7 6,449 3,376

Tax expense 9 (440) (422)

Profit and total comprehensive income for the year attributable to equity holders of the Company 6,009 2,954

Earnings per shareBasic and diluted (cents) 10 6.92 –

Consolidated Statement of Comprehensive IncomeFor the Financial Year Ended 30 June 2013

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


GROUP COMPANY2013 2012 2013

Note $’000 $’000 $’000

Non-current assetsProperty,plantandequipment 11 4,441 6,284 –Investment property 12 – – –Investment securities 13 400 – –Investment in subsidiaries 14 – – 13,399

Total non-current assets 4,841 6,284 13,399

Current assetsDuefromcustomersforcontractwork-in-progress 15 2,966 3,069 –Trade and other receivables 16 16,572 12,284 575Dividend receivables from subsidiaries – – 2,400Amountsduefromdirectors 17 – 60 –Cashandbankbalances 18 8,463 5,474 –

Total current assets 28,001 20,887 2,975

Total assets 32,842 27,171 16,374

Non-current liabilitiesFinance lease liabilities 19 559 671 –Deferred tax liabilities 20 59 59 –

Total non-current liabilities 618 730 –

Current liabilitiesDuetocustomersforcontractwork-in-progress 15 2,255 1,259 –Bankborrowings 21 4,187 3,765 –Trade and other payables 22 9,630 6,982 5,418Finance lease liabilities 19 444 479 –Amountsduetodirectors 17 – 634 –Tax payables 1,080 1,203 –

Total current liabilities 17,596 14,322 5,418

Total liabilities 18,214 15,052 5,418

Net assets 14,628 12,119 10,956

Share capital and reservesShare capital 23 9,651 4,813 9,651Accumulatedprofits 12,315 7,306 1,305Merger reserve 24 (7,338) – –

Total equity 14,628 12,119 10,956


Statements of Financial PositionAt 30 June 2013


Sharecapital

Accumulatedprofits

Mergerreserve

Totalequity

$’000 $’000 $’000 $’000

GroupAt1.7.2011 4,803 4,352 – 9,155

Profit and total comprehensive income for the year – 2,954 – 2,954

Issuance of ordinary shares on incorporation of subsidiary 10 – – 10

At30.6.2012 4,813 7,306 – 12,119

Profit and total comprehensive income for the year – 6,009 – 6,009

Adjustmentresultingfromrestructuringexercise – – (7,338) (7,338)

Issuance of ordinary shares due to restructuring exercise 4,838 – – 4,838

Dividend(note26) – (1,000) – (1,000)

At 30.6.2013 9,651 12,315 (7,338) 14,628

Consolidated Statement of Changes in EquityFor the Financial Year Ended 30 June 2013



Consolidated Statement of Cash FlowsFor the Financial Year Ended 30 June 2013

2013 2012$’000 $’000

Cash flows from operating activitiesProfit before tax 6,449 3,376

Adjustmentsfor:Depreciationofproperty,plantandequipment 405 369Depreciation of investment property – 23Gainondisposalofproperty,plantandequipment (4,178) (7)Gain on disposal of investment property – (880)Interest income (13) (5)Interest expense 325 228Property,plantandequipmentwrittenoff 51 –Allowancefordoubtfulreceivables 53 –Listing expenses 1,050 –

Operatingprofitbeforeworkingcapitalchanges 4,142 3,104

Projectwork-in-progress 1,099 (555)Trade and other receivables (5,122) (3,732)Trade and other payables 545 2,186

Cash generated from operations 664 1,003

Interest received 13 5Interest paid (325) (228)Tax paid (563) (158)

Net cash (used in) / generated from operating activities (211) 622

Cash flows from investing activitiesPurchasesofproperty,plantandequipment(noteA) (221) (160)Proceeds from disposal of investment property – 2,050Proceedsfromdisposalofproperty,plantandequipment 6,131 19Purchase of investment securities (400) –

Net cash generated from investing activities 5,510 1,909

Cash flows from financing activitiesProceeds from issuance of ordinary shares – 10Fixeddepositspledgedtobank (210) (402)Drawndownofbankborrowings 1,811 819Duefrom/(to)relatedparties(non-trade) 79 (418)Duefrom/(to)directors (574) (453)Repaymentofbankborrowings (1,390) –Repayment of finance lease (492) (299)Dividend paid (1,000) –Listing expenses (744) –

Net cash used in financing activities (2,520) (743)

Net increase in cash and cash equivalents 2,779 1,788

Cash and cash equivalents at beginning of financial year 4,128 2,340

Cash and cash equivalents at end of financial year 6,907 4,128



Consolidated Statement of Cash FlowsFor the Financial Year Ended 30 June 2013

Forthepurposeoftheconsolidatedstatementofcashflows,cashandcashequivalentscomprisethefollowing:

2013 2012$’000 $’000

Cashinhandandatbank(note18) 6,825 3,328Fixed deposits (note 18) 1,638 2,146

8,463 5,474Less: Fixed deposits pledged (note 18) (1,556) (1,346)

6,907 4,128

Note ATheGroupacquiredproperty,plantandequipmentwithanaggregatecostof$566,000(2012:$799,000)ofwhich$345,000(2012:$639,000)wasfinancedbymeansoffinancelease.



Notes to the Financial StatementsFor the Financial Year Ended 30 June 2013

Thesenotesformanintegralpartofandshouldbereadinconjunctionwiththeaccompanyingfinancialstatements.

1 CORPORATE INFORMATION

ISOTeamLtd. (the“Company”) (Co.Reg.No.201230294M)was incorporated inSingaporeon12December2012asaprivatelimitedcompanyunderthenameofISOTeamPte.Ltd..On12June2013,theCompanywasconvertedintoapublic company limited by shares and changed the name to ISOTeam Ltd.. The Company was listed on Catalist board of the Singapore Exchange Securities Trading Limited on 12 July 2013. The financial year of the Company presented in this set of financial statements relates to the period from 12 December 2012 (date of incorporation) to 30 June 2013.

The registered office and principal place of business of theCompany is atNo. 57 Kaki Bukit Place, Eunos Techpark,Singapore416231.

The principal activity of the Company is an investment holding company. The principal activities of the subsidiaries are disclosed in note 14.

2 THE RESTRUCTURING ExERCISES

PriortothelistingoftheCompany,arestructuringexercisewasconductedtostreamlineandrationalisetheGroupstructureand business activities (“Restructuring Exercise”). The following steps were carried out in the Restructuring Exercise:

(a) Incorporation of the Company

TheCompanywasincorporatedinSingaporeon12December2012undertheSingaporeCompaniesActasaprivatecompanylimitedbyshareswithanissuedandpaid-upsharecapitalof$3.00comprisingthreesharesheldbyNgChengLian,KohThongHuatandFooJoonLyeinequalproportion.

(b) AcquisitionofRaymondConstructionPteLtd(“RaymondConstruction”)

Pursuanttoashareexchangeagreementdated28May2013,theCompanyacquiredtheentireissuedsharecapitalofRaymondConstructionforaconsiderationof$4,749,828,aftertakingintoaccountthedivestmentofRaymondConstruction’sinterestinTMSAlliancesatitscostofinvestmentof$1,207,500arisingfromtheRestructuringExerciseasreferredtoinparagraph(d)below.Theconsiderationwassatisfiedbytheallotmentandissueof4,749,828newordinary shares in the share capital of the Company at the issue price of $1.00 per share to the then shareholders of Raymond Construction.

(c) AcquisitionofISO-TeamCorporationPteLtd(“ISO-TeamCorporation”)

Pursuanttoashareexchangeagreementdated28May2013,theCompanyacquiredtheentireissuedsharecapitalofISO-TeamCorporationforaconsiderationof$5,605,791.Theconsiderationwaspartiallysatisfiedbytheallotmentandissueof3,105,791newordinarysharesinthesharecapitaloftheCompanyattheissuepriceof$1.00pershareto the then shareholders of ISO-Team Corporation.

Oftheremainingconsiderationof$2,500,000,$1,400,000willbeusedtooffsetagainsttheamountsowingbyADDGroupPteLtdtoRaymondConstruction,ISO-TeamCorporationandTMSAlliances.Thebalance$1,100,000istobesatisfiedbycashpaymentandwillbepaidtothethenshareholdersofISO-TeamCorporationwithin6monthsfromthe date of completion of the share exchange agreement. The Company will fund the cash payment through loans to be made by its subsidiaries.



2 THE RESTRUCTURING ExERCISES (CONT’D)

(d) AcquisitionofTMSAlliancesPte.Ltd.(“TMSAlliances”)

Pursuanttoashareexchangeagreementdated28May2013,theCompanyacquiredtheentireissuedsharecapitalofTMSAlliancesforaconsiderationof$1,760,381.Theconsiderationwassatisfiedbytheallotmentandissueof1,760,381newordinarysharesinthesharecapitaloftheCompanyattheissuepriceof$1.00persharetothethenshareholdersofTMSAlliances.

RaymondConstructionfurthernominatedADDInvestmentHoldingPteLtdtoreceivethe1,417,107ordinarysharesinthesharecapitaloftheCompanyataconsiderationof$1,207,500whichwasnotonanarm’slengthbasisasitwasdeterminedbasedonthecostofinvestmentofRaymondConstructioninTMSAlliances.

(e) AcquisitionofITG-GreenTechnologiesPte.Ltd.(“ITG-Green”)

Pursuanttoashareexchangeagreementdated28May2013,theCompanyacquiredtheentireissuedsharecapitalofITG-Greenforaconsiderationof$1,790.Theconsiderationwassatisfiedbytheallotmentandissueof1,790newordinary shares in the share capital of the Company at the issue price of $1.00 per share to the then shareholders of ITG-Green.

(f) AcquisitionofISO-SealWaterproofingPte.Ltd.(“ISO-SealWaterproofing”)

Pursuanttoashareexchangeagreementdated28May2013,theCompanyacquiredtheentireissuedsharecapitalofISO-SealWaterproofingforaconsiderationof$33,966.Theconsiderationwassatisfiedbytheallotmentandissueof33,966newordinarysharesinthesharecapitaloftheCompanyattheissuepriceof$1.00persharetothethenshareholder of ISO-Seal Waterproofing.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Basis of preparation

The Restructuring Exercise involved companies which are under common control. The consolidated financial statements of the Group have been prepared in a manner similar to the “pooling-of-interest” method. Such manner of presentationreflectstheeconomicsubstanceofthecombiningcompaniesasasingleeconomicenterprise,althoughthe legal parent-subsidiary relationship was not established until 31 December 2012.

The financial statements of the Group are expressed in Singapore dollars and all values are rounded to the nearest thousand ($’000) except when otherwise indicated. The financial statements of the Group have been prepared in accordance with Singapore Financial Reporting Standards (“FRS”). The financial statements have been prepared under the historical cost convention except as disclosed in the accounting policies below.

The preparation of financial statements in conformity with FRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of thefinancial statementsandthe reportedamountsof revenuesandexpensesduring thefinancialyear.Althoughtheseestimatesarebasedonmanagement’sbestknowledgeofcurrenteventsandactionsandhistoricalexperiencesandvariousotherfactorsthatarebelievedtobereasonableunderthecircumstances,actualresultsmayultimatelydiffer from those estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognisedintheyearinwhichtheestimateisrevisediftherevisionaffectsonlythatyear,orintheyearoftherevisionandfutureyearsiftherevisionaffectsbothcurrentandfutureyears.Theareasinvolvingahigherdegreeofjudgmentinapplyingaccountingpolicies,orareaswhereassumptionsandestimateshaveasignificantriskresultinginmaterialadjustmentwithinnextfinancialyear,aredisclosedinnote3(x)tothefinancialstatements.



3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

a) Basis of preparation (cont’d)

Thecarryingamountsofcashandbankbalances,tradeandotherreceivables,tradeandotherpayables,andamountsdue from/to directors approximate their respective fair values due to the relatively short-termmaturity of thesefinancial instruments.

Duringthefinancialyear,theGrouphasadoptedallnewandrevisedFRSandInterpretationsofFRS(“INTFRS”)thatare relevant to its operations and effective for the current financial year. The adoption of these new and revised FRS andINTFRShasnoanymaterialeffectonthefinancialstatements.

NewandrevisedFRSandINTFRSthathavebeenissuedbutarenotyeteffectiveforthefinancialyearended30June 2013 have not been applied in preparing these financial statements. The directors expect that the adoption of thesenewandrevisedFRSandINTFRSwillhavenomaterialimpactonthefinancialstatementsintheyearofinitialapplication.

b) Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the reporting date. The financial statements of the subsidiaries are prepared for the same reporting date as the parent company.Consistentaccountingpoliciesareappliedforliketransactionsandeventsinsimilarcircumstances.

Intragroupbalancesandtransactionsincludingincome,expensesanddividends,areeliminatedinfull.Profitsandlossesresultingfromintragrouptransactionsthatarerecognisedinassets,suchasinventoryandproperty,plantandequipment,areeliminatedinfull.

Changes in the Group’s interest in subsidiaries that do not result in a loss of control are accounted for as equity transactions.ThecarryingamountsoftheGroup’sinterestsandthenon-controllinginterestsareadjustedtoreflectthe changes in their relative interests in the subsidiaries.Anydifferencebetween theamountbywhich thenon-controllinginterestsareadjustedandthefairvalueoftheconsiderationpaidorreceivedisrecogniseddirectly inequity and attributed to owners of the parent.

WhentheGrouplosescontrolofasubsidiary,theprofitorlossondisposaliscalculatedasthedifferencebetween(i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previouscarryingamountoftheassets(includinggoodwill),andliabilitiesofthesubsidiaryandanynon-controllinginterests.Amountspreviouslyrecognisedinothercomprehensiveincomeinrelationtothesubsidiaryareaccountedfor (i.e. reclassified to profit or loss or transferred directly to retained earnings) in the same manner as would be required if the relevant assets or liabilities were disposed off. The fair value of any investments retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting underFRS39FinancialInstruments:RecognitionandMeasurementor,whenapplicable,thecostoninitialrecognitionofaninvestmentinanassociateorjointlycontrolledentity.

Business combinations involving entities or businesses under common control are accounted for by applying the pooling of interest method.

The financial statements of the Group were prepared by applying the pooling of interest method as the restructuring exercise is a legal reorganisationof entities under commoncontrol.Under thismethod, theCompanyhasbeentreated as the holding company of the subsidiaries for the financial year presented rather than from the completion of the restructuringexercise.Accordingly, the results of theGroup include the results of the subsidiaries for theentireperiodsunderreview.Forthispurpose,comparativesarerestated.Suchmannerofpresentationreflectstheeconomicsubstanceofthecompanies,whichwereundercommoncontrolthroughouttherelevantperiod,asasingleeconomicenterprise,althoughthelegalparent-subsidiaryrelationshipswerenotestablished.




b) Basis of consolidation (cont’d)

Pursuant to this: - Assetsandliabilitiesarereflectedattheirexistingcarryingamounts; - Noamountisrecognisedforgoodwill; - PriortotheissueofsharesbytheCompanyinconnectionwiththerestructuringexercise,theaggregatepaid-up

capital and accumulated profits of the subsidiaries held directly by the Company is shown as the Group’s share capitalandaccumulatedprofitsforfinancialyearunderreview;and

- Upon the completion of the restructuring exercise, any difference between the consideration paid by theCompany and the share capital and accumulated profits of the subsidiaries is reflected within the equity of the Group as merger reserve.

c) Subsidiaries

AsubsidiaryisanentityoverwhichtheGrouphasthepowertogovernthefinancialandoperatingpoliciessoastoobtainbenefitsfromitsactivities.TheGroupgenerallyhassuchpowerwhenitdirectlyorindirectly,holdsmorethan50%oftheissuedsharecapital,orcontrolsmorethanhalfofthevotingpower,orcontrolsthecompositionoftheBoard of Directors. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group has control over another entity.

d) Property, plant and equipment

Property,plantandequipmentare initially recognisedat costandsubsequently carriedat cost lessaccumulateddepreciation and accumulated impairment losses.

Thecostofproperty,plantandequipmentinitiallyrecognisedincludesitspurchasepriceandanycostthatisdirectlyattributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Subsequentexpenditurerelatingtoproperty,plantandequipmentthathasalreadybeenrecognisedisaddedtothecarrying amount of the asset when it is probable that future economic benefits will flow to the Group and the cost can be reliably measured. Other subsequent expenditure is recognised as an expense during the financial year in which it is incurred.

Fully depreciated assets are retained in the financial statements until they are no longer in use.

Ondisposalofproperty,plantandequipment,thedifferencebetweenthenetdisposalproceedsanditscarryingamountistakentoprofitorloss.

Depreciation iscalculatedonastraight linebasis toallocate thedepreciableamountsof theproperty,plantandequipment over their estimated useful lives. The estimated useful lives are as follows:

Years

Furniture and fittings 5Renovation 5Office equipment and fittings 5Site equipment and fittings 5Motor vehicles 10Gondolas and machineries 10Computers 3Leasehold properties overtheleasetermsof45to57years




d) Property, plant and equipment (cont’d)

Theresidualvalues,estimatedusefullivesanddepreciationmethodofproperty,plantandequipmentarereviewed,andadjustedasappropriate,ateachreportingdate.Theeffectsofanyrevisionarerecognisedinprofitorlosswhenthe changes arise.

e) Investment properties

Investmentpropertiescomprisethoseportionsofleaseholdpropertiesthatareheldforlong-termrentalyieldsand/or for capital appreciation.

Investment properties are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses. Depreciation is calculated using a straight-line method to allocate the depreciable amountsovertheleaseterm.Theresidualvalues,usefullivesanddepreciationmethodofinvestmentpropertiesarereviewed,andadjustedasappropriate,ateachreportingdate.Theeffectsofanyrevisionareincludedinprofitorlosswhen the changes arise.

Investmentpropertiesaresubjecttorenovationsorimprovementsatregularintervals.Thecostofmajorrenovationsand improvements is capitalised as addition and the carrying amounts of the replaced components are written off to profitorloss.Thecostofmaintenance,repairsandminorimprovementischargedtoprofitorlosswhenincurred.

Ondisposalofaninvestmentproperty,thedifferencebetweenthedisposalproceedsandthecarryingamount isrecognised in profit or loss.

f) Construction contracts

The Group principally operates fixed price contracts. When the outcome of a construction contract can be estimated reliably,contractrevenueandcontractcostsarerecognisedasrevenueandexpensesrespectivelybyreferencetothe stage of completion of the contract activity at the reporting date (“percentage-of-completion method”). When theoutcomeofaconstructioncontractcannotbeestimatedreliably,contractrevenueisrecognisedtotheextentofcontractcostsincurredthatarelikelytoberecoverable.Whenitisprobablethattotalcontractcostswillexceedtotalcontractrevenue,theexpectedlossisrecognisedasanexpenseimmediately.

Contractrevenuecomprisestheinitialamountofrevenueagreedinthecontractandvariationsinthecontractworkandclaimsthatcanbemeasuredreliably.Avariationoraclaimisrecognisedascontractrevenuewhenitisprobablethat the customer will approve the variation or negotiations have reached an advanced stage such that it is probable that the customer will accept the claim.

Costs incurred during the financial year in connection with future activity on a contract are shown as gross amount duefromcontractwork-in-progressonthestatementoffinancialpositionunlessitisnotprobablethatsuchcontractcostsarerecoverablefromthecustomers,inwhichcase,suchcostsarerecognisedasanexpenseimmediately.

Thestageofcompletionismeasuredbyreferencetotheprofessional’scertificationofvalueofworkdoneto-date.

Atthereportingdate,thecumulativecostsincurredplusrecognisedprofit(lessrecognisedloss)oneachcontractis compared against the progress billings. Where the cumulative costs incurred plus the recognised profits (less recognisedlosses)exceedprogressbillings,thebalanceispresentedasduefromcustomersforcontractwork-in-progress. Where progress billings exceed the cumulative costs incurred plus recognised profits (less recognised losses),thebalanceispresentedasduetocustomersforcontractwork-in-progress.

Progress billings not yet paid by customers and retentions by customers are included within “trade and other receivables”.Advancesreceivedareincludedwithin“tradeandotherpayables”.




g) Financial assets

Classification

The Group classifies its financial assets according to the nature of the assets and purpose for which the assets were acquired. Management determines the classification of its financial assets at initial recognition. The Group’s only financial assets are loans and receivables and held-to-maturity investments.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an activemarket. They are included in current assets, except thosematuring later than 12months after thereporting date which are classified as non-current assets. Loans and receivables are classified within “trade and other receivables”,“amountsduefromdirectors”and“cashandbankbalances”onthestatementoffinancialposition.

Held-to-maturity investments

Non-derivativefinancialassetswithfixedordeterminablepaymentsandfixedmaturitiesthattheGroup’smanagementhas the positive intention and ability to hold to maturity.

Recognition and derecognition

Regular purchases and sales of financial assets are recognised on trade-date - the date on which the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assetshaveexpiredorhavebeentransferredandtheGrouphas transferredsubstantiallyall risksandrewardsofownership.

Ondisposalofafinancialasset,thedifferencebetweenthenetsaleproceedsanditscarryingamountistakentoprofit or loss.

Tradereceivables thatare factoredout tobanksandotherfinancial institutionswith recoursetotheGrouparenotderecognised until the recourse period has expired and the risks and rewards of the receivables have been fullytransferred. The corresponding cash received from the financial institutions is recorded as borrowings.

Initial measurement

Loans and receivables and held-to-maturity financial assets are initially recognised at fair value plus transaction costs.

Subsequent measurement

Loans and receivables and held-to-maturity financial assets are carried at amortised cost using the effective interest method,lessimpairment.

Impairment

TheGroupassessesateachreportingdatewhetherthereisobjectiveevidencethatafinancialassetoragroupoffinancial assets is impaired.




g) Financial assets (cont’d)

Financial assets carried at amortised cost

Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyorfinancialreorganisation,and default or delinquency in payments are considered indicators that the receivable is impaired.

Thecarryingamountoftheseassetsisreducedthroughtheuseofanimpairmentallowanceaccount,andtheamountof the loss is recognised in profit or loss. The allowance amount is the difference between the asset’s carrying amount andthepresentvalueofestimatedfuturecashflows,discountedattheoriginaleffectiveinterestrate.Whentheassetbecomesuncollectible,itiswrittenoffagainsttheallowanceaccount.Subsequentrecoveriesofamountspreviouslywritten off are recognised against the same line item in profit or loss.

If insubsequentperiods,theimpairmentlossdecreases,andthedecreasecanberelatedobjectivelytoaneventoccurringaftertheimpairmentlosswasrecognised,thepreviouslyrecognisedimpairmentlossisreversedthroughprofit or loss to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversed date.

Financial assets, held-to-maturity

Ifthereisobjectiveevidencethatanimpairmentlossonheld-to-maturityfinancialassetshasincurred,thecarryingamount of the asset is reduced by an allowance for impairment and the impairment loss is recognised in profit or loss. Thisallowance,calculatedasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheoriginaleffectiveinterestrate,isrecognisedinprofitorlossintheperiodinwhichthe impairment occurs.

Impairmentlossisreversedthroughtheprofitorlossiftheimpairmentlossdecreasecanberelatedobjectivelytoan event occurring after the impairment loss was recognised. The carrying amount of the asset previously impaired is increased to the extent that the new carrying amount does not exceed the amortised cost had no impairment been recognised in prior periods.

h) Impairment of non-financial assets

Ateachreportingdate,theGroupassessesthecarryingamountsofitsnon-financialassetstodeterminewhetherthereisanyindicationthatthoseassetshavesufferedanimpairmentloss.Ifanysuchindicationexists,therecoverableamount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possibletoestimatetherecoverableamountofanindividualasset,theGroupestimatestherecoverableamountofthe cash-generating unit to which the asset belongs.

Recoverable amount is thehigherof fair value less costs to sell and value in use. In assessing value in use, theestimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current marketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.

Iftherecoverableamountofanasset(orcash-generatingunit)isestimatedtobelessthanitscarryingamount,thecarrying amount of the asset (cash-generating unit) is reduced to its recoverable amount.An impairment loss isrecognisedimmediatelyinprofitorloss,unlesstherelevantassetiscarriedatarevaluedamount,inwhichcasetheimpairment loss is recognised in other comprehensive income up to the amount of any previous revaluation.




h) Impairment of non-financial assets (cont’d)

Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheasset(cash-generatingunit)isincreasedtotherevisedestimateofitsrecoverableamount,butsothattheincreasedcarryingamountdoesnotexceedthecarrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generatingunit) inprioryears.Apreviously recognised impairment loss foranasset isonly reversed if therehasbeen a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised.Areversalofanimpairmentlossisrecognisedimmediatelyinprofitorloss,unlesstherelevantassetiscarriedatarevaluedamount,inwhichcasethereversaloftheimpairmentlossistreatedasarevaluationincrease.

i) Financial liabilities

Financialliabilitiesincludetradeandotherpayables,bankborrowings,financeleaseliabilitiesandamountsduetodirectors.Financialliabilitiesarerecognisedonthestatementoffinancialpositionwhen,andonlywhen,theGroupbecomes a party to the contractual provisions of the financial instruments. Financial liabilities are initially recognised at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method.

A financial liability is derecognisedwhen the obligation under the liability is extinguished.Gains and losses arerecognised in profit or loss when the liabilities are derecognised and through the amortisation process.

j) Provisions

ProvisionsarerecognisedwhentheGrouphasapresentlegalorconstructiveobligationasaresultofpastevent,andit is probable that an outflow of economic resources will be required to settle that obligation and that the amount can be estimated reliably. Provisions are measured at management’s best estimate of the expenditure required to settle theobligationatthereportingdate,andarediscountedtopresentvaluewheretheeffectismaterial.

k) Share capital

Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs directly attributable to the issuance of ordinary shares are deducted against share capital.

l) Merger reserve

Merger reserve represents the difference between the consideration paid by the Company and the share capital of thesubsidiariesacquiredundercommoncontrol,followingtheapplicationofpoolingofinterestmethod.Thisreservewill remain until the subsidiaries are disposed.

m) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits associated with the transaction will flowtotheGroup,andtheamountofrevenueandrelatedcostcanbereliablymeasured.

Revenue from construction contract is recognised by reference to the stage of completion of the contract activity at the reporting date (the percentage of completion method).

Revenue from sale of goods is recognised when the Company has delivered the products to the customer and significantrisksandrewardsofownershipofthegoodshavebeenpassedtothecustomer.

Service income is recognised after the services have been rendered.

Interest income is recognised on a time proportion basis using the effective interest method.

Dividend income is recognised when the right to receive the payment is established.

Rental income from operating leases is recognised on a straight-line basis over the lease term.




n) Government grants

Government grants are recognised at their fair value where there is reasonable assurance that the grant will be receivedandallattachingconditionswillbecompliedwith.Where thegrant relates toanasset, the fairvalue isrecognised as deferred capital grant on the statement of financial position and is amortised to profit or loss over the expected useful life of the relevant asset by equal annual instalments.

Whenthegrantrelatestoanexpenseitem,itisrecognisedinprofitorlossovertheperiodnecessarytomatchthemon a systematic basis to the costs that it is intended to compensate.

o) Leases

When the Group entity is the lessee:

Finance leases

Leasesofproperty,plantandequipmentwheretheGroupassumessubstantiallyalltherisksandrewardsincidentalto ownership are classified as finance leases. Finance leases are capitalised at the inception of the lease at the lower of fair value of the leased asset or the present value of the minimum lease payments. Each lease payment is allocated betweenreductionoftheliabilityandfinancecharges.Thecorrespondingrentalobligations,netoffinancecharges,areincludedinfinanceleaseliabilities.Theinterestelementofthefinancecostistakentoprofitorlossovertheleaseperiod so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The asset acquired under finance leases are depreciated over the shorter of the useful life of the asset or the lease term.

Operating leases

Leaseswhereasignificantportionof therisksandrewards incidental toownershipareretainedbythe lessorareclassified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) aretakentoprofitorlossonastraight-linebasisovertheperiodofthelease.

Whenanoperatingleaseisterminatedbeforetheleaseperiodexpires,anypaymentrequiredtobemadetothelessorbywayofpenaltyisrecognisedasanexpenseintheperiodinwhichterminationtakesplace.

When a Group entity is the lessor:

Operating leases

LeaseswheretheGroupentityretainssubstantiallyalltherisksandrewardsincidentaltoownershipoftheassetareclassified as operating leases. Rental income (net of any incentives given to lessees) is recognised on a straight-line basis over the lease term.

p) Employee benefits

Defined contribution plans

Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into separateentitiessuchastheCentralProvidentFund,andwillhavenolegalorconstructiveobligationtopayfurthercontributions once the contributions have been paid. Contributions to defined contribution plans are recognised as an expense in the period in which the related service is performed.




p) Employee benefits (cont’d)

Employee leave entitlement

Employeeentitlementstoannualleavearerecognisedwhentheyaccruetoemployees.Aprovisionismadefortheestimated liability for annual leave as a result of services rendered by employees up to the reporting date.

q) Borrowing costs

Borrowingcosts,whichcomprise interestandothercosts incurredinconnectionwiththeborrowingof funds,arecapitalisedaspartofthecostofaqualifyingassetiftheyaredirectlyattributabletotheacquisition,constructionorproduction of that asset. Capitalisation of borrowing costs commences when the activities to prepare the asset for its intended use or sale are in progress and the expenditures and borrowing costs are incurred. Borrowing costs are capitaliseduntiltheassetsaresubstantiallycompletedfortheirintendeduseorsale.Allotherborrowingcostsarerecognised in profit or loss using the effective interest method.

r) Income taxes

Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in profit or lossexcepttotheextentthatitrelatestoitemsrecogniseddirectlytoequity,inwhichcaseitisrecognisedinequity.

Currenttaxistheexpectedtaxpayableorrecoverableonthetaxableincomeforthecurrentyear,usingtaxratesenactedorsubstantivelyenactedatthereportingdate,andanyadjustmenttotaxpayableorrecoverableinrespectof previous years.

Deferredincometaxisprovidedusingtheliabilitymethod,onalltemporarydifferencesatthereportingdatearisingbetween the tax bases of assets and liabilities and their carrying amounts in the financial statements except where the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a businesscombination,andatthetimeofthetransaction,affectsneithertheaccountingnortaxableprofitorloss.

Deferredincometaxisprovidedontemporarydifferencesarisingoninvestmentsinsubsidiaries,exceptwherethetiming of the reversal of the temporary difference can be controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realisedortheliabilityissettled,basedoncurrentlyenactedorsubstantivelyenactedtaxratesatthereportingdate.

Deferredincometaxischargedorcreditedtoequityifthetaxrelatestoitemsthatarecreditedorcharged,inthesameoradifferentperiod,directlytoequity.

s) Functional and foreign currencies

Functional and presentation currency

Items included in the financial statements of each entity in the Group are measured using the currency of the primary economic environment in which that entity operates (the “functional currency”). The financial statements of the Group arepresentedinSingaporedollars,whichistheCompany’sfunctionalcurrency.




s) Functional and foreign currencies (cont’d)

Transactions and balances

Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Currency translation gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Non-monetaryitemsmeasuredatfairvaluesinforeigncurrenciesaretranslatedusingtheexchangeratesatthedatewhen the fair values are determined.

t) Dividends

Interim dividends are recorded during the financial year in which they are declared payable. Final dividends are recorded in the financial statements in the period in which they are approved by the Company’s shareholders.

u) Cash and cash equivalents

Forthepurposesofpresentationinthestatementofcashflows,cashandcashequivalentscomprisecashonhand,depositswithfinancialinstitutionswhicharereadilyconvertibleandsubjecttoaninsignificantriskofchangeinvalueexcludespledgeddeposits.Bankoverdraftsarepresentedascurrentborrowingsonthestatementoffinancialposition.

v) Related parties

Arelatedpartyisdefinedasfollows:

a) Apersonoraclosememberofthatperson’sfamilyisrelatedtotheCompanyifthatperson:

(i) hascontrolorjointcontrolovertheCompany; (ii) hassignificantinfluenceovertheCompany;or (iii) isamemberofthekeymanagementpersonneloftheCompanyorofaparentoftheCompany.

b) AnentityisrelatedtotheCompanyifanyofthefollowingconditionsapplies:

(i) TheentityandtheCompanyaremembersofthesamegroup(whichmeansthateachparent,subsidiaryand fellow subsidiary is related to the others).

(ii) Oneentityisanassociateorjointventureoftheotherentity(oranassociateorjointventureofamemberof a group of which the other entity is a member).

(iii) Bothentitiesarejointventuresofthesamethirdparty. (iv) Oneentityisajointventureofathirdentityandtheotherentityisanassociateofthethirdentity. (v) The entity is a post-employment benefit plan for the benefit of employees of either the Company or an

entityrelatedtotheCompany.IftheCompanyisitselfsuchaplan,thesponsoringemployersarealsorelatedtotheCompany;

(vi) Theentityiscontrolledorjointlycontrolledbyapersonidentifiedin(a); (vii) Apersonidentifiedin(a)(i)hassignificantinfluenceovertheentityorisamemberofthekeymanagement

personnel of the entity (or of a parent of the entity).




w) Segment reporting

Anoperating segment is a component of theGroup that engages in business activities fromwhich itmay earnrevenuesandincursexpenses,includingrevenuesandexpensesthatrelatetotransactionswithothercomponentsof the Group. Operating segments are reported in a manner consistent with the internal reporting provided to the Group’schiefoperatingdecisionmakerformakingdecisionsaboutallocatingresourcesandassessingperformanceof the operating segments.

x) Key source of estimation uncertainty

Thekeyassumptionsconcerningthefuture,andotherkeysourcesofestimationuncertaintyattheendofthereportingperiod,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyear,arediscussedbelow.

Income taxes

Uncertaintiesexistwithrespect tothe interpretationofcomplextaxregulations, theamountandtimingof futuretaxableincomeanddeductibilityofcertainexpenditure.Accordingly,therearecertaintransactionsandcomputationsfor which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for expected tax issues based on reasonable estimates of whether additional taxes will be due. Where the finaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferenceswillimpact the income tax and deferred tax provisions in the period in which such determination is made. The carrying amountoftheGroup’staxpayablesanddeferredtaxliabilitiesat30June2013were$1,080,000and$59,000(2012:$1,203,000and$59,000)respectively.

Impairment of loans and receivables

TheGroupassessesateachreportingdatewhetherthereisanyobjectiveevidencethatafinancialassetisimpaired.Todeterminewhetherthereisobjectiveevidenceofimpairment,theGroupconsidersfactorssuchastheprobabilityof insolvency or significant financial difficulties of the debtor and default or significant delay in payments.

Wherethereisobjectiveevidenceofimpairment,theamountandtimingoffuturecashflowsareestimatedbasedonhistoricallossexperienceforassetswithsimilarcreditriskcharacteristics.ThecarryingamountsoftheGroup’sloansand receivables at the reporting date are disclosed in note 29(a) to the financial statements.

Construction contracts

The Group recognises contract revenue by reference to the stage of completion of the contract activity at end of the reportingperiod,whentheoutcomeofaconstructioncontractcanbeestimatedreliably.Thestageofcompletionismeasuredbyreferencetotheprofessional’scertificationofvalueofworkdoneto-date.

Significantassumptionsarerequiredindeterminingthestageofcompletion,theextentofthecontractcostsincurred,theestimatedtotalcontractrevenueandcontractcosts,aswellastherecoverabilityofthecontracts.Totalcontractrevenuealsoincludesanestimationofthevariationworksandclaimsthatarerecoverablefromthecustomers. Inmakingtheseestimates,theGroupreliedonpastexperienceandknowledgeoftheprojectmanagers.Thecarryingamounts of assets and liabilities arising from construction contracts at the end of the reporting period are disclosed innote15tothefinancialstatements.




x) Key source of estimation uncertainty (cont’d)

Estimated useful lives of property, plant and equipment

Depreciationiscalculatedtowriteoffthecostofitemsofproperty,plantandequipment,lesstheirestimatedresidualvalue,ifany,usingthestraight-linemethodovertheirestimatedusefullives.TheGroupreviewstheestimatedusefullives and residual values of the assets annually in order to determine the amount of depreciation expense to be recorded during the reporting period. The useful lives are based on the Group’s historical experience with similar assetsandtakingintoaccountanticipatedtechnologicalchanges.

4 REvENUE

GROUP2013 2012$’000 $’000

Revenue from contracts 47,423 34,803Revenue from other services 728 627Sales of goods 96 –

48,247 35,430

5 OTHER INCOME

GROUP2013 2012

$’000 $’000

Accountingincomefromrelatedparties 20 30Government grants 18 32Gainondisposalofproperty,plantandequipment 4,178 7Gain on disposal of investment property – 880Interest income 13 5Sales of scrap materials 19 9Rental income 175 112Others 306 88

4,729 1,163



6 FINANCE COSTS

GROUP2013 2012$’000 $’000

Interest expense:- finance lease 54 52- factoring loan 213 56- term loan 46 100- others 12 20Bankcharges 17 18

342 246

7 PROFIT BEFORE TAx

GROUP2013 2012

$’000 $’000

This is arrived at after charging:

Allowancefordoubtfuldebts(note16) 53 –Auditfeepaid/payabletoauditorsoftheCompany 130 58Non-auditfeespaid/payabletoauditorsoftheCompany – –Depreciation of investment property (note 12) – 23Depreciationofproperty,plantandequipment(note11) 405 369Listing expenses* 1,050 –Personnel expenses (note 8) 8,124 6,820Property,plantandequipmentwrittenoff 51 –Rental expense 172 363

* Included in thisexpenseswasanamountof approximately$220,000 (2012:$Nil)paid/payable toauditorof theCompany in respect of professional services rendered as independent reporting auditor.



8 PERSONNEL ExPENSES

GROUP2013 2012$’000 $’000

Directors of the Company:- Salaries and bonus 552 394- CPF 38 26- Fees 11 –

Directorsofthesubsidiaries(includingkeyexecutives):- Salaries and bonus 313 212- CPF 36 21- Fees 3 –- Other short-term benefits 25 –

Key management personnel (non-directors)- Salaries and bonus 148 89- CPF 23 14

Staff costs:- Salaries and bonus 4,944 4,304- CPF 266 228- Other short-term benefits 1,765 1,532

8,124 6,820

9 TAx ExPENSE

GROUP2013 2012$’000 $’000

Tax expense attributable to profits is made up of:

Income tax:- Current year 442 392- Over provision in prior years (2) –

Deferred tax:- Current year – 30

440 422



9 TAx ExPENSE (CONT’D)

The income tax expense on the results of the financial year varies from the amount of income tax determined by applying the Singapore statutory rate of income tax to profit before tax due to the following factors:

GROUP2013 2012

$’000 $’000

Profit before tax 6,449 3,376

Taxcalculatedatataxrateof17% 1,096 574Singapore statutory stepped income exemption (67) (64)Expenses not deductible for tax purposes 315 103Incomenotsubjecttotax (710) (96)Over provision of taxation in prior years (2) –Deferred tax assets not recognised for the year 9 –Utilisation of previously unrecognised deferred tax assets (15) (38)Effect of tax incentives (106) –Others (80) (57)

440 422

10 EARNINGS PER SHARE

The following reflects the profit attributable to the equity holders of the Company used in the earnings per share computation:

GROUP2013 2012

$’000 $’000

Profit attributable to equity holders of the Company 6,009 2,954

’000 ’000

Pre-invitation number of ordinary shares(1) 86,866 –(2)

Earnings per share (cents)- Basic and diluted 6.92 –(2)

The basic and diluted earnings per share are the same as the Group does not have any potentially dilutive instruments for the relevant periods.

(1) AstheCompanywasincorporatedon12December2012withaninitialissuedsharecapitalconsistingof3ordinaryshares, it isnotmeaningfultopresentearningspersharebasedonweightedaveragenumberofordinaryshares.Basic earnings per share are calculated by dividing the Group’s net profits attributable to equity holders of the Company by the pre-invitation number of ordinary shares.

(2) TheCompanywasonlyincorporatedon12December2012,assuch,theGroupwasnotinexistenceasat30June2012.



11 PROPERTY, PLANT AND EqUIPMENT

Furnitureand

fittings Renovation

Officeequipment

andfittings

Siteequipment

andfittings

Motorvehicles

Gondolasand

machineries ComputersLeaseholdproperties Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Group

2013CostAt1.7.2012 1 543 50 230 1,497 2,158 59 4,960 9,498Additions – 72 55 20 269 78 72 – 566Disposals – – – – – – – (2,081) (2,081)Written off – – (13) (7) – (156) (6) – (182)

At30.6.2013 1 615 92 243 1,766 2,080 125 2,879 7,801

Accumulated depreciation

At1.7.2012 1 440 28 140 972 1,272 45 316 3,214Depreciation charge – 70 10 36 97 95 23 74 405Disposals – – – – – – – (128) (128)Written off – – (13) (7) – (107) (4) – (131)

At30.6.2013 1 510 25 169 1,069 1,260 64 262 3,360

Net carrying valueAt30.6.2013 – 105 67 74 697 820 61 2,617 4,441

2012CostAt1.7.2011 1 543 40 284 1,371 1,606 46 4,960 8,851Additions – – 10 85 126 565 13 – 799Disposals – – – (139) – (13) – – (152)

At30.6.2012 1 543 50 230 1,497 2,158 59 4,960 9,498

Accumulated depreciation

At1.7.2011 1 376 22 255 891 1,194 28 218 2,985Depreciation charge – 64 6 24 81 79 17 98 369Disposals – – – (139) – (1) – – (140)

At30.6.2012 1 440 28 140 972 1,272 45 316 3,214

Net carrying valueAt30.6.2012 – 103 22 90 525 886 14 4,644 6,284



11 PROPERTY, PLANT AND EqUIPMENT (CONT’D)

Thecarryingamountofproperty,plantandequipmentacquiredunderfinanceleasearrangementareasfollows:

GROUP2013 2012$’000 $’000

Motor vehicles 684 524Gondolas and machineries 774 848Office equipment and fittings 41 5Site equipment and fittings 11 17

1,510 1,394

Theleaseholdpropertieswithcarryingamountsof$2,617,000(2012:$4,644,000)aremortgagedtobanktosecurebankingfacilities of the Group (note 21).

12 INvESTMENT PROPERTY


$’000 $’000 $’000

CostAt1July – 1,300 –Disposals – (1,300) –

At30June – – –

Accumulated depreciationAt1July – 107 –Depreciation charge – 23 –Disposals – (130) –

At30June – – –

Net carrying valueAt30June – – –

TheinvestmentpropertywasmortgagedtoafinancialinstitutiontosecurebankborrowingsoftheGroup(note21).Thecharge has been released upon the disposal of the investment property.

The following amounts are recognised in profit or loss:

$’000 $’000 $’000

Rental income – 78 –Direct operating expenses – 46 –

Theinvestmentpropertywasdisposedoffforaconsiderationof$2,050,000infinancialyear2012.Thegainondisposaloftheinvestmentpropertyisdisclosedinnote5tothefinancialstatements.



13 INvESTMENT SECURITIES


$’000 $’000 $’000

Held-to-maturity investment- Structured deposit with a financial institution 400 – –

The structured deposit is denominated in Singapore dollars and matured on 4 June 2018. The financial institution guarantees a minimum interest rate at each of the interest payments dates. The Group earns a bonus interest calculated based on a formulawhichispeggedtoabasketoftradedinstruments.Thestructureddepositbearseffectiveinterestrateof1.02%per annum.

Thestructureddepositwaspledgedtobanksascollateralforbankborrowings(note21).

Theunquoteddebtsecuritieshavefairvalueatthereportingdateamountingto$399,718.Thefairvaluesweredeterminedbasedondiscountedcashflowsusingeffectiveinterestratesforstructureddepositof1.02%perannumasatthereportingdate.

14 INvESTMENT IN SUBSIDIARIES

COMPANY2013$’000

Unquotedequityshares,atcost 13,399

The details of the subsidiaries are as follows:

Group’s equityName of subsidiary interest held(Country of incorporation) Principal activities 2013

%

Held by the Company

ISO-Team Corporation Pte. Ltd.* ProvisionofAdditionandAlterationservices 100(Singapore) and Repair and Redecoration services

Raymond Construction Pte. Ltd.* ProvisionofAdditionandAlterationservices and Repair and Redecoration services

100

(Singapore)

TMSAlliancesPte.Ltd.* Provision of Repair and Redecoration services 100(Singapore)

ITG-Green Technologies Pte. Ltd.* Provision of eco-friendly solutions and products 100(Singapore) and products related to Repair and Redecoration

andAdditionandAlterationservices

ISO-Seal Waterproofing Pte. Ltd.* Provision of reroofing and waterproofing services 100(Singapore)

* AuditedbyBakerTillyTFWLLP,Singapore



15 DUE FROM/(TO) CUSTOMERS FOR CONTRACT wORK-IN-PROGRESS


$’000 $’000 $’000

Aggregatecostsincurredto-date 37,972 22,920 –Attributableprofitsrecognisedto-date 9,423 3,174 –

47,395 26,094 –Less: Progress billings (46,684) (24,284) –

711 1,810 –

Presented as:

Duefromcustomersforcontractwork-in-progress 2,966 3,069 –Duetocustomersforcontractwork-in-progress (2,255) (1,259) –

711 1,810 –

16 TRADE AND OTHER RECEIvABLES


$’000 $’000 $’000

Trade receivables:- third parties 8,123 4,569 –Less:Allowancefordoubtfuldebts (53) – –

8,070 4,569 –- related parties 50 108 –

8,120 4,677 –Retention sums on contracts:- third parties 229 77 –- related parties 86 100 –GST receivables 40 1 30Accruedprogressbillings 6,960 5,782 –Sundry deposits 246 163 –Prepayment 66 – –Deferred IPO expenses 545 – 545Sundry receivables:- third parties 280 158 –- a related party (non-trade) – 1,316 –- a director of a subsidiary – 10 –

16,572 12,284 575



16 TRADE AND OTHER RECEIvABLES (CONT’D)

Movements in allowance for doubtful debts during the financial year are as follows:


$’000 $’000 $’000

At1July – – –Allowancemade(Note7) 53 – –

At30June 53 – –

Thesundryreceivablesduefromarelatedpartyandadirectorofasubsidiarywerenon-tradeinnature,unsecured,interest-free and repayable on demand.

Asatreportingdate,thetotalgrosstradereceivablesamountedto$4,047,000(2012:$2,400,000)werefactoredouttobankswithrecourse.TheGroupdidnotderecognisedtheassetsuntiltherecourseperiodhasexpiredandtheriskandrewards of these receivables have been fully transferred.

17 AMOUNTS DUE FROM/TO DIRECTORS

Theamountsduefrom/todirectorswereinterest-free,non-tradeinnature,unsecuredandrepayable/payableondemand.

18 CASH AND BANK BALANCES


$’000 $’000 $’000

Cashinhandandatbank 6,825 3,328 –Fixed deposits 1,638 2,146 –

8,463 5,474 –

Fixeddepositsplacedwiththereputablefinancialinstitutionandmaturedwithin2to15months(2012:2to10months)fromthereportingdate.Theeffectiveinterestratesrangingfrom0.25%to1.00%(2012:0.05%to1.00%)perannum.

Fixeddepositsincludeanamountof$1,556,000(2012:$1,346,000)whichhavebeenpledgedtobanksascollateralforbankborrowings(note21).



19 FINANCE LEASE LIABILITIES

Minimumlease payments

Present valueof minimum

lease payments2013 2012 2013 2012

$’000 $’000 $’000 $’000

GroupWithin 1 financial year 471 505 444 479Within2to5financialyears 589 713 529 644After5financialyears 31 28 30 27

Total minimum lease payments 1,091 1,246 1,003 1,150Less: future finance charges (88) (96) – –

1,003 1,150 1,003 1,150

Representing finance lease liabilities:- Current 444 479-Non-current 559 671

1,003 1,150

Thefinanceleasesbeareffectiverateofinterestbetween3.51%to8.41%(2012:3.53%to8.41%)perannum.

The Company’s directors have provided personal guarantees for certain of the finance lease liabilities.

20 DEFERRED TAx LIABILITIES

The movements in the deferred tax liabilities are as follows:


$’000 $’000 $’000

At1July 59 29 –Tax charged to profit or loss – 30 –

At30June 59 59 –

The deferred income tax liabilities on temporary differences recognised in the financial statements are in respect of tax effectsarisingfromexcessofcarryingamountovertaxwrittendownvalueofproperty,plantandequipment.



21 BANK BORROwINGS


$’000 $’000 $’000

Term loan I 1,072 1,292 –Term loan II – 1,170 –Factoring loan 2,350 1,303 –Bill payable 765 – –

4,187 3,765 –

Term Loan I

TermloanIisrepayableoveraperiodof10yearscommencingfromMarch2010.Theinterestratearefixedat1.50%above3 month SGD Cost of Fund Rate per annum. The term loan I is secured by:

i) Fresh all monies first legal mortgage over the Group’s leasehold property (note 11). ii) Corporateguaranteefromadirector’srelatedcompany;and iii) Personal guarantee from the Company’s directors.

Term Loan II

Term loan II was bearing interest at:

1st-4thperiods:prevailing3monthSIBORplus1.28% 5th-8thperiods:prevailing3monthSIBORplus1.68% 9thperiodandthereafter:prevailing3monthSIBORplus3.00%

The term loan II was secured by:

i) AlegalmortgageovertheGroup’sleaseholdproperty(note11); ii) JointandseveralguaranteebytheCompany’sdirectors;and iii) Structured deposit (note 13)

Term loan II was fully repaid during the financial year.

Allthetermloansarecallabletermloanandthereforethetermloansareclassifiedundercurrentliabilities.

Factoring loan

FactoringloanissecuredbyjointandseveralguaranteebythedirectorsoftheCompany,alegalmortgageoverthe Group’s leasehold property and a charge over fixed deposits.



22 TRADE AND OTHER PAYABLESGROUP COMPANY

2013 2012 2013$’000 $’000 $’000

Trade payables:- third parties 4,066 3,843 –- related parties 469 646 –GST payables 172 479 –Retention payables:- third parties 1,895 1,321 –- related parties 8 103 –Other payables:- third parties 312 153 222- related parties (non-trade) 1,253 – 1,184- subsidiaries (non-trade) – – 3,121Deposits received – 18 –Accruedoperatingexpenses 1,455 419 891

9,630 6,982 5,418

Theotherpayablesduetorelatedpartiesandsubsidiariesarenon-tradeinnature,unsecured,interest-freeandpayableondemand.

23 SHARE CAPITALGROUP COMPANY

2013 2012 2013Number of

issued sharesIssued

share capitalNumber of

issued sharesIssued

share capitalNumber of

issued sharesIssued

share capital’000 $’000 ’000 $’000 ’000 $’000

Atbeginningofthefinancialyear/dateofincorporation – – 4,803 4,803 * – * –

Issuance of ordinary shares on incorporation of subsidiary – – 10 10 – –

Issuance of ordinary shares due to restructuring exercise 9,651 9,651 – – 9,651 9,651

Sub-division of 1 ordinary share into 9 ordinary share 77,215 – – – 77,215 –

Atendofthefinancialyear 86,866 9,651 4,813 4,813 86,866 9,651

TheholdersofordinarysharesareentitledtoreceivedividendsasandwhendeclaredbytheCompany.Allordinaryshareshave no par value and carry one vote per share without restrictions.

* On12December2012,theCompanyissued3subscribersharesforacashconsiderationof$1.00eachatthedateofits incorporation.

On 5June 2013, the Company issued 9,651,756 ordinary shares for a consideration of $9,651,756 pursuant to therestructuring exercise for the acquisition of subsidiaries.

On5June2013,theissuedandfullypaidupcapitaloftheCompanyof1ordinarysharewassub-dividedinto9ordinaryshares.



24 MERGER RESERvE

Merger reserve represents the differences between the consideration paid and the share capital of subsidiaries acquired.

25 CONTINGENT LIABILITY

TheGrouphasprovidedbankers’guaranteesof$76,000(2012:$76,000)ontheperformanceforsomecontracts.

26 DIvIDEND

COMPANY2013 2012

$’000 $’000

Dividend paid:

Interimexempt(one-tier)dividendof1.15cents(2012:Nil)persharepaid in respect of current financial year 1,000 –

27 RELATED PARTIES TRANSACTIONS

Inadditiontotheinformationdisclosedelsewhereinthefinancialstatements,thefollowingtransactionstookplacebetweenthe Group and the related parties at terms agreed between the parties:


$’000 $’000 $’000

with related partiesIncomeSales (495) (64) –Accountingincome (20) (30) –Rental income (122) (14) –Administrativeincome (84) – –

ExpensesPurchases 1,707 1,049 –Sub-contractors’ cost 2,657 620 –Testing fee 172 134 –Insurance – 3 –

OthersAdvance 31 231 –Payment on behalf 2,103 484 –Receipts on behalf (889) – –

with subsidiariesPayment on behalf – – (129)



28 OPERATING LEASE COMMITMENTS

TheGroupleasesvariousoffices,warehousesandstaff’saccommodationundernon-cancellableoperatingleaseagreements.Theleaseshavevaryingterms,escalationclausesandhavetenureofmorethanoneyearwithrenewaloptions.

The future minimum lease payables under non-cancellable operating leases contracted for at the reporting date but not recognisedasliabilities,areasfollows:


$’000 $’000 $’000

Notlaterthanoneyear 701 452 –Between two and five years 519 31 –

1,220 483 –

LeasetermsdonotcontainrestrictionsintheGroup’sactivitiesconcerningdividends,additionaldebtorfurtherleasing.

29 FINANCIAL INSTRUMENTS

a) Categories of financial instruments

Financial instruments at their carrying amounts at reporting date are as follows:


$’000 $’000 $’000

Financial assetsLoans and receivablesTrade and other receivables 16,506 12,284 575Amountsduefromdirectors – 60 –Dividend receivables from subsidiaries – – 2,400Cashandbankbalances 8,463 5,474 –

24,969 17,818 2,975

Held-to-maturityInvestment securities 400 – –

Financial liabilitiesTrade and other payables 9,630 6,982 5,418Finance lease liabilities 1,003 1,150 –Amountsduetodirectors – 634 –Bankborrowings 4,187 3,765 –

Atamortisedcost 14,820 12,531 5,418



29 FINANCIAL INSTRUMENTS (CONT’D)

b) Financial risk management objectives and policies

TheGroupisexposedtofinancialrisksarisingfromitsoperationsandtheuseoffinancialinstruments.Thekeyfinancialrisksincludeforeigncurrencyrisk,interestraterisk,creditriskandliquidityrisk.Thepoliciesformanagingeachoftheserisksaresummarisedbelow.Thedirectorsreviewandagreepoliciesandproceduresforthemanagementoftheserisks.

TherehasbeennochangetotheGroup’sexposuretothesefinancialrisksorthemannerinwhichtheGroupmanagesandmeasuresfinancialrisk.

Foreign currency risk

TheGroupdoesnothaveexposuretoforeigncurrencyriskasitstransactionsaremainlyinSingaporedollars.

Interest rate risk

InterestrateriskistheriskthatthefairvalueoffuturecashflowoftheGroup’sfinancialinstrumentswillfluctuatebecauseofchangesinmarketinterestrates.TheGroup’sincomeandoperatingcashflowsaresubstantiallyindependentonchangesinmarketinterestratesastheGrouphasnosignificantinterest-bearingassetsandliabilitiesexceptforfixeddeposits(note18),financeleaseliabilities(note19)andbankborrowings(note21).Thesensitivityanalysisforinterestrateriskisnotdisclosedasareasonablypossiblefluctuationinthemarketinterestrateshasnosignificantimpactonthe Group’s profit or loss.

Credit risk

CreditriskreferstotheriskthatacounterpartywilldefaultonitscontractualobligationsresultinginfinanciallosstotheGroup.TheGrouphascreditpoliciesinplaceandtheexposuretocreditriskismonitoredonanongoingbasisby the management.

TheGroup’stradereceivablescomprise8debtors(2012:3debtors)thatrepresentedapproximately45%(2012:25%)of the trade receivables.

The carrying amounts of the financial assets presented on the statement of financial position represent the Group’s maximumexposuretocreditrisk.

Financial assets that are neither past due nor impaired

Trade and other receivables that are neither past due nor impaired are substantially corporate customers with good collectiontrackrecordwiththeGroup.Cashandbankbalancesareplacedwithreputablefinancialinstitutionswithhigh credit ratings and no history of default.




b) Financial risk management objectives and policies (cont’d)

Credit risk (cont’d)

Financial assets that are past due and/or impaired

Thereisnootherclassoffinancialassetsthatispastdueand/orimpairedexceptfortradereceivables.

The table below is an ageing analysis of trade receivables of the Group:


$’000 $’000 $’000

Notpastdueandnotimpaired 12,436 9,204 30Past due but not impaired 2,999 1,433 –Past due and impaired 53 – –

15,488 10,637 30

The age analysis of trade receivables of the Group that are past due but not impaired are as follows:

$’000 $’000 $’000

Pastdue<60days 2,706 912 –Pastdue61to120days 78 2 –Past due over 121 days 215 519 –

2,999 1,433 –

Liquidity risk

LiquidityriskistheriskthattheGroupwillencounterdifficultyinmeetingfinancialobligationsduetoshortageoffunds.TheGroup’sexposuretoliquidityriskarisesprimarilyfrommismatchesofthematuritiesoffinancialassetsandliabilities.TheGroup’sobjectiveistomaintainabalancebetweencontinuityoffundingandflexibilitythroughtheuseof stand-by credit facilities.

Inmanagingitsliquidity,managementmonitorsandreviewstheGroup’sforecastsofliquidityreserves(comprisecashand cash equivalents and undrawn borrowing facilities) on the basis of expected cash flows determined at local level in the respective operating companies of the Group in accordance with limits set by the Group.

Theboardofdirectorsexercisesprudentliquidityandcashflowriskmanagementpoliciesandaimsatmaintaininganadequate level of liquidity and cash flow at all times.




b) Financial risk management objectives and policies (cont’d)

Liquidity risk (cont’d)

The table below summarises the maturity profile of the Group’s financial liabilities at the reporting date based on contractual undiscounted repayment obligations.

Repayableon demand

or within1 year

within 2 to5 years

Over5 years Total

$’000 $’000 $’000 $’000

Group

At 30 June 2013Trade and other payables 9,630 – – 9,630Finance lease liabilities 471 589 31 1,091Bankborrowings 4,338 – – 4,338Financial guarantee contract 76 – – 76

14,515 589 31 15,135

Repayableon demand

or within1 year

within 2 to5 years

Over5 years Total

$’000 $’000 $’000 $’000

Group

At 30 June 2012Trade and other payables 6,982 – – 6,982Finance lease liabilities 505 713 28 1,246Amountsduetodirectors 634 – – 634Bankborrowings 4,106 – – 4,106Financial guarantee contract 76 – – 76

12,303 713 28 13,044

Company

At 30 June 2013Trade and other payables 5,418 – – 5,418

c) Fair values of financial instruments

The carrying amounts of the financial assets and financial liabilities recorded in the financial statements of the Group approximate their fair values due to their short-term nature or they are floating rate instruments that are re-priced to marketinterestratesonorneartheendofthereportingperiod.



30 CAPITAL MANAGEMENT

TheGroup’sobjectiveswhenmanagingcapitalare:

(a) TosafeguardtheGroup’sabilitytocontinueasagoingconcern,sothatitcontinuestoprovidereturnsforshareholdersandbenefitsforotherstakeholders;

(b) TosupporttheGroup’sstabilityandgrowth;and

(c) ToprovidecapitalforthepurposeofstrengtheningtheGroup’sriskmanagementcapability.

The Group actively and regularly reviews and manages its capital structure to ensure optimal capital structure to maximise shareholderreturns,takingintoconsiderationthefuturecapitalrequirementsoftheGroupandcapitalefficiency,prevailingand projected profitability, projected operating cash flows, projected capital expenditures and projected strategicinvestment opportunities. The Group currently does not adopt any formal dividend policy.

ThecapitaloftheGroupmainlyconsistsofequityholdersoftheCompanycomprisingsharecapital,accumulatedprofitsand merger reserve. The Group’s overall strategy remains unchanged from 2012.

The Group are in compliance with all externally imposed capital requirements for financial years ended 30 June 2013 and 2012.

31 SEGMENT INFORMATION

TheGroup isorganised intobusinessunitsbasedonnatureof theprojects formanagementpurposes.ThereportablesegmentsarerevenuefromRepairandRedecoration(“R&R”)andAdditionandAlteration(“A&A”).

R&Rfocusesmainlyonnon-structuralconstruction,improvementsandroutinemaintenanceworks.

A&Afocusesmainlyonstructuralworksandinfrastructureworks.

Managementmonitors the operating results of its business units separately for making decisions about allocation ofresources and assessment of performances of each segment.



31 SEGMENT INFORMATION (CONT’D)

The segment information provided to management for the reportable segments are as follows:

R&R A&A Other Total2013 2012 2013 2012 2013 2012 2013 2012

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Segment revenue - external customer 26,381 16,594 21,770 18,836 96 – 48,247 35,430

Segment profits 4,817 3,088 3,354 3,330 23 – 8,194 6,418

Segment assets 7,707 6,408 10,371 7,298 143 – 18,221 13,706Unallocated assets 14,621 13,465

Total assets 32,842 27,171

Segment liabilities 1,600 482 655 777 253 – 2,508 1,259Unallocated liabilities 15,706 13,793

Total liabilities 18,214 15,052

Other segments itemsCapitalexpenditureproperty,

plant and equipment 566 799Depreciationofproperty,plant

and equipment 405 369Depreciation of investment

property – 23

Segment results

Performance of each segment is evaluated based on segment profit or loss which is measured differently from the net profit beforetaxinthefinancialstatements.Interestincome,otherincome,financecosts,generalandadministrativeexpensesandmarketinganddistributionexpensesarenotallocatedtosegmentsastheGroupfinancingandadministrativefunctionsare managed on a group basis.

Areconciliationofsegmentprofitstotheprofitbeforetaxisasfollows:

2013 2012$’000 $’000

Segment profits 8,194 6,418Interest income 13 5Unallocated corporate expenses & income (1,758) (3,047)

Profit before tax 6,449 3,376



31 SEGMENT INFORMATION (CONT’D)

Segment assets

The amounts provided to management with respect to total assets are measured in a manner consistent with that of the financial statements. Management monitors the assets attributable to each segment for the purposes of monitoring segment performanceandforallocatingresourcesbetweensegments.Allassetsareallocatedtoreportablesegmentsexceptforproperty,plantandequipment,investmentproperty,investmentsecurities,otherreceivables,dividendreceivablesfromsubsidiaries,amountsduefromdirectorsandcashandbankbalances.

Segment liabilities

The amounts provided to management with respect to total liabilities are measured in a manner consistent with that of the financialstatements.Allliabilitiesareallocatedtothereportablesegmentsbasedontheoperationsofthesegmentsotherthanbankborrowings,tradeandotherpayables,financeleaseliabilities,amountsduetodirectors,deferredtaxliabilitiesand tax payables are classified as unallocated liabilities.

Information about major customers Revenuefrom5(2012:5)oftheGroup’smajorcustomersamountingto$27,873,000(2012:$25,070,000),arisingfromthe R&RandA&Asegment. Geographical information

The Group’s revenues from external customers derived solely from customers in Singapore. The non-current assets of the Group are all located in Singapore.

32 EvENTS AFTER THE REPORTING PERIOD

Subsequentto30June2013,thefollowingeventshastakenplace:

a) On 2August 2013, theCompany’swholly-owned subsidiary, ITG-Green Technologies Pte. Ltd. has increased itsissuedandpaidupsharecapitalbywayofanallotmentandissuanceof300,000newordinarysharesof$1eachtothe Company.

b) On30August2013,theCompanyhasincorporateda51%[email protected].(“Zara@ISOTeam”).

Zara@ISOTeamwasincorporatedwithanissuedandpaid-upsharecapitalof$100,000dividedinto100,000ordinaryshares.TheCompanyholds51%ofitstotalissuedsharecapitalwiththeremaining49%heldbyanindividualwhoisunrelated to any of the Company’s directors or controlling shareholders.



33 COMPARATIvE FIGURES

Asdescribedonnote3(b)tothefinancialstatements,thecomparativefiguresoftheGroupfortheprecedingfinancialyearhave been presented under pooling interest manner. The effective date of the pooling interest for accounting purpose predates1July2012,thebeginningofthefinancialyearforwhichthecomparativefigurearepresented,astheGrouphavebeen under common control prior to 1 July 2012.

There are no comparative figures for the Company’s statement of financial position since its incorporation on 12 December 2012.

34 AUTHORISATION OF FINANCIAL STATEMENTS

The financial statements of the Group for the financial year ended 30 June 2013 were authorised for issue in accordance with a resolution of the directors dated 1 October 2013.


SHARE CAPITAL

Issuedandfullypaidcapital–S$16,412,359 Class of shares – Ordinary shares

Totalnumberofsharesinissue–117,595,831 Voting rights – 1 vote per shareNumberoftreasuryshares–Nil

SHAREHOLDINGS HELD IN HANDS OF PUBLIC

BasedontheinformationprovidedandtothebestknowledgeoftheDirectors,approximately32.45%oftheissuedordinarysharesoftheCompanywereheldinthehandsofthepublicasat23September2013andthereforeRule723oftheCatalistRulesis complied with.

DISTRIBUTION OF SHAREHOLDINGS

RANGE OF SHAREHOLDINGS NUMBER OF SHAREHOLDERS % NUMBER OF SHARES %

1 – 999 – – – –1,000–10,000 80 25.00 634,000 0.5410,001–1,000,000 232 72.50 18,479,620 15.711,000,001andabove 8 2.50 98,482,211 83.75Total 320 100.00 117,595,831 100.00

TwENTY LARGEST SHAREHOLDERS

S/N NAME OF SHAREHOLDER SHARES HELD %

1 ADDInvestmentHoldingPte.Ltd. 59,977,203 51.00

2 UOB Kay Hian Pte Ltd 12,848,000 10.93

3 Foo Joon Lye 6,488,000 5.52

4 Koh Thong Huat 6,488,000 5.52

5 NgChengLian 6,488,000 5.52

6 NipponPaint(Singapore)CompanyPrivateLimited 3,089,466 2.63

7 OCBC Securities Private Limited 1,710,000 1.45

8 Wong Chun Weng 1,393,542 1.19

9 ChewHoeHock 908,000 0.77

10 Luo Hongxia 860,000 0.73

11 TianHockGuan(ChenFuyuan) 740,000 0.63

12 Tan Yee Boon 720,000 0.61

13 Ho Vivian 600,000 0.51

14 TanHiokJuJulia 600,000 0.51

15 Ho Hwee Ching 430,000 0.37

16 Lim Kay Sin 430,000 0.37

17 MaybankKimEngSecuritiesPteLtd 401,000 0.34

18 CheongKwokSeng(ZhangGuocheng) 400,000 0.34

19 Yeung Shun Yun 400,000 0.34

20 DMG & Partners Securities Pte Ltd 330,000 0.28

Total 105,301,211 89.56


STATISTICS oF SHAREHoLDINGSAs at 23 September 2013

SUBSTANTIAL SHAREHOLDERS

DIRECT INTEREST DEEMED INTEREST

NAME OF SUBSTANTIAL SHAREHOLDER NUMBER OF SHARES % NUMBER OF SHARES %

ADDInvestmentHoldingPte.Ltd.(1) 59,977,203 51.00 – –

DavidNgChengLian(1) 6,488,000 5.52 59,977,203 51.00

AnthonyKohThongHuat(1) 6,488,000 5.52 59,977,203 51.00

Danny Foo Joon Lye (1) 6,488,000 5.52 59,977,203 51.00

Note:

1. DavidNgChengLian,AnthonyKohThongHuatandDannyFooJoonLyeholdthetotal issuedsharecapitalofADDInvestmentHoldingPte.Ltd.inequalproportion.Assuch,eachofthemisdeemedtobeinterestedinallthesharesinthecapitaloftheCompanyheldbyADDInvestmentHoldingPte.Ltd.underSection7oftheCompaniesAct,Cap.50.


STATISTICS oF SHAREHoLDINGSAs at 23 September 2013

Notice of Annual General MeetingISOTEAMLTD. (RegistrationNumber:201230294M)

NOTICE IS HEREBY GIvENthattheAnnualGeneralMeetingofISOTEAMLTD.(the“Company”)willbeheldatMHotel, 81AnsonRoad,Singapore079908onMonday,28October2013at10.00a.m.,forthefollowingpurposes:

AS ORDINARY BUSINESS

1. ToreceiveandadopttheDirectors’ReportandtheAuditedFinancialStatementsforthefinancialyearended30June2013togetherwiththeIndependentAuditor’sReportthereon.

(Resolution 1)

2. To approve the payment of a final (tax exempt one-tier) dividend of 1.00 cent per ordinary share for the financial year ended 30 June 2013.

(Resolution 2)

3. ToapprovethepaymentofDirectors’feesof$11,166.66forthefinancialyearended30June2013. (Resolution 3)

4. ToapprovethepaymentofDirectors’feesof$134,000forthefinancialyearending30June2014,tobe paid quarterly in arrears.

(Resolution 4)

5. Tore-electthefollowingDirectorsretiringpursuanttoArticle117oftheCompany’sArticlesofAssociation:

MrNgChengLianMr Koh Thong HuatMr Foo Joon LyeMrTanEngAnn(seeexplanatorynote1)Mr Soh Chun Bin (see explanatory note 2)MsNgKhengChoo(seeexplanatorynote3)

(Resolution 5)(Resolution 6)(Resolution 7)(Resolution 8)(Resolution 9)

(Resolution 10)

6. Tore-appointBakerTillyTFWLLPastheexternalauditoroftheCompanyandtoauthorisetheDirectorsto fix their remuneration.

(Resolution 11)

AS SPECIAL BUSINESS

Toconsiderandifthoughtfit,topassthefollowingresolutions(withorwithoutamendments)asOrdinaryResolutions:

7. ThatpursuanttoSection161oftheCompaniesAct,Cap.50andRule806ofSectionB:RulesofCatalistoftheSingaporeExchangeSecuritiesTradingLimited(“SGX-ST”)ListingManual(“CatalistRules”),theDirectors be authorised and empowered to:

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

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

at any time and upon such terms and conditions and for such purposes and to such persons as theDirectorsmayintheirabsolutediscretiondeemfit;and

(b) (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 inforce,

(Resolution 12)


Notice of Annual General Meeting

provided that:

(1) theaggregatenumberofShares(includingSharestobeissuedinpursuanceoftheInstruments,made or granted pursuant to this Resolution) to be issued pursuant to this Resolution shall not exceedonehundredpercentum(100%)ofthetotalnumberofissuedShares(excludingtreasuryshares) (ascalculated inaccordancewithsub-paragraph(2)below),ofwhichtheaggregatenumber of Shares and Instruments to be issued other than on a pro rata basis to shareholders oftheCompanyshallnotexceedfiftypercentum(50%)ofthetotalnumberofissuedShares(excludingtreasuryshares)(ascalculatedinaccordancewithsub-paragraph(2)below);

(2) (subjecttosuchcalculationasmaybeprescribedbytheSGX-ST)forthepurposeofdeterminingtheaggregatenumberofSharesthatmaybeissuedundersub-paragraph(1)above,thetotalnumber of issued Shares (excluding treasury shares) shall be based on the total number of issued Shares(excludingtreasuryshares)atthetimeofthepassingofthisResolution,afteradjustingfor:

(a) newSharesarisingfromtheconversionorexerciseofanyconvertiblesecurities;

(b) new Shares arising from the exercise of share options or vesting of share awards which are outstandingorsubsistingatthetimeofthepassingofthisResolution;and

(c) anysubsequentbonusissue,consolidationorsubdivisionofShares;

(3) inexercisingtheauthorityconferredbythisResolution,theCompanyshallcomplywiththeprovisions of the Catalist Rules for the time being in force (unless such compliance has been waivedbytheSGX-ST)andtheArticlesofAssociationforthetimebeingoftheCompany;and

(4) unlessrevokedorvariedbytheCompanyinageneralmeeting,suchauthorityconferredbythisResolutionshallcontinueinforceuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompanyorthedatebywhichthenextAnnualGeneralMeetingoftheCompanyisrequiredbylawtobeheld,whicheverisearlier.

(see explanatory note 4)

8. ThatpursuanttoSection161oftheCompaniesAct,Cap.50,theDirectorsbeauthorisedtograntawards in accordance with the provisions of the ISOTeam Performance Share Plan (“ISOTeam PSP”) and to allot and issue from time to time such number of fully paid-up shares in the capital of the Company (“Shares”) as may be required to be allotted and issued pursuant to the awards granted under the ISOTeamPSP,providedalwaysthattheaggregatenumberofSharestobeallottedandissuedpursuantto the ISOTeam PSP when added to the number of Shares issued and issuable in respect of all awards grantedundertheISOTeamPSP,shallnotexceed15%ofthetotalissuedsharecapitaloftheCompanyfrom time to time. (see explanatory note 5)

(Resolution 13)

9. TotransactanyotherbusinessthatmaybeproperlytransactedatanAnnualGeneralMeeting.

BYORDEROFTHEBOARD

Wee Woon HongTan WeiCompany Secretaries

11 October 2013Singapore


Explanatory Notes:

1. MrTanEngAnnwill,uponre-electionasaDirector,remainastheChairmanoftheAuditCommitteeandamemberoftheNominatingandRemunerationCommitteesoftheCompany,andwillbeconsideredindependentforthepurposesofRule704(7)oftheCatalistRules.

2. MrSohChunBinwill,uponre-electionasaDirector,remainastheChairmanoftheRemunerationCommitteeandamemberoftheAuditandNominatingCommitteesoftheCompany,andwillbeconsideredindependentforthepurposesofRule704(7)oftheCatalistRules.

3. MsNgKhengChoowill,uponre-electionasaDirector,remainastheChairmanoftheNominatingCommitteeandamemberoftheAuditandRemunerationCommitteesoftheCompany,andwillbeconsideredindependentforthepurposesofRule704(7)oftheCatalistRules.

4. TheOrdinaryResolution12proposedinitem7above,ifpassed,willempowertheDirectors,effectiveuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany,orthedatebywhichthenextAnnualGeneralMeetingoftheCompanyisrequiredbylawtobeheldorsuchauthorityisvariedorrevokedbytheCompanyinageneralmeeting,whicheverisearlier,toissueShares,makeorgrantInstrumentsconvertibleintoSharesandtoissueSharespursuanttosuchInstruments,uptoanumbernotexceeding,intotal,100%ofthetotalnumberofissuedShares(excludingtreasuryshares),ofwhichupto50%maybeissuedotherthanonaproratabasistoshareholdersoftheCompany.

5. TheOrdinaryResolution13proposedinitem8above,ifpassed,willempowertheDirectors,effectiveuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany,orthedatebywhichthenextAnnualGeneralMeetingoftheCompanyisrequiredbylawtobeheldorsuchauthorityisvariedorrevokedbytheCompanyinageneralmeeting,whicheverisearlier,toallotandissueSharespursuanttotheawardsgrantedundertheISOTeamPSPuptoanumbernotexceeding,intotal,15%ofthetotalissuedsharecapitaloftheCompanyfromtimetotime.

Notes:

(i) AmemberoftheCompanyentitledtoattendandvoteattheabovemeetingmayappointnotmorethantwoproxiestoattendandvoteinsteadofhim/her.

(ii) Whereamemberappointstwoproxies,he/sheshallspecifytheproportionofhis/hershareholdingtoberepresentedbyeachproxyintheinstrumentappointingtheproxies.AproxyneednotbeamemberoftheCompany.

(iii) Ifthememberisacorporation,theinstrumentappointingtheproxymustbeundersealorthehandofanofficerorattorneyduly authorised.

(iv) TheinstrumentappointingaproxymustbedepositedattheRegisteredOfficeoftheCompanyatNo.57KakiBukitPlace,EunosTechpark,Singapore416231,notlessthan48hoursbeforethetimeappointedforholdingtheabovemeeting.

Notice of Annual General Meeting


ISoTEAM LTD.(Incorporated in the Republic of Singapore)(CompanyRegistrationNumber201230294M)

Proxy FormI/We,______________________________________________________________________________________________________(Name)of

_________________________________________________________________________________________________________ (Address)

beingamember/membersofISOTEAM LTD. (the “Company”) hereby appoint the Chairman of the Meeting* or:

Name AddressNRIC/Passport

NumberProportion of

Shareholdings (%)

and/or(deleteasappropriate)

Name AddressNRIC/Passport

NumberProportion of

Shareholdings (%)

as*my/our*proxy/proxiestoattendandtovotefor*me/uson*my/ourbehalfand,ifnecessarytodemandapoll,attheAnnualGeneralMeetingoftheCompanytobeheldatMHotel,81AnsonRoad,Singapore079908onMonday,28October2013at10.00a.m.andatanyadjournmentthereof.

* AMembermayappointnotmorethantwoproxiestoattendandvoteatthesameMeeting.IfyouwishtoappointsomepersonotherthantheChairmanoftheMeetingtobeyourproxy,pleasedeletethewords“ChairmanoftheMeeting”.

(Please indicate with an “X” in the spaces provided whether you wish your vote(s) to be cast for or against the Ordinary Resolutions assetoutintheNoticeofAnnualGeneralMeeting.Intheabsenceofspecificdirections,theproxy/proxieswillvoteorabstainashe/theymaythinkfit,ashe/theywillonanyothermatterarisingattheAnnualGeneralMeeting.)

No. Resolutions relating to: For AgainstOrdinary Business:

1. ToadopttheDirectors’andIndependentAuditor’sReportsandAuditedFinancialStatements2. To approve the payment of a final dividend of 1.00 cent per ordinary share3. ToapprovethepaymentofDirectors’feesof$11,166.66forthefinancialyearended30June20134. ToapprovethepaymentofDirectors’feesof$134,000forthefinancialyearending30June2014,

to be paid quarterly in arrears5. Tore-electMrNgChengLianasaDirector6. To re-elect Mr Koh Thong Huat as a Director7. To re-elect Mr Foo Joon Lye as a Director8. Tore-electMrTanEngAnnasaDirector9. To re-elect Mr Soh Chun Bin as a Director10. Tore-electMsNgKhengChooasaDirector11. Tore-appointBakerTillyTFWLLPastheindependentauditor

Special Business:12. To authorise Directors to allot and issue shares and convertible securities13. To authorise Directors to grant awards and to allot and issue shares in accordance with the provisions

of the ISOTeam Performance Share Plan

Datedthis___________dayof___________2013

Total Number of Shares held

________________________________________Signature(s)ofShareholder(s)/orCommon Seal of Corporate Shareholder

IMPORTANT: PLEASE READ NOTES OvERLEAF

Notes :

1. Please insert the total number of shares held by you. If you have shares entered against your name in the Depository Register (asdefinedinSection130AoftheCompaniesAct,Cap.50),youshouldinsertthatnumberofshares.IfyouhavesharesregisteredinyournameintheRegisterofMembers,youshouldinsertthatnumberofshares.IfyouhavesharesenteredagainstyournameintheDepositoryRegisterandtheRegisterofMembers,youshouldinserttheaggregatenumberofshares entered against your name in the Depository Register and registered in your name in the Register of Members. If no numberisinserted,theinstrumentappointingaproxyorproxiesshallbedeemedtorelatetoallthesharesheldbyyou.

2. AmemberoftheCompanyentitledtoattendandvoteatameetingoftheCompanyisentitledtoappointnotmorethantwoproxiestoattendandvoteonhis/herbehalf.AproxyneednotbeamemberoftheCompany.

3. TheinstrumentappointingaproxyorproxiesmustbedepositedattheCompany’sregisteredofficeatNo.57KakiBukitPlace,EunosTechpark,Singapore416231,notlessthan48hoursbeforethetimeappointedforthemeeting.

4. Whereamemberappointsmorethanoneproxy,he/sheshallspecifytheproportionofhis/hershareholdingstoberepresentedby each proxy.

5. Theinstrumentappointingaproxyorproxiesmustbeunderthehandoftheappointororhis/herattorneydulyauthorisedinwriting.Wheretheinstrumentappointingaproxyorproxiesisexecutedbyacorporation,itmustbeexecutedeitherunder its Common Seal or under the hand of its attorney or a duly authorised officer.

6. Whereaninstrumentappointingaproxyissignedonbehalfoftheappointorbyanattorney,theletterorpowerofattorneyoradulycertifiedcopythereofmust(failingpreviousregistrationwiththeCompany)belodgedwiththeinstrumentofproxy,failing which the instrument may be treated as invalid.

7. Acorporationwhichisamembermayauthorisebyresolutionofitsdirectorsorothergoverningbodysuchpersonasitthinksfittoactasitsrepresentativeatthemeeting,inaccordancewithSection179oftheCompaniesAct,Cap.50.

8. TheCompanyshallbeentitledtorejecttheinstrumentappointingaproxyorproxiesifitisincomplete,improperlycompleted,illegible or where the true intentions of the appointor are not ascertainable from the instructions of the appointor specified intheinstrumentappointingaproxyorproxies.Inaddition,inthecaseofamemberwhosesharesareenteredagainsthis/hernameintheDepositoryRegister,theCompanymayrejectanyinstrumentofproxylodgedifsuchmember,beingtheappointor,isnotshowntohavesharesenteredagainsthis/hernameintheDepositoryRegister48hoursbeforethetimeappointedforholdingthemeeting,ascertifiedbytheDepositorytotheCompany.

ISOTEAM LTD. No. 57 Kaki Bukit Place, Eunos Techpark, Singapore 416231 T: +65 6747 0220 F: +65 6747 0110 W: www.isoteam.sg

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