INVESTMENT PROPERTY IN CHINA

3 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Note 9 - INVESTMENT PROPERTY IN CHINA

The following table presents the Company’s investment in the property in China as of September 30, 2012. The exchange rate is based on the exchange rate as of September 30, 2012 published by the Monetary Authority of Singapore.

	Investment Date	Investment Amount			Investment Amount
		(RMB)			(U.S. Dollars)
Purchase of rental property – Property I - MaoYe	01/04/2008		5,554			882
Purchase of rental property – Property II - JiangHuai	01/06/2010		3,600			572
Purchase of rental property – Property III - Fu Li	01/04/2012		4,025			640
Gross investment in rental property			13,179			2,094
Accumulated depreciation on rental property	09/30/2012		(1,808	)		(287)
Net investment in property – China			11,371			1,807

Rental Property I – Mao Ye

In fiscal 2008, TTCQ entered into a Memorandum Agreement with MaoYe Property Ltd. to purchase an office space in Chongqing, China, for a total cash purchase price of RMB 5,554. The Company rented this property to a third party on July 13, 2008. The term of the rental agreement was five years with a monthly rental income of RMB 39, or approximately $6, for the first three years, and in the fourth year with an increase of 8% in July 2011, a monthly rental income of RMB 41, or approximately $7, and another increase of 8% in July 2012.

Property purchased from Mao Ye generated a rental income of RMB 134, or approximately $21 for the three months ended September 30, 2012 and RMB 124, or approximately $19 for the same period in the last fiscal year.

Rental Property II - JiangHuai

In fiscal 2010, the Company entered in to a Memorandum Agreement with Chongqing JiangHuai Real Estate Development Co., Ltd. to purchase eight units of commercial property in Chongqing, China for a total purchase price of RMB 3,600. TTCQ renewed its rental agreement for this property on January 8, 2011 and the rental agreement provided for a one-year renewable term with an annual rental income of RMB 720, or approximately $ 112.

The lease rental agreement of the property purchased from JiangHuai expired in January 2012 and did not generate a rental income for the three months ended September 30, 2012,. However, it generated a rental income of RMB 180 or approximately $28 for the same period in the last fiscal year. The asset was reviewed for impairment and based on the market value of the property as compared to the carrying value, it was concluded that there was no requirement to impair the property.

Other Properties III – FuLi

In fiscal 2010, TTCQ entered into a Memorandum Agreement with Chongqing Fu Li Real Estate Development Co. Ltd. (“FuLi Real Estate”) to purchase two commercial properties totaling 311.99 square meters (“office space”) located in Jiang Bei District Chongqing. The total purchase price committed and paid was RMB 4,025, or approximately $ 633.  The construction has been completed, the property was handed over during April 2012 and the documentation of the change of title is in process.

Property purchased from FuLi Real Estate was rented to a third party effective from fourth quarter of fiscal 2012 and generated a rental income in the first quarter of fiscal 2013 of RMB57, or approximately $9, for the three months ended September 30, there was no such rental income for the same period of fiscal 2012.

Summary

Total rental income for both the investment properties (Property I and Property III) in China was $30 and $47 for the three months ended September 30, 2012 and 2011, respectively.

Depreciation expenses for the investment properties in China were $26 and $ 18 for the three months ended September 30, 2012, and 2011, respectively.