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BANK COVENANT VIOLATION	3 Months Ended
Dec. 31, 2012
Notes to Financial Statements
Note 19 - BANK COVENANT VIOLATION (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)	In the fourth quarter of fiscal year 2012, the Company’s Singapore subsidiary provided for the allowance for the doubtful receivables on the loan granted to one of the subsidiaries, resulting in a decrease in net worth of the Singapore subsidiary by an amount of approximately $0.34 million (U.S.) lower than the loan covenant of Singapore dollars 12 million or approximately $9.82 million (U.S.), required by under the loan agreement with the financial institution. Hence, as at December 31, 2012, the Singapore subsidiary did not satisfy the loan covenant. The bank has the option to recall the loan, however management has sought and is awaiting a waiver from the financial institution of the relevant covenant. Since the loan was already recorded as a current liability, as it matures within 12 months from the date of the loan, there was no need for reclassification of the loan in this report. As at the date of this report, Singapore subsidiary has obtained the necessary approval from the board of directors to convert $1 million (U.S.) of the Corporate loan to equity in Singapore subsidiary, which will improve the networth.

BANK COVENANT VIOLATION

3 Months Ended

Dec. 31, 2012

Note 19 - BANK COVENANT VIOLATION (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

In the fourth quarter of fiscal year 2012, the Company’s Singapore subsidiary provided for the allowance for the doubtful receivables on the loan granted to one of the subsidiaries, resulting in a decrease in net worth of the Singapore subsidiary by an amount of approximately $0.34 million (U.S.) lower than the loan covenant of Singapore dollars 12 million or approximately $9.82 million (U.S.), required by under the loan agreement with the financial institution. Hence, as at December 31, 2012, the Singapore subsidiary did not satisfy the loan covenant. The bank has the option to recall the loan, however management has sought and is awaiting a waiver from the financial institution of the relevant covenant. Since the loan was already recorded as a current liability, as it matures within 12 months from the date of the loan, there was no need for reclassification of the loan in this report. As at the date of this report, Singapore subsidiary has obtained the necessary approval from the board of directors to convert $1 million (U.S.) of the Corporate loan to equity in Singapore subsidiary, which will improve the networth.