COMPLETE INCOME STATEMENT AND BALANCE SHEET PROJECTIONS FOR 2016 AND 2017. PLEASE SHOW WORK. SUPPLEMENTAL INFORMATION IS SHOWN BELOW IN THE EXHBITS.

PLEASE COMPLETE INCOME STATEMENT AND BALANCE SHEET PROJECTIONS FOR 2016 AND 2017 . PLEASE SHOW WORK. SUPPLEMENTAL INFORMATION IS SHOWN ABOVE IN THE EXHBITS.

Exhibit 1 Star River Electronics Ltd. Historical Income Statements Fiscal Year Ended June 30 (SGD 000) 2012 71,924 2013 80,115 2014 92,613 2015 106,042 Sales Operating expenses: Production costs and expenses Admin. and selling expenses Depreciation Total operating expenses 33,703 16,733 8,076 58,512 38,393 17,787 9,028 65,208 46,492 21,301 10,392 78,185 53,445 24,633 11,360 89,438 Operating profit Interest expense Earnings before taxes Income taxes* Net earnings 13,412 3,487 9,925 2,430 7,495 14,907 3,929 10,978 14,428 6,227 8,201 1,925 6,276 16,604 7,614 8,990 2,220 6,770 2,705 8,273 Dividends to all common shares Retentions of earnings 2,000 5,495 2,000 6,273 2,000 4,276 2,000 4,770 *The expected corporate tax rate was 24.5%. Data source: Author estimates. Exhibit 2 Star River Electronics Ltd. Historical Balance Sheets (Fiscal Year Ended June 30) (SGD 000) 2012 2013 2014 2015 Assets: Cash Accounts receivable Inventories Total current assets Gross property, plant & equipment Accumulated depreciation Net property, plant & equipment Total assets 4,816 22,148 23,301 50,265 64,611 (4,559) 60,052 110,317 5,670 25,364 27,662 58,696 80,153 (13,587) 66,566 125,262 5,090 28,078 53,828 86,996 97,899 (23,979) 73,920 160,916 5,795 35,486 63,778 105,059 115,153 (35,339) 79,814 184,873 29,002 12,315 24,608 Liabilities and stockholders' equity: Short-term borrowings (bank)' Accounts payable Other accrued liabilities Total current liabilities Long-term debt? Shareholders' equity Total liabilities and stockholders' equity 35,462 12,806 26,330 74,598 10,000 40,664 125,262 65,925 10,000 34,391 110,316 69,005 11,890 25,081 105,976 10,000 44,940 160,916 82,275 13,370 21,318 116,963 18,200 49,710 184,873 Short-term debt was borrowed from City Bank at an interest rate equal to Singaporean prime lending rate + 1.5%. Current prime lending rate was 5.35%. The benchmark 10-year Singapore treasury bond currently yielded 2.30%. 2 Two components made up the company's long-term debt. One was a SGD10 million loan that had been issued privately in 2010 to New Era Partners and to Star River Electronics Ltd., UK. This debt was subordinate to any bank debt outstanding. The second component was a SGD8.2 million public bond issuance on July 1, 2014, with a five-year maturity and a coupon of 5.75% paid semiannually. The bond had recently traded at a price of SGD97. Data source: Monetary Authority of Singapore and author estimates. Exhibit 3 Star River Electronics Ltd. Ratio Analyses of Historical Financial Statements Fiscal Year Ended June 30 2012 2013 2014 2015 Profitability Operating margin Tax rate Return on sales Return on equity Return on assets 18.6% 24.5% 10.4% 21.8% 6.8% 18.6% 24.6% 10.3% 20.3% 6.6% 15.6% 23.5% 6.8% 14.0% 3.9% 15.7% 24.7% 6.4% 13.6% 3.7% 1.12 2.02 Leverage Debt/equity ratio Debt/total capital EBIT/interest 1.13 0.53 3.85 0.53 1.76 0.64 2.32 0.67 3.79 2.18 64.0% 11.4% Asset Utilization Sales/assets Sales growth rate Assets growth rate Days sales outstanding Days payable outstanding Days inventory outstanding 57.4% 14.5% 14.9% 13.5% 65.2% 15.0% 8.0% 112.4 133.4 252.3 57.6% 15.6% 28.5% 110.7 93.3 422.6 122.1 115.6 121.7 263.0 91.3 435.6 Liquidity Current ratio Quick ratio 0.76 0.79 0.82 0.31 0.90 0.35 0.41 0.42 Data source: Author calculations. Exhibit 5 Star River Electronics Ltd. Data on Comparable Companies Market Last Annual Dividend Percent Sales from Optical Media Production 20% 95% Beta per Share Price/ Earnings Ratio 9.0 NMF 18.2 34.6 NMF Name Sing Studios, Inc. Wintronics, Inc. STOR-Max Corp. Digital Media Corp Wymax, Inc. Book Book Value Debt/Equity per Share 0.23 1.24 1.72 1.46 1.33 7.06 0.00 17.75 0.42 6.95 Price per Share 1.37 6.39 27.48 75.22 22.19 1.10 1.50 1.70 1.20 1.50 1.82 0.15 Number of Shares Outstanding (millions) 9.3 177.2 8.9 48.3 371.2 90% none none 30% 60% 1.57 Note: NMF means not a meaningful figure. This arises when a company's carnings or projected carnings are negative. Singapore's equity market risk premium could be assumed to be close to the global equity market premium of 6 percent, given Singapore's high rate of integration into global markets. Data source: Author estimates. Income Statements Forecasting Assumptions Proi. 2016 Proi. 2017 (SGD 000) 2012 2013 2014 2015 71,924 80,115 92,613 106,042 Sales Operating expenses: Production costs and expenses Admin, and selling expenses Depreciation Total operating expenses 33,703 16.733 8,076 58,512 38,393 17.787 9,028 46,492 21,301 10,392 78.185 53,445 24,633 11,360 89.438 Assumptions Sales Growth Production Costs. Sales Admin. and selling expenses/Sales Capital expenditures Depreciation expense for new equipment Dividend Interest Rate Average Tax Rate Cash to Sales Days Sales Outstanding Days Pavablc Outstanding Days Inventory Outstanding Other Current Liabs, to Sales 2016 Pearl 4,00% 50.00% 23.00% 27,300 3.900 2,000 6.85% 25% 5.5% 120 2017 Prekli 4.00% 50.00% 23.00% 27.300 3,900 2,000 6.85% 24.50% 5.50% 120 91 435 22.00% 65,208 Operating profit Interest expense Eamings before taxes Income taxes Net camings 13,412 3,487 9,925 2.430 7.495 14.907 3.929 10,978 2.705 8.273 14,428 6,227 8.201 1.925 16,604 7,614 8.990 2.220 6,770 435 22% Dividends to all common shares Retentions of camings 2,000 5,495 2.000 6,273 2,000 4.276 2,000 4,770 Balance Sheet 2012 Proi. 2016 Proi. 2017 (SGD 000) 2013 2014 2015 Assets Cash Accounts receivable Inventories Total current assets Gross property plant & equipt. Accumulated depreciation Net property plant & equipt. Total assets 5,090 28.078 53.828 86,996 4,816 22.148 23.301 50,265 64,611 (4.559) 60,052 110,317 5,670 25,364 27.662 58,696 80,153 13.587) 66.566 125.262 5.795 35,486 63.778 105,059 115,153 (35.339 79,814 184,873 97,899 (23.979) 73.920 160,916 Liabilities and stockholders' equity: Short-term borrowings (bank) Accounts payable Other accrued liabilities Total current liabilities Long-tem debt Shareholders' cquity Total liabilities & stockholders' equity 29,002 12,315 24,608 65.925 10,000 34,391 110,316 35,462 12.806 26,330 74.598 10,000 40,664 69.005 11.890 25.081 105,976 10,000 44.940 160,916 82.275 13,370 21,318 116,963 18.200 49.710 184,873 125.262 Exhibit 1 Star River Electronics Ltd. Historical Income Statements Fiscal Year Ended June 30 (SGD 000) 2012 71,924 2013 80,115 2014 92,613 2015 106,042 Sales Operating expenses: Production costs and expenses Admin. and selling expenses Depreciation Total operating expenses 33,703 16,733 8,076 58,512 38,393 17,787 9,028 65,208 46,492 21,301 10,392 78,185 53,445 24,633 11,360 89,438 Operating profit Interest expense Earnings before taxes Income taxes* Net earnings 13,412 3,487 9,925 2,430 7,495 14,907 3,929 10,978 14,428 6,227 8,201 1,925 6,276 16,604 7,614 8,990 2,220 6,770 2,705 8,273 Dividends to all common shares Retentions of earnings 2,000 5,495 2,000 6,273 2,000 4,276 2,000 4,770 *The expected corporate tax rate was 24.5%. Data source: Author estimates. Exhibit 2 Star River Electronics Ltd. Historical Balance Sheets (Fiscal Year Ended June 30) (SGD 000) 2012 2013 2014 2015 Assets: Cash Accounts receivable Inventories Total current assets Gross property, plant & equipment Accumulated depreciation Net property, plant & equipment Total assets 4,816 22,148 23,301 50,265 64,611 (4,559) 60,052 110,317 5,670 25,364 27,662 58,696 80,153 (13,587) 66,566 125,262 5,090 28,078 53,828 86,996 97,899 (23,979) 73,920 160,916 5,795 35,486 63,778 105,059 115,153 (35,339) 79,814 184,873 29,002 12,315 24,608 Liabilities and stockholders' equity: Short-term borrowings (bank)' Accounts payable Other accrued liabilities Total current liabilities Long-term debt? Shareholders' equity Total liabilities and stockholders' equity 35,462 12,806 26,330 74,598 10,000 40,664 125,262 65,925 10,000 34,391 110,316 69,005 11,890 25,081 105,976 10,000 44,940 160,916 82,275 13,370 21,318 116,963 18,200 49,710 184,873 Short-term debt was borrowed from City Bank at an interest rate equal to Singaporean prime lending rate + 1.5%. Current prime lending rate was 5.35%. The benchmark 10-year Singapore treasury bond currently yielded 2.30%. 2 Two components made up the company's long-term debt. One was a SGD10 million loan that had been issued privately in 2010 to New Era Partners and to Star River Electronics Ltd., UK. This debt was subordinate to any bank debt outstanding. The second component was a SGD8.2 million public bond issuance on July 1, 2014, with a five-year maturity and a coupon of 5.75% paid semiannually. The bond had recently traded at a price of SGD97. Data source: Monetary Authority of Singapore and author estimates. Exhibit 3 Star River Electronics Ltd. Ratio Analyses of Historical Financial Statements Fiscal Year Ended June 30 2012 2013 2014 2015 Profitability Operating margin Tax rate Return on sales Return on equity Return on assets 18.6% 24.5% 10.4% 21.8% 6.8% 18.6% 24.6% 10.3% 20.3% 6.6% 15.6% 23.5% 6.8% 14.0% 3.9% 15.7% 24.7% 6.4% 13.6% 3.7% 1.12 2.02 Leverage Debt/equity ratio Debt/total capital EBIT/interest 1.13 0.53 3.85 0.53 1.76 0.64 2.32 0.67 3.79 2.18 64.0% 11.4% Asset Utilization Sales/assets Sales growth rate Assets growth rate Days sales outstanding Days payable outstanding Days inventory outstanding 57.4% 14.5% 14.9% 13.5% 65.2% 15.0% 8.0% 112.4 133.4 252.3 57.6% 15.6% 28.5% 110.7 93.3 422.6 122.1 115.6 121.7 263.0 91.3 435.6 Liquidity Current ratio Quick ratio 0.76 0.79 0.82 0.31 0.90 0.35 0.41 0.42 Data source: Author calculations. Exhibit 5 Star River Electronics Ltd. Data on Comparable Companies Market Last Annual Dividend Percent Sales from Optical Media Production 20% 95% Beta per Share Price/ Earnings Ratio 9.0 NMF 18.2 34.6 NMF Name Sing Studios, Inc. Wintronics, Inc. STOR-Max Corp. Digital Media Corp Wymax, Inc. Book Book Value Debt/Equity per Share 0.23 1.24 1.72 1.46 1.33 7.06 0.00 17.75 0.42 6.95 Price per Share 1.37 6.39 27.48 75.22 22.19 1.10 1.50 1.70 1.20 1.50 1.82 0.15 Number of Shares Outstanding (millions) 9.3 177.2 8.9 48.3 371.2 90% none none 30% 60% 1.57 Note: NMF means not a meaningful figure. This arises when a company's carnings or projected carnings are negative. Singapore's equity market risk premium could be assumed to be close to the global equity market premium of 6 percent, given Singapore's high rate of integration into global markets. Data source: Author estimates. Income Statements Forecasting Assumptions Proi. 2016 Proi. 2017 (SGD 000) 2012 2013 2014 2015 71,924 80,115 92,613 106,042 Sales Operating expenses: Production costs and expenses Admin, and selling expenses Depreciation Total operating expenses 33,703 16.733 8,076 58,512 38,393 17.787 9,028 46,492 21,301 10,392 78.185 53,445 24,633 11,360 89.438 Assumptions Sales Growth Production Costs. Sales Admin. and selling expenses/Sales Capital expenditures Depreciation expense for new equipment Dividend Interest Rate Average Tax Rate Cash to Sales Days Sales Outstanding Days Pavablc Outstanding Days Inventory Outstanding Other Current Liabs, to Sales 2016 Pearl 4,00% 50.00% 23.00% 27,300 3.900 2,000 6.85% 25% 5.5% 120 2017 Prekli 4.00% 50.00% 23.00% 27.300 3,900 2,000 6.85% 24.50% 5.50% 120 91 435 22.00% 65,208 Operating profit Interest expense Eamings before taxes Income taxes Net camings 13,412 3,487 9,925 2.430 7.495 14.907 3.929 10,978 2.705 8.273 14,428 6,227 8.201 1.925 16,604 7,614 8.990 2.220 6,770 435 22% Dividends to all common shares Retentions of camings 2,000 5,495 2.000 6,273 2,000 4.276 2,000 4,770 Balance Sheet 2012 Proi. 2016 Proi. 2017 (SGD 000) 2013 2014 2015 Assets Cash Accounts receivable Inventories Total current assets Gross property plant & equipt. Accumulated depreciation Net property plant & equipt. Total assets 5,090 28.078 53.828 86,996 4,816 22.148 23.301 50,265 64,611 (4.559) 60,052 110,317 5,670 25,364 27.662 58,696 80,153 13.587) 66.566 125.262 5.795 35,486 63.778 105,059 115,153 (35.339 79,814 184,873 97,899 (23.979) 73.920 160,916 Liabilities and stockholders' equity: Short-term borrowings (bank) Accounts payable Other accrued liabilities Total current liabilities Long-tem debt Shareholders' cquity Total liabilities & stockholders' equity 29,002 12,315 24,608 65.925 10,000 34,391 110,316 35,462 12.806 26,330 74.598 10,000 40,664 69.005 11.890 25.081 105,976 10,000 44.940 160,916 82.275 13,370 21,318 116,963 18.200 49.710 184,873 125.262