PERS Model financial statements - AXP Solutions

Model PERS 

www.myAXP.com 

Copyright © 2007 - 2009. All rights reserved. AXP Solutions Sdn. Bhd. Printed in Malaysia. 

2009 edition 

Financial Statements

FOREWORD 

In 2007, AXP issued Model Financial Statements for Financial Reporting Standards (“FRS”) and received 

encouraging responses from customers and other Audit Practitioners. It was also suggested that we should 

prepare Model Financial Statements for Private Entity Reporting Standards (“PERS”) as well. 

In response, and as part of our mission to assist Audit Practitioners to resolve contemporary issues, we have 

therefore prepared Model Financial Statements for PERS (“Model FS (PERS)”). Our aim is to assist both our 

existing auditing clients and other Audit Practitioners and companies to audit and/or prepare statutory 

financial statements that are in compliance with prevailing financial reporting and disclosure requirements of 

the Companies Act 1965 (“CA”) and Malaysian PERS. 

The MASB issued Exposure Draft 52 Private Entity Reporting Standards in 2006, and IASB issued Exposure 

Draft of the proposed International Financial Reporting Standards for Small and Medium-sized Entities (“IFRS 

for SMEs”) in 2007. 

On 9 July 2009, IASB issued IFRS for SMEs. However, MASB’s revised PERS has not been finalised at the date 

of publishing our Model FS (PERS). Thus, our Model FS (PERS) are prepared on the basis of existing MASB 

Approved Accounting Standards for Private Entities. 

Our Model FS (PERS) are based on a fictitious group of companies called Model Group Sdn. Bhd. and its 

subsidiaries for the financial year ended 31 December 2009. We trust that you will find this publication a useful 

reference point when you are auditing or preparing statutory financial statements in compliance with PERS. 

While every effort has been made to ensure that our Model FS (PERS) demonstrates all the possible presentation 

and disclosure requirements of the PERS, it should not be used as a substitute for the laws, regulations and 

existing body of PERS. However, should you have any questions on the application of any of the statutory or 

financial reporting requirements not presented in this publication, you are welcomed to contact our Technical 

Support Unit for assistance. 

REFERENCES IN THIS PUBLICATION 

To the left of each disclosure items, references are made to CA or PERS. Requirements under the CA are shown 

with “CA”, and requirement under Ninth Schedule of the CA are shown with “CA9”. If the disclosures are 

required under both CA and PERS, references are only made to PERS. Where there are alternative applications 

allowed under the PERS, we have also presented the alternative disclosures throughout this publication for 

your reference. 

SCOPE OF THIS PUBLICATION 

Our Model FS (PERS) covers PERS issued by the MASB applicable to all accounting periods commencing on or 

after 1 January 2009, as follows: 

PERS 

Descriptions 

MASB 1 Presentation of Financial Statements 

MASB 2 Inventories 

MASB 3 Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies 

MASB 4 Research and Development Costs 

MASB 5 Cash Flow Statements 

MASB 6 The Effects of Changes in Foreign Exchange Rates

PERS 

Descriptions 

MASB 7 Construction Contracts 

MASB 9 Revenue 

MASB 10 Leases 

MASB 11 Consolidated Financial Statements and Investments in Subsidiaries 

MASB 12 Investments in Associates 

MASB 14 Depreciation Accounting 

MASB 15 Property, Plant & Equipment 

MASB 16 Financial Reporting of Interests in Joint Venture 

MASB 19 Events after the Balance Sheet Date 

MASB 20 Provisions, Contingent Liabilities & Contingent Assets 

MASB 23 Impairment of Assets 

MASB 25 Income Taxes 

MASB 27 Borrowing Costs 

MASB 29 Employee Benefits 

MASB 31 Accounting for Government Grants and Disclosure of Government Assistance 

MASB 32 Property Development Activities 

IAS 25 Accounting for Investments 

MAS 5 Accounting for Aquaculture 

However, our Model FS (PERS) does not include the presentation and disclosure requirements of: 

PERS Descriptions 

MASB 28 Discontinuing Operations 

MASB 30 Accounting and Reporting by Retirement Benefit Plans 

IAS 29 Financial Reporting in Hyperinflationary Economies 

IB-1 Preliminary and Pre-operating Expenditure 

AXP has exercised professional due care and diligence in the preparation of our Model FS (PERS). However, 

the information contained herein is intended to be a general guide. While every effort has been made to ensure 

accuracy, no liability is accepted by AXP or any member of AXP on any grounds whatsoever to any party in 

respect of any errors or omissions, or any action or omission to act a result of the information contained in our 

Model FS (PERS). 

ABOUT US 

AXP was formed in 2005 by a team of qualified accountants with years of extensive experience in both the 

public practice and commercial sector. Through extensive research and development since 2001 under both its 

predecessor and AXP, we have successfully developed in-house a wide range of IT tools and solutions for Audit 

Practitioners. Besides being able to optimise the business value of IT in the audit practice, our products also 

possess enhanced features and updates that are in full compliance with the requirements of the prevailing FRS 

and PERS.

ABOUT THE EDITORIAL TEAM 

The editorial team of this publication consists of both AXP’s Technical Adviser and Business Partners, who 

jointly possess a vast experience in financial reporting and wide exposure to the accounting industry in general. 

The profile of each team member is as follows: 

Keith Farmer, FCA, B.A., Technical Adviser of AXP, holds an honours degree in Economics and became a 

Fellow of the Institute Chartered of Accountants in England and Wales (“ICAEW”) in January 1983. He taught 

in London at the London School of Accountancy and Emile Woolf College and at the University of Essex until 

he came to Asia in early 1994. He has been based in Asia ever since. 

His specialist subject is Financial Accounting. He has conducted courses for both students and practitioners in 

many parts of the world, including the UK, Malaysia, Singapore, Hong Kong, Kenya, and Mauritius for both 

private colleges and the Association of Chartered Certified Accountants (“ACCA”). His students have 

consistently won numerous prizes in the ACCA examinations. 

Whilst Keith is justifiably proud of individual student performance, his key aim is to convey a fundamental 

understanding of the basic principles and concepts which underlie financial accounting and a detailed 

knowledge and application of the requirements of accounting standards. This is based on the three core 

principles of education: instruction, demonstration and experience. Understanding is important, in fact it is a 

prerequisite to developing the level of knowledge required to sit examinations with confidence and inspires 

individuals to achieve far more than they ever expected in far less time than they ever anticipated. 

In furtherance of achieving his aim, Keith has recently embarked upon a three point strategy. Firstly, he is 

writing a series of books, primarily aimed at students, covering consolidation and accounting standards which 

contain numerous progressive worked examples. Secondly, he is currently engaged in developing a series of 

DVD's which, together with the books, will form an integral part of a new co-ordinated learning package. 

Finally, in the near future, this learning package will be extended to a structured continuing professional 

development programme. 

Ivan Er Soon Lock, C.A.(M), FCCA, B.Com(NZ), is a member of the Malaysian Institute of Accountants (“MIA”) 

and a fellow member of ACCA. Ivan first joined Deloitte KassimChan (“DKC”) in 1997 as an audit assistant, 

and subsequently became an Audit Manager. He left DKC in 2003 to join Horwath, another international public 

practice. At Horwath, he was soon promoted to become an Audit Principal. 

His experience includes managing the audit and the corporate finance functions and the setting up of the 

business improvement division of the practice, assisting companies listing on the stock exchange by providing 

consultancy services on listing exercise and financial management, advising on good accounting and internal 

control systems to a wide range of companies, provision of technical training on FRS and PERS and conducting 

due-diligence review on companies in Malaysia and China. Currently, he is also an independent director of a 

company listed on the MESDAQ Market of the Bursa Malaysia. 

Eric Chia Kok Haur, C.A.(M), C.A.(NZ), B.Com(Hons), is a member of the MIA and New Zealand Institute of 

Chartered Accountants (“NZICA”). Eric started his career as an audit assistant with DKC in 1997. He was an 

Assistant Audit Manager when he left the firm to join KPMG Singapore in 2000. He was also an Assistant Audit 

Manager at KPMG, where he served until 2003. From KPMG, he moved on to H W Kuah & Co., another public 

practice in Singapore, as the Audit Manager. 

Eric is well-versed with the financial reporting environment of both Malaysia and Singapore. In addition, as he 

has spearheaded major audit assignments in China, he is also familiar with China financial reporting 

requirements. His experience includes managing audit and due diligence assignments, monitoring the 

budgetary function of the practice, provision of advisory services for corporate exercises and corporate 

governance matters, preparation and review of published financial statements, including those of significantly 

large groups of companies, and conducting training on technical subjects.

CONTACT US 

AXP Technical Support Unit 

Corporate Headquarters 

83A, Jalan Emas Satu, Taman Sri Skudai, 81300 Johor Bahru, Johor, Malaysia. 

Tel: 1300-882 AXP (1300-882 297) or 607-557 5722 

Fax: 607-557 7697 

Central Malaysia 

C-2-16, SME Technopreneur Centre Cyberjaya, 2270, Jalan Usahawan 2, 63000 Cyberjaya, Selangor, Malaysia. 

Tel: 1300-882 AXP (1300-882 297) or 603-8315 6168 

Fax: 603-8315 6198 

Singapore 

Blk 4008, Ang Mo Kio Ave 10, #01-10A, TechPlace 1, Singapore 569625. 

Tel: 65-6876 7297 

Fax: 65-6454 7660 

support@myAXP.com 

1300-882-AXP (1300-882-297) 

Copyright © 2007 - 2009. All rights reserved. AXP Solutions Sdn. Bhd. 

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by 

any means, electronic, mechanical, photocopying, recording, scanning, or otherwise without the prior written 

permission of the publisher. However, written permission need not be obtained from the publisher if it is used 

internally within the Firm.

PERS Ref. 

1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A) 

(Incorporated in Malaysia) 

AND ITS SUBSIDIARIES 

TABLE OF CONTENTS 

Report of the Directors 1 – 5 

Statement by the Directors 6 

Statutory Declaration 6 

Independent Auditors’ Report to the Members 7 – 8 

Page No. 

Financial Statements 

Balance Sheets 9 – 10 

Income Statements – Expenses Classified by Function 11 

Income Statements – Expenses Classified by Nature 12 

Statements of Changes in Equity 13 – 14 

Cash Flow Statements – Indirect Method 15 – 16 

Notes to the Financial Statements 

General Information 17 

Basis of Preparation 17 

Significant Accounting Policies 17 – 26 

Property, Plant and Equipment 27 – 30 

Investment Property 30 – 31 

Land Held for Development 31 

Goodwill 32 

Other Intangible Assets 33 – 34 

Subsidiaries 34 – 36 

Investment in Associates 36 – 38 

Investment in Jointly-Controlled Entities 38 – 39 

Other Investments 39 

Deferred Tax Assets/Liabilities 40 – 41 

Property Development Costs 41 – 42 

Inventories 42 

Trade and Other Receivables 43 

Gross Amount Due from Customers 43 

Fixed Deposits with Licensed Banks 44 

Cash and Bank Balances 44 

Trade and Other Payables 44 

Gross Amount Due to Customers 45 

Hire Purchase and Finance Lease Payables 45 

Bank Overdrafts and Other Bank Borrowings 46 

Provisions 46 – 47 

Share Capital 47 – 48 

Share Premium 48 

Revaluation Reserves 48 

Translation Reserves 49





Page No. 

Retained Profits 49 

Retirement Benefit Obligation 49 – 51 

Revenue 52 

Profit Before Tax 52 – 55 

Income Tax Expense 55 – 56 

Dividends 56 

Acquisition of Subsidiary 57 – 58 

Disposal of Subsidiary 59 

Purchases of Property, Plant and Equipment 59 

Cash and Cash Equivalents 60 

Commitments 60 – 61 

Contingent Liabilities 61 – 62 

Events Subsequent to the Balance Sheet Date 62 

Authorisation for Issue of the Financial Statements 62





CA Ref. 

REPORT OF THE DIRECTORS 

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009 

The directors hereby submit their report together with the audited financial statements of the 

Group and the Company for the financial year ended 31 December 2009. 

169(6)(b) PRINCIPAL ACTIVITIES 

The principal activities of the Company are that of investment holding and provision of 

management services to its subsidiaries. The principal activities of the subsidiaries are described 

in Note 9 to the Financial Statements. There have been no significant changes in the nature of the 

activities during the financial year. 

169(6)(c) RESULTS 

169(6)(p) 

THE GROUP THE COMPANY 

RM RM 

Profit for the financial year before minority interest 6,998,600 171,854 

Less: Minority interest (156,807) - 

Net Profit for the financial year 

6,841,793 

171,854 

In the opinion of the directors, the results of the operations of the Group and the Company during 

the financial year have not been substantially affected by any item, transaction or event of a 

material and unusual nature. 

169(6)(h) DIVIDENDS 

On 1 April 2009, the Company paid a 10% final tax exempt dividend (total dividend of 

RM1,105,020) in respect of the previous financial year. The net dividend per share was 10 sen. 

On 31 August 2009, the directors declared a 10% interim tax exempt dividend (total dividend of 

RM1,132,020) in respect of the current financial year. The dividend was paid to the shareholders 

registered on 31 October 2009. The net dividend per share was 10 sen. 

The directors have proposed a 10% final tax exempt dividend in respect of the current financial 

year. The dividend is subject to approval by the shareholders at the forthcoming Annual General 

Meeting and has not been included as a liability in the financial statements. Total dividend 

payable is RM1,132,020, and the net dividend per share is 10 sen. 

If the Company did not declare dividends: 

No dividends have been paid or declared since the end of the previous financial year. The 

directors do not recommend that a dividend to be paid in respect of the current financial year. 

169(6)(d) RESERVES AND PROVISIONS 

There were no material transfers to or from reserves or provisions except as disclosed in the 

Financial Statements. 

1







CA Ref. 

169(6)(e) SHARES AND DEBENTURES 

During the financial year, the authorised share capital of the Company has been increased to 

50,000,000 ordinary shares by the creation of 10,000,000 ordinary shares of RM1 each. 

During the financial year, the Company has issued the following shares: 

Date of Issue No. of Shares Issued Issue Price Purposes 

6 March 2009 20,000 RM2.70 Increase working capital 

1 June 2009 250,000 RM4.00 Part finance the acquisition of a subsidiary 

The new shares issued rank pari passu in respect of the distribution of dividends and repayment of 

capital with the existing shares. 

The Company did not issue any debentures during the financial year. 

If the Company did not issue any new shares or debentures: 

The Company did not issue any new shares or debentures during the financial year. 

169(11), (12) SHARE OPTIONS 

No options have been granted by the Company to any parties during the financial year to take up 

unissued shares of the Company. 

No shares have been issued during the financial year by virtue of the exercise of any option to take 

up unissued shares of the Company. At the end of the financial year, there were no unissued 

shares of the Company under options. 

169(6)(a) DIRECTORS 

The directors who held office since the date of the last report are: 

Ser L. T. 

Lian K. K. 

Mohd. bin R. Z. 

Gi J. Q. 

Ran H. P. 

Hija bin B. T. 

Yan D. V. 

Wen M. X. 

The L. P. (Appointed on 1 July 2009) 

2





CA Ref. 

169(6)(f) 

169(8) 



DIRECTORS’ BENEFITS 

During and at the end of the financial year, no arrangements subsisted to which the Company or 

its subsidiaries is a party, with the object or objects of enabling directors of the Company to acquire 

benefits by means of the acquisition of shares in, or debentures of, the Company or any other body 

corporate. 

Since the end of the previous financial year, no director has received or become entitled to receive a 

benefit (other than a benefit included in the aggregate amount of emoluments received or due and 

receivable by the directors shown in the financial statements or the fixed salary of a full-time 

employee of the Company) by reason of a contract made by the Company or a related corporation 

with the director or with a firm of which the director is a member, or with a company in which the 

director has a substantial financial interest. 

169(6)(g) DIRECTORS’ INTERESTS 

According to the register of directors’ shareholding, the interests of directors in office at the end of 

the financial year in the ordinary shares of the Company and its related corporations during the 

financial year are as follows: 

No. of Ordinary Shares of RM1 each 

At 1.1.2009 

(or date of 

appointment) 

Bought 

Sold 

At 

31.12.2009 

Direct Interest in holding company – 

Be Competent Sdn. Bhd. 

Ordinary Shares 

Ser L. T. 1,000,000 - - 1,000,000 

Lian K. K. 600,000 - - 600,000 

Mohd. bin R. Z. 400,000 - - 400,000 

Gi J. Q. 200,000 - - 200,000 

Direct Interest in a subsidiary – 

AXP Property Sdn. Bhd. 


The L. P. 20,000 - (20,000) - 

Deemed Interest in the Company 


Ser L. T. 7,000,000 500,000 - 7,500,000 

Lian K. K. 7,000,000 500,000 - 7,500,000 

Mohd. bin R. Z. 7,000,000 500,000 - 7,500,000 

The L. P. - 250,000 - 250,000 

3





CA Ref. 

169(6)(i) 

169(6)(k) 

169(6)(j) 

169(6)(l)(i) 

169(6)(l)(ii) 

169(6)(o) 



No. of Ordinary Shares of RM1 each 

At 1.1.2009 

(or date of 

appointment) 

Bought 

Sold 

At 

31.12.2009 

Direct Interest in the Company 


Ser L. T. 4,145 359 - 4,504 

Lian K. K. 3,273 458 - 3,731 

Mohd. bin R. Z. 40,000 4,000 (2,000) 42,000 

Ran H. P. 2,041 1,076 (246) 2,871 

Hija bin B. T. 50,010 6,781 - 56,791 

The L. P. 216,000 100,000 - 316,000 

None of the other directors in office at the end of the financial year held any shares in the 

Company or in any related corporations during the financial year ended 31 December 2009. 

OTHER STATUTORY INFORMATION 

Before the income statements and the balance sheets of the Group and the Company were made 

out, the directors took reasonable steps: 

(a) to ascertain that proper action had been taken in relation to the writing-off of bad debts and 

the making of allowance for doubtful debts, and have satisfied themselves that all known 

bad debts had been written-off and that adequate allowance had been made for doubtful 

debts; and 

(b) to ensure that any current assets which were unlikely to be realised at their book values in 

the ordinary course of business have been written down to their estimated realisable values. 

As of the date of this report, the directors are not aware of any circumstances: 

(a) which would render the amount written off for bad debts or the amount of the allowance for 

doubtful debts inadequate to any substantial extent in the financial statements of the Group 

and the Company; or 

(b) which would render the values attributed to current assets in the financial statements of the 

Group and the Company misleading; or 

(c) which have arisen which render adherence to the existing method of valuation of assets or 

liabilities of the Group and the Company misleading or inappropriate; or 

(d) not otherwise dealt with in this report or financial statements which would render any 

amount stated in the financial statements of the Group and the Company misleading. 

4





CA Ref. 

169(6)(m) 

169(6)(n) 

169(6)(q) 



As of the date of this report, there does not exist: 

(a) any charge on the assets of the Group and the Company which has arisen since the end of 

the financial year and secures the liability of any other person; or 

(b) any contingent liability of the Group and the Company which has arisen since the end of the 

financial year. 

No contingent or other liability has become enforceable, or is likely to become enforceable within 

the period of twelve months after the end of the financial year which, in the opinion of the 

directors, will or may substantially affect the ability of the Group and the Company to meet its 

obligations as and when they fall due. 

In the opinion of the directors, no item, transaction or event of a material and unusual nature has 

arisen in the interval between the end of the financial year and the date of this report which is 

likely to affect substantially the results of operations of the Group and the Company for the 

succeeding financial year. 

169(10) HOLDING COMPANY 

The Company is a subsidiary of Be Competent Sdn. Bhd., a company incorporated in Malaysia, 

which is also regarded by the directors as the ultimate holding company. 

AUDITORS 

The retiring auditors, Messrs. Auditors & Co., have indicated their willingness to be re-appointed 

in accordance with Section 172(2) of the Companies Act, 1965. 

Signed on behalf of the Board 

in accordance with a resolution of the directors, 

Ser L T 

Ser L. T. 

Lian K K 

Lian K. K. 

Kuala Lumpur 

31 January 2010 

5





CA169(15) STATEMENT BY THE DIRECTORS 

Pursuant to Section 169 (15) of the Companies Act, 1965 

The directors of Model Group Sdn. Bhd. state that, in their opinion, the financial statements set 

out on page 9 to 62 are drawn up in accordance with the provisions of the Companies Act, 1965 

and the MASB Applicable Approved Accounting Standards for Private Entities in Malaysia so as to 

give a true and fair view of the state of affairs of the Group and the Company as at 31 December 

2009 and of the results of their businesses and the cash flows of the Group and the Company for 

the financial year ended on that date. 

Signed on behalf of the Board 

in accordance with a resolution of the directors, 

Ser L T 

Ser L. T. 

Lian K K 

Lian K. K. 

Kuala Lumpur 


CA169(16) STATUTORY DECLARATION 

Pursuant to Section 169 (16) of the Companies Act, 1965 

I, Gi J. Q., the director primarily responsible for the financial management of Model Group Sdn. 

Bhd., do solemnly and sincerely declare that the financial statements set out on page 9 to 62 are, in 

my opinion, correct and I make this solemn declaration conscientiously believing the same to be 

true, and by virtue of the provisions of the Statutory Declarations Act, 1960. 

Subscribed and solemnly declared by ) 

the above named Gi J. Q. at ) Gi J Q 

KUALA LUMPUR on 31 January 2010 ) 

Before me, 

Commissioner for Oaths 

__________________________________ 

COMMISSIONER FOR OATHS 

6

RPG 4 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF 

MODEL GROUP SDN. BHD. (Company No.: 12345678-A) 


CA Ref. 

174(2)(a) 

Report on the Financial Statements 

We have audited the financial statements of Model Group Sdn. Bhd., which comprise the balance 

sheets as at 31 December 2009 of the Group and the Company, and the income statements, 

statements of changes in equity and cash flow statements of the Group and the Company for the 

financial year then ended, and a summary of significant accounting policies and other explanatory 

notes, as set out on pages 9 to 62. 

Directors’ Responsibility for the Financial Statements 

The directors of the Company are responsible for the preparation and fair presentation of these 

financial statements in accordance with Private Entity Reporting Standards and the Companies 

Act, 1965 in Malaysia. This responsibility includes: designing, implementing and maintaining 

internal control relevant to the preparation and fair presentation of financial statements that are 

free from material misstatement, whether due to fraud or error; selecting and applying appropriate 

accounting policies; and making accounting estimates that are reasonable in the circumstances. 

Auditors’ Responsibility 

Our responsibility is to express an opinion on these financial statements based on our audit. We 

conducted our audit in accordance with approved standards on auditing in Malaysia. Those 

standards require that we comply with ethical requirements and plan and perform the audit to 

obtain reasonable assurance whether the financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the financial statements. The procedures selected depend on our judgment, 

including the assessment of risks of material misstatement of the financial statements, whether due 

to fraud or error. In making those risk assessments, we consider internal control relevant to the 

Company’s preparation and fair presentation of the financial statements in order to design audit 

procedures that are appropriate in the circumstances, but not for the purpose of expressing an 

opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating 

the appropriateness of accounting policies used and the reasonableness of accounting estimates 

made by the directors, as well as evaluating the overall presentation of the financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinion. 

Opinion 

In our opinion, the financial statements have been properly drawn up in accordance with Private 

Entity Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair 

view of the financial position of the Group and the Company as at 31 December 2009 and of their 

financial performance and cash flows for the financial year then ended. 

7

CA Ref. 

174(2)(b) 

174(2)(c)(ii) 

174(2)(c)(iii) 

174(2)(c)(iv) 

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF 

MODEL GROUP SDN. BHD. (Company No.: 12345678-A) – Cont’d 


Report on Other Legal and Regulatory Requirements 

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the 

following: 

(a) In our opinion, the accounting and other records and the registers required by the Act to 

be kept by the Company and its subsidiaries have been properly kept in accordance with 

the provisions of the Act. 

(b) We have considered the financial statements and the auditors’ reports of all the 

subsidiaries of which we have not acted as auditors, which are indicated in Note 9 to the 

Financial Statements. 

(c) We are satisfied that the financial statements of the subsidiaries that have been 

consolidated with the Company’s financial statements are in form and content appropriate 

and proper for the purposes of the preparation of the financial statements of the Group 

and we have received satisfactory information and explanations required by us for those 

purposes. 

(d) The audit reports on the financial statements of the subsidiaries did not contain any 

qualification or any adverse comment made under Section 174(3) of the Act. 

Other Matters 

This report is made solely to the members of the Company, as a body, in accordance with Section 

174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume 

responsibility to any other person for the content of this report. 

Auditors & Co. Hu G E 

Auditors & Co. 

(AF – 99999) 

Chartered Accountants 

Kuala Lumpur 


Hu G. E. 

No. 9999/88/10 (J) 

Partner of the Firm 

8





1.8(a) 

1.46(b),(c) 

2009 2008 2009 2008 

1.46(d),(e) Note RM RM RM RM 

1.53 NON CURRENT ASSETS 

1.66(a) Property, plant and equipment 4 9,716,982 

1.67 Investment property 5 6,305,303 

32.51 Land held for development 6 965,719 

1.66(b) Goodwill 7 4,790,350 

1.66(b) Other intangible assets 8 4,163,426 

1.66(d) Subsidiaries 9 - 

1.66(d),12.38 Investment in associates 10 1,484,315 

1.66(d) 

Investment in jointly-controlled 

entities 11 1,205,535 

1.66(d) Other investments 12 437,765 

1.66(i) Deferred tax assets 13 10,985 

1.53 CURRENT ASSETS 

29,080,380 

32.51(c) Property development costs 14 1,191,144 

1.66(e) Inventories 15 393,798 

1.66(f) Trade and other receivables 16 1,036,917 

7.43(a) Gross amount due from customers 17 101,398 

32.50(d)(i) Accrued billings 31,008 

1.66(d) Other investments 12 96,802 

1.66(g) Fixed deposits with licensed banks 18 206,625 

1.66(g) Cash and bank balances 19 97,305 

1.53 CURRENT LIABILITIES 

3,154,997 

1.66(h) Trade and other payables 20 1,880,738 

7.43(b) Gross amount due to customers 21 3,211 

32.50(d)(ii) Progress billings 228,605 

1.66(i) Current tax liabilities 34,598 

1.66(k) 

BALANCE SHEETS 

AS AT 31 DECEMBER 2009 

Hire purchase and finance lease 

payables 22 56,966 

1.66(g) Bank overdrafts 23 280,316 

1.66(k) Other bank borrowings 23 2,397,013 

1.66(j) Provisions 24 163,358 

5,044,805 

NET CURRENT ASSETS / (LIABILITIES) (1,889,808) 

27,190,572 


6,538,764 

4,506,445 

102,622 

3,828,841 

4,222,640 

- 

1,240,119 

650,153 

610,291 

31,164 

21,731,039 

137,830 

770,136 

1,271,984 

108,183 

65,374 

155,781 

271,791 

215,132 

2,996,211 

1,113,302 

1,453 

74,075 

68,272 

53,476 

324,225 

2,095,412 

165,268 

3,895,483 

(899,272) 

20,831,767 

3,267 

- 

- 

- 

- 

12,319,649 

23,093 

- 

19,370 

- 

12,365,379 

- 

- 

3,471,675 

- 

- 

5,068 

- 

128 

3,476,871 

340,478 

- 

- 

- 

- 

36,068 

195,501 

- 

572,047 

2,904,824 

15,270,203 

4,070 

- 

- 

- 

- 

11,335,974 

23,093 

- 

17,952 

- 

11,381,089 

- 

- 

5,415,978 

- 

- 

52,090 

- 

214 

5,468,282 

329,113 

- 

- 

- 

- 

44,396 

152,939 

- 

526,448 

4,941,834 

16,322,923 

9





1.8(a) 

1.46(b),(c) 

2009 2008 2009 2008 


FINANCED BY: 

1.66(m) CAPITAL AND RESERVES 

1.66(m) Share capital 25 11,320,200 

1.66(m) Share premium 26 1,242,500 

1.66(m) Revaluation reserves 27 642,254 

1.66(m) Translation reserves 28 943,706 

1.66(m) Retained profits 29 8,969,699 

Shareholders' Equity 23,118,359 

1.66(l) Minority interest 2,461,253 

1.53 NON CURRENT LIABILITIES 

1.66(i) Deferred tax liabilities 13 1,174,856 

1.66(k) 

BALANCE SHEETS - Cont'd 

AS AT 31 DECEMBER 2009 

Hire purchase and finance lease 

payables 22 91,622 

1.66(k) Other bank borrowings 23 247,290 

1.66(j) Provisions 24 30,449 

1.67 Retirement benefit obligation 30 66,743 

1,610,960 

27,190,572 


11,050,200 

458,500 

557,002 

685,440 

4,357,983 

17,109,125 

2,304,446 

929,279 

105,812 

265,977 

44,888 

72,240 

1,418,196 

20,831,767 

11,320,200 

1,242,500 

- 

- 

2,707,503 

15,270,203 

- 

- 

- 

- 

- 

- 

- 

15,270,203 

11,050,200 

458,500 

- 

- 

4,772,689 

16,281,389 

- 

- 

- 

41,534 

- 

- 

41,534 

16,322,923 

10





1.8(b) 

1.46(b),(c) 

INCOME STATEMENTS - Expenses Classified by Function 


2009 2008 2009 2008 


1.75(a) Revenue 31 23,743,683 

1.82 Cost of sales (12,966,796) 

1.75 Gross profit 10,776,887 

1.82 Other income 352,383 

1.82 Distribution costs (618,208) 

1.82 Administrative expenses (2,140,037) 

1.82 Other expenses (764,448) 

1.75(b) Profit from operations 7,606,577 

1.75(c) Finance costs (234,750) 

1.75(d),12.39 Share of profit of associates 275,354 

Share of profit of jointly-controlled 

entities 631,116 

1.75 Profit before tax 32 8,278,297 

1.75(e) Income tax expense 33 

- Company and subsidiaries (1,154,309) 

- share of tax expense in associates (49,654) 

- share of tax expense in jointlycontrolled 

entities (75,734) 

Profit after tax 

(1,279,697) 

6,998,600 

Minority interest (156,807) 

1.75(i) Profit For The Financial Year 6,841,793 


19,326,112 

(11,656,606) 

7,669,506 

345,597 

(663,922) 

(1,014,755) 

(625,671) 

5,710,755 

(256,549) 

89,460 

499,541 

6,043,207 

(1,149,001) 

(19,681) 

(74,931) 

(1,243,613) 

4,799,594 

(129,530) 

4,670,064 

381,809 

- 

381,809 

107,585 

- 

(265,406) 

(13,761) 

210,227 

(30,504) 

- 

- 

179,723 

(7,869) 

- 

- 

(7,869) 

171,854 

- 

171,854 

291,722 

- 

291,722 

117,737 

- 

(251,828) 

(2,060) 

155,571 

(24,262) 

- 

- 

131,309 

- 

- 

- 

- 

131,309 

- 

131,309 

11





1.8(b) 

1.46(b),(c) 

2009 2008 2009 2008 


1.75(a) Revenue 31 23,743,683 

1.80 Other income 336,627 

1.80 

INCOME STATEMENTS - Expenses Classified by Nature 


19,326,112 

345,597 

381,809 

107,585 

Changes in inventories of finished 

goods and work in progress 268,393 (493,001) - 

1.80 Raw materials and consumable used (46,289) 

7.40(b) Contract costs recognised (1,352,588) 

32.50(b) Property development costs recognised (8,010,989) 

1.80 Staff costs (490,010) 

1.80,14.15(c) Depreciation expense (1,228,514) 

1.80 Amortisation charges (1,832,375) 

Impairment losses recognised (40,007) 

Impairment losses reversed 15,756 

1.80 Other expenses (3,757,110) 

1.75(b) Profit from operations 7,606,577 

1.75(c) Finance costs (234,750) 

1.75(d),12.39 Share of profit of associates 275,354 

Share of profit of jointly-controlled 

entities 631,116 

1.75 Profit before tax 32 8,278,297 

1.75(e) Income tax expense 33 

- Company and subsidiaries (1,154,309) 

- share of tax expense in associates (49,654) 

- share of tax expense in jointlycontrolled 

entities (75,734) 

Profit after tax 

(1,279,697) 

6,998,600 

Minority interest (156,807) 

1.75(i) Profit For The Financial Year 6,841,793 


(68,739) 

(1,166,701) 

(5,145,983) 

(342,001) 

(876,403) 

(1,503,955) 

(16,187) 

- 

(4,347,984) 

5,710,755 

(256,549) 

89,460 

499,541 

6,043,207 

(1,149,001) 

(19,681) 

(74,931) 

(1,243,613) 

4,799,594 

(129,530) 

4,670,064 

- 

- 

- 

(58,975) 

(469) 

- 

- 

- 

(219,723) 

210,227 

(30,504) 

- 

- 

179,723 

(7,869) 

- 

- 

(7,869) 

171,854 

- 

171,854 

291,722 

117,737 

- 

- 

- 

- 

(38,305) 

(492) 

- 

- 

- 

(215,091) 

155,571 

(24,262) 

- 

- 

131,309 

- 

- 

- 

- 

131,309 

- 

131,309 

12





1.8(c) 

1.46(b),(c) 

1.86(e),(f) 

STATEMENTS OF CHANGES IN EQUITY 


Share 

Capital 

Share 

Premium 

Revaluation 

Reserves 

Translation 

Reserves 

Retained 

Profits Total 

1.46(d),(e) THE GROUP Note RM RM RM RM RM RM 

Balance at 1 January 2008 11,045,200 

1.86(b) Revaluation of landed property - 

1.86(b) Exchange differences on translation of foreign entities - 

1.86(a) Profit for the financial year - 

1.86(d) Dividends 34 - 

1.86(d) Issue of shares 25 & 26 5,000 

Balance at 31 December 2008 11,050,200 

1.86(b) Revaluation of landed property - 

1.86(b) Exchange differences on translation of foreign entities - 




Transfer to retained profits on disposal - 


450,000 

- 

- 

- 

- 

8,500 

458,500 

- 

- 

- 

- 

784,000 

- 

1,242,500 

553,718 

3,284 

- 

- 

- 

- 

557,002 

92,215 

- 

- 

- 

- 

(6,963) 

642,254 

454,049 

- 

231,391 

- 

- 

- 

685,440 

- 

258,266 

- 

- 

- 

- 

943,706 

1,896,959 

- 

- 

4,670,064 

(2,209,040) 

- 

4,357,983 

- 

- 

6,841,793 

(2,237,040) 

- 

6,963 

8,969,699 

14,399,926 

3,284 

231,391 

4,670,064 

(2,209,040) 

13,500 

17,109,125 

92,215 

258,266 

6,841,793 

(2,237,040) 

1,054,000 

13 

- 

23,118,359





1.8(c) 

1.46(b),(c) 

1.86(e),(f) 

STATEMENTS OF CHANGES IN EQUITY - Cont'd 


Share 

Capital 

Share 

Premium 

Retained 

Profits Total 

1.46(d),(e) THE COMPANY Note RM RM RM RM 

Balance at 1 January 2008 11,045,200 









450,000 

- 

- 

8,500 

458,500 

- 

- 

784,000 

1,242,500 

6,850,420 

131,309 

(2,209,040) 

- 

4,772,689 

171,854 

(2,237,040) 

- 

2,707,503 

18,345,620 

131,309 

(2,209,040) 

13,500 

16,281,389 

171,854 

(2,237,040) 

1,054,000 

15,270,203 

14





1.8(d) 

1.46(b),(c) 

CASH FLOW STATEMENTS 

2009 2008 2009 2008 


5.10, 5.18(b) CASH FLOWS FROM OPERATING ACTIVITIES 

5.18(b) Profit before tax 8,278,297 

5.20(b),(c) Adjustments for: 


Allowance for doubtful debts 9,438 

Amortisation charges 1,832,375 

Bad debts written off 2,512 

Defined benefits plan expense 37,693 

Depreciation of property, plant and equipment 1,228,514 

Dividend income (1,718) 

Gain on disposal of investment property (2,659) 

Gain on disposal of land held for development (14) 

Gain on disposal of other investments (64,242) 

(Gain)/Loss on disposal of subsidiary (1,459) 

(Gain)/Loss on disposal of property, plant and equipment (760) 

Impairment losses 40,007 

Interest expense 234,750 

Interest income (657) 

Inventories written down to net realisable value 31,250 

Provision for legal costs 347 

Provision for warranties 113,718 

Reversal of allowance for doubtful debts (348) 

Reversal of impairment losses (15,756) 

Reversal of inventories written down (14,694) 

Reversal of provision for warranties (72,911) 

Share of profit of associates (275,354) 

Share of profit of jointly-controlled entities (631,116) 

Unrealised loss on foreign exchange 90,459 

Operating profit before changes in working capital 10,817,672 

5.20(a) Decrease/(increase) in property development costs 347,396 

5.20(a) Decrease in bank balances held under H.D.A. 119,905 

Decrease/(increase) in inventories 811,629 

5.20(a) Decrease in trade and other receivables 83,436 

Increase/(decrease) in trade and other payables 746,796 

Cash generated from operations 12,926,834 

Contributions to defined benefits plan (43,190) 

5.35 Income taxes paid (969,178) 

5.31 Interest paid (235,464) 

Interest received 657 

Utilisation of provisions (57,503) 

Net cash from operating activities 11,622,156 


6,043,207 

13,578 

1,503,955 

1,081 

31,270 

876,403 

(2,105) 

(173) 

- 

(15,914) 

- 

(1,088) 

16,187 

256,549 

(718) 

45,303 

- 

91,634 

(732) 

- 

(21,600) 

(31,695) 

(89,460) 

(499,541) 

79,948 

8,296,089 

(302,533) 

23,019 

(130,215) 

179,842 

(504,553) 

7,561,649 

(41,540) 

(765,940) 

(256,917) 

718 

(60,078) 

6,437,892 

179,723 

- 

- 

- 

- 

469 

- 

- 

- 

(24,474) 

293,051 

(152) 

- 

30,504 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

479,121 

- 

- 

- 

1,944,303 

11,365 

2,434,789 

- 

(7,869) 

(30,504) 

- 

- 

2,396,416 

131,309 

15 

- 

- 

- 

- 

492 

- 

- 

- 

5,011 

- 

- 

28 

24,262 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

161,102 

- 

- 

- 

2,056,317 

(69,504) 

2,147,915 

- 

- 

(24,262) 

- 

- 

2,123,653





1.8(d) 

1.46(b),(c) 

CASH FLOW STATEMENTS - Cont'd 


2009 2008 2009 2008 


5.10, 5.16 CASH FLOWS FROM INVESTING ACTIVITIES 

Acquisition of land held for development (215,536) 

5.39 Acquisition of subsidiary, net of cash acquired 35 (1,299,748) 

Advance to associates (18,496) 

5.39 Disposal of subsidiary, net of cash disposed off 36 423,004 

5.31 Dividend income 1,718 

Interest paid (325) 

Proceeds from disposal of investment property 48,325 

Proceeds from disposal of land held for development 405 

Proceeds from disposal of other investments 633,737 

Proceeds from disposal of property, plant and equipment 18,739 

Purchases of investment property (1,000,000) 

Purchases of other intangible assets, net of grant (1,380,954) 

Purchases of other investments (337,990) 

5.43 Purchases of property, plant and equipment 37 (3,708,324) 

Net cash used in investing activities (6,835,445) 

5.10, 5.17 CASH FLOWS FROM FINANCING ACTIVITIES 

5.31 Dividends paid (2,237,040) 

Issuance of shares 54,000 

5.23 Proceeds from other short term borrowings 10,921,954 

Proceeds from term loans 495,043 

Repayments of hire purchase and finance lease (409,908) 

5.23 Repayments of other short term borrowings (11,418,268) 

Repayments of term loans (2,211,628) 

Net cash used in financing activities (4,805,847) 

Net (decrease)/increase in cash and cash equivalents (19,136) 

Cash and cash equivalents at beginning of financial year (17,323) 

Cash and cash equivalents at end of financial year 38 (36,459) 


(115,822) 

- 

(50,782) 

- 

2,105 

(642) 

4,000 

- 

473,561 

31,450 

(45,089) 

(1,501,746) 

(632,780) 

(594,536) 

(2,430,281) 

(2,209,040) 

13,500 

9,950,329 

594,032 

(506,969) 

(10,469,787) 

(1,329,049) 

(3,956,984) 

50,627 

(67,950) 

(17,323) 

- 

(500,000) 

- 

223,274 

- 

- 

- 

- 

180,078 

1,329 

- 

- 

(110,000) 

(677) 

(205,996) 

(2,237,040) 

54,000 

4,950,965 

45,909 

- 

(4,879,198) 

(116,814) 

(2,182,178) 

8,242 

(44,182) 

(35,940) 

16 

- 

- 

- 

- 

- 

- 

- 

- 

37,842 

586 

(513) 

- 

(135,712) 

(1,088) 

(98,885) 

(2,209,040) 

13,500 

3,950,491 

32,012 

- 

(3,753,950) 

(45,059) 

(2,012,046) 

12,722 

(56,904) 

(44,182)





1.8(e) 

1.46(b),(c) 

1.102(a) 

1.102(b) 

1.102(c) 

1.102(d) 

1.46(d) 

1.91(a) 

NOTES TO THE FINANCIAL STATEMENTS 


1. GENERAL INFORMATION 

The Company is a private limited company incorporated and domiciled in Malaysia. The 

registered office and principal place of business is located at 83A, Jalan Emas 1, Taman Sri Skudai, 

81300 Johor Bahru, Johor. 

The principal activities of the Company are that of investment holding and provision of 

management services to its subsidiaries. The principal activities of the subsidiaries are described in 

Note 9. There have been no significant changes in the nature of the activities during the financial 

year. 

The Company is a subsidiary of Be Competent Sdn. Bhd., a company incorporated in Malaysia, 

which is also regarded by the directors as the ultimate holding company of the Company. 

The number of employees of the Group and the Company as at 31 December 2009 are 35 and 3 

(2008: 30 and 2) respectively. 

The financial statements of the Group and the Company are reported in Ringgit Malaysia (RM). 

2. BASIS OF PREPARATION 

The financial statements have been prepared in accordance with the MASB Applicable Approved 

Accounting Standards for Private Entities in Malaysia and the provisions of the Companies Act, 

1965. 

3. SIGNIFICANT ACCOUNTING POLICIES 

1.97(a) The financial statements have been prepared on the historical cost basis, except for the revaluation 

of certain assets. The principal accounting policies adopted are set out below: 

11.11 

11.6 

11.44, 

11.47(c) 

11.26 

11.21 

15.78(a) 

Consolidation 

The consolidated financial statements incorporate the financial statements of the Company and its 

subsidiaries. Subsidiaries are entities controlled by the Company. Control exists when the 

Company has the power to govern the financial and operating policies of an entity so as to obtain 

benefits from its activities. 

Investments in subsidiaries are stated in the Company’s financial statements at cost, less 

impairment losses, if any. 

The results of subsidiaries acquired or disposed of during the financial year are included in the 

consolidated financial statements from the acquisition date or up to the effective date of disposal, 

where appropriate. Consolidated financial statements are prepared using uniform accounting 

policies for like transactions and other events in similar circumstances. 

All intragroup balances, transactions, income and expenses are eliminated in full on consolidation. 

Property, Plant and Equipment 

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated 

impairment losses, if any, except for freehold land and buildings. 

17





1.8(e) 

1.46(b),(c) 

15.78(a) 

15.34 

15.43 

15.44 

15.45 

14.15(a),(b) 

15.78(b),(c) 

15.59 

15.74 



Assets stated at valuation 

Freehold land and buildings are stated at their revalued amount, being its fair value at the date of 

revaluation, less subsequent accumulated depreciation and subsequent impairment losses, if any. 

Revaluations are made with sufficient regularity to ensure that the carrying amount does not 

differ materially from that which would be determined using fair value at the balance sheet date. 

Any revaluation increase arising from the revaluation is credited to revaluation reserves account, 

except when the increase is recognised in the income statements to the extent that it reverses a 

revaluation decrease of the same asset previously recognised in income statements. Any 

revaluation decrease arising from the revaluation is recognised in income statements, except when 

the decrease is debited to the revaluation reserves account to the extent of any credit balance 

existing in the revaluation reserves account in respect of that asset. Revaluation surplus is 

transferred directly to retained profits when the asset is retired or disposed of. 

Except for freehold land and assets under construction, depreciation is provided on a straight-line 

method so as to write off the cost or valuation of the assets over their estimated useful lives, as 

follows: 

Buildings 50 years 

Plant and machinery 10 years 

Motor vehicles 5 years 

Equipment, furniture and fittings 3 ~ 5 years 

The residual values and the useful lives of assets, if significant, are reviewed at each balance sheet. 

The gain or loss arising from the disposal or retirement of an asset, determined as the difference 

between the net disposal proceeds, if any, and the carrying amount of the item, are recognised in 

income statements. 

Depreciation of an asset begins when it is ready for its intended use. 

IAS25 Investment Property 

Investment property, principally comprising of property held to earn rentals or for capital 

appreciation or both, are held for long term rental yields and are not occupied by the Group. 

Investment property is carried at market value determined annually by external independent 

valuers. 

Any revaluation increase arising from the revaluation is credited to revaluation reserves account, 

except when the increase is recognised in the income statements to the extent that it reverses a 

revaluation decrease of the same asset previously recognised in income statements. Any 

revaluation decrease arising from the revaluation is recognised in income statements, except when 

the decrease is debited to the revaluation reserves account to the extent of any credit balance 

existing in the revaluation reserves account in respect of that asset. Revaluation surplus is 

transferred directly to retained profits when the asset is retired or disposed of. 

18





1.8(e) 

1.46(b),(c) 

32.50(a) 

4.30(a) 



Property Development Activities 

Land held for property development is carried at cost less any accumulated impairment losses 

and is classified as non-current asset where no development activities are carried out or where 

development activities are not expected to be completed within the normal operating cycle. 

Property development costs comprise all costs that are directly attributable to development 

activities including costs associated with the acquisition of land, costs related directly to a specific 

property development activity and costs attributable to the development activities in general and 

can be allocated to the project. 

When the development and construction activities have commenced and the financial outcome of 

the development activities can be reliably estimated, property development revenue will be 

recognised for the development unit sold and determined by reference to the stage of completion 

of the development activity at the balance sheet date. Stage of completion is determined based on 

the proportion that property development costs incurred for work performed to date bear to the 

estimated total property development costs. 

When the outcome of a property development activity cannot be estimated reliably, property 

development revenue is recognised only to the extent of property development costs incurred that 

it is probable will be recoverable and property development costs are recognised as an expense in 

the financial year in which they are incurred. 

An expected loss on the property development activity is recognised as an expense immediately 

(including costs to be incurred over the defects liability period). 

Inventories of unsold completed development units are stated at the lower of cost and net 

realisable value. Net realisable value represents the estimated selling price less all estimated costs 

of completion and costs to be incurred in marketing, selling and distribution. 

Goodwill 

Goodwill arising on the acquisition of a subsidiary, being the excess of the cost of the business 

combination over the Group’s interest in the net fair value of the identifiable assets and liabilities, 

is initially measured at cost and recognised as an asset. Goodwill is subsequently measured at 

cost less accumulated amortisation and accumulated impairment losses, if any. 

Goodwill is amortised using the straight line method over its estimated useful life of 15 years. 

On disposal of a subsidiary, the attributable amount of goodwill is included in the determination 

of the income statements on disposal. 

Goodwill arising on the acquisition of an associate or an equity-accounted jointly controlled entity 

is included within the carrying amount of the investment and is assessed for impairment as part of 

the investment. 

Other Intangible Assets 

Expenditure incurred on research activities is recognised in income statements as and when it is 

incurred. 

19





1.8(e) 

1.46(b),(c) 

4.30(b),(c) 

12.3 

12.6 

12.6 

12.22 

12.31 

16.3 

16.50 



Other intangible assets with finite useful lives are stated at cost less accumulated amortisation and 

accumulated impairment losses, if any. Other intangible assets are amortised on a straight-line 

method over their estimated useful lives, as follows: 

Software development costs 5 years 

Patents and trademarks 10 years 

Investments in Associates 

An associate is an entity over which the Group has significant influence and that is neither a 

subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the 

financial and operating policy decisions of the investee but is not control or joint control over 

those policies. 

Investments in associates are stated in the Company’s financial statements at cost, less impairment 

losses, if any. 

Investments in associates are accounted for in the Group’s consolidated financial statements using 

equity method until the date the Group ceases to have significant influence over the associates. 

Under the equity method, the investments in associates are initially recognised at cost and the 

carrying amount is increased or decreased to recognise the investor’s share of the results of the 

investees after the date of acquisition, less impairment losses, if any. Losses of associates in excess 

of the Group’s interest in the associates, include any long-term interests that form part of the 

Group’s net investment in the associates, are not recognised. 

Profits or losses on transactions entered between the Group and the associates are eliminated to 

the extent of the Group’s interest in the associates. 

Investments in Joint Ventures 

A joint venture is a contractual arrangement whereby the Group and other parties undertake an 

economic activity that is subject to joint control, where the strategic financial and operating 

decisions relating to the activity require the unanimous consent of the parties sharing control. 

Investment in jointly-controlled entities are accounted for in the Group’s consolidated financial 

statements using equity method until the date the Group ceases to have joint control. 

IAS 25 Other Investments 

Other non-current investments are stated at cost less impairment losses, if any. Other current 

investments are stated at the lower of cost and net realisable value. 

23 Impairment of Assets 

At each balance sheet date, the Group and the Company assess whether there is any indication 

that an asset may be impaired. If any such indication exists, the recoverable amounts of the assets 

are estimated. 

When it is not possible to estimate the recoverable amount of an individual asset, the Group and 

the Company estimate the recoverable amount of the cash-generating unit to which the asset 

belongs. 

20





1.8(e) 

1.46(b),(c) 

6.9 

6.11(a) 

6.11(b),(c) 

6.17 

6.39 

6.47 



Recoverable amount is the higher of the net selling price and value in use. In assessing value in 

use, the estimated future cash flows are discounted to their present value using a pre-tax discount 

rate that reflects current market assessments of the time value of money and the risks specific to 

the asset. 

If the recoverable amount of an asset (or a cash-generating unit) is less than its carrying amount, 

an impairment loss is recognised to reduce the carrying amount to its recoverable amount. An 

impairment loss for a cash-generating unit is firstly allocated to reduce the carrying amount of 

goodwill allocated to the cash-generating unit, and then, to the other non-current assets of the unit 

pro rata on the basis of the carrying amount of each non-current asset in the unit. 

An impairment loss is recognised immediately in income statements, unless it reverses a previous 

revaluation, in which case it is treated as a revaluation decrease. 

An impairment loss recognised in prior financial periods for an asset, other than goodwill, is 

reversed if there has been a change in the estimates used to determine the asset’s recoverable 

amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does 

not exceed the carrying amount that would have been determined, net of depreciation if no 

impairment loss had been recognised, and is recognised immediately in income statements, unless 

it reverses a previous revaluation, in which case it is treated as a revaluation increase. 

Foreign Currency ~ Foreign Currency Transactions 

Transactions in foreign currencies are initially translated at the exchange rate at the dates of the 

transactions. 

At the balance sheet date, foreign currency monetary assets and liabilities are translated into 

Ringgit Malaysia at the exchange rate ruling at that date. Exchange differences arising on the 

settlement or translation of monetary items are recognised in income statements. 

Non-monetary assets and liabilities measured at historical cost in a foreign currency are translated 

using exchange rates at the date of the transactions. Non-monetary assets and liabilities measured 

at fair value in a foreign currency are translated using exchange rates at the date when the fair 

value was determined. 

Foreign Currency ~ Net Investment in a Foreign Operation 

Exchange differences arising on the monetary items that, in substance, forms part of the 

Company’s net investment in a foreign operation are recognised in the Company’s income 

statements. In the consolidated financial statements, such exchange differences are reclassified to 

equity only if the monetary items are denominated in either the reporting currency of the 

Company or the foreign operation. Deferred exchange differences are recognised in income 

statements on disposal of the investment. 

Foreign Currency ~ Foreign Entity 

Assets and liabilities of a foreign entity are translated into Ringgit Malaysia using the exchange 

rate ruling at the balance sheet date. Income and expenses are translated using exchange rate 

approximates to those ruling at the date of the transactions. All resulting exchange differences are 

recognised in equity. 

21





1.8(e) 

1.46(b),(c) 



6.48 On the disposal of a foreign entity, cumulative deferred exchange differences are recognised in the 

consolidated income statements as part of the gain or loss on sale. 

2.37(a) 

MAS5.38 

(b) 

7.40(c) 

7.40(d) 

7.40(c) 

7.40(c) 

5.36 

Inventories 

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct 

materials, direct labour costs and overheads, where applicable, that have been incurred in 

bringing the inventories to their present location and condition. Cost is calculated using the Firstin 

First-out method. Net realisable value represents the estimated selling price less all estimated 

costs of completion and costs to be incurred in marketing, selling and distribution. 

Aquaculture inventories are valued at the lower of cost and net realisable value. Aquaculture 

inventories are inventories of the identifiable cost units and consist of the aggregate costs of 

materials, direct farm labour and production overheads and other costs incurred in nurturing the 

species cultured to their saleable condition. 

Net realisable value is estimated based on the most reliable evidence available at the time the 

estimates are made as to what the inventories are expected to realise upon completion of the cycle. 

Receivables 

Receivables are measured at anticipated realisable values. Appropriate allowances for estimated 

irrecoverable amounts are recognised in income statements. 

Construction Contract 

When the outcome of a construction contract activity can be estimated reliably, contract revenue 

and contract costs associated with the construction contract are recognised as revenue and 

expenses respectively by reference to the stage of completion of the contract activity at the balance 

sheet date. Stage of completion is determined based on the proportion that contract costs incurred 

for work performed to date bear to the estimated total contract costs. 

When the outcome of a construction contract cannot be estimated reliably, contract revenue are 

recognised only to the extent of contract costs incurred that it is probable will be recoverable and 

contract costs are recognised as an expense in the financial year in which they are incurred. 

Contract revenue also includes variations in contract work, claims and incentive payments to the 

extent that it is probable that they will result in revenue and they can be measured reliably. 

An expected loss on the construction contract is recognised as an expense immediately. 

Cash and Cash Equivalents 

5.45 Cash and cash equivalents comprise cash and bank balances, short-term deposits and other shortterm, 

highly liquid investments that are readily convertible to a known amount of cash with an 

insignificant risk of changes in value. For the purpose of the cash flow statements, cash and cash 

equivalents are presented net of bank overdrafts. 

Payables 

Payables are stated at cost which is the consideration to be paid in the future for goods and 

services rendered. 

22





1.8(e) 

1.46(b),(c) 

10.8 

10.22 

10.28 



Interest-Bearing Liabilities 

Interest-bearing liabilities are recognised initially at cost, and subsequently measured at amortised 

cost with any difference between proceeds and the settlement and redemption value recognised in 

income statements over the period of borrowing on an effective interest basis. 

Hire Purchase and Finance Lease Payables 

Hire purchase and leases of property, plant and equipment, which are classified as finance lease, 

where substantially all the risks and benefits incidental to the ownership of the assets, but not the 

legal ownership, are transferred to the Group and the Company. 

Assets under hire purchase and finance lease are depreciated on a straight-line basis over the 

shorter of the hire and lease terms or their useful lives. Hire purchase and finance lease interest is 

recognised as an expense in income statements over the lease period so as to give a constant 

periodic rate of interest on the outstanding liability at the end of each accounting period. 

All other leases are classified as operating lease and the lease rentals are recognised as an expense 

in income statements on a straight-line basis over the lease periods. 

Provisions 

20.15 A provision is recognised when the Group and the Company have a present obligation as a result 

of a past event and it is probable that an outflow of resources embodying economic benefits will 

be required to settle the obligation. Provisions are recognised based on a reliable estimate of the 

amount of the obligation. 

31.40 

31.30 

Equity 

Equity issued by the Company is recognised at the proceeds received, net of direct issue costs. 

Government Grants 

Government grants are recognised when there is reasonable assurance that the Group and the 

Company will comply with the conditions attaching to them and the grants will be received. 

Government grants are recognised as income on a systematic basis over the periods necessary to 

match them with the related costs which they are intended to compensate. 

Government grants related to assets are presented in the balance sheets by setting up the grant as 

deferred income while government grant related to income is presented as a credit in income 

statements separately. 

Alternative presentation format for government grants: 

Government grants related to assets are presented in the balance sheets by deducting the grant in 

arriving at the carrying amount of the asset, while government grants related to income are 

deducted against the related expenses. 

8.36(a) Revenue 

Revenue from sales of goods is recognised when the significant risks and rewards of ownership 

have been transferred to the buyer. Revenue is measured at the fair value of the consideration 

received or receivable, net of discounts and taxes applicable to the revenue. 

23





1.8(e) 

1.46(b),(c) 

MAS5.38(a) 

29.11 

29.12 

29.15 

29.18 



Revenue from rendering of services is measured by reference to the stage of completion of the 

transaction at the balance sheet date. 

Interest income is recognised using the effective interest method, and accrued on a time basis. 

Royalty income, licence fee income and property rental income are recognised on an accrual basis 

in accordance with the substance of the relevant agreement. 

Dividend income is recognised when the shareholder’s rights to receive payment is established. 

Income of aquaculture products is determined based on the project approach by matching costs 

and revenues of each individual production cycle. Revenue is recognised at the point of sale. 

Short-term Employment Benefits 

Short-term employment benefits, such as wages, salaries and social security contributions, are 

recognised as an expense in the financial year in which the associated services are rendered by 

employees of the Group and the Company. 

Short-term accumulating compensated absences, such as paid annual leave, are recognised when 

the employees render services that increase their entitlement to future compensated absences. 

Non-accumulating compensated absences, such as sick and medical leaves, are recognised when 

the absences occur. 

The expected cost of accumulating compensated absences is measured as the additional amount 

expected to be paid as a result of the unused entitlement that has accumulated at the balance sheet 

date. 

Profit-sharing and bonus plans are recognised when the Group and the Company have a present 

legal or constructive obligation to make payments as a result of past events and a reliable estimate 

of the obligation can be made. A present obligation exists when, and only when the Group and 

the Company have no realistic alternative but to make the payments. 

Defined Contribution Plan 

29.46 Contributions to the statutory pension scheme are recognised as an expense in income statements 

in the financial year to which they relate. 

29.125(a) 

29.125(a) 

Defined Benefit Plan 

The Group operates a funded Retirement Benefit Plan (the Plan) for its eligible employees. 

Contributions to the Plan are made quarterly and are charged to income statements so as to 

spread the cost of the Plan over the employees’ working lives in the Group. 

The Group’s obligations under the Plan are determined based on triennial actuarial valuations 

where the amounts of benefits that the employees have earned in return for their services in the 

current and prior financial years are estimated. The present values of the Plan’s obligations and 

the related current service and any past service cost are determined using the Projected Unit 

Credit Method. 

24





1.8(e) 

1.46(b),(c) 

29.93 

29.97 

29.55 

29.114 

29.138 

29.145 



Actuarial gains and losses are recognised as income or expense if the net cumulative unrecognised 

actuarial gains and losses at the end of the previous reporting period exceed 10% of the greater of 

the present value of the obligation and the fair value of Plan assets at the balance sheet date. 

Past service cost is recognised as an expense on a straight-line basis over the average period until 

the benefits become vested. To the extent that the benefits are already vested immediately 

following the introduction of, or changes to, the Plan, the past service cost is recognised 

immediately. 

The Plan recognised in the balance sheets is the net total of the present value of the Plan adjusted 

for unrecognised actuarial gains or losses, unrecognised past service cost, minus the fair value of 

Plan assets. Any asset resulting from the computation is stated at the lower of the amount 

determined or the total of any cumulative unrecognised actuarial losses and past service cost, and 

the present value of available refunds and reductions in future contribution to the Plan. 

Gains or losses on the curtailment or settlement of the Plan are recognised when the curtailment or 

settlement occurs. 

Termination Benefits 

Termination benefits are recognised when the Group and the Company are demonstrably 

committed to terminate the employment of the employees before the normal retirement date or 

provide termination benefits as a result of an offer made for voluntary redundancy. 

Termination benefits in relation to the offer made for voluntary redundancy is measured based on 

the number of employees expected to accept the offer. 

Borrowing costs 

27.29(a) Borrowing costs that are directly attributable to the acquisition, construction or production of a 

qualifying asset are capitalised as part of the cost of the asset when the expenditures for the asset 

and borrowing costs are being incurred, and activities that are necessary to prepare the asset for 

its intended use or sale are in progress. Capitalisation of borrowing costs is suspended during any 

extended periods in which active development is interrupted and ceased when substantially all 

the activities necessary to prepare the qualifying asset for its intended use or sale are complete. 

All other borrowing costs are recognised as an expense in income statements in the financial year 

in which they are incurred. 

Income Tax 

25 Income tax comprises of current tax and deferred tax. 

Current tax and deferred tax are charged or credited to equity if the tax relates to items that are 

credited or charged directly to equity. 

Current tax liabilities are measured based on the amounts expected to be paid, using the tax rates 

that have been enacted or substantially enacted by the balance sheet date. 

25





1.8(e) 

1.46(b),(c) 



Deferred tax is provided in full, using the liability method, on temporary differences which are the 

differences between the carrying amount in the financial statements and the corresponding tax 

base of an asset or liability at the balance sheet date. 

Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets 

are recognised for all deductible temporary differences to the extent that it is probable that taxable 

profit will be available against which the deductible temporary differences can be utilised. 

Deferred tax liabilities and assets are not recognised if the temporary differences arise from 

goodwill and for initial recognition of assets or liabilities that affect neither accounting profit nor 

taxable profit. Deferred tax liabilities and assets reflect the tax consequences that would follow 

from the manner in which the entity expects to recover or settle the carrying amounts of its assets 

and liabilities and are measured using the tax rates that have been enacted or substantially 

enacted by the balance sheet date. 

The carrying amount of the deferred tax assets are reviewed at each balance sheet date, and the 

carrying amount is reduced to the extent that it is no longer probable that sufficient taxable profit 

will be available to allow all or part of the asset to be utilised. The reduction is reversed to the 

extent that it becomes probable that sufficient taxable profit will be available. 

26





1.8(e) 

1.46(b),(c) 



4. PROPERTY, PLANT AND EQUIPMENT 

Freehold 

Land# Buildings # 

Plant and 

Machinery 

Motor 

Vehicles 

Equipment, 

Furniture and 

Fittings 

Properties 

Under 

Construction * Total 

THE GROUP RM RM RM RM RM RM RM 

Cost / Valuation 

15.78(d) At 1 January 2009 1,429,010 

15.78(e)(i) Additions 59,178 

15.78(e)(iii) Acquistion of a subsidiary 65,073 

15.78(e)(iv) Revaluation surplus 97 

15.78(e)(ii) Disposals (102) 

15.78(e)(ii) Disposal of a subsidiary (3,215) 

15.78(e)(ix) Reclassification - 

IAS25 Transfer from investment properties - 

IAS25 Transfer to investment properties - 

15.78(e)(viii) Exchange differences on consolidation 123 

15.78(d) At 31 December 2009 1,550,164 

Accumulated depreciation and impairment losses 

15.78(d) At 1 January 2009 - 

15.78(e)(v) Impairment losses recognised - 

15.78(e)(iv) Reversal of impairment losses - 

15.78(e)(ii) Disposals - 

15.78(e)(ii) Disposal of a subsidiary - 

15.78(e)(vii) Depreciation charge - 

15.78(e)(viii) Exchange differences on consolidation - 

15.78(d) At 31 December 2009 - 

Carrying Amounts 

15.78(d) At 31 December 2008 1,429,010 

15.78(d) At 31 December 2009 1,550,164 

15.78(a) # At 2009 valuation 

* Disclosure requirement under MASB 15.79(c) 

15.78(e) Note: Comparative information is not required to be presented 

2,549,121 

2,000,393 

59,605 

342 

(650) 

(65,913) 

134,607 

543,924 

- 

349 

5,221,778 

436,905 

- 

- 

(130) 

(34,978) 

176,854 

87 

578,738 

2,112,216 

4,643,040 

1,546,950 

238,652 

- 

- 

(239) 

(1,324,041) 

- 

- 

- 

- 

461,322 

1,247,864 

2,046 

(303) 

(120) 

(903,048) 

39,985 

- 

386,424 

299,086 

74,898 

2,303,021 

1,594,500 

295,950 

- 

(32,012) 

(932,085) 

- 

- 

- 

65,954 

3,295,328 

1,068,521 

- 

- 

(20,194) 

(569,403) 

878,774 

32,910 

1,390,608 

1,234,500 

1,904,720 

769,504 

45,960 

79,605 

- 

(32,011) 

(76,904) 

- 

- 

- 

3,201 

789,355 

211,247 

- 

- 

(26,591) 

(54,921) 

132,901 

636 

263,272 

558,257 

526,083 

905,695 

325,943 

- 

- 

- 

- 

(134,607) 

- 

(78,954) 

- 

1,018,077 

- 

- 

- 

- 

- 

- 

- 

- 

905,695 

1,018,077 

9,503,301 

4,264,626 

500,233 

439 

(65,014) 

(2,402,158) 

- 

543,924 

(78,954) 

69,627 

12,336,024 

2,964,537 

2,046 

(303) 

(47,035) 

(1,562,350) 

1,228,514 

33,633 

2,619,042 

6,538,764 

9,716,982 

27





1.8(e) 

1.46(b),(c) 



THE COMPANY 

Cost 

Equipment, 

Furniture 

and Fittings 

RM 

15.78(d) At 1 January 2009 5,351 

15.78(e)(i) Additions 677 

15.78(e)(ii) Disposals (1,133) 

15.78() At 31 December 2009 4,895 

Accumulated depreciation 

15.78(d) At 1 January 2009 1,281 

15.78(e)(ii) Disposals (122) 

15.78(e)(vii) Depreciation charge 469 

15.78(d) At 31 December 2009 1,628 

Carrying amounts 

15.78(d) At 31 December 2008 4,070 

15.78(d) At 31 December 2009 3,267 

15.78(e) Note: Comparative information is not required to be presented. 

23.119 In 2009, the Group carried out a review of the recoverable amount of the Group’s assets located in 

United Kingdom following an unexpected change in marketing plan. Based on the assessment, an 

impairment loss of RM2,046 (2008: RM Nil) was recognised during the financial year. These assets 

are used by the software segment. The recoverable amounts of the assets have been determined 

based on their value in use. The discount rate used for the current estimate was 6%. The discount 

rate used when the recoverable amount of these assets was previously estimated in 2008 was 5%. 

15.82 Freehold land and buildings of the Group were revalued at 31 December 2009 by Messrs. Valuer & 

Co., an independent professional valuer, based on the open market values on an existing use basis. 

The revaluation surplus of RM439 (2008: RM3,459) has been transferred to revaluation reserves 

accounts of the Group. 

15.82 Had the freehold land and buildings been carried at historical cost less accumulated depreciation 

and accumulated impairment losses, if any, the carrying amount of the freehold land and buildings 

of the Group would have been as follows: 


2009 2008 2009 2008 

RM RM RM RM 

Freehold land 1,264,180 1,143,123 - - 

Buildings 3,781,201 1,859,101 - - 

5,045,381 

3,002,224 

- 

28 

-





1.8(e) 

1.46(b),(c) 

15.84 

15.85 

15.79(a) 

10.26(a) 

15.79(a) 



If the entity availed itself for the transitional provision when the MASB first adopted IAS 16 PPE: 

Freehold land and buildings of the Group and the Company were revalued in 1995 by an 

independent professional valuer based on the open market values on an existing use basis. As the 

Group and the Company have availed themselves of the transitional provision when the MASB 

first adopted IAS 16 Property, Plant and Equipment, the freehold land and buildings are stated on 

the basis of their 1995 valuations and do not adopted a policy of revaluation. 

Due to the absence of historical records, the Group and the Company are not able to determine the 

carrying amounts of the property, plant and equipment that would have been recognised had the 

assets been carried under the cost model. 

The carrying amounts of the property, plant and equipment under hire purchase and finance lease 

of the Group are as follows: 


2009 2008 2009 2008 

RM RM RM RM 

Plant and machinery 28,594 92,021 - - 

Motor vehicles 487,490 143,932 - - 

516,084 

235,953 

The Group has pledged the following property, plant and equipment to licensed banks to secure 

banking facilities granted to the Group: 


2009 2008 2009 2008 

RM RM RM RM 

Freehold land 49,390 65,138 - - 

Buildings 60,302 87,194 - - 

109,692 

152,332 

The entities are encouraged, but not required, to disclose the following information: 

15.83(a) The carrying amounts of temporarily idle property, plant and equipment of the Group are as 

follows: 


2009 2008 2009 2008 

RM RM RM RM 


Equipment, furniture and fittings 5,400 6,800 - - 

15,800 

44,900 

- 

- 

- 

29 

- 

- 

-





1.8(e) 

1.46(b),(c) 



15.83(b) The gross carrying amounts of fully depreciated property, plant and equipment of the Group are as 

follows: 


2009 2008 2009 2008 

RM RM RM RM 



48,100 

100,100 

15.83(c) The carrying amounts of property, plant and equipment of the Group which have been retired from 

active use are as follows: 


2009 2008 2009 2008 

RM RM RM RM 



95,000 

93,000 

15.83(d) The fair value of property, plant and equipment of the Group, which are measured using cost 

model amounting to RM2,256,900, is RM3,360,500. 

IAS 25 5. INVESTMENT PROPERTY 

- 

- 

THE THE 

GROUP COMPANY 

RM RM 

At 1 January 2008 4,464,418 - 

Additions 45,089 - 

Disposals (3,827) - 

Exchange gain on consolidation 765 - 

At 31 December 2008 4,506,445 - 

Additions 1,000,000 - 

Acquisition of a subsidiary 1,217,852 - 

Revaluation surplus 91,798 - 

Disposals (45,666) - 

Exchange loss on consolidation (156) - 

Transfer from property, plant and equipment 78,954 - 

Transfer to property, plant and equipment (543,924) - 

At 31 December 2009 

6,305,303 

30 

- 

- 

-





1.8(e) 

1.46(b),(c) 



The fair value of the investment property of the Group at 31 December 2009 is determined by a 

valuation carried out by Messrs. Valuer & Co., an independent professional valuer, based on the 

open market values on an existing use basis. Messrs. Valuer & Co. have relevant recognised 

professional qualification and have recent experience in valuing properties in the relevant 

locations. 

The Group has pledged investment property with carrying amount of RM3,983,000 (2008: 

RM1,198,000) to licensed banks to secure banking facilities granted to the Group. 

If the entity availed itself for the transitional provision when MASB first adopted IAS 16 PPE: 

Investment property of the Group was revalued in 1995 by an independent professional valuer 

based on the open market values on an existing use basis. As the Group has availed themselves of 

the transitional provision when MASB first adopted IAS 16 Property, Plant and Equipment, the 

investment property is stated on the basis of their 1995 valuations and does not adopt a policy of 

revaluation. 

6. LAND HELD FOR DEVELOPMENT 


2009 2008 2009 2008 

RM RM RM RM 

32.51(a) 

Cost 

At beginning of the financial year 117,180 60,327 - - 

32.51(b)(i) Additions 215,536 115,822 - - 

32.51(b)(i) Acquisition of a subsidiary 1,495,060 - - - 

32.51(b)(ii) Disposals (391) - - - 

32.51(b)(iii) Transfer to property development costs (861,666) (58,969) - - 

32.51(a) At end of the financial year 965,719 117,180 - - 

Accumulated impairment losses 

32.51(a) At beginning of the financial year (14,558) - - - 

32.51(b)(iv) Impairment losses recognised - (14,558) - - 

32.51(b)(iv) Reversal of impairment losses 14,558 - - - 

32.51(a) At end of the financial year - (14,558) - - 

32.51(a) 


At end of the financial year 

965,719 

102,622 

32.52(b) Land held for development with carrying amounts of RM657,890 (2008: RM102,622) were pledged 

to licensed banks to secure banking facilities granted to the Group. 

- 

31 

-





1.8(e) 

1.46(b),(c) 



7. GOODWILL 

THE GROUP RM 

Cost 

At 1 January 2008 6,701,026 

Exchange loss on consolidation (119,218) 

At 31 December 2008 6,581,808 

Exchange gain on consolidation 205,128 

Acquisition of a subsidiary 1,397,252 

Eliminated on disposal of a subsidiary (176,930) 

At 31 December 2009 8,007,258 

Amortisation 

At 1 January 2008 2,310,308 

Exchange gain on consolidation (28,392) 

Amortisation charge 471,051 

At 31 December 2008 2,752,967 

Exchange loss on consolidation 34,691 

Amortisation charge 391,289 

At 31 December 2009 3,178,947 

Impairment losses 

At 1 January 2009 - 

Impairment losses recognised 37,961 

At 31 December 2009 37,961 

Carrying amount 



3,828,841 

4,790,350 

32





1.8(e) 

1.46(b),(c) 



4.30(e) 

8. OTHER INTANGIBLE ASSETS 

Software 

Development Patents and 

Costs Trademarks Total 

THE GROUP RM RM RM 

31.40(b) 

31.40(c) 

Cost 

At 1 January 2008 5,204,374 364,867 5,569,241 

Acquisition of a subsidiary - - - 

Exchange gain on consolidation - 159 159 

Additions 1,403,020 98,726 1,501,746 


Additions net of government grant 

receipt of RM230,000 for software 

6,607,394 463,752 7,071,146 

development costs 

1,304,054 76,900 1,380,954 

Exchange gain on consolidation - 43 43 

Disposals - - - 

At 31 December 2009 7,911,448 540,695 8,452,143 

Amortisation and Impairment Losses 

At 1 January 2008 1,724,307 90,274 1,814,581 

Impairment losses recognised - 986 986 

Exchange loss on consolidation - 35 35 

Amortisation charge 986,504 46,400 1,032,904 

At 31 December 2008 2,710,811 137,695 2,848,506 

Exchange loss on consolidation - 20 20 

Impairment losses reversed - (895) (895) 

Disposals - - - 

Amortisation charge 1,387,016 54,070 1,441,086 

At 31 December 2009 4,097,827 190,890 4,288,717 




3,896,583 

3,813,621 

326,057 

349,805 

4,222,640 

4,163,426 

Government grant related to assets is deducted in arriving at the carrying amount of the assets 

During the financial year, a subsidiary obtained a government grant under the Research & 

Development Grant Scheme up to a maximum of RM1 million on the approved research and 

development expenditures incurred. 

The government grant granted is subject to the fulfilment of the condition that the percentage of the 

knowledge workers should attain 20% of the total workforce of the said subsidiary by 30 June 2010. 

The subsidiary has, subsequent to the financial year, achieved this condition. 

33





1.8(e) 

1.46(b),(c) 



31.25 The reconciliation of the amortisation before and after deduction of related government grant 

recognised as income is as follows: 


2009 2008 2009 2008 

RM RM RM RM 

Amortisation charge before deduction of 

the grant 

Effect of the grant on the amortisation 

charge (the approved research and 

development project is still on-going) 

Amortisation charge for the financial year 

1,441,086 

- 

1,441,086 

1,032,904 

- 

1,032,904 

The carrying amount of other intangible assets whose title is restricted is RM290,000 (2008: 

RM310,000). 

The carrying amount of other intangible assets pledged as securities for liabilities is RM540,000 

(2008: RM500,000). 

9. SUBSIDIARIES 

- 

- 

- 

THE COMPANY 

2009 2008 

RM RM 

11.32 Investments in subsidiaries 12,320,305 11,336,630 

Less: Impairment loss recognised (656) (656) 

12,319,649 

34 

- 

- 

- 

11,335,974





1.8(e) 

1.46(b),(c) 



11.47(a) Details of the Company’s subsidiaries as at 31 December 2009 are as follows: 

CA174(2) 

(c)(i) 

Name of Subsidiaries 

Country of 

Incorporation 

Principal activities 

Proportion 

of ownership 

interest 

Proportion 

of voting 

power held 

% % 

AXP Holdings Sdn. Bhd. Malaysia Investment holding 100 100 

AE R & D Sdn. Bhd. Malaysia Research & development 100 100 

AE S & I Sdn. Bhd. Malaysia Marketing of software 100 100 

AXP Technical Sdn. Bhd. Malaysia Publisher of newsletters 100 100 

AXP Land Sdn. Bhd. Malaysia Property investment and 

development 

100 100 

AXP Property Sdn. Bhd. Malaysia Property investment and 

development 

100 100 

AXP Building Sdn. Bhd. Malaysia Construction contractor 100 100 

AXP Aquaculture Sdn. 

Bhd. 

Malaysia Aquaculture products 100 100 

AE (BVI) Limited * British Virgin 

Island 

Investment holding 100 100 

AE S & I Pte. Ltd. * Republic of 

Singapore 

Marketing of software 100 100 

AE S & I Limited * 

AE S & I (NZ) Limited * 

AE S & I (PRC) Co., Ltd. * 

Hong Kong SAR 

New Zealand 

People’s Republic 

of China 

Marketing of software 



100 

80 

60 

100 

80 

60 

AE S & I (UK) Limited * United Kingdom Marketing of software 90 90 

AE S & I (America) Inc. * United States Marketing of software 90 90 

AE S & I (Japan) Inc. * Japan Marketing of software 70 45 

* The financial statements of these subsidiaries are audited by the associate firms of Auditors & 

Co. in the respective countries. 

11.47(b)(ii) Although the Group holds not more than half of the voting power in AE S & I (Japan) Inc., the 

Company has the power to cast the majority of votes at meetings of the Board of Directors and the 

control of the entity is by the Board. Thus, AE S & I (Japan) Inc. is controlled by the Company and 

the financial statements of that company are included in the consolidated financial statements. 

11.47(b)(iii) The Group owns 51% of equity interest in SERP (Asia-Pacific) Pte. Ltd., a company incorporated in 

the Republic of Singapore. However, by virtue of an agreement with the other investor, the Group 

does not have control nor significant influence over that company as the other investor has the 

power to govern the financial and operating policies as well as the power to appoint or remove the 

majority of the members of the Board of Directors and the control of the entity is by the Board. 

Consequently, the investment is recognised as other investments of the Group. 

35





1.8(e) 

1.46(b),(c) 



When the Company elects not to prepare consolidated financial statements in accordance with 

MASB 11.8, if the Company is a wholly-owned subsidiary of another company, which is also 

incorporated in Malaysia, the following disclosure is required: 

11.8 The Company does not present consolidated financial statements in accordance with MASB 11.8 as 

the Company is a wholly-owned subsidiary of Be Competent Sdn. Bhd., a company incorporated 

in Malaysia and produces consolidated financial statements. The consolidated financial statements 

of Be Competent Sdn. Bhd., which include the financial statements of the Company, are obtainable 

from 83A, Jalan Emas 1, Taman Sri Skudai, 81300 Johor Bahru, Johor. 

10. INVESTMENT IN ASSOCIATES 


2009 2008 2009 2008 

RM RM RM RM 

Cost of investment in: 

Unquoted associates 350,000 350,000 23,093 23,093 

Quoted associate 

Share of post-acquisition profit, net of 

628,900 628,900 - - 

dividend received 

406,214 180,514 

- 

- 

Loan to associates 99,201 80,705 - - 

Market value of quoted associate 

1,484,315 

693,000 

1,240,119 

642,900 

12.37(a) Details of the Group’s associates as at 31 December 2009 are as follows: 

Country of 

Incorporation 

23,093 

Proportion 

of ownership 

interest 

- 

23,093 

36 

- 

Proportion 

of voting 

power held 

Name of Associates 

Principal activities 

% % 

AXP (S) Limited * Republic of Singapore Investment holding 

and software 

consultancy services 

35 35 

SERP Sdn. Bhd. Malaysia Marketing of SERP 25 18 

AE (HK) Limited Hong Kong SAR Investment holding 

and software 

consultancy services 

40 40 

AE (NZ) Limited New Zealand Dormant 30 30 

AE Co., Ltd. People’s Republic of Manufacturer of 

40 40 

China 

computer hardware 

* The share capital of this associate is quoted on Catalist of Stock Exchange of Singapore.





1.8(e) 

1.46(b),(c) 



Although the Group holds less than 20% of the voting power in SERP Sdn. Bhd., the Group 

exercises significant influence by virtue of the Group’s right in participation in the policy-making 

processes. 

Although the Group holds 25% in SERP Pte. Ltd., a company incorporated in the Republic of 

Singapore, the Group does not have significant influence over SERP Pte. Ltd. as the Group has only 

one representative on the Board of Directors out of six directors. Consequently, the investment is 

recognised as other investments of the Group. 

The financial statements of AE Co., Ltd. are made up to 30 September to coincide with the financial 

year-end of another investor of AE Co., Ltd., which is incorporated in United States, due to the 

statutory requirements in United States. For the purpose of applying the equity method of 

accounting, the financial statements of AE Co., Ltd. for the financial year ended 30 September 2009 

have been used, and appropriate adjustments have been made for significant transactions between 

30 September 2009 and 31 December 2009. 

As a result of the borrowings’ terms and conditions, the loan to SERP Sdn. Bhd. of RM47,809 (2008: 

RM47,201) is subordinate to the borrowings obtained from an offshore bank. 

12.38(a) The following amounts are the Group’s share of the investments in associates: 

THE GROUP 

2009 2008 

RM RM 

Assets and Liabilities 

Total Assets 2,160,986 1,805,703 

Total Liabilities 775,872 646,289 

Group’s share of associates’ net assets 

1,385,114 

1,159,414 

Results 

Revenue 3,104,983 1,309,042 

Profit For The Financial Year 

Group’s share of associates’ profit for the financial year 

536,820 

225,700 

213,850 

69,779 

37





1.8(e) 

1.46(b),(c) 



12.39 The Group has discontinued recognition of its share of losses of AE (HK) Limited as the share of 

accumulated losses of the associate has exceeded the Group’s interest in that associate. The 

unrecognised share of losses of AE (HK) Limited are as follows: 

THE GROUP 

2009 2008 

RM RM 

Group’s unrecognised share of losses: 

At beginning of the financial year 775,000 430,000 

Current year 453,000 345,000 


1,228,000 

11. INVESTMENT IN JOINTLY-CONTROLLED ENTITIES 


2009 2008 2009 2008 

RM RM RM RM 

775,000 

Cost of investment in unquoted shares 

Share of post-acquisition profit, net of 

300,000 300,000 - - 

dividend received 

905,535 350,153 

- 

- 

1,205,535 

650,153 

16.60 Details of significant jointly-controlled entities of the Group are as follows: 

Name of Jointly-Controlled Entities 

Country of Incorporation 

and Residence 

Proportion of ownership 

interest held by the Group 

(%) 

Held though subsidiaries 2009 2008 

AXP-China Co., Ltd. People’s Republic of China 50 50 

AXP-Singapore Pte. Ltd. Republic of Singapore 40 40 

16.60 The following amounts are the Group’s share of the investment in jointly-controlled entities: 

THE GROUP 

2009 2008 

RM RM 

Assets and Liabilities 

Non-current assets 895,795 743,900 

Current assets 615,202 126,906 

Group’s Share of Total Assets 1,510,997 870,806 

- 

38 

-





1.8(e) 

1.46(b),(c) 



THE GROUP 

2009 2008 

RM RM 

Non-current liabilities 98,003 86,048 

Current liabilities 207,459 134,605 

Group’s Share of Total Liabilities 305,462 220,653 

Group’s Share of Net Assets 1,205,535 650,153 

Group’s Share of Results 

Revenue 2,450,785 1,968,054 

Operating Expenses (1,819,669) (1,468,513) 

Profit Before Tax 631,116 499,541 

Income Tax Expense (75,734) (74,931) 

Profit After Tax 

555,382 

424,610 

IAS 25 12. OTHER INVESTMENTS 


2009 2008 2009 2008 

RM RM RM RM 

Non-current: 

Quoted investments at cost: 

Shares outside Malaysia 74,065 69,880 - - 

Shares in Malaysia 

Unquoted investments at cost: 

332,940 454,511 19,370 17,952 

Shares in Malaysia 30,760 85,900 - - 

437,765 

610,291 

19,370 

17,952 

Current 

Quoted investments at cost: 


Shares in Malaysia 79,006 110,682 5,068 52,090 

96,802 

155,781 

5,068 

52,090 

Market value of quoted investments – 

published price 


Shares in Malaysia 466,782 693,301 31,412 83,210 

The market value of quoted investments is based on quoted market prices at the balance sheet date. 

39





1.8(e) 

1.46(b),(c) 



13. DEFERRED TAX ASSETS / LIABILITIES 

25.79(f) The following are the movements of deferred tax assets and liabilities (before offsetting): 

Charge (credit) to Acquisition Disposal 

At 1 Income 

Exchange of 

of At 31 

THE GROUP 

January Statement Equity difference subsidiary subsidiary December 

2009 RM RM RM RM RM RM RM 

Deferred tax assets 

Provisions 58,844 (4,610) - - - - 54,234 

Employees benefits 24,890 3,641 - - 3,268 (512) 31,287 

Unused tax losses 52,035 344 - 10 - - 52,389 

135,769 (625) - 10 3,268 (512) 137,910 

Deferred tax liabilities 

Properties 1,024,538 196,104 22 39,085 71,847 (37,825) 1,293,771 

Trade receivables 9,346 (1,452) - 25 321 (230) 8,010 

1,033,884 194,652 22 39,110 72,168 (38,055) 1,301,781 

2008 

Deferred tax assets 

Provisions 53,273 5,571 - - - - 58,844 

Employees benefits 22,100 2,790 - - - - 24,890 

Unused tax losses 51,769 286 - (20) - - 52,035 

127,142 8,647 - (20) - - 135,769 

Deferred tax liabilities 

Properties 724,746 325,286 175 (25,669) - - 1,024,538 

Trade receivables 9,226 151 - (31) - - 9,346 

733,972 325,437 175 (25,700) - - 1,033,884 

40





1.8(e) 

1.46(b),(c) 



25.72 Deferred tax assets and liabilities are offset when the Group and the Company have a legally 

enforceable right to set off current tax assets against current tax liabilities and deferred tax relate to 

income taxes levied by the same taxation authority on the same taxable entity. The amounts of 

deferred tax assets and liabilities, after appropriate offsetting, are included in the balance sheet, as 

follows: 


2009 2008 2009 2008 

RM RM RM RM 

Deferred tax assets 10,985 31,164 - - 

Deferred tax liabilities 1,174,856 929,279 - - 

25.79(e) The following temporary differences have not been recognised: 


2009 2008 2009 2008 

RM RM RM RM 

Deductible temporary differences 40,300 32,200 - - 

Unused tax losses 23,900 34,900 - - 

64,200 

67,100 

25.26, 37 Deferred tax assets are not recognised for the above temporary differences as it is not probable that 

future taxable profit will be available against which the deductible temporary differences and 

unused tax losses can be utilised by the Group as the future profit streams are unpredictable. 

However, the unused tax losses may be carried forward indefinitely. 

14. PROPERTY DEVELOPMENT COSTS 


2009 2008 2009 2008 

RM RM RM RM 

32.50(c)(i) At beginning of the financial year: 

Land 53,856 23,010 - - 

Development costs 83,974 130,952 - - 

Add: 

137,830 153,962 - - 

32.50(c)(iv) Transfer from land held for 

development 

861,666 58,969 

- 

- 

Acquisition of subsidiary 987,342 - - - 

32.50(c)(ii) Development costs incurred 

Less: 

8,645,329 5,234,942 - - 

32.50(c)(iv) Completed properties transferred to 

inventories 

(456,237) (83,126) 

- 

- 

- 

41 

-





1.8(e) 

1.46(b),(c) 




2009 2008 2009 2008 

RM RM RM RM 

32.50(c)(iii) Costs recognised as expenses in 

income statements: 

32.50(c)(iii) Prior financial years (2,973,797) (80,934) - - 

32.50(c)(iii) Current financial year (6,010,989) (5,145,983) - - 

(8,984,786) (5,226,917) 

32.50(c)(i) 


1,191,144 

32.50(c)(i) Property development costs at end of the financial year represent: 

32.52(b) 

137,830 

Land 440,604 53,856 - - 

Development costs 750,540 83,974 - - 

1,191,144 

137,830 

Property development costs with a net carrying amount of RM786,911 (2008: RM137,830) were 

pledged to licensed banks to secure banking facilities granted to the Group. 

2.37(b) 15. INVENTORIES 


2009 2008 2009 2008 

RM RM RM RM 

At cost: 

Raw materials - 108,682 - - 

Work-in-progress - 36,772 - - 

Finished goods - 457,480 - - 

Aquaculture inventories 33 75 - - 

Building materials 11,420 10,640 - - 

Publications 57 58 - - 

32.48 Unsold completed development units 311,621 33,756 - - 

323,131 647,463 - - 

2.37(c) At net realisable value: 

Finished goods - 87,321 - - 

32.48 Unsold completed development units 70,667 35,352 - - 

70,667 122,673 - - 

393,798 

770,136 

2.37(f) Inventories of the Group with a carrying value of RM82,288 (2008: RM69,108) have been pledged to 

licensed banks for bank facilities granted to certain subsidiaries. 

- 

- 

- 

42 

- 

- 

-





1.8(e) 

1.46(b),(c) 



16. TRADE AND OTHER RECEIVABLES 


2009 2008 2009 2008 

RM RM RM RM 

1.72 Trade receivables 827,105 1,071,588 - - 

Less: Allowance for doubtful debts (69,392) (63,377) - - 

Net trade receivables 757,713 1,008,211 - - 

1.72 Other receivables, deposits and 

prepayments: 

- Other receivables 189,973 158,352 3,534 2,424 

- Deposits 38,637 39,194 189 321 

- Prepayments 50,594 66,227 43 27 

279,204 263,773 3,766 2,772 

1.72 Amounts due from subsidiaries: 

- trade nature - - 765,394 593,201 

- non-trade nature and unsecured - - 2,702,515 4,820,005 

- Less: Allowance for doubtful debts - - - - 

- - 3,467,909 5,413,206 

1,036,917 

1,271,984 

3,471,675 

5,415,978 

Included in trade receivables of the Group is RM143,682 (2008: RM284,791) owing by companies in 

which certain directors of the Company have interests. 

Included in other receivables of the Group is RM12,730 (2008: RM32,905) owing by companies in 

which certain directors of the Company have interests. The outstanding amount is unsecured, 

interest-free and has no fixed terms of repayments. 

7.43 17. GROSS AMOUNT DUE FROM CUSTOMERS 


2009 2008 2009 2008 

RM RM RM RM 

7.41(a) Aggregate contract costs incurred to date 2,393,904 1,650,960 - - 

7.41(a) Add: Attributable profits recognised 703,586 461,986 - - 

7.41(a) Less: Expected losses recognised (10,395) (8,267) - - 

3,087,095 2,104,679 - - 

Less: Progress billings (2,985,697) (1,996,496) - - 

101,398 

108,183 

7.41(c) Retentions included in trade receivables 69,294 80,933 - - 

- 

43 

-





1.8(e) 

1.46(b),(c) 



18. FIXED DEPOSITS WITH LICENSED BANKS 

Fixed deposits amounting to RM3,540 (2008: RM3,540) are pledged to licensed banks for bank 

facilities granted to the Group. 

19. CASH AND BANK BALANCES 


2009 2008 2009 2008 

RM RM RM RM 

Cash on hand and at bank 

Cash at bank held under Housing 

40,340 38,262 128 214 

Development Account 

56,965 176,870 

- 

- 

97,305 

215,132 

32.50(e) Cash at bank held under Housing Development Account are opened and maintained under Section 

7A of the Housing Development (Control and Licensing) Act 1966. 

132.60(a) 20. TRADE AND OTHER PAYABLES 

128 


2009 2008 2009 2008 

RM RM RM RM 

1.72 Trade payables 1,396,016 568,165 - - 

1.72 Other payables and accruals: 

- Other payables 218,900 304,254 179,936 123,902 

- Accruals 262,611 239,430 239 320 

7.41(b) - Advances received from contract 

customers 

3,211 1,453 

- 

- 

484,722 545,137 180,175 124,222 

1.72 Amounts due to subsidiaries: 

- trade nature - - - - 

- non-trade nature and unsecured - - 160,303 204,891 

- - 160,303 204,891 

1,880,738 

1,113,302 

340,478 

214 

329,113 

Included in trade payables of the Group is RM439,792 (RM290,012) owing to companies in which 

certain directors of the Company have interests. 

Included in other payables of the Group is RM43,905 (RM46,711) owing to companies in which 

certain directors of the Company have interests. The outstanding amount is unsecured, interestfree 

and has no fixed terms of repayments. 

44





1.8(e) 

1.46(b),(c) 



7.43 21. GROSS AMOUNT DUE TO CUSTOMERS 


2009 2008 2009 2008 

RM RM RM RM 

7.41(a) Aggregate contract costs incurred to date 76,960 33,911 - - 

7.41(a) Add: Attributable profits recognised 8,056 5,966 - - 

7.41(a) Less: Expected losses recognised (3,095) - - - 

81,921 39,877 - - 

Less: Progress billings (78,710) (38,424) - - 

7.41(c) Retentions included in trade receivables 7,472 6,279 - - 

22. HIRE PURCHASE AND FINANCE LEASE PAYABLES 


2009 2008 2009 2008 

RM RM RM RM 

10.26(b) Minimum lease payments 

- not later than 1 year 

- later than 1 year and not later than 5 

64,326 59,872 - - 

years 

98,467 114,297 

- 

- 

- later than 5 years 364 2,769 - - 

163,157 176,938 - - 

Future finance charges 

Present value of hire purchase and 

(14,569) (17,650) - - 

finance lease payables 

148,588 159,288 

- 

- 

10.26(b) Present value of hire purchase and 

finance lease payables is analysed as 

follows: 

- not later than 1 year 

- later than 1 year and not later than 5 

56,966 53,476 - - 

years 

91,293 103,502 

- 

- 

- later than 5 years 329 2,310 - - 

91,622 105,812 - - 

3,211 

148,588 

1,453 

159,288 

10.26(c) The Group obtains finance lease and hire purchase facilities to finance certain of its plant and 

machinery and motor vehicles. The average remaining lease term is 4 years as at 31 December 

2009. Implicit interest rate of the finance lease and hire purchase are fixed at the date of the 

agreement, and the amount of lease payments are fixed throughout the lease period. The Group 

has the option to purchase the assets at the end of the agreement with minimum purchase 

considerations. There is no significant restriction clauses imposed on the finance lease and hire 

purchase arrangements. 

- 

- 

45 

- 

-





1.8(e) 

1.46(b),(c) 



23. BANK OVERDRAFTS AND OTHER BANK BORROWINGS 


2009 2008 2009 2008 

RM RM RM RM 

BANK OVERDRAFTS 

- Secured 179,756 221,126 36,068 44,396 

- Unsecured 100,560 103,099 - - 

280,316 

324,225 

36,068 

44,396 

OTHER BANK BORROWINGS 

1.73(f) Non-current Liabilities 

Term loans: 

- Secured 247,290 265,977 - 41,534 

- Unsecured - - - - 

247,290 265,977 - 41,534 

Current Liabilities 

Secured: 

- term loans 504,598 662,922 40,751 70,122 

- revolving credits 1,715,425 1,148,796 154,750 82,817 

- other short-term trade facilities 12,744 120,183 - - 

Unsecured: 

- term loans 46,182 22,755 - - 

- other short-term trade facilities 118,064 140,756 - - 

2,397,013 2,095,412 195,501 152,939 

2,644,303 

2,361,389 

195,501 

194,473 

The secured bank overdrafts and other bank borrowings of the Group and the Company are 

secured by a legal charge over the Group’s and the Company’s landed properties, fixed and 

floating charges over assets of certain subsidiaries and guaranteed by the Company. 

The entities are encouraged, but not required, to disclose the following information: 

5.50(a) At the balance sheet date, the Group has undrawn committed credit facilities of RM758,100 (2008: 

RM449,700) where all the precedent conditions had been met. 

24. PROVISIONS 

Warranties Legal Costs Total 

THE GROUP RM RM RM 

20.85(a) At 1 January 2009 210,156 - 210,156 

20.85(b) Additions 113,718 347 114,065 

20.85(c) Utilisations (57,503) - (57,503) 

20.85(d) Reversals (72,911) - (72,911) 

20.85(a) At 31 December 2009 193,460 347 193,807 

20.85 Note: Comparative information is not required to be presented. 

46





1.8(e) 

1.46(b),(c) 

20.86 

20.86 




2009 2008 2009 2008 

RM RM RM RM 

Represent: 

- Current liability 163,358 165,268 - - 

- Non-current liability 30,449 44,888 - - 

193,807 

210,156 

Warranties 

Provision for warranties is made based on the management’s best estimate of the expenditure 

required, based on past experience of similar products and services, to be incurred during the 

warranty periods. 

Legal Costs 

During the financial year, a supplier of a subsidiary took legal action against the said subsidiary 

seeking damages, including interest costs and legal costs incurred and to be incurred, from the said 

subsidiary for the delay in making payments, but the subsidiary disputes liability due to the quality 

of the products supplied by the supplier did not meet its requirement. However, its lawyer advises 

that it is probable that the subsidiary will be found liable. A provision has been set up to recognise 

further costs associate with settling the supplier. 

1.74(a) 25. SHARE CAPITAL 

THE GROUP AND THE COMPANY 

2009 2008 2009 2008 

Number of Shares RM RM 

Authorised: 

At beginning of the financial year 40,000,000 40,000,000 40,000,000 40,000,000 

Created during the financial year 10,000,000 - 10,000,000 - 


50,000,000 

40,000,000 

- 

50,000,000 

47 

- 

40,000,000 

Issued and fully paid: 

At beginning of the financial year 11,050,200 11,045,200 11,050,200 11,045,200 

Issued during the financial year 270,000 5,000 270,000 5,000 


11,320,200 

11,050,200 

11,320,200 

11,050,200 

During the financial year, the authorised share capital of the Company has been increased to 

50,000,000 ordinary shares by the creation of 10,000,000 ordinary shares of RM1 each.





1.8(e) 

1.46(b),(c) 



During the financial year, the Company has issued the following shares: 

Date of Issue No. of Shares Issued Issue Price Purposes 

6 March 2009 20,000 RM2.70 Increase working capital 

1 June 2009 250,000 RM4.00 Part finance the acquisition of a subsidiary 

The new shares issued rank pari passu in respect of the distribution of dividends and repayment of 

capital with the existing shares. 

1.74(b) 26. SHARE PREMIUM 

Share premium arose from issue of ordinary shares in excess of its par value, as follows: 

Date 

THE GROUP 

AND THE 

COMPANY 

RM 

1 January 2005 Issue of 300,000 shares at an issue price of RM2.50 450,000 

1 October 2008 Issue of 5,000 shares at an issue price of RM2.70 8,500 

6 March 2009 Issue of 20,000 shares at an issue price of RM2.70 34,000 

1 June 2009 Issue of 250,000 shares at an issue price of RM4.00 as part of 

the consideration for the acquisition of a subsidiary 

750,000 

1,242,500 

1.74(b) 27. REVALUATION RESERVES 

Revaluation reserves arose from the revaluation of landed property of the Group. Revaluation 

15.82(g) reserves are not available for distribution as dividends to the Company’s shareholders. 

THE THE 

GROUP COMPANY 

RM RM 

At 1 January 2008 553,718 - 


Deferred tax liability on revaluation surplus (175) - 

At 31 December 2008 557,002 - 


Deferred tax liability on revaluation surplus (22) - 

Transfer to retained profits on disposal (6,963) - 


642,254 

48 

-





1.8(e) 

1.46(b),(c) 



1.74(b) 28. TRANSLATION RESERVES 

Translation reserves arose from the exchange differences on translation of foreign operations. 

1.74(b) 29. RETAINED PROFITS 

Effective 1 January 2008, the Company is given the option to make an irrevocable election to move 

to a single tier system or continue to use its tax credit under Section 108 of the Income Tax Act, 

1967 for the purpose of dividend distribution until the tax credit is fully utilised or latest by 31 

December 2013. The Company has elected to continue to use its tax credit under Section 108 of the 

Income Tax Act, 1967. 

29.125 

(b) & (c) 

Accordingly, during the transitional period, the Company may utilise the credit in the Section 108 

balance as at 31 December 2007 to distribute cash dividend payments to ordinary shareholders as 

defined under the Finance Act, 2007. 

At the balance sheet date, subject to the agreement by the Inland Revenue Board: 

1. the Company has sufficient tax credit under Section 108 (6) of the Income Tax Act, 1967 to 

frank the payment of dividends out of all its retained profits. 

2. the Company has a balance of RM2,827,515 (2008: RM5,064,555) in the tax exempt account to 

declare tax exempt dividends. 

If the Company does not have sufficient tax credit to frank the payment of dividends, the disclose the 

following information: 

Subject to the agreement by the Inland Revenue Board, the Company has sufficient tax credit under 

Section 108 (6) of the Income Tax Act, 1967 to frank the payment of dividends up to RM659,887 

(2008: RM422,950) of its retained profits. The Company is required to pay an additional tax of 

RM573,373 (2008: RM1,217,927) to frank the payment of dividends out of all its retained profits. 

30. RETIREMENT BENEFIT OBLIGATION 

The Group operates a funded Retirement Benefit Plan (the Plan) for its eligible employees in 

Malaysia. The amount recognised in the balance sheet of the Plan is as follows: 


2009 2008 2009 2008 

RM RM RM RM 

Present value of funded obligations 238,547 203,796 - - 

Less: Fair value of plan assets (145,158) (106,589) - - 

93,389 97,207 - - 

Unrecognised actuarial losses (22,192) (20,283) - - 

Unrecognised past service cost (4,454) (4,684) - - 

Net liabilities recognised in balance sheet 

66,743 

72,240 

- 

49 

-





1.8(e) 

1.46(b),(c) 



29.125(e) Changes in the fair value of the plan assets are as follows: 


2009 2008 2009 2008 

RM RM RM RM 


Expected return 5,216 4,749 - - 

Actuarial gains 431 212 - - 

Contributions made 43,190 41,540 - - 

Benefits paid (10,268) (9,321) - - 


29.125(d) The plan assets is analysed as follows: 

29.125(g) 

145,158 

106,589 

Equity instruments 76,938 46,493 - - 

Cash and cash equivalents 22,279 13,541 - - 

Landed properties 45,592 46,124 - - 

Other assets 349 431 - - 

145,158 

The actual return on plan assets was RM5,647 (2008: RM4,961). 

106,589 

29.125(d) None of the above plan assets is owned by the Group and the Company. The Group and the 

Company do not occupy any of the above properties or use any of the above assets. 

29.125(e) A reconciliation of the present value of funded obligations in the balance sheet is as follows: 


2009 2008 2009 2008 

RM RM RM RM 


Actuarial losses 2,340 2,112 - - 

Current service cost 24,875 17,883 - - 

Expected interest cost 17,804 14,584 - - 

Benefits paid (10,268) (9,321) - - 


238,547 

203,796 

- 

- 

- 

50 

- 

- 

-





1.8(e) 

1.46(b),(c) 



29.125(f) Total expense recognised in income statements, included in the administrative expenses (expenses 

by function) or employee benefits expenses (expenses by nature) are as follow: 


2009 2008 2009 2008 

RM RM RM RM 

Current service cost 24,875 17,883 - - 

Expected interest cost 17,804 14,584 - - 

Expected return on plan assets 

Expected return on reimbursement right 

(5,216) (4,749) - - 

recognised as an asset 

- 

- 

- 

- 

Actuarial losses - 3,210 - - 

Past service cost 230 342 - - 

Effect on curtailment or settlement - - - - 

37,693 

31,270 

29.125(h) The principal actuarial assumptions used as at the balance sheet date are as follows: 


2009 2008 2009 2008 

% % % % 

Discount rate 4 4 - - 

Expected rate of return on plan assets 5 5 - - 

Expected rate of return on 

reimbursement right recognised as an 

asset 

- 

- 

- 

- 

Expected rate of salary increases 5 5 - - 

Medical cost trend rate 8 8 - - 

- 

51 

-





1.8(e) 

1.46(b),(c) 



31. REVENUE 


2009 2008 2009 2008 

RM RM RM RM 

8.36(b)(i) Sales of goods 202,548 278,170 - - 

8.36(b)(ii) Rendering of services 786,938 734,376 - - 

7.40(a) Contract revenue 1,591,278 1,172,589 - - 

32.50(b) Property development revenue 10,013,736 6,932,479 - - 

8.36(b)(iii) Interest income 2,768 4,159 17 20 

8.36(b)(iv) Royalty income 2,748,944 2,621,434 - - 

8.36(b)(v) Dividend income 78,147 91,445 291,768 236,914 

Licence fee income 8,118,606 7,404,662 - - 

Management fee income - - 89,949 54,609 

IAS25 Rental income from investment property 200,718 86,798 75 179 

23,743,683 

19,326,112 

381,809 

291,722 

32. PROFIT BEFORE TAX 

a) Profit before tax is stated after charging / (crediting): 


2009 2008 2009 2008 

RM RM RM RM 

CA9.1(j) Allowance for doubtful debts: 

- related parties - - - - 

- other than related parties 9,438 13,578 - - 

4.30(b) Amortisation of goodwill included in 

other expenses # 

391,289 471,051 

- 

- 

CA9.1(f) Amortisation of other intangible assets 

included in: # 

- cost of sales 1,241,168 918,276 - - 

- other expenses 199,918 114,628 - - 

CA9.1(q) Auditors’ remunerations 250,900 250,700 25,000 20,000 

CA9.1(j) Bad debts written off 2,512 1,081 - - 

15.78(f) Compensation for impaired property, 

plant and equipment 

(1,203) 

- 

- 

- 

7.40(b) Contract costs recognised # 1,352,588 1,166,701 - - 

2.40(a) Cost of inventories recognised as expense 171,678 380,226 - - 

CA9.1(o) Directors’ remunerations: 

- fees 180,000 120,000 - - 

- salaries, bonuses and allowances 231,450 201,300 - - 

- defined contribution plan 25,500 23,540 - - 

8.36(b)(v) Dividend income (1,718) (2,105) - - 

1.83, 

14.15(c) 

Depreciation of property, plant and 

equipment # 

1,228,514 

876,403 

469 

492 

52





1.8(e) 

1.46(b),(c) 



6.42(a) Exchange loss (gain): 

- realised 

- unrealised 


2009 2008 2009 2008 

RM RM RM RM 

48,903 

90,459 

(50,490) 

79,948 

CA9.1(h) (Gain) / Loss on disposal of: 

- property, plant and equipment (760) (1,088) (152) 28 

- investment property (2,659) (173) - - 

- land held for development (14) - - - 

- other investments (64,242) (15,914) (24,474) 5,011 

- subsidiary (1,459) - 293,051 - 

31.30 Government grant deducted against 

promotional expenses (Note c) 

(100) 

- 

- 

- 

31.30 Government grant recognised as other 

income (Note c) 

(100) 

- 

- 

- 

CA9.1(g) Hire of plant and machinery 2,500 5,890 - - 

8.36(b)(iii) Interest income from bank deposits (657) (718) - - 

2.40(c) Inventories written down to net realisable 

value 

31,250 45,303 

- 

- 

23.115(a) Impairment losses recognised, included in 

other expenses, of: # 

- goodwill 

37,961 

- 

- 

- 

- property, plant and equipment 

2,046 643 

- 

- 

- land held for development 

- 14,558 

- 

- 

- other intangible assets 

- 986 

- 

- 

32.50(b) Property development costs recognised # 8,010,989 5,145,983 - - 

20.85(b) Provision for legal costs 347 - - - 

20.85(b) Provision for warranties 113,718 91,634 - - 

CA9.1(g) Rental of premises 3,769 2,090 - - 

4.30(b) Research and development costs 

expensed off 

39,895 19,998 

- 

- 

CA9.1(j) Reversal of allowance for doubtful debts (348) (732) - - 

23.115(b) Reversal of impairment losses, included 

in other income, of: # 

- property, plant and equipment 

(303) 

- 

- 

- 

- land held for development 

(14,558) 

- 

- 

- 

- other intangible assets 

(895) 

- 

- 

- 

2.40(d) Reversal of inventories written down* (14,694) (21,600) - - 

20.85(d) Reversal of provision for warranties (72,911) (31,695) - - 

1.83 Staff costs (Note d) # 490,010 342,001 58,975 38,305 

2.17(e) * Inventories written down in prior financial year have been reversed during the financial year as 

the management has successfully secured a higher sales amount for those slow-moving 

inventories. 

2.40(b) 

5,605 

- 

# These items are disclosed on the face of the income statements if the entity chooses to present income statements by the 

nature of expenses. 

4,930 

- 

53





1.8(e) 

1.46(b),(c) 



27 b) Finance costs 


2009 2008 2009 2008 

RM RM RM RM 

Interest expense on: 

Term loans 55,439 62,288 10,172 12,716 

Bank overdrafts 28,322 23,411 4,914 5,432 

Hire purchase 6,966 7,226 - - 

Finance lease 7,652 8,026 - - 

Other short-term bank borrowings 137,410 156,608 15,418 6,114 

235,789 257,559 30,504 24,262 

Less interest expenses capitalised under: 

Property, plant and equipment (325) (642) - - 

Property development costs (714) (368) - - 

(1,039) (1,010) - - 

Amount charged to income statements 

234,750 

256,549 

30,504 

24,262 

Finance costs capitalised as part of the cost of the qualifying assets arose from funds that are 

borrowed generally. The finance costs capitalised are determined by applying a capitalisation rate 

of 7% (2008: 7.5%) to the expenditures on that asset. 

c) Government Grants 

31.40(b) *1 If the government grant related to income is presented as a credit in the income statements 

During the financial year, a subsidiary obtained a grant of RM10,000 in respect of approved 

promotional expenditure for promoting Malaysian brands overseas. The grant is presented as a 

component of the other income on the income statements. 

31.40(b) 

31.30 

*2 If the government grant related to income is deducted in reporting the related expense 

During the financial year, a subsidiary obtained a grant of RM10,000 in respect of approved 

promotional expenditure for promoting Malaysian brands overseas. 

The grant is deducted in reporting the related promotional expenditures, included in other 

expenses: 


2009 2008 2009 2008 

RM RM RM RM 

Promotional expenses before deduction of 

grant 

17,456 6,891 

- 

- 

Grant recognised 

Promotional expenses after deduction of 

(10,000) - - - 

grant 

7,456 6,891 

- 

- 

54





1.8(e) 

1.46(b),(c) 



d) Staff costs 


2009 2008 2009 2008 

RM RM RM RM 

Salaries, bonuses and allowances 351,696 226,717 53,742 34,489 

29.47 Contribution to defined contribution plan 37,123 26,378 4,385 3,299 

Expenses on defined benefits plan 37,693 31,270 - - 

29.147 Termination benefits 769 - - - 

Other employees benefits 62,729 57,636 848 517 

490,010 

342,001 

58,975 

38,305 

33. INCOME TAX EXPENSE 


2009 2008 2009 2008 

RM RM RM RM 

25.77 

25.78(a) 

Current tax expense 

Current year 

- Malaysia 655,499 580,664 7,869 10,239 

CA9.1(l) - payable outside Malaysia 

Share of tax expense in 

300,457 256,348 - - 

- associates 49,654 19,681 - - 

- jointly-controlled entities 75,734 74,931 - - 

25.78(b) Under (over) provision in prior years 

1,081,344 

3,076 

931,624 

(4,801) 

7,869 

- 

10,239 

(10,239) 

Deferred tax expense 

1,084,420 926,823 7,869 - 

25.78(c) 

25.78(d) 

Temporary differences 

Changes in tax rates 

193,176 

2,101 

316,790 

- 

- 

- 

- 

- 

195,277 316,790 - - 

Total income tax expense 

1,279,697 

1,243,613 

7,869 

55 

-





1.8(e) 

1.46(b),(c) 



25.79(c)(i) The income tax expense is reconciled to the accounting profit at the applicable tax rate as follows: 


2009 2008 2009 2008 

RM RM RM RM 

Profit before tax 8,278,297 6,043,207 179,723 131,309 

Tax at domestic income tax of 28% (2008: 

28%) # 

Tax effects of: 

2,317,923 1,692,098 50,322 36,767 

25.79(d) Changes in tax rates for certain overseas 

subsidiaries 

2,101 

- 

- 

- 

Non-taxable income (31,114) (36,767) (57,549) (44,301) 

Non-deductible expenses 417,659 420,692 15,096 17,773 

Tax incentives 

Utilisation of previously unrecognised 

(1,057,267) (608,738) 

tax losses 

Differential tax rate for: 

(276) (127) 

- 

- 

- small & medium companies in Malaysia (200) (200) - - 

- subsidiaries in foreign countries (359,806) (218,544) - - 

- property gain tax (12,399) - - - 

Under (over) provision in prior years 3,076 (4,801) - (10,239) 

1.85 

1.74(c) 

19.11 

Total income tax expense 

# Assumption tax rate 

1,279,697 

1,243,613 

7,869 

34. DIVIDENDS 

On 1 April 2009, the Company paid a 10% final tax exempt dividend (total dividend of 

RM1,105,020) in respect of the previous financial year. The net dividend per share was 10 sen. 

On 31 August 2009, the directors declared a 10% interim tax exempt dividend (total dividend of 

RM1,132,020) in respect of the current financial year. The dividend was paid to the shareholders 

registered on 31 October 2009. The net dividend per share was 10 sen. 

The directors have proposed a 10% final tax exempt dividend in respect of the current financial 

year. The dividend is subject to approval by the shareholders at the forthcoming Annual General 

Meeting and has not been included as a liability in the financial statements. Total dividend 

payable is RM1,132,020, and the net dividend per share is 10 sen. 

56 

-





1.8(e) 

1.46(b),(c) 



11.47(b) 35. ACQUISITION OF SUBSIDIARY 

On 1 June 2009, the Company acquired the entire equity interest in AXP Property Sdn. Bhd., a 

company incorporated in Malaysia and principally engaged in property investment and 

development, for a total consideration of RM1,500,000. 

The goodwill arising from the acquisition of AXP Property Sdn. Bhd. is attributable to the 

anticipated profitability of the acquired business and synergy expected to arise from the acquisition 

to the Group’s business in accordance with the Group’s intention to diversify into property 

development and investment segment. 

The net assets acquired in the transaction, goodwill and cash flow arising therefrom, are as follows: 

At date of 

acquisition 

RM 

5.40(d) Property, plant and equipment 500,233 

5.40(d) Investment property 1,217,852 

Land held for development 1,495,060 

Property development costs 987,342 

5.40(d) Trade and other receivables 112,368 

5.40(c) Cash and bank balances 771 

5.40(d) Trade and other payables (227,684) 

Progress billings (300,000) 

5.40(d) Current tax liabilities (23,469) 

5.40(c) Bank overdrafts (800,519) 

Other bank borrowings (2,790,306) 

5.40(d) Deferred tax liabilities (68,900) 

5.40(a) 

102,748 

Goodwill on consolidation 1,397,252 

Purchase consideration 

1,500,000 

Less: Purchase consideration satisfied by issuance of shares (1,000,000) 

Purchase consideration satisfied by cash 

500,000 

5.40(b) Cash and cash equivalents acquired 799,748 

Acquisition of subsidiary, net of cash acquired 

1,299,748 

57





1.8(e) 

1.46(b),(c) 



The effects of the acquisition on the financial position as at the balance sheet date are as follows: 

At 

31.12.2009 

RM 

Property, plant and equipment 543,234 

Land held for property development 455,719 

Property development costs 691,144 

Investment property 543,607 

Trade and other receivables 345,678 

Cash and bank balances 4,324 

Trade and other payables (265,890) 

Progress billings (97,597) 

Current tax liabilities (45,678) 

Bank overdrafts (657,890) 

Other bank borrowings (904,784) 

Deferred tax liabilities (68,901) 

Increase in Group’s net assets 

542,966 

The effects of the acquisition of AXP Property Sdn. Bhd. on the financial results of the Group during 

the financial year are as follows: 

Revenue 1,147,392 

Expenses (860,844) 

Increase in Group’s net profit 

RM 

286,548 

58





1.8(e) 

1.46(b),(c) 



36. DISPOSAL OF SUBSIDIARY 

On 1 December 2009, the Company disposed off its entire interest in a subsidiary, AE Packaging 

Sdn. Bhd. 

The net assets of AE Packaging Sdn. Bhd. at the date of disposal were as follows: 

1.12.2009 

RM 

5.40(d) Property, plant and equipment 839,808 

Inventories 543,788 

5.40(d) Trade and other receivables 212,566 

5.40(c) Cash and bank balances 1,986 

5.40(d) Trade and other payables (880,600) 

5.40(d) Current tax liabilities (17,166) 

5.40(c) Bank overdrafts (201,716) 

Other bank borrowings (416,238) 

5.40(d) Deferred tax liabilities (37,543) 

5.40(d) Attributable goodwill 176,930 

Net assets of AE Packaging Sdn. Bhd. 

221,815 

Gain on disposal 1,459 

5.40(a) Total consideration 

223,274 

5.40(b) Cash and cash equivalents disposed off 199,730 

Proceeds from disposal of subsidiary, net of cash disposed 

37. PURCHASES OF PROPERTY, PLANT AND EQUIPMENT 


2009 2008 2009 2008 

RM RM RM RM 

423,004 

Purchases of property, plant and 

equipment 

4,264,626 748,665 677 1,088 

Less interest expense capitalised (325) (642) - - 

5.43 Less purchases made directly by: 

Long-term borrowings * (142,219) (35,799) - - 

Hire purchases 

Purchases of property, plant and 

(413,758) (117,688) - - 

equipment made by cash payments 

3,708,324 594,536 677 1,088 

5.44(b) 

* Note: If the assets are acquired by directly assuming the related borrowings, the transaction is 

deemed to be a non-cash transaction. 

59





1.8(e) 

1.46(b),(c) 



5.45 38. CASH AND CASH EQUIVALENTS 


2009 2008 2009 2008 

RM RM RM RM 

Fixed deposits with licensed banks 206,625 271,791 - - 

Cash and bank balances 97,305 215,132 128 214 

Bank overdrafts (280,316) (324,225) (36,068) (44,396) 

23,614 162,698 (35,940) (44,182) 

5.48 Less: Fixed deposits pledged (3,540) (3,540) - - 

5.48 Less: Cash at bank held under Housing 

Development Account 

Cash and cash equivalents as previously 

(56,965) (176,870) 

- 

- 

reported 

(36,891) (17,712) (35,940) (44,182) 

5.28 Effect of foreign exchange rate changes 432 389 - - 

15.79(d) 

(36,459) 

(17,323) 

(35,940) 

(44,182) 

39. COMMITMENTS 

As the balance sheet date, the Group and the Company have the following commitments for the 

acquisition of the property, plant and equipment: 


2009 2008 2009 2008 

RM RM RM RM 

Contracted but not provided for 66,504 48,040 8,593 6,594 

Authorised but not contracted for 124,000 324,000 - - 

190,504 

372,040 

16.59 The Group’s share of the capital commitments for the acquisition of the property, plant and 

equipment of the jointly-controlled entities are as follows: 

8,593 

THE GROUP 

2009 2008 

RM RM 

6,594 

Contracted but not provided for 459,000 982,000 

Authorised but not contracted for 212,000 36,000 

671,000 

1,018,000 

60





1.8(e) 

1.46(b),(c) 

5.34 (a) & 

(d) 



The total minimum lease payments under non-cancellable operating leases of the Group for the 

leasing of certain of the office premises, with an average lease term of 8 years, is as follows: 


2009 2008 2009 2008 

RM RM RM RM 

Within one year 

Later than one year and not later than 

5,430 4,390 - - 

five years 

34,500 28,610 

- 

- 

Later than five years 12,390 20,010 - - 

52,320 

53,010 

40. CONTINGENT LIABILITIES 

16.58 Contingent liabilities arising from the interest in jointly-controlled entities 

Unsecured 

- Guarantee given to banks in respect of bank facilities utilised by 

AXP-China Co., Ltd. 

- Guarantee given to suppliers of AXP-Singapore Pte. Ltd. in 

respect of facilities utilised 

12.36 Contingent liabilities arising from the interest in associates 

Unsecured 

- Guarantee given to an offshore bank for bank facilities utilised by 

SERP Sdn. Bhd. 

- Guarantee given to the creditors of AE (HK) Limited jointly with 

other investors 

- 

THE GROUP 

2009 2008 

RM RM 

31,040 

7,620 

38,660 

THE GROUP 

2009 2008 

RM RM 

605,040 

4,360 

609,400 

61 

- 

45,210 

4,320 

49,530 

543,790 

3,520 

547,310 

Contingent liabilities of the Company 

THE COMPANY 

2009 2008 

RM RM 

Unsecured 

- Guarantee given to subsidiaries for bank facilities granted 354,789 458,791





1.8(e) 

1.46(b),(c) 



20.87 During the financial year, a customer of a subsidiary took legal action against the said subsidiary for 

default in payment of the warranty claims to the said customer amounting to RM40,000. However, 

based on legal opinion and the warranty agreement, the said subsidiary has a merit to win the legal 

suit. Thus, no provision has been made in the financial statements of the Group. However, 

associated legal costs have been accrued in the balance sheet. 

19.19 

41. EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE 

Subsequent to the balance sheet date, 

a) the Company has obtained the court approval to appeal against a legal suit won by a creditor at 

the balance sheet date. Total amount claimed by the creditor is RM200,000. No provision has 

been made in the financial statements as the advocator of the Company estimates that the 

Company has a good chance to win the litigation. 

19.21 b) the Company has entered into an agreement with third parties to acquire the entire interest in Be 

Good Limited, a company incorporated in Bermuda, for a total cash consideration of RM5 

million. This company is principally an investment holding company with investment in several 

companies in North America involving in software development and consultancy services. The 

proposed acquisition is expected to strengthen the Group’s present in the software industry in 

this region. The acquisition of the interest will be funded by internally generated fund and issue 

of shares as disclosed in note (c) below and is expected to be completed in the second quarter of 

the financial year ending 31 December 2010 if the proposed acquisition is approved by the 

relevant authorities and the shareholders of the Company. 

19.16 

c) the directors of the Company proposed to issue additional 660,100 new ordinary shares of 

RM1.00 each at RM5.00 per ordinary share via 2-for-1 Right Issue and 200,000 new ordinary 

shares of RM1.00 each at RM5.00 per ordinary shares to selected institutional investors to partly 

finance the acquisition of Be Good Limited. The new shares to be issued rank pari passu in 

respect of the distribution of dividends and repayment of capital with the existing shares. 

d) one of the Group’s debtors has gone into liquidation. The total outstanding amount due from 

this debtor amounts to RM50,000. Of the total outstanding amount, the Group expects to recover 

approximately RM20,000. An allowance for doubtful debt has been made for the estimated 

unrecoverable amount. 

42. AUTHORISATION FOR ISSUE OF THE FINANCIAL STATEMENTS 

The financial statements of the Company were authorised for issue by the Board of Directors on 31 

January 2010. 

62

PERS Model financial statements - AXP Solutions

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