Annual Report 2011 · 2020. 2. 20. · Annual Report 2011 5 Chairman’s Statement On behalf of the Board of Directors, it is my pleasure to present the Annual Report of Widetech

WID

ETECH (M

ALAYSIA

) BERHA

D (113939-UA

nnual Report 2011

Corporate Information 2

Notice of Annual General Meeting 3

Statement Accompanying 4Notice of Annual General Meeting

Chairman’s Statement 5

Profile of Directors 7

Audit Committee Report 11

Corporate Governance Statement 15

Statement on Internal Control 21

Additional Compliance Information 23

Statement of Directors’ Responsibilities 24

Corporate Structure 25

Financial Statements 26

List of Properties 95

Analysis of Shareholdings 96

Proxy Form

Contents

WIDETECH (MALAYSIA) BERHAD (113939-U) 2

Corporate Information

BOARD OF DIRECTORS

Dato’ Lim Kim HuatExecutive Chairman

Kong Sin SengChief Executive Officer

Datuk Chu Sui KiongExecutive Director

Dato’ Cheng Joo TeikExecutive Director

Dato’ Tan Ting WongExecutive Director

Loh Suan PhangExecutive Director

Datuk Ng Bee KenIndependent Non-Executive Director

Dato’ Zakaria Bin Mohammed Independent Non-Executive Director

Dato’ Lim Sin KhongIndependent Non-Executive Director

Lee Yoke ShueNon-Independent Non-Executive Director

AUDIT COMMITTEE Datuk Ng Bee KenChairman of Audit Committee, Independent Non-Executive DirectorDato’ Zakaria Bin MohammedIndependent Non-Executive Director

Dato’ Lim Sin KhongIndependent Non-Executive Director

Lee Yoke ShueNon-Independent Non-Executive Director

SECRETARIES

LimMingToong(MAICSA7000281)LaiCheeWah(MAICSA7031124)

REGISTERED OFFICE

10thFloorMenaraHapSengNo.1&3JalanP.Ramlee50250KualaLumpurTelNo :603.2382.4288FaxNo :603.2382.4170/4171/4172

SHARE REGISTRAR

MegaCorporateServicesSdnBhdLevel15-2SheratonImperialCourtJalanSultanIsmail50250KualaLumpurTelNo :603.2692.4271FaxNo :603.2732.5388/5399

AUDITORS

SJGrantThorntonCharteredAccountantsLevel11,SheratonImperialCourtJalanSultanIsmail50250KualaLumpur

PRINCIPAL BANKERS

CIMBBankBerhadMaybankBerhadPublicBankBerhad

STOCK EXCHANGE LISTING

MainMarketBursaMalaysiaSecuritiesBerhadStockCode:7692

Annual Report 2011 3

Notice of Annual General Meeting

1. TolaytheAuditedFinancialStatementsforthefinancialyearended31March2011togetherwiththeReportsoftheDirectorsandAuditorsthereon.

2. To re-elect the followingDirectorswho are retiring pursuant toArticle 124 of the

ArticlesofAssociationoftheCompany:

(i) LeeYokeShue

(ii) LohSuanPhang

(iii) Dato’ZakariaBinMohammed

3. ToelectDato’LimSinKhong,theDirectorwhoisretiringpursuanttoArticle129oftheArticlesofAssociationoftheCompany.

4. Tore-appointMessrsSJGrantThorntonasAuditorsoftheCompanyandtoauthorisetheDirectorstofixtheirremuneration.

SPECIAL BUSINESS Toconsiderandifthoughtfit,passthefollowingOrdinaryResolution:5. AUTHORITY TO ISSUE SHARES PURSUANT TO SECTION 132D OF THE COMPANIES

ACT, 1965 “THATpursuanttoSection132DoftheCompaniesAct,1965(“theAct”),theDirectors

beandareherebyempoweredtoissuesharesintheCompany,atanytimeuntiltheconclusionofthenextAnnualGeneralMeetinganduponsuchtermsandconditionsand for suchpurposesas theDirectorsmay, in their absolutediscretion,deemfit,providedthattheaggregatenumberofsharesissueddoesnotexceedtenpercentum(10%)oftheissuedsharecapitaloftheCompanyatthetimeofissueandTHATtheDirectorsbeandarealsoempowered toobtain theapproval for the listingofandquotation for the additional shares so issued on BursaMalaysia Securities BerhadandTHATsuchauthorityshallcontinuetobeinforceuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany.”

BYORDEROFTHEBOARD

LIM MING TOONG (MAICSA 7000281)LAI CHEE WAH (MAICSA 7031124)

COMPANYSECRETARIES

2September2011KualaLumpur

NOTICE ISHEREBYGIVENthat theTwenty-SeventhAnnualGeneralMeetingof theCompanywillbeheldatDewanPerdana, Bukit Kiara Equestrian&Country Resort, Jalan Bukit Kiara,Off JalanDamansara, 60000Kuala Lumpur onMonday,26September2011at10.30a.m.forthefollowingpurposes:

A G E N D A

Please refer to Note A

Ordinary Resolution 1







NOTES:

A. ThisAgendaitemismeantfordiscussiononlyastheprovisionofSection169(1)oftheCompaniesAct,1965doesnotrequireaformalapprovaloftheshareholdersandhence,isnotputforwardforvoting.

1. Amemberentitledtoattendandvoteatthemeetingmayappointanotherpersonashisproxytoattendandvoteinhisstead.AproxymaybutneednotbeamemberoftheCompany.Iftheproxyisnotamember,heneednotbeanadvocate,anapprovedcompanyauditororapersonapprovedbytheRegistrarofCompanies.However,hisattendanceatthegeneralmeetingshallautomaticallyrevoketheproxy’sauthority.

2. Amembershallbeentitledtoappointmorethanoneproxy(subjectalwaystoamaximumoftwo(2)proxiesateachmeeting)toattendandvoteatthesamemeeting.Whereamemberappointstwo(2)proxies,theappointmentshallbeinvalidunlessthememberspecifiestheproportionsofhisholdingstoberepresentedbyeachproxy.

3. WhereamemberisanauthorisednomineeasdefinedundertheSecuritiesIndustry(CentralDepositories)Act,1991,itmayappointatleastone(1)proxyinrespectofeachsecuritiesaccountitholdswithordinarysharesoftheCompanystandingtothecreditofthesaidsecuritiesaccount.

4. Ifnonameisinsertedinthespaceprovidedforthenameofyourproxy,theChairmanofthemeetingwillactasyourproxy.

5. The instrumentappointingaproxymustbedepositedat theRegisteredOfficeof theCompanyat10thFloor,MenaraHapSeng,No.1&3JalanP.Ramlee,50250KualaLumpurnotlessthanforty-eight(48)hoursbeforethetimeforholdingthemeetingoranyadjournmentthereof.

6. Iftheappointorisacorporation,theinstrumentappointingaproxymustbeexecutedunderitsCommonSealorunderthehandofitsattorney.

7. ExplanatoryNoteonSpecialBusiness Ordinary Resolution 6 - Authority to Issue Shares pursuant to Section 132D of the Companies Act 1965

TheproposedOrdinaryResolution6,ifpassed,willgiveflexibilitytotheDirectorsoftheCompanytoissuesharesuptoamaximumoftenpercentum(10%)oftheissuedsharecapitaloftheCompanyatthetimeofsuchissuanceofsharesandforsuchpurposesastheyconsiderwouldbeinthebestinterestoftheCompanywithouthavingtoconveneseparategeneralmeetings.

Thisauthority,unlessrevokedorvariedatageneralmeeting,willexpireat theconclusionof thenextAnnualGeneralMeetingoftheCompany.

This is the renewalof themandateobtained fromthe shareholdersat the lastAnnualGeneralMeeting (“thepreviousmandate”).Thepreviousmandatewasnotutilisedandnoproceedswereraised.Thepurposeofthisgeneralmandatesoughtwillprovideflexibility to theCompany foranypossible fund raisingactivitiesbutnotlimitedforfutherplacementofsharesforpurposeoffundingcurrentand/orfutureinvestmentprojects,workingcapital,repaymentofborrowingsand/oracquisitions.

Statement Accompanying Notice of Annual General MeetingPursuanttoParagraph8.27(2)oftheMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad

FurtherdetailsoftheDirectorstandingforelectionatthisTwenty-SeventhAnnualGeneralMeetingaresetoutintheProfileofDirectorsappearingonpages7to10ofthisAnnualReport.

Notice of Annual General Meeting (cont’d)


Chairman’s Statement

OnbehalfoftheBoardofDirectors,itismypleasuretopresenttheAnnualReportofWidetech(Malaysia)Berhadforthefinancialyearended31March2011.

Financial Performance

Forthefinancialyearunderreview,theGrouprecordedalowerrevenueofRM9.522million,adecreaseof7%comparedtoFY2010ofRM10.246million.Despitethedeclineinrevenue,theGroupregisteredalowerpre-taxlossofRM0.151millionascomparedtoapre-taxlossofRM1.147millioninFY2010.

OurgamingoperationscontinuedwithitspositiveperformanceinachievingahigherrevenueofRM1.805millionandapre-taxprofitofRM0.227millionagainstarevenueofRM1.304millionwithapre-taxprofitofRM0.178millioninFY2010.

Despiteaneconomicallychallengingyear,ourmanufacturingdivisioncontinuedtoimproveitspre-taxprofitbyRM0.519milliontoRM0.915millionfromRM0.396millioninFY2010.

OurconsumergoodsfinancingbusinesshasceaseditsmarketingactivitiessinceJune2010duetotheentryoffinancialinstitutions which offered lower interest rates and longer tenure to their customers, thus making this businessunattractivefortheGroup.Weexpecttherevenuetodeclineoverthecomingyearsasourincomewhichisderivedfromtheoutstandingbalanceowingbyourcustomersisonareducingscaleduetorepaymentsandearlysettlementsoftheirloans.TherevenueforthecurrentyearisRM1.692millionwithapre-taxprofitofRM0.768million,whichasexpectedislowercomparedtoarevenueofRM3.790millionandapre-taxprofitofRM1.097millioninFY2010.

AlthoughourhoteloperationinLaosremainedlossmaking,ithasmanagedtopostalowerpre-taxlossofRM1.008millionascomparedtoRM1.525millioninFY2010.Wewillstrivetocontinueourefforttoimprovethisbusiness,andatthesametimeconsideringdisposalofthehotel.

Brief Description of the Industry Trend and Development

Thebusinessenvironmentremainschallengingin2012,withglobaleconomicgrowthlikelytobemoderate.TheBoardremainsvigilantandcommittedonthelookoutforpotentialbusinessinvestmentstofurtherenhancetheearningsoftheGroup.

Prospects and Outlook

Movingforward,theconsumerproductsbusinesswillcontinuetoprovideaprofittothecompanyalbeitonareducingscaleduetoadecliningloanbase.

ThegamingdivisioninIndoChinaisexpectedtocontinuetocontributepositivelytotheearningsoftheGroupforthecomingfinancialyear.Thecompanyinvested,a40%equityinterestinGoldshoreCapitalLimitedon31March2011,topursueoverseasinvestmentprojects.Theboardexpectsthisinvestmenttobeprofitableinthelongrunalthoughlossesareexpectedintheneartermwhiledevelopingthebusiness.Themanufacturingdivisiondidverywellintheyearunderreviewwithhighersalesandprofit,whichweexpectthetrendtocontinueinthecomingyear.Wearecommittedtoacontinuousimprovementinourproductionandoperationalefficiencies,provisionofqualityproductsandmeetingcustomers’deliverydeadlineswithanaimtoincreaseourmarketshareinthisindustry.


Chairman’s Statement (cont’d)

Corporate Social Responsibility

TheGroupfullyacknowledgestheimportanceofitsCorporateSocialResponsibility.

Westrivetomaintainasafeandhealthyenvironmentforouremployeesandcustomersinourbusinesspremises.

Ourmanufacturingdivision remains committed to ISO14001byadoptingand improvingon itsenvironmentalbestpracticestominimizeanyadverseeffectstotheenvironment.

WecontinuetoencourageouremployeestopracticerecyclingandenergyconservationexercisesintheGroup.

TheManagementandstaffhavealsoparticipatedinsomecharitableandsocialprojectsbywayofdonations.

Dividend

TheBoarddoesnotrecommendanydividendforthefinancialyearended31March2011.

Acknowledgements

OnbehalfoftheBoard,Iampleasedtowelcomeonboard,YBhg.Dato’LimSinKhong,asournewIndependentNon-ExecutiveDirector.IwouldalsoliketothankmyfellowBoardMembers,theManagementandstafffortheirinvaluablecontribution,commitmentanddedicationtotheGroup.

Myutmostappreciationtoourvaluedcustomers, suppliers,businessassociates,bankersandmost importantlyouresteemedshareholdersfortheircontinuoussupportandconfidencegiventotheGroup.

Dato’ Lim Kim HuatExecutive Chairman

KualaLumpur


Profile of Directors

YBHGDATO’LIMKIMHUATMalaysian,Aged51ExecutiveChairman

Dato’LimKimHuatwasappointedtotheBoardon26February2004asNon-IndependentNon-ExecutiveDirectorandsubsequently,assumedthepositionofanExecutiveChairmanon25July2006.HeisamemberoftheRemunerationCommittee.

Dato’LimisacertifiedpublicaccountantbyprofessionandisamemberoftheMalaysianInstituteofCertifiedPublicAccountants.HestartedhiscareerwithPricewaterhouseCoopers inKualaLumpur in1980beforemovingontothecommercial sector.Throughhis involvementas seniormanagementpersonnelwithvarious companies inMalaysia,Dato’ Lim has extensive exposures and experience in diverse industries such as manufacturing, trading, propertydevelopment,leisure&entertainmentandfoodservices.

HeiscurrentlytheExecutiveDeputyChairmanofSunriseBerhadandisalsotheManagingDirectorofGefungHoldingsBerhad.

KONGSINSENGMalaysian,Aged55ChiefExecutiveOfficer

KongSinSengwasappointedtotheBoardon27September2004.HeholdsaBachelorofAccounting(Hons)fromtheUniversityofKent,England.HeisamemberoftheInstituteofCharteredAccountantsinEngland&Wales.HeassumedthepositionofChiefExecutiveOfficeroftheCompanyon9February2007.

HestartedhiscareerasanarticledclerkwithReeves&Neylan,CharteredAccountantsintheUnitedKingdomfrom1978to1982andsubsequentlyjoinedPricewaterhouseCoopersin1983.HethenjoinedPrometBerhadasGroupFinancialExecutivein1983andUnitedDetergentIndustriesasFinancialControllerin1986.In1987,hewasattachedtoPrometPetroleumLtdinJakartaandsubsequentlywiththeDharmalaGroup,Indonesiain1989asGroupFinancialController.HesubsequentlybecametheManagingDirectorofHeavyEquipmentDivisionandtheDirectorofFinancialServicesDivision.HejoinedFACBBerhadastheChiefFinancialOfficerin1995andin1997wasthePAtotheChiefExecutiveOfficerofMBFCapitalBerhadandasSeniorVicePresidentinMBFFinanceBerhad.Since2000,hebecametheChiefExecutiveOfficerofGoldwealthCapitalSdnBhd.

HealsositsontheBoardofFittersDiversifiedBerhadsinceDecember2001.


Profile of Directors (cont’d)

YBHGDATUKCHUSUIKIONGMalaysian,Aged52ExecutiveDirector

DatukChuSuiKiongwasappointedtotheBoardon31January2004asNon-IndependentNon-ExecutiveDirector.HesubsequentlyassumedthepositionofanExecutiveDirectoron25July2006.

DatukChu,abusinessentrepreneur,wasinvolvedinPropertyDevelopment.HeiscurrentlytheOwnerandExecutiveChairmanofKudatGolf&MarinaResortHotel.

YBHGDATO’CHENGJOOTEIKMalaysian,Aged65ExecutiveDirector

Dato’ChengJooTeikwasappointedtotheBoardon6December2006.

HewasformerlywithMalaysianAirlineSystemBerhadandhavingaccumulatedextensiveexperienceinthecommercialand service industry,Dato’ Cheng then joined as theGroupExecutiveDirectorof a renownedgroupof companiesspecializinginmanaginghotels,restaurants,recreationalclubs,entertainmentandgamingactivitiesforbothitslocalandinternationaloperations.Hewasinstrumentalinimplementingvariousinternalcontrolsandriskcontrolledproceduresforthegroupofcompaniesinensuringmanagementandoperationalefficiency.

Dato’ Cheng also serves as a committee member in various philanthropic and charitable organizations and hascontributedextensivelytofundraisingandcharitableactivitiesfortheneedyandunderprivileged.

YBHGDATO’TANTINGWONGMalaysian,Aged55ExecutiveDirector

Dato’TanTingWongwasappointedtotheBoardon17January2008.

Dato’Tan,abusinessentrepreneur,accumulatedhismanagementskillsandbusinessacumeninowningandmanagingcompaniesinvolvedintheentertainment,recreationandserviceindustries.HeiscurrentlytheExecutiveChairmanofacompanydistributingmultimediaproductsandalsoholdsthepositionofExecutiveDirectorinvariousprivatelimitedcompaniesdealingincuisines,investments,propertymanagementandtransportation.



LOHSUANPHANGMalaysian,Aged51ExecutiveDirector

MrLohSuanPhangwasappointedtotheBoardon17January2008.

MrLohholdsaBachelorofArts(Hons)fromUniversityofMalaya.

HestartedhisinitialyearswithGentingBerhadandhasmorethan15yearsofexperienceintheseniormanagementoffoodandleisurecorporation.

YBHGDATUKNGBEEKENMalaysian,Aged56IndependentNon-ExecutiveDirector

DatukNgBeeKenwasappointedtotheBoardon22June2009.He is theChairmanoftheAuditCommitteeandamemberoftheNominationCommitteeandRemunerationCommittee.

HeholdsaBachelorofLaw(Honours)fromUniversityofWales,Cardiff,WalesandaMasterofLawsfromKing’sCollege,UniversityofLondon.HeisalsoaBarrister-at-LawofLincoln’sInn,London,anAdvocate&SolicitoroftheHighCourtofMalayaandacertifiedmediator.Heispresentlythemanagingpartnerofalawfirm.

HealsoholdsaMasterofScience(CorporateCommunication)fromUniversitiPutraMalaysiaandisanAssociateoftheAssociationofCostsandExecutiveAccountants,England.

DatukNgiscurrentlytheChairmanandanIndependentNon-ExecutiveDirectorofSinotopHoldingsBhd.HealsositsontheboardofTalamCorporationBerhadandOpensys(M)BerhadasanIndependentNon-ExecutiveDirector.

YBHGDATO’ZAKARIABINMOHAMMEDMalaysian,Aged68IndependentNon-ExecutiveDirector

Dato’ZakariaBinMohammedwasappointedtotheBoardon23May2008.HeisamemberoftheAuditCommitteeandtheChairmanoftheNominationCommitteeandRemunerationCommittee.

Dato’ZakariaisaPolisDiRajaMalaysiapensionerholdingtherankofSeniorAssistantCommissionerbeforeheretiredin1998.HehadheldseveralseniorpostsincludingtheOfficer-in-chargeofCriminalInvestigationandDeputyChiefPoliceOfficerKualaLumpur.HewasalsotheChiefPoliceOfficerofKelantan.

Dato’ZakariawaspreviouslywithTTResourcesBerhadandZaitunBerhad.Heisalsoadirectorofseveralprivatelimitedcompanies.



YBHGDATO’LIMSINKHONGMalaysian,Aged62IndependentNon-ExecutiveDirector

Dato’LimSinKhongwasappointedtotheBoardon3November2010.HeisamemberoftheAuditCommittee.

Dato’LimholdsaDiplomainBusinessStudies,UnitedKingdomandhasmorethan25yearsofexperienceinvariousbusinessesrangingfromtrading,manufacturing,investment,leisuretorecreationindustry.

Dato’Limwasadirectorofapubliclistedcompany.Heisalsoveryactiveincommunityandcharitableactivitiesandcurrentlysitsontheboardandcommitteeofseveralnon-profitmakingorganisations.

LEEYOKESHUEMalaysian,Aged56Non-IndependentNon-ExecutiveDirector

LeeYokeShuewasappointedtotheBoardon14May2002asExecutiveDirectorandwassubsequentlyre-designatedtoNon-IndependentNon-ExecutiveDirectoron1July2010.HeisamemberoftheAuditCommittee.

HeholdsaBachelorofEconomics(Accounting)degreefromtheUniversityofLaTrobe,Australia.He isaCharteredAccountantandisamemberoftheMalaysianInstituteofAccountantsandtheMalaysianInstituteofCertifiedPublicAccountants.

MrLeewaspreviouslyattachedtoPriceWaterhouse(nowknownasPricewaterhouseCoopers)forEighteen(18)years.During his tenure, hewas involved in providing auditing and business advisory services to both private and publicsectors,carriedoutfinancialinvestigationsoncorporationsfacingfinancialdisputesandprovidedlitigationsupporttosubstantiatelegalfindings.Hespecializedincorporaterecoveryandbusinessturnaroundsduringeconomiccrisisandwasalsoappointedtoundertakeprivatizationandcorporatizationexercisesforthegovernment.HewasalsosecondedtoalocalbankunderthedirectiveofBankNegaraMalaysiatosetupandassistthebank’sRecoveryDivision.

NotestotheProfileofDirectors:

1. NoneoftheDirectorsofWidetechhavefamilyrelationshipswithanyotherDirectorsand/ormajorshareholdersoftheCompany;

2. NoneoftheDirectorshaveanyconvictionsforoffences(otherthantrafficoffences)withinthepast10years.3. NoneoftheDirectorshaveconflictofinterestwiththeWidetechGroup.4. ThedetailsofDirectors’attendanceofBoardMeetingsduringthefinancialyearended31March2011aredisclosed

inpage16ofthisAnnualReport.


TheBoardofDirectorsofWidetech(Malaysia)BerhadispleasedtopresenttheAuditCommitteeReportforthefinancialyearended31March2011.

COMPOSITION AND MEETINGS

AsatthedateofthisAnnualReport,theAuditCommitteecomprisesfour(4)Directorsasfollows:

ChairmanDatukNgBeeKen - IndependentNon-ExecutiveDirector

MembersDato’ZakariaBinMohammed - IndependentNon-ExecutiveDirectorDato’LimSinKhong - IndependentNon-ExecutiveDirectorLeeYokeShue - Non-IndependentNon-ExecutiveDirector

Duringthefinancialyearended31March2011,theAuditCommitteemetfour(4)times.ThedetailsofattendanceoftheAuditCommitteeareasfollows:

Name of Director Attendance

Datuk Ng Bee Ken 3/4

Dato’ Zakaria Bin Mohammed 4/4

Dato’ Lim Sin Khong (Appointed on 3 November 2010) 2/2

Lee Yoke Shue (Appointed on 3 November 2010) 1/2

Lee Kar Fook (Resigned on 3 August 2010) 2/2

DetailsofthemembersoftheAuditCommitteearecontainedintheProfileofDirectorssetoutonpages7to10ofthisAnnualReport.

TERMS OF REFERENCE

ThetermsofreferenceoftheAuditCommitteeareasfollows:

Composition

TheBoard shall elect a Committee from amongst themselves (pursuant to a resolution of the Board ofDirectors),comprisingatleast3DirectorswherealltheCommitteemembersmustbeNon-ExecutiveDirectors,withamajorityofwhommustbeIndependentDirectorsandatleast1membershallbeamemberoftheMalaysianInstituteofAccountantsorpossesssuchotherqualificationsand/orexperienceasapprovedbytheBursaMalaysiaSecuritiesBerhad(“BursaSecurities”).

ThemembersoftheCommitteeshallelectaChairmanfromamongstthemselveswhoisanIndependentDirectoroftheCompany.

Audit Committee Report


Audit Committee Report (cont’d)

Allmembers of the Committee, including the Chairman,will hold office only as long as they serve as Directors oftheCompany.ShouldanymemberoftheCommitteeceasetobeaDirectoroftheCompany,hismembershipintheCommitteewouldceaseforthwith.

IfthemembersoftheCommitteeforanyreasonbereducedtobelow3,theBoardofDirectorsshallwithin3monthsfromthatevent,appointsuchnumberofnewmembersasmayberequiredtomakeuptheminimumnumberof3members.

Functions

i) ToreviewwiththeExternalAuditorsthescopeandnatureoftheirauditplan,theresultsoftheirevaluationofthesystemofinternalcontrol,theauditreportsonthefinancialstatementsandtheaccountingpolicieswithintheGroupandassistancegivenbytheemployeesoftheGrouptoExternalAuditors;

ii) To reviewthequarterlyandannualfinancial statementswith theExternalAuditorsandmanagementprior tosubmissiontotheBoardofDirectors,focusingparticularlyon:

a) changesinorimplementationofmajoraccountingpolicychanges;b) compliancewithaccountingstandardsandotherlegalrequirements;c) thegoingconcernassumption;d) significantandunusualevents;ande) majorjudgmentalareas.

iii) Toreviewwithmanagement:

a) audit reports andmanagement letter issued by the External Auditors and the implementation of auditrecommendations;

b) quarterlyfinancialinformation;andc) theassistancegivenbytheofficersoftheCompanytoExternalAuditors.

iv) Toreviewtheeffectivenessandadequacyofthescope,competency,natureandresourcesoftheinternalauditfunctionsandthesystemofinternalcontrolwithintheGroup;

v) Toreviewthe internalauditprogramme,processes, theresultsof the internalauditprogramme,processesorinvestigationundertakenandwhetherornotappropriateactionistakenontherecommendationsoftheinternalauditfunction;

vi) ToreviewanyrelatedpartytransactionandconflictofinterestthatmayarisewithintheCompanyortheGroupincludinganytransaction,procedureorcourseofconductthatraisesquestionsofmanagementintegrity;

vii) Toconsidertheappointmentofinternalandexternalauditors,theauditfeeandanyquestionsofresignationordismissalincludingrecommendingthenominationofpersonorpersonsasauditors;and

viii) TocarryoutotherfunctionsasmaybeagreedbytheCommitteeandBoardofDirectorsfromtimetotime.



Meetings and Activities

TheCommitteeshallmeetatleast4timesineachfinancialyear.Thequorumofameetingshallbe2members,providedthatthemajorityofmemberspresentatthemeetingshallbeindependent.

TheCompanySecretaryshallbetheSecretaryoftheCommittee.

TheInternalAuditorsandExternalAuditorsmayappearatanymeetingattheinvitationoftheCommitteeandshallappearbeforetheCommitteewhenrequiredtodosobytheCommittee.TheInternalAuditorsandExternalAuditorsmayalsorequestameetingiftheyconsideritnecessary.

OtherDirectorswhoarenotmembersoftheCommitteeandemployeesmayattendanyparticularCommitteeMeetingupontheCommittee’sinvitation.

TheCommitteemaycallforameetingasandwhenrequiredwithreasonablenoticeastheCommitteeMembersdeemfit.TheCommitteeMembersmayparticipateinameetingbymeansofconferencetelephone,conferencevideophoneoranysimilarorothercommunicationsequipmentbymeansofwhichallpersonsparticipatinginthemeetingcanheareachother.Suchparticipationinameetingshallconstitutepresenceinpersonatsuchmeeting.

Rights

The Committee is authorized by the Board to investigate any activitywithin its terms of reference and shall haveunrestrictedaccesstoboththeInternalandExternalAuditorsandtoallemployeesoftheGroup.TheCommitteealsoauthorizedbytheBoardtoobtainexternallegalorotherindependentprofessionaladviseasnecessary.

TheCommitteeisalsoauthorisedtoconvenemeetingswiththeInternalAuditorsandExternalAuditors,excludingtheattendanceofotherdirectorsandemployeesoftheGroup,wheneverdeemednecessary.

Access to records

Incarryingouttheirdutiesandresponsibilities,theCommitteewillinprinciplehavefullandunrestrictedaccesstoallCompanyrecords,propertyandpersonnel.

SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE

InaccordancewiththetermsofreferenceoftheAuditCommittee,thefollowingactivitieswereundertakenbytheAuditCommitteeduringthefinancialyearended31March2011,includingthedeliberationonandreviewof:

(a) the unaudited quarterly financial statements of the Group to ensure that they are in compliance with therequirementsofrelevantauthorities,priortothesubmissiontotheBoardfortheirapprovalandreleaseoftheGroup’sresultstoBursaSecurities;

(b) theannualauditedfinancialstatementsoftheGroupandoftheCompanypriortosubmissiontotheBoardofDirectorsforconsiderationandapproval;

(c) theexternal auditors’ report in relation toaudit andaccounting issuesarising from theaudit;mattersarisingfromtheauditoftheGroupinmeetingswiththeexternalauditorswithoutthepresenceoftheexecutiveBoardmembersandmanagement;



(d) the internal audit report and the results and recommendations arising from the reviews conducted by theoutsourcedinternalauditfunction;

(e) therelatedpartytransactionsandpotentialconflictofinterestsituationthatmayhavearisenwithintheCompanyorGroup;and

(f) there-appointmentofexternalauditorsandtheirauditfees,beforetherecommendationtotheBoardofDirectorsforapproval.

INTERNAL AUDIT FUNCTION

TheGroup’sinternalauditfunctionisoutsourcedtoanindependentprofessionalfirmtoreviewandimproveitsexistingprocessesforidentifyingandmanagingtheGroup’srisksandthecontrolprocedurestomanagethoserisks.

FurtherdetailspertainingtotheinternalauditfunctionaresetoutintheStatementonInternalControlsonpages21to22ofthisAnnualReport.


Corporate Governance Statement

TheBoardofDirectorsofWidetech (Malaysia)Berhad (“theBoard”) recognises that its primary responsibility is tosafeguardandpromotethe interestsof theshareholdersandtoenhancethe long-termvalueoftheCompany.TheBoardcontinuouslystrivesandisfullycommittedtomaintaininghighstandardsofcorporategovernancethroughouttheorganisationandtosafeguardtheinterestsoftheshareholders.

TheGroupwillcontinuetoendeavourtocomplywithallthekeyPrinciplesandBestPracticesoftheMalaysianCodeonCorporateGovernance(Revised2007)(“theCode”)initsefforttoobservehighstandardsoftransparency,accountabilityandintegrity.

This statementsetsout themanner inwhich theGroupcomplieswithparagraph15.25of theMainMarketListingRequirements(“MMLR”)ofBursaMalaysiaSecuritiesBerhadandhasappliedthePrinciplesandtheextentofcompliancewith theBestPractices inCorporateGovernanceas setout inPart1andPart2 respectivelyof theCode.Thebestpracticesthatwerenotadoptedduringthefinancialyearareexplainedintherelevantparagraphs.

A. BOARDOFDIRECTORS(i) BoardBalanceandComposition

TheBoardcurrentlycomprises10members,ofwhom,6areExecutiveDirectors(includingtheExecutiveChairman),3areIndependentNon-ExecutiveDirectorsand1isNon-IndependentNon-ExecutiveDirector.TheprofileoftheDirectorsaresetoutonpages7to10ofthisAnnualReport.

The Board comprises highly respectable and professional persons and represents a diverse background ofknowledge,expertiseandexperience.WiththeircombinedexperienceandknowledgetheyprovidesoundadviceandjudgmentforthebenefitoftheCompanyanditsshareholders.ThemixedskillsandexperiencearevitalforthesuccessfulperformanceoftheCompany.

TheExecutiveDirectorsareresponsibleforimplementingthepoliciesanddecisionsoftheBoardandoverseeingthe operations of the Group. The Non-Executive Directors play a pivotal role in ensuring that the strategiesproposedbytheexecutivemanagementareforthefullbenefitsofthestakeholdersandbringforthabalanced,unbiasedandindependentjudgmentonallaspectsoftheGroup’sstrategiesandperformance.

Inaddition,duetotheactiveparticipationofalltheDirectorsincludingthe3IndependentNon-ExecutiveDirectors,noindividualorsmallgroupofindividualsdominatetheBoard’sdecisionmakingprocesses.

TherolesoftheChairmanandChiefExecutiveOfficeraredistinctandseparatewithacleardivisionofresponsibilitiestoensurethebalanceofpowerandauthoritysothatnosingleindividualhasabsolutepowerwithintheGroup.TheChairmanleadstheBoardtoensureitseffectivenesswhereastheChiefExecutiveOfficerisresponsiblefortheefficientandeffectivemanagementofthebusinessandoperationsoftheCompany.

Dato’ Zakaria BinMohammed is the Senior Independent Non-Executive Director to whom concerns may beconveyed.

(ii) BoardMeetings

TheBoardmeetson regularlybasis,at least4timesayear todeliberateandconsidermatters relating to theGroup’s financial performance, significant investments, corporate development, strategic issues and businessplan.AdditionalBoardmeetingsareheldasandwhenurgentissueswarrantmatterstobedeliberated.


Corporate Governance Statement (cont’d)

Duringthefinancialyearended31March2011,theBoardmet4timesanddetailsoftheattendanceoftheBoardmembersduringtheirrespectivetenurearesetoutasfollows:

No. of Meetings Name of Director Designation Attended

Dato’LimKimHuat ExecutiveChairman 4/4 KongSinSeng ChiefExecutiveOfficer 4/4 DatukChuSuiKiong ExecutiveDirector 4/4 Dato’ChengJooTeik ExecutiveDirector 4/4 Dato’TanTingWong ExecutiveDirector 3/4 LohSuanPhang ExecutiveDirector 3/4 LeeYokeShue Non-IndependentNon-ExecutiveDirector 3/4 DatukNgBeeKen IndependentNon-ExecutiveDirector 3/4 Dato’ZakariaBinMohammed IndependentNon-ExecutiveDirector 4/4 Dato’LimSinKhong(appointed on 3 November 2010) IndependentNon-ExecutiveDirector 2/2 LeeKarFook(resigned on 3 August 2010) IndependentNon-ExecutiveDirector 2/2

(iii) SupplyofInformationtoBoardMembers

AllDirectorsareprovidedwiththemeetingagendaandrelevantinformationandreportsonfinancial,operational,corporate, regulatoryandbusinessdevelopmentbywayofBoardpapersoruponspecificrequest to facilitateinformed decision making and effective discharge of their duties. These documents are comprehensive andincludequalitativeandquantitativeinformationtoenabletheBoardmemberstomakesounddecisionsattheBoardmeetings.Seniormanagementstaffareinvitedtoattendthesemeetingstoexplainandclarifythemattersbeingtabledwhereconsiderednecessary.

Inaddition,thereisascheduleofmattersreservedspecificallyfortheBoard’sdecisions,includingtheapprovalofmajoracquisitionsordisposalofbusinessorassets,significantinvestmentsandchangestomanagementandcontrolstructureoftheGroup,namely,keypoliciesandprocedures.

NoticeofBoardmeetingsandBoardpapersareprovidedtotheDirectorsinadvancesothatmeaningfuldeliberationandsounddecisionscanbemadeatBoardmeetings.AllproceedingsoftheBoardmeetingsareminutedbytheCompanySecretary.

TheBoardhasunrestrictedaccess to all informationwithin theCompany,whether as a full Boardor in theirindividualcapacity,whichisnecessaryfordischargeofitsresponsibilitiesandmayobtainindependentprofessionaladviceattheCompany’sexpenseinfurtheranceofitsduties.Wherevernecessary,consultantsandexpertswereinvitedtobrieftheBoardontheirareasofexpertiseortheirreports.

TheBoardhasaccess to theadviceand servicesof theCompanySecretarywho is responsible toensure thatBoardMeetingproceduresarefollowed,andtheapplicablestatutoryandregulatoryrequirementsarecompliedwith.TheCompanySecretaryalsoservesnoticetoDirectorsontheclosedperiodfortradingintheCompany’ssecuritiesinaccordancewithChapter14onDealingsinListedSecuritiesofBursaSecuritiesMainmarketListingRequirements.

TheproceedingsandresolutionsreachedateachBoardmeetingarerecordedintheMinutesBookkeptattheregisteredoffice.BesidesBoardmeetings,theBoardalsoexercisescontrolonmattersthatrequiresitsapprovalthroughthecirculationofDirectors’resolutions.



(iv) Re-election and Re-appointment of Directors

TheappointmentofDirectorsisundertakenbytheBoardasawholeguidedbyformalrecommendationsbytheNominationCommittee.

InaccordancewiththeCompany’sArticlesofAssociation,allBoardmemberswhoareappointedbytheBoardshallbesubjecttoelectionbyshareholdersatthefirstopportunityoftheirappointment.TheCompany’sArticlesofAssociationalsoprovidethatat leastone-third(1/3)oftheDirectorsshallretirebyrotationateachAnnualGeneralMeetingandthatallDirectorsshallretirefromofficeatleastonceeverythree(3)years.AretiringDirectorshallbeeligibleforre-election.

TheDirectorstoretirefromofficeattheforthcomingAnnualGeneralMeetingareLeeYokeShue,LohSuanPhang,Dato’ZakariaBinMohammedandDato’LimSinKhong.

Directors over seventy (70) years of age are required to submit themselves for re-appointment annually inaccordancewithSection129(6)oftheCompaniesAct,1965.Presently,thereisnoDirectoroftheCompanywhoissubjecttosuchre-appointment.

(v) Director’s Training

AllDirectorshaveattendedandsuccessfullycompletedtheMandatoryAccreditationProgrammeasprescribedbyBursaSecurities.

TheBoardofDirectorsareencouragedtoevaluatetheirowntrainingneedsonaregularbasisandtodeterminetherelevantprogrammes,seminarsordialoguesavailablethatwouldbestenablethemtoenhancetheirskillandknowledgesoastoeffectivelydischargetheirduties.

Atthesametime,theBoardofDirectorswasbriefedatquarterlyBoardmeetingsonanysignificantchangesinlawsand regulations thatwere relevantby theCompanySecretarieswith the intention tokeep theDirectorsabreastwiththeregulatoryandlegalrelateddevelopments.

TheDirectorsconcernedhaveundertakenthattheywillattendrelevantseminarsortrainingprogrammesinthenextfinancialyeartocontinuetoenhancetheirskillsandknowledgeforthepurposeofdisposingtheirdutiesandresponsibilities.

(vi) Board Committees

TheBoardofDirectorsdelegatesspecificresponsibilitiestotherespectiveCommitteesoftheBoardnamely,AuditCommittee,NominationCommitteeandRemunerationCommitteeinordertoenhancebusinessandcorporateefficiencyandeffectiveness.TheseCommitteeshavetheauthoritytoexamineparticularissuesandwillreporttotheBoardwiththeirrecommendationsandminutesofthesemeetingsarecirculatedtotheBoard.TheBoard,however,makesthefinaldecisiononallmattersinthebestinterestoftheCompany.

1. Audit Committee

The Board has established the Audit Committee to assist the Board in discharging its duties. The AuditCommitteeworkscloselywiththeexternalandinternalauditorsandmaintainsatransparentprofessionalrelationshipwiththem.

ThereportoftheAuditCommitteeissetoutonpages11to14ofthisAnnualReport.


2. Nomination Committee

ThemembersoftheNominationCommitteeare: - Dato’ZakariaBinMohammed(IndependentNon-ExecutiveChairman) - DatukNgBeeKen(IndependentNon-ExecutiveMember)

The primary objective of the Nomination Committee is to evaluate suitability of candidates and makerecommendationstotheBoardfornewappointments.TheNominationCommitteeisalsoempoweredtoassesstheeffectivenessoftheBoardasawhole.

MembersoftheNominationCommitteemetonceduringtheyearwiththefullattendanceofitsmembers.ThepurposeofthemeetingwastoassesstheeffectivenessoftheBoardasawhole.

3. Remuneration Committee

ThemembersoftheRemunerationCommitteeare:

- Dato’ZakariaBinMohammed(IndependentNon-ExecutiveChairman) - Dato’LimKimHuat(IndependentNon-ExecutiveMember) - DatukNgBeeKen(IndependentNon-ExecutiveMember)

The Remuneration Committee is responsible to recommend to the Board the remuneration frameworkforDirectorsnecessarytoattract,retainandmotivatetheDirectorswhicharereflectiveoftheDirectors’experienceandlevelofresponsibilities.

ItistheultimateresponsibilityoftheentireBoardtoapprovetheremunerationoftheExecutiveDirectorsandnoneof theExecutiveDirectorsparticipate inanyway indeterminingtheir individual remuneration.TheremunerationandentitlementsoftheNon-ExecutiveDirectorsisamatteroftheBoardofDirectorsasawhole,withindividualDirectorsabstainingfromdecisionsinrespectoftheirremuneration.

TheRemunerationCommitteemetonceduringtheyear,whichwasattendedbyallthemembers.

B. DIRECTORS’ REMUNERATION

DetailsofDirectors’remunerationforthefinancialyearended31March2011areasfollows:

(a) Total Remuneration

Categories of Remuneration (RM)

Basic Salary Bonus Fees Allowance Total

Executive 287,269 16,937 - 389,490 693,696

Non-Executive - - - 42,000 42,000

Total 287,269 16,937 - 431,490 735,696




(b) Directors’ remuneration by bands

Executive Non-Executive Total

UptoRM50,000 1 4 5

RM50,001toRM100,000 4 1 5

RM100,001toRM150,000 - - -

RM150,001toRM200,000 - - -

RM200,001toRM250,000 - - -

RM250,001toRM300,000 1 - 1

Forsecurityandconfidentialreasons,thedetailsofindividualDirectors’remunerationarenotshown.ThedetailsofremunerationofeachDirectorarenotdisclosedinthisAnnualReport.TheBoardconsidersthattheDirectors’remunerationdisclosuresbybandandanalysisbetweenExecutiveandNon-ExecutiveDirectorsaresufficienttocatertothetransparencyandaccountabilityaspectsoftheCode.

C. RELATIONSHIP WITH SHAREHOLDERS AND INVESTORS

The Board recognises the importance of effective communication with shareholders and the investmentcommunity, and adheres strictly to the disclosure requirements of BursaMalaysia Securities Berhad (“BursaSecurities”).Effectiveandtransparentcommunicationenablestheshareholders,investorsandthemarketatlargetomakeinformedevaluationoftheCompany.

Information is released on a timely basis to shareholders and investors through various disclosures andannouncementstotheBursaMalaysiaSecuritiesBerhadwhichincludequarterlyresults,annualreportsandanyotherannouncementsviacircularsandpressreleases.AllqueriesfromshareholdersandmembersofthepubliccanbeaddressedtotheCompany’semail,[email protected],theCompanyhadalso announcedmajor corporate developmentwithin theGroup through announcement via Bursa Securities’ListingInformationNetworktoensurethoroughdisseminationofimportantvaluableinformationthroughoutthewholemarket.

At theAnnualGeneralMeeting,questionsarewelcomefromshareholderspertainingtotheperformanceandbusinessactivitiesoftheGroupwhereactivetwo-waycommunicationbetweentheshareholdersandtheCompanyisobserved.Theexternalauditorsarealsoavailabletoprovideprofessionalandindependentperspectivesandclarification.Theshareregistrarisalsopresenttorespondtomattersrelatingtoshareholdersinterests.

D. ACCOUNTABILITY AND AUDIT

Financial Reporting

TheBoardisresponsibleforensuringthatthequarterlyandannualauditedfinancialstatementsoftheCompanypresentafairandbalanceviewandassessmentoftheCompany’sfinancialposition,performanceandprospects.TheAuditCommitteeassiststheBoardinreviewingandscrutinizingtheinformationintermsofaccuracy,adequacyandcompletenessfordisclosure.

TheStatementofDirectors’ResponsibilityinrespectoftheAuditedFinancialStatementspursuanttoparagraph15.26(a)ofMMLRandpursuanttotheStatementofDirectors’responsibilityoftheCompaniesAct,1965issetoutinthesectionofStatementofDirectors’ResponsibilityinrelationtotheFinancialStatementsofthisAnnualReport.



Internal Controls

TheBoardacknowledgesitsresponsibilitiesfortheGroup’ssystemofinternalcontrolscoveringnotonlyfinancialcontrolsbutalsooperational,compliancecontrolsandriskmanagement.

TheinternalauditfunctionoftheGroupisoutsourcedtoanindependentprofessionalfirm,whichreportsdirectlytotheAuditCommitteeandassiststheBoardinmonitoringandmanagingrisksandinternalcontrols.

TheStatementonInternalControlsetoutonpages21to22ofthisAnnualReportprovidesanoverviewofthestateofinternalcontrolswithintheGroup.

Relationship with Auditors

Through the Audit Committee, the Board maintains a formal and transparent relationship with the externalauditorsinseekingprofessionaladviceandensuringcompliancewiththeappropriateaccountingstandards.Fromtimetotime,theexternalauditorshighlighttotheAuditCommitteeandtheBoardonmattersthatrequiretheirattention.

InformationontheroleofAuditCommitteeinrelationtotheexternalauditorsissetoutintheAuditCommitteeReportonpages11to14ofthisAnnualReport.

E. COMPLIANCE STATEMENT

TheBoardissatisfiedthatin2011theCompanyhascompliedwiththebestpracticesoftheCode.


Statement on Internal Control

INTRODUCTION

TheBoardofDirectors(“theBoard”)ofWidetech(Malaysia)Berhad ispleasedtopresent itsStatementon InternalControlforthefinancialyearended31March2011,whichhasbeenpreparedpursuanttoparagraph15.26(b)ofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”)MainMarketListingRequirementsandasguidedbytheStatementonInternalControl:GuidanceforDirectorsofPublicListedCompanies(“theGuidance”).ThisstatementoutlinesthenatureandstateoftheinternalcontrolsoftheGroupduringthefinancialyear.

BOARD’S RESPONSIBILITY

TheBoardacknowledgesthatitisultimatelyresponsiblefortheGroup’ssystemsofinternalcontrolandforreviewingtheadequacyandintegrityoftheinternalcontrolsystemstoensurethatshareholders’interestsandtheGroup’sassetsaresafeguarded.Inthisrespect,theresponsibilityofreviewingtheadequacyandintegrityoftheinternalcontrolsystemshasbeendelegatedtotheAuditCommittee,whichisempoweredbyitstermsofreferencetoseektheassuranceontheadequacyandintegrityoftheinternalcontrolsystemsthroughreportsitreceivesfromindependentreviewsconductedbytheinternalauditfunctionandManagement.

Due to inherent limitations in any system on internal controls, such internal control systems put into effect byManagementcanonlymanageratherthaneliminateall therisks thatmay impedetheachievementof theGroup’sbusinessobjectivesor goals. Therefore, the internal control systems canonlyprovide reasonableandnot absoluteassuranceagainstmaterialmisstatementorloss.

RISK MANAGEMENT FRAMEWORK

KeymanagementstaffandHeadsofDepartmentsaredelegatedwiththeresponsibilitytomanageidentifiedriskswithindefinedparametersandstandards.Periodicmanagementmeetings,attendedbytheHeadsofDepartmentsandkeymanagementstaffsareheld inwhichkeyrisksand theappropriatemitigatingcontrolsarealsodiscussed.KeyrisksrelatingtotheGroup’sstrategicandbusinessplansareescalatedtotheBoardattheirscheduledmeetings.

TheabovementionedriskmanagementpracticesoftheGroupservesastheon-goingprocessusedtoidentify,evaluateandmanagesignificantrisks.

INTERNAL AUDIT FUNCTION

TheGroup’sinternalauditfunctionisoutsourcedtoexternalconsultantstoassisttheBoardandAuditCommitteeinprovidingindependentassessmentontheadequacy,efficiencyandeffectivenessoftheGroup’sinternalcontrolsystem.ThescopeofreviewoftheoutsourcedinternalauditfunctionisdeterminedbytheAuditCommitteewithfeedbackfromtheExecutiveManagement.

During thefinancial year ended31March2011, the internal audit function carriedout an internal audit visit on 2subsidiariesfocusingoncertainkeybusinessprocesses.Inaddition,theinternalauditfunctionalsocarriedoutfollow-upvisitstoensurerecommendationsforimprovementontheinternalcontrolsystemaresatisfactorilyimplemented.TheresultsoftheauditswerepresentedtotheAuditCommitteeatoneofitsscheduledmeetings.

Thecostsincurredinmaintainingtheoutsourcedinternalauditfunctionsforthefinancialyearended31March2011amountedtoRM21,080.


Statement on Internal Control (cont’d)

OTHER KEY ELEMENTS OF INTERNAL CONTROL

TheotherkeyelementsoftheGroup’sinternalcontrolsystemsare:

1. AwelldefinedorganisationalstructurewithclearlinesofaccountabilityandwhichhasadocumenteddelegationofauthoritythatsetsoutthedecisionsthatneedtobetakenandtheappropriateauthoritylevelsofmanagementincludingmattersthatrequiredBoard’sapproval.

2. TheAuditCommitteereviewsthequarterlyfinancialreports,annualfinancialstatementsandtheinternalaudit

reportonaperiodicbasis.DiscussionswithManagementwereheldtodeliberateontheactionsthatarerequiredtobetakentoaddressinternalcontrolmattersidentifiedbytheoutsourcedinternalauditfunction.

3. TheExecutiveDirectorsareclosely involved in the runningofbusinessandoperationsof theGroupand theyreporttotheBoardonsignificantchangesinthebusinessandexternalenvironment,whichaffecttheoperationsoftheGroupatlarge.

4. Experiencedanddedicatedteamofpersonnelacrosskeyfunctionalunits.

5. RegularmanagementmeetingsareheldtodiscusstheGroup’sperformance,businessoperationsandmanagementissuesaswellasformulateappropriatemeasurestoaddressthem.

6. EstablishedinternalpoliciesandproceduresforkeybusinessunitswithintheGroup.

7. OneoftheGroup’soperationsisISO9001:2000andISO14001:2004certified.Withsuchacertification,auditsareconductedbyexternalpartiesperiodicallytoensurecompliancewiththetermsandconditionsofthecertification.

CONCLUSION

TheBoardiscommittedtowardsoperatingasoundsystemofinternalcontrolandeffectiveriskmanagementpracticesthroughout theGroup. TheBoard is also cognizantof the fact that theGroup’s systemof internal control and riskmanagementpracticesmustcontinuouslyevolvetomeetthechangingandchallengingbusinessenvironment.Assuch,theBoardwill,whennecessary,put inplaceappropriateactionplanstorectifyanypotentialweaknessesorfurtherenhancethesystemofinternalcontrolandriskmanagementpractices.

ThisstatementwasapprovedbytheBoardofDirectorson16August2011.


Additional Compliance Information

1. Shares Buy-Backs

Duringthefinancialyearended31March2011,theCompanydidnothaveaschemetobuybackitsownshares.

2. American Depository Receipts (“ADR”) or Global Depository Receipt (“GBR”)

TheCompanydidnotparticipateinanyADRorGDRProgrammeduringthefinancialyear.

3. Imposition of Sanction / Penalties

There were no public sanctions and/or penalties imposed on the Company and its subsidiaries, Directors ormanagementbyanyregulatorybodiesduringthefinancialyear.

4. Non-Audit Fees

Theamountofnon-auditfeesincurredforservicesrenderedbytheexternalauditorstotheGroupforthefinancialyearended31March2011amountedtoRM7,250.

5. Variation in Results for the Financial Year

Therewasnodeviationof10%ormorebetweentheresultsofthefinancialyearended31March2011aspertheauditedfinancialstatementsandtheunauditedresultspreviouslyannounced.

6. Profit Guarantee

TherewerenoprofitguaranteesgivenbytheCompanyduringthefinancialyear.

7. Material Contracts involving Directors’ and Major Shareholders’ Interests

TherewasnomaterialcontractsenteredintobytheCompanyanditssubsidiariesinvolvingDirectors’andmajorshareholders’interests,whichweresubsistingattheendofthefinancialyearended31March2011.

8. Utilisation of Proceeds

TheCompanydidnotimplementanyfundraisingexerciseduringthefinancialyearended31March2011.

9. Revaluation Policy on Landed Properties

TheGroupdoesnotadoptarevaluationpolicyonlandedproperties.


Statement of Directors’ Responsibilities In Relation to the Audited Financial Statements

TheDirectorsarerequiredtopreparethefinancialstatementsthatgiveatrueandfairviewofthestateofaffairsoftheCompanyandoftheGroupattheendofeachfinancialyearandoftheresultsandcashflowforthatyear.ThefinancialstatementsmustbepreparedincompliancewiththeCompaniesAct,1965andwithapplicableapprovedaccountingstandards.

InpreparingthefinancialstatementsoftheCompanyandoftheGroupforthefinancialyearended31March2011,theDirectorshave:

• selectedsuitableaccountingpoliciesandappliedthemconsistently;• madejudgmentsandestimatesthatarereasonableandprudent;• ensuredthatallapplicableaccountingstandardshavebeenfollowed;and• preparedfinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethattheGroupand

theCompanywillcontinueinbusiness.

TheDirectorsareresponsibleforensuringthattheCompanyandGroupmaintainedaccountingrecordswhichdisclosewithreasonableaccuracythefinancialpositionoftheCompanyandoftheGroupandthatthefinancialstatementscomplywiththerequirementsoftheCompaniesAct,1965. TheDirectorshavethegeneralresponsibilityfortakingreasonablemeasures to prevent and detect fraud and other irregularities in order to safeguard the assets of theCompanyandoftheGroup.


Corporate Structure

WIDETECH(MALAYSIA) BERHAD

GW CAPITAL SDN BHD

Dormant

100%

ASIA PACIFICWINNING LIMITED

Investment holding

100%

GOLDWEALTH CAPITAL

SDN BHD

Trading in consumer products

100%

GW PREMIUM CAPITAL

SDN BHD

Trading in consumer products and provide

financing services

100%

Ceased operaon

EPA AUTOMATIONSDN BHD

100%

Manufacturing ofprecision springs

WIRE MASTERSPRING

SDN BHD

96%

Ceased operaon

EPA AUTOMATIONPTE LTD

100%

REMARKABLE GROUP LIMITED

Provision of equipment andmanagement

service forgaming

operaons

50%

RICH LEE HOLDINGS SDN BHD

Dormant

100%

LAO-MALAYSIA INVESTMENTS

GROUP

Hotel and gaming operaons

75%

ACE UNICORN LIMITED

Provision of equipment andmanagement

service forgaming

operaons

60%

ENSELINIINTERNATIONAL

LIMITED

Gaming operaons

65%

PROBUSINESS INVESTMENTS

LIMITED

Investment holdingand gaming operaons

100%


GOLDWEALTH CAPITALSDN BHD

GW PREMIUM CAPITALSDN BHD

WIRE MASTERSPRING SDN BHD



PROBUSINESS INVESTMENTS LIMITED

Trading inconsumer products

Trading in consumer productsand provide financing services


Trading in industrial and high-tech products

Trading in industrial and high-tech products

Investment holding


Dormant

100%

100%

100%

96%

100%

100%

100%

GW CAPITAL SDN BHD


ENSELINI INTERNATIONAL LIMITED

ASIA PACIFIC WINNING LIMITED

ACE UNICORN LIMITED

Acquiring trade receivables from holding company and issuing private debt securities to fund the purchase

Provision of equipment and management service for gaming operations

Gaming operations

Investment holding


100%

50%

65%

100%

60%

LAO-MALAYSIA INVESTMENTS GROUP

Hotel and gaming operations

75%



Ceased operation

PROBUSINESS INVESTMENTS LIMITED

Investment holdingand gaming operations

GOLDWEALTH CAPITALSDN BHD

Trading inconsumer products

100%

GW PREMIUM CAPITALSDN BHD

Trading in consumer productsand provide financing services

100%

WIRE MASTERSPRING SDN BHD


96%

100%


Ceased operation

100%

100%

ASIA PACIFIC WINNING LIMITED

Investment holding

100%

GOLDSHORECAPITAL LIMITED

Gaming operations

40%

GW CAPITAL SDN BHD

100%

Dormant


Dormant

100%

ACE UNICORN LIMITED

Gaming operations

60%

ENSELINI INTERNATIONAL LIMITED

Ceased operaon

65%

LAO-MALAYSIA INVESTMENTS GROUP

Hotel operations

75%



50%

Directors’ Report 27

Consolidated Statement of Financial Position 32

Consolidated Statement of Comprehensive Income 33

Consolidated Statement of Changes in Equity 34

Consolidated Statement of Cash Flows 35

Statement of Financial Position 37

Statement of Comprehensive Income 38

Statement of Changes in Equity 39

Statement of Cash Flows 40

Notes to the Financial Statements 41

Statement by Directors 91

Statutory Declaration 92

Independent Auditors’ Report 93

Financial Statement

26Annual Report 2011


Directors’ Report for the year ended 31 March 2011

TheDirectorsherebysubmittheirreportandtheauditedfinancialstatementsoftheGroupandoftheCompanyfortheyearended31March2011.

Principal activities

TheprincipalactivitiesoftheGroupareasfollows:

Company - Investmentholding - Provisionofmanagementservices - Rentalofproperties

Subsidiaries - TheprincipalactivitiesofthesubsidiariesaresetoutinNote5tothefinancialstatements.

Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringthefinancialyear.

Results Group Company RM RM(Loss)/Profitforthefinancialyearattributableto:Ownersoftheparent (997,776) 121,573Minorityinterest 562,088 - (435,688) 121,573

Reserves and provisions

Therewerenomaterialtransferstoorfromreservesandprovisionsduringtheyearunderreviewexceptasdisclosedinthefinancialstatements.

Dividend

NodividendwaspaidduringtheyearandtheDirectorsdonotrecommendanydividendtobepaidfortheyearunderreview.

Directors of the Company

Directorswhoservedsincethedateofthelastreportare:

Dato’LimKimHuat DatukChuSuiKiong Dato’ChengJooTeik Dato’TanTingWong LohSuanPhang KongSinSeng DatukNgBeeKen LeeYokeShue Dato’ZakariabinMohammed Dato’LimSinKhong (appointedon3.11.2010) LeeKarFook (resignedon3.8.2010)


Directors’ Report for the year ended 31 March 2011 (cont’d)

Directors’ interest in shares

TheinterestsanddeemedinterestsinthesharesoftheCompanyandofitsrelatedcorporations(otherthanwholly-ownedsubsidiaries)ofthosewhowereDirectorsatyearend(includingtheinterestsofthespousesorchildrenoftheDirectorswhothemselvesarenotDirectorsoftheCompany)asrecordedintheRegisterofDirectors’Shareholdingsareasfollows:

Ordinary shares of RM1 each Balance at Balance at 1.4.2010 Bought (Sold) 31.3.2011 The Company Direct interestDato’ChengJooTeik- own 200,000 - - 200,000- others@ 1,478,200 81,700 - 1,559,900DatukChuSuiKiong 220,500 - - 220,500LohSuanPhang 2,011,300 - - 2,011,300Indirect interest Dato’ChengJooTeik 4,198,952 - - 4,198,952DatukChuSuiKiong 8,030,652 - - 8,030,652Dato’TanTingWong 8,030,652 - - 8,030,652Dato’LimSinKhong 2,007,664Ω - - 2,007,664SubsidiariesDirect interestDato’ChengJooTeik - WireMasterSpringSdn.Bhd.- own 1 - - 1Indirect interestDatukChuSuiKiong- WireMasterSpringSdn.Bhd. 1,439,998 - - 1,439,998Dato’TanTingWong- WireMasterSpringSdn.Bhd. 1,439,998 - - 1,439,998Directors’ interest in shares (cont’d)


Ordinary shares of USD1 each Balance at Balance at 1.4.2010 Bought (Sold) 31.3.2011DatukChuSuiKiong- AceUnicornLimited 3 - - 3- RemarkableGroupLimited 1 - - 1- EnseliniInternationalLimited 65 - - 65- Lao-MalaysiaInvestmentsGroup 750,000 - - 750,000Dato’TanTingWong- AceUnicornLimited 3 - - 3- RemarkableGroupLimited 1 - - 1- EnseliniInternationalLimited 65 - - 65- Lao-MalaysiaInvestmentsGroup 750,000 - - 750,000

@ ThesearesharesheldinthenameofthesonandaretreatedasinterestoftheDirectorinaccordancewithSection134(12)(c)oftheCompaniesAct,1965.

Ω ThesearesharesheldinthenameoftheDirectorasattheappointmentdate.

ByvirtueoftheirinterestinthesharesoftheCompany,DatukChuSuiKiongandDato’TanTinWongarealsodeemedtobeinterestedinthesharesofthesubsidiariesduringthefinancialyeartotheextentthattheCompanyhasaninterest.

NoneoftheotherDirectorsholdingofficeat31March2011hadanyinterestintheordinarysharesoftheCompanyanditsrelatedcorporationsduringthefinancialyear.

Directors’ benefits

Sincetheendofthepreviousfinancialyear,noDirectoroftheCompanyhasreceivednorbecomeentitledtoreceiveanybenefit(otherthanthebenefitincludedintheaggregateamountofemolumentsreceivedordueandreceivablebyDirectorsasshowninthefinancialstatementsbyreasonofacontractmadebytheCompanyorarelatedcompanywiththeDirectororwithafirmofwhichtheDirectorisamember,orwithacompanyinwhichtheDirectorhasasubstantialfinancialinterest,otherthancertainDirectorswhomaybedeemedtoderiveabenefitbyvirtueoftransactionsenteredintointheordinarycourseofbusinessbetweentheCompanyandcompaniesinwhichtheDirectorshavesubstantialfinancialinterest,asdisclosedinNote24tothefinancialstatements.

TherewerenoarrangementduringandattheendofthefinancialyearwhichhadtheobjectofenablingDirectorsoftheCompanytoacquirebenefitsbymeansoftheacquisitionofsharesinordebenturesoftheCompanyoranyotherbodycorporate.

Issue of shares and debentures

Therewerenochangesintheissuedandpaid-upcapitaloftheCompanyduringthefinancialyear.

Therewerenodebenturesissuedduringthefinancialyear.

Options granted over unissued shares



Directors’ Report for the year ended 31 March 2011 (cont’d)

NooptionsweregrantedtoanypersontotakeupunissuedsharesoftheCompanyduringthefinancialyear.

Other statutory information

BeforethestatementsoffinancialpositionandstatementsofcomprehensiveincomeoftheGroupandoftheCompanyweremadeout,theDirectorstookreasonablestepstoascertainthat:

i) allknownbaddebtshavebeenwrittenoffandadequateprovisionmadefordoubtfuldebts,and

ii) allcurrentassetshavebeenstatedatthelowerofcostandnetrealisablevalue.Atthedateofthisreport,theDirectorsarenotawareofanycircumstances:

i) thatwouldrendertheamountwrittenoffforbaddebts,ortheamountoftheprovisionfordoubtfuldebts,intheGroupandintheCompanyinadequatetoanysubstantialextent,or

ii) thatwouldrenderthevalueattributedtothecurrentassetsinthefinancialstatementsoftheGroupandoftheCompanymisleading,or

iii) whichhavearisenwhichrenderadherencetotheexistingmethodofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate,or

iv) nototherwisedealtwithinthisreportorthefinancialstatements,thatwouldrenderanyamountstatedinthefinancialstatementsoftheGroupandoftheCompanymisleading.

Atthedateofthisreport,theredoesnotexist:

i) anychargeontheassetsoftheGrouporoftheCompanythathasarisensincetheendofthefinancialyearandwhichsecurestheliabilitiesofanyotherperson,or

ii) anycontingentliabilityinrespectoftheGrouporoftheCompanythathasarisensincetheendofthefinancialyear.

NocontingentliabilityorotherliabilityofanycompanyintheGrouphasbecomeenforceable,orislikelytobecomeenforceablewithintheperiodoftwelvemonthsaftertheendofthefinancialyearwhich,intheopinionoftheDirectors,willormaysubstantiallyaffecttheabilityoftheGroupandoftheCompanytomeettheirobligationsasandwhentheyfalldue.

IntheopinionoftheDirectors,theresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearended31March2011havenotbeensubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnaturenorhasanysuchitem,transactionoreventoccurredintheintervalbetweentheendofthatfinancialyearandthedateofthisreport.

Auditors


TheAuditors,MessrsSJGrantThorntonhaveindicatedtheirwillingnesstocontinueinoffice.

SignedonbehalfoftheBoardofDirectorsinaccordancewitharesolutionoftheBoardofDirectors,

……………………………………….. )DATO’CHENGJOOTEIK ) ) ) ) ) DIRECTORS ) ) ) )……………………………………….. )KONGSINSENG )

KualaLumpur26July2011



Consolidated Statement of Financial Position as at 31 March 2011

Note 2011 2010 2009 RM RM RM (Restated) (Restated)ASSETSNon-current assets Property,plantandequipment 4 17,255,619 19,318,808 21,541,183 Investmentinassociate 6 60,520 - - Goodwillonconsolidation 7 - - - Receivables,depositsandprepayments 8 5,182,695 7,892,531 10,273,140Totalnon-currentassets 22,498,834 27,211,339 31,814,323Current assets Receivables,depositsandprepayments 8 5,274,512 6,578,485 9,011,002 Inventories 9 794,532 682,409 917,190 Amountduefromassociate 10 1,439,014 - - Taxrecoverable 37,910 114,748 136,906 Cashandcashequivalents 11 9,755,156 5,300,324 2,401,771Totalcurrentassets 17,301,124 12,675,966 12,466,869Total assets 39,799,958 39,887,305 44,281,192

EQUITY AND LIABILITIES EQUITYSharecapital 12 44,753,400 44,753,400 44,753,400Reserves 13 (14,345,682) (13,893,034) (11,613,947)Totalequityattributabletoownersoftheparent 30,407,718 30,860,366 33,139,453Minorityinterest 14 777,827 253,452 622,301Total equity 31,185,545 31,113,818 33,761,754LIABILITIESNon-current liabilities Borrowings 15 4,366,986 4,741,383 4,886,633 Deferredtaxliabilities 16 95,000 95,000 93,000Totalnon-currentliabilities 4,461,986 4,836,383 4,979,633Current liabilities Payablesandaccruals 17 3,614,723 3,580,582 4,332,634 Borrowings 15 512,614 332,522 1,202,746 Taxpayable 25,090 24,000 4,425Totalcurrentliabilities 4,152,427 3,937,104 5,539,805Total liabilities 8,614,413 8,773,487 10,519,438Total equity and liabilities 39,799,958 39,887,305 44,281,192

Theaccompanyingnotesformanintegralpartofthefinancialstatements.


Consolidated Statement of Comprehensive Incomefor the year ended 31 March 2011

Note 2011 2010 RM RM

Revenue 18 9,521,931 10,246,389Changesinmanufacturedinventories 32,472 (42,436)Rawmaterialsandconsumablesused (1,643,852) (1,509,829)Staffcosts 20 (3,056,225) (3,497,919)Depreciation 4 (2,359,671) (2,734,577)Operatingexpenses (2,622,380) (3,539,350)Otheroperatingincome 233,168 159,032Operating profit/(loss) 105,443 (918,690)Financecosts (256,333) (228,058)Loss before tax 19 (150,890) (1,146,748)Taxexpense 22 (284,798) (258,492)Loss for the year (435,688) (1,405,240)Othercomprehensiveincome/(loss) 507,415 (752,946)Total comprehensive income/(loss) for the financial year 71,727 (2,158,186)Loss for the financial year attributable to:-Ownersoftheparent (997,776) (1,526,141)Minorityinterest 562,088 120,901Loss for the year (435,688) (1,405,240)Total comprehensive income/(loss) attributable to:-Ownersoftheparent (452,648) (2,279,087)Minorityinterest 524,375 120,901Lossfortheyear 71,727 (2,158,186)Basiclossperordinaryshare(sen) 23 (2.23) (3.41)



Consolidated Statement of Changes in Equity for the year ended 31 March 2011

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2011 2010 RM RM

Cash flows from operating activities Lossbeforetax (150,890) (1,146,748) Adjustmentsfor: Allowanceforimpairmentloss 19,016 126,584 Allowanceforslowmovinginventories 18,885 29,935 Baddebtswrittenoff 11,511 - Depreciationofproperty,plantandequipment 2,359,671 2,734,577 Impairmentlossongoodwill - 28,220 Interestexpense 256,333 228,058 Property,plantandequipmentwrittenoff 18,394 586 Gainondisposalofproperty,plantandequipment (34,548) (598) Interestincome (190,961) (52,347) Reversalofimpairmentloss (11,511) - Unrealisedgainonforeignexchange (12,475) (58,612) Operatingprofitbeforechangesinworkingcapital 2,283,425 1,889,655 Changesinworkingcapital: Associate (1,439,014) - Inventories (131,008) 200,275 Payablesandaccruals 28,189 (702,720) Receivables,depositsandprepayments 5,006,377 4,383,248 Cashgeneratedfromoperations 5,747,969 5,770,458 Taxpaid (193,616) (207,783) Net cash from operating activities 5,554,353 5,562,675Cash flows from investing activities Acquisitionofanassociate (60,520) (4) Interestreceived 190,961 52,347 Proceedsfromdisposalofproperty,plantandequipment 34,550 2,560 Purchaseofproperty,plantandequipment(NoteA) (702,174) (982,491)Net cash used in investing activities (537,183) (927,588)

Consolidated Statement of Cash Flowsfor the year ended 31 March 2011



Consolidated Statement of Cash Flowsfor the year ended 31 March 2011 (cont’d)

2011 2010 RM RM

Cash flows from financing activities Dividendpaidtominorityinterest - (489,750) Drawdownoftermloan - 258,000 Repaymentoffinanceleaseliabilities (73,916) (70,077) Repaymentoftermloan (230,389) (241,972) Interestpaid (256,333) (228,058) Net cash used in financing activities (560,638) (771,857)Netincreaseincashandcashequivalents 4,456,532 3,863,230Cashandcashequivalentsat1April 5,300,324 1,440,346Effectsofexchangedifferencesoncashandcashequivalents (1,700) (3,252)Cash and cash equivalents at 31 March (Note B) 9,755,156 5,300,324

NOTES

A. Purchase of property, plant and equipment

TheGroupacquiredproperty,plantandequipmentwithaggregatecostsofRM812,174(2010:RM982,491)ofwhich RM110,000 (2010: Nil) was acquired bymeans of finance lease. Cash payments of RM702,174 (2010:RM982,491)weremadetopurchasetheproperty,plantandequipment.

B. Cash and cash equivalents

Cashandcashequivalentsincludedinthestatementofcashflowscomprisethefollowingamounts:

Note 2011 2010 RM RMDepositswithlicensedbanksandfinancialinstitutions 11 8,808,708 4,255,616Cashandbankbalances 11 946,448 1,044,708 9,755,156 5,300,324


Statement of Financial Positionat 31 March 2011


Note 2011 2010 RM RM

Assets Property,plantandequipment 4 6,865,274 7,106,423 Investmentsinsubsidiaries 5 3,975,004 3,975,004Total non-current assets 10,840,278 11,081,427 Receivables,depositsandprepayments 8 15,590,675 20,985,798 Cashandcashequivalents 11 141,388 857Total current assets 15,732,063 20,986,655Total assets 26,572,341 32,068,082Equity Sharecapital 12 44,753,400 44,753,400 Reserves 13 (23,062,269) (23,183,842)Total equity 21,691,131 21,569,558Liabilities Borrowings 15 4,273,227 4,692,590Total non-current liability 4,273,227 4,692,590 Payablesandaccruals 17 158,823 5,545,748 Borrowings 15 449,160 260,186Total current liabilities 607,983 5,805,934Total liabilities 4,881,210 10,498,524Total equity and liabilities 26,572,341 32,068,082


Statement of Comprehensive Incomefor the year ended 31 March 2011


Note 2011 2010 RM RMRevenue 18 3,770,186 3,650,172Staffcosts 20 (251,042) (363,534)Depreciation 4 (410,059) (407,941)Operatingexpenses (310,015) (239,483)Otheroperatingexpenses (2,439,794) (2,723,143)Otheroperatingincome 1,896 -Operating profit/(loss) 361,172 (83,929)Financecosts (238,771) (216,641)Profit/(Loss) before tax 19 122,401 (300,570)Taxexpense 22 (828) (810)Profit/(Loss)forthefinancialyear 121,573 (301,380)Othercomprehensiveincome - -Totalcomprehensiveincome/(loss)forthefinancialyear 121,573 (301,380)


Non-distributable Share Share premium Accumulated losses capital reserve Total RM RM RM RMAt1April2009 44,753,400 132,167 (23,014,629) 21,870,938Totalcomprehensivelossforthe financialyear - - (301,380) (301,380)At 31 March 2010 44,753,400 132,167 (23,316,009) 21,569,558Totalcomprehensiveincomeforthe financialyear - - 121,573 121,573At 31 March 2011 44,753,400 132,167 (23,194,436) 21,691,131

Statement of Changes in Equityfor the year ended 31 March 2011



Statement of Cash Flowsfor the year ended 31 March 2011

2011 2010 RM RMCash flows from operating activities Profit/(Loss)beforetax 122,401 (300,570) Adjustmentsfor: Allowanceforimpairmentloss 1,089,859 513,969 Depreciationofproperty,plantandequipment 410,059 407,941 Interestexpense 238,771 216,641 Lossonunrealisedforeignexchange 1,349,935 2,209,174 Property,plantandequipmentwrittenoff 510 - Dividendincome (3,000,000) (3,000,000) Interestincome (1,896) - Operatingprofitbeforechangesinworkingcapital 209,639 47,155 Changesinworkingcapital: Receivables,depositsandprepayments 577,319 2,374,488 Payablesandaccruals (8,915) (865,507) Cashgeneratedfromoperations 778,043 1,556,136 Taxpaid (828) (810) Net cash from operating activities 777,215 1,555,326 Cash flows from investing activities Interestreceived 1,896 - Purchaseofproperty,plantandequipment (169,420) (396,151) Net cash used in investing activities (167,524) (396,151)Cash flows from financing activities Interestpaid (238,771) (216,641) Drawdownoftermloan - 258,000 Repaymentoftermloan (230,389) (241,972) Net cash used in financing activities (469,160) (200,613) Netincreaseincashandcashequivalents 140,531 958,562Cashandcashequivalentsat1April 857 (957,705) Cash and cash equivalents at 31 March 141,388 857

NOTE

Cashandcashequivalentsincludedinthestatementofcashflowcomprisethefollowingamounts:

Note 2011 2010 RM RMCashandbankbalances 11 141,388 857



1. GENERAL INFORMATION

TheCompanyisapubliclimitedliabilitycompany,incorporatedanddomiciledinMalaysia.TheregisteredofficeoftheCompanyislocatedat10thFloorMenaraHapSeng,No.1&3JalanP.Ramlee,50250KualaLumpurandtheprincipalplaceofbusinessoftheCompanyislocatedatK-09-01,No.2,JalanSolaris,SolarisMont’Kiara,50480KualaLumpur.

TheCompanyisprincipallyengagedasaninvestmentholdingcompany,provisionofmanagementservicesandrentalofproperties.TheprincipalactivitiesofthesubsidiariesaresetoutinNote5tothefinancialstatements.

Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringthefinancialyear.

ThefinancialstatementswereauthorisedforissuebytheBoardofDirectorsinaccordancewitharesolutionoftheDirectorson26July2011.

2. BASIS OF PREPARATION

2.1 Statement of Compliance

The financial statements of the Company have been prepared in accordance with Financial ReportingStandardsissuedbytheMalaysianAccountingStandardsBoard(“MASB”)andtheCompaniesAct,1965inMalaysia.

2.2 Basis of Measurement

ThefinancialstatementsoftheCompanyarepreparedunderthehistoricalcostconvention,unlessotherwiseindicatedinthesummaryofsignificantaccountingpolicies.

2.3 Functional and Presentation Currency

The financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s functionalcurrency.

2.4 Adoption of Financial Reporting Standards (“FRSs”)

From1April2010onwards,theCompanyadoptedthefollowingFRSsandICInterpretationsthathavebeeneffectiveonorbefore1April2010:-

FRS3 - BusinessCombinations FRS5 - Non-CurrentAssetsHeldforSaleandDiscontinuedOperations FRS7 - FinancialInstruments:Disclosures FRS8 - OperatingSegments FRS101 - PresentationofFinancialStatements FRS102 - Inventories FRS107 - StatementofCashFlows FRS108 - AccountingPolicies,ChangesinAccountingEstimatesandErrors FRS110 - EventsAftertheReportingPeriod FRS112 - IncomeTaxes FRS116 - Property,PlantandEquipment FRS117 - Leases FRS118 - Revenue

Notes to the Financial Statements


Notes to the Financial Statements (cont’d)

2. BASIS OF PREPARATION (Cont’d)

2.4 Adoption of Financial Reporting Standards (“FRSs”) (Cont’d)

FRS119 - EmployeeBenefits FRS124 - RelatedPartyDisclosures FRS126 - AccountingandReportingbyRetirementBenefitsPlans FRS127 - ConsolidatedandSeparateFinancialStatements FRS132 - FinancialInstruments:Presentation Amendmentsto FRS132 - FinancialInstruments:Presentation FRS136 - ImpairmentofAssets FRS137 - Provisions,ContingentLiabilitiesandContingentAssets FRS139 - FinancialInstruments:RecognitionandMeasurement FRS140 - InvestmentProperty

AdoptionoftheaboverelevantFRSshasnosignificantimpactonthefinancialstatementsoftheGroupandoftheCompanyexceptforthefollowing:-

FRS7-FinancialInstruments:Disclosures

FRS7andtheconsequentialamendmenttoFRS101-PresentationofFinancialStatementsrequiredisclosureof information about the significance of financial instruments for the Group’s and for the Company’sfinancialpositionandperformance,thenatureandextentofrisksarisingfromfinancialinstrumentsandtheobjectives,policiesandprocessesformanagingcapital.

TheCompanyhaveappliedFRS7prospectivelyinaccordancewiththetransitionalprovisions.Hence,thenewdisclosureshavenotbeenappliedtothecomparatives.ThenewdisclosuresareincludedthroughouttheGroup’sandtheCompany’sfinancialstatementsforthefinancialyearended31March2011.

FRS8-OperatingSegments

FRS8,whichreplacesFRS1142004-SegmentReporting,requiresidentificationofoperatingsegmentsbasedon internal reports that are regularly reviewed by the Group’s chief operating decisionmaker in ordertoallocate resources to thesegmentsand toassess theirperformance.Prior to1April2010, theGroupidentifiestwosetsofsegments(businessandgeographical)usingarisksandrewardsapproach,withtheGroup’s systemof internalfinancial reporting tokeymanagementpersonnel servingonlyas thestartingpointfortheidentificationofsuchsegments.

TheGroup concluded that the reportableoperating segmentsdetermined in accordancewith FRS8 arethe same as the business segments previously identified under FRS 114. TheGroup has adopted FRS 8retrospectively.Thesereviseddisclosures,includingtherelatedrevisedcomparativeinformationareshowninNote26totheFinancialStatements.

FRS101-PresentationofFinancialStatements(Revised)

The revisedFRS101 introduceschanges in thepresentationanddisclosuresoffinancial statements.TherevisedStandardseparatesownerandnon-ownerchanges inequity.Thestatementofchanges inequityincludes only details of transactionswith owners, with all non-owner changes in equity presented as asingleline.TheStandardalsointroducesthestatementofcomprehensiveincome,withallitemsofincomeandexpenserecognisedinprofitorloss,togetherwithallotheritemsofincomeandexpensesrecogniseddirectlyinequity,eitherinonesinglestatement,orintwolinkedstatements.TheGroupandtheCompanyhaselectedtopresentthisstatementasonesinglestatement.




2.4 Adoption of Financial Reporting Standards (“FRSs”) (Cont’d)

FRS101-PresentationofFinancialStatements(Revised)(Cont’d)

Astatementoffinancialpositionisrequiredatthebeginningoftheearliestcomparativeperiodfollowingachangeinaccountingpolicy,thecorrectionofanerrorortheclassificationofitemsinthefinancialstatements.TherevisedFRS101alsorequirestheGroupandtheCompanytomakenewdisclosurestoenableusersofthefinancialstatementstoevaluatetheGroup’sandtheCompany’sobjectives,policiesandprocessesformanagingcapital.

TherevisedFRS101wasadoptedretrospectivelybytheGroupandbytheCompany.

AmendmenttoFRS117Leases

TheamendmenttoFRS117clarifiedthatleasesoflandareclassifiedasoperatingorfinanceleasesinthesamewayasleasesofotherassets.Theamendmentalsoclarifiedthatthepresentvalueoftheresidualvalueofthepropertyinaleasewithatermofseveraldecadeswouldbenegligibleandaccountingforlandelementasafinanceleaseinsuchcircumstanceswouldbeconsistentwitheconomicpositionofthelessee.Therefore,adoptionofamendmenttoFRS117hasresultedinreclassificationofcertainunexpiredlandleasestofinanceleases.TheGroupandtheCompanyhaveappliedthechangeinaccountingpolicyretrospectivelyandcertaincomparativeshavebeenrestated.

EffectsontheStatementsofFinancialPositionareshownbelow:- Group Change in accounting policy Increase/ Before After (Decrease) 31 March 2010 RM RM RM Statements of Financial Position Prepaidlandleasepayments 1,518,247 - (1,518,247) Property,plantandequipment 17,800,561 19,318,808 1,518,247

Change in accounting policy Increase/ Before After (Decrease) 31 March 2009 RM RM RM

Statements of Financial Position Prepaidlandleasepayments 1,643,466 - (1,643,466) Property,plantandequipment 19,897,717 21,541,183 1,643,466

FRS139-FinancialInstruments:RecognitionandMeasurement

FRS139establishesprinciplesforrecognisingandmeasuringfinancialassets,financialliabilitiesandsomecontractstobuyandsellnon-financialitems.TheGroupandtheCompanyhasadoptedFRS139prospectivelyon1April2010inaccordancewiththetransitionalprovisions.Comparativesarenotrestated.




2.5 Standards issued but not yet effective

The following are standards and IC Interpretationswhich are not yet effective and have not been earlyadoptedbytheGroupandbytheCompany:-

Effectiveforaccountingperiodbeginningonorafter1July2010

FRS1 - First-timeAdoptionofFinancialReportingStandards(Revised) FRS3 - BusinessCombinations(Revised) FRS127 - ConsolidatedandSeparateFinancialStatements(Revised) AmendmentstoFRS2 - Share-basedPayment AmendmentstoFRS5 - Non-currentAssetsHeldforSaleandDiscontinuedOperations

AmendmentstoFRS138 - IntangibleAssets Amendmentsto - ReassessmentofEmbeddedDerivatives ICInterpretation9 ICInterpretation12 - ServiceConcessionArrangements ICInterpretation16 - HedgesofaNetInvestmentinaForeignOperation ICInterpretation17 - DistributionsofNon-cashAssetstoOwners Effectiveforaccountingperiodbeginningonorafter1January2011 AmendmentstoFRS1 - LimitedExemptionfromComparativeFRS7DisclosuresforFirst-time Adopters AmendmentstoFRS1 - AdditionalExemptionsforFirst-timeAdopters AmendmentstoFRS2 - GroupCash-settledShare-basedPaymentsTransactions AmendmentstoFRS7 - ImprovingDisclosuresaboutFinancialInstruments

ICInterpretation4 - DeterminingWhetheranArrangementContainsaLease ICInterpretation18 - TransfersofAssetsfromCustomers AmendmentstoFRS1 - Accountingpolicychangesintheyearofadoption,revaluationbasisas deemedcostandtheuseofdeemedcostforoperationssubjecttorate regulation AmendmentstoFRS3 - Measurementofnon-controllinginterestsandun-replacedand voluntarilyreplacedshare-basedpaymentsawards




2.5 Standards issued but not yet effective (Cont’d)

The following are standards and IC Interpretationswhich are not yet effective and have not been earlyadoptedbytheGroupandbytheCompany(Cont’d):-

Effectiveforaccountingperiodbeginningonorafter1January2011(Cont’d)

AmendmentstoFRS7 - Clarificationofdisclosuresandtransitionrequirementsforcontingent considerationfromabusinesscombinationthatoccurredbeforethe effectivedateoftherevisedFRS AmendmenttoFRS101 - Clarificationofstatementofchangesinequity

AmendmenttoFRS121 - TransitionrequirementsforamendmentsarisingasaresultofFRS127 ConsolidatedandSeparateFinancialStatements AmendmenttoFRS128 - TransitionrequirementsforamendmentsarisingasaresultofFRS127 ConsolidatedandSeparateFinancialStatements AmendmenttoFRS131 - TransitionrequirementsforamendmentsarisingasaresultofFRS127 ConsolidatedandSeparateFinancialStatements AmendmenttoFRS132 - Transitionrequirementsforcontingentconsiderationfromabusiness combinationthatoccurredbeforetheeffectivedateoftherevisedFRS AmendmenttoFRS134 - Significanteventsandtransactions AmendmenttoFRS139 - Transitionrequirementsforcontingentconsiderationfromabusiness combinationthatoccurredbeforetheeffectivedateoftherevisedFRS Amendmentto - Amendmentrelatingtofairvalueofawardcredits ICInterpretation13

Effectiveforaccountingperiodbeginningonorafter1January2012

FRS124 - RelatedPartyDisclosures(Revised) ICInterpretation15 - AgreementsfortheConstructionofRealEstate

The existing FRS 1, 3, 124 and 127 will be withdrawn upon the adoption of the new requirements. ICInterpretation15will replaceFRS2012004-PropertyDevelopmentActivities. IC Interpretation8and11willbewithdrawn upon the application of Amendments to FRS 2-Group Cash-Settled Share-based PaymentTransactions.




2.5 Standards issued but not yet effective (Cont’d)

The following are standards and IC Interpretationswhich are not yet effective and have not been earlyadoptedbytheGroupandbytheCompany(Cont’d):-

TheDirectorsanticipatethattheadoptionofthesenew/revisedFRS,amendmentstoFRSandICInterpretationswillhavenomaterialimpactonthefinancialstatementsoftheGroupandoftheCompanyintheperiodforinitialapplicationexceptforthefollowing:

IC Interpretation 17 Distributions of Non-cash Assets to Owners

Thisinterpretationprovidesguidanceonaccountingforarrangementswherebyanentitydistributesnon-cashassetstoshareholderseitherasadistributionofreservesorasdividends.TheGroupandtheCompanyshouldmeasurethedividendpayableatthefairvalueoftheassetstobedistributedwhenthedividendisappropriatelyauthorisedandisnolongeratthediscretionoftheGroupandoftheCompany.Onsettlementofthedividend,thedifferencebetweenthedividendpaidandthecarryingamountoftheassetsdistributedisrecognisedinprofitorloss.Ifthedividendremainsunpaidattheendofthefinancialyearend,thedividendpayablecarryingamountisreviewedwithanychangesrecognisedinequity.

FRS 124 Related Party Disclosures (Revised)

Therevisedstandardmodifiesthedefinitionofarelatedpartyandsimplifiesdisclosuresforgovernment-related entities. The disclosure exemptions introduced in the standard do not affect theGroup and theCompanybecausetheGroupandtheCompany isnotagovernment-relatedentity.However,disclosuresregardingrelatedpartytransactionsandbalancesintheseconsolidatedfinancialstatementsmaybeaffectedwhentherevisedstandardisappliedinfutureaccountingperiodsbecausesomecounterpartiesthatdidnotpreviouslymeetthedefinitionofarelatedpartymaycomewithinthescopeoftheStandard.

FRS 3 Business Combinations (Revised)

The revised standard continues to apply the acquisition method to business combinations, with somesignificantchanges.Allpaymentstopurchaseabusinessaretoberecordedatfairvalueattheacquisitiondate,withcontingentpaymentsclassifiedasdebtsubsequentlyre-measuredthroughtheincomestatement.Thereisachoicetomeasurethenon-controllinginterestintheacquireeatfairvalueoratthenon-controllinginterest’sproportionateshareoftheacquiree’snetassets.Allacquisition-relatedcostsshouldbeexpensed.

FRS 127 Consolidated and Separate Financial Statements (Revised)

Therevisedstandardrequirestheeffectsofalltransactionswithnon-controllingintereststoberecordedinequityifthereisnochangeincontrolandthesetransactionswillnolongerresultingoodwillorgainsandlosses.Thestandardalsospecifiestheaccountingwhencontrolislost.Anyremaininginterestintheentityisremeasuredtofairvalue,andagainorlossisrecognisedinprofitorloss.Lossesarerequiredtoallocatetonon-controllinginterests,evenifitresultsinthenon-controllinginteresttobeinadeficitposition.

2.6 Significant Accounting Estimates and Judgements

Estimates,assumptionsconcerningthefutureandjudgementsaremadeinthepreparationofthefinancialstatements.TheyaffecttheapplicationoftheGroup’saccountingpoliciesandreportedamountsofassets,liabilities, incomeand expenses, anddisclosuresmade. They are assessedon anon-going basis and arebasedonexperienceandrelevantfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.Theactualresultsmaydifferfromtheestimates.




2.6 Significant Accounting Estimates and Judgements (Cont’d)

Keysourcesofestimationuncertainty

Thekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthereportingdate, that have significant risk of causing amaterial adjustment to the carrying amounts of assets andliabilitieswithinthenextfinancialyeararediscussedbelow:-

Impairment of property, plant and equipment

TheGroup’scarriedouttheimpairmenttestbasedonavarietyofestimationincludingthevalue-in-useofthecash-generatingunittowhichtheproperty,plantandequipmentisallocated.Estimatingthevalue-in-userequirestheGrouptomakeanestimateoftheexpectedfuturecashflowsfromcash-generatedunitandalsotochooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.

Income taxes

Significant judgement is involved in determining the Group-wide provision for income taxes. There arecertain transaction and computations for which the ultimate tax determination is uncertain during theordinarycourseofbusiness.TheGrouprecognisestaxliabilitiesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferencewillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.

Deferred tax assets

Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,unutilisedtaxlosses,unabsorbedcapitalallowancesandunusedtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableagainst which all the deductible temporary differences, unutilised tax losses and unabsorbed capitalallowances can be utilised. Significantmanagement judgement is required to determine the amount ofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.

Depreciation of property, plant and equipment

Property, plant and equipment are depreciated on a straight-line basis over their useful life. Significantjudgementisinvolvedinestimatingtheusefullifeoftheseassets.Changesintheexpectedlevelusageandtechnologicaldevelopmentscouldimpacttheeconomicusefullifeandtheresidualvaluesoftheseassets,thereforefuturedepreciationchargescouldberevised.

Impairment of receivable

TheGroupassessesateachreportingdatewhetherthereisanyobjectiveevidencethatafinancialassetsisimpaired.Todeterminewhetherthereisobjectiveevidenceofimpairment,theGroupconsidersfactorssuchastheprobabilityofinsolvencyorsignificantfinancialdifficultiesofthereceivablesanddefaultorsignificantdelayinpayments.

Wherethereisobjectiveevidenceofimpairment,theamountandtimingoffuturecashflowsareestimatedbasedonhistoricallossexperienceforassetswithsimilarcreditriskcharacteristic.

Allowance for inventories

Themanagement reviews inventories to identifydamaged,obsolete and slowmoving inventorieswhichrequirejudgementandchangesinsuchestimatescouldresultinrevisiontovaluationofinventories.



3. SIGNIFICANT ACCOUNTING POLICIES

3.1 Accounting convention

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedunderthehistoricalcostconvention,unlessotherwiseindicatedinthesummaryofsignificantaccountingpolicies.

3.2 Basis of consolidation

TheGroup financial statements consolidate the audited financial statements of the Company and all ofits subsidiarycompanies,whichhavebeenprepared inaccordancewith theGroup’saccountingpolicies.AmountsreportedinthefinancialstatementsofsubsidiarieshavebeenadjustedwherenecessarytoensureconsistencywiththeaccountingpoliciesadoptedbytheGroup.ThefinancialstatementsoftheCompanyanditssubsidiarycompaniesarealldrawnuptothesamereportingdate.

UnrealisedgainsandlossesontransactionsbetweenGroupcompaniesareeliminated.Whereunrealisedlosses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested forimpairmentfromagroupperspective.

Businesscombinationsareaccountedforusingthepurchasemethod.Thepurchasemethod involvestherecognition of the acquiree’s identifiable assets and liabilities, including contingent liabilities, regardlessof whether they were recorded in the financial statements prior to acquisition. The cost of a businesscombinationismeasuredastheaggregateofthefairvalues,atthedateofexchange,oftheassetsgiven,liabilities incurred or assumed, and equity instruments issued, plus any cost directly attributable to thebusinesscombination.Adjustmentstothosefairvaluesrelatingtopreviouslyheldinterestaretreatedasarevaluationandrecognisedinothercomprehensiveincome.

Anyexcessof thecostof thebusinesscombinationover thegroup’s interest in thenet fairvalueof theidentifiable assets, liabilities and contingent liabilities represents goodwill on the Statement of FinancialPosition.ThegoodwillisaccountedforinaccordancewiththeaccountingpolicyforgoodwillstatedinNote3.3totheFinancialStatements.

Anyexcessofthegroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesoverthecostofbusinesscombinationisrecognisedasincomeintheStatementofComprehensiveIncomeonthedateofacquisition.

WhentheGroupacquiresabusiness,embeddedderivativesseparatedfromthehostcontractbytheacquirearereassessedonacquisitionunlessthebusinesscombinationresultsinachangeinthetermsofthecontractthatsignificantlymodifiedthecashflowswouldotherwiseberequiredunderthecontract.

MinorityinterestrepresentstheportionofprofitorlossandnetassetsinsubsidiariesnotheldbytheGroup.ItispresentedseparatelydisclosedintheprofitorlossoftheGroup,andwithintheequityintheconsolidatedstatementsoffinancialposition, separately fromparentshareholders’equity.Transactionswithminorityinterestareaccountedforusingtheentityconceptmethod,whereby,transactionswithminorityinterestareaccountedforastransactionswithowners.Onacquisitionofminorityinterest,thedifferencebetweentheconsiderationandbookvalueoftheshareofthenetassetsacquiredisrecogniseddirectlyinequity.Gainorlossondisposaltominorityinterestisrecogniseddirectlyinequity.

SubsidiariesareconsolidatedusingthepurchasemethodofaccountingfromthedateonwhichcontrolistransferredtotheGroupandarenolongerconsolidatedfromthedatethatcontrolceases.

ThegainorlossondisposalofasubsidiaryisthedifferencebetweennetdisposalproceedsandtheGroup’sshare of its net assets together with any unimpaired balance of goodwill on acquisition and exchangedifferences.



3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

3.3 Goodwill GoodwillrepresentstheexcessofthecostofacquisitionovertheGroup’sinterestinthefairvalueofthe

identifiableassets,liabilitiesandcontingentliabilitiesofasubsidiary,associateandjointlycontrolledentitiesatthedateofacquisition.

Goodwill arising on the acquisition of subsidiaries is presented separately in the statement of financialpositionwhile goodwill arising on the acquisitionof associate is includedwithin the carrying amount ofinvestmentinassociate.

Followinginitialrecognition,goodwillismeasuredatcostlessanyaccumulatedimpairmentlosses.Goodwillisreviewedforimpairment,annuallyormorefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingvaluesmaybeimpaired.

Forthepurposeofimpairmenttesting,goodwillacquiredinabusinesscombinationis,fromtheacquisitiondate,allocatedtoeachoftheGroup’scash-generatingunits,orgroupsofcash-generatingunits,thatareexpectedtobenefitfromthesynergiesofthecombination.

Acash-generatingunit(orgroupofcash-generatingunits)towhichgoodwillhasbeenallocatedistested

forimpairmentannuallyand,wheneverthereisanindicationthattheunitmaybeimpaired,bycomparingthecarryingamountoftheunit, includinggoodwill,withtherecoverableamountoftheunit.Wheretherecoverableamountofthecash-generatingunit(orgroupofcash-generatingunits)islessthanthecarryingamount,animpairmentlossisrecognisedintheprofitorloss.Impairmentlossesrecognisedforgoodwillarenotreversedinsubsequentperiod.

Animpairmentlossrecognisedforgoodwillshouldnotbereversedinsubsequentperiod.Gainsandlossesonthedisposalofanentityincludethecarryingamountofgoodwillrelatingtotheentitysold.

Wheregoodwill formspartofacash-generatingunit (orgroupofcash-generatingunits)andpartof theoperations within that unit is disposed off, the goodwill associated with the operations disposed off isincluded in thecarryingamountof theoperationswhendetermining thegainor lossondisposalof theoperations.Goodwilldisposedoffinthesecircumstancesismeasuredbasedontherelativefairvaluesoftheoperationsdisposedoffandportionofthecash-generatingunitretained.

3.4 Subsidiaries AsubsidiaryisacompanyinwhichtheGrouportheCompanyhasthepowertoexercisecontroloverthe

financialandoperatingpolicies soas toobtainbenefits from itsactivities. Inassessingcontrol,potentialvotingrightsthatpresentlyareexercisablearetakenintoaccount.

InvestmentinsubsidiariesisstatedatcostorinaccordancewithFRS139lessanyimpairmentlossesintheCompany’sfinancialposition.

3.5 Associates

AnassociateisacompanyinwhichtheCompanyortheGrouphasalongtermequityinterestofbetween20to50percentandwhereitexercisessignificantinfluenceoveritsfinancialandoperatingpoliciesthroughmanagementparticipationbutnottoexertcontroloverthosepolicies.




3.5 Associates (Cont’d)

InvestmentinassociatesisaccountedforintheconsolidatedfinancialstatementsusingequityaccountingwhichinvolvesrecognisingintheprofitorlosstheGroup’sshareoftheresultsofassociatebasedontheauditedfinancialstatementsoftheassociate.TheGroup’sinvestmentinassociateiscarriedinthestatementoffinancialpositionatanamountthatreflectsitsshareofthenetassetsoftheassociate.Equityaccountingisdiscontinuedwhenthecarryingamountoftheinvestmentinanassociatereacheszero,unlesstheGrouphasincurredobligationsorguaranteedobligationsinrespectoftheassociate.

Investmentinassociateisstatedatcost.Whereanindicationofimpairmentexists,thecarryingamountoftheassociateisassessedandwrittendownimmediatelytoitsrecoverableamount.

3.6 Property, plant and equipment and depreciation

Property, plant and equipment are initially stated at cost. The cost of an item of property, plant andequipmentisrecognisedasanassetsifandonlyif,itisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCompanyandthecostoftheitemcanbemeasuresreliably.Allotherproperty,plantandequipmentarestatedathistoricalcost lessaccumulateddepreciationandlessanyimpairmentlosses.

Depreciationofproperty,plantandequipmentisprovidedonthestraightlinemethodinordertowriteoffthecostofeachassetoveritsestimatedusefullife.Nodepreciationisprovidedonfreeholdland.

Theprincipalannualdepreciationratesusedareasfollows:- Leaseholdland 2% Freeholdland - Buildings 2% Buildingimprovementandelectricalinstallation 10% Plant,machinery,factoryequipmentandtools 20% Hotelequipment,furniture,fixtures,clubandofficeequipment 12.5%-33.3% Motorvehicles 20%

Restoration cost relating to an item of the property, plant and equipment is capitalised only if suchexpenditure isexpectedto increasethe futurebenefits fromtheexistingproperty,plantandequipmentbeyonditspreviouslyassessedstandardofperformance.

Property,plantandequipmentarewrittendowntorecoverableamountif,intheopinionoftheDirectors,it is lessthantheircarryingvalue.Recoverableamount isthenetsellingpriceoftheproperty,plantandequipment i.e. theamountobtainable fromthesaleofanasset inanarm’s length transactionbetweenknowledgeable,willingparties,lessthecostsofdisposal.

Theresidualvalues,usefullifeanddepreciationmethodarereviewedateachfinancialyearendtoensurethat the amount, method and period of depreciation are consistent with previous estimates and theexpectedpatternofconsumptionofthefutureeconomicbenefitsembodiedintheitemsofproperty,plantandequipment.

An item of property, plant and equipment is derecognised upon disposal or when no future economicbenefitsareexpectedfromitsuseordisposal.Gainorlossesarisingonthedisposalofproperty,plantandequipmentaredeterminedasthedifferencebetweenthedisposalproceedsandthecarryingamountoftheassetsandarerecognisedinprofitorlossinthefinancialyearinwhichtheassetisderecognised.




3.7 Inventories

Inventoriesofrawmaterials,work-in-progressandfinishedgoodsarevalueatlowerofcostandnetrealisablevaluelessallowanceforobsoleteandslowmovingitems.Costisdeterminedontheweightedaveragebasis.

Costofwork-in-progressandfinishedgoodsincludethecostofmaterials,directlabourandproportionofthemanufacturingoverheads.

Netrealisablevaluerepresentstheestimatedsellingpricelessallestimatescoststocompletionandcoststo

beincurredinmarketing,sellinganddistribution.

3.8 Assets acquired under finance lease arrangements

Thecostofproperty,plantandequipmentacquiredunderfinanceleasearrangementswhichtransferredsubstantially all the risks and rewards of ownership to the Company are capitalised. The depreciationpolicyontheseassetsissimilartothatoftheGroup’sandoftheCompany’sproperty,plantandequipmentdepreciationpolicy.

Outstandingobligationsdueunderfinanceleasearrangementsafterdeductingfinanceexpensesareincludedas liabilities in thefinancial statements. Finance chargesonfinance leasearrangementsareallocated tostatementofcomprehensiveincomeovertheperiodoftherespectiveagreements.

3.9 Impairment of financial assets

TheGroupandtheCompanyassessateachreportingdatewhetherthereisanyobjectiveevidencethatafinancialassetisimpaired.

Trade and other receivables and other financial assets carried at cost

To determinewhether there is objective evidence that an impairment loss on financial assets has beenincurred,theGroupandtheCompanyconsiderfactorssuchastheprobabilityofinsolvencyorsignificantfinancial difficultiesof thedebtor anddefault or significantdelay inpayments. For certain categoriesoffinancial assets, such as trade receivables, assets that are assessed not to be impaired individually aresubsequentlyassessedforimpairmentonacollectivebasisbasedonsimilarriskcharacteristics.Objectiveevidenceof impairment foraportfolioof receivablescould include theGroup’sand theCompany’spastexperienceofcollectingpayments,anincreaseinthenumberofdelayedpaymentsintheportfoliopasttheaveragecreditperiodandobservablechangesinnationalorlocaleconomicconditionsthatcorrelatewithdefaultonreceivables.

Ifanysuchevidenceexists,theamountofimpairmentlossismeasuredasthedifferencebetweentheasset’scarryingamountand thepresent valueofestimated future cashflowdiscountedat thefinancial asset’soriginaleffectiveinterestrate.Theimpairmentlossisrecognisedinprofitorloss.

Thecarryingamountofthefinancialassetisreducedbytheimpairmentlossdirectlyforallfinancialassetswith the exception of trade receivables, where the carrying amount is reduced through the use of anallowanceaccount.Whenatradereceivablebecomesuncollectible,itiswrittenoffagainsttheallowanceaccount.

If inasubsequentperiod,theamountoftheimpairmentlossdecreasesandthedecreasecanberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised,thepreviouslyrecognisedimpairmentlossisreversedtotheextentthatthecarryingamountoftheassetdoesnotexceeditsamortisedcostatthereversaldate.Theamountofreversalisrecognisedinprofitorloss.



3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)3.10 Financial instruments

FinancialassetsandfinancialliabilitiesarerecognisedwhentheGroupandtheCompanybecomeapartytothecontractualprovisionsofthefinancialinstrument.

Financialassetsandfinancialliabilitiesaremeasuredinitiallyatfairvalueplustransactionscosts,exceptforfinancialassetsandfinancialliabilitiescarriedatfairvaluethroughprofitorloss,whicharemeasuredinitiallyatfairvalue.Financialassetsandfinancialliabilitiesaremeasuredsubsequentlyasdescribedbelow.

Embeddedderivativeisrecognisedseparatelyfromthehostcontractandaccountedforasaderivativeif,andonlyif,itisnotcloselyrelatedtotheeconomiccharacteristicsandrisksofthehostcontractandthehostcontractisnotcategorisedatfairvaluethroughprofitorloss.Thehostcontract,intheeventanembeddedderivativeisrecognisedseparately,isaccountedforinaccordancewithpolicyapplicabletothenatureofthehostcontract.

3.10.1 Financial assets

For the purpose of subsequentmeasurement, financial assets other than those designated andeffectiveashedginginstrumentsareclassifiedintothefollowingcategoriesuponinitialrecognition:

a) loansandreceivables; b) financialassetsatfairvaluethroughprofitorloss; c) heldtomaturityinvestments;and d) available-for-salefinancialassets.

Allfinancial assetsexcept for thoseat fair value throughprofitor lossare subject to review forimpairmentatleastateachreportingdate.Financialassetsareimpairedwhenthereisanyobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.

Afinancialassetisderecognisedwherethecontractualrighttoreceivecashflowsfromtheassethasexpiredorwhenthefinancialassetsandallsubstantialrisksandrewardsaretransferred.

Regularwaypurchasesorsalesarepurchasesorsalesoffinancialassetsthatrequiredeliveryofassets within the period generally established by regulation or convention in the marketplaceconcerned.Allregularwaypurchasesandsalesoffinancialassetsarerecognisedorderecognisedonthetradedates.i.e.thedatetheGroupandtheCompanycommittopurchaseorselltheassets.

At thereportingdate, theGroupandtheCompanycarriedonly the loansandreceivableson itsstatementsoffinancialposition.

Loans and receivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Afterinitialrecognitionthesearemeasuredatamortisedcostusingtheeffectiveinterestmethod,lessprovisionforimpairment.Discountingisomittedwheretheeffectofdiscountingisimmaterial.Gainsorlossesarerecognisedinprofitorlosswhentheloansandreceivablesarederecognisedorimpaired,andthroughtheamortisationprocess.TheGroup’scash and cash equivalents, trade andmost other receivables fall into this category of financialinstruments.

Loansandreceivablesareclassifiedascurrentassets,exceptforthosehavingmaturitydateslaterthan12monthsafterthereportingdatewhichareclassifiedasnon-current.




3.10 Financial instruments (Cont’d)

3.10.2 Financial liabilities

Financial liabilities are recognised when the Group and the Company become a party to thecontractual provisions of the financial instrument. Financial liability is derecognised when it isextinguished,discharged,cancelledorexpires.

Aftertheinitialrecognition,financial liabilityisclassifiedasfinancial liabilityatfairvaluethroughprofitor lossorotherfinancial liabilitiesmeasuredatamortisedcostusing theeffective interestmethod.

Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisextinguished,discharged,cancelledorexpired,orthroughamortisationprocess.Whenanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasaderecognitionoftheoriginalliabilityandtherecognitionofanewliability,andthedifferenceintherespectivecarryingamountisrecognisedinprofitorloss.

Other financial liabilities

TheGroup’sandtheCompany’sfinancialliabilitiescompriseborrowings,tradeandotherpayables.

Otherfinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.BorrowingsareclassifiedascurrentliabilitiesunlesstheGroupandtheCompanyhasanunconditionalrighttodefersettlementoftheliabilityforatleast12monthsafterthereportingdate.

3.11 Derivative financial instruments and hedging activities

Derivative are initially recognised at fair value or the date a derivative contract is entered into andsubsequentlyremeasuredattheirfairvalue.Themethodofrecognisingtheresultinggainorlossdependsonwhetherthederivativesdesignatedashedginginstrument,andifso,thenatureoftheitembeinghedged.

3.12 Cash and cash equivalents

Cashandcashequivalentscomprisecashonhand,banksbalances,shorttermdemanddepositsandhighlyliquid investmentswhich are readily convertible to known amount of cash andwhich are subject to aninsignificantriskofchangesinvalue.

3.13 Income tax

Currenttax

Incometaxontheprofitorlossfortheyearcomprisescurrentanddeferredtax.Currenttaxexpensesaretheexpectedamountofincometaxespayableinrespectofthetaxableprofitforthefinancialyearandaremeasuredusingthetaxratesthathavebeenenactedbythereportingperiodandanyadjustmenttotaxpayableinrespectofpreviousyears.




3.13 Income tax (Cont’d)

Deferredtax

Deferredtaxliabilitiesandassetsareprovidedforundertheliabilitymethodatthecurrenttaxrateinrespectofall temporarydifferencesatthereportingdatebetweenthecarryingamountofanassetor liability inthestatementoffinancialpositionanditstaxbaseincludingunabsorbedtaxlossesandunutilisedcapitalallowances.

Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,unutilisedtaxlosses,unabsorbedcapitalallowancesandunusedtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableagainst which all the deductible temporary differences, unutilised tax losses and unabsorbed capitalallowances can be utilised. Significantmanagement judgement is required to determine the amount ofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.

3.14 Borrowing costs

Interestcostsonborrowingstofinancetheconstructionofproperty,plantandequipmentarecapitalisedaspartofthecostofthoseassetsduringtheperiodoftimethatisrequiredtocompleteandpreparetheassetsfortheirintendeduse.

Allotherborrowingcostsareexpensedintheyearinwhichtheyareincurred.

3.15 Provisions

Provisions are recognisedwhen there is a presentobligation, legal or constructive, as a result of a pastevent,whenitisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.Provisionsarenotrecognisedforfutureoperatinglosses.

AnyreimbursementthattheGroupandtheCompanycanbevirtuallycertaintocollectfromathirdpartywithrespecttotheobligation isrecognisedasaseparateasset.However,thisassetmaynotexceedtheamountoftherelatedprovision.

Provisionsarereviewedateachreportingdateandadjustedtoreflectthecurrentbestestimate.Wheretheeffectofthetimeofmoneyismaterial,theamountofprovisionisthepresentvalueoftheexpenditureexpectedtoberequiredtosettletheobligation.

3.16 Foreign currency translations and balances TransactionsinforeigncurrenciesarerecordedinRinggitMalaysiaatratesofexchangerulingatthedateof

thetransactions.Foreigncurrencymonetaryassetsandliabilitiesaretranslatedatexchangeratesrulingatreportingdate.

Gainsand losses resulting fromsettlementofsuchtransactionsandconversionofshort termassetsandliabilities,whetherrealisedorunrealised,areincludedinprofitorlossastheyarise.

Allotherforeignexchangedifferencesaretakentotheprofitorlossinthefinancialyearinwhichtheyarise.




3.16 Foreign currency translations and balances (Cont’d)

Theexchangeratesrulingatthereportingdateareasfollows:- 2011 2010 RM RM 1SingaporeDollar 2.401 2.330 1USD 3.026 3.260 1Euro 4.301 4.392

3.17 Revenue recognition

Revenueisrecognisedtotheextentthatit isprobablethattheeconomicbenefitswillflowtotheGroupand the Company and the revenue can be reliablymeasured. Revenue ismeasured at the fair value ofconsiderationreceivedorreceivable.

3.17.1 Sales of goods

Revenuefromsalesofgoodsismeasuredatfairvalueoftheconsiderationreceiveorreceivable,netofreturnsandallowances,tradediscountsandvolumerebates.Revenueisrecognisedwhenthe significant risk and rewards of ownership have been transferred to the buyers. Revenue isnot recognised to theextentwhere thereare significantuncertainties regarding recoveryof theconsiderationdue,associatedcostorthepossiblereturnsofgoods.

3.17.2 Interest income

Interestincomeisrecognisedonanaccrualbasisusingtheeffectiveinterestmethod.

3.17.3 Rental income

Rentalincomeisaccountedforonastraight-linebasisovertheleaseterms.Theaggregatecostsofincentivesprovidedtolesseesarerecognisedasareductionofrentalincomeovertheleasetermonastraight-linebasis.

3.18 Employee benefits

3.18.1 Short term benefits

Wages,salaries,bonusesandsocialsecuritycontributionsarerecognisedasexpensesintheyearinwhichtheassociatedservicesarerenderedbytheemployeesoftheGroupandoftheCompany.Shorttermaccumulatingcompensatedabsencessuchaspaidannualleavearerecognisedwhenservicesarerenderedbyemployeesthatincreasetheirentitlementtofuturecompensatedabsences,andshorttermnon-accumulatingcompensatedabsencessuchassick leavearerecognisedwhentheabsencesoccurred.




3.18 Employee benefits (Cont’d)

3.18.2 Defined contribution plans

Defined contribution plans are post-employment benefit plans under which the Group andthe Company pays fixed contributions into separate entities of funds andwill have no legal orconstructiveobligationtopayfurthercontributionifanyofthefundsdonotholdsufficientassetstopayallemployeebenefitsrelatingtoemployeeservicesinthecurrentandprecedingfinancialyears.

Suchcontributionsarerecongisedasexpenseintheprofitorlossasincurred.Asrequiredbylaw,companiesinMalaysiamakesuchcontributionstotheEmployeesProvidentFund(“EPF”).

3.19 Contingent liabilities

Acontingentliabilityisapossibleobligationthatarisesfrompasteventsandwhoseexistencewillonlybeconfirmedbytheoccurrenceornon-occurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheCompany.Itcanalsobeapresentobligationarisingfrompasteventsthatisnotrecognisedbecauseitisnotprobablethatoutflowofeconomicresourceswillberequiredortheamountofobligationcannotbemeasured reliably.A contingent liability isnot recognisedbut isdisclosed in thenotes to thefinancialstatements.Whenachangeintheprobabilityofanoutflowoccurssuchthatoutflowisprobableandcanbemeasuredreliably,theywillthenberecognisedasaprovision.

3.20 Equity instrument

Ordinarysharesarerecordedatthenominalvalueandproceedsinexcessofthenominalvalueofsharesissued,ifany,areaccountedforassharepremium.Bothordinarysharesandsharepremiumareclassifiedasequity.Dividendsonordinarysharesunpaidarerecognisedasliabilitieswhendeclared.

Thetransactioncostsofanequitytransactionwhichcompriseonlythoseincrementalexternalcostsdirectlyattributabletotheequitytransactionareaccountedforasadeductionfromequity,netoftax, fromtheproceeds.

3.21 Segment reporting

Operatingsegmentsarereportedinamannerconsistentwiththeinternalreportingprovidedtothechiefoperatingdecisionmaker.Thechiefoperatingdecisionmaker,whoisresponsibleforallocatingresourcesandassessingperformanceoftheoperatingsegments,hasbeenidentifiedtomakestrategicdecisions.


Notes to the Financial Statements (cont’d)4.

PR

OPE

RTY,

PLA

NT

AN

D E

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IPM

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Hot

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Bu

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Build

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el

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eq

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e (r

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la

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inst

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tion

an

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eq

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ent

vehi

cles

To

tal

RM

RM

RM

RM

RM

RM

RM

Co

st

1April20

09

1,83

4,71

6-

15,199

,957

3,09

0,12

718

,600

,972

70

3,33

239

,429

,104

Acquisitio

nofasub

sidiary

-

500,00

0-

--

-50

0,00

0

Add

ition

s

--

415,38

870

,140

49

6,96

3-

982,49

1

Dispo

sals

-

--

-(23,74

1)

-(23,74

1)

Written

off

-

--

(8,296

)(836

)-

(9,132

)

Tran

slati

ondifferen

ces

(95,75

0)

-(548

,035

)-

(1,729

,021

)(9,498

)(2,382

,304

)

At3

1March201

0

1,73

8,96

650

0,00

015

,067

,310

3,15

1,97

117

,344

,337

69

3,83

438

,496

,418

Add

ition

s

--

170,51

030

9,76

618

0,81

815

1,08

081

2,17

4

Dispo

sals

-

--

(3,550

)(30,68

4)

(107

,656

)(141

,890

)

Written

off

-

--

-(77,56

7)

-(77,56

7)

Tran

slati

ondifferen

ces

(59,75

0)

-(347

,888

)-

(1,105

,202

)(5,927

)(1,518

,767

)

At3

1March201

1

1,67

9,21

650

0,00

014

,889

,932

3,45

8,18

716

,311

,702

73

1,33

137

,570

,368


Notes to the Financial Statements (cont’d)4.

PR

OPE

RTY,

PLA

NT

AN

D E

QU

IPM

ENT

(Con

t’d)

Hot

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Bu

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RM

RM

RM

RM

RM

RM

RM

Dep

reci

ation

and

impa

irm

ent l

oss

1April20

09

19

1,25

0-

1,54

5,01

23,06

4,06

112

,600

,011

48

7,58

717

,887

,921

Dep

reciati

onfo

rtheyear

19

32,662

-

708,61

520

,468

1,88

5,74

887

,084

2,73

4,57

7

Dispo

sals

-

--

-(21,77

9)

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Written

off

-

--

(8,288

)(258

)-

(8,546

)

Tran

slati

ondifferen

ces

(3,193

)-

(84,42

1)

-(1,323

,783

)(3,166

)(1,414

,563

)

At3

1March201

0

Accum

ulated

dep

reciati

on

22

0,71

9-

2,16

9,20

63,07

6,24

17,43

9,02

157

1,50

513

,476

,692

Accum

ulated

impa

irmen

tloss

-

--

-5,70

0,91

8-

5,70

0,91

8

220,71

9-

2,16

9,20

63,07

6,24

113

,139

,939

57

1,50

519

,177

,610

Dep

reciati

onfo

rtheyear

19

31,108

-

664,27

851

,987

1,55

7,68

854

,610

2,35

9,67

1

Dispo

sals

-

--

(3,550

)(30,47

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(107

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)(141

,680

)

Written

off

-

--

-(61,08

2)

-(61,08

2)

Tran

slati

ondifferen

ces

(3,185

)-

(87,70

7)

-(925

,718

)(3,160

)(1,019

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At3

1March201

1

Accum

ulated

dep

reciati

on

24

8,64

2-

2,74

5,77

73,12

4,67

87,97

9,43

451

5,30

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,831

Accum

ulated

impa

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0,91

8-

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8

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1March201

1

1,43

0,57

450

0,00

012

,144

,155

33

3,50

92,63

1,35

021

6,03

117

,255

,619

At3

1March201

0

1,51

8,24

750

0,00

012

,898

,104

75

,730

4,20

4,39

812

2,32

919

,318

,808



4. PROPERTY, PLANT AND EQUIPMENT (Cont’d)

Furniture, fixtures and office Company Note Buildings equipment Total RM RM RM Cost At1April2009 6,075,716 1,398,222 7,473,938 Additions 334,755 61,396 396,151 At31March2010 6,410,471 1,459,618 7,870,089 Additions 169,420 - 169,420 Writtenoff - (29,881) (29,881) At31March2011 6,579,891 1,429,737 8,009,628 Accumulated depreciation At1April2009 121,514 234,211 355,725 Depreciationfortheyear 19 125,978 281,963 407,941 At31March2010 247,492 516,174 763,666 Depreciationfortheyear 19 128,492 281,567 410,059 Writtenoff - (29,371) (29,371) At31March2011 375,984 768,370 1,144,354 Carrying amounts At31March2011 6,203,907 661,367 6,865,274 At31March2010 6,162,979 943,444 7,106,423

i) Assets under finance lease

Includedunderproperty,plantandequipmentoftheGroupisacarryingamountofmotorvehiclesamountingtoRM188,512(2010:RM76,444)acquiredunderfinanceleaseinstalmentplans.

ii) Security

ThebuildingsoftheGroupandtheCompanywiththecarryingamountofRM9,026,645(2010:RM9,061,113)andRM6,203,907(2010:RM6,162,979)respectivelyarepledgedforbankingfacilities(seeNote15).

ThetitledeedsoftheGroup’sandtheCompany’sbuildingshavebeenissuedandnowareintheprocessof

executingtheMemorandumofTransferbytherelevantauthorities.

FreeholdlandhasbeenpledgedforfacilitiesgrantedtoaformerDirectorofasubsidiary.

Inthecurrentfinancialyear,themanagementbelievesthattherecoverableamountsoftheassetsmaynotbesignificantlydifferentfromtheircarryingamount,thusnoimpairmentnorreversalsofimpairmentweremadeduringtheyear.



5. INVESTMENTS IN SUBSIDIARIES

Company 2011 2010 RM RM Unquotedshares,atcost 5,261,134 5,261,134 Less:Allowanceforimpairmentloss (1,286,130) (1,286,130) 3,975,004 3,975,004

Detailsofthesubsidiariesareasfollows:

Equity Place of ownership Name of subsidiary incorporation interest Principal activities 2011 2010 WireMasterSpringSdn.Bhd. Malaysia 96% 96% Manufacturingofprecision springs EPAAutomationSdn.Bhd. Malaysia 100% 100% Ceasedoperations EPAAutomationPteLtd*◊ Republicof 100% 100% Ceasedoperations Singapore

GoldwealthCapitalSdn.Bhd. Malaysia 100% 100% Tradinginconsumerproducts GWPremiumCapitalSdn.Bhd. Malaysia 100% 100% Tradinginconsumer productsandproviding financingservices ProbusinessInvestmentsLimited BritishVirgin 100% 100% Investmentholdingand Islands gamingoperations Subsidiary of Goldwealth Capital Sdn. Bhd. -GWCapitalSdn.Bhd* Malaysia 100% 100% Dormant Subsidiaries of Probusiness Investments Limited -AceUnicornLimited BritishVirgin 60% 60% Provisionofclubequipmentfor Islands gamingoperations -RemarkableGroupLimited BritishVirgin 50% 50% Provisionofclubequipmentand Islands managementservicesfor gamingoperations -EnseliniInternationalLimited BritishVirgin 65% 65% Ceasedoperations Islands

-AsiaPacificWinningLimited BritishVirgin 100% 100% Investmentholding Islands



5. INVESTMENTS IN SUBSIDIARIES (Cont’d)

Equity Place of ownership Name of subsidiary incorporation interest Principal activities 2011 2010

Subsidiary of Asia Pacific Winning Limited -Lao-MalaysiaInvestmentsGroup Republicof 75% 75% Hoteloperations Laos

Subsidiary of Remarkable Group Limited -RichLeeHoldingsSdnBhd*# Malaysia 100% 100% Dormant

* SubsidiariesnotauditedbySJGrantThornton

◊ The auditors’ report of the financial statements of the subsidiary contains an emphasis of matter onuncertaintiesoveritsabilitytocontinueasagoingconcern.

# Theauditors’reportofthefinancialstatementsofthesubsidiarycontains:-

i) Adisclaimeropinionasthesubsidiary’sfreeholdlandhasbeenpledgedtoabankforbankingfacilitiesgranted toa formerdirector (asmentioned inNote17.2(i)).Theauditorswereunable toascertaintherepaymentstatusofthesaidloanandaccordingly,todeterminewhetheranyadjustmentswerenecessaryinrespectofthepropertyconcerned.

ii) Emphasisofmatteronuncertaintiesoverthesubsidiary’sabilitytocontinueasagoingconcern.

6. INVESTMENT IN ASSOCIATE

Group 2011 2010 RM RM UnquotedsharesoutsideMalaysia,atcost 60,520 - Representedby: Shareofnetassets 60,520 -

Detailsoftheassociateisasfollows:

Equity Place of ownership Name of associate incorporation interest Principal activities 2011 2010

GoldshoreCapitalLimited* BritishVirgin 40% - Gamingoperations Islands

* AssociatenotauditedbySJGrantThornton



6. INVESTMENT IN ASSOCIATE (Cont’d)

Thesummarisedfinancialinformationoftheassociateisasfollows:-

Group 2011 2010 RM RM Assets and liabilities: Totalassets 4,780,429 - Totalliabilities (4,932,250) - (151,821) -

Lossforthefinancialyear 315,092 -

7. GOODWILL ON CONSOLIDATION

2011 2010 RM RM Carrying amount At1April - - Acquisitionofasubsidiary - 28,220 Impairmentlossfortheyear - (28,220) At31March - -

Impairment

Thegoodwillarisingfromtheacquisitionofthesubsidiarywasfullyimpairedduringthepreviousfinancialyearasthesubsidiarywasinactiveatthedateofacquisition.

8. RECEIVABLES, DEPOSITS AND PREPAYMENTS

Note Group Company 2011 2010 2011 2010 RM RM RM RM Non-current Trade Tradereceivables 7,402,597 11,842,840 - - Less:Unearnedservicecharges (2,219,902) (3,950,309) - - Totalnon-currentreceivables 8.1 5,182,695 7,892,531 - -



8. RECEIVABLES, DEPOSITS AND PREPAYMENTS (Cont’d)

Note Group Company 2011 2010 2011 2010 RM RM RM RM Current Trade Tradereceivables 4,660,425 6,289,329 - - Less:Unearnedservicecharges (907,932) (1,498,607) - - 3,752,493 4,790,722 - - Less:Allowanceforimpairmentloss (949,379) (993,852) - - 8.1 2,803,114 3,796,870 - - Non-trade Amountduefromsubsidiaries - - 26,733,436 30,902,746 Less:Allowanceforimpairmentloss - - (14,241,793) (13,151,934) 8.2 - - 12,491,643 17,750,812 Dividendreceivable - - 3,000,000 3,000,000 Otherreceivables 8.3 9,300,339 9,670,559 5,003,220 5,022,112 Deposits 145,214 135,531 76,438 76,943 Prepayments 72,423 183,746 19,374 135,931 Less:Allowanceforimpairmentloss (7,046,578) (7,208,221) (5,000,000) (5,000,000) 2,471,398 2,781,615 3,099,032 3,234,986 Totalcurrentreceivables 5,274,512 6,578,485 15,590,675 20,985,798

Themovementinallowanceforimpairmentlossintradereceivablesisasfollows:-

Group Company 2011 2010 2011 2010 RM RM RM RM Broughtforward 993,852 1,047,423 - - Impairmentlossrecognised 19,016 126,584 - - Impairmentlossreversed (11,511) - Translationdifferences (51,978) (180,155) - - Carriedforward 949,379 993,852 - -

ThenormaltradecredittermsgrantedbytheGroupandtheCompanytothetradereceivablesrangefrom30to90days(2010:30to90days).



8. RECEIVABLES, DEPOSITS AND PREPAYMENTS (Cont’d)

Themovementinallowanceforimpairmentlossinnon-tradereceivablesisasfollows:-

Group Company 2011 2010 2011 2010 RM RM RM RM Broughtforward 7,208,221 7,333,659 18,151,934 17,637,965 Impairmentlossrecognised - - 1,089,859 513,969 Translationdifferences (161,643) (125,438) - - Carriedforward 7,046,578 7,208,221 19,241,793 18,151,934

8.1 (i) The trade receivables are expected to be collected as follows :

2011 2010 RM RM Withinoneyear 2,803,114 3,796,870 Oneyeartofiveyears 3,176,114 4,323,541 Morethanfiveyears 2,006,581 3,568,990 7,985,809 11,689,401

(ii) Analysis of foreign currency exposure for significant receivables

Significant receivables that arenot denominated in the functional currencyof theGroupentities are asfollows:

Group Company 2011 2010 2011 2010 Functional Foreign RM RM RM RM currency currency RM USD 64,388 63,432 - -

8.2 Amounts due from subsidiaries

Thereceivablesduefromsubsidiariesareunsecured,interestfreeandrepayableondemand.

8.3 Other receivables

i) IncludedinotherreceivablesoftheGroupisanamountofRM2,046,578(2010:RM3,141,711)beingadvancestocluboperatorsforthegamingoperations.AllowanceforimpairmentlossofRM2,046,578(2010:RM2,208,221)hasbeenmadeasatreportingdate.

ii) Included inother receivablesof theGroup isanamountofRMNil (2010:RM631,974) that relates

topaymentsmadetocertainpartiesforthepurposeofapplicationofelectronicgaminglicencesforgamingbusinessintwospecifiedhotelslocatedinVietnam.

iii) IncludedinotherreceivablesoftheGroupandoftheCompanyisanamountofRM5,000,000(2010:RM5,000,000)respectivelyduefromathirdpartywhichisunsecured,interest-freeandrepayableondemand.Allowanceforimpairmentlosshasbeenfullymadeforasatreportingdate.



9. INVENTORIES

Group 2011 2010 RM RM Atcost: Rawmaterials 546,432 480,807 Manufacturedinventories 248,100 201,602 794,532 682,409

InventoriesamountedtoRM194,270(2010:RM175,385)asatthereportingdateareconsideredslowmovingandfullallowanceforslowmovinginventorieshavebeenmade.

10. AMOUNT DUE FROM ASSOCIATE

Theamountduefromassociateisunsecured,interestfreeandrepayableondemand.

11. CASH AND CASH EQUIVALENTS

Group Company 2011 2010 2011 2010 RM RM RM RM Shorttermdepositswithlicensedbanksand financialinstitutions 8,066,847 2,140,493 - - Fixeddepositswithlicensedbanksand financialinstitutions 741,861 2,115,123 - - 8,808,708 4,255,616 - - Cashandbankbalances 946,448 1,044,708 141,388 857 9,755,156 5,300,324 141,388 857

Analysis of foreign currency exposure for significant cash and cash equivalents

SignificantcashandbankbalancesthatarenotdenominatedinthefunctionalcurrencyoftheGroupentitiesareasfollows:

Group Company 2011 2010 2011 2010 Functional Foreign RM RM RM RM currency currency RM USD 197,906 192,930 - -



12. SHARE CAPITAL

Group and Company 2011 2010 Number of Number of Amount shares Amount shares RM RM OrdinarysharesofRM1each Authorised 150,000,000 150,000,000 150,000,000 150,000,000 Issuedandfullypaid: Balanceat31March 44,753,400 44,753,400 44,753,400 44,753,400

13. RESERVES

Note Group Company 2011 2010 2011 2010 RM RM RM RM Non-distributable Sharepremium 13.1 132,167 132,167 132,167 132,167 Exchangefluctuationreserve 13.2 (682,652) (1,227,780) - - (550,485) (1,095,613) 132,167 132,167 Accumulatedlosses (13,795,197) (12,797,421) (23,194,436) (23,316,009) (14,345,682) (13,893,034) (23,062,269) (23,183,842)

13.1 Share premium

ThesharepremiumaccountarosefromtheprivateplacementnetofshareissueexpensesandESOSexercisedinprioryears.

13.2 Exchange fluctuation reserve

Exchangefluctuationreservecomprisesforeigncurrencydifferencesarisingfromthetranslationoffinancialstatementsofforeignoperations.

14. MINORITY INTEREST

Thisconsistsofminorityshareholders’proportionofsharecapitalandreservesofsubsidiaries.



15. BORROWINGS

Note Group Company 2011 2010 2011 2010 RM RM RM RM

Current Termloan-secured 15.3 449,160 260,186 449,160 260,186 Financeleaseliabilities 15.4 63,454 72,336 - - 512,614 332,522 449,160 260,186 Non-current Termloan-secured 15.3 4,273,227 4,692,590 4,273,227 4,692,590 Financeleaseliabilities 15.4 93,759 48,793 - - 4,366,986 4,741,383 4,273,227 4,692,590

15.1 Securities

Group/Company

ThetermloanissecuredbytheCompany’sbuilding.

Thebankoverdraftissecuredbyasubsidiary’sleaseholdlandandbuilding.Thebankoverdraftisnotutilisedduringthefinancialyear.

15.2 Interest rate

Group/Company

Thetermloanissubjecttointerestrateat1.50%(2010:1.50%)abovebank’sprevailing3monthseffectivecostoffund.

Thebankoverdraftissubjecttointerestrateat1.25%(2010:1.25%)abovebaselendingrate.

Group

Financeleaseliabilitiesaresubjecttoafixedinterestratesrangingfrom2.40%to3.20%(2010:2.40%to3.20%)perannum.



15. BORROWINGS (Cont’d)

15.3 Terms and debt repayment schedule

Year of Carrying Under 2 - 5 Over maturity amount 1 year 1 - 2 years years 5 years RM RM RM RM RM Group 2011 Termloan-secured 2029 4,722,387 449,160 449,160 1,347,480 2,476,587 Financeleaseliabilities 2011-2016 157,213 63,454 29,562 64,197 - 4,879,600 512,614 478,722 1,411,677 2,476,587 2010 Termloan-secured 2029 4,952,776 260,186 270,541 877,958 3,544,091 Financeleaseliabilities 2011-2013 121,129 72,336 41,231 7,562 - 5,073,905 332,522 311,772 885,520 3,544,091 Company 2011 Termloan-secured 2029 4,722,387 449,160 449,160 1,347,480 2,476,587 2010 Termloan-secured 2029 4,952,776 260,186 270,541 877,958 3,544,091

15.4 Finance lease liabilities Financeleaseliabilitiesarepayableasfollows:

2011 2010 Repayments Interest Principal Repayments Interest Principal RM RM RM RM RM RM Group

Lessthan1year 70,232 6,778 63,454 77,772 5,436 72,336 Between1and5years 106,309 12,550 93,759 53,447 4,654 48,793 176,541 19,328 157,213 131,219 10,090 121,129



16. DEFERRED TAX LIABILITIES

Thedeferredtaxassetsandliabilitiesasatreportingdatearemadeupoftemporarydifferencearisingfrom:

At Recognised At Recognised At 1 April in profit 31 March in profit 31 March 2009 or loss 2010 or loss 2011 RM RM RM RM RM

Group Deferred tax liabilities: Carryingamountofqualifying property,plantandequipment inexcessoftheirtaxbase 132,000 10,000 142,000 - 142,000 Deferred tax assets: Provisions (39,000) (8,000) (47,000) - (47,000) 93,000 2,000 95,000 - 95,000

Note 22 Note 22

Nodeferredtaxassetshasbeenrecognisedforthefollowingitems:

Group Company 2011 2010 2011 2010 RM RM RM RM Unutilisedtaxlosses (6,730,000) (6,781,000) (2,395,000) (2,449,000) Unabsorbedcapitalallowances (256,000) (256,000) (256,000) (256,000) (6,986,000) (7,037,000) (2,651,000) (2,705,000)

Thetaxabletemporarydifferences,unabsorbedcapitalallowancesandunutilisedtaxlossesdonotexpireundercurrenttaxlegislation.Deferredtaxassetshavenotbeenrecognisedinrespectoftheseitemsbecauseitisnotprobable that future taxableprofitwillbeavailableagainstwhich theGroupandtheCompanycanutilise thebenefits.

Thecomparativefigureshavebeen restated to reflect the revised taxable temporarydifferences,unabsorbedcapitalallowancesandunutilisedtaxlossesavailabletotheGroupandtheCompany.



17. PAYABLES AND ACCRUALS

Note Group Company 2011 2010 2011 2010 RM RM RM RM

Trade Tradepayables 1,326,824 1,149,113 - - Non-trade Amountsduetosubsidiaries 17.1 - - - 5,378,010 Otherpayables 17.2 1,236,733 2,108,909 144,660 153,575 Accruedexpenses 1,051,166 322,560 14,163 14,163 2,287,899 2,431,469 158,823 5,545,748 17.3 3,614,723 3,580,582 158,823 5,545,748

Thenormaltradecredittermsgrantedbytradepayablesrangefrom30to90days(2010:30to90days).

17.1 Amounts due to subsidiaries

TheamountsduetosubsidiariesoftheCompanyareunsecured,interestfreeandrepayableondemand.17.2 Other payables

IncludedinotherpayablesoftheGroupare:

(i) anamountofRM500,000(2010:RM500,000)duetoaformerdirectorofcertainsubsidiary.Intheeventthatthesubsidiary’sfreeholdland,whichhasbeenpledgedtoabankforbankingfacilitiesgrantedtothisformerdirector(asmentionedinNote5(i)),isforeclosedbythesaidbankfordefaultinpaymentbytheformerdirector,theGroupmaybeabletosetofftheamountduetohimagainstthenetproceedsobtainedfromthesaleoffreeholdlandpursuanttotheforeclosurebythesaidbank.

(ii) an amount of RMNil (2010: RM19,083) due to minority shareholders of certain subsidiaries. Theamountisunsecured,interest-freeandrepayableondemand.

17.3 Analysis of foreign currency exposure for significant payables SignificantpayablesthatarenotinthefunctionalcurrenciesoftheGroupentitiesareasfollows:

Group 2011 2010 Functional Foreign RM RM currency currency RM USD 56,246 62,725 RM Euro 867,277 909,478 RM SGD 8,641 18,231 SGD Euro 137,167 140,965



18. REVENUE Group Company 2011 2010 2011 2010 RM RM RM RM Invoicedvalueofgoodssoldless discountsandreturns 4,520,514 5,295,287 - - Servicecharges 1,692,347 2,429,080 - - Managementfees 1,618,350 1,092,368 300,000 180,000 Gamingincome 186,805 211,776 - - Hotelincome 1,144,849 892,212 - - Rentalincome 359,066 325,666 470,186 470,172 Dividendincome - - 3,000,000 3,000,000 9,521,931 10,246,389 3,770,186 3,650,172

19. (LOSS)/PROFIT BEFORE TAX

(Loss)/Profitbeforetaxisarrivedat:

Note Group Company 2011 2010 2011 2010 RM RM RM RM Aftercharging: Auditors’remuneration AuditorsoftheCompany - currentyear - auditservices 60,154 92,990 17,000 20,000 - otherservices 3,500 3,500 3,500 3,500 - prioryear - auditservices 1,846 (775) - - Otherauditors - currentyear - auditservices 5,712 5,111 - - Allowanceforslowmovinginventories 18,885 29,935 - - Baddebtswrittenoff 11,511 - - - Depreciationofproperty,plant andequipment 4 2,359,671 2,734,577 410,059 407,941 DirectorsoftheCompany - Remuneration 21 735,696 1,106,875 42,000 129,000 Impairmentloss - thirdparties 19,016 126,584 - - - subsidiaries - - 1,089,859 513,969 Impairmentlossongoodwill 7 - 28,220 - - Interestexpense - financeleaseliabilities 5,942 7,695 - - - termloan 218,771 195,163 218,771 195,163 - bankoverdraft 20,000 21,478 20,000 21,478 - others 11,620 3,722 Lossonforeignexchange - realised 13,250 - - - - unrealised - - 1,349,935 2,209,174 Operatingleaserentals 89,921 151,707 - - Property,plantandequipmentwrittenoff 18,394 586 510 -



19. (LOSS)/PROFIT BEFORE TAX (Cont’d)

(Loss)/Profitbeforetaxisarrivedat(Cont’d):

Note Group Company 2011 2010 2011 2010 RM RM RM RM andaftercrediting: Baddebtsrecovered 6,110 1,268 - - Gainondisposalofproperty,plant andequipment 34,548 598 - - Gainonforeignexchange - realised 488 1,092 - - - unrealised 12,475 58,612 - - Interestincome 190,961 52,347 1,896 - Rentalincomefrom: - thirdparties 359,066 325,666 359,066 325,666 - subsidiary - - 111,120 144,506 Reversalofimpairmentloss 11,511 - - -

20. STAFF COSTS

Group Company 2011 2010 2011 2010 RM RM RM RM Staffcosts(includingDirectors’remuneration) 3,056,225 3,497,919 251,042 363,534

StaffcostsincludecontributionstotheEmployeesProvidentFundoftheGroupandoftheCompanyofRM148,875(2010:RM203,461)andRM19,116(2010:RM22,561)respectively.

21. KEY MANAGEMENT PERSONNEL COMPENSATION

Thekeymanagementpersonnelcompensationsareasfollows:

Group Company 2011 2010 2011 2010 RM RM RM RM

DirectorsoftheCompany - Remuneration 735,696 1,106,875 42,000 129,000



22. TAX EXPENSE

Group Company 2011 2010 2011 2010 RM RM RM RM Current tax expense - Currentyear 291,658 291,810 828 810 - Overprovisioninprioryears (6,860) (35,318) - - Totalcurrenttaxrecognisedintheprofitorloss 284,798 256,492 828 810 Deferred tax expense - Currentyear(Note16) - 2,000 - - Totaldeferredtaxrecognisedintheprofitorloss - 2,000 - - Totaltaxexpense 284,798 258,492 828 810 Areconciliationofincometaxexpenseapplicableto(loss)/profitbeforetaxatthestatutoryincometaxrateto

incometaxexpenseattheeffectiveincometaxrateoftheGroupandoftheCompanyisasfollows:-

Group Company 2011 2010 2011 2010 RM RM RM RM (Loss)/Profitbeforetax (150,890) (1,146,748) 122,401 (300,570) TaxcalculatedusingMalaysiantaxrateof25% (37,722) (286,687) 30,600 (75,142) Lossesofforeignsubsidiariesnot availableforset-off 327,710 481,836 - - Non-deductibleexpenses 14,420 49,905 720,228 765,391 Non-taxableincome - - (750,000) (750,000) Deferredtaxassetsnotrecognised - 48,756 - 60,561 Utilisationofunabsorbedcapitalallowances (12,750) - - - 291,658 293,810 828 810 Overprovisioninprioryears (6,860) (35,318) - - Taxexpense 284,798 258,492 828 810

TheunutilisedtaxlossesandunabsorbedcapitalallowanceswhichcanbecarriedforwardtooffsetagainstfuturetaxableprofitamountedtoapproximatelyRM6,730,000(2010:RM6,781,000)andRM256,000(2010:RM256,000)fortheGroupandRM2,395,000(2010:RM2,449,000)andRM256,000(2010:RM256,000)fortheCompany.

However,theaboveamountissubjecttotheapprovaloftheInlandRevenueBoardofMalaysia.



23. BASIC LOSS PER ORDINARY SHARE

The basic loss per share has been calculated basedon the loss attributable to owners of the parent and theweightedaveragenumberofsharesinissueduringthefinancialyear.

Group 2011 2010 RM RM Lossattributabletoownersoftheparent (997,776) (1,526,141) Numberofordinarysharesinissue 44,753,400 44,753,400

Thedilutedearningspersharearenotpresentedastherearenodilutivepotentialordinaryshares.

24. RELATED PARTIES Forthepurposesofthesefinancialstatements,partiesareconsideredtoberelatedtotheGrouportheCompany

if theGroupor theCompanyhas the ability, directly or indirectly, to control thepartyor exercise significantinfluenceovertheparty inmakingfinancialandoperatingdecisions,orviceversa,orwheretheGrouportheCompanyandthepartyaresubjecttocommoncontrolorcommonsignificantinfluence.Relatedpartiesmaybeindividualsorotherentities.

Keymanagementpersonnelaredefinedasthosepersonshavingauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheGroupeitherdirectlyorindirectly.ThekeymanagementpersonnelincludealltheDirectorsoftheGroup,andcertainmembersofseniormanagementoftheGroup.

Relatedpartiesincludethefollowing:

i) SubsidiariesoftheCompany

ii) DirectorsandkeymanagementpersonneloftheCompany

iii) ProfitHavenSdn.Bhd. (“PHSB”), aCompany inwhichaDirector isdeemed tohave substantialfinancialinterest

iv) MachinesSdn.Bhd.(“MSB”),aCompanyinwhichaDirectorisdeemedtohavesubstantialfinancialinterest

v) KeyspanExpressSdn.Bhd.(“KESB”),aCompanyinwhichaDirectorisdeemedtohavesubstantialfinancialinterest

vi) SunriseCentureSdn.Bhd.(“SCSB”),aCompanyinwhichaDirectorisdeemedtohavesubstantialfinancialinterest



24. RELATED PARTIES (Cont’d)

24.1 ThesignificantrelatedpartytransactionsoftheGroupandtheCompany,otherthanthosedisclosedinthefinancialstatementsareasfollows:

i) TransactionsbetweentheCompanyanditssubsidiaries:

Transactions amount for the year ended 31 March 2011 2010 RM RM Dividendincome 3,000,000 3,000,000 Managementfeesreceivable 300,000 180,000 Rentalreceivable 111,120 144,506

ii) TransactionswithcompaniesinwhichaDirectorisdeemedtohavesubstantialfinancialinterest:

Group Company 2011 2010 2011 2010 RM RM RM RM Purchaseofbuilding - 322,686 - 322,686 Rentalreceivable 292,732 317,232 292,732 317,232 Saleofequipment - 1,960 - -

iii) TransactionswithDirectorsandkeymanagementpersonnel

There were no transactions with the Directors and key management personnel other than theremunerationpackagepaidtotheminaccordancewiththetermsandconditionsoftheirappointment.

24.2 Significantnon-traderelatedcompanies’balances-Company

2011 2010 RM RM Amountsduefromsubsidiaries 26,733,436 30,902,746 Less:Allowanceforimpairmentloss (14,241,793) (13,151,934) 12,491,643 17,750,812 Amountsduetosubsidiaries - 5,378,010

Alltheamountsoutstandingareunsecured,interest-freeandrepayableondemand.



25. CONTINGENT LIABILITIES - UNSECURED

Group

Freehold land pledged to bank for credit facilities granted to a former Director of a subsidiary amounted toRM500,000(2010:RM500,000).Thebankoverdraftisnotutilisedduringthefinancialyear.

Company

i) The Company has issued corporate guarantees to financial institutions amounting to RM26,605 (2010:RM116,526)forbankingfacilitiesgrantedtosubsidiariesofwhichRM26,605(2010:RM116,526)wasutilisedatreportingdate.

ii) The Company has issued corporate guarantees to a subsidiary for finance lease facility amounting toRM37,970(2010:RM68,378)asatreportingdate.

iii) TheCompanyhasundertakentoprovidefinancialsupporttocertainsubsidiariestoenablethemtocontinueasagoingconcern.

26. SEGMENTAL INFORMATION

(i) Business segments

For themanagement purposes, theGroup is organised into business units based on their products andservices,whichcomprisesthefollowing:

Manufacturing Manufactureofprecisionsprings Supply Supplyofconsumerproducts Gaming Managementofgamingoperationandprovisionofclubequipment Hotel Hoteloperations Others i) Investmentholding ii) Provisionofmanagementservices iii) Provisionoffinancingservice iv) Tradinginindustrialandhigh-techproducts v) Rentalofproperties


Notes to the Financial Statements (cont’d)26

. SE

GM

ENTA

L IN

FORM

ATI

ON

– G

ROU

P (C

ont’

d)

(i)

Busi

ness

seg

men

ts (C

ont’

d)

M

anuf

actu

ring

Su

pply

G

amin

g

Hot

el

Oth

ers

Elim

inati

ons

Cons

olid

ated

RM

RM

RM

RM

RM

RM

RM

2011

Revenu

efrom

externa

lcustomers

4,52

0,51

41,69

2,34

71,80

5,15

51,14

4,84

935

9,06

6-

9,52

1,93

1

Inter-segm

entreven

ue

-900

,000

-

-3,41

1,12

0(4,311

,120

)-

To

tal r

even

ue

4,52

0,51

42,59

2,34

71,80

5,15

51,14

4,84

93,77

0,18

6(4,311

,120

)9,52

1,93

1

Resu

lt:

Interestin

come

2,078

182

,788

4,200

-

1,89

5-

190,96

1

Dep

reciati

on

(100

,165

)(33,91

2)

(683

,766

)(1,040

,994

)(500

,834

)-

(2,359

,671

)

Fina

ncecosts

(7,957

)(1,788

)-

(7,817

)(238

,771

)-

(256

,333

)

Othernon

-cashincome/(expen

se)(a)

15,460

(17,61

5)

3,74

0(16,24

1)

5,38

4-

(9,272

)

Taxexpe

nse

(110

,017

)(173

,953

)-

-(828

)-

(284

,798

)

Segm

ent p

rofit

/(lo

ss)

407,19

3(2,516

,894

)(809

,399

)(1,008

,373

)(20,08

8)

3,51

1,87

3(435

,688

)

Ass

ets:

-

Add

ition

tonon

-currentasset(b

)47

3,20

33,999

212

,637

13

,435

16

9,42

0-

872,69

4

Una

llocatedassets

8,84

6,61

8

Segm

enta

ssets

2,87

5,67

57,756

,044

3,708

,914

5,16

5,32

411

,447

,383

-

30,953

,340

Li

abili

ties

:-

Una

llocatedliabiliti

es

4,81

0,93

1

Segm

entliabiliti

es

612,56

778

4,91

876

8,02

988

,900

1,54

9,06

8-

3,803

,482



. SE

GM

ENTA

L IN

FORM

ATI

ON

– G

ROU

P (C

ont’

d)

(i)

Busi

ness

seg

men

ts (C

ont’

d)

M

anuf

actu

ring

Su

pply

G

amin

g

Hot

el

Oth

ers

Elim

inati

ons

Cons

olid

ated

RM

RM

RM

RM

RM

RM

RM

2010

Revenu

efrom

externa

lcustomers

3,93

4,42

73,78

9,94

01,30

4,14

489

2,21

232

5,66

6-

10,246

,389

Inter-segm

entreven

ue

-90

0,00

0-

-3,32

4,50

6(4,224

,506

)-

To

tal r

even

ue

3,934

,427

4,68

9,94

01,30

4,14

489

2,21

23,65

0,17

2(4,224

,506

)10

,246

,389

Re

sult

:

Interestin

come

-52,34

7-

--

-52

,347

Dep

reciati

on

(83,85

0)

(52,64

0)

(943

,576

)(1,155

,789

)(498

,722

)-

(2,734

,577

)

Fina

ncecosts

(7,370

)(4,047

)-

-(216

,641

)-

(228

,058

)

Othernon

-cashincome/(expen

se)(a)

(12,55

2)

598

(126

,145

)(578

)12,56

2-

(126

,115

)

Taxexpe

nse

(44,59

2)

(273

,090

)-

-(810

)60

,000

(258

,492

)

Segm

ent p

rofit

/(lo

ss)

73,60

7(2,320

,514

)(2,388

,204

)(1,525

,774

)(1,474

,261

)6,22

9,90

6(1,405

,240

)

Ass

ets:

-

Add

ition

tonon

-currentasset(b

)72

,039

74

,163

30

5,79

813

4,33

439

6,15

7-

982,49

1

Una

llocatedassets

4,37

0,36

4

Segm

enta

ssets

2,13

2,50

411

,954

,953

3,69

3,76

96,651

,815

11

,083

,900

-

35,516

,941

Li

abili

ties

:-

Una

llocatedliabiliti

es

5,19

2,90

5

Segm

entliabiliti

es

227

,365

87

6,08

4849

,463

69

,721

1,55

7,94

9-

3,58

0,58

2



26. SEGMENTAL INFORMATION – GROUP (Cont’d)

(i) Business segments (Cont’d)

Notes:

(a) Othernon-cashincome/(expense)consistofthefollowingitems:-

2011 2010 RM RM Allowanceforimpairmentloss (19,016) (126,584) Allowanceforslowmovinginventories (18,885) (29,935) Baddebtswrittenoff (11,511) - Impairmentlossongoodwill - (28,220) Property,plantandequipmentwrittenoff (18,394) (586) Gainondisposalofproperty,plantandequipment 34,548 598 Reversalonimpairmentloss 11,511 - Unrealisedgainonforex 12,475 58,612 (9,272) (126,115)

(b) Additionstonon-currentassetsconsistof:-

2011 2010 RM RM Property,plantandequipment 812,174 982,491 Investmentinassociate 60,520 - 872,694 982,491

(ii) Geographical segments

Revenuesandnon-currentassetsinformationbasedonthegeographicallocationofcustomersandassetsrespectivelyareasfollows:

Malaysia Cambodia Vietnam Laos Consolidated RM RM RM RM RM

2011 Revenuefromexternalcustomers bylocationofcustomers 6,571,927 378,916 1,426,239 1,144,849 9,521,931 Noncurrentassets 16,814,652 278,607 475,202 4,930,373 22,498,834 Capitalexpenditurebylocation ofassets 646,622 - 152,117 13,435 812,174



26. SEGMENTAL INFORMATION – GROUP (Cont’d)

(ii) Geographical segments (Cont’d)

Malaysia Cambodia Vietnam Laos Consolidated RM RM RM RM RM

2010 Revenuefromexternalcustomers bylocationofcustomers 8,050,033 211,776 1,092,368 892,212 10,246,389 Noncurrentassets 19,513,504 609,486 684,169 6,404,180 27,211,339 Capitalexpenditurebylocation ofassets 542,356 305,801 - 134,334 982,491

(iii) Information about major customers

Revenuefrom1(2010:1)customeramountedtoRM1,664,155(2010:RM3,763,451)arisingfromrevenueby the supply segment and no major customer arising from manufacturing, gaming, hotel and otherssegment.

27. OPERATING LEASE COMMITMENTS

Thefutureminimumleasepaymentsundernon-cancellableoperatingleasesareasfollows:

Group 2011 2010 RM RM Lessthan1year 18,605 89,921 Between1and5years - 18,605 18,605 108,526

TheGroupleasesanumberofmachinesunderoperatingleases.Theleasestypicallyrunforaninitialperiodof3years,withanoptiontocontinueforanotheryear.Noneoftheleasesincludecontingentrentals.

28. FINANCIAL INSTRUMENTS

Financial risk management objectives and policies

TheGroupandtheCompanyareexposedtofinancialrisksarisingfromtheiroperationsandtheuseoffinancialinstruments. Financial riskmanagement policy is established to ensure that adequate resources are availablefor thedevelopmentof theGroup’sand theCompany’sbusinesswhilstmanaging its credit risk, liquidity risk,foreigncurrencyriskandinterestraterisk.TheGroupandtheCompanyoperateswithinclearlydefinedpoliciesandproceduresthatareapprovedbytheBoardofDirectorstoensuretheeffectivenessoftheriskmanagementprocess.



28. FINANCIAL INSTRUMENTS (Cont’d)

ThemainareasoffinancialrisksfacedbytheGroupandtheCompanyandthepolicyinrespectofthemajorareasoftreasuryactivityaresetoutasfollows:-

(a) Credit risk

CreditriskistheriskofafinanciallosstotheGroupandtheCompanyifacustomerorcounterpartytoafinancialinstrumentfailstomeetitscontractualobligations.

TheGroup’sandtheCompany’sexposuretocreditriskarisesprimarilyfromreceivables.ItistheGroup’sandtheCompany’spolicytoenterintofinancialinstrumentwithadiversityofcreditworthycounterparties.TheGroupandtheCompanydonotexpecttoincurmaterialcreditlossesofitsfinancialassetsorotherfinancialinstruments.

TheGroup’sandtheCompany’sobjectiveistoseekcontinualrevenuegrowthwhileminimisinglossesincurredduetoincreasedcreditriskexposure.TheGroupandtheCompanyprovideservicesonlytorecognisedandcreditworthythirdparties.ItistheGroup’sandtheCompany’spolicythatallcustomerswhowishtotradeoncredittermsaresubjecttocreditverificationsprocedures.

FollowingaretheareaswheretheGroupandCompanyareexposedtocreditrisk:

(i) Receivables

Asatendof the reportingperiod, themaximumexposure to credit riskarising from receivables islimitedtothecarryingamountsinthestatementoffinancialposition.

Withacreditpolicyinplacetoensurethecreditriskismonitoredonanongoingbasis,managementhastakenreasonablestepstoensurethatreceivablesthatareneitherpastduenorimpairedarestatedattheirrealisablevalues.TheGroupuseageinganalysistomonitorthecreditqualityofthereceivables.Anyreceivableshavingsignificantbalancespastduemorethancredittermsgrantedaredeemedtohavehighercreditrisk,andaremonitoredindividually.

TheageinganalysisoftradereceivablesoftheGroupisasfollows:-

Individually Gross impaired Net RM RM RM 2011 Notpastdue 6,902,585 - 6,902,585 Pastduefor1-30days 605,688 - 605,688 Pastduefor31-60days 347,935 - 347,935 Pastduefor61-90days 127,358 (26,930) 100,428 Pastduefor91-120days 46,532 (22,500) 24,032 Pastdueformorethan121days 905,090 (899,949) 5,141 8,935,188 (949,379) 7,985,809

Thenetcarryingamountoftradereceivablesisconsideredareasonableapproximateoffairvalues.Themaximumexposure to credit risk is the carrying value of each class of receivablesmentionedabove.Tradereceivablesthatareindividuallydeterminedtobeimpairedatthereportingdaterelatetoreceivablesthatareinsignificantdifficultiesandhavedefaultedinpayments.Thesereceivablesarenotsecuredbyanycollateralorcreditenhancements.




Financial risk management objectives and policies (Cont’d)

(a) Credit risk(Cont’d)

FollowingaretheareaswheretheGroupandCompanyareexposedtocreditrisk(Cont’d):-

(i) Receivables(Cont’d)

Trade receivables that are neither past due nor impaired are creditworthy receivables with goodpaymentrecordswiththeGroup.NoneoftheGroup’stradereceivablesthatareneitherpastduenorimpairedhavebeenrenegotiatedduringthefinancialyear.

Asat31March2011,tradereceivablesofRM1,083,224werepastduebutnotimpaired.Theserelatetoanumberofindependentcustomersforwhomthereisnorecenthistoryofdefault.

Inrespectoftradereceivables,theGroupisnotexposedtoanysignificantcreditriskexposuretoanysinglecounterpartyotherthan85%(2010:91%)oftradereceivablesconsistofamountduefromone(2010:one)customer.Tradereceivablesconsistofalargenumberofcustomersinvariousbackgrounds.Basedonhistoricalinformationaboutcustomerdefaultrates,managementconsidersthecreditqualityoftradereceivablesthatarenotpastdueorimpairedtobegood.

(ii) Intercompanybalances

Themaximumexposuretocredit risk is representedby theircarryingamounts in thestatementoffinancialposition.

The Company provides unsecured advances to subsidiary companies and monitors their resultsregularly.

Asat theendof the reportingperiod, therewasno indication that theadvances to the subsidiarycompaniesarenotrecoverable.

(b) Liquidity risk

LiquidityriskistheriskthattheGroupandtheCompanywillnotbeabletomeetitsfinancialobligationsastheyfalldueasaresultofshortageoffunds.

TheGroup’sandtheCompany’sexposuretoliquidityriskarisesparticularlyfrompayablesandborrowingsanditmaintainsalevelofcashandcashequivalentsandbankcreditfacilitiesdeemedadequatebymanagementtoensureithassufficientliquiditytomeetitsobligationswhentheyfalldue.





(b) Liquidity risk(Cont’d)

ThefollowingareareasoftheGroup’sandtheCompany’sexposuretoliquidityrisk(cont’d):-

Less than More than Group 1 year 1 year 2011 RM RM

Tradepayables 1,326,824 - Otherpayablesandaccruals 2,287,899 - Borrowings 512,614 4,366,986 Total 4,127,337 4,366,986

Company 2011

Tradepayables - - Otherpayablesandaccruals 158,823 - Borrowings 449,160 4,273,227 Total 607,983 4,273,227

(c) Foreign currency risk

Foreigncurrencyriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinforeignexchangerates.

TheGrouphastransitionalcurrencyexposuresarisingfromsalesorpurchasesthataredenominatedinacurrencyotherthantherespectivefunctionalcurrenciesofGroupentitities.ThecurrencygivingrisetothisriskisprimarilyUSDollar(USD),SingaporeDollar(SGD)andEuroDollar(EURO).

TheGroupandCompanycurrentlydonotpracticecashflowhedgeanddoesnotenterintoforwardcurrencycontractstomitigateitsexposuretoforeigncurrencyrisks.

Theforeigncurrencyexposureasatreportingdateisdetailedinrespectivenotestothefinancialstatements.





(c) Foreign currency risk(Cont’d)

ThefollowingtabledemonstratesthesensitivityoftheGroup’sandCompany’sprofitforthefinancialyeartoareasonablypossiblechangeintheUSD,SGD,andEUROexchangeratesagainsttherespectivefunctionalcurrencyoftheCompany,withallothervariablesheldconstant.

Group Company 2011 2011 Loss for Profit for the year Equity the year Equity RM RM RM RM USD/RM - Strengthened0.42% 34 34 - - - Weakened0.42% (34) (34) - - SGD/RM - Strengthened0.25% 21 21 - - - Weakened0.25% (21) (21) - - EURO/RM - Strengthened0.17% 1,725 1,725 - - - Weakened0.17% (1,725) (1,725) - -

(d) Interest rate risk

TheGroup’sandtheCompany’spolicyistoborrowprincipallyonafloatingratebasis. TheGroupusesafixedratetodetermineservicechargesonitstradereceivablesfromfinancingservices.

TheGroup’sandtheCompany’sexposuretomarketriskforchangesininterestratesrelatesprimarilytotheGroup’sandtheCompany’sdebtobligationsandtheGroup’stradereceivablesfromfinancingservices.



. FI

NA

NCI

AL

INST

RUM

ENTS

(Con

t’d)

Fi

nanc

ial r

isk

man

agem

ent o

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da

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riceormature,whicheverisearlier:

A

vera

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eff

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Not

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ate

Less

than

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2 - 3

3

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M

ore

than

pe

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num

To

tal

1 ye

ar

year

s ye

ars

year

s ye

ars

5 ye

ars

%

RM

RM

RM

RM

RM

RM

RM

G

roup

2011

Fina

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l ass

ets

Fi

xed

rate

inst

rum

ents

Sh

orttermdep

ositswith

licen

sedba

nksan

d

fin

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stitutio

ns

11

2.66

8,06

6,84

78,06

6,84

7-

--

--

Fixedde

positswith

licen

sedba

nksan

d

fin

ancialin

stitutio

ns

11

2.75

74

1,86

174

1,86

1-

--

--

Trad

ereceivab

les

810

.55

7,98

5,80

92,80

3,11

487

7,53

976

0,52

676

2,02

1776

,028

2,00

6,58

1

Fina

ncia

l lia

biliti

es

Fi

xed

rate

inst

rum

ents

Fina

nceleaseliabiliti

es

15

2.70

15

7,21

363

,454

29

,562

22

,000

22

,000

20,19

7-

Floa

tingratein

strumen

t

Term

loan

15

3.91

4,72

2,38

744

9,16

044

9,16

044

9,16

044

9,16

0449

,160

2,47

6,58

7



. FI

NA

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(Con

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Fi

nanc

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isk

man

agem

ent o

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Less

than

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2 - 3

3

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4 - 5

M

ore

than

pe

r an

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To

tal

1 ye

ar

year

s ye

ars

year

s ye

ars

5 ye

ars

%

RM

RM

RM

RM

RM

RM

RM

Gro

up

2010

Fi

nanc

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s

Fi

xed

rate

inst

rum

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Shorttermdep

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licen

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d

fin

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ns

11

1.98

2,14

0,49

32,14

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3-

--

--

Fixedde

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licen

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fin

ancialin

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ns

11

2.17

2,11

5,12

32,11

5,12

3-

--

--

Trad

ereceivab

les

810

.61

11,689

,401

3,79

6,87

01,39

2,75

51,06

1,13

392

2,92

794

6,72

63,56

8,99

0

Fi

nanc

ial l

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Fixe

d ra

te in

stru

men

ts

Fina

nceleaseliabiliti

es

15

2.75

12

1,12

972

,336

41

,231

7,56

2-

--

Floa

tingratein

strumen

t

Te

rmlo

an

15

3.91

4,95

2,77

626

0,18

627

0,54

129

2,65

229

2,65

229

2,65

43,54

4,09

1



. FI

NA

NCI

AL

INST

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Fi

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isk

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Less

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M

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than

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To

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1 ye

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year

s ye

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year

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%

RM

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RM

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Com

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Fi

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rate

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Term

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15

3.91

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9,16

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9,16

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6,58

7

20

10

Fina

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Floa

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rate

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Term

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15

3.91

4,95

2,77

626

0,18

627

0,54

129

2,65

229

2,65

229

2,65

43,54

4,09

1




(e) Fair values

Recognised financial instruments

Thecarryingamountsofcashandcashequivalents,receivables,payablesandborrowingsapproximatefairvaluesduetotherelativelyshorttermnatureofthesefinancialinstruments.

TheCompanyprovidesfinancialguaranteestobanksforcreditfacilitiesextendedtocertainsubsidiaries.Thefairvalueofsuchfinancialguaranteesisnotexpectedtobematerialastheprobabilityofthesubsidiariesdefaultingonthecreditlinesisremote.

Inrespectof tradereceivableswiththerepaymentstructuredescribed inNote8, it isnotpracticabletoestimatethefairvalueofthefixedratetradereceivablesduetothelackofinformationondiscountrateandtheinabilitytoestimatethefairvaluewithoutincurringexcessivecosts.However,theDirectorsbelievethatthereisnosignificantdifferencebetweenthefairvalueandthebookvalueofthetradereceivables.

Therewerenounrecognisedfinancialinstrumentsatreportingdate.

29. CAPITAL MANAGEMENT

Theprimaryobjectiveof theGroup’sand theCompany’scapitalmanagement is toensure that itmaintainsastrongcreditratingandfinanciallyprudentcapitalratiosinordertosupportitscurrentbusinessaswellasfutureexpansionsoastomaximiseshareholdervalue.

TheGroupand theCompanymanage this capital structureandmakeadjustments to it, in lightof changes ineconomic conditions including the interest ratemovements.Tomaintainandadjust thecapital structure, theGroupandtheCompanymayadjustdividendpaymenttoshareholders,returncapitaltoshareholdersorissuenewshares.

30. MATERIAL LITIGATIONS

ThemateriallitigationsoftheGroupareasbelow:

i) On28May2003,theCompany’swholly-ownedsubsidiaries,EPAAutomationSdn.Bhd.andEPAAutomationPte.Ltd.(“EPA”),filedasuitagainstCamozzis.p.a,CamozziMalaysiaSdn.Bhd.andtwoformeremployeesof EPAMalaysia, (collectively known as the “Camozzi Defendants”) in relation to the alleged wrongfulterminationof the soleagencyanddistributorshipagreementbetweenEPAwithCamozzi s.p.a. and theallegedwrongfuluseofEPA’sconfidentialinformationbytheCamozziDefendants.

EPAhas claimed for damages arising thereof anddamages resulting fromunlawful interferenceof theirbusiness by theCamozziDefendants. An injunction is in placeprohibiting theCamozziDefendants fromutilisingtheconfidentialinformation.TheCamozziDefendantshavefiledacounterclaimintheseproceedingsagainsttheCompanyandEPAforthevalueofgoodssoldtoEPAofEuro233,250.49togetherwithinterestchargedat8%perannumandotherdamages.Giventhatthepurportednatureofterminationwaswrongful,andthattherewasawrongfuluseofEPA’sconfidentialinformationandastherewasunlawfulinterferencewithEPA’sbusiness,theDirectorsareoftheviewthattherearereasonableprospectsofsuccessbyEPAinitsclaimagainsttheCamozziDefendants.Thetrialofthismatterhasbeenpostponednumeroustimesandthecourthasfixedthenewtrialdatefrom1August2011to4August2011.



30. MATERIAL LITIGATIONS (Cont’d)

ThemateriallitigationsoftheGroupareasbelow(Cont’d):

ii) The Company’s subsidiary, RemarkableGroup Limited (“RGL”) has initiated a legal suit against Viet Star(formerly known as Amara Saigon Hotel Co. Ltd) (“the hotel owner”) requesting for compensation andfullfilmentofamanagementcontractenteredbythesubsidiaryandthehotelowner.ThehotelownerhasillegallyblockedandpreventedtheclubfromoperatingsinceJuly2007andhasyettoreturntheoperationand the assets, which they have seized to the subsidiary. The compensation claimed by the subsidiaryapproximate to USD3,907,300 (RM11,823,490) for the damage due to the loss of destruction of thesubsidiary’sassetsandbusinesslossesfromtheclosureofthecluboperation.

In addition, on 5th and 8th February 2010, Rich Lee Holdings Sdn Bhd (“RLHSB”) and RGL had filedseparatepetitionsagainstVietStarseekingdamagesapproximatetoUSD13,383,000(RM40,496,958)andUSD9,476,000(RM28,674,376)respectivelyfortheunlawfulclosureofRGL’sclub.

VietStarhad lodgedtheircounterclaimsagainstRLHSB, requesting forcompensationofUSD11,420,822(RM34,559,407)whichconsistsofunpaidrent,foreigncontractortax,additionalcorporateincometaxandbusinesslossesuptoNovember2010.

Thecourthasyettofixatrialdate.TheBoardisoftheopinionthattheoutcomeofthecaseisuncertainandunpredictable.



31. DISCLOSURES OF REALISED AND UNREALISED PROFITS/LOSSES

With the purpose of improving transparency, Bursa Malaysia Securities Berhad has on 25March 2010, andsubsequently on 20 December 2010, issued directives which require all listed corporations to disclose thebreakdownofretainedearningsoraccumulatedlossesintorealisedandunrealisedongroupandcompanybasisintheannualauditedfinancialstatements.

The breakdown of accumulated losses as at the reporting datewhich has been prepared by theDirectors inaccordancewiththedirectivesfromBursaMalaysiaSecuritiesBerhadstatedaboveandtheGuidanceonSpecialMatterNo.1-DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosurepursuanttoBursaMalaysiaSecuritiesBerhadListingRequirements,asissuedbytheMalaysianInstituteofAccountantsareasfollows:-

Group Company 2011 2011 RM RM TotalaccumulatedlossesoftheCompanyanditssubsidiarycompanies - Realised (48,471,145) (21,844,501) - Unrealised (1,337,460) (1,349,935) (49,808,605) (23,194,436) Consolidationadjustments 36,013,408 - TotalGroupaccumulatedlossesasperconsolidatedfinancialstatements (13,795,197) (23,194,436)

TheabovedisclosureswereapprovedbytheBoardofDirectorsinaccordancewitharesolutionoftheDirectorsdated26July2011.


Statement by Directors pursuant to Section 169(15) of the Companies Act, 1965

IntheopinionoftheDirectors,thefinancialstatementssetoutonpages32to89aredrawnupinaccordancewithFinancialReportingStandardsandtheCompaniesAct,1965inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyat31March2011andoftheirfinancialperformanceandcashflowsfortheyearthenended.

SignedonbehalfoftheBoardofDirectorsinaccordancewitharesolutionoftheBoardofDirectors,

………………………………………..DATO’ CHENG JOO TEIK

………………………………………..KONG SIN SENG



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

I,Kong Sin Seng,theDirectorprimarilyresponsibleforthefinancialmanagementofWidetech(Malaysia)Berhad,dosolemnlyandsincerelydeclarethatthefinancialstatementssetoutonpages32to89are,tothebestofmyknowledgeandbelief,correctandImakethissolemndeclarationconscientiouslybelievingthesametobetrue,andbyvirtueoftheStatutoryDeclarationsAct,1960.

SubscribedandsolemnlydeclaredbytheabovenamedatKualaLumpurintheFederalTerritorythisdayof26July2011.

………………………………………KONG SIN SENG

Beforeme:


Independent Auditors’ Reportto the Members of Widetech (Malaysia) Berhad

Report on the Financial Statements

WehaveauditedthefinancialstatementsofWidetech(Malaysia)Berhad,whichcomprisethestatementsoffinancialposition as at 31March 2011 of the Group and of the Company, and the statements of comprehensive income,statementsofchangesinequityandstatementsofcashflowsoftheGroupandoftheCompanyfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotesenumeratedinNotes1to30andsetoutonpages32to89.

Directors’ Responsibility for the Financial Statements

TheDirectorsoftheCompanyareresponsibleforthepreparationoffinancialstatementsthatgiveatrueandfairviewinaccordancewithFinancialReportingStandardsandtheCompaniesAct1965inMalaysia,andforsuchinternalcontrolastheDirectorsdetermineisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditors’ Responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements. The procedures selected depend on our judgement, including the assessment of risks of materialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheCompany’spreparationoffinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany’sinternalcontrol.AnauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebytheDirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelieve that theauditevidencewehaveobtained is sufficientandappropriate toprovideabasis forourauditopinion.

Opinion

Inouropinion,thefinancialstatementshavebeenproperlydrawnupinaccordancewithFinancialReportingStandardsandtheCompaniesAct,1965inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasof31March2011andoftheirfinancialperformanceandcashflowsfortheyearthenended.

Report on Other Legal and Regulatory Requirements

InaccordancewiththerequirementsoftheCompaniesAct,1965inMalaysia,wealsoreportthefollowing:

(a) Inouropinion,theaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyanditssubsidiariesofwhichwehaveactedasauditorshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

(b) Wehaveconsideredtheaccountsandtheauditors’reportofsubsidiariesofwhichwehavenotactedasauditors,whichareindicatedinNote5tothefinancialstatements.


(c) WearesatisfiedthattheaccountsofthesubsidiariesthathavebeenconsolidatedwiththeCompany’sfinancialstatementsareinformandcontentappropriateandproperforthepurposesofthepreparationofthefinancialstatementsoftheGroupandwehavereceivedsatisfactoryinformationandexplanationsrequiredbyusforthosepurposes.

(d) TheauditreportsontheaccountsofthesubsidiariesdidnotcontainanyqualificationoranyadversecommentmadeunderSection174(3)oftheAct,otherthanasdisclosedinNote5tothefinancialstatements.

Other Reporting Responsibilities

ThesupplementaryinformationsetoutinNote31onpage90isdisclosedtomeettherequirementofBursaMalaysiaSecurities Berhad and is not part of the financial statements. TheDirectors are responsible for the preparation ofthe supplementary information in accordance with Guidance on Special Matter No. 1, Determination of RealisedandUnrealised Profits or Losses in the Context of Disclosure pursuant to BursaMalaysia Securities Berhad ListingRequirements,asissuedbytheMalaysianInstituteofAccountants(“MIAGuidance”)andthedirectiveofBursaMalaysiaSecuritiesBerhad.Inouropinion,thesupplementaryinformationisprepared,inallmaterialrespects,inaccordancewiththeMIAGuidanceandthedirectiveofBursaMalaysiaSecuritiesBerhad.

Other Matters

ThisreportismadesolelytothemembersoftheCompany,asabody,inaccordancewithSection174oftheCompaniesAct,1965inMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

ThefinancialstatementsoftheGroupandoftheCompanyasat31March2010wereauditedbyotherauditorswhosereportdated27July2010expressedanunqualifiedopiniononthosestatements.

SJ GRANT THORNTON NG CHEE HOONG(NO.AF0737) CHARTEREDACCOUNTANTCHARTEREDACCOUNTANTS (NO:2278/10/12(J))PARTNER


Independent Auditors’ Reportto the Members of Widetech (Malaysia) Berhad (cont’d)


List of Properties

Net Book Description, Value Approx. Age as at 31 of Building & March Land Area / Year of 2011 Location Tenure Gross Floor Area Acquisition (RM’000) A. REGISTERED OWNER: WIDETECH (MALAYSIA) BERHAD K-09-01toK-09-02 Freehold K-09-01:963.2squaremetres OfficeUnits 6,204 BlockK,No.2JalanSolaris K-09-02:787.6squaremetres 4years SolarisMont’Kiara 2008/2009 KualaLumpur WilayahPersekutuan B. REGISTERED OWNER: WIRE MASTER SPRING SDN BHD Plot51(A)Phase1 Leasehold 2.00acres 2storeyfactory 4,216 BukitMinyak -60years 14years IndustrialPark,Mukim13 expiring 2004 DistrictofProvince 2055 WellesleyCentral Penang


Analysis of Shareholdingsas at 5 August 2011

AuthorisedShareCapital : RM150,000,000IssuedandPaid-upShareCapital : RM44,753,400ClassofShares : OrdinarySharesofRM1.00eachVotingRights : 1voteperordinaryshareholderonashowofhands 1voteperordinaryshareonapollNumberofShareholders : 937

DISTRIBUTION OF SHAREHOLDINGS

Size of shareholdings No. of Holders % No. of Shares %

Less than 100 41 4.38 1,903 0.00100 to 1,000 331 35.32 284,188 0.641,001 to 10,000 416 44.40 1,603,623 3.5810,001 to 100,000 108 11.52 3,265,950 7.30100,001 to 2,237,669 37 3.95 21,838,932 48.802,237,670 and above 4 0.43 17,758,804 39.68

Total 937 100.00 44,753,400 100.00

SUBSTANTIAL SHAREHOLDERS

Direct Indirect Name No. of Shares % No. of Shares %1. DistinctRichSdnBhd 8,030,652 17.94 - -2. LimHianYuSdnBhd 5,529,200 12.35 - -3. GainMillenSdnBhd 4,198,952 9.38 - -4. Dato’TanTingWong - - 8,030,6521 17.945. DatukChuSuiKiong 220,500 0.49 8,030,6521 17.946. Dato’ChengJooTeik 200,000 0.45 4,198,9522 9.38

Notes:1 DeemedinterestthroughDistinctRichSdnBhd2 DeemedinterestthroughGainMillenSdnBhd


Analysis of Shareholdingsas at 5 August 2011 (cont’d)

DIRECTORS’ SHAREHOLDINGS

Direct IndirectName No. of Shares % No. of Shares %

LohSuanPhang 2,011,300 4.49 - -Dato’ChengJooTeik 200,000 0.45 5,758,8522 12.87DatukChuSuiKiong 220,500 0.49 8,030,6521 17.94Dato’LimKimHuat - - - -KongSinSeng - - - -Dato’TanTingWong - - 8,030,6521 17.94LeeYokeShue - - - -Dato’ZakariaBinMohammed - - - -DatukNgBeeKen - - - -Dato’LimSinKhong - - 2,007,6643 4.49

Notes:1 DeemedinterestthroughDistinctRichSdnBhd2 DeemedinterestthroughGainMillenSdnBhdandthesharesheldbyhisson,Dato’DouglasChengHengLeein accordancewithSection134(12)(c)oftheCompaniesAct,19653 DeemedinterestthroughActualAceSdnBhd

DIRECTORS’ SHAREHOLDINGS IN RELATED CORPORATIONS Direct Indirect*Name No. of Shares % No. of Shares % held in held in Related Related Corporation Corporation

Dato’ChengJooTeikWireMasterSpringSdnBhd 1 @ - -

DatukChuSuiKiong* WireMasterSpringSdnBhd# - - 1,439,998 96.00AceUnicornLimited^ - - 3 60.00RemarkableGroupLimited^ - - 1 50.00EnseliniInternationalLimited^ - - 65 65.00Lao-MalaysiaInvestmentsGroup^ - - 750,000 75.00

Dato’TanTingWong*WireMasterSpringSdnBhd# - - 1,439,998 96.00AceUnicornLimited^ - - 3 60.00RemarkableGroupLimited^ - - 1 50.00EnseliniInternationalLimited^ - - 65 65.00Lao-MalaysiaInvestmentsGroup^ - - 750,000 75.00

Notes:* DeemedinterestedbyvirtueofSection6AoftheCompaniesAct,1965totheextentWidetech(Malaysia)Berhad

hasinterests# OrdinarySharesofRM1.00each^ SharesofUSD1.00each@ Negligible


LIST OF 30 LARGEST SHAREHOLDERS

Name No. of Shares %

1. LimHianYuSdnBhd 5,529,200 12.352. DistinctRichSdnBhd 5,019,768 11.223. GainMillenSdnBhd 4,198,952 9.384. DistinctRichSdnBhd 3,010,884 6.735. ActualAceSdnBhd 2,007,664 4.496. ChuaSengYong 1,838,900 4.117. HSBCNominees(Asing)SdnBhd 1,729,300 3.86 ExemptAnforCreditSuisse(SGBR-TST-ASING)8. HLGNominee(Tempatan)SdnBhd 1,592,300 3.56 PledgedSecuritiesAccountforLohSuanPhang(CCTS)9. CimsecNominees(Asing)SdnBhd 1,282,800 2.87 SnowshillSecuritiesLimited10. A.A.AnthonyNominees(Tempatan)SdnBhd 1,000,000 2.23 PledgedSecuritiesAccountforDouglasChengHengLee11. LimHeokChye 967,962 2.1612. AliciaEFen 827,032 1.8513. HoKokMeng 738,909 1.6514. ChinSeokYin 723,500 1.6215. CimsecNominees(Tempatan)SdnBhd OnYatSecurities(Malaysia)SdnBhd 710,000 1.5916. LimSuhHua@LimYakHua 611,588 1.3717. RHBCapitalNominees(Tempatan)SdnBhd 556,900 1.24 PledgedSecuritiesAccountforDouglasChengHengLee18. TanMengChuen 552,796 1.2419. LeeSoonSoo 552,200 1.2320. KhooKimSeng 517,236 1.1621. LingHeeLeong 517,236 1.1622. LohSuanPhang 419,000 0.9423. TehTiewLeong 413,514 0.9224. ChiewKokBoo 393,000 0.8825. KennethTanKengHan 352,600 0.7926. NgLaiChiek 320,800 0.7227. AbulHasanBinMohamedRashid 315,000 0.7028. HiewVunKee 309,796 0.6929. GohMoLooi 296,000 0.6630. LimCheeKiat 289,800 0.65

Total 37,594,637 84.00

Analysis of Shareholdingsas at 5 August 2011 (cont’d)

PROXY FORM

No Ordinary Resolutions For Against 1 Re-electionofLeeYokeShueasDirector 2 Re-electionofLohSuanPhangasDirector 3 Re-electionofDato’ZakariaBinMohammedasDirector 4 ElectionofDato’LimSinKhongasDirector 5 Re-appointmentofMessrsSJGrantThorntonasAuditorsofthe CompanyandAuthoritytotheDirectorstofixtheirremuneration 6 AuthoritytoDirectorstoissuesharespursuanttoSection132D oftheCompaniesAct,1965

NO. OF SHARES HELD

CDS ACCOUNT NO.WIDETECH (MALAYSIA) BERHAD (113939-U)

I/We(BLOCKLETTERS)

of

beingamember(s)ofWIDETECH (MALAYSIA) BERHAD(113939-U),herebyappoint

of

or*THECHAIRMANOFTHEMEETINGorfailinghim/her,

of

as my/our proxy, to vote for me/us and on my/our behalf at theTwenty-Seventh Annual GeneralMeeting of the Company to be held at Dewan Perdana, Bukit Kiara Equestrian&CountryResort,JalanBukitKiara,OffJalanDamansara,60000KualaLumpuronMonday,26September2011at10.30a.m.andatanyadjournmentthereof.

*Ifyouwishtoappointotherperson(s)tobeyourproxy/proxies,kindlydeletethewords“TheChairmanoftheMeetingorfailinghim/her”andinsertthename(s)oftheperson(s)desired.

Markeitherboxifyouwishtodirecttheproxyhowtovote.Ifnomarkismadetheproxymayvoteontheresolutionorabstainfromvotingastheproxythinksfit.Ifyouappointtwoproxiesandwishthemtovotedifferentlythisshouldbespecified.

My/ourproxy/proxiesis/aretovoteasindicatedbelow:

Datedthis dayof 2011

Signature/CommonSealofShareholder

NOTES:1. Amemberentitledtoattendandvoteatthemeetingmayappointanotherpersonashisproxytoattendandvoteinhis/her

stead.AproxymaybutneednotbeamemberoftheCompany.Iftheproxyisnotamember,heneednotbeanadvocate,anapprovedcompanyauditororapersonapprovedbytheRegistrarofCompanies.However,hisattendanceatthegeneralmeetingshallautomaticallyrevoketheproxy’sauthority.

2. Amembershallbeentitledtoappointmorethanoneproxy(subjectalwaystoamaximumoftwo(2)proxiesateachmeeting)toattendandvoteatthesamemeeting.Whereamemberappointstwo(2)proxies,theappointmentshallbeinvalidunlessthememberspecifiestheproportionsofhisholdingstoberepresentedbyeachproxy.

3. WhereamemberisanauthorisednomineeasdefinedundertheSecuritiesIndustry(CentralDepositories)Act,1991,itmayappointatleastone(1)proxyinrespectofeachsecuritiesaccountitholdswithordinarysharesoftheCompanystandingtothecreditofthesaidsecuritiesaccount.

4. Ifnonameisinsertedinthespaceprovidedforthenameofyourproxy,theChairmanofthemeetingwillactasyourproxy.5. TheinstrumentappointingaproxymustbedepositedattheRegisteredOfficeoftheCompanyat10thFloor,MenaraHapSeng,

No.1&3JalanP.Ramlee,50250KualaLumpurnotlessthanforty-eight(48)hoursbeforethetimeforholdingthemeetingoranyadjournmentthereof.

6. Iftheappointorisacorporation,theinstrumentappointingaproxymustbeexecutedunderitsCommonSealorunderthehandofitsattorney.

Affix Stamp Here

TheCompanySecretaries

WIDETECH (MALAYSIA) BERHAD (113939-U)10thFloorMenaraHapSengNo.1&3JalanP.Ramlee

50250KualaLumpur

pleasefoldhere

pleasefoldhere

Documents

Annual Report 2011 · 2020. 2. 20. · Annual Report 2011 5 Chairman’s Statement On behalf of the Board of Directors, it is my pleasure to present the Annual Report of Widetech