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WE
IDA
(M
) B
HD
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Resolution 1
Resolution 2
Resolution 3
Resolution 4
Resolution 5
Resolution 6
Resolution 7
Resolution 8
NOTICE OF NINTH ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN that the Ninth Annual General Meeting of the Company will be held at Dewan Muhibbah,
2nd Floor, Merdeka Palace Hotel & Suites, Jalan Tun Abang Haji Openg, 93000 Kuching, Sarawak on Thursday, 25
September 2008 at 11.00 am for the following purposes:-
AGENDA
1. To receive the audited financial statements for the financial year ended 31 March 2008 together
with the Reports of the Directors and Auditors thereon.
2. To approve the increase of directors’ fees amounting to RM56,000.00 for the financial year
ending 31 March 2009.
3. To approve the payment of directors’ fees amounting to RM350,000.00 for the financial year
ending 31 March 2009.
4. To re-elect the following Directors who retire in accordance with Article 81 of the Company’s
Articles of Association and being eligible, offer themselves for re-election:-
(i) Tuan Haji Su’ut bin Suhaili
(ii) YBhg. Dato’ Lee Choon Chin
5. To re-elect the Director, Mr. Yeoh Chin Hoe who retires in accordance with Article 88 of the
Company’s Articles of Association and being eligible, offers himself for re-election.
6. To re-appoint Messrs. KPMG as the Company’s auditors and to authorise the Directors to fix
their remuneration for the ensuing year.
7. As special business
To consider and, if thought fit, pass the following ordinary resolutions:-
Ordinary Resolution
� Authority to issue shares pursuant to Section 132D of the Companies Act, 1965
“THAT pursuant to Section 132D of the Companies Act, 1965 and subject always to the approval
of the relevant authorities, the Directors be hereby empowered to issue shares in the Company
from time to time and upon such terms and conditions and for such purposes as the Directors
may deem fit, provided that the aggregate number of shares issued pursuant to this resolution
does not exceed 10% of the issued share capital of the Company for the time being AND THAT
the Directors be hereby empowered to obtain approval for the listing and quotation of the additional
shares so issued on Bursa Malaysia Securities Berhad AND THAT such authority shall continue
in force until the conclusion of the next annual general meeting of the Company.”
Ordinary Resolution
� Proposed renewal of authority for purchase of own shares by the Company
“THAT, subject always to the Companies Act, 1965 (“the Act”), rules, regulations and orders
made pursuant to the Act, provisions of the Company’s Memorandum and Articles of Association
and the requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) and any other
relevant authority, the Directors of the Company be hereby unconditionally and generally
authorised to purchase and hold on the market of Bursa Securities such number of ordinary
shares of RM0.50 each (“Shares”) in the Company (“Proposed Share Buy-Back”) as may be
determined by the Directors of the Company (“Directors”) from time to time through Bursa
Securities upon such terms and conditions as the Directors may deem fit, necessary and expedient
in the interest of the Company provided that the total aggregate number of Shares purchased
and/or held or to be purchased and/or held pursuant to this resolution shall not exceed 13,333,333
Shares representing approximately ten percent (10%) of the total issued and paid-up share
capital of 133,333,332 Shares of the Company as at 6 August 2008 and an amount not exceeding
the Company’s retained profits reserve at the time of purchase be allocated by the Company for
the Proposed Share Buy-Back AND THAT, such Shares purchased are to be retained as treasury
shares and distributed as dividends and/or resold on the market of Bursa Securities, or
subsequently may be cancelled AND THAT the Directors be hereby authorised and empowered
to do all acts and things and to take all such steps and to enter into and execute all commitments,
transactions, deeds, agreements, arrangements, undertakings, indemnities, transfers,
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NOTICE OF NINTH ANNUAL GENERAL MEETING (continued)
assignments and/or guarantees as they may deem fit, necessary, expedient and/or appropriate
in order to implement, finalise and give full effect to the Proposed Share Buy-Back with full
powers to assent to any conditions, modifications, revaluations, variations and/or amendments,
as may be required or imposed by any relevant authority or authorities AND FURTHER THAT
the authority hereby given shall commence immediately upon passing of this ordinary resolution
and shall continue in force until:-
(a) the conclusion of the next annual general meeting of the Company following the general
meeting at which such resolution was passed at which time it shall lapse unless by ordinary
resolution passed at that meeting, the authority is renewed, either unconditionally or subject
to conditions;
(b) the expiration of the period within which the next annual general meeting after that date is
required by law to be held; or
(c) revoked or varied by ordinary resolution passed by the shareholders in general meeting;
whichever occurs first, in accordance with the provisions of the guidelines issued by Bursa
Securities or any other relevant authorities.”
8. To transact any other business which may properly be transacted at an annual general meeting,
due notice of which shall have been previously given in accordance with the Companies Act,
1965 and the Company’s Articles of Association.
By order of the Board
Voon Jan Moi (MAICSA 7021367)
Wang Tin Ngee (MIA 11670)
Joint Company Secretaries
Dated : 3 September 2008
Kuching, Sarawak
Explanatory notes on special business
Ordinary resolution in relation to authority to issue shares pursuant to Section 132D of the Companies Act, 1965
The proposed resolution No. 7 in relation to authority to issue shares pursuant to Section 132D of the Companies Act,
1965, if passed, will empower the Directors to issue and allot shares up to an aggregate amount not exceeding 10%
of the issued share capital of the Company for the time being, for such purposes as the Directors consider would be
in the interests of the Company. This authority unless revoked or varied at a general meeting will expire at the next
annual general meeting. With this authority, the Company will be able to raise capital from the equity market in a
shorter period of time and the costs to be incurred will also be lower as the need to convene an extraordinary general
meeting will be dispensed with.
Ordinary resolution in relation to proposed renewal of authority for purchase of own shares by the Company
The proposed resolution No. 8, if passed, will renew the authority for the Company to purchase up to ten per cent
(10%) of the issued and paid-up ordinary share capital of the Company through Bursa Malaysia Securities Berhad.
The authority to purchase share will expire at the conclusion of the next Annual General Meeting, unless revoked or
varied by an ordinary resolution passed by shareholders at general meeting.
Please refer to the Statement to Shareholders dated 3 September 2008 for further information.
Notes:
(1) A proxy may but need not be a member of the Company and the provisions of Section 149(1)(b) of the Companies Act, 1965
shall not apply to the Company.
(2) To be valid, the duly completed proxy form must be deposited at the registered office of the Company at Wisma Hock Peng,
Ground Floor to 2nd Floor, 123, Green Heights, Jalan Lapangan Terbang, 93250 Kuching, Sarawak not less than 48 hours
before the time set for holding the meeting or any adjournment thereof.
(3) A member shall be entitled to appoint more than one (1) proxy to attend and vote at the same meeting provided that the
provisions of Section 149(1)(c) of the Companies Act, 1965 are complied with.
(4) Where a member appoints more than one (1) proxy, the appointment shall be invalid unless he specifies the proportions of his
shareholdings to be represented by each proxy.
(5) If the appointor is a corporation, the proxy form must be executed under its common seal or under the hand of an officer or
attorney duly authorised.
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CORPORATE INFORMATION
DIRECTORS
Tuan Haji Su’ut Bin Haji Suhaili
Independent Deputy Chairman
YBhg. Dato’ Lee Choon Chin
Group Managing Director
YBhg. Datu Voon Chen Hian @ Voon Chen Kok
Independent Director
YBhg. Datuk Dr. Stalin Hardin
Independent Director
Yeoh Chin Hoe
Independent Director
Jee Hon Chong
Executive Director
Chew Chin Choong
Executive Director
COMPANY SECRETARIES
Voon Jan Moi
(MAICSA 7021367)
Wang Tin Ngee
(MIA 11670)
AUDITORS
KPMG
Level 6, Westmoore House,
Twin Tower Centre, Rock Road,
93200 Kuching, Sarawak, Malaysia.
Tel: 082-422699
Fax: 082-422399
BANKERS
Malayan Banking Bhd
RHB Bank Bhd
United Overseas Bank (Malaysia) Bhd
Hong Leong Bank Bhd
HSBC Bank Malaysia Bhd
OCBC Bank (Malaysia) Bhd
Export-Import Bank of Malaysia Berhad
ADVOCATES & SOLICITORS
Alvin Chong & Partners
Sio & Ting Advocates
SHARE REGISTRAR
Symphony Share Registrars Sdn Bhd
Level 26, Menara Multi-Purpose,
Capital Square, No. 8,
Jalan Munshi Abdullah,
50100 Kuala Lumpur, Malaysia
Tel: 03-2721 2222
Fax: 03-2721 2530 / 2721 2531
E-mail: [email protected]
REGISTERED OFFICE
Wisma Hock Peng, Ground Floor to 2nd Floor,
123, Green Heights, Jalan Lapangan Terbang,
93250 Kuching, Sarawak, Malaysia.
Tel: 082-456456
Fax: 082-459000
E-mail: [email protected]
COUNTRY OF INCORPORATION AND DOMICILE
Malaysia
STOCK EXCHANGE LISTING
Main Board of Bursa Malaysia Securities Berhad
Stock Name: WEIDA
Stock Code: 7111
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BOARD OF DIRECTORS
From left to right (seated):
YBhg. Dato’ Lee Choon Chin Group Managing Director
Tuan Haji Su’ut Bin Haji Suhaili Independent Deputy Chairman
YBhg. Datuk Dr. Stalin Hardin Independent Director
From left to right (standing):
Chew Chin Choong Executive Director
YBhg. Datu Voon Chen Hian @ Voon Chen Kok Independent Director
Jee Hon Chong Executive Director
Yeoh Chin Hoe Independent Director
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PROFILE OF DIRECTORS
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Tuan Haji Su’ut Bin Haji SuhailiIndependent Deputy Chairman
Tuan Haji Su’ut Bin Haji Suhaili (Malaysian aged 61), the Deputy Chairman of the Board,
was appointed as an Independent Director of the Company on 25 October 2000,
before Weida Group is listed on Bursa Malaysia Securities Berhad. He is actively
serving on all Board Committees, namely as Chairman of the Remuneration and
Compensation Committee and as members of the Audit Committee and Nominating
Committee.
Tuan Haji is an MBA graduate from Henley Brunel University in the United Kingdom.
His 30 years of dedicated service with the Government took him through to various
positions such as Permanent Secretary to Ministries as well as exposure to a wide
spectrum of industries before he retired as General Manager of Bintulu Development
Authority in 2002.
Jee Hon ChongExecutive Director
Jee Hon Chong (Malaysian aged 49) was appointed to the Board as an Executive Director
on 25 October 2000. He graduated from Tunku Abdul Rahman College and
subsequently obtained his degree in Mechanical Engineering from the Engineering
Council, United Kingdom.
Mr. Jee is one of the pioneers of the Group, being the first factory engineer when
Weida commenced manufacturing operations in Kuching in 1988. Subsequently, he
successfully commissioned another two factories in Kota Kinabalu and Nilai, which
marked the entry of Weida into Sabah and Peninsular Malaysia, and now in the process
of implementing Weida’s presence for overseas manufacturing in the Philippines.
Presently, he heads the Group’s manufacturing operations and telecommunication
infrastructures division.
Chew Chin ChoongExecutive Director
Chew Chin Choong (Malaysian aged 39) was appointed to the Board as an Executive
Director on 27 November 2001. He is an economics graduate holding a B. Sc (Hons)
degree from the London School of Economics and Political Science and a Chartered
Accountant with the Institute of Chartered Accountants in England and Wales.
Mr. Chew has a total of more than 15 years experience in audit, consulting, finance
and accounting functions in public listed companies and international accounting firms.
These include RHB, Arthur Anderson and PricewaterhouseCoopers. Mr. Chew is
now the head of the finance and accounting functions of the Group.
YBhg. Dato’ Lee Choon ChinGroup Managing Director
YBhg. Dato’ Lee Choon Chin (Malaysian aged 54), the Group Managing Director, was
appointed to the Board on 25 October 2000.
YBhg. Dato’ graduated with a Bachelor of Science (Hons) from University of Malaya
in 1978. He first started his career as the Sarawak Manager of 3M (Malaysia) Sdn.
Bhd., an American multinational company. Upon leaving 3M in 1983, he incorporated
Weida which was to become the Weida Group today. As a founding shareholder,
YBhg. Dato’ actively continues to lead the Group in the capacity of Group Managing
Director, as well as being Director in subsidiary companies.
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PROFILE OF DIRECTORS (continued)
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Notes:
(a) The Directors have no family relationship with each other or the major shareholders except YBhg. Dato’ Lee Choon Chin,
whose spouse is one of the major shareholders of the Company.
(b) None of the Directors have been convicted of any offences other than traffic offences for the last 10 years.
(c) None of the Directors have any conflict of interest with the Company and other directorship of public companies except for
Mr. Yeoh Chin Hoe.
Yeoh Chin HoeIndependent Director
Yeoh Chin Hoe (Malaysian aged 57) was appointed to the Board as an Independent
Director of the Company on 1 January 2008. He is a member of all Board Committees,
namely Remuneration and Compensation Committee, Audit Committee and
Nominating Committee.
Mr. Yeoh is a Fellow of both Association of Chartered Certified Accountants (UK),
Institute of Chartered Secretaries and Administrators (UK), a member of the Malaysian
Institute of Certified Public Accountants and the Malaysian Institute of Accountants.
He also obtained a Master degree in Business Administration (General Management)
from Universiti Putra Malaysia in 1997.
Mr. Yeoh joined Harrisons Trading (Peninsular) Sdn Bhd (HTP) in 1980, and was
appointed as Finance Director in 1990 and subsequently Managing Director in 1997
until he retired in 2006. He then set up a business management consulting firm called
BPI Corptall Consulting Sdn Bhd in 2006, as a consultant specializing in business
process improvements and general business management services.
Mr. Yeoh is also an Independent Director and the Chairman of the Audit Committee of
Voir Holdings Bhd.
YBhg. Datu Voon Chen Hian @ Voon Chen KokIndependent Director
YBhg. Datu Voon Chen Hian @ Voon Chen Kok (Malaysian aged 65) was appointed to
the Board as an Independent Director of the Company on 25 October 2000. He
serves as the Chairman of the Nominating Committee and also as a member of the
Remuneration and Compensation Committee.
YBhg. Datu holds a Bachelor of Engineering (Civil) from University of Tasmania,
Australia. He started his career with the Public Works Department of Sarawak in
1969, serving in various positions culminating as the Director of Public Works for five
years before he assumed the post of Chief Executive Officer to Sarawak Incorporated
Sdn. Bhd. until 2005.
YBhg. Datuk Dr. Stalin HardinIndependent Director
YBhg. Datuk Dr. Stalin Hardin (Malaysian aged 66) was appointed to the Board as an
Independent Director of the Company on 16 December 2000. He is the Chairman of
the Audit Committee as well as a member of the Nominating Committee and the
Remuneration and Compensation Committee. He is also the Senior Independent
Director to whom concerns regarding the Company may be conveyed.
YBhg. Datuk obtained his Doctor of Medicine degree from the University Of Toronto,
Canada in 1966 and a Master of Public Health post-graduate degree from Tulane
University, United States of America in 1970. He served with the Health Department,
Sarawak in various capacities for 29 years and retired as its Director in 1996.
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BUSINESS ACTIVITIES
WATER
INFRASTRUCTURE
WASTE WATER
INFRASTRUCTURE
RURAL
INFRASTRUCTURE
TELECOMMUNICATION
INFRASTRUCTURE
OIL PALM
PLANTATION
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Water Treatment Systems
WEIDA provides a range of optimal water treatment and
supply solutions to both urban and rural sectors. Besides
conventional technologies, WEIDA is a specialist in state-
of-the-art membrane filtration water treatment systems.
These modern, high-tech treatment systems and plants
produce high quality water with superior levels of reliability
and consistency.
WATER INFRASTRUCTURE
Water Storage Systems
WEIDA provides clients with the most appropriate liquid
storage system with a complete range of polyethylene
tanks and LIPP steel tanks. WEIDA has the engineering
expertise and experience to design, manufacture, install
and construct water storage systems of any capacity.
Manufactured from engineering grade polyethylene,
featuring advanced leakproof one-piece seamless
construction, WEIDA’s Polystor water and specialized
tanks are available in a wide range of sizes and capacities.
WEIDA also offers storage systems comprising of
customized large-capacity metal tanks based on the LIPP
system.
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Pipeline Maintenance and Services
Network Mapping - Done using a combination of
electromagnetic detection and Ground Penetrating Radar
(GPR) to detect underground pipelines and cables.
Accurate utility data is the key to efficient network
management, protection, rehabilitation and modernization.
Pipe Leakage Detection - A practical leakage control
program is employed; from analyzing the water distribution
network, through data logging and leak detection and
monitoring, to surveying pressure in the system.
WATER INFRASTRUCTURE
Pipelines- from Designs, Manufacturing to
Installation and Laying
Besides manufacturing high density polyethylene (HDPE)
pipes for potable water distribution, WEIDA provides
technical assistance in pipeline designs, pipe laying,
installation and welding services as well as a wide range
of accessories and pipe jointing machines.
Being lightweight and highly flexible, as well as chemical,
ultraviolet and impact resistant, Weidaline HDPE water
pipes have distinct advantages over conventional metal
and concrete pipes. Ideal for a myriad of applications from
potable water distribution to gas pipelines as well as
irrigation, agriculture and aquaculture.
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Waste Water Infrastructure
With over 20 years of track record in the waste water
sector, WEIDA offers a full spectrum of experience and
expertise for optimal process design, treatment, structural
integrity, durability and reliability. WEIDA’s Polypass
systems are proprietary prefabricated modular sewage
treatment plants employing the extended aeration
activated sludge treatment process.
WEIDA designs and builds large capacity, reinforced
concrete municiple sewage treatment plants, providing
extensive service and support in their design, supply,
installation in a turnkey implementation.
WASTE WATER INFRASTRUCTURE
Management and Operation of Treatment
Plants
From “Design and Build”, WEIDA expertise in wastewater
management covers the whole range of services to
include management, operation and maintenance of
treatment plants both locally and overseas.
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Pipeline Rehabilitation
Rehabilitation of underground sewer pipes using CIPP
(Cured In Place Pipe) technology involves relining an
existing pipe with a resin impregnated liner that is heat-
cured inside the host pipe, thus creating a structurally
strong and smooth pipe within.
Other rehabilitation technologies we offer include patches,
spiral wound liners and mechanical seals.
High Pressure Jetting - Pipe cleaning and flow
management.
Pipeline Radar Survey - Inspection of underground pipes
and assessment of condition of surrounding
soil, bedding and fill material.
CCTV Inspection and Survey - Detailed assessments
and reports on the structural and service conditions of
underground pipelines.
WASTE WATER INFRASTRUCTURE
Manufacturing and Installation of Waste
Water Pipelines
Floline 3-W Pipes are large diameter pipes with superior
ring and bending stiffness for use in underground or
aboveground gravity and low pressure applications in
irrigation and civil works including culverts, drainage and
waste water conveyance.
WEIDA Double Wall Corrugated HDPE Pipes are the
preferred and superior alternative to conventional
concrete and clay pipes. We provide technical assistance
in pipe laying and installation works.
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Solar Energy
WEIDA pioneered in the solar industry in Malaysia with
over 20 years of experience. Our expertise includes
survey, design, installation, commissioning, maintenance
and management of solar projects. We have completed
many systems on a “ Design and Build” basis for
application in rural water supply, rural clinic, rural village
lighting, rural agriculture, rural eco tourism resort and
navigation lighthouse.
RURAL INFRASTRUCTURE
Rural Water Treatment System
WEIDA is very focused on providing a wide range of
innovative and proprietary solution in rural water supply.
Depending on availability of water source, WEIDA offers
rainwater harvesting system, groundwater supply system,
conventional water supply system to state-of-the-art
membrane filtration treatment system, (especially
designed for rural application). Our services include
survey, design, construction, commissioning,
maintenance and management of water supply systems.
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Telecommunication Coverage
WEIDA offers a full spectrum of telecommunication
networking services from initial construction and
installation to long term maintenance of these network
facilities.
Network Construction Services:
� Construction of towers
� Fully equipped control room
� Telecommunication equipment installation services
� Power supply or generator facilities
Network installation and maintenance services:
� Installation of antenna systems
� Provision of mutual or standby power
� Mechanical and electrical maintenance
TELECOMMUNICATION INFRASTRUCTURE
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Oil Palm Plantation
WEIDA has approximately 16,500 acres of land to be de-
veloped into oil palm plantation at present, and is targeted
to increase to about 22,000 acres within the year. This is
in line with WEIDA's on going expansion programme to
enhance its earnings profile in the long term.
The land is to be developed in 3 phases, starting year
2007. As oil palm shall become one of the most important
commodities in Malaysia, WEIDA looks forward to achieve
greater prospect in agriculture in the near future.
OIL PALM PLANTATION
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STATEMENT FROM GROUP MANAGING DIRECTOR
On behalf of the Board of Directors of Weida (M) Bhd., I am pleased to present the Annual Report and the Financial
Statements of the Group and the Company for the financial year ended 31 March 2008.
FINANCIAL REVIEW
The Group had a fairly good year in FY2008. Turnover once again reached a new high at RM198.91 million for the
year ended 31 March 2008 compared to RM187.35 million for the previous year. However, profit before tax declined
marginally to RM20.01 million (FY2007: RM20.64 million), while profit after tax attributable to the shareholders of the
Company stood at RM10.66 million (FY2007: RM14.69 million). This translated into net earnings per share of 8.3 sen
(FY2007: 11.0 sen).
The profitability of the Group has resulted in shareholders’ funds increasing to RM121.62 million at as 31 March 2008
from RM117.66 million as at 31 March 2007, up 3.4%.
DIVIDENDS
Weida is committed to deliver shareholder value through a balanced approach in the distribution of dividends, taking
into account opportunities to reinvest profits to enhance earnings growth and the need to pay an attractive dividend
to shareholders.
In view of the positive performance of the Group, the Board has declared an interim dividend of 3.5 sen per share,
less tax for the financial year ending 31 March 2009 (instead of a first and final dividend for the year ended 31 March
2008, for tax efficiency reasons). This represents a 32% distribution of the Group’s net earnings per share of 8.3 sen
for the financial year ended 31 March 2008, and translates into a gross dividend yield of 6.1% (based on 31 March
2008 closing share price of RM0.57). The Board believes that this is an appropriate distribution ratio given that the
amount needed to fund the continuing expansion of the Group is more than the cash stream generated from operations
currently.
OPERATING ENVIRONMENT
Our customers are mainly from the construction, property development, plantations and Government sectors.
The above operating results were achieved amidst rising costs in the financial year ended 31 March 2008.
According to statistics from the Ministry of Finance, the growth of the Malaysian economy accelerated to 6.3% in the
calendar year 2007 (2006: 5.9%) while the construction sector recovered to grow at 4.6% (2006: -0.5%) in year 2007
after declining for three years in a row. The plantations sector continues to do well on the back of healthy crude palm
oil prices.
In the first calendar quarter ended 31 March 2008, the growth rate of the Malaysian economy improved to 7.1%. In
the same period, growth in the construction has improved to 6.3%.
The Government’s development spending under the Ninth Malaysia Plan continued to flow through.
In terms of raw materials, the price of polyethylene, being a petroleum derivative, had risen steadily in the course of
the financial year ended 31 March 2008 in line with rising oil prices.
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OPERATIONS REVIEW
BUSINESS EXPANSION
In the past two years, the Group had been successful in diversifying into the construction of telecommunication
infrastructures and bulk storage systems, leveraging on its design-and-build and works capabilities. From being a
water and sewerage specialist, the Group had successfully expanded to become a utilities infrastructure specialist
with four business activities, namely:-
(i) water infrastructure;
(ii) waste water infrastructure;
(iii) rural infrastructure; and
(iv) telecommunication infrastructure.
The continued growth in turnover for the year under review was partly the result of action taken in the previous year
to expand through diversification.
During the year ended 31 March 2008, the Group has acquired an additional 809 hectares of land to be developed
into oil palm plantation. With this acquisition, the Group now owns 6,500 hectares of land in central Sarawak that is
currently being planted, which will contribute positively to earnings when fully developed within 4 years. We target to
increase the land size to 8,500 hectares by the end of the financial year ending 31 March 2009.
Having diversified rapidly in recent years, we will now focus on building both our new and existing businesses.
Further opportunities to leverage on our resources, strengths and expertise will be considered on a selective basis.
INDUSTRY TRENDS AND DEVELOPMENT
Water and Waste Water Infrastructures
Weida Group is a truly integrated specialist in the water and sewerage sectors as a:-
(a) manufacturer of polyethylene engineering products;
(b) design-and-build turnkey specialist of water and sewerage infrastructure;
(c) service provider in trenchless mapping, investigation, repair and rehabilitation of water and sewer pipes and
other buried utility assets; and
(d) concessionaire in the management, operations and maintenance of septic sludge treatment plants.
Manufacturing
As a polyethylene engineering products manufacturer, Weida is the largest player in terms of size and product range.
In addition, we remain as the only manufacturer with full presence nationwide with five manufacturing plants strategically
located in Nilai, Kuching, Kota Kinabalu, Miri and Tawau. The barriers of entry into this industry are high: substantial
capital investment, intensive research and development programmes and specialist technological expertise developed
in-house over the years. This industry is generally capital intensive for big scale manufacturers. The industry players
have generally remained the same during the year under review.
STATEMENT FROM GROUP MANAGING DIRECTOR (continued)
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Margins were stable during the year under review. Over the longer term, prospects of the polyethylene products
industry remain bright as polyethylene water storage tanks and sewage tanks are superior to their metal and concrete
counterparts due to their qualities of being corrosion resistant, durable, leakage-proof, lightweight, hygenic and weather
resistant. Currently, the trend is that polyethylene water and sewage tanks will gradually replace metal and concrete
ones in the future.
Design and Build Projects
Beyond manufacturing, Weida also undertakes significant design-and-build projects that involve turnkey engineering
works and/or specially designed products manufactured in-house. New water and sewerage infrastructure and
electricity power supply in both urban and rural areas will continue to be needed as the country continues to develop.
This is particularly so in Sabah and Sarawak, which is an area of focus in the Government’s development plans and
where Weida has a strong presence.
Weida manufactured products specially engineered for design-and-build projects will continue to command higher
margins than standard products due to our unique and proprietary technologies incorporated into such products.
Mapping, Investigation and Rehabilitation of Buried Utility Assets
Through its subsidiary, UTIC Services Sdn. Bhd., Weida is a market leader in trenchless (i.e. no-dig) pipeline mapping,
investigation and rehabilitation services in Malaysia. The demand for such services is continuing to increase in
Malaysia as a significant portion of water and sewerage networks in Malaysia is more than 30 years old. Given that
the country has more than 92,200 km of water pipeline (in year 2003) and 14,800 km of sewerage network (in year
2005), the potential for no-dig pipeline rehabilitation solutions are enormous, especially as water and sewerage
expenditure rises and a maintenance culture takes hold in Malaysia.
Management, Operations and Maintenance of Septic Sludge Treatment Plants
Septic tanks are widely used in many areas in Malaysia which are not connected by central sewerage services. As
such, there is a continuing need for septic sludge treatment plants to treat septic sludge emptied from septic tanks
through periodic desludging. Weida currently is responsible for the management, operations and maintenance of the
only septic sludge treatment plant in Sabah and Sarawak. Therefore, there will be many more similar requirements
for such sludge treatment plants to be built in Malaysia, where Weida will have the opportunity to market its expertise.
Rural Infrastructure
Our products serve the rural utilities infrastructure in the form of rural water supply through water pipes, storage tanks
and treatment plants; rural sanitation through septic tanks and rural power supply through solar photovoltaic systems
as alternative, renewable energy.
Telecommunication Infrastructure
The trend is for the telecommunication companies to outsource more of the construction and ownership of
telecommunication towers. Since this division was set up 3 years ago, we have over 200 towers constructed or under
construction in the State of Sabah under a joint venture with Common Tower Technologies Sdn. Bhd. (“CTT”), the
state-backed-company controlled by the State Government of Sabah.
We are pleased to report that our joint venture with CTT in a public-private-partnership continues to be successful.
The towers constructed by us together with CTT in Sabah under the Time 2 Programme have been recognized by
Malaysian Communications and Multimedia Commission as the best in quality among all the states in Malaysia. In
terms of speed of implementation of the Time 2 Programme, the State of Sabah is also among the fastest.
STATEMENT FROM GROUP MANAGING DIRECTOR (continued)
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PROSPECTS
Water and Waste Water Infrastructures
Going forward, prospects for the Group’s water and sewerage businesses remain bright. Water and sewerage products
and services permeate almost all infrastructure development, demand is evergreen.
However, in the short term, we expect some turbulence in the market due to steep increases in the prices of fuel,
metals, concrete and other building materials. We expect that the Malaysian economy will need some time to digest
these increases, re-price and restructure itself. At the same time, the people’s discretionary spending power is
reduced due to steep increases in prices of non-discretionary items such as food and fuel. This would affect demand
for our products and services to some extent.
Malaysia, a very open economy, is also susceptible to some extent to external factors. The global economy is losing
its growth momentum. There is also the possibility of the US subprime mortgage market unfolding into a full blown
global credit crunch, and global inflation arising from protracted increases in energy, commodity and food prices
further dampening the prospects of the world economy.
Despite the above scenario, the Government has, in the Mid-term Review of the Ninth Malaysia Plan (2006 – 2010)
on 26 June 2008, projected Malaysia’s real GDP growth to remain at a robust 6% per annum during the remaining
Plan period.
On the positive side, the Government has in the mid-term review made it a priority to provide affordable housing and
water to the poor, in the urban areas and in Sabah and Sarawak. It is also the Government’s priority to expand rural
water coverage, especially in Sabah where coverage is only 65% (compared to 93% for Peninsular Malaysia and
92% for Sarawak). Coverage of water supply in remote areas will be expanded with the implementation of more
gravity flows, rain water harvesting systems and tube wells through the rural water supply programme. Rural water
coverage is expected to increase to 70% in Sabah and 95% in Sarawak by year 2010. Water supply services will
focus on expanding and upgrading the supply system and rehabilitation programmes to reduce non-revenue water.
For the States of Sarawak and Sabah, there are Development Allocations together with Private Finance Initiatives
amounting to RM15.1 billion and RM16.9 respectively.
Water and sewerage services are an integral part of any development initiative. The Group also expects to benefit
from spin-off demand arising from the five corridors of development, namely the Southern Corridor (South Johor or
Iskandar Development Region), the Northern Corridor (Perlis, Penang, Kedah and northern Perak), the Eastern
Corridor (Kelantan, Terengganu and Pahang), Sarawak and Sabah.
In Sarawak, the State Government has announced its intention to invest up to RM30 billion until year 2015 on the
energy-intensive regional development corridor in central Sarawak. In order to realize this vision, the State’s Dewan
Undangan Negeri has passed a law to create the Regional Corridor Development Authority (Recoda). This will
further boost demand for Weida’s products and services.
On the foreign front, the Group is focusing on water and sewerage projects in the Middle East. Over the next decade,
analysts predict that some USD120 billion will be invested in the Middle East and North Africa to alleviate water
shortages in those regions. Currently the Group is implementing its first water and sewerage project in Damascus,
Syria Arab Republic. This project will contribute positively to the Group’s earnings in the financial year ending 31
March 2009.
STATEMENT FROM GROUP MANAGING DIRECTOR (continued)
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The Group is also expanding into the Philippines to tap the vast opportunities in the water and sewage sector of this
populous country of 88 million people. Our factory in Manila is now being set up and is expected to commence
production by September 2008.
Rural Infrastructures
Through Federal Government allocations via the Ministry of Rural & Regional Development, Ministry of Health and
Ministry of Education, this sector of business becomes very promising and Weida is ready to tap into this.
The 9th Malaysia Plan (9th MP) emphasises on utilities and rural development spending augurs well for Weida Group
which has particular strength in rural utilities infrastructures.
A total of RM11.3 billion has been allocated to be spent on water and sewerage in the 5 years period from year 2006
to year 2010 under the 9th MP. In addition, there is also an allocation of about RM14 billion for Rural Infrastructure by
the Ministry of Rural and Regional Development, besides allocations under Ministry of Education. For Flood Mitigation,
there is an allocation of RM4.0 billion under the 9th MP.
Telecommunications Infrastructure
We will complete more telecommunication towers in the financial year ending 31 March 2009 as the telecommunication
companies continue to expand their network coverage rapidly beyond the urban centers, in line with the Malaysian
Communications and Multimedia Commission’s objective of full mobile coverage in the country. More towers will
need to be built in new areas opened up for development, and along new roads and highways being constructed in
the interiors of Sabah in line with the government’s priority to develop Sabah. In addition, more towers will be needed
to facilitate the rollout of 3G services following the award of 3G licenses by the Government a year ago. In addition,
we are also looking to leverage on our expertise to build towers for other applications such as security and surveillance.
Overall Prospects
The Board believes that the Group’s prospects are bright and sustainable. Expansionary moves overseas will contribute
to significant growth, while our diversification into the oil palm plantation industry has provided another new platform
for growth.
The Board is confident that actions taken to expand and diversify the Group’s business activities will continue to
enhance its earnings in the future.
ACKNOWLEDGEMENT
On behalf of the Board of Directors, I would like to place on record our appreciation to our customers and shareholders
for their support, without which our Group would not have been strong and successful.
I would also like to thank our associates, financiers, advisors, suppliers and sub-contractors for their continuing
understanding, confidence and support to the Group.
Last but not least, the Board and I wish to thank the management and all employees of the Group for their unwavering
commitment, contribution and hard work.
YBhg. Dato’ Lee Choon Chin
Group Managing Director
29 July 2008
STATEMENT FROM GROUP MANAGING DIRECTOR (continued)
21
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report contains forward-looking statements that are based on management’s estimates,
assumptions and projections at the time of publication. These statements reflect our current views and
expectations with respect to future events and are subject to risks and uncertainties and hence are not
guarantees of future performance. Some factors include, but are not limited to, changes in general economic
and business conditions, exchange rates and competitive activities that could cause actual results to differ
materially from those expressed or forecasted in the forward-looking statements.
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STATEMENT ON CORPORATE GOVERNANCE
22
THE CODE
The Board of Directors of Weida (M) Bhd. (“the Board”) is steadfast and committed in ensuring that the highest
standards of corporate governance are observed throughout the Weida (M) Bhd. (“Weida”) group of companies (“the
Group”) through its support and application of the Principles and Best Practices of good governance set out in Part 1
and Part 2 of the Malaysian Code on Corporate Governance (“the Code”). The Board believes upholding good corporate
governance is fundamental in discharging its fiduciary responsibilities to protect and enhance shareholders’ value and
the financial performance of the Group.
The Board is pleased to disclose the manner in which it has applied the principles of good governance and the extent
to which it has complied with the best practices set out in the Code. These disclosures are contained in this statement,
the Statement on Internal Control and the Report of the Audit Committee.
DIRECTORS
Board
An effective Board leads and controls the Group. In discharging the Board’s stewardship responsibilities, the Board
explicitly assumes the following six (6) specific responsibilities:
(a) reviewing and adopting a strategic plan for the Group;
(b) overseeing the conduct of the Group’s business to evaluate whether the business is properly managed;
(c) identifying principal risks and ensure the implementation of appropriate systems to manage the risks;
(d) succession planning, including appointing, training, fixing the compensation of and where appropriate, replacing
Senior Management;
(e) developing and implementing an investors relations programme or shareholders communication policy for the
Group; and
(f) reviewing the adequacy and integrity of the Group’s internal control system, management information system and
systems for compliance with applicable laws, regulations, rules, directives and guidelines.
In addition, the Board reserves for itself the following areas of strategic importance to the Group to ensure that the
direction and control of the Group is firmly in its hands:
(a) approval of strategic corporate plans and annual budgets;
(b) announcement of quarterly results;
(c) acquisitions and disposals of business segments and properties of significant value;
(d) major investments and financial decisions;
(e) appointments to the Board; and
(f) changes to the management and control structure within the Group.
Board Balance
The Board currently has seven (7) members, comprising three (3) Executive Directors and four (4) Independent
Directors. The Chairman position is presently vacant. The Board is currently led by the Deputy Chairman who is an
Independent Director. Together, the Directors have a wide range of entrepreneurial, management, manufacturing,
technical, financial and civil administration expertise and experience. This mix of expertise and experience is vital to
the success of the Group given its nature of business and customer base. The profile of each Director is presented on
pages 7 to 8 of this Annual Report.
The roles of the Deputy Chairman and the Group Managing Director are clearly separated to ensure a balance of
power and authority. The Deputy Chairman heads the Board and leads the planning discussion at the Board level,
while the Group Managing Director is responsible for the implementation of policies, Board decisions and executive
decision making. The Independent Directors play a significant role in corporate accountability, providing unbiased and
independent views, advice and judgement to take account of the interests, not only of the Group, but also of all
stakeholders, including employees, customers, suppliers and the many communities in which the Group conducts
business.
Supply of Information
Prior to Board meetings, agendas and Board papers are provided to all Directors in advance to ensure they receive
sufficient relevant information and to allow sufficient time for their detailed review and consideration so as to enable
them to participate effectively in Board decisions. All Directors have the right to make further enquiries where they
consider necessary prior to Board meetings.
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STATEMENT ON CORPORATE GOVERNANCE (continued)
23
The Board therefore expects to receive, on a timely basis, material information about the Group, its activities and
performance, particularly any significant variances from budgets and plans. The Board papers include, among others,
the following:
(i) annual budgets and strategic plans for the Group;
(ii) quarterly and annual financial reports;
(iii) reports of all committees of the Board;
(iv) operational reports and business development issues;
(v) a summary of all circular Board resolutions passed for ratification;
(vi) a summary of correspondences from Bursa Malaysia Berhad/Bursa Malaysia Securities Berhad and vice versa;
(vii) a summary of announcements made to Bursa Malaysia Securities Berhad; and
(viii)a summary of dealings in shares notified by the Directors and principal officers.
Every member of the Board has ready and unrestricted access to the Company Secretaries for advice and services in
carrying out their duties. In addition, the Directors also have the liberty, at the Company’s expense, to seek independent
external professional advice in the furtherance of their duties.
Appointments to the Board
The appointment of new Directors is carried out in a formal and transparent manner under the purview of the Nominating
Committee, which is responsible for making recommendations to the Board on suitable candidates for appointment.
Re-election of Directors
In accordance with the Company’s Articles of Association, all Directors who are appointed by the Board are subject to
election by shareholders at the forthcoming Annual General Meeting after their appointment.
Additionally, in accordance with the Company’s Articles of Association and in compliance with the Bursa Malaysia
Securities Listing Requirements (“Listing Requirements”), one-third (1/3) of the remaining Directors, including the
Group Managing Director, are required to submit themselves for re-election by rotation at each Annual General Meeting.
Directors over seventy (70) years of age are required to submit themselves for re-appointment annually in accordance
with Section 129(6) of the Companies Act, 1965.
Succession Planning
The Board recognises human resource development and succession planning as critical factors in achieving the
Group’s business objectives.
The Group reviews its manpower requirements and updates its organisation charts regularly, and conducts periodic
recruitment drives to fill vacancies as they arise. The Group’s policy is to promote from within where possible.
All staff, including Directors and Senior Management, are encouraged to attend external training courses and seminars
to continuously upgrade their skills set. The Group contributes to the Human Resource Development Fund and sets
aside an amount for training in its annual budget.
Frequency and Attendance of Board Meetings
At least four (4) regularly scheduled meetings are held annually, with additional meetings for particular matters convened
as and when necessary. Informal meetings and consultations are frequently and freely held to share expertise and
experiences. There were five (5) Board meetings held during the financial year ended 31 March 2008. The details of
attendance of each Director are set out below and page 24 of this Annual Report.
Attendance
Independent Directors
Tuan Haji Su’ut bin Haji Suhaili (Deputy Chairman) 5/5
YBhg. Datuk Dr. Stalin Hardin 5/5
YBhg. Datu Voon Chen Hian @ Voon Chen Kok 3/5
Yeoh Chin Hoe (appointed on 1 January 2008) 1/1
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Executive Directors
YBhg. Dato’ Lee Choon Chin (Group Managing Director) 5/5
Jee Hon Chong 4/5
Chew Chin Choong 5/5
Chong Kwan Wai (resigned on 29 May 2007) Not Applicable
Lai Lim Hon (resigned on 30 November 2007) 2/4
Tok Jiak Yong (resigned on 28 March 2008) 3/5
Directors’ Training and Continuing Education Programme
New Board members are guided on a familiarization programme, including visits to the Group’s facilities and meetings
with Senior Management as appropriate, to facilitate their understanding of the Group.
All the Directors have attended the Mandatory Accredited Programme under the Listing Requirements. During the
financial year ended 31 March 2008, the training programmes attended by the Directors are as follows:
Title of seminar Mode of training Number of day spent
� Revised Malaysian Code on Corporate Governance 2007,
Corporate Social Responsibility and Companies Act
Amendment (2007) In-house seminar 1/2 day
� Technical Analysis External seminar 1 day
Board Committees
The Board has established an Audit Committee, a Nominating Committee and a Remuneration and Compensation
Committee to assist the Board in discharging its duties. All Board Committees do not have executive powers but
report to the Board on all matters considered and their recommendations thereon. The terms of reference of each
committee have been approved by the Board and, where applicable, comply with the recommendations of the Code.
(a) Audit Committee
The Audit Committee was established on 17 May 2001. The Report of the Audit Committee is set out on pages
30 to 33 of this Annual Report.
(b) Nominating Committee
Chairman: YBhg. Datu Voon Chen Hian @ Voon Chen Kok (Independent Director)
Members: Tuan Haji Su’ut bin Haji Suhaili (Independent Director)
YBhg. Datuk Dr. Stalin Hardin (Independent Director)
Yeoh Chin Hoe (Independent Director) (appointed on 29 February 2008)
The Nominating Committee was established on 4 February 2002. There were two (2) meetings held during the
financial year ended 31 March 2008.
The functions of the Nominating Committee are to:
� determine the core competencies and skills required of Board members to best serve the business and
operations of the Group as a whole and the optimum size of the Board to reflect the desired skills and
competencies;
� review the size of non-executive participation, Board balance and determine if additional Board members are
required and also to ensure that at least one-third (1/3) of the Board is independent;
� recommend to the Board, all candidates for directorships to be filled by the shareholders or the Board;
� consider, in making its recommendations, candidates for directorships proposed by the Group Managing
Director and, within the bounds of practicality, by any other senior executive or any Director or shareholder;
� recommend to the Board, Directors to fill the seats on Board committees;
� undertake an annual review of the required mix of skills and experience and other qualities of Directors,
including core competencies which non-executive Directors should bring to the Board and to disclose this in
the annual report;
� formulate and implement procedures to be carried out by the Nominating Committee annually for assessing
the effectiveness of the Board as a whole, the Board committees and for assessing the contributions of each
individual Director; and
� introduce such regulations or guidelines, procedures for the Committee to function effectively and fulfil the
Nominating Committee’s objectives.
24
STATEMENT ON CORPORATE GOVERNANCE (continued)
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(c) Remuneration and Compensation Committee
Chairman: Tuan Haji Su’ut bin Haji Suhaili (Independent Director)
Members: YBhg. Datuk Dr. Stalin Hardin (Independent Director)
YBhg. Datu Voon Chen Hian @ Voon Chen Kok (Independent Director)
YBhg. Dato’ Lee Choon Chin (Group Managing Director) (resigned on 29 February 2008)
Yeoh Chin Hoe (Independent Director) (appointed on 29 February 2008)
The Remuneration and Compensation Committee (“RACC”) was established on 23 March 2001. One (1) meeting
was held during the financial year ended 31 March 2008.
The RACC is responsible for recommending the level and make-up of the remuneration of the Executive Directors
of Weida so as to ensure that the Group attracts and retains Directors of the necessary caliber, experience and
quality needed to run the Group successfully. It is nevertheless the responsibility of the entire Board to approve
the remuneration of these Directors.
The fees for the Non-Executive Directors are determined by the Board as a whole.
Directors’ Remuneration
Contrary to the disclosure recommendations as indicated in the Code, the Board would not be providing details of
remuneration awarded to each Director. The Board is of the opinion that matters pertaining to Directors’ remuneration
are of a personal nature. However, the Board wishes to confirm that the level and make-up of remuneration for
Executive Directors were reviewed and recommended by the RACC and approved by the Board as a whole.
In compliance with the Listing Requirements, the fees and remuneration paid to Directors during the financial year
ended 31 March 2008, in aggregate and analysed into bands of RM50,000 are as follows:
Directors Fees Salaries Bonus EPF Other Remuneration Total
RM RM RM RM RM RM
Independent Directors 126,000 Nil 45,000 Nil 12,500 183,500
Executive Directors 165,000 943,306 Nil 113,208 1,784,500 3,006,014
291,000 943,306 45,000 113,208 1,797,000 3,189,514
Remuneration Independent Directors Executive Directors
RM Number Number
1 - 50,000 1 1
50,001 - 100,000 3 -
100,001 - 200,000* - -
200,001 - 250,000 - 2
250,001 - 750,000* - -
750,001 - 800,000 - 1
800,001 - 850,000 - 1
850,001 - 900,000 - -
900,001 - 950,000 - 1
* No Director received any remuneration within this range
INVESTORS RELATIONS & SHAREHOLDERS COMMUNICATION
Investors Relations
The Board acknowledges the need for shareholders to be informed of all material business matters affecting the
Group and values dialogue with investors. In addition to various announcements made during the financial year, the
timely release of financial results on a quarterly basis provides shareholders with an overview of the Group’s
performance and operations.
STATEMENT ON CORPORATE GOVERNANCE (continued)
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Annual General Meeting
The Group has been using the Annual General Meeting, usually held in September each year, as a mean of
communicating with shareholders. Shareholders who are unable to attend are allowed to appoint proxies to attend
and vote on their behalf. Shareholders are encouraged to participate in the question and answer session. Members of
the Board as well as the Auditors of the Company are present to answer questions raised at the meeting.
Members of the Board have also had meetings with analysts and investors during the financial year.
The Group has also put in place facility to enable electronic communication with shareholders via its website
www.weida.com.my. Shareholders can obtain information on the Group by accessing its website.
YBhg. Datuk Dr. Stalin Hardin is the appointed Senior Independent Director to whom concerns or queries concerning
the Group may be conveyed to.
ACCOUNTABILITY AND AUDIT
Financial Reporting
In presenting the annual financial statements and quarterly announcements of results to shareholders, the Directors
are committed to present a balanced and fair assessment of the Group’s position and prospects. The financial reports
are also reviewed by the Audit Committee to ensure adequacy of information disclosed prior to submission to the
Board for approval.
The Board consider that in preparing the financial statements, the Group has used appropriate accounting policies,
consistently applied and supported by reasonable and prudent judgements and estimates. A statement by the Board
of their responsibilities in preparing the financial statements is set out on page 35 of this Annual Report.
Internal Control
The Directors recognise their responsibility for the Group’s system of internal control, which is designed to suit the
particular circumstances of the Group and to manage the risks involved in pursuing the Group’s business objectives.
The system of internal control currently practised by the Group spans not only the financial aspect, but also the
operational and compliance aspects of the Group’s activities in order to safeguard the Group’s assets and hence,
shareholders’ investments. This system, by its nature, can only provide reasonable but not absolute assurance against
misstatement or loss.
Some of the key elements of the Group’s internal control system are outlined in the Statement on Internal Control set
out on page 34 of this Annual Report.
The Board is committed to undertake regular reviews of key commercial, operational and financial risks facing the
Group’s businesses as well as the more general risks such as those relating to compliance with laws and regulations.
In executing this commitment, the Board has established an Internal Audit Department. The scope of the Internal Audit
Department is set out in the Report of the Audit Committee set out on pages 30 to 33 of this Annual Report.
The objectives of periodic reviews of risks and internal audit are to give reasonable assurance that the structure of
controls and operations is appropriate to the Group’s situation and that there is an acceptable level of risk throughout
the Group’s operations.
The Board has implemented a risk management framework in compliance with the guidance issued by the Task Force
on Internal Control, and will continue to enhance it.
Relationship with the External Auditors
Through the Audit Committee, the Group has established a transparent and appropriate relationship with the external
auditors. The Audit Committee meets with the external auditors without the presence of executive members of the
Board and Management at least twice a year.
STATEMENT ON CORPORATE GOVERNANCE (continued)
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ENVIRONMENT AND MARKETPLACE
Protecting the natural environment, sustainable development and living in harmony with
the environment is at the heart of Weida’s core business in the water and sewage sector.
As a one-stop centre for water and sewage solutions, our people strive to protect the
environment everyday. For instance, we have designed and built many water and sewage
treatment plants, thousands of rain water harvesting and gravity feed water supply systems
for rural communities, and countless rural sanitation systems. The communities we serve
are far and wide, in Malaysia, Syria Arab Republic and the Philippines.
The engineering products that we manufacture for water and sewage applications are
made from polyethylene (PE). PE products are corrosion resistant, relatively lightweight,
chemically inert and seamless in construction. These superior characteristics make them
ideal substitutes for similar products made from other materials such as fiberglass, metals
and concrete. The US Food and Drugs Authority, an authority in the US that certifies the
types of materials that are suitable to be in contact with water and food for the purpose of
safeguarding customers/public health, has approved polyethylene as safe for use as a
medium of storage for drinking water and food. Many countries legislate against the use
of alternative materials such as fiberglass, asbestos concrete, and in certain cases, PVC,
for pipelines and water storage as they are hazardous to health and/or pollute the
environment.
Our manufacturing processes entail no waste and no effluent discharge into the drainage
systems and waterways. All rejects are fully recycled and reused.
STATEMENT ON CORPORATE SOCIAL RESPONSIBILITY
As a public listed company, one of our main purposes is to create long term value. We achieve this by providing our
clients with value-added products and services, promoting a corporate culture that adheres to high ethical standards,
and by generating superior and sustainable returns for our shareholders. We firmly believe that sustainable growth
and investment for any business is also dependent on what it does above and beyond what laws and regulations
require. It is why we are committed to creating a working environment based on the values of meritocracy, equal
opportunity and diversity. As part of our business, we have contributed immensely to the protection of the environment.
We also adhere to high social standards and contribute to the communities we are part of. All our activities are
underpinned by our governance structure, which complies with the Malaysian Code on Corporate Governance.
In Weida, doing business in the marketplace, protecting the environment, contributing to and uplifting the communities
we are part of, and developing our people are intricately intertwined.
COMMUNITY
Every year, we contributes back to the communities that we are part
of, in the form of donations in cash as well as in-kind. Organizations
that we have supported include orphanages, societies for autistic
children, retired police associations and religious schools.
WORKPLACE
In the last decade, competition for human resource has intensified tremendously. Indeed,
our people are our most highly prized asset. In terms of career opportunities, our practice
is to promote from within where possible. This is our first priority, to develop our people
and to reward loyalty. As a fast growing company, we are actively recruiting at all times.
Once recruited, we invest in time, effort and money to train and develop our people.
Training, both external and internal, is provided on a focused and relevant basis. Regular
in-house training sessions are a feature of our human resource development effort. We
are also strong believers in a conducive working environment for our staff. Health and
safety is a top priority, with due care and attention in providing proper and sufficient tools
and safety gear to our staff in carrying out their work. This is evidenced by our record of
zero loss-time incidents in our factories the last two years.
Compensation and benefits, in the form of salary increments, bonus, sales and performance
incentives are awarded based on merit. In addition to the annual review, staff performance is
constantly monitored, and in deserving cases, mid-year increments and promotions are given.
27
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ADDITIONAL COMPLIANCE INFORMATION
The following information is presented in compliance with the Bursa Malaysia Securities Listing Requirements:
Utilisation of Proceeds from Corporate Proposal
There were no proceeds raised from any corporate proposals during the financial year under review.
Share Buy-Back
At the Extraordinary General Meeting of Weida held on 13 February 2007, the Directors obtained the shareholders’
approval for the Company to purchase and/or hold its own shares of up to ten percent (10%) of its total issued and
paid-up share capital of the Company (“Share Buy-Back Authority”). The Share Buy-Back Authority was renewed at
the subsequent Annual General Meeting.
During the financial year ended 31 March 2008, a total of 3,953,000 ordinary shares of RM0.50 each of the Company
were purchased pursuant to the Share Buy-Back Authority. All the shares purchased are currently retained as treasury
shares. None of the share purchased has been resold or cancelled.
A monthly breakdown of the shares bought back is set out below:
Price
Month No. Of Shares Average Cost Total Consideration
Highest Lowest RM RM
RM RM
April 2007 - - - - -
May 2007 1,706,400 0.76 0.73 0.75 1,287,583
June 2007 295,000 0.76 0.74 0.76 223,149
July 2007 - - - - -
August 2007 986,500 0.85 0.71 0.81 796,326
September 2007 1,000 0.87 0.87 0.87 873
October 2007 - - - - -
November 2007 341,000 0.75 0.73 0.74 252,767
December 2007 - - - - -
January 2008 - - - - -
February 2008 - - - - -
March 2008 623,100 0.61 0.51 0.58 358,300
Options, Warrants and Convertible Securities
There were no exercise of options, warrants and convertible securities during the financial year.
Depository Receipt Programme
During the financial year under review, the Company did not sponsor any American Depository Receipt or Global
Depository Receipt programme.
Sanctions and/or Penalties
There were no sanctions and/or penalties imposed on the Company and its subsidiaries, Directors or Management by
the relevant regulatory bodies during the financial year ended 31 March 2008.
Non-Audit Fees
The total amount of non-audit fees incurred for services rendered to the Company and its subsidiaries for the financial
year ended 31 March 2008 by the Company’s external auditors, Messrs. KPMG, or a firm or company affiliated to
Messrs. KPMG amounted to RM132,962.
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Variance in Profit Estimate, Forecast or Projection
There were no profit estimate, forecast or projection been announced by the Company during the financial year under
review.
Variance in Results
There was no significant variance between the results for the financial year and the unaudited results previously
released by the Company.
Profit Guarantee
No profit guarantee had been received by the Company in respect of the financial year under review.
Revaluation Policy on Land and Buildings
The Group has adopted the policy to revalue its freehold land and buildings, by external independent valuers, every
five (5) years and at shorter intervals whenever the fair value of the revalued assets is expected to differ materially
from their carrying value. Additions to land and buildings in between revaluation are stated at cost.
Surpluses arising from revaluation are dealt with in the revaluation reserve account. Any deficit arising is offset against
the revaluation reserve to the extent of a previous increase for the same property. In all other cases, a decrease in
carrying amount is charged to the income statement.
Material Contracts Involving Directors/Major Shareholders’ Interests
There were no material contracts entered by the Group involving Directors’ and major shareholders’ interests subsisting
at the end of the financial year under review or entered into since the end of the previous financial year.
Recurrent Related Party Transactions of Revenue Nature (“RRPT”)
During the financial year ended 31 March 2008, no shareholders’ mandate was obtained for the RRPT.
ADDITIONAL COMPLIANCE INFORMATION (continued)
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REPORT OF THE AUDIT COMMITTEE
COMPOSITION OF AUDIT COMMITTEE
The Audit Committee (“the Committee”) comprises the following Directors:
Members
YBhg. Datuk Dr. Stalin Hardin Chairman (Senior Independent Director)
Tuan Haji Su’ut bin Haji Suhaili Member (Deputy Chairman & Independent Director)
Yeoh Chin Hoe Member (Independent Director)
(appointed on 29 February 2008)
Chew Chin Choong Member (Executive Director)
(resigned on 29 February 2008)
Yeoh Chin Hoe is a member of the Malaysian Institute of Accountants and two (2) other associations of accountants
specified in Part II of the 1st Schedule of the Accountants Act 1967.
TERMS OF REFERENCE
The terms of reference of the Committee are as follows:
Constitution
The Committee was established on 17 May 2001. The functions and authority of the Committee extend to Weida (M)
Bhd. and all its subsidiaries, collectively referred to as “the Group”.
Primary Objectives
The Committee has been formed with the following objectives:
(a) enhance openness, integrity and accountability in the Group’s activities so as to safeguard the rights and interests
of the shareholders;
(b) provide assistance to the Board of Directors in fulfilling its fiduciary responsibilities relating to corporate accounting
and reporting practices;
(c) enhance the Group’s business effectiveness and efficiency, quality of the accounting and audit functions and
strengthen the public’s confidence in the Group’s reported results;
(d) maintain, through regularly scheduled meetings, a direct line of communication between the Board of Directors
and the External and Internal Auditors; and
(e) enhance the independence of the internal audit functions.
Membership
The Committee shall be appointed by the Board of Directors from amongst their number and shall consist of not less
than three (3) members. All the Committee members must be non-executive directors, with a majority of them being
independent directors. No alternate directors shall be appointed as a member of the Committee.
At least one (1) member of the Committee:
� must be a member of Malaysian Institute of Accountants (“MIA”); or
� if he is not a member of the MIA, he must have at least three (3) years working experience and:
- he must have passed the examinations specified in Part I of the 1st Schedule of the Accountants Act 1967; or
- he must be a member of one (1) of the associations of accountants specified in Part II of the 1st Schedule of
the Accountants Act 1967; or
� fulfils such other requirements as prescribed or approved by Bursa Malaysia Securities Berhad (“Bursa Securities”).
If membership of the Committee for any reason falls below three (3) members, the Board of Directors shall, within
three (3) months of that event, appoint such number of new members as may be required to fulfil the minimum
requirement.
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Chairman
The Chairman of the Committee shall be an independent director appointed by the Board of Directors.
Secretary
The Secretary to the Committee shall be any of the Joint Company Secretaries.
Quorum
A quorum shall consist of a majority of independent directors and shall not be less than two (2) independent directors.
Meetings and Minutes
The Committee shall hold at least four (4) meetings a year. Additional meetings may be held as and when necessary,
upon request by any Committee member, the Management, Internal or External Auditors. The Internal Audit Manager
and the Group Financial Controller are normally invited to attend the meetings. Other members of the Board of
Directors, employees and representatives of External Auditors shall attend the meetings upon the invitation of the
Committee.
The Committee shall meet with the External Auditors, excluding the attendance of other Directors and employees of
the Group, at least twice a year, or whenever deemed necessary.
The Committee may also meet with the Internal Auditors, excluding the attendance of other Directors and employees
of the Group, whenever deemed necessary.
Minutes of meetings shall be kept and distributed to each member of the Committee. The Chairman of the Committee
shall report on each meeting to the Board of Directors.
Review of the Composition of the Committee
The term of office and performance of the Committee and each of the members shall be reviewed by the Board of
Directors at least once every three (3) years to determine whether the Committee and its members have carried out
their duties in accordance with their terms of reference.
Authority
The Committee is authorised by the Board of Directors to:
(a) investigate any activity within its terms of reference and shall have unrestricted access to all employees of the
Group;
(b) have the resources in order to perform its duties as set out in its terms of reference;
(c) have full and unrestricted access to information pertaining to the Group;
(d) have direct communication channels with the Internal and External Auditors;
(e) obtain external legal or other independent professional advice as necessary; and
(f) convene meetings with the Internal Auditors, External Auditors or both, excluding the attendance of other Directors
and employees of the Group.
Notwithstanding anything to the contrary hereinbefore stated, the Committee does not have executive powers and
shall report to the Board of Directors on matters considered and its recommendations thereon, pertaining to the
Group.
Responsibility
Where the Committee is of the view that a matter reported by it to the Board of Directors has not been satisfactorily
resolved resulting in a breach of the Bursa Malaysia Securities Listing Requirements, the Committee has the
responsibility to promptly report such matter to Bursa Securities.
REPORT OF THE AUDIT COMMITTEE (continued)
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REPORT OF THE AUDIT COMMITTEE (continued)
Functions and Duties
The duties of the Committee are to:
(a) consider the nomination, appointment, resignation and dismissal of External Auditors and their audit fee;
(b) consider whether there is reason (supported by grounds) to believe that the External Auditors of the Group are not
suitable for re-appointment;
(c) review the nature and scope of audit plans prepared by the Internal and External Auditors, and ensure co-ordination
where more than one (1) audit firm is involved;
(d) review the audit reports prepared by the Internal and External Auditors, the major findings and Management’s
responses thereto;
(e) discuss problems and reservations arising from the interim and final audits, and any matter the External Auditors
may wish to bring up;
(f) review the quarterly and annual financial statements of the Group primarily focusing on the matters set out below,
before submission to the Board:
� changes in or implementation of accounting policies and practices, where applicable;
� significant audit adjustments;
� significant and unusual events;
� the going concern assumption; and
� compliance with accounting standards and other regulatory requirements;
(g) consider the internal audit reports, major findings and Management’s responses thereto on any internal
investigations carried out by the Internal Auditors and ensure that appropriate action is taken by Management in
respect of the audit observations and the Committee’s recommendations;
(h) review the External Auditors’ evaluation of the system of internal controls;
(i) review the adequacy of the scope, functions, competency and resources of the internal audit functions and whether
it has the necessary authority to carry out its work;
(j) review any appraisal or assessment of the performance of the staff in the internal audit department;
(k) approve the appointment or termination of senior executives in the internal audit department;
(l) be informed of any resignation of executives in the internal audit department and to provide the resigning executive
an opportunity to submit his or her reason for resigning;
(m) review the assistance given by the Group’s employees to the Internal and External Auditors;
(n) review any related party transaction and conflict of interest situation that may arise within the Group including any
transaction, procedure or course of conduct that raises questions of management integrity; and
(o) perform any other functions as may be agreed to by the Committee and the Board of Directors or as may be
required or empowered by statutory legislation or guidelines prepared by other relevant governing authorities.
ACTIVITIES OF THE COMMITTEE DURING THE FINANCIAL YEAR
Meetings and Attendance
During the financial year ended 31 March 2008, the Committee held a total of five (5) meetings. The details of attendance
of each Committee member are as follows:
Attendance
YBhg. Datuk Dr. Stalin Hardin 5/5
Tuan Haji Su’ut bin Haji Suhaili 5/5
Chew Chin Choong (resigned on 29 February 2008) 5/5
Yeoh Chin Hoe (appointed on 29 February 2008) Not Applicable
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Summary of Activities
The Committee, had in line with its terms of reference, carried out the following activities in the discharge of its
functions and duties during the financial year ended 31 March 2008:
(a) review of the quarterly financial results and annual audited financial statements of the Group prior to submission
to the Board of Directors for consideration and approval;
(b) review of the annual audit strategy and review planning memorandum of the External Auditors;
(c) review and deliberate on the External Auditors’ reports in relation to the statutory audit and issues arising from the
audit;
(d) review and approve the annual internal audit plan and updates thereof prepared by the Internal Audit Department;
(e) review and deliberate the internal audit reports presented by the Internal Audit Department on findings,
recommendations (incorporating Management’s response) and action plans with persons responsible and a time
frame for implementation of the recommendations;
(f) review of any related party transaction and conflict of interest situation that may arise within the Group including
any transaction, procedure or course of conduct that raises questions of Management integrity prior to submission
to the Board of Directors for ratification, consideration and approval;
(g) review the procurement and payment policies and procedures of the Group prior to recommendation to the Board
of Directors for approval;
(h) review adequacy of the disclosure on related party transactions entered into by the Group in the quarterly and
annual reports of the Company;
(i) meet with the Internal and External Auditors, excluding the attendance of other Directors and employees of the
Group, except the Joint Company Secretary;
(j) consider the nomination and re-appointment of External Auditors, as well as their fees;
(k) review the Report of the Committee and Statement on Internal Control prior to submission to the Board of Directors
for its approval;
(l) deliberate on the resignation of the Assistant Internal Audit Manager; and
(m) review the proposed amendments to the Terms of Reference of the Committee prior to recommendation to the
Board of Directors for approval.
Internal Audit Functions And Activities
The Company has an Internal Audit Department (“IAD”) which assists the Committee in the discharge of its duties and
responsibilities. The Internal Audit Charter sets out the responsibility, scope and objectives, independence and authority
of the internal audit function. The principal responsibility of the IAD is to undertake regular and systematic reviews of
the system of controls based on the risks identified in the Risk Profile so as to provide reasonable assurance to the
Committee on the adequacy of internal controls and that they have been operating satisfactorily and effectively.
In attaining these objectives, the scopes of activities of the IAD include the following:
(a) review and appraise the soundness, adequacy and application of the system of internal controls and recommend
improvements thereon;
(b) ascertain the extent of compliance with established policies, procedures and statutory requirements;
(c) appraise the reliability, integrity and usefulness of financial and management information developed;
(d) carry out audit work in liaison with the External Auditors to maximise the use of resources and for effective
coverage of relevant risks;
(e) review the controls for safeguarding assets and as appropriate, verify the existence of assets;
(f) carry out special reviews and investigations requested by the Committee, Board of Directors and Managing Director;
and
(g) identify ways and opportunities to improve the effectiveness and efficiency of the operations and processes of the
Group.
The IAD had, during the financial year ended 31 March 2008, been tasked to evaluate the operational and financial
cycles of the plantation division and an overseas unit. This evaluation is presently still being carried out. The IAD had
also reviewed the procurement and payment policies and procedures of the Group and report the findings and
recommendations to the Committee. The internal audit reports were deliberated on by the Committee and
recommendations were duly acted upon by the Management.
This report of the Committee is made in accordance with a resolution of the Board of Directors dated 29 July 2008.
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REPORT OF THE AUDIT COMMITTEE (continued)
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STATEMENT ON INTERNAL CONTROL
BOARD RESPONSIBILITY
The Board of Directors recognises the importance of maintaining a sound system of internal control and the proper
management of risks throughout its operations in order to safeguard shareholders’ investments. The Board affirms its
overall responsibility for the Group’s systems of internal control and risk management, and for reviewing the adequacy
and integrity of those systems. It should be noted, however, that such systems are designed to manage rather than
eliminate the risk of failure to achieve business objectives. Accordingly, these systems can only provide reasonable
but not absolute assurance against material misstatement or loss.
RISK MANAGEMENT FRAMEWORK
The Board confirms that it has an ongoing process of identifying, documenting, evaluating, monitoring and managing
significant risks affecting the major businesses of the Group. A Group Risk Profile has been set up to document, inter
alia:
(i) the principal risks faced by the major businesses of the Group under appropriate risk categories, levels and sub-
levels;
(ii) the likelihood of risks crystalising and the resulting impact; and
(iii) the internal controls framework that exists within the Group to address those risks.
The Group’s Risk Profile also provides a two-dimensional scoring by reference to the likelihood of crystalisation of the
risks and the materiality of impact.
In addition, the Board has established an organisational structure with clearly defined lines of accountability and
authority for each Board member. The responsibility of the Audit Committee includes monitoring of internal controls of
the Group, with the assistance of the Internal Audit Department. The scope of the activities of the Internal Audit
Department is set out in the Report of the Audit Committee on pages 30 to 33 of this Annual Report.
The Internal Audit Department (“IAD”) presents its annual audit plan prior to carrying out internal audit reviews. Its
scope of works includes periodic review and evaluation of various operational controls, financial controls and regulatory
compliance.
The Group believes that proper controls and procedures have to be established for starting new business units. As
such, the IAD had during the year been tasked to evaluate the operational and financial cycles of the plantation
division and an overseas unit. This evaluation is presently still being carried out.
The monitoring, review and reporting process in place gives reasonable assurance that the structure of controls is
appropriate to the Group’s operations and that risks are at an acceptable level throughout the Group’s business.
OTHER PRINCIPAL INTERNAL CONTROL FEATURES
The other principal control features established within the Group include:
� clearly defined terms of reference, responsibilities and authorities of the various committees. The Committees
established are:
- Audit Committee
- Nominating Committee
- Remuneration and Compensation Committee;
� Nominating Committee recommends to the Board, candidates for directorship;
� Remuneration and Compensation Committee reviews the remuneration package of each Director by reference to
the performance of the Director;
� the Audit Committee and the Board review the Group’s financial performance prior to announcements to Bursa
Malaysia Securities Berhad;
� comprehensive and detailed monthly financial reports for review by Senior Management;
� a detailed budgeting process where operating units prepare budgets for approval by the Board on a yearly basis;
� quarterly monitoring of actual results against budgets, with major variances being followed up and management
actions being taken, where necessary;
� major capital expenditure and asset disposals are appraised and approved by the Board; and
� regular visits to operating units by members of the Board and Senior Management.
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STATEMENT OF DIRECTORS’ RESPONSIBILITIESFor Preparing The Annual Financial Statement
STATEMENT ON INTERNAL CONTROL (continued)
CONTROL WEAKNESSES THAT RESULT IN MATERIAL LOSSES
During the financial year, none of the internal controls weakness noted have resulted in any material losses,
contingencies or uncertainties that would require disclosure in the Group’s Annual Report.
This statement is made in accordance with a resolution of the Board of Directors dated 29 July 2008.
The Directors are required by the Companies Act, 1965 (“the Act”) to prepare financial statements for each financial
year which give a true and fair view of the state of affairs of the Company and the Group at the end of the financial year
and the results and cash flows of the Company and the Group for the financial year.
As required by the Act, the financial statements have been prepared in accordance with the applicable approved
Financial Reporting Standards issued by the Malaysian Accounting Standards Board and the provisions of the Act.
The Directors have considered that in preparing the financial statements for the financial year ended 31 March 2008
set out on pages 37 to pages 96 of this Annual Report, appropriate accounting policies have been adopted and are
consistently applied and supported by reasonable and prudent judgements and estimates.
The Directors have responsibility to ensure the Company and the Group maintain proper accounting records which
disclose with reasonable accuracy, the financial position and performance of the Company and the Group, and to
enable them to ensure the financial statements comply with the Act. The Directors have overall responsibility for
taking such steps as are reasonably open to them to safeguard the assets of the Company and the Group and to
prevent and detect fraud and other irregularities.
This statement is made in accordance with a resolution of the Board of Directors dated 29 July 2008.
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DIRECTORS’ REPORTFor The Financial Year Ended 31 March 2008
The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the
Company for the financial year ended 31 March 2008.
PRINCIPAL ACTIVITIES
The Company is principally engaged in investment holding and the provision of management services to its subsidiaries,
while the principal activities of the subsidiaries are stated in Note 7 to the financial statements. There has been no
significant change in the nature of these activities during the financial year.
RESULTS
Group Company
RM RM
Profit attributable to:
Shareholders of the Company 10,655,943 (2,559,071)
Minority interest 428,517 -
11,084,460 (2,559,071)
DIVIDEND
Since the end of the previous financial year, the Company paid a first and final dividend of 4.00 sen per ordinary share
less tax at 27% totaling RM3,739,352 (equivalent to 2.92 sen net per ordinary share) in respect of the financial year
ended 31 March 2007 on 23 November 2007.
The Directors do not recommend any dividend to be paid for the financial year under review.
RESERVES AND PROVISIONS
There were no material transfers to or from reserves and provisions during the financial year.
DIRECTORS OF THE COMPANY
Directors who served since the date of the last report are:
Tuan Haji Su’ut Bin Haji Suhaili
Dato’ Lee Choon Chin
Datu Voon Chen Hian @ Voon Chen Kok
Datuk Dr. Stalin Hardin
Jee Hon Chong
Chew Chin Choong
Yeoh Chin Hoe (appointed on 1.1.2008)
Lai Lim Hon (resigned on 30.11.2007)
Tok Jiak Yong (resigned on 28.3.2008)
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The interests and deemed interests in the ordinary shares of the Company and of its related corporations (other than
wholly-owned subsidiaries) of the Directors (including where applicable the interests of their spouses or children who
themselves are not Directors of the Company or of the related corporations, as the case may be) at financial year end
as recorded in the Register of Directors’ Shareholdings are as follows:
Number of ordinary shares of RM0.50 each
At 1.4.2007 Bought Sold At 31.3.2008
Shareholdings in the Company
in which Directors have interests
Direct interests
Tuan Haji Su’ut Bin Haji Suhaili 33,334 - - 33,334
Dato’ Lee Choon Chin 7,074,242 - - 7,074,242
Datu Voon Chen Hian @ Voon Chen Kok 40,000 - - 40,000
Datuk Dr. Stalin Hardin 33,334 - - 33,334
Jee Hon Chong 15,226 - - 15,226
Deemed interests
Tuan Haji Su’ut Bin Haji Suhaili 177,966 - - 177,966
Datu Voon Chen Hian @ Voon Chen Kok 70,000 - - 70,000
Number of ordinary shares
Par value At At
RM 1.4.2007 Bought Sold 31.3.2008
Shareholdings in which Dato’ Lee Choon Chin
has deemed interests
The Company * 0.50 29,124,524 - - 29,124,524
Weidaya Sdn. Bhd. ** 1.00 350,000 - - 350,000
Weida Marketing Sdn. Bhd. ** 1.00 255,000 - - 255,000
Weida Environmental Technology Sdn. Bhd. ** 1.00 51,000 - - 51,000
Sar-Alam Indah Sdn. Bhd. ** 1.00 5,100 700 - 5,800
UTIC Services Sdn. Bhd. ** 1.00 1,020,000 - - 1,020,000
UTIC Industries Sdn. Bhd. ** 1.00 - 2 - 2
Weidasar Engineering Sdn. Bhd. ** 1.00 510,000 130,000 - 640,000
Renexus–Weida Sdn. Bhd. ** 1.00 201,960 110,880 - 312,840
Bumi Suria Ventures Sdn. Bhd. ** 1.00 4,000,000 - - 4,000,000
Weida (B) Sdn. Bhd.** 1.00 - 24,999 - 24,999
Weida Water (ADRA) Sdn. Bhd. ** 1.00 - 51,000 - 51,000
* Deemed interest by virtue of his substantial interest in Weida Management Sdn. Bhd..
** Deemed interest by virtue of his substantial interest in Weida (M) Bhd..
None of the other Directors holding office at 31 March 2008 had any interest in the ordinary shares of the Company
and of its related corporations during the financial year.
DIRECTORS’ BENEFITS
Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive
any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by
certain Directors as shown in the financial statements of the Company or of its related corporations, as the case may
be) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the
Director is a member, or with a company in which the Director has a substantial financial interest, other than certain
Directors who have significant financial interests in companies which traded with certain companies in the Group in
the ordinary course of business (see also Note 29 to the financial statements).
There were no arrangements during and at the end of the financial year which had the object of enabling Directors of
the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other
body corporate.
DIRECTORS’ REPORTFor The Financial Year Ended 31 March 2008 (continued)
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DIRECTORS’ REPORTFor The Financial Year Ended 31 March 2008 (continued)
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ISSUE OF SHARES
There were no changes in the authorised, issued and paid-up capital of the Company during the financial year.
OPTIONS GRANTED OVER UNISSUED SHARES
No options were granted to any person to take up unissued shares of the Company during the financial year.
OTHER STATUTORY INFORMATION
Before the balance sheets and income statements of the Group and of the Company were made out, the Directors
took reasonable steps to ascertain that:
(i) all known bad debts have been written off and adequate provision made for doubtful debts, and
(ii) all current assets have been stated at the lower of cost and net realisable value.
At the date of this report, the Directors are not aware of any circumstances:
(i) that would render the amount written off for bad debts, or the amount of the provision for doubtful debts, in the
Group and in the Company inadequate to any substantial extent, or
(ii) that would render the value attributed to the current assets in the financial statements of the Group and of the
Company misleading, or
(iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group
and of the Company misleading or inappropriate, or
(iv) not otherwise dealt with in this report or the financial statements, that would render any amount stated in the
financial statements of the Group and of the Company misleading.
At the date of this report, there does not exist:
(i) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and
which secures the liabilities of any other person, or
(ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial
year.
No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become
enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors,
will or may substantially affect the ability of the Group and of the Company to meet their obligations as and when they
fall due.
In the opinion of the Directors, except as disclosed in the financial statements, the results of the operations of the
Group and of the Company for the financial year ended 31 March 2008 have not been substantially affected by any
item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the
interval between the end of that financial year and the date of this report.
AUDITORS
The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
Tuan Haji Su’ut Bin Haji Suhaili
Dato’ Lee Choon Chin
Kuching,
Date: 29 July 2008
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STATEMENT BY DIRECTORSPursuant To Section 169(15) Of The Companies Act, 1965
40
In the opinion of the Directors, the financial statements set out on pages 42 to 96 are drawn up in accordance with the
provisions of the Companies Act, 1965 and applicable approved Financial Reporting Standards issued by the Malaysian
Accounting Standards Board, so as to give a true and fair view of the state of affairs of the Group and of the Company
at 31 March 2008 and of the results of their operations and cash flows for the financial year ended on that date.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
Tuan Haji Su’ut Bin Haji Suhaili
Dato’ Lee Choon Chin
Kuching,
Date: 29 July 2008
I, Chew Chin Choong, the Director primarily responsible for the financial management of Weida (M) Bhd., do solemnly
and sincerely declare that the financial statements set out on pages 42 to 96 are, to the best of my knowledge and
belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the
provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the abovenamed in Kuching in the State of Sarawak on 29 July 2008
Chew Chin Choong
Before me:
STATUTORY DECLARATIONPursuant To Section 169(16) Of The Companies Act, 1965
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INDEPENDENT AUDITORS’ REPORTTo The Members Of Weida (M) Bhd.
Report on the Financial Statements
We have audited the financial statements of Weida (M) Bhd., which comprise the balance sheets as at 31 March 2008
of the Group and of the Company, and the income statements, statements of changes in equity and cash flow statements
of the Group and of the Company for the financial year then ended, and a summary of significant accounting policies
and other explanatory notes, as set out on pages 42 to 96.
Directors’ Responsibility for the Financial Statements
The directors of the Company are responsible for the preparation and fair presentation of these financial statements
in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia. This responsibility
includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgment, including the assessment of risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider
internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards
and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and
of the Company as of 31 March 2008 and of their financial performance and cash flows for the financial year then ended.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:
(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company
and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions
of the Act.
(b) We have considered the accounts and the auditors’ reports of the subsidiaries of which we have not acted as
auditors, which are indicated in Note 7 to the financial statements.
(c) We are satisfied that the accounts of the subsidiaries that have been consolidated with the Company’s financial
statements are in form and content appropriate and proper for the purposes of the preparation of the financial
statements of the Group and we have received satisfactory information and explanations required by us for those
purposes.
(d) The audit reports on the accounts of the subsidiaries did not contain any qualification or any adverse comment
made under Section 174(3) of the Act.
Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies
Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content
of this report.
KPMG Wee Beng Chuan
Firm Number: AF 0758 Chartered Accountants
Chartered Accountants Approval Number: 2677/12/08 (J)
Kuching,
Date: 29 July 2008
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BALANCE SHEETSAt 31 March 2008
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Note Group Company
2008 2007 2008 2007
RM RM RM RM
Assets
Property, plant and equipment 3 44,706,869 40,168,538 3,279,411 1,614,660
Prepaid lease payments 4 50,673,911 47,175,140 1,723,592 -
Plantation development expenditure 5 2,133,706 - - -
Intangible asset 6 3,754,714 1,202,842 - -
Investment in subsidiaries 7 - - 28,593,743 37,409,045
Investment in associates 8 - 382,264 - -
Other investments 9 11,913,916 526,190 11,146,443 76,190
Trade receivables 10 8,070,984 47,344,566 36,595,214 14,700,420
Deferred tax assets 11 407,000 2,081,000 - 309,000
Total non-current assets 121,661,100 138,880,540 81,338,403 54,109,315
Inventories 12 31,802,663 27,886,161 - -
Properties held for resale 13 322,322 440,822 - -
Trade and other receivables 10 186,295,731 56,010,716 114,590,647 62,295,564
Current tax assets 1,203,706 2,010,779 - 147,551
Cash and bank balances 14 37,608,645 18,329,203 5,513,887 409,851
Total current assets 257,233,067 104,677,681 120,104,534 62,852,966
Total assets 378,894,167 243,558,221 201,442,937 116,962,281
Equity
Share capital 15 66,666,666 66,666,666 66,666,666 66,666,666
Reserves 16 54,952,008 50,992,550 (4,780,115) 4,437,306
Total equity attributable to
shareholders of the Company 121,618,674 117,659,216 61,886,551 71,103,972
Minority interest 2(a)(iv) 18,315,730 19,259,812 - -
Total equity 139,934,404 136,919,028 61,886,551 71,103,972
Liabilities
Loans and borrowings 17 42,968,546 102,441 42,734,170 -
Deferred tax liabilities 11 12,687,000 12,281,000 98,000 -
Total non-current liabilities 55,655,546 12,383,441 42,832,170 -
Trade and other payables 18 79,920,135 43,864,852 26,046,499 15,858,309
Loans and borrowings 17 101,033,900 49,234,157 70,000,000 30,000,000
Current tax liabilities 2,350,182 1,156,743 677,717 -
Total current liabilities 183,304,217 94,255,752 96,724,216 45,858,309
Total liabilities 238,959,763 106,639,193 139,556,386 45,858,309
Total equity and liabilities 378,894,167 243,558,221 201,442,937 116,962,281
The notes on pages 50 to 96 are an integral part of these financial statements.
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INCOME STATEMENTSFor The Financial Year Ended 31 March 2008
Note Group Company
2008 2007 2008 2007
RM RM RM RM
Revenue 19 198,905,659 187,354,318 14,050,814 11,940,272
Other income 6,747,389 4,786,324 6,911,716 4,169,068
Changes in inventories 1,731,823 (3,341,454) - -
Raw materials and consumables used (38,971,220) (39,079,601) - -
Purchase of finished goods (10,541,393) (7,442,104) - -
Contractors’ fees (71,765,932) (66,719,494) - -
Employee benefits 20 (18,029,721) (20,539,400) (933,379) (4,683,080)
Depreciation and amortisation expenses 20 (4,990,573) (4,926,376) (602,592) (706,421)
Plant and production overheads (9,853,051) (9,378,813) - -
Transportation charges (4,564,332) (4,254,865) - -
Other expenses (23,619,040) (14,121,198) (3,302,398) (3,220,195)
Allowance for diminution in value of
other investments 9 (2,148,417) - (2,148,417) -
Impairment loss on investment in
subsidiaries 7 - - (8,543,297) -
Interest expense 20 (3,466,463) (1,702,625) (3,830,571) (1,117,474)
Share of profit after tax of equity
accounted associates 579,647 5,067 - -
Profit before taxation 20 20,014,376 20,639,779 1,601,876 6,382,170
Tax expense 22 (8,929,916) (4,745,035) (4,160,947) (877,692)
Profit/(Loss) for the financial year 11,084,460 15,894,744 (2,559,071) 5,504,478
Attributable to:
Shareholders of the Company 10,655,943 14,689,242 (2,559,071) 5,504,478
Minority interest 428,517 1,205,502 - -
Profit/(Loss) for the financial year 11,084,460 15,894,744 (2,559,071) 5,504,478
Basic/Diluted earnings per ordinary
share (sen) 23 8.30 11.03
Dividend per ordinary share - net (sen) 24 - 2.92
The notes on pages 50 to 96 are an integral part of these financial statements.
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STATEMENTS OF CHANGES IN EQUITYFor The Financial Year Ended 31 March 2008
44
Attributable to shareholders of the Company
Non-distributable
Share capital Revaluation reserve Merger deficit Translation reserve
Group RM RM RM RM
At 1 April 2006 66,666,666 8,269,625 (16,983,045) -
Realisation of revaluation reserve - (176,942) - -
Profit for the financial year - - - -
Total recognised income and
expenses for the financial year - (176,942) - -
Shares issued by a subsidiary - - - -
Treasury shares acquired (Note 16) - - - -
Acquisition of subsidiaries (Note 30) - - - -
Dividends paid to:
- shareholders of the Company
(Note 24) - - - -
- minority shareholders - - - -
At 31 March 2007/1 April 2007 66,666,666 8,092,683 (16,983,045) -
Foreign exchange translation
differences - - - (38,135)
Realisation of revaluation reserve - (179,333) - -
Net gains recognised directly in
equity - (179,333) - (38,135)
Profit for the financial year - - - -
Total recognised income and
expenses for the financial year - (179,333) - (38,135)
Treasury shares acquired (Note 16) - - - -
Shares issued by a subsidiary - - - -
Acquisition of minority interest
(Note 30) - - - -
Disposal of subsidiaries (Note 30) - - - -
Dividends paid to:
- shareholders of the Company
(Note 24) - - - -
- minority shareholders - - - -
At 31 March 2008 66,666,666 7,913,350 (16,983,045) (38,135)
(Note 15) (Note 16) (Note 16) (Note 16)
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Attributable to shareholders of the Company
Non-distributable Distributable
Treasury shares Other reserve Retained earnings Total Minority interest Total equity
RM RM RM RM RM RM
- 150,000 48,349,369 106,452,615 6,229,955 112,682,570
- - (176,942) - - -
- - 14,689,242 14,689,242 1,205,502 15,894,744
- - 14,866,184 14,689,242 1,205,502 15,894,744
- - - - 245,000 245,000
(1,562,641) - - (1,562,641) - (1,562,641)
- - - - 11,639,361 11,639,361
- - (1,920,000) (1,920,000) - (1,920,000)
- - - - (60,006) (60,006)
(1,562,641) 150,000 61,295,553 117,659,216 19,259,812 136,919,028
- - - (38,135) - (38,135)
- - 179,333 - - -
- - 179,333 (38,135) - (38,135)
- - 10,655,943 10,655,943 428,517 11,084,460
- - 10,835,276 10,617,808 428,517 11,046,325
(2,918,998) - - (2,918,998) - (2,918,998)
- - - - 49,000 49,000
- - - - (376,486) (376,486)
- - - - (985,113) (985,113)
- - (3,739,352) (3,739,352) - (3,739,352)
- - - - (60,000) (60,000)
(4,481,639) 150,000 68,391,477 121,618,674 18,315,730 139,934,404
(Note 16) (Note 16)
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Distributable
Non-distributable Retained earnings/
Share capital Treasury share (Accumulated losses) Total
RM RM RM RM
Company
At 1 April 2006 66,666,666 - 2,415,469 69,082,135
Profit for the financial year - - 5,504,478 5,504,478
Treasury shares acquired (Note 16) - (1,562,641) - (1,562,641)
Dividend (Note 24) - - (1,920,000) (1,920,000)
At 31 March 2007/1 April 2007 66,666,666 (1,562,641) 5,999,947 71,103,972
Loss for the financial year - - (2,559,071) (2,559,071)
Treasury shares acquired (Note 16) - (2,918,998) - (2,918,998)
Dividend (Note 24) - - (3,739,352) (3,739,352)
At 31 March 2008 66,666,666 (4,481,639) (298,476) 61,886,551
(Note 15) (Note 16) (Note 16)
46
STATEMENTS OF CHANGES IN EQUITYFor The Financial Year Ended 31 March 2008 (continued)
The notes on pages 50 to 96 are an integral part of these financial statements.
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Group Company
2008 2007 2008 2007
RM RM RM RM
Cash flows from operating activities
Profit before taxation 20,014,376 20,639,779 1,601,876 6,382,170
Adjustments for:
Allowance for diminution in value of
other investments 2,148,417 - 2,148,417 -
Depreciation and amortisation expenses
(Note 20) 4,990,573 4,926,376 602,592 706,421
Dividend income (392,696) (4,100) (8,801,064) (6,676,722)
(Gain)/Loss on disposal of:
- subsidiaries (41,027) 52,014 (238,875) 52,014
- associates 528,910 (14,999) - -
- other investments (38,712) (889,378) (38,712) (889,378)
- property, plant and equipment (9,135) (319,292) (11,640) 1,668
Interest expense 3,466,463 1,702,625 3,830,571 1,117,474
Interest income (1,003,350) (110,148) (6,560,869) (3,287,867)
Impairment loss on investment in:
- subsidiaries (Note 7) - - 8,543,297 -
- associates (Note 8) 49,001 - - -
Goodwill written off (Note 6) 71,642 - - -
Negative goodwill on consolidation
recognised (Note 30) - (322,532) - -
Share of profit after tax of equity accounted
associates (579,647) (5,067) - -
Unrealised foreign exchange loss (Note 20) 1,487,207 - - -
Operating profit/(loss) before changes in
working capital 30,692,022 25,655,278 1,075,593 (2,594,220)
Changes in working capital:
Inventories (3,978,018) 1,384,556 - -
Properties held for resale 118,500 284,924 - -
Trade and other receivables (92,801,218) (45,127,237) (74,189,877) (34,357,983)
Trade and other payables 36,421,698 9,389,472 10,188,190 14,223,724
Cash used in operations (29,547,016) (8,413,007) (62,926,094) (22,728,479)
Interest expense (943,313) (716,815) - -
Taxes paid (4,841,404) (7,361,122) (554,396) (199,998)
Net cash used in operating activities (35,331,733) (16,490,944) (63,480,490) (22,928,477)
CASH FLOW STATEMENTSFor The Financial Year Ended 31 March 2008
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Group Company
2008 2007 2008 2007
RM RM RM RM
Cash flows from investing activities
Acquisition of associate - (120,000) - -
Acquisition of new subsidiaries (Note 30)
- consideration paid - - (107,995) (12,100,000)
- net of cash acquired - (7,042,607) - -
Acquisition of property, plant and equipment
and prepaid lease payments [Note (i)] (14,505,835) (8,193,043) (4,196,675) (724,977)
Acquisition of other investments (13,486,651) (4,455,397) (13,019,178) (4,455,397)
Increase in investment in subsidiaries
(Note 30) (3,000,000) - (130,000) (254,998)
Plantation development expenditure, net of
depreciation capitalised (1,899,645) - - -
Decrease in deposits pledged with banks
(Note 14) 412,400 827,898 - -
Proceeds from disposal of:
- associate 384,000 - - -
- subsidiaries - - 598,875 196,350
- other investments 95,136 5,292,746 95,136 5,096,397
- property, plant and equipment 637,784 1,233,156 217,380 1,766
Dividends received 286,780 3,510 6,320,865 6,143,524
Interest received 1,003,350 110,148 6,560,869 3,287,867
Net cash used in investing activities (30,072,681) (12,343,589) (3,660,723) (2,809,468)
Cash flows from financing activities
Proceeds from issuance of shares to
minority shareholders 49,000 245,000 - -
Net proceeds from borrowings 34,331,833 2,978,150 22,734,170 -
Repurchase of treasury shares (Note 16) (2,918,998) (1,562,641) (2,918,998) (1,562,641)
Net proceeds from Islamic Bonds issued
(Note 17) 60,000,000 30,000,000 60,000,000 30,000,000
Dividends paid to:
- shareholders of the Company (Note 24) (3,739,352) (1,920,000) (3,739,352) (1,920,000)
- minority shareholders of subsidiaries (60,000) (60,006) - -
Interest paid (2,523,150) (985,810) (3,830,571) (1,117,474)
Net cash generated from financing activities 85,139,333 28,694,693 72,245,249 25,399,885
Net increase/(decrease) in cash and cash
equivalents 19,734,919 ( 139,840) 5,104,036 ( 338,060)
Cash and cash equivalents at beginning of
financial year 17,873,646 18,013,486 409,851 747,911
Cash and cash equivalents at end of
financial year [Note (ii)] 37,608,565 17,873,646 5,513,887 409,851
CASH FLOW STATEMENTSFor The Financial Year Ended 31 March 2008 (continued)
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Notes
(i) Acquisition of property, plant and equipment and prepaid lease payments
During the year, the Group and the Company acquired property, plant and equipment and prepaid lease payments
in the following manner:
Group Company
2008 2007 2008 2007
RM RM RM RM
Paid for in cash 14,505,835 8,193,043 4,196,675 724,977
Acquired via finance leases 377,092 - - -
14,882,927 8,193,043 4,196,675 724,977
(ii) Cash and cash equivalents
Cash and cash equivalents included in the cash flow statements comprise the following balance sheet amounts:
Group Company
2008 2007 2008 2007
RM RM RM RM
Fixed deposits placed with banks 18,837,953 2,852,856 200,000 -
Cash and bank balances 18,770,692 15,476,347 5,313,887 409,851
Bank overdrafts repayable on demand (80) (43,157) - -
37,608,565 18,286,046 5,513,887 409,851
Less: Deposits pledged - (412,400) - -
37,608,565 17,873,646 5,513,887 409,851
CASH FLOW STATEMENTSFor The Financial Year Ended 31 March 2008 (continued)
The notes on pages 50 to 96 are an integral part of these financial statements.
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50
Weida (M) Bhd. is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main
Board of Bursa Malaysia Securities Berhad (“Bursa Securities”). The addresses of its registered office and principal
places of business are as follows:
Registered office
Wisma Hock Peng, Ground Floor to 2nd Floor, 123, Green Heights, Jalan Lapangan Terbang, 93250 Kuching, Sarawak.
Principal places of business
Kuching branch: Wisma Hock Peng, Ground Floor to 2nd Floor, 123, Green Heights,
Jalan Lapangan Terbang, 93250 Kuching, Sarawak.
Kota Kinabalu branch: 2-9-1 & 2-9-2, 8th floor, Wawasan Plaza, 88000 Kota Kinabalu, Sabah.
Kuala Lumpur branch: 21 & 23, Jalan PJU 3/49, PJU3, Sunway Damansara Technology Park,
47810 Petaling Jaya, Selangor Darul Ehsan.
The consolidated financial statements of the Company as at and for the financial year ended 31 March 2008 comprise
the Company and its subsidiaries (together referred to as the Group) and the Group’s interest in associates.
The Company is principally engaged in investment holding and provision of management services to its subsidiaries
while the principal activities of the subsidiaries are stated in Note 7 to the financial statements.
The financial statements were approved by the Board of Directors on 29 July 2008.
1. BASIS OF PREPARATION
(a) Statement of compliance
The financial statements of the Group and of the Company have been prepared in accordance with applicable
approved Financial Reporting Standards (FRSs) issued by the Malaysian Accounting Standards Board (MASB),
accounting principles generally accepted in Malaysia and the provisions of the Companies Act, 1965. These
financial statements also comply with the applicable disclosure provisions of the Listing Requirements of
Bursa Securities.
At the beginning of the current financial year, the Group adopted new and revised FRSs which are mandatory
for annual periods beginning on or after 1 October 2006 as follows:
� FRS 117, Leases
Other than the reclassification of leasehold land from property, plant and equipment to prepaid lease
payments (see Notes 32 and 33), the adoption of FRS 117 does not have any significant financial impact
on the Group and on the Company.
� FRS 124, Related Party Disclosures
Other than affecting the form and extent of disclosure of information on related parties and the transactions
and balances therewith, the adoption of FRS 124 does not have an impact on the financial statements of
the Group and of the Company.
The MASB has also issued the following FRSs and Interpretations that are effective for annual periods beginning
after 1 April 2007 or available for early adoption:
FRS / Interpretation Effective date
FRS 107, Cash Flow Statements 1 July 2007
FRS 111, Construction Contracts 1 July 2007
FRS 112, Income Taxes 1 July 2007
FRS 118, Revenue 1 July 2007
FRS 120, Accounting for Government Grants and Disclosure of Government Assistance 1 July 2007
Amendment to FRS 121, The Effect of Changes in Foreign Exchange Rates:
Net Investment in a Foreign Operation 1 July 2007
FRS 134, Interim Financial Reporting 1 July 2007
FRS 137, Provisions, Contingent Liabilities and Contingent Assets 1 July 2007
FRS 139, Financial Instruments: Recognition and Measurement To be announced
IC Interpretation 1, Changes in Existing Decommissioning, Restoration and
Similar Liabilities 1 July 2007
IC Interpretation 2, Members’ Shares in Co-operative Entities and Similar Instruments 1 July 2007
IC Interpretation 5, Rights to Interests arising from Decommissioning, Restoration and
Environmental Rehabilitation Funds 1 July 2007
NOTES TO THE FINANCIAL STATEMENTS
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1. BASIS OF PREPARATION (continued)
(a) Statement of compliance (continued)
FRS / Interpretation Effective date
IC Interpretation 6, Liabilities arising from Participating in a Specific Market
– Waste Electrical and Electronic Equipment 1 July 2007
IC Interpretation 7, Applying the Restatement Approach under FRS 129, Financial
Reporting in Hyperinflationary Economies 1 July 2007
IC Interpretation 8, Scope of FRS 2 1 July 2007
The Group plans to apply FRS 107, FRS 111, FRS 112, FRS 118, FRS 134 and FRS 137 initially for the
annual period beginning on 1 April 2008. The initial application of these standards is not expected to have any
material impact on the financial statements of the Group.
The Group does not currently have a date to adopt FRS 139 as the MASB has yet to announce the effective
date of this standard. The impact of applying FRS 139 on the financial statements upon the first adoption
thereof as required by paragraph 30(b) of FRS 108, Accounting Policies, Changes in Accounting Estimates
and Errors, is not disclosed by virtue of the exemption given by FRS139.103 AB.
FRS 120, Amendment to FRS 121 and IC Interpretations 1, 2, 5, 6, 7 and 8 are not applicable to the Group.
Hence, no further disclosure is warranted.
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis, except for certain classes of property,
plant and equipment which are stated at valuation as explained in Note 2(c)(i).
(c) Functional and presentation currency
These financial statements are presented in Ringgit Malaysia (RM), which is the Company’s functional currency.
(d) Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and in any future periods affected.
There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies
that have a significant effect on the amounts recognised in the financial statements other than those disclosed
in the following notes:
� Note 6, estimation of the recoverable amounts of cash generating units.
� Note 10, valuation of trade receivables.
� Recognition of profit from contract and installation works (see below).
(i) Profit from contract works
The Group recognises revenue and costs in the income statements from contracts based on the
percentage of completion method, measured by reference to the proportion that contract costs incurred
for contract work performed to date bear to the estimated total contract costs.
(ii) Profit from sale and installation of sewage systems
The Group recognises revenue and costs from the sale and installation of sewage systems in proportion
to the stage of completion of the transactions at the balance sheet date. The stage of completion is
measured by reference to the surveys of work performed.
Significant judgement is exercised in determining the stage of completion of the contracts/transactions,
accrual of costs incurred for which claims/billings have yet to be received, estimated total revenue and
costs as well as the recoverability of the carrying amount of the work-in-progress. The total revenue also
includes an estimation of the variations that are recoverable from customers. The Group relies, inter alia,
on the assessment of its experienced project managers when making the estimations and judgments.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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2. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently by the Group entities to the periods presented
in these financial statements.
Certain comparative amounts have been reclassified to conform with the current year’s presentation as well as to
take into account the effect of adopting FRS 117, Leases (see Note 33).
(a) Basis of consolidation
(i) Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the ability to exercise
its power to govern the financial and operating policies of an entity so as to obtain benefits from its
activities. In assessing control, potential voting rights that presently are exercisable are taken into account.
Subsidiaries are consolidated using the purchase method of accounting except for three subsidiaries
(identified in Note 7) which are accounted for using the pooling-of-interests method of accounting. These
three subsidiaries and the Company were entities under common control at the time of their combination
effected on 23 October 2000.
Under the purchase method of accounting, the financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
Under the pooling-of-interests method of accounting, the results of entities or businesses under common
control are accounted for as if the acquisition had occurred at the beginning of the earliest comparative
period presented or, if later, at the date that common control was established. The assets and liabilities
acquired were recognised at the carrying amounts recognised previously in the Group’s controlling
shareholder’s consolidated financial statements. The difference between the cost of acquisition and the
nominal value of the shares acquired together with the share premium are taken to merger reserve. The
other components of equity of the acquired entities are added to the same components within Group equity.
Investment in subsidiaries is stated in the Company’s balance sheet at cost less impairment losses,
unless the investment is classified as held for sale (or included in a disposal group that is classified as
held for sale).
(ii) Associates
Associates are entities in which the Group has significant influence, but not control, over the financial and
operating policies.
Associates are accounted for in the consolidated financial statements using the equity method unless it is
classified as held for sale (or included in a disposal group that is classified as held for sale). The consolidated
financial statements include the Group’s share of the profit and loss of the equity accounted associates,
after adjustments if any, to align the accounting policies with those of the Group, from the date that
significant influence commences until the date that significant influence ceases.
When the Group’s share of losses exceeds its interest in an equity accounted associate, the carrying
amount of that interest (including any long-term investments) is reduced to nil and the recognition of
further losses is discontinued except to the extent that the Group has an obligation to make, or has made,
payments on behalf of the investee.
Investment in associates is stated in the Group’s balance sheet at cost less impairment losses, unless
the investment is classified as held for sale (or included in a disposal group that is classified as held for sale).
(iii) Changes in Group composition
Where a subsidiary issues new equity shares to minority interest for cash consideration and the issue
price has been established at fair value, the reduction in the Group’s interests in the subsidiary is accounted
for as a disposal of equity interest with the corresponding gain or loss recognised in the income statements.
When the Group purchases a subsidiary’s equity shares from minority interest for cash consideration and the
purchase price has been established at fair value, the accretion of the Group’s interests in the subsidiary is
accounted for as a purchase of equity interest for which the acquisition method of accounting is applied.
The Group treats all other changes in group composition as equity transactions between the Group and
its minority shareholders. Any difference between the Group’s share of net assets before and after the
change, and any consideration received or paid, is adjusted to or against Group reserves.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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2. SIGNIFICANT ACCOUNTING POLICIES (continued)
(a) Basis of consolidation (continued)
(iv) Minority interest
Minority interest at the balance sheet date, being the portion of the net identifiable assets of subsidiaries
attributable to equity interests that are not owned by the Company, whether directly or indirectly through
subsidiaries, are presented in the consolidated balance sheets and statements of changes in equity
within equity, separately from equity attributable to the equity shareholders of the Company. Minority
interest in the results of the Group is presented on the face of the consolidated income statements as an
allocation of the total profit or loss for the year between minority interest and the equity shareholders of
the Company.
Where losses applicable to the minority exceed the minority’s interest in the equity of a subsidiary, the
excess, and any further losses applicable to the minority, are charged against the Group’s interest except
to the extent that the minority has a binding obligation to, and is able to, make additional investment to
cover the losses. If the subsidiary subsequently reports profits, the Group’s interest is allocated with all
such profits until the minority’s share of losses previously absorbed by the Group has been recovered.
(v) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements.
Unrealised gains arising from transactions with equity accounted investees are eliminated against the
investment to the extent of the Group’s interest in the investee.
Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is
no evidence of impairment.
(b) Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities
at exchange rates at the transaction dates. Monetary assets and liabilities denominated in foreign currencies
at the balance sheet date are retranslated to their functional currency at the exchange rate at that date.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognised in the income statements.
(ii) Operations denominated in functional currencies other than Ringgit Malaysia
The assets and liabilities of operations in functional currencies other than RM, including goodwill and fair
value adjustments arising on acquisition, are translated to RM at exchange rates at the balance sheet
date. The income and expenses of foreign operations are translated to RM at exchange rates at the
transaction dates.
Foreign currency differences are recognised in translation reserve. On disposal, accumulated translation
differences are recognised in the consolidated income statement as part of the gain or loss on sale.
(c) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are stated at cost/valuation less accumulated depreciation and
accumulated impairment losses, if any.
The Group revalues its property comprising freehold land and buildings every five (5) years and at shorter
intervals whenever the fair value of the revalued assets is expected to differ materially from their carrying
value. Prior to the adoption of FRS 117, Leases, leasehold land (now classified to prepaid lease payments)
was similarly revalued. Additions to land and buildings in between re-valuation are stated at cost.
Surpluses arising from revaluation are dealt with in the revaluation reserve account. Any deficit arising is
offset against the revaluation reserve to the extent of a previous increase for the same property. In all
other cases, a decrease in carrying amount is charged to the income statements.
It is the Group’s policy to state the other property, plant and equipment at cost.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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2. SIGNIFICANT ACCOUNTING POLICIES (continued)
(c) Property, plant and equipment (continued)
(i) Recognition and measurement (continued)
Cost includes expenditures that are directly attributable to the acquisition of asset and any other costs
directly attributable to bringing the asset to working condition for its intended use, and the costs of
dismantling and removing the items and restoring the site on which they are located. The cost of self-
constructed assets also includes the cost of materials and direct labour and, for qualifying assets, borrowing
costs capitalised in accordance with the Group’s accounting policy [see Note 2(t)]. Purchased software
that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When significant parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items (major components) of property, plant and equipment.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised
net within “other income” or “other expenses” respectively in the income statements. When revalued
assets are sold, the amounts included in the revaluation reserve are transferred to retained earnings.
(ii) Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will flow to
the Group and its cost can be measured reliably. The carrying amount of the replaced part is derecognised.
The costs of the day-to-day servicing of property, plant and equipment are recognised in the income
statements as incurred.
(iii) Depreciation
Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated
until the assets are ready for their intended use.
Save for the above, depreciation is recognised in the income statements on a straight-line basis over the
estimated useful life of each part of an item of property, plant and equipment. Leased assets are depreciated
over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will
obtain ownership by the end of the lease term.
Infrastructure incurred on land for oil palm plantation purposes are amortised on a straight-line basis over
25 years upon the maturity of the oil palm plantations.
The estimated useful lives of the other assets for the current and comparative periods are as follows:
Buildings 50 years
Electrical installation and renovation 5 – 10 years
Equipment and tools 3 – 8 years
Infrastructure 20 years
Motor vehicles 5 years
Office equipment, furniture and fittings 3 – 10 years
Plant, machinery and moulds 3 – 10 years
Site equipment 10 years
Depreciation methods, useful lives and residual values are reassessed at the balance sheet date.
(d) Leased assets
(i) Finance lease
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are
classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to
the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial
recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset
[see Note 2(c)].
Minimum lease payments made under finance leases are apportioned between finance expense and the
reduction of the outstanding liability. The finance expense is allocated to each period during the lease
term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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2. SIGNIFICANT ACCOUNTING POLICIES (continued)
(d) Leased assets (continued)
(ii) Operating lease
Other leases are operating leases and the leased assets are not recognised on the Group’s balance
sheet.
Leasehold land that normally has an indefinite economic life and for which title is not expected to pass to
the lessee by the end of the lease term is treated as an operating lease. The payments made on acquiring
a leasehold interest on land are accounted for as prepaid lease payments.
The Group had previously classified a lease of land as finance lease and had recognised the amount of
prepaid lease payments as property within its property, plant and equipment. On the adoption of FRS
117, Leases, the Group now treats such a lease as an operating lease.
The unamortised revalued amount of leasehold land, previously revalued along with freehold land and
buildings [see Note 2(c)(i)], is retained as the surrogate carrying amount of prepaid lease payments in
accordance with the transitional provision in FRS 117.67A when it first adopted FRS 117 during the
current financial year.
Payments made under operating leases are recognised in the income statements on a straight-line basis
over the term of the lease.
(e) Plantation development expenditure
New planting expenditure on planting, upkeep of immature oil palms and borrowing costs incurred during the
pre-maturity period (pre-cropping costs) are capitalised as plantation development expenditure. Upon maturity,
all subsequent maintenance expenditure is charged to the income statement and the capitalised pre-cropping
cost is amortised on a straight-line basis over the expected useful life of oil palms. Replanting expenditure is
similarly capitalised and amortised on the above-mentioned basis.
(f) Intangible asset - goodwill
Goodwill arises on business combination and is measured at cost less any accumulated impairment losses.
For acquisitions prior to 1 January 2006, goodwill represents the excess of the cost of the acquisition over the
Group’s interest in the fair values of the net identifiable assets and liabilities.
With the adoption of FRS 3 beginning 1 January 2006, goodwill represents the excess of the cost of the
acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent
liabilities of the acquiree.
Any excess of the Group’s interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent
liabilities over the cost of acquisition is recognised immediately in the income statement.
Goodwill with indefinite useful lives are tested for impairment annually and whenever there is any indication
that it may be impaired.
(g) Investments in equity securities
Investments in equity securities are recognised initially at fair value plus attributable transaction costs.
Subsequent to initial recognition, investments in non-current equity securities, other than investments in
subsidiaries and associates, are stated at cost less allowance for diminution in value.
Where in the opinion of the Directors, there is a decline other than temporary in the value of non-current
equity securities (other than investments in subsidiaries and associates), an allowance for the diminution in
value is made and recognised as an expense in the financial year in which the decline is identified.
On disposal of an investment, the difference between net disposal proceeds and its carrying amount is
recognised in the income statements.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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2. SIGNIFICANT ACCOUNTING POLICIES (continued)
(g) Investments in equity securities (continued)
All investments in equity securities are accounted for using the settlement date accounting. Settlement date
accounting refers to:
(a) the recognition of an asset on the day it is received by the entity, and
(b) the derecognition of an asset and recognition of any gain or loss on disposal on the date it is delivered.
(h) Inventories
Raw materials, consumables, repair and rehabilitation and construction materials are stated at the lower of
cost and net realisable value with first-in first-out method being the basis of cost. For manufactured/trading
inventories and plantation inventories, cost is determined using the weighted average costs basis.
The cost of inventories includes expenditure incurred in acquiring the inventories and bringing them to their
existing location and condition. In the case of work-in-progress and manufactured inventories, cost includes
an appropriate share of production overheads based on normal operating capacity.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs
of completion and the estimated costs necessary to make the sale.
(i) Receivables
Receivables are initially recognised at their cost when the contractual right to receive cash or other financial
asset from another entity is established.
Subsequent to initial recognition, receivables are stated at cost less allowance for doubtful debts.
Receivables are not held for the purpose of trading.
(j) Contract work-in-progress
Contract work-in-progress represents the gross unbilled amount expected to be collected from customers for
contract work performed to date. It is measured at cost plus profit recognised to date less progress billings
and recognised losses. Cost includes all expenditures related directly to specific projects and an allocation of
fixed and variable overheads [including borrowing costs capitalised in accordance with Note 2(t)] incurred in
the Group’s contract activities based on normal operating capacity.
Contract work-in-progress is presented as part of trade and other receivables in the balance sheet. If payments
received from customers exceed the income recognised, then the difference is shown in trade and other
payables as amount due to contract customers.
(k) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly liquid
investments which have an insignificant risk of changes in value. For the purpose of the cash flow statement,
cash and cash equivalents are presented net of bank overdrafts and pledged deposits.
(l) Impairment of assets
The carrying amounts of assets, other than inventories [refer Note 2(h)], assets arising from contracts [refer
Note 2(j)], deferred tax assets [refer Note 2(r)] and financial assets (excluding investments in subsidiaries
and associates that are not classified as held for sale or included in a disposal group that is classified as held
for sale), are reviewed at each reporting date to determine whether there is any indication of impairment. If
any such indication exists, then the asset’s recoverable amount is estimated. For goodwill that has indefinite
useful lives, the recoverable amount is estimated at each reporting date and whenever there is any indication
of impairment.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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2. SIGNIFICANT ACCOUNTING POLICIES (continued)
(l) Impairment of assets (continued)
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value
less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the
smallest group of assets that generates cash inflows from continuing use that are largely independent of the
cash inflows of other assets or groups of assets (the “cash-generating unit”). Goodwill acquired in a business
combination, for the purpose of impairment testing, is allocated to cash-generating units that are expected to
benefit from the synergies of the combination.
An impairment loss is recognised in the income statements if the carrying amount of an asset or its cash-
generating unit exceeds its recoverable amount, unless if the asset is carried at a revalued amount, in which
case the impairment loss is recognised directly against any revaluation surplus for the asset to the extent that
the impairment loss does not exceed the amount in the revaluation surplus for that same asset. Impairment
losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any
goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (groups
of units) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indications that the losses have
decreased or no longer exist. An impairment loss is reversed if there has been a change in the estimates used
to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation
or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to
the income statements in the year in which the reversals are recognised, unless it reverses an impairment
loss on a revalued asset, in which case it is credited directly to revaluation surplus. Where an impairment loss
on the same revalued asset was previously recognised in the income statements, a reversal of that impairment
loss is also recognised in the income statements.
(m) Share capital
(i) Shares issue expenses
Incremental costs directly attributable to the issue of shares classified as equity are recognised as a
deduction from equity.
(ii) Repurchase of share capital
When share capital recognised as equity is repurchased, the amount of the consideration paid, including
directly attributable costs, is recognised as a deduction from equity and is not re-valued for subsequent
changes in the fair value or market price of the shares. Repurchased shares are classified as treasury
shares and are presented as a deduction from total equity.
When treasury shares are distributed as share dividends, the cost of the treasury shares is applied in the
reduction of the share premium account or distributable reserves, or both.
When treasury shares are reissued by re-sale in the open market, the difference between the sales
consideration net of directly attributable costs and the carrying amount of the treasury shares is recognised
in equity.
(n) Loans and borrowings
Loans and borrowings are stated at amortised cost with any difference between cost and redemption value
being recognised in the income statements over the period of the loans and borrowings using the effective
interest method, other than borrowing costs capitalised in accordance with Note 2(t).
(o) Payables
Payables are measured initially and subsequently at cost. Payables are recognised when there is a contractual
obligation to deliver cash or other financial asset to another entity.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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2. SIGNIFICANT ACCOUNTING POLICIES (continued)
(p) Employee benefits
Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick
leave are measured on an undiscounted basis and are expensed as the related service is provided.
A provision is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing
plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service
provided by the employees and the obligation can be estimated reliably.
The Group’s contributions to statutory pension funds are charged to the income statements in the year to
which they relate. Once the contributions have been paid, the Group has no further payment obligations.
(q) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability.
Contingent liabilities
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be
estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of
economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence
or non-occurrence of one or more future events are also disclosed as contingent liabilities unless the probability
of outflow of economic benefits is remote.
Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies
within its group, the Company considers these to be insurance arrangements, and accounts for them as
such. In this respect, the Company treats the guarantee contract as a contingent liability until such time as it
becomes probable that the Company will be required to make a payment under the guarantee.
(r) Tax expense
Tax expense comprises current and deferred tax. Tax expense is recognised in the income statements except
to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous
years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for the following temporary differences: the initial recognition of goodwill and
the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects
neither accounting nor taxable profit (or tax loss). Deferred tax is measured at the tax rates that are expected
to be applied to the temporary differences when they reverse, based on the laws that have been enacted or
substantively enacted by the balance sheet date.
Deferred tax liability is recognised for all taxable temporary differences.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date
and are reduced by the extent that it is no longer probable that the related tax benefit will be realised.
(s) Revenue recognition
(i) Goods sold
Revenue from the sale of goods is measured at fair value of the consideration received or receivable, net
of returns and allowances, trade discounts and volume rebates. Revenue is recognised when the significant
risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is
probable, the associated costs and possible return of goods can be estimated reliably, and there is no
continuing management involvement with the goods.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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2. SIGNIFICANT ACCOUNTING POLICIES (continued)
(s) Revenue recognition (continued)
(ii) Services rendered
Revenue from the sale and installation of sewage systems are recognised in the income statements in
proportion to the stage of completion of the transactions at the balance sheet date. The stage of completion
is assessed by reference to the surveys of work performed. Where the outcome of the transactions cannot
be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Revenue from provision of sludge treatment and disposal service is recognised in the income statements
as it accrues, based on rates agreed with customers.
(iii) Contract income
As soon as the outcome of a contract can be estimated reliably, contract revenue and expenses are
recognised in the income statements in proportion to the stage of completion of the contract. Contract
revenue includes the initial amount agreed in the contract plus any variations in contract work, claims and
incentive payments to the extent that it is probable that they will result in revenue and can be measured
reliably.
The stage of completion is assessed by reference to the proportion that contract costs incurred for work
performed to date bear to the estimated total contract costs. When the outcome of a contract cannot be
estimated reliably, contract revenue is recognised only to the extent of contract costs incurred that are
likely to be recoverable. An expected loss on a contract is recognised immediately in the income statements.
(iv) Dividend income
Dividend income is recognised when the right to receive payment is established.
(v) Management fee
Management fee is recognised as it accrues at contracted rates.
(vi) Rental income
Rental income is recognised in the income statements on a straight-line basis over the term of the lease.
(t) Interest income and borrowing costs
Interest income is recognised as it accrues, using the effective interest method.
All borrowing costs are recognised in the income statements using the effective interest method in the period
in which they are incurred, except to the extent that they are capitalised as being directly attributable to the
acquisition, construction or production of an asset which necessarily takes a substantial period of time to be
prepared for its intended use.
The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when expenditure
for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare
the asset for its intended use or sale are in progress. Capitalisation of borrowing costs is suspended or
ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or
sale are interrupted or completed.
(u) Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the
profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares
outstanding for the effects of all dilutive potential ordinary shares, which comprise convertible notes and
share options granted to employees.
(v) Segment reporting
A segment is a distinguishable component of the Group that is engaged either in providing products or
services (business segment), or in providing products or services within a particular economic environment
(geographical segment), which is subject to risks and rewards that are different from those of other segments.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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NOTES TO THE FINANCIAL STATEMENTS (continued)
3. PROPERTY, PLANT AND EQUIPMENT
Long-term Short-term
Freehold land leasehold land leasehold land Buildings
Group RM RM RM RM
Cost/Valuation
At 1 April 2006 3,651,045 11,780,000 4,380,000 15,036,859
Effect of adopting FRS 117 - (11,780,000) (4,380,000) -
At 1 April 2006, restated 3,651,045 - - 15,036,859
Acquisition through business
combination (Note 30) - - - 208,695
Additions - - - 222,896
Disposals - - - -
Reclassification - - - 1,071,579
At 31 March 2007/1 April 2007, restated 3,651,045 - - 16,540,029
Additions - - - 2,119,003
Disposals - - - -
Disposal of subsidiaries - - - -
Reclassification - - - -
At 31 March 2008 3,651,045 - - 18,659,032
Representing items at:
Cost - - - 4,212,089
Directors’ valuation 3,651,045 - - 14,446,943
Closing balance 3,651,045 - - 18,659,032
Depreciation
At 1 April 2006 - 260,732 137,582 392,204
Effect of adopting FRS 117 - (260,732) (137,582) -
At 1 April 2006, restated - - - 392,204
Depreciation for the financial year - - - 320,878
Disposals - - - -
Reclassification - - - 13,553
At 31 March 2007/1 April 2007, restated - - - 726,635
Depreciation for the financial year - - - 346,299
Disposals - - - -
Disposal of subsidiaries - - - -
Reclassification - - - -
At 31 March 2008 - - - 1,072,934
Carrying amounts
At 1 April 2006, restated 3,651,045 - - 14,644,655
At 31 March 2007/1 April 2007, restated 3,651,045 - - 15,813,394
At 31 March 2008 3,651,045 - - 17,586,098
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NOTES TO THE FINANCIAL STATEMENTS (continued)
Plant, machinery and moulds
Office equipment,
Outright purchase Under finance lease furniture and fittings Equipment and tools Subtotal
RM RM RM RM RM
26,564,599 793,795 5,307,616 2,643,479 70,157,393
- - - - (16,160,000)
26,564,599 793,795 5,307,616 2,643,479 53,997,393
- - - - 208,695
2,477,020 - 1,488,008 176,452 4,364,376
(5,371,532) (793,795) (38,236) (459,077) (6,662,640)
424,560 - - - 1,496,139
24,094,647 - 6,757,388 2,360,854 53,403,963
3,077,136 62,500 874,038 549,439 6,682,116
(578,820) - (97,716) (37,844) (714,380)
- - (765,078) - (765,078)
499,768 - (102,737) (165,836) 231,195
27,092,731 62,500 6,665,895 2,706,613 58,837,816
27,092,731 62,500 6,665,895 2,706,613 40,739,828
- - - - 18,097,988
27,092,731 62,500 6,665,895 2,706,613 58,837,816
16,124,238 39,690 2,746,693 1,667,311 21,368,450
- - - - (398,314)
16,124,238 39,690 2,746,693 1,667,311 20,970,136
2,245,275 - 926,950 198,756 3,691,859
(4,617,688) (39,690) (24,600) (424,063) (5,106,041)
71,081 - (34) (71,047) 13,553
13,822,906 - 3,649,009 1,370,957 19,569,507
2,312,880 5,058 634,861 446,248 3,745,346
(345,312) - (82,403) (10,296) (438,011)
- - (115,816) - (115,816)
(34) - (241,982) - (242,016)
15,790,440 5,058 3,843,669 1,806,909 22,519,010
10,440,361 754,105 2,560,923 976,168 33,027,257
10,271,741 - 3,108,379 989,897 33,834,456
11,302,291 57,442 2,822,226 899,704 36,318,806
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NOTES TO THE FINANCIAL STATEMENTS (continued)
3. PROPERTY, PLANT AND EQUIPMENT (continued)
Motor vehicles
Group (continued) Subtotal Outright purchase Under finance lease
RM RM RM
Cost/Valuation
At 1 April 2006 70,157,393 5,124,265 741,375
Effect of adopting FRS 117 (16,160,000) - -
At 1 April 2006, restated 53,997,393 5,124,265 741,375
Acquisition through
business combination (Note 30) 208,695 - -
Additions 4,364,376 1,039,673 -
Disposals (6,662,640) (355,997) (65,000)
Reclassification 1,496,139 - -
At 31 March 2007/1 April 2007, restated 53,403,963 5,807,941 676,375
Additions 6,682,116 1,768,677 386,648
Disposals (714,380) (731,629) -
Disposal of subsidiaries (765,078) - -
Reclassification 231,195 (52,541) (129,400)
At 31 March 2008 58,837,816 6,792,448 933,623
Representing items at:
Cost 40,739,828 6,792,448 933,623
Directors’ valuation 18,097,988 - -
Closing balance 58,837,816 6,792,448 933,623
Depreciation
At 1 April 2006 21,368,450 3,383,839 462,656
Effect of adopting FRS 117 (398,314) - -
At 1 April 2006, restated 20,970,136 3,383,839 462,656
Depreciation for the financial year 3,691,859 632,670 101,046
Disposals (5,106,041) (239,496) (58,500)
Reclassification 13,553 - -
At 31 March 2007/1 April 2007, restated 19,569,507 3,777,013 505,202
Depreciation for the financial year 3,745,346 784,442 98,716
Disposals (438,011) (440,224) -
Disposal of subsidiaries (115,816) - -
Reclassification (242,016) (181,941) -
At 31 March 2008 22,519,010 3,939,290 603,918
Carrying amounts
At 1 April 2006, restated 33,027,257 1,740,426 278,719
At 31 March 2007/ 1 April 2007, restated 33,834,456 2,030,928 171,173
At 31 March 2008 36,318,806 2,853,158 329,705
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NOTES TO THE FINANCIAL STATEMENTS (continued)
Electrical installation Assets under
and renovation Site equipment Infrastructure construction Total
RM RM RM RM RM
1,452,269 1,469,956 3,212,924 58,549 82,216,731
- - - - (16,160,000)
1,452,269 1,469,956 3,212,924 58,549 66,056,731
- - - - 208,695
72,655 660 275,754 1,959,925 7,713,043
- - - (9,183) (7,092,820)
- - 117,162 (1,613,301) -
1,524,924 1,470,616 3,605,840 395,990 66,885,649
149,722 150,998 291,715 1,509,885 10,939,761
(104,265) - - (3,036) (1,553,310)
- - - - (765,078)
76,136 - - (566,556) (441,166)
1,646,517 1,621,614 3,897,555 1,336,283 75,065,856
1,646,517 1,621,614 3,897,555 1,336,283 56,967,868
- - - - 18,097,988
1,646,517 1,621,614 3,897,555 1,336,283 75,065,856
955,015 632,755 730,497 - 27,533,212
- - - - (398,314)
955,015 632,755 730,497 - 27,134,898
229,440 146,996 170,686 - 4,972,697
- - - - (5,404,037)
- - - - 13,553
1,184,455 779,751 901,183 - 26,717,111
171,221 159,645 188,469 - 5,147,839
(46,426) - - - (924,661)
- - - - (115,816)
(41,529) - - - (465,486)
1,267,721 939,396 1,089,652 - 30,358,987
497,254 837,201 2,482,427 58,549 38,921,833
340,469 690,865 2,704,657 395,990 40,168,538
378,796 682,218 2,807,903 1,336,283 44,706,869
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3. PROPERTY, PLANT AND EQUIPMENT (continued)
Office
equipment,
furniture Motor Assets under
Buildings and fittings vehicles Renovation construction Total
Company RM RM RM RM RM RM
Cost
At 1 April 2006 - 1,487,212 1,055,959 1,158,657 - 3,701,828
Additions - 169,222 155,001 61,710 339,044 724,977
Disposals - (11,751) - - - (11,751)
At 31 March 2007/1 April 2007 - 1,644,683 1,210,960 1,220,367 339,044 4,415,054
Additions 1,772,000 297,320 167,616 108,241 123,498 2,468,675
Disposals - (14,822) (447,529) (102,715) - (565,066)
Reclassification - 114,959 - 117,665 (232,624) -
At 31 March 2008 1,772,000 2,042,140 931,047 1,343,558 229,918 6,318,663
Depreciation
At 1 April 2006 - 741,249 658,818 702,223 - 2,102,290
Depreciation for the financial year - 301,382 184,058 220,981 - 706,421
Disposals - (8,317) - - - (8,317)
At 31 March 2007/1 April 2007 - 1,034,314 842,876 923,204 - 2,800,394
Depreciation for the financial year 4,430 303,126 132,012 158,616 - 598,184
Disposals - (8,013) (305,946) (45,367) - (359,326)
At 31 March 2008 4,430 1,329,427 668,942 1,036,453 - 3,039,252
Carrying amounts
At 1 April 2006 - 745,963 397,141 456,434 - 1,599,538
At 31 March 2007/1 April 2007 - 610,369 368,084 297,163 339,044 1,614,660
At 31 March 2008 1,767,570 712,713 262,105 307,105 229,918 3,279,411
3.1 Property, plant and equipment under the revaluation model
The Group’s freehold land and buildings (including buildings on leasehold land) were revalued during 2005
by independent valuers, using an open market value method. Additions to the revalued assets subsequent to
the last revaluation exercise are stated at cost in the financial statements.
Had the freehold land and buildings been carried under the cost model, their carrying amounts, net of
accumulated depreciation where applicable, that would have been included in the financial statements at the
end of the financial year are as follows:
Group
2008 2007
RM RM
Carrying amounts
Freehold land 4,323,737 4,323,737
Buildings 13,885,520 14,215,092
18,209,257 18,538,829
3.2 Assets under construction
This comprises infrastructure and buildings under construction as well as software under installation. Included
in the assets under construction are rental of machinery of RM227,442 (2007: Nil) and employee benefits of
RM32,693 (2007: Nil).
NOTES TO THE FINANCIAL STATEMENTS (continued)
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3. PROPERTY, PLANT AND EQUIPMENT (continued)
3.3 Allocation of depreciation
Depreciation for the financial year is allocated as follows:
Group Company
2008 2007 2008 2007
RM RM RM RM
Income statements (Note 20) 4,621,832 4,589,972 598,184 706,421
Capitalised in:
- plantation development expenditure (Note 5) 158,407 - - -
- Amount due from contract customers (Note 10.4) 367,600 382,725 - -
5,147,839 4,972,697 598,184 706,421
4. PREPAID LEASE PAYMENTS
Leasehold land
Unexpired term Unexpired term
less than 50 years more than 50 years Total
Group RM RM RM
Cost/Valuation
At 1 April 2006 - - -
Effect of adopting FRS 117 4,380,000 11,780,000 16,160,000
At 1 April 2006, restated 4,380,000 11,780,000 16,160,000
Additions - 480,000 480,000
Acquisitions through business combinations
(Note 30) 956,305 30,300,000 31,256,305
At 31 March 2007/1 April 2007, restated 5,336,305 42,560,000 47,896,305
Additions - 3,943,166 3,943,166
At 31 March 2008 5,336,305 46,503,166 51,839,471
Representing items at:
Cost 956,305 34,723,166 35,679,471
Directors’ valuation 4,380,000 11,780,000 16,160,000
At 31 March 2008 5,336,305 46,503,166 51,839,471
Amortisation
At 1 April 2006 - - -
Effect of adopting FRS 117 137,582 260,732 398,314
At 1 April 2006, restated 137,582 260,732 398,314
Amortisation for the financial year 119,136 217,268 336,404
Reclassification - (13,553) (13,553)
At 31 March 2007/1 April 2007, restated 256,718 464,447 721,165
Amortisation for the financial year 138,768 305,627 444,395
At 31 March 2008 395,486 770,074 1,165,560
Carrying amounts
At 1 April 2006, restated 4,242,418 11,519,268 15,761,686
At 31 March 2007/1 April 2007, restated 5,079,587 42,095,553 47,175,140
At 31 March 2008 4,940,819 45,733,092 50,673,911
NOTES TO THE FINANCIAL STATEMENTS (continued)
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4. PREPAID LEASE PAYMENTS (continued)
Leasehold land
Unexpired term
more than 50 years
Company RM
Cost
At 1 April 2006 and 31 March 2007/1 April 2007 -
Additions 1,728,000
At 31 March 2008 1,728,000
Amortisation
At 1 April 2006 and 31 March 2007/1 April 2007 -
Amortisation for the financial year 4,408
At 31 March 2008 4,408
Carrying amounts
At 1 April 2006 and 31 March 2007/1 April 2007 -
At 31 March 2008 1,723,592
Allocation of amortisation
Amortisation for the financial year is allocated as follows:
Group Company
2008 2007 2008 2007
RM RM RM RM
Income statements (Note 20) 368,741 336,404 4,408 -
Capitalisation in plantation development
expenditure (Note 5) 75,654 - - -
444,395 336,404 4,408 -
5. PLANTATION DEVELOPMENT EXPENDITURE – GROUP
Oil palm plantation
development expenditure
RM
Cost and carrying amounts
At 1 April 2006 and 31 March 2007/1 April 2007 -
Additions 2,133,706
At 31 March 2008 2,133,706
Additions to plantation development expenditure incurred during the current financial year include:
2008
RM
Amortisation of prepaid lease payments (Note 4) 75,654
Depreciation of property, plant and equipment (Note 3) 158,407
Personnel expenses (including key management personnel)
- Contributions to the Employees Provident Fund 24,820
- Wages, salaries and others 236,072
Rental of premises 19,230
NOTES TO THE FINANCIAL STATEMENTS (continued)
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6. INTANGIBLE ASSET – GROUP
Goodwill
RM
Cost
At 1 April 2006 1,210,925
Acquisition through business combinations (Note 30) 83,414
At 31 March 2007/1 April 2007 1,294,339
Acquisition of minority interest (Note 30) 2,623,514
At 31 March 2008 3,917,853
Amortisation and impairment loss
At 1 April 2006 and 31 March 2007/1 April 2007 91,497
Write off (Note 20) 71,642
At 31 March 2008 163,139
Carrying amounts
At 1 April 2006 1,119,428
At 31 March 2007/1 April 2007 1,202,842
At 31 March 2008 3,754,714
Impairment testing for cash-generating units containing goodwill
For the purpose of impairment testing, goodwill is allocated to the cash generating units (“CGUs”) acquired which
represent the lowest level within the Group at which the goodwill is monitored for internal management purposes.
The aggregate carrying amounts of goodwill allocated to the CGUs are as follows:
Group
2008 2007
RM RM
CGU 1 995,657 995,657
CGU 2 1,843,790 11,772
CGU 3 791,496 -
Other CGUs 195,413 195,413
Goodwill written off (Note 20) (71,642) -
123,771 195,413
3,754,714 1,202,842
The recoverable amount for the above CGUs is based on value in use calculations and is determined by discounting
the future cash flows expected to be generated from the continuing use of the CGUs and is based on the following key
assumptions:
CGU 1 and CGU 2 – Specific assumptions
(a) Existing on-going contracts (including those anticipated to be secured within the next twelve months) will commence
and progress as scheduled in the subsidiaries’ operational plans. There will be no significant deviations from the
expected physical completion and hand over dates for all present and future contracts.
(b) Contract revenue sum will remain at the value stipulated in the contracts, and will not be affected to a material
extent by variation orders and/or changes in market conditions.
(c) Sub-contractor costs as well as raw material prices will be maintained at the projected levels.
(d) Advance payments from customers will be received as projected for working capital purposes. These payments
will be progressively deducted against the future claims to customers.
(e) For CGU 2, there will be no major change in the present legislation for its foreign operation. Foreign currency
exchange rates will remain at the current levels.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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6. INTANGIBLE ASSET – GROUP (continued)
Impairment testing for cash-generating units containing goodwill (continued)
CGU 3 - Specific assumptions
(a) Sales of services are projected to grow by 4% per annum for 2009. The rate of service charge will be revised
upwards by 10% once in every five years in accordance with the service contract.
(b) Expenses are projected to increase at 3% per annum.
General assumptions applicable to all CGUs
(a) Collections from trade receivables and settlement of trade payables will be made in accordance with the current
credit arrangements and policies.
(b) Capital expenditure on property, plant and equipment will be implemented and incurred on schedule.
(c) Repayment of borrowings and interest will be made in accordance with agreed repayment schedules.
(d) The corporate income tax rate is assumed to be 25% for the projection years.
(e) Effective borrowing rates of the Group are used to determine the discounted recoverable amount of the CGUs.
The values assigned to the key assumptions represent management’s assessment of future trends in the industry and
are based on historical data from both external sources and internal sources.
Sensitivity to changes in assumptions
The above estimates are particularly sensitive to fluctuations of material prices and contract value. With 5% and 10%
downward variations in the projected prices and contract value, the projected recoverable amounts of the CGUs
acquired are still greater than their carrying amounts.
7. INVESTMENT IN SUBSIDIARIES
Company
2008 2007
RM RM
Unquoted shares, at cost 37,137,040 37,409,045
Impairment loss (Note 20) (8,543,297) -
28,593,743 37,409,045
Details of the subsidiaries, all of which are incorporated in Malaysia unless otherwise stated, and the Company’s
interests therein are as follows:
Effective ownership interest
Subsidiaries Principal activities 2008 2007
% %
Weida Integrated Industries Manufacture of high density polyethylene (“HDPE”) 100.00 100.00
Sdn. Bhd. (“WII”) # engineering products
Weida Works Sdn. Bhd. # Construction of water supply and other specialised 100.00 100.00
systems involving the use of HDPE engineering
products, construction and financing the construction
of telecommunication towers
Weida Resources Trading of HDPE engineering products, fittings and 100.00 100.00
Sdn. Bhd. # other engineering products
Weida Water Sdn. Bhd. Trading of water storage tanks, chemical tanks, 100.00 100.00
fittings, other specialised technical and engineering
products, and the provision of specialised
installation services for these products
Weidaline Sdn. Bhd. Trading of HDPE pipes, other specialised technical 100.00 100.00
and engineering products, and the provision of
specialised installation services for these products
NOTES TO THE FINANCIAL STATEMENTS (continued)
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7. INVESTMENT IN SUBSIDIARIES (continued)
Effective ownership interest
Subsidiaries Principal activities 2008 2007
% %
Weida Agrotech Sdn. Bhd. Trading of HDPE agriculture products, other 100.00 100.00
specialised technical and engineering products,
and the provision of specialised installation services
for these products
Weida Dagangan Sdn. Bhd. Trading of HDPE engineering products, other 100.00 100.00
specialised technical and engineering products, and
the provision of specialised installation services for
these products
Alamsar Sdn. Bhd. Provision of construction and engineering services 100.00 100.00
Weidasar Engineering Construction and installation of sewage treatment 64.00 51.00
Sdn. Bhd. plants and bulk storage tanks
Weidaya Sdn. Bhd. Trading of HDPE engineering products and the 70.00 70.00
provision of specialised installation services for
these products
Weida Marketing Sdn. Bhd. Trading of HDPE engineering products and the 51.00 51.00
provision of specialised installation services for
these products
Weida Environmental Provision of sewage treatment services comprising 51.00 51.00
Technology Sdn. Bhd. the design, supply and installation, commissioning
(“WET”) and maintenance of sewage systems
Bumi Suria Ventures Cultivation of oil palm plantation 51.43 51.43
Sdn. Bhd.
Weida Water (ADRA) Construction and installation of water and sewage 51.00 -
Sdn. Bhd. plants
Weida (B) Sdn. Bhd. ^ Trading of HDPE engineering products 99.99 -
Weida Engineering Sdn. Bhd. Provision of construction and engineering services - ** 51.00
Weida Industrial Systems Manufacturing and trading of HDPE engineering - * 51.00
Sdn. Bhd. construction materials
Subsidiary of WII
Greenyard Corporation Letting of investment property 100.00 100.00
Sdn. Bhd.
Subsidiaries of WET
Sar-Alam Indah Sdn. Bhd. Provision of treatment and disposal of sludge 29.58 26.01
services
Renexus-Weida Sdn. Bhd. Construction and installation of treatment plants 40.29 26.01
UTIC Services Sdn. Bhd. Provision of underground mapping of buried utilities, 26.01 26.01
(“UTIC”) closed circuit television survey and investigation
and rehabilitation of underground sewer and pipeline
networks and storm water culverts
NOTES TO THE FINANCIAL STATEMENTS (continued)
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7. INVESTMENT IN SUBSIDIARIES (continued)
Effective ownership interest
Subsidiaries Principal activities 2008 2007
% %
Subsidiary of UTIC
UTIC Industries Sdn. Bhd. Manufacture and trading of synthetic and composites 26.01 -
liners for sewerage, waterpipe application and
pipeline rehabilitation
# Consolidated using the pooling-of-interests method of accounting.
** Partially disposed of as at 31 March 2008 and classified as other investment as the Group has no significant influence over the
financial and operating policies of the investee company after the disposal (Note 9).
^ Incorporated in Brunei Darulssalam and audited by member firm of KPMG International.
* Disposed of on 27 March 2008 and audited by a firm of chartered accountants other than KPMG.
8. INVESTMENT IN ASSOCIATES
Group
2008 2007
RM RM
Unquoted shares, at cost 52,750 372,750
Impairment loss (Note 20) (52,750) (3,749)
- 369,001
Share of post-acquisition reserves
-* 13,263
- 382,264
* The results of operations of the associates have not been equity accounted for. Had the results of the associates been equity
accounted for, the share of their loss therein attributable to the Group will be limited to the impairment loss on the investment of
RM52,750 that has already been made.
Details of the associates, which are incorporated in Malaysia, are as follows:
Effective ownership interest
Associates Principal activities 2008 2007
% %
Weidasar Sdn. Bhd. Manufacture of HDPE engineering products, - ^ 40^
general trading and project management
Weida-Sar Ventures Sdn. Bhd. Dormant 25@ 25@
UTIC Services Selatan Sdn. Bhd. Dormant - # 13#
^ Held through a subsidiary, WII.
The associate was disposed of during the current financial year for a cash consideration of RM384,000. Loss arising from the
disposal to the Group is RM528,910 (see Note 20).@ Held through a subsidiary, Weidasar Engineering Sdn. Bhd..# Held through an indirect subsidiary, UTIC Services Sdn. Bhd..
The associate has been struck off from the Register of Companies by the Commissioner of Companies, Malaysia in April 2007.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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8. INVESTMENT IN ASSOCIATES (continued)
Summary of financial information on associates
Revenue Loss Total assets Total liabilities
(100%) (100%) (100%) (100%)
RM RM RM RM
2008
Weida-Sar Ventures Sdn. Bhd. - (9,997) 95,218 7,706
2007
Weidasar Sdn. Bhd. 12,567,185 (21,082) 8,111,813 7,282,286
Weida- Sar Ventures Sdn. Bhd. - (3,081) 97,224 1,797
UTIC Services Selatan Sdn. Bhd. - - 8,148 -
12,567,185 (24,163) 8,217,185 7,284,083
9. OTHER INVESTMENTS
Group Company
2008 2007 2008 2007
RM RM RM RM
Quoted shares in Malaysia, at cost 13,144,860 76,190 13,144,860 76,190
Less: Allowance for diminution
in value (Note 20) (2,148,417) - (2,148,417) -
10,996,443 76,190 10,996,443 76,190
Unquoted shares, at cost 917,473 450,000 150,000 -
11,913,916 526,190 11,146,443 76,190
Unquoted shares include an investment in the following company (previously a subsidiary; see Note 7):
Effective interest
Company Principal activity 2008 2007
% %
Weida Engineering Sdn. Bhd. Provision of construction and engineering services 30.00 * -
* The above company is however not treated as an associate as the Group has no significant influence over the financial and
operating policies of the investee company.
The market value of the quoted shares is shown in Note 28.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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NOTES TO THE FINANCIAL STATEMENTS (continued)
10. TRADE AND OTHER RECEIVABLES
Group Company
2008 2007 2008 2007
RM RM RM RM
Non-current
Trade
Contract receivable (Note 10.2) 2,428,104 47,344,566 - -
Trade receivable 5,642,880 - - -
8,070,984 47,344,566 - -
Non-trade
Subsidiaries - - 36,595,214 14,700,420
Total 8,070,984 47,344,566 36,595,214 14,700,420
Current
Trade
Trade receivables 35,472,195 31,140,540 - -
Less: Allowance for doubtful debts (6,400,315) (5,871,282) - -
29,071,880 25,269,258 - -
Contract receivable (Note 10.2) 91,574,310 5,352,841 - -
Associates - 6,508,862 - -
Amount due from contract customers (Note 10.4) 13,828,804 5,456,839 - -
134,474,994 42,587,800 - -
Non-trade
Subsidiaries - - 108,936,576 60,897,924
Other receivables 4,544,807 708,128 517,739 895,780
Deposits (Note 10.5) 41,253,368 1,611,490 5,123,299 470,360
Prepayments 6,022,562 11,103,298 13,033 31,500
51,820,737 13,422,916 114,590,647 62,295,564
Total 186,295,731 56,010,716 114,590,647 62,295,564
10.1 Assessment of doubtful debts
The Group’s normal trade credit term ranges from 30 to 90 days. The main collectibility risk of trade receivables
is customer insolvencies. Management determines allowance for doubtful receivables based on a systematic,
on-going review and evaluation performed as part of its credit risk evaluation process. These include
asessment of customers’ past payment records, sales level and financial standing. The evaluation is however
inherently judgemental and requires material estimates, including the amounts and timing of future cash
flows expected to be received, which may be susceptible to significant change.
Specific allowance is made for debts which are considered as doubtful when the trade accounts become
inactive or when the amounts are under litigation. Write-off of debts against specific allowance is made only
when avenues of recovery have been exhausted and the amounts are considered to be irrecoverable.
Although management considers the allowance for doubtful receivables to be adequate as at 31 March
2008 based on the information currently available, additional allowance may be necessary when information
obtained subsequent to balance sheet date indicates a change in the expected future cash inflows from the
debtors and/or change in economic and other events/conditions.
During the financial year, doubtful debts written off against allowance for doubtful debts made previously
amounted to RM333,635 (2007: RM826,340).
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NOTES TO THE FINANCIAL STATEMENTS (continued)
10. TRADE AND OTHER RECEIVABLES (continued)
10.2 Contract receivable relates to the construction of telecommunication towers projects entered into by a
subsidiary. Pursuant to the agreement entered into between the subsidiary and its contract customer, the
contract receivable is payable over a period up to 10 years commencing from year 2007 onwards.
Subsequent to the financial year end, the said subsidiary sold off and received payment for RM84,290,000
of the contract receivable.
The contract receivable bears interest at 16.6% (2007: 9.5%) per annum and is expected to be collected as
follows:
Group
2008 2007
RM RM
Due within one year 91,574,310 5,352,841
Due after one year 2,428,104 47,344,566
94,002,414 52,697,407
10.3 The non-current portion of trade receivable represents an amount due from a former associate of the Group
(disposed of during the current financial year). The amount is secured by a first fixed and floating charge
over the company’s assets and bears interest at 6.00% (2007: Nil) per annum. The amount is not subject to
a fixed term of repayment but is repayable in full by December 2012.
10.4 Amount due from contract customers
Group
2008 2007
RM RM
Value of works performed to-date 179,470,861 107,379,902
Progress billings (168,096,088) (105,972,928)
11,374,773 1,406,974
Amount due to contract customers reclassified
to trade and other payables (Note 18) 2,454,031 4,049,865
Amount due from contract customers 13,828,804 5,456,839
Additions to the value of works performed to-date include:
Group
2008 2007
RM RM
Depreciation of property, plant and equipment (Note 3) 367,600 382,725
Personnel expenses
- Contributions to the Employees Provident Fund 28,564 -
- Wages, salaries and others 3,186,431 -
Other interest expense 1,421,862 -
Unrealised foreign exchange loss 127 -
Rental of equipment 90,978 -
Rental of premises 598,465 -
10.5 Deposits of the Group include an amount of RM35,291,159 (2007: Nil) paid for the purchase of materials,
machinery and equipment, partly funded by the advance payments received from a contract customer (see
Note 18.3). Included in deposits is also an amount of RM4,953,000 paid for the acquisition of shares in
Maju Warisanmas Sdn. Bhd. during the financial year (see Note 31.1).
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NOTES TO THE FINANCIAL STATEMENTS (continued)
10. TRADE AND OTHER RECEIVABLES (continued)
10.6 Trade receivables of the Group include retention sums of RM683,778 (2007: RM2,193,155).
10.7 The amount due from subsidiaries is unsecured and bears interest at 6.00% (2007: 6.00%) per annum.
The non-current amount due from subsidiaries is not repayable during the next twelve months. Nevertheless,
the subsidiaries may make repayments so long as such repayments do not adversely affect the ability of the
subsidiaries to meet their liabilities when due.
10.8 Trade and other receivables denominated in currencies other than the functional currency comprise the
following:
Group
2008 2007
RM RM
Yuan Renminbi (RMB) 2,848,917 -
Euro 46,461,384 -
Brunei Dollar (BND) 71,032 -
49,381,333 -
11. DEFERRED TAX
Deferred tax assets and liabilities are attributable to the following:
Assets Liabilities Net
2008 2007 2008 2007 2008 2007
Group RM RM RM RM RM RM
Allowance for doubtful debts 72,000 1,250,000 - - 72,000 1,250,000
Revaluation reserves - - (2,692,000) (2,791,000) (2,692,000) (2,791,000)
Property, plant and equipment
and prepaid lease payments 9,000 - (10,016,000) (9,563,000) (10,007,000) (9,563,000)
Capital allowance carry-forwards - 325,000 - - - 325,000
Tax loss carry-forwards 347,000 579,000 - - 347,000 579,000
Tax assets/(liabilities) 428,000 2,154,000 (12,708,000) (12,354,000) (12,280,000) (10,200,000)
Set off of tax (21,000) (73,000) 21,000 73,000 - -
Net tax assets/(liabilities) 407,000 2,081,000 (12,687,000) (12,281,000) (12,280,000) (10,200,000)
Assets/(Liabilities)
2008 2007
Company RM RM
Capital allowance carry-forwards - 310,000
Property, plant and equipment (98,000) (1,000)
Tax (liabilities)/assets (98,000) 309,000
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NOTES TO THE FINANCIAL STATEMENTS (continued)
11
.D
EF
ER
RE
D T
AX
(co
ntin
ue
d)
Mo
ve
me
nts
in
te
mp
ora
ry d
iffe
ren
ce
s d
uri
ng
th
e y
ea
r a
re a
s f
ollo
ws:
Acq
uir
ed
Reco
gn
ised
in
thro
ug
h b
usin
ess
At
Reco
gn
ised
in
Dis
po
sal o
f
At
1.4
.2006
inco
me s
tate
men
tco
mb
inati
on
s31.3
.2007/1
.4.2
007
inco
me s
tate
men
tsu
bsid
iari
es
At
31.3
.2008
Gro
up
RM
RM
RM
RM
RM
RM
RM
Allo
wance for
doubtful debts
1,4
89,0
00
(239,0
00)
-1,2
50,0
00
(1,1
78,0
00)
-72,0
00
Revalu
ation r
eserv
es
(3,2
16,0
00)
425,0
00
-(2
,791,0
00)
99,0
00
-(2
,692,0
00)
Pro
pert
y, p
lant and e
quip
ment and
pre
paid
lease p
aym
ents
(3,1
18,0
00)
4
70,0
00
(6,9
15,0
00)
( 9,5
63,0
00)
(452,0
00)
8,0
00
(10,0
07,0
00)
Capital allo
wance c
arr
y-f
orw
ard
s385,0
00
(60,0
00)
-325,0
00
(325,0
00)
--
Tax loss c
arr
y-f
orw
ard
s337,0
00
242,0
00
-579,0
00
(232,0
00)
-347,0
00
(4,1
23,0
00)
838,0
00
(6,9
15,0
00)
(10,2
00,0
00)
(2,0
88,0
00)
8,0
00
(12,2
80,0
00)
(Note
22)
(Note
30)
(Note
22)
Co
mp
an
y
Pro
pert
y, p
lant and e
quip
ment and
pre
paid
lease p
aym
ents
2,0
00
(3,0
00)
-(1
,000)
(97,0
00)
-(9
8,0
00)
Capital allo
wance c
arr
y-f
orw
ard
s375,0
00
(65,0
00)
-310,0
00
(310,0
00)
--
Div
idends r
eceiv
able
(1,5
68,0
00)
1,5
68,0
00
--
--
-
(1,1
91,0
00)
1,5
00,0
00
-309,0
00
(407,0
00)
-(9
8,0
00)
(Note
22)
(Note
22)
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NOTES TO THE FINANCIAL STATEMENTS (continued)
11. DEFERRED TAX (continued)
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following temporary differences:
Group
2008 2007
RM RM
Allowance for doubtful debts - 40,000
Property, plant and equipment (1,811,000) (256,000)
Capital allowance carry-forwards 2,293,000 285,000
Tax loss carry-forwards 2,728,000 2,042,000
3,210,000 2,111,000
Deferred tax assets of RM803,000 (2007: RM549,000) have not been recognised in respect of the above items
because it is not probable that future taxable profit will be available against which the affected subsidiaries can utilise
the benefits therefrom.
Unabsorbed capital allowance carry-forwards and unutilised tax loss carry-forwards do not expire under the current
tax legislation except that in the case of a dormant company, such allowances and losses will not be available to the
company if there is a substantial change of 50% or more in the shareholdings thereof.
12. INVENTORIES
Group
2008 2007
RM RM
At cost:
Construction materials 642,376 192,850
Consumables 344,582 679,773
Raw materials 14,961,035 14,198,360
Manufactured/Trading inventories 14,553,542 11,084,267
Work-in-progress - 356,099
Repair and rehabilitation materials 140,339 310,647
Plantation inventories 954,117 -
31,595,991 26,821,996
At net realisable value:
Manufactured/Trading inventories 206,672 1,064,165
31,802,663 27,886,161
13. PROPERTIES HELD FOR RESALE - GROUP
Buildings
RM
At cost
At 1 April 2006 725,746
Disposals (284,924)
At 31 March 2007/1 April 2007 440,822
Disposals (118,500)
At 31 March 2008 322,322
Properties held for resale represent properties received in exchange for settlement of trade receivables, and are held
with a view to realisation in cash.
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NOTES TO THE FINANCIAL STATEMENTS (continued)
14. CASH AND BANK BALANCES
Group Company
2008 2007 2008 2007
RM RM RM RM
Fixed deposits placed with licensed banks 18,837,953 2,852,856 200,000 -
Cash and bank balances 18,770,692 15,476,347 5,313,887 409,851
37,608,645 18,329,203 5,513,887 409,851
Included in fixed deposits of the Group as at 31 March 2007 was an amount of RM412,400 pledged to licensed banks
to secure the bank guarantee facilities granted to certain subsidiaries. The deposits have been fully discharged during
the current financial year.
Cash and bank balances denominated in currencies other than the functional currency comprise the following:
Group
2008 2007
RM RM
Syrian Pounds 16,978,944 -
Euro 4,533,266 -
Brunei Dollar (BND) 52,783 -
21,564,993 -
15. SHARE CAPITAL
Group and Company
Amount Number of shares
2008 2007 2008 2007
RM RM
Authorised:
Ordinary shares of RM0.50 each 100,000,000 100,000,000 200,000,000 200,000,000
Issued and fully paid:
Ordinary shares of RM0.50 each
Opening and closing balances 66,666,666 66,666,666 133,333,332 133,333,332
16. RESERVES
Group Company
2008 2007 2008 2007
RM RM RM RM
Revaluation reserve 7,913,350 8,092,683 - -
Merger deficit (16,983,045) (16,983,045) - -
Translation reserve (38,135) - - -
Other reserve 150,000 150,000 - -
Retained earnings/(Accumulated losses) 68,391,477 61,295,553 (298,476) 5,999,947
Treasury shares (4,481,639) (1,562,641) (4,481,639) (1,562,641)
54,952,008 50,992,550 (4,780,115) 4,437,306
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NOTES TO THE FINANCIAL STATEMENTS (continued)
16. RESERVES (continued)
Revaluation reserve
This comprises surplus from the revaluation of freehold land, buildings and prepaid lease payments (see Notes 3 and
4) in prior years. The surplus arising from the revaluation is released to retained earnings over the estimated useful
lives of the revalued assets commencing in the year the valuation exercise was carried out.
Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements
of foreign operations.
Treasury shares
The shareholders of the Company, at an Annual General Meeting held on 27 September 2007, approved the Company’s
plan to repurchase its own shares. The Directors of the Company are committed to enhance the value of the Company
to its shareholders and believe that the repurchase plan can be applied in the best interest of the Company and its
shareholders.
During the financial year, the Company purchased 3,953,000 (2007: 2,284,400) of its own shares from the open
market at an average price of RM0.73 (2007: RM0.68) per ordinary share. The repurchase transactions were financed
by internally generated funds. The shares repurchased are retained as treasury shares.
At 31 March 2008, the Company held a total of 6,237,400 (2007: 2,284,400) of its own shares of RM0.50 each.
17. LOANS AND BORROWINGS
This note provides information about the contractual terms of the Group and the Company’s interest bearing loans
and borrowings. For more information about the Group and Company’s exposure to interest rate risk, see Note 28.
Group Company
2008 2007 2008 2007
RM RM RM RM
Non-current
Finance lease liabilities 234,376 102,441 - -
Secured revolving credits denominated in Euro 22,734,170 - 22,734,170 -
Unsecured Islamic Bonds
- Murabahah Underwritten Notes 20,000,000 - 20,000,000 -
42,968,546 102,441 42,734,170 -
Current
Unsecured bank overdrafts 80 43,157 - -
Unsecured bankers’ acceptances 30,875,000 19,096,900 - -
Finance lease liabilities 158,820 94,100 - -
Unsecured Islamic Bonds
- Murabahah Underwritten Notes 70,000,000 30,000,000 70,000,000 30,000,000
101,033,900 49,234,157 70,000,000 30,000,000
Total 144,002,446 49,336,598 112,734,170 30,000,000
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NOTES TO THE FINANCIAL STATEMENTS (continued)
17. LOANS AND BORROWINGS (continued)
17.1 Terms and repayment schedules
Carrying amount Under 1 year 1 – 2 years 2 – 5 years
Group Year of maturity RM RM RM RM
2008
Secured
Finance lease liabilities 2009 – 2012 393,196 158,820 135,524 98,852
Revolving credits
denominated in Euro 2011 22,734,170 - - 22,734,170
23,127,366 158,820 135,524 22,833,022
Unsecured
Bankers’ acceptances 2009 30,875,000 30,875,000 - -
Bank overdrafts 2009 80 80 - -
Islamic Bonds 2009 - 2012 90,000,000 70,000,000 - 20,000,000
120,875,080 100,875,080 - 20,000,000
Total 144,002,446 101,033,900 135,524 42,833,022
2007
Secured
Finance lease liabilities 2008 – 2010 196,541 94,100 65,752 36,689
Unsecured
Bankers’ acceptances 2008 19,096,900 19,096,900 - -
Bank overdrafts 2008 43,157 43,157 - -
Islamic Bonds 2008 30,000,000 30,000,000 - -
49,140,057 49,140,057 - -
Total 49,336,598 49,234,157 65,752 36,689
Company
2008
Secured
Revolving credits
denominated in Euro 2011 22,734,170 - - 22,734,170
Unsecured
Islamic Bonds 2009 - 2012 90,000,000 70,000,000 - 20,000,000
Total 112,734,170 70,000,000 - 42,734,170
2007
Unsecured
Islamic Bonds 2008 30,000,000 30,000,000 - -
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17. LOANS AND BORROWINGS (continued)
17.2 Security
Overdrafts and bankers’ acceptances of a subsidiary
� Covered by a negative pledge over the said subsidiary’s present and future assets.
� Supported by a corporate guarantee of the Company.
Revolving credits of the Company
� Secured by assignment of contract proceeds or irrevocable payment instruction (at the sole discretion
of lender bank) as well as charge over project escrow accounts. The balance of project escrow account
as at 31 March 2008 is RM2,393,582, denominated in Syrian Pounds and Euro.
17.3 Significant covenant for revolving credits facility granted to the Company
The Company is required to maintain a gearing ratio of not exceeding 3.50 times throughout the tenor of the
facility.
17.4 Islamic Bonds facility
The Company has been given permission to issue up to RM100 million of Murabahah Underwritten Notes/
Islamic Medium Term Notes (“MUNIF/IMTN Notes”) with maturities ranging from 1 to 12 months and 1 to 7
years respectively, by the Securities Commission on 27 May 2005. These notes are unsecured and are
available to the Company till 2012.
17.5 Finance lease liabilities - Group
Finance lease liabilities are repayable as follows:
Minimum
lease payments Interest Principal
RM RM RM
2008
Less than one year 178,919 20,099 158,820
Between one and five years 248,031 13,655 234,376
426,950 33,754 393,196
2007
Less than one year 106,496 12,396 94,100
Between one and five years 109,276 6,835 102,441
215,772 19,231 196,541
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NOTES TO THE FINANCIAL STATEMENTS (continued)
18. TRADE AND OTHER PAYABLES
Group Company
2008 2007 2008 2007
RM RM RM RM
Trade
Trade payables 18,681,816 15,869,916 - -
Amount due to contract customers (Note 10.4) 2,454,031 4,049,865 - -
21,135,847 19,919,781 - -
Non trade
Subsidiaries - - 24,218,138 11,976,020
Advance payments received from
contract customers 45,451,800 2,774,452 - -
Accrued expenses 10,710,120 11,514,004 855,065 3,764,495
Other payables 2,622,368 9,656,615 973,296 117,794
58,784,288 23,945,071 26,046,499 15,858,309
Total 79,920,135 43,864,852 26,046,499 15,858,309
18.1 Included in trade payables of the Group are retention sums of RM1,738,696 (2007: RM1,335,202).
18.2 Other payables include an amount due to a director of RM1,500 (2007: RM234,859).
18.3 Advance payments of RM45,451,800 were received from a contract customer during the financial year and
was partly utilised as deposits for purchase of materials and equipment for a project (see Note 10.4) as well
as other costs incurred for the project.
18.4 The amount due to subsidiaries is unsecured and bears interest at 6.00% (2007: 6.00%) per annum.
18.5 Trade and other payables denominated in currencies other than the functional currency comprise the following:
Group
2008 2007
RM RM
Euro 45,656,055 -
BND 36,777 -
45,692,832 -
19. REVENUE
Group Company
2008 2007 2008 2007
RM RM RM RM
Sale of goods 92,721,722 88,582,258 - -
Services 21,494,994 18,866,200 - -
Contract revenue 70,239,592 74,335,407 - -
Interest income from financing of
construction of telecommunication towers 14,449,351 5,570,453 - -
Dividend income from:
- subsidiaries (unquoted in Malaysia) - - 8,408,368 6,672,622
- other investments - - 392,696 4,100
Management fees - - 3,962,000 3,928,800
Rental of furnished premises - - 1,287,750 1,334,750
198,905,659 187,354,318 14,050,814 11,940,272
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20. PROFIT BEFORE TAXATION
Group Company
2008 2007 2008 2007
RM RM RM RM
Profit before taxation is arrived at after charging:
Allowance for diminution in value of other
investments (Note 9) 2,148,417 - 2,148,417 -
Auditors’ remuneration:
- statutory audit
- KPMG 224,209 155,500 35,000 30,000
- others 3,950 - - -
- other services
- KPMG 37,500 31,000 35,000 30,000
Allowance for doubtful debts 1,260,449 - - -
Goodwill written off (Note 6) 71,642 - - -
Depreciation and amortisation:
- property, plant and equipment (Note 3) 4,621,832 4,589,972 598,184 706,421
- prepaid lease payments (Note 4) 368,741 336,404 4,408 -
Hire of plant and machinery 82,595 31,764 - -
Impairment loss on investment in:
- subsidiaries (Note 7) - - 8,543,297 -
- associates (Note 8) 49,001 - - -
Interest expense on:
- finance leases 17,872 29,068 - -
- bank overdrafts 6,795 3,788 - -
- MUNIF profit payments 2,505,278 956,742 2,505,278 956,742
- bankers’ acceptances 936,518 713,027 - -
- others - - 1,325,293 160,732
Loss on disposal of property, plant and equipment - - - 1,668
Loss on disposal of:
- subsidiaries (Note 30) - 52,014 - 52,014
- associates (Note 8) 528,910 - - -
Rental of premises and office equipment 987,826 2,101,126 715,249 646,067
Foreign exchange loss
- realised - 3,044 - -
- unrealised 1,487,207 - - -
Profit before taxation is arrived at after crediting:
Bad debts recovered 397,781 826,340 - -
Dividend income from other investments 392,696 4,100 - -
Gain on disposal of property, plant and equipment 9,135 319,292 11,640 -
Gain on disposal of:
- subsidiaries 41,027 - 238,875 -
- associates - 14,999 - -
- other investments 38,712 889,378 38,712 889,378
Interest income from:
- fixed deposits 1,003,350 110,148 20,970 117,888
- subsidiaries - - 6,539,899 3,169,979
- financing of construction of
telecommunication towers 14,449,351 5,570,453 - -
Inventory written back 921,445 378,803 - -
Income from rental of furnished premises 163,700 156,960 - -
Negative goodwill on consolidation
recognised (Note 30) - 322,532 - -
Reversal of allowance for doubtful debts - 552,176 - -
Realised foreign exchange gain 585,115 262,824 - -
Hire of equipment - 3,500 - -
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NOTES TO THE FINANCIAL STATEMENTS (continued)
20. PROFIT BEFORE TAXATION (continued)
Employee benefits disclosed in the income statements include:
Group Company
2008 2007 2008 2007
RM RM RM RM
Contributions to the Employees Provident Fund 1,768,716 1,601,248 484,951 323,760
21. KEY MANAGEMENT PERSONNEL COMPENSATIONS
Compensations to key management personnel are as follows:
Group Company
2008 2007 2008 2007
RM RM RM RM
Directors of the Company
- Fees 291,000 336,500 294,500 336,500
- Other short term employee benefits 2,898,514 1,582,400 1,719,240 878,000
3,189,514 1,918,900 2,013,740 1,214,500
Other directors and key
management personnel
- Fees 150,000 60,000 - -
- Short term employee benefits 3,724,100 2,517,567 228,794 221,463
- Benefits-in-kind 11,900 11,900 - -
3,886,000 2,589,467 228,794 221,463
Total 7,075,514 4,508,367 2,242,534 1,435,963
Other key management personnel comprise persons, other than the Directors, having authority and responsibility for
planning, directing and controlling the activities of the Group either directly or indirectly.
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22. TAX EXPENSE
Group Company
2008 2007 2008 2007
RM RM RM RM
Current tax expense
Malaysian
- current year 7,436,821 5,401,539 3,292,000 2,219,000
- prior years (594,905) 181,496 461,947 158,692
6,841,916 5,583,035 3,753,947 2,377,692
Deferred tax expense/(income) (Note 11)
- current year 314,000 (193,000) 285,000 (1,646,000)
- prior years 1,774,000 (645,000) 122,000 146,000
2,088,000 (838,000) 407,000 (1,500,000)
Total tax expense 8,929,916 4,745,035 4,160,947 877,692
Reconciliation of tax expense
Profit/(Loss) for the financial year 11,084,460 15,894,744 (2,559,071) 5,504,478
Total tax expense 8,929,916 4,745,035 4,160,947 877,692
Profit before taxation 20,014,376 20,639,779 1,601,876 6,382,170
Share of tax of equity accounted associate (250) 10,739 - -
20,014,126 20,650,518 1,601,876 6,382,170
Income tax using Malaysian tax rate of
26% (2007:27%)* 5,204,000 5,538,000 416,000 1,699,000
Effect of lower tax rate for certain subsidiaries# (171,000) (1,047,000) - -
Effect of change in tax rates * (145,000) (79,000) 14,000 (46,000)
Non-deductible expenses/(Non-taxable income) 2,667,571 746,278 3,147,000 (1,080,000)
Reversal of stocks previously written down - (113,000) - -
Movements in unrecognised deferred tax assets 254,000 174,000 - -
Depreciation capitalised (59,000) - - -
7,750,571 5,219,278 3,577,000 573,000
Under/(Over) provision in prior years 1,179,095 (463,504) 583,947 304,692
Tax expense recognised in the income statements 8,929,666 4,755,774 4,160,947 877,692
Share of tax of equity accounted associates 250 (10,739) - -
Total tax expense reflected in the income
statements 8,929,916 4,745,035 4,160,947 877,692
# With effect from year of assessment 2004, companies with a paid-up capital of RM2.5 million and below at the beginning of the
basis period for a year of assessment are subject to corporate tax at 20% on chargeable income up to RM500,000. The
remaining chargeable income is subject to corporate tax at 26% (2007: 27%).
* The Malaysian corporate tax rate is 26% for year of assessment 2008 and will be 25% from year of assessment 2009, based on
the announcement in the 2008 Budget. The Group and the Company provide deferred tax at 25% (2007: 26%).
NOTES TO THE FINANCIAL STATEMENTS (continued)
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23. EARNINGS PER SHARE - GROUP
Basic/Diluted earnings per ordinary share
The calculation of basic/diluted earnings per ordinary share at 31 March 2008 was based on the profit attributable to
ordinary shareholders of RM10,655,943 (2007: RM14,689,242) and the weighted average number of ordinary shares
outstanding of 128,386,640 (2007: 133,142,965).
Weighted average number of ordinary shares
2008 2007
Issued ordinary shares, net of shares bought back at beginning of
the financial year 131,048,932 133,333,332
Effect of ordinary shares repurchased during the financial year (2,662,292) (190,367)
Weighted average number of ordinary shares at end of financial year 128,386,640 133,142,965
24. DIVIDENDS
Dividend recognised in the current financial year comprise:
Sen per share Total amount
(net of tax) RM Date of payment
2008
Final 2007 ordinary 2.92 3,739,352 23 November 2007
2007
Final 2006 ordinary 1.44 1,920,000 20 November 2006
The dividends per ordinary share as disclosed in the income statements relate to the total dividends declared or
proposed for the financial year.
25. SEGMENT REPORTING
Segment information is presented in respect of the Group’s business segments. The primary format, business segment,
is based on the Group’s management and internal reporting structure. Inter-segment pricing is determined on a
negotiated term.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis. Unallocated item comprises principally other corporate expenses.
Segment capital expenditure is the total cost incurred during the financial year to acquire property, plant and equipment
and prepaid lease payments.
Business segments
The Group comprises the following main business segments:
Manufacturing - Manufacturing, marketing and sale of HDPE products and trading of other specialised and technical
engineering products.
Works - Installation of water treatment and sewage treatment plants as well as construction of
telecommunication towers and bulk storage tanks.
Services - Sewage treatment services, treatment and disposal of sludge services as well as underground mapping
of buried utilities, closed circuit television survey and investigation and rehabilitation of underground
sewer and pipeline networks and storm water culverts.
Plantations - Cultivation of oil palm plantations.
All the business segments are operated solely in Malaysia, except for a foreign branch of a subsidiary set up in Syria
for construction activities and a foreign subsidiary (see Note 7).
NOTES TO THE FINANCIAL STATEMENTS (continued)
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25. SEGMENT REPORTING (continued)
Manufacturing Works
2008 2007 2008 2007
RM RM RM RM
Business segments
Revenue
Total external revenue 92,721,722 88,582,258 84,688,943 79,905,860
Inter segment revenue - 13,169,109 - 936,670
Total segment revenue 92,721,722 101,751,367 84,688,943 80,842,530
Segment results 21,797,047 12,250,985 3,550,077 12,009,614
Share of profit after tax of equity accounted
associates 579,647 5,067 - -
22,376,694 12,256,052 3,550,077 12,009,614
Unallocated corporate expenses
Allowance for diminution in value of other
investments
Interest income
Interest expense
Profit before taxation
Tax expense
Profit for the year
Segment assets 159,982,662 150,894,288 186,006,334 82,217,733
Investment in associates - - - 382,264
159,982,662 150,894,288 186,006,334 82,599,997
Other investments
Total assets
Segment liabilities 168,350,015 82,849,101 60,750,477 19,237,934
Capital expenditure 9,022,351 7,043,486 952,381 612,532
Depreciation and amortisation of tangible assets 4,277,011 4,435,682 270,836 80,947
There are no significant non cash expenses other than depreciation and amortisation expenses.
Malaysia Middle East
2008 2007 2008 2007
RM RM RM RM
Geographical segments
Revenue from external customers 198,838,117 187,354,318 - -
Segment assets 298,792,685 243,032,031 68,012,397 -
Other investments 11,913,916 526,190 - -
310,706,601 243,558,221 68,012,397 -
Segment liabilities 193,266,931 106,639,193 45,656,055 -
Capital expenditure 14,824,464 8,193,043 - -
NOTES TO THE FINANCIAL STATEMENTS (continued)
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Services Plantations Elimination Consolidated
2008 2007 2008 2007 2008 2007 2008 2007
RM RM RM RM RM RM RM RM
21,494,994 18,866,200 - - - - 198,905,659 187,354,318
- - - - - (14,105,779) - -
21,494,994 18,866,200 - - - (14,105,779) 198,905,659 187,354,318
1,706,215 661,691 (293,783) - - (1,242,785) 26,759,556 23,679,505
- - - - - - 579,647 5,067
1,706,215 661,691 (293,783) - - (1,242,785) 27,339,203 23,684,572
(2,713,297) (1,452,316)
(2,148,417) -
1,003,350 110,148
(3,466,463) (1,702,625)
20,014,376 20,639,779
(8,929,916) (4,745,035)
11,084,460 15,894,744
9,966,316 9,537,746 11,024,939 - - - 366,980,251 242,649,767
- - - - - - - 382,264
9,966,316 9,537,746 11,024,939 - - - 366,980,251 243,032,031
11,913,916 526,190
378,894,167 243,558,221
9,642,868 4,552,158 216,403 - - - 238,959,763 106,639,193
1,114,420 537,025 3,793,775 - - - 14,882,927 8,193,043
799,853 792,472 244,534 - - - 5,592,234 5,309,101
Others Consolidated
2008 2007 2008 2007
RM RM RM RM
67,542 - 198,905,659 187,354,318
175,169 - 366,980,251 243,032,031
- - 11,913,916 526,190
175,169 - 378,894,167 243,558,221
36,777 - 238,959,763 106,639,193
58,463 - 14,882,927 8,193,043
NOTES TO THE FINANCIAL STATEMENTS (continued)
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26. CAPITAL COMMITMENTS
Group Company
2008 2007 2008 2007
RM RM RM RM
Property, plant and equipment
Within one year
- Authorised but not contracted for 594,000 817,000 - -
- Contracted but not provided for in the
financial statements 3,392,000 3,000,000 - 3,000,000
3,986,000 3,817,000 - 3,000,000
Investment
- Contracted but not provided for in the
financial statements (Note 31.1) 1,047,000 - 1,047,000 -
5,033,000 3,817,000 1,047,000 3,000,000
27. CONTINGENT LIABILITIES - UNSECURED
The Directors are of the opinion that provision is not required in respect of the following corporate guarantees, as it is
not probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable
measurement:
Group Company
2008 2007 2008 2007
RM RM RM RM
Corporate guarantee granted:
- for banking facilities of subsidiaries - - 108,400,000 114,500,000
- to third parties in the capacity of the
Group acting as the sub-contractors or
suppliers to projects 7,155,000 2,853,000 - -
7,155,000 2,853,000 108,400,000 114,500,000
28. FINANCIAL INSTRUMENTS
Exposure to credit, interest rate, foreign currency and liquidity risk arises in the normal course of the Group’s business.
The objective of the Group’s financial risk management is to ensure the Group creates value for its shareholders by
taking steps to manage the risks through review of risk exposures, internal control systems and adherence to the
Group’s financial risk management policies.
Credit risk
Credit risk arises from sales made or services provided on credit terms. The Group seeks to control its credit risk by
setting credit limits and ensuring that sales of products and services are made to customers with an appropriate credit
history. Credit evaluations of these customers are carried out on an ongoing basis.
Cash and cash equivalents are only placed with licensed banks.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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28. FINANCIAL INSTRUMENTS (continued)
At balance sheet date, there are no significant concentrations of credit risk other than the following:
Group Company
2008 2007 2008 2007
RM RM RM RM
Amount due from three (2007: two) subsidiaries - - 128,341,611 63,491,764
Trade receivable:
Contract receivable due from
telecommunication tower contract (Note 10.2)* 94,002,414 52,697,407 - -
Other receivable:
Deposits paid to overseas suppliers (Note 10.5) 35,291,159 - - -
129,293,573 52,697,407 128,341,611 63,491,764
* Repayable over 10 years and are secured by an assignment of rental proceeds payable by cellular telecommunication service
providers leasing the telecommunication towers constructed by the subsidiary for the contract customer.
The maximum exposure to credit risk is represented by the carrying amount of each financial asset.
Foreign currency risk
The Group is exposed to foreign currency risk arising mainly from purchases of raw materials and equipment, borrowings
as well as foreign operation denominated in a currency other than RM. The currencies giving rise to this risk are
mostly United States Dollar (USD), Great Britain Pound (GBP), RMB, Euro and Syrian Pound.
The Euro denominated secured revolving credit facility of the Group (see Note 17) is designated as a hedge of the
foreign operation of a subsidiary in Syria. Proceeds from the borrowings are used to settle the operation costs. In
addition, the foreign operation also maintains two foreign currency bank accounts denominated in Euro and Syrian
Pound into which receipts from customers are deposited and from which payments are made to minimise foreign
exchange risk.
As it is not possible to predict with any certainty, the movements of the exchange rates, this risk is managed on an on-
going basis and the Group will consider hedging its foreign currency exposure should the need arise.
As at balance sheet date, the Group does not have any outstanding forward foreign exchange contract.
Liquidity risk
The Group monitors and maintains a level of bank facilities and cash and cash equivalents deemed adequate by
management to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows.
Interest rate risk
The Group’s primary interest rate risk exposure relates to short term financing facilities and fixed deposits placed with
licensed banks. The interest-earning assets and interest-bearing liabilities are negotiated and monitored according to
changes in the interest rate regime to ensure that the Group is exposed to minimal interest rate risk.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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28. FINANCIAL INSTRUMENTS (continued)
Effective interest rates and repricing analysis
In respect of interest bearing financial instruments, the following table indicates their effective interest rates at the
balance sheet date and the periods in which they mature, or if earlier, reprice.
Effective interest Less than
rate per annum Total 1 year 1 – 2 years 2 – 5 years
Group % RM RM RM RM
2008
Fixed rate instruments
Finance lease liabilities 5.68 – 9.60 393,196 158,820 135,524 98,852
Unsecured Islamic Bonds 3.70 – 5.68 90,000,000 70,000,000 - 20,000,000
Floating rate instruments
Fixed deposits placed with banks 2.40 – 6.70 18,837,953 18,837,953 - -
Unsecured bankers’ acceptances 3.50 – 5.60 30,875,000 30,875,000 - -
Unsecured bank overdrafts 7.75 80 80 - -
Secured revolving credits
denominated in Euro 8.00 22,734,170 22,734,170 - -
2007
Fixed rate instruments
Finance lease liabilities 7.40 – 11.24 196,541 94,100 65,752 36,689
Unsecured Islamic Bonds 3.90 – 4.25 30,000,000 30,000,000 - -
Floating rate instruments
Fixed deposits placed with banks 2.74 – 3.30 2,852,856 2,852,856 - -
Unsecured bankers’ acceptances 3.30 – 3.85 19,096,900 19,096,900 - -
Unsecured bank overdrafts 7.75 43,157 43,157 - -
Company
2008
Fixed rate instrument
Unsecured Islamic Bonds 3.70 – 5.68 90,000,000 70,000,000 - 20,000,000
Floating rate instruments
Fixed deposits placed with banks 2.40 200,000 200,000 - -
Secured revolving credits
denominated in Euro 8.00 22,734,170 22,734,170 - -
2007
Fixed rate instrument
Unsecured Islamic Bonds 3.90 – 4.25 30,000,000 30,000,000 - -
NOTES TO THE FINANCIAL STATEMENTS (continued)
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28. FINANCIAL INSTRUMENTS (continued)
Fair values
Recognised financial instruments
The carrying amounts of cash and cash equivalents, trade and other receivables, trade and other payables, and short
term borrowings, approximate fair value due to the relatively short term nature of these financial instruments.
The Company provides financial guarantees of RM108,400,000 (2007: RM114,500,000) to banks for credit facilities
extended to certain subsidiaries (see Note 27). The fair value of such financial guarantees is not expected to be
material as the probability of the subsidiaries defaulting on the credit lines is remote.
The carrying amounts of the unsecured Islamic Bonds issued during the financial year also approximate fair value as
their profit payment rates are in line with the prevailing market.
It is not practicable to estimate the fair value of the investment in unquoted shares of RM917,473 (2007: RM450,000)
[see Note 9]. However, based on the latest management accounts of the investee companies for the financial year
ended 31 March 2008, the Group’s share of their net tangible assets is RM2,287,132 (2007: RM1,749,341).
The fair values of other financial assets, together with the carrying amount shown in the balance sheets, are as
follows:
2008 2007
Carrying amount Fair value Carrying amount Fair value
RM RM RM RM
Financial assets
Quoted shares (Note 9)
- Group and Company 10,996,443 10,981,022 76,190 111,257
Trade receivables (non current portion)
(Note 10)
- Group 8,070,984 8,070,984 47,344,566 47,344,566
Fair value of quoted shares is based on quoted market prices at the balance sheet date without any deduction for
transaction costs.
Unrecognised financial instruments
There were no unrecognised financial instruments as at 31 March 2008 and 31 March 2007.
29. RELATED PARTIES
Identity of related parties
For the purposes of these financial statements, parties are considered to be related to the Group or the Company if
the Group or the Company has the ability, directly or indirectly, to control the party or exercise significant influence
over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the
party are subject to common control or common significant influence. Related parties may be individuals or other
entities.
Key management personnel are defined as those persons having authority and responsibility for planning, directing
and controlling the activities of the Group either directly or indirectly. The key management personnel includes all the
Directors of the Group, and certain members of senior management.
The Company has a related party relationship with:
(i) its subsidiaries;
(ii) its associates;
(iii) key management personnel; and
(iv) companies connected to certain Directors of the Company and/or of its subsidiaries.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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29. RELATED PARTIES (continued)
Significant related party transactions of the Group and of the Company, other than compensations to key management
personnel (see Note 21) and those disclosed elsewhere in the financial statements, are as follows:
Transactions with its subsidiaries
Company
2008 2007
RM RM
Nature of transactions
Dividends received (8,408,368) (6,672,622)
Management fees receivable (3,962,000) (3,928,800)
Rental of motor vehicles receivable (3,920) (4,205)
Rental income for furnished premises, inclusive of maintenance (1,287,750) (1,246,800)
Interest income (6,539,899) (3,169,979)
Transactions with an associate disposed of during the financial year
Group
2008 2007
RM RM
Nature of transactions
Commission fees payable - 192,000
Purchase of goods 939,337 -
Rental income for furnished office, inclusive of maintenance (54,000) (11,200)
Rental of motor vehicles receivable - (560)
Sales of finished goods and others (1,576,309) -
Purchase/(Sale) of property, plant and equipment 460,000 (873,770)
Transactions with members of the key management personnel of the Company
Group
2008 2007
RM RM
Nature of transactions
Purchase of a motor vehicle - 90,000
Sales of manufactured goods (318,010) -
Rental of premises (6,000) -
Transactions with companies in which certain Directors have interests
Group
2008 2007
RM RM
Nature of transactions
Rental of premises 259,200 60,000
Consultancy fees paid 137,000 -
Except for an amount of RM229,983 (2007: Nil) due from a related party, there are no other outstanding balances with
the related parties as at financial year end. The amounts due from/to subsidiaries and associates are disclosed in the
balance sheets as well as Notes 10 and 18 to the financial statements.
These transactions have been established under negotiated terms. None of the outstanding balances is secured.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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30. ACQUISITION AND DISPOSAL OF SUBSIDIARIES
30.1 Acquisition of subsidiaries
(i) Acquisition of new subsidiaries
On 8 August 2007, the Company acquired 24,999 ordinary shares of B$1.00 each in Weida (B) Sdn.
Bhd. for a cash consideration of B$24,999 (equivalent to RM56,995).
The Company also subscribed for 60,000 ordinary shares of RM1.00 each in Weida Water (ADRA) Sdn.
Bhd. (“WWASB”), representing 60% of the equity thereof, for a consideration of RM60,000. Later, on 24
September 2007, the Company disposed of 9% of the equity interest, comprising 9,000 shares, in
WWASB to a third party, for a cash consideration of RM9,000. The resultant equity interest in WWASB
decreased from 60.00% to 51.00%.
One of its indirect subsidiaries, UTIC Services Sdn. Bhd., acquired the entire equity interest comprising
2 ordinary shares of RM1.00 each in UTIC Industries Sdn. Bhd. on 17 April 2007, for a cash consideration
of RM2.
During the last financial year, the Group acquired the following subsidiaries for a total consideration of
RM12,250,000, satisfied in cash:
Purchase
Date of Equity interest consideration
Subsidiaries acquisition acquired (%) RM
Direct subsidiaries
Alamsar Sdn. Bhd. 12.6.2006 100.00 100,000
Bumi Suria Ventures Sdn. Bhd. 28.3.2007 51.43 12,000,000
12,100,000
Indirect subsidiary held through WII
Greenyard Corporation Sdn. Bhd. 11.12.2006 100.00 150,000
12,250,000
Another subsidiary, WET, had during the last financial year acquired an additional 21% equity interest in
Renexus-Weida Sdn. Bhd. (“RWSB”) which was previously a 30% owned associate of WET. The purchase
consideration was RM186,960, satisfied in cash. The resultant equity interest held by WET in RWSB
increased from 30% to 51% as at 31 March 2007.
If the acquisitions had occurred on 1 April 2007, management estimates that the consolidated profit for
the financial year ended 31 March 2008 would have been RM10,245,000.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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30. ACQUISITION AND DISPOSAL OF SUBSIDIARIES (continued)
30.1 Acquisition of subsidiaries (continued)
(i) Acquisition of new subsidiaries (continued)
The effects of the acquisitions on the Group’s assets and liabilities on the date of acquisition date are as
follows:
2008 2007
Pre-acquisition Pre-acquisition Recognised
carrying carrying Fair value value on
amounts amounts adjustments acquisition
RM RM RM RM
Property, plant and equipment
and prepaid lease payments
(Notes 3 and 4) - 4,866,577 26,598,423 31,465,000
Current assets 107,995 6,549,378 - 6,549,378
Current liabilities - (6,783,939) - (6,783,939)
Deferred tax liabilities (Note 11) - - (6,915,000) (6,915,000)
Minority interest - (11,639,361) - (11,639,361)
Net identifiable assets 107,995 (7,007,345) 19,683,423 12,676,078
Goodwill on consolidation (Note 6) - 83,414
Negative goodwill recognised
(Note 20) - (322,532)
Consideration paid,
satisfied in cash 107,995 12,436,960
Cash acquired (107,995) (5,394,353)
Net cash outflow on acquisition - 7,042,607
(ii) Increase/(Decrease) investments in existing subsidiaries
During the current financial year, the Company and one of its subsidiaries, WET, acquired additional
equity interest in the following subsidiaries from minority shareholders for a consideration of RM3,130,000,
satisfied in cash and share swap of RM3,000,000 and RM130,000 respectively:
Total
Date of Effective equity consideration
acquisition acquired (%) RM
Subsidiary
Direct subsidiary held by the Company
Weidasar Engineering Sdn. Bhd. 28.3.2008 13.00 130,000
Indirect subsidiaries held through WET
Sar-Alam Indah Sdn. Bhd. (“SASB”) 30.4.2007 3.57 1,000,000
RWSB 21.9.2007 14.28 2,000,000
3,130,000
Weida Engineering Sdn. Bhd. (“WESB”), which was previously a 100% owned subsidiary, effected a
special issue of shares during the financial year ended 31 March 2007 to the Company and third parties.
The Company subscribed for an additional 254,998 shares of RM1.00 each in WESB satisfied in cash.
The resultant equity interest held by the Company in WESB has decreased from 100% to 51% as at 31
March 2007.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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30. ACQUISITION AND DISPOSAL OF SUBSIDIARIES (continued)
30.1 Acquisition of subsidiaries (continued)
(ii) Increase/(Decrease) investments in existing subsidiaries (continued)
The acquisition of additional interest in SASB and RWSB had the following effect on the Group’s assets
and liabilities on the acquisition date:
2008
RM
Net assets acquired 376,486
Goodwill on consolidation (Note 6) 2,623,514
Cash outflow on acquisition 3,000,000
The Group also recognised a decrease in minority interest of RM376,486.
30.2 Disposal of subsidiaries
On 10 July 2007, the Company entered into a share sale agreement to dispose of its 51% equity interest in
Weida Industrial Systems Sdn. Bhd. (“WIS”) for a consideration at a sale value of RM255,000. The disposal
was completed on 27 March 2008 upon the fulfilment of all conditions precedent in the said share sale
agreement. The gain arising from the disposal of WIS is RM24,383.
On 28 March 2008, the Company also disposed of 21% of the equity interest in Weida Engineering Sdn.
Bhd. (“WESB”) for a consideration of RM343,875, satisfied in cash. The resultant group equity interest in
WESB decreased from 51% to 30% as at 31 March 2008. The Group has recognised a gain on disposal of
RM16,644.
The Group has also recognised a decrease in minority interest of RM985,113 on the disposal of WIS and
WESB.
During the last financial year, the Company acquired 51% of the equity interest in Duraplus Marketing Sdn.
Bhd. (“DMSB”) via subscription of 255,000 shares of RM1.00 each therein, satisfied in cash. The Company
had on 2 February 2007 disposed of all of its equity interest in DMSB for a total sale consideration of
RM196,350. The loss arising from the disposal was RM52,014.
31. OTHER MATERIAL EVENTS
Other significant events, other than those disclosed elsewhere in the financial statements, comprise:
31.1 Acquisition of Maju Warisanmas Sdn. Bhd. (“MWSB”)
On 25 February 2008, the Company entered into a sale and purchase agreement to acquire 600,000 ordinary
shares of RM1.00 each representing the entire issued and paid up share capital of MWSB for a cash
consideration of RM6,000,000.
The terms of payment are as follows:
(a) RM4,953,000 is payable upon the execution of the agreement; and
(b) RM1,047,000 is payable within 14 days from the day on which all the following conditions precedent
shall have been satisfied:
� Approval of Foreign Investment Committee having been obtained for the changes in the equity
structures of MWSB; and
� Such other consents or approvals as may be required of any third party or regulatory authority for
the sale.
As at 31 March 2008, a sum of RM4,953,000 has been paid to the vendors (see Note 10.5) and the remaining
balance of RM1,047,000 is disclosed as capital commitment (see Note 26). The aforesaid acquisition was
completed on 17 June 2008.
NOTES TO THE FINANCIAL STATEMENTS (continued)
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31. OTHER MATERIAL EVENTS (continued)
31.2 Other acquisitions
The Group also acquired the entire equity interest in following companies:
� Weida International Sdn. Bhd. (“WISSB”) in April 2008, for a consideration of RM1,000,000.
� Weida Philippines Inc. in June 2008, through WISSB, for a consideration of Php8,407,232 (equivalent
to RM642,016).
On 19 June 2008, the Company also acquired the remaining 49% equity interest in Weida Marketing Sdn.
Bhd. from two related parties for a consideration of RM882,000. Another subsidiary, WET also acquired an
additional 338,000 ordinary shares of RM1.00 each (representing 16.9% equity interest) in UTIC from a
related party, for a consideration of RM1,014,000, satisfied in cash.
31.3 Purchase of own shares
On 28 April 2008, the Company repurchased 200,000 of its issued shares from the open market at an
average price of RM0.58 per ordinary share. The repurchase transactions were financed by internally
generated funds.
32. CHANGE IN ACCOUNTING POLICY
The accounting policies set out in Note 2 have been applied in preparing the financial statements for the financial year
ended 31 March 2008.
The adoption of FRS 117, Leases, has necessitated the classification of leasehold land. The up-front payments made
for leasehold land represent prepaid lease payments and are amortised on a straight-line basis over the lease term.
Prior to 1 April 2007, leasehold land was classified as property, plant and equipment and was stated at cost/valuation
less accumulated depreciation and accumulated impairment losses.
As a result of the adoption of FRS 117 at 1 April 2007, the carrying value of leasehold land held under operating lease
has now been reclassified to prepaid lease payments as a separate line item in the consolidated balance sheet.
Other than the reclassification, this change in accounting policy does not have any financial impact on the Group and
on the Company.
33. COMPARATIVE FIGURES
Certain comparative figures have been reclassified as a result of the change in accounting policy as stated in Note 32
as well as to conform with the current year’s presentation.
Group
As restated As previously stated
RM RM
Balance sheets
Property, plant and equipment 40,168,538 87,343,678
Prepaid lease payments 47,175,140 -
Income statements
Revenue 187,354,318 184,822,495
Purchase of finished goods 7,442,104 4,910,281
NOTES TO THE FINANCIAL STATEMENTS (continued)
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Location Usage Tenure Date Of Land Approximate Net Book Date Of
Expiry Area/ Age Of Value As At Acquisition/
Acres Building (year) 31.03.2008 (RM) Last Revaluation
Lot 472, Block 8, Muara Office and Leasehold 07/07/2058 17.39 10 19,113,371 15/02/2005Tebas Land District, manufacturingJalan Bako, 93050 buildings andKuching, Sarawak storage yard
Lot 48, SEDCO-Lok Kawi Storage yard Leasehold 31/12/2042 0.82 N/A 519,153 15/02/2005Industrial Estate, Papar,88801 Kota Kinabalu, Sabah
Lot 56, SEDCO-Lok Kawi Storage yard Leasehold 31/12/2042 0.93 N/A 577,833 15/02/2005Industrial Estate, Papar,88801 Kota Kinabalu, Sabah
Lot 57, SEDCO-Lok Kawi Office and Leasehold 31/12/2042 2.15 12 3,506,616 15/02/2005Industrial Estate, Papar, manufacturing88801 Kota Kinabalu, Sabah building
Lot 58, SEDCO-Lok Kawi Manufacturing Leasehold 31/12/2042 1.03 6 1,736,233 15/02/2005Industrial Estate, Papar, building and88801 Kota Kinabalu, Sabah storage yard
Lot 59, District of Papar, Storage yard Leasehold 31/12/2042 1.03 N/A 913,996 15/02/2005SEDCO-Lok Kawi, Papar,88801 Kota Kinabalu, Sabah
Lot 109, Jalan AM2, Office and Freehold N/A 3.04 11 5,430,253 15/02/2005Arab-Malaysian Industrial manufacturingPark, 71800 Nilai, building andSeremban, Negeri Sembilan storage yard
Lot 108, Jalan AM2, Storage yard Freehold N/A 3.68 N/A 2,204,753 27/08/2004Arab-Malaysian IndustrialPark, 71800 Nilai,Seremban, Negeri Sembilan
Lot 8, Kota Kinabalu, Vacant land Leasehold 31/12/2098 2.11 N/A 1,780,000 19/03/2008Industrial Park,Kota Kinabalu, Sabah
Lot 1969, Block 5, Office and Leasehold 14/08/2056 0.64 3 1,128,672 11/12/2006Kuala Baram Land District, manufacturingTaman Senadin, Miri building and
storage yard
Lot 1970, Block 5, Storage yard Leasehold 14/08/2056 0.64 N/A 705,045 28/03/2007Kuala Baram Land District,Taman Senadin, Miri
Lot 33, Arip Land District, Vacant land Leasehold 12/11/2066 5,325 N/A 11,635,806 28/03/2007Naong, Arip, Sibu for oil palm
plantation
Lot 34, Arip Land District, Vacant land Leasehold 12/11/2066 1,265.2 N/A 2,764,624 28/03/2007Naong, Arip, Sibu for oil palm
plantation
Lot 1, Block 8, Anap Land Vacant land Leasehold 27/11/2066 5,265.7 N/A 11,506,228 28/03/2007District, Sg. Muput Kana, for oil palmTatau Bintulu plantation
Lot 4, Block 16, Anap Land Vacant land Leasehold 27/11/2066 2,241.2 N/A 4,897,309 28/03/2007District, Sg. Muput Kana, for oil palmTatau Bintulu plantation
Lot 21 & 23, Sunway Office Building Leasehold 04/06/2105 0.33 2 3,491,162 24/01/2008Damansara Technology Park,Petaling Jaya, Selangor
LIST OF PROPERTIESAs At 31 March 2008
Note: The revaluation policy on landed property is disclosed under Note 2(c)(i) and 2(d)(ii) to the Financial Statements as outlined
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ANALYSIS OF SHAREHOLDINGSAs At 29 July 2008
Authorised Share Capital : RM100,000,000.00
Issued and Paid-up Share Capital : RM66,666,666.00
Class of Shares : Ordinary Shares of RM0.50 each
Voting Rights : One vote per ordinary share
Distribution Schedule of Ordinary Shares
Holdings No. of Holders Total Holdings %*
Less than 100 shares 106 4,049 0.00#
100 to 1,000 shares 458 245,842 0.19
1,001 to 10,000 shares 1,444 7,217,219 5.69
10,001 to 100,000 shares 555 17,182,932 13.54
100,001 to less than 5% of issued shares 68 43,105,342 33.97
5% and above of issued shares 5 59,140,548 46.61
TOTAL 2,636 126,895,932* 100.00
# Less than 0.01%
* Excluding 6,437,400 ordinary shares of RM0.50 each bought back and retained as treasury shares as at 29 July 2008
List Of Thirty Largest Securities Accounts Holders
No. Name No. of shares held %*
1. Weida Management Sdn. Bhd. 26,048,974 20.53
2. HLG Nominee (Tempatan) Sdn. Bhd. - Assar Asset Management Sdn. Bhd. 11,333,332 8.93
for Assar Industri Sdn. Bhd.
3. Amanah Raya Nominees (Tempatan) Sdn. Bhd. - Skim Amanah Saham 8,017,334 6.32
Bumiputera
4. Dato’ Lee Choon Chin 7,074,242 5.57
5. Lembaga Tabung Haji 6,666,666 5.25
6. Lim Wei Wui 5,978,000 4.71
7. Jee Hon Chong 3,075,550 2.42
8. Tok Jiak Yong 3,075,550 2.42
9. Sim Hong Swee 3,004,506 2.37
10. Mayban Nominees (Tempatan) Sdn. Bhd. - Pledged Securities Account for 2,537,700 2.00
Siaw Teck Siong
11. Malaysia Nominees (Tempatan) Sendirian Berhad - Great Eastern Life 2,400,300 1.89
Assurance (Malaysia) Berhad (PAR 1)
12. Amanah Raya Nominees (Tempatan) Sdn. Bhd. - Public Islamic 2,158,400 1.70
Opportunities Fund
13. HSBC Nominees (Tempatan) Sdn. Bhd. - HSBC (M) Trustee Bhd. for 2,082,900 1.64
OSK-UOB Small Cap Opportunity Unit Trust (3548)
14. TA Nominees (Tempatan) Sdn. Bhd. - Pledged Securities Account for 1,647,500 1.30
Wee Song Ching
15. HLB Nominees (Tempatan) Sdn. Bhd. - Pledged Securities Account for 1,239,700 0.98
Goh Sin Bong
16. Malaysia Nominees (Tempatan) Sendirian Berhad - Great Eastern Life 1,159,634 0.91
Assurance (Malaysia) Berhad (DR)
17. Public Nominees (Tempatan) Sdn. Bhd. - Pledged Securities Account for 1,133,800 0.89
Siaw Teck Siong (E-PDG)
18. Malaysia Nominees (Tempatan) Sendirian Berhad - Great Eastern Life 971,700 0.77
Assurance (Malaysia) Berhad (NON PAR 1)
19. Universal Trustee (Malaysia) Berhad - AMB Unit Trust Fund 848,800 0.67
20. Tan Kim Lian 654,000 0.52
21. MERCSEC Nominees (Tempatan) Sdn. Bhd. - Pledged Securities Account 575,500 0.45
for Siow Wong Yen @ Siow Kwang Hwa
22. Malaysia Nominees (Tempatan) Sendirian Berhad - Great Eastern Life 522,400 0.41
Assurance (Malaysia) Berhad (PAR 2)
23. CIMSEC Nominees (Asing) Sdn. Bhd. - CIMB for Teo Joo Kim (PB) 454,900 0.36
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ANALYSIS OF SHAREHOLDINGSAs At 29 July 2008 (continued)
List Of Thirty Largest Securities Accounts Holders (continued)
No. Name No. of shares held %*
24. UOBM Nominees (Tempatan) Sdn. Bhd. - Exempt An for Areca Capital 441,000 0.35
Sdn. Bhd. (Client A/C 1)
25. Mayban Nominees (Tempatan) Sdn. Bhd. - Pledged Securities Account for 384,900 0.30
Yee Meng Hong
26. Cartaban Nominees (Tempatan) Sdn. Bhd. - Petronas for Petroliam 382,600 0.30
Research Fund
27. Ong Beng Kee 380,000 0.30
28. Ung Chin Seng 330,000 0.26
29. MKW Jaya Sdn. Bhd. 300,000 0.24
30. Chew Gim Hye 275,000 0.22
* Excluding 6,437,400 ordinary shares of RM0.50 each bought back and retained as treasury shares as at 29 July 2008
List Of Substantial Shareholders
No. of shares held
No. Name Direct %(1) Indirect %(1)
1. Dato’ Lee Choon Chin 7,074,242 5.57 26,048,974(2) 20.53
2. Datin Liew Kee Moi - - 26,048,974(3) 20.53
3. Weida Management Sdn. Bhd. 26,048,974 20.53 - -
4. Assar Industri Sdn. Bhd. 11,400,656(4) 8.98 - -
5. Skim Amanah Saham Bumiputera 8,017,334 6.32 - -
6. Lembaga Tabung Haji 6,666,666 5.25 - -
Notes:
(1) Excluding 6,437,400 ordinary shares of RM0.50 each bought back and retained as treasury shares as at 29 July 2008.
(2) Deemed interested by virtue of his substantial shareholding in Weida Management Sdn. Bhd..
(3) Deemed interested by virtue of her spouse’s, Dato’ Lee Choon Chin and her substantial shareholdings in Weida Management
Sdn. Bhd..
(4) 11,333,332 shares are held through Assar Asset Management Sdn. Bhd..
Directors’ Interests
No. of shares held
No. Name Direct %(1) Indirect %(1)
1. Haji Su’ut bin Haji Suhaili 33,334 0.03 177,966(2) 0.14
2. Dato’ Lee Choon Chin 7,074,242 5.57 26,048,974(3) 20.53
3. Datu Voon Chen Hian @ Voon Chen Kok 40,000 0.03 70,000(4) 0.06
4. Datuk Dr. Stalin Hardin 33,334 0.03 - -
5. Jee Hon Chong 3,090,776 2.44 - -
6. Chew Chin Choong - - - -
7. Yeoh Chin Hoe - - - -
The Directors by virtue of their interests in shares in the Company are also deemed to have interests in shares in all
of its related corporations to the extent the Company has an interest, pursuant to Section 6A of the Companies Act,
1965.
Notes:
(1) Excluding 6,437,400 ordinary shares of RM0.50 each bought back and retained as treasury shares as at 29 July 2008.
(2) Deemed interested by virtue of his spouse’s interest in Weida (M) Bhd..
(3) Deemed interested by virtue of his substantial shareholding in Weida Management Sdn. Bhd..
(4) Deemed interested by virtue of his spouse’s interest in Weida (M) Bhd..
99
I/We ................................................................................... (Name in full) ..................................... (NRIC/Company No.)
of .............................................................................................................................................. (Address) being a member/
members of the abovenamed Company hereby appoint ...................................................................... (Name in full) of
................................................................................................................................................................. (Address) or
failing him/her, the Chairman of the meeting as my/our proxy to vote for me/us and on my/our behalf at the Ninth
Annual General Meeting of the Company to be held at Dewan Muhibbah, 2nd Floor, Merdeka Palace Hotel &
Suites, Jalan Tun Abang Haji Openg, 93000 Kuching, Sarawak on Thursday, 25 September 2008 at 11.00 am
and any adjournment thereof.
Please indicate with an “X” in the appropriate box against each resolution how you wish your vote to be cast. If you do
not indicate how you wish your proxy to vote on any resolution, the proxy shall vote as he thinks fit, or at his discretion,
abstain from voting.
My/our proxy is to vote as indicated below:-
NO. RESOLUTIONS FOR AGAINST
1. To approve the increase of directors’ fees for the financial year ending
31 March 2009.
2. To approve the payment of directors’ fees for the financial year ending
31 March 2009.
3. To re-elect Tuan Haji Su’ut bin Suhaili as director.
4. To re-elect YBhg. Dato’ Lee Choon Chin as director.
5. To re-elect Mr. Yeoh Chin Hoe as director.
6. To re-appoint Messrs. KPMG as auditors.
Special Business
7. Ordinary Resolution - Authority to issue shares pursuant to Section 132D
of the Companies Act, 1965.
9. Ordinary Resolution - Proposed renewal of authority for purchase of own
shares by the Company.
Shareholding Represented by Proxy
Dated this ............ day of ................................. 2008 ..................................................................
Signature of shareholder(s)/common seal
Notes:
(1) A proxy may but need not be a member of the Company and the provisions of Section 149(1)(b) of the Companies Act, 1965
shall not apply to the Company.
(2) To be valid, the duly completed proxy form must be deposited at the registered office of the Company at Wisma Hock Peng,
Ground Floor to 2nd Floor, 123, Green Heights, Jalan Lapangan Terbang, 93250 Kuching, Sarawak not less than 48 hours
before the time set for holding the meeting or any adjournment thereof.
(3) A member shall be entitled to appoint more than one (1) proxy to attend and vote at the same meeting provided that the
provisions of Section 149(1)(c) of the Companies Act, 1965 are complied with.
(4) Where a member appoints more than one (1) proxy, the appointment shall be invalid unless he specifies the proportions of his
shareholdings to be represented by each proxy.
(5) If the appointor is a corporation, the proxy form must be executed under its common seal or under the hand of an officer or
attorney duly authorised.
FORM OF PROXYWEIDA (M) BHD.(Company No. 504747 - W)
(Incorporated in Malaysia)
The Company Secretary
WEIDA (M) BHD.(Company No. 504747-W)
Wisma Hock Peng, Ground Floor - Second Floor,
123, Green Heights, Jalan Lapangan Terbang,
P.O. Box 2424, 93748 Kuching, Sarawak.
Affix Stamp
