DSCSOL-AnnualReport2009 (1.4MB)

8/8/2019 DSCSOL-AnnualReport2009 (1.4MB)

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DSC

SOLUTIONS

BERHAD

I

AnnualReport2009

DSC SOLUTIONS BERHAD(Company Number : 721605-K )

(Incorporated in Malaysia under the Companies Act 1965)

Annual R eport 2009

DSC Solutions Berhad

No. 2-GM, Jalan PJS 10/2

Subang Indah, 46050 Petaling Jaya

Selangor, Malaysia

Tel : (603) 5635 8889

Fax : (603) 5632 4790

Email : [email protected]

Website : www.dsc.com.my

The admission of DSC Solutions Berhad to the Official List was sponsored by Kenanga Investment Bank Berhad.


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2 CrprateInrmatin

3 CrprateStructure

4-7 Directrs'Prle

8-9 ChairmansStatement

10-13 StatementCrprateGvernance

14-16 AuditCmmitteeReprt

17 StatementnInternalCntrl

18 StatementDirectrsRespnsibility

19 AdditinalCmplianceInrmatin

20 FinancialStatements

47 AnalysisSharehldings

49 NticeAnnualGeneralMeeting

50 StatementAccmpanyingNticeAnnualGeneralMeeting

PrxyFrm

cntents


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DSC SOLUTIONS BERHAD (721605-K)

A n n u a l R e p r t 2 0 0 9

2BOARD OF DIRECTORSIndependent Non-Executive Chairman DatDr.MhamedIbrahimbinAWahid

Group Managing Director SeahLiangChiang

Executive Directors ChuaYckPeng WngEeSing LengSingWeng

Independent Non-Executive Directors MukSaiTat EdwardKhrYewHeng

AUDIT COMMITTEE

Chairman MukSaiTat

Members DatDr.MhamedIbrahimbinAWahid EdwardKhrYewHeng

NOMINATION COMMITTEE

Chairman DatDr.MhamedIbrahimbinAWahid

Members MukSaiTat EdwardKhrYewHeng

REMUNERATION COMMITTEE

Chairman EdwardKhrYewHeng

Members DatDr.MhamedIbrahimbinAWahid MukSaiTat

HEAD OFFICE

N.2-GM,JalanPJS10/2SubangIndah46050PetalingJayaSelangrDarulEhsan

Teln.:+60356358889Faxn.:+60356324790Emailaddress:[email protected]:www.dsc.cm.my

67AyerRajahCrescent#02-25AyerRajahIndustrialEstateSingapre136650

Teln.:+6566657500Faxn.:+6566657522

Emailaddress:[email protected]:www.dsc.cm.sg

COMPANY SECRETARIESTeaSrHua(MACS01324)ChanBeeFang(MAICSA7032385)

REGISTERED OFFICE

ThirdFlr,N.79(RmA)JalanSS21/60,DamansaraUtama47400PetalingJayaSelangrDarulEhsan

Teln.:603-77284778Faxn.:603-77223668

SPONSORKenanga Investment Bank Berhad801,8thFlrKenangaInternatinalJalanSultanIsmail50250KualaLumpur

Teln.:603-20275555Faxn.:603-21646690

AUDITORS

Messrs. SJ Grant ThorntonLevel11FaberImperialCurt

JalanSultanIsmail50250KualaLumpur

Teln.:+60326924022Faxn.:+60327325119

PRINCIPAL BANKERS

MalayanBankingBerhadRHBBankBerhadAllianceBankMalaysiaBerhadDBSBankLtd

SHARE REGISTRAR

Tricor Investor Services Sdn Bhd(Formerly known as Tenaga Koperat Sdn Bhd)Level17,TheGardensNrthTwerMidValleyCity,LingkaranSyedPutra59200KualaLumpur

Teln.:+60322643883Faxn.:+60322821886

STOCK EXCHANGE LISTING

ACEMarketBursaMalaysiaSecuritiesBerhadWebsite:www.bursamalaysia.cmStckName:DSCSoLStckCde:0152

CORPORATE INFORMATION


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A n n u a l R e p r t 2 0 0 9

3

CORPORATE STRUCTURE

100% 100%

100%

(Investment holding & R & D)

(MSC Malaysia Status Company)

DSC Solutions Berhad

(Provision of integrated AIDC

solutions, software and

engineering services)

Digital Scanning

Corporation Pte Ltd

(Dormant)

Digital Scanning

Corporation

(Suzhou) Co. Ltd

(Provision of integrated AIDC

solutions, software and

engineering services)

DSC Systems (M) Sdn Bhd


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A n n u a l R e p r t 2 0 0 9

4

DIRECTORS' PROFILE

Seah Liang Chiang,Malaysian,aged46Group Managing Director

B. Sc (Economics), National University o Singapore (1987)

Mr.SeahistheFunderandGrupManagingDirectrtheCmpany.HewasappintedttheBardn23March2006

andisasubstantialsharehldertheCmpany.HegraduatedrmNatinalUniversitySingaprewithanEcnmics

degreein1987.

Mr.SeahleadsthemanagementteaminDSCGrup.HehasbeenintheAIDCindustryrver18yearsandintheITindustry

rver20yearswiththerequisitein-depthexperienceandknwledgeinthevariusaspectstheAIDCindustry.

Upngraduatin,hejinedtheITindustryasaSalesExecutiveinCmputerIndustriesPteLtd.Hejinedthecmputer

divisinTriTechPteLtdsix(6)mnthslater.Withinthesameyear,hejinedaUS-basedMNCcmpanydealingwith

AIDCprducts,DynamarCmputerPrductsPteLtd,asasalesengineerandwasprmtedtsalesmanagerwithinsix(6)

mnthsservice.Hethendecidedtleavethecmmercialldandsetupacmpanywithaewclleaguesintheindustry,calledDatacrpPteLtd.HewastheSalesDirectrthecmpanyuntil1992.In1993,hedecidedtstartutnhiswn

andestablishedDigital.

Inadditinthiscmmercialandbusinesssuccess,Mr.Seahhasalsbeeninvitedtparticipateinseveralindustry

rumsandbusinesscmmitteesrganisedbytheSingapreGvernment.HewasPresidenttheYungEntrepreneurs

organisatin(2000-2003)(nwknwnas EntrepreneursorganisatinrEo),a cmmitteememberthe Institute

PlicyStudies(2002),cmmitteememberCuncilrCrprateDisclsures&GvernanceunderSingapresMinistry

Finance(2003),Pr-enterprisePanelunderSingapresMinistryTradeandIndustries(2003-present),cmmitteemember

TemasekPlytechnicBusinessAdvisryBard(2003-present),executivecmmitteememberActinCmmitteer

EntrepreneurshipunderSingapresMinistryTradeandIndustriesSingapre(2005-present)andcmmitteemember

ACRAStandingLawReviewFcusGrup(2005-present).

HewasnminatedandwasanalistrtheinauguralPhenixawardbytheSingapreEcnmicDevelpmentBard(EDB)in2002andreceivedtheSpiritEnterpriseAward(SoE)in2007.HisleadershipintheAIDCindustryalsattracted

theattentintheEDBandsubsequentlyDSCGruphadreceivedinvestmentsandgrantsrR&D.

Wong Ee Sing,Malaysian,aged44Executive Director

B. Engineering (Electronics & Electrical), Nanyang Technological University (1990)

M.Sc (Communications & Computing), Nanyang Technological University (1994)

Mr.WngisanExecutiveDirectrtheCmpany.HeisalstheChieTechnicalocertheGrup.Hewasappintedt

theBardn21July2008.HebtainedhisdegreeinElectricalandElectrnicsEngineeringrmNanyangTechnlgical

University,Singaprein1990.

Upngraduatin,hestartedhiscareerinSingapreasaSystemsEngineerwithInternatinalVidePrductsPteLtdmainlyinvlvedinviderecrdingandstreamingtechnlgiesindustry.Hewasinvlvedindevelpmentandtestingactivitiesas

wellasISo9000certicatinprcesses.Inhisur(4)yearswiththecmpany,hehelpeddevelpandmanagetheFactry

AutmatinSystem.InJanuary1995,hejinedPoSBCmputerServicePteLtd,asubsidiarythelargestcnsumerbank

inSingapre,i.e.PoSBBankasaNetwrkEngineer.Hewasinvlvedinthesettingupandcmmissiningthebanks

wideareacmputernetwrk(WAN),internetbankingande-cmmerceplatrms.InJune1997,hewasheadhuntedtjin

NetwrkrElectrnicTransers(S)PteLtd(NETS),thecmpanyperatingSingapreslargestelectrnicpaymentsnetwrk

asaPrjectManager(NETSistheequivalentMEPSinMalaysia).AtNETS,hewastheprjectmanagerverseeingseveral

keymilestnesprjectsthatestablishedSingapreasnetheglbalsuccessstriesintheimplementatinelectrnic

payments.


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A n n u a l R e p r t 2 0 0 9

5ItwasinNETSthatMr.WnghadhiswrkingexpsurenAIDCtechnlgies,inparticulartechnlgiesadptedridenticatinpurpsesandrsecuredvericatinpurpses.HeletinMarch1999tsetuphiswnITengineeringservices

andprjectcmpany,calledInnlabPteLte.DuethisextendedexpsureinslutindevelpmentandlargescaleAIDC

andelectrnicpaymentprjectimplementatincupledwithseveralcllabratinswithurGrup,hewasengagedbyur

Grupasatechnicalcnsultantin2000.Mr.WngciallyjinedDSCGrupinJanuary2007asChieTechnicalocer.

Mr.Wng,beingdedicatedtcntinuusselimprvement,alshldsaMasterScienceinCmmunicatinsandCmputing

rmNanyangTechnlgicalUniversitySingaprein(1994).Hehasalswnawardsrhisacademicandwrkexcellence.

HereceivedaMeritAwardrbeinganexemplarystarmPoSBin1996,aSingapreNatinalScience&TechnlgyBard

GldMedalawardrbeingthebestverallstudentinhisMastersdegreecursein1994andAsiasBesttheBestprize

inaQualityPrcessCmpetitinrganizedbytheThmpsnGrupin1993.

Mr.Wnghastwelve(12)years experiencein paymentprcessingandinternet servicingindustries.He iscurrently

respnsiblerdevelpmentnewprductsandenhancementexistingmdulesaswellasverseeingtheprduct

testingandcerticatinprcesses.HeisalsurtechnlgycerridentiyingemergingtechnlgiesrelevanttDSCGrup.

Leong Siong Weng,Singaprean,aged35Executive Director

B. Science (Hons), National University o Singapore (2000)

Mr.LengisanExecutiveDirectrtheCmpany.Mr.LengwasappintedttheBardn26octber2009.Hehldsa

generalhnursdegreermNatinalUniversitySingapre.

Upngraduatinin2000,hejinedDigitalasaSalesEngineer.Aseldrivenandhighlymtivatedindividual,hesurpassed

hissalestargetsandwasmadeSalesManagerwithinayear.Hecntinuedtshwhardwrkanddedicatinbysecuring

mremajraccuntsrurGrup.HewasprmtedtthepsitinSalesDirectrin2004andleadsDigitalssalesteam.HecurrentlyservicesmajraccuntsrDSCGrup.

Inhisnine(9)yearswithDSCGrup,hehasledthesalesteamtwinmilestneprjectsrDigitalsuchasThaiSmartcard

Prject,orgaTelcSIMCardsPersrTelkmsel,NUSMatriculatinSmartcardPrject,STAerMiareCardPrject,Star

CruisesGuests/VisitrTrackingPrject.

HisrespnsibilityasSalesDirectrincludesmanagingthesalesteam,rmulatingsalesstrategies,identiyingandappinting

newvalueaddedresellers,identiyingnewpartnersrAIDCturnkeyprjectsandsecuringinternatinalbusiness.

Chua Yock Peng,Singaprean,aged45Executive Director

B. Business Administration, National University o Singapore (1987)

Mdm.ChuaisanExecutiveDirectrtheCmpany.Mdm.ChuawasappintedttheBardn23March2006andisa

substantialsharehldertheCmpany.Mdm.ChuahldsadegreeinBusinessAdministratinrmtheNatinalUniversity

Singapre.

Mdm.Chuagraduatedin1987andwrkedintheeldeventrganisatinandmanagementvenuesrSentsa

DevelpmentCrpratinandSingapreIndrStadium.In1992,shejinedMarinaVillagePteLtdasamarketingexecutive

andgainedexpsureinthecmmercialsectr.Shewasrespnsibleinprvidingmarketingsupprtrtheprmtinal

activitiesinmarketingtheprpertiesdevelpedaswellasassumingtherleprjectmanager,managingthelgistics

tsupprtthemanyradshwsandsalesprgrammesrganised.Sheletin1994andjinedPrudentialAssuranceLtdas

anancialplannerrtw(2)years.

ShejinedDigitalasanoperatinsManagerinchargeceadministratin,custmersupprtandlgisticsin1999.She

assumedtherleoperatinsDirectrsince2004.

DIRECTORS' PROFILE


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A n n u a l R e p r t 2 0 0 9

6Dato Dr. Mohamed Ibrahim bin A Wahid,Malaysian,aged49Independent NonExecutive Chairman

University o Wales College o Medicine, Cardif, Wales, United Kingdom, (1985)

DatDr.MhamedIbrahimbinAWahidistheIndependentNn-ExecutiveChairmantheCmpanyandwasappinted

ttheBardn 26octber2009.Heis alsChairmantheNminatinCmmitteeandamember bththeAudit

CmmitteeandRemuneratinCmmitteetheCmpany.HegraduatedrmtheUniversityWales,CllegeMedicine,

Cardi,Wales,UnitedKingdmwithamedicaldegreein1985.

HewasappintedaMedicalDirectrandClinicalonclgistCnsultantatWijayaBaruInternatinalMedicalCentrein2008.

HeisalsavisitingClinicalonclgistCnsultantatPantaiMedicalCentre.Hehasbeenpractisingmedicinerver23

yearsandhehasspecialisedinClinicalonclgyr16years.

Upngraduatin,hedidhishusemanshipatSingletn&MrrisnHspital,Swansea,Wales.Ayearlater,hebecamea

SenirHuseocerinNrthTeesGeneralHspital.HewentnttakeuptherlesClinicalonclgyRegistrarinVelindreHspital,Cardi,WalesandRyalFreeHspital,Lndn,EnglandintheearlyninetiesberereturningtMalaysia.Upn

hisreturnin1993,hewasappintedasthelecturerthemedicineUniversitiMalaya.Subsequently,hewasappinted

asHeadtheClinicalonclgyUnittheUniversityMalayaMedicalCentre,KualaLumpur.

Inadditinthiscareersuccess,DatDr.MhdIbrahimA.Wahid,hasbeenappintednseveralcmmittees.Hewasn

theExpertCmmitteetwritetheClinicalPracticeGuidelinesnbreastcancerinMalaysia(2002),aNatinalAdvisryBard

MemberrAstraZenecanIressa(2003),anInternatinalAdvisryBardMemberrScheringAGrBnes(2005),an

InternatinalAdvisryBardMemberrAstraZenecanbreastcancer(2005),anInternatinalAdvisryBardMember

rBayerPharmaceuticaln Sraanib (2006)and aClinicalTrialscmmitteemember theSuthEastAsiaRadiatin

onclgySciety(SEARoS)(2006).

Thrughuthiscareer,DatDr.MhdIbrahimA.Wahidhascnductednumerusmedicalresearches.In2003,hewaspart

ateamwhichreceivedabrnzemedalIRPAresearchawardrhiswrkinUsingarticialnetwrkasaprgnsticindicatrrpredictingsurvivalinNaspharyngealcancer.

HeiscurrentlythepresidentMalaysianonclgyScietyaswellastheAsianPacicFederatinorganisatinrCancer

ResearchandCntrl(APFoCC)andisalstheVicePresidenttheSelangrAssciatinrtheMentallyHandicapped.

Muk Sai Tat,Malaysian,aged47Independent NonExecutive Director

Chartered Accountant (M) (1990)

Master o Business Administration, University o Bath, United Kingdom, (1996).

Mr.MukisanIndependentNn-ExecutiveDirectrtheCmpanyandwasappintedttheBardn26octber2009.He

istheChairmantheAuditCmmitteeandamemberbththeNminatinCmmitteeandRemueratinCmmittee

theCmpany.Mr.MukisagraduatetheMalaysianInstituteCertiedPublicAccuntants(MICPA)andamembertheMalaysiaInstituteAccuntants(MIA).

UpngraduatinrmVictriaInstitutin,KualaLumpurin1983,Mr.MukstartedhiscareerwithPriceWaterhuseasanAudit

Assistant.HewaslaterprmtedtthepsitinAuditSenirupnhissuccessulcmpletintheMalaysianInstitute

CertiedPublicAccuntants(MICPA)nalexaminatininJune1989andhewasadmittedttheMalaysiaInstitute

Accuntants(MIA)in1990.

In1996,hecmpletedhisExecutiveMasterBusinessAdministratinPrgrammeatertakinguppsitinsinogilvy&

Mather(Malaysia)SdnBhdandEvereadyBatteryCmpany(M)SdnBhd.HethenbecametheFinancialCntrller(Sutheast

Asia)EmersnElectric(M)SdnBhdrthree(3)yearsberebecmingtheChieFinancialocerPernasotisElevatr

C.SdnBhd&otisManuacturingCmpanySdnBhd,theGeneralManagerrSkylineCnceptsSdnBhdandGrupChie

ExecutiveocerCncinSdnBhdrm2001t2004.

DIRECTORS' PROFILE


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A n n u a l R e p r t 2 0 0 9

7InApril2004,Mr.MukwasappintedastheGrupChieExecutiveocer/ExecutiveDirectrMangiumIndustriesBhd.Duringhistenure,heversawtheGrupsbusinesses,whichincludesindustrialtimberplantatin,timberprcessingand

trading,printing,blendinganddistributinalchlicbeverages.Healsdevelpedandimplementedbusinessstrategies,

aswellasinitiatedacrpraterestructuringplanwiththeaimturningtheGruparund.

Inoctber2007,heletMangiumIndustriesBhdandiscurrentlyabusinesscnsultant.

Edward Khor Yew Heng,Malaysian,aged39Independent NonExecutive Director

Associate, Chartered Institute o Management Accountants, UK (CIMA)

Chartered Accountant (M) (2004)

Mr.KhrisanIndependentNn-ExecutiveDirectrtheCmpanyandwasappintedttheBardn26octber2009.He

istheChairmantheRemuneratinCmmitteeandamemberbththeAuditCmmitteeandNminatinCmmitteetheCmpany.Mr.KhrisacharteredmanagementaccuntantbytrainingandisanAssciatemembertheChartered

InstituteManagementAccuntants,UK(CIMA)since1996andaregisteredcharteredaccuntantwiththeMalaysian

InstituteAccuntants(MIA).

Hehasver13yearsexperienceinareascrprateaairs,crpratenance,strategyplanningandnancialmanagement

andhasspentmsthisyearsintheICTindustry.Hehasheldvariuspsitinsintheareascrprateplanning,crprate

nance,businessdevelpment,accuntingperatins,strategicmarketing,debtandcreditrecveryandlegalaairs.

Hestartedhiscareerasanauditrandmanagementcnsultantwithinternatinalpublicaccuntants,DelitteTuche

Thmatsu.Healsspentseven(7)yearswiththeTIMEEngineeringBerhadGrupwhichistheTechnlgy&Engineering

divisinRenngBerhadGrup(nwknwnasUEMWrldGrup).HeisalsanIndependentNn-ExecutiveDirectr

TFPSlutinsBerhad.

Nte:

1. NnetheDirectrshaveamilyrelatinshipwiththerDirectrsrmajrsharehldersexceptthellwing:-

(a) SeahLiangChiangisthespuseChuaYckPeng,

(b) SeahLiangChiangandChuaYckPengwharetheDirectrsandSharehldersDSCSystemsPte.Ltd.,a

substantialsharehldertheCmpany.

2. NnetheDirectrshaveanypersnalinterestinanybusinessarrangementinvlvingtheCmpanyandallthe

Directrshavehadncnvictinsrencestherthantracencesinthepasttenyears.

DIRECTORS' PROFILE


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A n n u a l R e p r t 2 0 0 9

8

CHAIRMAN'S STATEMENT

Dear Shareholders,

On behalf of the Board of Directors, I am pleased to present toyou the Annual Report and Financial Statements of DSC SolutionsBerhad (DSC) for the nancial year ended 30 September 2009(FYE 2009).

THE YEAR UNDER REVIEW

DSChasperrmedsatisactrilyinwhathasbeenadicultyearinviewthe

ngingnancialcrisis.FrtheFYE2009,DSC revenue grew46% tRM3.13

millinrmRM2.14millinrecrdedinthepreviusnancialyear.Inlinewith

theimprvementinrevenue,DSChasrecrdedaprtatertaxatinRM2.34millinrepresenting28%grwthcmparedtRM1.82millinintheprevius

nancialyear.

SIGNIFICANT EVENTS

9thDecember2009markedanimprtantdateinurmilestneasDSCwasciallylistedntheACEMarketBursa

MalaysiaSecuritiesBerhad.DSCissued12,578,000newrdinarysharesRM0.10each(DSCShares)atanissueprice

RM0.50perDSCsharepursuanttthepublicissueandbnusissuene(1)newDSCsharetbeissuedandcredited

asullypaid-upreveryne(1)DSCshareheldaterthepublicissue.Theprceedsrmthepublicissuewereentirely

accruedtthecmpanyandisintendedtundingtheR&Dexpenditure,businessexpansin&capitalexpenditureand

aswrkingcapital.


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A n n u a l R e p r t 2 0 0 9

CHAIRMAN'S STATEMENT

RESEARCH & DEVELOPMENT (R&D)

DSCcntinuestbelievethatR&Disanessentialcmpnentreverysuccessulstwarecmpanyindrivingbusiness

grwthandimprvingperatinaleciency.Hence,rtheFYE2009,DSChasincurredanexpenditureapprximately

RM1.02millintembarkndevelpmentsnewintegratedAutmatedIdenticatinandDataCllectin(AIDC)slutins

andtimprvenurexistingprductsinrespnsetchangesinuserrequirementsandtechnlgicaldevelpment.

FORWARD PROSPECTS AND STRATEGIES

LeadersbthMalaysiaandSingaprehavestatedthatbthecnmieshaveturnedarundacrnerandarentrackr

arecvery.DSCremainscautiuslyptimisticanditherecverycmesquickly,wearepisedttakeulladvantageit.

Duringtheslwdwn,insteadmerelylkingatwaystcutcst,wealscusednbuildingupurcrecmpetencies

-especiallyinthe area IT.Wealscusednincreasingurcrecmpetenciesin areassuchas technicalandsales

supprt.

Gingrward,wewillcntinuetmanageurcstdiligentlyandinvestintlsthatseektincreaseurveralleciency

andprductivity.Weplantdmrewithless.Thiscannlybedneiwecntinuetinvestintechnlgyandtraining.

Weaimtraisetheskillsandcreativeptentialeverysta.Thiscannlybeachievediinvestinurpeple,upanddwn

theskillsladder.

Hwever,wecannlymakeurnextleapinprductivityieveryindividualtakestheinitiativetdevelphisskillsand

expertise,andaccmplishmreinhisjbandcareer.Wewillhavetempwerurstastndnewwaystcreatevalue,

andhelpunlckeverywrkersptential.

Weseektinvestinexpandingtheimmediatereginalmarketsandcntinuetleveragenurlwerperatingcstin

IskandarMalaysia,whereurMSCceislcated.Finally,thecmpanywillleveragenurcrestrengthsbuiltverthe

yearstcarveanicheintheservicessectrsespeciallyattheupcmingintegratedresrtsinSingapre.

CORPORATE GOVERNANCE

TheBardisstrnglycmmittedtwardsensuringhighstandardscrprategvernancepracticesinurdaytday

peratinsand management theGrup,in cmpliance withtheBestPractices theMalaysian Cde Crprate

Gvernance.

TheBardisgearedtwardsensuringmaximumsharehldersvalueandensuringthelngtermgrwththeGrupin

linewiththeapplicatintheprinciplesthesaidcde.ThemeasuresimplementedarehighlightedintheCrprate

GvernanceStatementinthisAnnualReprt.

APPRECIATION

IwuldliketexpressmyutmstappreciatinttheBardmembers,keymanagementanduremplyeesrtheirstrng

cmmitmentandendlesscntributin.Iwuldalslikettakethispprtunitytthankuraithulcustmers,business

assciates,bankersandsharehldersrtheircntinuedsupprtthusar.


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A n n u a l R e p r t 2 0 0 9

STATEMENT OF CORPORATE GOVERNANCE

TheBardDirectrsisullyacknwledgestheimprtancegdcrprategvernanceandiscmmittedttheestablishmentandimplementatinaprperramewrkandcntrlsthatareinlinewiththeprinciplesandbestpractices

assetutintheMalaysianCdenCrprateGvernance(Revised2007)(theCde).

TheBardispleasedtreprtntheextenttwhichtheprinciplesandbestpracticestheCdewereappliedthrughut

thenancialyearended30September2009.

A. BOARD OF DIRECTORS

Board Composition and Balance

Composition

TheBardcurrentlycmprisesseven(7)members,ur(4)areExecutiveDirectrsandthree(3)areIndependentNn-

ExecutiveDirectrs.ThecurrentBardcmpsitincmplieswiththeListingRequirementstheBursaMalaysiaSecuritiesBerhadrtheACEMarket.Thewidespectrumknwledge,skillsandexperiencetheBardgivesaddedstrengtht

theleadershipwhichisnecessaryrtheeectivestewardshiptheCmpany.

Board Balance

TheBard haswithinit,pressinalsdrawnrm variusbackgrunds;bringing in-depthanddiversityin experience,

expertiseandperspectivesttheCmpanysbusinessperatin.TheBardiscmprisedindividualswharecmmittedt

businessintegrityandpressinalisminallitsactivities.TheBardsupprtsthehigheststandardscrprategvernance

andthedevelpmentbestpracticesrtheGrup.

TheprlesthememberstheBardaresetutnpages4and7thisAnnualReprt.

Board Roles and Responsibilities

NindividualrgrupindividualsdminatestheBardsdecisin-making.Tgether,theDirectrspssessthewide

rangebusiness,cmmercialandnancialknwledge,expertiseandskillsessentialinthemanagementanddirectin

acrpratinwithreginalpresence.

TheExecutiveDirectrhastherespnsibilitytmanagetheday-tdayperatinsthebusiness,implementatinBard

pliciesandmakingstrategicdecisinsrtheexpansinthebusiness.TheNn-ExecutiveDirectrscntributetheir

expertiseandexperiencestgiveindependentjudgmentttheBardnissuesstrategy,perrmanceandresurces,

includingmajrplicies,keydirectinsandstandardscnduct.Theindependentdirectrsprvideguidance,unbiased,

ullybalancedandindependentviews,adviceandjudgmenttmanyaspectstheCmpanysstrategysastsaeguardthe

interestsminritysharehldersandtensurethathigherstandardscnductandintegrityaremaintainedbytheGrup.

AllIndependentDirectrsulllthedenitinIndependentDirectrsasstipulatedundertheListingRequirements.

Board Meetings

TherewasnBardmeetingheldduringthenancialyearended30September2009astheCmpanywasnlylistedn

theACEMarketBursaMalaysiaSecuritiesBerhadn9December2009.

Access to Inormation

TheagendatgetherwithrelevantBardPapersandreprtsarecirculatedtallDirectrsprirttheBardmeetings.These

PapersareissuedinsucienttimetenabletheDirectrstbtainurtherclaricatinandexplanatin,wherenecessary,

inrdertbeprperlybrieedberethemeeting.

Directrs,whetherasaullbardrintheirindividualcapacities,haveullandtimelyaccesstallrelevantinrmatinn

theGrupsbusinessesandaairstdischargetheirdutieseectively.Directrsalshavedirectaccessttheadviceand

servicestheCmpanySecretariesandtbtainindependentpressinaladvice,whenevernecessary,attheexpensethecmpany.


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A n n u a l R e p r t 2 0 0 9

Directors Training

Therehasbeengreaterawarenesstheimprtanceandbenetsattendingandparticipatinginthetrainingand

cntinuingtrainingprgrammethatwillenhancetheDirectrsknwledgeandskillsasteectivelydischargetheir

dutiesasDirectrs.

Tw(2)DirectrshavecmpletedtheMandatryAccreditatinPrgramme(MAP)asrequiredbyBursaSecurities.The

therFive(5)haveregisteredrtheMAPscheduledinMarch2010.

TheDirectrswillcntinuetattendrelevanttrainingprgrammestkeepabreastwithdevelpmentswithcntinuus

basisincmpliancethetheACEMarketListingRequirementsBursaSecurities.

Board Committees

TheBardhasdelegatedcertainrespnsibilitiesttheBardCmmittees,whichperatewithinclearlydenedtermsreerence.TheBardCmmitteesare:

a Audit Committee

Thecmpsitin,respnsibilitiesanddetailedtermsreerencearesetutseparatelyintheauditcmmitteereprt

npages14t16theannualreprt.

b Nomination Committee

TherletheNminatinCmmitteeistreviewannuallytherequiredmixskills,experienceandtherqualities

theDirectrsandtrecmmendnewappintment,iany,ttheBard.

ThememberstheNminatinCmmitteeareasllws:(i) DatDr.MhamedIbrahimbinAWahid(Chairman, Independent Non-Executive Chairman)

(ii) Mr.MukSaiTat(Member, Independent Non-Executive Director)

(iii) Mr.EdwardKhrYewHeng(Member, Independent Non-Executive Director)

c Remuneration Committee

TheRemuneratinCmmitteeisrespnsiblerthermulatinremuneratinplicysuchasrewardsandbenets

andthertermsemplymenttheExecutiveDirectr.

ThememberstheRemuneratinCmmitteeareasllws:

(i) Mr.EdwardKhrYewHeng(Chairman, Independent Non-Executive Director)

(ii) DatDr.MhamedIbrahimbinAWahid(Member, Independent Non-Executive Chairman)

(iii) Mr.MukSaiTat(Member, Independent Non-Executive Director)

Appointment and Reelection o Board Members

TheBardthrughtheNminatinCmmitteecntinuuslyreviewsitssizeandcmpsitinwithparticularcnsideratin

nitsimpactntheeectiveunctiningtheBard.BasedntheappraisaltheCmmittee,theBardbelievesthat

thecurrentcmpsitintheBardprvidestherequiredmixskillsandcrecmpetenciesrequiredrtheBardt

dischargeitsdutieseectively.

InaccrdancewiththeCmpanysArticlesAssciatin,allDirectrswhareappintedbytheBardaresubjecttelectin

bythesharehldersattheAnnualGeneralMeeting(AGM)llwingtheirappintment.TheArticlesAssciatinthe

Cmpanyalsprvidesthatne-third(1/3)thedirectrsshallretirebyrtatinrmceateachAGMandtheyshall

beeligiblerre-electinatsuchAGM.Inadditin,alldirectrsshallbesubjectedtretirementbyrtatinnceevery

three(3)years.



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A n n u a l R e p r t 2 0 0 9

B. DIRECTORS REMUNERATION

ThedirectrsremuneratinisdeterminedinaccrdancettheperrmanceandtheircapabilityttheCmpany.TheBard

recgnizesthatlevelsremuneratinmustbesucienttattract,retainandmtivatethedirectrsthequalityrequired

tmanagethebusinesstheCmpanyandtaligntheinteresttheDirectrswiththsethesharehlders.

DetailstheDirectrsremuneratinwhservedduringthenancialyearended30September2009aresetutbelw:

a Aggregate Remuneration by Category

Benetin

Fees Salaries Bonuses kind

RM RM RM RM

ExecutiveDirectrs 114,000 150,000

Nn-ExecutiveDirectrs

Total 114,000 150,000

b The number o Directors o the Company whose total remuneration alls within the ollowing bands:

Number o Directors

Range o remuneration Executive Directors NonExecutive Directors

RM250,001tRM300,000 1

C. INVESTORS RELATIONS AND SHAREHOLDERS COMMUNICATION

Dialogue between companies and Investors

ThecmpanyrecgnizestheimprtancekeepingthesharehldersandinvestrsinrmedtheCmpanysbusinessand

crpratedevelpments.Suchinrmatinisdisseminatedviathegrupsannualreprts,circularstsharehlders,quarterly

nancialresultsandthevariusannuncementsmadermtimettime.Allsharehlders,includingprivateinvestrs,havean

pprtunitytparticipateindiscussinswiththeBardnmattersrelatingtthegrupsperatinandperrmanceatthe

cmpanysannualgeneralmeeting.Alternatively,theymaybtainthecmpanyslatestannuncementsviathecmpanys

websiteatwww.dsc.cm.myrviatheBursaMalaysiaSecuritiesBerhadswebsiteatwww.bursamalaysia.cm.

Annual General Meeting

TheprinciplerumrdialguewithsharehldersisduringtheAnnualGeneralMeeting(AGM).AttheAGM,theBard

prvidespprtunitiesrsharehlderstraisequestinspertainingtissuesintheAnnualReprt,AuditedFinancial

Statements,crpratedevelpmentsintheGrup,thereslutinsbeingprpsedandnthebusinesstheGrupin

general.



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A n n u a l R e p r t 2 0 0 9

D. ACCOUNTABILITY AND AUDIT

Financial Reporting

TheBardaimstpresentabalancedandmeaningulassessmenttheCmpanysnancialperrmanceandprspects

thrughtheannualauditednancialstatementsandquarterlynancialreprtstitsstakehlders,inparticular,sharehlders,

investrsandtheregulatryauthrities.

Inpreparingthenancialstatements,theDirectrsarerequiredtselectapprpriateaccuntingplicies,cnsistently

appliedandsupprtedbyreasnableandprudentjudgmentsandestimates.TheDirectrshaverespnsibilityrensuring

thattheCmpanykeepsprperaccuntingrecrdswhichdisclsewithaccuracyatanytimethenancialpsitinthe

CmpanywhichenablesthemtensurethatthenancialstatementscmplywiththeCmpaniesAct,1965.TheDirectrs

alshaverespnsibilityrtakingsuchstepsasarereasnabletsaeguardtheassetstheGruprpreventinand

detectinraudandtherirregularities.

TheStatementDirectrsRespnsibilityrpreparingAnnualAuditedFinancialStatementspursuanttParagraph15.26(a)

theListingRequirementsBursaSecuritiesissetutnpage18thisAnnualReprt.

Internal Control

TheBardacknwledgestheirrespnsibilityinmaintaininganinternalcntrlsystemthatprvidesreasnableassurance

eectiveand ecientperatins,and cmpliancewithlaws andregulatinsas well asinternal prceduresand

guidelines.

Itisrecgnizedthatcertainrisksandthreatsareexternallydriven,unreseenandbeyndtheCmpanyscntrl,thesystem

cannlyprvidereasnableassuranceagainstmisstatementrlss.

TheStatementnInternalCntrlsetutnpage17thisAnnualReprtprvidesanverviewthestateinternalcntrlswithintheGrup.

Relationship with Auditors

TherletheAuditCmmitteeinrelatinttheexternalauditrsisdisclsedintheAuditCmmitteeReprtsetutn

pages14t16thisAnnualReprt.TheCmpanysindependentexternalauditrsllanessentialrlerthesharehlders

byenhancingthereliabilitytheCmpanysnancialstatementsandgivingassurancethatreliabilitytusersthese

nancialstatements.TheexternalauditrshaveanbligatintbringanysignicantdeectsintheCmpanyssystem

cntrlandcmpliancettheattentinthemanagement;andinecessary,ttheauditcmmitteeandtheBard.



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A n n u a l R e p r t 2 0 0 9

TheprinciplebjectivesAuditCmmitteeistassisttheBardindischargingitsstatutrydutiesandrespnsibilitiesinrelatintcrprategvernance,internalcntrlsystems,managementandnancialreprtingpracticestheCmpanyandtensureprperdisclsuretthesharehlderstheCmpany.

MEMBERS

ThecurrentmemberstheAuditCmmitteeareasllws:

Mr. Muk Sai Tat

(Chairman, Independent Non-Executive Director)

Dato Dr. Mohamed Ibrahim bin A Wahid

(Member, Independent Non-Executive Chairman)

Mr. Edward Khor Yew Heng(Member, Independent Non-Executive Director)

MEETINGS AND ATTENDANCE

Therewasnmeetingheldduringthenancialyearended30September2009astheCmpanywasnlylistedntheACEmarketBursaMalaysiaSecuritiesBerhadn9December2009.

TERMS OF REFERENCE

Thellwingisthetermsreerencetheauditcmmittee:-

Membership

1. TheCmmitteeshallbeappintedbytheBardrmamngitsmembersandshallcmprisentlessthanthree(3)members,wherebyallmembersmustbenn-executivedirectrsandnanciallyliteratewithamajritythembeingIndependentDirectrs,andatleastne(1)membertheCmmittee:-

a) mustbeamembertheMalaysianInstituteAccuntants;r

b) iheisntamembertheMalaysianInstituteAccuntants,hemusthaveatleastthree(3)yearswrkingexperienceand:-

i. hemusthavepassedtheexaminatinsspeciedinPartIthe1stScheduletheAccuntantsAct1967;r

ii. hemustbeamembernetheassciatinsaccuntantsspeciedinPartIIthe1stScheduletheAccuntantsAct1967;r

c) ullssuchtherrequirementsasprescribedrapprvedbytheBursaMalaysiaSecuritiesBerhad.

2. AlternateDirectrshallntbeappintedasamembertheCmmittee.

3. TheCmmitteeshallelectaChairmanrmamngitsmembersandtheelectedChairmanshallbeanIndependentDirectr.

4. Intheevent,theelectedChairmanisntabletattendameeting,theremainingmemberspresentshallelectnethemselvesasChairmanrthemeeting.TheelectedChairmanshallbeanIndependentDirectr.

5. IamembertheAuditCmmitteeresigns,retires,diesrranytherreasnceasestbeamemberwhichresultinginthenn-cmpliancewithpint1abve,theBardshallllthevacancywithinthree(3)mnths.

6. TheBardshallreviewthetermceandperrmancetheCmmitteeandeachmemberatleastnceeverythree(3)years.

AUDIT COMMITTEE REPORT


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A n n u a l R e p r t 2 0 0 9

Frequency o meetings

1. Meetingsshallbeheldntlessthanur(4)timesayear.Hwever,additinalmeetingsmaybecalledatanytime

dependingnthescpeactivitiestheCmmittee.IntheeventissuesrequiringtheCmmitteesdecisin

arisebetweenmeetings,suchissuesshallbereslvedthrughcircularreslutinstheCmmittee.Suchcircular

reslutininwritingshallbevalidandeectualiitissignedrapprvedbyletter,acsimileranyelectrnicmeans

byallmemberstheCmmittee.

2. otherBardmembers,Senirmanagement,InternalandExternalauditrsmaybeinvitedtattendmeetings.

3. TheCmmitteeshuldmeetwiththeexternalauditrswithutthepresenceexecutivebardmembersatleast

twiceinanancialyear.

4. Prirnticeshallbegivenrallmeetings.

Quorum

Theminimumqurumrthemeetingistw(2)members theCmmittee,amajritymemberspresentmustbe

independentandNn-ExecutiveDirectrs.

Secretary

TheCmpanySecretaryshallbethesecretarytheCmmittee.TheSecretaryshallcirculatethenticeandminutesthe

CmmitteetallmembersBard.

Functions

TheunctinstheCmmitteeareasllws:-

i) Tcnsidertheappintmentexternalauditrs,theauditeeandanyquestinsresignatinrdismissal.

ii) Treviewwiththeexternalauditrs:

a) theauditplan,scpeandnaturetheaudittheCmpanyanditssubsidiaries(Grup);

b) theirevaluatinandndingsthesysteminternalcntrls;andtheauditreprtsnthenancial

statements.

iii) Treviewtheadequacythescpe,unctin,cmpetencyandresurcesinternalauditandtensurethatithas

thenecessaryauthritytcarryitswrk.

iv) Treviewanyappraisalrassessmenttheperrmancetheinternalauditunctinsandtheinternalauditunctin

shuldreprtsdirectlyttheCmmittee.

v) Treviewthequality,adequacyandeectivenesstheGrupsinternalcntrlenvirnment.

vi) Treviewthendingstheinternalandexternalauditrs.

vii) TreviewthequarterlyandyearendnancialstatementstheGrup,cusingparticularlynanychangesinr

implementatinmajraccuntingpliciesandpractices,signicantadjustmentsarisingrmtheaudit,theging

cncernassumptinandcmpliancewithapplicableapprvedaccuntingstandardsandtherlegalandregulatry

requirements.

viii) TreviewanyrelatedpartytransactinsandcnfictsinterestsituatinthatmayarisewithintheGrupincluding

anytransactins,prceduresrcursecnductthatraisesquestinsmanagementintegrity.

ix) Treviewtheexternalauditrsmanagementletterandmanagementsrespnse.



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A n n u a l R e p r t 2 0 0 9

x) TreviewandveriytheallcatinptinspursuantttheEmplyeesShareoptinScheme(ESoS)incmpliancewiththecriteriaasstipulatedintheby-lawESoStheGrup,iany.

xi) AnytherunctinthatmaybemutuallyagreedupnbytheCmmitteeandtheBardwhichwuldbebenecial

ttheCmpanyandensuretheeectivedischargetheCmmitteesdutiesandrespnsibilities.

Authority

TheCmmitteeisauthrisedbytheBardtinvestigateanyactivitywithinitstermreerenceatthecsttheCmpany,

t:-

i) secureullandunrestrictedaccesstanyinrmatinpertainingttheCmpanyanditssubsidiaries(theGrup).

ii) cmmunicatedirectlywiththeexternalandinternalauditrsandallemplyeestheGrup.

iii) seekandbtainindependentpressinaladviceandtsecuretheattendanceutsiderswithrelevantexperience

andexpertiseasitcnsidersnecessary.

iv) cnvenemeetingswiththeexternalandinternalauditrsrbthexcludingtheattendancetherdirectrsand

emplyeesthecmpany,wheneverdeemednecessary.

SUMMARY OF ACTIVITIES DURING THE FINANCIAL YEAR

Therewasnactivitiescarriedutduringthenancialyearended30September2009astheCmmitteewasnlyrmed

n26octber2009.

INTERNAL CONTROL REVIEW AND INTERNAL AUDIT FUNCTION

TheGruphadappintedanindependentinternalcntrlcnsultantstcarryutareviewthesysteminternalcntrl

andriskassessmenttheGrupinrelatinttheListingtheCmpanyntheACEMarketBursaSecurities.Theinternal

cntrlreviewhasbeenundertakentensurethattheGrup,inallmaterialsrespectshasestablishedprcedures,systems

andcntrlswhichareadequatehavingregardtthebligatinstheGrupanditsdirectrstcmplywithrelevant

legalandregulatryrequirementsandwhicharesucienttenabletheGrupsdirectrstmakeaprperassessment

thenancialpsitinandprspectstheGrup,bthbereandaterlisting.

TheGruphasrecentlyengagedapressinalrmtprvideutsurcedinternalauditservicesrtheGrup.



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A n n u a l R e p r t 2 0 0 9

INTRODUCTION

Pursuanttparagraph15.26(b)BursaMalaysiaSecuritiesBerhad(BursaSecurities)ACEMarketListingRequirements,theBardDirectrs(theBard)DSCSlutinsBerhad(theCmpany)ispleasedtprvidethellwingstatementn

thestateinternalcntrltheCmpany,whichhasbeenpreparedinaccrdancewiththeStatementInternalCntrl:

GuidancerDirectrsPublicListedCmpaniesissuedbytheInstituteInternalAuditrsMalaysiaandasadptedby

BursaSecurities.

BOARD RESPONSIBILITY

TheBardisrespnsiblermaintainingasundsysteminternalcntrltsaeguardsharehldersinvestmentsandthe

Cmpanysassets,andrreviewingtheadequacyandintegritythesystem.Thesysteminternalcntrlcversnt

nlynancialcntrlsbutperatinalandcmpliancecntrlsandriskmanagement.

Thesysteminternalcntrlisdesignedtmanageratherthaneliminatetheriskailuretachievebusinessbjectives,

andinherentlyitcannlyprvidereasnableandntabsluteassuranceagainstmaterialmisstatementrlss.

TheBardcnrmsthatthereisaninrmaln-gingprcessridentiying,evaluatingandmanagingthesignicantrisks

acedbytheCmpanyrthenancialyearunderreviewanduptdateapprvaltheannualreprtandnancialstatements.

OTHER KEY AREAS OF INTERNAL CONTROL

1. TheGruphas inplace anrganizatinalstructurethatsupprtsbusinessandperatinalrequirements,withclearlydenedlevelsrespnsibilities,linesaccuntabilityanddelegatedauthritywithapprpriatereprting

prcedures.

2. DcumentedguidelinesnperatingprcedureshavebeenadptedbytheCmpany,ensuresclearaccuntability

andcntrlprceduresareinplacerallperatingunits.3. TheExecutiveDirectrsareinvlvedintheday-t-daybusinessperatinstheGrup.Scheduledinrmalperatinal

andmanagementmeetingsareheldwithsenirmanagementtidentiy,discussandreslvebusinessandperatinalissues.SignicantmattersidentiedduringthesemeetingsarehighlightedttheBard.

Theimprvementthesysteminternalcntrlsisann-gingprcessandtheBardmaintainsn-gingcmmitment

tstrengthentheCmpanyscntrlenvirnmentandprcesses.

RISK MANAGEMENT

TheBardrecgnizesthatidenticatin,evaluatinandmanagementsignicantrisksacedbytheCmpanyarean

ngingprcess.

TheBardreviewsinternalcntrlissuesidentiedbythemanagementandevaluatestheadequacyandeectivenesstheCmpanysriskmanagementandinternalcntrlsystem.

INTERNAL AUDIT

TheCmpanyadptsarisk-basedapprachttheimplementatinandmnitringrelevantinternalcntrls.The

ExecutiveDirectrscnductbriengandinterviewnriskassessmenttidentiysignicantcncernsandrisksperceived

bytheSenirManagement.

CONCLUSION

Duringthenancialyearunderreview,the Bardis ntaware anyissueswhichwuldresultin anymateriallsses,

decienciesrerrrsarisingrmanyinadequacyrailuretheCmpanyssysteminternalcntrlthatwuldrequire

disclsureintheCmpanysAnnualReprt.Themanagementwillcntinuettakemeasureststrengthenthecntrlenvirnment.

STATEMENT ON INTERNAL CONTROL


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A n n u a l R e p r t 2 0 0 9

STATEMENT OF DIRECTORS RESPONSIBILITY

TheDirectrsarerequiredbytheCmpaniesAct,1965(Act)tpreparenancialstatementsreachnancialyear,whichgiveatrueandairviewthestateaairstheGrupandtheCmpanyattheendthenancialyearandthe

resultsandcashfwstheGrupandtheCmpanyrthenancialyearthenended.

TheDirectrscnsider that,in preparingthenancialstatementsrthenancialyearended30 September2009,the

Cmpanyhasusedapprpriateaccuntingpliciesandappliedthemcnsistentlyandmadejudgementsandestimates

thatarereasnableandprudent.TheDirectrsalscnsiderthatallapplicableapprvedaccuntingstandardshavebeen

llwedandcnrmthatthenancialstatementshavebeenpreparednagingcncernbasis.

TheDirectrsarerespnsiblerensuringthattheGrupandtheCmpanykeepaccuntingrecrdswhichdisclsewith

reasnableaccuracyatanytimethenancialpsitintheGrupandtheCmpanyandwhichenablethemtensure

thatthenancialstatementscmplywiththeActandMASBApprvedAccuntingStandardsinMalaysiarEntitiesother

ThanPrivateEntities.


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A n n u a l R e p r t 2 0 0 9

1. UTILISATION OF PROCEEDS TheGrupraisedRM6.289millinrmitsInitialPublicoeringntheACEMarketBursaMalaysiaSecuritiesBerhad

n9December2009.Thestatustheutilisatintheprceedsraisedasat31December2009isasllws:

Proposed Amount AmountAmount Utilised Unutilised

Purpose RM'000 RM'000 RM'000

WrkingCapital 1,389 500 889BusinessExpansin 1,400 1,400R&DExpenditure 1,800 638 1,162ListingExpenses 1,700 1,572 128*

6,289 2,710 3,579

* Inviewtheactuallistingexpenseswerelwerthanestimated,theexcesswillbeutilisedrwrkingcapital

purpses

2. SHARE BUY-BACKS

Therewerensharebuy-backarrangementsduringthenancialyear.

3. OPTIONS, WARRANTS OR CONVERTIBLE SECURITIES

Therewerenptins,warrantsrcnvertiblesecuritiesexercisedinrespectthenancialyear.

4. DEPOSITORY RECEIPT (DR)

ThecmpanydidntspnsranyDRprgrammesduringthenancialyear.

5. IMPOSITION OF SANCTIONS / PENALTIES

Therewerenpublicimpsitinssanctinsrpenaltiesimpsednthecmpanyanditssubsidiaries,directrsrmanagementbytheregulatrybdiesduringthenancialyear.

6. NON-AUDIT FEES

Therewasnnn-auditeespaidttheexternalauditrsbythegruprthenancialyearended30September2009.

7. VARIATION IN RESULTS

Therewerenmaterialvarianceintheauditedresultsrmtheunauditedresultsannuncedrthenancialyearunderreview.

8. PROFIT GUARANTEE

Thecmpanydidntgiveanyrmprtguaranteetanypartiesduringthenancialyear.

9. MATERIAL CONTRACTS

TherewerenandmaterialcntractsenteredbythecmpanyanditssubsidiariesinvlvingDirectrsandsubstantialsharehldersinterestduringthenancialyear.

10. REVALUATION POLICY ON LANDED PROPERTY

TheGrupdesnthavearevaluatinplicyinrespecttheGrupsprperties.

11. RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE AND TRADING NATURE

Therewerenrecurrentrelatedpartytransactinsenteredintinthenancialyear.

12. CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES AND PRACTICES

TheBardrecgnizestheimprtancebeingarespnsiblecrpratecitizentenhanceandpsitivelycntribute

tsciety.AlthughnCSRactivitieshavebeencarriedutduringthenancialyear,theGrupwillbelkingatimplementingthebestpracticesCSRin areas envirnment,cmmunity,wrkplace andmarketplacein thecmingyears.

ADDITIONAL COMPLIANCE INFORMATION


21/53

nancial

statements21 DirectrsReprt

24 StatementbyDirectrsandStatutryDeclaratin

25 IndependentAuditrsReprt

26 BalanceSheet

27 IncmeStatement

28 StatementChangesinEquity

29 CashFlwStatement

30 NtesttheFinancialStatements


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A n n u a l R e p r t 2 0 0 9

TheDirectrshavepleasureinsubmittingtheirreprttgetherwiththeauditednancialstatementstheCmpanyrthenancialyearended30September2009.

PRINCIPAL ACTIVITY

TheCmpanyisprincipallyengagedindevelpmentandprvisinstwareandengineeringcnsultancyrAutmated

IdenticatinandDataCllectin(AIDC)andinvestmenthldingcmpany.

Therehavebeennsignicantchangesinthenaturetheseactivitiesduringthenancialyear.

FINANCIAL RESULTS

RM

Prtrthenancialyear 2,339,941

DIVIDENDS

TherewerendividendspaidrdeclaredbytheCmpanysincetheendthepreviusnancialyear.

RESERVES AND PROVISIONS

Therewerenmaterialtranserstrrmreservesrprvisinsduringthenancialyear.

ISSUE OF SHARES AND DEBENTURES

Therewerensharesrdebenturesissuedduringthenancialyear.

Subsequenttthebalancesheetdate,theCmpanyincreaseditsissuedandullypaidupsharecapitalrmRM2cmprising

20rdinarysharesRM0.10eachtRM10,400,000cmprising104,000,000rdinarysharesRM0.10eachasdisclsed

inNte19ttheFinancialStatements.

INFORMATION ON THE FINANCIAL STATEMENTS

BerethenancialstatementstheCmpanyweremadeut,theDirectrstkreasnablesteps:-

(a) tascertainthatactinhadbeentakeninrelatintthewritingbaddebtsandthemakingallwancer

dubtuldebtsandsatisedthemselvesthattherewerenbaddebtstbewrittenandnallwancerdubtul

debtswasrequired;and

(b) tensurethatanycurrentassetswhichwereunlikelytberealisedintherdinarycursebusinessincludingtheir

valueasshwnintheaccuntingrecrdstheCmpanyhavebeenwrittendwntanamuntwhichtheymight

beexpectedstrealise.

Atthedatethisreprt,theDirectrsarentawareanycircumstances:-

(a) whichwuldrenderitnecessarytwriteanybaddebtsrtmakeanyallwancerdubtuldebtsinthenancial

statementstheCmpany;r

(b) whichwuldrenderthevaluesattributedtcurrentassetsinthenancialstatementstheCmpanymisleading;

r

DIRECTORS REPORT


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A n n u a l R e p r t 2 0 0 9

(c) whichhavearisenwhichrenderadherencettheexistingmethdvaluatinassetsrliabilitiestheCmpanymisleadingrinapprpriate.

Ncntingentrtherliabilityhasbecmeenrceablerislikelytbecmeenrceablewithintheperidtwelve

mnthsatertheendthenancialyearwhich,inthepinintheDirectrs,willrmayaecttheabilitytheCmpany

tmeetitsbligatinsasandwhentheyalldue.

Atthedatethisreprt,theredesntexist:-

(a) anychargentheassetstheCmpanywhichhasarisensincetheendthenancialyearwhichsecurestheliability

anytherpersn;r

(b) anycntingentliabilitytheCmpanywhichhasarisensincetheendthenancialyear.

OTHER STATUTORY INFORMATION

TheDirectrsstatethat:-

Atthedatethisreprt,theyarentawareanycircumstancesnttherwisedealtwithinthisreprtrthenancial

statementswhichwuldrenderanyamuntstatedinthenancialstatementsmisleading.

InthepinintheDirectrs:-

(a) theresultsperatins theCmpanyduringthenancialyearwerentsubstantiallyaectedbyanyitem,

transactinreventamaterialandunusualnature;and

(b) therehasntarisenintheintervalbetweentheendthenancialyearandthedatethisreprtanyitem,transactinreventamaterialandunusualnaturelikelytaectsubstantiallytheresultsperatinstheCmpanyr

thecurrentnancialyearinwhichthisreprtismade.

DIRECTORS

TheDirectrsincesincethedatethelastreprtareasllws:-

SeahLiangChiang (Managing Director)

ChuaYckPeng(Executive Director)

WngEeSing(Executive Director)

DatDr.MhamedIbrahimBinAWahid (Independent Non-Executive Chairman) (appointed on 26.10.2009)

LengSingWeng(Executive Director) (appointed on 26.10.2009)

MukSaiTat(Independent Non-Executive Director) (appointed on 26.10.2009)

EdwardKhrYewHeng(Independent Non-Executive Director) (appointed on 26.10.2009)

AccrdingttheRegisterDirectrssharehldings,thebenecialinterestthsewhwereDirectrsattheendthe

nancialyearinthesharestheCmpanyasllws:-

Ordinary shares o RM1 each

At At

1.10.2008 Bought Sold 30.9.2009

SeahLiangChiang 1 1

NtherDirectrsattheendthenancialyearheldanyinterestinsharestheCmpanyanditsrelatedcrpratin

duringthenancialyear.

DIRECTORS REPORT


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A n n u a l R e p r t 2 0 0 9

SIGNIFICANT EVENTS

ThesignicanteventsduringthenancialyearandsubsequenttthebalancesheetdatearedisclsedinNte19tthe

FinancialStatements.

DIRECTORS BENEFITS

Duringandattheendthenancialyear,narrangementssubsistedtwhichtheCmpanyisaparty,withthebjectr

bjectsenablingDirectrstheCmpanytacquirebenetsbymeanstheacquisitinsharesintheCmpanyr

anytherbdycrprate.

Sincetheendthepreviusnancialyear,nDirectrshasreceivedrbecmeentitledtreceiveanybenetbyreasn

acntractmadebytheCmpanyrarelatedcrpratinwiththeDirectrrwitharmwhichheisamember,r

withacmpanyinwhichhehasasubstantialnancialinterest.

AUDITORS

MessrsSJGrantThrntnhaveexpressedtheirwillingnesstcntinueince.

onbehaltheBard

........................................................................................... )

SEAHLIANGCHIANG )

)

)

)

)

) DIRECToRS

)

)

)

)

........................................................................................... )

CHUAYoCKPENG )

KualaLumpur

20January2010

DIRECTORS REPORT


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A n n u a l R e p r t 2 0 0 9

InthepinintheDirectrs,thenancialstatementssetutnpages26t46aredrawnupinaccrdancewithFinancialReprtingStandardsandtheCmpaniesAct,1965inMalaysiasastgiveatrueandairviewthenancialpsitin

theCmpanyasat30September2009anditsnancialperrmanceandcashfwstheCmpanyrthenancialyear

thenended.

onbehaltheBard

............................................................................................... ...........................................................................................

SEAHLIANGCHIANG CHUAYoCKPENG

KualaLumpur20January2010

STATUTORY DECLARATION

I,SeahLiangChiang,beingtheDirectrprimarilyrespnsiblerthenancialmanagementDSCSlutinsBerhad,d

slemnlyandsincerelydeclarethattthebestmyknwledgeandbelie,thenancialstatementssetutnpages26

t46arecrrectandImakethisslemndeclaratincnscientiuslybelievingthesametbetrueandbyvirtuethe

prvisinstheStatutryDeclaratinsAct,1960.

Subscribedandslemnlydeclaredby )

theabvenamedatKualaLumpurin )

theFederalTerritrythisday )

20January2010 ) ........................................................................

SEAHLIANGCHIANG

Bereme:

Cmmissinerroaths

STATEMENT BY DIRECTORS


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REPORT ON THE FINANCIAL STATEMENTS

WehaveauditedthenancialstatementsDSCSlutinsBerhad,whichcmprisethebalancesheettheCmpanyasat30September2009,andtheincmestatement,statementchangesinequityandcashfwstatementtheCmpanyrthenancialyearthenended,andasummarysignicantaccuntingpliciesandtherexplanatryntes,assetutnpages26t46.

Directors Responsibilities or the Financial Statements

ThedirectrstheCmpanyarerespnsiblerthepreparatinandairpresentatinthesenancialstatementsinaccrdance withFinancialReprting Standardsandthe CmpaniesAct,1965in Malaysia.Thisrespnsibilityincludes:designing,implementingandmaintaininginternalcntrlrelevanttthepreparatinandairpresentatinnancialstatementsthatarereermmaterialmisstatement,whetherduetraudrerrr;selectingandapplyingapprpriateaccuntingplicies;andmakingaccuntingestimatesthatarereasnableinthecircumstances.

Auditors Responsibilities

ourrespnsibilityis texpressan pininn these nancialstatementsbasednur audit.Wecnductedurauditinaccrdancewithapprvedstandardsnauditingin Malaysia.Thsestandardsrequire thatwecmplywithethicalrequirementsandplanandperrmtheaudittbtainreasnableassurancewhetherthenancialstatementsarereermmaterialmisstatement.

Anauditinvlvesperrmingprcedurest btainauditevidenceabuttheamuntsanddisclsuresinthe nancial

statements.Theprceduresselecteddependnurjudgement,includingtheassessmentrisksmaterialmisstatementthenancialstatements,whetherduetraudrerrr.Inmakingthseriskassessments,wecnsiderinternalcntrlrelevantttheCmpanyspreparatinandairpresentatinthenancialstatementsinrdertdesignauditprceduresthatareapprpriateinthecircumstances,butntrthepurpseexpressinganpininntheeectivenesstheCmpanysinternalcntrl.Anauditalsincludesevaluatingtheapprpriatenessaccuntingpliciesusedandthereasnableness

accuntingestimatesmadebythedirectrs,aswellasevaluatingtheverallpresentatinthenancialstatements.

Webelievethattheauditevidencewehavebtainedissucientandapprpriatetprvideabasisrurauditpinin.

Opinion

Inurpinin,thenancialstatementshavebeenprperlydrawnupinaccrdancewithFinancialReprtingStandardsandtheCmpaniesAct,1965inMalaysiasastgiveatrueandairviewthepsitintheCmpanyas30September2009anditsnancialperrmanceandcashfwsrthenancialyearthenended.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

InaccrdancewiththerequirementstheCmpaniesAct,1965inMalaysia,wealsreprtthatinurpinin,the

accuntingandtherrecrdsandtheregistersrequiredbytheActtbekeptbytheCmpanyhavebeenprperlykeptinaccrdancewiththeprvisinstheAct.

OTHER MATTERS

ThisreprtismadeslelytthememberstheCmpany,asabdy,inaccrdancewithSectin174theCmpaniesAct,1965inMalaysiaandrntherpurpse.Wedntassumerespnsibilitytanytherpersnrthecntentthisreprt.

SJ GRANT THORNTON DATO N. K. JASANI

(No.AF:0737) CHARTEREDACCoUNTANTCHARTEREDACCoUNTANTS (No:708/03/10(J/PH))

KualaLumpur 20January2010

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OFDSC SOLUTIONS BERHAD


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Note 2009 2008RM RM

SHARECAPITAL 6 2 2

UNAPPRoPRIATEDPRoFIT 5,250,924 2,910,983

Ttalsharehlders'equity 5,250,926 2,910,985

Representedby:-

NoN-CURRENTASSET

Develpmentcsts 7 784,653 359,325

CURRENTASSETS

Tradereceivables 8 3,950,498 2,254,163

otherreceivables 9 760,994 324,879

Cashandbankbalances 13,366 3,438

Ttalcurrentassets 4,724,858 2,582,480

LESS:CURRENTLIABILITIES

Tradepayables 10 10,150

otherpayables 11 258,585 20,670

Ttalcurrentliabilities 258,585 30,820

NETCURRENTASSETS 4,466,273 2,551,660

5,250,926 2,910,985

Theaccmpanyingntesrmanintegralpartthenancialstatements.

BALANCE SHEETASAT30SEPTEMBER2009


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Note 2009 2008RM RM

Revenue 12 3,129,404 2,136,430

Cstsales (591,988) (285,990)

Grssprt 2,537,416 1,850,440

Administratinexpenses (190,666) (26,014)

otherexpenses (6,809) (465)

Prtberetaxatin 13 2,339,941 1,823,961

Taxatin 14

Prtrthenancialyear 2,339,941 1,823,961

Attributablet:-

EquityhlderstheCmpany 2,339,941

Earningspershareattributabletequityhlders

theCmpany

-Basic(RM) 15 1,169,970.50


INCOME STATEMENTFoRTHEFINANCIALYEARENDED30SEPTEMBER2009


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Share Unappropriatedcapital prot Total

RM RM RM

Balanceat1octber2007 2 1,087,022 1,087,024


Balanceat30September2008 2 2,910,983 2,910,985


Balanceat30September2009 2 5,250,924 5,250,926


STATEMENT OF CHANGES IN EQUITYFoRTHEFINANCIALYEARENDED30SEPTEMBER2009


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2009 2008RM RM

CASH FLOWS FROM OPERATING ACTIVITIES

Prtberetaxatin 2,339,941 1,823,961

Adjustment or:

Amrtisatindevelpmentcsts 591,988 285,990

operatingprtberewrkingcapitalchanges 2,931,929 2,109,951

Changesinwrkingcapital:-

Receivables (2,132,450) (1,226,873)

Payables 227,765 (545,516)

Cashgeneratedrmperatins/Netcashrm

peratingactivities 1,027,244 337,562

CASH FLOWS FROM INVESTING ACTIVITY

Paymentrdevelpmentcsts (1,017,316) (379,126)

Netcashusedininvestingactivity (1,017,316) (379,126)

CASH AND CASH EQUIVALENTS

Netincrease/(decrease) 9,928 (41,564) Brughtrward 3,438 45,002

Carriedrward 13,366 3,438


CASH FLOW STATEMENTFoRTHEFINANCIALYEARENDED30SEPTEMBER2009


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1. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

ThenancialstatementstheCmpanyhavebeenpreparedinaccrdancewiththeCmpaniesAct,1965inMalaysia

andFinancialReprtingStandardsissuedbyMalaysianAccuntingStandardsBard(MASB).

2. FLOATATION EXERCISE

Asanintegralpartthelistingandqutatinrtheentireenlargedissuedandpaid-upsharecapitalthe

Cmpany(reertDSC),DSCGrup(reertDSCSlutinsBerhad,DigitalScanningCrpratinPte.Ltd.andDSC

Systems(M)SdnBhd)undertktheFltatinExercisethatwasapprvedbytheSecuritiesCmmissin(SC)n28

Nvember2008,extendedvideitsletterdated26May2009until31December2009timplementthePublicIssue

andvariedthrughitsletterdated23octber2009.TheFltatinExerciseinvlvesthellwing:-

i Subdivision o Shares

TheCmpanysub-dividedtheparvaluetherdinarysharesRM1.00eachintten(10)newShares.Upn

cmpletintheSub-divisinShares,theissuedandpaid-upsharecapitaltheCmpanywillbeRM2

cmprising20Shares.

Thesub-divisinshareswascmpletedn23octber2009.

ii Acquisitions o Subsidiary Companies

(a) Acquisitintheentireissuedandpaid-upsharecapitalDigitalScanningCrpratinPte.Ltd.

(DIGITAL)cmprising1,038,745rdinaryshareswhichrepresents100%equityinterestinDIGITALr

attalpurchasecnsideratinRM3,774,128tbewhllysatisedthrughtheissuance37,741,280

newDSCShares;and

(b) Acquisitintheentireissuedandpaid-upsharecapitalDSCSystemsSdn.Bhd.(DSCM)cmprising

200,000rdinarysharesRM1.00eachwhichrepresents100%equityinterestinDSCMrattal

purchasecnsideratinRM168,070tbewhllysatisedthrughtheissuance1,680,700newDSC

Shares.

(c) Renunciatinrightstthealltment8,320,000DSCsharesarisingrmthealltmentnewshares

tbeissuedrtheAcquisitinDIGITAL,representing16.00%theenlargedandpaid-upsharecapital

DSCaterthePublicIssuetkeyemplyeestheDSCGrup.

TheabveAcquisitinswerecmpletedn23octber2009.

iii Public Issue

PublicIssue12,578,000newDSCSharesatanissuepriceRM0.50perDSCShare.

TheSharesshallbeallcatedtprspectiveinvestrsinthellwingmanner:-

(a) GeneralPublic

1,000,000DSCSharesrepresenting1.92%theenlargedissuedandpaid-upcapitalaterPublicIssue

willbemadeavailablerapplicatinbytheGeneralPublic;

(b) EligibleDirectorsandemployees

500,000DSCSharesrepresenting0.96%theenlargedissuedandpaid-upcapitalaterthePublic

IssuewillbereservedrapplicatinbytheeligibleDirectrsandemplyees;and

NOTES TO THE FINANCIAL STATEMENTS30SEPTEMBER2009


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2. FLOATATION EXERCISE (CONTD)

iii Public Issue cont'd

(c) Privateplacement

11,078,000DSCSharesrepresenting21.30%theenlargedissuedandpaid-upcapitalaterthePublic

Issuewillbemadeavailablerapplicatinbywayprivateplacementtidentiedinvestrs.

TheabvePublicIsuuewerecmpletedn2December2009.

iv Bonus Issue

BnusIssue52,000,000newDSCSharestbeissuedandcreditedasullypaid-upnthebasisne(1)

newDSCSharereveryne(1)DSCShareheldaterPublicIssue.

TheabveBnusIssuewascmpletedn2December2009.

v Listing and Quotation on the ACE Market o Bursa Malaysia Securities Berhad

IncnjunctinwiththeFltatinExercise,theCmpanyseekstheadmissinandthelistingandqutatin

rtheentireenlargedissuedandpaid-upsharecapitalDSCcmprising104,000,000DSCSharesnthe

ocialListtheACEMarketBursaMalaysiaSecuritiesBerhad.

on9December2009,theCmpanywaslistedandqutedntheACEMarketBursaMalaysiaSecurities

Berhad.

ThegrssprceedsarisingrmthePublicIssueamuntingtRM6,289,000areexpectedtbeullyutilised

rthecrebusinessDSCGrupinthellwingmanner:-

RM000

ResearchandDevelpmentcsts 1,800

Businessexpansinandcapitalexpenditure 1,400

Wrkingcapital 1,389

Listingexpenses 1,700

6,289

ThelistingexpensesareestimatedatRM1,700,000andwillbesetagainstthesharepremiumaccuntandunapprpriatedprtaccunt.

3. FINANCIAL RISK MANAGEMENT POLICIES

TheCmpanysnancialriskmanagementplicyseekstensurethatadequatenancialresurcesareavailabler

thedevelpmenttheCmpanysbusinesswhilstmanagingitsrisks.TheCmpanyperateswithinpliciesthat

areapprvedbytheBardDirectrsandtheCmpanysplicyisnttengageinspeculativetransactins.



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3. FINANCIAL RISK MANAGEMENT POLICIES (CONTD)

ThemainareasnancialrisksacedbytheCmpanyandthepliciesinrespectthemajrareastreasuryactivity

aresetutasllws:-

3.1 Foreign currency risk

TheCmpanyisexpsedtreigncurrencyriskasaresultitsnrmalperatingactivitieswherethecurrency

denminatindiersrmthelcalcurrency,RinggitMalaysia(RM).TheCmpanysplicyistminimisethe

expsurereigncurrencyriskbymatchinglcalcurrencyincmeagainstlcalcurrencycsts.

3.2 Credit risk

Thecreditriskiscntrlledbytheapplicatincreditapprvals,limitsandmnitringprcedures.Aninternal

creditreviewiscnductedithecreditriskismaterial.

3.3 Market risk

Frkeyprductpurchases,theCmpanyestablishesxedandfatingpricelevelsthattheCmpanycnsiders

acceptableandentersintphysicalsupplyagreements,wherenecessary,tachievetheselevels.TheCmpany

desntacesignicantexpsurermtheriskchangesinequityprices.

3.4 Liquidity and cash fow risks

TheCmpanyreliesnitsmanagementwrkingcapitaltensurethatthecashfwswithintheperating

cyclearesustainable.

TheCmpanyhassucientsupprtrmitsDirectrstmeetitshrt-termundingneeds.

4. SIGNIFICANT ACCOUNTING POLICIES

4.1 Accounting convention

ThenancialstatementstheCmpanyarepreparedunderthehistricalcstcnventin,unlesstherwise

indicatedinthesignicantaccuntingplicies.

Thenancialstatementsarepresentedinitsunctinalcurrency,RinggitMalaysia(RM).

4.2 Adoption o revised Financial Reporting Standards FRS

ThellwingarethestandardsandICInterpretatinsthatntyeteectiveandhaventbeenearlyadpted

bytheCmpany:-

(1) AmendmenttFRS1 -First-timeAdptinFinancialReprtingStandards.Amendmentsrelatingt

cstaninvestmentinasubsidiary,jintlycntrlledentityrassciate

(2) FRS1(#) - First-timeAdptinFinancialReprtingStandards

(3) AmendmenttFRS2 -ShareBasedPayment.Amendmentsrelatingtvestingcnditinsand

cancellatins

(4) AmendmentstFRS2(#) -ShareBasedPayment.Amendmentsrelatingtthescpethestandard

(5) FRS3(#) - BusinessCmbinatins



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4. SIGNIFICANT ACCOUNTING POLICIES (CONTD)

4.2 Adoption o revised Financial Reporting Standards FRS contd


bytheCmpany(cntd):-

(6) FRS4 - InsuranceCntracts

(7) AmendmenttFRS5 -Nn-CurrentAssetsHeldrSaleandDiscntinuedoperatins.Amendment

relatingtdisclsuresnn-currentassets(rdispsalgrups)classied

asheldrsalerdiscntinuedperatins

(8) AmendmentstFRS5(#) -Nn-CurrentAssetsHeldrSaleandDiscntinuedoperatins.Amendment

relatingttheinclusinnn-currentassetsasheldrdistributintwnersinthestandard

(9) FRS7 - FinancialInstruments:Disclsures

(10) AmendmenttFRS7 -FinancialInstruments:Disclsures.Amendmentrelatingtnancialassets

(11) FRS8 - operatingSegments

(12) AmendmenttFRS8 -operatingSegments.Amendmentrelatingtdisclsureinrmatinabut

segmentassets

(13) FRS101 - PresentatinFinancialStatements(Revised)

(14) AmendmenttFRS107 -CashfwStatements.Amendmentrelatingtclassicatinexpenditures

nunrecgnsisedassets

(15) AmendmenttFRS108 - AccuntingPlicies,ChangesinAccuntingEstimatesandErrrs.Amendment

relatingtselectinandapplicatinaccuntingplicies

(16) AmendmenttFRS110 -EventsAtertheBalanceSheetDate.Amendmentrelatingtreasnr

dividendntrecgnisedasaliabilityattheendthereprtingperid

(17) AmendmenttFRS116 -Prperty,PlantandEquipment.Amendmentrelatingtderecgnitin

asset

(18) AmendmenttFRS117 -Leases.Amendmentrelatingtclassicatinleases

(19) AmendmenttFRS118 -Revenue.AmendmentrelatingtAppendixthisstandardandrecgnitin

andmeasurement

(20) AmendmenttFRS119 -EmplyeeBenets.Amendmentrelatingtdenitin,curtailmentand

settlements

(21) AmendmenttFRS120 - AccuntingrGvernmentGrantsandDisclsureGvernmentAssistance.

Amendmentrelatingtdenitinandgvernmentlanatabelwmarket

rateinterest

(22) FRS123 - BrrwingCsts(Revised)

(23) AmendmenttFRS123 -Brrwingcsts.Amendmentrelatingtexclusinincidentalcsttbrrwing



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bytheCmpany(cntd):-

(24) AmendmenttFRS127 -CnslidatedandSeparateFinancialStatements.Amendmentsrelatingt

cstaninvestmentinasubsidiary,jintlycntrlledentityrassciate

(25) FRS127(#) - CnslidatedandSeparateFinancialStatements

(26) AmendmenttFRS128 -InvestmentsinAssciates.AmendmentrelatingtImpairmentlssesin

applicatintheequitymethdandthescpethisstandard

(27) AmendmenttFRS129 -FinancialReprtinginHyperinfatinaryEcnmies.Amendmentrelating

tchangingtermsused

(28) AmendmenttFRS131 -InterestsinJintVentures.Amendmentrelatingtadditinaldisclsure

requiredrjintventurethatdesntapplyFRS131

(29) AmendmenttFRS132 - FinancialInstruments:Presentatin.Amendmentrelatingtputtablenancial

instruments

(30) AmendmenttFRS134 -InterimFinancialReprting.Amendmentrelatingtdisclsureearnings

pershare

(31) AmendmenttFRS136 -ImpairmentAssets.Amendmentrelatingtthedisclsurerecverableamunt

(32) AmendmenttFRS138 -IntangibleAssets.Amendmentrelatingtrecgnitinanexpense

(33) FRS138(#) - I ntangibleAssets.AmendmentsrelatingttherevisintFRS3

(34) FRS139 - FinancialInstruments:RecgnitinandMeasurement

(35) AmendmenttFRS139 -FinancialInstruments:RecgnitinandMeasurement.Amendmentrelating

teligiblehedgeditems,reclassicatinnancialassetsandembedded

derivatives

(36) AmendmenttFRS140 - InvestmentPrperty.Amendmentrelatingtinabilitytdetermineairvalue

reliably

(37) ICInterpretatin9 -ReassessmentEmbeddedDerivatives

(38) AmendmentstIC -ReassessmentEmbeddedDerivatives.

Interpretatin9(#) AmendmentsrelatingtthescpetheICandrevisintFRS3

(39) ICInterpretatin10 - InterimFinancialReprtingandImpairment

(40) ICInterpretatin11 -FRS2-GrupandTreasuryShareTransactins

(41) ICInterpretatin12(#) -ServiceCncessinArrangements

(42) ICInterpretatin13 - CustmerLyaltyPrgrammes



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bytheCmpany(cntd):-

(43) ICInterpretatin14 - FRS119-ThelimitnaDenedBenetAsset,MinimumFundingRequirements

andTheirInteractin

(44) ICInterpretatin15(#) -AgreementsrtheCnstructinRealEstate

(45) ICInterpretatin16(#) -HedgesaNetInvestmentinaFreignoperatin

(46) ICInterpretatin17(#) -DistributinsNn-cashAssetstwners

AlltheabveAmendments,IcInterpretatinsandFRSswillbeeectiveraccuntingperidbeginningn

rater1January2010,therthanFRS8andthsemarkedwith(#)whichwillbeapplicabletaccunting

peridbeginningnrater1July2009and1July2010respectively.TheExistingFRS1,FRS3,FRS127aswell

asFRS2012004willbewithdrawnupntheadptinthenewrequirementsthattakeeectn1July2010.

FRS1,2,4,5,116,117,120,123,128,129,131and140andICInterpretatin9,10,11,12,13,14,15,16and17

arentexpectedtberelevantttheperatinstheCmpany.ThedirectrsanticipatethatthetherFRS,

amendmentstFRSandICInterpretatinswillbeadptedintheannualnancialstatementstheCmpany

rthenancialyearcmmencing1octber2010andthattheadptinthesenew/revisedFRS,amendments

tFRSandICInterpretatinswillhavenmaterialimpactnthenancialstatementstheCmpanyinthe

peridinitialapplicatinexceptrthellwing:

FRS3BusinessCombination

Therevisedstandardcntinuestapplytheacquisitinmethdtbusinesscmbinatins,withsmesignicant

changes.Allpaymentstpurchaseabusinessaretberecrdedatairvalueattheacquisitindate,with

cntingentpaymentsclassiedasdebtsubsequentlyre-measuredthrughtheincmestatement.Thereisa

chicetmeasurethenn-cntrllinginterestintheacquireeatairvalueratthenn-cntrllinginterests

prprtinatesharetheacquireesnetassets.Allacquisitin-relatedcstsshuldbeexpensed.

FRS7FinancialInstruments:Disclosures

FRS7andthecnsequentialamendmenttFRS101PresentatinFinancialStatementsrequiredisclsure

inrmatinabutthesignicancenancialinstrumentsrtheCmpanysnancialpsitinandperrmance,

thenatureandextentrisksarisingrmnancialinstrumentsandthebjectives,pliciesandprcessesr

managingcapital.

FRS8OperatingSegments

FRS8,whichreplacesFRS1142004SegmentReprting,requirestheidenticatinperatingsegmentsbased

ninternalreprtsthatareregularlyreviewedbytheCmpanyschieperatingdecisinmakerinrdert

allcateresurcestthesegmentsandtassesstheirperrmance.Currently,theCmpanyidentiestwsets

segments(businessandgegraphical)usingarisksandrewardsapprach,withtheCmpanyssystem

internalnancialreprtingtkeymanagementpersnnelservingnlyasthestartingpintrtheidenticatin

suchsegments.Asaresult,llwingtheadptinFRS8,theidenticatintheCmpanysreprtable

segmentsmaychange.



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FRS127ConsolidatedandSeparateFinancialStatements

Therevisedstandardrequirestheeectsalltransactinswithnn-cntrllingintereststberecrdedin

equityithereisnchangeincntrlandthesetransactinswillnlngerresultingdwillrgainsand

lsses.Thestandardalsspeciestheaccuntingwhencntrlislst.Anyremaininginterestintheequity

isre-measuredtairvalue,andagainrlssisrecgnisedinprtrlss.Lssesarerequiredtallcatet

nn-cntrllinginterests,eveniitresultsinthenn-cntrllinginteresttbeinadecitpsitin.

FRS139FinancialInstruments:RecognitionandMeasurement

FRS139establishesprinciplesrrecgnisingandmeasuringnancialassets,nancialliabilitiesandsmecntractstbuyandsellnn-nancialitems.Byvirtuetheexemptininparagraph103ABFRS139,the

impactnthenancialstatementsupnrstadptinthisstandardasrequirebyparagraph30(b)FRS

108,AccuntingPlicies,ChangesinAccuntingEstimatesandErrrsisntdisclsed,iany.

4.3 Signicant Accounting Estimates and Judgements

Estimates,assumptinscncerningtheutureandjudgementsaremadeinthepreparatinthenancial

statements.TheyaecttheapplicatintheCmpany'saccuntingpliciesandreprtedamuntsassets,

liabilities,incmeandexpenses,anddisclsuresmade.Theyareassessednann-gingbasisandarebased

nexperienceandrelevantactrs,includingexpectatinsutureeventsthatarebelievedtbereasnable

underthecircumstances.Actualresultmaydierrmtheseestimates.

Key sources o estimation uncertainty

Thekeyassumptinscncerningtheutureandtherkeysurcesestimatinuncertaintyatthebalance

sheetdate,thathavesignicantriskcausingamaterialadjustmenttthecarryingamuntsassetsand

liabilitieswithinthenextnancialyeararediscussedbelw:-

Incometaxes/Deferredtaxliabilities

SignicantjudgementisinvlvedindeterminingtheCmpanysprvisinrincmetaxes.Therearecertain

transactinsandcmputatinsrwhichtheultimatetaxdeterminatinisuncertainduringtherdinarycurse

business.TheCmpanyrecgnisedtaxliabilitiesbasednestimateswhetheradditinaltaxeswillbedue.

Wherethenaltaxutcmethesemattersisdierentrmtheamuntsthatwereinitiallyrecgnised,such

dierencewillimpacttheincmetaxanddeerredtaxprvisinsintheperidinwhichsuchdeterminatinis

made.

Thedevelpmentcstsareamrtisedinastraight-linebasisvertheliespanthedevelpedassets.

Managementestimatedtheuseullietheseassetstbewithin3years.Changesinthetechnlgical

develpmentsculdimpacttheecnmicuseullieandtheresidualvaluestheseassets,therereuture

amrtisatinchargesculdberevised.

Amortisationandimpairmentofdevelopmentcosts

TheCmpanycarriedutimpairmenttestbasednavarietyestimatinincludingthevalue-in-useCash

GeneratingUnit(CGU)twhichthedevelpmentcstsareallcated.Estimatingthevalue-in-userequiresthe

CmpanytmakeanestimatetheexpecteduturecashfwsrmtheCGUandalstchseasuitable

discuntrateinrdertcalculatethepresentvaluethsecashfws.Thecarryingamuntdevelpment

cststheCmpanyasat30September2009isRM784,653(2008:RM359,325).



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4.4 Research and development cost

Expenditurenresearchactivitiesisrecgnisedasanexpenseintheperidinwhichitisincurred.

Develpmentcstareexpensedintheperidinwhichtheyareincurredexceptwhenthecstincurredn

develpmentprjectarerecgnisedasdevelpmentassetsttheextentthatsuchexpenditureisexpected

tgeneratesutureecnmicbenets.

Develpmentcstinitiallyrecgnisedasanexpenseisntrecgnisedasanassetinsubsequentyear.

Capitaliseddevelpmentcst,cnsideredthaveniteuseullie,isamrtisednasystematicbasisvertheir

expecteduseulliveswhichis3yearscmmencingrmthetimewhentheprductisavailablersaleand

assessedrimpairmentwheneverthereisanindicatinthatthedevelpmentcstmaybeimpaired.Shuldtheprductrprjectbeabrded,therelativeexpenditurewillbechargettheincmestatementinthe

peridinwhichsuchdecisinismade.

Theamrtisatinperidandtheamrtisatinmethdrthedevelpmentcstwithaniteuseullieare

reviewedatleastateachnancialyearend.

Theamrtisatinexpensendevelpmentcstwithniteuseullieisrecgnisedintheincmestatementin

theexpensescategry.

4.5 Receivables

Receivablesarecarriedatanticipatedrealisablevalue.Baddebtsarewrittenintheperidinwhichthey

areidentied.Anallwanceismaderdubtuldebtsbasednareviewallutstandingamuntsatthenancialperidend.

4.6 Cash and cash equivalents

Cashandcashequivalentscmprisecashnhandandcashatbank,whicharereadilycnvertibletknwn

amuntscashwhicharesubjecttaninsignicantriskchangesinvalue.

4.7 Payables

Payablesarestatedatcstwhichisairvaluethecnsideratintbepaidintheuturergdsandservices

received.

4.8 Revenue recognition

RevenuermsalegdsandservicesarerecgnisedwhentheCmpanyhastranserredtthebuyerthe

signicantrisksandrewardswnershipthegdsandservices.

Revenuermmaintenanceeeisrecgnisedntheprvisinassessmentanddevelpmentserviceswhich

isbasedntheeeincmetimewrked.

Revenuermlicensedeeisrecgnisedwhenitisprbablethatlicensedeewillbereceived,whichisnrmally

whentheeventhasccurred.



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4.9 Impairment o assets

Ateachbalancesheetdate,theCmpanyreviewsthecarryingamuntsitsassetstdeterminewhether

thereisanyindicatinimpairment.Intangibleassetwithindeniteuseulliesuchasgdwillistestedr

impairmentatleastnceannuallyrmrerequentlyieventsrchangesincircumstancesindicatethatthe

carryingvaluemaybeimpairedeitherindividuallyratthecash-generatingunitlevel.

Ianysuchindicatinexists,rwhenannualimpairmenttestingranassetisrequired,therecverableamunt

isestimatedandanimpairmentlssisrecgnisedwhenevertherecverableamunttheassetracash-

generatingunitislessthanitscarryingamunt.Recverableamuntanassetracash-generatingunitis

thehigheritsairvaluelesscststsellanditsvalueinuse.

Inassessingvalueinuse,theestimateduturecashfwsarediscuntedttheirpresentvalueusingapre-tax

discuntratethatrefectscurrentmarketassessmentsthetimevaluemneyandtherisksspecictthe

asset.Impairmentlssescntinuingperatinsarerecgnisedintheincmestatementinthseexpense

categriescnsistentwiththeunctintheimpairedasset.

Animpairmentlssisrecgnisedasanexpenseintheincmestatementimmediately.

Anassessmentismadeateachbalancesheetdateastwhetherthereisanyindicatinthatpreviuslyrecgnised

impairmentlssesranassettherthangdwillmaynlngerexistrmayhavedecreased.Isuchindicatin

exists,therecverableamuntisestimated.Apreviuslyrecgnisedimpairmentlssisreversednlyithere

hasbeenachangeintheestimatesusedtdeterminetheassetrecverableamunt.Thatincreasedamunt

canntexceedthecarryingamuntthatwuldhavebeendetermined,netdepreciatin,hadnimpairment

lssbeenrecgnisedrtheassetinpriryears.

Allreversalsimpairmentlssesarerecgnisedasincmeimmediatelyintheincmestatement.

Animpairmentlssrecgnisedrgdwillshallntbereversedinasubsequentperid.

4.10 Financial instruments

Financialinstrumentscarriednthebalancesheetincludecashandbankbalances,receivablesandpayables.

Theparticularrecgnitinmethdsadptedaredisclsedin theindividualaccuntingplicystatements

assciatedwitheachitem.

Financial instrumentsaresetwhentheCmpanyhasalegallyenrceablerighttsetthe

recgnisedamuntsandintendseithertsettlenanetbasis,rtrealisetheassetandsettletheliability

simultaneusly.

4.11 Foreign currency translation and balances

ThenancialstatementsarepresentedinMalaysiaRinggit,whichisalstheunctinalcurrencythe

Cmpany.

TransactinsinreigncurrenciesarerecrdedinRinggitMalaysiaatratesexchangerulingatthedatethe

transactins.Freigncurrencymnetaryassetsandliabilitiesaretranslatedatexchangeratesrulingatbalance

sheetdate.

Gainsandlssesresultingrmsettlementsuchtransactinsandcnversinmnetaryassetsandliabilities,

whetherrealisedrunrealised,areincludedintheincmestatementastheyarise.



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4.12 Equity instruments

ordinarysharesareclassiedasequitywhicharerecrdedatthenminalvalueandprceedsinexcessthe

nminalvaluesharesissued,iany,areaccuntedrassharepremium.Bthrdinarysharesandshare

premiumareclassiedasequity.Dividendsnrdinarysharesrecgnisedasliabilitieswhendeclared.

4.12 Equity instruments

Thetransactincstsanequitytransactinwhichcmprisenlythseincrementalexternalcstsdirectly

attributablettheequitytransactinareaccuntedrasadeductinrmequity,nettax,rmthe

prceeds.

5. PRINCIPAL ACTIVITY AND GENERAL INFORMATION

TheCmpanyisprincipallyengagedindevelpmentandprvisinstwareandengineeringcnsultancyr

AutmatedIdenticatinandDataCllectin(AIDC)andinvestmenthldingcmpany.

TherehavebeennsignicantchangesinthenaturetheseactivitiestheCmpanyduringthenancialyear.

TheCmpanyisapubliclimitedliabilitycmpany,incrpratedanddmiciledinMalaysiaandlistedntheACE

MarketBursaMalaysiaSecuritiesBerhadn9December2009.

TheregisteredcetheCmpanyislcatedat3rdFlr,N.79(RmA),JalanSS21/60,DamansaraUtama,47400

PetalingJaya,SelangrDarulEhsan.TheprincipalplacebusinesstheCmpanyislcatedatSuite30.10,Business

InnvatinCentre,Level30,MenaraMSCCyberprt5,JalanBukitMeldrum,JhrBahru,80300Jhr.

ThenancialstatementswereauthrisedrissuebytheBardDirectrsinaccrdancewithareslutinthe

Directrsn20January2010.

6. SHARE CAPITAL

2009 2008

RM RM

Authrised:-

ordinarysharesRM1.00each

100,000sharesatbeginning/endthenancialyear 100,000 100,000

Issuedandullypaid:-

ordinarysharesRM1.00each

2sharesatbeginning/endthenancialyear 2 2



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7. DEVELOPMENT COSTS

2009 2008

RM RM

Cost

Brughtrward 824,863 505,537

Additins 1,017,316 319,326

Carriedrward 1,842,179 824,863

Accumulated amortisation

Brughtrward 465,538 179,548

Chargedduringthenancialyear 591,988 285,990

Carriedrward 1,057,526 465,538

Netcarryingamunt 784,653 359,325

Develpmentcstsarecstsincurredrdevelpingstwareinrdertselltthercustmers.

ThemanagementtheGrupcarriedutareviewtherecverableamuntitsdevelpmentcstsduringthe

nancialyear.Thereviewdidntleadtanyrecgnitinimpairmentlss.

Therecverableamuntwasbasednvalue-in-useandwasdeterminedatthecashgeneratingunit(CGU).In

determiningvalue-in-usertheCGU,cashfwswerediscuntedatarate6.75%napre-taxbasis.ThediscuntrateisbasedntheBaseLendingRate(BLR)inMalaysia.

8. TRADE RECEIVABLES

IncludedintradereceivablesareamuntduermcmpaniesinwhichDirectrshaveinterestRM3,002,498(2008:

RM2,254,163).

TheamuntduermcmpaniesinwhichDirectrshaveinterestisunsecured,bearsninterestandnscheme

repaymenthasbeenarranged.Thesebalanceswillbecmeinter-cmpanybalancesasthesecmpaniesareinvlved

inthelistingexerciseasdisclsedinNte19ttheFinancialStatements.

Thecurrencyexpsureprlethetradereceivables,therthandenminatedintheCmpanysunctinalcurrency

isasllws(reigncurrencybalanceareunhedged):-

2009 2008

RM RM

SingapreDllar 3,002,498 2,060,944

TheCmpanysnrmaltradecreditrmrangesrm30dayst90days.othercredittermsareassessedandapprved

nacase-by-casebasis.



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9. OTHER RECEIVABLES

2009 2008

RM RM

Rentaldepsit 2,500 4,600

Prepaymentlistingexpenses 758,494 320,279

760,994 324,879

Thelistingexpenseswillbesetagainstthesharepremiumaccuntandunapprriatedprtaccuntupnthe

cmpletintheftatinexercise.

10. TRADE PAYABLES

Inthepreviusnancialyear,thetradepayableswasanamuntduermacmpanyinwhichDirectrshave

interest.

ThecreditstermsgrantedbythetradepayablesttheCmpanyrangedrm30dayst180days.

11. OTHER PAYABLES

2009 2008

RM RM

Accrualsexpenses 171,500 4,000

Nn-tradepayable 46,658 16,670

AmuntduetacmpanyinwhichDirectrshaveinterest 40,427

258,585 20,670

TheamuntduetcmpaniesinwhichDirectrshaveinterestisunsecured,bearsninterestandnscheme

repaymenthasbeenarranged.Thisbalancewillbecmeinter-cmpanybalanceasthiscmpanyisinvlvedinthe

listingexerciseasdisclsedinNte19ttheFinancialStatements.

Thecurrencyexpsureprlethetherpayables,therthanbalancesdenminatedintheCmpanysunctinal

currencyisasllws(reigncurrencybalanceareunhedged):-

2009 2008

RM RM

SingapreDllar 10,737

12. REVENUE

TherevenuetheCmpanyrepresentsincmermsalesstwarerdigitalandlicensedeescharged.



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13. PROFIT BEFORE TAXATION

Prtberetaxatinhasbeendeterminedaterchargingamngsttheritemsthellwings:-

2009 2008

RM RM

Auditrsremuneratin -statutryaudit 15,000 4,000

-specialauditrinitialpublicerings 4,000

Amrtisatindevelpmentcsts 591,988 285,990

Directrstheremlument 150,000

ocerental 8,000 13,750

Realisedreignexchangelss 6,809 465

14. TAXATION

ThereisnprvisinrtaxatinrtheCmpanyastheCmpanywasgrantedapineerstatusrapprvedqualiying

activityincmederivedrmMultimediaSuperCrridrprjectraperid5yearsexpiringn3August2011.

Ndeerredtaxliabilitieshasbeenprvidedrthetaxabletemprarydierencesnthedevelpmentexpendituren

theassumptinthattheCmpanywillmakeanapplicatintMultimediaDevelpmentCrpratinranextensin

itspineerperidrm4August2011t3August2016whenitsexistingpineerperidendsn3August2011.

Theextensinthepineerperidraurther5yearsissubjecttulllingallthecnditinsrextensinsetby

theMultimediaDevelpmentCrpratin.

Arecnciliatinincmetaxexpensesapplicabletprtberetaxatinatthestatutrytaxratettheincme

taxexpensesattheeectivetaxratetheCmpanyareasllws:-

2009 2008

RM RM

Prtberetaxatin 2,339,941 1,823,961

TaxatinatMalaysianstatutrytaxrate25%(2008:26%) 584,985 474,230

Taxeectsinrespect:-

Expensesntdeductiblertaxpurpses 131,596 74,014

Taxsavingsrmpineerstatus (520,581) (458,412)

Deerredtaxliabilitiesntrecgnisedduet

pineerstatusgranted (196,000) (89,832)

Eectivetaxexpenses

SubjecttagreementbytheInlandRevenueBard,theCmpanyhassucienttaxexemptincmetrankthe

paymentdividendsttheextentRM4,739,110(2008:RM2,656,787)utitsretainedprtsasat30September

2009.

TheMalaysianBudget2008intrducedasingletiercmpanyincmetaxsystemwitheectrmyearassessment

2008.Assuch,theSectin108taxcreditasat30September2009willbeavailablettheCmpanyuntilsuchtimethe

creditisullyutilisedrupnexpirythesix-yeartransitinalperidn30September2013,whicheverisearlier.

Hwever,theabveamuntsaresubjectttheapprvaltheInlandRevenueBardM

DSCSOL-AnnualReport2009 (1.4MB)

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