Contents JerasIa caPItal Berhad (503248-a) annual rePort 2016 002 corporate structure

AnnuAl RepoRt 2016


002

corporatestructure


003

corporatestructure

Jerasia Apparel Sdn Bhd (156513-X)100%

Jerasia Inspiration Sdn Bhd (6523-D)100%

Jerasia Brands Sdn Bhd (156588-T)100%

Canteran Apparel Sdn Bhd (211117-M)100%

Canteran Apparel (Cambodia) Co Ltd (788/03E)100%

Jerasia Fashion Sdn Bhd (360850-V)100%

Jerasia Haulage Sdn Bhd (409828-T)100%


004

coRpoRAteInfoRmAtIon

Board of dIrectorsDAto’ NIk MoHAMeD DIN BIN DAtuk NIk YuSoFFIndependentNon-ExecutiveChairman

DAtuk YAp FuNg koNgExecutiveDeputyChairman

proNoB kuMAr SeN guptAGroupManagingDirector

DAto’ tAN YIk HuAYIndependentNon-ExecutiveDirector

DAto’ Dr YoNg YuAN tANNon-IndependentNon-ExecutiveDirector

DAto’ SrI MoHD HANIFF BIN ABD AzIzNon-IndependentNon-ExecutiveDirector

ANDrew HoNg tAt BeNgIndependentNon-ExecutiveDirector

regIstered offIceSuite1008,10thFloorWismaLimFooYong86,JalanRajaChulan50200KualaLumpurTel :03-21433823Fax :03-21433827

share regIstrarTRICoRINVESToR&ISSuINGHouSESERVICESSDNBHD(11324-H)unit32-01,Level32,TowerAVerticalBusinessSuiteAvenue3,BangsarSouthNo.8,JalanKerinchi59200KualaLumpurTel :03-27839299Fax :03-27839222

audItorsSJGRANTTHoRNToN(AF:0737)Level11,SheratonImperialCourtJalanSultanIsmail50250KualaLumpurTel :0326924022Fax :0326915229Email :[email protected]

secretarIesWoNGKWAIYIN(MAICSA7008652)

TANSooKMEI(LS02892)

solIcItorsLoGANSABAPATHY&Co

PrIncIPal BankersALLIANCEBANKMALAYSIABERHAD

HSBCBANKMALAYSIABERHAD

RHBBANKBERHAD

uNITEDoVERSEASBANK(MALAYSIA)BERHAD

stock exchange lIstIngBuRSAMALAYSIASECuRITIESBERHADMainMarket

WeBsItewww.jerasia.biz


005

GRoup fInAncIAl HIGHlIGHts

2012 2013 2014 2015 2016* rM Million rM Million rM Million rM Million rM Million

Revenue 316.6 320.9 320.9 337.2 503.6

Profitbeforetax 12.3 10.1 5.0 10.9 9.2

Profitaftertax 8.4 7.0 3.3 10.0 7.1

SeN SeN SeN SeN SeN

Dividendpershare 3.0 - - - -

revenueRMMillion

ProfIt Before taxRMMillion

ProfIt after taxRMMillion

12 12 1213 13 1314 14 1415 15 1516*(15mths) (15mths) (15mths)

16* 16*

320.

9

10.1 7.0

320.

9

5.0

3.3

503.

6

9.2

7.1

316.

6

12.3 8.4

337.

2

10.9

10.0

* TheGroupchanged itsfinancial yearend from31March to30Junewitheffect fromthisfinancialperiodended30June2016andaccordingly,theresultsforthefinancialperiodarefor15months.


006

Directors’profiledato’ nIk MohaMed dIn BIn datuk nIk Yusoff Independent Non-executive Chairman

Dato’ Nik Mohamed Din bin Datuk Nik Yusoff, aged 73,male, a Malaysian, is an Independent Non-ExecutiveChairmanoftheCompany.HeisalsotheChairmanoftheRemunerationCommitteeandamemberoftheAuditandNominating Committees. Dato’ Nik Mohamed Din wasappointedtotheBoardon30April2001.HeisaBarrister-at-Law from Lincoln’s Inn, London. He was a Magistratewith the Malaysian Judicial Services from 1968 to 1969andpractisedasalawyerwithMahKok&Dinfrom1970to 1983. From 1984 to 1988, he was a stockbroker andChairmanofoSK&PartnersSdnBhd.HewasChairmanof the Kuala Lumpur Stock Exchange (now known asBursaMalaysiaSecuritiesBerhad)from1985to1988andExecutiveChairmanfrom1988to1998.

He is currently the Non-Independent Non-ExecutiveChairman of Ventures International Berhad and oSKHoldingsBerhad.

He is also a Director of Federation of Public ListedCompaniesandDatinSriTingSuiNgitFoundation.

Hedoesnothaveanyfamilyrelationshipwithanydirectorand/ormajorshareholderofJerasiaCapitalBerhadandhehasnoconflictofinterestwiththeCompany.

Dato’ Nik Mohamed Din has no convictions for offenceswithinthepastfiveyears.Therewerenopublicsanctionorpenaltyimposedonhimbyanyrelevantregulatorybodiesduringthefinancialperiod.

datuk YaP fung kong executive Deputy Chairman

Datuk Yap Fung Kong, aged 66, male, a Malaysian, iscurrentlytheExecutiveDeputyChairmanoftheCompany.Hewasappointed to theBoardon28March2000.DatukYap holds a Bachelor of Economics (Honours) DegreefromuniversityofMalaya.Heservedwith theMinistryofInternationalTradeandIndustry(“MITI”)from1973to1984,invariouscapacitiesleadingtobeingtheHeadoftheTextilesunit in the International Trade Division, responsible forMalaysia’smultilateralandbilateral textilesnegotiations.In1984,DatukYapleftMITIandsubsequentlybecameanExecutiveDirectorofTaiWahGarmentManufacturingBhd(“TaiWah”).HeleftTaiWahin1991andfoundedCanteranApparel Sdn Bhd. Datuk Yap has in the past, served asPresidentofMalaysianTextileManufacturersAssociation,ChairmanoftheAseanFederationofTextileIndustriesandisalsoafoundingmemberofMalaysianTextileandApparelCentre.


Datuk Yap has no convictions for offences within thepastfiveyears.Therewerenopublicsanctionorpenaltyimposedonhimbyanyrelevantregulatorybodiesduringthefinancialperiod.


007

PronoB kuMar sen guPtagroup Managing Director

MrPronobKumarSenGupta,aged50,male,aMalaysian,iscurrentlytheGroupManagingDirectorandalsoamemberoftheRemunerationCommitteeoftheCompany.HewasappointedtotheBoardon24March2006.

He has been a Director of various subsidiaries in theJerasiaGroup,sincehejoinedin2000.HeholdsaBachelorof Science Degree in Economics (Accounting) from theuniversity of London. Mr Sen Gupta is involved in theStrategicPlanning,BusinessDevelopment,CorporateandFinancemattersfortheJerasiaGroup.PriortojoiningtheJerasia Group in 2000, he was an Account RelationshipManager in the Corporate Banking Division with a localcommercialbank.

Hedoesnothaveanyfamilyrelationshipwithanydirectorand/or major shareholder of Jerasia Capital Bhd and hehasnoconflictofinterestwiththeCompany.

Mr. Sen Gupta has no convictions for offences within thepastfiveyears.Therewerenopublicsanctionorpenaltyimposedonhimbyanyrelevantregulatorybodiesduringthefinancialperiod.

dato’ tan YIk huaYIndependent Non-executive Director

Dato’ Tan Yik Huay, aged 73, male, a Malaysian, is anIndependentNon-ExecutiveDirectoroftheCompany.Dato’Tan was appointed to the Board on 20 April, 2000 and iscurrentlytheChairmanofAuditandNominatingCommittees.HeisalsoamemberoftheRemunerationCommittee.

Dato’ Tan is a Fellow of the Chartered Association ofCertified Accountants, united Kingdom and a Fellow oftheInstituteofCharteredSecretariesandAdministrators,united Kingdom. He is also a member of the MalaysianInstituteofAccountantsandalifememberoftheMalaysianAssociationofCertifiedPublicAccountants.

Hejoinedthetextileindustryin1973astheFinanceManagerandlaterExecutiveDirectorofthePenGroupofCompanies,an international integrated textile group. He was theManagingDirectorofPenApparelSdnBhd.amemberofthe TAL Group of Hong Kong until end January 2005 andcurrentlyaNon-ExecutiveDirectorofthesaidcompany.

Currently,Dato’TanistheVicePresidentoftheMalaysianTextile Manufacturers’ Association (MTMA) and Councilof Malaysian Textile and Apparel Centre of which heis a founder member. Dato’ Tan was past Chairman of

Asian Chemical Fibers Industry Federation and also pastChairmanofPembangunanSumberManusiaBhd.


Dato’Tanhasnoconvictionsforoffenceswithinthepastfiveyears.Therewerenopublicsanctionorpenaltyimposedonhim by any relevant regulatory bodies during the financialperiod.

dato’ dr Yong Yuan tan Non-Independent Non-executive Director

Dato’DrYongYuanTan,aged75,male,aSingaporean, iscurrently the Non-Independent Non-Executive Directorof the Company. He is also a member of the Audit andNominatingCommittees.Dato’DrYongwasappointed totheBoardon28March2000.

He holds a Doctorate in Chemistry from the universityof Singapore which he obtained in 1970 and was a PostDoctoral Research Fellow for 3 years at the universityof Sussex, united Kingdom from 1968 – 1970. He hasmore than 20 years of hands-on experience in thetextile and apparel industry. He was elected as memberof the Executive Committee of the Malaysian TextilesManufacturers’ Association (“MTMA”) from 1988 to 1996.HewasalsoelectedastheDeputyChairmanofMalaysianTextiles&ApparelCentre(“MATAC”)from1994to1999.

HewasappointedasamemberoftheAcademicAdvisoryPanel to the Textile Technology Department, Faculty ofApplied Science at the university Technology of Mara(“uiTM”)from1November2003to30November2005.uiTMalsoappointedDato’DrYongasanExternalExaminer totheBachelorDegreeProgramatthesameDepartmentforthesametimeperiod.HewasalsoappointedasChairmanofWorkingGroupon‘sizedesignationforclothing’in2005under the Industry Standard Committee on textile andapparel,establishedundertheStandardDevelopmentandInfrastructuremanagedbySIRIMBerhad.

HeispresentlytheManagingDirectorofaprivatelimitedcompanymanufacturingpolymerplasticflexiblepackaginginThailand.


Dato’ Dr Yong has no convictions for offences within thepastfiveyears.Therewerenopublicsanctionorpenaltyimposedonhimbyanyrelevantregulatorybodiesduringthefinancialperiod.


008

DIRectoRs’

pRofIle

andreW hong tat BengIndependent Non-executive Director

MrAndrewHongTatBeng,52,Malaysian,isanIndependentNon-ExecutiveDirectoroftheCompany.HewasappointedtotheBoardon22May2014andiscurrentlyamemberoftheAuditandNominatingCommittees.

HeholdstheMastersofManagementfromopenuniversityMalaysia (ouM) which he obtained in 2013 and Diplomaof Technology in operations Management – InternationalTrade option from British Columbia of Institute ofTechnology,Canadaobtainedin1987.

HeservedtheMalaysianTextileManufacturersAssociation(MTMA)as itsChiefExecutiveoffice for10yearsuntilheoptedforearlyretirementinJune2014.HealsoservedastheAdvisorfortheTransPacificPartnershipAgreementfortheMinistryofInternationalTradeandIndustry(MITI)fromMarch2013toMarch2014.HewasalsotheAdvisorfortheMalaysian Textile Manufacturers Association (MTMA) andalsothepastPermanentSecretaryGeneralfortheASEANFederationofTextilesIndustries.

Mr Hong was also the Secretary General for the AsianChemicalFibresIndustryFederation(ACFIF).


MrHonghasnoconvictionsforoffenceswithinthepastfiveyears.Therewerenopublicsanctionorpenaltyimposedonhimbyanyrelevantregulatorybodiesduringthefinancialperiod.

dato’ srI Mohd hanIff BIn aBd azIzNon-Independent Non-executive Director

Dato’ Sri Mohd Haniff Bin Abd Aziz, aged 62, male, aMalaysian, is currently Non-Independent Non-ExecutiveDirectorof theCompany.Hewasappointed to theBoardon28March2000.

HeholdsaBachelorofEconomics(Honours)DegreefromtheuniversityofMalayawhichheobtainedin1975.

HeservedtheMinistryofInternationalTradeandIndustry(“MITI”)for19yearsuntilheoptedforanearlyretirementin 1994. During his term at MITI, he served as AssistantDirectoroftheMinistryfrom1975to1978beforeservinginthePermanentMissionofMalaysiatotheunitedNationsinGenevafrom1978to1981andwaslaterreassignedasMalaysian Trade Commissioner to the Philippines from1981to1987andthentoThailandfrom1987to1991.HewastheDirectoroftheMalaysianExternalTradeDevelopmentCorporation (formerly known as Malaysian Export TradeCentre)from1991to1994.

Dato’SriMohdHaniffsitsontheBoardofEuroHoldingsBerhad.


Dato’ Sri Mohd Haniff has no convictions for offenceswithinthepastfiveyears.Therewerenopublicsanctionorpenaltyimposedonhimbyanyrelevantregulatorybodiesduringthefinancialperiod.


009

senIoR mAnAGement pRofIle

lIeW WaI san Financial Controller

Ms Liew Wai San, aged 39, female, Malaysian, wasappointed as the Financial Controller of Jerasia CapitalBhd(JCB)GroupinMay2015.

MsLiew,aCharteredAccountant,isaMemberoftheMalaysianInstituteofAccountantsandaFellowMemberoftheAssociationofCharteredCertifiedAccountants,unitedKingdom.

She started her career in 2002 in the auditing andsubsequently,movedtotheprivatesectorintheAccountsand Finance Department. Ms Liew joined the JCB Groupin2007asanAccountant.ShewaspromotedtoFinancialControllerinMay2015.

Ms Liew does not have any family relationship with anydirector and/or major shareholder of JCB. She has noconflict of interest with the Company and has had noconvictions for offences with the past five years. Therewerenopublicsanctionorpenaltyimposedonherbyanyrelevantregulatorybodiesduringthefinancialperiod.

ong Peck chooHead of performance Management & Support

MsongPeckChoo,aged46,female,Malaysian,iscurrentlytheHeadofPerformanceManagement&Support fortheJerasiaCapitalBhd(JCB)Group.

Ms ong a Chartered Accountant, is a Member of theMalaysian Institute of Accountants and also a Memberof CPA Australia (Certified Practising Accountants). SheholdsaBachelorofBusiness(MajoringinAccounting)fromRoyalMelbourneInstituteofTechnology(RMIT)university,Australiawhichsheobtainedin1993.

Shebeganhercareer in1994asan internalauditorwithArab-Malaysian Corporation Berhad Group. In 1998, Msong joined MCL Corporation Bhd (MCL) Group as anAssistantAccountsManager.ShecontinuedhercareerwiththeJCBGroupfollowingthereversetakeoverofMCL.ShebecametheGroupAccountantinJanuary2008andmovedtohercurrentpositionin2015.

Ms ong does not have any family relationship with anydirector and/or major shareholder of JCB. She has noconflict of interest with the Company and has had noconvictions for offences with the past five years. Therewerenopublicsanctionorpenaltyimposedonherbyanyrelevantregulatorybodiesduringthefinancialperiod.

saMantha lIM sIeW keeHead of Human resource & Administration

MsSamanthaLimSiewKee,aged55, female,Malaysian,was appointed as Head of Human Resource andAdministrationinJanuary2008.

She pursued her secretarial studies at Pitmans CentralCollegeinLondonaftercompletingherALevels.Followingherreturn,shestartedhercareerasaPrivateSecretarytoaSeniorPartneratPriceWaterhouseCoopersin1987.

MsLimjoinedMCLCorporationBhd(MCL)Groupin1996as an Executive Secretary and was transferred and re-designatedasPersonnelExecutiveinApril1998.Shewaspromoted to the position of Assistant Manager – HumanResourceandAdministrationinSeptember1999andwassubsequently promoted to Manager in April 2003 and iscurrentlytheHeadofHumanResourceandAdministration.

Ms Lim does not have any family relationship with anydirector and/or major shareholder of JCB. She has noconflict of interest with the Company and has had noconvictions for offences with the past five years. Therewerenopublicsanctionorpenaltyimposedonherbyanyrelevantregulatorybodiesduringthefinancialperiod.

YaP vee-kInHead of retail

MrYapVee-Kin,aged37,male,Malaysian,wasappointedastheHeadofRetailinMay2015.HeholdsaBachelorinInformationTechnologyfromCharlesSturtuniversity,Australia.

He began his career in 2000 in Technical Support beforejoining Jerasia Capital Bhd (JCB) Group in 2007 as theNike Brand Manager. His primary role is to oversee theretaildivisionandtoensurethatallretailbrandsoperateeffectivelyandefficiently.

MrYapisthenephewofDatukYapFungKong,whoistheExecutive Deputy Chairman and major shareholder ofJerasiaCapitalBerhad (JCB).Saveasdisclosed,hedoesnothaveanyfamilyrelationshipwithotherdirectorsand/ormajorshareholderofJCBnordoeshehaveanyconflictof interest with the Company. He has had no convictionsfor offences within the past five years. There were nopublicsanctionorpenaltyimposedonhimbyanyrelevantregulatorybodiesduringthefinancialperiod.

seoW Yuan huI general Manager, export/Manufacturing

Mr Seow Yuan Hui, aged 32, male, Malaysian, joined theJerasiaCapitalBhd(JCB)GroupinNovember2010.

HegraduatedfromtheuniversityofBath,unitedKingdomwith a Master of Engineering (Hons) in MechanicalEngineering in 2004. After graduating, he acquiredinvaluableexperienceasanAnalystforAccentureMalaysiaover a period of approximately two years. From 2007, heworked on specific project consultancies in the garmentmanufacturing industry in Malaysia. He then joinedCanteranApparelSdnBhdwhichistheManufacturingandExportDivisionfortheGroupasGeneralManager.

Mr Seow does not have any family relationship withany director and/or major shareholder of JCB. He hasno conflict of interest with the Company and has had noconvictions for offences with the past five years. Therewerenopublicsanctionorpenaltyimposedonhimbyanyrelevantregulatorybodiesduringthefinancialperiod.


010

chairmstatement

an’s


011

dear valued shareholders,on Behalf of the Board of dIrectors, It gIves Me great Pleasure to Present to You the annual rePort and audIted fInancIal stateMents of the JerasIa caPItal Berhad (‘JcB’) grouP for the fInancIal PerIod ended 30 June 2016.

fInancIal PerforManceThecurrentfinancialperiodended30June2016covereda period of 15 months due to the change in the Group’sreporting date from 31 March to 30 June. This changewas envisaged to ensure continued and enhancedoperational and administrative efficiencies arising fromthe implementationofGoodsandServicesTax (‘GST’)on1April2015.Itistobenotedhowever,thatwiththischangeinreportingdate,anycomparisonsbetweenthis15monthsfinancialperiodtopreviousfinancialperiodsof12monthsmusttakeduecognizanceofthedifferentialinduration.

Thefinancialperiodunderreviewwasindeedachallengingone, both in the domestic Malaysian as well as theinternational trading environment. The Group, however,demonstrated resilience to achieve a total turnover ofRM503.61 million over the 15 months in question. Profitbefore tax was recorded at RM9.17 million. Turnover forthe Group had, in the first four quarters of this financialperiod,increasedby15.4%toreachRM389.25millionfromRM337.23millionfromthelast12monthfinancialperiod.

Despiteexternalshocks,thedomesticeconomyisexpectedtogrow.BankNegaraMalaysia(‘BNM’)projectsthegrowthrate at 4.0 – 4.5%. Nevertheless, as stated in BNM’sAnnual Report 2015, “the pace of expansion in domesticdemand,however,isexpectedtobemoremoderateamidongoing adjustments by consumers and investors to thechallenging economic environment. Private consumptiongrowthisprojectedtotrendbelowitslong-termaverage,ashouseholdscontinuetomakeexpenditureadjustments inresponsetothelingeringeffectsoftheGSTimplementation,andchanges inadministeredprices.Householdspendingwillalsobeaffectedbyweakerconsumersentimentsdueto the uncertain conditions in the labour and financialmarkets.”

mentan’s


012

cHAIRmAn’s

stAtement

The global economy continues to be clouded byuncertainties. oil and commodity prices remain at lowlevels while the currency markets were volatile and thisvolatility still remains going forward. The recent historicBrexitreferendum,ofwhichitsactualimpactontheglobaleconomy has not been fully appraised yet, all suggeststhatitiswelladvisedfortheGrouptoadoptaprudentandvigilantapproach.

revIeW of oPeratIonsretAIL DIvISIoN

During the financial period ended 30 June, the Group’sretaildivisionattainedaturnoverofRM272.08millionfor

fivequarters.Incomparisonforthe12monthperiodended31 March 2016, this division grew by 8.05% to RM216.70million as compared to the previous 12 month period,totalingRM200.55million.

Throughout the course of this 15 month financial period,the Group made strategic changes by closing smallerand older boutiques and relocating to better, biggerlocations. InKuching,ourMangoTheHillswasrelocatedandexpandedtoanewmall,VivacityMegamall.TheGroupalsointroducedtheMangoMan,MangoKidsandVioletabyMangolabelstotheKuchingcommunity.

TheGroupalsounveiledTerranova’ssisterbrand,Calliope,totheMalaysianmarket.ThefirstCalliopestoreinVivacityMegamall, Kuching has been met with overwhelmingresponse and the Group has two more Calliope storesslatedtoopeninthegreaterKualaLumpurarea.

InJune2016,theGrouplaunchedthefirstTRIoBasicstoreinBatuPahatandwasmetwithaverypromisingresponse,which in turn, encouraged us to open another TRIoBasic boutique in Bintulu, Sarawak in August 2016. TheTRIoBasicconceptwascreatedasagateway tosmallertownshipsacrossMalaysia,andwitha1,000-1,500squarefeet store, we are able to focus our product selection inTRIoBasictothatofthemostattractive,bothintermsofpricinganddesign.WiththisintroductionofTRIoBasic,theGroupisnowabletoexpandtheTRIobrandfurtheraroundMalaysia, all the while lowering cost but still offeringcustomersthemostattractiverangeofourTRIoproductsatthebestcompetitivevalues.

Atthisopportunetimewheretherearemanynewupcomingmallsnationwide,theGroupwill,wherefeasible,maintainits path of aggressively expanding to enable enhancedgrowthinourretaildivision.

MANuFACturINg AND export DIvISIoN

ThemanufacturingandexportdivisionrecordedaturnoverofRM231.53millionforthefinancialperiodended30June2016. For the first four quarters of this financial period,thedivision registeredan increaseof26.2% toRM172.55millionascomparedtoturnoveroftheprevious12monthsfinancialperiodended31March2015ofRM136.68million.Themanufacturingandexportdivisionhasimproveduponits performance largely due to strong and continuingsupportfromitscurrentcustomerbase.Inaddition,TeddyS.p.A, for which the retail division has a successful andgrowingrelationship,marketingtheTerranovaandCalliopelabels in Malaysia, has in the current financial period


013

successfully embarked on a manufacturing relationshipwith the Group’s Cambodian manufacturing operations.This is expected to see significant growth in the comingfinancialquarters.

The Group will continue to commit towards growing themanufacturingandexportdivisiontorealizeandmaximizeits full potential, particularly at this point in time wherethecurrentstrengthoftheuSDollarisfavourabletowardsexports.

future ProsPectsWiththecontinuinguncertaintiesinboththedomesticandinternational environment, the Group has increased itslevelofvigilanceandprudence.Itisdeepeningitsapproachof working more strategically and closely with its longstandingbusinesspartnerstoachievemutuallybeneficialsuccess.TheGroupcontinuestotakealongtermpositiveviewofitsfutureprospects.

dIvIdendTheBoarddoesnotproposeanydividendforthisfinancialperiod.

acknoWledgeMenton behalf of the Board of Directors, I wish to thank allshareholders, business associates, clients, suppliers,bankers,governmentauthorities,andstatutorybodiesfortheirconfidenceandsupport inJCB.Finally, Iwould liketothankmyfellowboardmembers,theManagement,andthestafffortheirinvaluablecontributionandcommitmenttotheGroup.

Dato’ Nik Mohamed Din bin Datuk Nik YusoffChairman


014

coRpoRAte socIAlResponsIbIlIty stAtement

ourCSRphilosophyintegratesoursocialandenvironmentalresponsibilities into our business strategies for thesustainablegrowthof theCompany,which is in linewiththeCSRFrameworkforPublicListedCompanieslaunchedbyBursaMalaysiaSecuritiesBerhad(“BursaSecurities”).

The Group emphasises CSR on four main focal areas,whicharetheEnvironment,theCommunity,theWorkplaceandtheMarketplace,innoorderofpriority.

the envIronMentJCBunderstands that tobesociallyresponsibleandplayanactualroleinpreservingtheenvironment,itisessentialto operate in an environmentally conscious manner.Whenever and wherever possible, the Group has madeeffortstoreducetheimpactofourbusinessactivityontheenvironment,especiallyinsignificantareasofimpactsuchaselectricityusage.

JCB continues to support the Earth Hour campaign, ayearlyeventthatencouragescommunitiesworldwidetoturnoff non-essential lights for one hour. All our boutiques inshoppingmallsacrossMalaysiareducedthenumberoflightsontheretailfloororwindowsforEarthHouron19March.

Jerasia Capital Berhad (“JCB”) as a group believes that the fundamental principles of good corporate governance and responsibility lie in the fact that organisations should place a firm commitment towards Corporate Social responsibility (“CSr”) activities. JCB’s vision in CSr is based on being a socially responsible and caring corporate citizen, which places a strong weightage towards achieving a balance between profitability and contributions.

The Group also strives to reduce the amount ofnatural resources used, by using electronic means ofcommunication instead of paper, and minimising travelwhichemitscarbonemissionsbyusingvideoconferencingandSkypewheneverpossible.

the coMMunItYDuring the course of the year, JCB made donations toorphanagesforthemtobeabletoprovidefortheunder-privilegedchildren.

The Group also has an internship programme forundergraduateswhohaveaninterestinthefashionretailindustry.Fromatimeframeof1-3months,theprogrammeexposesour interns to thewidevalue-chainspectrumofthefashion industrytoprovidethemahands-onlearningexperience.

In September 2015, the yearly haze that blankets overMalaysiawasexceptionallybad,withPollutantStandardsIndex(PSI)readingsreachingveryunhealthylevelsofover200.TheGroupdistributedN95maskstoemployeesoftheGroup, as well as to the students and staff of university


015

coRpoRAte socIAlResponsIbIlIty

stAtement

Kuala Lumpur, so that they will be protected from thehazardousconditionsbroughtaboutbythehazeshoulditbenecessarythattheycarryouttheirdutiesoutdoors.

the WorkPlaceJCB is committed in its social responsibilities at theworkplacebyhavinginplaceasafetycommitteetooverseethe safety, health and welfare at work for all employeesand sending staff for workshops on safety in order toensurethatworkingconditionsareincompliancewiththerequirements of the occupational Safety and Health Act1994(oSHA).

In addition, JCB prioritises the welfare of its staff andhas made commitments towards enhancing academicadvancements for its staff as well as providing thenecessarymedicalfinancialaid.

Subsequent to the financial period ended 30 June 2016,theGroupwaspresentedwithanawardbytheEmployeesProvidentFund(EPF)attheirrecentAppreciationCeremonyon 29th September 2016. This Certificate of AppreciationwasawardedtotheGroupforhavingoutstandingrecords,diligentlyandresponsiblycontributingtotheEPFonbehalfoftheemployeraswellasitsemployees.

the MarketPlaceJCBrecognisesthatattentiontogoodcorporategovernanceensures that business sustainability is developed andmaintained.Inlinewiththis,theGroup’sCodeofConductserves as the standard for business ethics and conductof the Group, creating a corporate culture in which thebusiness of the Group is conducted in an ethical andprofessional manner and where the highest standards ofprofessionalismareupheld.

Furthermore, theGroupemphasisesandencourages theusageofpaperbagsinsteadofplasticbagsinaneffortto“gogreen”.

Inlinewithourcorporatepoliciesonpromotingbusinesssustainabilitythroughgoodcorporatesocialresponsibility,JCBfullyintendstocontinuetoexplorenewopportunitiesto increase our contribution to the community. ourcommitmentandsincerityingivingsomethingbacktothecommunitiesinwhichweoperatewillcontinuetoremainsteadfastandconsistent.


016

AuDIt commIttee

RepoRt

TheBoardofDirectorsofJerasiaCapitalBerhadispleasedtopresenttheAuditCommitteeReportforthefinancialperiodended30June2016.

I. coMPosItIon TheAuditCommittee(AC)comprisesoffourmembers,allofwhomareNon-ExecutiveDirectors(NEDs),threebeingIndependentNEDs.Thismeetstherequirementsofparagraph15.09(1)(b)oftheMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad(MMLR).TheACChairman,Dato’TanYikHuayisaFellowoftheCharteredAssociationofCertifiedAccountants,unitedKingdom,amemberoftheMalaysianInstituteofAccountantsandalifememberoftheMalaysianAssociationofCertifiedPublicAccountants.Assuch,Jerasiacomplieswithparagraph15.09(1)(c)(i)oftheMMLR.

TheACcomprisedofthefollowingNEDsduringthefinancialperiodended30June2016:-

Chairman: Dato’TanYikHuay(IndependentNED)Members: Dato’NikMohamedDinbinDatukNikYusoff(IndependentNED) Dato’DrYongYuanTan(Non-IndependentNED) MrAndrewHongTatBeng(IndependentNED)

II. MeetIngs and MInutesDuringthefinancialperiodended30June2016,theACheldatotalofsix(6)meetings.ThedetailsofattendanceoftheACmembersareasfollows:-

MeMBerS oF tHe AuDIt CoMMIttee NuMBer oF MeetINgS AtteNDeD

Dato’TanYikHuay 6/6Dato’NikMohamedDinbinDatukNikYusoff 4/6Dato’DrYongYuanTan 6/6MrAndrewHongTatBeng 6/6

DeliberationsduringtheACmeetingswererecorded.MinutesoftheACmeetingsweretabledforconfirmationatthefollowingACmeetingandsubsequentlypresentedtotheBoardfornotation.TheChairmanoftheACreportsonkeyissuesdiscussedateachmeetingtotheBoard.

TheChairmanoftheAChadengagedonacontinuousbasiswiththeManagement,InternalAuditorandtheExternalAuditors,inordertokeepabreastofmattersandissuespertainingtotheGroup.TheACChairmanalsoconveyedtotheBoardmattersofsignificantconcernasandwhenraisedbytheExternalAuditorsorInternalAuditor.

III. authorItY and dutIesThetermsofreferenceoftheACwhichlaiddownitsfunctionsanddutiesisaccessibleviatheCompany’swebsiteatwww.jerasia.biz.


017

Iv. suMMarY of actIvItIes and Work durIng the fInancIal PerIod ended 30 June 2016Duringthefinancialperiodended30June2016,theactivitiesandworkoftheACincludedthefollowing:-

1. FINANCIAL reportINg

TheACreviewedthequarterlyfinancialresultsandannualauditedfinancialstatementsoftheGroup,anddulyrecommendedthemtotheBoardforapproval.

In the review of the quarterly financial results and annual audited financial statements, the AC focusedparticularlyonanychangesinorimplementationofmajoraccountingpolicieschanges,significant,unusualeventsandcompliancewithaccountingstandardsandotherlegalrequirements.TheAC’srecommendationswerepresentedattheBoardmeetingsforapproval.

2. exterNAL AuDIt

a. TheACundertookanassessmenttoassesstheperformance,suitabilityandindependenceoftheExternalAuditorsanditsfees.TheExternalAuditorsprovideadeclarationofitscompliancewiththerelevantethicalrequirementsregardingprofessional independence.Beingsatisfiedwith theperformance,suitabilityandtheauditindependenceoftheexternalauditors,theACrecommendedfortheBoard’sapprovaltheappointmentofMessrsSJGrant&ThorntonasExternalAuditorsoftheCompany.

b. TheACreviewedandapprovedtheprovisionofnon-auditservicesbyExternalAuditorsanditsfees.Inconsideringthatthenatureofnon-auditserviceswillnotimpairtheindependenceandobjectivityoftheExternalAuditors,theACapprovedtheprovisionofthenon-auditservicesbytheexternalauditors.

c. TheACreviewedwith theexternalauditors theresultsof theannualauditedfinancialstatement,managementletterandmanagement’sresponsetothefindingsoftheExternalAuditorsandalsotheAuditors’reporttotheshareholders.

d. TheACreviewedwiththeexternalauditors,theannualStatementonRiskManagementandInternalControlforinclusioninthe2015AnnualReport.

e. TheACalsodiscussedandfolloweduponresolutionsonauditissuesandrecommendationsoftheexternalauditorsarisingfromannualaudit.

f. The AC deliberated on the proposed change of financial reporting period of the Company and itssubsidiaries from31March2016to30June2016.HavinghadtheManagementconsulted the taxconsultants and external auditors on the proposed change and satisfied itself that there will notbematerial issuesresultingfromthechange,theACrecommendedtotheBoardforapprovaltheproposedchangeoffinancialreportingperiod.

g. TheACreviewedwiththeexternalauditorsthestatutoryauditplanforthefinancialperiodended30 June 2016 and the proposed fees for the statutory audit and review of the Statement on RiskManagementandInternalControl.TheACalsoapprovedthestatutoryauditplanforthefinancialperiodended30June2016.

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h. TheACheldtwoprivatemeetingswiththeexternalauditorswheretheexternalauditorsweregivenopportunities to raise issuesorareasofconcern, ifany,without thepresenceofexecutiveBoardmembersandtheManagement.Duringtheprivatesessionwiththeexternalauditors,itwasnotedthattheexternalauditorshadaprofessionalandgoodworkingrelationshipwithManagement.

3. INterNAL AuDIt

a. The AC reviewed internal audit reports prepared by the Internal Audit function on findings andrecommendations with respect to systems and control deficiencies and follow up reports onoutstandingissuesarisingfromprioraudits.TheACreviewedtheauditfindingsandrecommendationstoimproveanydeficienciesornon-compliance,andtheManagement’sresponsesthereto.

b. TheACreviewedtheinternalauditplanforthefinancialperiodending30June2017anddeterminedthatauditcoveragebeexpanded.TheAC thereafterapproved therevised internalauditplanwithexpandedauditcoverage.

c. TheACreviewed theadequacyof thescope, functions,competencyandresourcesof the internalauditfunctionsandwhetherithasthenecessaryauthoritytocarryoutitswork.

Internal audIt functIonTheinternalauditfunctionisperformedin-house.ItreportsfunctionallytotheAC.InternalAuditundertakesfunctionsbasedontheauditplanthatisreviewedandapprovedbytheAC.

The internalaudit functionadoptsariskbasedauditingapproach,prioritisingauditassignmentsbasedonthegroup’sbusinessactivity,riskmanagementandpastauditfindings.Itreviewsthekeycontrolsanditsadequacyinrespondingtoriskswithintheorganisation’sgovernance,operationsandinformationsystem,assessprincipalrisksandplansofactiontoaddresstheserisksandrecommendsimprovementstotheexistingsystemsandcontrols. Inaddition,InternalAuditperformsfollow-upsonoutstandingissuesarisingfromprioraudits.

Duringthefinancialperiodended30June2016, internalauditfunctionhadcompletedandreportedauditassignmentscoveringreviewsoftheCorporateRiskRegister,GoodsandServicestaxadministrationfortheretailandmanufacturingdivisions, insurancecoverage,enterprise riskmanagementpolicy&proceduresand itsapplications,and followuponoutstanding issues arising from prior audits. The total costs incurred for the Internal Audit function in respect of thefinancialperiodended30June2016wasapproximatelyRM73,900.

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The Board of Directors of Jerasia Capital Berhad is committed to maintain good corporate governance for long-termsustainablegrowthandtosafeguard,protectandenhanceshareholders’value.

This Statement on Corporate Governance aims to provide insights to the shareholdersand investors on the corporategovernancepracticesoftheCompanyforthefinancialperiodended30June2016.

1 estaBlIsh clear roles and resPonsIBIlItIes1.1 CLeAr FuNCtIoNS oF tHe BoArD AND MANAgeMeNt

TheBoardofDirectors(“Board”)isresponsiblefortheoverallgovernanceoftheCompanyandforoverseeingthemanagementandbusinessaffairs.AllBoardmembersareexpectedtoshowgoodstewardshipandactinaprofessionalmanner,aswellasupholdthecorevaluesofintegrityandenterprisewithdueregardtotheirfiduciarydutiesandresponsibilities.

TheBoardhasdelegatedcertainresponsibilitiestotheBoardCommittees,allofwhichoperatewithindefinedterms of reference to assist the Board in the execution of its duties and responsibilities. The respectiveCommitteesreporttotheBoardonmattersdiscussedanddeliberatedandmakesrecommendationstotheBoardforfinaldecision.TheBoardCommitteesincludetheAuditCommittee,theNominationCommitteeandtheRemunerationCommittee.

The Executive Directors, representing the Management, are committed to and responsible for themanagement of the Company’s business to ensure that the Company operates within a framework ofprudentandeffectivecontrols.

1.2 CLeAr roLeS AND reSpoNSIBILItIeS

TheBoardhaswideresponsibilitieswhicharedischargedinthebestinterestoftheCompany.AmongthekeyresponsibilitiesoftheBoardareasdescribedbelow:-

a. reviewing and adopting the Company’s strategic plans

The Board discharged its role in leading the directions of the Group, satisfying itself that themanagementhascontinuedtodrivebusinessgrowthandpromotessustainability,safeguardingthewelfareofthepeopleandcommunitywithinaharmoniousstateoftheenvironment.

b. overseeing the conduct of the Company’s business

The Executive Directors are responsible for the day-to-day management of the business andoperationsoftheGroup.Management’sperformance,undertheleadershipoftheExecutiveDeputyChairmanandGroupManagingDirector, isassessedbytheBoardthroughupdatesoftheGroup’soperatingdriversandfinancialperformanceduringeachreportingperiod.TheBoard isalsokeptinformedofkeystrategicinitiatives,materialoperationalissues,ifany,andtheGroup’sperformance.

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c. Identifying principal risks and ensuring the implementation of appropriate internal controls and mitigation measures

A statement featuring the Group’s risk management framework and internal control system isincludedinpages30to32ofthisAnnualReport.

d. Succession planning

Indischargingitsresponsibilityonsuccessionplanning,theBoardreceivesupdatesonsuccessionplanning which is a continuous process that takes place in the Group. In line with the expressedsuccessionplanninggoals,theGroupconsistentlydevelopshumancapital.Emphasiswillcontinuetobeplacedonassessingleadershipandmanagementpotentialofemployeesforallkeypositionsincludingseniormanagementpositions.Thesuccessionplanningprocessidentifiesandfostersthenextgenerationofleadersthroughmentoringandtraining,sotheyarereadytotakethehelmwhenthetimecomes.Leadersareheldaccountableforthedevelopmentoftheirpeople.

e. overseeing the development and implementation of a shareholder communications policy for the Company

ThemainfeaturesoftheCompany’sshareholdercommunicationprocessisdescribedonpage29ofthisAnnualReport.

f. reviewing the adequacy and the integrity of the management information and internal control system of the Company

TheBoardisultimatelyresponsiblefortheadequacyandintegrityoftheCompany’sinternalcontrolsystem.DetailspertainingtotheGroup’sinternalcontrolsystemisavailableintheStatementonRiskManagementandInternalControlofthisAnnualReport.

1.3 CoDe oF CoNDuCt

The Jerasia Group, its Directors, Management and employees firmly believe in creating a corporateculturetooperatethebusinessesoftheGroupinanethicalmannerandtoupholdthehigheststandardsof professionalism and exemplary corporate conduct. The Board has established a Code of Conduct forDirectorsandemployees(“Code”).TheCodeservestooutlinethestandardsofbusinessconductandethicalbehaviourwhichtheDirectorsandemployeesshouldpossessindischargingtheirdutiesandresponsibilities.TheCodeispublishedontheCompany’swebsiteatwww.jerasia.biz.

1.4 StrAtegIeS proMotINg SuStAINABILItY

TheCompanyaimstopromotesustainabilitybygivingattentiontoenvironmental,socialandgovernanceresponsibilities.TheCompanyunderstandsthatduediligencemustbepaidinordertodevelopandensureasustainablefuture.AdetailedreportontheCompany’ssustainabilityactivitiesappearsintheCorporateSocialResponsibilityStatement.


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1.5 ACCeSS to INForMAtIoN AND ADvICe

AllDirectorsareprovidedwithBoardmeetingdossierswithsufficientnotice toenable them toobtainacomprehensive understanding of the issues to be deliberated upon and enable them to discharge theirdutieseffectively.TheyalsohaveunrestrictedaccesstoallinformationwithregardtotheactivitiesoftheGroupandwiththeseniormanagement.AllmembersoftheBoardhaveaccesstotheadviceandservicesofindependentprofessionaladvisors,wherenecessary.

1.6 QuALIFIeD AND CoMpeteNt CoMpANY SeCretArY

TheBoardisregularlyupdatedandappraisedbytheCompanySecretaryonnewregulationsissuedbytheregulatoryauthorities.

TheCompanySecretaryattendsandensuresthatallBoardmeetingsareproperlyconvened,andthatproperminutesofdeliberationsanddecisionsoftheBoardandBoardCommitteesarerecorded.

TheCompanySecretaryworkscloselywithManagementtoensuretimelyandappropriateinformationflowwithinandtotheBoard.

1.7 BoArD CHArter

The Board Charter sets out the key values and principles of the Company, the composition, roles andresponsibilities of the Board. It also sets out the division of responsibilities between the Chairman andGroupManagingDirector,BoardandManagementaswellasthedifferentcommitteesestablishedbytheBoard.ItactsasasourcereferenceandprimaryinductionliteraturetoprovideinsightstoprospectiveBoardmembersandseniormanagement.

TheBoardCharterisavailableattheCompany’swebsiteatwww.jerasia.biz.

2 strengthen coMPosItIon2.1 NoMINAtIoN CoMMIttee

TheNominationCommittee(NC)comprisesexclusivelyofthefollowingNon-ExecutiveDirectors,amajorityofwhomareindependent:-

• Dato’TanYikHuay(Chairman)• Dato’NikMohamedDinbinDatukNikYusoff(Member)• Dato’DrYongYuanTan(Member)• MrAndrewHongTatBeng(Member)

The terms of reference of the NC which spells out its duties and responsibilities is accessible via theCompany’swebsiteatwww.jerasia.biz.


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TheNCmetfour(4)timesduringthefinancialperiodended30June2016.ThedetailsofattendanceoftheNCmembersareasfollows:-

Members of the Nomination Committee Number of Meetings Attended

Dato’TanYikHuay 4/4Dato’NikMohamedDinbinDatukNikYusoff 3/4Dato’DrYongYuanTan 4/4MrAndrewHongTatBeng(Appointedon14/7/2015) 2/2

Duringthefinancialperiodended30June2016,theactivitiesoftheNCincludedthefollowing:-

(i) ReviewofcandidateforappointmentasaNCmember

TheNCreviewedandrecommendedfortheBoard’sapproval,theappointmentofMrAndrewHongTatBeng,anIndependentNon-ExecutiveDirectorasamemberoftheNC.TheNC’sconsiderationofcriteriaonselectionofcandidateforappointmentasamemberoftheNCincludedexperience,professionalism,integrity,timecommitmentandabilitytodischargefunctionsandresponsibilitieswhenexpected.

(ii) Reviewofredesignationofpositions

TheNCreviewedandrecommendedfor theBoard’sapproval, theredesignationof thepositionofDatukYapFungKong fromGroupManagingDirector toExecutiveDeputyChairman following theintentionofDato’DrYongYuanTantoberedesignatedfromNon-IndependentNon-ExecutiveDeputyChairmantoNon-IndependentNon-ExecutiveDirectoroftheCompany.

TheNCalsoreviewedandrecommendedfortheBoard’sapproval,theredesignationofpositionofMrPronobKumarSenGuptafromDeputyGroupManagingDirectortoGroupManagingDirector.

(iii) ReviewofDirectorsproposedforre-election/re-appointment

TheNCreviewedandrecommendedtotheBoard,thoseretiringDirectorswhowereeligibletostandforre-election/re-appointmentatthe15thAnnualGeneralMeetingoftheCompany.

TheNCassessedtheindependenceoftheIndependentDirectors.

(iv) BoardAssessment

The NC conducted an annual assessment and evaluation of the Board, Board Committees andindividual Directors including review of the board composition, mix of skills, independence anddiversity(includinggenderdiversity)requiredtomeettheneedsoftheCompany.

(v) ReviewtheperformanceofAuditCommittee

TheNCreviewedthetermofofficeandperformanceoftheAuditCommittee(AC)anditsmembersandrecommendedfortheBoard’sapproval,thecontinuationofserviceoftheexistingmembersoftheAC.



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(vi) ReviewofExecutiveDirectors

The NC reviewed and recommended for the Board’s approval, the re-appointment of ExecutiveDirectorswhosecontractofserviceweredueforrenewal.

Annual assessment

The NC conducts annually, assessments of the Board members, Board Committees and the individualdirectors. The assessment involves individual directors and committee members completing separateevaluation questionnaires covering areas which include, amongst others, the Board composition andstructure,operations,rolesandresponsibilities,skillsandcompetencies,andperformance/contributionoftheBoardCommittees.TheprocessalsoassessedindividualDirector’scontributiontointeraction,qualityofinputandunderstandingofrolesandresponsibilitiesasaDirector.ThecriteriafortheevaluationareguidedbytheCorporateGovernanceGuide–TowardsBoardroomExcellence.TheNCreviewedtheoverallresultsoftheassessmentconductedandthereaftertabledthesametotheBoardfordeliberation.

Boardroom Diversity

The Directors have a diverse set of skills, experience and knowledge necessary to govern the Group.Together,theybringawiderangeofcompetencies,capabilities,skillsandrelevantbusinessexperiencetoleadtheGroup.

TheBoardisawareofthegenderdiversityinitiativesandtargetsestablishedbytheMalaysianGovernment.WhenappointingaDirector,theNCandtheBoardwillalwaysevaluateandmatchthecriteriaofthecandidatetotheBoardbasedonexperience,expertise,skills,competency,knowledgeandpotentialcontribution,andalsogivingdueconsiderationforboardroomdiversityobjectives.

The Board does not set any specific target for boardroom diversity but will work towards achieving theappropriateboardroomdiversity.TheBoardbelievesinprovidingequalopportunitiestocandidatesbasedonmerit.Femalerepresentationwillbeconsideredwhensuitablecandidatesareidentified.

Inaddition,theNCconsidersthefollowingcriteriaintheboardnominationandelectionprocessofdirectors:-

• Professionalism.• Integrity.• Timecommitment.• Abilitytodischargefunctionsandresponsibilitiesexpected.



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2.2 reMuNerAtIoN CoMMIttee

The Remuneration Committee comprises of the following Directors, a majority of whom are Independent Non-ExecutiveDirectors:-

• Dato’NikMohamedDinbinDatukNikYusoff(Chairman)• Dato’TanYikHuay(Member)• MrPronobKumarSenGupta(Member)

The Board recognises that the levels of remuneration should be sufficient to attract and retain the ExecutiveDirectors needed to run the Company professionally and successfully. The remuneration package is structuredtorewardindividualperformances.Non-ExecutiveDirectorsarepaiddirector’sfeesforservingasDirectorsand/orChairmanontheBoardanditsCommittees.TheDirectors’feesareapprovedattheannualgeneralmeetingbyshareholders.

TheRemunerationCommitteeisresponsibleforrecommendingtotheBoardtheframeworkofExecutiveDirectors’remunerationandtheremunerationpackageofeachExecutiveDirector.ExecutiveDirectorsdonotparticipateindecisionsregardingtheirownremunerationpackage.Directors’feesareapprovedattheAnnualGeneralMeetingbytheshareholders.TheRemunerationCommitteeheldonemeetingduringthefinancialperiodended30June2016whichwasattendedbyallmembers.

Details of the aggregate remuneration of the Directors during the financial period ended 30 June 2016 are asfollows:-

Defined Contribution Fees Salaries Bonus plans total rM rM rM rM rM

reCeIveD oN group BASIS ExecutiveDirectors - 1,950,000 60,000 242,042 2,252,042

reCeIveD FroM tHe CoMpANY Non-ExecutiveDirectors 170,000 - - - 170,000

received on group Basis received from the Company remuneration Bands (rM) No. of executive Directors No. of Non-executive Directors

Notexceeding50,000 - 5 1,050,001to1,100,000 1 - 1,150,001to1,200,000 1 -



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3 reInforce IndePendence3.1 ASSeSSMeNt oF INDepeNDeNCe

1. TheBoardrecognisestheimportanceofindependenceandobjectivityinitsdecisionmakingprocess.TheIndependentNon-ExecutiveDirectorsplayacrucialroleofbringingobjectivitytothedecisionsmadebytheBoard.Theyprovideindependentjudgementandobjectivitywithoutbeingsubordinatedtooperationalconsiderations.Theyhelptoensurethattheinterestsofallstakeholdersaretakenintoaccount.TheBoardassesstheindependenceofanIndependentDirectorthroughtheAssessmentofIndependenceofIndependentDirectorsundertheannulBoardevaluationprocess.Theassessmentof independenceisbasedonthecriteriaprescribedundertheMainMarketListingRequirements.During the financial period, none of the Independent Directors disclosed any relationships and/ortransactionsthatcouldinterferewiththeirindependentjudgementsorabilitytoactinthebestinterestoftheCompany.

3.2 teNure oF INDepeNDeNt DIreCtorS

The Malaysian Code on Corporate Governance 2012 (“MCCG 2012”) recommends that the tenure ofindependentdirectorsshouldnotexceedacumulativetermofnineyears.uponcompletionofthenineyears,anIndependentDirectormaycontinuetoserveontheBoardsubjecttore-designationoftheIndependentDirectorasaNon-IndependentDirector.However,iftheBoardintendstoretainanIndependentDirectorwhohasservedforacontinuousperiodofmorethannineyearsinasimilarcapacity,thentheBoardmustjustifyandseekshareholders’approvalbeforethesaidIndependentDirectorcancontinuetoactinsuchcapacityassetoutinRecommendation3.3oftheMCCG2012.

TheBoardisoftheviewthattheindependenceoftheIndependentDirectorsshouldnotbedeterminedsolelyby their tenureofservice.TheCompanynominatesandappoints individualsofhighcalibreand integrityanddoesnotbelievethatatermofmorethannineyearscanimpairtheindependenceofsuchindividuals.Dato’NikMohamedDinbinDatukNikYusoffandDato’TanYikHuay,whohaveservedontheBoardformorethannineyears,haveincumbentknowledgeoftheCompany’sandGroup’sactivitiesandcorporatehistoryandprovideinvaluablecontributionstotheBoard.TheyprovideunbiasedandbalancedviewstotheGroup’sstrategicdirectionandgovernance.

TheBoard through theNC,hasassessed the independenceof the IndependentNon-ExecutiveDirectorsbasedoncriteriasetoutintheListingRequirementsofBursaMalaysiaSecuritiesBerhadtakingintoaccounttheindividualDirector’sabilitytoexerciseindependentandobjectivejudgmentatalltimes.

TheNCandBoardhaddeterminedthatthetwoIndependentDirectorswhohaveservedontheBoardformorethannineyears,remainobjectiveandindependentwiththefollowingjustifications:-

• BothhaveconfirmedanddeclaredthattheyareIndependentDirectorsasdefinedundertheMMLR.

• NeitherhaveanyconflictsofinterestwiththeCompany.

• BothDirectorsdonotparticipateintheday-to-daymanagementoftheJerasiaGroupandtheyremainfreeofanybusinessrelationshipwiththeCompanywhichcouldreasonablybeperceivedtointerferewiththeirexerciseofindependentjudgement.



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• BothDirectorsbring their independent judgement tobearon thedecision-makingprocessof theGroup to ensure a fully balanced and unbiased deliberation process is in place to safeguard theinterestofshareholders.

TheBoardwassatisfiedwith the levelof independencedemonstratedbyall IndependentNon-ExecutiveDirectorsandhence,hadretainedthemasIndependentNon-ExecutiveDirectorsoftheCompany.

3.3 SegregAtIoN oF poSItIoNS oF CHAIrMAN AND MANAgINg DIreCtor

TheBoardhassegregatedtherolesandresponsibilityfortherunningoftheBoardandthemanagementoftheGroup’sbusiness.

TheChairmanoftheBoardisDato’NikMohamedDinbinDatukNikYusoff,anIndependentNon-ExecutiveDirector,whofocusesonleadershipandensuringeffectivenessoftheBoard.

TheGroupManagingDirectorisMrPronobKumarSenGupta,whotogetherwithDatukYapFungKong,the Executive Deputy Chairman manage the Group’s business, operations and implementation of theBoard’sdecisions.

3.4 CoMpoSItIoN oF tHe BoArD

TheBoardisledandmanagedbyexperiencedBoardmembersfromdiversebackgroundswithawiderangeofexpertise.Ithasseven(7)members,comprisingtwo(2)ExecutiveDirectorsandfive(5)Non-ExecutiveDirectors. Amongst the Non-Executive Directors, three (3) are Independent Non-Executive DirectorsincludingtheChairman.Thisfulfillstheprescribedrequirementforone-thirdoftheBoardtobeindependentasstatedintheMMLR.

4 foster coMMItMent4.1 tIMe CoMMItMeNt

The Board meets at quarterly intervals with additional meetings convened when urgent and importantdecisions need to be taken between scheduled meetings. Six (6) Board meetings were held during thefinancialperiodended30June2016,withattendanceoftheBoardmembersasfollows:-

MeMBerS oF tHe BoArD NuMBer oF MeetINgS AtteNDeD

Dato’NikMohamedDinbinDatukNikYusoff 4outof6meetingsDatukYapFungKong 6outof6meetingsMrPronobKumarSenGupta 6outof6meetingsDato’TanYikHuay 6outof6meetingsDato’DrYongYuanTan 6outof6meetingsDato’SriMohdHaniffbinAbdAziz 6outof6meetingsMrAndrewHongTatBeng 6outof6meetings

TheBoardissatisfiedwiththelevelofcommitmentgivenbytheDirectorstowardsfulfillingtheirrolesandresponsibilities.



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4.2 DIreCtorS’ trAININg

TheBoardunderstandstheimportanceofcontinuingeducationtoensureallDirectorsareequippedwiththe necessary skills and knowledge to better fulfill their responsibilities. The Board acknowledges thatDirectors’trainingisanongoingprocessandismindfuloftheneedforcontinuoustrainingtokeepabreastofindustrydevelopmentsandtrends.TheDirectorsareencouragedtoattendtrainingsessionsandseminarsinaccordancewiththeirrespectiveneedsindischargingtheirdutiesasDirectors.EachDirectorcandeterminetheareasoftrainingthathemayrequireforpersonaldevelopmentasaDirectororasamemberofaBoardCommittee.

Duringthefinancialperiod,allDirectorsoftheCompanyattendedacourseonIncomeTaxandGoodsandServicesTaxupdate,whichwasconducted in-house. Inaddition,Directorscontinuouslyreceivebriefingsandupdateson theGroup’sbusinessesandoperations,newdevelopments in thebusinessenvironment,corporategovernanceandnewregulatoryrequirements.TheBoardcontinuestoassessthetrainingneedsofitsDirectors.

5 uPhold IntegrItY In fInancIal rePortIng5.1 CoMpLIANCe wItH AppLICABLe FINANCIAL reportINg StANDArDS

Inpresentingtheannualfinancialstatementsandquarterlyannouncementstoshareholders,theBoardofDirectorsaimstopresentabalancedandaclearassessmentoftheGroup’sfinancialpositionandprospects.

Tothisend,theAuditCommittee(AC)reviewsthequarterlyandannualfinancialstatementsoftheCompanyand the Group prior to submission to the Board of Directors for consideration and approval to ensurecompliancewithapplicablefinancialreportingstandards.

5.2 ASSeSSMeNt oF SuItABILItY AND INDepeNDeNCe oF exterNAL AuDItorS

TheBoardmaintainsa transparentandprofessional relationshipwith theExternalAuditors through theAudit Committee. under existing practices, the AC met the external auditors twice during this financialperiodtodiscusstheirauditplanandtheirauditfindingsontheCompany’sannualfinancialstatements.Inaddition,theACwillalsohaveprivatemeetingswiththeexternalauditorswithoutthepresenceoftheManagementtoenableexchangeofviewsonissuesrequiringattention.

TheAChadundertakenanassessmentonthesuitabilityandindependenceoftheexternalauditors.

In its assessment, the AC considered several factors, which included the adequacy of experience andresourcesof thefirmandtheprofessionalstaffassignedtotheauditandthelevelofnon-auditservicesrendered by the external auditors to the Company. The external auditors provided a declaration of itscompliance with the relevant ethical requirements regarding professional independence. Being satisfiedwiththeperformance,suitabilityandtheauditindependenceoftheexternalauditors,theACrecommendedfortheBoard’sapprovaltheappointmentofMessrsSJGrant&ThorntonasexternalauditorsoftheCompany.



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Theamountofexternalauditfeesandnon-auditfeesincurredforthefinancialperiodended30June2016wereasfollows:-

Fee incurred Audit Fee (rM’000) Non-Audit Fee (rM’000)

TheCompany 20 10

TheGroup 188 47

Thenon-auditserviceswereinrespectofverificationofinventoriesheldonhandforclaimingspecialrefundspursuant to the requirements of the Goods and Services Tax Act 2014, review of an overseas subsidiarystatutoryauditor’swork,reviewofsalesverificationtoshoppingmallmanagementandstatementofriskmanagementandinternalcontrol.

6 recognIse and Manage rIsks6.1 SouND FrAMework to MANAge rISkS

TheBoardisresponsibleforestablishingandmaintainingasoundriskmanagementandinternalcontrolsystemtoensurethattheshareholders’investmentsandassetsoftheCompanyaresafeguarded.TheBoardthrough itsAuditCommitteeevaluates theadequacyandeffectivenessof the internal control systembyreviewingauditfindings,recommendationsofinternalauditor,managementresponsesandactionstakenonlapses.

An overview of the Group’s internal controls system and risk management framework is detailed in theStatementonRiskManagementandInternalControl.

TheCompanycontinuestomaintainandreviewitsinternalcontrolprocedurestoensure,asfaraspossible,itsassetsanditsshareholders’investmentsareprotected.

6.2 INterNAL AuDIt FuNCtIoN

TheinternalauditfunctioniscarriedoutbytheInternalAuditDepartmentthatreportsfunctionallytotheAC,andisfurtherdetailedintheAuditCommitteeReport.



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7 ensure tIMelY and hIgh QualItY dIsclosure7.1 CorporAte DISCLoSure

TheBoardacknowledgestheimportancetoprovideshareholdersandinvestorswithcomprehensive,timelyandaccuratedisclosures relating to theCompany. Investor relationsactivitiessuchas interviewsby thepress fromtimeto timeareattendedby theChairmanand/orExecutiveDirectors toexplain theGroup’sstrategy,performanceandmajordevelopments.TheCompanyhasalsoidentifiedpersonsauthorizedandresponsibleforthehandlingofmaterialinformation.

TheCompanyobservedtheCorporateDisclosureGuideissuedbyBursaMalaysiaSecuritiesBerhadaswellasadheringtoandcomplyingwiththedisclosurerequirementsoftheMMLR.

8 strengthen relatIonshIP BetWen the coMPanY and shareholders8.1 SHAreHoLDer pArtICIpAtIoN At geNerAL MeetINgS

TheCompanyprovidesinformationtoshareholdersregardingdetailsoftheAnnualGeneralMeeting(AGM),theirentitlementtoattendtheAGM,therighttoappointaproxyaswellasthequalificationsofaproxy.Allrelevant information isdisclosedtoshareholders inadvanceof theAGMtoallowshareholderssufficienttimetogothroughandenablethemtoexercisetheirrights.

8.2 eFFeCtIve CoMMuNICAtIoN AND proACtIve eNgAgeMeNt

TheBoardviewstheAGMastheprincipalforumfordialoguewithshareholders.TheChairmanandBoardmembersareinattendanceattheAGMtoprovideexplanationstoallshareholderqueriesduringtheopenquestionandanswersessiononmattersrelatingtotheresolutionsbeingproposedaswellastheGroup’sbusinessandaffairs.

TheBoardappreciatesfeedbackfromtheirvaluedshareholdersandinthisregard,investorrelationsaimtoserveasachannelforshareholderstoprovidesuchfeedbackandviewsontheGroup’sperformanceanddirection.

other InforMatIonMAterIAL CoNtrACtS

Therewerenomaterialcontractssubsistingasattheendofthefinancialperiodorenteredintosincetheendofthepreviousfinancialyear,bytheCompanyoritssubsidiaries,whichinvolvedtheinterestoftheDirectorsandmajorshareholders.



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InteRnAl contRol

Inrelationtoriskmanagementandinternalcontrol,theBoardofDirectors(the“Board”)ofJerasiaCapitalBerhadarepleasedtofurnishtheStatementonRiskManagementandInternalControlwhichhasbeenpreparedinaccordancewiththeGuidelinesforDirectorsofListedIssuersunderBursaSecuritiesMainMarketListingRequirement.

Board’s resPonsIBIlItIesTheBoard,withassistancefromtheExecutivesandSeniorManagementhasestablishedaneffectiveriskmanagementframeworkandinternalcontrolsystems.Thecontrolframeworkisembeddedintotheprocesses,structuresandcultureoftheGroup.However,theBoardrecognisesthatsuchsystemsaredesignedtomanagerisksratherthaneliminatethem,andcanprovideonlyareasonableandnotabsoluteassuranceagainstanymaterialmisstatement,lossorirregularities.

TheBoardhasreceivedassurancesfromtheExecutiveDeputyChairmanandtheGroupManagingDirectorthattheriskmanagementandinternalcontrolsystemsareoperatingadequatelyandeffectively,inallmaterialaspects,basedontheriskmanagementandinternalcontrolframeworkoftheGroup.

TheBoardhasdelegatedtotheAuditCommitteetoreviewtheriskmanagementandinternalcontrolprocessesandreports.

keY eleMents of rIsk ManageMent and Internal control sYsteMsThekeyelementsoftheGroup’sriskmanagementandinternalcontrolsystemsaredescribedbelow:

• Policiesandstandardoperatingproceduresareclearlydefineddocumentedandappropriatelycommunicatedtoalllevels.Thesepoliciesandproceduresarereviewedregularlyandupdatedwhennecessary,tomeetoperational,changesinbusinessenvironmentandreportingneeds.

• ClearlydefineddelegationofresponsibilitiestotheBoardCommitteesandtheManagement,includingorganisationalstructureandappropriateauthoritylimits.Thelimitsofdelegatedauthorityarereviewedperiodicallyandupdatedwhennecessary.

• TheBoardholdsregularmeetingswherepertinentmattersarehighlightedanddiscussed,thusensuringthattheBoardmaintainsaneffectivesupervisionoverappropriatecontrolsandriskissues.TheBoardisalsokeptupdatedontheGroup’sactivitiesduringregularmeetings.

• TheBoardandtheAuditCommitteereviewsthefinancialperformanceandcashflowreportsof theGrouponaquarterlybasis.

• Comprehensive information is provided to the Board and the Audit Committee for monitoring of performanceagainststrategicplans,coveringallkeyfinancialandoperationalindicators.

• TheAuditCommitteereviewsriskmanagementandinternalcontrolissuesidentifiedininternalauditreportsandExternalAuditors’managementletters.

• ThereareperiodicinternalauditreviewsofthekeyactivitiesoftheGroup’sbusinessesandbusinessunitstoassesstheadequacyandeffectivenessofinternalcontrol.


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stAtement on RIsK mAnAGement AnDInteRnAl contRol

• TheInternalAuditDepartmentreviewsalloperationalandfinancialareasoftheGroupandensuresthatproceduralcompliancesaremetandcarriedout.

• Awhistleblowingpolicywasputinplacesubsequenttothefinancialperiodtofacilitateandencouragewhistleblowing.This policy ensures that there are appropriate, transparent and confidential feedback channels available toemployeesandstakeholders,andwhennecessary,toraiseconcernsaboutanypossibleimproprieties,improperconductorothermalpracticesoccurringwithintheGroup.

During the financial period under review, some deficiencies in internal control were identified. However, as thesedeficienciesdidnotmaterially impacted theGroup’sbusinessoroperations inanyway, theywerenot included in thisstatement.Nevertheless,measurestocorrectthesedeficiencieshavebeentakenorarebeingtaken.

rIsk ManageMent functIonTheBoard,infulfillingitsresponsibilities,hasestablishedanoperationalorganisationalstructurewithclearlydefinedlinesofaccountabilityanddelegatedauthority.Aprocessofhierarchicalreportingisalsoinplacetoprovideforadocumentedandauditabletrailofaccountability.Inaddition,allemployeesareinstilledwithariskawarenessculture,whichemphasizestheneedforstrongcorporategovernance,effectivecommunication,commitmenttocompliancewithlaws,regulationsandinternalcontrols,andintegrityinallresponsibilities.

TheGrouphasinplaceanongoingprocessforidentifying,evaluatingandmanaginganysignificantrisksfacedbytheGroupthroughoutthefinancialperiodunderreview.ThelevelofrisktoleranceoftheGroupisexpressedthroughtheuseofariskimpactandlikelihoodmatrix.TheGroupwillonlyacceptacommerciallevelofriskthatwillprovidereasonableassuranceonthelongtermprofitabilityandsustainabilityoftheGroup.

TheManagementalsoperiodicallyreviewsareasofriskassociatedwiththeGroup’sbusinessandoperationsincludingfinancialrisk,operationalriskandstrategicrisktoensurethecorporateobjectivesandstrategiesareachievedwithintheacceptableriskparameters.AriskprofileoftheGrouphadbeendeveloped,whichtogetherwithasummaryofthekeyfindingsandcorrespondingactionplans,arepresentedanddiscussedattheAuditCommitteeandBoardmeetings.

TheBoard through theAuditCommittee,who isassistedby the InternalAuditDepartment,periodically reviews theseprocessesaswellas theriskmanagement frameworkasanongoingcommitment tocontinuouslystrengthentheriskmanagementandcontrolenvironmentoftheCompany.

Duringthefinancialperiod,alldepartmentshaveupdatedtherespectiveriskprofiles,reviewedinternalcontrolsystemsandproposedinternalcontrolprocessestoenhanceefficienciesofthedailyoperationswhichisinturn,reviewedbytheInternalAuditDepartmentandreportedtotheAuditCommitteeonatimelymanner.

Internal audIt functIonTheGrouphasadequatelyresourcedtheinternalauditfunctionwhichactsindependentlyandwhoseprimaryresponsibilityistoassuretheBoard,throughtheAuditCommittee,thattheinternalcontrolsystemsfunctionoperateatdifferentlevelsofeffectiveness.


032

stAtement on RIsK mAnAGement AnDInteRnAl contRol

TheHeadofInternalAudit/MonitoringandComplianceannuallysubmitstheinternalauditplantotheAuditCommitteeforreviewandapproval.Theinternalauditplanconsistsoftheworkscheduleforthenextfinancialyear.Theinternalauditplanisdevelopedbasedonprioritizationoftheaudituniverseusingarisk-basedapproach.AnysignificantdeviationfromtheapprovedplanwillbecommunicatedtotheAuditCommitteeand/orManagementthroughperiodicactivityreports.

on a quarterly basis, the Head of Internal Audit/Monitoring and Compliance presents to the Audit Committee on theinternalauditreportsinaccordancewithitsapprovedplan.Includedintheauditreports,therearerecommendedcorrectivemeasuresondeficienciesininternalcontrol,ifany,forManagementtobeimplemented.TheInternalAuditDepartmentalsoreportsonothermattersthatarerequiredand/orrequestedbytheBoardand/orAuditCommittee.

revIeW of stateMent BY external audItorsAsrequiredbyparagraph15.23oftheMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad,theExternalAuditors,MessrsSJGrantThornton,havereviewedthisStatementonRiskManagementandInternalControlinaccordancewiththeRecommendedPracticeGuide5(Revised)issuedbytheMalaysianInstituteofAccountants,forinclusionintheAnnualReportforthefinancialperiodfrom1April2015to30June2016andreportedtotheBoardthatnothinghascometotheirattentionthatcausesthemtobelievethattheStatementisinconsistentwiththeirunderstandingoftheprocessesthattheBoardhasadoptedinthereviewoftheadequacyandeffectivenessofriskmanagementandinternalcontrolsystemswithintheGroup.RPG5(Revised)doesnotrequiretheExternalAuditorstoconsiderwhetherthisStatementcoversallriskandcontrols,ortoformanopinionontheadequacyandeffectivenessoftheriskmanagementandinternalcontrolsystemoftheGroupincludingtheassessmentandopinionbytheBoardandmanagementthereon.

conclusIonTheBoardisoftheviewthattheriskmanagementframeworkandinternalcontrolsystemsthathavebeeninstitutedaresatisfactoryandadequatetoprovidereasonableassurancetosafeguardtheGroup’sassetsandshareholders’investments,andasaresulttherewerenomateriallossesincurredduringthefinancialperiodunderreview.

TheStatementonRiskManagementand InternalControl ismade inaccordancewitha resolutionof theBoarddated4october2016.


033

The Directors are required by the Companies Act, 1965(“the Act”) to prepare financial statements for eachfinancial year which have been made out in accordancewith applicable Malaysian Financial Reporting Standards(“MFRSs”), International Financial Reporting Standards(“IFRSs”)andtherequirementsoftheAct.

TheDirectorsareresponsibletoensurethatthefinancialstatementsgiveatrueandfairviewofthestateofaffairsoftheGroupandoftheCompanyattheendofthefinancialyear,andoftheresultsandcashflowsoftheGroupandoftheCompanyforthefinancialyear.

Inpreparingthefinancialstatements,theDirectorshave:-

• adoptedappropriateaccountingpoliciesandappliedthemconsistently;

stAtement of DIRectoRs’

ResponsIbIlItyfor PreParIng the fInancIal stateMents

• madejudgementsandestimatesthatarereasonableandprudent;and

• prepared the financial statements on a goingconcernbasis.

TheDirectorsareresponsibletoensurethattheGroupandtheCompanykeepaccountingrecordswhichdisclosethefinancial position of the Group and of the Company withreasonable accuracy, enabling them to ensure that thefinancialstatementscomplywiththeAct.

TheDirectorsareresponsiblefortakingsuchstepsasarereasonably open to them to safeguard the assets of theGroupandtheCompany,andtodetectandprevent fraudandotherirregularities.


034


036

Directors’

report

TheDirectorshavepleasureinsubmittingtheirreporttogetherwiththeauditedfinancialstatementsoftheGroupandoftheCompanyforthefinancialperiodfrom1April2015to30June2016.

PRINCIPAL ACTIVITIESTheprincipalactivitiesoftheCompanyareinvestmentholdingandtheprovisionofmanagementconsultancyservicestosubsidiarieswithintheGroup.TheprincipalactivitiesofitssubsidiariesaredisclosedinNote6tothefinancialstatements.

There have been no significant changes in the nature of the activities of the Company and its subsidiaries during thefinancialperiod.

RESULTS Group Company RM RM

ProfitforthefinancialperiodattributabletoownersoftheCompany 7,112,460 109,690

DIVIDENDSTherewerenodividendsproposed,declaredorpaidbytheCompanysincetheendofthepreviousfinancialyear.

RESERVES AND PROVISIONSTherewerenomaterialtransferstoorfromreservesorprovisionsduringthefinancialperiod,exceptforthosedisclosedinthefinancialstatements.

DIRECTORSTheDirectorsinofficesincethedateofthelastreportareasfollows:-

Dato’NikMohamedDinbinDatukNikYusoffDatukYapFungKongPronobKumarSenGuptaDato’TanYikHuayDato’DrYongYuanTanDato’SriMohdHaniffbinAbdAzizAndrewHongTatBeng

FOR THE FINANCIAL PERIOD FROM 1 APRIL 2015 TO 30 JUNE 2016


037

Directors’report


DIRECTORS’ INTERESTSInaccordancetotheRegisterofDirectors’Shareholdings,thebeneficialinterestsofthosewhowereDirectorsattheendofthefinancialperiodinthesharesoftheCompanyareasfollows:-

NuMbeRofoRdiNaRyshaResofRM1eaCh at atdirectinterests 1.4.2015 bought sold 30.6.2016

DatukYapFungKong 23,205,004 - - 23,205,004Dato’DrYongYuanTan 12,810,000 - - 12,810,000Dato’SriMohdHaniffbinAbdAziz 10,980,002 - - 10,980,002Dato’TanYikHuay 120,000 - - 120,000AndrewHongTatBeng 28,000 - (28,000) -Dato’NikMohamedDinbinDatukNikYusoff 10,000 - - 10,000

ByvirtueoftheirinterestsinthesharesoftheCompany,DatukYapFungKongandDato’DrYongYuanTanaredeemedtohaveaninterestinthesharesinthesubsidiariestotheextenttheCompanyhasaninterestunderSection6AoftheCompaniesAct1965.

DIRECTORS’ BENEFITSDuringandattheendofthefinancialperiod,noarrangementssubsistedtowhichtheCompanyisaparty,withtheobjectorobjectsofenablingDirectorsoftheCompanytoacquirebenefitsbymeansoftheacquisitionofsharesinordebenturesoftheCompanyoranyotherbodycorporate.

Sincetheendofthepreviousfinancialyear,noDirectorhasreceivedorbecomeentitledtoreceiveanybenefit(otherthanbenefitsincludedintheaggregateamountofemolumentsreceivedordueandreceivablebyDirectorsorthefixedsalaryofafulltimeemployeeoftheCompanyasshowninthenotestothefinancialstatements)byreasonofacontractmadebytheCompanyorarelatedcorporationwiththeDirectororwithafirmofwhichtheDirectorisamember,orwithacompanyinwhichtheDirectorhasasubstantialfinancialinterest.

ISSUE OF SHARES AND DEBENTURESTherewasnoissuanceofsharesordebenturesduringthefinancialperiod.


038

OTHER STATUTORY INFORMATIONBeforethefinancialstatementsoftheGroupandoftheCompanyweremadeout,theDirectorstookreasonablesteps:-

(a) toascertainthatactionhadbeentakeninrelationtothewritingoffofbaddebtsandthemakingofprovisionfordoubtfuldebtsandsatisfiedthemselvesthatallknownbaddebtshadbeenwrittenoffandnoprovisionfordoubtfuldebtswasrequired;and

(b) toensurethatanycurrentassetswhichwereunlikelytoberealisedintheordinarycourseofbusinessincluding

theirvaluesasshownintheaccountingrecordsoftheGroupandoftheCompanyhavebeenwrittendowntoanamountwhichtheymightbeexpectedsotorealise.

Atthedateofthisreport,theDirectorsarenotawareofanycircumstances:-

(a) whichwouldrenderitnecessarytomakeanyprovisionfordoubtfuldebtsinthefinancialstatementsoftheGroupandoftheCompanyortheamountwrittenoffforbaddebtsinadequatetoanysubstantialextent;or

(b) whichwould render the valuesattributed tocurrentassets in thefinancial statementsof theGroupandof theCompanymisleading;or

(c) whichhavearisenwhichrenderadherencetotheexistingmethodofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate;or

(d) nototherwisedealtwith inthereportorthefinancialstatementswhichwouldrenderanyamountstated inthefinancialstatementsmisleading.

Atthedateofthisreport,theredoesnotexist:-

(a) anychargeontheassetsoftheGroupandoftheCompanywhichhasarisensincetheendofthefinancialperiodwhichsecurestheliabilityofanyotherperson;or

(b) anycontingentliabilityoftheGroupandoftheCompanywhichhasarisensincetheendofthefinancialperiod.

IntheopinionoftheDirectors:-

(a) nocontingentorotherliabilityhasbecomeenforceableorislikelytobecomeenforceablewithintheperiodoftwelvemonthsaftertheendofthefinancialperiodwhich,intheopinionoftheDirectors,willormayaffecttheabilityoftheGroupandoftheCompanytomeettheirobligationsasandwhentheyfalldue;

(b) theresultsofoperationsoftheGroupandoftheCompanyduringthefinancialperiodwerenotsubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature;and

(c) noitem,transactionoreventofamaterialandunusualnaturehasarisenintheintervalbetweentheendofthefinancialperiodandthedateofthereportwhichislikelytoaffectsubstantiallytheresultsoftheoperationsoftheGroupandoftheCompanyinthefinancialperiodinwhichthisreportismade.

Directors’reportFOR THE FINANCIAL PERIOD FROM 1 APRIL 2015 TO 30 JUNE 2016


039


Directors’report

AUDITORSTheAuditors,MessrsSJGrantThornton,haveexpressedtheirwillingnesstocontinueinoffice.

SignedonbehalfoftheBoardofDirectorsinaccordancewiththeDirectors’resolutiondated4October2016.

daTuKyaPfuNGKoNGDirector

PRoNobKuMaRseNGuPTaDirectorKualaLumpur


040

stAteMeNt BY

Directors

stAtUtorY

DecLArAtioN

PURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965

PURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965

IntheopinionoftheDirectors,thefinancialstatementssetoutonpages43to98aredrawnupinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct,1965inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat30June2016andoftheirfinancialperformanceandcashflowsforthefinancialperiodfrom1April2015to30June2016.

In the opinion of the Directors, the information set out on page 99 to the financial statements had been compiled inaccordancewith theGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLosses intheContextofDisclosuresPursuanttoBursaMalaysiaSecuritiesBerhadListingRequirements,issuedbytheMalaysianInstituteofAccountants,andpresentedbasedontheformatprescribedbyBursaMalaysiaSecuritiesBerhad.

SignedonbehalfoftheBoardofDirectorsinaccordancewiththeDirectors’resolutiondated4October2016.

daTuKyaPfuNGKoNG PRoNobKuMaRseNGuPTaDirector Director

KualaLumpur

I, Pronob Kumar Sen Gupta, being the Director primarily responsible for the financial management of Jerasia CapitalBerhad, do solemnly and sincerely declare that to the best of my knowledge and belief, the financial statements setoutonpages43to98andthefinancial informationsetoutonpage99arecorrectandImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

Subscribedandsolemnlydeclaredby )theabovenamedatKualaLumpurin )theFederalTerritorythisdayof )4October2016. ) PRoNobKuMaRseNGuPTa DirectorBeforeme:s.aRuLsaMy(W.490)CommissionerforOaths


041

iNDepeNDeNt AUDitors’

reportTO THE MEMBERS OF JERASIA CAPITAL BERHAD (INCORPORATED IN MALAYSIA) COMPANY NO: 503248 - A

REPORT ON THE FINANCIAL STATEMENTSWehaveauditedthefinancialstatementsofJerasiaCapitalBerhad,whichcomprisestatementsoffinancialpositionasat30June2016of theGroupandof theCompany,andstatementsofprofitor lossandothercomprehensive income,statementsofchangesinequityandstatementsofcashflowsoftheGroupandoftheCompanyforthefinancialperiodfrom1April2015to30June2016,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation,assetoutonpages43to98.

Directors’ResponsibilityfortheFinancialStatements

The Directors of the Company are responsible for the preparation of financial statements so as give a true and fairview in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards andtherequirementsof theCompaniesAct,1965 inMalaysia.TheDirectorsarealsoresponsible forsuch internalcontrolas the Directors determine is necessary to enable the preparation of financial statements that are free from materialmisstatements,whetherduetofraudorerror.

Auditors’Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our auditin accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financialstatements.Theproceduresselecteddependonourjudgement,includingtheassessmentofrisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheentity’spreparationoffinancialstatementsthatgivesatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.AnauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebytheDirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

Inouropinion,thefinancialstatementsgiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat30June2016andoftheirfinancialperformanceandcashflowsforthefinancialperiodfrom1April2015to30June2016inaccordancewithMalaysianFinancialReportingStandards, InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct,1965inMalaysia.


042

iNDepeNDeNt AUDitors’reportTO THE MEMBERS OF JERASIA CAPITAL BERHAD (INCORPORATED IN MALAYSIA) COMPANY NO: 503248 - A

REPORT ON OTHER LEgAL AND REgULATORY REqUIREMENTS InaccordancewiththerequirementsoftheCompaniesAct,1965inMalaysia,wealsoreportthefollowing:-

(a) Inouropinion,theaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyanditsMalaysiansubsidiarieshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

(b) Wehaveconsideredthefinancialstatementsandtheauditors’reportofthesubsidiaryofwhichwehavenotactedasauditorswhichisindicatedinNote6tothefinancialstatements.

(c) Wearesatisfiedthat theaccountsof thesubsidiariesthathavebeenconsolidatedwiththeCompany’sfinancialstatementsare in formandcontentappropriateandproper for thepurposesof thepreparationof thefinancialstatementsoftheGroupandwehavereceivedsatisfactoryinformationandexplanationsrequiredbyusforthosepurposes.

(d) Theauditor’sreportsontheaccountsofthesubsidiariesdidnotcontainanyqualificationoranyadversecommentmadeunderSection174(3)oftheAct.

OtherReportingResponsibilities

Thesupplementaryinformationsetoutonpage99isdisclosedtomeettherequirementsofBursaMalaysiaSecuritiesBerhadandisnotpartofthefinancialstatements.TheDirectorsareresponsibleforthepreparationofthesupplementaryinformation inaccordancewithGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosurePursuanttoBursaMalaysiaSecuritiesBerhadListingRequirements,asissuedbytheMalaysianInstituteofAccountants(“MIAGuidance”)andthedirectiveofBursaMalaysiaSecuritiesBerhad.Inouropinion,thesupplementaryinformationisprepared,inallmaterialrespects,inaccordancewiththeMIAGuidanceandthedirectiveofBursaMalaysiaSecuritiesBerhad.

OTHER MATTERSThisreportismadesolelytothemembersoftheCompany,asabody,inaccordancewithSection174oftheCompaniesAct,1965inMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

sJGRaNTThoRNToN suNGfoNGfui(NO.AF:0737) (NO:2971/08/17(J))CHARTEREDACCOUNTANTS CHARTEREDACCOUNTANT

KualaLumpur4October2016


043

Group Company Note 30.6.2016 31.3.2015 30.6.2016 31.3.2015 RM RM RM RM

asseTsNoN-CuRReNTasseTsProperty,plantandequipment 4 62,632,110 42,905,002 - -Intangibleassets 5 30,827,441 30,030,402 - -Investmentinsubsidiaries 6 - - 101,892,628 101,892,628Deferredtaxassets 7 1,270,927 1,533,293 - -

Totalnon-currentassets 94,730,478 74,468,697 101,892,628 101,892,628

CuRReNTasseTsInventories 8 82,128,234 62,944,145 - -Tradeandotherreceivables 9 94,703,426 78,053,948 2,000 2,000Taxrecoverable 491,777 - - -Cashandbankbalances 9,822,897 10,227,947 38,023 56,333

Totalcurrentassets 187,146,334 151,226,040 40,023 58,333

ToTaLasseTs 281,876,812 225,694,737 101,932,651 101,950,961

eQuiTyaNdLiabiLiTieseQuiTyequityattributabletoownersoftheCompany:Sharecapital 10 82,046,114 82,046,114 82,046,114 82,046,114Foreignexchangetranslationreserve (1,049,559) (1,739,228) - -Retainedearnings 60,945,867 53,833,407 11,509,445 11,399,755

ToTaLeQuiTy 141,942,422 134,140,293 93,555,559 93,445,869

NoN-CuRReNTLiabiLiTiesDeferredtaxliabilities 7 1,125,385 783,718 - -Bankborrowings(unsecured) 11 12,319,291 6,744,449 - -

Totalnon-currentliabilities 13,444,676 7,528,167 - -

CuRReNTLiabiLiTiesTradeandotherpayables 12 36,055,050 17,578,106 34,500 32,500Taxpayable - 280,821 - -Amountduetosubsidiaries 13 - - 8,342,592 8,472,592Bankborrowings(unsecured) 11 90,434,664 66,167,350 - -

Totalcurrentliabilities 126,489,714 84,026,277 8,377,092 8,505,092

ToTaLLiabiLiTies 139,934,390 91,554,444 8,377,092 8,505,092

ToTaLeQuiTyaNdLiabiLiTies 281,876,812 225,694,737 101,932,651 101,950,961

Theaccompanyingnotesformanintegralpartofthefinancialstatements.

stAteMeNts oF

FiNANciAL positioNAS AT 30 JUNE 2016


044

stAteMeNts oF proFit or Loss AND otHer coMpreHeNsiVe iNcoMeFOR THE FINANCIAL PERIOD FROM 1 APRIL 2015 TO 30 JUNE 2016

Group Company 1.4.2015 1.4.2014 1.4.2015 1.4.2014 to to to to Note 30.6.2016 31.3.2015 30.6.2016 31.3.2015 RM RM RM RM

Revenue 14 503,609,566 337,232,251 480,000 300,000Costofsales (348,649,934) (233,570,002) - -

Grossprofit 154,959,632 103,662,249 480,000 300,000Otheroperatingincome 3,172,392 6,248,857 - -Sellinganddistributionexpenses (32,612,891) (28,382,747) - -Otheroperatingexpenses (111,585,678) (68,041,847) (370,310) (268,444)Financecosts (4,765,223) (2,579,680) - -

Profitbeforetax 15 9,168,232 10,906,832 109,690 31,556Taxexpense 16 (2,055,772) (878,323) - (181)

Profitforthefinancialperiod/year 7,112,460 10,028,509 109,690 31,375

othercomprehensiveincome,netoftaxForeignexchangetranslationreserve 689,669 733,400 - -

Totalcomprehensiveincomeforthe financialperiod/yearattributableto ownersoftheCompany 7,802,129 10,761,909 109,690 31,375

Earningspershareattributabletoowners oftheCompany(sen):- - Basicanddiluted 17 8.67 12.22



045


stAteMeNts oF

cHANGes iN eQUitYFOR THE FINANCIAL PERIOD FROM 1 APRIL 2015 TO 30 JUNE 2016

attributabletoownersoftheCompany Non-distributable distributable foreign exchange share translation Retained Total capital reserve earnings equityGroup RM RM RM RM

Balanceasat1April2014 82,046,114 (2,472,628) 43,804,898 123,378,384

Profitforthefinancialyear - - 10,028,509 10,028,509Othercomprehensiveincome - 733,400 - 733,400

Totalcomprehensiveincomeforthefinancialyear - 733,400 10,028,509 10,761,909

Balanceasat31March2015 82,046,114 (1,739,228) 53,833,407 134,140,293

Profitforthefinancialperiod - - 7,112,460 7,112,460Othercomprehensiveincome - 689,669 - 689,669

Totalcomprehensiveincomeforthefinancialperiod - 689,669 7,112,460 7,802,129

Balanceasat30June2016 82,046,114 (1,049,559) 60,945,867 141,942,422

CompanyBalanceasat1April2014 82,046,114 - 11,368,380 93,414,494Profit/Totalcomprehensiveincomeforthe financialyear - - 31,375 31,375

Balanceasat31March2015 82,046,114 - 11,399,755 93,445,869Profit/Totalcomprehensiveincomeforthe financialperiod - - 109,690 109,690

Balanceasat30June2016 82,046,114 - 11,509,445 93,555,559


046

stAteMeNts oF

cAsH FLoWsFOR THE FINANCIAL PERIOD FROM 1 APRIL 2015 TO 30 JUNE 2016


oPeRaTiNGaCTiViTiesProfitbeforetax 9,168,232 10,906,832 109,690 31,556

adjustmentsfor:-Baddebtswrittenoff 61,006 181,455 - -Depreciationofproperty,plantandequipment 13,748,139 8,837,124 - -Dividendincome - - (480,000) (300,000)Gainondisposalofproperty,plantand equipment (6,185) (54,416) - -Interestexpense 4,765,223 2,579,680 - -Interestincome (13,657) (2,329) - -Inventorieswrittenoff - 201,449 - -Inventorieswrittendown - 166,008 - -Property,plantandequipmentwrittenoff 97,445 152,640 - -Unrealisedgainonforeignexchange (561,133) (4,510,596) - -

Operatingprofit/(loss)beforeworking capitalchanges 27,259,070 18,457,847 (370,310) (268,444)

Changesinworkingcapital:- Inventories (17,876,266) (67,593) - - Receivables (12,249,165) (8,808,023) - - Payables 15,028,465 (3,236,310) 2,000 5,500

Cashgeneratedfrom/(usedin)operations 12,162,104 6,345,921 (368,310) (262,944)Tax(paid)/refunded (2,224,337) (1,910,432) - 34,859

Netcashfrom/(usedin)operatingactivities 9,937,767 4,435,489 (368,310) (228,085)

iNVesTiNGaCTiViTiesDividendreceived - - 480,000 300,000Interestreceived 13,657 2,329 - -Subsidiaries - - (130,000) (50,000)Purchaseofintangibleassets (797,039) (846,239) - -Purchaseofproperty,plantandequipment (33,458,589) (12,809,783) - -Proceedsfromdisposalofproperty,plantand equipment 23,241 54,420 - -

Netcash(usedin)/frominvestingactivities (34,218,730) (13,599,273) 350,000 250,000


047



fiNaNCiNGaCTiViTiesNetproceedsoftermloans 8,396,113 7,450,832 - -Netproceedsofbankers’acceptances 5,825,000 3,048,000 - -Net(repayments)/proceedsofrevolvingcredits (1,550,000) 4,250,000 - -Netproceedsoftrustreceipts 15,637,915 2,929,906 - -Interestpaid (4,765,223) (2,579,680) - -

Netcashfromfinancingactivities 23,543,805 15,099,058 - -

CashaNdCasheQuiVaLeNTsNetchanges (737,158) 5,935,274 (18,310) 21,915Effectofchangesinexchangerate 277,907 29,142 - -Broughtforward 9,139,954 3,175,538 56,333 34,418

Carriedforward A 8,680,703 9,139,954 38,023 56,333

NoTeTosTaTeMeNTsofCashfLoWs

a. CashaNdCasheQuiVaLeNTs

Cashandcashequivalentsincludedinthestatementsofcashflowscomprisethefollowingamounts:-

Group Company Note 30.6.2016 31.3.2015 30.6.2016 31.3.2015 RM RM RM RM

Cashandbankbalances 9,822,897 10,227,947 38,023 56,333 Bankoverdrafts 11 (1,142,194) (1,087,993) - -

8,680,703 9,139,954 38,023 56,333

stAteMeNts oFcAsH FLoWs



048

Notes to tHe FiNANciAL

stAteMeNts FOR THE FINANCIAL PERIOD FROM 1 APRIL 2015 TO 30 JUNE 2016

1. gENERAL INFORMATIONTheCompanyisapubliclimitedliabilitycompany,incorporatedanddomiciledinMalaysiaandlistedontheMainMarketofBursaMalaysiaSecuritiesBerhad.TheregisteredofficeislocatedatSuite1008,10thFloor,WismaLimFooYong,No.86,JalanRajaChulan,50200KualaLumpur.TheprincipalplaceofbusinessoftheCompanyislocatedatNo.2-8,Lorong6E/91,TamanShamelinPerkasa,Batu31/2,JalanCheras,56100KualaLumpur.

The principal activities of the Company are investment holding and the provision of management consultancyservicestosubsidiarieswithintheGroup.TheprincipalactivitiesofitssubsidiariesaredisclosedinNote6tothefinancialstatementsrespectively.

TherehavebeennosignificantchangesinthenatureoftheactivitiesoftheCompanyanditssubsidiariesduringthefinancialperiod.

The financial statements were authorised for issue by the Board of Directors in accordance with the Directors’resolutiondated4October2016.

2. BASIS OF PREPARATION2.1 statementofCompliance

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedinaccordancewithMalaysianFinancialReportingStandards (“MFRSs”), InternationalFinancialReportingStandards (“IFRSs”)and therequirementsoftheCompaniesAct,1965inMalaysia.

2.2 basisofMeasurement

ThefinancialstatementsoftheGroupandoftheCompanyarepreparedunderthehistoricalcostconvention,unlessotherwisedisclosedinthesignificantaccountingpolicies.

Historicalcost isgenerallybasedon the fairvalueof theconsiderationgiven inexchange forgoodsandservices.

Fairvalue is theprice thatwouldbereceived tosellanassetorpaid to transfera liability inanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Thefairvaluemeasurementisbasedonthepresumptionthatthetransactiontoselltheassetortransfertheliabilitytakesplaceeitherintheprincipalmarketfortheassetorliability,orintheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetorliability.TheprincipalorthemostadvantageousmarketmustbeaccessibletobytheGroup.

Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability,assumingthatmarketparticipantsactintheireconomicbestinterest.

A fair value measurement of a non-financial market takes into account a market participant’s ability togenerateeconomicbenefitsbyusingtheassetinitshighestandbestuseorbysellingittoanothermarketparticipantthatwouldusetheassetinitshighestandbestuse.


049

NOTES TO THE FINANCIALSTATEMENTS


2. BASIS OF PREPARATION (CONT’D)2.2 basisofMeasurement(Cont’d)

TheGroupand theCompanyusevaluation techniques thatareappropriate in thecircumstancesand forwhichsufficientdataareavailabletomeasurefairvalue,maximisingtheuseofrelevantobservableinputsandminimisingtheuseofunobservableinputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements arecategorised within the fair value hierarchy, described as follows, based on the lowest level input that issignificanttotheirfairvaluemeasurementasawhole:-

Level1 - Quoted(unadjusted)marketpricesinactivemarketsfortheidenticalassets.

Level2 - Valuation techniques for which the lowest level input that is significant to their fairvaluemeasurementisdirectlyorindirectlyobservable.

Level3 - Valuation techniques for which the lowest level input that is significant to their fairvaluemeasurementisunobservable.

Forassetsandliabilitiesthatarerecognisedinthefinancialstatementsonarecurringbasis,theGroupandtheCompanydeterminewhethertransfershaveoccurredbetweenlevelsinthehierarchybyre-assessingcategorisation(basedonthelowestlevelinputthatissignificanttotheirfairvaluemeasurementasawhole)attheendofeachreportingperiod.

Forthepurposeoffairvaluedisclosures,theGroupandtheCompanyhavedeterminedclassesofassetsandliabilitiesonthebasisofthenature,characteristicsandrisksoftheassetorliabilityandtheleveloffairvaluehierarchyasexplainedabove.

2.3 functionalandPresentationCurrency

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


050

NOTES TO THE FINANCIALSTATEMENTS FOR THE FINANCIAL PERIOD FROM 1 APRIL 2015 TO 30 JUNE 2016

2. BASIS OF PREPARATION (CONT’D)2.4 adoptionofamendmentstoMfRssandiCinterpretations(“iCint”)

The Group and the Company have consistently applied the accounting policies set out in Note 3 to thefinancialstatementstoallperiodspresentedinthesefinancialstatements,exceptforthechangesbelow.

At the beginning of current financial period, the Group and the Company have adopted amendmentstoMFRSsandICIntwhicharemandatorilyeffectivefortheaccountingperiodthatbeginsonorafter1April2015.

InitialapplicationoftheamendmentstothestandardsandICIntdidnothavematerialimpacttothefinancialstatements.2.4.1 annualimprovementtoMfRs2010-2012Cycle

MFRS13FairValueMeasurement

It clarifies that the basis for conclusion that short-term receivables and payables with no statedinterestratescanbemeasuredatinvoiceamountswhentheeffectofdiscountingisimmaterial.

2.4.2 annualimprovementstoMfRss2011–2013Cycle

MFRS13FairValueMeasurement

The amendment clarifies that the portfolio exception in MFRS 13 can be applied not only to thefinancialassetsandfinancialliabilities,butalsotoothercontractswithinthescopeofMFRS9(orMFRS139,asapplicable).

TheadoptionofamendmentsdoesnothavematerialimpactontheCompany’sfinancialstatements.

2.5 standardsissuedbutNotyeteffective

At the date of authorisation of these financial statements, certain new standards, amendments andinterpretationstoexistingstandardshavebeenpublishedbytheMalaysianAccountingStandardsBoardbutarenotyeteffective,andhavenotbeenadoptedbytheCompany.

Management anticipates that all of these relevant pronouncements will be adopted in the Company’saccountingpoliciesforthefirstperiodbeginningaftertheeffectivedateofthepronouncement.Informationon new standards, amendments and interpretations that are expected to be relevant to the Company’sfinancialstatementsisprovidedbelow.CertainothernewstandardsandinterpretationshavebeenissuedbutarenotexpectedtohaveamaterialimpactontheCompany’sfinancialstatements.


051



2. BASIS OF PREPARATION (CONT’D)2.5 standardsissuedbutNotyeteffective(Cont’d)

MFRS9FinancialInstruments–effective1January2018

MFRS9replacesMFRS139FinancialInstruments:RecognitionandMeasurementandallpreviousversionof MFRS 9. The new standard introduces extensive requirements and guidance for classification andmeasurementoffinancialassetsandfinancialliabilitieswhichfallunderthescopeofMFRS9,new“expectedcreditlossmodel”undertheimpairmentoffinancialassetsandgreaterflexibilityhasbeenallowedinhedgeaccountingtransactions.UponadoptionofMFRS9,financialassetswillbemeasuredateitherfairvalueoramortisedcost.ItisalsoexpectedthattheGroup’sinvestmentinunquotedshareswillbemeasuredatfairvaluethroughothercomprehensiveincome.

TheadoptionofMFRS9willresultinachangeinaccountingpolicy.TheCompanyiscurrentlyassessingtheimpactofMFRS9andplanstoadoptthenewstandardontherequiredeffectivedate.

MFRS15RevenuefromContractswithCustomers–effective1January2018

MFRS15presentsnewrequirementsfortherecognitionofrevenue,replacingtheguidanceofMFRS111ConstructionContracts,MFRS118Revenue,ICInt13CustomerLoyaltyProgrammes,ICInt15AgreementsforConstructionofRealEstate, IC Int18TransfersofAssets fromCustomersand IC Int131Revenue–Barter Transaction Involving Advertising Services. The principles in MFRS 15 provide a more structuredapproach to measuring and recognising revenue. It establishes a new five-step model that will apply torevenuearisingfromcontractswithcustomers.UnderMFRS15revenueisrecognisedatanamountthatreflectstheconsiderationtowhichanentityexpectstobeentitled inexchangefor transferringgoodsorservicestoacustomer.


MFRS16Leases–effective1January2019

MFRS16replacesMFRS117Leases.MFRS16eliminates thedistinctionbetweenfinanceandoperatingleases for lessees. As off-balance sheet will no longer be allowed except for some limited practicalexemptions,allleaseswillbebroughtontothestatementoffinancialpositionbyrecognisinga“right-of-use”assetandaleaseliability.Inotherwords,foralesseethathasmaterialoperatingleases,theassetsandliabilitiesreportedonitsstatementoffinancialpositionareexpectedtoincreasesubstantially.


AmendmentstoMFRS107StatementofCashFlows:DisclosureInitiative–effective1January2017

The amendments require entities to provide disclosures that enable users of financial statements toevaluatechangesinliabilitiesarisingfromfinancialactivities,includingchangesfromcashflowsandnon-cashchanges.Thedisclosurerequirementcouldbesatisfiedinvariousways,andonemethodisbyprovidingreconciliationbetweentheopeningandclosingbalancesinthestatementoffinancialpositionforliabilitiesarisingfromfinancingactivities.


052


2. BASIS OF PREPARATION (CONT’D)2.6 significantaccountingestimatesandJudgements

Estimates,assumptionsconcerningthefutureandjudgementsaremadeinthepreparationofthefinancialstatements.TheyaffecttheapplicationoftheGroup’sandoftheCompany’saccountingpoliciesandreportedamounts of assets, liabilities, income and expenses, and disclosures made. Estimates and underlyingassumptionsareassessedonanon-goingbasisandarebasedonexperienceandrelevantfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.Theactualresultsmaydifferfromthejudgements,estimatesandassumptionsmadebymanagement,andwillseldomequaltheestimatedresults.

2.6.1 estimationuncertainty

Informationaboutsignificantjudgements,estimatesandassumptionsthathavethemostsignificanteffect on recognition and measurement of assets, liabilities, income and expenses are discussedbelow.

Usefullivesofdepreciationassets

Property,plantandequipmentaredepreciatedonastraightlinebasisovertheirestimatedusefullives.Managementestimates theuseful livesof theproperty,plantandequipment tobewithin5to99yearsandreviewstheusefullivesofdepreciableassetsattheendofeachreportingperiod.At30June2016,managementassessesthat theuseful livesrepresent theexpectedutilityof theassetstotheCompany.ThecarryingamountsaredisclosedinNote4tothefinancialstatements.Actualresults,however,mayvaryduetochange in theexpected levelofusageandtechnologicaldevelopments,whichmayresultintheadjustmenttotheGroup’sandtotheCompany’sassets.

A 1% difference in the expected useful lives of the property, plant and equipment from themanagement’sestimateswouldresultinaninsignificantimpact.

Impairmentofloansandreceivables

TheGroupassessesateachreportingdatewhetherthereisanyobjectiveevidencethatafinancialassetisimpaired.Factorssuchasprobabilityofinsolvencyorsignificantfinancialdifficultiesofthereceivablesanddefaultorsignificantdelayinpaymentsareconsideredindeterminingwhetherthereisobjectiveevidenceofimpairment.Wherethereisobjectiveevidenceofimpairment,theamountandtimingoffuturecashflowsareestimatedbasedonhistoricallossexperienceforassetswithsimilarcredit riskcharacteristics. If theexpectation isdifferent from theestimation,suchdifferencewillimpactthecarryingvalueofreceivables.

A1%differenceintheimpairmentmadeinloansandreceivablesfromthemanagement’sestimateswouldresultinaninsignificantimpact.


053



2. BASIS OF PREPARATION (CONT’D)2.6 significantaccountingestimatesandJudgements(Cont’d)

2.6.1 estimationuncertainty(Cont’d)

Impairmentofgoodwill

An impairment loss is recognised for the amount by which the asset’s or cash-generating unit’scarryingamountexceedsitsrecoverableamount.Todeterminetherecoverableamount,managementestimates expected future cash flows from each cash-generating unit and determines a suitableinterestrateinordertocalculatethepresentvalueofthosecashflows.Intheprocessofmeasuringexpected future cash flows management makes assumptions about future operating results. Theactualresultsmayvary,andmaycauseadjustmentstotheGroup’sassets.

In most cases, determining the applicable discount rate involves estimating the appropriateadjustmenttomarketriskandtheappropriateadjustmenttoasset-specificriskfactors.

The carrying amount of goodwill as at the reporting date is disclosed in Note 5 to the financialstatements.

A1%differenceinthegoodwillfromthemanagement’sestimateswouldresultinaninsignificantimpact.

Impairmentofentrancefees

Theusefullifeofentrancefeeisassessedtobeinfinite.Intangibleassetswithinfiniteusefullifearecarryingoncostandsubjecttoimpairmentreviewatleastannually.Theimpairmenttestofentrancefeeisassessedonbrandbasis,amalgamatingalltheindividualentrancefees.

An impairment loss is recognised for the amount by which the asset’s or cash-generating unit’scarryingamountexceedsitsrecoverableamount.Todeterminetherecoverableamount,managementestimates expected future cash flows from each cash-generating unit and determines a suitableinterestrateinordertocalculatethepresentvalueofthosecashflows.Intheprocessofmeasuringexpected future cash flows management makes assumptions about future operating results. Theactualresultsmayvary,andmaycauseadjustmentstotheGroup’sassets.

In most cases, determining the applicable discount rate involves estimating the appropriateadjustmenttomarketriskandtheappropriateadjustmenttoasset-specificriskfactors.

ThecarryingamountofentrancefeesasatthereportingdateisdisclosedinNote5tothefinancialstatements.

A1%differenceintheentrancefeesfromthemanagement’sestimateswouldresultinaninsignificantimpact.


054



2.6.1 estimationuncertainty(Cont’d)

DeferredTaxAssets

Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,unutilisedtaxlosses,unabsorbedcapitalallowancesandunusedtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichallthedeductibletemporarydifferences,unutilisedtaxlossesandunabsorbedcapitalallowancescanbeutilised.Significantmanagementjudgementisrequiredtodeterminetheamountofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.

Assumptionsaboutgenerationoffuturetaxableprofitsdependonmanagement’sestimatesoffuturecashflows.Thesedependonestimatesoffutureproductionandsalesvolume,operatingcosts,capitalexpenditure, dividends and other capital management transactions. Judgement is also requiredaboutapplicationofincometaxlegislation.Thesejudgementsandassumptionsaresubjecttorisksanduncertainties,hencethereisapossibilitythatchangesincircumstanceswillalterexpectations,whichmayimpacttheamountofdeferredtaxassetsrecognisedinthestatementsoffinancialpositionandtheamountofunrecognisedtaxlossesandunrecognisedtemporarydifferences.

ThecarryingamountofdeferredtaxassetsasatthereportingdateisdisclosedinNote7(a)tothefinancialstatements.

A 1% difference in the deferred tax assets from the management’s estimates would result in aninsignificantimpact.

Inventories

Inventoriesaremeasuredatthelowerofcostandnetrealisablevalue.Inestimatingnetrealisablevalues,managementtakesintoaccountthemostreliableevidenceavailableatthetimetheestimatesaremade.Therealisationoftheseinventoriesmaybeaffectedbymarket-drivenchangesthatmayoccurinthefuture.

The carrying amount of inventories at the end of the reporting date is disclosed in Note 8 to thefinancialstatements.

A1%differenceintheinventoriesfromthemanagement’sestimateswouldresultinaninsignificantimpact.


055




2.6.2 significantManagementJudgement

The following are significant management judgements in applying the accounting policies of theGroupthathavethemostsignificanteffectonthefinancialstatements.

DeferredTaxAssets

TheassessmentoftheprobabilityoffuturetaxableincomeinwhichdeferredtaxassetscanbeutilisedisbasedontheGroup’slatestapprovedbudgetforecast,whichisadjustedforsignificantnon-taxableincomeandexpensesandspecificlimitstotheuseofanyunutilisedtaxlosses.Thetaxrulesinthenumerous jurisdictions inwhich theGroupoperatesarealsocarefully taken intoconsideration. Ifapositiveforecastoftaxableincomeindicatestheprobableuseofadeferredtaxasset,especiallywhenitcanbeutilisedwithoutatimelimit,thatdeferredtaxassetisusuallyrecognisedinfull.Therecognitionofdeferredtaxassetsthataresubjecttocertainlegaloreconomiclimitsoruncertaintiesisassessedindividuallybymanagementbasedonthespecificfactsandcircumstances.

3. SIgNIFICANT ACCOUNTINg POLICIES TheGroupandtheCompanyapplythesignificantaccountingpolicies,assummarisedbelow,consistentlythroughoutallperiodspresentedinthefinancialstatements,unlessotherwisestated.

3.1 Consolidation

3.1.1 basisofConsolidation

TheGroupfinancialstatementsconsolidate theauditedfinancialstatementsof theCompanyandallofitssubsidiaries,whichhavebeenpreparedinaccordancewiththeGroup’saccountingpolicies.AmountsreportedinthefinancialstatementsofsubsidiarieshavebeenadjustedwherenecessarytoensureconsistencywiththeaccountingpoliciesadoptedbytheGroup.ThefinancialstatementsoftheCompanyanditssubsidiariesarealldrawnuptothesamereportingdate.

Allintra-groupbalances,incomeandexpensesandunrealisedgainsandlossesresultingfromintra-grouptransactionsareeliminatedinfull.

SubsidiariesareconsolidatedfromthedateonwhichcontrolistransferredtotheGroupandarenolongerconsolidatedfromthedatethatcontrolceases.

ChangesintheCompanyowners’ownershipinterestinasubsidiarythatdonotresult inalossofcontrolareaccountedforasequitytransactions.Insuchcircumstances,thecarryingamountsofthecontrollingandnon-controllinginterestsareadjustedtoreflectthechangesintheirrelativeinterestsin the subsidiaries. Any difference between the amount by which the non-controlling interest isadjustedandthefairvalueoftheconsiderationpaidorreceivedisrecogniseddirectlyinequityandattributabletoownersoftheCompany.


056


3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.1 Consolidation(Cont’d)

3.1.2 businessCombinationandGoodwill

Businesscombinationsareaccountedforusingtheacquisitionmethod.Thecostofanacquisitionismeasuredastheaggregateoftheconsiderationtransferred,measuredatacquisitiondatefairvalueandtheamountofanynon-controllinginterestintheacquiree.Foreachbusinesscombination,theGroupelectswhetheritmeasuresthenon-controllinginterestintheacquireeeitheratfairvalueorat theproportionateshareof theacquiree’s identifiablenetassets.Acquisitioncosts incurredareexpensesandincludedinotheroperatingexpenses.

When the Group acquires a business, it assesses the financial assets and liabilities assumed forappropriate classification and designation in accordance with the contractual terms, economiccircumstancesandpertinentconditionsasat theacquisitiondate.This includestheseparationofembeddedderivativesinhostcontractsbytheacquiree.

If thebusinesscombination isachieved instages, theacquisitiondate fair valueof theacquirer’spreviously held equity interest in the acquiree is remeasured to fair value at the acquisition datethroughprofitorloss.

Any contingent consideration to be transferred by the acquirer will be recognised at fair value attheacquisitiondate.SubsequentchangesinthefairvalueofthecontingentconsiderationwhichisdeemedtobeanassetorliabilitywillberecognisedinaccordancewithMFRS139eitherinprofitorlossorasachangetoothercomprehensiveincome.Ifthecontingentconsiderationisclassifiedasequity,itwillnotberemeasured.Subsequentsettlementisaccountedforwithinequity.Ininstanceswhere thecontingentconsiderationdoesnot fallwithin thescopeofMFRS139, it ismeasured inaccordancewiththeappropriateMFRS.

Goodwill is initially measured at cost, being the excess of the aggregate of the considerationtransferredandtheamountrecognisedfornon-controllinginterestoverthenetidentifiableassetsacquiredandliabilitiesassumed.Ifthisconsiderationislowerthanthefairvalueofthenetassetsofthesubsidiaryacquired,thedifferenceisrecognisedinprofitorloss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses.For the purpose of impairment testing, goodwill acquired in a business combination is, from theacquisitiondate,allocatedtoeachoftheGroup’scash-generatingunitsthatareexpectedtobenefitfromthecombination,irrespectiveofwhetherotherassetsorliabilitiesoftheacquireeareassignedtothoseunits.

Wheregoodwill formspartofacash-generatingunitandpartof theoperationwithin thatunit isdisposedof,thegoodwillassociatedwiththeoperationdisposedofisincludedinthecarryingamountoftheoperationwhendeterminingthegainorlossondisposaloftheoperation.Goodwilldisposedofinthiscircumstanceismeasuredbasedontherelativevaluesoftheoperationdisposedofandtheportionofthecash-generatingunitretained.


057



3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.1 Consolidation(Cont’d)

3.1.3 subsidiaries

Subsidiaries are entities, including structured entities, controlled by the Company. Control existswhentheGroupisexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeentityandhastheabilitytoaffectthosereturnsthroughitspowerovertheentity.Potentialvotingrightsareconsideredwhenassessingcontrolonlywhensuchrightsaresubstantive.

Besides, the Group considers it has de facto power over an investee when, despite not havingthe majority of voting rights, it has the current ability to direct the activities of the investee thatsignificantlyaffecttheinvestee’sreturn.

Investment insubsidiary isstatedatcostlessanyimpairmentlossesintheCompany’sstatementoffinancialposition,unlesstheinvestmentisheldforsaleordistribution.Thecostofinvestmentsincludes transaction costs. Where an indication of impairment exists, the carrying amount of thesubsidiaryisassessedandwrittendownimmediatelytoitsrecoverableamount.

Uponthedisposalofinvestmentinasubsidiary,thedifferencebetweenthenetdisposalproceedsanditscarryingamountisincludedinprofitorloss.

3.1.4 LossofControl

Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities of thesubsidiary,anynon-controllinginterestsandtheothercomponentsofequityrelatedtothesubsidiary.Anysurplusordeficitarisingonthelossofcontrolisrecognisedinprofitorloss.

If theGroupretainsany interest intheprevioussubsidiary, thensuch interest ismeasuredat fairvalueatthedatethatcontrolislost.Subsequently,itisaccountedforasanequityaccountedinvesteeorasanavailable-for-salefinancialassetdependingonthelevelofinfluenceretained.

3.1.5 Non-controllinginterest

Non-controllinginterestrepresenttheequityinsubsidiarynotattributable,directlyorindirectly,toownersoftheCompany.Itispresentedseparatelyinthestatementsoffinancialposition,separatefromequityattributabletoownersoftheCompany.

Lossesapplicable tonon-controlling interests inasubsidiaryareallocated to thenon-controllinginteresteventhoughitmayresultindeficittonon-controllinginterest.


058


3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.2 Property,Plantandequipment

All property, plant and equipment are measured at cost less accumulated depreciation and less anyimpairmentlosses.Thecostofanitemofproperty,plantandequipmentisrecognisedasanassetif,andonlyif,itisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheGroupandthecostoftheitemcanbemeasuredreliably.

Costincludesexpendituresthataredirectlyattributabletotheacquisitionoftheassetsandanyothercostsdirectlyattributabletobringtheassettoworkingconditionforitsintendeduse,costofreplacingcomponentpartsoftheassets,andthepresentvalueoftheexpectedcostforthedecommissioningoftheassetsaftertheiruse.Allotherrepairandmaintenancecostsarerecognisedinprofitorlossasincurred.

Depreciationisrecognisedonthestraightlinemethodinordertowriteoffthecostofeachassetoveritsestimatedusefullife.Freeholdlandisnotdepreciated.Otherproperty,plantandequipmentaredepreciatedbasedontheestimatedusefullivesoftheassetsasfollows:-

Long-termleaseholdland Overthetenureofleaserangingfrom60to99yearsBuildings 2%-3%Plantandmachinery 10%Electricalinstallations 10%Furnitureandfittings 20%Officeequipment 20%Computersandsoftware 20%Motorvehicles 12.5%Renovations 15%

Theresidualvalues,usefullifeanddepreciationmethodarereviewedforimpairmentwheneventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecoverableoratleastannuallytoensurethattheamount,methodandperiodofdepreciationareconsistentwithpreviousestimatesandexpectedtrendofconsumptionoffutureeconomicbenefitsembodiedintheitemsofproperty,plantandequipment.

Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuseordisposal.Gainorlossarisingonthedisposalofproperty,plantandequipmentaredeterminedasthedifferencebetweenthedisposalproceedsandthecarryingamountoftheassetsandarerecognisedinprofitorloss.

3.3 intangibleassets

Forthepurposeofimpairmenttestingofintangibleassets,therecoverableamountisdeterminedforthecash-generatingunit(CGU)towhichtheassetbelongsto.Anasset’srecoverableamountisthehigherofanasset’sorCGU’sfairvaluelesscoststosellanditsvalue-in-use.Inassessingvalue-in-use,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsof thetimevalueofmoneyandtherisksspecifictotheasset.Thefairvalue is thehigheroftheCGU’searningsbasedvaluationandnetassetvalue.


059



3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.3 intangibleassets(Cont’d)

Wherethecarryingamountofanintangibleassetexceedsitsrecoverableamount,theassetisconsideredimpairedandiswrittendowntoitsrecoverableamount.Animpairmentlossongoodwillisnotreversed.

3.3.1 Goodwill

Goodwillacquired inabusinesscombination is initiallymeasuredat costbeing theexcessof thecostofbusinesscombinationovertheGroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilities.Followingtheinitialrecognition,goodwillismeasuredatcostlessimpairmentlosses.Gainandlossonthedisposalofanentityincludethecarryingamountofgoodwillrelatingtotheentitysold.

3.3.2 entrancefees

Theserepresententrancefeespaidforrightstosetupboutiquestomarketaninternationalbrandof fashiongarmentsandaccessories.Theseentrance feeshavean indefiniteuseful lifebasedonthe contractual terms with the Principal of the said brand. Entrance fees are stated at cost lessimpairmentlosses.

Subsequentincreaseintherecoverableamountofanintangibleassetotherthangoodwillistreatedasreversalofthepreviousimpairmentlossandisrecognisedtotheextentofthecarryingamountoftheassetthatwouldhavebeendeterminedhadnoimpairmentlossbeenrecognised.Thereversalisrecognisedintheprofitorlossimmediately.

3.4 financialinstruments

InitialRecognitionandMeasurement

FinancialassetsandfinancialliabilitiesarerecognisedwhentheGroupandtheCompanybecomeapartytothecontractualprovisionsofthefinancialinstruments.

Financialassetsandfinancialliabilitiesaremeasuredinitiallyatfairvalueplustransactionscosts,exceptforfinancialassetsandfinancialliabilitiescarriedatfairvaluethroughprofitorloss,whicharemeasuredinitiallyatfairvalue.Financialassetsandfinancialliabilitiesaremeasuredsubsequentlyasdescribedbelow.

3.4.1 financialassets

For the purpose of subsequent measurement, financial assets other than those designated andeffectiveashedginginstrumentsareclassifiedintothefollowingcategoriesuponinitialrecognition:-(a) loansandreceivables;(b) financialassetsatfairvaluethroughprofitorloss;(c) held-to-maturityinvestments;and(d) available-for-salefinancialassets.


060


3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.4 financialinstruments(Cont’d)

3.4.1 financialassets(Cont’d)

Thecategorydeterminessubsequentmeasurementandwhetheranyresultingincomeandexpensesisrecognisedinprofitorlossorinothercomprehensiveincome.

All financial assets except for those at fair value through profit or loss are subject to review forimpairmentatleastatendofeachreportingperiod.Financialassetsareimpairedwhenthereisanyobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.Differentcriteriatodetermineimpairmentareappliedforeachcategoryoffinancialassets.

Afinancialassetorpartofitisderecognisedwhen,andonlywhen,thecontractualrightstothecashflowsfromthefinancialassetexpireorthefinancialasset istransferredtoanotherpartywithoutretainingcontrolorsubstantiallyallrisksandrewardsoftheasset.Onderecognitionofafinancialasset, the difference between the carrying amount and the sum of the consideration received(includinganynewassetobtainedlessanynewliabilityassumed)andanycumulativegainorlossthathadbeenrecognisedinequityisrecognisedintheprofitorloss.

Atthereportingdate,theGroupandtheCompanyhavenotdesignatedanyfinancialassetsatfairvalue through profit or loss, held-to-maturity investments and available-for-sale financial assets.TheGroupandtheCompanycarryonlyloansandreceivablesontheirstatementsoffinancialposition.

LoansandReceivablesLoansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Afterinitialrecognitions,thesearemeasuredatamortisedcostusingtheeffectiveinterestmethod,lessprovisionforimpairment.Discountingisomittedwheretheeffectofdiscountingisimmaterial.Gainsorlossesarerecognisedinprofitorlosswhentheloansandreceivablesarederecognisedorimpaired,andthroughtheamortisationprocess.TheGroup’sandtheCompany’scashandcashequivalents,tradeandotherreceivables(excludeprepayments)fall intothiscategoryoffinancialinstruments.

Loansandreceivablesareclassifiedascurrentassets,exceptforthosehavingmaturitydateslaterthan12monthsafterthereportingdatewhichareclassifiedasnon-currentassets.

3.4.2 financialLiabilities

Aftertheinitialrecognition,financialliabilityisclassifiedas:-

(a) financialliabilityatfairvaluethroughprofitorloss;(b) otherfinancialliabilitiesmeasureatamortisedcostusingtheeffectiveinterestmethod;and(c) financialguaranteecontracts.


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3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.4 financialinstruments(Cont’d)

3.4.2 financialLiabilities(Cont’d)

Afinancialliabilityorapartofitisderecognisedwhen,andonlywhen,theobligationspecifiedinthecontractisdischargedorcancelledorexpires.Onderecognitionofafinancialliability,thedifferencebetweenthecarryingamountofthefinancial liabilityextinguishedortransferredtoanotherpartyand the consideration paid, including any non-cash assets transferred or liabilities assumed, isrecognisedinprofitorloss.

At the reporting date, the Group and the Company have not designated any financial liabilities atfair value through profit or loss. The Group and the Company carry only other financial liabilitiesmeasuredatamortisedcostontheirstatementsoffinancialposition.

OtherFinancialLiabilitiesMeasuredatAmortisedCostTheGroup’sandtheCompany’sotherfinancial liabilities includebankborrowings,amountduetosubsidiaries,tradeandotherpayables.

Otherfinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod. Bank borrowings are classified as current liabilities unless the Group has right to defersettlementoftheliabilityforatleast12monthsaftertheendofthereportingperiod.

FinancialGuaranteeContractsFinancialguaranteecontractsareissuedbytheCompanyforcollateralandsecuritydeposits.Financialguaranteecontractsarerecognisedinitiallyasaliabilityatfairvalue,adjustedfortransactioncoststhataredirectlyattributabletotheissuanceoftheguarantee.Subsequently,theliabilityismeasuredatthehigherofthebestestimateoftheexpenditurerequiredtosettlethepresentobligationatthereportingdateandtheamountrecognisedlesscumulativeamortisation.

3.4.3 offsettingoffinancialinstruments

Financialassetsandfinancialliabilitiesareoffsetandthenetamountreportedinthestatementsoffinancialpositionif,andonlyif,thereisacurrentlyenforceablelegalrighttooffsettherecognisedamountsand there isan intention tosettleonanetbasis,or torealise theassetsandsettle theliabilitiessimultaneously.


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3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.5 impairmentofassets

3.5.1 financialassets

TheGroupandtheCompanyassessateachreportingdatewhetherthereisanyobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.Afinancialassetoragroupoffinancialassetsisdeemedtobeimpairedif,andonlyif,thereisobjectiveevidenceofimpairmentasaresultofoneormoreeventsthathasoccurredaftertheinitialrecognitionoftheasset(anincurred“lossevent”)andthatlosseventhasanimpactontheestimatedfuturecashflowsofthefinancialassetorthegroupoffinancialassetsthatcanbereliablyestimated.Evidenceofimpairmentmayincludeindicationsthatthedebtorsoragroupofdebtorsisexperiencingsignificantfinancialdifficulty,defaultor delinquency in interest or principal payments, the probability that they will enter bankruptcyor other financial reorganisation and where observable date indicate that there is a measurabledecreaseintheestimatedfuturecashflows,suchaschangesinarrearsoreconomicconditionsthatcorrelatewithdefaults.

FinancialAssetsCarriedAtAmortisedCostForfinancialassetscarriedatamortisedcost,theGroupfirstassesseswhetherobjectiveevidenceofimpairmentexistsindividuallyforfinancialassetsthatareindividuallysignificant,orcollectivelyfor financial assets that are not individually significant. If the Group determines that no objectiveevidence of impairment exists for an individually assessed financial asset, whether significantor not, it includes the asset in a Group of financial assets with similar credit risk characteristicsandcollectivelyassessesthemfor impairment.Financialassetsthatare individuallyassessedforimpairmentandforwhichanimpairmentlossis,orcontinuetobe,recognisedarenotincludedinacollectiveassessmentofimpairment.

Ifthereisobjectiveevidencethatanimpairmentlosshasbeenincurred,theamountofthelossismeasuredasthedifferencebetweentheassetscarryingamountandthepresentvalueofestimatedfuture cash flows (excluding future expected credit losses that have not yet been incurred). Thepresentvalueoftheestimatedfuturecashflowsisdiscountedatthefinancialasset’soriginaleffectiveinterestrate.

Thecarryingamountoftheassetisreducedthroughtheuseofaprovisionaccountandtheamountofthelossisrecognisedintheprofitorloss.Interestincomecontinuestobeaccruedonthereducedcarryingamountandisaccruedusingtherateofinterestusedtodiscountthefuturecashflowsforthepurposeofmeasuringtheimpairmentloss.Theinterestincomeisrecordedaspartoffinanceincomeintheprofitorloss.LoanstogetherwiththeassociatedprovisionarewrittenoffwhenthereisnorealisticprospectoffuturerecoveryandallcollateralhasbeenrealisedorhasbeentransferredtotheGroup.If,inasubsequentfinancialyear,theamountoftheestimatedimpairmentlossincreasesordecreasesduetoaneventoccurringaftertheimpairmentwasrecognised,thepreviouslyrecognisedimpairmentlossisincreasedorreducedbyadjustingtheprovisionaccount.


063



3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.5 impairmentofassets(Cont’d)

3.5.2 Non-financialassets

Ateachreportingdate,theGroupreviewscarryingamountsofitsnon-financialassetstodeterminewhether there is any indication of impairment. Non-financial assets are tested for impairment atleastonceannuallyormorefrequentlyifeventsorchangesareincircumstancesindicatethatthecarryingamountsmaybeimpairedeitherindividuallyoratthecash-generatingunitlevel.Ifanysuchindicationexists,orwhenannualimpairmenttestingforanassetisrequired,therecoverableamountisestimatedandanimpairmentlossisrecognisedwhenevertherecoverableamountoftheassetoracash-generatingunitislessthanitscarryingamount.Recoverableamountofanassetoracash-generatingunitisthehigherofitsfairvaluelesscoststosellanditsvalue-in-use.

Inassessingvalue-in-use,estimatedfuturecashflowsarediscountedtopresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Impairmentlossesofcontinuingoperationsarerecognisedinprofitorlossinthose expense categories consistent with the function of the impaired asset. An impairment lossisrecognisedasanexpenseinprofitorlossimmediately,unlesstheassetiscarriedatarevaluedamount.Anyimpairmentlossofarevaluedassetistreatedasarevaluationdecreasetotheextentofpreviouslyrecognisedrevaluationsurplusforthesameasset.

Anassessmentismadeateachreportingdateastowhetherthereisanyindicationthatpreviouslyrecognised impairment losses for an asset may no longer exist or may have decreased. If suchindicationexists,therecoverableamountisestimated.Apreviouslyrecognisedimpairmentlossisreversedonlyiftherehasbeenachangeintheestimatesusedtodeterminetheassetrecoverableamount.Thatincreasedamountcannotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciation,hadnoimpairmentlossbeenrecognisedfortheassetinprioryears.

All reversalsof impairment lossesare recognisedas income immediately inprofitor lossunlessthe asset is carried at revalued amount, in which case the reversal in excess of impairment losspreviouslyrecognisedthroughprofitorlossistreatedasrevaluationincrease.Aftersuchareversal,depreciationchargeisadjustedinfutureperiodstoallocatetherevisedcarryingamountoftheasset,lessanyresidualvalue,onasystematicbasisoveritsremainingusefullife.

3.6 inventories

Inventoriesarestatedatthelowerofcostandnetrealisablevalue,afteradequateallowancehasbeenmadefordeterioration,damageandobsolescence.Costisdeterminedontheweightedaverageorfirst-in,first-outbasis.

Thecostoffinishedgoodsandwork-in-progresswhererelevant includesdirectmaterials,direct labour,directchargesandappropriatevariableproductionoverheads.

Net realisable value represents the estimated selling price in the ordinary course of business less theestimatedcostsnecessarytomakesale.


064


3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.7 Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of thearrangementat the inceptiondate,whether fulfilmentof thearrangement isdependenton theuseofaspecificassetorassetorthearrangementconveysarighttousetheasset,evenifthatrightisnotexplicitlyspecificinanarrangement.

3.7.1 operatinglease

Leases,wheretheGroupdoesnotassumesubstantiallyalltherisksandrewardsofownershipareclassifiedasoperatingleasesand,exceptforpropertyinterestheldunderoperatinglease,theleasedassetsarenotrecognised in thestatementsoffinancialposition.Property interestheldunderanoperatinglease,whichisheldtoearnrentalincomeorforcapitalappreciationorboth,isclassifiedasinvestmentproperty.

Paymentsmadeunderoperatingleasesarerecognisedinprofitorlossonastraight-linebasisoverthetenureofthelease.Leaseincentivesreceivedarerecognisedinprofitorlossasanintegralpartofthetotalleaseexpense,overthetenureofthelease.Contingentrentalsarechargedtoprofitorlossinthereportingperiodinwhichtheyareincurred.

3.8 CashandCashequivalents

Cashandcashequivalentscomprisecashonhandandbankbalanceswhicharereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.

Bankoverdraftsareshownincurrentliabilitiesunderbankborrowingsinthestatementsoffinancialposition.

3.9 equity,Reservesanddistributiontoowners

AnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheCompanyafterdeductingallofitsliabilities.Ordinarysharesareequityinstruments.

Sharecapitalrepresentsthenominalvalueofsharesthathavebeenissued.

ForeigncurrencytranslationdifferencearisingonthetranslationoftheGroup’sforeignentitiesisincludedintheforeignexchangetranslationreserve.

Retainedearningsincludeallcurrentandpriorperiodsretainedearnings.

FinaldividendsproposedbytheDirectorsarenotaccountedforinshareholders’equityasanappropriationofretainedearnings,untiltheyhavebeenapprovedbytheshareholdersinthegeneralmeeting.Whenthesedividendshavebeenapprovedbytheshareholdersanddeclared,theyarerecognisedasaliability.

Interimdividendsaresimultaneouslyproposedanddeclared,asthearticlesofassociationoftheCompanygrants the Directors the authority to declare interim dividends. Consequently, interim dividends arerecogniseddirectlyasaliabilitywhentheyareproposedanddeclared.


065



3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.9 equity,Reservesanddistributiontoowners(Cont’d)

The distribution of non-cash assets to owners is recognised as dividend payable when the dividend wasapprovedbyshareholders.Thedividendpayableismeasuredatthefairvalueofthesharestobedistributed.Attheendofthefinancialperiodandonthesettlementdate,theCompanyreviewsthecarryingamountofthedividendpayablerecognisedinequity.WhentheCompanysettlesthedividendpayable,thedifferencebetweenthecarryingamountofthedividenddistributedandthecarryingamountofthedividendpayablesisrecognisedasaseparatelineiteminprofitorloss.

AlltransactionswithownersoftheCompanyarerecordedseparatelywithequity.

3.10 RevenueRecognition

Revenue is recognised to the extent that it is probable that the economic benefits associated with thetransactionwillflowtotheGroupandtheCompanyandtheamountofrevenuecanbereliablymeasured.

3.10.1 saleofGoods

Revenuerelatingtosaleofgoodsisrecognisednetofsalesreturnsanddiscountsuponthetransferof risks and rewards of ownership of the goods to the customers. Revenue is not recognised tothe extent where there are significant uncertainties regarding recovery of the consideration due,associatedcostsorthepossiblereturnofgoods.

3.10.2 interestincome

Interestincomeisrecognisedintheprofitorlossontimeproportionbasistakingintoaccounttheprincipaloutstandingandtheeffectiveinterestrateovertheperiodtomaturity,whenitisdeterminedthatsuchincomewillaccruetotheGroup.

3.10.3 dividendincome

Dividend income is recognised when the right to receive payment has been established and nosignificantuncertaintyexistedwithregardtoitsreceipt.

3.11 foreignCurrencyTranslationandbalances

TheGroup’sfinancialstatementsarepresentedinRM,whichisalsotheCompany’sfunctionalcurrency.

3.11.1 foreigncurrencytransaction

Transactionsinforeigncurrenciesareinitiallyrecordedatthefunctionalcurrencyratesprevailingatthedateofthetransaction.

Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesareretranslatedatthefunctionalcurrencyspotrateofexchangerulingatthereportingdate.

Alldifferencesaretakentotheprofitorlosswiththeexceptionofallmonetaryitemsthatformspartofanetinvestmentinaforeignoperation.Thesearerecognisedinothercomprehensiveincomeuntilthedisposalofthenetinvestment,atwhichtimetheyarereclassifiedtoprofitorloss.Taxchargesandcreditsattributabletoexchangedifferencesonthosemonetaryitemsarealsorecordedinothercomprehensiveincome.


066


3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.11 foreignCurrencyTranslationandbalances(Cont’d)

3.11.1 foreigncurrencytransaction(Cont’d)

Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyaretranslatedusingtheexchangeratesasatthedatesoftheinitialtransactions.Non-monetaryitemsmeasuredatfairvalueinaforeigncurrencyaretranslatedusingtheexchangeratesatthedatewhenthefairvalueisdetermined.Thegainor lossarising in translationofnon-monetary items isrecognised in linewiththegainorlossoftheitemthatgaverisetothetranslationdifference(translationdifferencesonitemswhosegainorlossisrecognisedinothercomprehensiveincomeorprofitorlossisalsorecognisedinothercomprehensiveincomeorprofitorlossrespectively).

3.11.2 operationsdenominatedinfunctionalcurrenciesotherthanRinggitMalaysia

Assetsandliabilitiesofforeignsubsidiary,includinggoodwillandfairvalueadjustmentsarisinginanacquisition,aretranslatedatfinancialperiodendexchangerates.TheincomeandexpensesofforeignsubsidiariesaretranslatedtoRMataverageratesduringthefinancialperiod.

Foreigncurrencydifferencesarerecognisedinothercomprehensiveincomeandaccumulatedintheforeignexchangetranslationreserve,excepttotheextentthatthetranslationdifferenceisallocatedtonon-controllinginterest.

Whenaforeignsubsidiaryisdisposedinitsentirelyorpartiallysuchthatcontrol,significantinfluenceor joint control is lost, the cumulative amount in the translation reserve related to that foreignoperationisreclassifiedtoprofitorlossaspartofthegainorlossondisposal.IftheGroupdisposedpart of its interest but retains control, then the relevant proportion of the cumulative amount isreattributedtonon-controllinginterest.WhentheGroupdisposesonlypartofanassociatecompanyor jointventurewhileretainingsignificant influenceor jointcontrol, therelevantproportionofthecumulativeamountisreclassifiedtoprofitorloss.

Ifthesettlementofamonetaryitemreceivablefromorpayabletoaforeignsubsidiaryisneitherplanned nor likely to occur in the foreseeable future, then foreign currency differences arisingfromsuchitemwillformpartofthenetinvestmentintheforeignsubsidiary.Differencesofsuchnaturearerecognised inothercomprehensive incomeandaccumulated in the foreignexchangetranslationreserve.

3.12 Taxexpense

Taxexpensecomprisescurrentanddeferredtax.Currenttaxanddeferredtaxarerecognisedinprofitorlossexcepttotheextentthatitrelatestoabusinesscombinationoritemsrecogniseddirectlyinequityorothercomprehensiveincome.


067



3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.12 Taxexpense(Cont’d)

3.12.1 Currenttax

Currenttax istheexpectedtaxpayableorreceivableonthetaxableprofitorlossforthefinancialperiod,usingtaxratesenactedorsubstantivelyenactedbytheendofthereportingperiod,andanyadjustmenttotaxpayableinrespectofpreviousfinancialyears.

Currenttaxisrecognisedinthestatementsoffinancialpositionasaliability(oranasset)totheextentthatitisunpaid(orrefundable).

3.12.2 deferredtax

Deferredtaxisrecognisedusingtheliabilitymethod,providingfortemporarydifferencesbetweenthecarryingamountsofassetsand liabilities in thestatementsoffinancialpositionand their taxbases.Deferredtaxisnotrecognisedforthetemporarydifferencesarisingfromtheinitialrecognitionof goodwill, the initial recognition of assets and liabilities in a transaction that is not a businesscombinationandthataffectsneitheraccountingnortaxableprofitorloss.Deferredtaxismeasuredatthetaxratesthatareexpectedtobeappliedtothetemporarydifferenceswhentheyreverse,basedonthelawsthathavebeenenactedorsubstantivelyenactedbytheendofthereportingperiod.

Theamountofdeferredtaxrecognisedismeasuredbasedontheexpectedmannerofrealisationorsettlementofthecarryingamountoftheassetsandliabilities,usingtaxratesenactedorsubstantivelyenactedatthereportingdate.

Deferredtaxassetsandliabilitiesareoffsetifthereisalegallyenforceablerighttooffsetcurrenttaxliabilitiesandassets,andtheyrelatetoincometaxesleviedbythesametaxauthorityonthesametaxableentity,orondifferenttaxentities,buttheyintendtosettlecurrenttaxliabilitiesandassetsonanetbasisortheirtaxassetsandliabilitieswillberealisedsimultaneously.

Adeferredtaxassetisrecognisedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthetemporarydifferencecanbeutilised.Deferredtaxassetsarereviewedattheendofeachreportingperiodandarereducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefitwillberealised.

Unutilisedreinvestmentallowanceandinvestmenttaxallowance,beingtaxincentivesthatisnotataxbaseofanasset,isrecognisedasadeferredtaxassettotheextentthatitisprobablethatthefuturetaxableprofitswillbeavailableagainsttheunutilisedtaxincentivecanbeutilised.

3.13 GoodsandservicesTax

GoodsandServicesTax (“GST”) isaconsumption taxbasedonvalue-addedconcept.GST is imposedongoods and services at every production and distribution stage in the supply chain including importationofgoodsandservices,attheapplicabletaxrateof6%.InputGSTthattheCompanypaidonpurchasesofbusinessinputscanbedeductedfromoutputGST.


068


3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.13 GoodsandservicesTax(Cont’d)

Revenues,expensesandassetsarerecognisednetoftheamountofGSTexcept:-

(a) WheretheGSTincurredinapurchaseofassetsorservicesisnotrecoverablefromtheauthority,inwhichcasetheGSTisrecognisedaspartofthecostofacquisitionoftheassetsoraspartoftheexpenseitemasapplicable;and

(b) ReceivablesandpayablesthatarestatedwiththeamountofGSTincluded.

ThenetamountofGSTrecoverablefrom,orpayableto,thetaxationauthorityisincludedaspartofreceivablesorpayablesinthestatementsoffinancialposition.

3.14 employeebenefits

3.14.1 shortTermbenefits

Wages, salaries, bonuses and social security contributions are recognised as an expense in theperiodinwhichtheassociatedservicesarerenderedbyemployeesoftheGroupandoftheCompany.Short termaccumulatingcompensatedabsencessuchaspaidannual leavearerecognisedwhenservicesarerenderedbyemployeesthatincreasetheirentitlementtofuturecompensatedabsences,andshorttermnon-accumulatingcompensatedabsencessuchassickleavearerecognisedwhentheabsencesoccur.

Aprovisionismadefortheestimatedliabilityforleaveasaresultofservicesrenderedbyemployeesuptotheendofthereportingperiod.

3.14.2 definedContributionPlan

Defined contribution plans are post-employment benefit plans under which the Group and theCompanypayfixedcontributionsintoseparateentitiesoffundsandwillhavenolegalorconstructiveobligation to pay further contribution if any of the funds do not hold sufficient assets to pay allemployeebenefitsrelatingtoemployeeservicesinthecurrentandprecedingfinancialyears.

Suchcontributionsarerecognisedasanexpenseintheprofitorlossasincurred.Asrequiredbylaw,companiesinMalaysiamakesuchcontributionstotheEmployeesProvidentFund(“EPF”).

3.15 earningsPerordinaryshare

TheGrouppresentsbasicanddilutedEarningsPerShare(EPS)dataforitsordinaryshares.

BasicEPSiscalculatedbydividingtheprofitorlossattributabletoordinaryshareholdersoftheGroupbasedontheweightedaveragenumberofordinarysharesoutstandingduringthefinancialperiod.

DilutedEPSiscalculatedbydividingtheprofitor lossattributabletoordinaryshareholdersoftheGroupbasedontheweightedaveragenumberofsharesoutstanding,fortheeffectsofalldilutivepotentialordinarysharesduringthefinancialperiod.


069



3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.16 operatingsegments

OperatingsegmentsarereportedinamannerconsistentwithinternalreportingprovidedtotheExecutiveDirectors, who are responsible for allocating resources and assessing performance of the operatingsegments,hasbeenidentifiedtomakestrategicdecisions.AdditionaldisclosuresoneachofthesesegmentsareshowninNote21tothefinancialstatements.

Segment revenues, expenses and results include transfer between segments. The price charged onintersegmenttransactionsarethesameasthosechargedforsimilargoodstopartiesoutsideoftheGroupinanegotiatedbasis.Thesetransfersareeliminatedonconsolidation.

3.17 Contingencies

Whereitisnotprobablethataninfloworanoutflowofeconomicbenefitswillberequired,ortheamountcannotbeestimatedreliably, theassetor theobligation isnot recognised in thestatementsoffinancialposition and is disclosed as a contingent asset or contingent liability, unless the probability of inflow oroutflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed bytheoccurrenceornon-occurrenceofoneormorefutureevents,arealsodisclosedascontingentassetsorcontingentliabilitiesunlesstheprobabilityofinfloworoutflowofeconomicbenefitsisremote.

3.18 borrowingsCosts

Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetarecapitalisedaspartof thecostof theassetsduring theperiodof time that isnecessary tocompleteandpreparetheassetforitsintendeduseorsale.

Thecapitalisationofborrowingcostsaspartofthecostofaqualifyingassetcommenceswhenexpenditurefor the asset is being incurred, borrowing costs are being incurred and activities that are necessary topreparetheassetforitsintendeduseorsaleareinprogress.Capitalisationofborrowingcostsissuspendedorceaseswhensubstantiallyalltheactivitiesnecessarytopreparethequalifyingassetforitsintendeduseorsaleareinterruptedorcompleted.

Allotherborrowingcostsareexpensedintheperiodinwhichtheyareincurred.BorrowingcostsconsistofinterestandothercoststhattheGroupincurredinconnectionwiththeborrowingoffunds.

3.19 RelatedParties

ArelatedpartyisapersonorentitythatisrelatedtotheGroupandtheCompany.Arelatedpartytransactionisatransferofresources,servicesorobligationsbetweentheGroupandtheCompanyanditsrelatedparty,regardlessofwhetherapriceischarged.


070


3. SIgNIFICANT ACCOUNTINg POLICIES (CONT’D)3.19 RelatedParties(Cont’d)

(a) ApersonoraclosememberofthatpersonfamilyisrelatedtotheGroupandtheCompanyifthatperson:-

(i) hascontrolorjointcontrolovertheGroupandtheCompany;

(ii) hassignificantinfluenceovertheGroupandtheCompany;or

(iii) isamemberofthekeymanagementpersonneloftheultimateholdingcompanyortheGrouportheCompany.

(b) AnentityisrelatedtotheGroupandtheCompanyifanyofthefollowingconditionapplies:-

(i) theentityandtheCompanyarethemembersofthesamegroup;

(ii) theentityisanassociatesorjointventureoftheGrouportheCompany;

(iii) boththeGrouportheCompanyandtheentityarejointventuresofthesamethirdparty;

(iv) theGrouportheCompanyisajointventureofathirdentityandtheentityisanassociateofthesamethirdentity;

(v) theentityisapost-employmentbenefitplanforthebenefitsofemployeesofeithertheGrouportheCompanyoranentityrelatedtotheGroupandtheCompany;

(vi) theentityiscontrolledorjointly-controlledbyapersonidentifiedin(a)above;

(vii) apersonidentifiedin(a)(i)abovehassignificantinfluenceovertheentityorisamemberofthekeymanagementpersonneloftheentityortheultimateholdingcompanyoftheentity;or

(viii) theentity,oranymemberofagroupofwhichitisapart,provideskeymanagementpersonnelservicestotheGrouportotheparentoftheGroup.


071



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518,

334

10,3

62,8

99

1,97

5,72

911

6,32

99,

512,

577

115,

870

814,

586

1,23

7,78

114

,300

,097

42

,905

,002


072


5. INTANgIBLE ASSETS entrance fees Goodwill Total

Group RM RM RM

atcost At1April2014 6,007,376 23,176,787 29,184,163

Additions 846,239 - 846,239

At31March2015/1April2015 6,853,615 23,176,787 30,030,402Additions 797,039 - 797,039

At30June2016 7,650,654 23,176,787 30,827,441

Theentrancefeesrepresentrightstosetupandoperateboutiquestomarketan internationalbrandof fashionapparelandaccessories.

Keyassumptionsusedinvalue-in-usecalculations

The recoverable amount for intangible assets was based on its value-in-use. Value-in-use was determined bydiscountingthefuturecashflowsgeneratedfromthecontinuingoperationsofbusinessacquiredandentrancefeesandwerebasedonthefollowingkeyassumptions:-

(a) cashflowsareprojectedbasedonactualoperatingresultsandafive-yearbusinessplan.(b) theprojectedgrowthrateis3%to5%.

Apre-taxdiscountrateof6.7%wasappliedindeterminingtherecoverableamount.

Thevalueassignedtothekeyassumptionsrepresentthemanagement’sassessmentoffuturetrendsintheindustryandarebasedonexternalandinternalconsideration.Areasonablypossiblechangeinakeyassumptiondoesnothaveanysignificantdifferencetotherecoverableamount.

6. INVESTMENT IN SUBSIDIARIES Company 30.6.2016 31.3.2015 RM RM

Unquotedshares:- Atcost 101,892,628 101,892,628


073



6. INVESTMENT IN SUBSIDIARIES (CONT’D)Theparticularsofsubsidiariesareasfollows:-

effectiveownership Principalplaceof interestand business/Country NameofCompany votinginterest Principalactivities ofincorporation 30.6.2016 31.3.2015 % %

JerasiaApparelSdn.Bhd. 100 100 Wholesellingretailingand Malaysia (156513–X) manufacturingoffashionapparel andaccessories JerasiaBrandsSdn.Bhd. 100 100 Wholesellingandretailingof Malaysia (156588–T) fashionapparelandaccessories JerasiaFashionSdn.Bhd. 100 100 Retailingoffashionapparel Malaysia (360850–V) andaccessories CanteranApparelSdn.Bhd. 100 100 Manufacturingandexportingof Malaysia (211117–M) garmentsandaccessories CanteranApparel 100 100 Manufacturingandexportingof Cambodia (Cambodia)Co.Ltd.* garmentsandaccessories (788/03E)

JerasiaHaulageSdn.Bhd. 100 100 Dormant Malaysia (409828–T) JerasiaInspirationSdn.Bhd. 100 100 Dormant Malaysia (6523–D)

* CompanynotauditedbySJGrantThornton


074


7. DEFERRED TAX (ASSETS)/ LIABILITIES assets Liabilities Net assets Liabilities Net 30.6.2016 30.6.2016 30.6.2016 31.3.2015 31.3.2015 31.3.2015

Group RM RM RM RM RM RM

Broughtforward (1,533,293) 783,718 (749,575) (581,705) 842,601 260,896(Over)/Under provisioninprior years(Note16) (3,553) 34,212 30,659 11,406 (38,160) (26,754)

(1,536,846) 817,930 (718,916) (570,299) 804,441 234,142

Recognisedin profitorloss (Note16) 265,919 307,455 573,374 (962,994) (20,723) (983,717)

Carriedforward (1,270,927) 1,125,385 (145,542) (1,533,293) 783,718 (749,575)

(a) Recogniseddeferredtax(assets)/liabilities

Thecomponentsofdeferredtax(assets)/liabilitiesaremadeupoftemporarydifferencesarisingfrom:-

Group 30.6.2016 31.3.2015 RM RM

Unutilisedtaxlosses (1,747,328) (1,648,588)Excessofproperty,plantandequipment’s carryingamountsovertheirtaxbase 1,601,786 899,013

(145,542) (749,575)

Deferred tax assets were recognised to the extent that it is probable that future taxable profits will beavailableagainstwhichthetemporarydifferencecanbeutilised.


075



7. DEFERRED TAX (ASSETS)/ LIABILITIES (CONT’D)(b) unrecogniseddeferredtaxassets

Thefollowingitemswerenotrecognisedfordeferredtaxassets(statedatgross):-

Group 30.6.2016 31.3.2015 RM RM

Unutilisedtaxlosses (57,963,940) (61,164,944)Unabsorbedcapitalallowances (244,777) (244,777)

(58,208,717) (61,409,721)

Deferredtaxassetsofcertainsubsidiarieshavenotbeenrecognisedinrespectoftheseitemsasitisnotprobable that future taxable profits of the subsidiaries would be available against which the deductibletemporarydifferencescouldbeutilised.

Thedeductibletemporarydifferencesdonotexpireundercurrenttaxlegislation.

8. INVENTORIES Group 30.6.2016 31.3.2015 RM RM

atcarryingamount:-Rawmaterials 2,542,593 2,887,251Work-in-progress 36,787,625 35,439,040Finishedgoods 42,798,016 24,617,854

82,128,234 62,944,145

Duringthefinancialperiod/year,inventoriesoftheGrouprecognisedascostofsalesamountedtoRM240,588,866(31.3.2015:RM130,708,764).Theamountofwrittendownandwrittenoffrecognisedascostsofsalesareasfollows:-

Group 1.4.2015 1.4.2014 to to 30.6.2016 31.3.2015 RM RM

Recognisedinprofitorloss:- Inventorieswrittenoff - 201,449 Inventorieswrittendown - 166,008


076


9. TRADE AND OTHER RECEIVABLES Group Company 30.6.2016 31.3.2015 30.6.2016 31.3.2015 RM RM RM RM

TradeTradereceivables 62,918,560 49,156,442 - -

Non-tradeAdvancetosuppliers 2,879,022 2,377,915 - -Amountduefromasupplier - 149,071 - -Deposits 17,641,234 17,992,034 2,000 2,000Prepayments 5,147,906 6,813,522 - -Sundryreceivables 6,116,704 1,564,964 - -

31,784,866 28,897,506 2,000 2,000

94,703,426 78,053,948 2,000 2,000

Tradereceivablesarenon-interestbearingandarerecognisedattheiroriginalinvoiceamountswhichrepresenttheirfairvaluesoninitialrecognition.

TheGroup’stradecredittermsgrantedtothetradereceivablesrangefrom30daysto120days(31.3.2015:30daysto120days).Othercredittermsareassessedandapprovedbythemanagementonacase-by-casebasis.

10. SHARE CAPITAL GroupandCompany 30.6.2016 31.3.2015 RM RM

authorised:-100,000,000ordinarysharesofRM1each 100,000,000 100,000,000

issuedandfullypaid:- 82,046,114ordinarysharesofRM1each 82,046,114 82,046,114


077



11. BANK BORROWINgS (UNSECURED) Group 30.6.2016 31.3.2015 RM RM

Non-currentTermloans 12,319,291 6,744,449

CurrentBankoverdrafts 1,142,194 1,087,993Bankers’acceptances 21,086,000 15,261,000Trustreceipts 40,528,816 23,411,974Termloans 5,827,654 3,006,383Revolvingcredits 21,850,000 23,400,000

90,434,664 66,167,350

(a) Thebankborrowingsaresupportedby:-

(i) CorporateguaranteebytheCompany;and

(ii) NegativepledgeoverallpresentandfutureassetsoftheGroup.

(b) Thebankborrowingsbearinterestratesspreadofbetween1.00%and1.75%(31.3.2015:1.00%and1.75%)abovetherespectivebankers’baselendingratesorcostoffundsperannum.

(c) Termloansarerepayableonamonthlybasisovertheinstallmentperiod.

12. TRADE AND OTHER PAYABLES Group Company 30.6.2016 31.3.2015 30.6.2016 31.3.2015 RM RM RM RM

TradeTradepayables 14,311,007 7,939,345 - -

Non-tradeAccrualsofexpenses 5,308,652 2,959,841 34,500 32,500Sundrypayables 16,435,391 6,678,920 - -

21,744,043 9,638,761 34,500 32,500

36,055,050 17,578,106 34,500 32,500

Tradepayablesareunsecured,non-interestbearingandwiththecredittermsgrantedbysuppliersranges14daysto90days(31.3.2015:14daysto90days).


078


13. AMOUNT DUE TO SUBSIDIARIESTheamountduetosubsidiariesarenon-traderelated,unsecured,non-interestbearingandrepayableondemand.

14. REVENUE Group Company 1.4.2015 1.4.2014 1.4.2015 1.4.2015 to to to to 30.6.2016 31.3.2015 30.6.2016 31.3.2015 RM RM RM RM

Salesofgoods 503,609,566 337,232,251 - -Dividendincome - - 480,000 300,000

503,609,566 337,232,251 480,000 300,000

15. PROFIT BEFORE TAXProfitbeforetaxisdeterminedaftercharging/(crediting),amongstotheritems,thefollowing:-

Group Company 1.4.2015 1.4.2014 1.4.2015 1.4.2015 to to to to 30.6.2016 31.3.2015 30.6.2016 31.3.2015 RM RM RM RM

Auditfees -auditorsoftheCompany -currentyear 152,000 150,000 20,000 18,000 -underprovisioninprioryear - 500 - - -secondaryauditors 36,361 22,299 - -Non-auditfees 47,000 10,000 10,000 10,000Baddebtswrittenoff 61,006 181,455 - -Depreciationofproperty,plantandequipment 13,748,139 8,837,124 - -Property,plantandequipmentwrittenoff 97,445 152,640 - -Interestexpenses -bankers’acceptances 1,470,454 765,430 - - -bankoverdrafts 77,330 65,656 - - -revolvingcredits 1,484,009 1,225,039 - - -termloans 924,186 174,432 - - -tradecards 21,218 31,426 - - -trustreceipts 788,026 317,697 - -Inventorieswrittenoff - 201,449 - -Inventorieswrittendown - 166,008 - -Operatingleaserental 685,912 393,026 - -Rentalofpremises 53,832,013 32,540,731 - -Rentalofmachinery - 2,050 - -Realised(gain)/lossonforeignexchange (1,388,929) 1,459,850 - -Unrealisedgainonforeignexchange (561,133) (4,510,596) - -Interestincome (13,657) (2,329) - -Gainondisposalofproperty,plant andequipment (6,185) (54,416) - -Dividendincome - - (480,000) (300,000)


079



16. TAX EXPENSE Group Company 1.4.2015 1.4.2014 1.4.2015 1.4.2015 to to to to 30.6.2016 31.3.2015 30.6.2016 31.3.2015 RM RM RM RM

Currenttax -currentyear 1,357,223 1,853,519 - - -underprovisioninprioryears 94,516 35,275 - 181

Totalcurrenttax 1,451,739 1,888,794 - 181

Deferredtax(Note7) -originationandreversaloftemporary differences 573,374 (983,717) - - -under/(over)provisioninprioryears 30,659 (26,754) - -

Totaldeferredtax 604,033 (1,010,471) - -

Taxexpense 2,055,772 878,323 - 181

AreconciliationofincometaxexpenseapplicabletoprofitbeforetaxatthestatutorytaxratetoincometaxexpenseattheeffectivetaxrateoftheGroupandoftheCompanyisasfollows:-


Profitbeforetax 9,168,232 10,906,832 109,690 31,556

TaxatMalaysianstatutoryrateof 24%(31.3.2015:25%) 2,200,376 2,726,708 26,326 7,889Taxeffectinrespectof:-Non-allowableexpenses 1,448,782 821,610 88,874 67,111Underprovisionoftaxexpenseinprior financialyear 94,516 35,275 - 181Deferredtaxunderprovisioninprior financialyears 30,659 (26,754) - -Incomenotsubjecttotax (903,121) (1,312,824) (115,200) (75,000)Effectofchangeintaxrateonopening deferredtax - (7,838) - -Deferredtaxrecognisedatdifferenttaxrate - (90,880) - -Movementondeferredtaxassetsnotrecognised (768,241) (1,237,245) - -Effectofdifferenttaxrate (47,199) (29,729) - -

Taxexpense 2,055,772 878,323 - 181

The above amounts are subject to the acceptance of the Inland Revenue Board of Malaysia and relevant taxauthoritiesofaforeignsubsidiary.


080


17. EARNINgS PER SHARE(a) Thebasicearningspersharehasbeencalculatedbydividingprofitforthefinancialperiod/yearattributable

toownersof theCompanyofRM7,112,460(31.3.2015:RM10,028,509)totheweightedaveragenumberofsharesoutstandingduringthefinancialperiod/yearof82,046,114(31.3.2015:82,046,114).

(b) Dilutedearningspershareequalsbasicearningspershareasthereisnodilutivepotentialordinarysharesoutstandingduringthefinancialperiod.

18. EMPLOYEE BENEFITS EXPENSE Group 1.4.2015 1.4.2014 to to 30.6.2016 31.3.2015 RM RM

Salaries,bonusandotheremoluments 64,674,827 47,078,219Definedcontributionplans 4,839,251 3,685,462

69,514,078 50,763,681

Keymanagementpersonnelare thosepersonnelhavingauthorityandresponsibility forplanning,directingandcontrollingtheactivitiesoftheentityeitherdirectlyorindirectly.

KeymanagementincludesalltheExecutiveDirectorsandSeniorExecutivesoftheGroupandtheCompany.

TheremunerationreceivedbythekeymanagementpersonneloftheGroupandoftheCompanywhichincludestheNon-ExecutiveDirectorsduringthefinancialperiod/yearareasfollows:-


ExecutiveDirectors -Salaries,bonusandotheremoluments 2,252,042 1,815,020 - -Non-ExecutiveDirectors -Fees 170,000 112,500 170,000 112,500SeniorExecutives -Salaries,bonusandotheremoluments 1,832,332 1,176,669 - -

Keymanagementpersonnelcompensation 4,254,374 3,104,189 170,000 112,500


081



19. RELATED PARTY TRANSACTIONSThe Group has related party relationship with its subsidiaries and key management personnel. Related partytransactionsoftheGroupandtheCompanyareasfollows:-

(a) Significantrelatedpartytransactionsduringthefinancialperiod/yearareasfollows:-

Company 1.4.2015 1.4.2014

to to 30.6.2016 31.3.2015 RM RM

Dividendreceivedfromsubsidiaries 480,000 300,000

(b) TheremunerationofkeymanagementpersonnelisdisclosedinNote18tothefinancialstatements.

(c) TheoutstandingbalancesarisingfromtherelatedpartytransactionsasatthereportingdatearedisclosedinNote13tothefinancialstatements.

20. OPERATINg LEASE COMMITMENTSTheGrouphadenteredintoseveraltenancyagreementsfortherentalofretailspaceandfactories,resulting infuturerentalcommitmentwhichcan,subjecttocertaintermsintheagreements,berevisedaccordinglyoruponitsmaturitybasedonprevailingmarketrates.

TheGrouphasaggregatefuturecommitmentsasattheendofeachreportingperiodasfollows:-

Group 30.6.2016 31.3.2015 RM RM

Notlaterthanone(1)year 41,306,363 32,342,832Laterthanone(1)yearbutnotlaterthanfive(5)years 24,055,885 30,355,425

65,362,248 62,698,257

Certain lease rentals are subject to contingent rental, which are determined based on a percentage of salesgeneratedfromboutiques.


082


21. OPERATINg SEgMENTS(a) businesssegments

TheGroupisorganisedintobusinessunitsbasedonthenatureofproductsandservices,whichcomprisesthefollowing:-

(i) GarmentManufacturing Manufacturingandexportingofgarmentsandaccessories

(ii) Retail Retailingoffashionapparelandaccessories

(iii) Others Othersincludeinvestmentholdinganddormantcompanies

Management monitors the operating results of its business units separately for the purpose of makingdecisions about resource allocation and performance assessment. Segment performance is evaluatedbasedonoperatingprofitorlosswhich, incertainrespectsasexplainedinthetablebelow, ismeasureddifferentlyfromoperatingprofitorlossinthefinancialstatements.

GarmentGroup Retail Manufacturing others elimination Note Total30.6.2016 RM RM RM RM RM

RevenueExternalsales 272,076,034 231,533,532 - - 503,609,566Inter-segmentsales - - 480,000 (480,000) (i) -

Totalrevenue 272,076,034 231,533,532 480,000 (480,000) 503,609,566

Results Interestincome 12,626 1,031 - - 13,657Financecosts (3,123,302) (1,641,921) - - (4,765,223)Depreciation (12,496,604) (1,251,535) - - (13,748,139)Othernon-cashincome 29,767 379,100 - - (ii) 408,867Taxexpense (1,726,000) (321,120) - (8,652) (2,055,772)Segmentprofit 5,393,052 2,088,998 83,011 (452,601) 7,112,460

otherinformation Additionsof non-currentassets 33,691,569 564,059 - - (iii) 34,255,628Deferredtaxassets 1,229,734 - - 41,193 1,270,927Segmentassets 149,714,288 125,620,691 102,206,173 (95,664,340) (iv) 281,876,812

Deferredtaxliabilities 804,385 321,000 - - 1,125,385Segmentliabilities 76,473,813 67,947,041 8,531,592 (13,018,056) (v) 139,934,390


083



21. OPERATINg SEgMENTS (CONT’D)(a) businesssegments(Cont’d)

GarmentGroup(Cont’d) Retail Manufacturing others elimination Note Total31.3.2015 RM RM RM RM RM

RevenueExternalsales 200,552,299 136,679,952 - - 337,232,251Inter-segmentsales - 132,405 300,000 (432,405) (i) -

Totalrevenue 200,552,299 136,812,357 300,000 (432,405) 337,232,251

Results Interestincome 1,848 481 - - 2,329Financecosts (1,425,757) (1,153,923) - - (2,579,680)Depreciation (7,273,311) (1,563,813) - - (8,837,124)Othernon-cash (expenses)/income (701,498) 4,564,958 - - (ii) 3,863,460Taxexpense (817,865) (291) (181) (59,986) (878,323)Segmentprofit 5,553,597 4,841,381 (306,483) (59,986) 10,028,509

otherinformationAdditionsof non-currentassets 13,347,591 308,431 - - (iii) 13,656,022Deferredtaxassets 1,483,448 - - 49,845 1,533,293Segmentassets 114,545,111 111,145,830 102,192,522 (102,188,726) (iv) 225,694,737

Deferredtaxliabilities 783,718 - - - 783,718Segmentliabilities 46,317,526 56,241,009 8,510,952 (19,515,043) (v) 91,554,444


084



(i) Inter-segmentrevenuesareeliminatedonconsolidation.

(ii) Othernon-cash(expenses)/incomeconsistofthefollowingitems:-

1.4.2015 1.4.2014 to to 30.6.2016 31.3.2015 RM RM

Baddebtwrittenoff (61,006) (181,455)Inventorieswrittendown - (166,008)Inventorieswrittenoff - (201,449)Gainondisposalofproperty,plantandequipment 6,185 54,416Property,plantandequipmentwrittenoff (97,445) (152,640)Unrealisedgainonforeignexchange 561,133 4,510,596

408,867 3,863,460

(iii) Additionstonon-currentassetsconsistofthefollowingitems:- 30.6.2016 31.3.2015

RM RM

Property,plantandequipment 33,458,589 12,809,783Intangibleassets 797,039 846,239

34,255,628 13,656,022

(iv) The following items are adjusted from segments assets to arrive at total assets reported in theconsolidatedstatementoffinancialposition:-

30.6.2016 31.3.2015 RM RM

Deferredtax 41,193 49,845Investmentinsubsidiaries (82,515,841) (82,515,841)Inventories (171,636) (207,687)Inter-segmentbalances (13,018,056) (19,515,043)

(95,664,340) (102,188,726)


085




(v) Thefollowingitemsareadjustedfromsegmentsliabilitiestoarriveattotalliabilitiesreportedintheconsolidatedstatementoffinancialposition:-

30.6.2016 31.3.2015 RM RM

Inter-segmentbalances (13,018,056) (19,515,043)

(b) Geographicalinformation

TheGroup’srevenueandnon-currentassetsinformationbasedongeographicallocationareasfollows:-

Revenue 1.4.2015 1.4.2014

to to 30.6.2016 31.3.2015

RM RM

Malaysia 272,791,874 200,552,299Europe 69,649,544 11,020,125UnitedStatesofAmerica 130,820,576 110,811,795Japan 408,793 258,262Singapore 29,938,779 14,589,770

503,609,566 337,232,251

Non-currentassets 30.6.2016 31.3.2015

RM RM

Malaysia 93,330,767 72,921,744Cambodia 1,399,711 1,546,953

94,730,478 74,468,697

(c) MajorCustomer’sinformation

There was one major customer with revenue equivalent to 19% (31.3.2015: 21%) of the Group revenuegeneratedfromgarmentmanufacturing.


086


22. FINANCIAL INSTRUMENTS22.1 Categoriesoffinancialinstruments

Thetablebelowprovidesananalysisoffinancialinstrumentscategorisedasfollows:-

(a) LoansandReceivables(“L&R”)

Carrying amount L&R

Group RM RM

30.6.2016financialassets Tradeandotherreceivables(excludeprepayments) 89,555,520 89,555,520 Cashandbankbalances 9,822,897 9,822,897

99,378,417 99,378,417

31.3.2015financialassets Tradeandotherreceivables(excludeprepayments) 71,240,426 71,240,426 Cashandbankbalances 10,227,947 10,227,947

81,468,373 81,468,373

(b) OtherLiabilitiesMeasuredAtAmortisedCost(“AC”)

Carrying amount aC

Group RM RM

30.6.2016 financialliabilities Tradepayablesandotherpayables 36,055,050 36,055,050 Bankborrowings(unsecured) 102,753,955 102,753,955

138,809,005 138,809,005

31.3.2015financialliabilities Tradepayablesandotherpayables 17,578,106 17,578,106 Bankborrowings(unsecured) 72,911,799 72,911,799

90,489,905 90,489,905


087



22. FINANCIAL INSTRUMENTS (CONT’D)22.1 Categoriesoffinancialinstruments(Cont’d)

(a) LoansandReceivables(“L&R”) Carrying amount L&R

Company RM RM

30.6.2016Financialassets Otherreceivables 2,000 2,000 Cashandbankbalances 38,023 38,023

40,023 40,023

31.3.2015 Financialassets Otherreceivables 2,000 2,000 Cashandbankbalances 56,333 56,333

58,333 58,333

(b) OtherLiabilitiesMeasuredAtAmortisedCost(“AC”) Carrying amount aC

Company RM RM

30.6.2016Financialliabilities Otherpayables 34,500 34,500 Amountduetosubsidiaries 8,342,592 8,342,592

8,377,092 8,377,092

31.3.2015 Financialliabilities Otherpayables 32,500 32,500 Amountduetosubsidiaries 8,472,592 8,472,592

8,505,092 8,505,092


088


22. FINANCIAL INSTRUMENTS (CONT’D)22.2 financialRiskManagementobjectivesandPolicies

financialRisks

TheGroupisexposedtofinancialrisksarisingfromtheiroperationsandtheuseoffinancialinstruments.Financial riskmanagementpolicy isestablished toensure thatadequateresourcesareavailable for thedevelopmentoftheGroup’sbusinesswhilstmanagingitscreditrisk,liquidityrisk,foreigncurrencyriskandinterestraterisk.TheGroupoperateswithinclearlydefinedpoliciesandproceduresthatareapprovedbytheBoardofDirectorstoensurethattheeffectivenessoftheriskmanagementprocess.TheGroupdoesnotactivelyengageinthetradingoffinancialassetsforspeculativepurposenordoesitwriteoptions.

ThemainareasoffinancialrisksfacedbytheGroupandtheCompanyandthepolicyinrespectofthemajorareasoftreasuryactivitiesaresetoutasfollows:-

(a) CreditRisk

Credit risk is theriskofafinancial loss to theGroup ifacustomerorcounterparty toafinancialinstrument fails tomeet itscontractualobligations. It is theGroup’spolicy toenter intofinancialinstrument with a diversity of creditworthy counterparties. The Group does not expect to incurmaterialcreditlossesofitsfinancialassetsorotherfinancialinstruments.

Concentration of credit risk exists when changes in economic, industry and geographical factorssimilarly affect the group of counterparties whose aggregate credit exposure is significant inrelationtotheGroup’stotalcreditexposure.TheGroup’stransactionsareenteredintowithdiversecreditworthycounterparties,therebymitigateanysignificantconcentrationofcreditrisk.

It is theGroup’spolicy thatallcustomerswhowish to tradeoncredit termsaresubject tocreditverificationandevaluationprocedures.TheGroupdoesnotoffercredittermswithouttheapprovalofthemanagement.

The Group’s and the Company’s maximum exposure to credit risk is represented by the carryingamountoftradeandotherreceivablesinNote9tothefinancialstatements.

FollowingaretheareaswheretheGroupandtheCompanyareexposedtocreditrisk:-

Receivables

Withacreditpolicyinplacetoensurethecreditriskismonitoredonanongoingbasis,managementhas takenreasonablesteps toensurethatreceivables thatareneitherpastduenor impairedarestatedattheirrealisablevalues.AsignificantportionofthesereceivablesareregularcustomersthathavebeentransactingwiththeGroup.TheGroupusesaginganalysistomonitorthecreditqualityofthereceivables.Anyreceivableshavingsignificantbalancespastduemorethancredittermsgrantedaredeemedtohavehighercreditrisk,andaremonitoredindividually.


089



22. FINANCIAL INSTRUMENTS (CONT’D)22.2 financialRiskManagementobjectivesandPolicies(Cont’d)

financialRisks(Cont’d)

ThemainareasoffinancialrisksfacedbytheGroupandtheCompanyandthepolicyinrespectofthemajorareasoftreasuryactivitiesaresetoutasfollows(Cont’d):-

(a) CreditRisk(Cont’d)

FollowingaretheareaswheretheGroupandtheCompanyareexposedtocreditrisk(Cont’d):-

Receivables(Cont’d)Theaginganalysisoftradereceivablesisasfollows:-

allowanceforimpairmentloss individually Collectively Gross impaired impaired Total Net

Group RM RM RM RM RM

30.6.2016Withincreditterms 62,612,025 - - - 62,612,025Pastdue1-60days butnotimpaired 306,418 - - - 306,418Pastdue61-120days butnotimpaired - - - - -Pastduemorethan 120daysbut notimpaired 117 - - - 117

62,918,560 - - - 62,918,560

allowanceforimpairmentloss individually Collectively Gross impaired impaired Total Net

Group RM RM RM RM RM

31.3.2015Withincreditterms 48,719,839 - - - 48,719,839Pastdue1-60days butnotimpaired 374,835 - - - 374,835Pastdue61-120days butnotimpaired - - - - -Pastduemorethan 120daysbut notimpaired 61,768 - - - 61,768

49,156,442 - - - 49,156,442


090




ThemainareasoffinancialrisksfacedbytheGroupandtheCompanyandthepolicyinrespectofthemajorareasoftreasuryactivitiesaresetoutasfollows(Cont’d):-(a) CreditRisk(Cont’d)

FollowingaretheareaswheretheGroupandtheCompanyareexposedtocreditrisk(Cont’d):-

Receivables(Cont’d)

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

Asat30June2016,tradereceivablesofRM306,535(31.3.2015:RM436,603)werepastbutnotimpaired.Theserelatetoanumberofindependentcustomersforwhomthereisnorecenthistoryofdefault.

Trade receivables that are neither past due nor impaired and neither past due or impaired aredisclosedabove.

Asatthereportingdate,approximately97%(31.3.2015:96%)oftradereceivableswereduefrom9(31.3.2015:8)customers.

Corporateguarantee

The maximum exposure to credit risk amounting to RM188,692,682 (31.3.2015: RM170,414,301),representing unsecured corporate guarantees given to the licensed banks for banking facilitiesgrantedtocertainsubsidiariesasattheendofthereportingperiod.

TheCompanymonitorsonanongoingbasisthefinancialresultsofthesubsidiariesandrepaymentsmadeby thesubsidiaries.Asat theendof the reportingperiod, therewasno indication thatanysubsidiarieswoulddefaultonrepayment.

Thecorporateguaranteedoesnothaveadeterminableeffectonthetermsofthebankingfacilitiesduetothebanksrequiringparent’sguaranteesasapre-conditionforapprovingthebankingfacilitiesgrantedtosubsidiaries.Theactualtermsofthebankingfacilitiesarelikelytobethebestindicatorof“atmarket”termsandhencethefairvalueofthebankingfacilitiesareequaltothebankingfacilitiesamountreceivedby thesubsidiaries.Assuch, there isnovalueon thecorporateguaranteetoberecognisedinthefinancialstatements.

Financial guarantee has not been recognised since the fair value on initial recognition was notmaterial.

Thereisalsonopresentobligation,legalorconstructive,asaresultofpasteventanditisnotprobablethatanoutflowofresourcesembodyingeconomicbenefitswouldberequiredtosettletheobligation.


091






(a) CreditRisk(Cont’d)

Cashandcashequivalents

Thecreditriskforcashandcashequivalentsareconsiderednegligible,sincethecounterpartiesarereputablebankswithhighqualityexternalcreditratings.

(b) LiquidityRisk

Liquidity risk is the risk that the Group and the Company will not be able to meet its financialobligationsasandwhentheyfalldue.

Inmanagingitsexposurestoliquidityrisk,theGroupandtheCompanymaintainalevelofcashandcashequivalentsandbankingfacilitiesdeemedadequatebythemanagementtoensure,asfaraspossible,thatitwillhavesufficientliquiditytomeetitsliabilitiesasandwhentheyfalldue.

TheGroupandtheCompanyaimatmaintainingabalanceofsufficientcashanddepositsandflexibilityinfundingbykeepingdiversesourcesofcommittedanduncommittedbankingfacilitiesfrombanks.

Theliquidityrisksariseprincipallyfromitspayablesandbankborrowings.

Thesummaryofthematurityprofilebasedoncontractualundiscountedrepaymentobligationsareasbelow:-

Maturity Current Non-current

ondemand/ Total Carrying lessthan 1to2 2to5 contractual amount 1year years years cashflowsGroup RM RM RM RM RM

30.6.2016 Non-derivative financialliabilitiesunsecured:- Bankoverdrafts 1,142,194 1,142,194 - - 1,142,194Bankers’acceptances 21,086,000 21,086,000 - - 21,086,000Revolvingcredits 21,850,000 21,944,072 - - 21,944,072Trustreceipts 40,528,816 40,873,588 - - 40,873,588Termloans 18,146,945 6,679,456 6,570,544 6,662,691 19,912,691Tradeandotherpayables 36,055,050 36,055,050 - - 36,055,050

Totalundiscounted financialliabilities 138,809,005 127,780,360 6,570,544 6,662,691 141,013,595


092





(b) LiquidityRisk(Cont’d)

Thesummaryofthematurityprofilebasedoncontractualundiscountedrepaymentobligationsareasbelow:-


ondemand/ Total Carrying lessthan 1to2 2to5 contractual amount 1year years years cashflowsGroup(Cont’d) RM RM RM RM RM

31.3.2015Non-derivative financialliabilitiesunsecured:- Bankoverdrafts 1,087,993 1,087,993 - - 1,087,993Bankers’acceptances 15,261,000 15,261,000 - - 15,261,000Revolvingcredits 23,400,000 24,614,460 - - 24,614,460Trustreceipts 23,411,974 23,547,635 - - 23,547,635Termloans 9,750,832 3,504,825 3,163,887 4,003,800 10,672,512Tradeandotherpayables 17,578,106 17,578,106 - - 17,578,106

Totalundiscounted financialliabilities 90,489,905 85,594,019 3,163,887 4,003,800 92,761,706


093






(b) LiquidityRisk(Cont’d)

Thesummaryofthematurityprofilebasedoncontractualundiscountedrepaymentobligationsareasbelow(Cont’d):-


ondemand/ Total Carrying lessthan 1to2 2to5 contractual amount 1year years years cashflowsCompany RM RM RM RM RM

30.6.2016Non-derivative financialliabilitiesunsecured:-Otherpayables 34,500 34,500 - - 34,500Amountdueto subsidiaries 8,342,592 8,342,592 - - 8,342,592

Totalundiscounted financialliabilities 8,377,092 8,377,092 - - 8,377,092


ondemand/ Total Carrying lessthan 1to2 2to5 contractual amount 1year years years cashflowsCompany RM RM RM RM RM

31.3.2015 Non-derivative financialliabilities unsecured:- Otherpayables 32,500 32,500 - - 32,500Amountdueto subsidiaries 8,472,592 8,472,592 - - 8,472,592

Totalundiscounted financialliabilities 8,505,092 8,505,092 - - 8,505,092

The above amounts reflect the contractual undiscounted cash flows, which may differ from thecarryingamountsoffinancialliabilitiesatthereportingdate.


094





(c) foreignCurrencyRisk

TheGroupisexposedtoforeigncurrencyriskasaresultofitsnormaltradingactivities,wherethecurrency denomination differs from the functional currency. The Group, inter-alia, manages itsforeigncurrencyriskbyenteringintoforwardforeignexchangecontractsasandwhenconsiderednecessarytolimititsforeignexchangeexposure.Exposuretocurrencyriskasawholeismitigatedbytheoperatingenvironmentwhichprovidesforanaturalhedge.Mostpaymentsforforeignpayablesismatchedagainstreceivablesdenominatedinthesameforeigncurrency.

usd sGd euRo hKd TotalGroup RM RM RM RM RM

30.6.2016 Financialassets 4,741,280 - - - 4,741,280Financialliabilities (44,601,162) (42,173) (563,463) (165,861) (45,372,659)

Netexposure (39,859,882) (42,173) (563,463) (165,861) (40,631,379)

usd sGd euRo hKd TotalGroup RM RM RM RM RM

31.3.2015 Financialassets 14,086,073 1,189,932 - - 15,276,005Financialliabilities (25,807,452) (66,029) - (92,305) (25,965,786)

Netexposure (11,721,379) 1,123,903 - (92,305) (10,689,781)

Foreigncurrencysensitivityanalysis

Thefollowingtable illustratesthesensitivityofprofitor losswithregardsto theGroup’sfinancialassetsandfinancialliabilitiesandtheRM/USD,RM/SGD,RM/EUROandRM/HKDexchangerateand‘allotherthings’beingequal.

It assumes a +/- 3% (31.3.2015: +/- 2%) change of the RM/USD, +/- 2% (31.3.2015: +/- 1%) RM/SGD,+/-3%(31.3.2015:+/-2%)RM/EUROand+/-3%(31.3.2015:+/-2%)RM/HKDexchangerateatfinancialperiodend.Thispercentagehasbeendeterminedbasedontheaveragemarketvolatilityinexchangeratesintheprevious12months.ThesensitivityanalysisbasedontheGroup’sforeigncurrency financial instruments held at each reporting date and also takes into account exchangecontractsthatoffsetfromchangesincurrencyexchangerates.


095






(c) foreignCurrencyRisk(Cont’d)

If theRMhadstrengthenedagainst theUSD,SGD,EUROandHKD, then the impactwouldbeasfollows:-

effectonprofit/(loss)forthefinancialperiod/year usd sGd euRo hKd TotalGroup RM RM RM RM RM

30.6.2016 1,156,415 843 16,904 4,976 1,179,138

31.3.2015 234,428 (11,239) - 1,846 225,035

If theRMhadweakenedagainst theUSD,HKD,SGDandEURO then the impactonprofit for thefinancialperiodwouldbetheoppositeeffect.

Exposures to foreignexchangeratesvaryduring thefinancialperioddependingon thevolumeofoverseas transactions. Nonetheless, the analysis above is considered to be representative of theGroup’sexposuretocurrencyrisk.

(d) interestRateRisk

InterestrateriskistheriskthatthefairvalueorfuturecashflowsoftheGroup’sandtheCompany’sfinancialinstrumentswillfluctuateduetochangesinmarketinterestrates.

TheGroup’sandtheCompany’sinvestmentsinfixedrateborrowingsareexposedtoariskofchangein their fair value due to changes in interest rates. The Group’s and the Company’s floating rateborrowingsareexposedtoariskofchangeincashflowsduetochangesininterestrates.Investmentsinequitysecurities,shorttermreceivablesandpayablesarenotsignificantlyexposedtointerestraterisk.

Interestratesensitivityanalysis

At financial period end, the Group is exposed to changes in market interest rates through bankborrowingsatfloatinginterestrates.


096





(d) interestRateRisk(Cont’d)

Interestratesensitivityanalysis(Cont’d)

The interestrateprofileof theGroup’sandof theCompany’ssignificant interest-bearingfinancialinstruments,basedoncarryingamountsatendofthereportingdatewereasfollows:-

Group 30.6.2016 31.3.2015 RM RM

FloatingrateinstrumentsFinancialliabilities - Bankers’acceptances 21,086,000 15,261,000 - Bankoverdrafts 1,142,194 1,087,993 - Revolvingcredits 21,850,000 23,400,000 - Trustreceipts 40,528,816 23,411,974 - Termloans 18,146,945 9,750,832

Totalfinancialliabilities 102,753,955 72,911,799

Cashflowsensitivityanalysisforfloatingrateinstruments

The following table illustrates the sensitivity of profit to a reasonably possible change in interestratesof+/-25(31.3.2015:+/-25)basispoints(“bp”).Thesechangesareconsideredtobereasonablypossiblebasedonobservationofcurrentmarketconditions.Thecalculationsarebasedonachangein the average market interest rate for each period, and the financial instruments held at eachreportingdatethataresensitivetochangesininterestrates.Allothervariablesareheldconstant.

Group effectonprofitfor thefinancialperiod/ year/equity

+25bp -25bp RM RM

30.6.2016 (256,885) 256,88531.3.2015 (182,279) 182,279


097






(d) interestRateRisk(Cont’d)

Fairvaluesensitivityanalysisforfixedrateinstruments

TheGroupandtheCompanydonotaccountforanyfixedratefinancialassetsandliabilitiesatfairvalue throughprofitor lossanddonotdesignatederivativesashedging instrumentsundera fairvaluehedgeaccountingmodel.Therefore,achangeininterestratesattheendofthereportingperiodwouldnotaffectprofitorloss.

22.3 fairValueoffinancialinstruments

Thetablebelowanalysesfinancialinstrumentscarriedatfairvalueandthosenotcarriedatfairvalueforwhichfairvalueisdisclosed,togetherwiththeirvaluesandcarryingamountsshowninthestatementsoffinancialposition.

fairvalueof financialinstruments notcarriedat Carrying fairvalue amount Level3Group RM RM

30.6.2016 financialliabilities Bankborrowings 104,958,545 102,753,955

31.3.2015 financialliabilities Bankborrowings 75,183,600 72,911,799

Financialinstrumentsnotcarriedatfairvalue

Type descriptionofvaluationtechniqueandinputsused Bankborrowings Discounted cash flows using a rate based on the current market rate of

borrowingsoftherespectiveentitiesatthereportingdate.


098


22. FINANCIAL INSTRUMENTS (CONT’D)22.3. fairValueoffinancialinstruments(Cont’d)

Policyontransferbetweenlevels

Thefairvalueofanassettobetransferredbetweenlevelsisdeterminedasofthedateoftheeventorchangeincircumstancesthatcausedthetransfer.

23. CAPITAL MANAgEMENTThe Group’s objectives when managing capital is to maintain a strong capital base and safeguard the Group’sabilitytocontinueasagoingconcern,soastomaintaininvestors,creditorsandmarketconfidenceandtosustainfuturedevelopmentofthebusiness.TheDirectorsmonitoranddeterminetomaintainanoptimalgearingratiothatcomplieswithdebtcovenantsandregulatoryrequirements.

TheGroupmonitorscapitalusingagearing ratio,whichare the total interestbearingborrowingsoverowners’equity.Theborrowingsincludetermloansandotherloanswhileowners’equityreferstotheequityattributabletotheownersoftheCompany.

TotalcapitalmanagedatGrouplevelistheshareholders’fundsasshowninthestatementsoffinancialposition. Group

30.6.2016 31.3.2015 RM RM

Totalborrowings - longtermborrowings 12,319,291 6,744,449 - shorttermborrowings 90,434,664 66,167,350

102,753,955 72,911,799Less:Cashandbankbalances (9,822,897) (10,227,947)

Netdebt 92,931,058 62,683,852

Totalequity 141,942,422 134,140,293

Debt-to-equityratio 65% 47%

24. COMPARATIVE INFORMATIONOn28December2015,theCompanyanditssubsidarieshadchangedtheirfinancialyearendfrom31March2016to30June2016.

Thecomparativefiguresare for theperiod from1April2014 to31March2015.Consequently, thecomparativeamountsforthestatementsofprofitorlossandothercomprehensiveincome,statementsofchangesinequityandrelatednotestothefinancialstatementsarenotcomparable.


099



DISCLOSURE OF REALISED AND UNREALISED PROFITS OR LOSSESBursaMalaysiaSecuritiesBerhadhadon25March2010and20December2010, issueddirectives requiringall listedcorporationstodisclosethebreakdownofretainedearningsintorealisedandunrealisedonaGroupandCompanybasis,asthecasemaybe,inquarterlyreportsandannualauditedfinancialstatements.

ThebreakdownofretainedearningsasatthereportingdatethathasbeenpreparedbytheDirectorsinaccordancewiththe directives from Bursa Malaysia Securities Berhad stated above and Guidance on Special Matter No. 1 issued on20December2010bytheMalaysianInstituteofAccountantsareasfollows:

Group Company 30.6.2016 31.3.2015 30.6.2016 31.3.2015 RM RM RM RM

Totalretainedearnings -Realised 101,506,051 89,876,145 11,509,445 11,399,755 -Unrealised 706,675 5,260,171 - -

102,212,726 95,136,316 11,509,445 11,399,755Less:Consolidationadjustments (41,266,859) (41,302,909) - -

Retainedearningsasperfinancialstatements 60,945,867 53,833,407 11,509,445 11,399,755

ThedisclosureofrealisedandunrealisedprofitsorlossesaboveissolelyforcomplyingwiththedisclosurerequirementsstipulatedinthedirectivebyBursaMalaysiaSecuritiesBerhadandshouldnotbeappliedforanyotherpurposes.


100

List oF

properties

NeTbooK aPPRoXiMaTe VaLue LaNdaRea/ asaT TeNuRe/ buiLTuP daTeof aGeof 30JuNe2016LoCaTioN/desCRiPTioN usaGe (sQfT) aCQuisiTioN buiLdiNG (RM)

CaNTeRaNaPPaReLsdNbhd

1. HS(D)17652 99years’leasehold 23,958/ 23.7.1994 29 PTB2862 expiringin2086/ DaerahKluang,Johor 3storeyfactory 63,851 andlocatedat 28JalanBakau 86000Kluang,Johor 2,019,9812. HS(D)3513 60years’leasehold 21,780/ 23.7.1994 41 PTB2863 expiringin2035/ DaerahKluang,Johor singlestoreyoffice 21,284 andlocatedat andfactory 30JalanBakau 86000Kluang,Johor

3. HS(D)4135 60years’leasehold 21,780/ 21.4.1997 40 PTB2274 expiringin2036/ DaerahKluang,Johor 3storeyofficeand 19,023 andlocatedat singlestoreyfactory 22JalanBakau 86000Kluang,Johor

4. HS(D)4136 60years’leasehold 21,780/ 21.4.1997 40 PTB3069 expiringin2036/ DaerahKluang,Johor 3storeyofficeand 19,023 2,724,681 andlocatedat singlestoreyfactory 24JalanBakau 86000Kluang,Johor

5. HS(D)1310 60years’leasehold 21,780/ 21.4.1997 44 PTB2836 expiringin2032/ DaerahKluang,Johor singlestoreyfactory 10,224 andlocatedat 26JalanBakau 86000Kluang,Johor

HELD BY THE gROUP


101

NeTbooK aPPRoXiMaTe VaLue LaNdaRea/ asaT TeNuRe/ buiLTuP daTeof aGeof 30JuNe2016LoCaTioN/desCRiPTioN usaGe (sQfT) aCQuisiTioN buiLdiNG (RM)

6. HS(D)37183 Freehold/ 50,739/ 8.5.1999 17 PTD50039 2storeyofficeand 24,600 DaerahKluang,Johor singlestoreyfactory andlocatedat 18Jalan20,Taman SriKluang 86000Kluang,Johor 3,641,7977. HS(D)37184 Freehold/ 55,688/ 8.5.1999 17 PTD50040 2storeyofficeand 32,100 DaerahKluang,Johor singlestoreyfactory andlocatedat 20Jalan20,Taman SriKluang 86000Kluang,Johor

JeRasiabRaNdssdNbhd

8. 2,4and6Lorong6E/91 99years’leasehold 5,250/ 5.6.2000 33 1,742,823 TamanShamelinPerkasa expiringin2082/ Batu3½,JalanCheras 3unitsof 21,000 56100KualaLumpur 4storeyoffice

9. 8Lorong6E/91 99years’leasehold 1,760/ 1.9.2002 33 555,894 TamanShamelinPerkasa expiringin2082/ Batu3½,JalanCheras 4storeyoffice 7,040 56100KualaLumpur

10. Unit2-4-12,Block2 99years’leasehold —/ 5.6.2000 33 94,967 4thFloor expiringin2082/ TamanShamelinPerkasa mediumcost 1,023 Batu3½,JalanCheras apartment/hostel 56100KualaLumpur

11. 12,Jalan5/91 99years’leasehold 12,750/ 1.7.2008 33 3,566,869 ShamelinIndustrialPark expiringin2082/ Batu3½,JalanCheras 1½storey 18,000 56100KualaLumpur warehouse

List oFproperties

HELD BY THE gROUP


102

ANALYsis oF

sHAreHoLDiNGsAS AT 5 OCTOBER 2016

shaReCaPiTaLAuthorisedShareCapital : RM100,000,000IssuedandPaid-upCapital : RM82,046,114ClassofShares : OrdinarysharesofRM1.00eachVotingRights : One(1)voteperordinaryshare

disTRibuTioNofshaRehoLdiNGs

No.of ToTaLsiZeofhoLdiNGs hoLdeRs hoLdiNGs %

Lessthan100shares 1,967 73,318 0.09100to1,000shares 1,337 627,202 0.771,001to10,000shares 814 3,600,436 4.3910,001to100,000shares 334 9,854,321 12.01100,001tolessthan5%ofissuedshares 36 24,895,831 30.345%andaboveofissuedshares 4 42,995,006 52.40

4,492 82,046,114 100.00

subsTaNTiaLshaRehoLdeRsasPeRReGisTeRofsubsTaNTiaLshaRehoLdeRs

directinterest deemedinterest No.of %of No.of %ofName shares shares shares shares

1. DatukYapFungKong 23,205,004 28.28 - -2. Dato’DrYongYuanTan 12,810,000 15.61 - -3. Dato’SriMohdHaniffbinAbdAziz 10,980,002 13.38 - -4. DatukFooTonHin 2,424,000 2.95 4,000,000(1) 4.88(1)

Note:-

(1) Deemedinterestbyvirtueofsharesheldbyhisson.

diReCToRs’shaRehoLdiNGsasPeRReGisTeRofdiReCToRs’shaRehoLdiNGs

directinterest deemedinterest No.of %of No.of %ofNameofdirectors shares shares shares shares

sharesheldintheCompany Dato’NikMohamedDinbinDatukNikYusoff 10,000 0.01 - -DatukYapFungKong 23,205,004 28.28 - -PronobKumarSenGupta - - - -Dato’TanYikHuay 120,000 0.15 - -Dato’DrYongYuanTan 12,810,000 15.61 - -Dato’SriMohdHaniffbinAbdAziz 10,980,002 13.38 - -AndrewHongTatBeng - - - -


103

ANALYsis oF sHAreHoLDiNGs

AS AT 5 OCTOBER 2016

30LaRGesTseCuRiTiesaCCouNThoLdeRs

No.of %ofName shares shares

1. DatukYapFungKong 23,205,004 28.282. MaybankSecuritiesNominees(Tempatan)SdnBhd 10,980,002 13.38

PledgedSecuritiesAccountForDato’SriMohdHaniffbinAbdAziz(REM851-Margin)3. RHBNominees(Asing)SdnBhd 4,500,000 5.48

PledgedSecuritiesAccountForDato’DrYongYuanTan4. Dato’DrYongYuanTan 4,310,000 5.255. JustinFooFangSean 4,000,000 4.886. RHBCapitalNominees(Asing)SdnBhd 4,000,000 4.88

PledgedSecuritiesAccountForDato’DrYongYuanTan(CEB)7. TeohChengHua 3,168,400 3.868. DatukFooTonHin 2,424,000 2.959. UOBMNominees(Tempatan)SdnBhd 1,720,840 2.10

UnitedOverseasBank(Malaysia)Bhd(PCP)10. YeohPhekLeng 1,035,000 1.2611. MahKingWoonSendirianBerhad 750,000 0.9112. CimsecNominees(Tempatan)SdnBhd 705,000 0.86

DanahartaManagersSdnBhd13. OngLianChoon 700,000 0.8514. MahSiewHoe 600,000 0.7315. MaybankNominees(Tempatan)SdnBhd 481,800 0.59

PledgedSecuritiesAccountforLamFookLeong16. HLIBNominees(Tempatan)SdnBhd 431,500 0.53

PledgedSecuritiesAccountForGohEeLik@GoeyMeePheng17. CimsecNominees(Tempatan)SdnBhd 381,900 0.47

CIMBforTanBeeGaik(PB)18. KehWeeKiet 346,800 0.4219. LimKianHuat 312,000 0.3820. LooLeeLian 300,000 0.3721. MaybankNominees(Tempatan)SdnBhd 288,700 0.35

LeeChoonHong22. LimGuekChing 280,000 0.3423. PublicInvestNominees(Asing)SdnBhd 273,300 0.33

ExemptAnForPhillipSecuritiesPteLtd(Clients)24. ChaiEnWei 220,600 0.2725. KenangaNominees(Tempatan)SdnBhd 210,000 0.26

PledgedSecuritiesAccountforLeeSokYong 26. TanKhengAun 204,841 0.2527. KhoChewChong 193,200 0.2428. ChongTeckSeng 187,200 0.2329. RHBNominees(Tempatan)SdnBhd 178,700 0.22

PledgedSecuritiesAccountforNgKimChoo30. LeauKimPun@LiauKimPun 176,000 0.21

66,564,787 81.13


104

Notice oF ANNUAL

GeNerAL MeetiNG

NOTICE IS HEREBY gIVENthatthe16thAnnualGeneralMeeting(“AGM”)ofJerasiaCapitalBerhad(“theCompany”)willbeheldatMutiaraRoom,GroundFloor,TheSaujanaHotelKualaLumpur,SaujanaResort,JalanLapanganTerbangSAAS,40150SelangoronWednesday,23November2016at10.00a.m.totransactthefollowingbusiness:

AgENDA

ORDINARY BUSINESS1. ToreceivetheAuditedFinancialStatementsforthefinancialperiodended30June2016andthe

ReportsofDirectorsandAuditorsthereon.

2. To approve the payment of Directors’ Fees amounting to RM212,500 for 15 months financial

periodended30June2016(12monthsended31/3/2015:RM170,000.00).

3. Tore-electDatukYapFungKongasaDirectorwhoretiresbyrotationinaccordancewithArticle81oftheCompany’sArticlesofAssociation.

4. To re-appoint Messrs. SJ Grant Thornton as Auditors of the Company and to authorise theDirectorstodeterminetheirremuneration.

SPECIAL BUSINESS5. Toconsiderandifthoughtfit,passthefollowingOrdinaryResolutionsinaccordancewithSection

129(6)oftheCompaniesAct,1965:

(a) “THAT Dato’ Nik Mohamed Din bin Datuk Nik Yusoff who retires in accordance withSection129(2)oftheCompaniesAct,1965beandisherebyre-appointedaDirectoroftheCompanytoholdofficeuntiltheconclusionofthenextAnnualGeneralMeeting.”

(b) “THAT Dato’ Dr Yong Yuan Tan who retires in accordance with Section 129(2) of theCompaniesAct,1965beandisherebyre-appointedaDirectoroftheCompanytoholdofficeuntiltheconclusionofthenextAnnualGeneralMeeting.”

(c) “THATDato’TanYikHuaywhoretiresinaccordancewithSection129(2)oftheCompaniesAct,1965beandisherebyre-appointedaDirectoroftheCompanytoholdofficeuntiltheconclusionofthenextAnnualGeneralMeeting.”

Resolution1

Resolution2

Resolution3

(Pleaserefertoexplanatory

Note1)

Resolution4

Resolution5

Resolution6


105

Notice oF ANNUALGeNerAL MeetiNG

Resolution7

6. To consider and if thought fit, pass with or without modifications, the following OrdinaryResolution:

ProposedRenewalofauthorityforthePurchasebytheCompanyofitsownshares(“Proposedsharebuy-back”)

“THATsubjecttotheCompaniesAct,1965(“Act”),theArticlesofAssociationoftheCompanyandtherequirementsofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”),theCompanybeandisherebyauthorisedtopurchasesuchnumberofordinarysharesofRM1.00eachintheCompanyasmaybedeterminedbytheDirectorsfromtimetotimethroughBursaSecuritiesuponsuchtermsandconditionsastheDirectorsmaydeemfitintheinterestoftheCompanyprovidedthattheaggregatenumberofsharespurchasedpursuanttothisresolutiondoesnotexceedtenpercentumofthetotalissuedandpaid-upsharecapitaloftheCompany;

ANDTHATanamountnotexceedingtheretainedprofitsoftheCompanyatthetimeofpurchasebe allocated by the Company for the Proposed Share Buy-Back. The retained profits of theCompany stood at RM11,509,445 as at 30 June 2016. The Company does not have any sharepremiumreserves;

AND THAT the authority conferred by this resolution shall commence immediately upon thepassingofthisresolutionandshallcontinuetobeinforceuntil:

i. theconclusionofthenextAnnualGeneralMeeting(“AGM”)oftheCompany,atwhichtimeitwilllapse,unlessrenewedbyanordinaryresolutionpassedbytheshareholdersoftheCompanyinageneralmeeting;

ii. theexpiryoftheperiodwithinwhichthenextAGMoftheCompanyisrequiredtobeheldpursuanttoSection143(1)oftheAct(butshallnotextendtosuchextensionasmaybeallowedpursuanttoSection143(2)oftheAct);or

iii. revokedorvariedbyanordinaryresolutionpassedbytheshareholdersoftheCompanyinageneralmeeting;

whicheveristheearlier;

ANDTHAT theDirectorsbeandareherebyauthorised toactand to takeallstepsanddoallthingsas theymaydeemnecessaryorexpedient inorder to implement,finaliseandgive fulleffecttotheProposedShareBuy-BackANDFURTHERTHATauthoritybeandisherebygiventotheDirectorstodecideintheirabsolutediscretiontoeitherretainthesharespurchasedastreasury shares to be either distributed as share dividends or resold on Bursa Securities orsubsequentlycancelled,ortocancelthesharessopurchased,oracombinationofboth.”

7. Totransactanyotherbusinessofwhichduenoticehasbeengiven.


106

Notice oF ANNUALGeNerAL MeetiNG

ByOrderoftheBoard

WongKwaiyin(MaiCsa7008652)TansookMei(Ls02892)CompanySecretaries

KualaLumpur27October2016

EXPLANATORY NOTES ON ORDINARY BUSINESS1. Agenda1ismeantfordiscussiononly,astheprovisionofSection169(1)oftheCompaniesAct,1965doesnotrequire

aformalapprovaloftheshareholdersandhence,Agenda1isnotputforwardforvoting.

EXPLANATORY NOTES ON SPECIAL BUSINESS:2. ordinaryResolutions-Re-appointmentofdirectorsinaccordancewithsection129(6)oftheCompaniesact,1965 There-appointmentofDato’NikMohamedDinbinDatukNikYusoff,Dato’DrYongYuanTanandDato’TanYikHuay,

personsovertheageof70years,asDirectorsoftheCompanytoholdofficeuntiltheconclusionofthenextAGMoftheCompanyshalltakeeffectiftheproposedResolutions4,5and6havebeenpassedatthe16thAGM.

3. ordinaryResolution-Proposedsharebuy-back Theproposedresolution,ifpassed,willempowertheDirectorstopurchasetheCompany’sownsharesthroughBursa

MalaysiaSecuritiesBerhaduptotenpercentumoftheissuedandpaid-upsharecapitaloftheCompany.DetailedinformationontheProposedShareBuy-BackissetoutintheShareBuy-BackStatementdated27October2016.

NOTES ON APPOINTMENT OF PROXY:1. Amemberentitledtoattendandvoteatthemeetingisentitledtoappointaproxytoattendandvoteinsteadofhim,

andthataproxyneednotalsobeamember.AmembermayappointanypersonashisproxyandtheprovisionsofSection149(1)(b)oftheCompaniesAct,1965shallnotapply.

2. AmemberwhoisanauthorisednomineeasdefinedundertheSecuritiesIndustry(CentralDepositories)Act,1991mayappointatleastone(1)butnotmorethantwo(2)proxiesinrespectofeachsecuritiesaccountitholdswithordinarysharesoftheCompanystandingtothecreditofthesaidsecuritiesaccount.

3. Where a member is an exempt authorised nominee which holds ordinary shares in the Company for multiplebeneficialownersinonesecuritiesaccount(“omnibusaccount”),thereisnolimittothenumberofproxieswhichtheexemptauthorisednomineemayappointinrespectofeachomnibusaccountitholds.

4. Whereamemberortheauthorisednomineeappointsmorethanone(1)proxy(subjectalwaystoamaximumoftwo (2) proxies), or where an exempt authorised nominee appoints two (2) or more proxies, the proportions ofshareholdingstoberepresentedbyeachproxymustbespecifiedinorderfortheappointmentstobevalid.

5. The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney dulyauthorisedinwritingor,iftheappointorisacorporation,eitherunderthecorporation’scommonsealorunderthehandofanofficerorattorneydulyauthorised.

6. Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority,ifany,mustbedepositedattheofficeoftheShareRegistrar,TricorInvestor&IssuingHouseServicesSdnBhdatUnit32-01,Level32,TowerA,VerticalBusinessSuite,Avenue3,BangsarSouth,No.8,JalanKerinchi,59200KualaLumpurnotlessthanforty-eight(48)hoursbeforethetimeappointedforholdingthemeeting.

7. OnlymemberswhosenameappearintheRecordofDepositorsasat16November2016shallbeeligibletoattend,speakandvoteatthemeetingorappointaproxytoattend,speakand/orvoteonhis/herbehalf.

ForM oF

proxY(IncorporatedinMalaysia)

I/We(FullnameasperNRIC/CertificateofIncorporationincapitalletters)

CompanyNo./NRICNo.(new) (old)

of(Fulladdress)

beingamemberofJeRasiaCaPiTaLbeRhad,herebyappoint: (FullnameasperNRICincapitalletters)

NRICNo.(new) (old)

orfailinghim/her NRICNo.(new) (old) (FullnameasperNRICincapitalletters)

orfailinghim/hertheChairmanoftheMeetingasmy/ourproxytoattendandvoteforme/usandonmy/ourbehalfatthe16thAnnualGeneralMeetingoftheCompanytobeheldatMutiaraRoom,GroundFloor,TheSaujanaHotelKualaLumpur,SaujanaResort,JalanLapanganTerbangSAAS,40150SelangoronWednesday,23November2016at10.00a.m.andatanyadjournmentthereof,andtovoteasindicatedbelow:

Pleaseindicatewitha“X”intheappropriatespacehowyouwishyourvotestobecast.Ifyoudonotindicatehowyouwishyourproxytovoteonanyresolution,theproxywillvoteorabstainfromvotingathisorherdiscretion.

Datedthis dayof 2016

Signature(s)/CommonSealofMember(s)

Notes:1. Amemberentitledtoattendandvoteatthemeetingisentitledtoappointaproxytoattendandvoteinsteadofhim,andthataproxyneednotalsobea

member.AmembermayappointanypersonashisproxyandtheprovisionsofSection149(1)(b)oftheCompaniesAct,1965shallnotapply.

2. AmemberwhoisanauthorisednomineeasdefinedundertheSecuritiesIndustry(CentralDepositories)Act,1991mayappointatleastone(1)butnotmorethantwo(2)proxiesinrespectofeachsecuritiesaccountitholdswithordinarysharesoftheCompanystandingtothecreditofthesaidsecuritiesaccount.

3. WhereamemberisanexemptauthorisednomineewhichholdsordinarysharesintheCompanyformultiplebeneficialownersinonesecuritiesaccount(“omnibusaccount”),thereisnolimittothenumberofproxieswhichtheexemptauthorisednomineemayappointinrespectofeachomnibusaccountitholds.

4. Whereamemberortheauthorisednomineeappointsmorethanone(1)proxy(subjectalwaystoamaximumoftwo(2)proxies),orwhereanexemptauthorisednomineeappointstwo(2)ormoreproxies,theproportionsofshareholdingstoberepresentedbyeachproxymustbespecifiedinorderfortheappointmentstobevalid.

5. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointororofhisattorneydulyauthorisedinwritingor,iftheappointorisacorporation,eitherunderthecorporation’scommonsealorunderthehandofanofficerorattorneydulyauthorised.

6. Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority, ifany,mustbedepositedattheofficeoftheShareRegistrar,TricorInvestor&IssuingHouseServicesSdnBhdatUnit32-01,Level32,TowerA,VerticalBusinessSuite,Avenue3,BangsarSouth,No.8,JalanKerinchi,59200KualaLumpurnotlessthanforty-eight(48)hoursbeforethetimeappointedforholdingthemeeting.

7. OnlymemberswhosenameappearintheRecordofDepositorsasat16November2016shallbeeligibletoattend,speakandvoteatthemeetingorappointaproxytoattend,speakand/orvoteonhis/herbehalf.

Numberofsharesheld

CdsaccountNo.

No. RESOLUTIONS For Against1. ApprovalofDirectors’Fees

2. Re-electionofDatukYapFungKongasDirector

3. Re-appointmentofMessrs.SJGrantThorntonasAuditors

4. Re-appointmentofDato’NikMohamedDinbinDatukNikYusoffasDirector

5. Re-appointmentofDato’DrYongYuanTanasDirector

6. Re-appointmentofDato’TanYikHuayasDirector

7. ProposedRenewalofAuthorityforthepurchasebytheCompanyofitsownshares

No.ofshares Percentage

Proxy1

Proxy2

Total 100%

forappointmentoftwoproxies,percentageofshareholdingstoberepresentedbytheproxies:

TheShareRegistrar

TRiCoRiNVesToR&issuiNGhouseseRViCessdN.bhd.(11324-h)

Unit32-01,Level32,TowerAVerticalBusinessSuiteAvenue3,BangsarSouthNo.8,JalanKerinchi59200KualaLumpur

affiXsTaMP

heRe

www.jerasia.biz

Nos2-8,Lorong6E/91,TamanShamelinPerkasa,Batu31/2JalanCheras,56100KualaLumpur.TelNo:+603-92837518FaxNo:+603-92837536

Contents JerasIa caPItal Berhad (503248-a) annual rePort 2016 002 corporate structure

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Transcript of Contents JerasIa caPItal Berhad (503248-a) annual rePort 2016 002 corporate structure