323544010

2015
ANNUAL REPORT
RENEWABLE
ENERGY
INFORMATION &
COMMUNICATION
TECHNOLOGIES
RECRUITMENT
SERVICES &
TALENT OUTSOURCING
TOUCHING LIVES, IMPROVING LIFE.
CONTENTS
Vision, Missions & Values............................................................. 2
Corporate Profile........................................................................... 3
Notice of Annual General Meeting................................................ 4
Financial Highlights....................................................................... 7
Corporate Structure....................................................................... 8
Corporate Information................................................................. 10
Directors Profiles........................................................................ 12
Chairmans Statement................................................................. 14
Statement on Corporate Governance......................................... 17
Audit Committee Report.............................................................. 28
Statement of Directors Responsibilities...................................... 32
Statement on Internal Control..................................................... 33
Additional Compliance Information.............................................. 35
Financial Statements................................................................... 37
List of Properties Held...............................................................112
Analysis of Shareholdings.........................................................113
Proxy Form
Mexter Technology Berhad
Annual Repor t 2015
(647673-A)
Vision, Missions & Values

Our Vision
To always be ranked among the top choice companies in the markets we serve.
Our Missions
a. We will deliver products, solutions and services that are superior.
b. We will only sell what we can value add to.
c. We will be ruthlessly efficient.
d. We will be transparent, ethical and fair in all our dealings.
Our Values
a) Trustworthiness

Trust is the foundation for successful relationships with our customers, business partners, employees and
suppliers. The motto we value is simple yet powerful: Say what you can do, and do what you say. These
words hold within them the added values of Integrity, Honesty, Truth, Reliability and Consistency.
b) Team Spirit

The culture of mutual respect and consideration for each other, together with participation for the greater
good of everyone is instilled in every employee. This inspires a sense of unity which we believe translates
into delivering results.
c) Passion

We always remind ourselves that passion is the difference between mediocrity and excellence. It is the
quality that transforms work into a labour of love which makes the difference between a satisfied customer
and a delighted customer.
d) Resourcefulness
Being resourceful enables us to solve complex problems speedily and effectively in the fast-paced
environment in which we operate. As the world becomes smaller and its borders blurred, one person or,
for that matter, one company alone does not have all the answers to the growing complexity of business
challenges. Resourcefulness is the will to collaborate and draw on resources and knowledge both within and
without the company to deliver the best solutions to our clients.
e) Being Positive

We believe that a positive attitude towards work and life is the secret to achieving universal success. At
Mexter, we create an environment that nurtures growth and encourages our employees to develop a can
do spirit. We meet challenges head-on and seek to go beyond the clients expectations in every job we do.
Annual Repor t 2015
(647673-A)
CORPORATE PROFILE
Mexter Technology Berhad (Mexter or Company) is the holding company of the Mexter Group which as at 31
December 2015 comprises of seventeen (17) subsidiaries. The Mexter Group, which commenced operations in
1992, provides a wide range of solutions and services as below:(a) The provision of E-manufacturing Solutions wherein the Group develops and markets manufacturing
process management solutions which focuses on aiding high volume discrete and hybrid manufacturers to
better plan, schedule, monitor and control their production assets and processes with 3 clear objectives: to
reduce manufacturing costs, drive up product quality and achieve production output targets on a continuous
improvement curve.
(b) The provision of Talent Outsourcing and Recruitment Services wherein the Group provides highly
skilled professionals and services to a diverse range of industries, varying from manufacturing to
telecommunications, healthcare to O&G, and more. The division has the capabilities to provide a complete
suite of services that encompasses manpower and project outsourcing, right up to support and maintenance
outsourcing. In addition, we also provide recruitment services to assist our clients who are searching for
skilled personnel.
(c) The provision of Computing and Electronics Services wherein the Group provides a one-stop shop
service to source, supply, implement and maintain IT hardware including servers, desktop workstations,
laptops, barcode and printing equipment, storage, network equipment, electronic and security products
and building material. In addition, the Group also provides electronics manufacturing services to a range
of established manufacturers. This entails custom designing, fabricating, assembling and testing special
purpose printed circuit boards and electronic components.
(d) The provision of Mobile Services and Solutions wherein the Group via its 80%-owned subsidiary,
MexComm Sdn Bhd (MexComm) provides a mobile messaging gateway for client to facilitate the
broadcasting of mobile content to end-users globally. MexComm provides a wide range of services that
include:

Mobile Bulk Services

Mobile Reverse Billing Services
Mobile Content Development
Mobile Financial Services
Mobile Interactive TV Services
(e) The provision of Mobile and Wed Applications Developments Services wherein the Group provides
both in house products and development services for external customers based on their needs and
requirements. In house products are applications that are developed to be put on sales in the Apple App
Store and Android Google Play for mobile phone user purchase and downloading. Development services
are customized projects for external customers where e-Catalogue, e-Magazine and corporate marketing
apps are offered.
(f) The provision of Renewable Energy Products Sales and Services wherein the Group provides design,
development, consulting, marketing, supply, installation, testing and commissioning services for all forms
of environmental friendly renewable energy and power generated products by any source whether steam,
hydro or tidal, water, wind, solar, hydrocarbon fuel or any other form, kind or description.
(g) The provision of Digital Security Solutions wherein the Group provides architectural hardware and
security solutions for door and window applications including multilevel master keying system. The group
carrying multiple international renowned brands with wide range of products choice aims at providing our
customers the ease of mind securing their homes and properties while maintaining stylish and elegant living
environment.
Mexter understands that success depends on partnerships built on the principles of interdependence - Mexter
needs its clients as much as its clients need the services it provides. Mexters business model is based on
forging business partnerships based on mutual trust, professionalism and a commitment to give the best to each
of our clients.
The Mexter Group operates primarily in Malaysia whereby it has offices in key strategic locations (Kuala Lumpur,
Penang and Melaka) which allows it to be close to its client hence enabling it to better serve its customers. In
addition, the Mexter Group also has offices in Thailand, China and Singapore to cater for its major overseas
clientele and plans to set up more overseas offices in future as part of its expansion strategy.
The greatest asset of the Group is its people. For that reason, the Group currently employs nearly 70 peoples
equipped with the right domain knowledge and skill sets to occupy various senior, middle management and
technical positions to spur the Group to the next level.
Annual Repor t 2015
(647673-A)
NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN that the Twelfth Annual General Meeting of the Company will be held at Dewan
Perdana, Bukit Kiara Equestrian & Country Resort, Jalan Bukit Kiara, Off Jalan Damansara, 60000 Kuala Lumpur
on Thursday, 16 June 2016 at 9.00 a.m. for the following purposes:AGENDA
1. To receive the Audited Financial Statements for the year ended 31 December 2015 together
with the reports of the Directors and Auditors thereon.
(Please refer to
Note A)
2. To approve the payment of Directors Fees of up to RM133,500 for the financial period
ending 31 March 2017.
(Resolution 1)
(Please refer to
Note B)
3. To re-elect the following directors retiring under the respective provision of the Articles of
Association of the Company, and who being eligible, offered themselves for re-election:a) Ivan Sia Teck Fatt
b) Yee Teck Fah
Article 98(1)
Article 98(1)
(Resolution 2)
(Resolution 3)
4. To re-appoint Messrs. Baker Tilly Monteiro Heng as Auditors of the Company for the
ensuing year and to authorise the Directors to fix their remuneration.
(Resolution 4)
5. AS SPECIAL BUSINESSES
To consider and if thought fit, to pass the following resolution: ORDINARY RESOLUTIONS
a) Continue in Office as Independent Non-Executive Director(s)
i)
That authority be and is hereby given to Andrew Su Meng Kit who has served as Senior
Independent Non-Executive Director of the Company for a cumulative term of more than
nine years, to continue to serve as Senior Independent Non-Executive Director of the
Company in accordance with the Malaysian Code on Corporate Governance 2012.
(Resolution 5)
ii) That authority be and is hereby given to Dato Hj Mohammad Mokhtar Bin Hj Hasan who
has served as an Independent Non-Executive Chairman of the Company to continue to
serve as Independent Non-Executive Chairman of the Company upon expiry of his tenure
of nine years as Independent Non-Executive Chairman with effect from 1 March 2017 in
accordance with the Malaysian Code on Corporate Governance 2012.
(Resolution 6)
b) Authority to Issue Shares

That pursuant to Section 132D of the Companies Act, 1965 and approvals from the
Bursa Malaysia Securities Berhad (Bursa Securities) and other relevant governmental/
regulatory authorities where such authority shall be necessary, the Board of Directors be
authorised to issue and allot shares in the Company from time to time until the conclusion
of the next Annual General Meeting and upon such terms and conditions and for such
purposes as the Board of Directors may, in its absolute discretion, deem fit provided that
the aggregate number of shares to be issued shall not exceed ten per centum (10%) of the
issued share capital of the Company for the time being, and that the Board of Directors be
empowered to obtain the approval for the listing of and quotation for the additional shares
so issued on the Bursa Securities.
6. To transact any other business of which due notice shall have been given in accordance
with the Companies Act, 1965.
By Order of the Board
HOW WEE LING (MAICSA 7033850)
OOI EAN HOON (MAICSA 7057078)
Secretaries
Kuala Lumpur
Date : 29 April 2016
(Resolution 7)
Annual Repor t 2015
(647673-A)
(Continued)
NOTE:
A. This Agenda item is meant for discussion only as the provision of Section 169(1) of the Companies Act, 1965
and the Companys Articles of Association do not require a formal approval of the shareholders and hence,
is not put forward for voting.
B. Upon the change of financial period end (FPE) of the Company from 31 December 2016 to 31 March 2017
which was announced on 15 March 2016, it is thus appropriate for the Company to seek a formal approval
of the shareholders for such payment of Directors fee under the new FPE. Such proposed Fee has been
reduced and proposed for 15 months as compared to the amount approved for previous Financial Year
Ended 31 December 2015.
Proxy
1. For the purpose of determining a member who shall be entitled to attend and vote at the AGM, the Company
shall be requesting the Record of Depositors as at 9 June 2016. Only a depositor whose name appears on
the Record of Depositors as at 9 June 2016 shall be entitled to attend, speak and vote at the said meeting
as well as for appointment of proxy(ies) to attend and vote on his/her stead.
2. A proxy may but need not be a member of the Company and the provision of Section 149(1)(b) of the
Companies Act, 1965 shall not apply to the Company.
3. A member shall be entitled to appoint more than one (1) proxy to attend and vote at the same meeting.
Where a member appoints more than one (1) proxy, the appointment shall be invalid unless he specifies the
proportions of his holdings to be represented by each proxy.
4. If the appointor is a corporation, this form must be executed under its Common Seal or under the hand of its
attorney.
5. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the
Company for multiple beneficial owners in one securities account (omnibus account), there is no limit
to the number of proxies which the exempt authorized nominee may appoint in respect of each omnibus
account it holds.
6. To be valid this form duly completed must be deposited at the Registered Office of the Company at
L-05-01, No. 2 Jalan Solaris, Solaris Mont Kiara, 50480 Kuala Lumpur not less than forty-eight (48) hours
before the time for holding the meeting.
Explanatory Note On Special Business:
1. Resolution 5 - Continue in Office as Senior Independent Non-Executive Director
Mr. Andrew Su Meng Kit, the Senior Independent Non-Executive Director of the Company has served
the Board as an Independent Non-Executive Director of the Company for a cumulative term of more than
nine (9) years. After having assessed the independence of Mr. Andrew Su and also the assessment by
the Nomination Committee (NC), regards him to be independent based amongst others, he has remained
objective and independent in exercising his judgment when a matter is put before him for decision, he
also has the experience to make informed decision and participate actively and contribute positively during
deliberations or discussions at Board Meetings. To that, the Board with the recommendation of the NC,
recommend Mr. Andrew Su to continue to serve as Senior Independent Non-Executive Director of the
Company.
The proposed Resolution 5, if passed, enable Mr. Andrew Su to continue to act as Senior Independent
Non-Executive Director of the Company. Otherwise, he will be re-designated as a Non-Independent NonExecutive Director and relinguish his position as the Senior Independent Non-Executive Director of the
Company upon the conclusion of the 12th Annual General Meeting.
Annual Repor t 2015
(647673-A)

2. Resolution 6 - Continue in Office as the Independent Non-Executive Chairman
Dato Hj Mohammad Mokhtar Bin Hj Hasan is the Independent Non-Executive Chairman of the Company
who has served on the Board since 1 March 2008. His term of office as an Independent Non-Executive
Director will be 9 years cumulatively by 28 February 2017, which is before the AGM to be held in year 2017. In
accordance with the Malaysian Code on Corporate Governance 2012 (Code), the tenure of an independent
director should not exceed a cumulative term of nine years. It is thus appropriate for the Company to
recommend such retention upon expiry of his tenure of nine years as Independent Non-Executive Director
at this forthcoming AGM. After having assessed the independence of Dato Hj Mohammad Mokhtar and also
the assessment by the NC, regards him to be independent based amongst others, he has demonstrated
throughout the terms of his office to be independent by exercising independent judgment when a matter is
put before him for decision. Thus, he would be able to function as check and balance, provide broader view
and brings an element of objectivity to the Board. To that, the Board with the recommendation of the NC,
recommend Dato Hj Mohammad Mokhtar to continue to serve as Independent Non-Executive Chairman of
the Company.
The proposed Resolution 6, if passed, enable Dato Hj Mohammad Mokhtar to continue to act as the
Independent Non-Executive Chairman of the Company. Otherwise, he will be re-designated as a NonIndependent Non-Executive Chairman of the Company with effect from 1 March 2017.
3. Resolution 7 - Authority to issue Shares
The proposed Resolution No. 7, if passed, will grant a renewed general mandate (Mandate 2016) and
empower the Directors of the Company to issue and allot shares up to an amount not exceeding in total ten
per centum (10%) of the issued share capital of the Company from time to time and for such purposes as the
Directors consider would be in the interest of the Company. In order to avoid any delay and costs involved
in convening a general meeting, it is thus appropriate to seek shareholders approval. This authority will,
unless revoked or varied by the Company in general meeting, expire at the next Annual General Meeting of
the Company.
The Mandate 2016 will provide flexibility to the Company for allotment of shares for any possible fund
raising activities, including but not limited for further placing of shares, for the purpose of funding future
investment(s), acquisition(s) and/or working capital.
As at the date of this Notice, the Company did not issue any shares pursuant to the mandate granted to
the Directors at the 11th Annual General Meeting. The Company did not issue any share pursuant to the
mandate granted because there was no investment, acquisition or working capital that required fund raising
activity.
Annual Repor t 2015
(647673-A)
FINANCIAL HIGHLIGHTS
2011
RM mil
2012
RM mil
2013
RM mil
2014
RM mil
2015
RM mil
51.9
33.7
32.8
43.2
39.5
Profit/(loss) before tax
1.2
(3.3)
(3.0)
(0.9)
(1.6)
Profit/(loss) after tax & Noncontrolling Interests
0.6
(3.0)
(2.7)
(1.2)
(2.0)
Property, plant and equipment
4.3
4.3
3.9
4.3
4.7
Current assets
15.9
10.7
16.6
21.8
20.4
Total assets
20.6
16.5
21.5
27.1
26.9
Share capital
8.9
8.9
17.9
19.7
19.7
(1.1)
(4.1)
(7.6)
(8.7)
(9.1)
Shareholders funds
7.8
4.8
10.3
11.0
10.6
Earnings per share (sen)
0.7
(3.4)
(2.4)
(0.7)
(1.0)
0.10
0.05
0.06
0.06
0.05
Revenue
Reserves
Net Assets per share (sen)
Annual Repor t 2015
(647673-A)
CORPORATE STRUCTURE
100%
100%
Mexter (M) Sdn. Bhd.
100%
Mexter MSC Sdn. Bhd.
100%
Mexter International Limited
100%
Tonerex Technologies Sdn. Bhd.
80%
MexComm Sdn. Bhd.
49% Mobile Holding Ltd
Mexter (S) Pte. Ltd
51%
Ezy M Holding Ltd
100%
100% E-G6 Solution (Thailand) Co. Ltd
100%
MexComm Limited
100%
MexComm Corporation (Thailand) Ltd
100%
Ezymobile International Sdn Bhd
90% P.T. MexComm
100%
Agensi Pekerjaan GenY Hr Sdn. Bhd.
100%
Adios Interactive Sdn. Bhd.
100%
Mexter SunOasis Sdn Bhd
100%
Locktech International Sdn. Bhd.
10%
Annual Repor t 2015
CORPORATE STRUCTURE
(647673-A)
(Continued)
The corporate structure of Mexter Group as of 31 December 2015 is as follow:

Subsidiaries
Principal activities
Shareholding
Provision of IT solutions and IT outsourcing services.
100%
Mexter MSC Sdn. Bhd.
Performing R&D and the provision of e-manufacturing

solutions and IT outsourcing services.
100%
Mexter International Limited
Dormant
100%
Tonerex Technologies Sdn. Bhd.
Dealers of test probes, jigs & fixtures solutions,

functional tester solutions and power products.
100%
MexComm Sdn. Bhd.
Provision of mobile messaging gateway solutions and

services.
80%
Agensi Pekerjaan GenY Hr Sdn Bhd Provision of manpower services and project outsourcing
100%
Adios Interactive Sdn. Bhd
Providing mobile and web applications developments;

advertising and publishing
100%
Mexter SunOasis Sdn. Bhd.
Dealers of sustainable energy and services
100%
Locktech International Sdn Bhd
Dealers of electronic and security products and building

materials
100%
Provision of IT solutions and IT outsourcing services.
100%
Ezymobile International Sdn. Bhd.
Provision of IT solutions in tele-communication industry

and mobile messaging gateway solutions and services
100%
PT. MexComm
Provision of IT solutions in tele-communication industry.
90%
MexComm Limited
Providing mobile messaging gateway solutions and

services
100%
Providing innovative mobile solutions and creative,

value-adding advertising services to mobile network
operators.
Investment holding company
100%
Subsidiary of Mexter (M) Sdn. Bhd.

Mexter (S) Pte. Ltd.
Subsidiary of MexComm Sdn. Bhd.
MexComm Corporation (Thailand)

Ltd
Mobile Holding Ltd
49%
Subsidiary of Ezymobile International Sdn. Bhd.

PT. MexComm
Provision of IT solutions in tele-communication industry.
10%
E-G6 Solution (Thailand) Co. Ltd
Provision of web design and content development

services
100%
Ezy M Holding Ltd
100%
51%
Subsidiary of Mobile Holding Ltd.
Subsidiary of Ezy M Holding Ltd.

Mobile Holding Ltd
10
Annual Repor t 2015
(647673-A)
CORPORATE INFORMATION
BOARD OF DIRECTORS
Dato Hj Mohammad Mokhtar Bin Hj Hasan

(Chairman / Independent Non-Executive Director)
Ivan Sia Teck Fatt
(Managing Director / Chief Executive Officer)
Kuan Khian Leng
(Redesignated as Non-Independent Non-Executive Director
w.e.f. 1 January 2016)
Andrew Su Meng Kit
(Senior Independent Non-Executive Director)
Yee Teck Fah
(Independent Non-Executive Director)
AUDIT COMMITTEE
Andrew Su Meng Kit

(Chairman)
Yee Teck Fah
REMUNERATION COMMITTEE

(Chairman)
Andrew Su Meng Kit
Ivan Sia Teck Fatt
NOMINATION COMMITTEE
Yee Teck Fah

(Chairman)
Andrew Su Meng Kit
COMPANY SECRETARIES
Ooi Ean Hoon (MAICSA 7057078)

How Wee Ling (MAICSA 7033850)
Annual Repor t 2015
CORPORATE INFORMATION
(Continued)
REGISTERED OFFICE
L-05-01, No. 2 Jalan Solaris

Solaris Mont Kiara
50480 Kuala Lumpur, Malaysia
Tel
: (603) 6203 7771
Fax
: (603) 6203 7772
HEAD OFFICE
L-05-01, No. 2 Jalan Solaris

Solaris Mont Kiara
Tel
: (603) 6203 7771
Fax
: (603) 6203 7772
Email : sales@mexter.com.my
Website : www.mexter.com.my
SHARE REGISTRAR
Securities Services (Holdings) Sdn. Bhd.

Level 7, Menara Milenium
Jalan Damanlela
Pusat Bandar Damansara
Damansara Heights
Tel
: (603) 2084 9000
Fax
: (603) 2094 9940
AUDITORS
Baker Tilly Monteiro Heng

Baker Tilly MH Tower,
Level 10, Tower 1, Avenue 5,
Bangsar South City,
59200 Kuala Lumpur
Tel
:(603) 2297 1000
Fax
: (603) 2282 9980
PRINCIPAL BANKER
RHB Bank Berhad

Ground Floor, Podium Block, Plaza OSK
Jalan Ampang, 50450 Kuala Lumpur.
STOCK EXCHANGE LISTING
ACE Market
Bursa Malaysia Securities Berhad
Stock Name : MEXTER
Stock Code : 0075
(647673-A)
11
12
Annual Repor t 2015
(647673-A)
DIRECTORS PROFILES
Aged 65, Malaysian

Independent Non-Executive Chairman
Chairman of Remuneration Committee
Member of Nomination Committee
Member of Audit Committee
He was appointed to the Board of Directors of Mexter on 1 March 2008. He holds a Master in Business
Administration (MBA) from Phoenix International University, New Zealand and a Diploma in Police Science from
Universiti Kebangsaan Malaysia. He retired as the Deputy Commissioner of Police in 2007 after having served
the Malaysian Royal Police for more than 38 years. During his tenure in the police force, he was instrumental
in leading large scale crime prevention operations throughout the country within the various positions he held
which included Deputy Director, Criminal Investigation Department, Officer in-charge of Police District and
Commanding Officer of the Police Field Force and many more. Consequently, he was honoured with numerous
commendations and awards for outstanding leadership and general management, amongst others. His last
position was as the Sabah State Commissioner of Police. He brings with him a wealth of experience in law
enforcement, disaster and crisis management as well as staff management.
Dato Hj Mohammad Mokhtar has attended all Board of Directors Meetings held during the financial year. He
has no conflict of interest with the Company and does not have any relationship with any of the directors and/or
major shareholders of the Company. He has had no conviction for any offences within the past ten (10) years.
Ivan Sia Teck Fatt
Aged 49, Malaysian

Managing Director
Member of Remuneration Committee
He was appointed to the Board of Directors of Mexter on 2 February 2005. He is also the Chief Executive Officer
of the Mexter Group and is in charge of the Groups operations, management, strategic planning as well as the
R&D activities. He graduated from Tunku Abdul Rahman College in 1991 with a Bachelor of Science Degree
in Microelectronics and Physics from Campbell University, North Carolina, United States. He has accumulated
25 years of working experience in both the IT and the automation industries. He began his career in 1991 with
Motorola Sdn Bhd in Seremban as a process automation engineer where he was involved in IT and automation
projects. With his exposure in the IT and the automation industries, he began his entrepreneurial pursuit when
he co-founded Mexter (M) Sdn Bhd (MMSB) in 1992. As one of the founding partners of MMSB, he was
instrumental in the development and expansion of MMSB. Besides driving the business expansion, he has
hands-on technical know-how and was the initiator for many of the in-house developed solutions.
Mr Ivan Sia has attended all Board of Directors Meetings held during the financial year. He has no conflict of
interest with the Company and does not have any relationship with any of the directors and/or major shareholders
of the Company. He has had no conviction for any offences within the past ten (10) years.
Andrew Su Meng Kit
Aged 45, Malaysian

Senior Independent Non-Executive Director
Chairman of Audit Committee
Member of Nomination Committee
Member of Remuneration Committee
He was appointed to the Board of Directors of Mexter on 1 April 2007. He is a member of the Malaysian
Institute of Certified Public Accountants and a Chartered Accountant (Malaysia) with the Malaysian Institute
of Accountants. Started his career under articleship training with an international accounting firm where he
qualified as a Certified Public Accountant. He was involved in various financial and top management positions
in multi-national company, wood based furniture product manufacturing company and internet based company.
He was also a financial/corporate consultant to a company listed on the then Second Board of Bursa Securities
and a Director of Corporate Finance in a merchant bank. He specialises in corporate finance. He is currently the
Executive Director of Asia Knight Berhad and Acme Holdings Berhad, both companies are listed on the Main
Market of Bursa Malaysia.
Annual Repor t 2015
DIRECTORS PROFILES
(647673-A)
13
(Continued)
Andrew Su Meng Kit (continued)

Mr Andrew Su has attended all the Board of Directors Meetings held during the financial year. He has no
conflict of interest with the Company and does not have any relationship with any of the directors and/or major
shareholders of the Company. He has had no conviction for any offences within the past ten (10) years.
Kuan Khian Leng
Aged 40, Malaysian

Non-Independent Non-Executive Director
He was appointed to the Board of Directors of Mexter on 1 July 2007. He was redesignated as Non-Independent
Non-Executive Director of the Company with effect from 1 January 2016. He holds a Bachelor of Engineering as
well as a Master Degree in Management Science and Operational Research from University of Warwick, United
Kingdom. He has more than 15 years of working experience in the engineering, banking and ICT industries.
He began his career as a Civil & Structural engineer at a leading engineering consultancy firm where he was
responsible for the detailed designs of several major projects in Cyberjaya and Putrajaya. After a 2 year stint,
he subsequently moved on to the banking industry where he has held various managerial positions in Risk
Management, Marketing and Business Intelligence divisions. During his time there, he has spearheaded many
notable IT projects and worked closely with local and regional technology teams in developing new business
systems. He was also entrusted with the task of heading teams comprising of personnel from cross-functional
departments to implement new IT solutions. He is currently an Independent Non-Executive Director of Spritzer
Berhad, a company listed on Bursa Securities.
Mr Kuan has attended all the Board of Directors Meetings held during the financial year. He has no conflict of
interest with the Company and does not have any relationship with any of the directors and/or major shareholders
of the Company. He has had no conviction for any offences within the past ten (10) years.
Yee Teck Fah
Aged 59, Malaysian

Independent Non-Executive Director
Chairman of Nomination Committee
Member of Audit Committee
He was appointed to the Board of Directors of Mexter on 1 September 2011. He has a degree in Bachelor of Laws
and a Barrister-at-Law (Lincolns Inn) United Kingdom. He is a practicing lawyer of over 26 years experience and
had served as a solicitor and consultant to several prominent clients which include several public companies
listed on Bursa Securities. Some of his prior engagement as solicitor and consultant include the acquisition and
disposal of companies listed on Bursa Securities, restructuring, placement and underwriting of new issue, rights
issue, transferable subscription rights, call & put option of shares and securities listed on Bursa Securities. He
had also served as a solicitor and consultant to several public companies listed on Bursa Securities in several
real property transactions of substantial value and assisted in the implementation and successful completion of
housing and hotel and commercial developments. In civil litigation, Mr. Yee had acted as legal counsel in a wide
spectrum of cases including shareholders dispute and corporate receivership.
Mr Yee has attended all Board of Directors Meetings held during the financial year. He has no conflict of interest
with the Company and does not have any relationship with any of the directors and/or major shareholders of the
Company. He has had no conviction for any offences within the past ten (10) years.
14
Annual Repor t 2015
(647673-A)
CHAIRMANS STATEMENT
Dear shareholders,
On behalf of the Board of Directors of Mexter Technology Berhad (Mexter), it is
my pleasure to present you the Annual Report and Audited Financial Statements
of the Company and its subsidiaries (the Group) for the financial year ended 31
December 2015.
FINANCIAL HIGHLIGHTS AND REVIEW OF OPERATIONS

For the financial year ended 31 December 2015, the Group has recorded a decrease of 8.5% in revenue to
RM39.52 million with the loss before taxation recorded at approximately RM1.64 million. The decrease was
primarily due to lower sales from Mobile Services division following the weaker market demand.
As a proactive measure to further strengthen the Groups position, the Board has executed the following strategies
in 2016 aimed at aligning and consolidating the business of the Group:(1) Market Strategy wherein the Group intensified efforts to pursue new markets and customers to market its
products and services by leveraging on the current relationship with existing customers and capitalising on
client database of the various divisions to cross sell the Groups suite of products and services.
(2) Product Strategy wherein the Group undertook an exercise to clearly define the Research & Development
(R&D) roadmap for the Group. At the same time, the Group also accelerated the development of new
products which had the highest commercial value with the aim of restoring the Groups advantage over its
competitors.
(3) Operational Strategy wherein the Group had embarked on a group-wide exercise to further define and
refine the robustness of its internal systems and processes which involved the upgrading of its accounting
and human resource system, amongst others.
(4) Cost Control Strategy wherein the Group pursued cost cutting measures to keep the operating costs of
the Group under control by redefining the way the Group carries out its business operations. This initiative
is still on-going and once materialised, is expected to help improve the bottom line of the Group.
(5) Human Capital Strategy wherein the Group, as part of its efforts to lay the foundation for an effective
succession plan invested substantially in human resource by employing capable people equipped with the
right experience, knowledge and skills to fill up senior, middle management and technical positions.
Mobile Innovation Division (ADiOS)
ADiOS Interactive was setup in the beginning of 2012 to provide digital solutions covering Mobile Applications,
Web Applications and Desktop Applications. The company primarily develops mobile applications that run on
the iOS and Android platforms.
In 2014, ADiOS deployed a number of mobile applications for external clients from a diverse range of industries
including Health, Property and Retail. It also did website development, a news portal as well as a social network
site for brand management.
Besides serving external clients, the company also continued to develop its own range of
e-learning apps, a community awareness app and an online marketplace platform system, slated to be launched
in 2016.
Annual Repor t 2015
(647673-A)
15
CHAIRMANS STATEMENT (Continued)

TALENT OUTSOURCING AND RECRUITMENT SERVICES DIVISION (GENY HR)
GENY HR focuses on providing the following human resource services to clients:
Executive Search
Recruitment & Staffing
Outsourcing of Technical Resources
HR Consulting Services
GENY HR also acts as an extension arm in Mexters internal recruitment needs which extends to all divisions.
The company serves clients in multiple fields covering the IT, engineering, property and manufacturing sectors.
The current market trend since the turn of 2015 in Malaysia shows that clients are keen on finding the right talents
with specialized skill sets to reduce wastage on resources. This is aimed to increase productivity without the
need to acquire large numbers of permanent headcounts.
In finding the right talents with the right competitive wages that fulfills these client needs, we have been building
a database of talents which include both local and foreign talents primarily in the IT fields. The signs are positive
as we continue to grow with successful executive placements and interest from our clients.
MOBILE SERVICES DIVISION (MEXCOMM)
The SMS gateway business remains the primary income generator for Mexcomm, services include Bulk and
Premium SMSs are provided to clients who are made up of content providers and corporations.
In year 2015, the Mexcomm applications development team has started developing a Community Preschool
application on mobile platforms. The application targets preschoolers aged 3-6 to help them learn about moral,
letters, numbers and counting, shapes, colors, sizes, and patterns. It includes a collection of varied and engaging
learning activities that teaches skills in reading, comprehension, and analysis using images, words and actions.
Mexcomm were nominated for 2 awards in 2015 for its contribution to the industry:
>Winner of The Silver Award Winner in Mobile Content Providers of the Year category, Mobile Business
Excellence Awards 2015
>The Top Nominee of EY Women Entrepreneur of the Year 2015 Malaysia
RENEWABLE ENERGY DIVISION
Mexter SunOasis Sdn Bhd has diversified its business road map in 2015 when the Feed In Tariff quota given by
SEDA, the Sustainable Energy Development Authority, is currently poised to end by 2017. Moving forward the
company will focus on delivering Green Products that promotes Energy Efficiency.
Facilities owners are looking for new solutions that will help them cope with rising electricity costs. We are
working closely with international financier companies to offer clients minimum upfront cost and up to a 5 years
instalment plan to implement the following green products.
1.
2.
3.
4.
5.
6.
7.
Smart LED Lightings with motion sensors

DC Motor Fan Coil Unit for Air Conditioning Systems
Voltage Optimizers
Solar Air Conditioning Systems
Solar Off Grid Systems
Solar PV Inverters
Solar PV Modules
16
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(647673-A)
CHAIRMANS STATEMENT (Continued)

CORPORATE DEVELOPMENTS
i)
On 1 July 2015, the following subsidiary companies of MEXTER have submitted the application to
Companies Commission of Malaysia (CCM) to strike off their name from the Register under Section 308 of
the Companies Act, 1965 as these companies have been dormant since incorporation:Date of
Incorporation
Shareholdings
(Ordinary shares
of RM1.00 each)
Shareholdings
(%)
ELIXIR INTEGRATED SYSTEMS SDN. BHD.

(Company No. 961990-M)
28.09.2011
100
100.00
MEXTER ESOLUTIONS SDN. BHD.

(Company No. 972691-U)
22.12.2011
70
Name of subsidiary company
Dividends
The Board of Mexter does not recommend any dividend in respect of the financial year ended 31 December 2015.
FUTURE OUTLOOK / PROSPECTS
The Malaysian economy is likely to see a moderate growth of 4.0%-4.5% in 2016 on expectations of slower
export growth and a pullback in domestic consumption after the government implemented Goods and Services
Tax, which is 6% in April 2015. Lower oil prices were also playing a role in the slowdown. However the supportive
government policy measures especially on the public infrastructure projects of the Economic Transformation
Programme (ETP) are expected to continue driving the growth. The implementation of structural reforms, as
envisioned in the governments New Economic Model, will be vital for boosting competitiveness and sustaining
growth in 2016.
The Board and management will continue to implement business rationalization strategies, by focusing on
effective marketing activities, penetrating new unsaturated overseas markets, developing new solutions and
services, streamlining operations, maintaining prudence in expenditures to ultimately put products and services
at a competitive price to the market, while maintaining the level of services that the market and our clients expect.
Whilst the results of some of these initiatives have borne fruit, most elements of these strategies are ongoing
exercises.
Barring any unforeseen circumstances, the Board expects the Group to stabilize its earnings and improve on its
financial position.
Board changes
There were no changes to the board in 2015.
Acknowledgement
On behalf of the Board, I would like to take this opportunity to extend its appreciation and thanks to the members
of our management team and staff for their hard work and commitment.
The Board also wish to record our gratitude and thanks to customers, suppliers, business associates, bankers,
government authorities and most importantly, the shareholders for their unwavering support and confidence in
the Company.
Thank you.
Chairman
Annual Repor t 2015
(647673-A)
17
STATEMENT ON CORPORATE GOVERNANCE

The Board of Directors (the Board) of Mexter Technology Berhad (Mexter or the Company) recognises the
importance of good corporate governance and is committed to ensure that good corporate governance is being
practised by the Group in order to safeguard stakeholders interests as well as enhancing shareholders value.
This Statement sets out the manner in which the Group has applied and the extent of compliance with the
principles and recommendations as set out in the Malaysian Code on Corporate Governance 2012 (MCCG
2012 or the Code).
1. ESTABLISH CLEAR ROLES AND RESPONSIBILITIES
1.1 Clear functions of the Board and Management
The Board is responsible for formulating and reviewing the strategic plans and key policies of the
Company, and charting the course of the Groups business operations whilst providing effective
oversight of Managements performance, risk assessment and controls over business operations.
The Board delegates and confers some of its authorities and discretion on the Chairman, Executive
Directors, and Management as well as on properly constituted Board Committees comprising mainly
Non-Executive Directors.
The role of Management is to support the Executive Directors and implement the running of the general
operations and financial business of the Company, in accordance with the delegated authority of the
Board.
The Board Committees are made up of the Audit Committee (AC), Nomination Committee (NC)
and Remuneration Committee (RC); and are entrusted with specific responsibilities to oversee the
Groups affairs, with authority to act on behalf of the Board in accordance with their respective Terms of
Reference (TOR). At each Board meeting, minutes of the Board Committee meetings are presented
to keep the Board informed. The Chairman of the relevant Board Committees also reports to the Board
on key issues deliberated by the Board Committees at their respective meetings.
In general, the Non-Executive Directors are independent of Management. Their roles are to constructively
challenge Management and monitor the success of Management in delivering the approved targets
and business plans within the risk appetite set by the Board. They have free and open contact with
Management at all levels, and they engage with the external and internal auditors to address matters
concerning Management and oversight of the Companys business and operations.
Key matters reserved for the Boards approval include the annual business plan and budget, capital
management and investment policies, authority limits / levels, risk management policies, declaration
of dividends, business continuity plan, issuance of new securities, business restructuring, expenditure
above a certain limit, material acquisitions and disposition of assets.
1.2 Roles and responsibilities of the Board
In discharging its stewardship, the Board is constantly mindful of safeguarding the interests of the
Groups stakeholders and is ultimately responsible for the performance of the Group. The Board
assumes the following core responsibilities:

Reviewing and adopting strategic plans for the Group;

Overseeing the conduct of the Groups business to evaluate whether the business is being properly
managed;
Identifying principal risks and ensuring the implementation of appropriate systems to manage these
risks;
Succession planning including appointing, training, fixing the compensation of and, where
appropriate, replacing senior management;
18
Annual Repor t 2015
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(Continued)
1. ESTABLISH CLEAR ROLES AND RESPONSIBILITIES (continued)

1.2 Roles and responsibilities of the Board (continued)

Developing and implementing an investor relation programme or shareholder communication policy

for the Company; and
Reviewing the adequacy and the integrity of the Groups internal control systems and management
information systems including systems for compliance with applicable laws, regulations, rules,
directives and guidelines.
1.3 Ethical standards through Code of Ethics

The Companys Codes of Ethics are set out in the Companys Employee Handbook, which covers
all aspects of the Companys business operations, such as confidentiality of information, conflict of
interest, dishonest conduct and assault. MCCG 2012 is expected to govern the standards of ethics
and good conduct expected of Directors and employees of the Group. The Code of Ethics for Directors
includes principles relating to their duties, conflict of interest and dealings in securities are available at
the Companys website.
Presently, the Group does not have the Whistleblower Policy and Procedures (WPP). As a measure to
govern the conduct of its employees, the Management would be guided by its Employees Hand Book.
1.4 Strategies promoting sustainability
The Board promotes good corporate governance in the application of sustainability practices throughout
the Group, the benefits of which are believed to translate into better corporate performance. Additionally,
the Companys activities on corporate social responsibilities are disclosed in page 36 of this Annual
Report.
1.5 Access to information and advice
The Directors have individual and independent access to the advice and dedicated support services
of the Company Secretaries in ensuring the effective functioning of the Board. The Directors may seek
advice from the Management on issues under their respective purview. The Directors may also interact
directly with the Management, or request further explanation, information or updates on any aspect
of the Companys operations or business concerns from them. The timeframe for the Board/Board
Committees to receive the relevant meeting papers was at least 7-days before the date fix for meeting.
In addition, the Board may seek independent professional advice at the Companys expense on specific
issues to enable it to discharge its duties in relation to matters being deliberated.
1.6 Qualified and competent Company Secretaries
The Company Secretaries play an advisory role to the Board in relation to the Companys constitution,
Boards policies and procedures and compliance with the relevant regulatory requirements, codes or
guidance and legislations. The Company Secretaries support the Board by ensuring that all Board
meetings are properly conducted and deliberations at the Board and Board Committee meetings are
well captured and recorded. The Company Secretaries also keep the Board updated on changes in
the Bursa Malaysia Securities Berhad (Bursa Securities) ACE Market Listing Requirements (Listing
Requirements) and directives issued by the regulatory authorities, and the resultant implications to the
Company and the Directors in relation to their duties and responsibilities.
Annual Repor t 2015
(647673-A)
19
(Continued)
1. ESTABLISH CLEAR ROLES AND RESPONSIBILITIES (continued)

1.7 Board Charter
The Board has made available its Board Charter on the corporate website. The document clearly
sets out the roles and responsibilities of the Board and Board Committees and the processes and
procedures for convening their meetings. It serves as a reference and primary induction literature
providing prospective and existing Board members and Management insights into the fiduciary and
leadership functions of the Directors of the Company. The Board reviews its charter regularly, to keep
it up to date with changes in regulations and best practices and ensure its effectiveness and relevance
to the Boards objectives.
2. STRENGTHEN COMPOSITION
2.1 Nomination Committee (NC)
The NC of Mexter was established on 27 February 2007 to assist the Board in recommending
appointment of new Directors and assessing the effectiveness of the Board.
The membership of the NC is as follows:
Chairman
Members

: Yee Teck Fah (Independent Non-Executive Director)

: Andrew Su Meng Kit (Senior Independent Non-Executive Director)
Dato Hj Mohammad Mokhtar Bin Hj Hasan (Independent Non-Executive Director)
The NC assumes the following core responsibilities:

formulating the nomination, selection and succession policies for members of the Board;
review the structure, size and diversity (including without limitation, gender, age, cultural and
educational background, ethnicity, professional experience, skills, knowledge and length of service)
of the Board;
consider the election criteria and develop procedures for the sourcing and election of candidates to
stand for election by Mexters shareholders or to fill casual vacancies of Directors;
identify and nominate candidates to the Board for it to recommend to Shareholders for election as
Directors;
undertake an assessment of its Independent Directors annually;
review the training needs for the Directors regularly; and
establishing a set of quantitative and qualitative performance criteria to evaluate the performance
of each member of the Board, each Board Committee and reviewing the performance of the Board
as a whole.
Notwithstanding the recommendation of the MCCG 2012, the Board is presently of the view that the
Chairman of NC is no necessity to be held by the Senior Independent Director as Mr. Yee Teck Fah has
served effectively as Chairman based on his calibre, qualification, experience and personal qualities,
particularly his ability to act in the best interest of the Company, to discharge his duties as Chairman of
NC with unbiased judgement.
Details of the TOR for NC are available at its corporate website.
2.2 Develop, maintain and review criteria for recruitment and annual assessment of Directors
The Company has in placed its procedures and criteria for appointment of new directors. All candidates
for appointment are first considered by the NC, taking into account the mix of skills, competencies,
experience, professionalism and other relevant qualities required to well manage the business, with
the aim to meet the current and future needs of the Board composition. The NC also evaluates the
candidates character and ability to commit sufficient time to the Group. Other factors considered for
appointment of Independent Director will include the level of independence of the candidate. During the
financial year ended 31 December 2015, no new director was appointed.
20
Annual Repor t 2015
(647673-A)
(Continued)
2. STRENGTHEN COMPOSITION (continued)

2.2 Develop, maintain and review criteria for recruitment and annual assessment of Directors
(continued)
The NC will also be reviewing the composition of respective Board Committee of the Company to
ensure its effectiveness in functioning.
The NC has also established a set of quantitative and qualitative performance criteria to evaluate the
performance of each member of the Board, each Board Committee and reviewing the performance of
the Board as a whole. The criteria for assessment of Directors shall include attendance record, intensity
of participation at meetings, quality of interventions and special contributions.
On 24 February 2016, an assessment of the effectiveness of the Board, respective Board Committee
and Independence (the Assessment) were carried out in respect of the financial year ended 31
December 2015. Appraisal forms which comprising quantitative and qualitative performance criteria to
evaluate the performance of each member of the Board as well as each Board Committee, were being
circulated at the Meeting for assessment. The NC reviewed the required mix of skills, experience and
other qualities of the Board and Board Committee and agreed that it has the necessary mix of skill,
experience and other necessary qualities to serve effectively.
In accordance with the Companys Articles of Association (AA), all Directors including Executive
Directors are subject to retirement by rotation at least once in every three years and are eligible for reelection. One-third of the Directors or nearest to one-third (1/3) of the Board shall retire at each Annual
General Meeting (AGM).
Any person appointed by the Board either to fill a casual vacancy or as an addition to the existing
directors, shall hold office until the next AGM and shall then be eligible for re-election.
Also, during the Assessment, the NC recommended to the Board on those Directors who retire pursuant
to Article 98 (1) of the AA, being eligible, to seek re-election during the AGM to be held on 16 June 2016.
Notwithstanding the recommendation of the MCCG 2012, the Board is presently of the view that there
is no necessity to fix a specific gender diversity policy. However, the Board will endeavour to tap talent
from human capital market from time to time with the aim to have at least one female director in its
Board in the future.
2.3 Remuneration policies
The RC was established on 27 February 2007 and is responsible for recommending to the Board on
the remuneration framework as well as the remuneration package of Executive Directors to ensure
that rewards commensurate with their contributions to the Groups growth and profitability in order
to align the interest of the Directors with those of the shareholders. The Committee also ensures the
level of remuneration for Non-Executive Directors and Executive Directors are linked to their level of
responsibilities undertaken and contributions to the effective functioning of the Board.
The membership of the RC is as follows:
Chairman
Members

: Dato Hj Mohammad Mokhtar Bin Hj Hasan (Independent Non-Executive Director)

: Andrew Su Meng Kit (Senior Independent Non-Executive Director)
Ivan Sia Teck Fatt (Managing Director)
The Companys remuneration policy for Directors is formulated to attract and retain individuals of the
necessary calibre needed to run the business of the Group successfully. The remuneration is structured
to link experience, expertise and level of responsibility undertaken by the Directors. The Directors play
no part in deciding their own remuneration and shall abstain from discussing or voting on their own
remuneration.
Annual Repor t 2015
(647673-A)
21
(Continued)
2. STRENGTHEN COMPOSITION (continued)

2.3 Remuneration policies (continued)
The current remuneration policy of the Group is summarised as follows:
a) The Directors salary for Executive Directors are set at a competitive level for similar roles within
comparable markets, reflect the performance of the director, skills and experience as well as
responsibility undertaken.
b) Directors Fees are based on a standard fixed fee and are subject to approval by its shareholders
at the AGM.
c) Meeting Allowance All the Directors are entitled to a fixed amount of allowance paid in accordance
with the number of meeting attended during the year.
d) The RC may obtain independent professional advice in formulating the remuneration package of its
Directors.
Details of the total remuneration of the Directors of the Company for the financial year ended 31
December 2015 are as follows:
Directors
Executive Directors
Non-Executive Directors
Total
Salaries &
Allowance
RM000
Fees
RM000
Benefits in
Kind
RM000
Total
RM000
851
48
899
12
96
108
863
144
1,007
The number of Directors for each band of total remuneration received is as follows:Executive
Directors
Non-Executive
Directors
Total
Below RM50,000
RM350,001 to RM400,000
RM500,001 to RM550,000
Band
Details of the remuneration of each Director are not disclosed as the Board is of the view that the
transparency and accountability aspects of corporate governance on disclosure of Directors
remuneration are appropriately served by the above disclosures.
Details of the TOR for RC are available at its corporate website.
3. REINFORCE INDEPENDENCE
3.1 Annual assessment of independence
The NC played an important role to assist the Board in assessing the independence of Non-Executive
Directors of the Company on annual basis. The NC develops the criteria to assess independence of
Independent Director, include but not limited to directors background, family relationships, interest of
shareholdings in the Company and related party transactions with the Group.
Based on the Assessment conducted by the NC, the Board is generally satisfied with the level of
independence demonstrated by all the Independent Directors of the Company and their ability to act in
the best interest of the Company.
22
Annual Repor t 2015
(647673-A)
(Continued)
3. REINFORCE INDEPENDENCE (continued)

3.2 Tenure of Independent Directors
Notwithstanding the recommendation of the MCCG 2012, the Board is presently of the view that there is
no necessity to fix a maximum tenure limit for Directors as there are significant advantages to be gained
from the long-serving Directors who possess tremendous insight and knowledge of the Companys
businesses and affairs. Similarly, the Board does not set a time-frame on how long an Independent
Director should serve on the Board, mainly for the following reasons:

The ability of a Director to serve effectively as an Independent Director is very much dependent on
his calibre, qualification, experience and personal qualities, particularly his integrity and objectivity,
and has no real connection to his tenure as an Independent Director.
NC conducts an annual assessment of Independent Directors in respect of inter alia their skills,
experience and contributions, and whether the Independent Directors are able to discharge
their duties with unbiased judgement. Furthermore, the NC also reviews the Directors Profile of
Independent Directors and assess its family relationship, interest of shareholdings in the Company
and related party transactions with the Group (if any).
3.3 Shareholders approval to retain an Independent Director who has served for more than nine (9)
years
Mr. Andrew Su Meng Kit
Mr. Andrew Su Meng Kit, the Senior Independent Non-Executive Director of the Company has served
the Board as an Independent Non-Executive Director of the Company for a cumulative term of more
than nine (9) years.
After having assessed and reviewed, the NC was of the view that Mr. Andrew Su has demonstrated
throughout the terms of his office to be independent by exercising independent judgment when a matter
is put before him for decision. In addition, he also has the necessary knowledge of the business and
operations of the Group and has the experience to make informed decision and participate actively and
contribute positively during deliberations or discussions at Board Meetings. The length of his service
on the Board does not in any way interfere with his exercise of independent judgment and ability to act
in the best interests of the Group. The Board has assessed and with the recommendation of the NC,
strongly recommend to the members of the Company to vote in favour of the resolution for Andrew Su
Meng Kit to continue to serve as Senior Independent Non-Executive Director of the Company.
Dato Hj Mohammad Mokhtar Bin Hj Hasan, the Independent Non-Executive Chairman of the Company
who has served on the Board since 1 March 2008. His term of office as an Independent Non-Executive
Director will be 9 years cumulatively by 28 February 2017, which is before the AGM to be held in
year 2017. In accordance with the Code, the tenure of an independent director should not exceed a
cumulative term of nine years. It is thus appropriate for the Company to recommend such retention upon
expiry of his tenure of nine years as Independent Non-Executive Director at this forthcoming AGM.
After having assessed the independence of Dato Hj Mohammad Mokhtar and also the Assessment
by the NC, regards him to be independent based amongst others, he has demonstrated throughout
the terms of his office to be independent by exercising independent judgment when a matter is put
before him for decision. Thus, he would be able to function as check and balance, provide broader
view and brings an element of objectivity to the Board. To that, the Board with the recommendation of
the NC, recommend Dato Hj Mohammad Mokhtar to continue to serve as Independent Non-Executive
Chairman of the Company.
Save for the aforesaid, the remaining 1 Independent Director of the Company served less than tenure
of nine (9) years in the Company.
Annual Repor t 2015
(647673-A)
23
(Continued)
3. REINFORCE INDEPENDENCE (continued)

3.4 Separation of roles of Chairman and Managing Director
The Company practises a division of responsibilities between the Independent Non-Executive Chairman
and the Managing Director. Their roles are separated and clearly defined to ensure a balance of power
and authority, increased accountability and greater capacity of the Board for independent decisionmaking. The Chairman is not related to the Managing Director. The Chairman is responsible for the
Boards effectiveness and conduct. He also promotes an open environment for debate and ensures
effective contributions from Non-Executive Directors. The Chairman also exercises control over the
quality, quantity and timeliness of information flow between the Board and Management. At a general
meeting, the Chairman plays a role in fostering constructive dialogue between shareholders, Board and
Management.
The Managing Director is in charge of the day-to-day operations of the business, making strategic
business decision and implementing Board policies.
3.5 Composition of the Board
During the financial year ended 31 December 2015, the Board was led by an Independent NonExecutive Chairman was made up of five (5) members comprising two (2) Executive Directors and three
(3) Independent Non-Executive Directors.
With effect from 1 January 2016, the present Board which is led by an Independent Non-Executive
Chairman is made up of five (5) members comprising one (1) Executive Director, one (1) Non-Executive
Non-Independent Director and three (3) Independent Non-Executive Directors.
There is a clear division of responsibilities between the Chairman and the Executive Director to ensure
that there is a balance of power and authority. The Chairman is primarily responsible for the orderly
conduct and working of the Board whilst the Executive Director who is also the Managing Director is
responsible for the day to day management of the business, implementing the policies and decisions of
the Board, and coordinating the development and implementation of business and corporate strategies.
The Non-Executive Directors contribute in areas such as policy and strategy, performance monitoring,
as well as improving governance and controls. The Non-Executive Directors are independent from
management and free of any relationship which could materially interfere with the exercise of their
independent judgment and objective participation and decision making process of the Board.
The profile of each of the members of the Board is set out in pages 12 to 13 this Annual Report.
4. FOSTER COMMITMENT
4.1 Time commitment
The Board is satisfied with the level of time commitment given by the Directors towards fulfilling their
roles and responsibilities as Directors of the Company. This is evidenced by the attendance record of
the Directors at Board meetings.
24
Annual Repor t 2015
(647673-A)
(Continued)
4. FOSTER COMMITMENT (continued)

4.1 Time commitment (continued)
The Board meets on a quarterly basis with additional meetings held whenever necessary. The Board
met four (4) times during the year under review. The meeting attendance record of the Directors is as
follows:
Name of Directors
Meeting Attendance
4/4
Ivan Sia Teck Fatt
4/4
Kuan Khian Leng
4/4
Andrew Su Meng Kit
4/4
Yee Teck Fah
4/4
To ensure that the Directors have the time to focus and fulfill their roles and responsibilities effectively
and in line with the Listing Requirements, a Director of the Company must not hold directorships of more
than five (5) Public Listed Companies and must be able to commit sufficient time to the Company.
The Directors are required to submit an update on their other directorships from time to time for
monitoring of the number of directorships held by the Directors of the Company and for notification to
Companies Commission of Malaysia accordingly.
4.2 Continuing education programmes
The Directors are mindful that they should continue to attend training programmes to enhance their
skills and knowledge where relevant, as well as to keep abreast with the changing regulatory and
corporate governance developments.
Save for Andrew Su Meng Kit whom was unable to attend any training during the year of 2015 due to
his tight schedule and travel commitments, the details of trainings attended by each Director for the
financial year ended 31 December 2015 were as follows:-
Name of Director
Mode of
Training
Yee Teck Fah
Seminar
Cooking The Books- The Malaysian Recipe on

Financial Fraud
1/2
Ivan Sia Teck Fatt
Seminar
Handling Press Conferences, Media Interviews

& Tricky Media Questions
1/2
Kuan Khian Leng
Seminar
1st ASEAN Construction Summit 2015

Towards Building A Sustainable Future
Dato Hj Mohammad
Mokhtar Bin Hj Hasan
Workshop
Leadership Excellence from the Chair
Workshop
Bringing the Best out in Boardrooms
1/2
Forum
Corporate Governance: Balancing Rules &

Practices
1/2
Course Title
No. of Day
Spent
Annual Repor t 2015
(647673-A)
25
(Continued)
5. UPHOLD INTEGRITY IN FINANCIAL REPORTING

5.1 Compliance with applicable financial reporting standards
In presenting the annual audited financial statements and quarterly announcements of results to
shareholders, the Board takes responsibility to present a balanced and meaningful assessment of the
Groups position and prospect and to ensure that the financial statements are drawn up in accordance
with the provisions of Companies Act, 1965 and applicable accounting standards in Malaysia. The
AC assists the Board in scrutinising information for disclosure to ensure accuracy, adequacy and
completeness. The Responsibility Statement by the Directors pursuant to Listing Requirements is set
out in page 32 of this Annual Report.
In addition to the above, the Company also undertook an independent assessment of the internal control
system and the AC has been assured that no material issue or major deficiency had been detected
which posed a high risk to the overall internal control under review.
In this regard, the main activities, amongst others, undertaken by the AC during the financial year are
detailed in page 28 of this Annual Report.
5.2 Assessment of suitability and independence of external auditors
The AC undertakes an annual assessment of the suitability and independence of the external auditors.
It is the policy of the AC to meet with the external auditors at least twice a year to discuss their audit
plan, audit findings and the Companys financial statements. At least one of these meetings is held
without the presence of the Executive Directors and the Management. The AC also meets with the
external auditors additionally whenever it deems necessary. Two discussion sessions between the
AC and the external auditors were held on 26 February 2015 and 27 August 2015 respectively. In
addition, the external auditors are invited to attend the AGM of the Company and are available to
answer shareholders questions on the conduct of the statutory audit and the preparation and contents
of their audit report.
The AC had obtained written assurance from its external auditors, Messrs. Baker Tilly Monteiro Heng,
confirmed that they are, and have been independent throughout the conduct of the audit engagement in
accordance with the terms of all relevant professional and regulatory requirements.
After having satisfied with the performance of Messrs. Baker Tilly Monteiro Heng (the adequacy of the
experience and resources of the firm, audit engagements, experienced supervisory and professional
staff assigned to the audit work, amongst others) and its audit independence, the AC recommended the
re-appointment of Messrs. Baker Tilly Monteiro Heng to the Board for approval by its shareholders at
the forthcoming 12th AGM.
6. RECOGNISE AND MANAGE RISK
6.1 Sound framework to manage risks
The Board oversees, reviews and monitors the operation, adequacy and effectiveness of the Groups
system of internal controls.
The risk management and internal control systems are designed to manage and mitigate rather than
eliminate the risk of failure in achieving the Companys corporate objective and safeguarding the
Companys assets as well as investors interests. In this regard, major internal control systems are
documented and followed by the management of the Group.
The Company continues to maintain and review its internal control procedures to ensure the protection
of its assets and its shareholders investment.
26
Annual Repor t 2015
(647673-A)
(Continued)
6. RECOGNISE AND MANAGE RISK (continued)

6.2 Internal audit function
The Company has outsourced its internal audit function to a professional services firm namely, Bridge
Corporate Advisory Sdn Bhd to assist the AC in discharging its duties and responsibilities in respect of
reviewing the adequacy and effectiveness of the Groups risk management and internal control systems.
The Statement on Internal Control as included in pages 33 to 34 of this Annual Report provides the overview
of the risk management and internal control framework adopted by the Group during the financial year
ended 31 December 2015.
7. ENSURE TIMELY AND HIGH QUALITY DISCLOSURE
7.1 Corporate disclosure policy
The Board is mindful on the importance of maintaining a proper corporate disclosure procedure with
the aim to provide shareholders and investors with comprehensive, accurate and quality information on
a timely basis. Personnel and working team for preparing the disclosure will conduct due diligence and
proper verification, as well as coordinate the efficient disclosure of material information to the investing
public.
The Company has put in place an internal control policy on confidentiality to ensure that confidential
information is handled properly by Directors, employees and relevant parties to avoid leakage and
improper use of such information.
The Company has also conducts internal training and briefing to the employees (those with access to
the confidential information) from time to time to enhance the awareness of employees on corporate
disclosure requirements and to keep them abreast on the updates of the same.
7.2 Leverage on information technology for effective dissemination of information
The Companys website incorporates an Investor Relations (IR) section which provides all relevant
information on the Group and is accessible by the public. This section enhances the IR function by
including all announcements made by the Company, annual reports, board charter and the corporate
and governance structure of the Company.
The Company will enhance the disclosures on its website for broader and effective dissemination of
information to its stakeholders from time to time.
8. STRENGTHEN RELATIONSHIP BETWEEN COMPANY AND SHAREHOLDERS
8.1 Encourage shareholders participation at general meetings
The Company dispatches its notice of AGM to shareholders more than twenty-one (21) days before
the AGM, in advance of the notice period as required under the Companies Act, 1965 and Listing
Requirements. The additional time given to shareholders allows them to make necessary arrangements
to attend and participate either in person, by corporate representative, by proxy or by attorney.
The Company allows a member to appoint a proxy who may but need not be a member of the Company.
The Company has also removed the limit on the number of proxies to be appointed by an exempt
authorised nominee with shares in the Company for Omnibus account to allow greater participation of
beneficial owners of shares at general meetings of the Company. The AA of the Company has further
accord proxies the same rights as members to speak at the general meeting. Essentially, a corporate
representative, proxy or attorney is entitled to attend, speak and vote both on a show of hands and on
a poll as if they were a member of the Company.
Annual Repor t 2015
(647673-A)
27
(Continued)
8. STRENGTHEN RELATIONSHIP BETWEEN COMPANY AND SHAREHOLDERS (continued)

8.1 Encourage shareholders participation at general meetings (continued)
In addition to the above, time will be allocated during AGM for dialogue with shareholders to address
issues concerning the Group.
The Board will consider adopting electronic voting to facilitate greater shareholder participation at
general meetings, and to ensure accurate and efficient outcomes of the voting process.
8.2 Encourage poll voting
At the 11th AGM of the Company held on 25 June 2015, no substantive resolutions were put forth for
shareholders approval, as such, the resolutions were voted on by a show of hands.
8.3 Effective communication and proactive engagement
From the Companys perspective, the AGM also serves as a forum for Directors and Management to
engage with the shareholders personally to understand their needs and seek their feedback. The Board
welcomes questions and feedback from shareholders during and at the end of shareholders meeting
and ensures their queries are responded in a proper and systematic manner.
In compliance with the recommended best practice by the Code, the Board has appointed Andrew Su
Meng Kit as Senior Independent Non-Executive Director to whom minority shareholders could convey
their concern over the operations of the Group. His contact information is as follows:
Address :

Contact number :
Fax Number :
L-05-01, No.2 Jalan Solaris,

Solaris Mont Kiara,
03- 6203 7771
03- 6203 7772
This statement was made in accordance with a Board of Directors Resolution dated 13 April 2016.
28
Annual Repor t 2015
(647673-A)
AUDIT COMMITTEE REPORT

COMPOSITION AND ATTENDANCE AT MEETINGS
The composition of the Audit Committee and their respective attendance record of meetings for the financial year
ended 31 December 2015 are as follows:Name
Designation
Date of
Appointment
Date of
Resignation
Meeting
Attendance
Andrew Su Meng Kit
Chairman
Senior Independent
Non-Executive Director
25 Apr 2007
4/4
Dato Hj Mohammad Member

Mokhtar Bin Hj Hasan Independent Non-Executive Director
1 Mar 2008
4/4
Yee Teck Fah
1 Sept 2011
4/4
Member
Independent Non-Executive Director
SUMMARY OF ACTIVITIES DURING THE FINANCIAL YEAR

The main activities undertaken by the Audit Committee during the financial year are as follows:
(a) Reviewed the external auditors scope of work and audit plans for the year;
(b) Reviewed with the external auditors the approved accounting standards applicable to the financial statements
of the Company and of the Group;
(c) Reviewed with the external auditors the results of the audit, the audit report and the accounting matters
including managements response, where applicable;
(d) Considered and recommended the auditors remuneration for approval of the Board;
(e) Reviewed the internal audit plan for the financial year and assessed the performance of the internal audit
function;
(f) Reviewed the internal audit reports, which highlighted the audit issues, recommendations and managements
response and ensured that material findings are adequately addressed and attended to by management;
(g) Reviewed with the Managing Director and the Executive Directors, the annual financial statements, interim
financial results before recommending to the Board for approval, focusing particularly on;
any changes in or implementation of any accounting policies and practices; significant adjustments and
unusual events arising from the audit;
going concern assumptions; and
compliance with accounting standards and other legal requirements;
(h) Reviewed any related party transactions and conflict of interest situations entered into by the Group.
TERMS OF REFERENCE OF THE COMMITTEE
The Terms of Reference of the Audit Committee are set out below:Composition of the Audit Committee
The Audit Committee shall be appointed by the Board from amongst the Non-Executive Directors of the Company
and shall consist of not fewer than 3 members of whom:(a) majority of the Audit Committee must be Independent Directors;
(b) are financially literate and at least one member of the Audit Committee;
must be a member of the Malaysian Institute of Accountants; or
if he is not a member of the Malaysian Institute of Accountants, he must have at least 3 years working
experience and:
Annual Repor t 2015
(647673-A)
29
AUDIT COMMITTEE REPORT (Continued)

TERMS OF REFERENCE OF THE COMMITTEE (continued)
Composition of the Audit Committee (continued)
o
he must have passed the examinations specified in Part I of the 1st Schedule of the Accountants
Act 1967; or
o he must be a member of one of the association of accountants specified in Part II of the 1st
Schedule of the Accountants Act 1967; or
fulfils such other requirements as prescribed or approved by the Bursa Securities from time to time.
No alternate director shall be appointed as a member of the Audit Committee.

If a member of the Audit Committee resigns, passes away or for any other reason ceases to be a member
resulting in the number of Independent Directors comprising less than the majority of the members or the
members is reduced to below three (3), the Board of Directors shall, within three (3) months of that event, appoint
such number of new members as may be required to comply with the requirement that the Independent Directors
constitute a majority or to make up the minimum number of three (3) members as the case may be.
The Board shall review the terms of office and the performance of the Audit Committee and its members at least
once every three (3) years.
Chairman
The members of an Audit Committee shall elect a Chairman from amongst their number who shall be an
Independent Director. In the absence of the Chairman elected, the Audit Committee shall be chaired by any of
the Independent Directors.
Quorum and Attendance
In order to constitute a quorum, the majority of members present at an Audit Committee meeting must be
Independent Directors. The Chairman of the committee may request that the Managing Director, Executive
Director, members of the management, the Internal Auditors and representatives of the External Auditors be
present at the meetings of the Committee.
Meetings
The Committee shall hold meetings on no fewer than four (4) occasions a year, although additional meetings may
be called, as and when necessary by the Chairman of the Committee. These meetings will usually be:

Prior to the announcement of the quarterly results;

Prior to the meeting of the full Board to approve the financial statements for the current year; and
Upon request of any member of the Committee or the External Auditors/Internal Auditors whereby the
Chairman of the Committee shall convene a meeting of the Committee to deliberate matters brought up by
the External Auditors/Internal Auditors.
In addition to the above, the Audit Committee shall meet with the External/Internal Auditors without the Executive
Board members or members of the management or employees present, whenever deemed necessary.
Secretary and Minutes of Meeting
The Company Secretary shall be the secretary to the Audit Committee and shall be present at all meetings to
record minutes. Minutes of each meeting shall be prepared and entered into the books of the Company provided
for the purpose and sent to the Audit Committee members and shall be made available to all Board members.
The minutes shall be signed by the Chairman of the Audit Committee.
30
Annual Repor t 2015
(647673-A)

Authority
The Audit Committee shall:

have the authority to investigation any matter within its terms of reference;
have the resources which are required to perform its duties;
have full and unrestricted access to any information pertaining to the Company;
have direct communication channels with the External Auditors and person(s) carrying out the internal audit
function or activity (if any);
be able to obtain independent professional or other advice; and
be able to convene meetings with the External/Internal Auditors, excluding the attendance of the Executive
Board members or members of the management or employees, whenever deemed necessary.
Responsibilities of the Audit Committee

The responsibilities of the Audit Committee are:

to serve as a focal point for communication between non-audit committee directors, the External Auditors,
Internal Auditors and the Management;
to assist the Board in fulfilling its fiduciary responsibilities as to accounting policies and reporting practices
of the Group and the sufficiency of auditing relative thereto; and
to assist the Board in assuring the independence of the Companys External Auditors, the integrity of
Management, the adequacy of disclosures to shareholders, and the adequacy of internal controls.
Duties and Functions of the Audit Committee

The function of the Audit Committee should include the following:
(a) to consider the appointment of the External Auditors, the audit fee and any questions of resignation or
dismissal;
(b) to discuss with the External Auditors before the audit commences, the nature and scope of the audit and
ensures coordination where more than one audit firm is involved;
(c) to discuss with the External Auditors, their evaluation of the system of internal control;
(d) to discuss with the External Auditors, their audit report;
(e) to review the quarterly results and annual financial statements, prior to the approval by the Board, focusing
particularly on:
any changes in or implementation of any accounting policies and practices;
significant adjustments and unusual events arising from the audit;
going concern assumptions; and
compliance with accounting standards and other legal requirements.
(f) to discuss problems and reservations arising from the interim and final audits, and any matters the External/
Internal Auditors may wish to discuss (in the absence of Management where necessary);
(g) to review with the External Auditors, their management letter and managements response;
(h) to do the following in relation to the internal audit functions:
to review the adequacy of the scope, functions, competency and resources of the internal audits
functions, and that it has the necessary authority to carry out its work;
to review the internal audit programme, processes, the results of the internal audit programme,
processes or investigation undertaken and where necessary, ensure that appropriate action is taken on
the recommendations of the internal audit function;
to review any appraisal or assessment of the performance of members (or the audit firm as the case
may be) of the internal audit function;
to approve any appointment or termination of senior staff members (or the audit firm as the case may
be) of the internal audit function; and
to note resignation of internal audit staff members (or the audit firm as the case may be) and provide the
resigning staff member (or the audit firm as the case may be) an opportunity to submit his reasons for
resigning.
Annual Repor t 2015
(647673-A)
31

Duties and Functions of the Audit Committee (continued)
(i) to consider any related party transaction and conflict of interest situations that may arise within the Company
or Group including any transaction, procedure or course of conduct that raises questions of Management
integrity;
(j) to consider the major findings of internal investigation and managements response; and
(k) to consider other topics as defined by the Board.
INTERNAL AUDIT FUNCTION
The internal audit function of the Group has been outsourced to Bridge Corporate Advisory Sdn Bhd, a
professional services provider with effect from April 2007. Further information on the Internal Audit Function is
disclosed in the Statement on Internal Control set out in page 33 of this Annual Report.
This Statement was made in accordance with a Board of Directors Resolution dated 13 April 2016.
32
Annual Repor t 2015
(647673-A)
STATEMENT OF DIRECTORS RESPONSIBILITIES

The Directors are required by the Companies Act, 1965, to ensure that the financial statements prepared for
each financial year have been made in accordance with applicable approved accounting standards and give a
true and fair view of the state of affairs of the Group and Company at the end of the financial year and to the
results and cash flows of the Group and the Company for the financial year.
The Directors are responsible for ensuring that the Group and the Company maintain accounting records which
disclose with reasonable accuracy the financial position of the Group and of the Company, which enable them to
ensure that the financial statements comply with the provisions of the Companies Act, 1965.
In preparing the financial statements, the Directors have considered the following:

That the Group and Company have applied appropriate accounting policies consistently;
That reasonable and prudent judgments and estimates were made;
That all applicable approved accounting standards have been adhered to; and
That the preparation of the financial statements is on a going concern basis as the Directors have a
reasonable expectation, having made enquiries, that the Group and Company have adequate resources to
continue in operations for the foreseeable future
Annual Repor t 2015
(647673-A)
33
STATEMENT ON INTERNAL CONTROL
Pursuant to Rule 15.26(b) of the Bursa Malaysia Securities Berhad ACE Market Listing
Requirements
Introduction
The Board of Directors (Board) of Mexter Technology Berhad is pleased to present its Statement on Internal
Control for the financial year ended 31 December 2015, which had been prepared in accordance with the
Statement on Risk Management & Internal Control Guidelines for Directors of Listed Issuers issued by the
Institute of Internal Auditors Malaysia.
Boards Responsibility
The Board is responsible for the Groups internal control and risk management system to safeguard shareholders
investment and the Groups assets as well as reviewing the adequacy and effectiveness of the said system.
In view of the limitations inherent in any system of risk management and internal control, the system is designed
to manage, rather than eliminate, the risk of failure to achieve the Groups business and corporate objectives.
The system can therefore only provide reasonable, but not absolute assurance, against material misstatement
or loss.
The Group has an on-going process for identifying, evaluating and managing the significant risks it faces. The
Board regularly reviews the results of this process, including measures taken by Management to address areas
of key risks as identified. This process has been in place for the financial year under review and up to the date
of approval of this Statement.
Risk Management
The Board also recognises that risk management should be an integral part of the business operation.
On a day-to-day basis, respective Heads of Departments are responsible for managing risks related to their
functions or departments. Monthly and weekly management meetings are held to ensure that the risks faced
by the Group are monitored and properly addressed. It is at these meetings that key risks and corresponding
controls implemented are communicated amongst the senior management team. Significant risks identified
are subsequently brought to the attention of the Board at their scheduled meetings. The abovementioned risk
management practices of the Group is an on-going process of identifying, evaluating and managing significant
risks that may affect the Groups achievement of its corporate objectives.
Internal Audit Function
The Audit Committee evaluates the internal audit function to assess its effectiveness in the discharge of its
responsibilities. The Groups internal audit function is outsourced to a professional services firm to assist the
Board and Audit Committee in providing independent assessment on the adequacy, efficiency and effectiveness
of the Groups internal control systems. The Group internal audit function reports directly to the Audit Committee.
During the financial year ended 31 December 2015, audits were carried out in accordance to the internal audit plan
that has been reviewed and approved by the Audit Committee. Observations from these audits are presented,
together with Managements response and proposed action plans, to the Audit Committee for its review. The
internal audit function also follows up and reports to the Audit Committee on the status of implementation of
action plans by Management on the recommendations highlighted in the internal audit reports. Further details of
the activities of the internal audit function are provided in the Audit Committee Report.
The total fees incurred for the outsourcing of the Internal Audit function for the financial year ended 31 December
2015 was RM43,000.
34
Annual Repor t 2015
(647673-A)
STATEMENT ON INTERNAL CONTROL (Continued)

Other Key Elements of Internal Control
The key elements of the Groups internal control system are described below:

Limits of authority and responsibility

Clearly defined and documented lines and limits of authority, responsibility and accountability have been
established through the relevant charters/terms of reference, organizational structures and appropriate
authority limits.
Written policies and procedures

Clearly defined internal policies and procedures as set out in the Groups Standard Operating Procedures
Manual are regularly updated to reflect changing risks or to address operational deficiencies.
Planning, monitoring and reporting

o
The Audit Committee reviews the Groups quarterly financial performance, together with Management,
which is subsequently reported to the Board;
Comprehensive information, which includes the monthly management reports covering all key financial
and operational indicators, is provided to Senior Management for the monitoring of performance against
strategic plan; and
Related Party Transactions

Related party transactions (if any) are disclosed, reviewed, and monitored by the Audit Committee and
Board on a periodic basis.
Assurance provided by the Group Managing Director and Group Financial Controller
In line with the Guidelines, the Group Managing Director and Group Financial Controller have provided assurance
to the Board in writing stating that the Groups risk management and internal control systems have operated
adequately and effectively, in all material aspects, to meet the Groups objectives during the financial year under
review.
The Board is of the view that the risk management and internal control systems are satisfactory and have
not resulted in any material losses, contingencies or uncertainties that would require disclosure in the Groups
annual report. The Board continues to take pertinent measures to sustain and, where required, to improve the
Groups risk management and internal control systems in meeting the Groups strategic objectives.
This statement has been reviewed by the external auditors in compliance with Rule 15.23 of the Listing
Requirements and pursuant to the scope set out in the Recommended Practice Guide (RPG) 5 issued by the
Malaysian Institute of Accountants for inclusion in the annual report of the Group for the financial year ended
31 December 2015, and has reported to the Board that nothing has come to their attention that cause them to
believe that the statement is inconsistent with their understanding of the process the Board has adopted in the
review of the adequacy and effectiveness of the risk management and internal control systems within the Group.
Annual Repor t 2015
(647673-A)
35
ADDITIONAL COMPLIANCE INFORMATION

Utilisation of proceeds
On 20 August 2014, the Company raised approximately RM1,996,568.64 via the issuance of 17,890,400 new
Ordinary Shares of RM0.1116 each pursuant to the Private Placement. As at 31 December 2015, the gross
proceeds are used by the Group in the following manner:

Purpose
Proposed Actual
Utilisation
Utilisation
Balance
Time frame
RM000
RM000
RM000
for use
i. Working capital
ii. Share issue expenses
1,957
40
(1,703)
(36)
254
4
Total
1,997
(1,739)
258
Within 3 months
Upon completion
Share buy-back
The Company did not enter into any share buy-back transaction during the financial year under review.
EMPLOYEE SHARE SCHEME
There was no Employee Share Scheme implemented by the Company during the financial year.
OPTIONS, WARRANTS AND CONVERTIBLE SECURITIES
None of the 89,452,020 Warrants issued pursuant to the Rights Issue with Warrants (Warrants 2013/2018)
which were listed and quoted on the ACE Market of Bursa Malaysia Securities Berhad on 25 September 2013
were exercised during the financial year under review. As at 31 December 2015, the total number of Warrants
2013/2018 in issue is 89,452,020.
American Depository Receipt (ADR) or Global Depository Receipt (GDR Programme)
The Company did not sponsor any ADR or GDR programme during the financial year under review.
Imposition of Sanctions and/or Penalties
There were no material sanctions and/or penalties imposed on the Company and its subsidiaries, directors or
management by the relevant regulatory bodies during the financial year under review.
Non-Audit Fees
The amount of non-audit fees paid to the external auditors or corporation affiliated to the auditors firm by the
Group during the financial year was approximately RM8,000.
Profit estimate, FORECAST or projection and unaudited results variation
There was no profit forecast issued by the Company in respect of the financial year ended 31 December 2015.
The audited consolidated results for the financial year ended 31 December 2015 did not deviate by more than
10% of the unaudited consolidated results previously announced by the Company.
Profit guarantee
No profit guarantee had been given or received by the Company in respect of the financial year under review.
36
Annual Repor t 2015
(647673-A)
ADDITIONAL COMPLIANCE INFORMATION
(Continued)
Material Contracts
There were no material contracts entered into by the Company and its subsidiaries involving Directors and major
shareholders.
Material Contracts relating to loans
There were no material contracts relating to loan entered into by the Company and its subsidiaries involving
Directors and major shareholders.
Corporate social responsibility (CSR) activities
The Group is committed to CSR activities towards the community and its employees. Whilst the Group does
not yet have any formal CSR activities, the Group does from time to time provide financial aid in the form of
donations to schools and deserving members of the society.
REPORTS AND FINANCIAL STATEMENTS FOR THE

FINANCIAL YEAR ENDED 31ST DECEMBER 2015
DIRECTORS REPORT
38
FINANCIAL STATEMENTS
STATEMENTS OF FINANCIAL POSITION
42
STATEMENTS OF COMPREHENSIVE INCOME
43
STATEMENTS OF CHANGES IN EQUITY
44
STATEMENTS OF CASH FLOWS
47
NOTES TO THE FINANCIAL STATEMENTS
49
SUPPLEMENTARY INFORMATION ON THE DISCLOSURE

OF REALISED AND UNREALISED PROFITS OR LOSSES
107
STATEMENT BY DIRECTORS
108
STATUTORY DECLARATION
109
INDEPENDENT AUDITORS REPORT
110
38
Annual Report 2015
(647673-A)
DIRECTORS REPORT
DIRECTORS REPORT
The Directors hereby submit their report together with the audited financial statements of the Group and of the
Company for the financial year ended 31st December 2015.
PRINCIPAL ACTIVITIES
The Company is principally engaged in investment holding whilst the principal activities of the subsidiaries are
disclosed in Note 8 to the financial statements. There have been no significant changes in the nature of these
principal activities during the financial year.
RESULTS

Group
RM000
Company
RM000
Net loss for the financial year

Other comprehensive income, net of tax
(2,138)
1,586
(6,844)
-
Total comprehensive expense for the financial year
(552)
(6,844)
(412)
(140)
(6,844)
-
(552)
(6,844)
Attributable to:Owners of the Company

Non-controlling interests

DIVIDEND
No dividend was paid or declared by the Company since the end of the previous financial year.
The Directors do not recommend the payment of any dividends in respect of the financial year ended 31st
December 2015.
RESERVES AND PROVISIONS
All material transfers to and from reserves and provisions during the financial year have been disclosed in the
financial statements.
BAD AND DOUBTFUL DEBTS
Before the statements of comprehensive income and statements of financial position of the Group and of the
Company were made out, the Directors took reasonable steps to ascertain that action had been taken in relation
to the writing off of bad debts and the making of allowance for impairment losses on receivables, and had
satisfied themselves that all known bad debts had been written off and adequate allowance had been made for
impairment losses on receivables.
At the date of this report, the Directors are not aware of any circumstances that would render the amount written
off for bad debts, or the amount of the allowance for impairment losses on receivables, in the financial statements
of the Group and of the Company inadequate to any substantial extent.
CURRENT ASSETS
Before the statements of comprehensive income and statements of financial position of the Group and of the
Company were made out, the Directors took reasonable steps to ensure that any current assets, other than debts,
which were unlikely to be realised in the ordinary course of business, their values as shown in the accounting
records of the Group and of the Company had been written down to an amount that they might be expected to
be realised.
At the date of this report, the Directors are not aware of any circumstances that would render the values attributed
to the current assets in the financial statements of the Group and of the Company misleading.
Annual Report 2015
(647673-A)
39
DIRECTORS REPORT (Continued)

VALUATION METHODS
At the date of this report, the Directors are not aware of any circumstances which have arisen which render
adherence to the existing methods of valuation of assets or liabilities of the Group and of the Company misleading
or inappropriate.
CONTINGENT AND OTHER LIABILITIES
At the date of this report, there does not exist:(i) any charge on the assets of the Group and of the Company that has arisen since the end of the financial year
which secures the liabilities of any other person, or
(ii) any contingent liabilities in respect of the Group and of the Company that has arisen since the end of the
financial year.
In the opinion of the Directors, no contingent liabilities or other liabilities of the Group and of the Company has
become enforceable, or is likely to become enforceable within the period of twelve months after the end of the
financial year which, will or may substantially affect the ability of the Group and of the Company to meet their
obligations as and when they fall due.
CHANGE OF CIRCUMSTANCES
At the date of this report, the Directors are not aware of any circumstances, not otherwise dealt with in this report
or the financial statements of the Group and of the Company that would render any amount stated in the financial
statements misleading.
ITEMS OF AN UNUSUAL NATURE
The results of the operations of the Group and of the Company for the financial year were not, in the opinion of
the Directors, substantially affected by any item, transaction or event of a material and unusual nature.
No item, transaction or event of a material and unusual nature has arisen in the interval between the end of the
financial year and the date of this report which is likely to affect substantially the results of the operations of the
Group and of the Company for the financial year in which this report is made.
ISSUE OF SHARES AND DEBENTURES
During the financial year, no new issue of shares or debentures were made by the Company.
WARRANTS
Warrants 2013/2018
No Warrants 2013/2018 were exercised during the financial year.
Details of the warrants are disclosed in Note 16 to the financial statements.
DIRECTORS
The Directors in office since the date of the last report are:Dato Hj Mohammad Mokhtar Bin Hj Hasan
Ivan Sia Teck Fatt
Andrew Su Meng Kit
Kuan Khian Leng
Yee Teck Fah
40
Annual Report 2015
(647673-A)

DIRECTORS INTERESTS
According to the register of directors shareholdings kept by the Company under Section 134 of the Companies
Act, 1965 in Malaysia, the interests of those Directors who held office at the end of the financial year in shares in
the Company and its related corporations during the financial year ended 31st December 2015 are as follows:

Number of shares of RM0.10 each

At
At
1.1.2015
Bought
Sold 31.12.2015
The Company
Ivan Sia Teck Fatt
Kuan Khian Leng

41,479,367
51,554,100
-
-
20,265,900
-
21,213,467
51,554,100
Number of shares of SGD1/- each

At
At
1.1.2015
Bought
Sold 31.12.2015
The subsidiary
Ivan Sia Teck Fatt
- indirect
100,000
Number of warrants 2013/2018

At
1.1.2015
Bought
Sold
100,000
At
31.12.2015
The Company
Ivan Sia Teck Fatt
By virtue of their interests in the shares of the Company, Ivan Sia Teck Fatt and Kuan Khian Leng are also
deemed interested in the shares of all the subsidiaries to the extent the Company has an interest.
Other than as disclosed above, none of the Directors in office at the end of the financial year had any interest in
shares of the Company and its related corporations during the financial year.
DIRECTORS BENEFITS
Since the end of the previous financial year, no Director of the Company has received or become entitled to
receive a benefit (other than benefits included in the aggregate amount of emoluments received or due and
receivable by the Directors shown in the financial statements) by reason of a contract made by the Company or a
related corporation with the Director or with a firm of which the Director is a member, or with a company in which
the Director has a substantial financial interest.
Neither during nor at the end of the financial year was the Company a party to any arrangement whose object
was to enable the Directors to acquire benefits by means of the acquisition of shares in, or debentures of, the
Company or any other body corporate.
Annual Report 2015
(647673-A)

AUDITORS
The auditors, Messrs Baker Tilly Monteiro Heng, have expressed their willingness to continue in office.
On behalf of the Board,
........................................................
IVAN SIA TECK FATT
Managing Director
........................................................
KUAN KHIAN LENG
Director
Kuala Lumpur
Date: 13 April 2016
41
42
Annual Report 2015
(647673-A)
STATEMENTS OF FINANCIAL POSITION

AS AT 31ST DECEMBER 2015
Group
Company

2015
2014
2015
2014

Note
RM000
RM000
RM000
RM000
ASSETS
Non-current assets
Investment property
Intangible assets
Investment in subsidiaries
Goodwill on consolidation
5
6
7
8
9
4,705
866
78
-
817
4,336
-
140
-
824
-
-
-
2,452
-
3,858
-
Total non-current assets
6,466
5,300
2,452
3,858
10
11
12
13
14
456
833
11,270
-
7,834
1,835
1,572
8,412
-
10,030
225
-
2
6,341
33
217
22
11,275
510
Total current assets
20,393
21,849
6,601
12,024
TOTAL ASSETS
26,859
27,149
9,053
15,882
EQUITY AND LIABILITIES

Equity attributable to owners
of the Company
Share capital
15
Share premium
Warrants reserve
16
Other reserves
17
Accumulated losses
19,679
8,897
5,385
1,557
(24,910)
19,679
8,897
5,385
(29)
(22,912)
19,679
8,897
5,385
-
(24,981)
19,679
8,897
5,385
(18,137)
Shareholders funds
10,608
385
11,020
529
8,980
-
15,824
-
Total equity
10,993
11,549
8,980
15,824
Current assets
Other investments
Inventories
Trade and other receivables
Amount due from subsidiaries
Cash and bank balances
Non-current liabilities
Borrowings
18
2,077
2,293
-
Deferred taxation
19
351
3
-
Total non-current liabilities
2,428
2,296
Current liabilities

Trade and other payables
20
12,953
12,879
43
58
Amount due to subsidiaries
13
-
-
30
Deferred income
21
131
254
-
Borrowings
18
116
171
-
Provision for taxation
238
-
-
Total current liabilities
13,438
13,304
73
58
Total liabilities
15,866
15,600
73
58
TOTAL EQUITY AND LIABILTIES
26,859
27,149
9,053
15,882
The accompanying notes form an integral part of these financial statements.
Annual Report 2015
(647673-A)
43
STATEMENTS OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2015
Group
Company

2015
2014
2015
2014

Note
RM000
RM000
RM000
RM000
Revenue
22
39,524
43,193
Cost of sales and services
23
(32,508)
(34,960)
Gross profit
7,016
8,233
Other income
Selling and distribution expenses
Administrative expenses
Other operating expenses
808
(677)
(8,145)
(552)
806
(821)
(8,846)
(230)
-
-
(318)
(6,534)
(326)
(822)
Operating loss
24
(1,550)
(858)
(6,852)
(1,148)
Finance costs, net
25
(91)
(56)
Loss before taxation
(1,641)
(914)
26
(497)
(349)
(2,138)
(1,263)
Other comprehensive income,

net of tax
Items that will not be
reclassified subsequently
to profit or loss
Surplus on revaluation of
property, plant and equipment
1,270
Items that are or may be

reclassified subsequently
to profit or loss
Foreign currency translation
differences for foreign operations
316
Other comprehensive income

for the financial year
1,586
Taxation
8
(6,844)
-
(6,844)
18
(1,130)
(1,130)
(76)
(76)
Total comprehensive expense

(552)
(1,339)
(6,844)
(1,130)
Loss attributable to:

Owners of the Company
(1,998)
(140)
(1,204)
(59)
(6,844)
-
(1,130)
-
(2,138)
(1,263)
(6,844)
(1,130)

attributable to:
Owners of the Company

(412)
(140)
(1,280)
(59)
(6,844)
-
(1,130)
-
(552)
(1,339)
(6,844)
(1,130)
Losses per share (sen)

27
- basic
- diluted
(1.02)
(1.02)
(0.65)
(0.65)

17,890
8,726
5,385
47
(21,708)
10,340
588
10,928
Total other comprehensive

expense, net of tax
Loss after taxation
1,789
1,789
19,679
15
Total transactions with

owners
At 31st December 2014
Issuance of shares
Transaction with owners:
8,897
171
171
5,385
(29)
(76)
(76)
(22,912)
(1,204)
11,020
1,960
1,960
(1,204)
(76)
(76)
529
(59)
11,549
1,960
1,960
(1,263)
(76)
(76)
Annual Report 2015
Foreign currency
translation differences for
foreign operations
Other comprehensive
expense, net of tax
At 1st January 2014

Attributable to owners of the Company

Non-distributable
Distributable

Equity

attributable

to owners
Non-

Share
Share Warrants
Other
Accumulated
of the
controlling
Total

capital premium reserve reserves
losses Company interests
equity
Group Note RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2015
44
(647673-A)
19,679
8,897
5,385
(29)
(22,912)
11,020
529
11,549
-
-
19,679
Total other comprehensive

expense, net of tax


Disposal of subsidiaries
Total transactions with owners

8,897
5,385
1,557
1,586
1,586
1,586
316
(348)
1,618
(24,910)
(1,998)
(1,998)
10,608
(412)
(1,998)
1,586
1,586
316
(348)
1,618
385
(4)
(4)
(140)
(140)
10,993
(4)
(4)
(552)
(2,138)
1,586
1,586
316
(348)
1,618
Annual Report 2015
Surplus on revaluation
of property, plant and
equipment
Deferred taxation liabilities
on revaluation surplus
of property, plant and
equipment
differences for foreign
operations
Other comprehensive
income, net of tax
At 1st January 2015

Attributable to owners of the Company

Non-distributable
Distributable

Equity

attributable

to owners
Non-

Share
Share Warrants
Other
Accumulated
of the
controlling
Total

capital premium reserve reserves
losses Company interests
equity
Group Note RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2015 (Continued)

(647673-A)
45
46
Annual Report 2015
(647673-A)
STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2015 (Continued)

Share
Share Warrants
Accumulated
Total

capital premium
reserve
losses
equity
Company Note RM000 RM000 RM000 RM000 RM000
At 1st January 2014

17,890
8,726
5,385
(17,007)
14,994

Total comprehensive
expense for the
financial year
-
-
-
(1,130)
(1,130)

Issuance of shares
15
1,789
171
-
-
1,960

Total transactions
with owners

1,789
171
-
-
1,960

19,679
8,897
5,385
(18,137)
15,824

Total comprehensive
expense for the
financial year
-
-
-
(6,844)
(6,844)

19,679
8,897
5,385
(24,981)
8,980
Annual Report 2015
(647673-A)
47
FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2015

Group
Company

2015
2014
2015
2014

Note
RM000
RM000
RM000
RM000
CASH FLOWS FROM
OPERATING ACTIVITIES:

(1,641)
(914)
(6,844)
(1,130)

Adjustments for:
Bad debts recovered
(5)
-
-
Bad debts written off
8
36
31
10
Depreciation of property,
plant and equipment
344
445
-
Depreciation of investment
property
18
-
-
Amortisation on intangible assets
64
63
-
Fair value gain on other
investments
(1)
(3)
-
Write-down of inventories to net
realisable value
105
-
-
Reversal of write-down of
inventories
(31)
(152)
-
Impairment loss on:
- investment in subsidiaries
-
-
1,406
812
- amount due from subsidiaries
-
-
5,097
Interest expense
119
130
-
Interest income

(28)
(74)
(8)
(18)
Loss on dissolution of
subsidiaries
3
-
-
Net loss/(gain) on disposal of
47
(273)
-
written off

24
21
-
-
Unrealised loss/(gain) on foreign
exchange, net

204
(195)
-

(770)
(916)
(318)
(326)

Changes in working capital:
Inventories

665
(791)
-
Payables

74
4,550
(15)
2
Receivables

(3,065)
(3,487)
(11)
(5)
Deferred income
(123)
(121)
-

(3,219)
(765)
(344)
(329)

Tax paid

(259)
(349)
-
-

Net cashflows used in
operating activities
(3,478)
(1,114)
(344)
(329)

48
Annual Report 2015
(647673-A)
FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2015 (Continued)

Group
Company

2015
2014
2015
2014

Note
RM000
RM000
RM000
RM000
CASH FLOWS FROM
INVESTING ACTIVITIES:

Interest received
28
74
8
18
Investment in subsidiaries
-
-
-
(100)
Proceeds from disposal of
182
534
-
Purchase of intangible assets
(2)
(10)
-
Purchase of property, plant
and equipment
28
(232)
(318)
-

Net cashflows (used in)/from
investing activities
(24)
280
8
(82)

CASH FLOWS FROM
FINANCING ACTIVITIES:
Proceeds from issuance
of shares

-
1,960
-
1,960
Interest paid

(119)
(130)
-
Advances to subsidiaries
-
-
(133)
(4,609)
Repayment of term loan
(101)
(200)
-
Repayment of hire purchase
liabilities

(170)
(67)
-
Net withdrawal of investment
in unit trust

1,380
2,879
(8)
1,982

Net cashflows from/(used in)
financing activities
990
4,442
(141)
(667)

NET CHANGE IN CASH
AND CASH EQUIVALENTS
(2,512)
3,608
(477)
(1,078)
EFFECT OF EXCHANGE
DIFFERENCES ON
TRANSLATION
316
(76)
-

CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF THE
FINANCIAL YEAR
10,030
6,498
510
1,588

CASH AND CASH EQUIVALENTS
AT THE END OF THE
FINANCIAL YEAR
7,834
10,030
33
510
Annual Report 2015
(647673-A)
49

1. CORPORATION INFORMATION

The Company is principally engaged in investment holding whilst the principal activities of the subsidiaries
are stated in Note 8 to the financial statements. There have been no significant change in the nature of these
principal activities during the financial year.
The Company is a public limited liability company, incorporated and domiciled in Malaysia and listed on ACE
market of the Bursa Malaysia Securities Berhad.
The registered office and principal place of business of the Company are located at L-05-01, No. 2 Jalan
Solaris, Solaris Mont Kiara, 50480 Kuala Lumpur.
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution
of the Directors on 13 April 2016.
.
2. BASIS OF PREPARATION
2.1 Statement of Compliance

The financial statements of the Group and of the Company have been prepared in accordance with the
Malaysian Financial Reporting Standards (MFRSs), International Financial Reporting Standards and
the requirements of the Companies Act, 1965 in Malaysia.
2.2 Adoption of amendments/improvements to MFRSs

The Group and the Company have adopted the following amendments/improvements to MFRSs that
are mandatory for the current financial year:
Amendments/Improvements to MFRSs
MFRS 1
MFRS 2
MFRS 3
MFRS 8
MFRS 13
MFRS 116
MFRS 119
MFRS 124
MFRS 138
MFRS 140
First-time Adoption of Malaysian Financial Reporting Standards

Share-based Payment
Business Combinations
Operating Segments
Fair Value Measurement
Property, Plant and Equipment
Employee Benefits
Related Party Disclosures
Intangible Assets
Investment Property
The adoption of the above amendments/improvements to MFRSs did not have any significant effect on
the financial statements of the Group and of the Company, and did not result in significant changes to
the Groups and the Companys existing accounting policies, except for those as discussed below:
Amendments to MFRS 8 Operating Segments
Amendments to MFRS 8 require an entity to disclose the judgements made by management in applying
the aggregation criteria to operating segments. This includes a brief description of the operating segments
that have been aggregated and the economic indicators that have been assessed in determining that the
aggregated operating segments share similar economic characteristics.
The amendments also clarify that an entity shall provide reconciliations of the total of the reportable segments
assets to the entitys assets if the segment assets are reported regularly to the chief operating decision maker.
50
Annual Report 2015
(647673-A)
(Continued)
2. BASIS OF PREPARATION (CONTINUED)

2.2 Adoption of amendments/improvements to MFRSs (Continued)

Amendments to MFRS 13 Fair Value Measurement
Amendments to MFRS 13 relate to the IASBs Basis for Conclusions which is not an integral part of the
Standard. The Basis for Conclusions clarifies that when IASB issued IFRS 13, it did not remove the
practical ability to measure short-term receivables and payables with no stated interest rate at invoice
amounts without discounting, if the effect of discounting is immaterial.
The amendments also clarify that the scope of the portfolio exception of MFRS 13 includes all contracts
accounted for within the scope of MFRS 139 or MFRS 9, regardless of whether they meet the definition
of financial assets or financial liabilities as defined in MFRS 132.
Amendments to MFRS 116 Property, Plant and Equipment
Amendments to MFRS 116 clarify the accounting treatment for the accumulated depreciation when an
asset is revalued. They clarify that:

the gross carrying amount is adjusted in a manner that is consistent with the revaluation of the
carrying amount of the asset; and
the accumulated depreciation is calculated as the difference between the gross carrying amount and
the carrying amount of the asset after taking into account accumulated impairment losses.
Amendments to MFRS 124 Related Party Disclosures
Amendments to MFRS 124 clarify that an entity providing key management personnel services to the
reporting entity or to the parent of the reporting entity is a related party of the reporting entity.
Amendments to MFRS 140 Investment Property
Amendments to MFRS 140 clarify that the determination of whether an acquisition of investment property
meets the definition of both a business combination as defined in MFRS 3 and investment property as
defined in MFRS 140 requires the separate application of both Standards independently of each other.
2.3 New MFRSs and amendments/improvements to MFRSs that have been issued, but yet to be
effective

The Group and the Company have not adopted the following new MFRSs and amendments/improvements
to MFRSs that have been issued, but yet to be effective:
Effective for financial
periods beginning
on or after
New MFRSs
MFRS 9
MFRS 15
Financial Instruments
Revenue from Contracts with Customers
1 January 2018
1 January 2018
Amendments/Improvements to MFRSs
MFRS 5
Non-current Asset Held for Sale and Discontinued Operations
1 January 2016
MFRS 7
Financial Instruments: Disclosures
1 January 2016
MFRS 10
Consolidated Financial Statements
1 January 2016
Deferred/
MFRS 11
Joint Arrangements
1 January 2016
MFRS 12
Disclosure of Interest in Other Entities
1 January 2016
MFRS 101
Presentation of Financial Statements
1 January 2016
MFRS 116
Property, Plant and Equipment
1 January 2016
Annual Report 2015
(647673-A)
51
(Continued)

effective (Continued)

The Group and the Company have not adopted the following new MFRSs and amendments/improvements
to MFRSs that have been issued, but yet to be effective: (Continued)
Effective for financial
periods beginning
on or after
Amendments/Improvements to MFRSs (Continued)
MFRS 119
Employee Benefits
1 January 2016
MFRS 127
Separate financial statements
1 January 2016
MFRS 128
Investments in Associates and Joint Ventures
1 January 2016
Deferred/
MFRS 138
Intangible Assets
1 January 2016
MFRS 141
Agriculture
1 January 2016
A brief discussion on the above significant new MFRSs and amendments/improvements to MFRSs are
summarised below. Due to the complexity of these new MFRSs and amendments/improvements to
MFRSs, the financial effects of their adoption are currently still being assessed by the Group and the
Company.
MFRS 9 Financial Instruments
Key requirements of MFRS 9: MFRS 9 introduces an approach for classification of financial assets which is driven by cash flow
characteristics and the business model in which an asset is held. The new model also results in a
single impairment model being applied to all financial instruments.
In essence, if a financial asset is a simple debt instrument and the objective of the entitys business
model within which it is held is to collect its contractual cash flows, the financial asset is measured
at amortised cost. In contrast, if that asset is held in a business model the objective of which is
achieved by both collecting contractual cash flows and selling financial assets, then the financial
asset is measured at fair value in the statements of financial position, and amortised cost information
is provided through profit or loss. If the business model is neither of these, then fair value information
is increasingly important, so it is provided both in the profit or loss and in the statements of financial
position.
MFRS 9 introduces a new, expected-loss impairment model that will require more timely recognition
of expected credit losses. Specifically, this Standard requires entities to account for expected credit
losses from when financial instruments are first recognised and to recognise full lifetime expected
losses on a more timely basis. The model requires an entity to recognise expected credit losses at
all times and to update the amount of expected credit losses recognised at each reporting date to
reflect changes in the credit risk of financial instruments. This model eliminates the threshold for the
recognition of expected credit losses, so that it is no longer necessary for a trigger event to have
occurred before credit losses are recognised.
MFRS 9 introduces a substantially-reformed model for hedge accounting, with enhanced disclosures
about risk management activity. The new model represents a significant overhaul of hedge accounting
that aligns the accounting treatment with risk management activities, enabling entities to better reflect
these activities in their financial statements. In addition, as a result of these changes, users of the
financial statements will be provided with better information about risk management and the effect of
hedge accounting on the financial statements.
52
Annual Report 2015
(647673-A)
(Continued)


Amendments to MFRS 7 Financial Instruments: Disclosures
Amendments to MFRS 7 provide additional guidance to clarify whether servicing contracts constitute
continuing involvement for the purposes of applying the disclosure requirements of MFRS 7.
The amendments also clarify the applicability of Disclosure Offsetting Financial Assets and Financial
Liabilities (Amendments to MFRS 7) to condensed interim financial statements.
Amendments to MFRS 101 Presentation of Financial Statements
Amendments to MFRS 101 improve the effectiveness of disclosures. The amendments clarify guidance
on materiality and aggregation, the presentation of subtotals, the structure of financial statements and
the disclosure of accounting policies.
Amendments to MFRS 116 Property, Plant and Equipment
Amendments to MFRS 116 prohibit revenue-based depreciation because revenue does not reflect the
way in which an item of property, plant and equipment is used or consumed.
Amendments to MFRS 127 Separate Financial Statements
Amendments to MFRS 127 allow a parent and investors to use the equity method in its separate financial
statements to account for investments in subsidiaries, joint ventures and associates, in addition to the
existing options.
Amendments to MFRS 138 Intangible Assets

Amendments to MFRS 138 introduce a rebuttable presumption that the revenue-based amortisation
method is inappropriate. This presumption can be overcome only in the following limited circumstances:
when the intangible asset is expressed as a measure of revenue, i.e. in the circumstance in which
the predominant limiting factor that is inherent in an intangible asset is the achievement of a revenue
threshold; or
when it can be demonstrated that revenue and the consumption of the economic benefits of the
intangible asset are highly correlated.
Amendments to MFRS 10 Consolidated Financial Statements and MFRS 128 Investments in
Associates and Joint Ventures
These amendments address an acknowledged inconsistency between the requirements in MFRS 10
and those in MFRS 128, in dealing with the sale or contribution of assets between an investor and its
associate or joint venture.
The main consequence of the amendments is that a full gain or loss is recognised when a transaction
involves a business, as defined in MFRS 3. A partial gain or loss is recognised when a transaction
involves assets that do not constitute a business.
Annual Report 2015
(647673-A)
53
(Continued)


Amendments to MFRS 10 Consolidated Financial Statements, MFRS 12 Disclosures of Interests

in Other Entities and MFRS 128 Investments in Associates and Joint Ventures
These amendments address the following issues that have arisen in the application of the consolidation
exception for investment entities:
Exemption from presenting consolidated financial statements: the amendments clarify that the
exemption from presenting consolidated financial statements applies to a parent entity that is a
subsidiary of an investment entity, when the investment entity measures all of its subsidiaries at fair
value.
Consolidation of intermediate investment entities: the amendments clarify that only a subsidiary is not
an investment entity itself and provides support services to the investment entity is consolidated. All
other subsidiaries of an investment entity are measured at fair value.
Policy choice for equity accounting for investments in associates and joint ventures: the amendments
allow a non-investment entity that has an interest in an associate or joint venture that is an investment
entity, when applying the equity method, to retain the fair value measurement applied by the investment
entity associate or joint venture to its interest in subsidiaries, or to unwind the fair value measurement
and instead perform a consolidation at the level of the investment entity associate or joint venture.
Amendments to MFRS 116 Property, Plant and Equipment and Amendments to MFRS 141
Agriculture
With the amendments, bearer plants would come under the scope of MFRS 116 and would be accounted
for in the same way as property, plant and equipment. A bearer plant is defined as a living plant that is
used in the production or supply of agricultural produce, is expected to bear produce for more than one
period and has a remote likelihood of being sold as agricultural produce, except for incidental scrap
sales.
Nevertheless, the produce growing on the bearer plant would remain within the scope of MFRS 141.
This is because the growth of the produce directly increases the expected revenue from the sale of the
produce. Moreover, fair value measurement of the growing produce provides useful information to users
of financial statements about future cash flows that an entity will actually realise as the produce will
ultimately be detached from the bearer plants and sold separately.
2.4 Functional and presentation currency

Unless otherwise indicated, the amounts in these financial statements have been rounded to the nearest
thousand.
2.5 Basis of measurement

The financial statements of the Group and of the Company have been prepared on the historical cost
basis, except as otherwise disclosed in Note 3.
2.6 Use of estimates and judgement

The preparation of financial statements in conformity with MFRSs requires the use of certain critical
accounting estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial statements, and the reported
amounts of the revenue and expenses during the reporting period. It also requires Directors to exercise
their judgement in the process of applying the Groups and the Companys accounting policies. Although
these estimates and judgement are based on the Directors best knowledge of current events and
actions, actual results may differ.

The areas involving a higher degree of judgement or complexity, or areas where assumptions and
estimates that are significant to the financial statements are disclosed in Note 4.
54
Annual Report 2015
(647673-A)
(Continued)

2.7 Change in accounting policy

During the financial year, the Group changed its accounting policy on land and buildings from cost model
to revaluation model. The change in accounting policy has been applied prospectively.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Unless otherwise stated, the following accounting policies have been used consistently in dealing with items
which are considered material in relation to the financial statements of the Group and of the Company:3.1 Basis of Consolidation

The consolidated financial statements comprise the financial statements of the Company and its
subsidiaries. The financial statements of the subsidiaries, associates, and joint ventures used in the
preparation of the consolidated financial statements are prepared for the same reporting date as
the Company. Consistent accounting policies are applied to like transactions and events in similar
circumstances.
(i) Subsidiaries and business combination

Subsidiaries are entities (including structured entities) over which the Group is exposed, or has
rights, to variable returns from its involvement with the acquirees and has the ability to affect those
returns through its power over the acquirees.
The financial statements of subsidiaries are included in the consolidated financial statements from
the date the Group obtains control of the acquirees until the date the Group loses control of the
acquirees.
The Group applies the acquisition method to account for business combinations from the acquisition
date.
For a new acquisition, goodwill is initially measured at cost, being the excess of the following:
the fair value of the consideration transferred, calculated as the sum of the acquisition-date
fair value of assets transferred (including contingent consideration), the liabilities incurred to
former owners of the acquiree and the equity instruments issued by the Group. Any amounts that
relate to pre-existing relationships or other arrangements before or during the negotiations for the
business combination, that are not part of the exchange for the acquiree, will be excluded from
the business combination accounting and be accounted for separately; plus
the recognised amount of any non-controlling interests in the acquiree either at fair value or at the
proportionate share of the acquirees identifiable net assets at the acquisition date (the choice of
measurement basis is made on an acquisition-by-acquisition basis); plus
if the business combination is achieved in stages, the acquisition-date fair value of the previously
held equity interest in the acquiree; less
the net fair value of the identifiable assets acquired and the liabilities assumed at the acquisition
date.
The accounting policy for goodwill is set out in Note 3.5(i).
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss at
the acquisition date.
Transaction costs, other than those associated with the issue of debt or equity securities, that the
Group incurs in connection with a business combination are expensed as incurred.
Annual Report 2015
(647673-A)
55
(Continued)
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3.1 Basis of Consolidation (Continued)
(i) Subsidiaries and business combination (Continued)

If the business combination is achieved in stages, the Group remeasures the previously held equity
interest in the acquiree to its acquisition-date fair value, and recognises the resulting gain or loss, if
any, in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that
have been previously been recognised in other comprehensive income are reclassified to profit or
loss or transferred to retained earnings where such treatment would be appropriate if that interest
were disposed of directly.
If the initial accounting for a business combination is incomplete by the end of the reporting period
in which the business combination occurs, the Group uses provisional fair value amounts for the
items for which the accounting is incomplete. The provisional amounts are adjusted to reflect new
information obtained about facts and circumstances that existed as of the acquisition date, including
additional assets or liabilities identified in the measurement period. The measurement period for
completion of the initial accounting ends as soon as the Group receives the information it was
seeking about facts and circumstances or learns that more information is not obtainable, subject to
the measurement period not exceeding one year from the acquisition date.

Upon the loss of control of subsidiary, the Group derecognises the assets and liabilities of the
former subsidiary, any non-controlling interests and the other components of equity related to the
former subsidiary from the consolidated statement of financial position. Any surplus or deficit arising
on the loss of control is recognised in profit or loss. If the Group retains any interest in the former
subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently,
it is accounted for as an associate, joint venture or an available-for-sale financial asset.
Changes in the Groups ownership interest in a subsidiary that do not result in a loss of control
are accounted for as equity transactions. The difference between the Groups share of net assets
before and after the change, and the fair value of the consideration received or paid, is recognised
directly in equity.
(ii) Non-controlling Interests

Non-controlling interests represent the equity in subsidiaries not attributable, directly or indirectly,
to owners of the Company and are presented separately in the consolidated statement of financial
position within equity.
Losses attributable to the non-controlling interests are allocated to the non-controlling interests
even if the losses exceed the non-controlling interests.
(iii) Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from intragroup transactions are eliminated in preparing the consolidated financial statements.
3.2 Foreign Currency

(i) Functional and presentation currency

The individual financial statements of each entity in the Group are measured using the currency
of the primary economic environment in which the entity operates (the functional currency). The
consolidated financial statements are presented in Ringgit Malaysia (RM), which is also the
Companys functional currency.
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3.2 Foreign Currency (Continued)
(ii) Foreign currency transactions

Transactions in foreign currencies are measured in the respective functional currencies of the
Company and its subsidiaries and are recorded on initial recognition in the functional currencies at
exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities
denominated in foreign currencies are translated at the rate of exchange ruling at the end of the
reporting period. Non-monetary items denominated in foreign currencies that are measured at
historical cost are translated using the exchange rates as at the dates of the initial transactions.
Non-monetary items denominated in foreign currencies measured at fair value are translated using
the exchange rates at the date when the fair value was determined.
Exchange difference arising on the settlement of monetary items or on translating monetary items
at the end of the reporting period are recognised in profit or loss except for exchange differences
arising on monetary items that form part of the Groups net investment in foreign operations, which
are recognised initially in other comprehensive income and accumulated under foreign currency
translation reserve in equity. The foreign currency translation reserve is reclassified from equity to
profit or loss of the Group on disposal of the foreign operation.
Exchange differences arising on the translation of non-monetary items carried at fair value are
included in the profit or loss for the period except for the differences arising on the translation of nonmonetary items in respect of which gains and losses are recognised directly in equity. Exchange
differences arising from such non-monetary items are also recognised directly in equity.
(iii) Foreign operations

The assets and liabilities of foreign operations are translated into RM at the rate of exchange ruling
at the end of the reporting period and income and expenses are translated at exchange rates
at the dates of the transactions. The exchange differences arising on the translation are taken
directly to other comprehensive income. On disposal of a foreign operation, the cumulative amount
recognised in other comprehensive income and accumulated in equity under foreign currency
translation reserve relating to that particular foreign operation is recognised in the profit or loss.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as
assets and liabilities of the foreign operations and are recorded in the functional currency of the
foreign operations and translated at the closing rate at the end of the reporting period.
3.3 Property, Plant and Equipment and Depreciation

(i) Recognition and measurement
Property, plant and equipment (other than land and buildings) are measured at cost less
accumulated depreciation and any accumulated impairment losses. The policy for the recognition
and measurement of impairment losses is in accordance with Note 3.6.
Cost includes expenditures that are directly attributable to the acquisition of the asset and any
other costs directly attributable to bringing the asset to working condition for its intended use, and
the costs of dismantling and removing the items and restoring the site on which they are located.
Purchased software that is integral to the functionality of the related equipment is capitalised as part
of that equipment.
The cost of property, plant and equipment recognised as a result of a business combination is
based on fair value at acquisition date. The fair value of property is the estimated amount for which
a property could be exchanged between a willing buyer and a willing seller in an arms length
transaction after proper marketing wherein the parties had each acted knowledgeably, prudently
and without compulsion. The fair value of other items of plant and equipment is based on the quoted
market prices for similar items.
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(Continued)

3.3 Property, Plant and Equipment and Depreciation (Continued)

(i) Recognition and measurement (Continued)

When significant parts of an item of property, plant and equipment have different useful lives, they
are accounted for as separate items (major components) of property, plant and equipment.
During the financial year, the Group have changed its accounting policy from cost model to
revaluation model for freehold land and buildings. The change in accounting policy has been applied
propectively.
Freehold land and buildings are measured at fair value, based on valuations by external independent
valuers, less accumulated depreciation on buildings and any accumulated impairment losses
recognised after the date of valuation.
Valuations are performed with sufficient regularity to ensure that the fair value of the freehold land
and buildings does not differ materiality from the carrying amount.
A revaluation surplus is recognised in other comprehensive income and credited to the revaluation
reserve. However, the increase shall be recognised in profit or loss to the extent that it reverses a
revaluation decrease of the same asset previously recognised in profit or loss. If an assets carrying
amount is decreased as a result of a revaluation, the decrease shall be recognised in profit or loss.
However, the decrease shall be recognised in other comprehensive income to the extent of any
credit balance existing in the revaluation reserve in respect of that asset.
(ii) Subsequent costs

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will
flow to the Group and its cost can be measured reliably. The carrying amount of those parts that are
replaced is derecognised. The costs of the day-to-day servicing of property, plant and equipment
are recognised in the profit or loss as incurred.
(iii) Depreciation
Depreciation is recognised in the profit or loss on a straight-line basis over the estimated useful lives
of each part of an item of property, plant and equipment. Freehold land is not depreciated.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying
amount of the asset and the net amount is restated to the revalued amount of the asset. The
revaluation surplus included in the asset revaluation reserve in respect of an asset is transferred
directly to retained profits on retirement or disposal of the asset.
The estimated useful lives for the current and comparative periods are as follows:Buildings
Plant and equipment
Furniture and fittings
Office equipment and renovation
Computer equipment
Motor vehicles
remaining useful lives of 40 years

10 12.5%
7 10%
10 12.5%
12.5 20%
14 20%
The depreciable amount is determined after deducting the residual value.

Depreciation methods, useful lives and residual values are reassessed at the end of the reporting
period.
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3.3 Property, Plant and Equipment and Depreciation (Continued)
(iv) Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset
is recognised in profit or loss.
(v) Assets under hire purchase

Property, plant and equipment acquired under hire purchase arrangements are capitalised at their
purchase cost and are depreciated on the same basis as owned property, plant and equipment. The
total amount payable under hire purchase arrangement is as shown under hire purchase liabilities.
3.4 Investment properties

Investment properties are properties held to earn rental income or for capital appreciation or both.
Investment properties are measured initially at cost, including transaction cost. Subsequent to initial
recognition, investment properties are stated at cost less accumulated depreciation and any identified
impairment losses.
Depreciation is charged to the profit or loss on a straight-line basis over the estimated useful lives of 49
years for buildings.
An investment property is derecognised on their disposal or when it is permanently withdrawn from use
and no future economic benefits are expected from its disposals. Any gains and losses arising from
derecognition of the asset is recognised in the profit or loss.
Transfers are made to or from investment property only when there is a change in use. For a transfer from
investment property carried at fair value to owner-occupied property, the deemed cost for subsequent
accounting is the fair value at the date of change in use. For a transfer from owner-occupied property to
investment property, any difference arising on the date of change in use between the carrying amount of
the item immediately prior to the transfer and its fair value is recognised directly in equity as a revaluation
of property, plant and equipment.
3.5 Intangible Assets

(i) Goodwill

Goodwill arises on business combinations is initially measured at cost, being the excess of the
aggregate of the consideration transferred and the amount recognised for non-controlling interests,
and any previous interest held, over the net identifiable assets acquired and liabilities assumed.
After initially recognition, goodwill is measured at cost less accumulated impairment losses. The
policy for the recognition and measurement of impairment losses is in accordance with Note 3.6.
(ii) Research and development expenditure

Research expenditure is recognised as an expense when incurred. Costs incurred on development

projects (relating to the design and testing of new or improved products) are recognised as intangible
assets when the following criteria are fulfilled:-
-
-
-
it is technically feasible to complete the intangible asset so that it will be available for use or sale;
Management intends to complete the intangible asset and use or sell it;
it can be demonstrated that the intangible asset will generate probable future economic benefits;
adequate technical, financial and other resources to complete the development and to use or sell
the intangible assets are available; and
- the expenditure attributable to the intangible asset during its development can be reliably
measured.
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(Continued)

3.5 Intangible Assets (Continued)
(ii) Research and development expenditure (Continued)
Other development expenditure that does not meet these criteria is recognised as an expense when
incurred. Development expenditure previously recognised as an expense cannot be recognised as
an asset in subsequent period. Capitalised development expenditure are recorded as intangible
assets and amortised from that point at which the asset is ready for use or sale, on a straight-line
basis over the estimated useful life.
The estimated useful lives of capitalised development expenditure are five (5) years.
Capitalised development expenditure are carried at cost less any accumulated amortisation
and accumulated impairment losses, if any. The policy for the recognition and measurement of
impairment losses is in accordance with Note 3.6.
Capitalised development expenditure are derecognised upon disposal and no future economic
benefits are expected from its use of disposal. The difference between the net disposal proceeds,
if any and the net carrying amount is recognised in the profit or loss.
(iii) Shortcode expenditures and database
Shortcode expenditures and database are initially measured at cost and subsequently at cost less
amortisation and allowance for impairment, if any. The policy for the recognition and measurement
of allowance for impairment losses is in accordance with Note 3.6. The amortisation period and
method are reviewed at least at each financial year end. Changes in the expected useful life or the
expected pattern of consumption of economic benefits embodied in the asset is accounted for by
changing the amortisation period or method and are treated as changes in accounting estimates.
3.6 Impairment of Non-financial Assets

The Group assesses at the end of each reporting period whether there is an indication that an asset
may be impaired. If any such indication exists, or when an annual impairment assessment for an asset
is required, the Group makes an estimate of the assets recoverable amount.
An assets recoverable amount is the higher of an assets fair value less costs to sell and its value in
use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash-generating units (CGU)).
In assessing value in use, the estimated future value cash flows expected to be generated by the
asset are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. Where the carrying amount
of the assets exceeds its recoverable amount, the asset is written down to its recoverable amount.
Impairment losses recognised in respect of a CGU or groups of CGUs are allocated first to reduce
the carrying amount of any goodwill allocated to those units or groups of units and then, to reduce the
carrying amount of the other assets in the unit or groups of units on a pro-rata basis.
Impairment losses are recognised in profit or loss except for assets that are previously revalued where
the revaluation was taken to other comprehensive income. In this case the impairment is also recognised
in other comprehensive income up to the amount of any previous revaluation.
An assessment is made at the end of each reporting period as to whether there is any indication that
previously recognised impairment losses may no longer exist or may have decreased. A previously
recognised impairment loss is reversed only if there has been a change in the estimates used to determine
the assets recoverable amount since the last impairment loss was recognised. If that is the case, the
carrying amount of the asset is increased to its recoverable amount. The increase cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been
recognised previously. Such reversal is recognised in profit or loss unless the asset is measured at
revalued amount, in which case the reversal is treated as a revaluation increase. Impairment loss on
goodwill is not reversed in subsequent period.
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3.7 Financial Assets

Financial assets are recognised in the statements of financial position when, and only when, the Group
and the Company become a party to the contractual provisions of the financial instrument.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of
financial assets not a fair value through profit or loss, directly attributable transaction costs.
The Group and the Company determine the classification of their financial assets at initial recognition,
and the categories include financial assets at fair value through profit or loss, loans and receivables,
held-to-maturity investments and available-for sale financial assets.
(i) Financial assets at fair value through profit or loss
Financial assets are classified as financial assets at fair value through profit or loss if they are held
for trading or are designated as such upon initial recognition. Financial assets held for trading are
derivatives (including separated embedded derivatives) or financial assets acquired principally for
the purpose of selling in the near term.
Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at
fair value. Any gains or losses arising from changes in fair value are recognised in profit or loss. Net
gains or net losses on financial assets at fair value through profit or loss do not include exchange
differences, interest and dividend income on the financial assets at fair value through profit or loss
are recognised separately in the profit or loss as part of other losses or other income.
Financial asset at fair value through profit or loss could be presented as current or non-current.
Financial assets that are held primarily for trading purposes are presented as current or non-current
based on the settlement date.
(ii) Loans and receivables
Financial assets with fixed or determinable payments that are not quoted in an active market are
classified as loans and receivables.
Subsequent to initial recognition, loans and receivables are measured at amortised cost using the
effective interest method. Gains and losses are recognised in profit or loss when the loans and
receivables are derecognised or impaired, and through the amortisation process.
Loans and receivables are classified as current assets, except for those having maturity dates later
than 12 months after the end of the reporting period which are classified as non-current.
(iii)
Held-to-maturity investment
Financial assets with fixed or determinable payments and fixed maturity are classified as held-tomaturity when the Group has the positive intention and ability to hold the investment to maturity.
Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost
using the effective interest method. Gains and losses are recognised in profit or loss when the
held-to-maturity investments are derecognised or impaired, and through the amortisation process.
Held-to-maturity investments are classified as non-current assets, except for those having maturity
within 12 months after the end of the reporting period which are classified as current.
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(Continued)

3.7 Financial Assets (Continued)
(iv) Available-for-sale financial assets

Available-for-sale are financial assets that are designated as available for sale or are not classified
in any of the three preceding categories.
After initial recognition, available-for-sale financial assets are measured at fair value. Any gains
or losses from changes in fair value of the financial asset are recognised in other comprehensive
income, except that impairment losses, foreign exchange gains and losses on monetary instruments
and interest calculated using the effective interest method are recognised in profit or loss. The
cumulative gain or loss previously recognised in other comprehensive income is reclassified from
equity to profit or loss as a reclassification adjustment when the financial asset is derecognised.
Interest income calculated using effective interest method is recognised in profit or loss. Dividends
on an available-for-sale equity instruments are recognised in profit or loss when the Group and the
Companys right to receive payment is established.
Investment in equity instruments whose fair value cannot be reliably measured are measured at
cost less impairment loss.
Available-for-sale financial assets are classified as non-current assets unless they are expected to
be realised within 12 months after the end of the reporting period.
A financial asset is derecognised where the contractual right to receive cash flows from the asset has
expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount
and the sum of the consideration received and any cumulative gain or loss that had been recognised in
other comprehensive income is recognised in profit or loss.
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets
within the period generally established by regulation or convention in the market place concerned. All
regular way purchases and sales of financial assets are recognised or derecognised on the trade date
i.e. the date that the Group and the Company commit to purchase or sell the asset.
3.8 Impairment of Financial Assets
The Group and the Company assess at the end of each reporting period whether there is any objective
evidence that a financial asset is impaired.
(i) Trade and other receivables and other financial assets carried at amortised cost
To determine whether there is objective evidence that an impairment loss on financial assets has
been incurred, the Group and the Company consider factors such as the probability of insolvency
or significant financial difficulties of the debtor and default or significant delay in payments. For
certain categories of financial assets, such as trade receivables, assets that are assessed not to
be impaired individually are subsequently assessed for impairment on a collective basis based on
similar risk characteristics. Objective evidence of impairment for a portfolio of receivables could
include the Group and the Companys past experience of collecting payments, an increase in the
number of delayed payments in the portfolio past the average credit period and observable changes
in national or local or economic conditions that correlate with default on receivables.
If any such evidence exists, the amount of impairment loss is measured as the difference between
the assets carrying amount and the present value of estimated future cash flows discounted at the
financial assets original effective interest rate. The impairment loss is recognised in profit or loss.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial
assets with the exception of trade receivables, where the carrying amount is reduced through the
use of an allowance account. When a trade receivable becomes uncollectible, it is written off against
the allowance account.
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3.8 Impairment of Financial Assets (Continued)
(i) Trade and other receivables and other financial assets carried at amortised cost (Continued)

If in a subsequent period, the amount of the impairment loss decreases and the decrease can
be related objectively to an event occurring after the impairment was recognised, the previously
recognised impairment loss is reversed to the extent that the carrying amount of the asset does
not exceed its amortised cost at the reversal date. The amount of reversal is recognised in profit
or loss.
(ii) Unquoted equity securities carried at cost

If there is objective evidence (such as significant adverse changes in the business environment
where the issuer operates, probability of insolvency or significant financial difficulties of the issuer)
that an impairment loss on financial assets carried at cost has been incurred, the amount of the
loss is measured as the difference between the assets carrying amount and the present value of
estimated future cash flows discounted at the current market rate of return for a similar financial
asset. Such impairment losses are not reversed in subsequent periods.
(iii) Available-for-sale financial assets

Significant or prolonged decline in fair value below cost, significant financial difficulties of the issuer
or obligor, and the disappearance of an active trading market are considerations to determine
whether there is objective evidence that investment securities classified as available-for-sale
financial assets are impaired.
If an available-for-sale financial asset is impaired, an amount comprising the difference between its
cost (net of any principal payment and amortisation) and its current fair value, less any impairment
loss previously recognised in profit or loss, is transferred from equity to profit or loss.
Impairment losses on available-for-sale equity instruments are not reversed in profit or loss in the
subsequent periods. Increase in fair value, if any, subsequent to impairment loss is recognised
in other comprehensive income. For available-for-sale debt investments, impairment losses are
subsequently reversed in profit or loss of an increase in the fair value of the investment can be
objectively related to an event occurring after the recognition of the impairment loss in profit or
loss.
3.9 Inventories

Inventories are stated at the lower of cost and net realisable value. The cost of inventories is based
on the first-in, first-out principle and includes expenditure incurred in acquiring the inventories and
bringing them to their existing location and condition. Net realisable value is the estimated selling price
in the ordinary course of business, less the estimated costs of completion and selling expenses.
The fair value of inventory acquired in a business combination is determined based on its estimated
selling price in the ordinary course of business less the estimated costs of completion and sale, and a
reasonable profit margin and based on the effort required to complete and sell the inventory.
3.10 Cash and Cash Equivalents

For the purpose of statements of cash flows, cash and cash equivalents comprise cash in hand, bank
balances and short term highly liquid investments with original maturities of three months or less, that
are readily convertible to known amounts of cash which are subject to an insignificant risk of changes
in value.
3.11 Financial Liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered
into and the definition of a financial liability.
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63
(Continued)

3.11 Financial Liabilities (Continued)

Financial liabilities, within the scope of MFRS 139, are recognised in the statement of financial position
when, and only when, the Group and the Company become a party to the contractual provisions of the
financial instrument. Financial liabilities are classified as either financial liabilities at fair value through
profit or loss or other financial liabilities.
(i) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss includes financial liabilities held for trading
and financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities held for trading include derivatives entered into by the Group and the Company
that do not meet the hedge accounting criteria. Derivative liabilities are initially measured at fair
value and subsequently stated at fair value, with any resultant gains or losses recognised in profit
or loss. Net gains or losses on derivatives include exchange differences.
The Group and the Company have not designated any financial liabilities as at fair value through
profit or loss.
(ii) Other financial liabilities
The Groups and the Companys other financial liabilities include trade payables, other payables
and loans and borrowings.
Trade and other payables are recognised initially at fair value plus directly attributable transaction
costs and subsequently measured at amortised cost using the effective interest method.
Borrowings are classified as current liabilities unless the Company has an unconditional right to
defer settlement of the liability for at least 12 months after the end of the reporting period.
For other financial liabilities, gains and losses are recognised in profit or loss when the liabilities
are derecognised, and through the amortisation process.
A financial liability is derecognised when the obligation under the liability is extinguished. When an
existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as a derecognition of a new liability, and the difference in the respective carrying amounts is
recognised in profit or loss.
3.12 Financial Guarantee Contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to
reimburse the holder for a loss it incurs because of a specified debtor fails to make payment when due.
Financial guarantee contracts are recognised initially as a liability at fair value, net of transaction costs.
Subsequent to initial recognition, financial guarantee contracts are recognised as income in profit or
loss over the period of the guarantee. If the debtor fails to make payment relating to financial guarantee
contract when it is due and the Group as issuer, is required to reimburse the holder for the associated
loss, the liability is measured at the higher of the best estimate of the expenditure required to settle the
present obligation at the end of the reporting period and the amount initially recognised less cumulative
amortisation.
3.13 Deferred Income

Deferred income represents maintenance services invoiced to customer(s) but services not yet
rendered and prepaid bulk services income as at year end.
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3.14 Hire Purchase

Assets financed by hire purchase arrangements, which transfer substantially all the risks, and rewards
of ownership to the Group are capitalised as property, plant and equipment, and the corresponding
obligations are treated as liabilities. The assets so capitalised are depreciated in accordance with the
accounting policy on property, plant and equipment. Finance charges are charged to profit or loss over
the periods of the respective agreements.
3.15 Provisions for Liabilities

Provisions for liabilities are recognised when the Group or the Company have a present obligation as
a result of a past event, when it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation, and when a reliable estimate of the amount can be made. Where
the Group or the Company expects a provision to be reimbursed, the reimbursement is recognised as
a separate asset but only when the reimbursement is virtually certain. Provisions are not recognised
for future operating losses. Provisions are reviewed at the end of each reporting period and adjusted to
reflect the current best estimate. Where the effect of the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability.
Where discounting is used, the increase in the provision due to the passage of time is recognised as
finance cost.
3.16 Borrowing Costs

Borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly attributable to
the acquisition, construction or production of that asset. Capitalisation of borrowing costs commences
when the activities to prepare the asset for its intended use or sale are in progress and the expenditures
and borrowing costs are incurred. Borrowing costs are capitalised until the assets are substantially
completed for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period they are incurred. Borrowing
costs consist of interest and other costs that the Group and the Company incurred in connection with
the borrowing of funds.
3.17 Employee Benefits

(i) Short term employee benefits

Short term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave
and sick leave are measured on an undiscounted basis and are expensed as the related service
is provided.
A provision is recognised for the amount expected to be paid under short-term cash bonus or
profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount
as a result of past service provided by the employee and the obligation can be estimated reliably.
The Groups contributions to the statutory pension fund are charged to the profit or loss in the year
to which they relate. Once the contributions have been paid, the Group has no further payment
obligations.
(ii) Post-employment benefits

The Group contributes to the Employees Provident Fund, the national defined contribution plan.
The contributions are charged to profit or loss in the period to which they are related. Once the
contributions have been paid, the Group has no further payment obligations.
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(Continued)

3.18 Revenue Recognition
(i) Goods sold and services rendered

Revenue from the sale of goods is measured at fair value of the consideration received or
receivable, net of returns and allowances, and trade discounts and volume rebates. Revenue
is recognised when the significant risks and rewards of ownership have been transferred to the
buyer, recovery of the consideration is probable, the associated costs and possible return of goods
can be estimated reliably, and there is no continuing management involvement with the goods.
Revenue from information technologies services rendered is recognised in profit or loss in

proportion to the stage of completion of the transaction at the end of the reporting period. The
stage of completion is assessed by reference to services performed to date as a percentage
of total services to be performed. Where the outcome of the transactions cannot be estimated
reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Revenue from mobile messaging gateway solutions and services is recognised upon delivery of
services, and verification and matching against settlement report received from telecommunication
service providers, as the indication of customers acceptance.
Revenue from information technology services rendered is recognised in profit or loss upon
performance of services, net of sales taxes, returns and discounts.
(ii) Dividend income

Dividend income is recognised when the right to receive payment is established.
(iii) Interest income

Interest income is recognised on an accrual basis unless collectability is in doubt in which

recognition will be on a receipt basis.
3.19 Income Taxes

(i) Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted by the end of the reporting period.
Current taxes are recognised in profit or loss except to the extent that the tax relates to items
recognised outside profit or loss, either in other comprehensive income or directly to equity.

(ii) Deferred tax

Deferred tax is provided using the liability method on temporary differences at the end of the
reporting period between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred tax liabilities are recognised for all temporary differences, except:- where the deferred tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and
- in respect of taxable temporary differences associated with investments in subsidiaries,
associates and interests in joint ventures, where the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary differences will not reverse
in the foreseeable future.
66
Annual Report 2015
(647673-A)
(Continued)

3.19 Income Taxes (Continued)
(ii) Deferred tax (Continued)

Deferred tax assets are recognised for all deductible temporary differences, carry forward of
unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of unused tax
losses can be utilised except:- where the deferred tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction that is not a business combination and,
at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
- in respect of deductible temporary differences associated with investments in subsidiaries,
associates and interests in joint ventures, deferred tax assets are recognised only to the extent
that it is probable that the temporary differences will reverse in the foreseeable future and
taxable profit will be available against which the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are reassessed at the end of each reporting period and are
recognised to the extent that it has become probable that future taxable profit will allow the deferred
tax assets to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
year the asset is realised or the liability is settled, based on tax rates and tax laws that have been
enacted or substantively enacted at the end of the reporting period.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or
loss. Deferred tax items are recognised in correlation to the underlying transaction either in other
comprehensive income or directly in equity and deferred tax arising from a business combination
is adjusted against goodwill on acquisition.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.
3.20 Segment Reporting

For management purposes, the Group is organised into operating segments based on business
segments which are reviewed regularly by the chief operating decision maker, which is the Managing
Director of the Group, to make decisions about resources to be allocated to the segment and assess
its performance, and for which discrete financial information is available.
3.21 Share Capital

An equity instrument is any contract that evidences a residual interest in the assets of the Company
after deducting all of its liabilities. Ordinary shares are equity instruments.
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental
transaction costs. Ordinary shares are classified as equity. Dividends on ordinary shares are recognised
in equity in the period in which they are declared.
Annual Report 2015
(647673-A)
67
(Continued)

3.22 Contingencies

A contingent liability or asset is a possible obligation or asset that arises from past events and whose
existence will be confirmed only by the occurrence or non-occurrence of uncertain future event(s)
not wholly within the control of the Group. Contingent liabilities and assets are not recognised in the
statements of financial position of the Group.
3.23 Fair value measurements

Fair value of an asset or a liability, except for share-based payment and lease transactions, is
determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The measurement assumes that
the transaction to sell the asset or transfer the liability takes place either in the principal market or in
the absence of a principal market, in the most advantageous market.
For non-financial asset, the fair value measurement takes into account a market participants ability
to generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would be use the asset in its highest and best use.
When measuring the fair value of an asset or a liability, the Group uses observable market data as far
as possible. Fair value are categorised into different levels in a fair value hierarchy based on the input
used in the valuation technique as follows:-
Level 1: quoted prices (unadjusted) in active markets for the identical assets or liabilities that the
Group can access at the measurement date.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
Level 3: unobservable inputs for the asset or liability.

The Group and the Company recognises transfers between levels of the fair value hierarchy as of the
date of the event or change in circumstances that caused the transfers.
4. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

Significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have
significant effect in determining the amounts recognised in the financial statements include the following:(i) Useful lives of property, plant and equipment (Note 5)

The Group estimates the useful lives of property, plant and equipment based on the period over which the
assets are expected to be available for use. The estimated useful lives of property, plant and equipment
are reviewed periodically and are updated if expectations differ from previous estimates due to physical
wear and tear, technical or commercial obsolescence and legal or other limits on the use of the relevant
assets.
In addition, the estimation of the useful lives of property, plant and equipment are based on internal
technical evaluation and experience with similar assets. It is possible, however, that future results of
operations could be materially affected by changes in the estimates brought about by changes in factors
mentioned above. The amounts and timing of recorded expenses for any period would be affected by
changes in these factors and circumstances. A reduction in the estimated useful lives of the property,
plant and equipment would increase the recorded expenses and decrease the non-current assets.
68
Annual Report 2015
(647673-A)
(Continued)
4. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (CONTINUED)

(ii) Impairment of Non-financial Assets (Note 5 and Note 6)

The Group assesses impairment of assets whenever the events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable i.e. the carrying amount of the asset is
more than the recoverable amount.
Recoverable amount is measured at the higher of the fair value less cost to sell for that asset and
its value-in-use. The value-in-use is the net present value of the projected future cash flow derived
from that asset discounted at an appropriate discount rate. Projected future cash flows are based on
the Groups estimates calculated based on historical, sector and industry trends, general market and
economic conditions, changes in technology and other available information.
(iii) Impairment of investment in subsidiaries (Note 8)

The Group carries out the impairment test based on a variety of estimation including the value-in-use of
the cash generating unit. Significant judgement is required in the estimation of the present value of future
cash flows generated by the subsidiaries, which involve uncertainties and are significantly affected by
assumptions used and judgement made regarding estimates of future cash flows and discount rates.
Changes in assumptions could significantly affect the results of the Groups tests for impairment of
investment in subsidiaries.
The carrying amounts of the investment in subsidiaries of the Company as at 31st December 2015 was
RM2,452,005/- (2014: RM3,857,713/-). The impairment loss on investment in subsidiary companies of
RM1,405,600/- were charged to profit or loss during the financial year.
(iv) Impairment of goodwill (Note 9)

The Group determines whether goodwill is impaired on an annual basis. This requires an estimation of
the recoverable amount of the cash-generating units (CGU) to which goodwill is allocated. The CGUs
impairment test was based on value-in-use. Estimating a value-in-use amount requires Management to
make an estimate of the expected future cash flow from the CGU and also choose a suitable discount
rate in order to calculate the present value of those cash flows. Further details of the carrying value, the
key assumptions applied in the impairment assessment of goodwill are given in Note 9.
(v) Net realisable values of inventories (Note 11)

Reviews are made periodically by Management on damaged, obsolete and slow-moving inventories.
These reviews require judgement and estimates. Possible changes in these estimates could result in
revisions to the valuation of inventories.
(vi) Impairment of receivables (Note 12)

The Group assesses at each reporting date whether there is any objective evidence that a financial
asset is impaired. To determine whether there is objective evidence of impairment, the Group considers
factors such as the probability of insolvency or significant financial difficulties of the debtor and default
or significant delay in payments.
(vii) Valuation of warrants (Note 16)

The Group measures the value of the warrants by reference to the fair value at the date which they are
granted. The estimation of fair value requires determining the most appropriate valuation model.
This estimate also requires the determination of the most appropriate inputs to the valuation model such
as the volatility, risk free interest rate, option life and making assumptions about them.
Annual Report 2015
(647673-A)
69
(Continued)
4. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (CONTINUED)

(viii) Contingent liabilities

Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be
estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow
of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the
occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities
unless the probability of outflow of economic benefits is remote.
The determination of treatment of contingent liabilities is based on Managements view of the expected
outcome of the contingencies for matters in the ordinary course of the business.
(xi) Income Taxes (Note 26)

The Group and the Company operate in various jurisdictions and are subject to income taxes in each
jurisdiction. Significant judgement is required in determining the Groups and the Companys estimation
for current and deferred taxes because the ultimate tax liability for the Group as a whole is uncertain.
When the final outcome of the tax payable is determined with the tax authorities in each jurisdiction,
the amounts might be different from the initial estimates of the taxes payables. Such differences may
impact the current and deferred taxes in the period when such determination is made. The Group
and the Company will make adjustments for current or deferred taxes in respect of prior years in the
current period on those differences arise. The income tax expenses of the Group and the Company are
disclosed in Note 26.
(x) Revaluation of Property, Plant and Equipment (Note 5)

The Group and the Company measure its freehold land and buildings at revalued amount with changes
in fair value being recognised in other comprehensive income. The Group and the Company engaged
independent valuation specialists to determine the fair value. The carrying amount of the freehold land
and buildings at the end of the reporting period, and the relevant revaluation bases, are disclosed in
Note 5 to the financial statements.
(Continued)
Annual Report 2015

-
-
163
356
527
1,472
50
2,568

Net book value at 31st
December 2015
230
3,770
2
320
135
204
44
4,705

230
3,770
165
676
662
1,676
94
7,273

Accumulated depreciation
At 1st January 2015
-
432
163
303
465
1,332
205
2,900
Depreciation for the
financial year
-
59
-
53
66
145
21
344
Disposals/Written off
-
-
-
-
(4)
(5)
(176)
(185)
Transfer to investmet property
(Note 6)

-
(16)
-
-
-
-
-
(16)
Elimination of accumulated
depreciation on revaluation
-
(475)
-
-
-
-
-
(475)
Cost/Valuation
At 1st January 2015
19
3,738
163
534
662
1,626
494
7,236
Additions
-
-
2
142
27
61
-
232
Revaluation surplus
211
1,407
-
-
-
-
-
1,618
Disposals/Written off
-
-
-
-
(27)
(11)
(400)
(438)
Transfer to investmet property
(Note 6)
-
(900)
-
-
-
-
-
(900)
Elimination of accumulated
depreciation on revaluation
-
(475)
-
-
-
-
-
(475)

Office

Plant Furniture equipment
Freehold
and
and
and Computer
Motor

Group
land
Buildings equipment
fittings renovation equipment
vehicles
Total

2015 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
5. PROPERTY, PLANT AND EQUIPMENT
70
(647673-A)
(Continued)
534
662
494
488
63
-
(57)
7,236
6,907
1,139
(429)
(381)
19
Net book value at

31st December 2014

3,306
432
-
163
231
303
197
465
294
1,332
289
205
4,336
2,900
Accumulated depreciation
At 1st January 2014
-
395
218
270
516
1,395
189
2,983
Depreciation for the financial year
-
80
5
45
75
167
73
445
Written off
-
-
(60)
(9)
(117)
(222)
-
(408)
Disposals
-
(43)
-
(3)
(9)
(8)
(57)
(120)
163
1,626
3,738
19
1,766
98
(226)
(12)
Cost
At 1st January 2014
19
3,134
223
543
734
Additions
-
900
-
7
71
Written off
-
-
(60)
(10)
(133)
Disposals
-
(296)
-
(6)
(10)

Office

Plant Furniture equipment
Freehold
and
and
and Computer
Motor

Group
land
Buildings equipment
fittings renovation equipment
vehicles
Total

2014 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
5. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Annual Report 2015
(647673-A)
71
72
Annual Report 2015
(647673-A)
(Continued)

(a) Assets pledged as security

Buildings with net carrying amount of RM2,111,703/- (2014: RM3,045,935/-) have been pledged to
licensed banks to secure the banking facilities granted to subsidiaries as disclosed in Note 18 to the
financial statements.
(b) Assets held under hire purchase arrangements

The net carrying amount of property, plant and equipment held under hire purchase arrangements are
as follows:-
Group

2015
2014

RM000
RM000
Motor vehicles

(c) Revaluation of land and buildings
44
289
During the financial year, the Group changed its accounting policy on land and buildings from cost model
to revaluation model. The change in accounting policy has been applied prospectively.
Had the revalued land and buildings been carried at historical cost less accumulated depreciation, the
net carrying value of the land and buildings that would been included in the financial statements of the
Group is as follows:-

- Freehold land

- Buildings
Group
2015
RM000
19
2,363
(d) Fair value information

Fair value of land and buildings are categorised as follow:-

Group
2015
- Freehold land
- Buildings

Level 1
RM000
Level 2
RM000
Level 3
RM000
Total
RM000
-
-
230
3,770
-
-
230
3,770
4,000
4,000
Policy on transfer between levels

The fair value of an asset to be transferred between levels is determined as of the date of the event or
change in circumstances that caused the transfer.
Level 1 fair value
Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical financial
assets or liabilities that the entity can access at the measurement date.

Annual Report 2015
(647673-A)
73
(Continued)

(d) Fair value information (Continued)
Level 2 fair value
Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are
observable for the land and buildings, either directly or indirectly.
The freehold land and buildings of the Group were revalued on 24th November 2015 and 27th November
2015 based on valuation performed by independent firms of professional valuers using the comparison
method. The Directors are of the opinion that the carrying amount of the land and buildings do not
materially differ from the fair value as at reporting date.
The most significant inputs into this valuation approach are location, size and shape of the lot, condition
and design of the building, site facilities available, market conditions and other factors in order to arrive
at a common basis for comparison.
Level 3 fair value
Level 3 fair value is estimated using unobservable inputs for the land and buildings.
Transfer between levels of fair value hierarchy
There is no transfer between level 1 and level 2 of fair value hierarchy during the financial year.
6. INVESTMENT PROPERTY

At Cost
At the beginning of the financial year
Transfer from property, plant and equipment (Note 5)
At the end of the financial year

Accumulated Depreciation

At the beginning of the financial year
Depreciation for the financial year


Net Carrying Amount as at 31st December

At fair value
Building
Group
2015
RM000
884
884
18
18
866
1,060
(a) Building with net carrying amount of RM886,250/- (2014: RM Nil) have been pledged to licensed banks to
secure the banking facilities granted to subsidiaries as disclosed in Note 18 to the financial statements.

74
Annual Report 2015
(647673-A)
(Continued)
6. INVESTMENT PROPERTY (CONTINUED)

(b) The following are recognised in profit or loss in respect of investment properties:

Rental income
Direct operating expenses on income generating investment property

Group
2015
RM000
34
38
(c) The fair value of the building is categorised as Level 2. The fair value has been derived using the
comparison method. The most significant inputs into this valuation approach are location, size and
shape of the lot, condition and design of the building, site facilities available, market conditions and other
factors.

The fair value has been determined by the valuation performed by a registered independent valuer
having appropriate recognised professional qualification and recent experiences in the locations and
category of properties being valued.
7. INTANGIBLE ASSETS

Software Shortcode
development expenditure Computer
Group
costs and database
software
Total

2015 RM000 RM000 RM000 RM000
Cost
At 1st January 2015
1,942
312
11
2,265
Additions
-
2
-
2

1,942
314
11
2,267

Amortisation and impairment loss
At 1st January 2015
1,942
180
3
2,125
Amortisation for the financial year
-
62
2
64

1,942
242
5
2,189

Carrying amount at
31st December 2015
-
72
6
78
Group

2014
Cost

At 1st January 2014
1,942

Additions
-
302
10
11
-
2,255
10
312
11
2,265
Amortisation and impairment loss

At 1st January 2014
1,942
118
2
2,062
Amortisation for the financial year
-
62
1
63
1,942
1,942
Carrying amount at
31st December 2014
-

180
2,125
132
140
Annual Report 2015
(647673-A)
75
(Continued)
8. INVESTMENT IN SUBSIDIARIES

Company

2015
2014

RM000
RM000
Unquoted shares - at cost
At 1st January
14,224
14,124
Additions during the financial year

-
100
Dissolved during the financial year
(24)

At 31st December

14,200
14,224

Allowance for impairment loss
At 1st January

10,366
9,554
Impairment loss for the financial year

1,406
812

(24)

At 31st December

11,748
10,366

Carrying value as at 31st December

2,452
3,858
Details of the subsidiaries are as follows:-
Name of
Subsidiaries
Principal Place of Effective Ownership

Business/Country
Interest and
of Incorporation
Voting Interest
2015
%
2014
%
Principal Activities
Held by the Company

(MMSB)
Malaysia
100
100
Provision of information technology

(IT) solution and outsourcing services
and business management consultant
services.
Mexter MSC Sdn.

Bhd. (MMSC)
Malaysia
100
100
Performing research and development

and the provision of e-manufacturing
solutions and IT outsourcing services.
Elixir Intergrated
Systems Sdn.Bhd.
(ELIXIR) #
Malaysia
100
Provision
of
information
and
communication technology solution
and engineering solutions and
services.
Tonerex Technologies
Sdn. Bhd. (TTSB)
Malaysia
100
100
Dealers of test probes, jigs and fixtures

solutions, functional tester solutions
and power products.
Mexter International
Limited (MIL) ^ @
Peoples Republic
of China
100
100
Provision of IT solutions and IT

outsourcing services.
MexComm Sdn. Bhd.

(MXSB)
Malaysia
80
80
Provision of mobile messaging

gateway solutions and services.
Agensi Pekerjaan
GenY HR Sdn.Bhd.
(GenY)
Malaysia
100
100
Provision of manpower services and

project outsourcing.
Adios Interactive Sdn.

Bhd. (AISB)
Malaysia
100
100
Provision of mobile and web

application developments, advertising
and publishing.
76
Annual Report 2015
(647673-A)
(Continued)
8. INVESTMENT IN SUBSIDIARIES (CONTINUED)

Details of the subsidiaries are as follows (continued):Name of
Subsidiaries

Business/Country
Interest and
of Incorporation
Voting Interest
2015
%
2014
%
Held by the Company (Continued)

Mexter Esolutions
Sdn. Bhd. (MES) #
Malaysia
70
Provision of information technology

solutions and services.
Mexter SunOasis
Sdn. Bhd. (MSO)
Malaysia
100
100
Provision of design, development,

consulting,
marketing,
supply,
installation, testing and commissioning
services for environmental friendly
renewable energy products.
Locktech
International Sdn.
Bhd. (LISB)
Malaysia
100
100
Trading of electronic and security

products and building materials.
Singapore
100
100
Provision of IT solutions and IT

outsourcing services.
Ezymobile
International
Sdn. Bhd. (EISB)
Malaysia
100
100
Provision of IT solutions in telecommunication industry and mobile

messaging gateway solutions and
services.
P.T. MexComm
(PTMX) *
Indonesia
90
90
Provision of IT solutions in
tele-communication industry.
MexComm Ltd.
(MCL) *
Hong Kong
100
100
Provision of mobile messaging

gateway solutions and services.
MexComm
Corporation
(Thailand) Ltd.
(MCTL) *@
Thailand
100
100
Provision
of
innovative
mobile
solutions and creative, value-adding
advertising services to mobile network
operators.
Mobile Holding Ltd.

(MHL) *
Thailand
49
49
Investment holding company.
Indonesia
10
10
Provision of IT solutions in telecommunication industry.
E-G6 Solution
Thailand Co. Ltd.
(E-G6) *
Thailand
100
100
Engaged in web design and content

development.
Ezy M Holding Ltd.

(EzyM) *
Thailand
100
100
Held through MMSB

(MSPL) *
Held through MXSB
Held through EISB

PTMX *
Held through MHL
Annual Report 2015
(647673-A)
77
(Continued)

Details of the subsidiaries are as follows (continued):Name of
Subsidiaries

Business/Country
Interest and
of Incorporation
Voting Interest
2015
%
2014
%
51
51
Held through EzyM

MHL *
Thailand
*
^
Audited by firms of chartered accountants other than Baker Tilly Monteiro Heng.
Subsidiaries without audited financial statements and Auditors Reports but the financial statements of
these subsidiaries were considered by the auditors for the purposes of the financial statements of the
Group.
@ These subsidiary are in the process of voluntarily winding-up.
# These subsidiaries dissolved by way of members voluntary winding-up during the financial year.
(a) Non-controlling Interest in Subsidiaries Companies

The financial information of the Groups subsidiaries that have material non-controlling interests are as
follows:-

Other

E-G6 individually
Ezymobile
Solution immaterial
Mexcomm International
Thailand subsidiary

Sdn. Bhd.
Sdn. Bhd.
Co. Ltd. companies

RM000
RM000
RM000
RM000
2015
NCI percentage
of ownership
interest and
voting interest
20%
20%
20%

Carrying amount
of NCI
524
(514)
393
(18)

(Loss)/profit
allocated to NCI
(275)
49
74
12
Total
RM000
385
(140)
78
Annual Report 2015
(647673-A)
(Continued)

(b) Summarised financial information of material non-controlling interests

The summarised financial information (before intra-group elimination) of the Groups subsidiaries that
have material non-controlling interests are as follows:-

Ezymobile

Sdn. Bhd.
Sdn. Bhd.

RM000
RM000
Summarised statements of financial position
As at 31st December 2015

Non-current assets
600
61
Current assets

15,198
1,331
Current liabilities

(13,173)
(4,692)

Net assets

2,625
(3,300)
Summarised statements of
comprehensive income
Financial year ended
31st December 2015
Revenue

18,584
(Loss)/profit for the financial year

(1,373)
Total comprehensive (loss)/income

(1,373)

Summarised cash flow information
31st December 2015
Cash flows from operating activities
(1,284)
Cash flows from investing activities

1,480
Cash flows from financing activities
(358)

Net decrease in cash and
cash equivalents

(162)
4,253
246
246
E-G6
Solution
Thailand
Co. Ltd.
RM000
17
8,982
(6,656)
2,343
9,871
370
370
(1,562)
-
1,350
(110)
(126)
(416)
(212)
(652)

Other

E-G6 individually
Ezymobile
Solution immaterial
Thailand subsidiary

Sdn. Bhd.
Sdn. Bhd.
Co. Ltd. companies

RM000
RM000
RM000
RM000
Total
RM000
2014
NCI percentage
of ownership
interest and
voting interest
20%
20%
20%

Carrying amount
of NCI
800
(564)
319
(26)
529

Profit/(loss)
allocated to NCI
6
(341)
278
(2)
(59)
Annual Report 2015
(647673-A)
79
(Continued)

(b) Summarised financial information of material non-controlling interests (Continued)

The summarised financial information (before intra-group elimination) of the Groups subsidiaries that
have material non-controlling interests are as follows (continued):-

Ezymobile

Sdn. Bhd.
Sdn. Bhd.

RM000
RM000
Summarised statements of financial position
As at 31st December 2014
Non-current assets
705
90
Current assets
12,794
864
Current liabilities
(9,501)
(4,499)
E-G6
Solution
Thailand
Co. Ltd.
RM000
16
9,780
(8,038)
Net assets
3,998
(3,545)
1,758
Summarised statements of
comprehensive income
31st December 2014
Revenue
Profit/(loss) for the financial year
Total comprehensive income/(loss)
16,841
29
29
5,530
(1,704)
(1,704)
13,449
1,392
1,392
Summarised cash flow information

31st December 2014
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase/(decrease) in cash
and cash equivalents
268
896
(1,057)
107
(873)
-
415
3,027
(5)
1,048
(458)
4,070
9. GOODWILL ON CONSOLIDATION
Group

2015
2014

RM000
RM000
At 1st January

Less: Accumulated impairment losses

At 31st December
3,737
(7)
3,737
-
3,730
(2,913)
3,737
(2,913)
817
824
The Group has assessed the recoverable amounts of goodwill allocated and determined that no impairment
is required. The recoverable amounts of the cash-generating unit is determined using the value-in-use
approach, and this is derived from the present value of the future cash flows from the operating segments
computed based on the projections of financial budgets approved by management covering a period of 5
years.
The key assumptions used in the determination of the recoverable amounts are as follows:(a) The pre-tax discount rate of 13.07% per annum used reflects the Managements best estimate of return
on capital employed required;
(b) Growth rate of 5% has been used based on industry outlook for that segment; and
(c) The profit margins of 10% per annum used in the projections are based on historical actual margins.
The Management believes that no reasonable possible change in any of the above key assumptions would
cause the recoverable amount of the CGU to decline below its carrying value.

80
Annual Report 2015
(647673-A)
(Continued)
10. OTHER INVESTMENTS

Group
Company

2015
2014
2015
2014

RM000
RM000
RM000
RM000
Unit trust at fair value
At 1st January

1,835
4,711
217
2,199
Addition
140
1,469
8
18
Disposal

(1,520)
(4,348)
-
(2,000)
Fair value gain

1
3
-

At 31st December

456
1,835
225
217

The fair values of these securities are based on closing market prices on the last market day of the financial
year.
11. INVENTORIES
Group

2015
2014

RM000
RM000
At net realisable value

Computer and electronics parts

831
Testing equipment and peripherals

2

833
1,569
3
1,572
Group

2015
2014

RM000
RM000
Recognised in profit and loss:
Write-down to net realisable value

Reversal of write-down of inventories

105
(31)
(152)
During the financial year ended 31st December 2015, the amount of inventories recognised as an expense
in the cost of sales of the Group was RM5,165,189/- (2014: RM5,435,042/-).

Annual Report 2015

12. TRADE AND OTHER RECEIVABLES

(647673-A)
81
(Continued)
2015
RM000
Group
Trade receivables
Trade receivables

9,450
Less: Allowance for impairment
-

Trade receivables, net

9,450

Other receivables
Other receivables
1,341
Deposits
116
Prepayments
363

Total other receivables

1,820

Total trade and other receivables

11,270
Company
Other receivables
Other receivables
-
Deposits
1
Prepayments

1

Other receivables, net
2
2014
RM000
5,716
5,716
1,847
552
297
2,696
8,412
4
1
17
22
(a) Trade receivables

The Groups normal trade credit terms range from 14 to 90 days (2014: 14 to 90 days).
Trade receivables are non-interest bearing and the Groups normal trade credit terms range from 14
to 90 days. Other credit terms are assessed and approved on a case-by-case basis. The credit period
varies from customers to customers after taking into consideration their payment track record, financial
background, length of business relationship and size of transactions. They are recognised at their
original invoice amounts which represent their fair values on initial recognition.
As at the end of the reporting period, the Group has significant concentration of credit risk in the form
of outstanding balances owing by 12 (2014: 10) customers representing 58% (2014: 39%) of the total
receivables respectively.
The foreign currency profile of trade receivables is as follows:-
Group

2015
2014

RM000
RM000
Indonesian Rupiah
Singapore Dollar
US Dollar
Thai Baht
Ringgit Malaysia

7
88
117
495
8,743
124
10
1,168
4,414
9,450
5,716
82
Annual Report 2015
(647673-A)
(Continued)
12. TRADE AND OTHER RECEIVABLES (CONTINUED)

(a) Trade receivables (Continued)

Ageing analysis of trade receivables
The ageing analysis of the Groups trade receivables is as follows:-
Group

2015
2014

RM000
RM000
Neither past due nor impaired

1 to 30 days past due not impaired



Impaired

3,037
2,329
2,386
1,743
491
1,793
1,554
519
554
760
6,413
3,387
-
9,450
5,716
Receivables that are neither past due nor impaired

Trade and other receivables that are neither past due nor impaired are creditworthy debtors with good
payment records with the Group.
None of the Groups trade receivables that are neither past due nor impaired have been renegotiated
during the financial year.
Receivables that are past due but not impaired
The Group has trade receivables amounting to RM6,412,993/- (2014: RM3,387,130/-) that are past due
at the end of the reporting period but not impaired.
Based on Management experience, minimal receivables past due were written off due to nonrecoverability. The Management has a credit control procedure in place to monitor and minimise the
exposure of default. All in all, the Directors believe that no impairment loss is necessary in respect of
these trade receivables past due.
13. AMOUNT DUE FROM/(TO) SUBSIDIARIES

Amount due from/(to) subsidiaries are non-trade in nature, unsecured, interest free and repayable on
demand. All non-trade balances are in respect of advances to subsidiaries.
Annual Report 2015
(647673-A)
83
(Continued)
14. CASH AND BANK BALANCES

Group
Cash on hand
Cash at bank

Deposits placed with a licensed bank

Company
Cash at bank

2015
RM000
2014
RM000
20
7,738
76
16
9,938
76
7,834
10,030
33
510
The foreign currency profile of cash and bank balances is a follows:-

Group
Hong Kong Dollar
China Renminbi

US Dollar
Singapore Dollar

Ringgit Malaysia

Thai Bath

2015
RM000
2014
RM000
11
19
123
176
2,875
4,630
8
17
912
153
3,361
5,579
7,834
10,030
15. SHARE CAPITAL

Group and Company

2015 2014
Number
Number
of shares
of shares
Unit000
RM000
Unit000
RM000
Ordinary shares of RM0.10 each

Authorised:-
At the beginning/end of the
financial year
500,000
50,000
500,000

Issued and fully paid:-

At the beginning of the
financial year
196,794
19,679
178,904
Issuance of shares
-
-
17,890

196,794
19,679
196,794

50,000
17,890
1,789
19,679
84
Annual Report 2015
(647673-A)
(Continued)
16. WARRANTS RESERVE

Warrants reserve

RM000

Group and Company

At 1st January 2015/ 31st December 2015
Free Detachable Warrants 2013/2018
On 18th September 2013, the Warrants 2013/2018 were issued for free pursuant to the renounceable Rights
Issue on 25th September 2013 from the issuance of 89,452,020 new ordinary shares of RM0.10 each
(Rights Shares) on the basis of one Rights Share for each existing ordinary share of RM0.10 each in the
Company, together with the issuance of 89,452,020 new free detachable warrants (Warrants) on the basis
of one free Warrant for each Rights Share subscribed for at an issue price of RM0.10 per Rights Share.
Warrants 2013/2018 are listed on Bursa Malaysia Securities Berhad. Each new warrant entitles its registered
holder, at any time from the date of its issue up to and including 17th September 2018, to subscribe for one
new ordinary share of RM0.10 each in the Company at an exercise price of RM0.13 per share which subject
to adjustments under the terms set out in the Deed Poll dated 12th August 2013 constituting the Warrants
2013/2018.
Any warrants not exercised during the Exercise Period will thereafter lapse and cease to be valid for any
purpose.
Issue
Date
18.9.2013
Expiry
Date
17.9.2018
Exercise
Price
RM per
Warrant
At the
Beginning
of
Financial
Year
0.13
5,385
Issued
Exercised
At the
End of
Financial
Year
89,452,020
89,452,020
There were no Warrants 2013/2018 exercised during the financial year.

The fair value of the free warrants at the issuance date is valued by the Directors based on the Black Scholes
valuation model with the following inputs:Fair value of the free warrants at the issuance date (RM)
Weighted average share price (RM)
Exercise price (RM)
Warrants life (Years)
Volatility (%)

0.0602
0.12
0.13
5
57.68
Annual Report 2015
(647673-A)
85
(Continued)
17. OTHER RESERVES

Translation Revaluation

reserve
reserve

RM000
RM000
Total
RM000
Group

At 1st January 2014

47
-
47

Other comprehensive income:
differences for foreign
operations

(76)
-
(76)


(29)
-
(29)

Other comprehensive income:
Items that will not be reclassified
subsequently to profit or loss
Surplus on revaluation of property,
plant and equipment

-
1,270
1,270

Items that are or may be reclassified
subsequently to profit or loss

Foreign currency translation differences
for foreign operations

316
-
316

Total other comprehensive income

316
1,270
1,586


287
1,270
1,557
(a) Translation reserve

The foreign currency translation reserve represents exchange differences arising from the translation of
the financial statements of foreign operations whose functional currencies are different from that of the
Groups presentation currency.
(b) Revaluation reserve

The revaluation reserve of the Group represents net revaluation surplus arising from valuation of freehold
land and buildings.

86
Annual Report 2015
(647673-A)
(Continued)
18. BORROWINGS
Group

2015
2014

Note
RM000
RM000
Secured:
Current liabilities
Term loan
(a)
105
99
Hire purchase liabilities
(b)
11
72

116
171
Non-current liabilities
Term loan
(a)
2,050
2,157
Hire purchase liabilities
(b)
27
136

2,077
2,293

Total borrowings
2,193
2,464
(a) Term loan

The term loan is secured by:(i) first legal charge over the building of a subsidiary as disclosed in Note 5 (a) and Note 6 (a) to the
financial statements; and
(ii) corporate guarantee by the Company;
The repayment terms of the term loan are as follows:-
Group

2015
2014

RM000
RM000
Within the next twelve months

105

After the next twelve months
- not later than two years

110
- later than two years but not later
than five years

368
- later than five years

1,572

2,050

2,155

99
104
349
1,704
2,157
2,256
Annual Report 2015
(647673-A)
87
(Continued)
18. BORROWINGS (CONTINUED)

(b) Hire purchase liabilities

Future minimum hire purchase payments under hire purchase together with the present value of the net
minimum hire purchase payments are as follows:-
Group

2015
2014

RM000
RM000
Minimum hire purchase payments
- not later than one year

- later than one year but not later than five years

Less: Future interest charges

Present value of hire purchase payables

Represented by:-

Current
- not later than one year

Non-current
- later than one year but not later than five years

13
29
80
142
42
(4)
222
(14)
38
208
11
72
27
136
38
208
19. DEFERRED TAXATION

Group

2015
2014

RM000
RM000
Deferred tax liabilities

At 1st January

3
3
Recognised in equity
348

At 31st December
351
3
In the Budget Speech 2014, the Government of Malaysia announced that the domestic statutory income tax
rate would be reduced to 24% from the current years rate of 25% with effect from the year of assessment
2016. The computation of deferred tax as at 31st December 2015 has reflected these changes.

88
Annual Report 2015
(647673-A)
(Continued)
19. DEFERRED TAXATION (CONTINUED)

The estimated deferred tax liabilities of the Group arising from temporary differences recognised in the
financial statements are as follows:
Property, plant Revaluation

and equipment
Surplus

RM000
RM000
Group

At 1st January 2014/ 31st December 2014
3
-

At 1st January 2015

3
-
Recognised in other comprehensive income
-
348


3
348
Total
RM000
3
3
348
351
20. TRADE AND OTHER PAYABLES

2015
2014

RM000
RM000
Group
Trade payables

1,943
889

Other payables
Other payables
251
204
Accruals
10,759
11,786

11,010
11,990

Total trade and other payables
12,953
12,879
Company
Other payables

Other payables
2
Accruals
41

Total other payables

43
12
46
58
Annual Report 2015
(647673-A)
89
(Continued)
20. TRADE AND OTHER PAYABLES (CONTINUED)

(a) Trade payables

Trade payables are non-interest bearing and the normal credit terms granted to the Group and the
Company range from 30 to 90 days (2014: 30 to 90 days).
The foreign currency profile of trade payables is as follows:-
Group

2015
2014

RM000
RM000
Singapore Dollar
1
1
Euro

58
40
US Dollar
93
41
Ringgit Malaysia
1,791
807

1,943
889

(b) Accruals

Included in accruals is an amount of RM10,290,365/- (2014: RM11,561,050/-) representing cost accrued

for mobile messaging gateway solutions services rendered to the Group.
21. DEFERRED INCOME

Deferred income represents prepaid bulk services invoiced but not rendered as at the end of the reporting
period.
22. REVENUE
Group

2015
2014

RM000
RM000
Sales of goods
Rendering of services

9,967
29,557
9,516
33,677
39,524
43,193
23. COST OF SALES AND SERVICES

Group

2015
2014

RM000
RM000
Cost of goods
Cost of services

7,297
25,211
6,819
28,141
32,508
34,960
90
Annual Report 2015
(647673-A)
(Continued)
24. OPERATING LOSS

Operating loss has been arrived at:-
Group
Company

2015
2014
2015
2014

RM000
RM000
RM000
RM000
After charging :-

Audit fees
- current year

145
142
33
- prior year
13
13
3
Bad debts written off
8
36
31
plant and equipment

344
445
-
Depreciation of investment property
18
-
-
Directors remuneration
- fees
144
144
144
- emoluments
863
875
12
Subsidiaries directors remuneration
- fees
6
5
-
- emoluments
423
466
-
Amortisation on intangible assets
64
63
-
Impairment loss on:

- investment in subsidiaries

-
-
1,406
- amount due from subsidiaries
-
-
5,097
Lease rental
14
55
-
Loss on dissolution of
subsidiaries
3
-
-
Loss on disposal of property, plant
and equipment
47
-
-
Loss on foreign exchange
- realised

161
80
-
- unrealised
204
-
-
Personnel expenses
- Employees Provident Fund
428
506
-
- wages, salaries and others

4,089
4,439
-
written off
24
21
-
Rental expenses

154
168
-
Research expenses

85
138
-

And crediting:-

Bad debts recovered
5
-
-
Rental income

-
2
-
Fair value gain on other investments
1
3
-
Gain on foreign exchange
- realised
352
34
-
- unrealised
-
195
-
Gain on disposal of property, plant
and equipment
-
273
-

32
1
10
144
12
812
-
Annual Report 2015
(647673-A)
91
(Continued)
25. FINANCE COSTS, NET

Group
Company

2015
2014
2015
2014

RM000
RM000
RM000
RM000
Interest income

28
74

Interest expenses

- hire purchase interest

(4)
(10)
- term loan interest

(115)
(120)

(119)
(130)

(91)
(56)
18
-
-
18
26. TAXATION
Group
Company

2015
2014
2015
2014

RM000
RM000
RM000
RM000
Income tax
- current year
(329)
(341)
- prior years
(168)
(8)

(497)
(349)
-
-
The income tax rate is calculated at the Malaysian statutory tax rate of 25% of the estimated taxable profit
for the fiscal year. The statutory tax rate will be reduced to 24% from current year is rate 25% with effect from
year of assessment 2016.
A reconciliation of income tax expense applicable to loss before taxation at the statutory income tax rate to
income tax expense at the effective income tax rate of the Group and the Company are as follows: Group
Company

2015
2014
2015
2014

RM000
RM000
RM000
RM000
(1,641)
(914)
(6,844)

Taxation at applicable tax rate
of 25%

410
228
1,711
Tax effects arising from
- tax rates in foreign jurisdictions
35
88
-
- non-deductible expenses
(282)
(140)
(1,711)
- non-taxable income
18
71
-
- utilisation of previous
unrecognised tax losses
-
4
-
- origination of deferred
tax assets not recognised in the
financial statements
(490)
(455)
-
- deferred tax assets not recognised
in difference tax rate
(20)
(137)
-
- under accrual in prior years
(168)
(8)
-

Tax expense for the financial year
(497)
(349)
-
(1,130)
283
(283)
-
92
Annual Report 2015
(647673-A)
(Continued)
26. TAXATION (CONTINUED)

Deferred tax assets have not been recognised in respect of the following items:-
Group

2015
2014

RM000
RM000

Unutilised capital allowances
Unutilised tax losses

Potential deferred tax assets at 24%
(379)
(2,976)
(11,759)
(305)
(2,884)
(9,881)
(15,114)
(13,070)
(3,627)
(3,137)
The availability of the deductible temporary differences, unutilised capital allowances and unutilised tax
losses for offsetting against future taxable profits of the respective subsidiaries are subject to no substantial
changes in shareholdings of those subsidiaries under Section 44(5A) and (5B) of Income Tax Act,1967 and
guidelines issued by the tax authorities. Deferred tax assets have not been recognised in respect of these
items as they may not be used to offset against taxable profits of other subsidiaries in the Group and they
have arisen in subsidiaries that have a recent history of losses.
27. LOSSES PER SHARE
(a) Basic

Basic losses per share is calculated by dividing the net loss for the financial year by the weighted
average number of ordinary shares on issue during the financial year.
Group

2015
2014

RM000
RM000
(1,998)

Weighted average number of ordinary shares (unit):-
Issued ordinary shares at 1st January
196,794
Effect of issuance of ordinary shares
-

Weighted average number of ordinary shares
at 31st December
196,794

Basic losses per share for the financial year (sen)
(1.02)
(1,204)
114,204
71,170
185,374
(0.65)
(b) Diluted

The diluted earnings per ordinary share calculation is not disclosed as the potential ordinary shares
arising from the exercise of warrants at fair value have anti-dilutive effects.
Annual Report 2015
(647673-A)
93
(Continued)
28. PURCHASE OF PROPERTY, PLANT AND EQUIPMENT

Group

2015
2014

RM000
RM000
Purchase of property, plant and equipment
Financed by hire purchase arrangement
Financed by term loan

Cash payments on purchase of property, plant and equipment
232
-
-
1,139
(56)
(765)
232
318
29. OPERATING SEGEMENTS

The Group adopted MFRS 8 Operating Segments which requires the identification of operating segments
on the basis of internal reports that are regularly reviewed by the Groups chief operating decision maker in
order to allocate resources to the segments and assess their performance.
(a) General Information

The information reported to the Groups chief operating decision maker to make decisions about
resources to be allocated and for assessing their performance is based on business segments.
(b) Measurement of Reportable Segments

Segment information is prepared in conformity with the accounting policies adopted for preparing and
presenting the consolidated financial statements.
Transactions between reportable segments are measured on the basis that is similar to those external
customers.
Segment profit or loss is profit earned or loss incurred by each segment without allocation of central
administrative costs, non-operating investment revenue, finance costs and income tax expense. There
are no significant changes from prior financial year in the measurement methods used to determine
reported segment statements of comprehensive income.
All the Groups assets are allocated to reportable segments other than assets used centrally for the
Group, current and deferred tax assets. Jointly used assets are allocated on the basis of the revenues
earned by individual segments.
All the Groups liabilities are allocated to reportable segments other than liabilities incurred centrally for
the Group, current and deferred tax liabilities. Jointly incurred liabilities are allocated in proportion to the
segment assets.
The Group is organised into four major business segments:-
Segments

i. Mobile Services Division
Products and services
- Provision of mobile messaging gateaway solutions and services.

ii. Enterprise Service Division
- Computer system integrators, dealers of computers and its related
products and the provision of related engineering services.

iii. Computing Electronic Services - Performing research and development and the provision of
e-manufacturing solutions and IT oursourcing services.

iv. Other
- Provision of design, development, consulting, marketing supply,
installation, testing and commissioning services for environmental
friendly renewable energy products, and investment holding.

(Continued)
216
14
-
230
(94)
136
Segment results
Results from operating

activities
Interest income
Interest expenses

Taxation
Net loss for the

financial year

1,351
1,689
(338)
1,659
30
-
(3)
(2)
(1)
(2)
-
-
(2)
608
(1,520)
7,059
7,059
-
(276)
(275)
(1)
(2,032)
(1,630)
(402)
(275) (1,520)
-
7
- (117)
(275)
1,332
1,332
-
(1,842)
(1,832)
(10)
(1,704)
-
(128)
(1,704)
6,372
6,372
-
(239)
(239)
-
(244)
7
(2)
(244)
3,668
3,668
-
(496)
(496)
-
(538)
44
(2)
(538)
3,998
3,998
-
-
-
-
-
-
-
-
- (2,138)
- (1,641)
- (497)
- (1,550)
-
28
- (119)
- (1,550)
(1,263)
(914)
(349)
(858)
74
(130)
(858)
- 39,524 43,193
- 39,524 43,193
-
-
-
Annual Report 2015
1,659
31,491
Total segment revenue 28,189
608
-
216
31,491
-
Revenue from external

customers
28,189
Inter-segment revenue
-
Mobile Services
Enterprise
Computing
Division
Service Division Electronic Services
Others
Eliminations
Consolidated
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
(c) Business Segments
29. OPERATING SEGMENTS (CONTINUED)
94
(647673-A)
(Continued)
26,332
Total assets
24,674
24,674
-
274
274
-
1,096 16,182 12,234 19,859 21,248 (35,788) (32,103) 26,859 27,149
1,096 16,182 12,234 19,859 21,248 (35,788) (32,103) 26,859 27,149

-
-
-
-
-
-
-
-
-

Segment liabilities
26,551 23,621 2,075 2,576 11,065 8,667 5,083 5,006 (31,231) (26,988) 13,543 12,882

Unallocated liabilities
131
254
8
171 2,146 2,244
38
49
-
- 2,323 2,718

Total liabilities
26,682 23,875 2,083 2,747 13,211 10,911 5,121 5,055 (31,231) (26,988) 15,866 15,600

Oher information

Capital expenditure
54
58
-
26
170
934
10
131
-
-
234 1,149

plant and equipment
130
143
6
20
187
264
21
18
-
-
344
445
Depreciation of

investment property
-
-
-
-
18
-
-
-
-
-
18
Amortisation of intangible

assets
64
63
-
-
-
-
-
-
-
-
64
63

Other material non-cash

items other than

depreciation

Write-down to net

realisable value

of inventories
-
-
-
-
8
-
97
-
-
-
105
Gain on disposal of

property, plant
and equipment
-
-
-
(1)
- (272)
-
-
-
-
- (273)
Reversal of write-down

of inventories
-
-
-
(5)
(25)
(147)
(6)
-
-
-
(31)
(152)
26,332
-
Segments assets
Unallocated assets
Mobile Services
Enterprise
Computing
Division
Service Division Electronic Services
Others
Eliminations
Consolidated
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000
(c) Business Segments (Continued)
Annual Report 2015
(647673-A)
95
96
Annual Report 2015
(647673-A)
(Continued)

(d) Reconciliation of reportable segment revenues, profit and loss, assets and other material items

Segment assets
2015
2014
RM000
RM000
Total reportable segments

62,647
59,252

Elimination of inter-segment transactions or balances
(35,788)
(32,103)

Consolidated total
26,859
27,149

Segment liabilities
2015
2014
RM000
RM000
Total reportable segments

47,097
42,588

Elimination of inter-segment transactions or balances
(31,231)
(26,988)

Consolidated total
15,866
15,600
(e) Information about a major customers

The following are major customers with revenue equal or more than 10% of the Groups total revenue:

Customer A
Customer B
Customer C
Customer D
Revenue
2015
2014
RM000
RM000
9,835
4,901
4,775
2,738
8,004
3,724
7,652
5,245
Segment
Mobile Services Division

30. RELATED PARTY TRANSACTIONS

(a) Identification of Related Parties

Parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to
control the party or exercise significant influence over the party in making financial and operational
decisions, or vice versa, or where the Group and the party are subject to common control. Related
parties may be individuals or other entities.
Related parties of the Group include:(i) Direct subsidiaries;

(ii) Fellow subsidiaries; and
(iii) Key management personnel which comprise persons (including the directors of the Company)
having the authority and responsibility for planning, directing and controlling the activities of the
Company directly or indirectly.

Annual Report 2015
(647673-A)
97
(Continued)
30. RELATED PARTY TRANSACTIONS (CONTINUED)

(b) Related Party Transactions and Balances

Related party transactions other than disclosed elsewhere in the financial statements are as follows: Group

2015
2014

RM000
RM000
Sales

Purchase
Management fees charged

5,140
(5,099)
(1,996)
5,174
(5,268)
(2,094)
Individually significant outstanding balances arising during the financial year from transactions other
than normal trade transactions with related parties are as follows:-

Company

2015
2014

RM000
RM000
Amount due to a subsidiary
6,341
(30)
11,275
-
(c) Compensation of key management personnel

The remuneration of the key management personnel during the financial year is as follows:-
Group
Company

2015
2014
2015
2014

RM000
RM000
RM000
RM000
Directors
Salaries, bonuses and allowances
1,107
1,151
12
12
Fees

150
149
144
144
Employees Provident Fund
179
190
-

1,436
1,490
156
156

Other key management personnel
Salaries, bonuses and allowances
698
616
-
Employees Provident Fund
84
74
-

782
690
-
31. OPERATING LEASE ARRANGEMENTS

The Group has entered into non-cancellable operating lease arrangements for the use of photocopiers and
office building. The lease is for a period of between 3 to 5 years.
Group

2015
2014

RM000
RM000
Not later than one year

Later than one year but not later than five years

183
98
164
124
281
288
98
Annual Report 2015
(647673-A)
(Continued)
32. MATERIAL LITIGATIONS

The Group is currently engaged in the following material litigations:(a) Civil Suit in the Penang High Court (Civil Suit No. MT1-22-527-2007) against Tan Kim Boon, Tan
Kim Kheng, Lo Mooi Lee, Ang Chai Khee, Ottus Sdn. Bhd. and Oung Lay Choon

The Company and its wholly-owned subsidiaries, Tonerex Technologies Sdn Bhd (TTSB), Tonerex
MSC Sdn Bhd (TMSC) [Now known as Agensi Pekerjaan GenY HR Sdn Bhd] and Mexter (M) Sdn Bhd
(MMSB) (hereinafter referred to as the Plaintiffs) had on 28th August 2007 via their solicitors Messrs.
Skrine filed a civil suit in the Penang High Court against Tan Kim Boon, Tan Kim Kheng, Lo Mooi Lee,
Ang Chai Khee and Ottus Sdn. Bhd. (hereinafter referred to as the Defendants) to, inter alia restrain
the Defendants from unlawfully interfering with or conspiring to injure the business of TTSB and TMSC,
and for:(i)
(ii)
(iii)
(iv)
(v)
(vi)

accounts of profits received;

delivery up and disgorgement of the profits received;
delivery up of assets and documents of TTSB, GenY and MMSB;
damages, including exemplary damages;
interest; and
costs.
In addition, TTSB, TMSC and MMSB had on 28th August 2007 filed an ex-parte application for interim
orders for, inter alia, the following:(i) an injunction restraining the Defendants from further unlawfully interfering with or conspiring to
injure the business of TTSB and TMSC;
(ii) an Anton Piller Order to enter the Defendants residence and premises to inspect, search, make
copies and/or remove to the Plaintiffs solicitors custody, evidence pertaining to the case to be
preserved pending the trial; and
(iii) a Mareva Injunction Order to freeze the accounts and assets of the Defendants pending the trial.
The application for the above ex-parte interim orders were heard and granted before the learned Judge
in the Penang High Court on 3rd September 2007.
The Defendants had filed into the Penang High Court applications seeking orders to set aside the exparte interim orders of 3rd September 2007 and to claim for damages. On 6th August 2008, the Court
dismissed the Defendants setting aside applications and allowed the Plaintiffs inter partes application
for injunctive relief.
The case was then fixed for full trial. When the trial was concluded, the Court then fixed 10th March
2014 for decision.
Judgment for this case was given by the Court on 10th March 2014 where the Judge after considering
all the evidence and submissions by both parties held :That the Plaintiffs have succeeded in proving their case against the Defendants and granted the Plaintiffs
the following reliefs against the Defendants:(a) An injunction restraining the 1st to 5th Defendants or any of them from unlawfully interfering with
the business of the 1st and 2nd Plaintiffs and/or conspiring to injure the business of the 1st and 2nd
Plaintiffs by:(i) Contacting, interfering with, soliciting or any way dealing with the 1st and 2nd Plaintiffs
Customers as set out in Schedule 1 and 2 [as per the 2nd Share Sale Agreement] for a period
of 3 years from the date of this Order;
(ii) Inducing or attempting to induce breaches of contract between the 1st and 2nd Plaintiffs and
their Customers and/or diverting the business of the 1st and 2nd Plaintiffs to themselves for a
period of 3 years from the date of this Order;
Annual Report 2015
(647673-A)
99
(Continued)
32. MATERIAL LITIGATIONS (CONTINUED)

(a) Civil Suit in the Penang High Court (Civil Suit No. MT1-22-527-2007) against Tan Kim Boon, Tan
Kim Kheng, Lo Mooi Lee, Ang Chai Khee, Ottus Sdn. Bhd. and Oung Lay Choon (Continued)
(a) An injunction restraining the 1st to 5th Defendants or any of them from unlawfully interfering with
the business of the 1st and 2nd Plaintiffs and/or conspiring to injure the business of the 1st and 2nd
Plaintiffs by:- (Continued)
(iii) Selling, removing or howsoever dealing with the testers, including all electrical and functional
components of the testers owned or rented by the 2nd and/or 4th Plaintiffs as the case may be;
and
(iv) Holding themselves out as the rightful owner of the testers and tester components belonging or
rented by the 2nd and 4th Plaintiffs as the case may be, and continuing to use, enjoy and profit
from the rental of the testers.
(b) An order that the 1st to 5th Defendants deliver up or cause to be delivered up of all assets and
properties including but not limited to the company records and documents of the 1st and 2nd
Plaintiffs and testers and tester components of the 2nd and 4th Plaintiffs;
(c) General damages of RM 4,935,893/- against the 1st to 5th Defendants jointly and severally;
(d) Exemplary damages of RM 300,000/- against the 1st to 5th Defendants jointly and severally;
(e) Interest on the sum awarded at the rate of 5% per annum from the date of the Court Order to the
date of realisation;
(f) An order that Messrs. Skrine be allowed to pay to the 2nd Plaintiff the RM72,000/- stakeholder
funds given to it by Plexus Manufacturing Sdn Bhd being the outstanding rent arising from the rental
of Tester bearing serial number US34240326; and
(g) Cost of RM 350,000/-.
The Company has been advised by its solicitors that the Defendants have filed a notice of appeal dated
2nd April 2014 which was received on 8th April 2014 in the Court of Appeal against the decision of the
High Court Judge dated 10th March 2014.
The Court of Appeal has fixed 27th August 2014 for the hearing of:(i) The Companys Notice of Motion to strike out the Appellants appeal; and
(ii) The Appellants Notice of Motion for an extension of time to file Part C of their Record of Appeal.
At the hearing held on 27th August 2014, the Court of Appeal has:
(i) Allowed the Appellants/Defendants application to extent time for 3 months to file Part C of their
Record of Appeal, and
(ii) Dismissed the Respondents/Plaintiffs application to strike out the Appellants Notice of Appeal and
incomplete Record of Appeal.
No order of costs was given for both applications.
On 28th October 2014, the High Court has dismissed the Defendants application to stay the order of the
High Court dated 10th March 2014 with cost of RM4,000/- payable jointly and severally by the 1st to 5th
Defendants to the Plaintiffs. On 8th December 2015, the Court of Appeal has adjourned the hearing of
the appeal fixed for 8th December 2015 to 5th January 2016.
100
Annual Report 2015
(647673-A)
(Continued)
32. MATERIAL LITIGATIONS (CONTINUED)

(a) Civil Suit in the Penang High Court (Civil Suit No. MT1-22-527-2007) against Tan Kim Boon, Tan
Kim Kheng, Lo Mooi Lee, Ang Chai Khee, Ottus Sdn. Bhd. and Oung Lay Choon (Continued)
Further, the Court of Appeal has on 5th January 2016 dismissed the Appellants Appeal and also
allowed the Respondents request to withdraw the Cross-Appeal with costs of RM40,000/- to be paid
by the Appellants to the Respondents. Separately, the Court of Appeal also dismissed the Appellants
application to produce further evidence in the Appeal with cost of RM5,000/- to be paid by the Appellants
to the Respondents.
The Defendants have made an application to the Federal Court for leave to appeal against the decision
of the Court of Appeal dated 5th January 2016, and that the said application for leave is fixed for case
management on 31th May 2016.
33. FINANCIAL INSTRUMENTS
(i) Classification of Financial Instruments

Financial assets and financial liabilities are measured on an ongoing basis either at fair value or at
amortised cost. The principal accounting policies in Note 3 describe how classes of financial instruments
are measured, and how income and expense, including fair value gains and losses, are recognised. The
following table analyses the financial assets and liabilities in the statements of financial position by the
class of financial instruments to which they are assigned, and therefore by the measurement basis:

At fair value Financial
through liabilities

profit or
Loans and at amortised

loss receivables
cost

RM000
RM000
RM000
Total
RM000
Group
2015
Financial Assets
Other investments
456
-
-
456
Trade and other receivables*

-
10,907
-
10,907
-
7,834
-
7,834

456
18,741
-
19,197

Financial Liabilities

-
-
12,953
12,953
Borrowings

-
-
2,193
2,193

-
-
15,146
15,146
2014
Financial Assets
Other investments
1,835
-
-
1,835
Trade and other receivables*

-
8,115
-
8,115
-
10,030
-
10,030

1,835
18,145
-
19,980

Financial Liabilities
-
-
12,879
12,879
Borrowings
-
-
2,464
2,464

-
-
15,343
15,343
* Exclude prepayments.
Annual Report 2015
(647673-A)
101
(Continued)
33. FINANCIAL INSTRUMENTS (CONTINUED)

(i) Classification of Financial Instruments (Continued)

At fair value Financial
through liabilities

profit or
Loans and at amortised

loss receivables
cost

RM000
RM000
RM000
Total
RM000
Company
2015
Financial Assets
Other investment

225
-
-
225
Other receivables*
-
1
-
1
-
6,341
-
6,341

-
33
-
33

225
6,375
-
6,600

Financial Liability
Other payables

-
-
43
43
Amount due to a subsidiary

-
-
30
30

-
-
73
73
2014
Financial Assets
Other investment

217
-
-
217
Other receivables*
-
5
-
5

-
11,275
-
11,275

-
510
-
510

217
11,790
-
12,007

Financial Liability
Other payables

-
-
58
58

* Exclude prepayments.
(ii) Financial Risk Management and Objectives

The Group and the Company seeks to manage effectively the various risks namely credit, interest rate,
liquidity and foreign currency risks, to which the Group and the Company are exposed to in their daily
operations.
(a) Credit risk

Trade and other receivables
The Management has a credit control procedure in place to monitor and minimise the exposure of
default. Trade receivables and amount due from subsidiaries are monitored on a regular and an
ongoing basis.
As at the end of the reporting period, the Groups and the Companys significant concentration
of credit risk is disclosed in Note 12(a) to the financial statements. The maximum exposure to
credit risk arising from trade and other receivables is represented by their carrying amounts in the
statements of financial position.
102
Annual Report 2015
(647673-A)
(Continued)

(ii) Financial Risk Management and Objectives (Continued)
(a) Credit risk (Continued)
Financial guarantee contracts
The Company is exposed to credit risk in relation to financial guarantees given to banks in respect
of loans granted to certain subsidiaries. The Company monitors the results of the subsidiaries
and their repayment on an on-going basis. The maximum exposure to credit risks amounts to
RM2,756,000/- (2014: RM2,756,000/-) representing the maximum amount the Company could pay
if the guarantee is called on as disclosed in Note 33(c). As at the reporting date, there was no
indication that the subsidiary would default the repayment.
(b) Interest rate risk
The Groups primary interest rate risk relates to interest-bearing debts as at 31st December 2015.
Effective
interest

rate

%
Within
1 year
RM000
1 -5
years
RM000
> 5
years
RM000
Total
RM000
Group

2015
Financial
Liabilities
Term loan
4.90 - 7.55%
105
478
1,572
2,155
Hire purchase
payables
3.49 - 4.77%
11
27
-
38
2014
Financial
Liabilities
Term loan
4.90 - 7.55%
99
453
1,704
Hire purchase
payables
3.49 - 4.77%
72
136
-
2,256
208
Interest rate risk sensitivity

An increase in market interest rates by 1% on financial assets and financial liabilities of the Group
which have variable interest rates at the end of the reporting period would decrease the profit before
tax by RM21,550/- (2014: RM22,560/-). This analysis assumes that all other variables remain
unchanged.
A decrease in market interest rates by 1% on financial assets and liabilities of the Group which have
variable interest rates at the end of the reporting period would have had the equal but opposite
effect on the amounts shown above, on the basis that all other variables remain unchanged.
(c) Liquidity risk
Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial
obligations due to shortage of funds. The Groups and the Companys exposure to liquidity risk
arises primarily from mismatches if the maturities of financial assets and liabilities. The Groups
and the Companys objectives is to maintain a balance between continuity of funding and flexibility
through the use of stand-by credit facilities.
The Group and the Company manage their operating cash flows by maintaining sufficient level
of cash to meet its working capital requirements and availability of funding through an adequate
amount of credit facilities.
Annual Report 2015
(647673-A)
103
(Continued)

(c) Liquidity risk (Continued)

Analysis of financial instruments by remaining contractual maturities
The table below summaries the maturity profile of the Groups and the Companys liabilities at the
end of the reporting period based on contractual repayment obligations.
Contractal On demand
One to More than

Carrying Undiscounted
or within
five
five
Amount Cash Flows one year
years
years
RM000 RM000 RM000 RM000 RM000
Group
2015
Trade and other
payables

12,953
12,953
12,953
-
Borrowings

2,193
3,195
228
888
2,079

15,146
16,148
13,181
888
2,079
2014
Trade and other
payables

12,879
12,879
12,879
-
Borrowings

2,464
3,577
295
1,001
2,281

15,343
16,456
13,174
1,001
2,281
Company
2015
Other payables
43
43
43
-
Financial guarantee
contracts

-
2,756
2,756
-

43
2,799
2,799
-

2014
Other payables
58
58
58
-
Financial guarantee
contracts

-
2,756
2,756
-

58
2,814
2,814
-
-
104
Annual Report 2015
(647673-A)
(Continued)

(d) Foreign currency risk

The Group is exposed to foreign currency risk on sales and purchases that are denominated in a
currency other than Ringgit Malaysia. The currencies giving rise to this risk are primarily Indonesian
Rupiah, Euro, Singapore Dollar, Thai Baht, Taiwan Dollar and US Dollar. In the management of
foreign currency risk, the Group does not hedge these exposures by purchasing forward currency
contracts.
The Group is also exposed to foreign currency risk in respect of its investment in foreign subsidiaries.
The Company does not hedge this exposure by having foreign currency borrowings in view of the
insignificant amount of investment in the foreign subsidiaries.
Foreign currency risk sensitivity
A 10% strengthening of Ringgit Malaysia against the following foreign currencies at the end of
the reporting period would increase the profit before tax and other comprehensive income by the
amounts shown below. This analysis assumes that all other variables remain unchanged.
Group

Total increase

2015
2014

RM000
RM000
Euro

Singapore Dollar

Thai Baht
US Dollar

Hong Kong Dollar

Taiwan Dollar

China Renminbi

6
(26)
(513)
(15)
(1)
(1)
(2)
4
(28)
(675)
(88)
(1)
(2)
A 10% weakening of Ringgit Malaysia against the foreign currency at the end of the reporting period
would have had the equal but opposite effect on the amounts shown above, on the basis that all
other variables remain unchanged.
(iii) Fair Values of Financial Instruments

Determination of Fair Value
The methods and assumptions used to determine the fair value of the following classes of financial
assets and liabilities are as follows:(a) Cash and bank balances, trade and other receivables and payables

The carrying amounts of cash and bank balances, trade and other current receivables and payables
are reasonable approximation of fair values due to short term nature of these financial instruments.
(b) Borrowings

The carrying amounts of the current portion of borrowings are reasonable approximation of fair
values due to the insignificant impact of discounting.
The carrying amounts of long term floating rate loans are reasonable approximation of fair values
as the loans will be re-priced to market interest rate on or near reporting date.
Annual Report 2015
(647673-A)
105
(Continued)

(iv) Fair value measurement

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, the lowest level input that is significant
to the fair value measurement as a whole:(a) Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active
markets for identical assets or liabilities;
(b) Level 2 fair value measurements are those derived from inputs other than quoted prices included
within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices); and
(c) Level 3 fair value measurements are those derived from inputs for the asset or liability that are not
based on observable market data (unobservable inputs).
Except for unit trusts, the carrying amounts of the financial assets and liabilities of the Group and of the
Company at the reporting date approximated or were at their fair values.
Fair value of financial instruments carried

at fair value Carrying

Level 1
Level 2
Level 3
Total amount
RM000 RM000 RM000 RM000 RM000
Group
2015
Financial asset
Unit trusts

456
-
-
456
456
2014
Financial asset
Unit trusts

1,835
-
-
1,835
1,835

Company
2015
Financial asset
Unit trusts

225
-
-
225
225

2014
Financial asset
Unit trusts

217
-
-
217
217
Policy on transfer between levels
The fair value of asset to be transferred between levels is determined as of the date of the event or
change in circumstances that caused the transfer.
During the financial year ended 31st December 2015 and 2014, there was no transfer between the fair
value measurement hierarchy.

106
Annual Report 2015
(647673-A)
(Continued)
34. CAPITAL MANAGEMENT

The primary objective of the Groups and the Companys capital management is to ensure that it maintains a
strong credit rating and healthy capital ratio in order to support its business and maximise shareholder value.
The Group and the Company manage their capital structure and makes adjustments to it, in light of changes
in economic conditions. To maintain or adjust the capital structure, the Group and the Company may adjust
the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes
were made in the objectives, policies or processes during the years ended 31st December 2015 and 31st
December 2014.
The Group and the Company monitor capital using a gearing ratio, which is net debt divided by total capital
plus net debt. The Groups and the Companys policy is to keep the gearing ratio between 20% to 65%. The
Group and the Company include within its net debt, borrowings, trade and other payables, less cash and
bank balances. Capital includes equity attributable to the owners of the Company.
Group

2015
2014

Note
RM000 RM000
Borrowings
20
18
12,953
2,193
12,879
2,464

15,146
15,343

Less: Cash and bank balances
14
(7,834)
(10,030)

Net debt
7,312
5,313

Equity attributable to owners of the Company
10,608
11,020

Capital and net debt
17,920
16,333

Gearing ratio

40.8%
32.5%

The Group is also required to comply with the disclosure and necessary capital requirements as prescribed
in the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad.
Annual Report 2015
(647673-A)
107
SUPPLEMENTARY INFORMATION ON THE DISCLOSURE OF

REALISED AND UNREALISED PROFITS OR LOSSES
On 25th March 2010, Bursa Malaysia Securities Berhad (Bursa Malaysia) issued a directive to all listed issuers
pursuant to Paragraphs 2.07 and 2.23 of Bursa Malaysia ACE Market Listing Requirements. The directive requires
all listed issuers to disclose the breakdown of the unappropriated profits or accumulated losses as at the end of
the reporting period, into realised and unrealised profits or losses.
On 20th December 2010, Bursa Malaysia further issued another directive on the disclosure and the prescribed
format of presentation.
Pursuant to the directive, the amounts of realised and unrealised profits or losses included in the accumulated
losses of the Group and the Company as at 31st December 2015 are as follows: Group
Company

2015
2014
2015
2014

RM000
RM000
RM000
RM000
Total accumulated losses of the
Company and its subsidiaries
- realised
(31,280)
(22,075)
(24,981)
- unrealised
(203)
194
-

(31,483)
(21,881)
(24,981)
Less: Consolidation adjustments

6,573
(1,031)
-

Total accumulated losses

(24,910)
(22,912)
(24,981)

(18,137)
(18,137)
(18,137)
The determination of realised and unrealised profits is based on Guidance of Special Matter No. 1, Determination
of Realised and Unrealised Profits and Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities
Berhad Listing Requirements, issued by the Malaysian Institute of Accountants on 20th December 2010.
The disclosure of realised and unrealised profits above is solely for complying with the disclosure requirements
stipulated in the directive of Bursa Malaysia and should not be applied for any other purposes.
108
Annual Report 2015
(647673-A)
STATEMENT BY DIRECTORS
We, IVAN SIA TECK FATT and KUAN KHIAN LENG, being two of the Directors of Mexter Technology Berhad,
do hereby state that in the opinion of the Directors, the accompanying financial statements set out on pages 42
to 106 are properly drawn up in accordance with the Malaysian Financial Reporting Standards, International
Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia so as to give a true
and fair view of the financial position of the Group and of the Company as at 31st December 2015 and of the
financial performance and cash flows of the Group and of the Company for the financial year ended on that date.
The supplementary information set out on page 107 has been prepared in accordance with the Guidance of Special
Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant
to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants.
On behalf of the Board,
.......................................................
IVAN SIA TECK FATT
Managing Director
...................................................
KUAN KHIAN LENG
Director
Kuala Lumpur
Date: 13 April 2016
Annual Report 2015
(647673-A)
109
STATUTORY DECLARATION
I, LIM SIOW FAI, being the officer primarily responsible for the financial management of Mexter Technology
Berhad, do solemnly and sincerely declare that to the best of my knowledge and belief, the financial statements
set out on pages 42 to 106, and the supplementary information set out on page 107 are correct, and I make this
solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory
Declarations Act, l960.
........................................................
LIM SIOW FAI
Subscribed and solemnly declared by the abovenamed at Kuala Lumpur in the Federal Territory on 13 April 2016.
.
Before me,
..........................................................
Commissioner for Oaths
110
Annual Report 2015
(647673-A)
TO THE MEMBERS OF MEXTER TECHNOLOGY BERHAD (Incorporated in Malaysia)

Report on the Financial Statements
We have audited the financial statements of Mexter Technology Berhad, which comprise the statements of financial
position as at 31st December 2015 of the Group and of the Company, and the statements of comprehensive
income, statements of changes in equity and statements of cash flows of the Group and of the Company for the
financial year then ended, and a summary of significant accounting policies and other explanatory information,
as set out on pages 42 to 106.
Directors Responsibility for the Financial Statements
The Directors of the Company are responsible for the preparation of financial statements so as to give a true
and fair view in accordance with the Malaysian Financial Reporting Standards, International Financial Reporting
Standards and the requirements of the Companies Act, 1965 in Malaysia. The Directors are also responsible for
such internal controls as the Directors determine are necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgement, including the assessment of risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we
consider internal controls relevant to the Companys preparation of the financial statements that give a true and
fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Companys internal controls. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the
Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Group and of the
Company as at 31st December 2015 and of their financial performance and cash flows for the financial year
then ended in accordance with the Malaysian Financial Reporting Standards, International Financial Reporting
Standards and the requirements of the Companies Act, 1965 in Malaysia.
Report on other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:(a) In our opinion, the accounting and other records and the registers required by the Companies Act, 1965 in
Malaysia to be kept by the Company and its subsidiaries of which we have acted as auditors have been
properly kept in accordance with the provisions of the Companies Act, 1965 in Malaysia.
(b) Other than those subsidiaries without the auditors reports as disclosed in Note 8 to the financial statements,
we have considered the financial statements of the subsidiaries and the auditors reports of the remaining
subsidiaries of which we have not acted as auditors, which are indicated in Note 8 to the financial statements.
(c) We are satisfied that the financial statements of the subsidiaries that have been consolidated with the
Companys financial statements are in a form and content appropriate and proper for the purposes of the
preparation of the financial statements of the Group and we have received satisfactory information and
explanations required by us for those purposes.
(d) Other than those subsidiaries without the auditors reports as disclosed in Note 8 to the financial statements,
the auditors reports on the financial statements of the remaining subsidiaries did not contain any qualification
or any adverse comment made under Section 174(3) of the Companies Act, 1965 in Malaysia.
Annual Report 2015
(647673-A)
111
TO THE MEMBERS OF MEXTER TECHNOLOGY BERHAD (Incorporated in Malaysia)(Continued)

Other Reporting Responsibilities
The supplementary information set out in page 107 is disclosed to meet the requirement of Bursa Malaysia
Securities Berhad and is not part of the financial statements. The Directors are responsible for the preparation
of the supplementary information in accordance with the Guidance on Special Matter No. 1, Determination of
Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities
Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants (MIA Guidance) and the
directive of Bursa Malaysia Securities Berhad. In our opinion, the supplementary information is prepared, in all
material respects, in accordance with the MIA Guidance and the directive of Bursa Malaysia Securities Berhad.
Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the
Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person
for the contents of this report.
Baker Tilly Monteiro Heng

No. AF 0117
Chartered Accountants
Kuala Lumpur
Date: 13 April 2016
Tan Ban Tatt

No. 3099/03/18(J)
Chartered Accountant
112
Annual Report 2015
(647673-A)
LIST OF PROPERTIES HELD

The details of the properties of Mexter Group as at the 31 December 2015
Location
Description/
Existing use
Tenure
Date of
acquisition
Approximat
age of
building
(years)
H.S.(M) 441 for P.T

No.4787 in the Mukim of
Bachang, District of Melaka
3-storey
shophouse
used as Melaka
branch office for
sales, support &
engineering
Freehold
16.12.1994
21
1,561
4,620
270,000
Office suite used

as corporate
office
Freehold
28.12.2007
4,314
3,500,000
Office suite used

for rent
Freehold
21.10.2013
1,288
866,000
Bearing the postal address

No.15, 1-15, 2-15
Jalan Bachang Jaya 1,
Taman Bachang Jaya,
Off Jalan Tun Fatimah
75250 Melaka
Parcel No. L-05-01 within
Storey No. 05 of Block L,
with accessory parcel No.
AAC-L-05-01-1 held under
Master title no. H.S.(D)
110710 for P.T. No. 22129,
Mukim Batu, Daerah Kuala
Lumpur, Negeri Wilayah
Persekutuan
Land Built-up Audited

area
area
NBV as at
(square (square 31.12.2015
feet)
feet)
(RM)

L-05-01, No. 2 Jalan
Solaris, Solaris Mont Kiara,
50480 Kuala Lumpur
Parcel No. L-05-02 within
Storey No. 05 of Block L,
with accessory parcel No.
AAC-L-05-01-1 held under
Master title no. H.S.(D)
110710 for P.T. No. 22129,
Mukim Batu, Daerah Kuala
Lumpur, Negeri Wilayah
Persekutuan
L-05-02, No. 2 Jalan
Solaris, Solaris Mont Kiara,
50480 Kuala Lumpur.
Annual Report 2015
(647673-A)
113
Analysis of Shareholdings
AS AT MARCH 31, 2016
SHARE CAPITAL
Authorized
Issued and Fully paid-up
Class of Share
Number of Shareholders
:
:
:
:
RM50,000,000.00
RM19,679,444.00
Ordinary Shares of RM0.10 each with equal voting rights
1,074
DISTRIBUTION OF SHAREHOLDERS
Holdings
No. of Holders
Total Holdings
6
108
394
437
126
3
202
82,041
2,231,400
18,334,500
84,702,330
91,443,967
0.00
0.04
1.13
9.32
43.04
46.47
1,074
196,794,440
100.00
No. of Holders
Total Holdings
1 - 99
100 - 1,000
1,001 - 10,000
10,001 100,000
100,001 4,472,600
4,472,601 and above
1
14
72
203
166
0
3
7,517
482,900
11,649,900
77,311,700
0
0.00
0.01
0.54
13.02
86.43
0.00
Total
456
89,452,020
100.00
1 - 99
100 - 1,000
1,001 - 10,000
10,001 100,000
100,001 9,839,721
9,839,722 and above
Total
WARRANTS
Unit of Warrants in Issue
Number of Warrantholders
:
:
89,452,020
456
DISTRIBUTION OF WARRANTS
Holdings
THIRTY LARGEST ORDINARY SHARES ACCOUNT HOLDERS

Name
Shareholdings
1.
Kuan Khian Leng
51,554,100 26.20
2.
Ivan Sia Teck Fatt
21,213,467 10.78
3.
CIMSEC Nominees (Asing) Sdn Bhd

Qualifier: Exempt An For CIMB Securities (Singapore) Pte Ltd (Retail Clients)
18,676,400
9.49
4.
Maybank Securities Nominees (Tempatan) Sdn Bhd

Qualifier: Pledged Securities Account For Yock Wan Ching (MARGIN)
7,288,100
3.70
5.
Chang Mei Yun
6,100,000
3.10
6.
CIMSEC Nominees (Tempatan) Sdn Bhd

Qualifier: CIMB Bank For Tee Chee Chiang (M55008)
5,037,500
2.56
7.
Yayasan Bina Upaya Darul Ridzuan
5,000,000
2.54
8.
Alliancegroup Nominees (Tempatan) Sdn Bhd

Qualifier: Pledged Securities Account For Tee Chee Chiang (8073610)
4,728,600
2.40
114
Annual Report 2015
(647673-A)
AS AT MARCH 31, 2016 (Continued)
THIRTY LARGEST ORDINARY SHARES ACCOUNT HOLDERS (Continued)

Name
Shareholdings
9.
TA Nominees (Tempatan) Sdn Bhd

Qualifier: Pledged Securities Account For Ting Leong Hua
3,831,000
1.95
10.
Lau Choon Xian
3,278,080
1.67
11.
Affin Hwang Nominees (Tempatan) Sdn. Bhd.

Qualifier: Pledged Securities Account For Teh Aik Kong (TEH1048C)
2,415,205
1.23
12.
Chou, Ying-Hsien
2,368,900
1.20
13.
Khairul Azwan Bin Harun
2,300,000
1.17
14.

Qualifier: Pledged Securities Account For Bong Lui Mui (REM 132)
2,281,000
1.16
15.
Chow Chui Mei
1,801,540
0.92
16.
Ngeow Zoo Gin
1,789,040
0.91
17.
Alliancegroup Nominees (Tempatan) Sdn Bhd

Qualifier: Pledged Securities Account For Goh Nai Kooi @ Gah Mai Kwai
(8119540)
1,604,160
0.82
18.
Maybank Nominees (Tempatan) Sdn Bhd

Qualifier: Lai Pin Yong
1,604,160
0.82
19.
Tan Kim Boon
1,503,445
0.76
20.
Public Nominees (Tempatan) Sdn Bhd

Qualifier: Pledged Securities Account For Cheah Chee Leong (E-BCG)
1,289,040
0.66
21.
M N C Wireless Berhad
1,096,900
0.56
22.
Chan Lai Ling
1,056,400
0.54
23.

Qualifier: Pledged Securities Account For Fong Kin Chong (FON0170C)
934,000
0.47
24.
Yap Siew Seong
898,080
0.46
25.
Fu Ching Xiong
814,000
0.41
26.
Goh Sim Geh
803,500
0.41
27.

Qualifier: Pledged Securities Account For Leou Thiam Lai (M09)
700,000
0.36
28.
Lee Kok Hoong
659,200
0.33
29.
Chuah Kim Lee
620,000
0.32
30.
Maybank Nominees (Tempatan) Sdn Bhd

Qualifier: Hamzah Bin Mohd Noor
602,000
0.31
THIRTY LARGEST WARRANTS ACCOUNT HOLDERS

Name
1.

2.
3.
4.
5.

6.
7.

TA Nominees (Tempatan) Sdn Bhd

Qualifier: Pledged Securities Account For Ting Leong Hua
Tan Guan Eng @ Tan Siew Ying
Abdul Haniff Bin Sulaiman
GV Asia Fund Limited
Qualifier: Pledged Securities Account For Vincent Phua Chee Ee
Son Kat Pee @ Soin Kat Pee
Kok Yoon Yeen
Warrant holdings
4,162,000
4.65
2,331,000
2,279,900
2,000,000
2,000,000
2.61
2.55
2.24
2.24
2,000,000
1,907,600
2.24
2.13
Annual Report 2015
115
(647673-A)
THIRTY LARGEST WARRANTS ACCOUNT HOLDERS (Continued)

Name
Warrant holdings
8. Gan Keng Meng

1,600,000
9. HLIB Nominees (Tempatan) Sdn Bhd
1,500,000

Qualifier: Pledged Securities Account For Lee Eng Min (CCTS)
10. Ho Chew Moy
1,500,000
11. Maybank Nominees (Tempatan) Sdn Bhd

Qualifier: Tay Soo Cheng
1,500,000
12. Foong Wai Chee
1,250,000
13. Ng Yew Choy
1,200,000
14. JF Apex Nominees (Tempatan) Sdn Bhd
1,169,900

Qualifier: Pledged Securities Account For Mokhire Azmani Bin Mohamed (STA 2)
15. Chia Boon Seng
1,135,700
16. Rachel Lai
1,050,000
17. Kua Cheng Hock
1,000,000
18. Tan Yan Zi
1,000,000
19. Ang Yook Chu @ Ang Yoke Fong
988,800
20. Lee Kok Hoong
959,200
21. Mohd Narodi Bin Mat Ali
942,900
22. Lau Fui Seng
793,100
23. Lee Eng Min
773,000
24. Maybank Securities Nominees (Asing) Sdn Bhd
757,000

Qualifier: Pledged Securities Account For Anpalagan Thangavelautham (MARGIN)
25. Ong Boon Tong
722,000
26. Tan Hui Koon
700,000
27. Maybank Nominees (Tempatan) Sdn Bhd

Qualifier: Chia Boon Seng
675,300
28. Tang Ha Looi @ Tang Kim Ying
610,000
29. Wong Chong Yeow
606,500
30. Chong Yee Ling
600,000
1.79
1.68
1.68
1.68
1.40
1.34
1.31
1.27
1.17
1.12
1.12
1.11
1.07
1.05
0.89
0.86
0.85
0.81
0.78
0.75
0.68
0.68
0.67
SUBSTANTIAL SHAREHOLDERS
Name
1. Ivan Sia Teck Fatt
2. Kuan Khian Leng
Direct No. of shares held
Indirect No. of shares held
21,213,467
51,554,100
10.78
26.20
116
Annual Report 2015
(647673-A)
DIRECTORS SHAREHOLDINGS
Name
2. Kuan Khian Leng
3 Dato Hj Mohammad Mokhtar
Bin Hj Hasann
4. Andrew Su Meng Kit
5. Yee Teck Fah
Direct No. of shares held
Indirect No. of shares held
21,213,467
51,554,100
-
10.78
26.20
-
Direct No. of unit held
Indirect No. of unit held
3
-
0.00
-
DIRECTORS WARRANTHOLDINGS
Name
2. Kuan Khian Leng
3 Dato Hj Mohammad Mokhtar
Bin Hj Hasan
4. Andrew Su Meng Kit
5. Yee Teck Fah
MEXTER TECHNOLOGY BERHAD

(Company No. 647673-A)
(Incorporated in Malaysia)
No of ordinary shares held
PROXY FORM
I/We,
of
being a
Member of the above Company hereby appoint (Proxy 1)
of
and*/or failing him* (Proxy 2),
of
and*/or failing him*, the Chairman of the Meeting, as my/our proxy(ies), to vote for me/us on my/our behalf at the TWELFTH
ANNUAL GENERAL MEETING of the Company to be held at Dewan Perdana, Bukit Kiara Equestrian & Country Resort, Jalan
Bukit Kiara, Off Jalan Damansara, 60000 Kuala Lumpur, on Thursday, 16 June 2016 at 9.00 a.m. and at any adjournment
thereof as indicated below.
The proportions of my/our holdings to be represented by my/our proxy(ies) are as follows:Proxy 1 -
% In case of a vote by show of hands, Proxy 1*/Proxy 2* shall vote on
Proxy 2 -
% my/our behalf.
100%
* Strike out whichever is inapplicable

(Please indicate with an X in the space provided above on how you wish your vote to be cast. If you do not do so, the proxy
will vote or abstain from voting at his discretion)
RESOLUTIONS
1.
FOR
AGAINST
To approve the payment of Directors Fees of up to RM133,500 for the financial period
ending 31 March 2017.
To re-elect the following directors retiring under the respective provision of the Articles of
Association of the Company, and who being eligible, offered themselves for re-election:-
2.
Ivan Sia Teck Fatt
Article 98(1)
3.
Yee Teck Fah
Article 98(1)
4.
To re-appoint Messrs. Baker Tilly Monteiro Heng as Auditors of the Company for the
ensuing year and to authorise the Directors to fix their remuneration.
To pass the following resolutions as Special Business :Ordinary Resolutions

5.
To authorise Andrew Su Meng Kit to continue to serve as Senior Independent NonExecutive Director of the Company.
6.
To authorise Dato Hj Mohammad Mokhtar Bin Hj Hasan to continue to serve as

Independent Non-Executive Chairman of the Company.
7.
Authority to Issue Shares pursuant to Section 132D of the Companies Act, 1965.
Signature of Shareholder(s) .
Signed this ......... day of...., 2016.
Proxy
1.
For the purpose of determining a member who shall be entitled to attend and vote at the AGM, the Company shall be requesting the Record of Depositors
as at 9 June 2016. Only a depositor whose name appears on the Record of Depositors as at 9 June 2016 shall be entitled to attend, speak and vote at the
said meeting as well as for appointment of proxy(ies) to attend and vote on his/her stead.
2.
A proxy may but need not be a member of the Company and the provision of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company.
3.
A member shall be entitled to appoint more than one (1) proxy to attend and vote at the same meeting. Where a member appoints more than one (1) proxy,
the appointment shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy.
4.
If the appointor is a corporation, this form must be executed under its Common Seal or under the hand of its attorney.
5.
Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one
securities account (omnibus account), there is no limit to the number of proxies which the exempt authorized nominee may appoint in respect of each
omnibus account it holds.
6.
To be valid this form duly completed must be deposited at the Registered Office of the Company at L-05-01, No. 2 Jalan Solaris, Solaris Mont Kiara, 50480
Kuala Lumpur not less than forty-eight (48) hours before the time for holding the meeting.
FOLD THIS FLAP FOR SEALING
FOLD HERE
Affix
stamp
The Company Secretary
Mexter Technology Berhad (647673-A)
L-05-01, No. 2 Jalan Solaris,

Solaris Mont Kiara,
50480 Kuala Lumpur, Malaysia.
FOLD HERE
(647673-A)
L-05-01, No. 2 Jalan Solaris, Solaris Mont Kiara, 50480 Kuala Lumpur, Malaysia.
www.mexter.com.my

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2015

TOUCHING LIVES, IMPROVING LIFE.

Mexter Technology Berhad

Annual Repor t 2015

Vision, Missions & Values

Mexter Technology Berhad

Annual Repor t 2015

Mobile Bulk Services

Mexter Technology Berhad

Annual Repor t 2015

NOTICE OF ANNUAL GENERAL MEETING

b) Authority to Issue Shares

Mexter Technology Berhad

Annual Repor t 2015

NOTICE OF ANNUAL GENERAL MEETING

Mexter Technology Berhad

Annual Repor t 2015

NOTICE OF ANNUAL GENERAL MEETING

Mexter Technology Berhad

Annual Repor t 2015

Profit/(loss) before tax

Profit/(loss) after tax & Noncontrolling Interests

Property, plant and equipment

Earnings per share (sen)

Net Assets per share (sen)

Mexter Technology Berhad

Annual Repor t 2015

Mexter (M) Sdn. Bhd.

Mexter MSC Sdn. Bhd.

Mexter International Limited

Tonerex Technologies Sdn. Bhd.

MexComm Sdn. Bhd.

49% Mobile Holding Ltd

Mexter (S) Pte. Ltd

Ezy M Holding Ltd

MexComm Corporation (Thailand) Ltd

Ezymobile International Sdn Bhd

90% P.T. MexComm

Agensi Pekerjaan GenY Hr Sdn. Bhd.

Adios Interactive Sdn. Bhd.

Mexter SunOasis Sdn Bhd

Locktech International Sdn. Bhd.

Mexter Technology Berhad

Annual Repor t 2015

The corporate structure of Mexter Group as of 31 December 2015 is as follow:

Mexter (M) Sdn. Bhd.

Provision of IT solutions and IT outsourcing services.

Mexter MSC Sdn. Bhd.

Performing R&D and the provision of e-manufacturing

Mexter International Limited

Tonerex Technologies Sdn. Bhd.

Dealers of test probes, jigs & fixtures solutions,

MexComm Sdn. Bhd.

Provision of mobile messaging gateway solutions and

Adios Interactive Sdn. Bhd

Providing mobile and web applications developments;

Mexter SunOasis Sdn. Bhd.

Dealers of sustainable energy and services

Locktech International Sdn Bhd

Dealers of electronic and security products and building

Provision of IT solutions and IT outsourcing services.

Ezymobile International Sdn. Bhd.