ETITECH-AnnualReport2011 (913KB)

CONTENTS
02 03 04 05 - 07 08 - 09 10 - 13 14 - 16 17 18 19 20 58 59 - 60 61 - 62 63 CORPORATE VISION, MISSION, OBJECTIVES AND STRATEGY CORPORATE INFORMATION CORPORATE STRUCTURE, PRINCIPAL ACTIVITIES PROFILE OF DIRECTORS CHAIRMANS STATEMENT CORPORATE GOVERNANCE STATEMENT AUDIT COMMITTEE REPORT STATEMENT ON INTERNAL CONTROL DISCLOSURE REQUIREMENTS STATEMENT OF DIRECTORS RESPONSIBILITIES FINANCIAL STATEMENTS LIST OF PROPERTY STATISTICS OF SHAREHOLDINGS NOTICE OF ANNUAL GENERAL MEETING PROXY FORM
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ETI TECH CORPORATION BERHAD (667845-M)
CORPORATE VISION, MISSION, OBJECTIVES AND STRATEGY
CORPORATE VISION
To excel as an energy solution provider through technology innovation.
CORPORATE MISSION
Provide shareholder value through the exploitation of the corporate asset in terms of revenue, earnings, cost reduction and time to market opportunities, and product innovation.
CORPORATE OBJECTIVES
Our three main corporate objectives are: To emerge as a premier international design house for rechargeable energy solutions. To develop an international distribution network. To build a strong internationally recognized brand.
BUSINESS STRATEGY
To align with green energy policy adopted by Malaysian government on the promotion and use of environmental friendly battery cells for global customers.
OUR COMMITMENT
You are assured of advance design, superior quality and competitive pricing when you purchase our products.
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CORPORATE INFORMATION
BOARD OF DIRECTORS Dato Ahmad Shukri Bin Tajuddin Independent Non-Executive Chairman Lee Kah Kheng Managing Director Dato Dennis Chuah Executive / Business Development Director Khor Yee Kwang Executive Director Nordin Bin Mohamad Desa Independent Non-Executive Director Baqir Hussain Bin Hatim Ali Independent Non-Executive Director Lim Mei Theng Non-Independent Non-Executive Director (Appointed w.e.f. 30 December 2011) Iqbal Yousuf Habib Al Yousuf Non-Independent Non-Executive Director (Resigned w.e.f. 27 December 2011) AUDIT COMMITTEE Nordin Bin Mohamad Desa Chairman Baqir Hussain Bin Hatim Ali Dato Ahmad Shukri Bin Tajuddin REMUNERATION COMMITTEE Baqir Hussain Bin Hatim Ali Chairman Nordin Bin Mohamad Desa Lee Kah Kheng NOMINATION COMMITTEE Baqir Hussain Bin Hatim Ali Chairman Nordin Bin Mohamad Desa Dato Ahmad Shukri Bin Tajuddin COMPANY SECRETARY How Wee Ling (MAICSA 7033850) Ooi Ean Hoon (MAICSA 7057078) HEAD OFFICE Lot No. 12, Industrial Zone Phase II Kulim Hi-Tech Park 09000 Kulim Kedah Darul Aman Tel : +60 (4) 403 1828 Fax : +60 (4) 403 6828 E-mail : info@etitech.com.my Website : www.etitech.com.my REGISTERED OFFICE 57-G Persiaran Bayan Indah Bayan Bay, Sungai Nibong 11900 Penang Tel : 604 640 8933 Fax : 604 643 8911 SHARE REGISTRAR Securities Services (Holdings) Sdn. Bhd. Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur Tel : 603 2084 9000 Fax : 603 2094 9940 AUDITORS Messrs. UHY Suite 11.05, Level 11, The Gardens South Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, Malaysia. SOLICITOR Messrs. Zaid Ibrahim & Co PRINCIPAL BANKERS Malayan Banking Berhad Hong Leong Bank Berhad Standard Chartered Bank Malaysia Berhad STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Berhad Stock Code: ETITECH (0118)
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CORPORATE STRUCTURE
ETI TECH CORPORATION BERHAD

(ETICB or the Company) and Subsidiaries (ETICB Group or the Group) as at 3 January 2012
ETI Tech Corporation Berhad (ETICB)
ETI Tech (M) Sdn Bhd (ETI Tech) (A Wholly-Owned Subsidiary Company of ETICB)
ETI Tech International Sdn Bhd (A Wholly-Owned Subsidiary Company of ETICB)
ETI Tech Homes Sdn Bhd (A 51%-Owned Subsidiary Company of ETICB)
Power Mac Sdn Bhd (A Wholly-Owned Subsidiary Company of ETI Tech)
PRINCIPAL ACTIVITIES
ETI Tech Corporation Berhad (ETICB) is principally involved in investment holding and provision of management services. The subsidiaries of ETICB as at 3 January 2012 were as follows: Date and Place of Incorporation 30 July 2002/ Malaysia Date of Acquisition 30 July 2005 Effective Equity Interest 100%
Name ETI Tech (M) Sdn Bhd (ETI Tech)
Principal activities R&D of BMS technology, as well as the design and marketing of the resulting battery packs and portable power packs for rechargeable energy storage solutions. Intended to carry out business of manufacturer and assembler in relation to the Lithium-Ion Cells and Battery Packs. Intended to carry out investment holding and to carry out its international procurement / sourcing function for the Group. Intended to carry out business activities in relation to Green Homes, more particularly setting up the energy supply of the Green Homes.
Power Mac Sdn Bhd (A wholly owned subsidiary of ETI Tech)
21 March 2005/ Malaysia
20 July 2006
100%
ETI Tech International Sdn Bhd
14 March 2006/ Malaysia
20 July 2006
100%
ETI Tech Homes Sdn. Bhd.
3 January 2012 / Malaysia
3 January 2012
51%
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PROFILE OF DIRECTORS
Dato Ahmad Shukri Bin Tajuddin Independent Non-Executive Chairman Malaysian, aged 52 Member of Audit Committee Member of Nomination Committee Dato Ahmad Shukri was appointed to the Board on 28 October 2008. He holds a Bachelor of Science degree in Accountancy from University of Missouri, Columbia, USA and was awarded a Master of Business Administration (MBA) from Greenwich University, Australia. He has over 27 years experience in various capacities in private as well as government sector and has accumulated vast experience in property, construction, business and technology development. He was appointed to the Kulim Technology Park Corporations (KTPC) Board of Directors in 1996 and had served as Managing Director until 2000, when he was then appointed the Group Managing Director / Chief Executive Officer of KTPC Group of Companies until September 2008. As a co-founder of KTPC, he was responsible for the overall implementation of the KHTP development Master Plan. Together with his team of professionals at KTPC, he has built from the ground up into one of Asias best science and technological parks. As a premier technology park in Malaysia, KHTP was conferred a Cybercity Status in 2006. Besides travelling extensively worldwide and locally to market KHTP to high tech companies, he has also created upstream and downstream industrial / technological activities that are inter-complementary for the further development of KHTP. He enjoys strong rapport with all the multinational and local companies present in KHTP. He is now the Chief Executive Officer and a member of the Board of Senai Hi-Tech Park, the second hi-tech park for the country. He also sits as a member of the Board of MIGHT Technology Nurturing (MTN) Sdn Bhd, UniMAP Holdings Sdn Bhd, NanoMalaysia Bhd and a member of the Consultative Panel on Creativity and Innovation of the Malaysian Productivity Corporation. He was a member of the Technical Committee to prepare and formulate the Malaysia Industrial Master Plan 3 (IMP3) and a Technical Advisor and Head of Study Team to the Government of Zambia for setting up of Industrial Park in Zambia. Earlier, he had served in various capacities in Kedah State Development Corporation and Darulaman Realty Sdn Bhd, the latter of which he was involved in the planning and development of the then new 1,200 acres Bandar Darulaman township in the 1986 1989. He has no family relationship with any other Directors and/or major shareholders of the Company.
Lee Kah Kheng Managing Director Malaysian, aged 48 Member of Remuneration Committee Mr. Lee is a promoter and substantial shareholder of ETICB, he was appointed to the Board of ETICB on 1 August 2005. He is also the Managing Director and a co-founder of ETI Tech (M) Sdn. Bhd. (ETI Tech). He graduated from Tunku Abdul Rahman College, Kuala Lumpur in 1988 with a professional accountancy qualification accredited by the Malaysian Institute of Certified Public Accountants (MICPA) and became a member of MICPA in 1993. He was attached to an accounting firm, Hanafiah, Raslan & Mohamad, from 1988 to 1992 as Senior Auditor before moving on to a multinational corporation, Northern Telecom Industry Sdn Bhd (whose principal activity is manufacturing and assembly of telecommunication products) in 1992 as a Cost Accountant. He left in 1994 to join a local corporation, Suiwah Corporation Bhd, which is currently listed on the Main Market of Bursa Securities and is principally involved in the retail industry, as its Group Financial Controller. He then left in 1997 to join Qdos Flexcircuits Sdn Bhd, a flexible PCB manufacturing company, as Executive Director. In 1999, he was promoted to become Group Executive Director of Qdos Holdings Sdn Bhd. In 2000, he left and became a consultant for several companies involved in ICT. He then set up ETI Tech in 2002 and was appointed its Managing Director in the same year. He is responsible for our Groups overall operations. Mr Lee does not have any family relationship with other directors of the Company. He is the spouse of Ms. Yeoh Li Hua, a substantial shareholder of ETICB.
Dato Dennis Chuah Executive/Business Development Director Malaysian, aged 39 Dato Dennis Chuah is a promoter and substantial shareholder of ETICB and was appointed to the Board of ETICB on 1 August 2005. He is also a co-founder of ETI Tech. He finished his secondary education at Methodist Boys School, Penang in 1990. He then joined Tako Astatic Technology Sdn Bhd in 1992 as a sales executive in charge of the sales of electrostatic discharge protective material for the semiconductor and electronics industries in Malaysia and Singapore. He left in 1996 to set up Zapstat Sdn Bhd, a manufacturer of electrostatic discharge packaging material, and was its Marketing Director until 2002. He helped to set up ETI Tech in 2002 and was appointed its Business Development Director in the same year. He is responsible for the overall business development and marketing functions of our Group. Dato Dennis Chuah does not have any family relationship with any director and/or major shareholder of ETICB.
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PROFILE OF DIRECTORS (contd)

Khor Yee Kwang Executive Director Malaysian, aged 53 Mr. Khor was appointed to the Board of ETICB on 1 November 2007. He graduated from Loughborough University, UK, in 1980 with a Bachelor of Science (Honours) in Metallurgy and a Bachelor of Science (Honours) in Management. In addition, he won the James France Prize for best overall academic results and became a postgraduate research student at Rolls Royce Plc, UK. In 1982, he joined Rolls Royce Plc as a researcher, developing military aircraft materials and Formula 1 racing car engine alloys. He then joined National Semiconductor (M) Sdn Bhd, whose principal activity was testing and development of semiconductors, as a Chief Engineer and was involved in setting up manufacturing systems for International Business Machines printer production. He was promoted to R&D Manager of Micro Machining in 1986, where he was involved in integrated circuit test equipment design and stayed with the company until 1989 after which he joined Sony Corporation, Japan (Sony), as Chief Engineer to pioneer the setting up of the Sony factory in Prai, Penang. From 1989 to 1999, he has held various job positions in Sony such as Auto Insertion Group Head, Assistant General Manager, Engineering Group Head, Photonics and Optics Group Head and SMI Development Group member. He left Sony in 1999 to join Flex Plus Pte Ltd in Singapore, a company involved in Flexible PCB (FPC), as its Research Chief in FPC technology. Between 1999 and 2002, he helped build Qdos Holdings Sdn Bhds FPC plant in Penang, assisted KKKea Holdings Pte Ltd, a Singapore firm to begin liquid crystal display (LCD) manufacturing and listing on the Stock Exchange of Singapore Dealing and Automated Quotation System (SESDAQ) and assisted BTE Sdn Bhd, a company based in Perak, to manufacture torque rod bush for Mercedes trucks. In 2002, he ventured into private research involving interconnection (circuitry) technology, energy and photonics. He was a consultant and Engineering Director for Flextronics Technology (Shah Alam) Sdn Bhd, a manufacturer and ODM company for mobile phone products which he was involved in the setting up of its handphone WCDMA (Wideband Code Division Multiple Access, a wireless technology of multiplexing, also called spread spectrum, in which analog signals are converted into digital form for transmission), CDMA2000 (a 3G transmission range Code Division Multiple Access (CDMA)), EDGE Enhanced (Data rates for Global System for Mobile communications (GSM) Evolution), 3G (third generation) Bluetooth industrialisation centre, electromagnetic interference (EMI) shield metallisation process, robotised paint coating process and super precision electrical injection moulding operation. He was also actively involved in the development of a small-sized thin film transistor (TFT) display manufacturing outfit. He joined ETI Tech as its Chief Technical Director and is responsible for the full R&D operations of our Group. He is a member of the National Committee for Environmental Standards, based in Universiti Putra Malaysia and had represented Malaysia in the fifth (5th) sub-committee of the Industrial Standards Organisation global technical group (ISO TC207 SC5) to develop the ISO 14040, 14041, 14042 and 14043 standards in Life Cycle Assessment. He was also involved in Green Partnership (Sony) and ROHS (a European environmental directive on the restriction of use of certain hazardous substances in electronic and electrical equipment) initiatives since year 2003. He has no family relationship with any other Directors and/or major shareholders of the Company.
Nordin Bin Mohamad Desa Independent Non-Executive Director Malaysian, aged 56 Chairman of the Audit Committee Member of Nomination Committee Member of Remuneration Committee En. Nordin was appointed to the Board of ETICB on 1 August 2005. He graduated from the University of Leeds, UK, in 1979 with a Bachelor of Science degree in Electrical and Electronic Engineering. He obtained a Master of Business Administration (MBA) degree from the University of Hull, UK in 1993. He started his career in 1979 in Jabatan Telekom Malaysia as an Assistant Controller of Telecoms where he was involved in the operations and maintenance of telecommunication switches, subscriber network, equipment and apparatus. He then left in 1985 to join Ericsson Telecommunications Sdn Bhd as a Technical Manager in charge of technical and customer service operations for Private Automatic Branch eXchange (PABX) and public subscriber equipment. In 1990, he joined Perkom Sdn Bhd as an Engineering Manager where he was responsible for technical, maintenance and sales support operations for data and computer network equipment for the banking, telecommunication and airline industries. Subsequently, in 1992, he joined the Malaysian Technology Development Corporation Sdn Bhd where he was involved in the promoting and developing technologybased industries, commercialisation of local R&D, technology acquisition and transfer, and venture capital funding. He held several senior managerial positions in the company and was its Senior General Manager when he resigned in 2001. En. Nordin does not have any family relationship with any director and/or major shareholder of ETICB.
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PROFILE OF DIRECTORS (contd)

Baqir Hussain Bin Hatim Ali Independent Non-Executive Director Malaysian, aged 49 Member of the Audit Committee Chairman of Nomination Committee Chairman of Remuneration Committee En. Baqir was appointed to the Board of ETICB on 1 August 2005. He is a member of the Malaysian Institute of Accountants , Malaysian Institute of Certified Public Accountants and Chartered Tax Institute of Malaysia. He is also an Approved Company Auditor and Licensed Tax Agent . En. Baqir graduated from Ungku Omar Polytechnic in 1986 with a Diploma in Accountancy and began his career in the same year with Hanafiah, Raslan & Mohamad / Arthur Andersen as an audit assistant. He obtained his qualification as a Chartered Accountant (CA) and Certified Public Accountant (CPA) while employed with the firm. He left the firm as a Senior Manager in the Assurance and Business Advisory Division in 2002 to venture into his own public practice. He has amassed more than 20 years of experience in the field of accountancy including external and internal auditing, mergers and acquisitions, receiverships and liquidations, initial public offerings and tax consultancy. He is currently the founder and managing partner of Baqir Hussain & Co, a firm of chartered accountants. En. Baqir also sits on the Board of Dufu Technology Corp. Berhad, a company listed on the Main Market of Bursa Securities, as an Independent Director. En. Baqir does not have any family relationship with any director and/or major shareholder of ETICB.
Lim Mei Theng Non-Independent Non-Executive Director Malaysian, aged 44 Ms. Lim was appointed to the Board of ETICB on 30 December 2011. Ms. Lim obtained a Bachelor Degree in Finance and Decision Sciences from University of Oregon USA in 1988. With the surge of internet and mobile marketing and recognizing the global importance of the new media, she went on to pursue a Master of Business Administration (MBA) in Multimedia Marketing from Multimedia University Malaysia in 2006. In addition, she is also a Certified Professional Trainer with skills and competencies in managing and delivering effective training programs. Ms. Lim began her career in 1989 in the service industry as a Casino Executive with Resorts World Berhad where she learned the ever important art of managing people in a diverse and high performance environment. She later moved on to Fast Moving Consumer Goods (FMCG) industry and has since acquired more than ten (10) years of experience in retail market expansion services which include market feasibility studies, market penetration, sales network, marketing, branding, merchandising, logistics, and distribution. During the period from 1995 to 2000, she held several positions in Diethelm (M) Sdn Bhd and was its Senior Department Manager when she resigned in 2000. Being accountable to profit and loss, she improved organizational productivity by developing and implementing strategies that foster operating synergies and was responsible in turning around a few of the companys key agencies during the Asian Financial Crisis in 1998. Subsequently, from 2001 onwards, Ms. Lim opted to share her acquired knowledge with Small and Medium Enterprises (SME) by joining Pacific Impact Industries Sdn Bhd and later Embun Elit Sdn Bhd. She successfully generated new revenue streams and reviewed marketing investment focus, resulting in desirable growth and business profitability. It was also during this period, she acquainted herself with the many technological advances in the market and recognizing the increasing importance of these new interactive media, she went on a quest for knowledge by enrolling herself in an MBA Program in Multimedia Marketing. She is presently the Regional Liaison person for Al Yousuf L.L.C, a multi-million Dirham conglomerate with diverse interest ranging from motor vehicles, boat manufacturing, auto rental, real estate development, home electrical appliances, computer operating systems, electronics, and taxi businesses. Ms. Lim does not have any family relationship with any director and/or major shareholder of ETICB. ADDITIONAL INFORMATION ON DIRECTORS Material contracts involving Directors There were no material contracts involving Directors during the financial year. Convictions for offences (within past 10 years, other than traffic offences) None of Directors have any convictions for offences other than traffic offences. Securities held in the Company The details are disclosed on page 60 of this Annual Report.
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CHAIRMANS STATEMENT
On behalf of the Board of Directors of ETI Tech Corporation Berhad (ETICB), I have the pleasure of presenting to you the Annual Report of the Group for the financial year ended 31 August 2011.
In the financial year 2011, we witnessed a few major events which will contribute positively to the growth of the Group. On September 2010, we were appointed by Jabatan Kerja Raya Malaysia (JKR) as its Project Partner on the pilot project for Genset Hybrid Systems, which used diesel genset as its power generation and ETI lithium based batteries as its energy storage. Subsequently in November 2010, this pilot project was implemented in a school located at a rural area of Kapit, Sarawak. This was a test case whereby using lithium polymer battery had better efficiency, reliability and cost advantage over the conventional lead acid based system. The objective of this project was to enable this school to be supplied with 24 hour electricity. We have received a report in March, 2011 prepared by Pasukan Projek JARIMAS comprising, among others, JKR and Universiti Malaysia Sarawak in relation to the Pilot Project implemented at the school (Sekolah Kebangsaan Lepong Gaat, Kapit, Sarawak) for the Genset Hybrid System completed during the financial year. In January 2011, we announced the updates of the Memorandum of Understanding (MoU) signed with Sirim Berhad to establish a partnership to develop the appropriate testing technology and safety approval standards for the medium to high power lithium based battery for various industry applications such as solar, electric vehicles and other applications in the domestic as well as international markets. In line with the said MoU, ETI Tech had collaborated with SIRIM in developing the undermentioned Solar Power Solution System as the Pilot Project for both parties:1) Solar Power Solution System (Model : SPSS2000PSW1) for Surau in Kg Gontoi, Kota Marudu, Sabah. 2) Solar Power Solution System (Model : SPSS2000PSW2) for Solar Generation Lab test at Bukit Jalil. 3) Solar Power Solution System (Model : SPSS2000PSW2) for Surau in Kg Kundang, Pahang. In 11 April 2011, we entered into an MoU with Universiti Malaysia Sarawak (UNIMAS) and Green Electric Sdn. Bhd. (GESB) to develop technical knowledge and technology transfer, expertise and research co-operation and also to promote mutual understanding for the joint development and promotion of GenSet Hybrid System to the Ministry of Education (MOE) for the rural schools in Sarawak.
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CHAIRMANS STATEMENT (contd)

In 25 April 2011, we were invited by Sabah Economic Development and Investment Authoritys (SEDIA) Investment Technical Committee to submit a detailed proposal on Green Power Solutions (the Proposal) for Agropolitan Projects in Sabah (the Projects). In line with the Proposal, we will collaborate with GESB, a home-grown system integrator, to provide Green Power Solutions for the Projects spearheaded by SEDIA, priority of which would be for the electrification of:i) ii) the housing of the residence working in the farm; and the rural schools built for the residence in the Projects area.
Subject to the project survey and technical assessment on the suitability of micro hydro system, ETI shall also provide green energy storage system for the Projects. Increasingly, we will focus on working in collaboration with system integrators to implement projects that utilise its green technology batteries. These include government projects, such as rural electrification programme for schools and housing via solar power system, and private sector companies that are keen to embrace green technology. With the increasing awareness of the advantages of lithium based battery applications over lead acid battery which is deemed to be not environment friendly, we foresee a potential increase in demand for our products which provide innovative energy storage solutions. FINANCIAL RESULTS For the financial year ended 31 August 2011, the Group has achieved revenue and profit before taxation of RM58 million and RM4 million respectively, which were mainly contributed from the sales of its existing own brand mobile charging products and customized design battery packs. The decrease in revenue and profit before taxation by RM16.03 million and RM5.81 million respectively compared to the preceding year were mainly contributed from the decrease in sales volume, depreciation of US Dollar against the Ringgit Malaysia as well as foreign exchange losses. RESEARCH & DEVELOPMENT In the financial year ended 2011, the Group continued to carry out its Research & Development (R&D) efforts and activities as planned and in line with the markets needs and technological advances. During the year, the Group had focused in R&D activities for the development of solar storage system to rural areas. We worked on those projects implemented outside the grid power transmission coverage, alternative power sources that are more efficient and eco-friendly that should be given higher priority to prevent permanent environmental damage to the rural areas which play an important role in the national food chain. In addition, the solutions have to blend well with the local environment with future development of the selected areas taken into consideration. Our various combinations of power generation and storage systems, all of which incorporate green components and/or core solutions designed to reduce carbon emissions by 68-74%, towards meeting our Prime Ministers pledge at the Copenhagen Climate Change Summit COP15 to reduce 40% of Malaysias carbon emissions by the year 2020 compared to 2005 figures. It is also intended to set a new benchmark for operating and cost efficiency where power supply via connection to the grid is not possible or unrealistic in the medium term. Our R&D will remain focus on green and renewable energy sector as it is becoming increasingly significant and important as countries and governments globally are concerned about depleting non-renewable energy sources and global warming as well as to seek to become less reliant on traditional energy sources such as fossil fuels. Battery, as an energy storage medium, is one of the main components of the green energy drive. We are hopeful of being able to secure meaningful contracts by introducing these energy storage solutions in the domestic and international markets. FUTURE PROSPECTS OF THE GROUP The financial turmoil surrounding the US and European economies continued to weigh down on Asia and the rest of the world during the financial year. However, going forward into 2012, measured recovery is expected and in view of this as well as the promising outlook of the green and renewable energy sector, the Group foresees an increase in the demand for its products and hence has continued to undertake more business negotiations, upgrade its engineering capabilities and technical know-how as well as provide more enhanced and value-added services and innovative solutions to its customers. We expect a strong growth in both revenue and profitability in the near future given the promising outlook of the green and renewable energy sector. Appreciation On behalf of the Board, I would like to express our sincere appreciation and gratitude to the management team and staff for their continuing efforts, dedication and contribution towards the success of the Group. I would like to take this opportunity to thank our valued customers, business associates, suppliers, bankers and regulatory authorities for their support. I would also like to thank our shareholders for their continuing support, trust and confidence towards the achievements of the Group thus far. Last but not least, I wish to thank my fellow Directors for their invaluable guidance, advice and support. DATO AHMAD SHUKRI BIN TAJUDDIN Chairman
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CORPORATE GOVERNANCE STATEMENT

The Board of Directors of ETICB (Board) is committed to comply with the Malaysian Code of Corporate Governance (the Code) and hence, ensuring high standards of corporate governance is in place and is practiced throughout the ETICB Group. ETICB has adopted all the best practices recommended by the Code except for the best practice relating to the appointment of a Senior Independent, non-Executive Director to whom shareholders may address their grievances and concerns. Presently, the Board is collectively responsible to address all grievances and concerns brought up by the shareholders but from time to time, the Board will review the need to implement the best practice. A. Board of Directors 1.1 Composition and balance of the Board The present Board is headed by the Chairman, and comprises: 3 Executive Directors 3 Independent Non-Executive Directors; and 1 Non- Independent Non-Executive Directors The composition of the Board reflects fairly the interest of all shareholders of ETICB and a strong independent element on the Board. The Board believes that its current size and composition is sufficient and effective in discharging the Boards responsibilities and in meeting ETICBs current requirements. There is a clear division of responsibilities between the Chairman and the Managing Director to ensure that there is a balance of power and authority. The Chairman is responsible for running the Board and ensuring that all Directors receive sufficient and reliable information on financial and non-financial matters to enable them to participate actively in Board decisions whilst the Managing Director take overall responsibilities over the operating units, organization effectiveness and implementation of the Boards policies and decisions. The Independent Directors make up at least 1/3 of the membership of the Board. 1.2 Board Meetings The Board governs the operations of the Group. The Board meets regularly, at least once every quarter and with additional meetings held as necessary to formulate and adopt strategic business plan for the Group, to evaluate the impact of risks affecting the operations of the Group and to formulate appropriate risk management systems. The attendance record for each Director at Directors meeting for the financial year ended 31 August 2011 (FY2011) is as follows: Director Dato Ahmad Shukri Bin Tajuddin Lee Kah Kheng Dato Dennis Chuah Khor Yee Kwang Nordin Bin Mohamad Desa Baqir Hussain Bin Hatim Ali Iqbal Yousuf Habib Al Yousuf (Resigned w.e.f. 27 December 2011) Lim Mei Theng (Appointed w.e.f. 30 December 2011) 1.3 Supply of Information Meeting agenda and relevant board meeting documents are circulated to the Directors in advance of each meeting to ensure that board meetings are conducted effectively. Any additional information requested by the Directors will be provided in a timely manner. The proceedings of all board meetings are duly compiled in minutes. The minutes are kept at the registered office of ETICB. All Directors have access to the services and advice of the Company Secretary. The Company Secretary advises the Board on their statutory obligations as well as obligations arising from the Bursa Malaysia Securities Berhad Main Market Listing Requirements (Main LR) and other regulatory requirements. In furtherance of their duties, the Directors, collectively and individually, have access to information within the Company. This includes direct access to the senior management. No. of meetings held 5 5 5 5 5 5 5 No. of meetings attended 5 4 4 4 5 5 3 -
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CORPORATE GOVERNANCE STATEMENT (contd)

A. Board of Directors (contd) 1.4 Access to Information and Advice The Board of Directors is supplied with financial and operational information, both in qualitative and quantitative forms to assist the Board members to discharge their responsibilities. Where a potential conflict of interest may arise, the Director concerned will be required to declare his interest and abstain from decision making/voting. All Directors will have full access to the information and are entitled to obtain full disclosure by the management and advice or services from the Company Secretary or independent professional on matters that will be put forward to the Board for decision to ensure that they are being discussed and examined in an impartial manner that takes into account the long term interests of shareholders, employees, suppliers, customers and other public in which the group conduct its business. 1.5 Re-election of the Directors In accordance with the Companys Articles of Association, one-third or nearest to one-third (1/3) of the Board is subject to retirement by rotation at each Annual General Meeting provided always that all Directors including the Managing Director shall retire from office at least once in every three (3) years. The Directors to retire at the Annual General Meeting are Directors who have been longest in office since their appointment or re-election. A retiring Director is eligible for re-election. The election of each Director is voted on separate resolution. Any person appointed by the Board either to fill a casual vacancy or as an addition to the existing Directors, shall hold office only until the next Annual General Meeting and shall then be eligible for re-election. The profile of all Directors including their personal profile, meeting attendance and their shareholdings in ETICB has been furnished in this Annual Report. 1.6 Directors Training All Directors have attended the Mandatory Accreditation Programme (MAP) save for Ms Lim Mei Theng who was appointed on 30 December 2011. The Board of Directors will assume the onus of determining or overseeing the training needs for Directors. In this respect, the Directors are encouraged to attend various external professional programmes deemed necessary in order to keep abreast with the latest developments in the market place, advances in corporate governance and to further enhance their skill and knowledge to enable them to discharge their duties as Directors in an effective manner. Save for the undermentioned directors who have attended the training as follows, the other Directors have not attended any training during the FY 2011 due to their respective tight schedule and travel commitments:Director Baqir Hussain Bin Hatim Ali Date 22 September 2010 14 & 15 October 2010 2 November 2010 14 April 2011 13 May 2011 19 May 2011 2. Board Committees The Board, in discharging its fiduciary duties, is assisted by the following Board Committees which have been set up for specific functions. The terms of reference for each committee have been approved by the Board and comply with best practices recommended by the Code: Audit Committee Executive Committee Remuneration Committee Nomination Committee All the Board Committees are assisted by the Company Secretary. Description Workshop on Essential Tax Planning for Companies in 2010 UHY Learning Series # 2 Highlights of the 2010 New FRSs, Revised FRSs and IC Interpretations Seminar Percukaian Kebangsaan 2010 Workshop On Recent Tax Cases in 2010/2011 Workshop On New Public Rulings 2011 Tax Update Workshop
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2. Board Committees (contd) 2.1 Audit Committee The terms of reference and the function of the Audit Committee are discussed on Pages 14 to 16 of this Annual Report. 2.2 Executive Committee The Executive Committee (Exco) comprises the Executive Directors as follows: Chairman : Lee Kah Kheng Members : Dato Dennis Chuah The Exco has been formed to assist the Managing Director to manage ETICB Groups day-to-day operations. Its main function is to formulate operations plans and oversee the execution of these plans. The Exco meets regularly to discuss operational issues. 2.3 Remuneration Committee The Remuneration Committee (RC) currently comprises the following: Chairman : Baqir Hussain Bin Hatim Ali (Independent Non-Executive Director) Members : Nordin Bin Mohamad Desa (Independent Non-Executive Director) Lee Kah Kheng (Executive Director) Majority of the RC are Independent Non-Executive Directors. The RC is responsible for recommending to the Board about the remuneration policy and the establishment of a formal and transparent methodology in determining the remuneration of, Executive Directors, Non-Executive Directors and Senior Management and to review changes to the policy and methodology as necessary. The RC also reviews the existing level of remuneration of Executive Directors and to recommend their remuneration to the Board based on the performance of the Company and on their individual performances, to ensure their remuneration level commensurate with the scope of their responsibilities. The policy practiced on Directors remuneration by the RC is to provide the remuneration packages necessary to attract, retain and motivate Directors of the quality required to manage the business of the Group and to align the interest of the Directors with those of the shareholders. Details of Directors remunerations for FY2011 are as follows: Category Executive Directors Non-Executives Directors Total Fee (RM) 36,000 102,000* 138,000 Salaries (RM) 708,000 708,000 Allowances (RM) 19,000* 19,000 EPF & SOCSO (RM) 86,820 86,820 Total (RM) 830,820 121,000* 951,820
The number of Directors for each band of total remuneration received is as follows: Band Below RM50,000 RM200,001-RM250,000 RM300,001-RM350,000 Executive Directors 2 1 Non-Executive Directors 5* -
* Included directors fees and allowances for a director who resigned during the financial year. 2.4 Nomination Committee The Nomination Committee (NC) currently comprises the following: Chairman : Baqir Hussain Bin Hatim Ali (Independent Non-Executive Director) Member : Nordin Bin Mohamad Desa (Independent Non-Executive Director) Dato Ahmad Shukri Bin Tajuddin (Independent Non-Executive Director) The NC consists exclusively of Independent Non-Executive Directors.
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2. Board Committees (contd) 2.4 Nomination Committee (contd) The NC is empowered by the Board with the terms of reference to review the structure, size and composition of the Board and make recommendations to the Board with regard to any adjustments that are deemed necessary. The NC also recommends to the Board, the minimum requirements for the Board, ie. required mix of skills, experience, qualification and other core competencies required of a Director including the Managing Director. In addition, the NC also reviews the adequacy of committee structures of the Board Committees, assess and recommend to the Board the terms of reference of the Board Committees. The Board, through the NC, appraises the composition of the Board. The NC believes that the current composition brings the required mix of skills and core competencies for the Board to discharge its duties effectively. New appointees will be considered and evaluated by the NC. The NC will then recommend the candidates to be approved and appointed by the Board. The Company Secretary will ensure that all appointments are properly made, and that legal and regulatory obligations are observed. B. Accountability and Audit Audit Committee The composition, terms of reference, attendance of meetings by individual members and the function of the Audit Committee are discussed in Pages 14 to 16 of this Annual Report. 1.1 Financial Reporting In presenting the Annual Report and quarterly announcement of interim financial results to the shareholders, the Board aims to provide and present a balanced and understandable assessment of the Groups financial performance and prospects. The Board is assisted by the Audit Committee to oversee the Groups financial reporting processes and the quality of its financial reporting. 1.2 Internal Control The Board is fully aware of its responsibility to safeguard and enhance the value of shareholders in ETICB. In this respect, the Company has engaged an independent firm of professionals to conduct internal audits. The functions of internal auditors are to ensure that adequate system of internal controls exist to assist the management to address operational, regulatory and financial risks. Information pertaining to the Companys internal controls is shown in the Statement on Internal Controls set out on page 17 of this Annual Report. 1.3 Relationship with the Auditors The Board maintains a good professional relationship with the external auditors. Non-Executive members of the Audit Committee intend to meet with the external auditors at least twice a year to discuss the conduct and concerns arising from their audit. C. Relationship with Shareholders and Investors The Board of ETICB recognizes the value of good investor relation and the importance of disseminating information in a fair and equitable manner. As such, participation of shareholders and investors, both individual and institutional, at general meetings is encouraged. The Board welcomes requests for briefings from the press and investment analysts. The annual report, together with notice of annual general meeting, is sent to shareholders at least 21 days before the date of each annual general meeting. In line with the recommendation of the Main LR and the Code, material information is disseminated to shareholders and investors on a timely basis. This information can be viewed at the Companys website (www.etitech.com.my) and includes: 1. Quarterly announcements 2. Annual reports 3. Circular to shareholders 4. Other important announcements This statement was made in accordance with a resolution of the Board dated January 13, 2012.
14
AUDIT COMMITTEE REPORT

COMPOSITION Chairman En. Nordin Bin Mohamad Desa Independent Non-Executive Director Member En. Baqir Hussain Bin Hatim Ali Independent Non-Executive Director Dato Ahmad Shukri Bin Tajuddin Independent Non-Executive Director TERMS OF REFERENCE The Committee is governed by the following terms of reference:1. Objective The principal activities of the Audit Committee is to assist the Board of Directors in discharging its statutory duties and responsibilities relating to accounting and reporting practices of the Group. In addition, the committee shall: 2. Evaluate the quality of the audit conducted by the internal and external auditors; Provide assurance that the financial information presented by management is relevant, reliable and timely; Oversee compliance with laws and regulations and observance of a proper code of conduct; and Determine the adequacy of the Groups control environment.
Membership The Committee shall be appointed by the Board from amongst its members and shall consist of not less than three members exclusively NonExecutive Directors of whom a majority shall be Independent Directors. The members of the Committee shall elect a Chairman from among their number who is Independent Director. No Chief Executive Officer and Alternate Director shall be appointed as a member of the Committee. If the number of members is reduced below three, due to whatsoever reasons, the Board shall within three months of that event, appoint such number of new members as may be required to make up the minimum number of three members.
3.
Meetings Meetings shall be at least four times a year. A quorum of two independent members shall constitute a valid meeting. The Internal Auditor or professional firm engaged to provide such services and senior management members shall be invited to attend meetings, as the Committee deems necessary. The external auditors or any member of the Committee may request a meeting as and when they deem necessary. A meeting with external auditors shall be held at least twice a year without the presence of executive Board members. The Company Secretary shall be the Secretary to the Committee.
4.
Authority The Committee is authorized by the Board to investigate any activity within its terms of reference and shall have the resources required to perform its duties. The Committee has full and unrestricted access to all information and documents relevant to its activities as well as to the internal and external auditors and employees of the Group. The Committee is authorized by the Board to obtain external legal, independent or other professional advice and be able to convene meetings with external parties whenever deemed necessary. It shall also have the power to establish Sub-Audit Committee(s) to carry out certain investigation on behalf of the Committee in such manner, as the Committee shall deemed fit and necessary.
15
AUDIT COMMITTEE REPORT (contd)

5. Duties and Responsibilities The duties and responsibilities of the Committee shall be: 6. to review with the external auditors the audit plan following from structured risk assessment process, their evaluation of the internal controls and their audit reports and to consider adequacy of Managements actions taken on external audit reports. to discuss with the external auditors before the audit commences, the nature and scope of the audit. to review the assistance given by the employees of the Company to the external auditors. to review the external auditors management letter and managements response. to nominate a person or persons as the external auditors of the Company, the fees thereof, assess reappointment of existing external auditors and consider resignation of external auditors. to review the internal programme and results of the internal audit process and where necessary ensure that appropriate action is taken on the recommendations of the internal audit function (if any). to review the adequacy of the scope, functions and resources of the internal audit functions (if any). to review any related party transactions and conflict of interest situation that may arise within the Company or Group and to monitor any inter-company transaction or any transaction between the Company and any related parties outside the Group. to review the quarterly and year-end financial statements of the Company and the Group and thereafter submit them to the Board. to review and evaluate the adequacy and effectiveness of the Groups accounting policies, procedures and internal controls. to perform such other duties if any as may be agreed to by the Committee and the Board.
Reporting The Committee is authorized to regulate its own procedure and in particular the calling of meetings, the notice to be given of such meetings, the voting and proceeding thereat, the keeping of minutes and the custody, production and inspection of such meetings. The Minutes of the meetings shall be concluded by the Secretary of the Committee to the Committee members and all the other Board members.
7.
Attendance at Meetings The information on the attendance of each member at the Committee meeting held during the financial year ended 31 August 2011 [FY 2011] is as follows:Member En. Nordin Bin Mohamad Desa En. Baqir Hussain Bin Hatim Ali Dato Ahmad Shukri Bin Tajuddin (Appointed w.e.f. 27 October 2010) No. of Meeting Held 5 5 4 Attendance 5 5 4
8.
Activities of the Audit Committee The activities were carried out by the Committee during the FY 2011 in the discharge of its duties and responsibilities are as follows: Reviewed the draft quarterly results of the Group and the recommendation of the same to the Board for approval. Reviewed the compliance on the Bursa Malaysia Securities Berhad Main Market Listing Requirements (Main LR), Malaysian Code on Corporate Governance and other statutory requirements. Discussed with the external auditors before the audit commences, the nature and scope of the audit. Reviewed the external auditors management letter and management's response. Reviewed any related party transactions and conflict of interest situation that may arise within the Company or Group and to monitor any inter-company transaction or any transaction between the Company and any related parties outside the Group. Reviewed the quarterly and year-end financial statements of the Company and the Group and thereafter submit them to the Board.
16
AUDIT COMMITTEE REPORT (contd)

9. Internal Audit Function The Board has engaged an external professional firm to carry out the internal audit function of the Group. The Internal Auditors report directly to the Committee. The primary roles of the Internal Auditors are to assist the Committee on an ongoing basis to : review the risk management framework; evaluate the state of compliance with the Main LR, Malaysian Code on Corporate Governance and other statutory requirements; provide independent, systematic and objective evaluation on the state of internal control within the Group; review recurrent related party transaction; perform such other functions as requested by the Committee.
The internal auditors have assisted the Audit Committee to: conduct the internal audit for FY 2011 review the state of corporate governance of the Group review and document the risk management framework of the Group review the state of internal control of various operating cycles within the Group
Information pertaining to the Companys internal controls is shown in the Statement on Internal Controls set out on page 17 of this Annual Report. This statement was made in accordance with a resolution of the Board dated January 13, 2012.
17
STATEMENT ON INTERNAL CONTROL

Introduction This Statement on Internal Control has been prepared in accordance with the Statement on Internal Control Guidance for Directors of Public Listed Companies. Board Responsibilities The Board recognises the importance of maintaining a sound system of internal control over financial reporting, compliance with laws and regulations and the Groups operations as well as having effective risk management practices within the Group. The Board affirms its overall responsibility and reviews the adequacy and integrity of the system of internal control to safeguard shareholders investment and the Groups assets. However, due to the inherent limitations of any system of internal control, this system is designed to manage, rather than eliminate the risk of failure to achieve the Groups objectives. Accordingly, the system can only provide reasonable but not absolute assurance against material misstatement or loss. Risk Management The Board recognizes its responsibilities with regard to identifying and managing principal risks. The Group has a formalized risk management framework in which the existence of significant risks of the Group have been identified and quantified. The corresponding controls to manage the risks have also been documented. The framework also sets out the management action plan to improve on the system of controls in order to manage the risks more effectively. The risk profile of the Group has been compiled to help the Board and management to prioritize their focus on areas of high risks. The senior management is responsible for identifying, managing and reporting on significant risks on an ongoing basis. Significant risk matters are brought to the attention of the Executive Directors, and if necessary, are also discussed at Board meetings. Internal Audit The Board acknowledges the importance of the internal audit function and has outsourced the internal audit function to an independent firm of professionals to provide much of the assurance it requires on the effectiveness as well as the adequacy and integrity of the Groups systems of internal control. The costs incurred for the internal audit function for FY2011 was RM7,700. The internal audit function has adopted a risk-based approach in its audit work. The audit focused on areas with high risk, which were identified in the risk management framework, to ensure that the controls were functioning and where necessary, action plans were developed to improve on controls to manage significant risks. The internal audit function has presented its internal audit reports to the Audit Committee during the Audit Committee meetings. The internal audit function will continuously monitor the status of implementation of recommended action plans by the management and report on their progress in future Audit Committee meetings. Internal Control Apart from the risk management framework and internal audit function, the Group has put in place the following key elements of internal control: An organization structure with clearly defined lines of responsibility, authority and accountability; Regular Board and management meetings are held where information is provided to the Board and management covering financial performances and operations; Regular training and development programs are being attended by employees with the objective of enhancing their knowledge and competency; and Management accounts and reports are prepared monthly for monitoring of operating results.
The internal control system will continue to be reviewed, added on or updated in line with changes in the operating environment. Conclusion The Board is of the view that there were no significant weaknesses in the systems of internal control of the Group that had a material impact on the operations of the Group for FY2011. The Board remains committed to a sound system of internal controls and to progressively enhance the system to support the Groups operations. This statement was made in accordance with a resolution of the Board dated January 13, 2012.
18
DISCLOSURE REQUIREMENTS
Pursuant To The BURSA SECURITIES MAIN MARKET Listing Requirements Utilization of Proceeds During the financial year, there were no proceeds raised by the Company from any corporate proposals. Share Buybacks During the financial year, there was no share buyback by the Company. Employee Share Scheme There was no Employee Share Scheme implemented by the Company during the financial year. Options, Warrants or Convertible Securities No options, warrants or convertibles securities were issued by the Company during the financial year. American Depository Receipt (ADR) or Global Depository Receipt (GDR) Programme During the financial year, the Company did not sponsor any such programme. Imposition of Sanctions and/or Penalties There were no material sanction and/or penalties imposed on the Company and its subsidiary companies, Directors or management by the regulatory bodies. Non-Audit Fees The amount of non-audit fees incurred for services rendered to the Company and its subsidiary companies for the financial year by the Companys Auditors, or a firm or company affiliated to the Auditors firm is RM8,471.60. Profit Forecast and Unaudited Results Deviation There was no profit forecast issued by the Group during the financial year. The audited consolidated results during the financial year of the Group did not deviate by more than 10% of the unaudited consolidated results of the Group as announced via the BURSALINK on www.bursamalaysia.com on 28 October 2011. Profit Guarantee There was no profit guarantee issued by the Group during the financial year. Revaluation Policy The policy on revaluation of properties is as disclosed in the financial statements. Material Contract There were no material contracts entered into by the Company and its subsidiaries involving Directors and substantial shareholders interests either still subsisting as at 31 August 2011 or entered into since the end of the previous financial year. Corporate Social Responsibility (CSR) Statement The Group is driven by the belief that in pursuit of any business objective, we need to strike a balance between profitability and contributions to the social and environmental responsibilities. With such belief, the Group is committed and uses its best endeavour, on ongoing basis, to integrate CSR practices into its day-to-day business operations i.e. constantly reviewing the staff benefits to enhance the quality of life of its employees and adopting eco-friendly practices such as minimizing the use of hazardous compound in its manufacturing process to protect the environment. Recurrent Related Party Transactions of a Revenue or Trading Nature The details of Recurrent Related Party Transactions concluded and their actual amount entered into during the financial year ended 31 August 2011 are as below:Cumulative amount transacted as at 31.08.2011 (RM) 5,903.20
No. 1.
Related Parties ETI Tech AYD (Principal) (Distributor)
Nature of Transactions Sale of Nano Mobile Charger, Energy Rider, Green GenSet, Green Golf Cart battery pack by ETMSB to AYD whom as a Distributor for ETMSB within United Arab Emirates, Middle East and Africa Supply of battery pack to AYD
Interested Related Party Al Yousuf L.L.C (Al Yousuf), a major shareholder of ETICB is also the holding company of AYD Iqbal Yousuf Habib Al Yousuf^ is a major shareholder of ETICB and Al Yousuf. Al Yousuf L.L.C (Al Yousuf), a major shareholder of ETICB is also the holding company of AYD Iqbal Yousuf Habib Al Yousuf^ is a major shareholder of ETICB and Al Yousuf.
2.
AYD
ETI Tech
3.
Eclimo
ETI Tech
Supply of battery pack to Eclimo
Dato Dennis Chuah, a Director and major shareholder of ETICB is also a major shareholder of Eclimo. Dato Dennis Chuah is also a common Director of Eclimo and ETI Tech.
411,444.47
Mr. Iqbal Yousuf Habib Al Yousuf is a former Director of ETICB, resigned w.e.f. 27 December 2011.
ETI Tech - ETI Tech (M) Sdn. Bhd. AYD Al Yousuf Digitals LLC Eclimo Eclimo Sdn. Bhd.
19
STATEMENT OF DIRECTORS RESPONSIBILITIES

The Directors are required to prepare audited financial statements that give a true and fair view of the state of affairs, including the cash flow and results, of the Group and the Company as at the end of each financial year. In preparing these financial statements, the Directors have considered the following: that the Group and the Company have used appropriate accounting policies, and are consistently applied; that reasonable and prudent judgements and estimates were made; that the approved accounting standards in Malaysia have been applied; and that the preparation of the financial statements on a going concern basis.
The Directors are responsible for ensuring that the Company maintains proper accounting records which disclose with reasonable accuracy the financial position of the Group and the Company, and which enable them to ensure that the financial statements comply with the Companies Act, 1965. The Directors have general responsibility for taking such steps that are reasonably available to them to safeguard the assets of the Group and the Company, and to prevent and detect fraud and other irregularities.
FINANCIAL STATEMENTS
21 - 23 24 24 25 26 27 28 29 30 - 57 DIRECTORS REPORT STATEMENT BY DIRECTORS STATUTORY DECLARATION INDEPENDENT AUDITORS REPORT TO THE MEMBERS STATEMENTS OF FINANCIAL POSITION STATEMENTS OF COMPREHENSIVE INCOME STATEMENTS OF CHANGES IN EQUITY STATEMENTS OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS
21
DIRECTORS REPORT
The Directors hereby present their report together with the audited financial statements of the Group and of the Company for the financial year ended 31 August 2011. Principal Activities The principal activity of the Company is that of investment holding. The principal activities of the subsidiary companies are disclosed in Note 4 to the financial statements. There have been no significant changes in the nature of these activities during the financial year. Financial Results Group RM Profit/(Loss) before taxation Taxation Net profit/(loss) for the financial year Attributable to: Equity holders of the parent 4,049,281 (304,000) 3,745,281 3,745,281 Company RM (323,094) (323,094)
In the opinion of the Directors, the results of the operations of the Group and of the Company for the financial year have not been substantially affected by any item, transaction or event of a material and unusual nature. There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely to affect substantially the results of their operations of the Group and of the Company for the current financial year. Dividend No dividend has been paid or declared by the Company since the end of the previous financial year. The Board of Directors does not recommend any dividend in respect of the financial year under review. Reserves and Provisions There were no material transfers to or from reserves or provisions during the financial year under review other than those disclosed in the financial statements. Issue of Shares and Debentures There were no issues of shares or debentures during the financial year under review. Options Granted Over Unissued Shares No options were granted to any person to take up unissued shares of the Company during the financial year under review. Directors The Directors who served since the date of the last report are as follows: Lee Kah Kheng Dato Dennis Chuah Nordin Bin Mohamad Desa Baqir Hussain Bin Hatim Ali Khor Yee Kwang Iqbal Yousuf Habib Al Yousuf Dato Ahmad Shukri Bin Tajuddin
22
DIRECTORS REPORT (contd)

Directors Interests Details of holdings in the share capital of the Company or its related corporations by the Directors in office at the end of the financial year, according to the register required to be kept under Section 134 of the Companies Act, 1965, were as follows: No. of ordinary shares of RM0.10 each At 1.9.2010 Direct interest: Lee Kah Kheng Dato Dennis Chuah Khor Yee Kwang Dato Ahmad Shukri Bin Tajuddin Indirect interest: Lee Kah Kheng (1) Iqbal Yousuf Habib Al Yousof (2) Note: 1 2 Deemed interests pursuant to Section 134(12)(c) of the Companies Act, 1965 in compliance with the Companies (Amendment) Act, 2007 by virtue of his spouse direct interests in the Company. Deemed interests pursuant to Section 6A of the Companies Act, 1965 by virtue of his direct interests in Al-Yousuf L.L.C. 97,441,822 101,399,822 36,072 300,000 3,936,270 102,115,800 Acquired 267,400 4,837,400 Disposed (40,720,600) (29,918,800) At 31.8.2011 56,988,622 76,318,422 36,072 300,000 3,936,270 102,115,800
By virtue of their interests in the shares of the Company, Lee Kah Kheng and Dato Dennis Chuah are also deemed to have interests in the shares of all the subsidiary companies to the extent the Company has an interest. None of the other Directors holding office at the end of the financial year had any interest in the ordinary shares and options of the Company or its related corporations during the financial year under review. Directors Benefits Since the end of the previous financial year, no Director of the Company has received or become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors as 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 or its subsidiary companies a party to any arrangement the object of which is 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. Other Statutory Information (a) 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: (i) to ascertain that action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for doubtful debts; and (ii) to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected so to realise. (b) At the date of this report, the Directors are not aware of any circumstances which would render: (i) the amount written off for bad debts or the allowance for doubtful debts in the financial statements of the Group and of the Company inadequate to any substantial extent; (ii) the values attributed to the current assets in the financial statements of the Group and of the Company misleading; (iii) any amount stated in the financial statements of the Group and of the Company misleading; and (iv) adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.
23
DIRECTORS REPORT (contd)

Other Statutory Information (contd) (c) No contingent or other liabilities of the Group and of the Company have become enforceable, or are likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may affect the ability of the Company or its subsidiary companies to meet their obligations as and when they fall due. (d) At the date of this report, there does not exist: (i) any charge on the assets of the Company and its subsidiary companies which has arisen since the end of the financial year which secures the liabilities of any other person; and (ii) any contingent liability in respect of the Company and its subsidiary companies which has arisen since the end of the financial year.
Significant Events The significant events are disclosed in Note 29 to the financial statements. Auditors The auditors, UHY, have expressed their willingness to accept re-appointment. Signed in accordance with a resolution of the Directors.
LEE KAH KHENG
DATO DENNIS CHUAH
KUALA LUMPUR 21 DEC 2011
24
STATEMENT BY DIRECTORS
Pursuant to Section 169(15) of the Companies Act, 1965 We, LEE KAH KHENG and DATO DENNIS CHUAH, being two of the Directors of ETI TECH CORPORATION BERHAD, do hereby state that, in the opinion of the Directors, the financial statements set out on pages 26 to 57 are drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as of 31 August 2011 and of their financial performance and cash flows for the financial year then ended. The supplementary information set out in Note 13 to the financial statements have been compiled in accordance with 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 and the directive of Bursa Malaysia Securities Berhad. Signed in accordance with a resolution of the Directors.
LEE KAH KHENG KUALA LUMPUR 21 DEC 2011
DATO DENNIS CHUAH
STATUTORY DECLARATION
Pursuant to Section 169(16) of the Companies Act, 1965 I, LEE KAH KHENG, being the Director primarily responsible for the financial management of ETI TECH CORPORATION BERHAD, do solemnly and sincerely declare that the financial statements set out on pages 26 to 57 are to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960. Subscribed and solemnly declared by the abovenamed LEE KAH KHENG at KUALA LUMPUR in the FEDERAL TERRITORY on this 21 DEC 2011 ) ) ) ) )
LEE KAH KHENG
Before me Arshad Abdullah COMMISSIONER FOR OATHS 21 DEC 2011
25
INDEPENDENT AUDITORS REPORT

Report on the Financial Statements
TO THE MEMBERS OF ETI TECH CORPORATION BERHAD (Company No.: 667845-M) (Incorporated in Malaysia)
We have audited the financial statements of ETI Tech Corporation Berhad., which comprise the statements of financial position as at 31 August 2011 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 26 to 57. The financial statements of the Group and of the Company as at 31 August 2010 were audited by another auditors whose reports dated 23 December 2010, expressed an unqualified opinion on the financial statements. Directors Responsibility for the Financial Statements The Directors of the Company are responsible for the preparation of financial statements that give a true and fair view in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia, and for such internal control 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 control relevant to the entitys preparation of 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 entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as of 31 August 2011 and of their financial performance and cash flows for the financial year then ended. Report on Other Legal and Regulatory Requirements In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the followings: (a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiary companies of which we have acted as auditors have been properly kept in accordance with the provisions of the Act. (b) We are satisfied that the accounts of the subsidiary companies that have been consolidated with the Companys financial statements are in form and content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received satisfactory information and explanations required by us for those purposes. (c) Our audit reports on the accounts of the subsidiary companies did not contain any qualification or any adverse comment made under Section 174(3) of the Act. Other Reporting Responsibilities The supplementary information set out in Note 13 is solely disclosed to meet the requirement of Bursa Malaysia Securities Berhad. The Directors are responsible for the preparation of the supplementary information in accordance with 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 Malaysia 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 content of this report. UHY Firm Number: AF 1411 Chartered Accountants KUALA LUMPUR 21 DEC 2011 TEE GUAN PIAN Approved Number: 1886/05/12 (J/PH) Chartered Accountant
26
STATEMENTS OF FINANCIAL POSITION

AS AT 31 AUGUST 2011 Group Note Non-Current Assets Property, plant and equipment Investment in subsidiary companies Development expenditure Current Assets Inventories Trade receivables Other receivables Amount owing by subsidiary companies Fixed deposit with a licensed bank Cash and bank balances Total Assets Equity Share capital Retained profits/(Accumulated losses) Total Equity Non-Current Liabilities Hire purchase payables Bank borrowings Deferred tax liabilities Current Liabilities Trade payables Other payables Hire purchase payables Bank borrowings Total Liabilities Total Equity and Liabilities 17 18 14 15 1,729,204 1,266,879 612,868 17,875,341 21,484,292 28,192,944 132,619,619 2,722,856 1,742,340 8,719,809 13,185,005 16,881,331 117,562,725 78,938 78,938 78,938 67,473,418 79,938 79,938 79,938 67,797,512 12 13 68,077,200 36,349,475 104,426,675 2,909,815 3,010,837 788,000 6,708,652 68,077,200 32,604,194 100,681,394 3,212,326 484,000 3,696,326 68,077,200 (682,720) 67,394,480 68,077,200 (359,626) 67,717,574 6 7 8 9 10 11 3 4 5 16,119,437 32,647,469 48,766,906 38,847,782 31,179,991 6,004,029 852,281 6,968,630 83,852,713 132,619,619 14,072,266 30,115,543 44,187,809 10,266,294 46,008,850 9,801,715 823,462 6,474,595 73,374,916 117,562,725 9,168,998 9,168,998 58,304,420 58,304,420 67,473,418 9,168,998 9,168,998 58,628,514 58,628,514 67,797,512 2011 RM 2010 RM 2011 RM Company 2010 RM
14 15 16
The accompanying notes form an integral part of the financial statements.
27
STATEMENTS OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 Group Note Revenue Cost of sales Gross profit Other operating income Administration expenses Selling and distribution expenses Finance costs Profit/(Loss) before taxation Taxation Net profit/(loss) for the financial year, representing total comprehensive income for the financial year Net profit for the financial year attributable to: Equity holders of the parent Earnings per share (sen) - Basic 23 20 21 22 19 2011 RM 57,994,583 (48,745,579) 9,249,004 479,882 (3,939,673) (562,330) (1,177,602) 4,049,281 (304,000) 2010 RM 74,025,916 (56,220,560) 17,805,356 607,710 (7,393,500) (570,132) (589,576) 9,859,858 (207,000) 2011 RM (323,094) (323,094) Company 2010 RM (841,912) (841,912) -
3,745,281
9,652,858
(323,094)
(841,912)
3,745,281 0.55
9,652,858 1.42
28
STATEMENTS OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 Share capital RM 22,692,400 45,384,800 Retained profits/ (Accumulated losses) RM 68,336,136 (45,384,800) Total equity RM 91,028,536 -
Group At 1 September 2009 Bonus issue Net profit for the financial year, representing total comprehensive income for the financial year At 31 August 2010 At 1 September 2010 Net profit for the financial year, representing total comprehensive income for the financial year At 31 August 2011 Company At 1 September 2009 Bonus issue Net loss for the financial year, representing total comprehensive income for the financial year At 31 August 2010 At 1 September 2010 Net loss for the financial year, representing total comprehensive income for the financial year At 31 August 2011
68,077,200 68,077,200
9,652,858 32,604,194 32,604,194
9,652,858 100,681,394 100,681,394
68,077,200
3,745,281 36,349,475
3,745,281 104,426,675
22,692,400 45,384,800
45,867,086 (45,384,800)
68,559,486 -
68,077,200 68,077,200
(841,912) (359,626) (359,626)
(841,912) 67,717,574 67,717,574
68,077,200
(323,094) (682,720)
(323,094) 67,394,480
29
STATEMENTS OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011 Group Note Cash Flows From Operating Activities Profit/(Loss) before taxation Adjustment for: Amortisation of development expenditure Depreciation of property, plant and equipment Impairment on trade receivables Reversal of impairment on trade receivables Interest expense Interest income Property, plant and equipment written off Unrealised loss on foreign exchange Gain on disposal of property, plant and equipment Operating profit/(loss) before working capital changes Decrease/(Increase) in working capital Inventories Trade receivables Other receivables Trade payables Other payables Amount owing by/to subsidiary companies Cash (used in)/generated from operations Interest received Interest paid Net cash (used in)/generated from operating activities Cash Flows From Investing Activities Purchase of property, plant and equipment Movement of development expenditure Proceeds from disposal of property, plant and equipment Net cash used in investing activities Cash Flows From Financing Activities Repayment of term loans Increased in banker acceptances and trust receipts Repayment of hire purchase payables Increase in fixed deposit pledged to a licensed bank Net cash from financing activities Net increase/(decrease) in cash and cash equivalents Effect of exchange rate changes Cash and cash equivalents at beginning of the financial year Cash and cash equivalents at end of the financial year Cash and cash equivalents at end of financial year comprises: Cash and bank balances Fixed deposit with a licensed bank Bank overdraft Less: Fixed deposit pledged to a licensed bank 3(d) 2011 RM 4,049,281 403,472 2,874,012 (2,757) 1,177,602 (28,820) 909,834 9,382,624 (28,581,488) 13,855,593 3,797,686 (927,463) (475,461) (12,331,133) (2,948,509) 28,820 (1,177,602) (1,148,782) (4,097,291) (3,114,233) (2,609,780) 1,486,408 (4,237,605) (196,742) 9,052,600 (96,293) (28,819) 8,730,746 395,850 6,002,227 6,398,077 2010 RM 9,859,858 463,934 2,580,072 719,303 (451,642) 589,576 (20,673) 7,208 482,445 (77,000) 14,153,081 (2,813,963) (8,439,169) (35,200) 121,276 491,972 (10,675,084) 3,477,997 588 (589,576) (588,988) 2,889,009 (2,653,550) (6,609,890) 77,000 (9,186,440) (204,278) 2,230,071 (13,296) 2,012,497 (4,284,934) (148,895) 10,436,056 6,002,227 2011 RM (323,094) (323,094) (1,000) 324,094 323,094 Company 2010 RM (841,912) (841,912) (5,130) 847,042 841,912 -
6,968,630 852,281 (570,553) 7,250,358 (852,281) 6,398,077
6,474,595 823,462 (472,368) 6,825,689 (823,462) 6,002,227
30
NOTES TO THE FINANCIAL STATEMENTS

1. Corporate Information The principal activity of the Company is that of investment holding. The Company is a public company limited by shares, incorporated in Malaysia under the Companies Act, 1965 and domiciled in Malaysia, and is listed on the Main Market of Bursa Malaysia Securities Berhad. The principal activities of the subsidiary companies are disclosed in Note 4 to the financial statements. The registered office of the Company is located at 57-G, Persiaran Bayan Indah, Bayan Bay, Sungai Nibong, 11900 Penang. The principal place of business of the Company is located at Lot 12, Industrial Zone Phase II, Kulim Hi-Tech Park, 09000 Kulim, Kedah Darul Aman. 2. Basis of Preparation and Significant Accounting Policies (a) Basis of accounting The financial statements of the Group and of the Company have been prepared on the historical cost convention except as disclosed in the notes to the financial statements and in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia. During the financial year, the Group and the Company has adopted the following applicable new Financial Reporting Standards (FRSs), revised FRSs, Issues Committee (IC) Interpretations and amendments to FRSs, issued by the Malaysian Accounting Standards Board that are mandatory for current financial year: FRS 1 FRS 3 FRS 4 FRS 7 FRS 101 FRS 123 FRS 127 FRS 139 Amendments to FRS 2 Amendments to FRS 2 Amendments to FRS 5 Amendments to FRS 117 Amendments to FRS 132 Amendments to FRS 138 IC Interpretation 9 IC Interpretation 10 IC Interpretation 11 IC Interpretation 12 IC Interpretation 13 IC Interpretation 14 IC Interpretation 16 IC Interpretation 17 First-time Adoption of Financial Reporting Standards (revised) Business Combinations (revised) Insurance Contracts Financial Instruments: Disclosures Presentation of Financial Statements (revised) Borrowing Costs (revised) Consolidated & Separate Financial Statements (revised) Financial Instruments: Recognition and Measurement Share-based Payment-Vesting Conditions and Cancellations Share-based Payment Non-current Assets Held for Sale and Discontinued Operations Leases Financial Instruments: Presentation Intangible Assets Reassessment of Embedded Derivatives Interim Financial Reporting and Impairment FRS 2 - Group and Treasury Share Transactions Service Concession Arrangements Customer Loyalty Programmes FRS 119 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction Hedges of a Net Investment in a Foreign Operation Distributions of Non-cash Assets to Owners
Amendments to FRS1, First-time Adoption Financial Reporting Standards and FRS 127, Consolidated and Separate Financial Statements - Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate Amendments to FRS 139, Financial Instruments: Recognition and Measurement, FRS 7, Financial Instruments: Disclosures and IC Interpretation 9, Reassessment of Embedded Derivatives Amendments to FRSs contained in the document entitled Improvements to FRSs (2009) Amendments to IC Interpretation 9 Reassessment of Embedded Derivatives The new FRSs, revised FRSs, IC Interpretations and amendments to FRSs are either not applicable to the Group and to the Company or the adoptions did not result in significant changes in accounting policies of the Group and of the Company and did not have significant impact on the Group and on the Company.
31
NOTES TO THE FINANCIAL STATEMENTS (contd)

2. Basis of Preparation and Significant Accounting Policies (contd) (a) Basis of accounting (contd) The Group and the Company have not early adopted the following revised FRSs, IC Interpretations and amendments to FRSs, which have been issued as at the date of authorisation of this financial statements and will be effective for the financial periods as stated below: Effective date for financial periods beginning on or after Amendments to FRS 1 Amendments to FRS 2 Amendments to FRS 7 IC Interpretation 4 IC Interpretation 18 Limited Exemption from Comparative FRS 7 Disclosure for First-time Adopters Share-based Payment-Vesting Conditions and Cancellations Improving Disclosures about Financial Instruments Determining whether an Arrangement contains a Lease Transfers of Assets from Customers 1 January 2011 1 January 2011 1 January 2011 1 January 2011 1 January 2011 1 January 2011 1 July 2011 1 July 2011 1 January 2012 1 January 2012 1 January 2012 1 January 2012 1 January 2012 1 July 2012 1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013
Amendments to FRSs contained in the documents entitled Improvements to FRSs (2010) IC Interpretation 19 Amendments to IC Interpretation 14 IC Interpretation 15 FRS 124 Amendments to FRS 1 Amendments to FRS 7 Amendments to FRS 112 Amendments to FRS 101 FRS 9 FRS 10 FRS 11 FRS 12 FRS 13 FRS 119 FRS 127 FRS 128 IC Interpretation 20 Extinguishing Financial Liabilities with Equity Instruments Prepayment of a Minimum Funding Requirement Agreements for Construction of Real Estate Related Party Disclosures (revised) Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters Disclosures Transfers of Financial Assets Deferred Tax: Recovery of Underlying Assets Presentation of Items of Other Comprehensive Income Financial Instruments Consolidated Financial Statements Joint Arrangements Disclosure of Interests in Other Entities Fair Value Measurement Employee Benefits Separate Financial Statements Investments in Associates and Joint Ventures Stripping Costs in the Production Phase of a Surface Mine
The initial applications of the above applicable new FRSs, revised FRSs, IC Interpretations and amendments to FRSs is not expected to have any material impact on the financial statements of the Group and of the Company, except as discussed below: (i) FRS 7 Financial Instruments: Disclosures This new standard requires disclosures in financial statements that enable users to evaluate the significance of financial instruments for the entitys financial position and performance, and the nature and extent of risks arising from financial instruments to which an entity is exposed and how these risks are managed. This standard requires both qualitative disclosures describing managements objectives, policies and processes for managing those risks, and quantitative disclosures providing information about the extent to which an entity is exposed to risk, based on information provided internally to the entitys key management personnel. (ii) FRS 123 Borrowing Costs This new standard removes the option of immediately recognising as an expense borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset. However, capitalisation of borrowing costs is not required for assets measured at fair value, and inventories that are manufactured or produced in large quantities on a repetitive basis, even if they take a substantial period of time to get ready for use or sale. (iii) Amendments to FRS 117: Leases Amendments to FRS 117 sets out the new requirement where leasehold land which is in substance a finance lease will be reclassified to property, plant and equipment. The Group has reassessed and determined that all leasehold land of the Group are in substance finance leases and accordingly, has reclassified the leasehold land to property, plant and equipment. The change in accounting policy has been made retrospectively in accordance with the transitional provisions of the amendment.
32

2. Basis of Preparation and Significant Accounting Policies (contd) (a) Basis of accounting (contd) (iii) Amendments to FRS 117: Leases (contd) The following comparative figures have been restated following the adoption of the amendments to FRS 117: As at 31 August 2010 As previously As restated stated RM RM 14,072,266 12,889,994 1,182,272
Carrying amount Property, plant and equipment Prepaid lease payments (iv) FRS 139 Financial Instruments: Recognition and Measurement
This new standard establishes the principles for the recognition, derecognition and measurement of an entitys financial instruments and for hedge accounting. The impact of applying FRS 139 on the financial statements upon first adoption of this standard as required by paragraph 30(b) of FRS 108 Accounting Policies, Changes in Accounting Estimates and Errors is not required to be disclosed by virtue of exemptions provided under paragraph 103AB of FRS 139. (v) FRS 101 Presentation of Financial Statements (revised) The revised FRS 101 introduces changes in the presentation and disclosures of financial statements. The revised Standard separates owner and non-owner changes in equity. The statement of changes in equity includes only details of transactions with owners, with all non-owner changes in equity presented as a single line. The Standard also introduces the statement of comprehensive income, with all items of income and expense recognised in profit and loss, together with all other items of recognised income and expense directly in equity, either in one single statement, or on two linked statements. The Group and the Company have elected to present this statement as one single statement. There is no impact on profits for the financial year since these changes affect only the presentation of items of income and expenses. The Group and the Company have applied the transitional provisions in FRS 7 and FRS 139 which exempt entities from disclosing the possible impact arising from initial application of the respective standards on the financial statements of the Group and of the Company. (b) Functional and presentation currency These financial statements are presented in Ringgit Malaysia (RM), which is the Companys functional currency. (c) Significant accounting estimates and judgements Estimates, assumptions concerning the future and judgements are made in the preparation of the financial statements. They affect the application of the Groups accounting policies, reported amounts of assets, liabilities, income and expenses, and disclosures made. They are assessed on an on-going basis and are based on historical experience and other relevant factors, including expectations of future events that are believed to be reasonable under the circumstances. The key assumptions concerning the future and other key sources of estimation or uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are set out below. (i) Depreciation of property, plant and equipment The costs of property, plant and equipment of the Group and of the Company are depreciated on a straight-line basis over the useful life of the assets. Management estimates the useful life of the plant and equipment as disclosed in Note 2(i)(iii). These are common life expectancies applied in the industry. Changes in the expected level of usage could have impact the useful life and the residual values of these assets, therefore future depreciation charges could be revised. The carrying amounts of the Groups and of the Companys property, plant and equipment as at 31 August 2011 are disclosed in Note 3 to the financial statements. (ii) Impairment of investment in subsidiary companies The carrying values of investment in subsidiary companies and the related goodwill are reviewed for impairment. In the determination of the value in use of the investment, the Company is required to estimate the expected cash flows to be generated by the subsidiary companies and also to choose a suitable discount rate in order to calculate the present value of those cash flows. The carrying amount of the Companys investment in subsidiary companies as at 31 August 2011 is disclosed in Note 4 to the financial statements.
33

2. Basis of Preparation and Significant Accounting Policies (contd) (c) Significant accounting estimates and judgements (contd) (iii) Amortisation of development expenditure The research and development cost of the Group are amortised on a straight-line basis over the life spend of the asset. Management estimates the useful life of the assets to be 5 years. Changes in technological developments could impact the economic useful life and the residual value of this asset, therefore future amortisation charges could be revised. The carrying amounts of the Groups development expenditure as at 31 August 2011 are disclosed in Note 5 to the financial statements. (iv) 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 assets is impaired. To determine whether there is objective evidence of impairment, the Group and the Company considers factors such as the probability of significant financial difficulties of the debtor and default or significant delay in payments. Where there is objective evidence of impairment, the amount and timing of future cash flows are estimated based on historical loss experience for assets with similar credit risk characteristics. The carrying amount of the Groups and the Companys loans and receivables as at 31 August 2011 is disclosed in Notes 7 and 8 to the financial statements. (v) Income taxes There are certain transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgement is involved especially in determining tax base allowances and deductibility of certain expenses in determining the Group-wide provision for income taxes. The Group recognises liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. (d) Financial assets Financial assets are recognised on the statements of financial position when, and only when, the Group and the Company becomes 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 at fair value through profit or loss, directly attributable transaction costs. The Group and the Company determines 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. Exchange differences, interest and dividend income on financial assets at fair value through profit or loss are recognised separately in profit or loss as part of other losses or other income. Financial assets 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 whereas financial assets that are not 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.
34

2. Basis of Preparation and Significant Accounting Policies (contd) (d) Financial assets (contd) (iii) Held-to-maturity investments Financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity 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. (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 the effective interest method is recognised in profit or loss. Dividends on an available-for-sale equity instrument are recognised in profit or loss when the Groups and the Company's 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 marketplace 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 commits to purchase or sell the asset. (e) Impairment of financial assets The Group assess at the end of the 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 consider factors such as the probability of insolvency or significant financial difficulties of the receivable 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's 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 economic conditions that correlate with defaults on receivables. If any such evidence exists, the amount of impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the financial asset's 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. 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.
35

2. Basis of Preparation and Significant Accounting Policies (contd) (e) Impairment of financial assets (contd) (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 asset's 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 investments 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 if 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. (f) Financial liabilities Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. Financial liabilities, within the scope of FRS 139, are recognised on 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 and the category includes the following: (i) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include 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 Company's 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. Payables are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. Loans and borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless the Group 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 the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.
36

2. Basis of Preparation and Significant Accounting Policies (contd) (g) Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiary companies from the date that control effectively commences until the date that control effectively ceases through equity accounting which are made up to the end of the financial year. (i) Subsidiary companies Subsidiary companies are those companies in which the Group has long term equity interest and has the power, directly or indirectly, to govern the financial and operating policies so as to obtain benefits from its activities, generally accompanying a shareholding of more than one half of the voting rights. The purchase method of accounting is used to account for the acquisition of subsidiary companies. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued or liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values on the date of acquisition, irrespective of the extent of any non-controlling interests. The difference between the acquisition cost and the fair values of the subsidiary companies net assets is reflected as goodwill or reserve on consolidation as appropriate. The accounting policy on goodwill on acquisition of subsidiary companies is set out in Note 2(h). Reserve on consolidation is recognised immediately in statements of comprehensive income. Subsidiaries are consolidated from the date on which control is transferred to the Group to the date in which that control creases. Intra-group balances, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. The gain or loss on disposal of a subsidiary company is the difference between net disposal proceeds and the Groups share of its net assets together with any unimpaired balance of goodwill which were not previously recognised in the consolidated statements of comprehensive income. (ii) Non-controlling interest Non-controlling interest represents the equity in subsidiaries not attributable, directly or indirectly, to owners of the Company, and is presented separately in the statements of comprehensive income and within equity in the consolidated statement of financial position, separately from equity attributable to owners of the Company. Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in the Company owners ownership interest in subsidiary that do not result in a loss of control are accounted for as equity transactions. In such circumstances, the carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interest in the subsidiary. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the Company. (iii) Changes in Group composition Where a subsidiary issues new equity shares to minority shareholders for cash consideration and the issue price has been established at fair value, the reduction in the Groups interests in the subsidiary is accounted for as a disposal of equity interest with the corresponding gain or loss recognised in the statements of comprehensive income. When a group purchases a subsidiarys equity shares from minority shareholders for cash consideration and the purchase price has been established at fair value, the accretion of the Groups interests in the subsidiary is accounted for as a purchase of equity interest for which the acquisition accounting method of accounting is applied. The Group treats all other changes in group composition as equity transactions between the Group and its minority shareholders. Any difference between the Groups share of net assets before and after the change, and any consideration received or paid, is adjusted to or against Group reserves. (h) Goodwill arising on consolidation Goodwill arising on consolidation represents the difference between the costs of the acquisition over the fair value of the net identifiable assets of subsidiary companies acquired at the date of acquisition. The excess of the cost of acquisition over the fair value of the Groups share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the statements of comprehensive income.
37

2. Basis of Preparation and Significant Accounting Policies (contd) (h) Goodwill arising on consolidation (contd) Following the initial recognition, goodwill is measured at cost less accumulated impairment. Goodwill is not amortised but instead, it is reviewed for impairment annually or more frequently when there is objective evidence that the carrying value may be impaired, in accordance with Note 2(j). Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose. Gains or losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. (i) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. The policy for the recognition and measurement of impairment losses is in accordance with Note 2(j). (i) Recognition and measurement Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other cost 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. 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. (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 costs of the day-to-day servicing of property, plant and equipment are recognised in the statements of comprehensive income as incurred. (iii) Depreciation Depreciation is recognised in the statements of comprehensive income on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Leasehold land is depreciated over the remaining lease period. The estimated useful lives for the current and comparative periods are as follows: Building Plant, machinery and equipment Furniture and office equipment Computers Motor vehicles The depreciable amount is determined after deducting the residual value. Depreciation methods, useful lives and residual values are reassessed at each financial year end. Upon disposal of an asset, the difference between the net disposal proceeds and the carrying amount of the asset is charged or credited to the statement of comprehensive income. On disposal of a revalued asset, the attributable revaluation surplus remaining in the revaluation reserve is transferred to retained profits. (j) Impairment of non-financial assets The carrying amounts of assets are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists then the assets recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount unless the asset is carried at a revalued amount, in which case the impairment loss is recognised directly against any revaluation surplus for the asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same asset. A cashgenerating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups. Impairment losses are recognised in the statement of comprehensive income in the period in which it arises. 60 years 5 years 5 years 3 years 5 years
38

2. Basis of Preparation and Significant Accounting Policies (contd) (j) Impairment of non-financial assets (contd) The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the assets recoverable amount since the last impairment loss was recognised. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss for an asset is recognised in statement of comprehensive income, unless the asset is carried at revalued amount, in which case, such reversal is treated as a revaluation increase. (k) Research and development expenditure Research expenditure is recognised in the statements of comprehensive income as an expense when incurred. Expenditure incurred on projects to develop new products is capitalised and deferred only when the Group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the development and the ability to measure reliably the expenditure during the development. Product development which does not meet these criteria is expensed off when incurred. Capitalised development expenditure, considered to have finite useful lives, is stated at cost less accumulated amortisation and accumulated impairment losses, if any. Amortisation is calculated on a straight-line basis over the estimated commercial lives of the underlying products of 5 years. The amortisation period and method are reviewed at least at the end of each reporting period and any changes in expectations from previous estimates are accounted for prospectively as changes in accounting estimates. (l) Inventories Inventories are valued at the lower of cost and net realisable value after adequate allowance has been made for all deteriorated, damaged, obsolete or slow-moving inventories. The cost of inventories is based on the first-in first-out method and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. In the case of work-in-progress and finished goods, cost includes an appropriate share of production overheads based on normal operating capacity. Net realisable value is the estimate of the selling price in the ordinary course of business, less the costs of completion and selling expenses. (m) Hire purchase A lease is recognised as a finance lease if it transfers substantially to the Group and the Company all the risks and rewards incident to ownership. All other leases are treated as operating leases. Assets acquired by way of hire purchase or finance leases are stated at an amount equal to the lower of their fair values and the present value of the minimum lease payments at the inception of the leases, less accumulated depreciation and impairment. The corresponding liability is included in the statements of financial position as liabilities. In calculating the present value of the minimum lease payments, the discount factor used is the interest rate implicit in the lease, when it is practical to determine; otherwise, the Groups or the Companys incremental borrowing rate is used. Hire purchase payments are apportioned between the finance costs and the reduction of the outstanding liability. Finance costs, which represent the difference between the total leasing commitments and the fair value of the assets acquired, are recognised as an expense in the statements of comprehensive income over the term of the relevant lease so as to produce a constant periodic rate of charges on the remaining balance of the obligations for each accounting period. The depreciation policy for leased assets is consistent with that for depreciable property, plant and equipment which are owned. Lease rental under operating lease is charged to the statements of comprehensive income on a straight line basis over the term of the relevant lease. (n) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are capitalised as part of the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
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2. Basis of Preparation and Significant Accounting Policies (contd) (n) Borrowing costs (contd) When the borrowings are made specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation is the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of funds drawndown from that borrowing facility. When the borrowings are made generally, and used for the purpose of obtaining a qualifying asset, the borrowing costs eligible for capitalisation are determined by applying a capitalisation rate which is the weighted average of the borrowing costs applicable to the borrowings that are outstanding during the financial year. All other borrowing costs are recognised as an expense in the statements of comprehensive income in the period in which they are incurred. (o) Cash and cash equivalents Cash and cash equivalent consist of cash in hand, bank balances and deposits with banks and highly liquid investments which have an insignificant risk of changes in value. For the purpose of the statements of cash flows, cash and cash equivalent are presented net of bank overdrafts and pledged deposits, if any. (p) Share capital Ordinary shares are recorded at the nominal value and proceeds in excess of the nominal value of shares issued, if any, are accounted for as share premium. Both ordinary shares and share premium are classified as equity. Cost directly attributable to the issuance of the shares is accounted for as deduction from share premium, otherwise, it is charged to the statements of comprehensive income. When shares are repurchased, the amount of consideration paid, including directly attributable costs, is measured at cost and set off against equity. Shares repurchased and not cancelled are classified as treasury shares. Where treasury shares are reissued by re-sale in the open market, the difference between the sale consideration and the carrying amount is recognised in equity. Dividends on ordinary shares, when declared or proposed by the Director of the Company are disclosed in the notes to the financial statements. Upon approval and when paid, such dividends will be accounted for in the shareholders equity as an appropriation of unappropriated profit in the financial year in which the dividends are paid. (q) Revenue recognition Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of the revenue can be measured reliably. (i) Goods sold and services rendered Revenue from sales of goods and services measured at the fair value of the consideration receivable and is recognised when significant risk and rewards have been transferred to the buyer, if any, or upon performance of services, net of sales taxes and discounts. (ii) Rental income/Interest income Rental income and interest income are recognised as it accrues unless ability to collect is in doubt. (r) Foreign currencies Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at yearend exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statements of comprehensive income. Non-monetary items initially denominated in foreign currencies, which are carried at historical cost are translated using historical rate as at the date of acquisition and non-monetary items which are carried at fair value are translated using the exchange rate that existed when the values were determined. (s) Provision of liabilities Provisions for liabilities are recognised when the Group and of the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made. 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, the amount of a provision is the present value of the expenditure expected to be required to settle the obligation.
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2. Basis of Preparation and Significant Accounting Policies (contd) (t) Employee benefits (i) Short term employee benefits Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees of the Group and the Company. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensation absences. Short term non-accumulating compensated absences such as sick and medical leave are recognised when the absences occur. The expected cost of accumulating compensated absences is measured as additional amount expected to be paid as a result of the unused entitlement that has accumulated at the end of the reporting period. (ii) Defined contribution plans As required by law, companies in Malaysia make contributions to the state pension scheme, the Employees Provident Fund (EPF). Such contributions are recognised as an expense in the statements of comprehensive income in the period to which they relate. ( u ) Earnings per share The Group presents basis and diluted earnings per share (EPS) data for its ordinary shares. Basis EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares. ( v ) Income taxes Income tax on the profit or loss for the financial year comprises current and deferred tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the financial year and is measured using the tax rates that have been enacted at the end of the reporting period. Deferred tax is recognised on the liability method for all temporary differences between the carrying amount of an asset or liability in the statement of financial position and its tax base at the end of the reporting period. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. Deferred tax is not recognised if the temporary difference arises from goodwill or negative goodwill or from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit. Deferred tax asset and liability is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the tax rates that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it becomes probable that sufficient future taxable profit will be available. Deferred tax is recognised in the statements of comprehensive income, except when it arises from a transaction which is recognised directly in equity, in which case the deferred tax is also charged or credited directly to equity, or when it arises from a business combination that is an acquisition, in which case the deferred tax is included in the resulting goodwill or negative goodwill. (w) Segment reporting A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments.
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3. Property, Plant and Equipment Plant, machinery Furniture and and office equipment equipment Computers RM RM RM
Group 2011 Cost At 1 September 2010 - As previously stated - Effect of adopting Amendments to FRS 117 - As restated Additions Disposals At 31 August 2011 Accumulated depreciation At 1 September 2010 - As previously stated - Effect of adopting Amendments to FRS 117 - As restated Charge for the financial year Capitalised in development expenditure Disposals At 31 August 2011 Carrying amount At 31 August 2011 Group 2010 Cost At 1 September 2009 - As previously stated - Effect of adopting Amendments to FRS 117 - As restated Additions Disposals Written off At 31 August 2010 Accumulated depreciation At 1 September 2009 - As previously stated - Effect of adopting Amendments to FRS 117 - As restated Charge for the financial year - As previously stated - Effect of adopting Amendments to FRS 117 Capitalised in development expenditure Disposals Written off At 31 August 2010 Carrying amount At 31 August 2010
Note
Building RM
Leasehold land RM
Motor vehicles RM
Total RM
4,533,325 4,533,325 4,533,325
1,306,800 1,306,800 1,306,800
17,954,056 17,954,056 6,724,430 (4,441,846) 20,236,640
412,455 412,455 412,455
456,075 456,075 8,779 464,854
26,396 26,396 26,396
23,382,307 1,306,800 24,689,107 6,733,209 (4,441,846) 26,980,470
398,294 398,294 90,667 5 488,961 4,044,364
124,528 124,528 9,996 134,524 1,172,276
9,299,043 9,299,043 2,691,008 325,618 (2,955,438) 9,360,231 10,876,409
343,456 343,456 61,993 405,449 7,006
437,003 437,003 15,070 452,073 12,781
14,517 14,517 5,278 19,795 6,601
10,492,313 124,528 10,616,841 2,874,012 325,618 (2,955,438) 10,861,033 16,119,437
4,533,325 4,533,325 4,533,325
1,306,800 1,306,800 1,306,800
15,307,306 15,307,306 2,646,750 17,954,056
421,105 421,105 (8,650) 412,455
449,275 449,275 6,800 456,075
272,539
20,983,550
1,306,800 272,539 22,290,350 2,653,550 (246,143) (246,143) (8,650) 26,396 24,689,107
307,627 307,627 90,667 90,667 5 398,294 4,135,031
90,964 90,964 33,564 33,564 124,528 1,182,272
6,292,904 6,292,904 2,315,610 2,315,610 690,529 9,299,043 8,655,013
264,306 264,306 80,592 80,592 (1,442) 343,456 68,999
399,053 399,053 37,950 37,950 437,003 19,072
238,971 238,971 21,689 21,689
7,502,861 90,964 7,593,825 2,546,508 33,564 2,580,072
690,529 (246,143) (246,143) (1,442) 14,517 10,616,841 11,879 14,072,266
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3. Property, Plant and Equipment (contd) (a) Included in the property, plant and equipment of the Group are plant, machinery and equipment acquired under hire purchase with carrying amount of RM2,630,656 (2010: Nil). (b) The leasehold land and building of the Group have been pledged to licensed bank as security for credit facilities granted to a subsidiary company as disclosed in Note 15 to the financial statements. (c) The remaining period of lease term is 51 years (2010: 52 years). (d) The aggregate additional cost for the property, plant and equipment of the Group during the financial year under cash payment and hire purchase financing are as follows: Group 2011 RM Aggregate costs Less: Hire purchase financing Cash payment 6,733,209 (3,618,976) 3,114,233 2010 RM 2,653,550 2,653,550
4.
Investment in Subsidiary Companies (a) Investment in subsidiary companies Company 2011 RM In Malaysia Unquoted shares, at cost (b) The subsidiary companies and shareholdings therein are as follows: Name of company Country of incorporation Effective interest 2011 2010 % % 100 100 Principal activities 9,168,998 2010 RM 9,168,998
Direct holding: ETI Tech (M) Sdn. Bhd.
Malaysia
Research and development, design and marketing of Battery Management System for rechargeable energy storage solutions Dormant
ETI Tech International Sdn. Bhd. Indirect holding: Subsidiary company of ETI Tech (M) Sdn. Bhd. Power Mac Sdn. Bhd.
Malaysia
100
100
Malaysia
100
100
Dormant
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5. Development Expenditure Group Note Cost At 1 September Additions during the financial year Transfer from property, plant and equipment Transfer to statements of comprehensive income At 31 August Accumulated amortisation At 1 September Amortisation during the financial year At 31 August Carrying amount At 31 August Included in the development expenditure during the financial year are as follow: Depreciation of property, plant and equipment Salary Defined contribution plan 3 24 24 325,618 796,277 81,172 690,529 1,015,910 89,719 2011 RM 31,923,500 3,153,626 325,618 (543,846) 34,858,898 1,807,957 403,472 2,211,429 32,647,469 2010 RM 24,623,081 6,609,890 690,529 31,923,500 1,344,023 463,934 1,807,957 30,115,543
6.
Inventories Group 2011 RM At cost Raw material Work-in-progress Finished goods 19,727,537 1,293,984 17,826,261 38,847,782 2010 RM 9,155,196 415,405 695,693 10,266,294
7.
Trade Receivables Group 2011 RM Trade receivables Less: Accumulated impairment 31,896,537 (716,546) 31,179,991 2010 RM 46,728,153 (719,303) 46,008,850
Included in trade receivables is an amount of RM5,613 (2010: RM118,818) owing by a company in which a director of the Company has a substantial financial interest. Trade receivables are recognised at their original invoice amounts which represent their fair value on initial recognition. The Groups normal trade credit terms range from 30 to 120 days (2010: 30 to 120 days). Other credit terms are assessed and approved on a case by case basis.
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7. Trade Receivables (contd) Movements in impairment during the financial year are as follows: Group 2011 RM At beginning of the financial year Impairment during the financial year Reversal of impairment on trade receivables Bad debts written off At end of the financial year Analysis of the trade receivables ageing are as follow: Group 2011 RM Neither past due nor impair Past due less than 30 days not impaired Past due for more than 31 to 60 days not impaired Past due for more than 61 days not impaired Impaired 11,710,907 1,764,493 1,755,313 15,949,278 31,179,991 716,546 31,896,537 2010 RM 30,735,073 4,803,056 4,367,034 6,103,687 46,008,850 719,303 46,728,153 719,303 (2,757) 716,546 2010 RM 676,201 719,303 (451,642) (224,559) 719,303
The Group has not made any impairment on certain past due receivables as the Directors are of the view that the receivables are recoverable. The Groups credit exposures are concentrated mainly on 2 (2010: 3) trade receivables, which accounted for 81% (2010: 77%) of the total trade receivables as at 31 August 2011. The foreign currency exposure profile is as follows: Group 2011 RM United States Dollar (USD) 30,831,816 2010 RM 35,670,643
8.
Other Receivables Group 2011 RM Other receivables Deposits Prepayments 761,711 17,400 5,224,918 6,004,029 2010 RM 4,663,592 7,466 5,130,657 9,801,715
Other receivables are recognised at their original invoice amounts which represent their fair value on initial recognition. Included in the prepayments of the Group is an amount of RM5,078,911 (2010: RM5,045,457) representing a prepayment to acquire the materials from the suppliers. The foreign currency exposure profile is as follows: Group 2011 RM United States Dollar (USD) 2010 RM 4,111,250
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9. Amount Owing by Subsidiary Companies These represent unsecured, interest free advances and repayable on demand. 10. Fixed Deposit with A Licensed Bank The fixed deposit with a licensed bank of the Group have been pledged with a licensed bank as security for credit facility granted to a subsidiary company as disclosed in the Note 15 to the financial statements. The interest rate of fixed deposit during the financial year is bored at 3.15% (2010: 3.50%) per annum and the maturity of deposits is 365 days (2010: 365 days). 11. Cash and Bank Balances The foreign currency exposure profile is as follows: Group 2011 RM United States Dollar (USD) United Arab Emirates Dirham (AED) Euro (EUR) South Africa Rand (SAR) Singapore Dollar (SGD) Thai Baht (THB) 12. Share Capital Group/Company 2011 RM 2010 RM 122,613 21,682 8,211 6,234 2,769 151 2010 RM 4,077,152 21,682 8,211 6,234 2,769 151
Ordinary shares of RM0.10 each: Authorised At 1 September Created during the financial year At 31 August Issued and fully paid At 1 September Bonus issue during the financial year At 31 August
100,000,000 100,000,000 68,077,200 68,077,200
50,000,000 50,000,000 100,000,000 22,692,400 45,384,800 68,077,200
13.
Retained Profits/(Accumulated Losses) The movements in the reserves are reflected in the statements of changes in equity. 2011 Group RM Retained profits/(Accumulated losses) - Realised - Unrealised Less: Consolidation adjustments 38,306,473 (788,000) 37,518,473 (1,168,998) 36,349,475 Company RM (682,720) (682,720) (682,720)
The disclosure of realised and unrealised profits or losses is solely compiled in accordance to the Malaysian Institute of Accountants Guidance of Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Securities Listing Requirements issued on 20 December 2010. The disclosure of realised and unrealised profits and losses is solely for the purpose of disclosure requirements of Bursa Securities Listing Requirements, and the comparative figures are not required in the first financial year of complying with the realised and unrealised profits and losses disclosure.
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14. Hire Purchase Payables Group 2011 RM (a) Minimum hire purchase payments Within one year Between one and five years Less: Future finance charges (b) Present value of hire purchase liabilities Within one year Between one and five years Analyse as: Repayable within 12 months Repayable after 12 months 877,644 3,364,090 4,241,734 (719,051) 3,522,683 612,868 2,909,815 3,522,683 612,868 2,909,815 3,522,683 2010 RM -
The hire purchase liabilities are charged at a rate of 4.25% (2010: Nil) per annum.
15.
Bank Borrowings Group 2011 RM Secured Term loans Banker acceptances Trust receipts Bank overdraft Total bank borrowings Analysed as: Repayable within twelve months Secured Term loans Banker acceptances Trust receipts Bank overdraft Repayable after twelve months Secured Term loans 3,216,625 17,099,000 570,553 20,886,178 2010 RM 3,413,367 6,644,000 1,402,400 472,368 11,932,135
205,788 17,099,000 570,553 17,875,341
201,041 6,644,000 1,402,400 472,368 8,719,809
3,010,837 20,886,178
3,212,326 11,932,135
The above credit facilities obtained from licensed banks are secured by the following: (a) Legal charge over the leasehold land and building of a subsidiary company as disclosed in Note 3 to the financial statements; and (b) Pledged of fixed deposit with a licensed bank as disclosed in Note 10 to the financial statements.
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15. Bank Borrowings (contd) Maturity of bank borrowings is as follows: Group 2011 RM Within one year Between one and two years Between two and three years Between three and four years Between four and five years After five years 17,875,341 221,544 238,506 256,766 276,425 2,017,596 20,886,178 2010 RM 8,719,809 215,789 231,619 248,610 266,847 2,249,461 11,932,135
Range of interest rates is as follows: Group 2011 % Term loans Banker acceptances Trust receipts Bank overdraft 7.40 3.31 - 4.96 9.10 2010 % 7.10 4.50 - 5.00 7.55 8.80
16.
Deferred Tax Liabilities Group 2011 RM At 1 September Relating to origination and reversal of temporary differences (Over)/Under provision in prior years At 31 August The component and movement of the deferred tax liabilities of the Group are as follows: Accelerated capital allowances RM At 1 September 2010 Relating to origination and reversal of temporary differences Over provision in prior years At 31 August 2011 At 1 September 2009 Relating to origination and reversal of temporary differences Under provision in prior years At 31 August 2010 284,000 225,000 (67,000) 442,000 184,000 100,000 284,000 Development expenditure RM 200,000 146,000 346,000 67,000 70,000 63,000 200,000 484,000 371,000 (67,000) 788,000 2010 RM 251,000 170,000 63,000 484,000
Total RM 484,000 371,000 (67,000) 788,000 251,000 170,000 63,000 484,000
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17. Trade Payables The Groups normal trade credit terms range from 30 to 60 days (2010: 30 to 60 days). Other credit terms are assessed and approved on a case to case basis. The foreign currency exposure profile is as follows: Group 2011 RM United States Dollar (USD) 1,045,136 2010 RM 1,976,414
18.
Other Payables Group 2011 RM Other payables Deposits Advance payment from customers Accruals 801,007 7,000 278,968 179,904 1,266,879 2010 RM 498,782 4,000 748,367 491,191 1,742,340 2011 RM 44,938 34,000 78,938 Company 2010 RM 66,938 13,000 79,938
The foreign currency exposure profile is as follows: Group 2011 RM United States Dollar (USD) 504,872 2010 RM 171,379
19.
Revenue This represents invoiced value of goods sold less trade returns and discounts, if any.
20.
Finance Costs Group 2011 RM Interest expenses on: Bank overdrafts Term loans Banker acceptances and trust receipts Hire purchase 70,358 240,190 817,073 49,981 1,177,602 2010 RM 25,395 232,653 329,808 1,720 589,576
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21. Profit/(Loss) before Taxation Profit/(Loss) before taxation is derived after charging/(crediting): Group 2011 RM Auditors remuneration - current year - over provision in prior year Amortisation of development expenditure Depreciation of property, plant and equipment Directors remuneration - fees - salaries and other emoluments - defined contribution plan Impairment on trade receivables Loss on foreign exchange - realised - unrealised Property, plant and equipment written off Rental of premises Bad debts recovered Gain on disposal of property, plant and equipment Reversal of impairment on trade receivables Fixed deposit interest income Rental income 91,000 (12,000) 403,472 2,874,012 138,000 728,860 84,960 334,777 909,834 520 (9,150) (2,757) (28,820) (26,000) 2010 RM 85,000 463,934 2,580,072 169,000 729,860 84,960 719,303 2,344,840 482,445 7,208 55,220 (9,000) (77,000) (451,642) (20,673) (24,000) 2011 RM 23,000 138,000 19,000 Company 2010 RM 22,000 169,000 20,000 -
22.
Taxation Group 2011 RM Tax expense for the financial year: Over provision in prior year Deferred tax: Relating to origination and reversal of temporary differences (Over)/Under provision in prior years 371,000 (67,000) 304,000 304,000 2010 RM (26,000) 170,000 63,000 233,000 207,000
Income tax is calculated at the statutory tax rate of 25% (2010: 25%) of the estimated assessable profit/(loss) for the financial year. A subsidiary company, ETI Tech (M) Sdn. Bhd., has been granted Multimedia Super Corridor (MSC) status by Multimedia Development Corporation Sdn. Bhd. By virtue of its MSC status, the subsidiary company has also been granted pioneer status by the Ministry of International Trade and Industry Malaysia. Under this incentive, 100% of the subsidiary companys statutory income from the pioneer products is exempted from income tax for a period of 10 years commencing from 15 July 2003. A reconciliation of income tax expense applicable to profit/(loss) before taxation at the statutory income tax rate to income tax expense at the effective income tax rate of the Group and of the Company are as follows: Group 2011 RM Profit before taxation Taxation at statutory tax rate of 25% (2010: 25%) Expenses not deductible for tax purposes Income exempted under pioneer status Income not subject to tax Deferred tax assets not recognised Over provision of taxation in respect of prior year (Over)/Under provision of deferred taxation in respect of prior years Tax expense for the financial year 4,049,281 1,012,319 473,692 (1,112,909) (2,977) 875 (67,000) 304,000 2010 RM 9,859,858 2,464,965 508,739 (2,676,209) (128,250) 755 (26,000) 63,000 207,000
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22. Taxation (contd) Company 2011 RM Loss before taxation Taxation at statutory tax rate of 25% (2010: 25%) Expenses not deductible for tax purposes Tax expense for the financial year (323,094) (80,774) 80,774 2010 RM (841,912) (210,478) 210,478 -
23.
Earnings Per Shares The earnings per share has been calculated based on the consolidated profit for the financial year attributable to the equity holders of the parent of RM3,745,281 (2010: RM9,652,858) and the weighted average number of ordinary shares in issue during the financial year of 680,772,000 (2010: 680,772,000). Group 2011 RM Profit for the financial year attributable to the equityholders of parent Number of shares in issue Effect of bonus issue Weighted number of ordinary shares in issue Basic earnings per share (sen) 3,745,281 680,772,000 680,772,000 0.55 2010 RM 9,652,858 226,924,000 453,848,000 680,772,000 1.42
The dilution earnings per share equal the basic earnings per share as the Company did not have any dilutive potential ordinary shares during the financial year.
24.
Staff Costs Group Note Staff costs (excluding Directors) Recognised in statements of comprehensive income Capitalised in development expenditure Total staff costs for the financial year 2011 RM 2,366,056 877,449 3,243,505 2010 RM 2,873,108 1,105,629 3,978,737
Included in the staff costs (excluding Directors) are contributions made to the Employees Provident Fund under a defined contribution plan of the Group amounting to RM194,571 (2010: RM200,893). 25. Related Party Disclosures (a) In addition to the transactions detailed elsewhere in the financial statements, the Group and the Company had the following transactions with related parties during the financial year. Group 2011 RM * Related Parties: Sales of goods 417,348 2010 RM 119,382
The Directors are of the opinion that all the transactions above have been entered into in the normal course of business and have been established on terms and conditions that are not materially different from those obtainable in transactions with unrelated parties. * The nature and relationship between the Company and the related parties are those companies in which a Director of the Company has financial interest.
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25. Related Party Disclosures (contd) (b) (c) Information regarding outstanding balances arising from related party transactions as at 31 August 2011 is disclosed in Notes 7 and 9 to the financial statements. Information regarding the compensation of key management personnel is as follows: Group 2011 RM Short-term employee benefits 951,820 2010 RM 983,820 2011 RM 157,000 Company 2010 RM 189,000
Key management personnel include personnel having authority and responsibility for planning, directing and controlling the activities of the entity, including any Director of the Company.
26.
Segmental reporting Segment assets Segment assets information is neither included in the internal management reports nor provided regularly to the Executive Director. Hence no disclosure is made on segment assets. Segment liabilities Segment liabilities information is neither included in the internal management reports nor provided regularly to the Executive Director. Hence no disclosure is made on segment liability. All the inter-segment transactions were carried out on normal commercial basis and in the ordinary course of business. (a) Geographical segments In determining the geographical segments of the Group, segment revenue is based on the geographical location of customers. Group 2011 RM Malaysia China (including Hong Kong) Taiwan Others 23,474,317 24,007,928 10,448,609 63,729 57,994,583 2010 RM 16,594,057 36,195,734 18,653,476 2,582,649 74,025,916
(b) Major customers The following are major customers with revenue equal or more than 10% of the Groups revenue: Group 2011 RM Customer I Customer II Customer III Customer IV 9,951,691 10,448,609 14,019,530 20,704,920 2010 RM 21,338,486 18,653,476 14,744,672 14,711,800
27.
Capital Commitments Group 2011 RM Approved and contracted but not provided for Property, plant and equipment 7,989,000 2011 RM 7,989,000
52

28. Contingent Liabilities Unsecured The Company has issued corporate guarantee to financial institutions for credit facilities granted to a subsidiary company up to a total limit of approximately RM40,463,000 (2010: RM23,822,000). 29. Significant Events During the financial year, the following significant events took place for the Group: ETI Tech (M) Sdn. Bhd. (a) On 19 January 2010, the Company entered to the Memorandum of Understanding (MoU) with Sirim Berhad to establish a partnership to develop the necessary testing technology and safety approval standards for the medium to high power lithium based battery for various industry applications e.g., solar, electric vehicles and other applications in the domestic as well as international markets. On 11 April 2011, the Company entered to the MoU with Universiti Malaysia Sarawak (UNIMAS) and Green Electric Sdn. Bhd. (GESB) to develop technical knowledge and technology transfer, expertise and research co-operation and also to promote mutual understanding for the joint development and promotion of GenSet Hybrid System to the Ministry of Education (MOE) for the rural schools in Sarawak. On 25 August 2010, the Company entered to the MoU with Kokam Co. Ltd (Kokam) to set forth the basic principles upon which the definitive agreement(s) will be entered into by the Company and Kokam for the collaboration of providing lithium based battery pack to be applied in the Off-Grid Solar Energy Storage systems and related services. On 25 August 2011, the Company and Kokam have mutually agreed to further extend the MoU for another term of six (6) months from 25 August 2011 to 25 February 2012. 30. Financial Instruments Certain comparative figures have not been presented for 31 August 2010 by virtue of the exemption given in the paragraph 44AA of FRS 7, which is effective for annual periods beginning on and after 1 January 2010. (a) 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 2 describe how the 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: Loans and receivables RM Financial liabilities at amortised cost RM
(b)
(c)
Group 2011 Financial Assets Trade receivables Other receivables Fixed deposit with a licensed bank Cash and bank balances Total financial assets Financial Liabilities Trade payables Other payables Hire purchase payables Bank borrowings Total financial liabilities
Total RM
31,179,991 6,004,029 852,281 6,968,630 45,004,931 -
1,729,204 1,266,879 3,522,683 20,886,178 27,404,944
31,179,991 6,004,029 852,281 6,968,630 45,004,931 1,729,204 1,266,879 3,522,683 20,886,178 27,404,944
53

30. Financial Instruments (contd) (a) Classification of financial instruments (contd) Loans and receivables RM 46,008,850 9,801,715 823,462 6,474,595 63,108,622 Financial liabilities at amortised cost RM 2,722,856 1,742,340 11,932,135 16,397,331
2010 Financial Assets Trade receivables Other receivables Fixed deposits with a licensed bank Cash and bank balances Total financial assets Financial Liabilities Trade payables Other payables Bank borrowings Total financial liabilities Company 2011 Financial Asset Amount owing by subsidiary companies Financial Liability Other payables 2010 Financial Asset Amount owing by subsidiary companies Financial Liability Other payables (b) Financial assets/(liabilities) at fair value through profit or loss
Total RM 46,008,850 9,801,715 823,462 6,474,595 63,108,622 2,722,856 1,742,340 11,932,135 16,397,331
58,304,420 -
78,938
58,304,420 78,938
58,628,514 -
79,938
58,628,514 79,938
There is no fair value through profit or loss has been imposed as the Group and the Company credit risks and liquidity risk are within the acceptable collection/payment period. (c) Capital risk management objectives and policies The Groups management manages its capital to ensure that the Group is able to continue as a going concern and maintains an optimal capital structure so as to maximise shareholder value. The management reviews the capital structure by considering the cost of capital and the risks associated with the capital. The capital of the Group consists of issued capital, fixed deposit and cash and bank balances. The Group is not subject to any externally imposed capital requirements. (d) Financial risk management objectives and policies The Groups and the Companys financial risk management policy is to ensure that adequate financial resources are available for the development of the Groups and the Companys operations whilst managing its financial risks, including foreign currency exchange risk, credit risk, liquidity risk and market risks. The Group and the Company operate within clearly defined guidelines that are approved by the Board and the Groups and the Companys policy is not to engage in speculative transactions. (e) Credit risk Fixed deposit with a licensed bank, cash and bank balances are placed with a credit worthy financial institution. Credit risk arises mainly from the inability of its customers to make payments when due. The Group and the Company has adopted a policy of only dealing with creditworthy counterparties. Receivables are monitored on an ongoing basis via Companys management reporting procedures and action will be taken for long outstanding debts.
54

30. Financial Instruments (contd) (e) Credit risk (contd) The carrying amounts of the financial assets recorded on the statements of financial position at the end of the reporting period represents the Groups and the Companys maximum exposure to credit risk in relation to financial assets. No financial assets carry a significant exposure to credit risk. The Group credit exposure is disclosed in Note 7 to the financial statements. (f) Liquidity risk The Groups and the Companys funding requirements and liquidity risk are managed with the objective of meeting business obligations on a timely basis. The Group and the Company monitors its cash flows and ensures that sufficient funding is in place to meet the obligations as and when they fall due. The following table analyses the remaining contractual maturity for non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group and the Company can be required to pay. On demand or within 1 year RM Group 2011 Trade payables Other payables Hire purchase payables Bank borrowings 2010 Trade payables Other payables Bank borrowings Company 2011 Other payables 2010 Other payables 1 - 2 years RM 2 - 5 years RM After 5 years RM Total RM
1,729,204 1,266,879 612,868 17,875,341 21,484,292 2,722,856 1,742,340 8,719,809 13,185,005
673,409 221,544 894,953 215,789 215,789
2,236,406 771,697 3,008,103 747,076 747,076
2,017,596 2,017,596 2,249,461 2,249,461
1,729,204 1,266,879 3,522,683 20,886,178 27,404,944 2,722,856 1,742,340 11,932,135 16,397,331
78,938 79,938
78,938 79,938
(g)
Market risks (i) Foreign currency exchange risk The Group incurs foreign currency risk on transactions that are denominated in foreign currencies. The currencies giving rise to this risk are primarily the United States Dollar (USD), United Arab Emirates Dirham (AED), Euro (EUR), South Africa Rand (SAR), Singapore Dollar (SGD) and Thai Baht (THB).
55

30. Financial Instruments (contd) (g) Market risks (contd) (i) Foreign currency exchange risk (contd) The carrying amounts of the Groups foreign currency denominated financial assets and financial liabilities at the end of the reporting period are as follows: Trade receivables RM 2011 USD AED EUR SAR SGD THB 2010 USD AED EUR SAR SGD THB 30,831,816 35,670,643 Financial Assets Other Cash and bank receivables balances RM RM 4,111,250 122,613 21,682 8,211 6,234 2,769 151 4,077,152 21,682 8,211 6,234 2,769 151 Financial Liabilities Other payables RM 504,872 171,379
Total RM 30,954,429 21,682 8,211 6,234 2,769 151 43,859,045 21,682 8,211 6,234 2,769 151
Trade payables RM 2011 USD 2010 USD (ii) Foreign currency risk sensitivity 1,045,136 1,976,414
Total RM 1,550,008 2,147,793
A 10% strengthening of Ringgit Malaysia against the following foreign currencies at the end of the reporting period would increase/(decrease) the profit before taxation and other comprehensive income by the amounts shown below. This analysis assumes that all other variables remain unchanged. Group 2011 RM (2,940,442) (2,168) (821) (623) (277) (15)
Profit before taxation USD AED EUR SAR SGD THB
A 10% weakening of Ringgit Malaysia against the above foreign currencies at the end of the reporting period would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain unchanged.
56

30. Financial Instruments (contd) (g) Market risks (contd) (iii) Interest rate risk The Group obtains financing through other financial liabilities. The Groups policy is to obtain the financing with the most favourable interest rates in the market. The Group constantly monitors its interest rate risk and does not utilise interest swap contracts or other derivative instruments for trading or speculative purposes. At the end of the reporting period, there were no such arrangements, interest rate swap contracts or other derivative instruments outstanding. The carrying amounts of the Groups financial instruments that are exposed to interest rate risk are as follows: Group 2011 RM 2010 RM
Group Financial Asset Fixed deposit with a licensed bank Financial Liability Bank borrowings
852,281 20,886,178
823,462 11,932,135
The Group is exposed to interest rate risk arising from its short and long term debts obligations, and its fixed deposits. Fixed deposits interest rate is insignificant and any fluctuations in the rate would have no material impact on the results of the Group. (iv) Interest rate risk sensitivity An increase in market interest rates by 1% on financial assets and liabilities of the Group and of the Company which have variable interest rates at the end of the reporting period would decrease the profit before tax by RM200,339. 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 and of the Company 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. (h) Fair values of financial assets and financial liabilities (i) The carrying amounts of financial assets and financial liabilities, as reported in the financial statements, approximate their respective fair values. The carrying amount of these financial assets and financial liabilities are reasonable approximation of fair values, either due to their short-term nature or that they are floating rate instruments that are re-priced to market interest rates on or near the end of the reporting period. (ii) Fair value of financial instruments by categories that are not carried at fair value and whose carrying amounts are not reasonable approximation of fair value. 2011 Carrying amount RM Fair value RM Carrying amount RM 2010 Fair value RM
Group Financial Liabilities - Non Current Hire purchase payables
2,909,815
2,918,997
57

31. Comparative Figures The financial statements of the Group and of the Company for the financial year ended 31 August 2010 which are presented for comparative purposes were examined and reported on by another firm of auditors who have rendered a unqualified opinion on those financial statements in their report dated 23 December 2010. Certain comparative figures have been reclassified where necessary to conform with the current year presentation. As previously stated RM Group Statements of financial position Non-current assets Property, plant and equipment Prepaid lease payments Current assets Trade receivables Other receivables Prepayments Trade and other receivables Fixed deposits with a licensed bank Cash and bank balances Cash and cash equivalents Current liabilities Trade payables Other payables Trade and other payables Advance payments from customers Statements of cash flows (Increase)/Decrease in working capital Trade receivables Other receivables Receivables and prepayments Trade payables Other payables Payables and advance payments Reclassification RM As restated RM
12,889,994 1,182,272 5,130,657 50,679,908 7,298,057 3,716,829 748,367
1,182,272 (1,182,272) 46,008,850 9,801,715 (5,130,657) (50,679,908) 823,462 6,474,595 (7,298,057) 2,722,856 1,742,340 (3,716,829) (748,367)
14,072,266 46,008,850 9,801,715 823,462 6,474,595 2,722,856 1,742,340 -
(8,474,369) 613,248
(8,439,169) (35,200) 8,474,369 121,276 491,972 (613,248)
(8,439,169) (35,200) 121,276 491,972 -
32.
Date of Authorisation for Issue The financial statements of the Group and of the Company for the financial year ended 31 August 2011 were authorised for issue in accordance with a resolution of the Board of Directors on 21 December 2011.
58
LIST OF PROPERTY
Save as disclosed below, whereby ETICB is the lease owner, the ETICB Group does not own any landed property as at the date of this Annual Report:No Name of Registered Owner / Postal Address / Title Identification Perbadanan Kemajuan Negeri Kedah Lease of part of H.S.(D) 1708 P.T. No. 1950, Mukim Padang China, Daerah Kulim, Kedah Darul Aman situated at Lot No. 12, Industrial Zone Phase II, Kulim High Tech Park, Kedah Darul Aman, Malaysia Bearing Postal Address: Lot No. 12, Industrial Zone Phase II Kulim Hi-Tech Park 09000 Kulim Kedah Darul Aman Malaysia * The ETICB Group has yet to execute the lease for the remaining portion of the land measuring 29,833 m2. Approx Age of Building / Tenure / Date of Expiry of Lease Leasehold of thirty (30) years expiring on 25.12. 2034 Land Area / Build Up Area (m2) 39,950* / 3,809 Net Book Value as at 31 August 2011 RM 5,216,640.00 Year of Valuation / Acquisition December 2004
Description / Existing Use Double storey factory with office building to house our design and R&D center
1.
59
STATISTICS OF SHAREHOLDINGS
SHARE CAPITAL AS AT 30 DECEMBER 2011 Authorized Capital Issued and Paid-up Capital Class of Shares Voting Rights : RM100,000,000.00 : RM68,077,200.00 : Ordinary Shares of RM0.10 each : One voting right for one ordinary share
DISTRIBUTION OF SHAREHOLDERS AS AT 30 DECEMBER 2011 Size of Holdings Less Than 100 100 1,000 1,001 to 10,000 10,001 100,000 100,001 34,038,599 34,038,600 and above Total No. of Holders 6 789 1,469 2,357 517 3 5,141 % 0.12 15.35 28.57 45.85 10.06 0.06 100.00 No. of Shares 12 272,968 10,677,916 92,735,744 353,734,374 223,350,844 680,772,000 % 0.00 0.04 1.57 13.62 51.96 32.81 100.00
THIRTY (30) LARGEST SECURITIES HOLDERS AS AT 30 DECEMBER 2011 No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Name Al Yousuf L.L.C. OSK Nominees (Tempatan) Sdn Berhad Pledged Securities Account for Dennis Chuah OSK Nominees (Tempatan) Sdn Berhad Pledged Securities Account for Lee Kah Kheng Nor Ashikin Binti Khamis Siti Munajat Binti Md Ghazali Kamarudin Bin Meranun Compugates Holdings Berhad Tuanku Jaafar Ibni Tuanku Abdul Rahman Alliancegroup Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Goh Kheng Peow (8026769) Amsec Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Lee Kah Kheng (MX2636) Koperasi Permodalan Felda Malaysia Berhad Mansor Bin Padzin Chin Chin Seong Mayban Securities Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Raja Zainal Abidin Bin Raja Hussin (REM 672) HLB Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Lee Chiah Cheang OSK Nominees (Tempatan) Sdn Berhad OSK Capital Sdn Bhd for Ng Huat Tian Ho Swee Choon Sumdin @ Shamshudin Bin Nor Lee Chai Eng Alliancegroup Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Ng See Cheng (8040841) Goh Sock Sin Yeoh Li Hua Mayban Nominees (Tempatan) Sdn. Bhd. Pledged Securities Account for Muhammad Ainuddin Bin Ramli Kenanga Nominees (Asing) Sdn Bhd Pledged Securities Account for Hsu,Chin-Shui M.N.Thamatanthi A/P M.Nardysamy Kenanga Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Dennis Chuah HDM Nominees (Tempatan) Sdn. Bhd. Pledged Securities Account for Toh Pik Chai (M05) Yeoh Cheor Eng Mayban Nominees (Tempatan) Sdn. Bhd. Yeoh Li Hua HLG Nominee (Tempatan) Sdn. Bhd. Pledged Securities Account for Goh Sock Sin Total Shareholdings 101,547,000 72,815,822 48,988,622 34,000,000 34,000,000 31,399,300 23,337,100 13,500,000 6,188,300 5,000,000 5,000,000 4,850,448 4,000,000 3,459,400 3,350,000 3,320,000 3,209,800 3,000,000 2,540,000 2,500,000 2,306,000 2,136,270 2,048,300 1,905,100 1,880,000 1,853,200 1,850,000 1,850,000 1,800,000 1,725,000 425,359,062 % 14.92 10.70 7.20 4.99 4.99 4.61 3.43 1.98 0.91 0.73 0.73 0.71 0.59 0.51 0.49 0.49 0.49 0.44 0.37 0.37 0.34 0.31 0.30 0.28 0.28 0.27 0.27 0.27 0.26 0.25 62.48
60
STATISTICS OF SHAREHOLDINGS (contd)

SUBSTANTIAL SHAREHOLDERS AS AT 30 DECEMBER 2011 Name Al Yousuf L.L.C Dennis Chuah Lee Kah Kheng Yeoh Li Hua Iqbal Yousuf Habib Al Yousuf Notes:
1 2
Direct Shareholding 101,547,000 75,318,422 53,988,622 3,936,270 -
% 14.92 11.06 7.93 0.58 -
Indirect Shareholding 3,936,2701 53,988,6221 101,547,0002
% 0.58 7.93 15.00
Deemed interest under Section 122A of the Companies Act, 1965 by virtue of his/her spouses shareholding in ETICB. Deemed interested by virtue of his substantial shareholding in Al Yousuf L.L.C.
DIRECTORS SHAREHOLDING AS AT 30 DECEMBER 2011 Name Dato Ahmad Shukri Bin Tajuddin Lee Kah Kheng Dennis Chuah Khor Yee Kwang Nordin Bin Mohamad Desa Baqir Hussain Bin Hatim Ali Lim Mei Theng
1
Direct Shareholding 300,000 53,988,622 75,318,422 36,072 -
% 0.04 7.93 11.06 0.01 -
Indirect Shareholding 3,936,2701 -
% 0.58 -
Deemed interest under Section 122A of the Companies Act, 1965 by virtue of his spouses shareholding in ETICB.
61
NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN that the Seventh Annual General Meeting of the Company will be held at Burma Room (Lobby Level), Evergreen Laurel Hotel of 53 Persiaran Gurney, 10250 Penang on Monday, 27 February 2012 at 10 a.m. for the following purposes:AGENDA 1. 2. 3. 4. To receive the Audited Financial Statements for the year ended 31 August 2011 together with the Directors and Auditors Reports thereon. To approve the payment of additional Directors Fees of RM2,000/- for the year ended 31 August 2011. To approve the payment of Directors Fees up to RM132,000 for the year ending 31 August 2012. To re-elect the following directors retiring under the respective provision of the Articles of Association of the Company, and who, being eligible offer themselves for re-election:a. Dato Dennis Chuah [Article 85] b. Dato Ahmad Shukri Bin Tajuddin [Article 85] c. Baqir Hussain Bin Hatim Ali [Article 85] d. Nordin Bin Mohamad Desa [Article 85] e. Lim Mei Theng [Article 92] To re-appoint Messrs. UHY as Auditors of the Company for the ensuing year and to authorize the Directors to fix their remuneration. AS SPECIAL BUSINESS 6. To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:Authority to Issue Shares That pursuant to Section 132D of the Companies Act, 1965, the Articles of Association of the Company and approvals from Bursa Malaysia Securities Berhad (Bursa Securities) and other relevant governmental/ regulatory authorities where such authority shall be necessary, the Board of Directors be and is hereby authorized 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, deems 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 and is also empowered to obtain the approval for the listing of and quotation for the additional shares so issued on the Main Market of Bursa Securities. 7. To transact any other business of which due notice shall have been given in accordance with the Companies Act, 1965. (Resolution 9) (Please refer to Note A) (Resolution 1) (Resolution 2)
(Resolution 3) (Resolution 4) (Resolution 5) (Resolution 6) (Resolution 7) (Resolution 8)
5.
By Order of the Board HOW WEE LING (MAICSA 7033850) OOI EAN HOON (MAICSA 7057078) Secretaries Penang Date: 3 February 2012
62
NOTICE OF ANNUAL GENERAL MEETING (contd)

NOTES: 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. Proxy A Member of the Company entitled to attend and vote is entitled to appoint up to two (2) proxies to attend and vote in his place. A proxy may but need not be a Member and the provisions of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company. If a Member appoints two (2) proxies, the appointments shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy. The instrument appointing the proxy shall be in writing, executed by or on behalf of the appointor. In the case of a corporate member, the instrument appointing a proxy must be either under its common seal or under the hand of its officer or attorney duly authorized. The instrument appointing a proxy must be deposited at the Registered Office, 57-G Persiaran Bayan Indah, Bayan Bay, Sungai Nibong, 11900 Penang at least 48 hours before the time for holding the Meeting or any adjournments thereof. Explanatory Note On Special Business: 1. Resolution pursuant to the Authority to issue Shares The proposed Resolution No. 9 [Item 6)], if passed, will grant a renewed general mandate (Mandate 2012) 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 2012 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 Sixth 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. Director standing for election Pursuant to Para 8.27(2) of the Bursa Securities Listing Requirements, the details of Ms. Lim Mei Theng, a director standing for election is set out on page 7 of this Annual Report.
PROXY FORM
No of ordinary shares held
I/We
(*NRIC No./Company No
) of
being a *Member/Members of ETI TECH CORPORATION BERHAD hereby appoint (Proxy 1) (*NRIC No./Passport No. and*/ or failing him* (Proxy 2) ) of (*NRIC No./Passport No. ) of
and*/or failing him*, the Chairman of the Meeting as my/our proxy to vote for me/us and on my/our behalf at the Seventh Annual General Meeting of the Company to be held at the Burma Room (Lobby Level), Evergreen Laurel Hotel of 53 Persiaran Gurney, 10250 Penang on Monday, 27 February 2012 at 10.00 a.m. or at every adjournment thereof to vote as indicated below:The proportions of my/our holdings to be represented by our proxy(ies) are as follows:Proxy 1 Proxy 2 % % 100% In case of a vote by show of hands, Proxy 1*/Proxy 2* shall vote on our behalf.
* Strike out whichever is inapplicable (Please indicate with an X in the space provided below 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. To approve the payment of additional Directors Fees of RM2,000 for the year ended 31 August 2011. 2. To approve the payment of Directors Fees up to RM132,000 for the year ending 31 August 2012. To re-elect the following directors retiring under the respective provision of the Articles of Association of the Company:3. Dato Dennis Chuah [Article 85] 4. Dato Ahmad Shukri Bin Tajuddin [Article 85] 5. Baqir Hussain Bin Hatim Ali [Article 85] 6. Nordin Bin Mohamad Desa [Article 85] 7. Lim Mei Theng [Article 92] 8. To re-appoint Messrs. UHY as Auditors of the Company for the ensuing year and to authorize the Directors to fix their remuneration. To pass the following resolution as Special Business :9. Ordinary Resolution Authority to Issue Shares pursuant to Section 132D of the Companies Act, 1965. FOR AGAINST
Signature of Shareholder(s) . Signed this ......... day of...., 2012 Notes: A Member of the Company entitled to attend and vote is entitled to appoint up to two (2) proxies to attend and vote in his place. A proxy may but need not be a Member and the provisions of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company. If a Member appoints two (2) proxies, the appointments shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy. The instrument appointing the proxy shall be in writing, executed by or on behalf of the appointor. In the case of a corporate member, the instrument appointing a proxy must be either under its common seal or under the hand of its officer or attorney duly authorised. The instrument appointing a proxy must be deposited at the Registered Office, 57-G Persiaran Bayan Indah, Bayan Bay, Sungai Nibong, 11900 Penang, Malaysia at least 48 hours before the time for holding the Meeting or any adjournments thereof.
Please fold across the lines and close
stamp
The Company Secretaries

ETI TECH CORPORATION BERHAD 57-G Persiaran Bayan Indah Bayan Bay, Sungai Nibong 11900 Penang
Please fold across the lines and close

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CONTENTS

ETI TECH CORPORATION BERHAD (667845-M)

CORPORATE VISION, MISSION, OBJECTIVES AND STRATEGY

ETI TECH CORPORATION BERHAD (667845-M)

ETI TECH CORPORATION BERHAD (667845-M)

ETI TECH CORPORATION BERHAD

ETI Tech Corporation Berhad (ETICB)

ETI Tech International Sdn Bhd (A Wholly-Owned Subsidiary Company of ETICB)

ETI Tech Homes Sdn Bhd (A 51%-Owned Subsidiary Company of ETICB)

Power Mac Sdn Bhd (A Wholly-Owned Subsidiary Company of ETI Tech)

Name ETI Tech (M) Sdn Bhd (ETI Tech)

Power Mac Sdn Bhd (A wholly owned subsidiary of ETI Tech)

21 March 2005/ Malaysia

ETI Tech International Sdn Bhd

14 March 2006/ Malaysia

ETI Tech Homes Sdn. Bhd.

3 January 2012 / Malaysia

ETI TECH CORPORATION BERHAD (667845-M)

ETI TECH CORPORATION BERHAD (667845-M)

PROFILE OF DIRECTORS (contd)

ETI TECH CORPORATION BERHAD (667845-M)

PROFILE OF DIRECTORS (contd)

ETI TECH CORPORATION BERHAD (667845-M)

ETI TECH CORPORATION BERHAD (667845-M)

CHAIRMANS STATEMENT (contd)

ETI TECH CORPORATION BERHAD (667845-M)

CORPORATE GOVERNANCE STATEMENT

ETI TECH CORPORATION BERHAD (667845-M)

CORPORATE GOVERNANCE STATEMENT (contd)

ETI TECH CORPORATION BERHAD (667845-M)

CORPORATE GOVERNANCE STATEMENT (contd)

ETI TECH CORPORATION BERHAD (667845-M)

CORPORATE GOVERNANCE STATEMENT (contd)

ETI TECH CORPORATION BERHAD (667845-M)

AUDIT COMMITTEE REPORT

ETI TECH CORPORATION BERHAD (667845-M)

AUDIT COMMITTEE REPORT (contd)

ETI TECH CORPORATION BERHAD (667845-M)

AUDIT COMMITTEE REPORT (contd)

ETI TECH CORPORATION BERHAD (667845-M)

STATEMENT ON INTERNAL CONTROL

ETI TECH CORPORATION BERHAD (667845-M)

Related Parties ETI Tech AYD (Principal) (Distributor)

Supply of battery pack to Eclimo

ETI TECH CORPORATION BERHAD (667845-M)

STATEMENT OF DIRECTORS RESPONSIBILITIES

ETI TECH CORPORATION BERHAD (667845-M)

ETI TECH CORPORATION BERHAD (667845-M)

DIRECTORS REPORT (contd)

ETI TECH CORPORATION BERHAD (667845-M)

DIRECTORS REPORT (contd)

LEE KAH KHENG

DATO DENNIS CHUAH

KUALA LUMPUR 21 DEC 2011

ETI TECH CORPORATION BERHAD (667845-M)

LEE KAH KHENG KUALA LUMPUR 21 DEC 2011

DATO DENNIS CHUAH

LEE KAH KHENG

Before me Arshad Abdullah COMMISSIONER FOR OATHS 21 DEC 2011

ETI TECH CORPORATION BERHAD (667845-M)

INDEPENDENT AUDITORS REPORT

ETI TECH CORPORATION BERHAD (667845-M)

STATEMENTS OF FINANCIAL POSITION