Professional Documents
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WE I DA (M ) BHD.
(5 0 4 7 47-W )
Annual Report
2017
ANNUAL REPORT 2 01 7
A B ALA N C E D S US TAIN AB LE GR O W T H
MALAYSIA www.weida.com.my
FINANCIAL STATEMENTS
MALAYSIA
56 Directors’ Report
60 Statement by Directors
60 Statutory Declaration
61 Independent Auditors’ Report
67 Statements of Financial Position
68 Statements of Profit or Loss and Other Comprehensive Income
70 Consolidated Statement of Changes in Equity REPUBLIC OF THE PHILIPPINES www.weida.com.ph
74 Statement of Changes in Equity
75 Statements of Cash Flows
78 Notes to the Financial Statements MANILA
161 List of Properties Manufacturing plant:
163 Analysis of Shareholdings 3/F, BT & T Center, Lot 11 & 13, Block 3,
20E. Rodriguez Jr. Avenue (C-5)
165 Notice of Eighteenth Annual General Meeting Brgy. Bagumbayan, Libis,
Dasmarinas Technopark,
Governor’s Drive,
167 Notice of Dividend Entitlement and Payment Quezon City 1110, Philippines. Dasmarinas Cavite 4114, Philippines.
Tel : +632 706 2002, 656 2002 Tel : +632 584 4858, 584 4859
Form of Proxy Fax : +632 706 4966 Fax : +632 584 4649
Email : sales@weida.com.ph
CORPORATE PROFILE
Weida (M) Bhd. (“WEIDA”) is an established and diversified group of companies. It is
listed on the Main Market of Bursa Malaysia Securities Berhad, the Malaysian Stock
Exchange since 2001.
Founded in 1983, WEIDA today has about 1,000 professionals and support personnel
working from 11 offices and plants in Malaysia and Republic of The Philippines.
WEIDA pursues A Balanced and Sustainable Growth through its four (4)
business divisions:
1. Manufacturing
3. Works
4. Property development
DIRECTORS
Voon Jan Moi (MAICSA 7021367) Wisma Hock Peng, Ground Floor to 2nd Floor
Wang Tin Ngee (MIA 11670) 123, Green Heights, Jalan Lapangan Terbang
93250 Kuching, Sarawak
Tel : +6082 456 456
AUDITORS Fax : +6082 459 000
E-mail : weida@weida.com.my
KPMG PLT
Level 2, Lee Onn Building
Jalan Lapangan Terbang COUNTRY OF INCORPORATION AND DOMICILE
93250 Kuching, Sarawak
Tel : +6082 596 200 Malaysia
Fax : +6082 596 203
MANUFACTURING
100% Weida Resources Sdn. Bhd. (242580-H) 51% Vista Cape Sdn. Bhd. (933434-X)
100% Weida Marketing Sdn. Bhd. (424868-V) 100% Weida Medic Development Sdn. Bhd.
(543463-H)
100% Weida Manufacturing and Marketing Sdn. Bhd.
(543459-M)
49% Asaljuru Weida Sdn. Bhd.
100% Weida Green Industries Sdn. Bhd. (965800-M)
(543794-V)
ENVIRONMENTAL ENGINEERING
SERVICES & OTHERS PROPERTY DEVELOPMENT
YBhg. Dato’ Lee Choon Chin (Malaysian, aged 63), the Group
Executive Chairman, was appointed to the Board as Group
Managing Director on 25 October 2000.
Mr. Jee is one of the pioneers of the Group, being the first
factory engineer when WEIDA commenced manufacturing
operations in Kuching in 1988. Subsequently, he successfully
commissioned another two (2) factories in Kota Kinabalu
and Nilai, which marked the entry of WEIDA into Sabah
and Peninsular Malaysia, and later in 2009 another factory
in Manila, Republic of The Philippines, being WEIDA’s first
manufacturing plant abroad.
Mr. Lee Pet Loi (Malaysian, aged 61) was appointed to the
Board as an Independent Director of the Company on
16 December 2013. He is a member of Audit Committee,
Nominating Committee, Remuneration Committee and Risk
Management Committee.
Mr. Liew Jee Min @ Chong Jee Min (Malaysian, aged 58)
was appointed to the Board as an Independent Director on
3 July 2015. He is a member of Audit Committee and Risk
Management Committee.
Notes:
(a) The Directors have no family relationship with each other or the major shareholders of the Company,
except for YBhg. Dato’ Lee Choon Chin, whose spouse is one of the major shareholders of the
Company.
(b) None of the Directors have convicted any offences for the last five (5) years. There was no public
sanction or penalty imposed by the relevant regulatory bodies during the financial year under
review.
(c) None of the Directors have any conflict of interests with the Company.
(d) None of the Directors have any other directorship of public companies except for YBhg. Dato’
Jamelah Binti Jamaluddin, Mr. Yeoh Chin Hoe and Mr. Chong Jee Min.
(e) The number of board meetings attended by the Directors during the financial year ended 31 March
2017 is set out on page 39 of this Annual Report.
Tan Yak Khoon (Malaysian, aged 55, Male) graduated from the National University of Singapore with Bachelor
Degree of Arts in 1985. He joined WEIDA in 2003 as Senior Manager and was re-designated to General Manager
(Operations) in 2006. He was then promoted to Head of Manufacturing and Marketing (“M&M”) division in 2010
and was appointed as Chief Executive Officer & Commercial Director of M&M division, positions which he holds
until present.
Mr. Tan has more than 20 years of senior marketing leadership and business development experience. He is
responsible for identifying new commercial activities and driving business growth to ensure WEIDA M&M division
business sustainability.
NG WOOI CHOY
Finance Director
Executive Director (Weida Philippines Inc)
Ng Wooi Choy (Malaysian, aged 57, Male) joined WEIDA in 2005 as Regional Financial Controller for M&M Division
West Malaysia region and was promoted to Executive Director of Weida Marketing Sdn. Bhd. to head the M&M
Division West Malaysia region up to 2013 when he was promoted as Finance Director for the M&M Division for
whole Malaysia. In 2008, he pioneered the setting up of Weida Philippines Inc. and continued as the Country
Head, a position he is still holding presently.
He has in total more than 37 years of working experience in the field of finance, auditing, corporate restructuring
and senior positions in general management.
He is a Chartered Accountant registered with the Malaysian Institute of Accountants (MIA) after qualifying
as a member of Malaysian Institute of Certified Public Accountants (MICPA) through his articleship with
PricewaterhouseCoopers (“PWC”). He was with PWC for 16 years and has extensive experience in auditing,
investigations, financial consultancy, corporate restructuring and receiverships.
Mr. Ng is responsible for finance and other support functions including Human Resources, Administration and
Information Technology matters in the M&M Division of WEIDA. This covers overall finance management and
planning to support decision-making on operational and strategic issues of the division. As the Country Head
of Weida Philippines Inc., he is also responsible for the financial performance and growth of the investment for
enhancement of the shareholders’ value.
SONG CHYN
Technical Director
Song Chyn (Malaysian, aged 43, Male) graduated from University of New South Wales, Australia with Bachelor in
Mechanical Engineering (Hons) in 1996. Upon graduation, he joined WEIDA as a Mechanical Engineer. In 1998,
he was appointed as Assistant Factory Manager, and was promoted to Factory Manager of East Malaysia region
in 2001. In 2005, he was promoted to Assistant Regional Factory Manager. In this capacity, he was responsible
for the overall operations of all factories of Weida Integrated Industries Sdn. Bhd. (“WII”) in Peninsular Malaysia,
Sarawak and Sabah regions.
Besides manufacturing operations, Mr. Song acted as the head of the Quality Management Organization System
for WII. Subsequent promotion was entrusted to Mr. Song as Technical Director in 2013, a position he holds until
present. He oversees the manufacturing sector in terms of technical aspects for all regions and spearheading
development of new products.
PROPERTY DEVELOPMENT
VICTOR WEIDA LEE
Executive Director
Victor Lee (Malaysian, aged 36, Male) graduated from the University of Nottingham with a LLB (Hons) Law and
then obtained LL.M. from Monash University. He is a Barrister-at-Law from Lincoln’s Inn. He joined WEIDA in 2011
as the Executive Director of Weida Properties Sdn. Bhd.
Prior to joining WEIDA, he started his career in investment banking with ECM Libra Investment Bank Berhad, and
with subsequent stints in Khazanah Nasional Berhad and Newsmith Capital Partners Ltd., an asset management
company in Hong Kong. Mr. Lee subsequently joined a reputable property developer, Nadayu Properties
Berhad, where he was involved in the conceptualization, design and execution of property projects.
Mr. Lee is currently responsible for leading and managing the property development division of WEIDA.
Hilton Law (Malaysian, aged 47, Male) graduated from University of Bolton, United Kingdom with Bachelor of
Science in Computing. He is a Certified Competent Person in Environmental Professional in Sewage Treatment
Plant Operation (CePSTPO) and a Certified Envionmental Professional in scheduled Waste Management
(CePSWaM) recognised by the Department of Environmental Malaysia. He is also a Certified Business Operation
Professional (CBOP) by the International Academy of Business and Financial Management. He joined WEIDA in
2010 as Plant Manager and was promoted to Regional Plant Manager in 2013.
He has more than 28 years of working experience in the field of education, oil and gas industry, manufacturing,
engineering and general management.
Prior to joining WEIDA, he spent three (3) years in an oil and gas company as an Operation Manager, collaborating
closely with the Ministry of Domestic Trade, Co-operatives and Consumerism.
Mr. Law is in charge of the overseeing the operations and management of all three (3) septic sludge treatment
plants, namely Matang Septic Sludge Treatment Plant, Sibu Septic Sludge Treatment Plant and Miri Sludge
Treatment Plant.
WORKS
KU SIEW FUNG @ KU SIEU FUNG
General Manager (Operations & Finance, Tower Division)
Ku Siew Fung (Malaysian, aged 51, Female) joined WEIDA in February 2006 as Regional Financial Controller and
was re-designated to her current position as General Manager – Operations and Finance on September 2015.
She is a member of Malaysian Institute of Accountants (MIA), a Fellow Member of Association of Chartered
Certified Accountants (ACCA), a member of Chartered Tax Institute of Malaysia (CTIM) and a Certified Financial
Planner® by Financial Planning Association of Malaysia (FPAM).
She has more than 25 years of working experience, primarily in business operations, project management,
finance, auditing and human resource management.
WORKS (CONTINUED)
KU SIEW FUNG @ KU SIEU FUNG (continued)
General Manager (Operations & Finance, Tower Division)
Prior to joining WEIDA, she worked with a public listed company as General Manager for 12 years and was
responsible to oversee the overall business operations for East Malaysia region. In earlier of her career, Ms. Ku
worked in two (2) of the Big Four accounting firms for a total of 5 years, gaining extensive experience in auditing,
accounting, corporate restructuring, listing exercise and taxation.
Ms. Ku is responsible for identifying new business ventures, development and expansion of the division, project
management and implementation, finance and administrative.
George Sim (Malaysian, aged 59, Male) graduated with a Bachelor of Science in Civil Engineering Majoring in
Highway and Traffic Engineering Portsmouth Polytechnic, England in 1982. He further pursued his education in
1983 and obtained Master of Science in Transportation Studies Cranfield Institute of Technology, England. He
joined WEIDA in 2017 as Project Director.
He has more than 30 years of working experience in the field of construction and projects bidding. Prior to joining
WEIDA, he was attached as head of project, head of operations, project manager and resident engineer for
various construction companies in Sabah and Sarawak.
For the past 30 years’ working periods, he was responsible for the overall planning, strategically oversees,
implementing and monitoring the projects of the companies he worked with.
Mr. Sim is responsible for overall operational and management of major projects assigned to him, oversees all
consultants and contractors.
Robin Loi (Malaysian, aged 53, Male) graduated from Tunku Abdul Rahman College with Certificate in
Technology (Quantity Surveying) in 1985. He joined WEIDA in 2009 as Quantity Surveyor. He was re-designated
to his current position as the General Manager in 2014.
He has more than 30 years of experience in overall scope of project implementation, development,
management, leadership and completion of various projects such as supermarket building, residential housing
projects, national mosque, land reclamation projects, infrastructure projects, bridges, extension of airport and
environmental projects.
In Weida, he had successfully completed the various projects namely Puncak Borneo Pipeline project, Lubok
Antu Treatment Plant project, Tropical Peat Research Lab project, LFA Biogas project and Condominium Urbana
project in Selangor.
Mr. Loi is currently responsible for handling major projects costings and projects implementation of WEIDA.
WORKS (CONTINUED)
JASON NG CHAN HEAN
Senior Manager (Operations & Maintenance)
Jason Ng (Malaysian, aged 53, Male) graduated from University of Berkeley, California, USA with Bachelor in
Science in Chemical Engineer and Certificate of Master specializing in wastewater treatment technology from
University of Melbourne, Australia. He joined WEIDA in 2010 as Technical Manager and was promoted as Senior
Manager in 2013.
He has more than 20 years of working experience in various field of wastewater treatment covering of unit
processes design to Operation & Maintenance (“O&M”) of various treatment plants. In Weida, he had successfully
carried out commissioned of various projects in Syria and biogas plant in Sarawak.
Prior to joining WEIDA, he was attached with Indah Water Konsortium (“IWK”) Sdn. Bhd. as Senior Treatment
Manager and responsible for managing five (5) local authorities in Selangor.
Mr. Ng is currently responsible for O&M of the upcoming Sarawak General Hospital project with emphasis on
hospital services. He is also responsible for overseeing O&M of Lipp Engineering Biogas plants. He was appointed
as director in 2016 for Sar-Alam Indah Sdn. Bhd. and Lipp Biogas (Malaysia) Sdn. Bhd.
Wang Tin Ngee (Malaysian, aged 51, Male) joined WEIDA in 1997 as Finance Manager and was promoted to
Regional Financial Controller and later, to his current position as the Group Financial Controller in 2016.
He has more than 25 years of working experience in the field of finance, auditing, corporate restructuring and
general management.
Prior to joining WEIDA, he spent seven (7) years in audit and finance management in professional firms such as
John Burnett McMahon & Co (UK), Lawrence & Co (UK) and PricewaterhouseCoopers, Malaysia.
Mr. Wang is responsible for finance matters in WEIDA which covers overall finance management and planning
to support decision-making on operational and strategic issues of the Group.
Tan Mui Ping (Malaysian, aged 41, Female) joined WEIDA in 2012 as Senior Manager in Corporate Development
and was promoted to General Manager in Group Managing Director’s Office in 2014.
She is a member of Malaysian Institute of Accountants (MIA) and a Fellow Member of Association of Chartered
Certified Accountants (ACCA).
She has nearly twenty (20) years of working experience and holding senior finance roles since 2003. Her areas
of expertise covering group reporting, group finance and tax matters, corporate finance, investment feasibility
study and business development partnering.
Prior to joining Weida, she spent three (3) years in audit with a reputable accounting firm and 12 years in group
reporting, group finance and tax matters, and corporate finance with few public listed companies.
In WEIDA, Ms. Tan supports the Group Executive Chairman and work closely with other team members and
strategic partners on Group Executive Chairman related tasks and projects.
Justina Tang (Malaysian, aged 46, Female) joined WEIDA in 2002 as Internal Audit Manager and was re-
designated to Treasury Manager in 2006. She was promoted to her current position as the General Manager for
Group Finance in 2014.
She is a member of the Malaysian Association of Certified Public Accountants (MACPA) and also a member of
Malaysian Institute of Accountants (MIA).
She has more than 20 years of working experience in the field of finance, auditing, treasury, corporate restructuring
and general management.
Prior to joining WEIDA, she was with PricewaterhouseCoopers for six (6) years and has extensive experience in
auditing, business advisory, due diligence audit and corporate restructuring.
Ms. Tang is responsible for treasury and finance functions in WEIDA which she oversees the Group’s cash flows
planning, banking and financing matters. She also assumes the leadership role in various projects implemented
by the Group.
Notes:
(a) The Key Senior Management does not hold any directorships in WEIDA and other listed issuers and has no
family relationship with the directors and major shareholders of WEIDA, except for Mr. Victor Lee who is the
son of YBhg. Dato’ Lee Choon Chin, the Group Executive Chairman and major shareholder of WEIDA.
(b) None of the Key Senior Management has any conflict of interests with the Company.
(c) None of the Key Senior Management has previous convictions for any offences within the past five (5) years
nor any public sanction or penalty imposed by the relevant regulatory bodies during the financial year
under review.
FYE 31 March 2017 was the sixteenth (16th) year of Weida (M) Bhd. (“WEIDA”). as a public listed company. We
were listed in February 2001.
The year 2016 has been a tough year for most businesses in Malaysia as impacted by pressures in the
macroeconomic environment following the steep fall of crude oil price, depreciation of Ringgit Malaysia
(“RM”), headwinds such as falling revenue from a weaker commodities market and concerns over global
political uncertainty. The Group was also affected by these impacts. However, the Group, has certain resilience
to the effects arising from the economic slowdown and glad to report another year of respectable financial
achievements, recorded a revenue of RM301.4 million and profit before tax of RM34.3 million for FYE 31 March
2017.
The Group’s financial position also remains very healthy as at 31 March 2017, with total equity attributable
to owners of the Company of RM414.9 million, and cash and bank balances of RM119.0 million. Due to the
Group’s relatively low borrowings, it is currently in a net cash position and with net assets per ordinary share of
RM3.27 as at 31 March 2017.
On this note, we are pleased to present to you some key financial statistics for FYE 31 March 2017, as follows:
DIVIDENDS
WEIDA is committed to deliver shareholder value through a balanced approach in the distribution of dividends,
taking into account of the opportunities to reinvest profits to enhance earnings growth and the need to pay
dividends to shareholders.
In view of the positive performance of the Group, the Board of Directors (“Board”) has recommended a first
and final single-tier exempt dividend of 3.00 sen per ordinary share for FYE 31 March 2017, representing a 21.0%
distribution of the Group’s net earnings per share of 14.29 sen, and translating into a dividend yield of 1.6%
(based on the closing share price of RM1.87 on 31 March 2017). The Board believes that this is an appropriate
distribution ratio, given the needs to fund the continuing expansion of the Group.
OPERATIONS REVIEW
The growth in domestic demand is the main source of gross domestic product (“GDP”) growth and is expected
to marginally improve to 4.5% for this year and rebound slightly to 4.9% in 2018. Growth in domestic demand for
this year is supported by robust growth in private expenditures. Private consumption is projected to grow at 5.8%,
a bit slower than last year’s growth of 6.1% as consumers are more cautious on the back of rising household
debts and prices. An upward pressure on prices poses a setback to consumption growth. The massive negative
impact on raw material price resulting from a weakening RM is partially offset by the lower crude oil price.
Despite the challenges and hard sailing as compared to the previous financial year, we are pleased to report
that the Group’s profit margin before tax improved to 11.4% for FYE 31 March 2017 on the back of a revenue
of RM301.4 million, compared to 11.1% for the previous financial year with a corresponding revenue of RM384.3
million, in spite of the global economic slowdown.
In term of human intellectual, the Group will continue providing training and attractive remunerations and
benefits for key personnel to ensure talents and expertise are maintained within the Group.
The details of the operations and financial reviews for each business segment are deliberated under
management discussion and analysis (“MD & A”) section in the ensuing pages.
PROSPECTS
Notwithstanding the challenging backdrop globally and domestically, the Malaysian Government (“the
Government”) estimates a GDP growth of 4.5% in 2017, driven by the implementation of the Government
infrastructure development projects under the Eleventh Malaysian Plan (“11th MP”) and sustainability from the
private sector spending.
The prospects and business opportunities for WEIDA arising from the various development plans had been
highlighted and discussed in some detail in this Statement in the past five (5) years’ Annual Reports, and shall
remain valid and be applicable for the foreseeable future.
ACKNOWLEDGEMENTS
On behalf of the Board, we would like to place on record our appreciation to our customers and shareholders
for their support, without which our Group would not have been strong and successful.
We would also like to thank our associates, financiers, advisors, suppliers and sub-contractors for their continuing
confidence and support to the Group.
Finally, the Board and I wish to thank the management and all employees of the Group for their unwavering
commitment, contribution and hard work.
19 June 2017
Principal Activities
This business segment is primarily involved in the manufacture and sale of high density polythylene engineering
(“HDPE”) products and trading of other specialized and technical engineering products.
Manufacturing segment is principally involved in the manufacture and sale of the following products:
• Water Storage
• Water Distribution
• Sewerage Solutions
• Traffic Equipment
• Agricultural Implements
• Marine Products
• Chemical Storage
• Custom Moulded Products
• Other Environment Products
WEIDA offers more than 200 types of products by six (6) manufacturing plants across Malaysia and Republic of
The Philippines using proprietary technology spearheaded by our research and development unit and a team
of engineers from different fields.
WEIDA is the largest septic tank manufacturer in Malaysia, providing septic tank system designed specifically for
both domestic and commercial applications.
WEIDA is the leading manufacturer for underground drainage pipe systems for subsoil, storm drains and culverts
applications.
Since pioneering the industry of polyethylene–based building materials manufacturing for more than a quarter
of a century ago, WEIDA has remained as the undisputed market leader in Malaysia, with a dominant position
in East Malaysia. Growing steadily as a manufacturer for water and wastewater engineering, WEIDA is a leading
provider of modern environmental engineering products and solutions in the areas of water and wastewater
infrastructures, products and services for both urban and rural applications.
The Group has a full presence nationwide with five (5) manufacturing plants strategically located in Nilai, Kuching,
Kota Kinabalu, Miri and Tawau; and one (1) in Manila. The barriers of entry into this industry are high: substantial
capital investment, intensive research and development programmes, and specialist technological expertise
developed in-house over the years. This industry is generally capital intensive for big scale manufacturers. The
main industry players have generally remained unchanged during the financial year under review.
Despite the challenging economic situation, WEIDA’s manufacturing segment continues to deliver positive
results. This was achieved through supply of our products to sizable projects implemented by the Government
which includes provision of filtered water to the rural population, provision of affordable homes, setting up of
universities and educational institutions, provision of better roads, jetties and landscaped recreational parks,
agriculture and aquaculture projects.
The manufacturing segment achieved total revenue of RM161.7 million for FYE 31 March 2017 as compared to
RM191.8 million for the previous financial year. The decrease in revenue is due to lower demand in polyethylene
engineering products but with more favorable mix of products and customers, a comparable profit margin
was achieved with profit before tax recorded at RM20.6 million as compared to RM24.7 million in the previous
financial year.
Prospect
The building and construction sector has visibly slowed down in view of a general slower economy which has
seen tightening of bank lending, and thereby lower offtake of properties. The demand for WEIDA’s water storage
tanks and septic tanks as well as pipes are somewhat impacted by the slowing down of construction activities
especially in the private sector. However, with the Government’s focus on providing affordable homes and the
Prospect (continued)
continued construction of housing units, these projects will provide the continued demand for our products. The
Government’s focus in other sectors such as road construction and the providing of basic amenities such as
water and electricity has also created a demand for our relevant products.
The Group’s manufacturing segment will continue to serve both the government and private sector.
In the government sector, as announced in the Budget 2017 and 11th MP, in line with the strategies to
strengthen Malaysia’s economy, growth in the construction sector is expected and continues to be propelled
by the infrastructure projects, urban housing and affordable housing segments. The Government initiatives in
infrastructure such as the new highways of West Malaysia namely West Coast Expressway, Lebuhraya Pantai
Timur and the Klang Valley Mass Rapid Transit Line 2 provide good opportunities for our products. Also, as
Sarawak and Sabah move into the second year of the 11th MP this year, one of the mega projects, for instance,
the construction of the Pan Borneo Highway is expected to move into full swing. All these projects should augur
well for the Group’s manufacturing segment.
Besides, the China’s current aggressive investments in ports and rail links in Malaysia under its mega belt-road
regional economic expansion projects in Malaysia once completed will alter trade routes in the region. The
double-track five-year East Coast Rail Line project due to begin this year will connect ports on the east and
west coasts of Peninsular Malaysia and will alter current regional trade routes, which ply between the busy
Straits of Malacca and the South China Sea via Singapore. This project will bring vast economic benefits and
opportunities (trade and logistics services will be further enhanced) to Malaysia. However, there are some
effects to be considered arising from China’s capital control to curb outflow of funds in order to stabilize yuan’s
rate and also recently, international ratings agency Moody’s downgraded China’s credit rating for the first time
in nearly 30 years over its growing debt.
The Group’s manufacturing segment is expected to benefit particularly in products for public utilities in relation
to the above infrastructures and projects, such as water tanks, septic tanks, water pipelines, electrical power
conduits, telecom conduits and towers and drainage culverts. The Group’s polyethylene culverts are increasingly
being accepted by both the government sector in road construction projects, and the private sector especially
oil palm plantations for drainage infrastructure.
Strategy
The volatility of RM has resulted in the higher prices for our imported raw material. However, we have kept the
necessary buffer stocks and this has mitigated the effects of higher raw material prices. At the same time, we will
have to revise our prices in order to pass on some of the increased costs to end users.
The challenges posed by a slow economy will see higher credit risks in the conduct of business. We will continue
to adopt prudence approach in credit evaluation and assessment.
With a shrinking market, the competition to get the market share will certainly be heightened. WEIDA’s well
positioned plants will be a leverage for lower costs of transportation and greater accessibility to the customers.
In addition, we offer a wider range of complementary products that would serve customers’ demands better
and more conveniently. We continue to upgrade and improve the quality of our products and services, such as
including innovative features onto our products.
Principal Activities
This business segment is primarily involved in construction of telecommunication towers and share of rental
proceeds of telecommunication towers as well as design, construction, and installation of water supply, storage
infrastructure and treatment systems, wastewater treatment specialized systems, hydro systems and other
infrastructure.
Works segment is principally involved in construction work as a “one-stop engineering solutions provider” for
engineering-driven turnkey works in the water supply, sewage and aquaculture sectors. These turnkey projects
utilise WEIDA products, providing maximum synergy with the manufacturing arm. Our environmentally friendly
engineering solutions are designed to help our clients achieve their objectives in a sustainable manner. The
Group’s turnkey and consultancy services include the following:
• Feasibility Studies
• Design
• Manufacturing
• Construction
• Installation
• Project Management
• Commissioning
Also, under this segment, WEIDA offers a full spectrum of telecommunication networking services from initial
construction and installation to long term maintenance of these network facilities.
WEIDA has completed 460 telecommunication towers in Sabah and Sarawak. We have rented 244
telecommunication towers to service providers on a long term basis. We built various types of telecommunication
infrastructures including 4 legged tower, 3 legged tower, monopole tree, monopole, Eddy Covariance tower
rapole and lampole.
Given the nature of the works segment, its revenue and profit contribution typically fluctuates according to the
ebb and flow of projects.
In the current financial year, this segment recorded a lower revenue of RM64.9 million (FYE 31 March 2016:
RM84.3 million) with slight decrease in segment profit of RM9.5 million (FYE 31 March 2016: RM9.8 million), mainly
due to less construction work done but the impact was mitigated by higher profit margin achieved.
Less construction work done was mainly because of the Malaysian Communications and Multimedia
Commission’s (“MCMC”) Universal Service Provision (“USP”) phase 1 project is coming to a tail-end in FYE 2017.
Also lower revenue derived from share of rental proceeds of telecommunication towers mainly due to reduction
in rental rates as per the agreement with the service providers.
Prospect
There is a growing demand for telecommunication infrastructures in line with Malaysia formally launched the
Digital Free Trade Zone (“DFTZ”) initiative at the Global Transformation Forum on 22 March 2017 as the Government
targets the digital economy to contribute about 20 percent to the GDP by 2020. More telecommunication towers
are needed to be built, more fibre optic cables to be laid as well as other infrastructural support to achieve
this target. Reliable network facility infrastructure is a pre-requisite for the success of the digital economy and
seamless connectivity. We continue to work together with service providers and the Ministry of Communications
and Multimedia in developing telecommunication infrastructure landscape in Malaysia.
Prospect (continued)
The State Government of Sabah on 25 January 2017 freezes all construction of telecommunication towers in
Sabah until a new policy is introduced. To date, the freeze is still ongoing and this will affect the tower construction
business in this financial year.
On 28 April 2017, the Group has secured a 20 years government concession worth RM351.0 million to build new
buildings and facilities for the Sarawak General Hospital (“SGH”) under a build-lease-maintain-transfer model.
The concession is expected to contribute positively to the earnings of the Group in future financial years.
The Group is also expecting to secure some water supply projects implemented by the Government for such
development.
Strategy
In view of the telecommunication infrastructures, in the forthcoming year, we will continue to secure projects
from the Ministry of Communications and Multimedia and to work with service providers in constructing rapole
and lampole in urban areas.
In relation to SGH project, the Group will plan and implement the construction work accordingly to meet the
timeline and ensure compliance with rules and regulations that governing the project.
Principal Activities
This business segment is primarily involved in the sewerage services, treatment and disposal of sludge services as
well as quarry operation.
Sar-Alam Indah Sdn. Bhd. (“SAI”) manages, operates and maintains three Septic Sludge Treatment Plants (“SSTP”)
in Sarawak, more specifically in Kuching, Sibu and Miri. We have secured 25 years concession for Matang SSTP in
Kuching, providing sludge treatment and disposal for Kuching city councils and Padawan Municipal Council (both
commencing in year 2002) and Kota Samarahan Municipal Council (commencing in year 2011). In year 2011, we
secured 20 years concession for Sibu SSTP and Miri SSTP, providing sludge collection, treatment and disposal for Sibu
Municipal Council and Miri City Council. The quarry operation is managed under Blast Power Sdn. Bhd.
This segment recorded higher revenue of RM24.6 million for FYE 31 March 2017 as compared to last financial year
of RM21.3 million due to higher extraction and processing of quarry stone. There is a slight increase in segment
profit from RM3.7 million in the last financial year to RM3.8 million in the current financial year mainly attributable
to lower profit margin achieved, though higher revenue is recorded.
Prospect
The growing emphasis on environmental sustainability also bodes well for the Group. Over the years, the
Group has significantly grown and enhanced its human and engineering capital, via active involvement and
collaboration with a network of established international organisations. The Group has been successfully playing,
and will continue to play, the role as a provider of environmental engineering solutions; such as in the field of
water and wastewater treatment, septic sludge treatment and renewable energy.
Prospect (continued)
We are recognized by various local authorities and government agencies as the specialists in wastewater
treatment as we provide expertise and sound solutions to ensure that the quality of our final effluent discharged
from our plants are in compliance with the required regulations and standards.
Strategy
The management ensures strict compliance to environmental requirement and regulations from time to time via
continuous updates and training in relation to the relevant legislations and regulations. It is important to maintain
good rapport and relationship with councils and government agencies by achieving quality work, product and
quality compliance as well as national recognition. In order to optimise consumable usage for cost efficiency,
the Group will continue on studies and also research into other methods of reusing sludge.
SAI is constantly pursuing more operation and maintenance contracts from other/new treatment plants.
Principal Activities
This business segment is primarily involved in the development and construction of residential properties.
The property development segment is principally involved in property development, namely of niche residential
properties, located in prime and mature neighbourhoods within the Klang Valley.
To date, we have just completed our inaugural development, which is Urbana Residences (356 units of serviced
apartments) at Ara Damansara in Petaling Jaya (gross development value (“GDV”) of RM220.0 million). This
development was completed and handed over to proud owners in October 2016. To date, only limited bumiputra
units remain in hand. In addition, the Group has in the planning stages, a further 2,700 units of condominiums
located in Mont Kiara and Cheras in Kuala Lumpur.
The joint venture with Pacific Mutiara Sdn. Bhd. to jointly develop two (2) parcels of land in Cheras is currently at
the planning stage of development. Initial estimate of the GDV is around RM1.2 billion.
Planning and design works are completed on a development project called Ardena located in Mont’ Kiara
with an estimated GDV of RM360.0 million. Final refinement to suit the current trend and demand is in progress.
This business segment recorded revenue of RM50.1 million for current financial year as compared to RM86.8
million in FYE 31 March 2016 which is mainly attributable to the completion of Urbana Residences in September
2016 with segment profit of RM3.0 million as compared to RM6.8 million in FYE 31 March 2016.
Profit contribution from Urbana Residences was partly offset by preparation expenses for the Group’s proposed
future developments located at Mont’ Kiara and Cheras.
Prospect
In the immediate term, the property market remains soft, following the introduction of cooling measures by Bank
Negara Malaysia in 2014. Furthermore, this is coinciding with a weakening in consumer sentiment brought on by
increased cost of living and uncertainties in the local and global economies.
According to the Ministry of Finance’s Property Report 2016, total volume and value of property transactions
in Malaysia declined for the second consecutive year. Between 2015 and 2016, volume dropped by 11.5% to
320,425 units and value dropped 3% to RM145.41 billion. In addition to this, developers in general, have slowed
down new launches. Property overhang, measured as the number of unsold properties nationally has also seen
a year on year increase of 43.8% to 14,792 units. In the absence of any catalyst, sentiment for the sector is
expected to remain soft going in to 2018.
Strategy
In order to navigate these challenging times, the Group has consciously employed the strategy of focusing on
niche residential developments, in mature locations in the Klang Valley where demand and spending power
remains resilient. The residential sub-sector accounts for 63.4% of the overall annual volume and 45.1% of the
overall annual value transacted. Moreover, the country’s relatively young population, high household formation
and growing urbanisation augurs well in the medium to long term for the industry.
Moving forward, the Group will exercise great discipline in any launch or land bank acquisition. The management
is continuously reviewing our planned launches. This entails revisiting and careful studies on our product design,
pricing and even phasing strategies to ensure success for the benefit of the shareholders.
This Annual Report contains forward-looking statements that are based on management’s estimates, assumptions
and projections at the time of publication. These statements reflect our current views and expectations with
respect to future events and are subject to risks and uncertainties and hence are not guarantees of future
performance. Some factors include, but are not limited to, changes in general economic and business
conditions, exchange rates and competitive activities that could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statement.
OVERVIEW
WEIDA is the leading manufacturer of HDPE products in Malaysia. Being a one-stop solutions provider in the
water, wastewater and environmental sectors, we provide end-to-end engineering infrastructure products
to cater to the growing demands for premium HDPE products.
WEIDA has manufacturing facilities that span over 120,000 square metres. Our products are designed and
manufactured in compliance with Malaysia and international standards, satisfying the relevant technical
specifications and performance criteria.
Apart from our products being certified by SIRIM and IKRAM, our manufacturing facilities are also ISO 9001
certified. These are assurances that our products are of the highest standards and meet the stringent
requirements of the markets we serve.
Having invested intensively in research and development activities, we have developed proprietary
technologies in the manufacturing of large tanks and pipes, mould design and fabrications, material
formulation and compounding as well as HDPE welding and fabrications. To stay connected with the
technological development of the manufacturing industry, WEIDA established and maintains strong
partnership with international manufacturing technology affiliates.
MANUFACTURING (CONTINUED)
MANUFACTURING (CONTINUED)
MANUFACTURING (CONTINUED)
Focused on countering pollution and protecting Ensuring efficient and safe transfer of wastewater
our local water resources, WEIDA has over 20 years from residential and commercial establishments to a
of experience in developing and providing a full wastewater treatment plant is a heavy responsibility
spectrum of expertise in wastewater treatment that WEIDA takes on with pride. WEIDA® Double Wall
solutions through planning, engineering construction, Corrugated HDPE pipes are ideal for underground or
operation and maintenance, to process optimisation above ground gravity and low pressure applications
of various types of wastewater treatment systems, in the civil works and waste management sectors as
including conventional activated sludge (“CAS”) they are highly resistant to the chemical corrosions
process, extended aeration (“EA”) process, from soils and sewage effluents with extreme pH
biological nutrient removal (“BNR”) process and the levels.
membrane bioreactor (“MBR”) process.
WEIDA as a diversified solutions provider has taken up
WEIDA is the largest septic tank manufacturer in various projects that introduce modern technology
Malaysia, providing septic tank systems designed to the rural communities of Malaysia, notably in
specifically for both domestic and commercial Sabah and Sarawak. We offer the basic necessities
applications. The ECOSEPT® septic tanks, WEIDA’s to these communities such as clean water source,
premium grade HDPE single-piece moulded tanks electricity as well as improved sanitation system.
are suitable for domestic sewerage application as
it is designed to suit local sewage flows and loading
parameters. WEIDA is the market leader in the supply
of prefabricated modular sewage treatment plants
(“STP”), suitable for decentralised treatment systems
by employing the EA process. ECOPASS® Small
Sewage Treatment Systems are fast to install, durable
and reliable, making them suitable for applications
into housing estates, schools and government
buildings.
MANUFACTURING (CONTINUED)
Rural Sanitation
MANUFACTURING (CONTINUED)
OTHERS
SARAPEG
AQUACULTURE
WEIDA manufactures floating cage systems and hatchery tanks to serve the aquaculture industry. ECOCAGE
and WEIDACAGE systems, made up of a network of interlocking, modular polyethylene floating modules, are
designed especially for freshwater aquaculture in lakes and rivers. A variety of AQUALIFE® polyethylene tanks
caters for land-based fish farming, where they are used as breeding, hatchery or filter tanks.
With a track record of over 20 years in the waste water sector, WEIDA offers a full spectrum of experience and
expertise in centralized and decentralized wastewater treatment solutions optimised in process, design and
treatment capabilities.
Weida offers end-to-end solutions in wastewater management covers the whole range of services which include
management, operation and maintenance of treatment plants both locally and overseas.
We are recognized by various local authorities and government agencies as the specialists in wastewater treatment
as we provide expertise and sound solutions to ensure that the quality of our final effluent discharged from our
plants are in compliance with the required regulations and standards.
In Malaysia, we have secured long term contracts for operating and managing the septic sludge treatment plants
in Kuching, Sibu and Miri. We have a dedicated team of professionals make up of former senior and experienced
engineers in operating and maintaining large scale central sewage treatment plants for Indah Water Konsortium.
Also, Weida had received various awards on recognition as the service provider for sludge treatment plants.
CONSTRUCTION WORKS
The Group has over the years, built up its engineering capabilities to undertake and deliver quality construction
works timely within the completion period. Coupled with our strong financial resources, it provides us the flexibility
to undertake infrastructure and building projects based on private funding initiative, build-and-lease or deferred
payment basis.
The completed and on-going construction works undertaken by the Group include telecommunication towers,
water and sewerage treatment plants, distribution and drainage pipelines, biogas plants, building works, green
house for agricultural and others.
PROPERTY DEVELOPMENT
OVERVIEW
As a boutique property developer, Weida Properties Sdn Bhd aims to build for the future – creating niche lifestyle-
centric developments that cater to the market’s evolving needs. With our strong emphasis on sustainable living,
we take pride in our commitment to deliver quality lifestyle homes that will last.
At Weida, we don’t just create homes – our lifestyle-focused homes enable families to live how they like and
connect with each other, all within a flexible space that promotes quality time and bonding with loved ones.
Following the guiding principle of putting the customer at the heart of everything we do, our priority is to provide
the best service and competitive products in the market.
Our strategy involves focusing on prime, mature locations with a large population. We identify market gaps and
offer products that fulfil these needs, building a brand DNA that’s synonymous with lasting quality, innovation,
and value.
We will continue to strengthen our presence in the property sector through strategic acquisitions or joint ventures
to increase our landbank in the Klang Valley and beyond.
OPERATING RESULTS
KEY FINANCIAL POSITION DATA
FINANCIAL RATIOS
Basic earnings per ordinary share sen 121.25 17.45 13.73 20.51 14.29
Gross dividend per ordinary share sen 5.50 3.00 3.00 3.00 3.00
Net assets per ordinary share RM 2.62 2.76 2.99 3.16 3.27
Gearing ratio times 0.60 0.44 0.29 0.22 0.17
^
Certain comparative figures have been restated following the prior year adjustments relating to the
reversion from MFRSs to FRSs and adoption of FRS 10, Consolidated Financial Statements during the financial
year ended 31 March 2014.
Denote
Besides maximising shareholders’ value, WEIDA believes that we are also responsible for our employees,
environment and community. One (1) of our main principles as a public listed company is to create long term
value. We achieve this by providing our clients with value-added products and services, promoting a corporate
culture that adheres to high ethical standards, and by generating superior and sustainable returns for our
shareholders. We firmly believe that sustainable growth and investment for any business is also dependent on
what it does above and beyond the requirements of laws and regulations. This is why we are committed to
creating a working environment based on the values of meritocracy, equal opportunity and diversity. As part of
our business, we contribute to the protection of the environment. We also adhere to high social standards and
contribute to the communities we are part of. All our activities are underpinned by our governance structure,
which complies with the Malaysian Code on Corporate Governance 2017.
Protecting the natural environment, sustainable development and living in harmony with the environment is
at the heart of WEIDA’s core business in the water and sewerage sectors. As a one-stop centre for water and
sewerage solutions, our people strive to protect the environment every day. For instance, we have designed
and built many water and sewage treatment plants, thousands of rain water harvesting and gravity feed water
supply systems for rural communities, and countless rural sanitation systems. The communities we serve are far
and wide, in Malaysia and Republic of The Philippines.
The engineering products that we manufacture for water and sewerage applications are made from polyethylene
(“PE”). PE products are corrosion resistant, relatively lightweight, chemically inert and seamless in construction.
These superior characteristics make them ideal substitutes for similar products made from other materials such
as fibreglass, metals and concrete. The U.S. Food and Drugs Authority Administration (“FDA”), an authority in the
United States that certifies the types of materials that are suitable to be in contact with water and food for the
purpose of safeguarding customers/public health, has approved polyethylene as safe for use as a medium of
storage for drinking water and food. Many countries legislate against the use of alternative materials such as
fibreglass, asbestos concrete, and in certain cases, polyvinyl chloride (“PVC”), for pipelines and water storage
as they are hazardous to health and/or pollute the environment.
Our commitment to serving our community goes beyond providing environmentally friendly products. We go
one step further by working hand in hand with local city councils and provide services and infrastructure that
benefit the people we serve. We have taken the initiative to develop projects that will not only enhance the
environment, but serve as a platform where WEIDA can make positive contributions to the daily lives of the
community.
At WEIDA, our people is our main asset. The Group endeavours to attract, develop and retain the best talents
the market has to offer by providing a continuous learning and conducive working environment. We believe in
recognising, advancing and rewarding top talents in an open and mutually supportive work environment which
reflects our core corporate values. We pride ourselves as an equal opportunity employer. These core values
shape the root of a sturdy corporate culture that fosters teamwork and unites our people for sustainable growth.
We continuously invest in our people to send them for external professional trainings, seminars and conferences,
and also in house training to provide them with relevant skills to thrive in a constantly changing business
environment. In addition, various teambuilding activities are organised in order to foster awareness of time
management and team spirit as well as to reinforce commitment to our team’s shared goals and objectives.
Safety and health of our employees is our priority and we are continually looking into ways to improve our
performance in these areas. WEIDA has implemented its Safety and Health Policy in Malaysia and Republic
of The Philippines, which complies with the Occupational Safety and Health Act (“OSHA”) of the respective
countries.
COMMUNITY
The future of WEIDA is naturally linked to the standard of living of the communities it serves. Through a wide array
of initiatives supported by WEIDA, namely community-development programmes, philanthropy, volunteerism
and promotion of health, education, cultural, arts and sports, we are making a difference in improving the
quality of life in the community.
EVENTS
For the financial year ended 31 March 2017, WEIDA has initiated and/or participated in the following community-
based events:
WEIDA supported University College Sabah Foundation (UCSF) in its endeavour to help students from the rural
areas to develop marketable skills and to achieve sustainability. A total of 360 paintings valued at RM63,000.00
were given to Urbana Residences owners as our small way of giving back to the community, to help improve
lives and to encourage budding artist to persist to earn their living in the arts.
WEIDA sponsored the Carnival where non-governmental organization, activists, businesses, creative talents and
government bodies can get together to create an annual marketing and promotion platform.
Fund Raising for two (2) Fully Equipped Ambulances (July 2016)
WEIDA donated funds to support five (5) dialysis centres and donation of ambulances, boats, first responder
motorcycles and other equipment necessary for ambulance services.
Charity Gala Dinner 2016 by the Women Division of Majlis Kebajikan Dan Sukan Anggota-Anggota Kerajaan
(“MAKSAK”) Sarawak (August 2016)
WEIDA contributed funds for the development of welfare activities of the Women Division of MAKSAK Sarawak.
ZJ Advisory Sdn. Bhd. Charity Fund 2016 – The Great Melaka Treasury Hunt (October 2016)
WEIDA donated funds to support the fund-raising event for the children by providing financial aid to an
orphanage in Puchong. Children are our future, with the contribution, we believe together we can do much
more for these children.
Fund Raising for St. Joseph Secondary School Extension in Papar (December 2016)
WEIDA contributed funds for extension of St. Joseph Secondary School in Papar, Sabah.
MPI Generali Run 2017 by MPI Generali Insurance Berhad (January 2017)
WEIDA supported the run by contributing registration fee for participated staff in promoting healthy lifestyle and
sustainable keep-fit activity.
Fund Raising Dinner for Sarawak Hearing and Aural Rehabilitation Society (“Sarawak Hear”) (April 2017)
WEIDA contributed funds to support Sarawak Hear, new Non-Governmental Organization and the only regional
society devoted to support hearing-impaired people and their families. The fund raised would be used for the
society’s upcoming events throughout the year.
The Board of Directors of Weida (M) Bhd. (“the Board”) is steadfast and committed in ensuring that the highest
standards of corporate governance are observed and applied throughout Weida (M) Bhd (“WEIDA” or “the
Company”) and its Group of Companies (“the Group”) through its support and application of the Malaysian
Code on Corporate Governance 2012 (“MCCG 2012”).
The Board believes that upholding good corporate governance is fundamental in discharging its fiduciary
responsibilities to protect and enhance shareholders’ value and the financial performance of the Group.
This Corporate Governance Statement (“Statement”) sets out how the Company has applied the eight (8)
Principles as outlined in the MCCG 2012 and observed the 26 Recommendations supporting the Principles in
respect of the financial year ended 31 March 2017. Where a specific Recommendation of the MCCG 2012
has not been observed during the financial year under review, the non-observation, including the explanation
thereof and, where appropriate, the alternative practice, if any, are mentioned in this Statement.
Principle 1 – Establish Clear Roles and Responsibilities of the Board and Management
The Board recognises the key role it plays in charting the strategic direction of the Company and has assumed
the following principal responsibilities in discharging its fiduciary and leadership functions:
(a) reviewing and adopting a strategic plan for the Company, which also addresses the sustainability of the
Group’s businesses;
(b) overseeing the conduct of the Group’s businesses and evaluating whether or not its businesses are being
properly managed;
(c) identifying principal business risks faced by the Group and ensuring the implementation of appropriate
internal controls and mitigating measures to address such risks;
(d) ensuring that all candidates appointed to senior management positions are of sufficient calibre, including
having in place a process to provide for the orderly succession of senior management personnel and
members of the Board;
(e) overseeing the development and implementation of a shareholder communications policy; and
(f) reviewing the adequacy and integrity of the Group’s risk management and internal control, and
management information systems.
To assist in the discharge of its stewardship role, the Board has established Board Committees, namely the Audit
Committee, Nominating Committee, Remuneration Committee and Risk Management Committee, to examine
specific issues within their respective terms of reference as approved by the Board and report to the Board with
their recommendations. The ultimate responsibility for decision making, however, lies with the Board.
The management is delegated with certain authority to enable them to effectively discharge their duties and
responsibilities, subject to the Company’s authority limits granted to the Management. Management under
the stewardship of the Group Executive Chairman will keep the Board informed of material issues that may
significantly affect the Group’s policies and performance.
To enhance accountability, the Board has established clear functions reserved for the Board and those
delegated to Management. There is a formal schedule of matters reserved for the Board for its deliberation
and decision to ensure the direction and control of the Company are in its hands. Key matters reserved
for the Board include, inter-alia, the approval of annual budgets, strategic plan, quarterly and annual
financial statements for announcement, investment and divestiture, as well as monitoring of the Group’s
financial and operating performance. Such delineation of roles is clearly set out in the Board Charter
(“the Charter”), which serves as a reference point for Board activities. The Charter provides guidance for
Directors and Management regarding the responsibilities of the Board, its Committees and Management,
the requirements of Directors in carrying out their stewardship role and in discharging their duties towards
the Company as well as boardroom activities. The Charter is available on the Company’s website at
www.weida.com.my in line with Recommendation 1.7 of the MCCG 2012. The Board reviews the Charter
annually.
Principle 1 – Establish Clear Roles and Responsibilities of the Board and Management (continued)
The Board has adopted and adhered to a Directors’ Code of Ethics which is in line with that established
by the Companies Commission of Malaysia. A summary of the Directors’ Code of Ethics is as set out in
Appendix A of the Charter.
To inculcate good ethical conduct, the Group has also established a Code of Conduct for employees,
encapsulated in the Company’s Employees Handbook, which has been communicated to all levels of
employees in the Group.
The Board has also formalised a Whistle-Blowing Policies and Procedures, with the aim to provide an
avenue for raising concerns related to possible breach of business conduct, non-compliance of laws and
regulatory requirements as well as other malpractices. This Whistle-Blowing Policies and Procedures has also
been disseminated to all levels of employees in the Group.
The Board is mindful of the importance of business sustainability and, in conducting the Group’s business, the
impact on the environmental, social and governance aspects is taken into consideration. The Group also
embraces sustainability in its operations and supply chain, through its own actions as well as in partnership
with its stakeholders, including suppliers, customers and other organisations.
The Company has adopted Group’s Business Sustainability Policy to operate its business in accordance with
environmental, social and economy responsibility and to achieve a sustainable long term balance between
meeting its business goals and preserving the environment. A copy of the Group’s Business Sustainability
Policy is available at the Company’s website at www.weida.com.my in line with Recommendation 1.4 of
the MCCG 2012. The Group’s activities to promote sustainability during the financial year under review are
also disclosed on page 32 of this Annual Report.
The Board has unrestricted access to all information of the Group, whether as a full Board or in their
individual capacity. Directors are supplied with relevant information and reports on financial, operational,
corporate, regulatory, business development and audit matters for decisions to be made on an informed
basis and effective discharge of the Board’s responsibilities.
Procedures have been established for timely dissemination of the Board and Board Committee papers
to all Directors at least seven (7) days prior to the Board and Board Committee meetings, to facilitate
decision making by the Board and to deal with matters arising from such meetings. During the meetings,
Management provides further detailed information and clarification on issues raised by Directors. Senior
Management of the Group and external advisers are invited to attend Board meetings to provide additional
insights and professional views, advice and explanations on specific items on the meeting agenda. Apart
from meetings, Directors are also provided with updates via emails and the Group Intranet on any new
developments on the Group’s business from time to time.
Besides direct access to Management, Directors may obtain independent professional advice at the
Company’s expense, if considered necessary. Directors have unrestricted access to the advice and services
of the Company Secretaries to enable them to discharge their duties effectively. The Board is regularly
updated and advised by the Company Secretaries who are qualified, experienced and competent
on statutory and regulatory requirements, and the resultant implications of any changes therein to the
Company and Directors in relation to their duties and responsibilities.
Principle 1 – Establish Clear Roles and Responsibilities of the Board and Management (continued)
The Company Secretaries are competent and suitably qualified as required pursuant to the Companies Act
2016. The Company Secretaries are members of Malaysian Institute of Accountants (MIA) and Malaysian
Association of Institute of Chartered Secretaries and Administrators (MAICSA). They are competent in
carrying out their work, and play supporting and advisory roles to the Board and its Committees. They
ensure adherence and compliance to Board policies and procedures as well as regulatory requirements.
They keep the Board updated on developments in respect of laws, regulation and corporate governance
at Board meetings, and from time to time via electronic means. They ensure that the meetings are
properly convened and proceedings of meetings are accurately and comprehensively minuted; and that
minutes and statutory records are properly kept and updated in compliance with the relevant laws and
requirements. They have attended various professional development programmes and fulfilled the CPE/
CPD hours as required by MIA and MAICSA.
During the financial year under review, the Board consisted of two (2) Executive Directors and four (4) Independent
Directors. At all times, during the financial year under review, the composition of the Board fulfills the requirements
as set out in the Main Market Listing Requirements (“Listing Requirements”) of Bursa Malaysia Securities Berhad
(“Bursa”), which stipulate that at least two (2) Directors or one-third (1/3) of the Board, whichever is higher, must
be independent. The Directors, with their diverse backgrounds and specialisations, collectively bring with them
a wide range of experience and expertise in areas such as engineering, entrepreneurship, finance, taxation,
accounting, audit, economics and legal. The profile of each Director is set out on pages 4 to 7 of this Annual
Report.
Paragraph 2.20A of Listing Requirements of Bursa mandates a listed issuer to ensure each of its directors, chief
executive and chief financial officer (“key officers”) has the character, experience, integrity, competence
and time to effectively discharge their respective roles.
Paragraph 15.08A of Listing Requirements of Bursa mandates a listed issuer to establish a NC, with written
terms of reference, and to provide a disclosure statement in its annual report on the activities of the NC in
the discharge of its duties for the financial year.
Principle 2 of MCCG 2012 further recommends that the Board should have transparent policies and
procedures for selection of Board members. MCCG 2012 also emphasises that the Board should comprise
members who bring value to Board deliberations. At the fore, establishing the NC responsible for identifying,
nominating and orientating new directors will assist the Board in ensuring Board composition, practices and
processes are well established, transparent and accountable.
Delegation of this responsibility to the NC helps to ensure that the Board comprises individuals with core
skills and robust business aptitude and allows the Board to instead spend time on strategic matters and its
oversight responsibilities.
The Board has developed Directors’ Selection, Recruitment, Assessment Policies and Procedures to put in
place guidelines and procedures premised on Principle 2 of MCCG 2012, setting out clearly the role played
by NC.
The NC will recommend candidates for all directorships to be filled for the consideration of the Board.
This involves identification and evaluation of candidates for directorships, interviewing or meeting up with
candidates by Board members, deliberation by the NC and recommendations by the NC to the Board.
New Directors will undergo a familiarisation programme, which includes visits to the WEIDA Group’s
businesses, and meetings with Senior Management, as appropriate, to facilitate the new Directors’
understanding of WEIDA Group. The Company Secretaries will ensure that all appointments of new Director
are properly carried out and all legal and regulatory obligations are met.
The Board, through the NC conducted an annual assessment of the performance of the Board, as a whole,
Board Committees and individual Directors, based on a peer-assessment approach. From the results of the
assessment, including the mix of skills and experience possessed by Directors, the Board considered and
approved the recommendations made by the NC on the re-election and re-appointment of Directors at
the Company’s forthcoming Annual General Meeting.
All assessments and evaluations carried out by the NC in the discharge of all its functions are properly
documented.
The Board has stipulated specific terms of reference for the NC, which cover, inter-alia, selecting, assessing
and recommending to the Board the candidature of Directors, appointment of Directors to Board
Committees and training programmes for the Board. The terms of reference require the NC to review
annually the required mix of skills and experience of Directors, annual assessment of the independent
directors and Group Financial Controller; succession plans and board diversity, including gender diversity
and other qualities of the Board, including core-competencies which the Independent Directors should
bring to the Board, assessing and recommending directors for re-election and re-appointment at the
annual general meeting, reviewing training needs of directors and terms of office of the Board Committees’
members.
Insofar as board diversity is concerned, the composition of the Board shall be guided by the Board Diversity
Policy, set out in Appendix C of the Charter, to ensure the Board is of appropriate mix so as to optimize
the performance of the Board as a whole and align the Board’s capabilities with the strategic direction of
the Company. At this point in time, the Board is contemplating the merits and practicalities of having a
workforce diversity policy.
The Remuneration Committee, established by the Board, comprises the following members:
The Board has adopted and formalised Remuneration Policies and Procedures for Directors. The
Remuneration Committee is responsible for evaluating and setting the remuneration policy framework and
recommending to the Board the remuneration package of Directors so as to ensure that the Company is
able to attract and retain directors of the necessary calibre to run the Group successfully. The components
of Directors’ remuneration are structured so as to link rewards to corporate and individual performance
in the case of Executive Directors. In the case of Independent Directors, the level of remuneration reflects
the experience and level of responsibilities undertaken by the individual Independent Director concerned.
The remuneration for non-executive directors shall be decided by the Board as a whole.
Directors do not participate in discussion and decision making on their own remuneration.
Directors’ remuneration for the financial year ended 31 March 2017, categorised into appropriate
components, distinguishing between Executive and Independent Directors, is as follows:
Salaries and
Performance
Fees Awards Allowance EPF Total
Directors (RM) (RM) (RM) (RM) (RM)
COMPANY
Executive Directors
Dato’ Lee Choon Chin 36,000 2,073,000 60,000 255,960 2,424,960
Jee Hon Chong 36,000 - - - 36,000
Chew Chin Choong
(resigned on 1 August 2016) 12,000 721,000 20,000 29,161 782,161
Subtotal 84,000 2,794,000 80,000 285,121 3,243,121
Independent Directors
Yeoh Chin Hoe 72,000 - 33,000 - 105,000
Lee Pet Loi 72,000 - 28,000 - 100,000
Dato’ Jamelah Binti Jamaluddin 72,000 - 18,000 - 90,000
Liew Jee Min @ Chong Jee Min 72,000 - 23,425 - 95,425
SUBSIDIARIES
Jee Hon Chong - 1,966,000 60,000 243,914 2,269,914
The number of Directors of the Company, whose remuneration band falls within the following successive
bands of RM50,000, is as follows:
The Independent Directors bring to bear objective and independent views, advice and judgment on interests,
not only of the Group, but also of shareholders, employees, customers, suppliers and the communities in which
the Group conducts its business. Independent Directors are essential for protecting the interests of shareholders
and can make significant contributions to the Company’s decision making by bringing in the quality of detached
impartiality.
The Group Executive Chairman is responsible for ensuring the adequacy and effectiveness of the Board’s
governance process and acts as a facilitator at Board meetings to ensure that contributions from Directors are
forthcoming on matters being deliberated and that no Board member dominates discussion. The position of
Group Managing Director is currently vacant. The Group Executive Chairman, supported by fellow Executive
Director, implements the Group’s strategies, policies and decisions adopted by the Board and oversees the
operations and business development of the Group.
Checks and balances in corporate decision making at Board level arise from the Board comprising of a majority
of Independent Directors and the existence of a Board Charter that formally sets out a schedule of matters
reserved solely for the Board’s decision making. While the Group Executive Chairman is not an independent
director, the Board comprise a majority of independent directors.
The Independent Directors participated in Board and Board Committees meetings actively and constructively
by expressing their independent views.
The Board, through the Nominating Committee, assesses the Independent Directors annually based on the
Directors’ Selection, Recruitment, Assessment Policies and Procedures. The MCCG 2012 provides a limit of a
consecutive term of nine (9) years on the tenure of an Independent Director. However, an Independent Director
may continue to serve on the Board upon reaching the nine (9)-year limit subject to the Independent Director’s
re-designation as a Non-Independent Non-Executive Director. In the event the Board intends to retain the
Director as Independent Director after the latter has served a consecutive term of nine (9) years, the Board must
justify the decision and seek shareholders’ approval at general meeting. In justifying the decision, the Board
is required to assess the candidate’s suitability to continue as an Independent Director based on the criteria
adopted by the Board.
Following an assessment by the Board, Mr. Yeoh Chin Hoe who has served as Independent Director of the
Company for a consecutive term of more than nine (9) years as at the end of the financial year under review,
has been recommended by the Board to continue to act as Independent Director, subject to shareholders’
approval at the forthcoming Annual General Meeting of the Company. Key justifications for his recommended
continuance as Independent Director are as follows:
• his experience, networking, understanding od business and odjectivity in approach enables him to provide
the Boad and Board Committees with pertinent expertise, skills and competence and his independence
judgement will continue to add credence to the Company;
• he remains professionally independent and vocal, actively participated in deliberations and exercised
independent judgement at Board and Board Committee meetings without being influenced by operational
consideration; and
• he acts in the best interests of all shareholders and his continuation in office as Independent Director will
provide a check and balance to operational management,
The Nominating Committee and the Board have assessed the independence of Mr. Yeoh Chin Hoe and Mr. Lee
Pet Loi who are retiring by rotation at the forthcoming annual general meeting, and recommended them to be
re-elected at the forthcoming annual general meeting.
The Board ordinarily holds at least five (5) scheduled meetings a year. Additional meetings are convened when
urgent and important decisions need to be made between scheduled meetings. Board and Board Committees
papers, which are prepared by Management, provide the relevant facts and analysis for the convenience of
Directors. The meeting agenda, the relevant reports and Board papers are furnished to Directors and Board
Committees members at least seven (7) days before the meeting so that the Directors have ample time to
peruse the papers for effective discussion and decision making during meetings.
At the quarterly Board meetings, the Board reviews the business performance of the Group and discusses major
operational and financial issues. All pertinent issues discussed at Board meetings in arriving at the decisions and
conclusions are properly recorded by the Company Secretaries by way of minutes of meetings.
During the financial year under review, the Board convened five (5) scheduled Board meetings and the details
of attendance of each Director are set out below:
Number of
Meetings Attended
Independent Directors
Yeoh Chin Hoe (Senior Independent Director) 5 out of 5
Dato’ Jamelah Binti Jamaluddin 5 out of 5
Lee Pet Loi 5 out of 5
Liew Jee Min @ Chong Jee Min 5 out of 5
Executive Directors
Dato’ Lee Choon Chin (Group Executive Chairman) 5 out of 5
Jee Hon Chong 5 out of 5
Chew Chin Choong (resigned on 1 August 2016) 2 out of 2
All proceedings, matters arising, deliberations in terms of the issue discussed, and recommendations made by
the Board Committees at the committees’ meetings are recorded in the minutes by the Company Secretaries,
confirmed by the Board Committees, signed by the Chairmen of the said committees. All committees’ meetings
were attended by the Company Secretaries. Upon invitation, Management representatives were present at
the Board Committees’ meetings to provide additional insight into matters to be discussed during the said
committee meetings, if so required.
The Directors had devoted sufficient time and efforts to carry out their responsibilities. The Board shall obtain this
commitment from Directors at the time of their appointment. Each Director is expected to commit time as and
when required to discharge the relevant duties and responsibilities, besides attending meetings of the Board
and Board Committees.
Thus far, the Board is satisfied with the level of time commitment given by all the Directors in fulfilling their roles
and responsibilities as Directors of the Company. This is evidenced by their attendance at the meetings of the
Board and the Board Committees. All the Directors hold not more than five (5) directorships in listed issuers.
The Board acknowledges that its Directors may be invited to become directors of other companies and that
exposure to other organisation can broaden the experience and knowledge of its Directors which may bring
benefits to the Group. Directors are therefore at liberty to accept other board appointments so long as such
appointments are not in conflict with the business of the Group and do not adversely affect the Directors’
performance and contributions as a member of the Board.
The Board is mindful of the importance for its members to undergo continuous training to be apprised on changes
to regulatory requirements and the impact such regulatory requirements have on the Group, to enable the
Directors to sustain their active participation in Board’s deliberations.
During the financial year under review, training attended by Directors includes briefings, seminars and conferences
conducted by relevant regulatory authorities and professional bodies, details of which are appended below:
Mode of Number of
Title of seminar Training Day(s) Spent
The Company Secretaries normally circulate the relevant guidelines on statutory and regulatory requirements
from time to time for the Board’s reference and brief the Board on these updates, where applicable. The Group
Financial Controller and external auditors also brief the Board members on changes to the Financial Reporting
Standards that affect the Group’s financial statements during the financial year under review.
The Nominating Committee and the Board have deliberated and considered the training needs of Directors
and agreed that all Directors should attend at least one (1) training/seminar/course annually. However, all
Directors are encouraged to attend any seminar/training/course that aids them in the discharge of their duties
as directors.
It is the Board’s commitment to present a balanced and meaningful assessment of the Group’s financial
performance and prospects at the end of each reporting period and financial year, primarily through the
quarterly announcement of Group’s results to Bursa, the annual financial statements of the Group and of the
Company as well as the Statement from Group Executive Chairman and review of the Group’s operations in
the Annual Report, where relevant.
The Board is responsible for ensuring that the financial statements give a true and fair view of the state of affairs
of the Group and of the Company as at the end of the reporting period and of their results and cash flows for
the period then ended.
To assist in its discharge of its duties on financial reporting, the Board has established an Audit Committee,
comprising exclusively Non-Executive Directors, all of whom are Independent Directors, with Mr. Yeoh Chin
Hoe as the Audit Committee Chairman. The composition of the Audit Committee, including its roles and
responsibilities, are set out in the Report of the Audit Committee on pages 46 to 50 of this Annual Report. One (1)
of the key responsibilities of the Audit Committee in its specific terms of reference is to ensure that the financial
statements of the Group and of the Company comply with applicable financial reporting standards in Malaysia
and provisions of the Companies Act 2016. Such financial statements comprise the quarterly financial report
announced to Bursa Malaysia Securities Berhad and the annual statutory financial statements.
The Board understands its role in upholding the integrity of financial reporting by the Company. Accordingly,
the Audit Committee, which assists the Board in overseeing the financial reporting process of the Company,
has adopted Non-audit Services Policies and Procedures (“NAS P&P”) as guidelines for the types of non-audit
services permitted to be provided by the external auditors, including the need for the Audit Committee’s
approval before such services can be provided by the external auditors.
In assessing the independence of external auditors, the Audit Committee has adopted an External Auditor
Performance and Independence Checklist and obtained written assurance from the external auditors,
confirming that they and their network firm, engagement partner and audit team’s independence, integrity
and objectivity comply with relevant ethical requirements. The Audit Committee assessed the external auditors
annually and was satisfied with the services, performance and suitability of the external auditors and was of the
view that Messrs. KPMG PLT are suitable to be re-appointed as external auditors.
During the financial year under review, the Audit Committee met with the external auditors twice (2) without the
presence of the other Directors and employees of the Group.
The Board regards risk management and internal controls as an integral part of the overall management
processes. The following represents the key elements of the risk management and internal control structure:
(a) An organisational structure in the Company with formally defined lines of responsibility and delegation of
authority;
(b) Review and approval of annual business plan and budget of all major business units by the Board. This plan
sets out the key business objectives of the respective business units, the major risks and opportunities in the
operations and ensuing action plans;
(c) Quarterly review of the Group’s business performance by the Board, which also covers the assessment of
the impact of changes in business and competitive environment;
(d) Active participation and involvement by the Group Executive Chairman, supported by his fellow Executive
Directors, in the day-to-day running of the major businesses and regular discussions with senior management
personnel on operational issues; and
The Board is aware of the importance of putting in place a risk management framework promulgated
by Recommendation 6.1 of MCCG 2012. Accordingly, steps are being taken by the Board to formalise this
framework as further elaborated in the Statement on Risk Management and Internal Control.
The Risk Management Committee was established on 26 May 2015 by the Board to assist the Board to oversee
the overall management of principal areas of risk of the Group. The Risk Management Committee, headed
by the Group Executive Chairman, carries out its responsibility to identify and communicate to the Board the
principal risks faced by the Group, their evolution, and management action plans to manage these risks.
In line with MCCG 2012 and Listing Requirements of Bursa, the Company has established an in-house internal
audit function to assess the adequacy and effectiveness of the Group’s governance, risk management and
internal control systems. The in-house internal audit function is guided by professional standards promulgated
by the Institute of Internal Auditors Inc, a globally recognised professional body for internal auditors. The Internal
Audit Manager reports directly to the Audit Committee. The internal audit function is independent of the
activities it audits and the scope of work covered by the internal audit during the financial year under review is
provided in the Report of the Audit Committee of the Company set out on pages 49 to 50 of this Annual Report.
The Board is aware of the need to establish corporate disclosure policies and procedures to enable
comprehensive, accurate and timely disclosures relating to the Company and its subsidiaries to be made to the
regulators, shareholders and stakeholders.
Accordingly, the Board has adopted and formalised pertinent Corporate Disclosure Policies and Procedures, not
only to comply with the disclosure requirements as stipulated in Listing Requirement of Bursa, but also setting out
the persons authorised and responsible to approve and disclose material information to regulators, shareholders
and stakeholders.
To augment the process of disclosure, the Board has earmarked a dedicated section for corporate governance
on the Company’s website, where information on the Company’s announcements to the regulators, its Charter,
rights of shareholders and the Company’s Annual Report may be accessed.
The Annual General Meeting (“AGM”), which is the principal forum for shareholder dialogue, allows shareholders
to review the Group’s performance via the Company’s Annual Report and pose questions to the Board for
clarification. At the AGM, shareholders participate in deliberating resolutions being proposed or on the Group’s
operations in general. At the last AGM, a question and answer session was held where the Group Executive
Chairman invited shareholders to raise questions with responses from the Board and Senior Management.
The Notice of AGM was circulated more than twenty-one (21) days before the date of the AGM to
enable shareholders to peruse the Annual Report and papers supporting the resolutions proposed. All the
resolutions set out in the Notice of the last AGM were put to vote by poll and duly passed and the poll
results were validated by an independent scrutineer. The Chairman of the AGM declared the outcome of
each resolution. The outcome of the AGM was announced to Bursa on the same meeting day.
In line with the recent amendments made to the Paragraph 8.29A of Listing Requirements, all resolutions
set out in the notice of the Company’s forthcoming AGM will be voted on by poll and the Company shall
appoint at least one (1) scrutineer to validate the votes at the AGM. A summary of key matters discussed
thereat, if any, shall be published in the Company website as soon as practicable after the conclusion of
the AGM.
The Board recognises the importance of being transparent and accountable to the Company’s shareholders
and prospective investors. The various channels of communications are through meetings with institutional
shareholders and investment communities, quarterly announcements on financial results to Bursa, relevant
announcements and circulars, and when necessary, the Annual and Extraordinary General Meetings and
through the Group’s website at www.weida.com.my where shareholders and prospective investors can
access corporate information, annual reports, press releases, financial information and announcements of
the Company. To maintain a high level of transparency and to effectively address any issues or concerns,
the Group has a dedicated electronic mail, i.e. weida@weida.com.my to which stakeholders can direct
their queries or concerns.
Mr. Yeoh Chin Hoe is the Senior Independent Director duly identified by the Board to whom concerns or
queries concerning the Weida Group may be conveyed to.
COMPLIANCE STATEMENT
The Group is considered complied with the principles and recommendations of the MCCG 2012, other than the
exceptions stated hereinbefore.
With the introduction of the MCCG 2017 which took effect on 26 April 2017, the Board remains committed to
inculcating good corporate governance for the Group. The Group will continue to endeavour to comprehend
with all the principles and practices of MCCG 2017 where the Board deems appropriate, in its effort to observe
high standards of transparency, accountability and integrity to achieve the intended outcomes of building and
supporting a strong corporate governance culture throughout the Group.
The Nominating Committee met once during the financial year under review. The meeting was attended by all
its members who are Independent Directors.
During the financial year ended 31 March 2017, the Nominating Committee assessed the mix of skill, experience
and other qualities required for the Board, effectiveness and performance of the Board and Board Committees,
contributions and performance of each individual Director, as well as the Group Financial Controller and
the independence of the Independent Directors. In addition, the Nominating Committee also assessed the
Directors who are due for retirement and re-appointment pursuant to the Company’s Articles of Association
and Companies Act 2016, a candidate for the position of Independent Director, and made the necessary
recommendations to the Board for deliberations and decision makings. It also ensures an appropriate framework
and plan for Board and Senior Management succession. The Nominating Committee also assessed the training
needs of Directors.
The Nominating Committee reviews and recommends to the Board the structure, size, balance and composition
of the Board and Board Committees. This requires a review of the required mix of skills and experience including
core competencies that directors should bring to the Board and other qualities for the Board to function
effectively and efficiently.
This Statement is issued in accordance with a resolution of the Board of Directors dated 19 June 2017.
The following information is presented in compliance with the Main Market Listing Requirements:
There were no proceeds raised from any corporate proposals during the financial year under review.
Non-Audit Fees
The fees paid/payable to the external auditors, KPMG PLT for the financial year ended 31 March 2017 are set
out as below:
Group Company
RM RM
403,061 110,000
Non-Audit Fees:
- KPMG PLT Malaysia 17,000 17,000
- Local affiliates of KPMG PLT Malaysia 201,090* 64,000*
- Overseas affiliates of KPMG PLT Malaysia 3,192 -
- Local affiliates of other auditors 15,000 -
236,282 81,000
* Included in this non-audit fees of the Group and the Company was an amount of RM116,000 and RM52,000
respectively paid to KPMG Tax Services Sdn. Bhd. in relation to the consultation on transfer pricing.
There were no material contracts entered by the Group involving Directors’ and major shareholders’ interests
subsisting at the end of the financial year under review or entered into since the end of the financial year under
review.
During the financial year ended 31 March 2017, the Group did not seek any mandate of its shareholders
pertaining to RRPT.
The breakdown of realised and unrealised profits as at 31 March 2017 are disclosed in Note 35 to the financial
statements for the financial year ended 31 March 2017, as outlined on page 160 of this Annual Report.
The Directors are required under the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, to
issue a statement explaining their responsibility for preparing the financial statements.
The Directors are also required by the Companies Act, 2016 (“the Act”) to prepare financial statements for
each financial year which give a true and fair view of the state of affairs of the Company and of the Group at
the end of the financial year and the results and cash flows of the Company and of the Group for the financial
year then ended.
As required by the Act, the financial statements have been prepared in accordance with the Financial
Reporting Standards and the provisions of the Act. The Directors have considered that in preparing the
financial statements for the financial year ended 31 March 2017 as set out on pages 67 to 160 of this Annual
Report, appropriate accounting policies have been adopted and are consistently applied and supported by
reasonable and prudent judgements and estimates.
The Directors have responsibility to ensure the Company and the Group maintain proper accounting records
which disclose with reasonable accuracy, the financial position and performance of the Company and the
Group, and to enable them to ensure the financial statements comply with the Act. The Directors have overall
responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and
the Group and to prevent and detect fraud and other irregularities.
This statement is issued in accordance with a resolution of the Board of Directors dated 19 June 2017.
The Audit Committee (“the Committee”) is established by the Board of Directors (“the Board”) of Weida (M)
Bhd. (“the Company”) in compliance with Paragraph 15.15 of the Main Market Listing Requirements (“MMLR”)
of Bursa Malaysia Securities Berhad (“Bursa”).
The above composition meets the requirements of Paragraph 15.09(1)(c) of the MMLR and complies with
the Malaysian Code on Corporate Governance 2012 (“MCCG 2012”). Mr. Yeoh Chin Hoe is a member of the
Malaysian Institute of Accountants (“MIA”) and two (2) other associations of accountants specified in Part II of
the First Schedule of the Accountants Act 1967. All members of the Committee are financially literate.
During the financial year ended 31 March 2017, the training programmes attended by some of the Committee’s
members are as follows:
Number of
Title of Seminar Mode of Training Day(s) Spent
• New Company Law’s Impact on your Business and Duties External Seminar ½ day
• General Personal Accident, Medical Malpractice and Travel External Seminar 1 day
Insurance
• Pay Structure Development External Seminar 1 day
During the financial year ended 31 March 2017, the Committee held five (5) meetings which were attended by
the members as follows:
N
umber of Meetings Attended
The Group Executive Chairman, Senior Management, External and Internal Auditors attended some of these
meetings upon invitation by the Committee to brief the Committee on specific issues arising from the reports
presented at the meetings or any matter of interest.
All proceedings, matters arising and deliberations in terms of the issues discussed, and recommendations of the
Committee are recorded in the minutes by the Company Secretaries, confirmed by the Committee and signed
by the Chairman of the meeting. Subsequently, the Chairman of the meeting presented the Committee’s
deliberations and recommendations to the Board for approval and notation.
All the Committee meetings were attended by both of the two (2) Company Secretaries.
SUMMARY OF ACTIVITIES
During the year ended 31 March 2017, the Committee, had in line with its terms of reference, carried out the
following activities in the discharge of its functions and duties:
1. Financial Reporting
(a) reviewed the quarterly unaudited financial statements and annual audited financial statements of
the Group against the preceding year’s results prior to submission to the Board for consideration and
approval before releasing to Bursa and Securities Commission Malaysia;
(b) reviewed the quarterly unaudited financial statements and annual audited financial statements, the
Committee discussed with Management and the External Auditors on the followings:
(c) reviewed the Group’s actual results against budgeted results on a quarterly basis; and to revise the
budget, if need to;
(d) reviewed the profit and cash flow projections to determine any indication of impairment in the
intangible assets and property, plant and equipment for recommendation to the Board; and
(e) considered inventory written off/back and bad receivable written off and the impact arising
therefrom.
(a) reviewed the Annual Audit Planning Memorandum presented by the External Auditors covering
the audit scope and methodology, timing of audit, audit focus areas, key milestone and reported
observation in prior’s year audit. The Committee discussed the potential key audit matters for the
financial year under review and a mock copy of the Independent Auditors’ Report was tabled to the
Committee;
(b) reviewed and deliberated on the External Auditors’ reports in relation to the statutory audit, major
audit findings and the Management’s responses arising from the audit on the financial statements for
the financial year ended 31 March 2016;
(c) assessed the independence, performance and suitability of External Auditors to serve the Group in
terms of their competency, manpower resources, audit and non-audit fees charged to the Group,
non-audit services, independence and objectivity;
(d) considered and recommended to the Board for approval, the re-appointment of External Auditors,
as well as their remuneration; and
(e) met up with the External Auditors twice, without the presence of the other Directors and employees
of the Group to provide an avenue for the External Auditors to express any concern they might have,
including those relating to their ability to perform their work without restraint and interference.
(a) reviewed and approved the Annual Internal Audit Plan and updates thereof prepared by the Internal
Audit Department (“IAD”);
(b) reviewed and deliberated on the internal audit reports presented by the IAD on findings,
recommendations (incorporating Management’s response), action plans with persons responsible,
time frame for implementation of the recommendations, effectiveness, and adequacncy of
governance, risk management operational and compliance processes;
(c) reviewed the adequacy of the scope, functions, competency and resources of the internal audit
function and that it has the necessary authority to carry out its work;
(d) reviewed the Internal Auditor’s performance and their independence and effectiveness of the
overall audit process; and
(e) met up with the Internal Auditors without the presence of the other Directors and employees of the
Group to discuss issues and/or observations that they may have in the course of audit, the extent of
cooperation and assistance provided by the Group and Management and whether they face any
restriction to the records and information of the Group.
(a) reviewed related party transactions and conflict of interest situation that may arise within the Company
and the Group including any transactions, procedures or course of conduct that raises questions of
Management integrity prior to submission to the Board for ratification, consideration and approval
to ensure that the related party transactions are entered into in accordance with the related party
transaction policies and procedures adopted by the Group, and are on terms not more favourable
to the related party than those generally available to the public and not the detriment of the minority
shareholders;
(b) reviewed the adequacy of the disclosure on related party transactions entered into by the Company
and the Group in the notes to the quarterly results and Annual Report of the Company; and
(c) reviewed the revised related party transaction policies and procedures for Board’s approval.
(a) reviewed changes and implementation of policies and procedures in relation to business operations
prior to recommendation to the Board for approval.
(a) reviewed the Statement on Risk Management and Internal Control duly confirmed by the External
Auditors that no exception was noted and it is in accordance with Recommended Practice Guide 5
(revised 2015), for disclosure in Annual Report 2016 prior to recommendation to the Board for approval.
(a) reviewed the proposed amendments made to the terms of reference of the Committee, to be in line
with the MMLR of Bursa and recommended to the Board for approval.
The Group has an IAD which assists the Committee in discharging its duties and functions as outlined in the
Committee’s terms of reference. The Internal Audit Charter sets out the purpose, responsibility, scope,
independence and authority of the IAD. The internal audit function adopt a risk-based audit approach in
planning and conducting audits by focusing on key risk areas.
The principal responsibility of the IAD is to undertake regular and systematic reviews of the system of internal
controls, recommending cost-effective measures to mitigate these risks, enhance operational efficiency and
implementation of sound governance processes. It is independent of the activities it audits.
In attaining these objectives, the scope of activities of the IAD include the following:
(a) review and appraise the soundness, adequacy and application of the system of internal controls and
recommend improvements thereon;
(b) ascertain the extent of compliance with established policies, procedures and statutory requirements;
(c) appraise the reliability, integrity and usefulness of financial and management information developed;
(d) review the controls for safeguarding assets and as appropriate, verify the existence of assets;
(e) carry out special reviews and investigations requested by the Committee and the Board; and
(f) identify ways and opportunities to improve the effectiveness and efficiency of the operations and processes
of the Group.
During the financial year under review, the IAD is headed by the Internal Audit Manager who reports directly to
the Committee. IAD is tasked to provide reasonable assurance to the Committee on the effectiveness of the risk
management, internal control and governance processes within the Group.
The IAD has, during the financial year ended 31 March 2017, carried out planned audits on the significant
operations of the Group based on assessed risks. The internal audit reports on the adequacy of controls and
extent of compliance to internal financial policies and operational procedures were deliberated on by the
Committee and recommendations were duly acted upon by the Management.
The internal audit activities carried out during the financial year under review included, inter alia, the following:
(a) evaluated the system of internal controls and key operating processes based on the approved annual
plan;
(b) evaluated the efficiency of processes, functions and current practices, and provided suitable
recommendations;
(c) provided assurance on compliance with statutory requirements, laws, Group’s policies and guidelines;
(d) evaluated the risk management framework and recommended improvements on the adequacy and
effectiveness of Management’s risk processes; and
Follow-up audits on the observations arising from the previous audits were also conducted and the status of
implementation on the agreed corrective actions were highlighted to the Committee. Such regular monitoring
is essential to ensure the effectiveness of the Group’s system of internal control.
The total costs incurred for the IAD during the financial year ended 31 March 2017 amounted to RM184,961.
This report is issued in accordance with a resolution of the Board of Directors dated 19 June 2017.
INTRODUCTION
The Board of Directors (the “Board”) of Weida (M) Bhd. (“the Company”) is committed to maintain a sound
system of risk management and internal control in the Company and its Group of Companies (“the Group”)
and is pleased to provide the following Statement on Risk Management and Internal Control (“Statement”),
which outlines the nature and scope of risk management and internal control of the Group during the financial
year ended 31 March 2017. For the purpose of disclosure, this Statement takes into account the Guidelines for
Directors of Listed Issuers (“Guidelines”) issued by Bursa Malaysia Securities Berhad (“Bursa”) on the issuance of
the Statement pursuant to Paragraph 15.26(b) of the Main Market Listing Requirements.
BOARD RESPONSIBILITY
The Board recognises the importance of maintaining a sound system of internal control and the proper
management of risks affecting the Group’s operations in order to achieve the Group’s business objectives,
safeguard the Group’s assets as well as the interest of shareholders, customers, regulators and employees.
Accordingly, the Board affirms its overall responsibility for the Group’s system of internal control and risk
management, and for reviewing the operating adequacy and effectiveness of the said system. The system
covers not only financial but also operational and compliance risks and the relevant controls designed to
manage the said risks.
In view of the limitations inherent in any system of risk management and internal controls, the system is designed
to manage, rather than eliminate, the risk of failure to achieve the Group’s business and corporate objectives.
The system can therefore only provide reasonable, but not absolute assurance, against material misstatement
or loss.
The Board has in place an on-going process for identifying, evaluating and managing the significant risks faced
by the Group. The Board, through its Audit Committee, reviews the results of this process, including mitigating
measures taken by Management, to address areas of key risks as identified. This process has been in place for
the financial year under review and up to the date of approval of this Statement for inclusion in the Annual
Report of the Company.
The Board is committed to put in place a risk management framework promulgated by Recommendation 6.1
of the Malaysian Code on Corporate Governance 2012 (“MCCG 2012”). Accordingly, steps are being taken
by the Board to formalise this framework, which provided a structured process to identify, evaluate, control,
report and monitor significant risks faced by the Group, culminating in the compilation of a Group Risk Profile
with specific risk registers for each operating company in the Group as well as action plans for mitigating the
identified risks. The framework includes a risk management policy and guidelines document, the risk parameters,
i.e. financial and non-financial criteria for evaluating the likelihood of risk and its impact to the Group. The Group
Risk Profile and Risk Register include the following risk information:
(a) the principal risks faced by the Group under appropriate risk categories based on the key processes of
operations;
(b) the likelihood of risks crystallising and the resulting impact thereof; and
For each of the risk identified, designated personnel of the companies in the Group is assigned to ensure
appropriate risk response actions are carried out in a timely manner.
The Risk Management Committee (“RMC”) was established on 26 May 2015 by the Board to assist the Board
to oversee the overall management of principal areas of risk of the Group. The RMC, headed by the Group
Executive Chairman, carries out its responsibility to identify and communicate to the Board the principal risks
faced by the Group, their evolution, and Management’s action plans to manage these risks. Furthermore, a
Risk Management Working Group (“RMWG”), comprising Senior Executives and risk owners, was established on
1 December 2015 by RMC. The primary purpose of the RMWG is to assist the RMC in discharging its duties and
functions as outlined in RMC’s terms of reference.
The Audit Committee evaluates the in-house internal audit function to assess its effectiveness in the discharge
of its responsibilities. The internal audit function provides assurance to the Audit Committee through the
execution of internal audit based on a risk-based Internal Audit Plan approved by the Audit Committee before
commencement of work. Its scope of works includes reviews and evaluation of operational and financial
controls for operations within the strategic business units of the Group. The in-house internal audit function is
independent of the activities it audits.
Observations from internal audit carried out are presented, together with Management’s response and
proposed action plans, to the Audit Committee. The internal audit function also follows up and reports to the
Audit Committee on the status of implementation of action plans by Management on the recommendations
highlighted in the Internal Audit Reports, especially on areas where material internal control deficiencies or
lapses have been noted. The Audit Committee considers reports from the internal audit function and comments
from Management, before presenting summaries of the report to the Board on a quarterly basis or earlier as
appropriate. Further details of the activities of the internal audit function are provided in the Report of the Audit
Committee.
The key elements of the Group’s internal control system are described below:
Defined and documented lines and limits of authority, responsibility and accountability have been
established through the relevant charters/terms of reference, organisational structures and appropriate
authority limits. These enhance the Group’s ability to achieve its strategies and operational objectives. The
corporate structure further enhances the ability of each subsidiary or division, as the case may be, to focus
on its assigned core or support functions within the Group;
Defined internal policies and procedures as set out in the Group’s Policies and Procedures covering
various operational aspects are updated periodically to reflect changing risks or to address operational
deficiencies. These help to enable internal control principles and mechanisms to be embedded in the
operations within the Group;
• There is an established strategic planning and budgeting process, requiring all functional units to
prepare the annual strategic plan, capital and operating expenditure budgets for discussion and
approval by the Board;
• Major capital expenditure and asset disposals are appraised and approved by the Board as well as
the boards of directors of subsidiaries;
• Internal audits have been conducted by in-house internal audit function to monitor compliance
with operating policies and procedures as well as MCCG 2012, highlighting significant risks, area of
weaknesses and non-compliances for rectification or further enhancement;
• Management meetings are held to identify, discuss and resolve strategic, operational, financial and
key management issues;
• A reporting system generates monthly performance and variance reports for review by Management
and actions to be taken, where necessary;
• Monthly management reports covering all key financial and operational indicators, is provided to
Senior Management for the monitoring of performance against strategic plan;
• The Audit Committee reviews the Group’s quarterly financial performance, together with
Management, which is subsequently reported to the Board;
• Written declaration by all employees confirming their agreement to abide by the Group’s code of
conduct and ethics as contained in the Employee’s Handbook is in place to support the business
objectives;
• Whistle-Blowing Policies and Procedures are in place, with mechanisms to provide avenues for raising
concerns related to possible breach of business conduct, non-compliance of laws and regulatory
requirements as well as other malpractices;
• Appropriate insurance coverage and physical safeguards over major assets are in place to ensure
that the assets of the Group are adequately covered against calamities and/or theft that may result
in material losses to the Group;
• Reporting structures are in place to provide documentation and auditable trail of accountability; and
• The Audit Committee members are Independent Non-Executive Directors and they have full access
to all staff, Internal Auditors or persons carrying out the internal audit function or activity and External
Auditors.
The Group Executive Chairman and Group Financial Controller have provided assurance to the Board in writing
stating that the Group’s internal control system has operated adequately and effectively, in all material aspects,
to meet the Group’s objectives during the financial year under review.
The Board is of the view that the internal control system is satisfactory and have not resulted in any material
losses, contingencies or uncertainties that would require disclosure in this Annual Report. The Board continues to
take pertinent measures to sustain and, where required, to improve the Group’s risk management activities and
internal control system in meeting the Group’s strategic objectives.
This Statement is issued in accordance with a resolution of the Board of Directors dated 19 June 2017.
60 Statement by Directors
60 Statutory Declaration
The Directors have pleasure in submitting their report and the audited financial statements of the Group and of
the Company for the financial year ended 31 March 2017.
Principal activities
The Company is principally engaged in investment holding and the provision of management services to its
subsidiaries. There has been no significant change in the nature of these activities during the financial year.
Subsidiaries
The details of the Company’s subsidiaries are disclosed in Note 5 to the financial statements.
Results
Group Company
RM RM
20,101,240 21,294,006
There were no material transfers to or from reserves and provisions during the financial year under review, except
as disclosed in the financial statements.
Dividends
Since the end of the previous financial year, the amount of dividends paid by the Company were as follows:
In respect of the financial year ended 31 March 2016 as reported in the Directors’ Report of that year, a first and
final single-tier exempt dividend of 3.00 sen per ordinary share of RM0.50 each totalling RM3,806,830 declared
on 20 June 2016 and paid on 27 October 2016.
The first and final single-tier exempt dividend recommended by the Directors in respect of the financial year
ended 31 March 2017 is 3.00 sen per ordinary share totalling RM3,806,827, the payment of which is subject to
approval by shareholders at the forthcoming Annual General Meeting which will be recognised in subsequent
financial period.
Directors who served during the financial year until the date of this report are:
The interests and deemed interests in the shares of the Company and of its related corporations of those who were
Directors at financial year end (including where applicable the interests of their spouses or children who themselves
are not Directors of the Company) as recorded in the Register of Directors’ Shareholdings are as follows:
N
umber of ordinary shares
At At
1.4.2016 Allotted Sold 31.3.2017
Ordinary shares:
Subsidiaries
* Deemed interest by virtue of his substantial interest in Weida Management Sdn. Bhd. and the interests of his
children in Weida (M) Bhd.
** Deemed interest by virtue of his substantial interest in Weida (M) Bhd.
^ Disposed of during the current financial year
# Associate of Weida Medic Development Sdn. Bhd.
The other Directors holding office at 31 March 2017 did not have any interest in the shares of the Company and
of its related corporations during the financial year.
Directors’ benefits
Since the end of the previous financial year, no Director of the Company has received nor become entitled to
receive any benefit (other than those fees and other benefits included in the aggregate amount of remuneration
received or due and receivable by Directors as shown in the financial statements or the fixed salary of a full time
employee of the Company or of related corporations) by reason of a contract made by the Company or a
related corporation with the Director or with a firm of which the Director is a member, or with a company in
which the Director has a substantial financial interest, other than certain Directors who have substantial financial
interests in companies which traded with certain companies in the Group in the ordinary course of business
which a Director is member as disclosed in Note 33 to the financial statements.
There were no arrangements during and at the end of the financial year which had the object of enabling
Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the
Company or any other body corporate.
There were neither changes in the issued and paid-up capitals of the Company, nor issuances of debentures by
the Company, during the financial year.
No options were granted to any person to take up unissued shares of the Company during the financial year.
During the financial year, the total amount of indemnity given to and insurance effected for Directors of the
Company amounted to RM1,509 (premium paid) and RM5,000,000 (sum insured) respectively.
Before the financial statements of the Group and of the Company were made out, the Directors took reasonable
steps to ascertain that:
i. all known bad debts have been written off and adequate provision made for doubtful debts, and
ii. any current assets which were unlikely to be realised in the ordinary course of business have been written
down to an amount which they might be expected so to realise.
At the date of this report, the Directors are not aware of any circumstances:
i. that would render the amount written off for bad debts or the amount of the provision for doubtful debts
in the Group and in the Company inadequate to any substantial extent, or
ii. that would render the value attributed to the current assets in the financial statements of the Group and of
the Company misleading, or
At the date of this report, the Directors are not aware of any circumstances: (continued)
iii. which have arisen which render adherence to the existing method of valuation of assets or liabilities of the
Group and of the Company misleading or inappropriate, or
iv. not otherwise dealt with in this report or the financial statements that would render any amount stated in
the financial statements of the Group and of the Company misleading.
i. any charge on the assets of the Group or of the Company that has arisen since the end of the financial
year and which secures the liabilities of any other person, or
ii. any contingent liability in respect of the Group or of the Company that has arisen since the end of the
financial year.
No contingent liability or other liability of any company in the Group has become enforceable, or is likely to
become enforceable within the period of twelve months after the end of the financial year which, in the opinion
of the Directors, will or may substantially affect the ability of the Group and of the Company to meet their
obligations as and when they fall due.
In the opinion of the Directors, the financial performance of the Group and of the Company for the financial
year ended 31 March 2017 have not been substantially affected by any item, transaction or event of a material
and unusual nature nor has any such item, transaction or event occurred in the interval between the end of that
financial year and the date of this report.
On 28 April 2017, Asaljuru Weida Sdn. Bhd., a 49% owned associated company of Weida Medic Development
Sdn. Bhd., which in turn is a wholly-owned subsidiary of the Company, has entered into a concession agreement
with the Government of Malaysia as represented by the Minister of Health in relation to the upgrading of Hospital
Umum Sarawak by way of development of new buildings, on a public private partnership by way of private
financing initiatives under the build, lease, maintain and transfer model. The concession shall be for a period of
20 years, comprising a construction period of 3 years, followed by asset management services and the operation
and management services of the medi-hotel and car park for a period of 17 years thereafter.
Auditors
The auditors, KPMG PLT (converted from a conventional partnership, KPMG, on 27 December 2016), have
indicated their willingness to accept re-appointment.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
.....................…………............….........
Yeoh Chin Hoe
Director
................................……………..........
Dato’ Lee Choon Chin
Director
Kuching,
Date: 19 June 2017
In the opinion of the Directors, the financial statements set out on pages 67 to 159 are drawn up in accordance
with Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia so as to give
a true and fair view of the financial position of the Group and of the Company as of 31 March 2017 and of their
financial performance and cash flows for the financial year then ended.
In the opinion of the Directors, the information set out in Note 35 on page 160 to the financial statements
has been compiled in accordance with the Guidance on Special Matter No.1, Determination of Realised and
Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing
Requirements, issued by the Malaysian Institute of Accountants, and presented based on the format prescribed
by Bursa Malaysia Securities Berhad.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
.....................…………............….........
Yeoh Chin Hoe
................................……………..........
Dato’ Lee Choon Chin
Kuching,
Statutory declaration
pursuant to
Section 251(1)(b) of the Companies Act, 2016
I, Wang Tin Ngee, the officer primarily responsible for the financial management of Weida (M) Bhd., do solemnly
and sincerely declare that the financial statements set out on pages 67 to 160 are, to the best of my knowledge
and belief, correct and I make this solemn declaration conscientiously believing the declaration to be true, and
by virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the abovenamed Wang Tin Ngee, at Kuching in the State of Sarawak on
19 June 2017.
……………………………………………….
Wang Tin Ngee
Before me:
Opinion
We have audited the financial statements of Weida (M) Bhd., which comprise the statements of financial
position as at 31 March 2017 of the Group and of the Company, and the statements of profit or loss and other
comprehensive income, statements of changes in equity and statements of cash flows of the Group and of the
Company for the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, as set out on pages 67 to 159.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the
Group and of the Company as at 31 March 2017, and of their financial performance and their cash flows for the
year then ended in accordance with Financial Reporting Standards and the requirements of the Companies
Act, 2016 in Malaysia.
We conducted our audit in accordance with approved standards on auditing in Malaysia and International
Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’
Responsibilities for the Audit of the Financial Statements section of our auditors’ report. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional
Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics
Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”), and we have
fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial statements of the Group and of the Company for the current year. These matters were addressed
in the context of our audit of the financial statements of the Group and of the Company as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Refer to Note 2(o)(ii) (Construction contract accounting policy) and Note 21 (Revenue)
The key audit matter How the matter was addressed in our audit
The revenue from construction contracts Our audit procedures included, amongst others:
accounted for approximately 14% of the
Group’s total revenue. We evaluated the design and implementation of
controls for the process of determining the revenue
Revenue arose from the Group’s construction recognised in the financial statements.
contracts requires significant management
judgment in the assessment of the current and We compared the stage of completion recognised
future financial performance of the contracts. by the Group against the percentage of completion
based on cost method. Our procedures include
The Group recognises contract revenue and inspecting to certificates verified by surveyors/
contract cost in profit or loss using the stage consultants and comparing actual costs with
of completion method, by reference to the estimated costs.
completion of a physical proportion of the
contract work (for telecommunication towers We assessed and challenged the estimation of
contracts) and survey of work performed (for the remaining costs to complete the projects by
installation and construction of wastewater and checking to the sub-contractors contracts and
water treatment contracts). quotations for the remaining costs to be incurred.
We identified this area as a key audit matter due We inspected all construction contracts and
to significant judgement involved in estimating checked the contract sum of all new contracts
revenue recognised over the contract life and secured to letters of award/agreements and for
determining the achievement of contractual existing projects, to approved variation orders.
milestones in the stage of completion method .
We checked to certificate of completion for projects
completed during the year and certificate of making
good defects for projects that have a lapsed defect
liability period.
Refer to Note 2(o)(iii) (Property development accounting policy) and Note 21 (Revenue)
The key audit matter How the matter was addressed in our audit
The revenue from property development Our audit procedures included, amongst others:
activities accounted for approximately 17% of
the Group’s total revenue. We evaluated the design and implementation of
controls for the process on the sales of properties,
The Group used percentage of completion review of budgeted costs and revenue recognised,
method to recognise revenue and profit from its and procurement of sub-contractors.
property development activities.
We challenged the basis of estimations made by
The amount of revenue and profit recognised the project management teams in regards to the
are dependent on, amongst others, the extent estimated costs to complete the properties and
of costs incurred to the total estimated costs assessed whether there were management biasness.
of construction to derive the percentage of Our procedures includes evaluating the historical
completion, the actual number of units sold accuracy of the Group’s estimation process by
and the estimated total revenue for the project. comparing actual costs incurred with the estimated
costs that had previously been estimated, and
We identified this area as a key audit matter tested estimated costs to contracts and suppliers’
because of the degree of judgment involved quotations.
in estimating the total property development
costs used to determine the percentage We assessed the reasonableness of computed
of completion and gross profit of property stage of completion for the project against
development activities undertaken by the architect certificate and tested the mathematical
Group. computation of the recognised revenue and
expenses during the financial year.
Refer to Note 2(l) (Impairment of financial assets accounting policy) and Note 9 (Trade and other
receivables)
The key audit matter How the matter was addressed in our audit
The Group has a significant level of trade Our audit procedures included, amongst others:
receivables at approximately 14% of its total
assets. We evaluated the design and implementation of
the Group’s controls over the receivables collection
The Group determines allowance for processes, including the Group’s credit control
impairment losses on doubtful receivables process over aged receivables and customer credit
based on an on-going review and evaluation approvals.
performed as part of its credit risk evaluation
process. The evaluation is however inherently We tested the adequacy of the Group’s allowances
judgemental and requires material estimates, against trade receivables by assessing the
including the amounts and timing of future cash assumptions made by the Group in determining the
flows expected to be received, which may be level of allowances for each category of aged debt,
susceptible to significant changes. with reference to the profile of aged debts at the
reporting date and post year-end payment records.
The Group’s exposure to credit risk arises
principally from its receivables. We have We also considered the adequacy of the Group’s
identified recoverability of trade receivables as disclosures about the degree of judgement and
a key audit matter because the recoverability estimation involved in arriving at the allowances for
is dependent on the credit worthiness of the impairment of receivables.
customers and their ability to settle the amounts
due which increases the risk of non-payment
and non-recovery. Accordingly, allowance for
impairment losses are required when there is
indicator of non-payment and non-recovery of
debts.
We have determined that there is no key audit matter in the audit of the separate financial statements of
the Company to communicate in our auditors’ report.
Information Other than the Financial Statements and Auditors’ Report Thereon
The Directors of the Company are responsible for the other information. The other information comprises the
information included in the annual report, but does not include the financial statements of the Group and
of the Company and our auditors’ report thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the annual
report and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company, our responsibility
is to read the annual report and, in doing so, consider whether the annual report is materially inconsistent
with the financial statements of the Group and of the Company or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that
there is a material misstatement of the annual report, we are required to report that fact. We have nothing
to report in this regard.
The Directors of the Company are responsible for the preparation of financial statements of the Group and
of the Company that give a true and fair view in accordance with Financial Reporting Standards and the
requirements of the Companies Act, 2016 in Malaysia. The Directors are also responsible for such internal control
as the Directors determine is necessary to enable the preparation of financial statements of the Group and of
the Company that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing
the ability of the Group and of the Company to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the Directors either intend to
liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and
of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and
International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards
on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We
also:
• Identify and assess the risks of material misstatement of the financial statements of the Group and of the
Company, whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit 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 internal control of the Group and of the Company.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Directors.
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the ability of the Group or of the Company to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditors’ report to the related disclosures in the financial statements of the Group and of the Company
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause
the Group or the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements of the Group and of
the Company, including the disclosures, and whether the financial statements of the Group and of the
Company represent the underlying transactions and events in a manner that gives a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial statements of the Group. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the financial statements of the Group and of the Company for the current year and are therefore
the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our auditors’ report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
In accordance with the requirements of the Companies Act, 2016 in Malaysia, we report that the subsidiaries of
which we have not acted as auditors is disclosed in Note 5 to the financial statements.
The supplementary information set out in Note 35 is disclosed to meet the requirement of Bursa Malaysia Securities
Berhad and is not part of the financial statements. The Directors are responsible for the preparation of the
supplementary information in accordance with Guidance on Special Matter No. 1, Determination of Realised
and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing
Requirements, as issued by the Malaysian Institute of Accountants (“MIA Guidance”) and the directive of Bursa
Malaysia Securities Berhad. In our opinion, the supplementary information is prepared, in all material respects, in
accordance with the MIA Guidance and the directive of Bursa Malaysia Securities Berhad.
Other Matter
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the
Companies Act, 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person
for the content of this report.
Kuching
Group Company
2017 2016 2017 2016
Note RM RM RM RM
Assets
Property, plant and equipment 3 109,809,832 107,488,076 536,528 879,014
Prepaid lease payments 4 2,931,922 3,051,058 - -
Investment in subsidiaries 5 - - 58,980,222 56,460,222
Investment in an associate 6 1,360,518 291,902 - 490,000
Goodwill 7 341,313 799,545 - -
Other intangible assets 8 11,498,472 18,711,452 - -
Other receivables 9 - 3,018,130 119,457,228 113,827,438
Other investments 10 3,256 228,422 3,256 3,422
Deferred tax assets 11 1,559,179 2,292,573 - -
Equity
Share capital 18.1 66,666,666 66,666,666 66,666,666 66,666,666
Reserves 18.2 348,214,163 333,906,673 168,319,409 150,832,822
Liabilities
Group Company
2017 2016 2017 2016
Note RM RM RM RM
Gain/(Loss) on disposal/deconsolidation
of subsidiaries 31(i) 35,653 (1,702,250) - -
Group Company
2017 2016 2017 2016
Note RM RM RM RM
The notes on pages 78 to 159 are an integral part of these financial statements.
Attributable to
Non-
Foreign
exchange
Share Revaluation translation
capital reserve reserve
Group Note RM RM RM R
- - -
Changes in ownership interest in a subsidiary - - -
- - 283,097 - - -
- - - 1,702,758 - 1,702,758
- - - - (83,865) (83,865)
- - - - (1,942,080) (1,942,080)
- - - - (2,025,945) (2,025,945)
Attributable to
Non-
Foreign
exchange
Share Revaluation translation
capital reserve reserve
Group (continued) Note RM RM RM R
- - -
- - 472,902 - - -
- - - (20,313) - (20,313)
Non-distributable Distributable
Share Treasury Fair value Retained
capital shares reserve earnings Total
Company Note RM RM RM RM RM
Total comprehensive
(expense)/income for
the financial year - - (310) 7,446,180 7,445,870
Distributions to owners
of the Company
- Own shares acquired 18.2 - (432) - - (432)
- Dividends 27.2 - - - (3,806,836) (3,806,836)
Total distributions to
owners of the Company - (432) - (3,806,836) (3,807,268)
Total comprehensive
(expense)/income for
the financial year - - (166) 21,294,006 21,293,840
Distributions to owners
of the Company
- Own shares acquired 18.2 - (423) - - (423)
- Dividends 27.2 - - - (3,806,830) (3,806,830)
Total distributions to
owners of the Company - (423) - (3,806,830) (3,807,253)
The notes on pages 78 to 159 are an integral part of these financial statements.
Group Company
2017 2016 2017 2016
Note RM RM RM RM
Adjustments for:
Amortisation of:
- goodwill 7 - 41,658 - -
- other intangible assets 8 7,671,212 10,680,122 - -
- prepaid lease payments 4 119,136 119,136 - -
Depreciation of property,
plant and equipment 3.4 8,801,493 9,308,344 404,347 457,300
Goodwill written off 7 - 174,759 - -
Derivative (gain)/loss on
forward foreign exchange contracts (286,946) 360,550 - -
Dividend income (157) (248) (16,180,157) (7,773,168)
(Gain)/Loss on disposal/
deconsolidation of subsidiaries 22 (35,653) 1,702,250 3,300,000 -
(Gain)/Loss on disposal of:
- other investments 22 (1,042,500) 2,500 - -
- property, plant and equipment (78,765) (219,679) (200) 846
Interest expenses 23 2,646,887 5,288,538 2,902,564 3,357,108
Interest income 23 (4,447,274) (3,431,591) (14,347,309) (12,752,561)
(Reversal of)/Allowance of
impairment loss on receivables 22 (332,037) 52,932 - -
Bad debt written off 22 2,487 1,324,551 - -
Property, plant and equipment
written off 22 558,957 99,487 10,002 4,625
Inventory (written back)/
written off 22 (62,261) 611,010 - -
Unrealised foreign exchange
(gain)/loss 22 (125,281) (424,835) (466) 320
Share of results of equity
accounted associate 107,384 109,981 - -
Group Company
2017 2016 2017 2016
Note RM RM RM RM
Acquisition of:
- a subsidiary 31(ii) - (5,250,032) - -
- property, plant and equipment
[Note (i)] (11,583,829) (7,565,440) (71,863) (25,741)
- goodwill - (174,759) - -
Net (increase)/decrease in
investment in subsidiaries - (1,930,000) (5,970,000) 9,848,400
Subscription of shares in associate (1,176,000) - (1,176,000) -
Proceeds from disposal of
associate to a subsidiary - - 1,666,000 -
Proceeds from disposal of:
- other investments 1,267,500 94,500 - -
- subsidiaries - - 150,000 -
- property, plant and equipment 100,470 1,423,206 200 3,250
Net cash inflow/(outflow) from
disposal/deconsolidation of
subsidiaries 31(i) 212,722 (16,401,904) - -
Increase in cash and cash
equivalents pledged with
licenced banks (44,308) (1,169,754) (44,308) (2,009,517)
Dividends received 157 248 16,180,157 7,773,168
Interest received 3,598,694 3,119,338 14,347,309 12,752,561
Net cash (used in)/from investing activities (7,624,594) (27,854,597) 25,081,495 28,342,121
Group Company
2017 2016 2017 2016
Note RM RM RM RM
Notes
During the financial year, the Group and the Company acquired property, plant and equipment in the
following manners:
Group Company
2017 2016 2017 2016
RM RM RM RM
Cash and cash equivalents included in the statements of cash flows comprise the following amounts in the
statements of financial position:
Group Company
2017 2016 2017 2016
RM RM RM RM
The notes on pages 78 to 159 are an integral part of these financial statements.
Weida (M) Bhd. is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the
Main Market of Bursa Malaysia Securities Berhad. The address of its registered office is Wisma Hock Peng, Ground
Floor to 2nd Floor, 123, Green Heights, Jalan Lapangan Terbang, 93250 Kuching, Sarawak.
The consolidated financial statements of the Company as at and for the financial year ended 31 March 2017
comprise the Company and its subsidiaries (together referred to as the “Group” and individually referred to as
“Group entities”) and the Group’s interest in an associate. The financial statements of the Company as at and
for the financial year ended 31 March 2017 do not include other entities.
The Company is principally engaged in investment holding and the provision of management services to its
subsidiaries while the principal activities of the subsidiaries are as stated in Note 5 to the financial statements.
These financial statements were authorised for issue by the Board of Directors on 19 June 2017.
1. Basis of preparation
Given that certain Group entities are transitioning entities (being entities subject to the application of
IC Interpretation 15, Agreements for the Construction of Real Estate and the entity that consolidates
or equity accounts or proportionately consolidates the first-mentioned entities), the Group is currently
exempted from adopting the Malaysian Financial Reporting Standards (“MFRSs”) Framework until
1 April 2018 as mandated by the Malaysian Accounting Standards Board (“MASB”). As a result, the
Group (including the transitioning entities) will continue to apply FRSs as their financial reporting
framework to prepare their financial statements for annual period ending on 31 March 2018.
The followings are accounting standards, amendments and interpretations of the FRSs framework,
that have been issued by the MASB but have not been adopted by the Group and the Company.
The initial application of the above-mentioned FRSs, amendments or interpretations are not expected
to have any material impacts to the current and prior financial statements of the Group and the
Company.
The Group’s and the Company’s financial statements for the annual period beginning on 1 April 2018
and subsequent annual periods will be prepared in accordance with the MFRSs issued by the MASB
and International Financial Reporting Standards.
The Group and the Company will apply the following MFRSs that are not yet effective:
Impacts of the initial application of the above MFRSs and associated amendments/interpretations,
which are or are likely to be applicable to the Group and which are to be applied retrospectively, are
discussed below:
MFRS 15 replaces the guidance in MFRS 111, Construction Contracts, MFRS 118, Revenue,
IC Interpretation 13, Customer Loyalty Programmes, IC Interpretation 15, Agreements for
Construction of Real Estate, IC Interpretation 18, Transfers of Assets from Customers and IC
Interpretation 131, Revenue - Barter Transactions Involving Advertising Services.
Upon adoption of MFRS 15, the timing of revenue recognition might be different as compared
with the current practices. The adoption of MFRS 15 will result in a change in accounting policy.
MFRS 9 replaces the guidance in MFRS 139, Financial Instruments: Recognition and Measurement
on the classification and measurement of financial assets.
Upon adoption of MFRS 9, financial assets will be measured at either fair value or amortised
cost. It is expected that the Group’s investment in unquoted shares will be measured at fair
value through other comprehensive income. The adoption of MFRS 9 will result in a change in
accounting policy.
MFRS 16 replaces existing leases guidance in MFRS 117, Leases, IC Interpretation 4, Determining
whether an Arrangement contains a Lease, IC Interpretation 115, Operating Leases - Incentives
and IC Interpretation 127, Evaluating the Substance of Transactions Involving the Legal Form of
a Lease.
Under MFRS 16, a lease is a contract (or part of a contract) that conveys the right to control the
use of an identified asset for a period of time in exchange for consideration.
MFRS 16 requires the lessee to recognise a ‘right-of-use’ of the underlying asset and a lease
liability reflecting future lease payments for most leases, eliminating the classification of leases by
the lessee as either finance lease (on balance sheet) or operating leases (off balance sheet).
The Group is currently assessing the financial impact that may arise from the migration to MFRS,
including the adoption of MFRS 1, MFRS 9, MFRS 15, and MFRS 16.
The financial statements have been prepared on the historical cost basis, other than as disclosed in
Note 2.
These financial statements are presented in Ringgit Malaysia (RM), which is the Company’s functional
currency.
The preparation of the financial statements in conformity with FRSs requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
affected thereby.
There are no significant areas of estimation uncertainty and critical judgements in applying accounting
policies that have significant effect on the amounts recognised in the financial statements other than
those disclosed in the following notes:
(i) Profit recognition from installation and construction of wastewater, and water treatment systems
The Group recognises contract revenue and contract costs from the installation and construction
of wastewater and water treatment specialised systems in profit or loss in proportion to the stage
of completion of the transactions, measured by reference to survey of work performed.
The Group recognises contract revenue and contract costs from the construction of
telecommunication towers in profit or loss using the stage of completion method, determined
by reference to the physical proportion of the contract work completed.
In making such estimations and judgements, the Group relies on, inter alia, past experiences and
the assessment of its experienced project teams.
The Group recognises property development revenue and costs in profit or loss using the stage
of completion method. The stage of completion of properties sold is determined by reference
to the proportion that property development costs incurred for work performed to-date bear to
the estimated total property development costs.
In making such judgements, the Group relies on, inter alia, on past experiences and the
assessment of its experienced project team.
Subsidiaries are entities, including structured entities, controlled by the Company. The financial
statements of subsidiaries are included in the consolidated financial statements from the date
that control commences until the date that control ceases.
The Group controls an entity when it is exposed, or has rights, to variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the
entity. Potential voting rights are considered when assessing control only when such rights are
substantive. The Group also considers it has de facto power over an investee when, despite not
having the majority of voting rights, it has the current ability to direct the activities of the investee
that significantly affect the investee’s return.
Business combinations are accounted for using the acquisition method from the acquisition
date, which is the date on which control is transferred to the Group.
For new acquisitions, the Group measures the cost of goodwill at the acquisition date as:
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
For each business combination, the Group elects whether it measures the non-controlling
interests in the acquiree either at fair value or at the proportionate share of the acquiree’s
identifiable net assets at the acquisition date.
Transaction costs, other than those associated with the issue of debt or equity securities, that the
Group incurs in connection with a business combination are expensed as incurred.
The Group accounts for all changes in its ownership interest in a subsidiary that do not result in a
loss of control as equity transactions between the Group and its non-controlling interest holders.
Any difference between the Group’s share of net assets before and after the change, and any
consideration received or paid, is adjusted to or against Group reserves.
Business combinations arising from transfers of interests in entities that are under the control of
the shareholder that controls the Group are accounted for as if the acquisition had occurred at
the beginning of the earliest comparative period presented or, if later, at the date that common
control was established; for this purpose, comparatives are restated.
The assets and liabilities acquired are recognised at the carrying amounts recognised previously
in the Group controlling shareholder’s consolidated financial statements. The components of
equity of the acquired entities are added to the same components within Group equity and any
resulting gain/loss is recognised directly in equity.
Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities of the
former subsidiary, any non-controlling interests and the other components of equity related to
the former subsidiary from the consolidated statement of financial position. Any surplus or deficit
arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the
former subsidiary, then such interest is measured at fair value at the date that control is lost.
Subsequently it is accounted for as an equity-accounted investee or as an available-for-sale
financial asset depending on the level of influence retained.
(vi) Associates
Associates are entities, including unincorporated entities, in which the Group has significant
influence, but not control, over the financial and operating policies.
Investments in associates are accounted for in the consolidated financial statements using the
equity method less any impairment losses, unless it is classified as held for sale or distribution. The
cost of the investment includes transaction costs. The consolidated financial statements include
the Group’s share of the profit or loss and other comprehensive income of the associates, after
adjustments if any, to align the accounting policies with those of the Group, from the date that
significant influence commences until the date that significant influence ceases.
When the Group’s share of losses exceeds its interest in an associate, the carrying amount of
that interest including any long-term investments is reduced to zero, and the recognition of
further losses is discontinued except to the extent that the Group has an obligation or has made
payments on behalf of the associate.
When the Group ceases to have significant influence over an associate, any retained interest
in the former associate at the date when significant influence is lost is measured at fair value
and this amount is regarded as the initial carrying amount of a financial asset. The difference
between the fair value of any retained interest plus proceeds from the interest disposed of
and the carrying amount of the investment at the date when equity method is discontinued is
recognised in profit or loss.
When the Group’s interest in an associate decreases but does not result in a loss of significant
influence, any retained interest is not remeasured. Any gain or loss arising from the decrease
in interest is recognised in profit or loss. Any gains or losses previously recognised in other
comprehensive income are also reclassified proportionately to profit or loss if that gain or loss
would be required to be reclassified to profit or loss on the disposal of the related assets or
liabilities.
Investments in associates are measured in the Company’s statement of financial position at cost
less any impairment losses, unless the investment is classified as held for sale or distribution. The
cost of the investment includes transaction costs.
Non-controlling interests at the end of the reporting period, being the equity in a subsidiary not
attributable directly or indirectly to the equity holders of the Company, are presented in the
consolidated statement of financial position and statement of changes in equity within equity,
separately from equity attributable to the owners of the Company. Non-controlling interests in
the results of the Group is presented in the consolidated statement of profit or loss and other
comprehensive income as an allocation of the profit or loss and the comprehensive income for
the financial year between non-controlling interests and owners of the Company.
Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-
controlling interests even if doing so causes the non-controlling interests to have a deficit
balance.
Intra-group balances and transactions, and any unrealised income and expenses arising from
intra-group transactions, are eliminated in preparing the consolidated financial statements.
Transactions in foreign currencies are translated to the respective functional currencies of Group
entities at the exchange rates at dates of transactions.
Monetary assets and liabilities denominated in foreign currencies at the end of a reporting
period (reporting date) are retranslated to the functional currency at the exchange rates at
that date.
Non-monetary assets and liabilities denominated in foreign currencies are not retranslated at the
reporting date, except for those measured at fair values which are retranslated to the functional
currency at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognised in profit or loss, except for
differences arising from the retranslation of available-for-sale equity instruments or a financial
instrument designated as a hedge of currency risk, which are recognised in other comprehensive
income.
In the consolidated financial statements, when settlement of a monetary item receivable from
or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign
exchange gains and losses arising from such a monetary item are considered to form part of a
net investment in a foreign operation and are recognised in other comprehensive income, and
are presented in the foreign currency translation reserve (“FCTR”) in equity.
(ii) Operations denominated in functional currencies other than Ringgit Malaysia (“RM”)
The assets and liabilities of operations denominated in functional currencies other than RM,
including goodwill and fair value adjustments arising on acquisition, are translated to RM
at exchange rates at the end of the reporting period. The income and expenses of foreign
operations are translated to RM at exchange rates at the dates of the transactions.
Foreign currency differences are recognised in other comprehensive income and accumulated
in the FCTR in equity. However, if the operation is a non-wholly owned subsidiary, then the
relevant proportionate share of the translation difference is allocated to the non-controlling
interests. When a foreign operation is disposed of such that control, significant influence or joint
control is lost, the cumulative amount in the FCTR related to that foreign operation is reclassified
to profit or loss as part of the gain or loss on disposal.
When the Group disposes of only part of its interest in a subsidiary that includes a foreign
operation, the relevant proportion of the cumulative amount is reattributed to non-controlling
interests. When the Group disposes of only part of its investment in an associate that includes a
foreign operation while retaining significant influence, the relevant proportion of the cumulative
amount is reclassified to profit or loss.
A financial asset or a financial liability is recognised in the statement of financial position when,
and only when, the Group or the Company becomes a party to the contractual provisions of
the instrument.
A financial instrument is recognised initially, at its fair value plus, in the case of a financial
instrument not at fair value through profit or loss, transaction costs that are directly attributable
to the acquisition or issue of the financial instrument.
An embedded derivative is recognised separately from the host contract and accounted for
as a derivative if, and only if, it is not closely related to the economic characteristics and risks of
the host contract and the host contract is not categorised at fair value through profit or loss. The
host contract, in the event an embedded derivative is recognised separately, is accounted for
in accordance with the policy applicable to the nature of the host contract.
Financial assets
Fair value through profit or loss category comprises financial assets that are held for trading,
including derivatives (except for a derivative that is a financial guarantee contract or
a designated and effective hedging instrument) or financial assets that are specifically
designated into this category upon initial recognition.
Derivatives that are linked to and must be settled by delivery of unquoted equity instruments
whose fair values cannot be reliably measured are measured at cost.
Other financial assets categorised as fair value through profit or loss are subsequently
measured at their fair values with the gain or loss recognised in profit or loss.
Loans and receivables category comprises debt instruments that are not quoted in an
active market.
Investments in equity instruments that do not have a quoted market price in an active
market and whose fair value cannot be reliably measured are measured at cost. Other
financial assets categorised as available-for-sale are subsequently measured at their
fair values with the gain or loss recognised in other comprehensive income, except for
impairment losses, foreign exchange gains and losses arising from monetary items and
gains and losses of hedged items attributable to hedge risks of fair value hedges which
are recognised in profit or loss. On derecognition, the cumulative gain or loss recognised in
other comprehensive income is reclassified from equity into profit or loss. Interest calculated
for a debt instrument using the effective interest method is recognised in profit or loss.
All financial assets, except for those measured at fair value through profit or loss, are subject to
review for impairment [see Note 2(l)(i)].
Financial liabilities
All financial liabilities, are subsequently measured at amortised cost other than those categorised
as fair value through profit or loss.
Fair value through profit or loss category comprises financial liabilities that are derivatives (except
for a derivative that is a financial guarantee contract or a designated and effective hedging
instrument) or financial liabilities that are specifically designated into this category upon initial
recognition.
Derivatives that are linked to and must be settled by delivery of equity instruments that do not
have a quoted price in an active market for identical instruments whose fair values otherwise
cannot be reliably measured are measured at cost.
Other financial liabilities categorised as fair value through profit or loss are subsequently measured
at their fair values with the gain or loss recognised in profit or loss.
A financial guarantee contract is a contract that requires the issuer to make specified payments
to reimburse the holder for a loss it incurs because a specified debtor fails to make payment
when due in accordance with the original or modified terms of a debt instrument.
Fair value arising from financial guarantee contracts are classified as deferred income and is
amortised to profit or loss using a straight-line method over the contractual period or, when there
is no specified contractual period, recognised in profit or loss upon discharge of the guarantee.
When settlement of a financial guarantee contract becomes probable, an estimate of the
obligation is made. If the carrying value of the financial guarantee contract is lower than the
obligation, the carrying value is adjusted to the obligation amount and accounted for as a
provision.
A regular way purchase or sale of financial assets is a purchase or sale of a financial asset under
a contract whose terms require delivery of the asset within the time frame established generally
by regulation or convention in the marketplace concerned.
A regular way purchase or sale of financial assets is recognised and derecognised, as applicable,
using trade date accounting. Trade date accounting refers to:
(a) the recognition of an asset to be received and the liability to pay for it on the trade date;
and
(b) the derecognition of an asset that is sold, the recognition of any gain or loss on disposal
and the recognition of a receivable from the buyer for payment on the trade date.
(v) Derecognition
A financial asset or a part thereof is derecognised when, and only when the contractual rights to
the cash flows from the financial asset expire or control of the asset is not retained or substantially
all of the risks and rewards of ownership of the financial asset are transferred to another party.
On derecognition of a financial asset, the difference between the carrying amount and the sum
of the consideration received (including any new asset obtained less any new liability assumed)
and any cumulative gain or loss that had been recognised in equity is recognised in profit or loss.
A financial liability or a part thereof is derecognised when, and only when, the obligation
specified in the contract is discharged, cancelled or expired. On derecognition of a financial
liability, the difference between the carrying amount of the financial liability extinguished
or transferred to another party and the consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in profit or loss.
Items of property, plant and equipment are measured at cost/valuation less any accumulated
depreciation and any accumulated impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset and any
other costs directly attributable to bringing the asset to working condition for its intended use,
and the costs of dismantling and removing the items and restoring the site on which they are
located. The cost of self-constructed assets also includes the cost of materials and direct labour.
For qualifying assets, borrowing costs are capitalised in accordance with the accounting policy
on borrowing costs.
Purchased software that is integral to the functionality of the related equipment is capitalised as
part of that equipment.
The cost of property, plant and equipment recognised as a result of a business combination
other than that involving a common control transaction is based on fair value at acquisition
date.
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.
The gain or loss on disposal of an item of property, plant and equipment is determined by
comparing the proceeds from disposal with the carrying amount of the property, plant and
equipment and is recognised net within “other income” or “other expenses” respectively in profit
or loss.
The Group revalues its properties comprising freehold land, leasehold land (other than prepaid
lease payments) and buildings using the open market value method every five (5) years and at
shorter intervals whenever the fair value of the revalued assets is expected to differ materially
from their carrying value. Any additions during the financial year of revaluation are stated at
cost.
Surpluses arising from revaluation are dealt with in the revaluation reserve account. Any deficit
arising is offset against the revaluation reserve to the extent of a previous increase for the same
property. In all other cases, a decrease in carrying amount is recognised in profit or loss. When
revalued assets are sold, the amounts included in the revaluation surplus reserve are transferred
to retained earnings.
The cost of replacing a component 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 component will flow to the Group or the Company, and its cost can be measured
reliably. The carrying amount of the replaced component is derecognised to profit or loss. The
costs of the day-to-day servicing of property, plant and equipment are recognised in profit or
loss as incurred.
(iii) Depreciation
Depreciation is based on the cost of an asset less its residual value, if any. Significant components
of individual assets are assessed, and if a component has a useful life that is different from the
remainder of that asset, then that component are depreciated separately.
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful life
of each component of an item of property, plant and equipment from the date that they are
available for use. Leased assets are depreciated over the shorter of the lease term and their
useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the
lease term. Freehold land is not depreciated. Assets under construction are not depreciated
until the assets are ready for their intended use.
The estimated useful lives of the assets for the current and comparative periods are as follows:
Depreciation methods, useful lives and residual values are reviewed and adjusted as appropriate
at the end of the reporting period.
Leases in terms of which the Group or the Company assumes substantially all the risks and rewards
of ownership are classified as finance leases. Upon initial recognition, a leased asset is measured
at an amount equal to the lower of its fair value and the present value of the minimum lease
payments. Subsequent to initial recognition, the asset is accounted for in accordance with the
accounting policy applicable to that asset [see Note 2(d)].
Minimum lease payments made under finance leases are apportioned between the finance
expense and the reduction of the outstanding liability. The finance expense is allocated to
each period during the lease term so as to produce a constant periodic rate of interest on the
remaining balance of the liability. Contingent lease payments are accounted for by revising the
minimum lease payments over the remaining term of the lease when the lease adjustment is
confirmed.
Leasehold land which in substance is a finance lease is classified as property, plant and
equipment.
Leases, where the Group or the Company does not assume substantially all the risks and rewards
of ownership are classified as operating leases and the leased assets, other than prepaid lease
payments, are not recognised on the statement of financial position.
Payments made under operating leases are recognised in profit or loss on a straight-line basis
over the term of the lease. Lease incentives received are recognised in profit or loss as an integral
part of the total lease expense, over the term of the lease. Contingent rentals are charged to
profit or loss in the reporting period in which they are incurred.
Leasehold land which in substance is an operating lease is classified as prepaid lease payments.
(i) Goodwill
Goodwill arises on business combinations is measured at cost less any accumulated impairment
losses. In respect of equity-accounted associates and joint venture, the carrying amount of
goodwill is included in the carrying amount of the investment and an impairment loss on such
an investment is not allocated to any asset, including goodwill, that forms part of the carrying
amount of the equity-accounted associates or joint venture.
Other intangible assets, all with finite useful lives (see Note 8) are measured at cost less
accumulated amortisation and any accumulated impairment losses.
The gain or loss on disposal of an item of intangible assets is determined by comparing the
proceeds from disposal with the carrying amount thereof and is recognised net within “other
income” or “other expense” respectively in profit or loss.
(iv) Amortisation
Goodwill with indefinite useful lives is not amortised but is tested for impairment annually and
whenever there is an indication that it may be impaired.
Other intangible assets with finite useful lives are amortised from the date that they are available
for use.
Amortisation is based on the cost of an asset less its residual value. Amortisation is recognised in
profit or loss on a straight-line basis over the estimated useful lives of the assets, except that in
the case of the rights to share rental proceeds of telecommunication towers, it is based on the
estimated share of rental proceeds in a reporting period over the total estimated share of rental
proceeds over ten years.
Their estimated useful lives for the current and comparative periods are as follows:
Amortisation methods, useful lives and residual values are reviewed at the end of each reporting
period and adjusted if appropriate.
(g) Inventories
Inventories are measured at the lower of cost and net realisable value. Net realisable value is the
estimated selling price in the ordinary course of business, less the estimated costs of completion and
the estimated costs necessary to make the sale.
Cost of developed properties consists of costs associated with the acquisition of land, direct
costs and appropriate proportions of common costs attributable to developing the properties
to completion.
The cost of raw materials, consumables and construction materials are measured on the first-in
first-out basis while that of manufactured/trading inventories, the weighted average costs basis.
The cost of inventories includes expenditure incurred in acquiring the inventories, production
or conversion costs and other costs incurred in bringing them to their existing location and
condition. In the case of work-in-progress and manufactured inventories, cost includes an
appropriate share of production overheads based on normal operating capacity.
Property development costs comprise costs associated with the acquisition of land and all costs that
are directly attributable to development activities or that can be allocated on a reasonable basis to
such activities.
Property development costs not recognised as an expense are recognised as an asset and are stated
at the lower of costs and net realisable value.
The excess of revenue recognised in profit or loss over billings to purchasers is shown as accrued
billings under trade and other receivables while the excess of billings to purchasers over revenue
recognised in profit or loss is shown as progress billings under trade and other payables.
Construction work-in-progress represents the gross unbilled amount expected to be collected from
customers for contract work performed to date. It is measured at cost plus profit recognised to date
less progress billings and recognised losses. Cost includes all expenditures related directly to specific
projects and an allocation of fixed and variable overheads incurred in the Group’s construction
activities based on normal operating capacity.
Construction work-in-progress is presented as part of trade and other receivables as amount due from
contract customers in the statement of financial position for all contracts in which costs incurred plus
recognised profits exceed progress billings. If progress billings exceed costs incurred plus recognised
profits, then the difference is presented as part of trade and other payables as amount due to
contract customers in the statements of financial position.
Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly
liquid investments which have an insignificant risk of changes in fair value with original maturities of
three months or less and are used by the Group and the Company in the management of their short-
term commitments. For the purpose of the statements of cash flows, cash and cash equivalents are
presented net of bank overdrafts and pledged deposits.
Non-current assets, or disposal group comprising assets and liabilities that are expected to be
recovered primarily through sale rather than through continuing use, are classified as held for sale.
Immediately before classification as held for sale, the assets, or components of a disposal group, are
remeasured in accordance with the Group’s accounting policies. Thereafter generally the assets,
or disposal group, are measured at the lower of their carrying amount and fair value less costs of
disposal.
Any impairment loss on a disposal group is first allocated to goodwill, and then to remaining assets
and liabilities on pro rata basis, except that no loss is allocated to inventories, financial assets, deferred
tax assets, employee benefit assets and investment property, which continue to be measured in
accordance with the Group’s accounting policies. Impairment losses on initial classification as held
for sale and subsequent gains or losses on remeasurement are recognised in profit or loss. Gains are
not recognised in excess of any cumulative impairment loss.
Intangible assets and property, plant and equipment once classified as held for sale are not amortised
or depreciated.
(l) Impairment
All financial assets (except for financial assets categorised as fair value through profit or loss,
investment in subsidiaries and investment in associate) are assessed at each reporting date
whether there is any objective evidence of impairment as a result of one or more events having
an impact on the estimated future cash flows of the asset. Losses expected as a result of future
events, no matter how likely, are not recognised. For an investment in an equity instrument,
a significant or prolonged decline in the fair value below its cost is an objective evidence of
impairment. If any such objective evidence exists, then the financial asset’s recoverable amount
is estimated.
An impairment loss in respect of unquoted equity instrument that is carried at cost is recognised
in profit or loss and 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.
An impairment loss recognised in profit or loss for an investment in an equity instrument classified
as available-for-sale is not reversed through profit or loss.
If, in a subsequent period, the fair value of a debt instrument increases and the increase can
be objectively related to an event occurring after the impairment loss was recognised in profit
or loss, the impairment loss is reversed, to the extent that the asset’s carrying amount does not
exceed what the carrying amount would have been had the impairment not been recognised
at the date the impairment is reversed. The amount of the reversal is recognised in profit or loss.
The carrying amounts of other assets (except for inventories, amount due from contract
customers, deferred tax assets and non-current assets held for sale) 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 asset’s recoverable amount is estimated. For goodwill and intangible
assets that have indefinite useful lives or that are not yet available for use, the recoverable
amount is estimated each period at the same time.
For the purpose of impairment testing, assets are grouped together into the smallest group of
assets that generates cash inflows from continuing use that are largely independent of the cash
inflows of other assets or cash-generating units. Subject to an operating segment ceiling test, for
the purpose of goodwill impairment testing, cash-generating units to which goodwill has been
allocated are aggregated so that the level at which impairment testing is performed reflects
the lowest level at which goodwill is monitored for internal reporting purpose. The goodwill
acquired in a business combination, for the purpose of impairment testing, is allocated to a
cash-generating unit or a group of cash-generating units that are expected to benefit from the
synergies of the combination.
The recoverable amount of an asset or cash-generating unit is the greater of its value-in-use
and its fair value less costs of disposal. 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 or cash-generating
unit.
An impairment loss is recognised if the carrying amount of an asset or its related cash-generating
unit exceeds its estimated recoverable amount.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of
cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated
to the cash-generating unit (group of cash-generating units) and then to reduce the carrying
amount of the other assets in the cash-generating unit (groups of cash-generating units) on a
pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment
losses recognised in prior periods are assessed at the end of each reporting period for any
indications that the loss has decreased or no longer exists. An impairment loss is reversed if there
has been a change in the estimates used to determine the recoverable amount since the last
impairment loss was recognised. An impairment loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount that would have been determined,
net of depreciation or amortisation, if no impairment loss had been recognised. Reversals of
impairment losses are credited to profit or loss in the financial year in which the reversals are
recognised.
Instruments classified as equity are measured at cost on initial recognition and are not remeasured
subsequently.
Costs directly attributable to the issue of instruments classified as equity are recognised as a
deduction from equity.
When share capital recognised as equity is repurchased, the amount of the consideration paid,
including directly attributable costs, net of any tax effects, is recognised as a deduction from
equity. Repurchased shares that are not subsequently cancelled are classified as treasury shares
in the statement of changes in equity.
(iii) Repurchase, disposal and reissue of share capital (treasury shares) (continued)
When treasury shares are distributed as share dividends, the cost of the treasury shares is applied
in the reduction of the share premium account or distributable reserves, or both.
Where treasury shares are sold or reissued subsequently, the differences between the sales
consideration net of directly attributable costs and the carrying amount of the treasury shares is
recognised in equity, and the resulting surplus or deficit on the transaction is presented in share
premium.
The Group measures a liability to distribute assets as a dividend to the owners of the Company at
the fair value of the assets to be distributed. The carrying amount of the dividend is remeasured
at each reporting period and at the settlement date, with any changes recognised directly in
equity as adjustments to the amount of the distribution. On settlement of the transaction, the
Group recognises the difference, if any, between the carrying amount of the assets distributed
and the carrying amount of the liability in profit or loss.
Short-term employee benefit obligations in respect of salaries and annual bonuses are measured
on an undiscounted basis and are expensed as the related service is provided.
A liability is recognised for the amount expected to be paid under short-term cash bonus or
profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount
as a result of past service provided by the employee and the obligation can be estimated
reliably.
The Group’s contributions to statutory pension funds are charged to profit or loss in the financial
year to which they relate. Prepaid contributions are recognised as an asset to the extent that a
cash refund or a reduction in future payments is available.
Revenue from the sale of goods in the course of ordinary activities is measured at fair value of
the consideration received or receivable, net of returns and allowances and trade discounts.
Revenue is recognised when persuasive evidence exists, usually in the form of an executed sales
agreement, that the significant risks and rewards of ownership have been transferred to the
customer, recovery of the consideration is probable, the associated costs and possible return
of goods can be estimated reliably, and there is no continuing management involvement with
the goods, and the amount of revenue can be measured reliably. If it is probable that discounts
will be granted and the amount can be measured reliably, then the discount is recognised as a
reduction of revenue as the sales are recognised.
Contract revenue includes the initial amount agreed in the contract plus any variations in
contract work, claims and incentive payments to the extent that it is probable that they will result
in revenue and can be measured reliably. As soon as the outcome of a construction contract
can be estimated reliably, contract revenue and expenses are recognised in profit or loss in
proportion to the stage of completion of the contract. Contract expenses are recognised as
incurred unless they create an asset related to future contract activity.
The stage of completion is assessed by reference to the physical proportion of the contract
work completed for telecommunication towers construction contracts and survey of work
performed for installation and construction of wastewater and water treatment specialised
system contracts.
When the outcome of a construction contract cannot be estimated reliably, contract revenue
is recognised only to the extent of contract costs incurred that are likely to be recoverable. An
expected loss on a contract is recognised immediately in profit or loss.
Revenue from property development activities is recognised based on the stage of completion
of properties sold measured by reference to the proportion that property development costs
incurred for work performed to-date bear to the estimated total property development costs.
Where the financial outcome of a property development activity cannot be reliably estimated,
property development revenue is recognised only to the extent of property development
costs incurred that is probable to be recoverable, and property development costs on the
development units sold are recognised as an expense in the period in which they are incurred.
Revenue from the provision of sludge treatment and disposal service is recognised in profit or loss
as it accrues, based on rates agreed with customers.
Revenue from the provision of stone extraction is recognised in profit or loss based on the quantity
of stone extracted at agreed rates.
Dividend income is recognised in profit or loss on the date that the Group’s or the Company’s right
to receive payment is established, which in the case of quoted securities is the ex-dividend date.
Share of rental proceeds with a network facility provider licence holder from the leasing of
telecommunication towers is recognised in profit or loss based on pre-determined ratios over
the term of the lease (see also Note 8.1).
Rental income from letting/hiring of assets is recognised in profit or loss on a straight-line basis
over the term of the lease.
Interest income is recognised in profit or loss as it accrues using the effective interest method
except for interest income arising from temporary investment of borrowings taken specifically
for the purpose of financing a qualifying asset which is accounted for in accordance with the
accounting policy on borrowing costs.
Borrowing costs that are not directly attributable to the acquisition, construction or production of a
qualifying asset are recognised in profit or loss using the effective interest method.
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.
The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when
expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are
necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of borrowing
costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying
asset for its intended use or sale are interrupted or completed.
Investment income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised
in profit or loss except to the extent that it relates to a business combination or items recognised
directly in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the financial
year, using tax rates enacted or substantively enacted by the end of the reporting period, and any
adjustment to tax payable in respect of previous financial years.
Deferred tax is recognised using the liability method, providing for temporary differences between
the carrying amounts of assets and liabilities in the statement of financial position and their tax bases.
Deferred tax is not recognised for the temporary differences arising from the initial recognition of
goodwill, the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss. Deferred tax is measured at the tax
rates that are expected to be applied to the temporary differences when they reverse, based on the
laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on
a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be
available against which the temporary differences can be utilised. Deferred tax assets are reviewed
at the end of each reporting period and are reduced by the extent that it is no longer probable that
the related tax benefit will be realised.
The Group presents basic and diluted earnings per share (“EPS”) data for its ordinary shares.
Basic EPS is calculated by dividing profit or loss attributable to ordinary shareholders of the Company
by the weighted average number of ordinary shares outstanding during the period, adjusted for own
shares held.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and
the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the
effects of all dilutive potential ordinary shares.
An operating segment is a component of the Group that engages in business activities from which it
may earn revenues and incur expenses, including revenues and expenses that relate to transactions
with any of the Group’s other components. Operating segments’ results are reviewed regularly by
the chief operating decision maker, which in this case is the Group Executive Chairman, to make
decisions about resources to be allocated to the segment and to assess its performance, and for
which discrete financial information is available.
Fair value of an asset or a liability, except for share-based payment and lease transactions, is
determined as the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The measurement
assumes that the transaction to sell the asset or transfer the liability takes place either in the principal
market or in the absence of a principal market, in the most advantageous market.
For non-financial asset, the fair value measurement takes into account a market participant’s ability
to generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.
When measuring the fair value of an asset or a liability, the Group uses observable market data as far
as possible. Fair value are categorised into different levels in a fair value hierarchy based on the input
used in the valuation technique as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group
can access at the measurement date.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
The Group recognises transfers between levels of the fair value hierarchy as of the date of the event
or change in circumstances that caused the transfers.
Freehold Leasehold O
land land
Group RM RM R
Cost/Valuation
Cost - 1,294,593
Directors’ valuation 13,785,000 31,228,598
At 1 April 2015
- Accumulated depreciation - 239,122
- Accumulated impairment losses - -
- 239,122
Depreciation for the financial year - 482,917
Disposals - -
Write-offs - -
Reclassifications - -
Effect of movements in exchange rates - -
Disposal of a subsidiary - -
Office
equipment,
Plant, machinery furniture
and moulds and fittings,
Outright Under equipment
Buildings purchase finance lease and tools Subtotal
RM RM RM RM RM
33,236,073 - - - 78,249,671
Freehold Leasehold O
land land
Group RM RM R
- 722,039
Depreciation for the financial year - 479,597
Disposals - -
Write-offs - -
Reclassifications - -
Effect of movements in exchange rates - -
Disposal of a subsidiary [Note 31(i)]:
- Accumulated depreciation - -
- Reversal on impairment losses - -
At 31 March 2017
- Accumulated depreciation - 1,201,636
- Accumulated impairment losses - -
- 1,201,636
Carrying amounts
Office
equipment,
Plant, machinery furniture
and moulds and fittings,
Outright Under equipment
Buildings purchase finance lease and tools Subtotal
RM RM RM RM RM
Motor vehicles
Under
Outright finance
Subtotal purchase lease
Group (continued) RM RM RM R
Cost/Valuation (continued)
At 1 April 2015 143,837,322 7,884,112 2,624,408
Acquisition of a subsidiary [Note 31(ii)] 6,000,000 - -
Additions 5,417,747 432,549 -
Disposals (1,491,556) (283,056) (457,488)
Write-offs (700,949) - -
Reclassifications 1,746,241 (38,632) 38,632
Cancellations (10,327) - -
Effect of movements
in exchange rates 97,285 11,240 -
Disposal of a subsidiary (10,837) - -
At 1 April 2015
- Accumulated depreciation 47,515,169 6,048,864 1,498,546
- Accumulated impairment losses 2,775,248 - -
Electrical
installation Other Assets
and Site infra- under Grand
renovation equipment structure construction total
RM RM RM RM RM
15,859 - - - 124,384
- - - - (10,837)
Motor vehicles
Under
Outright finance
Subtotal purchase lease
Group (continued) RM RM RM R
At 31 March 2017
- Accumulated depreciation 58,387,443 7,008,302 2,007,077
- Accumulated impairment losses - - -
Electrical
installation Other Assets
and Site infra- under Grand
renovation equipment structure construction total
RM RM RM RM RM
- - - - (1,154,060)
- - - - (2,775,248)
Cost
At 31 March 2016/
1 April 2016 2,575,788 446,834 845,794 1,028,205 4,896,621
Depreciation
Depreciation for
the financial year 211,077 121,860 96,399 27,964 457,300
Disposals (5,507) - - - (5,507)
Write-offs (100,461) - - - (100,461)
At 31 March 2016/
1 April 2016 2,288,921 404,561 353,841 970,284 4,017,607
Depreciation for
the financial year 159,624 42,273 174,485 27,965 404,347
Disposals (3,353) - - - (3,353)
Write-offs (17,176) - - - (17,176)
Carrying amounts
At 31 March 2016/
1 April 2016 286,867 42,273 491,953 57,921 879,014
Carrying amounts
2017 2016
Group RM RM
Leasehold land
Long term (unexpired lease term more than 50 years) 10,781,860 7,392,045
Short term (unexpired lease term less than 50 years) 20,539,695 20,909,107
31,321,555 28,301,152
The Group revalued its freehold land, leasehold land and buildings in January 2015. The revaluation
was performed by independent professional valuers using the comparison method. Consequently, a
revaluation surplus was recognised in other comprehensive income as follows:
Group
RM
15,734,213
Had the land and buildings been carried under the cost model, their carrying amounts, net of any
accumulated depreciation and accumulated impairment losses where applicable, that would have
been included in the financial statements at the end of the financial year are as follows:
Group
2017 2016
RM RM
26,219,831 26,842,411
3.3 Security
Included in the leasehold land and buildings of the Group are carrying amounts of RM3,524,172 and
RM3,757,688 respectively (2016: RM3,560,677 and RM3,831,368 respectively), which the titles have
been pledged as securities for banking facilities granted to a subsidiary. In addition, assets under
finance lease are charged to secure the finance lease liabilities of the Group and the Company (see
Note 19.2).
Group Company
2017 2016 2017 2016
RM RM RM RM
During the financial year under review, the Group has estimated whether the property, plant and
equipment are stated in excess of their recoverable amounts. The Group has evaluated the carrying
amounts of the property, plant and equipment by estimating their recoverable amounts using the
value in use calculation of the cash-generating units.
Following the assessment, no impairment loss was required as the estimated recoverable amounts are
higher than their carrying amounts.
In the financial year under review, the Group has reversed the impairment loss of RM2,775,248
previously provided from its reclaimed rubber operation, which was subsequently being disposed of
during the current financial year.
Leasehold
land
(Unexpired
term of less
than 50 years)
RM
Cost
At 1 April 2015, 31 March 2016/1 April 2016 and 31 March 2017 4,380,000
Amortisation
Carrying amounts
5. Investment in subsidiaries
Company
2017 2016
RM RM
58,980,222 56,460,222
In the previous financial years, the Company recognised impairment losses of RM717,869 based on the
estimated recoverable amounts of the investment in subsidiaries. The recoverable amounts are estimated
based on the fair value less costs of disposal with reference to the net tangible assets of the subsidiaries.
In the current financial year under review, the Company reassessed on similar bases and concluded no
further impairment to the investment in subsidiaries.
Details of the subsidiaries, all of which are incorporated in Malaysia except for Weida Philippines Inc. and
Weida (B) Sdn. Bhd., which were incorporated in the Philippines and Brunei Darussalam respectively, and
the Company’s interests therein are as follows:
Effective ownership
interest and
voting interest (%)
Subsidiary Principal activities 2017 2016
Weida Integrated Manufacture and sale of high density polyethylene 100.00 100.00
Industries Sdn. Bhd. engineering (“HDPE”) products
(“WII”)
Weida Resources Sdn. Trading of HDPE products, fittings and other 100.00 100.00
Bhd. engineering products and the provision of
specialised installation services for these
products as well as design, supply and installation,
commissioning and maintenance of sewerage
systems
Weida Marketing Sdn. Trading of HDPE products and the provision 100.00 100.00
Bhd. of specialised installation services for these
products
Weida Works Sdn. Bhd. Construction of water supply and other specialised 100.00 100.00
systems involving the use of HDPE products,
construction of other infrastructure, construction
of telecommunication towers and share of rental
proceeds from telecommunication towers
Effective ownership
interest and
voting interest (%)
Subsidiary Principal activities 2017 2016
Subsidiary of WGISB
Media Infra Sdn. Bhd. Manufacturing, marketing, sales and trading of - 100.00
(formerly known as reclaimed rubber and rubber related products
Weida Eco Rubber
Sdn. Bhd.)
Subsidiaries of WII
Subsidiary of WISB
Weida Philippines Inc. ^ Manufacture and sale of HDPE products 99.99 99.99
Subsidiaries of WPSB
Effective ownership
interest and
voting interest (%)
Subsidiary Principal activities 2017 2016
Subsidiaries of WET
Sar-Alam Indah Sdn. Bhd. Collection, provision of treatment and disposal 32.48 32.48
of sludge services
LIPP Biogas Designing and constructing waste treatment and 44.80 44.80
(Malaysia) Sdn. Bhd. biogas plants
Hydro Solutions Sdn. Bhd. Building, construction and installation of hydro 56.00 56.00
systems
Other
individually
immaterial
WET BPSB AASB subsidiaries Total
Group RM RM RM RM RM
2017
NCI percentage of
ownership/voting
interest 44% 49% 25%
Carrying amount of
NCI 13,068,639 (464,689) (995,994) 31,838 11,639,794
Profit/(Loss) allocated
to NCI 2,540,620 (270,980) (297,942) (5,680) 1,966,018
Other
individually
immaterial
WET BPSB AASB subsidiaries
Group (continued) RM RM RM RM
2017 (continued)
As at 31 March 2017
Non-current assets 701,161 3,330,667 - -
Current assets 24,018,154 2,521,077 129,179,449 162,087
Non-current liabilities (100) (888,990) - -
Current liabilities (3,422,741) (5,911,098) (133,163,427) (35,757)
Other
individually
immaterial
WET BPSB AASB subsidiaries Total
Group RM RM RM RM RM
2016
NCI percentage of
ownership/voting interest 44% 49% 25%
Carrying amount of NCI 10,528,021 (193,709) (698,052) 37,516 9,673,776
Profit/(Loss) allocated
to NCI 1,004,927 (645,062) (345,463) 77,853 92,255
Other
individually
immaterial
WET BPSB AASB subsidiaries
Group (continued) RM RM RM RM
2016 (continued)
As at 31 March 2016
Non-current assets 797,643 3,449,833 - -
Current assets 19,866,210 3,195,560 118,406,616 169,215
Non-current liabilities (10,300) (1,197,359) - -
Current liabilities (3,141,150) (5,843,358) (121,198,824) (29,191)
6. Investment in an associate
Group Company
2017 2016 2017 2016
RM RM RM RM
Effective ownership
interest and
voting interest (%)
Name of entity Nature of relationship 2017 2016
On 14 April 2016, the Company has subscribed for additional 1,176,000 ordinary shares in the associate. On
18 January 2017, the Company transferred its entire 49% equity interest in the associate to a wholly-owned
subsidiary, Weida Medic Development Sdn. Bhd. for total consideration of RM1,666,000.
The following table summarises the information of the Group’s associate, adjusted for any differences in
accounting policies and reconciles the information to the carrying amount of the Group’s interest in the
associate.
Asaljuru
Weida
Sdn. Bhd.
Group RM
2017
As at 31 March 2017
Non-current assets 11,972
Current assets 4,873,482
Current liabilities (2,108,886)
As at 31 March 2017
Group’s share of net assets 1,360,518
Asaljuru
Weida
Sdn. Bhd.
Group RM
2016
As at 31 March 2016
Current assets 3,425,020
Non-current liabilities (1,400,000)
Current liabilities (1,429,303)
As at 31 March 2016
Group’s share of net assets 291,902
7. Goodwill - Group
Cost
Amortisation
At 31 March 2017 - - -
Carrying amounts
For the purpose of impairment testing, goodwill is allocated to the cash-generating units (“CGUs”) acquired
at which the goodwill is monitored for internal management purposes.
The aggregate carrying amounts of goodwill allocated to the CGUs are as follows:
2017 2016
RM RM
341,313 341,313
No impairment testing is performed on goodwill as the Directors are of the opinion that the carrying amount
is immaterial to the Group financial statements.
Rights to
provide
Rights to sewerage
share rental services,
proceeds of treatment and
t elecommunication disposal of
towers sludge Total
RM RM RM
Cost
Amortisation
Carrying amounts
This arose from the construction of telecommunication towers for a network facility provider licence
holder (“NFPLH”) in prior years. As payment consideration for the construction works carried out,
the NFPLH and the Group share the rental proceeds from the leasing of the telecommunication
towers based on a pre-determined ratios for a period of ten years commencing from the month
when the rental proceeds were first received.
This arose from the concession granted to a subsidiary of the Group, which engaged in the
treatment and disposal of sludge from septic tanks on a 25 years contract.
The recoverable amount of the rights to share rental proceeds of telecommunication towers is
estimated using value-in-use calculations. These calculations use pre-tax cash flow projections
based on the cash flows expected from the continuing use of the intangible asset. The value-in-use
calculations were based on the following key assumptions:
a) Cash flows are projected based on the existing rental of towers payable by telecommunication
service providers based on available information.
b) The projections are for the ten-year tenure of the License Agreement entered into with the
licensed telecommunication service providers.
c) Pre-tax discount rate used to derive the projected cash flows is 10.00% (2016: 8.80%) per annum,
determined by reference to the weighted average cost of capital of the Group.
The values assigned to the key assumptions represent management’s assessment of future trends in
the industry and are based on historical data from both external sources and internal sources.
8.3 Impairment testing of rights to provide sewerage services, treatment and disposal of sludge
The recoverable amounts of the rights to provide sewerage services, treatment and disposal of sludge
was estimated using value-in-use calculations. These calculations use pre-tax cash flow projections
based on the financial budgets approved by management and cash flows expected from the
continuing use of the intangible asset. The value-in-use calculations were based on the following key
assumptions:
a) Services rendered are projected to remain at the same level as 2017. The rate of service charges
will be revised upwards by 10.00% once every five years in accordance with the service contracts.
c) The projections are for five financial years from 2018 to 2022 (2016: 2017 to 2021).
d) Pre-tax discount rate used to derive the projected cash flows is 10.00% (2016: 8.80%) per annum,
determined by reference to the weighted average cost of capital of the Group.
e) Collections from trade receivables and settlement of trade payables will be made in accordance
with the current credit arrangements and policies.
The values assigned to the key assumptions represent management’s assessment of future trends in
the industry and are based on historical data from both external sources and internal sources.
The above estimates are particularly sensitive to fluctuations in the rate of service charges and
operational costs. With a 5% and 10% variations in the projected service charges and operational
costs respectively, the projections show that the recoverable amount of intangible asset would still
exceed the carrying amount.
Group Company
2017 2016 2017 2016
RM RM RM RM
Non-current
Non-trade
- - 119,457,228 113,827,438
Current
Trade
82,362,799 82,966,621 - -
950,096 45,752,603 - -
Non-trade
Other receivables (Note 9.1) 23,592,122 5,841,377 16,371,235 7,258,393
Less: Allowance for impairment losses (1,373,332) (1,373,332) - -
- - 92,794,000 86,712,880
9.1 Included in the current balance of other receivables is an amount of RM3,659,917 (2016: non-current
balance and current balance of RM3,018,130 and RM2,000,000 respectively) due from a former
associate of the Group. The amount is secured by a first fixed and floating charge over the former
associate’s assets and bears fixed interest at 6.00% (2016: 6.00%) per annum. The amount is expected
to be repayable in full by December 2017.
Also, there is a stakeholder sum on property development amounting to RM15,586,890 (2016: Nil) held
by the Group’s solicitors included in the other receivables.
2017 2016
Group RM RM
(6,591,040) 3,391,201
Represented by:
Amount due from contract customers 950,096 5,063,270
Amount due to contract customers reclassified to
trade and other payables (Note 20) (7,541,136) (1,672,069)
(6,591,040) 3,391,201
2017 2016
Group RM RM
9.3 Amount due from subsidiaries of RM92,892,480 (2016: RM92,911,360) is unsecured, bears interest at
5.60% (2016: 5.40% - 5.60%) per annum and is repayable on demand. The non-current balance due
from subsidiaries is unsecured, bears interest at 8.00% (2016: 8.00%) per annum and is expected to be
payable in full by the day after the end of three (3) years.
9.4 The main collectability risk of trade receivables is insolvencies of the counterparties. Management
determines allowance for impairment loss on doubtful receivables based on an on-going review
and evaluation performed as part of its credit risk evaluation process. These include assessment of
customers’ past payment records, financial standing and the age of receivables. The evaluation is
however inherently judgemental and requires material estimates, including the amounts and timing
of future cash flows expected to be received, which may be susceptible to significant changes.
Group Company
2017 2016 2017 2016
RM RM RM RM
Non-current
Available-for-sale financial assets
- quoted shares in Malaysia 3,256 3,422 3,256 3,422
- unquoted shares - 225,000 - -
Representing items:
- At cost/amortised cost - 225,000 - -
It was not practicable to estimate the fair value of the Group’s investment in unquoted shares of RM225,000
subsisting at 31 March 2016, due to lack of comparable quoted market prices. As a result, this available-for-
sale financial asset was measured at cost. The investment in unquoted shares was disposed of during the
year for cash consideration of RM1,267,500.
Company
Company
The recognition of deferred tax assets of the Group is based on profit projections for the financial years from
2018 to 2027 of the affected entities. The profit projections represent management’s assessment of future
trends in the industry and are based on historical data from both external sources and internal sources.
Deferred tax assets of RM7,478,000 (2016: RM8,182,000) and RM2,060,000 (2016: RM2,047,000) of the
Group and of the Company respectively have not been recognised in respect of the following temporary
differences because it is not certain if future taxable profits of sufficient quantum will be available against
which the affected group entities can utilise the benefits therefrom:
Group Company
2017 2016 2017 2016
RM RM RM RM
Unabsorbed capital allowances carried forward and unutilised tax losses carried forward of group entities
incorporated in Malaysia amounting to RM30,941,000 (2016: RM33,700,000) do not expire under the current
Malaysian tax legislation except that in the case of a dormant company, such allowances and losses
will not be available to the company if there is a substantial change of 50% or more in the shareholdings
thereof.
2017 2016
RM RM
At cost:
Raw materials and consumables 23,805,562 20,407,751
Manufactured and trading inventories 20,887,715 22,382,947
Developed properties held for sale 24,368,387 -
69,061,664 42,790,698
RM
At 1 April 2015
122,503,800
Accumulated costs charged to profit or loss (46,808,015)
75,695,785
Additions
169,271,830
RM
291,775,630
Accumulated costs charged to profit or loss (115,126,727)
176,648,903
Additions
42,677,761
(60,463,206)
At 31 March 2017
334,453,391
Accumulated costs charged to profit or loss (153,906,296)
Accumulated transfer of completed properties to inventories (21,683,637)
158,863,458
Security
Land use rights related to third party land are pledged as security for the banking facilities granted to the
Group (see Note 19.2).
2017 2016
RM RM
Group Company
2017 2016 2017 2016
RM RM RM RM
Included in deposits of the Group is an amount of RM387,673 (2016: RM1,282,216) paid for the purchases of
construction materials, machinery and equipment and deposits paid for the purchase of property, plant
and equipment amounted to RM4,234,152 (2016: Nil).
2017 2016
Assets Liabilities Assets Liabilities
RM RM RM RM
Nominal value of the outstanding forward foreign exchange contracts as at 31 March 2017 is RM5,211,065
(2016: RM4,903,049).
Forward foreign exchange contracts are used to manage the foreign currency exposures arising from
the Group’s receivables and payables denominated in currencies other than the functional currencies of
group entities. Most of the forward foreign exchange contracts have maturities of less than one year after
the end of the reporting period. Where necessary, the forward foreign exchange contracts are rolled over
at maturity.
Group Company
2017 2016 2017 2016
RM RM RM RM
Deposits of RM2,053,825 (2016: RM2,009,517) are charged to licensed banks as security for banking facilities
granted to certain subsidiaries (see Note 19.2).
Included in cash in hand and at banks of the Group is an amount of RM28,550,315 (2016: RM2,817,568)
held under a housing development account in pursuant to Section 7A of the Housing Development
(Control and Licensing) Act, 1966, comprises monies received from purchasers for the payment of property
development expenditure incurred and are restricted from use in other operations. The surplus monies, if
any, will be released to the Group upon the completion of the property development projects and after
all property development expenditure have been fully settled.
In the last financial year ended 31 March 2016, a subsidiary of the Group entered into a settlement
agreement with two (2) of its customers. Pursuant to the settlement agreement, the debts owing to the
subsidiary by the two (2) customers was settled by way of set-off against a residential property, which the
customers are joint beneficial owners. The Group is committed to a plan to sell the said property and had
appointed an estate agent to secure a purchaser.
Ordinary shares
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are
entitled to one vote per share at meetings of the Company.
The new Companies Act 2016, which came into operation on 31 January 2017, abolished the concept
of authorised share capital and par value of share capital. There is no impact on the number of
ordinary shares in issue or the relative entitlement of any of the members as a result of this transition.
18.2 Reserves
Group Company
2017 2016 2017 2016
RM RM RM RM
Movements in each category of reserves are disclosed in the statements of changes in equity.
The translation reserve comprises all foreign currency differences arising from the translation of the
financial statements of the group entities with functional currencies other than RM.
Treasury shares
Shareholders of the Company, at the Annual General Meeting held on 26 August 2016, renewed
the mandate for the Company to repurchase its own shares to be retained as treasury shares. The
Directors of the Company are committed to enhancing the value of the Company to its shareholders
and believe that the repurchase plan can be applied in the best interests of the Company and its
shareholders.
During the current financial year, the Company purchased 200 units (2016: 200 units) of its issued share
capital from the open market using internal generated funds. The average price paid for the shares
repurchased was RM1.68 (2016: RM1.73) per ordinary share. The total consideration paid was RM423
(2016: RM432) including transaction costs of RM87 (2016: RM87).
The total number of shares repurchased as at 31 March 2017 is 6,439,100 (2016: 6,438,900).
The fair value reserve comprises the cumulative net change in the fair value of financial assets
categorised as available-for-sale until the assets are derecognised or impaired.
Revaluation reserve
Revaluation reserve (net of deferred tax liability recognised) represents non-distributable surplus
arising from the revaluation of freehold and leasehold land and buildings (see Note 3.2).
Group Company
2017 2016 2017 2016
RM RM RM RM
Non-current
Finance lease liabilities 1,899,856 3,128,880 192,827 295,417
Term loans
- Unsecured 8,928,570 16,071,428 8,928,571 16,071,428
- Secured 8,397,745 27,281,962 - -
Current
Finance lease liabilities 1,057,171 1,315,410 102,590 135,452
Unsecured bankers’ acceptances 24,769,000 27,388,000 - -
Term loans
- Unsecured 7,142,857 7,142,857 7,142,857 7,142,857
- Secured 18,770,448 193,714 - -
Revolving credit 1,000,000 5,000,000 - -
2017 2016
Present Present
Future value of Future value of
minimum minimum minimum minimum
lease lease lease lease
payments Interest payments payments Interest payments
Group RM RM RM RM RM RM
Less than one year 1,189,726 132,555 1,057,171 1,519,904 204,494 1,315,410
Between one and five years 2,024,690 124,834 1,899,856 2,753,232 228,501 2,524,731
More than five years - - - 632,476 28,327 604,149
Company
Less than one year 113,525 10,935 102,590 152,328 16,876 135,452
Between one and five years 209,877 17,050 192,827 277,829 27,118 250,711
More than five years - - - 45,573 867 44,706
19.2 Security
Company
The Group and the Company are required to maintain the gearing ratio of not exceeding 1.50 times
throughout the tenure of the unsecured term loan.
Subsidiaries
A secured term loan of another subsidiary, which is part of the credit facilities obtained thereby,
covered by way of:
Subsidiaries (continued)
Secured term loan No. 2
A secured term loan of a subsidiary, which is part of the credit facilities obtained thereby, is covered
by way of:
A secured term loan of a subsidiary, which is part of the credit facilities obtained thereby, is covered
by way of:
a) Deed of Assignment assigning all the rights and title. Instructs and benefits under the Sale and
Purchase Agreement in respect of the Property;
b) a private caveat on the Master Title pending issuance of the individual subdivided/strata title;
c) a registered open all monies 1st party charge over the subject property upon issuance of
individual/strata title; and
d) corporate guarantee from the Company.
A secured term loan of a subsidiary, which is part of the credit facilities obtained thereby is covered
by way of:
The banking facilities comprising multi-trade facilities, revolving credit, contract financing lines,
general working capital facilities and term financing granted to a subsidiary are secured by way of:
Other banking facilities granted to other subsidiaries are principally guaranteed by the Company and
negative pledge over their present and future assets.
The finance lease liabilities are secured on the respective finance lease assets of the Group and of the
Company. Outstanding finance lease liabilities of RM2,471,648 (2016: RM3,658,240) granted to certain
subsidiaries are guaranteed by the Company.
Group Company
2017 2016 2017 2016
RM RM RM RM
Trade
Trade payables (Note 20.1) 26,904,157 35,809,757 - -
Amount due to contract customers
(Note 9.2) 7,541,136 1,672,069 - -
Accrued expenses 13,794,422 6,065,888 - -
48,239,715 43,547,714 - -
Non trade
Subsidiaries (Note 20.2) - - 43,912,047 42,304,235
Advance payments from contract customers - 42,000 - -
Accrued expenses 21,061,443 21,242,183 2,406,713 3,376,582
Other payables 3,768,596 13,755,198 43,799 280,981
GST payables 1,201,297 655,886 43,331 242,671
Land owners’ entitlement (Note 20.3) 4,638,094 7,263,855 - -
20.1 Trade payables of the Group include retention sums of RM710,462 (2016: RM3,457,888).
20.2 Amount due to subsidiaries is unsecured, bears interest at 5.60% (2016: 5.40% - 5.60%) per annum
and repayable on demand.
20.3(a) The Group through its subsidiary, AASB had entered into a joint development agreement (“JDA
A”) with a third party (“the Land Owner A”) on 3 October 2015 to develop two parcels of leasehold
land (the project is hereinafter referred to as “the Proposed Development A” and the land, as
“the Project Land A”).
Through the JDA A, Land Owner A shall contribute the Project Land A for the Proposed Development
A and AASB shall undertake the Proposed Development A pursuant to and in accordance with
the provisions of the JDA A. AASB shall be responsible for the entire costs and expenses of the
Proposed Development A and shall make available all the necessary finances in respect thereof.
Pursuant to the JDA A, Land Owner A shall be entitled to 9% of the gross development value
(“GDV”) of the Proposed Development A or a minimum entitlement of RM107,000,000, whichever
is higher.
20.3 (b) The Group through its subsidiary, LPSB, had entered into a joint venture agreement (“JDA B”) with
Land Owner B on 20 December 2011 to develop the Project Land B (the project is hereinafter
referred to as “the Development B”).
Through the JDA B, Land Owner B shall contribute the Project Land B for the Development B and
LPSB shall undertake the Development B pursuant to and in accordance with the provisions of the
JDA B. LPSB shall be responsible for the entire costs and expenses of the Development B and shall
make available all the necessary finances in respect thereof.
Pursuant to JDA B, Land Owner B shall be entitled to a fixed amount of RM32,989,394. A portion of
the Land Owner B’s entitlement had been deducted against the payments on behalf made by
LPSB.
20.3 (c) The Group through its another subsidiary, GASB, had also entered into a joint venture agreement
(“JDA C”) with Land Owner C on 30 January 2015 to develop the Project Land C (the project is
hereinafter referred to as “the Proposed Development C”).
Through the JDA C, Land Owner C shall contribute the Project Land C for the Proposed
Development C and GASB shall undertake the Proposed Development C pursuant to and in
accordance with the provisions of the JDA C. GASB shall be responsible for the entire costs and
expenses of the Proposed Development C and shall make available all the necessary finances in
respect thereof.
Pursuant to the JDA C, Land Owner C shall be entitled to 15% of the GDV of the Proposed
Development C or a minimum entitlement of RM32,000,000, whichever is higher. A portion of
the Land Owner C’s entitlement had been deducted against the payments on behalf made
by GASB. The entitlement payable recognised is an estimate and is subject to the finalisation of
the GDV of the Proposed Development C. As at the reporting date, the entitlement is estimated
based on the market value of the land determined by an independent professional valuer.
21. Revenue
Group Company
2017 2016 2017 2016
RM RM RM RM
Group Company
2017 2016 2017 2016
RM RM RM RM
Group Company
2017 2016 2017 2016
RM RM RM RM
Group Company
2017 2016 2017 2016
RM RM RM RM
Group Company
2017 2016 2017 2016
RM RM RM RM
Group Company
2017 2016 2017 2016
RM RM RM RM
Group Company
2017 2016 2017 2016
RM RM RM RM
Other key management personnel comprise persons, other than the Directors, having authority and
responsibility for planning, directing and controlling the activities of the Group either directly or indirectly.
Group Company
2017 2016 2017 2016
RM RM RM RM
Malaysian
- current year 9,953,400 13,273,794 765,000 -
- prior years 302,624 1,195,986 6,813 (10,273)
Foreign
- current year 635,686 108,963 - -
Income tax calculated using Malaysian
tax rate of 24% (2016:24%) 8,242,000 10,196,000 5,740,000 2,202,000
Effect of different tax rates in foreign
jurisdictions 96,686 (206,037) - -
Non-taxable income (258,757) (494,000) (3,139,000) (575,000)
Non-deductible expenses 6,567,498 3,001,060 - -
Movements in unrecognised deferred
tax assets (704,000) 3,098,000 14,000 112,000
Reversal of deferred tax liability on
realisation of revaluation reserve
of assets - (82,000) - -
The calculation of basic/diluted earnings per ordinary share was based on the profit attributable to ordinary
shareholders and the weighted average number of ordinary shares outstanding calculated as follows:
2017 2016
RM RM
Profit for the financial year attributable to owners of the Company 18,135,222 26,022,909
2017 2016
Issued ordinary shares at beginning of financial year (Note 18) 133,333,332 133,333,332
Less: Cumulative effect of treasury shares bought back
in previous financial years (6,438,900) (6,438,700)
Less: Effect of ordinary shares repurchased during the financial year (133) (133)
27. Dividends
Company
2017 2016
Total
Sen per amount Date of
2017 share RM payment
First and final single-tier exempt 2016
ordinary 3.00 3,806,830 27 October 2016
2016
The first and final single-tier exempt dividend recommended by the Directors in respect of the financial
year ended 31 March 2017 is 3.00 sen per ordinary share totalling RM3,806,827, the payment of which
is subject to approval by shareholders at the forthcoming Annual General Meeting which will be
recognised in subsequent financial period.
Group Company
2017 2016 2017 2016
RM RM RM RM
The Group has four reporting segments, which are the Group’s strategic business units. For each of the
strategic business units, the Group Executive Chairman, being the Chief Operating Decision Maker, reviews
internal management reports for resource allocation and decision making at least on a quarterly basis.
The following summary describes the operations in each of the Group’s existing reporting segments:
(a) Manufacturing
- Manufacture and sale of HDPE products and trading of other specialised and technical
engineering products
(b) Works
- Construction of telecommunication towers and share of rental proceeds of telecommunication
towers as well as design, construction and installation of water supply, storage infrastructure
and treatment systems, wastewater treatment specialised systems, hydro systems and other
infrastructure
(d) Others
- Sewerage treatment services, treatment and disposal of sludge services as well as quarry
operation
There are varying levels of integration between the reportable segments. Inter-segment pricing is
determined on negotiated terms.
Performance is measured based on segment profit before tax as included in the internal management
reports. Segment profit is used to measure performance as management believes that such information is
the most relevant in evaluating the results of certain segments relative to other entities that operate within
these industries.
The Group Executive Chairman reviews the statements of financial position of subsidiaries for decision
making and resources allocation, instead of a summary of total consolidated assets and liabilities by
segments. As such, information on segment assets and segment liabilities is not presented.
Group sales were mostly to customers in Malaysia and there were very limited export sales.
Property
Manufacturing Works development Others Consolidated
2017 RM RM RM RM RM
Segment results
Unallocated corporate
expenses (2,528,017)
Share of results of equity
accounted associate (107,384)
Total comprehensive
income for the 20,080,761
financial year
Non-controlling interests (1,966,018)
Total comprehensive
income for the
financial year attributable
to owners of the Company 18,114,743
Property
Manufacturing Works development Others Consolidated
2016 RM RM RM RM RM
Segment results
Unallocated corporate
expenses (2,405,048)
Share of results of equity
accounted associate (109,981)
Total comprehensive
income for the
financial year 28,168,804
Non-controlling interests (1,170,520)
Total comprehensive
income for the
financial year
attributable to owners
of the Company 26,998,284
Geographical segments
In presenting information on the basis of geographical segments, segment revenue is based on the
geographical location of customers.
Revenue from
external customers
(see Note 21) 293,585,551 377,911,568 7,823,437 6,400,416 301,408,988 384,311,984
Major customers
Carrying L&R/
amount (FL) AFS FVTPL-DUIR
2017 RM RM RM RM
Financial assets
Group
Other investments 3,256 - 3,256 -
Trade and other receivables * 104,581,589 104,581,589 - -
Cash and cash equivalents 119,043,350 119,043,350 - -
Company
Other investments 3,256 - 3,256 -
Trade and other receivables * 228,622,463 228,622,463 - -
Cash and cash equivalents 12,578,166 12,578,166 - -
Financial liabilities
Group
Loans and borrowings (71,965,647) (71,965,647) - -
Trade and other payables * (70,166,711) (70,166,711) - -
Derivative financial liabilities (40,119) - - (40,119)
Company
Loans and borrowings (16,366,845) (16,366,845) - -
Trade and other payables * (46,362,559) (46,362,559) - -
Carrying L&R/
amount (FL) AFS FVTPL-DUIR
2016 RM RM RM RM
Financial assets
Group
Other investments 228,422 - 228,422 -
Trade and other receivables * 131,142,129 131,142,129 - -
Cash and cash equivalents 98,543,388 98,543,388 - -
Company
Other investments 3,422 - 3,422 -
Trade and other receivables * 207,798,711 207,798,711 - -
Cash and cash equivalents 22,268,387 22,268,387 - -
Financial liabilities
Group
Loans and borrowings (87,522,251) (87,522,251) - -
Trade and other payables * (84,136,881) (84,136,881) - -
Derivative financial liabilities (327,065) - - (327,065)
Company
Loans and borrowings (23,645,154) (23,645,154) - -
Trade and other payables * (45,961,798) (45,961,798) - -
* Excluding amount due from/to contract customers, advance payments from contract customers
and amount receivable from/payable to Royal Malaysian Custom Department.
The table below summarises the net gains and losses arising from financial instruments:
Group Company
2017 2016 2017 2016
RM RM RM RM
Net gains/(losses) on:
Financial instruments at FVTPL-DUIR (286,946) (360,550) - -
AFS financial assets 157 (62) (166) (310)
Loans and receivables 4,890,785 3,966,090 14,347,775 12,752,241
Financial liabilities measured at
amortised cost (2,646,887) (5,288,538) (2,902,564) (3,357,108)
The Group is exposed to credit risk, liquidity risk and market risk from its use of financial instruments.
Credit risk is the risk of a financial loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations.
The Group’s exposure to credit risk arises principally from its receivables from customers. A
significant portion of these receivables are regular customers of the Group. In addition, the
Company is also exposed to credit risk arising from loans and advances to subsidiaries and
financial guarantees given to banks for credit facilities granted to subsidiaries.
Receivables
Risk management objectives, policies and processes for managing the risk
The Group has a formal credit policy in place mandating the credit worthiness of
customers requiring credit on sales of goods and services rendered to be reviewed to
ensure the exposure to credit risk is controlled and monitored on an on-going basis by
setting appropriate credit limits and terms. For construction projects, credit evaluation on
potential customers or clients is carried out prior to tendering. These include assessment of
customers’ past payment records, sales level and financial standing.
Credit risks from certain customers are further mitigated by issuance of irrevocable letters
of instruction/mandate by the customers to the banks to authorise the banks to remit
payments directly to the Group.
• Inter-company balances
The Company sometimes provides unsecured loans and advances to its subsidiaries. The
Company monitors the performance of the subsidiaries regularly.
As at the end of the reporting period, the maximum exposure to credit risk arising from receivables
is represented by their carrying amounts in the statements of financial position. Cash and cash
equivalents are only placed with licensed banks.
Management has taken reasonable steps to ensure that receivables that are neither past due
nor impaired are stated at their realisable values. The Group monitors individually, using ageing
analysis, all receivables having significant balances past due for more than 120 days, which are
deemed to have higher credit risk.
Receivables (continued)
At the end of the reporting period, significant concentrations of credit risk are as follows:
Group Company
2017 2016 2017 2016
RM RM RM RM
Current
Amount due from three
(2016: three) subsidiaries - - 193,842,766 176,872,513
Trade receivable from one
contract customer in Malaysia 36,032,022 39,652,990 - -
The trade receivable due from a contract customer is secured by an irrevocable letter of
instruction/mandate issued by the contract customer given to the bank to authorise the bank to
remit payments directly to the Group.
The exposure of credit risk for receivables as at the end of the reporting period by geographic
region was:
Group Company
2017 2016 2017 2016
RM RM RM RM
Receivables (continued)
Impairment losses
The ageing of receivables (excluding inter-company non-trade balances, amount due from
contract customers and GST receivables) as at the end of the reporting period was:
Group Company
2017 2016 2017 2016
Age of debts RM RM RM RM
There is no impairment loss recognised for trade receivables other than an amount of
RM4,184,676 (2016: RM4,606,958) as at the end of the reporting period as management does
not expect any external counterparties to fail to meet its obligations due to the strong credit
standings of the counterparties.
The movements in the allowance for impairment loss of receivables during the financial year
were:
Group
RM
Recognised 527,662
Reversals (474,730)
Write-offs (4,221)
Recognised 80,686
Reversals (412,723)
Write-offs (90,245)
An allowance account in respect of receivables is used to record impairment losses. Unless the
Group is satisfied that recovery is possible, the amount considered irrecoverable is written off
against the allowance directly.
Receivables (continued)
There was no indication that the loans and advances due from its subsidiaries are not recoverable
as at the end of the reporting period other than that against which an allowance for impairment
loss of RM2,708,480 (2016: RM8,808,480) has been made (see Note 9).
Financial guarantees
Risk management objectives, policies and processes for managing the risk
The Company provides unsecured financial guarantees to banks in respect of certain banking
facilities granted to some of its subsidiaries. The Company monitors on an on-going basis the
results of the subsidiaries and repayments made thereby to ensure that they are able to meet
their obligations when fall due.
The financial guarantees utilised by the subsidiaries as at the end of the reporting period are
summarised as follows:
Company
2017 2016
RM RM
As at the end of the reporting period, there is no indication that any subsidiary would default on
repayments of its loans and borrowings. The financial guarantees have not been recognised as
their fair value on initial recognition was not material and probability of the subsidiaries defaulting
on the credit lines is remote.
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall
due. The Group’s exposure to liquidity risk arises principally from its various payables, loans and
borrowings.
Risk management objectives, policies and processes for managing the risk
The Group maintains a level of cash and cash equivalents and banking facilities deemed
adequate by the management to ensure, as far as possible, that it will have sufficient liquidity to
meet its liabilities when fall due.
It is not expected that the cash flows included in the maturity analysis in the ensuing pages could
occur significantly earlier, or at significantly different amounts.
Maturity analysis
The table below summarises the maturity profile of the Group and the Company’s financial
liabilities (which are non-derivatives) as at the end of the reporting period based on undiscounted
contractual payments:
More
Carrying Contractual Contractual Under 1-2 2-5 than
amount interest rate cash flows 1 year years years 5 years
Group RM % RM RM RM RM RM
2017
2016
More
Carrying Contractual Contractual Under 1-2 2-5 than
amount interest rate cash flows 1 year years years 5 years
Company RM % RM RM RM RM RM
2017
2016
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates
and other price risks that will affect the Group’s financial position or cash flows.
The Group is exposed to foreign currency risk arising mainly from sales and purchases
denominated in currencies other than the respective functional currencies of group
entities. The major currencies giving rise to this risk are mostly United States Dollar (USD),
Euro (EURO) and Australian Dollar (AUD).
Risk management objectives, policies and processes for managing the risk
As it is not possible to predict with any certainty the movements of foreign exchange rates,
this risk is managed on an on-going and case by case basis and the Group occasionally
uses forward foreign exchange contracts to hedge its foreign currency risk. Most of the
forward foreign exchange contracts have maturities of less than one year after the end of
the reporting period. Where necessary, the forward foreign exchange contracts (see Note
15) are rolled over at maturity.
The Group’s exposure to foreign currency risk attributable to currencies which are other
than the functional currencies of group entities, based on the carrying amounts as at the
end of the reporting period was:
2017 2016
Denominated Denominated
in in
Group USD USD
In RM:
Cash and cash equivalents 851,959 5,454,326
Trade and other payables (4,049,141) (6,034,654)
Derivative financial liabilities (40,119) (327,065)
The Company does not have significant outstanding assets and liabilities denominated in
a currency other than its functional currency, RM.
The functional currencies of the foreign operations of the Group are Euro, Brunei Dollar
and Philippines Peso. The exposure to currency risk of group entities which do not have
Euro, Brunei Dollar and Philippines Peso as functional currencies is not material and hence,
sensitivity analysis is not presented.
A 10% (2016: 10%) strengthening of the RM against the following currencies at the end
of the reporting period would have increased/(decreased) pre-tax profit or loss by the
amounts shown below. This analysis is based on foreign currency exchange rate variances
that the Group considered to be reasonably possible at the end of the reporting period.
This analysis assumes that all other variables, in particular interest rates, remain constant.
Profit or loss
2017 2016
Group RM RM
A 10% (2016: 10%) weakening of RM against the above currencies at the end of the
reporting period would have had equal but opposite effect on the above currencies to
the amounts shown above, on the basis that all other variables remained constant.
(ii) Interest rate risk
The Group’s investments in fixed rate debt securities and its fixed rate loans and borrowings
are exposed to a risk of change in their fair value due to changes in interest rates. The
Group’s variable rate loans and borrowings are exposed to a risk of change in cash flows
due to changes in interest rates. Investments in equity securities and short-term receivables
and payables are not significantly exposed to interest rate risk.
Risk management objectives, policies and processes for managing the risk
The Group finances its daily operations through a mixture of internally generated funds and
bank borrowings. Loans and borrowings with floating interest rates expose the Group to
certain elements of risk when there are unexpected adverse interest rate movements. The
Group’s policy is to manage its interest rate risk, working within an agreed framework, to
ensure that there are no undue exposures thereto. Management monitors this on an on-
going basis and exercises a certain element of discretion on whether to borrow at fixed or
floating interest rates, depending on the market situation and the outlook of the financial
market prevailing then.
The investments in interest-earning assets are mainly short-term in nature and they are not
held for speculative purpose but have been mostly placed as term deposits and cash
funds.
The interest rate profile of the Group and of the Company’s significant interest-bearing
financial instruments, based on the carrying amounts at the end of the reporting period
was:
Group Company
2017 2016 2017 2016
RM RM RM RM
The Group does not account for any fixed rate financial assets and liabilities at fair
value through profit or loss, and the Group does not designate derivatives as hedging
instruments under a fair value hedge accounting model. Therefore, a change in
interest rates at the end of the reporting period would not affect profit or loss.
A change of 100 basis points (“bps”) in interest rates at the end of the reporting period
would have increased/(decreased) pre-tax profit by the amounts shown below. This
analysis assumes that all other variables, in particular foreign currency rates, remain
constant.
Profit or loss
100 bp 100 bp
increase decrease
Group RM RM
Company
Equity price risk arises from the Group’s investments in equity securities.
Risk management objectives, policies and processes for managing the risk
Management of the Group monitors the equity investments on a portfolio basis. Material
investments within the portfolio are managed on individual basis and all buy and sell
decisions are approved by management.
The exposure to equity price risk is not material and hence, sensitivity analysis is not
presented.
The carrying amounts of cash and cash equivalents, short-term receivables and payables and short-
term loans and borrowings approximate fair values due to the relatively short-term nature of these
financial instruments.
The carrying amount of non-current receivables as well as non-current loans and borrowings, which
bear interest at rates approximating the prevailing market rates, also approximates fair value are
disclosed as below.
It is not practicable to estimate the fair value of the Group’s investment in unquoted shares of
RM225,000 subsisting at 31 March 2016 [see Note 10] due to lack of comparable quoted market
prices. As a result, this available-for-sale financial asset is measured at cost in accordance with
accounting policy Note 2(c)(ii)(d).
The fair values of other financial assets and financial liabilities, together with the carrying amounts
shown in the statements of financial position, are as follows:
2017
Financial assets
Quoted shares 3,256 - 3,256 - - 3,256 3,256
Financial liabilities
Forward exchange
contracts - (40,119) (40,119) - - (40,119) (40,119)
Finance lease
liabilities - - - (2,955,914) (2,955,914) (2,955,914) (2,957,027)
Term loans
- Unsecured - - - (16,071,427) (16,071,427) (16,071,427) (16,071,427)
- Secured - - - (27,168,193) (27,168,193) (27,168,193) (27,168,193)
Revolving credit - - - (1,000,000) (1,000,000) (1,000,000) (1,000,000)
2017
Financial assets
Quoted shares 3,256 3,256 - - 3,256 3,256
Financial liabilities
Unsecured term loan - - 16,071,428 16,071,428 16,071,428 16,071,428
Finance lease liabilities - - 295,417 295,417 295,417 295,417
2016
Financial assets
Quoted shares 3,422 - 3,422 - - 3,422 3,422
Trade and other
receivables
- Non-current - - - 3,018,130 3,018,130 3,018,130 3,018,130
Financial liabilities
Forward exchange
contracts - (327,065) (327,065) - - (327,065) (327,065)
Finance lease
liabilities - - - (4,457,613) (4,457,613) (4,457,613) (4,444,290)
Term loans
- Unsecured - - - (23,214,285) (23,214,285) (23,214,285) (23,214,285)
- Secured - - - (27,475,676) (27,475,676) (27,475,676) (27,475,676)
Revolving credit - - - (5,000,000) (5,000,000) (5,000,000) (5,000,000)
2016
Financial assets
Quoted shares 3,422 3,422 - - 3,422 3,422
Financial liabilities
Unsecured term loan - - 23,214,285 23,214,285 23,214,285 23,214,285
Finance lease liabilities - - 440,426 440,426 440,426 430,869
The fair value of an asset to be transferred between levels is determined as of the date of the event
or change in circumstances that caused the transfer.
Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical financial
assets or liabilities that the entity can access at the measurement date.
Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are
observable for the financial assets or liabilities, either directly or indirectly.
Derivatives
The fair value of forward foreign exchange contracts is estimated by discounting the difference
between the contractual forward price and the current forward price for the residual maturity of the
contract using a risk-free interest rate (based on government bonds).
Fair value, which is determined for disclosure purposes, is calculated based on the present value of
future principal and interest cash flows, discounted at the market rate of interest at the end of the
reporting period.
Transfers between Level 1 and Level 2 fair values
There has been no transfer between Level 1 and Level 2 fair values during the financial year (2016: No
transfers in either directions).
The following table shows the valuation techniques used in the determination of fair values within
Level 3, as well as the key unobservable inputs used in the valuation models for disclosure purposes.
Group
Other receivables Discounted cash flows Interest rate at 5.60% The estimated fair value would
(2016: 5.40% - 5.60%) increase/(decrease) if the
interest rate were lower/
(higher)
Unsecured term Discounted cash flows Interest rate at The estimated fair value would
loans 5.35% - 5.45% increase/(decrease) if the
(2016: 5.35% - 5.45%) interest rate were lower/
(higher)
Secured term Discounted cash flows Interest rate at 4.50% The estimated fair value would
loans (2016: 4.70% - 5.90%) increase/(decrease) if the
interest rate were lower/(higher)
Finance lease Discounted cash flows Interest rate The estimated fair value would
liabilities at 5.04% - 5.85% increase/(decrease) if the
(2016: 5.04% - 6.38%) interest rate were lower/
(higher)
Company
Unsecured term Discounted cash flows Interest rate The estimated fair value would
loan at 5.35% - 5.45% increase/(decrease) if the
(2016: 5.03% - 5.13%) interest rate were lower/
(higher)
Finance lease Discounted cash flows Interest rate The estimated fair value would
liabilities at 5.29% - 5.44% increase/(decrease) if the
(2016: 5.31% - 5.44%) interest rate were lower/
(higher)
31. Disposal and acquisition of business operation, subsidiaries and non-controlling interests
On 22 March 2017, WGISB, a wholly-owned subsidiary of the Company has disposed of its entire equity
interest in Media Infra Sdn. Bhd. (formerly known as Weida Eco Rubber Sdn. Bhd.) comprising 100,000
ordinary shares.
Serrisa is a structured entity established to issue Islamic Bonds to finance the acquisition of rights to
share rental proceeds of telecommunication towers. Following the adoption of FRS 10, the Group
considers control exists in Serrisa as the Group is exposed and has right to variable returns from its
involvement in Serrisa. In financial year ended 2017, the Islamic Bonds were fully settled and Serrisa
was deconsolidated from the Group.
2017
RM
On 18 March 2016, WET, a 56% owned subsidiary of the Company disposed of its entire 79% equity
interest comprising 396,000 ordinary shares of RM1.00 each in the share capital of Renexus-Weida
Sdn. Bhd. (“RW”), for a total cash consideration sum of RM316,000. Subsequent to the disposal, RW
ceased as a subsidiary of the Group.
The disposal of RW is not presented separately from continuing operations in the consolidated
statement of profit or loss and other comprehensive income as it does not represent a major line of
business in the Group. The effect of the disposal on the financial position of the Group is presented as
follows:
2016
RM
31. Disposal and acquisition of business operation, subsidiaries and non-controlling interests (continued)
2016
RM
On 10 November 2015, WII, a wholly-owned subsidiary of the Company, entered into a sale of shares
agreement (“SSA”) with related parties, Dato’ Lee Choon Chin (“Dato’ Lee”) and Mr Jee Hon Chong
(“Mr Jee”) to acquire the entire equity interests in the issued and paid up share capital of PFSB,
comprising 5,000 ordinary shares of RM1.00 each, for a total cash consideration of RM6,000,000. Dato’
Lee is the Group Executive Chairman and major shareholder of the Company, whereas, Mr Jee is an
Executive Director and shareholder of the Company. The acquisition was completed on 5 January
2016. Consequently, PFSB has become a wholly-owned subsidiary of WII with effect from 5 January
2016.
The effects of the acquisition of PFSB on the Group’s assets and liabilities on the date of the acquisition
are as follows:
Pre-acquisition
carrying
amounts
2016
RM
5,263,905
Less: Cash and cash equivalents acquired (13,873)
31. Disposal and acquisition of business operation, subsidiaries and non-controlling interests (continued)
Increase in investments
On 6 July 2015, WPSB, a wholly-owned subsidiary of the Company, acquired the balance of 10%
interest in LPSB in cash, increasing its ownership from 90% to 100%. The carrying amount of LPSB’s net
assets in the Group’s financial statements on the date of the acquisition was RM3,022,199. The Group
recognised a decrease in non-controlling interest of RM302,220 and a decrease in retained earnings
of RM1,597,780.
On 1 March 2016, the Company acquired the balance of 30% interest in WMDSB in cash, increasing
its ownership from 70% to 100%. The carrying amount of WMDSB’s net assets in the Group’s financial
statements on the date of the acquisition was RM160,000. The Group recognised a decrease in non-
controlling interest of RM49,331 and an increase in retained earnings of RM19,331.
Decrease in investment
On 30 April 2015 and 27 January 2016 (2015: 29 January 2015), WII partially redeemed 47,040 (2015:
2,381) redeemable preference shares (“RPS”) of RM1.00 each respectively for a total consideration of
RM9,878,400 (2015: RM500,010), of which, RM5,692,680 is settled by way of set off against the amount
due from the Company and RM4,185,720 settled by cash, resulting in a decrease in the Company’s
cost of investment in WII.
On 14 August 2015, BPSB, a 51% owned subsidiary of the Company, entered into a sale and purchase
agreement (“SPA”) with a sub-contractor to acquire its quarry assets, quarry development and quarry
operations for a total cash consideration of RM3,737,902.
As in the previous financial year, the Group’s objectives when managing capital is to maintain a strong
capital base and safeguard the Group’s ability to continue as a going concern, so as to maintain the
confidence of investors, creditors and other stakeholders in the Group and to sustain the future development
of its business. The Directors determine, monitor and maintain an optimal debt-to-equity ratio for the Group
that complies with debt covenants and regulatory requirements.
One of its capital management strategies is to maintain a maximum debt-to-equity ratio of 1.5 times to
comply with the covenants of its unsecured term loans, failing which the affected facilities and borrowings
are subject to recall (see Note 19.3).
Under the requirement of Bursa Malaysia Practice Note No. 17/2005, the Company is required to maintain
a consolidated shareholders’ equity equal to or not less than 25% of the issued and paid-up capitals
(excluding treasury shares) and such shareholders’ equity is not less than RM40,000,000. The Company has
complied with this requirement.
For the purposes of the financial statements, parties are considered to be related to the Group or the
Company if the Group or the Company has the ability, directly or indirectly, to control or jointly control the
parties or exercise significant influence over the parties in making financial and operating decisions, or vice
versa, or where the Group or the Company and the parties are subject to common control. Related party
may be individuals or other entities.
Related parties also include key management personnel defined as those persons having authority and
responsibility for planning, directing and controlling the activities of the Group and the Company either
directly or indirectly. Key management personnel include all the Directors of the Group and the Company,
and certain members of senior management of the Group and the Company.
Company
2017 2016
RM RM
Nature of transaction
Dividends received (16,180,000) (7,772,920)
Management fees received (8,269,574) (8,102,947)
Rental income for furnished premises, inclusive of maintenance (1,034,700) (912,000)
Interest income (14,014,185) (11,914,940)
Interest expense 1,801,075 1,710,401
Transaction with companies in which certain directors of the Company have interests
Group
2017 2016
RM RM
Nature of transaction
Rental of premises 249,000 285,000
Transactions with certain Directors and key management personnel of the Group
Group
2017 2016
RM RM
Nature of transaction
Progressive billings for properties under development (2,887,215) (3,065,317)
Rental of motor vehicle 21,600 -
Purchase of equipment - 3,600
Acquisition of a subsidiary - 6,000,000
Disposal of a subsidiary - (316,000)
Group
2017 2016
RM RM
Nature of transaction
Sale of finished goods (2,601) -
Service charge (13,005) -
Purchase of finished goods - 89,000
Rental of machinery - 2,700
Consultancy fee paid 3,200 3,000
Transaction with persons or a director who are substantial shareholders of the Group or of a corporate
shareholder of the Group
Group
2017 2016
RM RM
Nature of transaction
Progressive billings for properties under development (1,134,562) (1,171,166)
The amounts due from/to subsidiaries are disclosed in Notes 9 and 20 to the financial statements.
The above transactions are based on negotiated terms. All the amounts outstanding are unsecured and
expected to be settled in cash.
On 28 April 2017, Asaljuru Weida Sdn. Bhd., a 49% owned associated company of Weida Medic
Development Sdn. Bhd., which in turn is a wholly-owned subsidiary of the Company, has entered into a
concession agreement with the Government of Malaysia as represented by the Minister of Health in relation
to the upgrading of Hospital Umum Sarawak by way of development of new buildings, on a public private
partnership by way of private financing initiatives under the build, lease, maintain and transfer model. The
concession shall be for a period of 20 years, comprising a construction period of 3 years, followed by asset
management services and the operation and management services of the medi-hotel and car park for a
period of 17 years thereafter.
35. Supplementary financial information on the breakdown of realised and unrealised profits or losses
The breakdown of the retained earnings of the Group and of the Company as at 31 March into realised
and unrealised profits or losses, pursuant to Paragraphs 2.06 and 2.23 of Bursa Malaysia Securities Berhad
Main Market Listing Requirements, is as follows:
Group Company
2017 2016 2017 2016
RM RM RM RM
The determination of realised and unrealised profits or losses is based on Guidance on Special Matter No.1,
Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa
Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants on 20
December 2010, and presented based on the format prescribed by Bursa Malaysia Securities Berhad.
Lot 472, Block 8, Muara Office and Leasehold 7/7/2058 17.39 19 28,446,691 02/01/2015
Tebas Land District, Jalan manufacturing
Bako, 93050 Kuching, buildings and
Sarawak storage yard
Lot 109, Jalan Permata Office and Freehold N/A 3.04 20 10,382,607 02/01/2015
1, Arab-Malaysian manufacturing
Industrial Park, 71800 building and
Nilai, Seremban, Negeri storage yard
Sembilan Darul Khusus
No.3, Lorong Teknologi Office building Leasehold 18/10/2106 0.23 4 7,281,860 01/12/2013
3/4B, Nouvelle Industrial
Park Lot 10, Taman
Sains Selangor 1, Kota
Damansara, 47810
Petaling Jaya,
Selangor Darul Ehsan
Lot 108, Jalan Permata Storage yard Freehold N/A 3.68 7 7,128,455 02/01/2015
1, Arab-Malaysian
Industrial Park, 71800
Nilai, Seremban, Negeri
Sembilan Darul Khusus
Lot 35, Block 4, Muara Workers’ Leasehold 31/12/2037 9.92 18 6,619,611 05/01/2016
Tebas Land District, Jalan quarters
Bako, 93050 Kuching,
Sarawak
Lot 8, Industrial Zone 13, Manufacturing Leasehold 31/12/2098 2.11 8 6,000,000 08/12/2016
Kota Kinabalu Industrial building and
Park, 88801 Kota storage yard
Kinabalu, Sabah
Lot 57, SEDCO-Lok Kawi Office and Leasehold 31/12/2042 2.15 21 3,994,341 02/01/2015
Industrial Estate, Papar, manufacturing
88801 Kota Kinabalu, building
Sabah
Lot 1969, Block 5, Kuala Office and Leasehold 14/8/2056 0.64 12 3,455,854 02/01/2015
Baram Land District, manufacturing
Taman Senadin, 98100 building and
Miri, Sarawak storage yard
Lot 8309, Jalan Permata Storage yard Freehold N/A 1.00 N/A 2,640,516 02/01/2015
1, Arab-Malaysian
Industrial Park, 71800
Nilai, Seremban, Negeri
Sembilan Darul Khusus
Lot 58, SEDCO-Lok Kawi Manufacturing Leasehold 31/12/2042 1.03 15 2,283,209 02/01/2015
Industrial Estate, Papar, building and
88801 Kota Kinabalu, storage yard
Sabah
Lot 1972, Block 5, Kuala Storage yard Leasehold 14/8/2056 0.64 N/A 1,346,919 18/06/2014
Baram Land District,
Taman Senadin, 98100
Miri, Sarawak
Lot 1970, Block 5, Kuala Storage yard Leasehold 14/8/2056 0.64 N/A 1,191,960 02/01/2015
Baram Land District,
Taman Senadin, 98100
Miri, Sarawak
Lot 56, SEDCO-Lok Kawi Manufacturing Leasehold 31/12/2042 0.93 N/A 770,822 02/01/2015
Industrial Estate, Papar, building and
88801 Kota Kinabalu, storage yard
Sabah
Lot 59, SEDCO-Lok Kawi Storage yard Leasehold 31/12/2042 1.03 7 733,450 03/11/2009
Industrial Estate, Papar,
88801 Kota Kinabalu,
Sabah
Lot 48, SEDCO-Lok Kawi Storage yard Leasehold 31/12/2042 0.82 N/A 445,765 03/11/2009
Industrial Estate, Papar,
88801 Kota Kinabalu,
Sabah
#
Less than 0.01%
* Excluding 6,439,100 ordinary shares bought back and retained as treasury shares based on the Record of
Depositors as at 19 June 2017.
* Excluding 6,439,100 ordinary shares bought back and retained as treasury shares based on the Record of
Depositors as at 19 June 2017.
Notes:
(a) Excluding 6,439,100 ordinary shares bought back and retained as treasury shares based on the Record of
Depositors as at 19 June 2017.
(b) Deemed interested by virtue of his substantial shareholding in Weida Management Sdn. Bhd.
(c) Deemed interested by virtue of her spouse’s, Dato’ Lee Choon Chin and her substantial shareholdings in
Weida Management Sdn. Bhd.
Directors’ Interests
The Director, Dato’ Lee Choon Chin by virtue of his interests in shares in the Company is also deemed to have
interests in shares in all of its related corporations to the extent the Company has an interest, pursuant to Section
8 of the Companies Act 2016. The other Directors have no interests in the shares of the related corporations of
the Company.
Notes:
(a) Excluding 6,439,100 ordinary shares bought back and retained as treasury shares based on the Record of
Depositors as at 19 June 2017.
(b) Deemed interested by virtue of his substantial shareholding in Weida Management Sdn. Bhd. and his
children in the Company.
NOTICE IS HEREBY GIVEN that the Eighteenth Annual General Meeting of Weida (M) Bhd. (“WEIDA” or “the
Company”) will be held at Imperial Hotel, Jalan Datuk Tawi Sli, 93250 Kuching, Sarawak on Tuesday, 22
August 2017 at 9.30 a.m. to transact the following businesses:
AGENDA
Ordinary Business
1. To receive the Audited Financial Statements for the financial year ended 31 March 2017 [Please refer
together with the Reports of the Directors and Auditors thereon. to Explanatory
Note (a)]
2. To declare and approve the payment of a first and final single-tier exempt dividend Resolution 1
of 3.00 sen per ordinary share in respect of the financial year ended 31 March 2017 as
recommended by the Directors.
3. To approve the payment of directors’ fees amounting to RM550,000.00 for the financial Resolution 2
year ending 31 March 2018 (2017: RM550,000.00).
4. To approve the payment of other benefits (excluding directors’ fees) to Directors up to an Resolution 3
amount of RM103,000.00 for the year ending 31 March 2018 until the conclusion of the next
annual general meeting.
5. To re-elect the Director, Mr. Yeoh Chin Hoe who retires in accordance with Article 81 of the Resolution 4
Company’s Articles of Association.
6. To re-elect the Director, Mr. Lee Pet Loi who retires in accordance with Article 81 of the Resolution 5
Company’s Articles of Association.
7. To re-appoint KPMG PLT as the Company’s auditors until the conclusion of the next annual Resolution 6
general meeting and to authorise the Directors to fix their remuneration.
Special Business
Continuation in office as Independent Director pursuant to Practice 4.2 of the Malaysian Resolution 7
Code on Corporate Governance 2017
“THAT, subject to the passing of Resolution 4 above, approval be and is hereby given to
Mr. Yeoh Chin Hoe who has served as an Independent Director of the Company for a
consecutive term of more than nine (9) years, to continue in office as an Independent
Director of the Company.”
Authority to issue shares pursuant to Sections 75 and 76 of the Companies Act 2016 Resolution 8
“THAT, pursuant to Sections 75 and 76 of the Companies Act 2016 and subject always to the
approval of the relevant authorities, the Directors be and are hereby empowered to issue
shares in the Company from time to time and upon such terms and conditions and for such
purposes as the Directors may deem fit provided that the aggregate number of shares
issued pursuant to this resolution does not exceed 10% of the total number of issued shares
of the Company for the time being and that the Directors be and are also empowered to
obtain the approval for the listing of and quotation for the additional shares so issued on
the Bursa Malaysia Securities Berhad and that such authority shall continue in force until the
conclusion of the next annual general meeting of the Company.”
10. To consider and, if thought fit, pass the following ordinary resolution:
Proposed renewal of authority for purchase of own shares by the Company Resolution 9
“THAT, subject always to the Companies Act 2016 (as may be amended, modified or re-
enacted from time to time) (“the Act”), rules, regulations and orders made pursuant to the
Act, provisions of the Company’s Memorandum and Articles of Association and the Main
Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) and any
other relevant authorities, where applicable, the Company be hereby unconditionally and
generally authorised to purchase and/or hold such an amount of ordinary shares (“Shares”)
in the Company (“Proposed Share Buy-Back”) as may be determined by the Directors from
time to time through Bursa Securities upon such terms and conditions as the Directors may
deem fit, necessary and expedient in the interest of the Company provided that the total
aggregate number of shares purchased and/or held or to be purchased and/or held
pursuant to this resolution shall not exceed ten percent (10%) of the total number of issued
shares of the Company for the time being and an amount of funds not exceeding the
Company’s total retained earnings at the time of purchase be allocated by the Company
for the Proposed Share Buy-Back AND THAT such shares purchased are to be retained as
treasury shares and distributed as dividends and/or resold on the market of Bursa Securities,
or subsequently may be cancelled;
AND THAT the Directors be and are hereby authorised and empowered to do all acts and
things and to take all such steps and to enter into and execute all commitments, transactions,
deeds, agreements, arrangements, undertakings, indemnities, transfers, assignments and/
or guarantees as they may deem fit, necessary, expedient and/or appropriate in order to
implement, finalise and give full effect to the Proposed Share Buy-Back with full powers to
assent to any conditions, modifications, revaluations, variations and/or amendments, as
may be required or imposed by any relevant authorities;
AND FURTHER THAT the authority hereby given will commence immediately upon the
passing of this resolution and will continue to be in force until:
(a) the conclusion of the next annual general meeting of the Company, at which time
it will lapse, unless by ordinary resolution passed at that meeting, the authority is
renewed, either unconditionally or subject to conditions;
(b) the expiration of the period within which the next annual general meeting after that
date is required by law to be held; or
(c) revoked or varied by ordinary resolution passed by the shareholders in general
meeting.
whichever occurs first, in accordance with the provisions of the guidelines issued by Bursa
Securities or any other relevant authorities.”
11. To transact any other business which may properly be transacted at an annual general
meeting, due notice of which shall have previously given in accordance with the
Companies Act 2016 and the Company’s Articles of Association.
NOTICE IS ALSO HEREBY GIVEN that a first and final single-tier exempt dividend of 3.00 sen per ordinary share in
respect of the financial year ended 31 March 2017, if approved at the Eighteenth Annual General Meeting, will
be payable on 27 October 2017 to depositors whose names appear in the Record of Depositors on 9 October
2017.
(a) shares transferred into the depositor’s securities account before 4:00 pm on 9 October 2017 in respect of
transfer; and
(b) shares bought on Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of
Bursa Malaysia Securities Berhad.
Explanatory notes
(a) This agenda item is meant for discussion only and therefore, it will not be put forward for voting.
(b) Ordinary resolutions in relation to the re-election of Independent director (proposed Resolution 4 and Resolution
5)
The Nominating Committee and the Board of Directors have assessed the independence of Mr. Yeah Chin Hoe
and Mr. Lee Pet Loi and recommended them to be re-elected as the Directors of the Company.
(c) Ordinary resolution in relation to continuation in office as Independent Director pursuant to Practice 4.2 of the
Malaysian Code on Corporate Governance 2017
The proposed Resolution 7 is to seek shareholders’ approval to retain Mr. Yeoh Chin Hoe, whose tenure as
Independent Director of the Company has exceeded tenure limit of nine (9) years. The Board of Directors
(“Board”) and the Nominating Committee have assessed him and thereby recommended that he continues in
office as an Independent Director of the Company based on the following justifications:
i) his experience, networking, understanding of business and objectivity in approach enables him to provide
the Board and Board Committees with pertinent expertise, skills and competence and his independence
judgement will continue to add credence to the Company;
ii) he remains professionally independent and vocal, actively participated in deliberations and exercised
independent judgement at Board and Board Committee meetings without being influenced by operational
consideration; and
iii) he acts in the best interests of all shareholders and his continuation in office as Independent Director will
provide a check and balance to operational management.
(d) Ordinary resolution on authority to issue shares pursuant to Sections 75 and 76 of the Companies Act 2016
The proposed Resolution 8 will give powers to the Directors to issue up to a maximum ten per cent (10%) of
the total number of issued shares of the Company for the time being for such purposes as the Directors would
consider in the best interest of the Company. This authority, unless revoked or varied by the Company at a
general meeting, will expire at the next annual general meeting of the Company.
The general mandate sought for issue of shares is a renewal of the mandate that was approved by the
shareholders at the Company’s annual general meeting held on 26 August 2016 (“AGM 2016”). The Company
did not utilize the mandate that was approved at the AGM 2016.
The general mandate is to provide flexibility to the Company to issue new shares without the need to convene
separate general meeting to obtain its shareholders’ approval so as to avoid incurring additional cost and time.
The purpose of this general mandate is for possible fund raising exercises including but not limited to further
placement of shares for purpose of funding current and/or future investment projects, working capital and/or
acquisitions.
(e) Ordinary resolution in relation to proposed renewal of authority for purchase of own shares by the Company
The proposed Resolution 9, if passed, will renew the authority for the Company to purchase and/or hold up to ten
per cent (10%) of the total number of issued shares of the Company through Bursa Malaysia Securities Berhad. This
authority will expire at the conclusion of the next annual general meeting, unless revoked or varied by ordinary
resolution passed by shareholders at general meeting.
Please refer to the Statement to Shareholders dated 28 July 2017 for further information.
Notes:
1. A member entitled to attend, speak and vote at the meeting is entitled to appoint a proxy or proxies to attend,
speak and vote in his stead. A proxy may but need not be a member of the Company and there shall be no
restriction as to the qualification of the proxy. A proxy appointed to attend, speak and vote at a meeting of a
Company shall have the same rights as the member to speak at the meeting.
2. A member entitled to attend, speak and vote at this Annual General Meeting shall not be entitled to appoint
more than two (2) proxies to attend, speak and vote at the same meeting. Where a member appoints more
than one (1) proxy, the appointment shall be invalid unless he specifies the proportions of his shareholdings to be
represented by each proxy.
3. If the appointor is a corporation, the Form of Proxy must be executed under its Common Seal or under the hand
of an officer or attorney duly authorized.
4. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company
for multiple beneficial owners in one (1) securities account (“omnibus account”), there is no limit to the number
of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds.
An exempt authorised nominee refers to an authorised nominee defined under the Securities Industry (Central
Depositories) Act 1991 (“SICDA”) which is exempted from compliance with the provisions of subsection 25A(1) of
SICDA.
5. The Form of Proxy must be deposited at the registered office of the Company at Wisma Hock Peng, Ground Floor
to 2nd Floor, 123, Green Heights, Jalan Lapangan Terbang, 93250 Kuching, Sarawak not less than 48 hours before
the time set for holding the meeting or any adjournment hereof.
6. A depositor whose name appears in the Record of Depositors as at 15 August 2017 shall be regarded as a
member of the Company entitled to attend this Annual General Meeting or appoint a proxy to attend, speak
and vote on his behalf.
Form of Proxy
I/We (Name in full)
(IC/Passport/Company No.) of
(Address)
being a member/members of the abovenamed Company hereby appoint
(Name in full)
(IC/Passport No.) of
(Address)
or failing him/her, the Chairman of the meeting as my/our proxy to vote for me/us and on my/our behalf at the
Eighteenth Annual General Meeting of the Company to be held at Imperial Hotel, Jalan Datuk Tawi Sli, 93250
Kuching, Sarawak on Tuesday, 22 August 2017 at 9.30 a.m. and any adjournment thereof.
Please indicate with an “X” in the appropriate box against each resolution how you wish your vote to be cast.
If you do not indicate how you wish your proxy to vote on any resolution, the proxy shall vote as he thinks fit, or
at his discretion, abstain from voting.
My/our proxy is to vote as indicated below:
No. Resolutions For Against
1. To declare and approve the payment of a first and final single tier dividend of 3.00
sen per ordinary share in respect of the financial year ended 31 March 2017.
2. To approve the payment of directors’ fees for the financial year ending 31 March
2018.
3. To approve the payment of other benefits (excluding directors’ fees) to Directors
for the financial year ending 31 March 2018.
4. To re-elect Mr. Yeoh Chin Hoe as director.
5. To re-elect Mr. Lee Pet Loi as director.
6. To re-appoint KPMG PLT as auditors.
7. To retain Mr. Yeoh Chin Hoe as an Independent Director.
8. To renew the authority to issue shares pursuant to Sections 75 and 76 of the
Companies Act 2016.
9. To renew the authority for purchase of own shares by the Company.
Proxy 1 %
Proxy 2 %
Total 100%
Notes :
1. A member entitled to attend, speak and vote at the meeting is entitled to appoint a proxy or proxies to attend, speak and
vote in his stead. A proxy may but need not be a member of the Company and there shall be no restriction as to the
qualification of the proxy. A proxy appointed to attend, speak and vote at a meeting of a Company shall have the same
rights as the member to speak at the meeting.
2. A member entitled to attend, speak and vote at this Annual General Meeting shall not be entitled to appoint more than
two (2) proxies to attend, speak and vote at the same meeting. Where a member appoints more than one (1) proxy, the
appointment shall be invalid unless he specifies the proportions of his shareholdings to be represented by each proxy.
3. If the appointor is a corporation, the Form of Proxy must be executed under its Common Seal or under the hand of an
officer or attorney duly authorized.
4. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for
multiple beneficial owners in one (1) securities account (“omnibus account”), there is no limit to the number of proxies
which the exempt authorised nominee may appoint in respect of each omnibus account it holds. An exempt authorised
nominee refers to an authorised nominee defined under the Securities Industry (Central Depositories) Act 1991 (“SICDA”)
which is exempted from compliance with the provisions of subsection 25A(1) of SICDA.
5. The Form of Proxy must be deposited at the registered office of the Company at Wisma Hock Peng, Ground Floor to 2nd
Floor, 123, Green Heights, Jalan Lapangan Terbang, 93250 Kuching, Sarawak not less than 48 hours before the time set for
holding the meeting or any adjournment hereof.
6. A depositor whose name appears in the Record of Depositors as at 15 August 2017 shall be regarded as a member of the
Company entitled to attend this Annual General Meeting or appoint a proxy to attend, speak and vote on his behalf.
Fold here
AFFI X
STAMP
WEIDA ( M) BHD.
Wisma Hock Peng
Ground Floor to 2nd Floor
123, Green Heights
Jalan Lapangan Terbang
P.O.Box 2424
93748 Kuching
Sarawak
Fold here
MALAYSIA www.weida.com.my
FINANCIAL STATEMENTS
MALAYSIA
56 Directors’ Report
60 Statement by Directors
60 Statutory Declaration
61 Independent Auditors’ Report
67 Statements of Financial Position
68 Statements of Profit or Loss and Other Comprehensive Income
70 Consolidated Statement of Changes in Equity REPUBLIC OF THE PHILIPPINES www.weida.com.ph
74 Statement of Changes in Equity
75 Statements of Cash Flows
78 Notes to the Financial Statements MANILA
161 List of Properties Manufacturing plant:
163 Analysis of Shareholdings 3/F, BT & T Center, Lot 11 & 13, Block 3,
20E. Rodriguez Jr. Avenue (C-5)
165 Notice of Eighteenth Annual General Meeting Brgy. Bagumbayan, Libis,
Dasmarinas Technopark,
Governor’s Drive,
167 Notice of Dividend Entitlement and Payment Quezon City 1110, Philippines. Dasmarinas Cavite 4114, Philippines.
Tel : +632 706 2002, 656 2002 Tel : +632 584 4858, 584 4859
Form of Proxy Fax : +632 706 4966 Fax : +632 584 4649
Email : sales@weida.com.ph
.
WE I DA (M ) BHD.
(5 0 4 7 47-W )
Annual Report
2017
ANNUAL REPORT 2 01 7
A B ALA N C E D S US TAIN AB LE GR O W T H