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1ANNUAL REPORT 2015 | EFFICIENT E-SOLUTIONS BERHAD 1ANNUAL REPORT 2015 | EFFICIENT E-SOLUTIONS BERHAD

OUR MISSIONWe endeavour to delight our customers with BPO services that use cutting edge technologies and best practices, enabled by committed people and innovative processes that protect the integrity and security of our customer’s data and documents

OUR VISIONTo be a trusted and preferred business process outsourcing (BPO) service provider to organisations in key segments of economies in the region and beyond

CONTENTSChairman’s Statement 2

Corporate Information 5

Corporate Structure 6

Board of Directors 7

Audit Committee Report 10

Corporate Governance Statement 12

Statement on Risk Management andInternal Control 18

Additional Compliance Information 20

Financial Statements 22

List of Properties 113

Analysis of Shareholdings 114

Notice of Annual General Meeting 118

Statement AccompanyingNotice of Annual General Meeting 122

Proxy Form

2 ANNUAL REPORT 2015 | EFFICIENT E-SOLUTIONS BERHAD

CHAIRMAN’S STATEMENT

On behalf of the Board of

pleasure to present to you the Annual Report and the Audited

31 December 2015.

FINANCIAL PERFORMANCE

optimization of resources in the Group.

The Group has recorded a consolidated revenue of RM44.7 million in 2015, a slight decrease of 3.0% as compared to RM46.1 million in 2014.

increase of 704% as compared to RM5.6 million in 2014. The increase was due to the net gain from the disposal of subsidiary

December 2015.

SIGNIFICANT EVENT

During the year, the Group had entered into a Share Purchase Agreement on 25 September 2015 to dispose its entire interest

Bhd to Canon Singapore Pte Ltd, for an aggregate disposal

precedent stipulated in the Share Purchase Agreement, the disposal of shares was completed on 31 December 2015.

The Circular on the proposed disposal dated 30 October 2015 was issued and approved by our shareholders at the Extraordinary General Meeting (EGM) on 21 November 2015.

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3ANNUAL REPORT 2015 | EFFICIENT E-SOLUTIONS BERHAD

CHAIRMAN’S STATEMENT (cont’d)

RATIONALE FOR THE MAJOR DISPOSAL

The Group is primarily involved in integrated outsourcing solutions in data and document processing, provision of

products and forms printing. Since July 2010, postal tariffs in Malaysia have doubled. Further in 2013, Bank Negara Malaysia

allowed the option for the insurance policies to be printed in one language instead of two languages.

We expect the print statement market to continue to consolidate further, driven by but not limited to the factors stated and in the event of consumers and businesses switch to digital media, which could result in a further reduction in the use of printed statements in the near future.

As such, the Board views the offer from Canon Singapore as an opportunity for our Group to unlock and realize the value of its investments in the print business which we diligently built over 20 years with integrity.

strengths of Canon Singapore in assuring continuity in future services to our existing customers and our loyal employees and the potential business expansion regionally and globally.

Group has been constantly working on process improvements and embarking on new initiatives in other area of BPO.

Our Group has initiated expanding into physical and digital document storage management and had acquired 5 parcels of land at Bandar Baru Enstek, Seremban, Negeri Sembilan for the purpose of constructing the relevant facilities. Construction of the said facilities on one (1) of the parcels of land has been

(CCC) has been obtained.

Moving forward, our Group will focus our resources into developing the services of physical and digital document storage management as well as other areas of BPO.

DIVIDEND

The Group has declared an interim single tier special cash dividend of 17% per ordinary share of RM0.10 each with a total

2016. It will be paid to the Entitled Shareholders on 20 April 2016.

CORPORATE SOCIAL RESPONSIBILITY

We are committed to run our business in a responsible and sustainable manner that adds value for our stakeholders, workplace, community and the environment. Social responsibility is an integral part of EFFICIENT’s business philosophy. In line with this philosophy, the Group has taken proactive steps in making contributions toward community, environment and workplace. The initiatives undertaken include the continued provision of food subsidy to our employees,

of a safe, healthy and conducive working environment for our employees and the preservation of environment.

Among the activities are:-

With the aim of maintaining a healthy work life balance

organized a few friendly matches among the staff throughout the year. This is to further establish an attitude of teamwork among employees and foster a stronger friendship among colleagues.


CHAIRMAN’S STATEMENT (cont’d)

APPRECIATION

On behalf of the Board, I wish to express my heartiest appreciation to all our customers, partners, vendors, associates and shareholders for their continued support, trust

I also wish to express my sincere gratitude to my colleagues on the Board, the management team and all the employees of EFFICIENT Group for their dedication, diligence and loyalty shown throughout all these years.

DATO’ ABDUL LATIF BIN ABDULLAHChairman

We continously build and maintain a closer business relationship with our customers through various friendly matches throughout the year. It has been mutually rewarding experience for both teams of excellence.

We constantly create awareness amongst the employees on the importance of preserving the environment and to promote healthy living. A group of 8 staff had a wonderful time hiking Penang Hill on 7 November 2015.

It was an exciting venture for the team as most of them

beauty of nature. Great staff bonding indeed.

5ANNUAL REPORT 2015 | EFFICIENT E-SOLUTIONS BERHADANNUAL REPORT 2015 | EFFICIENT E-SOLUTIONS BERHA

CORPORATE INFORMATION

No. 3, Jalan Astaka U8/82Taman Perindustrian Bukit JelutongSeksyen U8, Bukit Jelutong40150 Shah Alam, Selangor Darul EhsanTel : 03-7847 2777Fax : 03-7847 1777

Symphony Share Registrars Sdn BhdLevel 6, Symphony HousePusat Dagangan Dana 1, Jalan PJU 1A/4647301 Petaling Jaya, Selangor Darul EhsanTel : 03-7849 0777Fax : 03-7841 8151, 03-7841 8152

PKF (AF0911)Level 33, Menara 1MKKompleks 1 Mont’ KiaraNo. 1, Jalan Kiara, Mont’ Kiara50480 Kuala LumpurTel : 03-6203 1888Fax : 03-6201 8880

Chan Mun Yee & Associates

AmBank (M) BerhadAlliance Bank Malaysia Berhad

Main Market of Bursa Malaysia Securities Berhad

BOARD OF DIRECTORS

Chairman /Senior Independent Non-Executive Director

Managing Director

Executive Director

Executive Director

Independent Non-Executive Director

Independent Non-Executive Director

AUDIT COMMITTEE

Chairman

COMPANY SECRETARIES

MAICSA 7002027 MAICSA 7056310


CORPORATE STRUCTURE

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DATO’ ABDUL LATIF BIN ABDULLAHMalaysian, aged 66 years

was appointed as the Chairman and Independent Non-Executive Director of EFFICIENT on 2 August 2004. He is also a member of Audit Committee and Chairman of the Nomination & Remuneration Committee. He gained his Bachelor of Arts (Hons) in International Relations from University Malaya in 1975, Master of Science (Marine Law & Policy) from University of Wales (UWIST) in 1981, Senior Management Development Program from Harvard Business School in 1992 and a member of Chartered Institute of Logistics & Transport, UK in 1990.

He started his career in 1975 with the Ministry of Foreign Affairs attached to West Asian Desk. He then joined the Malaysian International Shipping Corporation Berhad as an Executive, Liner Division. From 1982 to 1992, he was with Perbadanan Nasional Shipping Line Berhad (“PNSL”) and was instrumental in the formation and heading a number of subsidiaries and joint venture companies with the PNSL Group. He was the General Manager, Business and Corporate Division before opting to join Mitsui OSK Lines (M) Sdn Bhd in 1990 as a founder Director and remains as Chairman after his retirement in 2005.

Presently, Dato’ Abdul Latif serves as Chairman of Ancom Logistics Berhad and Deputy Chairman of Ekowood International Berhad. He also holds various private limited company directorships in Malaysia.

VINCENT CHEAH CHEE KONGMalaysian, aged 57 years

was appointed as the Managing Director of EFFICIENT on 21 January 2004. He holds a Bachelor of Arts (General Political Science) from the University of Waterloo, Canada. He has over 20 years of experience as an entrepreneur in various industry such as outsourcing services, information technology, security systems, garment manufacturing, food & beverage and government supplies. He is one of the pioneering members

EFFICIENT, which he joined in 1990.

He is responsible for formulating and implementing business policies and corporate strategies of the Group and has been instrumental in spearheading the progress and development of the Group to ensure organizational effectiveness.

VICTOR CHEAH CHEE WAIMalaysian, aged 46 years

has served as CEO of EFFICIENT from year 2003. He graduated from the University of Newcastle, Sydney in 1992 with a Bachelor of Commerce degree majoring in Accounting and Marketing. In May 2008, he attended the Owner / President Management Programme at Harvard Business School, Boston, U.S.A. Victor is the Executive Director of EFFICIENT and also a member of the ESOS Committee.

He started his career in Sime Darby Berhad in 1992, promoted as Head of Project Sales in Chubb (M) Sdn Bhd, a subsidiary of

Sdn Bhd, a wholly owned subsidiary of EFFICIENT, as a Director.

He has been responsible for the marketing and operations of the Group. As a leader who is result oriented and focused, he spearheaded and implemented various processes for major

policy printing for insurance companies and scanning and archiving of security documents for both private and public sector companies. He was instrumental in the setting up of the Bukit Jelutong facilities in Shah Alam, which incorporated the

especially in the area of data security.

He currently sits on the boards of several other private limited companies and always seeks to invest in the future by providing various business opportunities for the Group.

BOARD OF DIRECTORS


ESTHER SOON YOKE LENGMalaysian, aged 55 years

was appointed as an Executive Director of EFFICIENT on 21 January 2004. She is the Joint Company Secretary of EFFICIENT. She is an associate member of Institute of Chartered Secretaries and Administrators (ICSA), UK under the Financial stream. In May 2008, she attended the Owner / President Management Programme at Harvard Business School, Boston, U.S.A.

management, corporate services, strategic human resources planning and leadership development.

Sdn Bhd, a wholly owned subsidiary of EFFICIENT, which she joined in 1990 and has been instrumental in establishing and managing the initial operations of the company. She is responsible for the strategic human resources planning, leadership training and development and secretarial functions of the Group. She is also overseeing few initiatives in the

She holds directorship in various private limited companies.

HO HIN CHOYMalaysian, aged 51 years

was appointed as an Independent Non-Executive Director of EFFICIENT on 26 February 2007. He is a member of the Audit Committee and ESOS Committee. He graduated from the University of New South Wales, Sydney with a Bachelor of Commerce in Accounting. He also holds a Diploma in Marketing from Chartered Institute of Marketing (United Kingdom) and is a member of the Malaysian Institute of Accountants (MIA).

He started his career in 1987 with Bland and Partners, Sydney as an audit and tax agent. He subsequently joined Touche Ross & Co, England as an exchange trainee in 1988. He joined Price Waterhouse, Singapore in 1988 as an Auditor. In 1990, he joined DHL International (S) Pte Ltd, a courier services company, in Singapore, as a Financial Accountant and subsequently, in 1991, he joined DHL Worldwide Express Sdn Bhd, a courier services company, in Petaling Jaya, as a Finance Manager. Since 1995, he has been a Capital Markets Services Representative with Public Investment Bank Bhd.

He also sits on the board of various other private limited companies in Malaysia.

VOONG KIAN YEEMalaysian, aged 49 years

was appointed as an Independent Non-Executive Director of EFFICIENT on 27 April 2011. He was also appointed as Chairman of the Audit Committee, member of the Nomination & Remuneration Committee and Chairman of ESOS Committee. He is a member of the Malaysian Institute of Accountants

Accountants (MICPA). He started his career as Audit Assistant

Young as Audit Senior. In 1998, he joined a group of companies principally involved in telecommunication and online ventures, as Finance Manager. Subsequently in 2001, he joined Kerry Beverages (Overseas) Limited, a franchisee bottling plant for bottling and distribution of beverages in People Republic

E-Solutions Berhad as Finance and Administration Manager.

he joined since 2006. Presently, he operates his own company as income tax and GST agent.

BOARD OF DIRECTORS (cont’d)


Board Meetings

year ended 31 December 2015. The record of attendance is as follows:-

No. of meeting attended

Dato’ Abdul Latif bin Abdullah 6/6

Vincent Cheah Chee Kong 4/6

Victor Cheah Chee Wai 6/6

Esther Soon Yoke Leng 5/6

Ho Hin Choy 6/6

Voong Kian Yee 6/6

Family relationships

None of the directors of the Company have any family relationship with any other directors and / or major shareholders of the Company except Mr Vincent Cheah Chee Kong who is the brother of Mr Victor Cheah Chee Wai.

interest with the Group.

None of the directors has been convicted of any offences

BOARD OF DIRECTORS (cont’d)


The Audit Committee comprises the following directors:

Chairman

Voong Kian Yee Independent Non-Executive Director

Members

Dato’ Abdul Latif bin Abdullah Senior Independent Non-Executive Director

Ho Hin Choy Independent Non-Executive Director

The composition of the Audit Committee is in compliance with Paragraph 15.09 of the Main Market Listing Requirements.

Meetings

A total of six (6) Audit Committee Meetings were held during

attendance is as follows:-

No. of meeting attended

Voong Kian Yee 6/6

Dato’ Abdul Latif bin Abdullah 5/6

Ho Hin Choy 6/6

The Audit Committee carried out its duties in accordance with the Terms of Reference reviewed and approved by the Board at least once every three (3) years.

The roles and responsibilities, amongst others, of the Audit Committee are as follows:-

competency and resources of the internal audit function and that it has the necessary authority to carry out its

results of the internal audit programmes, processes or investigation undertaken and whether or not appropriate action is taken on the recommendations of the internal

statements, prior to the approval of the Board of Directors, focusing particularly on:-(i) changes in or implementation of major accounting

(iii) compliance with accounting standards and other legal requirements.

interest situation that may arise within the Group including any transaction, procedure or course of conduct that

share scheme for employees complies with the criteria of

to believe that the Group’s external auditor is not suitable

and

matters which result in a breach of Listing Requirements.

AUDIT COMMITTEE REPORT


AUDIT COMMITTEE REPORT (cont’d)

activities of the Audit Committee covered, amongst others, the following:

of the Company and the Group prior to recommendation to the Board of Directors for consideration and approval.

appointment as external auditor.

Group’s employees to the external auditors.

arising from the statutory audit and the audit report.

audit, and any matter the external auditors may wish to discuss.

interest that may arise within the Group.

Corporate Governance Statement and Audit Committee Report.

Processing operations to ensure the deal was fair and

was in the best interest of the Company.

The Company has engaged IA Essential, a risk consultancy specialist, as internal auditors to assist the Audit Committee and the Board in the effective discharge of their responsibilities

reports to the Audit Committee and is guided by its Audit Charter in its independent appraisal function. The cost incurred for the internal audit function amounted to RM 35,197.49 for

The Internal Auditors is responsible to:-

plan, including related follow-up activities.

Group.

adequacy of the existing control policies and procedures.

the control policies and procedures.

or weaknesses in the systems of internal controls of the Group that may result in material losses incurred by the Group for the


CORPORATE GOVERNANCE STATEMENT

review, the Board has continued to apply good governance practices in managing and directing the business of the Group by adopting the recommendations and the best practices prescribed in the Malaysian Code on Corporate Governance (“the Code”).

The objective of the principles stated in the Code is to set out the fundamental structures for effective functioning of the board.

The Board has the overall governance responsibilities to lead and control the Group. The Board reviews the business direction, development and control of the Group and has

stewardship duties. When implementing the business plan, the Executive Directors are responsible for making and implementing operational and corporate decisions while the Non-Executive Directors are responsible to provide independent views, advice and judgment in consideration of the interests of shareholders at large.

as the corporate exercises, shareholders’ and corporate communication and governance matters, award of contract,

The Board recognises the importance of strategic plan and overseeing the conduct of the business. This will ensure that the business is being properly managed and controlled. Presently, the strategic business actions and plans undertaken by the Executive Directors are reviewed by the Board in

and explanations provided by the Executive Directors and management.

The Board has established its Audit Committee, Nomination

& Remuneration Committee (“NRC”) and ESOS Committee

responsibilities. These Committees ensure greater attention, objectivity and independence are provided in the deliberations

Chairmen of the respective Board Committees would report

and salient matters deliberated in the Committees.

All Board Members have unrestricted access to the advice and services of the Company Secretary for the purposes of the Board’s affairs and the business. The appointment and removal of Company Secretary or Secretaries of the Board shall be the prerogative of the Board as a whole. The Company Secretary

to support the Board in carrying out its role and responsibilities.

The Company Secretary is responsible for ensuring that Board procedures are followed, the applicable rules and regulations for the conduct of the affairs of the Board are complied with and all matters associated with the maintenance of the Board are performed effectively.

In addition, the Company Secretary ensures minutes are duly entered into the books for all resolutions and proceedings of all meetings of the Board and Board Committees. These minutes of meetings record the decisions taken and the views

the respective Board Committees and signed by Chairman of the meeting.

The supply, timeliness and quality of the information affect the effectiveness of the Board to overseeing the conduct of the business and to evaluate the management performance. Board Members have full and unrestricted access to all information pertaining to the Group’s business and affairs, including

matters as well as activities and performance of the Company


CORPORATE GOVERNANCE STATEMENT (cont’d)

to enable them to discharge their duties. Subject to the Board’s approval, all board members could also seek independent professional advices when necessary in furtherance their responsibilities,

Apart from schedule of matters mentioned in the foregoing,

providing information and guidance to stakeholders on the ethical approaches applied by the Board.

Descriptions of the background of each director presented previously remain substantially unchanged. Therefore, pursuant to Para 9.25 of the Listing Requirements, such information is published on the corporate website at www.

Independence is important for ensuring objectivity and fairness in board’s decision making.

Presently, the Board consists of three (3) Executive Directors and three (3) Independent Non-Executive Directors. The

independence structurally with non-executive members and Independent Directors constituting half of the Board composition.

The roles and responsibilities of the Chairman and Managing Director continue to be separated and the Chairman of the Board is an Independent Director. The Board had also

as the Senior Independent Director for shareholders to convey

In order to uphold independence of Independent Directors, the Board has adopted and applied the following policies:-

tenure of Independent Directors should not exceed a

ii. Annual assessment of independence of its Independent Directors focusing on events that would affect the ability of Independent Directors to continue bringing independent and objective judgment to board deliberation and the

independence of the Independent Directors, Dato’ Abdul Latif and Mr. Ho Hin Choy who have served the Board for

to exercise their objectivity and independence in the interest of the shareholders at large. A resolution for the continuance of Dato’ Abdul Latif and Mr. Ho Hin Choy as Independent Directors of the Board was proposed in the previous AGM and subsequently approved by the shareholders.

Supply of Information

The Board members in their individual capacity have unrestricted access to complete information in the form and quality necessary for the discharge of their duties and responsibilities. Prior to each Board meeting, all Board members are furnished with the relevant documents and

understanding of the issues to be deliberated during the meetings.

External independent professional advisers are also made available to render their independent views and advices to the Board, whenever deemed necessary and in appropriate circumstances, at the Company’s expense.

The Directors also have access to the advices and services of the Company Secretaries, who are responsible in ensuring that Board meeting procedures are followed and that applicable rules and regulations are complied with.


NRC, is entrusted with the responsibility to recommend candidates for appointment to the Board and Board Committees and assessing the effectiveness of the Board, Audit Committee and the individual directors in accordance with the best practices of the Code.

The Board acknowledges the important of gender diversity in the board composition and through its NRC ensures that women candidates are sought when considering future candidate for vacancy at the Board. With the recommendation of the NRC, the Board appoints its members through a process, which is consistent with the Articles of Association of the Company. The Company Secretaries ensure that all appointments are properly made and that legal and regulatory obligations are met.

In accordance with the Company’s Articles of Association, all Directors who are appointed by the Board are subject to

after their appointment. The Articles also provide that at least one-third (1/3) of the remaining Directors are required to submit themselves for re-election by rotation at each Annual General Meeting.

Directors standing for re-election at the forthcoming Annual General Meeting of the Company are detailed in the notice of the 13th Annual General Meeting.

Consistent with the Best Practices, the appraisals of individual director, Board Committees and the Board were documented.

were as follows:-

i) reviewed the required mix of skills, experience and other

ii) assessed the effectiveness of the Board as a whole, the Committees of the Board and the contribution, competencies, skillsets, qualities and experience of each

iii) recommended the Directors who retire in accordance with Article 120 of Company’s Articles of Association to the Board for re-election in the 12th AGM held on 25 June

iv) assessed the independence of its independent directors, who had served for a cumulative term of more than nine

v) reviewed the remuneration of the executive directors.

Board Commitment

The underlying factors of Directors’ commitment to the Group are devotion of time and continuous improvement of knowledge and skill sets.

The Board meets at least every quarter and on other occasions, as and when necessary, to inter-alia review and approve

Annual Report, business ventures as well as to review the performance of the company and its operating subsidiaries, governance matters and other business development matters. Board papers are circulated to the Board members prior to the Board meetings so as to provide the Directors with relevant and timely information to enable them to have proper deliberation on issues raised during Board meetings.

The details of attendance of the members are shown on page 9 of this Annual Report.



The Board acknowledges that continuous training is essential for the Directors to be equipped to effectively discharge their

year are as below:

Vincent Cheah i) Market Outlook Seminar Chee Kong ii) CommunicAsia and Enterprise IT 2015

Victor Cheah i) CommunicAsia and Enterprise Chee Wai IT 2015

Esther Soon i) Introduction of the Exchange’s New Yoke Leng Bursa LINK ii) CG Breakfast Series with Directors: “The Board’s Response in Light of Rising Shareholder Engagements” iii) Sustainability Symposium iv) CG Breakfast Series with Directors: Future of Auditor Reporting - The Game Changer for Boardroom

Voong Kian Yee i) Real Property Gains Tax, Rental Income and GST Implications for Property Investors ii) Budget Seminar 2015 iii) Seminar Rumah Selangorku Dan Akta Pengurusan Bangunan (Akta 757)

Ho Hin Choy i) AMLATPUAA 2001: The Law, Compliance & Vulnerabilities ii) Phillip Capital Investment Conference 2015 iii) Phillip Portfolio Manager iv) Sustainability Symposium v) Understanding GDP

Dato’ Abdul Latif Bin Abdullah was unable to attend any training due to his busy work schedule. However, he has kept

changes in requirements and regulations to enable him to contribute to the Board effectively.

The Board recognised the importance of having remuneration framework for Directors as well as the remuneration packages of the Executive Directors, which should be structured to link rewards to corporate and individual performance.

The NRC considers and applies the principles recommended by the Code in determining the directors’ remuneration. Executive Directors are remunerated based on the Group’s performance, market conditions and their responsibilities whilst the remuneration of the Non-Executive Directors is determined in accordance with their experience and the level of responsibilities assumed.

ended 31 December 2015 were as follows:



Non-

(RM) (RM

Salaries and other emoluments 1,435,136 51,000 Fees - - Bonus 190,000 -

67,100 -

Total 1,692,236 51,000


of the Company presents a fair and balance view and

in accordance with the provisions of the Companies Act 1965 and applicable approved accounting standards. The Board is assisted by the Audit Committee in reviewing the accuracy, adequacy and completeness of disclosure and ensuring the

reporting standards.

The remuneration of the Directors are summarised in bands of

were as follows:

Range of Remuneration Non-

Below RM50,000 - 3 RM300,001 to RM350,000 1 - RM550,001 to RM600,000 1 - RM800,001 to RM850,000 1 -

As part of the Audit Committee review processes, the Audit Committee has obtained written assurance from the External

throughout the conduct of the audit engagement in accordance with the terms of all relevant professional and regulatory requirements

Annually, the Audit Committee also reviews the appointment, performance and remuneration of the External Auditors before recommending them to the shareholders for re-appointment in the AGM. The Audit Committee would convene meeting with the External Auditors and Internal Auditors without the presence of the Executive Directors and employees of the Group as and when necessary.

Risk Management

The Board acknowledges that risk management is an integral part of good management practices. Risk is inherent in all business activities. It is, however, not the Group’s objective to eliminate risk totally, but to provide structural means to identify, prioritize and manage the risks involved in all the Group’s activities and to balance between the cost of managing and

In order to formalise the present risk management and internal

Risk policy.

The Board has established an internal audit function which is

Internal Auditors report to the Audit Committee directly and they are responsible for conducting regular reviews and appraisals of the effectiveness of the governance, risk management and internal controls and processes within the Group. During the

the data management system, corporate governance practices and a follow-up audit. Further details of the Group’s state of risk management and internal control systems are reported in the Statement on Risk Management and Internal Control on pages 18 to 19.


Corporate information is important for investors and shareholders. The Board is advised by management, the Company Secretaries and the External and Internal Auditors on the contents and timing of disclosure requirements of the

and various announcements.

circulars, annual reports, corporate announcement and press releases on Bursa’s website, the Board leverages on its corporate website to communicate, disseminate and provide further information and details on the governance reporting. Further, pursuant to Para 9.25 of the Listing Requirements, publication of those static and principal governance information such as charter and board committees’ terms of reference are transferred from annual report to the Company’s website in order to reduce dilution of impact of issues discussed in the annual report.

Sustainability

Based on the business, industry, and regulatory environment in which the Group’s businesses operate in, the Executive Directors and management require its business units to comply with statutory regulations on safety and health and ensure environmentally friendly practices in the Group.

In addition, the group has organized various social activities for its employees and community as part of its business sustainability philosophy. Details of the corporate social responsibility are presented on pages 3 to 4.

Shareholders’ Right

The Board strongly encourages all shareholders to participate in the general meeting. Shareholders are advised that general meeting enable them to exercise their rights. During general meeting, shareholders may raise questions for each proposed resolution and on matters relating to the Group’s businesses and affairs. Members of the Board members are present in the general meetings to respond to shareholders’ queries.

Shareholders have the right to demand a poll vote at general meetings and poll voting is mandated for related party transactions that require shareholders’ approval.

The Board would respond to meetings with institutional shareholders, analysts and members of the press to convey information regarding the Group’s performance and strategic direction as and when requested.

DIRECTORS’ RESPONSIBILITY STATEMENT

The Directors are responsible for ensuring that:

and of the Company are drawn up in accordance with the approved accounting standards in Malaysia, the provisions of the Companies Act, 1965 and the Main Market Listing Requirements so as to give a true and fair view of the state of affairs of the Group and the Company

II. Proper accounting and other records are kept which

reasonable accuracy and taking reasonable steps to ensure that appropriate systems are in place to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

year ended 31 December 2015, the Directors have adopted appropriate accounting policies and have applied them

prudent judgments and estimates. The Directors are also

basis as the Directors have a reasonable expectation, having made enquiries, that the Group and the Company have adequate resources to continue operations for the foreseeable future and all relevant approved accounting standards have



This Statement of Risk Management and Internal Control is made pursuant to Paragraph 15.26 (b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) with regard to the disclosure of the Group’s state of risk management and internal control. In making this Statement, the Board is guided by the latest “Statement on Risk Management and Internal Control – Guidelines for Directors of Listed Issuers” issued by the Task Force on Internal Control with the support and endorsement of the Bursa Securities.

BOARD RESPONSIBILITIES

The Board understands the principal risks of the business that the Group is engaged in and continues to use the following key controls, review mechanism and information to derive its comfort of the state of risk management and internal control in the Group.

(i) Board discussions with management during the board meetings on business ventures and operational issues as well as the measures taken by management to mitigate and manage risks associated with the business and

(ii) Delegation and separation of responsibilities between the Board and management. The Executive Directors report to the Board on the performance of the operations and its management while the Board scrutinizes the management performance to ensure its effectiveness and

(iii) Management organisation structure aligning to business and operational functions. Each function is headed by a

and responsibility as well as approval and authorization

(iv) The Group’s management carries out monitoring and

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

(v) The Audit Committee reviews in consultation with the

and the Group’s progress towards achieving the desired

(vi) The presence of internal audit function to assist the Audit Committee and the Board in conducting independent assessment on the internal control systems and the governance practices. The Internal Auditors undertake their periodic reviews in accordance with the audit plan

with the requirements of ISO 9001 Quality Management System and ISO 27001 Information Security Management

customers of the delivery of quality products and services by the Group and the effectiveness of information security

(viii) Management feed backs on the Group’s risk management and internal control systems have been operating

(ix) Director representations on the boards of the companies

(x) The internal and external physical security controls installed within the premises to prevent unauthorized access to the building and customers’ details and information.


STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL (cont’d)

MANAGEMENT RESPONSIBILITIES AND ASSURANCE

Management is responsible to the Board for identifying risks relevant to the business, implementing and maintaining sound systems of risk management and internal control and

performance. In making this Statement, the Group Managing Director has represented to the Board that, to the best of his knowledge, the Group’s risk management and internal control systems are operating adequately and effectively, in all material aspects.

BOARD ASSURANCE AND LIMITATION

management and internal control of the Group (excluding associated companies which the Board have no control over their operations) are effective to enable the Group to achieve its business objectives and there were no material losses

additional disclosure in the Annual Report.

The Board recognises that the systems of risk management and internal control should be continuously improved in line with the evolving business development. Nonetheless, it should be noted that all risk management systems and systems of internal control could only manage rather than eliminate risks of failure to achieve business objectives. Therefore, these systems of risk management and internal control can only provide reasonable but not absolute assurance against material misstatements, frauds and losses.

REVIEW BY EXTERNAL AUDITORS

The External Auditors have reviewed this Statement on Risk Management and Internal Control for inclusion in this annual report and have reported to the Board that nothing has come to their attention that causes them to believe that this Statement is inconsistent with their understanding of the process the Board and management have adopted in the review of the adequacy and effectiveness of the systems of risk management and internal control of the Group.


Disclosure pursuant to Paragraph 9.25 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad

The Company had on 25 June 2015 sought and obtained approval from its shareholders in respect of share buy-back of up to 10% of the issued and paid-up share capital of the Company.

the Company.

There were no fund raising exercises implemented during

Save for the options granted, exercised and lapsed as disclosed in the Directors’ Report of Financial Statements, the Company did not issue any options, warrants or

did not sponsor any ADR or GDR programme.

There were no sanctions and/or penalties imposed on the Company and its subsidiaries, directors or management

(vi) Non-Audit Fees

There was no non-audit fee paid by the Company to

ADDITIONAL COMPLIANCE INFORMATION

previously announced.

(viii)

Saved as disclosed below there were no other material contracts entered into by the Group since the end of the preceding year which are still subsisting:-

RE Sdn Bhd (“ERESB”) had on 17 September 2015 entered into a Sale and Purchase Agreement pursuant to which EMC shall sell and transfer to ERESB, and ERESB shall purchase, the parcel of land presently held under Geran 58809, Lot 64223, Mukim Damansara, Daerah Petaling, Negeri Selangor measuring approximately 8,152 square metres together with the production factory,

bearing postal address No. 3, Jalan Astaka U8/82, Taman Perindustrian Bukit Jelutong, Seksyen U8, Bukit Jelutong, 40150 Shah Alam, Selangor Darul Ehsan (“Bukit Jelutong Property”) for a consideration of RM34,000,000.00 upon the terms and conditions of the said Sale and Purchase Agreement. The sale and purchase of the Bukit Jelutong Property was completed on 1 October 2015.

b) EMC and ERESB had on 17 September 2015 entered into a Sale and Purchase Agreement pursuant to which EMC shall sell and transfer to ERESB, and ERESB shall purchase, the residential unit bearing postal address Parcel No. 11-01, Level 11, Seaview Tower, Ocean Palms Condominium, KM 9 Batang Tiga, Tanjong Kling, 76400 Melaka


The Company had obtained the approval of its shareholders at the Extraordinary General Meeting held on 21 November 2015.

On 31 December 2015, the Company announced that all conditions precedent to the Proposed Disposal

conditions of the Share Purchase Agreement dated 25 September 2015, marking the completion of the Proposed Disposal.

Revenue Nature

The aggregate value of the RRPT conducted between the Company’s subsidiaries with the related parties during

ADDITIONAL COMPLIANCE INFORMATION (cont’d)

Regalia Records Management Sdn Bhd (“RRM”)

RRM is deemed related to the Group by virtue of a director of the Group, Victor Cheah Chee Wai, is also the director in RRM.

RRM is an associated company of

holds 30% equity interest in RRM.

No. Nature of Transactions Amount transacted (RM)

1 Provision of document archiving 9,917 and related services by RRM

408,240 storage and related services to RRM

carton storage and related services 420,000 to RRM

(the “Ocean Palms Property”) for a consideration of RM340,000.00 upon the terms and conditions of the said Sale and Purchase Agreement. The sale and purchase of the Ocean Palms Property was completed on 1 October 2015.

c) HIG Livingston Sdn Bhd (“HIG”) and EMC had on 25 August 2015 entered into a Termination Agreement pursuant to which HIG and EMC have agreed to terminate the Sale and Purchase Agreement dated 25 January 2013 made between HIG and EMC in respect of the sale and purchase of the residential unit bearing postal address Unit No: C1-22, Level No 22, Olive Tree Residences (the “Olive Tree Property”). Pursuant to the said Termination Agreement, HIG has refunded to EMC the sum of RM723,200.00 which had been paid by EMC in and towards the purchase consideration of the Olive Tree Property.

had on 17 September 2015 entered into a Sale and Purchase Agreement pursuant to which ESSB shall sell and transfer to ERESB, and ERESB

measuring approximately 2,715 square feet bearing postal address of Parcel No. 2A-21-1, Level 21, Block 2A, Plaza Sentral Phase II, Jalan Stesen Sentral, 50470 Kuala Lumpur (the “Plaza Sentral Property”) for a total consideration of RM3,203,700.00 upon the terms and conditions of the said Sale and Purchase Agreement. The sale and purchase of the Plaza Sentral Property was completed on 1 October 2015.

e) The Company had on 25 September 2015 entered into a Share Purchase Agreement with Canon Singapore Pte. Ltd. (“CSPL”) for the disposal of the Company’s 100% equity interest in EMC (including Printegrate Sdn Bhd, a wholly owned subsidiary of EMC) and ESSB to CSPL for a total cash consideration of RM75,000,000 upon the terms and conditions of the said Share Purchase Agreement.

Parties Relationship

FINANCIAL STATEMENTS

Directors’ Report 23

Statement by Directors 28

Statutory Declaration 29

Report of the Independent Auditors 30

Other Comprehensive Income 32

Statements of Financial Position 34

Statements of Changes in Equity 36

Statements of Cash Flows 38

Notes to the Financial Statements 41

232015 |

the year ended 31 December 2015.

Principal activities

Results

Group Company RM RM

Attributable to:

Reserves and provisions

Dividends

24 2015 |

Directors

Cheah Chee KongVictor Cheah Chee Wai

Voong Kian Yee

Directors’ interests in shares

Number of ordinary shares of RM0.10 each Balance as at Balance as atIn the Company 1.1.2015 Bought Sold 31.12.2015 Direct Interest:

Indirect Interest:

deemed to be interested in the shares of all the related corporations to the extent the Company has an interest.

252015 |

Issue of shares and debentures

Options granted over unissued shares

Other statutory information

that:

debts; and

provision for doubtful debts; or

26 2015 |

misleading; or

Company misleading or inappropriate; or

secures the liabilities of any other person; or

2015 |

Auditors

____________________________________________

____________________________________________

Selangor

28 2015 |

STATEMENT BY DIRECTORS PURSUANT TO SECTION 169 (15) OF THE COMPANIES ACT, 1965 IN MALAYSIA

____________________________________________

____________________________________________

Selangor

292015 |

STATUTORY DECLARATION PURSUANT TO SECTION 169 (16) OF THE COMPANIES ACT, 1965 IN MALAYSIA

____________________________________________

____________________________________________

30 2015 |

REPORT ON THE FINANCIAL STATEMENTS

10 to 89.

Directors’ Responsibility for the Financial Statements

Auditors’ Responsibility

also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made

Opinion

312015 |

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

kept by the Company and its subsidiaries have been properly kept in accordance with the provisions of the Act.

statements and we have received satisfactory information and explanations required by us for those purposes.

OTHER REPORTING RESPONSIBILITIES

OTHER MATTERS

PKF NGU SIOW PING

32 2015 |

Group Company 2015 2014 2015 2014 Note RM RM RM RM

Continuing operations

Discontinued operations

332015 |


Basic average (loss)/earnings attributable to owners of the Company per ordinary share (sen) 9

E

34 2015 |


ASSETS Non-current assets

Current assets

TOTAL ASSETS EQUITY AND LIABILITIES

TOTAL EQUITY

352015 |


Non-current liabilities

Current liabilities

TOTAL LIABILITIES

TOTAL EQUITY AND LIABILITIES

36 2015 |

Non-distributable Distributable Fair Share Share value Retained Note capital premium reserve earnings Total RM RM RM RM RM

Group

Other comprehensive income:

Distributions to owners of the Company:


2015 |

Non-distributable Distributable Fair Share Share value Retained Note capital premium reserve earnings Total RM RM RM RM RM

Company


Distributions to owners of the Company:


38 2015 |


Amortisation of software development

Impairment of investment property and

Impairment of Investment in associated

capital changes

392015 |


Cash generated from/(used in) operations

Net cash (used in)/from operating activities

Proceeds from disposal of investment with

Consideration received from disposal of

Net cash from/(used in) investing activities

40 2015 |


Net increase/(decrease) in cash and

Note:

Cash and cash equivalents comprise the following:


412015 |

1. Basis of preparation

going concern which contemplates the realisation of assets and settlement of liabilities in the normal course of business.

(a) Standards issued and effective

Effective for annual periods beginning on Description or after

Contributions

42 2015 |

1. Basis of preparation (cont’d)

(b) Standards issued but not yet effective

not yet effective:

Effective for annual periods beginning on Description or after

in Associates: Sale or Contribution of Assets between an investor and it Associate or

Investment Entities – Applying the Consolidation Exception

of Depreciation and Amortisation

432015 |


(b) Standards issued but not yet effective (cont’d)

MFRS 15 Revenue from Contracts with Customers

with the current practices.

MFRS 9 Financial Instruments

amortised cost. It is expected that the Company’s investment in unquoted shares will be measured at fair value through other comprehensive income.

(c) Basis of measurement

44 2015 |


(d) Critical accounting estimates and judgements

(i) Income Taxes

deferred tax provisions in the year in which such determination is made.

(ii) Depreciation of Property, Plant and Equipment and Software development expenditure

and competitors’ actions in response to the market conditions.

residual values are not being taken into consideration for the computation of the depreciable amount.

Changes in the expected level of usage and technological development could impact the economic useful lives

When the recoverable amount of an asset is determined based on the estimate of the value in use of the cash

452015 |


(d) Critical accounting estimates and judgements (cont’d)

valuation of inventories.

such difference will impact the carrying value of receivables.

Deferred tax implications arising from the changes in corporate income tax rates are measured with reference to the estimated realisation and settlement of temporary differences in the future periods in which the tax rates are

date. While management’s estimates on the realisation and settlement of temporary differences are based on the

performance and other factors could potentially impact on the actual timing and amount of temporary differences realised and settled. Any difference between the actual amount and the estimated amount would be recognised in

46 2015 |


(d) Critical accounting estimates and judgements (cont’d)

estimates on the amounts required to settle the liabilities arising from legal and constructive obligations. A change

(ix) Impairment of goodwill

Some properties comprise a portion that is held to earn rentals or for capital appreciation and another portion that is held for use in the production or supply of goods or services or for administrative purposes. If these

a property does not qualify as investment property.

2015 |

(a) Basis of consolidation

affect those returns through its power over the entity.

the investee’s return. Potential voting rights are considered when assessing control only when such rights are substantive.

deconsolidated from the date that control ceases.

initially at their fair values at the acquisition date.

recognised and previously held interest measured is less than the fair value of the net assets of the subsidiary

48 2015 |

(a) Basis of consolidation (cont’d)

are prepared for the same reporting date as the Company. Consistent accounting policies are applied to like transactions and events in similar circumstances.

Acquisitions of subsidiaries are accounted for by applying the acquisition method.

less

Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent

492015 |


acquirer’s replacement awards is included in measuring the consideration transferred in the business combination.

based value of the acquiree’s awards and the extent to which the replacement awards relate to past and / or future service.

2011 has been carried forward from the previous FRS framework as at the date of transition.

held interests are treated as a revaluation and recognised in other comprehensive income.

to the business combination.

or loss on the date of acquisition.

reassessed on acquisition unless the business combination results in a change in the terms of the contract that

50 2015 |


(iii) Non-controlling interests

(iv) Transactions with Non-controlling interests

recognised directly in equity.

then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as

512015 |


(vi) Transactions eliminated on consolidation

Unrealised gains arising from transactions with equity accounted associates are eliminated against the investment

of the investments and is instead included as income in the determination of the group’s share of the associates

(b) Discontinued operations

been discontinued from the start of the comparative period.

52 2015 |

(c) Foreign currencies

(i) Functional and presentation currency

(ii) Foreign currency transactions

Company and its subsidiaries are recorded on initial recognition in the functional currencies at exchange rates approximating those ruling at the transaction dates.

foreign currencies measured at fair value are translated using the exchange rates at the date when the fair value was determined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at the reporting

foreign operation.

are also recognised directly in equity.

532015 |

(c) Foreign currencies(cont’d)

2015 2014 RM RM

1 United States Dollar 4.29 3.49

(d) Revenue

Company and the revenue can be reliably measured.

(i) Sale of goods

(ii) Revenue from services

services are performed.

(iii) Dividend income

Dividend income is recognised when the shareholder’s right to receive payment is established.

54 2015 |

(d) Revenue (cont’d)

(iv) Rental income

Rental income from investment property is recognised on a straight line basis over the term of lease.

(v) Interest income

accumulating compensated absences such as paid annual leave are recognised when services are rendered by

compensated absences such as sick leave are recognised when the absences occur.

(f) Borrowing costs

552015 |

(i) Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation

enacted by the reporting date.

(ii) Deferred tax

Deferred tax liabilities are recognised for all taxable temporary differences other than those that arise from

contingent liabilities over the business combination costs or from the initial recognition of an asset or liability in a

deferred tax assets to be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the

at the end of the reporting period.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same taxation authority.

56 2015 |

items are recognised in correlation to the underlying transactions either in other comprehensive income or directly in equity and deferred tax arising from a business combination is included in the resulting goodwill or excess of

over the business combination.

(h) Impairment

asset is impaired.

individually are subsequently assessed for impairment on a collective basis based on similar risk characteristics.

average credit period and observable changes in national or local economic conditions that correlate with default on receivables.

2015 |

(h) Impairment (cont’d)

An asset’s recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. For

revaluation was taken to other comprehensive income. In this case the impairment is also recognised in other comprehensive income up to the amount of any previous revaluation.

An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount

Impairment loss on goodwill is not reversed in a subsequent period.

58 2015 |

%

Signboard 10

circumstances indicate that the carrying values may not be recoverable.

year the asset is derecognised.

592015 |

(j) Investment properties

Investment properties are derecognised when either they have been disposed of or when the investment property is

retirement or disposal.

(i) Goodwill on consolidation

impairment losses.

60 2015 |

Where goodwill forms part of a cash generating unit and part of the operation within that cash generating unit

is measured based on the relative fair values of the operations disposed of and the portion of the cash generating unit retained.

treated as assets and liabilities of the foreign operations and are recorded in the functional currency of the foreign

at the date of acquisition.

any accumulated amortisation and accumulated impairment losses.

612015 |

frequently if the events and circumstances indicate that the carrying value may be impaired either individually or

derecognised.

(l) Financial assets

are designated as such upon initial recognition.

without any deduction for transaction costs it may incur on sale or other disposal. Changes in fair value are

62 2015 |

(l) Financial assets (cont’d)

in any of the two preceding categories.

and the Company’s right to receive payment is established.

632015 |

(l) Financial assets (cont’d)

Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less impairment loss.

within 12 months after the reporting date.

consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is

period generally established by regulation or convention in the marketplace concerned. All regular way purchases

Company commit to purchase or sell the asset.

(m) Inventories

Inventories are stated at the lower of cost and net realisable value.

plus the cost of bringing the inventories to their present location and condition.

overheads.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and estimated costs necessary to make the sale.

changes in value.

64 2015 |

(o) Financial liabilities

the hedge accounting criteria. Derivative liabilities are initially measured at fair value and subsequently stated at

exchange differences.

are subsequently measured at amortised cost using the effective interest method.

652015 |

(p) Provisions

reliable estimate of the amount can be made.

to be required to settle the obligation.

after deducting all of its liabilities. Ordinary shares are equity instruments.

they are declared.

(r) Operating segments

management of the Company regularly reviews the segment results in order to allocate resources to the segments and to assess the segment performance. Additional disclosures on each of these segments are shown in the Note 31 to

segment information.

(s) Contingencies

A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence will

66 2015 |

3. Revenue


Dividend income from:

Group Company 2015 2014 2015 2014 RM RM RM RM

Auditors’ remuneration:

Amortisation of software development

2015 |


Directors’ remuneration:

68 2015 |

Group 2015 2014 RM RM

6. Finance costs

Group 2015 2014 Note RM RM

692015 |


operations

operations

2015 |

Reconciliation of effective tax rates


Over provision of

8. Discontinued operations

shares was completed on 31 December 2015.

2015 |

8. Discontinued operations (cont’d)

Group 2015 2014 Note RM RM

Group 2015 RM

2015 |

8. Discontinued operations (cont’d)

Group 2015 RM

Net assets and liabilities

2015 |

9. Earnings per share


Basic average (loss)/earnings attributable to owners of the Company per ordinary

2015 |

Electrical Freehold Computer and Renovation

2015 RM RM RM RM RM RM RM RM

GroupCost

Disposal of

Investment

Accumulated depreciation

Disposal of

Investment

2015 |



Carrying value



Group Cost


Carrying value

2015 |

Motor Computer

2015 RM RM RM

Company Cost


Carrying value

2014 Company Cost


Carrying value

2015 |

granted to the subsidiary companies as follows:


11. Investment properties

Development cost in Freehold land Buildings progress Total2015 RM RM RM RM

Group Cost


2015 |

11. Investment properties (cont’d)

Development cost in Freehold land Buildings progress Total2015 RM RM RM RM

Carrying value

Fair value

2014 Group Cost

Fair value

generate rental income through letting of investment properties.

independent valuers and the fair value of remaining properties are estimated by the Directors based on the comparison method that refers to market values of similar properties in the open market.

12. Investment in subsidiaries

Company 2015 2014

2015 |

12. Investment in subsidiaries (cont’d)

Percentage of

Name of subsidiaries 2015 2014 Principal activities (%)

and preparation of printed documents for distribution by post.

distribution of documents.

related business documents.

related services.

80 2015 |

12. Investment in subsidiaries (continued)

13. Investment in associates


Percentage of

Name of associates 2015 2014 Principal activities (%)

812015 |

13. Investment in associates (cont’d)

2015 2014 Regalia Regalia Records Other Records Other Management immaterial Management immaterial Sdn. Bhd. associate Total Sdn. Bhd. associate Total RM RM RM RM RM RM

Assets and liabilities

Results

82 2015 |

14. Other investments


Non-current

Current


Cost

832015 |



Carrying value

16. Goodwill on consolidation


At cost

84 2015 |

16. Goodwill on consolidation (cont’d)

determined to be higher than its carrying amount.

experience and expectations of market developments.

17. Inventories


At cost

18. Trade receivables

on a case by case basis.

852015 |

19. Non-trade receivables, deposits and prepayments


from a party that had an interest in the Company prior to the disposal of its entire interest as disclosed in Note 39 to the

20. Amount due from subsidiaries

86 2015 |


guarantee granted to a subsidiary company.

22. Share capital

Group and Company 2015 2014 2015 2014 Number of Ordinary Shares RM RM

Authorised:

Issued and fully paid:

2015 |

23. Share premium

Group and Company 2015 2014 RM RM

Share premium is in respect of the premium on the issuance of new ordinary shares above their par value.

24. Retained earnings

distributed to shareholders as tax exempt dividends.

25. Borrowings - secured


Current

Non-current

88 2015 |

25. Borrowings - secured (cont’d)


corporate guarantee from the Company.

secured by a corporate guarantee from the company.

892015 |


follows:

Property, plant and

RM

90 2015 |

Unabsorbed capital allowances RM

Property, plant and

RM

912015 |


27. Trade payables

28. Non-trade payables and accruals


92 2015 |

28. Non-trade payables and accruals (cont’d)


29. Dividends

In respect of

year per share of dividend payment % RM

2014

Identities of related parties

parties.

932015 |

shareholding interests.

Group Company 2015 2014 2015 2014

RM RM RM RM

AssociatesProvision of document archiving and

Subsidiaries Contra of outstanding debts for the purchase

different from that obtainable in transactions with unrelated parties.

31. Segment information

94 2015 |

31. Segment information

Discontinued Continued Data and Disposal of document Software Forms subsidiaryGroup processing development printing companies Total Others Elimination Consolidated2015 RM RM RM RM RM RM RM RM

Revenue

Results

Associated companies

952015 |

31. Segment information (cont’d)

Discontinued Continued Data and document Software Forms Disposal of processing development printing Others Eliminations subsidiaries ConsolidatedGroup RM RM RM RM RM RM RM

2015 Net asset

Other information

96 2015 |


Data and document Software Forms processing development printing Others Eliminations ConsolidatedGroup RM RM RM RM RM RM

2014 Revenue

Results

Associated companies

2015 |


Data and document Software FormsGroup processing development printing Others Eliminations Consolidated2014 RM RM RM RM RM RM

Net asset

Other information

98 2015 |

32. Financial instruments

for Fair value Loans liabilities

Group amount assets or loss receivables amortised cost 2015 RM RM RM RM RM

Financial assets

Financial liabilities

992015 |

32. Financial instruments (cont’d)


Group amount assets or loss receivables amortised cost 2014 RM RM RM RM RM Financial assets

Financial liabilities

100 2015 |

32. Financial Instruments (cont’d)


Company amount assets or loss receivables amortised cost 2015 RM RM RM RM RM

Financial assets

Financial liability

1012015 |

32. Financial Instruments (cont’d)


Company amount assets or loss receivables amortised cost 2014 RM RM RM RM RM

Financial assets

Financial liability

102 2015 |


by dealing exclusively with high credit rating counterparties.

experience and the current economic environment.

customer or to a group of customers.

Exposure to credit risk

1032015 |


Ageing analysis

Gross Individual Collective Carrying Amount Impairment Impairment ValueGroup RM RM RM RM

2015

Past due:

2014

Past due:

104 2015 |


Interest rate risk


1052015 |


Interest rate risk sensitivity analysis

Group Company 2015 2014 2015 2014 Increase/ Increase/ Increase/ Increase/ (Decrease) (Decrease) (Decrease) (Decrease) RM RM RM RM

Maturity analysis

based on undiscounted contractual payments:

Contractual Contractual Carrying interest cash Within After

RM RM RM RM

Group 2015

106 2015 |


Maturity analysis (cont’d)

Contractual Contractual Carrying interest cash Within After

RM RM RM RM

Group2014

Company 2015

2014

2015 |

33. Fair values

Fair value hierarchy

as level 3 as at reporting date.

Level 1 Level 2 Total RM RM RM

Group 2015

2014

108 2015 |

33. Fair values (cont’d)

Level 1 Level 2 Total RM RM RM

Company 2015

2014

34. Capital management

capital ratios in order to support its business and maximise shareholder value.

December 2015.

1092015 |

34. Capital management (cont’d)


complied with this requirement.

35. Commitments


Approved and contracted for:


110 2015 |

36. Contingent liabilities

Group 2015 2014 Secured RM RM

Company 2015 2014 Unsecured RM RM


1112015 |

As As previously restated reportedCompany RM RM

December 2015.

submit a regularisation plan within 12 months from 31 December 2015.

112 2015 |

40. General information

1132015 |

Title / location

Negeri Sembilan

Negeri Sembilan

Negeri Sembilan

Description /

Industrial land –3 storey industrial building with

/ production facility and

Construction in Progress

Condominum / Staff Accomodation

Industrial land

Industrial land

Industrial land

Industrial land

Industrial land

Tenure/ date of

Freehold land and building

Freehold Condominium

Freehold Condominium

Freehold land

Freehold land

Freehold land

Freehold land

Freehold land

Date of

the Company

30.06. 2008

25.01.2013

08.10.2013

21.02.2014

21.02.2014

10.03.2015

age of building(years)

6

8

18

1

1

1

1

1

Total land

areas

N/A

N/A

N/A

Total built-up

area

252.56

148.09

131.00

N/A

N/A

N/A

N/A

N/A

value as at31.12.2015

(RM)

114 2015 |

Substantial Shareholders

Direct Indirect Name Shareholdings % Shareholdings %

1 14.98 2 30.18 2 30.18

3 14.98 3 14.98

4 20.80 4 20.80 4 20.80

Notes:1.

2.

3.

4.

1152015 |

Directors’ Shareholdings

Direct Indirect Name Shareholdings % Shareholdings %

1 30.18 1 30.18 2 14.98

Notes:1.

2.

Voting rights : One vote per ordinary share

Distribution of Shareholdings

Holdings No. of Holders Total Holdings %

Total 2,736 709,130,100 100.00

116 2015 |

30 LARGEST SHAREHOLDERS

NO NAME NO. OF SHARES %

2015 |

NO NAME NO. OF SHARES %

118 2015 |

NOTICE IS HEREBY GIVEN that the 13th

to transact the following businesses:

the reports of the directors and auditors thereon.

2015.

of Association.

Articles of Association.

to determine their remuneration.

To refer to Explanatory

Note 1(Resolution 1)

(Resolution 2)

(Resolution 3)

(Resolution 4)

(Resolution 5)

(Resolution 6)

1192015 |

Company for the time being and that the Directors be and are hereby also empowered to obtain approval

account for the time being.

meeting after that date is required by law to be held; or the revocation or variation by ordinary resolution

(Resolution 7)

(Resolution 8)

120 2015 |

ESTHER SOON YOKE LENGTAN KEAN WAICompany Secretaries

Selangor Darul Ehsan29 April 2016

Notes:

or appoint proxy to attend and vote for his/her behalf.

shall not apply.

to be represented by each proxy.

8. Item 1 of the Agenda

1212015 |

9. Ordinary Resolutions 5 & 6

and

and carried out their professional duties in the best interest of the Company and shareholders.

10. Ordinary Resolution 7

11. Ordinary Resolution 8

122 2015 |

PROXY FORM

EFFICIENT E-SOLUTIONS BERHAD

No. Resolutions For Against

NOTES

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