Annual Report 2009
Nextnation Communication Berhad (660055-H)
Nextnation Communication Berhad(660055-H)
Corporate OfficeUnit 909 Block F Phileo Damansara One, No. 9, Jalan 16/11, 46350 Petaling Jaya, Selangor Darul Ehsan, Malaysia.
Tel : +603 7494 4839 Fax : +603 7494 4836
Research & Development Officec/o NTT MSC Sdn Bhd. No. 43000 Jalan APEC, 63000 Cyberjaya, Selangor Darul Ehsan, Malaysia
Tel : +603 8311 2000 Fax : +603 8311 2090
www.nextnationnet.com
Nextnation C
omm
unication Berhad
(660055-H)
Annual R
eport 2009
Annual Report 2009
�
CONTENTS
CorporateInformation 2
GroupStructure 3
Directors’Profile 4
Management’sDiscussion 6
StatementOnCorporateGovernance 8
AuditCommitteeReport 13
StatementOnInternalControl 18
Directors’ResponsibilityStatementInRelationToTheFinancialStatements 20
OtherComplianceInformation 21
ReportandFinancialStatements 22
ListofProperties 70
AnalysisofShareholdings 71
NoticeofAnnualGeneralMeeting 73
ProxyForm enclosed
Annu
al Report 2009
�
Annual Report 2009
�
BOARD OF DIRECTORSTeyPorYee Chief Executive Officer/Managing DirectorSeePohYee Executive DirectorYapSiokTeng(F) Independent Non-Executive DirectorFuLitFung Independent Non-Executive DirectorLeouThiamLai Independent Non-Executive DirectorUngkuA.RazakBinUngkuA.Rahman Independent Non-Executive Director
AUDIT COMMITTEE RESEARCH & DEVELOPMENT OFFICEYapSiokTeng(F)Chairperson NextnationNetworkSdnBhdFuLitFung c/oNTTMSCSdnBhdLeouThiamLai No.43000JalanAPEC 63000CyberjayaNOMINATION COMMITTEE SelangorDarulEhsanFuLitFungChairman Tel:+60383112000YapSiokTeng(F) Fax:+60383112090
REMUNERATION COMMITTEE AUDITORSYapSiokTeng(F)Chairperson Messrs.SJGrantThornton(AF:0737)TeyPorYee Level11-1,FaberImperialCourtFuLitFung JalanSultanIsmail 50250KualaLumpurCOMPANY SECRETARIES Tel:+60326924022ChuaSiewChuan Fax:+60327325119(MAICSANo.0777689) SHARE REGISTRARTanAiNing PFARegistrationServicesSdnBhd(MAICSANo.7015852) Level17,TheGardensNorthTower MidValleyCityREGISTERED OFFICE LingkaranSyedPutraLevel7,MenaraMilenium 59200KualaLumpurJalanDamanlela Tel:+60322643883PusatBandarDamansara Fax:+60322821886DamansaraHeights50490KualaLumpur PRINCIPAL BANKERSTel:+60320849000 MalayanBankingBerhadFax:+60320949940 HSBCBankMalaysiaBerhad CIMBBankBerhadCORPORATE OFFICEUnit909,BlockFPhileoDamansaraOne STOCK EXCHANGE LISTINGNo. 9, Jalan 16/11 Bursa Malaysia Securities Berhad –46350PetalingJaya ACEMarket SelangorDarulEhsanTel:+60374944839Fax:+60374944836
Corporate InformatIon
Annu
al Report 2009
�
Annual Report 2009
�
Group StruCture
NextnationCommunication
Berhad(Malaysia)
OzuraSdn Bhd
(Malaysia)100%
NextnationCollections
Sdn Bhd(Malaysia)
100%
KotamasEdaran
Sdn Bhd(Malaysia)
100%
TaffuMedia
Sdn Bhd(Malaysia)
100%
DubaitechMarketingSdn Bhd
(Malaysia)100%
NextnationQahaar
Venture Pte Ltd(Singapore)
100% QahaarInfracomPte Ltd
(Singapore)100%
QahaarTelecomsPte Lted
(Singapore)20%
QahaarTelecomsSdn Bhd
(Malaysia)100%
NextnationInteractiveSdn Bhd
(Malaysia)100%
PudongOverseas
Capital Sdn Bhd(Malaysia)
100%
DivamasPromotions
Sdn Bhd(Malaysia)
100%
NextnationServicesSdn Bhd
(formerly known asGang Media Sdn Bhd)
(Malaysia)100%
PTNextnation
Prisma(Indonesia)
80%
Usape NelsonWirelessSdn Bhd
(Malaysia)100%
GodynamicInvestments
Limited(BVI)51%
VisionPhoenix
Group Limited(BVI)100%
SiamTouchWireless
Ltd(Thailand)
49%
PT SemestaTirta Antara
Raya(Indonesia)
84%
PT FlowerStar
Media(Indonesia)
84%
CodeWirelessPte Ltd
(Singapore)100%
ElasitasTechnologies
Limited(Indonesia)
62%
NextnationMobitech
India Pte Ltd(India)99%
OzuraPte Ltd
(Singapore)100%
PT ElasitasMultiKreasi
(Indonesia)97%
Vinamob VentureCompanyLimited
(Vietnam)100%
Nextnation NetworkSdn Bhd
(Malaysia)100%
Nextnation TechcitySdn Bhd
(Malaysia)100%
Annu
al Report 2009
�
Annual Report 2009
�
DIreCtorS’ profIle
TEY POR YEEChief Executive Officer/Managing Director
TeyPorYee,33,aMalaysian,wasappointedastheChiefExecutiveOfficer/ManagingDirectorofNextnationCommunicationBerhad ('Nextnation' or 'Company') on5May2005. He is oneof the core foundersofNextnationgroupofcompanies ('NextnationGroup'or 'Group').HeobtainedhisBachelorofCommercedegree,majoringinBusinessAdministrationandFinance,fromtheUniversityofManitoba,Canadain1998.
PriortothefoundingofNextnationGroup,hewasashareholder,directorandseniorconsultanttoLiloMediaSdnBhd('Lilo'),acompanyengagesinresearch,designanddevelopmentofdatabaseandsystemintegrationactivities,untilhedisposedoffhisinterestatLiloinMay2004.AtLilo,hemanagedtogrowhisnetworkandexpertise,which ledhim to incorporate theNextnationGroup,enhancedshareholders'valueandsteeredthelistingofNextnationontheMESDAQMarket(nowknownasACEMarket)ofBursaMalaysiaSecuritiesBerhad.Inaddition,hisextensiveexperienceinelectronicmarketingande-commerceinfrastructurebuildinghasenabledhimtotapintomanybusinessopportunitiesandthatledtothesuccessofmanycompanies.
Presently,he sits as amemberon theRemunerationCommitteeof theCompany. Hedoesnotholdanydirectorshipontheboardofotherpubliclistedcompanies.
SEE POH YEEExecutive Director
SeePohYee,33,aMalaysian,wasappointedasanExecutiveDirectorandGroupChiefTechnologyOfficerofNextnationon5May2005.HeisalsooneofthecorefoundersoftheGroup.HeobtainedhisBachelorofEngineeringdegree,majoringinComputerSciencefromtheUniversityofManitoba,Canadain1998.
HebeganhiscareeratLiloasaChiefTechnologyOfficerwherehismainresponsibilitywastodesignanddeveloplarge-scaleapplicationsandsystems.Now,intheGroup,heisresponsibleforthearchitecturaldesignofMINDCEPplatform,SOHOMOBILE,mCommerce-SuitandSMSJET,andleadingateamofsystemengineerstoperformsystemintegrationwithallcellularcommunications.Inthepastfour(4)years,hehassuccessfullybuiltupateamofknowledgeworkersandledtheGroupintothetechnologyage.Byembracingtheopensource concept, hehashelped theGroup to reduce significant cost of operations. In thesepast four (4)years,hisportfolioincludesprojectmanagement,systemdesignandsoftwaredevelopmentespeciallyinthefieldofmobileandinternettechnology.Hisvastexperienceinsystemengineering,applicationdesignandinformation technology, in-depthknowledgeandhighlycompetent skills inopen sourceplatformhas ledtheGroup to shine in the industry through the successfuldevelopmentand implementationofMINDCEP
platform,SMSJETandmCommerce-Suit.
Hedoesnotholdanydirectorshipontheboardofotherpubliclistedcompanies.
YAP SIOK TENG (F)Independent Non-Executive Director
YapSiokTeng,49,aMalaysian,wasappointedasanIndependentNon-ExecutiveDirectorofNextnationon5May2005.SheisafellowmemberoftheAssociationofCharteredCertifiedAccountantsandtheMalaysianInstituteofAccountants.Currently,sheispracticingaccountantinherownfirm,Yap&Associates,whichwassetupinOctober1994.Priortothat,shehasmorethanten(10)yearsofworkingexperienceinthefieldofaudit,accountancy,taxation,generalmanagementandcorporateadvisory.
She is the Chairperson of the Audit Committee and the Remuneration Committee, and a member of theNominationCommitteeof theCompany.Shedoesnotholdanydirectorshipontheboardofotherpubliclistedcompanies.
FU LIT FUNGIndependent Non-Executive Director
FuLitFung,40,aMalaysianwasappointedasan IndependentNon-ExecutiveDirectorofNextnationon
Annu
al Report 2009
�
Annual Report 2009
�
24 March 2006. He is a graduate from Monash University, Melbourne, Australia. He began his careerwithYeoHiapSeng(Singapore)in1988andwasattachedtoanaccountingfirmin1992beforehejoineda multinational company in 1993. Prior to his current position, he was a Finance and AdministrationManager of BASIS Corporation Sdn Bhd, from 1999 to 2004. He is currently an executive director of aprivatelimitedcompanywhoseprincipalbusinessesaredealinginITgadgetsandaccessories,photographyequipmentandaccessoriesandalsoprovisionofhigh-endsecuritysystemsforlocalandinternationalmarkets.
Mr.FucurrentlysitsastheChairmanoftheNominationCommittee,andamemberoftheAuditCommitteeandtheRemunerationCommitteeoftheCompanyrespectively.Hedoesnotholdanydirectorshipontheboardofotherpubliclistedcompanies.
LEOU THIAM LAIIndependent Non-Executive Director
LeouThiamLai,53,aMalaysianwasappointedasanIndependentNon-ExecutiveDirectoroftheCompanyon8March2007.HegraduatedfromTunkuAbdulRahmanCollege,KualaLumpur.Upongraduation,hebeganhiscareerwithAijefiri,Siva.HengandMonteirountil1981andinBaharomHamdanfrom1981to1984.UponobtainingapprovalforhisAuditLicensefromtheTreasuryDepartmentofMalaysia,heestablishedLeou&Associates,CharteredAccountantsin1988,inwhichheremainsapartner.HeisamemberoftheMalaysianInstituteofAccountants,afellowmemberofTheCharteredAssociationofCertifiedAccountants(UK)andafellowmemberoftheMalaysianInstituteofTaxation.
MrLeouisamemberoftheAuditCommitteeoftheCompany.ApartfromservingasanIndependentNon-ExecutiveDirectoroftheCompany,heisalsoaDirectorofDeGemBerhad,I-PowerBerhad,UnitedBintangBerhadandRamuniaHoldingsBerhadrespectively,beingcompanieslistedontheBursaMalaysiaSecuritiesBerhad (BursaSecurities),andBerjayaHoldings (HK)Limited,acompany listedon theHongKongStockExchange.
UNGKU A. RAZAK BIN UNGKU A. RAHMANIndependent Non-Executive Director
UngkuA.Razak,54,aMalaysianwasappointedasanIndependentNon-ExecutiveDirectoroftheCompanyon2June2008.HegraduatedfromCranfieldSchoolofManagement,Cranfield,England,holdingtheMastersofBusinessAdministration.HebeganhiscareerwithESSOMalaysiaSdnBhdin1978,andwasalsoattachedtoTheKualaLumpurStockExchangeGroupofCompanies,nowknownasBursaMalaysiafor20years.HewastheChiefInformationOfficerofK&NKenangaHoldingsBerhadfrom2005to2007.
MrUngkudoesnotholdanydirectorshipontheboardofotherpubliclistedcompanies.
Conflict of Interest and Family Relationships with Any Director and/or Major ShareholderNoneoftheDirectorshaveanyconflictofinterestwiththeCompany.BesidesMr.TeyPorYee,whoisthebrotherofMr.TeyPorChen,amajorshareholderof theCompany,noneof theotherdirectorshas familyrelationshipwithanydirectorand/ormajorshareholder.
Convictions for Offences (within 10 years, other than traffic offences)NoneoftheDirectorshaveanyconvictions.
Securities Held in the Company and its SubsidiariesThedetailsaredisclosedintheDirector'sReportonpage23ofthisAnnualReport.
DIreCtorS’ profIle
(cont’d)
Annu
al Report 2009
�
Annual Report 2009
�
OnbehalfoftheBoardofDirectorsoftheNextnationCommunicationBhd,wearepleasedtopresenttheAnnualReportandtheAuditedFinancialStatementsforthefinancialyearended30April2009.
2008 had been a very tough and challenging year for many countries. The economy turmoil in US hadaffectedmanycountriesaroundtheworld.TherewasnoexceptionfortheGroup.Companiesstartedcostcutting,holdingbackonexpandingintootherbusinessandconcentrateinthecorebusiness.ItistoughyearfortheGroup;howeverweovercamethedifficultiesandobstacles.
FINANCIAL PERFORMANCEFor the financialyearended30April2008, theGrouprecordeda lossattributable toshareholdersof thecompanyamountedtoRM8.63million.HowevertheGroupmadeaturnaroundandpostedalossattributabletoshareholdersofthecompanywhichamountedtoRM6.71million.
CostsavingspractisedbytheGrouphasresultedintheimprovementofthefinancialperformance.TheoveralldeteriorationinrevenueandfinancialperformancewasmainlyattributabletooveralllowerdemandfortheCompany’sproductandservicesasaresultofthecurrentmarketcondition.
INDUSTRY TREND AND DEVELOPMENTTelecommunicationindustryasawholewasnotsparedbytheglobaleconomycrisis.However,theimpactisnotasstrongduetothisindustrybeingneededtoconnectpeopleallaroundtheworldtokeepthebusinessactivitiesgoing.Inshort,regardlessoftheglobaleconomycondition,thedemandoftelecommunicationisandwillremain,stronginthefuture.
RESEARCH AND DEVELOPMENTOvertheyears,theGrouphasalwaysemphasisedonResearchandDevelopment(“R&D”)byfocusingonupgradingitsplatformtosupportthelatestmobiledevices,andtoremaincompetitiveandfacilitatefuturegrowth,particularlyinthedynamicmobileindustryitoperatesin.TheGroupisverymuchfocusedonR&Dactivities in the development of new mobile multimedia technologies within the shores of Malaysia andregionally.Forthefinancialyearended30April2009,theGrouphadinvestedatotalamountofapproximatelyRM5.3millionintoR&Dactivities.
FUTURE PROSPECTSTheGroupwillcontinue topenetrate into theexistingmarket,andalsoexploreopportunitiesbyusing itsexpertiseandbusinessnetworktoexpandintonewones.TheGroupwillcontinuetoemphasiseoninvestmentintheareaofR&Dofnewtechnologiesintheplatformandmobilecontentbusiness.
Weareoptimistic that theGroup is able tomaintaingood results in thenext2quarters.TheGroupwillconcentrateonitscorebusiness,inthemeantimealsoexploreintonewbusinessestobringtheGroupintogreaterheights.
CORPORATE SOCIAL RESPONSIBILITYWhile focusing on our business and strengthening the Group performance, we have not forgotten ourcorporatesocialresponsibilityforourcommunity.Wehaveorganisedteambuildingtrainingtostrengthentherelationshipandbondamongtheemployees.Thisistoprovideaharmoniousenvironmentfortheemployeestoworkin.
In addition, the Group had also share festive moments by celebrating Deeparaya with the less fortunateindividualsinthespiritofmuhibbahandtogethernessatPPRKampungLimau.
manaGement’S DISCuSSIon
Annu
al Report 2009
�
Annual Report 2009
�
WORD OF APPRECIATIONTheManagementwishestoextendoursinceregratitudeandappreciationtotheBoardmemberandstafffortheirhardwork,commitmentandloyalty.
Thankyou!
The Management Team of Nextnation Communication Berhad
manaGement’S DISCuSSIon
(cont’d)
Annu
al Report 2009
�
Annual Report 2009
�
Statement on Corporate GovernanCe
TheBoardofDirectors('Board')iscommittedtoensurethatthehigheststandardsofCorporateGovernancearepractised throughout theGroupas a fundamentalpartofdischarging itsduties and responsibilities toprotectandenhanceshareholders'valueandsupporttheGroup'scontinuedgrowthandsuccess.TheBoardcommitstoobserveandpracticetowardsensuringfullapplicationoftheprinciplesofcorporategovernanceassetoutinPart1oftheMalaysianCodeonCorporateGovernance('theCode')andhad,totheirbestability,compliedwiththebestpracticesassetoutinPart2oftheCode.
DIRECTORS
Board CompositionTheBoardconsistsofsix(6)members;comprisingoftwo(2)ExecutiveDirectorsandfour(4)IndependentNon-ExecutiveDirectors.Morethanonethird(1/3)oftheBoardcomprisesofIndependentNon-ExecutiveDirectors.TheBoardisoftheopinionthatthecompositionoftheBoardfairlyreflectsabalanceofexecutiveandnon-executivedirectorstoensurethattheinterestofnotonlytheGroup,butalsothestakeholdersandthepublicingeneralarerepresentedinallbusinessstrategiesformulationandadoption.
Indeed,theBoardismade-upofdirectorswhopossesstherelevantexperience,knowledgeandskillsinrunningtheday-to-dayoperationsoftheGroupbyencouragingproactivediscussionduringtheBoardmeetingsandvariousmeetingsofBoardCommitteesinthestrategicdecision-makingprocess.
TheprofileofeachDirectorispresentedonpages4to5ofthisAnnualReport.
Duties and Responsibilities of the BoardTheBoardtakesfullresponsibilityfortheperformanceoftheGroup.TheBoard'sdutiesandresponsibilitiesincludedeterminingtheGroup'soverallstrategicplans,performingperiodicreviewofbusinessandfinancialperformance,engaginginsuccessionplanning,andadoptingpracticalriskmanagementandinternalcontrolsfortheGroup.Asatthedateofthisreport,theBoardisassessingthepotentialcandidatesforthepositionofChairmanoftheBoard.
TheroleandresponsibilityoftheChiefExecutiveOfficer/ManagingDirectorisdistinct,separateandclearlydefined.TheChiefExecutiveOfficer/ManagingDirector,assistedbytheDirectorshasoverallresponsibilityinworkingtowardsachievingstrategicgoalsandobjectivesfortheGrouptogetherwiththeimplementationofGroup'spolicies,corporatestrategiesanddecisions.
TheBoardcompriseshighlyreputableandprofessionalpersonsofcaliber,creditabilityandhasthenecessaryskillsandexperiencetobringanindependentjudgement.Withtheircombinedexperienceandknowledgetheyprovidesoundadviceand impartial judgement for thebenefitsof theCompany, itsshareholdersandstakeholders.MsYapSiokTenghasbeenidentifiedbytheBoardtobetheSeniorIndependentNon-ExecutiveDirectoroftheBoardtowhomconcernsmaybeconveyed.
Appointments to the BoardInordertocomplywithgoodpracticefortheappointmentofnewdirectorsthroughaformalandtransparentprocedure, theBoardhas setupaNominationCommitteewhichcomprisedexclusivelyofnon-executivedirectors,toevaluateandrecommendcandidatesfordirectorshiptotheBoard.
Re-election of DirectorsInaccordancewiththeCompany'sArticlesofAssociation(Article83),onethird(1/3)ofthedirectorsshallretirebyrotationateachAnnualGeneralMeetingprovidedalwaysthatalldirectors(exceptfortheManagingDirector) shall retire fromofficeat leastonce in three (3)years.Thedirectors retiring fromofficeshallbeeligibleforre-electionbytheshareholders.Thedirectorstoretireshallbethedirectorswhohavebeenlongestinofficesincetheirlastelection.
Annu
al Report 2009
�
Annual Report 2009
�
Board Meetings and Supply of Information to the BoardTheBoardmeetsat least four (4) timesand,asandwhen required,during the financialyear to,amongstothers,reviewandapprovethequarterlyfinancialstatementsandtheannualauditedfinancialstatements.TheagendafortheBoardMeetings,togetherwithappropriatereportsandinformationontheCompany'sbusinessoperations,andproposalpapersfortheBoard'sconsiderationarecirculatedtoallthedirectorspriortothemeetings,insufficienttimesothatalldirectorsaregiventimetoprepare,obtainadditionalinformationorclarificationpriortothemeetingtoensureasmoothproceedingofeachmeeting.
TheproceedingsandresolutionsreachedateachBoardMeetingaredocumentedintheminutesandsignedbyChairmanofthenextBoardMeeting.BesidesBoardMeetings,theBoardexercisescontrolonmattersthatrequireBoard'sapprovalthroughcirculationofDirectors'Resolutions.Theseminutesarekeptattheregisteredoffice.
AlldirectorshaveaccesstoallinformationwithintheCompanyaswellastheadvicesandservicesofthecompany secretarywhetherasa fullBoardor in their individualcapacity toassist them in theirdecisionmaking.Wherenecessary,thedirectorsmayengageindependentprofessionalsattheCompany'sexpenseonspecializedissuestoenablethedirectorstodischargetheirdutieswithadequateknowledgeonthemattersbeingdeliberated.
TheBoardheldfive(5)meetingsduringthefinancialyearended30April2009andtheattendanceatthemeetingswereasfollows:
Name Designation Attendance
TeyPorYee ChiefExecutiveOfficer/ManagingDirector 5/5
SeePohYee ExecutiveDirector 5/5
YapSiokTeng IndependentNon-ExecutiveDirector 5/5
FuLitFung IndependentNon-ExecutiveDirector 5/5
LeouThiamLai IndependentNon-ExecutiveDirector 5/5
UngkuA.RahmanBinUngkuA.Razak IndependentNon-ExecutiveDirector 3/5
Training of DirectorsAlltheDirectorshaveattendedtheMandatoryAccreditationProgrammeprescribedbyBursaSecuritiesfordirectorsofpubliclistedcompanies.Thedirectorswillcontinuetoattendrelevanttrainingsandeducationprogrammes inorder tokeep themselvesabreastof the latestdevelopmentanddischarge theirdutiesandresponsibilitiesmoreeffectively.
Forthefinancialyearended30April2009,theDirectorsoftheCompanyhaveattendedthefollowingtrainingprogrammes:-
Mr.TeyPorYeeMr.SeePohYeeMr.FuLitFung
12 – 14 December 2008 BuildaPositiveMindinLeadershipCommunicationandTeamSpiritTraining
Ms.YapSiokTeng(F)
2September2008 2009BudgetTalkbyMalaysianInstituteofTaxation
Statement on Corporate GovernanCe
(cont’d)
Annu
al Report 2009
�0
Annual Report 2009
��
Mr.LeouThiamLai
19&20August2008 NationalTaxConference2008
3September2008 NationalSeminaronTaxation2008
29October2008 SSME-LodgmentBriefing
17March2009 TaxationSeminar2009
UngkuA.RahmanBinA.Razak
23&24September2008 MandatoryAccreditationProgrammeforDirectorsofPublicListedCompanies
BOARD COMMITTEESTheBoardhasestablishedthefollowingcommittees:
a) Audit CommitteeThetermsofreferenceandactivitiesduringthefinancialyearoftheAuditCommitteearesetoutundertheAuditCommitteeReportonpages13to17ofthisAnnualReport.
b) Remuneration CommitteeTheRemunerationCommitteecomprisesofthefollowingmembers:
Name Designation
YapSiokTeng(F)(Chairperson) IndependentNon-ExecutiveDirector
TeyPorYee ChiefExecutiveOfficer/ManagingDirector
FuLitFung IndependentNon-ExecutiveDirector
The Remuneration Committee is responsible for assessing the remuneration packages of the ExecutiveDirectors,whichisstructuredtolinkwiththecorporateandindividualperformance.FortheNon-ExecutiveDirectors,theremunerationwillbepackagedtoreflecttheexperienceandlevelofresponsibilitiesundertaken.TherespectiveExecutiveDirectorswouldabstainfromparticipatingindecisionsregardingtheirrespectiveremunerationpackage.
Subjecttoshareholders'approvalingeneralmeeting,theBoardasawholedeterminesthelevelofremunerationof thenon-executivedirectorsof theCompany. The remunerationof thenon-executivedirectorswillbereviewedinordertotakeintorecognitionoftheirprincipaldutiesandresponsibilitiesundertheCode.
Director's RemunerationThe aggregate remuneration of the Directors of the Company for the financial year under review is asfollows:
Executive Directors RM
Non-Executive DirectorsRM
TotalRM
Fee - 94,000 94,000
Salaryandotheremoluments 684,000 - 684,000
Bonusandbenefits-in-kind - - -
Total 684,000 94,000 778,000
Statement on Corporate GovernanCe
(cont’d)
Annu
al Report 2009
�0
Annual Report 2009
��
ThenumberofdirectorsoftheCompanywhosetotalremunerationsduringthefinancialyearunderreviewthatfallwithinthefollowingbandsareasfollows:
Range of Remuneration Number of Executive Directors Number of Non-Executive Directors
RM50,000andbelow - 4
RM50,001 – RM100,000 - -
RM100,001 – RM150,000 - -
RM150,001 – RM200,000 - -
RM200,001 – RM250,000 - -
RM250,001 – RM300,000 2 -
Total 2 4
The only area of non-compliance with the Code is the disclosure of remuneration of each Director. TheBoardbelievesthatthisinformationwillnotaddsignificantlytotheunderstandingandtheevaluationoftheCompany’sGovernance.
c) Nomination CommitteeTheNominationCommitteecomprisesofthefollowingmembers:
Name Designation
FuLitFung(Chairman) IndependentNon-ExecutiveDirector
YapSiokTeng IndependentNon-ExecutiveDirector
ThemainresponsibilitiesofthisCommitteearetoproposeandrecommendnewcandidatestotheBoardonanon-goingbasis,ifnecessaryandtoannuallyreviewthemixofskillsandexperiencesandotherqualities,includingcorecompetencieswhichthedirectorsshouldpossessinordertoensurethattheeffectivenessandefficiencyoftheBoard.
ACCOUNTABILITY AND AUDIT
a) Financial ReportingTheBoardhavetakenreasonablestepstoprovideafairandbalanceassessmentoftheCompany'sfinancialperformanceandprospects.Inthisrespect,theAuditCommitteeassiststheBoardwiththeoverseeingoftheCompany'sfinancialreportingprocessandthequalityofthefinancialreporting.
b) Internal ControlTheBoardrecognizestheimportanceofmaintainingasoundsystemofinternalcontrolwhichcoverstheriskmanagement, financial,organizational,operationalandcompliancecontrols.TheBoardacknowledges itsresponsibilityandaccountabilityfortheGroup'ssystemofinternalcontrolandforreviewingtheeffectiveness,adequacyandintegrityofthissystem.
InformationontheGroup'sinternalcontrolispresentedintheStatementofInternalControlonpages18to19ofthisAnnualReport.
Statement on Corporate GovernanCe
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
c) Relationship with AuditorsThe Group's independent external auditors hold an essential role for the shareholders by enhancing thereliabilityoftheGroup'sfinancialstatementsandprovidingassuranceofthereliabilitytousersofthefinancialstatements. The Company has always maintained a formal and transparent relationship with its externalauditorsinseekingprofessionaladviceandensuringcompliancewiththeaccountingstandardsinMalaysia.
SHAREHOLDERS
a) Relationship with ShareholdersTheBoardrecognizestheneedfortransparencyandaccountabilitytotheCompany'sshareholdersaswellasregularcommunicationwithitsshareholders,stakeholdersandinvestorsontheperformanceandmajordevelopmentsintheCompany.TheCompanyensuresthattimelyreleasesofthequarterlyfinancialresults,press releasesandcorporateannouncementsaremade to its shareholdersand investors,whichareclear,unambiguous,succinct,accurateandcontainssufficientandrelevantinformationtoenableshareholdersandinvestorstomakeinformedinvestmentdecisions.
b) Annual General Meeting ('AGM')
The AGM is the principal forum for dialogue with shareholders. At the Company's AGM, shareholdersparticipationisalwaysencouragedandwelcomed.Itisausefulopportunityforthedirectorstocommunicateface to facewithshareholdersand topresent theCompany'sbusinessoperations,performanceand futureplans. The directors are prepared to answer queries and to receive feedback from the shareholders. Theexternal auditors are also present to provide their professional and independent clarification on issues ofconcernraisedbytheshareholders,ifany.
NoticeoftheAGMandAnnualReportaresentoutwithsufficientnoticebeforethedateofthemeeting.
Where Extraordinary General Meetings are held to obtain shareholders' approval on certain business orcorporateproposals,comprehensivecircularstoshareholderswouldbesentwithinprescribeddeadlinesinaccordancewithregulatoryandstatutoryprovisions.
Statement on Corporate GovernanCe
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
auDIt CommIttee report
TheAuditCommitteewas established to act as aCommitteeof theBoardofDirectors ('Board')with theobjective of assisting the Board in the areas of corporate governance, systems of internal controls, riskmanagementandfinancialreportingoftheGroupto:
evaluatethequalityoftheauditsperformedbytheinternalandexternalauditors;
provideassurancethatthefinancialinformationpresentedbythemanagementisrelevant,reliableandtimely;
overseecompliancewithlawsandregulationsandobservanceofapropercodeofconduct;and
determinethequality,adequacyandeffectivenessoftheGroup'scontrolenvironment.
Composition and MeetingsThemembersoftheAuditCommittee,attendanceateachAuditCommitteeMeetingduringthefinancialyearended30April2009areasfollows:
Name Designation Status of Directorship Attendance
YapSiokTeng(F) Chairperson IndependentNon-ExecutiveDirector 5/5
FuLitFung Member IndependentNon-ExecutiveDirector 5/5
LeouThiamLai Member IndependentNon-ExecutiveDirector 5/5
Terms of Reference
Composition of membersThe Board shall appoint the Audit Committee members from amongst themselves, comprising no fewerthanthree(3)non-executivedirectors.ThemajorityoftheAuditCommitteemembersshallbeindependentdirectors.
In this respect, the Board adopts the definition of “independent director” as defined under the Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) for the ACE Market (“ACE LR”).
Allmembersof theAuditCommitteeshallbefinancially-literateandat leastone(1)memberof theAuditCommitteemustbe:-
• amemberoftheMalaysianInstituteofAccountant(“MIA”);or
• ifheisnotamemberofMIA,hemusthaveatleastthree(3)yearsofworkingexperienceand:
(i) hemusthavepassedtheexaminationsspecifiedinPartIoftheFirstScheduleoftheAccountantsAct1967;or
(ii) hemustbeamemberofoneoftheassociationsoftheaccountantsspecifiedinPartIIoftheFirstScheduleoftheAccountantsAct1967;or
• fulfilssuchotherrequirementsasprescribedorapprovedbyBursaSecurities.
NoalternatedirectoroftheBoardshallbeappointedasamemberoftheAuditCommittee.
ThetermofofficeandperformanceoftheAuditCommitteeandeachofitsmembersshallbereviewedbytheBoardatleastonceeverythree(3)yearstodeterminewhethersuchAuditCommitteeandmembershavecarriedouttheirdutiesinaccordancewiththeirtermsofreference.
Retirement and resignation IfamemberoftheAuditCommitteeresigns,dies,orforanyreasonceasestobeamemberresultinginnon-compliancetothecompositioncriteriaasstatedinparagraph1above,theBoardshallwithinthree(3)monthsoftheeventappointsuchnumberofthenewmembersasmayberequiredtofillthevacancy.
Annu
al Report 2009
��
Annual Report 2009
��
auDIt CommIttee report
Chairman ThemembersoftheAuditCommitteeshallelectaChairmanfromamongsttheirnumberwhoshallbeanindependentdirector.
In theabsenceof theChairmanof theAuditCommittee, theothermembersof theAuditCommitteeshallamongstthemselveselectaChairmanwhomustbeindependentdirectortochairthemeeting.
Secretary TheCompanySecretary shallbe theSecretaryof theAuditCommitteeandasa reportingprocedure, theMinutesshallbecirculatedtoallmembersoftheBoard.
MeetingsTheAuditCommittee shallmeet regularly,withduenoticeof issues tobediscussed,and shall record itsconclusionsindischargingitsdutiesandresponsibilities.Inaddition,theChairmanmaycallforadditionalmeetingsatanytimeattheChairman’sdiscretion.
Upontherequestoftheexternalauditor,theChairmanoftheAuditCommitteeshallconveneameetingoftheAuditCommitteetoconsideranymattertheexternalauditorbelievesshouldbebroughttotheattentionofthedirectorsorshareholders.
NoticeofAuditCommitteemeetingsshallbegiven toall theAuditCommitteemembersunless theAuditCommitteewaivessuchrequirement.
TheChairmanoftheAuditCommitteeshallengageonacontinuousbasiswithseniormanagement,suchastheChairman,theChiefExecutiveOfficer,theFinanceDirector,theheadofinternalauditandtheexternalauditorsinordertobekeptinformedofmattersaffectingtheCompany.
TheFinanceDirector,theheadofinternalauditandarepresentativeoftheexternalauditorsshouldnormallyattendmeetings.OtherBoardmembersandemployeesmayattendmeetingsupontheinvitationoftheAuditCommittee.TheAuditCommitteeshallbeabletoconvenemeetingswiththeexternalauditors,theinternalauditorsorboth,withoutexecutiveBoardmembersoremployeespresentwheneverdeemednecessaryandatleasttwiceayearwiththeexternalauditors.
Questions arising at any meeting of the Audit Committee shall be decided by a majority of votes of thememberspresent,andin thecaseofequalityofvotes, theChairmanof theAuditCommitteeshallhaveasecondorcastingvote.
MinutesMinutesofeachmeetingshallbekeptattheregisteredofficeanddistributedtoeachmemberoftheAuditCommitteeandalsototheothermembersoftheBoard.TheAuditCommitteeChairmanshallreportoneachmeetingtotheBoard.
TheminutesoftheAuditCommitteemeetingshallbesignedbytheChairmanofthemeetingatwhichtheproceedingswereheldorbytheChairmanofthenextsucceedingmeeting.
QuorumThe quorum for the Audit Committee meeting shall be the majority of members present whom must beindependentdirectors.
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
ObjectivesTheprincipalobjectivesof theAuditCommitteeare toassist theBoard indischarging its statutorydutiesandresponsibilitiesrelatingtoaccountingandreportingpracticesof theholdingcompanyandeachof itssubsidiaries.Inaddition,theAuditCommitteeshall:-
(a) evaluatethequalityoftheauditsperformedbytheinternalandexternalauditors;
(b) provide assurance that the financial information presented by management is relevant, reliable andtimely;
(c) overseecompliancewithlawsandregulationsandobservanceofapropercodeofconduct;and
(d) determinethequality,adequacyandeffectivenessoftheGroup'scontrolenvironment.
AuthorityTheAuditCommitteeshall,inaccordancewithaproceduretobedeterminedbytheBoardandattheexpenseoftheCompany,
(a) haveexplicitauthoritytoinvestigateanymatterwithinitstermsofreference,theresourcestodoso,andfullaccesstoinformation.Allemployeesshallbedirectedtoco-operateasrequestedbymembersoftheAuditCommittee.
(b) havefullandunlimited/unrestrictedaccesstoallinformationanddocuments/resourceswhicharerequiredtoperformitsdutiesaswellastotheinternalandexternalauditorsandseniormanagementoftheCompanyandGroup.
(c) obtainindependentprofessionalorotheradviceandtoinviteoutsiderswithrelevantexperiencetoattend,ifnecessary.
(d) havedirectcommunicationchannelswiththeexternalauditorsandperson(s)carryingouttheinternalauditfunctionoractivity(ifany).
wheretheAuditCommitteeisoftheviewthatthematterreportedbyittotheBoardhasnotbeensatisfactorilyresolvedresultinginabreachoftheACELR,theAuditCommitteeshallpromptlyreportsuchmattertoBursaSecurities.
Duties and Responsibilities ThedutiesandresponsibilitiesoftheAuditCommitteeareasfollows:-
(a) Toconsider theappointmentof theexternal auditor, theaudit feeandanyquestionof resignationordismissal;
(b) Todiscusswiththeexternalauditorbeforetheauditcommences,thenatureandscopeoftheaudit,andensureco-ordinationwheremorethanoneauditfirmisinvolved;
(c) Toreviewwiththeexternalauditorhisevaluationofthesystemofinternalcontrolsandhisauditreport;
(d) To review the quarterly and year-end financial statements of the Board, focusing particularly on –
• anychangeinaccountingpoliciesandpractices;
• significantadjustmentsarisingfromtheaudit;
• thegoingconcernassumption;and
• compliancewithaccountingstandardsandotherlegalrequirements.
(e) Todiscussproblemsandreservationsarisingfromtheinterimandfinalaudits,andanymattertheauditormaywishtodiscuss(intheabsenceofmanagement,wherenecessary);
auDIt CommIttee report
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
(f) Toreviewtheexternalauditor’smanagementletterandmanagement’sresponse;
(g) Todothefollowing,inrelationtotheinternalauditfunction:-
• reviewtheadequacyofthescope,functions,competencyandresourcesoftheinternalauditfunction,andthatithasthenecessaryauthoritytocarryoutitswork;
• reviewtheinternalauditprogrammeandresultsoftheinternalauditprocessand,wherenecessary,ensurethatappropriateactionsaretakenontherecommendationsoftheinternalauditfunction;
• reviewanyappraisalorassessmentoftheperformanceofmembersoftheinternalauditfunction;
• approveanyappointmentorterminationofseniorstaffmembersoftheinternalauditfunction;and
• takecognizanceofresignationsofinternalauditstaffmembersandprovidetheresigningstaffmemberanopportunitytosubmithisreasonsforresigning.
(h) To consider any related party transactions and conflict of interest situation that may arise within theCompanyorGroupincludinganytransaction,procedureorcourseofconductthatraisesquestionsofmanagementintegrity;
(i) Toreportitsfindingsonthefinancialandmanagementperformance,andothermaterialmatterstotheBoard;
(j) Toconsiderthemajorfindingsofinternalinvestigationsandmanagement’sresponse;
(k) Toverifytheallocationofemployees’shareoptionscheme(“ESOS”)incompliancewiththecriteriaasstipulatedintheby-lawsofESOSoftheCompany,ifany;
(l) Todeterminetheremitoftheinternalauditfunction;
(m) ToconsiderothertopicsasdefinedbytheBoard;and
(n) ToconsiderandexaminesuchothermattersastheAuditCommitteeconsidersappropriate.
Summary of ActivitiesThemainactivitiesoftheAuditCommitteeindischargingitsfunctionsanddutiesduringthefinancialyearended30April2009wereasfollows:
Reviewed with the external auditors the results of the audit, the audit reports and the managementletters;
Reviewed the unaudited quarterly financial statements of the Group and ensured compliance withapprovedaccountingstandards,otherlegalandregulatoryrequirements,beforerecommendingthemforBoard'sapproval;
Reviewed theaudited financial statementsof theGroupand theCompanyprior to submission to theBoardfortheirconsiderationandapproval;
ReviewedtheInternalAuditReportsonfindings,recommendationsandmanagementresponsestheretoandtoensurethatmaterialfindingsareadequatelyaddressedbyManagement.
Summary of Internal Audit FunctionTheAuditCommitteeissupportedbyanindependentandadequatelyresourcedinternalauditfunction.TheAuditCommitteeisawareofthefactthananindependentandadequatelyresourcedinternalauditfunctionisessentialtoassisttheAuditCommitteeinthedischargeofitsdutiesandresponsibilities.
TheGrouphasoutsourcedtheinternalauditfunctiontoBDOGovernanceAdvisorySdnBhdsince1August2006.BDOGovernanceAdvisorySdnBhdperformedauditandreviewalloperatingunitswithintheGroup,withemphasisonprincipalrisksareas.BDOGovernanceAdvisorySdnBhdadoptedariskbasedapproachtowardsplanningandconductofauditswhichispartlyguidedbytheCorporateRiskManagementframework.TheGrouphaschangedtheinternalauditfunctiontoSundar&Associatesfrom1June2009.Theirscopeofworkisaccordancewiththeinternalauditcharterisasfollows:
auDIt CommIttee report
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
Adequate,having regard to theobligationsof theGroupand itsdirectors tocomply to theSecuritiesComission(“SC”)Guidelinesandotherrelevantlegalandregulatoryrequirements;
SufficienttoenabletheGroup’sdirectortomakeproperassessmentofthefinancialpositionandprospectsoftheoverallNextnationGroup.
Identifyvariousopportunitiestoenhancetheexistingsystemsofinternalcontrolandprocessefficiency,andformulaterecommendationsforimprovements;
ProvideanopinionontheoverallstateofinternalcontroloftheGroup
TheinternalauditwillnotbeafinancialstatementsauditpursuanttotheCompaniesAct,1965andwillnotinvolveverificationofthefinancialstatementsnorrenderingandopiniononthefinancialstatements.
FurtherdetailsoftheactivitiesoftheinternalauditfunctionaresetoutintheStatementofInternalControlonpages18to19ofthisAnnualReport.
auDIt CommIttee report
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
TheMalaysiaCodeofCorporateGovernancerequireslistedcompaniestomaintainasoundsystemofinternalcontrols to safeguard shareholders’ investment and theGroup’s assets. TheListingRequirementsofBursaMalaysiarequiresdirectorsoflistedcompaniestoincludeastatementinannualreportonthestateoftheirinternalcontrol.TheBursa’sStatementinInternalControl:GuidanceforDirectorsofPublicListedCompanies(“Guidance”)providesguidanceforcompliancewiththeserequirements.SetoutbelowistheBoard’sInternalControlStatement,whichhasbeenpreparedinaccordancewiththeGuidance.
Responsibilities for Risk and Internal ControlsThe Board is responsible for establishing an appropriate control environment and framework on riskmanagement, organizational, financial and operational controls including reviewing of its adequacy andintegrity.
The Board recognizes the importance of sound internal controls and risk management practices to goodcorporategovernance.TheBoardaffirmsitsoverallresponsibilityfortheGroup’ssystemsofinternalcontrolsand riskmanagement,and for reviewing theadequacyand integrityof thosesystems. It shouldbenoted,however, that such system are designed tomanage rather than to eliminate the risk of failure to achievebusinessobjectives. Inaddition, it shouldbenoted thatanysystemcanprovideonlyreasonable,andnotabsolute,assuranceagainstmaterialmisstatementorloss.
Risk ManagementTheGroupmanagesriskonaday-to-daybasis.Asamatterofcourseinallbusinessdealingrisksareconsideredandappropriateactiontaken.
Duringtheyearunderreview,aspartofitscontinuouseffort,theboardappointedexternalconsultantstoreviewtheadequacyandintegrityofthesystemsofinternalcontrolsandrecommendopportunitiesforimprovement,wherenecessary.Theseareintendedtofurtherstrengthentheinternalcontrolframework.
BDOGovernanceAdvisorySdnBhd(“BDOGA”)wasappointedastheGroup’sinternalauditserviceprovider.BDOGAreviewedtheinternalcontrolsinthekeyactivitiesoftheGroup’sbusinessbasedonadetailedannualauditplanapprovedbytheAuditCommittee.Arisk-basedapproachwasadoptedandtheauditfindingsandreportwerereporteddirectlytotheAuditCommittee.
Thecostsincurredfortheinternalauditfunctioninrespectofthefinancialyearended30April2009amountedtoRM66,000.
Other Key Elements of Internal ControlsTheGroup’sotherkeyelementsofinternalcontrolareasfollows:
• Clearly defined delegation of responsibilities to the management and operating units, includingauthorizationlevelsforkeyaspectsofbusiness;
• Clearlydocumentedinternalpolicies,guidelines,proceduresandmanual,whichareupdatedfromtimetotime;
• Regularmeetingsareheldatoperationalandmanagementlevelstoidentifyandresolvebusiness,financial,operationalandmanagementissuedandaddressweaknessesandimproveefficiency;
• Detailedbudgetingandreportingofoperatingresults,balancesheetsandcashflowswithregularreviewbythemanagement;
• FinancialresultsarereviewedonaquarterlybasisbytheBoardandAuditCommittee;and
• InformalBoardandmanagementmeetingsatoperationallevelareheldduringthefinancialyearinordertoassessperformanceandcontrols.
Statement on Internal Control
Annu
al Report 2009
��
Annual Report 2009
��
CONCLUSIONTheBoardisoftheviewthattherewerenosignificantweaknessesinthecurrentsystemofinternalcontroloftheGroupthatmayhavematerialimpactontheoperationsoftheGroupforthefinancialyearended30April2009.TheBoardandthemanagementwillcontinuetotakenecessarymeasuresandongoingcommitmenttostrengthenandimproveitsinternalcontrolenvironmentandprocesses.
ThisstatementhasbeenreviewedbytheexternalauditorsincompliancewithRule15.26(b)oftheACELR.
ThisStatementismadeinaccordancewiththeresolutionoftheBoarddated29August2009.
Statement on Internal Control
(cont’d)
Annu
al Report 2009
�0
Annual Report 2009
��
ThisstatementispreparedasrequiredbytheACELR.
TheDirectorsarerequiredtopreparefinancialstatementswhichgiveatrueandfairviewofthestateofaffairsoftheGroupandtheCompanyasattheendofthefinancialyearandoftheresultsandthecashflowsoftheGroupandtheCompanyforthatyearthenended.
TheDirectorsconsiderthatinpreparingthefinancialstatements:
theGroupandtheCompanyhaveusedappropriateaccountingpoliciesandareconsistentlyapplied;
reasonableandprudentjudgementsandestimatesweremade;and
allapplicableapprovedaccountingstandardsinMalaysiahavebeenfollowed.
TheDirectorsareresponsibleforensuringthattheGroupandtheCompanymaintainaccountingrecordsthatdisclosewithreasonableaccuracythefinancialpositionoftheGroupandtheCompany,andwhichenablethemtoensurethatthefinancialstatementscomplywiththeCompaniesAct,1965.
The Directors have general responsibilities for taking such steps that appropriate systems are reasonablyavailabletothemtosafeguardtheassetsoftheGroupandtheCompany,andtopreventanddetectfraudandotherirregularitiesandmaterialmisstatements.Suchsystems,bytheirnature,canonlyprovidereasonableandnotabsoluteassuranceagainstmaterialmisstatement,lossorfraud.
DIreCtorS’ reSponSIbIlIty Statement InrelatIon to the fInanCIal StatementS
Annu
al Report 2009
�0
Annual Report 2009
��
Share BuybackTherewasnosharebuybackoftheCompany'ssharesduringthefinancialyear.
Options, Warrants or Convertible SecuritiesTherewerenooptions,warrantsorconvertiblesecuritiesexercisedduringthefinancialyearastheCompanyhasnotissuedanyoptions,warrantsorconvertiblesecurities.
American Depository Receipts (“ADR”) And Global Depository Receipts (“GDR”)
TheCompanydidnotsponsoranyADRandGDRduringthefinancialyear.
Imposition of Sanctions and/or PenaltiesTherewerenopublicsanctionsand/orpenaltiesimposedontheCompanyanditssubsidiaries,directorsormanagementbytherelevantregulatorybodiesduringthefinancialyearunderreview.
Non-audit Fee Paid to External AuditorsTherewasnonon-auditfeepaidtotheexternalauditorsforthefinancialyearended30April2009.
Profit Estimate, Forecast Or Projection Or Unaudited ResultsTheCompanydidnotissueanyprofitestimate,forecastorprojectionforthefinancialyear.
Therearenoprofitforecastandunauditedresultreleasedwhichdifferbytenpercent(10%)ormorefromtheauditedresultforthefinancialyearended30April2009.
Profit GuaranteeTherewasnoprofitguaranteegivenbytheCompanyduringthefinancialyearunderreview.
Material Contracts Or LoansTherewerenomaterialcontractsorloansenteredintobytheCompanyanditssubsidiariesinvolvingDirectors'andmajorshareholders.
Revaluation Policy On Landed PropertiesTheCompanydoesnothaveapolicyonrevaluationoflandedproperties.
Status of Utilisation of ProceedsThecompanyhasnotimplementedanycorporateexerciseproposalduringthefinancialyearended30April2009.
other ComplIanCe InformatIon
Annu
al Report 2009
��
Annual Report 2009
��
CONTENTSDirectors’Report 23
StatementbyDirectorsandStatutoryDeclaration 27
IndependentAuditors’Report 28
BalanceSheets 30
IncomeStatements 32
StatementsofChangesinEquity 33
CashFlowStatements 34
NotestotheFinancialStatements 36
Annu
al Report 2009
��
Annual Report 2009
��
TheDirectorsherebysubmittheirreporttogetherwiththeauditedfinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended30April2009.
Principal ActivitiesTheCompanyisprincipallyaninvestmentholdingcompany.TheprincipalactivitiesofthesubsidiariesaresetoutinNote14totheFinancialStatements.Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringthefinancialyear.
Financial Results
GroupRM
CompanyRM
Netlossforthefinancialyear (7,197,823) (474,531)
Attributableto:-EquityholdersoftheCompany (6,710,624) (474,531)
Minorityinterests (487,199) -
(7,197,823) (474,531)
DividendsNodividendhasbeenpaidordeclaredbytheCompanysincetheendofpreviousfinancialyear.TheDirectorsdonotrecommendanydividendinrespectofthecurrentfinancialyear.
Reserves and ProvisionsTherewerenomaterialtransferstoorfromreservesorprovisionsduringthefinancialyearotherthanthosedisclosedintheNotestotheFinancialStatements.
Issue of Shares and DebenturesTherewerenosharesordebenturesissuedduringthefinancialyear.
Information On The Financial StatementsBeforethefinancialstatementsoftheGroupandoftheCompanyweremadeout,theDirectorstookreasonablesteps:-
(a) to ascertain that actionhadbeen taken in relation to thewritingoff of baddebts and themakingofallowancefordoubtfuldebtsandsatisfiedthemselvesthatallknownbaddebtshadbeenwrittenoffandthatadequateallowancehadbeenmadefordoubtfuldebts;and
(b) toensurethatanycurrentassetswhichwereunlikelytoberealisedintheordinarycourseofbusinessincludingtheirvaluesasshownintheaccountingrecordsoftheGroupandoftheCompanyhadbeenwrittendowntoanamountwhichtheymightbeexpectedsotorealise.
DIreCtorS’ report
Annu
al Report 2009
��
Annual Report 2009
��
Information On The Financial Statements (cont’d) (b) toensurethatanycurrentassetswhichwereunlikelytoberealisedintheordinarycourseofbusiness
includingtheirvaluesasshownintheaccountingrecordsoftheGroupandoftheCompanyhadbeenwrittendowntoanamountwhichtheymightbeexpectedsotorealise.
Atthedateofthisreport,theDirectorsarenotawareofanycircumstances:-
(a) whichwouldrendertheamountswrittenoffforbaddebtsortheamountoftheallowancefordoubtfuldebtsinthefinancialstatementsoftheGroupandoftheCompanyinadequatetoanysubstantialextent;or
(b) whichwouldrenderthevaluesattributedtocurrentassetsinthefinancialstatementsoftheGroupandoftheCompanymisleading;or
(c) whichhavearisenwhichrenderadherencetotheexistingmethodofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate.
Nocontingentorotherliabilityhasbecomeenforceableorislikelytobecomeenforceablewithintheperiodoftwelvemonthsaftertheendoffinancialyearwhich,intheopinionoftheDirectors,willormayaffecttheabilityoftheGroupandoftheCompanytomeetitsobligationsasandwhentheyfalldue,exceptasdisclosedinNote36totheFinancialStatements.
Atthedateofthisreport,theredoesnotexist:-
(a) anychargeontheassetsoftheGroupandoftheCompanywhichhasarisensincetheendofthefinancialyearwhichsecurestheliabilityofanyotherperson;or
(b) anycontingentliabilityoftheGroupandoftheCompanywhichhasarisensincetheendofthefinancialyear.
Other Statutory InformationTheDirectorsstatethat:-
Atthedateofthisreport,theyarenotawareofanycircumstancesnototherwisedealtwithinthisreportorthefinancialstatementswhichwouldrenderanyamountstatedinthefinancialstatementsmisleading.
IntheopinionoftheDirectors:-
(a) theresultsofoperationsoftheGroupandoftheCompanyduringthefinancialyearwerenotsubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature;and
(b) therehasnotarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportanyitem,transactionoreventofamaterialandunusualnaturelikelytoaffectsubstantiallytheresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearinwhichthisreportismade.
DirectorsTheDirectorswhohaveheldforofficesincethedateofthelastreportare:-
TeyPorYeeSeePohYeeYapSiokTengFuLitFungLeouThiamLaiUngkuA.RazakBinUngkuA.Rahman
DIreCtorS’ report
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
Directors (cont’d)TheDirectorsholdingofficeattheendofthefinancialyearandtheirbeneficialinterestsinordinarysharesoftheCompanyandofitsrelatedcorporationsduringthefinancialyearended30April2009asrecordedintheRegisterofDirectors’ShareholdingkeptbytheCompanyunderSection134oftheCompaniesAct,1965wereasfollows;
Number of ordinary shares of RM0.10 each
As at As atDirect interest 01.05.2008 Bought Sold 30.04.2009
TeyPorYee 10,177,500 - - 10,177,500SeePohYee 5,930,000 - - 5,930,000YapSiokTeng 150,000 - - 150,000
Deemed interest
TeyPorYee* 129,600,000 - - 129,600,000SeePohYee* 129,600,000 - - 129,600,000
*deemedinterestbyvirtueofhisshareholdingsinSmartTowerSdn.Bhd.
ByvirtueofTeyPorYeeandSeePohYeedirectandindirectinterestintheCompany,theyalsodeemedtohaveinterestinthesharesofallthesubsidiarycompaniestotheextenttheCompanyhasaninterestunderSection6AoftheCompaniesAct,1965.
Otherthanasdisclosedabove,theDirectorsattheendofthefinancialyeardidnotholdanyinterestinsharesoftheCompanyanditsrelatedcorporationsduringthefinancialyear.
Directors’ BenefitsDuringandattheendoffinancialyear,noarrangementssubsistedtowhichtheGroupandtheCompanyisaparty,withtheobjectorobjectsofenablingDirectorsoftheCompanytoacquirebenefitsbymeansoftheacquisitionofsharesinordebenturesoftheCompanyoranyotherbodycorporate.
Sincetheendofpreviousfinancialyear,noDirectorhasreceivedorbecomeentitledtoreceiveanybenefit(exceptasdisclosedintheNotestotheFinancialStatement)byreasonofacontractmadebytheCompanyorarelatedcorporationwiththeDirectororwithafirmofwhichtheDirectorisamember,orwithacompanyinwhichtheDirectorhasasubstantialinterest.
DIreCtorS’ report
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
AuditorsMessrsSJGrantThorntonhaveexpressedtheirwillingnesstocontinueinoffice.
SignedonbehalfoftheBoardofDirectorsinaccordancewitharesolutionoftheDirectors.
TEY POR YEE SEE POH YEE DIRECTORS DIRECTORS
KualaLumpur27August2009
DIreCtorS’ report
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
IntheopinionoftheDirectors,thefinancialstatementssetoutonpages30to69aredrawnupinaccordancewiththeprovisionsofCompaniesAct,1965andFinancialReportingStandardsinMalaysiasoastogiveatrueandfairviewofthefinancialpositionsoftheGroupandoftheCompanyasat30April2009andoftheresultsandcashflowsoftheGroupandoftheCompanyforthefinancialyearthenended.
OnbehalfoftheBoard
TEY POR YEE SEE POH YEE
KualaLumpur27August2009
Statutory DeclarationI, Tey Por Yee, being the Director primarily responsible for the financial management of NextnationCommunicationBerhad,dosolemnlyandsincerelydeclarethattothebestofmyknowledgeandbelief,thefinancialstatementssetoutonpages30to69arecorrectandImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.
SubscribedandsolemnlydeclaredbytheabovenamedatKualaLumpurintheFederalTerritorythisdayof27August2009 TEY POR YEE
Beforeme:
T.THANDONEE RAJA GOPAL (NO. W228)CommissionerforOaths
Statement by DIreCtorS
Annu
al Report 2009
��
Annual Report 2009
��
Report on the Financial StatementsWehaveauditedthefinancialstatementsofNextnationCommunicationBerhad,whichcomprisethebalancesheetsasat30April2009oftheGroupandoftheCompany,theincomestatements,statementsofchangesinequityandcashflowstatementsoftheGroupandoftheCompanyforthefinancialyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes,assetoutonpages30to69.
Directors’ Responsibilities for the Financial Statements
The directors of the Company are responsible for the preparation and fair presentation of these financialstatementsinaccordancewithFinancialReportingStandardsandtheCompaniesAct1965inMalaysia.Thisresponsibilityincludes:designing,implementingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.
Auditors’ Responsibilities
Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialstatementsarefreefrommaterialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. Theprocedures selecteddependonour judgement, including the assessment ofrisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheCompany’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.
Opinion
Inouropinion,thefinancialstatementshavebeenproperlydrawnupinaccordancewithFinancialReportingStandardsandtheCompaniesAct1965inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasof30April2009andoftheirfinancialperformanceandcashflowforthefinancialyearthenended.
Report on Other Legal and Regulatory Requirements
InaccordancewiththerequirementoftheCompaniesAct1965inMalaysia,wealsoreportthefollowing:-
a) Inouropinion,theaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyanditssubsidiarycompaniesofwhichwehaveactedasauditorshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.
b) Wehaveconsideredthefinancialstatementsandtheauditors’reportsofallthesubsidiarycompaniesofwhichwehavenotactedasauditors,asdisclosedinNote14totheFinancialStatements.
c) WearesatisfiedthatthefinancialstatementsofthesubsidiarycompaniesthathavebeenconsolidatedwiththeCompany’sfinancialstatementsareinformandcontentappropriateandproperforthepurposesofthepreparationofthefinancialstatementsoftheGroupandwehavereceivedsatisfactoryinformationandexplanationsrequiredbyusforthosepurposes.
d) The auditors’ reports on the financial statements of the subsidiary companies did not contain anyqualificationoranyadversecommentmadeunderSection174(3)oftheAct.
InDepenDent auDItorS’ reportThe Members of Nextnation Communication Berhad (IncorporatedinMalaysia)
Annu
al Report 2009
��
Annual Report 2009
��
Other Matters
ThisreportismadesolelytothemembersoftheCompany,asabody,inaccordancewithSeciton174oftheCompaniesAct1965inMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.
SJ GRANT THORTON DATO’ N. K. JASANI (NO.AF:0737) CHARTEREDACCOUNTANT CHARTEREDACCOUNTANTS (NO:708/03/10(J/PH))
KualaLumpur27August2009
InDepenDent auDItorS’ reportThe Members of Nextnation Communication Berhad (IncorporatedinMalaysia)
(cont’d)
Annu
al Report 2009
�0
Annual Report 2009
��
Group Company
Note 2009rm
2008rm
2009rm
2008rm
ShareCapital � 41,580,000 41,580,000 41,580,000 41,580,000
Reserves 6 1,065,574 695,376 5,558,840 5,558,840
Retainedprofits/(Accumulatedlosses) 19,358,580 26,069,204 (1,240,273) (765,742)
Totalshareholders’equity 62,004,154 68,344,580 45,898,567 46,373,098
MINORITYINTERESTS 2,457,475 2,944,674 - -
TOTALEQUITY 64,461,629 71,289,254 45,898,567 46,373,098
Non-Current Liabilities
Financeleaseliabilities � 820,433 955,352 - -
Termsloans 8 8,534,224 4,994,624 - -
Totalnon-currentliabilities 9,354,657 5,949,976 - -
73,816,286 77,239,230 45,898,567 46,373,098
Non-Current Assets
Property,plantandequipment � 20,743,879 14,791,486 - -
Developmentexpenditure �0 10,410,470 5,913,508 - -
Intangibleassets �� 2,292,325 2,945,388 - -
Goodwillonconsolidation �� 1,302,549 1,302,549 - -
Investmentinassociatecompanies �� 225,240 225,240 - -
Investmentinsubsidiarycompanies 14 - - 9,500,000 9,500,000
Fixeddepositswithalicensedbank 15 538,503 598,000 - -
Amountduefromassociatecompany 16 1,050,024 2,660,031 - -
Totalnon-currentassets 36,562,990 28,436,202 9,500,000 9,500,000
Current Assets
Tradereceivables �� 22,314,423 25.172,226 - -Otherreceivables,depositsandprepayments �� 14,444,229 18,054,531 13,875 86,510
Amountduefromsubsidiarycompanies 19 - - 36,373,559 36,797,504
Taxrecoverable 1,091,195 487,511 14,492 9,452
Cashandcashequivalents 20 13,963,804 15,562,865 96,812 84,535
Totalcurrentassetss 51,813,651 59,277,133 36,498,738 36,978,001
balanCe SheetAs at 30 April 2009
Annu
al Report 2009
�0
Annual Report 2009
��
Group Company
Note 2009rm
2008rm
2009rm
2008rm
Current Liabilities
Tradepayables �� �,���,0�� 3,170,744 - -
Otherpayablesandaccruals �� 3,148,675 2,871,476 98,028 104,902
Amountduetosubsidiarycompany �� - - 2,143 �
Amountduetoassociatecompany �� 240,760 231,814 - -
Amountduetodirectors �� 2,926,832 4,002 - -
Financeleaseliabilities � 523,649 355,634 - -
Termloans � 2,133,850 2,871,572 - -
Taxpayables 1,553 1,292 - -
Bankoverdraft �0 - 967,571 - -
Totalcurrentliabilities 14,560,355 10,474,105 100,171 104,903
NETCURRENTASSETS 37,253,296 48,803,028 36,398,567 36,873,098
73,816,286 77,239,230 45,898,567 46,373,098
Theaccompanyingnotesformanintegralpartofthefinancialstatements
balanCe SheetAs at 30 April 2009
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
InCome StatementSfor the Financial Year Ended 30 April 2009
Group Company
Note 2009rm
2008rm
2009rm
2008rm
Revenue �� 54,937,777 65,145,681 - -
Costofsales �� (40,749,318) 44,898,181 - -
Grossprofit 14,188,459 20,247,500 - -
Otherincome 239,927 1,766,669 345 42,217
Administrationexpenses (20,766,691) (27,360,098) (474,876) (481,048)
Lossfromoperations (6,338,305) (5,345,929) (474,531) (438,831)
Financecosts �� (840,989) (317,578) - -
Lossbeforetaxation �� (7,179,294) (5,663,507) (474,531) (438,831)
Taxation �� (18,529) (434,154) - 4,110
Netlossforthefinancialyear (7,197,823) (6,097,661) (474,531) (434,721)
Attributableto:-
EquityholdersoftheCompany (6,710,624) (8,632,032)
Minorityinterests (487,199) (2,534,371)
(7,197,823) (6,097,661)
Loss per share attributable to equity holders of the Company (sen):-
Lossperordinaryshare �� (1.61) (2.08)
Theaccompanyingnotesformanintegralpartofthefinancialstatements
Annu
al Report 2009
��
Annual Report 2009
��
StatementS of ChanGeS In equItyfor the Financial Year Ended 30 April 2009
Attributable to equity holders of the Company
Non-distributable Distributable
Sharecapital
RM
Sharepremium
RM
Translationreserve
RM
Retainedprofits
RMTotalRM
Minorityinterests
RM
Totalequity
RM
GroupBalanceat1May2007 26,820,000 14,918,840 (1,801,022) 34,701,236 74,639,054 410,303 75,049,357
Issuedduringthefinancialyear 900,000 4,500,000 - - 5,400,000 - 5,400,000
Capitalisedasbonusissue 13,860,000 (13,860,000) - - - - -
Currencytranslationdifference - - (3,062,442) - (3,062,442) - (3,062,442)
Netlossforthefinancialyear - - - (8,632,032) (8,632,032) 2,534,371 (6,097,661)
Balanceat30April2008 41,580,000 5,558,840 (4,863,464) 26,069,204 68,344,580 2,944,674 71,289,254
Currencytranslationdifference - - ��0,��� - ��0,��� - ��0,���
Netlossforthefinancialyear - - - (6,710,624) (6,710,624) (487,199) (7,197,823)
Balanceat30April2009 41,580,000 5,558,840 (4,493,266) 19,358,580 62,004,154 2,457,475 64,461,629
Sharecapital
RM
Sharepremium
RM
AccumulatedlossesRM
TotalRM
Company
Balanceat1May2007 26,820,000 14,918,840 (331,021) 41,407,819
Issuedduringthefinancialyear 900,000 4,500,000 - 5,400,000
Capitalisedasbonusissue 13,860,000 (13,860,000) - -
Netlossforthefinancialyear - - (434,721) (434,721)
Balanceat30April2008 41,580,000 5,558,840 (765,742) 46,373,098
Netlossforthefinancialyear - - (474,531) (474,531)
Balanceat30April2009 41,580,000 5,558,840 (1,240,273) 45,898,567
Theaccompanyingnotesformanintegralpartofthefinancialstatements
Annu
al Report 2009
��
Annual Report 2009
��
CaSh flow StatementSfor the Financial Year Ended 30 April 2009
Group Company2009rm
2008rm
2009rm
2008rm
Cash Flow from Operating Activities
Lossbeforetaxation (7,179,294) (5,663,507) (474,531) (438,831)
Adjustments for:-
Amortisationofdevelopmentexpenditure 814,699 1,818,559 - -
Amortisationofintangibleassets 871,310 625,163 - -
Depreciation 3,082,897 1,513,480 - -
Lossondisposalofsubsidiarycompany - 312,944 - -
Lossondisposalofproperty,plantandequipment - 29,424 - -
Interestexpense 840,989 317,578 - -
Interestincome (108,815) (184,856) (345) (42,217)
Allowancefordoubtfuldebts 845,132 - - -
Allowancefordoubtfuldebtsnolongerrequired - (1,389,912) - -
Operatinglossbeforeworkingcapitalchanges (833,082) (2,621,127) (474,876) (481,048)
Changesinworkingcapitals:-
Receivables 5,602,467 19,830,214 72,635 12,715
Payables 2,691,491 (9,980,875) (6,874) 28,844
Directors 2,922,830 (92,271) - -
Subsidiarycompanies - - 426,087 (5,790,014)
Associatecompany 1,618,953 (532,048) - -
Netcashgeneratedfrom/(usedin)operations 12,002,659 6,603,893 16,972 (6,229,503)
Taxpaid (674,327) (1,099,084) (5,040) (2,509)
Taxrefund 52,375 - - -
Interestpaid (840,989) (317,578) - -
Interestreceived 108,815 184,856 345 42,217
Netcashgeneratedfrom/(usedin)operatingactivities 10,648,533 5,372,087 12,277 (6,189,795)
CASH FLOWS FROM INVESTING ACTIVITIES
Investmentinsubsidiarycompany - - - (�)
Developmentexpenditurepaid (5,311,661) (2,617,783) - -
Purchaseofproperty,plantandequipment(Note9) (8,327,467) (10,507,519) - -
Purchaseofintangibleassets - (2,579,625) - -
Proceedfromdisposalofproperty,plantandequipment - 199,938 - -
Placementoffixeddeposit - (80,000) - -
Withdrawaloffixeddeposits 80,000 32,000 - -
Netcashusedininvestingactivities (13,559,128) (15,552,989) - (2)
Annu
al Report 2009
��
Annual Report 2009
��
CaSh flow StatementSfor the Financial Year Ended 30 April 2009
Group Company2009rm
2008rm
2009rm
2008rm
CASH FLOWS FROM OPERATING ACTIVITIES
Proceedsfromissuanceofshares - 5,400,000 - 5,400,000
Repaymentoffinancepayables (519,844) (460,948) - -
Drawndownoftermloans 5,550,200 7,146,182 - -
Repaymentoftermloans (2,906,386) (458,760) - -
Netcashgeneratedfromfinancingactivities 2,123,970 11,626,474 - 5,400,000
CASH AND CASH EQUIVALENTS
Netchanges (786,625) 1,445,572 12,277 (789,797)
Atbeginningofthefinancialyear 14,595,294 12,604,512 84,535 874,332
Translationdifference 155,135 545,210 - -
Atendofthefinancialyear(Note20) 13,963,804 14,595,294 96,812 84,535
Theaccompanyingnotesformanintegralpartofthefinancialstatements
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
1. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedinaccordancewiththeprovisionsoftheCompaniesAct,1965andFinancialReportingStandards(“FRSs”)issuedbyMalaysianAccountingStandardsBoard(“MASB”).
2. FINANCIAL RISK MANAGEMENT POLICIES
TheGroup’s financial riskmanagementpolicy seeks toensure thatadequate financial resourcesareavailableforthedevelopmentoftheGroupbusinesswhilstmanagingitsrisk.TheGroupoperateswithinclearlydefinedguidelinesthatareapprovedbytheBoardandtheGroup’sguidelinesarenottoengageinspeculativetransactions.
Themainareasof financialrisks facedbytheGroupandthepolicyinrespectof themajorareasoftreasuryactivityaresetoutasfollows:-
2.1 Foreign currency risk
Certain subsidiary companies are exposed to foreign currency risk as a result of its normaloperating activities, both external and intra-Group where the currency denominated in acurrencyotherthantherespectivefunctionalcurrenciesoftheGroupactivities.TheGroup’sguidelinesaretominimizetheexposureofoverseasoperatingactivitiestotransactionriskbymatchinglocalcurrencyincomeagainstlocalcurrencycosts.
2.2 Interest rate risk
TheGroup’shasexposuretointerestratesriskasitisrequiredtopayinteresttofinancepayablesandtermloans.
2.3 Credit risk
Managementhasacreditpolicyinplaceandtheexposuretocreditriskismonitoredonanongoingbasis.
The credit risk is controlled by the application of credit approvals, limits and monitoringprocedures.Aninternalcreditreviewisconductedifthecreditriskismaterial.TheGroupdoesnotrequiredcollateralinrespectoffinancialassets.
2.4 Liquidity and cash flow risks
ThecashflowsoftheGroupisbasicallysupportedbytheshareholders’equity.
3. SIGNIFICANT ACCOUNTING POLICIES
3.1 Accounting convention
The financial statements of the Group and of the Company have been prepared under thehistoricalcostconvention,unlessotherwiseindicatedinthesummaryofsignificantaccountingpolicies.
The financial statements are presented in Ringgit Malaysia (“RM”) which is the Company’sfunctionalcurrency.
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
3.2 Adoption of new and revised Financial Reporting Standards (“FRSs”)
(a) TheamendmentstopublishedstandardsandICInterpretationstoexistingstandardseffectivefortheGroupandtheCompanyforthefinancialperiodbeginningonorafter1May2008areasfollows:-
1) Amendment to FRS 121 - The Effects of Changes in Foreign Exchange Rates – Net InvestmentinaForeignOperation
2) ICInterpretation1 - Changes in Existing Decommissioning, Restoration andSimilarLiabilities
3) ICInterpretation2 - Members’ Shares in Co-operative Entities and SimilarInstruments
4) ICInterpretation5 - RightstoInterestsarisingfromDecommissioning,RestorationandEnvironmentalRehabilitationFunds
5) ICInterpretation6 - Liabilities arising from Participating in a Specific Market– Waste Electrical and Electronic Equipment
6) ICInterpretation7 - Applying the Restatement Approach under FRS 1292004FinancialReportinginHyperinflationaryEconomies
7) ICInterpretation8 - ScopeofFRS2
8) FRS107 - CashflowStatements
9) FRS111 - ConstructionContracts
10) FRS112 - IncomeTaxes
11) FRS118 - Revenue
12) FRS120 - Accounting for Government Grants and Disclosure ofGovernmentAssistance
13) FRS134 - InterimFinancialReporting
14) FRS137 - Provisions,ContingentLiabilitiesandContingentAssets
(b) Thefollowingarethestandards,amendmentstoFRSsandICInterpretationswhicharenotyeteffectiveandhavenotbeenearlyadoptedbytheGroupandtheCompany:-
1) FRS139 - FinancialInstruments:RecognitionandMeasurement
FRS139willbeeffectiveforaccountingperiodbeginningonorafter1January2010.
Thisnewstandardestablishedprinciplesforrecognisingandmeasuringfinancialassets,financial liabilities and some contracts to buy and sell non financial items. Hedgeaccountingispermittedonlyunderstrictcircumstances.
TheGroupandtheCompanyisexemptedfromdisclosingthepossibleimpact,ifany,tothefinancialstatementsuponinitialapplicationofFRS139.
2) FRS4 - InsuranceContracts
3) FRS7 - FinancialInstruments:Disclosures
4) FRS8 - OperatingSegments
5) FRS123 - BorrowingCosts
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
3.2 Adoption of new and revised Financial Reporting Standards (“FRSs”) (cont’d)
(b) Thefollowingarethestandards,amendmentstoFRSsandICInterpretationswhicharenotyeteffectiveandhavenotbeenearlyadoptedbytheGroupandtheCompany(cont’d):-
6) AmendmentstoFRS1 - Cost of an Investment in a Subsidiary, Jointly Controlled
FirsttimeAdoptionof EntityorAssociate
FinancialReporting
StandardsandFRS127
Consolidatedand
SeparateFinancial
Statements
7) AmendmentstoFRS2
Share-basedPayment - VestingConditionsandCancellations
8) ICInterpretation9 - ReassessmentofEmbeddedDerivatives
9) ICInterpretation10 - InterimFinancialReportingandImpairment
10) IC Interpretation 11 - FRS 2 – Group and Treasury Share Transactions
11) ICInterpretation13 - CustomerLoyaltyProgrammes
12) IC Interpretation 14 - FRS 119 – The Limit on a Defined Benefit Asset, Minimum FundingRequirementsandtheirInteraction
The above standards, amendments to FRSs and IC Interpretations shall be effective foraccounting period beginning on or after 1 January 2010 except for FRS 8 OperatingSegments,whichshallapplytoaccountingperiodbeginningonorafter1July2009.
Theinitialapplicationoftheabovestandards,amendmentstoFRSsandICInterpretationsarenotexpectedtohaveanymaterialimpactonthefinancialstatementsoftheGroupandoftheCompany.
(c) TheeffectsofchangesinaccountingpoliciesarisingfromadoptionofrevisedFRSsareasfollows:-
Initialapplicationof theaboveAmendmentsandFRS107,111,118,120,134and137didnot result insignificantchanges to theaccountingpoliciesof the Groupandof theCompany.
3.3 Significant Accounting Estimates and Judgements
Estimates,assumptionsconcerningthefutureandjudgementsaremadeinthepreparationofthe financial statements. Theyaffect theapplicationof theGroup’s accountingpolicies andreportedamountsofassets,liabilities,incomeandexpenses,anddisclosuresmade.Estimatesandunderlyingassumptionsareassessedonanon-goingbasisandarebasedonexperienceandrelevantfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.Actualresultmaydifferfromtheseestimates.
Keysourcesofestimationuncertainty
Thekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthebalancesheetdate,thathavesignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:-
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
3.3 Significant Accounting Estimates and Judgements (cont’d) Keysourcesofestimationuncertainty(cont’d)
Impairment of goodwill
TheGroupdetermineswhethergoodwillisimpairedatleastonceannually.Thisrequirestheestimationof thevalue inuseof thecash-generatingunits towhichgoodwill areallocated.EstimatingthevalueinuserequirestheGrouptomakeanestimateoftheexpectedfuturecashflows from the cash-generating unit and also to choose a suitable discount rate in order tocalculatethepresentvalueofthosecashflows.
Deferred tax assets
Deferred taxassetsare recognised forallunabsorbedbusiness lossesandrecognisedcapitalallowancestotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthelossesandcapitalallowancescanbeutilised.Significantmanagementjudgementisrequiredtodeterminetheamountofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.
Income taxes
TheGroupisexposedtoincometaxesinnumerousjurisdictions.SignificantjudgementisinvolvedindeterminingtheGroup-wideprovisionforincometaxes.Therearecertaintransactionsandcomputationsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.TheGrouprecognisedtaxliabilitiesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferencewillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.
Depreciation of property, plant and equipment
Property, plant and equipment are depreciated in a straight-line basis over their useful life.Managementestimatedtheusefullifeoftheseassetstobewithin5to50financialyears.Changesin theexpected levelofusageand technologicaldevelopmentscould impact theeconomicusefullifeandtheresidualvaluesoftheseassets,thereforefuturedepreciationchargescouldberevised.
Managementestimatestheusefullivesoftelecommunicationequipmenttobe10years.Thesearecommonlifeexpectedappliedinthetelecommunicationindustry.Inaddition,theestimationoftheusefullivesoftelecommunicationequipmentisbasedoninternaltechnicalevaluationandexperiencewithsimilarassets.
Amortisation of development expenditure
Developmentexpenditureisamortisedbyreferencetothenumberofunitssaleoftherelatedproductover the totalestimatedunit sale foraperiodof10 financialyears.Changes in thetechnological development and market demand could impact economical useful life of theassets,thereforefutureamortisationchargescouldberevised.
Impairment of investment in subsidiaries and recoverability of amount owing to subsidiaries
TheCompany reviews its investment in subsidiaries for impairment annually in accordancewith itsaccountingpolicy.More regular reviewsareperformed ifevents indicate that this isnecessary.Costsofinvestmentsinsubsidiarieswhichhaveceasedoperationswereimpaireduptonetassetsofthesubsidiaries.Theimpairmentmadeoninvestmentinsubsidiariesentailsanallowancefordoubtfuldebtstobemadetotheamountowingbythesesubsidiaries.
(cont’d)
Annu
al Report 2009
�0
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
3.3 Significant Accounting Estimates and Judgements (cont’d) Keysourcesofestimationuncertainty(cont’d)
Significant judgement is required in theestimationof thepresentvalueof futurecash flowsgenerated by the subsidiaries, which involve uncertainties and are significantly affected byassumptionsusedandjudgementmaderegardingestimatesoffuturecashflowsanddiscountrates. Changes in assumption could significantly affect the results of the Company’s test forimpairmentofinvestmentinsubsidiaries.
3.4 Basis of consolidation
TheGroupfinancialstatementsconsolidatetheauditedfinancialstatementsoftheCompanyandallofitssubsidiarycompanies,whichhavebeenpreparedinaccordancewiththeGroup’saccountingpolicies.
Allinter-companytransactions,balancesandunrealisedgainsontransactionsbetweengroupcompaniesareeliminated;unrealisedlossesarealsoeliminatedonconsolidationunlesscostcannotberecovered.
ThefinancialstatementsoftheCompanyanditssubsidiarycompaniesarealldrawnuptothesamereportingdate.
Acquisition of subsidiary companies is accounted for using the purchase method. The costofanacquisition ismeasuredas the fairvalueof theassetsgiven,equity instruments issuedandliabilitiesincurredorassumedatthedateofexchange,pluscostsdirectlyattributabletotheacquisition. Identifiableassets acquiredand liabilities andcontingent liabilities assumedin a business combination aremeasured initially at their fair values at the acquisitiondate,irrespectiveoftheextentofanyminorityinterest.
Anyexcessofthecostofthebusinesscombinationoverthegroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesrepresentsgoodwill.ThegoodwillisaccountedforinaccordancewiththeaccountingpolicyforgoodwillstatedinNote3.9.
Anyexcessofthegroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesoverthecostofbusinesscombinationisrecognisedasincomeonthedateofacquisition.
Minorityinterestrepresentstheportionofprofitorlossandnetassetsinsubsidiarycompaniesnotheldby theGroup.Theyarepresented in theconsolidatedbalancesheetwithinequity,separatelyfromtheparentshareholders’equity,andareseparatelydisclosedintheconsolidatedincomestatement.
SubsidiarycompaniesareconsolidatedusingthepurchasemethodofaccountingfromthedateonwhichcontrolistransferredtotheGroupandarenolongerconsolidatedfromthedatethatcontrolceases.
Thegainor lossondisposalofasubsidiarycompanyis thedifferencebetweennetdisposalproceeds and the Group’s share of its net assets together with any unimpaired balance ofgoodwillonacquisitionandexchangedifferences.
(cont’d)
Annu
al Report 2009
�0
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
3.5 Subsidiary companies
Asubsidiarycompany isacompany inwhich theGroupor theCompanyhas thepower toexercisecontroloverthefinancialandoperatingpoliciessoastoobtainbenefitstherefrom.
Investmentinsubsidiarycompanies,whichiseliminatedonconsolidation,isstatedatcostlessanyimpairmentlossesintheCompany’sbalancesheet.Whereanindicationofimpairmentexists,thecarryingamountofthesubsidiarycompaniesisassessedandwrittendownimmediatelytotheirrecoverableamount.
Ondisposalofsuchinvestments,thedifferencesbetweennetdisposalandtheircarryingamountischargedorcreditedtotheincomestatements.
3.6 Associate company
AnassociatecompanyisacompanyinwhichtheGrouportheCompanyhasalongtermequityinterestofbetween20to50percentandisinthepositiontoexercisesignificantinfluenceoveritsfinancialandoperatingpoliciesthroughmanagementparticipationbutnottoexertcontroloverthosepolicies.
InvestmentinassociatecompaniesareaccountedforintheconsolidatedfinancialstatementsusingequityaccountingwhichinvolvesrecognisingintheincomestatementtheGroup’sshareoftheresultsofassociatecompaniesbasedonauditedormanagementfinancialstatementsoftheassociatecompanies.TheGroup’s investments inassociatecompaniesarecarriedin thebalancesheetatanamountthatreflectsitsshareofthenetassetsoftheassociatecompanies.Equityaccountingisdiscontinuedwhenthecarryingamountoftheinvestmentinanassociatecompanyreacheszero,unlesstheGrouphasincurredobligationsorguaranteedobligationsinrespectoftheassociatecompany.
InvestmentinassociatecompaniesisstatedatcostintheCompany’sbalancesheet.Whereanindicationofimpairmentexists,thecarryingamountoftheassociatecompaniesisassessedandwrittendownimmediatelytotheirrecoverableamount.
3.7 Property, plant and equipment and depreciation
Property, plant and equipment are initially stated at cost. Cost includes expenditure that isdirectlyattributabletotheacquisitionoftheasset.
Afterinitialrecognition,property,plantandequipmentarestatedatcostlessanyaccumulateddepreciationandanyaccumulatedimpairmentlosses.
Depreciationisprovidedonthestraightlinemethodinordertowriteoffthecostofeachassetoveritsestimatedusefullife.
TheprincipalannualdepreciationratesusedbytheGroupareasfollows:-
Freeholdbuildings 2% Telecommunicationequipment 10% Motorvehicles 20% Furnitureandfittings 20% Officeequipment 20% Renovation 20%
Freeholdlandwithaninfinitelifeisnotdepreciated.
Restorationcostrelatingtoanitemofproperty,plantandequipmentiscapitalisedonlyifsuchexpenditure is expected to increase the futurebenefits from theexistingproperty,plant andequipmentbeyonditspreviouslyassessedstandardofperformance.
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
3.7 Property, plant and equipment and depreciation (cont’d) Previously, telecommunication equipment is depreciated for 20% per annum. During the
financial year, the Group revised the depreciation policy for telecommunication equipmenttodepreciateon the straight linebasis for10%perannum.The revisionwasaccounted forprospectivelyasachangeinaccountingestimatesandasaresult,thedepreciationchargefortheGrouphasdecreasedbyRM1,063,496forthecurrentfinancialyear.
Property,plantandequipmentarewrittendowntorecoverableamountif,intheopinionoftheDirectors,islessthantheircarryingvalue.Recoverableamountisthenetsellingpriceoftheproperty,plantandequipmenti.e.theamountobtainablefromthesaleofanassetinanarm’slengthtransactionbetweenknowledgeable,willingparties,lessthecostsofdisposal.
Theresidualvalues,usefullivesanddepreciationmethodarereviewedateachfinancialyearendtoensurethattheamount,methodandperiodofdepreciationareconsistentwithpreviousestimatesandtheexpectedpatternofconsumptionofthefutureeconomicbenefitsembodiedintheitemsofproperty,plantandequipment.Ifexpectationsdifferfrompreviousestimates,thechangesareaccountedforasachangeinanaccountingestimate.
Thecarryingamountofanitemofproperty,plantandequipmentisderecognisedondisposalorwhenno futureeconomicbenefits areexpected from itsuseordisposal. Thedifferencebetween thenet disposal proceeds, if any, and the carrying amount is included inprofit orlossandtherevaluationsurplusrelatedtothoseassets,ifany,istransferreddirectlytoretainedearnings.
3.8 Capital work-in-progress
Capitalwork-in-progressconsistsofbuildingsandmachineryunderconstruction/installationforintendeduseasproductionfacilities.Theamountisstatedatcostandincludescapitalisationofinterestincurredonborrowingsrelatedtoproperty,plantandequipmentunderconstructionorinstallationuntiltheproperty,plantandequipmentarereadyfortheirintendeduse.Capitalwork-in-progressarenotdepreciatedastheseassetsarenotavailableforintendeduse.
3.9 Goodwill
GoodwillrepresentstheexcessofthecostofacquisitionovertheGroup’sinterestinthefairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesofasubsidiarycompanyandassociatecompanyatthedateofacquisition.
Goodwill arising on the acquisition of subsidiary companies is presented separately in thebalancesheetwhilegoodwillarisingontheacquisitionofassociatecompanyisincludedwithinthecarryingamountofinvestmentinassociatecompany.
Followinginitialrecognition,goodwill ismeasuredatcost lessanyaccumulatedimpairmentlosses.Goodwillisreviewedforimpairment,annuallyormorefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingvaluesmaybeimpaired.
For thepurposeof impairmenttesting,goodwillacquiredinabusinesscombinationis, fromtheacquisitiondate,allocatedtoeachoftheGroup’scash-generatingunits,orgroupsofcash-generatingunits,thatareexpectedtobenefitfromthesynergiesofthecombination,irrespectiveofwhetherotherassetsorliabilitiesoftheGroupareassignedtothoseunitsorgroupofunits.Eachunitorgroupofunitstowhichthegoodwillissoallocated:-
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
3.9 Goodwill (cont’d)
• Represents the lowest level within the Group at which the goodwill is monitored for internal managementpurposes;and
• Is not larger than a segment based on either the Group’s primary or the Group’s secondary reportingformat.
Acash-generatingunit(orgroupofcash-generatingunits)towhichgoodwillhasbeenallocatedaretestedforimpairmentannuallyand,wheneverthereisanindicationthattheunitmaybeimpaired,bycomparingthecarryingamountoftheunit,includinggoodwill,withtherecoverableamountof theunit.Where the recoverableamountof thecash-generatingunit (orgroupofcash-generatingunits)islessthanthecarryingamount,animpairmentlossisrecognised.
Animpairmentlossrecognisedforgoodwillshouldnotbereversedinsubsequentperiod.Gainsandlossesonthedisposalofanentityincludethecarryingamountofgoodwillrelatingtotheentitysold.
Wheregoodwillformspartofacash-generatingunit(orgroupofcash-generatingunits)andpartoftheoperationswithinthatunitisdisposedoff,thegoodwillassociatedwiththeoperationsdisposedoffisincludedinthecarryingamountoftheoperationswhendeterminingthegainorlossondisposaloftheoperations.Goodwilldisposedoffinthesecircumstancesaremeasuredbasedontherelativevaluesoftheoperationsdisposedoffandportionofthecash-generatingunitretained.
3.10 Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The costof intangible assets acquired in abusiness combination is their fair values as at thedateofacquisition.Followinginitialrecognition,intangibleassetsarecarriedatcostlessaccumulatedamortisation and any accumulated impairment losses. The useful life of intangible assets isassessedtobeeitherfiniteorindefinite.Intangibleassetswithfinitelifeareamortisedonstraight-linebasisovertheestimatedeconomicusefullifeandassessedforimpairmentwheneverthereis an indication that the intangibleassetmaybe impaired.Theamortisationperiodand theamortisation method for an intangible asset with a finite useful life are reviewed at least ateachfinancialyearend.Theamortisationexpenseonintangibleassetswithfiniteusefullifeisrecognisedintheincomestatementintheexpensecategoryconsistentwiththefunctionoftheintangibleasset.
Intangibleassetswithindefiniteusefullifearetestedforimpairmentannuallyormorefrequentlyiftheeventsorchangesincircumstancesindicatethatthecarryingvaluemaybeimpairedeitherindividuallyor at cash-generatingunit level. Such intangibles arenot amortised. Theusefullifeofanintangibleassetwithanindefinitelifeisreviewedannuallytodeterminewhethertheusefullifeassessmentcontinuestobesupportable.
The patents, trade marks and licenses are stated at cost less accumulated amortisation.Amortisationiscalculatedusingthestraight linemethodtoallocate thecostofpatent, trademarkandlicensesovertheirestimatedusefullives.
Gainorlossesarisingfromderecognitionofanintangibleassetsismeasuredasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetandarerecognisedintheincomestatementwhentheassetisderecognised.
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
3.11 Development expenditure
Expenditure on development activities of internally developed products is recognised as anintangibleassetwhenitrelatestotheproductionofneworsubstantivelyimprovedproductsandprocessesandwhentheGroupcandemonstratethatitistechnicallyfeasibletodeveloptheproductorprocesses,adequateresourcesareavailabletocompletethedevelopmentandthatthereisanintentiontocompleteandselltheproductorprocessestogeneratefutureeconomicbenefits.
DevelopmentexpenditureoftheGroupcomprisesofdirectcostandoverheadcostsincurredinthedevelopmentofsoftwareplatformandreal-timemultiplayermobilegame.
Previously,thedevelopmentcostisamortisedforaperiodof5years.Duringthefinancialyear,theGrouphasrevisedtheamortisationpolicyfordevelopmentexpendituretoamortiseonthestraightlinebasisovertheperiodof10years.Therevisionwasaccountedforprospectivelyasachangeinaccountingestimatesandasaresult, theamortisationchargefor theGrouphasdecreasedbyRM1,870,132forthecurrentfinancialyear.
The carrying amount of development expenditure are reviewed annually and written downimmediatelytotheirrecoverableamountwhereanindicationofimpairmentexists,inaccordancewithFRS136.
3.12 Assets acquired under lease agreements
Accounting by lessees
Finance leases
Lease of property, plant and equipment acquired under hire purchase arrangements whichtransfersubstantiallyalltherisksandrewardsofownershiptotheGrouparecapitalised.ThedepreciationpolicyontheseassetsissimilartothatoftheGroup’sproperty,plantandequipmentdepreciationpolicy.
Outstandingobligationsdueunderhirepurchasearrangementsafterdeductingfinanceexpensesare included as liabilities in the financial statements. Finance charges on hire purchase areallocatedtoincomestatementovertheperiodofrespectiveagreements.
3.13 Interest-bearing borrowings
Interest-bearingborrowingsarerecordedattheamountofproceedsreceived,netoftransactioncostsincurred.
Borrowing costs incurred to finance the construction of property, plant and equipment iscapitalisedaspartofthecostofthoseassetsduringtheperiodoftimethatisrequiredtocompleteandpreparetheassetsforitsintendeduse.
Allotherborrowingcostsarerecognisedasanexpenseintheincomestatementintheperiodinwhichtheyareincurred.
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
3.14 Income tax
Incometaxontheprofitorlossforthefinancialyearcomprisescurrentanddeferredtax.Currenttaxexpensesistheexpectedamountofincometaxespayableinrespectofthetaxableprofitforthefinancialyearandismeasuredusingthetaxratesthathavebeenenactedatthebalancesheetdate.
Deferred tax liabilities and assets are provided for under the liability method at the currenttaxrateinrespectofalltemporarydifferencesatthebalancesheetdatebetweenthecarryingamountofanassetorliabilityinthebalancesheetanditstaxbaseincludingunusedtaxlossesandcapitalallowances.
Deferredtaxassetsarerecognisedonlytotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilised.Thecarryingamountofadeferredtaxassetisreviewedateachbalancesheetdate.Ifitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowthebenefitofpartorthatentiredeferredtaxassettobeutilised,thecarryingamountofthedeferredtaxassetwillbereducedaccordingly.Whenitbecomesprobablethatsufficienttaxableprofitwillbeavailable,suchreductionswillbereversedtotheextentofthetaxableprofit.
Deferredtaxisrecognisedintheincomestatement,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity,inwhichcasethedeferredtaxisalsochargedorcrediteddirectlyinequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwill.
Deferredtaxismeasuredatthetaxratesthatareexpectedtoapplyintheperiodwhentheassetisrealisedortheliabilityissettled,basedontaxratesthathavebeenenactedorsubstantivelyenactedatthebalancesheetdate.
3.15 Provisions
Provisionsarerecognisedwhenthereisapresentobligationlegalorconstructive,asaresultofapastevent,whenitisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.Provisionsarenotrecognisedforfutureoperatinglosses.
AnyreimbursementthattheGroupcanbevirtuallycertaintocollectfromathirdpartywithrespecttotheobligationisrecognisedasaseparateasset.However,thisassetmaynotexceedtheamountoftherelatedprovision.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current bestestimate.Wheretheeffectofthetimevalueofmoneyismaterial,theamountofprovisionisthepresentvalueoftheexpenditureexpectedtoberequiredtosettletheobligation.
3.16 Cash and cash equivalents
Cashandcashequivalentscomprisecashonhand,bankbalances,shorttermdemanddepositsand highly liquid investments which are readily convertible to known amount of cash andwhicharesubjecttoaninsignificantriskofchangesinvalue.
Forthepurposeofthebalancesheet,cashandcashequivalentsrestrictedtobeusedtosettlealiabilityof12monthsormoreafterthebalancesheetdateareclassifiedasnon-currentasset.
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
3.17 Employee benefits
(i) Short term benefits
Wages, salaries,bonusesandsocial securitycontributionsare recognisedasanexpensein the financialyear inwhich theassociatedservicesare renderedbyemployeesof theGroup. Short term accumulating compensated absences such as paid annual leave arerecognised when services are rendered by employees that increase their entitlement tofuture compensated absences, and short term non-accumulating compensated absencessuchassickleavearerecognisedwhentheabsencesoccur.
(ii) Defined contribution plan TheCompanyanditssubsidiarycompaniesmakecontributionstothecountries’statutory
pensionschemesasprovidedbythelawsof thecountries inwhichithasoperations. Inparticular, the Malaysian incorporated companies contribute to the Employee ProvidentFund(“EPF”),adefinedcontributionplanregulatedandmanagedbytheGovernmentofMalaysia,whichappliestothemajorityoftheemployees.
Thecontributionsarerecognisedasaliabilityafterdeductinganycontributionalreadypaidandasanexpenseintheperiodinwhichtheemployeesrendertheirservices.
3.18 Foreign currency transactions and balances
ThefinancialstatementsarepresentedinMalaysiaRinggit,whichisalsothefunctionalcurrencyoftheholdingcompany.
TransactionsinforeigncurrenciesarerecordedinRinggitMalaysiaatratesofexchangerulingatthedateofthetransactions.Foreigncurrencymonetaryassetsandliabilitiesaretranslatedatexchangeratesrulingatbalancesheetdate.
Theassetsandliabilitiesoftheforeignentities,includinggoodwillandfairvalueadjustmentsarisingontheacquisitions,aretranslatedtoRinggitMalaysiaattheclosingratesatthebalancesheetdate.TheoperatingresultsaretranslatedtoRinggitMalaysiaattheexchangeratesattheaverageratesduringthefinancialyear.
Gainsand losses resulting from settlementof such transactionsandconversionofmonetaryassetsandliabilities,whetherrealisedorunrealised,areincludedintheincomestatementastheyarise.
Financial statementsof foreignconsolidatedsubsidiarycompaniesare translatedatyear-endexchangerateswithrespecttotheassetsandliabilities.Allresultingtranslationdifferencesareincludedintheforeignexchangereserveinshareholders’equity.
Goodwillandfairvalueadjustmentsarisingontheacquisitionofaforeignentityonandafter1January2006aretreatedasassetsandliabilitiesoftheforeignentityandtranslatedattheclosingrateatthebalancesheetdate.
On disposal of a foreign entity, the cumulative amount of exchange differences deferred inequityrelatingtothatforeignentityisrecognisedintheincomestatementasacomponentofthegainorlossondisposal.
Allotherforeignexchangedifferencesaretakentotheincomestatementinthefinancialyearinwhichtheyarise.
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
3.19 Revenue recognition
(a) Sale of goods or services
Revenuefromsaleofgoodsisrecognisedupondeliveryofproductsandcustomeracceptance,ifany,orperformanceofservices,andaftereliminatingsaleswithintheGroup.
(b) Interest income
Interest incomeisrecognisedontimeproportionbasis, takingintoaccounttheprincipaloutstandingandtheeffectiverateovertheperiodtomaturity,whenitisdeterminedthatsuchincomewillaccruedtotheGroup.
3.20 Receivables Receivablesarecarriedatanticipatedrealisablevalue.Baddebtsarewrittenoffintheperiod
inwhichtheyareidentified.Anallowanceismadefordoubtfuldebtsbasedonareviewofalloutstandingamountsattheperiodend.
3.21 Payables
Payablesarestatedatcostwhichisthefairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived.
3.22 Impairment of assets
Ateachbalancesheetdate,theGroupreviewsthecarryingamountsofitsassetstodeterminewhetherthereisanyindicationofimpairment.Intangibleassetwithindefiniteusefullifesuchasgoodwillistestedforimpairmentannuallyatfinancialyearendormorefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingvaluemaybeimpairedeitherindividuallyoratthecash-generatingunitlevel.
Ifanysuchindicationexists,orwhenannualimpairmenttestingforanasset isrequired, therecoverableamountisestimatedandanimpairmentlossisrecognisedwhenevertherecoverableamount of the asset or a cash-generating unit is less than its carrying amount. Recoverableamountofanassetoracash-generatingunitisthehigherofitsfairvaluelesscoststosellanditsvalueinuse.
Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Impairmentlossesofcontinuingoperationsarerecognisedintheincomestatementinthoseexpensecategoriesconsistentwiththefunctionoftheimpairedasset.
Animpairmentlossisrecognisedasanexpenseintheincomestatementimmediately,unlesstheassetiscarriedatarevaluedamount.Anyimpairmentlossofarevaluedassetistreatedasarevaluationdecreasetotheextentofanyunutilisedpreviouslyrecognisedrevaluationsurplusforthesameasset.
Anassessmentismadeateachbalancesheetdateastowhetherthereisanyindicationthatpreviouslyrecognisedimpairmentlossesforanassetotherthangoodwillmaynolongerexistormayhavedecreased.Ifsuchindicationexists,therecoverableamountisestimated.Apreviouslyrecognisedimpairmentlossisreversedonlyiftherehasbeenachangeintheestimatesusedtodeterminetheassetrecoverableamount.Thatincreasedamountcannotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciation,hadnoimpairmentlossbeenrecognisedfortheassetinpriorfinancialyears.
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
3.22 Impairment of assets(cont’d) All reversals of impairment losses are recognised as income immediately in the income
statementunlesstheassetiscarriedatrevaluedamount,inwhichcasethereversalinexcessofimpairmentlosspreviouslyrecognisedthroughtheincomestatementistreatedasrevaluationincrease.Aftersuchareversal,thedepreciationchargeisadjustedinfutureperiodstoallocatetherevisedcarryingamountoftheasset,lessanyresidualvalue,onasystematicbasisoveritsremainingusefullife.
Animpairmentlossrecognisedforgoodwillshallnotbereversedinasubsequentperiod.
3.23 Financial instruments Financialinstrumentscarriedonthebalancesheetincludecashandbankbalances,investments,
receivables,payablesandborrowings.Theparticularrecognitionmethodsadoptedaredisclosedintheindividualaccountingpolicystatementsassociatedwitheachitem.
Financialinstrumentsareclassifiedasliabilitiesorequityinaccordancewiththesubstanceofthecontractualarrangement.Interest,dividends,gainsandlossesrelatingtoafinancialinstrumentclassifiedas liabilityarereportedasexpenseor income.Distributions toholdersof financialinstrumentsclassifiedasequityarechargeddirectlytoequity.FinancialinstrumentsareoffsetwhentheGrouphasalegallyenforceablerighttosetofftherecognisedamountsandintendseithertosettleonanetbasis,ortorealisetheassetandsettletheliabilitysimultaneously.
3.24 Segmental results Segmentrevenuesandexpensesarethosedirectlyattributabletothesegmentsandincludeany
jointrevenueandexpenseswhereareasonablebasisofallocationexists.Segmentassetsincludeallassetsusedbyasegmentandconsistprincipallyofcash,receivables,inventories,intangibleassetsandproperty,plantandequipment,netofallowancesandaccumulateddepreciationandamortisation.Themajorityofthesegmentassetscanbedirectlyattributedtothesegmentsonareasonablebasis.Segmentassetsandliabilitiesdonotincludetaxrecoverableanddeferredincometaxes.
3.25 Intersegment transfers
Segmentrevenues,expensesandresultincludetransfersbetweensegments.ThepriceschargedonintersegmenttransactionsarethesameasthosechargedforsimilargoodstopartiesoutsideoftheGroupatanarm’slengthtransactions.Thesetransfersareeliminatedonconsolidation.
4. PRINCIPAL ACTIVITIES AND GENERAL INFORMATION
TheCompanyisprincipallyaninvestmentholdingcompany.TheprincipalactivitiesofthesubsidiariesaresetoutinNote14totheFinancialStatements.Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringthefinancialyear.
TheCompany isapublic limited liabilitycompany, incorporatedanddomiciled inMalaysia,and islistedontheACEMarket(formerlyknownasMESDAQMarket)ofBursaMalaysiaSecuritiesBerhad.TheregisteredofficeoftheCompanyislocatedatLevel7,MenaraMilenium,JalanDamanlela,PusatBandarDamansara,DamansaraHeights,50490KualaLumpurandtheprincipalplaceofbusinessislocatedatNo.909,BlockF,PhileoDamansaraOne,No.9,Jalan16/11,46350PetalingJaya,SelangorDarulEhsan.
The financial statements were authorised for issue by the Board of Directors in accordance with aresolutionoftheDirectorson27August2009.
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
5. SHARE CAPITAL
Group and Company
2009RM
2008RM
Authorised:-
OrdinarysharesofRM0.10each 200,000,000 200,000,000
Issuedandfullypaid:-
OrdinarysharesofRM0.10each
Atbeginningoffinancialyear 41,580,000 26,820,000
Issuedduringthefinancialyear - 14,760,000
Atendoffinancialyear 41,580,000 41,580,000
6. RESERVES
Group Company2009rm
2008rm
2009rm
2008rm
Non-distributable:-
Share premium
Atbeginningoffinancialyear 5,558,840 14,918,840 5,558,840 14,918,840
Arisesfromprivateplacement - 4,500,000 - 4,500,000
Capitalisedasbonusissue - (13,860,000) - (13,860,000)
Atendoffinancialyear 5,558,840 5,558,840 5,558,840 �,���,��0
Non-distributable:-
Translation reserve
Atbeginningoffinancialyear (4,863,464) (1,801,022) - -Foreigncurrencytranslationdifferences 370,198 (3,062,442) - -
Atendoffinancialyear (4,493,266) (4,863,464) - -
1,065,574 695,376 5,558,840 5,558,840
(cont’d)
Annu
al Report 2009
�0
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
7. FINANCE LEASE LIABILITIES
Group
2009
RM
2008
RMMinimumleasepayment
-notlaterthan1year 593,337 421,133
-laterthan1yearbutnotlaterthan5years 815,925 1,015,443
-laterthan5years 78,388 24,880
1,487,650 1,461,456
Futurefinancechargesonfinancelease (143,568) (150,470)
Presentvalueoffinanceleaseliabilities 1,344,082 1,310,986
Presentvalueoffinanceleaseliabilities
-notlaterthan1year 523,649 355,634
-laterthan1yearbutnotlaterthan5years 747,150 930,968
-laterthan5years 73,283 24,384
1,344,082 1,310,986
Analysedas:-
Duewithin12months 523,649 355,634
Dueafter12months 820,433 955,352
1,344,082 1,310,986
(cont’d)
Annu
al Report 2009
�0
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
8. TERM LOANS - SECURED
Group
2009RM
2008RM
TermloanIrepayableover120equalmonthlyinstallmentofRM14,400commencingfromMarch2007
959,994 1,060,069
TermloanIIrepayableover240equalmonthlyinstallmentofRM11,171commencingfromMarch2008
1,544,358 1,583,864
TermloanIIIrepayableover240equalmonthlyinstallmentofRM11,171commencingfromMarch2008
1,544,358 1,583,864
TermloanIVrepayableover45equalmonthlyinstallmentofRM222,222withthree(3)monthsgraceperiodfromthefirstdrawndown
6,461,301 3,638,399
TermloanVrepayableover240equalmonthlyinstallmentofRM17,880commencingonthefirstdayofthefirstmonthafterfullrelease
158,063 -
10,668,074 7,866,196
Repayableasfollows:-
Current 2,133,850 2,871,572
Non-current 8,534,224 4,994,624
10,668,074 7,866,196
Repaymentterms:-
-notlaterthan1year 2,133,850 2,871,572
-between1to2years 2,645,446 1,170,292
-between2to5years 3,268,748 957,892
-laterthan5years 2,620,030 2,866,440
10,668,074 7,866,196
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
8. TERM LOANS - SECURED (cont’d)
TermloansoftheGrouparesecuredby:-
(a) lienonfixeddepositofthesubsidiarycompany;
(b) deedofassignmentinfavorofthebankoncertainlandedpropertiesofthesubsidiarycompany;
(c) chargeoncertainlandedpropertiesofthesubsidiarycompany;
(d) firstpartyopenmoniescharge;and
(e) corporateguaranteefromtheCompany.
Theborrowingsbearinterestatratesrangingfrom5.65%to7.00%(2008:3.85%to7.00%)perannum.Therepaymenttermsoftermloansvaryfrommonthlytoquarterly.
9. PROPERTY, PLANT AND EQUIPMENT
Freehold buildings
RM
Office equipment
RM
Furniture and fittings
RM
Motor vehicles
RMRenovation
RM
Telecommu-nication
equipmentRM
Capital work in progress
RM
Total
2009RM
Total
2008RM
GroupCost
Atbeginningoffinancialyear 5,863,519 8,575,643 456,844 2,174,208 761,469 - - 17,831,683 6,698,477
Additions ���,��� �,�0�,��� ��,��� ���,0�� ��,��� - ���,�0� �,0��,��� ��,���,���
Translationdifferences (4,700) (17,573) (21,586) 21,132 16,001 - - (6,726) (158,750)
Disposal - - - - - - - - (251,219)
Reclassification - (11,750,377) - - - ��,��0,��� - - -
Atendoffinancialyear 6,355,693 3,913,876 494,484 2,888,399 825,797 ��,��0,��� 634,802 26,863,428 17,831,683
Accumulated depreciation
Atbeginningoffinancialyear 133,608 1,735,097 176,545 560,893 434,054 - - 3,040,197 1,613,589
Chargeforthefinancialyear 152,018 1,655,607 95,619 604,508 183,466 391,679 - 3,082,897 1,513,480
Translationdifferences (���) (�,���) (�,���) 5,525 3,782 - - (3,545) (65,015)
Disposal - - - - - - - - (��,���)
Reclassification - (���,�0�) - - - ���,�0� - - -
Atendoffinancialyear 285,174 2,513,971 267,591 1,170,926 621,302 1,260,585 - 6,119,549 3,040,197
Net book value
�00� �,0�0,��� �,���,�0� ���,��� �,���,��� �0�,��� �0,���,��� ���,�0� �0,���,��� -
�00� �,���,��� �,��0,��� ��0,��� �,���,��� ���,��� - - - ��,���,���
Depreciationchargeforfinancialyearended2008 ��,��� ���,�0� ��,00� ���,��� ���,�0� - - - �,���,��0
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
9. PROPERTY, PLANT AND EQUIPMENT (cont’d) Duringthefinancialyear,theGroupmadethefollowingcashpaymentstopurchaseproperty,plantand
equipment.
Group
2009RM
2008RM
Purchaseofproperty,plantandequipment 9,038,471 11,543,175
Financebyhirepurchaseandleasearrangements (552,940) (1,035,656)
Financebytermloan (158,063) -Cashpaymentsonpurchaseofproperty,plantandequipment 8,327,467 10,507,519
As at 30 April 2009, the net carrying amount of the Group’s property, plant and equipment underfinanceleaseareasfollows:-
Group
2009RM
2008RM
Motorvehicles 1,524,780 1,613,315
NetbookvalueofmotorvehiclesoftheGroupwhichareheldintrustbytheDirectorsofthesubsidiarycompaniesamountedtoRM286,937(2008:RM451,969).
FreeholdbuildingoftheGroupwithcarryingamountofRM5,783,924(2008:RM5,240,298)arepledgedtoalicensedbankforbankingfacilitiesgrantedtoasubsidiarycompany(Note8).
TitledeedsoffreeholdbuildingswithnetbookvalueamountedtoRM3,767,589(2008:RM3,844,741)asyettobetransferredtotheGroup.
10. DEVELOPMENT EXPENDITURE
Group2009RM
2008RM
Atbeginningoffinancialyear 5,913,508 5,114,284
Incurredduringthefinancialyear 5,311,661 2,617,783
11,225,169 7,732,067
Less:Amortisationduringthefinancialyear (814,699) (1,818,559)
Atendoffinancialyear 10,410,470 5,913,508
Included in the development expenditure are Directors’ other emoluments of the Directors of theCompanyanditssubsidiarycompanywhowereinvolvedinthedevelopmentactivitiesamountingtoRM314,271(2008:RM361,580).
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
11. INTANGIBLE ASSETS
Group
2009RM
2008RM
Atbeginningoffinancialyear 2,945,388 1,169,013
Additions - 2,579,625
Exchangetranslationdifferences 218,248 (178,087)
3,163,636 3,570,551Less:Amortisationduringthefinancialyear (871,310) (625,163)
Atendoffinancialyear 2,292,326 2,945,388
TheintangibleassetsoftheGroupareanexclusiveperpetuallicenseinthecontentmanagementsolutionknownas“AlChemist”andanexclusivelicensetouseEmotionSpytogetherwithanyandallofthetrademarks,copyright,patentsandotherintellectualpropertyrightsusedorsubsistinginorinconnectionwiththeEmotionSpyforaperiodofthreeyears.
12. GOODWILL ON CONSOLIDATION
Group
2009RM
2008RM
Atbeginning/endoffinancialyear 1,302,549 1,302,549
Thegoodwillrepresentstheexcessofthepurchaseconsiderationpaidforthesharesinthesubsidiarycompanies over the Group’s interest in the fair value of the identifiable net assets of the subsidiarycompaniesacquired.Forpurposesofimpairmenttesting,thecarryingamountofgoodwillisallocatedtotheGroup’srespectivecashgeneratingunitswhichrepresentsthelowestlevelwithintheGroupatwhichthegoodwillismonitoredforinternalmanagementpurposes.
Therecoverableamountofthegoodwillisbasedinvalue-in-cashcalculations,usingpre-taxcashflowprojectionsbasedonfinancialbudgetscoveringaperiodof5years.
Thekeyassumptionsusedinvalueinusecalculationsare:-
Revenueannualgrowthrate 10%-30% Expensesannualincrementrate 5%-20% Pre-taxdiscountrate 10%
Theabovekeyassumptionswerebased inpastperformanceand itsexpectationsof future trends intheindustryandexpectedmarketdevelopments.Thediscountrateusedispre-taxandreflecttherisksrelatingtothecashgeneratingunitsandisestimatedbasedonthecurrentmarketassessmentiftime-valueofmoney.Thekeyassumptionsaresensitivetothechangesinpercentagepointinthediscountrateusedandfutureplannedrevenuenotmaterialising.
TheDirectorsdonotexpectanyreasonablepossiblechangesinkeyassumptionstohaveasignificantimpactonthecarryingvalueofgoodwilltoexceeditsrecoverableamount.
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
13. INVESTMENT IN ASSOCIATE COMPANIES
Group
2009RM
2008RM
Unquotedshares,atcost 318,953 318,953
Shareofresultsofassociatecompany (93,713) (93,713)
225,240 225,240
Representedby:-
Shareofnetassets 225,240 225,240
GroupDetailsoftheassociatecompaniesareasfollow:-
Country ofName of Company % Effective interest Principal activities incorporation 2009 2008 % %
Held by Godynamic Investments LimitedSiamtouchWireless 49 49 Mobileapplication ThailandLtd. serviceprovider
Held by Qahaar Infracom Pte. Ltd.QahaarTelecoms 20 20 Investment,development SingaporePte.Ltd. tradingandmarketing forhardwareand software
14. INVESTMENT IN SUBSIDIARY COMPANIES
Group
2009RM
2008RM
Unquotedshares,atcost 9,500,000 9,500,000
Detailsofthesubsidiarycompaniesareasfollows:-
% Effective interest Subsidiary Country ofName of Company Company companies Principal activities incorporation 2009 2008 2009 2008 % % % %
Nextnation 100 100 - - Programmingservices, MalaysiaNetwork softwaredevelopmentSdn.Bhd. internetconsultingand provisionofinformation technologyservices
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
14. INVESTMENT IN SUBSIDIARY COMPANIES (cont’d)Detailsofthesubsidiarycompaniesareasfollows(cont’d):-
% Effective interest Subsidiary Country ofName of Company Company companies Principal activities incorporation 2009 2008 2009 2008 % % % %
OzuraSdnBhd 100 100 - - Mobilegameengine/solution Malaysia developandprovideraswell asmobilegamedeveloper andpublisher
NextnationTechcity 100 100 - - Propertyinvestment MalaysiaSdn.Bhd.
Held by Nextnation Network Sdn. Bhd.Nextnation - - 100 100 Developmentanddistribution MalaysiaCollectionsSdn.Bhd. ofretailmobileapplication soluitons
UsapeNelson - - 100 100 Contentaggregator MalaysiaWirelessSdn.Bhd.
Godynamic - - 51 51 Investmentholding BritishVirginInvestmentsLimited Island
Nextnation - - 100 100 Provisionofbusiness MalaysiaInteractiveSdn.Bhd. developmentandstrategic partnershipactivities
TaffuMediaSdn.Bhd. - - 100 100 Provisionofmediaadvertising, Malaysia publishingandprintingservices
DubaitechMarketing - - 100 100 Contentaggregator MalaysiaSdn.Bhd.
KotaemasEdaran - - 100 100 Contentaggregator MalaysiaSdn.Bhd.
Held by Taffu Media Sdn. Bhd.PudongOversea - - 100 100 Provisionofmediaadvertising, MalaysiaCapitalSdn.Bhd. publishingandprintingservices
DivamasPromotions - - 100 100 Provisionofmediaadvertising, MalaysiaSdn.Bhd publishingandprintingservices
NextnationServices - - 100 100 Companysecretarialservices MalaysiaSdn.Bhd.(formerlyknownasGangMediaSdn.Bhd.)
Held by Nextnation Interactive Sdn. Bhd.PTNextnation - - 80 80 Provisionofbusiness IndonesiaPrisma* developmentandstrategic partnershipactivities
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
14. INVESTMENT IN SUBSIDIARY COMPANIES (cont’d)Detailsofthesubsidiarycompaniesareasfollows(cont’d):-
% Effective interest Subsidiary Country ofName of Company Company companies Principal activities incorporation 2009 2008 2009 2008 % % % %
Held by Nextnation Collections Sdn. Bhd.NextnationQahaar - - 100 100 Researchanddevelopment, SingaporeVenturePteLtd* investment,tradingand marketingofcommunication informationtechnologyand lifesciencetechnologies
Held by Nextnation Qahaar Venture Pte LtdQahaarInfracomPteLtd*- - 100 100 Investment,development, Singapore tradingandmarketingfor hardwareandsoftware
Held by Godynamic Investment LimitedCodeWireless - - 100 100 Mobileapplicationservice SingaporePteLtd* provider
ElasitasTechnologies - - 62 62 Investmentholding BritishVirginLimited Island
VisionPhoenix - - 100 100 Mobileapplicationservice BritishVirginGroupLimited provider Island
VinamobVenture - - 100 100 Mobileapplicationservice VietnamCompanyLimited* provider
PTSemestaTirta - - 84 84 Mobileapplicationservice IndonesiaAntaraRaya* provider
PTFlowerStar - - 84 84 Mobileapplicationservice IndonesiaMedia* provider
PTGalaksi - - - 95 Mobileapplicationservice IndonesiaPublishindo*@ provider
Held by Code Wireless Pte LtdOzuraPteLtd* - - 100 100 Gamesandcontent Singapore development,aggregation anddistribution
NextnationMobitech - - 100 100 Mobilemessaging IndiaIndiaPteLtd*# technologies,mobile applicationplatformand softwareprovider
Held by Elasitas Technologies LimitedPTElasitasMulti - - 97 97 Mobileapplicationservice IndonesiaKreasi* provider
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
14. INVESTMENT IN SUBSIDIARY COMPANIES (cont’d)Detailsofthesubsidiarycompaniesareasfollows(cont’d):-
* CompaniesnotauditedbySJGrantThornton.
# Notrequiredtobeauditedincountryofincorporation.
@ During the financial year, the Group had terminated the share sale agreement on acquisition of asubsidiary,PTGalaksiPublishindo.TheeffectofthedeemeddisposalwasnotdisclosedinthefinancialstatementsastheDirectorsareintheopinionthattheeffectisimmaterial.
15. FIXED DEPOSITS WITH A LICENSED BANK
Group
(i) FixeddepositsamountingtoRMNil(2008:RM80,000)areheldintrustbyDirectorofsubsidiarycompanyandhavebeenpledged toa licensedbank forbanking facilities granted to subsidiarycompany.
(ii) Fixed deposits amounting to RM538,503 (2008: RM518,000) have been pledged to a licensedbankforbankingfacilitiestothesubsidiarycompanyinaccordancewithNote8(a)totheFinancialStatements.
16. AMOUNT DUE FROM/ (TO) ASSOCIATE COMPANIES Amountdue from/ (to)associatecompaniesareunsecured,bearno interestandare repayableupon
demand.
17. TRADE RECEIVABLES
Group
2009RM
2008RM
Tradereceivables 23,159,555 25,172,226
Less:Allowancefordoubtfuldebts (845,132) -
22,314,423 25,172,226
Thecurrencyexposureprofileofthetradereceivablesareasfollows:-
Group
2009RM
2008RM
RinggitMalaysia 9,346,443 13,838,595
IndonesiaRupiah 11,799,800 5,935,755
SingaporeDollar 10 85,976
VietnamDong 398,879 227,392
USDollar 769,291 5,084,508
22,314,423 25,172,226
ThenormalcredittermsgrantedbytheGrouptothetradereceivablesrangingfrom30daysto90days.
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
18. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS
Group Company2009rm
2008rm
2009rm
2008rm
Otherreceivables 12,631,845 15,450,814 - -
Deposits 741,254 906,363 - -
Prepayments 1,071,130 1,697,354 13,875 86,510
14,444,229 18,054,531 13,875 86,510
Includedinotherreceivables,depositsandprepaymentsoftheGroupareadvancesamountedtoRM8,645,050(2008:RM11,700,000)foraninvestmentinajointresearchanddevelopmentprojectforafinancialtransactionsystem.
19. AMOUNT DUE FROM/ (TO) SUBSIDIARY COMPANIESAmount due from/ (to) subsidiary companies are unsecured, bear no interest and have no fixed terms ofrepayment.
20. CASH AND CASH EQUIVALENTS
Group Company2009rm
2008rm
2009rm
2008rm
Cashandbankbalances 13,549,552 15,562,865 96,812 84,535
Depositwithlicensedbank 414,252 - - -
Bankoverdraft - (967,571) - -
��,���,�0� 14,595,294 96,812 84,535
Thecurrencyexposureprofileofcashandcashequivalentsareasfollows:-
Group Company�00�RM
�00�RM
�00�RM
�00�RM
RinggitMalaysia 10,459,359 11,679,819 96,812 84,535
IndonesiaRupiah 1,444,847 2,242,505 - -
SingaporeDollar 210,283 162,854 - -
VietnamDong 231,909 23,316 - -
USDollar 1,617,406 486,800 - -
��,���,�0� 14,595,294 96,812 84,535
ThebankoverdrafthasbeensecuredbywayofsecurityasdisclosedinNote8totheFinancialStatements.
Interestrateischargedat1.50%perannumabovethebank’sBaseLendingRate.
(cont’d)
Annu
al Report 2009
�0
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
21. TRADE PAYABLES
Group
2009RM
2008RM
Tradepayables 5,585,036 3,170,744
Thecurrencyexposureprofileofthetradepayablesisasfollows:-
Group
2009RM
2008RM
RinggitMalaysia 966,820 961,831
IndonesiaRupiah 4,617,795 113,975
SingaporeDollar 421 35,071
USDollar - 2,059,867
5,585,036 3,170,744
Thenormalcredittermsgrantedbythetradepayablesrangefrom30daysto90days.
22. OTHER PAYABLES AND ACCRUALS
Group Company2009rm
2008rm
2009rm
2008rm
Accruals 2,299,404 2,067,496 63,400 55,862
Otherpayables 849,271 803,980 34,628 49,040
3,148,675 2,871,476 98,028 104,902
23. AMOUNT DUE TO DIRECTORSTheamountduetoDirectorsisunsecured,bearnointerestandhasnofixedtermofrepayment.
24. REVENUE
Group2009RM
2008RM
Servicerendered 54,937,777 65,002,293
Saleofgoods - 143,388
54,937,777 65,145,681
(cont’d)
Annu
al Report 2009
�0
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
25. COST OF SALES
Group
2009RM
2008RM
Costofservicerendered 40,749,318 44,651,775
Saleofgoods - 246,406
40,749,318 44,898,181
26. FINANCE COSTS
Group
2009RM
2008RM
Interestexpenseson:-
-bankoverdraft 44,574 -
-banktermloans 708,094 203,168
-hirepurchase 88,321 114,410
840,989 317,578
27. LOSS BEFORE TAXATION
Lossbeforetaxationhasbeendeterminedaftercharging:-
Group Company2009rm
2008rm
2009rm
2008rm
Allowancefordoubtfuldebts 845,132 - - -
Amortisationof:-
-intangibleassets 871,310 625,163 - -
-developmentexpenditure 814,699 1,818,559 - -Auditors’remunerationSJGrantThornton-statutoryaudits
-currentyear 70,000 80,644 13,000 13,000
-underprovisioninprioryear 6,225 13,600 - 1,000
-otherservices 3,000 - 3,000 -
Otherexternalauditors
-statutoryaudits
-currentyear 55,581 31,882 - -
-underprovisioninprioryear 480 - - -
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
27. LOSS BEFORE TAXATION (cont’d)Lossbeforetaxationhasbeendeterminedaftercharging(cont’d):-
Group Company2009rm
2008rm
2009rm
2008rm
Depreciationofproperty,plantandequipment(Note9) 3,082,897 1,513,480 - -
Directors’remuneration
- Fees 101,195 81,053 94,000 75,540
-Otheremoluments 835,051 380,290 11,000 7,200Lossondisposalofproperty,plantandequipment - 29,424 - -
Lossondisposalofsubsidiarycompany - ���,��� - -
Rentalof:-
-premises 521,202 498,590 - -
-others 10,133 578 - -
Andcrediting:-Allowancefordoubtfuldebtsnolongerrequired - 1,389,912 - -
Interestincome 108,815 184,856 345 42,217
ThedetailsofDirectors’remunerationoftheGroupandoftheCompanyareasfollows:-
Group Company2009rm
2008rm
2009rm
2008rm
DirectorsoftheGroupExecutiveDirectors-Salaries,bonusandallowances 736,000 338,870 - --Contributiontodefinedcontributionplan 86,760 33,600 - -
-Otherbenefits 1,291 620 - -
824,051 373,090 - -Non-ExecutiveDirectors
-Fees 101,195 81,053 94,000 75,540
-Meetingallowance 11,000 7,200 11,000 7,200
112,195 88,253 105,000 82,740
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
28. TAXATION
Group Company2009rm
2008rm
2009rm
2008rm
Currentyearprovision:-
-Malaysianincometax - 44,900 - -
-Foreignincometax 18,639 388,025 - -
18,639 432,925 - -
(Over)/underprovisioninprioryear:-
-Malaysianincometax (110) 1,229 - (4,110)
18,529 434,154 - (4,110)
Malaysianincometaxiscalculatedatthestatutoryrateof25%(2008:26%)oftheestimatedtaxableprofitsforthefiscalyear.Thecomputationofdeferredtaxasat30April2009hasreflectedthesechanges
Tax expense for other taxation authorities are calculated at the rates prevailing in those respectivejurisdictions.
Thetaxationprovisionof theGroupis lowerthanthestatutorytaxrate.Thedisproportionatetaxratewasa resultofpioneer statusenjoyedbyoneof its subsidiarycompany,NextnationNetworkSdn.Bhd., thusresultinginitsprofitbeingexemptedfromtax.
Anumericalreconciliationbetweentheaverageeffectivetaxrateandthestatutorytaxrateareasfollows:-
Group Company2009rm
2008rm
2009rm
2008rm
Lossbeforetaxation (7,179,294) (5,663,507) (474,531) (438,831)Incometaxatrateof25%(2008:26%) (1,794,824) (1,472,512) (118,633) (114,096)
Incomenotsubjecttotax - (672,744) - -Non-allowableexpenses 923,917 2,550,059 118,633 114,096TaxsavingasaresultoffirstRM500,000taxableincometaxedat20% - (10,086) - -
Differentoftaxrateinothercountry 285,815 (411,700) - -Deferredtaxassetsnotrecognisedinthefinancialstatements 603,731 449,908 - -
Currentfinancialyeartaxexpenses 18,639 432,925 - -(Over)/underprovisioninpreviousfinancialyear (110) 1,229 - (4,110)
Totaltaxexpenses 18,529 434,154 - (4,110)
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
29. LOSS PER ORDINARY SHARE
Group(a) Basic
Basiclossperordinaryshareforthefinancialyeariscalculatedbydividingthelossforthefinancialyearattributable toordinaryequityholdersof theCompanyby theweightedaveragenumberofordinarysharesoutstandingduringthefinancialyear.
Group
2009RM
2008RM
Netlossforthefinancialyear (6,710,624) (8,632,032)Weightedaveragenumberofordinarysharesinissue(unit) 415,800,000 415,430,137
Basiclosspershare(sen) (1.61) (2.08)
(b) Diluted
Duringthefinancialyear,therewerenodilutiveordinarysharesinissuethatgavedilutedeffecttotheearningspershare.
30. EMPLOYEES BENEFIT EXPENSES
Group
2009RM
2008RM
Staffcosts(includingDirectors’remuneration)
-chargedtoincomestatements 8,483,077 7,847,134
-includedinresearchanddevelopmentexpenditure 2,256,710 2,617,783
10,739,787 10,464,917
31. CONTINGENT LIABILITY
Group
2009RM
2008RM
CorporateguaranteegrantedtoasubsidiaryCompany 19,079,989 16,382,080
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
32. CAPITAL COMMITMENT
Group
2009RM
2008RM
Authorisedandcontractedfor:-
-purchaseofofficeequipment - 4,301,380
-purchaseofproperties 2,539,199 3,054,710
2,539,199 7,356,090
33. RELATED PARTY DISCLOSURE
For the purposes of these financial statements, parties are considered to be related to the Group iftheGrouphas theability,directlyor indirectly, tocontrol thepartyorexercise significant influenceoverthepartyinmakingfinancialandoperatingdecisions,orviceversa,orwheretheGroupandtherelatedpartyaresubjecttocommoncontrolorcommonsignificantinfluences.Relatedpartiesmaybeindividualsorotherentities.
TheGrouphasarelatedpartyrelationshipwithitsDirectorsandotherkeymanagementpersonnel.
Transactions with Key Management Personnel
Key Management Personnel Compensation
TheremunerationofDirectorsandothermembersofkeymanagementpersonnelduringthefinancialyearareasfollows:-
Group
2009RM
2008RM
Salariesandothershort-termemployeebenefits 1,968,969 1,347,430
Post-employmentbenefits:-
Definedcontributionplan 232,937 143,604
2,201,906 1,491,034
OthermembersofkeymanagementpersonnelcomprisepersonotherthantheDirectorsoftheGroup,havingauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheGroupeitherdirectlyorindirectly.
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
33. RELATED PARTY DISCLOSURE (cont’d)Theoutstandingbalancesarisingfromtherelatedpartytransactionareasfollows:-
Group Company2009rm
2008rm
2009rm
2008rm
Receivablefromassociatecompany 1,050,024 2,660,031 - -Receivablesfromsubsidiarycompanies - - 36,373,559 36,797,504
1,050,024 2,660,031 36,373,559 36,797,504
Payabletoassociatecompany 240,760 231,814 - -
Payabletosubsidiarycompanies - - 2,143 1
240,760 231,814 2,143 1
34. FINANCIAL INSTRUMENTS (a) Interestraterisk
Theinterestrateriskthatfinancialinstruments’valueswillfluctuateasaresultofchangesinmarketinterest rates and the effective average interest rates on classes of financial assets and financialliabilitiesareasfollows:-
Less than1 financial
YearRM
1 to 5 financial
yearsRM
More than 5 financial
yearsRM
TotalRM
Effective interest rate during the financial
year
Group2009Financial assetFixeddepositswithalicensedbank 414,252 - 538,503 952,755
2.60%to2.90%
Financial liabilities
Financepayables 523,649 747,150 73,283 1,344,0822.49%to
4.10%
Termloans 2,133,850 5,914,194 2,620,030 10,668,0745.65%to
7.00%
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
34. FINANCIAL INSTRUMENTS (cont’d) (a) Interestraterisk(cont’d)
Less than1 financial
YearRM
1 to 5 financial
yearsRM
More than 5 financial
yearsRM
TotalRM
Effective interest rate during the financial
year
Group2008Financial assetFixeddepositswithalicensedbank 80,000 - 518,000 598,000
3.50%to7.00%
Financial liabilities
BankOverdraft 967,571 - - 967,571 8.25%
Financepayables 355,634 930,968 24,384 1,310,9862.65%to
4.87%
Termloans 2,871,572 2,735,351 2,259,273 7,866,1963.85%to
7.00%
(b) Creditrisk
Cash deposits and trade receivables may give rise to credit risk which requires the loss to berecognisedifacounterpartyfailstoperformascontracted.ItistheGroup’spolicytomonitorthefinancialstandingofthesecounterpartiesonanongoingbasistoensurethattheGroupisexposedtominimalcreditrisk.
TheGroup’sprimaryexposuretocreditriskarisesthroughitstradereceivables.TheGroup’stradingtermswithitscustomersaremainlyoncredit.Thecreditperiodisgenerallyforaperiodofone(1)month,extendinguptothree(3)monthsformajorcustomers.TheGroupseekstomaintainstrictcontroloveritsoutstandingreceivablesviaacreditcontrolpolicytominimisecreditrisk.Overduebalancesarereviewedregularlybycreditcontrolcommittee.
TheGroup’shistoricalexperiencein thecollectionof tradereceivables fallswithintherecordedallowances.Duetothesefactors,theDirectorsbelievethatnoadditionalcreditriskbeyondamountsprovidedfordoubtfuldebtsisinherentintheGroup’stradereceivables.
In respect of the deposits, cash and bank balances placed with major financial institutions inMalaysia,Singapore,Thailand, IndonesiaandChina, theDirectorsbelieve that thepossibilityofnon-performancebythesefinancialinstitutionsisremoteonthebasisoftheirfinancialstrength.
(c) Fairvalues
The carrying amounts of financial assets and liabilities of the Group at the balance sheet dateapproximatedtheirfairvalues.
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
35. SEGMENT REPORTINGTheGroupoperatespredominantlyinonebusinesssegmentandtheyoperateintwogeographicalareasoftheworldasfollows:-
2009Malaysia
rmOverseas
rmEliminations
rmConsolidated
rm
RevenueExternal 46,474,449 20,357,784 (11,894,456) 54,937,777
ResultSegmentresultInterestincome
(4,839,418)58,275
(4,038,814)181,652
2,300,000-
(6,578,232)239,927
LossfromoperationsFinancecosts
(4,781,143)(805,966)
(3,857,162)(35,023)
2,300,000-
(6,338,305)(840,989)
LossbeforetaxationTaxation
(7,179,294)(18,529)
Lossforthefinancialyear (7,179,823)
AssetsSegmentassetsTaxrecoverable
390,474,417586,117
20,577,331505,078
(323,766,302)-
87,285,4461,091,195
Consolidatedtotalassets 88,376,641
LiabilitiesSegmentliabilities 296,751,937 55,531,256 (328,368,181) 23,915,012
Other informationCapitalexpenditureDepreciationAmortisationofintangibleassetsAmortisationofdevelopmentexpenditure
8,125,4072,221,627
-
814,699
913,064861,270871,310
-
---
-
9,038,4713,082,897
871,310
814,699
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
noteS to the fInanCIal StatementS30 April 2009
35. SEGMENT REPORTING (cont’d)TheGroupoperatespredominantlyinonebusinesssegmentandtheyoperateintwogeographicalareasoftheworldasfollows(cont’d):-
2008Malaysia
rmOverseas
rmEliminations
rmConsolidated
rm
RevenueExternal 56,216,503 34,738,215 (25,809,037) 65,145,681
ResultSegmentresultInterestincome
(1,024,395)90,221
(4,506,390)94,635
--
(5,530,785)184,856
LossfromoperationsFinancecosts
(934,174)(291,426)
(4,411,755)(26,152)
--
(5,345,929)(317,578)
LossbeforetaxationTaxation
(5,663,507)(434,154)
Lossforthefinancialyear (6,097,661)
AssetsSegmentassetsTaxrecoverable
108,025,389458,805
23,506,89328,706
(44,306,458)-
87,225,824487,511
Consolidatedtotalassets 87,713,335
LiabilitiesSegmentliabilities 15,233,243 49,955,706 (48,764,868) 16,424,081
Other informationCapitalexpenditureDepreciationAmortisationofintangibleassetsAmortisationofdevelopmentexpenditure
10,042,716938,389
-
1,818,559
1,500,459575,091625,163
-
---
-
11,543,1751,513,480
625,163
1,818,559
36. MATERIAL LITIGATION On22January2009,awholly-ownedsubsidiaryof theCompany,UsapeNelsonWirelessSdn.Bhd.
(“Usape”),hadserveawritofsummonsandstatementofclaimamountingtoRM19,916,823toMarcoKioskBerhad(“MKB”or“Defendant”)forbreachofpartnershipagreemententeredintobetweenUsapeandMKBdated2July2004.On10March2009,theDefendanthasenteredtheirstatementofdefence.Thesuitiscurrentlyinthestageofcasemanagementmeeting.
TheDirectorsareoftheopinionthatthewritofsummonsandstatementofclaimsisnotexpectedtohaveanymaterialfinancialandoperatingimpactontheGroupasatdateofthisreport.
(cont’d)
Annu
al Report 2009
�0
Annual Report 2009
��
ThedetailsofpropertiesownbytheGroupasat30April2009aresetoutbelow:
Location
Land/Built-up Area (sq/ft)
Description/Existing use
Age of Building
(year)Date of
Acquisition
Net Book Value as at
30 April 2009(RM)
Unit909,BlockF,PhileoDamansaraOne,PetalingJaya,Selangor 2,181
Freeholdofficeunit/Office 8 29/4/2004 444,824
Unit503,BlockF,PhileoDamansaraOne,PetalingJaya,Selangor 2,167
Freeholdofficeunit/Office 8 8/10/2004 465,110.43
Unit706,BlockF,PhileoDamansaraOne,PetalingJaya,Selangor 2,181
Freeholdofficeunit/Office 8 23/11/2004 455,583.33
Unit/LotA-05NZXCommercialCentre 7,781
Freeholdofficeunit/Office 2 25/7/2007 1,883,794.67
Unit/LotA-06NZXCommercialCentre 7,781
Freeholdofficeunit/Office 2 25/7/2007 1,883,794.67
MegaKuninganBaratKav-E-4-3,UnitOL3.15&18,KuninganTimurSetiaBudiJakartaSelatan12950Indonesia 5,031
Freeholdofficeunit/Office 2 12/7/2007 258,554
KomplekApartmentTamanRasuna,Tower4UnitO.B.27.B,JlHRRasunaSaidJakarta12960Indonesia 747
FreeholdCondominium 12 29/8/2007 215,352
BlockB-09,Lot53579,PekanKinraraDistrictofPetalingStateofSelangorDarulEhsan 9,726
Freeholdofficeunit/Office
Underconstruction 11/1/2008 3,174,011
Unit709CasaDamansaraCondominium 1,153
FreeholdCondominium 9 11/5/2008 286,594.81
ApartmentSudirmanParkUnitA/26/CFJl.K.H.MasMansyurKav.35JakartaPusatIndonesia 893.08
FreeholdApartment 5 13/9/2008 169,616
lISt of propertIeS
Annu
al Report 2009
�0
Annual Report 2009
��
AuthorizedShareCapital RM200,000,000IssuedandPaid-upShareCapital RM41,580,000ClassofShares OrdinarySharesofRM0.10eachNumberofShareholders 3,376VotingRights Onevoteperordinaryshare
List of Substantial Shareholders as per the Register of Substantial Shareholders as at 4 September 2009
Substantial Shareholders DirectNo. of Shares Held
% Indirect %SmartTowerSdnBhd 113,590,000 27.32 - -
KenangaNominees(Asing)SdnBhdExemptanforPhillipSecuritiesPteLtd 21,300,000 5.12 - -
TeyPorYee 10,177,500 2.45 113,590,000(1) 27.32
SeePohYee 5,930,000 1.43 113,590,000(1) 27.32
TeyPorChen 8,653,500 2.08 113,590,000(1) 27.32
Note:(1) Deemed interested by virtue of their direct substantial shareholdings in Smart Tower Sdn Bhd.
List of Director’s Shareholdings as per the Register of Directors’ Shareholdings as at 4 September 2009
Directors’ Shareholdings DirectNo. of Shares Held
% Indirect %TeyPorYee 10,177,500 2.45 113,590,000(1) 27.32
SeePohYee 5,930,000 1.43 113,590,000(1) 27.32
YapSiokTeng 150,000 0.04 - -
FuLitFung - - - -
LeouThiamLai - - - -
UngkuA.RazakbinUngkuA.Rahman - - - -
Note:(1) Deemed interested by virtue of their direct substantial shareholdings in Smart Tower Sdn Bhd.
Distribution of Shareholdings as per the Record of Depositors as at 4 September 2009
ShareholdingsNo. of
Shareholders% of
SareholdersNo. of
Shares Held% of Issued
Share Capital1 – 99 20 0.59 975 0.00
100 – 1,000 84 2.49 58,375 0.01
1,001 – 10,000 1,063 31.49 6,863,550 1.65
10,001 – 100,000 1,733 51.33 69,081,450 16.61
100,001 – 20,789,999 474 14.04 204,905,650 49.28
20,790,000andabove 2 0.0� ���,��0,000 ��.��
Total 3,376 100.00 415,800,000 100.00
analySIS of ShareholDInGSas at 4 September 2009
Annu
al Report 2009
��
Annual Report 2009
��
Thirty (30) Largest Securities Account Holders as per the Record of Depositors as at 4 September 2009
no. Name of ShareholdersNo of
Shares Held% of Issued
Share Capital�. SmartTowerSdnBhd 113,590,000 27.32
�. KenangaNominees(Asing)SdnBhdExemptanforPhillipSecuritiesSdnBhd 21,300,000 5.12
�. GanCheongGap 11,440,800 2.75
�. KumpulanModalPerdanaSdnBhd 8,268,400 1.99
�. TeyPorYee 7,153,500 1.72
�. SeePohYee 5,930,000 1.43
�. GohMeiYuin 5,000,000 1.20
�. TeyPorChen 4,536,000 1.09
�. RHBNominees(Tempatan)SdnBhdPledgedSecuritiesAccountforOngKahHuat 4,516,000 1.09
�0. TeyPorChen 4,117,500 0.99
��. YapBeeHua 3,491,650 0.84
��. HLGNominee(Tempatan)SdnBhdHongLeongBankBhdforChristopherCheeMunHoe 3,380,000 0.81
��. LowKimSoi@LowTienSang 3,294,600 0.79
��. TeyPorYee 3,024,000 0.73
��. PublicNominees(Tempatan)SdnBhdPledgedSecuritiesAccountforLeeYihLeang(E-PPG) 2,500,000 0.60
��. HDMNominees(Tempatan)SdnBhdPledgedSecuritiesAccountforOngKahHuat(M03) 2,297,800 0.55
��. ChiaBengTat 2,044,500 0.49
��. BunSekYen 2,010,000 0.48
��. CimsecNominees(Asing)SdnBhdCIMBBankforWangWei-Hsin(MP0043) 1,784,200 0.43
�0. LeeBoonHan 1,700,000 0.41
��. SewChooiLan 1,545,000 0.37
��. KohLyeSiang 1,500,000 0.36
��. MedicalCorporationAustralasiaLimited 1,500,000 0.36
��. MaybanNominees(Tempatan)SdnBhdPledgedSecuritiesAccountforOngKokThye 1,356,000 0.33
��. MaybanNominees(Tempatan)SdnBhdPledgedSecuritiesAccountforChangFokChin 1,300,000 0.31
�� ViLeongKoon 1,210,000 0.29
��. KhooHuaSeng 1,185,700 0.29
��. TanSiewKiow 1,170,000 0.28
��. KennethVun@CunYunLiun 1,101,000 0.26
�0. SJSecNominees(Tempatan)SdnBhdPledgedSecuritiesAccountforChuahChongGuan(SMT) �,0��,�00 0.��
analySIS of ShareholDInGS
Annu
al Report 2009
��
Annual Report 2009
��
NOTICE IS HEREBY GIVENthattheFifthAnnualGeneralMeetingoftheCompanywillbeheldatDewanBerjaya,BukitKiara Equestrian&CountryResort, JalanBukitKiara,Off JalanDamansara, 60000KualaLumpuronMonday,26October2009at9:00a.m.forthefollowingpurposes:-
AGENDA
1. ToreceivetheAuditedFinancialStatementsforthefinancialyearended30April2009togetherwiththeReportsoftheDirectorsandtheAuditorsthereon. (Resolution1)
2. Toapprove thepaymentofDirectors’Fees for the financialyearended30April2009. (Resolution2)
3. Tore-electthefollowingDirectorswhoshallretireinaccordancewithArticle83oftheCompany’sArticlesofAssociation,andbeingeligible,haveofferedthemselvesforre-election:-
(a)Mr.SeePohYee(b)Mr.LeouThiamLai
(Resolution3)(Resolution4)
4. To re-appoint Messrs. SJ Grant Thornton as Auditors of the Company until theconclusionofthenextAnnualGeneralMeetingandtoauthorisetheDirectorstofixtheirremuneration. (Resolution5)
5. Totransactanyotherordinarybusinessofwhichduenoticeshallhavebeengiven.
ByOrderoftheBoard
CHUA SIEW CHUAN (MAICSA 0777689)TAN AI NING (MAICSA 7015852)CompanySecretaries
KualaLumpur29September2009
Notes:
1. Inrespectofdepositedsecurities,onlymemberswhosenamesappearintheRecordofDepositorson19October2009(“GeneralMeetingRecordofDepositors”)shallbeeligibletoattendtheMeeting.
2. AmemberoftheCompanyentitledtoattendandvoteattheMeetingisentitledtoappointatleastone(1)proxytoattendandvoteinhisstead.AproxymaybutneednotbeamemberoftheCompanyandamembermayappointanypersontobehisproxywithoutlimitationandtheprovisionofSection149(1)(b)(c)and(d)oftheCompaniesAct,1965shallnotapplytotheCompany.
3. WhereamemberoftheCompanywhoisanauthorisednomineeasdefinedintheMalaysianSecuritiesIndustry(CentralDepositories)Act,1991mayappointatleastone(1)proxyinrespectofeachSecuritiesAccountwhichitholdswithordinarysharesoftheCompanystandingtothecreditofthesaidSecuritiesAccount.
4. Whereaholderappointstwoormoreproxies,theappointmentshallbeinvalidunlesshespecifiestheproportionsofhisshareholdingstoberepresentedbyeachproxy.
notICe of annual General meetInG
Annu
al Report 2009
��
Annual Report 2009
��
5. The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney dulyauthorisedinwritingorif theappointorisacorporation,eitherunderitscommonsealorunderthehandofanofficerorattorneydulyauthorised.
6. Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority,ifany,underwhichitissignedoranotariallycertifiedcopyofthatpowerorauthority,mustbedepositedattheRegisteredOfficeoftheCompanyatLevel7,MenaraMilenium,JalanDamanlela,PusatBandarDamansara,DamansaraHeights,50490KualaLumpurnotlessthan48hoursbeforethetimeforholdingtheMeetingoratanyadjournmentthereof.
notICe of annual General meetInG
(cont’d)
Annu
al Report 2009
��
Annual Report 2009
��
Form of Proxy
No.ofSharesHeld
Nextnation Communication Berhad(CompanyNo.660055-H)
I/We, ……..……………………………………….......................…….............….. NRICNo. …................………………………....…....(FULLNAMEINBLOCKCAPITALS)
of ……………………………………………………………………………….....................................................………... beingamember(s)(FULLADDRESS)
ofNEXTNATIONCOMMUNICATIONBERHAD,herebyappoint.......................................…………..............………...………………….(FULLNAME)
(NRICNo. ………………………………...........…….............................………) of ……..………….....................………………………(FULLADDRESS)
orfailinghim/her,………….............………………………............................…. (NRICNo. …...…….....………........…………………)(FULLNAME)
..………………………………………………..........................................……………………………......……………………………………..(FULLADDRESS)
asmy/ourproxytovoteforme/usandonmy/ourbehalfattheFifthAnnualGeneralMeetingoftheCompanyheldatDewanBerjaya,BukitKiaraEquestrian&CountryResort,JalanBukitKiara,OffJalanDamansara,60000KualaLumpuronMonday,26October2009at9:00a.m.oratanyadjournmentthereof.
Pleaseindicatean“X”inthespaceprovidedbelowonhowyouwishyourvotestobecasted.Ifnospecificinstructionastovotingisgiven,theProxywillvoteorabstainfromvotingathis/herdiscretion.
RESULUTIONS FOR AGAINST
Resolution1 ToreceivetheAuditedFinancialStatementsforthefinancialyearended30April2009togetherwiththeReportsoftheDirectorsandtheAuditorsthereon.
Resolution2 ToapprovethepaymentofDirectors’Feesforthefinancialyearended30April2009.
Resolution3 Tore-electMr.SeePohYeewhoshallretireinaccordancewithArticle83oftheCompany'sArticlesofAssociation.
Resolution4 Tore-electMr.LeouThiamLaiwhoshallretireinaccordancewithArticle83oftheCompany'sArticlesofAssociation.
Resolution5Tore-appointMessrs.SJGrantThorntonasAuditorsof theCompanyuntil theconclusionofthenextAnnualGeneralMeetingof theCompanyand toauthorise theDirectors to fix theirremuneration.
Signedonthis…......dayof...............................2009
.......................................................................SignatureofMember(s)/CommonSeal
Notes:
1. Inrespectofdepositedsecurities,onlymemberswhosenamesappearintheRecordofDepositorson19October2009(“GeneralMeetingRecordofDepositors”)shallbeeligibletoattendtheMeeting.
2. AmemberoftheCompanyentitledtoattendandvoteattheMeetingisentitledtoappointatleastone(1)proxytoattendandvoteinhisstead.AproxymaybutneednotbeamemberoftheCompanyandamembermayappointanypersontobehisproxywithoutlimitationandtheprovisionofSection149(1)(b)(c)and(d)oftheCompaniesAct,1965shallnotapplytotheCompany.
3. WhereamemberoftheCompanywhoisanauthorisednomineeasdefinedintheMalaysianSecuritiesIndustry(CentralDepositories)Act,1991mayappointatleastone(1)proxyinrespectofeachSecuritiesAccountwhichitholdswithordinarysharesoftheCompanystandingtothecreditofthesaidSecuritiesAccount.
4. Whereaholderappointstwoormoreproxies,theappointmentshallbeinvalidunlesshespecifiestheproportionsofhisshareholdingstoberepresentedbyeachproxy.
5. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointororofhisattorneydulyauthorisedinwritingoriftheappointorisacorporation,eitherunderitscommonsealorunderthehandofanofficerorattorneydulyauthorised.
6. Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority,ifany,underwhichitissignedoranotariallycertifiedcopyofthatpowerorauthority,mustbedepositedattheRegisteredOfficeoftheCompanyatLevel7,MenaraMilenium,JalanDamanlela,PusatBandarDamansara,DamansaraHeights,50490KualaLumpurnotlessthan48hoursbeforethetimeforholdingtheMeetingoratanyadjournmentthereof.
Annu
al Report 2009
��
fold this flap foR sealing
fold heRe
fold heRe
Nextnation Communication Berhad Level7,MenaraMilenium, JalanDamansara, PusatBandarDamansara, DamansaraHeights, 50490KualaLumpur.
Stamp
Annual Report 2009
Nextnation Communication Berhad (660055-H)
Nextnation Communication Berhad(660055-H)
Corporate OfficeUnit 909 Block F Phileo Damansara One, No. 9, Jalan 16/11, 46350 Petaling Jaya, Selangor Darul Ehsan, Malaysia.
Tel : +603 7494 4839 Fax : +603 7494 4836
Research & Development Officec/o NTT MSC Sdn Bhd. No. 43000 Jalan APEC, 63000 Cyberjaya, Selangor Darul Ehsan, Malaysia
Tel : +603 8311 2000 Fax : +603 8311 2090
www.nextnationnet.com
Nextnation C
omm
unication Berhad
(660055-H)
Annual R
eport 2009