dscsol-annualreport2009 (1.4mb)
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DSC
SOLUTIONS
BERHAD
I
AnnualReport2009
DSC SOLUTIONS BERHAD(Company Number : 721605-K )
(Incorporated in Malaysia under the Companies Act 1965)
Annual R eport 2009
DSC Solutions Berhad
No. 2-GM, Jalan PJS 10/2
Subang Indah, 46050 Petaling Jaya
Selangor, Malaysia
Tel : (603) 5635 8889
Fax : (603) 5632 4790
Email : [email protected]
Website : www.dsc.com.my
The admission of DSC Solutions Berhad to the Official List was sponsored by Kenanga Investment Bank Berhad.
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2 CrprateInrmatin
3 CrprateStructure
4-7 Directrs'Prle
8-9 ChairmansStatement
10-13 StatementCrprateGvernance
14-16 AuditCmmitteeReprt
17 StatementnInternalCntrl
18 StatementDirectrsRespnsibility
19 AdditinalCmplianceInrmatin
20 FinancialStatements
47 AnalysisSharehldings
49 NticeAnnualGeneralMeeting
50 StatementAccmpanyingNticeAnnualGeneralMeeting
PrxyFrm
cntents
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DSC SOLUTIONS BERHAD (721605-K)
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2BOARD OF DIRECTORSIndependent Non-Executive Chairman DatDr.MhamedIbrahimbinAWahid
Group Managing Director SeahLiangChiang
Executive Directors ChuaYckPeng WngEeSing LengSingWeng
Independent Non-Executive Directors MukSaiTat EdwardKhrYewHeng
AUDIT COMMITTEE
Chairman MukSaiTat
Members DatDr.MhamedIbrahimbinAWahid EdwardKhrYewHeng
NOMINATION COMMITTEE
Chairman DatDr.MhamedIbrahimbinAWahid
Members MukSaiTat EdwardKhrYewHeng
REMUNERATION COMMITTEE
Chairman EdwardKhrYewHeng
Members DatDr.MhamedIbrahimbinAWahid MukSaiTat
HEAD OFFICE
N.2-GM,JalanPJS10/2SubangIndah46050PetalingJayaSelangrDarulEhsan
Teln.:+60356358889Faxn.:+60356324790Emailaddress:[email protected]:www.dsc.cm.my
67AyerRajahCrescent#02-25AyerRajahIndustrialEstateSingapre136650
Teln.:+6566657500Faxn.:+6566657522
Emailaddress:[email protected]:www.dsc.cm.sg
COMPANY SECRETARIESTeaSrHua(MACS01324)ChanBeeFang(MAICSA7032385)
REGISTERED OFFICE
ThirdFlr,N.79(RmA)JalanSS21/60,DamansaraUtama47400PetalingJayaSelangrDarulEhsan
Teln.:603-77284778Faxn.:603-77223668
SPONSORKenanga Investment Bank Berhad801,8thFlrKenangaInternatinalJalanSultanIsmail50250KualaLumpur
Teln.:603-20275555Faxn.:603-21646690
AUDITORS
Messrs. SJ Grant ThorntonLevel11FaberImperialCurt
JalanSultanIsmail50250KualaLumpur
Teln.:+60326924022Faxn.:+60327325119
PRINCIPAL BANKERS
MalayanBankingBerhadRHBBankBerhadAllianceBankMalaysiaBerhadDBSBankLtd
SHARE REGISTRAR
Tricor Investor Services Sdn Bhd(Formerly known as Tenaga Koperat Sdn Bhd)Level17,TheGardensNrthTwerMidValleyCity,LingkaranSyedPutra59200KualaLumpur
Teln.:+60322643883Faxn.:+60322821886
STOCK EXCHANGE LISTING
ACEMarketBursaMalaysiaSecuritiesBerhadWebsite:www.bursamalaysia.cmStckName:DSCSoLStckCde:0152
CORPORATE INFORMATION
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DSC SOLUTIONS BERHAD (721605-K)
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3
CORPORATE STRUCTURE
100% 100%
100%
(Investment holding & R & D)
(MSC Malaysia Status Company)
DSC Solutions Berhad
(Provision of integrated AIDC
solutions, software and
engineering services)
Digital Scanning
Corporation Pte Ltd
(Dormant)
Digital Scanning
Corporation
(Suzhou) Co. Ltd
(Provision of integrated AIDC
solutions, software and
engineering services)
DSC Systems (M) Sdn Bhd
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4
DIRECTORS' PROFILE
Seah Liang Chiang,Malaysian,aged46Group Managing Director
B. Sc (Economics), National University o Singapore (1987)
Mr.SeahistheFunderandGrupManagingDirectrtheCmpany.HewasappintedttheBardn23March2006
andisasubstantialsharehldertheCmpany.HegraduatedrmNatinalUniversitySingaprewithanEcnmics
degreein1987.
Mr.SeahleadsthemanagementteaminDSCGrup.HehasbeenintheAIDCindustryrver18yearsandintheITindustry
rver20yearswiththerequisitein-depthexperienceandknwledgeinthevariusaspectstheAIDCindustry.
Upngraduatin,hejinedtheITindustryasaSalesExecutiveinCmputerIndustriesPteLtd.Hejinedthecmputer
divisinTriTechPteLtdsix(6)mnthslater.Withinthesameyear,hejinedaUS-basedMNCcmpanydealingwith
AIDCprducts,DynamarCmputerPrductsPteLtd,asasalesengineerandwasprmtedtsalesmanagerwithinsix(6)
mnthsservice.Hethendecidedtleavethecmmercialldandsetupacmpanywithaewclleaguesintheindustry,calledDatacrpPteLtd.HewastheSalesDirectrthecmpanyuntil1992.In1993,hedecidedtstartutnhiswn
andestablishedDigital.
Inadditinthiscmmercialandbusinesssuccess,Mr.Seahhasalsbeeninvitedtparticipateinseveralindustry
rumsandbusinesscmmitteesrganisedbytheSingapreGvernment.HewasPresidenttheYungEntrepreneurs
organisatin(2000-2003)(nwknwnas EntrepreneursorganisatinrEo),a cmmitteememberthe Institute
PlicyStudies(2002),cmmitteememberCuncilrCrprateDisclsures&GvernanceunderSingapresMinistry
Finance(2003),Pr-enterprisePanelunderSingapresMinistryTradeandIndustries(2003-present),cmmitteemember
TemasekPlytechnicBusinessAdvisryBard(2003-present),executivecmmitteememberActinCmmitteer
EntrepreneurshipunderSingapresMinistryTradeandIndustriesSingapre(2005-present)andcmmitteemember
ACRAStandingLawReviewFcusGrup(2005-present).
HewasnminatedandwasanalistrtheinauguralPhenixawardbytheSingapreEcnmicDevelpmentBard(EDB)in2002andreceivedtheSpiritEnterpriseAward(SoE)in2007.HisleadershipintheAIDCindustryalsattracted
theattentintheEDBandsubsequentlyDSCGruphadreceivedinvestmentsandgrantsrR&D.
Wong Ee Sing,Malaysian,aged44Executive Director
B. Engineering (Electronics & Electrical), Nanyang Technological University (1990)
M.Sc (Communications & Computing), Nanyang Technological University (1994)
Mr.WngisanExecutiveDirectrtheCmpany.HeisalstheChieTechnicalocertheGrup.Hewasappintedt
theBardn21July2008.HebtainedhisdegreeinElectricalandElectrnicsEngineeringrmNanyangTechnlgical
University,Singaprein1990.
Upngraduatin,hestartedhiscareerinSingapreasaSystemsEngineerwithInternatinalVidePrductsPteLtdmainlyinvlvedinviderecrdingandstreamingtechnlgiesindustry.Hewasinvlvedindevelpmentandtestingactivitiesas
wellasISo9000certicatinprcesses.Inhisur(4)yearswiththecmpany,hehelpeddevelpandmanagetheFactry
AutmatinSystem.InJanuary1995,hejinedPoSBCmputerServicePteLtd,asubsidiarythelargestcnsumerbank
inSingapre,i.e.PoSBBankasaNetwrkEngineer.Hewasinvlvedinthesettingupandcmmissiningthebanks
wideareacmputernetwrk(WAN),internetbankingande-cmmerceplatrms.InJune1997,hewasheadhuntedtjin
NetwrkrElectrnicTransers(S)PteLtd(NETS),thecmpanyperatingSingapreslargestelectrnicpaymentsnetwrk
asaPrjectManager(NETSistheequivalentMEPSinMalaysia).AtNETS,hewastheprjectmanagerverseeingseveral
keymilestnesprjectsthatestablishedSingapreasnetheglbalsuccessstriesintheimplementatinelectrnic
payments.
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5ItwasinNETSthatMr.WnghadhiswrkingexpsurenAIDCtechnlgies,inparticulartechnlgiesadptedridenticatinpurpsesandrsecuredvericatinpurpses.HeletinMarch1999tsetuphiswnITengineeringservices
andprjectcmpany,calledInnlabPteLte.DuethisextendedexpsureinslutindevelpmentandlargescaleAIDC
andelectrnicpaymentprjectimplementatincupledwithseveralcllabratinswithurGrup,hewasengagedbyur
Grupasatechnicalcnsultantin2000.Mr.WngciallyjinedDSCGrupinJanuary2007asChieTechnicalocer.
Mr.Wng,beingdedicatedtcntinuusselimprvement,alshldsaMasterScienceinCmmunicatinsandCmputing
rmNanyangTechnlgicalUniversitySingaprein(1994).Hehasalswnawardsrhisacademicandwrkexcellence.
HereceivedaMeritAwardrbeinganexemplarystarmPoSBin1996,aSingapreNatinalScience&TechnlgyBard
GldMedalawardrbeingthebestverallstudentinhisMastersdegreecursein1994andAsiasBesttheBestprize
inaQualityPrcessCmpetitinrganizedbytheThmpsnGrupin1993.
Mr.Wnghastwelve(12)years experiencein paymentprcessingandinternet servicingindustries.He iscurrently
respnsiblerdevelpmentnewprductsandenhancementexistingmdulesaswellasverseeingtheprduct
testingandcerticatinprcesses.HeisalsurtechnlgycerridentiyingemergingtechnlgiesrelevanttDSCGrup.
Leong Siong Weng,Singaprean,aged35Executive Director
B. Science (Hons), National University o Singapore (2000)
Mr.LengisanExecutiveDirectrtheCmpany.Mr.LengwasappintedttheBardn26octber2009.Hehldsa
generalhnursdegreermNatinalUniversitySingapre.
Upngraduatinin2000,hejinedDigitalasaSalesEngineer.Aseldrivenandhighlymtivatedindividual,hesurpassed
hissalestargetsandwasmadeSalesManagerwithinayear.Hecntinuedtshwhardwrkanddedicatinbysecuring
mremajraccuntsrurGrup.HewasprmtedtthepsitinSalesDirectrin2004andleadsDigitalssalesteam.HecurrentlyservicesmajraccuntsrDSCGrup.
Inhisnine(9)yearswithDSCGrup,hehasledthesalesteamtwinmilestneprjectsrDigitalsuchasThaiSmartcard
Prject,orgaTelcSIMCardsPersrTelkmsel,NUSMatriculatinSmartcardPrject,STAerMiareCardPrject,Star
CruisesGuests/VisitrTrackingPrject.
HisrespnsibilityasSalesDirectrincludesmanagingthesalesteam,rmulatingsalesstrategies,identiyingandappinting
newvalueaddedresellers,identiyingnewpartnersrAIDCturnkeyprjectsandsecuringinternatinalbusiness.
Chua Yock Peng,Singaprean,aged45Executive Director
B. Business Administration, National University o Singapore (1987)
Mdm.ChuaisanExecutiveDirectrtheCmpany.Mdm.ChuawasappintedttheBardn23March2006andisa
substantialsharehldertheCmpany.Mdm.ChuahldsadegreeinBusinessAdministratinrmtheNatinalUniversity
Singapre.
Mdm.Chuagraduatedin1987andwrkedintheeldeventrganisatinandmanagementvenuesrSentsa
DevelpmentCrpratinandSingapreIndrStadium.In1992,shejinedMarinaVillagePteLtdasamarketingexecutive
andgainedexpsureinthecmmercialsectr.Shewasrespnsibleinprvidingmarketingsupprtrtheprmtinal
activitiesinmarketingtheprpertiesdevelpedaswellasassumingtherleprjectmanager,managingthelgistics
tsupprtthemanyradshwsandsalesprgrammesrganised.Sheletin1994andjinedPrudentialAssuranceLtdas
anancialplannerrtw(2)years.
ShejinedDigitalasanoperatinsManagerinchargeceadministratin,custmersupprtandlgisticsin1999.She
assumedtherleoperatinsDirectrsince2004.
DIRECTORS' PROFILE
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6Dato Dr. Mohamed Ibrahim bin A Wahid,Malaysian,aged49Independent NonExecutive Chairman
University o Wales College o Medicine, Cardif, Wales, United Kingdom, (1985)
DatDr.MhamedIbrahimbinAWahidistheIndependentNn-ExecutiveChairmantheCmpanyandwasappinted
ttheBardn 26octber2009.Heis alsChairmantheNminatinCmmitteeandamember bththeAudit
CmmitteeandRemuneratinCmmitteetheCmpany.HegraduatedrmtheUniversityWales,CllegeMedicine,
Cardi,Wales,UnitedKingdmwithamedicaldegreein1985.
HewasappintedaMedicalDirectrandClinicalonclgistCnsultantatWijayaBaruInternatinalMedicalCentrein2008.
HeisalsavisitingClinicalonclgistCnsultantatPantaiMedicalCentre.Hehasbeenpractisingmedicinerver23
yearsandhehasspecialisedinClinicalonclgyr16years.
Upngraduatin,hedidhishusemanshipatSingletn&MrrisnHspital,Swansea,Wales.Ayearlater,hebecamea
SenirHuseocerinNrthTeesGeneralHspital.HewentnttakeuptherlesClinicalonclgyRegistrarinVelindreHspital,Cardi,WalesandRyalFreeHspital,Lndn,EnglandintheearlyninetiesberereturningtMalaysia.Upn
hisreturnin1993,hewasappintedasthelecturerthemedicineUniversitiMalaya.Subsequently,hewasappinted
asHeadtheClinicalonclgyUnittheUniversityMalayaMedicalCentre,KualaLumpur.
Inadditinthiscareersuccess,DatDr.MhdIbrahimA.Wahid,hasbeenappintednseveralcmmittees.Hewasn
theExpertCmmitteetwritetheClinicalPracticeGuidelinesnbreastcancerinMalaysia(2002),aNatinalAdvisryBard
MemberrAstraZenecanIressa(2003),anInternatinalAdvisryBardMemberrScheringAGrBnes(2005),an
InternatinalAdvisryBardMemberrAstraZenecanbreastcancer(2005),anInternatinalAdvisryBardMember
rBayerPharmaceuticaln Sraanib (2006)and aClinicalTrialscmmitteemember theSuthEastAsiaRadiatin
onclgySciety(SEARoS)(2006).
Thrughuthiscareer,DatDr.MhdIbrahimA.Wahidhascnductednumerusmedicalresearches.In2003,hewaspart
ateamwhichreceivedabrnzemedalIRPAresearchawardrhiswrkinUsingarticialnetwrkasaprgnsticindicatrrpredictingsurvivalinNaspharyngealcancer.
HeiscurrentlythepresidentMalaysianonclgyScietyaswellastheAsianPacicFederatinorganisatinrCancer
ResearchandCntrl(APFoCC)andisalstheVicePresidenttheSelangrAssciatinrtheMentallyHandicapped.
Muk Sai Tat,Malaysian,aged47Independent NonExecutive Director
Chartered Accountant (M) (1990)
Master o Business Administration, University o Bath, United Kingdom, (1996).
Mr.MukisanIndependentNn-ExecutiveDirectrtheCmpanyandwasappintedttheBardn26octber2009.He
istheChairmantheAuditCmmitteeandamemberbththeNminatinCmmitteeandRemueratinCmmittee
theCmpany.Mr.MukisagraduatetheMalaysianInstituteCertiedPublicAccuntants(MICPA)andamembertheMalaysiaInstituteAccuntants(MIA).
UpngraduatinrmVictriaInstitutin,KualaLumpurin1983,Mr.MukstartedhiscareerwithPriceWaterhuseasanAudit
Assistant.HewaslaterprmtedtthepsitinAuditSenirupnhissuccessulcmpletintheMalaysianInstitute
CertiedPublicAccuntants(MICPA)nalexaminatininJune1989andhewasadmittedttheMalaysiaInstitute
Accuntants(MIA)in1990.
In1996,hecmpletedhisExecutiveMasterBusinessAdministratinPrgrammeatertakinguppsitinsinogilvy&
Mather(Malaysia)SdnBhdandEvereadyBatteryCmpany(M)SdnBhd.HethenbecametheFinancialCntrller(Sutheast
Asia)EmersnElectric(M)SdnBhdrthree(3)yearsberebecmingtheChieFinancialocerPernasotisElevatr
C.SdnBhd&otisManuacturingCmpanySdnBhd,theGeneralManagerrSkylineCnceptsSdnBhdandGrupChie
ExecutiveocerCncinSdnBhdrm2001t2004.
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7InApril2004,Mr.MukwasappintedastheGrupChieExecutiveocer/ExecutiveDirectrMangiumIndustriesBhd.Duringhistenure,heversawtheGrupsbusinesses,whichincludesindustrialtimberplantatin,timberprcessingand
trading,printing,blendinganddistributinalchlicbeverages.Healsdevelpedandimplementedbusinessstrategies,
aswellasinitiatedacrpraterestructuringplanwiththeaimturningtheGruparund.
Inoctber2007,heletMangiumIndustriesBhdandiscurrentlyabusinesscnsultant.
Edward Khor Yew Heng,Malaysian,aged39Independent NonExecutive Director
Associate, Chartered Institute o Management Accountants, UK (CIMA)
Chartered Accountant (M) (2004)
Mr.KhrisanIndependentNn-ExecutiveDirectrtheCmpanyandwasappintedttheBardn26octber2009.He
istheChairmantheRemuneratinCmmitteeandamemberbththeAuditCmmitteeandNminatinCmmitteetheCmpany.Mr.KhrisacharteredmanagementaccuntantbytrainingandisanAssciatemembertheChartered
InstituteManagementAccuntants,UK(CIMA)since1996andaregisteredcharteredaccuntantwiththeMalaysian
InstituteAccuntants(MIA).
Hehasver13yearsexperienceinareascrprateaairs,crpratenance,strategyplanningandnancialmanagement
andhasspentmsthisyearsintheICTindustry.Hehasheldvariuspsitinsintheareascrprateplanning,crprate
nance,businessdevelpment,accuntingperatins,strategicmarketing,debtandcreditrecveryandlegalaairs.
Hestartedhiscareerasanauditrandmanagementcnsultantwithinternatinalpublicaccuntants,DelitteTuche
Thmatsu.Healsspentseven(7)yearswiththeTIMEEngineeringBerhadGrupwhichistheTechnlgy&Engineering
divisinRenngBerhadGrup(nwknwnasUEMWrldGrup).HeisalsanIndependentNn-ExecutiveDirectr
TFPSlutinsBerhad.
Nte:
1. NnetheDirectrshaveamilyrelatinshipwiththerDirectrsrmajrsharehldersexceptthellwing:-
(a) SeahLiangChiangisthespuseChuaYckPeng,
(b) SeahLiangChiangandChuaYckPengwharetheDirectrsandSharehldersDSCSystemsPte.Ltd.,a
substantialsharehldertheCmpany.
2. NnetheDirectrshaveanypersnalinterestinanybusinessarrangementinvlvingtheCmpanyandallthe
Directrshavehadncnvictinsrencestherthantracencesinthepasttenyears.
DIRECTORS' PROFILE
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CHAIRMAN'S STATEMENT
Dear Shareholders,
On behalf of the Board of Directors, I am pleased to present toyou the Annual Report and Financial Statements of DSC SolutionsBerhad (DSC) for the nancial year ended 30 September 2009(FYE 2009).
THE YEAR UNDER REVIEW
DSChasperrmedsatisactrilyinwhathasbeenadicultyearinviewthe
ngingnancialcrisis.FrtheFYE2009,DSC revenue grew46% tRM3.13
millinrmRM2.14millinrecrdedinthepreviusnancialyear.Inlinewith
theimprvementinrevenue,DSChasrecrdedaprtatertaxatinRM2.34millinrepresenting28%grwthcmparedtRM1.82millinintheprevius
nancialyear.
SIGNIFICANT EVENTS
9thDecember2009markedanimprtantdateinurmilestneasDSCwasciallylistedntheACEMarketBursa
MalaysiaSecuritiesBerhad.DSCissued12,578,000newrdinarysharesRM0.10each(DSCShares)atanissueprice
RM0.50perDSCsharepursuanttthepublicissueandbnusissuene(1)newDSCsharetbeissuedandcredited
asullypaid-upreveryne(1)DSCshareheldaterthepublicissue.Theprceedsrmthepublicissuewereentirely
accruedtthecmpanyandisintendedtundingtheR&Dexpenditure,businessexpansin&capitalexpenditureand
aswrkingcapital.
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CHAIRMAN'S STATEMENT
RESEARCH & DEVELOPMENT (R&D)
DSCcntinuestbelievethatR&Disanessentialcmpnentreverysuccessulstwarecmpanyindrivingbusiness
grwthandimprvingperatinaleciency.Hence,rtheFYE2009,DSChasincurredanexpenditureapprximately
RM1.02millintembarkndevelpmentsnewintegratedAutmatedIdenticatinandDataCllectin(AIDC)slutins
andtimprvenurexistingprductsinrespnsetchangesinuserrequirementsandtechnlgicaldevelpment.
FORWARD PROSPECTS AND STRATEGIES
LeadersbthMalaysiaandSingaprehavestatedthatbthecnmieshaveturnedarundacrnerandarentrackr
arecvery.DSCremainscautiuslyptimisticanditherecverycmesquickly,wearepisedttakeulladvantageit.
Duringtheslwdwn,insteadmerelylkingatwaystcutcst,wealscusednbuildingupurcrecmpetencies
-especiallyinthe area IT.Wealscusednincreasingurcrecmpetenciesin areassuchas technicalandsales
supprt.
Gingrward,wewillcntinuetmanageurcstdiligentlyandinvestintlsthatseektincreaseurveralleciency
andprductivity.Weplantdmrewithless.Thiscannlybedneiwecntinuetinvestintechnlgyandtraining.
Weaimtraisetheskillsandcreativeptentialeverysta.Thiscannlybeachievediinvestinurpeple,upanddwn
theskillsladder.
Hwever,wecannlymakeurnextleapinprductivityieveryindividualtakestheinitiativetdevelphisskillsand
expertise,andaccmplishmreinhisjbandcareer.Wewillhavetempwerurstastndnewwaystcreatevalue,
andhelpunlckeverywrkersptential.
Weseektinvestinexpandingtheimmediatereginalmarketsandcntinuetleveragenurlwerperatingcstin
IskandarMalaysia,whereurMSCceislcated.Finally,thecmpanywillleveragenurcrestrengthsbuiltverthe
yearstcarveanicheintheservicessectrsespeciallyattheupcmingintegratedresrtsinSingapre.
CORPORATE GOVERNANCE
TheBardisstrnglycmmittedtwardsensuringhighstandardscrprategvernancepracticesinurdaytday
peratinsand management theGrup,in cmpliance withtheBestPractices theMalaysian Cde Crprate
Gvernance.
TheBardisgearedtwardsensuringmaximumsharehldersvalueandensuringthelngtermgrwththeGrupin
linewiththeapplicatintheprinciplesthesaidcde.ThemeasuresimplementedarehighlightedintheCrprate
GvernanceStatementinthisAnnualReprt.
APPRECIATION
IwuldliketexpressmyutmstappreciatinttheBardmembers,keymanagementanduremplyeesrtheirstrng
cmmitmentandendlesscntributin.Iwuldalslikettakethispprtunitytthankuraithulcustmers,business
assciates,bankersandsharehldersrtheircntinuedsupprtthusar.
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STATEMENT OF CORPORATE GOVERNANCE
TheBardDirectrsisullyacknwledgestheimprtancegdcrprategvernanceandiscmmittedttheestablishmentandimplementatinaprperramewrkandcntrlsthatareinlinewiththeprinciplesandbestpractices
assetutintheMalaysianCdenCrprateGvernance(Revised2007)(theCde).
TheBardispleasedtreprtntheextenttwhichtheprinciplesandbestpracticestheCdewereappliedthrughut
thenancialyearended30September2009.
A. BOARD OF DIRECTORS
Board Composition and Balance
Composition
TheBardcurrentlycmprisesseven(7)members,ur(4)areExecutiveDirectrsandthree(3)areIndependentNn-
ExecutiveDirectrs.ThecurrentBardcmpsitincmplieswiththeListingRequirementstheBursaMalaysiaSecuritiesBerhadrtheACEMarket.Thewidespectrumknwledge,skillsandexperiencetheBardgivesaddedstrengtht
theleadershipwhichisnecessaryrtheeectivestewardshiptheCmpany.
Board Balance
TheBard haswithinit,pressinalsdrawnrm variusbackgrunds;bringing in-depthanddiversityin experience,
expertiseandperspectivesttheCmpanysbusinessperatin.TheBardiscmprisedindividualswharecmmittedt
businessintegrityandpressinalisminallitsactivities.TheBardsupprtsthehigheststandardscrprategvernance
andthedevelpmentbestpracticesrtheGrup.
TheprlesthememberstheBardaresetutnpages4and7thisAnnualReprt.
Board Roles and Responsibilities
NindividualrgrupindividualsdminatestheBardsdecisin-making.Tgether,theDirectrspssessthewide
rangebusiness,cmmercialandnancialknwledge,expertiseandskillsessentialinthemanagementanddirectin
acrpratinwithreginalpresence.
TheExecutiveDirectrhastherespnsibilitytmanagetheday-tdayperatinsthebusiness,implementatinBard
pliciesandmakingstrategicdecisinsrtheexpansinthebusiness.TheNn-ExecutiveDirectrscntributetheir
expertiseandexperiencestgiveindependentjudgmentttheBardnissuesstrategy,perrmanceandresurces,
includingmajrplicies,keydirectinsandstandardscnduct.Theindependentdirectrsprvideguidance,unbiased,
ullybalancedandindependentviews,adviceandjudgmenttmanyaspectstheCmpanysstrategysastsaeguardthe
interestsminritysharehldersandtensurethathigherstandardscnductandintegrityaremaintainedbytheGrup.
AllIndependentDirectrsulllthedenitinIndependentDirectrsasstipulatedundertheListingRequirements.
Board Meetings
TherewasnBardmeetingheldduringthenancialyearended30September2009astheCmpanywasnlylistedn
theACEMarketBursaMalaysiaSecuritiesBerhadn9December2009.
Access to Inormation
TheagendatgetherwithrelevantBardPapersandreprtsarecirculatedtallDirectrsprirttheBardmeetings.These
PapersareissuedinsucienttimetenabletheDirectrstbtainurtherclaricatinandexplanatin,wherenecessary,
inrdertbeprperlybrieedberethemeeting.
Directrs,whetherasaullbardrintheirindividualcapacities,haveullandtimelyaccesstallrelevantinrmatinn
theGrupsbusinessesandaairstdischargetheirdutieseectively.Directrsalshavedirectaccessttheadviceand
servicestheCmpanySecretariesandtbtainindependentpressinaladvice,whenevernecessary,attheexpensethecmpany.
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Directors Training
Therehasbeengreaterawarenesstheimprtanceandbenetsattendingandparticipatinginthetrainingand
cntinuingtrainingprgrammethatwillenhancetheDirectrsknwledgeandskillsasteectivelydischargetheir
dutiesasDirectrs.
Tw(2)DirectrshavecmpletedtheMandatryAccreditatinPrgramme(MAP)asrequiredbyBursaSecurities.The
therFive(5)haveregisteredrtheMAPscheduledinMarch2010.
TheDirectrswillcntinuetattendrelevanttrainingprgrammestkeepabreastwithdevelpmentswithcntinuus
basisincmpliancethetheACEMarketListingRequirementsBursaSecurities.
Board Committees
TheBardhasdelegatedcertainrespnsibilitiesttheBardCmmittees,whichperatewithinclearlydenedtermsreerence.TheBardCmmitteesare:
a Audit Committee
Thecmpsitin,respnsibilitiesanddetailedtermsreerencearesetutseparatelyintheauditcmmitteereprt
npages14t16theannualreprt.
b Nomination Committee
TherletheNminatinCmmitteeistreviewannuallytherequiredmixskills,experienceandtherqualities
theDirectrsandtrecmmendnewappintment,iany,ttheBard.
ThememberstheNminatinCmmitteeareasllws:(i) DatDr.MhamedIbrahimbinAWahid(Chairman, Independent Non-Executive Chairman)
(ii) Mr.MukSaiTat(Member, Independent Non-Executive Director)
(iii) Mr.EdwardKhrYewHeng(Member, Independent Non-Executive Director)
c Remuneration Committee
TheRemuneratinCmmitteeisrespnsiblerthermulatinremuneratinplicysuchasrewardsandbenets
andthertermsemplymenttheExecutiveDirectr.
ThememberstheRemuneratinCmmitteeareasllws:
(i) Mr.EdwardKhrYewHeng(Chairman, Independent Non-Executive Director)
(ii) DatDr.MhamedIbrahimbinAWahid(Member, Independent Non-Executive Chairman)
(iii) Mr.MukSaiTat(Member, Independent Non-Executive Director)
Appointment and Reelection o Board Members
TheBardthrughtheNminatinCmmitteecntinuuslyreviewsitssizeandcmpsitinwithparticularcnsideratin
nitsimpactntheeectiveunctiningtheBard.BasedntheappraisaltheCmmittee,theBardbelievesthat
thecurrentcmpsitintheBardprvidestherequiredmixskillsandcrecmpetenciesrequiredrtheBardt
dischargeitsdutieseectively.
InaccrdancewiththeCmpanysArticlesAssciatin,allDirectrswhareappintedbytheBardaresubjecttelectin
bythesharehldersattheAnnualGeneralMeeting(AGM)llwingtheirappintment.TheArticlesAssciatinthe
Cmpanyalsprvidesthatne-third(1/3)thedirectrsshallretirebyrtatinrmceateachAGMandtheyshall
beeligiblerre-electinatsuchAGM.Inadditin,alldirectrsshallbesubjectedtretirementbyrtatinnceevery
three(3)years.
STATEMENT OF CORPORATE GOVERNANCE
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B. DIRECTORS REMUNERATION
ThedirectrsremuneratinisdeterminedinaccrdancettheperrmanceandtheircapabilityttheCmpany.TheBard
recgnizesthatlevelsremuneratinmustbesucienttattract,retainandmtivatethedirectrsthequalityrequired
tmanagethebusinesstheCmpanyandtaligntheinteresttheDirectrswiththsethesharehlders.
DetailstheDirectrsremuneratinwhservedduringthenancialyearended30September2009aresetutbelw:
a Aggregate Remuneration by Category
Benetin
Fees Salaries Bonuses kind
RM RM RM RM
ExecutiveDirectrs 114,000 150,000
Nn-ExecutiveDirectrs
Total 114,000 150,000
b The number o Directors o the Company whose total remuneration alls within the ollowing bands:
Number o Directors
Range o remuneration Executive Directors NonExecutive Directors
RM250,001tRM300,000 1
C. INVESTORS RELATIONS AND SHAREHOLDERS COMMUNICATION
Dialogue between companies and Investors
ThecmpanyrecgnizestheimprtancekeepingthesharehldersandinvestrsinrmedtheCmpanysbusinessand
crpratedevelpments.Suchinrmatinisdisseminatedviathegrupsannualreprts,circularstsharehlders,quarterly
nancialresultsandthevariusannuncementsmadermtimettime.Allsharehlders,includingprivateinvestrs,havean
pprtunitytparticipateindiscussinswiththeBardnmattersrelatingtthegrupsperatinandperrmanceatthe
cmpanysannualgeneralmeeting.Alternatively,theymaybtainthecmpanyslatestannuncementsviathecmpanys
websiteatwww.dsc.cm.myrviatheBursaMalaysiaSecuritiesBerhadswebsiteatwww.bursamalaysia.cm.
Annual General Meeting
TheprinciplerumrdialguewithsharehldersisduringtheAnnualGeneralMeeting(AGM).AttheAGM,theBard
prvidespprtunitiesrsharehlderstraisequestinspertainingtissuesintheAnnualReprt,AuditedFinancial
Statements,crpratedevelpmentsintheGrup,thereslutinsbeingprpsedandnthebusinesstheGrupin
general.
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D. ACCOUNTABILITY AND AUDIT
Financial Reporting
TheBardaimstpresentabalancedandmeaningulassessmenttheCmpanysnancialperrmanceandprspects
thrughtheannualauditednancialstatementsandquarterlynancialreprtstitsstakehlders,inparticular,sharehlders,
investrsandtheregulatryauthrities.
Inpreparingthenancialstatements,theDirectrsarerequiredtselectapprpriateaccuntingplicies,cnsistently
appliedandsupprtedbyreasnableandprudentjudgmentsandestimates.TheDirectrshaverespnsibilityrensuring
thattheCmpanykeepsprperaccuntingrecrdswhichdisclsewithaccuracyatanytimethenancialpsitinthe
CmpanywhichenablesthemtensurethatthenancialstatementscmplywiththeCmpaniesAct,1965.TheDirectrs
alshaverespnsibilityrtakingsuchstepsasarereasnabletsaeguardtheassetstheGruprpreventinand
detectinraudandtherirregularities.
TheStatementDirectrsRespnsibilityrpreparingAnnualAuditedFinancialStatementspursuanttParagraph15.26(a)
theListingRequirementsBursaSecuritiesissetutnpage18thisAnnualReprt.
Internal Control
TheBardacknwledgestheirrespnsibilityinmaintaininganinternalcntrlsystemthatprvidesreasnableassurance
eectiveand ecientperatins,and cmpliancewithlaws andregulatinsas well asinternal prceduresand
guidelines.
Itisrecgnizedthatcertainrisksandthreatsareexternallydriven,unreseenandbeyndtheCmpanyscntrl,thesystem
cannlyprvidereasnableassuranceagainstmisstatementrlss.
TheStatementnInternalCntrlsetutnpage17thisAnnualReprtprvidesanverviewthestateinternalcntrlswithintheGrup.
Relationship with Auditors
TherletheAuditCmmitteeinrelatinttheexternalauditrsisdisclsedintheAuditCmmitteeReprtsetutn
pages14t16thisAnnualReprt.TheCmpanysindependentexternalauditrsllanessentialrlerthesharehlders
byenhancingthereliabilitytheCmpanysnancialstatementsandgivingassurancethatreliabilitytusersthese
nancialstatements.TheexternalauditrshaveanbligatintbringanysignicantdeectsintheCmpanyssystem
cntrlandcmpliancettheattentinthemanagement;andinecessary,ttheauditcmmitteeandtheBard.
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TheprinciplebjectivesAuditCmmitteeistassisttheBardindischargingitsstatutrydutiesandrespnsibilitiesinrelatintcrprategvernance,internalcntrlsystems,managementandnancialreprtingpracticestheCmpanyandtensureprperdisclsuretthesharehlderstheCmpany.
MEMBERS
ThecurrentmemberstheAuditCmmitteeareasllws:
Mr. Muk Sai Tat
(Chairman, Independent Non-Executive Director)
Dato Dr. Mohamed Ibrahim bin A Wahid
(Member, Independent Non-Executive Chairman)
Mr. Edward Khor Yew Heng(Member, Independent Non-Executive Director)
MEETINGS AND ATTENDANCE
Therewasnmeetingheldduringthenancialyearended30September2009astheCmpanywasnlylistedntheACEmarketBursaMalaysiaSecuritiesBerhadn9December2009.
TERMS OF REFERENCE
Thellwingisthetermsreerencetheauditcmmittee:-
Membership
1. TheCmmitteeshallbeappintedbytheBardrmamngitsmembersandshallcmprisentlessthanthree(3)members,wherebyallmembersmustbenn-executivedirectrsandnanciallyliteratewithamajritythembeingIndependentDirectrs,andatleastne(1)membertheCmmittee:-
a) mustbeamembertheMalaysianInstituteAccuntants;r
b) iheisntamembertheMalaysianInstituteAccuntants,hemusthaveatleastthree(3)yearswrkingexperienceand:-
i. hemusthavepassedtheexaminatinsspeciedinPartIthe1stScheduletheAccuntantsAct1967;r
ii. hemustbeamembernetheassciatinsaccuntantsspeciedinPartIIthe1stScheduletheAccuntantsAct1967;r
c) ullssuchtherrequirementsasprescribedrapprvedbytheBursaMalaysiaSecuritiesBerhad.
2. AlternateDirectrshallntbeappintedasamembertheCmmittee.
3. TheCmmitteeshallelectaChairmanrmamngitsmembersandtheelectedChairmanshallbeanIndependentDirectr.
4. Intheevent,theelectedChairmanisntabletattendameeting,theremainingmemberspresentshallelectnethemselvesasChairmanrthemeeting.TheelectedChairmanshallbeanIndependentDirectr.
5. IamembertheAuditCmmitteeresigns,retires,diesrranytherreasnceasestbeamemberwhichresultinginthenn-cmpliancewithpint1abve,theBardshallllthevacancywithinthree(3)mnths.
6. TheBardshallreviewthetermceandperrmancetheCmmitteeandeachmemberatleastnceeverythree(3)years.
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Frequency o meetings
1. Meetingsshallbeheldntlessthanur(4)timesayear.Hwever,additinalmeetingsmaybecalledatanytime
dependingnthescpeactivitiestheCmmittee.IntheeventissuesrequiringtheCmmitteesdecisin
arisebetweenmeetings,suchissuesshallbereslvedthrughcircularreslutinstheCmmittee.Suchcircular
reslutininwritingshallbevalidandeectualiitissignedrapprvedbyletter,acsimileranyelectrnicmeans
byallmemberstheCmmittee.
2. otherBardmembers,Senirmanagement,InternalandExternalauditrsmaybeinvitedtattendmeetings.
3. TheCmmitteeshuldmeetwiththeexternalauditrswithutthepresenceexecutivebardmembersatleast
twiceinanancialyear.
4. Prirnticeshallbegivenrallmeetings.
Quorum
Theminimumqurumrthemeetingistw(2)members theCmmittee,amajritymemberspresentmustbe
independentandNn-ExecutiveDirectrs.
Secretary
TheCmpanySecretaryshallbethesecretarytheCmmittee.TheSecretaryshallcirculatethenticeandminutesthe
CmmitteetallmembersBard.
Functions
TheunctinstheCmmitteeareasllws:-
i) Tcnsidertheappintmentexternalauditrs,theauditeeandanyquestinsresignatinrdismissal.
ii) Treviewwiththeexternalauditrs:
a) theauditplan,scpeandnaturetheaudittheCmpanyanditssubsidiaries(Grup);
b) theirevaluatinandndingsthesysteminternalcntrls;andtheauditreprtsnthenancial
statements.
iii) Treviewtheadequacythescpe,unctin,cmpetencyandresurcesinternalauditandtensurethatithas
thenecessaryauthritytcarryitswrk.
iv) Treviewanyappraisalrassessmenttheperrmancetheinternalauditunctinsandtheinternalauditunctin
shuldreprtsdirectlyttheCmmittee.
v) Treviewthequality,adequacyandeectivenesstheGrupsinternalcntrlenvirnment.
vi) Treviewthendingstheinternalandexternalauditrs.
vii) TreviewthequarterlyandyearendnancialstatementstheGrup,cusingparticularlynanychangesinr
implementatinmajraccuntingpliciesandpractices,signicantadjustmentsarisingrmtheaudit,theging
cncernassumptinandcmpliancewithapplicableapprvedaccuntingstandardsandtherlegalandregulatry
requirements.
viii) TreviewanyrelatedpartytransactinsandcnfictsinterestsituatinthatmayarisewithintheGrupincluding
anytransactins,prceduresrcursecnductthatraisesquestinsmanagementintegrity.
ix) Treviewtheexternalauditrsmanagementletterandmanagementsrespnse.
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x) TreviewandveriytheallcatinptinspursuantttheEmplyeesShareoptinScheme(ESoS)incmpliancewiththecriteriaasstipulatedintheby-lawESoStheGrup,iany.
xi) AnytherunctinthatmaybemutuallyagreedupnbytheCmmitteeandtheBardwhichwuldbebenecial
ttheCmpanyandensuretheeectivedischargetheCmmitteesdutiesandrespnsibilities.
Authority
TheCmmitteeisauthrisedbytheBardtinvestigateanyactivitywithinitstermreerenceatthecsttheCmpany,
t:-
i) secureullandunrestrictedaccesstanyinrmatinpertainingttheCmpanyanditssubsidiaries(theGrup).
ii) cmmunicatedirectlywiththeexternalandinternalauditrsandallemplyeestheGrup.
iii) seekandbtainindependentpressinaladviceandtsecuretheattendanceutsiderswithrelevantexperience
andexpertiseasitcnsidersnecessary.
iv) cnvenemeetingswiththeexternalandinternalauditrsrbthexcludingtheattendancetherdirectrsand
emplyeesthecmpany,wheneverdeemednecessary.
SUMMARY OF ACTIVITIES DURING THE FINANCIAL YEAR
Therewasnactivitiescarriedutduringthenancialyearended30September2009astheCmmitteewasnlyrmed
n26octber2009.
INTERNAL CONTROL REVIEW AND INTERNAL AUDIT FUNCTION
TheGruphadappintedanindependentinternalcntrlcnsultantstcarryutareviewthesysteminternalcntrl
andriskassessmenttheGrupinrelatinttheListingtheCmpanyntheACEMarketBursaSecurities.Theinternal
cntrlreviewhasbeenundertakentensurethattheGrup,inallmaterialsrespectshasestablishedprcedures,systems
andcntrlswhichareadequatehavingregardtthebligatinstheGrupanditsdirectrstcmplywithrelevant
legalandregulatryrequirementsandwhicharesucienttenabletheGrupsdirectrstmakeaprperassessment
thenancialpsitinandprspectstheGrup,bthbereandaterlisting.
TheGruphasrecentlyengagedapressinalrmtprvideutsurcedinternalauditservicesrtheGrup.
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INTRODUCTION
Pursuanttparagraph15.26(b)BursaMalaysiaSecuritiesBerhad(BursaSecurities)ACEMarketListingRequirements,theBardDirectrs(theBard)DSCSlutinsBerhad(theCmpany)ispleasedtprvidethellwingstatementn
thestateinternalcntrltheCmpany,whichhasbeenpreparedinaccrdancewiththeStatementInternalCntrl:
GuidancerDirectrsPublicListedCmpaniesissuedbytheInstituteInternalAuditrsMalaysiaandasadptedby
BursaSecurities.
BOARD RESPONSIBILITY
TheBardisrespnsiblermaintainingasundsysteminternalcntrltsaeguardsharehldersinvestmentsandthe
Cmpanysassets,andrreviewingtheadequacyandintegritythesystem.Thesysteminternalcntrlcversnt
nlynancialcntrlsbutperatinalandcmpliancecntrlsandriskmanagement.
Thesysteminternalcntrlisdesignedtmanageratherthaneliminatetheriskailuretachievebusinessbjectives,
andinherentlyitcannlyprvidereasnableandntabsluteassuranceagainstmaterialmisstatementrlss.
TheBardcnrmsthatthereisaninrmaln-gingprcessridentiying,evaluatingandmanagingthesignicantrisks
acedbytheCmpanyrthenancialyearunderreviewanduptdateapprvaltheannualreprtandnancialstatements.
OTHER KEY AREAS OF INTERNAL CONTROL
1. TheGruphas inplace anrganizatinalstructurethatsupprtsbusinessandperatinalrequirements,withclearlydenedlevelsrespnsibilities,linesaccuntabilityanddelegatedauthritywithapprpriatereprting
prcedures.
2. DcumentedguidelinesnperatingprcedureshavebeenadptedbytheCmpany,ensuresclearaccuntability
andcntrlprceduresareinplacerallperatingunits.3. TheExecutiveDirectrsareinvlvedintheday-t-daybusinessperatinstheGrup.Scheduledinrmalperatinal
andmanagementmeetingsareheldwithsenirmanagementtidentiy,discussandreslvebusinessandperatinalissues.SignicantmattersidentiedduringthesemeetingsarehighlightedttheBard.
Theimprvementthesysteminternalcntrlsisann-gingprcessandtheBardmaintainsn-gingcmmitment
tstrengthentheCmpanyscntrlenvirnmentandprcesses.
RISK MANAGEMENT
TheBardrecgnizesthatidenticatin,evaluatinandmanagementsignicantrisksacedbytheCmpanyarean
ngingprcess.
TheBardreviewsinternalcntrlissuesidentiedbythemanagementandevaluatestheadequacyandeectivenesstheCmpanysriskmanagementandinternalcntrlsystem.
INTERNAL AUDIT
TheCmpanyadptsarisk-basedapprachttheimplementatinandmnitringrelevantinternalcntrls.The
ExecutiveDirectrscnductbriengandinterviewnriskassessmenttidentiysignicantcncernsandrisksperceived
bytheSenirManagement.
CONCLUSION
Duringthenancialyearunderreview,the Bardis ntaware anyissueswhichwuldresultin anymateriallsses,
decienciesrerrrsarisingrmanyinadequacyrailuretheCmpanyssysteminternalcntrlthatwuldrequire
disclsureintheCmpanysAnnualReprt.Themanagementwillcntinuettakemeasureststrengthenthecntrlenvirnment.
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STATEMENT OF DIRECTORS RESPONSIBILITY
TheDirectrsarerequiredbytheCmpaniesAct,1965(Act)tpreparenancialstatementsreachnancialyear,whichgiveatrueandairviewthestateaairstheGrupandtheCmpanyattheendthenancialyearandthe
resultsandcashfwstheGrupandtheCmpanyrthenancialyearthenended.
TheDirectrscnsider that,in preparingthenancialstatementsrthenancialyearended30 September2009,the
Cmpanyhasusedapprpriateaccuntingpliciesandappliedthemcnsistentlyandmadejudgementsandestimates
thatarereasnableandprudent.TheDirectrsalscnsiderthatallapplicableapprvedaccuntingstandardshavebeen
llwedandcnrmthatthenancialstatementshavebeenpreparednagingcncernbasis.
TheDirectrsarerespnsiblerensuringthattheGrupandtheCmpanykeepaccuntingrecrdswhichdisclsewith
reasnableaccuracyatanytimethenancialpsitintheGrupandtheCmpanyandwhichenablethemtensure
thatthenancialstatementscmplywiththeActandMASBApprvedAccuntingStandardsinMalaysiarEntitiesother
ThanPrivateEntities.
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1. UTILISATION OF PROCEEDS TheGrupraisedRM6.289millinrmitsInitialPublicoeringntheACEMarketBursaMalaysiaSecuritiesBerhad
n9December2009.Thestatustheutilisatintheprceedsraisedasat31December2009isasllws:
Proposed Amount AmountAmount Utilised Unutilised
Purpose RM'000 RM'000 RM'000
WrkingCapital 1,389 500 889BusinessExpansin 1,400 1,400R&DExpenditure 1,800 638 1,162ListingExpenses 1,700 1,572 128*
6,289 2,710 3,579
* Inviewtheactuallistingexpenseswerelwerthanestimated,theexcesswillbeutilisedrwrkingcapital
purpses
2. SHARE BUY-BACKS
Therewerensharebuy-backarrangementsduringthenancialyear.
3. OPTIONS, WARRANTS OR CONVERTIBLE SECURITIES
Therewerenptins,warrantsrcnvertiblesecuritiesexercisedinrespectthenancialyear.
4. DEPOSITORY RECEIPT (DR)
ThecmpanydidntspnsranyDRprgrammesduringthenancialyear.
5. IMPOSITION OF SANCTIONS / PENALTIES
Therewerenpublicimpsitinssanctinsrpenaltiesimpsednthecmpanyanditssubsidiaries,directrsrmanagementbytheregulatrybdiesduringthenancialyear.
6. NON-AUDIT FEES
Therewasnnn-auditeespaidttheexternalauditrsbythegruprthenancialyearended30September2009.
7. VARIATION IN RESULTS
Therewerenmaterialvarianceintheauditedresultsrmtheunauditedresultsannuncedrthenancialyearunderreview.
8. PROFIT GUARANTEE
Thecmpanydidntgiveanyrmprtguaranteetanypartiesduringthenancialyear.
9. MATERIAL CONTRACTS
TherewerenandmaterialcntractsenteredbythecmpanyanditssubsidiariesinvlvingDirectrsandsubstantialsharehldersinterestduringthenancialyear.
10. REVALUATION POLICY ON LANDED PROPERTY
TheGrupdesnthavearevaluatinplicyinrespecttheGrupsprperties.
11. RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE AND TRADING NATURE
Therewerenrecurrentrelatedpartytransactinsenteredintinthenancialyear.
12. CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES AND PRACTICES
TheBardrecgnizestheimprtancebeingarespnsiblecrpratecitizentenhanceandpsitivelycntribute
tsciety.AlthughnCSRactivitieshavebeencarriedutduringthenancialyear,theGrupwillbelkingatimplementingthebestpracticesCSRin areas envirnment,cmmunity,wrkplace andmarketplacein thecmingyears.
ADDITIONAL COMPLIANCE INFORMATION
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statements21 DirectrsReprt
24 StatementbyDirectrsandStatutryDeclaratin
25 IndependentAuditrsReprt
26 BalanceSheet
27 IncmeStatement
28 StatementChangesinEquity
29 CashFlwStatement
30 NtesttheFinancialStatements
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TheDirectrshavepleasureinsubmittingtheirreprttgetherwiththeauditednancialstatementstheCmpanyrthenancialyearended30September2009.
PRINCIPAL ACTIVITY
TheCmpanyisprincipallyengagedindevelpmentandprvisinstwareandengineeringcnsultancyrAutmated
IdenticatinandDataCllectin(AIDC)andinvestmenthldingcmpany.
Therehavebeennsignicantchangesinthenaturetheseactivitiesduringthenancialyear.
FINANCIAL RESULTS
RM
Prtrthenancialyear 2,339,941
DIVIDENDS
TherewerendividendspaidrdeclaredbytheCmpanysincetheendthepreviusnancialyear.
RESERVES AND PROVISIONS
Therewerenmaterialtranserstrrmreservesrprvisinsduringthenancialyear.
ISSUE OF SHARES AND DEBENTURES
Therewerensharesrdebenturesissuedduringthenancialyear.
Subsequenttthebalancesheetdate,theCmpanyincreaseditsissuedandullypaidupsharecapitalrmRM2cmprising
20rdinarysharesRM0.10eachtRM10,400,000cmprising104,000,000rdinarysharesRM0.10eachasdisclsed
inNte19ttheFinancialStatements.
INFORMATION ON THE FINANCIAL STATEMENTS
BerethenancialstatementstheCmpanyweremadeut,theDirectrstkreasnablesteps:-
(a) tascertainthatactinhadbeentakeninrelatintthewritingbaddebtsandthemakingallwancer
dubtuldebtsandsatisedthemselvesthattherewerenbaddebtstbewrittenandnallwancerdubtul
debtswasrequired;and
(b) tensurethatanycurrentassetswhichwereunlikelytberealisedintherdinarycursebusinessincludingtheir
valueasshwnintheaccuntingrecrdstheCmpanyhavebeenwrittendwntanamuntwhichtheymight
beexpectedstrealise.
Atthedatethisreprt,theDirectrsarentawareanycircumstances:-
(a) whichwuldrenderitnecessarytwriteanybaddebtsrtmakeanyallwancerdubtuldebtsinthenancial
statementstheCmpany;r
(b) whichwuldrenderthevaluesattributedtcurrentassetsinthenancialstatementstheCmpanymisleading;
r
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(c) whichhavearisenwhichrenderadherencettheexistingmethdvaluatinassetsrliabilitiestheCmpanymisleadingrinapprpriate.
Ncntingentrtherliabilityhasbecmeenrceablerislikelytbecmeenrceablewithintheperidtwelve
mnthsatertheendthenancialyearwhich,inthepinintheDirectrs,willrmayaecttheabilitytheCmpany
tmeetitsbligatinsasandwhentheyalldue.
Atthedatethisreprt,theredesntexist:-
(a) anychargentheassetstheCmpanywhichhasarisensincetheendthenancialyearwhichsecurestheliability
anytherpersn;r
(b) anycntingentliabilitytheCmpanywhichhasarisensincetheendthenancialyear.
OTHER STATUTORY INFORMATION
TheDirectrsstatethat:-
Atthedatethisreprt,theyarentawareanycircumstancesnttherwisedealtwithinthisreprtrthenancial
statementswhichwuldrenderanyamuntstatedinthenancialstatementsmisleading.
InthepinintheDirectrs:-
(a) theresultsperatins theCmpanyduringthenancialyearwerentsubstantiallyaectedbyanyitem,
transactinreventamaterialandunusualnature;and
(b) therehasntarisenintheintervalbetweentheendthenancialyearandthedatethisreprtanyitem,transactinreventamaterialandunusualnaturelikelytaectsubstantiallytheresultsperatinstheCmpanyr
thecurrentnancialyearinwhichthisreprtismade.
DIRECTORS
TheDirectrsincesincethedatethelastreprtareasllws:-
SeahLiangChiang (Managing Director)
ChuaYckPeng(Executive Director)
WngEeSing(Executive Director)
DatDr.MhamedIbrahimBinAWahid (Independent Non-Executive Chairman) (appointed on 26.10.2009)
LengSingWeng(Executive Director) (appointed on 26.10.2009)
MukSaiTat(Independent Non-Executive Director) (appointed on 26.10.2009)
EdwardKhrYewHeng(Independent Non-Executive Director) (appointed on 26.10.2009)
AccrdingttheRegisterDirectrssharehldings,thebenecialinterestthsewhwereDirectrsattheendthe
nancialyearinthesharestheCmpanyasllws:-
Ordinary shares o RM1 each
At At
1.10.2008 Bought Sold 30.9.2009
SeahLiangChiang 1 1
NtherDirectrsattheendthenancialyearheldanyinterestinsharestheCmpanyanditsrelatedcrpratin
duringthenancialyear.
DIRECTORS REPORT
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SIGNIFICANT EVENTS
ThesignicanteventsduringthenancialyearandsubsequenttthebalancesheetdatearedisclsedinNte19tthe
FinancialStatements.
DIRECTORS BENEFITS
Duringandattheendthenancialyear,narrangementssubsistedtwhichtheCmpanyisaparty,withthebjectr
bjectsenablingDirectrstheCmpanytacquirebenetsbymeanstheacquisitinsharesintheCmpanyr
anytherbdycrprate.
Sincetheendthepreviusnancialyear,nDirectrshasreceivedrbecmeentitledtreceiveanybenetbyreasn
acntractmadebytheCmpanyrarelatedcrpratinwiththeDirectrrwitharmwhichheisamember,r
withacmpanyinwhichhehasasubstantialnancialinterest.
AUDITORS
MessrsSJGrantThrntnhaveexpressedtheirwillingnesstcntinueince.
onbehaltheBard
........................................................................................... )
SEAHLIANGCHIANG )
)
)
)
)
) DIRECToRS
)
)
)
)
........................................................................................... )
CHUAYoCKPENG )
KualaLumpur
20January2010
DIRECTORS REPORT
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InthepinintheDirectrs,thenancialstatementssetutnpages26t46aredrawnupinaccrdancewithFinancialReprtingStandardsandtheCmpaniesAct,1965inMalaysiasastgiveatrueandairviewthenancialpsitin
theCmpanyasat30September2009anditsnancialperrmanceandcashfwstheCmpanyrthenancialyear
thenended.
onbehaltheBard
............................................................................................... ...........................................................................................
SEAHLIANGCHIANG CHUAYoCKPENG
KualaLumpur20January2010
STATUTORY DECLARATION
I,SeahLiangChiang,beingtheDirectrprimarilyrespnsiblerthenancialmanagementDSCSlutinsBerhad,d
slemnlyandsincerelydeclarethattthebestmyknwledgeandbelie,thenancialstatementssetutnpages26
t46arecrrectandImakethisslemndeclaratincnscientiuslybelievingthesametbetrueandbyvirtuethe
prvisinstheStatutryDeclaratinsAct,1960.
Subscribedandslemnlydeclaredby )
theabvenamedatKualaLumpurin )
theFederalTerritrythisday )
20January2010 ) ........................................................................
SEAHLIANGCHIANG
Bereme:
Cmmissinerroaths
STATEMENT BY DIRECTORS
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REPORT ON THE FINANCIAL STATEMENTS
WehaveauditedthenancialstatementsDSCSlutinsBerhad,whichcmprisethebalancesheettheCmpanyasat30September2009,andtheincmestatement,statementchangesinequityandcashfwstatementtheCmpanyrthenancialyearthenended,andasummarysignicantaccuntingpliciesandtherexplanatryntes,assetutnpages26t46.
Directors Responsibilities or the Financial Statements
ThedirectrstheCmpanyarerespnsiblerthepreparatinandairpresentatinthesenancialstatementsinaccrdance withFinancialReprting Standardsandthe CmpaniesAct,1965in Malaysia.Thisrespnsibilityincludes:designing,implementingandmaintaininginternalcntrlrelevanttthepreparatinandairpresentatinnancialstatementsthatarereermmaterialmisstatement,whetherduetraudrerrr;selectingandapplyingapprpriateaccuntingplicies;andmakingaccuntingestimatesthatarereasnableinthecircumstances.
Auditors Responsibilities
ourrespnsibilityis texpressan pininn these nancialstatementsbasednur audit.Wecnductedurauditinaccrdancewithapprvedstandardsnauditingin Malaysia.Thsestandardsrequire thatwecmplywithethicalrequirementsandplanandperrmtheaudittbtainreasnableassurancewhetherthenancialstatementsarereermmaterialmisstatement.
Anauditinvlvesperrmingprcedurest btainauditevidenceabuttheamuntsanddisclsuresinthe nancial
statements.Theprceduresselecteddependnurjudgement,includingtheassessmentrisksmaterialmisstatementthenancialstatements,whetherduetraudrerrr.Inmakingthseriskassessments,wecnsiderinternalcntrlrelevantttheCmpanyspreparatinandairpresentatinthenancialstatementsinrdertdesignauditprceduresthatareapprpriateinthecircumstances,butntrthepurpseexpressinganpininntheeectivenesstheCmpanysinternalcntrl.Anauditalsincludesevaluatingtheapprpriatenessaccuntingpliciesusedandthereasnableness
accuntingestimatesmadebythedirectrs,aswellasevaluatingtheverallpresentatinthenancialstatements.
Webelievethattheauditevidencewehavebtainedissucientandapprpriatetprvideabasisrurauditpinin.
Opinion
Inurpinin,thenancialstatementshavebeenprperlydrawnupinaccrdancewithFinancialReprtingStandardsandtheCmpaniesAct,1965inMalaysiasastgiveatrueandairviewthepsitintheCmpanyas30September2009anditsnancialperrmanceandcashfwsrthenancialyearthenended.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
InaccrdancewiththerequirementstheCmpaniesAct,1965inMalaysia,wealsreprtthatinurpinin,the
accuntingandtherrecrdsandtheregistersrequiredbytheActtbekeptbytheCmpanyhavebeenprperlykeptinaccrdancewiththeprvisinstheAct.
OTHER MATTERS
ThisreprtismadeslelytthememberstheCmpany,asabdy,inaccrdancewithSectin174theCmpaniesAct,1965inMalaysiaandrntherpurpse.Wedntassumerespnsibilitytanytherpersnrthecntentthisreprt.
SJ GRANT THORNTON DATO N. K. JASANI
(No.AF:0737) CHARTEREDACCoUNTANTCHARTEREDACCoUNTANTS (No:708/03/10(J/PH))
KualaLumpur 20January2010
INDEPENDENT AUDITORS REPORT TO THE MEMBERS OFDSC SOLUTIONS BERHAD
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Note 2009 2008RM RM
SHARECAPITAL 6 2 2
UNAPPRoPRIATEDPRoFIT 5,250,924 2,910,983
Ttalsharehlders'equity 5,250,926 2,910,985
Representedby:-
NoN-CURRENTASSET
Develpmentcsts 7 784,653 359,325
CURRENTASSETS
Tradereceivables 8 3,950,498 2,254,163
otherreceivables 9 760,994 324,879
Cashandbankbalances 13,366 3,438
Ttalcurrentassets 4,724,858 2,582,480
LESS:CURRENTLIABILITIES
Tradepayables 10 10,150
otherpayables 11 258,585 20,670
Ttalcurrentliabilities 258,585 30,820
NETCURRENTASSETS 4,466,273 2,551,660
5,250,926 2,910,985
Theaccmpanyingntesrmanintegralpartthenancialstatements.
BALANCE SHEETASAT30SEPTEMBER2009
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Note 2009 2008RM RM
Revenue 12 3,129,404 2,136,430
Cstsales (591,988) (285,990)
Grssprt 2,537,416 1,850,440
Administratinexpenses (190,666) (26,014)
otherexpenses (6,809) (465)
Prtberetaxatin 13 2,339,941 1,823,961
Taxatin 14
Prtrthenancialyear 2,339,941 1,823,961
Attributablet:-
EquityhlderstheCmpany 2,339,941
Earningspershareattributabletequityhlders
theCmpany
-Basic(RM) 15 1,169,970.50
Theaccmpanyingntesrmanintegralpartthenancialstatements.
INCOME STATEMENTFoRTHEFINANCIALYEARENDED30SEPTEMBER2009
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Share Unappropriatedcapital prot Total
RM RM RM
Balanceat1octber2007 2 1,087,022 1,087,024
Prtrthenancialyear 1,823,961 1,823,961
Balanceat30September2008 2 2,910,983 2,910,985
Prtrthenancialyear 2,339,941 2,339,941
Balanceat30September2009 2 5,250,924 5,250,926
Theaccmpanyingntesrmanintegralpartthenancialstatements.
STATEMENT OF CHANGES IN EQUITYFoRTHEFINANCIALYEARENDED30SEPTEMBER2009
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2009 2008RM RM
CASH FLOWS FROM OPERATING ACTIVITIES
Prtberetaxatin 2,339,941 1,823,961
Adjustment or:
Amrtisatindevelpmentcsts 591,988 285,990
operatingprtberewrkingcapitalchanges 2,931,929 2,109,951
Changesinwrkingcapital:-
Receivables (2,132,450) (1,226,873)
Payables 227,765 (545,516)
Cashgeneratedrmperatins/Netcashrm
peratingactivities 1,027,244 337,562
CASH FLOWS FROM INVESTING ACTIVITY
Paymentrdevelpmentcsts (1,017,316) (379,126)
Netcashusedininvestingactivity (1,017,316) (379,126)
CASH AND CASH EQUIVALENTS
Netincrease/(decrease) 9,928 (41,564) Brughtrward 3,438 45,002
Carriedrward 13,366 3,438
Theaccmpanyingntesrmanintegralpartthenancialstatements.
CASH FLOW STATEMENTFoRTHEFINANCIALYEARENDED30SEPTEMBER2009
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1. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
ThenancialstatementstheCmpanyhavebeenpreparedinaccrdancewiththeCmpaniesAct,1965inMalaysia
andFinancialReprtingStandardsissuedbyMalaysianAccuntingStandardsBard(MASB).
2. FLOATATION EXERCISE
Asanintegralpartthelistingandqutatinrtheentireenlargedissuedandpaid-upsharecapitalthe
Cmpany(reertDSC),DSCGrup(reertDSCSlutinsBerhad,DigitalScanningCrpratinPte.Ltd.andDSC
Systems(M)SdnBhd)undertktheFltatinExercisethatwasapprvedbytheSecuritiesCmmissin(SC)n28
Nvember2008,extendedvideitsletterdated26May2009until31December2009timplementthePublicIssue
andvariedthrughitsletterdated23octber2009.TheFltatinExerciseinvlvesthellwing:-
i Subdivision o Shares
TheCmpanysub-dividedtheparvaluetherdinarysharesRM1.00eachintten(10)newShares.Upn
cmpletintheSub-divisinShares,theissuedandpaid-upsharecapitaltheCmpanywillbeRM2
cmprising20Shares.
Thesub-divisinshareswascmpletedn23octber2009.
ii Acquisitions o Subsidiary Companies
(a) Acquisitintheentireissuedandpaid-upsharecapitalDigitalScanningCrpratinPte.Ltd.
(DIGITAL)cmprising1,038,745rdinaryshareswhichrepresents100%equityinterestinDIGITALr
attalpurchasecnsideratinRM3,774,128tbewhllysatisedthrughtheissuance37,741,280
newDSCShares;and
(b) Acquisitintheentireissuedandpaid-upsharecapitalDSCSystemsSdn.Bhd.(DSCM)cmprising
200,000rdinarysharesRM1.00eachwhichrepresents100%equityinterestinDSCMrattal
purchasecnsideratinRM168,070tbewhllysatisedthrughtheissuance1,680,700newDSC
Shares.
(c) Renunciatinrightstthealltment8,320,000DSCsharesarisingrmthealltmentnewshares
tbeissuedrtheAcquisitinDIGITAL,representing16.00%theenlargedandpaid-upsharecapital
DSCaterthePublicIssuetkeyemplyeestheDSCGrup.
TheabveAcquisitinswerecmpletedn23octber2009.
iii Public Issue
PublicIssue12,578,000newDSCSharesatanissuepriceRM0.50perDSCShare.
TheSharesshallbeallcatedtprspectiveinvestrsinthellwingmanner:-
(a) GeneralPublic
1,000,000DSCSharesrepresenting1.92%theenlargedissuedandpaid-upcapitalaterPublicIssue
willbemadeavailablerapplicatinbytheGeneralPublic;
(b) EligibleDirectorsandemployees
500,000DSCSharesrepresenting0.96%theenlargedissuedandpaid-upcapitalaterthePublic
IssuewillbereservedrapplicatinbytheeligibleDirectrsandemplyees;and
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2. FLOATATION EXERCISE (CONTD)
iii Public Issue cont'd
(c) Privateplacement
11,078,000DSCSharesrepresenting21.30%theenlargedissuedandpaid-upcapitalaterthePublic
Issuewillbemadeavailablerapplicatinbywayprivateplacementtidentiedinvestrs.
TheabvePublicIsuuewerecmpletedn2December2009.
iv Bonus Issue
BnusIssue52,000,000newDSCSharestbeissuedandcreditedasullypaid-upnthebasisne(1)
newDSCSharereveryne(1)DSCShareheldaterPublicIssue.
TheabveBnusIssuewascmpletedn2December2009.
v Listing and Quotation on the ACE Market o Bursa Malaysia Securities Berhad
IncnjunctinwiththeFltatinExercise,theCmpanyseekstheadmissinandthelistingandqutatin
rtheentireenlargedissuedandpaid-upsharecapitalDSCcmprising104,000,000DSCSharesnthe
ocialListtheACEMarketBursaMalaysiaSecuritiesBerhad.
on9December2009,theCmpanywaslistedandqutedntheACEMarketBursaMalaysiaSecurities
Berhad.
ThegrssprceedsarisingrmthePublicIssueamuntingtRM6,289,000areexpectedtbeullyutilised
rthecrebusinessDSCGrupinthellwingmanner:-
RM000
ResearchandDevelpmentcsts 1,800
Businessexpansinandcapitalexpenditure 1,400
Wrkingcapital 1,389
Listingexpenses 1,700
6,289
ThelistingexpensesareestimatedatRM1,700,000andwillbesetagainstthesharepremiumaccuntandunapprpriatedprtaccunt.
3. FINANCIAL RISK MANAGEMENT POLICIES
TheCmpanysnancialriskmanagementplicyseekstensurethatadequatenancialresurcesareavailabler
thedevelpmenttheCmpanysbusinesswhilstmanagingitsrisks.TheCmpanyperateswithinpliciesthat
areapprvedbytheBardDirectrsandtheCmpanysplicyisnttengageinspeculativetransactins.
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3. FINANCIAL RISK MANAGEMENT POLICIES (CONTD)
ThemainareasnancialrisksacedbytheCmpanyandthepliciesinrespectthemajrareastreasuryactivity
aresetutasllws:-
3.1 Foreign currency risk
TheCmpanyisexpsedtreigncurrencyriskasaresultitsnrmalperatingactivitieswherethecurrency
denminatindiersrmthelcalcurrency,RinggitMalaysia(RM).TheCmpanysplicyistminimisethe
expsurereigncurrencyriskbymatchinglcalcurrencyincmeagainstlcalcurrencycsts.
3.2 Credit risk
Thecreditriskiscntrlledbytheapplicatincreditapprvals,limitsandmnitringprcedures.Aninternal
creditreviewiscnductedithecreditriskismaterial.
3.3 Market risk
Frkeyprductpurchases,theCmpanyestablishesxedandfatingpricelevelsthattheCmpanycnsiders
acceptableandentersintphysicalsupplyagreements,wherenecessary,tachievetheselevels.TheCmpany
desntacesignicantexpsurermtheriskchangesinequityprices.
3.4 Liquidity and cash fow risks
TheCmpanyreliesnitsmanagementwrkingcapitaltensurethatthecashfwswithintheperating
cyclearesustainable.
TheCmpanyhassucientsupprtrmitsDirectrstmeetitshrt-termundingneeds.
4. SIGNIFICANT ACCOUNTING POLICIES
4.1 Accounting convention
ThenancialstatementstheCmpanyarepreparedunderthehistricalcstcnventin,unlesstherwise
indicatedinthesignicantaccuntingplicies.
Thenancialstatementsarepresentedinitsunctinalcurrency,RinggitMalaysia(RM).
4.2 Adoption o revised Financial Reporting Standards FRS
ThellwingarethestandardsandICInterpretatinsthatntyeteectiveandhaventbeenearlyadpted
bytheCmpany:-
(1) AmendmenttFRS1 -First-timeAdptinFinancialReprtingStandards.Amendmentsrelatingt
cstaninvestmentinasubsidiary,jintlycntrlledentityrassciate
(2) FRS1(#) - First-timeAdptinFinancialReprtingStandards
(3) AmendmenttFRS2 -ShareBasedPayment.Amendmentsrelatingtvestingcnditinsand
cancellatins
(4) AmendmentstFRS2(#) -ShareBasedPayment.Amendmentsrelatingtthescpethestandard
(5) FRS3(#) - BusinessCmbinatins
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4. SIGNIFICANT ACCOUNTING POLICIES (CONTD)
4.2 Adoption o revised Financial Reporting Standards FRS contd
ThellwingarethestandardsandICInterpretatinsthatntyeteectiveandhaventbeenearlyadpted
bytheCmpany(cntd):-
(6) FRS4 - InsuranceCntracts
(7) AmendmenttFRS5 -Nn-CurrentAssetsHeldrSaleandDiscntinuedoperatins.Amendment
relatingtdisclsuresnn-currentassets(rdispsalgrups)classied
asheldrsalerdiscntinuedperatins
(8) AmendmentstFRS5(#) -Nn-CurrentAssetsHeldrSaleandDiscntinuedoperatins.Amendment
relatingttheinclusinnn-currentassetsasheldrdistributintwnersinthestandard
(9) FRS7 - FinancialInstruments:Disclsures
(10) AmendmenttFRS7 -FinancialInstruments:Disclsures.Amendmentrelatingtnancialassets
(11) FRS8 - operatingSegments
(12) AmendmenttFRS8 -operatingSegments.Amendmentrelatingtdisclsureinrmatinabut
segmentassets
(13) FRS101 - PresentatinFinancialStatements(Revised)
(14) AmendmenttFRS107 -CashfwStatements.Amendmentrelatingtclassicatinexpenditures
nunrecgnsisedassets
(15) AmendmenttFRS108 - AccuntingPlicies,ChangesinAccuntingEstimatesandErrrs.Amendment
relatingtselectinandapplicatinaccuntingplicies
(16) AmendmenttFRS110 -EventsAtertheBalanceSheetDate.Amendmentrelatingtreasnr
dividendntrecgnisedasaliabilityattheendthereprtingperid
(17) AmendmenttFRS116 -Prperty,PlantandEquipment.Amendmentrelatingtderecgnitin
asset
(18) AmendmenttFRS117 -Leases.Amendmentrelatingtclassicatinleases
(19) AmendmenttFRS118 -Revenue.AmendmentrelatingtAppendixthisstandardandrecgnitin
andmeasurement
(20) AmendmenttFRS119 -EmplyeeBenets.Amendmentrelatingtdenitin,curtailmentand
settlements
(21) AmendmenttFRS120 - AccuntingrGvernmentGrantsandDisclsureGvernmentAssistance.
Amendmentrelatingtdenitinandgvernmentlanatabelwmarket
rateinterest
(22) FRS123 - BrrwingCsts(Revised)
(23) AmendmenttFRS123 -Brrwingcsts.Amendmentrelatingtexclusinincidentalcsttbrrwing
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4. SIGNIFICANT ACCOUNTING POLICIES (CONTD)
4.2 Adoption o revised Financial Reporting Standards FRS contd
ThellwingarethestandardsandICInterpretatinsthatntyeteectiveandhaventbeenearlyadpted
bytheCmpany(cntd):-
(24) AmendmenttFRS127 -CnslidatedandSeparateFinancialStatements.Amendmentsrelatingt
cstaninvestmentinasubsidiary,jintlycntrlledentityrassciate
(25) FRS127(#) - CnslidatedandSeparateFinancialStatements
(26) AmendmenttFRS128 -InvestmentsinAssciates.AmendmentrelatingtImpairmentlssesin
applicatintheequitymethdandthescpethisstandard
(27) AmendmenttFRS129 -FinancialReprtinginHyperinfatinaryEcnmies.Amendmentrelating
tchangingtermsused
(28) AmendmenttFRS131 -InterestsinJintVentures.Amendmentrelatingtadditinaldisclsure
requiredrjintventurethatdesntapplyFRS131
(29) AmendmenttFRS132 - FinancialInstruments:Presentatin.Amendmentrelatingtputtablenancial
instruments
(30) AmendmenttFRS134 -InterimFinancialReprting.Amendmentrelatingtdisclsureearnings
pershare
(31) AmendmenttFRS136 -ImpairmentAssets.Amendmentrelatingtthedisclsurerecverableamunt
(32) AmendmenttFRS138 -IntangibleAssets.Amendmentrelatingtrecgnitinanexpense
(33) FRS138(#) - I ntangibleAssets.AmendmentsrelatingttherevisintFRS3
(34) FRS139 - FinancialInstruments:RecgnitinandMeasurement
(35) AmendmenttFRS139 -FinancialInstruments:RecgnitinandMeasurement.Amendmentrelating
teligiblehedgeditems,reclassicatinnancialassetsandembedded
derivatives
(36) AmendmenttFRS140 - InvestmentPrperty.Amendmentrelatingtinabilitytdetermineairvalue
reliably
(37) ICInterpretatin9 -ReassessmentEmbeddedDerivatives
(38) AmendmentstIC -ReassessmentEmbeddedDerivatives.
Interpretatin9(#) AmendmentsrelatingtthescpetheICandrevisintFRS3
(39) ICInterpretatin10 - InterimFinancialReprtingandImpairment
(40) ICInterpretatin11 -FRS2-GrupandTreasuryShareTransactins
(41) ICInterpretatin12(#) -ServiceCncessinArrangements
(42) ICInterpretatin13 - CustmerLyaltyPrgrammes
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4. SIGNIFICANT ACCOUNTING POLICIES (CONTD)
4.2 Adoption o revised Financial Reporting Standards FRS contd
ThellwingarethestandardsandICInterpretatinsthatntyeteectiveandhaventbeenearlyadpted
bytheCmpany(cntd):-
(43) ICInterpretatin14 - FRS119-ThelimitnaDenedBenetAsset,MinimumFundingRequirements
andTheirInteractin
(44) ICInterpretatin15(#) -AgreementsrtheCnstructinRealEstate
(45) ICInterpretatin16(#) -HedgesaNetInvestmentinaFreignoperatin
(46) ICInterpretatin17(#) -DistributinsNn-cashAssetstwners
AlltheabveAmendments,IcInterpretatinsandFRSswillbeeectiveraccuntingperidbeginningn
rater1January2010,therthanFRS8andthsemarkedwith(#)whichwillbeapplicabletaccunting
peridbeginningnrater1July2009and1July2010respectively.TheExistingFRS1,FRS3,FRS127aswell
asFRS2012004willbewithdrawnupntheadptinthenewrequirementsthattakeeectn1July2010.
FRS1,2,4,5,116,117,120,123,128,129,131and140andICInterpretatin9,10,11,12,13,14,15,16and17
arentexpectedtberelevantttheperatinstheCmpany.ThedirectrsanticipatethatthetherFRS,
amendmentstFRSandICInterpretatinswillbeadptedintheannualnancialstatementstheCmpany
rthenancialyearcmmencing1octber2010andthattheadptinthesenew/revisedFRS,amendments
tFRSandICInterpretatinswillhavenmaterialimpactnthenancialstatementstheCmpanyinthe
peridinitialapplicatinexceptrthellwing:
FRS3BusinessCombination
Therevisedstandardcntinuestapplytheacquisitinmethdtbusinesscmbinatins,withsmesignicant
changes.Allpaymentstpurchaseabusinessaretberecrdedatairvalueattheacquisitindate,with
cntingentpaymentsclassiedasdebtsubsequentlyre-measuredthrughtheincmestatement.Thereisa
chicetmeasurethenn-cntrllinginterestintheacquireeatairvalueratthenn-cntrllinginterests
prprtinatesharetheacquireesnetassets.Allacquisitin-relatedcstsshuldbeexpensed.
FRS7FinancialInstruments:Disclosures
FRS7andthecnsequentialamendmenttFRS101PresentatinFinancialStatementsrequiredisclsure
inrmatinabutthesignicancenancialinstrumentsrtheCmpanysnancialpsitinandperrmance,
thenatureandextentrisksarisingrmnancialinstrumentsandthebjectives,pliciesandprcessesr
managingcapital.
FRS8OperatingSegments
FRS8,whichreplacesFRS1142004SegmentReprting,requirestheidenticatinperatingsegmentsbased
ninternalreprtsthatareregularlyreviewedbytheCmpanyschieperatingdecisinmakerinrdert
allcateresurcestthesegmentsandtassesstheirperrmance.Currently,theCmpanyidentiestwsets
segments(businessandgegraphical)usingarisksandrewardsapprach,withtheCmpanyssystem
internalnancialreprtingtkeymanagementpersnnelservingnlyasthestartingpintrtheidenticatin
suchsegments.Asaresult,llwingtheadptinFRS8,theidenticatintheCmpanysreprtable
segmentsmaychange.
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4. SIGNIFICANT ACCOUNTING POLICIES (CONTD)
4.2 Adoption o revised Financial Reporting Standards FRS contd
FRS127ConsolidatedandSeparateFinancialStatements
Therevisedstandardrequirestheeectsalltransactinswithnn-cntrllingintereststberecrdedin
equityithereisnchangeincntrlandthesetransactinswillnlngerresultingdwillrgainsand
lsses.Thestandardalsspeciestheaccuntingwhencntrlislst.Anyremaininginterestintheequity
isre-measuredtairvalue,andagainrlssisrecgnisedinprtrlss.Lssesarerequiredtallcatet
nn-cntrllinginterests,eveniitresultsinthenn-cntrllinginteresttbeinadecitpsitin.
FRS139FinancialInstruments:RecognitionandMeasurement
FRS139establishesprinciplesrrecgnisingandmeasuringnancialassets,nancialliabilitiesandsmecntractstbuyandsellnn-nancialitems.Byvirtuetheexemptininparagraph103ABFRS139,the
impactnthenancialstatementsupnrstadptinthisstandardasrequirebyparagraph30(b)FRS
108,AccuntingPlicies,ChangesinAccuntingEstimatesandErrrsisntdisclsed,iany.
4.3 Signicant Accounting Estimates and Judgements
Estimates,assumptinscncerningtheutureandjudgementsaremadeinthepreparatinthenancial
statements.TheyaecttheapplicatintheCmpany'saccuntingpliciesandreprtedamuntsassets,
liabilities,incmeandexpenses,anddisclsuresmade.Theyareassessednann-gingbasisandarebased
nexperienceandrelevantactrs,includingexpectatinsutureeventsthatarebelievedtbereasnable
underthecircumstances.Actualresultmaydierrmtheseestimates.
Key sources o estimation uncertainty
Thekeyassumptinscncerningtheutureandtherkeysurcesestimatinuncertaintyatthebalance
sheetdate,thathavesignicantriskcausingamaterialadjustmenttthecarryingamuntsassetsand
liabilitieswithinthenextnancialyeararediscussedbelw:-
Incometaxes/Deferredtaxliabilities
SignicantjudgementisinvlvedindeterminingtheCmpanysprvisinrincmetaxes.Therearecertain
transactinsandcmputatinsrwhichtheultimatetaxdeterminatinisuncertainduringtherdinarycurse
business.TheCmpanyrecgnisedtaxliabilitiesbasednestimateswhetheradditinaltaxeswillbedue.
Wherethenaltaxutcmethesemattersisdierentrmtheamuntsthatwereinitiallyrecgnised,such
dierencewillimpacttheincmetaxanddeerredtaxprvisinsintheperidinwhichsuchdeterminatinis
made.
Thedevelpmentcstsareamrtisedinastraight-linebasisvertheliespanthedevelpedassets.
Managementestimatedtheuseullietheseassetstbewithin3years.Changesinthetechnlgical
develpmentsculdimpacttheecnmicuseullieandtheresidualvaluestheseassets,therereuture
amrtisatinchargesculdberevised.
Amortisationandimpairmentofdevelopmentcosts
TheCmpanycarriedutimpairmenttestbasednavarietyestimatinincludingthevalue-in-useCash
GeneratingUnit(CGU)twhichthedevelpmentcstsareallcated.Estimatingthevalue-in-userequiresthe
CmpanytmakeanestimatetheexpecteduturecashfwsrmtheCGUandalstchseasuitable
discuntrateinrdertcalculatethepresentvaluethsecashfws.Thecarryingamuntdevelpment
cststheCmpanyasat30September2009isRM784,653(2008:RM359,325).
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4. SIGNIFICANT ACCOUNTING POLICIES (CONTD)
4.4 Research and development cost
Expenditurenresearchactivitiesisrecgnisedasanexpenseintheperidinwhichitisincurred.
Develpmentcstareexpensedintheperidinwhichtheyareincurredexceptwhenthecstincurredn
develpmentprjectarerecgnisedasdevelpmentassetsttheextentthatsuchexpenditureisexpected
tgeneratesutureecnmicbenets.
Develpmentcstinitiallyrecgnisedasanexpenseisntrecgnisedasanassetinsubsequentyear.
Capitaliseddevelpmentcst,cnsideredthaveniteuseullie,isamrtisednasystematicbasisvertheir
expecteduseulliveswhichis3yearscmmencingrmthetimewhentheprductisavailablersaleand
assessedrimpairmentwheneverthereisanindicatinthatthedevelpmentcstmaybeimpaired.Shuldtheprductrprjectbeabrded,therelativeexpenditurewillbechargettheincmestatementinthe
peridinwhichsuchdecisinismade.
Theamrtisatinperidandtheamrtisatinmethdrthedevelpmentcstwithaniteuseullieare
reviewedatleastateachnancialyearend.
Theamrtisatinexpensendevelpmentcstwithniteuseullieisrecgnisedintheincmestatementin
theexpensescategry.
4.5 Receivables
Receivablesarecarriedatanticipatedrealisablevalue.Baddebtsarewrittenintheperidinwhichthey
areidentied.Anallwanceismaderdubtuldebtsbasednareviewallutstandingamuntsatthenancialperidend.
4.6 Cash and cash equivalents
Cashandcashequivalentscmprisecashnhandandcashatbank,whicharereadilycnvertibletknwn
amuntscashwhicharesubjecttaninsignicantriskchangesinvalue.
4.7 Payables
Payablesarestatedatcstwhichisairvaluethecnsideratintbepaidintheuturergdsandservices
received.
4.8 Revenue recognition
RevenuermsalegdsandservicesarerecgnisedwhentheCmpanyhastranserredtthebuyerthe
signicantrisksandrewardswnershipthegdsandservices.
Revenuermmaintenanceeeisrecgnisedntheprvisinassessmentanddevelpmentserviceswhich
isbasedntheeeincmetimewrked.
Revenuermlicensedeeisrecgnisedwhenitisprbablethatlicensedeewillbereceived,whichisnrmally
whentheeventhasccurred.
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4. SIGNIFICANT ACCOUNTING POLICIES (CONTD)
4.9 Impairment o assets
Ateachbalancesheetdate,theCmpanyreviewsthecarryingamuntsitsassetstdeterminewhether
thereisanyindicatinimpairment.Intangibleassetwithindeniteuseulliesuchasgdwillistestedr
impairmentatleastnceannuallyrmrerequentlyieventsrchangesincircumstancesindicatethatthe
carryingvaluemaybeimpairedeitherindividuallyratthecash-generatingunitlevel.
Ianysuchindicatinexists,rwhenannualimpairmenttestingranassetisrequired,therecverableamunt
isestimatedandanimpairmentlssisrecgnisedwhenevertherecverableamunttheassetracash-
generatingunitislessthanitscarryingamunt.Recverableamuntanassetracash-generatingunitis
thehigheritsairvaluelesscststsellanditsvalueinuse.
Inassessingvalueinuse,theestimateduturecashfwsarediscuntedttheirpresentvalueusingapre-tax
discuntratethatrefectscurrentmarketassessmentsthetimevaluemneyandtherisksspecictthe
asset.Impairmentlssescntinuingperatinsarerecgnisedintheincmestatementinthseexpense
categriescnsistentwiththeunctintheimpairedasset.
Animpairmentlssisrecgnisedasanexpenseintheincmestatementimmediately.
Anassessmentismadeateachbalancesheetdateastwhetherthereisanyindicatinthatpreviuslyrecgnised
impairmentlssesranassettherthangdwillmaynlngerexistrmayhavedecreased.Isuchindicatin
exists,therecverableamuntisestimated.Apreviuslyrecgnisedimpairmentlssisreversednlyithere
hasbeenachangeintheestimatesusedtdeterminetheassetrecverableamunt.Thatincreasedamunt
canntexceedthecarryingamuntthatwuldhavebeendetermined,netdepreciatin,hadnimpairment
lssbeenrecgnisedrtheassetinpriryears.
Allreversalsimpairmentlssesarerecgnisedasincmeimmediatelyintheincmestatement.
Animpairmentlssrecgnisedrgdwillshallntbereversedinasubsequentperid.
4.10 Financial instruments
Financialinstrumentscarriednthebalancesheetincludecashandbankbalances,receivablesandpayables.
Theparticularrecgnitinmethdsadptedaredisclsedin theindividualaccuntingplicystatements
assciatedwitheachitem.
Financial instrumentsaresetwhentheCmpanyhasalegallyenrceablerighttsetthe
recgnisedamuntsandintendseithertsettlenanetbasis,rtrealisetheassetandsettletheliability
simultaneusly.
4.11 Foreign currency translation and balances
ThenancialstatementsarepresentedinMalaysiaRinggit,whichisalstheunctinalcurrencythe
Cmpany.
TransactinsinreigncurrenciesarerecrdedinRinggitMalaysiaatratesexchangerulingatthedatethe
transactins.Freigncurrencymnetaryassetsandliabilitiesaretranslatedatexchangeratesrulingatbalance
sheetdate.
Gainsandlssesresultingrmsettlementsuchtransactinsandcnversinmnetaryassetsandliabilities,
whetherrealisedrunrealised,areincludedintheincmestatementastheyarise.
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4.12 Equity instruments
ordinarysharesareclassiedasequitywhicharerecrdedatthenminalvalueandprceedsinexcessthe
nminalvaluesharesissued,iany,areaccuntedrassharepremium.Bthrdinarysharesandshare
premiumareclassiedasequity.Dividendsnrdinarysharesrecgnisedasliabilitieswhendeclared.
4.12 Equity instruments
Thetransactincstsanequitytransactinwhichcmprisenlythseincrementalexternalcstsdirectly
attributablettheequitytransactinareaccuntedrasadeductinrmequity,nettax,rmthe
prceeds.
5. PRINCIPAL ACTIVITY AND GENERAL INFORMATION
TheCmpanyisprincipallyengagedindevelpmentandprvisinstwareandengineeringcnsultancyr
AutmatedIdenticatinandDataCllectin(AIDC)andinvestmenthldingcmpany.
TherehavebeennsignicantchangesinthenaturetheseactivitiestheCmpanyduringthenancialyear.
TheCmpanyisapubliclimitedliabilitycmpany,incrpratedanddmiciledinMalaysiaandlistedntheACE
MarketBursaMalaysiaSecuritiesBerhadn9December2009.
TheregisteredcetheCmpanyislcatedat3rdFlr,N.79(RmA),JalanSS21/60,DamansaraUtama,47400
PetalingJaya,SelangrDarulEhsan.TheprincipalplacebusinesstheCmpanyislcatedatSuite30.10,Business
InnvatinCentre,Level30,MenaraMSCCyberprt5,JalanBukitMeldrum,JhrBahru,80300Jhr.
ThenancialstatementswereauthrisedrissuebytheBardDirectrsinaccrdancewithareslutinthe
Directrsn20January2010.
6. SHARE CAPITAL
2009 2008
RM RM
Authrised:-
ordinarysharesRM1.00each
100,000sharesatbeginning/endthenancialyear 100,000 100,000
Issuedandullypaid:-
ordinarysharesRM1.00each
2sharesatbeginning/endthenancialyear 2 2
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7. DEVELOPMENT COSTS
2009 2008
RM RM
Cost
Brughtrward 824,863 505,537
Additins 1,017,316 319,326
Carriedrward 1,842,179 824,863
Accumulated amortisation
Brughtrward 465,538 179,548
Chargedduringthenancialyear 591,988 285,990
Carriedrward 1,057,526 465,538
Netcarryingamunt 784,653 359,325
Develpmentcstsarecstsincurredrdevelpingstwareinrdertselltthercustmers.
ThemanagementtheGrupcarriedutareviewtherecverableamuntitsdevelpmentcstsduringthe
nancialyear.Thereviewdidntleadtanyrecgnitinimpairmentlss.
Therecverableamuntwasbasednvalue-in-useandwasdeterminedatthecashgeneratingunit(CGU).In
determiningvalue-in-usertheCGU,cashfwswerediscuntedatarate6.75%napre-taxbasis.ThediscuntrateisbasedntheBaseLendingRate(BLR)inMalaysia.
8. TRADE RECEIVABLES
IncludedintradereceivablesareamuntduermcmpaniesinwhichDirectrshaveinterestRM3,002,498(2008:
RM2,254,163).
TheamuntduermcmpaniesinwhichDirectrshaveinterestisunsecured,bearsninterestandnscheme
repaymenthasbeenarranged.Thesebalanceswillbecmeinter-cmpanybalancesasthesecmpaniesareinvlved
inthelistingexerciseasdisclsedinNte19ttheFinancialStatements.
Thecurrencyexpsureprlethetradereceivables,therthandenminatedintheCmpanysunctinalcurrency
isasllws(reigncurrencybalanceareunhedged):-
2009 2008
RM RM
SingapreDllar 3,002,498 2,060,944
TheCmpanysnrmaltradecreditrmrangesrm30dayst90days.othercredittermsareassessedandapprved
nacase-by-casebasis.
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9. OTHER RECEIVABLES
2009 2008
RM RM
Rentaldepsit 2,500 4,600
Prepaymentlistingexpenses 758,494 320,279
760,994 324,879
Thelistingexpenseswillbesetagainstthesharepremiumaccuntandunapprriatedprtaccuntupnthe
cmpletintheftatinexercise.
10. TRADE PAYABLES
Inthepreviusnancialyear,thetradepayableswasanamuntduermacmpanyinwhichDirectrshave
interest.
ThecreditstermsgrantedbythetradepayablesttheCmpanyrangedrm30dayst180days.
11. OTHER PAYABLES
2009 2008
RM RM
Accrualsexpenses 171,500 4,000
Nn-tradepayable 46,658 16,670
AmuntduetacmpanyinwhichDirectrshaveinterest 40,427
258,585 20,670
TheamuntduetcmpaniesinwhichDirectrshaveinterestisunsecured,bearsninterestandnscheme
repaymenthasbeenarranged.Thisbalancewillbecmeinter-cmpanybalanceasthiscmpanyisinvlvedinthe
listingexerciseasdisclsedinNte19ttheFinancialStatements.
Thecurrencyexpsureprlethetherpayables,therthanbalancesdenminatedintheCmpanysunctinal
currencyisasllws(reigncurrencybalanceareunhedged):-
2009 2008
RM RM
SingapreDllar 10,737
12. REVENUE
TherevenuetheCmpanyrepresentsincmermsalesstwarerdigitalandlicensedeescharged.
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13. PROFIT BEFORE TAXATION
Prtberetaxatinhasbeendeterminedaterchargingamngsttheritemsthellwings:-
2009 2008
RM RM
Auditrsremuneratin -statutryaudit 15,000 4,000
-specialauditrinitialpublicerings 4,000
Amrtisatindevelpmentcsts 591,988 285,990
Directrstheremlument 150,000
ocerental 8,000 13,750
Realisedreignexchangelss 6,809 465
14. TAXATION
ThereisnprvisinrtaxatinrtheCmpanyastheCmpanywasgrantedapineerstatusrapprvedqualiying
activityincmederivedrmMultimediaSuperCrridrprjectraperid5yearsexpiringn3August2011.
Ndeerredtaxliabilitieshasbeenprvidedrthetaxabletemprarydierencesnthedevelpmentexpendituren
theassumptinthattheCmpanywillmakeanapplicatintMultimediaDevelpmentCrpratinranextensin
itspineerperidrm4August2011t3August2016whenitsexistingpineerperidendsn3August2011.
Theextensinthepineerperidraurther5yearsissubjecttulllingallthecnditinsrextensinsetby
theMultimediaDevelpmentCrpratin.
Arecnciliatinincmetaxexpensesapplicabletprtberetaxatinatthestatutrytaxratettheincme
taxexpensesattheeectivetaxratetheCmpanyareasllws:-
2009 2008
RM RM
Prtberetaxatin 2,339,941 1,823,961
TaxatinatMalaysianstatutrytaxrate25%(2008:26%) 584,985 474,230
Taxeectsinrespect:-
Expensesntdeductiblertaxpurpses 131,596 74,014
Taxsavingsrmpineerstatus (520,581) (458,412)
Deerredtaxliabilitiesntrecgnisedduet
pineerstatusgranted (196,000) (89,832)
Eectivetaxexpenses
SubjecttagreementbytheInlandRevenueBard,theCmpanyhassucienttaxexemptincmetrankthe
paymentdividendsttheextentRM4,739,110(2008:RM2,656,787)utitsretainedprtsasat30September
2009.
TheMalaysianBudget2008intrducedasingletiercmpanyincmetaxsystemwitheectrmyearassessment
2008.Assuch,theSectin108taxcreditasat30September2009willbeavailablettheCmpanyuntilsuchtimethe
creditisullyutilisedrupnexpirythesix-yeartransitinalperidn30September2013,whicheverisearlier.
Hwever,theabveamuntsaresubjectttheapprvaltheInlandRevenueBardM