CONTENTS

Corporate Information 2

Group Corporate Structure 3

&KTGEVQTUŏ2TQſNG 4

-G[2GTUQPPGN2TQſNG 11

%'1/CPCIGOGPV&KUEWUUKQPCPF#PCN[UKU5VCVGOGPV 12

5WUVCKPCDKNKV[5VCVGOGPV 16

Audit and Risk Management Committee Report 20

Corporate Governance Overview Statement 23

#FFKVKQPCN%QORNKCPEG+PHQTOCVKQP 32

5VCVGOGPVQP4KUM/CPCIGOGPV+PVGTPCN%QPVTQN 33

4GRQTVU(KPCPEKCN5VCVGOGPV 36

0QVKEGQH6JG5GXGPVGGPVJ#PPWCN)GPGTCN/GGVKPI 192

5VCVGOGPV#EEQORCP[KPI0QVKEGQH6JG5GXGPVGGPVJ#PPWCN)GPGTCN/GGVKPI 195

#PCN[UKU1H5JCTGJQNFKPIU 196

#PCN[UKU1H9CTTCPVJQNFKPIU 198

Form of Proxy 201 CORPORATE INFORMATION

Lim Een Hong Lim Thian Loong %JKGH'ZGEWVKXG1HſEGT'ZGEWVKXG&KTGEVQT Independent Non-Executive Director

Dato’ Lee Chin Chong Su Keong Siong Executive Director Independent Non-Executive Director

BOARD OF Dato’ Dr Mohd Ariff Bin Araff Chang Lih Kang DIRECTORS Senior Independent Non-Executive Director Independent Non-Executive Director Prof. Dato’ Raja Munir Shah Bin Raja Mustapha Independent Non-Executive Director

AUDIT AND RISK COMPANY SECRETARIES AUDITORS MANAGAMENT COMMITTEE

Chairman Wong Youn Kim UHY (AF 1411) Dato’ Dr Mohd Ariff Bin Araff MAICSA 7018778 Chartered Accountants Senior Independent Non-Executive Director 55/2TCEVKEKPI%GTVKſECVG0Q 5WKVG.GXGN The Gardens South Tower Members Sin May Peng /KF8CNNG[%KV[ Prof. Dato’ Raja Munir shah Bin MAICSA 7018354 Lingkaran Syed Putra Raja Mustapha 55/2TCEVKEKPI%GTVKſECVG0Q -WCNC.WORWT Independent Non-Executive Director 6GN0Q (CZ0Q Lim Thian Loong REGISTERED OFFICE Independent Non-Executive Director SHARE REGISTRAR .GXGN6QYGT#XGPWG NOMINATION COMMITTEE $CPIUCT5QWVJ%KV[ Tricor Investor & Issuing House -WCNC.WORWT Services Sdn. Bhd. 6GN0Q 7PKV.GXGN6QYGT# Chairman (CZ0Q 8GTVKECN$WUKPGUU5WKVG Dato’ Dr Mohd Ariff Bin Araff #XGPWG$CPIUCT5QWVJ Senior Independent Non-Executive Director 0Q,CNCP-GTKPEJK -WCNC.WORWT Members CORPORATE OFFICE 6GN0Q Prof. Dato’ Raja Munir Shah Bin (CZ0Q Raja Mustapha 0Q,CNCP Independent Non-Executive Director 6KQPI0CO+PFWUVTKCN2CTM5GEVKQP 5JCJ#NCO PRINCIPAL BANKERS Lim Thian Loong 5GNCPIQT&CTWN'JUCP Independent Non-Executive Director 6GN0Q /CNC[CP$CPMKPI$GTJCF (CZ0Q *5$%$CPM$GTJCF YGDUKVGYYYGFWURGEEQOO[ %+/$$CPM$GTJCF REMUNERATION COMMITTEE 'OCKNEQTRQTCVGCHHCKTU"GFWURGEEQOO[ 7PKVGF1XGTUGCU$CPM.KOKVGF (Singapore) Chairman 1%$%$CPM5KPICRQTG Prof. Dato’ Raja Munir Shah Bin Raja Mustapha STOCK EXCHANGE LISTING Independent Non-Executive Director

Member #%'/CTMGVQHVJG$WTUC/CNC[UKC Dato’ Dr Mohd Ariff Bin Araff 5GEWTKVKGU$GTJCF Senior Independent Non-Executive Director 5VQEM0COG '&752'% 5VQEM%QFG  Lim Thian Loong Independent Non-Executive Director

'FWURGE*QNFKPIU$GTJCF (200401008252) 2 #PPWCN4GRQTV GROUP CORPORATE STRUCTURE

'FWURGE*QNFKPIU$GTJCF (200401008252) 3 #PPWCN4GRQTV DIRECTORS’ PROFILE

LIM EEN HONG Male, Aged 54, Malaysian %JKGH'ZGEWVKXG1HſEGT 'ZGEWVKXG&KTGEVQT

/T.KO'GP*QPIYCUCRRQKPVGFVQVJG$QCTFQP/CTEJ $GUKFGU VJG /CNC[UKCP OCTMGV /T .KO CNUQ CEVKXGN[ CPFYCUTGFGUKIPCVGFCU%JKGH'ZGEWVKXG1HſEGTQHVJG EQNNCDQTCVGU YKVJ JKU EQWPVGTRCTVU KP 5KPICRQTG %JKPC %QORCP[QP5GRVGODGT +PFQPGUKC 6JCKNCPF CPF 8KGVPCO KP UGGMKPI VQ GUVCDNKUJ TGIKQPCNOCTMGVRTGUGPEGCPFVQKPVTQFWEGXCTKQWUGFWECVKQP $GHQTGEQOKPIHWNNVKOGKPVQVJG'FWECVKQPKPFWUVT[KP RTQITCOUCPFUGTXKEGUVQVJGUGEQWPVTKGUKPVJGTGIKQP /T.KOYCUCNCY[GTD[RTQHGUUKQPCPFJCFDGGPRTCEVKEKPI EQPVKPWQWUN[UKPEGCUCPCFXQECVGCPFUQNKEKVQTQHVJG /T .KO JCU CVVGPFGF CNN VJG HQWT   $QCTF QH &KTGEVQTUŏ *KIJ %QWTV QH /CNC[C /T .KO YCU C RCTVPGT KP VJG NGICN OGGVKPIUJGNFFWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[ practice of Messrs Eugene Tan & Co before he set up his  QYPſTO/T.KOYCUVJGHQWPFGTCPFOCPCIKPIRCTVPGTQH /GUUTU'*.KO.GG2CTVPGTUYJKEJYCUUGVWRKP /T .KO JCU PQ FKTGEVQTUJKR KP CP[ QVJGT RWDNKE NKUVGF /T.KOJCFUKPEGEGCUGFNGICNRTCEVKEGVQEQOOKVJKUECTGGT EQORCP[ *G JCU PQ HCOKN[ TGNCVKQPUJKR YKVJ CP[ QVJGT KP'FWECVKQP &KTGEVQT CPFQT OCLQT UJCTGJQNFGT QH VJG %QORCP[ CPF his directorship in the Company does not give rise to any Since his debut into the Education industry Mr Lim has EQPƀKEVQHKPVGTGUVUKVWCVKQP*GJCUPQVDGGPEQPXKEVGFQH YQTMGF VKTGNGUUN[ VQ YJCV JG VGTOGF CU KPUVKVWVKQPCNKUKPI CP[QHHGPEGYKVJKPVJGRCUVſXG  [GCTU QVJGTVJCPVTCHſE -GFWECVKQP5KPEGLQKPKPIVJGDQCTF/T.KOJCUYQTMGF QHHGPEG KH CP[  PQT KORQUGF YKVJ CP[ RWDNKE UCPEVKQP QT FKNKIGPVN[ VQ RTQOQVG JKU KFGCNU KP RWDNKE QT SWCUKRWDNKE RGPCNV[D[VJGTGNGXCPVTGIWNCVQT[DQFKGUFWTKPIVJGſPCPEKCN 'FWECVKQP UGEVQT #V JKU KPKVKCVKXG VJG '*$ )TQWR KU PQY [GCTGPFGF(GDTWCT[ YQTMKPIXGT[ENQUGN[YKVJXCTKQWUOWNVKPCVKQPCNEQORCPKGU UWEJCU/KETQUQHV#EGTCPFXCTKQWU/1'UKPVJG5QWVJGCUV #UKC TGIKQP /T .KO JCU CNUQ GPFGCXQWTGF VQ EQTTQDQTCVG YKVJQVJGTRNC[GTUKPVJGKPFWUVT[VQUGGCDGVVGTITQYVJKP VJGSWCNKVCVKXGCURGEVUKPVJGKPFWUVT[

'FWURGE*QNFKPIU$GTJCF (200401008252) 4 #PPWCN4GRQTV DIRECTORS’ PROFILE (cont’d)

DATO’DA DR MMOHDO ARIFF BIN ARAFF MMale,a Aged 76, MMalaysiana 5G5GPKQT+PFGRGPFGPV0QPP ''ZGEWVKXG&KTGEVQTZG

&CVQŏ&T/QJF#TKHH$KP#TCHHYCUCRRQKPVGFVQVJG$QCTFQP &GEGODGT&CVQŏ#TKHHYCUTGFGUKIPCVGFCU%JCKTOCP of the Audit and Risk Management Committee on 15 September  &CVQŏ #TKHH KU CNUQ VJG %JCKTOCP QH VJG 0QOKPCVKQP %QOOKVVGGCPFC/GODGTQHVJG4GOWPGTCVKQP%QOOKVVGG +P  &CVQŏ #TKHH YCU CRRQKPVGF CU C $QCTF /GODGT QH /CNC[UKC 'PGTI[ %GPVTG 2WUCV 6GPCIC /CNC[UKC 26/  WPVKN &CVQŏ#TKHHJQNFUC$CEJGNQTQH5EKGPEG *QPU HTQO7PKXGTUKV[ 1EVQDGT7UKPIJKUXCUVGZRGTKGPEGUKP2QYGT'PIKPGGTKPI QH$TKIJVQPKP7PKVGF-KPIFQO/+'/ /CNC[UKC 2'PI/+'' CPF/CPCIGOGPV&CVQŏ#TKHHJGNRGFVQUVGGT26/VQDGEQOG %'PI 7PKVGF-KPIFQO /+''' 75# 5/2 *CTXCTF #/2 CRTGOKGT2QYGT4GUGCTEJ+PUVKVWVG&CVQŏ#TKHHYCUCRRQKPVGF +05'#& CPF&505526, %JCKTOCP QH /+/15 $GTJCF C RTGOKGT IQXGTPOGPVQYPGF 4& GUVCDNKUJOGPV HQT +%6 UKPEG 1EVQDGT  WPVKN VJ &CVQŏ #TKHH JCU GZVGPUKXG GZRGTKGPEG KP 'NGEVTKE 7VKNKV[ &GEGODGT+PYJKNGCU%JCKTOCPQH/+/15&CVQŏ 'PIKPGGTKPI CPF /CPCIGOGPV &CVQŏ #TKHH JCU YQTMGF KP #TKHHYCUEQPHGTTGFVJGRTGUVKIKQWUCYCTF526, XCTKQWUECRCEKVKGUKP)GPGTCVKQP6TCPUOKUUKQPCPF&KUVTKDWVKQP &KXKUKQPU QH 6GPCIC 0CUKQPCN VJG DKIIGUV GNGEVTKE WVKNKV[ KP &CVQŏ#TKHHKU%Q%JCKTOCPQH&QDNG+PVGTPCVKQPCN'PIKPGGTKPI /CNC[UKC+PVJG[GCTUJGJCUYQTMGFYKVJ6GPCIC0CUKQPCN %QOOKVVGG 75# HQT6TCPUHQTOGTU&CVQŏ#TKHHYCUQPEGVJG &CVQŏ#TKHHJCUEQORNGVGFOCP[XCTKGFCUUKIPOGPVUKPCTGCUQH 2TGUKFGPVQH60$5GPKQT1HſEGTU#UUQEKCVKQP C6TCFG7PKQP  )GPGTCVKQPCPF6TCPUOKUUKQP2TQLGEVU)GPGTCVKQP1RGTCVKQP CPF EWTTGPVN[ JQNFU UGXGTCN RQUKVKQPU CU #FXKUQT%JCKTOCP 7VKNKV[2NCPPKPI6TCPUOKUUKQPCPF&KUVTKDWVKQP/CPCIGOGPV+6 $QCTF /GODGT QH RTKXCVG EQTRQTCVKQPU CPF EQQRGTCVKXG #RRNKECVKQPUKP&KUVTKDWVKQP%QTRQTCVG/CPCIGOGPV4GUGCTEJ KPUVKVWVKQPU CPF&GXGNQROGPVCPF%QOOGTEKCNK\CVKQPQH4GUGCTEJ2TQFWEVU &CVQŏ#TKHHCVVGPFGFCNNVJG$QCTFOGGVKPIUJGNFFWTKPIVJG 4GVKTGFHTQO60$KP#RTKNCU/CPCIKPI&KTGEVQT%'1QH ſPCPEKCN[GCTGPFGF(GDTWCT[ 60$ 4GUGCTEJ &CVQŏ #TKHH YCU TGCRRQKPVGF CU CP #FXKUQT VQ 60$ 4GUGCTEJ QP EQPVTCEV DCUKU HQT VYQ [GCTU CPF VJGTGCHVGT &CVQŏ #TKHH JCU PQ FKTGEVQTUJKR KP CP[ QVJGT RWDNKE NKUVGF YCUCRRQKPVGFCUC&KTGEVQTVQVJG$QCTFQH60$4GUGCTEJ5FP EQORCP[ &CVQŏ #TKHH JCU PQ HCOKN[ TGNCVKQPUJKR YKVJ CP[ $JFHTQOWPVKN5GRVGODGT&CVQŏ#TKHHKUCOGODGT &KTGEVQTCPFQTUWDUVCPVKCNUJCTGJQNFGTQHVJG%QORCP[CPFJKU QH#5'#09QTMKPI)TQWRQP7VKNKV[5VCPFCTFUCUYGNNCUVJG FKTGEVQTUJKRKPVJG%QORCP[FQGUPQVIKXGTKUGVQCP[EQPƀKEV 9QTMKPI)TQWRQP4GUGCTEJ&GXGNQROGPVCPF'PIKPGGTKPI QHKPVGTGUVUKVWCVKQP&CVQŏ#TKHHJCUPQVDGGPEQPXKEVGFQHCP[ +PVGTPCVKQPCNN[ &CVQŏ #TKHH KU C TGIKUVGTGF 70+&1 'ZRGTV QP QHHGPEGYKVJKPVJGRCUVſXG  [GCTU QVJGTVJCPVTCHſEQHHGPEG Energy Audit and Energy Conservation and UNCTAD Expert on KHCP[ PQTKORQUGFYKVJCP[RWDNKEUCPEVKQPQTRGPCNV[D[VJG 2QYGT)GPGTCVKQPCPF6TCPUOKUUKQP'SWKROGPVU TGNGXCPVTGIWNCVQT[DQFKGUFWTKPIVJGſPCPEKCN[GCT

'FWURGE*QNFKPIU$GTJCF (200401008252) 5 #PPWCN4GRQTV DIRECTORS’ PROFILE (cont’d)

PROF. DATO’ RAJA MUNIR SHAH BIN RAJA MUSTAPHA Male, Aged 58, Malaysian +PFGRGPFGPV0QP 'ZGEWVKXG&KTGEVQT

2TQH&CVQŏ4CLC/WPKTYCUCYCTFGF2KPICV,CUC/CU[CTCMCV ő2,/Œ  2KPICV ,CUC -GDCMVKCP ő2,-Œ  2KPICV -GNCMWCP 2TQH &CVQŏ 4CLC /WPKT 5JCJ $KP 4CLC /WUVCRJC YCU 6GTRWLK ő2-6Œ  CPF &CTLCJ ,QJCP 0GIGTK ő&,0Œ  D[ *KU CRRQKPVGF VQ VJG $QCTF QP  &GEGODGT  2TQH 'ZEGNNGPE[ 6;6 )QXGTQT QH 2GPCPI KP     &CVQŏ 4CLC /WPKT YCU TGFGUKIPCVGF CU %JCKTOCP QH VJG CPF  TGURGEVKXGN[ +P  2TQH &CVQŏ 4CLC /WPKT 4GOWPGTCVKQP %QOOKVVGG QP  #WIWUV  2TQH YCU CYCTFGF YKVJ 2KPICV 2CPIMWCP 0GICTC ő220Œ  D[ &CVQŏ4CLC/WPKTKUCNUQC/GODGTQHVJG#WFKVCPF4KUM &;//;CPI&K2GTVWCP#IQPI+P2TQH&CVQŏ4CLC /CPCIGOGPV%QOOKVVGGCPF0QOKPCVKQP%QOOKVVGG /WPKT YCU EQPHGTTGF VJG &CTLCJ +PFGTC /CJMQVC 2CJCPI ő&+/2Œ YJKEJECTTKGUVJGVKVNGő&CVQŒD[VJG&;//5WNVCP 2TQH&CVQŏ4CLC/WPKTITCFWCVGFYKVJC&KRNQOCKP$WUKPGUU QH2CJCPI2TQH&CVQŏ4CLC/WPKT5JCJYCUCRRQKPVGFCU /CPCIGOGPV CV 2GVGTDQTQWIJ 4GIKQPCN %QNNGIG 7PKVGF CP #FLWEV 2TQHGUUQT D[ 7PKXGTUKV[ 7VCTC /CNC[UKC 77/  -KPIFQO 5EJQQNQH%QORWVKPIKP0QXGODGTHQTJKUEQPVTKDWVKQP KPVJG+6+PFWUVT[ 2TQH &CVQŏ 4CLC /WPKT UVCTVGF JKU ECTGGT CU CP 1RGTCVKQP 'ZGEWVKXG KP 9CIQP 'PIKPGGTKPI 5FP $JF HTQO  VQ 2TQH&CVQŏ4CLC/WPKTJCUCVVGPFGFCNNVJGHQWT  $QCTFQH 2TQH&CVQŏ4CLC/WPKTTGUKIPGFKPVQLQKP$WOK &KTGEVQTUŏOGGVKPIUJGNFFWTKPIVJGſPCPEKCN[GCTGPFGF -GMCN$GMCN5FP$JFCU$TCPEJ/CPCIGTCPFUWDUGSWGPVN[ (GDTWCT[ NGHV KP  +P VJG EQWTUG QH JKU ECTGGT 2TQH &CVQŏ 4CLC /WPKT QDVCKPGF C &KRNQOC KP $WUKPGUU /CPCIGOGPV HTQO 2TQH&CVQŏ4CLC/WPKTEWTTGPVN[UGTXGUCUCDQCTFOGODGT 2GVGTDQTQWIJ 4GIKQPCN %QNNGIG 7PKVGF -KPIFQO CPF KP #UKC /GFKC )TQWR $GTJCF 2TQH &CVQŏ 4CLC /WPKT JCU VJGTGCHVGT UGTXGF CU C &KTGEVQT KP 52 /CLW 5FP $JF HTQO PQ HCOKN[ TGNCVKQPUJKR YKVJ CP[ QVJGT &KTGEVQT CPFQT  VQ  YJGTG 2TQH &CVQŏ 4CLC /WPKT QXGTUGGU VJG OCLQTUJCTGJQNFGTQHVJG%QORCP[CPFJKUFKTGEVQTUJKRKP DWUKPGUU QRGTCVKQP ſPCPEG CPF OCPCIGOGPV HWPEVKQPU QH VJG%QORCP[FQGUPQVIKXGTKUGVQCP[EQPƀKEVQHKPVGTGUV VJGUCKFEQORCP[ UKVWCVKQP2TQH&CVQŏ4CLC/WPKTJCUPQVDGGPEQPXKEVGFQH CP[QHHGPEGYKVJKPVJGRCUVſXG  [GCTU QVJGTVJCPVTCHſE 2TQH&CVQŏ4CLC/WPKTYCUCRRQKPVGFCUC%KV[%QWPEKNQTKP QHHGPEG KH CP[  PQT KORQUGF YKVJ CP[ RWDNKE UCPEVKQP QT CPF&WTKPIJKUVGPWTGCUC%QWPEKNQT RGPCNV[D[VJGTGNGXCPVTGIWNCVQT[DQFKGUFWTKPIVJGſPCPEKCN KP2GPCPI+UNCPF/WPKEKRCN%QWPEKN ő/222Œ 2TQH&CVQŏ [GCTGPFGF(GDTWCT[ 4CLC /WPKT UGTXGF CU %JCKTOCP CPF %QOOKVVGG /GODGT KPXCTKQWUUVCPFKPIEQOOKVVGGUQXGTUGGKPINGIKUNCVKXGUCPF RQNKE[OCVVGTUYKVJKPVJGLWTKUFKEVKQPQH/222

'FWURGE*QNFKPIU$GTJCF (200401008252) 6 #PPWCN4GRQTV DIRECTORS’ PROFILE (cont’d)

MR LIM THIAN LOONG Male,Ma Aged 57, MalaysianMa +PFGRGPFGPV0QP+PF 'ZGEWVKXG&KTGEVQT'ZG

/T.KO6JKCP.QQPIYCUCRRQKPVGFVQVJG$QCTFQP,WN[ /T .KO EWTTGPVN[ UKVU QP VJG $QCTF QH +EQPKE 9QTNFYKFG *GYCUCNUQCRRQKPVGFCUC/GODGTQHVJG#WFKVCPF $GTJCFCPF)TCPF%GPVTCN'PVGTRTKUGU$GTJCF*GJCUPQ 4KUM/CPCIGOGPV%QOOKVVGG0QOKPCVKQP%QOOKVVGGCPF HCOKN[ TGNCVKQPUJKR YKVJ CP[ QVJGT &KTGEVQT CPFQT OCLQT 4GOWPGTCVKQP%QOOKVVGGQP,WN[ UJCTGJQNFGT QH VJG %QORCP[ CPF JKU FKTGEVQTUJKR KP VJG %QORCP[ FQGU PQV IKXG TKUG VQ CP[ EQPƀKEV QH KPVGTGUV Mr Lim is an accountant by profession and graduated with UKVWCVKQP*GJCUPQVDGGPEQPXKEVGFQHCP[QHHGPEGYKVJKP The Chartered Institute of Management Accountants (CIMA) VJG RCUV ſXG   [GCTU QVJGT VJCP VTCHſE QHHGPEG KH CP[  HTQO.QPFQP*GKUCOGODGTQHVJG%+/#%JCTVGTGF)NQDCN PQT KORQUGF YKVJ CP[ RWDNKE UCPEVKQP QT RGPCNV[ D[ VJG /CPCIGOGPV #EEQWPVCPVU %)/#  /CNC[UKCP +PUVKVWVKQP TGNGXCPVTGIWNCVQT[DQFKGUFWTKPIVJGſPCPEKCN[GCTGPFGF of Accountants (MIA) and the Chartered Tax Institute of (GDTWCT[ /CNC[UKC %6+/ 

/T.KOJCUJKUQYPſTOCPFJCUDGGPRTCEVKEKPICUCUQNG RTCEVKVKQPGTUKPEG*GJCUQXGT[GCTUQHGZRGTKGPEG KPCEEQWPVKPICWFKVKPICPFVCZCVKQP

/T .KO JCU CVVGPFGF CNN VJG HQWT   $QCTF QH &KTGEVQTUŏ OGGVKPIUJGNFFWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[ 

'FWURGE*QNFKPIU$GTJCF (200401008252) 7 #PPWCN4GRQTV DIRECTORS’ PROFILE (cont’d)

MR SU KEONG SIONG Male, Aged 55, Malaysian +PFGRGPFGPV 0QP'ZGEWVKXG&KTGEVQT

/T5W-GQPI5KQPIYCUCRRQKPVGFVQVJG$QCTFQP/CTEJ KPCPFJCFUGTXGFCUVJG/GODGTQH2CTNKCOGPVHQT+RQJ  6KOQT 2GTCM HTQO  VQ  *G CNUQ YQP VJG -CORCT 2CTNKCOGPVCT[UGCVCPFKUEWTTGPVN[UGTXKPICUVJG/GODGTQH /T5WKUCNCY[GTD[RTQHGUUKQPCPFITCFWCVGFYKVJC&GITGG 2CTNKCOGPV HQT -CORCT 2GTCM *G KU C OGODGT QH VJG $QCTF KP .CY ..$ *QPU  HTQO 7PKXGTUKV[ QH 9QNXGTJCORVQP *G of Directors of Lembaga Kenaf Tembaga Negara (LKTN) from QDVCKPGFVJG%GTVKſECVGKP.GICN2TCEVKEG %.2 HTQO7PKXGTUKV[ VQ /CNC[CKPCPFCFOKVVGFVQVJG/CNC[UKCP$CTKP /T5WJCUCVVGPFGFCNNVJGHQWT  $QCTFQH&KTGEVQTUŏOGGVKPIU /T5WUVCTVGFJKUECTGGTYKVJ%-.GQPI%Q#FXQECVGU JGNFFWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[ 5QNKEKVQTUKP+RQJHTQOVQ*GKUEWTTGPVN[CVVCEJGF YKVJ/GUUTU,CUYCPV.QJ#FXQECVGU5QNKEKVQTUKP+RQJ /T5WJCUPQFKTGEVQTUJKRKPCP[QVJGTRWDNKENKUVGFEQORCP[ *GJCUPQHCOKN[TGNCVKQPUJKRYKVJCP[QVJGT&KTGEVQTCPFQT /T5WKUC/GODGTCPF%GPVTCN'ZGEWVKXG%QOOKVVGG/GODGT OCLQTUJCTGJQNFGTQHVJG%QORCP[CPFJKUFKTGEVQTUJKRKPVJG QH&GOQETCVKE#EVKQP2CTV[  CEQORQPGPVRCTV[QHVJG %QORCP[FQGUPQVIKXGTKUGVQCP[EQPƀKEVQHKPVGTGUVUKVWCVKQP 2CMCVCP *CTCRCP 2*  EQCNKVKQP UKPEG  *G YCU GNGEVGF *GJCUPQVDGGPEQPXKEVGFQHCP[QHHGPEGYKVJKPVJGRCUVſXG VQVJG2GTCM5VCVG#UUGODN[HQTVJGEQPUVKVWGPE[QH2CUKT2CPLK  [GCTU QVJGTVJCPVTCHſEQHHGPEGKHCP[ PQTKORQUGFYKVJ 2GTCM DGVYGGP  VQ  ſTUV VGTO  CPF  VQ  CP[RWDNKEUCPEVKQPQTRGPCNV[D[VJGTGNGXCPVTGIWNCVQT[DQFKGU UGEQPFVGTO *GYCUKPVJG2GTCM5VCVG'ZGEWVKXG%QOOKVVGG FWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[ Member (Exco) for Higher Education and Communications HTQOVQ*GYQPVJG+RQJ6KOQT2CTNKCOGPVCT[UGCV

'FWURGE*QNFKPIU$GTJCF (200401008252) 8 #PPWCN4GRQTV DIRECTORS’ PROFILE (cont’d)

MR CHANG LIH KANG Male,Ma Aged 41, MalaysianMa +PFGRGPFGPV+PF 0QP'ZGEWVKXG&KTGEVQT0Q

/T %JCPI .KJ -CPI YCU CRRQKPVGF VQ VJG $QCTF QP  /C[ /T %JCPI JCU CVVGPFGF CNN VJG HQWT   $QCTF QH &KTGEVQTUŏ  OGGVKPIU JGNF FWTKPI VJG ſPCPEKCN [GCT GPFGF  (GDTWCT[  /T%JCPIQDVCKPGFJKU$CEJGNQT&GITGGKP%KXKN'PIKPGGTKPIKP HTQO2WVTC7PKXGTUKV[QH/CNC[UKC 72/ CPFUWDUGSWGPVN[ /T %JCPI JCU PQ FKTGEVQTUJKR KP CP[ QVJGT RWDNKE NKUVGF C/CUVGTKP2WDNKE#FOKPKUVTCVKQPKPHTQOVJG0CVKQPCN EQORCP[*GJCUPQHCOKN[TGNCVKQPUJKRYKVJCP[QVJGT&KTGEVQT 7PKXGTUKV[QH5KPICRQTG CPFQTOCLQTUJCTGJQNFGTQHVJG%QORCP[CPFJKUFKTGEVQTUJKR KPVJG%QORCP[FQGUPQVIKXGTKUGVQCP[EQPƀKEVQHKPVGTGUV /T%JCPIKUEWTTGPVN[C/GODGTQH2CTNKCOGPVHQTVJG6CPLQPI UKVWCVKQP*GJCUPQVDGGPEQPXKEVGFQHCP[QHHGPEGYKVJKPVJG /CNKOHGFGTCNEQPUVKVWGPE[VJG5GETGVCT[QHVJG$CEMDGPEJGTU RCUVſXG  [GCTU QVJGTVJCPVTCHſEQHHGPEGKHCP[ PQTKORQUGF %QWPEKN CPF CNUQ VJG 2CTNKCOGPVCT[ 5GNGEV %QOOKVVGG KP YKVJCP[RWDNKEUCPEVKQPQTRGPCNV[D[VJGTGNGXCPVTGIWNCVQT[ &GHGPUGCPF*QOG#HHCKTU DQFKGUFWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[

/T %JCPI YCU VJG 2GTCM 5VCVG .GIKUNCVKXG #UUGODN[OCP HQT VYQVGTOUHTQOVQ*GYCUC/GODGTQHVJG2WDNKE #EEQWPVU %QOOKVVGG HTQO #WIWUV  VQ #RTKN  CPF C /GODGTQHVJG2TKXKNGIGU%QOOKVVGGHTQO#WIWUVVQ/C[ 

'FWURGE*QNFKPIU$GTJCF (200401008252) 9 #PPWCN4GRQTV DIRECTORS’ PROFILE (cont’d)

DATO’ LEE CHIN CHONG Male, Aged 50, Malaysian 'ZGEWVKXG&KTGEVQT

&CVQŏ.GG%JKP%JQPIYCUCRRQKPVGFVQVJG$QCTFQP/C[ $G[QPFVJGDWUKPGUUURJGTG&CVQŏ.GGKUCNUQCPCEVKXGOGODGT  QHVJG/CNC[UKC:KCPI.KCP;QWVJ#UUQEKCVKQP(WPFCEJCTKVCDNG GPVKV[FGFKECVGFVQ[QWVJGFWECVKQPCPFVJG/CNC[UKCP%JKPGUG &CVQŏ.GGJQNFUC$CEJGNQT&GITGGKP$WUKPGUU#FOKPKUVTCVKQP 6TCFGTU#UUQEKCVKQP URGEKCNKUKPI KP 1PNKPG $WUKPGUU /CPCIGOGPV CPF /CTMGVKPI HTQOVJG'WTQRGCP7PKXGTUKV[QH+TGNCPF+TGNCPFKP &CVQŏ .GG JCU CVVGPFGF CNN VJG HQWT   $QCTF QH &KTGEVQTUŏ OGGVKPIU JGNF FWTKPI VJG ſPCPEKCN [GCT GPFGF  (GDTWCT[ Dato’ Lee is the owner and director of Lee Trading Company  YKVJOQTGVJCP[GCTUQHYQTMKPIGZRGTKGPEGKPVTCFKPI6JG CEJKGXGOGPVU QH &CVQŏ .GG KPENWFGU UGEWTKPI FKUVTKDWVQTUJKR &CVQŏ .GG JCU PQ FKTGEVQTUJKR KP CP[ QVJGT RWDNKE NKUVGF YKVJ'UUQCPF5JGNNHQTNWDTKECPVRTQFWEVU.GG6TCFKPI%QORCP[ EQORCP[&CVQŏ.GGJCUPQHCOKN[TGNCVKQPUJKRYKVJCP[QVJGT KUCNUQVJGFKUVTKDWVQTQHYKTGTQFUHQT5QWVJGTP5VGGN$GTJCF &KTGEVQT CPFQT OCLQT UJCTGJQNFGT QH VJG %QORCP[ CPF JKU FKTGEVQTUJKRKPVJG%QORCP[FQGUPQVIKXGTKUGVQCP[EQPƀKEV Dato’ Lee was the Managing Director for Meng Chew Hin Teow QHKPVGTGUVUKVWCVKQP&CVQŏ.GGJCUPQVDGGPEQPXKEVGFQHCP[ %JGY5GCHQQFCPF*QVRQV4GUVCWTCPVDGVYGGPVQ QHHGPEGYKVJKPVJGRCUVſXG  [GCTU QVJGTVJCPVTCHſEQHHGPEG &CVQŏ.GGJCUUKIPKſECPVRTQLGEVOCPCIGOGPVGZRGTKGPEGCPF KHCP[ PQTKORQUGFYKVJCP[RWDNKEUCPEVKQPQTRGPCNV[D[VJG KUCPGZRGTVKUGKPDWUKPGUUFGXGNQROGPVPGIQVKCVKQPOCTMGVKPI TGNGXCPVTGIWNCVQT[DQFKGUFWTKPIVJGſPCPEKCN[GCTGPFGF CPF RQUUGUUGU IQQF OCPCIGOGPV UMKNNU KP OGGVKPI EQORCP[ (GDTWCT[ IQCNU

'FWURGE*QNFKPIU$GTJCF (200401008252) 10 #PPWCN4GRQTV KEY PERSONNEL PROFILE

CHEWCH GEAN FEUN Female,Fem Aged 52, MalaysianMa %JKGH(KPCPEKCN1HſEGT%J

/U %JGY )GCP (GWP YCU CRRQKPVGF CU VJG %JKGH (KPCPEKCN 5JG KU CNUQ TGURQPUKDNG HQT UVTCVGIKE RNCPPKPI DWFIGVKPI CPF 1HſEGT QH 'FWURGE )TQWR QH %QORCPKGU QP  5GRVGODGT TKUM OCPCIGOGPV VCZ RNCPPKPI CPF SWCTVGTN[ TGRQTVU VQ VJG 5JGKUCOGODGTQHVJG/CNC[UKC+PUVKVWVGQH#EEQWPVCPVU $QCTFCPFVQVJG#WFKVCPF4KUM/CPCIGOGPV%QOOKVVGG2TKQT ő/+#Œ  CPF KU CNUQ C HGNNQY OGODGT QH VJG #UUQEKCVKQP QH VQLQKPKPI'FWURGE)TQWRKPCUVJG(KPCPEKCN%QPVTQNNGT %JCTVGTGF%GTVKſGF#EEQWPVCPVU ő#%%#Œ  *GCF QH *4  #FOKP /U %JGY JCU GZVGPUKXG GZRGTKGPEG QH OQTG VJCP  [GCTU KP UGPKQTNGXGN ſPCPEG RQUKVKQPU YKVJ /U%JGYKUTGURQPUKDNGHQTCNNſPCPEKCNCPFſUECNOCPCIGOGPV XCUV GZRQUWTGKPOCPCIKPI CEEQWPVKPI CPF UVTCVGIKE ſ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ſPCPEKCNCPFTGIWNCVQT[CWFKVUCUYGNNCUCNNKPVGTPCNCPF %QORCP[FQGUPQVIKXGTKUGVQCP[EQPƀKEVQHKPVGTGUVUKVWCVKQP QRGTCVKQPCNCWFKVUHQTVJG)TQWR 5JGJCUPQVDGGPEQPXKEVGFQHCP[QHHGPEGYKVJKPVJGRCUVſXG  [GCTU QVJGTVJCPVTCHſEQHHGPEGKHCP[ PQTKORQUGFYKVJ CP[RWDNKEUCPEVKQPQTRGPCNV[D[VJGTGNGXCPVTGIWNCVQT[DQFKGU FWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[

'FWURGE*QNFKPIU$GTJCF (200401008252) 11 #PPWCN4GRQTV CEO & MANAGEMENT DISCUSSION AND ANALYSIS STATEMENT

DEAR VALUED SHAREHOLDERS,

+CORNGCUGFVQRTGUGPVVJGFGVCKNUQHVJG ſPCPEKCNCPFQRGTCVKQPCNRGTHQTOCPEGQH 'FWURGE*QNFKPIU$JF ő'FWURGEŒQTVJG ő)TQWRŒ HQTVJGſPCPEKCN[GCTGPFGF (GDTWCT[ ő(;'Œ 

1. GROUP BUSINESS AND OPERATIONS REVIEW 5KPEGVJG)TQWRJCUDGGPCVVJGHQTGHTQPVKPRTQXKFKPI Group Structure KPVGITCVGF GFWECVKQP UGTXKEGU KPXQNXKPI KPPQXCVKQP CPF GFWECVKQPVGEJPQNQI[HQTUEJQQNU

1WT JQNKUVKE UGTXKEGU TCPIG HTQO RTQXKFKPI EQPUWNVCPE[ DWKNFKPIVGCEJKPIECRCEKV[CPFFGRNQ[KPI+6U[UVGOUKPUEJQQNU VQ QHHGTKPI XCTKQWU QPNKPG CPF DNGPFGFNGCTPKPI GFWECVKQP RTQITCOU

1WT RTQITCOU NGXGTCIG QP VJG NCVGUV TGNGXCPV GFWECVKQP VGEJPQNQI[ HQT UEJQQNU CPF OCMG GFWECVKQP VGEJPQNQI[ CHHQTFCDNG CPF VJKU YKNN VTCPUNCVG KPVQ GHHGEVKXG VGCEJKPI CPF CNUQRTQLGEVDCUGFNGCTPKPI

*GPEGYGCTGCDNGVQRTQXKFGCRNCVHQTOHQTGZRGTKGPEGCPF MPQYNGFIGUJCTKPICOQPIUEJQQNUKP#5'#0

9G DGNKGXG VJCV DWKNFKPI C PGVYQTM DGVYGGP UEJQQNU YKNN encourage innovation and provide a sense of community and UWRRQTV

#UKFGHTQOYQTMKPIYKVJUEJQQNUQWTWPKSWGDWUKPGUUOQFGN CNUQ KPENWFGU GORQYGTKPI RCTGPVU KP UEJQQN GFWECVKQP VQ GPUWTGCUWEEGUUHWNGFWECVKQPOQFGN

Core Business of the Group 6JG NCUV QPG [GCT 'FWURGE JCU FGXGNQRGF PGY RTQFWEVU CPF UQNWVKQPU VJCV CTG QHHGTGF FKTGEVN[ VQ WUGTU QWVUKFG VJG UEJQQN 'FWURGEKUCRWDNKEEQORCP[NKUVGFQPVJG#%'/CTMGVQH$WTUC U[UVGOCPFHQTNGCTPGTUCVJQOG6JGPGY$%KPKVKCVKXGKUC /CNC[UKC5GEWTKVKGU$GTJCF ő$WTUC5GEWTKVKGUŒ  EQTGGZRCPUKQPQHVJG%QORCP[ŏUDWUKPGUUKPHWVWTG

1WT EQTG DWUKPGUU KU VQ FGXGNQR CPF RTQXKFG GFWECVKQP $[ RWVVKPI CNN VJGUG KP RNCEG CPF NGXGTCIKPI UWEEGUUHWNN[ VGEJPQNQI[RTQFWEVUCPFUGTXKEGU QP VGEJPQNQI[ YG JCXG GOGTIGF CU VJG PWODGT QPG - MKPFGTICTVGP VQ [GCT QH UEJQQN GFWECVKQP  +6 GFWECVKQP RTQXKFGTKP#UKC

'FWURGE*QNFKPIU$GTJCF (200401008252) 12 #PPWCN4GRQTV CEO & MANAGEMENT DISCUSSION AND ANALYSIS STATEMENT (cont’d)

#PQVJGT QH VJG )TQWRŏU RNCPU WPFGT VJG $% OQFGN KU VJG 2. ANALYSIS OF FINANCIAL RESULTS AND FINANCIAL FGXGNQROGPV CPF QRGTCVKQP QH VJG 56'/ 'FW2CTM KP 2QTV CONDITION &KEMUQPYJKEJCKOUCVETGCVKPICVJGOGRCTMNKMGGZRGTKGPEG YJKNG KPVTQFWEKPI 56'/DCUGF GFWECVKQP VQ VJG RWDNKE 6JKU 6JG)TQWRŏUTGXGPWGKUOCKPN[HTQOVJGRTQXKUKQPQH2TQITCOU RCTMKUVCTIGVVQUVCTVQRGTCVKQPUUQOGVKOGKPUV3VT &KIKVCN5EJQQN5QNWVKQPU &55 'FWVCKPOGPV6JGOG2CTMCPF +PVGITCVGF'FWECVKQP5QNWVKQPU5GTXKEGU +'55 VQUEJQQNU Eduspec Services for Parents (ESP)

Programs 6JG '52 OQFGN CKOU VQ HQUVGT VJG KPXQNXGOGPV QH RCTGPVU KP empowering them with accurate information regarding their IT Learning and Robotics Program EJKNFTGPŏU GFWECVKQP $[ WUKPI VJG %WDG OQDKNG CRRNKECVKQP 5KPEGYGJCXGDGGPRTQXKFKPI5[UVGOCVKE+6NGCTPKPICPF CUCEQOOWPKECVKQPRNCVHQTORCTGPVUECPTGXKGYVJGEJKNFTGPŏU 4QDQVKEU RTQITCOU VQ EJKNFTGP KP MKPFGTICTVGPU CPF RTKOCT[ RTQITGUU CPF OCMG WUG QH VJG XCTKQWU UWRRNGOGPVCT[ IWKFGU UEJQQNRWRKNU6JGRTQITCOUCTGFTCYPWRD[CITQWRQHVGCEJGTU VQGPCDNGVJGOCEJKGXGVJGKTQDLGEVKXGU6JGOQDKNG#RRYKNN CEEQTFKPIVQUVWFGPVUŏCIGU6JG[KPENWFGE[DGTYGNNPGUUCPF KPENWFGHWPEVKQPUUWEJCUCPCPPQWPEGOGPVU[UVGO'YCNNGV VJTGGOCKPEQORQPGPVUPCOGN[)GPGTCN-PQYNGFIG5QHVYCTG CPCN[VKEUCVVGPFCPEGNGUUQPRNCPUCUUGUUOGPVTGUWNVUCPFQVJGT #RRNKECVKQPCPF1PNKPG#RRNKECVKQP9GJCXGKORTQXGFVJGUG XCNWCDNGHGCVWTGU RTQITCOUCPFPQYEQNNGEVKXGN[RWVVJGOWPFGTVJGECVGIQT[QH 56'/'FWECVKQP Analysis 'XGT[ UGIOGPV QH QWT UEJQQN DWUKPGUUGU CTG ITGCVN[ CHHGEVGF STEM Computer Science and STEM Robotics FWG VQ UEJQQN ENQUWTGU FWTKPI VJG RCPFGOKE (QT (;'  56'/YKVJ%QORWVGT5EKGPEGKUOQTGVJCPLWUVNGCTPKPIJQY YGTGRQTVGFCNQUUCHVGTVCZQH4/OKNNKQPQPVJGDCEMQH VQRTQITCO+VKUCNUQCDQWVNGCTPKPIJQYVQUWEEGGFKPCJKIJ 4/ OKNNKQP KP VWTPQXGT 6JG OCKP TGCUQP YCU UKIPKſ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igital School Solutions (DSS) VQICKPQPFKURQUCNQHUWDUKFKCT[CPFICKPQPFGGOGFEQUVQH 6JG XKUKQP QH VJG &KIKVCN 5EJQQN 5QNWVKQPU KU VQ FKIKVCNK\G C KPXGUVOGPV KP CUUQEKCVGU YJKEJ COQWPVKPI VQ 4/OKNNKQP UEJQQNŏUNGCTPKPICPFOCPCIGOGPVU[UVGOVQGSWKRUVWFGPVUYKVJ JCUDGGPTGEQIPKUGF6JGFGETGCUGKPQVJGTKPEQOGKURCTVKCNN[ UVEGPVWT[EQORGVGPEKGUCPFUMKNNUGVU6JKUKUCUVTQPIITQYVJ mitigated by savings obtained from the waiver for the bank CTGC CU &55 GSWKRU UVWFGPVU YKVJ UV EGPVWT[ EQORGVGPEKGU QWVUVCPFKPI HTQO #-++/ 5FP $JF ő#5$Œ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ſPCNUGVVNGOGPV CTGPQYENQWFDCUGFYKVJOCP[OQTGPGYHGCVWTGUEQPPGEVKPI QHVJG(CEKNKV[VQDG75&OKNNKQPYJKEJYGUGVVNGFQP UVWFGPVUVGCEJGTUCPFRCTGPVUWPFGTQPGGEQU[UVGO 0QXGODGT6JKUJCUTGUWNVGFKP4/OKNNKQPUCXKPIU DGKPITGEQIPKUGFKPVJGEWTTGPVſPCPEKCN[GCT 5T3M Edutainment Business 6JGCFOKPKUVTCVKXGGZRGPUGUKPETGCUGFVQ4/OKNNKQPHTQO 6JG XGPVWTG KPVQ VJG GFWVCKPOGPV VJGOG RCTM DWUKPGUU YKNN 4/OKNNKQPTGRQTVGFKPVJGRTGXKQWUEQTTGURQPFKPI[GCTKU serve to diversify the Group’s revenue and earnings stream OCKPN[FWGVQKORCKTOGPVNQUUGUQPIQQFYKNNQH4/OKNNKQP and is expected to provide a new earnings driver to reduce CPFKPVCPIKDNGCUUGVUYTKVVGPQHHQH4/OKNNKQPCFLWUVGFKP VJG TGNKCPEG QP KVU GZKUVKPI EWUVQOGT DCUG 7PFGT VJKU $% VJGEWTTGPVſPCPEKCN[GCT(WTVJGTOQTGVJGKPETGCUGCNUQFWG OQFGNVJG)TQWRYKNNFGNKXGT56'/DCUGFGFWECVKQPFKTGEVN[VQ VQJKIJGTRTQHGUUKQPCNHGGUKPEWTTGFTGNCVGFVQVJGUWDUETKRVKQP UVWFGPVUXKCVJGKTRCTGPVUCUVJGEWUVQOGTU6JKUYKNNGHHGEVKXGN[ CPFEQPXGTUKQPQH4%25*QYGXGTVJGKPETGCUGEWUJKQPGFD[ YKFGP VJG )TQWRŏU VCTIGV OCTMGVU VQ RWDNKE CV NCTIG CPF PQV COQPIUVQVJGTUFGETGCUGKPJWOCPTGUQWTEGUEQUVUCPFHQTGKIP EQPſPGFVQUEJQQNUQTQVJGTGFWECVKQPCNKPUVKVWVKQPUQPN[ GZEJCPIGNQUUGU 6/5VGO$CUGF'FWVCKPOGPV%GPVTGCPF#ECFGO[CV5VCTNKPI YJKEJ/CNNYJKEJQRGPHQTDWUKPGUUKPGCTN[KUCYQTNF 6JGUGNNKPICPFFKUVTKDWVKQPGZRGPUGUKPETGCUGFVQ4/OKNNKQP QHKOCIKPCVKQPVJCVKPURKTGUCNQXGHQTTQDQVKEUEQFKPICTVKſEKCN HTQO 4/ OKNNKQP TGRQTVGF KP VJG RTGXKQWU EQTTGURQPFKPI KPVGNNKIGPEG  KPVGTPGV QH VJKPIU UEKGPEGU CPF GPVGTVCKPOGPV [GCT6JGFKHHGTGPEGUCTGOCKPN[FWGVQEQODKPCVKQPQHKPETGCUG VGEJPQNQI[ KP YKVJJQNFKPI VCZ GZRGPUGU CPF FGETGCUG QH RTQOQVKQPCN GZRGPUGU6JGKPETGCUGKPYKVJJQNFKPIVCZGZRGPUGUKUFWGVQ QPGQHHYKVJJQNFKPIVCZGZRGPUGUQH4/OKNNKQPCFLWUVGF KPEWTTGPVſPCPEKCN[GCT

'FWURGE*QNFKPIU$GTJCF (200401008252) 13 #PPWCN4GRQTV CEO & MANAGEMENT DISCUSSION AND ANALYSIS STATEMENT (cont’d)

Analysis (cont’d) ii) Proposed amendments to the Constitution of the 6JG PGV KORCKTOGPV NQUUGU QP ſPCPEKCN CUUGVU FGETGCUGF VQ %QORCP[ VQ HCEKNKVCVG VJG KORNGOGPVCVKQP QH VJG 4/OKNNKQPHTQO4/OKNNKQPTGRQTVGFKPVJGRTGXKQWU RTQRQUGFITCPVKPIQHCWVJQTKV[VQVJG$QCTFVQKUUWG EQTTGURQPFKPI [GCT KU OCKPN[ FWG VQ JKIJGT KORCKTOGPV NQUU CPFCNNQV'FWURGE5JCTGURWTUWCPVVQ5GEVKQPUCPF QPQVJGTTGEGKXCDNGUQH4/OKNNKQPKPTGURGEVQHCOQWPV  QH VJG #EV QH WR VQ  QH VJG VQVCN PWODGT QH FWG HTQO C HQTOGT UWDUKFKCT[ 26 'FWURGE +PFQPGUKC CU VJG KUUWGF5JCTGU EQNNGEVCDKNKV[QHVJGNQPIQXGTFWGCOQWPVKUWPEGTVCKPKPXKGY of market and economic uncertainties due to the COVID-19  #EEQTFKPIN[VJG2TQRQUGF8CTKCVKQPJCUDGEQOGGHHGEVKXG RCPFGOKEFWTKPIVJG(;'(GDTWCT[ HTQO,CPWCT[

6JGQVJGTGZRGPUGUFGETGCUGFVQ4/OKNNKQPHTQO4/   1P/CTEJVJG%QORCP[RTQRQUGUVQWPFGTVCMG OKNNKQPTGRQTVGFKPVJGRTGXKQWUEQTTGURQPFKPI[GCTKUOCKPN[ CRTKXCVGRNCEGOGPVQHWRVQPGYQTFKPCT[ FWGVQJKIJGTKORCKTOGPVNQUUQPQVJGTKPXGUVOGPVQH4/ UJCTGUKP'FWURGETGRTGUGPVKPIWRVQCRRTQZKOCVGN[ OKNNKQPFWTKPIVJG(;'(GDTWCT[ QHVJGGPNCTIGFVQVCNPWODGTQHKUUWGF'FWURGE5JCTGU

6JGſPCPEGEQUVUFGETGCUGFVQ4/OKNNKQPHTQO4/   1P  /C[  VJG %QORCP[ GPVGTGF KPVQ C OKNNKQPTGRQTVGFKPVJGRTGXKQWUEQTTGURQPFKPI[GCTKUOCKPN[ Memorandum of Understanding with Get Success Sdn FWG VQ VJG TGFWEVKQP KP WVKNKUCVKQP QH VGTO NQCP CPF VTCFG $JFVQLQKPVN[YQTMQWVCEQOOGTEKCNCPFDWUKPGUUOQFGN HCEKNKVKGUHQTVJGDWUKPGUU HQT ETGCVKQP QH '5RQTVU #ECFGO[ KP /CNC[UKC HQNNQYKPI VJGOQFGNQH'#5RQTVU#ECFGO[KPQXGTUGCUYKVJTGNGXCPV $TGCMFQYPQHTGXGPWGD[IGQITCRJKECNCTGCU 4/ŏ EGTVKſECVKQP HTQO TGEQIPKUGF GFWECVKQP KPUVKVWVKQPU CPF QTICPK\CVKQPU /CNC[UKC    1P/C[VJG%QORCP[GPVGTGFKPVQCP#ITGGOGPV Singapore 357 YKVJ/T.GG9GG6GTMVQCESWKTGQTFKPCT[UJCTGUKP Hong Kong - )GV5WEEGUU5FP$JFTGRTGUGPVKPIQHVJGKUUWGFUJCTG 6JCKNCPF  ECRKVCNQH)GV5WEEGUUHQTCEQPUKFGTCVKQPQH4/ 7RQP EQORNGVKQP QH VJG 2TQRQUGF #ESWKUKVKQP VJG 9,241 %QORCP[ UJCNN JQNF  GSWKV[ KPVGTGUV KP )GV 5WEEGUU 5FP$JF 3. CORPORATE DEVELOPMENT 4. REVIEW OF OPERATIONS

  1P  ,WN[  VJG %QORCP[ RTQRQUGU VQ WPFGTVCMG C 6JGDWUKPGUUQRGTCVKPIGPXKTQPOGPVYCUJKIJN[WPHCXQWTCDNG RTQRQUGF EQPUQNKFCVKQP QH GXGT[  GZKUVKPI QTFKPCT[ HQTVJGYJQNG(;'FWGVQVJG%QXKFRCPFGOKE#NNQWT UJCTGUKP'FWURGEKPVQ'FWURGE5JCTG6JG'FWURGEŏU UEJQQNU DWUKPGUU YGTG DCFN[ CHHGEVGF FWG VQ UEJQQNU ENQUWTG GZKUVKPI PWODGT QH  'FWURGE 5JCTGU YKNN &WTKPIVJKURGTKQFYGJCXGGODCTMGFQPXCTKQWUTGUVTWEVWTKPI DGEQPUQNKFCVGFKPVQ%QPUQNKFCVGF5JCTGU exercises to strengthen the company’s operation for post RWTUWCPV VQ VJG 5JCTG %QPUQNKFCVKQP %QPUGSWGPVN[ RCPFGOKE9GCTGCNUQINCFVJCVVJGOKPKUVT[QHGFWECVKQPJCU RWTUWCPVVQVJGRTQXKUKQPUQHVJG&GGF2QNN$VJGGZKUVKPI ſPCNN[CNNQYGFVJGTGUWORVKQPQH+6NGCTPKPIRTQITCOU 56'/  PWODGTQH9CTTCPVU$YKNNDGCFLWUVGFKPVQ VQ DG TGKPVTQFWEGF VQ UEJQQNU 9G UVTQPIN[ DGNKGXG VJCV VJG %QPUQNKFCVGF9CTTCPVU$6JG%QPUQNKFCVGF DWUKPGUUHQTVJKUFKXKUKQPWPFGTRTQITCOUYKNNPQVQPN[TGUWOG 5JCTGU CPF %QPUQNKFCVGF 9CTTCPVU $ YKNN DG NKUVGF CPF VQKVURTGTGXGPWGDWVYKNNCNUQKPETGCUGUWDUVCPVKCNN[RQUV SWQVGFYKVJGHHGEVHTQOCOQP#WIWUV RCPFGOKE   1P  &GEGODGT  VJG %QORCP[ CPF VJG 4%25 Eduspec has continued to seek new business opportunities 5WDUETKDGT GPVGTGF KPVQ C TF UWRRNGOGPVCN UWDUETKRVKQP TGNCVKPI VQ GFWECVKQP CPF JCU KPXGUVGF KP GFWVCKPOGPV CPF CITGGOGPV VQ COGPF OQFKH[ UWDUVKVWVG XCT[ CPF CNVGT GURQTVUDWUKPGUUVJCVTGXQNXGUQWVUKFGQHVJGUEJQQNGEQU[UVGO VJG VGTOU EQPFKVKQPU CPF RTQXKUKQPU QH VJG UWDUETKRVKQP CPF UVCTVGF DWKNFKPI C PGY TCPIG QH RTQFWEVU CPF UQNWVKQPU agreement dated 31 May 2019 entered into between QHHGTGFFKTGEVN[VQRCTGPVUCPFEJKNFTGPCVJQOG9GEQPVKPWG VJG%QORCP[CPFVJG4%255WDUETKDGTKPTGNCVKQPVQVJG VQKPXGUVJGCXKN[KPKVU4&VQKORTQXGGZKUVKPIRTQFWEVUCPF +UUWCPEGQH4%25(WTVJGTVQVJGCDQXGVJG%QORCP[JCF UGTXKEGU CU YGNN CU KPVTQFWEKPI PGY KPPQXCVKXG RTQFWEVU CPF CNUQRTQRQUGFVQWPFGTVCMGVJGHQNNQYKPI UGTXKEGUVQRWDNKEUEJQQNURTKXCVGUEJQQNUNGCTPKPIEGPVTGUCPF JQOGVQDGFGNKXGTGFGKVJGTVTCFKVKQPCNN[QHƀKPGQTQPNKPG (i) Proposed amendments to the Constitution of the %QORCP[ VQ HCEKNKVCVG VJG KORNGOGPVCVKQP QH VJG 6JGEQNNCDQTCVKQPYKVJ/CVNCOCV9CYCUCP5FP$JFKUQPIQKPI proposed variation; and CPFYGJCXGUWEEGUUHWNN[RKNQVGFQWT56'/RTQITCOUKPCEQWRNG QH -GDCPIUCCP 5EJQQNU 6JG EQOOGTEKCN KORNGOGPVCVKQP ECP QPN[UVCTVRQUVRCPFGOKE

'FWURGE*QNFKPIU$GTJCF (200401008252) 14 #PPWCN4GRQTV CEO & MANAGEMENT DISCUSSION AND ANALYSIS STATEMENT (cont’d)

6JGXGPVWTGKPVQVJG$%DWUKPGUUOQFGNYKNNUGTXGVQFKXGTUKH[ 5. SIGNIFICANT FACTORS AND TRENDS AFFECTING the Group’s revenue and earnings stream and is expected to OUR FINANCIAL POSITION AND RESULTS OF RTQXKFG C PGY GCTPKPIU FTKXGT VQ TGFWEG VJG TGNKCPEG QP KVU OPERATIONS GZKUVKPIEWUVQOGTDCUG6JKURTQITGUUKQPKUETWEKCNCU'FWURGE UVGRU WR KVU HQTC[ KPVQ VJKU ITQYKPI CTGC VJCV YKNN RTQXKFG 6JG GFWECVKQP UGEVQT TGOCKPU EQORGVKVKXG 6JG $QCTF YKNN TGEWTTKPIKPEQOGVQVJG)TQWR JQYGXGTEQPVKPWGYKVJKVUGHHQTVUVQUWUVCKPCPFKORTQXGVJG performance of the Group by focusing on its strengths and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ŏUGZRGTVKUGVQCEJKGXGVJKUIQCN 9GUGGCDKIRQVGPVKCNKPVJKURQUVRCPFGOKEGURGEKCNN[PQYVJCV 6JG)TQWRKFGPVKſGUVJKUVQDGCPQRRQTVWPKV[VQGZRCPFHWTVJGT VJGIQXGTPOGPVKUFQKPICYC[YKVJVJGQNFCECFGOKEEGPVTKE YKVJKVU56'/RTQITCOOGCPF'52 UVCPFCTFKUGFGZCO

6JG0QXGN%QTQPCXKTWU ő%QXKFŒ JCUCHHGEVGFQWTQRGTCVKQPU 6. FUTURE PLANS & PROSPECTS CU C TGUWNV QH VJG OQXGOGPV EQPVTQN QTFGT ő/%1Œ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ſFGPVVJCV KPXCNWCDNGVQQWTDWUKPGUUGZRCPUKQPHQTQWTQXGTUGCUCUUQEKCVGU VJKU PGY $% OQFGN YKNN DG C UKIPKſECPV EQPVTKDWVQT VQ VJG EQORCPKGUQPEGVJGRCPFGOKEKUQXGT ITQWRTGXGPWGKPHWVWTG+PNKPGYKVJVJKUYGJCXGFGXGNQRGF UQNWVKQPUCPFDWUKPGUUOQFGNUWEJCU'6WVQTKPIWPFGT6/ CPFKPXGUVGFKPOQTGOCVWTGDWUKPGUUOQFGNNKMGVJGOGRCTM YKVJGFWECVKQPGNGOGPVU CPFGURQTVU

'FWURGE*QNFKPIU$GTJCF (200401008252) 15 #PPWCN4GRQTV SUSTAINABILITY STATEMENT

5WUVCKPCDKNKV[ JCU CNYC[U DGGP CP KPVGITCN RCTV QH QWT YC[ Code of Conduct QH FQKPI DWUKPGUU CPF C IWKFKPI RTKPEKRNG KP QWT FGEKUKQP OCMKPICPFFGXGNQROGPVRTQEGUUGU1XGTVJG[GCTU'FWURGE 'FWURGECUCRWDNKENKUVGFEQORCP[NKUVGFCVVJG#%'/CTMGV JCU WPFGTVCMGP XCTKQWU GHHQTVU VQ KORTQXG QWT GPXKTQPOGPVCN QH $WTUC /CNC[UKC 5GEWTKVKGU $GTJCF CRCTV HTQO VJG .KUVKPI KPKVKCVKXGU 1WT EQOOWPKV[ RTQITCOOGU JCXG KORTQXGF VJG 4GSWKTGOGPVUQH$WTUC/CNC[UKC/CNC[UKCP%QFGQP%QTRQTCVG NKXGNKJQQFU QH VJG WPFGTRTKXKNGIGF YJGTGXGT YG QRGTCVG )QXGTPCPEG VJG %QORCPKGU #EV  CPF QVJGT TWNGU CPF #EEQORNKUJOGPVUQEEWTTGFKPCNNCTGCUUWUVCKPCDNGRTQFWEVKQP TGIWNCVKQPU HTQO /CNC[UKC TGIWNCVQT[ DQFKGU VJG )TQWR JCU UQEKCNCEEQWPVCDKNKV[CPFUQWPFGPXKTQPOGPVCNOCPCIGOGPV UGVHQTVJVJG%QFGQH%QPFWEVHQTCNNFKTGEVQTUCPFGORNQ[GGU DGNQPIKPIVQVJG)TQWRVQQDUGTXGCPFTGHGTVQHQTRTQRGTCPF 6JKU 5WUVCKPCDKNKV[ 5VCVGOGPV YKNN QWVNKPG QWT GHHQTVU CV GVJKECN DGJCXKQWT 1WT GORNQ[GG %QFG QH %QPFWEV ENGCTN[ GODGFFKPI UWUVCKPCDKNKV[ VJTQWIJQWV VJG )TQWR KP VJG RTQXKFGUIWKFCPEGCPFUGVEQOOQPGVJKECNUVCPFCTFUVQRTQOQVG GEQPQOKE GPXKTQPOGPVCN CPF UQEKCN URJGTGU KPENWFKPI QWT EQPUKUVGPE[KPDGJCXKQWTCETQUUCNNNGXGNUQHGORNQ[OGPV GHHQTVUCVKORTQXKPIQWTRTCEVKEGU Whistle Blowing Policy 6Q HWTVJGT GNCDQTCVG 'FWURGE UWUVCKPCDKNKV[ GPFGCXQWT CPF EQOOKVOGPV VJKU 5WUVCKPCDKNKV[ 5VCVGOGPV KU UVTWEVWTGF KPVQ 'FWURGE JCU GUVCDNKUJGF CPF KU EQOOKVVGF VQ C RQNKE[ QH HQWTUGEVKQPU6JGſTUVUGEVKQPUGVUQWVVJG)TQWRŏUIQXGTPCPEG GZGORNCT[EQTRQTCVGRTCEVKEG#URCTVQHVJKURQNKE[KVGZRGEVU UVTWEVWTGKPOCPCIKPIVJGOCVGTKCNUWUVCKPCDKNKV[OCVVGTUYJKNGVJG KVUOCPCIGOGPVQHſEGTUCPFGORNQ[GGUVQOCKPVCKPVJGJKIJGUV second section records the processes that we have undertaken NGXGNUQHKPVGITKV[CPFVTCPURCTGPE[KPVJGKTFGCNKPIUQPDGJCNHQH VQ KFGPVKH[ CPF RTKQTKVKUG VJG GPXKTQPOGPVCN OCVVGTU YJGP KV VJGEQORCP[CPFVJGKTOCPCIGOGPVQHVJGEQORCP[ŏUDWUKPGUU EQOGU VQ VJG )TQWRŏU DWUKPGUU FGEKUKQPOCMKPI 6JG VJKTF 6JKU KPENWFGU UVTKEV EQORNKCPEG YKVJ VJG EQORCPKGUŏ EQFG QH section reports on the Group’s practices and performance in GVJKEUCPFCNNNCYUCPFTGIWNCVKQPUCRRNKECDNGVQVJGDWUKPGUUGU OCPCIKPIVJG)TQWRŏUOCVVGTU.CUVN[VJGHQWTVJUGEVKQPQWVNKPG QHVJG)TQWR6JKU9JKUVNGDNQYKPI2QNKE[ őVJKU2QNKE[Œ HQTOU 'FWURGETGURQPUKDKNKVKGUVQVJG)TQWRŏUUJCTGJQNFGTUEWUVQOGTU CPKPVGITCNRCTVQHVJG)TQWRŏUEQOOKVOGPVVQYCTFURTQXKFKPIC CPFGORNQ[GGUKPVJGKORCEVQHVJG)TQWRUQRGTCVKQPU UCHGCPFGVJKECNYQTMGPXKTQPOGPVCPFOGGVKPIKVUQDNKICVKQPU VQKVUUVCMGJQNFGTUVJGTGNGXCPVCWVJQTKVKGUVJGEQOOWPKV[CPF VJG GPXKTQPOGPV CPF VQ GPEQWTCIG VJGO VQ RNC[ VJGKT RCTV KP A. GOVERNANCE SUSTAINABILITY KORTQXKPIVJGQXGTCNNGHHGEVKXGPGUUCPFUWEEGUUQHVJG)TQWR $[ ETGCVKPI CP CVOQURJGTG QH QRGPPGUU CPF VTWUV VJG )TQWR YKUJGU VQ GPUWTG VJCV VJG )TQWR CU C YJQNG KU KPVGTGUVGF KP 1WT IQXGTPCPEG QH UWUVCKPCDKNKV[ EQOGU HTQO VJG VQR QH QWT GTCFKECVKPI WPGVJKECN CPF KNNGICN RTCEVKEGU YJKEJ RTGXKQWUN[ QTICPKUCVKQP6JG$QCTFJCUVJGWNVKOCVGTGURQPUKDKNKV[VQGPUWTG OC[JCXGDGGPIQKPIQPWPPQVKEGF UWUVCKPCDKNKV[ KU VCMGP KPVQ CEEQWPV YJGP UGVVKPI VJG UVTCVGIKE FKTGEVKQP QH VJG EQORCP[ +V KU EQORQUGF QH VJG HQNNQYKPI Risk Management and Internal Control Framework KPFKXKFWCNU 6JG $QCTF CHſTOU KVU QXGTCNN TGURQPUKDKNKV[ HQT OCKPVCKPKPI C U[UVGOQHTKUMOCPCIGOGPVCPFKPVGTPCNEQPVTQNUVQUCHGIWCTF The Management Executive The Board of Team Director Directors UJCTGJQNFGTUŏ KPXGUVOGPVU CPF VJG )TQWRŏU CUUGVU 6JG $QCTF EQPſTOU VJCV VJGTG KU CP WPFGTN[KPI CPF QPIQKPI RTQEGUU KP VJG )TQWR HQT VJG KFGPVKſECVKQP GXCNWCVKQP CPF OKVKICVKQP QH )QXGTPCPEGUWUVCKPCDKNKV[KUDGEQOKPIOQTGGUUGPVKCNKPICKPKPI KVUUKIPKſECPVTKUMU6JGU[UVGOQHVJGKPVGTPCNEQPVTQNKPENWFGU VJGEQPſFGPEGQHKPXGUVQTUQVJGTUVCMGJQNFGTUCPFVJGRWDNKE IQXGTPCPEG TKUM OCPCIGOGPV ſPCPEKCN QTICPK\CVKQPCN 6JG)TQWRTGEQIPKUGUVJGKORQTVCPVQHIQXGTPCPEGUWUVCKPCDKNKV[ QRGTCVKQPCN CPF EQORNKCPEG EQPVTQN &WG VQ VJG NKOKVCVKQPU CPF KPEQTRQTCVKPI KV KPVQ CNN HWPEVKQPU CPF RTQEGUUGU YJKEJ KPJGTGPVKPCP[U[UVGOQHTKUMOCPCIGOGPVCPFKPVGTPCNEQPVTQNU KPENWFGUVTCVGIKERNCPPKPICEEQWPVCDKNKV[UWUVCKPCDNGRNCPPKPI VJG)TQWRŏUU[UVGOQHKPVGTPCNEQPVTQNKUFGUKIPGFVQOCPCIG CPFFGXGNQROGPVUWEJCU TCVJGTVJCPVQGNKOKPCVGVJGTKUMQHHCKNWTGVQCEJKGXGEQTRQTCVG QDLGEVKXGU Ŗ 6QGPUWTGUWUVCKPCDKNKV[HQTOUCPKPVGITCNRCTVQHVJG5VTCVGIKE 2NCPPKPI Internal Audit Ŗ 6Q GPJCPEG UWUVCKPCDKNKV[ VJTQWIJ TGIWNCT WRFCVGU QH UVTCVGIKGURQNKEKGURTQEGFWTGUCPFRTQXKFGTGNGXCPVVTCKPKPI 6JG )TQWR KP KVU GHHQTV VQ RTQXKFG CFGSWCVG CPF GHHGEVKXG Ŗ 6QGUVCDNKUJCPFEQPVKPWGVQKORTQXGCRRTQRTKCVGIQXGTPCPEG KPVGTPCNEQPVTQNU[UVGOJCFEQPFWEVGFSWCTVGTN[KPVGTPCNCWFKV structures and processes; GZGTEKUGUVQRGTHQTOTGIWNCTCPFU[UVGOCVKETGXKGYQHVJGTKUM Ŗ 6QCUUGUUVJGKORCEVUCPFQWVEQOGUQHUWUVCKPCDKNKV[CPF OCPCIGOGPVCPFKPVGTPCNEQPVTQNU[UVGOQHVJG)TQWRCUYGNN Ŗ 6Q RNCP HQT NQPI VGTO TGUQWTEGU KPENWFKPI JWOCP CPF CUVQGPUWTGEQORNKCPEGUVQVJGRQNKEKGUCPFDWUKPGUURTQEGUUGU ſPCPEKCN

'FWURGE*QNFKPIU$GTJCF (200401008252) 16 #PPWCN4GRQTV SUSTAINABILITY STATEMENT (cont’d)

Equal Opportunity B. ENVIRONMENT SUSTAINABILITY 6JG )TQWR CTG CP GSWCN QRRQTVWPKV[ GORNQ[GT 6JGTG KU PQ 6JG)TQWRKUCNUQEQOOKVVGFVQGPXKTQPOGPVCNRTQVGEVKQPCPF FKUETKOKPCVKQP CICKPUV GORNQ[GGU TGICTFNGUU QH TCEG TGNKIKQP UVGYCTFUJKR 6JG)TQWRTGEQIPKUGUVJCVRQNNWVKQP RTGXGPVKQP IGPFGT QT EWNVWTG 1WT GORNQ[GGUŏ ITQYVJ FGXGNQROGPV CPF DKQFKXGTUKV[CPFTGUQWTEGEQPUGTXCVKQPCTGMG[UVQCUWUVCKPCDNG UCHGV[JCXGCNYC[UDGGPQWTRTKQTKV['ORNQ[GGUCTGRTQXKFGF GPXKTQPOGPV CPF YKNN GHHGEVKXGN[ KPVGITCVG VJGUG EQPEGRV KPVQ YKVJ C UCHG CPF JGCNVJ[ CPF KPUWTCPEG RTQVGEVKQP 'HHGEVKXG QWTDWUKPGUUFGEKUKQPOCMKPI CPFEQPVKPWQWUVTCKPKPICTGIKXGPVQHQEWUQPVJGGORNQ[GGUŏ FGXGNQROGPVCPFCFXCPEGOGPV 6JGHQNNQYKPICTGDGKPIECTTKGFQWV

GENDER 6QVTCKPGFGORNQ[GGUKP%24ſTGUCHGV[CPFDCUKEſTUVCKF VQTCKUGGORNQ[GGUEQPUEKQWUPGUUQHUCHGV[CVVJGYQTMRNCEG NGCFKPIVQNGUUYQTMTGNCVGFKNNJGCNVJCPFKPEKFGPVU 6QRWTUWGCPFGPEQWTCIGVJGWUGQHTGPGYCDNGTGUQWTEGU 6QTGFWEGEQPUWORVKQPQHPQPTGPGYCDNGPQPTGE[ENGF OCVGTKCNU 42% Male 6QTGFWEGGPGTI[EQPUWORVKQPNKIJVUYKNNDGUYKVEJGFQHHCV Female WPWUGFQHſEGUCPFDGHQTGRO 58% 6QETGCVGCPGXGTKPETGCUKPICYCTGPGUUQHVJKURQNKE[YKVJKP VJG)TQWRCPFUVCMGJQNFGTU

C. SOCIAL SUSTAINABILITY ETHNICITY #VVJGJGCTVQHVJG)TQWRŏUUWEEGUUCTGKVUGORNQ[GGU7NVKOCVGN[ 0.6% CUCHGCPFKPENWUKXGYQTMGPXKTQPOGPVKUQPGVJCVYKNNGPEQWTCIG CURKTKVQHVQIGVJGTPGUUCPFJCTOQP[COQPIUVGORNQ[GGU6JG )TQWRKUEQOOKVVGFVQKPXGUVKPIKPGORNQ[GGITQYVJCPFDWKNF 9.4% CYQTMRNCEGVJCVTGEQIPKUGUVCNGPV6JGTGCTGXCTKQWURNCVHQTOU Others HQTGORNQ[GGUVQGPICIGOCPCIGOGPVQPKUUWGUVJCVCHHGEVVJGO CPFVJGVYQYC[FKCNQIWGCUUKUVUKPEQETGCVKPICJQNKUVKEYQTM Bumiputera GPXKTQPOGPV6JG)TQWRJCUUVTKEVCPVKFKUETKOKPCVQT[RQNKEKGU 90% Chinese KPRNCEGVQGPUWTGKPENWUKXGPGUU

Occupational Safety and Health

The Group emphasises on the importance of creating a YQTMRNCEG VJCV KU UCHG UGEWTG CPF HTGG HTQO JCTCUUOGPV AGE KPVKOKFCVKQP VJTGCVU CPF XKQNGPEG /GCUWTGU CTG KP RNCEG VQ 2% 0.6% prioritise safety and provide a working environment which is HTGGHTQOCEEKFGPVU 10% < 20 YEARS 18.4% Open-plan Concept 20 - 29 YEARS

6JG )TQWR RTCEVKEGF QRGPRNCP EQPEGRV KP QWT QHſEGU VQ 30 - 39 YEARS KORTQXGEQNNCDQTCVKQPCOQPIUVGORNQ[GGUVJCVJGNRUKPUJCRKPI 33% 40 – 49 YEARS VJGYQTMKPIEWNVWTG 36% 50 – 59 YEARS Work-life Balance 60 YEARS AND ABOVE 6JG)TQWRRTKQTKVK\GCJGCNVJ[YQTMNKHGDCNCPEGCUKVKUXKVCNKP UVTKMKPICDCNCPEGCOQPIUVVJGFGOCPFUQHLQDHCOKN[CPFQVJGT CURGEVUQHJQNKUVKENKXKPI6JWUVJG)TQWRRTCEVKEGUƀGZKDKNKV[ KPYQTMKPIJQWTUCPFCNNQYKPIGORNQ[GGUVQYQTMHTQOJQOG VQGPCDNGGORNQ[GGUVQJCXGDGVVGTEQPVTQNQXGTVJGKTUEJGFWNG VJCVEQWNFKORTQXGYQTMNKHGDCNCPEGQHVJGGORNQ[GGU

'FWURGE*QNFKPIU$GTJCF (200401008252) 17 #PPWCN4GRQTV SUSTAINABILITY STATEMENT (cont’d)

+P NKGW QH VJKU 'FWURGE )TQWR CTTCPIGF CP PCVKQPYKFG D. CORPORATE SOCIAL RESPONSIBILITY QPNKPG GXGPV ő2TKOCT[  G)TCFWCVKQP %GTGOQP[Œ HQT CNN RTKOCT[UVWFGPVUYJQCTGWPCDNGVQCVVGPFVJGKTITCFWCVKQP 'FWURGE*QNFKPIU$GTJCF ő'FWURGEŒQTVJGő)TQWRŒ TGEQIPKUGU EQPXGPVKQPCNN[6JGG)TCFWCVKQP%GTGOQP[QPNKPGGXGPVYCU KVUTGURQPUKDKNKVKGUVQCNNVJG%QORCP[ŏUUJCTGJQNFGTUEWUVQOGTU UVTGCOGF NKXG QP  &GEGODGT  CV &[PCDQQM /CNC[UKC CPF GORNQ[GGU %QTRQTCVG UQEKCN TGURQPUKDKNKV[ ő%54Œ  ;QWVWDG %JCPPGN YJKEJ ICTPGTGF QXGT  XKGYU 6JG RNC[U C NCTIG TQNG KP VJG KORCEV QH VJG )TQWRU QRGTCVKQPU QH G)TCFWCVKQP %GTGOQP[ KU QTICPK\GF KP EQNNCDQTCVKQP YKVJ YJKEJVJGTGNCVKQPUJKRUYKVJVJG)TQWRUEWUVQOGTUUWRRNKGTU )QQING CPF /KETQUQHV KP YJKEJ ITCFWCVKQP URGGEJGU YGTG CPF QVJGTU CPF VJG GPXKTQPOGPVCN OCVVGTU QH QRGTCVKQP CTG presented by the Chairman of Kesatuan Kebangsaan Guru-Guru RCTCOQWPV'FWURGEKUDQPFGFVQIGVJGTD[CUVTQPIDGNKGHVJCV $GUCT/CNC[UKCCPFVJG/CLNKU)WTW$GUCTHTQOXCTKQWUUVCVGU QWT EQTRQTCVG RJKNQUQRJ[ KU VQ DG C ECTKPI EQORCP[ CPF VJG 'FWURGE )TQWR CNUQ RTQXKFGF G)TCFWCVKQP EGTVKſECVG VQ VJG GORNQ[GGU QH VJG )TQWR JCU GPFGCXQWT VQ YQTM HQT C DGVVGT 2TKOCT[UVWFGPVUYJQCVVGPFGFVJGG)TCFWCVKQP%GTGOQP[ UQEKGV[RTGUGTXGCPFRTQVGEVVJGGPXKTQPOGPVCPFVQDGCTQNG OQFGNYJGPKVEQOGUVQTGURQPUKDKNKV[CPFVTWUVD[GZRCPFKPI CPFFGGRGPKPIGHHQTVUVQRTQXKFGJKIJSWCNKV[56'/GFWECVKQP QWVUKFGQHUEJQQNVKOGCPFKP56'/NGCTPKPIGEQU[UVGOU6JG IQCNYCUVQTGCEJCUOCP[EJKNFTGPCPF[QWVJCURQUUKDNGYKVJKP GZKUVKPIQTICPKUCVKQPUCPFPGVYQTMUCETQUUVJGEQWPVT['FWURGE CNUQTGEQIPKUGUVJGKORQTVCPEGQH%54VQYCTFUGFWECVKQPCPF EQOOWPKV[FGXGNQROGPV

/QXKPI QP 'FWURGE UVTKXGU VQ EQPUVCPVN[ KORTQXG GNGCTPKPI RTQFWEVU VJTQWIJ TGUGCTEJ CPF FGXGNQROGPV 4&  RTQITCOU YJKNG WUKPI GPGTI[ GHſEKGPE[ OGVJQFU 6JKU KU YJCV OCMGU 'FWURGE WPKSWG 'FWURGE EQPVKPWQWUN[ RTQOQVGU CYCTGPGUU WPFGTUVCPFKPI CPF EQOOKVOGPV VQ GFWECVKQP KPUVKVWVKQPU YJKNGTGFWEKPIYCUVCIGCPFEQPVTKDWVKPIUWDUVCPVKCNN[VQYCTFU JGNRKPIQWTGPXKTQPOGPV

'FWURGEEQPVTKDWVGUVQEJCTKVCDNGECWUGUCPFOCKPVCKPUUWRRQTV EQXGTKPIDQVJEQTRQTCVGCPFGORNQ[GGKPXQNXGOGPV'FWURGE $GJKPFVJGUEGPGUQHG)TCFWCVKQP%GTGOQP[ CSR programmes contribute to communities both through FKTGEVſPCPEKCNUWRRQTVCPFVJTQWIJVJGUWRRQTVQHKVURCTVPGTU CPFGORNQ[GGUYJQRCTVKEKRCVGKP%54CEVKXKVKGU#NNRTQITCOU YKNNJQNFVJGUCOGQDLGEVKXGŌVQRTQOQVGFKIKVCNGFWECVKQPCPF E[DGTUCHGV[CPFYGNNPGUU

'FWURGE YJKEJ JCU DGGP VJG NGCFGT KP RTQXKFKPI KPVGITCVGF GFWECVKQP UGTXKEGU KPXQNXKPI KPPQXCVKQP CPF GFWECVKQP VGEJPQNQI[ HQT UEJQQNU UKPEG  UJCNN EQPVKPWG KVU NGICE[ and ascertain that it is our duty to ensure that the Group are JGNRKPIVQTCKUGTGURQPUKDNGFKIKVCNEKVK\GPUYJQECPWUGQPNKPG TGUQWTEGUUCHGN[CPFGHHGEVKXGN[GURGEKCNN[FWTKPIVJG%18+& RCPFGOKE .KXG5VTGCOCV&[PCDQQM/CNC[UKC;QWVWDG%JCPPGN &[PCDQQM/CNC[UKC;QWVWDG%JCPPGN6QVCN8KGYU +PVJGHCEGQHUEJQQNENQUWTGUPCVKQPYKFGFWGVQVJG%18+& RCPFGOKE NKHG HQT OQUV UVWFGPVU JCU EQPVKPWGF QP ō LWUV KPFQQTU 5VWFGPVU JCXG OKITCVGF QPNKPG VQ UVTGCO NGEVWTGU 6JG QDLGEVKXG QH VJG G)TCFWCVKQP %GTGOQP[ KU VQ TGEQPPGEV CVVGPF EQWTUGU CPF VCMG VGUVU NKMGN[ HQT VJG TGOCKPFGT QH VJG HCOKNKGU CPF HTKGPFU QH VJG RTKOCT[  UVWFGPVU VJCV TGIKUVGTGF [GCT (QT UQQPVQDG ITCFWCVGU VJG RCPFGOKE VJTGCVGPU VQ HQT VJG G)TCFWCVKQP VQ YKVPGUU CPF EGNGDTCVG VJG UVWFGPVU KORCEVUGXGTCNOGCPKPIHWNOKNGUVQPGUōGXGPVUNKMGITCFWCVKQP ITCFWCVKQP KPCYC[VJCVKUOQXKPIVQYCTFU VJGPGYPQTOCN VJCVYQWNFŏXGDTQWIJVVQIGVJGTHCOKN[CPFHTKGPFUDGHQTGVJG[ (WTVJGTOQTG VJGTG KU CNUQ C EQORGVKVKQP KP YJKEJ VJG OQUV OQXGQPVQVJGPGZVEJCRVGTQHVJGKTNKXGU6JGUGUVWFGPVUFKFPŏV ETGCVKXG YKUJGU EWTCVGF D[ C UVWFGPV VQ CNN VJG 2TKOCT[  have the chance to say proper goodbyes or make the most of UVWFGPVUUVCPFUCEJCPEGVQYKPVJGITCPFRTK\GQHDTCPFPGY YJCVUJQWNFŏXGDGGPVJGKTſPCNFC[UCURTKOCT[UEJQQNUVWFGPVU #EGT.CRVQR

'FWURGE*QNFKPIU$GTJCF (200401008252) 18 #PPWCN4GRQTV SUSTAINABILITY STATEMENT (cont’d)

KPOCMKPIG.GCTPKPIGHHGEVKXGKVKUKORQTVCPVVQMPQYJQYVQ D. CORPORATE SOCIAL RESPONSIBILITY (cont’d) OCPCIGKVCPFCEEGUUVQVJGTGUQWTEGU6CMGCOKPWVGCPFLWUV KOCIKPGKHQPGFQPQVJCXGVJGTQCFOCRVQIWKFGVJGOUGNXGU &WTKPIVJGſTUV/QXGOGPV%QPVTQN1TFGTQP/CTEJ HTQOVJGUVCTVVQſ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ſ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ſEKGPE[CPFGHHGEVKXGPGUU VQRTQXKFGNCRVQRNGCUKPIUGTXKEGVJCVCNNQYUUVWFGPVUVQJCXGC CPF CNUQ VQ KORTQXG WUGTCEEGUUKDKNKV[ CPF VKOG ƀGZKDKNKV[ VQ NCRVQR YKVJ VJG CFFGF DCEMGPF UGTXKEG FWTKPI VJGKT EQPVTCEV GPICIGNGCTPGTUKPVJGNGCTPKPIRTQEGUU RGTKQF9KVJVJKUKPRNCEGCNQVQH$HCOKNKGUCPFUVWFGPVU JCXGNGUUVQYQTT[CDQWVVJGEQUVVJCVEQOGUYKVJRWTEJCUKPIC 'NGCTPKPI KU XCUV CPF CP GZRCPFKPI RNCVHQTO YKVJ JWIG PGYNCRVQRQTEQORWVGTKPQTFGTVQCVVGPFVJGKTQPNKPGENCUUGU RTQURGEVKXGKPJKIJGTGFWECVKQP5KPEGVJGTGCTGOCP[EJCNNGPIGU

5,- % %JGP/QJ4GPVCNPQVGDQQMVQ$HCOKNKGU

&[PCDQQM/CNC[UKC;QWVWDG%JCPPGN6QVCN8KGYU 5,- % ,KPLCPI7VCTC4GPVCNPQVGDQQMVQ$HCOKNKGU

'FWURGE*QNFKPIU$GTJCF (200401008252) 19 #PPWCN4GRQTV AUDIT AND RISK MANAGEMENT COMMITTEE REPORT

6JG$QCTFJCFQP,CPWCT[TGUQNXGFVQJCXGVJGTKUMOCPCIGOGPVQHVJG%QORCP[VQDGWPFGTVJGRWTXKGYQHVJG#WFKV %QOOKVVGG KP XKGY QH VJG %QORCP[ŏU EWTTGPV TKUM GZRQUWTG 6JG #WFKV %QOOKVVGG YCU VJGP TGPCOGF CU VJG #WFKV CPF 4KUM /CPCIGOGPV%QOOKVVGG őARMCŒ 6JG#4/%CUUWOGUVJGTQNGKPQXGTUGGKPIVJGTKUMOCPCIGOGPVHWPEVKQPUQHVJG%QORCP[CPF KVUUWDUKFKCTKGU őGroupŒ VQIGVJGTYKVJVJGOCPCIGOGPV

6JG#4/%KURNGCUGFVQRTGUGPVVJG#4/%4GRQTVHQTVJGſPCPEKCN[GCTGPFGF(GDTWCT[KPEQORNKCPEGYKVJVJG#%' /CTMGV.KUVKPI4GSWKTGOGPVU őAMLRŒ QH$WTUC/CNC[UKC5GEWTKVKGU$GTJCF őBursa SecuritiesŒ 

COMPOSITION OF ARMC

6JGEWTTGPV#4/%EQORTKUGUVJTGG  OGODGTUCUHQNNQYU

ARMC Members Designation Directorship &CVQŏ&T/QJF#TKHH$KP#TCHH Chairman Senior Independent Non-Executive Director 2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC Member Independent Non-Executive Director Mr Lim Thian Loong Member Independent Non-Executive Director

6JG#4/%UJCNNDGCRRQKPVGFD[VJG$QCTFQH&KTGEVQTU őBoardŒ HTQOCOQPIUVVJG&KTGEVQTUCPFUJCNNEQPUKUVQHPQVHGYGTVJCP VJTGG  OGODGTU6JG#4/%EQORTKUGUYJQNN[QH+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTU

6JG%JCKTOCPQHVJG#4/%KUPQVVJG%JCKTOCPQHVJG$QCTFCPFKUCRRQKPVGFCOQPIUVVJGKTOGODGTUYJQKUCP+PFGRGPFGPV0QP 'ZGEWVKXG&KTGEVQT+PVJGCDUGPEGQHVJG%JCKTOCPQHVJG#4/%VJGTGOCKPKPIOGODGTURTGUGPVUJCNNGNGEVQPGQHVJGKTOGODGTU CU%JCKTOCPQHVJGOGGVKPI0QCNVGTPCVGFKTGEVQTKUCRRQKPVGFCUCOGODGTQHVJG#4/%

6JG%QORCP[EQORNKGUYKVJ4WNG  E QHVJG#/.4CUQPG  QHVJG#4/%OGODGTU/T.KO6JKCP.QQPIKUCOGODGTQH VJG/CNC[UKCP+PUVKVWVGQH#EEQWPVCPVU őMIAŒ 

MEETING OF ARMC

6JG#4/%UJCNNOGGVCVNGCUVHQWT  VKOGUC[GCTCNVJQWIJCFFKVKQPCNOGGVKPIUOC[DGECNNGFCVCP[VKOGCVVJGFKUETGVKQPQHVJG #4/%%JCKTOCP

6JG#4/%OGVHQWT  VKOGUFWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[CPFVJGTGEQTFUQHCVVGPFCPEGQHVJG#4/% OGODGTUCTGUGVQWVDGNQY

ARMC Members Designation Attendance (Number) &CVQŏ&T/QJF#TKHH$KP#TCHH %JCKTOCP5GPKQT+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT  2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC /GODGT+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT  Mr Lim Thian Loong /GODGT+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT 

+P CFFKVKQP VQ VJG #4/% OGODGTU VJG %JKGH 'ZGEWVKXG 1HſEGT őCEOŒ  VJG %JKGH (KPCPEKCN 1HſEGT őCFOŒ  CPF VJG KPVGTPCN CWFKVQTUUJCNNPQTOCNN[CVVGPFVJGOGGVKPIUCUKPXKVGGU4GRTGUGPVCVKXGUQHVJGGZVGTPCNCWFKVQTUUJCNNCVVGPFOGGVKPIUYJGTGOCVVGTU TGNCVKPIVQVJGCWFKVQHVJGUVCVWVQT[CEEQWPVUCPPWCNſPCPEKCNUVCVGOGPVUCPFQTVJGGZVGTPCNCWFKVQTUCTGVQDGFKUEWUUGF1VJGT $QCTFOGODGTUUGPKQTOCPCIGOGPVCPFGORNQ[GGUOC[CVVGPFVJGOGGVKPIWRQPKPXKVCVKQPQHVJG#4/%%JCKTOCP

6JG#4/%JCUCHQTOCNCPFVTCPURCTGPVTGNCVKQPUJKRYKVJVJGGZVGTPCNCWFKVQTU6JG#4/%UJQWNFOGGVYKVJVJGGZVGTPCNCWFKVQTU YKVJQWVVJGRTGUGPEGQHVJG'ZGEWVKXG&KTGEVQTUCPFVJGOCPCIGOGPVCVNGCUVVYKEGC[GCT&WTKPIVJGſPCPEKCN[GCTGPFGF (GDTWCT[/GUUTU7*; őUHYŒ JCFQP1EVQDGTCPF,CPWCT[OGVYKVJVJGGZVGTPCNCWFKVQTUVYKEGYKVJQWV VJGRTGUGPEGQHVJG'ZGEWVKXG&KTGEVQTUCPFVJGOCPCIGOGPVVQFKUEWUUVJGKTCWFKVſPFKPIUCPFVJGNGXGNQHEQQRGTCVKQPCPF CUUKUVCPEGTGPFGTGFD[VJGOCPCIGOGPVVQVJGKTCWFKVRGTUQPPGNFWTKPIVJGKTEQWTUGQHCWFKV

0QVKEGQHOGGVKPIUJCNNDGUGPVVQCNNVJG#4/%OGODGTUCPFCP[QVJGTRGTUQPYJQOC[DGTGSWKTGFQTKPXKVGFVQCVVGPF#NN SWCTVGTN[TGUWNVUCPFCPPWCNſPCPEKCNUVCVGOGPVUUJCNNDGTGXKGYGFCPFFKUEWUUGFD[VJG#4/%KPVJG#4/%OGGVKPIVQDGJGNF RTKQTVQVJG$QCTFOGGVKPICPFDGRTGUGPVGFVQVJG$QCTFHQTCRRTQXCN6JG#4/%%JCKTOCPUJCNNTGRQTVQPGCEJOGGVKPIVQVJG $QCTF

'FWURGE*QNFKPIU$GTJCF (200401008252) 20 #PPWCN4GRQTV AUDIT AND RISK MANAGEMENT COMMITTEE REPORT (cont’d)

MEETING OF ARMC (cont’d)

6JG%QORCP[5GETGVCT[UJCNNDGVJGUGETGVCT[QHVJG#4/%CPFYKNNDGTGURQPUKDNGHQTUGPFKPIQWVPQVKEGQHOGGVKPIURTGRCTKPI CPF MGGRKPI OKPWVGU QH OGGVKPIU CPF EKTEWNCVKPI VJG OKPWVGU QH OGGVKPIU VQ CNN VJG #4/% OGODGTU 0QVKEG QH OGGVKPI CPF UWRRQTVKPIFQEWOGPVUCTGVQDGEKTEWNCVGFVQVJG#4/%OGODGTUCVNGCUVUGXGP  FC[URTKQTVQVJGOGGVKPIUQCUVQRTQXKFGVJG #4/%OGODGTUYKVJTGNGXCPVCPFVKOGN[KPHQTOCVKQPHQTGHHGEVKXGFKUEWUUKQPUFWTKPIVJGOGGVKPI

6JGVGTOUQHTGHGTGPEGQHVJG#4/%KUTGXKGYGFD[VJG$QCTFKPCEEQTFCPEGYKVJVJGPGGFUQHVJG)TQWRCPFKURWDNKUJGFQPVJG Company’s website at YYYGFWURGEEQOO[

SUMMARY OF ARMC ACTIVITIES

+PNKPGYKVJVJGVGTOUQHTGHGTGPEGQHVJG#4/%VJGHQNNQYKPICEVKXKVKGUYGTGECTTKGFQWVD[VJG#4/%FWTKPIVJGſPCPEKCN[GCT GPFGF(GDTWCT[

1. Financial Reporting

(a) Review of Quarterly Results

 6JG#4/%TGXKGYGFVJGſPCPEKCNRQUKVKQPUSWCTVGTN[TGUWNVUCPFCPPQWPEGOGPVUHQTVJGTGURGEVKXGſPCPEKCNSWCTVGTU RTKQTVQUWDOKUUKQPVQVJG$QCTFHQTEQPUKFGTCVKQPCPFCRRTQXCN

 6JGTGYGTGHQWT  SWCTVGTN[TGUWNVUVCDNGFCVVJG#4/%OGGVKPIUYJKEJYGTGJGNFQP,WN[,WN[ 1EVQDGTCPF,CPWCT[

(b) Audited Financial Statements

 6JG #4/% TGXKGYGF VJG CWFKVGF ſPCPEKCN UVCVGOGPVU VQIGVJGT YKVJ VJG &KTGEVQTUŏ CPF #WFKVQTUŏ 4GRQTVU CPF OCFG TGEQOOGPFCVKQPU VQ VJG $QCTF HQT CRRTQXCN 6JG #4/% GPUWTGU VJG TGRQTVU CTG RTGRCTGF KP EQORNKCPEG YKVJ VJG /CNC[UKCP(KPCPEKCN4GRQTVKPI5VCPFCTFU#RRNKECDNG#EEQWPVKPI5VCPFCTFUVJG%QORCPKGU#EVCPFVJG#/.4 RTKQTVQUWDOKUUKQPVQVJG$QCTFHQTCRRTQXCN

 1P,WN[VJG#4/%TGXKGYGFVJGCWFKVGFſPCPEKCNUVCVGOGPVUHQTVJGſPCPEKCN[GCTGPFGF(GDTWCT[ FWN[CWFKVGFD[7*;

(c) Statement on Risk Management and Internal Control (“SORMIC”)

 6JG #4/% TGXKGYGF VJG 514/+% VQIGVJGT YKVJ VJG KPVGTPCN CWFKVQTU CPF GZVGTPCN CWFKVQTU CPF TGEGKXGF CUUWTCPEG HTQOVJG%'1CPF%(1VJCVVJG)TQWRŏUTKUMOCPCIGOGPVCPFKPVGTPCNEQPVTQNU[UVGOUCTGQRGTCVKPICFGSWCVGN[CPF GHHGEVKXGN[KPCNNCURGEVUDGHQTGTGEQOOGPFKPIVJG514/+%VQVJG$QCTFHQTCRRTQXCN

 1P,WN[VJG#4/%TGXKGYGFVJG514/+%HQTRWDNKECVKQPKPVJG#PPWCN4GRQTV

2. External Audit

6JG#4/%TGXKGYGFVJGGZVGTPCNCWFKVRNCPPKPIOGOQTCPFWOYJKEJQWVNKPGFVJGCWFKVUEQRGCWFKVRTQEGUUCPFCTGCUQH GORJCUKUDCUGFQPVJGRTGUGPVCVKQPQHVJGCWFKVRNCPQHVJGGZVGTPCNCWFKVQTU

6JG#4/%EQPUKFGTGFVJGſPFKPIURTGUGPVGFD[VJGGZVGTPCNCWFKVQTUKPVJGKTCWFKVTGXKGYOGOQTCPFWOCPFVJGTGURQPUGU HTQOVJGOCPCIGOGPV

6JG#4/%TGXKGYGFVJGHGGUCPFV[RGUQHPQPCWFKVUGTXKEGURTQXKFGFD[VJGGZVGTPCNCWFKVQTU6JGPQPCWFKVHGGUKPEWTTGF HQTVJGſPCPEKCN[GCTGPFGF(GDTWCT[YCUKPTGURGEVQHVJGTGXKGYQHVJG514/+%

6JG#4/%KUUCVKUſGFYKVJVJGUWKVCDKNKV[QH7*;DCUGFQPVJGKTKPFGRGPFGPEGVJGSWCNKV[QHUGTXKEGUCPFUWHſEKGPE[QH TGUQWTEGURTQXKFGFD[VJGOVQVJG)TQWRKPVGTOUQHVJGſTOCPFVJGRTQHGUUKQPCNUVCHHCUUKIPGFVQVJGCWFKVCPFTGEQOOGPFGF VQVJG$QCTFVJGTGCRRQKPVOGPVQH7*;CUVJGCWFKVQTUQHVJG%QORCP[CVVJGHQTVJEQOKPI#PPWCN)GPGTCN/GGVKPI őAGMŒ 

'FWURGE*QNFKPIU$GTJCF (200401008252) 21 #PPWCN4GRQTV AUDIT AND RISK MANAGEMENT COMMITTEE REPORT (cont’d)

SUMMARY OF ACTIVITIES OF ARMC (cont’d)

3. Internal Audit

6JG )TQWR QWVUQWTEGF KVU KPVGTPCN CWFKV HWPEVKQPU VQ C RTQHGUUKQPCN KPVGTPCN CWFKV EQORCP[ 6JG KPVGTPCN CWFKVQTU YGTG GPICIGFVQEQPFWEVTGIWNCTTGXKGYUCPFCRRTCKUCNUQPVJGGHHGEVKXGPGUUQHVJGKPVGTPCNEQPVTQNRTQEGUUIQXGTPCPEGCPFTKUM OCPCIGOGPVYKVJKPVJG)TQWR

6JGKPVGTPCNCWFKVQTUTGRQTVFKTGEVN[VQVJG#4/%CPFCTGIKXGPHWNNCEEGUUVQCNNVJGFQEWOGPVUTGNCVKPIVQVJGIQXGTPCPEG ſPCPEKCNUVCVGOGPVUCPFQRGTCVKQPCNCUUGUUOGPVUQHVJG)TQWR

1P,WN[VJG#4/%TGXKGYGFVJGHQNNQYKPIQPKPVGTPCNCWFKV

C  6JGCWFKVſPFKPIUQP#PVK$TKDGT[/CPCIGOGPV5[UVGO #UUGUUOGPV2CRGT VJGTGEQOOGPFCVKQPUHTQOVJGKPVGTPCN CWFKVQTUCPFVJGOCPCIGOGPVŏUTGURQPUGU

D  6JG+PVGTPCN#WFKV5VCVWU4GRQTVQPVJGUVCVWUQHOCPCIGOGPVCEVKQPUHQTRTGXKQWUN[TGRQTVGFCWFKVſPFKPIU

E  6JG+PVGTPCN#WFKV2NCPCPFUEQRGQHYQTMHQTVJGſPCPEKCN[GCTGPFKPI(GDTWCT[

4. Risk Management

6JG#4/%TGXKGYGFVJGQRGTCVKQPCNCPFſPCPEKCNRGTHQTOCPEGQHVJG)TQWRVQGPUWTGVJCVCRRTQRTKCVGOGCUWTGUCTGVCMGP VQCFFTGUUCP[UKIPKſECPVTKUM

The ARMC reviewed the ARMC Report and SORMIC and received assurance from the CEO and CFO that the Group’s risk OCPCIGOGPVCPFKPVGTPCNEQPVTQNU[UVGOUCTGQRGTCVKPICFGSWCVGN[CPFGHHGEVKXGN[KPCNNOCVGTKCNCURGEVU

 4GNCVGF2CTV[6TCPUCEVKQP ő426Œ CPF%QPƀKEVQH+PVGTGUV ő%1+Œ

 #VGCEJSWCTVGTN[OGGVKPIVJG#4/%TGXKGYGFVJG426CPF%1+UKVWCVKQPUVJCVOC[CTKUGYKVJKPVJG)TQWRKPENWFKPICP[ VTCPUCEVKQPRTQEGFWTGQTEQWTUGQHEQPFWEVVJCVTCKUGUSWGUVKQPUQHOCPCIGOGPVKPVGITKV[

 6JG#4/%TGXKGYGFYJGVJGTVJG426CPF%1+UKVWCVKQPUFGVGTOKPGFD[VJG%'1CPF%(1CTGHCKTTGCUQPCDNGCPFQPPQTOCN EQOOGTEKCNVGTOUCPFKPVJGDGUVKPVGTGUVQHVJG%QORCP[RTKQTVQVJG%QORCP[GPVGTKPIKPVQUWEJVTCPUCEVKQP

 &WTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[VJGTGYGTGPQ426CPF%1+UKVWCVKQPUTGRQTVGF

INTERNAL AUDIT FUNCTIONS

&WTKPI VJG ſPCPEKCN [GCT GPFGF  (GDTWCT[  VJG )TQWR JCF QWVUQWTEGF KVU KPVGTPCN CWFKV HWPEVKQPU VQ CP KPFGRGPFGPV RTQHGUUKQPCNEQORCP[VQCUUKUVVJG#4/%KPFKUEJCTIKPIKVUFWVKGUCPFTGURQPUKDKNKVKGU

6JGKPVGTPCNCWFKVQTUTGRQTVFKTGEVN[VQVJG#4/%CPFRTQXKFGCPKPFGRGPFGPVCPFQDLGEVKXGCUUGUUOGPVQHVJGCFGSWCE[CPF GHHGEVKXGPGUUQHVJGTKUMOCPCIGOGPVKPVGTPCNEQPVTQNCPFIQXGTPCPEGRTQEGUUGUYKVJKPVJG)TQWR6JGKPVGTPCNCWFKVQTUCFQRVC TKUMDCUGFCRRTQCEJKPRNCPPKPICPFEQPFWEVKPIQHCWFKVU6JGKPVGTPCNCWFKVQTUJCXGQTICPKUGFVJGKTYQTMKPCEEQTFCPEGVQVJG RTKPEKRNGUQHVJGKPVGTPCNCWFKVKPIUVCPFCTFUEQXGTKPIVJGEQPFWEVQHVJGCWFKVRNCPPKPIGZGEWVKQPFQEWOGPVCVKQPUEQOOWPKECVKQP QHſPFKPIUCPFEQPUWNVCVKQPYKVJMG[UVCMGJQNFGTUQPVJGCWFKVEQPEGTPU

6JGUEQRGCPFRNCPQHVJGKPVGTPCNCWFKVCEVKXKVKGUCTGKFGPVKſGFCPPWCNN[CPFCRRTQXGFD[VJG#4/%6JG#4/%TGEGKXGUTGRQTV QHVJGſPFKPIUQHVJGKPVGTPCNCWFKVYKVJTGEQOOGPFCVKQPUHTQOVJGKPVGTPCNCWFKVQTUCPFTGURQPUGUHTQOVJGOCPCIGOGPV6JG #4/%TGXKGYUVJGſPFKPIUYKVJVJGOCPCIGOGPVVQGPUWTGVJCVVJGPGEGUUCT[EQTTGEVKXGCEVKQPUCTGKORNGOGPVGFCPFVJGTGCHVGT VJG#4/%%JCKTOCPYKNNTGRQTVVQVJG$QCTF

6JGEQUVUKPEWTTGFHQTVJGKPVGTPCNCWFKVHWPEVKQPUQHVJG)TQWRHQTVJGſPCPEKCN[GCTGPFGF(GDTWCT[YCU4/

EMPLOYEES SHARE OPTION SCHEME

0QCNNQECVKQPQHQRVKQPURWTUWCPVVQGORNQ[GGUUJCTGQRVKQPUEJGOGYCUOCFGFWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[

'FWURGE*QNFKPIU$GTJCF (200401008252) 22 #PPWCN4GRQTV CORPORATE GOVERNANCE OVERVIEW STATEMENT

6JG$QCTFQH&KTGEVQTU őBoardŒ QH'FWURGE*QNFKPIU$GTJCF őEHBŒQTőCompanyŒ TGEQIPKUGUVJGKORQTVCPEGQHIQQFEQTRQTCVG governance and continues to be committed to ensure that high standards of corporate governance are practiced throughout the %QORCP[CPFKVUUWDUKFKCTKGU EQNNGEVKXGN[TGHGTTGFVQCUőGroupŒ 6JG$QCTFUWRRQTVUVJGEQTRQTCVGIQXGTPCPEGHTCOGYQTMCPF EQPVKPWGUVQKORTQXGGZKUVKPIRTCEVKEGUCPFCEJKGXGVJGQDLGEVKXGUQHVJG%QORCP[

6JG$QCTFKURNGCUGFVQRTGUGPVVJKUQXGTXKGYUVCVGOGPVYJKEJUGVUQWVCUWOOCT[QHVJG)TQWRŏUEQTRQTCVGIQXGTPCPEGRTCEVKEGU FWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[KPCEEQTFCPEGYKVJVJG/CNC[UKCP%QFGQP%QTRQTCVG)QXGTPCPEG őMCCGŒ  6JKUUVCVGOGPVKUVQDGTGCFVQIGVJGTYKVJVJG%QTRQTCVG)QXGTPCPEG4GRQTV ő2021 CG ReportŒ QHVJG%QORCP[CUVJG CRRNKECVKQPQHGCEJRTCEVKEGCUUGVQWVKPVJG/%%)KUFKUENQUGFKPVJG%)4GRQTV6JG%)4GRQTVKUCXCKNCDNGQPVJG Company’s website at YYYGFWURGEEQOO[

PRINCIPLE A : BOARD LEADERSHIP AND EFFECTIVENESS

I. BOARD RESPONSIBILITIES

Board Duties and Responsibilities

6JG$QCTFKUTGURQPUKDNGHQTVJGQXGTUKIJVCPFUVGYCTFUJKRQHVJG)TQWRKPENWFKPICUUGUUKPICPFCITGGKPIYKVJVJG)TQWRŏU EQTRQTCVGQDLGEVKXGUCPFVJGIQCNUCPFVCTIGVUVQDGOGVD[OCPCIGOGPVYJKNUVOCPCIGOGPVKUTGURQPUKDNGHQTVJGGZGEWVKQP QHVJGRQNKEKGUCPFCVVCKPOGPVQHVJGQDLGEVKXGUQHVJG)TQWR

6JG$QCTFKUCNYC[UIWKFGFD[VJG$QCTF%JCTVGTYJKEJUGVUQWVVJGFWVKGUCPFTGURQPUKDKNKVKGUCPFOCVVGTUTGUGTXGFHQTVJG $QCTFKPFKUEJCTIKPIKVUſFWEKCT[FWVKGU6JG$QCTFTGXKGYUVJG$QCTF%JCTVGTRGTKQFKECNN[VQGPUWTGVJCVKVEQPVKPWGUVQ TGOCKPTGNGXCPVCPFCRRTQRTKCVG6JG$QCTF%JCTVGTKURWDNKUJGFQPVJG%QORCP[ŏUYGDUKVGCVYYYGFWURGEEQOO[

6JG$QCTFJCFCUUWOGFVJGHQNNQYKPIFWVKGUCPFTGURQPUKDKNKVKGUFWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[

C  4GXKGYGFVJGGHſEKGPE[CPFSWCNKV[QHVJG)TQWRŏUſPCPEKCNTGRQTVKPIRTQEGUUCPFVJGCFGSWCE[CPFKPVGITKV[QHVJG )TQWRŏUKPVGTPCNEQPVTQNCPFOCPCIGOGPVKPHQTOCVKQPU[UVGOUKPENWFKPIU[UVGOUHQTEQORNKCPEGYKVJCRRNKECDNGNCYU TGIWNCVKQPUTWNGUFKTGEVKXGUCPFIWKFGNKPGUCPFYCUUCVKUſGFVJCVVJGKPVGTPCNEQPVTQNU[UVGOUCPFKPHQTOCVKQPU[UVGOU YGTGCFGSWCVGKPCNNOCVGTKCNCURGEVUCPFVJCVVJG)TQWREQORNKGFYKVJCRRNKECDNGNCYUCPFTGIWNCVKQPU

D  +FGPVKſGFRTKPEKRCNTKUMUQHCNNCURGEVUQHVJGDWUKPGUUCPFGPUWTGFVJCVCRRTQRTKCVGU[UVGOUYGTGKORNGOGPVGFVQOCPCIG these risks;

E  'XCNWCVGFVJGEQPFWEVQHVJG)TQWRŏUDWUKPGUUDCUGFQPVJGOQPVJN[CPFSWCTVGTN[ſPCPEKCNCPFQVJGTTGRQTVURTGRCTGF D[OCPCIGOGPVCPFEQPENWFGFVJCVVJGDWUKPGUUKUDGKPIOCPCIGFUWUVCKPCDN[

F  4GXKGYGFVJG5WUVCKPCDKNKV[4GRQTVQHVJG)TQWRCPFYCUUCVKUſGFVJCVVJGTGRQTVTGƀGEVUVJGUWUVCKPCDKNKV[QHKVUDWUKPGUU and the environment it operates in;

G  4GXKGYGFUWEEGUUKQPRNCPPKPIKPENWFKPICRRQKPVKPIVTCKPKPICPFſZKPIQHEQORGPUCVKQPQHUGPKQTOCPCIGOGPV

H  'PUWTGFVJCVVJG%QORCP[ŏUKPXGUVQTTGNCVKQPRTQITCOOGUCPFUJCTGJQNFGTUŏEQOOWPKECVKQPRQNKE[YGTGKORNGOGPVGF GHHGEVKXGN[

I  4GXKGYGFVJGKPVGTKOſPCPEKCNUVCVGOGPVU CPFVJGCPPWCN TGRQTVCPFYCUUCVKUſGF VJCVVJGſPCPEKCN UVCVGOGPVU CPF VJGEQPVGPVUQHVJGCPPWCNTGRQTVTGƀGEVGFVJGVTWGCPFHCKTXKGYQHVJGſPCPEKCNRQUKVKQPCPFTGUWNVUQHVJG)TQWRCPF RTGUGPVGFKVUCEVKXKVKGUCEEWTCVGN[

J  'PUWTGFEQPVKPWKPIGFWECVKQPQTVTCKPKPIHQTVJG&KTGEVQTUVQMGGRCDTGCUVQHTGNGXCPVEJCPIGUKPNCYUCPFTGIWNCVKQPU CPFVJGFGXGNQROGPVQHVJGKPFWUVT[

'FWURGE*QNFKPIU$GTJCF (200401008252) 23 #PPWCN4GRQTV CORPORATE GOVERNANCE OVERVIEW STATEMENT (cont’d)

PRINCIPLE A : BOARD LEADERSHIP AND EFFECTIVENESS (cont’d)

I. BOARD RESPONSIBILITIES (cont’d)

4QNGUCPF4GURQPUKDKNKVKGUQHVJG%JCKTOCPCPF%JKGH'ZGEWVKXG1HſEGT

6JG%QORCP[FQGUPQVJCXGCFGUKIPCVGF%JCKTOCP6JG$QCTFGNGEVUQPGQHVJG&KTGEVQTURTGUGPVCVVJGDQCTFOGGVKPIVQ DGVJG%JCKTOCPQHVJGOGGVKPI6JGGNGEVGF%JCKTOCPKPUVKNUIQQFIQXGTPCPEGRTCEVKEGUD[GPUWTKPIVJCVCNNVJG&KTGEVQTU RCTVKEKRCVGEQPUVTWEVKXGN[FWTKPIVJGOGGVKPIU6JG%QORCP[KUUVKNNVT[KPIVQKFGPVKH[CPCRRTQRTKCVGECPFKFCVGHQTVJKURQUKVKQP

&WTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[VJG%JKGH'ZGEWVKXG1HſEGT őCEOŒ /T.KO'GP*QPIYJQKUCNUQC &KTGEVQTQHVJG%QORCP[KUTGURQPUKDNGHQTVJGFC[VQFC[OCPCIGOGPVQHVJGDWUKPGUUCPFQRGTCVKQPUQHVJG)TQWR6JG%'1 KUUWRRQTVGFD[COCPCIGOGPVVGCOCPFQVJGTEQOOKVVGGUGUVCDNKUJGFWPFGTVJG)TQWRŏUOCPCIGOGPVHTCOGYQTM6JG$QCTF KUCNUQMGRVKPHQTOGFQHMG[UVTCVGIKEKPKVKCVKXGUUKIPKſECPVQRGTCVKQPCNKUUWGUCPFVJG)TQWRŏURGTHQTOCPEG

Company Secretary

6JG$QCTFKUUWRRQTVGFD[SWCNKſGFCPFEQORGVGPV%QORCP[5GETGVCTKGUYJQCTGTGURQPUKDNGHQTGPUWTKPIVJCVVJG%QORCP[ŏU %QPUVKVWVKQPRTQEGFWTGUCPFRQNKEKGUCPFTGIWNCVKQPUCTGEQORNKGFYKVJ6JG$QCTFKUTGIWNCTN[WRFCVGFD[VJG%QORCP[ 5GETGVCT[QPCP[PGYUVCVWVQT[CPFTGIWNCVQT[TGSWKTGOGPVUVJCVCHHGEVVJGFWVKGUCPFTGURQPUKDKNKVKGUQHVJG&KTGEVQTU6JG %QORCP[5GETGVCTKGUCVVGPFGFCNNVJG$QCTFOGGVKPIUCPF$QCTF%QOOKVVGGOGGVKPIUJGNFKPVJGſPCPEKCN[GCTGPFGF (GDTWCT[

6JG$QCTFKUUCVKUſGFYKVJVJGUGTXKEGUCPFUWRRQTVTGPFGTGFD[VJG%QORCP[5GETGVCTKGUKPVJGFKUEJCTIGQHVJGKTHWPEVKQPU

Board and Board Committees

6JG $QCTF JCU FGNGICVGF URGEKſE TGURQPUKDKNKVKGU VQ VJTGG   OCKP EQOOKVVGGU PCOGN[ VJG #WFKV CPF 4KUM /CPCIGOGPV %QOOKVVGG őARMCŒ 4GOWPGTCVKQP%QOOKVVGGCPF0QOKPCVKQP%QOOKVVGGYJKEJCTGIWKFGFD[VJGTGURGEVKXGVGTOUQH TGHGTGPEGCRRTQXGFD[VJG$QCTF6JGWNVKOCVGTGURQPUKDKNKV[HQTVJGſPCNFGEKUKQPUQPCNNOCVVGTUNKGUYKVJVJG$QCTF

Key Senior Management

6JG%'1CPFVJG'ZGEWVKXG&KTGEVQTCTGTGURQPUKDNGHQTVJGKFGPVKſECVKQPCPFFGXGNQROGPVQHVJGMG[UGPKQTOCPCIGOGPV CUYGNNCUVQTGXKGYVJGUWEEGUUKQPRNCPPKPIHQTMG[OCPCIGOGPVVGCOHTQOVKOGVQVKOG2QVGPVKCNECPFKFCVGUCTGKFGPVKſGF HTQOYKVJKPCPFQWVUKFGVJG)TQWRCPFITQQOGFVQUJQWNFGTJGCXKGTTGURQPUKDKNKVKGUKPFWGEQWTUG

Code of Conduct and Ethics for Directors, Whistle Blowing Policy and Anti-Bribery and Anti-Corruption Policy

6JG%QORCP[JCURWVKPRNCEGC%QFGQH%QPFWEVCPF'VJKEUHQT&KTGEVQTUYJKEJIQXGTPUVJGUVCPFCTFUQHGVJKEUCPFIQQF EQPFWEVGZRGEVGFQH&KTGEVQTU

6JG)TQWRŏU9JKUVNG$NQYKPI2QNKE[UGGMUVQHQUVGTCPGPXKTQPOGPVQHKPVGITKV[CPFGVJKECNDGJCXKQWTCPFVQGZRQUGCP[ KNNGICNQTKORTQRGTCEVKQPKPVJG)TQWR+PVJGſPCPEKCN[GCTGPFGF(GDTWCT[PQEQORNCKPVYCUTGEGKXGF

6JG/CNC[UKCP#PVK%QTTWRVKQP%QOOKUUKQP#EVYCUCOGPFGFKPVQKPEQTRQTCVG5GEVKQP#QPEQTRQTCVGNKCDKNKV[ HQTEQTTWRVKQPYJKEJVQQMGHHGEVQP,WPG6JGUCKFNCYRTQJKDKVUCEVUQHDTKDGT[CPFEQTTWRVKQPCPFOCPFCVGUEQORCPKGU VQGUVCDNKUJCPFOCKPVCKPCFGSWCVGRTQEGFWTGUVQRTGXGPVDTKDGT[CPFEQTTWRVKQP+PVJKUTGICTFVJG%QORCP[JCFQP,WN[ RWVKPRNCEGCP#PVK$TKDGT[CPF#PVK%QTTWRVKQP2QNKE[YJKEJIQXGTPUCNNHQTOUQHDTKDGT[CPFEQTTWRVKQPKPVJG)TQWR

6JG%QFGQH%QPFWEVCPF'VJKEUHQT&KTGEVQTU9JKUVNG$NQYKPI2QNKE[CPFVJG#PVK$TKDGT[CPF#PVK%QTTWRVKQP2QNKE[CTG RWDNKUJGFQPVJG%QORCP[ŏUYGDUKVGCVYYYGFWURGEEQOO[

Sustainability of Business

6JG$QCTFJCUHQTOCNKUGFCPFCFQRVGFC5WUVCKPCDKNKV[2QNKE[YJKEJKURQUVGFQPVJG%QORCP[ŏUYGDUKVGCVYYYGFWURGE EQOO[6JG5WUVCKPCDKNKV[2QNKE[UGVUQWVVJGOCPPGTKPYJKEJVJG)TQWRECTTKGUQPKVUDWUKPGUUYJKEJKUWPFGTVCMGPKPC UQEKCNN[TGURQPUKDNGVTWUVYQTVJ[CPFGVJKECNOCPPGTYJKNGCEEGRVKPICEEQWPVCDKNKV[HQTKORCEVQPGPXKTQPOGPVUQEKCNCPF IQXGTPCPEGHTQPVU-G[CURGEVUQHVJGRQNKE[HQEWUQPUQEKCNCYCTGPGUUCPFDGVVGTOGPVGPXKTQPOGPVCNRTGUGTXCVKQPCPF GHHGEVKXGEQTRQTCVGIQXGTPCPEG

'FWURGE*QNFKPIU$GTJCF (200401008252) 24 #PPWCN4GRQTV CORPORATE GOVERNANCE OVERVIEW STATEMENT (cont’d)

PRINCIPLE A : BOARD LEADERSHIP AND EFFECTIVENESS (cont’d)

I. BOARD RESPONSIBILITIES (cont’d)

Access to Information and Advice

#NNVJG&KTGEVQTUCTGUWRRNKGFYKVJCNNKPHQTOCVKQPYKVJKPVJG%QORCP[CPFVJG)TQWRKPCVKOGN[OCPPGT6JG%QORCP[ 5GETGVCT[WRQPVJGKPUVTWEVKQPQHVJG%'1YKNNRTGRCTGVJGCIGPFCCPFQTICPKUGVJGKPHQTOCVKQPTGNCVKPIVJGTGVQKPVJGDQCTF RCRGTUVQDGFGCNVYKVJCVVJG$QCTFOGGVKPIU6JGDQCTFRCRGTUCTGUGPVQWVVQCNN&KTGEVQTUPQVNGUUVJCPUGXGP  FC[UDGHQTG VJG$QCTFOGGVKPIU

6JGRTQEGGFKPIUQHCNN$QCTFOGGVKPIUCPF$QCTF%QOOKVVGGOGGVKPIUCTGOKPWVGFD[VJG%QORCP[5GETGVCT[HQTEQPſTOCVKQP CVVJGPGZVOGGVKPI

#NN&KTGEVQTUJCXGCEEGUUVQVJGUGTXKEGUCPFVJGCFXKEGQHVJG%QORCP[5GETGVCT[CPFRTQHGUUKQPCNCFXKEGHTQOVJKTFRCTVKGU 6JGPQPGZGEWVKXG&KTGEVQTUJCXGCEEGUUVQKPHQTOCVKQPHTQOVJGOCPCIGOGPV

II. BOARD COMPOSITION

6JGEWTTGPV$QCTFEQORTKUGUUGXGP  &KTGEVQTUKGſXG  +PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTUQPG  'ZGEWVKXG&KTGEVQT CPFQPG  'ZGEWVKXG&KTGEVQTYJQCNUQUGTXGUCUVJG%'16JG$QCTFOGODGTUCTGCUHQNNQYU

Name of Directors Directorship Mr Lim Een Hong %'1'ZGEWVKXG&KTGEVQT Dato’ Lee Chin Choong Executive Director &CVQŏ&T/QJF#TKHH$KP#TCHH Senior Independent Non-Executive Director 2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC Independent Non-Executive Director Mr Lim Thian Loong Independent Non-Executive Director Mr Su Keong Siong Independent Non-Executive Director Mr Chang Lih Kang Independent Non-Executive Director

6JGEQORQUKVKQPCPFUK\GQHVJG$QCTFKUTGXKGYGFHTQOVKOGVQ VKOGVQGPUWTGKVUCRRTQRTKCVGPGUUCPFGHHGEVKXGPGUU+P VJGGXGPVQHCP[XCECPE[KPVJG$QCTFTGUWNVKPIKPPQPEQORNKCPEGYKVJVJG#%'/CTMGV.KUVKPI4GSWKTGOGPV őAMLRŒ QH $WTUC/CNC[UKC5GEWTKVKGU$GTJCF őBursa SecuritiesŒ VJG$QCTFYQWNFGPUWTGVJCVVJGXCECPE[YKNNDGſNNGFYKVJKPVJTGG   OQPVJU

2WTUWCPVVQVJG%QORCP[ŏU%QPUVKVWVKQPCP[&KTGEVQTCRRQKPVGFFWTKPIVJG[GCTUJCNNTGVKTGCVVJG%QORCP[ŏU#PPWCN)GPGTCN /GGVKPI őAGMŒ HQNNQYKPIJKUCRRQKPVOGPVCPFQPGVJKTF  QHVJG$QCTFYJQFQPQVTGVKTGCUCHQTGUCKFYKNNTGVKTGD[ TQVCVKQPCVGXGT[#)/6JG%QPUVKVWVKQPHWTVJGTRTQXKFGUHQTGXGT[&KTGEVQTVQTGVKTGQPEGKPGXGT[VJTGG  ECNGPFCT[GCTU CPFCNNTGVKTKPI&KTGEVQTUCTGGNKIKDNGHQTTGGNGEVKQP6JG&KTGEVQTUUGGMKPITGGNGEVKQPCVVJGHQTVJEQOKPI#)/CTGUGVQWVQP RCIGUQHVJG#PPWCN4GRQTV

6JG$QCTFOGVHQWT  VKOGUFWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[&GVCKNUQHVJG&KTGEVQTUŏCVVGPFCPEGCTGCU HQNNQYU

Name of Directors Board Meetings Attended Mr Lim Een Hong  Dato’ Lee Chin Choong  &CVQŏ&T/QJF#TKHH$KP#TCHH  2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC  Mr Lim Thian Loong  Mr Su Keong Siong  Mr Chang Lih Kang 

'FWURGE*QNFKPIU$GTJCF (200401008252) 25 #PPWCN4GRQTV CORPORATE GOVERNANCE OVERVIEW STATEMENT (cont’d)

PRINCIPLE A : BOARD LEADERSHIP AND EFFECTIVENESS (cont’d)

II. BOARD COMPOSITION (cont’d)

Independence

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

6JG%QORCP[FQGUPQVJCXGCRQNKE[VQNKOKVVJGVGPWTGQH+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTUVQCEWOWNCVKXGVGTONKOKV QHPKPG  [GCTU*QYGXGTVJGTGVGPVKQPQH+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTUCHVGTUGTXKPICEWOWNCVKXGVGTOQHPKPG  [GCTUCTGUWDLGEVVQUJCTGJQNFGTUŏCRRTQXCNKPNKPGYKVJVJGTGEQOOGPFCVKQPQHVJG/%%)+HVJG$QCTFEQPVKPWGUVQ TGVCKP+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTUCHVGTVYGNXG  [GCTUVJG$QCTFUJQWNFRTQXKFGLWUVKſECVKQPCPFUGGMCPPWCN UJCTGJQNFGTUŏCRRTQXCNVJTQWIJCVYQVKGTXQVKPIRTQEGUU

6QFCVGQPG  QHVJG+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTU&CVQŏ&T/QJF#TKHH$KP#TCHH őDato’ AriffŒ JCUUGTXGFCU +PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTQHVJG%QORCP[HQTCEWOWNCVKXGVGTOQHOQTGVJCP[GCTUUKPEGJKUCRRQKPVOGPVCU &KTGEVQTQHVJG%QORCP[QP&GEGODGT&CVQŏ#TKHHJCUGZRTGUUGFJKUKPVGPVKQPVQUGGMTGCRRQKPVOGPVCU+PFGRGPFGPV 0QP'ZGEWVKXG&KTGEVQTQHVJG%QORCP[6JG0QOKPCVKQP%QOOKVVGGJCFCUUGUUGFVJGKPFGRGPFGPEGQH&CVQŏ#TKHHCPF TGEQOOGPFGFVQVJG$QCTFVJCV&CVQŏ#TKHHDGTGVCKPGFCPFUJCNNEQPVKPWGVQCEVCU+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTQH VJG%QORCP[DCUGFQPJKUCDKNKV[VQOCKPVCKPKPFGRGPFGPVLWFIGOGPVCPFVQGZRTGUUWPDKCUGFXKGYUYKVJQWVCP[KPƀWGPEG &CVQŏ#TKHHKUHCOKNKCTYKVJVJG)TQWRŏUDWUKPGUUQRGTCVKQPUCPFJCUFGXQVGFVKOGCPFEQOOKVOGPVCPFJCUGZGTEKUGFFWGECTG KPFKUEJCTIKPIJKUFWVKGUCPFTGURQPUKDKNKVKGUCU+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT&CVQŏ#TKHHJCUHWNſNNGFVJGETKVGTKCWPFGT VJGFGſPKVKQPQH+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTCUFGſPGFKPVJG#/.4QH$WTUC5GEWTKVKGU

Board Diversity

6JG$QCTFCEMPQYNGFIGUVJGKORQTVCPEGQHFKXGTUKV[KPVGTOUQHUMKNNUGZRGTKGPEGCIGIGPFGTEWNVWTCNDCEMITQWPFCPF GVJPKEKV[CPFTGEQIPKUGUVJGDGPGſVUQHFKXGTUKV[CVNGCFGTUJKRCPFGORNQ[GGNGXGN6JG&KTGEVQTUJCXGCFKXGTUGUGVQHUMKNNU GZRGTKGPEGCPFMPQYNGFIGPGEGUUCT[VQIQXGTPVJG)TQWR

#RRQKPVOGPV QH PGY &KTGEVQTU KU WPFGTVCMGP D[ VJG $QCTF CU C YJQNG CHVGT EQPUKFGTKPI VJG TGEQOOGPFCVKQPU HTQO VJG 0QOKPCVKQP %QOOKVVGG +P UGCTEJKPI HQT UWKVCDNG ECPFKFCVGU VJG 0QOKPCVKPI %QOOKVVGG OC[ TGEGKXG UWIIGUVKQPU HTQO GZKUVKPI$QCTFOGODGTUVJGOCPCIGOGPVCPFQTOCLQTUJCTGJQNFGTU6JG0QOKPCVKQP%QOOKVVGGKUCNUQQRGPVQTGHGTTCNU HTQOGZVGTPCNUQWTEGUUWEJCUKPFWUVT[CPFRTQHGUUKQPCNCUUQEKCVKQPUCUYGNNCUKPFGRGPFGPVUGCTEJſTOU&WTKPIVJGſPCPEKCN [GCTGPFGF(GDTWCT[VJGTGYCUPQCRRQKPVOGPVQHPGY&KTGEVQTVQVJG$QCTF

6JG$QCTFCEMPQYNGFIGUVJGECNND[VJG/%%)HQTDQCTFUVQJCXGIGPFGTFKXGTUKV[&WTKPIVJGſPCPEKCN[GCTGPFGF (GDTWCT[VJGTGYGTGUGXGP  OCNG&KTGEVQTUCPFPQHGOCNG&KTGEVQTUKPVJG$QCTF#NVJQWIJVJG%QORCP[FQGUPQV JCXGCHQTOCNKUGFRQNKE[QP$QCTFIGPFGTFKXGTUKV[VJGKUUWGQHFKXGTUKV[KUDGKPIFKUEWUUGFCPFIKXGPRTQOKPGPEGFWTKPI FGNKDGTCVKQPUD[VJG0QOKPCVKQP%QOOKVVGGCPFVJG$QCTF6JG$QCTFYKNNEQPVKPWGVQUQWTEGHQTUWKVCDNGHGOCNGECPFKFCVGU VQVJG$QCTF6JG$QCTFKUOKPFHWNVJCVCP[IGPFGTTGRTGUGPVCVKQPUJQWNFDGKPVJGDGUVKPVGTGUVQHVJG%QORCP[

Nomination Committee

6JGEWTTGPV0QOKPCVKQP%QOOKVVGGEQPUKUVUQHPQVNGUUVJCPVJTGG  OGODGTUCPFEQORTKUGUYJQNN[QH+PFGRGPFGPV0QP 'ZGEWVKXG&KTGEVQTU6JGOGODGTUQHVJG0QOKPCVKQP%QOOKVVGGCTGCUHQNNQYU

Name of Nomination Committee Members Position &CVQŏ&T/QJF#TKHH$KP#TCHH Chairman 2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC Member Mr Lim Thian Loong Member

'FWURGE*QNFKPIU$GTJCF (200401008252) 26 #PPWCN4GRQTV CORPORATE GOVERNANCE OVERVIEW STATEMENT (cont’d)

PRINCIPLE A : BOARD LEADERSHIP AND EFFECTIVENESS (cont’d)

II. BOARD COMPOSITION (cont’d)

Nomination Committee (cont’d)

6JG0QOKPCVKQP%QOOKVVGGKUTGURQPUKDNGHQTVJG$QCTFGXCNWCVKQPRTQEGUUEQXGTKPIVJG$QCTFVJG$QCTF%QOOKVVGGUCPF KPFKXKFWCN&KTGEVQTU6JG0QOKPCVKQP%QOOKVVGGWRQPEQPENWUKQPQHVJGGXCNWCVKQPEQPFWEVGFKPVGTPCNN[QP/C[ HQTVJGſPCPEKCN[GCTGPFGF(GDTWCT[YCUUCVKUſGFVJCVVJGEQORQUKVKQPQHVJG$QCTFCPF$QCTF%QOOKVVGGURQUUGUU CTKIJVDNGPFQHMPQYNGFIGGZRGTVKUGCPFGZRGTKGPEGCPFVJGCRRTQRTKCVGOKZQHUMKNNU+PCFFKVKQPVJGTGYCUOWVWCNTGURGEV COQPIUVKPFKXKFWCN&KTGEVQTUYJQEQPVTKDWVGFVQCJGCNVJ[GPXKTQPOGPVHQTEQPUVTWEVKXGFGNKDGTCVKQPCPFTQDWUVFGEKUKQP OCMKPIRTQEGUU

6JG 0QOKPCVKQP %QOOKVVGG OGV QPEG FWTKPI VJG ſPCPEKCN [GCT GPFGF  (GDTWCT[  6JG FGVCKNU QH VJG OGODGTUŏ CVVGPFCPEGCTGCUHQNNQYU

Nomination Committee Name of Nomination Committee Members Meetings Attended &CVQŏ&T/QJF#TKHH$KP#TCHH  2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC  Mr Lim Thian Loong 

6JGVGTOUQHTGHGTGPEGQHVJG0QOKPCVKQP%QOOKVVGGKUTGXKGYGFD[VJG$QCTFKPCEEQTFCPEGYKVJVJGPGGFUQHVJG)TQWR CPFKURWDNKUJGFQPVJG%QORCP[ŏUYGDUKVGCVYYYGFWURGEEQOO[

Remuneration Committee

6JGEWTTGPV4GOWPGTCVKQP%QOOKVVGGEQPUKUVUQHPQVNGUUVJCPVJTGG  OGODGTUCPFEQORTKUGUYJQNN[QH+PFGRGPFGPV0QP 'ZGEWVKXG&KTGEVQTU6JGOGODGTUQHVJG4GOWPGTCVKQP%QOOKVVGGCTGCUHQNNQYU

Name of Remuneration Committee Members Position 2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC Chairman &CVQŏ&T/QJF#TKHH$KP#TCHH Member Mr Lim Thian Loong Member

6JG%QORCP[JCU[GVVQRWVKPRNCEGCHQTOCNKUGFTGOWPGTCVKQPRQNKEKGUCPFRTQEGFWTGUHQT&KTGEVQTUCPFUGPKQTOCPCIGOGPV 6JGNGXGNQHTGOWPGTCVKQPHQT0QP'ZGEWVKXG&KTGEVQTUCPFUGPKQTOCPCIGOGPVTGƀGEVVJGCOQWPVRCKFD[QVJGTEQORCTCDNG QTICPKUCVKQPUCFLWUVGFDCUGFQPVJGGZRGTKGPEGCPFNGXGNQHTGURQPUKDKNKVKGUWPFGTVCMGPD[VJG0QP'ZGEWVKXG&KTGEVQTCPF UGPKQTOCPCIGOGPVEQPEGTPGF

6JGTGOWPGTCVKQPRCEMCIGQH0QP'ZGEWVKXG&KTGEVQTUUJCNNHTQOVKOGVQVKOGDGTGXKGYGFD[VJG4GOWPGTCVKQP%QOOKVVGG CPFYKNNDGCOCVVGTVQDGFGNKDGTCVGFD[VJG$QCTFYKVJVJG&KTGEVQTEQPEGTPGFCDUVCKPKPIHTQOFGNKDGTCVKQPUCPFXQVKPIKP TGURGEVQHJKUJGTTGOWPGTCVKQP6JGCIITGICVGCPPWCN&KTGEVQTUŏHGGUCPFQVJGTDGPGſVURC[CDNGCTGVQDGCRRTQXGFD[VJG UJCTGJQNFGTUCVVJG#)/DCUGFQPVJGTGEQOOGPFCVKQPUQHVJG$QCTF

6JGTGOWPGTCVKQPQHVJGUGPKQTOCPCIGOGPVUJCNNHTQOVKOGVQVKOGDGFGVGTOKPGFD[VJG%'1CPF'ZGEWVKXG&KTGEVQTCPFVQ DGTGXKGYGFD[VJG0QP'ZGEWVKXG&KTGEVQTUKHPGEGUUCT[YKVJCXKGYVQGPUWTGVJCVVJG%QORCP[QHHGTUHCKTEQORGPUCVKQP CPFKUCDNGVQCVVTCEVCPFTGVCKPVCNGPVYJQECPCFFXCNWGVQVJG%QORCP[

6JGCPPWCNTGXKGYHQTVJGſPCPEKCN[GCTGPFGF(GDTWCT[YCUEQPFWEVGFD[VJG4GOWPGTCVKQP%QOOKVVGGQP,WN[ 

'FWURGE*QNFKPIU$GTJCF (200401008252) 27 #PPWCN4GRQTV CORPORATE GOVERNANCE OVERVIEW STATEMENT (cont’d)

PRINCIPLE A : BOARD LEADERSHIP AND EFFECTIVENESS (cont’d)

II. BOARD COMPOSITION (cont’d)

Remuneration Committee (cont’d)

6JG4GOWPGTCVKQP%QOOKVVGGOGVQPEGFWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[6JGFGVCKNUQHVJGOGODGTUŏ CVVGPFCPEGCTGCUHQNNQYU Remuneration Committee Name of Remuneration Committee Members Meetings Attended 2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC  &CVQŏ&T/QJF#TKHH$KP#TCHH  Mr Lim Thian Loong 

6JGVGTOUQHTGHGTGPEGQHVJG4GOWPGTCVKQP%QOOKVVGGKUTGXKGYGFD[VJG$QCTFKPCEEQTFCPEGYKVJVJGPGGFUQHVJG)TQWR CPFKURWDNKUJGFQPVJG%QORCP[ŏUYGDUKVGCVYYYGFWURGEEQOO[

Directors’ Training

6JG$QCTFKUTGURQPUKDNGVQGPUWTGEQPVKPWKPIGFWECVKQPQTVTCKPKPIHQTVJG&KTGEVQTUVQMGGRCDTGCUVQHTGNGXCPVEJCPIGUKP NCYUCPFTGIWNCVKQPUCPFVJGFGXGNQROGPVQHVJGKPFWUVT[

&WTKPI VJG ſPCPEKCN [GCT GPFGF  (GDTWCT[  VJG GZVGTPCN CWFKVQTU DTKGHGF CNN VJG $QCTF /GODGTU QP EJCPIGU VQ VJG /CNC[UKCP (KPCPEKCN 4GRQTVKPI 5VCPFCTFU VJCV CHHGEVU VJG )TQWRŏU ſPCPEKCN UVCVGOGPVU FWTKPI VJG ſPCPEKCN [GCT 6JG $QCTFKUCNUQDTKGHGFD[VJG%QORCP[5GETGVCT[QPEJCPIGUKPNCYUCPFTGIWNCVKQPU6JGFKTGEVQT&CVQŏ&T/QJF#TKHH$KP #TCHHJCUCVVGPFGFVTCKPKPIUQP$WUKPGUUKPVJG0GZV&GECFG7UKPI+6#+YKVJ5RGEKCN4GHGTGPEGVQ(KPCN'PVGTRTKUGUCPF (WVWTG$WUKPGUU2TQURGEVKXG7UKPI)6JGFKTGEVQT/T.KO6JKCP.QQPIJCUCVVGPFGFVTCKPKPIQP6JG'EQPQO[$G[QPIVJG 2CPFGOKE6JGFKTGEVQTUYKNNEQPVKPWGVQWPFGTIQTGNGXCPVVTCKPKPIRTQITCOOGUVQGPJCPEGVJGKTUMKNNUCPFMPQYNGFIG

III REMUNERATION

 6JGFGVCKNUQHVJG&KTGEVQTUŏTGOWPGTCVKQPHQTVJGſPCPEKCN[GCTGPFGF(GDTWCT[CTGCUHQNNQYU

COMPANY :

(a) Non-Executive Directors (RM) No. Name Director’s Fees Total  &CVQŏ&T/QJF#TKHH$KP#TCHH 5GPKQT+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT    2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC +PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT    Mr Lim Thian Loong +PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT    Mr Su Keong Siong +PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT    Mr Chang Lih Kang +PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT  

(b) CEO / Executive Director (RM) No. Name Salaries AllowancesTotal  Mr Lim Een Hong %'1'ZGEWVKXG&KTGEVQT     Dato’ Lee Chin Chong 'ZGEWVKXG&KTGEVQT  0 

'FWURGE*QNFKPIU$GTJCF (200401008252) 28 #PPWCN4GRQTV CORPORATE GOVERNANCE OVERVIEW STATEMENT (cont’d)

PRINCIPLE A : BOARD LEADERSHIP AND EFFECTIVENESS (cont’d)

III REMUNERATION (cont’d)

GROUP :

(a) Non-Executive Directors (RM) No. Name Director’s Fees Total  &CVQŏ&T/QJF#TKHH$KP#TCHH 5GPKQT+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT    2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC +PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT    Mr Lim Thian Loong +PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT    Mr Su Keong Siong +PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT    Mr Chang Lih Kang +PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT  

(b) CEO / Executive Director (RM) No. Name Salaries AllowancesTotal  Mr Lim Een Hong %'1'ZGEWVKXG&KTGEVQT     Dato’ Lee Chin Chong 'ZGEWVKXG&KTGEVQT  0 

 6JG $QCTF KU QH VJG QRKPKQP VJCV VJG FKUENQUWTG QH VJG PCOGU QH VJG UGPKQT OCPCIGOGPV RGTUQPPGN CPF VJG XCTKQWU TGOWPGTCVKQPEQORQPGPVU UCNCT[DQPWUDGPGſVUKPMKPFQVJGTGOQNWOGPVU KPVJGDCPFUQH4/YQWNFPQVDG KPVJGDGUVKPVGTGUVQHVJG)TQWRFWGVQEQPſFGPVKCNKV[KPENWFKPITGCUQPURGTVCKPKPIVQJWOCPTGNCVKQPU0QGZEGUUKXG TGOWPGTCVKQPJCUDGGPRCKFVQUGPKQTOCPCIGOGPVRGTUQPPGNKPCP[KPUVCPEGHQTVJGſPCPEKCN[GCTGPFGF(GDTWCT[ 

PRINCIPLE B : EFFECTIVE AUDIT AND RISK MANAGEMENT

I. AUDIT AND RISK MANAGEMENT COMMITTEE

Composition of ARMC

6JG$QCTFJCFQP,CPWCT[TGUQNXGFVQJCXGVJGTKUMOCPCIGOGPVQHVJG%QORCP[VQDGWPFGTVJGRWTXKGYQHVJG #WFKV%QOOKVVGGKPXKGYQHVJG%QORCP[ŏUEWTTGPVTKUMGZRQUWTG6JG#WFKV%QOOKVVGGYCUVJGPTGPCOGFVJG#WFKVCPF4KUM /CPCIGOGPV%QOOKVVGG

6JG#4/%CUUWOGUVJGTQNGKPQXGTUGGKPIVJGTKUMOCPCIGOGPVHWPEVKQPUCPFKPVGTPCNEQPVTQNUQHVJG)TQWRKPCFFKVKQPVQ QXGTUGGKPIVJGKPVGITKV[QHVJGſPCPEKCNUVCVGOGPVUCPFEQORNKCPEGYKVJTGNGXCPVCEEQWPVKPIUVCPFCTFU

6JGEWTTGPV#4/%EQORTKUGUVJTGG  OGODGTUCNNQHYJQOCTG+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTU6JGOGODGTUQHVJG #4/%CTGCUHQNNQYU

Name of ARMC Members Position &CVQŏ&T/QJF#TKHH$KP#TCHH Chairman 2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC Member Mr Lim Thian Loong Member

6JG%JCKTOCPQHVJG#4/%KUPQVVJG%JCKTOCPQHVJG$QCTF6JG#4/%KUDGKPIEJCKTGFD[VJG5GPKQT+PFGRGPFGPV0QP 'ZGEWVKXG&KTGEVQT&CVQŏ&T/QJF#TKHH$KP#TCHH1PG  QHVJG#4/%OGODGTUKUCOGODGTQHVJG/CNC[UKCP+PUVKVWVGQH #EEQWPVCPVUVJWUHWNſNNKPI4WNG  E QHVJG#/.4QH$WTUC5GEWTKVKGUYJKEJTGSWKTGUCVNGCUVQPG  OGODGTQHVJG CWFKVEQOOKVVGGVQDGCOGODGTQHCRTQHGUUKQPCNCEEQWPVCPE[DQF[

'FWURGE*QNFKPIU$GTJCF (200401008252) 29 #PPWCN4GRQTV CORPORATE GOVERNANCE OVERVIEW STATEMENT (cont’d)

PRINCIPLE B : EFFECTIVE AUDIT AND RISK MANAGEMENT (cont’d)

I. AUDIT AND RISK MANAGEMENT COMMITTEE (cont’d)

Composition of ARMC (cont’d)

6JG#4/%OGVHQWT  VKOGUFWTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[&GVCKNUQHVJGPWODGTQHOGGVKPIUCVVGPFGF D[GCEJOGODGTCTGCUHQNNQYU

Name of ARMC Members ARMC Meetings Attended &CVQŏ&T/QJF#TKHH$KP#TCHH  2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC  Mr Lim Thian Loong 

6JGVGTOUQHTGHGTGPEGQHVJG#4/%KUTGXKGYGFD[VJG$QCTFKPCEEQTFCPEGYKVJVJGPGGFUQHVJG)TQWRCPFKURWDNKUJGFQP the Company’s website at YYYGFWURGEEQOO[

Relationship with the External Auditors

6JG#4/%JCUCHQTOCNCPFVTCPURCTGPVTGNCVKQPUJKRYKVJVJGGZVGTPCNCWFKVQTU&WTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[  VJG #4/% OGV YKVJ VJG GZVGTPCN CWFKVQTU /GUUTU 7*; VYKEG KP VJG CDUGPEG QH VJG 'ZGEWVKXG &KTGEVQTU CPF VJG OCPCIGOGPVQP1EVQDGTCPF,CPWCT[

6JG #4/% GZGTEKUGU RTQHGUUKQPCN QXGTUKIJV QH VJG KPVGITKV[ QH VJG ſPCPEKCN UVCVGOGPVU CPF TGRQTVU DGHQTG RTGUGPVKPI VJG ſPCPEKCNUVCVGOGPVUCPFTGRQTVUVQVJG$QCTFHQTCRRTQXCN6JG#4/%CNUQRTQXKFGUCUUWTCPEGVQVJG$QCTFYKVJUWRRQTVCPF ENCTKſECVKQPUHTQOVJGGZVGTPCNCWFKVQTUVJCVVJGſPCPEKCNUVCVGOGPVUCPFTGRQTVURTGUGPVGFCTGKPEQORNKCPEGYKVJCRRNKECDNG NCYUCPFCEEQWPVKPIUVCPFCTFUCPFIKXGCVTWGCPFHCKTXKGYQHVJG)TQWRŏURGTHQTOCPEGCPFſPCPEKCNRQUKVKQP

6JG%QORCP[TGEQIPKUGUVJGPGGFVQWRJQNFVJGKPFGRGPFGPEGQHKVUGZVGTPCNCWFKVQTUCPFVJCVPQRQUUKDNGEQPƀKEVQHKPVGTGUV YJCVUQGXGTUJQWNFCTKUG6JG#4/%JCUKPEQTRQTCVGFCRQNKE[URGEKſECVKQPVJCVIQXGTPUVJGCRRQKPVOGPVQHCHQTOGTMG[ CWFKVRCTVPGTVQVJG#4/%6JGRQNKE[YJKEJKUEQFKſGFKPVJG#4/%ŏUVGTOUQHTGHGTGPEGTGSWKTGUCHQTOGTMG[CWFKVRCTVPGT VQQDUGTXGCEQQNKPIQHHRGTKQFQHCVNGCUVVYQ  [GCTUDGHQTGJGECPDGEQPUKFGTGFHQTCRRQKPVOGPVCUCOGODGTQHVJG #4/%#VRTGUGPVPQPGQHVJG#4/%OGODGTUCTGHQTOGTMG[CWFKVRCTVPGTUQHVJGGZVGTPCNCWFKVQTUCRRQKPVGFD[VJG)TQWR

6JG #4/% YCU UCVKUſGF YKVJ VJG UWKVCDKNKV[ QH VJG GZVGTPCN CWFKVQTU /GUUTU 7*; DCUGF QP VJG SWCNKV[ QH UGTXKEGU CPF UWHſEKGPE[QHTGUQWTEGURTQXKFGFD[VJGOVQVJG)TQWRKPVGTOUQHVJGſTOCPFVJGRTQHGUUKQPCNUVCHHCUUKIPGFVQVJGCWFKV+P XKGYQHVJGCDQXGVJG#4/%TGEQOOGPFUVQVJG$QCTFVJGTGCRRQKPVOGPVQH/GUUTU7*;CUVJGCWFKVQTUQHVJG%QORCP[ YJKEJKUUWDLGEVVQCRRTQXCNQHUJCTGJQNFGTUCVVJG#)/YJKNUVVJGKTTGOWPGTCVKQPKUFGVGTOKPGFD[VJG$QCTF

6JG#4/%GPUWTGUVJCVVJGGZVGTPCNCWFKVQTUCTGKPFGRGPFGPVQHVJGCEVKXKVKGUVJG[CWFKVCPFTGXKGYUVJGEQPVTCEVUHQTPQP CWFKVUGTXKEGUD[VJGGZVGTPCNCWFKVQTU&WTKPIVJGſPCPEKCN[GCTGPFGF(GDTWCT[VJGCOQWPVQHPQPCWFKVHGGURCKF VQGZVGTPCNCWFKVQTUYCU4/

Directors’ Responsibilities Statement

 6JG&KTGEVQTUCTGTGSWKTGFD[VJG%QORCPKGU#EVVQRTGRCTGVJGſPCPEKCNUVCVGOGPVUHQTGCEJſPCPEKCN[GCTYJKEJIKXGU CVTWGCPFHCKTXKGYQHVJGUVCVGQHCHHCKTUQHVJG%QORCP[CPFQHVJG)TQWRCVVJGGPFQHVJGſPCPEKCN[GCT6JG&KTGEVQTUCTG UCVKUſGFVJCVKPRTGRCTKPIVJGſPCPEKCNUVCVGOGPVUHQTVJGſPCPEKCN[GCTGPFGF(GDTWCT[VJG&KTGEVQTUJCXGGPUWTGF VJCVCRRNKECDNGCRRTQXGFCEEQWPVKPIUVCPFCTFUKP/CNC[UKCCPFVJGRTQXKUKQPUQHVJG%QORCPKGU#EVJCXGDGGPCRRNKGF

'FWURGE*QNFKPIU$GTJCF (200401008252) 30 #PPWCN4GRQTV CORPORATE GOVERNANCE OVERVIEW STATEMENT (cont’d)

PRINCIPLE B : EFFECTIVE AUDIT AND RISK MANAGEMENT (cont’d)

II. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK

 6JG#4/%CUUKUVUVJG$QCTFKPOCKPVCKPKPICUQWPFCPFGHHGEVKXGU[UVGOQHTKUMOCPCIGOGPVCPFKPVGTPCNEQPVTQNVQUCHGIWCTF UJCTGJQNFGTUŏKPXGUVOGPVCPFVJG)TQWRŏUCUUGVUCUYGNNCUTGXKGYKPIVJGCFGSWCE[CPFGHHGEVKXGPGUUQHVJGUGU[UVGOUVQ UWRRQTVVJG)TQWRŏUUVTCVGI[CPFQRGTCVKQPUVQCEJKGXGKVUDWUKPGUUQDLGEVKXGU

 6JG'ZGEWVKXG&KTGEVQTUCPFVJGUGPKQTOCPCIGOGPVCTGTGURQPUKDNGHQTVJGKFGPVKſECVKQPCPFGXCNWCVKQPQHMG[TKUMUCRRNKECDNG VQVJG)TQWRŏUDWUKPGUUCEVKXKVKGUQPCEQPVKPWQWUDCUKU4KUMUKFGPVKſGFCTGTGRQTVGFQPCVKOGN[OCPPGTFWTKPIVJGRGTKQFKE OCPCIGOGPVOGGVKPIUCPFKURGTKQFKECNN[WRFCVGFVQVJG#4/%6JG#4/%TGXKGYUVJGTKUMUKFGPVKſGFTGIWNCTN[CPFGPUWTG EQTTGEVKXGCEVKQPUCTGVCMGP

 6JG)TQWRJCFQWVUQWTEGFKVUKPVGTPCNCWFKVHWPEVKQPVQCPKPFGRGPFGPVEQPUWNVKPIEQORCP[CURCTVQHKVUUVTCVGI[VQCUUWTG VJG$QCTFQPKVUCFGSWCE[CPFGHHGEVKXGPGUUQHVJGKPVGTPCNEQPVTQNU[UVGOQHVJG)TQWR6JGRTQHGUUKQPCNEQORCP[YKNNECTT[ QWVKPVGTPCNCWFKVUVQTGXKGYVJGCFGSWCE[CPFGHHGEVKXGPGUUQHVJGKPVGTPCNEQPVTQNU[UVGOCPFVQKFGPVKH[CTGCUQHTKUMUCPF TGRQTVVJGKTſPFKPIUCPFTGEQOOGPFCVKQPUVQVJG#4/%CPFUWDUGSWGPVN[VQVJG$QCTFD[VJG#4/%%JCKTOCP6JG$QCTF KUQHVJGXKGYVJCVVJGU[UVGOQHKPVGTPCNEQPVTQNCPFTKUMOCPCIGOGPVCTGKPRNCEGCPFUWHſEKGPVKPUCHGIWCTFKPIVJG)TQWRŏU CUUGVUCPFUJCTGJQNFGTUŏKPXGUVOGPVCPFKPVGTGUVQHCNNUVCMGJQNFGTU

 6JG5VCVGOGPVQP4KUM/CPCIGOGPVCPF+PVGTPCN%QPVTQNYJKEJRTQXKFGUCPQXGTXKGYQPVJGUVCVGQHTKUMOCPCIGOGPVCPF KPVGTPCNEQPVTQNQHVJG)TQWRKUUGVQWVQPRCIGQHVJG%QORCP[ŏU#PPWCN4GRQTV

PRINCIPLE C : INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS

I. COMMUNICATION WITH STAKEHOLDERS

 6JG$QCTFDGNKGXGUVJCVCEQPUVTWEVKXGCPFGHHGEVKXGKPXGUVQTTGNCVKQPUJKRKUGUUGPVKCNKPGPJCPEKPIUJCTGJQNFGTUŏXCNWGCPF TGEQIPKUGUVJGKORQTVCPEGQHVKOGN[FKUUGOKPCVKQPQHKPHQTOCVKQPUJCTGJQNFGTUQTUVCMGJQNFGTU

 6JG%QORCP[CKOUVQGPUWTGVJCVUJCTGJQNFGTUCPFKPXGUVQTUCTGMGRVKPHQTOGFQHCNNOCLQTEQTRQTCVGFGXGNQROGPVUſPCPEKCN RGTHQTOCPEG CPF QVJGT TGNGXCPV KPHQTOCVKQP D[ RTQORVN[ FKUUGOKPCVKPI UWEJ KPHQTOCVKQP VQ VJGO XKC CPPQWPEGOGPVU VQ $WTUC5GEWTKVKGUYJKEJKUKPNKPGYKVJ$WTUC5GEWTKVKGUŏQDLGEVKXGUQHGPUWTKPIVTCPURCTGPE[CPFIQQFEQTRQTCVGIQXGTPCPEG RTCEVKEGU

 6JG)TQWRCNUQNGXGTCIGUQPCPWODGTQHQVJGTHQTOCNEJCPPGNUHQTGHHGEVKXGFKUUGOKPCVKQPQHKPHQTOCVKQPVQUJCTGJQNFGTU CPFKPXGUVQTURCTVKEWNCTN[VJTQWIJVJGCPPWCNTGRQTVOGFKCTGNGCUGUSWCTVGTN[TGUWNVU#)/CPFVJG%QORCP[ŏUYGDUKVGCV YYYGFWURGEEQOO[

II. CONDUCT OF GENERAL MEETINGS

 6JG)TQWRKUQHVJGXKGYVJCVIGPGTCNOGGVKPIUCTGCPKORQTVCPVRNCVHQTOVQGPICIGYKVJKVUUJCTGJQNFGTUCPFVQCFFTGUUVJGKT EQPEGTPU6QGPUWTGGHHGEVKXGRCTVKEKRCVKQPQHCPFGPICIGOGPVYKVJUJCTGJQNFGTUCVVJGth#)/QHVJG%QORCP[JGNFQP #WIWUVCNN$QCTFOGODGTUYGTGRTGUGPVCVVJGOGGVKPIVQTGURQPFVQVJGSWGUVKQPUTCKUGFD[VJGUJCTGJQNFGTUQTRTQZKGU 6JG%JCKTOCPCPFOGODGTUQHVJG$QCTFCPF$QCTF%QOOKVVGGUVJG%QORCP[5GETGVCT[CPFVJGUGPKQTOCPCIGOGPVYGTG RTGUGPVVQTGURQPFVQSWGUVKQPUHTQOVJGUJCTGJQNFGTU6JGGZVGTPCNCWFKVQTUYGTGCNUQRTGUGPVVQRTQXKFGVJGKTRTQHGUUKQPCN CPFKPFGRGPFGPVENCTKſECVKQPQPVJGEQPFWEVQHVJGCWFKVCPFEQPVGPVUQHVJGCWFKVTGRQTV

The Chairman chaired the 16th#)/KPCPQTFGTN[OCPPGTCPFCNNQYGFVJGUJCTGJQNFGTUQTRTQZKGUVQURGCMCVVJGOGGVKPI The voting at the 16th#)/YCUEQPFWEVGFD[YC[QHOCPWCNRQNNKPI

 6JKU%QTRQTCVG)QXGTPCPEG1XGTXKGY5VCVGOGPVYCUCRRTQXGFD[VJG$QCTFQP,WPG

'FWURGE*QNFKPIU$GTJCF (200401008252) 31 #PPWCN4GRQTV ADDITIONAL COMPLIANCE INFORMATION

1. UTILISATION OF PROCEEDS

 +PNKPGYKVJVJGCRRTQXCNQPVJGHQNNQYKPIGZGTEKUGQP#WIWUV

Proposed Issuance of RCPS

 4/OKNNKQPKPVQVCNYCUTCKUGFCTKUKPIVJGTGHTQOCPFVJGUVCVWUQHVJGWVKNKUCVKQPQHRTQEGGFUWRVQ(GDTWCT[ YGTGCUHQNNQY

Amended Expected time proposed frame for utilisation Proceeds utilisation upon of proceeds Raised Utilisation Balance Proposed Utilisation receipt (RM’000) (RM’000) (RM’000) (RM ‘000) Expenditures for STEM EduPark 9KVJKP[GCTU     'ZRGPFKVWTGUHQTƀCIUJKR56'/'FW.CD 9KVJKP[GCTU    82 and STEM Learning Centre 9QTMKPIECRKVCNHQTVJG)TQWRGZKUVKPI 9KVJKP[GCTU    - business Part repayment of bank borrowings 9KVJKP[GCT    - 'UVKOCVGFGZRGPUGUTGNCVKPIVQ2TQRQUCNU 9KVJKP[GCTU     57,500 46,500 41,297 5,203

2. AUDIT AND NON-AUDIT FEES

 6JG)TQWRŏUCWFKVCPFPQPCWFKVHGGURCKFVQVJG'ZVGTPCN#WFKVQTUQTVJGKTCHſNKCVGUHQTVJGſPCPEKCN[GCTGPFGF(GDTWCT[ YGTG4/CPF4/TGURGEVKXGN[

3. RECURRENT RELATED PARTY TRANSACTIONS OF REVENUE OR TRADING NATURE

 6JGTGYCUPQTGEWTTGPVTGNCVGFRCTV[VTCPUCEVKQPQHCTGXGPWGQTVTCFKPIPCVWTGOCFGFWTKPIVJGſPCPEKCN[GCTGPFGF (GDTWCT[

4. MATERIAL CONTRACTS

 6JGTGYGTGPQOCVGTKCNEQPVTCEVUGPVGTGFKPVQD[VJG)TQWRKPXQNXKPI&KTGEVQTUCPFUWDUVCPVKCNUJCTGJQNFGTUGKVJGTUVKNN UWDUKUVKPICVVJGGPFQHVJGſPCPEKCN[GCTGPFGF(GDTWCT[QTGPVGTGFKPVQUKPEGVJGGPFQHVJGRTGXKQWUſPCPEKCN[GCT

5. REVALUATION OF LANDED PROPERTIES

 6JG)TQWRFQGUPQVJCXGCTGXCNWCVKQPRQNKE[CUKVFQGUPQVQYPCP[NCPFGFRTQRGTVKGU

'FWURGE*QNFKPIU$GTJCF (200401008252) 32 #PPWCN4GRQTV STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

INTRODUCTION

6JG$QCTFQH&KTGEVQTU őthe BoardŒ QH'FWURGE*QNFKPIU$GTJCF őthe CompanyŒ KURNGCUGFVQRTGUGPVVJG5VCVGOGPVQP4KUM /CPCIGOGPVCPF+PVGTPCN%QPVTQNYJKEJQWVNKPGUVJGPCVWTGCPFUEQRGQHTKUMOCPCIGOGPVCPFVJGKPVGTPCNEQPVTQNU[UVGOUQH 'FWURGE*QNFKPIU$GTJCFCPFKVUUWDUKFKCTKGU őthe GroupŒ HQTVJGſPCPEKCN[GCTGPFGF(GDTWCT[RWTUWCPVVQ2CTCITCRJ  D QHVJG#%'/CTMGV.KUVKPI4GSWKTGOGPVUQH$WTUC/CNC[UKC5GEWTKVKGU$GTJCF őAMLRŒ /CNC[UKCP%QFGQP%QTRQTCVG )QXGTPCPEG őMCCG 2017Œ CPFő5VCVGOGPVQP+PVGTPCN%QPVTQNCPF4KUM/CPCIGOGPV)WKFGNKPGUHQT&KTGEVQTUQH.KUVGF +UUWGTUŒ

RESPONSIBILITY FOR RISK MANAGEMENT AND INTERNAL CONTROLS

6JG $QCTF CHſTOU KVU QXGTCNN TGURQPUKDKNKV[ HQT OCKPVCKPKPI C U[UVGO QH TKUM OCPCIGOGPV CPF KPVGTPCN EQPVTQNU VQ UCHGIWCTF UJCTGJQNFGTUŏKPXGUVOGPVUCPFVJG)TQWRŏUCUUGVU6JG$QCTFEQPſTOUVJCVVJGTGKUCPWPFGTN[KPICPFQPIQKPIRTQEGUUKPVJG )TQWRHQTVJGKFGPVKſECVKQPGXCNWCVKQPCPFOKVKICVKQPQHKVUUKIPKſECPVTKUMU6JGU[UVGOQHKPVGTPCNEQPVTQNKPENWFGUIQXGTPCPEG TKUMOCPCIGOGPVſPCPEKCNQTICPK\CVKQPCNQRGTCVKQPCNCPFEQORNKCPEGEQPVTQN&WGVQVJGNKOKVCVKQPUKPJGTGPVKPCP[U[UVGOQH TKUMOCPCIGOGPVCPFKPVGTPCNEQPVTQNUVJG)TQWRŏUU[UVGOQHKPVGTPCNEQPVTQNKUFGUKIPGFVQOCPCIGTCVJGTVJCPVQGNKOKPCVGVJG TKUMQHHCKNWTGVQCEJKGXGEQTRQTCVGQDLGEVKXGU#EEQTFKPIN[VJGU[UVGOUECPQPN[RTQXKFGTGCUQPCDNGDWVPQVCDUQNWVGCUUWTCPEG CICKPUVOCVGTKCNOKUUVCVGOGPVQTNQUU

6JG$QCTFJCUWPFGTVCMGPCTGXKGYQHVJGCFGSWCE[CPFGHHGEVKXGPGUUQHVJGTKUMOCPCIGOGPVCPFKPVGTPCNEQPVTQNU[UVGOCPF EQPENWFGF VJCV VJG TKUM OCPCIGOGPV CPF KPVGTPCN EQPVTQN U[UVGO KU CFGSWCVG CPF GHHGEVKXG (WTVJGT VJG $QCTF JCU QDVCKPGF CUUWTCPEG HTQO VJG %JKGH 'ZGEWVKXG 1HſEGT CPF %JKGH (KPCPEG 1HſEGT VJCV VJG )TQWRŏU TKUM OCPCIGOGPV CPF KPVGTPCN EQPVTQN U[UVGOKUQRGTCVKPICFGSWCVGN[CPFGHHGEVKXGN[KPCNNOCVGTKCNCURGEVUDCUGFQPVJGTKUMOCPCIGOGPVCPFKPVGTPCNEQPVTQNU[UVGO QHVJG)TQWR

RISK MANAGEMENT

6JG$QCTFTGEQIPKUGUVJCVTKUMOCPCIGOGPVKUCPKPVGITCNRCTVQHVJG)TQWRŏUDWUKPGUUQRGTCVKQPUCPFJCURWVKPRNCEGVJG4KUM /CPCIGOGPV (TCOGYQTM YKVJKP VJG )TQWR CU CP QPIQKPI RTQEGUU HQT KFGPVKH[KPI GXCNWCVKPI OQPKVQTKPI CPF OCPCIKPI VJG UKIPKſECPVTKUMCHHGEVKPIVJGCEJKGXGOGPVQHKVUDWUKPGUUQDLGEVKXGU6QVJKUGPFVJG$QCTFJCUHQTOCNKUGFC4KUM/CPCIGOGPV (TCOGYQTMD[KORNGOGPVKPICPQPIQKPIRTQEGUUQHKFGPVKH[KPIGXCNWCVKPIOQPKVQTKPICPFOCPCIKPIVJGUKIPKſECPVTKUMUCHHGEVKPI VJGCEJKGXGOGPVQHKVUDWUKPGUUQDLGEVKXGUCPFJCUVCMGPKPVQCEEQWPVVJGIWKFCPEGQHVJG/CNC[UKCP%QFGQP%QTRQTCVG)QXGTPCPEG

6JG#4/%EQPUKUVUQH&CVQŏ&T/QJF#TKHH$KP#TCHH2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJCCPF/T.KO6JKCP.QQPI

4KUM2TQſNGEQPUKUVUQHRTKPEKRCNDWUKPGUUTKUMUVJCVCTGKFGPVKſGFCPFFQEWOGPVGFKPVJG4GIKUVT[QH4KUM6JG4GIKUVT[QH4KUM KFGPVKſGFVJGTKUMHCEVQTUUVCVGOGPVQHTKUMTKUMQYPGTKORCEVNKMGNKJQQFCPFTKUMEQPVTQNCEVKQPU6JGOCPCIGOGPVQHTKUMUKPVJG FCKN[DWUKPGUUQRGTCVKQPKUCUUKIPGFVQVJGOCPCIGOGPVVGCOCPFUKIPKſECPVTKUMUCTGKFGPVKſGFCPFTGNCVGFOKVKICVKPITGURQPUGUCU YGNNCUVJGEQTTGURQPFKPIKPVGTPCNEQPVTQNOGCUWTGU

6JGTKUMKFGPVKſECVKQPRTQEGUUGUKPXQNXGTGXKGYKPICPFKFGPVKH[KPIVJGRQUUKDNGTKUMGZRQUWTGCTKUKPIHTQOEJCPIGUKPDQVJVJG GZVGTPCNDWUKPGUUGPXKTQPOGPVCPFKPVGTPCNQRGTCVKPIEQPFKVKQPU6JGTKUMOGCUWTGOGPVIWKFGNKPGUEQPUKUVQHſPCPEKCNCPFPQP ſPCPEKCNSWCNKVCVKXGOGCUWTGUQHTKUMEQPUGSWGPEGUDCUGFQPVJGTKUMNKMGNKJQQFTCVKPICPFTKUMKORCEVTCVKPI6JGTKUMEQPVTQN CEVKQPUCTGRTKQTKVK\GFCPFKORNGOGPVGFCURGTVJGTKUMEQPVTQNCEVKQPUCUUKIPGFVQVJGTGURGEVKXGTKUMQYPGTU

6JG$QCTFQH&KTGEVQTUKUQHVJGXKGYVJCVVJGTGKUCPQPIQKPIRTQEGUUHQTKFGPVKH[KPIGXCNWCVKPIOQPKVQTKPICPFOCPCIKPIVJG UKIPKſECPVTKUMUCHHGEVKPIVJGCEJKGXGOGPVQHKVUDWUKPGUUQDLGEVKXGUKPKVUFCKN[CEVKXKVKGUVJTQWIJQWVVJGſPCPEKCN[GCTCPFWRVQ VJGFCVGQHCRRTQXCNQHVJKUUVCVGOGPV

INTERNAL AUDIT FUNCTION

6JG)TQWRKPKVUGHHQTVVQRTQXKFGCPCFGSWCVGCPFGHHGEVKXGKPVGTPCNEQPVTQNU[UVGOJCFCRRQKPVGFCPKPFGRGPFGPVEQPUWNVKPIſTO 5VGTNKPI$WUKPGUU#NKIPOGPV%QPUWNVKPI5FP$JF 5VGTNKPI VQRGTHQTOCTGIWNCTCPFU[UVGOCVKETGXKGYQHVJGTKUMOCPCIGOGPVCPF KPVGTPCNEQPVTQNU[UVGOQHVJG)TQWR5VGTNKPICEVUCUVJGKPVGTPCNCWFKVQTCPFTGRQTVVQ#4/%5VGTNKPIKUHTGGHTQOCP[TGNCVKQPUJKRU QTEQPƀKEVQHKPVGTGUVYJKEJEQWNFKORCKTVJGKTQDLGEVKXKV[CPFKPFGRGPFGPEGQHVJGKPVGTPCNCWFKVHWPEVKQP5VGTNKPIFQGUPQVJCXG CP[FKTGEVQRGTCVKQPCNTGURQPUKDKNKV[QTCWVJQTKV[QXGTCP[QHVJGCEVKXKVKGUCWFKVGF6JG#4/%KUQHVJGQRKPKQPVJCVVJGKPVGTPCN CWFKVHWPEVKQPKUGHHGEVKXGCPFCDNGVQHWPEVKQPKPFGRGPFGPVN[

'FWURGE*QNFKPIU$GTJCF (200401008252) 33 #PPWCN4GRQTV STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL (cont’d)

INTERNAL AUDIT FUNCTION (cont’d)

5VGTNKPIWUGUVJG%151+% %QOOKVVGGQH5RQPUQTKPI1TICPKUCVKQPUQH6TGCFYC[%QOOKUUKQP+PVGTPCN%QPVTQN OQFGNCUCDCUKUKP EQPFWEVKPIKPVGTPCNCWFKVHWPEVKQPU$CUGFQPVJGKTKPVGTPCNCWFKVTGXKGYUQDUGTXCVKQPUYGTGRTGUGPVGFD[5VGTNKPIVQIGVJGTYKVJ /CPCIGOGPVŏUTGURQPUGCPFRTQRQUGFCEVKQPRNCPUVQVJG#4/%HQTTGXKGYFWTKPIVJGSWCTVGTN[#4/%/GGVKPIU+PCFFKVKQPVJG +PVGTPCN#WFKVQTHQNNQYGFWRQPVJGKORNGOGPVCVKQPQHTGEQOOGPFCVKQPUHTQORTGXKQWUE[ENGUQHKPVGTPCNCWFKVCPFWRFCVGFVJG #4/%QPVJGUVCVWUQH/CPCIGOGPVCITGGFCEVKQPRNCP(QTVJGſPCPEKCN[GCTGPFGF(GDTWCT[VJGVQVCNEQUVUKPEWTTGFHQT VJGQWVUQWTEGFKPVGTPCNCWFKVHWPEVKQPKU4/

(QTVJGſPCPEKCN[GCTGPFGF(GDTWCT[QPG  KPVGTPCNCWFKVTGXKGYCPFQPG  HQNNQYWRUVCVWUTGXKGYJCFDGGPECTTKGF QWVD[5VGTNKPI

Audit Period Reporting Month Name of Entity Audited Audited Areas

1st Quarter ,WN[ 'FWURGE*QNFKPIU$GTJCF #PVK$TKDGT[/CPCIGOGPV /CTEJŌ/C[ System

4th Quarter May 2021 'FWURGE*QNFKPIU$GTJCF (QNNQYWRUVCVWUTGXKGY &GEGODGTŌ(GDTWCT[

6JGMG[GNGOGPVUQHVJG)TQWRŏUKPVGTPCNEQPVTQNU[UVGOCTGFGUETKDGFDGNQY

Ŗ 1TICPKUCVKQPCN5VTWEVWTG

6JG)TQWRJCUCYGNNFGſPGFQTICPKUCVKQPCNUVTWEVWTGYKVJENGCTN[FGſPGFNKPGUQHCEEQWPVCDKNKV[FGNGICVKQPQHTGURQPUKDKNKV[ CPFNGXGNQHCWVJQTKUCVKQPHQTCNNCURGEVUQHVJGDWUKPGUUDGKPINCKFFQYPCPFEQOOWPKECVGFVJTQWIJQWVVJG)TQWR

Ŗ 5VCPFCTF1RGTCVKPI2QNKEKGUCPF2TQEGFWTGU ő5122Œ

6JGTGURGEVKXGFGRCTVOGPVJCUGUVCDNKUJGF5122VQUGTXGCUCIGPGTCNOCPCIGOGPVIWKFGHQTFCKN[QRGTCVKQPU6JGUGRQNKEKGU CPFRTQEGFWTGUCTGTGXKGYGFQPCTGIWNCTDCUKUVQTGƀGEVEJCPIKPITKUMUQTVQTGUQNXGCP[QRGTCVKQPCNFGſEKGPEKGU+VKUCNUQVQ RTQOQVGGHſEKGPE[CPFCEEQWPVCDKNKV[HQTVJG)TQWR

Ŗ #WVJQTKV[/CVTKZ

#WVJQTKV[/CVTKZJCUDGGPGUVCDNKUJGFYKVJKPVJG)TQWRVQRTQXKFGCHWPEVKQPCNHTCOGYQTMQHCWVJQTKV[KPCRRTQXKPIRWTEJCUGU CPFGZRGPUGU

Ŗ 5VCHH6TCKPKPICPF&GXGNQROGPV2TQITCOOGU

6TCKPKPI CPFFGXGNQROGPV RTQITCOOGUCTGGUVCDNKUJGF VQGPUWTGVJCV VJGGORNQ[GGUCTGEQPUVCPVN[ MGRVWRVQFCVG YKVJ VJGEQPUVCPVEJCPIKPIQHVGEJPQNQIKECNGPXKTQPOGPVCPFMPQYNGFIGKPQTFGTVQDGEQORGVGPVKPVJGKPFWUVT[KPNKPGYKVJ CEJKGXKPIVJG)TQWRŏUDWUKPGUUQDLGEVKXGU

Ŗ #PVK$TKDGT[/CPCIGOGPV5[UVGO

6JG)TQWRJCUKORNGOGPVGFVJG#PVK$TKDGT[/CPCIGOGPV5[UVGOYKVJVJGQDLGEVKXGQHEQORNKCPEGYKVJUWDUGEVKQP  QH UGEVKQP#WPFGTVJG/CNC[UKCP#PVK%QTTWRVKQP%QOOKUUKQP /#%% #EVVJCVGHHGEVKXGHTQO,WPGQPYCTFU 6JG)TQWRYKNNEQPVKPWGVQCFQRVVJG)WKFGNKPGQP#FGSWCVG2TQEGFWTGU )#2 CPFEQORN[YKVJVJGNKUVKPITGSWKTGOGPVUKP TGNCVKQPVQ#PVK%QTTWRVKQPOGCUWTGU

'FWURGE*QNFKPIU$GTJCF (200401008252) 34 #PPWCN4GRQTV STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL (cont’d)

ASSURANCE FROM MANAGEMENT

6JG$QCTFJCUTGEGKXGFCUUWTCPEGHTQOVJG%JKGH'ZGEWVKXG1HſEGTCPF%JKGH(KPCPEKCN1HſEGTVJCVVJG)TQWRŏUTKUMOCPCIGOGPV CPFKPVGTPCNEQPVTQNU[UVGOCTGQRGTCVKPICFGSWCVGN[CPFGHHGEVKXGN[KPCNNOCVGTKCNCURGEVUDCUGFQPVJGTKUMOCPCIGOGPVCPF KPVGTPCNEQPVTQNU[UVGOQHVJG)TQWR

REVIEW OF STATEMENT BY THE EXTERNAL AUDITORS

6JGGZVGTPCNCWFKVQTUJCXGTGXKGYGFVJKU5VCVGOGPVQP4KUM/CPCIGOGPVCPF+PVGTPCN%QPVTQNHQTKPENWUKQPKPVJKU#PPWCN4GRQTV CPFJCFTGRQTVGFVQVJG$QCTFVJCVPQVJKPIJCUEQOGVQVJGKTCVVGPVKQPVJCVECWUGUVJGOVQDGNKGXGVJCVVJGUVCVGOGPVKUKPEQPUKUVGPV YKVJVJGKTWPFGTUVCPFKPIQHVJGRTQEGUUCFQRVGFD[VJG$QCTFKPTGXKGYKPIVJGCFGSWCE[CPFKPVGITKV[QHVJGU[UVGOQHKPVGTPCN EQPVTQN

CONCLUSION

(QTVJGſPCPEKCN[GCTVJ(GDTWCT[CPFWRVQVJGFCVGQHCRRTQXCNQHVJKUUVCVGOGPVVJG$QCTFKUQHVJGQRKPKQPVJCVVJGTKUM OCPCIGOGPVCPFKPVGTPCNEQPVTQNU[UVGOEWTTGPVN[KPRNCEGKUCFGSWCVGCPFGHHGEVKXGVQUCHGIWCTFVJG)TQWRŏUKPVGTGUVUCPFCUUGVU (QTVJGEQOKPI[GCTVJG$QCTFYKNNEQPVKPWCNN[CUUGUUVJGCFGSWCE[CPFGHHGEVKXGPGUUQHVJG)TQWRŏUU[UVGOQHKPVGTPCNEQPVTQN CPFVQUVTGPIVJGPKVCUCPFYJGPPGEGUUCT[6JKUUVCVGOGPVKUOCFGKPCEEQTFCPEGYKVJVJGTGUQNWVKQPRCUUGFD[VJG$QCTFFCVGF (GDTWCT[

'FWURGE*QNFKPIU$GTJCF (200401008252) 35 #PPWCN4GRQTV Reports And Financial Statements

Directors’ Report 37

Statement by Directors 44

Statutory Declaration 44

Independent Auditors’ Report 45

Statements of Financial Position 51

5VCVGOGPVUQH2TQſVQT.QUUCPF1VJGT%QORTGJGPUKXG+PEQOG 53

5VCVGOGPVUQH%JCPIGUKP'SWKV[ 55

%QPUQNKFCVGF5VCVGOGPVQH%CUJ(NQYU 61

0QVGU6Q6JG(KPCPEKCN5VCVGOGPVU 65

'FWURGE*QNFKPIU$GTJCF (200401008252) 36 Annual Report 2021 DIRECTORS’ REPORT

The Directors hereby present their report together with the audited financial statements of the Group and of the Company for the financial year ended 28 February 2021.

Principal Activities

The principal activities of the Company are those of investment holding and the development DQGSURYLVLRQRILQIRUPDWLRQWHFKQRORJ\ ³,7´ OHDUQLQJSURJUDPVDQGHGXFDWLRQDOVHUYLFHV

The principal activities of the subsidiaries are disclosed in Note 7 to the financial statements.

There have been no significant changes in the nature of these activities during the financial year.

Financial Results

Group Company RM RM

Loss for the financial year 23,495,059 14,481,496

Attributable to: Owners of the Parent 23,455,987 14,481,496 Non-controlling interests 39,072 - 23,495,059 14,481,496

Reserves and Provisions

There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the financial statements.

Dividends

Dividends paid, declared or proposed since the end of the previous financial year were as follows:

2% cumulative rHGHHPDEOHFRQYHUWLEOHSUHIHUHQFHVKDUHV ³5&36´ A cumulative preferential dividend at 2% per annum based on the issue price of RCPS, amounting to RM1,534 was declared during the financial year.

'FWURGE*QNFKPIU$GTJCF (200401008252) 37 Annual Report 2021 DIRECTORS’ REPORT (cont’d)

Issue of Shares and Debentures

During the financial year, the Group and the Company increased its issued and paid up share capital from RM45,598,136 to RM78,598,136 and RM54,317,539 to RM87,317,539 respectively by way of conversion of 33,000,000 Redeemable Convertible Preference Shares ³5&36´) of RM1 each amounting to RM33,000,000 to new ordinary shares.

During the financial year, the Group and the Company¶V H[LVWLQJ QXPEHU RI 7,934,741 Eduspec shares will be consolidated into 1,948,967,361 consolidated shares pursuant to the share consolidation.

The new ordinary shares issued during the financial year rank pari passu in all respects with the existing ordinary shares of the Company.

There was no issuance of debentures by the Company.

Options Granted Over Unissued Shares

No options were granted to any person to take up unissued shares of the Company during the financial year.

Warrants 2019/2024

On 7 October 2019, the bonus issue of warrants has been completed following the listing and quotation of 550,906,743 Warrants B on the basis of every 2 existing ordinary shares on the ACE Market of Bursa Securities.

Each warrant carries entitlement, at any time during the exercise period, to subscribe for one (1) new ordinary share in the share capital of the Company at the exercise price of RM0.05 per ordinary share for each warrant held, subject to adjustments in accordance with the provision of the Deed Poll which is to be satisfied in cash. Any warrant not exercised during the exercise period will lapse and thereafter ceases to be valid for any purpose. The exercise period of the warrant is expired on 30 September 2024.

During the financial year, the existing number of 550,906,743 Warrants B will be adjusted into 275,453,358 consolidated Warrants B pursuant to the share consolidation.

The salient terms of the warrants are disclosed in Note 18 to the financial statements.

'FWURGE*QNFKPIU$GTJCF (200401008252) 38 Annual Report 2021 DIRECTORS’ REPORT (cont’d)

2% Cumulative Redeemable Convertible Preference Shares (³5&36´

The terms of the conversion of the RCPS are disclosed in Note 24 to the financial statements.

As at the end of the financial year, the number of RCPS in issue is 34,000,000 shares and 33,000,000 shares converted to ordinary shares.

Directors

The Directors in office since the beginning of the financial year until the date of this report are:

Lim Een Hong * 'DWR¶'U0Rhd Ariff Bin Araff 'DWR¶5DMD0XQLU6KDK%LQ5DMD0XVWDSKD Lim Thian Loong Su Keong Siong Chang Lih Kang 'DWR¶/HHChin Chong

The Directors who held office in the subsidiary companies (excluding Directors who are also Directors of the Company) since the beginning of the financial year up to the date of this report:

Lim Soon Seong Chew Gean Feun Law Jian Han Lau Pei Fen @ Wendy Lau Tan Ah Yan Dato¶ Abdul Rahim Bin Abdul Hamid Tan Chee Pin Richard Yeo Siong Kieng Wisit Prungcharoen Chang Siew Mun Ronald Soh Hai Huat Steven Tan Soon Chye

* Directors of the Company and of the subsidiary companies

The information required to be disclosed pursuant to Section 253 of the Companies Act, 2016 is deemed incorporated herein by such reference to the financial statements of the respective subsidiary companies and made a part hereof.

'FWURGE*QNFKPIU$GTJCF (200401008252) 39 Annual Report 2021 DIRECTORS’ REPORT (cont’d)

'LUHFWRUV¶,QWHUHVWV

According to the register of DLUHFWRUV¶ shareholdings, the interests of Directors holding office at the end of the financial year in shares, warrants and options over shares in the Company and its related corporations during the financial year are as follows:

Number of ordinary shares At At Shares in the Company 1.3.2020 Bought Sold Consolidated 28.2.2021

Direct Interest Lim Een Hong 250,000 - - (125,000) 125,000 'DWR¶5DMD0XQLU6KDK%LQ Raja Mustapha 50,000 - - (25,000) 25,000 Chang Li Kang - 500,000 (500,000) - -

Indirect Interest Dato' Dr. Mohd Ariff Bin Araff # 1,800,000 - - (900,000) 900,000

Number of ordinary shares At At 1.3.2020 Bought Sold Consolidated 28.2.2021 The Corporate Shareholders *

(a) Victory Solutions (M) Sdn. Bhd. ("VSM")

Direct Interest Lim Een Hong 55,000 - - - 55,000

The Company Indirect Interest Lim Een Hong 43,717,764 - (6,200,000) (18,758,882) 18,758,882

(b) Victory Solutions Holdings Sdn. Bhd. ("VSH")

Direct Interest Lim Een Hong 50,000 - - - 50,000

The Company Indirect Interest Lim Een Hong 43,046,300 - - (21,523,150) 21,523,150

# By virtue of his son, Ismael Alias Ariff Bin Mohd Ariff, DaWR¶'U0RKG$ULII%LQ$UDff is deemed to have interests in shares in the Company in accordance with Section 59(11)(C) of the Companies Act, 2016.

* By virtue of his shareholdings in VSM, and VSH respectively, Lim Een Hong is deemed to have interests in shares in the Company and LWVUHODWHGFRUSRUDWLRQVWRWKHH[WHQWRIWKH&RPSDQ\¶VLQWHUHst, in accordance with Section 8 of the Companies Act, 2016.

'FWURGE*QNFKPIU$GTJCF (200401008252) 40 Annual Report 2021 DIRECTORS’ REPORT (cont’d)

'LUHFWRUV¶,QWHUHVWV &RQW¶G

Other than as disclosed above, the Directors in office at the end of the financial year did not have any interest in shares, warrants and options over shares in the Company or its related corporations during the financial year.

'LUHFWRUV¶%HQHILWV

Since the end of the previous financial year, no Director of the Company has received or become entitled to receive a benefit (other than a benefit included in the aggregate amount of remuneration received or due and receivable by Directors as shown in Note 33(c) to the financial statements) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest.

Neither during nor at the end of the financial year, was the Company a party to any arrangement whose object was to enable the Directors to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.

Indemnity and Insurance Costs

There was no indemnity given to or insurance effected for any Directors, officers and auditors of the Company in accordance with Section 289 of the Companies Act 2016

Other Statutory Information

(a) Before the financial statements of the Group and of the Company were prepared, the Directors took reasonable steps:

(i) to ascertain that action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for doubtful debts; and

(ii) to ensure that any current assets which were unlikely to be realised in the ordinary course of business including the value of current assets as shown in the accounting records of the Group and of the Company have been written down to an amount which current assets might be expected so to realise.

(b) At the date of this report, the Directors are not aware of any circumstances:

(i) which would render the amount written off for bad debts or the amount of the allowance for doubtful debts in the financial statements of the Group and of the Company inadequate to any substantial extent; or

(ii) which would render the values attributed to current assets in the financial statements of the Group and of the Company misleading; or

'FWURGE*QNFKPIU$GTJCF (200401008252) 41 Annual Report 2021 DIRECTORS’ REPORT (cont’d)

Other Statutory Information &RQW¶G

(b) At the date of this report, the Directors are not aware of any circumstances: &RQW¶G

(iii) not otherwise dealt with in this report or the financial statements of the Group and of the Company which would render any amount stated in the financial statements misleading; or

(iv) which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

(c) At the date of this report, there does not exist:

(i) any charge on the assets of the Group and of the Company which has arisen since the end of the financial year which secures the liabilities of any other person; or

(ii) any contingent liability of the Group or of the Company which has arisen since the end of the financial year.

(d) In the opinion of the Directors:

(i) no contingent liability or other has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Group and of the Company to meet their obligations when they fall due;

(ii) the results of the operations of the Group and the Company during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature except as disclosed in the notes to the financial statements; and

(iii) there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely to affect substantially the results of the operations of the Group and of the Company for the financial year in which this report is made.

Subsidiary Companies

The details of the subsidiary companies are disclosed in Note 7 to the financial statements.

Subsequent Events

The details of subsequent event are disclosed in Note 38 to the financial statements.

'FWURGE*QNFKPIU$GTJCF (200401008252) 42 Annual Report 2021 DIRECTORS’ REPORT (cont’d)

Auditors

The Auditors, Messrs. UHY, have expressed their willingness to continue in office.

The details of aXGLWRUV¶UHPXQHUDWLRQDUHVHWRXWin Note 27 to the financial statements.

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors dated -XO\

LIM EEN HONG '$72¶'5. MOHD ARIFF BIN ARAFF

KUALA LUMPUR

'FWURGE*QNFKPIU$GTJCF (200401008252) 43 Annual Report 2021 STATEMENT $;&+4'%6145 STATUTORY &'%.#4#6+10

We, the undersigned, being two of the Directors of the Company, do hereby state that, in the opinion of the Directors, the financial statements set out on pages 16 to 156 are drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 28 February 2021 and of their financial performance and cash flows for the financial year then ended.

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors dated-XO\

LIM EEN HONG '$72¶'5MOHD ARIFF BIN ARAFF

KUALA LUMPUR

STATUTORY DECLARATION 2WTUWCPVVQ5GEVKQP  D QHVJG%QORCPKGU#EV

I, Chew Gean Feun (MIA Membership No: 21713) , being the Officer primarily responsible for the financial management of Eduspec Holdings Berhad, do solemnly and sincerely declare that to the best of my knowledge and belief, the financial statements set out on pages 16 to 156 are correct and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by ) the abovenamed at Kuala Lumpur in ) the Federal Territory on-XO\ ) ) CHEW GEAN FEUN

Before me,

No. W790 Zainul Abidin Bin Ahmad COMMISSIONER FOR OATHS

'FWURGE*QNFKPIU$GTJCF (200401008252) 44 Annual Report 2021 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EDUSPEC HOLDINGS BERHAD =4')+564#6+1001 : ? +0%14214#6'&+0/#.#;5+#  (cont’d)

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the Group and of the Company for the current financial year. These matters were addressed in the context of our audit of the financial statements of the Group and of the Company as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matters How we addressed the key audit matters Impairment Assessment on Goodwill Our procedures in relation to management¶V and Intangible Assets impairment assessment included, among others:

The carrying values of goodwill and x $VVHVVPHQWRIWKHUHOLDELOLW\RIPDQDJHPHQW¶V intangible assets of the Group as at 28 cash flows forecast through the review of past February 2021 are RM3,608,780 and trends of actual financial performances against RM5,387,589 respectively. previous forecasted results;

This was one of the key judgemental areas x Review of the reasonableness of key we focused in our opinion because the assumptions based on our knowledge of the assessment of the carrying values of business and industry; goodwill and intangible assets required the Group to exercise significant judgement x Reconciliation of the input data to supporting due to the inherent uncertainty involved in evidence, such as approved cash flow forecasting and discounting future cash projections and considering the reasonableness flows which were used as the basis for of these projections; and assessment of recoverable amount. x Evaluation of the appropriateness of the discount rate used to determine the preset value of the cash flows and whether the rate used reflects the current market assessments of the time value of money and the risks specific to the asset.

'FWURGE*QNFKPIU$GTJCF (200401008252) 45 Annual Report 2021 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EDUSPEC HOLDINGS BERHAD =4')+564#6+1001 : ? +0%14214#6'&+0/#.#;5+# 

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Eduspec Holdings Berhad, which comprise the statements of financial position as at 28 February 2021 of the Group and of the Company, and the statements of profit or loss and other comprehensive income, statements of changes in equity and statements of cash flows of the Group and of the Company for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 16 to 156.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the Company as at 28 February 2021, and of their financial performance and their cash flows for the financial year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia.

Basis for Opinion

We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors¶ Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence and Other Ethical Responsibilities

We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of AccouQWDQWV ³%\- LaZV´ and the International Ethics Standards BRDUG IRU $FFRXQWDQWV¶ International Code of Ethics for Professional Accountants (including International Independence Standards) ³,(6%$ &RGH´  and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and IESBA Code.

'FWURGE*QNFKPIU$GTJCF (200401008252) 46 Annual Report 2021 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EDUSPEC HOLDINGS BERHAD =4')+564#6+1001 : ? +0%14214#6'&+0/#.#;5+#  (cont’d)

Information Other than the Financial Statements DQG$XGLWRUV¶5HSRUW7KHUHRQ

The Directors of the Company are responsible for the other information. The other information comprises the annual report, but does not include the financial statements of the Group and of the Company and our auditors¶ report thereon.

Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Group and of the Company, or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Directors for the Financial Statements

The Directors of the Company are responsible for the preparation of the financial statements of the Group and of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing WKH*URXS¶VDQGWKH CRPSDQ\¶VDELOLW\WRFRQWLQXHDVDJoing concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Company or to cease operations, or has no realistic alternative but to do so.

'FWURGE*QNFKPIU$GTJCF (200401008252) 47 Annual Report 2021 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EDUSPEC HOLDINGS BERHAD =4')+564#6+1001 : ? +0%14214#6'&+0/#.#;5+#  (cont’d)

Auditors¶5HVSRQVLELOLWLHVIRr the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditRUV¶ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

x Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the GrouS¶VDQGWKH&RPSDQ\¶s internal control.

x Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.

x &RQFOXGH RQ WKH DSSURSULDWHQHVV RI WKH 'LUHFWRUV¶ XVH RI the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that PD\FDVWVLJQLILFDQWGRXEWRQWKH*URXS¶VRUWKH &RPSDQ\¶V DELOLW\ WR FRQWLQXH DV D JRLQJ FRQFHUQ ,f we conclude that a material uncertainty exists, we are required to draw attention in our auditors¶ report to the related disclosures in the financial statements of the Group and of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorV¶ UHSRUW +RZHYHU future events or conditions may cause the Group or the Company to cease to continue as a going concern.

'FWURGE*QNFKPIU$GTJCF (200401008252) 48 Annual Report 2021 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EDUSPEC HOLDINGS BERHAD =4')+564#6+1001 : ? +0%14214#6'&+0/#.#;5+#  (cont’d)

Auditors¶5HVSRQVLELOLWLHVIRUWKe Audit of the Financial Statements (Cont¶d)

As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: (ConW¶G

x Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company, including the disclosures, and whether the financial statements of the Group and of the Company represent the underlying transactions and events in a manner that achieves fair presentation.

x Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial statements of the Group. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, action taken to eliminate threats or safeguard applied.

From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the financial statements of the Group and of the Company for the current financial year and are therefore the key audit matters. We describe these matters in our auditorV¶ UHSRUW unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

'FWURGE*QNFKPIU$GTJCF (200401008252) 49 Annual Report 2021 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EDUSPEC HOLDINGS BERHAD =4')+564#6+1001 : ? +0%14214#6'&+0/#.#;5+#  (cont’d)

Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiary companies of which we have not acted as auditors, are disclosed in Note 7 to the financial statements.

Other Matter

This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies Act, 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

UHY Firm Number: AF 1411 Chartered Accountants

LIM WAN YINN Approved Number: 03262/04/2023 J Chartered Accountant

KUALA LUMPUR

'FWURGE*QNFKPIU$GTJCF (200401008252) 50 Annual Report 2021 STATEMENTS OF FINANCIAL POSITION #5#6('$47#4;

Group Company 2021 2020 2021 2020 Note RM RM RM RM

ASSETS Non-Current Assets Property, plant and equipment 4 7,900,870 6,113,307 2,643 3,401 Right of use assets 5 23,662,722 24,165,395 5,358,708 250,904 Intangible assets 6 5,387,589 9,490,925 - - Investment in subsidiary companies 7 - - 10,438,438 14,834,863 Investment in associates 8 2,289,587 3,222,478 - Other investment 9 - - - - Goodwill on consolidation 10 3,608,780 6,427,226 - - 42,849,548 49,419,331 15,799,789 15,089,168

Current Assets Inventories 11 28,703,567 28,833,979 27,192,467 27,399,594 Trade receivables 12 1,761,946 2,356,066 - - Other receivables 13 18,659,866 13,945,815 4,157,235 5,057,575 Amount due from subsidiary companies 14 - - 14,362,831 2,688,696 Amount due from associates 15 2,931,125 5,526,578 2,919,718 5,516,490 Tax recoverable 869,986 496,945 65,360 30,054 Fixed deposits with licensed banks 16 2,013,167 12,396 2,000,000 - Cash and bank balances 4,580,407 564,354 2,291,212 48,496 59,520,064 51,736,133 52,988,823 40,740,905 Total Assets 102,369,612 101,155,464 68,788,612 55,830,073

'FWURGE*QNFKPIU$GTJCF (200401008252) 51 Annual Report 2021 STATEMENTS OF FINANCIAL POSITION #5#6('$47#4; (cont’d)

Group Company 2021 2020 2021 2020 Note RM RM RM RM

EQUITY Share capital 17 78,598,136 45,598,136 87,317,539 54,317,539 Reserves 18 (37,075,885) (13,791,008) (57,527,067) (43,090,877) Equity attributabe to owners of the parent 41,522,251 31,807,128 29,790,472 11,226,662 Non-controlling interests (466,613) 41,489 - - Total Equity 41,055,638 31,848,617 29,790,472 11,226,662

LIABILITIES Non-Current Liabilites Lease liabilities 19 8,830,876 9,187,592 4,239,918 - Loans and borrowings 20 13,445,308 14,101,515 - - Deferred tax liabilities 21 25,216 9,989 14,792 - 22,301,400 23,299,096 4,254,710 -

Current Liablities Trade payables 22 1,333,727 2,029,618 - - Other payables 23 21,726,784 21,071,963 11,321,047 13,107,492 Redeemable convertible 24 preference shares liability 938,368 - 938,368 - Amount due to subsidiary companies 14 - - 14,451,425 23,993,541 Lease liabilities 19 1,816,273 1,447,966 1,217,364 238,645 Loans and borrowings 20 13,197,422 21,358,678 6,815,226 7,263,733 Provision for taxation - 99,526 - - 39,012,574 46,007,751 34,743,430 44,603,411 Total Liabilities 61,313,974 69,306,847 38,998,140 44,603,411 Total Equity and Liabilities 102,369,612 101,155,464 68,788,612 55,830,073

The accompanying notes form an integral part of the financial statements.

'FWURGE*QNFKPIU$GTJCF (200401008252) 52 Annual Report 2021 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (146*'(+0#0%+#.;'#4'0&'&('$47#4;

Group Company 2021 2020 2021 2020 Note RM RM RM RM

Revenue 25 9,240,603 25,845,649 1,614,579 6,506,163 Cost of sales (6,526,703) (13,751,318) (230,463) (1,384,637) Gross profit 2,713,900 12,094,331 1,384,116 5,121,526 Other income 3,573,967 7,534,595 3,377,152 1,350,981 Administrative expenses (19,274,427) (16,135,000) (6,731,363) (6,002,564) Selling and distribution expenses (1,785,148) (1,431,422) (1,324,974) (9,080) Amortisation of intangible assets (3,696,183) (3,794,356) - - Net loss on impairment of financial instruments (57,386) (44,602,431) (9,204,934) (35,945,645) Other expenses (2,788,233) (5,624,437) (1,386,666) (5,214,596) Loss from operation (21,313,510) (51,958,720) (13,886,669) (40,699,378) Finance costs 26 (1,246,723) (2,670,925) (594,269) (459,931) Share of results, net of tax - Associates (932,891) 727,572 - - Loss before tax 27 (23,493,124) (53,902,073) (14,480,938) (41,159,309) Taxation 28 (1,935) (523,493) (558) (6,494) Loss for the financial year (23,495,059) (54,425,566) (14,481,496) (41,165,803)

'FWURGE*QNFKPIU$GTJCF (200401008252) 53 Annual Report 2021 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

Group Company 2021 2020 2021 2020 Note RM RM RM RM

Other comprehensive loss Items that are or may be reclassified subsequently to profit or loss Foreign currency translation differences 125,804 129,543 - -

Other comprehensive loss for the financial year 125,804 129,543 - - Total comprehensive loss for the financial year (23,369,255) (54,296,023) (14,481,496) (41,165,803)

Loss for the financial year attributable to: Owners of the parent (23,455,987) (54,270,778) (14,481,496) (41,165,803) Non-controlling interests (39,072) (154,788) - - (23,495,059) (54,425,566) (14,481,496) (41,165,803)

Total comprehensive loss attributables to: Owners of the parent (23,330,183) (54,141,235) (14,481,496) (41,165,803) Non-controlling interests (39,072) (154,788) - - (23,369,255) (54,296,023) (14,481,496) (41,165,803)

Loss per share Basic loss per share (sen) 29 (1.20) (4.40) Diluted loss per share (sen) 29 (1.20) (4.40)

The accompanying notes form an integral part of the financial statements.

'FWURGE*QNFKPIU$GTJCF (200401008252) 54 Annual Report 2021 STATEMENTS OF CHANGES IN EQUITY (146*'(+0#0%+#.;'#4'0&'&('$47#4;

Non-Distributable Reserve Distributable Reserves Redeemable Foreign (Accumulated Attributale Convertible Reverse Exchange Losses)/ To Owners Non- Share Preference Acquisition Translation Retained of The Controlling Total Capital Shares Reserve Reserve Earnings Company Interests Equity Note RM RM RM RM RM RM RM RM Group At 1.3.2020 45,598,136 - (18,570,000) 371,113 4,407,879 31,807,128 41,489 31,848,617 Loss after tax for the financial year - - - - (23,455,987) (23,455,987) (39,072) (23,495,059) Other comprehensive (loss)/income for the financial year: - Foreign currency translation differences - - - 125,804 - 125,804 - 125,804 Total comprehensive (loss)/income for the financial year - - - 125,804 (23,455,987) (23,330,183) (39,072) (23,369,255) Transaction with non- controlling interests: - Acquisition of a subsidiary 7(c) ------(469,030) (469,030) Total transactions with non-controlling interests ------(469,030) (469,030) Balance carried forward 45,598,136 - (18,570,000) 496,917 (19,048,108) 8,476,945 (466,613) 8,010,332

'FWURGE*QNFKPIU$GTJCF (200401008252) 55 Annual Report 2021 STATEMENTS OF CHANGES IN EQUITY (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

Non-Distributable Reserve Distributable Reserves Redeemable Foreign (Accumulated Attributale Convertible Reverse Exchange Losses)/ To Owners Non- Share Preference Acquisition Translation Retained Of The Controlling Total Note Capital Shares Reserve Reserve Earnings Company Interests Equity RM RM RM RM RM RM RM RM Group (Cont'd) Balance brought forward 45,598,136 - (18,570,000) 496,917 (19,048,108) 8,476,945 (466,613) 8,010,332 Contributions by and distributions to owners of the Company: - Issuance of RCPS24 - 33,046,840 - - - 33,046,840 - 33,046,840 - Conversion of RCPS2433 ,000,000 (33,000,000) ------RCPS dividend declared - - - - (1,534) (1,534) - (1,534) Total transactions with owners 33,000,000 46,840 - - (1,534) 33,045,306 - 33,045,306 At 28.2.2021 78,598,136 46,840 (18,570,000) 496,917 (19,049,642) 41,522,251 (466,613) 41,055,638

'FWURGE*QNFKPIU$GTJCF (200401008252) 56 Annual Report 2021 STATEMENTS OF CHANGES IN EQUITY (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

Non-Distributable Reserve Distributable Reserves Redeemable Foreign (Accumulated Attributale Convertible Reverse Exchange Losses)/ To Owners Non- Share Preference Acquisition Translation Retained Of The Controlling Total Capital Shares Reserve Reserve Earnings Company Interests Equity RM RM RM RM RM RM RM RM Group At 1.3.2019, as previously stated 140,403,366 - (18,570,000) (57,433) (47,925,963) 73,849,970 1,567,731 75,417,701

Effect of adoptiong MFRS 9 - - - - (656,290) (656,290) (45) (656,335) Effect of adoptiong MFRS 16 - - - - (34,813) (34,813) (1,127) (35,940) - - - - (691,103) (691,103) (1,172) (692,275) At 1.3.2019, as restated 140,403,366 - (18,570,000) (57,433) (48,617,066) 73,158,867 1,566,559 74,725,426 Loss after tax for the finacial year - - - - (54,270,778) (54,270,778) (154,788) (54,425,566) Other comprehensive (loss)/ income for the financial year: - Foreign currency translation differences - - - 129,543 - 129,543 - 129,543 Total comprehensive loss for the financial year - - - 129,543 (54,270,778) (54,141,235) (154,788) (54,296,023) Transaction with non- controlling interests: - Acquisition of a subsidiary 7(c) ------258,634 258,634 - Disposal of a subsidiary 7(d) - - - 299,003 - 299,003 (1,628,916) (1,329,913) Total transactions with non-controlling interests - - - 299,003 - 299,003 (1,370,282) (1,071,279) Balance carried forward 140,403,366 - (18,570,000) 371,113 (102,887,844) 19,316,635 41,489 19,358,124

'FWURGE*QNFKPIU$GTJCF (200401008252) 57 Annual Report 2021 STATEMENTS OF CHANGES IN EQUITY (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

Non-Distributable Reserve Distributable Reserves Redeemable Foreign (Accumulated Attributale Convertible Reverse Exchange Losses)/ To Owners Non- Share Preference Acquisition Translation Retained Of The Controlling Total Capital Shares Reserve Reserve Earnings Company Interests Equity RM RM RM RM RM RM RM RM Group (Cont'd) Balance brought forward 140,403,366 - (18,570,000) 371,113 (102,887,844) 19,316,635 41,489 19,358,124

Contributions by and distributions to owners of the Company: - Share capital reduction 17 (107,305,230) - - - 107,305,230 - - - - Issuance of RCPS 24 - 12,500,000 - - - 12,500,000 - 12,500,000 - Conversion of RCPS 24 12,500,000 (12,500,000) ------RCPS dividend declared - - - - (9,507) (9,507) - (9,507) Total transactions with owners (94,805,230) - - - 107,295,723 12,490,493 - 12,490,493 At 29.2.2020 45,598,136 - (18,570,000) 371,113 4,407,879 31,807,128 41,489 31,848,617

'FWURGE*QNFKPIU$GTJCF (200401008252) 58 Annual Report 2021 STATEMENTS OF CHANGES IN EQUITY (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

Distributable Non-distributable Reserves Redeemable Convertible Share Preference Accumulated Total Note Capital Shares Losses Equity RM RM RM RM Company At 1.3.2020, as restated 54,317,539 - (43,090,877) 11,226,662 Loss for the financial year, representing total comprehensive loss during the financial year - - (14,481,496) (14,481,496)

Transactions with owners: - Issuance of RCPS 24 - 33,046,840 - 33,046,840 - Conversion of RCPS 24 33,000,000 (33,000,000) - - - RCPS dividend declared - - (1,534) (1,534) Total transactions with owners 33,000,000 46,840 (1,534) 33,045,306 At 28.2.2021 87,317,539 46,840 (57,573,907) 29,790,472

'FWURGE*QNFKPIU$GTJCF (200401008252) 59 Annual Report 2021 STATEMENTS OF CHANGES IN EQUITY (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

Distributable Non-distributable Reserves Redeemable Convertible Share Preference Accumulated Total Note Capital Shares Losses Equity RM RM RM RM Company At 1.3.2019, as previously stated 149,122,769 - (109,343,848) 39,778,921

Effect of adoptiong MFRS 16 - - 123,051 123,051 At 1.3.2019, as restated 149,122,769 - (109,220,797) 39,901,972 Loss for the financial year, representing total comprehensive loss during the financial year - - (41,165,803) (41,165,803)

Transactions with owners: - Share capital reduction 17 (107,305,230) - 107,305,230 - - Issuance of RCPS 24 - 12,500,000 - 12,500,000 - Conversion of RCPS 24 12,500,000 (12,500,000) - - - RCPS dividend declared - - (9,507) (9,507)

Total transactions with owners (94,805,230) - 107,295,723 12,490,493

At 29.2.2020 54,317,539 - (43,090,877) 11,226,662

The accompanying notes form an integral part of the financial statements.

'FWURGE*QNFKPIU$GTJCF (200401008252) 60 Annual Report 2021 STATEMENTS OF CASH FLOWS (146*'(+0#0%+#.;'#4'0&'&('$47#4;

Group Company Note 2021 2020 2021 2020 RM RM RM RM Cash Flows From Operating Activities Loss before tax (23,493,124) (53,902,073) (14,480,938) (41,159,309) Adjustments for: Allowance for impairment losses on: - goodwill 2,818,446 447,209 - - - investment in subsidiary companies - - 4,735,725 4,969,839 - investment in other investment - 3,483,242 - 3,239,240 - trade receivables 96,812 1,167,887 - - - other receivables - 43,902,798 - 38,138,381 - amount due from subsidiary companies - - 4,938,118 10,255,064 - amount due from associates - 41,696 - - Amortisation of intangible assets 3,696,183 3,794,356 - - Amortisation of right of use assets 2,556,592 1,886,437 1,322,646 1,505,424 Bad debts written off 73,615 21,341 - - Depreciation of property, plant and equipment 2,892,836 2,570,124 758 3,424 Deposits written off 4,750 1,171 - - Interest expense 1,246,723 2,670,925 594,269 459,931 Intangible assets written off 1,094,381 22,263 - - Property, plant and equipment written off 8 19,378 - - Bad debts recovered (24,421) - - - Gain on disposal of property, plant and equipment (34,329) (29,444) - (897) Gain on disposal of subsidiary company 7 - (3,803,254) - - Gain on acquisition of subsidiary company 7 (129,730) - - - Gain on deemed cost of investment in associate - (2,024,312) - - Interest income (134,484) (47,696) (129,032) (29,385) Inventories (writeback)/written down (157,026) 255,124 - - Reversal of impairment losses on: - trade receivables (39,426) (509,950) - - - amount due from subsidiary companies - - (468,909) (17,417,639)

'FWURGE*QNFKPIU$GTJCF (200401008252) 61 Annual Report 2021 STATEMENTS OF CASH FLOWS (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

Group Company Note 2021 2020 2021 2020 RM RM RM RM

Share of results in associates 932,891 (727,572) - - Share of results in a joint venture Unrealised foreign exchange loss 8,984 1,251,709 27,669 422,167 Waiver of bank borrowings (2,452,547) - - Operating (loss)/profit before working capital changes (11,042,866) 491,359 (3,459,694) 386,240

Changes in working capital: Inventories 290,213 238,040 207,127 1,052,057 Receivables (4,137,588) (4,136,250) 900,340 345,397 Payables 18,058 (1,764,994) (1,787,980) (1,169,889) (3,829,317) (5,663,204) (680,513) 227,565 Cash (used in)/generated from operations (14,872,183) (5,171,845) (4,140,207) 613,805 Interest paid (1,246,723) (2,670,925) (594,269) (459,931) Interest received 134,484 47,696 129,032 29,385 Tax paid (516,295) (975,463) (35,864) (37,994) Tax refunded 42,228 422,730 - 74,716 (1,586,306) (3,175,962) (501,101) (393,824) Net cash (used in)/from operating activities (16,458,489) (8,347,807) (4,641,308) 219,981

Cash Flows From Investing Activities Repayment from subsidiary companies - - - (7,032,884) Repayment from associates 2,586,317 - 2,596,773 - Addition of intangible assets (687,228) (2,217,474) - - Advances to associates - (4,125,204) (25,964,771) (4,087,018) Net cash outflow for acquisition of subsidiary companies 7 (339,300) (5,103) (339,300) (103) Net cash inflow for disposal of a subsidiary company 7 - 4,349,342 - - Proceeds from disposal of property, plant and equipment 42,717 75,481 - 900 Purchase of property, plant and equipment 4 (4,688,656) (805,452) - - Net cash used in investing activities (3,086,150) (2,728,410) (23,707,298) (11,119,105)

'FWURGE*QNFKPIU$GTJCF (200401008252) 62 Annual Report 2021 STATEMENTS OF CASH FLOWS (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

Group Company Note 2021 2020 2021 2020 RM RM RM RM

Cash Flows From Financing Activities Net (repayment)/drawdown of bankers' acceptances 32 (296,315) 15,336 (296,315) 15,336 Net drawdown/(repayment) of short term revolving credit 32 329,899 (230,344) 329,899 (230,344) Proceeds from RCPS 32 34,000,000 12,500,000 34,000,000 12,500,000 Net drawdown/(repayment) of foreign currency loans against imports 32 (55,404) 7,227 (55,404) 7,227 Fixed deposits not for short term funding requirement (771) (577) - - Repayment of term loans 32 (6,191,188) (654,936) - - Repayment of lease liabilities 32 (2,042,328) (1,603,225) (1,211,813) (1,394,632) Net cash from financing activities 25,743,893 10,033,481 32,766,367 10,897,587

Net increase/(decrease) in cash and cash equivalents 6,199,254 (1,042,736) 4,417,761 (1,537) Cash and cash equivalents at the beginning of the financial year (18,994) 844,951 (534,852) (691,627) Effect on foreign exchange (32,415) 178,791 (24,259) 158,312 Cash and cash equivalents at the end of the financial year 6,147,845 (18,994) 3,858,650 (534,852)

'FWURGE*QNFKPIU$GTJCF (200401008252) 63 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

Group Company 2021 2020 2021 2020 RM RM RM RM Cash and cash equivalents at the end of the financial year comprises: Cash and bank balances 4,580,407 564,354 2,291,212 48,496 Fixed deposit with licensed banks 2,013,167 12,396 2,000,000 - Bank overdraft (432,562) (583,348) (432,562) (583,348) 6,161,012 (6,598) 3,858,650 (534,852)

Less: Fixed deposits not for short term funding requirements (13,167) (12,396) - - 6,147,845 (18,994) 3,858,650 (534,852)

Cash outflow for leases as a lessee Group Company Note 2021 2020 2021 2020 RM RM RM RM

Included in net cash from operating activities: Payment relating to short-term leases 27 4,300 49,834 - - Payment relating to leases of low- value assets 27 159,669 314,144 - - Interest paid in relation to leases liabilities 26 417,118 165,682 228,187 45,368 Included in net cash from financing activities: Payment of lease liabilities 2,042,328 1,603,225 1,211,813 1,394,632 Total cash outflows for leases 2,623,415 2,132,885 1,440,000 1,440,000

The accompanying notes form an integral part of the financial statements.

'FWURGE*QNFKPIU$GTJCF (200401008252) 64 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4;

1. Corporate Information

The Company is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Ace Market of Bursa Malaysia Securities Berhad.

The registered office is located at Level 2, Tower 1, Avenue 5, Bangsar South City, 59200 Kuala Lumpur.

The principal place of business is located at No. 10, Jalan 15/22, Tiong Nam Industrial Park, Section 15, 40200 Shah Alam, Selangor Darul Ehsan.

The principal activities of the Company are those of investment holding and the development and provision of informaWLRQ WHFKQRORJ\ ³,7´  OHDUQLQJ SURJUDPV DQG educational services. The principal activities of the subsidiary companies are disclosed in Note 7. There have been no significant changes in the nature of these activities of the Company and its subsidiary companies during the financial year.

2. Basis of Preparation

(a) Statement of compliance

The financial statements of the Group and of the Company have been prepared in accordance with Malaysian Financial Reporting Standards ³0)56V´  International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia.

The financial statements of the Group and of the Company have been prepared under the historical cost convention, unless otherwise indicated in the significant accounting policies below.

'FWURGE*QNFKPIU$GTJCF (200401008252) 65 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

2. Basis of Preparation &RQW¶G

(a) Statement of compliance &RQW¶G

Adoption of new and amended standards

During the financial year, the Group and the Company have adopted the following amendments to MFRSs issued by the Malaysian Accounting Standards Board ³0$6%´ that are mandatory for current financial year:

Amendments to MFRS 3 Definition of a Business Amendments to MFRS 9, Interest Rate Benchmark Reform MFRS 139 and MFRS 7 Amendments to MFRS 101 and Definition of Material MFRS 108 Annual Improvements to MFRSs 2015 - 2017 Cycle: x Amendments to References to the Conceptual Framework in MFRS Standards

The adoption of the new and amendments to MFRSs did not have any significant impact on the financial statements of the Group and the Company.

Standards issued but not yet effective

The Group and the Company have not applied the following new MFRSs and amendments to MFRSs that have been issued by the MASB but are not yet effective for the Group and for the Company:

Effective dates for financial periods beginning on or after Amendments to MFRS 16 Covid 19-Related Rent 1 June 2020 Concessions Amendments to MFRS 9, Interest Rate Benchmark 1 January 2021 MFRS 139, MRFS 7, Reform ± Phase 2 MFRS 4, and MFRS 16 Amendment to MFRS 16 Covid-19 Related Rent 1 April 2021 Concessions beyond 30 June 2021 Amendments to MFRS 3 Reference to the 1 January 2022 Conceptual Framework



'FWURGE*QNFKPIU$GTJCF (200401008252) 66 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

2. Basis of Preparation (CoQW¶G

(a) Statement of compliance &RQW¶G)

Standards issued but not yet effective (cont¶d)

The Group and the Company have not applied the following new MFRSs and amendments to MFRSs that have been issued by the MASB but are not yet effective for the Group and for the Company: (cont¶d) Effective dates for financial periods beginning on or after Amendments to Property, Plant and Equipment 1 January 2022 MFRS 116 ± Proceeds before Intended Use Amendments to Onerous Contracts ± Cost of 1 January 2022 MFRS 137 Fulfilling a Contract Amendments to MFRSs Annual Improvement to 1 January 2022 MFRS Standards 2018-2020 MFRS 17 Insurance Contracts 1 January 2023 Amendments to MFRS 17 Insurance Contracts 1 January 2023 Amendments to MFRS 4 Insurance Contracts 1 January 2023 (Extension of the Temporary Exemption from Applying MFRS 9) Amendments to MFRS 101 Classification of Liabilities as 1 January 2023 Current or Non-current Amendments to MFRS 101 Disclosure of Accounting 1 January 2023 Policies Amendments to MFRS 108 Definition of Accounting 1 January 2023 Estimates Amendments to MFRS 10 Sale or Contribution of Assets Deferred until and MFRS 128 between an Investor and its further notice Associate or Joint Venture

The Group and the Company intend to adopt the above MFRSs and amendments to MFRSs when they become effective.

The initial application of the above-mentioned MFRSs are not expected to have any significant impacts on the financial statements of the Group and the Company.

'FWURGE*QNFKPIU$GTJCF (200401008252) 67 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

2. Basis of Preparation &RQW¶G

(b) Functional and presentation currency

These financial sWDWHPHQWVDUHSUHVHQWHGLQ5LQJJLW0DOD\VLD ³50´ ZKLFKLVthe *URXS¶V DQG WKH &RPSDQ\¶V functional currency. All financial information is presented in RM and has been rounded to the nearest RM except when otherwise stated.

(c) Significant accounting judgements, estimates and assumptions

7KHSUHSDUDWLRQRIWKH*URXS¶Vand of WKH&RPSDQ\¶Vfinancial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future.

Judgements

The following are the judgements made by management in the process of applying the *URXS¶V and the Compan\¶Vaccounting policies that have the most significant effect on the amounts recognised in the financial statements:

Control over Eduspec (Thailand) Co. Ltd.

Note 7 describes that Eduspec (Thailand) Co. Ltd. is subsidiary company of the Group even though the Group owns less than half of the ownership interest in these entities and less than half of their voting power. The Group controls Eduspec (Thailand) Co. Ltd., by virtue of an agreement with its other shareholders. The Group has de-facto control over Eduspec (Thailand) Co. Ltd., on the basis that the remaining voting rights in the investee are widely dispersed and that there is no indication that all other shareholders exercise their votes collectively.

'FWURGE*QNFKPIU$GTJCF (200401008252) 68 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

2. Basis of Preparation (Cont¶G 

(c) Significant accounting judgements, estimates and assumptionV &RQW¶G

Judgements (CRQW¶G

Determining the lease term of contracts with renewal and termination options ± Group as lessee

The Group and the Company determine the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Group and the Company have several lease contracts that include extension and termination options. The Group and the Company apply judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Group and the Company reassess the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant leasehold improvements or significant customisation to the leased asset).

The Group and the Company include the renewal period as part of the lease term for leases of land and building with non-cancellable period included as part of the lease term as these are reasonably certain to be exercised because there will be a significant negative effect on operation if a replacement asset is not readily available. Furthermore, the periods covered by termination options are included as part of the lease term only when they are reasonably certain not to be exercised.

'FWURGE*QNFKPIU$GTJCF (200401008252) 69 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

2. %DVLVRI3UHSDUDWLRQ &RQW¶G

(c) Significant accounting judgements, estimates and assumptions (ConW¶G

Judgements &RQW¶G

Satisfaction of performance obligation in relation to contracts with customers

The Group and the Company required to assess each of its contracts with customers to determine whether performance obligations are satisfied over time or at a point in time in order to determine the appropriate method for recognising revenue. This assessment was made based on the terms and conditions of the contracts, and the provisions of relevant laws and regulations:

The Group and the Company recognise revenue over time in the following circumstances:

(a) the customer simultaneously receives and consumes the benefits provided by WKH*URXS¶Vand the Company¶s performance as the Group and the Company perform; (b) the Group and the Company do not create an asset with an alternative use to the Group and the Company and have an enforceable right to payment for performance completed to date; and (c) WKH*URXS¶Vand the Company¶s performance creates or enhances an asset that the customer controls as the asset is created or enhanced.

Where the above criteria are not met, revenue is recognised at a point in time. Where revenue is recognised at a point of time, the Group and the Company assess each contract with customers to determine when the performance obligation of the Group and of the Company under the contract is satisfied.

Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period are set out below:

Useful lives / depreciation of property, plant and equipment and right of use ³5O8´ DVVHW 1Rtes 4 and 5)

The Group and the Company regularly review the estimated useful lives of property, plant and equipment and ROU assets based on factors such as business plan and strategies, expected level of usage and future technological developments. Future results of operations could be materially affected by changes in these estimates brought about by changes in the factors mentioned above. A reduction in the estimated useful lives of property, plant and equipment and ROU assets would increase the recorded depreciation and decrease the value of property, plant and equipment and ROU assets.

'FWURGE*QNFKPIU$GTJCF (200401008252) 70 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

2. %DVLVRI3UHSDUDWLRQ &RQW¶G 

(c) Significant accounting judgements, HVWLPDWHVDQGDVVXPSWLRQV &RQW¶G

Key sources of estimation uncertainty &RQW¶G

Intangible assets

The Group and the Company capitalise development costs for a project in accordance with the accounting policy. Initial capitalisation of development costs is EDVHG RQ PDQDJHPHQW¶V MXGJHPHQW WKDW WHFKQological and economic feasibility is confirmed, usually when a product development project has reached a defined milestone according to an established project management model. In determining the amounts to be capitalised, management makes assumptions regarding the expected future cash generations of the project, discount rates to be applied and the expected period of benefits. The capitalised development costs are over their useful lives. Changes in the expected level of usage and technological development could impact the economic useful lives, therefore future amortisation charges could be revised. The carrying amount at the reporting date for development costs is disclosed in Note 6.

Impairment of investments in subsidiary companies

The Company reviews its investments in subsidiary companies when there are indicators of impairment. Impairment is measured by comparing the carrying amount of an investment with its recoverable amount. Significant judgement is required in determining the recoverable amount. Estimating the recoverable amount requires the Company to make an estimate of the expected future cash flows from the cash- generating units and also to determine a suitable discount rate in order to calculate the present value of those cash flows. The carrying amount at the reporting date for investments in subsidiaries is disclosed in Note 7.

Impairment of goodwill on consolidation

The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the value-in-use of the cash-generating units to which the goodwill is allocated. Estimating the value-in-use amount requires the Group to make an estimate of the expected future cash flows from the cash-generating unit and also to choose a suitable discount rate in order to calculate the present value of those cash flows. The key assumptions used to determine the value-in-use is disclosed in Note 10.

Inventories valuation

Inventories are measured at the lower of cost and net realisable value. The Group and the Company estimate the net realisable value of inventories based on an assessment of expected sales prices. Demand levels and pricing competition could change from time to time. If such factors result in an adverse HIIHFWRQWKH*URXS¶V DQG WKH &RPSDQ\¶V SURGXFWV, the Group and the Company might be required to reduce the value of its inventories. Details of inventories are disclosed in Note 11.

'FWURGE*QNFKPIU$GTJCF (200401008252) 71 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

2. Basis RI3UHSDUDWLRQ &RQW¶G 

(c) Significant accounting judgements, estiPDWHVDQGDVVXPSWLRQV &RQW¶G

Key sources of estimation uncertainty (ConW¶G

Provision for expected credit loss of financial assets at amortised cost

The Group and the Company review the recoverability of its receivables, include trade and other receivables, amounts due from subsidiary companies and related companies at each reporting date to assess whether an impairment loss should be recognised. The impairment provisions for receivables are based on assumptions about risk of default and expected loss rates. The Group and the Company use judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the GrRXS¶V DQG RQ WKH &RPSDQ\¶V SDVW KLstory, existing market conditions as well as forward looking estimates at the end of each reporting period.

The carrying amounts at the reporting date for receivables are disclosed in Notes 12, 13, 14, and 15 respectively to the financial statements.

Determination of transaction prices

The Group and the Company are required to determine the transaction price in respect of each of its contracts with customers. In making such judgment the Group and the Company assess the impact of any variable consideration in the contract due to discounts or penalties, the existence of any significant financing component and any non-cash consideration in the contract.

There is no estimation required in determining the transaction price, as revenue from sale of goods or services are based on invoiced values. Discounts are not considered as they are not only given in rare circumstances.

Deferred tax assets

Deferred tax assets are recognised for all unused tax losses, unabsorbed capital allowances and other deductible temporary differences to the extent that it is probable that taxable profit will be available against which the unused tax losses, unabsorbed capital allowances and other deductible temporary differences can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies of the carrying value of recognised and unrecognised deferred tax assets are disclosed in Note 21.

'FWURGE*QNFKPIU$GTJCF (200401008252) 72 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

2. Basis of Preparation &RQW¶G 

(c) Significant accounting judgements, estimates and assumptions &RQW¶G

Key sources of estimation uncertainty (CoQW¶G

Discount rate used in leases

Where the interest rate implicit in the lease cannot be readily determined, the Group and the Company use the incremental borrowing rate to measure the lease liabilities. The incremental borrowing rate is the interest rate that the Group would have to pay to borrow over a similar term, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. Therefore, the incremental borrowing rate requires estimation, particularly when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Group and the Company estimate the incremental borrowing rate using observable inputs when available and is required to make certain entity-specific estimates.

Income taxes

Judgement is involved in determining the provision for income taxes. There are certain transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of business.

The Group and the Company recognise liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. As at 28 February 2021, the Group has tax recoverable of RM869,986 (2020: RM496,945) and tax payable of RMNIL (2020: RM99,526) respectively. The Company has tax recoverable of RM65,360 (2020: RM30,054).

Fair values of financial instruments

Management uses valuation techniques in measuring the fair value of financial instruments where active market quotes are not available. Details of the assumptions used are given in the Note 35(c) regarding financial assets and liabilities. In applying the valuation techniques management makes maximum use of market inputs, and uses estimates and assumptions that are, as far as possible, consistent with observable data that market participants would use in pricing the instrument. Where applicable data is not observable, management uses its best estimate about the assumptions that market participants would make. These estimates may vary from the actual prices that would be achieved in an arm's length transaction at the end of the reporting period.

'FWURGE*QNFKPIU$GTJCF (200401008252) 73 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies

The Group and the Company apply the significant accounting policies set out below, consistently throughout all periods presented in the financial statements.

(a) Basis of consolidation

(i) Subsidiary companies

All business combinations are accounted for using the acquisition method. As explained below, the Group adopts the reverse acquisition accounting in preparing the consolidated financial statements which incorporate the financial statements of Eduspec Sdn. Bhd. (as the accounting acquirer) and the Company together with its other subsidiaries (as the accounting acquiree).

Reverse Acquisition

On 1 March 2010, the Company acquired a 77.78% equity interest in Eduspec Sdn. %KG ³(6%´) for a total purchase consideration of RM17,350,000. The purchase consideration was satisfied as follows:

(a) a total cash consideration of RM800,000; (b) the issuance of 137,000,000 ordinary shares of RM0.10 each at par by the Company for a consideration of RM13,700,000; and (c) the issuance of performance shares up to 47,500,000 ordinary shares of RM0.06 each by the Company for a consideration of RM2,850,000, if subsequent profitability is achieved by ESB in the financial year ended 30 September 2009 and for the financial years ending 30 September 2010 and 2011 as laid out in the Share Sale Agreements.

Upon completion of the acquisition, the Company became the legal holding company of ESB whereas the former shareholders of ESB to whom the 137,000,000 shares were allotted became the majority shareholders of the Company. In accordance with MFRS 3 Business Combinations, the substance of such business combination between the Company and ESB constituted a reverse acquisition whereby the acquirer and acquiree of the transaction for accounting purposes were ESB (the legal subsidiary) and the Company (the holding company).

Under the reverse acquisition accounting, the consolidated financial statements, although issued under the name of the legal holding company, the Company, represent a continuation of the financial statements of the legal subsidiary, ESB. Accordingly, the consolidated financial statements set out on pages 16 to 29 together with the notes thereto cover ESB (as the accounting acquirer) and the Company (as the accounting acquiree) together with their other subsidiaries.

'FWURGE*QNFKPIU$GTJCF (200401008252) 74 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies &RQW¶G

(a) Basis of consolidation &RQW¶G

(i) Subsidiary Companies &RQW¶G

The reverse acquisition accounting does not apply in the separate financial statements of the Company set out on pages 16 to 29 together with the notes thereto. The reporting period of the Company is the same with that of the Group in the current and previous financial years.

Subsidiary companies are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Under the acquisition method of accounting, subsidiaries are fully consolidated from the date on which control is transferred to the Group and de-consolidated from the date that control ceased. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in business combination are measured initially at their fair values at the acquisition date.

The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling LQWHUHVW¶V SURSRUWLRQDWe share of the recognised DPRXQWV RI DFTXLUHH¶V identifiable net assets.

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

'FWURGE*QNFKPIU$GTJCF (200401008252) 75 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies &RQW¶G

(a) Basis of consolidation (&RQW¶G

(i) Subsidiary Companies (Cont¶G

The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in business combination are measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling intHUHVW¶V SURSRUWLRQDWH VKDre of the recognised amounts of acquirHH¶V identifiable net assets.

Acquisition-related costs are expensed in profit or loss as incurred.

If the business combination is achieved in stages, the DFTXLUHU¶V previously held equity interest in the acquiree is re-measured at its acquisition date fair value and the resulting gain or loss is recognised in profit or loss. Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of MFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognised in profit or loss. Contingent consideration that is classified as equity is not re-measured, and its subsequent settlement is accounted for within equity.

Inter-company transactions, balances and unrealised gains or losses on transactions between Group companies are eliminated. Unrealised losses are eliminated only if there is no indication of impairment. Where necessary, accounting policies of subsidiary companies have been changed to ensure consistency with the policies adopted by the Group.

In the ComSDQ\¶V VHSDrate financial statements, investments in subsidiaries companies are stated at cost less accumulated impairment losses. On disposal of such investments, the difference between net disposal proceeds and their carrying amounts are recognised in profit or loss. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. See accounting policy Note 3(m)(i) to the financial statements on impairment of non-financial assets.

'FWURGE*QNFKPIU$GTJCF (200401008252) 76 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies &RQW¶G

(a) Basis of consolidation &RQW¶G

(ii) Changes in ownership interests in subsidiaries without change of control

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions ± that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.

(iii) Disposal of subsidiaries

If the Group loses control of a subsidiary company, the assets and liabilities of the subsidiary company, including any goodwill, and non-controlling interests are derecognised at their carrying value on the date that control is lost. Any remaining investment in the entity is recognised at fair value. The difference between the fair value of consideration received and the amounts derecognised and the remaining fair value of the investment is recognised as a gain or loss on disposal in profit or loss. Any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities.

(iv) Goodwill on consolidation

The excess of the aggregate of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total consideration transferred, non-controlling interest recognised and previously held interest measured at fair value is less than the fair value of the net assets of the subsidiary acquired (ie. a bargain purchase), the gain is recognised in profit or loss.

Following the initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised but instead, it is reviewed for impairment annually or more frequent when there is objective evidence that the carrying value may be impaired. See accounting policy Note 3(m)(i) to the financial statements on impairment of non-financial assets.

'FWURGE*QNFKPIU$GTJCF (200401008252) 77 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies &RQW¶G

(b) Investments in associate

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control over those policies.

On acquisition of an investment in an associate, any excess of the cost of investment over the GURXS¶s share of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill and included in the carrying amount of the investment. Any excess RIWKH*URXS¶VVKDUHRIthe net fair value of the identifiable assets and liabilities of the investee over the cost of investment is excluded from the carrying amount of the investment and is instead included as income in the GHWHUPLQDWLRQ RI WKH *URXS¶V VKDUH RI DVVRFLDWH¶V SURIit or loss for the period in which the investment is acquired.

An associate is accounted for either at cost or equity method as described in MFRS 128 from the date on which the investee becomes an associate. Under the equity method, on initial recognition the investment in an associate is recognised at cost, and the carrying amount is increased or decreased to recognise WKH*URXS¶s share of profit or loss and other comprehensive income of the associate after the date of acquisition:KHQWKH*URXS¶VVKDUHof losses in an associate equals or exceeds its interest in the associate, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

Profits or losses resulting from upstream and downstream transactions between the Group and its associate DUH UHFRJQLVHG LQ WKH *URXS¶V consolidated financial statements only to the extent of unrelated inYHVWRUV¶ LQterests in the associate. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the assets transferred.

The financial statements of the associates are prepared as of the same reporting date as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group.

After application of the equity method, the Group applies MFRS 136 to determine whether it is necessary to recognise any additional impairment loss with respect to its net investment in the associate. When necessary, the entire carrying amount of the investment is tested for impairment in accordance with MFRS 136 Impairment of Assets as a single asset, by comparing its recoverable amount (higher of value-in-use and fair value less costs to sell) with its carrying amount. Any impairment loss is recognised in profit or loss. Reversal of an impairment loss is recognised to the extent that the recoverable amount of the investment subsequently increases.

'FWURGE*QNFKPIU$GTJCF (200401008252) 78 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies &RQW¶G

(b) Investments in associate (&RQW¶G

Upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognised in profit or loss.

(c) Foreign currency translation

(i) Foreign currency transactions and balances

Transactions in foreign currency are recorded in the functional currency of the respective group entities using the exchange rates prevailing at the dates of the transactions. At each reporting date, monetary items denominated in foreign currencies are retranslated at the rates prevailing on that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences arising on the settlement of monetary items or on translating monetary items at the reporting date are included in profit or loss except for exchange differences arising on monetary items that form part RI WKH *URXS¶V DQG RI WKH &RPSDQ\¶V Qet investment in foreign operation. These are initially taken directly to the foreign currency translation reserve within equity until the disposal of the foreign operations, at which time they are recognised in profit or loss. Exchange differences arising on monetary items that fRUPSDUWRIWKH*URXS¶VDQGRI the ComSDQ\¶V net investment in foreign operation are recognised in profit or loss in tKH*URXS¶V DQGLQWKH&RPSDQ\¶VILQDQFLDOVWDWHPHQWVor the individual financial statements of the foreign operation, as appropriate.

Exchange differences arising on the translation of non-monetary items carried at fair value are included in profit or loss for the reporting period except for the differences arising on the translation of non-monetary items in respect of which gains and losses are recognised in other comprehensive income. Exchange differences arising from such non- monetary items are also recognised in other comprehensive income.

'FWURGE*QNFKPIU$GTJCF (200401008252) 79 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies &RQW¶G

(c) Foreign currency translation &RQW¶G

(ii) Foreign operations

The assets and liabilities of foreign operations denominated in functional currencies other than RM, including goodwill and fair value adjustments arising on acquisition, are translated to RM at the rate of exchange prevailing at the reporting date, except for goodwill and fair value adjustments arising from business combinations before 1 January 2012 (the date of transition to MFRS) which are treated as assets and liabilities of the Group and of the Company. The income and expenses of foreign operations, excluding foreign operations in hyperinflationary economies, are translated to RM at exchange rates at the dates of the transactions.

Foreign currency differences are recognised in other comprehensive income and accumulated in the foreign currency translation reserve ³)&75´  LQ HTXLW\ However, if the operation is a non-wholly owned subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-controlling interests. When a foreign operation is disposed of such that control, significant influence or joint control is lost, the cumulative amount in the FCTR related that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal.

When the Group or the Company disposes of only part of its interest in a subsidiary that includes a foreign operation, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group or the Company disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

(d) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. The policy of recognition and measurement of impairment losses is in accordance with Note 3(m)(i).

'FWURGE*QNFKPIU$GTJCF (200401008252) 80 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies (Cont¶G

(d) Property, plant and equipment &RQW¶G

(i) Recognition and measurement

Cost includes expenditures that are directly attributable to the acquisition of the assets and any other costs directly attributable to bringing the asset to working condition for its intended use, cost of replacing component parts of the assets, and the present value of the expected cost for the decommissioning of the assets after their use. The cost of self-constructed assets also includes the cost of materials and direct labour. For qualifying assets, borrowing costs are capitalised in accordance with the accounting policy on borrowing costs. All other repair and maintenance costs are recognised in profit or loss as incurred.

The cost of property, plant and equipment recognised as a result of a business combination is based on fair value at acquisition date. The fair value of property is the estimated amount for which a property could be exchanged on the date of valuation between a willing buyer and a willing VHOOHU LQ DQ DUP¶V OHQJWK WUDQVDFWLRQ DIWHU SURSHU PDUNHting wherein the parties had each acted knowledgeably, prudently and without compulsion. The fair value of other items of plant and equipment is based on the quoted market prices for similar items.

When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Property, plant and equipment are derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised in profit or loss.

(ii) Subsequent costs

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in the profit or loss as incurred.

'FWURGE*QNFKPIU$GTJCF (200401008252) 81 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies (CoQW¶G

(d) Property, plant and equipment &RQW¶G

(iii) 'HSUHFLDWLRQ

Depreciation is recognised in the profit or loss on straight line basis to write off the cost of each asset to its residual value over its estimated useful life. Leased assets are depreciated over the shorter of the lease term and their useful lives.

Property, plant and equipment are depreciated based on the estimated useful lives of the assets as follows:

Motor vehicles 5 years Office and lab equipment, furniture and fittings 3 years to 10 years Computer, software and peripherals 2 years to 5 years Educational tools 3 years to 5 years Electrical installation 5 years to 10 years Renovation 3 years to 10 years

The residual values, useful lives and depreciation method are reviewed at each reporting period end to ensure that the amount, method and period of depreciation are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the property, plant and equipment.

(e) Leases

As lessee

The Group and the Company recognise a ROU asset and a lease liability at the lease commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or site on which it is located, less any lease incentives received.

'FWURGE*QNFKPIU$GTJCF (200401008252) 82 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting PoliciHV &RQW¶G

(e) Leases &RQW¶G

As lessee &RQW¶G

The ROU asset is subsequently measured at cost less any accumulated depreciation, accumulated impairment loss and, if applicable, adjusted for any remeasurement of lease liabilities. The policy of recognition and measurement of impairment losses is in accordance with Note 3(m)(i) to the financial statements.

The ROU asset under cost model is depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term. The estimated useful lives of the ROU assets are determined on the same basis as those of property, plant and equipment as follows:

Leasehold land and building 50 years Lease of land Over lease period Motor vehicles 5 years Computer, software and peripherals Over lease period Office Over lease period

The ROU assets are subject to impairment.

The lease liability is initially measured at the present value of future lease payments at the commencement date, discounted using the respective Group HQWLWLHV¶ Lncremental borrowing rates. Lease payments included in the measurement of the lease liability include fixed payments, any variable lease payments, amount expected to be payable under a residual value guarantee, and exercise price under an extension option that the Group and the Company are reasonably certain to exercise.

Variable lease payments that do not depend on an index or a rate and are dependent on a future activity are recognised as expenses in profit or loss in the period in which the event or condition that triggers the payment occurs.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in rate, or if the Group or the Company changes its assessment of whether it will exercise an extension or termination option.

'FWURGE*QNFKPIU$GTJCF (200401008252) 83 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant $FFRXQWLQJ3ROLFLHV &RQW¶G

(e) Leases (&RQW¶d)

As lessee &RQW¶G

Lease payments associated with short term leases and leases of low value assets are recognised on a straight-line basis as an expense in profit or loss. Short term leases are leases with a lease term of 12 months or less and do not contain a purchase option. Low value assets are those assets valued at less than RM20,000 (equivalent to USD5,000) each when purchased new.

As lessor

When the Group and the Company act as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. Leases in which the Group or the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases.

If the lease arrangement contains lease and non-lease components, the Group and the Company apply MFRS 15 Revenue from Contracts with Customers to allocate the consideration in the contract based on the stand-alone selling price.

The Group and the Company recognise assets held under a finance lease in its statement of financial position and presents them as a receivable at an amount equal to the net investment in the lease. The Group and the Company use the interest rate implicit in the lease to measure the net investment in the lease.

The Group and the Company recognise lease payments under operating leases as income on a straight-line basis over the lease term unless another systematic basis is more representative of the pattern in which benefit from the use of the underlying asset is diminished. The lease payment recognised is included as part of ³2WKHULQFRPH´ ,Qitial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

'FWURGE*QNFKPIU$GTJCF (200401008252) 84 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies (&RQW¶G

(f) Intangible assets

(i) Internally-generated intangible assets - research and development costs

Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when the Group can demonstrate: x the technical feasibility of completing the intangible asset so that the asset will be available for use or sale; x its intention to complete and its ability and intention to use or sell the asset; x how the asset will generate future economic benefits; x the availability of resources to complete; and x the ability to measure reliably the expenditure during development.

The amount initially recognised for internally±generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally- generated intangible asset can be recognised, development expenditure in recognised in profit or loss in the period in which it is incurred.

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful lives and amortisation methods are reviewed at the end of each reporting date, with the effect of any changes in estimate being accounted for on a prospective basis.

(ii) Intangible assets acquired in a business combination

Intangible assets acquired in a business combination and recognised separately from goodwill are initially recognised at their fair values at the acquisition date (which is regarded as their cost).

Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

'FWURGE*QNFKPIU$GTJCF (200401008252) 85 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting PoOLFLHV &RQW¶G

(f) Intangible assets &RQW¶G)

(iii) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over a period of 5 years. The estimated useful lives and amortisation methods are reviewed at the end of each reporting date, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

(iv) Derecognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.

See accounting policy Note 3(m)(i) to the financial statements on impairment of non-financial assets for intangible assets.

(g) Financial assets

Financial assets are recognised in the statements of financial position when, and only when, the Group or the Company becomes a party to the contractual provisions of the financial instrument.

When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at FVTPL, directly attributable transaction costs.

The Group and the Company determine the classification of their financial assets at initial recognition, and the categories include trade and other receivables.

'FWURGE*QNFKPIU$GTJCF (200401008252) 86 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies &RQW¶d)

(g) Financial assets (CRQW¶G

(i) Financial assets at amortised cost

The Group and the Company measure financial assets at amortised cost if both of the following conditions are met:

x The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and

x The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

(ii) Fair value through other comprehensive income

Debt instruments

A debt security is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

x it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

x its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Equity instruments

On initial recognition of an equity investment that is not held for trading, the Group and the Company may irrevocably elect to present subsequent changes in fair value in OCI on an investment-by-investment basis.

'FWURGE*QNFKPIU$GTJCF (200401008252) 87 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting PROLFLHV &RQW¶G

(g) Financial assets (CRQW¶G

(ii) Fair value through other cRPSUHKHQVLYHLQFRPH &RQW¶G

Equity instruments &RQW¶G)

Financial assets categorised as FVOCI are subsequently measured at fair value, with unrealised gains and losses recognised directly in OCI and accumulated under fair value reserve in equity. For debt instruments, when the investment is derecognised or determined to be impaired, the cumulative gain or loss previously recorded in equity is reclassified to the profit or loss. For equity instruments, the gains or losses are never reclassified to profit or loss.

The Group and the Company have not designated any financial assets as FVOCI.

(iii) Financial assets at fair value through profit or loss

All financial assets not classified as measured at amortised cost or FVOCI, as described above, are measured at FVTPL. This includes derivative financial assets (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument). On initial recognition, the Group and the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets categorised as FVTPL are subsequently measured at their fair value with gains or losses recognised in the profit or loss.

All financial assets, except for those measured at FVTPL and equity investments measured at FVOCI, are subject to impairment.

Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace concerned. All regular way purchases and sales of financial assets are recognised or derecognised on the trade date i.e., the date that the Group or the Company commit to purchase or sell the asset.

A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received for financial instrument is recognised in profit or loss.

'FWURGE*QNFKPIU$GTJCF (200401008252) 88 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies (CoQW¶G

(h) Financial liabilities

Financial liabilities are recognised when, and only when, the Company become a party to the contractual provisions of the financial instruments. All financial liabilities are recognised initially at fair value plus, in the case of financial liabilities not at fair value through profit or loss, directly attributable transaction costs.

After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.

(i) Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs when the guaranteed debtor fails to make payment when due.

Financial guarantee contracts are recognised initially as financial liabilities at fair value, net of transaction costs. Subsequently, the liability is measured at the higher of:

x the amount of the loss allowance; and x the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of MFRS 15 Revenue from Contracts with Customers.

'FWURGE*QNFKPIU$GTJCF (200401008252) 89 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting PolLFLHV &RQW¶G

(j) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the statements of financial position if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

(k) Inventories

Inventories comprise licenses, computer hardware and peripherals, computer system, educational tools, workbook and digital schools.

Inventories are stated at the lower of cost and net realisable value. Cost is determined on first-in-first-out basis and comprises the purchase price and incidentals incurred in bringing the inventories to their present location and condition.

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

(l) Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, bank balances, demand deposits, bank overdraft and highly liquid investments that are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value. For the purpose of statements of cash flows, cash and cash equivalents are presented net of bank overdrafts and pledged deposits.

(m) Impairment of assets

(i) Non-financial assets

The carrying amounts of non-financial assets (except for inventories and deferred tax assets) are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, the asseW¶V UHFRYHUDEOH DPRXQW LV HVWLPDWHG. For goodwill and intangible assets that have indefinite useful lives, or that are not yet available for use, the recoverable amount is estimated each period at the same time.

'FWURGE*QNFKPIU$GTJCF (200401008252) 90 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies (ConW¶G

(m) Impairment of assets (Cont¶d)

(i)Non-financial assets (Cont¶d)

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash- generating units. Subject to operating segment ceiling test, for the purpose of goodwill impairment testing, cash-generating units to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to a cash-generating unit or a group of cash-generating units that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or cash-generating unit is the greater of its value-in-use and its fair value less costs of disposal. In assessing value-in-use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash-generating unit.

An impairment loss is recognised if the carrying amount of an asset or cash-generating unit exceeds its estimated recoverable amount. Impairment loss is recognised in profit or loss. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amounts of any goodwill allocated to the cash-generating unit (group of cash-generating units) and then to reduce the carrying amounts of the other assets in the cash-generating unit (group of cash-generating units) on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at the end of each reporting period for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation or amortisation, had no impairment loss been recognised for asset in prior years. Such reversal is recognised in the profit or loss.

'FWURGE*QNFKPIU$GTJCF (200401008252) 91 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant $FFRXQWLQJ3ROLFLHV &RQW¶G

(m) Impairment of assets (CRQW¶G

(i) Financial assets

The Group and the Company recognise an allowance for expected credit losses (³(&/V´  IRU DOO debt instruments not held at FVTPL. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group and the Company expect to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-PRQWKV ³D-PRQWK(&/´ )RUWKRVH credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the WLPLQJRIWKHGHIDXOW ³DOLIHWLPH(&/´ 

For trade receivables, other receivables and inter-company balances, the Group and the Company apply a simplified approach in calculating ECLs. Therefore, the Group and the Company do not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group and the Company have established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

(n) Share capital

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Ordinary shares are equity instruments. Ordinary shares are recorded at the proceeds received, net of directly attributable incremental transaction costs. Ordinary shares are classified as equity.

Dividend dLVWULEXWLRQWRWKH&RPSDQ\¶VVKDUHKROGHUVLVUHFRJQLVHGDVDOLDELOLW\in the period they are approved by the Board of Directors except for the final dividend which is subject to approval by WKH&RPSDQ\¶s shareholders.

'FWURGE*QNFKPIU$GTJCF (200401008252) 92 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting PoliciHV &RQW¶G

(o) Provisions

Provisions are recognised when there is a present legal or constructive obligation that can be estimated reliably, as a result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be estimated reliably.

Provisions are reviewed at each end of the reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Any reimbursement that the Group can be virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision. The expense relating to any provision is presented in the statements of profit or loss and other comprehensive income net of any reimbursement.

(p) Employee benefits

(i) Short term employee benefits

Wages, salaries, bonuses and social security contributions are recognised as an expense in the reporting period in which the associated services are rendered by employees of the Group and of the Company. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensated absences. Short term non-accumulating compensated absences such as sick and medical leave are recognised when the absences occur.

The expected cost of accumulating compensated absences is measured as additional amount expected to be paid as a result of the unused entitlement that has accumulated at the end of the reporting period.

'FWURGE*QNFKPIU$GTJCF (200401008252) 93 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant AcFRXQWLQJ3ROLFLHV &RQW¶d)

(p) Employee benefits (&RQW¶G

(ii) Defined contribution plans

As required by law, companies in Malaysia make contributions to the state pension scheme, thH (PSOR\HH 3URYLGHQW )XQG ³(3)´  6RPH RI WKH GURXS¶V Ioreign subsidiaries also make contributions to their respective coXQWULHV¶VWDWXWRU\SHQVLRQVFKHPHV6XFKFRQWULEXWions are recognised as an expense in the profit or loss as incurred. Once the contributions have been paid, the Group and the Company have no further payment obligations.

(iii) Equity-settled share-based payment transaction

The Group and the Company operate an equity-settled, share-based compensation plan for the employees of the Group and of the Company. Employee services received in exchange for the grant of the share options is recognised as an expense in the profit or loss over the vesting periods of the grant with a corresponding increase in equity.

For options granted to the employees of the subsidiaries, the fair value of the options granted is recognised as cost of investment in the subsidiary companies over the vesting period with a corresponding adjustment to HTXLW\LQWKH*URXS¶VDQGLQWKH&RPSDQ\¶s financial statements.

The total amount to be expensed over the vesting period is determined by reference to the fair value of the share options granted, excluding the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting conditions are included in assumptions about the number of options that are expected to be vested. At the end of each reporting date, the Group and the Company revise its estimates of the number of share options that are expected to be vested. It recognises the impact of the revision of original estimates, if any, in the profit or loss, with a corresponding adjustment to equity.

When the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital when the options are exercised. When options are not exercised and lapsed, the share option reserve is transferred to retained profits.

'FWURGE*QNFKPIU$GTJCF (200401008252) 94 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting Policies &RQW¶G

(q) Revenue recognition

(i) Revenue from contracts with customers

Revenue is recognised when the Group and the Company satisfied a performance obligation ³32´ E\transferring a promised good or services to the customer, which is when the customer obtains control of the good or service. A PO may be satisfied at a point in time or over time. The amount of revenue recognised is the amount allocated to the satisfied PO.

The Group and the Company recognise revenue from the following major sources:

(i) Sale of goods

Revenue from sale of goods is recognised when control of the products has transferred, recognised upon delivery of goods and customers¶DFFHSWDQce.

Revenue is recognised based on the price specified in the contract net of the rebates, discounts and taxes. Under the standard contract terms, customers have a right of return within 30 days. At the point of sale, a refund liability and a corresponding adjustment to revenue are recognised for those product expected to be returned. At the same time, it has a right to recover the product when customers exercise their right of return, so consequently recognises a right to returned goods asset and a corresponding adjustment to the cost of inventories recognised in profit or loss. The Group do not have such contract terms with its customers on right of return.

A receivable is recognised by the Group when the goods are delivered as this represents the point in time at which the right to consideration is unconditional, because only the passage of time is required before payment is due. No element of financing is deemed present as the revenue recognised with a credit term of 30 days which is consistent with market practice.

(ii) School fees, supporting fees and activity income

School fees, supporting fees and activity income are recognised upon rendering of services and when the outcome of the transactions can be estimated reliably. In the event the outcome of the transaction could not be estimated reliably, revenue is recognised to the extent of the expenses incurred that are recoverable.

(iii) Dividend income

Dividend income is recognised when the Company¶V Uight to receive payment is established.

'FWURGE*QNFKPIU$GTJCF (200401008252) 95 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant AccountinJ3ROLFLHV &RQW¶G

(q) Revenue UHFRJQLWLRQ &RQW¶G

(i) Revenue from contracts with customers (cont¶d)

(iv) Management fee

Management fee is recognised on an accrual basis when the services are rendered.

(v) Royalty income

Royalty income is recognised on an accrual basis in accordance with the substance of the relevant agreement. It is recognised over time on a straight-line basis over the period of the agreement.

(vi) Lease income

Lease income is recognised on an accrual basis and is accounted for on a straight-line basis over the lease terms.

(vii) Interest income

Interest income is recognised on an accrual basis using the effective interest rate method.

(r) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of the assets, which are assets that necessarily take a substantial period of time to get ready for theirs intended use or sale, are capitalised as part of the cost of those assets assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. Borrowing costs consist of interest and other costs that the Group and the Company incurred in connection with the borrowing of funds.

The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of borrowing costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or completed.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

'FWURGE*QNFKPIU$GTJCF (200401008252) 96 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant AccountinJ3ROLFLHV &RQW¶G

(s) Income taxes

Tax expense in profit or loss comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to a business combination or items recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted by the end of the reporting period, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised using the liability method for all temporary differences between the carrying amounts of assets and liabilities in the statement of financial position and their tax bases. Deferred tax is not recognised for the temporary differences arising from the initial recognition of goodwill, the initial recognition of assets and liabilities in a transaction which is not a business combination and that affects neither accounting nor taxable profit or loss. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax is based on the expected manner of realisation or settlement of the carrying amount of the assets and liabilities, at the end of the reporting period. Deferred tax assets and liabilities are not discounted.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised. Deferred tax assets are reviewed at the end of each reporting period and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

'FWURGE*QNFKPIU$GTJCF (200401008252) 97 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

3. Significant Accounting PolicieV &RQW¶G

(t) Segments reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-makers are responsible for allocating resources and assessing performance of the operating segments and make overall strategic decisions. The *URXS¶VRSHUDWLQJVHJPents are organised and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.

(u) Contingencies

Where it is not probable that an inflow or an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the asset or the obligation is disclosed as a contingent asset or contingent liability, unless the probability of inflow or outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent assets or contingent liabilities unless the probability of inflow or outflow of economic benefits is remote.

'FWURGE*QNFKPIU$GTJCF (200401008252) 98 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

4. Property, Plant and Equipment

Leasehold equipment, Computers, Work land and Motor furniture software and Educational Electrical in building vehicles and fittings peripherals tools installation Renovation progress Total RM RM RM RM RM RM RM RM RM Group Cost At 1.3.2020 - 573,007 7,843,278 21,133,416 3,809,116 1,524,144 3,852,021 163,444 38,898,426 Additions - - 41,720 1,695,167 46,482 73,947 2,831,340 - 4,688,656 Reclassification - - 19,536 - - - - (19,536) - Disposal - (31,000) (10,326) (19,153) - - - - (60,479) Written off - - (11,028) (3,683,784) - - - - (3,694,812) Currency translation differences - - 25 2,364 - - - - 2,389 At 28.2.2021 - 542,007 7,883,205 19,128,010 3,855,598 1,598,091 6,683,361 143,908 39,834,180

'FWURGE*QNFKPIU$GTJCF (200401008252) 99 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

4. 3URSHUW\3ODQWDQG(TXLSPHQW &RQW¶G

Office and lab Leasehold equipment, Computers, Work land and Motor furniture software and Educational Electrical in building vehicles and fittings peripherals tools installation Renovation progress Total RM RM RM RM RM RM RM RM RM Group Accumulated depreciation At 1.3.2020 - 572,996 5,894,621 19,430,323 3,407,408 973,772 2,433,433 - 32,712,553 Charge for the financial year - - 418,635 1,580,405 201,481 115,671 576,644 - 2,892,836 Disposal - (30,999) (7,259) (13,833) - - - - (52,091) Written off - (11,024) (3,683,780) - - - - (3,694,804) Currency translation differences - 7 1,619 - - - - 1,626 At 28.2.2021 - 541,997 6,294,980 17,314,734 3,608,889 1,089,443 3,010,077 - 31,860,120

Accumulated impairment loss At 1.3.2020 - - - 72,566 - - - - 72,566 Currency translation differences - - - 624 - - - - 624 At 28.2.2021 - - - 73,190 - - - - 73,190

Carrying amount At 28.2.2021 - 10 1,588,225 1,740,086 246,709 508,648 3,673,284 143,908 7,900,870

'FWURGE*QNFKPIU$GTJCF (200401008252) 100 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

4. Property, PODQWDQG(TXLSPHQW &RQW¶G

Office and lab Leasehold equipment, Computers, Work land and Motor furniture software and Educational Electrical in building vehicles and fittings peripherals tools installation Renovation progress Total RM RM RM RM RM RM RM RM RM Group Cost At 1.3.2019 14,847,690 1,233,384 8,239,585 22,076,917 6,991,667 1,512,746 3,977,521 - 58,879,510 Adoption of MFRS 16 (14,847,690) (660,377) ------(15,508,067) At 1.3.2019, as restated - 573,007 8,239,585 22,076,917 6,991,667 1,512,746 3,977,521 - 43,371,443 Additions - - 27,621 509,785 44,029 - 60,573 163,444 805,452 Disposal of subsidiary company - - (89,737) (1,085,155) (3,251,857) - (61,143) - (4,487,892) Disposal - - (52,220) (114,923) (33,435) - - - (200,578) Written off - - (135,722) (281,069) (2,696) (15,635) (92,374) - (527,496) Currency translation differences - - (146,249) 27,861 61,408 27,033 (32,556) - (62,503) At 29.2.2020 - 573,007 7,843,278 21,133,416 3,809,116 1,524,144 3,852,021 163,444 38,898,426

'FWURGE*QNFKPIU$GTJCF (200401008252) 101 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

4. Property, PODQWDQG(TXLSPHQW &RQW¶d)

Office and lab Leasehold equipment, Computers, Work land and Motor furniture software and Educational Electrical in building vehicles and fittings peripherals tools installation Renovation progress Total RM RM RM RM RM RM RM RM RM Group Accumulated depreciation At 1.3.2019 1,013,707 937,980 5,827,113 19,443,981 4,599,922 844,399 2,310,424 - 34,977,526 Adoption of MFRS 16 (1,013,707) (374,214) ------(1,387,921) At 1.3.2019, as restated - 563,766 5,827,113 19,443,981 4,599,922 844,399 2,310,424 - 33,589,605 Charge for the financial year - 9,230 440,654 1,314,955 413,861 110,699 280,725 - 2,570,124 Disposal of subsidiary company - (80,213) (962,337) (1,619,963) - (34,930) - (2,697,443) Disposal - - (33,457) (108,835) (12,249) - - - (154,541) Written off - (119,200) (281,034) (2,691) (15,580) (89,613) - (508,118) Currency translation differences - - (140,276) 23,593 28,528 34,254 (33,173) - (87,074) At 29.2.2020 - 572,996 5,894,621 19,430,323 3,407,408 973,772 2,433,433 - 32,712,553

'FWURGE*QNFKPIU$GTJCF (200401008252) 102 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

4. Property, PODQWDQG(TXLSPHQW &RQW¶G)

Office and lab Leasehold equipment, Computers, Work land and Motor furniture software and Educational Electrical in building vehicles and fittings peripherals tools installation Renovation progress Total RM RM RM RM RM RM RM RM RM Group Accumulated impairment loss At 1.3.2019 - - - 72,434 - - - - 72,434 Currency translation differences - - - 132 - - - - 132 At 29.2.2020 - - - 72,566 - - - - 72,566

Carrying amount At 29.2.2020 - 11 1,948,657 1,630,527 401,708 550,372 1,418,588 163,444 6,113,307

'FWURGE*QNFKPIU$GTJCF (200401008252) 103 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

4. PrRSHUW\3ODQWDQG(TXLSPHQW &RQW¶G)

Office and lab Computer, equipment, software and furniture Educational peripherals and fittings tools Total RM RM RM RM Company Cost At 1.3.2020/28.2.2021 152,231 5,292 1,056 158,579

Accumulated depreciation At 1.3.2020 151,987 2,188 1,003 155,178 Charge for the financial year 177 529 52 758 Disposal - - - At 28.2.2021 152,164 2,717 1,055 155,936

Carrying amount At 28.2.2021 67 2,575 1 2,643

Cost At 1.3.2019 157,756 5,292 1,056 164,104 Disposal (5,525) - - (5,525) At 29.2.2020 152,231 5,292 1,056 158,579

Accumulated depreciation At 1.3.2019 154,826 1,658 792 157,276 Charge for the financial year 2,683 530 211 3,424 Disposal (5,522) - - (5,522) At 29.2.2020 151,987 2,188 1,003 155,178

Carrying amount At 29.2.2020 244 3,104 53 3,401

'FWURGE*QNFKPIU$GTJCF (200401008252) 104 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

4. Right of-Use Assets

Leasehold Computer land and Lease of Motor and building land vehicles peripherals Office Total RM RM RM RM RM RM Group Cost At 1.3.2020 14,847,690 10,112,669 660,377 4,777,555 775,212 31,173,503 Additions - - - - 2,053,919 2,053,919 Expiration of lease contract - - - (4,777,555) (328,283) (5,105,838) At 28.2.2021 14,847,690 10,112,669 660,377 - 2,500,848 28,121,584

Accumulated amortisation At 1.3.2020 1,256,997 337,089 506,289 4,541,812 365,921 7,008,108 Charge for the financial year 182,788 1,011,267 132,075 235,743 994,719 2,556,592 Expiration of lease contract - - - (4,777,555) (328,283) (5,105,838) At 28.2.2021 1,439,785 1,348,356 638,364 - 1,032,357 4,458,862

Carrying amount At 28.2.2021 13,407,905 8,764,313 22,013 - 1,468,491 23,662,722

'FWURGE*QNFKPIU$GTJCF (200401008252) 105 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

5. Right of-Use Assets (CoQW¶G

Leasehold Computer land and Lease of Motor and building land vehicles peripherals Office Total RM RM RM RM RM RM Group (Cont'd) Cost At 1.3.2019, ------Adoption of MFRS 16 14,847,690 - 660,377 4,777,555 464,792 20,750,414 At 1.3.2019, restated 14,847,690 - 660,377 4,777,555 464,792 20,750,414 Additions - 10,112,669 - - 310,420 10,423,089 At 29.2.2020 14,847,690 10,112,669 660,377 4,777,555 775,212 31,173,503

Accumulated amortisation At 1.3.2019, ------Adoption of MFRS 16 1,013,707 - 374,214 3,632,640 101,110 5,121,671 At 1.3.2019, restated 1,013,707 - 374,214 3,632,640 101,110 5,121,671 Charge for the financial year 243,290 337,089 132,075 909,172 264,811 1,886,437 At 29.2.2020 1,256,997 337,089 506,289 4,541,812 365,921 7,008,108

Carrying amount At 29.2.2020 13,590,693 9,775,580 154,088 235,743 409,291 24,165,395

Lease of land The Group had entered into an operating lease agreements for the use of land. The leases are for a period of 20 years with purchase option at the agreed purchase price of RM20 million included in the agreements. The purchase option must be exercised by the lessee within 5 years from the commencement date of the lease. The leases do not allow the Group and the Company to assign, transfer or sublease or create any charge, lien or trust in respect of or dispose of the whole or any part of the land. Tenancy is, however, allowed with the consent of the lessor.

'FWURGE*QNFKPIU$GTJCF (200401008252) 106 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

5. Right of-UVH$VVHWV &RQW¶G

Other assets The Group leases its motor vehicles and office space. The leases typically run for a period of 3 to 5 years. The Group also has certain leases of office space with lease term of 12 months or less and leases of office equipment with low value. The Group applies the µVKRUW-WHUPOHDVH¶ DQGµOHDVHRIORZ-value assHWV¶UHFRJQLWLon exemptions for the leases.

Leasehold Computer land and Lease of Motor and building land vehicles peripherals Office Total RM RM RM RM RM RM Company Cost At 1.3.2020 - - - - 7,527,118 7,527,118 Additions - - - - 6,430,450 6,430,450 At 28.2.2021 - - - - 13,957,568 13,957,568 Accumulated amortisation At 1.3.2020 - - - - 7,276,214 7,276,214 Charge for the financial year - - - - 1,322,646 1,322,646 At 28.2.2021 - - - - 8,598,860 8,598,860 Carrying amount At 28.2.2021 - - - - 5,358,708 5,358,708

'FWURGE*QNFKPIU$GTJCF (200401008252) 107 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

5. Right of-8VH$VVHWV &RQW¶G

Leasehold Computer land and Lease of Motor and building land vehicles peripherals Office Total RM RM RM RM RM RM

Company Cost At 1.3.2019, ------Adoption of MFRS 16 - - - - 7,527,118 7,527,118 At 1.3.2019, restated/29.2.2020 - - - - 7,527,118 7,527,118

Accumulated amortisation At 1.3.2019 ------Adoption of MFRS 16 - - - - 5,770,790 5,770,790 At 1.3.2019, - - - - 5,770,790 5,770,790 Charge for the financial year - - - - 1,505,424 1,505,424 At 29.2.2020 - - - - 7,276,214 7,276,214

Carrying amount At 29.2.2020 - - - - 250,904 250,904

(a) The leasehold land and building of the Group have been pledged as securities for banking facilities granted to a subsidiary company as disclosed in Note 20.

(b) Included in the above, motor vehicle, machineries and equipment with a carrying amount of RM22,013 (2020: RM154,088) of the Group are pledged as securities for the related lease liabilities as disclosed in Note 19.

'FWURGE*QNFKPIU$GTJCF (200401008252) 108 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

6. Intangible Assets

2021 2020 RM RM Intellectual properties Group Cost At 1.3.2020/1.3.2019 29,848,132 27,691,376 Addition 687,228 2,217,474 Written off (3,479,074) (60,718) At 28.2.2021/29.2.2020 27,056,286 29,848,132

Accumulated amortisation At 1.3.2020/1.3.2019 20,357,207 16,601,306 Charge for the financial year 3,696,183 3,794,356 Written off (2,384,693) (38,455) At 28.2.2021/29.2.2020 21,668,697 20,357,207

Carrying amount At 28.2.2021/29.2.2020 5,387,589 9,490,925

Intellectual properties represent development of educational software contents.

7. Investments in Subsidiary Companies

Company 2021 2020 RM RM Unquoted shares, at cost In Malaysia: 29,730,100 29,730,000 Acquisition during the financial year 339,300 100 Less: Impairment loss (19,630,967) (14,895,242) 10,438,433 14,834,858

Outside Malaysia: 13,846,837 13,846,834 Acquisition during the financial year - 3 Less: Impairment loss (13,846,832) (13,846,832) 5 5 10,438,438 14,834,863

'FWURGE*QNFKPIU$GTJCF (200401008252) 109 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. Investments in Subsidiary Companies &RQW¶G

Movement in the allowance for impairment losses are as follows:

Company 2021 2020 RM RM

At 1.3.2020/1.3.2019 28,742,074 23,772,235 Impairment loss during the financial year 4,735,725 4,969,839 At 28.2.2021/29.2.2020 33,477,799 28,742,074

Details of the subsidiary companies are as follows:

Place of business/ Effective Country of equity interest Name of companyincorporation 2021 2020 Principal activities %% Direct subsidiaries: Litespeed Education Singapore 100 100 Provision of Pte. Ltd. ("LES")* educational services

Eduspec Pte. Ltd. Singapore 100 100 Provision of IT ("EPL")* consultancy activities, IT development and other IT and computer related services Litespeed Education Malaysia 100 100 Provision of Programmes Sdn. educational services Bhd. ("LEP")

Eduspec Sdn. Bhd. Malaysia 100 100 Investment holding ("ESB")

Eduspec ACG Pte. Ltd. Singapore 100 100 Dormant ("ACG")*

Multiple Technology Malaysia 100 100 Providing computer MSC Sdn. Bhd. training and trading in ("MTM") computer and computer peripherals

'FWURGE*QNFKPIU$GTJCF (200401008252) 110 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. Investments in Subsidiary Companies (CoQW¶G

Details of the subsidiary companies are as follows:

Place of business/ Effective Country of equity interest Name of companyincorporation 2021 2020 Principal activities %%

Direct subsidiaries: (Cont'd) Eduspec HK Limited Hong Kong 100 100 Virtual schools ("EHKL")*

Cloud Direct Sdn. Malaysia 100 73.9 Providing services for Bhd. ("CDSB") development, deloyment of support mobile and server software application

5T3M Sdn. Bhd. Malaysia 100 100 Carry on the business ("5T3MSB") in edutainment (education and entertainment) segment which include building and operating stemthemed indoor experiential labs,stem theme park, stem learning centres franchise model and stem retails businesses, both instore and online estore that selling all range of stem gadgets

Innoscapemy Sdn. Bhd. Malaysia 70 To conduct business incubation and ("ISB") entrepreneurship development programs, training and workshop activities and to provide business incubator and office facilities and any other business which may be usefully carried on in connection with such business

'FWURGE*QNFKPIU$GTJCF (200401008252) 111 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. Investments in Subsidiary Companies (ConW¶d)

Details of the subsidiary companies are as follows:

Place of business/ Effective Country of equity interest Name of companyincorporation 2021 2020 Principal activities %%

Held by Eduspec Sdn. Bhd. Dynabook Computer Malaysia 92.67 92.67 Providing computer Centre (Perak) Sdn. training and trading in Bhd. ("DCCPK") computer and computer peripherals

Dynabook Computer Malaysia 82.67 82.67 Providing child Centre (Melaka) Sdn. enrichment programs Bhd. ("DCCMK")

Dynabook Computer Malaysia 100 100 Providing computer Centre (Sarawak) Sdn. training and trading in Bhd. ("DCCSW") computer and computer peripherals

Dynabook Computer Malaysia 100 100 Providing computer Centre (Penang) Sdn. training and trading in Bhd. ("DCCPG") computer and computer peripherals

'FWURGE*QNFKPIU$GTJCF (200401008252) 112 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. Investment in Subsidiary Companies &RQW¶G

Details of the subsidiary companies are as follows &RQW¶G

Place of business/ Effective Country of equity interest Name of companyincorporation 2021 2020 Principal activities %%

Held by Eduspec Sdn. Bhd. (Cont'd) Dynabook Computer Malaysia 90.53 90.53 Providing child Centre (Pantai Timur) enrichment programs Sdn. Bhd. ("DCCPT")

Dynabook Computer Malaysia 100 100 Providing computer Centre (M) Sdn. training and trading in Bhd. ("DCCM") computer and computer peripherals

Creative Educare (M) Malaysia 100 100 Marketing and operating Sdn. Bhd. ("CED") of robotics for schoool programs and other related enrichment programs

Open Academic Systems Malaysia 100 100 Providing research and Sdn. Bhd. ("OAS") develop educational software and technical books

Digital IT Solutions Sdn. Bhd. ("DITS") Malaysia 100 100 Trading in computer and peripherals, and technical maintenance support activities

Dynakids Sdn. Bhd. Malaysia 100 100 Provision and operation ("DYNAKIDS") of IT learning for the pre-school market and related activities

DES Sdn. Bhd. Malaysia 100 100 Research and development ("DES") of courseware on robotics for school programs and other related enrichment programs

'FWURGE*QNFKPIU$GTJCF (200401008252) 113 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. Investment in Subsidiary Companies (CRQW¶G

Details of the subsidiary companies are as follows &RQW¶G

Place of business/ Effective Country of equity interest Name of companyincorporation 2021 2020 Principal activities %%

Held by Eduspec Sdn Bhd (Cont'd) Dynabook Computer Malaysia 100 100 Providing computer training Centre (N.S.) Sdn. and trading in computer Bhd. ("DCCNS") peripherals

Eduspec Properties Malaysia 100 100 Investment holding Sdn. Bhd. ("EPSB")

Dynabook Computer Malaysia 100 100 Providing computer training Centre (Sabah) Sdn. and trading in computer Bhd. ("DCCSB") peripherals

Held by 5T3M Sdn. Bhd. 5T3M Kiddy Sdn. Bhd. Malaysia 100 100 Providing child ("5T3MKiddy")# enrichment programs

5T3M Retail Sdn. Bhd. Malaysia 100 100 Trading and development ("5T3MRetail")# of educational software, technical books and computer courses

5T3M LabCircuit Malaysia 97.33 97.33 Investment holding Sdn. Bhd. ("5T3MLab")#

5T3M Edupark Sdn. Bhd. Malaysia 100 100 Distribution of ("5T3MEduPark")# information technology related products

5T3M Academy Sdn. Bhd. Malaysia 100 100 Learning centre ("5T3MAcademy")

'FWURGE*QNFKPIU$GTJCF (200401008252) 114 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. Investment in Subsidiary Companies &RQW¶G

Details of the subsidiary companies are as follows: (ConW¶G

Place of business/ Effective Country of equity interest Name of companyincorporation 2021 2020 Principal activities %%

Held by Open Academic Systems Sdn. Bhd. Cube Solutions Malaysia 50 50 Design, develop and market Sdn. Bhd. ("CSSB") the "Esekolah" application, as the successor to the current all school application and to facilate and implement the productisation of the school management system ("SMS") and the marketing and promotion of the solution to the educational industry Held by Eduspec Pte. Ltd. : Eduspec (Thailand) Co. Thailand 49 49 Educational services Ltd. ("ETL")*^ in Thailand

Held by Eduspec HK Limited Centillion Robotics Limited ("CRL")* Hong Kong 100 100 Engaged in the business of robotics technology solution and high-tech education business and the marketing and distribution of software solutions in Hong Kong Held by Centillion Robotics Limited: Centillion Robotics (M) Malaysia 100 100 Training of education Sdn. Bhd. "(CRM") tools and programs, education solutions and training

'FWURGE*QNFKPIU$GTJCF (200401008252) 115 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. Investment in Subsidiary Companies &RQW¶G)

Details of the subsidiary companies are as follows: &RQW¶G

* Not audited by Messrs. UHY

^ In the previous financial year, EPL disposed of 11% of its shareholding in ETL and owns 49% of the total issued share capital of ETL upon the disposal. Nevertheless, EPL continues to have control over ETL by virtue of an agreement despite having less than half of the voting righWVLQ(7/DQGLQFOXGH(7/¶VUHVXOWVSRVLWLRQDQG performance in the GroXS¶VFRQVROLGDWHGILnancial statements.

# Previously held under ESB Sdn. Bhd.

## An impairment loss of RM4,735,725 (29.2.2020: RM4,969,839) is recognised in the statements of profit or loss and other comprehensive income for the financial year ended 28 February 2021, arising from write-down of the carrying amount to its fair value less costs to sell, derived from the fair value of the assets less fair value of the liabilities.

'FWURGE*QNFKPIU$GTJCF (200401008252) 116 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. Investment in Subsidiary Companies &RQW¶G

(a) The non-controlling interests at the end of the reporting period comprise the following:

Effective Equity Group interest Carrying amount 2021 2020 2021 2020 Company % % RM RM

CDSB - 26 - 469,030 ETL 51 51 (369,157) (382,767) Other individually immaterial subsidiaries (97,456) (44,774) (466,613) 41,489

(b) The summarised financial information (before intra-group elimination) for each subsidiary company that has non-controlling interests that are material to the Group is as follows:

CDSB ETL 2021 2020 2021 2020 RM RM RM RM

Summarised statements of financial position Non-current assets - 1,792,473 9,427 4,258 Current assets - 8,126 1,277,902 995,702 Current liabilities - (2,821,991) (2,175,442) (1,908,797) Net liabilities - (1,021,392) (888,113) (908,837)

'FWURGE*QNFKPIU$GTJCF (200401008252) 117 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. Investment in Subsidiary Companies &RQW¶G

(b) The summarised financial information (before intra-group elimination) for each subsidiary company that has non-controlling interests that are material to the Group is as follows: (CoQW¶G

CDSB ETL 2021 2020 2021 2020 RM RM RM RM Summarised statements of profit or loss and other comprehensive income Revenue - 126,424 1,394,124 1,185,450 (Loss)/Profit for the financial year - (384,390) 26,687 24,294 Total comprehensive (loss)/income - (384,390) 26,687 24,294 Total comprehensive (loss)/income attributable to non-controlling interests - (100,326) 13,610 12,390

Summarised statements of cash flows Net cash flows from/ (used in) operating activities - 286,403 (142,116) (108,173) Net cash flows (used in)/from investing activities - (286,059) 145,195 (221,913) Net increase/(decrease) in cash and cash equivalents - 344 3,079 (330,086)

'FWURGE*QNFKPIU$GTJCF (200401008252) 118 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. Investment in Subsidiary Companies &RQW¶G

(c) Acquisition of subsidiary companies

Acquisition during the financial year

During the financial year, the Company acquired/incorporated:

(i) a 70% equity interest in InnoVFDSHP\6GQ%KG ³,6B´ .

(ii) an acquisition of 113,478 shares in &ORXG 'LUHFW 6GQ %KG ³&'6%´  representing the 26.1% equity interest in CDSB. Upon completion of the Acquisition, CDSB will be a wholly owned subsidiary of the Company.

Acquisition of non-controlling interest during the financial year

The effect of changes in the equity interest in CDSB that is attributable to owners of the Company:

2021 RM

Carrying amount of non-controlling interest acquired (469,030) Consideration paid to non-controlling interest 339,300 Gain on acquisition of subsidiary company (129,730)

Acquisition in the previous financial year

In the previous financial year, the Group acquired/incorporated:

(i) an acquisition of 4,000 shares in Eduspec $&*3WH/WG ³$&*´  representing the 40% equity interest in ACG for a total consideration of RM3 (SGD1). Upon completion of the Acquisition, ACG will be a wholly owned subsidiary of the Company

(ii) a 100% equity interest in 5T3M SdQ %KG ³706%´  Fomprising 100 ordinary shares of RM1.00 each for a total cash consideration of RM100 which represents the entire issued and paid up capital of 5T3MSB.

(iii) a 50% equity interest in Cube SolutioQV6GQ%KG ³&66%´), comprising 50 ordinary shares of RM100 each for a total cash consideration of RM5,000.

(iv) 100% equity interest in 5T3M Academy 6GQ %KG ³70Academy´  comprising 100 ordinary shares of RM1.00 each for a total cash consideration of RM100 which represents the entire issued and paid up capital of 5T3MSB.

'FWURGE*QNFKPIU$GTJCF (200401008252) 119 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. Investment in Subsidiary Companies &RQW¶G

(c) Acquisition of subsidiary companLHV &RQW¶G

Acquisition in the previous financial year (CRQW¶G

In the previous financial year, the Group acquired/incorporated: &RQW¶G

(iv) The Group re-organises its internal group structure:

(i) a wholly-owned subsidiary of Company, ESB Sdn. Bhd. transferred its entire shareholdings in 5T3M Kiddy Sdn. Bhd. (formerly known as Eduspec International Cultural Network Sdn. Bhd.) ³70.LGG\´  to 5T3MSB at total consideration of RM 355,000.

(ii) a wholly-owned subsidiary of Company, ESB Sdn. Bhd. transferred its entire shareholdings in 5T3M Retail Sdn. Bhd. (formerly known as DGB Education Sdn. Bhd.) ³705HWDLO´ to 5T3MSB at total consideration of RM100,000.

(iii)a wholly-owned subsidiary of Company, ESB Sdn. Bhd. transferred its entire shareholdings in5T3M LabCircuit Sdn. Bhd. (formerly known as Time Communication Partners Sdn. Bhd.) ³70/DE´ to 5T3MSB at total consideration of RM291,998.

(iv)a wholly-owned subsidiary of Company, ESB Sdn. Bhd. transferred its entire shareholdings in 5T3M Edupark Sdn. Bhd. (formerly known as Time ,7LQ( 6DEDK 6GQ%KG  ³70(GXSDUN´ to 5T3MSB at total consideration of RM 100,000.

Fair value consideration transferred

29.2.2020 RM Fair value consideration transferred 5,103

'FWURGE*QNFKPIU$GTJCF (200401008252) 120 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. ,QYHVWPHQWLQ6XEVLGLDU\&RPSDQLHV &RQW¶G

(c) Acquisition of subsidiary companies (Cont¶G

Acquisition of non-controlling interest in the previous financial year

The effect of changes in the equity interest in ACG that is attributable to owners of the Company:

29.2.2020 RM

Carrying amount of non-controlling interest acquired 253,634 Consideration paid to non-controlling interest - Increase in parent's equity 253,634

(d) Disposal of subsidiary company

Disposal in the previous financial year

(GXVSHF3WH/WG ³(3/´ , a wholly owned subsidiary of the Company had on 19 March 2019 entered into a Memorandum of Agreement for the disposal of 31,000 common shares in First Eduspec ,QF ³)(,´ UHSresenting 62% equity interest in the issued and paid-up capital of FEI for a cash consideration of PHP56,646,916.90 or equivalent to RM4,376,335. Upon completion of the Disposal, (3/¶V shareholdings in FEI will be reduced from 95% to 33%. The disposal completed on 29 May 2019.

'FWURGE*QNFKPIU$GTJCF (200401008252) 121 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

7. ,QYHVWPHQWLQ6XEVLGLDU\&RPSDQLHV &RQW¶G

(d) Disposal of subsidiary company (CoQW¶G

Disposal in the previous financiaO\HDU &RQW¶G

The net assets of the above mentioned subsidiary company at the date of disposal were:

29.2.2020 At Date of Disposal Carrying Amount RM

Property, plant and equipment (Note 4) 1,790,449 Deferred tax assets (Note 21) 59,614 Trade and other receivables 3,171,881 Cash and bank balances 338,058 Provision for taxation (381,092) Trade and other payables (3,509,352) 1,469,558 Reserve on consolidation reversed (585,412) Net assets disposed of 884,146

Analysis of the effects of disposed subsidiary company was:

29.2.2020 RM

Proceeds received 4,687,400 Less: Net assets disposed of (884,146) Gain on disposal of subsidiary company 3,803,254

29.2.2020 RM

Proceeds received 4,687,400 Less: Cash and bank balances disposed of (338,058) Net cash inflow for disposal of subsidiary company 4,349,342

'FWURGE*QNFKPIU$GTJCF (200401008252) 122 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

8. Investment in Associates

Group 2021 2020 RM RM Unquoted shares, at cost Outside Malaysia 3,222,478 329,726 Transferred from/(to) investment in subsidiary companies - 470,594 Gain on deemed cost - 2,024,312 Share of post-acquisition reserve (932,891) 397,846 At 28 February/29 February 2,289,587 3,222,478

Details of the associates are as follows:

Place of business/ Effective Country of equity interest Name of company incorporation 2021 2020 Principal activities %%

DTT Eduspec Joint Stock Vietnam 40 40 Providing information Company ("DTTE")*# outsourcing and consulting services to schools and educational institutions in Vietnam

First Eduspec Inc. Philippines 33 33 Providing information ("FEI")*# outsourcing and consultingservices to schools and educational institutions in Philippines * Not audited by Messrs. UHY

# The share of results in this associate is based on the unaudited financial statements of the associate.

'FWURGE*QNFKPIU$GTJCF (200401008252) 123 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

8. Investment in Associates &RQW¶G

(a) The summarised financial information of the associate are as follows:

Group 2021 2020 RM RM

Summarised statements of financial position

Non-current assets 2,167,272 2,947,393 Current assets 2,826,787 5,967,313 Current liabilities (7,863,101) (9,367,425) Net liabilities (2,869,042) (452,719)

Interests in associates 33% - 40% 33% - 40% Group's share of net liabilities (1,192,493) (393,810)

Summarised statements of profit or loss and other comprehensive income

Revenue 2,720,444 12,355,805 (Loss)/Profit after tax (2,960,576) 2,012,541 Total comprehensive (loss)/profit (2,960,576) 2,012,541

'FWURGE*QNFKPIU$GTJCF (200401008252) 124 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

8. Investment in Associates &RQW¶G

(b) The summarised unaudited financial information for the associate that is material to Group is as follows:

FEI DTTE 2021 2020 2021 2020 RM RM RM RM Summarised statements of financial position

Non-current assets 1,306,486 1,905,394 860,786 1,041,999 Current assets 2,754,015 5,939,045 72,772 28,268 Current liabilities (3,419,405) (4,805,547) (4,443,696) (4,561,878) Net assets/ (liabilities) 641,096 3,038,892 (3,510,138) (3,491,611) Interests in associates 33% 33% 40% 40%

*URXS¶VVKDUH of net asset/ (liabilities) 211,562 1,002,834 (1,404,055) (1,396,644)

'FWURGE*QNFKPIU$GTJCF (200401008252) 125 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

8. ,QYHVWPHQWLQ$VVRFLDWHV &RQW¶G

(b) The summarised unaudited financial information for the associate that is material to Group is as follows: (Cont¶G

FEI DTTE 2021 2020 2021 2020 RM RM RM RM Summarised statements of profit or loss and other comprehensive income

Revenue 2,255,323 11,985,326 465,121 370,479 (Loss)/Profit for the financial year (2,826,942) 2,204,764 (133,634) (192,223) Total comprehensive (loss)/profit (2,826,942) 2,204,764 (133,634) (192,223)

*URXS¶VVKDUHRI (loss)/profit for the financial year (932,891) 727,572 - -

9. Other Investment

Group Company 2021 2020 2021 2020 RM RM RM RM Unquoted shares, at FVTPL At 28.2.2021/29.2.2020 - ---

Investments in unquoted shares is measured at Level 3 of fair value.

Loss of fair value RM3,483,242 is recognised LQ³RWKHURperating expenseV´OLQHLWHPRI the statements of profit or loss and other comprehensive income for the financial year ended 29 February 2020.

'FWURGE*QNFKPIU$GTJCF (200401008252) 126 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

10. Goodwill on Consolidation

Group 2021 2020 RM RM

At cost At 1.3.2020/1.3.2019 6,874,435 8,471,844 Disposal during the financial year - (1,597,409) At 28.2.2021/29.2.2020 6,874,435 6,874,435

Accumulated impairment losses At 1.3.2020/1.3.2019 447,209 - Impairment loss during financial year 2,818,446 447,209 At 28.2.2021/29.2.2020 3,265,655 447,209

Carrying amount At 28.2.2021/29.2.2020 3,608,780 6,427,226

The carrying amounts of goodwill allocated to each cash-generating units ³&*8´ are as follows:

Group 2021 2020 RM RM

MTM 3,608,780 3,608,780 CDSB - 2,818,446 3,608,780 6,427,226

The recoverable amount of the goodwill allocated to each CGU is determined based on a value-in-use, determined by discounted future cash flows. The impairment of goodwill is recognised when the recoverable amount is estimated at lower than the cost of investment. During the financial year, full impairment loss on goodwill allocated to CDSB of RM2,818,446 were recognised in the profit of loss.

'FWURGE*QNFKPIU$GTJCF (200401008252) 127 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

10. Goodwill on Consolidation &RQW¶G

(a) The Group assessed the recoverable amounts of goodwill allocated and full impairment loss on goodwill allocated to CDSB of RM2,818,446 were recognised in the profit of loss. The recoverable amounts of the CGU are determined using the value-in-use approach, and this is derived from the present value of the future cash flows from the operating segments computed based on the projections of financial budgets approved by management covering a period of 5 years. The key assumptions used in the determination of the recoverable amounts are as follows:

Terminal Average Budgeted Average Growth Discount Growth Rate Profit/Gross Margin Rate Rate ± 2022 - 2026 2022 - 2026 2022 - 2026 infinity MTM 30% 3% 10.39% 0%

(b) The key assumptions represent managemeQW¶V DVVHVsment of future trends in the regional Education industry and are based on both external sources and internal sources.

Management has determined the average budgeted profit margin and weighted average growth rate based on past performance and its expectation of market development. The discount rates used are computed based on the weighted average cost of capital of the industry that the Group operated in.

Sensitivity to Changes in Assumptions

The management believes that no reasonably possible changes in any of the above key assumptions would cause the carrying value of the goodwill to be materially higher than its recoverable amount other than as follows:

The changes in assumptions are particularly sensitive in the following areas:

CGU-MTM

A decrease of 2.5 percentage point in the gross margin rate used would have resulted in an impairment loss of NIL (29.02.2020: RM447,209).

'FWURGE*QNFKPIU$GTJCF (200401008252) 128 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

11. Inventories

Group Company 2021 2020 2021 2020 RM RM RM RM At cost: Finished goods 27,506,829 27,794,267 27,192,467 27,399,594

At net reaslisable value: Finished goods 1,196,738 1,039,712 - -

At 28.2.2021/ 29.2.2020 28,703,567 28,833,979 27,192,467 27,399,594

Recognised in profit or loss: Inventories recognised as cost of sales 2,647,147 5,981,957 230,463 1,384,637 Inventories (writeback)/ written down (157,026) 255,124 - -

12. Trade Receivables

Group 2021 2020 RM RM

Trade receivables 5,304,816 9,001,529 Less: Allowance for impairment loss (3,542,870) (6,645,463) 1,761,946 2,356,066

Trade receivables are non-interest bearing and are generally on 30 days (2020: 30 days) term. They are recognised at their original invoice amounts which represent their fair values on initial recognition.

'FWURGE*QNFKPIU$GTJCF (200401008252) 129 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

12. Trade Receivables &RQW¶G

Movements in the allowance for impairment losses are as follows:

Group 2021 2020 RM RM

At 1.3.2020/1.3.2019 6,645,463 5,211,517 Adoption of MFRS 9 - 656,335 At 1.3.2020/1.3.2019, as restated 6,645,463 5,867,852 Additional 96,812 1,167,887 Recovered (24,421) - Reversal (39,426) (509,950) Written off (2,999,908) - Currency translation difference (135,650) 119,674 At 28.2.2021/29.2.2020 3,542,870 6,645,463

The loss allowance account in respect of trade receivables is used to record loss allowance. Unless the Group and the Company are satisfied that recovery of the amount is possible, the amount considered irrecoverable is written off against the receivable directly.

The aged analysis of trade receivables as at the end of the reporting period:

Specific Expected Net amount allowance credit losses Gross amount Group RM RM RM RM 2021

Neither pass due nor impaired 766,793 - 6,621 760,172 Past due not impaired: Less than 30 days 12,375 - - 12,375 31 to 60 days 64,365 - 5,176 59,189 61 to 90 days 167,379 - 26,151 141,228 More than 90 days 4,293,904 3,252,350 252,572 788,982 4,538,023 3,252,350 283,899 1,001,774 5,304,816 3,252,350 290,520 1,761,946

'FWURGE*QNFKPIU$GTJCF (200401008252) 130 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

12. Trade Receivables &RQW¶d)

Specific Expected Net amount Gross amount allowance credit losses RM RM RM RM Group 2020

Neither pass due nor impaired 1,270,884 - 41,628 1,229,256 Past due not impaired: Less than 30 days 778,716 - 1,732 776,984 31 to 60 days 65,458 - 64,950 508 61 to 90 days 83,270 - 4,673 78,597 More than 90 days 6,803,201 6,414,592 117,888 270,721 7,730,645 6,414,592 189,243 1,126,810 9,001,529 6,414,592 230,871 2,356,066

Trade receivables that are neither past due nor impaired are creditworthy receivables with. good payment records with the Group and the Company. As at 28 February 2021, trade receivables of RM1,001,774 (29.2.2020: RM1,126,810) were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default.

The trade receivables of the Group that are individually assessed to be impaired amounting to RM3,252,350 (29.2.2020: RM6,414,592), relate to customers that are in financial difficulties, have defaulted on payments and/or have disputed on the billings. These balances are expected to be recovered through the debts recovery process.

'FWURGE*QNFKPIU$GTJCF (200401008252) 131 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

13. Other Receivables

Group Company 2021 2020 2021 2020 RM RM RM RM

Other receivables - Third parties 69,661,857 79,514,701 68,823,391 68,803,623 Less: Allowance for impairment losses (69,551,159) (75,505,619) (68,751,381) (68,751,381) 110,698 4,009,082 72,010 52,242 Deposits 9,290,731 3,945,108 3,561,076 3,561,076 Prepayments 8,675,809 4,083,692 445,022 1,350,795 Recoverable expenses 582,628 1,907,933 79,127 93,462 18,659,866 13,945,815 4,157,235 5,057,575

Recoverable expenses represent expenses paid upfront on behalf of third parties.

Movement in the allowances for impairment losses of other receivables are as follows:

Group Company 2021 2020 2021 2020 RM RM RM RM

At 1.3.2020/1.3.2019 75,505,619 31,601,560 68,751,381 30,613,000 Additional - 43,902,798 - 38,138,381 Written off (5,959,344) - - - Currency translation difference 4,884 1,261 - - At 28.2.2021/ - 29.2.2020 69,551,159 75,505,619 68,751,381 68,751,381

'FWURGE*QNFKPIU$GTJCF (200401008252) 132 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

13. Other RecHLYDEOHV &RQW¶G

Lifetime Credit Total allowance impaired allowance RM RM RM

Group 2021 At 1.3.2020 - 75,505,619 75,505,619 Written off - (5,959,344) (5,959,344) Currency translation difference - 4,884 4,884 At 28.2.2021 - 69,551,159 69,551,159

2020 At 1.3.2019 - 31,601,560 31,601,560 Additional - 43,902,798 43,902,798 Currency translation difference - 1,261 1,261 At 29.2.2020 - 75,505,619 75,505,619

Lifetime Credit Total allowance impaired allowance RM RM RM Company 2021 At 1.3.2020/ 28.2.2021 - 68,751,381 68,751,381

2020 At 1.3.2019 - 30,613,000 30,613,000 Additional - 38,138,381 38,138,381 At 29.2.2020 - 68,751,381 68,751,381

(a) Included in other receivables is an amount of RM67,081,595 (29.2.2020: RM72,803,939) due from a former subsidiary company, PT Eduspec Indonesia. The collectability of the long overdue amount is uncertain in view of market and economic uncertainties due to outbreak of Coronavirus pandemic. Hence, an additional impairment loss of RM43,902,798 was recognised in the line item of ³QHW impairment losses on financial assets´LQWKHGroXS¶VVWDtement of profit or loss and other comprehensive loss for the financial year ended 29 February 2020 which resulted full impairment loss on the amount due from the former subsidiary company.

(b) Included in deposits is an amount of RM3,175,116 (29.2.2020: RM3,175,116) paid to an education content provider as a performance security.

'FWURGE*QNFKPIU$GTJCF (200401008252) 133 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

14. Amount Due from/(to) Subsidiary Companies

Company 2021 2020 RM RM

Amount due from subsidiary companies: Non-trade related 44,412,619 28,269,275 Less: Accumulated impairment losses (30,049,788) (25,580,579) 14,362,831 2,688,696

Amount due to subsidiary companies: Non-trade related (14,451,425) (23,993,541)

These amounts are unsecured, interest-free and repayable/payable on demand. The amount will be settled in cash.

Movements in the allowance for impairment loss are as follows:

Company 2021 2020 RM RM

At 1.3.2020/1.3.2019 25,580,579 32,743,154 Additional 4,938,118 10,255,064 Reversal (468,909) (17,417,639) At 28.2.2021/29.2.2020 30,049,788 25,580,579

15. Amount Due from/(to) Associates

Group Company 2021 2020 2021 2020 RM RM RM RM Amount due from: Trade related 1,447,082 4,084,194 1,565,452 4,087,017 Non-trade related 3,342,511 3,297,210 4,351,080 2,860,835 Less: Accumulated impairment losses (1,858,468) (1,854,826) (1,431,362) (1,431,362) 2,931,125 5,526,578 2,919,718 5,516,490

'FWURGE*QNFKPIU$GTJCF (200401008252) 134 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

15. Amount Due from/(to) Associates &RQW¶G

Movements in the allowance for impairment loss are as follows:

Group Company 2021 2020 2021 2020 RM RM RM RM

At 1.3.2020/1.3.2019 1,854,826 1,812,642 1,431,362 1,431,362 Additional - 41,696 - - Currency translation difference 3,642 488 - - At 28.2.2021/ - 29.2.2020 1,858,468 1,854,826 1,431,362 1,431,362

The trade balances are subject to the normal trade credit terms ranging from 30 to 60 (2020: 30 to 60) days. The amount will be settled in cash.

The non-trade balance is unsecured, interest-free and repayable on demand. The amount will be settled in cash.

16. Fixed Deposits with Licensed Banks

The fixed deposits with licensed banks of the Group and of the Company at the end of the reporting period bore interest at effective interest rates ranging from 1.85% to 1.95% (29.2.2020: 3.35%) per annum. The fixed deposits have 1 month to 12 months (29.2.2020: 12 months) maturity periods.

Group Company 2021 2020 2021 2020 RM RM RM RM

Deposits with licensed banks - Conventional 13,167 12,396 - - - Islamic 2,000,000 - 2,000,000 - 2,013,167 12,396 2,000,000 -

Less: Fixed deposits not for short term funding requirements (13,167) (12,396) - - 2,000,000 - 2,000,000 -

'FWURGE*QNFKPIU$GTJCF (200401008252) 135 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

17. Share Capital

Group 2021 2020 2021 2020 Number of Shares RM RM

Issued and fully paid up with no par value At 1.3.2020/ 1.3.2019 1,697,934,745 1,101,813,500 45,598,136 140,403,366 Issuance of shares pursuant to: - arising from conversion of RCPS 2,199,999,996 596,121,245 33,000,000 12,500,000 Share consolidation (1,948,967,380) - - - Share capital reduction - - - (107,305,230) At 28.2.2021/ 29.2.2020 1,948,967,361 1,697,934,745 78,598,136 45,598,136

Company 2021 2020 2021 2020 Number of Shares RM RM

Issued and fully paid up with no par value 1.3.2019 1,697,934,745 1,101,813,500 54,317,539 149,122,769 Issuance of shares pursuant to: - arising from of RCPS 2,199,999,996 596,121,245 33,000,000 12,500,000 Share consolidation (1,948,967,380) - - - Share capital reduction - - - (107,305,230) At 28.2.2021/ 29.2.2020 1,948,967,361 1,697,934,745 87,317,539 54,317,539

'FWURGE*QNFKPIU$GTJCF (200401008252) 136 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

17. Share Capital (ConW¶G

During the financial year, the Group and the Company increased its issued and paid up share capital from RM45,598,136 to RM78,598,136 and RM54,317,539 to RM87,317,539 respectively by way of conversion of 33,000,000 Redeemable Convertible Preference SKDUHV ³5&36´) of RM1 each amounting to RM33,000,000 to new ordinary shares.

The new ordinary shares issued during the financial year rank pari passu in all respects with the existing ordinary shares of the Company.

During the financial year, the Group¶s and the Company¶V 3,897,934,741 ordinary shares was being consolidated into 1,948,967,361 ordinary shares pursuant to the share consolidation.

The holders of ordinary shares are entitled to receive dividends as when declared by the Company, and are entitled to one vote per share at meetings of the Company.

18. Reserve

Group Company 2021 2020 2021 2020 Note RM RM RM RM

Redeemable convertible preference shares 24 46,840 - 46,840 -

Reverse acquisition reserve (a) (18,570,000) (18,570,000) - -

Foreign exchange translation reserve (b) 496,917 371,113 - -

(Accumulated losses)/ Retained earning (19,049,642) 4,407,879 (57,573,907) (43,090,877) (37,075,885) (13,791,008) (57,527,067) (43,090,877)

'FWURGE*QNFKPIU$GTJCF (200401008252) 137 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

18. Reserve (Cont¶d)

(a) Reverse acquisition reserve

The non-distributable reserve arose from reverse acquisition of ESB represents the difference between purchase consideration, the share capital of ESB and the enlarged share capital of the Company.

(b) Foreign exchange translation reserve

The foreign exchange translation reserve represents exchange differences arising from the translation of the foreign subsidiaries whose functional currencies are different from that of the GURXS¶VSresentation currency.

(c) Warrants 2019/2024

The Warrants B are constituted by a Deed Poll B. The salient features of the Warrants B are as follows:

(a) Each Warrant entitles the registered holder to subscribe for one new ordinary share at the exercise price of RM0.05 per ordinary share for each warrant held, subject to adjustments in accordance with the provisions of the Deed Poll which is to be satisfied in cash;

(b) The Warrants may be exercised at any time within 5 years from the date of issuance of the Warrants. Warrants not exercised during the exercise period will thereafter lapse and cease to be valid. All Warrants mature on 30 September 2024; and

During the financial year, the existing number of 550,906,743 Warrants B will be adjusted into 275,453,358 consolidated Warrants B pursuant to the share consolidation.

As at 28 February 2021, the total number of Warrants B that remain unexercised were 275,453,358 (29.2.2020: 550,906,743).

'FWURGE*QNFKPIU$GTJCF (200401008252) 138 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

19. Lease Liabilities

Group Company RM RM RM RM RM RM RM RM

Group At 1.3.2020/1.3.2019 10,635,558 - 238,645 - Adoption MFRS 16 - 1,801,623 1,633,277 At 1.3.2020/1.3.2019, restated 10,635,558 1,801,623 238,645 1,633,277 Additions 2,053,919 10,423,089 6,430,450 - Payments (2,042,328) (1,589,154) (1,211,813) (1,394,632) At 28.2.2021/ 29.2.2020 10,647,149 10,635,558 5,457,282 238,645

Presented as: Non-Current 8,830,876 9,187,592 4,239,918 - Current 1,816,273 1,447,966 1,217,364 238,645 10,647,149 10,635,558 5,457,282 238,645

The maturity analysis of lease liabilities of the Group and of the Company at the end of the reporting period:

Within one year 2,159,658 1,796,436 1,440,000 240,000 Later than one year and not later than two years 9,987,475 10,637,692 4,560,000 - 12,147,133 12,434,128 6,000,000 240,000 Less: Future finance charges (1,499,984) (1,798,570) (542,718) (1,355) Present value of lease liabilities 10,647,149 10,635,558 5,457,282 238,645

The Group leases various land, building, motor vehicles and office equipment. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

'FWURGE*QNFKPIU$GTJCF (200401008252) 139 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

20. Loans and Borrowings

Group Company 2021 2020 2021 2020 RM RM RM RM Floating rates Secured Bank overdraft 432,562 583,348 432,562 583,348 Bankers' acceptance - 296,315 - 296,315 Foreign currency loans against imports - 55,404 - 55,404 Term loan 12,758,481 20,227,003 - Short-term revolving 10,082,664 10,028,666 6,382,664 6,328,666 credit 23,273,707 31,190,736 6,815,226 7,263,733

Unsecured Term loan 3,369,023 4,269,457 - - 26,642,730 35,460,193 6,815,226 7,263,733

Analysed as: Repayable within twelve months Bank overdraft 432,562 583,348 432,562 583,348 Bankers' acceptance - 296,315 - 296,315 Foreign currency loans against imports - 55,404 - 55,404 Term loan 2,682,196 10,394,945 - - Short-term revolving credit 10,082,664 10,028,666 6,382,664 6,328,666 13,197,422 21,358,678 6,815,226 7,263,733

Repayable after twelve months Term loan 13,445,308 14,101,515 - -

'FWURGE*QNFKPIU$GTJCF (200401008252) 140 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

20. Loans and Borrowings &RQW¶G

(a) Bank overdraft

The bank overdrafts of the Group and of the Company bore interest at effective interest rate of 7.75% (29.2.2020: 7.75%) per annum at the end of the reporting period.

(b) %DQNHUV¶DFFHSWDnce

In the previous year, the bankHUV¶ DFFHSWDQFHV RI WKH *URXS DQG of the Company bore interest at an effective interest rate of 4.03% per annum at the end of the reporting period and are secured by a third party charge over the leasehold land and building of the Group.

(c) Foreign currency loans against imports

In the previous year, the foreign currency loans against imports of the Group and of the Company bore interest at an effective interest rate of 4.52% per annum above the %DQN¶VIXnding cost of the relevant currency at the end of the reporting period and are secured by a third party charge over the leasehold land and building of the Group.

(d) Term loans

Details of the repayment terms are as follows:

Number Date of Interest Term of Monthly Monthly Commencement Rate per Loan Instalments Instalment of Repayment Annum Group 2021 2020 RM RM

1 24 Tranche 3 18 March 2019 9.00% - 7,931,461 - 7,931,461

'FWURGE*QNFKPIU$GTJCF (200401008252) 141 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

20. Loans and Borrowings (CoQW¶G

(d) Term loans (Cont¶G

Details of the repayment terms are as follows: (CoQW¶G

Number Date of Interest Term of Monthly Monthly Commencement Rate per Loan Instalments Instalment of Repayment Annum Group 2021 2020 RM RM

2 240 38,671 1 May 2015 4.65% 5,876,567 5,647,048 240 39,216 1 May 2015 4.65% 5,870,376 5,637,624 60 39,462 1 May 2015 6.85% 1,011,538 1,010,870 12,758,481 12,295,542 12,758,481 20,227,003

Number Date of Interest Term of Monthly Monthly Commencement Rate per Loan Instalments Instalment of Repayment Annum Group 2021 2020 RM RM

1 65,000 3December 2020 5.85% 3,369,023 4,269,457 24 40,000

The term loans bore interest at effective interest rates ranging from 4.65% to 6.85% (29.2.2020: 4.65% to 12.96%) per annum at the end of the reporting period and are secured by:

Term Loan 1

(i) an assignment of proceeds from the contracts signed between a subsidiary and its customers;

(ii) a legal assignment and charge over the collection account and sinking funds account respectively;

(iii) a debenWXUHRYHUWKHVXEVLGLDU\¶VSUHVHQt and future fixed and floating assets;

(iv) a corporate guarantee of the Company; and

(v) a joint and several guarantee of certain directors of the Group.

'FWURGE*QNFKPIU$GTJCF (200401008252) 142 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

20. Loans and Borrowings (CRQW¶G

(d) Term loans (&RQW¶G

Term Loan 2

(i) an assignment of proceeds from the contracts signed between a subsidiary and its customers;

(ii) a corporate guarantee of the Company; and

(iii) first party charge over a leasehold land and building of the Group as disclosed in Note 5.

Term Loan 3

The loan is unsecured, interest bearing at 5.85% per annum (29.2.2020: 1.08% per month) Pursuant to the renewal loan agreement, the loan is repayable on 21 December 2022.

(e) Short-term revolving credit

The short-term revolving credit of the Group and of the Company bore interest at an effective interest rates ranging from 3.65% to 4.46% (29.2.2020: 3.65% to 4.46%) per annum at the end of the reporting period and are secured by a third-party charge over the leasehold land and building of the Group.

21. Deferred Taxation

Group Company 2021 2020 2021 2020 RM RM RM RM

At 1.3.2020/1.3.2019 9,989 134,749 - - Disposal of subsidiary (Note 7) - 59,614 - - Recognised in profit or loss (Note 28) 435 (171,177) - - Recognised for RCPS (Note 24) 14,792 - 14,792 - Currency translation difference - (13,197) - - At 28.2.2021/29.2.2020 25,216 9,989 14,792 -

'FWURGE*QNFKPIU$GTJCF (200401008252) 143 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

21. Deferred TaxatiRQ &RQW¶G

The net deferred tax assets and liabilities shown on the statements of financial position after appropriate offsetting are as follows:

Group Company 2021 2020 2021 2020 RM RM RM RM

Deferred tax assets (1,487,552) (301,782) - - Deferred tax liabilities 1,512,768 311,770 - - 25,216 9,988 - -

The components of deferred tax assets and deferred tax liabilities prior to offsetting are as follows:

Unabsorbed Unutilised capital tax losses allowance Others Total Group RM RM RM RM Deferred tax assets At 1.3.2020 (48,698) (253,084) - (301,782) Recognised in profit or loss (77,603) (1,089,869) (18,298) (1,185,770) Disposal of subsidiary company - - - - Currency translation difference - - - - At 28.2.2021 (126,301) (1,342,953) (18,298) (1,487,552)

At 1.3.2019 (48,698) (245,869) - (294,567) Recognised in profit or loss - (53,632) - (53,632) Disposal of subsidiary company - 59,614 - 59,614 Currency translation difference - (13,197) - (13,197) At 29.2.2020 (48,698) (253,084) - (301,782)

'FWURGE*QNFKPIU$GTJCF (200401008252) 144 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

21. Deferred TD[DWLRQ &RQW¶G

The components of deferred tax assets and deferred tax liabilities prior to offsetting are as follows : (cont¶d)

Accelerated capital allowance Provision Total RM RM RM Group Deferred tax liabilities At 1.3.2020 311,770 - 311,770 Recognised in profit or loss 1,186,206 14,792 1,200,998 At 28.2.2021 1,497,976 14,792 1,512,768

At 1.3.2019 429,316 - 429,316 Recognised in profit or loss (117,546) - (117,546) At 29.2.2020 311,770 - 311,770

Deferred tax assets have not been recognised in respect of the following items:

Group Company 2021 2020 2021 2020 RM RM RM RM

Unabsorbed capital allowances 8,875,543 6,158,673 2,861 - Unutilised tax losses 48,936,854 31,708,254 16,853,448 6,618,066 Others 496,135 45,128 490 - 58,308,532 37,912,055 16,856,799 6,618,066

'FWURGE*QNFKPIU$GTJCF (200401008252) 145 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

22. Trade Payables

The normal credit terms granted to the Group range from 30 to 60 (29.2.2020: 30 to 60) days.

23. Other Payables

Group Company 2021 2020 2021 2020 RM RM RM RM

Other payables 4,435,131 4,387,622 394,142 1,618,002 Accruals 5,680,851 4,592,794 618,796 1,083,750 Deposits received 10,609,768 10,609,768 10,237,769 10,237,768 Advanced billing 1,001,034 1,481,779 70,340 167,972 21,726,784 21,071,963 11,321,047 13,107,492

Included in deposits received are amount of RM10,237,768 (2020: RM10,237,768) related to performance security and content license fees incurred based on Master Distribution Agreement with an educational content provider namely CM Asia Learning Pte Ltd in which the Company shareholding is 19.98%.

Included in advance billing is the billing of royalty income in advance amounted to RM250,639 (2020:RM569,216) and will be recognised as royalty income based on actual utilisation of licenses.

'FWURGE*QNFKPIU$GTJCF (200401008252) 146 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

24. 2% Cumulative redeemable convertible preference VKDUHV ³5&36´

Group and Company 2021 2020 RM RM

Issued and fully paid: At 1.3.2020/1.3.2019 - - Issued during the financial year 34,000,000 12,500,000 Converted during the financial year (33,000,000) (12,500,000) At 28.2.2021/29.2.2020 1,000,000 -

The carrying amount of the equity component of RCPS at the reporting date is arrived at as follow:

Group and Company 2021 2020 RM RM

Equity Face value of RCPS 1,000,000 - less: Liability component of RCPS at initial recognition (938,368) - Equity component at RCPS at initial recogtion 61,632 -

Analysed as Equity component, net of deferred tax 46,840 - Deferred tax liability 14,792 - 61,632 -

The carrying amount of the liability component of RCPS at the reporting date is arrived at as follow:

Group and Company 2021 2020 RM RM

Liability At 1.3.2020/1.3.2019 - - Recognised during the financial year 938,368 - Liability component of RCPS at initial recognition 938,368 -

'FWURGE*QNFKPIU$GTJCF (200401008252) 147 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

24. 2% Cumulative redeemable convertible preferenFHVKDUHV ³5&36´ &RQW¶G

On 31 May 2019, the Company entered into subscription agreement of RCPS. The issue price of the RCPS has been fixed at RM0.10 each.

The salient features of the RCPS are as follows:

(a) The Company shall at its discretion and subject to the availability of distributable profits pay out a targeted preferential dividend of 2% per annum calculated on the issue price of the RCPS until the date of redemption of the RCPS.

(b) The preferential dividends, if declared, shall be payable semi-annually in arrears, subject to availability of distributable profits. Although semi-annual payments are anticipated as disclosed above, the Company may defer, in part or in whole, such payments depending on availability of distriEXWDEOH SURILWV ³'HIerred DiYLGHQGV´  For avoidance of doubt, the Company is not obliged to pay any dividends or Deferred Dividends, as the case may be, in the event that it has insufficient distributable profits.

(c) The RCPS shall be convertible, at the option of the holder of RCPS, at any time commencing from the Issue Date up to the relevant redemption date of the RCPS, into such number of fully-paid new ordinary shares of the Company, without payment of any consideration, in accordance with the Conversion Ratio.

(d) On the RCPS Maturity Date, unless redeemed by the Company, any remaining outstanding RCPS must be converted into Conversion Shares. Any remaining RCPS which are not converted due to a breach of the RCPS Conversion Cap shall be redeemed by the Company.

(e) An RCPS does not carry any right to vote at any general meeting of the Company except for the right to vote in person or by proxy or by attorney at such meeting. Where the holders of RCPS are entitled to vote at any general meeting, every RCPS shall on a poll, carry one vote for each ordinary share into the RCPS are convertible upon exercise of the Conversion Rights (at the Conversion Ratio) and every ordinary share shall, notwithstanding any other provision of the Constitution of the Company, carry one vote for each of such share.

(f) The holders of RCPS shall have the right to receive notices, reports and accounts and attend meetings, of which shareholders of ordinary shares are entitled.

'FWURGE*QNFKPIU$GTJCF (200401008252) 148 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

25. Revenue

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM Revenue from contract with customers Activity income 485,160 865,709 - - Sale of goods 3,511,753 4,349,274 - - School fees 4,353,461 13,874,960 - - Royalty income 890,229 5,586,030 822,579 5,714,163 Management fees income - - 792,000 792,000 9,240,603 24,675,973 1,614,579 6,506,163

Revenue from other sources Dividend income - 1,169,676 - - 9,240,603 25,845,649 1,614,579 6,506,163

Timing of revenue recognition:

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM

Revenue from contract with customers At a point of time 4,425,674 10,021,818 428,761 4,806,835 Overtime 4,814,929 14,654,155 1,185,818 1,699,328 9,240,603 24,675,973 1,614,579 6,506,163

'FWURGE*QNFKPIU$GTJCF (200401008252) 149 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

26. Finance Costs

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM

Interest expenses on: Lease liabilities 417,118 165,682 228,187 45,368 Overdraft 35,932 56,101 35,932 56,101 Short term revolving credit 445,809 472,821 329,899 314,770 Trust receipts 251 22,563 251 22,563 Term loans 347,477 1,888,834 - - Others 136 64,924 - 21,129 1,246,723 2,670,925 594,269 459,931

27. Loss Before Tax

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM

$XGLWRUV¶UHPXQHUDWLRQ - current year 331,322 335,828 100,000 100,000 - under/(over) provision in prior year 1,000 (8,980) - - - non-audit services 5,000 5,000 5,000 5,000 Amortisation of intangible assets 3,696,183 3,794,356 - - Amortisation of right-of-use assets 2,556,592 1,886,437 1,322,646 1,505,424 Bad debts written off 73,615 21,341 - - Deposits written off 4,750 1,171 - - Depreciation of property, plant and equipment 2,892,836 2,570,124 758 3,424 Property, plant and equipment written off 8 19,378 - -

'FWURGE*QNFKPIU$GTJCF (200401008252) 150 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

27. Loss Before Tax (Cont¶d)

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM

Impairment on: - goodwill 2,818,446 447,209 - - - other investments - 3,483,242 - 3,239,240 - trade receivables 96,812 1,167,887 - - - other receivables - 43,902,798 - 38,138,381 - amount due from subsidiary companies - - 4,938,118 10,255,064 - investments in a subsidiary company - - 4,735,725 4,969,839 - amount due from an associate - 41,696 - - Intangible assets written off 1,094,381 22,263 - - Inventories (writeback)/ written down (157,026) 255,124 - - Loss/(Gain) on foreign exchange: - realised 17,876 (412,795) 35,592 44,341 - unrealised 8,984 1,251,709 27,669 422,167

'FWURGE*QNFKPIU$GTJCF (200401008252) 151 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

27. Loss Before Tax (CRQW¶G

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM

Lease expenses relating to : - Short-term leases 4,300 49,834 - - - Low value leases 159,669 314,144 - - Bad debts recovered (24,421) - - - Gain on disposal of property, plant and equipment (34,329) (29,444) - (897) Gain on disposal of subsidiary company - (3,803,254) - - Gain on deemed cost of investment in associate - (2,024,312) - - Gain on acquisition of subsidiary company (129,730) - - - Government incentives (293,134) - - - Interest income (134,484) (47,696) (129,032) (29,385) Management fees receivables - - (1,614,579) (792,000) Lease income (5,429) (1,320,000) (1,320,000) Share of results in: - associates 932,891 (727,572) - - Reversal of impairment losses on: - trade receivables (39,426) (509,950) - - - amount due from subsidiary companies - - (468,909) (17,417,639) Waiver of bank borrowings (2,452,547) - - -

'FWURGE*QNFKPIU$GTJCF (200401008252) 152 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

28. Taxation

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM

Tax expense recognised in profit or loss Current year 11,115 423,915 - 6,494 (Over)/Under provision in prior year (9,615) 270,755 558 - 1,500 694,670 558 6,494

Deferred tax: (Note 21) Origination and reversal of temporary differences 12,064 (155,918) - - Overprovision in prior year (11,629) (15,259) - - 435 (171,177) - - Tax expense for the financial year 1,935 523,493 558 6,494

Malaysian income tax is calculated at the statutory income tax rate of 24% (29.02.2020: 24%) of the estimated assessable profit for the financial year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.

'FWURGE*QNFKPIU$GTJCF (200401008252) 153 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

28. Taxation (Cont¶G)

A reconciliation of income tax expense applicable to the loss before tax at the statutory tax rate to income tax expense at the effective tax rate of the Group and of the Company are as follows:

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM

Loss before tax (23,493,124) (53,902,073) (14,480,938) (41,159,309)

Tax at the statutory tax rate of 24% (2020: 24%) (5,638,350) (12,936,498) (3,475,425) (9,878,234) Share of results in: - associates 223,894 (174,617) - - Expenses not deductible for tax purposes 687,711 14,527,684 1,049,097 14,639,661 Income not subject to tax (282,240) (1,448,269) (30,968) (4,180,449) Utilisation of unabsorbed tax losses and capital allowances brought forward (27,958) (937,882) - (574,484) Deferred tax assets not recognised during the financial year 4,923,112 1,165,028 2,457,296 - (Over)/Underprovision in prior year - current tax (9,615) 270,755 558 - - deferred tax (11,629) (15,259) - - Withholding tax - 284,397 - - Effect of differential in tax rates of subsidiaries 137,010 (211,846) - - Tax for the financial year 1,935 523,493 558 6,494

'FWURGE*QNFKPIU$GTJCF (200401008252) 154 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

28. 7D[DWLRQ &RQW¶d)

The Group and the Company has the following estimated untilised capital allowances and unused tax losses available for carry forward to offset against future taxable profits. The said amount is subject to approval by the tax authorities.

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM

Unutilised tax losses 49,463,102 32,077,822 16,853,448 6,615,473 Unabsorbed capital allowances 14,471,193 12,276,704 2,861 - 63,934,295 44,354,526 16,856,309 6,615,473

Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profits will be available against which the Group and the Company can utilise the benefits thereform.

With effect from year of assessment 2019, unutilised tax losses are allowed to be carried forward up to a maximum of seven (7) years of assessments under the current tax legislation in Malaysia. The other temporary difference does not expire under tax legislation.

Pursuant to Section 44(5F) of the Income Tax Act 1967 in Malaysia, the unutilised tax losses can only be carried forward until the following years of assessment.

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM Unutilised tax losses to be to be carried forward until : - YA 2025 15,740,624 15,740,624 3,417,035 3,417,035 - YA 2026 5,565,526 5,565,526 3,198,438 3,198,438 - YA 2027 4,020,052 4,020,052 - - - YA 2028 16,188,533 - 10,237,975 - 41,514,735 25,326,202 16,853,448 6,615,473

'FWURGE*QNFKPIU$GTJCF (200401008252) 155 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

29. Loss per Share

(a) Basic loss per share

The basic earnings per share are calculated based on the consolidated loss for the financial year/period attributable to owners of the parent and the weighted average number of ordinary shares in issue during the financial year as follows:

Group 28.2.2021 29.2.2020

Loss attributable to owners of the Company (RM) (23,455,987) (54,270,778) Weighted average number of ordinary shares: At 1.3.2020/1.3.2019 1,697,934,745 1,101,813,500 Effect of shares issued from conversion of RCPS 2,199,999,996 131,138,929 Effect of shares consolidation (1,948,967,380) - At 28.2.2021/29.2.2020 1,948,967,361 1,232,952,429

Basic loss per share (sen) (1.20) (4.40)

(b) Diluted loss per share

Diluted earnings per share are calculated based on the adjusted consolidated loss for the financial year/period attributable to the owners of the parent and the weighted average number of ordinary shares in issue during the financial year/period have been adjusted for the dilutive effects of all potential ordinary shares as follows:

Group 28.2.2021 29.2.2020

Loss attributable to owners of the Company (RM) (23,455,987) (54,270,778) Weighted average number of ordinary shares: 1,948,967,361 1,232,952,429 1,948,967,361 1,232,952,429

Diluted loss per share (sen) (1.20) (4.40)

'FWURGE*QNFKPIU$GTJCF (200401008252) 156 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

30. Contingent Liabilities

Company 28.2.2021 29.2.2020 RM RM

Corporate guarantee given to licensed banks for banking facilities granted to subsidiaries 22,841,145 30,607,388

31. Staff Costs

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM

Staff costs: - salaries, wages and bonus (excluding Directors) 6,678,935 8,778,060 1,299,669 1,104,390 - defined contribution plan 767,411 1,070,113 181,919 163,860 - other benefits 184,612 137,656 23,906 17,471 7,630,958 9,985,829 1,505,494 1,285,721

'FWURGE*QNFKPIU$GTJCF (200401008252) 157 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

32. Reconciliation of Liabilities Arising from Financing Activities

The table below details changes in the liabilities of the Group and of the Company arising from financing activities, including both cash and non-cash changes:

Foreign At Waiver of Financing New lease exchange At 1.3.2020 bank borrowings cash flows (Note 19) adjustments 28.2.2021 RM RM RM RM RM RM

Group Bankers' acceptance 296,315 - (296,315) - - - Short term revolving credit 10,028,666 - 329,899 - (275,901) 10,082,664 Foreign currency loan against imports 55,404 - (55,404) - - - Term loans 24,496,460 (2,452,547) (6,191,188) - 274,779 16,127,504 Lease liabilities 10,635,558 - (2,042,328) 2,053,919 - 10,647,149 45,512,403 (2,452,547) (8,255,336) 2,053,919 (1,122) 36,857,317

Company Bankers' acceptance 296,315 - (296,315) - - - Short term revolving credit 6,328,666 - 329,899 - (275,901) 6,382,664 Foreign currency loan against imports 55,404 - (55,404) - - - Lease liability 238,645 - (1,211,813) 6,430,450 - 5,457,282 6,919,030 - (1,233,633) 6,430,450 (275,901) 11,839,946

'FWURGE*QNFKPIU$GTJCF (200401008252) 158 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

32. Reconciliation of Liabilities Arising from Financing Activities &RQW¶G

The table below details changes in the liabilities of the Group and of the Company arising from financing activities, including both cash and non-cash changes: &RQW¶G)

Foreign At MFRS 16 Financing New lease exchange At 1.3.2019 adjustment cash flows (Note 19) adjustments 29.2.2020 RM RM RM RM RM

Group Bankers' acceptance 280,979 - 15,336 - - 296,315 Short term revolving credit 10,025,640 - (230,344) - 233,370 10,028,666 Foreign currency loan against imports 48,177 - 7,227 - - 55,404 Term loans 24,678,250 - (654,936) - 473,146 24,496,460 Finance lease liabilities 271,157 (271,157) - - - - Lease liabilities - 1,801,623 (1,589,154) 10,423,089 - 10,635,558 35,304,203 1,530,466 (2,451,871) 10,423,089 706,516 45,512,403

Company Bankers' acceptance 280,979 - 15,336 - - 296,315 Short term revolving credit 6,325,640 - (230,344) - 233,370 6,328,666 Foreign currency loan against imports 48,177 - 7,227 - - 55,404 Lease liabilities - 1,633,277 (1,394,632) - - 238,645 6,654,796 1,633,277 (1,602,413) - 233,370 6,919,030

'FWURGE*QNFKPIU$GTJCF (200401008252) 159 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

33. Related Party Disclosure

(a) Identifying related parties

For the purposes of these financial statements, parties are considered to be related to the Group if the Group or the Company has the ability, directly or indirectly, to control or joint control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control. Related parties may be individuals or other entities.

Related parties also include key management personnel defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key management personnel comprise the Directors and management personnel of the Group, having authority and responsibility for planning, directing and controlling the activities of the Group entities directly or indirectly.

(b) Significant related party transactions

Related party transactions have been entered into in the normal course of business under negotiated terms. In addition to the related party balances disclosed elsewhere in the financial statements, the significant related party transactions of the Group and of the Company are as follows:

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM (i) Subsidiary companies - Management fee charged to - - 792,000 792,000 - Rental charged to - - 1,320,000 1,320,000 - Royalty charged to - - 393,818 907,328 - Interest charged by - - (533,471) (718,663)

(ii) Associates - Royalty charged to 428,761 4,806,835 428,761 4,806,835

'FWURGE*QNFKPIU$GTJCF (200401008252) 160 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

33. Related Party Disclosure (Cont¶G

(c) Compensation of key management personnel

Remuneration of Directors and other members of key management are as follows:

Group Company 28.2.2021 29.2.2020 28.2.2021 29.2.2020 RM RM RM RM Existing Directors Executive Directors: - Salaries, bonus and allowances 465,527 645,966 336,021 464,250 - Defined contribution plans 45,154 55,716 45,154 55,716 - Other benefits 1,798 1,616 1,798 1,616

Non-executive Directors: - Fees 138,000 131,420 138,000 131,420 650,479 834,718 520,973 653,002

Former Directors Executive Directors: - Fees - - - - - Salaries, bonus and allowances - 3,013 - 3,013 - Defined contribution plans - - - - - Other benefits - - - - - 3,013 - 3,013

'FWURGE*QNFKPIU$GTJCF (200401008252) 161 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

34. Segment Information

Operating segments are prepared in a manner consistent with the internal reporting provided to the Group Executive Committee as its chief operating decision maker in order to allocate resources to segments and to assess their performance. For management purposes, the Group is organised into business units based on their products and services provided.

The primary segment reporting format is determined to be geographical segment as the *URXS¶V ULVks and rates of return are affected predominantly by the differences in the countries in which the Group operated.

As the Group operates primarily in the development and provision of IT learning programs and educational services segment, consequently, no segment information is prepared in respect of business segments.

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and its measured consistently with profit or loss in the consolidated financial statements.

Transactions between segments are carried out on agreed terms between both parties. The effects of such inter-segment transactions are eliminated on consolidation. The measurement basis and classification are consistent with those adopted in the previous financial year.

'FWURGE*QNFKPIU$GTJCF (200401008252) 162 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

34. Segment Information &RQW¶G Total Adjustment and Malaysia Singapore Hong Kong Thailand Segment eliminations Group RM RM RM RM RM RM RM

28.2.2021 Revenue External revenue 7,489,768 356,711 - 1,394,124 9,240,603 - 9,240,603 Inter-segment revenue 3,190,419 155,867 101,640 - 3,447,926 (3,447,926) - Total revenue 10,680,187 512,578 101,640 1,394,124 12,688,529 (3,447,926) 9,240,603

Results Segment results (12,372,098) 112,947 (227,522) 184,290 (12,302,383) - (12,302,383) Interest income 91,669 41,791 - 1,024 134,484 - 134,484 Depreciation of property, plant and equipment (2,883,739) (6,337) - (2,760) (2,892,836) - (2,892,836) Amortisation of intangible assets (3,696,183) - - - (3,696,183) - (3,696,183) Amortisation of right-of-use assets (2,556,592) - - - (2,556,592) - (2,556,592) (21,416,943) 148,401 (227,522) 182,554 (21,313,510) - (21,313,510) Finance cost (826,225) - (420,498) - (1,246,723) - (1,246,723) Share of results in associates (932,891) - - - - (932,891) (Loss)/Profit before tax (23,176,059) 148,401 (648,020) 182,554 (22,560,233) - (23,493,124) Income tax expense (1,935) - - - (1,935) - (1,935) (Loss)/Profit after tax (23,177,994) 148,401 (648,020) 182,554 (22,562,168) - (23,495,059)

'FWURGE*QNFKPIU$GTJCF (200401008252) 163 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

34. Segment Information (Cont¶d)

Total Adjustment and Malaysia Singapore Hong Kong Thailand Segment eliminations Group RM RM RM RM RM RM RM

28.2.2021 Segment Assets Segment assets 97,210,027 2,950,590 51,680 1,287,329 101,499,626 - 101,499,626 Tax recoverable 869,986 - - - 869,986 - 869,986 98,080,013 2,950,590 51,680 1,287,329 102,369,612 - 102,369,612 Segment Liabilities Segment liabilities (55,824,752) (543,784) (3,407,274) (1,512,948) (61,288,758) - (61,288,758) Deferred tax liabilities (25,216) - - - (25,216) - (25,216) (55,849,968) (543,784) (3,407,274) (1,512,948) (61,313,974) - (61,313,974)

Other Segment Items Addition to non-current assets other than financial instruments - Property, plant and equipment 4,680,755 - - 7,901 4,688,656 - 4,688,656 - Intangible assets 687,228 - - - 687,228 - 687,228 Impairment loss on - Goodwill - - - - - 2,818,446 2,818,446 - Trade and other receivables 96,812 - - - 96,812 - 96,812

'FWURGE*QNFKPIU$GTJCF (200401008252) 164 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

34. Segment Information (&RQW¶G

Total Adjustment and Malaysia Singapore Hong Kong Thailand Philippines Segment eliminations Group RM RM RM RM RM RM RM RM

29.2.2020 Revenue External revenue 21,280,248 1,906,815 233,414 1,082,259 1,342,913 25,845,649 - 25,845,649 Inter-segment revenue 4,794,176 622,919 14,664 103,191 - 5,534,950 (5,534,950) - Total revenue 26,074,424 2,529,734 248,078 1,185,450 1,342,913 31,380,599 (5,534,950) 25,845,649

Results Segment results (50,094,247) 6,018,550 79,876 160,570 79,752 (43,755,499) - (43,755,499) Interest income 4,966 41,696 - 1,034 - 47,696 - 47,696 Depreciation of property, plant and equipment (2,357,092) (50,977) - (3,730) (158,325) (2,570,124) - (2,570,124) Amortisation of intangible assets (3,794,356) - - - - (3,794,356) - (3,794,356) Amortisation of right-of-use assets (1,886,437) - - - - (1,886,437) - (1,886,437) (58,127,166) 6,009,269 79,876 157,874 (78,573) (51,958,720) - (51,958,720) Finance cost (2,098,185) - (572,740) - - (2,670,925) - (2,670,925) Share of results in associates ------727,572 727,572 (Loss)/Profit before tax (60,225,351) 6,009,269 (492,864) 157,874 (78,573) (54,629,645) 727,572 (53,902,073) Income tax expense (39,574) (483,919) - - - (523,493) - (523,493) (Loss)/Profit after tax (60,264,925) 5,525,350 (492,864) 157,874 (78,573) (55,153,138) - (54,425,566)

'FWURGE*QNFKPIU$GTJCF (200401008252) 165 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

34. Segment Information (CoQW¶G

Total Adjustment and Malaysia Singapore Hong Kong Thailand Philippines Segment eliminations Group RM RM RM RM RM RM RM RM

29.2.2020 Segment Assets Segment assets 94,878,512 4,672,391 107,656 999,960 - 100,658,519 - 100,658,519 Tax recoverable 496,945 - - - - 496,945 - 496,945 95,375,457 4,672,391 107,656 999,960 - 101,155,464 - 101,155,464 Segment Liabilities Segment liabilities (62,077,859) (1,371,266) (4,342,817) (1,405,390) - (69,197,332) - (69,197,332) Deferred tax liabilities (9,989) - - - - (9,989) - (9,989) Provision for taxation (291) (99,235) - - - (99,526) - (99,526) (62,088,139) (1,470,501) (4,342,817) (1,405,390) - (69,306,847) - (69,306,847)

Other Segment Items Addition to non-current assets other than financial instruments - Property, plant and equipment 805,452 - - - - 805,452 - 805,452 - Intangible assets 2,217,474 - - - - 2,217,474 - 2,217,474 Impairment loss on - Goodwill ------447,209 447,209 - Other investment 3,483,242 - - - - 3,483,242 - 3,483,242 - Trade and other receivables 45,070,685 - - - - 45,070,685 - 45,070,685 - Amount due from associate - 41,696 - - - 41,696 - 41,696

'FWURGE*QNFKPIU$GTJCF (200401008252) 166 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial Instruments

(a) Classification of financial instruments

Financial assets and financial liabilities are measured on an ongoing basis either at fair value or at amortised cost. The principal accounting policies in Note 3 describe how the classes of financial instruments are measured, and how income and expense, including fair value gains and losses, are recognised.

The following table analyses the financial assets and liabilities in the statements of financial position by the class of financial instruments to which they are assigned, and therefore by the measurement basis:

Financial Financial assets at liabilities at amortised cost amortised cost Total RM RM RM

Group 2021 Financial assets Trade receivables 1,761,946 - 1,761,946 Other receivables 9,984,057 - 9,984,057 Amount due from associates 2,931,125 - 2,931,125 Fixed deposit with licensed banks 2,013,167 - 2,013,167 Cash and bank balances 4,580,407 - 4,580,407 21,270,702 - 21,270,702

Financial liabilities Trade payables - 1,333,727 1,333,727 Other payables - 20,725,750 20,725,750 Lease liabilities - 10,647,149 10,647,149 Loans and borrowings - 26,642,730 26,642,730 - 59,349,356 59,349,356

'FWURGE*QNFKPIU$GTJCF (200401008252) 167 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial Instruments (ConW¶d)

(a) Classification of financial instruments &RQW¶G

Financial Financial assets at liabilities at amortised cost amortised cost Total RM RM RM Company 2021 Financial assets Other receivables 3,712,213 - 3,712,213 Amount due from subsidiary companies 14,362,831 - 14,362,831 Amount due from associates 2,919,718 - 2,919,718 Fixed deposit with licensed banks 2,000,000 - 2,000,000 Cash and bank balances 2,291,212 - 2,291,212 25,285,974 - 25,285,974

Financial liabilities Other payables - 11,250,707 11,250,707 Amount due to subsidiary companies - 14,451,425 14,451,425 Lease liabilities - 5,457,282 5,457,282 Loans and borrowings - 6,815,226 6,815,226 - 37,974,640 37,974,640

'FWURGE*QNFKPIU$GTJCF (200401008252) 168 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. )LQDQFLDO,QVWUXPHQWV &RQW¶G

(a) Classification of financial instruments (&RQW¶G

Financial Financial assets at liabilities at amortised cost amortised cost Total RM RM RM

Group 2020 Financial assets Trade receivables 2,356,066 - 2,356,066 Other receivables 9,862,123 - 9,862,123 Amount due from associates 5,526,578 - 5,526,578 Fixed deposit with licensed banks 12,396 - 12,396 Cash and bank balances 564,354 - 564,354 18,321,517 - 18,321,517

Financial liabilities Trade payables - 2,029,618 2,029,618 Other payables - 19,590,184 19,590,184 Finance lease liabilities - 10,635,558 10,635,558 Loans and borrowings - 35,460,193 35,460,193 - 67,715,553 67,715,553

'FWURGE*QNFKPIU$GTJCF (200401008252) 169 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial Instruments (CoQW¶G

(a) Classification of financial instruments &RQW¶G

Financial Financial assets at liabilities at amortised cost amortised cost Total RM RM RM Company 2020 Financial assets Other receivables 3,706,780 - 3,706,780 Amount due from subsidiary companies 2,688,696 - 2,688,696 Amount due from associates 5,516,490 - 5,516,490 Cash and bank balances 48,496 - 48,496 11,960,462 - 11,960,462

Financial liabilities Other payables - 12,939,520 12,939,520 Amount due to subsidiary companies - 23,993,541 23,993,541 Lease liabilities - 238,645 238,645 Loans and borrowings - 7,263,733 7,263,733 - 44,435,439 44,435,439

'FWURGE*QNFKPIU$GTJCF (200401008252) 170 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial ,QVWUXPHQWV &RQW¶G

(b) Financial risk management objective and policies

7KH*URXS¶s and WKH&RPSDQ\¶VILQDQFLDOULVNPDQDJHPHQt policy is to ensure that adequate financial resources are available for the development of the GroXS¶VDQd RIWKH&RPSDQ\¶VRSerations whilst managing its credit, liquidity, foreign currency, interest rate and market price risks. The Group and the Company operate within clearly defined guidelines that are approved by the Board DQGWKH*URXS¶VDQGthe CRPSDQ\¶s policy is not to engage in speculative transactions.

The following sections provide details regarding the GURXS¶VDQGWKH&RPSDQ\¶V exposure to the abovementioned financial risks and the objectives, policies and processes for the management of these risks.

(i) Credit risk

Credit risk is the risk of a financial loss to the Group and to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obliJDWLRQV 7KH *URXS¶V H[SRVXUe to credit risk arises principally from its receivables from customers and deposits with banks and financial institutions. TKH &RPSDQ\¶V H[SRVXUH WR credit risk arises principally from loans and advances to subsidiaries and financial guarantees given to banks for credit facilities granted to subsidiaries. There are no significant changes as compared to prior periods.

The Group and the Company have adopted a policy of only dealing with creditworthy counterparties. Management has a credit policy in place to control credit risk by dealing with creditworthy counterparties and deposit with banks and financial institutions with good credit rating. The exposure to credit risk is monitored on an ongoing basis and action will be taken for long outstanding debts.

At each reporting date, the Group and the Company assess whether any if the receivables are credit impaired.

The gross carrying amounts of credit impaired trade receivables and contract assets are written off (either partial or full) when there is no realistic prospect of recovery. This is generally the case when the Group or the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. Nevertheless, trade receivables that are written off could still be subject to enforcement activities.

'FWURGE*QNFKPIU$GTJCF (200401008252) 171 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial Instruments (ConW¶G

(b) Financial risk management objective and policies &RQW¶G

(i) CrediWULVN &RQW¶G

The carrying amounts of the financial assets recorded on the statements of financial position at the end of the financial year represent tKH*URXS¶Vand the ComSDQ\¶s maximum exposure to credit risk except for financial guarantees provided to banks for banking facilities granted to certain subsidiary companies. 7KH&RPSDQ\¶VPD[LPXm exposure in this respect is RM34,483,666 (29.2.2020: RM43,529,947), representing the outstanding banking facilities of the subsidiaries as at the end of the reporting period. There was no indication that any subsidiary would default on repayment as at the end of the reporting period. There are no significant changes as compared to previous financial year.

The Group and the Company have no significant concentration of credit risk as its exposure spread over a large number of customers.

(ii) Liquidity risk

Liquidity risk refers to the risk that the Group or the Company will encounter difficulty in meeting its financial obligatiRQV DV WKH\IDOOGXH7KH*URXS¶V and thH &RPSDQ\¶V H[SRsure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities.

7KH*URXS¶VDQGWKH&RPSDny¶VIXQGLQJrequirements and liquidity risk are managed with the objective of meeting business obligations on a timely basis. The Group and the Company finance its liquidity through internally generated cash flows and minimises liquidity risk by keeping committed credit lines available.

'FWURGE*QNFKPIU$GTJCF (200401008252) 172 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial Instruments (CRQW¶G

(b) Financial risk management objective and policies (ConW¶G

(ii) Liquidity risk &RQW¶G

The following table analyses the remaining contractual maturity for financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group and the Company can be required to pay.

On demand Total Total or within contractual carrying 1 year 1 to 2 years 2 to 5 years After 5 years cash flows amount RM RM RM RM RM RM

Group 2021 Non-derivative financial liabilities Trade payables 1,333,727 - - - 1,333,727 1,333,727 Other payables 20,725,750 - - - 20,725,750 20,725,750 Lease liabilities 2,159,658 9,912,555 74,920 - 12,147,133 10,647,149 Loans and borrowings 13,311,680 2,812,772 3,126,912 7,600,839 26,852,203 26,642,730 37,530,815 12,725,327 3,201,832 7,600,839 61,058,813 59,349,356

'FWURGE*QNFKPIU$GTJCF (200401008252) 173 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial Instruments &RQW¶G

(b) Financial risk management objective and policies (CRQW¶G

(ii) Liquidity risk &RQW¶G

On demand Total Total or within contractual carrying 1 year 1 to 2 years 2 to 5 years After 5 years cash flows amount RM RM RM RM RM RM

Group 2020 Non-derivative financial liabilities Trade payables 2,029,618 - - - 2,029,618 2,029,618 Other payables 19,590,184 - - - 19,590,184 19,590,184 Lease liabilities 1,796,436 10,637,692 - - 12,434,128 10,635,558 Loans and borrowings 21,799,112 3,747,109 1,809,425 8,544,981 35,900,627 35,460,193 45,215,350 14,384,801 1,809,425 8,544,981 69,954,557 67,715,553

'FWURGE*QNFKPIU$GTJCF (200401008252) 174 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. FinanciaO,QVWUXPHQWV &RQW¶G)

(b) Financial risk management objective and policies (CoQW¶G)

(ii) Liquidity risk (CRQW¶G)

On demand Total Total or within contractual carrying 1 year 1 to 2 years 2 to 5 years cash flows amount RM RM RM RM RM

Company 2021 Non-derivative financial liabilities Other payables 11,250,707 - - 11,250,707 11,250,707 Amount due to subsidiary companies 14,451,425 - - 14,451,425 14,451,425 Lease liabilities 1,440,000 1,440,000 3,120,000 6,000,000 5,457,282 Loans and borrowings 6,815,226 - - 6,815,226 6,815,226 Financial guarantees* 34,483,666 - - 34,483,666 - 68,441,024 1,440,000 3,120,000 73,001,024 37,974,640

'FWURGE*QNFKPIU$GTJCF (200401008252) 175 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial InstrumentV &RQW¶G

(b) Financial risk management objective and policies &RQW¶G

(ii) Liquidity risk &RQW¶G)

On demand Total Total or within contractual carrying 1 year 1 to 2 years 2 to 5 years cash flows amount RM RM RM RM RM

Company 2020 Non-derivative financial liabilities Other payables 12,939,520 - - 12,939,520 12,939,520 Amount due to subsidiary companies 23,993,541 - - 23,993,541 23,993,541 Lease liabilities 240,000 - - 240,000 238,645 Loans and borrowings 7,263,733 - - 7,263,733 7,263,733 Financial guarantees* 43,529,947 - - 43,529,947 - 87,966,741 - - 87,966,741 44,435,439

* Based on the maximum amount that can be called for under the financial guarantee contract.

'FWURGE*QNFKPIU$GTJCF (200401008252) 176 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial Instruments (&RQW¶G

(b) Financial risk management objective and policies &RQW¶G

(iii) Market risk

(a) Foreign currency risk

The Group and the Company exposed to foreign currency risk on transactions that are denominated in currencies other than the respective functional currencies of group entities. The currencies giving rise to this risk are primarily Singapore Dollar (SGD), United States Dollar (USD), Indonesia Rupiah (IDR), Hong Kong Dollar (HKD), Thailand Baht (THB) and Philippine Peso (PESO).

The carrying amounts of WKH*URXS¶V and of the Company¶V foreign currency denominated financial assets and financial liabilities at the end of the reporting period are as follows:

SGD USD IDR HKD THB Total RM RM RM RM RM RM

Group 2021 Financial assets Trade receivables 3,234 - - - 536,778 540,012 Other receivables 172,776 3,175,116 - - 154,416 3,502,308 Amount due from associates - 65,429 - - - 65,429 Cash and bank balances 44,059 707,068 - 2,403 21,199 774,729 220,069 3,947,613 - 2,403 712,393 4,882,478

'FWURGE*QNFKPIU$GTJCF (200401008252) 177 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial InstrumeQWV &RQW¶G

(b) Financial risk management objective and policies &RQW¶G

(iii) Market risk &RQW¶G

(a) Foreign currency risk &RQW¶G)

The carrying amounts of the GrouS¶V and of WKH&RPSDQ\¶VIRUeign currency denominated financial assets and financial liabilities at the end of the reporting period are as follows (&RQW¶d)

SGD USD IDR HKD THB Total RM RM RM RM RM RM

Group 2021 (Cont'd) Financial liabilities Trade payables 7,723 204,238 9,405 - - 221,366 Other payables 156,496 10,225,343 - 38,251 1,512,948 11,933,038 Short term revolving credit - 6,382,664 - - - 6,382,664 Term loans - 3,369,023 - - - 3,369,023 164,219 20,181,268 9,405 38,251 1,512,948 21,906,091

'FWURGE*QNFKPIU$GTJCF (200401008252) 178 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial InstrumHQWV &RQW¶G

(b) Financial risk management objective and policies (CoQW¶G

(iii) Market risk &RQW¶G

(a) Foreign currency risk &RQW¶G

The carrying amounWVRIWKH*URXS¶s and of the CompaQ\¶VIRUHLJQFXUUHQF\GHQRPLnated financial assets and financial liabilities at the end of the reporting period are as follows &RQW¶G)

SGD USD IDR HKD THB Total RM RM RM RM RM RM

Group 2020 Financial assets Trade receivables 4,493 1,189 - - 513,347 519,029 Other receivables 620,503 3,217,189 - - 3,847 3,841,539 Amount due from an associate - 105,017 - - - 105,017 Cash and bank balances 28,498 14,233 - 54 18,120 60,905 653,494 3,337,628 - 54 535,314 4,526,490

'FWURGE*QNFKPIU$GTJCF (200401008252) 179 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. FinDQFLDO,QVWUXPHQWV &RQW¶G)

(b) Financial risk management objective and policies (CRQW¶G)

(iii) Market risk &RQW¶d)

(a) Foreign currency risk &RQW¶G

The carrying amouQWVRIWKH*URXS¶V and of the Company¶V foreign currency denominated financial assets and financial liabilities at the end of the reporting period are as follows &RQW¶G

SGD USD IDR HKD THB Total RM RM RM RM RM RM

Group 2020 (Cont'd) Financial liabilities Trade payables 11,720 202,498 9,325 - - 223,543 Other payables 993,724 10,225,343 73,359 1,405,390 12,697,816 Short term revolving credit - 6,328,666 - - - 6,328,666 Term loans - 12,200,918 - - - 12,200,918 1,005,444 28,957,425 9,325 73,359 1,405,390 31,450,943

'FWURGE*QNFKPIU$GTJCF (200401008252) 180 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial Instruments &RQW¶G

(b) Financial risk management objective and policies &RQW¶G

(iii) Market risk (CoQW¶G

(a) Foreign currency risk &RQW¶G

SGD USD IDR HKD THB Total RM RM RM RM RM RM

Company 2021 Financial assets Other receivables - 3,175,116 - - - 3,175,116 Cash and bank balances - 637,324 - - - 637,324 - 3,812,440 - - - 3,812,440

Financial liabilities Other payables - 10,225,343 - - - 10,225,343 Amount due to subsidiary - companies 11,869,461 - - 879,641 - 12,749,102 Short term revolving credit - 6,382,664 - - - 6,382,664 11,869,461 16,608,007 - 879,641 - 29,357,109

'FWURGE*QNFKPIU$GTJCF (200401008252) 181 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial InstrumenWV &RQW¶G

(b) Financial risk management objective and policies &RQW¶G

(iii) Market risk (ConW¶G

(a) Foreign currency risk (ConW¶G

SGD USD IDR HKD THB Total RM RM RM RM RM RM

Company 2020 Financial assets Other receivables - 3,175,116 - - - 3,175,116 - 3,175,116 - - - 3,175,116

Financial liabilities Other payables - 10,225,343 - - - 10,225,343 Amount due to subsidiary companies 11,965,840 - - 2,123,106 - 14,088,946 Short term revolving credit - 6,328,666 - - - 6,328,666 11,965,840 16,554,009 - 2,123,106 - 30,642,955

'FWURGE*QNFKPIU$GTJCF (200401008252) 182 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial InstrumentV &RQW¶G

(b) Financial risk management objective and policies &RQW¶G

(iii) Market risk &RQW¶G

(a) Foreign currency risk &RQW¶G

Foreign currency sensitivity analysis

Foreign currency risk arises from group entities which have a RM functional currency. The exposure to currency risk of group entities which do not have a RM functional currency is not material and hence, sensitivity analysis is not presented. The following table demonstrates the sensitivity of the GrRXS¶s and of WKH&RPSDQ\¶VORVVbefore tax to a reasonably possible change in the SGD, USD, IDR, HKD, and THB exchange rates against RM, with all other variables held constant.

A 10% (29.2.2020: 10%) weakening the RM against the above currencies at the end of the reporting period would have equal but opposite effect on the currencies to the amounts shown above, on the basis that all other variables remain constant.

(b) Interest rate risk

7KH *URXS¶V and the ComSDQ\¶V IL[HG UDte deposits placed with licensed banks and borrowings are exposed to a risk of change in their fair value due to changes in interest UDWHV 7KH *URXS¶V DQd the &RPSDQ\¶V variable rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates.

The Group and the Company manage the interest rate risk of its deposits with licensed financial institutions by placing them at the most competitive interest rates obtainable, which yield better returns than cash at bank and maintaining a prudent mix of short and long-term deposits.

The Group and the Company manage its interest rate risk exposure from interest bearing borrowings by obtaining financing with the most favourable interest rates in the market. The Group and the Company constantly monitor its interest rate risk by reviewing its debts portfolio to ensure favourable rates are obtained. The Group and the Company do not utilise interest swap contracts or other derivative instruments for trading or speculative purposes.

'FWURGE*QNFKPIU$GTJCF (200401008252) 183 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial Instruments (&RQW¶G

(b) Financial risk management objective and policies &RQW¶G

(iii) Market risk &RQW¶d)

(b) Interest rate risN &RQW¶G

The interest rate profile of the Group¶V DQd of WKH &RPSDQ\¶V significant interest-bearing financial instruments, based on carrying amounts as at the end of the reporting period was:

2021 2020 RM RM

Group Fixed rate instruments Financial assets 2,013,167 12,396 Financial liabilities 10,647,149 10,635,558 12,660,316 10,647,954

Floating rate instruments Financial liabilities 26,642,730 35,460,193

Company Floating rate instruments Financial liabilities 6,815,226 7,263,733

Fair value sensitivity analysis for fixed rate instruments

The Group and the Company do not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a change in interest rates at the end of the reporting period would not affect profit or loss.

'FWURGE*QNFKPIU$GTJCF (200401008252) 184 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. FinanciaO,QVWUXPHQWV &RQW¶G)

(b) Financial risk management objective and policies (CoQW¶G

(iii) Market risk (Cont¶G

(b) InterHVWUDWHULVN &RQW¶G

Interest rate risk sensitivity analysis

Cash flow sensitivity analysis for floating rate instruments

A change in 1% interest rate at the end of the reporting period would have increased/(decreased WKH*URXS¶DQd the CompDQ\¶s loss before tax by RM266,427 and RM68,152 (29.2.2020: RM354,602 and RM72,637) respectively, arising mainly as a result of lower/higher interest expense on floating rate loans and borrowings. This analysis assumes that all other variables remain constant. The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment.

(c) Fair value of financial instruments

The carrying amounts of short term receivables and payables, cash and cash equivalents and short term borrowings approximate their fair value due to the relatively short term nature of these financial instruments and insignificant impact of discounting.

It was not practicable to estimate the fair value of investment in unquoted equity due to the lack of comparable quoted prices in an active market and the fair value cannot be reliably measured.

'FWURGE*QNFKPIU$GTJCF (200401008252) 185 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. Financial Instruments &RQW¶G)

(c) Fair value of financial instruments

The table below analyses financial instruments carried at fair value and those not carried at fair value for which fair value is disclosed, together with their fair values and carrying amounts shown in the statements of financial position.

Fair value of financial instrument Fair value of financial instruments Total carried at fair value not carried ar fair value fair Carrying Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 value amount RM RM RM RM RM RM RM RM Group 2021 Financing liabilities Lease liabilities - - - - 9,987,475 - 9,987,475 8,830,876 Term loans - - - - 13,540,523 - 13,540,523 13,445,308 Contingent liability - - - - - @ - 22,841,145

2020 Financing liabilities Lease liabilities - - - - 10,637,692 - 10,637,692 9,187,592 Term loans - - - - 14,101,515 - 14,101,515 14,101,515 Contingent liability - - - - - @ - 30,607,388

@ it is not practicable to estimate the fair value of contingent liability reliably due to the uncertainties of timing, cost and eventual outcome.

'FWURGE*QNFKPIU$GTJCF (200401008252) 186 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

35. FinanFLDO,QVWUXPHQWV &RQW¶G)

(c) Fair value of financial instruments (CRQW¶G

(i) Policy on transfer between levels

The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer. There were no transfers between levels during current and previous financial years.

(ii) Level 1 fair value

Level 1 fair value is derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

(iii) Level 2 fair value

Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Derivatives

The fair value of forward exchange contracts is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bond).

Non-derivative financial instruments

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the end of the reporting period.

(iv) Level 3 fair value

Level 3 fair values for the financial assets and liabilities are estimated using unobservable inputs.

'FWURGE*QNFKPIU$GTJCF (200401008252) 187 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

36. Capital Management

The Group¶s objectives when managing capital are to safeguard the *URXS¶VDELOLW\WR continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Group monitors capital using a gearing ratio. TKH*URXS¶VSROLF\LVto maintain a prudent level of gearing ratio that complies with debt covenants and regulatory requirements. The gearing ratios at end of the reporting period are as follows:

Group Company 2021 2020 2021 2020 RM RM RM RM

Total loans and borrowings 37,289,879 46,095,751 12,272,508 7,502,378 Less: Deposits, bank and cash balances (6,593,574) (576,750) (4,291,212) (48,496) Net debt 30,696,305 45,519,001 7,981,296 7,453,882

Total equity 41,055,638 31,848,617 29,790,472 11,226,662

Gearing ratio 75% 143% 27% 66%

There were no changes in thH *URXS¶V DSSURDFK WR capital management during the financial year.

'FWURGE*QNFKPIU$GTJCF (200401008252) 188 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

37. Significant Events

(a) As at the end of the financial year, the number of RCPS in issue is 34,000,000 shares and 33,000,000 converted to ordinary shares. (b) On 7 July 2020, the Company undertook a share consolidation of every 2 existing ordinary shares of the Company into 1 ordinary share. The existing number of 3,897,934,741 ordinary shares of the Company is consolidated into 1,948,967,361 consolidated shares pursuant to the Share Consolidation. Consequently, pursuant to the provisions of the Deed Pool B, the existing number of 550,906,743 Warrants B was adjusted into 275,453,358 consolidated Warrants B. The consolidated shares and consolidated Warrants B were listed and quoted with effect from 27 August 2020.

(c) On 2 December 2020, the Company and the RCPS subscriber entered into a third supplemental subscription agreement to amend, modify, substitute, vary and alter the terms, conditions and provisions of the subscription agreement dated 31 May 2019 entered into between the Company and the RCPS subscribers in relation to the issuance of RCPS. Further to the above, the Company had also proposed to undertake the following:- (i) Proposed amendments to the Constitution of the Company to facilitate the implementation of the proposed variation; and (ii) Proposed amendments to the Constitution of the Company to facilitate the implementation of the proposed granting of authority to the Board to issue and allot Eduspec Shares pursuant to Sections 75 and 76 of the Act of up to 20% of the total number of issued Shares. Accordingly, the Proposed Variation has become effective from 21 January 2021.

'FWURGE*QNFKPIU$GTJCF (200401008252) 189 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

37. Significant Events (Cont¶G) (d) Outbreak of Coronavirus PandemiF ³&ovid-1´

On 11 March 2020, the World Health Organisation declared the Coronavirus ³&RYLG-´ RXtbreak as a pandemic in recognition of its rapid spread across the globe. The emergence of Covid-19 since early 2020 has brought about uncertainties to WKH*URXS¶VDQGWKH&ompan\¶Voperating environment and has impacted WKH*URXS¶VDQGWKH&RPSDQ\¶VRSHUDtions in Malaysia and oversea and their financial position. The Group and the Company are cognizant of the challenges posed by these developing events and the potential impact on the business sector of the Group and of the Company.

The Group and the Company are unable to reasonably estimate the financial impact of Covid-19 for the financial year ended 28 February 2021 to be disclosed in the financial statements as the situation is still evolving and the uncertainty of the outcome of the current events. The Group and the Company will continuously monitor the impact of Covid-19 on its operations and its financial performance. The Group and the Company will also be taking appropriate and timely measures to minimise the impaFW RI WKH RXWEUHDN RQ WKH *URXS¶V DQd on the CompDQ\¶V operations.

'FWURGE*QNFKPIU$GTJCF (200401008252) 190 Annual Report 2021 NOTES (146*'(+0#0%+#.;'#4'0&'&('$47#4; (cont’d)

38. Subsequent Events

i. RCPS and private placement

a. Subsequent of the financial year, the number of RCPS in issue is 85,000,000 shares and converted to ordinary shares.

b. On 16 March 2021, the Company proposed to undertake a private placement of up to 564,884,100 new ordinary shares, representing up to approximately 20% of the enlarged total number of issued shares.

39. Comparative Information

The comparative figures have been restated to reflect the following effects:

In the Group and the Company¶V statements of comprehensive income for the financial year ended 29 February 2020, the Group and Company reclassified royalty income amounted to RM4,826,543 and RM5,714,163 from other income to revenue.

40. Date of Authorisation for Issue

The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the Directors on

'FWURGE*QNFKPIU$GTJCF (200401008252) 191 Annual Report 2021 NOTICE OF THE SEVENTEENTH #007#.)'0'4#./''6+0)

016+%'+5*'4'$;)+8'06*#6VJG5GXGPVGGPVJ#PPWCN)GPGTCN/GGVKPIQH'FWURGE*QNFKPIU$GTJCF őEduspecŒQTőCompany”) YKNNDGEQPFWEVGFHWNN[XKTVWCNHTQOVJG$TQCFECUV8GPWGCV6TKEQT.GCFGTUJKR7PKV.GXGN6QYGT#8GTVKECN$WUKPGUU 5WKVG#XGPWG$CPIUCT5QWVJ0Q,CNCP-GTKPEJK-WCNC.WORWTQP6JWTUFC[#WIWUVCVCOHQTVJG HQNNQYKPIRWTRQUGU

AGENDA

ORDINARY BUSINESS :  6QTGEGKXGVJG#WFKVGF(KPCPEKCN5VCVGOGPVUHQTVJGſPCPEKCN[GCTGPFGF(GDTWCT[VQIGVJGT Explanatory Note 1 YKVJVJG&KTGEVQTUŏ4GRQTVCPF#WFKVQTUŏ4GRQTVVJGTGQP  6QCRRTQXGVJGRC[OGPVQH&KTGEVQTUŏHGGUVQDGRCKFVQ0QP'ZGEWVKXG&KTGEVQTUHTQO#WIWUV Ordinary Resolution 1 WPVKNVJGEQPENWUKQPQHVJGPGZV#PPWCN)GPGTCN/GGVKPI Explanatory Note 2  6QTGGNGEV/T.KO6JKCP.QQPIYJQTGVKTGUD[TQVCVKQPRWTUWCPVVQ%NCWUGQHVJG%QORCP[ŏU Ordinary Resolution 2 %QPUVKVWVKQPCPFDGKPIGNKIKDNGQHHGTUJKOUGNHHQTTGGNGEVKQP  6QTGGNGEV/T5W-GQPI5KQPIYJQTGVKTGUD[TQVCVKQPRWTUWCPVVQ%NCWUGQHVJG%QORCP[ŏU Ordinary Resolution 3 %QPUVKVWVKQPCPFDGKPIGNKIKDNGQHHGTUJKOUGNHHQTTGGNGEVKQP  6QTGCRRQKPV/GUUTU7*;CU#WFKVQTUQHVJG%QORCP[HQTVJGGPUWKPI[GCTCPFVQCWVJQTKUGVJG Ordinary Resolution 4 &KTGEVQTUVQſZVJGKTTGOWPGTCVKQP SPECIAL BUSINESS : 6QEQPUKFGTCPFKHVJQWIJVſVVQRCUUYKVJQTYKVJQWVOQFKſECVKQPUVJGHQNNQYKPITGUQNWVKQPU  ORDINARY RESOLUTION Ordinary Resolution 5 AUTHORITY TO ISSUE SHARES PURSUANT TO SECTION 75 AND SECTION 76 OF THE Explanatory Note 3 COMPANIES ACT 2016

őTHAT UWDLGEV CNYC[U VQ VJG %QORCPKGU #EV  VJG %QPUVKVWVKQP QH VJG %QORCP[ CPF VJG CRRTQXCNUQHVJGTGNGXCPVIQXGTPOGPVCNCPFQTTGIWNCVQT[CWVJQTKVKGUKHCRRNKECDNGVJG&KTGEVQTUDG CPFCTGJGTGD[GORQYGTGFRWTUWCPVVQ5GEVKQPCPF5GEVKQPQHVJG%QORCPKGU#EVVQ KUUWGUJCTGUKPVJG%QORCP[HTQOVKOGVQVKOGCPFWRQPUWEJVGTOUCPFEQPFKVKQPUCPFHQTUWEJ RWTRQUGUCUVJG&KTGEVQTUOC[KPVJGKTCDUQNWVGFKUETGVKQPFGGOſVRTQXKFGFVJCVVJGCIITGICVG PWODGTQHUJCTGUKUUWGFRWTUWCPVVQVJKUTGUQNWVKQPFQGUPQVGZEGGFQHVJGVQVCNPWODGTQH KUUWGFUJCTGU GZENWFKPIVTGCUWT[UJCTGU QHVJG%QORCP[HQTVJGVKOGDGKPI

THAT VJG&KTGEVQTUDGCPFCTGJGTGD[GORQYGTGFVQQDVCKPCRRTQXCNHQTVJGNKUVKPICPFSWQVCVKQP QHVJGCFFKVKQPCNUJCTGUUQKUUWGFQP$WTUC/CNC[UKC5GEWTKVKGU$GTJCF

AND THAT UWEJ CWVJQTKV[ UJCNN EQOOGPEG KOOGFKCVGN[ WRQP RCUUKPI QH VJKU TGUQNWVKQP CPF EQPVKPWGVQDGKPHQTEGWPVKNVJGEQPENWUKQPQHVJGPGZV#PPWCN)GPGTCN/GGVKPIQHVJG%QORCP[Œ

 ORDINARY RESOLUTION Ordinary Resolution 6 RETENTION OF INDEPENDENT NON-EXECUTIVE DIRECTOR Explanatory Note 4

őTHATRWTUWCPVVQ2TCEVKEGQHVJG/CNC[UKCP%QFGQP%QTRQTCVG)QXGTPCPEG&CVQŏ&T/QJF #TKHH $KP #TCHH YJQ JCU UGTXGF CU +PFGRGPFGPV 0QP'ZGEWVKXG &KTGEVQT QH VJG %QORCP[ HQT C EWOWNCVKXGVGTOQHOQTGVJCPVYGNXG  [GCTUDGCPFKUJGTGD[TGVCKPGFCPFUJCNNEQPVKPWGVQCEV CU+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTQHVJG%QORCP[WPVKNVJGEQPENWUKQPQHVJGPGZV#PPWCN )GPGTCN/GGVKPIŒ ANY OTHER BUSINESS :  6QVTCPUCEVCP[QVJGTDWUKPGUUHQTYJKEJFWGPQVKEGUJCNNJCXGDGGPIKXGPKPCEEQTFCPEGYKVJVJG %QORCP[ŏU%QPUVKVWVKQPCPFVJG%QORCPKGU#EV

$;14&'41(6*'$1#4&

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-WCNC.WORWT &CVGF,WN[

'FWURGE*QNFKPIU$GTJCF (200401008252) 192 Annual Report 2021 NOTICE OF THE SEVENTEENTH #007#.)'0'4#./''6+0) (cont’d)

NOTES :

 #OGODGTQHVJG%QORCP[GPVKVNGFVQRCTVKEKRCVGCPFXQVGCVVJGOGGVKPIOC[CRRQKPVQPGQTOQTGRTQZKGU QTDGKPIC EQTRQTCVGOGODGTCEQTRQTCVGTGRTGUGPVCVKXG VQRCTVKEKRCVGCPFXQVGKPJKUJGTUVGCF#RTQZ[OC[DWVPGGFPQVDGCOGODGT QHVJG%QORCP[

 9JGTGCOGODGTCRRQKPVUOQTGVJCPQPG  RTQZ[VJGCRRQKPVOGPVUJCNNDGKPXCNKFWPNGUUJGUJGURGEKſGUVJGRTQRQTVKQPU QHJKUJGTUJCTGJQNFKPIUVQDGTGRTGUGPVGFD[GCEJRTQZ[

 6JGKPUVTWOGPVCRRQKPVKPICRTQZ[KPVJGECUGQHCPKPFKXKFWCNUJCNNDGUKIPGFD[VJGCRRQKPVGTQTJKUJGTCVVQTPG[QTKPVJG ECUGQHCEQTRQTCVKQPGZGEWVGFWPFGTKVUEQOOQPUGCNQTUKIPGFQPDGJCNHQHVJGEQTRQTCVKQPD[KVUCVVQTPG[QTD[CPQHſEGT FWN[CWVJQTKUGF

 9JGTGCOGODGTQHVJG%QORCP[KUCPGZGORVCWVJQTKUGFPQOKPGGYJKEJJQNFUQTFKPCT[UJCTGUKPVJG%QORCP[HQTOWNVKRNG DGPGſEKCNQYPGTUKPQPGUGEWTKVKGUCEEQWPV őQOPKDWUCEEQWPVŒ CUFGſPGFWPFGTVJG5GEWTKVKGU+PFWUVT[ %GPVTCN&GRQUKVQTKGU  #EVVJGTGKUPQNKOKVVQVJGPWODGTQHRTQZKGUYJKEJVJGGZGORVCWVJQTKUGFPQOKPGGOC[CRRQKPVKPTGURGEVQHGCEJ QOPKDWUCEEQWPVKVJQNFU

 6JGKPUVTWOGPVCRRQKPVKPICRTQZ[CPFVJGRQYGTQHCVVQTPG[QTQVJGTCWVJQTKV[KHCP[WPFGTYJKEJKVKUUKIPGFQTGZGEWVGF OWUVDGFGRQUKVGFCVVJGQHſEGQHVJG5JCTG4GIKUVTCT6TKEQT+PXGUVQT+UUWKPI*QWUG5GTXKEGU5FP$JFCV7PKV.GXGN 6QYGT#8GTVKECN$WUKPGUU5WKVG#XGPWG$CPIUCT5QWVJ0Q,CNCP-GTKPEJK-WCNC.WORWTQTCNVGTPCVKXGN[KVU %WUVQOGT5GTXKEG%GPVTGCV7PKV))TQWPF(NQQT8GTVKECN2QFKWO#XGPWG$CPIUCT5QWVJ0Q,CNCP-GTKPEJK -WCNC.WORWTPQVNGUUVJCPJQWTUDGHQTGVJGVKOGCRRQKPVGFHQTJQNFKPIVJGOGGVKPIQTCP[CFLQWTPOGPVVJGTGQH

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EXPLANATORY NOTES :

1. AUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2021

 6JKUKVGOQHVJG#IGPFCKUOGCPVHQTFKUEWUUKQPQPN[6JGRTQXKUKQPQH5GEVKQP  QHVJG%QORCPKGU#EVTGSWKTGU VJCVVJGCWFKVGFſPCPEKCNUVCVGOGPVUCPFVJG4GRQTVUQHVJG&KTGEVQTUCPF#WFKVQTUVJGTGQPDGNCKFDGHQTGVJG%QORCP[CVKVU #PPWCN)GPGTCN/GGVKPI#UUWEJVJKUKVGOQHVJG#IGPFCKUPQVCDWUKPGUUYJKEJTGSWKTGUCTGUQNWVKQPVQDGRWVVQXQVGD[ UJCTGJQNFGTU

2. DIRECTORS’ REMUNERATION

 5GEVKQP  QHVJG%QORCPKGU#EVRTQXKFGUCOQPIUVQVJGTUVJCVVJGHGGUQHVJG&KTGEVQTUCPFCP[DGPGſVURC[CDNG VQVJG&KTGEVQTUQHCNKUVGFEQORCP[CPFKVUUWDUKFKCTKGUUJCNNDGCRRTQXGFCVCIGPGTCNOGGVKPI

 +PVJKUTGURGEVVJG$QCTFYKUJGUVQUGGMUJCTGJQNFGTUŏCRRTQXCNKPTGURGEVQHVJGRTQRQUGFOrdinary Resolution 1 for payment QH&KTGEVQTUŏHGGUQHWRVQ4/RGTOQPVJRGT&KTGEVQTVQDGRCKFVQ0QP'ZGEWVKXG&KTGEVQTUHTQO#WIWUVWPVKN VJGEQPENWUKQPQHVJGPGZV#PPWCN)GPGTCN/GGVKPIQHVJG%QORCP[

 AUTHORITY TO ISSUE SHARES PURSUANT TO SECTION 75 AND SECTION 76 OF THE COMPANIES ACT 2016

 6JGRTQRQUGFOrdinary Resolution 5KUCTGPGYCNQHVJGRTGXKQWU[GCTŏUIGPGTCNOCPFCVGCPFKHRCUUGFYKNNRTQXKFGƀGZKDKNKV[ HQTVJG%QORCP[CPFGORQYGTVJG&KTGEVQTUVQKUUWGPGYUJCTGUWRVQCPCOQWPVPQVGZEGGFKPIQHVJGVQVCNPWODGTQH KUUWGFUJCTGU GZENWFKPIVTGCUWT[UJCTGU QHVJG%QORCP[HQTCP[RQUUKDNGHWPFTCKUKPICEVKXKVKGUKPENWFKPIDWVPQVNKOKVGFVQ RNCEGOGPVQHUJCTGUHQTRWTRQUGQHHWPFKPIKPXGUVOGPVURTQLGEVUYQTMKPIECRKVCNCPFQTCESWKUKVKQPCUFGGOGFPGEGUUCT[ 6JKU YQWNF GNKOKPCVG CP[ FGNC[ CTKUKPI HTQO CPF EQUV KPXQNXGF KP EQPXGPKPI C IGPGTCN OGGVKPI VQ QDVCKP UJCTGJQNFGTUŏ CRRTQXCNHQTUWEJKUUWCPEGQHUJCTGU6JKUCWVJQTKV[WPNGUUTGXQMGFQTXCTKGFD[VJG%QORCP[CVCIGPGTCNOGGVKPIYKNN GZRKTGCVVJGEQPENWUKQPQHVJGPGZV#)/

'FWURGE*QNFKPIU$GTJCF (200401008252) 193 Annual Report 2021 NOTICE OF THE SEVENTEENTH #007#.)'0'4#./''6+0) (cont’d)

 AUTHORITY TO ISSUE SHARES PURSUANT TO SECTION 75 AND SECTION 76 OF THE COMPANIES ACT 2016 (cont’d)

 *CXKPIEQPUKFGTGFVJGEWTTGPVGEQPQOKEGPXKTQPOGPVCTKUKPIHTQOVJGINQDCN%QXKFRCPFGOKECPFVJGEWTTGPVCPFHWVWTG ſPCPEKCNPGGFUQHVJG)TQWRVJG$QCTFYQWNFNKMGVQRTQEWTGCRRTQXCNHQTVJGIGPGTCNOCPFCVGRWTUWCPVVQ5GEVKQP   QHVJG%QORCPKGU#EVHTQOKVUUJCTGJQNFGTUCVVJGVJ#)/QHVJG%QORCP[+PVJGHCEGQHVJGWPRTGEGFGPVGF EJCNNGPIGUHWTVJGTƀGZKDKNKV[VQTCKUGHWPFUGZRGFKVKQWUN[QVJGTVJCPKPEWTTKPICFFKVKQPCNKPVGTGUVEQUVUCUEQORCTGFVQDCPM DQTTQYKPIUYQWNFCNNQYVJG%QORCP[VQRTGUGTXGKVUECUJƀQYCPFCEJKGXGCOQTGQRVKOCNECRKVCNUVTWEVWTG$WTUC/CNC[UKC 5GEWTKVKGU$GTJCFJCUCNUQCNNQYGFVJCVVJGIGPGTCNOCPFCVGOC[DGWVKNKUGFD[VJG%QORCP[VQKUUWGPGYUGEWTKVKGU WPVKN&GEGODGTCPFVJGTGCHVGTVJGIGPGTCNOCPFCVGYKNNDGTGKPUVCVGF6JG$QCTFKUQHVJGQRKPKQPVJCVVJG IGPGTCNOCPFCVGKUKPVJGDGUVKPVGTGUVQHVJG%QORCP[CPFKVUUJCTGJQNFGTU

 #UCVVJGFCVGQHPQVKEGQHOGGVKPIPQUJCTGUJCXGDGGPKUUWGFRWTUWCPVVQVJGIGPGTCNOCPFCVGITCPVGFCVVJG'ZVTCQTFKPCT[ )GPGTCN/GGVKPIJGNFQP,CPWCT[

 RETENTION OF INDEPENDENT NON-EXECUTIVE DIRECTOR

 6JGRTQRQUGFOrdinary Resolution 6KUVQUGGMUJCTGJQNFGTUŏCRRTQXCNVQTGVCKP&CVQŏ&T/QJF#TKHH$KP#TCHH ő&CVQŏ#TKHHŒ  CU+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTQHVJG%QORCP[&CVQŏ#TKHHJCUUGTXGFCU+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTQH VJG%QORCP[HQTCEWOWNCVKXGVGTOQHOQTGVJCPVYGNXG  [GCTUUKPEGJKUCRRQKPVOGPVCU&KTGEVQTQHVJG%QORCP[QP &GEGODGT&CVQŏ#TKHHJCUGZRTGUUGFJKUKPVGPVKQPVQUGGMTGCRRQKPVOGPVCU+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTQHVJG %QORCP[2WTUWCPVVQ2TCEVKEGQHVJG/CNC[UKCP%QFGQP%QTRQTCVG)QXGTPCPEGVJG$QCTFUJQWNFRTQXKFGLWUVKſECVKQP CPFUGGMCPPWCNUJCTGJQNFGTUŏCRRTQXCNVJTQWIJCVYQVKGTXQVKPIRTQEGUUKHVJG$QCTFEQPVKPWGUVQTGVCKP+PFGRGPFGPV0QP 'ZGEWVKXG&KTGEVQTCHVGT[GCTU

 6JG0QOKPCVKQP%QOOKVVGGJCFCUUGUUGFVJGKPFGRGPFGPEGQH&CVQŏ#TKHHCPFTGEQOOGPFGFVQVJG$QCTFVJCV&CVQŏ#TKHHDG TGVCKPGFCPFUJCNNEQPVKPWGVQCEVCU+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTQHVJG%QORCP[DCUGFQPJKUCDKNKV[VQOCKPVCKP KPFGRGPFGPVLWFIGOGPVCPFVQGZRTGUUWPDKCUGFXKGYUYKVJQWVCP[KPƀWGPEG&CVQŏ#TKHHKUHCOKNKCTYKVJVJG)TQWRŏUDWUKPGUU QRGTCVKQPUCPFJCUFGXQVGFVKOGCPFEQOOKVOGPVCPFJCUGZGTEKUGFFWGECTGKPFKUEJCTIKPIJKUFWVKGUCPFTGURQPUKDKNKVKGUCU +PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQT&CVQŏ#TKHHJCUHWNſNNGFVJGETKVGTKCWPFGTVJGFGſPKVKQPQH+PFGRGPFGPV0QP'ZGEWVKXG &KTGEVQTCUFGſPGFKPVJG.KUVKPI4GSWKTGOGPVUQH$WTUC/CNC[UKC5GEWTKVKGU$GTJCF

'FWURGE*QNFKPIU$GTJCF (200401008252) 194 Annual Report 2021 STATEMENT ACCOMPANYING 016+%'1(6*'5+:6''06*#007#.)'0'4#./''6+0)

6JG&KTGEVQTUUGGMKPITGGNGEVKQPRWTUWCPVVQ%NCWUGQHVJG%QORCP[ŏU%QPUVKVWVKQPCVVJG5GXGPVGGPVJ#PPWCN)GPGTCN/GGVKPI QHVJG%QORCP[CTGCUHQNNQYU

  /T.KO6JKCP.QQPI   /T5W-GQPI5KQPI

6JGRTQſNGUQHVJG&KTGEVQTUYJQCTGUGGMKPIHQTTGGNGEVKQPCVVJG5GXGPVGGPVJ#PPWCN)GPGTCN/GGVKPIQHVJG%QORCP[CTGUGV QWVKPő&KTGEVQTŏU2TQſNGUŒUGEVKQPQPRCIGUCPFQHVJG%QORCP[ŏU#PPWCN4GRQTV

6JGFGVCKNUQHCP[KPVGTGUVKPUGEWTKVKGUJGNFD[VJGUCKF&KTGEVQTUCTGUGVQWVKPő&KTGEVQTUŏ4GRQTVŒUGEVKQPQPRCIGUVQQHVJG %QORCP[ŏU#PPWCN4GRQTV

6JG%QORCP[YKNNUGGMUJCTGJQNFGTUŏCRRTQXCNQPVJGIGPGTCNOCPFCVGHQTKUUWGQHUGEWTKVKGUKPCEEQTFCPEGYKVJ4WNG  QH VJG#%'/CTMGV.KUVKPI4GSWKTGOGPVUQH$WTUC/CNC[UKC5GEWTKVKGU$GTJCF2NGCUGTGHGTVQVJGRTQRQUGF1TFKPCT[4GUQNWVKQPCU UVCVGFKPVJG0QVKEGQH5GXGPVGGPVJ#PPWCN)GPGTCN/GGVKPIQHVJG%QORCP[HQTVJGFGVCKNU

'FWURGE*QNFKPIU$GTJCF (200401008252) 195 Annual Report 2021 ANALYSIS OF SHAREHOLDINGS #5#6,70'

6QVCN0WODGTQH+UUWGF5JCTGU   %NCUUQH5JCTGU  1TFKPCT[5JCTGU 8QVKPI4KIJVU  1PG  XQVGRGTQTFKPCT[UJCTG

ANALYSIS BY SIZE OF SHAREHOLDINGS AS AT 1 JUNE 2021 Size of Holdings No of % No of % Shareholders Shares Held

.GUUVJCP 187    Ō 385              VQNGUUVJCPQHKUUWGFUJCTGU     CPFCDQXGQHKUUWGFUJCTGU 0  0  Total    

DIRECTORS’ SHAREHOLDINGS AS AT 1 JUNE 2021 DIRECT INDIRECT Name No of Shares % No of Shares % .KO'GP*QPI    1  &CVQŏ&T/QJF#TKHH$KP#TCHH    2  2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC     .KO6JKCP.QQPI   -  5W-GQPI5KQPI  %JCPI.KJ-CPI  &CVQŏ.GG%JKP%JQPI  Notes : *1 ĞĞŵĞĚŝŶƚĞƌĞƐƚĞĚďLJǀŝƌƚƵĞŽĨŚŝƐƐŚĂƌĞŚŽůĚŝŶŐƐŝŶsŝĐƚŽƌLJ^ŽůƵƟŽŶƐ;DͿ^ĚŶŚĚĂŶĚsŝĐƚŽƌLJ^ŽůƵƟŽŶƐ,ŽůĚŝŶŐƐ^ĚŶŚĚĂƐƉĞƌ^ĞĐƟŽŶϴŽĨƚŚĞ ŽŵƉĂŶŝĞƐĐƚϮϬϭϲ͘ ΎϮ ĞĞŵĞĚŝŶƚĞƌĞƐƚĞĚďLJǀŝƌƚƵĞŽĨŚŝƐƐŽŶ͕/ƐŵĂĞůůŝĂƐƌŝīŝŶDŽŚĚƌŝī͛ƐƐŚĂƌĞŚŽůĚŝŶŐƐŝŶĚƵƐƉĞĐ,ŽůĚŝŶŐƐĞƌŚĂĚ

SUBSTANTIAL SHAREHOLDERS AS AT 1 JUNE 2021

As at 1 June 2021, none of the shareholders of the Company is holding 5% and above of the issued shares of the Company.

'FWURGE*QNFKPIU$GTJCF (200401008252) 196 Annual Report 2021 ANALYSIS OF SHAREHOLDINGS #5#6,70' (cont’d)

LIST OF TOP 30 SHAREHOLDERS AS AT 1 JUNE 2021

No. Name No. of Shares Held %  0). ;2*#7    0)-+/5#+    #7610#+4'5&0$*&    %+/5'%01/+0''5 6'/2#6#0 5&0$*&   %+/$(14#0&4'96#0,7057#0 2$  27$.+%01/+0''5 6'/2#6#0 5&0$*&   2.'&)'&5'%74+6+'5#%%1706(14#0$4'5174%'55&0$*& '52)55#  0)*1'-7#0    ,#/'5-*10)21*9#*    -'0#0)#01/+0''5 6'/2#6#0 5&0$*&   2.'&)'&5'%74+6+'5#%%1706(14%#5#8+%614;5&0$*&  410#.&51**#+*7#6    8+%614;51.76+105*1.&+0)55&0$*&    6#01/+0''5 6'/2#6#0 5&0$*&   2.'&)'&5'%74+6+'5#%%1706(14.+/51105'10)  /#01/+0'' 6'/2#6#0 5&0$*&   2.'&)'&5'%74+6+'5#%%1706(148+%614;51.76+105 / 5&0$*&  #/5'%01/+0''5 #5+0) 5&0$*&   2.'&)'&5'%74+6+'5#%%1706(14#&8#0%'12214670+6+'5(70&  8#4+0&'4,+65+0)*#./'*#45+0)*    5'19)+/$'0)    %)5%+/$01/+0''5 6'/2#6#0 5&0$*&   2.'&)'&5'%74+6+'5#%%1706(14,#/'5-*10)21*9#* 51.#4+5%.  .+/-1-%*7#0"$'40#4&.+/    .+#0)6+#0-+#6    -'0#0)#01/+0''5 6'/2#6#0 5&0$*&   2.'&)'&5'%74+6+'5#%%1706(14.+/51105'10)  #((+0*9#0)01/+0''5 6'/2#6#0 5&0$*&   2.'&)'&5'%74+6+'5#%%1706(146#06+'05#0) 6#0%  %*'#*59''-10)    %*+#%*'%*70)    ;'1-'0),110    .;'.1+-'0)    %*1.+0*5+7*7+    #..+#0%')417201/+0''5 6'/2#6#0 5&0$*&   2.'&)'&5'%74+6+'5#%%1706(14%*1151106'%-   %)5%+/$01/+0''5 6'/2#6#0 5&0$*&   2.'&)'&5'%74+6+'5#%%1706(140))'1-9#* $$4-.#0)%.  -'0#0)#01/+0''5 6'/2#6#0 5&0$*&   2.'&)'&5'%74+6+'5#%%1706(14-1*$11021*   6'*51*;10)    ;#2;1-'%*70  

TOTAL  

'FWURGE*QNFKPIU$GTJCF (200401008252) 197 Annual Report 2021 ANALYSIS OF WARRANTHOLDINGS #5#6,70'

ANALYSIS BY SIZE OF WARRANTHOLDINGS AS AT 1 JUNE 2021 Size of Warrantholdings No of % No of % Warrantholders Warrants Held

.GUUVJCP 207    VQ 347    VQ     VQ     VQNGUUVJCPQHKUUWGFUJCTGU 333    CPFCDQXGQHKUUWGFUJCTGU 1    Total    

DIRECTORS’ WARRANTHOLDINGS AS AT 1 JUNE 2021 DIRECT INDIRECT Name No of Warrants % No of Warrants % .KO'GP*QPI    1  &CVQŏ&T/QJF#TKHH$KP#TCHH    2  2TQH&CVQŏ4CLC/WPKT5JCJ$KP4CLC/WUVCRJC     .KO6JKCP.QQPI   -  5W-GQPI5KQPI  %JCPI.KJ-CPI  &CVQŏ.GG%JKP%JQPI  Notes : Ύϭ ĞĞŵĞĚŝŶƚĞƌĞƐƚĞĚďLJǀŝƌƚƵĞŽĨŚŝƐƐŚĂƌĞŚŽůĚŝŶŐƐŝŶsŝĐƚŽƌLJ^ŽůƵƟŽŶƐ;DͿ^ĚŶŚĚĂŶĚsŝĐƚŽƌLJ^ŽůƵƟŽŶƐ,ŽůĚŝŶŐƐ^ĚŶŚĚĂƐƉĞƌ^ĞĐƟŽŶϴŽĨƚŚĞ ŽŵƉĂŶŝĞƐĐƚϮϬϭϲ͘ ΎϮ ĞĞŵĞĚŝŶƚĞƌĞƐƚĞĚďLJǀŝƌƚƵĞŽĨŚŝƐƐŽŶ͕/ƐŵĂĞůůŝĂƐƌŝīŝŶDŽŚĚƌŝī͛ƐƐŚĂƌĞŚŽůĚŝŶŐƐŝŶĚƵƐƉĞĐ,ŽůĚŝŶŐƐĞƌŚĂĚ

SUBSTANTIAL WARRANTHOLDERS AS AT 1 JUNE 2021 DIRECT INDIRECT Name No of Warrants % No of Warrants % #WVQPCKTG5FP$JF     .KO'GP*QPI  1  Notes : *1 ĞĞŵĞĚŝŶƚĞƌĞƐƚĞĚďLJǀŝƌƚƵĞŽĨŚŝƐǁĂƌƌĂŶƚŚŽůĚŝŶŐƐŝŶsŝĐƚŽƌLJ^ŽůƵƟŽŶƐ;DͿ^ĚŶŚĚĂŶĚsŝĐƚŽƌLJ^ŽůƵƟŽŶƐ,ŽůĚŝŶŐƐ^ĚŶŚĚƉƵƌƐƵĂŶƚƚŽ^ĞĐƟŽŶϴŽĨƚŚĞ ŽŵƉĂŶŝĞƐĐƚϮϬϭϲ͘

'FWURGE*QNFKPIU$GTJCF (200401008252) 198 Annual Report 2021 ANALYSIS OF WARRANTHOLDINGS #5#6,70' (cont’d)

LIST OF TOP 30 WARRANTHOLDERS AS AT 1 JUNE 2021

No. Name No. of Shares Held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

TOTAL  

'FWURGE*QNFKPIU$GTJCF (200401008252) 199 Annual Report 2021 This page has been intentionally left blank. EDUSPEC HOLDINGS BERHAD 4GIKUVTCVKQP0Q : +PEQTRQTCVGFKP/CNC[UKC FORM OF PROXY

+9G  04+%%QORCP[0Q (Full Name) of (Full Address) DGKPIC OGODGTOGODGTUQHVJGCDQXGPCOGF%QORCP[JGTGD[CRRQKPV (Full Name) 04+%%QORCP[0Q of (Full Address) 6GNGRJQPG0WODGT 'OCKN#FFTGUU

QTHCKNKPI JKOJGT  04+%%QORCP[0Q (Full Name) of (Full Address) 6GNGRJQPG0WODGT 'OCKN#FFTGUU QTHCKNKPI JKOJGTVJG%*#+4/#0QHVJGOGGVKPICU O[QWTRTQZ[VQXQVGHQT OGWUQP O[QWTDGJCNHCVVJG5GXGPVGGPVJ#PPWCN)GPGTCN /GGVKPI ő#)/Œ QH'FWURGE*QNFKPIU$GTJCFVQDGEQPFWEVGFHWNN[XKTVWCNHTQOVJG$TQCFECUV8GPWGCV6TKEQT.GCFGTUJKR7PKV.GXGN 6QYGT#8GTVKECN$WUKPGUU5WKVG#XGPWG$CPIUCT5QWVJ0Q,CNCP-GTKPEJK-WCNC.WORWTQP6JWTUFC[#WIWUVCVCO CPFQTCP[CFLQWTPOGPVVJGTGQHKPVJGOCPPGTKPFKECVGFDGNQY

NO. ORDINARY RESOLUTIONS FOR AGAINST 1. 6QCRRTQXGVJGRC[OGPVQH&KTGEVQTUŏHGGUVQDGRCKFVQ0QP'ZGEWVKXG&KTGEVQTUHTQO#WIWUV WPVKNVJGEQPENWUKQPQHVJGPGZV#PPWCN)GPGTCN/GGVKPI 2. 6Q TGGNGEV /T .KO 6JKCP .QQPI YJQ TGVKTGU D[ TQVCVKQP RWTUWCPV VQ %NCWUG  QH VJG %QORCP[ŏU %QPUVKVWVKQPCPFDGKPIGNKIKDNGQHHGTUJKOUGNHHQTTGGNGEVKQP 3. 6Q TGGNGEV /T 5W -GQPI 5KQPI YJQ TGVKTGU D[ TQVCVKQP RWTUWCPV VQ %NCWUG  QH VJG %QORCP[ŏU %QPUVKVWVKQPCPFDGKPIGNKIKDNGQHHGTUJKOUGNHHQTTGGNGEVKQP 4. 6QTGCRRQKPV/GUUTU7*;CU#WFKVQTUQHVJG%QORCP[HQTVJGGPUWKPI[GCTCPFVQCWVJQTKUGVJG&KTGEVQTU VQſZVJGKTTGOWPGTCVKQP 5. #WVJQTKV[VQ+UUWG5JCTGU2WTUWCPVVQ5GEVKQPCPF5GEVKQPQHVJG%QORCPKGU#EV 6. 4GVGPVKQPQH+PFGRGPFGPV0QP'ZGEWVKXG&KTGEVQTRWTUWCPVVQ2TCEVKEGQHVJG/CNC[UKCP%QFGQP %QTRQTCVG)QXGTPCPEGŌ&CVQŏ&T/QJF#TKHH$KP#TCHH

2NGCUGKPFKECVGYKVJCPő:ŒKPVJGCRRTQRTKCVGDQZCICKPUVVJGTGUQNWVKQPQPJQY[QWYKUJ[QWTRTQZ[VQXQVG+HPQURGEKſEKPUVTWEVKQPCUVQXQVKPIKUIKXGPVJGRTQZ[ will vote at *his/her discretion

0WODGTQH5JCTGU %&5#EEQWPV0Q Date 5KIPCVWTGQH/GODGT%QOOQP5GCN

Notes:-  #OGODGTQHVJG%QORCP[GPVKVNGFVQRCTVKEKRCVGCPFXQVGCVVJGOGGVKPIOC[CRRQKPVQPGQTOQTGRTQZKGU QTDGKPICEQTRQTCVGOGODGTCEQTRQTCVGTGRTGUGPVCVKXG  VQRCTVKEKRCVGCPFXQVGKPJKUJGTUVGCF#RTQZ[OC[DWVPGGFPQVDGCOGODGTQHVJG%QORCP[  9JGTG C OGODGT CRRQKPVU OQTG VJCP QPG   RTQZ[ VJG CRRQKPVOGPV UJCNN DG KPXCNKF WPNGUU JGUJG URGEKſGU VJG RTQRQTVKQPU QH JKUJGT UJCTGJQNFKPIU VQ DG TGRTGUGPVGFD[GCEJRTQZ[  6JGKPUVTWOGPVCRRQKPVKPICRTQZ[KPVJGECUGQHCPKPFKXKFWCNUJCNNDGUKIPGFD[VJGCRRQKPVGTQT JKUJGTCVVQTPG[QTKPVJGECUGQHCEQTRQTCVKQPGZGEWVGFWPFGTKVU EQOOQPUGCNQTUKIPGFQPDGJCNHQHVJGEQTRQTCVKQPD[KVUCVVQTPG[QTD[CPQHſEGTFWN[CWVJQTKUGF  9JGTGCOGODGTQHVJG%QORCP[KUCPGZGORVCWVJQTKUGFPQOKPGGYJKEJJQNFUQTFKPCT[UJCTGUKPVJG%QORCP[HQTOWNVKRNGDGPGſEKCNQYPGTUKPQPGUGEWTKVKGU CEEQWPV őQOPKDWUCEEQWPVŒ CUFGſPGFWPFGTVJG5GEWTKVKGU+PFWUVT[ %GPVTCN&GRQUKVQTKGU #EVVJGTGKUPQNKOKVVQVJGPWODGTQHRTQZKGUYJKEJVJGGZGORV CWVJQTKUGFPQOKPGGOC[CRRQKPVKPTGURGEVQHGCEJQOPKDWUCEEQWPVKVJQNFU  6JGKPUVTWOGPVCRRQKPVKPICRTQZ[CPFVJGRQYGTQHCVVQTPG[QTQVJGTCWVJQTKV[KHCP[WPFGTYJKEJKVKUUKIPGFQTGZGEWVGFOWUVDGFGRQUKVGFCVVJGQHſ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elete where inapplicable PERSONAL DATA PRIVACY $[UWDOKVVKPICPKPUVTWOGPVCRRQKPVKPICRTQZ[ KGU CPFQTTGRTGUGPVCVKXG U VQRCTVKEKRCVGURGCMCPFXQVGCVVJG%QORCP[ŏU#)/CPFQTCP[CFLQWTPOGPVVJGTGQHC OGODGTQHVJG%QORCP[  EQPUGPVUVQVJGEQNNGEVKQPWUGCPFFKUENQUWTGQHVJGOGODGTŏURGTUQPCNFCVCD[VJG%QORCP[ QTKVUCIGPVU HQTVJGRWTRQUGQHVJGRTQEGUUKPICPFCFOKPKUVTCVKQPD[ VJG%QORCP[ QTKVUCIGPVU QHRTQZKGUCPFTGRTGUGPVCVKXGUCRRQKPVGFHQTVJG#)/ KPENWFKPICP[CFLQWTPOGPVVJGTGQH CPFVJGRTGRCTCVKQPCPFEQORKNCVKQPQHVJG CVVGPFCPEGNKUVUOKPWVGUCPFQVJGTFQEWOGPVUTGNCVKPIVQVJG#)/ KPENWFKPICP[CFLQWTPOGPVVJGTGQH CPFKPQTFGTHQTVJG%QORCP[ QTKVUCIGPVU VQEQORN[YKVJ CP[CRRNKECDNGNCYUNKUVKPITWNGUTGIWNCVKQPUCPFQTIWKFGNKPGU EQNNGEVKXGN[VJGő2WTRQUGUŒ   YCTTCPVUVJCVYJGTGVJGOGODGTFKUENQUGUVJGRGTUQPCNFCVCQHVJGOGODGTŏURTQZ[ KGU CPFQTTGRTGUGPVCVKXG U VQVJG%QORCP[ QTKVUCIGPVU VJGOGODGTJCU QDVCKPGFVJGRTKQTEQPUGPVQHUWEJRTQZ[ KGU CPFQTTGRTGUGPVCVKXG U HQTVJGEQNNGEVKQPWUGCPFFKUENQUWTGD[VJG%QORCP[ QTKVUCIGPVU QHVJGRGTUQPCNFCVCQHUWEJ proxy(ies) and/or representative(s) for the Purposes; and  CITGGUVJCVVJGOGODGTYKNNKPFGOPKH[VJG%QORCP[KPTGURGEVQHCP[RGPCNVKGUNKCDKNKVKGUENCKOUFGOCPFUNQUUGUCPFFCOCIGUCUCTGUWNVQHVJGOGODGTŏUDTGCEJ of warranty. #KH@PDEOŃ=LBKNOA=HEJC

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AFFIX STAMP

The Share Registrar EDUSPEC HOLDINGS BERHAD Registration No. 200401008252 (646756-X) Unit 32-01 Level 32 Tower A Vertical Business Suite Avenue 3 Bangsar South 8, Jalan Kerinchi 59200 Kuala Lumpur

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