Registration No. 199501012460 (341662-X) Registration No. 199501012460 2021 Spirit of New Directions New of Spirit ANNUAL REPORT

Resintech Berhad ANNUAL REPORT 2021 Registration No. 199501012460 (341662-X)

: [email protected] : 603-3122 2411 : 603-3122 2422 Email www.resintechmalaysia.my Fax 42500 Telok Panglima Garang 42500 Telok Resintech Berhad Registration No. 199501012460 (341662-X) 14 Lot 3 & 5, Jalan Waja Panglima Garang Kawasan Perindustrian Telok Selangor Darul Ehsan, Malaysia Tel TABLE OF CONTENTS

02 Corporate Information 27 Audit Committee Report 55 Financial Statements

03 Corporate Structure 31 Corporate Governance 175 List of Properties Overview Statement 04 Directors’ Profile 178 Analysis of Shareholdings 48 Statement on Risk 06 Chairman’s Statement Management and Internal 180 Notice of 26th Annual Control General Meeting 08 Management’s Discussion & Analysis 53 Directors’ Responsibilities 184 Administrative Guide Statement 09 Group Financial Highlights Enclosed 54 Additional Compliance 10 Sustainability Statement Form of Proxy Information RESINTECH BERHAD 02 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

CORPORATE INFORMATION

BOARD OF DIRECTORS COMPANY SECRETARIES PRINCIPAL BANKERS Datuk Hj. Abdul Fatah Tan Kok Siong (SSM PC No. Hong Leong Bank Berhad Bin Hj. Iskandar 202008001592 & LS 0009932) Chairman/Senior Independent No. 90 Jalan Persiaran Raja Muda Musa Non-Executive Director Tan Bee Hwa (SSM PC No. 202008001174 42000 Port Klang & MAICSA 7058049) Selangor Darul Ehsan Dato’ Dr. Teh Kim Poo United Overseas Bank (Malaysia) Berhad Managing Director REGISTERED OFFICE 80-84 Jalan 3/6D Lot 3 & 5, Jalan Waja 14 Medan Putra Business Centre Datin Gan Jew Kawasan Perindustrian Executive Director Sri Manjalara Off Jalan Damansara Telok Panglima Garang 52200 Kuala Lumpur Teh Leng Kang 42500 Telok Panglima Garang CIMB Bank Malaysia Berhad Executive Director Selangor Darul Ehsan No. 22A Lorong Batu Nilam 4B Tel : 03-3122 2422 Fax : 03-3122 2411 Wei Hwei Hong Bandar Bukit Tinggi Executive Director WEBSITE & EMAIL 41200 Klang Selangor Darul Ehsan Kok Wee Wah Website: www.resintechmalaysia.my Al Rajhi Banking & Investment Independent Non-Executive Director Email: [email protected] Corporation (Malaysia) Berhad Dato’ Hj. Razif Ratha CORPORATE OFFICE Ground Floor, Wisma Kien Tat Bin Abdullah No. 1 & 3, Jalan Miri, Off Jalan Raja Bot Lot 3 & 5, Jalan Waja 14 Independent Non-Executive Director 41000 Klang Kawasan Perindustrian Selangor Darul Ehsan Telok Panglima Garang 42500 Telok Panglima Garang STOCK EXCHANGE LISTING AUDIT COMMITTEE Selangor Darul Ehsan Main Market of Bursa Malaysia Securities Tel : 03-3122 2422 Fax : 03-3122 2411 Kok Wee Wah (Chairman) Berhad Datuk Hj. Abdul Fatah Bin Hj. Iskandar Stock Name : RESINTC AUDITORS Dato’ Hj. Razif Ratha Bin Abdullah Stock Code : 7232 Crowe Malaysia PLT NOMINATION COMMITTEE Chartered Accountants Datuk Hj. Abdul Fatah Bin Hj. Iskandar Level 16, Tower C (Chairman) Megan Avenue 2 Dato’ Hj. Razif Ratha Bin Abdullah No. 12, Jalan Yap Kwan Seng Kok Wee Wah 50450 Kuala Lumpur

REMUNERATION COMMITTEE SHARE REGISTRAR Kok Wee Wah (Chairman) Boardroom Share Registrars Sdn. Bhd. Datuk Hj. Abdul Fatah Bin Hj. Iskandar 11th Floor, Menara Symphony Dato’ Hj. Razif Ratha Bin Abdullah No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, RISK MANAGEMENT COMMITTEE Selangor Darul Ehsan Kok Wee Wah (Chairman) Tel : 03-7890 4700 Fax : 03-7890 4670 Dato’ Hj. Razif Ratha Bin Abdullah Datuk Hj. Abdul Fatah Bin Hj. Iskandar RESINTECH BERHAD Registration No. 199501012460 (341662-X) 03 ANNUAL REPORT 2021

CORPORATE STRUCTURE

Registration No. 199501012460 (341662-X)

100% 100% 100% 100% 100% 100% Resintech Sarpino’s Resintech Johan Plastics Resintech Pizzeria TCT Metal -Kapar Panglima (M) (Sarawak) Plastics (M) (Cambodia) Sdn Bhd Sdn Bhd Sdn Bhd Sdn Bhd Sdn Bhd Co. Ltd

100%

PT Resintech Indomas

100%

Resintech (Sabah) Sdn Bhd

100% Resintech Products Marketing Sdn Bhd

100%

Exact Link Sdn Bhd RESINTECH BERHAD 04 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

DIRECTORS’ PROFILE

Datuk Hj. Abdul Fatah Bin Dato’ Dr. Teh Kim Poo Hj. Iskandar Managing Director Chairman / Senior Independent Malaysian I Male I Age 70 Non-Executive Director Malaysian I Male I Age 65 Dato’ Dr. Teh Kim Poo is the founder and Managing Director of the Company, was appointed to the Board on Datuk Hj. Abdul Fatah Bin Hj. Iskandar was appointed to 24 April 1995. Dato’ Dr. Teh obtained a PhD in Total Quality the Board on 30 August 2017. He is also the Chairman Management (TQM) from Newport University USA in 2002. of the Nomination Committee and a member of the He also possesses a Diploma in Accounting (LCCI), Post Audit Committee, Remuneration Committee and Risk Graduate Diploma in Marketing (CIM, UK) and Master in Management Committee. Datuk Hj. Abdul Fatah started Business Administration in Marketing from University of his career as teacher in Maktab Perguruan Bahasa in Hull, UK. He is also a chartered marketer of the Chartered 1978 after obtained his Diploma from Maktab Perguruan Institute of Marketing (CIM, UK). Dato’ Dr. Teh possesses Bahasa. He also served as Executive of Councillor of in-depth knowledge and vast experience in the plastics Selangor’s State in 1995. In 2015, he served as Special industry and has successfully built up the Group into Officer to Minister of Home Affairs and within the same one of the more prominent plastic pipe manufacturers year he was appointed as Political Secretary to Deputy in Malaysia. As the Managing Director, he is responsible Prime Minister. for the overall management and strategic direction of the Group. He does not hold any directorship in other public companies and listed issuers in Malaysia. Dato’ Dr. Teh was the State Assemblyman of Kawasan Pandamaran Selangor from 2004 to 2008. Dato’ Dr. Teh was also the Port Klang Authority Chairman and Malacca Dato’ Hj. Razif Ratha Bin Abdullah Port Authority Chairman from 2011 to 2014. Dato’ Dr. Teh Independent Non-Executive Director was appointed as the Port Klang Free Zone Chairman from April 2011 to 2015. Malaysian I Male I Age 65 He does not hold any directorship in other public Dato’ Hj. Razif Ratha Bin Abdullah was appointed to the companies and listed issuers in Malaysia. Board on 6 July 2018. He is a member of Nomination Committee, Remuneration Committee, Audit Committee and Risk Management Committee. He graduated in BA (Hons) of Economics from University Malaya in 1980 and Datin Gan Jew LLB (Hons) from University of London in 1994. He also Executive Director possesses a Diploma in Islamic Studies, International Malaysian I Female I Age 67 Islamic University Malaysia and Certificate in Legal Practice (CLP). His immediate past appointment was Deputy State Datin Gan Jew is the co-founder and Executive Director of Director of Customs Malaysia. He provides professional the Company, was appointed to the Board on 24 April 1995. consultation and advice to the Company on tax, which he She has vast experience in the handling of manufacturing is able to leverage his experience of over thirty seven (37) operations of the Group. She is well versed with all the years in the industry. operations on the production floor and her management style encompasses a very hands-on approach. She is also He does not hold any directorship in other public experienced in human resource matters and has been companies and listed issuers in Malaysia. very much involved in the selection and co-ordination of the Group’s employees. She is currently oversee the cost savings operations of the Group, a role where she is able to leverage upon her experience of over thirty (30) years in the industry.

She does not hold any directorship in other public companies and listed issuers in Malaysia. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 05 ANNUAL REPORT 2021

Directors’ Profile (cont’d)

Teh Leng Kang Kok Wee Wah Executive Director Independent Non-Executive Director Malaysian I Male I Age 45 Malaysian I Male I Age 55

Mr Teh Leng Kang was appointed to to the Board on Mr. Kok Wee Wah was appointed to the Board on 25 July 2006. He graduated from Western Michigan 22 February 2008. He is the Chairman of the Audit University with a degree in Mechanical Engineering. He Committee, Remuneration Committee, Risk Management joined Resintech Plastics (M) Sdn. Bhd. in 1998. He was Committee and a member of Nomination Committee. Mr. Kok is a fellow member of Association of Certified in the Production Department during the first two (2) years Chartered Accountants (ACCA) and also a member of of his service, where he gained invaluable knowledge and Malaysia Institute of Accountants (MIA). He has many experience in the machineries and production processes. years of experience in one of the big four (4) accounting Subsequently, he joined the Group’s Sales and Marketing firms and has worked in many other industries before Department, wherein he expanded his knowledge in our he joined Resintech-Kapar Sdn. Bhd. in 2006. Mr. Kok sales and marketing activities. Mr. Teh was one of the resigned as the General Manager of Resintech-Kapar key persons involved in the launching and marketing Sdn. Bhd. in February 2008 and took on the position in of the HDPE corrugated sewer pipe in 2000. Over the the Board of Directors as Non-Independent Non-Executive years, he has continued to play a significant role in the Director. He was then re-designated to Independent Non- managing production operations and has set his sights Executive Director on 15 June 2010. now on expanding the Group’s business. He is currently He does not hold any directorship in other public oversee the Group’s entire operation and also a member companies and listed issuers in Malaysia. of Research & Development team, where he plays an important role in defining the scope of research and its objectives. He was appointed as the Management Representative position of Resintech Plastics (M) Sdn. Notes to Directors’ Profile Bhd.’s ISO Team in 2003. Over the years, he had led the Group in setting up numerous new operations, both locally Family Relationships and overseas. Save for the following, none of the Directors has any family relationships with any other Directors and/or major He does not hold any directorship in other public shareholders:- companies and listed issuers in Malaysia. • Dato’ Dr. Teh Kim Poo is the spouse of Datin Gan Jew, a Director and major shareholder of the Company. He is also the father to Mr. Teh Leng Kang, a Director of the Wei Hwei Hong Company. Executive Director Malaysian I Female I Age 45 • Mr. Teh Leng Kang is the spouse of Ms. Wei Hwei Hong, a Director of the Company and the son of Dato’ Dr. Teh Ms Wei Hwei Hong is an Executive Director and Financial Kim Poo and Datin Gan Jew.

Controller of the Company. She was appointed to the Conflict of Interest Board on 25 July 2006. She graduated from the University of Sheffield with a Bachelor of Arts (Hons). She is a fellow None of the Directors has any conflict of interest with the member of Association of Certified Chartered Accountants Company. (ACCA) and also a member of Malaysia Institute of Accountants (MIA). Ms. Wei possesses hands-on audit Conviction of Offences experience in one of the big four (4) accounting firms None of the Directors has been convicted any offences for a period of three (3) years, working on a vast array of (other than traffic offences) within the past five (5) years projects. She joined Resintech Plastics (M) Sdn. Bhd. in and there was no public sanction or penalty imposed by the May 2003 and currently she is responsible for overseeing relevant regulatory bodies during the financial year 2021. the Accounts and Finance Department of the Group. Attendances at Board Meetings She does not hold any directorship in other public companies and listed issuers in Malaysia. The details of the Directors’ attendance at the board meetings are set out on page 34 of this Annual Report.

Directors’ Shareholdings

The details of the Directors’ Shareholdings are set out on page 178 of this Annual Report. RESINTECH BERHAD 06 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

CHAIRMAN’S STATEMENT

Dear Valued Shareholders,

On behalf of the Board of Directors (“the Board”) of Resintech Berhad (“Resintech” or “the Group”), it gives me immense pride to present to you the Group’s Annual Report and Financial Statements for the financial year ended 31 March 2021.

The financial year under review continued to experience economic downturn and uncertainty – due to the pandemic-driven, challenging market conditions in Malaysia. As a result, industries related to the Group’s businesses, such as construction and infrastructure industries, have also encountered a slowdown.

Before the COVID-19 has taken the world by storm, the Malaysian plastic pipes, water tanks, and fittings industry have witnessed a healthy growth over the last couple of years. However, we believe that the industry growth outlook after the pandemic will remain strong, driven by the Malaysian government’s focus on expanding areas for construction and infrastructure nationwide.

At Resintech, even during this turbulent time, we stand confident. We have responded to these headwinds by being far-sighted and well-prepared – thanks to the Group’s resilient business model and robust core competencies.

Therefore, despite the overarching global health concerns, economic crisis, and stalling demand, the Group has remained steadfast in its course of the mission and continued to perform steadily during the financial year under review.

FINANCIAL AND OPERATIONAL HIGHLIGHTS Additionally, in defiance of the continued market disturbance, the Group registered an increase in earnings On the financial front, the Group’s revenue for the financial per share at 4.28 sen in 2021 compared to 2.92 sen in year under review stood at RM78.78 million, lower than 2020 (a rise of 46.58%); net assets per share 119.73 the recorded RM79.72 million revenue generated in the sen in 2021 compared to 118.66 sen in 2020. previous financial year. DIVIDENDS Despite the slight drop in revenue, the Group has an overall better performance which is evident in our profit before Resintech has again fulfilled our dividend policy. We are taxation (RM8.03 million in 2021 and RM6.10 million in pleased to report that the Group approved a total dividend 2020; 32% growth). of RM1.72 million (total dividend yield: 2.77%) to our shareholders for the financial year ended 31 March 2021. The Group consistently creates exceptional customer value through paying dividends and redeploying cash. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 07 ANNUAL REPORT 2021

Chairman’s Statement (cont’d)

PROSPECTS AND BUSINESS OUTLOOK As of now, the Group has invested in advanced machine ties, expanded our product line (triple wall profile pipes with This year presented an unprecedented challenge for larger diameters), explored solar energy, and commenced everyone and many industries. Specifically, the Malaysian a new production facility at the Demak Laut Industrial Park government’s containment measures and Movement in Kuching, Sarawak. Plans to expand this new facility are Control (MCO) had gravely affected Malaysia’s economy, also in progress. and much uncertainty remains for 2021. This past year highlighted the resilient nature of our Business activities continue to be relatively stagnant business. Resintech is well-positioned for long-term growth due to the continued fluctuating number of infection and sustainability, ready to deliver substantial value to our cases. However, the Group is confident of picking up shareholders. the momentum gradually once the restrictions are lifted and markets reopen. Of course, the restoration rate of ACKNOWLEDGEMENTS business activity may be of varying degrees according to region. As always, on behalf of the Board, I would like to extend our thanks to the Group’s stakeholders. Our loyal At Resintech, the safety of our people is our most shareholders, thank you for your continued support; the important core value. Since the Covid-19 pandemic, the Board, our management team, and staff, thank you for Group has taken a proactive stance in adopting strategic your extraordinary commitment, dedication, and hard work measures to respond to the pandemic efficiently. We have as the Group accelerates forward. kept our employees safe and minimized the impact of Covid-19 while maintaining our business performance in a Finally, I would like to express our gratitude towards our pragmatic and focused manner. valued clients, business associates, vendors, financiers, government authorities, and other stakeholders. Based on decades of the Group’s manufacturing experience, our strategic cornerstone to keep the Group Thank you! striving and remaining competitive on the marketplace is by strengthening our positioning and diversifying our portfolio through product innovation and improvement. Datuk Hj. Abdul Fatah Bin Hj. Iskandar Chairman/Senior Independent Non-Executive Director RESINTECH BERHAD 08 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

MANAGEMENT’S DISCUSSION & ANALYSIS

GROUP OVERVIEW Resintech Berhad is a company listed on Bursa Malaysia Securities Berhad in Dec 2006. The Group’s main business is manufacturing and trading of a diversified plastics building materials, which accounts to most of its revenues and profits. Earnings from other smaller divisions are insignificant FINANCIAL RESULTS

2021 2020 2019 2018 2017 Revenue (RM’000) 78,783 79,716 84,782 76,214 77,585 Profit before taxation (RM’000) 8,032 6,104 5,113 3,847 10,257 Finance Costs (RM’000) 1,164 1,499 1,643 1,325 1,524 Profit attributable to owners of parent 5,867 4,011 3,505 1,879 8,715 (RM’000) Shareholders’ equity (RM’000) 164,281 162,802 138,934 132,756 129,397

Total assets (RM’000) 222,962 212,585 188,462 182,402 171,608

OD - 5,570 6,010 2,938 2,977 Short term borrowings 18,137 12,319 16,811 18,844 14,390 Long term borrowings 5,119 4,355 3,909 3,676 1,119 Borrowings 23,256 22,244 26,730 25,458 18,486 Debt/Equity 14% 14% 19% 19% 14%

Earnings per share (sen) 4.28 2.92 2.55 1.37 6.35 Dividend per share (sen) 2.75 N/A 2.50 N/A 1.20 Net assets per share (sen) 119.73 118.66 101.26 96.76 94.31

FINANCIAL POSITIONS As at 31 March 2021, the Group has trade and other receivables of RM33.8million, a small increase of 8.0% as compared to RM31.3million as at 31 March 2020 mainly due to increase in other receivables at financial year end. As at 31 March 2021, the Group has trade and other payables of RM14.0million, an increase of 1.3 folds as compared to RM6.1million as at 31 March 2020 largely due to 2 folds increase in due to trade suppliers at year end. The Group maintains group cash management system which enables the funding of operations of the entire Group of Companies. The Group has credit facilities as required in support of manufacturing and trading activities as well as working capital requirements and capital expenditures which is required to sustain and expand the businesses. The Group anticipates sufficient liquidity for the year ahead. PRICE AND FOREIGN CURRENCY RISK The inputs of the Group’s manufacturing activities is depending on the price of crude oil as well as the movements in US Dollar. Crude oil price tends to be cyclical and subject to fluctuations. The Group is exposed to foreign currency risk on such transactions and balances that are denominated in US Dollar. Unfavourable fluctuations will affect our cost competitiveness, financial results and financial commitments. The foreign currency risk is partially managed through a natural hedge between the sales and purchases in the same currencies, and remaining being monitored closely on an on-going basis to ensure that the net exposure is at an acceptable level. DIVIDEND POLICY The Company does not have a fixed long-term dividend policy. In deciding the dividend payout for each year, the Board considers the strength of cash flow from operating activities, the cash outlay commitments and the future plans of the Group. Dividend was declared and paid during the year 2021. PROSPECT MOVING FORWARD The Group’s prospects can be found in the Chairman’s Statement. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 09 ANNUAL REPORT 2021

GROUP FINANCIAL HIGHLIGHTS

2021 2020 2019 2018 2017 Revenue (RM’000) 78,783 79,716 84,782 76,214 77,585 Profit before taxation (RM’000) 8,032 6,104 5,113 3,847 10,257 Total assets (RM’000) 222,962 212,585 188,462 182,402 171,608 Earnings per share (sen) 4.28 2.92 2.55 1.37 6.35 Shareholders’ equity (RM’000) 164,281 162,802 138,934 132,756 129,397 Net assets per share (sen) 119.73 118.66 101.26 96.76 94.31

REVENUE (RM’000) TOTAL ASSETS (RM’000) 86,000 250,000 84,000 200,000 82,000 80,000 150,000 78,000 76,000 100,000 74,000 50,000 72,000 70,000 2021 2020 2019 2018 2017 2021 2020201920182017

PROFIT BEFORE TAXATION (RM’000) EARNING PER SHARE (SEN)

12,000 7

10,000 6 5 8,000 4 6,000 3 4,000 2 2,000 1

2021 2020 2019 2018 2017 2021 2020201920182017

SHAREHOLDERS’ EQUITY (RM’000) NET ASSETS PER SHARE (SEN) 180,000 140.00 160,000 120.00 140,000 100.00 120,000 80.00 100,000 60.00 80,000 60,000 40.00 40,000 20.00 20,000 0.00 2021 2020 2019 2018 2017 2021 2020201920182017 RESINTECH BERHAD 10 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

SUSTAINABILITY STATEMENT

ACCOMPLISHING SUSTAINABIITY QUALITY WITH RESILIENCE

SCOPE

This Statement encompasses the sustainable development of Resintech Berhad and its subsidiary companies (“the Group”).

REPORTING PERIOD

This Statement covers the reporting period from 1 April 2020 to 31 March 2021.

ABOUT THIS STATEMENT

Our theme “Accomplishing Sustainability Quality with Resilience” highlights our efforts to continue progress towards a sustainable future with the on-going material and technology advancements in the industry.

Our Sustainability Reporting (“SR”) focuses on Resintech Berhad’s (“Resintech” or “the Company”) sustainability practices in which we focus and highlight more on the economic, environmental, and social (“EES”) impacts of our activities and initiatives. This year will be our third full disclosure in compliance with Bursa Malaysia Securities Berhad (“Bursa Securities”) requirements, and we are reporting in accordance with the Global Reporting Initiative (“GRI”) Standards for sustainability reporting, prioritising our focus on reviewing our material issues and mapping out our route forward to embed sustainability throughout our business operations.

The Sustainability Statement (“Statement”) sets out on the areas that the Board of Directors (“Board”) considers as material sustainability risks and opportunities, collectively known as Material Sustainability Matters, that impact the way the operations of the Group are carried out as well as management on Material Sustainability Matters.

Furthermore, throughout this SR, we demonstrate our full commitment to integrate sustainability practices and preparing this statement in pursuant to the following:

In preparing this Statement, the Board has also considered the Sustainability Reporting Guide - 2nd Edition and its accompanying Toolkits, issued by Bursa Securities. The contents of this Statement encompass the Group’s key business operations, which comprise the manufacturing and trading of products. This Statement emphasises the Group’s commitment towards ensuring that its business operations are carried out sustainably and responsibly, taking cognisance of the EES implications it is exposed to. Also, throughout this report, we demonstrate our full commitment to integrating sustainability practices and preparing this report in pursuant to Main Market Listing Requirements of Bursa Securities, Sustainability Reporting Guide issued by the Exchange and guided with guidelines issued by the GRI.

SUSTAINABILITY GOVERNANCE

Whilst the Board is primarily responsible for the sustainability performance of the Group, it has delegated to the Audit Committee to oversee the risk management and internal control system, which includes the exposure of the Group to sustainability risk. The Group integrates sustainability into its risk management system, where sustainability is invariably a mooting point at the Audit Committee meetings when risk management matters are discussed and deliberated upon, especially when an update of the risk profile of the Group is undertaken.

The Audit Committee is assisted by the Executive Director (“ED”) in providing updates on matters related to risk and sustainability. The outcome of the Audit Committee meeting would be reported by Audit Committee Chairman to the Board for further deliberation.

The ED, Financial Officer (“CFO”), who is the main drivers of sustainability measures and initiatives are supported by their team of senior management personnel in implementing the strategies towards achieving sustainable performance of the Group.

REPORTING STANDARDS GRI - [102-2, 102-3, 102-4, 102-50, 102-52]

We have based our reporting approach on the framework and guidance provided by GRI. This report has been prepared in accordance with the “core” option of the GRI Standards. This includes adhering to the GRI Principles for defining report content:

Stakeholder Sustainability Inclusiveness Context Materiality Completeness

Being responsive Presenting Focusing on issues Including all information that to stakeholder performance in the where we can have the is of significant economic, expectations and wider sustainability greatest impact and environmental and social interest. context. that are most important impact to enable stakeholders to our business to assess the Company’s stakeholders. performance. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 11 ANNUAL REPORT 2021

Sustainability Statement (cont’d)

REPORTING SCOPE AND BOUNDARIES GRI - [102-54, 102-46] Resintech’s SR 2021 has been prepared in accordance with the Bursa requirements and GRI Standards. Our main focus for this year is relating to reviewing our material sustainability topics that cover economic, environmental and social aspects. The content of this report is based on the material topics that we have identified. Our scope and boundaries cover all our entities and operations in Malaysia. The Company is advised by an external consultant to assist in the sustainability reporting enhancement and to support comprehensive sustainability efforts across the Company’s development. This statement was also reviewed by external auditors. ABOUT RESINTECH GRI - [102-1, 102-2, 102-3, 102-4, 102-6, 102-16]

Resintech is projected to become the manufacturer and marketer with the widest range of plastic pipes and containers in Malaysia. (widest range of plastic pipe systems and tanks)

Resintech, in its well-diversified lines of business, will progress with new opportunities and be the leader in an ever-changing market. We will be driven by our commitment to continuous quality improvement and to meet in all of our customers’ expectations. We will gain a competitive advantage through this, and by building on our existing strengths and developing new competencies. We will be market-driven, efficient, excellent and successful. Our success will make Resintech a company that our customers, employees and communities can depend on.

Our Core Value

Customers We place customer care as the top priority. Employees Employee care is at the heart of our business. We nurture our employees through training and development in the belief that it is only through employee care that we can sustain the quality of our service to customers. Quality and Excellence Through innovation and use of advanced technology we strive to maintain the highest standard of consistently throughout our wide range of products. Every task can be continually improved. Teamwork We value teamwork to build an effective employee mutual relationship. Effectiveness increase when we exchange ideas and share responsibilities. Innovation As the Company continue to innovate through developments is valued to sustain the vitality in our business. Honesty and Integrity We value honesty and integrity to build a trust. Positive Social Contribution We make a meaningful contribution in our communities.

WHO WE ARE The Company is a fully integrated Company involved in innovating, designing, manufacturing and marketing a diversified range of UPVC and Polyethylene products. The Company has been constantly pushing ahead, achieving goals after goals due to the untiring effort and able leadership from the Man at the Helm – The Founder and Managing Director, Dato’ Dr. Teh Kim Poo whose experience in manufacturing and trading dated back to 1977. He assures an ever-vibrant approach to the business of Resintech. Founded by Managing Director, Dato’ Dr. Teh Kim Poo, whose experience in manufacturing and trading dated back to 1977, the Company has been constantly pushing ahead. His ever-vibrant approach to business has transformed the Company into a fully integrated Company involved in innovating, designing, manufacturing and marketing of diversified range of UPVC and Polyethylene products. Our subsidiaries own modern plants with State-of-the-Art Production Machineries with experienced and highly qualified workforce, advanced production techniques, an efficient infrastructure and long-term sustainable solutions to serve customer needs which had been accredited the MS ISO 9001:2000 for Quality Management System. Resintech had enhanced its competitiveness to meet the challenges of Globalization, arising from the advent of the AFTA. The Group’s current principal activities are in the manufacturing and trading of a diversified plastics building materials. RESINTECH BERHAD 12 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Sustainability Statement (cont’d)

OUR CONTRIBUTION TOWARDS SUSTAINABLE DEVELOPMENT Achieving the 17 Sustainable Development Goals (SDGs) set by the United Nation General Assembly in 2015 to counter major global issues such as urbanisation, climate change, resource scarcity, demographic and social change and global economic condition by the year 2030 entails contributions from governments, civil society and businesses.

Aligning ourselves to the aspirations of the Government of Malaysia, we have adopted these goals as part of our sustainability journey. We identified five SDGs that the Group commits to support directly and/or indirectly i.e. SDG No 3, 4, 7, 8 and 16. SDG ADOPTION

SDG No 3 We are committed to creating a safe workplace and promoting healthy living amongst our employees. SDG No 4 We provide highly intensive training and retraining to our staff due to the nature of our business. SDG No 7 Energy Conservation. SDG No 8 We aim to create a workplace that is conducive to productivity and growth by providing job opportunities and equipping our employees with various training and development programmes. SDG No16 We place ethics and integrity at the centre of our business operations and have policies in place towards embedding such values throughout our organisation.

WHAT WE DO The operations of the Company are currently organized into innovating, designing, manufacturing, and marketing a diversified range of uPVC and Polyethylene products. LOCATION OF REGISTERED OFFICE Lot 3 & 5, Jalan Waja 14, Kawasan Perindustrian Telok Panglima Garang, 42500 Telok Panglima Garang, Selangor Darul Ehsan. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 13 ANNUAL REPORT 2021

Sustainability Statement (cont’d)

PRINCIPAL PLACE OF BUSINESS Lot 3 & 5, Jalan Waja 14, Kawasan Perindustrian Telok Panglima Garang, 42500 Telok Panglima Garang, Selangor Darul Ehsan. REVIEW OF OPERATIONS The Company’s reviews of operations are elaborated in “Management Discussion and Analysis” section of this Annual report. OUR APPROACH TO DRIVING SUSTAINABILITY

Our approach to sustainability is based on our core values of excellence, united we achieve, integrity, humility and building relationship, supported by policies and procedures at the Company level. We consistently embed sustainability into the core of our business. The following value-added sustainability framework forms the basis of Resintech’s steps to strengthen our approach to sustainability.

SUSTAINABILITY STRATEGY GRI - [102-14] 1. As a Public Listed Company • As a public listed company, we are pre-emptive of the sustainability matters mainly on the economic value creation for the shareholder and stakeholder; • We plan to elevate sustainability in company governance, through engaging in direct board oversight and accountability over environmental and social issues, more diversity and special expertise on boards, and linking executive and other employee compensation to sustainability goals; • We want to have robust regular dialogues with key company stakeholders on sustainability challenges, including employees, suppliers, customers, bankers and investors; • We are in progress to open reporting on sustainability strategies, goals and accomplishments; • We are in progress to develop systematic performance improvements to achieve environmental neutrality and other sustainability goals across the entire value chain, including operations, supply chains and products.

2. As a products provider and contractor • We plan to give quality products to all of the clients as they are part of our valued stakeholders, • We plan to complete and deliver our projects on time.

Our Roadmap to Sustainability Moving forward, our sustainability strategy will be led by the Board of Directors of Resintech, and will be implemented and monitored within the following governance framework.

SUSTAINABILITY STRUCTURE Board of Directors The Board oversees the overall sustainability framework and sets policies to drive sustainability practices in the Company. Business Segment Sustainability The Company Sustainability Steering Team interfaces with respective Sustainability Steering Teams of Steering Teams each Business Segment who drive the sustainability efforts and initiatives while ensuring consistency with the Company’s Sustainability Strategy and Business Strategy. Business Segment Sustainability Dedicated working Company’s implements the sustainability efforts and initiatives and meets on a regular Working Teams basis to review progress against the plan.

Our success as an organisation relies on the strong and continuing support of our customers, suppliers, business partners, governments and other stakeholders. We believe that being a corporate citizen and contributing to the vitality of our marketplace are the best ways to command our stakeholders’ respect and confidence. Business ethics, corporate governance and stakeholder engagement are therefore of key material importance for our Company as a whole. We worked closely with all our internal and selected external stakeholders to determine sustainability risks and opportunities with particular focus given to economic, environmental, and social risk factors. We understand that each stakeholder has different requirements and concerns, therefore we engaged our stakeholders in various ways to further understand their concerns, interests, and obstacles. RESINTECH BERHAD 14 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Sustainability Statement (cont’d)

GOVERNANCE OF THE SUSTAINABILITY Being a public listed company, Resintech complies with the high standards of corporate governance (“CG”) practices and being closely monitored under the leadership of our Board of Directors, as guided by the Malaysian Code on CG 2017. In line with sustainability, the Board has the ultimate responsibility to ensure that the sustainability efforts are embedded in the strategic direction of the Company. ORGANISATION STRUCTURE FOR SUSTAINABILITY GRI - [102-18, 102-32]

BOARD OF DIRECTORS

Corporate Sustainability Committee

Sustainability Respective Coordinator (PIC) Stakeholders

CSC Working CSC Working CSC Working CSC Working Group 1 Group 2 Group 3 Group 4

RESPONSIBILITIES OF CORPORATE SUSTAINABILITY COMMITTEE (“CSC”) • Advising the Board on the sustainable strategies; • Monitoring the implementation of sustainability strategies as approved by the Board; • Overseeing stakeholder engagement to ensure that all issues, grievances and suggestions raised are taken into consideration in managing sustainability matters; • Recommending to the Board its approval for its sustainability-related policies and goals; • Monitoring the implementation of policies and initiatives of sustainability management; • Overseeing the management of sustainability matters by focusing on matters material to the Group; • Overseeing the preparation of the Sustainability Statement and recommending it for Board’s approval.

STRATEGIES AND DIRECTIONS Despite the challenging operating environment, Resintech continues to practice prudence and stay focused on delivering quality growth, while being watchful of emerging risks. Resintech is fully committed to uphold responsible financing which is reflected through its prudent infrastructure transformation as well as sustainability in its supply chain. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 15 ANNUAL REPORT 2021

Sustainability Statement (cont’d)

OUR MATERIALITY ASSESSMENT PROCESS GRI - [102-47]

1. Objectives & Scope Resintech undertook a materiality study within the top management and middle management to determine the objectives and scope of the sustainability reporting. Our scope and boundaries cover all our entities and operations in Malaysia.

2. Identi cation 3. 1. Objectives and Categorisation 4. 5. Process Stakeholder 6. Validation & Scope of Sustainability Priorisation Review Engagement Issues

t • Optimization/ Resources • Reputation • Market Condition • Procurement • Compliance • Corporate Governance • Local Environment Impact • Customer Privacy • Safety • Product Mix Important Very Importan Factors Materiality • Quality • Business Ethics/Code

Important Very Important

2. Identification of Relevant Sustainability Matters The process initiated with sustainability issues relevant to Resintech and its stakeholders. In generating the list, the Group assesses the operating environment and emerging trends affecting our sector and conducted study across a broad range of references to identify the relevant sustainability issues. The references include Bursa Malaysia’s Sustainability Reporting Guide and Toolkits, and international standards such as the Global Reporting Initiative Standards on a segment basis. Moving forward in 2021, we plan to undertake a continues review of material factors and sustainability matters in order to ensure that our understanding of both the current and future risks and opportunities facing our markets is adequately addressed, as well as to gather stakeholder perspectives and ensure that we are responding to their needs. As we update our material factors, we will continue to evolve our management approach to ensure that we are addressing them in a holistic and integrated manner. This may involve developing new policies and procedures, implementing various initiatives, measures and action plans, setting indicators as well as to establish a proper mechanism to capture, analyse and report sustainability data and information. RESINTECH BERHAD 16 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Sustainability Statement (cont’d)

Materiality Matrix GRI - [102-47] Materiality assessment is an important tool to identify the most relevant economic, environmental and social priorities that are consistent with our business strategy. We identified, assessed and prioritised material sustainability matters. The output of the assessment was plotted on a matrix which illustrates the impact of each material factor on the Company’s business as well as the stakeholders. This year we have maintained the same materiality matrix as it remains relevant to the Company’s operations.

• Social Media • Local Environment Impact • Business Mix • Climate Change Important • Global Pandemic Important Very Important

Significance of Resintech Economic, Environmental and Social Impacts

OUR MATERIAL FACTORS GRI - [102-47] As we monitor, manage and report on a wide variety of issues, the key to our approach is focusing our resources on material sustainability risks and opportunities that are associated with each material factor. Understanding our key priorities allows us to set our time, resources and investment to the best use. The materiality process involved several steps including: • Identification of potential material topics by reviewing GRI aspects, benchmarking against key corporate peers and analysing past reports, which reflects the feedback from customers, community representatives and employees generally. • Inventory of aspects and topics most important to external stakeholders, customers and their supply chain vendors, based upon requests, surveys and ongoing engagement during the reporting period. The materiality factors are based on the priority of the organisation.

A. BUSINESS - KEY MATERIALITY GRI - [102-47]

Material Description What Are The Risk What Are The Opportunities Factors Resintech is exposed to Lesser chance to secure Innovative products and eco- competition within the industry. contracts will impact our friendly system could be offered business and performance. to the clients as to improve on our core value. Regional partnerships and collaborations. Competition

A well-facilitated business, Any event – such as breaches Having a robust approach to supported together with in regulation, lack of effective ensure the integrity and stability an effective and balanced CG practices – that undermines of the market serves to engender regulatory framework that integrity or stability will influence trust and confidence, which in provides adequate levels stakeholder confidence, andturn encourages participation of client’s protection while possibly participation, in the and growth. facilitating business efficiency market. and innovation, is imperative Fostering a strong CG and for the continued growth and sustainability culture will also development of our business. drive long-term value, both in Market Stability the market and within Bursa Malaysia.

Combining the views from stakeholders and the Resintech’s Management from the preliminary materiality process, the materiality table has been derived to show the different levels of importance of the sustainability matters. The below factors will be further enhanced in the coming years. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 17 ANNUAL REPORT 2021

Sustainability Statement (cont’d)

B. MATERIAL FACTORS - SIGNIFICANCE (ECONOMIC- E1, ENVIRONMENT-E2, SOCIAL-S)

Factors Why Material Managing Materiality Optimisation/ Resources To help us become efficient Taking the necessary measures (E1,E2) and effective. that all our staffs and resources are being optimised. Market Condition (E1) Market condition affects all Our business very much depends businesses in every industry. on the market condition where we conduct a market study prior to engaging in any projects. Compliance (E2,E3, S) Compliance with laws and We provide adequate training and regulations is one of our resources to ensure we meet main requirements. compliance obligations. Safety (E2, S) Impact on the safety of the We support the ongoing training workforce to avoid workplace of operational teams to ensure injuries and customers understanding in recognising and to ensure the safety of improving as well as maintaining products. safe working conditions and practices. Quality (E1, E2, S) It is part of our core business By obtaining prompt stakeholder value to satisfy all of our feedback to gauge our quality. customers. Reputation (E2,S) To get a more realistic We take initiatives to enhance picture of how the business our reputation by providing is being perceived by others. balanced reporting. Procurement (E1, E2) It ensures the stable, We always lookout for the best sustainable procurement quality and good pricing to be and supply of resources. competitive. Corporate Governance (E1, To ensure that we protects Governance is conducted E2, S) the members, officers and according to various regulations management. and subcommittees. The board oversees the governance based on a quarterly review of MATERIALITY Very ImportantVery management reporting. Customer Privacy (E1, E2) It is important to build We take necessary measures to customer trust and loyalty. protect the customer’s privacy by having our staff trained on this matter. Product Mix (E1, E2) To have a variety of products To be highly competitive we take that will fit each customer’s the initiatives to create a variety needs. of segments. Business Ethics/ Code (E1, Maintaining business ethics We proactively promote and E2, S ) is our core values. positively reinforce good behaviours to the employees. Social Media (E2,E3, S) The use of social media We engage social media to boosts visibility among promote our service and product. potential customers and improves awareness about our brand. Local Environment Impact It safeguards the We monitor and review the environment impact. environmental compliance strategy and performance. Business Mix (E1,E2, S) Diversification is part ofWe always look out for synergy our business model to stay businesses which create a better sustainable. value to our core business. Climate Change (E1,E2) Climate change would have We managed this by creating a significant impact ona good project management business. team which looks into all the scenarios. RESINTECH BERHAD 18 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Sustainability Statement (cont’d)

Global Pandemic (E1, E2, S) This has a major impact on We manage this by having our business, staff/workers an online marketing effort to and also to our productivity. contact customers. As for staff /workers, we have educated them on the stringent Standard Operating Procedure in the office and home. As for the productivity enhancement effort taking into

MATERIALITY consideration (due to MCO by Very ImportantVery the government) we created a job rotation system to maximise the output.

3. OUR STAKEHOLDERS ENGAGEMENT Our interaction involves a large number of different stakeholders of the Company and this kind of engagement is important to ensure we can identify, prioritise and address material matters and be adopted in our business strategies. The business and functional units are empowered to interact with their respective stakeholders on their chosen platforms. All issues raised by stakeholders are brought to the attention of the Management or Management Meetings by the respective business and functional units. Ongoing engagements where applicable are carried out regularly as they are integral to our business development, relationships with stakeholders and commitment to sustainability.

Stakeholder Engagement GRI - [102-40, 102-43, 102-44] Our stakeholders are a vital part of our business. In seeking to better understand the material issues that an ect our stakeholders, we are constantly working to improve our engagement processes. By addressing the interests of our stakeholders through appropriate engagement platforms, we can evolve our strategies to meet their expectations and focus our reporting on issues that are relevant to them. Our key stakeholders are outlined in the table below, along with the forms of engagement and key topics of interest that we seek to address.

Stakeholder Group Engagement Approach Engagement Focus & Objectives Frequency & Initiative Consultation and monitoring Provision of free consultation, and On going special consultation for those identified to be in need. Set targets for Sales Team Yearly review by management Yearly Employees for the performance capture on attendance, deliver target meet, achievement level. Safety/Tidiness and Cleanliness Daily monitoring to ensure Daily Committee at factories factories are clean and free from hazardous mess. 1. Request for New Proposal 1. Request for competitive quotation Monthly 2. Supplier Evaluations and and proposal for all materials Suppliers/ selection and services in order to maximise Subcontractors 3. Periodic review for new company profit. & Business purchases 2. Evaluate supplier performance Partners 4. Training and workshops e.g. delivery on-time, as quantity and quality required. 3. Procurement process, terms and practices. Regulators and Compliance with local authorities, Comply with all the requirements. Scheduler visits (almost Government governmental bodies/agencies. every months) Authorities CSR programme – external Social requirements and specific At least once a year Community feedback on programme. CSR programme - internal Social requirements and specific At least once quarterly feedback on programme. Media Immediate notification ofNew developments and updates for Ongoing/ Quarterly/ financial releases and material public knowledge and awareness. Annually developments RESINTECH BERHAD Registration No. 199501012460 (341662-X) 19 ANNUAL REPORT 2021

Sustainability Statement (cont’d)

Immediate notification of1. Proactively engage with the Quarterly financial releases and material investment community through Shareholders & developments multiple channels such as: the investment a. Announcements on Bursa community Securities’ website. b. Annual General Meetings. c. Website. 2. Financial literacy and investor education. 3. Short and long-term business goals and performance. 4. Revenue and Earnings performance. 5. Business continuity. Environment Usage and monitoring of energy On going 1. Implementation of and water solar renewable Recycling process energy. 2. Rainwater system. 3. Reduce, reuse, recycle. Economic Business growth On going 1. Monitoring business Cost optimisation growth and monthly meeting to review. 2. Continuous study of costing.

4. PRIORITISATION OF MATERIAL SUSTAINABILITY MATTERS Resintech has undertaken a stakeholder prioritisation and engagement process to engage with its stakeholders. These include ongoing efforts to engage with stakeholders in the usual course of business through the day-to-day operations, as well as specific engagements carried out to seek stakeholders’ feedback. The outcome of these engagements was considered in the course of the Company’s materiality assessment. 5. PROCESS REVIEW The materiality process is undertaken as a key component of the Resintech journey towards identifying the material sustainability matters. The CSC has reviewed and approved the processes and outcome of the materiality process including the Company’s materiality which guides the Company in addressing and managing its material sustainability matters in its business operations. 6. VALIDATION The validated data from the management is provided to the external consultant to review the sustainability activities and to prepare the statement accordingly.

KEYS OF SUSTAINABILITY This section aims to provide insights on the Group’s sustainability commitments and practices across the three key areas of economic, environmental and social undertaken by our key business divisions.

Continuously growing our manufacturing operations to As a responsible Provide a safe, conducive create long-term value for our manufacturer, the Group and friendly working stakeholders, furnish customers constantly seeks for environment for our people

with high quality products and effective and efficient Social where employees can develop mutually beneficial management of resources, grow their career and at business relations with our and in support of green the same time, give back Economic suppliers to ensure continuous environment. to society through social support and supply of our raw activities that benefit the materials. We support local local community.

suppliers through purchases of Environmental local products and services. RESINTECH BERHAD 20 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Sustainability Statement (cont’d)

ECONOMICS GRI - [103-1, 103-2, 103-3, 201-1] Economic scenario remains as our core element based on the market condition of the global influence. The Company has taken a great level of measures to identify the critical risk which influence the strategy of the Company. By taking indispensable steps with the senior management and the board, we foresee to mitigate the risk elements. We also conduct periodic monthly and ad-hoc meetings with the head of department’s on the business aspects to cater the market needs. Our commitment to business is focus on strong corporate governance and prudent management in view of challenging internal and external environment. We strive to achieve by enforcing on the following aspects. Details of the below practices are elaborated in our website:-

• Board Diversity Policy • Board Charter • Code of Ethics and Conduct • Whistle Blowing Policy • Anti-Bribery and Corruption Policy • Succession Planning Policy • Procedures for Appointment of Directors and Senior Management • Audit Committee - Terms of Reference • Nomination Committee - Terms of Reference • Remuneration Committee - Terms of Reference • Risk Management Committee – Terms of Reference

Overall, there are three key themes driving Resintech efforts to operate in a sustainable manner. The material issues corresponding to these key themes are depicted as follows: i. Ensuring Sustainable Growth • Financial sustainability • Corporate governance • Compliance with regulatory authorities • Occupational health and safety • Service quality ii. Minimising Environmental Impact • Waste management • Energy conservation • Water management • Material sourcing & supply chain management iii. Contributing to Better Society • Community engagement • Talent attraction, retention and development

A) GROUP OVERVIEW Resintech is a company listed on Bursa Malaysia Securities Berhad in December 2006. The Group’s main business is in the manufacturing and trading of a diversified plastics building materials, which accounts to most of its revenues and profits. Earnings from other smaller divisions are insignificant.

B) FINANCIAL OVERVIEW The Group’s financial overview is elaborated in “Management Discussion and Analysis” section of this Annual report.

C) PRICE AND FOREIGN CURRENCY RISK The input of the Group’s manufacturing activities is depending on the price of crude oil as well as the movements in US Dollar. Crude oil price tends to be cyclical and subject to fluctuations. The Group is exposed to foreign currency risk on such transactions and balances that are denominated in US Dollar. Unfavorable fluctuations will affect our cost competitiveness, financial results and financial commitments. The foreign currency risk is partially managed though a natural hedge between the sales and purchases in the same currencies, and remaining is being monitored closely on an ongoing basis to ensure that the net exposure is at an acceptable level. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 21 ANNUAL REPORT 2021

Sustainability Statement (cont’d)

D) DIVIDEND POLICY The Company does not have a fixed long term dividend policy. In deciding the dividend payout for each year, the Board considers the strength of cash flow from operating activities, the cash outlay commitments and the future plans of the Group.

E) PROSPECT MOVING FORWARD The Group’s prospects can be found in the Chairman’s Statement.

F) SUSTAINABILITY POLICY (SP) The Board of Directors of Resintech believes that introducing SP considerations in its business decisions is essential foundation to achieve long term business success besides creating value for all its stakeholders, as well as a strategic approach to support and empower communities, encourage social inclusivity and improve the environments. The balancing of SP with the interest of stakeholders is essential to enhancing investor perception and public trust that works towards value enhancement for stakeholders in the long run. Resintech also believes that as a responsible corporate citizen, one would have an obligation in making the earth a better place to live in through responsible investing, besides weighing on an appropriate risk-return profile for its investments.

With this Resintech incorporated its principles of sustainability in its SP Resintech commitment towards environmental, social and corporate governance issues is strong and hands-on and is also an important step towards a more sustainable society in the long run. Resintech environmental and social policy takes serious account of the impact of its operations on the local community and seeks to ensure that potentially harmful occupational health and safety, environmental and social effects are properly assessed, addressed and monitored. Resintech corporate governance policy, focusing on compliance policy, the standing and integrity of Resintech investee companies, their shareholders, board of directors and also their employees. In this dynamic business world, this SP and practices will be reviewed from time to time so as to ensure its relevance. Resintech objective is to ensure all business conducts adhere to SP that serves as an ethical foundation to achieve long term business success for Resintech.

G) OUR SUPPLY CHAIN GRI - [102-9] Sustainability in the supply chain has been increasingly recognised as an important aspect in corporate responsibility. In making responsible sourcing decisions, Resintech has started to explore putting in place an appropriate approach to consider suppliers’ economic, environmental and social (“EES”) credentials in the lifecycle of the supply chain. In the emplacement of new suppliers, the Group has begun to incorporate sustainability – related criteria in assessing the suppliers’ business practices such as workplace relations and, occupational health and safety. For existing vendors and suppliers, the Group in the process of sending out surveys to selected suppliers for them to share and affirm their commitment towards EES. Resintech should improve on managing sustainability in supply chain, and will continue to collaborate with its suppliers and vendors to work towards enhanced sustainability practices with respect to EES matters.

H) SAFETY AND HEALTH GRI - [403] It is one of our key priorities to maintain a safe and healthy work environment for our workforce. Our Safety and Health Policy goes beyond the requirements of the Occupational Safety and Health Act 1994 to ensure that our talent work under safe conditions. Our operations are governed by an internally established occupational safety, health and environmental management system.

I) BUSINESS CONDUCT We strive to be environmentally responsible and encourage all our stakeholders to do the same. Consequently, they need to use sustainable materials whenever they are cost-effective.

J) COMMITMENT TO QUALITY Resintech has the policies, procedures and best practices in place to deliver products and services of outstanding quality. Furthermore, regular reviews, process improvements and quality control assessments are in place to ensure that our processes remain in compliance and are continually to be enhanced. RESINTECH BERHAD 22 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Sustainability Statement (cont’d)

K) CUSTOMER SATISFACTION Customer satisfaction and engagement was identified as one of the most important material issues in the marketplace dimension across all our divisions. Knowing exactly what customers are expected from us for improvement our bottom line and strengthens our brands and reputation in the long term. We conduct half yearly customer satisfaction surveys. The feedback generated provides insights into customer expectations that enable us to develop and deliver better products and services. The Group is unwavering in meeting its standards of excellence by ensuring the delivery of quality in project execution and meeting all customer deliverables as detailed in our contracts. We aspired towards full realization of ISO standards (ISO 9001) throughout our operations and the application of established quality practices and policies. The Group is committed to improving compliance with product requirements and the effectiveness of its Quality Management System on a continuing basis. The Group Procurement Department ensures diversification of the supply chain to mitigate the risk of disruption to our operations. The Group’s operations maintain at least one primary and one secondary supplier for raw material, consumables and spare parts, wherever possible.

L) PROCUREMENT PRACTICES Supplier and sub-contractors are selected through selection and bidding processes. Resintech has formalised procurement operating procedures to support the procurement process in the Group emphasising on satisfactory quality of products and services with competitive pricing. The selection of sub-contractors and suppliers are based on appropriate synergy of technical, financial, pricing and quality of service criterions.

M) RISK MANAGEMENT An integral part of good corporate governance, a comprehensive Risk Management framework enables Resintech to proactive identify, communicate, manage risks and exposures in an integrated, systematic and consistent manner. In driving risk awareness, decision-making and business processes are put through prudent risk assessment. Fraud and corruption risk had been identified as material to ensure sustainability.

ENVIRONMENT SUSTAINABILITY GRI - [103-1, 103-2, 103-3] The Company is mindful of the environmental impact of our work and addresses them in business decision-making. The industries we are in have extensive direct and indirect impacts on the environment and aligning ourselves with the goals of sustainability of sustainable development. We take responsibility to managing our environmental impacts seriously. Employees and business partners must demonstrate a commitment to comply with environmental legislation, regulations as well as the Company’s Policy. Over the years, the Company has taken preventive measures to manage its waste from productions to avoid pollutions. The Company also has installed solar panel embarking on usage of renewable energy.

A. ENERGY AND WATER MANAGEMENT & CONSUMPTION As the Company with sustainable commitment, we understand that the energy management is essential for combating climate change and for lowering an organisation’s overall environmental footprint. Our electricity supply is from the local supply, and we aim to minimize the energy usage in our head office by implementing the following efforts: • A lighting schedule across key areas in our head office to switch off lights during certain hours of less consume; • Maintenance and replacement of electrical equipment and light fittings to maximize energy efficiency; • Organise campaign to remind all staff to switch off the lighting, water dispenser, air conditioning; or • To switch-off other electrical appliances in the office and pantry when they are not required. We promote the water saving practices among employees and adopting water-efficient technologies and equipment wherever possible. The water consumed at our head office is obtained from the municipal water supply. We have taken small steps to control the water usage to be in line with the sustainability efforts, namely: • Slow the flow. Adjusting water pressure/outflow for toilets, wash basins, pantry, throughout our head office building. • Seek the Leak. Conducting inspection and fixing leaks immediately, where possible. The Electricity usage below is presented for the Head Office and Plants. The data presented below is representative of our first attempt to consolidate the water and electricity consumption statistics. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 23 ANNUAL REPORT 2021

Sustainability Statement (cont’d)

Water Management & Consumption GRI - [303-5, 306 -2] Water is an essential to life because of the fact that it sustains everything on the Earth. However, the key issue of water depletion is addressed to each party and hence we take the topic seriously by implementing the related policy. We promote the water saving practices among employees and adopting water-efficient technologies and equipment wherever possible. The water consumed at our head office is obtained from the municipal water supply. The water consumption has reduced from Year 2020 to Year 2021. We have taken small steps to control the water usage to be in line with the sustainability efforts, namely: • Slow the flow. Adjusting water pressure/ outflow for toilets, wash basins, pantry, throughout our head office building. • Seek the Leak. Conducting inspection and fixing leaks immediately, where possible. The water usage below is presented for the Head Office - Administration and Group.

Energy Management & Consumption GRI – [302-1, 302-3, 302-4] Momentum is building in the fight against climate change. Thus, the Company has transformed the use of conventional energy source to a more sustainable energy. The Company has started using solar energy on running their daily activities for the internal usage, which aligned with the 7th SDGs goal of affordable and clean energy. This can greatly reduce the dependence on non-renewable energy from fossil fuels as well as lessen the impact of greenhouse gases emission (“GHG”) to the planet. We understand that the energy management is essential for combating climate change and for lowering an organisation’s overall environmental footprint. Our electricity supply is from the local supply and we aim to minimize the energy usage in our head office by implementing the following efforts:

RESINTECH BERHAD 24 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Sustainability Statement (cont’d)

Green Environment The Green Policy also includes the practice of harvesting rain water for general cleaning and gardening purpose to help reduce the wastage of precious processed water. In the offices, the employees are taught to segregate waste into recyclable and non-recyclable waste for disposal.

Vehicle Emission GRI - [305-5] Vehicle emissions are key material issues in the industry as it has a direct influence on the GHG level in the atmosphere. Resintech ensures that the air quality is protected and continues to explore strategies to improve this aspect. As a whole the vehicles are emphasised to undergo scheduled maintenance, testing and repair works on a periodic basis.

B. WASTE MANAGEMENT EFFLUENT TREATMENT GRI - [306-1] Recycling Being in the manufacturing industry previously, the Company ensures through the recycling process in the manufacturing operation and at the same time promoting a circular economy, the Company minimizes the quantity of disposable toxic wastes generated from its operations. In the manufacturing sector we work on the recycling process of critical materials. Resintech acknowledges that the environmental impact of paper usage is significant. The Company’s approach to waste management is to avoid unnecessary paper consumption and waste generation, where possible and appropriate, to reduce the wastage. Resintech has always looked at ways to reduce paper usage, and thus less waste. Generally, the Company practices the following on the paper management:

By encouraging avoiding printing, photocopying and emphasizing on paperless and electronic mode. Reducing Paper

By printing on the other side of the printed papers. In addition to this, practice double sided printing or reduce the size to have the best economical usage of papers. Reusing

Recycle the papers by having proper recycling bins. Recycle RESINTECH BERHAD Registration No. 199501012460 (341662-X) 25 ANNUAL REPORT 2021

Sustainability Statement (cont’d)

C. STORAGE AND COLLECTION OF RECYCLABLES Resintech also has come out with initiative for storage and collection of wastages and recyclables. This initiative objective includes: • To provide dedicated area and storage for collection of non-hazardous material for recycling; • To facilitate the reduction of scheduled waste generated that is hauled and disposed to licensed disposal companies; and • To designate a dedicated area where on-site sorted waste materials can be stored in separate skids for collection facilities. Table below shows the types of items recycled/ reused and disposed in construction.

OIL STEEL

PAPER PLASTIC

Flooding To prevent flooding from causing inconvenience to the neighborhood within the vicinity of its operation, proper measures are taken to ensure that drainage system around the factory are frequently cleared of debris and silting that may prevent unnecessary water flow or flooding during heavy rain.

SOCIAL GRI – [102-7, 102-8, 405-1] The Company believes that contributing to the local community is not just something out of choice but is a vital part of our corporate existence. We strongly believe in giving back and improving the well-being of our society through impactful initiatives. The Company has taken initiatives to engage with the community and with charities on our journey of sustainability. Internally, Occupational Health and Safety is important to us. All our employees are covered for outpatient healthcare services, inpatient hospitalisation treatments and medical services under the Company’s Personal Accident policy. The following sustainability graphs are illustrated based on the social segment in the organisation. RESINTECH BERHAD 26 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Sustainability Statement (cont’d)

Being sustainable encompasses an appreciation of the symbiotic relationship between ourselves and our communities. As such, playing an active role in engaging and giving back to our communities forms an integral part of the Company’s sustainability. To appreciate and giving back to the society, it starts from the employees. The following efforts were emphasized under the social aspect:

Safe, Healthy and Conducive Work Environment GRI - [416-1, 403-1, 403-2, 403-4, 403-5, 403-9] The Company places great emphasis on safety and health aspects of its employees while maintaining a comfortable and conducive work environment through the following initiatives: • The setting up of Occupational Safety and Health Committee to initiate various health and safety programmes to enhance employees’ awareness in workplace; • Ensuring a safe workplace with 24 hours’ security surveillance; • Constant updating and promoting the awareness of safety precautions and health issues; • Employees are required to wear safety gears at workplace to minimise work injuries at the construction site; and • Maintaining a workplace that is free from theft, violence, harassment, intimidation and other unsafe and disruptive influence due to internal and external conditions. Training and Development The Company recognises the importance of human capital development to meet challenges. It continues to build and upgrade its human resources to ensure that they can realize their full potential.

Contributing to the Well-Being of Our Communities Being sustainable encompasses an appreciation of the symbiotic relationship between ourselves and our communities. As such, playing an active role in engaging and giving back to our communities forms an integral aspect. The Company is committed and extend financial help and other assistance in kinds for charitable organisations, welfare homes, schools and religious bodies as and when the need arises.

LOOKING AHEAD GRI - [102-12] It was a tough time during COVID-19 pandemic outbreak in 2020, in which almost all of the business operation has been affected adversely until todate. However, sustainability always plays a fundamental role in driving Resintech value creation process, which enable the development of a deep understanding of value drivers that are crucial in supporting business resilience and creating positive impacts on our stakeholders. Resintech aspires and committed to the sustainability journey as a business partner, an employer, environmental curator and a value creator for shareholders. By rational and acting sustainably, we will deliver good quality and better customer service and enhances the financial results and position of the company for a strong future. This is Resintech’s 3rd Sustainability Report, and although we have made some development towards formalising sustainability within our business, we recognise that we still have room for enhancement, both in terms of initiatives undertaken and our reporting structure. Accelerating in the year 2022, we will enhance the materiality factors and metrics and targets to measure issues that are material to our business and move towards benchmarking our progress against international standards of reporting. As sustainability remains as an integral part of our business, we will continue to strengthen sustainability initiatives across our value chain by implementing new strategies and initiatives, promote healthy lifestyles, exceed customers’ satisfaction, reduce our environmental footprint, and protect vulnerable workers and communities. This Statement has been approved by the Board and is current as at 17 August 2021. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 27 ANNUAL REPORT 2021

AUDIT COMMITTEE REPORT

OBJECTIVE

The objective of the Audit Committee (“AC”) is to assist the Board of Directors (“the Board”) in fulfilling its fiduciary responsibilities relating to internal controls, financial and accounting records and policies as well as integrity in financial reporting practices of the Company and its subsidiaries (“the Group”).

COMPOSITION AND MEETINGS ATTENDANCE

During the financial year ended 31 March 2021, a total of five (5) AC meetings were conducted and the members of the AC and details of their attendance of the meetings during the financial year are as follows:

Designation Name of AC Members Attendance of meetings Chairman: Kok Wee Wah 5/5 Independent Non-Executive Director Members: Dato’ Razif Ratha Bin Abdullah 5/5 Independent Non-Executive Director Datuk Hj. Abdul Fatah Bin Hj. Iskandar 5/5 Senior Independent Non-Executive Director

The Independent Non-Executive Directors satisfied the test of independence under the Main Market Listing Requirements (“Listing Requirements”) of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) and also meet the requirements of the Malaysian Code on Corporate Governance 2017.

The Chairman of the AC, Mr Kok Wee Wah is an Independent Non-Executive Director. In this respect, the Company complies with Paragraph 15.10 of the Listing Requirements. In addition, the Chairman, being a member of the Malaysian Institute of Accountants (MIA), fulfils the requirement of Paragraph 15.09(1)(c) of the Listing Requirements.

The performance of the AC and each of its members were reviewed by the Board on 17 August 2021. The Board was satisfied that the AC members have discharged their functions, duties and responsibilities in accordance with the Terms of Reference of the AC during the financial year under review thereby supporting the Board in ensuring appropriate corporate governance standards within the Group.

TERMS OF REFERENCE

The Terms of Reference of the AC is available on the corporate website of the Company at www.resintechmalaysia.my. RESINTECH BERHAD 28 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Audit Committee Report (cont’d)

SUMMARY OF ACTIVITIES OF THE AC

The following activities were undertaken by the AC during the financial year ended 31 March 2021:

a) Financial Reporting

• Reviewed the unaudited quarterly results of the Company and the Group including announcements, going concern of the Company and the Group, clarifications or explanations were sought from the Management in particular on any significant changes to the items or transactions that would affect the financial position of the Company and the Group before the AC recommends to the Board for their approval and subsequent release to Bursa Malaysia. • Reviewed the unaudited quarterly results and financial statements to ensure that the financial reporting and disclosures are presented in a true and fair view of the Group’s financial performance in accordance with the applicable Malaysian Financial Reporting Standards (MFRS) and International Accounting Standards as well as the applicable disclosure provisions of the Listing Requirements. • Prior to the issuance of the finalised audited financial statements of the Company and the Group, the AC had reviewed the audit status update presented by the External Auditors comprising amongst others, areas of audit emphasis, audit materiality, significant adjustments resulting from the audit, going concern assumption and impairment arising from the audit during the year under review. • Reviewed any changes in the implementation of major accounting policies and practices to the Group.

b) External Audit

• Reviewed the audit plan of the External Auditors in terms of their scope of audit, methodology and timetable, audit materiality, areas of focus prior to the commencement of their annual audit; • Reviewed and discussed the External Auditors’ audit report and areas of concern highlighted in the management letter (i.e. revenue recognition, going concern, property, plant and equipment, recoverability of receivables and proper measurement and recognition of liabilities), including management’s response to the concerns raised by the External Auditors, and evaluation of the system of internal controls; • Met the External Auditors without the presence of Management to further discuss matters arising from audit; • Considered the re-appointment of External Auditors and their audit fees, after taking into consideration of the independence and objectivity of the External Auditors vide a written assurance of independence and the cost effectiveness of their audit, before recommending to the Board for approval.

c) Internal Audit

• The AC reviewed and approved the internal audit plan, methodology, functions and resources to ensure adequate audit scope and coverage of the key risk areas of business operations of the Group are carried out. • The AC reviewed and discussed the internal audit reports which outlined the recommendations towards correcting areas of weaknesses and ensured that there were Management action plans established for the implementation of the Internal Auditors’ recommendations. Management was invited to attend the AC meeting to provide clarification on specific issues raised in the internal auditor reports. Summary of internal audit reports presented to the AC provided status updates for management action plans to address the findings reported in the previous audit cycles. • The Internal Auditors monitored the implementation of the Management’s action plan on outstanding issues through follow-up reports to ensure all audit findings were adequately dealt with by the Management. • The AC reviewed the adequacy of the scope, functions and competency of the internal audit function, and the results of the internal audit process to ensure the appropriate actions are taken of the recommendations of the internal audit function. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 29 ANNUAL REPORT 2021

Audit Committee Report (cont’d)

SUMMARY OF ACTIVITIES OF THE AC (cont’d)

The following activities were undertaken by the AC during the financial year ended 31 March 2021: (cont’d) d) Related Party Transactions

• The AC reviewed the system for identifying, monitoring and disclosing related party transactions for the Group and to ensure that related party transactions are not to the detriment of minority shareholders of the Company. • The report of Related Party Transactions of the Group was tabled and reviewed by the AC at every quarterly meeting. e) Annual Reporting

• The AC reviewed and recommended the Statement on Report of the AC and Statement on Risk Management and Internal Control for inclusion in the Annual Report for the financial year ended 31 March 2021 to the Board for approval. • The AC reviewed the Terms of Reference and there is no necessary amendment needed at this junction.

INTERNAL AUDIT FUNCTION AND ACTIVITIES

The Company recognized that an internal audit function is essential to ensuring the effectiveness of the Group’s systems of internal control and is an integral part of the risk management process.

Appointment of Internal Auditors

The Group’s internal audit function (“IAF”) on the system of internal controls was outsourced to an independent professional firm, Smart Focus Group, which adopts internal audit standards and best practices based on the International Professional Practices Framework, endorsed by the Institute of Internal Auditors Malaysia. The IAF team is headed by an Associate Director – Advisory, who is a member of the Malaysian Institute of Internal Auditors and was assisted by three staff during the financial year under review.

None of the internal audit personnel has any relationship or conflict of interest that could impair their objectivity and independence in conducting their internal audit functions. IAF provides independent assessment on the effectiveness and efficiency of internal controls utilizing a global audit methodology and tool to support the corporate governance framework and an efficient and effective risk management to provide assurance to the Audit Committee.

The principal role of the internal auditors is to undertake independent, regular and systematic reviews of the systems of internal control to provide reasonable assurance that such systems continue to operate satisfactorily and effectively.

The internal auditors carry out audit assignments based on an audit plan that was reviewed and approved by the AC. The reports of the audits undertaken were forwarded to the management for attention and necessary action and presented to the AC for deliberation and approval.

The outsourced internal auditors report directly to the AC. The terms of engagement of the outsourced internal auditors is governed by a formal engagement letter reviewed by the AC and includes engagement objectives and scope, reporting structure, internal audit methodology, independence and objectivity, authorities and responsibilities. RESINTECH BERHAD 30 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Audit Committee Report (cont’d)

INTERNAL AUDIT FUNCTION AND ACTIVITIES (cont’d)

Summary of Internal Audit Works

The activities carried out by the internal auditors during the financial year ended 31 March 2021 include:

• Developed the internal audit plan for year 2020/2021; • issuance of reports on the results of the internal audit review, identifying key weaknesses with suggested recommendations to the management for further action; and • attended AC meetings to table and discuss the internal audit reports.

The management was made responsible for ensuring that corrective actions where necessary were taken within the required timeframes.

Total costs incurred

The cost incurred for the internal audit function in respect of the financial year ended 31 March 2021 amounted to RM21,000 (FY2020: RM21,000).

Further details of the Internal Audit Function are set out in the Statement on Risk Management and Internal Control on pages 50 and 51 of this Annual Report. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 31 ANNUAL REPORT 2021

CORPORATE GOVERNANCE OVERVIEW STATEMENT

The Board presents this Corporate Governance Overview Statement to provide the stakeholders, including shareholders with an overview of the application of the following principles set out in the Malaysian Code on Corporate Governance 2017 (“MCCG”) for the financial year ended 31 March 2021, its current key focus areas and future priorities in relation to corporate governance in consideration of the Group’s structure, business environment and industry practices:

• Principle A: Board Leadership and Effectiveness; • Principle B: Effective Audit and Risk Management; and • Principle C: Integrity in Corporate Reporting and Meaningful Relationship with Stakeholders.

This statement is prepared in compliance with the Listing Requirements of Bursa Securities and it is complemented with a Corporate Governance Report in a prescribed format pursuant to Paragraph 15.25 of the Listing Requirements of Bursa Securities which includes the application of the practices of the MCCG. The Corporate Governance Report is announced together with the announcement of the Company’s Annual Report on Bursa Securities’ website and it is also available on the Company’s website at www.resintechmalaysia.my.

PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS

Part I – Board Responsibilities

Intended Outcome 1.0 Every company is headed by a board, which assumes responsibility for the company’s leadership and is collectively responsible for meeting the objectives and goals of the company.

The Duties and Responsibilities of the Board

The Board is collectively responsible to the Company’s shareholders for the long-term success of the Group via its overall strategic direction, its values and governance. The Board is led by experienced and knowledgeable Board members who provide the Company with the core competencies and leadership necessary for the Group to meet its business objectives and goals.

All members of the Board are aware of their responsibility to take decisions objectively which promote the success of the Group for the benefits of shareholders and other stakeholders.

The Board is responsible for formulating and reviewing the strategic plans and key policies of the Company, shaping the strategic direction of the Company and charting the course of the Group’s business operations whilst providing effective oversight of Management’s performance, risk assessment and controls over business operations.

The Board has discharged its responsibilities in the best interests of the Company. The following are among the key responsibilities of the Board: a) Reviewing and adopting the Company’s strategic plans; b) Overseeing the conduct of the Company’s business; c) Identifying principal risks and ensuring the implementation of appropriate internal controls and mitigation measures; d) Succession Planning; e) Overseeing the development and implementation of a shareholder communications policy for the Company; and f) Reviewing the adequacy and integrity of management information and internal control system of the Company. RESINTECH BERHAD 32 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part I – Board Responsibilities (cont’d)

The Duties and Responsibilities of the Board (cont’d)

The Board formalises the Company’s strategies on promoting sustainability. Discussion was held amongst the Directors to explore future investment and expansion of business in other countries.

The Board promotes good corporate governance in the application of sustainability practices throughout the Company, the benefits of which are believed to translate into better corporate performance. Accordingly, the Company takes cognisance of the global environmental, social, governance and sustainability agenda.

Establishing clear roles and responsibilities of the Board

The Chairman leads the vision and strategic planning of the Group at the Board level, he is primarily responsible to provide leadership to the Board and ensure the Board perform their responsibilities effectively. He acts as a facilitator at Board meetings to ensure no domination of discussion of Board and encourage participation of all Directors deliberated at all Board meetings.

Executive Directors are responsible for the implementation of the policies laid down and executive decision-making, he implements and execute the strategies, policies and decision adopted by the Board and oversees the operations and business development of the Group.

The Non-Executive Directors fulfil a fundamental role in instilling high standard of corporate governance and accountability by providing unbiased and independent views and advice on management proposals.

Separation of the positions of the Chairman and Managing Director

The distinct and separate roles of the Chairman, who heads the Board, and Managing Director (“MD”), who leads the Executive Directors and Management, is to enhance their respective independence, accountability and responsibility, also ensure a balance of power and authority, which in turn ensure that no one individual has unfettered decision-making power.

While the Chairman is primarily responsible to provide leadership to the Board, instil good corporate governance practices and to ensure the effective functioning of the Board, the MD, with the assistance of the Executive Directors and Senior Management, has the responsibility to oversee the overall operations of the Group, including the implementation of strategies and policies. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 33 ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part I – Board Responsibilities (cont’d)

Separation of the positions of the Chairman and Managing Director (cont’d)

Separation in the role of the Chairman and the MD is imperative as both roles have different expectations and serve distinct primary audiences.

The MD is responsible for the day-to-day management of the business and operations of the Group in respect of both its regulatory and commercial functions. He is supported by Management and the Executive Directors. Management’s performance, under the leadership of the MD, is assessed by the Board through monitoring the success in delivering the approved targets and business plans against the performance of the Group.

The Board has in place a strategy planning process, whereby the MD presents to the Board its recommended strategy annually, together with the proposed business plans for the ensuing year for the Board’s review and approval. The Board will deliberate both Management’s and its own perspectives, and challenge Management’s views and assumptions to ensure the best outcome.

Roles and Responsibilities of the Company Secretary

The Board in delivering their duties and responsibilities, is supported by suitably qualified and competent Company Secretaries.

The Company Secretaries were entrusted to record the Board’s deliberations, in terms of issues discussed, and the conclusions and the minutes of the previous Board meeting is distributed to the Directors prior to the Board meeting for their perusal before confirmation of the minutes at the commencement of the following Board meeting. The Company Secretaries also ensure that there is good information flow within the Board and between the Board, Board Committees and Management.

The Board is regularly updated by the Company Secretaries on new changes to relevant legislation and Bursa Securities’ Listing Requirements.

All Directors have direct access to the advice and services of the Company Secretaries in discharging their duties effectively.

Board of Directors’ Meetings

The Board and Committee meetings are scheduled in advance before the commencement of the new financial year to enable Directors to plan ahead and accommodate the years’ meetings into their schedules. The Board requires all members devote sufficient time to effectively discharge their duties and to endeavour to attend meetings to the best of their ability.

To ensure the Board receives information on a timely manner, the Board papers for meetings will be circulated to the Board at least seven days before the meeting. This provides the Directors with sufficient time to go through the meeting papers and to obtain further explanation, where necessary, in order to be fully informed of the matters to be discussed at the meeting.

All issues and decisions made during the Board meetings are properly recorded and thereafter circulated to the Board for comments before minutes of proceedings are finalised and tabled to the Board for confirmation. The Company Secretary organises and attends all Board meetings to ensure proper recording of the proceedings.

The Directors, in exercising their duties, have full and unrestricted access to any information pertaining to the Company and direct access to senior management executives and professional advice and services from the Company Secretary. Where necessary, the Board may engage external independent advisors at the Group’s expense on specialised issues to enable them to discharge their duties proficiently. RESINTECH BERHAD 34 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part I – Board Responsibilities (cont’d)

Board of Directors’ Meetings (cont’d)

The Board meets at least five (5) times a year or more when circumstance require. Where appropriate, decisions are also made by way of circular resolutions in between scheduled meetings during the financial year.

No. of Meetings attended in Name Designation FYE 31 March 2021 Datuk Hj. Abdul Fatah Chairman/Senior Independent 5/5 Bin Hj. Iskandar Non-Executive Director Dato’ Dr. Teh Kim Poo Managing Director 4/5 Kok Wee Wah Independent Non-Executive Director 5/5 Dato’ Hj. Razif Ratha Independent Non-Executive Director 5/5 Bin Abdullah Teh Leng Kang Executive Director 5/5 Wei Hwei Hong Executive Director 5/5 Datin Gan Jew Executive Director 4/5

The Board has also agreed for the 50% minimum attendance requirement to be adopted for Board and Board Committees. Overall, all Committee members complied with the attendance threshold.

In terms of time commitment, all members of the Board currently hold not more than five (5) directorships in listed companies in line with the maximum limit as set out under Paragraph 15.06 of the MMLR. The Board is satisfied that each member of the Board has spent sufficient time on all Board matters, as evidenced by their attendance record at the Board and Board Committees meetings, hence ensuring a timely and orderly decision-making process for the Group.

Intended Outcome 2.0 There is demarcation of responsibilities between the board, board committees and management. There is clarity in the authority of the board, its committees and individual directors.

Board Charter and Board Committees

The Board is guided by a Board Charter for the effective discharge of its fiduciary duties. The Board Charter serves to ensure that all Board members acting on the Group’s behalf are aware of their expanding roles and responsibilities. It sets out the specific and respective roles and responsibilities to be discharged by the Board and Board Committees members collectively and individually. It also regulates on how the Board conducts business in accordance with Corporate Governance principles. The Board Charter is reviewed regularly to ensure that it complies with the best practices and regulation.

The Board reviews the Board Charter periodically to ensure its relevance and effectiveness. The last review of the Board Charter conducted by the Board was on 17 August 2021. It is published on the Company’s website at www. resintechmalaysia.my. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 35 ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part I – Board Responsibilities (cont’d)

Board Charter and Board Committees (cont’d)

The Board has established four (4) Board Committees, namely Audit Committee, Nomination Committee, Risk Management Committee and Remuneration Committee that are entrusted with specific responsibilities to oversee the Group’s affairs, with authority to act on behalf of the Board in accordance with their respective Terms of Reference.

The Board had delegated the management of the Group to MD, Executive Directors and management team. The MD, Executive Directors are responsible for implementing the policies and decisions of the Board, overseeing day to day operations as well as coordinating the development and implementation of business and corporate strategies.

The delegation of authority to the Committees and Management enables the Board to achieve operational efficiency, by empowering each Committee to review, report and make recommendations to the Board on matters relevant to their roles and responsibilities. These Committees have the authority to examine particular issues and report to the Board with their recommendations. However, the ultimate responsibility for the final decision on all matters lies with the Board.

Intended Outcome 3.0 The board is committed to promoting good business conduct and maintaining a healthy corporate culture that engenders integrity, transparency and fairness.

The board, management, employees and other stakeholders are clear on what is considered acceptable behaviour and practice in the Company.

Code of Ethics and Conduct

The Board is guided by the Code of Ethics and Conduct for Directors and Employees in discharging its oversight role effectively. The Codes of Conduct require all Directors to observe high ethical business standards, and to apply these values to all aspects of the Group’s business and professional practice and act in good faith in the best interests of the Group and its shareholders. The Code of Ethics and Conduct was published on the corporate website.

Whistleblowing Policy

In addition, the Company’s Whistleblowing Policy as published in the Company’s website fosters an environment where integrity and ethical behaviour are maintained and any illegal or improper action and/or wrong doing in the Company may be exposed.

Anti-Bribery & Corruption Policy

The Anti-Bribery & Corruption Policy had been established to provide the Directors, officers, employees and third parties with a guide on how to prevent and detect bribery and corruption. It is our policy to conduct all of our business in an honest and ethical manner, as well as complying with all applicable laws, which include compliance with the Malaysian Anti-Corruption Commission Act 2009 and the Malaysian Anti-Corruption Commission (Amendment) Act 2018 and any of its amendments or reenactments that may be made by the relevant authority from time to time.

We take a zero-tolerance approach to bribery and corruption and are committed to acting professionally, fairly and with integrity in all our business dealings and relationships wherever we operate and implementing and enforcing effective systems to counter bribery. RESINTECH BERHAD 36 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part II - Board Composition

Intended Outcome 4.0 Board decisions are made objectively in the best interests of the company taking into account diverse perspectives and insights.

Board Composition

The Board consisted of four (4) Executive Directors and three (3) Independent Non-Executive Directors. The present composition of the Board complied with the Listing Requirement which stipulates that the minimum requirement for Independent Directors to be on the Board shall be one-third (1/3). The Board took note of the requirement of Practice 4.1 of the MCCG which requires at least half of the Board comprises Independent Directors.

The presence of Independent Non-Executive Directors safeguards the interest of the stakeholders in ensuring that the highest standard of conduct and integrity are maintained. Their role is to ensure that any decision of the Board is deliberated fully and objectively with regard to the long-term interest of all stakeholders and mitigate any potential conflict of interest in relation to related party transactions. The Directors on the Board are fully aware of the pivotal role they play in charting the strategic planning, control and development of the Group, and ultimately the enhancement of long-term shareholder’s value. With its diversity of qualifications, expertise and skills, the Board is of the view that the current composition and size are adequate for the effective discharge of its functions and responsibilities.

However, the Board takes note of the requirement of at least half of the Board comprises Independent Non-Executive Directors and would continue to source and identify suitable candidates to be appointed as the Independent Non-Executive Directors of the Company.

Independent Director and its Tenure

The tenure of an Independent Director should not exceed a cumulative term of nine (9) years. Upon completion of the nine (9) years, an Independent Director may continue to serve the Board subject to the Director’s re-designation as a Non-Independent Non-Executive Director. The Board will seek shareholders’ approval in the event that a Director, who has served in that capacity for more than nine (9) years, retains as an Independent Director. For a Director retained as an Independent Director after the twelfth (12) years, the Board shall seek shareholders’ approval annually through a two-tier voting process as provided under the Code.

Consistent with the recommendation of the MCCG, the Nomination Committee undertook the independence assessment taking into account the Independent Directors’ self-declaration on their compliance with the independence criteria under the Listing Requirements and the ability of the Independent Director to continue bringing independent and objective judgement to the Board deliberations. The Nomination Committee notes that there are no reasons that have come to their attention that the independence status of the Independent Directors are affected.

The Nomination Committee had reviewed and recommended to the Board for Mr. Kok Wee Wah, who has served the Company for the tenure of more than twelfth (12) years to continue to serve as Independent Director of the Company, subject to annual shareholders’ approval through a two-tier voting process as stipulated in the MCCG.

Board Diversity and Senior Management Team

The Board acknowledges the importance of diverse Board and Senior Management and take cognizance of the recommendation of the Code to have at least 30% of female directors. The Board has established the Board Diversity Policy as set out in the Board Charter of the Company, which is available on the Company’s website.

The Group adhered strictly to the practice of non-discrimination of any form, whether based on race, age, religion and gender throughout the organisation, in the selection of Board members and senior management. The Board encourages a dynamic and diverse composition by nurturing suitable and potential candidates equipped with competency, skills, experience, character, time commitment, integrity and other qualities in meeting the future needs of the Company. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 37 ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part II - Board Composition (cont’d)

Board Diversity and Senior Management Team (cont’d)

In the event of a vacancy in the Board arise, the Board, through the Nomination Committee, will consider the female representation when suitable candidates are identified. However, the appointment of a new Board member will not be guided solely by gender but will also take into account the skills-set, experience and knowledge of the candidate. The Company’s prime responsibility in new appointments is always to select the best candidates available. Hence, the normal selection criteria based on an effective blend of competencies, skills, extensive experience and knowledge to strengthen the Board remains a priority.

Thus, the Company does not set any specific target for board diversity but will actively work towards achieving the appropriate board diversity. Currently, the Company has two (2) female Directors, denoting a 29% of women representation on the Board.

Nomination Committee

The Nomination Committee (“NC”) comprises solely Independent Non–Executive Directors and is chaired by Senior Independent Non–Executive Director. The members of the NC and the records of attendance of each NC member at NC meeting(s) held during the financial year 31 March 2021 are as follows:-

No. of Meetings Name Designation Directorship attended Datuk Hj. Abdul Fatah Chairman Senior Independent 1/1 Bin Hj. Iskandar Non-Executive Director Dato’ Hj. Razif Ratha Member Independent 1/1 Bin Abdullah Non-Executive Director Kok Wee Wah Member Independent 1/1 Non-Executive Director

The NC has written terms of reference dealing with its authority and duties which includes the selection and assessment of directors.

The primary responsibilities of the NC are as follows:

(i) to consider and make recommendation to the Board for the appointment of new directors and principal officers for the Company and the Group; (ii) to recommend to the Board on the composition of Board Committees; (iii) to perform annual review on Board’s requirement on skill mix, experience and other relevant qualities including core competencies which Non-Executive Directors should bring to the Board; (iv) to perform annual assessment on the effectiveness of the Board and the Board Committees as a whole; (v) to assess the independence of the Independent Non-Executive Directors annually; (vi) to review the tenure of the Directors pursuant to MCCG; (vii) to recommend the re-election of retiring Directors to the Board at the Annual General Meeting (“AGM”); (viii) to consider succession planning and review the leadership needs of the organisation, both executive and non- executive and what skills and expertise are needed on the Board in the future taking into account of the challenges and opportunities facing by the Company; and (ix) any other such functions as may be delegated by the Board from time to time. RESINTECH BERHAD 38 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part II - Board Composition (cont’d)

Nomination Committee (cont’d)

Meetings of the NC are held as and when required, and at least once a year. The NC carries out the evaluation exercise annually.

During FY2021 and up to the date of the Annual Report, key activities undertaken by the NC are summarised as follows:

(1) Assessed the contribution of each individual Director. (2) Reviewed the Board structure, composition and the balance between Executive Directors, Non-Executive Directors and Independent Directors to ensure that the Board has the appropriate mix of skills and experience including core competencies which Directors should bring to the Board and other qualities to function effectively and efficiently. (3) Assessment and confirmed the independence of the Independent Directors based on the criteria set out in the Listing Requirements of Bursa Securities. (4) Assessed the effectiveness of the Board as a whole, the Committees of the Board. (5) Discussed, reviewed and recommended the re-election of Directors retiring by rotation, namely Dato’ Hj. Razif Ratha Bin Abdullah and Wei Hwei Hong, at the AGM for shareholders’ approval, pursuant to the Constitution of the Company (6) Discussed, reviewed and recommended to the Board the continuation of Independent Directors, namely Mr. Kok Wee Wah, who have served the Company for the tenure of more than of twelve (12) years. (7) Reviewed and assessed the term of office and performance of the AC and each of its members. (8) Reviewed the performance of Chief Financial Officer (“CFO”) of the Company. (9) Assessed Directors’ training needs. Noted the training attended by Directors for disclosure in the Corprate Governance Overview Statement for publication in the Annual Report.

Intended Outcome 5.0 Stakeholders are able to form an opinion on the overall effectiveness of the board and individual directors.

Board Evaluation

The Board reviews and evaluates the performance of the Board, Board Committees and individual Directors on an annual basis. The evaluation comprises a Board Assessment, Board Committee Assessment, an Individual Director Assessment and an Assessment of Independence of Independent Directors.

The assessments are based on specific criteria, covering areas such as the Board structure, operations, roles and responsibilities of the Board, the Board Committees, and the Chairman’s role and responsibilities. For Individual Director Assessment, the assessment criteria include areas of contribution and interaction with peers, quality of input, and understanding of role.

During the annual assessment exercise, the NC members are given performance evaluation forms in respect of individual Directors, the Board and the Board Committees to complete. Sufficient time is given to the NC members to complete the forms and upon completion, the forms are submitted to the Company Secretary for compilation of results of assessment and the summary of which would then be presented to the NC.

Based on the annual assessment conducted, the NC was satisfied with the existing Board composition and concluded that each Director has the requisite competence to serve on the Board and had sufficiently demonstrated their commitment to the Company in terms of time and participation during the year under review, and recommended to the Board the re- election of the retiring Directors at the Company’s forthcoming AGM. All assessments and evaluations carried out by the NC in discharge of its functions were properly documented. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 39 ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part II - Board Composition (cont’d)

Board Evaluation (cont’d)

The NC also undertakes yearly evaluation of the performance of the Chief Financial Officer (“CFO”), whose remuneration is directly linked to performance, based on the score sheet. For this purpose, the performance evaluation for the year 2021 of the CFO was reviewed by the NC on 17 August 2021.

In addition, the AC and each of its members have carried out their duties in accordance with their terms of reference and that the AC members shall continue in office for the next financial year end.

The Board is of the view that its present size and composition is optimal based on the Group’s operations and that it reflects a fair mix of financial, technical and business experiences that are important to the stewardship of the Group.

Board Appointment Process

The Company has in place formal and transparent procedures for the appointment of new Directors i.e. Board Diversity Policy. The Company strictly adhered to the practice of non-discrimination of any form, whether based on race, age, religion and gender throughout the organisation, which includes the selection of Board members. The Board encourages a dynamic and diverse composition by nurturing suitable and potential candidates equipped with competency, skills, experience, character, time commitment, integrity and other qualities in meeting the future needs of the Company.

As for the appointment of Independent Non-Executive Directors, the NC evaluates the ability to discharge such responsibilities before making recommendation to the Board. The Board has entrusted the NC with the responsibility to review candidates for the Board and to determine remuneration packages for these appointments. The NC is also entrusted to the nomination, selection, remuneration and succession policies for the Group.

There is no new appointment of director during the financial year. The Board may consider using independent sources in identifying suitable candidates for appointment of directors in the future via independent search firms, if necessary.

Re-election of Retiring Directors

In accordance with the Company’s Constitution, one third of the Directors (with the exception of the Alternate Director) are subject to retirement by rotation annually and all Directors shall retire from office once at least every three years. The Directors to retire each year are the Directors who have been longest in office since their last appointment on re- election. The Directors appointed during the financial year are subject to retirement at the next AGM held following their appointments in accordance with the Company’s Constitution. All retiring Directors are eligible for re-election. A retiring Director shall retain until the close of the AGM at which he retires.

The Directors, namely Dato’ Hj. Razif Ratha Bin Abdullah and Wei Hwei Hong, who are subject to retirement by rotation pursuant to Clause 97 of the Company’s constitution, at the forthcoming 26th AGM, and have expressed their willingness to seek for re-election at the 26th AGM. RESINTECH BERHAD 40 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part II - Board Composition (cont’d)

Directors’ Training

All Directors have completed the Mandatory Accreditation Programme (”MAP”) as prescribed by Bursa Securities.

Directors’ training is an on-going process as the Directors recognise the need to continually develop and refresh their skills and knowledge and to update themselves on the developments in the related industry and business landscape. The Directors will continue to participate from time to time in training programmes to keep abreast with the latest developments in the capital markets, relevant changes in laws and regulations, corporate governance matters, and current business issues, from time to time.

The Board has undertaken an assessment of the training needs of each Director and ensured that all the Directors undergo the necessary training programme to enable them to effectively discharge their duties.

During the financial year under review, the Directors was updated on recent developments in the areas of statutory and regulatory requirements from the briefing by the External Auditors, the Internal Auditors and the Company Secretaries during the Board Committees and/or Board meetings and suitable training and education programmes were identified for their participation from time to time.

During the financial year ended 31 March 2021, the Directors have attended the following training, seminars and conferences:-

Directors Date of Course Seminar / Course Kok Wee Wah 13 November 2020 Belanjawan 2021 – Tax Highlights 17 November 2020 Malaysia Budget 2021 Webinar Dato’ Hj. Razif Ratha 17 November 2020 Malaysia Budget 2021 Webinar Bin Abdullah 26 November 2020 Industry Briefing on ESG Shariah Compliant Screening for Securities 10 March 2021 Seminar on National AEO by Persatuan Pegawai Kastam Malaysia Teh Leng Kang 17 November 2020 Malaysia Budget 2021 Webinar Wei Hwei Hong 17 November 2020 Malaysia Budget 2021 Webinar Datuk Hj. Abdul Fatah 17 November 2020 Malaysia Budget 2021 Webinar Bin Hj. Iskandar

Dato’ Dr. Teh Kim Poo and Datin Gan Jew are unable to attend external training due to their busy schedule. However, they have gained other relevant knowledge through reading materials and trade business discussions. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 41 ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part III – Remuneration

Intended Outcome 6.0 The level and composition of remuneration of directors and senior management consider the company’s desire to attract and retain the right talent in the board and senior management to drive the company’s long-term objectives.

Remuneration policies and decisions are made through a transparent and independent process.

The Remuneration Committee (“RC”) was established comprising exclusively of Independent & Non-Executive Directors.

The RC and the Board ensure that the Company’s remuneration policy remains supportive of the Company’s corporate objectives and is aligned with the interest of shareholders, and further that the remuneration packages of Directors and key Senior Management Officers are sufficiently attractive to attract and to retain persons of high calibre.

The RC is entrusted under its terms of reference which are available at the Company’s website, reviews annually the performance of the Executive Directors and submits recommendations to the Board on specific adjustments in remuneration and/or reward payments that reflect their respective contributions for the year, depending on the performance of the Group, achievement of the goals and/or quantified organisational targets as well as strategic initiatives set at the beginning of each year.

The Executive Directors are not entitled to the Director’s fee and any meeting allowance for Board or Board Committee Meetings they attend. The remuneration package of the Executive Directors consists of monthly salary, bonus and benefits- in-kind such as company car and the benefit of Directors and Officers Liability Insurance in respect of any liabilities arising from acts committed in their capacity as Directors and Officers of the Company. The Directors and principal officers are required to contribute jointly towards the premium of the said policy.

During the financial year ended 31 March 2021, one (1) RC meeting was conducted and the details of their attendance of the meetings during the financial period are as follows:

No. of Meetings attended in Percentage Name Designation Directorship FYE 31 March 2021 (%) Kok Wee Wah Chairman Independent 1/1 100 Non-Executive Director Datuk Hj. Abdul Fatah Member Senior Independent 1/1 100 Bin Hj. Iskandar Non-Executive Director Dato’ Hj. Razif Ratha Member Independent 1/1 100 Bin Abdullah Non-Executive Director RESINTECH BERHAD 42 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part III – Remuneration (cont’d)

Intended Outcome 7.0 Stakeholders can assess whether the remuneration of directors and senior management is commensurate with their individual performance, taking into consideration the company’s performance.

The details of the Directors’ remuneration (including benefits-in-kind) of each Director of the Company, paid and payable for the financial year ended 31 March 2021 are as follows:

Company Salary, Categories of Directors Bonus and Meeting EPF Benefit- Remuneration Fees Incentive Allowance Contribution in-kind (RM) (RM) (RM) (RM) (RM) Executive Directors Dato’ Dr. Teh Kim Poo – 614,250 – 57,510 593 Datin Gan Jew – 273,000 – 25,560 593 Teh Leng Kang – 409,500 – 38,340 923 Wei Hwei Hong – 379,500 – 38,340 923 Non-Executive Directors Datuk Hj. Abdul Fatah 35,000 – 3,000 – – Bin Hj. Iskandar Kok Wee Wah 31,500 – 3,750 – – Dato’ Hj. Razif Ratha 28,750 – 3,000 – – Bin Abdullah Khairul Anuar Bin Shaharudin 12,750 – 3,000 – – (Retired on 25 September 2020) RESINTECH BERHAD Registration No. 199501012460 (341662-X) 43 ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part III – Remuneration (cont’d)

The Number of Directors of the Group and Company whose remuneration fall within the following bands is tabulated as below:-

Group Company Non- Non- Executive Executive Executive Executive Range of Remuneration Directors Directors Directors Directors

Up to RM50,000 – 3 – 3 RM50,001 – RM100,000 – – – – RM100.001 – RM150,000 – – – – RM250.001 – RM300,000 1 – – – RM400,001 – RM450,000 2 – – – RM650,001 – RM700,000 1 – – –

Total 4 3 – 3

The Executive Directors are also the key senior management of the Company, whose remuneration have been included in the disclosure under the Directors’ Remuneration above.

PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT

Part I – Audit Committee (“AC”)

Intended Outcome 8.0 There is an effective and independent AC.

The board is able to objectively review the AC’s findings and recommendations. The company’s financial statement is a reliable source of information.

Ac Composition and Chairman

The AC of the Company comprises all Independent Non-Executive Directors and is chaired by Mr. Kok Wee Wah, who is not the Chairman of the Board. The AC members possess an appropriate range of experience and qualifications, including the appropriate financial literacy to meet the objectives of AC.

The AC has adopted a policy that requires a former key audit partner to observe a cooling-off period of at least two (2) years before being appointed as a member of the AC.

The AC is relied upon by the Board to, amongst others, provide advice in the areas of financial reporting, external audit, internal control environment and internal audit process, review of related party transactions as well as conflict of interest situation. The AC also undertakes to provide oversight on the risk management framework of the Group. RESINTECH BERHAD 44 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part I – Audit Committee (“AC”) (cont’d)

Ac Composition and Chairman (cont’d)

The AC is responsible for reviewing audit, recurring audit-related and non-audit services provided by the External Auditors. These recurring audit-related and non-audit services comprise regulatory reviews and reporting, interim reviews, tax advisory and compliance services.

The terms of engagement for services provided by the External Auditors are reviewed by the AC prior to submission to the Board for approval.

All the AC members, who are financially literate and have direct communication channels with the External and Internal auditors, reviewed the Company’s financial statements prior to recommending them for approval by the Board.

The Financial Controller updates the AC regularly on the Group’s financial performance and highlights key issues in connection with the preparation of the financial results, including adoption of new accounting standard/policies.

As part of the governance process in reviewing the quarterly and yearly financial statements by the AC, the MD and the Financial Controller provided assurance to the AC that adequate processes and controls were in place for effective and efficient financial reporting and disclosures.

The AC has reviewed the provision of non-audit services by the External Auditors during the year and concluded that the provision of these services did not compromise the External Auditors’ independence and objectivity as the amount of the fees paid for these services was not significant when compared to the total fees paid to the External Auditors.

Having satisfied itself with Messrs. Crowe Malaysia PLT’s performance, competency and audit independence as well as fulfilment of criteria as set out in the Auditors’ Independence Policy, the AC will recommend their re-appointment to the Board, upon which the shareholders’ approval will be sought at the forthcoming AGM.

The Company has in placed an External Auditors Performance and Independent checklist and will adopt the same in the next financial year onwards to evaluate the performance of the External Auditors, including the review of the caliber of the audit firm, quality of processes, audit team, independence and objectivity, audit scope and planning, audit fees and audit communications.

The AC has also obtained a written assurance from the External Auditors confirming that they are and have been independent throughout the conduct of the audit engagement in accordance with the terms of all relevant professional and regulatory requirements.

The composition of AC is reviewed by NC and recommended to the Board for its approval. The NC in maintaining an independent and effective AC, will ensure that only an Independent Non-Executive Director who is financially literate, has the relevant expertise and experience, and the strong understanding of the Company’s business would be considered for appointment on AC. All the AC members will continue to attend training to keep themselves abreast of recent developments in accounting and auditing standards, practices and rules. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 45 ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part II – Risk Management and Internal Control Framework

Intended Outcome 9.0 Companies make informed decisions about the level of risk they want to take and implement necessary controls to pursue their objectives.

The board is provided with reasonable assurance that adverse impact arising from a foreseeable future event or situation on the company’s objectives is mitigated and managed

The Board is ultimately responsible for the adequacy and integrity of the Company’s internal control system. Details pertaining to the Company’s internal control system and the reviews of its effectiveness are set out in the Statement on Risk Management and Internal Control of this Annual Report.

Intended Outcome 10.0 Companies have an effective governance, risk management and internal control framework and stakeholders are able to assess the effectiveness of such a framework.

The Board oversees, reviews and monitors the operation, adequacy and effectiveness of the Group’s system of internal controls.

The AC, through guidance by the internal auditors, advises the Board on areas of high risk faced by the Group and the adequacy and effectiveness of the governance, risk and control structures and processes throughout the Group. The Board deliberates the recommendations made by the AC on the action plans implemented and ensures the appropriate implementation of internal controls and mitigation measures to manage risks.

The AC is tasked to oversee the risk management framework of the Group, review the risk assessment and management policies formulated by Management together with the Internal Auditors and makes relevant recommendations to Management to update the Group Risk Profile. The AC also discusses with the Board on areas of high risk faced by the Group and the adequacy of compliance and control throughout the organisation, and makes relevant recommendations to the Board to manage residual risks. The Board has been integrating the risk issues into their decision making process whilst maintaining the flexibility to lead the business of the Group through the ever-changing internal and external environments.

The Company continues to maintain and review its internal control procedures to ensure the protection of its assets and its shareholders’ investment.

The Company has outsourced its Internal audit function to a professional services firm namely, Smart Focus Group to assist the AC in discharging its duties and responsibilities in respect of reviewing the adequacy and effectiveness of the Group’s risk management and internal control systems.

The internal auditor primarily acts as an assurance unit highlighting significant audit findings, areas for improvement, management comment on the audit findings and subsequently monitors the implementation of its recommended corrective actions.

The Statement on Risk Management and Internal Control as included on pages 48 to 52 of this Annual Report provides the overview of the internal control framework adopted by the Company during the financial year ended 31 March 2021. RESINTECH BERHAD 46 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

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

Part I – Communication with Stakeholders

Intended Outcome 11.0 There is continuous communication between the company and stakeholders to facilitate mutual understanding of each other’s objectives and expectations.

Stakeholders are able to make informed decisions with respect to the business of the company, its policies on governance, the environment and social responsibility.

The Company recognises the importance of transparency and accountability to its shareholders and the need to have a clear and effective communications with the Company’s institutional investors, shareholders and other stakeholders. Communication is facilitated by a number of formal channels used to inform shareholders about the performance, business activities, financial performance, material information and corporate events of the Group. Shareholders, investors and various stakeholders can also access these information via the Company’s website at www.resintechmalaysia.my.

In addition to the above, shareholders and investors can make inquiries about investor relations matters with designated management personnel directly responsible for investor relations activities, via dedicated e-mail addresses available on the corporate website.

The MD and Financial Controller are responsible for determining materiality of information and ensuring timely, complete and accurate disclosure of material information to the investing public in accordance with securities laws and stock exchange rules and regulations, monitoring compliance with this policy and overseeing the disclosure controls and procedures. Sufficient information would be provided to the Company Secretary for drafting of necessary announcement.

The Board is mindful that information which is expected to be material must be announced immediately, and that the confidential information should be handled properly to avoid leakage and improper use of such information. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 47 ANNUAL REPORT 2021

Corporate Governance Overview Statement (cont’d)

PRINCIPLE C: INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS (cont’d)

Part II – Conduct of General Meetings

Intended Outcome 12.0 Shareholders are able to participate, engage the board and senior management effectively and make informed voting decisions at General Meetings.

The Company’s website provides all relevant corporate information and it is accessible by the public. The Company’s website includes share price information, all announcements made by the Company, Annual Reports, financial results, corporate calendar as well as the corporate governance statement of the Company. Through the Company’s website, the stakeholders are able to direct queries to the Company.

In an effort to encourage greater shareholders’ participation at AGMs, the Board takes cognisance in serving longer than the required minimum notice period for AGMs, when possible. The Chairman cum the Senior Independent Director ensures that the Board is accessible to shareholders and an open channel of communication is cultivated.

The Company encloses the Annual Report together with the notice of AGM with regard to, amongst others, details of the AGM, their entitlement to attend the AGM, the right to appoint proxy and also qualification of proxy. The Company allows a shareholder to appoint a proxy who may not be a member of the Company. If the proxy is not a member of the Company, he/she need not be an advocate, approved company auditors or a person approved by the Registrar of Companies.

The AGM of the Company provides the principal forum of dialogue and interaction between the Board and the shareholders. At each AGM, the Board presents the progress or performance of the Company and shareholders are given the opportunities to raise questions or to seek clarifications of pertinent and relevant information of the Company. During the meeting, the Chairman, Board members and External Auditors are available to respond to shareholders’ queries.

Pursuant to the amendments to the Listing Requirements announced on 24 March 2016, the Board will put to vote all the resolutions set out in the notice of the AGM by poll at the Company’s AGM. Each item of special business included in the notice of AGM will be accompanied by an explanation of the proposed resolutions. All shareholders or proxies will be briefed on the voting procedures prior to the poll voting by the share registrar. The outcome of the resolutions tabled and passed at the AGM is released to Bursa Securities on the same day of the meeting.

Key Focus Area and Priorities on Corporate Governance

The Board, in addition to the above matters, has reviewed and adopted an Anti-Bribery and Corruption Policy as guided by the “Guidelines on Adequate Procedures” issued by the Prime Minister’s Department to promote better governance culture and ethical behavior within the Group and to prevent the occurrence of corrupt practices in accordance with the new Section 17A of the Malaysian Anti-Corruption Commission Act 2018 on corporate liability for corruption which came into force on 1 June 2020 and included corruption risks in the annual risk assessment of the Group. The Anti-Corruption Policy is published on the Company’s website.

Looking ahead to 2021, the Company will continue working towards achieving high standard of corporate governance and leverage on technology to broaden its channel of dissemination of information and to enhance the quality of engagement with the shareholders.

COMPLIANCE STATEMENT

The Board is satisfied that the Company has in 2020/2021 complied with the principles and practices of the MCCG save for otherwise indicated in the Corporate Governance Report.

This Corporate Governance Overview Statement was approved by the Board on 17 August 2021. RESINTECH BERHAD 48 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

INTRODUCTION

The Malaysian Code on Corporate Governance 2017 (“MCCG”) requires listed companies to maintain a sound system of internal control to safeguard shareholders’ investments and the Group’s assets. Pursuant to Paragraph 15.26(b) of the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”), the Board of Directors (“the Board”) of Resintech Berhad (“Resintech” or “the Company”) is pleased to report on its Statement on Risk Management and Internal Control, which provides an overview of the nature and state of risk management and internal controls of the Company and its group of companies (“the Group”) during the financial year under review and up to the date of approval of this statement by the Board. This statement is guided by the latest Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers issued by the Taskforce on Internal Control with the support and endorsement of the Bursa Securities and MCCG.

BOARD RESPONSIBILITY AND ACCOUNTABILITY

The Board recognises the importance of good risk management practices and sound internal controls as a platform for good corporate governance. The Board acknowledges its overall responsibility for maintaining a sound system of risk management and internal control, and for reviewing its adequacy and integrity.

Due to inherent limitations in any risk management and internal control system, such a system are designed to manage the risk that may impede the achievement of the Group’s business objectives rather than eliminate these risks. Therefore, the risk management and internal control system can only provide reasonable and not absolute assurance against fraud, material misstatement, losses, or errors.

The Board, through its Audit Committee (“AC”) has established an ongoing process for identifying, evaluating, and managing the significant risks faced by the Group and this process includes enhancing the risk management and internal control system as and when there are changes to the business environment and regulatory requirements. The process is reviewed by the Board and the AC on a periodic basis.

Management assists the Board in the implementation of the Board’s policies and procedures on risk and control by identifying and assessing the risks faced by the Group, and in the design and operation of suitable internal controls to mitigate these risks identified.

The effectiveness of internal controls was reviewed by the AC in relation to the audits conducted by internal auditors (“IA”) during the financial year. Audit issues and actions taken by Management to address the issues tabled by IA were deliberated during the AC meetings. Minutes of the AC meetings which recorded these deliberations were presented to the Board.

Internal control and risk-related matters which warranted the attention of the Board were recommended by the AC to the Board for its deliberation and approval and matters or decisions made within the AC’s purview were referred to the Board for its notation.

MANAGEMENT’S RESPONSIBILITIES

Senior Management is accountable to the Board for the risk management and the internal control system and for the implementation of processes to identify, evaluate, monitor and report the relevant risks. The implementation of the risk management process for the Group is the responsibility of the Resintech’s Senior Management. The Risk Management Committee (“RMC”) has been established at Resintech, for its operations to institutionalise risk management practices.

Review and ensure the effectiveness of the risk management policies and processes. Manage the relevant risks that may impede the achievement of objectives are identified and appropriate mitigating actions have been implemented. Identify significant changes to Resintech’s risks, including emerging risks and take actions as appropriate to communicate to Resintech Group’s AC and the Board. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 49 ANNUAL REPORT 2021

Statement on Risk Management and Internal Control (cont’d)

MANAGEMENT’S RESPONSIBILITIES (cont’d)

The RMC which is chaired by the Executive Director (“ED”), to ensure the continual effectiveness, adequacy and integrity of the risk management system and that key risk matters would be recommended for escalation to the AC and the Board for deliberation and approval. The senior management of the principal subsidiary companies is tasked to identify and manage the significant risks that are affecting their respective business units. The risk management practices adopted by the Group’s principal subsidiary companies are aligned to the Group’s risk management practices.

The Board is of the view that the risk management and internal control system in place for the year under review and up to the date of issuance of the annual report is adequate and effective to safeguard the shareholders’ investment, the interests of customers, regulators, employees and the Group’s assets.

RISK MANAGEMENT FRAMEWORK

The Board regards risk management as an integral part of the Group’s business operations and has oversight over this critical area through the AC. The AC, supported by the IA, provides an independent assessment of the effectiveness of the Group’s Enterprise Risk Management (“ERM”) framework and reports to the Board. The Group’s ERM framework is consistent with the ERM framework and involves systematically identifying, analysing, measuring, monitoring and reporting on the risks that may affect the achievement of its business objectives. This framework helps to reduce the uncertainties surrounding the Group’s internal and external environment, thus allowing it to maximise opportunities and minimise adverse incidences that may arise. The major risks to which the Group is exposed to includes strategic, operational, regulatory, financial, market, technologies, products and reputational risks.

Significant risks identified are subsequently brought to the attention of RMC and report to the Board at the scheduled board meetings. The Board has an established ongoing process for identifying, evaluating and managing the significant risks encountered by the Company in accordance to the Guidance for Directors of Public Listed Companies on Statement on Risk Management and Internal Control. Risk Management is an integral part of the business operations and this process goes through a review process by the Board. Discussions have been conducted during the year involving different levels of managements to identify and address risks faced by the Group. These risks were summarised and included in the Group’s risk management report. The Group has an ongoing process for identifying, evaluating and managing the significant risks faced by the Group throughout the financial year under review and up to the date of approval of this statement for inclusion in the annual report by the Management. This is to ensure that all high risks are adequately addressed at various levels within the Group. The company has adopted a global standard for the risk management segment.

The ERM process is based on the following principles:

• Consider and manage risks enterprise-wide; • Integrate risk management into business activities; • Manage risk in accordance with the Risk Management framework; • Tailor responses to business circumstances; and • Communicate the risks and responses to Management

All identified risks are displayed on a one (1) to three (3) risk matrix based on their risk ranking to assist the management in prioritising their efforts and appropriately managing the different classes of risks. The Board and Management drive a pro-active risk management culture and regular risk awareness and coaching sessions are held to ensure that the Group’s employees have a good understanding and application of risk management principles.

There is no dedicated ERM department, however the ED and Financial Controller (“FC”) who works closely with the Group’s operational managers are continuously to strengthen the risk management initiatives within the Group so that it responds effectively to the constantly changing business environment and is thus able to protect and enhance shareholder value. RESINTECH BERHAD 50 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Statement on Risk Management and Internal Control (cont’d)

RISK STRUCTURE/ACCOUNTABILITY AND RESPONSIBILITY

Further improving Resintech’s risk governance, ERM structures have been established in each department and subsidiary. The aim is for a risk culture to be internalised through risk ownership and to drive ERM implementation at the functional level. ERM Resource Persons also known as Head of Department (“HOD”)/ Risk Coordinators (“RCs”), are appointed at each business unit, and act as the single point of contact to liaise directly with the ED and FC in matters relating to ERM, including the submission of reports on a periodic basis. In addition, they are responsible for assisting their HOD to manage and administer the business units’ risk portfolios, which include arranging, organising and coordinating ERM programmes.

In FYE2021, reviews on various risk areas were performed and report were issued.

INTERNAL CONTROL SYSTEM AND ENVIRONMENT

Apart from the risk management and internal audit, the Group has put in place the following key elements of internal controls.

• The Group has an organisational structure that is aligned to business requirements. • The internal control mechanism is embedded in the various work processes at appropriate levels in the Company.

The Board is accountable for ensuring the existence and effectiveness of internal control and provides leadership and direction to senior management in the manner the Company controls its businesses, the state of internal control and its activities. In developing the internal control systems, consideration is given to the overall control environment of the Company, assessment of financial and operational risks and an effective monitoring mechanism.

INTERNAL AUDIT

The Board is fully aware of the importance of the internal audit function and has engaged an independent professional firm, namely Messrs. Smart Focus Group (“IA Firm”) to provide independent assurance to the Board and the AC in providing an independent assessment on the adequacy, efficiency and effectiveness of the Group’s internal control system.

The IA Firm adopts a risk based approach and prepares its audit plan based on the risk profiles from the risk assessment of the business units of the Group. Scheduled internal audits are carried out based on the annual audit plan approved by the AC. The IA Firm presents the AC with the internal audit reports.

During the year under review, internal audit reviews were carried out by the Internal Audit team to address the related internal control weaknesses. The significant weaknesses identified during the reviews together with the improvement measures to strengthen the internal controls were reported accordingly.

The main elements in the system of internal control framework included:

• An organisational structure in the Group with formally defined lines of responsibility and delegation of authority; • Documentation of written policies and procedures for certain key operational areas; • Quarterly review of financial results by the Board and the AC; • Active participation and involvement by the Managing Director (“MD”) and the ED in the day-to-day running of the major businesses and regular discussions with the Senior Management of smaller business units on operational issues; • Review of internal audit reports and findings by the AC; and • Monthly review of Group management accounts by MD, ED and Management. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 51 ANNUAL REPORT 2021

Statement on Risk Management and Internal Control (cont’d)

INTERNAL AUDIT (cont’d)

The Internal Audit (“IA”) also periodically reports on the activities performed, key strategic and control issues observed by IA to the AC in order to preserve its independence. The AC reviews and approves IA’s annual budget, remuneration, audit plan and human resource requirements to ensure the function maintains an adequate number of internal auditors with sufficient knowledge, skills and experience. IA adopts the International Standards for the Professional Practice of Internal Auditing of the Institute of Internal Auditors (IIA), the definition of Internal Auditing, Code of Ethics, Practices and Framework in order to ensure standardisation and consistency in providing assurance on the adequacy, integrity and effectiveness of the Group’s overall system of internal controls, risk management and governance. IA has aligned its current internal audit practices with the Committee of Sponsoring Organizations of the Treadway Commission (COSO – USA Standard) and the Criteria of Control Board (COCO - Canadian Standard)’s Internal Controls – Integrated Framework.

Using this framework, all internal control assessments performed by IA are based on the internal control elements, scope and coverage. IA continues to adopt the risk-based audit plan to ensure the programmes carried out are prioritised based on the Group’s key risks and core or priority areas. Input from various sources inclusive of the ERM Framework, business plan, past audit issues, external auditors, Management and Board are gathered, assessed and prioritised to derive the annual audit plan.

In FYE2021, reviews on various areas were performed and five (5) reports were issued. The Internal Audit function has reviewed the state of internal control on the below segment of audit within the company based on the information provided by the management and line managers namely,

• Finance and Procurement • Sale and Human Resources Management • Production Management • Marketing Management • Risk Management Report

All reports from the internal audit reviews carried out were submitted and presented to the AC with the feedback and agreed corrective actions to be undertaken by Management. Subsequently, the progress of these corrective actions was monitored and verified by IA prior submitting to the AC. IA committed to equip the internal auditors with sufficient knowledge, skills and competencies to discharge their duties and responsibilities.

QUALITY ASSURANCE

The IA develops and maintains a quality assurance and improvement programme that covers all aspects of internal audit activities. The quality assurance programme assesses the effectiveness of IA processes and identifies opportunities for improvement via both internal and external assessment. It has its own peer reviewer mechanism to ensure consistently good quality output of every audit engagement. The team leader is well experienced to manage the internal audit assignments.

INFORMATION AND COMMUNICATION

While the Management has full responsibility in ensuring the effectiveness of internal control, which it establishes, the Board of Directors has the authority to assess the state of internal control as it deems necessary. In doing so, the Board has the right to enquire information and clarification from Management as well as to seek inputs from the AC, external and internal auditors, and other experts at the expense of the Company. RESINTECH BERHAD 52 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Statement on Risk Management and Internal Control (cont’d)

REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS

Pursuant to Paragraph 15.23 of the MMLR, the External Auditors have reviewed this Statement on Risk Management and Internal Control for inclusion in this Annual Report. Their reviews were performed in accordance with Malaysian Approved Standard on Assurance Engagements, ISAE 3000 (Revised), Assurance Engagement Other than Audits or Reviews of Historical Financial Information and Audit and Assurance Practice Guide 3, Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Control included in the Annual Report issued by the Malaysian Institute of Accountants. Based on their reviews, nothing has come to their attention that causes them to believe that this Statement is not prepared, in all material respects, in accordance with the disclosures required by paragraph 41 and 42 of the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers to be set out, nor is factually inaccurate.

ASSURANCE FROM THE MANAGEMENT

The Board has also received reasonable assurance from the MD, FC and other Department Heads that the Group’s risk management and internal control system are operating adequately and effectively, in all material aspects, based on the risk management model adopted by the Group.

CONCLUSION

For the financial year under review, there were no significant internal control deficiencies or material weaknesses resulting in material losses or contingencies requiring separate disclosure in the Annual Report. The Board is of the view that the Group’s system of internal control and risk management is adequate to safeguard shareholders’ investments and the Group’s assets. However, the Board is also cognisant of the fact that the Group’s system of internal control and risk management practices must continuously evolve to meet the changing and challenging business environment. Therefore, the Board will, when necessary, put in place appropriate action plans to further enhance the Group’s system of internal control and risk management framework.

This Statement on Risk Management and Internal Control was made in accordance with a resolution of the Board on 17 August 2021. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 53 ANNUAL REPORT 2021

DIRECTORS’ RESPONSIBILITIES STATEMENT

The Board of Directors of the Company is responsible in preparing financial statements and ensuring that: i. The annual audited financial statements of the Group and of the Company are drawn up in accordance with applicable approved accounting standards in Malaysia, the provisions of the Companies Act 2016 and the Main Market Listing Requirements of Bursa Securities so as to give a true and fair view of the state of affairs of the Group and the Company for the financial year; and ii. Proper accounting and other records are kept which enable the preparation of the financial statements with reasonable accuracy and taking reasonable steps to ensure that appropriate systems are in place to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

In preparing the financial statements for the financial year ended 31 March 2021, the Directors of the Company have: a) Adopted the appropriate accounting policies and have applied them consistently; b) Made judgements and estimates that are reasonable and prudent; c) Ensured applicable accounting standards have been followed, subjects to any material departures disclosed and explained in the financial statements; and d) Prepared the financial statements going concern basis as the Directors have a reasonable expectation, having made enquiries, that the Group and the Company have adequate resources to continue in operational existence for the foreseeable future.

The Directors have overall responsibility for taking such steps that are reasonably open to them to safeguard the assets of the Group and the Company to prevent and detect fraud and other irregularities. RESINTECH BERHAD 54 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

ADDITIONAL COMPLIANCE INFORMATION

1. AUDIT AND NON-AUDIT FEES

The auditors’ remuneration including non-audit fees for the Company and the Group for the financial year ended 31 March 2021 are as follows:-

Group Company Details of Audit Fees (RM) (RM) - Statutory Audit Fees 239,000 75,000 - Non-Audit Fees 5,000 5,000 Total 244,000 80,000

2. MATERIAL CONTRACTS INVOLVING DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST

There were no material contracts entered into by the Company and its subsidiaries involving the interest of the Directors, Chief Executive who is not a Director or major shareholders, either still subsisting at the end of the year, or which was entered into since the end of previous financial year.

3. UTILISATION OF PROCEEDS

There were no proceeds raised from any corporate proposals during the financial year.

4. RECURRENT RELATED PARTY TRANSACTIONS OF REVENUE NATURE (“RRPT”)

There was no shareholders’ mandate obtained in respect of RRPT of revenue or trading nature during the financial year end. However, details of transactions with related parties undertaken by the Group during the financial year end are disclosed in Note 42 of the Financial Statements. FINANCIAL STATEMENTS

56 Directors’ Report 62 Statement by Directors 62 Statutory Declaration 63 Independent Auditors’ Report 70 Statements of Financial Position 72 Statements of Profit or Loss and Other Comprehensive Income 74 Statements of Changes in Equity 77 Statements of Cash Flows 79 Notes to the Financial Statements RESINTECH BERHAD 56 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

DIRECTORS’ RESINTECH BERHAD (IncorporatedREPORT in Malaysia) Registration No: 199501012460 (341662 - X)

DIRECTORS’ REPORT

The directors hereby submit their report and the audited financial statements of the Group and of the Company for the financial year ended 31 March 2021.

PRINCIPAL ACTIVITIES

The Company is principally engaged in the business of investment holding and the provision of management services. The principal activities of the subsidiaries are set out in Note 5 to the financial statements. There have been no significant changes in the nature of these activities during the financial year.

RESULTS The Group The Company RM'000 RM'000

Profit after taxation for the financial year 5,867 4,254

Attributable to:- Owners of the Company 5,867 4,254

DIVIDENDS

Dividends paid or declared by the Company since 31 March 2020 are as follows:-

RM

In respect of the financial year ended 31 March 2020 A first interim single-tier dividend of 1.5 sen per ordinary share, paid on 30 September 2020 2,058,074

In respect of the financial year ended 31 March 2021 A first interim single-tier dividend of 1.25 sen per ordinary share, paid on 23 March 2021 1,715,061

3,773,135

The directors do not recommend the payment of any further dividends for the financial year.

RESERVES AND PROVISIONS

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

Page 1 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 57 ANNUAL REPORT 2021

Directors’ Report RESINTECH BERHAD (cont’d) (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

DIRECTORS’ REPORT

ISSUES OF SHARES AND DEBENTURES

During the financial year:-

(a) there were no changes in the issued and paid-up share capital of the Company; and

(b) there were no issues of debentures by the Company.

OPTIONS GRANTED OVER UNISSUED SHARES

During the financial year, no options were granted by the Company to any person to take up any unissued shares in the Company.

BAD AND DOUBTFUL DEBTS

Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps to ascertain that action had been taken in relation to the writing off of bad debts and the making of allowance for impairment losses on receivables and satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for impairment losses on receivables.

At the date of this report, the directors are not aware of any circumstances that would require the further writing off of bad debts, or the additional allowance for impairment losses on receivables in the financial statements of the Group and of the Company.

CURRENT ASSETS

Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps to ensure that any current assets, which were unlikely to be realised in the ordinary course of business, including their value as shown in the accounting records of the Group and of the Company, have been written down to an amount which they might be expected so to realise.

At the date of this report, the directors are not aware of any circumstances which would render the values attributed to the current assets in the financial statements misleading.

VALUATION METHODS

At the date of this report, the directors are not aware of any circumstances which have arisen which render adherence to the existing methods of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

Page 2 RESINTECH BERHAD 58 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Directors’ Report RESINTECH(cont’d) BERHAD (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

DIRECTORS’ REPORT

CONTINGENT AND OTHER LIABILITIES

At the date of this report, there does not exist:-

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

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

No contingent or other liability of the Group and of the Company has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations when they fall due.

CHANGE OF CIRCUMSTANCES

At the date of this report, the directors are not aware of any circumstances 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.

ITEMS OF AN UNUSUAL NATURE

The results of the operations of the Group and of the Company during the financial year were not, in the opinion of the directors, substantially affected by any item, transaction or event of a material and unusual nature.

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, in the opinion of the directors, 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.

Page 3 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 59 ANNUAL REPORT 2021

Directors’ Report RESINTECH BERHAD (cont’d) (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

DIRECTORS’ REPORT

DIRECTORS

The names of directors of the Company who served during the financial year and up to the date of this report are as follows:-

Datuk Hj. Abdul Fatah Bin Hj. Iskandar, DSPM, JPN Dato’ Dr. Teh Kim Poo, DSSA, PJK, JP Datin Gan Jew, PJK Teh Leng Kang, PJK Wei Hwei Hong Kok Wee Wah Dato’ Hj. Razif Ratha Bin Abdullah Khairul Anuar Bin Shaharudin (Retired on 25.9.2020)

The names of the directors of the Company’s subsidiaries who served during the financial year and up to the date of this report, not including those directors mentioned above, are as follows:-

Teh Hooi Ching Roslan Bin Mohamad Nanek

DIRECTORS’ INTERESTS

According to the register of directors’ shareholdings, the interests of directors holding office at the end of the financial year in shares of the Company and its related corporations during the financial year are as follows:-

<------Number of Ordinary Shares------> At At 1.4.2020 Bought Sold 31.3.2021

The Company

Direct Interests

Dato’ Dr. Teh Kim Poo, DSSA, PJK, JP 58,975,599 - - 58,975,599 Datin Gan Jew, PJK 9,868,600 - - 9,868,600 Teh Leng Kang, PJK 6,915,702 537,000 - 7,452,702 Wei Hwei Hong 1,345,500 250,000 - 1,595,500

Deemed Interests

Dato’ Dr. Teh Kim Poo, DSSA, PJK, JP# 17,089,302 537,000 - 17,626,302 Datin Gan Jew, PJK# 66,196,301 537,000 - 66,733,301 Teh Leng Kang, PJK# 1,345,500 250,000 - 1,595,500 Wei Hwei Hong# 6,915,702 537,000 - 7,452,702

Note:-

# Deemed interested through spouse’s and/or children’s shareholdings in the Company.

Page 4 RESINTECH BERHAD 60 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Directors’ Report RESINTECH(cont’d) BERHAD (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

DIRECTORS’ REPORT

DIRECTORS’ INTERESTS (CONT’D)

By virtue of their shareholdings in the Company, Dato’ Dr. Teh Kim Poo, DSSA, PJK, JP and Datin Gan Jew, PJK are deemed to have interests in shares in its related corporations during the financial year to the extent of the Company’s interests, in accordance with Section 8 of the Companies Act 2016.

The other directors holding office at the end of the financial year had no interest in shares of the Company or its related corporations during the financial year.

DIRECTORS’ BENEFITS

Since the end of the previous financial year, no director has received or become entitled to receive any benefit (other than a benefit included in the aggregate amount of remuneration received or due and receivable by directors shown in the financial statements, or the fixed salary of a full-time employee of the Company or related corporations) by reason of a contract made by the Company or a related corporation with the director or with a firm of which the director is a member, or with a company in which the director has a substantial financial interest except for any benefits which may be deemed to arise from transactions entered into in the ordinary course of business with companies in which certain directors have substantial financial interests as disclosed in Note 42(b) to the financial statements.

Neither during nor at the end of the financial year was the Group or the Company a party to any arrangements whose object is 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.

DIRECTORS’ REMUNERATION

The details of the directors’ remuneration paid or payable to the directors of the Company during the financial year are disclosed in Note 41(a) to the financial statements.

INDEMNITY AND INSURANCE COST

During the financial year, there was no indemnity given to or professional indemnity insurance effected for directors, officers or auditors of the Company.

SUBSIDIARIES

The details of the Company’s subsidiaries are disclosed in Note 5 to the financial statements.

SIGNIFICANT EVENT DURING THE FINANCIAL YEAR AND SUBSEQUENT EVENT

The significant event during the financial year and subsequent event is disclosed in Note 46 to the financial statements.

Page 5 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 61 ANNUAL REPORT 2021

Directors’ Report RESINTECH BERHAD (cont’d) (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

DIRECTORS’ REPORT

AUDITORS

The auditors, Crowe Malaysia PLT, have expressed their willingness to continue in office.

The details of the auditors’ remuneration are disclosed in Note 33 to the financial statements.

Signed in accordance with a resolution of the directors dated 25 August 2021.

Teh Leng Kang, PJK

Datin Gan Jew, PJK

Page 6 RESINTECH BERHAD 62 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021 RESINTECH BERHAD (Incorporated in Malaysia) STATEMENTRegistration No: BY 199501012460 (341662 - X)

DIRECTORS pursuant to Section 251(2) of the Companies Act 2016

STATEMENT BY DIRECTORS PURSUANT TO SECTION 251(2) OF THE COMPANIES ACT 2016 RESINTECH BERHAD (IncorporatedWe, Teh Leng in Kang, Malaysia) PJK and Datin Gan Jew, PJK, being two of the directors of Resintech Berhad, state Registrationthat, in the opinionNo: 199501012460 of the directors, (341662 the -financial X) statements set out on pages 70 to 174 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 of 31 March 2021 and of their financial performance and cash flows for the financial year ended on that date. STATEMENT BY DIRECTORS PURSUANTSigned in accordance TO SECTION with a resolution 251(2) ofOF the THE directors COMPANIES dated 25 August ACT 2021.2016

We, Teh Leng Kang, PJK and Datin Gan Jew, PJK, being two of the directors of Resintech Berhad, state that, in the opinion of the directors, the financial statements set out on pages 70 to 174 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 of 31 March 2021 and of their financial performance and cash flows for the financial year ended on that date. Teh Leng Kang, PJK Datin Gan Jew, PJK Signed in accordance with a resolution of the directors dated 25 August 2021.

STATUTORY DECLARATION PURSUANT TO SECTION 251(1)(b) OF THE COMPANIES ACT 2016

I, Wei Hwei Hong, MIA Membership Number: 22445, being the director primarily responsible for the STATUTORY financial management of Resintech Berhad, do solemnly and sincerely declare that the financial Tehstatements Leng Kang, set out PJK on pages 70 to 174 are, to the best of my knowledge and belief, correct Datin andGan I Jew,make PJK this DECLARATIONsolemn declaration conscientiously believing the declaration to be true, and by virtue of the Statutory pursuantDeclarations to Section Act 251(1)(b)1960. of the Companies Act 2016

STATUTORYSubscribed and DECLARATIONsolemnly declared by the abovementioned PURSUANTWei Hwei Hong, TO NRIC SECTION Number: 251(1)(b) 760909-10-5544 OF THE COMPANIES ACT 2016 at Kuala Lumpur I,in theWei Federal Hwei Hong,Territory MIA Membership Number: 22445, being the director primarily responsible for the financialon this 25 managementAugust 2021 of Resintech Berhad, do solemnly and sincerely declare that the financial statements set out on pages 70 to 174 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the declaration to be true, and by virtue of the Statutory Declarations Act 1960.

Subscribed and solemnly declared by the abovementioned Wei Hwei Hong, NRIC Number: 760909-10-5544 at Kuala Lumpur Wei Hwei Hong Beforein the Federal me Territory on this 25 August 2021

Datin Hajah Raihela Wanchik (W-275) Commissioner for Oaths

Wei Hwei Hong Before me Page 7

Datin Hajah Raihela Wanchik (W-275) Commissioner for Oaths

Page 7

RESINTECH BERHAD Registration No. 199501012460 (341662-X) 63 ANNUAL REPORT 2021

INDEPENDENT

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF AUDITORS’ REPORT RESINTECH BERHAD to the members of Resintech Berhad (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the financial statements of Resintech Berhad, which comprise the statements of financial position as at 31 March 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 70 to 174.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the Company as at 31 March 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 Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.

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.

Page 8 RESINTECH BERHAD 64 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Independent Auditors’ Report to the members of Resintech Berhad (cont’d) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF RESINTECH BERHAD (CONT’D) (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

Key Audit Matters (Cont’d)

We have determined the matter described below to be the key audit matter to be communicated in our report.

Valuation of investment properties Refer to Note 7 to the financial statements Key Audit Matter How our audit addressed the Key Audit Matter

As at 31 March 2021, the carrying amount of Our procedures included, amongst others:- investment properties amounted to RM32,779,000 representing 23% and 15% of the Group’s total . Assessed the objectivity, independence, non-current assets and total assets respectively. competence and capabilities of the professional valuers; Investment properties are stated at fair value and . Reviewed the methodology adopted by the any gains or losses arising from changes in the fair independent valuers in estimating the fair value value are included in profit or loss in the year in of the investment properties and assessed which they arise. The Group has appointed whether such methodology is consistent with independent professional valuers to perform those used in the industry; valuations on its investment properties. The . Evaluated the appropriateness of the data used valuations are based on assumptions, amongst by the professional valuers as input into their others, comparable historical transactions and valuations; and adjustment factors to comparable transactions including location, size, condition, accessibility and . Interviewed the professional valuers, discussed design and market knowledge, estimated rental and challenged the significant estimates and value per square foot, expected market growth and assumptions applied in their valuation process. discount rate.

We consider the valuation of the investment properties as an area of audit focus as such valuation involves significant judgement and estimates that are highly subjective.

Page 9

RESINTECH BERHAD Registration No. 199501012460 (341662-X) 65 ANNUAL REPORT 2021

Independent Auditors’ Report to the members of Resintech Berhad (cont’d) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF RESINTECH BERHAD (CONT’D) (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

Key Audit Matters (Cont’d)

Valuation of other investments Refer to Note 10 to the financial statements Key Audit Matter How our audit addressed the Key Audit Matter

The Group classifies its unquoted equity Our procedures included, amongst others:- investments as Fair Value Through Other Comprehensive Income (“FVOCI”). In estimating . Obtained an understanding of the methodology the fair value of these investments, the Group adopted by management in estimating the fair used valuation techniques which took into value of these investments and whether such consideration key assumptions, estimates and/or methodology is consistent with those used in unobservable input information of the underlying the industry; companies in which the Group has invested in. . Discussed with management to obtain an understanding of the related underlying data We focused on this area as it involved the used as input to the valuation models; exercise of significant judgement by the directors . Discussed with the management the key and the use of assumptions and estimates. assumptions and estimates used in the valuation model; and . Assessed the appropriateness of the valuation techniques and checked the reasonableness of the discount rate used.

Recoverability of advances to Green Rubber Development Plantation Co., Ltd. (“GRP”) Refer to Note 13 to the financial statements Key Audit Matter How our audit addressed the Key Audit Matter

The Group has a 7.5% equity interest in GRP and Our procedures included, amongst others:- has made advances of RM4,428,000 for the operations of GRP. The Group has the option to . Made inquiries with management regarding convert the advances made into additional equity their action plans on recovery of the investment interest in GRP subsequently. made; . Obtained management’s impairment analysis GRP is involved in the plantation business and and gained an understanding of their owns a piece of concession land of 6,000 impairment assessment process; and hectares for a period of 70 years. . Assessed the appropriateness of the methodology adopted as well as the data and The assessment of the recoverability of advances information used in the impairment assessment. is significant to our audit as it is highly subjective and involves significant judgement.

Page 10 RESINTECH BERHAD 66 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Independent Auditors’ Report to the members of Resintech Berhad (cont’d) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF RESINTECH BERHAD (CONT’D) (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

Key Audit Matters (Cont’d)

Impairment of trade receivables Refer to Notes 12 and 45.1(b)(iii) to the financial statements Key Audit Matter How our audit addressed the Key Audit Matter

As at 31 March 2021, trade receivables that were Our procedures included, amongst others:- past due and not impaired amounted to RM7,429,000. The details of trade receivables and . Obtained an understanding of:- its credit risk are disclosed in Notes 12 and . the Group’s control over the trade 45.1(b)(iii) to the financial statements. receivables collection process;

The management applied assumptions in . how the Group identifies and assesses the assessing the level of allowance for impairment impairment of trade receivables; and losses on trade receivables based on the . how the Group makes the accounting following:- estimates for impairment. . Reviewed the ageing analysis of trade  customers’ payment profiles of past sales and receivables and testing the reliability thereof; corresponding historical credit losses; . Reviewed subsequent cash collections for  specific known facts or circumstances on major trade receivables and overdue amounts; customers’ ability to pay; or . Made inquiries of management regarding the  by reference to past default experience. action plans to recover overdue amounts; . Compared and challenged management’s view The impairment assessment involves significant on the recoverability of overdue amounts to judgements and there is inherent uncertainty in the historical patterns of collection; assumptions applied by the management to . determine the level of allowance. Hence, we Examined other evidence including customer determined this to be a key audit matter. correspondences, proposed or existing settlement plans, repayment schedules; and . Evaluated the reasonableness and adequacy of the allowance for impairment loss recognised.

Page 11 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 67 ANNUAL REPORT 2021

Independent Auditors’ Report to the members of Resintech Berhad (cont’d) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF RESINTECH BERHAD (CONT’D) (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

Information Other than the Financial Statements and Auditors’ Report Thereon

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

Our opinion on the financial statements of the Group and of the Company does not cover the 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 the 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 the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

Auditors’ Responsibilities for 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 auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Page 12 RESINTECH BERHAD 68 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Independent Auditors’ Report to the members of Resintech Berhad (cont’d) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF RESINTECH BERHAD (CONT’D) (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

Auditors’ Responsibilities for the 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 skepticism throughout the audit. We also:-

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

 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Company’s internal control.

 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

 Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Group and of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group or the Company to cease to continue as a going concern.

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

 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.

Page 13

RESINTECH BERHAD Registration No. 199501012460 (341662-X) 69 ANNUAL REPORT 2021

Independent Auditors’ Report to the members of Resintech Berhad (cont’d) INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF RESINTECH BERHAD (CONT’D) (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

Auditors’ Responsibilities for the Audit of the Financial Statements (Cont’d)

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, actions taken to eliminate threats or safeguards 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 auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiaries of which we have not acted as auditors, are disclosed in Note 5 to the financial statements.

OTHER MATTERS

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.

Crowe Malaysia PLT Kaw Hoong Siang 201906000005 (LLP0018817-LCA) & AF 1018 03379/06/2022 J Chartered Accountants Chartered Accountant

Kuala Lumpur

25 August 2021

Page 14 RESINTECH BERHAD 70 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

STATEMENTS OF RESINTECH BERHAD (IncorporatedRESINTECHFINANCIAL in POSITION Malaysia)BERHAD Registration(Incorporatedas at 31March No: 2021 in Malaysia)199501012460 (341662 - X) Registration No: 199501012460 (341662 - X) STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2021 STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2021

The Group The Company 2021 The Group 2020 2021 The Company 2020 NOTE RM'0002021 RM'0002020 RM'0002021 RM'0002020 NOTE RM'000 RM'000 RM'000 RM'000 ASSETS ASSETS NON-CURRENT ASSETS InvestmentsNON-CURRENT in subsidiaries ASSETS 5 - - 45,570 43,560 Property,Investments plant in subsidiariesand equipment 65 47,233- 47,263- 45,570 - 43,560- InvestmentProperty, plant properties and equipment 7 6 32,77947,233 38,21947,263 - - InvestmentRight-of-use properties assets 78 54,65532,779 38,21951,126 - - Right-of-useIntangible assets assets 89 54,655- 51,126- - - OtherIntangible investments assets 109 6,256- 7,504- 72 - 72- Other investments 10 6,256 7,504 72 72

140,923 144,112 45,642 43,632 140,923 144,112 45,642 43,632

CURRENT ASSETS InventoriesCURRENT ASSETS 11 25,070 21,225 - - TradeInventories receivables 1211 22,34225,070 17,03821,225 - - TradeOther receivables,receivables deposits and 12 22,342 17,038 - - Otherprepayments receivables, deposits and 13 11,460 14,282 6 67 Amount prepayments owing by subsidiaries 1413 11,460- 14,282- 21,8986 23,80567 CurrentAmount taxowing assets by subsidiaries 14 121- 36- 21,898 - 23,8057 Short-termCurrent tax investmentsassets 15 3,463121 48236 - 7- FixedShort-term deposits investments with licensed 15 3,463 482 - - Fixedbanks deposits with licensed 16 7,189 4,992 - - Cash banks and bank balances 16 6,7947,189 4,8184,992 1,315- 839- Cash and bank balances 6,794 4,818 1,315 839

76,439 62,873 23,219 24,718 76,439 62,873 23,219 24,718

Asset classified as held for sale 17 5,600 5,600 - - Asset classified as held for sale 17 5,600 5,600 - -

TOTAL ASSETS 222,962 212,585 68,861 68,350 TOTAL ASSETS 222,962 212,585 68,861 68,350

The annexed notes form an integral part of these financial statements. Page 15 The annexed notes form an integral part of these financial statements. Page 15 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 71 ANNUAL REPORT 2021

Statements of Financial Position as at 31 March 2021 RESINTECH BERHAD (cont’d) (IncorporatedRESINTECH in Malaysia)BERHAD Registration(Incorporated No: in Malaysia)199501012460 (341662 - X) Registration No: 199501012460 (341662 - X) STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2021 (CONT’D) STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2021 (CONT’D)

The Group The Company 2021 The Group 2020 2021 The Company 2020 NOTE RM'0002021 RM'0002020 RM'0002021 RM'0002020 NOTE RM'000 RM'000 RM'000 RM'000 EQUITY AND LIABILITIES EQUITY AND LIABILITIES EQUITY ShareEQUITY capital 18 68,602 68,602 68,602 68,602 FairShare value capital reserve 1918 68,6024,711 68,602 5,481 68,602- 68,602- RevaluationFair value reserve reserve 2019 43,5334,711 46,667 5,481 - - RevaluationReserve relating reserve to asset held 20 43,533 46,667 - - Reservefor sale relating to asset held 17 3,857 3,857 - - Foreignfor sale exchange translation 17 3,857 3,857 - - Foreignreserve exchange translation 21 (513) (40) - - Retainedreserve profits/ 21 (513) (40) - - Retained(Accumulated profits/ losses) 44,091 38,235 154 (327) (Accumulated losses) 44,091 38,235 154 (327)

TOTAL EQUITY 164,281 162,802 68,756 68,275 TOTAL EQUITY 164,281 162,802 68,756 68,275

NON-CURRENT LIABILITIES NON-CURRENTLong-term borrowings LIABILITIES 22 5,119 4,355 - - DeferredLong-term tax borrowings liabilities 2225 18,5335,119 19,227 4,355 - - Deferred tax liabilities 25 18,533 19,227 - -

23,652 23,582 - - 23,652 23,582 - -

CURRENT LIABILITIES TradeCURRENT payables LIABILITIES 26 7,232 2,414 - - OtherTrade payablespayables and accruals 2726 6,8177,232 3,6572,414 105- 75- CurrentOther payables tax liabilities and accruals 27 6,8171,802 3,6571,200 105- 75- Short-termCurrent tax borrowingsliabilities 28 18,1371,802 12,3191,200 - - BankShort-term overdrafts borrowings 2829 18,137- 12,3195,570 - - Bank overdrafts 29 - 5,570 - -

33,988 25,160 105 75 33,988 25,160 105 75 Liabilities classified as held for sale 17 1,041 1,041 - - Liabilities classified as held for sale 17 1,041 1,041 - -

TOTAL LIABILITIES 58,681 49,783 105 75 TOTAL LIABILITIES 58,681 49,783 105 75

TOTAL EQUITY AND LIABILITIES 222,962 212,585 68,861 68,350 TOTAL EQUITY AND LIABILITIES 222,962 212,585 68,861 68,350

The annexed notes form an integral part of these financial statements. Page 16 The annexed notes form an integral part of these financial statements. Page 16 RESINTECH BERHAD 72 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

STATEMENTSRESINTECH BERHADOF PROFIT OR LOSS (Incorporated in Malaysia) ANDRegistrationRESINTECH OTHER No: COMPREHENSIVEBERHAD199501012460 (341662 INCOME- X) for (Incorporated the Financial inYear Malaysia) Ended 31March 2021 STATEMENTSRegistration No: 199501012460 OF PROFIT OR(341662 LOSS - X) AND OTHER COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021 The Group The Company 2021 2020 2021 2020 NOTE RM'000The Group RM'000 RM'000 The Company RM'000 2021 2020 2021 2020 REVENUE NOTE 30 RM'000 78,783 RM'000 79,716 RM'000 4,600 RM'000 1,500

REVENUECOST OF SALES 30 (58,602) 78,783 (60,433) 79,716 4,600- 1,500-

COST OF SALES (58,602) (60,433) - - GROSS PROFIT 20,181 19,283 4,600 1,500

GROSSOTHER INCOMEPROFIT 31 20,181 2,785 19,2833,287 4,600 10 1,500 68

OTHER INCOME 31 2,785 3,287 10 68 22,966 22,570 4,610 1,568

22,966 22,570 4,610 1,568 SELLING AND DISTRIBUTION EXPENSES (3,059) (2,145) - - ADMINISTRATIVESELLING AND DISTRIBUTION EXPENSES (7,309) (8,800) (336) (507) OTHER EXPENSES EXPENSES (3,302)(3,059) (3,472)(2,145) - - FINANCEADMINISTRATIVE COSTS EXPENSES (7,309)(1,164) (8,800)(1,499) (336)- (507)- NETOTHER IMPAIRMENT EXPENSES LOSSES ON (3,302) (3,472) - - FINANCEFINANCIAL COSTS ASSETS 32 (1,164) (100) (1,499)(550) - -

NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS 32 (14,934) (100) (16,466)(550) (336)- (507)-

(14,934) (16,466) (336) (507) PROFIT BEFORE TAXATION 33 8,032 6,104 4,274 1,061

PROFITINCOME BEFORE TAX EXPENSE TAXATION 3334 (2,165) 8,032 (2,093)6,104 4,274 (20) 1,061 (8)

INCOME TAX EXPENSE 34 (2,165) (2,093) (20) (8) PROFIT AFTER TAXATION 5,867 4,011 4,254 1,053

PROFITOTHER COMPREHENSIVEAFTER TAXATION 5,867 4,011 4,254 1,053 35 INCOME OTHER COMPREHENSIVE 35 INCOME Item that Will Not be Reclassified Subsequently Itemto Profit that orWill Loss Not be - Reclassified Revaluation Subsequentlyof property, toplant Profit and or Lossequipment - 19,595 - - - Revaluation of property, - Fair value changes of equity plant and equipment - 19,595 investments (142) (194) - - - Fair value changes of equity Iteminvestments that Will be Reclassified (142) (194) - - Subsequently to Profit or Loss -Item Foreign that Willcurrency be Reclassified translation Subsequently differences to Profit or Loss (473) 456 - - - Foreign currency translation

differences (473) 456 TOTAL OTHER COMPREHENSIVE - - (LOSS)/INCOME (615) 19,857 - - TOTAL OTHER COMPREHENSIVE

(LOSS)/INCOME (615) 19,857 - - TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL TOTALYEAR COMPREHENSIVE 5,252 23,868 4,254 1,053 INCOME FOR THE FINANCIAL YEAR 5,252 23,868 4,254 1,053

The annexed notes form an integral part of these financial statements. Page 17

The annexed notes form an integral part of these financial statements. Page 17 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 73 ANNUAL REPORT 2021

RESINTECHStatements of ProfitBERHAD or Loss and Other Comprehensive Income for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) RegistrationRESINTECH No: BERHAD199501012460 (341662 - X) (Incorporated in Malaysia) STATEMENTSRegistration No: 199501012460 OF PROFIT OR(341662 LOSS - X) AND OTHER COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021 (CONT’D) STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021 (CONT’D) The Group The Company 2021 2020 2021 2020 NOTE RM'000 The Group RM'000 RM'000The Company RM'000 2021 2020 2021 2020 PROFIT AFTER TAXATION NOTE RM'000 RM'000 RM'000 RM'000 ATTRIBUTABLE TO:- PROFITOwners ofAFTER the Company TAXATION 5,867 4,011 4,254 1,053 ATTRIBUTABLE TO:- Owners of the Company 5,867 4,011 4,254 1,053 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TOTALTO:- COMPREHENSIVE OwnersINCOME of ATTRIBUTABLEthe Company 5,252 23,868 4,254 1,053 TO:- Owners of the Company 5,252 23,868 4,254 1,053 EARNINGS PER SHARE (SEN): 36 EARNINGS- Basic PER SHARE 4.28 2.92 -(SEN): Diluted 36 4.28 2.92 - Basic 4.28 2.92 - Diluted 4.28 2.92

The annexed notes form an integral part of these financial statements. Page 18

The annexed notes form an integral part of these financial statements. Page 18 RESINTECH BERHAD 74 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

STATEMENTS OF 19

CHANGES IN EQUITY - 21

for the Financial Year Ended 31March 2021 456 (194) Page Page 4,011 Total 19,595 23,868 Equity RM'000 138,913 162,802 ------21 - 19 (21) - Non 21 RM'000 Interests 456 (194) Page Page Controlling 4,011 Total 19,595 23,868 Equity RM'000 138,913 162,802 - - 456 (194) ------4,011 21 19,595 23,868 - (21) Of The RM'000 138,934 162,802 Company To Owners Attributable Non RM'000 Interests Controlling - - - - able - - 775 456 4,011 4,786 (194) 33,449 38,235 4,011 Profits RM'000 19,595 23,868 Retained Of The RM'000 138,934 162,802 Distribut Company To Owners Attributable > - - - - able - - - - - 775 (40) 4,011 4,786 456 456 (496) 33,449 38,235 Profits RM'000 Retained Distribut Foreign RM'000 Reserve Exchange Translation > - - - - - (40) 456 456 (496) ------Foreign RM'000 Reserve Exchange ------Translation 3,857 3,857 Reserve RM'000 For Sale Relating To Asset Held ------Distributable 3,857 3,857 - Reserve - - - - RM'000 For Sale Relating To Asset Held Non (775) 27,847 19,595 18,820 46,667 RM'000 Reserve Distributable Revaluation - - - - - Non (775) 27,847 19,595 18,820 46,667 RM'000 Reserve Revaluation - - - - - (194) (194) 2021 5,675 5,481 Fair Value RM'000 Reserve ------< (194) (194) 2021 5,675 5,481 Fair Value RM'000 Reserve ------MARCH ------< X) 31 68,602 68,602 Share MARCH ------Capital RM'000 X) EQUITY 31 68,602 68,602 Share Capital RM'000 IN EQUITY ENDED IN ENDED YEAR a) YEAR CHANGES a) CHANGES OF OF : 2020 : 2019 2020 FINANCIAL 2019 year FINANCIAL year THE THE differences equipment investments differences equipment investments Foreign currency translation reserve revaluation of Realisation Revaluation of property, plant and and plant property, of Revaluation equity of changes value Fair Foreign currency translation reserve revaluation of Realisation Revaluation of property, plant and and plant property, of Revaluation equity of changes value Fair financial year the financial year the financial financial year the financial year the financial FOR RESINTECH BERHAD (Incorporated Malaysi in STATEMENTS Group The Balance at 1.4. Profit after taxation for the Other comprehensive income for - - - - Total comprehensive income for Strikesubsidiaries off of Balance at 31.3. statements. financial of these part integral an form notes annexed The Registration No: 199501012460 (341662 - FOR RESINTECH BERHAD (Incorporated Malaysi in Registration No: 199501012460 (341662 - STATEMENTS Group The Balance at 1.4. Profit after taxation for the Other comprehensive income for - - - - Total comprehensive income for Strikesubsidiaries off of Balance at 31.3. statements. financial of these part integral an form notes annexed The RESINTECH BERHAD Registration No. 199501012460 (341662-X) 75 ANNUAL REPORT 2021

Statements of Changes in Equity for the Financial Year Ended 31 March 2021 (cont’d)

- - - 7

Page 20 (473) (142) (142) 5,252 5,86 (3,773) (3,773) Total Equity 162,802

- - 7

721 628 - - -

7

2,413 6,588 5,86 (3,773) (3,773) 38,235

Page 20 (473) (142) (142) 5,252 5,86 Retained (3,773) (3,773) Total Equity 162,802

------7

(40) 721 628

(513) (513) 44,091 164,281 (473) (473) (473) 2,413 6,588 5,86 (3,773) (3,773) 38,235 Retained Translation

------

------

(40) (513) (513) 44,091 164,281 (473) (473) (473)

3,857 3,857 Translation Reserve Foreign Foreign Reserve Relating To To Relating Exchange Asset Held

------

- - - - -

3,857 3,857

Reserve Foreign Foreign Reserve (721) (721) (721) Relating To To Relating Exchange Asset Held (2,413) (2,413) 46,667 Revaluation

- - - - -

(721) (721) (721) (721)

- - - - -

(2,413) (2,413)

46,667 81

Revaluation (628) 5,4 Fair Value

- - - - -

81

(628) - - - (142) - (142) - (142) - - - -

5,4 Fair Value

> ------Non-Distributable ------< Distributable are 68,602 4,711 43,533 68,602 Sh

- - - (142) - - - - - (142) - (142)

(CONT’D)

> ------Non-Distributable ------< Distributable are

Capital Reserve Reserve For Sale Reserve Profits Reserve Reserve For Capital

68,602 4,711 43,533

68,602 Sh 39 NOTE RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 NOTE

2021

(CONT’D)

Capital Reserve Reserve For Sale Reserve Profits Reserve Reserve For Capital

39 NOTE RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 NOTE

2021

MARCH

31

MARCH

EQUITY

31

IN

EQUITY ENDED

IN

ENDED

YEAR

differences

YEAR CHANGES

differences 2020

CHANGES

2020 OF /1.4.

OF /1.4.

2020 FINANCIAL 2020

FINANCIAL

THE

THE

isposal of equity investment of isposal Foreign currencyForeign translation

isposal of equity investment of isposal Foreign currencyForeign translation investments equity of changes value Fair - Amortisation of revaluation reserve Other comprehensive income for the financial year: comprehensivethe incomeforOther FOR

RESINTECH BERHAD RESINTECH Malaysia) in (Incorporated Registration 199501012460 No: X) (341662 - STATEMENTS Group The 31.3. at Balance year the financial for Profit taxation after - - Realisationof revaluationreserve financialyear comprehensive for the income Total D Company: the of owners to distribution and by Contributions Dividends - 31.3.2021 at Balance The annexed notes form integral an part of these financial statements.

Amortisation of revaluation reserve

FOR

RESINTECH BERHAD RESINTECH Malaysia) in (Incorporated Registration 199501012460 No: X) (341662 - STATEMENTS Group The 31.3. at Balance year the financial for Profit taxation after financial year: comprehensivethe incomeforOther - - Realisationof revaluationreserve investments equity of changes value Fair - financialyear comprehensive for the income Total D Company: the of owners to distribution and by Contributions Dividends - 31.3.2021 at Balance The annexed notes form integral an part of these financial statements. RESINTECH BERHAD 76 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHStatements of Changes BERHAD in Equity for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) RegistrationRESINTECH No: BERHAD199501012460 (341662 - X) (Incorporated in Malaysia) STATEMENTSRegistration No: 199501012460OF CHANGES (341662IN EQUITY - X) FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021 (CONT’D) STATEMENTS OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021 (CONT’D) (Accumulated Share Losses)/ Total Capital Retained(AccumulatedProfit Equity NOTE RM'000Share LRM'000osses)/ RM'000Total Capital Retained Profit Equity The Company NOTE RM'000 RM'000 RM'000

BalanceThe Company at 1.4.2019 68,602 (1,380) 67,222

ProfitBalance after at taxation/Total1.4.2019 comprehensive 68,602 (1,380) 67,222 income for the financial year - 1,053 1,053 Profit after taxation/Total comprehensive Balanceincome forat 31.3.the financial2020/1.4. year2020 68,602- 1,053(327) 68,2751,053

ProfitBalance after at taxation/Total31.3.2020/1.4. comprehensive2020 68,602 (327) 68,275 income for the financial year - 4,254 4,254 Profit after taxation/Total comprehensive Contributionsincome for the by financial and distribution year to owners - 4,254 4,254 of the Company: -ContributionsDividends by and distribution to owners 39 - (3,773) (3,773) of the Company: Balance- Dividend ats 31.3.2021 39 68,602- (3,154773) 68,(3,773756) Balance at 31.3.2021 68,602 154 68,756

The annexed notes form an integral part of these financial statements. Page 21

The annexed notes form an integral part of these financial statements. Page 21 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 77 ANNUAL REPORT 2021

RESINTECH BERHAD STATEMENTS OF (Incorporated in Malaysia) RegistrationRESINTECH No: BERHAD199501012460 (341662 - X) CASH FLOWS (Incorporated in Malaysia) for the Financial Year Ended 31March 2021 STATEMENTSRegistration No: 199501012460 OF CASH FLOWS (341662 - X)

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021 STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021 The Group The Company 2021 2020 2021 2020 RM'000 The Group RM'000 RM'000The Company RM'000 2021 2020 2021 2020 CASH FLOWS FROM/(FOR) RM'000 RM'000 RM'000 RM'000 OPERATING ACTIVITIES CASHProfit before FLOWS taxation FROM/(FOR) 8,032 6,104 4,274 1,061 OPERATING ACTIVITIES AdjustmentsProfit before taxationfor:- 8,032 6,104 4,274 1,061 Allowance for impairment losses on Adjustmentstrade receivables for:- 433 908 - - BadAllowance debts writtenfor impairment off losses on 273 - - - Depreciation trade receivables of: 433 908 - - -Bad property, debts writtenplant and off equipment 4,476273 2,637- - - -Depreciation right-of-use of:assets 1,911 1,522 - - (Gain)/Loss- property, plant on disposal and equipment of: 4,476 2,637 - - - right-of-usea subsidiary assets 1,911(100) 1,522- - - -(Gain)/Loss investment on properties disposal of: 754 1,109 - - - property,a subsidiary plant and equipment (100)(22) - - - Interest- investment expense properties on financial liabilities not 754 1,109 - - -at property, fair value plant and equipment 1,034(22) 1,374- - - Interest expense on leasefinancial liabilities liabilities not 67 124 - - Loss at fair on value disposal of equity investments 1,034 68 1,374- - - InterestNet (gain)/loss expense on on unrealised lease liabilities foreign 67 124 - - Loss exchange on disposal of equity investments (395) 68 106- - - NetProperty, (gain)/loss plant onand unrealised equipment foreign writtenexchange off (395)2 576106 - - StrikeProperty, off ofplant subsidiaries and equipment - 21 - - Dividendwritten off income (40)2 576(4) (4,600)- (1,500)- StrikeFair value off of gain subsidiaries on investment - 21 - - Dividendproperties income (386)(40) (1,396)(4) (4,600)- (1,500)- InterestFair value income gain on investment (197) (139) - - Reversal properties of impairment loss on trade (386) (1,396) - - Interestreceivables income (197)(606) (139)(174) - -

Reversal of impairment loss on trade Operatingreceivables profit/(loss) before (606) (174) - -

working capital changes 15,304 12,768 (326) (439) (Increase)DecreaseOperating profit/(loss) in beforeinventories (3,831) 2,130 - - (Increase)/ working capital Decrease changes in trade and 15,304 12,768 (326) (439) (Increase)Decreaseother receivables in inventories (3,831)(1,491) (2,101)2,130 61- (66)- Increase/(Decrease)(Increase)/ Decrease in in trade trade andand other payablesother receivables (1,491)6,225 (2,101)(263) 6130 (66)24 Increase/(Decrease)Repayment from subsidiaries in trade and other - - 1,907 329

payables 6,225 (263) 30 24 RepaymentCASH FROM/(FOR) from subsidiaries OPERATIONS 16,207- 12,534- 1,6721,907 (152) 329

Income tax paid (2,294) (653) (13) (13) CASHInterest FROM/(FOR) paid OPERATIONS 16,207(1,101) 12,534(1,498) 1,672- (152)-

Income tax paid (2,294) (653) (13) (13) InterestNET CASH paid FROM/(FOR) (1,101) (1,498) - -

OPERATING ACTIVITIES NETCARRIED CASH FORWARD FROM/(FOR) 12,812 10,383 1,659 (165) OPERATING ACTIVITIES CARRIED FORWARD 12,812 10,383 1,659 (165)

The annexed notes form an integral part of these financial statements. Page 22

The annexed notes form an integral part of these financial statements. Page 22 RESINTECH BERHAD 78 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHStatements of Cash BERHAD Flows for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) RegistrationRESINTECH No: BERHAD199501012460 (341662 - X) (Incorporated in Malaysia) STATEMENTSRegistration No: 199501012460OF CASH FLOWS (341662 - X) FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021 (CONT’D) STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021 (CONT’D) The Group The Company 2021 2020 2021 2020 NOTE RM'000 The Group RM'000 RM'000The CompanyRM'000 2021 2020 2021 2020 NET CASH FROM/(FOR) NOTE RM'000 RM'000 RM'000 RM'000 OPERATING ACTIVITIES NETBROUGHT CASH FFORWARDROM/(FOR) 12,812 10,383 1,659 (165) OPERATING ACTIVITIES CASHBROUGHT FLOWS FORWARD (FOR)/FROM 12,812 10,383 1,659 (165) INVESTING ACTIVITIES AcquisitionCASH FLOWS of a (FOR)/FROMsubsidiary, net of cashINVESTING and cash ACTIVITIES equivalents Acquisitionacquired of a subsidiary, net of 37 (210) - (210) - Proceedscash and fromcash disposalequivalents of: -acquiredinvestment properties 37 4,90(2106) 2,489- (210)- - -Proceedsother investments from disposal of: 1,038 - - - - property,investment plant properties and equipment 4,90246 2,489304 - - Disposal- other investments of a subsidiary, net of 1,038 - - - -cashproperty, and cash plant equivalents and equipment 24 304 - - Disposaldisposed of of a subsidiary, net of 38 100 - - - Dividendcash and received cash equivalents 40 4 4,600 1,500 Interestdisposed received of 38 197100 139- - - AdditionalDividend received investments in an 40 4 4,600 1,500 Interestexisting received subsidiary 197- 139- (1,800)- (500)- PurchaseAdditional ofinvestments right-of-use in assets an 40(a) (4,614) (572) - - Purchaseexisting subsidiary of other investments - (72)- (1,800)- (500)(72) Purchase of rightproperty,-of-use plant assets 40(a) (4,614) (572) - - Purchaseand equipment of other investments 40(a) (4,458)- (3,826)(72) - (72)- PlacementPurchase of ofproperty, fixed deposits plant with tenureand equipment more than 3 months 40(a) (4,458)(130) (3,826)(159) - - Placement of fixed deposits with NETtenure CASH more (FOR)/FROM than 3 months (130) (159) - - INVESTING ACTIVITIES (3,107) (1,693) 2,590 928 NET CASH (FOR)/FROM CASHINVESTING FLOWS ACTIVITIES FROM/(FOR) (3,107) (1,693) 2,590 928 FINANCING ACTIVITIES DrawdownCASH FLOWS of bills FROM/( payableFOR) 40(d) 35,301 35,033 - - DrawdownFINANCING of ACTIVITIESterm loans 40(d) 3,502 1,529 - - DividendDrawdowns paid of bills payable 40(d) 35,301(3,773) 35,033- (3,773)- - RepaymentDrawdown of of term bills loanspayable 40(d) (30,710)3,502 (39,076)1,529 - - RDividendepayments paid of lease liabilities 40(d) (3,773)(628) (929)- (3,773)- - RRepaymentepayment of billsterm payable loans 40(d) (30,710)(1,266) (39,076)(977) - - Repayment of lease liabilities 40(d) (628) (929) - - NETRepayment CASH FROM/(of term loansFOR) 40(d) (1,266) (977) - - FINANCING ACTIVITIES 2,426 (4,420) (3,773) - NET CASH FROM/(FOR) NETFINANCING INCREASE ACTIVITIES IN CASH 2,426 (4,420) (3,773) - AND CASH EQUIVALENTS 12,131 4,270 476 763 NET INCREASE IN CASH EFFECTSAND CASHOF EQUIVALENTS FOREIGN EXCHANGE 12,131 4,270 476 763 TRANSLATION 463 84 - - EFFECTS OF FOREIGN EXCHANGE CASHTRANSLATION AND CASH EQUIVALENTS 463 84 - - AT BEGINNING OF THE CASHFINANCIAL AND CASH YEAR EQUIVALENTS 4,299 (55) 839 76 AT BEGINNING OF THE CASHFINANCIAL AND CASH YEAR 4,299 (55) 839 76 EQUIVALENTS AT END OF CASHTHE FINANCIAL AND CASH YEAR 40(b) 16,893 4,299 1,315 839 EQUIVALENTS AT END OF THE FINANCIAL YEAR 40(b) 16,893 4,299 1,315 839 The annexed notes form an integral part of these financial statements. Page 23

The annexed notes form an integral part of these financial statements. Page 23 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 79 ANNUAL REPORT 2021

RESINTECH BERHAD NOTES TO THE (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X) FINANCIAL STATEMENTS for the Financial Year Ended 31March 2021 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

1. GENERAL INFORMATION

The Company is a public limited liability company, incorporated and domiciled in Malaysia. The registered office, which is also the principal place of business, is at Lot 3 & 5, Jalan Waja 14, Kawasan Perindustrian Telok Panglima Garang, 42500 Telok Panglima Garang, Selangor Darul Ehsan.

The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors dated 25 August 2021.

2. PRINCIPAL ACTIVITIES

The Company is principally engaged in the business of investment holding and the provision of management services. The principal activities of the subsidiaries are set out in Note 5 to the financial statements. There have been no significant changes in the nature of these activities during the financial year.

3. BASIS OF PREPARATION

The financial statements of the Group are prepared under the historical cost convention and modified to include other bases of valuation as disclosed in other sections under significant accounting policies, and in compliance with Malaysian Financial Reporting Standards (“MFRSs”), International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.

3.1 During the current financial year, the Group has adopted the following new accounting standards and/or interpretations (including the consequential amendments, if any):-

MFRSs and/or IC Interpretations (Including The Consequential Amendments) Amendments to MFRS 3: Definition of a Business Amendments to MFRS 4: Extension of the Temporary Exemption from Applying MFRS 9 Amendments to MFRS 9, MFRS 139 and MFRS 7: Interest Rate Benchmark Reform Amendments to MFRS 101 and MFRS 108: Definition of Material Amendments to References to the Conceptual Framework in MFRS Standards

The adoption of the above accounting standards and/or interpretations (including the consequential amendments, if any) did not have any material impact on the Group’s financial statements.

Page 24 RESINTECH BERHAD 80 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

3. BASIS OF PREPARATION (CONT’D)

3.2 The Group has not applied in advance the following accounting standards and/or interpretations (including the consequential amendments, if any) that have been issued by the Malaysian Accounting Standards Board (MASB) but are not yet effective for the current financial year:-

MFRSs and/or IC Interpretations (Including The Consequential Amendments) Effective Date MFRS 17 Insurance Contracts 1 January 2023 Amendments to MFRS 3: Reference to the Conceptual Framework 1 January 2022 Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16: Interest Rate Benchmark Reform – Phase 2 1 January 2021 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred Amendment to MFRS 16: Covid-19-Related Rent Concessions 1 June 2020 Amendment to MFRS 16: Covid-19-Related Rent Concessions beyond 30 June 2021 1 April 2021 Amendments to MFRS 17 Insurance Contracts 1 January 2023 Amendment to MFRS 101: Classification of Liabilities as Current or Non-current 1 January 2023 Amendments to MFRS 101: Disclosure of Accounting Policies 1 January 2023 Amendments to MFRS 108: Definition of Accounting Estimates 1 January 2023 Amendments to MFRS 112: Deferred Tax related to Assets and Liabilities arising from a Single Transaction 1 January 2023 Amendments to MFRS 116: Property, Plant and Equipment – Proceeds before Intended Use 1 January 2022 Amendments to MFRS 137: Onerous Contracts – Cost of Fulfilling a Contract 1 January 2022 Annual Improvements to MFRS Standards 2018 – 2020 1 January 2022

The adoption of the above accounting standards and/or interpretations (including the consequential amendments, if any) is expected to have no material impact on the financial statements of the Group upon their initial application.

Page 25 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 81 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES

4.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The outbreak of the COVID-19 has brought unprecedented challenges and added economic uncertainties in Malaysia and markets in which the Group operates. While the Group has considered the potential financial impact of the COVID-19 pandemic in the preparation of these financial statements, the full financial impact to the Group remains uncertain. Accordingly, there is a possibility that factors not currently anticipated by management could occur in the future and therefore affect the recognition and measurement of the Group’s assets and liabilities at the reporting date.

Key Sources of Estimation Uncertainty

Management believes that there are no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year other than as disclosed below:-

(a) Depreciation of Property, Plant and Equipment

The estimates for the residual values, useful lives and related depreciation charges for the property, plant and equipment are based on commercial factors which could change significantly as a result of technical innovations and competitors’ actions in response to the market conditions. The Group anticipates that the residual values of its property, plant and equipment will be insignificant. As a result, residual values are not being taken into consideration for the computation of the depreciable amount. Changes in the expected level of usage and technological development could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised. The carrying amount of property, plant and equipment as at the reporting date is disclosed in Note 6 to the financial statements.

(b) Property and Right-Of-Use assets under Revaluation

Certain properties and right-of-use assets of the Group are reported at revalued amounts which are based on valuations performed by independent professional valuers by reference to the selling prices of recent transactions and asking prices of similar properties of nearby location and where necessary, adjusting for tenure, location, size, and market trends. Other factors such as model assumptions, market dislocations and unexpected correlations can also materially affect these estimates and the resulting valuations. The carrying amounts of property and right-of-use assets measured at revaluation as at the reporting date are disclosed in Notes 6 and 8 to the financial statements.

Page 26 RESINTECH BERHAD 82 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D)

Key Sources of Estimation Uncertainty (Cont’d)

(c) Valuation of Investment Properties

Investment properties of the Group are reported at fair value which is based on valuations performed by independent professional valuers.

The independent professional valuers have exercised judgement in determining the selling prices of recent transactions and asking prices of similar properties of nearby location and where necessary, adjusting for tenure, location, size, and market trends used in the valuation process. Also, judgement has been applied in estimating prices for less readily observable external parameters. Other factors such as model assumptions, market dislocations and unexpected correlations can also materially affect these estimates and the resulting fair value. The carrying amount of investment properties as at the reporting date is disclosed in Note 7 to the financial statements.

(d) Impairment of Property, Plant and Equipment, Investment Properties and Right-Of-Use Assets

The Group determines whether an item of its property, plant and equipment, investment properties and right-of-use assets are impaired by evaluating the extent to which the recoverable amount of the asset is less than its carrying amount. This evaluation is subject to changes such as market performance, economic and political situation of the country. A variety of method is used to determine the recoverable amount, such as valuation reports and discounted cash flows. For discounted cash flows, significant judgement is required in the estimation of the present value of future cash flows generated by the assets, which involve uncertainties and are significantly affected by assumptions used and judgements made regarding estimates of future cash flows and discount rates which are subject to higher degree of estimation uncertainties due to uncertainty on how the COVID-19 pandemic may progress and evolve and volatility in markets in which the Group operates.

Page 27 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 83 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D)

Key Sources of Estimation Uncertainty (Cont’d)

(e) Fair Value Estimates for Unquoted Financial Assets

The Group carries certain financial assets that are not traded in an active market at fair value. The Group uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. The amount of fair value changes would differ if the Group uses different valuation methodologies and assumptions, and eventually affect profit and/or other comprehensive income. The carrying amount of these financial assets as at the reporting date is disclosed in Note 10 to the financial statements.

(f) Write-down of Inventories

Reviews are made periodically by management on damaged, obsolete and slow- moving inventories. These reviews require judgement and estimates. Possible changes in these estimates could result in revisions to the valuation of inventories. The carrying amount of inventories as at the reporting date is disclosed in Note 11 to the financial statements.

(g) Impairment of Trade Receivables

The Group uses the simplified approach to estimate a lifetime expected credit loss allowance for all trade receivables. The Group develops the expected loss rates based on the payment profiles of past sales including changes in the customer payment profile in response to the COVID-19 pandemic and the corresponding historical credit losses, and adjusts for qualitative and quantitative reasonable and supportable forward-looking information. If the expectation is different from the estimation, such difference will impact the carrying values of trade receivables. The carrying amount of trade receivables as at the reporting date is disclosed in Note 12 to the financial statements.

(h) Income Taxes

There are certain transactions and computations for which the ultimate tax determination may be different from the initial estimate. The Group recognises tax liabilities based on its understanding of the prevailing tax laws and estimates of whether such taxes will be due in the ordinary course of business. Where the final outcome of these matters is different from the amounts that were initially recognised, such difference will impact the income tax expense and deferred tax balances in the year in which such determination is made.

Page 28 RESINTECH BERHAD 84 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D)

Key Sources of Estimation Uncertainty (Cont’d)

(i) Purchase Price Allocation

Purchase prices related to business combinations are allocated to the underlying acquired assets and liabilities based on their estimated fair value at the time of acquisition. The determination of fair value required the Group to make assumptions, estimates and judgements regarding future events. The allocation process is inherently subjective and impacts the amount assigned to individually identifiable assets and liabilities. As a result, the purchase price allocation impacts the Group’s reported assets (including goodwill) and liabilities, future net earnings due to the impact on future depreciation and amortisation expense and impairment tests. The fair values of the assets acquired and liabilities assumed under the business combinations made during the current financial year is disclosed in Note 37 to the financial statements.

Critical Judgements Made in Applying Accounting Policies

Management believes that there are no instances of application of critical judgement in applying the Group’s accounting policies which will have a significant effect on the amounts recognised in the financial statements other than as disclosed below:-

(a) Classification between Investment Properties and Owner-occupied Properties

Some properties comprise a portion that is held to earn rentals or for capital appreciation and another portion that is held for use in the production or supply of goods or services or for administrative purposes. If these portions could be sold separately (or leased out separately under a finance lease), the Group accounts for the portions separately. If the portions could not be sold separately, the property is an investment property only if an insignificant portion is held for use in the production or supply of goods or services or for administrative purposes.

Judgement is made on an individual property basis to determine whether ancillary services are so significant that a property does not qualify as investment properties.

Page 29 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 85 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D)

Critical Judgements Made in Applying Accounting Policies (Cont’d)

(b) Lease Terms

Some leases contain extension options exercisable by the Group before the end of the non-cancellable contract period. In determining the lease term, management considers all facts and circumstances including the past practice and any cost that will be incurred to change the asset if an option to extend is not taken. An extension option is only included in the lease term if the lease is reasonably certain to be extended (or not terminated).

In determining the incremental borrowing rate of the respective leases. The Group first determines the closest available borrowing rates before using significant judgement to determine the adjustments required to reflect the term, security, value or economic environment of the respective leases.

4.2 BASIS OF CONSOLIDATION

The consolidated financial statements include the financial statements of the Company and its subsidiaries made up to the end of the reporting period.

Subsidiaries are entities controlled by the Group. 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. Potential voting rights are considered when assessing control only when such rights are substantive. The Group also considers it has de facto power over an investee when, despite not having the majority of voting rights, it has the current ability to direct the activities of the investee that significantly affect the investee’s return.

Subsidiaries are consolidated from the date on which control is transferred to the Group up to the effective date on which control ceases, as appropriate.

Intragroup transactions, balances, income and expenses are eliminated on consolidation. Intragroup losses may indicate an impairment that requires recognition in the consolidated financial statements. Where necessary, adjustments are made to the financial statements of subsidiaries to ensure consistency of accounting policies with those of the Group.

Page 30 RESINTECH BERHAD 86 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.2 BASIS OF CONSOLIDATION (CONT’D)

(a) Business Combinations

Acquisitions of businesses are accounted for using the acquisition method. Under the acquisition method, the consideration transferred for acquisition of a subsidiary is the fair value of the assets transferred, liabilities incurred and the equity interests issued by the Group at the acquisition date. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs, other than the costs to issue debt or equity securities, are recognised in profit or loss when incurred.

In a business combination achieved in stages, previously held equity interests in the acquiree are remeasured to fair value at the acquisition date and any corresponding gain or loss is recognised in profit or loss.

Non-controlling interests in the acquiree may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets at the date of acquisition. The choice of measurement basis is made on a transaction-by-transaction basis.

(b) Non-controlling Interests

Non-controlling interests are presented within equity in the consolidated statement of financial position, separately from the equity attributable to owners of the Company. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income is attributed to non-controlling interests even if this results in the non- controlling interests having a deficit balance.

(c) Changes in Ownership Interests in Subsidiaries without Change of Control

All changes in the parent’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of consideration paid or received is recognised directly in equity of the Group.

Page 31 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 87 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.2 BASIS OF CONSOLIDATION (CONT’D)

(d) Loss of Control

Upon the loss of control of a subsidiary, the Group recognises any gain or loss on disposal in profit or loss which is calculated as the difference between:-

(i) the aggregate of the fair value of the consideration received and the fair value of any retained interest in the former subsidiary; and

(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the former subsidiary and any non-controlling interests.

Amounts previously recognised in other comprehensive income in relation to the former subsidiary are accounted for in the same manner as would be required if the relevant assets or liabilities were disposed of (i.e. reclassified to profit or loss or transferred directly to retained profits). The fair value of any investments retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under MFRS 9 or, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.

4.3 FUNCTIONAL AND FOREIGN CURRENCIES

(a) Functional and Presentation Currency

The individual financial statements of each entity in the Group are presented in the currency of the primary economic environment in which the entity operates, which is the functional currency.

The consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s functional and presentation currency and has been rounded to the nearest thousand, unless otherwise stated.

(b) Foreign Currency Transactions and Balances

Transactions in foreign currencies are converted into the respective functional currencies on initial recognition, using the exchange rates at the transaction dates. Monetary assets and liabilities at the end of the reporting period are translated at the exchange rates ruling as of that date. Non-monetary assets and liabilities are translated using exchange rates that existed when the values were determined. All exchange differences are recognised in profit or loss.

Page 32 RESINTECH BERHAD 88 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.3 FUNCTIONAL AND FOREIGN CURRENCIES (CONT’D)

(c) Foreign Operations

Assets and liabilities of foreign operations (including any goodwill and fair value adjustments arising on acquisition) are translated to the Group’s presentation currency at the exchange rates at the end of the reporting period. Income, expenses and other comprehensive income of foreign operations are translated at exchange rates at the dates of the transactions. All exchange differences arising from translation are taken directly to other comprehensive income and accumulated in equity; attributed to the owners of the Company and non-controlling interests, as appropriate.

Goodwill and fair value adjustments arising from the acquisition of foreign operations are treated as assets and liabilities of the foreign operations and are recorded in the functional currency of the foreign operations and translated at the closing rate at the end of the reporting period.

On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign subsidiary, or a partial disposal involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that foreign operation attributable to the owners of the Company are reclassified to profit or loss as part of the gain or loss on disposal. The portion that related to non-controlling interests is derecognised but is not reclassified to profit or loss.

In addition, in relation to a partial disposal of a subsidiary that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are reattributed to non-controlling interests and are not recognised in profit or loss. When the Group disposes of only part of its investment in an associate that includes a foreign operation while retaining significant influence, the proportionate share of the accumulative exchange differences is reclassified to profit or loss.

In the consolidated financial statements, when the settlement of an intragroup loan is neither planned nor likely to occur in the foreseeable future, the exchange differences arising from translating such monetary item are considered to form part of a net investment in the foreign operation and are recognised in other comprehensive income.

Page 33 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 89 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.4 FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognised in the statements of financial position when the Group has become a party to the contractual provisions of the instruments.

Financial instruments are classified as financial assets, financial liabilities or equity instruments in accordance with the substance of the contractual arrangement and their definitions in MFRS 132. Interest, dividends, gains and losses relating to a financial instrument classified as a liability are reported as an expense or income. Distributions to holders of financial instruments classified as equity are charged directly to equity.

Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.

A financial instrument is recognised initially at its fair value (other than trade receivables without significant financing component which are measured at transaction price as defined in MFRS 15 at inception). Transaction costs that are directly attributable to the acquisition or issue of the financial instrument (other than a financial instrument at fair value through profit or loss) are added to/deducted from the fair value on initial recognition, as appropriate. Transaction costs on the financial instrument at fair value through profit or loss are recognised immediately in profit or loss.

Financial instruments recognised in the statements of financial position are disclosed in the individual policy statement associated with each item.

Page 34 RESINTECH BERHAD 90 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.4 FINANCIAL INSTRUMENTS (CONT’D)

(a) Financial Assets  All recognised financial assets are measured subsequently in their entirety at either amortised cost or fair value (through profit or loss, or other comprehensive income), depending on the classification of the financial assets.

Debt Instruments

(i) Amortised Cost

The financial asset is held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. Interest income is recognised by applying the effective interest rate to the gross carrying amount of the financial asset. When the asset has subsequently become credit-impaired, the interest income is recognised by applying the effective interest rate to the amortised cost of the financial asset.

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts), excluding expected credit losses, through the expected life of the financial asset or a shorter period (where appropriate).

(ii) Fair Value through Other Comprehensive Income

The financial asset is held for both collecting contractual cash flows and selling the financial asset, where the asset’s cash flows represent solely payments of principal and interest. Movements in the carrying amount are taken through other comprehensive income and accumulated in the fair value reserve, except for the recognition of impairment, interest income and foreign exchange difference which are recognised directly in profit or loss. Interest income is calculated using the effective interest rate method.

(iii) Fair Value through Profit or Loss

All other financial assets that do not meet the criteria for amortised cost or fair value through other comprehensive income are measured at fair value through profit or loss. The fair value changes do not include interest or dividend income.

The Group reclassifies debt instruments when and only when its business model for managing those assets change.

Page 35 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 91 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.4 FINANCIAL INSTRUMENTS (CONT’D)

(a) Financial Assets (Cont’d)

Equity Instruments

All equity investments are subsequently measured at fair value with gains and losses recognised in profit or loss except where the Group has elected to present the subsequent changes in fair value in other comprehensive income and accumulated in the fair value reserve at initial recognition.

The designation at fair value through other comprehensive income is not permitted if the equity investment is either held for trading or is designated to eliminate or significantly reduce a measurement or recognition inconsistency that would otherwise arise.

Dividend income from this category of financial assets is recognised in profit or loss when the Group’s right to receive payment is established unless the dividends clearly represent a recovery of part of the cost of the equity investments.

(b) Financial Liabilities

(i) Financial Liabilities at Fair Value through Profit or Loss

Fair value through profit or loss category comprises financial liabilities that are either held for trading or are designated to eliminate or significantly reduce a measurement or recognition inconsistency that would otherwise arise. The changes in fair value (excluding interest expense) of these financial liabilities are recognised in profit or loss.

(ii) Other Financial Liabilities

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

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts), through the expected life of the financial liability or a shorter period (where appropriate).

Page 36 RESINTECH BERHAD 92 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.4 FINANCIAL INSTRUMENTS (CONT’D)

(c) Equity Instruments

Equity instruments classified as equity are measured initially at cost and are not remeasured subsequently.

Ordinary shares are classified as equity and recorded at the proceeds received, net of directly attributable transaction costs.

Dividends on ordinary shares are recognised as liabilities when approved for appropriation.

(d) Derecognition

A financial asset or part of it is derecognised when, and only when, the contractual rights to the cash flows from the financial asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. On derecognition of a financial asset measured at amortised cost, the difference between the carrying amount of the asset and the sum of the consideration received and receivable is recognised in profit or loss. In addition, on derecognition of a debt instrument classified as fair value through other comprehensive income, the cumulative gain or loss previously accumulated in the fair value reserve is reclassified from equity to profit or loss. In contrast, there is no subsequent reclassification of the fair value reserve to profit or loss following the derecognition of an equity investment.

A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

(e) 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 because a specific debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.

Page 37 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 93 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.4 FINANCIAL INSTRUMENTS (CONT’D)

(e) Financial Guarantee Contracts (Cont’d)

Financial guarantee contracts are recognised initially as liabilities at fair value, net of transaction costs. Subsequent to initial recognition, financial guarantee contracts are recognised as income in profit or loss over the period of the guarantee or, when there is no specific contractual period, recognised in profit or loss upon discharge of the guarantee. If the debtor fails to make payment relating to a financial guarantee contract when it is due and the Company, as the issuer, is required to reimburse the holder for the associated loss, the liability is measured at the higher of the amount of the credit loss determined in accordance with the expected credit loss model and the amount initially recognised less cumulative amortisation.

4.5 INVESTMENTS IN SUBSIDIARIES

Investments in subsidiaries are stated at cost in the statement of financial position of the Company, and are reviewed for impairment at the end of the reporting period if events or changes in circumstances indicate that the carrying values may not be recoverable. The cost of the investments includes transaction costs.

On the disposal of the investments in subsidiaries, the difference between the net disposal proceeds and the carrying amount of the investments is recognised in profit or loss.

4.6 PROPERTY, PLANT AND EQUIPMENT

All items of property, plant and equipment are initially measured at cost. Cost includes expenditure that are directly attributable to the acquisition of the asset and other costs directly attributable to bringing the asset to working condition for its intended use.

Subsequent to initial recognition, all property, plant and equipment, other than land and buildings, are stated at cost less accumulated depreciation and any impairment losses.

Freehold land is stated at valuation less impairment losses recognised after the date of the revaluation. Buildings are stated at revalued amount less accumulated depreciation and impairment losses recognised after the date of the revaluation.

Land and buildings are revalued periodically, at least once in every five years. Surpluses arising from the revaluation are recognised in other comprehensive income and accumulated in equity under the revaluation reserve to the extent that it reverses a revaluation deficit of the same asset previously recognised in profit or loss. Deficits arising from the revaluation, to the extent that they are not supported by any previous revaluation surpluses, are recognised in profit or loss.

Page 38 RESINTECH BERHAD 94 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.6 PROPERTY, PLANT AND EQUIPMENT (CONT’D)

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when the cost is incurred and it is probable that the future economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. The carrying amount of parts that are replaced is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.

Freehold land is not depreciated. Depreciation on other property, plant and equipment is charged to profit or loss (unless it is included in the carrying amount of another asset) on a straight-line method to write off the depreciable amount of the assets over their estimated useful lives. Depreciation of an asset does not cease when the asset becomes idle or is retired from active use unless the asset is fully depreciated. The principal annual rates used for this purpose are:-

Buildings 2% Plant and machinery 10% Tools and equipment 10% - 20% Moulds 10% Furniture and fittings 10% Office equipment 10% - 12% Motor vehicles and forklifts 20% Electrical installation 10% Renovation 10% Store 20%

Capital work-in-progress included in property, plant and equipment are not depreciated as these assets are not yet available for use.

The depreciation method, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of each reporting period to ensure that the amounts, method and periods of depreciation are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the items of the property, plant and equipment. Any changes are accounted for as a change in estimate.

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.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising from derecognition of the asset, being the difference between the net disposal proceeds and the carrying amount, is recognised in profit or loss. The revaluation reserve included in equity is transferred directly to retained profits on retirement or disposal of the asset. In addition, the Group also makes an annual transfer of the revaluation reserve to retained profits as the asset is used by the Group. In such a case, the amount of the revaluation reserve transferred would be the difference between depreciation based on the revalued carrying amount of the asset and depreciation based on the asset’s original cost.

Page 39 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 95 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.7 INVESTMENT PROPERTIES

Investment properties are properties which are owned or right-to-use asset held to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes.

Investment properties which are owned are initially measured at cost. Cost includes expenditure that is directly attributable to the acquisition of the investment property. The right- of-use asset held under a lease contract that meets the definition of investment property is measured initially similarly as other right-of-use assets.

Subsequent to initial recognition, investment properties are stated at fair value with fair value changes recognised in profit or loss.

Investment properties are derecognised when they have either been disposed of or when the investment property is permanently withdrawn from use and no future benefit is expected from its disposal.

On the derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss.

Transfers are made to or from investment property only when there is a change in use. For a transfer from investment property to owner-occupied property or inventories, the fair value at the date of change becomes the cost for subsequent accounting purposes. If owner-occupied property becomes an investment property, such property shall be accounted for in accordance with the accounting policy for property, plant and equipment up to date of change in use.

4.8 LEASES

The Group assesses whether a contract is or contains a lease, at the inception of the contract. The Group recognises a right-of-use asset and corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for low-value assets and short-term leases with 12 months or less. For these leases, the Group recognises the lease payments as an operating expense on a straight-line method over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use assets that do not meet the definition of investment property and the associated lease liabilities are presented as a separate line item in the statements of financial position.

The right-of-use asset is initially measured at cost. Cost includes the initial amount of the corresponding lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred, less any incentives received.

Page 40 RESINTECH BERHAD 96 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.8 LEASES (CONT’D)

The right-of-use asset is subsequently measured at cost less accumulated depreciation and any impairment losses, and adjusted for any remeasurement of the lease liability. The depreciation starts from the commencement date of the lease. If the lease transfers ownership of the underlying asset to the Group or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. Otherwise, the Group depreciates the right-of-use asset to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of the right-of-use assets are determined on the same basis as those property, plant and equipment.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.

The lease liability is subsequently measured at amortised cost using the effective interest method. It is remeasured when there is a change in the future lease payments (other than lease modification that is not accounted for as a separate lease) with the corresponding adjustment is made to the carrying amount of the right-of-use asset or is recognised in profit or loss if the carrying amount has been reduced to zero.

4.9 INTANGIBLE ASSETS

An intangible asset shall be recognised if, and only if it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and that the cost of the asset can be measured reliably. An entity shall assess the probability of the expected future economic benefits using reasonable and supportable assumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life of the asset. An intangible asset shall be measured initially at cost.

The useful lives of intangible assets are assessed to be either finite or indefinite.

Intangible assets with finite lives are amortised over their useful economic lives and assessed for impairment whenever there is an indication that the intangible assets may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each financial period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in profit or loss in the expense category consistent with the function of the intangible asset.

Page 41 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 97 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.9 INTANGIBLE ASSETS (CONT’D)

The principal amortisation rate used for this purpose is:-

Patent rights 10 years

Intangible assets with indefinite useful lives are tested for impairment annually either individually or at the cash generating unit level. Such intangibles are not amortised. The useful life of an intangible asset with an indefinite life is reviewed annually to determine whether indefinite life assessment continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is made on a prospective basis.

4.10 INVENTORIES

Inventories are stated at the lower of cost and net realisable value. Cost is determined on the weighted average cost method, and comprises the purchase price, production or conversion costs incidentals incurred in bringing the inventories to their present location and condition. The cost of conversion includes cost directly related to the units of production, and a proportion of fixed production overheads based on the normal capacity of the production facilities.

Net realisable value represents the estimated selling price less the estimated costs of completion and the estimated costs necessary to make the sale.

4.11 CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash in hand, bank balances, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value with original maturity periods of three months or less. For the purpose of the statements of cash flows, cash and cash equivalents are presented net of bank overdrafts.

4.12 NON-CURRENT ASSETS HELD FOR SALE

Non-current assets (or disposal group comprising assets and liabilities) that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale. Immediately before classification as held for sale, the non-current assets (or the disposal group) are remeasured in accordance with the Group’s accounting policies. Upon classification as held for sale, the non-current assets (or the disposal group) are not depreciated and are measured at the lower of their previous carrying amount and fair value less cost to sell. Any differences are recognised in profit or loss.

Page 42 RESINTECH BERHAD 98 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.13 IMPAIRMENT

(a) Impairment of Financial Assets

The Group recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at amortised cost or at fair value through other comprehensive income, trade receivables, as well as on financial guarantee contracts.

The expected credit loss is estimated as the difference between all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original effective interest rate.

The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognises lifetime expected credit losses for trade receivables using the simplified approach. The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience and are adjusted for forward-looking information (including time value of money where appropriate).

For all other financial instruments, the Group recognises lifetime expected credit losses when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12 month expected credit losses. Ǧ The Group recognises an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at fair value through other comprehensive income, for which the loss allowance is recognised in other comprehensive income and accumulated in the fair value reserve, and does not reduce the carrying amount of the financial asset in the statement of financial position.

Page 43 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 99 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.13 IMPAIRMENT (CONT’D)

(b) Impairment of Non-financial Assets

The carrying values of assets, other than those to which MFRS 136 does not apply, are reviewed at the end of each reporting period for impairment when an annual impairment assessment is compulsory or there is an indication that the assets might be impaired. Impairment is measured by comparing the carrying values of the assets with their recoverable amounts. When the carrying amount of an asset exceeds its recoverable amount, the asset is written down to its recoverable amount and an impairment loss shall be recognised. The recoverable amount of an asset is the higher of the assets' fair value less costs to sell and its value-in-use, which is measured by reference to discounted future cash flows using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where it is not possible to estimate the recoverable amount of an individual asset, the Group determines the recoverable amount of the cash-generating unit to which the asset belongs.

An impairment loss is recognised in profit or loss immediately unless the asset is carried at its revalued amount. Any impairment loss of a revalued asset is treated as a revaluation decrease to the extent of a previously recognised revaluation surplus for the same asset. Any impairment loss recognised in respect of a cash- generating unit is allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating units and then to reduce the carrying amounts of the other assets in the cash-generating unit on a pro rata basis.

In respect of assets other than goodwill, and when there is a change in the estimates used to determine the recoverable amount, a subsequent increase in the recoverable amount of an asset is treated as a reversal of the previous impairment loss and is recognised to the extent of the carrying amount of the asset that would have been determined (net of amortisation and depreciation) had no impairment loss been recognised. The reversal is recognised in profit or loss immediately, unless the asset is carried at its revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Page 44 RESINTECH BERHAD 100 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.14 PROVISIONS

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of past events, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and when a reliable estimate of the amount can be made. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, the provision is the present value of the estimated expenditure required to settle the obligation. The discount rate shall be a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as interest expense in profit or loss.

4.15 EMPLOYEE BENEFITS

(a) Short-term Benefits

Wages, salaries, paid annual leave and bonuses are measured on an undiscounted basis and are recognised in profit or loss in the period in which the associated services are rendered by employees of the Group.

(b) Defined Contribution Plans

The Group’s contributions to defined contribution plans are recognised in profit or loss in the period to which they relate. Once the contributions have been paid, the Group has no further liability in respect of the defined contribution plans.

4.16 BORROWING COSTS

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of those assets, until such time as the assets are ready for their intended use or sale. The capitalisation of borrowing costs is suspended during extended periods in which active development is interrupted.

All other borrowing costs are recognised in profit or loss as expenses in the period in which they are incurred.

Page 45 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 101 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.17 INCOME TAXES

(a) Current Tax

Current tax assets and liabilities are expected amount of income tax recoverable or payable to the taxation authorities.

Current taxes are measured using tax rates and tax laws that have been enacted or substantively enacted at the end of the reporting period and are recognised in profit or loss except to the extent that the tax relates to items recognised outside profit or loss (either in other comprehensive income or directly in equity).

(b) Deferred Tax

Deferred tax are recognised using the liability method for all temporary differences other than those that arise from goodwill or from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on the tax rates that have been enacted or substantively enacted at the end of the reporting period.

Deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. The carrying amounts of deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that the related tax benefits will be realised.

Where investment properties are carried at their fair value, the amount of deferred tax recognised is measured using the tax rates that would apply on sale of those assets at their carrying value at the reporting date unless the property is depreciable and is held with the objective to consume substantially all of the economic benefits embodies in the property over time, rather than through sale.

Current and deferred tax items are recognised in correlation to the underlying transactions either in profit or loss, other comprehensive income or directly in equity. Deferred tax arising from a business combination is adjusted against goodwill or negative goodwill.

Current tax assets and liabilities or deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred taxes relate to the same taxable entity (or on different tax entities but they intend to settle current tax assets and liabilities on a net basis) and the same taxation authority.

Page 46 RESINTECH BERHAD 102 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.18 CONTINGENT LIABILITIES

A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Group. It can also be a present obligation arising from past events that is not recognised because it is not probable that an outflow of economic resources will be required or the amount of obligation cannot be measured reliably.

A contingent liability is not recognised but is disclosed in the notes to the financial statements, unless the probability of outflow of economic benefits is remote. When a change in the probability of an outflow occurs so that the outflow is probable, it will then be recognised as a provision.

4.19 EARNINGS PER ORDINARY SHARE

Basic earnings per ordinary share is calculated by dividing the consolidated profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the reporting period, adjusted for own shares held.

Diluted earnings per ordinary share is determined by adjusting the consolidated profit or loss attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.

4.20 OPERATING SEGMENTS

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. An operating segment’s operating results are reviewed regularly by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

Page 47 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 103 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.21 FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using a valuation technique. The measurement assumes that the transaction takes place either in the principal market or in the absence of a principal market, in the most advantageous market. For non-financial asset, the fair value measurement takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

For financial reporting purposes, the fair value measurements are analysed into level 1 to level 3 as follows:-

Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liability that the entity can access at the measurement date;

Level 2: Inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3: Inputs are unobservable inputs for the asset or liability.

The transfer of fair value between levels is determined as of the date of the event or change in circumstances that caused the transfer.

Page 48 RESINTECH BERHAD 104 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the FinancialBERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.22 REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue is recognised by reference to each distinct performance obligation in the contract with customer and is measured at the consideration specified in the contract of which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, net of sales and service tax, returns, rebates and discounts.

The Group recognises revenue when (or as) it transfers control over a product or service to customer. An asset is transferred when (or as) the customer obtains control of that asset.

The Group transfers control of a good or service at a point in time unless one of the following overtime criteria is met:-

 The customer simultaneously receives and consumes the benefits provided as the Group performs.

 The Group’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced.

 The Group’s performance does not create an asset with an alternative use and the Group has an enforceable right to payment for performance completed to date.

(a) Sale of Goods

Revenue from sale of goods is recognised when the Group has transferred control of the goods to the customer, being when the goods have been delivered to the customer and upon its acceptance. Following delivery, the customer has full discretion over the manner of distribution and price to sell the goods, and bears the risks of obsolescence and loss in relation to the goods.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

(b) Services

Revenue from providing services is recognised over time in the period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously. As a practical expedient, the Group recognises revenue on a straight-line method over the period of service.

Page 49 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 105 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

4.23 REVENUE FROM OTHER SOURCES AND OTHER OPERATING INCOME

(a) Dividend Income

Dividend income from investment is recognised when the right to receive dividend payment is established.

(b) Interest Income

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

(c) Rental Income

Rental income from investment properties is accounted for on a straight-line method over the lease term.

5. INVESTMENTS IN SUBSIDIARIES

The Company 2021 2020 RM’000 RM’000

Unquoted shares, at cost 46,928 44,918 Accumulated impairment losses (1,358) (1,358)

45,570 43,560

The details of the subsidiaries are as follows:-

Principal Place of Percentage of Issued Business/Country Share Capital Held Name of Subsidiary of Incorporation by Parent Principal Activities 2021 2020 % %

Direct subsidiaries:-

Resintech Plastics Malaysia 100 100 Designing, manufacturing, (M) Sdn. Bhd. trading and marketing of a diversified range of plastic pipes, water tanks and fittings.

Page 50 RESINTECH BERHAD 106 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

5. INVESTMENTS IN SUBSIDIARIES (CONT’D)

The details of the subsidiaries are as follows (Cont’d):-

Principal Place of Percentage of Issued Business/Country Share Capital Held Name of Subsidiary of Incorporation by Parent Principal Activities 2021 2020 % %

Direct subsidiaries (Cont’d):-

Resintech-Kapar Malaysia 100 100 Designing, manufacturing, Sdn. Bhd. trading and marketing of a diversified range of Polyethylene, Polypropylene and Acrylonitrile Butadiene Styrene pipes, tanks and fittings.

Resintech Plastics Malaysia 100 100 Designing, manufacturing, (Sarawak) Sdn. Bhd. trading and marketing of a diversified range of plastic pipes, water tanks and fittings.

Johan Panglima (M) Malaysia 100 100 Dormant. Sdn. Bhd.

Sarpino’s Pizzeria Cambodia 100 100 Property holding. (Cambodia) Co., Ltd.

TCT Metal Sdn. Bhd.√ Malaysia 100 - Property holding.

Indirect subsidiaries:-

Resintech Engineering Malaysia - 100 Dormant. Sdn. Bhd.^

Resintech (Sabah) Malaysia 100 100 Trading and marketing of a Sdn. Bhd.^ diversified range of plastic pipes, water tanks and fittings.

Resintech Products Malaysia 100 100 Trading and marketing of a Marketing Sdn. Bhd.^ diversified range of plastic pipes, water tanks, fittings and children’s playground equipment.

Exact Link Sdn. Bhd.^ Malaysia 100 100 Property holding.

Page 51 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 107 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

5. INVESTMENTS IN SUBSIDIARIES (CONT’D)

The details of the subsidiaries are as follows (Cont’d):-

Principal Place of Percentage of Issued Business/Country Share Capital Held Name of Subsidiary of Incorporation by Parent Principal Activities 2021 2020 % % Indirect subsidiaries (Cont’d):-

PT Resintech Indonesia 100 100 Designing and manufacturing Indomas*√ of a diversified range of plastic pipes, water tanks and fittings.

Notes:-

^ Interest held by Resintech Plastics (M) Sdn. Bhd. * Interest held by Resintech Plastics (M) Sdn. Bhd. and Resintech-Kapar Sdn. Bhd. √ These subsidiaries were audited by other firms of chartered accountants.

(a) During the current financial year, the Company has acquired 100% equity interests in TCT Metal Sdn. Bhd. (“TCT”) for a cash consideration of RM210,000. The acquisition has no significant effect on the financial results of the Group for the current financial year and the financial position of the Group as at the end of the current reporting period. The details of the acquisition are disclosed in Note 37 to the financial statements.

On 31 March 2021, the Company subscribed for an additional 1,800,000 ordinary shares at an issue price of RM1 each in the share capital of TCT for a total cash consideration of RM1,800,000.

(b) During the current financial year, a wholly-owned subsidiary of the Company, Resintech Plastics (M) Sdn. Bhd., has disposed of its entire equity interest in Resintech Engineering Sdn. Bhd. for a cash consideration of RM100,000. The details of the disposal are disclosed in Note 38 to the financial statements.

Page 52 RESINTECH BERHAD 108 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 53 162 358 922 756 At 6,127 38,908 47,233 Page RM’000 31.3.2021 - - 7 1 4 94 106 Foreign Foreign RM’000 Exchange Exchange Differences ) use ------of - ssets (114) (114) A RM’000 (Note 8 (Note Transfer to Right - - - - - 930 (930) RM’000 classification Re ) - (39) eciation eciation (158) (215) r (1,253) (2,811) (4,476 RM’000 Charges Dep - - - - (1) (1) (2) Off Written RM’000 - - - - - (2) (2) RM’000 Disposal ) ) 48 33 110 756 1,717 1,794 4,458 te 40(a te RM’000 Additions (No 2021 155 155 406 At 7,138 1,100 1,044 37,420 47,263 RM’000 1.4.2020 MARCH X) 31 ENDED STATEMENTS YEAR progress - in - FINANCIAL BERHAD BERHAD THE FINANCIAL TO and moulds and equipment The Group The 2021 Carrying Amount Land and buildings equipment tools, machinery, Plant, Furniture, fittings and office forklifts and vehicles Motor Electrical installation and renovation work Capital THE EQUIPMENT AND PLANT PROPERTY, RESINTECH (Incorporated Malaysia) in Registration No: 199501012460 (341662 - NOTES 6. FOR RESINTECH BERHAD Registration No. 199501012460 (341662-X) 109 ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 54 155 155 406 At 7,138 1,100 1,044 37,420 47,263 Page Page RM’000 31.3.2020 - - (4) (30) (10) (277) (321) Foreign Foreign RM’000 Exchange Exchange Differences - - - - - (4,680) (4,680) Note 7) Note RM’000 ( Properties Transfer to Investment - - - - - 7,892 7,892 Surplus RM’000 Revaluation Revaluation - (45) (141) (202) (904) eciation eciation (1,345) (2,637) RM’000 Charges Depr - - - (27) (15) (534) (576) Off Written RM’000 - - - - - (304) (304) RM’000 Disposal ) ) - 33 180 180 196 1,044 3,826 2,373 2,373 RM’000 Additions (Note 40(a (Note - 192 901 At 6,471 1,110 35,389 44,063 RM’000 1.4.2019 2021 MARCH X) 31 ENDED STATEMENTS equipment office forklifts YEAR progress - in - FINANCIAL BERHAD BERHAD THE nt, machinery, tools, machinery, nt, FINANCIAL TO and moulds and equipment The Group The 2020 Carrying Amount Land and buildings Pla Furniture, fittings and and vehicles Motor Electrical installation and renovation work Capital PROPERTY, PLANT AND EQUIPMENT (CONT’D) EQUIPMENT AND PLANT PROPERTY, THE RESINTECH (Incorporated Malaysia) in Registration No: 199501012460 (341662 - NOTES FOR 6. RESINTECH BERHAD 110 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

6. PROPERTY, PLANT AND EQUIPMENT (CONT’D)

At At Accumulated Carrying Cost Valuation Depreciation Amount The Group RM'000 RM'000 RM'000 RM'000

2021

Land and buildings 2,647 37,581 (1,320) 38,908 Plant, machinery, tools, equipment and moulds 45,261 - (39,134) 6,127 Furniture, fittings and office equipment 585 - (423) 162 Motor vehicles and forklifts 3,706 - (3,348) 358 Electrical installation and renovation 4,459 - (3,537) 922 Store 99 - (99) - Capital work-in-progress 756 - - 756

57,513 37,581 (47,861) 47,233

2020

Land and buildings - 37,420 - 37,420 Plant, machinery, tools, equipment and moulds 43,875 - (36,737) 7,138 Furniture, fittings and office equipment 540 - (385) 155 Motor vehicles and forklifts 3,772 - (3,366) 406 Electrical installation and renovation 4,410 - (3,310) 1,100 Store 99 - (99) - Capital work-in-progress 1,044 - - 1,044

53,740 37,420 (43,897) 47,263

Page 55 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 111 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

6. PROPERTY, PLANT AND EQUIPMENT (CONT’D)

(a) The carrying amount of the land and buildings at the end of the reporting period were as follows:-

The Group 2021 2020 RM’000 RM’000

Freehold land 1,730 1,730 Buildings 37,178 35,690

38,908 37,420

(b) The carrying amount of the property, plant and equipment at the end of the reporting period that have been pledged as security with the banks for credit facilities granted to the Group were as follows:-

The Group 2021 2020 RM'000 RM'000

Buildings 24,985 22,950 Plant and machinery 3,876 4,442

28,861 27,392

Page 56 RESINTECH BERHAD 112 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

6. PROPERTY, PLANT AND EQUIPMENT (CONT’D)

(c) Certain land and buildings have been revalued at the end of the financial year ended 31 March 2020 by independent professional valuers. The surpluses arising from the revaluation, net of deferred taxation, have been credited to other comprehensive income and accumulated in equity under the revaluation reserve.

The details of the Group’s land and buildings carried at fair value are analysed as follows:-

Level 1 Level 2 Level 3 Total The Group RM’000 RM’000 RM’000 RM’000

2021

Freehold land - 1,730 - 1,730 Buildings - 34,575 - 34,575

- 36,305 - 36,305

2020

Freehold land - 1,730 - 1,730 Buildings - 35,690 - 35,690

- 37,420 - 37,420

The level 2 fair values have been determined based on the market comparison approach that reflects recent transaction prices for similar properties. The most significant input into this valuation approach is price per square foot of comparable properties. There has been no change to the valuation technique during the financial year.

There were no transfers between level 1 and level 2 during the financial year.

The fair value measurements of the land and buildings are based on the highest and best use which does not differ from their actual use.

(d) The carrying amount, had the land and buildings of the Group been carried at cost less accumulated depreciation, would have been RM20,063,000 (2020 - RM17,679,000).

Page 57

RESINTECH BERHAD Registration No. 199501012460 (341662-X) 113 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

7. INVESTMENT PROPERTIES

Gain/(Loss) on Foreign At Changes in Exchange At 1.4.2020 Fair Value Disposals Differences 31.3.2021 The Group RM’000 RM’000 RM’000 RM’000 RM’000

Carrying Amount

At fair value:-

Freehold land 33,922 496 (5,037) (197) 29,184 Leasehold land 55 - - - 55 Buildings 4,242 (110) (623) 31 3,540

38,219 386 (5,660) (166) 32,779

Transfer from Gain/(Loss) on Property, Plant Foreign At Changes in and Equipment Exchange At 1.4.2019 Fair Value (Note 6) Disposals Differences 31.3.2020 The Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Carrying Amount

At fair value:-

Freehold land 30,545 1,453 4,300 (2,707) 331 33,922 Leasehold land 55 - - - - 55 Buildings 4,781 (57) 380 (891) 29 4,242

35,381 1,396 4,680 (3,598) 360 38,219

(a) The investment properties of the Group are leased to customers under operating leases with rentals payable monthly. The leases contain initial non-cancellable periods ranging from 1 to 2 (2020 - 1 to 2) years.

As at the reporting date, the future minimum rentals receivable under the non-cancellable operating leases are as follows:-

The Group 2021 2020 RM'000 RM'000

Within 1 year 604 941 Between 1 and 2 years - 604

604 1,545

Page 58 RESINTECH BERHAD 114 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

7. INVESTMENT PROPERTIES (CONT’D)

(b) The freehold land and building with a total carrying value of approximately RM21,058,000 (2020 - RM21,058,000) have been pledged as security with a bank for credit facilities granted to the Group.

(c) The fair value of the investment properties have been determined based on valuations performed by independent professional valuers at the end of the reporting date using the sales comparison. Sales price of comparable properties in close proximity are adjusted for differences in key attributes such as property size, location and market trends. The most significant input into this valuation approach is the price per square foot of comparable properties. There has been no change to the valuation technique during the financial year.

The fair values of the investment properties are within level 2 of the fair value hierarchy. There were no transfers between level 1 and level 2 during the financial year.

The fair value measurements of the investment properties are based on the highest and best use which does not differ from their actual use.

(d) Direct operating expenses arising from the investment properties are as follows:-

The Group 2021 2020 RM'000 RM'000

Assessment 24 25 Quit rent 22 22

Page 59 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 115 ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 60 385 884 2021 At 1,058 Page Page 52,328 54,655 RM’000 31.3. - - - 103 103 RM’000 Foreign Exchange Differences ) - - - 226 226 of A RM’000 (Note 37 Subsidiary Acquisition - - - 114 114 RM’000 (Note 6) Transfer from from Transfer property, plant plant property, and equipment 1) (80) (260) (517) (1,054) (1,91 RM’000 Charges Depreciation ) - - 383 4,614 4,997 RM’000 Additions Note 40(a) ( 82 t A 1,318 1,401 48,325 51,126 RM’000 1.4.2020 2021 MARCH X) 31 ENDED STATEMENTS YEAR -USE -USE ASSETS FINANCIAL OF THE FINANCIAL TO The Group The 2021 Carrying Amount Leasehold land Leased land and machineryPlant Motor vehicles THE RIGHT- RESINTECH BERHAD RESINTECH BERHAD (Incorporated Malaysia) in Registration No: 199501012460 (341662 - 8. NOTES FOR RESINTECH BERHAD 116 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 61 0 82 202 Page Page At 1,318 1,401 48,325 51,126 RM’000 31.3. ) - - - 102 ( (102) RM’000 Foreign Exchange Differences - - - valuation valuation 16,773 16,773 Surplus RM’000 Re (42) (657) (260) (563) (1,522) RM’000 Charges Depreciation ) - - - 822 822 RM’000 Addition (Note 40(a) 124 t 1,578 1,142 A 32,311 35,155 4.2019 RM’000 1. 2021 MARCH X) 31 (CONT’D) ENDED STATEMENTS YEAR USE ASSETS ASSETS USE - FINANCIAL OF - THE 0 FINANCIAL IGHT 02 TO The Group The 2 Carrying Amount Leasehold land Leased land and machineryPlant Motor vehicles R THE RESINTECH BERHAD RESINTECH BERHAD (Incorporated Malaysia) in Registration No: 199501012460 (341662 - NOTES 8. FOR RESINTECH BERHAD Registration No. 199501012460 (341662-X) 117 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

8. RIGHT-OF-USE ASSETS (CONT’D)

At At Accumulated Carrying Cost Valuation Depreciation Amount The Group RM'000 RM'000 RM'000 RM'000

2021

Leasehold land 4,954 48,487 (1,113) 52,328 Leased land 507 - (122) 385 Plant and machinery 2,597 - (1,539) 1,058 Motor vehicles 2,799 - (1,915) 884

10,857 48,487 (4,689) 54,655

2020

Leasehold land - 48,325 - 48,325 Leased land 124 - (42) 82 Plant and machinery 2,597 - (1,279) 1,318 Motor vehicles 2,799 - (1,398) 1,401

5,520 48,325 (2,719) 51,126

(a) The Group leases certain pieces of leasehold land and motor vehicles of which the leasing activities are summarised below:-

(i) Leasehold land

The Group has entered into various agreements for the use of the leasehold land. The leasehold period ranging from 20 to 99 (2020 - 20 to 99) years.

(ii) Leased land

The Group has leased a land that runs 8 (2020 - 8) years, with no option to renew the lease after that date.

(iii) Motor vehicles

The Group has leased its motor vehicles under hire purchase arrangements. The Group has an option to purchase the asset at the expiry of the lease period at an insignificant amount.

(b) Included in the right-of-use assets of the Group are leasehold land with total carrying amount of RM29,757,000 (2020 - RM28,655,000) that have been pledged to licensed banks as security for banking facilities granted to the Group as disclosed in Note 28 to the financial statements.

Page 62 RESINTECH BERHAD 118 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

8. RIGHT-OF-USE ASSETS (CONT’D)

(c) In the previous financial year, the Group’s leasehold land were revalued by independent professional valuers. The surpluses arising from the revaluation, net of deferred taxation, have been credited to other comprehensive income and accumulated in equity under the revaluation reserve.

The details of the Group’s leasehold land carried at fair value are analysed as follows:-

Level 1 Level 2 Level 3 Total The Group RM'000 RM'000 RM'000 RM'000

2021

Leasehold land - 47,396 - 47,396

2020

Leasehold land - 48,325 - 48,325

The level 2 fair values have been determined based on the market comparison approach that reflects recent transaction prices for similar properties. The most significant input into this valuation approach is price per square foot of comparable properties. There has been no change to the valuation technique during the financial year.

There were no transfers between level 1 and level 2 during the financial year.

The fair value measurements of the leasehold land is based on the highest and best use which does not differ from their actual use.

9. INTANGIBLE ASSETS

The Group 2021 2020 RM'000 RM'000

Licence fees:- At cost - 460 Accumulated amortisation - (460)

- -

The intangible assets have been written off during the financial year. In the previous financial year, the intangible assets were in respect of patents for manufacturing of specific range of plastic pipes and belong to the Group’s “Manufacturing and Trading” reportable segment.

The intangible assets were in respect of licensing rights to use a design patent acquired from KWH Pipe Ltd..

Page 63

RESINTECH BERHAD Registration No. 199501012460 (341662-X) 119 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

10. OTHER INVESTMENTS

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

Unquoted shares, at fair value 6,676 7,924 492 492 Accumulated impairment losses (420) (420) (420) (420)

6,256 7,504 72 72

(a) The Group has designated the below equity investments at fair value through other comprehensive income because the Group intends to hold for long-term strategic purposes.

The fair value of each investment is summarised below:-

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

Unquoted shares of:- Entity A 3,114 4,425 - - Entity B 3,070 3,007 - - Entity C 72 72 72 72

6,256 7,504 72 72

(b) During the financial year, the Group has partially disposed of its investments in Entity A to partially realised its gain on this investments. The shares sold had a fair value of RM1,106,000 (2020 - Nil) at the time of sale and the Group realised a net gain of RM560,000 (2020 - Nil) whereby RM628,000 (2020 - Nil) were transferred from the associated fair value reserve to retained profits.

Page 64

RESINTECH BERHAD 120 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration(cont’d) No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

11. INVENTORIES

The Group 2021 2020 RM'000 RM'000

Raw materials 9,320 6,996 Raw materials in transit 2,271 - Finished goods 13,479 14,229

25,070 21,225 Recognised in profit or loss:- Inventories recognised as cost of sales 47,297 60,433

12. TRADE RECEIVABLES

The Group 2021 2020 RM'000 RM'000

Trade receivables 24,482 19,454 Allowance for impairment losses (2,140) (2,416)

22,342 17,038

Allowance for impairment losses:- At 1 April (2,416) (1,699) Addition during the financial year (Note 32) (433) (908) Reversal during the financial year (Note 32) 606 174 Written off during the financial year 97 - Translation differences 6 17

At 31 March (2,140) (2,416)

The Group’s normal trade credit terms range from 30 to 120 (2020 - 30 to 120) days.

Page 65 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 121 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

13. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

Other receivables 7,199 10,891 1 1 Deposits 4,059 2,853 5 66 Prepayments 202 538 - -

11,460 14,282 6 67

Included in other receivables are advances of RM4,428,000 and RM1,947,000 (2020 - RM6,142,000 and RM2,045,000) for its two other investments in which the Group has the option to convert the advances made into additional equity interests subsequently. The amounts are unsecured, interest- free and are likely to be converted into equity interest and classified as other investments.

14. AMOUNT OWING BY SUBSIDIARIES

The Company 2021 2020 RM'000 RM'000

Non-trade balances 24,226 26,133 Allowance for impairment losses (2,328) (2,328)

21,898 23,805

The amount owing is non-trade in nature, unsecured, interest-free and repayable on demand. The amount owing is to be settled in cash.

15. SHORT-TERM INVESTMENTS

The Group 2021 2020 RM’000 RM'000

At fair value:- Quoted shares 101 101 Money market fund 3,362 381

3,463 482

Market value of:- Quoted shares 101 101 Money market fund 3,362 381

Page 66 RESINTECH BERHAD 122 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

15. SHORT-TERM INVESTMENTS (CONT’D)

The short-term money market fund represents the Group’s investments in highly liquid money market instruments which are readily convertible to known amounts of cash, and are subject to an insignificant risk of changes in value.

16. FIXED DEPOSITS WITH LICENSED BANKS

Included in the fixed deposits with licensed banks of the Group at the end of the reporting period was an amount of RM452,000 (2020 - RM322,000) which has been pledged to licensed banks as security for banking facilities granted to the Group out of which RM100,000 (2020 - RM100,000) is held in trust by a director of the Group.

The effective interest rates of the fixed deposits with licensed banks at the end of the reporting period ranged from 1.30% to 2.05% (2020 - 2.05% to 3.15%) per annum. The fixed deposits have maturity periods ranging from 1 to 12 (2020 - 1 to 12) months.

17. ASSET/(LIABILITIES) CLASSIFIED AS HELD FOR SALE

The Group 2021 2020 RM'000 RM'000

Asset classified as held for sale:- Property, plant and equipment, at valuation 5,600 5,600

Reserve relating to asset held for sale:- Revaluation reserve 3,857 3,857

Liabilities classified as held for sale:- Deferred tax liabilities (834) (834) Other liabilities (207) (207)

(1,041) (1,041)

Included in other liabilities are deposit received from the purchaser and tax expenses.

The above relates to a property which had been contracted for sale in prior years. The transaction has not been completed as the agreement is still conditional upon the Approved Development Order, which shall be obtained from relevant authorities within 36 months from the date of the Joint Venture Agreement.

Page 67

RESINTECH BERHAD Registration No. 199501012460 (341662-X) 123 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

18. SHARE CAPITAL

The Group/The Company 2021 2020 2021 2020 Number of Shares (’000) RM’000 RM’000

Issued and Fully Paid-Up

Ordinary Shares 137,205 137,205 68,602 68,602

The holders of ordinary shares are entitled to receive dividends as and when declared by the Company and are entitled to one vote per ordinary share at meetings of the Company. The ordinary shares have no par value.

19. FAIR VALUE RESERVE

The fair value reserve represents the cumulative fair value changes (net of tax, where applicable) of investments designated at fair value through other comprehensive income.

20. REVALUATION RESERVE

The revaluation reserve represents the increase in the fair value of land and buildings of the Group (net of deferred tax, where applicable) presented under property, plant and equipment. This included revaluation surplus (net of deferred taxation, where applicable) for land and buildings immediately prior to its reclassification as investment property as a result of change in use or right- of-use asset. Upon retirement or disposal of these land and buildings, the revaluation reserve will be transferred directly to retained profits.

21. FOREIGN EXCHANGE TRANSLATION RESERVE

The foreign exchange translation reserve arose from the translation of the financial statements of foreign subsidiaries whose functional currencies are different from the Group’s presentation currency.



Page 68 RESINTECH BERHAD 124 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration(cont’d) No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

22. LONG-TERM BORROWINGS

The Group 2021 2020 RM'000 RM'000

Lease liabilities (Note 23) 441 396 Term loans (Note 24) 4,678 3,959

5,119 4,355

23. LEASE LIABILITIES

The Group 2021 2020 RM’000 RM’000

At 1 April 915 1,594 Additions (Note 40(a)) 383 250 Interest expense recognised in profit or loss (Note 33) 67 124 Repayment of principal (628) (929) Repayment of interest expense (67) (124)

At 31 March 670 915

Analysed by:- Current liabilities (Note 28) 229 519 Non-current liabilities (Note 22) 441 396

670 915

24. TERM LOANS

The Group 2021 2020 RM’000 RM’000

Current liabilities (Note 28) 2,327 810 Non-current liabilities (Note 22) 4,678 3,959

7,005 4,769

The term loans of the Group at the end of the reporting period bore effective interest rates ranging from 4.25% to 4.97% (2020 - 4.50% to 6.08%) per annum and are secured in the same manner as the bills payable disclosed in Note 28 to the financial statements.

Page 69 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 125 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X) (cont’d)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

25. DEFERRED TAX LIABILITIES

The Group 2021 2020 RM’000 RM’000

At 1 April 19,227 13,813 Recognised in profit or loss (Note 34(a)) (666) 564 Arising from revaluation of properties - 5,070 Translation differences (28) (220)

At 31 March 18,533 19,227

The deferred tax consists of the tax effects of the following items:-

The Group 2021 2020 RM’000 RM’000

Deferred tax liabilities:- Accelerated capital allowances 1,504 1,808 Revaluation of properties 17,163 17,739 Others (134) (320)

18,533 19,227

No deferred tax assets/(liabilities) are recognised on the following items:-

The Group 2021 2020 RM'000 RM'000

Unabsorbed capital allowances 20 - Unutilised tax losses 2,470 1,966 Allowance for impairment losses 530 1,156 Accelerated capital allowances (3,018) (3,603)

2 (481)

26. TRADE PAYABLES

The normal trade credit terms granted to the Group range from 30 to 90 (2020 - 30 to 90) days.

Page 70 RESINTECH BERHAD 126 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

NotesRESINTECH to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (cont’d)(Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

27. OTHER PAYABLES AND ACCRUALS

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

Other payables 4,275 2,440 32 1 Accruals 447 305 73 74 Deposits received 2,095 912 - -

6,817 3,657 105 75

28. SHORT-TERM BORROWINGS

The Group 2021 2020 RM'000 RM'000

Bills payable 15,581 10,990 Lease liabilities (Note 23) 229 519 Term loans (Note 24) 2,327 810

18,137 12,319

The bills payable of the Group at the end of the reporting period bore effective interest rates ranging from 2.91% to 4.21% (2020 - 3.87% to 5.14%) per annum and are secured by:-

(a) legal charges over certain right-of-use assets of certain subsidiaries and of a related party;

(b) legal charges over certain freehold land and buildings of certain subsidiaries, as disclosed in Notes 6 and 7 to the financial statements;

(c) a debenture over certain plant and machinery of a subsidiary;

(d) a joint and several guarantee of certain directors; and

(e) a corporate guarantee of the Company.

Certain short-term borrowings totalling RM2,355,000 (2020 - RM5,676,000) imposed covenants on a subsidiary that has received the loans. The significant covenants of the short-term loans are as follows:-

(a) the subsidiary’s tangible net worth must not be less than RM72,000,000 at all times; and

(b) the subsidiary’s debt servicing ratio must not be less than 1.0 times.

Page 71

RESINTECH BERHAD Registration No. 199501012460 (341662-X) 127 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

29. BANK OVERDRAFTS

In the previous financial year, the bank overdrafts of the Group bore effective interest rates ranged from 7.07% to 7.14% per annum and were secured in the same manner as the bills payable disclosed in Note 28 to the financial statements.

30. REVENUE

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

Revenue from Contracts with

Customers Sale of goods 78,783 79,716 - -

Revenue from Other Source Dividend income - - 4,600 1,500

78,783 79,716 4,600 1,500

The other information on the disaggregation of revenue is disclosed in Note 43 to the financial statements.

31. OTHER INCOME

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

Dividend income from

short-term investments 40 4 - - Fair value gain on investment properties 386 1,396 - - Gain on disposal of property,

plant and equipment 22 - - - Gain on disposal of a

subsidiary (Note 38) 100 - - - Gain on foreign exchange: - realised 479 296 - - - unrealised 577 320 - - Interest income 197 139 - - Lease income from

investment properties 966 1,003 - - Others 18 129 10 68

2,785 3,287 10 68

Page 72

RESINTECH BERHAD 128 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

NotesRESINTECH to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (cont’d)(Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

32. NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS

The Group 2021 2020 RM'000 RM'000

Bad debts recovered - (184) Bad debts written off 273 - Impairment losses: - trade receivables (Note 12) 433 908 Reversal of impairment losses: - trade receivables (Note 12) (606) (174)

100 550

33. PROFIT BEFORE TAXATION

In addition to those disclosed in Notes 31 and 32 to the financial statements, profit before taxation is arrived at after charging:-

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

Auditor’s remuneration: - audit fees: - current financial year 204 194 52 52 - underprovision in the previous financial year 35 38 23 38 - non-audit fee: - auditors of the Company 5 5 5 5 - other auditors - 2 - - Depreciation of: - property, plant and equipment 4,476 2,637 - - - right-of-use assets 1,911 1,522 - - Directors’ of the Company: - fee 108 216 108 216 - salaries, bonuses and allowances 1,676 1,605 - - - defined contribution plan 160 132 - - - other benefits 16 29 13 27 Directors’ of the subsidiaries: - fee 62 48 - - - other benefits 11 5 - -

Page 73 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 129 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

33. PROFIT BEFORE TAXATION (CONT’D)

In addition to those disclosed in Notes 31 and 32 to the financial statements, profit before taxation is arrived at after charging (Cont’d):-

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

Interest expense on financial liabilities not at fair value: - bank overdrafts 311 455 - - - bills payable 412 651 - - - term loans 311 268 - - Interest expense on lease liabilities (Note 23) 67 124 - - Loss on foreign exchange: - realised 268 138 - - - unrealised 182 426 - - Loss on disposal of equity investments at fair value through other comprehensive income 68 - - - Loss on disposal of investment properties 754 1,109 - - Property, plant and equipment written off 2 576 - - Lease expenses on short- term leases 357 344 - - Staff costs: - salaries, wages, bonuses and allowances 5,150 6,327 - - - defined contribution plan 396 461 - - - other benefits 359 397 - -

Page 74 RESINTECH BERHAD 130 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

34. INCOME TAX EXPENSE

(a) Income tax expense recognised in profit or loss

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

Current tax expense 2,749 1,922 12 5 (Over)/Underprovision in the previous financial year (153) (393) 8 3

2,596 1,529 20 8 Real property gains tax 235 - - -

2,831 1,529 20 8

Deferred tax (Note 25): - origination and reversal of temporary differences (197) 21 - - - (over)/underprovision in the previous financial year (469) 543 - -

(666) 564 - -

Total income tax expense 2,165 2,093 20 8

Page 75 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 131 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

34. INCOME TAX EXPENSE (CONT’D)

(a) Income tax expense recognised in profit or loss (Cont’d)

A reconciliation of the income tax expense applicable to the profit before taxation at the statutory tax rate to the income tax expense at the effective tax rate of the Group and of the Company is as follows:-

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

Profit before taxation 8,032 6,104 4,274 1,061

Tax at the statutory tax rate of 24% 1,928 1,465 1,026 255

Tax effects of:- Effect of different tax rates in other country 98 108 - - Non-taxable gains (517) (772) (1,104) (360) Non-deductible expenses 1,015 1,082 80 118 Deferred tax assets not recognised during the financial year 293 423 - - Utilisation of reinvestment - - allowances (104) (382) - - Others (161) 19 10 (8) Real property gains tax arising from disposal of investment property 235 - - - (Over)/Underprovision in the previous financial year: - current tax (153) (393) 8 3 - deferred tax (469) 543 - -

2,165 2,093 20 8

Domestic income tax is calculated at the Malaysian statutory tax rate of 24% (2020 - 24%) of the estimated assessable profit for the financial year. The taxation of other jurisdictions is calculated at the rates prevailing in the respective jurisdiction.

Page 76 RESINTECH BERHAD 132 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

34. INCOME TAX EXPENSE (CONT’D)

(a) Income tax expense recognised in profit or loss (Cont’d)

Tax savings during the financial year arising from:-

The Group 2021 2020 RM’000 RM’000

Utilisation of capital allowances claimed during the financial year 3,517 4,693 Utilisation of tax losses previously not recognised - 113 Utilisation of reinvestment allowances 432 1,590

(b) Income tax expense recognised in other comprehensive income

The Group 2021 2020 RM’000 RM’000

Deferred tax on revaluation of property, plant, equipment - 5,070

Page 77 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 133 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

35. OTHER COMPREHENSIVE INCOME

The Group 2021 2020 RM'000 RM'000

Items that Will Not be Reclassified Subsequently to Profit or Loss

Revaluation of property, plant and equipment (Note 6) - 7,892 Revaluation of right-of-use assets (Note 8) - 16,773 Less: Deferred taxation - (5,070)

- 19,595

Fair value changes of equity investments during the financial year (142) (194)

Item that Will be Reclassified Subsequently to Profit or Loss

Foreign currency translation differences (473) 456

(615) 19,857

Page 78

RESINTECH BERHAD 134 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration(cont’d) No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

36. EARNINGS PER SHARE

The Group 2021 2020

Earnings attributable to owners of the Company (RM’000) 5,867 4,011

Number of ordinary shares in issue (’000) 137,205 137,205

Basic earnings per share (Sen) 4.28 2.92

The Company has not issued any dilutive potential ordinary shares and hence, the diluted earnings per share is equal to the basic earnings per share.

37. ACQUISITION OF A SUBSIDIARY

On 21 October 2020, the Company acquired 100% equity interests in TCT Metal Sdn. Bhd.. The following summarises the major classes of consideration transferred, and the recognised amounts of assets acquired and liabilities assumed at the date of acquisition.

The Group The Company 2021 2021 RM’000 RM’000

Right-of-use assets (Note 8) 226 226 Other receivables 790 790 Other payables (806) (806) Fair value of net identifiable assets acquired/ Total purchase consideration/ Net cash outflow from the acquisition of a subsidiary 210 210

Page 79 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 135 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

37. ACQUISITION OF A SUBSIDIARY (CONT’D)

(a) Impact of Acquisition on the Group’s Results

The acquired subsidiary has contributed the following results to the Group:-

The Group 2021 RM’000

Revenue - Loss after taxation (9)

If the acquisition had taken place at the beginning of the current financial year, the Group’s revenue and loss after taxation from continuing operations would have been nil and RM24,000 respectively.

There were no acquisitions of new subsidiaries in the previous financial year.

38. DISPOSAL OF A SUBSIDIARY

On 22 December 2020, the Company’s wholly-owned subsidiary, Resintech Plastics (M) Sdn. Bhd. disposed of its entire equity interests in a subsidiary as disclosed in Note 5 for a total consideration of RM100,000.

The financial effects of the disposal at the date of disposal are summarised below:-

The Group 2021 RM’000

Other receivables - Other payables -

Carrying amount of net assets disposed of - Disposal proceeds/Net cash inflow from the disposal of a subsidiary 100

Gain on disposal of a subsidiary (Note 31) 100

Page 80

RESINTECH BERHAD 136 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

NotesRESINTECH to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (cont’d)(Incorporated in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

39. DIVIDENDS

The Company 2021 2020 RM’000 RM’000

A first interim single-tier dividend of 1.50 sen per ordinary share in respect of the previous financial year 2,058 -

A first interim single-tier dividend of 1.25 sen per ordinary share in respect of the current financial year 1,715 -

3,773 -

40. CASH FLOW INFORMATION

(a) The cash disbursed for the purchase of property, plant and equipment and the addition of right-of-use assets are as follows:-

The Group 2021 2020 RM'000 RM'000 Property, plant and equipment

Cost of property, plant and equipment purchased (Note 6) 4,458 3,826

Right-of-use assets

Cost of right-of-use assets acquired (Note 8) 4,997 822 Less: Addition of new lease liabilities (Note 23) (383) (250)

4,614 572

Page 81 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 137 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

40. CASH FLOW INFORMATION (CONT’D)

(b) The cash and cash equivalents comprise the following:-

The Group The Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000

Fixed deposits with licensed banks 7,189 4,992 - - Cash and bank balances 6,794 4,818 1,315 839 Money market funds 3,362 381 - - Bank overdrafts - (5,570) - -

17,345 4,621 1,315 839 Less: Fixed deposits pledged with licensed banks and/or with tenure of more than 3 months (452) (322) - -

16,893 4,299 1,315 839

(c) The total cash outflows for leases as a lessee are as follows:-

The Group 2021 2020 RM'000 RM'000

Payment of short-term leases 357 344 Interest paid on lease liabilities 67 124 Payment of lease liabilities 628 929

1,052 1,397

Page 82 RESINTECH BERHAD 138 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 83 ) ) 0 3 383 79 Page Page (790 5,409 1,17 Total 16,674 38,803 23,256 (32,604 RM’000 - 311 311 (311) 4,769 3,502 1,925 7,005 (1,266) Term Loans RM’000 ) ) - 0 0 67 (67 383 45 67 915 (628 (695) bilities Lease Lease RM’000 Lia - 412 412 (412) Bills 4,179 10,990 35,301 15,581 RM’000 Payable (30,710) - ) (Note 33) 2021 MARCH X) 31 cipal recognised in profit or loss ENDED STATEMENTS prin pense YEAR cash Changes - FINANCIAL cquisition of leases new (Notes 23 and 40(a) The reconciliations ofliabilities arisingfrom financingactivities are as follows: The Group 2021 At 1 April Changes in Financing Cash Flows Proceeds from drawdown Repayment of Repayment of interests Non A Interest ex 31At March THE FINANCIAL TO CASH FLOW INFORMATION (CONT’D) INFORMATION FLOW CASH (d) (d) THE . FOR RESINTECH BERHAD RESINTECH BERHAD (Incorporated Malaysia) in Registration No: 199501012460 (341662 - NOTES 40 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 139 ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 84 250 Page Page ,463) 1,043 1,293 (1,043) (5 Total 36,562 20,844 16,674 (40,982) RM’000 - 284 268 268 (977) (268) 1,529 4,217 4,769 Term Loans RM’000 - 250 124 374 915 (929) (124) 1,594 (1,053) Lease Lease RM’000 Liabilities - 651 651 (651) Bills (4,694) 35,033 15,033 10,990 RM’000 Payable (39,076) :- (Cont’d) (Note 33) 2021 23 and 40(a)) s MARCH (Note X) 31 s cing Cash Flows recognised in profit or loss ENDED STATEMENTS YEAR cash Changes - FINANCIAL The Group 2020 At 1 April Changes in Finan Proceeds from drawdown Repayment of principal Repayment of interests Non Acquisition of lease new Interest expense 31At March THE FINANCIAL TO CASH FLOW INFORMATION (CONT’D) INFORMATION FLOW CASH (d) The reconciliations ofliabilities arisingfrom financingactivities are as follows THE . FOR RESINTECH BERHAD RESINTECH BERHAD (Incorporated Malaysia) in Registration No: 199501012460 (341662 - NOTES 40 RESINTECH BERHAD 140 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

41. KEY MANAGEMENT PERSONNEL COMPENSATION

The key management personnel of the Group and of the Company include executive directors and non-executive directors of the Company and certain members of senior management of the Group and of the Company.

The key management personnel compensation during the financial year are as follows:-

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

(a) Directors

Directors of the Company

Executive Directors

Short-term employee benefits: - salaries, bonuses and allowances 1,676 1,605 - - - defined contribution benefit 160 132 - - - other benefits 3 2 - -

1,839 1,739 - -

Non-executive Directors

Short-term employee benefits: - fees 108 216 108 216 - other benefits 13 27 13 27

121 243 121 243

1,960 1,982 121 243

Page 85 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 141 ANNUAL REPORT 2021

RESINTECH BERHAD Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

41. KEY MANAGEMENT PERSONNEL COMPENSATION (CONT’D)

The key management personnel compensation during the financial year are as follows (Cont’d):-

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

(a) Directors (Cont’d)

Directors of the Subsidiaries

Non-executive Directors

Short-term employee benefits: - salaries, bonuses and allowances - - - - - defined contribution benefits - - - - - other benefits 11 5 - - - fees 62 48 73 53 - - Total directors’ remuneration (Note 33) 2,033 2,035 121 243

(b) Other Key Management Personnel

Short-term employee benefits 1,171 1,161 - - Defined contribution benefits 109 120 - - Other benefits 13 13 - - Total compensation for other key management personnel 1,293 1,294 - -

Page 86 RESINTECH BERHAD 142 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

42. RELATED PARTY DISCLOSURES

(a) Identities of Related Parties

Parties are considered to be related to the Group if the Group or the Company has the ability, directly or indirectly, to control or jointly 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.

In addition to the information detailed elsewhere in the financial statements, the Group has related party relationships with its directors, key management personnel and entities within the same group of companies.

(b) Significant Related Party Transactions and Balances

Other than those disclosed elsewhere in the financial statements, the Group and the Company also carried out the following significant transactions with the related parties during the financial year:-

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

(i) Subsidiaries Advances to - - 860 170 Payment on behalf of - - 8 - Payment made by - - 440 100 Dividend received - - 4,600 1,500

(ii) Related party Rental paid/payable 338 338 - -

Page 87 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 143 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

43. OPERATING SEGMENTS

Operating segments are prepared in a manner consistent with the internal reporting provided to the Board of Directors 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 Group is organised into three main reportable segments as follows:-

 Manufacturing and Trading Segment - involved in manufacturing and trading of diversified range of plastics pipes, water tanks and fittings.

 Services - involved in property holding.

 Investment Holding - involved in investment holding.

 Others - dormant.

(a) The Board of Directors assesses the performance of the reportable segments based on their profit before interest expense and taxation. The accounting policies of the reporting segments are the same as the Group’s accounting policies.

Borrowings and investment-related activities are managed on a group basis and are not allocated to reportable segments.

(b) Each reportable segment assets is measured based on all assets of the segment other than investments in associates and tax-related assets.

(c) Each reportable segment liabilities is measured based on all liabilities of the segment other than borrowings and tax-related liabilities.

(d) Assets, liabilities and expenses which are common and cannot be meaningfully allocated to the reportable segments are presented under unallocated items. Unallocated items comprise mainly current tax assets, current tax liabilities and deferred tax liabilities.

Transactions between reportable segments are carried out on agreed terms between both parties. The effects of such inter-segment transactions are eliminated on consolidation.

Page 88 RESINTECH BERHAD 144 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 89 ) ) 23 23) 06 Page Page 6 517 032 The 8, (1,164 (9,321 Group 78,783 54, 78,783 18, RM'000 (54,6 133,4 - - - - - Others RM'000 - - 00 00 74

4,6 4,6 4,2 Holding RM'000 Investment - - 22) 4 480 480 ( RM'000 Services 5 66 (1,164) 49,543 14, 78,783 RM'000 128,326 and Trading Manufacturing 2021 MARCH X) 31 (CONT’D) ENDED STATEMENTS before interest and taxationbefore YEAR /(loss) FINANCIAL segment revenue THE - FINANCIAL TO 2021 Revenue External revenue Inter Consolidation adjustments Consolidated revenue Results Segment profit Finance costs Consolidation adjustments Consolidated profit before taxation THE . OPERATING SEGMENTS RESINTECH BERHAD RESINTECH BERHAD (Incorporated Malaysia) in Registration No: 199501012460 (341662 - NOTES 43 FOR RESINTECH BERHAD Registration No. 199501012460 (341662-X) 145 ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 90 ) ) ) ) 86 22 (68) Page Page 197 606 754 3 100 577 (273) ( (182) (433 The 1,034 ( (4,476 (1,911) Group RM'000 ------Others RM'000 ------

Holding RM'000 Investment ------(373) (182) RM'000 Services ) ) ) ) - 22 (68) 386 100 197 606 577 381 (273) (433 ( 1,034 (4,476 (1,911) ( RM'000 and Trading Manufacturing (Note 32) (Note (Note 31) 2021 (Note 6) - ) (Note 33) (Note (Note 31) (Note 12) MARCH (Note 8) X) (Note 31 (Note 33) 31 (Note 31) ) plant and equipmentplant ENDED STATEMENTS use assetsuse - includes includes the following: (Note 32 of xchange gain - of trade receivables of trade exchange loss of property, YEAR s (Note 31) es /(loss) impairment losses on tradeimpairment losses receivables written offwritten FINANCIAL s THE FINANCIAL TO 2021 Results (Cont’d) Segment profit on investmentFair gain value properties Gain on disposal Gain on disposal ofsubsidiarya Interest income Reversal of Unrealised foreign e debt Bad plantDepreciation of and equipmentproperty, Depreciation of right Impairment loss Interest expense Loss investments of on disposal equity (Note 33) Loss of on disposal propertiesinvestment Unrealised foreign OPERATING SEGMENTS (CONT’D) THE RESINTECH BERHAD RESINTECH BERHAD (Incorporated Malaysia) in Registration No: 199501012460 (341662 - NOTES 43. FOR RESINTECH BERHAD 146 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d)

Page 91 Page

4,458 4,458 5,223 The Group RM'000 RM'000 323,330 (100,368)

222,962

- - -

Others RM'000

-

Holding RM'000 Investment

- 3,659

756

RM'000 Services

3,702 1,564 RM'000 219,004 219,004 35,465 68,861 and Trading

Manufacturing 2021 2021

MARCH

31

ENDED STATEMENTS

YEAR

FINANCIAL

THE

FINANCIAL

TO

Segment assets assets Segment adjustments Consolidation

2021 Assets assets total Consolidated Additionsto non-currentassets other than financial financial instruments are:- Property, plant Property, and equipment Right-of-use assets THE

FOR

RESINTECH BERHAD BERHAD RESINTECH Malaysia) in (Incorporated Registration 199501012460 No: X) (341662 - NOTES 43. (CONT’D) SEGMENTS OPERATING RESINTECH BERHAD Registration No. 199501012460 (341662-X) 147 ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 92 ) 2 Page Page 670 802 7,005 1, The 71,123 18,53 15,581 58,679 Group (56,034 RM'000 - Others RM'000 105

Holding RM'000 Investment 5,631 RM'000 Services 5,387 6 RM'000 and Trading Manufacturing 2021 MARCH X) 31 ENDED STATEMENTS YEAR ilities FINANCIAL THE FINANCIAL deferred liabilities tax lease liabilities term loans bills payable current liab tax TO 2021 Liabilities Segment liabilities Unallocated liabilities: - - - - - Consolidation adjustments Consolidated liabilities total OPERATING SEGMENTS (CONT’D) THE . RESINTECH BERHAD RESINTECH BERHAD (Incorporated Malaysia) in Registration No: 199501012460 (341662 - NOTES 43 FOR RESINTECH BERHAD 148 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 93 Page Page The 6,104 (1,499) (7,931) Group 79,716 46,509 79,716 15,534 RM'000 (46,509) 126,225 - - - 52 Others RM'000 -

1,500 1,500 1,061 Holding RM'000 Investment - 480 480 (339) RM'000 Services 000 44,529 14,760 79,716 RM' 124,245 and Trading Manufacturing 2021 MARCH X) 31 ENDED STATEMENTS YEAR FINANCIAL dated profit before taxation segment revenue THE - FINANCIAL TO 2020 Revenue External revenue Inter Consolidation adjustments Consolidated revenue Results Segmentinterest profit/(loss) and taxation before Finance costs Consolidation adjustments Consoli OPERATING SEGMENTS (CONT’D) THE . RESINTECH BERHAD RESINTECH BERHAD (Incorporated Malaysia) in Registration No: 199501012460 (341662 - NOTES 43 FOR RESINTECH BERHAD Registration No. 199501012460 (341662-X) 149 ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 94 ) Page Page 139 320 (908) (426) The 1,396 1,109 (2,637) (1,522) (1,374) ( Group RM'000 ------Others RM'000 ------

Holding RM'000 Investment ------144 320 (1,109) RM'000 Services - - 139 (908) (426) 1,252 (2,637) (1,522) (1,374) RM'000 and Trading Manufacturing 2021 - MARCH X) 31 ENDED STATEMENTS use assetsuse - hange loss hange of - of trade receivables of trade YEAR es /(loss)following: the includes FINANCIAL THE FINANCIAL TO 2020 Results (Cont’d) Segment profit on investmentFair gain value properties Interest income Unrealised foreign exchange gain Loss of on disposal propertiesinvestment plantDepreciation of and equipmentproperty, Depreciation of right Impairment loss Interest expenses Unrealised foreign exc OPERATING SEGMENTS (CONT’D) THE . RESINTECH BERHAD RESINTECH BERHAD (Incorporated Malaysia) in Registration No: 199501012460 (341662 - NOTES 43 FOR RESINTECH BERHAD 150 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 95 72 Page Page 822 3,826 The Group (98,116) RM'000 310,701 212,585 - - - - Others RM'000 - - - 351

68, Holding RM'000 Investment - - - 35,017 RM'000 Services 72 822 826 3, RM'000 207,333 and Trading Manufacturing 2021 MARCH X) 31 - ENDED STATEMENTS current assets other than YEAR - FINANCIAL use assets - of - THE FINANCIAL TO financial instruments are: 2020 Assets Segment assets Consolidation adjustments Consolidated assets total Additions to non and equipment plant Property, Right Other investments OPERATING SEGMENTS (CONT’D) THE . RESINTECH BERHAD RESINTECH BERHAD (Incorporated Malaysia) in Registration No: 199501012460 (341662 - NOTES 43 FOR RESINTECH BERHAD Registration No. 199501012460 (341662-X) 151 ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d) 96 Page Page 000 915 877 4,769 5,570 The 64,037 15,026 10,990 49,783 Group (52,401) RM' - Others RM'000 75

Holding RM'000 Investment 6,010 RM'000 Services 57,952 RM'000 and Trading Manufacturing 2021 MARCH X) 31 ENDED STATEMENTS YEAR rafts FINANCIAL THE FINANCIAL deferred liabilities tax lease liabilities bills payable bank overd current tax liabilities term loans TO 2020 Liabilities Segment liabilities Unallocated liabilities: ------Consolidation adjustments Consolidated liabilities total OPERATING SEGMENTS (CONT’D) THE . RESINTECH BERHAD RESINTECH BERHAD (Incorporated Malaysia) in Registration No: 199501012460 (341662 - NOTES 43 FOR RESINTECH BERHAD 152 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

43. OPERATING SEGMENTS (CONT’D)

Geographical Information

The following is an analysis of the Group’s revenue and non-current assets by geographical markets:-

Revenue Non-Current Assets 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000

Malaysia 71,333 64,781 118,213 117,825 Indonesia 4,093 4,817 9,367 10,204 Singapore 2,504 8,558 - - Cambodia 56 543 13,343 16,083 Others 797 1,017 - -

78,783 79,716 140,923 144,112

There are no major customers with revenue equal to or more than 10% of the Group’s revenue.

44. CAPITAL COMMITMENTS

The Group The Company 2021 2020 2021 2020 RM'000 RM'000 RM'000 RM'000

Purchase of property, plant and equipment 6,236 9,006 - 2,993 Acquisition of an entity - 585 - 585

Page 97 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 153 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS

The Group’s activities are exposed to a variety of market risk (including foreign currency risk, interest rate risk and equity price risk), credit risk and liquidity risk. The Group’s overall financial risk management policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.

45.1 FINANCIAL RISK MANAGEMENT POLICIES

The Group’s policies in respect of the major areas of treasury activity are as follows:-

(a) Market Risk

(i) Foreign Currency Risk

The Group is exposed to foreign currency risk on transactions and balances that are denominated in currencies other than the respective functional currencies of entities within the Group. The currencies giving rise to this risk are primarily United States Dollar (“USD”) and Indonesian Rupiah (“IDR”). Foreign currency risk is monitored closely on an ongoing basis to ensure that the net exposure is at an acceptable level. The Group also holds cash and cash equivalents denominated in foreign currencies for working capital purposes.

The Group’s exposure to foreign currency risk (a currency which is other than the functional currency of the entities within the Group) based on the carrying amounts of the financial instruments at the end of the reporting period is summarised below:-

Foreign Currency Exposure

United Ringgit States Indonesian Malaysia Dollar Rupiah Others Total The Group RM’000 RM’000 RM’000 RM’000 RM’000

2021

Financial Assets Other investments 3,142 3,114 - - 6,256 Trade receivables 21,175 - 521 646 22,342 Other receivables 2,700 4,428 - - 7,128 Short-term investments 3,463 - - - 3,463 Fixed deposits with licensed banks 7,189 - - - 7,189 Cash and bank balances 5,243 769 62 720 6,794

42,912 8,311 583 1,366 53,172

Page 98 RESINTECH BERHAD 154 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(a) Market Risk (Cont’d)

(i) Foreign Currency Risk (Cont’d)

Foreign Currency Exposure (Cont’d)

United Ringgit States Indonesian Malaysia Dollar Rupiah Others Total The Group RM’000 RM’000 RM’000 RM’000 RM’000

2021

Financial Liabilities Trade payables (1,060) (6,158) (14) - (7,232) Other payables accruals (4,510) (151) (12) - (4,673) Bills payable (15,581) - - - (15,581) Lease liabilities (670) - - - (670) Term loans (7,005) - - - (7,005)

(28,826) (6,309) (26) - (35,161)

Net financial assets 14,086 2,002 557 1,366 18,011

Less: Net financial assets denominated in the respective entities’ functional currencies (14,086) (128) (557) - (14,771)

Currency Exposure - 1,874 - 1,366 3,240

Page 99 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 155 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X) (cont’d)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(a) Market Risk (Cont’d)

(i) Foreign Currency Risk (Cont’d)

Foreign Currency Exposure (Cont’d)

United Ringgit States Indonesian Malaysia Dollar Rupiah Others Total The Group RM’000 RM’000 RM’000 RM’000 RM’000

2020

Financial Assets Other investments 3,079 4,425 - - 7,504 Trade receivables 15,550 - 1,020 468 17,038 Other receivables 2,129 8,572 - - 10,701 Short-term investments 482 - - - 482 Fixed deposits with licensed banks 4,992 - - - 4,992 Cash and bank balances 3,599 992 190 37 4,818

29,831 13,989 1,210 505 45,535

Financial Liabilities Trade payables (366) (2,027) (21) - (2,414) Other payables accruals (2,660) (9) (44) - (2,713) Bills payable (10,990) - - - (10,990) Lease liabilities (915) - - - (915) Term loans (4,769) - - - (4,769) Bank overdrafts (5,570) - - - (5,570)

(25,270) (2,036) (65) - (27,371)

Net financial assets 4,561 11,953 1,145 505 18,164

Less: Net financial assets denominated in the respective entities’ functional currencies (4,561) (2,447) (1,145) - (8,153)

Currency Exposure - 9,506 - 505 10,011

Page 100 RESINTECH BERHAD 156 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration(cont’d) No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(a) Market Risk (Cont’d)

(i) Foreign Currency Risk (Cont’d)

Foreign Currency Risk Sensitivity Analysis

The following table details the sensitivity analysis to a reasonably possible change in the foreign currencies at the end of the reporting period, with all other variables held constant:-

The Group 2021 2020 RM’000 RM’000

Effects on Profit After Taxation

USD/RM - strengthened by 5% 71 361 - weakened by 5% (71) (361)

Others/RM: - strengthened by 5% 52 19 - weakened by 5% (52) (19)

Page 101 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 157 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) (cont’d) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(a) Market Risk (Cont’d)

(ii) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to interest rate risk arises mainly from long- term borrowings with variable rates. The Group’s policy is to obtain the most favourable interest rates available and by maintaining a balanced portfolio mix of fixed and floating rate borrowings.

Exposure to Interest Rate Risk

The Group 2021 2020 RM’000 RM’000

Fixed Rate Instruments Bills payable (Note 28) (15,581) (10,990) Lease liabilities (Note 23) (670) (915) Fixed deposits with licensed banks (Note 16) 7,189 4,992

(9,062) (6,913)

Floating Rate Instruments Term loans (Note 24) (7,005) (4,769) Bank overdrafts (Note 29) - (5,570)

(7,005) (10,339)

Interest Rate Risk Sensitivity Analysis

The Group’s fixed rate borrowings and fixed deposits with licensed banks are carried at amortised cost. Therefore, they are not subject to interest rate risk as defined in MFRS 7 since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Page 102 RESINTECH BERHAD 158 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated(cont’d) in Malaysia) Registration No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(a) Market Risk (Cont’d)

(ii) Interest Rate Risk (Cont’d)

Interest Rate Risk Sensitivity Analysis (Cont’d)

The following table details the sensitivity analysis to a reasonably possible change in the interest rates as at the end of the reporting period, with all other variables held constant:-

The Group 2021 2020 RM’000 RM’000

Effects on Profit After Taxation

Increase of 100 basis points (bp) (53) (79) Decrease of 100 bp 53 79

The Company does not have any floating rate borrowings and hence, no sensitivity analysis is presented.

(iii) Equity Price Risk

The Group’s principal exposure to equity price risk arises mainly from changes in quoted investment prices. The Group manages its exposure to equity price risk by maintaining a portfolio of equities with different risk profiles.

Any reasonably possible change in the price of quoted investment at the end of the reporting period does not have material impact on the profit after taxation of the Group. Hence, no sensitivity analysis is presented.

Page 103 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 159 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X) (cont’d)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(b) Credit Risk

The Group’s exposure to credit risk, or the risk of counterparties defaulting, arises mainly from trade and other receivables. The Group manages its exposure to credit risk by the application of credit approvals, credit limits and monitoring procedures on an ongoing basis. For other financial assets (including cash and bank balances and derivatives), the Group minimises credit risk by dealing exclusively with high credit rating counterparties.

The Company’s exposure to credit risk arises principally from loans and advances to subsidiaries, and corporate guarantee given to financial institutions for credit facilities granted to certain subsidiaries. The Company monitors the results of these subsidiaries regularly and repayments made by the subsidiaries.

(i) Credit Risk Concentration Profile

The Group does not have any major concentration of credit risk related to any individual customer or counterparty.

(ii) Exposure to Credit Risk

At the end of the reporting period, the maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position of the Group and of the Company after deducting any allowance for impairment losses (where applicable).

(iii) Assessment of Impairment Losses

At each reporting date, the Group assesses whether any of the financial assets at amortised cost is credit impaired.

The gross carrying amounts of financial assets are written off when there is no reasonable expectation of recovery (i.e. the debtor does not have assets or sources of income to generate sufficient cash flows to repay the debt) despite the fact that they are still subject to enforcement activities.

Page 104 RESINTECH BERHAD 160 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration(cont’d) No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(b) Credit Risk (Cont’d)

(iii) Assessment of Impairment Losses (Cont’d)

Trade Receivables

The Group applies the simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due.

For certain large customers or customers with a high risk of default, the Group assesses the risk of loss of each customer individually based on their financial information, past trends of payments an external credit rating, where applicable.

Also, the Group considers any receivables having financial difficulty or with significant balances outstanding for more than 120 days are deemed credit impaired and assesses for their risk of loss individually.

The expected loss rates are based on the payment profiles of sales over a period of 4 months from the measurement date and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle their debts.

Page 105 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 161 ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d)

-

Page 106 106 Page

- (9) 14,913

(758) 22,342

(1,382)

437 - (103) 334 4,971 4,971 1,732 1,382 - - (1,382) (82) (17) 4,889 1,715 1,038 1,038 - (547) 491 24,482 Gross Individual Collective Carrying RM’000 RM’000 RM’000 RM’000 14,922 14,922 - Amount Impairment Impairment Amount

2021 2021

MARCH

31

GroupThe 2021

Current (not past due) Less than 3 months past due 3 to 5 months past due due past months 5 Over due past 1 year than More Credit impaired The informationabout The the exposure to credit and the loss risk allowances calculatedunderMFRS 9 receivablesfor the trade are below:-summarised Trade ReceivablesTrade (Cont’d) ENDED STATEMENTS

YEAR

(iii) Impairment(Cont’d) of Losses Assessment

FINANCIAL

(b) (b) Credit (Cont’d)Risk THE

FINANCIAL

TO

45.1 (CONT’D) POLICIES MANAGEMENT RISK FINANCIAL THE

FOR

RESINTECH BERHAD RESINTECH Malaysia) in (Incorporated Registration 199501012460 No: X) (341662 - NOTES 45. (CONT’D) INSTRUMENTS FINANCIAL

RESINTECH BERHAD 162 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d)

- -

Page 107 107 Page

- - 14,380 - (37) 1,471 (56) 389

- - (107) 798 - - -

- 905 445

1,508 1,508 2,216 (2,216) 19,454 (2,216) (200) 17,038 14,380 Gross Individual Collective Carrying Amount Impairment Impairment RM’000 RM’000 RM’000 Amount RM’000

2021 2021

MARCH

31

GroupThe 2020 Less Less than 3 months past due 3 to 5 months past due

Current (not past due) More than 1 year past due due past 1 year than More Credit impaired Over due past months 5 The informationabout The the exposure to credit and the loss risk allowances calculatedunderMFRS 9 receivablesfor the trade are belowsummarised (Cont’d):- Trade ReceivablesTrade (Cont’d) ENDED STATEMENTS

YEAR

(iii) Assessment of Impairment Losses (Cont’d)

FINANCIAL

(b) (b) Credit (Cont’d)Risk THE

FINANCIAL

TO

45.1 (CONT’D) POLICIES MANAGEMENT RISK FINANCIAL THE

FOR RESINTECH BERHAD RESINTECH Malaysia) in (Incorporated Registration 199501012460 No: X) (341662 - NOTES 45. (CONT’D) INSTRUMENTS FINANCIAL

RESINTECH BERHAD Registration No. 199501012460 (341662-X) 163 ANNUAL REPORT 2021

RESINTECH BERHAD (Incorporated in Malaysia) Notes to the Financial Statements for the Financial Year Ended 31 March 2021 Registration No: 199501012460 (341662 - X) (cont’d)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(b) Credit Risk (Cont’d)

(iii) Assessment of Impairment Losses (Cont’d)

Trade Receivables (Cont’d)

The movements in the loss allowances in respect of trade receivables are disclosed in Note 12 to the financial statements.

Other Receivables

Other receivables are also subject to the impairment requirements of MFRS 9, the identified impairment loss was immaterial and hence, it is not provided for.

Fixed Deposits with Licensed Banks, Cash and Bank Balances

The Group considers these banks and financial institutions have low credit risks. In addition, some of the bank balances are insured by Government agencies. Therefore, the Group is of the view that the loss allowance is immaterial and hence, it is not provided for.

Amount Owing By Subsidiaries (Non-trade Balances)

The Company applies the 3-stage general approach to measuring expected credit losses for all inter-company balances. Generally, the Company considers loans and advances to subsidiaries have low credit risks. The Company assumes that there is a significant increase in credit risk when a subsidiary’s financial position deteriorates significantly. As the Company is able to determine the timing of payments of the subsidiaries’ loans and advances when they are payable, the Company considers the loans and advances to be in default when the subsidiaries are not able to pay when demanded. The Company considers a subsidiary’s loan or advance to be credit impaired when the subsidiary is unlikely to repay its loan or advance in full or the subsidiary is continuously loss making or the subsidiary is having a deficit in its total equity.

The Company determines the probability of default for these loans and advances individually using internal information available.

Page 108 RESINTECH BERHAD 164 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECH BERHAD (IncorporatedNotes to the Financialin Malaysia) Statements for the Financial Year Ended 31 March 2021 Registration(cont’d) No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(b) Credit Risk (Cont’d)

(iii) Assessment of Impairment Losses (Cont’d)

Amount owing by subsidiaries (Non-Trade Balances) (Cont’d)

The information about the exposure to credit risk and the loss allowances calculated for the amount owing by subsidiaries are summarised below:-

12-month Lifetime Gross Loss Loss Carrying Amount Allowance Allowance Amount The Company RM’000 RM’000 RM’000 RM’000

2021

Low credit risk 21,898 - - 21,898 Credit impaired 2,328 - (2,328) -

24,226 - - 21,898

2020

Low credit risk 23,805 - - 23,805 Credit impaired 2,328 - (2,328) -

26,133 - (2,328) 23,805

The movements in the loss allowances are disclosed in Note 14 to the financial statements.

Financial Guarantee Contracts

All of the financial guarantee contracts are considered to be performing, have low risks of default and historically there were no instances where these financial guarantee contracts were called upon by the parties of which the financial guarantee contracts were issued to. Accordingly, no loss allowances were identified based on 12-month expected credit losses.

Page 109 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 165 ANNUAL REPORT 2021

RESINTECH BERHAD (Incorporated in Malaysia) Notes to the Financial Statements for the Financial Year Ended 31 March 2021 Registration No: 199501012460 (341662 - X) (cont’d)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(c) Liquidity Risk

Liquidity risk arises mainly from general funding and business activities. The Group practises prudent risk management by maintaining sufficient cash balances and the availability of funding through certain committed credit facilities.

Maturity Analysis

The following table sets out the maturity profile of the financial liabilities at the end of the reporting period based on contractual undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on the rates at the end of the reporting period):-

Contractual Over Effective Carrying Undiscounted Within 1 - 5 5 Interest Rate Amount Cash Flows 1 Year Years Years The Group % RM’000 RM’000 RM’000 RM’000 RM’000

2021

Non-derivative Financial Liabilities Trade payables - 7,232 7,232 7,232 - - Other payables and accruals - 4,673 4,673 4,673 - - Bills payable 2.91 - 4.21 15,581 15,581# 15,581# - - Lease liabilities 4.48 - 5.69 670 756 262 456 38 Term loans 4.25 - 4.97 7,005 7,650 2,602 4,754 294

35,161 35,892 30,350 5,210 332

2020

Non-derivative Financial Liabilities Trade payables - 2,414 2,414 2,414 - - Other payables and accruals - 2,713 2,713 2,713 - - Bills payable 3.87 - 5.14 10,990 10,990# 10,990# - - Lease liabilities 4.48 - 6.72 915 986 566 420 - Term loans 4.50 - 6.08 4,769 5,355 1,514 3,805 36 Bank overdrafts 7.07 - 7.14 5,570 5,570 5,570 - -

27,371 28,028 23,767 4,225 36

Note:-

# - The bills payable’s contractual undiscounted cash flows represents the contractual amount after net off of its prepaid interest.

Page 110 RESINTECH BERHAD 166 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECH BERHAD (IncorporatedNotes to the Financialin Malaysia) Statements for the Financial Year Ended 31 March 2021 Registration(cont’d) No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(c) Liquidity Risk (Cont’d)

Maturity Analysis (Cont’d)

The following table sets out the maturity profile of the financial liabilities at the end of the reporting period based on contractual undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on the rates at the end of the reporting period) (Cont’d):-

Contractual Over Effective Carrying Undiscounted Within 1 - 5 5 Interest Rate Amount Cash Flows 1 Year Years Years The Company % RM’000 RM’000 RM’000 RM’000 RM’000

2021

Non-derivative Financial Liabilities Other payables and accruals - 105 105 105 - - Financial guarantee contracts in relation to corporate guarantee given to certain subsidiaries - - 22,388 22,388 - -

105 22,493 22,493 - -

2020

Non-derivative Financial Liabilities Other payables and accruals - 75 75 75 - - Financial guarantee contracts in relation to corporate guarantee given to certain subsidiaries - - 20,222 20,222 - -

75 20,297 20,297 - -

Page 111 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 167 ANNUAL REPORT 2021

RESINTECH BERHAD (Incorporated in Malaysia) Notes to the Financial Statements for the Financial Year Ended 31 March 2021 Registration No: 199501012460 (341662 - X) (cont’d)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

(c) Liquidity Risk (Cont’d)

Maturity Analysis (Cont’d)

The contractual undiscounted cash flows represent the outstanding credit facilities of the subsidiaries at the end of the reporting period. The financial guarantees have not been recognised in the financial statements since their fair value on initial recognition were not material.

45.2 CAPITAL RISK MANAGEMENT

The Group manages its capital to ensure that entities within the Group will be able to maintain an optimal capital structure so as to support its businesses and maximise shareholders value. To achieve this objective, the Group may make adjustments to the capital structure in view of changes in economic conditions, such as adjusting the amount of dividend payment, returning of capital to shareholders or issuing new shares.

The Group manages its capital based on debt-to-equity ratio that complies with debt covenants and regulatory, if any. The debt-to-equity ratio is calculated as net debt divided by total equity. The Group includes within net debt, loans and borrowings from financial institutions less cash and cash equivalents. Capital includes equity attributable to the owners of the parent and non-controlling interest. The debt-to-equity ratio of the Group at the end of the reporting period was as follows:-

The Group 2021 2020 RM’000 RM’000

Bills payable (Note 28) 15,581 10,990 Lease liabilities (Note 23) 670 915 Term loans (Note 24) 7,005 4,769 Bank overdrafts (Note 29) - 5,570

23,256 22,244 Less: Fixed deposits not pledged with licensed banks and/or with of more than 3 months (Note 40(b)) (6,737) (4,670) Less: Cash and bank balances (6,794) (4,818) Less: Money market funds (3,362) (381)

Net debt 6,363 12,375

Total equity 164,281 162,802

Debt-to-equity ratio 0.04 0.08

Page 112 RESINTECH BERHAD 168 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration(cont’d) No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.2 CAPITAL RISK MANAGEMENT (CONT’D)

There was no change in the Group’s approach to capital management during the financial year.

The Group is also required to comply with certain loan covenants as disclosed in Note 28 to the financial statements, failing which, the banks may call an event of default. The Group has complied with this requirement.

45.3 CLASSIFICATION OF FINANCIAL INSTRUMENTS

The Group The Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000

Financial Assets

Designated at Fair Value Through Other Comprehensive Income Upon Initial Recognition Other investments (Note 10) 6,256 7,504 72 72

Amortised Cost Trade receivables (Note 12) 22,342 17,038 - - Other receivables 7,128 10,701 1 1 Amount owing by subsidiaries (Note 14) - - 21,898 23,805 Fixed deposits with licensed banks (Note 16) 7,189 4,992 - - Cash and bank balances 6,794 4,818 1,315 839

43,453 37,549 23,214 24,645

Fair Value Through Profit or Loss Short-term investments (Note 15) 3,463 482 - -

Page 113 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 169 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X) (cont’d)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.3 CLASSIFICATION OF FINANCIAL INSTRUMENTS (CONT’D)

The Group The Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000

Financial Liability

Amortised Cost Trade payables (Note 26) 7,232 2,414 - - Other payables and accruals 4,673 2,713 105 75 Bills payable (Note 28) 15,581 10,990 - - Lease liabilities (Note 23) 670 915 - - Term loans (Note 24) 7,005 4,769 - - Bank overdrafts (Note 29) - 5,570 - -

35,161 27,371 105 75

45.4 GAINS OR LOSSES ARISING FROM FINANCIAL INSTRUMENTS

The Group The Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000

Financial Assets

Fair Value Through Profit or Loss Net gains recognised in profit or loss 73 20 - -

Equity Investments at Fair Value Through Other Comprehensive Income Net losses recognised in other comprehensive income (142) (194) - -

Page 114 RESINTECH BERHAD 170 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration(cont’d) No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.4 GAINS OR LOSSES ARISING FROM FINANCIAL INSTRUMENTS (CONT’D)

The Group The Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000

Financial Assets (Cont’d)

Amortised Cost Net gains recognised in profit or loss 492 534 - -

Financial Liability

Amortised Cost Net loss recognised in profit or loss 1,101 1,498 - -

Page 115 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 171 ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d)

72

Page 116 116 Page Carrying

72 101 101 6,256 6,256 6,256 7,005 7,005 3,362 3,362 Total Fair Total

- - - - -

- - - -

- - - - 7,005 - Not Carried At Fair Value Value Fair At Carried Not Fair Value of Financial Instruments

- - - -

- - - 6,256

72

Carried At Fair Value Fair At Carried - - 3,362 - - 101 2021 2021

Fair Value of Financial Instruments Financial of Instruments Value Fair Level 1 Level2 Level 3 Level 1 Level2 Level 3 Value Amount RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM’000 RM'000

MARCH

31

: ENDED STATEMENTS

YEAR

-term investments:

FINANCIAL

- money market fund- The fair values of theThe financial assets financial and liabilities the of which Group are maturing within the months 12 next approximated their carrying amounts to thedue relatively short-term maturity of the financial instruments orrepayable on demand terms. followingThe tableout sets fair the value profile financialof instruments that are atcarried fair value thoseand not carried fair valueat at the end the reportingof period:- Term loans - quoted- shares - unquoted - unquoted The Group 2021 Assets Financial Other investments Short Liability Financial The Company Other investments: THE

FINANCIAL

TO

45.5 VALUE FAIR INFORMATION THE

FOR RESINTECH BERHAD RESINTECH Malaysia) in (Incorporated Registration 199501012460 No: X) (341662 - NOTES

45. 45. (CONT’D) INSTRUMENTS FINANCIAL RESINTECH BERHAD 172 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Notes to the Financial Statements for the Financial Year Ended 31 March 2021 (cont’d)

72

Page 117 117 Page Carrying

72 381 381 381 381 101 101 7,504 7,504 7,504 4,769 4,769 Total Fair Total

- - - - -

- - - -

- - - - 4,769 - Not Carried At Fair Value Value Fair At Carried Not Fair Value of Financial Instruments

- - - -

- - - 7,504

72

Carried At Fair Value Fair At Carried - - 381 - - 101 2021 2021

Fair Value of Financial Instruments Financial of Instruments Value Fair Level 1 Level2 Level 3 Level 1 Level2 Level 3 Value Amount RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM’000 RM'000 RM'000 RM’000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

MARCH

31

ENDED STATEMENTS

YEAR

-term investments:

FINANCIAL

- money market fund- The followingThe tableout sets fair the value profile financialof instruments that are atcarried fair value thoseand not carried fair valueat at the end the reportingof period (Cont’d):- Term loans - quoted- shares - unquoted - unquoted The Group 2020 Assets Financial Other investments: Short Liability Financial The Company Other investments: THE

FINANCIAL

TO

45.5 FAIR VALUE INFORMATION (CONT’D) THE

FOR

RESINTECH BERHAD RESINTECH Malaysia) in (Incorporated Registration 199501012460 No: X) (341662 - NOTES

45. 45. (CONT’D) INSTRUMENTS FINANCIAL RESINTECH BERHAD Registration No. 199501012460 (341662-X) 173 ANNUAL REPORT 2021

RESINTECH BERHADNotes to the Financial Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration No: 199501012460 (341662 - X) (cont’d)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

45. FINANCIAL INSTRUMENTS (CONT’D)

45.5 FAIR VALUE INFORMATION (CONT’D)

(a) Fair Value of Financial Instruments Carried at Fair Value

(i) The fair values above have been determined using the following basis:-

(aa) The fair values of quoted investments is determined at their quoted closing bid prices at the end of the reporting period.

(bb) The fair value of unquoted equity investments is determined based on input and the information applicable to level 3 fair value measurement. The fair value of unquoted investments have been estimated using Discounted Cash Flows (“DCF”) techniques and/or Revalued Net Assets Value techniques. The DCF model incorporates unobservable inputs, amongst others, the forecast cash flows, long-term growth rates, cost of capital and long-term operating margins.

(cc) The fair value of money market fund is determined by reference to statements provided by the respective financial institutions, with which based on the fund managers’ statements at the reporting date.

(ii) There were no transfer between level 1 and level 2 during the financial year.

(b) Fair Value of Financial Instruments Not Carried at Fair Value

The fair values, which are for disclosure purposes, have been determined using the following basis:-

(i) The fair value of the term loans that carry floating interest rates approximated their carrying amounts as they are repriced to market interest rates on or near the reporting date.

Page 118 RESINTECH BERHAD 174 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

RESINTECHNotes to the Financial BERHAD Statements for the Financial Year Ended 31 March 2021 (Incorporated in Malaysia) Registration(cont’d) No: 199501012460 (341662 - X)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2021

46. SIGNIFICANT EVENT DURING THE FINANCIAL YEAR AND SUBSEQUENT EVENT

On 11 March 2020, the World Health Organisation declared the COVID-19 outbreak as global pandemic. Following the declaration, the Government of Malaysia has on 18 March 2020 imposed the Movement Control Order (“MCO”) and subsequently entered into various phases of the MCO to curb the spread of the COVID-19 pandemic in Malaysia.

The management has assessed the impact on the Group and of the opinion that there were no material financial impacts arising from the pandemic. Nevertheless, the Group has taken and will continue to take necessary steps to safeguard and preserve its financial condition, emphasising on liquidity management to meet its continuing financial commitments and liquidity needs.

Given the dynamic nature of the COVID-19 pandemic, it is not practicable to provide a reasonable estimate of its impacts on the Group’s financial position, operating results and cash flows at the date on which these financial statements are authorised for issue.

Page 119 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 175 ANNUAL REPORT 2021

LIST OF PROPERTIES at 31 March 2021

Build-up Area/ Approximate Carrying Date of Description/ Land Area* Registered Age of Amount Last Location Existing Use (sq.ft.) Tenure Owner Buildings (RM) valuation Lot 5, Jalan Waja 14 Single-storey 177,139/ Leasehold RPSB 21 years 26,577,744 31 March Kawasan Perindustrian detached 237,172* 99 years 2020 Telok Panglima Garang factory, a expiring on 42500 Telok three-storey 9 September Panglima Garang office block 2103 Selangor Darul Ehsan and single storey hall with additional 2 floors Lot PT 13749 Vacant 1,600* Leasehold RPSB n/a 315,248 31 March Pandamaran commercial 99 years 2020 Port Klang land expiring on Selangor Darul Ehsan 26 August 2087 Lot PT 14229 Single-storey 7,950/ Leasehold RPSB 13 years 2,248,916 31 March Pandamaran Jaya semi-detached 9,075* 60 years 2020 Industrial warehouse expiring on Mukim Klang 16 Mac Selangor Darul Ehsan 2068 Lot PT 14228 Single-storey 7,950/ Leasehold RPSB 13 years 691,316 31 March Pandamaran Jaya semi-detached 9,075* 60 years 2020 Industrial warehouse expiring on Mukim Klang 16 Mac Selangor Darul Ehsan 2068 Lot 107 Block 14 Single-storey 11,700/ Leasehold RPSB 12 years 2,881,856 31 March Batu 24, detached 139,671* 60 years 2020 Kuching/Serian Road factory expiring on Sentah/Segu Land 14 December District Kuching 2070 Division Sarawak Lot 24 & 25 Export Single-storey 37,500/ 31 December RPSB 13 years 11,021,300 31 March Oriented Industrial detached 177,821* 2096 2020 Zone Phase 2 warehouse and Kota Kinabalu a double-storey Industrial Park Sabah office block Lot 3 Jalan Waja 15 4 single-storey 168,000/ Leasehold ELSB 21 years 24,165,848 31 March Kaw Perindustrian warehouses 240,433* 99 years 2021 Telok Panglima expiring on Garang 42500 9 September Telok Panglima Garang 2103 Selangor Darul Ehsan RESINTECH BERHAD 176 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

List of Properties (cont’d)

Build-up Area/ Approximate Carrying Date of Description/ Land Area* Registered Age of Amount Last Location Existing Use (sq.ft.) Tenure Owner Buildings (RM) valuation Lot 6461 Batu 5¾ Double-storey 40,884/ Freehold RPSB 28 years 21,058,000 31 March Jalan Kapar factory building 219,978* 2021 42200 Kapar cum office Selangor Darul Ehsan block, a double storey canteen block cum store, a guard house and a motorcycle shed Sub-Lot 298, Kawasan Vacant 27,975* Leasehold RPMSB n/a 776,804 31 March Perindustrian Gebeng, industrial land 99 years 2020 Mukim Sungai Karang, expiring on Daerah Kuantan 20 February Pahang 2116 Sub-Lot 302, Kawasan Vacant 28,352* Leasehold RPMSB n/a 786,696 31 March Perindustrian Gebeng, industrial land 99 years 2020 Mukim Sungai Karang, expiring on Daerah Kuantan 20 February Pahang 2116 Lot 3911 Two and half – 34,632/ Freehold RPMSB 13 years 5,160,004 31 March Jalan Riang 21/6 Storey detached 28,880* 2020 Taman Gembira factory 81200 Johor Bahru No 13, Jalan AP 1 Three-storey 3,900/ Leasehold RPSB 17 years 200,000 31 March Taman Alai Perdana commercial 1,324* 99 years 2021 75460 Melaka office expiring 1 October 2096 Blok E2 Latrade Single-storey 5,496/ Leasehold PTRI 15 years 5,838,607 11 June Industrial Park factory 6,753* expiring 2020 Jl Sei Binti with attached 25 March Tanjung Uncang two-storey 2030 29422 Batam office Indonesia Blok E4 Latrade Vacant 8,612* Leasehold PTRI n/a 3,237,339 11 June Industrial Park industrial land expiring 28 2020 Jl Sei Binti September Tanjung Uncang 2036 29422 Batam Indonesia Blok D No 1 Single-storey 1,292/ Leasehold PTRI 12 years 159,696 11 June Top100 Mall commercial 1,152* expiring 2020 Batam shop lot 13 April 2034 RESINTECH BERHAD Registration No. 199501012460 (341662-X) 177 ANNUAL REPORT 2021

List of Properties (cont’d)

Build-up Area/ Approximate Carrying Date of Description/ Land Area* Registered Age of Amount Last Location Existing Use (sq.ft.) Tenure Owner Buildings (RM) valuation Blok D No 2 Single-storey 1,453/ Leasehold PTRI 12 years 131,661 11 June Top100 Mall commercial 883* expiring 2020 Batam shop lot 13 April 2034 Samdech Tep Two adjoining 4,907/ Freehold SPCCL 8 years 4,560,600 13 May Vong Street three-storey 2,164* 2021 Village of Mondol 1 shop flats Commune of Svay Dangkum Siem Reap Kingdom of Cambodia Lot 34, 35 & 36, Three adjoining 1,731,332* Freehold RPSB n/a 5,668,374 12 May Village Sdok Kul Tmey, vacant lands 2021 Commune Chan Sen, District Odung, Kompong Speu Province Kingdom of Cambodia A-67, Jalan Semambu Three-storey 4,800/ Freehold RPSB 5 years 1,000,000 31 March Baru 2, 25300 shop lot 1,399 2021 Kuantan, Pahang Lot 1172 Block 8 Vacant 131,147* Leasehold TCT n/a 3,659,068 – Demak Muara Tebas industrial 60 years Land land expiring 12 February 2080 Lot 1173 Block 8 Single-storey 23,443/ Leasehold RKSB 1 year 3,875,711 – Demak Muara Tebas open shed 65,778* 60 years Land factory expiring 30 March 2068 RESINTECH BERHAD 178 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

ANALYSIS OF SHAREHOLDINGS as at 26 July 2021

Issued Share Capital : 137,204,900 Class of Shares : Ordinary shares Voting Rights : one (1) vote for each ordinary share held Number of Shareholders : 1,597

DISTRIBUTION OF SHAREHOLDINGS

No. of % of No. of % of Issued Size of Shareholdings Shareholders Shareholders Shares Share Capital

Less than 100 31 1.94 1,321 0.00 100 to 1,000 184 11.52 74,080 0.05 1,000 to 10,000 811 50.78 4,453,218 3.25 10,001 to 100,000 504 31.56 15,274,360 11.13 100,001 to 6,860,244* 63 3.95 32,298,922 23.54 6,860,245 and above** 4 0.25 85,102,999 62.03

Total 1,597 100.00 137,204,900 100.00

Notes: * Less than 5% of issued shares ** 5% and above of issued shares

LIST OF SUBSTANTIAL SHAREHOLDERS ACCORDING TO THE REGISTER OF SUBSTANTIAL SHAREHOLDERS

Direct Indirect No. Substantial Shareholders Interest % Interest %

1 Dato’ Dr. Teh Kim Poo 58,975,599 42.98 17,726,302 * 12.92 2 Tema Evolusi Sdn. Bhd. 16,158,800 11.78 – – 3 Datin Gan Jew 9,968,600 7.27 66,733,301 * 48.64 4 Teh Leng Kang 7,452,702 5.43 1,595,500 * 1.16 5 Wei Hwei Hong 1,595,500 1.16 7,452,702 * 5.43

* Deemed interested by virtue of shareholdings held by spouse and/or children.

LIST OF DIRECTORS’ SHAREHOLDING ACCORDING TO THE REGISTER OF DIRECTORS’ SHAREHOLDINGS

Direct Indirect Directors Interest % Interest %

Datuk Hj. Abdul Fatah Bin Hj. Iskandar – – – – Dato’ Hj. Razif Ratha Bin Abdullah – – – – Dato’ Dr. Teh Kim Poo 58,975,599 42.98 17,726,302 * 12.92 Datin Gan Jew 9,968,600 7.27 66,733,301 * 48.64 Teh Leng Kang 7,452,702 5.43 1,595,500 * 1.16 Wei Hwei Hong 1,595,500 1.16 7,452,702 * 5.43 Kok Wee Wah – – – –

* Deemed interested by virtue of shareholdings held by spouse and/or children. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 179 ANNUAL REPORT 2021

Analysis of Shareholdings (cont’d)

THIRTY (30) LARGEST SECURITIES ACCOUNT HOLDERS FOR ORDINARY SHARES (without aggregating securities from different securities accounts belonging to the same person)

No. of No. Name Shares Held %

1 Dato’ Dr. Teh Kim Poo 35,982,790 26.23 2 Dato’ Dr. Teh Kim Poo 22,992,809 16.76 3 Tema Evolusi Sdn. Bhd. 16,158,800 11.78 4 Datin Gan Jew 9,968,600 7.27 5 Teh Leng Kang 4,200,002 3.06 6 Maybank Nominees (Tempatan) Sdn. Bhd. for Ng Wei King 3,100,000 2.26 7 Teh Leng Kang 2,715,700 1.98 8 Techvilla Engineering Sdn. Bhd. 2,250,000 1.64 9 Wei Hwei Hong 1,595,500 1.16 10 Yap Han Lian 1,389,200 1.01 11 RHB Nominees (Tempatan) Sdn. Bhd. 1,208,800 0.88 Pledged Securities Account for Tan Siew Li 12 Choo Lye Hock 848,700 0.62 13 Kow Kah Fai 810,100 0.59 14 Alliancegroup Nominees (Tempatan) Sdn. Bhd. 800,000 0.58 Pledged Securities Account for Thee Kim Yong (6000057) 15 Kenanga Nominees (Tempatan) Sdn. Bhd. 639,000 0.47 Rakuten Trade Sdn. Bhd. for Ng Chee Kuan 16 Lee Heng Poh 620,000 0.45 17 Teo Chow Seng 618,200 0.45 18 Ong Lai Wah 600,000 0.44 19 Tong Thian Tiong 588,000 0.43 20 Teh Leng Kang 537,000 0.39 21 Lim Gaik Bway @ Lim Chiew Ah 465,600 0.34 22 Mohamad Nizam Bin Yaacob 420,760 0.31 23 Ong Seng Swee @ Ong Ah Bah 400,000 0.29 24 DB (Malaysia) Nominee (Asing) Sdn. Bhd. 352,400 0.26 The Bank of New York Mellon for Acadian Emerging Markets Micro-Cap Equity Master Fund 25 Yeo Siw Nee 348,100 0.25 26 CGS-CIMB Nominees (Tempatan) Sdn. Bhd. 328,000 0.24 Pledged Securities Account for Wong Ai Lang (MQ0419) 27 Ng Seng Beng 315,100 0.23 28 Ei Kim Hock 300,000 0.22 29 Public Nominees (Tempatan) Sdn. Bhd. 300,000 0.22 Pledged Securities Account for Kong Kok Choy (SRB/PMS) 30 Gan Eu Way 280,000 0.20

TOTAL 111,133,161 81.01 RESINTECH BERHAD 180 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

NOTICE OF 26TH ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN that the Twenty-Sixth (“26th”) Annual General Meeting of Resintech Berhad will be held on a fully virtual basis via online meeting platform https://Dvote.my provided by DVote Services Sdn. Bhd. in Malaysia on Friday, 24 September 2021 at 9.00 a.m. for the purpose of considering the following businesses:

AGENDA

AS ORDINARY BUSINESS

1. To receive the Directors’ Report, Audited Financial Statements and the Auditors’ Report Please refer to for the financial year ended 31 March 2021. Explanatory Note 1

2. To re-elect the following Directors, who retire in accordance with Clause 97 of the Constitution of the Company and being eligible offer themselves for re-election:

(i) Wei Hwei Hong Ordinary Resolution 1

(ii) Dato’ Hj. Razif Ratha Bin Abdullah Ordinary Resolution 2

3. To approve the payment of Directors’ Fees amounting of RM120,750 for the financial Ordinary Resolution 3 year ended 31 March 2021.

4. To approve the payment of Directors’ Benefits payable to the Board of the Company and Ordinary Resolution 4 its subsidiaries up to an amount of RM250,000.00 for the period from 25 September 2021 until the conclusion of next Annual General Meeting.

5. To re-appoint Messrs. Crowe Malaysia PLT as Auditors of the Company until conclusion Ordinary Resolution 5 of the next Annual General Meeting and authorise the Directors to fix their remuneration.

AS SPECIAL BUSINESS

To consider and, if thought fit, to pass the following resolutions with or without any modification:

6. AUTHORITY TO ISSUE AND ALLOT SHARES

“THAT subject always to the Companies Act 2016, Constitution of the Company Ordinary Resolution 6 and approvals from Bursa Malaysia Securities Berhad and any other governmental/ regulatory bodies, where such approval is necessary, authority be and is hereby given to the Directors pursuant to Section 75 of the Companies Act 2016 to issue and allot not more than ten percent (10%) of the total number of issued shares (excluding treasury shares) of the Company at any time upon any such terms and conditions and for such purposes as the Directors may in their absolute discretion deem fit or in pursuance of offers, agreements or options to be made or granted by the Directors while this approval is in force until the conclusion of the next Annual General Meeting of the Company pursuant to Section 76 of the Companies Act 2016 and that the Directors be and are hereby further authorised to make or grant offers, agreements or options which would or might require shares to be issued after the expiration of the approval hereof.”

7. CONTINUING IN OFFICE AS INDEPENDENT NON-EXECUTIVE DIRECTOR

“THAT approval be and is hereby given to Mr. Kok Wee Wah, who has served as an Ordinary Resolution 7 Independent Non-Executive Director of the Company for a cumulative term of more than nine (9) years, to continue to act as an Independent Non-Executive Director of the Company and to hold office until the conclusion of the next Annual General Meeting of the Company.” RESINTECH BERHAD Registration No. 199501012460 (341662-X) 181 ANNUAL REPORT 2021

Notice of 26th Annual General Meeting (cont’d)

8. To transact any other business of which due notice shall have been given in accordance with the Companies Act 2016.

By Order of the Board

TAN KOK SIONG (SSM PC No. 202008001592 & LS 0009932) TAN BEE HWA (SSM PC No. 202008001174 & MAICSA 7058049) Company Secretaries

Selangor Darul Ehsan Dated this 26th day of August 2021

Notes:

1. The 26th Annual General Meeting (“AGM”) will be conducted on a fully virtual basis through electronic live streaming and online remote participation and voting (“RPV”) facilities via online meeting platform at https://Dvote.my provided by DVote Services Sdn. Bhd.

2. Members are to attend, speak (including posing questions to the Board via real time submission of typed texts) and vote (collectively, “participate”) remotely at the AGM via RPV. Members, proxies and corporate representatives/ attorneys will not be allowed to attend the AGM in person on the day of the AGM. Please follow the procedures for RPV provided in the Administrative Guide for the fully virtual AGM.

3. A member is entitled to appoint not more than two (2) proxies to attend, participate, speak, and vote in his/her stead at the meeting. A proxy may, but need not, be a member of the Company and there shall be no restriction as to the qualification of the proxy. Where a member appoints more than one (1) proxy, he shall specify the proportions of his/her holdings to be represented by each proxy, failing which the appointment shall be invalid.

4. The instrument appointing a proxy shall be in writing under the hand of the appointer or of his attorney duly authorised in writing or, if the appointor is a corporation, either under the corporation’s seal or under the hand of an officer or attorney duly authorised.

5. Where a member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, it may appoint at least one (1) proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account.

6. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one securities account (“omnibus account”), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds. Where the exempt authorised nominee appoints two (2) or more proxies to attend and vote at the same meeting, such appointment shall be invalid unless the member specifies the proportion of his holdings to be represented by each proxy.

7. The instrument appointing a proxy and the power of attorney or other authority, if any, under which it is signed or a notarially certified copy of such power or authority, shall be deposited at Boardroom Share Registrars Sdn. Bhd., 11th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia not less than forty-eight (48) hours before the time stipulated for holding the meeting or any adjournment thereof.

8. For the purpose of determining who shall be entitled to attend this meeting, the Company shall be requesting the Bursa Malaysia Depository Sdn. Bhd. to make available to the Company pursuant to Clause 62 of the Constitution of the Company, a Record of Depositors as at 17 September 2021 and only a Depositor whose name appear on such Record of Depositors shall be entitled to attend this meeting. RESINTECH BERHAD 182 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Notice of 26th Annual General Meeting (cont’d)

EXPLANATORY NOTES:

1. Item 1 of the Agenda – Directors’ Report, Audited Financial Statements and the Auditors’ Report for the financial year ended 31 March 2021

The Audited Financial Statements under this agenda item is meant for discussion only as the provision of Sections 248 and 340(1) of the Companies Act 2016 does not require a formal approval of the shareholders and hence this item is not put forward for voting.

2. Item 2 of the Agenda – Re-election of Directors [Resolutions 1 and 2]

Ms Wei Hwei Hong and Dato’ Hj. Razif Ratha Bin Abdullah are standing for re-election as Directors of the Company and being eligible, have offered themselves for re-election at the 26th Annual General Meeting (“AGM”).

The Board has through the Nomination Committee, considered the assessment of the Directors and agreed that they meet the criteria as prescribed by Paragraph 2.20A of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad on character, experience, integrity, competence and time to effectively discharge their roles as Directors.

3. Items 3 and 4 of the Agenda - Payment of Directors’ Fees [Resolution 3] - Payment of Directors’ Benefits [Resolution 4]

Pursuant to Section 230(1) of the Companies Act 2016, the fee of the Directors, and any benefits payable to the Directors including any compensation for loss of employment of a director or former director of a public company or a listed company and its subsidiaries, shall be approved at a general meeting. In this respect, the Board agreed that the shareholders’ approval shall be sought at the AGM on the Directors’ Benefits payable to the Board of the Company and its subsidiaries for the period from 25 September 2021 until the next Annual General Meeting (“Relevant Period”).

The Directors’ Benefits comprises the allowances payable to the Non-Executive Directors as set out below:

Chairman Non-Executive Directors Description RM RM Meeting Allowance 3,000 8,000 Fixed Allowance 55,000 184,000

In determining the estimated total amount of the meeting allowance, the Board considered various factors including the number of scheduled meetings for the Board and Board Committees as well as the number of Directors involved in these meetings.

Payment of Directors’ Benefits will be made by the Company and its subsidiaries on a monthly basis and/or as and when incurred if the proposed Resolution 4 has been passed at the AGM. The Board is of the view that it is just and equitable for the Directors to be paid the Directors’ benefits on a monthly basis and/or as and when incurred, particularly after they have discharged their responsibilities and rendered their services to the Company throughout the Relevant Period. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 183 ANNUAL REPORT 2021

Notice of 26th Annual General Meeting (cont’d)

EXPLANATORY NOTES: (cont’d)

4. Item 6 of the Agenda – Authority to Issue Shares [Resolution 6]

The proposed Ordinary Resolution 6, if passed, will give flexibility to the Directors of the Company to issue shares to such persons at any time in their absolute discretion without convening a general meeting. This authorisation will expire at the conclusion of next Annual General Meeting of the Company.

The purpose of this general mandate is for possible fund raising exercises including but not limited to further placement of shares for purpose of funding current and/or future investment projects, working capital, repayment of borrowings and/or acquisitions.

This is the renewal of the mandate obtained from the members at the last AGM (“the previous mandate”). The previous mandate was not utilised and accordingly no proceeds were raised.

5. Item 7 of the Agenda – Continuing in Office as Independent Non-Executive Director [Resolution 7]

The Nomination Committee and the Board had assessed the independence of Mr. Kok Wee Wah, who had served as Independent Non-Executive Director of the Company for a cumulative term of more than nine (9) years and thus, the Board recommended him to continue in office as Independent Non-Executive Director of the Company based on the following justifications:-

a. he fulfilled the criteria under the definition of Independent Director as stated in the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”), and thus, he would be able to provide check and balance and bring an element of objectivity to the Board;

b. he is familiar with the Company’s business operations and is able to advise the Board diligently on business legacy matters before the change in controlling interest;

c. he was not appointed by the current controlling shareholder and hence the issue on special relationship with or loyalty to the controlling shareholder does not arise;

d. he has devoted sufficient time and attention to his professional obligations for informed and balanced decision making by actively participated in board discussion and provided an independent voice to the Board; and

e. he has exercised his due care during his tenure as Independent Non-Executive Director of the Company and carried out his professional duties in the best interest of the Company and the shareholders. RESINTECH BERHAD 184 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

ADMINISTRATIVE GUIDE for the Twenty-Sixth Annual General Meeting

Date : Friday, 24 September 2021

Time : 9:00 a.m.

Meeting Platform : Dvote Online website at https://Dvote.my

Depository of Form of Proxy : (i) In hard copy form Boardroom Share Registrars Sdn. Bhd. 11th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia

(ii) By electronic means To be sent via e-mail to: [email protected]

MODE OF MEETING

As a result of the implementation of phase 1 of the National Recovery Plan by the Malaysian Government and the updated Guidance and FAQs on the Conduct of General Meetings for Listed Issuers revised by the Securities Commission Malaysia on 16 July 2021 (“SC Guidance Note”), the Company wishes to informed that the 26th Annual General Meeting will be conducted on a fully virtual basis through electronic live streaming and online remote voting using the Remote Participation and Voting (“RPV”) Facilities (collectively referred hereinafter as “Virtual 26th AGM”) provided by Dvote Services Sdn. Bhd. in Malaysia via its website at https://Dvote.my on Friday, 24 September 2021 at 9.00 a.m. and there would be no physical meeting venue.

The above decision is made pursuant to Section 327 of the Companies Act 2016 and Clause 59 of the Constitution of the Company. The meeting platform is the venue of the Virtual 26th AGM and is strictly for the purpose of compliance with Section 327(2) of the Companies Act 2016 and SC Guidance Note.

Pursuant to the SC Guidance Note, all meeting participants including the Chairman of the meeting, Board of Directors, Senior Management and Shareholders/Proxies are required to participate in the meeting online. Physical gatherings no matter how small are prohibited.

In line with the Malaysian Code on Corporate Governance Practice 13.3, conducting a Virtual 26th AGM, would facilitate greater shareholder participation as it facilitates electronic voting and remote shareholders’ participation. With the RPV Facilities, you may exercise your right as a member of the Company to participate (including the right to pose questions to the Board of Directors and/or Management of the Company) and vote at the Virtual 26th AGM. Alternatively, you may also appoint the Chairman of the Meeting as your proxy to attend and vote on your behalf at the Virtual 26th AGM.

ENTITLEMENT TO PARTICIPATE AND VOTE

In respect of deposited securities, only members whose names appear in the Record of Depositors as at 17 September 2021 (General Meeting Record of Depositors) shall be eligible to participate the Virtual 26th AGM or appoint proxy/ proxies to participate and/or vote on his/her behalf. RESINTECH BERHAD Registration No. 199501012460 (341662-X) 185 ANNUAL REPORT 2021

Administrative Guide (cont’d)

FORM(S) OF PROXY

Shareholders who are unable to participate in our Virtual 26th AGM are encouraged to appoint the Chairman of the Meeting as your proxy and indicate the voting instructions in the Form of Proxy.

The appointment of proxy may be made in hard copy or in electronic form. The instrument appointing a proxy must be submitted in the following manners, at least forty-eight (48) hours before the time stipulated for holding the meeting or any adjournment thereof :-

In hard copy form By electronic means To be deposited at OR To be sent via e-mail to : Boardroom Share Registrars Sdn. Bhd. [email protected] 11th Floor, Menara Symphony No. 5, Jalan Prof. Khoo Kay Kim Seksyen 13, 46200 Petaling Jaya Selangor Darul Ehsan, Malaysia

REVOCATION OF PROXY

If you have submitted your Form of Proxy and subsequently decide to appoint another person or wish to participate in the Virtual 26th AGM by yourself, please write in to [email protected] to revoke the earlier appointed proxy forty-eight (48) hours before the time for holding the meeting or any adjournment thereof.

VOTING PROCEDURE

The voting at the Virtual 26th AGM will be conducted by poll in accordance with Paragraph 8.29A of Main Market Listing Requirements of Bursa Malaysia Securities Berhad. The Company has appointed Dvote Services Sdn. Bhd. (“Dvote”) as Poll Administrator to conduct the poll by way of electronic voting or online remote voting (“e-voting”).

Kindly refer to item (2) below of the Procedures for RPV Facilities for guidance on how to vote remotely from Dvote Online website at https://Dvote.my.

During the Virtual 26th AGM, the Chairman of the Meeting will invite the Poll Administrator to brief on the e-Polling housekeeping rules. The voting session will commence as soon as the Chairman of the Meeting calls for the poll to be opened and until such time when the Chairman of the Meeting announces the closure of the poll.

For the purposes of the Virtual 26th AGM, e-voting will be carried out via personal smart mobile phones, tablets or personal computers/laptops.

Upon the conclusion of the poll session, the Scrutineers will verify the poll results followed by the declaration by the Chairman of the Meeting whether the resolutions put to vote were successfully carried or not. RESINTECH BERHAD 186 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Administrative Guide (cont’d)

VOTING PROCEDURE (cont’d)

Kindly follow the steps below on how to register, request for login ID and password:-

1. REMOTE PARTICIPATION AND E-VOTING FACILITIES

Members are to attend, speak (in the form of real time submission of typed texts) and vote (collectively, “Participate”) remotely at the Virtual 26th AGM using RPV Facilities provided by Dvote via its Dvote Online website at https:// Dvote.my. Please refer to Procedure for RPV Facilities.

2. PROCEDURES FOR RPV FACILITIES

Member(s) / proxy(ies) / corporate representative(s) / attorney(s) who wish to participate in the Virtual 26th AGM remotely using the RPV Facilities are to follow the requirements and procedures as summarised below:

BEFORE MEETING DAY - USER REGISTRATION Procedure Action (a) Sign-up as a user • Access the website at https://Dvote.my. with Dvote Online • Click on Sign up to register as a new user with Dvote Online.

• Complete registration and upload soft copy of Malaysia Identification Card (front and back) or passport (foreigner(s)).

You will be notified via email once your user registration is accepted/rejected by Dvote Online.

Note: If you are already a user with Dvote Online, you are not required to sign-up again. You may proceed to sign-in using your email address and password.

(b) Register Meeting • Registration for Remote Participation will remain open from 21 September with Dvote Online 2021 until the commencement of the polling during the Virtual 26th AGM.

• Log in to https://Dvote.my/user-login with your user ID (i.e.: email address) and password.

• Select event: RESINTECH BERHAD – 26th Annual General Meeting and click Register .

• You will receive an email notifying on your registration for the remote participation and verification.

Once your registration has been verified against the Record of Depositors as at 17 September 2021 you will be notified via email whether your request for remote participation is approved/rejected.

• If approved, you will receive an invitation email together with the meeting link to Join Meeting . RESINTECH BERHAD Registration No. 199501012460 (341662-X) 187 ANNUAL REPORT 2021

Administrative Guide (cont’d)

VOTING PROCEDURE (cont’d)

Kindly follow the steps below on how to register, request for login ID and password:- (cont’d)

2. PROCEDURES FOR RPV FACILITIES (CONT’D)

Member(s) / proxy(ies) / corporate representative(s) / attorney(s) who wish to participate in the Virtual 26th AGM remotely using the RPV Facilities are to follow the requirements and procedures as summarised below: (cont’d)

ON THE DAY OF VIRTUAL 26TH AGM Procedure Action (a) Join the Live • Click on Join Meeting link in the invitation email and you will be directed Stream Meeting to the live streaming room.

• You are advised to log in early, at least 20 minutes, before the Meeting time.

(b) Post Questions • If you have any question(s) for the Board of Directors, you may use the during Live Streaming Post Question box to transmit your question(s).

(c) Online Voting • Click on Proceed to Vote , to cast your votes for each resolution(s). during Live Streaming • Review your casted votes, confirm and submit your votes

Notes to users of the RPV Facilities:

(i) The quality of the live streaming is highly dependent on the bandwidth and stability of the internet connection at the location of the user and the device of the user. (ii) Users are advised to allow themselves ample time to complete the log in process in advance of the meeting. (iii) In the event you encounter any issues with logging-in, connection to live streamed meeting or online voting on the meeting day, kindly call +603-2276 6138 and email to [email protected] for assistance.

APPOINTMENT OF PROXY(IES)/CORPORATE REPRESENTATIVE(S)/ATTORNEY(S)

A member who has appointed a proxy(ies) / authorised representative(s) / attorney(s) to participate in the Virtual 26th AGM via RPV Facilities must request his/her proxy(ies) / authorised representative(s) / attorney(s) to register himself / herself for RPV Facilities via Dvote Online website at https://Dvote.my.

NO DOOR GIFTS OR FOOD VOUCHERS

There will be no distribution of food vouchers or door gifts during the Virtual 26th AGM as the meeting is conducted on a fully virtual basis.

NO RECORDING OR PHOTOGRAPHY

Strictly no recording or photography of the Virtual 26th AGM proceedings is allowed. RESINTECH BERHAD 188 Registration No. 199501012460 (341662-X) ANNUAL REPORT 2021

Administrative Guide (cont’d)

ENQUIRY

If you have any enquiry relating to the meeting or Agenda of 26th AGM prior to the meeting, please contact the following Company’s reprepsentative during office hours from Monday to Friday (except for public holiday) :-

Contact Person : Ms Wei Hwei Hong Telephone No. : +603 3122 2422 / 2428 Email : [email protected]

If you have any enquiry(ies) relating to the Administrative Guide for the Virtual 26th AGM, RPV Facilities or encounters issues with the pre-registration, log in, steps to connect to live streaming and online voting, please contact Dvote during office hours from Monday to Friday (except for public holiday) :-

Dvote Services Sdn. Bhd. Lot 9-7, Menara Sentral Vista No. 150, Jalan Sultan Abdul Samad Brickfield, 50470 Kuala Lumpur

Contact Person : Mr Hugo Wong / Ms Sangetha Telephone No. : +603-2276 6138 Email : [email protected]

As the COVID-19 situation continues to evolve, the Company will closely monitor the situation and reserves the right to take further measures as appropriate and comply with any requirements or recommendation of any government agencies from time to time.

Kindly check the Company’s website or announcements from time to time for the latest updates on the status or changes to the Virtual 26th AGM’s arrangement.

The Company seeks the understanding and cooperation of all Shareholders to minimise the risk of community spread of COVID-19. ✄ of being amember(s)ofRESINTECHBERHAD(“Company”), hereby appoint: NRIC/Passport/Company No. *I/We, inMalaysia)(Incorporated [Registration No.199501012460(341662-X)] 3. 2. 1. Notes: Signed this Signature/Common SealofShareholder indicated inthespaceabove, ofMeeting willvoteashe/shethinksfit. the proxy/proxies ortheChairman are Please indicatewithan“X”intheappropriateboxesonhowyouwishyourvotetobecast.Unlessvotinginstructions * Deletewhichever isnotapplicable *My/our *proxy/proxies*is/aretovoteasindicatedbelow: CHAIRMAN OF desired. /persons THE MEETING” thename/namesofperson andinsert tobeyourproxy /proxies, /persons # Ifyouwishtoappointotherperson kindlydeletethewords “or failing him/her, #THE any thereofandvoteasindicatedbelow: adjournment https://Dvote.my provided by DVote Sdn. Bhd.inMalaysia onFriday, Services 24September2021at9:00a.m.and Twenty-Sixth basisviaonlinemeetingplatform (26th)AnnualGeneralMeetingoftheCompany tobeheldonafullyvirtual or failing *him/her, # THE CHAIRMAN OF THE MEETING as *my/our proxy to attend and vote on *my/our behalf at the ORDINARY RESOLUTIONS *And/or (deleteasappropriate) Full Name 7. 6. 5. 4. 3. 2. 1. by eachproxy, failingwhichtheappointmentshallbeinvalid. proxy. Whereamemberappointsmorethanone(1)proxy, ofhis/her holdingstoberepresented heshallspecifytheproportions Aproxy may,meeting. butneednot, beamember oftheCompany andthereshallbenorestrictionastothequalificationof the A memberisentitledtoappointnot morethantwo(2)proxiestoattend, participate,speak, andvoteinhis/hersteadatthe AGM. Guide forthefullyvirtual allowed toattend the AGMonday inperson oftheAGM. PleasefollowtheproceduresforRPVprovided intheAdministrative (collectively, remotely at the AGM via RPV. “participate”) Members, representatives/attorneys will not be proxies and corporate aretoattend,Members speak(includingposingquestionstotheBoard viarealtimesubmissionoftypedtexts)andvote Sdn. Bhd. at and voting (“RPV”) facilities via online meeting platform remote participation The 26thAnnualGeneralMeeting(“AGM”) basisthroughelectroniclivestreamingandonline willbeconductedonafullyvirtual To approve the continuance of Mr Kok Wee Wah as Independent Non-Executive Director To approve theauthoritytoIssueandAllotShares To Crowe re-appointMessrs. Malaysia PLT oftheCompany. asAuditors its subsidiaries. To approve thepayment Benefitspayable ofDirectors’ totheBoardofCompany and To approve thepayment Fees ofDirectors’ forthefinancialyearended31March2021. To re-electDato’Hj.Razif RathaBinAbdullahasaDirectorofthe Company. To re-electMs.Wei Hwei HongasaDirectoroftheCompany. day of NRIC/Passport No. NRIC/Passport (NAME INFULLANDBLOCKLETTERS) (FULL ADDRESS) Contact No. Sharesheld No. ofOrdinary CDS AccountNo. Address 2021 ContactNo. https://Dvote.my provided by DVote Services FORM OFPROXY FOR Shareholdings (%) Proportion of Proportion AGAINST

Notes: (cont’d) 4. The instrument appointing a proxy shall be in writing under the hand of the appointer or of his attorney duly authorised in writing or, if the appointor is a corporation, either under the corporation’s seal or under the hand of an officer or attorney duly authorised. 5. Where a member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, it may appoint at least one (1) proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account. 6. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one securities account (“omnibus account”), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds. Where the exempt authorised nominee appoints two (2) or more proxies to attend and vote at the same meeting, such appointment shall be invalid unless the member specifies the proportion of his holdings to be represented by each proxy. 7. The instrument appointing a proxy and the power of attorney or other authority, if any, under which it is signed or a notarially certified copy of such power or authority, shall be deposited at Boardroom Share Registrars Sdn. Bhd., 11th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia not less than forty-eight (48) hours before the time stipulated for holding the meeting or any adjournment thereof. 8. For the purpose of determining who shall be entitled to attend this meeting, the Company shall be requesting the Bursa Malaysia Depository Sdn. Bhd. to make available to the Company pursuant to Clause 62 of the Constitution of the Company, a Record of Depositors as at 17 September 2021 and only a Depositor whose name appear on such Record of Depositors shall be entitled to attend this meeting.

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AFFIX STAMP

THE SHARE REGISTRARS RESINTECH BERHAD c/o Boardroom Share Registrars Sdn. Bhd. 11th Floor, Menara Symphony No. 5, Jalan Prof. Khoo Kay Kim Seksyen 13, 46200 Petaling Jaya Selangor Darul Ehsan, Malaysia

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Fold This Flap For Sealing

Registration No. 199501012460 (341662-X) Registration No. 199501012460 2021 Spirit of New Directions New of Spirit ANNUAL REPORT

Resintech Berhad ANNUAL REPORT 2021 Registration No. 199501012460 (341662-X)

: [email protected] : 603-3122 2411 : 603-3122 2422 Email www.resintechmalaysia.my Fax 42500 Telok Panglima Garang 42500 Telok Resintech Berhad Registration No. 199501012460 (341662-X) 14 Lot 3 & 5, Jalan Waja Panglima Garang Kawasan Perindustrian Telok Selangor Darul Ehsan, Malaysia Tel