annual report 2013 jalan raja chulan 50200 kuala lumpur tel: (603) 2032 2895 fax: (603) 2032 2893...

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annual report 2013

4 CorporateInformation 6 CorporateStructure 8 FinancialHighlights 10 CorporateHighlightsandEvents 12 BoardofDirectors&

ProfileofDirectors

16 Chairman’sStatement 22 AuditCommitteeReport 28 CorporateGovernanceStatement 35 StatementonRiskManagement

andInternalControl

Contents

37 StatementonDirectors’ResponsibilityinRelationtotheAuditedFinancialStatements

38 FinancialStatements

96 AdditionalComplianceInformation

99 AnalysisofShareholdings 101 ListofGroupProperties 102 NoticeoftheSixthAnnualGeneralMeeting

106 StatementAccompanyingNoticeofAnnualGeneralMeeting

FormofProxy

4 Yoong Onn Corporation BerhadAnnual Report 2013

Corporate InformatIon

BOARD OF DIRECTORSDatuk Kamaludin Bin YusoffIndependent Non-Executive Chairman

Chew Hon FoongManaging Director and Group Chief Executive Officer

Chew Hon KeongExecutive Director and Group Chief Operating Officer

Datuk Hairuddin Bin MohamedIndependent Non-Executive Director

Yeoh Chong KengIndependent Non-Executive Director

Lee Kim SengIndependent Non-Executive Director

AUDIT COMMITTEELee Kim Seng(Chairman)Yeoh Chong KengDatuk Hairuddin Bin Mohamed

NOMINATION COMMITTEEYeoh Chong Keng(Chairman)Datuk Hairuddin Bin MohamedLee Kim Seng

REMUNERATION COMMITTEEYeoh Chong Keng(Chairman)Datuk Kamaludin Bin YusoffChew Hon Foong

COMPANY SECRETARYDato’ Tang Swee Guan(MIA5393)

REGISTERED OFFICESuite13A.01(A)Level13AWismaGoldhill67JalanRajaChulan50200KualaLumpurTel: (603)20322895Fax: (603)20322893

HEAD OFFICELotNo.PT16690-16692JalanPermata2Arab-MalaysianIndustrialPark71800Nilai,NegeriSembilanDarulKhususTel: (606)7996012Fax: (606)7997015Website:www.yoongonn.com

SHARE REGISTRARSymphonyShareRegistrarsSdnBhdLevel6,SymphonyHousePusatDaganganDana1JalanPJU1A/4647301PetalingJaya,SelangorTel: (603)78418000Fax: (603)78418151

PRINCIPAL BANKERSAmBank(M)BerhadHongLeongBankBerhadUnitedOverseasBank(Malaysia)Bhd

AUDITORSCroweHorwath(AF1018)

SOLICITORSIzaNgYeoh&Kit

STOCK EXCHANGE LISTINGMainMarketofBursaMalaysiaSecuritiesBerhadSector:ConsumerProductsStock Name:YOCBStock Code:5159

INVESTOR RELATIONS AND ENQUIRIESJon Tan [email protected]: (603)91725012


Corporate struCture

YOONG ONN CORPORATION BERHAD(814138-K)

Distribution /Trading andInstitutional

Supply

Distributionand

TradingRetailing

Design /Manufacturing

and Trading

SLEEP FOCUSSDN BHD

401252-V

SYARIKATYOONG ONN

SDN BHD171966-W

ELEGANTTOTAL HOME

SDN BHD268537-K

MONSIEUR (M)SDN BHD

121889-W

100% 100% 100% 100%



fInanCIaL HIGHLIGHts

PROFIT AFTER TAXRM’000

TOTAL SHAREHOLDERS’ EQUITYRM’000

PROFIT BEFORE TAX RM’000

REVENUERM’000

0

5,000

10,000

15,000

20,000

25,000

30,000

0

20,000

40,000

60,000

80,000

100,000

140,000

120,000

2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

2009 2010 2011 2012 20132009 2010 2011 2012 2013

0

20,000

18,000

20,000

22,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

0

127,541

130,084

178,607

141,002

25,309

21,663

18,645

27,680

110,627

91,771

60,973

139,339

18,302

15,528

13,881

20,453

23,482

124,486

17,277

153,913

Audited

30 June 2009 30 June 2010 30 June 2011

Revenue (RM’000) 130,084 127,541 141,002

18,645 21,663 25,309

Minority Interests (RM’000)

Profit Before Tax (RM’000)

Profit After Tax and 13,881 15,528 18,302

Total Shareholders’ Equity (RM’000) 60,973 91,771 110,627

30 June 2013

178,607

27,680

20,453

139,339

30 June 2012

153,913

23,482

17,277

124,486

Pro-forma


Corporate HIGHLIGHts and events

Annual General Meeting & Awards Presentation

Oversea EXPO and Trade Fair Licence Manufacturing Signing Agreement

11Yoong Onn Corporation BerhadAnnual Report 2013

Staff Training

Company Dinner, Party & Fiesta

Corporate Highlights and events (cont’d)

Company Trip and Convention


CHEW HON FOONG Managing Director and Group Chief Executive Officer

Malaysian

ChewHonFoong,aged54,wasappointedtotheBoardofYoongOnnCorporationBerhadon17April2008.HeisalsoamemberoftheRemunerationCommitteeoftheCompany.

As the co-founder, he hasmore than thirty (30) yearsof experience in thehome linen industry.Hehasbeeninstrumentalinthedevelopment,growthandsuccessoftheYoong Onn Corporation Berhad Group during histenurewiththeGroup.

Hestartedhiscareerin1979whenhejoinedYoonOn,a partnership company, which is involved in tradingandretailingoftextilesandhomelinen.Withhisstrongbusiness acumen, he was involved in developing andcreatingownbrandsofbed linenwhichwasmarketedunderthenamesDianaandNovellein1982.

In1988,togetherwithhisbrother,ChewHonKeong,heestablishedSyarikatYoongOnnSdnBhdandtookovertheentirebusinessofthepartnershipcompany,YoonOn.Hismainintentionistoexpandthebusinesstoincludeinternational trades. Besides overseeing the Groupactivities, he is actively involved in creating fabricdesigns for both the mass and niche markets. He hasextensive experience in the development and creationof home linen designs and he is currently heading theGroup’sin-housedesignteam.HeismainlyresponsiblefortheoveralloperationsoftheGroupwithemphasisonstrategicbusinessplanningandpromotingbrandequityofproducts.

He does not have any other directorships of publiccompanies.

profILe of dIreCtors

DATUK KAMALUDIN BIN YUSOFF Independent Non-Executive Chairman

Malaysian

DatukKamaludinBinYusoff, aged 65,was appointedto the Board of Yoong Onn Corporation Berhadon 28 September 2009. He is also a member of theRemunerationCommitteeoftheCompany.

He holds BA (Honours) from University Malaya in1974. Datuk Kamaludin started his career in 1974 asanAdministrativeandDiplomaticOfficerinthepublicsector and subsequently, he held various distinguishedpositions in the Ministry of Finance, Ministry ofDefence, Road Transport Department and Ministryof Entrepreneur Development. In appreciation to hisservices, Datuk Kamaludin has been awarded withvariousaccolades.In2000,hewasawardedtheBintangPanglimaGemilangDarjahKinabalu (P.G.D.K)whichcarriesthetitle“Datuk”.

Datuk Kamaludin also sits on several boards in thecorporatesector.From2004to2007,hewastheChiefOperatingOfficerofFomemaSdnBhd.Heiscurrentlythe Chairman of Johore Tin Berhad, Executive ViceChairman of Loh & Loh Constructions Sdn Bhd (asubsidiarycompanyofLoh&LohCorporationBerhad)Executive Director of Supremme Systems Sdn Bhdand also holds directorship in other private limitedcompanies.


profile of directors (cont’d)

DATUK HAIRUDDIN BIN MOHAMEDIndependent Non-Executive Director

Malaysian

Datuk Hairuddin Bin Mohamed, aged 63, wasappointed to the Board of Yoong Onn CorporationBerhad on 28 September 2009. He is also amemberoftheAuditCommitteeandNominationCommitteeoftheCompany.

Datuk Hairuddin obtained his Bachelor in SocialScience (Honours) fromUniversiti SainsMalaysia in1980. He joined the Royal Malaysian Police Forcein 1970. He was since promoted to various seniorpositions.HewasappointedtheDirectorofCommercialCrimeDepartment inRoyalMalaysiaPolice in2005,apositionhehelduntilhisretirementin2006.DuringhistenureasHeadofCommercialCrimeDepartment,hewasappointedtobeamemberoftheHighPoweredCorporate Governance Committee to oversee allgovernment-linked companies in the country. He haswide experience in fraud detection and commercialcrimeinvestigation.

He does not have any other directorship of publiccompanies.

CHEW HON KEONGExecutive Director and Group Chief Operating Officer

Malaysian

ChewHonKeong,aged53, is theco-founderandwasappointed to the Board of Yoong Onn CorporationBerhadon17April2008.

Hehasmorethanthirty(30)yearsofexperienceinthehome linen industry. His career started in 1979 whenhejoinedYoonOn,apartnership,whichisinvolvedintradingandretailingoftextilesandhomelinen.HealsoassistedinestablishingSyarikatYoongOnnSdnBhdin1988.

AstheotherpartnerofYoonOn,hewasalsoinvolvedin many aspects of the business in textiles and homelinen,whichincludestechnicalspecificationinfabrics.His capability has enabled the Company to developnewrangeofproducttocaterfordifferentmarketsandindustries.

Withanin-depthknowledgeintheproductionprocesses,he together with his brother, Chew Hon Foong wereinvolved in theestablishmentofSleepFocusSdnBhdin 1996 and the construction of Nilai manufacturingplant for the Group’s manufacturing operations. Heis primarily responsible in overseeing the overallmanagement and strategic business development oftheGroupwith emphasis onproduct development andproductresearch.

He does not have any other directorships of publiccompanies.



YEOH CHONG KENGIndependent Non-Executive Director

Malaysian

Yeoh Chong Keng, aged 61, who is a lawyer byprofession andwas appointed to the Board ofYoongOnnCorporationBerhadon28September2009.Healsoservesas theChairmanof theNominationCommitteeand Remuneration Committee and a member of theAuditCommitteeoftheCompany.

He obtained his Barrister-at-law from Lincoln’s Inn,Englandin1980.HewasaseniorpoliceofficerintheRoyal Malaysian Police Force before proceeding tostudylawatLincoln’sInn,England.HewascalledtotheEnglishBarandMalaysianBar in1980and1981respectively and is the Managing Partner of a legalfirminKualaLumpur.HehasalsoactedascounselfortheGovernmentofHongKong.He is anexperiencedlawyerspecialisingincorporateandbankinglaw.

Hehas, in thepastservedasanIndependentDirectorinseveralpublic listedcompanies.Since14February2000, he is an Independent Director of The StoreCorporation Berhad. He is also the Chairman of theNominationCommitteeandservesasamemberintheAuditCommitteeandRemunerationCommitteeofTheStoreCorporationBerhad.

HeisalsocurrentlyanIndependentDirectorofTokioMarineLife InsuranceBhd.Hehasheld thispositionsince2002andistheChairmanoftheRiskManagementandNominationCommitteeaswell asmemberof theAuditCommittee.


LEE KIM SENG Independent Non-Executive Director

Malaysian

Lee Kim Seng, aged 68, was appointed to the Board of Yoong OnnCorporationBerhadon28September2009.HealsoservesastheChairmanoftheAuditCommitteeandamemberoftheNomineeCommitteeoftheCompany.

He is a member of the Malaysian Institute of Accountants, MalaysianInstituteofTaxationandTheInstituteofInternalAuditors,Malaysia.Hewaspreviouslyamemberof the InstituteofCharteredAccountants inEnglandandWales.

He hasmore than thirty (30) years of relevantworking experience in thevariousservicesencompassingupstreamanddownstreamindustries.HejoinedHarrisons&Crosfield(Sabah)Sdn.Bhd.in1976asaSeniorAccountant.HewassubsequentlytransferredtoHarrisons&Crosfield(Malaysia)Sdn.Bhd.in1980andafterayear,hewaspromotedtoChiefAccountant.Thereafter,hewaspromotedtoAssociateDirector(Finance)in1986.

In1987,he joinedSPHoldingsLtd. inPapuaNewGuinea.Thereafter, in1990, he joined a plantation group Raja Garuda Mas (“RGM”) based inMedan,Indonesia.In1993,hewaspromotedtoGroupFinancialControlleroftheForestryDivisionoftheRGMgroup.In1996,hewastransferredtoa joint-venture oil palmplantation group, jointly owned by theRGMandthe SALIM group. In 1997 after completing his assignment, hewas thentransferredtoapublic listedsubsidiaryofRGMgroupasSeniorFinancialController.

In2004,hejoinedSinarMasGroup(“SMG”)asVice-PresidentofInternalAuditofaforestrygroupoperatinginRiau,Sumatera.HewasthentransferredtothepositionofVice-PresidentBusinessControlin2005.Afterayear,hewastransferredtotheheadofficeofSMG,Jakarta,asanadvisertoManagingDirector-Finance,ForestryDivisionuntilhisretirementin2008.

He does not have any other directorships of public listed companies.Currently,he is involved inengineeringandconstructionaswellas in theminingbusiness.

Notes to Profile of Directors:

1. ChewHonKeong is the brother ofChewHonFoong

Save as disclosed, none of thedirectorshasanyfamilyrelationshipwithanydirectoroftheCompany.

2. Save for Chew Hon Foong, ChewHon Keong and Yeoh ChongKeng, who have interest inrecurrent relatedparty transactionsas disclosed in item 11 underadditional compliance informationin thisAnnualReport, none of thedirectorshasanyconflictofinterestwiththeCompany.

3. None of the directors has beenconvictedofanyoffenceswithinthepastten(10)yearsotherthantrafficoffences,ifany.

4. Please refer to the analysis ofshareholdings of this AnnualReport for details of the directors’shareholdingsintheCompany.

5. Save for Chew Hon Keong, whoattended 4 Board meetings, alldirectors attended all the five (5)Board meetings of the Companyheldduringthefinancialyearended30June2013.



CHaIrman’s statement

Dear Shareholders,On behalf of the Board of Directors, I am pleased to present the Annual Report and Audited Financial Statement of Yoong Onn Corporation Berhad and its Group of Companies (“The Group”) for the financial year ended 30 June 2013.


Chairman’s statement (cont’d)

REVIEW OF FINANCIAL PERFORMANCE

For thefinancialyearended30June2013, theGroupachievedsales revenueofRM178.61million,agrowthof16.05%orRM24.70millionfromRM153.91millioninthepreviousfinancialyear2012.ThegrowthwasmainlyattributedfromtheGroup’sdomesticsales.

TheGroupreportedahigherprofitbeforetaxofRM27.68millionforthefinancialyear2013,whichis17.89%orRM4.20millionhigherthantheprofitbeforetaxofRM23.48millionreportedinthepreviousyear2012.Higherprofitbeforetaxwasattributabletohighersalesgeneratedandoperationefficiency.

Shareholders’ fundshas increasedby11.93%orRM14.85million toRM139.34millioncompared toRM124.49millionpreviously.TheGrouphasahealthycashbalanceofRM41.36millionandbankborrowingsofRM24.12million,whencomparedtocashbalanceofRM29.91millionandbankborrowingsofRM20.81millionlastyear.


OPERATION REVIEW

The Group’s domestic operations had continued to be the maindriver of its revenues and profits, and bed linen and beddingaccessories made up the bulk of the Group’s revenue. Domesticoperations accounted for 81.85% or RM146.20 million of thegroup’s consolidated revenues or an increase ofRM24.50millionor20.13%ascomparedtoRM121.70millionintheprecedingyear.

Inthedomesticmarket,ourproductsaresoldunderourhomegrownbrandsthroughoursixteen(16)fullyownedboutiquesshops,morethan180countersatthepremierdepartmentstores,specialtystores,hypermarketsandintermediaries.

Fortheyearunderreview,theGroupreceivedseveralappreciationawardsfromitstradingpartnersfortherecognitionofitsoutstandingsales performance including top 10 Performing Company,OutstandingAnnualSales,CommendableSalesGrowthAwardsandPreferredBusinessPartnerAwards.

In line with the Group’s business expansion plan, the Group hasstrategicallysignedupwithrelevantpartiestolaunchnewbeddingand bath products under Santa Barbara Polo and Pororo brands,opened additional counters, launched new products includingfurniture related products, refurbished several Home’s HarmonyBoutique shops, setting up Home’s Harmony online tradingdepartment and identifying more export business partners anddistributors.

FUTURE PROSPECTS

Despitethechallengingglobaleconomy,theMalaysianeconomyremainresilientanddomesticdemandcontinuestoaddimpetustoMalaysia’sgrowthwith the implementationof theGovernment’s10thMalaysiaPlanandtheEconomicTransformationProgrammetoboostnationalproductivity,percapitaincomeandconsumption.

The Group’s efficient business model and operations, financialstability and wide distribution network are the underlyingfundamental strengths of the company. We are optimistic ourbusinesswill remain strong for the rest of theyear and in2014,despite a less robust global economic outlookwhichmay affectour domestic performance and our exportmarkets in the region.TheGroupaimstogrowfromstrengthtostrengthovertheyearsandtoachievesustainablegrowthinsalesandprofitseveryyear.

The Group expects to be able to sustain its performance in thefinancial year ending 2014 based on its fundamentals andbusinessstrategiesthatwillallowit towithstandanyunexpectedadverse tradingconditions.TheGroupshallcontinue toseizeallopportunities presented and to reach out to our consumers andcreateawidermarketsegmentinMalaysiaandintheregion.Withateamofdynamicleadersandcapablestaff,IamcertaintheGroupwillbecomeahome-grownnametobeacknowledgedbothlocallyandinternationally.




CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Group recognises that acting responsibly and sustainably create values for the company’s employees,customers,communities,shareholders,andsocietyasawhole.

TheGroup initiated severalCSR activities during the year by presenting donations to several charities andorganisations.Inadditiontothis,theGroupprovidesasafeandhealthyworkingenvironmentforallemployeesunder the requirements of Health, Safety and Environment through various in-house and external trainingprogrammes.

TheGrouphasalsocompliedwiththerelevantenvironmentallegislationandpromotesenvironmentalawarenessaspartofitscommitmenttoprotecttheenvironmentandcontributetowardssustainabledevelopment.


DIVIDEND

TheBoardofDirectorsispleasedtorecommendafinalsingletiertaxexemptdividendof4%or2.0senperordinaryshareamountingtoRM3.20millioninrespectofthefinancialyearended30June2013forshareholders’approvalintheforthcomingAnnualGeneralMeeting.

Coupledwith the interimdividendof 4%or 2 senper ordinary share amounting toRM3.20millionpaidon29July2013,thismakesatotaldividendpayoutof8%or4.0senperordinaryshareamountingtoRM6.40millionor31.29%oftheprofitaftertaxofRM20.45millionforthisfinancialyear2013.

TheGroupwillcontinuetoenhancereturnstoshareholderswhilstseeingthatappropriatefundsaresetasideforbusinessexpansionandotherpurposessuchascapitalexpenditureandforworkingcapital.

ACKNOWLEDGEMENT

OnbehalfoftheBoard,ItakethisopportunitytothankmyfellowBoardmembers,themanagementteamandstafffortheircontributions,commitment,hardworkandservicetotheGroup.

IalsothankourshareholdersforthetrustandconfidenceinmeandmyteamoffellowDirectorsandteamleaders,andtoallourbusinessassociates,governmentagencies,bankers,advisors,customers,suppliersandtradingpartners,foryourunfailingsupporttotheGroup.

Datuk Kamaludin Bin YusoffChairman



TheAuditCommitteeofYoongOnnCorporationBerhadispleasedtopresenttheAuditCommitteeReportforthefinancialyearended30June2013.

COMPOSITION OF THE AUDIT COMMITTEE

ThepresentmemberoftheAuditCommitteeare:

Name Designation Directorship Mr.LeeKimSeng Chairman IndependentNon-ExecutiveDirectorDatukHairuddinBinMohamed Member IndependentNon-ExecutiveDirectorMr.YeohChongKeng Member IndependentNon-ExecutiveDirector

TERMS OF REFERENCE OF AUDIT COMMITTEE

(a) Terms of Membership

TheAuditCommitteeshallbeappointedbytheBoardofDirectorsamongstitsmembersandconsistofatleastthree(3)members,ofwhomallmustbeNon-ExecutiveDirectorswithamajorityofthembeingIndependentDirectors.TheChairman,whoshallbeelectedbytheAuditCommittee,mustbeanIndependentDirector.

TheCommitteeshallincludeonememberwhoisamemberoftheMalaysianInstituteofAccountants(“MIA”);orifheisnotamemberoftheMIA,hemusthaveatleastthree(3)years’workingexperienceandhemusthavepassedtheexaminationsspecifiedinPart1oftheFirstScheduleoftheAccountantsAct1967;orhemustbeamemberofoneoftheassociationsofaccountantsspecifiedinPartIIoftheFirstScheduleoftheAccountantsAct1967;orhemustholdadegree/master/doctorateinaccountingorfinanceandhaveatleast3years’postqualificationexperienceinaccountingorfinance;orhemusthaveatleast7years’experiencebeingachieffinancialofficerofacorporationorhaving the functionofbeingprimarily responsible for themanagementofthefinancialaffairsofacorporationorfulfillssuchotherrequirementsasprescribedorapprovedbyBursaMalaysiaSecuritiesBerhad(“BursaSecurities”)

In the event of any vacancy in the Audit Committee resulting in the non-compliance with the ListingRequirementsofBursaSecurities,theBoardshallappointanewmemberwithinthree(3)months.

TheBoardofDirectorsshallreviewthetermofofficeandtheperformanceofanAuditCommitteeandeachofitsmembersatleastonceineverythree(3)years.

NoalternateDirectorshallbeappointedasamemberoftheAuditCommittee.

audIt CommIttee report


audit Committee report (cont’d)

TERMS OF REFERENCE OF AUDIT COMMITTEE (cont’d)

(b) Meetings and Quorum of the Audit Committee

InordertoformaquoruminrespectofameetingoftheAuditCommittee,themajorityofthememberspresentmustbeIndependentDirectors.TheCompanySecretaryshallactassecretaryoftheAuditCommitteeandshallberesponsible,inconjunctionwiththeChairman,fordrawinguptheagendaandcirculatingitpriortoeachmeeting.

TheAuditCommitteemet five (5) times during the financial year ended 30 June 2013.The details of theattendanceofthemeetingsaredisclosedundertheheading“AttendanceoftheAuditCommitteeMeetings”onpage25ofthisAnnualReport.

TheAuditCommitteemayrequiretheattendanceofanymanagementstafffromFinance/AccountsDepartmentor other departments deemed necessary togetherwith a representative or representatives from the externalauditorsand/orinternalauditors.

Inallfive(five)meetings,theChiefFinancialOfficerwaspresenttoreportontheresultsoftheGroupaswellastoanswerquestionsposedbytheAuditCommitteeinrelationtotheresultstobeannounced.DuringtheseAuditCommitteemeetings,representativesfromtheinternalauditorshadalsobeenpresenttoprovideupdatesontheprogressof internalauditworkthathavebeenconductedtodate,andtoalsoprovidecommentsandrecommendations,whereapplicabletoimprovetheriskmanagementframeworksupportingtheactivitiesoftheGroup.

In any event, should the external auditors request, the Chairman of theAudit Committee shall convene ameetingofthecommitteetoconsideranymattertheexternalauditorsbelieveshouldbebroughttotheattentionoftheDirectorsorshareholders.

(c) Functions of the Audit Committee

ThedutiesandresponsibilitiesoftheAuditCommitteeincludethefollowing:-

1. to consider the appointment of the external auditor, the audit fee and anyquestionsof resignationordismissal;

2. todiscusswiththeexternalauditorbeforetheauditcommences,thenatureandscopeoftheaudit,andensureco-ordinationwheremorethanoneauditfirmisinvolved;

3. todiscusswiththeexternalauditorontheevaluationofthesystemofinternalcontrolsandtheassistancegivenbytheemployeestotheexternalauditors;

4. toreviewandreporttotheBoardifthereisreason(supportedbygrounds)tobelievethattheexternalauditorisnotsuitableforreappointment;

5. to review the quarterly and year-end financial statements of theCompanyandGroupprior to the approval of theBoard, focusingparticularlyon:

a. changes in or implementation ofmajor accounting policiesandpractices;

b. significantadjustmentsarisingfromtheaudit;

c. thegoingconcernassumption;and

d. compliancewithaccountingstandardsandotherlegalrequirements.



(c) Functions of the Audit Committee (cont’d)

6. to discuss problems and reservations arising from the interim andfinalaudit,andanymattertheauditorsmaywishtodiscuss(intheabsenceofthemanagementwherenecessary);

7. to review the external auditor’s management letter andmanagement’sresponse;

8. todothefollowinginrelationtotheinternalauditfunctions:-

a. review the adequacy of the scope, functions, competencyand resources of the internal audit function, and that it has thenecessaryauthoritytocarryoutitswork;

b. review the internal audit programmeand the results of the internal auditprocessesorinvestigationundertakenandwherenecessarytoensuretheappropriateactionistakenontherecommendationsoftheinternalauditfunction;

c. reviewanyappraisalorassessmentoftheperformanceoftheinternalauditfunction;

d. approveanyappointmentorterminationoftheinternalauditor;

e. inform itself of resignations of internal auditor and provide the resigning internal auditor anopportunitytosubmithisreasonsforresigning.

9. to review any related party transactions and conflict of interest situation that may arise within theCompanyortheGroup;

10. toconsiderthemajorfindingsofinternalinvestigationsandthemanagement’sresponse;and

11. toconsideranyotherfunctionsordutiesasmaybeagreedbytheCommitteeandtheBoard.

(d) Rights of the Audit Committee

TheAuditCommitteehasensuredthatitshall,wherevernecessaryandreasonablefortheperformanceofitsdutiesandinaccordancewithaproceduredeterminedbytheBoard:-

1. haveauthoritytoinvestigateanymatterwithinitstermsofreference;

2. havetheresourceswhicharerequiredtoperformitsduties;

3. havefullandunrestrictedaccesstoanyinformationpertainingtotheCompanyandGroup;

4. havedirectcommunicationchannelswith theexternalauditorsandperson(s)carryingout the internalauditfunctionoractivity(ifany);

5. beabletoobtainindependentprofessionalorotheradvicewhenneeded;and

6. be able to convene meetings with the external auditors, the internal auditors or both, excluding theattendanceofotherdirectorsandemployeesoftheGroup,wheneverdeemednecessary.





(e) Procedure of Audit Committee

TheAuditCommitteeregulatesitsownproceduresby:-

1. thecallingofmeetings;

2. thenoticetobegivenofsuchmeetings;

3. thevotingandproceedingsofsuchmeetings;

4. thekeepingofminutes;and

5. thecustody,protectionandinspectionofsuchminutes.

(f) Review of the Audit Committee

TheBoardofDirectorsshallensurethatthetermofofficeandperformanceoftheAuditCommitteeandeachof itsmembers are being reviewed at least once in every three years to determinewhether such anAuditCommitteeandmembershavecarriedouttheirdutiesinaccordancewiththeirtermsofreference.

(g) Attendance of the Audit Committee Meetings

ThedetailsofattendanceofeachAuditCommitteememberintheAuditCommitteemeetingsheldduringthefinancialyearended30June2013areasfollows:-

Meeting attended by the Directors/Total Number of Meeting held during the financial year ended Name 30 June 2013 % of Attendance

Mr.LeeKimSeng 5/5 100% DatukHairuddinBinMohamed 5/5 100% Mr.YeohChongKeng 5/5 100%



(h) Summaries of Activities of the Audit Committee

DuringthefinancialyearuptothedateofthisReport,theAuditCommitteecarriedoutthefollowingactivitiesindischargingtheirdutiesandresponsibilities:

1. Control

Evaluatedtheoveralleffectivenessofthesystemofinternalcontrolthroughthereviewoftheresultsofworkperformedbytheinternalandexternalauditorsanddiscussionswiththekeymanagement.

2. Financial Results

ReviewedquarterlyresultsandauditedannualfinancialstatementsoftheGroupandCompanybeforerecommendingtotheBoardfor release to Bursa Securities. The review should focusprimarilyon:

a) major judgmental areas, significant and unusualevents;

b) significantadjustmentsresultingfromaudit;

c) thegoingconcernassumptions;

d) compliance with applicable approved accountingstandardsinMalaysia;and

e) compliancewithListingRequirementsofBursaSecuritiesandotherregulatoryrequirements.

3. External Audit

a) reviewedwiththeexternalauditors,theirauditplanforthefinancialyearended30June2013toensurethattheirscopeofworkadequatelycoverstheactivitiesoftheGroup;

b) reviewedtheresultsandissuesarisingfromtheirauditoftheannualfinancialstatementsandtheirresolutionofsuchissuesashighlightedintheirreporttotheCommittee;and

c) reviewedtheirperformanceandindependencebeforerecommendingtotheBoardtheirreappointmentandremuneration.

4. Internal Audit

a) reviewed with the internal auditors, their audit plan for the financial year ended 30 June 2013ensuringthatprincipalriskareaswereadequatelyidentifiedandcoveredtheplan;

b) reviewedtherecommendationsbyinternalaudit,representationsmadeandcorrectiveactionstakenby themanagement in addressing and resolving issues as well as ensuring that all issues wereadequatelyaddressedonatimelybasis;

c) reviewedthecompetenciesoftheinternalauditorstoexecutetheplan,theauditprogramsusedintheexecutionoftheinternalauditworkandresultsoftheirwork;and

d) reviewedtheadequacyofthetermsofreferenceofinternalaudit.



TheBoardofDirectors (“theBoard”) ofYoongOnnCorporationBerhad (“theCompany”or “YOCB”) is fullycommittedtopromoteandachievethehigheststandardofcorporategovernanceandtoensurethattheprinciplesandbestpracticesincorporategovernanceasdetailedintheMalaysianCodeonCorporateGovernance(“theCode”)arepractisedandadoptedinYOCBanditssubsidiaries(“theGroup”).

TheBoardcontinuouslyevaluatestheGroup’scorporategovernancepracticesandprocedureswithaviewtoadoptandimplementtheprinciplesandbestpracticesasrecommendedbytheCode,whereverapplicable,asafundamentalpartofdischargingitsdutiesandresponsibilitiestoprotectandenhanceshareholders’value.TheBoardbelievesthatgoodcorporategovernanceresultsincreationoflongtermvalueandbenefitsforallshareholders.

SECTION 1 : THE BOARD OF DIRECTORS

TheBoard takes full responsibilities for theperformanceof theGroupandguides theGroup towards achievingits short and long term objectives, setting corporate strategies for growth and new business developmentwhileprovidingadviceanddirectiontothemanagementtoenabletheGrouptoachieveitscorporategoalandobjectives.

(a) Composition of the Board and Board Balance

The Boardmembers are professionals from diverse disciplines, tapping their respective qualifications andexperiencesinbusiness,commercialandfinancialaspects.Together,theybringawiderangeofcompetencies,experienceandexpertisewhicharevitaltowardstheeffectivedischargeoftheBoard’sresponsibilitiesforthesuccessfuldirectionandgrowthoftheGroup.AbriefprofileofeachDirectorsispresentedontheProfileoftheDirectorsinthisAnnualReport.

TheBoard currently consists of six (6)members, comprising of two (2) ExecutiveDirectors and four (4)IndependentNon-ExecutiveDirectors.This is in linewith theMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”),whichrequirethatatleasttwo(2)orone-third(1/3)oftheBoardmembers,whicheveristhehigher,tobeIndependentDirectors.

TheIndependentDirectorsalsohavethenecessaryskillandexperiencetobringanindependentjudgmenttobeartheissuesofstrategy,performance,resourcesincludingkeyappointmentsandstandardofconducts.

The Independent Directors are independent of management and majority shareholders. They provideindependent views and judgment and at the same time, safeguard the interests of parties such asminorityshareholders.NoindividualorgroupofindividualsdominatestheBoard’sdecisionmakingprocessandthenumberofdirectorsfairlyreflectstheinvestmentoftheshareholders.

The roles of the Chairman and theManaging Director are distinguished and separated. The Chairman isresponsible to ensure that the Board functions properly with good corporate governance practices andprocedures,whilsttheManagingDirectorisresponsiblefortheday-to-dayoperationsandbusinessactivitiesoftheGroupinaccordancewiththestandardpracticessetoutintheBoardCharter.Thisistoensureabalanceofpowerandauthority.

TheBoard does not consider it necessary to nominate a Senior IndependentNon-Executive Director to whom concerns may be conveyed. All membersof the Board have demonstrated that they are always available to membersand stakeholders.All issuescanbeopenlydiscussedduringBoardmeetings.TheCompanyisnotmarredwithconflictsandcontroversiesandalsohasnotreceivedanynoticeofmattersofconcernfromstakeholderssinceitslisting.

AllDirectors have given their undertaking to complywith theMainMarketListingRequirementsofBursaSecuritiesandtheIndependentDirectorshaveconfirmedtheirindependenceinwriting.

Corporate GovernanCe statement


SECTION 1 : THE BOARD OF DIRECTORS (cont’d)

(b) Board Responsibilities

Having recognised the importance of an effective and dynamic Board, theBoardmembersareguidedbytheareaofresponsibilitiesasoutlined:-

• reviewingandadoptingstrategicplanfortheGroup;

• overseeing the conduct of theGroup’s businesses to evaluatewhether thebusinessesarebeingproperlymanaged;

• identifying theprincipal risksandkeyperformance indicatorsof theGroup’sbusinessesandensuringthatappropriatesystemsareimplementedand/orstepsaretakentomanagetheserisks;

• developingandimplementinganinvestorsrelationsprogrammeorshareholdercommunicationpolicyfortheGroup;and

• reviewing the adequacy and the integrity of the Group’s internal control systems and managementinformationsystems,includingsystemsforcompliancewithapplicablelaws,regulations,rules,directivesandguidelines.

(c) Re-Election of Directors

InaccordancewiththeCompany’sArticleofAssociations,allDirectorsincludingtheManagingDirectorshallretirefromtheofficeat leastonceeverythree(3)years,butshallbeeligibleforre-election.DirectorswhoareappointedbytheBoardduringthefinancialyeararesubjecttore-electionbyshareholdersattheAnnualGeneralMeetingfollowingtheirappointment.

(d) Directors’ Training

TheGroupacknowledgesthefactthatcontinuouseducationisvitalfortheBoardmemberstogaininsightintothestateofeconomy,technologicaladvancesinthecorebusiness,latestregulatoryupdates,andmanagementstrategies.IncompliancewiththeMainMarketListingRequirementsandtherelevantPracticeNoteissuedbyBursaSecurities, allDirectorshaveattendedand successfully completed theirMandatoryAccreditationProgrammewithinthestipulatedtimeframeasprescribedbyBursaSecurities.

Duringthefinancialyearended30June2013,theDirectorshaveattendedthefollowingtrainings:-

Name Title of Training Date

DatukKamaludinBinYusoff BoardOversightResponsibilities 29May2013 forMerger&Acquisition

Mr.ChewHonFoong BoardOversightResponsibilities 29May2013 forMerger&Acquisition

Mr.ChewHonKeong BoardOversightResponsibilities 29May2013 forMerger&Acquisition

Mr.YeohChongKeng BoardOversightResponsibilities 29May2013 forMerger&Acquisition

Mr.LeeKimSeng BoardOversightResponsibilities 29May2013 forMerger&Acquisition

DatukHairuddinBinMohamed BoardOversightResponsibilities 29May2013 forMerger&Acquisition

Corporate Governance statement (cont’d)



(d) Directors’ Training (cont’d)

TheDirectorsarealsoawareoftheirdutytoundergoappropriatetrainingfromtimetotimetoensurethattheyareequippedtocarryouttheirdutieseffectively.TheBoardismindfulthereforeoftheneedtokeepabreastof changes inboth the regulatoryandbusinessenvironmentsaswell aswithnewdevelopmentswithin theindustryinwhichtheGroupoperates.Whenevertheneedarises,theCompanywillprovidebriefingstonewrecruitstotheBoard,toensuretheyhaveacomprehensiveunderstandingontheoperationsoftheGroupandtheCompany.

(e) Supply of information

TheBoardhasaformalscheduleofmattersfordecision-makingtoensurethatthedirectionandcontroloftheGroupisfirmlyinitshands.

PriortoeachBoardmeeting,afullagendatogetherwithrelevantreportsandcomprehensiveBoardpapersaredistributedtoallDirectorsinatimelymannertoenabletheDirectorstoconsiderthematterstobedeliberatedandwherenecessary,obtainfurtherinformation.

ProceedingsofBoardmeetingsaredulyrecordedandsignedbytheChairmanofthemeeting.

Every Director has full and timely access to all Group information, records, documents and property toenable them to discharge their duties and responsibilities effectively. The Directors, whether collectivelyor individually,may seek independent professional advice in furtherance of their duties at theCompany’sexpenses,ifrequired.

(f) Board Meetings

TheBoardmeetsonaquarterlybasiswithadditionalmeetings tobeheldwhenevernecessary.Therewerefive(5)Boardmeetingsheldduringthefinancialyearended30June2013andthedetailsofattendanceareasfollows:-

Meetings attended by the Directors/Total Number of Meeting held during the Financial Year Ended Name of Director 30 June 2013 % of Attendance

Executive Directors Mr.ChewHonFoong 5/5 100% Mr.ChewHonKeong 4/5 80% Non-Executive Directors DatukKamaludinBinYusoff 5/5 100% DatukHairuddinBinMohamed 5/5 100% Mr.YeohChongKeng 5/5 100% Mr.LeeKimSeng 5/5 100%

During the financial year ended 30 June 2013, five (5) Boardmeetingswereconvenedon30August2012,18October2012,29November2012,27February2013and29May2013.




(g) Board Committees

TheBoardhasestablishedthefollowingCommittees toassists theBoard indischargingitsdutiesandresponsibilitieseffectively:

• AuditCommittee• NominationCommittee• RemunerationCommittee

ThetermsofreferenceofeachBoardCommitteearesetoutinBoardCharterandhavebeenapprovedby theBoard.TheseCommitteeshave the authority to examineparticular issues and reportto theBoardwith their recommendations.However, theultimate responsibility for thefinaldecisiononallmatterslieswiththeBoard.

(h) Audit Committee

ThereportoftheAuditCommitteeissetoutintheAuditCommitteeReportinofthisAnnualReport.

(i) Nomination Committee

Our Nomination Committee was established on 28 September 2009 and the members of the NominationCommitteeconsistofthefollowingmembers:

Name Designation Directorship Mr.YeohChongKeng Chairman IndependentNon-ExecutiveDirector

DatukHairuddinBinMohamed Member IndependentNon-ExecutiveDirector

Mr.LeeKimSeng Member IndependentNon-ExecutiveDirector

ThesummaryofthetermsofreferenceoftheNominationCommitteeareasfollows:

(i) reviewtheBoardstructure,sizeandcomposition;

(ii) nominatecandidatestotheBoardtofillBoardvacancieswhentheyarise;

(iii) recommendDirectorswhoareretiringbyrotationtobeputforwardforre-election;and

(iv) ensurethatallBoardappointeesundergoanappropriateintroductionandtrainingprogramme.

TheBoardannuallyreviewstherequiredmixofskills,experienceandotherqualitiesof theDirectors toensure that theBoard is functioningeffectivelyandefficiently.




(j) Remuneration Committee

OurRemunerationCommitteewasestablishedon28September2009andthemembersoftheRemunerationCommitteeconsistofthefollowingmembers:

Name Designation Directorship Mr.YeohChongKeng Chairman IndependentNon-ExecutiveDirector

DatukKamaludinBinYusoff Member IndependentNon-ExecutiveChairman

Mr.ChewHonFoong Member Managing Director and Group Chief ExecutiveOfficer

Duringthefinancialyearended30June2013,RemunerationCommitteemeetingwereconvenedon30January2013.

ThesummaryofthetermsofreferenceoftheRemunerationCommitteeareasfollows:

(i) recommendtotheBoardtheremunerationoftheDirectors;

(ii) assisttheBoardinassessingtheresponsibilityandcommitmentundertakenbytheBoardmembership;and

(iii) assisttheBoardinensuringtheremunerationoftheDirectorscommensuratewiththeresponsibilityandcommitmentoftheDirectorsconcerned.

SECTION 2 : DIRECTORS’ REMUNERATION

(a) Remuneration Procedure

The remuneration of directors is formulated to be competitive and realistic, emphasis being placed onperformance and calibre, with aims to attract,motivate and retainDirectors with the relevant experience,expertiseandqualityneededtoassistinmanagingtheGroupeffectively.

For Executive Directors, the remuneration packages link rewards tocorporate and individual performance whilst for the Non-ExecutiveDirectors,thelevelofremunerationislinkedtotheirexperienceandlevelofresponsibilitiesundertaken.

The level of remuneration for the Executive Directors isdetermined by the Remuneration Committee after giving dueconsideration to the compensation levels for comparablepositions among other similar Malaysian public listedcompanies.Thedeterminationof theremunerationpackageofNon-Executive Directors, including Non-Executive Chairmanshould be amatter for the Board as a whole. The individualsconcernedshouldabstainfromdiscussingtheirownremuneration.



SECTION 2 : DIRECTORS’ REMUNERATION (cont’d)

(b) Remuneration Package

ThedetailsoftheremunerationoftheDirectorsoftheCompanyareasfollows:-

Executive Non-Executive Directors Directors

(RM’000) (RM’000) Emoluments 1,265 18 Directors’fees - 156

ThenumberofDirectorswhoseremunerationfallsintothefollowingbandsisasfollows:- Range of Remuneration Executive Directors Non-Executive Directors BelowRM50,000 - 3 RM50,001–RM100,000 - 1 RM550,001–RM600,000 1 - RM650,001–RM700,000 1 -

SECTION 3 : SHAREHOLDERS

(a) Dialogue between Company and Investors

TheBoardmaintainsaneffectivecommunicationspolicythatenablesboththeBoardandthemanagementtocommunicateeffectivelywithitsshareholders,stakeholdersandthepublic.Thepolicyeffectivelyinterpretstheoperationsof theGroup to the shareholders and accommodates feedback from shareholders,which arefactoredintotheGroup’sbusinessdecision.

The Board communicates information on the operations, activities and performance of the Group to theshareholders,stakeholdersandthepublicthroughthefollowing:-

i. the Annual Report, which contains the financial andoperational review of the Group’s business, corporateinformation,financial statementsand informationonAuditCommitteeandBoardofDirectors;

ii. variousannouncementsmadetotheBursaSecurities,whichincludeannouncementsonquarterlyresults;

iii. theCompanywebsiteathttp://www.yoongonn.com;

iv. meetingswithresearchanalystsandfundmanagers togivethemabetterunderstandingofthebusinessconductedbytheGroupinparticular,andoftheindustryinwhichtheGroup’sbusinessoperates,ingeneral;and

v. participation in surveys and research conducted byprofessionalorganisationsasandwhensuchrequestsarise.



SECTION 3 : SHAREHOLDERS (cont’d)

(b) The Annual General Meeting

TheAnnualGeneralMeeting servesasan importantmeans for shareholderscommunication.Noticeof theAnnualGeneralMeetingandAnnualReportsaresenttoshareholderstwentyonedayspriortothemeeting.

AteachAnnualGeneralMeeting,theBoardpresentstheprogressandperformanceoftheGroup’sbusinessandencouragesattendanceandparticipationofshareholdersduringquestionsandanswerssessions.TheChairmanandtheBoardwillrespondtoallquestionsraisedbytheshareholdersduringtheAnnualGeneralMeeting.

SECTION 4 : ACCOUNTABILITY AND AUDIT

(a) Financial Reporting

TheBoardaimstoprovideandpresentaclear,balancedandcomprehensiveassessmentoftheGroup’sfinancialperformanceandprospectsthroughthequarterlyannouncementofresultstotheBursaSecuritiesaswellastheChairman’sStatement,reviewofoperationsandannualfinancialstatementsintheAnnualReport.TheAuditCommitteeassiststheBoardinensuringaccuracyandadequacyofinformationbyoverseeingandreviewingthefinancialstatementsandquarterlyannouncementspriortothesubmissiontoBursaSecurities.

(b) Statement on Directors’ Responsibility in relation to the Audited Financial Statements

TheDirectorsareresponsibletoensurethattheannualfinancialstatementsaredrawnupinaccordancewiththe applicable approved accounting standards inMalaysia and Companies, Act 1965. A Statement by theDirectorsoftheirresponsibilitiesinpreparingthefinancialstatementsissetoutseparatelyonpage37ofthisAnnualReport.

(c) Internal Control and Risk Management

TheBoardacknowledgestheirresponsibilitiesfortheinternalcontrolsystemoftheGroup,coveringnotonlyfinancialcontrolsbutalsocontrolsrelatingtooperations,complianceandriskmanagement.InformationoftheGroup’sinternalcontrolandriskmanagementispresentedintheStatementonRiskManagementandInternalControlofthisAnnualReport.

(d) Relationship with the Auditors

TheBoardhasestablishedaformalandtransparentprofessionalrelationshipwith theGroup’sAuditors,bothinternalandexternal.Whenevertheneedarises,theAuditorswouldhighlighttotheAuditCommitteeandtheBoardfromtimetotimeonmattersthatrequiretheBoard’sattention.TheroleoftheAuditCommitteeinrelationtotheauditors,bothinternalandexternalissetoutintheAuditCommitteeReportofthisAnnualReport.

ThiscorporategovernancestatementismadeinaccordancewiththeresolutionoftheBoarddated10October2013.



statement on rIsk manaGement and InternaL ControL

INTRODUCTION

The Malaysian Code on Corporate Governance requires listed companies to maintain a sound system of riskmanagementandinternalcontroltosafeguardtheshareholders’investmentsandtheGroup’sassets.TheBoardofYoongOnnCorporationBerhadiscommittedtomaintainasoundsystemofriskmanagementandinternalcontrolintheGroup.SetoutbelowistheBoardofDirectors’“StatementonRiskManagementandInternalControl”whichhas been prepared in accordancewith theGuidance forDirectors ofPublicListedCompanies on theStatementonRiskManagementandInternalControlwhichoutlinestheframeworksandprocessestheBoardis toadoptinmaintainingtheadequacyandintegrityofriskmanagementandthesystemofinternalcontroloftheGroup.

RESPONSIBILITY OF THE BOARD

TheBoardofDirectors(“Board”)isresponsiblefortheadequacyandeffectivenessoftheYoongOnnCorporationBerhad(“theGroup”)riskmanagementandinternalcontrolsystem.TheBoardensuresthatthesystemmanagestheGroup’skeyareasofriskwithinanacceptableriskprofiletoincreasethelikelihoodthattheGroup’spoliciesandbusinessobjectiveswillbeachieved.TheBoardcontinuallyreviewsthesystemtoensureitprovidesareasonablebutnotabsoluteassuranceagainstmaterialmisstatementofmanagementandfinancialinformationandrecordsoragainstfinanciallossesorfraud.

TheBoardhasestablishedanongoingprocessforidentifying,evaluatingandmanagingthesignificantrisksfacedby theGroupand thisprocess includesenhancing theriskmanagementand internalcontrolsystemasandwhenthere are changes to the business environment or regulatory guidelines. Management assists the Board in theimplementationoftheBoard’spoliciesandproceduresonriskmanagementandinternalcontrolbyidentifyingandassessingtherisksfaced,andinthedesign,operationandmonitoringofsuitableinternalcontrolstomitigateandcontroltheserisks.

TheBoardisoftheviewthattheriskmanagementandinternalcontrolsysteminplacefortheyearunderreviewanduptothedateofissuanceofthefinancialstatementsisadequateandeffectivetosafeguardtheshareholders’investment,theinterestsofcustomers,regulatorsandemployees,andtheGroup’sassets.


RISK MANAGEMENT FRAMEWORK

TheBoardisawarethatasoundsystemofinternalcontrolshouldbeembeddedintheoperationsoftheGroupandformpartofitsculture.ThissystemshouldbecapableofrespondingquicklytoevolvingriskstothebusinessarisingfromfactorswithintheGroupandchangesinthebusinessenvironment.Itshouldincludeproceduresforreportingimmediatelytoappropriatelevelsofmanagementanysignificantcontrolfailingsorweaknessesthatareidentifiedtogetherwithdetailsofcorrectiveactionbeingtaken.TheBoardhasestablishedaRiskManagementFrameworkwhichconsistsofastructuredapproachcoveringtheidentificationofrisks,assessmentofrisksandreviewingandimplementingstrategiestomitigatethoserisks.TheBoardhasestablishedanExecutiveCommitteecomprisingofExecutiveDirectorsandSeniorManagementtooverseetheriskmanagementinitiativesoftheGroup.TheBoardandtheAuditCommitteeregularlyreviewsthisprocesstoensuretheeffectivenessofitsriskmanagement.

INTERNAL CONTROL AND INTERNAL AUDIT FUNCTION

The Board has outsourced the internal audit function of the Group to an independent professional firm, IBDC(Malaysia)SdnBhdfortheyearended30June2013.TheauditplanningmemorandumpresentedannuallybytheInternalAuditorsisadoptedbytheAuditCommitteetoreviewtheeffectivenessoftheGroup’ssystemofinternalcontrol.

TheGroup’ssystemofinternalcontrolcomprisesbutnotlimitedtothefollowingactivities:-● TheAuditCommitteecomprisessolelyofIndependentNon-ExecutiveDirectorswithfullaccesstoboththe

internalandexternalauditors.AuditCommitteemeetingsareheldseparatelyfromBoardmeetings;● Periodicinternalauditsareconductedbytheinternalauditorstomonitorcompliancetoestablishedprocedures

andtoreviewinternalcontrolmeasures.Theinternalauditreportswouldhighlightanysignificantrisks,noncompliancesandareasforimprovements;

● Each core business process function is audited on a rotational basis and theAuditCommittee reviews theinternalauditissuesidentified,andtogetherwiththeManagementrecommendsimprovementstotheBoard;

● Followup reviews are conductedonprevious audit issues highlighted to ensure that the recommendationshighlightedhadbeenaddressedbyManagement.

REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS

TheexternalauditorshavereviewedthisStatementonRiskManagementandInternalControlpursuanttothescopesetoutinRecommendedPracticeGuide(“RPG”)5issuedbytheMalaysianInstituteofAccountant(“MIA”)forinclusionintheannualreportfortheyearended30June2013andreportedtotheBoardthatnothinghascometotheirattentionthatcausesthemtobelievethatthestatementisinconsistentwiththeirunderstandingoftheprocessadopted by theBoard in reviewing the adequacy and effectiveness of the riskmanagement and internal controlsystem.

CONCLUSION

During thefinancialyearunder review, theBoard issatisfied thatnomaterial losses,deficienciesorerrorswerearising fromany inadequacyor failureof theGroup’s internal control system thatwill requiredisclosure in theAnnualReport. TheChief ExecutiveOfficer andChief FinancialOfficer have provided assurance to theBoardthattheGroup’sriskmanagementandinternalcontrolsystem,inallmaterialaspectsisoperatingadequatelyandeffectively.

TheBoardwillcontinuetotakemeasurestostrengthenthesystemofinternalcontrolmaintainedbytheGroupandensureshareholders’investmentandtheGroup’sassetsareconsistentlysafeguarded.

ThisstatementonriskmanagementandinternalcontrolismadeinaccordancewiththeresolutionoftheBoardofDirectors’meetingheldon10October2013.

statement on risk management and Internal Control (cont’d)


TheDirectorsareresponsibleforthepreparationoffinancialstatementswhichgiveatrueandfairviewofthestateofaffairsofYoongOnnCorporationBerhad(“YOCB”)anditssubsidiarycompanies(“theGroup”)asattheendofthefinancialyear,andoftheresultsandcashflowsforthefinancialyearended.

Therefore,inpreparingthefinancialstatementsofYOCBfortheyearended30June2013,theDirectorshave:

∙ adoptedappropriateaccountingpoliciesandappliedthemonaconsistentbasis;

∙ madejudgmentsandestimatesthatareprudentandreasonable;

∙ ensuredapplicableapprovedaccountingstandardshavebeenfollowedandanymaterialdepartureshavebeendisclosedandexplainedinthefinancialstatements;and

∙ ensuredthefinancialstatementshavebeenpreparedonagoingconcernbasis.

TheDirectors are responsible for ensuring that theGroup and the Company keep proper accounting and otherrecordswhichdisclosewithreasonableaccuracythefinancialpositionoftheGroupandtheCompany,andensuringthatthefinancialstatementscomplywiththeprovisionsoftheCompaniesAct,1965.TheDirectorshaveoverallresponsibilitiesfortakingsuchstepstosafeguardtheassetsoftheGroup,andtopreventanddetectfraudandotherirregularities.

ThisabovestatementismadeinaccordancewiththeresolutionpassedattheBoardofDirectors’meetingheldon10October2013.

statement on dIreCtors’ responsIbILIty in relation to the audited financial statements


39 Directors’Report

43 StatementbyDirectors

43 StatutoryDeclaration

44 IndependentAuditors’Report

46 StatementsofFinancialPosition

48 StatementsofProfitorLossandOtherComprehensiveIncome

49 StatementsofChangesinEquity

51 StatementsofCashFlows

53 NotestotheFinancialStatements


DIRECTORS’ REPORT

ThedirectorsherebysubmittheirreportandtheauditedfinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended30June2013.

PRINCIPAL ACTIVITIES

The Company is principally engaged in the business of investment holding and the provision of managementservices.TheprincipalactivitiesofthesubsidiariesaresetoutinNote6tothefinancialstatements.Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringthefinancialyear.

RESULTS

The Group The Company RM’000 RM’000

ProfitaftertaxationattributabletoownersoftheCompany 20,453 4,319

DIVIDENDS

Sincetheendofthepreviousfinancialyear,theCompanypaidafinalsingletierdividendof1.5senperordinaryshareamountingtoRM2,400,000inrespectofthefinancialyearended30June2012.

TheCompanydeclaredaninterimsingletierdividendof2.0senperordinaryshareamountingtoRM3,200,000inrespectofthefinancialyearended30June2013.

AttheforthcomingAnnualGeneralMeeting,afinalsingletierdividendof2.0senperordinaryshareamountingtoRM3,200,000inrespectofthecurrentfinancialyearwillbeproposedforshareholders’approval.Thefinancialstatementsfor thecurrentfinancialyeardonotreflect thisproposeddividend.Suchdividend, ifapprovedbytheshareholders,willbeaccountedforinthefinancialyearending30June2014.

RESERVES AND PROVISIONS

All material transfers to or from reserves or provisions during the financial year are disclosed in the financialstatements.

ISSUES OF SHARES AND DEBENTURESDuringthefinancialyear,

(a) therewerenochangesintheauthorisedandissuedandpaid-upsharecapitaloftheCompany;and

(b) therewerenoissuesofdebenturesbytheCompany.

OPTIONS GRANTED OVER UNISSUED SHARES

Duringthefinancialyear,nooptionsweregrantedbytheCompanytoanypersontotakeupanyunissuedsharesintheCompany.


BAD AND DOUBTFUL DEBTS

BeforethefinancialstatementsoftheGroupandoftheCompanyweremadeout,thedirectorstookreasonablestepstoascertainthatactionhadbeentakeninrelationtothewritingoffofbaddebtsandthemakingofallowanceforimpairmentlossesonreceivables,andsatisfiedthemselvesthatallknownbaddebtshadbeenwrittenoffandthatadequateallowancehadbeenmadeforimpairmentlossesonreceivables.

Atthedateofthisreport,thedirectorsarenotawareofanycircumstancesthatwouldrequirethefurtherwritingoffofbaddebts,ortheadditionalallowanceforimpairmentlossesonreceivablesinthefinancialstatementsoftheGroupandoftheCompany.

CURRENT ASSETS

Before thefinancial statements of theGroup andof theCompanyweremadeout, the directors took reasonablestepstoascertainthatanycurrentassetsotherthandebts,whichwereunlikelytoberealisedintheordinarycourseofbusiness,includingtheirvalueasshownintheaccountingrecordsoftheGroupandoftheCompany,havebeenwrittendowntoanamountwhichtheymightbeexpectedsotorealise.

Atthedateofthisreport,thedirectorsarenotawareofanycircumstanceswhichwouldrenderthevaluesattributedtothecurrentassetsinthefinancialstatementsoftheGroupandoftheCompanymisleading.

VALUATION METHODS

At the date of this report, the directors are not aware of any circumstances which have arisen which renderadherencetotheexistingmethodsofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate.

CONTINGENT AND OTHER LIABILITIES

ThecontingentliabilitiesaredisclosedinNote31tothefinancialstatements.Atthedateofthisreport,theredoesnotexist:

(i) anychargeontheassetsoftheGroupandoftheCompanythathasarisensincetheendofthefinancialyearwhichsecurestheliabilitiesofanyotherperson;or

(ii) anycontingentliabilityoftheGroupandoftheCompanywhichhasarisensincetheendofthefinancialyear.

NocontingentorotherliabilityoftheGroupandoftheCompanyhasbecomeenforceableorislikelytobecomeenforceablewithin the period of twelvemonths after the end of the financial yearwhich, in the opinion of thedirectors,willormaysubstantiallyaffect theabilityof theGroupandof theCompany tomeet theirobligationswhentheyfalldue.

CHANGE OF CIRCUMSTANCES

Atthedateofthisreport,thedirectorsarenotawareofanycircumstancesnototherwisedealtwithinthisreportorthefinancialstatementsoftheGroupandoftheCompanywhichwouldrenderanyamountstatedinthefinancialstatementsmisleading.

Directors’ Report (cont’d)


ITEMS OF AN UNUSUAL NATURE

TheresultsoftheoperationsoftheGroupandoftheCompanyduringthefinancialyearwerenot,intheopinionofthedirectors,substantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature.

Therehasnotarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportanyitem,transactionoreventofamaterialandunusualnaturelikely,intheopinionofthedirectors,toaffectsubstantiallytheresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyear.

HOLDING COMPANY

TheholdingcompanyisCasatexCosmoSdn.Bhd.,acompanyincorporatedinMalaysia.

DIRECTORS

Thedirectorswhoservedsincethedateofthelastreportareasfollows:-

ChewHonFoongChewHonKeongDatukKamaludinBinYusoffDatukHairuddinBinMohamedYeohChongKengLeeKimSeng

DIRECTORS’ INTERESTS

In accordancewith the register of directors’ shareholdings, the interests of directors in office at the end of thefinancialyearinsharesintheCompanyanditsrelatedcorporationsduringthefinancialyearareasfollows:

Number Of Ordinary Shares Of RM0.50 Each At At 1.7.2012 Bought Sold 30.6.2013

Direct Interests DatukKamaludinBinYusoff 183,333 20,000 - 203,333YeohChongKeng 144,000 - - 144,000LeeKimSeng 159,999 - - 159,999

Indirect InterestsChewHonFoong 84,000,231* - - 84,000,231*ChewHonKeong 84,000,231* - - 84,000,231*

*- By virtue of their shareholdings in the holding company, Chew Hon Foong and Chew Hon Keong are deemed to have interests in shares in the Company and its related corporations to the extent of the holding company’s interests, in accordance with Section 6A of the Companies Act, 1965.

Theotherdirectorholdingofficeat theendof thefinancialyearhadno interest inshares in theCompanyor itsrelatedcorporationsduringthefinancialyear.



DIRECTORS’ BENEFITS

Sincetheendofthepreviousfinancialyear,nodirectorhasreceivedorbecomeentitledtoreceiveanybenefit(otherthanabenefitincludedintheaggregateamountofemolumentsreceivedordueandreceivablebydirectorsasshowninthefinancialstatements,orthefixedsalaryofafull-timeemployeeoftheCompany)byreasonofacontractmadebytheCompanyorarelatedcorporationwiththedirectororwithafirmofwhichthedirectorisamember,orwithacompanyinwhichthedirectorhasasubstantialfinancialinterestexceptforanybenefitswhichmaybedeemedtoarisefromtransactionsenteredintointheordinarycourseofbusinesswithcompaniesinwhichcertaindirectorshavesubstantialfinancialinterestsasdisclosedinNote29tothefinancialstatements.

NeitherduringnorattheendofthefinancialyearwastheGrouportheCompanyapartytoanyarrangementswhoseobject is toenable thedirectors toacquirebenefitsbymeansof theacquisitionofshares inordebenturesof theCompanyoranyotherbodycorporate.

AUDITORS

Theauditors,Messrs.CroweHorwath,haveexpressedtheirwillingnesstocontinueinoffice.

SIGNED IN ACCORDANCE WITH A RESOLUTION OF THE DIRECTORS

DATED10OCTOBER2013

Chew Hon Foong

Chew Hon Keong



We,ChewHonFoongandChewHonKeong,beingtwoofthedirectorsofYoongOnnCorporationBerhad,statethat,intheopinionofthedirectors,thefinancialstatementssetoutonpages46to94aredrawnupinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct1965inMalaysiasoastogiveatrueandfairviewofthestateofaffairsoftheGroupandoftheCompanyat30June2013andoftheirresultsandcashflowsforthefinancialyearendedonthatdate.

ThesupplementaryinformationsetoutinNote36,whichisnotpartofthefinancialstatements,ispreparedinallmaterialrespects,inaccordancewithGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosurePursuanttoBursaMalaysiaSecuritiesBerhadListingRequirements,asissuedbytheMalaysianInstituteofAccountantsandthedirectiveofBursaMalaysiaSecuritiesBerhad.

SIGNED IN ACCORDANCE WITH A RESOLUTION OF THE DIRECTORS

DATED10OCTOBER2013

Chew Hon Foong Chew Hon Keong

STATUTORY DECLARATION

I,ChewHonFoong,I/C.No.590205-10-5731,beingthedirectorprimarilyresponsibleforthefinancialmanagementofYoongOnnCorporationBerhad,dosolemnlyandsincerelydeclarethatthefinancialstatementssetoutonpages46to94are,tothebestofmyknowledgeandbelief,correct,andImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

SubscribedandsolemnlydeclaredbyChewHonFoong,I/C.No.590205-10-5731,atKualaLumpurintheFederalTerritoryonthis10October2013.

Beforeme Chew Hon FoongYap Lee ChinNo. W-591CommissionerforOaths

STATEMENT BY DIRECTORS


Report on the Financial Statements

Wehave audited thefinancial statements ofYoongOnnCorporationBerhad,which comprise the statements offinancialpositionasat30June2013oftheGroupandoftheCompany,thestatementsofprofitorlossandothercomprehensive income, statements of changes in equity and statements of cash flows of the Group and of theCompanyforthefinancialyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation,assetoutonpages46to94.

Directors’ Responsibility for the Financial Statements

ThedirectorsoftheCompanyareresponsibleforthepreparationoffinancialstatementssoastogiveatrueandfairviewinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct1965inMalaysia.Thedirectorsarealsoresponsibleforsuchinternalcontrolasthedirectorsdetermineisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditors’ Responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements. The procedures selected depend on our judgement, including the assessment of risks of materialmisstatement of the financial statements, whether due to fraud or error. In making those risk assessments, weconsiderinternalcontrolrelevanttotheentity’spreparationoffinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

Inouropinion,thefinancialstatementsgiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasof30June2013andoftheirfinancialperformanceandcashflowsforthefinancialyearthenendedinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct1965inMalaysia.

INDEPENDENT AUDITORS’ REPORTTo the Members of Yoong Onn Corporation Berhad (Incorporated in Malaysia) Company No: 814138 - K


Report on Other Legal and Regulatory Requirements

InaccordancewiththerequirementsoftheCompaniesAct1965inMalaysia,wealsoreportthefollowing:-

(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by theCompanyanditssubsidiarieshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

(b) WearesatisfiedthatthefinancialstatementsofthesubsidiariesthathavebeenconsolidatedwiththeCompany’sfinancialstatementsareinformandcontentappropriateandproperforthepurposesofthepreparationofthefinancialstatementsoftheGroupandwehavereceivedsatisfactoryinformationandexplanationsrequiredbyusforthosepurposes.

(c) OurauditreportsonthefinancialstatementsofthesubsidiariesdidnotcontainanyqualificationoranyadversecommentmadeunderSection174(3)oftheAct.

ThesupplementaryinformationsetoutinNote36onpage95isdisclosedtomeettherequirementofBursaMalaysiaSecuritiesBerhadand isnotpartof thefinancialstatements.Thedirectorsareresponsiblefor thepreparationofthesupplementaryinformationinaccordancewithGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosurePursuanttoBursaMalaysiaSecuritiesBerhadListingRequirements,asissuedbytheMalaysianInstituteofAccountants(“MIAGuidance”)andthedirectiveofBursaMalaysiaSecuritiesBerhad.Inouropinion,thesupplementaryinformationisprepared,inallmaterialrespects,inaccordancewiththeMIAGuidanceandthedirectiveofBursaMalaysiaSecuritiesBerhad.

Other Matters

(1) As stated in the Note 4.1 to the financial statements, YoongOnn Corporation Berhad adoptedMalaysianFinancialReportingStandardson1 July2012with a transitiondateof 1 July2011.These standardswereapplied retrospectivelybydirectors to the comparative information in thesefinancial statements, includingthestatementsoffinancialpositionasat30June2012and1July2011,and thestatementofprofitor lossandothercomprehensiveincome,statementofchangesinequityandstatementofcashflowsforthefinancialyearended30June2012andrelateddisclosures.Wewerenotengagedtoreportontherestatedcomparativeinformationanditisunaudited.OurresponsibilitiesaspartofourauditofthefinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended30June2013have,inthesecircumstances,includedobtainingsufficientappropriateauditevidencethattheopeningbalancesasat1July2012donotcontainmisstatementsthatmateriallyaffectthefinancialpositionasof30June2013andfinancialperformanceandcashflowsforthefinancialyearthenended.

(2) ThisreportismadesolelytothemembersoftheCompany,asabody,inaccordancewithSection174oftheCompaniesAct 1965 inMalaysia and for no other purpose.Wedo not assume responsibility to any otherpersonforthecontentofthisreport.

Crowe Horwath James Chan Kuan CheeFirmNo:AF1018 ApprovalNo:2271/10/13(J)CharteredAccountants CharteredAccountant10October2013

KualaLumpur

Independent Auditors’ Report (cont’d)To the Members of Yoong Onn Corporation Berhad (Incorporated in Malaysia) Company No: 814138 - K


STATEMENTS OF FINANCIAL POSITIONAt 30 June 2013

The

Gro

up

The

Com

pany

30.6

.201

3 30

.6.2

012

1.7.

2011

30

.6.2

013

30.6

.201

2 1.

7.20

11

Not

e R

M’0

00

RM

’000

R

M’0

00

RM

’000

R

M’0

00

RM

’000

ASS

ETS

NON-CURREN

TASS

ETS

Investmentsinsubsidiaries

6-

--

57,565

54,915

54,915

Property,plantandequipment

738,884

39,520

32,712

36

6Goodw

ill

8461

461

637

--

-

39,345

39,981

33,349

57,568

54,921

54,921

CURREN

TASS

ETS

Inventories

957,223

53,334

39,890

--

-Tradereceivables

10

34,649

28,527

27,060

--

-Otherreceivables,depositsandprepaym

ents

11

6,259

4,833

3,451

48

30

22Taxrefundable

-197

10

--

10Amountowingbysubsidiaries

12

--

-4,018

14,597

9,862

Short-terminvestment

13

10,000

7,000

6,000

10,000

7,000

6,000

Depositswithfinancialinstitutions

14

27,234

16,950

14,490

15,430

8,600

9,400

Cashandbankbalances

4,126

5,956

7,521

91

150

1,138

139,491

116,797

98,422

29,587

30,377

26,432

TOTA

LASS

ETS

178,836

156,778

131,771

87,155

85,298

81,353

The

anne

xed

note

s fo

rm a

n in

tegr

al p

art o

f the

se fi

nanc

ial s

tate

men

ts.


The

Gro

up

The

Com

pany

30.6

.201

3 30

.6.2

012

1.7.

2011

30

.6.2

013

30.6

.201

2 1.

7.20

11

Not

e R

M’0

00

RM

’000

R

M’0

00

RM

’000

R

M’0

00

RM

’000

EQUITYANDLIABILITIES

EQ

UITY

Sharecapital

15

80,000

80,000

60,000

80,000

80,000

60,000

Shareprem

ium

16

--

8,685

--

8,685

Mergerd

eficit

17

(44,365)

(44,365)

(44,365)

--

-

Retainedprofits

18

103,704

88,851

86,089

3,851

5,132

12,455

TOTA

LEQ

UITY

139,339

124,486

110,409

83,851

85,132

81,140

NON-CURREN

TLIABILITIES

Deferredtaxliabilities

19

2,062

1,874

1,898

--

-Provision

169

145

--

--

2,231

2,019

1,898

--

-

CURREN

TLIABILITIES

Tradepayables

20

2,734

1,857

3,220

--

-Otherpayablesandaccruals

6,502

7,227

4,781

81

152

213

Dividendpayable

3,200

--

3,200

--

Provisionfortaxation

706

376

764

23

14

-

Short-termborrowings

21

24,124

20,813

10,699

--

-

37,266

30,273

19,464

3,304

166

213

TOTA

LLIABILITIES

39,497

32,292

21,362

3,304

166

213

TOTA

LEQ

UITYANDLIABILITIES

178,836

156,778

131,771

87,155

85,298

81,353

Statements of Financial PositionAt 30 June 2013 (cont’d)

The

anne

xed

note

s fo

rm a

n in

tegr

al p

art o

f the

se fi

nanc

ial s

tate

men

ts.


STATEMENTS OF PROFIT OR LOSS ANDOTHER COMPREHENSIVE INCOME

For The Financial Year Ended 30 June 2013

The Group The Company 2013 2012 2013 2012 Note RM’000 RM’000 RM’000 RM’000

REVENUE 22 178,607 153,913 4,638 9,443 COSTOFSALES (103,311) (92,393) - -

GROSSPROFIT 75,296 61,520 4,638 9,443 OTHERINCOME 722 1,367 839 813

76,018 62,887 5,477 10,256 SELLINGANDDISTRIBUTIONEXPENSES (11,637) (9,499) (1) (9) ADMINISTRATIVEAND OPERATINGEXPENSES (35,848) (29,066) (695) (915)

FINANCECOSTS (853) (840) - -

PROFITBEFORETAXATION 23 27,680 23,482 4,781 9,332 INCOMETAXEXPENSE 24 (7,227) (6,205) (462) (2,140)

PROFITAFTERTAXATION 20,453 17,277 4,319 7,192

OTHERCOMPREHENSIVEINCOME,NETOFTAX - - - -

TOTALCOMPREHENSIVEINCOMEFORTHEFINANCIALYEAR 20,453 17,277 4,319 7,192

TOTALCOMPREHENSIVEINCOMEATTRIBUTABLETO:-OwnersoftheCompany 20,453 17,277 4,319 7,192

PROFITAFTERTAXATION ATTRIBUTABLETO:- OwnersoftheCompany 20,453 17,277 4,319 7,192

EARNINGSPERSHARE(SEN) 25-Basic 13 11 -Diluted N/A N/A

N/A - Not applicable

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


STATEMENTS OF CHANGES IN EQUITYFor The Financial Year Ended 30 June 2013

Attr

ibut

able

To

Ow

ners

Of T

he C

ompa

ny

Non

-Dis

trib

utab

le

D

istr

ibut

able

Sh

are

Shar

e M

erge

r R

etai

ned

Tot

al

Cap

ital

Prem

ium

D

efici

t Pr

ofits

E

quity

Not

e R

M’0

00

RM

’000

R

M’0

00

RM

’000

R

M’0

00

THEGROUP

Balanceat1.7.2011

60,000

8,685

(44,365)

86,089

110,409

Profitaftertaxation/To

talcom

prehensiveincomeforthefinancialyear

-

--

17,277

17,277

Contributionsbyanddistrib

utionstoownersoftheCom

pany:

-B

onusissue

20,000

(8,685)

-(11,315)

--D

ividends

26

-

--

(3,200)

(3,200)

Balanceat30.6.2012/1.7.2012

80,000

-(44,365)

88,851

124,486

Profitaftertaxation/To

talcom

prehensiveincomeforthefinancialyear

-

--

20,453

20,453

DistributionstoownersoftheCom

pany:

-Dividends

26

--

-(5,600)

(5,600)

Balanceat30.6.2013

80,000

-(44,365)

103,704

139,339

The

anne

xed

note

s fo

rm a

n in

tegr

al p

art o

f the

se fi

nanc

ial s

tate

men

ts.


Statements Of Changes In EquityFor The Financial Year Ended 30 June 2013 (cont’d)

Non-Distributable Distributable Share Share Retained Total Capital Premium Profits Equity Note RM’000 RM’000 RM’000 RM’000

THECOMPANY At1.7.2011 60,000 8,685 12,455 81,140 Profitaftertaxation/Totalcomprehensive - - 7,192 7,192incomeforthefinancialyear

Contributionsbyanddistributions toownersoftheCompany: -Bonus 20,000 (8,685) (11,315) --Dividends 26 - - (3,200) (3,200) At30.6.2012/1.7.2012 80,000 - 5,132 85,132

Profitaftertaxation/Totalcomprehensiveincomeforthefinancialyear - - 4,319 4,319

DistributionstoownersoftheCompany: -Dividends 26 - - (5,600) (5,600)

Balanceat30.6.2013 80,000 - 3,851 83,851



STATEMENTS OF CASH FLOWSFor The Financial Year Ended 30 June 2013

The Group The Company 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000

CASHFLOWSFROM/(FOR)OPERATINGACTIVITIES Profitbeforetaxation 27,680 23,482 4,781 9,332

Adjustmentsfor:- Depreciationofproperty,plantandequipment 3,115 2,652 3 3Allowancefor/(Writebackof)slowmovinginventories 237 (51) - -Interestexpense 853 840 - -Plantandequipmentwrittenoff 192 94 - -Impairmentlossongoodwill - 176 - -Gainondisposalofplantandequipment (9) (9) - -Dividendincome - - (4,190) (8,962)Interestincome (627) (521) (839) (813)Allowancefor/(Writebackof)impairmentlossesontradereceivables 33 (68) - -Writeoffoftradereceivables 20 - - -Unrealisedgainonforeignexchange (18) (163) - -

Operatingprofit/(loss)beforeworkingcapitalchanges 31,476 26,432 (245) (440)Increaseininventories (4,126) (13,393) - -Increaseintradeandotherreceivables (7,583) (2,618) (18) (7)Increase/(Decrease)intradeandotherpayables 166 1,218 (70) (61)Decreaseinamountowingbysubsidiaries - - 59 12

CASHFLOWSFROM/(FOR)OPERATINGACTIVITIES 19,933 11,639 (274) (496)Incometaxpaid (6,512) (6,804) (156) (126)Interestpaid (843) (830) - -

NETCASHFROM/(FOR)OPERATINGACTIVITIESCARRIEDFORWARD 12,578 4,005 (430) (622)



Statements Of Cash FlowsFor The Financial Year Ended 30 June 2013 (cont’d)

The Group The Company 2013 2012 2013 2012 Note RM’000 RM’000 RM’000 RM’000

NETCASHFROM/(FOR)OPERATINGACTIVITIESBROUGHTFORWARD 12,578 4,005 (430) (622) CASHFLOWS(FOR)/FROM INVESTINGACTIVITIES Interestreceived 627 521 839 813Dividendreceived - - 3,892 6,971Additionalinvestmentinsubsidiaries - - (2,650) -Purchaseofplantandequipment (2,712) (9,572) - (3)Proceedsfromdisposalofplantandequipment 50 27 - -

NETCASH(FOR)/FROM (2,035) (9,024) 2,081 7,781INVESTINGACTIVITIES

CASHFLOWSFROM/(FOR)FINANCINGACTIVITIES Drawdownofbankers’acceptances 3,311 10,171 - -Repaymentfrom/(Advancesto)subsidiaries - - 10,520 (4,747)Repaymentofhirepurchaseobligation - (8) - -Dividendspaid (2,400) (3,200) (2,400) (3,200)

NETCASHFROM/(FOR)FINANCINGACTIVITIES 911 6,963 8,120 (7,947)

NETINCREASE/(DECREASE)INCASHANDCASHEQUIVALENTS 11,454 1,944 9,771 (788) CASHANDCASHEQUIVALENTSATBEGINNINGOFTHEFINANCIALYEAR 29,906 27,962 15,750 16,538

CASHANDCASHEQUIVALENTSAT ENDOFTHEFINANCIALYEAR 27 41,360 29,906 25,521 15,750



1. GENERAL INFORMATION

The Company is incorporated as a public company limited by shares under the Companies Act 1965 inMalaysia.

TheregisteredofficeislocatedatSuite13A.01(A),Level13A,WismaGoldhill,67,JalanRajaChulan,50200KualaLumpur.

Theprincipal placeofbusiness is located atLotNo.PT16690 - 16692, JalanPermata2,Arab-MalaysianIndustrialPark,71800Nilai,NegeriSembilan.

ThefinancialstatementswereauthorisedforissuebytheBoardofDirectorsinaccordancewitharesolutionofthedirectorsdated10October2013.

2. PRINCIPAL ACTIVITIES

TheCompanyisprincipallyengagedinthebusinessofinvestmentholdingandtheprovisionofmanagementservices.TheprincipalactivitiesofthesubsidiariesaresetoutinNote6tothefinancialstatements.Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringthefinancialyear.

3. HOLDING COMPANY

TheholdingcompanyisCasatexCosmoSdn.Bhd.,acompanyincorporatedinMalaysia.

4. BASIS OF PREPARATION

ThefinancialstatementsoftheGrouparepreparedunderthehistoricalcostconventionandmodifiedtoincludeotherbasesofvaluationasdisclosedinothersectionsundersignificantaccountingpolicies,andincompliancewithMalaysianFinancialReportingStandards(“MFRSs”),InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct1965inMalaysia.

4.1 Theseare theGroup’sfirstsetoffinancialstatementsprepared inaccordancewithMFRSs,whicharealsoinlinewithInternationalFinancialReportingStandardsasissuedbytheInternationalAccountingStandardsBoard.

Inthepreviousfinancialyear, thefinancialstatementsoftheGroupwerepreparedinaccordancewithFinancialReportingStandards(“FRSs”).

ThefinancialimpactontransitiontoMFRSsaredisclosedinNote35.

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 2013

Notes to The Financial StatementsFor the Financial Year Ended 30 June 2013 (cont’d)


4. BASIS OF PREPARATION (CONT’D)

4.2 TheGrouphasnotappliedinadvancethefollowingaccountingstandardsandinterpretations(includingthe consequential amendments, that have been issued by theMalaysianAccounting StandardsBoard(“MASB”),butarenotyeteffectiveforthecurrentfinancialyear:-

MFRSs and IC Interpretations (Including The Consequential Amendments) Effective Date MFRS9FinancialInstruments 1January2015 MFRS10ConsolidatedFinancialStatements 1January2013 MFRS11JointArrangements 1January2013 MFRS12DisclosureofInterestsinOtherEntities 1January2013 MFRS13FairValueMeasurement 1January2013 MFRS119EmployeeBenefits 1January2013 MFRS127SeparateFinancialStatements 1January2013 MFRS128InvestmentsinAssociatesandJointVentures 1January2013 AmendmentstoMFRS7:Disclosures–OffsettingFinancialAssetsand FinancialLiabilities 1January2013 AmendmentstoMFRS9andMFRS7:MandatoryEffectiveDateof MFRS9andTransitionDisclosures 1January2015 AmendmentstoMFRS10,MFRS11andMFRS12:TransitionGuidance 1January2013 AmendmentstoMFRS10,MFRS12andMFRS127:InvestmentEntities 1January2014 AmendmentstoMFRS132:OffsettingFinancialAssetsandFinancialLiabilities 1January2014 ICInterpretation20StrippingCostsintheProductionPhaseofaSurfaceMine 1January2013 AnnualImprovementstoMFRSs2009–2011Cycle 1January2013

Theaboveaccountingstandardsand interpretations (including theconsequentialamendments)arenotrelevanttotheGroup’soperationsexceptasfollows:-

(i) MFRS 9 replaces the parts of MFRS 139 that relate to the classification and measurement offinancial instruments.MFRS9 divides all financial assets into 2 categories – thosemeasured atamortisedcostandthosemeasuredatfairvalue,basedontheentity’sbusinessmodelformanagingitsfinancialassetsandthecontractualcashflowcharacteristicsof the instruments. Forfinancialliabilities,thestandardretainsmostoftheMFRS139requirement.Anentitychoosingtomeasureafinancialliabilityatfairvaluewillpresenttheportionofthechangeinitsfairvalueduetochangesintheentity’sowncreditriskinothercomprehensiveincomeratherthanwithinprofitorloss.ThewillbenofinancialimpactsonthefinancialstatementsoftheGroupuponitsinitialapplicationbutmayimpactitsfuturedisclosures.

(ii) MFRS10replacestheconsolidationguidanceinMFRS127andICInterpretation112.UnderMFRS10,thereisonlyonebasisforconsolidation,whichiscontrol.Extensiveguidancehasbeenprovidedinthestandardtoassist inthedeterminationofcontrol.Therewillbenofinancial impactonthefinancialstatementsoftheGroupuponitsinitialapplicationbutmayimpactitsfuturedisclosures.

(iii) MFRS12isapplicabletoentitiesthathaveinterestsinsubsidiaries,jointarrangements,associatesand/or unconsolidated structured entities.MFRS 12 is a disclosure standard and the disclosurerequirementsinthisstandardaremoreextensivethanthoseinthecurrentstandards.Accordingly,therewillbenofinancialimpactonthefinancialstatementsoftheGroupuponitsinitialapplicationbutmayimpactitsfuturedisclosures.

(iv) MFRS 13 defines fair value, provides guidance on how to determine fair value and requiresdisclosures about fair valuemeasurements. The scope ofMFRS 13 is broad; it applies to bothfinancial instrument itemsandnon-financial instrument items forwhichotherMFRSs requireorpermitfairvaluemeasurementsanddisclosuresaboutfairvaluemeasurements,exceptinspecifiedcircumstances.Ingeneral,thedisclosurerequirementsinMFRS13aremoreextensivethanthoserequired in thecurrent standardsand therefore therewillbenofinancial impacton thefinancialstatementsoftheGroupuponitsinitialapplicationbutmayimpactitsfuturedisclosures.



4. BASIS OF PREPARATION (CONT’D)

4.2 Theaboveaccountingstandardsand interpretations (including theconsequentialamendments)arenotrelevanttotheGroup’soperationsexceptasfollows(Cont’d):-

(v) TheamendmentstoMFRS7(Disclosures–OffsettingFinancialAssetsandFinancialLiabilities)requiredisclosuresthatwillenableusersofanentity’sfinancialstatementstoevaluatetheeffectorpotentialeffectofnettingarrangements,includingrightsofset-offassociatedwiththeentity’srecognisedfinancial assets and recognisedfinancial liabilities, on the entity’s financial position.TherewillbenofinancialimpactonthefinancialstatementsoftheGroupuponitsinitialapplicationbutmayimpactitsfuturedisclosures.

(vi) Theamendments toMFRS10,MFRS12andMFRS127 require investment entities tomeasureparticular subsidiaries at fair value through profit or loss instead of consolidating them. TheCompanyisaninvestmententitywhosebusinesspurposeistoinvestfundssolelyforreturnsfromcapital appreciation, investment income or both. Accordingly, theGroupwill deconsolidate itssubsidiariesupontheinitialapplicationoftheseamendmentsandtofairvaluetheinvestmentsinaccordancewithMFRS139. Therewillbenofinancial impact to thefinancialstatementsof theGroupuponitsinitialapplication.

(vii) TheamendmentstoMFRS101retaintheoptiontopresentprofitorlossandothercomprehensiveincome in either a single statement or in two separate but consecutive statements. In addition,itemspresentedinothercomprehensiveincomesectionaretobegroupedbasedonwhethertheyarepotentiallyre-classifiabletoprofitorlosssubsequentlyi.e.thosethatmightbereclassifiedandthosethatwillnotbereclassified.Incometaxonitemsofothercomprehensiveincomeisrequiredtobeallocatedonthesamebasis.TherewillbenofinancialimpactonthefinancialstatementsoftheGroupuponitsinitialapplicationotherthanthepresentationformatofthestatementofprofitorlossandothercomprehensiveincome.

(viii)The amendments toMFRS 132 provide the application guidance for criteria to offset financialassetsandfinancialliabilities.TherewillbenomaterialimpacttothefinancialstatementsoftheGroupuponitsinitialapplication.

(ix) TheAnnualImprovementstoMFRSs2009–2011CyclecontainamendmentstoMFRS1,MFRS101,MFRS116,MFRS132andMFRS134.TheseamendmentsareexpectedtohavenomaterialimpactonthefinancialstatementsoftheGroupupontheirinitialapplication.

5. SIGNIFICANT ACCOUNTING POLICIES

(a) Critical Accounting Estimates And Judgements

Estimates and judgements are continually evaluated by the directors andmanagement and are basedonhistoricalexperienceandother factors, includingexpectationsof futureevents thatarebelieved tobereasonableunderthecircumstances.TheestimatesandjudgementsthataffecttheapplicationoftheGroup’saccountingpoliciesanddisclosures,andhaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassets,liabilities,incomeandexpensesarediscussedbelow:-

(i) Depreciation of Property, Plant and Equipment

The estimates for the residual values, useful lives and related depreciation charges for theproperty,plantandequipmentarebasedoncommercialandproductionfactorswhichcouldchangesignificantlyasaresultoftechnicalinnovationsandcompetitors’actionsinresponsetothemarketconditions.



5. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(a) Critical Accounting Estimates And Judgements (Cont’d)

(i) Depreciation of Property, Plant and Equipment (Cont’d)

TheGroupanticipatesthattheresidualvaluesofitsproperty,plantandequipmentwillbesignificantandhavebeentakenintoconsiderationforthecomputationofthedepreciableamount.

Changesintheexpectedlevelofusageandtechnologicaldevelopmentcouldimpacttheeconomicusefullivesandtheresidualvaluesoftheseassets,thereforefuturedepreciationchargescouldberevised.

(ii) Income Taxes

Therearecertaintransactionsandcomputationsforwhichtheultimatetaxdeterminationmaybedifferentfromtheinitialestimate.TheGrouprecognisedtaxliabilitiesbasedonitsunderstandingoftheprevailingtaxlawsandestimatesofwhethersuchtaxeswillbedueintheordinarycourseofbusiness.Wherethefinaloutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferencewillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.

(iii) Impairment of Non-financial Assets

Whentherecoverableamountofanassetisdeterminedbasedontheestimateofthevalue-in-useofthecash-generatingunittowhichtheassetisallocated,themanagementisrequiredtomakeanestimateoftheexpectedfuturecashflowsfromthecash-generatingunitandalsotoapplyasuitablediscountrateinordertodeterminethepresentvalueofthosecashflows.

(iv) Impairment of Trade and Other Receivables

Animpairmentlossisrecognisedwhenthereisobjectiveevidencethatafinancialassetisimpaired.Managementspecificallyreviewsitsloansandreceivablesfinancialassetsandanalyseshistoricalbad debts, customer concentrations, customer creditworthiness, current economic trends andchangesinthecustomerpaymenttermswhenmakingajudgmenttoevaluatetheadequacyoftheallowanceforimpairmentlosses.Wherethereisobjectiveevidenceofimpairment,theamountandtimingoffuturecashflowsareestimatedbasedonhistoricallossexperienceforassetswithsimilarcreditriskcharacteristics.Iftheexpectationisdifferentfromtheestimation,suchdifferencewillimpactthecarryingvalueofreceivables.

(v) Allowance for Slow-moving Inventories

Reviewsaremadeperiodicallybymanagementondamaged,obsoleteandslow-movinginventories.Thesereviewsrequirejudgementandestimates.Possiblechangesintheseestimatescouldresultinrevisionstothevaluationofinventories.

(vi) Revaluation of Properties

CertainpropertiesoftheGrouparereportedatvaluationwhichisbasedonvaluationsperformedbyindependentprofessionalvaluers.

Theindependentprofessionalvaluershaveexercisedjudgementindeterminingfactorsusedinthevaluationprocess.Also,judgementhasbeenappliedinestimatingpricesforlessreadilyobservableexternalparameters.Otherfactorssuchasmodelassumptions,marketdislocationsandunexpectedcorrelationscanalsomateriallyaffecttheseestimatesandtheresultingvaluationestimates.




(a) Critical Accounting Estimates And Judgements (Cont’d)

(vii) Impairment of Goodwill

Goodwill is tested for impairment annually and at other timeswhen such indicators exist. Thisrequires management to estimate the expected future cash flows of the cash-generating unit towhichgoodwillisallocatedandtoapplyasuitablediscountrateinordertodeterminethepresentvalue of those cash flows. The future cash flows aremost sensitive to budgeted grossmargins,growthratesestimatedanddiscountrateused.Iftheexpectationisdifferentfromtheestimation,suchdifferencewillimpactthecarryingvalueofgoodwill.

(viii) Fair Value Estimates for Certain Financial Assets and Liabilities

TheGroupcarriescertainfinancialassetsandliabilitiesatfairvalue,whichrequiresextensiveuseofaccountingestimatesandjudgement.Whilesignificantcomponentsoffairvaluemeasurementweredeterminedusingverifiableobjective evidence, the amountof changes in fair valuewoulddifferiftheGroupusesdifferentvaluationmethodologies.Anychangesinfairvalueoftheseassetsandliabilitieswouldaffectprofitand/orequity.

(b) Financial Instruments FinancialinstrumentsarerecognisedinthestatementsoffinancialpositionwhentheGrouphasbecome

apartytothecontractualprovisionsoftheinstruments.

Financial instruments are classified as liabilities or equity in accordance with the substance of thecontractualarrangement.Interest,dividends,gainsandlossesrelatingtoafinancialinstrumentclassifiedas a liability, are reported as an expense or income.Distributions to holders of financial instrumentsclassifiedasequityarechargeddirectlytoequity.

FinancialinstrumentsareoffsetwhentheGrouphasalegallyenforceablerighttooffsetandintendstosettleeitheronanetbasisortorealisetheassetandsettletheliabilitysimultaneously.

Afinancialinstrumentisrecognisedinitially,atitsfairvalueplus,inthecaseofafinancialinstrumentnotatfairvaluethroughprofitorloss,transactioncoststhataredirectlyattributabletotheacquisitionorissueofthefinancialinstrument.

Financial instrumentsrecognisedinthestatementsoffinancialpositionaredisclosedintheindividualpolicystatementassociatedwitheachitem.

(i) Financial Assets

Oninitialrecognition,financialassetsareclassifiedaseitherfinancialassetsatfairvaluethroughprofitorloss,held-to-maturityinvestments,loansandreceivablesfinancialassets,oravailable-for-salefinancialassets,asappropriate.

• Financial Assets at Fair Value Through Profit or Loss

Financialassetsareclassifiedasfinancialassetsatfairvaluethroughprofitorlosswhenthefinancialasset iseitherheldfor tradingor isdesignatedtoeliminateorsignificantlyreduceameasurementorrecognitioninconsistencythatwouldotherwisearise.Derivativesarealsoclassifiedasheldfortradingunlesstheyaredesignatedashedges.




(b) Financial Instruments (Cont’d)

(i) Financial Assets (Cont’d)

• Financial Assets at Fair Value Through Profit or Loss (Cont’d)

Financial assets at fair value through profit or loss are stated at fair value,with any gainsor lossesarisingon remeasurement recognised inprofitor loss.Dividend incomefromthiscategoryoffinancialassetsisrecognisedinprofitorlosswhentheCompany’srighttoreceivepaymentisestablished.

• Held-to-maturity Investments

Held-to-maturity investmentsarenon-derivative financialassetswith fixedordeterminablepayments and fixed maturities that the management has the positive intention and abilitytohold tomaturity.Held-to-maturity investmentsaremeasuredat amortisedcostusing theeffectiveinterestmethodlessanyimpairmentloss,withrevenuerecognisedonaneffectiveyieldbasis.

• Loans and Receivables Financial Assets

Tradereceivablesandotherreceivablesthathavefixedordeterminablepaymentsthatarenotquotedinanactivemarketareclassifiedasloansandreceivablesfinancialassets.Loansandreceivablesfinancialassetsaremeasuredatamortisedcostusingtheeffectiveinterestmethod,lessanyimpairmentloss.Interestincomeisrecognisedbyapplyingtheeffectiveinterestrate,exceptforshort-termreceivableswhentherecognitionofinterestwouldbeimmaterial.

• Available-for-sale Financial Assets

Available-for-sale financial assets arenon-derivative financial assets that aredesignated inthiscategoryorarenotclassifiedinanyoftheothercategories.

Afterinitialrecognition,available-for-salefinancialassetsareremeasuredtotheirfairvaluesat theendofeachreportingperiod.Gainsandlossesarisingfromchanges infairvaluearerecognised inother comprehensive incomeand accumulated in the fair value reserve,withtheexceptionofimpairmentlosses.Onderecognition,thecumulativegainorlosspreviouslyaccumulatedinthefairvaluereserveisreclassifiedfromequityintoprofitorloss.

Dividendsonavailable-for-saleequityinstrumentsarerecognisedinprofitorlosswhentheGroup’srighttoreceivepaymentsisestablished.

Investmentsinequityinstrumentswhosefairvaluecannotbereliablymeasuredaremeasuredatcostlessaccumulatedimpairmentlosses,ifany.

(ii) Financial Liabilities

All financial liabilities are initially at fair value plus directly attributable transaction costs andsubsequently measured at amortised cost using the effective interest method other than thosecategorisedasfairvaluethroughprofitorloss.

Fair value through profit or loss category comprises financial liabilities that are either held fortrading or are designated to eliminate or significantly reduce a measurement or recognitioninconsistencythatwouldotherwisearise.Derivativesarealsoclassifiedasheldfortradingunlesstheyaredesignatedashedges.




(b) Financial Instruments (Cont’d)

(iii) Equity Instruments

Ordinarysharesareclassifiedasequity.Incrementalcostsdirectlyattributabletotheissueofnewsharesoroptionsareshowninequityasadeduction,netoftax,fromproceeds.

Dividendsonordinarysharesarerecognisedasliabilitieswhenapprovedforappropriation.

(c) Functional and Foreign Currencies

(i) Functional and Presentation Currency

TheindividualfinancialstatementsofeachentityintheGrouparepresentedinthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates,whichisthefunctionalcurrency.

TheconsolidatedfinancialstatementsarepresentedinRinggitMalaysia,whichistheCompany’sfunctionalandpresentationcurrency.

(ii) Transactions and Balances

Transactionsinforeigncurrenciesareconvertedintotherespectivefunctionalcurrenciesoninitialrecognition,usingtheexchangeratesapproximatingthoserulingatthetransactiondates.Monetaryassetsandliabilitiesat theendofthereportingperiodaretranslatedat theratesrulingasofthatdate.Non-monetaryassetsandliabilitiesaretranslatedusingexchangeratesthatexistedwhenthevaluesweredetermined.Allexchangedifferencesarerecognisedinprofitorloss.

(d) Basis of Consolidation

The consolidated financial statements include the financial statements of the Company and all itssubsidiariesmadeupto30June2013.

Asubsidiaryisdefinedasacompanyinwhichtheparentcompanyhasthepower,directlyorindirectly,toexercisecontroloveritsfinancialandoperatingpoliciessoastoobtainbenefitsfromitsactivities.

SubsidiariesareconsolidatedfromthedateonwhichcontrolistransferredtotheGroupuptotheeffectivedateonwhichcontrolceases,asappropriate.

Acquisitionofbusinessesareaccountedforusingtheacquisitionmethodotherthanthoseresultedinabusinesscombination involvingcommoncontrolentities isoutside thescopeofMFRS3.ThemergeraccountingisusedbytheGrouptoaccountforsuchcommoncontrolbusinesscombinations.

(i) Merger accounting for common control business combinations

A business combination involving entities under common control is a business combination inwhich all the combining entities or subsidiaries are ultimately controlled by the sameparty andpartiesbothbeforeandafterthebusinesscombination,andthatcontrolisnottransitory.

Subsidiariesacquiredwhichhavemet thecriteria forpoolingof interestareaccountedforusingmergeraccountingprinciples.Underthemergermethodofaccounting,theresultsofthesubsidiariesarepresentedasifthemergerhadbeeneffectedthroughoutthecurrentfinancialyear.




(d) Basis of Consolidation (Cont’d)

(i) Merger accounting for common control business combinations (Cont’d)

The assets and liabilities combined are accounted for based on the carrying amounts from theperspectiveof the commoncontrol shareholder at thedate of transfer.No amount is recognisedinrespectofgoodwillandexcessof theacquirer’s interest inthenetfairvalueof theacquiree’sidentifiable assets and liabilities and contingent liabilities over cost at the time of the commoncontrolbusinesscombinationtotheextentofthecontinuationofthecontrollingpartyandparties’interests.

Whenthemergermethodisused,thecostofinvestmentintheCompany’sbooksisrecordedatthenominalvalueofsharesissued.Thedifferencebetweenthecarryingvalueoftheinvestmentandthenominalvalueofthesharesofthesubsidiariesistreatedasamergerdeficitormergerreserveasapplicable.Theresultsofthesubsidiariesbeingmergedareincludedforthefullfinancialyear.

Acquisitionsofbusinessesareaccountedforusingtheacquisitionmethod.Undertheacquisitionmethod,theconsiderationtransferredforacquisitionofasubsidiaryisthefairvalueoftheassetstransferred, liabilities incurred and the equity interests issued by the Group at the acquisitiondate.Theconsiderationtransferredincludesthefairvalueofanyassetorliabilityresultingfromacontingentconsiderationarrangement.Acquisition-relatedcosts,otherthanthecoststoissuedebtorequitysecurities,arerecognisedinprofitorlosswhenincurred.

(ii) Acquisition method of accounting for non-common control business combinations

Inabusinesscombinationachievedinstages,previouslyheldequityinterestsintheacquireeareremeasuredtofairvalueattheacquisitiondateandanycorrespondinggainorlossisrecognisedinprofitorloss.

Intragrouptransactions,balances,incomeandexpensesareeliminated.Wherenecessary,adjustmentsaremadetothefinancialstatementsofsubsidiariestoensureconsistencyofaccountingpolicieswiththoseoftheGroup.

Non-controlling interests in the acquireemaybe initiallymeasured either at fair valueor at thenon-controllinginterests’proportionateshareofthefairvalueoftheacquiree’sidentifiablenetassetsatthedateofacquisition.Thechoiceofmeasurementbasisismadeonatransaction-by-transactionbasis.

Non-controllinginterestsarepresentedwithinequityintheconsolidatedstatementoffinancialposition,separately from theCompany’s shareholders’ equity, and are separatelydisclosed in the consolidatedstatement of comprehensive income. Transactionswith non-controlling interests are accounted for astransactionswithownersandarerecogniseddirectlyinequity.Profitorlossandeachcomponentofothercomprehensive incomeare attributed to theownersof theparent and to thenon-controlling interests.Total comprehensive income is attributed to non-controlling interests even if this results in the non-controllinginterestshavingadeficitbalance.

At theendofeachreportingperiod, thecarryingamountofnon-controllinginterests is theamountofthose interestsat initial recognitionplus thenon-controlling interests’ shareofsubsequentchanges inequity.

Allchangesintheparent’sownershipinterestinasubsidiarythatdonotresultinalossofcontrolareaccountedforasequitytransactions.Anydifferencebetweentheamountbywhichthenon-controllinginterestisadjustedandthefairvalueofconsiderationpaidorreceivedisrecogniseddirectlyinequityandattributedtoownersoftheparent.




(d) Basis of Consolidation (Cont’d)

Uponlossofcontrolofasubsidiary,theprofitorlossondisposaliscalculatedasthedifferencebetween:-

(i) the aggregate of the fair value of the consideration received and the fair value of any retainedinterestintheformersubsidiary;and

(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the formersubsidiaryandanynon-controllinginterests.

(e) Goodwill

Goodwillismeasuredatcostlessaccumulatedimpairmentlosses,ifany.Thecarryingvalueofgoodwillis reviewed for impairmentannually.The impairmentvalueofgoodwill is recognised immediately inprofitorloss.Animpairmentlossrecognisedforgoodwillisnotreversedinasubsequentperiod.

Undertheacquisitionmethod,anyexcessofthesumofthefairvalueoftheconsiderationtransferredinthebusinesscombination, theamountofnon-controlling interests recognisedandthefairvalueof theGroup’spreviouslyheldequityinterestintheacquiree(ifany),overthenetfairvalueoftheacquiree’sidentifiableassetsandliabilitiesatthedateofacquisitionisrecordedasgoodwill.

Wherethelatteramountexceedstheformer,afterreassessment,theexcessrepresentsabargainpurchasegainandisrecognisedasagaininprofitorloss.

(f) Investments in Subsidiaries

InvestmentsinsubsidiariesarestatedatcostinthestatementoffinancialpositionoftheCompanyandarereviewedforimpairmentattheendofthereportingperiodifeventsorchangesincircumstancesindicatethattheircarryingvaluesmaynotberecoverable.

Onthedisposaloftheinvestmentsinsubsidiaries,thedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheinvestmentsisrecognisedinprofitorloss.

(g) Property, Plant and Equipment

Property,plantandequipment,otherthanfreeholdland,arestatedatcostlessaccumulateddepreciationandimpairment losses, ifany.Freeholdlandisstatedatcost less impairment losses, ifanyandisnotdepreciated.

Depreciationiscalculatedonthestraight-linemethodtowriteoffthedepreciableamountoftheassetsovertheirestimatedusefullives.Depreciationofanassetdoesnotceasewhentheassetbecomesidleorisretiredfromactiveuseunlesstheassetisfullydepreciated.Theprincipalannualratesofdepreciationandresidualvaluesareasfollows:

Depreciation Rate Residual Value

Buildings 3% - Plantandmachinery 10% - Motorvehicles 20% 5%-20% Officeequipment 10%-25% - Electricalappliances 20% - Furnitureandfittings 10% - Renovation 20% - Factoryandwarehouseequipment 10%-15% -




(g) Property, Plant and Equipment (Cont’d)

The depreciationmethod, useful lives and residual values are reviewed, and adjusted if appropriate,at theendof the reportingperiod toensure that theamounts,methodandperiodsofdepreciationareconsistent with previous estimates and the expected pattern of consumption of the future economicbenefitsembodiedintheitemsoftheproperty,plantandequipment.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, asappropriate,onlywhenthecostisincurredanditisprobablethatthefutureeconomicbenefitsassociatedwith theassetwillflowto theGroupandthecostof theassetcanbemeasuredreliably.Thecarryingamountofpartsthatarereplacedisderecognised.Thecostsoftheday-to-dayservicingofproperty,plantandequipmentare recognised inprofitor lossas incurred.Costalsocomprises the initial estimateofdismantlingandremovingtheassetandrestoringthesiteonwhichitislocatedforwhichtheGroupisobligatedtoincurwhentheassetisacquired,ifapplicable.

An itemofproperty,plantandequipment isderecognisedupondisposalorwhenno futureeconomicbenefitsareexpectedfromitsuse.Anygainorlossarisingfromderecognitionoftheassetisincludedintheincomestatementsintheyeartheassetisderecognised.

(h) Impairment

(i) Impairment of Financial Assets

Allfinancialassets(otherthanthosecategorisedatfairvaluethroughprofitorloss),areassessedattheendofeachreportingperiodwhetherthereisanyobjectiveevidenceofimpairmentasaresultofoneormoreeventshavinganimpactontheestimatedfuturecashflowsoftheasset.Foranequityinstrument,asignificantorprolongeddecline in thefairvaluebelowitscost isconsidered tobeobjectiveevidenceofimpairment.

Animpairmentlossinrespectofheld-to-maturityinvestmentsandloansandreceivablesfinancialassetsisrecognisedinprofitorlossandismeasuredasthedifferencebetweentheasset’scarryingamount and the present value of estimated future cash flows, discounted at the financial asset’soriginaleffectiveinterestrate.

Animpairmentlossinrespectofavailable-for-salefinancialassetsisrecognisedinprofitorlossandismeasuredasthedifferencebetweenitscost(netofanyprincipalpaymentandamortisation)anditscurrentfairvalue,lessanyimpairmentlosspreviouslyrecognisedinthefairvaluereserve.Inaddition,thecumulativelossrecognisedinothercomprehensiveincomeandaccumulatedinequityunderfairvaluereserve,isreclassifiedfromequitytoprofitorloss.

Withtheexceptionofavailable-for-saleequityinstruments,if,inasubsequentperiod,theamountoftheimpairmentlossdecreasesandthedecreasecanberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised,thepreviouslyrecognisedimpairmentlossisreversedthroughprofitor loss to theextent that thecarryingamountof the investmentat thedate the impairmentis reversed does not exceed what the amortised cost would have been had the impairment notbeenrecognised.Inrespectofavailable-for-saleequityinstruments,impairmentlossespreviouslyrecognised in profit or loss are not reversed through profit or loss. Any increase in fair valuesubsequenttoanimpairmentlossmadeisrecognisedinothercomprehensiveincome.




(h) Impairment (Cont’d)

(ii) Impairment of Non-Financial Assets

Thecarryingvaluesofassets,otherthanthosetowhichMFRS136-ImpairmentofAssetsdoesnotapply,arereviewedattheendofeachreportingperiodforimpairmentwhenthereisanindicationthat the assetsmight be impaired. Impairment ismeasured by comparing the carrying values oftheassetswith their recoverableamounts.The recoverableamountof theassets is thehigheroftheassets’ fairvalue lesscosts to selland theirvalue inuse,which ismeasuredby reference todiscountedfuturecashflow.

An impairment loss is recognised in profit or loss immediately unless the asset is carried at itsrevaluedamount.Anyimpairmentlossofarevaluedassetistreatedasarevaluationdecreasetotheextentofapreviouslyrecognisedrevaluationsurplusforthesameasset.

Inrespectofassetsotherthangoodwill,andwhenthereisachangeintheestimatesusedtodeterminetherecoverableamount,asubsequentincreaseintherecoverableamountofanassetistreatedasareversalofthepreviousimpairmentlossandisrecognisedtotheextentofthecarryingamountoftheassetthatwouldhavebeendetermined(netofamortisationanddepreciation)hadnoimpairmentlossbeenrecognised.Thereversal isrecognisedinprofitor lossimmediately,unlesstheasset iscarriedatitsrevaluedamount.Areversalofanimpairmentlossonarevaluedassetiscreditedtoothercomprehensiveincome.However,totheextentthatanimpairmentlossonthesamerevaluedassetwaspreviouslyrecognisedasanexpenseinthestatementofprofitorloss,areversalofthatimpairmentlossisrecognisedasincomeinthestatementofprofitorloss.

(i) Inventories

Inventoriesarestatedatthelowerofcostandnetrealisablevalue.Costisdeterminedonthefirst-in-first-outbasis,andcomprisesthepurchasepriceandincidentalsincurredinbringingtheinventoriestotheirpresentlocationandcondition.Costoffinishedgoodsandwork-in-progressincludethecostofmaterials,labourandanappropriateproportionofproductionoverheads.

Netrealisablevaluerepresentstheestimatedsellingpricelesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesale.

Wherenecessary,dueallowanceismadeforalldamaged,obsoleteandslow-movingitems.

(j) Provisions, Contingent Liabilities and Contingent Assets

ProvisionsarerecognisedwhentheCompanyhasapresentobligationasaresultofpastevents,whenit isprobable thatanoutflowof resourcesembodyingeconomicbenefitswillbe required to settle theobligation,andwhenareliableestimateoftheamountcanbemade.Provisionsarereviewedattheendofeachreportingperiodandadjustedtoreflectthecurrentbestestimate.Wheretheeffectofthetimevalueofmoneyismaterial,theprovisionisthepresentvalueoftheestimatedexpenditurerequiredtosettletheobligation.

AcontingentliabilityisapossibleobligationthatarisesfrompasteventsandwhoseexistencewillonlybeconfirmedbytheoccurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheGroup.Itcanalsobeapresentobligationarisingfrompasteventsthatisnotrecognisedbecauseitisnotprobablethatanoutflowofeconomicresourceswillberequiredortheamountofobligationcannotbemeasuredreliably.




(j) Provisions, Contingent Liabilities and Contingent Assets (Cont’d)

Acontingentliabilityisnotrecognisedbutisdisclosedinthenotestothefinancialstatements.Whenachangeintheprobabilityofanoutflowoccurssothattheoutflowisprobable,itwillthenberecognisedasaprovision.

Acontingentassetisaprobableassetthatarisesfrompasteventsandwhoseexistencewillbeconfirmedonlybyoccurrenceornon-occurrenceofoneormoreuncertaineventsnotwhollywithinthecontroloftheGroup.

(k) Income Taxes Incometaxfortheyearcomprisescurrentanddeferredtax.

Currenttaxistheexpectedamountofincometaxespayableinrespectofthetaxableprofitfortheyearand ismeasuredusing the tax rates thathavebeenenactedor substantively enactedat the endof thereportingperiod.

Deferredtaxisprovidedinfull,usingtheliabilitymethod,ontemporarydifferencesarisingbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsinthefinancialstatements.

Deferred tax liabilitiesare recognisedforall taxable temporarydifferencesother than those thatarise

fromgoodwillorexcessoftheacquirer’sinterestinthenetfairvalueoftheacquiree’sidentifiableassets,liabilitiesandcontingentliabilitiesoverthebusinesscombinationcostsorfromtheinitialrecognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationandatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit.

Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditstotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditscanbeutilitised.Thecarryingamountsofdeferredtaxassetsarereviewedattheendofeachreportingperiodandreducedtotheextentthatitisnolongerprobablethatsufficientfuturetaxableprofitswillbeavailabletoallowallorpartofthedeferredtaxassetstobeutilised.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplyintheperiodwhen the asset is realised or the liability is settled, based on the tax rates that have been enacted orsubstantivelyenactedattheendofthereportingperiod.

Deferredtaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandwhenthedeferredincometaxesrelatetothesametaxationauthority.

Deferredtaxrelatingtoitemsrecognisedoutsideprofitorlossisrecognisedoutsideprofitorloss.Deferredtax items are recognised in correlation to the underlying transactions either in other comprehensiveincome or directly in equity and deferred tax arising from a business combination is included in theresultinggoodwillorexcessoftheacquirer’sinterestinthenetfairvalueoftheacquiree’sidentifiableassets,liabilitiesandcontingentliabilitiesoverthebusinesscombinationcosts.




(l) Borrowing Costs

Borrowingcostsdirectlyattributabletotheacquisitionandconstructionofproperty,plantandequipmentarecapitalisedaspartofthecostofthoseassets,untilsuchtimeastheassetsarereadyfortheirintendeduse or sale. Capitalisation of borrowing costs is suspended during extended periods in which activedevelopmentisinterrupted.

Allotherborrowingcostsarerecognisedinprofitorlossintheperiodinwhichtheyareincurred.

(m) Operating Segments

AnoperatingsegmentisacomponentoftheGroupthatengagesinbusinessactivitiesfromwhichitmayearnrevenuesandincurexpenses,includingrevenuesandexpensesthatrelatetotransactionswithanyoftheGroup’sothercomponents.Anoperatingsegment’soperatingresultsarereviewedregularlybythechiefoperatingdecisionmakertomakedecisionsaboutresourcestobeallocatedtothesegmentandassessitsperformance,andforwhichdiscretefinancialinformationisavailable.

(n) Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand, bank balances, demand deposits, deposits pledgedwith financial institutions, bank overdrafts and short-term, highly liquid investments that are readilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.

(o) Employee Benefits

(i) Short-term Benefits

Wages,salaries,paidannualleave,bonusesandnon-monetarybenefitsareaccruedintheperiodinwhichtheassociatedservicesarerenderedbyemployeesoftheGroup.

(ii) Defined Contribution Plans

TheGroup’scontributionstodefinedcontributionplansarerecognisedinprofitorlossintheperiodtowhichtheyrelate.Oncethecontributionshavebeenpaid,theGrouphasnofurtherliabilityinrespectofthedefinedcontributionplans.

(p) Related Parties

Apartyisrelatedtoanentity(referredtoasthe“reportingentity”)if:-

(a) Apersonoraclosememberofthatperson’sfamilyisrelatedtoareportingentityifthatperson:-

(i) hascontrolorjointcontroloverthereportingentity;(ii) hassignificantinfluenceoverthereportingentity;or(iii) is amemberof thekeymanagementpersonnelof the reportingentityorofaparentof the

reportingentity.

(b) Anentityisrelatedtoareportingentityifanyofthefollowingconditionsapplies:-

(i) Theentityand thereportingentityaremembersof thesamegroup(whichmeans thateachparent,subsidiaryandfellowsubsidiaryisrelatedtotheothers).

(ii) Oneentityisanassociateorjointventureoftheotherentity(oranassociateorjointventureofamemberofagroupofwhichtheotherentityisamember).

(iii) Bothentitiesarejointventuresofthesamethirdparty.




(p) Related Parties (Cont’d)

(b) Anentityisrelatedtoareportingentityifanyofthefollowingconditionsapplies(cont’d):-

(iv) Oneentityisajointventureofathirdentityandtheotherentityisanassociateofthethirdentity.

(v) Theentityisapost-employmentbenefitplanforthebenefitofemployeesofeitherthereportingentityoranentityrelatedtothereportingentity.Ifthereportingentityisitselfsuchaplan,thesponsoringemployersarealsorelatedtothereportingentity.

(vi) Theentityiscontrolledorjointlycontrolledbyapersonidentifiedin(a)above.(vii)Apersonidentifiedin(a)(i)abovehassignificantinfluenceovertheentityorisamemberof

thekeymanagementpersonneloftheentity(orofaparentoftheentity).

Close members of the family of a person are those family members who may be expected toinfluence,orbeinfluencedby,thatpersonintheirdealingswiththeentity.

(q) Revenue Recognition

(i) Sale of Goods

Revenueisrecognisedupondeliveryofgoodsandcustomers’acceptance,andwhereapplicable,netofreturnsandtradediscounts.

(ii) Interest Income

Interestincomeisrecognisedonanaccrualbasis,basedoneffectiveyieldontheinvestments.

(iii) Dividend Income

Dividendsfromsubsidiariesarerecognisedwhentheshareholders’righttoreceiveisestablished.

(iv) Management Fees and Rental Income

Managementfeesandrentalincomearerecognisedonanaccrualbasis.



6. INVESTMENTS IN SUBSIDIARIES

The Company 2013 2012 RM’000 RM’000

Unquotedshares,atcost 57,565 54,915

Detailsofthesubsidiaries,whichareallincorporatedinMalaysia,areasfollows:-

Effective Equity Interest Name of the Companies 2013 2012 Principal Activities

Monsieur(M)Sdn.Bhd. 100% 100% Retailingofhomelinenandhomeware.

SyarikatYoongOnnSdn.Bhd. 100% 100% Distributionandtradingofhomelinenand homeware. ElegantTotalHomeSdn.Bhd. 100% 100% Distributionandtradingofhomelinenand homeware. SleepFocusSdn.Bhd. 100% 100% Designandmanufactureofhomelinenand beddingaccessoriesandtradingofhome linen.

7. PROPERTY, PLANT AND EQUIPMENT

At Written Off/ Depreciation At 1.7.2012 Additions Disposals Charge 30.6.2013 THE GROUP RM’000 RM’000 RM’000 RM’000 RM’000

NetBookValue

Freeholdland 8,650 - - - 8,650 Buildings 20,371 24 (31) (390) 19,974 Plantandmachinery 963 364 - (258) 1,069 Factoryandwarehouseequipment 1,833 70 - (300) 1,603 Motorvehicles 2,722 - (38) (690) 1,994 Officeequipment 1,549 889 (25) (605) 1,808 Electricalappliances 553 323 (4) (192) 680 Renovation 1,087 500 (27) (388) 1,172 Furnitureandfittings 1,792 542 (108) (292) 1,934

Total 39,520 2,712 (233) (3,115) 38,884



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

At Written Off/ Depreciation At 1.7.2011 Additions Disposals Charge 30.6.2012 THE GROUP RM’000 RM’000 RM’000 RM’000 RM’000

NetBookValue

Freeholdland 8,650 - - - 8,650 Buildings 16,550 4,561 - (740) 20,371 Plantandmachinery 1,142 100 - (279) 963 Factoryandwarehouseequipment 518 1,434 - (119) 1,833 Motorvehicles 2,718 396 (18) (374) 2,722 Officeequipment 1,261 718 (6) (424) 1,549 Electricalappliances 176 500 (8) (115) 553 Renovation 690 819 (27) (395) 1,087 Furnitureandfittings 1,007 1,044 (53) (206) 1,792

Total 32,712 9,572 (112) (2,652) 39,520

Accumulated Net Book At Cost Depreciation Value THE GROUP RM’000 RM’000 RM’000

At30June2013 Freeholdland 8,650 - 8,650 Buildings 21,104 (1,130) 19,974 Plantandmachinery 6,112 (5,043) 1,069 Factoryandwarehouseequipment 2,390 (787) 1,603 Motorvehicles 4,718 (2,724) 1,994 Officeequipment 3,839 (2,031) 1,808 Electricalappliances 1,375 (695) 680 Renovation 3,728 (2,556) 1,172 Furnitureandfittings 3,024 (1,090) 1,934

54,940 (16,056) 38,884

At30June2012

Freeholdland 8,650 - 8,650 Buildings 21,111 (740) 20,371 Plantandmachinery 5,748 (4,785) 963 Factoryandwarehouseequipment 2,325 (492) 1,833 Motorvehicles 4,792 (2,070) 2,722 Officeequipment 3,017 (1,468) 1,549 Electricalappliances 1,070 (517) 553 Renovation 3,530 (2,443) 1,087 Furnitureandfittings 2,703 (911) 1,792

52,946 (13,426) 39,520



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

At Depreciation At 1.7.2012 Addition Charge 30.6.2013 THE COMPANY RM’000 RM’000 RM’000 RM’000

NetBookValue Officeequipment 6 - (3) 3

At Depreciation At 1.7.2011 Addition Charge 30.6.2012 RM’000 RM’000 RM’000 RM’000

NetBookValue

Officeequipment 6 3 (3) 6

At Accumulated Net Book Cost Depreciation Value THE COMPANY RM’000 RM’000 RM’000

At30June2013

Officeequipment 12 (9) 3

At Accumulated Net Book Cost Depreciation Value RM’000 RM’000 RM’000

At30June2012

Officeequipment 12 (6) 6

Inthepreviousfinancialyear,thefreeholdlandandbuildingsoftheGrouphavebeenpledgedtoabankassecurityforbankingfacilitiesgrantedtotheGroupasdisclosedinNote21tothefinancialstatements.



8. GOODWILL

The goodwill relates to the retailing segment. The Group reviews goodwill for impairment annually inaccordancewithitsaccountingpolicy.

TheGrouphasassessedtherecoverableamountofgoodwillusingthevalue-in-useapproachandisbasedonthefinancialbudgetsapprovedbymanagement.Themanagementhasprojectedcashflowsforaperiodofoneyear.Thekeyassumptionsusedforvalue-in-usecalculationsareasfollows:-

(a) Budgetedrevenue Sales growth rate of 14% is used based on the expected demand of homefurnishingproductstobederivedfrombothexistingandfutureboutiquesinthebudgetedperiod.

(b) Budgetedgrossmargin Budgetedgrossprofitmarginof53% is determinedbasedon thehistoricaltrackrecordandafterconsideringdomesticeconomicconditions.

(c) Discountrate The discount rate used is pre-tax and reflect specific risks relating to theindustry.

9. INVENTORIES

The Group 2013 2012 RM’000 RM’000

Atcost:- Rawmaterials 12,315 12,857 Workinprogress 2,890 2,820 Finishedgoods 36,471 34,206 Stock-in-transit 2,647 1,136

54,323 51,019 Atnetrealisablevalue:- Rawmaterials 1,526 1,174 Finishedgoods 1,374 1,141 2,900 2,315 Totalinventories 57,223 53,334



10. TRADE RECEIVABLES

The Group 2013 2012 RM’000 RM’000

Tradereceivables 34,694 28,540 Allowanceforimpairmentlosses (45) (13)

34,649 28,527

Allowanceforimpairmentlosses: At1July2012/2011 (13) (179) Additionduringthefinancialyear (33) - Writtenoffduringthefinancialyear 1 98 Writebackduringthefinancialyear - 68

(45) (13)

TheGroup’snormalcredittermsoftradereceivablesrangefrom30to90days.Othercredittermsareassessedandapprovedonacase-by-casebasis.

11. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

Includedinotherreceivables,depositsandprepaymentsoftheGroupisanamountofRM4,126,678(2012-RM2,831,524),beingdepositsmadetosuppliersforfuturesupplyofmaterialsandfinishedgoods.

Thesedepositsshallberecoveredbywayofset-offagainstthesupplyofmaterialsandfinishedgoods.

12. AMOUNT OWING BY SUBSIDIARIES

Theamountowingbysubsidiariesisnon-tradeinnature,unsecured,interest-freeandrepayableondemand,exceptforanamountofRM4,000,000(2012-RM14,500,000)whichboreaninterestrateof3.00%(2012-3.00%)perannuminaccordancewiththecommercialbank’s1monthfixeddepositrate.Theamountsaretobesettledincash.



13. SHORT-TERM INVESTMENT


Fixedincometrustfund,atfairvalue 10,000 7,000 10,000 7,000

Atmarketvalue 10,000 7,000 10,000 7,000

The investment in fixed income trust fund represents investment in highly liquidmoneymarket,which isreadily convertible to aknownamountof cash.Theeffective interest rate is approximately2.74% (2012 -2.78%)perannum.Theshort-terminvestmentisdesignatedasfairvaluethroughprofitorlossandismeasuredatfairvalue.

14. DEPOSITS WITH FINANCIAL INSTITUTIONS

IncludedindepositswithfinancialinstitutionsinthepreviousfinancialyearwasanamountofRM3,450,219whichwaspledgedtolicensedbanksforcreditfacilitiesgrantedtotheGroup.

Theeffectiveinterestratesofthedepositswithfinancialinstitutionsattheendofthereportingperiodrangedfrom2.35%to3.25%(2012-2.20%to3.06%)perannum.Thedepositshavematurityperiodsrangingfrom1to90days(2012-1to30days).

15. SHARE CAPITAL

The Company 2013 2012 Number Number Par of Share of Share Value ’000 RM’000 ’000 RM’000

Authorised:

At30June2013/2012 0.50 200,000 100,000 200,000 100,000

IssuedandFullyPaid-Up:

At1July2012/2011 0.50 160,000 80,000 120,000 60,000 Bonusissue 0.50 - - 40,000 20,000

At30June2013/2012 0.50 160,000 80,000 160,000 80,000



16. SHARE PREMIUM


At1July2012/2011 - 8,685 - 8,685 Bonusissue - (8,685) - (8,685)

At30June2013/2012 - - - -

ThesharepremiumisnotdistributablebywayofcashdividendsandmaybeutilisedinthemannersetoutinSection60(3)oftheCompaniesAct1965.

17. MERGER DEFICIT

Themergerdeficitrelatestothesubsidiarieswhichwereconsolidatedunderthemergermethodofaccounting.

ThemergerdeficitarosefromthedifferencebetweenthenominalvalueofsharesissuedfortheacquisitionofthesubsidiariesamountingtoRM47,414,628andthenominalvalueofthesharesacquiredofRM3,050,000.

18. RETAINED PROFITS

TheCompanyhaselectedfortheirrevocableoptionforthesingletiertaxsystem.Therefore,attheendofthereportingperiod,theCompanywillbeabletodistributedividendsoutofitsentireretainedprofitsunderthesingletiertaxsystem.

19. DEFERRED TAX LIABILITIES

The Group 2013 2012 RM’000 RM’000

At1July2012/2011 1,874 1,898 Recognisedinprofitorloss(Note24) 188 (24)

At30June2013/2012 2,062 1,874

Thedeferredtaxliabilitiesareattributabletothefollowing:-

The Group 2013 2012 RM’000 RM’000

Surplusesonrevaluationofproperties 1,505 1,528 Acceleratedcapitalallowancesonqualifyingcostsofproperty,plantand 1,338 1,208 equipment Othertemporarydifferences (781) (862)

2,062 1,874



20. TRADE PAYABLES

ThenormaltradecredittermsgrantedtotheGrouprangefrom30to120days.

21. SHORT-TERM BORROWINGS

The Group 2013 2012 RM’000 RM’000

Bankers’acceptances 24,124 20,813

Thebankers’acceptancesattheendofthereportingperiodboreinterestratesrangingfrom4.22%to5.19%(2012-4.13%to4.86%).

Inthepreviousfinancialyearbankers’acceptanceweresecuredby:-

(i) apledgeoffixeddepositsoftheGroup;and

(ii) alegalchargeofthefreeholdlandandbuildingsoftheGroup.

22. REVENUE


Saleofgoods 178,607 153,913 - - Managementfee - - 448 481 Dividendincome - - 4,190 8,962

178,607 153,913 4,638 9,443



23. PROFIT BEFORE TAXATION


Profitbeforetaxationisarrivedatafter charging/(crediting):

Allowancefor/(Writebackof)slow-moving 237 (51) - - inventories Allowancefor/(Writebackof)impairmentloss 33 (68) - - ontradereceivables Writeoffoftradereceivables 20 - - - Auditfee: -forthefinancialyear 115 116 27 27 -(over)/underprovisionintheprevious financialyear (2) 2 (2) - Directors’remuneration: -non-feeemoluments 1,105 1,126 18 22 -fee 156 156 156 156 -definedcontributionplans 130 133 - - -estimatednon-monetarybenefits-in-kind 48 42 - - Depreciationofproperty,plantandequipment 3,115 2,652 3 3 Interestexpense: -bankers’acceptances 842 829 - - -hirepurchase - 1 - - -others 11 10 - - Plantandequipmentwrittenoff 192 94 - - Impairmentlossongoodwill - 176 - - Rentalofpremises 4,904 4,263 - - Staffcosts: -short-termbenefits 27,206 21,887 253 292 -definedcontributionplans 2,221 1,649 29 36 -estimatednon-monetarybenefits-in-kind 69 68 - 7 Loss/(Gain)onforeignexchange: -realised 46 (572) - - -unrealised (18) (163) - - Gainondisposalofplantandequipment (9) (9) - - Interestincome (627) (521) (839) (813) Dividendincome - - (4,190) (8,962) Rentalincome (12) (12) - -



24. INCOME TAX EXPENSE


Currenttaxexpense: -forthefinancialyear 7,009 6,118 461 2,107 -underprovisioninthepreviousfinancialyear 30 111 1 33

7,039 6,229 462 2,140

Deferredtaxexpense(Note19): -relatingtoreversalandoriginationof 163 - - - temporarydifferences -Under/(over)provisionintheprevious financialyear 25 (24) - -

188 (24) - -

7,227 6,205 462 2,140

Duringthecurrentfinancialyear,thestatutorytaxrateremainedat25%.

A reconciliation of income tax expense applicable to the profit before taxation at the statutory tax rate toincometaxexpenseattheeffectivetaxrateoftheGroupandoftheCompanyareasfollows:-


Profitbeforetaxation 27,680 23,482 4,781 9,332 Taxatthestatutorytaxrateof25% 6,920 5,871 1,195 2,333 Taxeffectsof:- Non-taxablegain (805) (372) (804) (298) Non-deductibleexpenses 1,120 632 71 72 Doublededuction (63) (37) - - Underprovisionintheprevious financialyear: -currenttax 30 111 - 33 -deferredtax 25 - - -

Taxforthefinancialyear 7,227 6,205 462 2,140



25. EARNINGS PER SHARE

ThebasicearningspershareiscalculatedbydividingtheGroup’sprofitaftertaxationattributabletoownersoftheCompanyofRM20,453,803(2012-RM17,276,988)bytheweightedaveragenumberofordinarysharesinissueduringthefinancialyearof160,000,000(2012-160,000,000).

Thedilutedearningspershareisnotpresentedastherewerenopotentialdilutiveordinarysharesoutstandingattheendofthereportingperiod.

26. DIVIDENDS

The Group/The Company 2013 2012 RM’000 RM’000

Recognisedasdistributiontoowners:- -Interimsingletierdividendof2.0senperordinaryshareforthefinancial - 3,200 yearended30June2012 -Finalsingletierdividendof1.5senperordinaryshareforthefinancial 2,400 - yearended30June2012 -Interimsingletierdividendof2.0senperordinaryshareforthefinancial 3,200 - yearended30June2013

5,600 3,200

Netdividendpershare(sen) 3.5 2.0

27. CASH AND CASH EQUIVALENTS

Forthepurposeofthestatementsofcashflows,cashandcashequivalentscomprisethefollowing:-


Cashandbankbalances 4,126 5,956 91 150 Depositswithfinancialinstitutions(Note14) 27,234 16,950 15,430 8,600 Shortterminvestment(Note13) 10,000 7,000 10,000 7,000

41,360 29,906 25,521 15,750



28. DIRECTORS’ REMUNERATION


Executive: -non-feeemoluments 1,087 1,104 - - -definedcontributionplan 130 133 - - -estimatednon-monetarybenefits-in-kind 48 42 - -

1,265 1,279 - -

NonExecutive: -non-feeemoluments 18 22 18 22 -fee 156 156 156 156

174 178 174 178

The aggregate amount of emoluments received and receivable by thedirectors of theCompanyduring thefinancialyearinbandsofRM50,000areasfollows:-

Directors’ Number of Directors’ Other Directors Fee Emoluments Total THE GROUP RM’000 RM’000 RM’000

2013 -BelowRM50,000 3 108 14 122 -BetweenRM50,001andRM100,000 1 48 4 52 -BetweenRM550,001andRM600,000 1 - 586 586 -BetweenRM650,001andRM700,000 1 - 679 679

6 156 1,283 1,439

2012

-BelowRM50,000 3 108 16 124 -BetweenRM50,001andRM100,000 1 48 6 54 -BetweenRM550,001andRM600,000 1 - 592 592 -BetweenRM650,001andRM700,000 1 - 687 687

6 156 1,301 1,457



28. DIRECTORS’ REMUNERATION (CONT’D)

Directors’ Number of Directors’ Other Directors Fee Emoluments Total THE COMPANY RM’000 RM’000 RM’000

2013 -BelowRM50,000 3 108 14 122 -BetweenRM50,001andRM100,000 1 48 4 52

4 156 18 174

2012

-BelowRM50,000 3 108 16 124 -BetweenRM50,001andRM100,000 1 48 6 54

4 156 22 178

29. RELATED PARTY DISCLOSURES

(a) Forthepurposeofthefinancialstatements,theGrouphasrelatedpartyrelationshipswith:

(i) itssubsidiaries;

(ii) thedirectorsandofficerswhoarethekeymanagementpersonnel;and

(iii) entitiescontrolledbythekeymanagementpersonnel/directors/substantialshareholders.



29. RELATED PARTY DISCLOSURES (CONT’D)

(b) Inadditiontotheinformationdisclosedelsewhereinthefinancialstatements,theCompanycarriedoutthefollowingtransactionswiththerelatedpartiesduringthefinancialyear:-


Subsidiaries: -Managementfeesreceivable - - 448 481 -Interestincomereceivable - - 369 440 -Dividendincomereceivable - - 4,190 8,962 Relatedparties: -Managementfeepayableto TanLeeManagementServices* 120 120 - - -RentalofpremisesfromYoonFah RealtySdn.Bhd.** 370 370 - - -SaleofgoodstoTheStore CorporationBerhad*** 5,802 4,848 - -

*-TanLee Management Services is a sole proprietor and is wholly owned by a key management personnel.

**-This company is an entity deemed to be controlled by certain directors of the Company.

***-The company is deemed to be related by virtue of the common directorship of a director.

(c) Keymanagementpersonnel


Short-termemployeebenefits 2,798 2,733 - 174 Definedcontributionplans 335 326 - 19 Estimatednon-monetarybenefits-in-kind 117 111 - 7

3,250 3,170 - 200

Included in the short-term employee benefits of the Group is an amount of RM1,265,096 (2012 -RM1,278,644)inrespectoftheremunerationpayabletoexecutivedirectorsasdisclosedinNote28tothefinancialstatements.



30. OPERATING SEGMENTS

TheGrouphasthreereportablesegments,asdescribedbelow,whicharetheGroup’sstrategicbusinessunits.Thestrategicbusinessunitsofferdifferentproductsandservices,andaremanagedseparately.ThefollowingsummarydescribestheoperationsineachoftheGroup’sreportablesegments:

• Manufacturing - designandmanufacturingofhomelinenandbeddingaccessories.

• Distributionandtrading - distributionandtradingofhomelinenandhomeware.

• Retailing - retailingofhomelinenandhomeware.

Distribution & The Manufacturing Trading Retailing Elimination Group 2013 RM’000 RM’000 RM’000 RM’000 RM’000

Inter-segmentrevenue 35,334 9,656 96 (45,086) - Externalrevenue 28,969 122,721 26,917 - 178,607

Totalrevenue 64,303 132,377 27,013 (45,086) 178,607

Segmentresults 6,856 19,155 2,748 - 28,759 Unallocatedexpenses (226)

Operatingprofits 28,533 Financecosts (481) (361) (11) - (853)

Profitbeforetaxation 27,680 Incometaxexpense (7,227)

Profitaftertaxation 20,453

Otherinformation Segmentassets 63,822 75,389 14,052 - 153,263 Unallocatedassets 25,573

178,836

Segmentliabilities 19,332 12,684 1,431 - 33,447 Unallocatedliabilities 6,050

39,497



30. OPERATING SEGMENTS (CONT’D)

Distribution & The Manufacturing Trading Retailing Elimination Group 2012 RM’000 RM’000 RM’000 RM’000 RM’000

Inter-segmentrevenue 33,340 14,137 6 (47,483) - Externalrevenue 27,839 103,048 23,026 - 153,913

Totalrevenue 61,179 117,185 23,032 (47,483) 153,913

Segmentresults 6,081 17,741 1,051 - 24,873 Unallocatedexpenses (551)

Operatingprofits 24,322

Financecosts (518) (313) (9) - (840)

Profitbeforetaxation 23,482 Incometaxexpense (6,205)

Profitaftertaxation 17,277

Otherinformation Segmentassets 65,835 65,760 9,200 - 140,795

Unallocatedassets 15,983

156,778

Segmentliabilities 13,501 14,686 1,703 - 29,890 Unallocatedliabilities 2,402

32,292




Distribution & The Manufacturing Trading Retailing Group RM’000 RM’000 RM’000 RM’000

2013

Capitalexpenditure 653 866 1,193 2,712 Unallocatedcapitalexpenditure -

2,712

Depreciation 796 1,602 714 3,112 Unallocateddepreciation 3

3,115

Writedownofinventories 126 57 54 237

Interestincome (62) (87) (8) (157) Unallocatedinterestincome (470)

(627)

Interestexpense 481 361 11 853

2012

Capitalexpenditure 305 6,704 2,560 9,569 Unallocatedcapitalexpenditure 3

9,572

Depreciation 1,118 1,057 474 2,649 Unallocateddepreciation 3

2,652

Writedown/(Writeback)ofinventories (38) (58) 45 (51)

Interestincome 72 74 2 148 Unallocatedinterestincome 373

521

Interestexpense 518 312 10 840




GEOGRAPHICAL INFORMATION

Nofinancial informationbasedongeographical locationhasbeenpresented fornon-currentassetsas theseassetsarelocatedwhollyinMalaysia.

Revenueinformationbasedonthegeographicallocationofcustomersrespectivelyareasfollows:

Revenue 2013 2012 RM’000 RM’000

Malaysia 146,198 121,696 Singapore 27,262 24,396 Others 5,147 7,821

178,607 153,913

Major customers

Thefollowingaremajorcustomerswithrevenueequaltoormorethan10%oftheGroup’srevenue:

Revenue Segment 2013 2012 RM’000 RM’000

Alocaldepartmentalstore 46,188 38,683 Distributionandtrading. Anoverseasdistributor 27,262 24,396 Manufacturing,distributionandtrading.

31. CONTINGENT LIABILITIES

Thedirectorsareoftheopinionthatprovisionsarenotrequiredinrespectofthefollowingcorporateguarantees,asitisnotprobablethatafutureoutflowofeconomicbenefitswillarise:-


Unsecured:- Corporateguaranteegiventolicensed banksforcreditfacilitiesgrantedto itssubsidiaries - - 48,070 57,070 Guaranteeissuedinfavourofthirdparties 734 799 - -



32. FOREIGN EXCHANGE RATES

Theprincipalclosingforeignexchangeratesused(expressedonthebasisofoneunitofforeigncurrencytoRMequivalent)forthetranslationoftheforeigncurrencybalancesattheendofthereportingperiodareasfollows:-

2013 2012 RM RM

UnitedStatesDollar 3.17 3.18 SingaporeDollar 2.50 2.50 Euro 4.12 4.00

33. CAPITAL COMMITMENTS


Approvedandcontractedforpurchase ofpropertyandequipment:- -Retailoutletrenovationanddisplay - 435 - -

34. FINANCIAL INSTRUMENTS

TheGroup’sactivitiesareexposedtoavarietyofmarketrisk(includingforeigncurrencyrisk,interestrateriskandequitypricerisk),creditriskandliquidityrisk.TheGroup’soverallfinancialriskmanagementpolicyfocuseson theunpredictabilityoffinancialmarkets and seeks tominimisepotential adverse effects on theGroup’sfinancialperformance.

(a) Financial Risk Management Policies

TheGroup’spoliciesinrespectofthemajorareasoftreasuryactivityareasfollows:-

(i) Market Risk

(i) Foreign Currency Risk TheGroupisexposedtoforeigncurrencyriskontransactionsandbalancesthataredenominated

incurrenciesotherthanRinggitMalaysia.ThecurrenciesgivingrisetothisriskareprimarilyUnitedStatesDollarandSingaporeDollar.Foreigncurrencyriskismonitoredcloselyonanongoingbasistoensurethatthenetexposureisatanacceptablelevel.Onoccasion,theGroupentersintoforwardforeigncurrencycontractstohedgeagainstitsforeigncurrencyrisk.



34. FINANCIAL INSTRUMENTS (CONT’D)

(a) Financial Risk Management Policies (Cont’d)

(i) Market Risk (Cont’d)

(i) Foreign Currency Risk (Cont’d)

TheGroup’sexposuretoforeigncurrencyascomparedtoitsfunctionalcurrencyisasfollows:-

United States Singapore Dollar Euro Dollar Total THE GROUP RM’000 RM’000 RM’000 RM’000

2013 Financial assets Tradereceivables 4,060 - 8,648 12,708 Cashandbankbalances 175 2 128 305

4,235 2 8,776 13,013

Financial liabilities Tradepayables 1,247 - - 1,247

Currency exposure Netfinancialassets 2,988 2 8,776 11,766

2012

Financial assets Tradereceivables 2,422 - 5,440 7,862 Cashandbankbalances 798 7 219 1,024

3,220 7 5,659 8,886

Financial liabilities Tradepayables 259 1 - 260

Currency exposure Netfinancialassets 2,961 6 5,659 8,626






(i) Foreign Currency Risk (Cont’d)

Foreigncurrencyrisksensitivityanalysis

The following table details the sensitivity analysis to a reasonably possible change in theforeigncurrenciesasattheendofthereportingperiod,withallothervariablesheldconstant:-

The Group The Group 2013 2012 Increase/ Increase/ (Decrease) (Decrease) RM’000 RM’000

Effects on profit after taxation and equity UnitedStatesDollar:- -strengthenedby5% 112 111 -weakenedby5% (112) (111)

SingaporeDollar:- -strengthenedby5% 329 212 -weakenedby5% (329) (212)

(ii) Interest Rate Risk

Interestrateriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchanges inmarket interest rates.TheGroup’sexposure to interest rateriskarisesmainlyfrominterest-bearingfinancialassetsandliabilities.TheGroup’spolicyistoobtainthemostfavourableinterestratesavailable.AnysurplusfundsoftheGroupwillbeplacedwithlicensedfinancialinstitutionstogenerateinterestincome.

InformationrelatingtotheGroup’sexposuretotheinterestrateriskofthefinancialliabilitiesisdisclosedinNote34(a)(iii)tothefinancialstatements.






(ii) Interest Rate Risk (Cont’d)

Interestraterisksensitivityanalysis

The following table details the sensitivity analysis to a reasonably possible change in theinterestratesasattheendofthereportingperiod,withallothervariablesheldconstant:-

The Group The Group 2013 2012 Increase/ Increase/ (Decrease) (Decrease) RM’000 RM’000

Effects on profit after taxation and equity

Increaseof100basispoints(bp) 98 24 Decreaseof100bp (98) (24)

(iii) Equity Price Risk

TheGroupdoesnothaveanyquotedinvestmentsandhenceisnotexposedtoequitypricerisk.

(ii) Credit Risk

TheGroup’s exposure to credit risk,or the riskof counterpartiesdefaulting, arisesmainly fromtradeandother receivables.TheGroupmanages itsexposure tocredit riskby theapplicationofcreditapprovals,creditlimitsandmonitoringproceduresonanongoingbasis.Forotherfinancialassets(includingquotedinvestments,cashandbankbalancesandderivatives),theGroupminimisescreditriskbydealingexclusivelywithhighcreditratingcounterparties.

TheGroupestablishesanallowanceforimpairmentthatrepresentsitsestimateofincurredlossesinrespectofthetradeandotherreceivablesasappropriate.Themaincomponentsofthisallowanceare a specific loss component that relates to individually significant exposures, and a collectivelosscomponentestablishedforgroupsofsimilarassetsinrespectoflossesthathavebeenincurredbutnotyetidentified.Impairmentisestimatedbymanagementbasedonpriorexperienceandthecurrenteconomicenvironment.

Creditriskconcentrationprofile

TheGroup’smajorconcentrationofcreditriskrelatestotheamountsowingbythree(3)customerswhichconstitutedapproximately58%ofitstradereceivablesasattheendofthereportingperiod.

Exposuretocreditrisk

AstheGroupdoesnotholdanycollateral,themaximumexposuretocreditriskisrepresentedbythecarryingamountofthefinancialassetsasattheendofthereportingperiod.





(ii) Credit Risk (Cont’d)

Theexposureofcreditriskfortradereceivablesbygeographicalregionisasfollows:-


Malaysia 21,941 20,665 - - Singapore 8,648 5,440 - - Others 4,060 2,422 - -

34,649 28,527 - -

Ageinganalysis

TheageinganalysisoftheGroup’stradereceivablesasatendofthereportingperiodisasfollows:-

Gross Individual Carrying Amount Impairment Value THE GROUP RM’000 RM’000 RM’000

2013 Notpastdue 30,339 - 30,339 Pastdue: -lessthan3months 2,761 - 2,761 -3to6months 820 (33) 787 -over6months 774 (12) 762 34,694 (45) 34,649

2012 Notpastdue 25,347 - 25,347

Pastdue: -lessthan3months 2,724 - 2,724 -3to6months 443 - 443 -over6months 26 (13) 13

28,540 (13) 28,527





(ii) Credit Risk (Cont’d)

At theendof thereportingperiod, tradereceivables thatare individuallyimpairedwerethoseinsignificantfinancialdifficultiesandhavedefaultedonpayments.Thesereceivablesarenotsecuredbyanycollateralorcreditenhancement.

Trade receivables that are past due but not impaired

TheGroupbelievesthatnoimpairmentallowanceisnecessaryinrespectofthesetradereceivables.Theyaresubstantiallycompanieswithgoodcollectiontrackrecordandnorecenthistoryofdefault.

Trade receivables that are neither past due nor impaired

Asignificantportionoftradereceivablesthatareneitherpastduenorimpairedareregularcustomersthathavebeentransactingwith theGroup.TheGroupusesageinganalysis tomonitor thecreditqualityofthetradereceivables.Anyreceivableshavingsignificantbalancespastdueormorethan180days,whicharedeemedtohavehighercreditrisk,aremonitoredindividually.

(iii) Liquidity Risk

Liquidity risk arises mainly from general funding and business activities. The Group practisesprudent riskmanagementbymaintainingsufficientcashbalancesand theavailabilityof fundingthroughcertaincommittedcreditfacilities.

Thefollowingtablesetsoutthematurityprofileofthefinancialliabilitiesasattheendofthereportingperiodbasedoncontractualundiscountedcashflows(includinginterestpaymentscomputedusingcontractualratesor,iffloating,basedontheratesattheendofthereportingperiod):-

Weighted Average Contractual Effective Carrying Undiscounted Within 1 – 5 Rate Amount Cash Flows 1 Year Years THE GROUP % RM’000 RM’000 RM’000 RM,000

2013 Tradepayables - 2,734 2,734 2,734 - Otherpayablesandaccruals - 6,671 6,671 6,502 169 Dividendpayable - 3,200 3,200 3,200 - Bankers’acceptances 4.22- 5.19 24,124 24,124 24,124 -

36,729 36,729 36,560 169





(iii) Liquidity Risk (cont’d)

Weighted Average Contractual Effective Carrying Undiscounted Within 1 – 5 Rate Amount Cash Flows 1 Year Years THE GROUP % RM’000 RM’000 RM’000 RM,000

2012 Tradepayables - 1,857 1,857 1,857 - Otherpayablesandaccruals - 7,372 7,372 7,227 145 Bankers’acceptances 4.13- 4.86 20,813 20,813 20,813 -

30,042 30,042 29,897 145

Weighted Average Contractual Effective Carrying Undiscounted Within Rate Amount Cash Flows 1 Year THE COMPANY % RM’000 RM’000 RM’000

2013 Otherpayablesandaccruals - 81 81 81 Dividendpayable - 3,200 3,200 3,200

2012

Otherpayablesandaccruals - 152 152 152

(b) Capital Risk Management

TheGroupmanagesitscapitaltoensurethatentitieswithintheGroupwillbeabletomaintainanoptimalcapital structure so as to support their businesses andmaximise shareholders’ value. To achieve thisobjective, theGroupmaymake adjustments to the capital structure in view of changes in economicconditions, suchas adjusting theamountofdividendpayment, returningof capital to shareholdersorissuingnewshares.

TheGroupmanages its capital basedondebt-to-equity ratio.TheGroup’s strategieswereunchangedfromthepreviousfinancialyear.Thedebt-to-equityratioiscalculatedasnetdebtdividedbytotalequity.Netdebtiscalculatedasborrowingsplustradeandotherpayableslesscashandcashequivalents.

Thedebt-to-equityratiooftheGroupattheendofthereportingperiodisnotpresentedasitscashandcashequivalentsexceededthetotaldebts.




(b) Capital Risk Management (Cont’d)

UndertherequirementofBursaMalaysiaPracticeNoteNo.17/2005,theCompanyisrequiredtomaintainaconsolidatedshareholders’equity(totalequityattributabletoownersoftheCompany)equaltoornotlessthanthe25%oftheissuedandpaid-upsharecapitalandsuchshareholders’equityisnotlessthanRM40million.TheCompanyhascompliedwiththisrequirement.

(c) Classification Of Financial Instruments


Financial assets

Fairvaluethroughprofitandloss Short-terminvestment 10,000 7,000 10,000 7,000

Loansandreceivablesfinancialassets Tradereceivables 34,649 28,527 - - Otherreceivablesanddeposits 1,629 1,470 39 21 Amountowingbysubsidiaries - - 4,018 14,597 Depositswithfinancialinstitutions 27,234 16,950 15,430 8,600 Cashandbankbalances 4,126 5,956 91 150

67,638 52,903 19,578 23,368

Financial liabilities

Otherfinancialliabilities Bankers’acceptances 24,124 20,813 - - Tradepayables 2,734 1,857 - - Otherpayablesandaccruals 6,671 7,372 81 152 Dividendpayable 3,200 - 3,200 -

36,729 30,042 3,281 152




(d) Fair Values Of Financial Instruments Thecarryingamountsofthefinancialassetsandfinancialliabilitiesreportedinthefinancialstatements

approximatedtheirfairvalues:-

Thefollowingsummarisesthemethodsusedtodeterminethefairvaluesofthefinancialinstruments:-

(i) Thefinancialassetsandfinancialliabilitiesmaturingwithinthenext12monthsapproximatedtheirfairvaluesduetotherelativelyshort-termmaturityofthefinancialinstruments.

(e) Fair Values Hierarchy

Thefairvaluesofthefinancialassetsandliabilitiesareanalysedintolevel1to3asfollows:-

Level1: Fairvaluemeasurementsderivefromquotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities.

Level2: Fairvaluemeasurementsderivefrominputsotherthanquotedpricesincludedwithinlevel1thatareobservablefortheassetsorliability,eitherdirectlyorindirectly.

Level3: Fairvaluemeasurementsderivefromvaluationtechniquesthatincludeinputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs).

TheGrouphascarrieditsshort-terminvestmentthatisclassifiedasfairvaluethroughprofitorlossatits

fairvalue.ThisfinancialassetbelongstoLevel2ofthefairvaluehierarchy.



35. TRANSITION TO THE MFRS FRAMEWORK AsstatedinNote4.1tothefinancialstatements,thesearethefirstfinancialstatementsoftheGroupprepared

inaccordancewithMFRSs.TheaccountingpoliciesinNote5tothefinancialstatementshavebeenappliedtoallfinancialinformationcoveredunderthissetoffinancialstatements.

InpreparingtheopeningMFRSstatementsoffinancialpositionat1July2011(dateoftransition),theGrouphas adjusted amounts reported previously in financial statements prepared in accordance with FRSs. Thefinancialimpactsonthetransitionareasbelow:-

Reconciliationofequityasat1July2011

01/07/2011 FRS Transition effects MFRS RM’000 RM’000 RM’000

Equity:- Revaluationreserve (10,237) 10,237 - Retainedearnings (75,852) (10,237) (86,089)

Reconciliationofequityasat30June2012

30/06/2012 FRS Transition effects MFRS RM’000 RM’000 RM’000

Equity:- Revaluationreserve (10,237) 10,237 - Retainedearnings (78,614) (10,237) (88,851)

(a) PropertyandEquipment–Fairvalueasdeemedcosts

UnderFRSs, theGroupmeasured its freehold landandbuildingsat revaluedamount less impairmentlosses, if any. The revalued amount less impairment losses is deemed as fair value at the end of thereportingperiod.Thelastvaluationwascarriedin2011.UpontransitiontoMFRSs,theGroupelectedtousethefairvalueasdeemedcostunderMFRSs.Therewasnoimpacttothecarryingamountofthisasset.However,therevaluationreservesat1July2011and30June2012weretransferredtoretainedprofits.

Theaggregatefairvalueofthelandat3August2011wasdeterminedtobeapproximatelyRM25,200,000comparedtothecarryingamountofapproximatelyRM13,915,000underFRSs.



36. SUPPLEMENTARY INFORMATION – DISCLOSURE OF REALISED AND UNREALISED PROFITS/LOSSES

ThebreakdownoftheretainedprofitsoftheGroupandoftheCompanyasattheendofthereportingperiodinto realised and unrealised profits/(losses) are presented in accordancewith the directive issued byBursaMalaysiaSecuritiesBerhadandpreparedinaccordancewithGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosurePursuanttoBursaMalaysiaSecuritiesBerhadListingRequirements,asissuedbytheMalaysianInstituteofAccountants,asfollows:-


Totalretainedprofits -realised 96,568 82,667 3,851 5,132 -unrealised 10,610 10,535 - -

107,178 93,202 3,851 5,132 Less:Consolidatedadjustments (3,474) (4,351) - -

At30June 103,704 88,851 3,851 5,132


1) Share Buy-Backs

Therewasnosharebuy-backsbytheCompanyduringthefinancialyearended30June2013.

2) Options, Warrants or Convertible Securities

Therewerenooptions,warrantsorconvertiblesecuritiesissuedduringthefinancialyearended30June2013.

3) American Depository Receipt (ADR) or Global Depository Receipt (GDR) Programme

TheCompanydidnotsponsoranyADRorGDRprogrammeduringthefinancialyearended30June2013.

4) Sanctions and/or Penalties

Therewerenosanctionsand/orpenaltiesimposedontheCompanyanditssubsidiaries,Directorsormanagementbytherelevantregulatorybodiesduringthefinancialyear.

5) Non-Audit Fees

Therewerenonon-auditfeespaidtotheExternalAuditors,Messrs.CroweHorwathbytheGroupduringthefinancialyearunderreview.

6) Variation in Results

Therewerenovariationsof10%ormorebetweentheauditedresultsoftheGroupforthefinancialyearended30June2013andtheunauditedresultsannouncedon30August2013.

7) Material Contracts with Related Parties

TherewerenomaterialcontractsenteredintobytheCompanyanditssubsidiaries involvingdirectors’andmajor shareholders’ interestwhichwere still subsisting as at the endof thefinancial yearunder revieworwhichwereenteredintosincetheendofthepreviousfinancialyearexceptasdisclosedinnote29ofpage79oftheFinancialStatements.

8) Corporate Social Responsibility

TheGroup recognises its role as a responsible corporate citizen andno companycan exist bymaximizingshareholders value alone. In this regards, the needs and interests of other stakeholders are also taken intoconsideration.

a) Environment

TheGrouphasalwayscompliedwiththerelevantenvironmentallegislationandpromotingenvironmentalawareness as part of its commitment to protect the environment and contribute towards sustainabledevelopment.

ADDITIONAL COMPLIANCE INFORMATION


8) Corporate Social Responsibility (cont’d)

b) Safety and Health

TheGroup is committed to provide a safe andhealthyworking environment for all employeesundertherequirementsofHealth,SafetyandEnvironment(“HSE”).Weconstantlyensureasafeandhealthyworking environment and keep ourselves updated with the latest HSE requirements and regulationsthroughvarioustrainingprogrammes.

c) Charity Works and Donations to Charitable Organisations

The Company has made cash donations to Persatuan Kebajikan HOPE worldwide Kuala Lumpur,St. Nicholas’ Home Penang, Shelter Christian Fellowship For Aid and Welfare Selangor, MalaysiaAssociationforTheBlind,YayasanJantungMalaysiaandGraceCommunityServices.

d) Employees

TheGroupplacesstrongemphasisonpersonaldevelopmentandprovidesvarioustrainingcoursesforitsemployeestoenhanceandupgradetheirworkskillsforbetteropportunitiesofcareeradvancements.

9) Profit Forecast/Profit Guarantee

TheCompanydidnotprovideanyprofitforecast/guaranteeinanypublicdocumentsduringthefinancialyearended30June2013.

10) Revaluation Policy of Landed Properties

TheGroup’srevaluationpolicyinrespectofitsfreeholdlandandbuildingsistorevalueperiodically,atleastonce in every three tofiveyears. Surpluses arising from the revaluationof theproperties, net ofdeferredtaxation,whereapplicable,arecreditedtoarevaluationreserve.Deficitsarisingfromtherevaluation,totheextentthattheyarenotsupportedbyanypreviousrevaluationsurpluses,arechargedtothestatementsofprofitorlossandothercomprehensiveincome.

Additional Compliance Information (cont’d)


11) Recurrent Related Parties Transactions

Thebreakdownoftheaggregatevalueoftransactionsconductedduringthefinancialyearended30June2013isasfollows:

Transacting Related Amount of Companies Transacting Nature of Transaction within the Group Parties Transaction (RM’000)

SyarikatYoongOnn YoonFahRealty Rentalofproperty 370 SdnBhd(“SYOSB”) SdnBhd whichiscurrentlyused asSYOSB’soffice cumwarehouse SyarikatYoongOnn TheStore Supplyofhomelinen 5,609 SdnBhd Corporation products Berhad ElegantTotalHome TheStore Supplyofhomelinen 193 SdnBhd Corporation products Berhad

AttheforthcomingAnnualGeneralMeetingtobeheldon11December2013,theCompanyintendstoseekits shareholders’ approval for the proposed shareholders’ ratification and proposed shareholders’ mandateforrecurrentrelatedpartytransactionsofarevenueortradingnature,whicharenecessaryforitsday-to-dayoperationsandintheordinarycourseofbusiness,withrelatedparties.Thedetailsoftheproposedshareholders’ratificationandproposedshareholders’mandatetobesoughtissetoutintheCirculartoShareholdersdated18November2013.

Additional Compliance Information (cont’d)


Authorisedsharecapital : RM100,000,000Issuedandfullypaid-upcapital : RM80,000,000Classofshares : OrdinarysharesofRM0.50eachVotingrights : Onevoteperordinaryshare

ANALYSIS BY SIZE OF SHAREHOLDINGS

No.of %of No.of %ofSizeofHoldings Shareholders Shareholders Shareholdings IssuedCapital

Lessthan100 24 1.94 864 *100to1,000 460 37.25 143,266 0.091,001to10,000 403 32.63 2,014,122 1.2610,001to100,000 269 21.78 8,745,136 5.47100,001tolessthan5% 78 6.32 65,096,381 40.68ofissuedshares 5%andaboveofissuedshares 1 0.08 84,000,231 52.50

TOTAL 1,235 100.00 160,000,000 100.00

Note :*- negligible

SUBSTANTIAL SHAREHOLDERS

NameofShareholderDirectInterestIndirectInterest No.ofShares % No.ofShares % CasatexCosmoSdnBhd 84,000,231 52.50 - -ChewHonFoong - - 84,000,231 52.50(a)ChewHonKeong - - 84,000,231 52.50(a)ChewHonYoong - - 84,000,231 52.50(a)ChewHonYoon - - 84,000,231 52.50(a)

Note :(a) - Deemed interest by virtue of his direct interest in Casatex Cosmo Sdn Bhd pursuant to Section 6A of

CompaniesAct,1965.

DIRECTORS’ SHAREHOLDINGS

No. Directors DirectInterest % IndirectInterest % 1. DatukKamaludinBinYusoff 203,333 0.13 - -2. ChewHonFoong - - 84,000,231 52.50^3. ChewHonKeong - - 84,000,231 52.50^4. DatukHairuddinBinMohamed - - - -5. YeohChongKeng 144,000 0.09 - -6. LeeKimSeng 159,999 0.10 - -

Note :^-DeemedinterestbyvirtueofhisdirectinterestinCasatexCosmoSdnBhdpursuanttoSection6AofCompaniesAct,1965.

ANALYSIS OF SHAREHOLDINGSAs at 25 October 2013


THIRTY LARGEST SHAREHOLDERS AS PER THE RECORD OF DEPOSITORS

No. of % of IssuedNo. Name Shares Shares

1. CasatexCosmoSdnBhd 84,000,231 52.50%2. HLBNominees(Asing)SdnBhd 7,866,666 4.92% WangShouhu(CUST.SIN91144-4)3. LembagaTabungHaji 7,840,000 4.90%4. HSBCNominees(Asing)SdnBhd 6,997,700 4.37% ExemptANforCreditSuisse(SGBR-TST-ASING)5. ChanFookHong 5,333,333 3.33%6. JFAPEXNominees(Tempatan)SdnBhd 3,333,333 2.08% PledgedSecuritiesAccountforTanSriAbuSahidBinMohamed7. ChuahSengBoon 2,400,000 1.50%8. ChewSweeTee@ChewSweeLee 2,280,031 1.43%9. AMSECNominees(Tempatan)SdnBhd 1,751,566 1.09% AmtrusteeBerhadforPacificPearlFund(UT-PM-PPF) 10. ChowSiewSen 1,490,000 0.93%11. CheongSiewPark 1,473,000 0.92%12. KokFoongMeng 1,434,533 0.90%13. ChuahLingLing 1,433,533 0.90%14. ChuahSengHooi 1,418,133 0.89%15. NgYoongSang 1,333,333 0.83%16. LeeChaiHua 1,200,000 0.75%17. LeeMengYong 1,075,866 0.67%18. LeeChaiHua 693,333 0.43%19 ChanYokeKwan 666,666 0.42%20. HLBNominees(Tempatan)SdnBhd 666,666 0.42% PledgedSecuritiesAccountforTanSriAbuSahidBinMohamed21. DangCheeWai 533,333 0.33%22. AllianceGroupNominees(Tempatan)SdnBhd 528,100 0.33% PledgedSecuritiesAccountforLeeKongSim23. HSBCNominees(Asing)SdnBhd 500,000 0.31% ExemptANforCreditSuisseSecurities(Europe)Limited(CLTACN-TREATY)24 TanMingKian 500,000 0.31%25 LooLaiYoke 450,000 0.28%26. SunKienKeong 444,000 0.28%27 TehBeeGaik 430,000 0.27%28. ChoongKienYeong 400,000 0.25%29. MasterBoxManufacturingSdnBhd 400,000 0.25%30. TanPeng 400,000 0.25% Total 139,273,356 87.05%

Analysis of ShareholdingsAs at 25 October 2013 (cont’d)


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LIST OF GROUP PROPERTIES


NOTICEISHEREBYGIVENTHATtheSixthAnnualGeneralMeetingof theCompanywillbeheldatSpring1Room,NilaiSpringsGolf&CountryClub,PT4770,NilaiSprings,71800PutraNilai,NegeriSembilanDarulKhususonWednesday,11December2013at10.00a.m.forthefollowingpurposes:-

AGENDA

AS ORDINARY BUSINESS:

NOTICE OF ANNUAL GENERAL MEETING

1. ToreceivetheAuditedFinancialStatementsforthefinancialyearended30June2013togetherwiththeReportsoftheDirectorsandAuditorsthereon.

2. ToapprovethepaymentofDirectors’feeofRM156,000.00forthefinancialyearended30June2013.

3. Tore-electthefollowingDirectorswhoareretiringinaccordancewithArticle129oftheCompany’sArticlesofAssociation:

(a) DatukKamaludinBinYusoff (b) DatukHairuddinBinMohamed

4. To declare a final single tier dividend of 2.0 sen per ordinary share in respect of thefinancialyearended30June2013.

5. Tore-appointMessrs.CroweHorwathasAuditorsoftheCompanyfortheensuingyearandtoauthorisetheDirectorstofixtheirremuneration.

As Special Business :

Toconsiderandifthoughtfit,topassthefollowingOrdinaryResolutions:-

6 Authority to Issue Shares Pursuant to Section 132D of the Companies Act, 1965.

“ThatpursuanttoSection132DoftheCompaniesAct,1965,theArticlesofAssociationof the Company and subject to the approvals of the relevant governmental and/orregulatoryauthorities,theDirectorsbeandareherebyempoweredtoissuesharesintheCompany,atanytimetosuchpersonsanduponsuchtermsandconditionsandforsuchpurposesas theDirectorsmay, in theirabsolutediscretion,deemfit,providedthat theaggregatenumberofsharestobeissueddoesnotexceedtenpercent(10%)oftheissuedsharecapitaloftheCompanyforthetimebeingANDTHATtheDirectorsbeandarealsoempoweredtoobtaintheapprovalforthelistingofandquotationfortheadditionalsharessoissuedonBursaMalaysiaSecuritiesBerhad(“BursaSecurities”)ANDTHATsuch authority shall continue to be in force until the conclusion of the next AnnualGeneralMeetingoftheCompany.”

7. Proposed Renewal of Existing Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature

“That the mandate granted by the shareholders of the Company on 18 December2012pursuant toParagraph10.09of theMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad(“ListingRequirements”),authorisingtheCompanyanditssubsidiaries(“theYOCBGroup”)toenterintotherecurrentrelatedpartytransactionsofa revenueor tradingnaturewhicharenecessaryfor theYOCBGroup’sday-to-dayoperationsassetoutinSection2.5oftheCirculartoShareholdersdated18November2013withtherelatedpartiesmentionedtherein,beandisherebyrenewed(hereinafterreferredtoasthe“ProposedShareholders’Mandate”);

(Resolution 1)

(Resolution 2)

(Resolution 3)(Resolution 4)

(Resolution 5)

(Resolution 6)

(Resolution 7)

(Resolution 8)


ThattheProposedShareholders’Mandateissubjecttothefollowing:-

(a) thetransactionareintheordinarycourseofbusinessandareontermswhicharenotmorefavourabletotherelatedpartiesinvolvedthangenerallyavailabletothepublicandontermsnottodetrimentoftheminorityshareholdersoftheCompany;

(b) disclosure is made in the Annual Report of the aggregate value of transactionsconductedpursuanttotheProposedShareholders’Mandateduringthefinancialyearwhereaggregatevalue isequal toorexceeds theapplicableprescribed thresholdundertheListingRequirementsand/ortherelevantPracticeNotes;and

(c) annualrenewalandsuchapprovalshall,unlessrevokedorvariedbytheCompanyin a generalmeeting, continue in force until the conclusionof the nextAnnualGeneral Meeting of the Company or the expiration of the period within whichthenextAnnualGeneralMeeting is tobeheldpursuant toSection143(1)of theCompaniesAct,1965(butshallnotextendtosuchextensionsasmaybeallowedpursuanttoSection143(2)oftheCompaniesAct,1965),whicheverisearlier.

ANDTHATtheDirectorsoftheCompanybeandareauthorisedtocompleteanddoallactsandthings(includingexecutingallsuchdocumentsasmayberequired)astheymayconsiderexpedientornecessarytogiveeffecttotheProposedShareholders’Mandate.”

8. Proposed Renewal Authority for the Company to Purchase Its Own Shares of Up to Ten Percent (10%) of the Issued and Paid-Up Share Capital of the Company (“Proposed Share Buy-Back Authority”)

“THAT, subject to the provisions of Section 67A of the Companies Act, 1965, theMemorandumandArticlesofAssociationoftheCompany,PartIIIAoftheCompaniesRegulation 1966 and Chapter 12 of theMainMarket Listing Requirements of BursaSecurities,theCompanybeandisherebyauthorisedtopurchasesuchnumberofordinaryshares of RM0.50 each in the Company (“Proposed Share Buy-Back Authority”) asmaybedeterminedbytheDirectorsof theCompanyfromtimetotimethroughBursaSecuritiesuponsuchtermsandconditionsastheDirectorsmaydeemfitandexpedientintheinterestoftheCompanyprovidedthat:

(i) themaximumaggregatenumberofordinarysharespurchasedand/orheldby theCompanyastreasurysharesshallnotexceedtenpercent(10%)oftheissuedandpaidupordinarysharecapitaloftheCompanyatanypointintime;

(ii) the funds allocated by the Company for the purpose of purchasing its sharesshall not exceed the total retained profits and/or share premium account of theCompany.TheauditedretainedprofitsandsharepremiumoftheCompanystoodatRM3,851,000andRMnilrespectivelyasat30June2013;

(iii) theauthorityconferredbythisresolutionshallcontinuetobeinforceuntil:

(a) theconclusionofthenextAGMoftheCompanyfollowingtheforthcomingAGM, at which time the said authority will lapse, unless the authority isrenewedatthatmeeting,eitherunconditionallyorsubjecttoconditions;or

(b) theexpirationoftheperiodwithinwhichthenextAGMoftheCompanyisrequired tobeheldpursuant toSection143(1)of theCompaniesAct,1965(butshallnotextendtosuchextensionasmaybeallowedpursuanttoSection143(2)oftheCompaniesAct,1965);or

(c) revoked or varied by ordinary resolution passed by the shareholders in ageneralmeeting,

Notice of Annual General Meeting (cont’d)

(Resolution 9)


whicheveroccursfirst.

THATtheDirectorsoftheCompanybeandareherebyauthorisedtodealwiththesharespurchasedattheirabsolutediscretion,eitherpartiallyorfully,inthefollowingmanner:

(i) cancelallthesharessopurchased;

(ii) retainthesharessopurchasedastreasuryshares;

(iii) distributethetreasurysharesassharedividendstoshareholders;

(iv) resellthetreasurysharesonBursaSecuritiesinaccordancetotheMainMarketListingRequirementsofBursaSecurities;and

(v) anycombinationof(i),(ii),(iii)and(iv)above.

ANDTHATtheDirectorsoftheCompanybeandareherebyauthorisedtogiveeffecttotheProposedShareBuy-BackAuthoritywithfullpowertoassenttoanymodificationsand/oramendmentsasmayberequiredbytherelevantauthorities.”

9. Totransactanyotherbusinessforwhichduenoticeshallhavebeengiven.

NOTICE OF DIVIDEND ENTITLEMENT

NOTICE IS ALSO HEREBY GIVENthatafinalsingletierdividendof2.0senpershareforthefinancialyearended30June2013,ifapprovedintheSixthAnnualGeneralMeeting,willbepaidon23January2014toDepositorswhosenamesappearintheRecordofDepositorson6January2014.

ADepositorshallqualifyforentitlementtothedividendonlyinrespectof:

(a) Share transferred to theDepositor’s SecuritiesAccount before 5.00 p.m. on 6 January 2014 in respect ofordinarytransfers;and

(b) SharesboughtonBursaMalaysiaSecuritiesBerhadonthecumentitlementbasisaccordingtoRulesoftheBursaMalaysiaSecuritiesBerhad.

ByOrderoftheBoard

Dato’TangSweeGuan(MIA5393)Secretary

KualaLumpur18November2013



Notes:

(i) A member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy/proxies who need not be a member/members of the Company, an advocate, an approved Company auditor, or a person approved by the Registrar to attend and vote in his/her stead.

(ii) A member may appoint not more than two (2) proxies to attend the same meeting. Where a member appoints two proxies, the proxies shall not be valid unless the member specifies the proportion of his shareholding to be represented by each proxy. Where a member of the Company is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, it may appoint at least one proxy in respect of each securities account.

(iii) The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly authorised in writing, or if the appointor is a corporation, either under its common seal or the hand of its officer or its duly authorised attorney.

(iv) The instrument appointing a proxy shall be deposited at the Registered Office of the Company at Suite 13A.01(A), Level 13A, Wisma Goldhill, 67 Jalan Raja Chulan, 50200 Kuala Lumpur not less than forty-eight (48) hours before the time for holding the meeting or at any adjournment thereof.

Explanatory Note on Special Business

Authority to Issue Shares Pursuant to Section 132D of the Companies Act, 1965

TheproposedOrdinaryResolution7,ifpassed,willgrantageneralmandateandempowertheDirectorstoissuesharesuptoanaggregateamountnotexceeding10%oftheissuedandpaid-upsharecapitaloftheCompanyforthetimebeing,forsuchpurposesastheDirectorsconsiderwouldbeinthebestinterestoftheCompanywithouthavingtoconveneseparategeneralmeetings.Thisauthority,unlessrevokedorvariedatageneralmeeting,willexpireattheconclusionofthenextAnnualGeneralMeeting.

ThisgeneralmandateisnewandwillprovideflexibilitytotheCompanyforanypossiblefundraisingactivities,includingbutnotlimitedtofurtherplacementofsharesforpurposeoffundingfutureinvestment,workingcapitaland/oracquisitions.

Proposed Renewal of Existing Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature

TheproposedOrdinaryResolution8,ifpassed,willenabletheCompanyanditssubsidiariestoenterintorecurrentrelatedpartytransactionsofarevenueortradingnaturewhicharenecessaryforitsday-to-dayoperationsandwilleliminate the need to convene separate generalmeeting from time to time to seek shareholders’ approval. Thiswillsubstantiallyreduceadministrative time, inconvenienceandexpensesassociatedwith theconveningofsuchmeetings,withoutcompromisingthecorporateobjectivesoftheYOCBGrouporadverselyaffectingthebusinessopportunitiesavailabletotheYOCBGroup.

The detailed information on recurrent related party transactions is set out in theCircular to Shareholders dated18November2013whichisdespatchedtogetherwiththisAnnualReport.

Proposed Renewal of Authority for the Company to Purchase Its Own Shares Up to Ten Percent (10%) of the Issued and Paid-Up Share Capital of the Company (“Proposed Share Buy-Back Authority”)

TheproposedOrdinaryResolution9,ifpassed,willempowertheDirectorstopurchasetheCompany’ssharesofupto10%oftheissuedandpaid-upsharecapitaloftheCompanyatanypointintime,byutilisingthefundsallocatedwhichshallnotexceedthetotalretainsprofitsandsharepremiumoftheCompany.Thisauthority,unlessrevokedorvariedatageneralmeeting,willexpireattheconclusionofthenextAnnualGeneralMeeting.

PleaserefertotheCirculartoShareholdersdated18November2013forfurtherinformation.



DetailsofDirectorsStandingforRe-Election

Directorswhoarestandingforre-electionattheSixthAnnualGeneralMeetingofYoongOnnCorporationBerhad:-

(i) TheDirectorretiringpursuanttoArticle129oftheCompany’sArticlesofAssociation:-

(a) DatukKamaludinBinYusoff (b) DatukHairuddinBinMohamed

FurtherdetailsoftheaboveDirectorsaresetoutintheDirectors’Profileonpage12and13ofthisAnnualReport.

STATEMENT ACCOMPANYING NOTICE OF ANNUAL GENERAL MEETING

FORM OF PROXY

Number of Shares Held

Proxies % of sharesProxy 1 Proxy 2 Total 100%

No. Resolutions For Against1. To receive the Audited Financial Statements2. To approve the payment of Directors’ fees3. To re-elect Datuk Kamaludin Bin Yusoff as Director4. To re-elect Datuk Hairuddin Bin Mohamed as Director5. To declare a final single tier dividend of 2.0 sen per ordinary share in respect of the

financial year ended 30 June 20136. To re-appoint Crowe Horwath as Auditors of the Company

Authority to issue shares pursuant to Section 132D of the Companies Act, 1965

Special business 7. 8. To approve the Proposed Renewal of Existing Shareholders’ Mandate for recurrent

related party transactions of a revenue or trading nature

9. To approve the Renewal of Authority for the purchase by the Company of up to Ten Percent (10%) to its own issued and paid-up capital

Signed this day of , 2013

Signature of Shareholder

*Strike out whichever not applicable

I/We of

of

or failing him/her,

of

My/our proxy/proxies is/are to vote as indicated below:

being a member(s) of Yoong Onn Corporation Berhad hereby

or failing him/her, *the Chairman of the Meeting as my/our proxy(ies), to vote for me/us on my/our behalf at the Sixth Annual General Meeting of the Company to be held at Spring 1 Room, Nilai Springs Golf & Country Club, PT 4770, Nilai Springs, 71800 Putra Nilai, Negeri Sembilan Darul Khusus on Wednesday, 11 December 2013 at 10.00 a.m. and at any adjournment thereof.

(Please indicate with an “X” in the appropriate boxes on how you wish your vote to be cast. If no specific direction as to voting is given, the proxy will vote or abstain at his discretion.)

For appointment of two proxies, the shareholdings to be represented by the proxies

Yoong Onn Corporation Berhad

The Company Secretary

Suite 13A.01 (A),Level 13A Wisma Goldhill

67 Jalan Raja Chulan50200 Kuala Lumpur

please fold here

please fold here

Affix Stamp

Notes:

(i) A member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy/proxies who need not be a member/members of the Company, an advocate, an approved Company auditor, or a person approved by the Registrar to attend and vote in his/her stead.

(ii) A member may appoint not more than two (2) proxies to attend the same meeting. Where a member appoints two proxies, the proxies shall not be valid unless the member specifies the proportion of his shareholding to be represented by each proxy. Where a member of the Company is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, it may appoint at least one proxy in respect of each securities account.

(iii) The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly authorised in writing, or if the appointor is a corporation, either under its common seal or the hand of its officer or its duly authorised attorney.

(iv) The instrument appointing a proxy shall be deposited at the Registered Office of the Company at Suite 13A.01(A), Level 13A, Wisma Goldhill, 67 Jalan Raja Chulan, 50200 Kuala Lumpur not less than forty-eight (48) hours before the time for holding the meeting or at any adjournment thereof.

an

nu

al re

po

rt 20

13

annual report 2013

annual report 2013 jalan raja chulan 50200 kuala lumpur tel: (603) 2032 2895 fax: (603) 2032 2893...

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