cover rationale - weida · ended (“fye”) 31 march 2016. financial highlights fye 31 march 2016...

FINANCIAL STATEMENTS

COVER RATIONALE

TABLE OF CONTENTS

01 Corporate Pro le02 Corporate Information03 Group Structure 04 Profile of Directors

07 Chairman’s Statement12 Business Activities22 Five Years Group Financial Highlights

WEIDA continues to thrive through its four (4) main business divisions, driven by the principle of triple bottom line of profit, people and environment to achieve a balanced and sustainable growth.

23 Statement on Corporate Social Responsibility25 Corporate Governance Statement35 Additional Compliance Information37 Statement of Directors’ Responsibilities38 Report of the Audit Committee46 Statement on Risk Management and Internal Control

50 Directors’ Report54 Statement by Directors54 Statutory Declaration55 Independent Auditors’ Report57 Statements of Financial Position58 Statements of Profit or Loss and Other Comprehensive Income60 Consolidated Statement of Changes in Equity64 Statement of Changes in Equity65 Statements of Cash Flows68 Notes to the Financial Statements156 List of Properties157 Analysis of Shareholdings159 Notice of Seventeenth Annual General Meeting161 Notice of Dividend Entitlement and Payment162 APPENDIX A Form of Proxy

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CORPORATE PROFILE

Weida (M) Bhd.(“WEIDA”) is an established and group of companies. It is listed on the Main Market of Bursa Malaysia Securities Berhad, the Malaysian Stock Exchange since 2001.

Founded in 1983, WEIDA today has about 1,000 professionals and support personnel working from 11 and plants in Malaysia and Republic of The Philippines.

WEIDA pursues A Balanced and Sustainable Growth through its four (4) business divisions:

1. Manufacturing & marketing

2. Environmental engineering services & others

3. Works

4. Property development

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CORPORATE INFORMATION

DIRECTORS

YBhg. Dato’ Lee Choon Chin Group Executive Chairman

Jee Hon Chong Executive Director

Chew Chin ChoongExecutive Director

Yeoh Chin HoeSenior Independent Director

COMPANY SECRETARIES

Voon Jan Moi (MAICSA 7021367)Wang Tin Ngee (MIA 11670)

AUDITORS

KPMGLevel 6, Westmoore HouseTwin Tower CentreRock Road93200 Kuching, SarawakTel : +6082 422 699 Fax : +6082 422 399

SHARE REGISTRAR

Symphony Share Registrars Sdn BhdLevel 6, Symphony HouseBlock D13, Pusat Dagangan Dana 1Jalan PJU 1A/4647301 Petaling JayaSelangor Darul EhsanTel : +603 7841 8000 Fax : +603 7841 8152E-mail : [email protected]

Lee Pet LoiIndependent Director

YBhg. Dato’ Jamelah Binti JamaluddinIndependent Director

Liew Jee Min @ Chong Jee MinIndependent Director

REGISTERED OFFICE

Wisma Hock Peng, Ground Floor to 2nd Floor123, Green Heights, Jalan Lapangan Terbang93250 Kuching, SarawakTel : +6082 456 456Fax : +6082 459 000E-mail : [email protected]

COUNTRY OF INCORPORATION AND DOMICILE

Malaysia

STOCK EXCHANGE LISTING

Main Market of Bursa Malaysia Securities BerhadStock Name : WEIDAStock Code : 7111

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GROUP STRUCTURE

ENVIRONMENTAL ENGINEERINGSERVICES & OTHERS

Weida Environmental TechnologySdn. Bhd.

Sar -Alam Indah Sdn. Bhd.

Blast Power Sdn. Bhd.

WORKSWeida Works

Sdn. Bhd.

Weida Communications Sdn. Bhd.

Vista Cape Sdn. Bhd.

Weida Environmental TechnologySdn. Bhd.

LIPP Biogas (Malaysia) Sdn. Bhd.

Hydro Solutions Sdn. Bhd.

Weida Medic Development Sdn. Bhd.

PROPERTY DEVELOPMENTWeida Properties Sdn. Bhd.

Loyal Paragon Sdn. Bhd.

Good Axis Sdn. Bhd.

Atlas Arrow Sdn. Bhd.

MANUFACTURING & MARKETING

Greenyard Corporation Sdn. Bhd.

Weida Resources Sdn. Bhd.

Weida Marketing Sdn. Bhd.

Weida Manufacturing and MarketingSdn. Bhd.

Weida Green Industries Sdn. Bhd.

Weida Eco Rubber Sdn. Bhd.

Weida (B) Sdn. Bhd.

Weida International Sdn. Bhd.

Weida Philippines Inc.

Weida Integrated Industries Sdn. Bhd.

Premium Fortune Sdn. Bhd.

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PROFILE OF DIRECTORS

YBHG. DATO’ LEE CHOON CHINGroup Executive Chairman

YBhg. Dato’ Lee Choon Chin (Malaysian, aged 62), the Group Executive Chairman, was appointed to the Board as Group Managing Director on 25 October 2000.

YBhg. Dato’ graduated with a Degree of Bachelor of Science with Honours from

of 3M (Malaysia) Sdn. Bhd., an American multinational company. Upon leaving 3M in 1983, he incorporated WEIDA which became the WEIDA Group of today. As a founding shareholder, YBhg. Dato’ actively continues to lead the Group, and was re-designated as Group Executive Chairman on 11 August 2015. He is also the Chairman of Risk Management Committee.

CHEW CHIN CHOONGExecutive Director

Mr. Chew Chin Choong (Malaysian, aged 47) was appointed to the Board as an Executive Director on 27 November 2001. He is a member of Risk Management Committee. He is an economics graduate holding a Bachelor of Science (Economics) Honours degree from the London School of Economics and Political Science and a Chartered Accountant with the Institute of Chartered Accountants in England and Wales.

accounting functions in public listed companies and international accounting

JEE HON CHONGExecutive Director

Mr. Jee Hon Chong (Malaysian, aged 57) was appointed to the Board as an Executive Director on 25 October 2000. He graduated from Tunku Abdul Rahman College and subsequently obtained his degree in Mechanical Engineering from the Engineering Council, United Kingdom.

WEIDA commenced manufacturing operations in Kuching in 1988. Subsequently, he successfully commissioned another two (2) factories in Kota Kinabalu and Nilai, which marked the entry of WEIDA into Sabah and Peninsular Malaysia, and later

manufacturing plant abroad.

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YEOH CHIN HOESenior Independent Director

Mr. Yeoh Chin Hoe (Malaysian, aged 65) was appointed to the Board as an Independent Director of the Company on 1 January 2008. He is the Chairman of Audit Committee, Nominating Committee and Remuneration Committee; and a member of Risk Management Committee. He is also the Senior Independent Director to whom concerns regarding the Company may be conveyed.

(UK) and Institute of Chartered Secretaries and Administrators (UK), a member of

of Accountants. He also obtained a Master degree in Business Administration (General Management) from Universiti Putra Malaysia in 1997.

Mr. Yeoh joined Harrisons Trading (Peninsular) Sdn. Bhd. in 1980, and was appointed as Finance Director in 1990 and subsequently Managing Director in 1997 until he

Corptall Consulting Sdn. Bhd. in 2006, as a consultant specialising in business process improvements and general business management services.

Mr. Yeoh is also an Independent Director and the Chairman of the Audit Committee of Voir Holdings Berhad and Chin Hin Group Berhad.

LEE PET LOIIndependent Director

Mr. Lee Pet Loi (Malaysian, aged 60) was appointed to the Board as an Independent Director of the Company on 16 December 2013. He is a member of Audit Committee, Nominating Committee and Remuneration Committee.

Mr. Lee graduated from Brunel University, London with Bachelor of Science (Mathematics) Honours degree. He is also a Chartered Mathematician and a member of The Institute of Mathematics and its Applications (MIMA).

Mr. Lee started his career in HSBC Bank Malaysia Berhad (“HSBC”) as a Resident

various positions in HSBC for 29 years. He retired as a Senior Vice President, Commercial Banking in 2010.


YBHG. DATO’ JAMELAH BINTI JAMALUDDINIndependent Director

YBhg. Dato’ Jamelah Binti Jamaluddin (Malaysian, aged 59) was appointed to the Board as an Independent Director of the Company on 9 January 2015. She is a member of Nominating Committee and Remuneration Committee.

YBhg. Dato’ Jamelah holds a Masters in Business Administration from Central Michigan University, USA and a Bachelor of Business Administration in Finance from Western Michigan University, USA.

YBhg. Dato’ Jamelah was appointed as the Managing Director of Kuwait Finance House (Malaysia) Labuan Berhad from March 2013 to September 2013 and Chief

February 2010 to March 2013. She served RHB Islamic Bank Berhad as Managing Director from August 2007 to January 2010. Her previous working experience includes:

(1) Deputy CEO – Kuwait Finance House (Malaysia) Berhad from November 2006 to August 2007.

2004 to November 2006.

Macquarie Bank Limited (Labuan Branch) from August 1999 to November 2003.

Presently, she is the Executive Chairman of 3P Capital Partners Sdn. Bhd. She also sits on the Boards of Scomi Energy Services Berhad, Kumpulan Jetson Berhad, Small Medium Enterprise Development Bank Malaysia Berhad, Edra Global Energy Berhad and PMB Tijari Berhad.

LIEW JEE MIN @ CHONG JEE MINIndependent Director

Mr. Liew Jee Min @ Chong Jee Min (Malaysian, aged 57) was appointed to the Board as an Independent Director on 3 July 2015. He is a member of Audit Committee and Risk Management Committee.

Mr. Chong is an accomplished lawyer, as well as an experienced director of public listed companies. He graduated from University of Leeds, England, in 1984 with an

law, concentrating on banking, property and corporate matters since 1986.

Industry, the Chairman of the Legal Affairs Committee of Klang Chinese Chamber

Industry of Coastal Selangor, the Deputy Chairman of the Legal Affairs Committee

Industry of Malaysia, and a legal advisor of Malaysia Used Vehicle Autoparts Traders’

Sekolah Menengah Chung Hua (PSDN) Klang.

Mr. Chong is also an Independent Director of Jaks Resources Berhad, Lion Industries Corporation Berhad, YKGI Holdings Berhad and Sunsuria Berhad.

Notes:(a) The Directors have no family relationship with each other or the major shareholders of the Company, except for YBhg.

Dato’ Lee Choon Chin, whose spouse is one (1) of the major shareholders of the Company.(b) None of the Directors have convicted any offences for the last ten (10) years.

(d None of the Directors have any other directorship of public companies except for YBhg. Dato’ Jamelah Binti Jamaluddin, Mr. Yeoh Chin Hoe and Mr. Chong Jee Min.

page 30 of this Annual Report.

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CHAIRMAN’S STATEMENT

Salam 1Malaysia,

On behalf of the Board of Directors (“the Board”) of Weida (M) Bhd. (“the Company”), I take great pleasure in presenting to you the Annual Report and Financial Statements of the Company and

ended (“FYE”) 31 March 2016.

FINANCIAL HIGHLIGHTS

FYE 31 March 2016 was the fifteenth (15th) year of Weida (M) Bhd. as a public listed company. We were listed in February 2001.

Once again, we are happy to report to you that FYE 31 March 2016 turned out to be another year of respectable financial achievements where the Group recorded a turnover of RM384.3 million and profit before tax of RM42.5 million.

The Group’s financial position also remains very healthy as at 31 March 2016, with total equity attributable to owners of the Company of RM400.6 million, and cash of RM98.5 million. Due to the Group’s relatively low borrowings, WEIDA is currently in a net cash position, with net assets per ordinary share of RM3.16 as at 31 March 2016.

On this note, we are pleased to present to you some key financial statistics for FYE 31 March 2016, as follows:

2015 to RM400.6 million as at 31 March 2016; and

went up from RM2.99 as at 31 March 2015 to RM3.16 as at 31 March 2016.

DIVIDENDS

WEIDA is committed to deliver shareholder value through a balanced approach in the distribution of dividends, taking into account opportunities to reinvest profits to enhance earnings growth and the need to pay dividends to shareholders.

In view of the positive performance of the Group, the Board has recommended a first and final single-tier exempt dividend of 3.00 sen per ordinary share for FYE 31 March 2016, representing a 14.6% distribution of the Group’s net earnings per share of 20.51 sen, and translating into a dividend yield of 1.7% (based on the closing share price of RM1.78 on 31 March 2016). The Board believes that this is an appropriate distribution ratio, given the needs to fund the continuing expansion of the Group.

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OPERATIONS REVIEW

According to The World Bank, global growth slowed to 2.4% in 2015. Against this global backdrop, the Malaysian economy recorded a respectable growth rate of 5.0% in 2015 and 4.2% for the first quarter of 2016, albeit down from 6.0% in 2014 and 4.5% in the last quarter of 2015. This was attained amid a challenging economic environment, including declining commodity prices and high financial markets volatility, although supported by the continued expansion of domestic demand.

We are pleased to report that the Group’s profit margin before tax improved to 11.1% for FYE 31 March 2016 on the back of a higher turnover of RM384.3 million, compared to 8.7% for the previous financial year with a corresponding turnover of RM333.8 million, in spite of higher interest rates, continued cooling of the property market, and the imposition of the Goods and Services Tax (“GST”) since 1 April 2015.

Since pioneering the industry of polyethylene–based building materials manufacturing more than a quarter of a century ago, WEIDA has remained as the undisputed market leader in Malaysia, with a dominant position in East Malaysia. Growing strongly into the 21st century as a manufacturer for water and wastewater engineering, WEIDA is a leading provider of modern environmental engineering products and solutions in the areas of water and wastewater infrastructures, products and services for both urban and rural applications.

The Group has a full presence nationwide with five (5) manufacturing plants strategically located in Nilai, Kuching, Kota Kinabalu, Miri and Tawau; plus one (1) in Manila. The barriers of entry into this industry are high: substantial capital investment, intensive research and development programmes, and specialist technological expertise developed in-house over the years. This industry is generally capital intensive for big scale manufacturers. The main industry players have generally remained unchanged during the financial year under review.

Despite the challenging economic situation, WEIDA’s manufacturing segment continues to deliver positive results. This was achieved through supply of our products to sizable projects implemented by the Malaysian Government (“the Government”) which includes provision of filtered water to the rural population, provision of affordable homes, setting up of universities and educational institutions, provision of better roads, jetties and landscaped recreational parks, agriculture and aquaculture projects. The manufacturing segment achieved total revenue of RM191.8 million for FYE 31 March 2016 versus RM181.4 million for the previous financial year.

WEIDA’s engagement in the management, operations and maintenance of three (3) septic sludge treatment plants in Kuching, Sibu and Miri is on-going.

Having designed-and-built the Integrated Centralised Livestock Farming in Sarawak, WEIDA has also been tasked to operate it, as an extension of our operations and maintenance services.

As for our telecommunication infrastructure business, we have built 244 towers, which are maintained and rented out to the service providers (Maxis, Digi and Celcom) on a long-term basis.

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Over the years, WEIDA has established itself as one of the leading turnkey builders of telecommunication towers in Sabah and Sarawak.

Since the Group’s venture into this business segment, WEIDA has successfully completed and handed over 434 telecommunication towers.

The telecommunication network industry is fast growing with constant upgrades in order to keep up with escalating network coverage and on-going technological advancements. The Government is currently building approximately 1,000 units of telecommunication towers in various phases over a period of three (3) years throughout Malaysia funded by an announced budget of about RM1.5 billion. We are currently constructing nearly 100 of these towers, the bulk of which has been completed and handed over during the financial year under review.

Construction of Urbana Residences peaked during the financial year under review; major emphasis was put into delivering a good build-quality, connecting with buyers, and enhancing the capabilities of our team, and the project is on track for completion and handover by October 2016.

The joint venture with Pacific Mutiara Sdn. Bhd. to jointly develop two (2) parcels of land in Cheras is currently at the planning stage of development. Initial estimate of the gross development value (“GDV”) is around RM1.2 billion.

Planning and design works are completed on a development project called Ardena located in Mont’ Kiara with an estimated GDV of RM360.0 million. Final refinement to suit the current trend and demand is in progress.

In view of the generally quiet property market currently prevailing, we will await a more opportune time for the launching of these projects.

For FYE 31 March 2016, the property development segment recognised revenue of RM86.8 million from Urbana Residences.

PROSPECTS

Notwithstanding the challenging backdrop globally and domestically, the Government estimates a GDP growth of 4.0% to 4.5% in 2016, driven by implementation of the Government infrastructure development projects under the Eleventh Malaysian Plan (“11th MP”) and sustained by private sector spending.

The prospects and business opportunities for WEIDA arising from the various development plans had been highlighted and discussed in some detail in this Statement in the past five (5) years’ Annual Reports, and remain valid and applicable going forward.

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In particular, for Sarawak and Sabah where the Group has a strong operational presence, there has been tremendous development emphasis being given, such as continuing to develop rural water supply, sanitation, telecommunication and other public infrastructure such as roads, hospitals, etc. The 11th MP’s disproportionate focus on the rakyat, in particular the building of affordable homes by various government agencies will lead to sustained demand for polyethylene water tanks, septic tanks and pipes manufactured by WEIDA, while a growing middle class holds promise for our property development division.

Increased demand from the public for enhancement in connectivity in urban, suburban and rural areas gives rise to opportunities for further building of telecommunication towers, and possible ventures into small cell telecommunication towers.

Construction of the RM28.0 billion Pan Borneo Highway spanning the lengths of Sarawak and Sabah is expected to offer attractive markets for WEIDA’s products, including products for public utilities along the highway, such as water pipelines, electrical power conduits, telecom conduits and towers, drainage culverts, etc. Upon opening up subsequently, it will spin-off many new residential, commercial, and industrial developments in both states where WEIDA is the dominant manufacturer of polyethylene engineering products for water and wastewater applications.

Our polyethylene culverts are increasingly being accepted by both the government sector in road construction projects, and the private sector especially oil palm plantations for drainage infrastructure.

Under rural water, we will continue to supply and install rainwater harvesting with filtration systems in financial year ending 31 March 2017. A new system which will be able to resolve certain technical constraints will be introduced to the market.

WEIDA will continue to strive for breakthroughs in terms of new and innovative products and systems, manufacturing processes, as well as market and business alliances.

The volatility of the Malaysian Ringgit and increasing cost of funds will pose a challenge to the profit margins of our manufactured products. However, we expect to be able to contain the effects with increased sales volume and various cost rationalisation processes.

On the property development front, the tightening of bank lending and weak economy has resulted in a consolidating market.

As such, WEIDA is therefore taking a cautious approach with regards to the timing and launching of our other projects in the pipeline while preparing ourselves for the future with further development plans.


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ACKNOWLEDGEMENTS

On behalf of the Board, we would like to place on record our appreciation to our customers and shareholders for their support, without which our Group would not have been strong and successful.

We would also like to thank our associates, financiers, advisors, suppliers and sub-contractors for their continuing confidence and support to the Group.

Finally, the Board and I wish to thank the management and all employees of the Group for their unwavering commitment, contribution and hard work.

YBhg. Dato’ Lee Choon ChinGroup Executive Chairman

20 June 2016

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report contains forward-looking statements that are based on management’s estimates, assumptions and projections at the time of publication. These statements reflect our current views and expectations with respect to future events and are subject to risks and uncertainties and hence are not guarantees of future performance. Some factors include, but are not limited to, changes in general economic and business conditions, exchange rates and competitive activities that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.

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BUSINESS ACTIVITIES

MANUFACTURING & MARKETING

OverviewWEIDA is the leading manufacturer of high density

polyethylene engineering (“HDPE”) products in Malaysia. Being

a one-stop solutions provider in the water, wastewater and

environmental sectors, we provide end-to-end engineering

infrastructure products to cater to the growing demands for

premium HDPE products.

WEIDA has manufacturing facilities that span over 120,000

square metres. Our products are designed and manufactured

in compliance with Malaysia and international standards,

performance criteria.

are assurances that our products are of the highest standards

and meet the stringent requirements of the markets we

serve.

Having invested intensively in research and development

activities, we have developed proprietary technologies in the

manufacturing of large tanks and pipes, mould design and

fabrications, material formulation and compounding as well

as HDPE welding and fabrications. To stay connected with

the technological development of the manufacturing

industry, WEIDA established and maintains strong

partnership with international manufacturing technology

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Product Brand Names

of The Philippines using proprietary technology spearheaded by our research and development unit and a team of engineers

MANUFACTURING & MARKETING (CONTINUED)

BUSINESS ACTIVITIES

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Applications of WEIDA Products

WATER INFRASTRUCTURE

Water Storage Systems

Utilising advanced rotational moulding processes that

produces single-piece and seamless product, WEIDA’s

water storage tanks are leak proof, durable and resistant

to corrosion. These engineering-grade HDPE tanks such as

our POLYSTOR®, POLYCHEM®, RAINSAVER® and AQUASTOR

are available in a wide range of sizes and capacities, for

use in commercial, industrial and municipal water storage

applications as well as chemical storage and rainwater

harvesting.

Potable Water Distribution Network

WEIDA provides engineering-grade piping solutions for

the distribution of potable water and supplies a wide

technical assistance in pipeline design, pipe laying as well

as installation and welding works. WEIDALINE® HDPE pipes

ultraviolet rays and impact. These distinct attributes give

it prominent advantages over conventional metal and

concrete pipes, making it an ideal choice for applications into

water distribution, gas pipelines, cable conduits as well as

irrigations and other agricultural applications.


Stormwater Tanks and Drainage Systems

WEIDA is the leading manufacturer for underground

drainage pipe systems for subsoil, storm drains and culverts

applications. Manufactured using the extrusion-winding

technology, the triple-walled FLOLINE-3W® culverts are of the

in Malaysia, making them suitable to be used as road culverts

by Jabatan Kerja Raya. Coupled with prefabricated FLOLINE-

3W® Flapgates, the strong yet lightweight properties of

FLOLINE-3W® pipe systems are the ideal choice as culverts

WEIDALINE® single and double wall corrugated HDPE pipes

detention tank systems in urban stormwater management to

BUSINESS ACTIVITIES

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WASTEWATER INFRASTRUCTURE

Wastewater Treatment

Focused on countering pollution and protecting our local water resources, WEIDA has over 20 years of experience in developing and providing a full spectrum of expertise in wastewater treatment solutions through planning, engineering construction, operation and maintenance, to process optimisation of various types of wastewater treatment systems, including conventional activated sludge (“CAS”) process, extended aeration (“EA”) process, biological nutrient removal (“BNR”) process and the membrane bioreactor (“MBR”) process.

WEIDA is the largest septic tank manufacturer in Malaysia,

domestic and commercial applications. The ECOSEPT® septic tanks, WEIDA’s premium grade HDPE single-piece moulded tanks are suitable for domestic sewerage application as it is

WEIDA is the market leader in the supply of prefabricated modular sewage treatment plants (“STP”), suitable for decentralised treatment systems by employing the EA process. ECOPASS® Small Sewage Treatment Systems are fast to install, durable and reliable, making them suitable for applications into housing estates, schools and government buildings.

Applications of WEIDA Products (CONTINUED)


Sewer Network

Ensuring efficient and safe transfer of wastewater from

residential and commercial establishments to a wastewater

treatment plant is a heavy responsibility that WEIDA takes on

with pride. WEIDA® Double Wall Corrugated HDPE pipes are

ideal for underground or above ground gravity and low

pressure applications in the civil works and waste

management sectors as they are highly resistant to the

chemical corrosions from soils and sewage effluents with

extreme pH levels.

WEIDA as a diversified solutions provider has taken up various

projects that introduce modern technology to the rural

communities of Malaysia, notably in Sabah and Sarawak. We

offer the basic necessities to these communities such as clean

water source, electricity as well as improved sanitation

system.

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WASTEWATER INFRASTRUCTURE (CONTINUED)

Water Treatment

Apart from offering specially designed water treatment

solutions, our comprehensive services ensure that these

solutions are feasible for the different needs of the rural

projects. Each project will undergo the survey, design,

installation and construction, commissioning, maintenance

and management phases to ensure that the specific

requirements of each project are catered for solutions such as

the rainwater harvesting system, groundwater supply

systems, conventional water treatment systems as well as

state-of-the-art membrane filtration systems can be delivered

and implemented as individual systems or fully integrated

into one comprehensive solution.

To date, WEIDA has successfully delivered rainwater

harvesting systems for rural schools and villages throughout

Sabah and Sarawak as well as undertaken and completed

several rural water supply projects on design-and-build basis. Rural Sanitation

Most of the rural kampong in Sabah and Sarawak do not have

any form of sanitation facilities. The most economical means

of sanitation or treatment of human waste is through the

provision of septic tanks.

Over the years, WEIDA has supplied thousands of septic tanks

to the interior of Sabah and Sarawak. The provision of septic

tanks for the treatment of human waste will impact the

quality of life and health of the community by reducing cases

of water-borne diseases such as typhoid and cholera which

are associated with polluted drinking water.

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SARAPEG

Aligned with our continual pursuance of a balanced &

sustainable growth, WEIDA is honored to be chosen by the

Sarawak State Government (”State”) to manufacture and

supply Sarapeg, an innovative transformation of survey peg

made of HDPE material to replace Belian wood through an

agreement signed on 16 November 2015. The signing not

only marked the beginning of the production of this

State-owned patented HDPE Sarapeg, but also that this

great pride as a partner of growth and development with the

State and the nation through the application of our

infrastructure based products. The introduction of Sarapeg

Partnership is indeed a sustainable business model that we

would continue to embark on in the future.

AQUACULTURE

tanks to serve the aquaculture industry. ECOCAGE and

WEIDACAGE systems, made up of a network of interlocking,

especially for freshwater aquaculture in lakes and rivers. A

variety of AQUALIFE polyethylene tanks caters for land-based

collaboration between the State and a local private

company will bring about both environmental and

BUSINESS ACTIVITIES

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ENVIRONMENTAL ENGINEERING SERVICES

Malaysia Book of Record

MANAGEMENT, OPERATIONS AND MAINTENANCE OF TREATMENT PLANTS

management, ranging from management, operation to

maintenance of wastewater treatment plants both locally

and overseas. Our credibility stems from our over 20 years of

spectrum of wastewater treatment solutions optimised in

process, design and treatment capabilities.

Within Malaysia, we have been entrusted to operate and

manage the septic sludge treatment plants in Kuching, Sibu

and Miri on a long-term contract basis. Our team of

professionals make up of former senior and experienced

engineers in operating and maintaining large scale central

sewage treatment plants for Indah Water Konsortium.

d

Winner of The Sixth (6th) SarawakEnvironmental Award (CMEA) 2014

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CONSTRUCTION WORKS

With our technical and financial resources, we have

successfully undertaken and delivered quality construction

works within timely completion period.

Our strong financial resources allow us the flexibility to build

and lease, or via deferred payment; going forward to also

undertake Private Funding Intiative infrastructure and

building projects.

Completed and on-going construction works include

telecommunication towers, treatment plants, distribution

and drainage pipelines, biogas plants, building works and

others.

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PROPERTY DEVELOPMENT

Envisioned as a boutique developer, Weida Properties Sdn. Bhd. (”Weida Properties”) builds for the future, creating niche lifestyle-oriented developments to cater to current market needs. With a strong emphasis on sustainable living, Weida Properties is committed to deliver on its promise of long-term quality.

Our strategy is to focus on prime, mature areas with a large

that is synonymous with lasting quality, innovation and good value. This allows us to satisfy a wide range of investment

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PROPERTY DEVELOPMENT (CONTINUED)

Weida Properties aspires to be a caring developer,

committed to building lasting relationships along the

principles of assisting homeowners to strengthen existing

bonds and to create new friendships within a community

living platform. Through constant customer engagement, we

strive to understand them better, to cater to their evolving

needs.

Urbana Residences @ Ara Damansara is on track for

completion and handover by October 2016. In the pipeline

are projects in Mont’ Kiara and Cheras.

We will continue to strengthen our presence in the property

sector through strategic acquisitions or joint ventures to

increase our landbank in the Klang Valley and beyond.

BUSINESS ACTIVITIES

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FIVE YEARS GROUPFINANCIAL HIGHLIGHTS

FINANCIAL YEAR ENDED 31 MARCH 2012 2013 ^ 2014 2015 2016 (restated)

OPERATING RESULTS

Revenue RM’000 309,682 412,082 318,230 333,841 384,312

Earnings before interest, taxes,

depreciation and amortisation RM’000 46,212 200,073 56,365 50,892 64,598

Earnings before interest and taxes RM’000 32,728 174,506 30,724 28,219 44,449

Profit before tax from:

- continuing operations RM’000 30,133 41,558 31,619 29,166 42,482

- discontinued operation RM’000 - 127,164 - - -

Profit for the financial year RM’000 27,404 149,951 22,951 20,776 26,115

Profit attributable to owners

of the Company RM’000 25,208 153,863 22,143 17,417 26,023

KEY FINANCIAL POSITION DATA

Total assets RM’000 556,163 667,760 627,225 623,945 597,101

Total borrowings RM’000 198,676 198,689 155,473 111,490 87,522

Equity attributable to owners of

the Company RM’000 203,474 333,096 350,486 378,961 400,573

FINANCIAL RATIOS

Basic earnings per ordinary share sen 19.87 121.25 17.45 13.73 20.51

Gross dividend per ordinary share sen 4.00 5.50 3.00 3.00 3.00

Net assets per ordinary share RM 1.60 2.62 2.76 2.99 3.16

Net debt to equity attributable to

owners of the Company times 0.71 N/A # N/A # N/A # N/A #

^

reversion from MFRSs to FRSs and adoption of FRS 10, Consolidated Financial Statements

have not been similarly restated for the effects of the adoption of FRS 10 due to impracticability and non-availability of information.

# In a net cash position.

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STATEMENT ON CORPORATE SOCIAL RESPONSIBILITY

Besides maximising shareholders’ value, Weida (M) Bhd. (“WEIDA”) believes that we are also responsible for our employees, environment and community. One (1) of our main principles as a public listed company is to create long term value. We achieve this by providing our clients with value-added products and services, promoting a corporate culture that adheres to high ethical standards, and by generating superior and sustainable returns for

on what it does above and beyond the requirements of laws and regulations. This is why we are committed to creating a working environment based on the values of meritocracy, equal opportunity and diversity. As part of our business, we contribute to the protection of the environment. We also adhere to high social standards and contribute to the communities we are part of. All our activities are underpinned by our governance structure, which complies with the Malaysian Code on Corporate Governance 2012.

ENVIRONMENT AND MARKETPLACE

Protecting the natural environment, sustainable development and living in harmony with the environment is at the heart of WEIDA’s core business in the water and sewerage sectors. As a one-stop centre for water and sewerage solutions, our people strive to protect the environment every day. For instance, we have designed and built many water and sewage treatment plants, thousands of rain water harvesting and gravity feed water supply systems for rural communities, and countless rural sanitation systems. The communities we serve are far and wide, in Malaysia and Republic of The Philippines.

The engineering products that we manufacture for water and sewerage applications are made from polyethylene (“PE”). PE products are corrosion resistant, relatively lightweight, chemically inert and seamless in construction. These superior characteristics make them ideal substitutes for similar products made from other

of safeguarding customers/public health, has approved polyethylene as safe for use as a medium of storage

asbestos concrete, and in certain cases, polyvinyl chloride (“PVC”), for pipelines and water storage as they are hazardous to health and /or pollute the environment.

Our commitment to serving our community goes beyond providing environmentally friendly products. We go one step further by working hand in hand with local city councils and provide services and infrastructure that

environment, but serve as a platform where WEIDA can make positive contributions to the daily lives of the community.

PEOPLE AND SAFETY

At WEIDA, our people is our main asset. The Group endeavours to attract, develop and retain the best talents the market has to offer by providing a continuous learning and conducive working environment. We believe in recognising, advancing and rewarding top talents in an open and mutually supportive work environment which

shape the root of a sturdy corporate culture that fosters teamwork and unites our people for sustainable growth.

In addition to external professional trainings, seminars and conferences, various teambuilding activities are organised in order to foster awareness of time management and team spirit as well as to reinforce commitment

Safety and health of our employees is our priority and we are continually looking into ways to improve our performance in these areas. WEIDA has implemented its Safety and Health Policy in Malaysia and Republic of The Philippines, which complies with the Occupational Safety and Health Act (“OSHA”) of the respective countries.

COMMUNITY

The future of WEIDA is naturally linked to the standard of living of the communities it serves. Through a wide array of initiatives supported by WEIDA, namely community-development programmes, philanthropy, volunteerism and promotion of health, education, cultural, arts and sports, we are making a difference in improving the quality of life in the community.

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STATEMENT ON CORPORATE SOCIAL RESPONSIBILITY

EVENTS

WEIDA has initiated and/or participated in the following community-based events:

“Send Me To School” Sponsorship Campaign for the Refugees (September 2015)

children living in Kuala Lumpur on one (1) year education fund for an entire class of refugee children and believes that every child matters and education can change a child’s life.

The Institution of Engineers, Malaysia (Sarawak Branch) Engineer’s Run (September 2015)

WEIDA sponsored funds to support the Engineer’s Run, aimed to raise fund for the Sarawak Kidney Association to further assist kidney patients and simultaneously to promote the importance of exercise and health care.

Pertandingan Badminton Commissioner Police (CP) Cup Sarawak Tahun 2015 (September 2015)

which was held in Unimas Kota Samarahan, Sarawak.

Sponsorship of Weida Water Tank to Chung Hua Middle School No. 1 (October 2015)

MPI Generali Run 2016 (January 2016)

WEIDA fully sponsored and encouraged its staff to participate in MPI Generali Run 2016 organised by MPI

Charity Screening Organised by Persatuan Sukan Kebajikan, Kebudayaan Jabatan Bomba dan Penyelamat, Wilayah Persekutuan, Kuala Lumpur (April 2016)

WEIDA sponsored the staff, tickets for Charity Screening at TGV Cinema, an event organised by Persatuan Sukan

by the organiser, will be given to the victims of natural disasters.

Pertandingan Futsal Lelaki dan Wanita JPRB 2016 - Dewan Bandaraya Kuala Lumpur (April 2016)

WEIDA contributed funds to Dewan Bandaraya Kuala Lumpur for their Futsal Competition organised by Dewan Bandaraya Kuala Lumpur Planning Department.

A Visit to the Home for Special People, Cheras (May 2016)

WEIDA donated funds and some electronic appliances to the Home for Special People, Cheras, and the staff also contributed their time and effort by bringing ration and toys for the needy and spent quality time with them,

A Visit to Kirtarsh Handicapped and Disabled Children’s Home (May 2016)

WEIDA and the staff contributed funds and foods to Kirtarsh Handicapped and Disabled Children’s Home, spending time playing and communicating with the children, showering them with care which strengthen the relationship among the participants and create a caring society.

A Visit to Tong Sim Senior Citizens Care Centre (May 2016)

WEIDA and the staff supplied groceries to Tong Sim Senior Citizens Care Centre and spent a few hours interacting with the elderly and shared the moment together.

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The Board of Directors of Weida (M) Bhd. (“the Board”) is steadfast and committed in ensuring that the highest standards of corporate governance are observed and applied throughout Weida (M) Bhd. (“WEIDA” or “the Company”) and its Group of Companies (“the Group”) through its support and application of the Malaysian Code on Corporate Governance 2012 (“MCCG 2012”).

This Corporate Governance Statement (“Statement”) sets out how the Company has applied the eight (8) Principles as outlined in the MCCG 2012 and observed the twenty six (26) Recommendations supporting the

reasons thereof and, where appropriate, the alternative practice, if any, is mentioned in this Statement.

Principle 1 – Establish Clear Roles and Responsibilities of the Board and Management

The Board recognises the key role it plays in charting the strategic direction of the Company and has assumed

(a) reviewing and adopting a strategic plan for the Company, which also addresses the sustainability of the Group’s businesses;

(b) overseeing the conduct of the Group’s businesses and evaluating whether or not its businesses are being properly managed;

(c) identifying principal business risks faced by the Group and ensuring the implementation of appropriate internal controls and mitigating measures to address such risks;

having in place a process to provide for the orderly succession of senior management personnel and members of the Board;

(e) overseeing the development and implementation of a shareholder communications policy; and

(f) reviewing the adequacy and integrity of the Group’s risk management and internal control, and management information systems.

To assist in the discharge of its stewardship role, the Board has established Board Committees, namely the Audit Committee, Nominating Committee, Remuneration Committee and Risk Management Committee, to examine

their recommendations. The ultimate responsibility for decision making, however, lies with the Board.

(i) Board Charter

To enhance accountability, the Board has established clear functions reserved for the Board and those delegated to Management. There is a formal schedule of matters reserved for the Board for its deliberation and decision to ensure the direction and control of the Company are in its hands. Key matters reserved for the Board include, inter-alia, the approval of annual budgets, strategic plan, quarterly and annual

(“the Charter”), which serves as a reference point for Board activities. The Charter provides guidance for Directors and Management regarding the responsibilities of the Board, its Committees and Management, the requirements of Directors in carrying out their stewardship role and in discharging their duties towards the Company as well as boardroom activities. The Charter is available on the Company’s website at www.weida.com.my in line with Recommendation 1.7 of the MCCG 2012. The Board reviews the Charter annually.

The Board has adopted and adhered to a Directors’ Code of Ethics which is in line with that established by the Companies Commission of Malaysia. A summary of the Directors’ Code of Ethics is as set out in Appendix A of the Charter.

CORPORATE GOVERNANCESTATEMENT

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Principle 1 – Establish Clear Roles and Responsibilities of the Board and Management (continued)

(i) Board Charter (continued)

To inculcate good ethical conduct, the Group has also established a Code of Conduct for employees, encapsulated in the Company’s Employees Handbook, which has been communicated to all levels of employees in the Group.

The Board has also formalised a Whistle-Blowing Policies and Procedures, with the aim to provide an avenue for raising concerns related to possible breach of business conduct, non-compliance of laws and regulatory requirements as well as other malpractices. This Whistle-Blowing Policies and Procedures has also been disseminated to all levels of employees in the Group.

(ii) Sustainability of Business

The Board is mindful of the importance of business sustainability and, in conducting the Group’s business, the impact on the environmental, social and governance aspects is taken into consideration. The Group also embraces sustainability in its operations and supply chain, through its own actions as well as in partnership with its stakeholders, including suppliers, customers and other organisations.

A copy of the Group’s Business Sustainability Policy is available at the Company’s website at www.weida.com.my in line with Recommendation 1.4 of the MCCG 2012. The Group’s activities to promote

(iii) Access to Information and Advice

business development and audit matters for decisions to be made on an informed basis and effective discharge of the Board’s responsibilities.

Procedures have been established for timely dissemination of Board and Board Committee papers to all Directors at least seven (7) days prior to the Board and Board Committee meetings, to facilitate decision making by the Board and to deal with matters arising from such meetings. Senior Management of the Group and external advisers are invited to attend Board meetings to provide additional insights and

access to Management, Directors may obtain independent professional advice at the Company’s expense, if considered necessary.

Directors have unrestricted access to the advice and services of the Company Secretaries to enable them to discharge their duties effectively. The Board is regularly updated and advised by the Company

the resultant implications of any changes therein to the Company and Directors in relation to their duties and responsibilities.

(iv) Company Secretaries

Company Secretaries are either member of Malaysian Institute of Accountants (“MIA”) or Malaysian Association of Institute of Chartered Secretaries and Administrators (“MAICSA”). They are competent in carrying out their work, and play supporting and advisory roles to the Board and its Committees. They ensure adherence and compliance to Board policies and procedures as well as regulatory requirements. They keep the Board updated on developments in respect of laws, regulation and corporate governance at Board meetings, and from time to time via electronic means. They ensure that the meetings are properly convened and proceedings of meetings are accurate and comprehensively minuted; and that minutes and statutory records are properly kept and updated.


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Principle 2 – Strengthen Composition of the Board

as set out in the Main Market Listing Requirements (“Listing Requirements”) of Bursa Malaysia Securities Berhad

be independent. The Directors, with their diverse backgrounds and specialisations, collectively bring with them

Report.

(i) Nominating Committee

The Nominating Committee (“NC”) comprises the following members:

Chairman : Yeoh Chin Hoe (Senior Independent Director)

Members : Lee Pet Loi (Independent Director)

YBhg. Dato’ Jamelah Binti Jamaluddin (Independent Director)

The Board and its NC noted that the key tasks of the NC is to ensure that the Company recruits, retains, trains and develops the best available executive and non-executive directors and manages Board renewal and succession effectively. Understanding the role played by the NC is integral to understanding how interactions among the Directors from their varied backgrounds can have an impact on decision making and outcomes. This will enable the NC to build the right board structure and develop an effective functioning group, rather than a group of independently operating individuals or a group of collegial friends.

Paragraph 2.20A of Listing Requirements of Bursa mandates a listed issuer to ensure each of its directors,

competence and time to effectively discharge their respective roles.

Paragraph 15.08A of Listing Requirements of Bursa mandates a listed issuer to establish a NC, with written terms of reference, and to provide a disclosure statement in its annual report on the activities of the NC in

Principle 2 of MCCG 2012 further recommends that the Board should have transparent policies and procedures for selection of Board members. MCCG 2012 also emphasises that the Board should comprise members who bring value to Board deliberations. At the fore, establishing the NC responsible for identifying, nominating and orientating new directors will assist the Board in ensuring Board composition, practices and processes are well established, transparent and accountable.

Delegation of this responsibility to the NC helps to ensure that the Board comprises individuals with core skills and robust business aptitude and allows the Board to instead spend time on strategic matters and its oversight responsibilities.

The Board has developed Directors’ Selection, Recruitment, Assessment Policies and Procedures to put in place guidelines and procedures premised on Principle 2 of MCCG 2012, setting out clearly the role played by NC.

candidates by Board members, deliberation by the NC and recommendations by the NC to the Board.


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Principle 2 – Strengthen Composition of the Board (continued)

(i) Nominating Committee (continued)

New Directors will undergo a familiarisation programme, which includes visits to the WEIDA Group’s businesses, and meetings with Senior Management, as appropriate, to facilitate the new Directors’ understanding of WEIDA Group. The Company Secretaries will ensure that all appointments of new Director are properly carried out and all legal and regulatory obligations are met.

The Board, through the NC conducted an annual assessment of the performance of the Board, as a whole, Board Committees and individual Directors, based on a peer-assessment approach. From the results of the assessment, including the mix of skills and experience possessed by Directors, the Board considered and approved the recommendations made by the NC on the re-election and re-appointment of Directors at the Company’s forthcoming Annual General Meeting.

All assessments and evaluations carried out by the NC in the discharge of all its functions are properly documented.

inter-alia, selecting, assessing and recommending to the Board the candidature of Directors, appointment of Directors to Board Committees and training programmes for the Board. The terms of reference require the NC to review annually the required mix of skills and experience of Directors, annual assessment of the Independent Directors and Group Financial Controller; succession plans and board diversity, including gender diversity and other qualities of the Board, including core-competencies which the Independent Directors should bring to the Board.

Insofar as board diversity is concerned, the composition of the Board shall be guided by the Board Diversity Policy, set out in Appendix C of the Charter, to ensure the Board is of appropriate mix so as to optimise the performance of the Board as a whole and align the Board’s capabilities with the strategic direction of the Company. At this point in time, the Board is contemplating the merits and practicalities of having a workforce diversity policy.

(ii) Directors’ Remuneration

The Remuneration Committee, established by the Board, comprises the following members:

Chairman : Yeoh Chin Hoe (Senior Independent Director)

Members : Lee Pet Loi (Independent Director)

YBhg. Dato’ Jamelah Binti Jamaluddin (Independent Director)

The Board has adopted and formalised Remuneration Policies and Procedures for Directors. The Remuneration Committee is responsible for setting the remuneration policy framework and recommending to the Board the remuneration of Directors so as to ensure that the Company is able to attract and retain directors of the necessary calibre to run the Group successfully. The components of Directors’ remuneration are structured so as to link rewards to corporate and individual performance in the case of Executive

of responsibilities undertaken by the individual Independent Director concerned.

Directors do not participate in discussion and decision making of their individual remuneration.


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Principle 2 – Strengthen Composition of the Board (continued)

(ii) Directors’ Remuneration (continued)

components, distinguishing between Executive and Independent Directors, is as follows:

Salaries and Performance Fees Awards Allowance EPF Total Directors (RM) (RM) (RM) (RM) (RM)

Executive Directors

Subtotal 108,000 2,816,500 180,000 360,820 3,465,320

Independent Directors

Lee Pet Loi 72,000 Nil 28,000 Nil 100,000

Jamaluddin

Subtotal 269,613 Nil 71,113 Nil 340,726 Grand total 377,613 2,816,500 251,113 360,820 3,806,046

The number of Directors of the Company, whose remuneration band falls within the following successive bands of RM50,000, is as follows:

Range of Remuneration Executive Directors Independent Directors RM Number Number

Less than RM50,000* - -

RM100,001 to RM150,000 - 1 RM150,001 to RM450,000* - - RM450,001 to RM500,000 1 -

RM1,400,001 to RM1,600,000* - - RM1,600,001 to RM1,650,000 1 -

* No Director received any remuneration within this range

Principle 3 – Reinforce Independence of the Board

not only of the Group, but also of shareholders, employees, customers, suppliers and the communities in which the Group conducts its business. Independent Directors are essential for protecting the interests of shareholders

impartiality.

The Group Executive Chairman is responsible for ensuring the adequacy and effectiveness of the Board’s governance process and acts as a facilitator at Board meetings to ensure that contributions from Directors are forthcoming on matters being deliberated and that no Board member dominates discussion. The Group Executive Chairman, supported by fellow Executive Directors, implements the Group’s strategies, policies and decisions adopted by the Board and oversees the operations and business development of the Group.


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Principle 3 – Reinforce Independence of the Board (continued)

of Independent Directors and the existence of a Board Charter that formally sets out a schedule of matters reserved solely for the Board’s decision making.

The Independent Directors participated in Board and Board Committees meetings actively and constructively by expressing their independent views.

Committee, assesses the Independent Directors annually based on the Directors’ Selection, Recruitment,

Independent Directors and their ability to act in the best interest of the Group and the minority shareholders

Principle 4 – Foster Commitment of Directors

urgent and important decisions need to be made between scheduled meetings. Board and Board Committees papers, which are prepared by Management, provide the relevant facts and analysis for the convenience of Directors. The meeting agenda, the relevant reports and Board papers are furnished to Directors and Board Committees members at least seven (7) days before the meeting so that the Directors have ample time to peruse the papers for effective discussion and decision making during meetings.

conclusions are properly recorded by the Company Secretaries by way of minutes of meetings.

of attendance of each Director are set out below:

Number of Meetings Attended

Independent Directors Yeoh Chin Hoe (Senior Independent Director) 5 out of 5 YBhg. Dato’ Jamelah Binti Jamaluddin 5 out of 5 Lee Pet Loi 5 out of 5

Executive Directors YBhg. Dato’ Lee Choon Chin (Group Executive Chairman) 5 out of 5 Jee Hon Chong 5 out of 5 Chew Chin Choong 4 out of 5

All proceedings, matters arising, deliberations in terms of the issue discussed, and recommendations made by the Board Committees at the committees’ meetings are recorded in the minutes by the Company Secretaries,

were attended by the Company Secretaries. Upon invitation, Management representatives were present at the Board Committees’ meetings to provide additional insight into matters to be discussed during the said committee meetings, if so required.

commitment from Directors at the time of their appointment. Each Director is expected to commit time as and when required to discharge the relevant duties and responsibilities, besides attending meetings of the Board and Board Committees.


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Principle 4 – Foster Commitment of Directors (continued)

and responsibilities as Directors of the Company. This is evidenced by their attendance at the meetings of the

The Board acknowledges that its Directors may be invited to become directors of other companies and that exposure to other organisation can broaden the experience and knowledge of its Directors which may bring

performance and contributions as a member of the Board.

The Board is mindful of the importance for its members to undergo continuous training to be apprised on changes to regulatory requirements and the impact such regulatory requirements have on the Group, to enable the Directors to sustain their active participation in Board’s deliberations.

conducted by relevant regulatory authorities and professional bodies, details of which are appended below:

Mode of Number of Title of Seminar Training Day(s) Spent

Investment Banking

Provide Interest Rate and FX Direction

International Monetary System

The Best Out in Boardroom

Reporting : The Game Changer for Boardroom

the Boardroom”

The Company Secretaries normally circulate the relevant guidelines on statutory and regulatory requirements from time to time for the Board’s reference and brief the Board on these updates, where applicable. The Group Financial Controller and external auditors also brief the Board members on changes to the Financial Reporting

The Nominating Committee and the Board have deliberated and considered the training needs of Directors and agreed that all Directors should attend at least one (1) training/seminar/course annually. However, all Directors are encouraged to attend any seminar/training/course that aids them in the discharge of their duties as directors.


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Principle 5 – Uphold Integrity in Financial Reporting by the Company

the Company as well as the Statement from Group Executive Chairman and review of the Group’s operations in the Annual Report, where relevant.

the period then ended.

comprising exclusively Non-Executive Directors, all of whom are Independent Directors, with Mr. Yeoh Chin Hoe as the Audit Committee Chairman. The composition of the Audit Committee, including its roles and

statements of the Group and of the Company comply with applicable Financial Reporting Standards in Malaysia

services permitted to be provided by the external auditors, including the need for the Audit Committee’s approval before such services can be provided by the external auditors.

In assessing the independence of external auditors, the Audit Committee has adopted an External Auditor Performance and Independence Checklist and obtained written assurance from the external auditors,

under review.

presence of the other Directors and employees of the Group.

Principle 6 – Recognise and Manage Risks of the Group

The Board regards risk management and internal controls as an integral part of the overall management processes. The following represents the key elements of the risk management and internal control structure:

authority;

operations and ensuing action plans;

(c) Quarterly review of the Group’s business performance by the Board, which also covers the assessment of the impact of changes in business and competitive environment;

(d) Active participation and involvement by the Group Executive Chairman, supported by his fellow Executive

personnel on operational issues; and


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Principle 6 – Recognise and Manage Risks of the Group (continued)

The Board is aware of the importance of putting in place a risk management framework promulgated by Recommendation 6.1 of MCCG 2012. Accordingly, steps are being taken by the Board to formalise this framework as further elaborated in the Statement on Risk Management and Internal Control.

The Risk Management Committee was established on 26 May 2015 by the Board to assist the Board to oversee the overall management of principal areas of risk of the Group. The Risk Management Committee, headed by the Group Executive Chairman, carries out its responsibility to identify and communicate to the Board the principal risks faced by the Group, their evolution, and management action plans to manage these risks.

The Risk Management Committee comprises the following Directors:

Chairman : YBhg. Dato’ Lee Choon Chin (Group Executive Chairman) Members : Chew Chin Choong (Executive Director)

Yeoh Chin Hoe (Senior Independent Director)

Liew Jee Min @ Chong Jee Min (Independent Director) [appointed as member on 24 November 2015]

In line with MCCG 2012 and Listing Requirements of Bursa, the Company has established an in-house internal audit function to assess the adequacy and effectiveness of the Group’s governance, risk management and internal control systems. The in-house internal audit function is guided by professional standards promulgated by the Institute of Internal Auditors Inc, a globally recognised professional body for internal auditors. The Internal Audit Manager reports directly to the Audit Committee. The internal audit function is independent of the

provided in the Report of the Audit Committee of the Company set out on pages 44 to 45 of this Annual Report.

Principle 7 – Ensure Timely and High Quality Disclosure

The Board is aware of the need to establish corporate disclosure policies and procedures to enable comprehensive, accurate and timely disclosures relating to the Company and its subsidiaries to be made to the regulators, shareholders and stakeholders.

Accordingly, the Board has adopted and formalised pertinent Corporate Disclosure Policies and Procedures, not only to comply with the disclosure requirements as stipulated in Listing Requirement of Bursa, but also setting out the persons authorised and responsible to approve and disclose material information to regulators, shareholders and stakeholders.

To augment the process of disclosure, the Board has earmarked a dedicated section for corporate governance on the Company’s website, where information on the Company’s announcements to the regulators, its Charter, rights of shareholders and the Company’s Annual Report may be accessed.

Principle 8 – Strengthen Relationship between the Company and its Shareholders

(i) Shareholder participation at general meeting

The Annual General Meeting (“AGM”), which is the principal forum for shareholder dialogue, allows shareholders to review the Group’s performance via the Company’s Annual Report and pose questions to

or on the Group’s operations in general. At the last AGM, a question and answer session was held where the Group Executive Chairman invited shareholders to raise questions with responses from the Board and Senior Management. The Company’s responses to queries raised by the Minority Shareholder Watchdog Group (“MSWG”) were also shared and read out during the last AGM.

The Notice of AGM was circulated at least twenty-one (21) days before the date of the meeting to enable shareholders to go through the Annual Report and papers supporting the resolutions proposed. All the resolutions set out in the Notice of the last AGM were put to vote by show of hands and duly passed. The Chairman of the AGM declared the outcome of each resolution. The outcome of the AGM was announced to Bursa on the same meeting day.


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Principle 8 – Strengthen Relationship between the Company and its Shareholders (continued)

(i) Shareholder participation at general meeting (continued)

In line with the recent amendments made to the Listing Requirement, all resolutions set out in the notice of the Company’s forthcoming AGM will be voted by poll and the Company shall appoint at least one (1) scrutineer to validate the votes cast at the AGM. A summary of key matters discussed thereat shall be published in the Company website as soon as practicable after the conclusion of the AGM.

(ii) Communication and engagement with shareholders and prospective investors

The Board recognises the importance of being transparent and accountable to the Company’s shareholders and prospective investors. The various channels of communications are through meetings

to Bursa, relevant announcements and circulars, and when necessary, the Annual and Extraordinary General Meetings and through the Group’s website at www.weida.com.my where shareholders and

information and announcements of the Company. To maintain a high level of transparency and to effectively address any issues or concerns, the Group has a dedicated electronic mail, i.e. [email protected] to which stakeholders can direct their queries or concerns.

queries concerning the Group may be conveyed to.

COMPLIANCE STATEMENT

With the introduction of the MCCG 2012, the Board remains committed to inculcating good corporate governance for the Group. The Group will continue to endeavour to comply with all the key principles and recommendations of MCCG 2012 where the Board deems appropriate, in its effort to observe high standards of transparency, accountability and integrity.

STATEMENT ON NOMINATING COMMITTEE ACTIVITIES

its members who are Independent Directors.

and other qualities required for the Board, effectiveness and performance of the Board and Board Committees, contributions and performance of each individual Director, as well as the Group Financial Controller and the independence of the Independent Directors. In addition, the Nominating Committee also assessed the Directors who are due for retirement and re-appointment pursuant to the Company’s Articles of Association

recommendations to the Board for deliberations and decision makings. It also ensures an appropriate framework and plan for Board and senior management succession. The Nominating Committee also assessed the training needs of Directors.

The Nominating Committee reviews and recommends to the Board the structure, size, balance and composition of the Board and Board Committees. This requires a review of the required mix of skills and experience including core competencies that directors should bring to the Board and other qualities for the Board to function

This Statement is issued in accordance with a resolution of the Board of Directors dated 20 June 2016.


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The following information is presented in compliance with the Main Market Listing Requirements:

Utilisation of Proceeds from Corporate Proposal

Share Buy-Back

approval for the Company to purchase and/or hold its own shares of up to ten percent (10%) of its total issued and paid-up share capital of the Company (“Share Buy-Back Authority”). This Share Buy-Back Authority has been renewed at subsequent annual general meetings.

were purchased pursuant to the Share Buy-Back Authority. All the shares purchased are currently retained as treasury shares. None of the shares purchased has been resold or cancelled.

Purchase Price Average Price Total No. of Shares Highest Lowest Paid Consideration Paid Month Purchased RM RM RM RM

May 2015 100 1.660 1.660 1.660 166.00

Options and Convertible Securities

Depository Receipt Programme

Sanctions and/or Penalties

There were no sanctions and/or penalties imposed on the Company and its subsidiaries, Directors or Management

Non-Audit Fees

The total amount of non-audit fees incurred for services comprising tax compliances and advisory services, review of Statement on Risk Management and Internal Control as well as review of compilation of realised and

review.

Variance in Results

unaudited results previously released by the Company.

ADDITIONAL COMPLIANCEINFORMATION

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Material Contracts Involving Directors’ or Major Shareholders’ Interests

year except on 10 November 2015, Weida Integrated Industries Sdn. Bhd. (“WII”), a wholly owned subsidiary of the Company, entered into a sale of shares agreement (“SSA”) with related parties, YBhg. Dato’ Lee Choon Chin (“YBhg. Dato’ Lee”) and Mr. Jee Hon Chong (“Mr. Jee”) to acquire the entire equity interests in the issued and paid up share capital of Premium Fortune Sdn. Bhd. (“PFSB”), comprising 5,000 ordinary shares of RM1.00 each, for a total cash consideration of RM6,000,000 (“the Proposed Share Acquisition”). YBhg. Dato’ Lee is the Group

shareholder of the Company. The Proposed Share Acquisition was completed on 5 January 2016. Consequently, PFSB became a wholly owned subsidiary of WII with effect from 5 January 2016.

Recurrent Related Party Transactions (“RRPT”) of Revenue Nature

pertaining to RRPT.

ADDITIONAL COMPLIANCEINFORMATION

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The Directors are required under the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, to

then ended.

accounting policies have been adopted and are consistently applied and supported by reasonable and

The Directors have responsibility to ensure the Company and the Group maintain proper accounting records

responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and the Group and to prevent and detect fraud and other irregularities.


STATEMENT OFDIRECTORS’ RESPONSIBILITIES

FOR PREPARING THE ANNUAL AUDITED FINANCIAL STATEMENTS

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COMPOSITION OF AUDIT COMMITTEE

The Audit Committee (“the Committee”) comprises the following Directors:

Chairman : Yeoh Chin Hoe (Senior Independent Director) Members : Lee Pet Loi (Independent Director)

Liew Jee Min @ Chong Jee Min (Independent Director)

Mr. Yeoh Chin Hoe is a member of the Malaysian Institute of Accountants (“MIA”) and two (2) other associations

members are as follows:

Number of Title of Seminar Mode of Training Day(s) Spent

the Best Out in Boardroom

Auditor Reporting: The Game Changer for Boardroom

the Boardroom”

SUMMARY OF THE TERMS OF REFERENCE

1. Membership

The Committee shall be appointed by the Board of Directors (“the Board”) from amongst their number

as a member of the Committee.

At least one (1) member of the Committee:

(a) must be a member of MIA; or

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SUMMARY OF THE TERMS OF REFERENCE (continued)

1. Membership (continued)

requirement.

2. Chairman

The Chairman of the Committee (“the Chairman”) shall be an Independent Director elected by the members of the Committee. If the Chairman is absent at any meeting, members present at the meeting shall elect one (1) of them who is an Independent Director to chair the meeting. In the event the position

3. Secretary

The Secretary to the Committee shall be any one (1) of the Joint Company Secretaries.

In the absence of the Secretary at the meeting, the members present at the meeting shall elect any other person as the Secretary of the meeting.

4. Quorum

not be less than two (2) Independent Directors. For purpose of determining whether the quorum for the transaction of the business of the Committee exists in the case of a meeting of the Committee, in addition to the members present at the meeting, any member in telephonic, video conferencing or electronic communication with such meeting shall be counted in the quorum.

5. Meetings and Minutes

The Committee shall hold at least four (4) meetings a year. Additional meetings may be held as and when necessary, upon request by any Committee member, the Management, Internal or External Auditors. Internal Auditors, or persons carrying out the internal audit function or activity, Senior Management and

Board, employees and representatives of External Auditors shall attend the meetings upon the invitation of the Committee.

Notice of any meeting of the Committee may be given by telephone or facsimile and the contemporaneous linking together by telephone or such other electronic communication of a number of the members being not less than the quorum shall be deemed to constitute a meeting of the Committee wherever in the world they are, as long as :

(a) the quorum of Committee is met;

(b) at the commencement of the meeting each member acknowledges the presence thereof to all the other members taking part and such participation shall be deemed to be present in person;

throughout the meeting;

(d) the members present at the commencement of the meeting do not leave the meeting by disconnecting the telephone, video conferencing or such other electronic devices, but the meeting shall be deemed to have been conducted validly notwithstanding that a member’s telephone, video conferencing or such other electronic devices is unintentionally disconnected during the meeting and the proceedings thereof shall be deemed to be as valid as if the telephone, video conferencing or such other electronic devices had not been disconnected;

REPORT OF THEAUDIT COMMITTEE

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5. Meetings and Minutes (continued)

(e) all information and documents are made equally available to all participants prior to or at/during the meeting; and

Notice of meeting and board papers shall be given to all members of the Committee at least fourteen (14) days and seven (7) days respectively before the date of meeting.

will be approved by the Chairman or in his absence, by any one (1) of the Committee’s members. The Secretary will inform/remind the relevant persons to submit their reports/materials/papers on presentation

circulated/presented at the meeting.

the Chairman shall have a second or casting vote, provided that where two (2) members form a quorum, the Chairman of a meeting at which only such a quorum is present, or at which only two (2) Directors are competent to vote on the question in issue, the Chairman shall not have a casting vote.

Minutes of each meeting shall be signed by the Chairman of the meeting at which the proceedings were held or by the Chairman of the next succeeding meeting and shall be accepted as prima facie evidence without further proof of the facts stated therein. Such minutes of meetings shall be kept by the Secretary and distributed to each member of the Committee. The Chairman shall report on each meeting to the Board from time to time.

A resolution in writing signed by all members of the Committee shall be deemed to have been passed at a meeting held on a date on which it was signed by the last member of the Committee.

6. Authority

The Committee is authorised by the Board to:

(a) investigate any activity within its terms of reference and shall have unrestricted access to all employees of Weida (M) Bhd. (“the Company”) and its Group of Companies (“the Group”);

(b) have the resources in order to perform its duties as set out in its terms of reference;

(c) have full and unrestricted access to information pertaining to the Group;

(d) have direct communication channels with the Internal and External Auditors;

(e) obtain external legal or other independent professional advice as necessary; and

(f) convene meetings with the Internal Auditors, External Auditors or both, excluding the attendance of other Directors and employees of the Group at least twice a year.

Notwithstanding anything to the contrary hereinbefore stated, the Committee does not have executive powers and shall report to the Board on matters considered and its recommendations thereon, pertaining to the Group.


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7. Responsibility

Where the Committee is of the view that a matter reported by it to the Board has not been satisfactorily resolved resulting in a breach of the Main Market Listing Requirements, the Committee has the responsibility to promptly report such matter to Bursa.

8. Functions and Duties

The duties of the Committee are to:

(a) consider the appointment or re-appointment, nomination, resignation and dismissal of External Auditors, the audit fee and any questions of resignation or dismissal;

(b) review the nature and scope of audit plans prepared by the Internal and External Auditors before the audit commence;

Management’s responses thereto;

Auditors may wish to bring up;

Company and the Group, primarily focusing on the matters set out below, before submission to the Board:

addressed; and

(f) review the internal audit programme, processes, the results of the internal audit programme and

internal investigations carried out by the Internal Auditors and ensure that appropriate action is taken by Management in respect of the audit observations and the Committee’s recommendations;

(g) review the auditors’ evaluation of the system of internal controls;

(h) review the adequacy of the scope, functions, competency and resources of the Internal Audit Department (“IAD”) and whether it has the necessary authority to carry out its work;

(i) review any appraisal or assessment of the performance of the staff in the IAD and their independence and effectiveness of the overall audit process;

(k) be informed of any resignation of Executives in the IAD and to provide the resigning Executive an opportunity to submit his or her reason for resigning;

(l) review the assistance given by the Company and the Group’s employees to the auditors;


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8. Functions and Duties (continued)

and the Group including any transactions, procedures or cause of conduct that raises questions of Management integrity;

(n) review any letter of resignation from the External Auditors of the Group;

(o) review whether there is reason (supported by grounds) to believe that the Group’s External Auditors is not suitable for re-appointment;

(p) to establish and review policies and procedures to assess the suitability and independence of External Auditors;

(q) to review the Statement on Risk Management and Internal Control for disclosure in Annual Report prior to recommendation to the Board for approval;

(r) to review terms of reference of Committee and recommend to the Board for approval; and

(s) perform such other functions as may be agreed to by the Committee and the Board.

MEETINGS AND ATTENDANCE

the members as follows: Number of Meetings Attended

Yeoh Chin Hoe 5 out of 5 Lee Pet Loi 5 out of 5

The Group Executive Chairman, an Executive Director, Senior Management, External and Internal Auditors attended some of these meetings upon invitation by the Committee.

All proceedings, matters arising and deliberations in terms of the issues discussed, and recommendations of the

by the Chairman of the meeting.

All the Committee meetings were attended by both of the two (2) Company Secretaries. The Chairman reported


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SUMMARY OF ACTIVITIES

The Committee, had in line with its terms of reference, carried out the following activities in the discharge of its functions and duties:

1. Financial Reporting

the Group against the preceding year’s results prior to submission to the Board for consideration and approval;

standards and recommended to the Board;

(c) reviewed the Group’s actual results against budgeted results on a quarterly basis;

addressed;

(f) considered inventory written off/down and bad receivable written off.

2. External Audit Functions

(a) reviewed the Annual Audit Planning Memorandum of External Auditors;

(c) assessed the independence and suitability of External Auditors;

(d) considered and recommend to the Board for approval, the re-appointment of External Auditors, as well as their remuneration; and

(e) met up with External Auditors twice, excluding the attendance of the other Directors and employees of the Group.

(a) reviewed and approved the Annual Internal Audit Plan and updates thereof prepared by the IAD;

recommendations (incorporating Management’s response) and action plans with persons responsible and a time frame for implementation of the recommendations;

(c) reviewed the adequacy of the scope, functions, competency and resources of the internal audit function and that it has the necessary authority to carry out its work;

(d) reviewed the Internal Auditor’s performance and their independence and effectiveness of the overall audit process; and

(e) met up with Internal Auditors excluding the attendance of the other Directors and employees of the Group.


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SUMMARY OF ACTIVITIES (continued)

4. Related Party Transactions

Company and the Group including any transactions, procedures or course of conduct that raises

approval;

(b) reviewed the adequacy of the disclosure on related party transactions entered into by the Company and the Group in the quarterly announcement and Annual Reports of the Company; and

(c) reviewed the revised related party transaction policies and procedures for Board’s approval.

5. Company Policies and Procedures

(a) reviewed changes and implementation of policies and procedures prior to recommendation to the Board for approval.

6. Risk Management and Internal Control

(a) reviewed the Statement on Risk Management and Internal Control for disclosure in Annual Report 2015 prior to recommendation to the Board for approval.

7. Terms of Reference of Committee

(a) reviewed the proposed amendments made to the terms of reference of Committee and recommended to the Board for approval.

INTERNAL AUDIT FUNCTION

The Group has an IAD which assists the Committee in discharging its duties and functions as outlined in the Committee’s terms of reference. The Internal Audit Charter sets out the purpose, responsibility, scopes, independence and authority of the IAD. The internal audit function adopt a risk-based audit approach in planning and conducting audits by focusing on key risk areas.

The principal responsibility of the IAD is to undertake regular and systematic reviews of the system of internal

implementation of sound governance processes. It is independent of the activities it audits.

(a) review and appraise the soundness, adequacy and application of the system of internal controls and recommend improvements thereon;

(b) ascertain the extent of compliance with established policies, procedures and statutory requirements;

(d) review the controls for safeguarding assets and as appropriate, verify the existence of assets;

(e) carry out special reviews and investigations requested by the Committee and the Board; and

processes of the Group.


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INTERNAL AUDIT FUNCTION (continued)

is tasked to provide reasonable assurance to the Committee on the effectiveness of the risk management, internal control and governance processes within the Group.

operations of the Group based on assessed risks. The internal audit reports on the adequacy of controls and

Committee and recommendations were duly acted upon by the Management.

This report is issued in accordance with a resolution of the Board of Directors dated 20 June 2016.


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INTRODUCTION

The Board of Directors (“the Board”) of Weida (M) Bhd. (“the Company”) is committed to maintain a sound system of risk management and internal control in the Group and is pleased to provide the following Statement on Risk Management and Internal Control (“Statement”), which outlines the nature and scope of risk management and internal control of the Company and its Group of Companies (“the Group”) during

Guidelines for Directors of Listed Issuers (“Guidelines”) issued by Bursa Malaysia Securities Berhad (“Bursa”) on the issuance of the Statement pursuant to Paragraph 15.26(b) of the Main Market Listing Requirements.

BOARD RESPONSIBILITY

The Board recognises the importance of maintaining a sound system of internal control and the proper

safeguard the Group assets as well as the interest of shareholders, customers, regulators and employees.

management, and for reviewing the operating adequacy and effectiveness of the said system. The system

manage the said risks.

In view of the limitations inherent in any system of risk management and internal controls, the system is designed to manage, rather than eliminate, the risk of failure to achieve the Group’s business and corporate

misstatement or loss.

faced by the Group. The Board, through its Audit Committee, reviews the results of this process, including

the Annual Report of the Company.

RISK MANAGEMENT FRAMEWORK

The Board is committed to put in place a risk management framework promulgated by Recommendation 6.1 of the Malaysian Code on Corporate Governance 2012 (“MCCG 2012”). Accordingly, steps are being taken by the Board to formalise this framework, which provided a structured process to identify, evaluate,

(a) the principal risks faced by the Group under appropriate risk categories based on the key processes of operations;

(b) the likelihood of risks crystallising and the resulting impact thereof; and

(c) the internal controls deployed by Management to address those risks.

appropriate risk response actions are carried out in a timely manner.

The Risk Management Committee (“RMC”) was established on 26 May 2015 by the Board to assist the Board to oversee the overall management of principal areas of risk of the Group. The RMC, headed by the Group Executive Chairman, carries out its responsibility to identify and communicate to the Board the principal risks faced by the Group, their evolution, and Management’s action plans to manage these risks. Furthermore, a Risk Management Working Group (“RMWG”), comprising Senior Executives, was established on 1 December 2015 by RMC. The primary purpose of the RMWG is to assist the RMC in discharging its duties and functions as outlined in RMC’s terms of reference.

STATEMENT ON RISK MANAGEMENTAND INTERNAL CONTROL

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INTERNAL AUDIT FUNCTION

The Audit Committee evaluates the in-house internal audit function to assess its effectiveness in the discharge of its responsibilities. The internal audit function provides assurance to the Audit Committee through the execution of internal audit based on a risk-based Internal Audit Plan approved by the Audit Committee before commencement of work. Its scope of works includes reviews and evaluation of operational and

function is independent of the activities it audits.

Observations from internal audit carried out are presented, together with Management’s response and proposed action plans, to the Audit Committee. The internal audit function also follows up and reports to the Audit Committee on the status of implementation of action plans by Management on the recommendations

or lapses have been noted. The Audit Committee considers reports from the internal audit function and comments from Management, before presenting summaries of the report to the Board on a quarterly basis or earlier as appropriate. Further details of the activities of the internal audit function are provided in the Report of the Audit Committee.

INTERNAL CONTROL FRAMEWORK

The key elements of the Group’s internal control system are described below:

(a) Limits of authority and responsibility

established through the relevant charters/terms of reference, organisational structures and appropriate

corporate structure further enhances the ability of each subsidiary or division, as the case may be, to focus on its assigned core or support functions within the Group;

(b) Written policies and procedures

operations within the Group;

(c) Planning, monitoring and reporting

prepare the annual strategic plan, capital and operating expenditure budgets for discussion and approval by the Board;

the boards of directors of subsidiaries;

key management issues;

and actions to be taken, where necessary;

Senior Management for the monitoring of performance against strategic plan;


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INTERNAL CONTROL FRAMEWORK (continued)

(c) Planning, monitoring and reporting (continued)

Management, which is subsequently reported to the Board;

conduct and ethics as contained in the Employee’s Handbook is in place to support the business

concerns related to possible breach of business conduct, non-compliance of laws and regulatory requirements as well as other malpractices;

that the assets of the Group are adequately covered against calamities and/or theft that may result in material losses to the Group;

to all staff, Internal Auditors or persons carrying out the internal audit function or activity and External Auditors.

ASSURANCE PROVIDED BY GROUP EXECUTIVE CHAIRMAN AND GROUP FINANCIAL CONTROLLER

The Group Executive Chairman and Group Financial Controller have provided assurance to the Board in writing stating that the Group’s internal control system has operated adequately and effectively, in all

The Board is of the view that the internal control system is satisfactory and have not resulted in any material losses, contingencies or uncertainties that would require disclosure in this Annual Report. The Board continues to take pertinent measures to sustain and, where required, to improve the Group’s risk management



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50 Directors’ Report

54 Statement by Directors

54 Statutory Declaration

55 Independent Auditors’ Report

57 Statements of Financial Position

58

60

64

65

68

STATEMENTS

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PRINCIPAL ACTIVITIES

RESULTS

Group Company RM RM

DIVIDENDS

RESERVES AND PROVISIONS

DIRECTORS OF THE COMPANY

Lee Pet Loi

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651

DIRECTORS’ INTERESTS IN SHARES

Number of ordinary shares of RM0.50 each At At 1.4.2015 Bought Sold 31.3.2016

Shareholdings in the Company in which Directors have direct interests

7,074,2421,764,776

12,000

Number of ordinary shares Par At At value 1.4.2015 Bought Sold 31.3.2016

Shareholdings in which Dato’ Lee Choon Chin has deemed interests

26,877,974

Subsidiaries

56,000580,000

-24,999

8,407,277640,000

22,500,010

255,000

140,00051

100,00075

BND = Brunei DollarPHP = Philippine Peso

* Deemed interest by virtue of his substantial interest in Weida Management Sdn. Bhd. and the interests of his children in Weida (M) Bhd.** Deemed interest by virtue of his substantial interest in Weida (M) Bhd.

REPORT

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DIRECTORS’ INTERESTS IN SHARES (CONTINUED)

DIRECTORS’ BENEFITS

ISSUE OF SHARES AND DEBENTURES

OPTIONS GRANTED OVER UNISSUED SHARES

OTHER STATUTORY INFORMATION

REPORT

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OTHER STATUTORY INFORMATION (CONTINUED)

AUDITORS

Yeoh Chin Hoe

Dato’ Lee Choon Chin

REPORT

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Yeoh Chin Hoe Dato’ Lee Choon Chin

Wang Tin Ngee

Wang Tin Ngee

STATEMENT BY DIRECTORS

STATUTORY DECLARATION

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REPORT ON THE FINANCIAL STATEMENTS

Directors’ Responsibility for the Financial Statements

Auditors’ Responsibility

audit opinion.

Opinion

Malaysia.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WEIDA (M) BHD.

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OTHER REPORTING RESPONSIBILITIES

OTHER MATTERS

KPMG Nicholas Chia Wei Chit

INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF WEIDA (M) BHD.

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Group Company 2016 2015 2016 2015 Note RM RM RM RM

Assets

107,488,076 879,014Prepaid lease payments 4 3,051,058 - -

- - 56,460,222291,902 490,000799,545 - -

18,711,452 - -3,018,130 113,827,438

228,422 3,4222,292,573 - -

Total non-current assets 135,881,158 171,660,096

43,077,111 - -176,648,903 - -133,203,361 93,971,273

Deposits and prepayments 14 3,612,675 464,3805,266,715 723,975

- - -98,543,388 22,268,387

460,352,153 117,428,015867,568 - - -

Total current assets 461,219,721 117,428,015

Total assets 597,100,879 289,088,111

Equity

66,666,666 66,666,666333,906,673 150,832,822

Total equity attributable to owners of the Company 400,573,339 217,499,488Non-controlling interests 5 9,673,776 - -

Total equity 410,247,115 217,499,488

Liabilities

46,482,270 16,366,84511,885,629 1,739,000 -

Total non-current liabilities 58,367,899 18,105,845

86,506,836 46,204,469327,065 - - -

41,039,981 7,278,309611,983 - -

Total current liabilities 128,485,865 53,482,778

Total liabilities 186,853,764 71,588,623

Total equity and liabilities 597,100,879 289,088,111

STATEMENTS OF FINANCIAL POSITION

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Revenue 21 384,311,984 15,876,115

10,325,269 1,081,855

(125,237,652) - - (60,510,695) - - (33,561,272) - -

61,083 - -(59,845,660) (9,255,335)

Depreciation and amortisation(20,149,259) (457,300)(18,135,662) - -(7,364,829) - -

(23,741,956) (7,465,881)

Results from operating activities 22 46,151,351 (220,546)

(1,702,250) - - -

3,431,591 12,752,561(5,288,538) (3,357,108)

(1,856,947) 9,395,453

associate 6 (109,981) - -

42,482,173 9,174,907

(16,367,009) (1,728,727)

26,115,164 7,446,180

Other comprehensive income/(loss),

- - -

351,192 - -

1,702,758 - - -

(310) (310)

2,053,640 (310)

2,053,640 (310)

Total comprehensive income for the 28,168,804 7,445,870

STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

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attributable to: 26,022,909 7,446,180

92,255 - -

26,115,164 7,446,180

Total comprehensive income attributable to:

26,998,284 7,445,8701,170,520 - -

28,168,804 7,445,870

Basic/Diluted earnings per ordinary share (sen) 26 20.51

STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

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Attributable to Non- Foreign

Share Revaluation translation capital reserve reserve Group Note RM RM RM

At 1 April 2014

Foreign exchange translation differences for foreign operations

assetsRevaluation of land and buildings

Total comprehensive income/(loss) for the

Total transactions with owners of the Company

Total transactions with non-controlling interests

At 31 March 2015/1 April 2015

TATEMENT OF CHANGES IN EQUITY

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owners of the Company distributable Distributable

Treasury Fair value Retained controlling Totalshares reserve earnings Total interests equity

RM RM RM RM RM RM

CHANGES IN EQUITY

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Attributable to Non- Foreign

Share Revaluation translation capital reserve reserve Group (continued) Note RM RM RM


Foreign exchange translation differences for foreign operations Realisation of foreign exchange reserve upon disposal of a subsidiary

assets

Total comprehensive income/(loss) for the

Total transactions with owners of the Company

Total transactions with non-controlling interests

At 31 March 2016 66,666,666 24,867,211 (1,145,157)

CHANGES IN EQUITY

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owners of the Company distributable Distributable

Treasury Fair value Retained controlling Totalshares reserve earnings Total interests equity

RM RM RM RM RM RM

(4,600,545) 4,849 314,780,315 400,573,339 9,673,776 410,247,115

CHANGES IN EQUITY

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Non-distributable Distributable Share Treasury Fair value Retained capital shares reserve earnings TotalCompany Note RM RM RM RM RM At 1 April 2014

- Fair value changes of available-for-sale

Total comprehensive (loss)/ income for the

Total distributions to owners of the Company

At 31 March 2015/ 1 April 2015

- Fair value changes of available-for-sale

Total comprehensive (loss)/

year

Total distributions to owners of the Company

At 31 March 2016 66,666,666 (4,600,545) 4,849 155,428,518 217,499,488

STATEMENT OF CHANGES IN EQUITY

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42,482,173 9,174,907

41,658 - -10,680,122 - -

- prepaid lease payments 4 119,136 - -

9,308,344 457,300174,759 - -

360,550 - - (248) (151) (7,773,168)

1,702,250 - - -2,500 - - -

(219,679) 8465,288,538 3,357,108

(3,431,591) (12,752,561)

- - -

52,932 - -1,324,551 - - -

99,487 4,625611,010 - -

(424,835) 320

associate 109,981 - -

68,281,638 (7,530,623)

1,438,442 - -(99,181,786) - -

31,470,250 (106,029,387)

450,550 19,845,821

operations 2,459,094 (93,714,189)Interest paid (201,475) (23,237)

(15,743,675) (272,526)

Net cash used in operating activities (13,486,056) (94,009,952)

STATEMENTS OF CASH FLOWS

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(5,250,032) -

[Note (i)] (7,565,440) (25,741)(174,759) - - -

in subsidiaries (1,930,000) 9,848,400

94,500 - - -1,423,206 3,250

(16,401,904) - - -

- - -

(1,169,754) (2,009,517) -248 151 7,773,168

3,119,338 12,752,561 Net cash (used in)/from investing activities (27,854,597) 28,342,121

Net repayment of Islamic Bonds - - -

(26,998,079) (14,425,108)

acceptance (4,063,000) - - - 5,000,000 - - -

(432) (415) (432) (415)Interest paid (6,040,961) (3,333,871)

(3,806,836) (3,806,836)(1,942,080) - - -

(37,851,388) (21,566,247)

(79,192,041) (87,234,078)

377,210 - -

175,348,702 107,492,948

Cash and cash equivalents at end of [Note (ii)] 96,533,871 20,258,870


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Notes

(i) Acquisition of property, plant and equipment

Group Company 2016 2015 2016 2015 RM RM RM RM

7,565,440 25,7412,093,234 -

9,658,674 25,741

(ii) Cash and cash equivalents


77,986,612 20,009,16518,529,554 249,705

17,705 - -

(see Note 16) 96,533,871 20,258,870


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1. BASIS OF PREPARATION

(a) Statement of compliance

Agreements for the Construction of Real Estate

FRS/Amendment/Interpretation Effective date

Non-Current Assets Held for Sale and Discontinued Operations (Annual Improvements 2012-2014 Cycle) 1 January 2016

Financial Instruments: Disclosures (Annual Improvements 2012-2014 Cycle) 1 January 2016

Consolidated Financial Statements Disclosure of Interests in Other Entities Investments in Associates and Joint Ventures - Investment Entities : Applying the Consolidation Exception 1 January 2016

Interests in Joint Operations 1 January 2016Regulatory Deferral Accounts 1 January 2016

Presentation of Financial Statements 1 January 2016

1 January 2016Agriculture

- Agriculture: Bearer Plants 1 January 20161 January 2016

Separate Financial Statements 1 January 2016 Interim Financial Reporting (Annual Improvements

2012-2014 Cycle) 1 January 2016Statements of Cash Flows Disclosure Initiative 1 January 2017

1 January 2017Financial Instruments (2014)

Amendments to Consolidated Financial Statements Investments in Associates and Joint Ventures - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture To be determined

NOTES TO THE FINANCIAL STATEMENTS

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69

1. BASIS OF PREPARATION (CONTINUED)

(a) Statement of compliance (continued)

Amendments to FRS 10, Consolidated Financial Statements, FRS 12, Disclosure of Interests in Other Entities and FRS 128, Investments in Associates and Joint Ventures – Investment Entities: Applying the Consolidation Exception

Migration to new accounting framework

MFRS/Amendment/Interpretation Effective date

Revenue from Contracts with CustomersRevenue from Contracts with Customers

Financial Instruments (2014)

Revenue from Contracts with Customers , Revenue from Contracts with Customers

MFRS 15 replaces the guidance in Construction Contracts, Revenue, Agreements for

Construction of Real Estate Transfers of Assets from CustomersRevenue Barter Transactions Involving Advertising Services.

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(a) Statement of compliance (continued)

Migration to new accounting framework (continued)

MFRS 9, Financial Instruments

Financial Instruments: Recognition and Measurement

Leases

Determining Whether

16.

(b) Basis of measurement

Note 2.

(c) Functional and presentation currency

currency.

(d) Use of estimates and judgements

estimates.

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(d) Use of estimates and judgements (continued)

inter alia

inter alia

2. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of consolidation

(i) Subsidiaries

de facto

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2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(a) Basis of consolidation (continued)

(ii) Business combinations

liabilities assumed.

(iii) Acquisitions of non-controlling interests

(iv) Acquisitions from entities under common controls

(v) Loss of control

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(a) Basis of consolidation (continued)

(vi) Associates

liabilities.

(vii) Non-controlling interests

balance.

(viii) Transactions eliminated on consolidation

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(b) Foreign currency

(i) Foreign currency transactions

income.

(ii) Operations denominated in functional currencies other than Ringgit Malaysia (“RM”)

(c) Financial instruments

(i) Initial recognition and measurement

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(c) Financial instruments (continued)

(i) Initial recognition and measurement (continued)

(ii) Financial instruments categories and subsequent measurement

Financial assets

(b) Held-to-maturity investments

(c) Loans and receivables

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(ii) Financial instruments categories and subsequent measurement (continued)

Financial assets (continued)

Financial liabilities

cannot be reliably measured are measured at cost.

(iii) Financial guarantee contracts

and

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(v) Derecognition

(d) Property, plant and equipment

(i) Recognition and measurement

depreciation and any accumulated impairment losses.

date.

or loss.

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(d) Property, plant and equipment (continued)

(i) Recognition and measurement (continued)

Property, plant and equipment under the revaluation model

cost.

(ii) Subsequent costs

loss as incurred.

(iii) Depreciation

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(e) Leased assets

(i) Finance lease

(ii) Operating lease

(f) Intangible assets

(i) Goodwill

(ii) Other intangible assets

accumulated amortisation and any accumulated impairment losses.

(iii) Subsequent expenditure

loss as incurred.

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(f) Intangible assets (continued)

(iv) Amortisation

for use.

Goodwill:

Other intangible assets:

period and adjusted as appropriate.

(g) Inventories

(h) Property development costs

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(i) Construction work-in-progress

(j) Cash and cash equivalents

(k) Non-current assets held for sale

disposal.

or depreciated.

(l) Impairment

(i) Financial assets

is estimated.

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(l) Impairment (continued)

(i) Financial assets (continued)

(ii) Other assets

time.

unit.

pro rata basis.

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(l) Impairment (continued)

(ii) Other assets (continued)

(m) Equity instruments

(i) Issue expense

(ii) Ordinary shares

(iii) Repurchase, disposal and reissue of share capital (treasury shares)

premium.

(iv) Distributions of assets to owners of the Company

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reliably.

(ii) State plans

(o) Contingent liabilities

(p) Revenue and other income

(i) Goods sold

(ii) Construction contract

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(p) Revenue and other income (continued)

(ii) Construction contract (continued)

system contracts.

(iii) Property development

(iv) Services rendered

(v) Stone extraction

(vi) Dividend income

date.

(vii) Management fee

(viii) Share of rental proceeds

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(p) Revenue and other income (continued)

(ix) Rental income

(x) Interest income

(q) Borrowing costs

asset for its intended use or sale are interrupted or completed.

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(s) Earnings per ordinary share

(t) Operating segments

(u) Fair value measurements

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3. PROPERTY, PLANT AND EQUIPMENT

land land Buildings Group RM RM RM

Cost/Valuation

13,785,000 29,023,191 31,575,726

Representing items at:

- 1,294,593 839,653 13,785,000 27,728,598 30,736,073

13,785,000 29,023,191 31,575,726

Depreciation and impairment losses

At 1 April 2014

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Plant, machinery and moulds

purchase lease equipment and tools SubtotalRM RM RM RM

58,360,958 6,896,154 15,243,897 154,884,926

58,360,958 6,896,154 15,243,897 82,635,255- - - 72,249,671

58,360,958 6,896,154 15,243,897 154,884,926

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3. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

land land Buildings Group RM RM RM

Depreciation and impairment losses (continued)

- Accumulated depreciation - 722,039 1,502,148 - Accumulated impairment losses - - -

- 722,039 1,502,148

Carrying amounts

13,785,000 28,301,152 30,073,578

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Plant, machinery and moulds

purchase lease equipment and tools SubtotalRM RM RM RM

39,084,631 1,475,094 11,043,561 53,827,4732,775,248 - - 2,775,248

41,859,879 1,475,094 11,043,561 56,602,721

16,501,079 5,421,060 4,200,336 98,282,205

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3. Property, plant and equipment (continued)

Motor vehicles Electrical Under installation

Subtotal purchase lease renovation Group (continued) RM RM RM RM

Cost/Valuation (continued)

154,884,926 8,006,213 2,205,552 4,875,256

Representing items at: (continued)

82,635,255 8,006,213 2,205,552 4,875,256 72,249,671 - - -

154,884,926 8,006,213 2,205,552 4,875,256


At 1 April 2014

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Assets under construction Other Under

equipment structure purchase lease totalRM RM RM RM RM

24,488 6,431,466 2,229,583 - 178,657,484

24,488 6,431,466 2,229,583 - 106,407,813 - - - - 72,249,671

24,488 6,431,466 2,229,583 - 178,657,484

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Motor vehicles Electrical Under installation

Subtotal purchase lease renovation Group (continued) RM RM RM RM


(continued)

- Accumulated depreciation 53,827,473 6,532,423 1,667,543 3,194,939 - Accumulated impairment losses 2,775,248 - - -

56,602,721 6,532,423 1,667,543 3,194,939

Carrying amounts (continued)

98,282,205 1,473,790 538,009 1,680,317

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Assets under construction Other Under

equipment structure purchase lease totalRM RM RM RM RM

3,382 3,168,400 - - 68,394,160- - - - 2,775,248

3,382 3,168,400 - - 71,169,408

21,106 3,263,066 2,229,583 - 107,488,076

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equipment, Under

Company RM RM RM RM RM

Cost

2,575,788 446,834 845,794 1,028,205 4,896,621

Depreciation

2,288,921 404,561 353,841 970,284 4,017,607

Carrying amounts

286,867 42,273 491,953 57,921 879,014

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3.1 Leasehold land

Carrying amounts 2016 2015Group RM RM

Leasehold land7,392,045

20,909,107

28,301,152

3.2 Property, plant and equipment under the revaluation model

Group RM

Group 2016 2015 RM RM

3,651,0454,635,337

18,556,029

26,842,411

3.3 Security

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3.4 Allocation of depreciation


9,308,344 457,300

18,055 - -

9,326,399 457,300

3.5 Impairment testing of property, plant and equipment

3.6 Asset held in trust

4. PREPAID LEASE PAYMENTS - GROUP

Leasehold land

than 50 years) RM

Cost

Amortisation

1,328,942

Carrying amounts

3,051,058

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99

5. INVESTMENT IN SUBSIDIARIES

Company 2016 2015 RM RM

57,178,091(717,869)

56,460,222

Effective ownership interest and voting interest (%)Subsidiary Principal activities 2016 2015

100.00 100.00

100.00 100.00

systems

100.00 100.00

100.00 100.00

proceeds from telecommunication

100.00 100.00

56.00 56.00

100.00 100.00

100.00 100.00

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5. INVESTMENT IN SUBSIDIARIES (CONTINUED)


100.00 70.00

99.99

51.00 51.00

100.00 100.00

- -

70.00 70.00

51.00 51.00

100.00 100.00

Subsidiaries of WII

100.00 100.00

100.00 -

Subsidiary of WISB

99.99 Subsidiaries of WPSB

100.00

100.00 100.00

75.00 75.00

Subsidiaries of WET

32.48

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Subsidiaries of WET (continued)

- 44.24

44.80

56.00 56.00 systems

Despite there is no ownership interest, the Group consider Serrisa as its subsidiary by virtue of existence of controls and rights to variable returns.

Non-controlling interests (“NCI”) in subsidiaries

Other individually immaterial WET BPSB AASB subsidiaries TotalGroup RM RM RM RM RM

2016

44% 49% 25% 10,528,021 (193,709) (698,052) 37,516 9,673,776

1,004,927 (645,062) (345,463) 77,853 92,255

information before intra-group elimination

As at 31 March 2016Non-current assets 797,643 3,449,833 - -

19,866,210 3,195,560 118,406,616 169,215Non-current liabilities (10,300) (1,197,359) - -

(3,141,150) (5,843,358) (121,198,824) (29,191)

17,512,403 (395,324) (2,792,208) 140,024

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Non-controlling interests (“NCI”) in subsidiaries (continued)

Other individually immaterial WET BPSB AASB subsidiariesGroup (continued) RM RM RM RM

2016 (continued)

intra-group elimination (continued)

Financial year ended 31 March 201619,996,753 1,342,435 - -

605,759 (1,316,452) (1,381,850) (13,844)

605,759 (1,316,452) ( 1,381,850) (13,844)

1,832,765 3,386,520 34,936 (8,597)3,653,701 (2,229,572) 2,076 4,881

(4,482,000) (161,536) - -

1,004,466 995,412 37,012 (3,716)

Other individually immaterial WET BPSB LPSB AASB subsidiaries TotalGroup RM RM RM RM RM RM

2015

information before intra-group elimination

As at 31 March 2015

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Non-controlling interests (“NCI”) in subsidiaries (continued)

Other individually immaterial WET BPSB LPSB AASB subsidiariesGroup (continued) RM RM RM RM RM

2015 (continued)

information before intra-group elimination (continued)

Financial year ended 31 March 2015

6. INVESTMENT IN AN ASSOCIATE


490,000 490,000(198,098) - -

291,902 490,000

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6. INVESTMENT IN AN ASSOCIATE (CONTINUED)

Effective ownership interest and voting interest (%)Name of entity Nature of relationship 2016 2015

construction of facilities and infrastructure

associate.

Asaljuru Weida Sdn. Bhd.Group RM

2016

As at 31 March 20163,425,020

Non-current liabilities (1,400,000)(1,429,303)

Net assets 595,717

(224,442)

Reconciliation of net assets to carrying amount

As at 31 March 2016291,902

291,902

(109,981)

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6. INVESTMENT IN AN ASSOCIATE (CONTINUED)

Asaljuru Weida Sdn. Bhd.Group (continued) RM

2015

As at 31 March 2015

Reconciliation of net assets to carrying amount

As at 31 March 2015

7. GOODWILL - GROUP

With

lives lives Total RM RM RM

Cost

791,496 341,313 1,132,809

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7. GOODWILL - GROUP (CONTINUED)

With

lives lives Total RM RM RM

Amortisation

333,264 - 333,264

Carrying amounts

458,232 341,313 799,545

Impairment testing for cash-generating units containing goodwill

2016 2015 RM RM

458,232

267,485 -73,828

341,313

Total 799,545

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7. GOODWILL - GROUP (CONTINUED)

Impairment testing for cash-generating units containing goodwill (continued)

CGU 1

Sensitivity to changes in assumptions

CGU 2

Other CGU

8. OTHER INTANGIBLE ASSETS - GROUP

Rights to share rental proceeds of telecommunication towers RM

Cost

161,822,195

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8. OTHER INTANGIBLE ASSETS - GROUP (CONTINUED)

Rights to share rental proceeds of telecommunication towers RM

Amortisation

143,110,743

Carrying amounts

18,711,452

8.1 Other intangible assets comprise:

8.2 Impairment testing of rights to share rental proceeds of telecommunication towers

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9. TRADE AND OTHER RECEIVABLES


Non-current

Non-trade

3,018,130 - -

Subsidiaries - - 116,437,438- - (2,610,000)

- - 113,827,438

Non-current total 3,018,130 113,827,438

Current

Trade

86,200,247 - -(3,233,626) - -

82,966,621 - -

Amount due from contract customers 5,063,270 - -

40,689,333 - -

45,752,603 - -

Subtotal 128,719,224 - -

Non-trade

5,857,469 7,258,393(1,373,332) - -

4,484,137 7,258,393

Subsidiaries - - 92,911,360- - (6,198,480)

- - 86,712,880

Subtotal 4,484,137 93,971,273

133,203,361 93,971,273

136,221,491 207,798,711

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9. TRADE AND OTHER RECEIVABLES (CONTINUED)

year.

2015Group RM

Current

Non-current

2016 2015Group RM RM

155,794,273(152,403,072)

3,391,201

Amount due from contract customers 5,063,270

(1,672,069)

3,391,201

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9. TRADE AND OTHER RECEIVABLES (CONTINUED)


18,055

- contributions to state plans 25,356238,768

-Rental of premises 11,200

146

2015Group RM

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10. OTHER INVESTMENTS


Non-current

3,422 3,422225,000 - -

- - -

228,422 3,422

Representing items:225,000 - -

3,422 3,422

11. DEFERRED TAX

Recognised deferred tax

Assets Liabilities Net 2016 2015 2016 2015 2016 2015Group RM RM RM RM RM RM

- (10,340,629) (10,340,629)1,387,573 - - 1,387,573

174,000 - - 174,000

41,000 - - 41,000884,000 (1,739,000) - (855,000)

2,486,573 (12,079,629) (9,593,056)

(194,000) 194,000 - -

2,292,573 (11,885,629) (9,593,056)

Company

- - (1,739,000) - (1,739,000) -

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11. DEFERRED TAX (CONTINUED) Recognised deferred tax (continued)

Recognised in other Recognised compre- At Recognised Acquisition

1.4.2014 or loss income 1.4.2015 or loss subsidiary 31.3.2016 Group RM RM RM RM RM RM RM

(10,340,629)1,387,573

174,000

41,000(855,000)

(9,593,056)

Company

(1,739,000)

(Note 25)

Unrecognised deferred tax assets


10,124,000 2,469,00020,881,000 6,273,0008,738,000 - -

39,743,000 8,742,000

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12. INVENTORIES - GROUP

2016 2015 RM RM

At cost:20,407,75122,382,947

42,790,698

At net realisable value:286,413

Total 43,077,111

13. PROPERTY DEVELOPMENT COSTS - GROUP

RM

At 1 April 2014

Additions


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13. PROPERTY DEVELOPMENT COSTS - GROUP (CONTINUED)

RM

Additions

At 31 March 2016

176,489,394115,286,236

291,775,630(115,126,727)

176,648,903

Security

2016 2015 RM RM

1,771,332

14. DEPOSITS AND PREPAYMENTS


Deposits 1,733,525 373,347Prepayments 1,879,150 91,033

3,612,675 464,380

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15. DERIVATIVE FINANCIAL ASSETS/LIABILITIES - GROUP

2016 2015 Assets Liabilities Assets Liabilities RM RM RM RM

- (327,065)

at maturity.

16. CASH AND CASH EQUIVALENTS


77,986,612 20,009,16518,529,554 249,705

17,705 - -

96,533,871 20,258,8702,009,517 2,009,517 -

98,543,388 22,268,387

17. ASSET CLASSIFIED AS HELD FOR SALE - GROUP

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18. CAPITAL AND RESERVES

18.1 Share capital

Group and Company 2016 2015 Amount Number of Amount Number of RM shares RM shares

Authorised:100,000,000 200,000,000

Issued and fully paid: 66,666,666 133,333,332

18.2 Reserves


24,867,211 - -

(1,145,157) - -(4,600,545) (4,600,545)

4,849 4,849314,780,315 155,428,518

333,906,673 150,832,822

Foreign exchange translation reserve - Group

Treasury shares

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18. CAPITAL AND RESERVES (CONTINUED)

18.2 Reserves (continued)

Fair value reserve

Revaluation reserve

19. LOANS AND BORROWINGS


Non-currentFinance lease liabilities 3,128,880 295,417Term loans- Unsecured 16,071,428 16,071,428- Secured 27,281,962 - -

Non-current total 46,482,270 16,366,845

CurrentFinance lease liabilities 1,315,410 135,452

27,388,000 - -Term loans- Unsecured 7,142,857 7,142,857- Secured 193,714 - -

5,000,000 - - -

41,039,981 7,278,309

Total 87,522,251 23,645,154

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119

19.

LOA

NS

AN

D BO

RRO

WIN

GS

(CO

NTIN

UED)

19.1

Fin

ance

leas

e lia

bilit

ies

2016

20

15

Pres

ent

Pres

ent

Fu

ture

valu

e of

Fu

ture

valu

e of

m

inim

um

m

inim

um

min

imum

min

imum

le

ase

le

ase

leas

e

leas

e

paym

ents

In

tere

st

paym

ents

pa

ymen

ts

Inte

rest

pa

ymen

tsG

roup

RM

RM

RM

RM

RM

RM

1,51

9,90

4 20

4,49

4 1,

315,

410

2,75

3,23

2 22

8,50

1 2,

524,

731

632,

476

28,3

27

604,

149

4,

905,

612

461,

322

4,44

4,29

0

Com

pany

152,

328

16,8

76

135,

452

277,

829

27,1

18

250,

711

45,5

73

867

44,7

06

47

5,73

0 44

,861

43

0,86

9

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19. LOANS AND BORROWINGS (CONTINUED)

19.2 Security

Company

Unsecured term loan

Subsidiaries

Secured term loan no. 1


inter alia


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19. LOANS AND BORROWINGS (CONTINUED)

19.2 Security (continued)

Subsidiaries (continued)

Other banking facilities

Finance lease liabilities

20. TRADE AND OTHER PAYABLES


TradeTrade payables (Note 20.1) 35,809,757 - -Amount due to contract customers

1,672,069 - -6,065,888 - -

43,547,714 - -

Non tradeSubsidiaries (Note 20.2) - - 42,304,235

42,000 - -21,242,183 3,619,25314,411,084 280,981

7,263,855 - -- - -

42,959,122 46,204,469

Total 86,506,836 46,204,469

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20. TRADE AND OTHER PAYABLES (CONTINUED)

and repayable on demand.

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21. REVENUE


59,956,143 - -191,831,333 - -

21,339,189 - -

24,355,807 - -86,829,512 - -

- - 7,772,920- - 248 151- - 8,102,947

384,311,984 15,876,115

22. RESULTS FROM OPERATING ACTIVITIES


Results from operating activities are arrived at after charging:

- audit fees318,000 116,000

44,408 - -42,000 - -

- non-audit fees17,000 17,00075,720 11,550

2,912 - - -239,150 - -

527,662 - - -- - -

174,759 - -

10,680,122 - -41,658 - -

- prepaid lease payments (Note 4) 119,136 - -1,324,551 - - -

9,308,344 457,300

- - 846 -2,500 - - -

- a subsidiary 1,702,250 - - -

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22. RESULTS FROM OPERATING ACTIVITIES (CONTINUED)


Results from operating activities are arrived at after charging: (continued)

99,487 4,625611,010 - -

2,833,612 566,100 Rental of land 949,641 - -

- realised - - - - unrealised 320 - 320

currency contracts 360,550 - - - Results from operating activities are arrived at after crediting:

- - -

- - 7,772,920248 151 248 151

219,679 -

- realised 162,596 - - - unrealised 425,155 - -

32,504 -120,000 912,000

474,730 - -239,253 - -35,296 - - -


4,480,637 688,709

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23. INTEREST INCOME AND INTEREST EXPENSES


- term deposits 2,807,929 837,621- debentures 311,409 - -

312,253 - -- subsidiaries - - 11,914,940

3,431,591 12,752,561

3,431,591 12,752,561

or loss6,242,582 1,646,707

817,434 - -- subsidiaries - - 1,710,401

7,060,016 3,357,108

5,288,538 3,357,108

1,771,332 - -

146 - -

Total 7,060,016 3,357,108

24. COMPENSATIONS TO KEY MANAGEMENT PERSONNEL


Directors of the Company

- Fees 389,613 389,6133,469,433 2,108,413

3,859,046 2,498,026

WEI

DA

(M) B

HD. (

5047

47-W

)


126

24. COMPENSATIONS TO KEY MANAGEMENT PERSONNEL (CONTINUED) Group Company 2016 2015 2016 2015 RM RM RM RM

Other key management personnel

- Fees 161,302 - - 3,792,154 1,587,245

3,953,456 1,587,245

Total 7,812,502 4,085,271

25. TAX EXPENSE


Malaysian - current year 13,273,794 - - prior years 1,195,986 (10,273)

- current year 108,963 - -

14,578,743 (10,273)

- current year 2,130,266 1,739,000 - - prior years (342,000) - - 1,788,266 1,739,000 -

16,367,009 1,728,727

Reconciliation of tax expense

26,115,164 7,446,18016,367,009 1,728,727

42,482,173 9,174,907

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127

25. TAX EXPENSE (CONTINUED) Reconciliation of tax expense (continued)


10,196,000 2,202,000

jurisdictions (206,037) - -

- - -(494,000) (494,000)

3,001,060 - -- - -

3,098,000 31,000- -

(82,000) - - 15,513,023 1,739,000

853,986 (10,273)

16,367,009 1,728,727

Budget 2014.

26. EARNINGS PER ORDINARY SHARE - GROUP

Basic/Diluted earnings per ordinary share

2016 2015 RM RM

26,022,909

WEI

DA

(M) B

HD. (

5047

47-W

)


128

26. EARNINGS PER ORDINARY SHARE - GROUP (CONTINUED)

Weighted average number of ordinary shares

2016 2015

133,333,332

(6,438,700)

126,894,632(133)

126,894,499

20.51

27. DIVIDENDS

27.1 Dividends per ordinary share

Company 2016 2015

3.00

27.2 Dividends recognised

Total Sen per share amount Date of

3.00 3,806,836

2015

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28. CAPITAL EXPENDITURE COMMITMENTS


Property, plant and equipment

Within one year

5,964,000 139,400214,809 - -

6,178,809 139,400

29. OPERATING SEGMENTS

(a) Manufacturing

(b) Works

infrastructure

(c) Property development

(d) Others

Segment assets and liabilities

Geographical segments and major customers

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DA

(M) B

HD. (

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29. OPERATING SEGMENTS (CONTINUED)

Property Manufacturing Works development Others Consolidated2016 RM RM RM RM RM

Segment results

customers 191,831,333 84,311,950 86,829,512 21,339,189 384,311,984

24,728,463 9,794,063 6,809,390 3,665,286 44,997,202

Unallocated corporate (2,405,048)

associate (109,981)

42,482,173(16,367,009)

year 26,115,164

income 2,053,640

28,168,804(1,170,520)

26,998,284

Depreciation and amortisation 8,274,222 10,836,269 424,627 614,141 20,149,259

3,507,926 557,875 1,178,652 44,085 5,288,538Interest income (2,242,243) (888,393) (95,062) (205,893) (3,431,591)

impairment loss on74,716 (21,784) - - 52,932

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Property Manufacturing Works development Others Consolidated2015 RM RM RM RM RM

Segment results

Unallocated corporate

__________

Depreciation and

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Geographical segments

Malaysia Other countries Consolidated 2016 2015 2016 2015 2016 2015 RM RM RM RM RM RM

(see Note 21) 377,911,568 6,400,416 384,311,984

Major customers

30. FINANCIAL INSTRUMENTS

Carrying amount L&R/(FL) AFS FVTPL-DUIR2016 RM RM RM RM

Financial assets

Group228,422 - 228,422 -

131,158,221 131,158,221 - -98,543,388 98,543,338 - -

Company3,422 - 3,422 -

207,798,711 207,798,711 - -22,268,387 22,268,387 - -


Group(87,522,251) (87,522,251) - -(84,792,767) (84,792,767) - -

(327,065) - - (327,065)

Company(23,645,154) (23,645,154) - -(46,204,469) (46,204,469) - -

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30. FINANCIAL INSTRUMENTS (CONTINUED)

Carrying amount L&R/(FL) AFS FVTPL-DUIR2015 RM RM RM RM

Financial assets

Group

Company


Group

Company


Financial instruments at FVTPL-DUIR (360,550) - -(62) 112 (62) 112

3,966,090 12,752,241 FL (5,288,538) (3,357,108)

(1,683,060) 9,395,071

WEI

DA

(M) B

HD. (

5047

47-W

)


134


30.3 Financial risk management

(a) Credit risk

Receivables

Risk management objectives, policies and processes for managing the risk

Exposure to credit risk, credit quality and collateral


Current

- - 176,872,513

contract customer in Malaysia 39,652,990 - -

39,652,990 176,872,513

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30.3 Financial risk management (continued)

(a) Credit risk (continued)

Receivables (continued)

Exposure to credit risk, credit quality and collateral (continued)


Malaysia 135,156,323 207,798,7111,065,168 - -

Syrian Arab Republic (net of impairment loss) - - -

136,221,491 207,798,711

Impairment losses

Group Company 2016 2015 2016 2015

Age of debts RM RM RM RM

Not past due 60,448,368 12,550 -9,950,203 -8,527,017 - -3,439,020 - -4,474,325 - -

48,926,246 - -

135,765,179 12,550

impairment loss (4,606,958) - -

Total 131,158,221 12,550

counterparties.

WEI

DA

(M) B

HD. (

5047

47-W

)


136




Receivables (continued)

Impairment losses (continued)

Group RM

4,606,958

Financial guarantees


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Financial guarantees (continued)

Exposure to credit risk, credit quality and collateral


statements 63,522,00030,350,000

93,872,000

(b) Liquidity risk


WEI

DA

(M) B

HD. (

5047

47-W

)


138

30.

FIN

AN

CIA

L IN

STRU

MEN

TS (C

ON

TINUE

D)

30.3

Fin

anci

al ri

sk m

anag

emen

t (co

ntin

ued)

(b)

Liqui

dity

risk

(con

tinue

d)

Mat

urity

ana

lysis

C

ontra

ctua

l C

ontra

ctua

l

Mor

e

C

arry

ing

in

tere

st

cash

Un

der

1-2

2-5

than

Gro

up

RM

%

RM

RM

RM

RM

RM

2016

84,7

92,7

67

- 85

,054

,440

84

,992

,102

62

,338

-

-

- F

inan

ce le

ase

liabi

litie

s 4,

444,

290

3.40

- 6.

01

4,90

5,61

2 1,

519,

904

1,37

2,46

2 1,

380,

770

632,

476

- T

erm

loan

s

- U

nsec

ured

23

,214

,285

5.

35 -

5.45

25

,322

,917

8,

229,

613

7,84

0,32

7 9,

252,

977

-

- S

ecur

ed

27,4

75,6

76

4.70

- 5.

90

31,8

69,4

32

2,80

5,08

5 21

,847

,046

1,

327,

788

5,88

9,51

3

acce

ptan

ces

27,3

88,0

00

4.01

- 4.

51

27,3

88,0

00

27,3

88,0

00

- -

-5,

000,

000

5.36

5,

000,

000

5,00

0,00

0 -

- -

172,

315,

018

17

9,54

0,40

1 12

9,93

4,70

4 31

,122

,173

11

,961

,535

6,

521,

989

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139

30.

FIN

AN

CIA

L IN

STRU

MEN

TS (C

ON

TINUE

D)

30.3

Fin

anci

al ri

sk m

anag

emen

t (co

ntin

ued)

(b)

Liqui

dity

risk

(con

tinue

d)

Mat

urity

ana

lysis

(con

tinue

d)

C

ontra

ctua

l C

ontra

ctua

l

Mor

e

C

arry

ing

in

tere

st

cash

Un

der

1-2

2-5

than

Gro

up (c

ontin

ued)

RM

%

RM

RM

RM

RM

RM

2015

- T

erm

loan

s

WEI

DA

(M) B

HD. (

5047

47-W

)


140

30.

FIN

AN

CIA

L IN

STRU

MEN

TS (C

ON

TINUE

D)

30.3

Fin

anci

al ri

sk m

anag

emen

t (co

ntin

ued)

(b)

Liqui

dity

risk

(con

tinue

d)

Mat

urity

ana

lysis

(con

tinue

d)

C

ontra

ctua

l C

ontra

ctua

l

Mor

e

C

arry

ing

in

tere

st

cash

Un

der

1-2

2-5

than

Com

pany

RM

%

RM

RM

RM

RM

RM

2016

3,90

0,23

4 -

3,90

0,23

4 3,

900,

234

- -

-Su

bsid

iarie

s 42

,304

,235

5.

60

42,3

04,2

35

42,3

04,2

35

- -

-

- F

inan

ce le

ase

liabi

litie

s 43

0,86

9 4.

46 -

4.62

47

5,73

0 15

2,32

8 11

3,52

5 16

4,30

4 45

,573

- U

nsec

ured

term

loan

23

,214

,285

5.

35 -

5.45

25

,322

,916

8,

229,

613

7,84

0,32

7 9,

252,

976

--

- 35

8,60

2,60

0 35

8,60

2,60

0 -

- -

69,8

49,6

23

43

0,60

5,71

5 41

3,18

9,01

0 7,

953,

852

9,41

7,28

0 45

,573

corp

orat

e gu

aran

tees

util

ised

), w

hich

will

only

be

enca

shed

in th

e ev

ent o

f def

ault

by th

e su

bsid

iarie

s an

d d

o no

t hav

e an

impa

ct o

n

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PORT

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141

30.

FIN

AN

CIA

L IN

STRU

MEN

TS (C

ON

TINUE

D)

30.3

Fin

anci

al ri

sk m

anag

emen

t (co

ntin

ued)

(b)

Liqui

dity

risk

(con

tinue

d)

Mat

urity

ana

lysis

(con

tinue

d)

C

ontra

ctua

l C

ontra

ctua

l

Mor

e

C

arry

ing

in

tere

st

cash

Un

der

1-2

2-5

than

Com

pany

(con

tinue

d)

RM

%

RM

RM

RM

RM

RM

2015

corp

orat

e gu

aran

tees

util

ised

), w

hich

will

only

be

enca

shed

in th

e ev

ent o

f def

ault

by th

e su

bsid

iarie

s an

d d

o no

t hav

e an

impa

ct o

n

WEI

DA

(M) B

HD. (

5047

47-W

)


142



(c) Market risk

(i) Currency risk


Exposure to foreign currency risk

2016 2015 Denominated in Denominated inGroup USD SYP USD SYP

- - 5,454,326 -

(6,034,654) -

(327,065) -

position (907,393) -

Currency risk sensitivity analysis

remain constant.

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143



(c) Market risk (continued)

(i) Currency risk (continued)

Currency risk sensitivity analysis (continued)


USD 90,700SYP -

(ii) Interest rate risk


funds.

Exposure to interest rate risk


Fixed rate instrumentsFinancial assets 85,014,259 22,018,682Financial liabilities (36,832,290) (430,869)

Floating rate instrumentsFinancial assets - - 208,843,894Financial liabilities (50,689,961) (65,518,520)

WEI

DA

(M) B

HD. (

5047

47-W

)


144



(c) Market risk (continued)

(ii) Interest rate risk (continued)

Interest rate risk sensitivity analysis

constant.

100 bp 100 bp increase decreaseGroup RM RM

- 2016 (507,000) 507,000

Company

- 2016 1,433,000 (1,433,000)

(iii) Other price risk


Equity price risk sensitivity analysis

presented.

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145


30.4 Fair value information

Note 2(c)(ii)(d).

Fair value of Fair value of

carried at not carried fair value at fair value Total Carrying Level 1 Level 2 Total Level 3 Total fair value amountGroup RM RM RM RM RM RM RM

2016 Financial assets

3,422 - 3,422 - - 3,422 3,422

- Non-current - - - 3,018,130 3,018,130 3,018,130 3,018,130

3,422 - 3,422 3,018,130 3,018,130 3,021,552 3,021,552


contracts - (327,065) (327,065) - - (327,065) (327,065)Finance lease liabilities - - - (4,457,613) (4,457,613) (4,457,613) (4,444,290)Term loans - Unsecured - - - (23,214,285) (23,214,285) (23,214,285) (23,214,285) - Secured - - - (27,475,676) (27,475,676) (27,475,676) (27,475,676)

- - - (5,000,000) (5,000,000) (5,000,000) (5,000,000)

- (327,065) (327,065) (60,147,574) (60,147,574) (60,474,639) (60,461,316)

WEI

DA

(M) B

HD. (

5047

47-W

)


146


30.4 Fair value information (continued)


carried at not carried at fair value fair value Total Carrying Level 1 Total Level 3 Total fair value amountCompany RM RM RM RM RM RM

2016

Financial assets3,422 3,422 - - 3,422 3,422

Financial liabilitiesUnsecured term loans - - 23,214,285 23,214,285 23,214,285 23,214,285Finance lease liabilities - - 440,426 440,426 440,426 430,869

- - 23,654,711 23,654,711 23,654,711 23,645,154


carried at not carried fair value at fair value Total Carrying Level 1 Level 2 Total Level 3 Total fair value amountGroup RM RM RM RM RM RM RM

2015

Financial assets

Financial liabilitiesFinance lease

Term loans

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147




carried at not carried at fair value fair value Total Carrying Level 1 Total Level 3 Total fair value amountCompany RM RM RM RM RM RM

2015

Financial assets


Policy on transfer between levels

Level 1 fair value

Level 2 fair value

Derivatives

Transfers between Level 1 and Level 2 fair values

Level 3 fair value

purposes.

WEI

DA

(M) B

HD. (

5047

47-W

)


148



Type Valuation technique inputs and fair value measurement

Group

Company

31. ACQUISITION AND DISPOSAL OF BUSINESS OPERATION, SUBSIDIARIES AND NON-CONTROLLING INTERESTS

(i) Acquisition of new subsidiaries


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149

31. ACQUISITION AND DISPOSAL OF BUSINESS OPERATION, SUBSIDIARIES AND NON-CONTROLLING INTERESTS (CONTINUED)

(i) Acquisition of new subsidiaries (continued)

Financial year ended 31 March 2016 (continued)

carrying amounts 2016 RM

6,000,0002,783

13,873(273,141)

(11,000)

Net assets 5,732,515267,485

Total consideration 6,000,000(736,095)

5,263,905(13,873)

5,250,032


WEI

DA

(M) B

HD. (

5047

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)


150


(i) Acquisition of new subsidiaries (continued)

Financial year ended 31 March 2015 (continued)


(ii) Changes in investment in existing subsidiaries



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151


(ii) Changes in investment in existing subsidiaries (continued)



(iii) Acquisition of business operation


(iv) Disposal of a subsidiary



9,245,970Deposits and prepayments 1,120

16,717,904922

(25,566,559)(83,865)

Net assets 315,4921,702,758

Loss on disposal of a subsidiary (1,702,250)

316,000(16,717,904)

(16,401,904)

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(M) B

HD. (

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)


152

32. CAPITAL MANAGEMENT

33. CONTINGENCIES - UNSECURED


- - 93,872,000

of projects 18,222,000 - -

18,222,000 93,872,000

34. RELATED PARTIES

Identity of related parties

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153

34. RELATED PARTIES (CONTINUED)

Transactions with subsidiaries


Nature of transaction(7,772,920)(8,102,947)

(912,000)Interest income (11,914,940)

1,710,401

Transactions with companies in which certain Directors of the Company have interests


Nature of transactionRental of premises 285,000 -

Transactions with certain directors and key management personnel of the Company and the Group


Nature of transaction

(3,065,317) - -Rental of premise - - -

3,600 - - -6,000,000 - - -

Disposal of a subsidiary (316,000) - - -

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DA

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HD. (

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)


154

34. RELATED PARTIES (CONTINUED)

Transactions with a company in which a director of a subsidiary has interests


Nature of transaction89,000 - - -

2,700 - - -3,000 - - -

Transaction with a person or a director who are substantial shareholders of the Group and of a corporate shareholder of the Group


Nature of transaction

(1,171,166) - -

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155

35. SUPPLEMENTARY FINANCIAL INFORMATION ON THE BREAKDOWN OF REALISED AND UNREALISED PROFITS OR LOSSES


and its subsidiaries- Realised 348,477,974 155,428,518- Unrealised (3,005,484) - -

345,472,490 155,428,518

associate- Realised (198,098) - -

345,274,392 155,428,518

(30,494,077) - -

314,780,315 155,428,518

WEI

DA

(M) B

HD. (

5047

47-W

)15

6

LIST OF PROPERTIES

Location

Arab-Malaysian

Arab-Malaysian

Arab-Malaysian

Usage

S

Tenure Date of Land Area

(Acres)

2.15

0.64

0.64

0.64

1.00

Age of Building

(year)

20

14

6

11

6

17

Carrying Amount

as at 31.03.2016

(RM)

Date of Acquisition/

Last Revaluation

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615

7

DISTRIBUTION SCHEDULE OF ORDINARY SHARES

No. of Holders Holdings Total Holdings %*

#

TOTAL 2,964 126,894,332 100.00

#

June 2016.

LIST OF THIRTY LARGEST SECURITIES ACCOUNTS HOLDERS

No. Name No. of Shares Held %*

June 2016.

ANALYSIS OF SHAREHOLDINGS AS AT 17 JUNE 2016

WEI

DA

(M) B

HD. (

5047

47-W

)15

8

ANALYSIS OF SHAREHOLDINGS AS AT 17 JUNE 2016

LIST OF SUBSTANTIAL SHAREHOLDERS

No. of Shares Held No. Name Direct %(a) Indirect %(a)

(b)

(c)

Notes:

(b) Deemed interested by virtue of his substantial shareholding in Weida Management Sdn. Bhd..

in Weida Management Sdn. Bhd..

DIRECTORS’ INTERESTS

No. of Shares Held No. Name Direct %(a) Indirect %(a)

(b)

Notes:

(b) Deemed interested by virtue of his substantial shareholding in Weida Management Sdn. Bhd. and his children in the Company.

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9

NOTICE IS HEREBY GIVEN

A G E N D A

Ordinary Business

Special Business

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

Resolution 1

Resolution 2

Resolution 3

Resolution 4

Resolution 5

Resolution 6

ANNUAL GENERAL MEETING

WEI

DA

(M) B

HD. (

5047

47-W

)16

0

ANNUAL GENERAL MEETING

Proposed renewal of authority for purchase of own shares by the Company

Proposed amendments to the Company’s Articles of Association

Resolution 7

Resolution 8

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616

1

NOTICE IS ALSO HEREBY GIVEN

October 2016.

By Order of the Board of Directors

Voon Jan Moi (MAICSA 7021367)Wang Tin Ngee (MIA 11670)

Explanatory notes on special business

(a) Ordinary resolution in relation to authority to issue shares pursuant to Section 132D of the Companies Act, 1965

cost and time.

(b) Ordinary resolution in relation to proposed renewal of authority for purchase of own shares by the Company

(c) Special resolution in relation to proposed amendments to the Company’s Articles of Association

Notes:

ENTITLEMENT AND PAYMENT

WEI

DA

(M) B

HD. (

5047

47-W

)16

2

Article

Article 66(Evidence of passing resolution)

Article 67(How a poll is to be taken)

(c) by any Member or Members present in

Proposed Amendments

poll.

poll been carried unanimously by a

(a)

(c) by any Member or Members

(d) by a Member or Members

PROPOSED AMENDMENTSTO THE COMPANY’S ARTICLES OF ASSOCIATION

APPENDIX A

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616

3

Article

Article 67(How a poll is to be taken) (continued)

Article 68(Chairman’s casting vote)

Article 69(Voting on a poll)

Proposed Amendments


WEI

DA

(M) B

HD. (

5047

47-W

)16

4

Article

Article 71(Vote of Member of unsound mind and person entitled to transfer)

Article 72(Member barred from voting while call unpaid )

Article 74(Instrument

be in writing)

and unpaid.

Proposed Amendments

or attorney and any person entitled

corporation’s common seal or under


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616

5

Article

Article 76(Instrument

Article 78(Validity of vote

used.

Proposed Amendments


WEI

DA

(M) B

HD. (

5047

47-W

)16

6

Article

Article 134(Presentation

statements)

Proposed Amendments

Directors’ and auditors’ reports

auditors’ report and Directors’

form or in electronic format or

documents are sent in electronic

electronic media permitted under


I/We (Name in full) (IC/Passport/Company No.) of

(Address)being a member/members of the abovenamed Company hereby appoint

(Name in full) (IC/Passport No.) of

(Address)

My/our proxy is to vote as indicated below:

No. Resolutions For Against

Number of shares held

CDS Account no.

Dated this day of 2016 Signature of shareholder(s)/common seal

Form of Proxy

Notes :

or failing him/her, the Chairman of the meeting as my/our proxy to vote for me/us and on my/our behalf at the Seventeenth Annual General Meeting of the Company to be held at Imperial Hotel, Jalan Datuk Tawi Sli, 93250 Kuching, Sarawak on Friday, 26 August 2016 at 9.30 a.m. and any adjournment thereof.

Please indicate with an “X” in the appropriate box against each resolution how you wish your vote to be cast. If you do not indicate how you wish your proxy to vote on any resolution, the proxy shall vote as he thinks fit, or at his discretion, abstain from voting.

1. To declare and approve the payment of a first and final single-tier exempt dividend of 3.00 sen per ordinary share in respect of the financial year ended 31 March 2016.

2. To approve the payment of directors’ fees for the financial year ending 31 March 2017.

3. To re-elect YBhg. Dato’ Lee Choon Chin as director.4. To re-elect Mr. Jee Hon Chong as director.5. To re-appoint Messrs. KPMG as auditors.6. To renew the authority to issue shares pursuant to Section 132D of the Companies

Act, 19657. To renew the authority for purchase of own shares by the Company.8. To approve the proposed amendments made to the Articles of Association of the

Company.

1. A proxy may but need not be a member of the Company and the provisions of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company.

2. To be valid, the duly completed proxy form must be deposited at the registered office of the Company at Wisma Hock Peng, Ground Floor to 2nd Floor, 123, Green Heights, Jalan Lapangan Terbang, 93250 Kuching, Sarawak not less than 48 hours before the time set for holding the meeting or any adjournment thereof.

3. A member shall be entitled to appoint more than one (1) proxy to attend and vote at the same meeting provided that the provisions of Section 149(1)(c) of the Companies Act, 1965 are complied with.

4. Where a member appoints more than one (1) proxy, the appointment shall be invalid unless he specifies the proportions of his shareholdings to be represented by each proxy.

5. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one (1) securities account (“omnibus account”), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds. An exempt authorised nominee refers to an authorised nominee defined under the Securities Industry (Central Depositories) Act 1991 (“SICDA”) which is exempted from compliance with the provisions of subsection 25A(1) of SICDA.

6. If the appointor is a corporation, the proxy form must be executed under its common seal or under the hand of an officer or attorney duly authorised.

7. A depositor whose name appears in the Record of Depositors as at 22 August 2016 shall be regarded as a member of the Company entitled to attend this Annual General Meeting or appoint a proxy to attend, speak and vote on his behalf.

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AFFIX STAMP

The Company Secretary

WEIDA ( M) BHD.(Company No. 504747-W)

Wisma Hock PengGround Floor to 2nd Floor123, Green Heights, Jalan Lapangan TerbangP.O. Box 2424, 93748 Kuching, Sarawak

REPUBLIC OF THE PHILIPPINES www.weida.com.ph

MALAYSIA www.weida.com.my

MALAYSIA

REPUBLIC OF

THE PHILIPPINES

SARAWAK

Headquarter:Wisma Hock Peng, Ground to 2nd Floor,123, Green Heights,Jalan Lapangan Terbang,93250 Kuching, Sarawak.P. O. Box 2424,93748 Kuching, Sarawak.Tel : +6082 456 456Fax : +6082 459 000Email : [email protected]

Manufacturing plant:Lot 472, Block 8, MTLD,Sejingkat Industrial Park,Jalan Bako, Petra Jaya,93050 Kuching, Sarawak.P. O. Box 1807,93736 Kuching, Sarawak.Tel : +6082 435 435Fax : +6082 433 933Email : [email protected]

Kuala Baram Land DistrictJalan Maigold, Taman Desa Senadin,

Lot 1969, Block 5,

98100 Miri, Sarawak.Tel : +6016 879 3322

PENINSULAR MALAYSIA

Lot 3.05, Level 3,1 First Avenue, Bandar Utama,47800 Petaling Jaya,Selangor Darul Ehsan.Tel : +603 7950 9688Fax : +603 7950 9788Email : [email protected]

No.3, Lorong Teknologi 3/4B, Nouvelle Industrial Park Lot 10, 47810 Petaling Jaya, Selangor Darul Ehsan.Tel : +603 6143 0988 Fax : +603 6143 0999 Email : [email protected]

Manufacturing plant:Lot 109, Jalan Permata 1,Arab-Malaysian Industrial Park,71800 Nilai,Negeri Sembilan Darul Khusus.Tel : +606 799 0990Fax : +606 799 0949Email : [email protected]

SABAH

2-9-1 & 2-9-2, 8th Floor, Wawasan Plaza,88000 Kota Kinabalu, Sabah.P. O. Box 21276, 88770 Luyang,Kota Kinabalu, Sabah.Tel : +6088 264 555Fax : +6088 262 525Email : [email protected]

Manufacturing plant:Lot 57, SEDCO Light Industrial Estate,Lok Kawi, 88801 Kota Kinabalu, Sabah.Tel : +6088 752 996Fax : +6088 752 998Email : [email protected]

TB12882 & 12883,SEDCO Light Industrial Estate,Mile 3, Jalan Apas, 91000 Tawau, Sabah.Tel : +6089 913 678Fax : +6089 913 679Email : [email protected]

MANILA

3/F, BT & T Center,20E. Rodriguez Jr. Avenue (C-5)Brgy. Bagumbayan, Libis,Quezon City 1110, Philippines.Tel : +632 706 2002, 656 2002Fax : +632 706 4966Email : [email protected]

Manufacturing plant:Lot 11 & 13, Block 3,Dasmarinas Technopark,Governor’s Drive,Dasmarinas Cavite 4114, Philippines.Tel : +632 584 4858, 584 4859Fax : +632 584 4649

cover rationale - weida · ended (“fye”) 31 march 2016. financial highlights fye 31 march 2016...

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