OKA - AR - 2020 Fiverr

OKA CORPORATION BHD 200001017334 (519941-H)
No. 6, Lebuhraya Chateau, Off Pesiaran Kampar,

K
30250 Ipoh, Perak, Malaysia. OKA CORPORATION BHD
200001017334 (519941-H)
www.oka.com.my
ANNUAL REPORT 2020 LAPORAN TAHUNAN Annual Report / Laporan Tahunan 2020
ANNUAL REPORT 2020
CONTENTS
Corporate Profile 2
Notice of Annual General Meeting 3-5
Notice of Dividend Entitlement And Payment 4
Statement Accompanying Notice of Annual General Meeting 6
Corporate Information 7
Profile of the Board of Directors 8-9
Profile of Key Senior Management 10
Audit Committee Report 11 - 13
Corporate Governance Overview Statement 14 - 26
Statement on Risk Management and Internal Control 27 - 28
Management Discussion And Analysis 29 - 30
Sustainability Statement 31 - 34
Analysis of Shareholdings 35 - 36
List of Properties 37 - 38
Reports & Financial Statements 38 - 105
Proxy Form Enclosed
1
OKA CORPORATION BHD
CORPORATE PROFILE
Sungai Petani
(established in year 2009)
Batu Gajah
FACTORIES
IN
Kuantan
Batu Gajah Perdana MALAYSIA (established in year 2003)
Nilai
Senai
Corporate Vision Corporate Mission Corporate Culture / Core Value
OKA Group’s vision is to be the To achieve organizational goals • Customer satisfaction

leading integrated manufacturer through: • Integrity and collaborative
of precast concrete products in teamwork
South East Asia through: • On-going research and • Innovation
development • Quality product & service
• Supply of high quality and • Committed pool of
value added products to professional and skilled
meet highest customer personnel
satisfaction • Serving esteemed
• Organizational excellence customers through 5
and professional branches positioned
commitment at strategic locations
• Product innovation and throughout the country.
solutions for customer
needs.
2
ANNUAL REPORT 2020
NOTICE OF ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN THAT the Twentieth Annual General Meeting of OKA Corporation Bhd will be held at
Lavender Hall – Level 3, Kinta Riverfront Hotel & Suites, Kinta Riverfront, Jalan Lim Bo Seng, 30000 Ipoh, Perak
Darul Ridzuan on Tuesday, 29 September 2020 at 10.30 a.m. for the following purposes:
ORDINARY BUSINESS
1. To receive the Audited Financial Statements for the financial year ended 31 March Please refer to
2020 together with the Reports of the Directors and Auditors thereon. Explanatory Note A
2. To declare a final single-tier dividend of 2.0 sen per share in respect of the financial (Resolution 1)
year ended 31 March 2020.
3. To approve the payment of Directors’ fees for the financial year ended 31 March (Resolution 2)
2020.
4. To approve the payment of allowances to Non-Executive Directors up to an amount (Resolution 3)

of RM100,000 from the date of 20th Annual General Meeting until the next Annual
General Meeting.
5. To re-elect the following directors who retire pursuant to Rule 21.8 of the Company’s
Constitution, and being eligible, have offered themselves for re-election:-
(i) Mr. Ong Choo Ian (Resolution 4)

(ii) Mr. Chok Hooa @ Chok Yin Fatt, PMP
(Resolution 5)
6. To re-appoint Messrs KPMG PLT as auditors of the Company and to authorise the (Resolution 6)
Directors to fix their remuneration.
Special Business
To consider and, if thought fit, to pass the following Ordinary Resolution with or
without modifications:-
7. Authority to allot and issue shares pursuant to Sections 75 and 76 of the Companies (Resolution 7)
Act 2016
“That pursuant to Sections 75 and 76 of the Companies Act 2016, the Constitution
of the Company and subject to the approvals of the relevant governmental and/
or regulatory authorities, the Directors be and are hereby empowered to allot and
issue shares in the Company, from time to time, upon such terms and conditions,
for such purposes and to such persons whomsoever as the Directors may, in their
absolute discretion deem fit, provided that the aggregate number of shares issued
does not exceed ten percent (10%) of the total number of issued shares of the
Company for the time being, and that such authority shall continue in force until the
conclusion of the next Annual General Meeting of the Company.
And that the Directors be and are also empowered to obtain approval for the listing
of and quotation for the additional shares so issued on Bursa Malaysia Securities
Berhad.”
3
OKA CORPORATION BHD
NOTICE OF ANNUAL GENERAL MEETING (cont’d)
8. Retention of Independent Non-Executive Directors
8.1 “That subject to the passing of Resolution 5, Mr. Chok Hooa @ Chok Yin Fatt, PMP (Resolution 8)
be and is hereby retained as an Independent Non-Executive Director of the
Company.”
8.2 “That Mr. Gan Boon Koo @ Gan Boon Kiu be and is hereby retained as an (Resolution 9)
Independent Non-Executive Director of the Company.”
8.3 “That En Sharifuddin Bin Shoib, AMP be and is hereby retained as an (Resolution 10)
Independent Non-Executive Director of the Company.”
9. To transact any other business of which due notice shall have been given.
NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENT
NOTICE IS ALSO HEREBY GIVEN that a final single-tier dividend of 2.0 sen per share in respect of the financial
year ended 31 March 2020, if approved by the shareholders at the Twentieth Annual General Meeting, will be paid
on 11 December 2020 to shareholders whose names appear in the Record of Depositors at the close of business
on 2 December 2020.
A depositor shall qualify for entitlement to the dividend only in respect of:-
a. Shares transferred into the Depositor’s Securities Account before 4.00 p.m. on 2 December 2020 in respect of
ordinary transfers; and
b. Shares bought on Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of
Bursa Malaysia Securities Berhad.
By Order of the Board
Low Hor Foong (MAICSA 0763512)

Lau Wai Yeen (MIA 11467)
Company Secretaries
Ipoh
1 September 2020
NOTES
1. Appointment of Proxy
1. A member entitled to attend and vote at this general meeting is entitled to appoint a proxy or attorney or
in the case of a corporation, to appoint a duly authorized representative to attend, participate, speak and
vote in his place in accordance with Section 334(1) of the Act. A proxy may but need not be a member of
the Company.
2. A member may appoint not more than two (2) proxies to attend and vote at the same meeting. Where a
member appoints more than one (1) proxy and such appointment shall be invalid unless he specifies the
proportion of his shareholding to be represented by each proxy.
3. Where a member of the Company is an authorised nominee as defined in the Central Depositories Act,
it may appoint not more than two (2) proxies in respect of each securities account it holds with ordinary
shares of the Company standing to the credit of the said securities account and the number of shares to
be represented by each proxy must be clearly indicated.
4
ANNUAL REPORT 2020
NOTICE OF ANNUAL GENERAL MEETING (cont’d)
4. Where a member of the Company is an exempt authorized nominee which holds ordinary shares in
the Company for multiple beneficial owners in one securities account (“omnibus account”), there is no
limit to the number of proxies which the exempt authorized nominee may appoint in respect of each
omnibus account it holds. An exempt authorized nominee refers to an authorized nominee defined under
the Securities Industry (Central Depositories) Act 1991 which is exempted from compliance with the
provisions of subsection 25A(1) of the said Act.
5. The instrument appointing a proxy shall be in writing under the hand of the appointor or his attorney duly
authorized in writing or if such appointor is a corporation, under its Seal or the hand of its attorney or by
a duly authorised officer on behalf of the corporation.
6. To be valid this form duly completed must be deposited at the registered office of the Company not less
than 48 hours before the time for holding the meeting or adjourned meeting at which the person named
in the instrument proposes to vote, or, in the case of a poll, not less than twenty-four (24) hours before
the time appointed for the taking of the poll, and in default the instrument of proxy shall not be treated as
valid.
7. By submitting the duly executed Proxy Form, the member consents to the Company (and/or its agents/
service providers) collecting, using and disclosing the personal data therein in accordance with the
Personal Data Protection Act 2010, for the purpose of the meeting or at any adjournment thereof.
8. Only a depositor whose name appears on the Record of Depositors as at 21 September 2020 shall be
entitled to attend the general meeting or appoint a proxy to attend, speak and vote on his behalf.
2. Explanatory Notes On Ordinary Business
Note A
This agenda item is intended for discussion only as under Section 340(1)(a) of the Companies Act, 2016, the audited
financial statements do not require formal approval of shareholders. As such, this agenda item will not be put
forward for voting.
3. Explanatory Notes On Special Business
(i) The proposed Ordinary Resolution No. 7, if passed, will empower the Directors to allot and issue shares in
the Company up to an amount not exceeding in aggregate 10% of the issued share capital of the Company
for the time being and for such purposes as the Directors consider would be in the best interests of the
Company. This would avoid any delay arising from and cost involved in convening a general meeting to
obtain approval of the shareholders for such issuance of shares. This authority, unless revoked or varied
at a general meeting, will expire at the conclusion of the next Annual General Meeting of the Company.
This general mandate is a renewal of the existing mandate and will provide flexibility to the Company for
allotment of shares for any possible fund raising activities, including but not limited to further placing of
shares, for the purpose of funding future investment project(s), working capital and/or acquisition(s).
As at the date of this notice, no new shares in the Company were issued pursuant to the mandate
granted to the Directors at the last AGM held on 30 August 2019 which will lapse at the conclusion of the
forthcoming AGM.
(ii) The proposed Ordinary Resolution No. 8 to No. 10 are pursuant to Practice 4.2 of the Malaysian Code
of Corporate Governance 2017 and if passed, will allow Mr. Chok Hooa @ Chok Yin Fatt, PMP, Mr. Gan
Boon Koo @ Gan Boon Kiu and En. Sharifuddin Bin Shoib, AMP to continue to act as Independent Non-
Executive Directors of the Company. The full details of the Board’s justifications and recommendations
for the retention of the above three (3) Directors as Independent Non-Executive Directors are set out in
the Corporate Governance Overview Statement in the Annual Report 2020.
Shareholders’ approval for Ordinary Resolutions 8, 9 and 10 will be sought through a two-tier voting
process.
4. Poll Voting
Pursuant to Paragraph 8.29A(1) of the Listing Requirements, all the Resolutions set out in this Notice will be
put to vote by poll.
5
OKA CORPORATION BHD
STATEMENT ACCOMPANYING
NOTICE OF ANNUAL GENERAL MEETING
PURSUANT TO PARAGRAPH 8.27(2) OF THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD
Details of individuals who are standing for election as Directors
No individual is seeking new election as a Director at the forthcoming 20th AGM of the Company
The rest of this page is intentionally left blank.
6
ANNUAL REPORT 2020
CORPORATE INFORMATION
BOARD OF DIRECTORS SHARE REGISTRARS
Independent Non-Executive Chairman Tricor Investor & Issuing House Services Sdn Bhd
Encik Sharifuddin Bin Shoib, AMP Unit 32-01, Level 32, Tower A
Vertical Business Suite, Avenue 3
Group Managing Director Bangsar South, No.8, Jalan Kerinchi
Ir. Ong Koon Ann 59200 Kuala Lumpur
Executive Directors Telephone : 03-27839299

Mdm. Quah Seok Keng Facsimile : 03-27839222
Mr. Ong Choo Ian (redesignated as Group E-mail : [email protected]
Chief Executive Officer w.e.f. 01.07.2020)
Independent Non-Executive Directors REGISTERED OFFICE

Mr. Chok Hooa @ Chok Yin Fatt, PMP
Mr. Gan Boon Koo @ Gan Boon Kiu 6, Lebuhraya Chateau
Off Persiaran Kampar
30250 Ipoh
COMPANY SECRETARIES Perak Darul Ridzuan
Mr. Lau Wai Yeen (MIA 11467) Telephone : 05-2542741, 05-2542745

Ms Low Hor Foong (MAICSA 0763512) Facsimile : 05-2532403, 05-2411851
E-mail : [email protected]
Website : www.oka.com.my
AUDIT COMMITTEE
Chairman SUBSIDIARY COMPANIES

Mr. Chok Hooa @ Chok Yin Fatt, PMP
OKA Concrete Industries Sdn Bhd

Members OKA Engineering & Trading Sdn Bhd
Mr. Gan Boon Koo @ Gan Boon Kiu OKA Readymixed Concrete Sdn Bhd
Encik Sharifuddin Bin Shoib, AMP OKA Steel Sdn Bhd
Real Charisma Sdn Bhd
Pembinaan Cahaya Emas Sdn Bhd
NOMINATION COMMITTEE
Chairman PRINCIPAL BANKERS

Encik Sharifuddin Bin Shoib, AMP
Alliance Bank Malaysia Berhad

Members AmBank (M) Berhad
Mr. Chok Hooa @ Chok Yin Fatt, PMP Hong Leong Bank Berhad
Mr. Gan Boon Koo @ Gan Boon Kiu Malayan Banking Berhad
RHB Bank Berhad
REMUNERATION COMMITTEE
STOCK EXCHANGE LISTING
Chairman
Mr. Gan Boon Koo @ Gan Boon Kiu Bursa Malaysia Securities Berhad
Main Market
Members Sector : Industrial Products & Services
Mr. Chok Hooa @ Chok Yin Fatt, PMP Stock Name : OKA
Encik Sharifuddin Bin Shoib, AMP Stock Code : 7140
AUDITORS
KPMG PLT
Chartered Accountants
Level 18, Hunza Tower
163E, Jalan Kelawei,
10250 Penang, Malaysia.
Telephone : 604-238 2288

Fax No. : 604-238 2222
E-mail : [email protected]
7
OKA CORPORATION BHD
PROFILE OF THE BOARD OF DIRECTORS
SHARIFUDDIN BIN SHOIB, AMP

Independent Non-Executive Chairman
Sharifuddin bin Shoib, aged 72, male, a Malaysian, was appointed to the Board on 30 August 2000 and appointed
as Chairman on 21 November 2002. He holds a Bachelor of Engineering (Mechanical) from Australia which was
obtained in 1974 and became a member of the Institution of Engineers, Malaysia in 1988. He held various positions
in UAC Bhd from 1970 to 1983. In July 1983 he joined Dijaya Corporation Bhd (previously known as Jasa Megah
Industries Bhd) as Factory Manager and was promoted to General Manager and subsequently to Executive Director
from August 1991 to 30 June 1994. Prior to joining Dijaya Corporation Bhd, he was the Deputy Manager in Heavy
Industries Corporation of Malaysia Bhd from January 1983 to July 1983.
He sits on the Boards of Rubberex Corporation (M) Bhd. He is the Chairman of the Nomination Committee, member
of the Audit Committee and Remuneration Committee of the Company. He also holds directorships in several private
limited companies.
He does not have any family relationship with the directors and/or major shareholder of the Company. He has no
conflict of interest and has had no convictions for any offences within the past five years.
ONG KOON ANN

Group Managing Director
Ong Koon Ann, aged 76, male, a Malaysian, was appointed to the Board on 21 February 2002. He is also the
Managing Director of OKA Concrete Industries Sdn Bhd which was founded in 1981. Graduated from Bolton Institute
of Technology in United Kingdom in 1970, he is a Registered Professional Engineer in Malaysia and Singapore and
a Chartered Engineer by profession.
He is a member of the Institution of Civil Engineers and the Chartered Institution of Highways & Transportation,
United Kingdom; Institution of Engineers Malaysia and Institution of Engineers Singapore.
Before he started OKA Concrete Industries Sdn Bhd, he had served as management consultant in a precast concrete
company in 1974 to 1981. Prior to this, he had worked with consultant and construction companies in the United
Kingdom dealing in highway and power station projects in Singapore and Malaysia.
He is Chairman of the Executives Share Option Committee of the Company. He does not have any other directorships
of public companies.
He is the spouse of Quah Seok Keng and father of Ong Choo Ian. Both Quah Seok Keng and Ong Choo Ian are
Executive Directors of the Company.
He has no conflict of interest and has had no convictions for any offences within the past five years.
QUAH SEOK KENG

Executive Director
Quah Seok Keng, aged 73, female, a Singaporean (Permanent Resident of Malaysia), was appointed to the Board
on 21 February 2002. She is the Executive Director of OKA Concrete Industries Sdn Bhd since its incorporation in
1981. She is involved in financial management and managing the Group’s sales department. She is also currently
overseeing the marketing department of OKA Concrete Industries Sdn Bhd.
She is a member of the Executives Share Option Committee of the Company and does not have any other
directorships of public companies.
She is the spouse of Ir. Ong Koon Ann and mother of Mr. Ong Choo Ian. Ir. Ong Koon Ann is the Group Managing
Director while Mr. Ong Choo Ian is the Executive Director of the Company.
She has no conflict of interest and has had no convictions for any offences within the past five years.
8
ANNUAL REPORT 2020
PROFILE OF THE BOARD OF DIRECTORS (cont’d)
ONG CHOO IAN

Group Chief Executive Officer (w.e.f. 01.07.2020)
Ong Choo Ian, aged 43, male, a Malaysian, was appointed to the Board on 26 August 2005. He graduated with a
Bachelor Degree in Civil Engineering with Honours and Master of Science in Engineering Business Management
from the University of Warwick, United Kingdom in 1997 and 1998 respectively. He is a graduate member of the
Institution of Civil Engineers, United Kingdom, Institution of Structural Engineers, United Kingdom and the Institution
of Engineers Malaysia.
He joined OKA Concrete Industries Sdn Bhd in 1999 as Purchasing Manager and was promoted to General Manager
– Purchasing in 2003. Currently he sits on the board of all the subsidiary companies within the Group. He was
redesignated as Group Chief Executive Officer with effect from 1 July 2020.
He is the son of Ir. Ong Koon Ann, Group Managing Director and Madam Quah Seok Keng, Executive Director of
the Company.
He has no conflict of interest and has had no convictions for any offences within the past five years.
CHOK HOOA @ CHOK YIN FATT, PMP

Independent Non-Executive Director
Chok Yin Fatt, aged 73, male, a Malaysian, was appointed to the Board on 12 July 2000. He graduated with
a Bachelor Degree in Business Studies from Curtin University of Technology, Australia and Master in Business
Administration from University of Strathclyde, United Kingdom. He is a Chartered Accountant of the Malaysian
Institute of Accountants, fellow members of CPA Australia and Malaysian Institute of Chartered Secretaries and
Administrators and a member of the Malaysian Institute of Certified Public Accountants.
He has extensive experience in the field of financial management, accounting and corporate secretarial functions.
He was attached to UAC Bhd from 1974 to 1982. In 1982 he joined Yee Lee Corporation Bhd as Chief Accountant
and was promoted to the Board as an Executive Director in 1990.
Presently he also sits on the Boards of Spritzer Bhd and another public company which is not listed on the Bursa
Malaysia Securities Berhad, namely, Yee Lee Organization Bhd. He is the Chairman of the Audit Committee; member
of the Remuneration Committee and Nomination Committee of OKA Corporation Bhd. He also holds directorships
in several private limited companies.
Chok Yin Fatt does not have any family relationship with any director and/or major shareholder of the Company. He
has no conflict of interest and has had no convictions for any offences within the past five years.
GAN BOON KOO @ GAN BOON KIU

Gan Boon Koo, aged 59, male, a Malaysian, was appointed to the Board on 21 February 2002. He obtained his
Diploma in Business Studies (Financial) from the Tunku Abdul Rahman College and is a member of the Association
of Chartered Certified Accountants (UK). He is a Chartered Accountant of the Malaysian Institute of Accountants.
He resigned from his position as General Manager of Finance, Mardec Berhad on 31 January 2016. He was then
offered the position as an Advisor of Mardec Berhad. Prior to this he was the Group Accountant of a public listed
trading company. He has gained extensive experience in corporate finance and restructuring exercises through
his attachment with several public listed companies involved in the property, trading and services and construction
industries from 1989 to 2004.
He was appointed as the Corporate Representative of MPH Group (M) Sdn Bhd on 9th January 2017 and similarly
acts as corporate representative for its other related companies.
He is the Chairman of the Remuneration Committee and also a member of the Audit Committee and Nomination
Committee of the Company.
He does not have any family relationship with any director and/or major shareholder of the Company. He has no
conflict of interest and has had no convictions for any offences within the past five years.
9
OKA CORPORATION BHD
KEY SENIOR MANAGEMENT’S PROFILE
For Key Senior Management Profiles of Ir. Ong Koon Ann, Mr. Ong Choo Ian and Mdm. Quah Seok Keng, kindly refer
to the Directors’ Profile in this Annual Report
ONG KOON ENG

General Manager - Factory
Ong Koon Eng, aged 65, male, a Malaysian, is a civil engineer graduated with Honours from Portsmouth in 1977.
For three years he was a District Drainage & Irrigation Department Engineer in Kelantan, in charged and managed
all projects in the district. Later he moved to a construction company as a Project Engineer to manage projects
involving piling and foundation works, drainage and irrigation works and construction of bridges mainly in Kelantan
and Terengganu. With his invaluable experience, he joined OKA Concrete Industries Sdn Bhd in 1983 as a factory
engineer to provide technical assistance and monitor the quality of the products. Subsequently he was appointed
the Factory Manager in 1984.
In 2002, he was appointed as General Manager – Factory providing engineering advisory service to subsidiaries in
the Group.
LAU WAI YEEN

Chief Financial Officer/Joint Company Secretary
Lau Wai Yeen, aged 50, male, a Malaysian, is a chartered accountant. He holds a Bachelor of Business Degree
in Accounting from Victoria University of Technology Melbourne, Australia and is a member of the CPA Australia
(ASCPA) and Malaysian Institute of Accountants (MIA). Prior to joining the Group, he was an auditor with KPMG
for 4 years.
In 1996, he joined OKA Concrete Industries Sdn Bhd as Administration Manager for 4 years before moving to other
companies and gained wide experience in operations, marketing, training, and finance.
In 2008, Mr. Lau re-joined the Group as Factory Manager (Batu Gajah). He was appointed as Chief Financial Officer
in November 2011 taking charge of operations and finance. He also serves as Joint Company Secretary of the
Company.
ONG EE DITH
General Manager – Corporate Affairs
Ong Ee Dith, aged 44, female, a Malaysian graduated from the University of Sheffield, United Kingdom in 1977, with a
degree in Bachelor of Arts with Honours in Accounting and Financial Management. In 2002, she obtained her Master
in Business Administration from Preston University, U.S.A. She was appointed as the Company’s General Manager
– Corporate Affairs in 2002. Prior to joining the Company, she was working in Singapore for about two years.
TEY HOCK LIM

General Manager – Sales & Marketing
Tey Hock Lim (Terry), aged 44, male, a Malaysian, graduated from the University of Central Oklahoma, USA in 1997
with a degree in Bachelor of Business Administration (Finance).
In 2004, he joined OKA Concrete Industries Sdn Bhd as Marketing and Sales Manager in charge of sales for the
southern region. He was later appointed as the General Manager overseeing Sales & Marketing in 2013.
Prior to joining the Company, he was working in the similar industries for 3 years and gained invaluable experience
in the field of sales and marketing.
ADDITIONAL INFORMATION:
1. Save for Ir. Ong Koon Ann, Mdm. Quah Seok Keng and Mr. Ong Choo Ian, none of the other Key Senior
Management has any directorship in public companies and listed issuers.
2. Save for Mr. Lau Wai Yeen and Mr. Tey Hock Lim, all the other Key Senior Management have family relationship
with the Directors and/or major shareholders of the Company. Mr. Ong Koon Eng is the brother of Ir. Ong Koon
Ann while Ms Ong Ee Dith is the daughter of Ir. Ong Koon Ann and Mdm. Quah Seok Keng.
3. None of the Key Senior Management has:-
(i) any conflict of interest with the Company;
(ii) been convicted of any offence (other than traffic offence) within the past five (5) years; and
(iii) been imposed with any public sanction or penalty by the relevant regulatory bodies during the financial year.
10
ANNUAL REPORT 2020
AUDIT COMMITTEE REPORT
The Audit Committee (“AC”) of OKA Corporation Bhd is pleased to present the AC Report for the financial year ended
31 March 2020 in compliance with Paragraph 15.15 of the Main Market Listing Requirements (“Listing Requirements”)
of Bursa Malaysia Securities Berhad (“Bursa Securities”).
The purpose, authority, composition, membership, meetings and responsibilities of the AC are set out in the AC
Charter which can be viewed at the Company’s website: http://www.oka.com.my
MEMBERSHIP AND ATTENDANCE
During the financial year ended 31 March 2020, the AC held 5 meetings. Details of the membership and record of
the attendance at these meetings are as follows:-
Members Number of Meetings Attended
Mr. Chok Hooa @ Chok Yin Fatt, PMP – Chairman 5/5

Mr. Gan Boon Koo @ Gan Boon Kiu – Member 5/5

En. Sharifuddin Bin Shoib, AMP – Member 5/5

Composition
The AC, appointed by the Board from amongst its members, presently comprises three (3) Independent Non-
Executive Directors. The Independent Directors satisfy the test of independence under Paragraph 1.01 of the
Listing Requirements. The Chairman is elected from among the members and is an independent director pursuant
to Paragraph 15.10 of the Listing Requirements.
Mr. Chok Hooa @ Chok Yin Fatt, PMP is a fellow member of CPA Australia and a member of the Malaysian Institute of
Certified Public Accountants whilst Mr. Gan Boon Koo @ Gan Boon Kiu is a member of the Association of Chartered
Certified Accountants (UK). Both Mr. Chok and Mr. Gan are also Chartered Accountants of the Malaysian Institute
of Accountants. The Company is therefore in compliance with Paragraph 15.09(1)(c)(i) of the Listing Requirements.
Meetings
A quorum consists of two (2) members present. Other Board members and senior management may attend meetings
upon the invitation of the Audit Committee. Both the Internal and External Auditors too, may request a meeting if
they consider necessary.
The minutes of the meeting were recorded and tabled for confirmation at the next following meeting and subsequently
presented to the Board for notation. The AC Chairman had presented to the Board the Committee’s recommendations
to approve the annual and quarterly financial statements.
The AC Chairman also conveyed to the Board matters of significant concern as and when raised by the External
Auditors or Internal Auditors.
SUMMARY OF WORKS OF THE AUDIT COMMITTEE
During the financial year ended 31 March 2020, the AC had discharged its duties and responsibilities by carrying out
the following works and activities:-
Financial Reporting
1. Reviewed and recommended for the Board’s approval the quarterly financial results and the draft announcements
pertaining thereto, to ensure that the Company’s quarterly financial reporting and disclosures present a true
and fair view of the Group’s financial position and performance and are in compliance with the Malaysian
Financial Reporting Standards, International Financial Reporting Standards and adhered to other legal and
regulatory requirements.
11
OKA CORPORATION BHD
AUDIT COMMITTEE REPORT (cont’d)
2. Reviewed the annual audited financial statements of the Group and of the Company. The Audit Committee
discussed with the management and the External Auditors the accounting principles and standards that were
applied and their judgement of the items that may affect the financial statements.
3. Reviewed with the management on any significant accounting and reporting issues, including complex or
unusual transactions and highly judgmental areas, and recent professional and regulatory pronouncements,
and understood their impact on the financial statements and steps taken to address the matters.
4. Reviewed the application of the corporate governance principles and the extent of the Group’s compliance with
the Code in conjunction with the preparation of the Corporate Governance Overview Statement and Statement
on Risk Management and Internal Control.
Risk Management and Internal Control
1. Deliberated and reviewed with the Risk Management Committee on the Group’s risk profile, the key risks
identified and the risk management process to ensure that all high and critical risk areas are being addressed.
2. Reviewed with the management and internal auditors on the adequacy and effectiveness of the internal control
system to ensure compliance with the internal controls and procedures set up within the Group and adequate
scope coverage over the activities of the Group.
3. Reviewed and deliberated the internal audit reports and to monitor/follow-up on remedial action.
4. Reviewed the Statement on Risk Management and Internal Control and recommend to the Board for approval
prior to the inclusion in the Company’s Annual Report 2020.
5. Reviewed the adequacy of resource requirements and competencies of outsourced internal audit function to
execute the annual audit plan and the results of the work.
6. Reviewed the Anti-Bribery & Corruption Policy and Framework and recommend to the Board for approval.
External Audit
1. Reviewed with the External Auditors at the meeting held on 24 February 2020, their audit plan in respect of the
financial year ended 31 March 2020; outlining the auditors’ responsibilities, financial and business highlights,
materiality level of the Group, audit risk assessment, significant risks and areas of audit focus, consideration of
fraud, internal control plan, involvement of internal auditors, timing of audit, engagement quality control review,
independence policies and procedure and financial reporting and other technical updates.
2. Discussed and considered the significant accounting and auditing issues arising from the interim audit and
final audit with the External Auditors. The AC also met with the External Auditors without the presence of any
Executive Board members and Management to discuss any fraudulent cases and/or problems/issues arising
from the audit.
3. Reviewed and evaluated the performance, competency, professionalism and the confirmation of independence
from the External Auditors. In respect of the financial year ended 31 March 2020, KPMG PLT (“KPMG”) has
confirmed their independence to act as the Company’s External Auditors in accordance with the relevant
professional and regulatory requirements.
The AC, having been satisfied with the performance, independence and suitability of KPMG, had recommended
to the Board for approval of the re-appointment of KPMG as the External Auditors for the financial year ending 31
March 2021 at its meeting held on 30 June 2020 at a fee to be determined later.
12
ANNUAL REPORT 2020
AUDIT COMMITTEE REPORT (cont’d)
Internal Audit
1. Reviewed and approved the Internal Audit Plan for the financial year ended 31 March 2020 to ensure that the
scope and coverage of the internal audit of the Group is adequate and comprehensive.
2. Reviewed the quarterly internal audit reports and considered the findings and recommendations made including
the Management’s responses and the corrective action, if necessary. The Internal Auditors monitored the
implementation of management’s action plans on outstanding issues through follow-up audits to ensure that all
key risks and weaknesses were being properly addressed.
3. Reviewed the adequacy of the scope, performance, competency and resources of the outsourced internal
auditors.
Other Activities
1. Reviewed on a quarterly basis, any related party transactions entered into by the Company and the Group to
ascertain that the transactions are conducted at arm’s length and on normal commercial terms which are not
more favourable to the related parties than those generally available to the public and are not to the detriment
of the minority shareholders.
2. Reviewed and/or updated the Group’s Code of Conduct, Corporate Disclosure Policy, Whistleblowing Policy,
AC Charter and Anti-Bribery & Corruption Policy and Framework prior to recommendation to the Board for
approval.
3. Reviewed the AC Report, Corporate Governance Overview Statement, and Risk Management and Internal
Control Statement for inclusion in the Annual Report 2020 before recommending them to the Board for approval.
SUMMARY OF ACTIVITIES OF THE OUTSOURCED INTERNAL AUDITORS
The Group has currently outsourced its Internal Audit Function to an independent professional internal audit service
provider. The Internal Auditors report directly to the AC on the outcome of its appraisal of risk management activities.
The Internal Auditors provided independent and objective assurance to the AC and the Board on the assessment of
the adequacy, efficiency and effectiveness of the Group’s governance, risk and internal control system. During the
year, the Internal Auditors had carried out their duties with impartiality, proficiency and due professional care with
reference to the International Standards for Professional Practice of Internal Auditing promulgated by the Institute
of Internal Auditors, Inc (USA).
The Internal Auditors adopted a risk-based approach whilst applying the principles of the COSO (Committee of
Sponsoring Organisations of the Treadway Commission) Framework for Internal Control as a guideline for review and
reporting. The audit reviews encompassed the assessment of processes and controls covering materials handling
management, facilities and machinery repairs and maintenance, spare parts and consumables management,
occupational safety, health and environment management on factory and group level, quality assurance/quality
control, finished goods inventory management, logistics & delivery. Also included were follow-up reviews on
implementation of audit recommendations issued in prior years’ audit reports.
Audit reports incorporating audit observations and recommendations for corrective action on the system and internal
control weaknesses were presented to the Management and thereafter to the Audit Committee for appraisal and
review before presenting to the Board on a quarterly basis. The Management would ensure all remedial actions
had been taken to resolve the audit issues highlighted in the audit reports within a reasonable time frame. The
cost incurred for the outsourced internal audit function in respect of the financial year ended 31 March 2020 was
RM46,421 (including SST).
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OKA CORPORATION BHD
CORPORATE GOVERNANCE OVERVIEW STATEMENT
The Board of Directors (“the Board”) of OKA Corporation Bhd (“Company” or “OKA”) acknowledges the importance of
practicing good corporate governance practices under the leadership of the Board, as guided by the new Malaysian
Code on Corporate Governance (“MCCG”). It is being applied as a fundamental part of discharging the directors’
responsibilities to protect and to enhance shareholders’ value.
The Board of OKA presents this statement to provide shareholders and investors with an overview of the corporate
governance (“CG”) practices of the Company under the leadership of the Board during the financial year ended
31 March 2020. This statement takes guidance from the key CG principles as set out in the MCCG. The detailed
application for each practice as set out in the MCCG is disclosed in the Corporate Governance Report 2020 (“CG
Report 2020”) which is available on the Company website at http://www.oka.com.my
PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS
Part 1 – Board Responsibilities
1. Board’s leadership on Objectives and Goals
1.1 Company’s strategic aims, values and standards
The Board is responsible for formulating the strategic plans, and establishing visions and goals for
delivery of long-term values, and ensures effective leadership through oversight on management and
continuously monitoring, overseeing and evaluating the Group’s strategies, policies and performance so
as to protect and to enhance shareholders and other stakeholders’ value.
There is a division of functions between the Board and the Management. The Board is focused on
the Group’s overall governance by ensuring the implementation of strategic plans and objectives are
in line with its vision and missions; and that accountability to the Group and stakeholders is monitored
effectively. The Board does not actively manage but rather oversees the overall management of the
Group which is delegated to the Group Managing Director, Executive Directors and other officers of the
Group. The Management supports the Group Managing Director in managing the financial and general
operations of the Group.
To ensure the effective discharge of its function and responsibilities, the Board delegates some of the
Board’s authorities and discretion to the properly constituted Board Committees, namely the Audit
Committee, Nomination Committee and Remuneration Committee, which are entrusted with specific
responsibilities to oversee the Group’s affairs, with authority to act on behalf of the Board in accordance
with their respective Terms of Reference. The ultimate responsibility for the final decision on all matters
deliberated in these Committees, however, lies with the Board. Besides that, the Chairman of the relevant
Board Committees also reports to the Board on key issues deliberated by the Board Committees at their
respective meetings.
The Board may also delegate specific functions to ad hoc committees as and when required. The powers
delegated to these committees are set out in the Terms of Reference of each of the Committees as
approved by the Board.
The Independent Non-Executive Directors provide objective and independent judgement to the decision
making of the Board which provides an effective check and balance to the Board’s decision-making
process.
1.2 The Chairman
The Chairman is primarily responsible for matters pertaining to the Board and the overall conducts of the
Group. The Chairman is committed to good corporate governance practices and has been leading the
Board towards achieving the Company’s goals.
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ANNUAL REPORT 2020
CORPORATE GOVERNANCE OVERVIEW STATEMENT (cont’d)
PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS (Cont’d)
Part 1 – Board Responsibilities (Cont’d)
1. Board’s Leadership on Objectives and Goals (Cont’d)
1.3 Separation of positions of the Chairman and Managing Director
The roles and responsibilities of the Chairman and Managing Director are clearly segregated to further
enhance and preserve a balance of authority, power and accountability. The Chairman is responsible
for ensuring Board’s effectiveness and conduct, and the executive function of the management of the
Group’s business; while the Managing Director leads the Senior Management of the Company in making
and implementing the day-to-day decisions on the business operations, managing resources and risks in
pursuing the corporate objectives of the Group.
The separation of responsibilities between the Chairman and Managing Director are set out in the Board
Charter which can be viewed at the Company’s website at http://www.oka.com.my
1.4 Qualified and Competent Company Secretaries
The Board is supported by two (2) professionally qualified Company Secretaries, one is a Chartered
Secretary and the other a Chartered Accountant. Both Company Secretaries have the requisite credentials
and are qualified to act as company secretary under Section 235(2) of the Companies Act 2016.
The Company Secretaries play an important advisory role and are sources of information and advice to the
Board and its Committees on issues relating to compliance with laws, rules, procedures and regulations
affecting the Company and Group.
The Board is of the view that the Company Secretaries are competent and have kept themselves abreast
of the evolving regulatory changes and developments through continuous education programmes and
attendance of relevant conferences, seminars and training programmes.
1.5 Meeting Materials
The Board is provided with an agenda, reports and other relevant information for the Board meetings,
covering various aspects of the Group’s operations, so that they have a comprehensive understanding
of the matters to be deliberated upon to enable them to arrive at an informed decision. All scheduled
meetings held during the year were preceded with a formal agenda issued by the Company Secretaries.
Senior management and advisers are invited to attend Board meetings, where necessary, to provide
additional information and insights on the relevant agenda items tabled at Board meetings.
The Company Secretaries attend and ensure that the deliberations and decisions at Board and Board
Committee meetings are well documented in the minutes, including matters where Directors abstained
from voting or deliberation.
2. Demarcation of Responsibilities
2.1 Board Charter
The Board is guided by the Board Charter which sets out the roles, functions, authority, responsibilities,
membership, key matters reserved for the Board, relationships with management and other matters.
The Board reviews the Board Charter annually and updates the Board Charter in accordance with the
needs of the Company and any new regulations that may have an impact on the discharge of the Board’s
responsibilities to ensure its effectiveness. The Board Charter can be viewed at the Company’s website
at http://www.oka.com.my
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OKA CORPORATION BHD
Part 1 – Board Responsibilities (Cont’d)
3. Good Business Conduct and Healthy Corporate Culture
3.1 Code of Conduct
The Board has formalized a Directors’ Code of Ethics and Conduct that is incorporated in the Board
Charter, which sets out the standard of conduct expected of Directors, with the aim to cultivate good
ethical conduct that permeates throughout the Group through transparency, integrity, accountability and
corporate social responsibility.
Directors are required to disclose any conflict of interest situations or any material personal interest that
they may have in the affairs of the Group as soon as they become aware of the interest and abstain
themselves from any deliberations on the matter.
3.2 Whistleblowing Policy
The Board is committed to maintaining the highest possible standard of professionalism, ethics and legal
conduct in the Group’s business activities. The Company’s Whistleblowing Policy provides a mechanism
for its Board members, all levels of employees, contractors, suppliers, bankers, customers and business
associates to report suspected or instances of wrongdoing in the conduct of its business, whether in
matters of financial reporting or other malpractices, at the earliest opportunity and in an appropriate way.
The Whistleblowing Policy is available on the Company’s website at http://www.oka.com.my
3.3 Anti-bribery & Corruption Policy and Framework
In line with the Corporate Liability Provision under the New Section 17A MACC (Amendment) Act 2018,
the Board has adopted the Anti-bribery & Corruption Policy and Framework developed by the RMC on
24 February 2020. This shows the Group’s commitment in doing businesses ethically and lawfully. Any
forms of bribery and corruption are unacceptable and will not be tolerated. It has always been the
Group’s corporate philosophy and our principle of placing integrity before profits.
Part II – Board Composition
4. Board’s Objectivity
4.1 Composition of the Board
The Board currently has six (6) members, comprising three (3) Executive Directors and three (3) Independent
Non-Executive Directors. The role of Chairman is held by an Independent Non-Executive Director. This
Board composition complies with the Main Market Listing Requirements (“Listing Requirements”) of Bursa
Malaysia Securities Berhad (“Bursa Securities”) to have at least one third (1/3) of the Board consisting of
Independent Directors.
The MCCG requires that at least half of the Board comprises independent directors which the Company
has complied.
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ANNUAL REPORT 2020
Part II – Board Composition (Cont’d)
4. Board’s Objectivity (Cont’d)
4.2 Tenure of Independent Directors
The Nomination Committee and the Board have determined at the annual assessment carried out on Mr.
Chok Hooa @ Chok Yin Fatt, PMP, Mr. Gan Boon Koo @ Gan Boon Kiu and Encik Sharifuddin Bin Shoib, AMP
who have served on the Board for a cumulative term of more than twelve (12) years, that they remain
objective and independent in expressing their views and in participating in deliberations and decision
making of the Board and Board Committees. The length of their services on the Board does not in any
ways interfere with their exercise of independent judgement.
The Board is satisfied with the level of independence demonstrated by all the Independent Non-Executive
Directors and their ability to act in the best interests of the Company.
In accordance with Practice 4.2 of the MCCG, resolutions under the special business to retain Mr. Chok
Hooa @ Chok Yin Fatt, PMP, Mr. Gan Boon Koo @ Gan Boon Kiu, and Encik Sharifuddin Bin Shoib, AMP as
the Independent Directors will be tabled in the forthcoming 20th AGM through a two-tier voting process.
4.3 Policy on Independent Director’s Tenure
The Company does not have a policy which limits the tenure of its independent directors to nine (9) years.
The Board Charter has adopted Practice 4.2 of the MCCG to seek shareholders’ approval in the event
the Board desires to retain a director who has served in that capacity for more than nine (9) years as an
Independent Director. If the Board continues to retain the Independent Director after the twelfth (“12”)
year, the Board must seek shareholders’ approval annually through a two (2)- tier voting process.
4.4 Diverse Board and Senior Management
The Nomination Committee is responsible for reviewing and assessing the mix of skills, expertise,
composition, size, experience and effectiveness of the Board, its Committees and Senior Management.
This process ensures that the Board membership accurately reflects the long-term strategic direction and
needs of the company while it determines the skills matrix needed to support the strategic direction and
needs of the Company.
Appointment of Board and Senior Management are based on objective criteria, merit and besides gender
diversity, due regards are placed for diversity in skills, experience, age and cultural background. Please
refer to the Directors’ Profile and Key Senior management’s Profile in the Annual Report 2020 for further
information.
4.5 Gender Diversity Policy
The Board acknowledges the importance of gender diversity in the board and senior management and
the recommendation of the MCCG pertaining to the establishment of a gender diversity policy. Hence,
the Board had always been in support of a policy of non-discrimination on the bases of race, religion and
gender. The Board encourages a dynamic and diverse composition by nurturing suitable and potential
candidates equipped with the competency, skills, experience, character, time commitment, integrity and
other qualities in meeting the future needs of the Company. Presently, there is one (1) female director
sitting on the Board.
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OKA CORPORATION BHD
4.6 New Candidates for Board Appointment
The Nomination Committee is responsible for identifying and recommending suitable candidates for
Board membership and also for assessing the performance of the Directors on an on-going basis. This
process shall ensure that the Board membership accurately reflects the long-term strategic direction and
needs of the Company while it determines the skill matrix needed to support the strategic direction and
needs of the Company.
The process for the appointment of a new director is summarized as follows:-
1. The candidate identified upon the recommendation by the existing Directors, senior management
staff and/or other consultants;
2. In evaluating the suitability of candidates to the Board, the Nomination Committee considers, inter-
alia, the competency, experience, commitment, contribution and integrity of the candidates, and
in the case of candidates proposed for appointment as Independent Non-Executive Directors, the
candidate’s independence;
3. Recommendation to be made by Nomination Committee to the Board if the proposed candidate is
found to be suitable. This includes recommendation for appointment as a member of the various
Board Committees, where necessary; and
4. The final decision as to who shall be appointed as Director remains the responsibility of the full
Board after considering the recommendation of the Nomination Committee.
As an integral element of the process of appointing new Directors, the Nomination Committee will ensure
that Directors undergo an orientation programme to familiarize themselves with the Group’s business,
which include visits to the Group’s various offices and factory premises and meetings with senior
management. This is to facilitate their understanding of the Group’s activities and to assist them in
effectively discharging their duties.
4.7 Re-election and Re-appointment of Directors
In accordance with the Company’s Constitution (“Constitution”), all newly appointed Directors are subject
to re-election by shareholders at the first annual general meeting (“AGM”) after their appointments. The
Constitution also provides that one third (1/3) of the remaining Directors be subject to re-election by
rotation at each AGM provided always that all Directors shall retire from office at least once in every three
(3) years but shall be eligible for re-election.
The Nomination Committee is responsible for recommending to the Board those Directors who are eligible
to stand for re-election/re-appointment.
4.8 Nomination Committee
The Nomination Committee has three (3) members comprising exclusively Non-Executive Directors, all of
whom are Independent Directors.
.
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ANNUAL REPORT 2020
4.8 Nomination Committee (Cont’d)
The Nomination Committee meets at least once a year with additional meetings to be convened, if
necessary. During the financial year under review, the Nomination Committee had met on 27 May 2019
and full attendance by the members was recorded.
Number of meeting attended
Chairman
Sharifuddin Bin Shoib, AMP 1/1
Members
Chok Hooa @ Chok Yin Fatt, PMP 1/1
Gan Boon Koo @ Gan Boon Kiu 1/1

The Nomination Committee is responsible for assessing the performance of the existing Directors and
identifying, nominating, recruiting, appointing and orientating new Directors. The Board has established
an annual performance evaluation process to assess the performance and effectiveness of the Board and
Board Committees, as well as the performance of each Director.
The Terms of Reference of the Nomination Committee is available on the Company’s website at http://
www.oka.com.my
5. Overall Board Effectiveness
5.1 Annual Evaluation and Directors Training
The Board together with the Nomination Committee, determines the size and composition of the Board
subject to the provisions of the Company’s Constitution. The composition and size of the Board is
such that it will facilitate the decision making process of the Company. The Board comprises half of
independent non-executive directors and directors with a broad and relevant range of skills, diversity,
expertise and experience.
The Nomination Committee conducted its annual evaluation on the effectiveness of the Board, its
Committees and the contribution of each director.
The evaluation involves individual Directors completing separate performance evaluation sheet regarding
the processes of the Board and its Committees, their effectiveness and where improvements could be
considered. Criteria such as contribution to interaction, quality of output, understanding of roles and
Board Chairman’s role are assessed and evaluated.
These assessments and comments by all Directors were summarized and discussed at the Nomination
Committee meeting which were then reported to the Board at the Board meeting held thereafter. All
assessments and evaluations carried out by the Nomination Committee in the discharge of its duties are
properly documented.
There were no major concerns from the results of the annual assessment. The Nomination Committee,
upon the review carried out, is satisfied that the size of the Board is optimum and that there is an
appropriate mix of experience and expertise in the composition of the Board and its Committees.
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OKA CORPORATION BHD
5. Overall Board Effectiveness (Cont’d)
5.1 Annual Evaluation and Directors Training (Cont’d)
Based on the annual board assessment and evaluation, the Nomination Committee has recommended the
re-election of Mr. Ong Choo Ian and Mr. Chok Hooa @ Chok Yin Fatt, PMP as Directors at the forthcoming
20th AGM. The Board (saved for the interested directors) is satisfied that these two (2) directors have
continued to contribute to the Board’s effectiveness and have discharged their responsibilities as directors.
The Directors are aware of the time commitment expected from each of them to attend to the matters
of the Group generally, including attendance at Board, Board Committees and other types of meetings.
None of our Directors are directors of more than three (3) public listed companies. The Board is satisfied
that the present directorships in external organisations held by the Directors do not give rise to any
conflict of interests nor impair their ability to discharge their responsibilities to the Group.
The Board has committed to meet at least four (4) times a year, usually before the announcement of
quarterly results to Bursa Securities with additional meetings convened when necessary.
During the financial year ended 31 March 2020, four (4) Board meetings were held and the attendance is
as follows:-
Directors Attendance
Mdm. Quah Seok Keng 4/4

Mr. Ong Choo Ian 4/4
Mr. Chok Hooa @ Chok Yin Fatt, PMP 4/4
Mr. Gan Boon Koo @ Gan Boon Kiu 4/4
Encik Sharifuddin Bin Shoib, AMP 4/4
Ir. Ong Koon Ann 4/4
The Directors would notify the Company prior to accepting any new directorship in a public listed company.
The Board acknowledges that continuous education is vital in keeping them abreast with developments in
the market place and with new statutory and regulatory requirements, besides enhancing professionalism
and knowledge in enabling them to discharge their roles in an effective manner.
Relevant training programmes were arranged to facilitate knowledge building for Directors. The Directors
may also attend additional training courses according to their individual needs, to equip themselves for
the discharge of their responsibilities as directors of a public listed company and in the Board Committees
on which they serve.
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ANNUAL REPORT 2020
5. Overall Board Effectiveness (Cont’d)
5.1 Annual Evaluation and Directors Training (Cont’d)
All the Directors have attended development and training programmes during the financial year ended 31
March 2020. The conferences, seminars and training programmes attended by the Directors, collectively
or individually were as follows:-
Name Conferences, seminars, workshops and training programmes

Sharifuddin Bin • FMM Perak Tea Talk on Embracing Digital Transformation
Shoib, AMP • KPMG Tax and Business Summit 2019
Ong Koon Ann • Risk On Risk Off, Alternatives Should Be Better off – 2nd Quarter 2019 by
UOB Asset Management
• KPMG Tax and Business Summit 2019
Quah Seok Keng • Risk On Risk Off, Alternatives Should Be Better off – 2nd Quarter 2019 by
Ong Choo Ian • Risk On Risk Off, Alternatives Should Be Better off – 2nd Quarter 2019 by
Chok Hooa @ • MFRS 16 Leases –Course By Deloitte
Chok Yin Fatt, PMP • TM One IR4.0 Perak Roadshow
• Corporate Liability Act – Defense For Directors, Executives & Company
Gan Boon Koo @ • Case Study Workshop for Independent Directors by SC
Gan Boon Kiu • Bursa Malaysia –Demystifying The Diversity Conundrum: The Road to
Business Excellence
• Session on Corporate Governance & Anti-Corruption
• Audit Oversight Board Conversation with Audit Committees
6. Level and Composition of Remuneration
6.1 Remuneration Policy
The Company aims to set remuneration at levels which are sufficient to attract, retain, motivate and reward
suitably qualified candidates to occupy positions in the Board and Senior Management in order to run the
business successfully taking into consideration all relevant factors including the function, workload and
responsibilities involved.
For the Executive Director and Senior Management, the components of the remuneration package are
linked to corporate and individual performance. For the Non-Executive Directors, they receive a fixed
Director’s fee, meeting and travelling allowance for attending meetings of the Board and its Committees.
Other allowance may also be paid for performance of specific job assignment.
The Board is mindful of the recommendation of MCCG pertaining to the establishment of the remuneration
policy. The Board will take steps towards formalizing remuneration policy to determine the remuneration of
Directors and Senior Management, which takes into account the demands, complexities and performance
of the Company as well as skills and experience required.
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OKA CORPORATION BHD
6. Level and Composition of Remuneration (Cont’d)
6.2 Remuneration Committee
The Remuneration Committee has three (3) members comprising all Independent Non-Executive
Directors.
The Remuneration Committee is responsible for setting the policy framework and makes recommendation
to the Board on all elements of remuneration and terms of employment of Executive Directors and senior
management. Non-Executive Directors’ remuneration will be a matter to be decided by the Board as a
whole with the Director concerned abstaining from deliberations and voting decisions in respect of his
individual remuneration.
The Remuneration Committee is entrusted to assist the Board, amongst others, to recommend to the Board
the remuneration of Executive Directors by linking rewards to the corporate and individual performance.
The Remuneration Committee shall ensure that the level of remuneration is sufficient to attract and retain
Directors of the quality required to manage the business of the Group.
The current remuneration payable to Non-Executive Directors comprises Directors’ fees and meeting
allowance, based on the number of meetings they are attending for a year which require shareholders’
approval.
Meetings of the Remuneration Committee are held as and when necessary, and at least once a year. The
members met twice in the financial year ended 31 March 2020 and full attendance by the members was
recorded.
The Terms of Reference of the Remuneration Committee is available on the Company’s website at http://
www.oka.com.my
7. Remuneration for Directors and Senior Management
7.1 Directors’ Remuneration
The details of the remuneration for Directors of the Company (comprising remuneration received and/or
receivable from the Company) during the financial year ended 31 March 2020 are categorized as follows:-
Directors’ Benefits- Other

Remuneration Salaries Fees Bonus In-kind Emoluments Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Executive Directors
Ong Koon Ann 658 29 280 34 113 1,114
Quah Seok Keng 456 27 128 17 71 699
Ong Choo Ian 418 27 170 22 71 708
Non-Executive Directors
Sharifuddin Bin Shoib - 29 - - 50 79
Chok Hooa
@ Chok Yin Fatt - 27 - - 49 76
Gan Boon Koo
@ Gan Boon Kiu - 27 - - 41 68
Total 1,532 166 578 73 395 2,744
Directors’ fees and all benefits payable, if any are subject to the approval of shareholders at the forthcoming
Annual General Meeting of the Company.
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ANNUAL REPORT 2020
7. Remuneration for Directors and Senior Management
7.2 Senior Management
The Company has an existing policy whereby the remuneration of employees is classified as confidential.
The remuneration details for senior management are not disclosed as the Board is of the view that it
would not be in the best interest of the Company to disclose the details given the competitiveness in the
market for good senior management. It could also possibly give rise to unnecessary staff rivalry and
disillusionment.
The performance of senior management is evaluated on an annual basis and measured against pre-
determined targets including responsibilities. The Board will ensure that the remuneration for senior
management is appropriately commensurate with their performance, in order to attract, retain and
motivate them to contribute positively towards the Group’s performance.
PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT
Part I – Audit Committee
8. Effective and Independent Audit Committee
The Audit Committee of the Company presently comprises three (3) Independent Non-Executive Directors.
The Audit Committee is chaired by Mr. Chok Hooa @ Chok Yin Fatt, AMP who is distinct from the Chairman of
the Board.
The members of the Audit Committee have a mix of commercial, financial, engineering skills, management,
accounting and manufacturing experience. Members of the Committee do attend seminars to keep abreast of
relevant developments in accounting and auditing standards, practices and rules.
The Board has established a formal and transparent arrangement with the external auditors of the Company
through the Audit Committee. The Audit Committee communicated directly and independently with the auditors
and without the presence of the Executive Directors.
Further details please refer to Audit Committee Report in the Annual Report 2020
Part II – Risk Management And Internal Control Framework
9. Risk Management And Internal Control Framework
9.1 Effective Risk Management and Internal Control Framework
The Board affirms its overall responsibilities for the Group’s system of internal control which includes the
establishment of an appropriate control environment and framework as well as reviewing its adequacy
and effectiveness. The internal control system has been applied to manage risks within cost levels
appropriate to the significance of the risks. Accompanying these regular reviews and evaluations of
internal control system is a continuous process for identifying, evaluating and managing significant risks
which are faced by the Group.
The Risk Management Committee (“RMC”) had been established in year 2003 to oversee the Group’s
risk management function. The RMC will review and approve actions developed to mitigate key risks
and advising the Board on risk related issues. It provides direction to the risk management process
and involves in the evaluation of the structure for the Group’s risk management processes and support
system. The RMC will assist the Board to carry out its sustainability commitment and initiatives as well.
Recommendations from the RMC were forwarded to related departments and this warrants the strategic
and rapid response by the Management to mitigate the impact on its key risks in order to achieve the
Group’s business objectives.
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OKA CORPORATION BHD
PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT (Cont’d)
Part II – Risk Management And Internal Control Framework (Cont’d)
9. Risk Management And Internal Control Framework (Cont’d)
9.2 Features, Adequacy and Effectiveness of Risk Management and Internal Control Framework
The Board has adopted a systematic approach to oversee the actual performance and provides guidance
to the management on measures to improve the business performance and minimize risk impacts. The
Group has an adequate and effective risk management framework, and a sound internal control system
in place. The Group’s risk management function is being assigned to the RMC to monitor and mitigate
the key risks. The Audit Committee will perform a risk oversight role by reviewing the adequacy and
effectiveness of the Group’s system of internal control and risk management function, and advises the
Board accordingly.
The Board is committed towards improving the risk management to meet its corporate objectives and
to support all types of businesses and operations within the acceptable level of risks which are aligned
with the Group’s risk appetite. The Board is of the view that the existing system of risk management
and internal control is sound, and sufficient to protect the Group’s interest and that of its stakeholders.
The features of risk management and internal control framework are adequately disclosed in the Audit
Committee Report, Corporate Governance Overview Statement, and Statement on Risk Management
and Internal Control of this Annual Report.
10. Effective Governance, Risk Management and Internal Control
On 31 January 2020, an annual assessment of the effectiveness and independence of the outsourced internal
audit function has been conducted by the Audit Committee for the financial year ended 31 March 2020. The
Audit Committee has opined that the outsourced internal audit team had carried out their duties objectively,
impartially and independently in accordance with the Internal Audit Charter, International Professional Practice
Framework for Internal Auditing and Code of Ethics for Internal Auditors.
The Audit Committee is satisfied that the outsourced internal auditors had maintained a high degree of
independence and professionalism in carrying out their duties, and able to provide value added services to the
OKA Group.
Besides, the Audit Committee has reviewed the adequacy of resource requirements and competencies of the
audit staff as well as the annual audit plan and their audit works. The Audit Committee has obtained reasonable
assurance that the internal audit function had remained effective and advised the Board accordingly. As such,
the Board is confident that the outsourced internal auditors are competent enough to provide value added
services, and able to meet all its audit objectives.
The processes of corporate governance, risk management and internal control framework are adequately
disclosed in the Audit Committee Report, Corporate Governance Overview Statement, and Statement on Risk
Management and Internal Control of the Annual Report.
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ANNUAL REPORT 2020
PRINCIPLE C: INTERGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH

STAKEHOLDERS
Part I – Communication with Stakeholders
11. Continuous Communication between Company and Stakeholders
The Board recognises the importance of an effective communication channel between the Board, shareholders
and general public, and at the same time, full compliance with the disclosure requirements as set out in the
Listing Requirements. The annual reports, quarterly results and any announcements on material corporate
exercises are the primary modes of disseminating information on the Group’s business activities and financial
performance.
The Managing Director, Executive Directors and Chief Financial Officer are the designated spokespersons for
all matters related to the Group and oversee investor relations and where it deems practicable to do so, will
engage with research analysts, fund managers and institutional shareholders based on mutual understanding
of objectives and entertain visits from such groups.
The Board will continue to assess and improve on the reporting and disclosure. The Company further ensures
that shareholders are kept fully informed through information provided on the Company’s website at http://www.
oka.com.my
Part II – Conduct of General Meetings
12. Encourage Shareholders’ Participation at General Meetings
The Board regards the AGM and other general meetings as an opportunity to communicate directly with
shareholders and encourages attendance and participation in dialogue. To ensure effective participation of
and engagement with shareholders at the 19th AGM of the Company held on 30 August 2019, all members of
the Board were present at the meeting to respond to the questions raised by the shareholders or proxies. The
Chairman of the Board chaired the 19th AGM in an orderly manner and allowed the shareholders or proxies
to speak at the meeting. The Board welcomed questions and feedback from shareholders during and at the
end of the 19th AGM and ensured their queries were responded in a proper and systematic manner. The
management and external auditors were also in attendance to respond to the shareholders’ queries. Further,
in line with good corporate governance practice, the notice of the 19th AGM was issued at least 28 days before
the AGM date.
Pursuant to Paragraph 8.29A(1) of the Listing Requirements, the Company is required to ensure that any
resolution set out in the notice of general meetings is voted by poll. Hence, all the resolutions set out in the
notice of the Company’s 19th AGM were voted by poll.
Due to the Company having a relatively small number of shareholders and that the Company’s AGM is not held
in remote areas, voting in absentia and remote shareholders’ participation are not facilitated as advocated in
MCCG’s Practice 12.3.
This Corporate Governance Overview Statement was approved by the Board on 17 August 2020
25
OKA CORPORATION BHD
OTHER INFORMATION
1. Utilisation of proceeds raised from Corporate Proposals
The Company did not raise any funds from any corporate proposals during the financial year ended 31 March
2020.
2. Audit and Non-audit Fees
For the financial year ended 31 March 2020, the amount of audit and non-audit fees paid/payable to the
external auditors of the Group and Company are as follows:-
Company Group
RM RM
Audit fee 28,000 118,800

Non-audit fee 15,000 15,000
Total 43,000 133,000
3. Contracts relating to loans
There were no contracts relating to loans made by the Company during the financial year.
4. Material Contracts
There was no material contract which has been entered into by the Group, involving the Directors’ and major
shareholders’ interests, entered into since the end of the previous financial year and at the end of the financial
year.
5 Executives Share Option Scheme (“ESOS”)
The ESOS of the Company expired on 4 January 2020. It had been in force for a period of five (5) years
commencing from 5 January 2015 in accordance with the By-Laws of the ESOS of the Company. During the
financial year, no share options were granted to Directors and senior management pursuant to the ESOS and
none of the Directors exercised the ESOS options.
26
ANNUAL REPORT 2020
STATEMENT ON RISK MANAGEMENT AND

INTERNAL CONTROL
1. Introduction
The Malaysian Code on Corporate Governance requires listed companies to maintain a sound system of risk
management and internal control to safeguard shareholders’ investments and the Group’s assets. Pursuant
to Paragraph 15.26(b) of the Bursa Malaysia Securities Berhad Main Market Listing Requirements and the
Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers, the Board of
Directors of OKA Corporation Bhd (“the Board”) is pleased to make the following statement which outlines the
nature and scope of the risk management and internal control of the Group for the financial year ended 31
March 2020.
2. Board’s Responsibilities
The Board recognises that internal control is an integral part of managing risks in an effort to achieve
corporate objectives. As such, the Board acknowledges its responsibilities in maintaining as well as reviewing
the adequacy and integrity of the Group’s system of risk management and internal control which provides
reasonable assurance of effective and efficient operations, financial controls and compliance with laws and
regulations together with internally set procedures and guidelines safeguarding shareholders’ investments
and the Group’s assets. The Group’s system of risk management and internal control is designed to provide
reasonable but not absolute assurance against risks of material errors, fraud or losses from occurring. In view
of the limitations that are inherent in any system of risk management and internal control, the Group’s system
of risk management and internal control is applied to manage rather than to eliminate the risk of failure in
achieving the business objectives.
3. Internal Audit Function
The Group’s Internal Audit function has been outsourced to a firm of consultants (“Internal Auditors”).
The internal audit function provides assurance of the effectiveness of the system of risk management and
internal control within the Group. The Internal Auditors conduct independent reviews of the key activities within
the Group’s operating units based on a 2-year Audit Plan which was approved by the Board. The Internal
Auditors would report to the Audit Committee on risk and control matters of significance; including suspected
fraud, illegal or irregular acts and material misstatements, if any. Any areas identified for improvements during
the course of audit are also brought up to the attention of the Audit Committee.
The Audit Committee considers the findings from internal audit and management, before reporting and making
recommendations to the Board. The Audit Committee presents its findings to the Board during the quarterly
Board meetings.
4. Risk Management Framework
The process of determining risks forms part of the Group’s internal control environment. As a result, the
following initiatives have been undertaken by the management and the Board:
(a) Pursuant to the new Malaysian Code on Corporate Governance (“MCCG”) issued by the Securities
Commission Malaysia on 26 April 2017, a compliance review of the new Malaysian Code on Corporate
Governance 3rd Edition was conducted by the Internal Auditors. The Board has evaluated the existing
risk management practices to ensure that they are appropriate and continues to remain relevant to the
Group’s requirement;
(b) A Risk Management Committee (“RMC”) comprising the Managing and Executive Directors and senior
management was established on 1 October 2003;
(c) Risk management meetings were held twice a year to update the risks and mitigating controls to produce a
detailed risk register. Key risks identified are scored for likelihood of the risks occurring and the magnitude
of its impact;
(d) Recommendations from the RMC were forwarded to related departments;
(e) Audit Committee reviews the findings of the RMC and risk register of the Group.
The Board has in place a process of identifying, evaluating and managing significant risks encountered by the
Group in its achievement of objectives and strategies for the year under review and up to the date of approval
of this Statement.
27
OKA CORPORATION BHD
STATEMENT ON RISK MANAGEMENT AND

INTERNAL CONTROL (cont’d)
5. Other Risk And Control Processes
Apart from risk management and internal audit, the Board has put in place an organisational structure with
the appropriate lines of responsibility, delegation of authority and accountability. The procedures include the
establishment of limits of authority coupled with the publication of Safety & Health Manual and Quality Manual
which highlights policies on safety and health as well as quality.
Monthly consolidated management accounts and financial analysis are prepared to allow top management to
focus on areas of concern. All access to the assets and records of the Group are safeguarded and controlled
to reduce the risk of unauthorised use.
The Group’s individual operating units are managed by managers who are responsible for the conduct and
performance of their businesses in accordance with the organisation’s goals. The Group’s performance is
monitored by the Group Managing Director, Executive Directors and senior management team. Senior
management meetings were conducted for three (3) times this financial year to share information, monitor
the progress of various operating units and to make decision pertaining to certain operational matters. The
Group Managing Director also reports to the Board on significant changes in the business and the external
environment. In addition, the Board and Audit Committee also review the quarterly results to monitor the
Group’s progress towards achieving its objectives. The Chief Financial Officer provides the Board with quarterly
financial information. Where areas of improvement in the system of risk management and internal control are
identified, the Board considers the recommendations made by the Audit Committee and the Management.
6. Anti-Bribery & Corruption Policy
In line with the Corporate Liability Provision under the New Section 17A MACC (Amendment) Act 2018, the
Board has adopted the Anti-bribery & Corruption Policy and Framework developed by the RMC on 24 February
2020. The Group is committed to conduct business dealings with highest level of integrity and ethics and to
comply fully with applicable laws and regulatory requirements on anti-corruption.
The Anti-bribery & Corruption Policy and Framework are guided by five (5) principles i.e Top level commitment,
Risk assessment, Undertake control measures, Systematic review, Monitoring & enforcement and Training &
communication.
7. Weaknesses In Internal Control That Result In Material Losses
There were no material losses incurred during the financial year under review as a result of weaknesses in
internal control. Management continues to take measures to strengthen the control environment which includes
credit control management, debts recovery and inventory management.
8. Review Of Effectiveness
The Board has received assurance from the Managing Director and Chief Financial Officer that the Group’s
risk management and internal control system is operating adequately and effectively, in all material aspects,
during the financial year under review and up to the date of this Statement. On-going reviews are carried out
by the Board to ensure the effectiveness and adequacy of the Group’s risk management and internal control
system in safeguarding the shareholders’ investments, customers’ interest and Group’s assets. The Board
remains committed and will continue to take measures to strengthen the internal control and risk management
environment towards enhancing the system of internal control to support all types of businesses and operations
within the OKA Corporation Bhd group of companies.
This statement is made in accordance with the resolution of the Board dated 17 August 2020.
28
ANNUAL REPORT 2020
MANAGEMENT DISCUSSION AND ANALYSIS
GROUP FINANCIAL HIGHLIGHTS

Amounts in RM’000
unless otherwise stated 2020 2019 2018 2017 2016
Financial Results
Revenue 119,052 129,175 144,429 166,673 152,915
Profit Before Tax 14,486 14,049 32,117 37,419 27,027
Profit After Tax 11,300 10,921 24,617 28,297 20,634

Basic Earnings per Share (Sen) 4.60 4.45 10.043 11.773 8.773
Net dividend per Share (Sen) 4.00 3.70 5.50 5.50 5.00
Statement of Financial Position

Non-current Assets 75,116 76,224 62,362 62,751 63,302
Current Assets 126,585 123,940 151,1121 138,0191 101,5182
Total Assets 201,701 200,164 213,474 200,770 164,820
Non-current Liabilities 0 0 545 511 475

Current Liabilities 25,757 25,950 31,2771 37,0261 26,3032
Total Liabilities 25,757 25,950 31,822 37,537 26,778
Share Capital 87,837 87,837 87,807 85,920 79,052

Share Premium 0 0 0 0 1,619
Share Option Reserve 0 1,841 1,847 936 460
Fair Value Reserve 3 3 3 3 3
Retained Profits 88,104 84,533 91,995 76,374 56,908
Total Equity 175,944 174,214 181,652 163,233 138,042
Net Assets per Share (RM) 0.72 0.71 0.743 0.673 0.583
Revenue Profit After Tax

RM (’000) RM (’000)
180,000 28,297 30,000
166,673
152,915 160,000
144,429 24,617
129,175 25,000
119,052 140,000
20,634
120,000 20,000
100,000
11,300 15,000
80,000 10,921
60,000 10,000
40,000
5,000
20,000
- -
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Total Equity Total Assets

RM (’000) 181,652 RM (’000)
200,000 213,474 250,000
175,944
174,214 201,701
163,233 200,770 200,164
164,820 200,000
150,000
138,042
150,000
100,000
100,000
50,000
50,000
- -
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Notes:
1
These figures have been restated following the first-time adoption of MFRS 15, Revenue from Contracts with Customers during the financial
year 2019.
2
The comparatives have not been restated following the first-time adoption of MFRS 15, Revenue from Contracts with Customers and
reclassifications made during the financial year 2019.
3
The comparative figures for Basic Earnings per Share and Net Assets per Share have been restated to reflect the adjustments arising from the
bonus issue completed during the financial year 2019.
29
OKA CORPORATION BHD
MANAGEMENT DISCUSSION AND ANALYSIS (cont’d)
Business & Operation Overview
The unprecedented COVID-19 pandemic that spreads throughout the world at the beginning of the year and the movement
restriction imposed to curb the pandemic caused massive disruptions to global supply chains and economic activities.
Construction activities have also been severely affected, resulting in a decrease in demand for concrete products. The pace of
recovery remains uncertain given current unfavourable market conditions.
The Malaysian government ordered all the non-essential sectors to close their business operations including those involved in
the manufacture of concrete products to shut down their production during the period of the Movement Control Order (MCO)
from 18 March 2020. The MCO also led to a temporary halt to construction activities including major infrastructure works such
as Mass Rapid Transit 2 (MRT 2), Light Rail Transit 3 (LRT 3), East Coast Rail Line (ECRL) and etc.
Following the government’s announcements to ease the MCO and revive economic activities, selected economic sectors,
including construction and building materials sectors have gradually resumed operations in strict compliance with prevention
measures and guidelines since mid-April 2020. Nonetheless, the prospect of the concrete industry remains positive despite the
significant impacts that the pandemic could have on the economy.
Financial Review
Given a highly volatile and challenging market backdrop, the Group registered a lower turnover of RM119.05 million, an 8%
drop from RM129.18 million last year. This significant drop was mainly due to the lower sales volume resulting from the reduced
demand by local market coupled with the temporary business closure during the MCO period starting on 18 March 2020.
The cost of sales decreased by 8%. Distribution expenses reduced from RM12.50 million to RM11.68 million, a decrease of
RM0.82 million. Administrative expenses decreased from RM11.65 million to RM10.64 million, a decrease of RM1.01 million.
The Group’s profit before tax for the financial year ended 31 March 2020 slightly increased by 3% from RM14.05 million to
RM14.49 million. Correspondingly, the Group’s basic Earnings per Share (“EPS”) was 4.60 sen as compared to 4.45 sen in the
previous financial year.
The Group is still consistently paying dividends. OKA has declared a total single-tier dividend of 4.00 sen per share during the
year. A single-tier interim dividend of 2.00 sen per share has been declared and paid on 30 April 2020. In addition, the Board
has proposed a final single-tier dividend of 2.00 sen per share to be paid in respect of the financial year ended 31 March 2020,
subject to shareholders’ approval at the forthcoming Annual General Meeting.
Financial Position
As at 31 March 2020, the Group’s total assets slightly increased by 0.8% from RM200.16 million to RM201.70 million mainly
due to increase in cash and cash equivalents by RM2.52 million, attributed by net cash generated from operating activities of
RM13.15 million. Net cash used in investing activities of RM1.55 million involved primarily the acquisition of a small piece of
land at Nilai for a consideration of RM1.20 million meant for Senai’s factory expansion. Financing activities in 2020 recorded a
net cash outflow of RM9.08 million mainly due to dividends paid during the financial year.
Total liabilities slightly decreased by 0.7% to RM25.76 million as compared to 31 March 2019. This was mainly due to decrease
in contract liabilities by RM0.69 million.
As at 31 March 2020, the Group’s statement of financial position remains strong with no borrowings. The shareholders’ funds
increased by 0.9% to RM175.94 million after netting-off the dividend appropriated during the financial year of RM9.57 million.
The Group continues to place a strong emphasis on cost and operating efficiency, cash flow as well as balance sheet
management to proactively manage its receivables and inventory levels.
Future Outlook and Prospects
The unprecedented outbreak of COVID-19 has spurred lockdowns across the world. The pandemic, which brought massive
disruptions to the economic growth and supply chains, set the global economy on the path of recession in 2020. The International
Monetary Fund (IMF) expects the global economy to shrink by 3% in 2020, driven by the COVID-19 pandemic, that will mark
the steepest downturn since the Great Depression of 1930s. Depending on the course of the pandemic, the prediction of a
partial rebound in the world economy in 2021 is uncertain. A longer pandemic that could continue into the third quarter of
the year could lead to a further 3% contraction in 2020 and a slower recovery in 2021 due to concerns on bankruptcies and
unemployment.
As the spread of the coronavirus has brought much of the world to a halt, nations have poured ever-more-massive amounts
of stimulus into their economies, while central banks have flooded markets with cheap money to ease financial strains. The
COVID-19 pandemic will have a significant impact on the global economy and disruption of supply chain which will potentially
result in market slowdown.
The pathway is challenging but OKA has never wavered and will continue their efforts and commitment to steer the Group out
of the headwinds targeting the path of growth and profitability and we foresee the rebound of global economy will happen once
the worst of the COVID-19 pandemic effects are over.
30
ANNUAL REPORT 2020
SUSTAINABILITY STATEMENT 2020
OKA Corporation Bhd and its subsidiaries (“OKA” Group) are committed to create sustainable value for our
stakeholders with positive economic, environmental and social impacts.
The Statement was prepared in accordance with the Main Market Listing Requirements and Sustainability Reporting
Guide and Toolkits issued by Bursa Malaysia Securities Berhad.
This statement covers the activities of OKA and all its subsidiary companies as included in the Group’s financial
statements for the period from 1 April 2019 to 31 March 2020, unless otherwise stated.
VISION: MISSION:
To be the leading integrated • On-going research and development

manufacturer of precast concrete • Committed pool of professional and skilled personnel
products in South East Asia • Serving esteemed customers through 5 branches
positioned at strategic locations throughout the country
We recognise that stakeholders are increasingly interested in understanding the approaches of organisations in
managing their Economic, Environmental and Social (“EES”) risks and opportunities, as well as the positive and
negative impact of business operations.
OKA has taken the initiative to incorporate EES considerations in its business model and risk management (financial
and non-financial) practices with the aim of creating long-term sustainable value.
Key sustainability aspects at OKA are managed across the various business units and overseen by different Business
Unit Head of Department. Underlying all efforts is an overriding commitment towards good governance which lies in
sound business ethics, viable policies and procedures across all areas of the Group. Our Group are guided by the
following governance and business ethics:
OUR CORE VALUES
Customer Integrity & Innovation Quality product

satisfaction Collaborative teamwork & service
The Group has instituted its Code of Ethics & Conduct which provides guidance in four key areas for professional
behaviour i.e. transparency, integrity, accountability and corporate social responsibility. In compliance with the laws
and regulations, we have put in place the policies and procedures such as Operation Risk Management and Safety,
Health & Environment Management to ensure the controls on the potential risks are adequate.
We also provide avenues for further mitigation measures, should needs arise, through our outsource internal control
audit function and regularly reviewed by the top management as well as the Whistleblowing Policy, in order to uphold
our commitments to high standards of ethical, moral and legal business conduct.
31 ANNUAL REPORT 2019 31

OKA CORPORATION BHD
SUSTAINABILITY STATEMENT 2020 (cont’d)
SUSTAINABILITY GOVERNANCE
At the highest level of governance in the Group, our Board of Directors is responsible for reviewing, adopting
and monitoring the practice of good corporate governance throughout the organisation and to drive the continued
integration of financial goals, business strategy and business model with EES sustainability considerations for the
protection of our shareholders and stakeholders’ interests.
The Risk Management (“RM”) Committee made up of senior Heads of Department of different business units and is
chaired by the Chief Financial Officer. He plays the role of Chief Sustainability Officer, reporting directly to the Board
of any sustainability matters from time to time.
BOARD OF DIRECTORS
Provides direction on the Group’s sustainability strategy. Ultimately accountable to review and approve
sustainability strategy
RISK MANAGEMENT CHAIRMAN
Chief Financial Officer

Overseeing, considering, planning and embedding sustainability strategies set by the Board and reports to the
Board on its progress.
RISK MANAGEMENT COMMITTEE
Senior Management of Respective Business Units

Responsible for the day-to-day operations of the Group, implementation of the risk management policies
adopted as well as to update any new material issues to the Risk Management Chairman (“RMC”)
MANAGING SUSTAINABILITY
We recognise the growing significance of sustainability in our business value. As we continuously build on this
foundation to further strengthen our business for the long-term, we are continuously enhancing our transparency
on disclosure of material matters relating to EES aspects. We are also actively taking steps to improve our internal
capabilities to manage, communicate and report on the progress of our sustainability related activities to all our
stakeholders.
32
ANNUAL REPORT 2020
Sustainability Matters
Economic Environment Social
● Economic and business ● Utilising resources wisely ● Health & safety

performance ● Efficient energy and water ● Employer/employee
● Products and technological usage relations
innovation ● Promoting 3Rs (reduce,
● Building quality and reuse and recycle) practice
customer trust
Despite the decrease of revenue The Group remains committed The Group recognises the
to RM119.05 million for the to preserving the environment. importance of employees as
financial year 2020 as compared The Board ensures the business the most valuable asset. We
to RM129.18 million recorded in activities are conducted in believe in creating a conducive
the preceding financial year, the compliance with the applicable workplace which emphasises
Group recorded a pre-tax profit of environment regulations and laws on health and safety for our
RM14.49 million, which was 3% at all times. Resources are used employees. Guidance and
higher than last year of RM14.05 efficiently to reduce wastage and trainings provided to improve our
million. minimise environmental impacts. employees’ competencies and
allow them to achieve their full
Recyclable materials are either
potential.
The Group still consistently reused or recycled. Lights and
paid sustainable dividends computers turn off when not in
The Group also complies with
to its shareholders while use. Occupational Safety and Health
maintaining prudent investment Act 1994 (OSHA) together with
and working capital for business other relevant legislations,
growth. It also aims to meet the regulations and code of
expectations of investors and practices. We are committed to
other stakeholders. create a safer and better work
place for them. Health and safety
The Group focuses on meeting awareness course is conducted
customer needs, delivering regularly to ensure that they are
quality products and improving aware of the potential hazards
operational efficiency and around them and also the safe
reliability to gain customer trust handling of machineries and
and satisfaction. We invest tools.
heavily on innovative technology
and machinery as it leads to The Group has constantly carried
production efficiency and an out various activities to improve
increase in product quality. OKA the workforce comradeship and
products are certified by MS ISO strengthen the relationships
among the employees. The In-
9001:2015. Furthermore, our
House Social Club has organised
products have attained product
an overseas trip to Perth during
certifications by SIRIM QAS,
Hari Raya period. The yearly
IKRAM QA and UKAS. company annual dinner was held
at The Tower Regency Hotel with
various fun activities and plenty
of lucky draws were given during
the night. Festival celebrations
were held such as Chinese New
Year’s “Yee Sang” tossing with
CNY hampers lucky draw. Social
club’s dinners and yoga classes
were also held during the year.
33 ANNUAL REPORT 2019 33

OKA CORPORATION BHD
STAKEHOLDER ENGAGEMENT
We continue to drive our operational sustainability through effective stakeholder engagement which is also essential
for good corporate governance. Engagement with stakeholders will help the Group to better understand the impacts
of OKA’s business operations to the economy, environment and society.
The stakeholder engagement process entails OKA to identify and assess the relevant stakeholders, understand
their needs and expectations in relation to the company sustainability performance. Organisation that anticipate the
potential risk and opportunities in stakeholder dialogues at an early stage are better positioned to drive strategic
direction, develop business strategies, implement process and sustainable operations for the businesses.
The Group values the feedback from its internal and external stakeholder groups through the use of stakeholder
analysis, together with our engagement activities, as follows:
STAKEHOLDERS STAKEHOLDER’S CONCERN ENGAGEMENT PLATFORM

Board of Directors • Continuous business growth, • Quarterly and ad-hoc Board
sustainability & profitability Meetings
• Group’s financial results • Annual General Meeting
• Monitoring and identification of • Company events
business risks
Shareholders / Investors • Company’s performance & • Annual general meeting
business growth • Quarterly financial results
• Business management & • Discussions with bankers and
corporate governance investors
• Risk and opportunities • Corporate website
Customers • Quality products and services • Face-to-face interaction
• Competitive pricing and on- • Customer feedback
time delivery
Suppliers • Materials & services quality • Face-to-face interaction
• Supplier performance • Supplier evaluation & review
• Delivery schedule • Quotation requests
Employees • Career development • Management meeting
opportunities • Regular engagement with
• Training and development management
• Health, safety & environment • Performance appraisals
• Company social events
Government & Regulators • Legislation & statutory • Advices & consultations and
compliance regulatory disclosures
• Listing & regulatory • Verification/ compliance audit
compliance
• Occupational Safety & Health
Communities • Social & environmental issues • Community programmes
• Supporting community • Official website & Annual
• Public awareness Report
34 OKA CORPORATION BHD 34

ANNUAL REPORT 2020
ANALYSIS OF SHAREHOLDINGS
AS AT 3 AUGUST 2020
Number of Issued Share : 245,395,350 ordinary shares

Issued Share Capital : RM87,836,442
Class of Shares : Ordinary shares
Voting Rights : 1 vote per ordinary share
Number of shareholders : 3,210
ANALYSIS OF SHAREHOLDINGS
Size of shareholdings Number of Percentage Number of Percentage

Holders % Shares * %
Less than 100 172 5.36 10,107 0.00

100 to 1,000 239 7.45 122,423 0.05
1,001 to 10,000 1,474 45.92 7,760,709 3.16
10,001 to 100,000 1,156 36.01 34,102,532 13.90
100,001 to 12,269,766(*) 168 5.23 76,562,495 31.20
12,269,767 and above (**) 1 0.03 126,837,084 51.69
Total 3,210 100.00 245,395,350 100.00

* - less than 5% of issued shares
** - 5% and above of issued shares
SUBSTANTIAL SHAREHOLDERS

Name of substantial Direct Percentage Deemed Percentage
shareholder interest % interest %
Ong Koon Ann 126,837,084 51.69 13,438,920# 5.48

Quah Seok Keng 8,662,920 3.53 131,613,084# 53.63
#
Deemed interest through their spouses and children’s interests in the Company pursuant to Section 8 of the
Companies Act, 2016 (“Act”).

DIRECTORS’ INTERESTS IN SHARES
Other than as disclosed below, there is no other Director of the Company who has interest, direct or deemed, in the
Company and its related corporations.
Direct Percentage Deemed Percentage

Name of Director interest % interest %
Shares in OKA Corporation Bhd
01. Ong Koon Ann 126,837,084 51.69 13,438,920# 5.48

02. Quah Seok Keng 8,662,920 3.53 131,613,084# 53.63
03. Ong Choo Ian 4,401,000 1.79 - -
04. Sharifuddin Bin Shoib, AMP 2,677,848 1.09 - -
05 Chok Hooa @ Chok Yin Fatt, PMP 1,459,003 0.60 - -
06 Gan Boon Koo @ Gan Boon Kiu 260,000 0.11 - -
#
Deemed interest through their spouses and children’s interests in the Company pursuant to Section 59(11) of
the Act.
35
OKA CORPORATION BHD
ANALYSIS OF SHAREHOLDINGS (cont’d)

AS AT 3 AUGUST 2020
LIST OF TOP THIRTY SHAREHOLDERS
Number of Percentage
No. Name Shares %

01 Ong Koon Ann 121,122,084 49.36
02 Citigroup Nominees (Tempatan) Sdn Bhd 8,527,500 3.48
Employees Provident Fund Board
03 Quah Seok Keng 6,587,295 2.68
04 Ong Koon Ann 5,715,000 2.33
05 Nik Mohamad Pena Bin Nik Mustapha 3,150,000 1.28
06 Lam Sang 2,669,400 1.09
07. Ong Choo Ian 2,250,000 0.92
08 RHB Capital Nominees (Tempatan) Sdn Bhd 2,182,848 0.89
Pledged Securities Account for Sharifuddin Bin Shoib (041004)
09 Ong Choo Ian 2,151,000 0.88
10 Quah Seok Keng 2,075,625 0.85
11 Neoh Choo Ee & Company, Sdn. Berhad 1,946,400 0.79
12 Yayasan Guru Tun Hussein Onn 1,500,000 0.61
13 Chok Hooa @ Chok Yin Fatt 1,459,003 0.59
14 Jailani Bin Abdullah 1,265,625 0.52
15 HSBC Nominees (Tempatan) Sdn Bhd 1,204,650 0.49
HSBC (M) Trustee Bhd For RHB Growth And Income Focus Trust
16 Affin Hwang Nominees (Asing) Sdn Bhd 1,123,500 0.46
DBS Vickers Secs (S) Pte Ltd For Asia Humanistic Capital Inc
17 Lai Ka Chee 1,107,187 0.45
18 Andrew Lim Cheong Seng 1,000,000 0.41
19 Cheong Man Weng 1,000,000 0.41
20 HSBC Nominees (Tempatan) Sdn Bhd 918,800 0.37
HSBC (M) Trustee Bhd For RHB Emerging Opportunity Unit Trust
21 Maybank Securities Nominees (Tempatan) Sdn Bhd 800,000 0.33
Pledged Securities Account For Cheong Kar Lai (Margin)
22 Ong Chooi Suat 700,000 0.28
23 CGS-CIMB Nominees (Tempatan) Sdn Bhd 670,250 0.27
Pledged Securities Account for Chin len Chee (Ipoh Garden-CL)
24 Chuah Seong Boon 596,250 0.24
25 Lim Soon Huat 562,500 0.23
26 Tok Chye Tiam 551,025 0.22
27 Tee Ah Ta @ Tee Sin Yong 503,250 0.21
28 CIMB Group Nominees (Asing) Sdn Bhd 500,000 0.20
Exempt An for DBS Bank Ltd (SFS)
29 Chang, Shin-Fang 495,000 0.20
30 Sharifuddin Bin Shoib 495,000 0.20

Total 174,829,192 71.24

36
ANNUAL REPORT 2020
LIST OF PROPERTIES
As At 31 March 2020
Carrying
Approximate amount @
Existing Date of Date of land/built up 31 March‘20
Location Description Use Purchase Valuation area Tenure RM
Lot 65305, Hakmilik 110988 Land and Industrial 26-Jun-97 4.8 acres Freehold
Mukim of Sungai Terap factory
District of Kinta, Kinta, building
Perak Darul Ridzuan
Perak Darul Ridzuan
Perak Darul Ridzuan
Perak Darul Ridzuan
29-May-12 13,149,903
Perak Darul Ridzuan
Perak Darul Ridzuan
Perak Darul Ridzuan
Perak Darul Ridzuan
Lot 13699, Title No. Geran Land Industrial 7-Apr-03 1-Jun-12 10.9 acres Freehold 765,000
45871, Mukim Sungai Raya,
District of Kinta, Kinta,
Perak Darul Ridzuan
Geran 245335, Lot 305844 Land and Industrial 22-Oct-02 29-May-12 9,388.6 m2 Leasehold 2,495,577
Mukim Sg. Terap, factory
Daerah Kinta, Kinta, building
Perak Darul Ridzuan
Lot 6937N, Geran 38231 21/2 storey Commercial 5-Mar-83 29-May-12 2,220 ft2 Freehold 226,350
Town of Ipoh, District of Kinta shoplot
585 & 585A, Jalan Kuala (aged 37
Kangsar years)
Ipoh, Perak Darul Ridzuan
Lot7683, No. HM00126601 Land Power 14-May-02
Mukim Setul, Daerah Seremban Sub-station
Negeri Sembilan Darul Khusus
Lot7682, No. HM00126600 Land Industrial 14-May-02
Mukim Setul, Daerah Seremban
Lot7685, No. HM00126603 Land and Industrial 14-May-02 29-May-12 25,661.9 m2 Freehold 4,721,342
Mukim Setul, Daerah Seremban factory
Negeri Sembilan Darul Khusus building
Lot7684, No. HM00126602 land Industrial 14-May-02
76995 Mukim Setul, Daerah
Seremban
Lot 29110, Hakmilik 5904 Land Industrial 2-Oct-02 743,000
Mukim Setul, Daerah
Seremban,
Negeri Sembilan Darul Khusus 29-May-12 8.0 acres Freehold
Lot 3731 Hakmilik 68647 Land Industrial 29-Mar-05 1,657,000
Mukim Setul, Daerah Seremban
37
OKA CORPORATION BHD
LIST OF PROPERTIES (cont’d)

As At 31 March 2020
Carrying
Approximate amount @
Existing Date of Date of land/built up 31 March ‘20
Location Description Use Purchase Valuation area Tenure RM
Hakmilik 1147, Lot 548 Land and Industrial 25-Sep-02
Mukim Senai, Kulai, Daerah factory
Johor Bahru building
Johor Darul Takzim
H.S.(M) 2473,PTD 37446, Land Industrial 3-Dec-04
Hakmilik 317 Lot 547,
30-May-12
Mukim Senai, Kulai, Daerah 22.3 acres Freehold 12,550,449
Johor Bahru
Johor Darul Takzim
Lot No. PTD 37445, Title No. Land Industrial 26-Apr-06 1,592,000
HS(M) 2474 Mukim Senai, Kulai
Daerah Johor Bahru, Johor
Darul Takzim
EMR 1041, GM279 , Lot 512 Land Agriculture 31-July-18 Nil 8.9 acres Freehold 10,445,771
Hakmilik 279
Mukim Senai-Kulai, Daerah
Johor Bahru,
Johor Darul Takzim
EMR 2612, Lot 515, Land Industrial 6-Aug-09 30-May-12 8.3 acres Freehold 4,450,000
Hakmilik 330
Mukim Senai-Kulai, Daerah
Johor Bahru,
Johor Darul Takzim
Lot 2917 Geran No.5781 Land and Industrial 19-Jun-06 31-May-12 16.5 acres Freehold 2,792,835
Mukim Kuala Kuantan, Daerah factory
Kuantan building
Pahang Darul Makmur
Lot 986 & Lot 2354 Land Industrial 20-Nov-03 31-May-12 7.9 acres Freehold 1,350,000
Hakmilik 1524 & Hakmilik 1525
Mukim Kuala Kuantan, Daerah
Kuantan
Pahang Darul Makmur
H.S.(D) 72875 No. PT583 Land and Industrial 17-Oct-08 4-Jun-12 39,355 m2 Freehold 3,199,741
Pekan Bukit Selambau, Daerah factory
Kuala Muda building
Kedah Darul Aman
H.S.(D) 72876 No. PT584 Land Industrial 12-May-09 4-Jun-12 8,845 m2 Freehold 385,000
Pekan Bukit Selambau, Daerah
Kuala Muda
Kedah Darul Aman
Parcel No. NW-02-30, Shoplot Commercial 18-Feb-14 NIL 68.8 m2 Leasehold 238,452
Cova Square (741 ft2 )
Jalan Teknologi, Kota
Damansara, PIU5,
47810 Petaling Jaya. Selangor
Master title PN. 80337,
Lot 54636,
Pekan Baru Sungai Buloh,
Daerah Petaling, Selangor
Darul Ehsan
Hakmilik Geran:555366, Residential Commercial 31-Mar-19 NIL 1,808 ft2 Freehold 1,080,252
Lot 165604 (167 m2)
L125, Double Storey Superlink
House: Estuari Gardens,
Laman Estuari, Nusajaya
(Johor) - IP
GRN230314, 76-B, PA73902, Shoplot Commercial 19-July-18 NIL 1,646.9 ft2 Freehold 1,351,000
Lot33995 Pekan Baru Sungai
Buloh, 37, Jlan BRP 1/4, Bukit
Rahman Putra, Sungai Buloh
Total (RM) 63,193,672
38
REPORTS &
FINANCIAL STATEMENTS
Directors’ Report 40 - 44
Consolidated Statement of Financial Position 45
Consolidated Statement of Prot or Loss and 46

Other Comprehensive Income
Consolidated Statement of Changes in Equity 47
Consolidated Statement of Cash Flows 48 - 49
Statement of Financial Position 50
Statement of Profit or Loss and Other 51

Comprehensive Income
Statement of Changes in Equity 52

Statement of Cash Flows 53
to the Financial Statements

Notes 54 - 99

Statement by Directors 100

Statutory Declaration 101

Independent Auditors’ Report 102 - 105
OKA CORPORATION BHD
DIRECTORS’ REPORT
FOR THE YEAR ENDED 31 MARCH 2020
The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the
Company for the financial year ended 31 March 2020.
Principal activities
The principal activity of the Company is that of investment holding whilst the principal activities of the subsidiaries
are as stated in Note 6 to the financial statements. There has been no significant change in the nature of these
activities during the financial year.
Subsidiaries
The details of the Company’s subsidiaries are disclosed in Note 6 to the financial statements.
Results
Group Company
RM RM
Profit for the year attributable to owners of the Company 11,300,146 9,252,875
Reserves and provisions
There were no material transfers to or from reserves and provisions during the financial year under review except as
disclosed in the financial statements.
Dividends
Since the end of the previous financial year, the amount of dividends paid by the Company were as follows :
i) In respect of the financial year ended 31 March 2019 as reported in the Directors’ Report of that year :
• an interim single-tier dividend of 1.80 sen per ordinary share totalling RM4,417,116 paid on 26 April 2019.
• a final single-tier dividend of 1.90 sen per ordinary share totalling RM4,662,509 paid on 15 November
2019.
ii) In respect of the financial year ended 31 March 2020 :
• an interim single-tier dividend of 2.00 sen per ordinary share totalling RM4,907,907 paid on 30 April 2020.
A final single-tier dividend recommended by the Directors in respect of the financial year ended 31 March 2020 is
2.00 sen per ordinary share, subject to the approval of shareholders at the forthcoming Annual General Meeting.
Directors of the Company
Directors who served during the financial year and until the date of this report are:
Sharifuddin Bin Shoib, AMP

Ong Koon Ann
Quah Seok Keng
Chok Hooa @ Chok Yin Fatt, PMP
Gan Boon Koo @ Gan Boon Kiu
Ong Choo Ian
40
ANNUAL REPORT 2020
DIRECTORS’ REPORT (cont’d)

For The Year Ended 31 March 2020
Directors’ interests in shares
The direct and deemed interests in the ordinary shares and options over ordinary shares of the Company of those
who were Directors at financial year end (including the interests of the children of the Directors who themselves are
not Directors of the Company) as recorded in the Register of Directors’ Shareholdings are as follows:
Number of ordinary shares

Balance at Balance at
1.4.2019 Bought (Sold) 31.3.2020
Direct interest in the Company:

- own 2,677,848 - - 2,677,848
Ong Koon Ann
- own 125,518,084 1,319,000 - 126,837,084
- others* 375,000 - - 375,000
Quah Seok Keng
- own 8,662,920 - - 8,662,920
- others* 375,000 - - 375,000
Chok Hooa @ Chok Yin Fatt, PMP
- own 1,050,003 350,000 - 1,400,003
Ong Choo Ian
- own 4,350,000 51,000 - 4,401,000
Gan Boon Koo @ Gan Boon Kiu
- own 315,000 - (55,000) 260,000

Deemed interest in the Company:

Ong Koon Ann 13,387,920 51,000 - 13,438,920
Quah Seok Keng 130,243,084 1,370,000 - 131,613,084
Number of options over ordinary shares

Balance Balance
Option at at
price 1.4.2019 Granted Exercised Expired 31.3.2020

Ong Koon Ann 1.01 856,500 - - (856,500) -
Chok Hooa @ Chok Yin Fatt, PMP 1.01 225,000 - - (225,000) -
Sharifuddin Bin Shoib, AMP 1.01 225,000 - - (225,000) -
Gan Boon Koo @ Gan Boon Kiu 1.01 225,000 - - (225,000) -
Quah Seok Keng 1.01 856,500 - - (856,500) -
Ong Choo Ian 1.01 856,500 - - (856,500) -
* Miss Ong Ee Dith is the daughter of Mr. Ong Koon Ann and Madam Quah Seok Keng. In accordance with
Section 59(11)(c) of the Companies Act 2016, the direct and deemed interests of Miss Ong Ee Dith in the
shares of the Company and of its related corporations (other than wholly-owned subsidiaries) shall be treated
as the interests of Mr. Ong Koon Ann and Madam Quah Seok Keng.
By virtue of their interests in the shares of the Company, Mr. Ong Koon Ann and Madam Quah Seok Keng are also
deemed interested in the shares of all subsidiaries during the financial year to the extent that the Company has an
interest.
Directors’ benefits
Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive
any benefit (other than those fees and other benefits included in the aggregate amount of remuneration received or
due and receivable by Directors as shown in the financial statements of the Company) by reason of a contract made
by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with
a company in which the Director has a substantial financial interest, except as disclosed in Note 24 to the financial
statements.
There were no arrangements during and at the end of the financial year which had the object of enabling Directors
of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any
other body corporate apart from the issue of the Executives’ Share Option Scheme (“ESOS”).
41
OKA CORPORATION BHD

Issue of shares and debentures
There were no changes in the issued and paid-up capital of the Company and no debentures were issued during
the financial year.
Options granted over unissued shares
No options were granted to any person to take up unissued shares of the Company during the financial year apart
from the issue of options pursuant to the ESOS.
At an extraordinary general meeting held on 28 August 2014, the Company’s shareholders approved the establishment
of the new ESOS involving up to 15% of the issued and paid-up share capital of the Company to eligible Directors
and employees of the Group.
The options offered to take up unissued shares and the option prices are as follows:
Number of options over ordinary shares

Balance Balance
Option at at
Date of offer price 1.4.2019 Granted Exercised Expired 31.3.2020

5.1.2015 RM0.42 60,000 - - (60,000) -
5.1.2016 RM0.57 123,000 - - (123,000) -
5.1.2017 RM0.75 908,400 - - (908,400) -
5.1.2018 RM1.01 6,477,750 - - (6,477,750) -
7,569,150 - - (7,569,150) -
The salient features of the scheme are, inter alia, as follows:
(a) The maximum number of new shares which may be available under the scheme shall not in aggregate exceed
more than 15% of the issued and paid-up share capital of the Company at any one time.
(b) Eligible executives are executive employees (including Executive Directors and Non-Executive Directors) of
any company (which is not dormant) within the Group who are citizens or residents of Malaysia, at least 18
years of age on 5 January 2015 and must have been employed for a continuous period of at least two (2) years
in the Group prior to and up to the date of offer, excluding service during the probation period.
(c) No eligible executives are allowed to participate in more than one ESOS implemented by any company within
the Group.
(d) The maximum number of new shares that may be offered and allotted to an eligible executive shall be
determined at the discretion of the ESOS Committee after taking into consideration the performance, seniority
and years of service and such other offer factors that the ESOS Committee may deem relevant.
(e) The option price shall be the higher of the price to be determined by the ESOS Committee based on the five
(5)-day weighted average market price of the Company’s shares as shown in the daily official list of Bursa
Malaysia Securities Berhad immediately preceding the offer date of the option, with a discount of not more than
10% or the par value of the Company’s shares.
(f) All remaining unexercised options shall lapse and/or be deemed to be cancelled and cease to be exercisable
upon the cessation of employment with a company of the Group, upon winding up or liquidation of the Company
or upon bankruptcy of the employee.
(g) The ESOS shall continue to be in force for a period of five (5) years from 5 January 2015 and the Board of
Directors have decided not to extend the duration for a maximum of five (5) years.
The exercise period for the above options expired on 4 January 2020.
42
ANNUAL REPORT 2020

Indemnity and insurance costs
During the financial year, the total amount of insurance cost effected for Directors or officers of the Company is
RM10,000. However, there was no indemnity given to Directors or officers of the Company during the financial year.
There was no indemnity given to or insurance effected for auditors of the Company during the financial year.
Other statutory information
Before the financial statements of the Group and of the Company were made out, the Directors took reasonable
steps to ascertain that:
(i) all known bad debts have been written off and adequate provision made for doubtful debts, and
(ii) any current assets which were unlikely to be realised in the ordinary course of business have been written
down to an amount which they might be expected so to realise.
At the date of this report, the Directors are not aware of any circumstances:
(i) that would render the amount written off for bad debts or the amount of the provision for doubtful debts in the
Group and in the Company inadequate to any substantial extent, or
(ii) that would render the value attributed to the current assets in the financial statements of the Group and of the
Company misleading, or
(iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the
Group and of the Company misleading or inappropriate, or
(iv) not otherwise dealt with in this report or the financial statements that would render any amount stated in the
financial statements of the Group and of the Company misleading.
At the date of this report, there does not exist:
(i) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year
and which secures the liabilities of any other person, or
(ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial
year.
No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become
enforceable within the period of twelve months after the end of the financial year which, in the opinion of the
Directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations as
and when they fall due.
In the opinion of the Directors, the financial performances of the Group and of the Company for the financial year
ended 31 March 2020 have not been substantially affected by any item, transaction or event of a material and
unusual nature nor has any such item, transaction or event occurred in the interval between the end of that financial
year and the date of this report.
43
OKA CORPORATION BHD

Auditors
The auditors, KPMG PLT, have indicated their willingness to accept re-appointment.
The auditors’ remuneration is disclosed in Note 17 to the financial statements.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
.......................................……………………...
Director
.......................................……………………...
Ong Koon Ann
Director
Ipoh
Date : 17 August 2020
44
ANNUAL REPORT 2020
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS AT 31 MARCH 2020
Note 2020 2019

RM RM

Assets

Property, plant and equipment 3 69,906,907 71,785,781
Right-of-use assets 4 1,048,451 -
Investment property 5 2,657,602 2,713,161
Other investments 7 11,920 11,920
Deferred tax assets 8 1,490,783 1,712,918

Total non-current assets 75,115,663 76,223,780

Inventories 9 41,206,064 41,109,363
Receivables, deposits and prepayments 10 27,230,803 30,749,377
Current tax assets 6,083,406 2,536,433
Cash and cash equivalents 11 52,064,881 49,544,473

Total current assets 126,585,154 123,939,646

Total assets 201,700,817 200,163,426

Equity

Share capital 12 87,836,442 87,836,442
Reserves 13 88,106,901 86,377,171
Total equity attributable to owners of the Company 175,943,343 174,213,613

Liabilities

Payables and accruals 14 24,752,832 24,256,185
Contract liabilities 15 1,004,642 1,693,628

Total current liabilities 25,757,474 25,949,813

Total liabilities 25,757,474 25,949,813

Total equity and liabilities 201,700,817 200,163,426
The notes on pages 54 to 99 are an integral part of these financial statements.
45
OKA CORPORATION BHD
CONSOLIDATED STATEMENT OF PROFIT

OR LOSS AND OTHER COMPREHENSIVE INCOME
Note 2020 2019
RM RM

Revenue 16 119,052,313 129,175,435

Cost of sales (83,496,455) (90,941,637)

Gross profit 35,555,858 38,233,798

Distribution expenses (11,678,707) (12,499,817)

Administrative expenses (10,644,666) (11,539,043)

Other operating income 622,000 633,991

Net loss on impairment of financial instruments (943,032) (2,510,724)

Results from operating activities 12,911,453 12,318,205

Interest income 1,574,679 1,730,482

Profit before tax 17 14,486,132 14,048,687

Income tax expense 19 (3,185,986) (3,127,708)

Profit for the year representing total
comprehensive income for the year 11,300,146 10,920,979

Earnings per ordinary share:

Basic (sen) 20 4.60 4.45

Diluted (sen) 20 N/A 4.45
46
ANNUAL REPORT 2020
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Attributable to owners of the Company

Share Fair
Share option value Retained Total
capital reserve reserve profits equity
Note RM RM RM RM RM

At 1 April 2018 87,807,842 1,846,511 3,380 83,755,308 173,413,041

Profit for the year representing
total comprehensive income
for the year - - - 10,920,979 10,920,979

Dividends to owners of the Company 21 - - - (10,143,007) (10,143,007)
Issue of new ordinary shares pursuant
to ESOS 12 22,600 - - - 22,600

Total transactions with owners of
the Company 22,600 - - (10,143,007) (10,120,407)

Transfer to share capital for share
option exercised 6,000 (6,000) - - -

At 31 March 2019 87,836,442 1,840,511 3,380 84,533,280 174,213,613

Note 12 Note 13
At 1 April 2019 87,836,442 1,840,511 3,380 84,533,280 174,213,613

Profit for the year representing
total comprehensive income
for the year - - - 11,300,146 11,300,146

Dividends to owners of the Company 21 - - - (9,570,416) (9,570,416)

the Company - - - (9,570,416) (9,570,416)

Transfer to retained profits for share
options expired - (1,840,511) - 1,840,511 -

At 31 March 2020 87,836,442 - 3,380 88,103,521 175,943,343

Note 12 Note 13
47
OKA CORPORATION BHD
CONSOLIDATED STATEMENT OF CASH FLOWS

Note 2020 2019

RM RM

Cash flows from operating activities

Profit before tax 14,486,132 14,048,687

Adjustments for:
Depreciation of :
- investment property 5 55,559 31,940
- property, plant and equipment 3 4,017,110 4,008,621
- right-of-use assets 4 133,004 -
Plant and equipment written off 17 2,543 310
Gain on disposals of :-
- Property, plant and equipment 17 (79,307) (48,132)
- Asset held for sale 17 - (31,859)
Interest income 17 (1,523,817) (1,714,866)
Overdue interest income 17 (50,862) (15,616)
Dividend income 17 (370) (431)

Operating profit before changes in working capital 17,039,992 16,278,654

Changes in working capital:
Receivables, deposits and prepayments 3,347,574 10,770,219
Contract liabilities (688,986) 319,799
Inventories (96,701) 239,634
Payables and accruals 5,856 (4,765,286)

Cash generated from operations 19,607,735 22,843,020

Income tax paid (6,510,824) (7,347,703)
Overdue interest received 50,862 15,616

Net cash from operating activities 13,147,773 15,510,933
Cash flows from investing activities

Additions of :-
- Property, plant and equipment 3 (3,151,239) (14,887,678)
- Investment property 5 - (1,307,951)
Proceeds from disposal of :-
- Asset held for sale - 672,109
- Property, plant and equipment 79,312 54,288
Interest received 1,523,817 1,714,866
Dividend income received 17 370 431

Net cash used in investing activities (1,547,740) (13,753,935)

Cash flows from financing activities

Dividends paid (9,079,625) (8,997,429)
Proceeds from issue of shares - 22,600

Net cash used in financing activities (9,079,625) (8,974,829)

Net increase/(decrease) in cash and cash equivalents 2,520,408 (7,217,831)
Cash and cash equivalents at beginning of year 49,525,723 56,743,554

Cash and cash equivalents at end of year 52,046,131 49,525,723
48
ANNUAL REPORT 2020
CONSOLIDATED STATEMENT OF CASH FLOWS (cont’d)

A Cash and cash equivalents
Cash and cash equivalents included in the consolidated statement of cash flows are stated net of fixed deposits
pledged with a licensed bank and comprise the following statement of financial position amounts:
Note 2020 2019

RM RM

Fixed deposits placed with a licensed bank 11 18,750 18,750
Less : Pledged deposits 11 (18,750) (18,750)

- -
Short-term funds placed with financial institutions 11 49,871,066 43,997,420
Cash and bank balances 11 2,175,065 5,528,303

52,046,131 49,525,723
B Cash outflows for leases as a lessee
Note 2020 2019

RM RM

Included in net cash from operating activities
Payment relating to short-term leases 17 1,812,519 -

Total cash outflows for leases 1,812,519 -
49
OKA CORPORATION BHD
STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2020
Note 2020 2019

RM RM

Assets

Property, plant and equipment 3 1,592,011 1,592,011
Investment property 5 7,635,000 7,635,000
Interests in subsidiaries 6 77,243,989 77,849,806

Total non-current assets 86,471,000 87,076,817

Receivables, deposits and prepayments 10 9,801,000 9,001,000
Current tax assets 12,818 15,080
Cash and cash equivalents 11 30,878 13,099

Total current assets 9,844,696 9,029,179

Total assets 96,315,696 96,105,996

Equity

Share capital 12 87,836,442 87,836,442
Reserves 13 3,092,246 3,409,787

Total equity attributable to owners of the Company 90,928,688 91,246,229

Current liability

Payables and accruals 14 5,387,008 4,859,767

Total liability 5,387,008 4,859,767

Total equity and liability 96,315,696 96,105,996
50
ANNUAL REPORT 2020
STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME
Note 2020 2019
RM RM

Revenue 16 9,800,000 9,000,000

Administrative expenses (3,427,125) (3,452,414)

Other operating income 2,940,000 2,940,000

Net loss on impairment of financial instruments (60,000) (144,000)

Profit before tax 17 9,252,875 8,343,586

Income tax expense 19 - -

Profit for the year representing total comprehensive
income for the year 9,252,875 8,343,586
51
OKA CORPORATION BHD
STATEMENT OF CHANGES IN EQUITY

Attributable to owners of the Company

Share
Share option Retained Total
capital reserve profits equity
Note RM RM RM RM
At 1 April 2018 87,807,842 1,846,511 3,368,697 93,023,050

comprehensive income for the year - - 8,343,586 8,343,586

Dividends to owners of the Company 21 - - (10,143,007) (10,143,007)
to ESOS 12 22,600 - - 22,600

the Company 22,600 - (10,143,007) (10,120,407)

Transfer to share capital for share
options exercised 6,000 (6,000) - -

At 31 March 2019/1 April 2019 87,836,442 1,840,511 1,569,276 91,246,229

comprehensive income for the year - - 9,252,875 9,252,875

Dividends to owners of the Company 21 - - (9,570,416) (9,570,416)

the Company - - (9,570,416) (9,570,416)

Transfer to retained profits for share options
expired - (1,840,511) 1,840,511 -

At 31 March 2020 87,836,442 - 3,092,246 90,928,688

Note 12 Note 13
52
ANNUAL REPORT 2020
STATEMENTS OF CASH FLOWS

Note 2020 2019

RM RM

Cash flows from operating activities

Profit before tax 9,252,875 8,343,586

Adjustments for:
Dividend income 17 (9,800,000) (9,000,000)
Impairment loss on amount due from subsidiaries 17 60,000 144,000

Operating loss before changes in working capital (487,125) (512,414)

Changes in working capital:
Payables and accruals 36,450 9,514
Amount due from subsidiaries 545,817 480,547

Cash generated from/(used in) operations 95,142 (22,353)

Income tax refunded 2,262 2,661
Dividend received 9,000,000 9,000,000

Net cash from operating activities 9,097,404 8,980,308

Cash flows from financing activities

Dividends paid (9,079,625) (8,997,429)
Proceeds from issue of shares - 22,600

Net cash used in financing activities (9,079,625) (8,974,829)

Net increase in cash and cash equivalents 17,779 5,479
Cash and cash equivalents at beginning of year 13,099 7,620

Cash and cash equivalents at end of year 11 30,878 13,099
53
OKA CORPORATION BHD
NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
OKA Corporation Bhd is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the
Main Market of Bursa Malaysia Securities Berhad. The address of its registered office and principal place of business is
as follows:
Registered office and principal place of business
6 Lebuhraya Chateau
Off Persiaran Kampar
30250 Ipoh
Perak Darul Ridzuan
The consolidated financial statements of the Company as at and for the financial year ended 31 March 2020 comprise
the Company and its subsidiaries (together referred to as the “Group” and individually referred to as “Group entities”). The
financial statements of the Company as at and for the financial year ended 31 March 2020 do not include other entities.
The principal activity of the Company is that of investment holding and the principal activities of the subsidiaries are stated
in Note 6 to the financial statements.
The financial statements were authorised for issue by the Board of Directors on 17 August 2020.
1. BASIS OF PREPARATION
1.1 Statement of compliance
The financial statements of the Group and the Company have been prepared in accordance with
Malaysian Financial Reporting Standards (“MFRSs”), International Financial Reporting Standards and
the requirements of the Companies Act 2016 in Malaysia.
The following are accounting standards, interpretations and amendments that have been issued by the
Malaysian Accounting Standards Board (“MASB”) but have not been adopted by the Group and the
Company :
MFRSs, interpretations and amendments effective for annual periods beginning on or after 1
January 2020
• Amendments to MFRS 3, Business Combinations - Definition of a Business
• Amendments to MFRS 101, Presentation of Financial Statements and MFRS 108, Accounting
Policies, Changes in Accounting Estimates and Errors - Definition of Material
• Amendments to MFRS 9, Financial Instruments, MFRS 139, Financial Instruments: Recognition and
Measurement and MFRS 7, Financial Instruments: Disclosures - Interest Rate Benchmark Reform
MFRSs, interpretations and amendments effective for annual periods beginning on or after 1 June 2020
• Amendment to MFRS 16, Leases – Covid-19-Related Rent Concessions
MFRSs, interpretations and amendments effective for annual periods beginning on or after 1
January 2022
• Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual
Improvements to MFRS Standards 2018-2020)
• Amendments to MFRS 3, Business Combinations - Reference to the Conceptual Framework
• Amendments to MFRS 9, Financial Instruments (Annual Improvements to MFRS Standards 2018-
2020)
• Amendments to Illustrative Examples accompanying MFRS 16, Leases (Annual Improvements to
MFRS Standards 2018-2020)
• Amendments to MFRS 116, Property, Plant and Equipment - Proceeds before Intended Use
• Amendments to MFRS 137, Provisions, Contingent Liabilities and Contingent Assets - Onerous
Contracts - Cost of Fulfilling a Contract
• Amendments to MFRS 141, Agriculture (Annual Improvements to MFRS Standards 2018-2020)
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NOTES TO THE FINANCIAL STATEMENTS (cont’d)

31 March 2020
1. BASIS OF PREPARATION (cont’d)
1.1 Statement of compliance (cont’d)
MFRSs, interpretations and amendments effective for annual periods beginning on or after 1 January 2023
• MFRS 17, Insurance Contracts

• Amendments to MFRS 101, Presentation of Financial Statements - Classification of Liabilities as
Current or Non-current
MFRSs, interpretations and amendments effective for annual periods beginning on or after a date yet
to be confirmed
• Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in
Associates and Joint Ventures - Sale or Contribution of Assets between an Investor and its Associate
or Joint Venture
The Group and the Company plan to apply the abovementioned accounting standards, interpretations and
amendments, where applicable, in the respective financial years when the abovementioned accounting
standards, interpretations and amendments become effective.
The initial application of the accounting standards, interpretations or amendments is not expected to have
any material financial impacts to the current period and prior period financial statements of the Group and
the Company.
1.2 Basis of measurement
The financial statements have been prepared on the historical cost basis other than as disclosed in Note 2
to the financial statements.
1.3 Functional and presentation currency
These financial statements are presented in Ringgit Malaysia (“RM”), which is the Company’s functional
currency. All financial information is presented in RM, unless otherwise stated.
1.4 Use of estimates and judgements
The preparation of the financial statements in conformity with MFRSs requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates
are recognised in the period in which the estimates are revised and in any future periods affected.
There are no significant areas of estimation uncertainty and critical judgements in applying accounting
policies that have significant effect on the amounts recognised in the financial statements other than those
disclosed in Note 9 – Inventories and Note 10 – Receivables, deposits and prepayments.
2. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to the periods presented in these financial
statements and have been applied consistently by Group entities, unless otherwise stated.
Arising from the adoption of MFRS 16, Leases, there are changes to the accounting policies applied to lease
contracts entered into by the Group entities as compared to those applied in the previous financial statements.
The impacts arising from the changes are disclosed in Note 29 to the financial statement.
2.1 Basis of consolidation
(i) Subsidiaries
Subsidiaries are entities, including structured entities, controlled by the Company. The financial
statements of subsidiaries are included in the consolidated financial statements from the date that
control commences until the date that control ceases.
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2. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.1 Basis of consolidation (cont’d)
(i) Subsidiaries (cont’d)
The Group controls an entity when it is exposed, or has rights, to variable returns from its involvement
with the entity and has the ability to affect those returns through its power over the entity. Potential voting
rights are considered when assessing control only when such rights are substantive. The Group also
considers it has de facto power over an investee when, despite not having the majority of voting rights, it
has the current ability to direct the activities of the investee that significantly affect the investee’s return.
Investments in subsidiaries are measured in the Company’s statement of financial position at cost less
any impairment losses, unless the investment is classified as held for sale or distribution. The cost of
investments includes transaction costs.
(ii) Business combinations
Business combinations are accounted for using the acquisition method from the acquisition date, which
is the date on which control is transferred to the Group.
For new acquisitions, the Group measures the cost of goodwill at the acquisition date as:
• the fair value of the consideration transferred; plus
• the recognised amount of any non-controlling interests in the acquiree; plus
• if the business combination is achieved in stages, the fair value of the existing equity interest in
the acquiree; less
• the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities
assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
For each business combination, the Group elects whether it measures the non-controlling interests in
the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets at
the acquisition date.
Transaction costs, other than those associated with the issue of debt or equity securities, that the
Group incurs in connection with a business combination are expensed as incurred.
(iii) Loss of control
Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities of the former
subsidiary, any non-controlling interests and the other components of equity related to the former
subsidiary from the consolidated statement of financial position. Any surplus or deficit arising on the
loss of control is recognised in profit or loss. If the Group retains any interest in the former subsidiary,
then such interest is measured at fair value at the date that control is lost. Subsequently, it is accounted
for as an equity-accounted investee or as a financial asset depending on the level of influence retained.
(iv) Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-
group transactions, are eliminated in preparing the consolidated financial statements.
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2.2 Financial instruments
(i) Recognition and initial measurement
A financial asset or a financial liability is recognised in the statements of financial position when, and
only when, the Group or the Company becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without significant financing component) or a financial
liability is initially measured at fair value plus or minus, for an item not at fair value through profit or loss,
transaction costs that are directly attributable to its acquisition or issuance. A trade receivable without
a significant financing component is initially measured at the transaction price.
An embedded derivative is recognised separately from the host contract where the host contract is not
a financial asset, and accounted for separately if, and only if, the derivative is not closely related to
the economic characteristics and risks of the host contract and the host contract is not measured at
fair value through profit or loss. The host contract, in the event an embedded derivative is recognised
separately, is accounted for in accordance with policy applicable to the nature of the host contract.
(ii) Financial instrument categories and subsequent measurement
Financial assets
Categories of financial assets are determined on initial recognition and are not reclassified subsequent
to their initial recognition unless the Group or the Company changes its business model for managing
financial assets in which case all affected financial assets are reclassified on the first day of the first
reporting period following the change of the business model.
(a) Amortised cost
Amortised cost category comprises financial assets that are held within a business model whose
objective is to hold assets to collect contractual cash flows and its contractual terms give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. The financial assets are not designated as fair value through profit or loss.
Subsequent to initial recognition, these financial assets are measured at amortised cost using the
effective interest method. The amortised cost is reduced by impairment losses. Interest income,
foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or
loss on derecognition is recognised in profit or loss.
Interest income is recognised by applying effective interest rate to the gross carrying amount
except for credit impaired financial assets (see Note 2.9(i)) where the effective interest rate is
applied to the amortised cost.
(b) Fair value through other comprehensive income
(i) Equity investments
This category comprises investment in equity that is not held for trading, and the Group and
the Company irrevocably elect to present subsequent changes in the investment’s fair value
in other comprehensive income. This election is made on an investment-by-investment basis.
Dividends are recognised as income in profit or loss unless the dividend clearly represents
a recovery of part of the cost of investment. Other net gains and losses are recognised
in other comprehensive income. On derecognition, gains and losses accumulated in other
comprehensive income are not reclassified to profit or loss.
All financial assets, except for equity investments measured at fair value through other comprehensive
income, are subject to impairment assessment (see Note 2.9(i)).
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2.2 Financial instruments (cont’d)
(ii) Financial instrument categories and subsequent measurement (cont’d)
Financial liabilities
The categories of financial liabilities at initial recognition are as follows :
Amortised cost
Financial liabilities are subsequently measured at amortised cost using the effective interest method.
Interest expense and foreign exchange gains and losses are recognised in the profit or loss. Any gains
or losses on derecognition are also recognised in the profit or loss.
(iii) Regular way purchase or sale of financial assets
A regular way purchase or sale of financial assets is recognised and derecognised, as applicable, using
trade date or settlement date accounting in the current year.
Trade date accounting refers to :
(a) the recognition of an asset to be received and the liability to pay for it on the trade date, and
(b) derecognition of an asset that is sold, recognition of any gain or loss on disposal and the recognition
of a receivable from the buyer for payment on the trade date.
Settlement date accounting refers to :
(a) the recognition of an asset on the day it is received by the Group or the Company, and
(b) derecognition of an asset and recognition of any gain or loss on disposal on the day that is
delivered by the Group or the Company.
Any change in the fair value of the asset to be received during the period between the trade date and
the settlement date is accounted in the same way as it accounts for the acquired asset.
Generally, the Group or the Company applies settlement date accounting unless otherwise stated for
the specific class of asset.
(iv) Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in
accordance with the original or modified terms of a debt instrument.
Financial guarantees issued are initially measured at fair value. Subsequently, they are measured at
higher of :
• the amount of the loss allowance; and

• the amount initially recognised less, when appropriate, the cumulative amount of income
recognised in accordance to the principles of MFRS 15, Revenue from Contracts with Customers.
Liabilities arising from financial guarantees are presented together with other provisions.
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2.2 Financial instruments (cont’d)
(v) Derecognition
A financial asset or part of it is derecognised when, and only when, the contractual rights to the cash
flows from the financial asset expire or transferred, or control of the asset is not retained or substantially
all of the risks and rewards of ownership of the financial asset are transferred to another party. On
derecognition of a financial asset, the difference between the carrying amount of the financial asset and
the sum of consideration received (including any new asset obtained less any new liability assumed) is
recognised in profit or loss.
A financial liability or a part of it is derecognised when, and only when, the obligation specified in the
contract is discharged, cancelled or expires. A financial liability is also derecognised when its terms
are modified and the cash flows of the modified liability are substantially different, in which case, a new
financial liability based on modified terms is recognised at fair value. On derecognition of a financial
liability, the difference between the carrying amount of the financial liability extinguished or transferred
to another party and the consideration paid, including any non-cash assets transferred or liabilities
assumed, is recognised in profit or loss.
(vi) Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of
financial position when, and only when, the Group or the Company currently has a legally enforceable
right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and
liability simultaneously.
2.3 Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less any accumulated depreciation and
any accumulated impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset and any other
costs directly attributable to bringing the asset to working condition for its intended use, and the costs
of dismantling and removing the items and restoring the site on which they are located. The cost of self-
constructed assets also includes the cost of materials and direct labour.
Purchased software that is integral to the functionality of the related equipment is capitalised as part of
that equipment.
When significant parts of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items (major components) of property, plant and equipment.
The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment and is recognised
net within “other operating income” or “other operating expenses” respectively in profit or loss.
(ii) Subsequent costs
The cost of replacing a component of an item of property, plant and equipment is recognised in the
carrying amount of the item if it is probable that the future economic benefits embodied within the
component will flow to the Group or the Company, and its cost can be measured reliably. The carrying
amount of the replaced component is derecognised to profit or loss. The costs of the day-to-day
servicing of property, plant and equipment are recognised in profit or loss as incurred.
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2.3 Property, plant and equipment (cont’d)
(iii) Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant components of individual
assets are assessed, and if a component has a useful life that is different from the remainder of that
asset, then that component is depreciated separately.
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of
each component of an item of property, plant and equipment from the date that they are available for
use.
Freehold land is not depreciated. Capital work-in-progress is not depreciated until the assets are ready
for their intended use.
The estimated useful lives for the current and comparative periods are as follows:
Long term leasehold land 99 years

Factory buildings 50 years
Plant and machinery 5 years
Factory equipment 5 years
Motor vehicles 5 years
Electrical installation 10 years
Office equipment 5 - 10 years
Furniture and fittings 20 years
Depreciation methods, useful lives and residual values are reviewed at the end of the reporting period,
and adjusted as appropriate.
2.4 Leases
The Group has applied MFRS 16 using the modified retrospective approach, under which the cumulative
effect of initial application is recognised as an adjustment to retained earnings at 1 April 2019. Accordingly,
the comparative information presented for 2019 has not been restated – i.e. it is presented, as previously
reported under MFRS 117, Leases and related interpretations.
Current financial year
(i) Definition of a lease
A contract is, or contains, a lease if the contract conveys a right to control the use of an identified asset
for a period of time in exchange for consideration. To assess whether a contract conveys the right to
control the use of an identified asset, the Group assesses whether:
• the contract involves the use of an identified asset – this may be specified explicitly or implicitly,
and should be physically distinct or represent substantially all of the capacity of a physically
distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;
• the customer has the right to obtain substantially all of the economic benefits from use of the asset
throughout the period of use; and
• the customer has the right to direct the use of the asset. The customer has this right when it has
the decision-making rights that are most relevant to changing how and for what purpose the asset
is used. In rare cases where the decision about how and for what purpose the asset is used is
predetermined, the customer has the right to direct the use of the asset if either the customer has
the right to operate the asset; or the customer designed the asset in a way that predetermines how
and for what purpose it will be used.
At inception or on reassessment of a contract that contains a lease component, the Group allocates
the consideration in the contract to each lease and non-lease component on the basis of their relative
stand-alone prices. However, for leases of properties in which the Group is a lessee, it has elected not
to separate non-lease components and will instead account for the lease and non-lease components
as a single lease component.
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2.4 Leases (cont’d)
Current financial year (cont’d)
(ii) Recognition and initial measurement
(a) As a lessee
The Group recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the
lease liability adjusted for any lease payments made at or before the commencement date, plus
any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying
asset or to restore the underlying asset or the site on which it is located, less any lease incentives
received.
The lease liability is initially measured at the present value of the lease payments that are not
paid at the commencement date, discounted using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the respective Group entities’ incremental borrowing rate.
Generally, the Group entities uses their incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following:
• fixed payments, including in-substance fixed payments less any incentives receivable;
• variable lease payments that depend on an index or a rate, initially measured using the index
or rate as at the commencement date;
• amounts expected to be payable under a residual value guarantee;
• the exercise price under a purchase option that the Group is reasonably certain to exercise;
and
• penalties for early termination of a lease unless the Group is reasonably certain not to
terminate early.
The Group excludes variable lease payments that linked to future performance or usage of the
underlying asset from the lease liability. Instead, these payments are recognised in profit or loss
in the period in which the performance or use occurs.
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term
leases that have a lease term of 12 months or less and leases of low-value assets. The Group
recognises the lease payments associated with these leases as an expense on a straight-line
basis over the lease term.
(b) As a lessor
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance
lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers
substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is
the case, then the lease is a finance lease; if not, then it is an operating lease.
If an arrangement contains lease and non-lease components, the Group applies MFRS 15 to
allocate the consideration in the contract based on the stand-alone selling prices.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the
sublease separately. It assesses the lease classification of a sublease with reference to the right-
of-use asset arising from the head lease, not with reference to the underlying asset. If a head
lease is a short-term lease to which the Group applies the exemption described above, then it
classifies the sublease as an operating lease.
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Current financial year (cont’d)
(iii) Subsequent measurement
(a) As a lessee
The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of
the lease term. The estimated useful lives of right-of-use assets are determined on the same basis
as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced
by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is measured at amortised cost using the effective interest method. It is
remeasured when there is a change in future lease payments arising from a change in an index
or rate, if there is a revision of in-substance fixed lease payments, or if there is a change in the
Group’s estimate of the amount expected to be payable under a residual value guarantee, or if
the Group changes its assessment of whether it will exercise a purchase, extension or termination
option.
When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount
of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use
asset has been reduced to zero.
(b) As a lessor
The Group recognises lease payments received under operating leases as income on a straight-
line basis over the lease term as part of “other operating income”.
Previous financial year
As a lessee
(i) Finance lease
Leases in terms of which the Group or the Company assumed substantially all the risks and rewards
of ownership are classified as finance leases. Upon initial recognition, the leased asset was measured
at an amount equal to the lower of its fair value and the present value of the minimum lease payments.
Subsequent to initial recognition, the asset was accounted for in accordance with the accounting policy
applicable to that asset.
Minimum lease payments made under finance leases were apportioned between the finance expense
and the reduction of the outstanding liability. The finance expense was allocated to each period during
the lease term so as to produce a constant periodic rate of interest on the remaining balance of the
liability. Contingent lease payments were accounted for by revising the minimum lease payments over
the remaining term of the lease when the lease adjustment was confirmed.
Leasehold land which in substance was a finance lease was classified as property, plant and equipment,
or as investment property if held to earn rental income or for capital appreciation or for both.
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Previous financial year (cont’d)
As a lessee (cont’d)
(ii) Operating lease
Leases, where the Group or the Company did not assume substantially all the risks and rewards of
ownership were classified as operating leases and, the leased assets were not recognised on the
statement of financial position.
Payments made under operating leases were recognised in profit or loss on a straight-line basis over
the term of the lease. Lease incentives received were recognised in profit or loss as an integral part of
the total lease expense, over the term of the lease. Contingent rentals were charged to profit or loss in
the reporting period in which they were incurred.
Leasehold land which in substance was an operating lease was classified as prepaid lease payments.
2.5 Investment property
Investment property carried at cost
Investment properties are properties which are owned or right-of-use asset held under a lease contract to
earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business,
use in the production or supply of goods or services or for administrative purposes. These include freehold
land and leasehold land which in substance is a finance lease held for a currently undetermined future use.
Properties that are occupied by the companies in the Group are accounted for as owner-occupied rather than
as investment properties. Investment properties initially and subsequently measured at cost are accounted
for similar to property, plant and equipment.
Investment properties are stated at cost less any accumulated depreciation and any accumulated impairment
losses, consistent with the accounting policy for property, plant and equipment as stated in accounting policy
Note 2.3.
Cost includes expenditure that is attributable to the acquisition of the investment property. The cost of self-
constructed investment property includes the costs of materials and direct labour, any other costs directly
attributable to bringing the investment property to a working condition for their intended use and capitalised
borrowing costs. Right-of-use asset held under a lease contract that meets the definition of investment
property is initially measured similar as other right-of-use assets.
Transfers between investment property, property, plant and equipment and inventories do not change the
carrying amount and the cost of the property transferred.
Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of 50 years for
buildings. Leasehold land is depreciated over the lease term and freehold land is not depreciated.
An investment property is derecognised on its disposal, or when it is permanently withdrawn from use and no
future economic benefits are expected from its disposal. The difference between the net disposal proceeds
and the carrying amount is recognised in profit or loss in the period in which the item is derecognised.
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2.6 Inventories
Inventories are measured at the lower of cost and net realisable value.
The cost of inventories is calculated using the weighted average method, and includes expenditure incurred
in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to
their existing location and condition. In the case of finished goods, cost includes an appropriate share of
production overheads based on normal operating capacity.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs
of completion and the estimated costs necessary to make the sale.
2.7 Contract liability
A contract liability is stated at cost and represents the obligation of the Group or the Company to transfer
goods or services to a customer for which consideration has been received from the customers.
2.8 Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly liquid
investments which have an insignificant risk of changes in fair value with original maturities of three months
or less, and are used by the Group and the Company in the management of their short term commitments.
For the purpose of the statement of cash flows, cash and cash equivalents are presented net of bank
overdrafts and pledged deposits, if any.
2.9 Impairment
(i) Financial assets
The Group and the Company recognise loss allowances for expected credit losses on financial assets
measured at amortised cost. Expected credit losses are a probability-weighted estimate of credit losses.
The Group and the Company measure loss allowances at an amount equal to lifetime expected credit
loss, except for cash and bank balance and other debt securities for which credit risk has not increased
significantly since initial recognition, which are measured at 12-month expected credit loss. Loss
allowances for trade receivables are always measured at an amount equal to lifetime expected credit
loss.
When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating expected credit loss, the Group and the Company consider reasonable
and supportable information that is relevant and available without undue cost or effort. This includes
both quantitative and qualitative information and analysis, based on the Group’s historical experience
and informed credit assessment and including forward-looking information, where available.
Lifetime expected credit losses are the expected credit losses that result from all possible default
events over the expected life of the asset, while 12-month expected credit losses are the portion of
expected credit losses that result from default events that are possible within the 12 months after
the reporting date. The maximum period considered when estimating expected credit losses is the
maximum contractual period over which the Group and the Company are exposed to credit risk.
The Group and the Company estimate the expected credit losses on trade receivables using a provision
matrix with reference to historical credit loss experience.
An impairment loss in respect of financial assets measured at amortised cost is recognised in profit or
loss and the carrying amount of the asset is reduced through the use of an allowance account.
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2.9 Impairment (cont’d)
(i) Financial assets (cont’d)
At each reporting date, the Group and the Company assess whether financial assets carried at
amortised cost are credit-impaired. A financial asset is credit impaired when one or more events that
have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
The gross carrying amount of a financial asset is written off (either partially or full) to the extent that
there is no realistic prospect of recovery. This is generally the case when the Group or the Company
determines that the debtor does not have assets or sources of income that could generate sufficient
cash flows to repay the amounts subject to the write-off. However, financial assets that are written off
could still be subject to enforcement activities in order to comply with the Group’s or the Company’s
procedures for recovery of amounts due.
(ii) Other assets
The carrying amounts of other assets (except for inventories and deferred tax asset) are reviewed at
the end of each reporting period to determine whether there is any indication of impairment. If any such
indication exists, then the asset’s recoverable amount is estimated.
For the purpose of impairment testing, assets are grouped together into the smallest group of assets
that generates cash inflows from continuing use that are largely independent of the cash inflows of
other assets or cash-generating units.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair
value less costs of disposal. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset or cash-generating unit.
An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit
exceeds its estimated recoverable amount.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of cash-
generating units are allocated to reduce the carrying amounts of the assets in the cash-generating unit
(groups of cash-generating units) on a pro rata basis.
Impairment losses recognised in prior periods are assessed at the end of each reporting period for any
indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has
been a change in the estimates used to determine the recoverable amount since the last impairment
loss was recognised. An impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited
to profit or loss in the financial year in which the reversals are recognised.
2.10 Equity instruments
Instruments classified as equity are measured at cost on initial recognition and are not remeasured
subsequently.
(i) Issue expenses
Costs directly attributable to the issue of instruments classified as equity are recognised as a deduction
from equity.
(ii) Ordinary shares
Ordinary shares are classified as equity.
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2.11 Employee benefits
(i) Short-term employee benefits
Short-term employee benefit obligations in respect of salaries and wages, annual bonuses, paid annual leave
and sick leave are measured on an undiscounted basis and are expensed as the related service is provided.
A liability is recognised for the amount expected to be paid under short-term cash bonus if the Group
has a present legal or constructive obligation to pay this amount as a result of past service provided by
the employee and the obligation can be estimated reliably.
(ii) State plans
The Group’s contributions to statutory pension funds are charged to profit or loss in the financial year
to which they relate. Prepaid contributions are recognised as an asset to the extent that a cash refund
or a reduction in future payments is available.
(iii) Share-based payment transactions
The grant date fair value of share-based payment granted to employees is recognised as an employee
expense, with a corresponding increase in equity, over the period that the employees unconditionally
become entitled to the awards. The amount recognised as an expense is adjusted to reflect the number
of awards for which the related service and non-market vesting conditions are expected to be met, such
that the amount ultimately recognised as an expense is based on the number of awards that meet the
related service and non-market performance conditions at the vesting date.
For share-based payment awards with non-vesting conditions, the grant date fair value of the share-
based payment is measured to reflect such conditions and there is no true-up for differences between
expected and actual outcomes.
The fair value of employee share options is measured using a trinomial model. Measurement inputs
include share price on measurement date, exercise price of the instrument, expected volatility (based on
weighted average historic volatility adjusted for changes expected due to publicly available information),
weighted average expected life of the instruments (based on historical experience and general option
holder behaviour), expected dividends, and the risk-free interest rate (based on government bonds).
Service and non-market performance conditions attached to the transactions are not taken into account
in determining fair value.
When the options are exercised, the share option reserve is transferred to share capital if new shares are
issued.
The share option reserve is transferred to retained profits upon forfeiture or expiry of the share options.
2.12 Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Provisions are determined by discounting the expected future cash flows at
a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to
the liability. The unwinding of the discount is recognised as finance cost.
2.13 Revenue and other income
(i) Revenue
Revenue is measured based on the consideration specified in a contract with a customer in exchange
for transferring goods or services to a customer, excluding amounts collected on behalf of third parties.
The Group or the Company recognises revenue when (or as) it transfers control over a product or
service to customer. An asset is transferred when (or as) the customer obtains control of the asset.
The Group or the Company transfers control of a good or service at a point in time unless one of the
following over time criteria is met:
(a) the customer simultaneously receives and consumes the benefits provided as the Group or the
Company performs;
(b) the Group’s or the Company’s performance creates or enhances an asset that the customer
controls as the asset is created or enhanced; or
(c) the Group’s or the Company’s performance does not create an asset with an alternative use and
the Group or the Company has an enforceable right to payment for performance completed to date.
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2.13 Revenue and other income (cont’d)
(ii) Dividend income
Dividend income is recognised in profit or loss on the date that the Group’s or the Company’s right to
receive payment is established, which in the case of quoted securities is the ex-dividend date.
(iii) Management fee
Management fee is recognised in profit or loss for services rendered, including professional and
management advice, marketing, management information system and accounting services and
administrative matters to the subsidiaries.
(iv) Rental income
Rental income from investment property is recognised in profit or loss on a straight-line basis over the
term of the lease.
(v) Interest income
Interest income is recognised as it accrues using the effective interest method in profit or loss except
for interest income arising from temporary investment of borrowings taken specifically for the purpose
of obtaining a qualifying asset which is accounted for in accordance with the accounting policy on
borrowing costs.
2.14 Income tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit
or loss except to the extent that it relates to a business combination or items recognised directly in equity or
other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax
rates enacted or substantively enacted by the end of the reporting period, and any adjustment to tax payable
in respect of previous financial years.
Deferred tax is recognised using the liability method, providing for temporary differences between the carrying
amounts of assets and liabilities in the statement of financial position and their tax bases. Deferred tax is not
recognised for the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss. Deferred tax is measured at the tax rates that
are expected to be applied to the temporary differences when they reverse, based on the laws that have been
enacted or substantively enacted by the end of the reporting period.
The amount of deferred tax recognised is measured based on the expected manner of realisation or settlement
of the carrying amount of the assets and liabilities, using tax rates enacted or substantively enacted at the
reporting date. Deferred tax assets and liabilities are not discounted.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or
on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax
assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilised. Deferred tax assets are reviewed at the end of each
reporting period and are reduced to the extent that it is no longer probable that the related tax benefit will be
realised.
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2.15 Foreign currency transactions
Transactions in foreign currencies are translated to the functional currency of the Group entities at exchange
rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are
retranslated to the functional currency at the exchange rate at that date.
Non-monetary assets and liabilities denominated in foreign currencies are not retranslated at the end of the
reporting date, except for those that are measured at fair value are retranslated to the functional currency at
the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognised in profit or loss.
2.16 Earnings per ordinary share
The Group presents basic and diluted earnings per share (“EPS”) data for its ordinary shares.
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company
by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares
held.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the
weighted average number of ordinary shares outstanding adjusted for the effects of all dilutive potential
ordinary shares, which comprise share options granted to employees.
2.17 Operating segments
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any
of the Group’s other components. Operating segment results are reviewed regularly by the chief operating
decision maker, which in this case is the Managing Director of the Group, to make decisions about resources
to be allocated to the segment and to assess its performance, and for which discrete financial information is
available.
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2.18 Contingent liabilities
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be
estimated reliably, the obligation is not recognised in the statements of financial position and is disclosed as
a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations,
whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events,
are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.
2.19 Fair value measurements
Fair value of an asset or a liability, except for share-based payment and lease transactions, is determined
as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The measurement assumes that the transaction to
sell the asset or transfer the liability takes place either in the principal market or in the absence of a principal
market, in the most advantageous market.
For non-financial asset, the fair value measurement takes into account a market participant’s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another market
participant that would use the asset in its highest and best use.
When measuring the fair value of an asset or a liability, the Group uses observable market data as far as
possible. Fair value is categorised into different levels in a fair value hierarchy based on the input used in the
valuation technique as follows :
Level 1 : quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can
access at the measurement date.
Level 2 : inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
Level 3 : unobservable inputs for the asset or liability.
The Group recognises transfers between levels of the fair value hierarchy as of the date of the event or
change in circumstances that caused the transfers.
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3. PROPERTY, PLANT AND EQUIPMENT
Plant and Furniture,

machinery, fittings,
factory motor
Land and equipment vehicles and Capital
buildings and office electrical work-in-
(Note 3.1) equipment installation progress Total
RM RM RM RM RM
Group

At cost

At 1 April 2018 52,086,123 76,588,679 9,667,350 2,496,028 140,838,180

Additions 10,097,115 807,032 876,160 3,107,371 14,887,678
Reclassification 1,008,440 2,253,789 70,571 (3,332,800) -
Disposals - (161,650) (420,384) - (582,034)
Write-off - (329,862) (104,500) - (434,362)
Transfer to investment property
(Note 5) - - - (1,200,000) (1,200,000)

At 31 March 2019,
as previously reported 63,191,678 79,157,988 10,089,197 1,070,599 153,509,462

Adjustment on initial application
of MFRS 16 (1,100,000) - - - (1,100,000)

At 1 April 2019, as restated 62,091,678 79,157,988 10,089,197 1,070,599 152,409,462

Additions 8,020 1,504,010 282,405 1,356,804 3,151,239
Reclassification 402,617 416,913 9,232 (828,762) -
Disposals - (1,216,165) - - (1,216,165)
Write-off - (75,073) (1) - (75,074)

At 31 March 2020 62,502,315 79,787,673 10,380,833 1,598,641 154,269,462
Accumulated depreciation

At 1 April 2018 2,312,476 68,745,459 7,667,055 - 78,724,990

Depreciation for the year 365,527 2,880,890 762,204 - 4,008,621
Disposals - (161,496) (414,382) - (575,878)
Write-off - (329,553) (104,499) - (434,052)

At 31 March 2019,
as previously reported 2,678,003 71,135,300 7,910,378 - 81,723,681

Adjustment on initial
application of MFRS 16 (89,545) - - - (89,545)

At 1 April 2019, as restated 2,588,458 71,135,300 7,910,378 - 81,634,136

Depreciation for the year 375,239 2,822,995 818,876 - 4,017,110
Disposals - (1,216,160) - - (1,216,160)
Write-off - (72,531) - - (72,531)

At 31 March 2020 2,963,697 72,669,604 8,729,254 - 84,362,555
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3. PROPERTY, PLANT AND EQUIPMENT (cont’d)
Plant and Furniture,

machinery, fittings,
factory motor
Land and equipment vehicles and Capital
buildings and office electrical work-in-
(Note 3.1) equipment installation progress Total
RM RM RM RM RM
Group

Carrying amounts

At 1 April 2018 49,773,647 7,843,220 2,000,295 2,496,028 62,113,190
At 31 March 2019 60,513,675 8,022,688 2,178,819 1,070,599 71,785,781
At 31 March 2020 59,538,618 7,118,069 1,651,579 1,598,641 69,906,907
3.1 Land and buildings
Long term Freehold Factory

leasehold land land buildings Total
RM RM RM RM
Group

At cost

At 1 April 2018 1,100,000 36,015,321 14,970,802 52,086,123

Additions - 10,086,555 10,560 10,097,115
Reclassification - - 1,008,440 1,008,440

At 31 March 2019,
as previously reported 1,100,000 46,101,876 15,989,802 63,191,678

of MFRS 16 (1,100,000) - - (1,100,000)

At 1 April 2019, as restated - 46,101,876 15,989,802 62,091,678
Additions - - 8,020 8,020

Reclassification - - 402,617 402,617

At 31 March 2020 - 46,101,876 16,400,439 62,502,315

At 1 April 2018 76,540 - 2,235,936 2,312,476

Depreciation for the year 13,005 - 352,522 365,527

At 31 March 2019,
as previously reported 89,545 - 2,588,458 2,678,003

of MFRS 16 (89,545) - - (89,545)

At 1 April 2019,
as restated - - 2,588,458 2,588,458

Depreciation for the year - - 375,239 375,239

At 31 March 2020 - - 2,963,697 2,963,697
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3. PROPERTY, PLANT AND EQUIPMENT (cont’d)
3.1 Land and buildings (cont’d)
Long term Freehold Factory

leasehold land land buildings Total
RM RM RM RM
Group

Carrying amounts

At 1 April 2018 1,023,460 36,015,321 12,734,866 49,773,647
At 31 March 2019 1,010,455 46,101,876 13,401,344 60,513,675
At 31 March 2020 - 46,101,876 13,436,742 59,538,618
Leasehold land of the Group was with unexpired lease period of more than 50 years.
Freehold Office
land equipment Total
RM RM RM
Company
At cost

At 1 April 2018/31 March 2019/
1 April 2019/31 March 2020 1,592,000 387,224 1,979,224


1 April 2019/31 March 2020 - 387,213 387,213

Carrying amounts

1 April 2019/31 March 2020 1,592,000 11 1,592,011

The title deeds for certain freehold land of the Group and the Company are still in the process of being
transferred to the Company’s and the subsidiary’s name. The carrying amounts of these land of the Group
and of the Company are RM1,830,000 (2019: RM6,286,000) and RM1,592,000 (2019: RM1,592,000)
respectively.
4. RIGHT-OF-USE ASSETS - GROUP
Long term
leasehold Freehold Office
land land building Total
RM RM RM RM
At 1 April 2019 1,010,455 45,000 126,000 1,181,455

Depreciation (13,004) (36,000) (84,000) (133,004)
At 31 March 2020 997,451 9,000 42,000 1,048,451
The Group leases an office building and land that run between 3 years and 99 years.
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5. INVESTMENT PROPERTY
Group Company
RM RM
At cost

At 1 April 2018 340,000 7,635,000

Additions 1,307,951 -
Transfer from property, plant and equipment (Note 3) 1,200,000 -

At 31 March 2019/1 April 2019/31 March 2020 2,847,951 7,635,000


At 1 April 2018 102,850 -

Depreciation for the year 31,940 -

At 31 March 2019/1 April 2019 134,790 -

Depreciation for the year 55,559 -

At 31 March 2020 190,349 -

Carrying amounts

At 1 April 2018 237,150 7,635,000

At 31 March 2019/1 April 2019 2,713,161 7,635,000

At 31 March 2020 2,657,602 7,635,000

Group Company
2020 2019 2020 2019
RM RM RM RM
Included in the above are:

Buildings 2,657,602 2,713,161 - -

Freehold land - - 7,635,000 7,635,000

The title deeds for certain freehold land held as investment properties of the Company for RM4,450,000 were still
being processed by the relevant authorities as at the end of the previous financial year.
The fair value of the investment property as at 31 March 2020 is classified as level 3 of the fair value hierarchy.
Based on the Directors’ estimation using the latest available market information and recent experience and
knowledge in the location and category of property being valued, the fair values of the investment properties of the
Group and of the Company are RM3,472,000 (2019 : RM3,088,000) and RM21,484,000 (2019 : RM20,398,000)
respectively.
Estimation uncertainty and key assumptions
The Directors estimate the fair value of the Group’s investment property by comparing the Group’s investment
property with similar properties that were listed for sale within the same locality or other comparable localities.
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5. INVESTMENT PROPERTY (cont’d)
The following are recognised in profit or loss in respect of investment property:
Group Company
2020 2019 2020 2019
RM RM RM RM
Lease income - - 540,000 540,000

Direct operating expenses:
- income generating investment property - - 35,585 35,585
- non-income generating investment property 16,149 12,271 - -
The operating lease payments to be received are as follows:
Company
2020
RM
Less than one year 510,000

One to two years 420,000
Two to three years 300,000
Three to four years 35,000
Total undiscounted lease payments 1,265,000
2019
RM
Less than one year 540,000

Between one and five years 1,265,000
Total undiscounted lease payments 1,805,000
6. INTERESTS IN SUBSIDIARIES
Note 2020 2019

RM RM
Company

At cost :

Unquoted shares 28,171,985 28,171,985
Amount due from subsidiaries 6.1 47,571,747 48,177,564
Share-based payments allocated to subsidiaries 1,500,257 1,500,257

77,243,989 77,849,806
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6. INTERESTS IN SUBSIDIARIES (cont’d)
Details of the subsidiaries are as follows:

Effective ownership
interest and
Name of subsidiary Country of voting interest Principal activities
incorporation 2020 2019
Direct subsidiary
OKA Concrete Industries Sdn. Bhd. Malaysia 100% 100% Manufacture and sale of pre-cast concrete
products
Held by OKA Concrete Industries
Sdn. Bhd.
OKA Readymixed Concrete Malaysia 100% 100% Trading of readymixed concrete

Sdn. Bhd.
Manufacture of hard drawn wires, fabrication of
OKA Engineering and Trading Malaysia 100% 100% mould and trading of pre-stressed concrete piles
Sdn. Bhd.
Provision of transportation and other related
Real Charisma Sdn. Bhd. * Malaysia 100% 100% services
Pembinaan Cahaya Emas Sdn. Bhd. * Malaysia 100% 100% Supplier of manual labour to perform contracted
jobs and other related services
OKA Steel Sdn. Bhd. * Malaysia 100% 100% Manufacture of steel products, hard drawn wire,
straight bars, wire mesh
* Not audited by KPMG PLT.
6.1 Amount due from subsidiaries
The amount due from subsidiaries is regarded as net interests in subsidiaries. This amount is unsecured,
interest-free and with no fixed terms of repayment.
7. OTHER INVESTMENTS
Group
2020 2019
RM RM
Non-current quoted shares

Fair value through other comprehensive income 11,920 11,920
Equity investments designated at fair value through other comprehensive income
The Group designated the investments shown above as equity securities as at fair value through other
comprehensive income because these equity securities represent investments that the Group intends to hold for
long-term strategic purposes.
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8. DEFERRED TAX ASSETS
Recognised deferred tax assets
Deferred tax assets are attributable to the following:
Assets Liabilities Net

2020 2019 2020 2019 2020 2019
RM RM RM RM RM RM
Group

Property, plant and equipment - - (1,787,417) (2,129,200) (1,787,417) (2,129,200)
Provisions 3,278,200 3,842,118 - - 3,278,200 3,842,118
Tax assets/(liabilities) 3,278,200 3,842,118 (1,787,417) (2,129,200) 1,490,783 1,712,918

Set-off of tax (1,787,417) (2,129,200) 1,787,417 2,129,200 - -
Net tax assets 1,490,783 1,712,918 - - 1,490,783 1,712,918
Unrecognised deferred tax assets/(liabilities)
Deferred tax assets have not been recognised in respect of the following items (stated at gross):

2020 2019
RM RM
Group

Capital allowances carry-forwards 693,000 713,000
Tax losses carry-forwards 4,860,000 4,612,000

5,553,000 5,325,000
The capital allowances carry-forwards of the Company are available indefinitely for offsetting against future taxable
profits, subject to no substantial changes in shareholdings of the Company under the Income Tax Act, 1967.
Effective from year of assessment 2018 as stipulated in the Finance Act 2018, the tax losses carry-forwards as
at 31 March 2018 and any further losses incurred thereafter will only be available for carry-forward for a period of
seven (7) consecutive years. Any amount not utilised upon the expiry of the 7 years’ period will be disregarded.
Deferred tax assets have not been recognised in respect of these items because it is not probable that future
taxable profit will be available against which the Group can utilise the benefits therefrom.
Movements in temporary differences during the financial year
Recognised Recognised
Recognised in profit At in profit
At in retained or loss 31.3.2019/ or loss At
1.4.2018 earnings (Note 19) 1.4.2019 (Note 19) 31.3.2020
RM RM RM RM RM RM
Group

Property, plant and equipment (2,133,976) - 4,976 (2,129,000) 341,583 (1,787,417)
Provisions 1,589,200 2,583,509 (330,791) 3,841,918 (563,718) 3,278,200
(544,776) 2,583,509 (325,815) 1,712,918 (222,135) 1,490,783
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9. INVENTORIES - GROUP

2020 2019
RM RM
Raw materials 10,344,510 9,583,097

Finished goods 30,861,554 31,526,266

41,206,064 41,109,363

Recognised in profit or loss :
Inventories recognised as cost of sales 83,409,952 91,562,867
Write-down to net realisable value 86,503 -
Reversal of write-down - (621,230)
The write-down and reversal are included in cost of sales.
The write-down of finished goods was made based on the analysis of the aging of finished goods as well as the
analysis of the potential obsolescence due to low demand by customers following the completion of projects and
for inventories with odd sizes or in loose quantities. In prior year, an amount of RM621,230 was reversed following
the sale of inventories for which the write-down was made previously.
10. RECEIVABLES, DEPOSITS AND PREPAYMENTS
Note 2020 2019

RM RM
Group

Current

Trade

Trade receivables a 26,446,968 30,088,413

Non-trade

Other receivables b 130,322 90,103
Deposits c 647,979 398,404
Prepayments 5,534 172,457
783,835 660,964
Total 27,230,803 30,749,377

Company

Non-trade

Deposits 1,000 1,000
1,000 1,000
Dividend receivable 9,800,000 9,000,000

9,800,000 9,000,000
Total 9,801,000 9,001,000
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10. RECEIVABLES, DEPOSITS AND PREPAYMENTS (cont’d)
Note a
The Group recognises loss allowances for expected credit losses on trade receivables, if necessary, based on
probability-weighted estimate of credit losses, taking into consideration historical past due aging for the past three
years.
Note b
Other receivables of the Group and the Company are shown net of impairment loss of RM357,958 (2019:
RM381,624).
Note c
Included in deposits of the Group is an amount of RM249,000 (2019 : RM Nil) representing deposits paid for the
acquisition of land.
11. CASH AND CASH EQUIVALENTS

2020 2019
RM RM
Group

Short-term funds placed with financial institutions 49,871,066 43,997,420
Fixed deposits placed with a licensed bank 18,750 18,750
Cash and bank balances 2,175,065 5,528,303

52,064,881 49,544,473

Company

Cash and bank balances 30,878 13,099
The fixed deposits of the Group amounting to RM18,750 (2019: RM18,750) placed with a licensed bank is pledged
for bank facilities granted to one of the subsidiaries of the Company.
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12. SHARE CAPITAL
Group/Company
2020 2019
Amount Number Amount Number
RM of shares RM of shares
Share capital

Issued and fully paid shares classified
as equity instruments:

Ordinary shares At 1 April 2019/2018 87,836,442 245,395,350 87,807,842 163,576,900

to ESOS (Note 12.1) - - 22,600 20,000
Issue of bonus share (Note 12.2) - - - 81,798,450
Transfer to share capital for share options
exercised - - 6,000 -
- - 28,600 81,818,450

At 31 March 2020/2019 87,836,442 245,395,350 87,836,442 245,395,350
12.1 During the previous financial year, the Company issued 20,000 ordinary shares for cash arising from the
exercise of ESOS at an exercise price of RM1.13 per ordinary share.
12.2 At the Extraordinary General Meeting held on 27 August 2018, the shareholders approved the Bonus Issue
of 81,798,450 ordinary shares credited as fully paid on the basis of one new ordinary share for every two
existing ordinary shares. These were allocated to the shareholders on 12 December 2018. As a result, the
issued share capital of the Company was increased from 163,596,900 to 245,395,350 ordinary shares.
13. RESERVES
Group Company
2020 2019 2020 2019
RM RM RM RM
Retained profits 88,103,521 84,533,280 3,092,246 1,569,276

Share option reserve - 1,840,511 - 1,840,511
Fair value reserve 3,380 3,380 - -

88,106,901 86,377,171 3,092,246 3,409,787
Fair value reserve
The fair value reserve relates to the cumulative net change in the fair value of financial assets categorised as
available-for-sale.
Share option reserve
The share option reserve comprised the cumulative value of employee services received for the issue of share
options, net of the amount reclassified to share capital and retained profits for options exercised and expired. The
details of share options are disclosed in Note 22.
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14. PAYABLES AND ACCRUALS
Group Company
2020 2019 2020 2019
RM RM RM RM
Current

Trade

Trade payables 17,132,921 16,859,905 - -

Non-trade

Other payables 996,712 1,286,997 45,000 45,000
Accrued expenses 1,715,292 1,692,167 434,101 397,651
Dividend payable 4,907,907 4,417,116 4,907,907 4,417,116

7,619,911 7,396,280 5,387,008 4,859,767

Total 24,752,832 24,256,185 5,387,008 4,859,767
15. CONTRACT LIABILITIES - GROUP
The contract liabilities primarily relate to the advance consideration received from customers for which revenue is
recognised at a point in time. The contract liabilities are expected to be recognised as revenue when the control
of the goods is transferred to the customer.
Significant changes to contract liabilities balances during the period are as follows:
2020 2019
RM RM
Group

Contract liabilities at the beginning of the period recognised as revenue 1,693,628 1,373,829
Advances received during the year 1,004,642 1,693,628
16. REVENUE
2020 2019
RM RM
Group

Revenue from contracts with customers 119,052,313 129,175,435
Company

Dividend income 9,800,000 9,000,000
The Group’s revenue from contracts with customers is primarily confined to the domestic market. The Group is
recognising its revenue based on a point in time for its revenue from the manufacture and trading of concrete
products.
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16. REVENUE (cont’d)
16.1 Nature of goods and services
The following information reflects the typical transactions of the Group:
Timing of
Nature recognition or Significant Variable Obligation
of goods method used to payment element for returns
or services recognised revenue terms in consideration or refunds Warranty
Manufacture Revenue is Credit period Not applicable. Not applicable. Not applicable.
and trading of recognised when of 60 to 120
concrete the goods are days from
products delivered and invoice date.
accepted by the
customers at their
premises.
17. PROFIT BEFORE TAX
Note Group Company

2020 2019 2020 2019
RM RM RM RM
Profit before tax is arrived

at after charging/(crediting) :

Auditors’ remunerations
- Statutory audit fees
- KPMG PLT 110,000 110,000 28,000 28,000
- Other auditors
- Current year 8,800 8,800 - -
- Prior year - 1,100 - -
- Non-audit fees
- KPMG PLT 15,000 15,000 15,000 15,000
- Other auditors 35,000 35,000 35,000 35,000

Material expenses/(income)
Plant and equipment written off 2,543 310 - -
Personnel expenses (including Directors):
- Contributions to Employees’ Provident Fund 1,419,219 1,400,829 312,297 314,153
- Wages, salaries and others 26,428,292 25,093,422 2,680,599 2,696,006
Net foreign exchange loss 13,927 93,510 - -
Gross dividend income :-
- Subsidiary (unquoted) - - (9,800,000) (9,000,000)
- Other investments (370) (431) - -
Gain on disposals of :-
- Property, plant and equipment (79,307) (48,132) - -
- Asset held for sale - (31,859) - -
Interest income (1,523,817) (1,714,866) - -
Management fees receivable from subsidiaries - - (2,400,000) (2,400,000)
Overdue interest income (50,862) (15,616) - -
Rental income (12,000) (12,000) (540,000) (540,000)

Expenses/(Income) arising from leases
Expenses relating to short-term leases a 1,812,519 - - -
Rental expenses - 1,925,530 - -
Rental income (12,000) (12,000) (540,000) (540,000)

Net loss on impairment
of financial instrument
Financial assets at amortised cost 943,032 2,510,724 60,000 144,000

Note a
The Group leases factory equipment with contract terms of 1 year or shorter. These leases are short-term and/or
leases of low-value items. The Group has elected not to recognise as right-of-use assets and lease liabilities for
these leases.
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31 March 2020
18. KEY MANAGEMENT PERSONNEL COMPENSATION
The compensation for key management personnel which comprise only Directors of the Company are as follows:
Group/Company
2020 2019
RM RM
Fees 166,000 166,000

Remuneration 2,109,400 2,109,400
Other short-term employees benefits 394,533 392,424

Total short-term employee benefits 2,669,933 2,667,824
The estimated monetary value of Directors’ benefits-in-kind of the Group and the Company is RM73,817 (2019:
RM69,442).
19. INCOME TAX EXPENSE
(i) Recognised in profit or loss
Group Company
2020 2019 2020 2019
RM RM RM RM
Current tax expense

Malaysian income tax
- current year 2,867,600 3,019,730 - -
- under/(over) provision in previous year 96,251 (217,837) - -

Total current tax recognised
in profit or loss 2,963,851 2,801,893 - -

Deferred tax expense

- current year 464,386 387,200 - -
- over provision in previous year (242,251) (61,385) - -
222,135 325,815 - -
Total income tax expense 3,185,986 3,127,708 - -
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19. INCOME TAX EXPENSE (cont’d)
(ii) Reconciliation of income tax expense:
Group Company
2020 2019 2020 2019
RM RM RM RM
Profit before tax 14,486,132 14,048,687 9,252,875 8,343,586
Income tax using Malaysian statutory

tax rate of 24% 3,476,672 3,371,685 2,220,690 2,002,461
Non-deductible expenses 97,019 779,982 64,464 94,184
Non-taxable income (371,123) (860,309) (2,352,000) (2,160,000)
Tax losses not available for future set-off 66,846 63,355 66,846 63,355
Deferred tax assets not recognised 50,309 52,080 - -
Others 12,263 137 - -
3,331,986 3,406,930 - -
Under/(Over) provision in previous years

- Current tax 96,251 (217,837) - -
- Deferred tax (242,251) (61,385) - -
3,185,986 3,127,708 - -
20. EARNINGS PER ORDINARY SHARE
Basic earnings per ordinary share
The calculation of basic earnings per ordinary share at 31 March 2020 was based on the profit attributable to
ordinary shareholders of RM11,300,146 (2019 : RM10,920,979) and a weighted average number of ordinary
shares of 245,395,350 (2019 : 245,392,555) calculated as follows :
2020 2019

Issued ordinary shares at beginning of year 245,395,350 163,576,900
Effect of shares issued - 17,205
Effect of bonus issue in year 2019 - 81,798,450

Weighted average number of ordinary shares 245,395,350 245,392,555
Diluted earnings per ordinary share
The average market value of the Company’s shares for the purpose of calculating the dilutive effect of share
options was based on quoted market prices for the period during which the options were outstanding.
The calculation of diluted earnings per ordinary share at 31 March 2019 was based on the profit attributable
to ordinary shareholders of RM10,920,979 and a weighted average number of ordinary shares of 245,418,112
calculated as follows :
2020 2019

Weighted average number of ordinary shares as above 245,395,350 245,392,555
Effect of ESOS - 25,557
245,395,350 245,418,112
No diluted earning per share is presented for the financial year ended 31 March 2020 as the Company no longer
has dilutive potential ordinary shares as at the end of the reporting period.
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31 March 2020
21. DIVIDENDS
Dividends recognised by the Company are:

Sen per Total Date of
share amount payment
RM
2020

Final 2019 ordinary - single-tier 1.90 4,662,509 15 November 2019
Interim 2020 ordinary - single-tier 2.00 4,907,907 30 April 2020

9,570,416

2019

Final 2018 ordinary - single-tier 3.50 5,725,891 31 October 2018
Interim 2019 ordinary - single-tier 1.80 4,417,116 26 April 2019

10,143,007

After the end of the reporting period, the following dividend was proposed by the Directors. The dividend will be
recognised in the subsequent financial year upon approval by the shareholders of the Company at the forthcoming
Annual General Meeting.
Sen per
share
Final single-tier dividend 2.00
22. EMPLOYEE BENEFITS
Share-based payments
The Group offers vested share options over ordinary shares to executive employees (including Executive Directors
and Non-Executive Directors) with at least two years of continuous service in the Group. Movements in the
number of share options held by employees are as follows:
2020 2019
Weighted Weighted
average average
exercise Number of exercise Number of
price options price options
RM RM
Outstanding at beginning of year 0.97 7,569,150 1.45 5,101,100

Forfeited during the year - - 1.46 (35,000)
Exercised during the year - - 1.13 (20,000)
Expired during the year 0.97 (7,569,150) - -
Bonus issue - - - 2,523,050

Outstanding and exercisable at end of year - - 0.97 7,569,150
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31 March 2020
23. CONTINGENT LIABILITIES - COMPANY
The Company has issued corporate guarantee to certain vendors for the supply of goods and services provided
to a subsidiary up to a limit of RM31 million (2019: RM23 million) of which RM4.5 million (2019: RM2.0 million) of
liabilities were incurred as at the end of reporting date.
24. FINANCIAL INSTRUMENTS
24.1 Categories of financial instruments

The table below provides an analysis of financial instruments categorised as follows:
(a) Amortised cost (“AC”); and

(b) Fair value through other comprehensive income (“FVOCI”)
- Equity instrument designated upon initial recognition (“EIDUIR”)
Carrying FVOCI -
amount AC EIDUIR
RM RM RM
Group

2020

Financial assets

Other investments 11,920 - 11,920
Receivables (excluding deposits and prepayments) 26,577,290 26,577,290 -
Cash and cash equivalents 52,064,881 52,064,881 -

78,654,091 78,642,171 11,920
Payables and accruals 24,752,832 24,752,832 -
Carrying
amount AC
RM RM
Company

2020

Financial assets

Receivables (excluding deposits and prepayments) 9,800,000 9,800,000
Cash and cash equivalents 30,878 30,878

9,830,878 9,830,878

Payables and accruals 5,387,008 5,387,008
85
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31 March 2020
24. FINANCIAL INSTRUMENTS (cont’d)
24.1 Categories of financial instruments (cont’d)
Carrying FVOCI -
amount AC EIDUIR
RM RM RM
2019

Financial assets

Other investments 11,920 - 11,920
Receivables (excluding deposits and prepayments) 30,178,516 30,178,516 -
Cash and cash equivalents 49,544,473 49,544,473 -

79,734,909 79,722,989 11,920


Payables and accruals 24,256,185 24,256,185 -
Carrying
amount AC
RM RM
Company

2019

Financial assets

Receivables (excluding deposits and prepayments) 9,000,000 9,000,000
Cash and cash equivalents 13,099 13,099

9,013,099 9,013,099

Payables and accruals 4,859,767 4,859,767
24.2 Net gains/(losses) arising from financial instruments
Group Company
2020 2019 2020 2019
RM RM RM RM
Net gains/(losses) on :
Equity instruments designated at fair value
through other comprehensive income 370 431 - -
Financial assets measured at
amortised cost 617,720 (873,752) (60,000) (144,000)
618,090 (873,321) (60,000) (144,000)
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31 March 2020
24.3 Financial risk management
The Group and the Company have exposures to the following risks from their use of financial instruments:
• Credit risk
• Liquidity risk
• Market risk
24.4 Credit risk
Credit risk is the risk of a financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations. The Group’s exposure to credit risk arises principally from its
receivables from customers. The Company’s exposure to credit risk arises principally from its advances to
subsidiaries and financial guarantees given to certain vendors for the supply of goods and services provided
to a subsidiary.
Trade receivables
Risk management objectives, policies and processes for managing the risk
Management has a credit policy in place and the exposure to credit risk is monitored on an on-going basis.
Normally financial guarantees of shareholders or directors of customers are obtained and credit evaluations
are performed on customers requiring credit over a certain amount. The Group and the Company do not
require collateral in respect of financial assets.
At each reporting date, the Group or the Company assesses whether any of the trade receivables are credit
impaired.
The gross carrying amounts of credit impaired trade receivables are written off (either partially or full)
when there is no realistic prospect of recovery. This is generally the case when the Group or the Company
determines that the debtor does not have assets or sources of income that could generate sufficient cash
flows to repay the amounts subject to the write-off. Nevertheless, trade receivables that are written off could
still be subject to enforcement activities.
There are no significant changes as compared to previous year.
Exposure to credit risk, credit quality and collateral
As at the end of the reporting period, there was no significant concentration of credit risk. The maximum
exposure to credit risk arising from trade receivables is represented by the carrying amounts in the statement
of financial position.
Management has taken reasonable steps to ensure that receivables that are neither past due nor impaired
are stated at their realisable values. A significant portion of these receivables are regular customers that
have been transacting with the Group.
The Group receives financial guarantees given by shareholders or directors of customers in managing
exposure to credit risks. Trade receivables amounting to RM30,721,414 (2019 : RM38,044,079) are secured
by financial guarantees given by shareholders or directors of the receivables.
87
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31 March 2020
24.4 Credit risk (cont’d)
Trade receivables (cont’d)
Recognition and measurement of Impairment losses
In managing credit risk of trade receivables, the Group manages its debtors and takes appropriate actions
(including but not limited to legal actions) to recover long overdue balances. Generally, trade receivables will
pay within 150 days. The Group’s debt recovery process is as follows:
a) Above 90 days past due after credit term, the Group will start to initiate a structured debt recovery
process which is monitored by the sales management team; and
b) Above 120 days past due, the Group will commence a legal proceeding against the customer.
The Group uses an allowance matrix to measure ECLs of trade receivables for all segments. Consistent with
the debt recovery process, invoices which are past due 90 days will be considered as credit impaired.
Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing
through successive stages of delinquency to 90 days past due.
Loss rates are based on actual credit loss experience over the past three years. The Group also considers
differences between (a) economic conditions during the period over which the historic data has been
collected, (b) current conditions and (c) the Group’s view of economic conditions over the expected lives
of the receivables. Nevertheless, the Group believes that these factors are immaterial for the purpose of
impairment calculation for the year.
The following table provides information about the exposure to credit risk and ECLs for trade receivables.
Gross
carrying Loss Net
amount allowance balance
RM RM RM
Group

2020

Not past due 12,312,138 (689,512) 11,622,626
Past due 1 - 30 days 6,511,033 (1,264,561) 5,246,472
Past due 31 - 60 days 6,132,515 (1,862,309) 4,270,206
Past due 61 - 90 days 4,543,906 (1,823,630) 2,720,276

29,499,592 (5,640,012) 23,859,580
Credit impaired
More than 90 days past due 9,689,114 (7,101,726) 2,587,388

39,188,706 (12,741,738) 26,446,968

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31 March 2020
Trade receivables (cont’d)
Recognition and measurement of Impairment losses (cont’d)
Gross
carrying Loss Net
amount allowance balance
RM RM RM
2019

Not past due 21,480,419 (549,778) 20,930,641
Past due 1-30 days 5,362,360 (822,442) 4,539,918
Past due 31-60 days 2,284,557 (2,173,748) 110,809
Past due 61-90 days 2,717,978 (1,994,186) 723,792

31,845,314 (5,540,154) 26,305,160
Credit impaired
Past due more than 90 days
15,724,555 (11,941,302) 3,783,253

47,569,869 (17,481,456) 30,088,413
The movements in the allowance for impairment in respect of trade receivables during the year are shown
below.
2020
Trade
receivables
Lifetime
ECL
RM
Group
Balance at 1 April 2018 14,970,732
Net remeasurement of loss allowance 2,510,724
Balance at 31 March 2019/1 April 2019 17,481,456
Amounts written off (5,682,750)
Net remeasurement of loss allowance 943,032
Balance at 31 March 2020 12,741,738
The allowance account in respect of receivables is used to record impairment losses. Unless the Group is
satisfied that recovery of the amount is possible, the amount considered irrecoverable is written off against
the receivable directly.
89
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31 March 2020
Cash and cash equivalents
The cash and cash equivalents are held with banks and financial institutions. As at the end of the reporting
period, the maximum exposure to credit risk is represented by their carrying amounts in the statements of
financial position.
These banks and financial institutions have low credit risks. In addition, some of the bank balances are
insured by government agencies. Consequently, the Group and the Company are of the view that the loss
allowance is not material and hence, it is not provided for.
Other receivables
Credit risks on other receivables are mainly arising from deposits paid for hostel rented and utilities. These
deposits will be received at the end of each lease terms. The Group manages the credit risk together with the
leasing arrangement.
As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying
amounts in the statements of financial position.
As at the end of the reporting period, the Group and the Company did not recognise any allowance for
impairment losses.
Inter-company advances
The Company provides unsecured loans and advances to subsidiaries. The Company monitors the ability of
the subsidiaries to repay the loans and advances on an individual basis.
As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying
amounts in the statements of financial position.
Loans and advances provided are not secured by any collateral or supported by any other credit enhancements.
Recognition and measurement of impairment loss
Generally, the Company considers loans and advances to subsidiaries to be with low credit risk. The Company
assumes that there is a significant increase in credit risk when a subsidiary’s financial position deteriorates
significantly. As the Company is able to determine the timing of payments of the subsidiaries’ loans and
advances when they are payable, the Company considers the loans and advances to be in default when the
subsidiaries are not able to pay when demanded. The Company considers a subsidiary’s loan or advance to
be credit impaired when :
• The subsidiary is unlikely to repay its loan or advance to the Company in full; or
• The subsidiary is continuously loss making and is having a deficit shareholders’ fund.
The Company determines the probability of default for these loans and advances individually using internal
information available.
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Recognition and measurement of impairment loss (cont’d)
The following table provides information about the exposure to credit risk and ECLs for subsidiaries’ loans
and advances as at 31 March 2020.
Gross Impairment
carrying loss Net
amount allowances balance
RM RM RM
Company

2020

Low credit risk 57,371,747 - 57,371,747
Credit impaired 564,000 (564,000) -

57,935,747 (564,000) 57,371,747
2019

Low credit risk 57,177,564 - 57,177,564
Credit impaired 504,000 (504,000) -

57,681,564 (504,000) 57,177,564
The movements in the allowance for impairment in respect of subsidiaries’ loans and advances during the
financial year is as follows:
2020
Lifetime
ECL
RM’000
Company
Balance at 1 April 2018 360,000
Net remeasurement of loss allowance 144,000
Balance at 31 March 2019/1 April 2019 504,000
Net measurement of loss allowance 60,000
Balance at 31 March 2020 564,000
91
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31 March 2020
Financial guarantees
The Company provides guarantees to certain vendors for the supply of goods and services to a subsidiary.
The Company monitors on an on-going basis the results of the subsidiary and repayments made by the
subsidiary.
The maximum exposure to credit risk amounts to RM4.5 million (2019: RM2.0 million) representing outstanding
balance for the supply of goods and services of the subsidiaries as at the end of the reporting period.
The financial guarantees have not been recognised since the fair value on initial recognition was not material.
Recognition and measurement of impairment loss
The Company assumes that there is a significant increase in credit risk when a subsidiary’s financial position
deteriorates significantly. The Company considers a financial guarantee to be credit impaired when :
• The subsidiary is unlikely to repay its credit obligation to the vendors in full; or
• The subsidiary is continuously loss making and is having a deficit shareholders’ fund.
The Company determines the probability of default of the guaranteed loans individually using internal
information available.
As at the end of the reporting period, the Company did not recognise any allowance for impairment losses.
24.5 Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s exposure to liquidity risk arises principally from its various payables.
The Group maintains a level of cash and cash equivalents and bank facilities deemed adequate by the
management to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they
fall due.
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at
significantly different amounts.
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31 March 2020
24.5 Liquidity risk (cont’d)
Maturity analysis
The table below summarises the maturity profile of the Group’s and the Company’s financial liabilities as at
the end of the reporting period based on undiscounted contractual payments:
Carrying Contractual Contractual Under

amounts interest rate cash flows 1 year
RM % RM RM

Group

2020

Non-derivative financial liabilities

Payables and accruals 24,752,832 - 24,752,832 24,752,832

2019



Company

2020


Corporate guarantee - - 4,514,798 4,514,798

5,387,008 9,901,806 9,901,806

2019


Corporate guarantee - - 2,005,533 2,005,533

4,859,767 6,865,300 6,865,300
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31 March 2020
24.6 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will
affect the Group’s financial position or cash flows.
24.6.1 Currency risk
The Group is exposed to foreign currency risk on sales that are denominated in a currency other
than Ringgit Malaysia. The currency giving rise to this risk is primarily Singapore Dollar (“SGD”).
Exposure to foreign currency risk
The Group’s exposure to foreign currency (a currency other than Ringgit Malaysia) risk, based on
carrying amounts as at the end of the reporting period are as follows :
Denominated in
SGD
RM
2020
Cash and cash equivalents 322,385

Receivables 327,011
Exposure in the statement of financial position 649,396
2019
Cash and cash equivalents 200,451

Receivables 340,087
Exposure in the statement of financial position 540,538
Currency sensitivity analysis
Foreign currency risk arises from the Group’s monetary financial assets primarily denominated in
SGD. There is no other material exposure to foreign currency risk, and hence, sensitivity analysis
will only be presented for the abovementioned exposures.
A 10% strengthening of SGD against RM at the end of the reporting period would have increased
post-tax profit or loss by the amounts shown below. This analysis assumes that all other variables
remain constant and ignores any impact of forecasted sales and purchases.
Profit or Loss
2020 2019
RM RM

SGD 49,354 41,081
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ANNUAL REPORT 2020

31 March 2020
24.6 Market risk (cont’d)
24.6.1 Currency risk (cont’d)
Currency sensitivity analysis (cont’d)
A 10% weakening of SGD against RM at the end of the reporting period would have had equal but
opposite effect as shown above, on the basis that all other variables remain constant.
24.6.2 Interest rate risk
Short-term receivables and payables are not significantly exposed to interest rate risk.
The Group manages its interest rate risk by placing such balances with reputable banks, on
varying maturities and interest rate terms.
Exposure to interest rate risk
The interest rate profile of the Group’s significant interest-bearing financial instruments, based on
carrying amounts as at the end of the reporting period was:
2020 2019
RM RM
Group

Fixed rate instruments

Financial assets 49,889,816 44,016,170
Interest rate risk sensitivity analysis
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through
profit or loss. Therefore, a change in interest rates at the end of the reporting period would not
affect profit or loss.
24.7 Fair value information
The carrying amounts of cash and cash equivalents, short-term receivables, inter-company balances and
payables approximate their fair values due to the relatively short-term nature of these financial instruments.
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31 March 2020
24.7 Fair value information (cont’d)
The table below analyses financial instrument carried at fair value and those not carried at fair value for which
fair value is disclosed, together with its fair value and its carrying amount shown in the statement of financial
position.
Fair value of Fair value of

financial instruments financial instruments Total
carried at fair value not carried at fair value fair Carrying
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total value amount
RM RM RM RM RM RM RM RM RM RM

Group

2020

Financial asset

Investment in
quoted shares 11,920 - - 11,920 - - - - 11,920 11,920
Group

2019

Financial asset

Investment in
quoted shares 11,920 - - 11,920 - - - - 11,920 11,920
Policy on transfer between levels
The fair value of an asset to be transferred between levels is determined as of the date of the event or change
in circumstances that caused the transfer.
Level 1 fair value
Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical financial assets or
liabilities that the entity can access at the measurement date.
Level 2 fair value
Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable
for the financial assets or liabilities, either directly or indirectly.
Transfers between Level 1 and Level 2 fair values
There has been no transfer between Level 1 and Level 2 fair values during the financial year. (2019: no
transfer in either directions).
Level 3 fair value
Level 3 fair value is estimated using unobservable inputs for the financial assets and liabilities.
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25. RELATED PARTIES
Identity of related parties
For the purposes of these financial statements, parties are considered to be related to the Group or the Company
if the Group or the Company has the ability, directly or indirectly, to control or jointly control the party or exercise
significant influence over the party in making financial and operating decisions, or vice versa, or where the Group
or the Company and the party are subject to common control. Related parties may be individuals or other entities.
Related parties also include key management personnel defined as those persons having authority and
responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key
management personnel include all the Directors of the Group.
The Group has related party relationship with its significant investors, subsidiaries and key management personnel.
Significant related party transactions
Significant transactions with related parties other than those disclosed elsewhere in the financial statements
are shown below. The balances related to the below transactions are shown in Notes 6 and 10 to the financial
statements.
2020 2019
RM RM
Group

Transactions with a Director:
Rental of office building paid 84,000 84,000
Rental of factory land paid 36,000 36,000

Company

Transactions with subsidiaries:
Management fee received/receivable 2,400,000 2,400,000
Gross dividend receivable 9,800,000 9,000,000
Rental received 540,000 540,000
The transactions with the Director and subsidiaries have been entered into in the normal course of business and
have been established under negotiated terms.
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31 March 2020
26. OPERATING SEGMENTS
The business segment is based on the Group’s management and internal reporting structure.
Business segments
The Group’s only reportable segment comprises the manufacturing and sale of pre-cast concrete products and
trading of readymixed concrete.
Segment information has not been separately presented because internal reporting uses the Group’s financial
statements.
Geographical information
Financial information by geographical segments of the Group’s operations are not prepared as the Group operates
solely in Malaysia.
Major customers
There are no major customers with revenue equal to or more than 10% of the Group’s total revenue.
27. CAPITAL MANAGEMENT
The Group’s objectives when managing capital is to maintain a strong capital base and safeguard the Group’s
ability to continue as a going concern, so as to maintain investor, creditor and market confidence and to sustain
future development of the business.
There were no changes in the Group’s approach to capital management during the financial year.
28. CAPITAL COMMITMENT - GROUP
2020 2019
RM RM

Property, plant and equipment
Contracted but not provided for 2,451,000 -
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29. SIGNIFICANT CHANGES IN ACCOUNTING POLICIES
During the financial year, the Group and the Company adopted MFRS 16.
Definition of a lease
On transition to MFRS 16, the Group elected to apply the practical expedient to grandfather the assessment of
which transactions are leases. It applied MFRS 16 only to contracts that were previously identified as leases.
Contracts that were not identified as leases under MFRS 117 and IC Interpretation 4, Determining whether an
Arrangement contains a Lease were not reassessed. Therefore, the definition of a lease under MFRS 16 has been
applied only to contracts entered into or changed on or after 1 April 2019.
As a lessee
Where the Group and the Company are a lessee, the Group and the Company applied the requirements of MFRS
16 retrospectively with the cumulative effect of initial application as an adjustment to the opening balance of
retained earnings at 1 April 2019.
At 1 April 2019, for leases that were classified as operating lease under MFRS 117, lease liabilities were measured
at the present value of the remaining lease payments, discounted at the Group entities’ incremental borrowing
rate as at 1 April 2019. Right-of-use assets are measured at an amount equal to the lease liability, adjusted by the
amount of any prepaid or accrued lease payments.
The Group used the following practical expedients when applying MFRS 16 to leases previously classified as
operating lease under MFRS 117 :
- applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months
of lease term as at 1 April 2019;
- excluded initial direct costs from measuring the right-of-use asset at the date of initial application; and
- used hindsight when determining the lease term if the contract contains options to extend or terminate the
lease.
For leases that were classified as finance lease under MFRS 117, the carrying amounts of the right-of-use asset
and the lease liability at 1 April 2019 are determined to be the same as the carrying amount of the leased asset
and lease liability under MFRS 117 immediately before that date.
As a lessor
Group entities who are intermediate lessor reassessed the classification of a sublease previously classified as an
operating lease under MFRS 117 and concluded that the sublease is an operating lease under MFRS 16.
29.1 Impacts on financial statements
The adoption of MFRS 16 did not have any material impact to the financial statements of the Company.
99
OKA CORPORATION BHD
STATEMENT BY DIRECTORS PURSUANT TO

Section 251(2) of the Companies Act 2016
In the opinion of the Directors, the financial statements set out on pages 45 to 99 are drawn up in accordance with
Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the
Companies Act 2016 in Malaysia so as to give a true and fair view of the financial position of the Group and of the
Company as of 31 March 2020 and of their financial performance and cash flows for the financial year then ended.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
…....................................………………………
Sharifuddin bin Shoib, AMP
Director
…....................................………………………
Ong Koon Ann
Director
Ipoh
100
ANNUAL REPORT 2020
STATUTORY DECLARATION PURSUANT TO

Section 251(1)(b) of the Companies Act 2016
I, Lau Wai Yeen, the officer primarily responsible for the financial management of OKA Corporation Bhd, do solemnly
and sincerely declare that the financial statements set out on pages 45 to 99 are, to the best of my knowledge and
belief, correct and I make this solemn declaration conscientiously believing the declaration to be true, and by virtue
of the Statutory Declarations Act 1960.
Subscribed and solemnly declared by the abovenamed Lau Wai Yeen, NRIC: 700418-08-6057, MIA CA11467, at
Ipoh in the State of Perak Darul Ridzuan on 17 August 2020.
….........................................
Lau Wai Yeen
Before me:
KONG WAI NGEE
COMMISSIONER FOR OATHS
IPOH
101
OKA CORPORATION BHD
INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF OKA CORPORATION BHD
(Registration No. 200001017334 (519941-H)) (Incorporated in Malaysia)
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of OKA Corporation Bhd, which comprise the statements of financial position
as at 31 March 2020 of the Group and of the Company, and the statements of profit or loss and other comprehensive
income, statements of changes in equity and statements of cash flows of the Group and of the Company for the year
then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out
on pages 45 to 99.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group
and of the Company as at 31 March 2020, and of their financial performance and their cash flows for the year then
ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards
and the requirements of the Companies Act 2016 in Malaysia.
Basis for Opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards
on Auditing. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for
the Audit of the Financial Statements section of our auditors’ report. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Independence and Other Ethical Responsibilities
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics,
Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards
Board for Accountants’ International Code of Ethics for Professional Accountants (including International
Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with
the By-Laws and the IESBA Code.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial statements of the Group and of the Company for the current year. These matters were addressed in
the context of our audit of the financial statements of the Group and of the Company as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
1. Valuation of inventories
Refer to Note 1.4 Use of estimates and judgements and Note 9 Inventories to the financial statements.
The key audit matter
The Group’s inventories of RM41 million as at 31 March 2020 in the consolidated statement of financial position
represents about 20% of the Group’s total assets.
The Group made the write-down of finished goods, if necessary, based on the analysis of the aging of finished
goods as well as the analysis of the potential obsolescence due to low demand by customers following the
completion of projects and for inventories with odd sizes or in loose quantities. The recognition of inventory
write-down involves estimates and judgements by the Directors and there is a risk that the actual write-down
required may be different to those estimated. This is a key audit matter because evaluating the estimates made
by the Directors requires us to exercise significant judgement.
How the matter was addressed in our audit
Our audit procedures performed in this area included, among others:

• Inquired the management and assessed their process in identifying slow-moving and/or obsolete
inventories;
• Tested the age profile of the inventories to the daily production report;
• Evaluated the Group’s basis of provision for slow-moving inventories as at 31 March 2020 based on the
age of the inventory relative to past and present sales;
• Compared the carrying value of finished goods as at 31 March 2020 to sales made to external customers
subsequent to the year end to test whether the finished goods are recorded at the lower of costs and net
realisable value.
102
ANNUAL REPORT 2020
INDEPENDENT AUDITORS’ REPORT (cont’d)

Key Audit Matters (cont’d)
2. Valuation of trade receivables
Refer to Note 1.4 Use of estimates and judgements and Note 10 Receivables, deposits and prepayments to the
financial statements.
The key audit matter
The Group’s trade receivables of RM26 million as at 31 March 2020 represents about 13% of the Group’s total
assets.
The Group recognises loss allowances for expected credit losses on trade receivables, if necessary, based on
probability-weighted estimate of credit losses, taking into consideration historical past due aging for the past
three years. The recognition of expected credit losses on trade receivables involves estimates and judgements
by the Directors and there is a risk that the actual impairment loss required may be different to those estimated.
This is a key audit matter because evaluating the estimates made by the Directors requires us to exercise
significant judgement.
How the matter was addressed in our audit
Our audit procedures performed in this area included, among others:

• Inquired and assessed the Group’s process in identifying debts that are potentially doubtful of recovery;
• Tested the reliability of the aging of trade receivables by testing the age profile of the debts to the
respective invoices;
• Considered the reasonableness of the basis of expected credit loss rate of trade receivables;
• Performed predictive substantive analytical procedure on the reasonableness of the expected credit loss
using the flow rate method based on past due ageing as at 31 March 2018, 2019 and 2020;
• Evaluated the appropriateness of the accounting policies based on the requirements of MFRS 9.
We have determined that there are no key audit matters in the audit of the separate financial statements of the
Company to communicate in our auditors’ report.
Information Other than the Financial Statements and Auditors’ Report Thereon
The Directors of the Company are responsible for the other information. The other information comprises the
information included in the annual report, but does not include the financial statements of the Group and of the
Company and our auditors’ report thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the annual report and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read
the annual report and, in doing so, consider whether the annual report is materially inconsistent with the financial
statements of the Group and of the Company or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of
the annual report, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Statements
The Directors of the Company are responsible for the preparation of financial statements of the Group and of the
Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International
Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The Directors are also
responsible for such internal control as the Directors determine is necessary to enable the preparation of financial
statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing
the ability of the Group and of the Company to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the
Group or the Company or to cease operations, or have no realistic alternative but to do so.
103
OKA CORPORATION BHD

Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the
Company as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards
on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on
Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements of the Group and of the
Company, whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
internal control of the Group and of the Company.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the Directors.
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the ability of the Group or of the Company to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related
disclosures in the financial statements of the Group and of the Company or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’
report. However, future events or conditions may cause the Group or the Company to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and content of the financial statements of the Group and of the
Company, including the disclosures, and whether the financial statements of the Group and of the Company
represent the underlying transactions and events in a manner that gives a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial statements of the Group. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most significance in
the audit of the financial statements of the Group and of the Company for the current year and are therefore the key
audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our auditors’ report because the adverse consequences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.
104
ANNUAL REPORT 2020

Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiaries of which
we have not acted as auditors are disclosed in Note 6 to the financial statements.
Other Matter
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the
Companies Act 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person for
the content of this report.
KPMG PLT Lee Phaik Im

LLP0010081-LCA & AF 0758 Approval Number : 03177/05/2021 J
Chartered Accountants Chartered Accountant
Penang
105
This page is intentionally left blank
OKA CORPORATION BHD
200001017334 (519941-H)
(Incorporated in Malaysia)
PROXY FORM CDS Account No. No. of shares held
I/We
(Full name in block, NRIC/Passport/Company No.)
Tel : of (address) being
member(s) of OKA Corporation Bhd, hereby appoint
Proportion of Shareholdings
Full Name (in Block) NRIC/Passport No.
No. of Shares %
Address
and/or* (*delete as appropriate)
Proportion of Shareholdings
Full Name (in Block) NRIC/Passport No.
No. of Shares %
Address
or failing the abovenamed proxies, the Chairman of the Meeting as my/our proxy to vote for me/us and on my/our behalf at the General Meeting
of the Company to be held at Lavender Hall – Level 3, Kinta Riverfront Hotel & Suites, Kinta Riverfront, Jalan Lim Bo Seng, 30000 Ipoh, Perak
Darul Ridzuan on Tuesday, 29 September 2020 at 10.30 a.m. or any adjournment thereof, and to vote as indicated below-
Description of Resolution Ordinary Resolution For Against
Declaration of final dividend Resolution 1
Approval of payment of Directors’ fees Resolution 2
Approval of payment of allowances to Non-Executive Directors Resolution 3
Re-election of Mr. Ong Choo Ian Resolution 4
Re-election of Mr. Chok Hooa @ Chok Yin Fatt, PMP Resolution 5
Re-appointment of Messrs. KPMG PLT as Auditors and authorizing the Directors to fix their Resolution 6
remuneration
Authority to the Directors to issue shares pursuant to Sections 75 & 76 of the Companies Resolution 7
Act, 2016
Retain Mr. Chok Hooa @ Chok Yin Fatt, PMP as an Independent Non-Executive Director Resolution 8
Retain Mr. Gan Boon Koo @ Gan Boon Kiu as an Independent Non-Executive Director Resolution 9
Retain En. Sharifuddin Bin Shoib, AMP as an Independent Non-Executive Director Resolution 10
Please indicate with an “X” in the space provided whether you wish your votes to be cast for or against the resolutions. In the absence of
specific direction, your proxy will vote or abstain as he thinks fit.
Signed this ____ day of ____ ______________________________

Signature*
Member
*Manner of execution -
(a) If you are an individual member, please sign where indicated.
(b) If you are a corporate member which has a common seal, this proxy form should be executed under seal in accordance with the constitution of your corporation.
(c) If you are a corporate member which does not have a common seal, this proxy form should be affixed with the rubber stamp of your company (if any) and
executed by:
(i) At least two (2) authorized officers, of whom one shall be a director; or
(ii) Any director and/or authorised officers in accordance with the laws of the country under which your corporation is incorporated.
Notes -
1. A member entitled to attend and vote at this general meeting is entitled to appoint a proxy or attorney or in the case of a corporation, to appoint a duly authorized
representative to attend, participate, speak and vote in his place in accordance with Section 334(1) of the Act. A proxy may but need not be a member of the
Company.
2. A member may appoint not more than two (2) proxies to attend and vote at the same meeting. Where a member appoints more than one (1) proxy and such
appointment shall be invalid unless he specifies the proportion of his shareholding to be represented by each proxy.
3. Where a member of the Company is an authorised nominee as defined in the Central Depositories Act, it may appoint not more than two (2) proxies in respect
of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account and the number of shares to be
represented by each proxy must be clearly indicated.
4. Where a member of the Company is an exempt authorized nominee which holds ordinary shares in the Company for multiple beneficial owners in one
securities account (“omnibus account”), there is no limit to the number of proxies which the exempt authorized nominee may appoint in respect of each omnibus
account it holds. An exempt authorized nominee refers to an authorized nominee defined under the Securities Industry (Central Depositories) Act 1991 which
is exempted from compliance with the provisions of subsection 25A(1) of the said Act.
5. The instrument appointing a proxy shall be in writing under the hand of the appointor or his attorney duly authorized in writing or if such appointor is a
corporation, under its Seal or the hand of its attorney or by a duly authorised officer on behalf of the corporation.
6. To be valid this form duly completed must be deposited at the registered office of the Company not less than 48 hours before the time for holding the meeting
or adjourned meeting at which the person named in the instrument proposes to vote, or, in the case of a poll, not less than twenty-four (24) hours before the
time appointed for the taking of the poll, and in default the instrument of proxy shall not be treated as valid.
7. By submitting the duly executed Proxy Form, the member consents to the Company (and/or its agents/ service providers) collecting, using and disclosing the
personal data therein in accordance with the Personal Data Protection Act 2010, for the purpose of the meeting or at any adjournment thereof.
8. Only a depositor whose name appears on the Record of Depositors as at 21 September 2020 shall be entitled to attend the general meeting or appoint a proxy
to attend, speak and vote on his behalf.
Please fold along this line
Stamp
The Company Secretary
OKA Corporation Bhd

No.6, Lebuhraya Chateau, Off Persiaran Kampar
30250 Ipoh Perak Malaysia
Please fold along this line

OKA CORPORATION BHD 200001017334 (519941-H)
No. 6, Lebuhraya Chateau, Off Pesiaran Kampar,
K
30250 Ipoh, Perak, Malaysia. OKA CORPORATION BHD
200001017334 (519941-H)
www.oka.com.my
ANNUAL REPORT 2020 LAPORAN TAHUNAN Annual Report / Laporan Tahunan 2020

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OKA CORPORATION BHD 200001017334 (519941-H)

No. 6, Lebuhraya Chateau, Off Pesiaran Kampar,

Notice of Annual General Meeting 3-5

Notice of Dividend Entitlement And Payment 4

Statement Accompanying Notice of Annual General Meeting 6

Profile of the Board of Directors 8-9

Profile of Key Senior Management 10

Audit Committee Report 11 - 13

Corporate Governance Overview Statement 14 - 26

Statement on Risk Management and Internal Control 27 - 28

Management Discussion And Analysis 29 - 30

Reports & Financial Statements 38 - 105

Proxy Form Enclosed

Corporate Vision Corporate Mission Corporate Culture / Core Value

OKA Group’s vision is to be the To achieve organizational goals • Customer satisfaction

NOTICE OF ANNUAL GENERAL MEETING

4. To approve the payment of allowances to Non-Executive Directors up to an amount (Resolution 3)

(i) Mr. Ong Choo Ian (Resolution 4)

NOTICE OF ANNUAL GENERAL MEETING (cont’d)

8. Retention of Independent Non-Executive Directors

NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENT

By Order of the Board

Low Hor Foong (MAICSA 0763512)

NOTICE OF ANNUAL GENERAL MEETING (cont’d)

2. Explanatory Notes On Ordinary Business

3. Explanatory Notes On Special Business

Details of individuals who are standing for election as Directors

The rest of this page is intentionally left blank.

BOARD OF DIRECTORS SHARE REGISTRARS

Executive Directors Telephone : 03-27839299

Independent Non-Executive Directors REGISTERED OFFICE

Mr. Lau Wai Yeen (MIA 11467) Telephone : 05-2542741, 05-2542745

Chairman SUBSIDIARY COMPANIES

OKA Concrete Industries Sdn Bhd

Chairman PRINCIPAL BANKERS

Alliance Bank Malaysia Berhad

Telephone : 604-238 2288

PROFILE OF THE BOARD OF DIRECTORS

SHARIFUDDIN BIN SHOIB, AMP

ONG KOON ANN

QUAH SEOK KENG

PROFILE OF THE BOARD OF DIRECTORS (cont’d)

ONG CHOO IAN

CHOK HOOA @ CHOK YIN FATT, PMP

GAN BOON KOO @ GAN BOON KIU

KEY SENIOR MANAGEMENT’S PROFILE

ONG KOON ENG

LAU WAI YEEN

TEY HOCK LIM

AUDIT COMMITTEE REPORT

MEMBERSHIP AND ATTENDANCE

Members Number of Meetings Attended

Mr. Chok Hooa @ Chok Yin Fatt, PMP – Chairman 5/5

Mr. Gan Boon Koo @ Gan Boon Kiu – Member 5/5

En. Sharifuddin Bin Shoib, AMP – Member 5/5

SUMMARY OF WORKS OF THE AUDIT COMMITTEE

AUDIT COMMITTEE REPORT (cont’d)

Risk Management and Internal Control

AUDIT COMMITTEE REPORT (cont’d)