Professional Documents
Culture Documents
www.heitech.com.my
COMPANYS PERFORMANCES
2
5
6
7
COMPANY
8
11
12
14
15
16
18
20
24
24
25
26
Chairmans Statement
Global Reach
Corporate Information
Group Structure
Company Overview
Solutions & Services
Board of Directors
Profile of Directors
Profile of GCEO
Profile of Company Secretary
Chairmans Council
Significant Events
COMPANYS CORPORATE
RESPONSIBILITY LEADERSHIP
36 Corporate Responsibility
COMPANYS CORPORATE
GOVERNANCE
39 Audit Committee Report
43 Statement of Corporate Governance
51 Statement on Risk Management &
Internal Control
56 Disclosure to Bursa Malaysia
FINANCIAL STATEMENTS
58 Statement of Directors Responsibilities
59 Financial Statements
OTHER INFORMATION
140 List of Properties
141 Analysis of Shareholdings
Form of Proxy
inside this
report
NOTICE OF
ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN THAT THE TWENTIETH
(20TH) ANNUAL GENERAL MEETING OF THE
COMPANY WILL BE HELD AT BALLROOM
SELANGOR 1, GRAND DORSETT SUBANG
HOTEL, JALAN SS 12/1, 47500 SUBANG JAYA,
SELANGOR DARUL EHSAN, MALAYSIA ON
WEDNESDAY, 17 JUNE 2015, AT 10:30 A.M.
FOR THE FOLLOWING PURPOSES:
To receive and adopt the Audited Financial Statements of the Company for the financial year
ended 31 December 2014 together with the Reports of Directors and Auditors.
Resolution 1
To re-elect YBhg. Dato Dr. Mohamed Ariffin bin Aton retiring under Article 82 of the Companys
Articles of Association and who, being eligible, offers himself for re-election.
Resolution 2
To re-elect Encik Sulaiman Hew bin Abdullah retiring under Article 82 of the Companys
Articles of Association and who, being eligible, offers himself for re-election.
Resolution 3
To re-elect Puan Wan Ainol Zilan binti Abdul Rahim retiring under Article 82 of the Companys
Articles of Association and who, being eligible, offers herself for re-election.
Resolution 4
To consider and, if thought fit, to pass the following Ordinary Resolution in accordance with
Section 129 of the Companies Act, 1965:
Resolution 5
That YBhg Dato Mohd Fadzli bin Yusof who has attained the age of 70, retiring pursuant to
Section 129 (6) of the Companies Act, 1965, be and is hereby re-appointed a Director of the
Company to hold office until the next Annual General Meeting.
6
Resolution 6
Resolution 7
To approve the payment of Directors Fees for the financial year ended 31 December 2014.
Resolution 8
To re-appoint Messrs. Hanafiah Raslan & Mohamad as Auditors for the ensuing year and to
authorise the Directors to fix the remuneration of the Auditors.
Resolution 9
10
To consider and, of thought fit, to pass the following resolution as Ordinary Resolution:
Proposed Authority to Issue Shares
THAT pursuant to Section 132D of the Companies Act 1965, the Directors be and are hereby
authorised to issue shares of the Company at any time until the conclusion of the next Annual
General Meeting and upon such terms and conditions and for such purposes as the Directors
may, in their absolute discretion, deem fit provided that the aggregate number of shares to
be issued does not exceed 10% of the issued share capital of the Company for the time
being, subject always to the approval of all relevant regulatory bodies being obtained for such
issue and allotment.
Resolution 10
11
www.heitech.com.my
the conclusion of the next AGM of HeiTech following the forthcoming AGM at which such
proposed Shareholders Mandate is passed, or at which time it will lapse, or the
authority is renewed; or
Resolution 11
NOTICE OF
annual general meeting
Notes:
1.
2.
3.
4.
5.
(ii)
i.
ii.
iii.
STATEMENT ACCOMPANYING
NOTICE OF ANNUAL GENERAL MEETING
PURSUANT TO PARAGRAPH 8.27(2) OF THE LISTING REQUIREMENTS OF BURSA MALAYSIA
SECURITIES BERHAD
1. The profile of the Directors who are standing for re-appointment and re-election are set out on pages 20 to 23
of the Annual Report.
2. The details of the Directors shareholdings in the Company, are set out on pages 141 of the Annual Report.
3. None of the Company Directors hold any interest in the Companys subsidiaries.
www.heitech.com.my
ADMINISTRATIVE
GUIDELINES AND NOTES
20TH ANNUAL GENERAL MEETING
TO VALUED SHAREHOLDERS,
Administrative guidelines and notes for HeiTech Padu Berhad 20th Annual General Meeting (AGM)
Date : 17 June 2015
Time : 10.30 a.m.
Venue :
BALLROOM SELANGOR 1, GRAND DORSETT SUBANG HOTEL, JALAN SS 12/1, 47500 SUBANG JAYA,
SELANGOR DARUL EHSAN
Registration
www.heitech.com.my
FINANCIAL CALENDAR
2014/2015
27
FEBRUARY 2015
26
NOVEMBER 2014
Quarterly rpt on consolidated results for the
financial period ended 30/9/2014
Quarterly
rpt
on
consolidated results for
the financial period ended
31/12/2014
28
29
AUGUST 2014
MAY 2014
Quarterly rpt on consolidated results for
the financial period ended 31/3/2014
CHAIRMANS
STATEMENT
www.heitech.com.my
OPERATIONS REVIEW
Reinforcing our Foundation
2014 proved to be a year of putting HeiTech back on
track and to sustain our competitive advantage. Strong
actions were taken throughout the Group to realign the
operational structure and make it more cost-effective,
including improving internal processes, ensuring timely
management of project delivery as well as securing the
pipeline of new projects for future growth.
Recognising the challenging task ahead and fluidity of the
market, we have empowered our Operating Companies
(OCs) where the respective CEOs drive their business, as
approved by their respective Boards. In doing so, we gave
our OCs a platform to strengthen their capabilities and
competitive edge in key sectors namely internal security,
transport, financial services, healthcare, and defence.
Taking on an entrepreneurial approach, we encouraged
the CEOs to be more market-driven, as well as nurture
the spirit of innovation in designing products and solutions
for their respective areas of specialties. This approach
has improved the efficiency, thus contributing positively to
the Groups result. Members of HeiTech Board also sit in
the Operating Companies Board to ensure proper check
and balance.
We realised that a strong framework of compliance and
governance must be in place inline with the growth
aspiration. For that, we enhance the roles of the central
support functions, namely the Central Review Committee
(CRC) and Central Risk Review Committee (CRRC).
With the ultimate aim of having a tighter focus on
operations and increase our success rate, all tender
participation and upstream proposals by HeiTech and its
subsidiaries must first be reviewed and deliberated by the
CRC. Recognising that our customers demand for more
holistic and tailored solutions, we have to ensure that
every aspect of an initiative, from architecture, technology,
implementation and delivery be taken into consideration.
10
Chairmans
statement
11
EUROPE
www.heitech.com.my
ASIA
AFRICA
AUSTRALIA
GLOBAL REACH
Australia
Indonesia
Sri Lanka
Automotive Industry
Solutions
15 Global
Services
Marketplace
Brunei
Malaysia
Thailand
System Integration
Services
13 Countries
System
Integration
Services
Cambodia
Myanmar
China
Philippines
United Kingdom
Ghana
Saudi Arabia
Vietnam
Go
4 Countries
Data Centre
Services
2 Countries
Consultancy
Services
12
CORPORATE
INFORMATION
BOARD OF DIRECTORS
DATO MOHD HILMEY BIN MOHD TAIB
Chairman
COMPANY SECRETARY
SITI SHAHWANA BINTI ABDUL HAMID
MAICSA 7018383
CHAIRMANS COUNCIL
DATO MOHD HILMEY BIN MOHD TAIB
Chairman
HARRIS BIN ISMAIL
Group Chief Executive Officer
13
www.heitech.com.my
REGISTERED OFFICE
PRINCIPAL SOLICITORS
INCORPORATED
5 August 1994
WEBSITE ADDRESS
SHARE REGISTRAR
AGM HELPDESK
Khyrul Anwaar Bin
Mohamed Nor Azizi
PRINCIPAL BANKERS
www.heitech.com.my
AUDITOR
14
GROUP
STRUCTURE
WHOLLY OWNED SUBSIDIARIES
HeiTech e*Business Solution Sdn. Bhd. (100%)
HeiTech Managed Services Sdn. Bhd. (100%)
HeiTech i-Solutions Sdn. Bhd. (100%)
HeiTech Defence System Sdn. Bhd. (100%)
HeiTech Transbiz Sdn. Bhd. (100%)
HeiTech Health Services Sdn. Bhd. (100%)
Integrated Healthcare Solutions Sdn. Bhd. (100%)
HeiTech Global Services Sdn. Bhd. (100%)
HeiTech Academy Sdn. Bhd. (100%)
(formerly known as Padusoft Sdn. Bhd.)
Inter-City MPC (M) Sdn. Bhd. (100%)
Cinix 1 Pty. Ltd. (100%)
HeiTechDatacom Sdn. Bhd. (100%)
Pro-Office Solutions Sdn. Bhd. (100%)
(via Inter-City MPC (M) Sdn. Bhd.)
SUBSIDIARY COMPANIES
Notes:
The companies reflected above are active operating subsidiaries, associated and investment companies.
Information is accurate as at 31 December 2014.
15
www.heitech.com.my
COMPANY
OVERVIEW
We are driven by our passion and
perseverance in order to deliver the
best to our customers
VISION
To become the technology-based
transformational company in
Malaysia and beyond
OUR COMMITMENT
Our passion unites us in our quest for excellence in offering IT
systems and technology services that deliver greater security,
added convenience and peace of mind. By listening to what you
want, we focus our solutions towards meeting your needs and
expectations, in adding even more value to your organisation.
STAFF STRENGTH
MISSION
OUR EDGE
MORE THAN 20 YEARS OF IT
DEVELOPMENT AND IMPLEMENTATION
EXPERIENCE
Managing complexities in public and
private sector projects.
INCUMBENT SOLUTION PROVIDER
16
SOLUTIONS
& SERVICES
As a Global IT System and
Technology Services Provider,
HeiTech has developed a
comprehensive suites of
solutions and services that are
holistic, integrated and cuttingedge, covering the entire life
cycle of systems, infrastructure
and product development.
CORE CAPABILITIES
SYSTEM INTEGRATION & APPLICATION DEVELOPMENT
One size does not fit all and that is why we provide endto-end customised solutions that meet our clients specific
needs. We use a three-pronged approach formulating
strategies that best answer the requirements of our clients,
developing application systems, and finally, integrating
systems of different platforms. Being an end-to-end
solutions provider, we offer complete project implementation
services which includes project management services,
systems management services, deployment services, user
training, and post implementation support services.
IT INFRASTRUCTURE SOLUTIONS
DATA CENTER SERVICES
We own and manage a Tier-IV ready Data Centre
providing world class services of developing, building
and managing data centre facilities for our clients.
The combination of experience and technical
certification such as Information Security Management
System (ISO/IEC 27001: 2005), Quality Management
System (ISO/IEC 9001: 2008) and Information
Technology Service Management System (ISO/IEC
20000-1: 2011) has enabled us to provide the high
standard of qualities that meets the demand of many
organisations in terms of service level, availability,
data integrity and security.
NETWORK SERVICES
As Malaysias largest non-telecommunications service
provider, our network services support multi-protocol
applications into one secured private network. Our
network infrastructure also consist of multiple
telecommunications and trunk carriers. This network
diversity enables us to offer excellent connectivity and
availability to our clients.
We are committed to providing 99.8% network service
availability to our clients, at all times. This commitment
is realised through our centralised monitoring and
around-the-clock customer service.
We also assist our clients to develop, build and
manage network infrastructure and services.
Our set of network services consists of the following
technologies:
Internet Protocol Virtual Private Network (IPVPN)
IP Broadband (DSL)
Optical
Metro Ethernet
3G
4G
CLOUD COMPUTING SERVICES
We offer flexible cloud computing services, tailored to
our clients specific business requirement - from
building a private cloud, hosting cloud infrastructure to
managing shared cloud services. Our cloud computing
services help streamline clients budgets as they are
economically-friendly on capital expenditure, hardware
refresh cycles and hardware-software operations and
maintenance expenses.
Our suite of cloud services consists of: Infrastructure as a Service
Virtual Private Server
Virtual Private Data Centre
Storage as a Service
Disaster Recovery as a Service
Data Protection as a Service
Desktop as a Service
Security as a Service
INDUSTRY FOCUS
17
www.heitech.com.my
HEALTHCARE
NATIONAL SECURITY
PINTAR ID
People Registration & Life Cycle Information
Management
Population Information Exchange System
Immigration Border Control Management
Immigration Travel Document Production and
Issuance
DEFENCE
Stimulated Interactive Maintenance Aid
Integrated Training & Tactical Command Control
System
Security Assessment Services
Weapon Management & Surveillance System
TRANSPORT
ROAD SEGMENT
Road Transport Authority Management System
(RTAMS)
Vehicle Information System Integration (VISI)
Solution
Driver Information System
Bus Integrated System
Centralised Taxi Service System
Automatic Number Plate Recognition
Vehicle Entry Permit System (Road Charging
Solution)
Automated Road Driving Test and Training System
Automatic Fare Collection System
WATER SEGMENT
Terminal Operation System
Single Window Ship Clearance System
Maritime and Port Logistics Solution
AIR SEGMENT
RAIL SEGMENT
Rail Communication System
Train Signalling Solution
FINANCIAL SERVICES
Islamic Integrated Computerised Banking System
Conventional Integrated Computerised Banking System
Insurance & Reinsurance Integrated System (Life,
General, Takaful)
Credit Management Solutions
Investment Management System
VALUE-ADDED BUSINESSES
Our expertise goes far beyond our traditional range of
products and services. We offer our clients a comprehensive
range of value-added services that meet their needs.
ENTERPRISE SOLUTIONS
CONTENT DEVELOPMENT
Web Portal Application Development
Interactive Product Training
Mobile Application Solutions
BUSINESS PROCESS OUTSOURCING
18
BOARD OF
DIRECTORS
From Left to Right:
19
Dato Dr. Mohamed Ariffin Bin Aton, Sulaiman Hew Bin Abdullah,
Dato Haji Ghazali Bin Awang, Dato Mohd. Hilmey Bin Mohd Taib,
Syed Agel Bin Syed Salim, Tan Sri Dato Sri Abi Musa Asaari Bin Mohamed Nor,
Dato Mohd Fadzli Bin Yusof, Siti Shahwana Abdul Hamid (Company Secretary),
*Not in the picture Wan Ainol Zilan Binti Abdul Rahim
20
PROFILE OF
DIRECTORS
21
www.heitech.com.my
appointed as
Padu Berhad
of the Audit
of Chartered
Syed Agel started his career with the Auditor Generals Office in
1969. He served Dunlop Malaysian Industries Berhad in 1974 and
after nine (9) years of service in various capacities, he then joined
Permodalan Nasional Berhad (PNB) in 1983 as the Finance and
Management Audit Manager and has served PNB for seventeen
(17) years. He subsequently retired as a General Manager of
Amanah Saham Nasional Berhad in July 2000. He sits as a Board
member of Inter-City MPC (M) Sdn. Bhd., a subsidiary of HeiTech.
He attended all of the six (6) Board Meetings held during the
financial year ended 31 December 2014.
22
PROFILE OF
DIRECTORS
Tan Sri Dato Sri Abi Musa Asaari Mohamed Nor, aged 65, a
Malaysian, was appointed as an Independent Non-Executive
Director of HeiTech on 17 October 2006. He serves as a member
of Nomination and Remuneration, and Employee Share Option
Scheme (ESOS) Committees.
Tan Sri Dato Sri Abi Musa Asaari attended five (5) Board Meetings
held during the financial year ended 31 December 2014.
Dato Dr. Mohamed Ariffin attended four (4) Board Meetings held
during the financial year ended 31 December 2014.
23
www.heitech.com.my
24
PROFILE OF
GCEO
Harris Ismail, aged 54, a Malaysian, is the Group Chief Executive
Officer of HeiTech Padu Berhad. He holds a Master in Business
Administration from Southern California University, USA.
Prior to joining HeiTech Group in 2000, Harris was involved in
various industries including finance and securities, manufacturing,
construction and educational services. He started his career in
HeiTech Group as Business Strategist in Padusoft, previously a
wholly-owned subsidiary of HeiTech. He was later appointed as
Senior Vice President for Corporate Development of HeiTech in
2005 and was later in charge of the non-core IT business in 2006.
After successfully transformed the Group and improved profit
contribution, he was appointed as CEO of HeiTech e*Business
Solution Sdn. Bhd. in 2009, focusing on the development of the
Homeland Security, Defence, Healthcare and Education sectors.
PROFILE OF
COMPANY SECRETARY
Siti Shahwana, aged 44, a Malaysian, is the Company Secretary
of HeiTech Padu Berhad. She was appointed as Company Secretary
of HeiTech on 29 August 2014. She also serves as Director,
Strategy Development in HeiTech since July 2014. She has over
twenty (20) years of experience and had served both the public
and private sectors in the areas of corporate finance, project
valuation and feasibility, venture capital, market intelligence,
business performance and company secretaryship.
Shahwana graduated with a double degree in Business
Administration (majoring in Finance) from the International Islamic
University Malaysia and The Institute of Chartered Secretaries &
Administration (UK) in 1994.
25
www.heitech.com.my
CHAIRMANS
COUNCIL
7
5
6
4
26
SIGNIFICANT
EVENTS
HeiTech participated in Cyber Security Malaysia
Conference & Showcase
November 2014
27
www.heitech.com.my
HeiTech Appointed as an Official IT provider for
LIMA 15
March 2015
HeiTech clinched Managed Services Provider
of the Year Award by Frost & Sullivans
April 2015
28
SIMPLIFIED SELECTED
FIVE (5) YEARS GROUP REVIEW
REVENUE
Network Services Fees
System Application and Development
Sales of Hardware and Software
Disaster Recovery and Facility
Management Services
Imaging and Record Management
Services
Maintenance of Hardware,
Software and Application
Bulk Mailing Charges
Television Content Services
Others
PROFITABILITY
Profit Before Tax (RM000)
Profit Before Tax Margin (%)
Profit After Taxation (RM000)
Profit Attributable to Shareholders
(RM000)
Earnings per Share (RM)
2010
RM000
2011
RM000
2012
RM000
2013
RM000
2014
RM000
92,767
51,330
129,834
84,442
48,355
39,595
92,662
77,822
63,592
84,672
65,081
75,018
74,642
61,987
139,795
44,302
45,972
47,991
35,330
30,094
182
76,427
23,756
14,781
531
90,161
28,226
1,373
83,309
29,152
1,001
116,120
30,269
7,328
116,484
33,587
4,870
433,910
338,124
395,529
413,818
461,459
2010
2011
2012
2013
2014
17,203
4.0%
10,341
3,357
1.0%
6,060
7,936
2.0%
4,840
(31,438)
-7.6%
(33,349)
(9,947)
-2.2%
(10,423)
8,892
0.08***
6,586
0.04****
3,742
0.045****
(30,826)
-0.32****
(14,056)
-0.10****
*** Based on the weighted average of 100,716,600 ordinary shares of RM1.00 each
**** Based on the weighted average of 101,225,000 ordinary shares of RM1.00 each
ASSETS EMPLOYED
Total Assets (RM000)
Fixed Assets (RM000)
Net Current Assets (RM000)
Current Ratio
Gearing Ratio
Shareholders Fund (RM000)
Net Tangible Assets per Share (RM)
Share Capital (RM000)
+++ Based on paid-up capital of RM100,716,600
++++ Based on paid-up capital of RM101,225,000
2010
2011
2012
2013
2014
489,166
210,827
128,167
1.85
53%
202,856
1.95+++
100,716
508,791
219,472
92,334
1.47
54%
202,855
1.89++++
101,225
528,521
216,236
95,597
1.44
53%
206,547
1.86++++
101,225
480,287
193,084
96,489
1.51
60%
175,672
1.53++++
101,225
519,395
173,034
56,054
1.19
57%
160,958
1.38++++
101,225
29
www.heitech.com.my
Total Revenue
(RM'000)
(RM'000)
433,910
338,124
395,529
413,818
461,459
500,000
750,000
400,000
600,000
300,000
450,000
200,000
300,000
100,000
150,000
489,166
508,791
2010
2011
528,521
480,287
519,395
2013
2014
154,456
139,442
2013
2014
0
2010
2011
2012
2013
2014
2012
(RM'000)
(RM'000)
17,203
3,357
7,936
(31,438)
(9,947)
20,000
250,000
10,000
200,000
150,000
-10,000
100,000
-20,000
50,000
-30,000
196,119
191,723
2010
2011
188,711
0
2010
2011
2012
2013
2014
2012
Shareholders' Fund
(RM'000)
(RM'000)
8,892
6,586
3,742
(30,826)
(14,056)
15,000
300,000
3,000
250,000
-9,000
150,000
-21,000
100,000
-33,000
50,000
-45,000
202,856
202,855
2010
2011
206,547
175,672
160,958
2013
2014
0
2010
2011
2012
2013
2014
2012
30
REVIEW OF
OPERATIONS
The business of HeiTech Padu Berhad (HeiTech) is the realisation
of a given potential to its many possibilities. Leveraging on more
than a decade of decent track record, experience and extensive
knowledge of the local IT industry, HeiTech still stands as one of
the nations major IT players. Being Malaysias technology based
conglomerate, HeiTech today is one of Malaysias biggest
homegrown IT Company.
At HeiTech, we recognise theres greater resilience
required to weather the business landscape; shaping for
greater specialisation in key market segments, expansion
of products and services, building international business
foundation and enabling business transformation through
technology as key strategies. The business world is a
dynamic space: what works today may not be relevant
tomorrow. With ICT, the pace is accelerated even more.
In todays market environment, there is no choice but to
move fast and be agile.
31
www.heitech.com.my
Revenue (RM000)
2010
2011
2012
2013
2014
433,910
338,124
395,529
413,818
461,459
In 2014, the Groups revenue increased by RM47.6 million or 12% to RM461.4 million as compared to RM413.8
million in 2013. The increase is mainly due to the sale of hardware and software which improved by 86% in 2014 as
compared to 2013.
32
REVIEW OF
OPERATIONS
2010
3,357
2011
7,936
2012
(31,438)
2013
2014
(9,947)
SECTORIAL BUSINESS
Sectorial Revenue Contribution - Public vs Private Sector Contribution
21%
34%
2010
79%
Public
2011
66%
38%
2012
62%
37%
2013
63%
37%
2014
63%
Private
33
www.heitech.com.my
QUALITY OF REVENUE
Quality of Revenue Contribution Recurring vs Non-recurring Contribution (RM million)
237
2010
196
249
2011
89
253
2012
142
147
266
2013
255
2014
Recurring
207
Non-Recurring
45%
2010
26%
55%
Non-Recurring
2011
74%
Recurring
36%
2012
64%
36%
2013
64%
45%
2014
55%
34
REVIEW OF
OPERATIONS
2012
258
137
178
130
30
225
141
30
256
2013
120
38
318
2014
105
38
System Integration
Managed Services
Others
130
76
51
40
2011
90
48
64
2012
78
83
75
2013
65
2014
Trading
62
Maintenance
116
116
140
35
www.heitech.com.my
MANAGED SERVICES
Managed Services Revenue Analysis (RM million)
0.2
44
2010
93
46
2011
84
48
2012
93
35
2013
30
2014
Imaging
Disaster Recovery
85
75
Network Services
CORPORATE
RESPONSIBILITY
2014 annual report
36
37
www.heitech.com.my
38
CORPORATE
RESPONSIBILITY
39
www.heitech.com.my
AUDIT COMMITTEE
REPORT
The Board of Directors of HeiTech Padu Berhad is pleased to present the
Report of the Audit Committee (Committee) for the financial year ended
31 December 2014.
COMPOSITION OF MEMBERS
The Committee comprises of Non-Executive Directors of the Company, the majority of whom are Independent. The
composition of the Committee includes members of the Malaysian Institute of Accountants (MIA) as prescribed in the
Accountants Act 1967.
The Committee comprises of the following members:
Name of Committee Members
Status of Directorship
Compliance with:
Listing Requirement of the Bursa Malaysia
Securities Berhad (BMSB);
Securities Commission Policies and Guidelines
on Issue/Offer of Securities; and
Accountability and audit requirements of the
Malaysian Code on Corporate Governance.
Financial Reporting
40
AUDIT COMMITTEE
REPORT
b.
Internal Audit
Review the Internal Audit program and results
of the Internal Audit activities, and ensure
appropriate actions are taken on the
recommendations of the Internal Auditor;
Review the adequacy of the Internal Audit
function, plan, scope, competency and
resources, and that it has necessary authority
to carry out its work;
Review the performance of the Internal Audit
function;
Approve the appointment and termination of
Head of the Internal Audit; and
Provide opportunity for internal audit staff
members who have resigned to submit their
reason.
c.
External Audit
Discuss the nature and scope of the audit
with the External Auditor prior to the
commencement of audit;
Discuss issues and observations arising
from the interim and final audits, and any
matters the auditors may wish to discuss
without the attendance of management,
whenever deemed necessary;
Review the External Auditors Management
Letter and management response; and
Recommend the nomination or re-appointment
of the External Auditors, the audit fee and
termination.
d.
e.
Other Matters
f.
41
www.heitech.com.my
During the financial year ended 31 December 2014, the Committee met eight (8) times. The attendance of the
Committee members are as follows:
Members
Status
8/8
8/8
8/8
SUMMARY OF ACTIVITIES
b.
Attendance
Internal Audit
i.
ii.
c.
v.
i.
ii.
Financial Reporting
i.
External Audit
42
AUDIT COMMITTEE
REPORT
b.
f.
j.
43
www.heitech.com.my
STATEMENT OF
CORPORATE GOVERNANCE
INTRODUCTION
The Board
44
STATEMENT OF
CORPORATE GOVERNANCE
Whistleblowing Policy
A whistleblowing policy has been adopted in order to ensure that concerns or wrongdoings in relation to the Group
may be raised. The Audit Committee has been tasked to facilitate the investigation and proposed the appropriate
action to be taken.
Sustainability
The Board recognises the importance of sustainability and its increasing relevance to the Groups business activities.
The Board is committed towards implementing sustainable practices in order to achieve the right balance between the
needs of the wider community and the requirements of shareholders, stakeholders and business growth.
Board of Directors Meeting
The Board meets on a regular and scheduled basis, at least four (4) times a year, once every quarter, to review
corporate strategies, operations and the performance of the Strategic Business Group as well as the Operating
Companies within the Group. Additional meetings are held as and when required or the urgency of the matter warrants
such an action to be taken. During the financial year under review, the Board met six (6) times and the details of
the attendance of the Board members are set out as follows:
No
74th
75th
76th
77th
*SP1
*SP2
27
Feb
28
May
29
Aug
26
Nov
17
Apr
18
Sep
Name of Directors
Designation
Chairman
6/6
5/6
6/6
5/6
Tuan Syed
Syed Salim
bin
Non-Independent
Non-Executive
Director
6/6
Non-Independent
Non-Executive
Director
4/6
6/6
6/6
Agel
Attendance
45
www.heitech.com.my
Board Charter
46
STATEMENT OF
CORPORATE GOVERNANCE
The Board has proposed for the retention of the two (2)
Independent Non-Executive Directors who will be reaching
the ten (10) year-term as follows:
1. Dato Haji Ghazali bin Awang; and
2. Dato Mohd Fadzli bin Yusof
Directors Training
Due to the ever increasing complexities in doing business,
Directors are expected to upgrade their skill sets and
keep themselves abreast with the developments in the
business environment as well as with any new relevant
regulatory and statutory requirements to maximise their
effectiveness in serving the interest of the Group.
During the financial year 2014, the Directors had attended
various training programmes relevant to their duties and
responsibilities. Among the trainings they had attended
are:
Personal Data Protection Act 2010
Launch of Guidelines for Listed Companies
MIA By-Laws : Highlights on Recent Amendments
DIRECTORS REMUNERATION
In complying with Paragraph 7.23 of the LR of Bursa Malaysia Berhad, the details of the Directors remuneration for the
financial year ended 31 December 2014, are as follows:
Fees
(RM)
Executive Directors
Non-Executive Directors
Basic
Salary
(RM)
Bonus
(RM)
Benefits in
Other
Kind Emoluments
(RM)
(RM)
Total
(RM)
1,045,000
55,989
88,000
1,188,989
Executive
Non-Executive
0 100,000
100,001 300,000
300,001 1,000,000
47
www.heitech.com.my
Board Committees
The Board has established the following Board Committees
to assist the Board in discharging its duties:
Audit Committee;
Nomination Committee and Remuneration Committee;
Employee Share Option Scheme (ESOS) Committee;
Voluntary Separation Scheme (VSS) Committee;
Risk Management Committee.
a) Audit Committee
The present members of the Audit Committee are:
Members
Status
Attendance
8/8
8/8
8/8
Details of the composition, terms of reference, and the Audit Committee Report are set out on pages 39 to 42
of this Annual Report.
b) Nomination Committee and Remuneration Committee
Members
Status
Attendance
Independent Non-Executive
1/1
Independent Non-Executive
Independent Non-Executive
1/1
The Nomination and Remuneration Committee (NCRC) is empowered to review and make recommendations to
the Board in identifying suitable candidates for Directorship. The NCRC considers various aspects which include
the competencies, commitment, contribution and performance of a candidate. On top of that, the NC also
facilitates the Boards induction of new members and training programmes for the Directors.
48
STATEMENT OF
CORPORATE GOVERNANCE
The other role of the NCRC is to consider and recommend to the Board the remuneration schemes for the
Directors and the CEO. The NCRC will regularly review and compare the scheme which is benchmarked against
the industry. Independent directors may not receive, directly or indirectly, any consulting, advisory or other
compensatory fees from the Company.
c) Employee Share Option Scheme (ESOS) Committee
Members
Status
Independent Non-Executive
Tan Sri Dato Sri Abi Musa Asaari bin Mohamed Nor
Independent Non-Executive
This committee was set up to assist the Board in the proper implementation of the ESOS scheme under its ByLaws and Guidelines. This is undertaken with the proper execution of the ESOS, within the defined terms of
reference and also with the establishment, amendment and resolution of rules and regulations relating to the
scheme and its administration.
d) Voluntary Separation Scheme (VSS) Committee
Members
Status
Chairman
Independent Non-Executive
Non-Independent Non-Executive
The Committee assists the Board in the administration and execution of the VSS scheme for the Group, if such
a need arises.
e) Risk Management Committee (RMC)
Members
Status
Attendance
Independent Non-Executive
4/4
Non-Independent Non-Executive
3/4
4/4
The RMC works closely with the Central Risk Review Committee (CRRC) to deliberate on the corporate and
operational risks of the Group. The GRMC implements the Risk Management Framework and Policy for the Group,
assesses potential risks and monitors the risk register and reports the summary of risk management issues and
initiatives to the RMC. The half yearly report is then shared with the Board Members for information and feedback.
49
www.heitech.com.my
SHAREHOLDERS
Corporate Disclosure
Financial Reporting
External Auditors
The management maintains a close and transparent
relationship with the External Auditors in seeking
professional advice and ensuring compliance with the
applicable approved accounting standards.
The role of the Audit Committee in relation to the External
Auditors is found in the Audit Committee Report is on
page 40 of this Annual Report.
Risk Management and Internal Control
The Board of Directors recognise the importance of having
sound internal controls and risk management practices to
good corporate governance. The Board affirms its overall
responsibility for the Groups systems of internal control
and risk management, and for reviewing the adequacy and
effectiveness of the same from time to time. It is to be
noted that such systems are designed to identify, evaluate
and manage significant risk of the Group.
The Board is assisted by Central Review Risk Committee
(CRRC) in the implementation of risk management
processes within the Group. A Risk Management
Committee, has also been set up and entrusted with the
role of identifying business risks and in ensuring the
implementation of the systems will be done in an
appropriate manner.
The statement of the Company on risk management and
internal control system is set out in the Statement on
Risk Management and Internal Control on pages 51 to 55
in this Annual Report.
50
STATEMENT OF
CORPORATE GOVERNANCE
v) Profit Guarantee
51
www.heitech.com.my
BOARD RESPONSIBILITY
52
53
www.heitech.com.my
54
55
www.heitech.com.my
j)
56
DISCLOSURE TO
BURSA MALAYSIA
No.
Date
Announcement
1.
23 April 2015
2.
10 Apr 2015
3.
01 Apr 2015
4.
27 Feb 2015
Quarterly rpt on consolidated results for the financial period ended 31/12/2014
5.
26 Feb 2015
Acceptance of The Letter of Award for The Maintenance of the Computer System of Jabatan
Pengangkutan Jalan (Road Transport Department)
6.
26 Nov 2014
Quarterly rpt on consolidated results for the financial period ended 30/9/2014
7.
29 Oct 2014
Acceptance of Letter of Award for The Appointment of HeiTech Padu Berhad by Jabatan
Pengangkutan Jalan (Road Transport Department) for The Wide Area Network (WAN)
Connectivity and Services.
8.
26 Sep 2014
Acceptance of The Letter of Award for The Extension of Contract Period for The Provision
of Maintenance Services for The Main Business ICT System for Jabatan Pendaftaran
Negara (National Registration Department)
9.
18 Sep 2014
Acceptance of The Letter of Award for The Appointment of HeiTech Padu Berhad, on a
direct negotiation basis, for The Mainframe Capacity Upgrade of Jabatan Pengangkutan
Jalan (Road Transport Department) from The Present IBM Z10-402 To IBM Zec12-503
10.
29 Aug 2014
11.
29 Aug 2014
Quarterly rpt on consolidated results for the financial period ended 30/6/2014
12.
25 Jul 2014
Receipt of the Letter of Acceptance for the Maintenance and Services for MyIMMS
Application System at Jabatan Imigresen Malaysia (JIM) (amended announcement)
13.
24 Jul 2014
Receipt of the Letter of Acceptance for the Maintenance and Services for MyIMMS
Application System at Jabatan Imigresen Malaysia (JIM)
14.
23 Jun 2014
15.
28 May 2014
Quarterly rpt on consolidated results for the financial period ended 31/3/2014
16.
27 May 2014
17.
27 May 2014
18.
27 May 2014
FINANCIAL
STATEMENTS
58
59
Directors Report
63
Statement by Directors
63
Statutory Declaration
64
66
68
70
72
75
58
STATEMENT OF
DIRECTORS RESPONSIBILITIES
Under the Companies Act 1965, the Directors are required to prepare financial statements, which disclose a true and
fair view of the state of affairs of the Group at the end of each financial year and of their results and cashflow for
the year then ended.
The Directors consider that in preparing the financial statements:
the Group applied appropriate and consistent accounting policies;
reasonable and prudent judgments and estimates were made; and
all applicable MASB Approved Accounting Standards in Malaysia For Entities Other Than Private Entities have been
adhered with.
The Directors are responsible for ensuring that the Group and Company keep proper accounting records, which disclose
with reasonable accuracy at any time the financial position of the Group and to enable them to ensure that the
financial statements comply with the Companies Act 1965.
The Directors have general responsibilities for taking such steps that are reasonably available to them to safeguard
the assets of the Group and the Company and to prevent and detect fraud and other irregularities
59
www.heitech.com.my
DIRECTORS
REPORT
The directors hereby present their report together with the audited financial statements of the Group and of the
Company for the financial year ended 31 December 2014.
PRINCIPAL ACTIVITIES
The principal activities of the Company are the provision of systems integration, network related services, data centre
management, disaster recovery services and other information technology related services. Under the Communications
and Multimedia Act (CMA) 1998 Framework, the provision of network related services and internet data centre services
are licensed as Network Services Provider Individual License (NSP (i)) and Application Service Provider Class License
(ASP (c)) respectively.
The principal activities of the subsidiaries are described in Note 15 to the financial statements.
There have been no significant changes in the nature of the principal activities during the financial year.
RESULTS
Group
RM000
Company
RM000
(10,423)
(8,042)
(10,474)
51
(8,042)
(10,423)
(8,042)
There were no material transfers to or from reserves or provisions during the financial year other than as disclosed
in the financial statements.
In the opinion of the directors, the results of the operations of the Group and of the Company during the financial
year were not substantially affected by any item, transaction or event of a material and unusual nature.
DIVIDENDS
The directors do not recommend the payment of any dividend for the current financial year.
DIRECTORS
The names of the directors of the Company in office since the date of the last report and at the date of this report are:
Dato Mohd Hilmey bin Mohd Taib
Tuan Syed Agel bin Syed Salim
Dato Haji Ghazali bin Awang
Dato Mohd. Fadzli bin Yusof
Tan Sri Abi Musa Asaari bin Mohamed Nor
Dato Dr. Mohamed Ariffin bin Aton
Sulaiman Hew bin Abdullah
Wan Ainol Zilan binti Abdul Rahim
60
DIRECTORS
REPORT
In accordance with Article 82 of the Companys Articles of Association, Dato Dr. Mohamed Ariffin bin Aton, Sulaiman
Hew bin Abdullah and Wan Ainol Zilan binti Abdul Rahim retire from the Board of Directors by rotation at the
forthcoming Annual General Meeting. Dato Dr. Mohamed Ariffin bin Aton, Sulaiman Hew bin Abdullah and Wan Ainol
Zilan binti Abdul Rahim, being eligible, offer themselves for re-election.
DIRECTORS BENEFITS
Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which
the Company was a party, whereby the directors might acquire benefits by means of the acquisition of shares in or
debentures of the Company or any other body corporate.
Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other
than benefits included in the aggregate amount of emoluments received or due and receivable by the directors or the
fixed salary of a full-time employee of the Company as shown in Note 7 to the financial statements) by reason of a
contract made by the Company or a related corporation with any 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.
DIRECTORS INTERESTS
According to the register of directors shareholdings, the interests of directors in office at the end of the financial year
in shares and options over shares in the Company and its related corporations during the financial year were as follows:
Number of ordinary shares of RM1.00 each
1 January
Bought
Sold 31 December
2014
2014
The Company
Direct interest
Dato Mohd Hilmey bin Mohd Taib
Tuan Syed Agel bin Syed Salim
7,820,184
12,500
7,820,184
12,500
30,521,028
30,521,028
61
www.heitech.com.my
any charge on the assets of the Group and of the Company which has arisen since the end of the financial
year which secures the liabilities of any other person; or
(ii) any contingent liability of the Group and of the Company which has arisen since the end of the financial
year.
62
DIRECTORS
REPORT
no contingent liability or other liability has become enforceable or is likely to become enforceable within the
period of twelve months after the end of the financial year which will or may affect the ability of the Group
and of the Company to meet their obligations as and when they fall due; and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end
of the financial year and the date of this report which is likely to affect substantially the results of the
operations of the Group and of the Company for the financial year in which this report is made.
AUDITORS
The auditors, Hanafiah Raslan & Mohamad, have expressed their willingness to continue in office.
Signed on behalf of the Board in accordance with a resolution of the directors dated 20 April 2015.
Dato Mohd Hilmey bin Mohd Taib
63
www.heitech.com.my
STATEMENT BY
DIRECTORS
We, Dato Mohd Hilmey bin Mohd Taib and Dato Haji Ghazali bin Awang, being two of the directors of HeiTech Padu
Berhad, do hereby state that, in the opinion of the directors, the accompanying financial statements set out on pages
66 to 139 are drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting
Standards and the requirements of the Companies Act 1965 in Malaysia so as to give a true and fair view of the
financial position of the Group and of the Company as at 31 December 2014 and of their financial performance and
cash flows for the year then ended.
The information set out in Note 37 to the financial statements have been prepared in accordance with the Guidance
on Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure
Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of
Accountants.
Signed on behalf of the Board in accordance with a resolution of the directors dated 20 April 2015.
Dato Mohd Hilmey bin Mohd Taib
STATUTORY
DECLARATION
I, Ahmad Nasrul Hakim bin Mohd Zaini, being the officer primarily responsible for the financial management of HeiTech
Padu Berhad, do solemnly and sincerely declare that the accompanying financial statements set out on pages 66 to
139 are in my opinion, correct and I make this solemn declaration conscientiously believing the same to be true and
by virtue of the provisions of the Statutory Declarations Act 1960.
Before me,
64
INDEPENDENT
AUDITORS REPORT
65
www.heitech.com.my
OTHER MATTERS
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the
Companies Act 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for
the content of this report.
Hanafiah Raslan & Mohamad
AF: 0002
Chartered Accountants
Kuala Lumpur
20 April 2015
66
STATEMENTS OF
COMPREHENSIVE INCOME
For the financial year ended 31 December 2014
Note
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
461,459
7,247
(99,408)
(97,423)
(47,024)
(57,885)
(20,359)
(50,674)
(11,514)
(86,969)
(7,389)
(8)
413,818
9,901
(96,423)
(63,215)
(68,333)
(70,211)
(10,777)
(53,462)
(8,797)
(77,328)
(7,263)
652
408,573
12,209
(24,217)
(86,407)
(73,968)
(106,631)
(74,065)
(8,559)
(47,792)
(6,601)
356,110
14,357
(27,164)
(58,691)
(84,175)
(102,667)
(65,869)
(6,955)
(64,022)
(6,578)
(9,947)
(476)
(31,438)
(1,613)
(7,458)
(584)
(45,654)
(218)
(10,423)
(33,051)
(8,042)
(45,872)
Continuing operations
Revenue
Other income
Employee benefits expense
Purchase of hardware and software
Lease line rental
Maintenance costs
Bulk mailing processing charges
Project implementation costs
Depreciation
Other expenses
Finance costs
Share of results of associates
4
5
6
9
10
9
8
Discontinued operation
Loss for the year from discontinued
operation, net of tax
Loss for the year
11
(10,423)
(298)
(33,349)
(8,042)
(45,872)
67
www.heitech.com.my
Note
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
(3,633)
340
2,183
340
(3,633)
2,523
340
(14,056)
(30,826)
(8,042)
(45,532)
(10,474)
51
(32,579)
(164)
(606)
(8,042)
(45,872)
(10,423)
(33,349)
(8,042)
(45,872)
(14,714)
658
(30,875)
49
(8,042)
(45,532)
(14,056)
(30,826)
(8,042)
(45,532)
(10.35)
(32.35)
12
Note
Loss per share from continuing operations attributable to
equity holders of the parent (sen per share):
Basic/diluted
12
12
Group
2014
(10.35)
2013
(32.19)
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
(0.16)
68
STATEMENTS OF
FINANCIAL POSITION
As at 31 December 2014
Note
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
Assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments in subsidiaries
Investments in associates
Available-for-sale financial assets
Lease receivable
Deferred tax assets
73,733
27,187
4,089
6,812
61,200
13
74,549
25,600
4,097
6,312
81,942
584
55,950
153
42,932
6,148
61,200
55,100
240
42,932
6,148
81,942
584
173,034
193,084
166,383
186,946
1,101
102,848
100,165
138,592
3,655
1,442
154,626
91,010
36,892
3,233
118,298
100,165
129,235
2,973
141,443
94,362
29,721
2,427
346,361
287,203
350,671
267,953
519,395
480,287
517,054
454,899
187,629
101,890
788
84,692
104,180
1,842
185,102
131,905
81,693
120,044
290,307
190,714
317,007
201,737
56,054
96,489
33,664
66,216
1,314
61,145
1,491
108,026
54,314
99,387
62,459
109,517
54,314
99,387
Total liabilities
352,766
300,231
371,321
301,124
Net assets
166,629
180,056
145,733
153,775
Current assets
Inventories
Trade and other receivables
Other current assets
Cash and bank balances
Tax recoverable
13
14
15
16
17
18
19
20
21
22
24
Total assets
25
26
19
25
69
www.heitech.com.my
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
101,225
16,526
46,783
(3,576)
101,225
16,526
57,257
664
101,225
16,526
27,982
101,225
16,526
36,024
Non-controlling interests
160,958
5,671
175,672
4,384
145,733
153,775
Total equity
166,629
180,056
145,733
153,775
519,395
480,287
517,054
454,899
Note
27
27
28
29
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
70
STATEMENTS OF
CHANGES IN EQUITY
For the year ended 31 December 2014
Non-distributable
Fair
Foreign
value
Total
Share currency
Share
Share Retained
other
options translation adjustment
reserve
reserve
capital premium earnings reserves reserves
(Note 27) (Note 27) (Note 28) (Note 29) (Note 29) (Note 29) (Note 29)
RM000
RM000
RM000
RM000
RM000
RM000
RM000
Total
equity
attributable to
owners
Nonof the controlling
parent Interests
RM000
RM000
Total
equity
RM000
101,225
16,526
175,672
180,056
(10,474)
(4,240)
(4,240)
(10,474)
(4,240)
51
607
(10,423)
(3,633)
(10,474)
(4,240)
(4,240)
(14,714)
658
(14,056)
629
629
629
629
As at 31 December 2014
101,225
16,526
46,783
As at 1 January 2013
101,225
16,526
88,785
Group
As at 1 January 2014
57,257
664
664
4,384
(3,576)
160,958
5,671
166,629
11
1,215
(864)
(340)
206,547
10,244
216,791
(32,743)
1,528
1,528
(32,743)
1,528
(606)
655
(33,349)
2,183
(32,743)
1,528
1,528
(31,215)
49
(31,166)
340
340
340
340
(32,743)
1,868
1,528
340
(30,875)
49
(30,826)
1,215
(1,215)
(1,215)
(168)
(5,741)
(168)
(5,741)
1,215
(1,215)
(1,215)
(5,909)
(5,909)
101,225
16,526
57,257
664
664
175,672
4,384
180,056
As at 31 December 2013
(3,576)
71
www.heitech.com.my
Non-distributable
Distributable
Non-distributable
Fair
value
Share
options adjustment
reserve
reserves
(Note 29) (Note 29)
RM000
RM000
Total
other
reserves
(Note 29)
RM000
Share
capital
(Note 27)
RM000
Share
premium
(Note 27)
RM000
Retained
earnings
(Note 28)
RM000
101,225
16,526
36,024
(8,042)
(8,042)
(8,042)
(8,042)
As at 31 December 2014
101,225
16,526
27,982
145,733
As at 1 January 2013
101,225
16,526
80,681
1,215
(340)
875
199,307
(45,872)
(45,872)
(45,872)
340
340
340
(45,872)
340
340
(45,532)
1,215
(1,215)
(1,215)
1,215
(1,215)
(1,215)
101,225
16,526
36,024
Total
equity
RM000
Company
As at 1 January 2014
As at 31 December 2013
153,775
153,775
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
72
STATEMENTS OF
CASH FLOWS
For the financial year ended 31 December 2014
Note
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
Operating activities
Loss before tax from continuing operations
Loss before tax from discontinued
operation
(9,947)
(9,947)
(31,736)
(7,458)
(45,654)
(23)
42
(1,382)
(400)
(97)
(474)
(3,585)
(1,341)
(400)
(49)
(423)
(3,585)
9
9
5
5
(31,438)
(298)
(7,458)
(45,654)
339
339
7,389
7,263
4
6,601
6,578
13,007
9
9
11,514
8,797
11
8,559
6,955
9
9
(1,703)
(45)
(1,298)
(100)
(1,261)
(40)
(1,297)
(100)
9
9
9
9
9
9
1,303
1,039
694
2,188
8
5,969
7,963
1,878
87
2,072
(652)
1,032
1,039
87
2,195
7,644
1,878
87
3,020
33,631
28,177
14,276
23,242
73
www.heitech.com.my
Note
Group
2014
RM000
23,684
2013
RM000
(3,559)
Company
2014
2013
RM000
RM000
6,818
(22,412)
377
26,345
(23,056)
43,517
(4,804)
31,095
(28,137)
(2,290)
7,747
11,861
19,730
43,308
66,992
(7,389)
(558)
11,413
7,854
(7,267)
(138)
50,574
57,392
(6,601)
(1,545)
22,688
276
(6,578)
59,045
49,246
(6,302)
(9,409)
1,341
(6,616)
423
1,345
Decrease in inventories
Decrease in trade and other receivables
Increase in other current assets
(Decrease)/increase in trade and
other payables
449
Investing activities
Purchase of property, plant and equipment
Interest received
Net dividends received
Proceeds from disposal of property,
plant and equipment
Proceeds from disposal of available-for-sale
financial assets
Proceeds from disposal of subsidiaries
Software and deferred development costs
incurred
Net cash outflow on acquisition of
subsidiaries
Purchase of available-for-sale financial
assets
Net cash flows (used in)/from investing
activities
13
14
(10,539)
1,382
(7,340)
474
1,345
53
125
49
7,328
244
7,328
300
(6,151)
(2,721)
(7,984)
(3,840)
(500)
(13,444)
(11,959)
(8,068)
108
74
Statements of
cash flows
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
93,167
(20,016)
(29,444)
93,167
(18,700)
(35,555)
(4,667)
(3,893)
(3,947)
(3,606)
(95,579)
558
(93,542)
229
(27,095)
(32,779)
(23,022)
(38,932)
18,506
(44,289)
18,156
(45,126)
43
(26,773)
3,387
14,129
(32,699)
12,427
(26,773)
(14,543)
(32,699)
Note
Financing activities
24
(8,224)
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
75
www.heitech.com.my
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2014
1. CORPORATE INFORMATION
The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on Bursa
Malaysia Securities Berhad. The registered office and the principal place of business of the Company is located
at Level 15, HeiTech Village, Persiaran Kewajipan, USJ 1, UEP Subang Jaya, 47600 Selangor Darul Ehsan.
The principal activities of the Company are the provision of systems integration, network related services, data
centre management, disaster recovery services and other information technology related services. Under the
Communications and Multimedia Act (CMA) 1998 Framework, the provision of network related services and
internet data centre services are licensed as Network Services Provider Individual License (NSP (i)) and Application
Service Provider Class License (ASP (c)) respectively.
The principal activities of the subsidiaries are described in Note 15 to the financial statements.
There have been no significant changes in the nature of these activities during the financial year.
The financial statements of the Group and of the Company have been prepared in accordance with Malaysian
Financial Reporting Standards (MFRS), International Financial Reporting Standards (IFRS) and the
requirements of the Companies Act 1965 in Malaysia.
The financial statements have been prepared on a historical cost basis except as disclosed in the accounting
policies below.
The financial statements are presented in Ringgit Malaysia (RM) and all values are rounded to the nearest
thousand (RM000), except when otherwise indicated.
The accounting policies adopted are consistent with those of the previous financial year except as follows:
On 1 January 2014, the Company adopted the following Amendments and IC Interpretation mandatory for
annual financial periods beginning on or after 1 January 2014.
Description
1 January 2014
1 January 2014
1 January 2014
1 January 2014
IC Interpretation 21 Levies
1 January 2014
Adoption of the above Amendments and IC Interpretation do not have any material impact on the Groups
and the Companys financial statements.
76
Notes to the
financial statements
31 December 2014
The standards and interpretations that are issued but not yet effective up to the date of issuance of the
Groups and the Companys financial statements are disclosed below. The Group and the Company intend
to adopt these standards, if applicable, when they become effective.
Description
1 July 2014
1 July 2014
1 July 2014
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2017
1 January 2018
The Directors of the Company do not anticipate the application of the standards and interpretations will have
a material impact on the Groups financial statements except as discussed below:
Amendments to MFRS 101: Disclosure Initiatives
The amendments to MFRS 101 include narrow-focus improvements in the following five areas:
Materiality
Disaggregation and subtotals
Notes structure
Disclosure of accounting policies
Presentation of items of other comprehensive income arising from equity accounted investments
The Directors of the Company do not anticipate that the application of these amendments will have a
material impact on the Groups and the Companys financial statements.
77
www.heitech.com.my
The amendments will allow entities to use the equity method to account for investments in subsidiaries,
joint ventures and associate in their separate financial statements. Entities already applying MFRS and
electing to change to the equity method in its separate financial statements will have to apply this change
retrospectively. For first- time adopters of MFRS electing to use the equity method in its separate financial
statements, they will be required to apply this method from the date of transition to MFRS. The amendments
are effective for annual periods beginning on or after 1 January 2016, with early adoption permitted. These
amendments will not have any impact on the Groups and the Companys financial statements.
MFRS 15 Revenue from Contracts with Customers
MFRS 15 establishes a new five-step models that will apply to revenue arising from contracts with customers.
MFRS 15 will supersede the current revenue recognition guidance including MFR 118 Revenue, MFRS 111
Construction Contracts and the related interpretations when it becomes effective.
The core principle of MFRS 15 is that an entity should recognise revenue which depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services.
Under MFRS 15, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e when
control of the goods or services underlying the particular performance obligation is transferred to the
customer.
Either a full or modified retrospective application is required for annual periods beginning on or after 1
January 2017 with early adoption permitted. The Directors anticipate that the application of MFRS 15 will
have a material impact on the amounts reported and disclosures made in the Groups and the Companys
financial statements. The Group is currently assessing the impact of MFRS 15 and plans to adopt the new
standard on the required effective date.
MFRS 9 Financial Instruments
In November 2014, MASB issued the final version of MFRS 9 Financial Instruments which reflects all phases
of the financial instruments project and replaces MFRS 139 Financial Instruments: Recognition and
Measurement and all previous versions of MFRS 9. The standard introduces new requirements for
classification and measurement, impairment and hedge accounting. MFRS 9 is effective for annual periods
beginning on or after 1 January 2018, with early application permitted. Retrospective application is required,
but comparative information is not compulsory. The adoption of MFRS 9 will have an effect on the
classification and measurement of the Groups financial assets, but no impact on the classification and
measurement of the Groups financial liabilities.
78
Notes to the
financial statements
31 December 2014
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries
as at 31 December 2014. The financial statements of the subsidiaries used in the preparation of the
consolidated financial statements are prepared for the same reporting date as the Company. Consistent
accounting policies are applied to like transactions and events in similar circumstances.
The Company controls an investee if, and only if, the Company has of all the following:
(i)
Power over the investee (i.e existing rights that give it the current ability to direct the relevant activities
of the investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affect its returns.
When the Company has less than a majority of the voting rights of an investee, the Company considers the
following in assessing whether it has power over the investee:
(i) The size of the Companys holding of voting rights relative to the size and dispersion of holdings of
the other vote holders;
(ii) Potential voting rights held by the Company, other vote holders or other parties;
(iii) Rights arising from other contractual arrangements; and
(iv) Any additional facts and circumstances that indicate that the Company has, or does not have, the
current ability to direct the relevant activities at the time that decisions need to be made, including
voting patterns at previous shareholders meetings.
Subsidiaries are consolidated when the Company obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary. All intra-group balances, income and expenses and unrealised gains
and losses resulting from intra-group transactions are eliminated in full.
Losses within a subsidiary are attributed to the non-controlling interests even if that results in a deficit
balance.
Changes in the Groups ownership interests in subsidiaries that do not result in the Group losing control
over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Groups interests
and the non-controlling interests are adjusted to reflect the changes in their relative interests in the
subsidiaries. The resulting difference is recognised directly in equity and attributed to owners of the
Company.
When the Group loses control of a subsidiary, a gain or loss calculated as the difference between (i) the
aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii)
the previous carrying amount of the assets and liabilities of the subsidiary and any non-controlling interest,
is recognised in profit or loss. The subsidiarys cumulative gain or loss which has been recognised in other
comprehensive income and accumulated in equity are reclassified to profit or loss or where applicable,
transferred directly to retained earnings. The fair value of any investment retained in the former subsidiary
at the date control is lost is regarded as the cost on initial recognition of the investment.
79
www.heitech.com.my
are
and
Any
the
80
Notes to the
financial statements
31 December 2014
81
www.heitech.com.my
82
Notes to the
financial statements
31 December 2014
83
www.heitech.com.my
2.10 Subsidiaries
A subsidiary is an entity over which the Group has:
(i) Power over the investee (i.e existing rights that give it the current ability to direct the relevant
activities of the investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affect its returns.
In the Companys separate financial statements, investments in subsidiaries are accounted for at cost less
impairment losses. On disposal of such investments, the difference between net disposal proceeds and
their carrying amounts is included in profit or loss.
2.11 Investments in associates
An associate is an entity in which the Group has significant influence. Significant influence is the power
to participate in the financial and operating policy decisions of the investee but is not control or joint
control over those policies.
On acquisition of an investment in associate, any excess of the cost of investment over the Groups share
of the net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill and
included in the carrying amount of the investment. Any excess of the Groups share of the net fair value
of the identifiable assets and liabilities of the investee over the cost of investment is excluded from the
carrying amount of the investment and is instead included as income in the determination of the Groups
share of the associates profit or loss for the period in which the investment is acquired.
84
Notes to the
financial statements
31 December 2014
85
www.heitech.com.my
86
Notes to the
financial statements
31 December 2014
The Group and the Company assess at each reporting date whether there is any objective evidence that
a financial asset is impaired.
(a) Trade and other receivables and other financial assets carried at amortised cost
To determine whether there is objective evidence that an impairment loss on financial assets has
been incurred, the Group and the Company consider factors such as the probability of insolvency or
significant financial difficulties of the debtor and default or significant delay in payments. For certain
categories of financial assets, such as trade receivables, assets that are assessed not to be impaired
individually are subsequently assessed for impairment on a collective basis based on similar risk
characteristics. Objective evidence of impairment for a portfolio of receivables could include the
Groups and the Companys past experience of collecting payments, an increase in the number of
delayed payments in the portfolio past the average credit period and observable changes in national
or local economic conditions that correlate with default on receivables.
87
www.heitech.com.my
Cash and cash equivalents comprise cash at banks and in hand, demand deposits, and short term, highly
liquid investments that are readily convertible to known amount of cash and which are subject to an
insignificant risk of changes in value. These also include bank overdrafts that form an integral part of the
Groups cash management, if any.
88
Notes to the
financial statements
31 December 2014
Inventories comprising consumables are stated at the lower of cost and net realisable value.
Costs incurred in bringing the inventories to their present location and condition are accounted for on a
first-in first-out basis.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated
costs necessary to make the sales.
Where the outcome of a contract can be reliably estimated, contract revenue and contract costs are
recognised as revenue and expenses respectively by using the stage of completion method. The stage of
completion is measured by reference to the proportion of contract costs incurred for work performed to
date to the estimated total contract costs.
Where the outcome of a contract cannot be estimated reliably, contract revenue is recognised to the extent
of contract costs incurred that are likely to be recoverable. Contract costs are recognised as expense in
the period in which they are incurred.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is
recognised as an expense immediately.
Contract revenue comprises the initial amount of revenue agreed in the contract and variations in contract
work, claims and incentive payments to the extent that it is probable that they will result in revenue and
they are capable of being reliably measured.
When the total of costs incurred on contracts plus recognised profits (less recognised losses) exceeds
progress billings, the balance is classified as amount due from customers on contracts. When progress
billings exceed costs incurred plus, recognised profits (less recognised losses), the balance is classified
as amount due to customers on contracts.
2.17 Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of economic resources will be required to settle the obligation
and the amount of the obligation can be estimated reliably.
Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. If it is
no longer probable that an outflow of economic resources will be required to settle the obligation, the
provision is reversed. If the effect of the time value of money is material, provisions are discounted using
a current pre tax rate that reflects, where appropriate, the risks specific to the liability. When discounting
is used, the increase in the provision due to the passage of time is recognised as a finance cost.
89
www.heitech.com.my
Financial liabilities are classified according to the substance of the contractual arrangements entered into
and the definitions of a financial liability.
Financial liabilities, within the scope of MFRS 139, are recognised in the statements of financial position
when, and only when, the Group and the Company become a party to the contractual provisions of the
financial instrument. Financial liabilities are classified as either financial liabilities at fair value through profit
or loss or other financial liabilities.
(a) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities held for trading include derivatives entered into by the Group and the Company
that do not meet the hedge accounting criteria. Derivative liabilities are initially measured at fair value
and subsequently stated at fair value, with any resultant gains or losses recognised in profit or loss.
Net gains or losses on derivatives include exchange differences.
The Group and the Company have not designated any financial liabilities as at fair value through profit
or loss.
(b) Other financial liabilities
The Groups and the Companys other financial liabilities include trade payables, other payables and
loans and borrowings.
Trade and other payables are recognised initially at fair value plus directly attributable transaction
costs and subsequently measured at amortised cost using the effective interest method.
Loans and borrowings are recognised initially at fair value, net of transaction costs incurred, and
subsequently measured at amortised cost using the effective interest method. Loans and borrowings
are classified as current liabilities unless the Group has an unconditional right to defer settlement of
the liability for at least 12 months after the reporting date.
For other financial liabilities, gains and losses are recognised in profit or loss when the liabilities are
derecognised, and through the amortisation process.
A financial liability is derecognised when the obligation under the liability is extinguished. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as a
derecognition of the original liability and the recognition of a new liability, and the difference in the
respective carrying amounts is recognised in profit or loss.
90
Notes to the
financial statements
31 December 2014
Borrowing costs are capitalised as part of the cost of a qualifying asset if they are directly attributable to
the acquisition, construction or production of that asset. Capitalisation of borrowing costs commences when
the activities to prepare the asset for its intended use or sale are in progress and the expenditures and
borrowing costs are incurred. Borrowing costs are capitalised until the assets are substantially completed
for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period they are incurred. Borrowing costs
consist of interest and other costs that the Group and the Company incurred in connection with the
borrowing of funds.
The Group participates in the national pension schemes as defined by the laws of the countries in which
it has operations. The Malaysian companies in the Group make contributions to the Employee Provident
Fund in Malaysia, a defined contribution pension scheme. Contributions to defined contribution pension
schemes are recognised as an expense in the period in which the related service is performed.
2.21 Leases
(a) As lessee
Finance leases, which transfer to the Group substantially all the risks and rewards incidental to
ownership of the leased item, are capitalised at the inception of the lease at the fair value of the
leased asset or, if lower, at the present value of the minimum lease payments. Any initial direct costs
are also added to the amount capitalised. Lease payments are apportioned between the finance
charges and reduction of the lease liability so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are charged to profit or loss. Contingent rents, if
any, are charged as expenses in the periods in which they are incurred.
Leased assets are depreciated over the estimated useful life of the asset. However, if there is no
reasonable certainty that the Group will obtain ownership by the end of the lease term, the asset is
depreciated over the shorter of the estimated useful life and the lease term.
Operating lease payments are recognised as an expense in profit or loss on a straight-line basis over
the lease term. The aggregate benefit of incentives provided by the lessor is recognised as a
reduction of rental expense over the lease term on a straight-line basis.
(b) As lessor
Leases where the Group does not transfer substantially all the risks and rewards of ownership of the
asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease
are added to the carrying amount of the leased asset and recognised over the lease term on the
same bases as rental income. The accounting policy for rental income is set out in Note 2.23(f).
Leases where the Group passes substantially all the risk and rewards of ownership to the lessee are
classified as finance leases. Lessor is required to recognise the assets held under a finance lease
as a lease receivable at an amount equal to the net investment in the lease.
91
www.heitech.com.my
A component of the Group is classified as discontinued operation when the criteria to be classified as
held for sale have been met or it has been disposed of and such a component represents a separate
major line of business or geographical area of operations. A component is deemed to be held for sale if
its carrying amounts will be recovered principally through a sale transaction rather than through continuing
use.
Upon classification as held for sale, non current assets and disposal groups are not depreciated and are
measured at the lower of carrying amount and fair value less costs to sell. Any differences are recognised
in profit or loss.
2.23 Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group
and the revenue can be reliably measured. Revenue is measured at the fair value of consideration received
or receivable.
(a) Long term fixed price contracts
Revenue on long term fixed price contracts is recognised based on the stage of completion method
determined on the proportion of costs incurred to date against total estimated costs for each contract.
Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of
the expenses recognised that are recoverable. All anticipated losses on contracts are fully provided
for.
(b) Short term contracts
Revenue is recognised upon rendering of services and transfer of significant risks. Revenue is not
recognised to the extent where there are significant uncertainties regarding recovery of the
consideration due or associated costs.
(c) Sale of goods
Revenue relates to sale of software and hardware is recognised upon the transfer of risks and
rewards of ownership of the goods to the customers. Revenue is not recognised to the extent where
there are significant uncertainties regarding recovery of the consideration due, associated costs or the
possible return of goods.
(d) Dividend income
Dividend income is recognised when the Groups right to receive payment is established.
(e) Information technology professional services
Revenue is recognised based on net billings to customers for services where no fixed contract sum
is agreed up front.
Revenue is recognised based on percentage of completion method over the period of the contract
where a fixed sum has been agreed up front. The percentage of completion is determined by reference
to the costs incurred to date to the total estimated costs where the outcome of the projects can be
reliably estimated. All anticipated losses are fully provided.
92
Notes to the
financial statements
31 December 2014
where the deferred tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and
Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused
tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences, and the carry forward of unused tax credits and
unused tax losses can be utilised except:
where the deferred tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at
the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
93
www.heitech.com.my
Where the sales tax incurred in a purchase of assets or services is not recoverable from the
taxation authority, in which case the sales tax is recognised as part of the cost of acquisition
of the asset or as part of the expense item as applicable; and
Receivables and payables that are stated with the amount of sales tax
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as
part of receivables or payables in the statement of financial position.
2.25 Segment reporting
For management purposes, the Group is organised into operating segments based on their products and
services which are independently managed by the respective segment managers responsible for the
performance of the respective segments under their charge. The segment managers report directly to the
management of the Company who regularly review the segment results in order to allocate resources to
the segments and to assess the segment performance. Additional disclosures on each of these segments
are shown in Note 35, including the factors used to identify the reportable segments and the measurement
basis of segment information.
94
Notes to the
financial statements
31 December 2014
(ii) In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible to by the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participants 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.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the use of relevant observable inputs and minimising
the use of unobservable inputs.
Level 1
Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2
Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
Level 3
Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
95
www.heitech.com.my
The preparation of the Groups financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure
of contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates could
result in outcomes that could require a material adjustment to the carrying amount of the asset or liability
affected in the future.
3.1
3.2
96
Notes to the
financial statements
31 December 2014
97
www.heitech.com.my
4. REVENUE
2013
RM000
Company
2014
2013
RM000
RM000
73,996
646
84,095
577
73,996
84,095
577
74,642
84,672
73,996
84,672
139,795
116,484
61,987
75,018
116,120
65,081
123,394
116,484
61,987
59,373
116,120
58,323
30,094
33,587
4,870
35,330
30,269
7,328
30,740
1,972
35,330
2,292
386,817
329,146
334,577
271,438
461,459
413,818
408,573
356,110
Other activities
Sale of hardware and software
Maintenance charges
System application and development
Disaster recovery and facility
management services
Bulk mailing charges
Others
Total revenue
Revenue pertaining to the MCMC Licensable Activities refers to those attributable revenue prescribed under the
Communication and Multimedia Act (CMA) 1998 Framework. Under the CMA, the provision of network related
services and internet data centre services are licensed as Network Services Provider Individual License (NSP (i))
and Application Service Provider Class License (ASP (c)) respectively.
5. OTHER INCOME
Group
2014
RM000
Interest income:
Fixed deposits from license banks
Dividend income- Available-for-sale
financial assets
Gain on disposal of property,
plant and equipment
Rental income
Reversal of impairment loss on
of trade and other receivables
Others
2013
RM000
Company
2014
2013
RM000
RM000
1,382
474
1,341
423
400
3,585
400
3,585
23
3,389
97
2,893
9,167
49
8,902
1,748
305
1,398
1,454
1,301
1,398
7,247
9,901
12,209
14,357
98
Notes to the
financial statements
31 December 2014
2013
RM000
Company
2014
2013
RM000
RM000
85,447
81,227
19,951
22,279
10,229
3,732
9,290
5,906
2,466
1,800
3,020
1,865
99,408
96,423
24,217
27,164
Included in employee benefits expense of the Group and of the Company are executive directors remuneration
amounting to RM Nil (2013: RM1,307,000) and RM Nil (2013: RM689,000) respectively as further disclosed in
Note 7.
7. DIRECTORS REMUNERATION
The details of remuneration receivable by directors of the Company during the year are as follows:
Group
2014
RM000
Company
2014
2013
RM000
RM000
Executive:
Salaries and other emoluments
Defined contribution plan
1,204
103
618
71
1,307
79
689
79
1,386
768
339
922
210
593
283
906
210
593
1,261
803
1,189
803
1,261
2,189
1,189
1,571
Non-executive:
Fees
Other emoluments
2013
RM000
99
www.heitech.com.my
The number of directors of the Company whose total remuneration during the financial year fell within the following
bands is analysed below:
Number of directors
2014
2013
Executive directors:
RM350,001 RM400,000
Non-executive directors:
Up to RM50,000
RM50,001 RM100,000
RM850,001 RM900,000
RM900,001 RM950,000
8
1
1
8. FINANCE COSTS
Group
2014
RM000
Interest expense on:
Term loans
Revolving credits
Obligations under finance leases
Bank overdrafts
Due to directors of a subsidiary
Others
2013
RM000
Company
2014
2013
RM000
RM000
1,506
1,421
367
3,566
99
430
2,378
565
1,151
2,853
99
217
1,082
1,421
367
3,464
267
2,089
565
983
2,754
187
7,389
7,263
6,601
6,578
100
Notes to the
financial statements
31 December 2014
The following items have been included in arriving at loss before tax from continuing operations:
Group
2014
RM000
Amortisation of intangible assets (Note 14)
Auditors remuneration
Statutory audit
Other services
Office rental
Write off of gross amount due from customer
Impairment loss on:
Trade receivables (Note 21)
Other receivables (Note 21)
Available-for-sale financial assets
Reversal of impairment loss on:
Trade receivables (Note 21)
Others receivables (Note 21)
Impairment loss on goodwill (Note 14)
Property, plant and equipment written off
Gain on disposal of property, plant and
equipment
Depreciation of property, plant and equipment
(Note 13)
Continuing operations
Discontinued operation
Loss on disposal of a subsidiary
Loss on disposal of available-for-sale
financial assets
2013
RM000
Company
2014
2013
RM000
RM000
694
87
87
87
330
56
5,235
13,007
311
56
5,678
188
56
4,415
160
56
4,421
1,303
1,039
5,969
7,963
1,878
1,032
1,039
2,195
7,644
1,878
(1,703)
(45)
2,188
42
(1,298)
(100)
(1,261)
(40)
(1,297)
(100)
(23)
(97)
(49)
11,514
8,808
8,559
6,955
11,514
8,797
11
8,559
6,955
2,072
3,020
339
339
101
www.heitech.com.my
The major components of income tax expense for the years ended 31 December 2014 and 2013 are:
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
1,789
(799)
(908)
1,414
(14)
218
1,400
218
(378)
(60)
832
68
145
584
394
213
584
476
1,613
584
218
82
Deferred tax continuing operations (Note 19):
Relating to origination and reversal of
temporary differences
Relating to change in tax rates
Under provision in prior years
102
Notes to the
financial statements
31 December 2014
The reconciliations between tax expense and the accounting loss multiplied by the applicable corporate tax rate
for the years ended 31 December 2014 and 2013 are as follows:
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
(9,947)
(31,438)
(298)
(7,458)
(45,654)
(9,947)
(31,736)
(7,458)
(45,654)
(2,487)
62
(7,934)
(1,865)
(11,414)
(60)
(1,286)
(1,126)
2,790
(3,737)
693
2,550
2,531
(282)
6,940
(2,674)
832
10,036
(27)
145
(908)
(14)
476
1,613
(1,952)
3,455
(2,188)
584
10,036
(27)
218
584
218
Domestic income tax is calculated at the Malaysian statutory tax rate of 25% (2013: 25%) of the estimated
assessable profit for the year. The domestic statutory tax rate will be reduced to 24% from the current years
rate of 25%, effective year of assessment 2016. The computation of deferred tax as at 31 December 2014 has
reflected these changes.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction.
The Group disposed off a 55% owned subsidiary, Electronic Media Airtime Services Sdn. Bhd. (EMAS) and the
disposal was completed on 15 May 2013. The assets and liabilities of the subsidiary has been de-consolidated
and the results from this subsidiary was presented separately on the statement of comprehensive income as
discontinued operation for the year ended 31 December 2013.
103
www.heitech.com.my
Basic loss per share are calculated by dividing the loss for the year attributable to equity holders of the Company
by the weighted average number of ordinary shares outstanding during the financial year.
Diluted loss per share is calculated by dividing the loss for the year attributable to equity holders of the Company
by the adjusted weighted average number of ordinary shares in issue and issuable during the financial year.
There are no potential dilution effects on ordinary shares of the Company for the current financial year.
Accordingly, the diluted loss per share for the current year is equal to basic loss per share.
There have been no other transactions involving ordinary shares or potential ordinary shares since the reporting
date and before the completion of these financial statements.
The following tables reflect the loss and share data used in the computation of basic and diluted loss per share
for the years ended 31 December:
Group
2014
RM000
2013
RM000
(10,474)
(32,579)
(164)
Total
(10,474)
(32,743)
Number of
shares
000
Number of
shares
000
101,225
101,225
Group
2014
2013
(10.35)
(32.35)
Basic/diluted loss per share from continuing operations (sen per share)
(10.35)
(32.19)
Basic/diluted loss per share from discontinued operation (sen per share)
(0.16)
104
Notes to the
financial statements
31 December 2014
Freehold
land
RM000
Building
RM000
11,506
44,110
2,941
37,014
161,478
20,700
10,817
288,566
(56)
587
3
(614)
(54)
6,264
512
(1)
(226)
2,301
962
(752)
44
325
(52)
5,538
9,196
7,340
(1,419)
(336)
11,506
44,054
198
500
164
2,863
198
(121)
(84)
5
43,563
1,363
(146)
15,855
(377)
174
163,989
8,537
(1,172)
21,017
243
16,355
(16,355)
303,347
10,539
(1,439)
(461)
343
At 31 December 2014
11,506
44,916
2,861
60,432
171,354
21,260
312,329
Group
Total
RM000
Cost
At 1 January 2013
Acquisition of new
subsidiaries
Additions
Disposals
Exchange differences
Accumulated depreciation
At 1 January 2013
Acquisition of new
subsidiaries
Charge for the year
Disposals
Exchange differences
16,407
2,321
22,185
155,267
17,322
213,502
3,645
510
102
(614)
(26)
5,599
1,154
(1)
(42)
1,822
2,471
(752)
16
1,436
(24)
7,947
8,808
(1,391)
(68)
20,052
2,364
26
2,293
277
(121)
(57)
6
28,895
3,789
(107)
(374)
80
158,808
3,677
(1,169)
18,750
1,407
228,798
11,514
(1,397)
(431)
112
At 31 December 2014
22,442
2,398
32,283
161,316
20,157
238,596
At 31 December 2013
11,506
24,002
570
14,668
5,181
2,267
16,355
74,549
At 31 December 2014
11,506
22,474
463
28,149
10,038
1,103
73,733
105
www.heitech.com.my
Freehold
land
RM000
Building
RM000
At 1 January 2013
Additions
Disposals
9,895
39,019
1,558
(352)
14,474
128
(1)
155,030
657
(752)
21,111
293
(8)
10,817
5,538
251,904
6,616
(1,113)
9,895
39,019
194
500
1,206
95
14,601
580
15,855
154,935
8,351
21,396
189
16,355
(16,355)
257,407
9,409
At 31 December 2014
9,895
39,713
1,301
31,036
163,286
21,585
266,816
At 1 January 2013
Charge for the year
Disposals
15,368
3,645
1,543
14
(352)
10,792
262
(1)
151,417
1,600
(752)
17,345
1,434
(8)
196,465
6,955
(1,113)
19,013
2,201
1,205
19
11,053
1,863
152,265
3,074
18,771
1,402
202,307
8,559
At 31 December 2014
21,214
1,224
12,916
155,339
20,173
210,866
At 31 December 2013
9,895
20,006
3,548
2,670
2,625
16,355
55,100
At 31 December 2014
9,895
18,499
77
18,120
7,947
1,412
55,950
Company
Total
RM000
Cost
Accumulated depreciation
During the financial year, the Group and the Company acquired property, plant and equipment at aggregate cost
of RMnil (2013: RMnil) and RMnil (2013: RMnil) respectively under finance lease and hire purchase contracts.
The net carrying amount of property, plant and equipment of the Group and of the Company held under finance
lease were RM13,797,000 (2013: RM14,813,000) and RM10,730,000 (2013: RM10,817,000) respectively.
106
Notes to the
financial statements
31 December 2014
In addition to assets held under finance leases, the net carrying amounts of property, plant and equipment
pledged as securities for loans and borrowings (Note 25) are as follows:
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
9,895
2,712
9,895
2,780
9,895
9,895
12,607
12,675
9,895
9,895
Goodwill
RM000
Secured
contract
RM000
Software
development
costs
RM000
Development
costs
RM000
Total
RM000
18,627
11,397
1,028
12,533
43,585
8,959
(5,676)
(11,397)
3,430
2,721
8,959
(17,073)
6,151
(15,254)
(15,254)
21,910
4,458
26,368
(3,144)
780
2,364
18,766
629
780
6,822
3,840
26,368
4,469
At 31 December 2014
19,395
780
10,662
30,837
Freehold land
Building
Group
Cost
At 1 January 2013
Acquisition of subsidiaries
(provisional)
Disposal of a subsidiary
Additions
Transfer to amount due from
customers on contracts
At 31 December 2013 and
1 January 2014
(as previously stated)
Adjustments to the provisional
amount on the acquisition of
subsidiaries
107
www.heitech.com.my
Group
Goodwill
RM000
Secured
contract
RM000
Software
development
costs
RM000
Development
costs
RM000
Total
RM000
3,427
(3,427)
11,397
(11,397)
681
87
15,505
(14,824)
87
2,188
213
768
481
768
2,188
694
At 31 December 2014
2,188
213
1,249
3,650
At 31 December 2013
18,766
780
6,054
25,600
At 31 December 2014
17,207
567
9,413
27,187
Software
development
costs
RM000
Development
costs
RM000
Total
RM000
Company
Cost
At 1 January 2013
Additions
Transfer to amount due from customers on contracts
1,054
1,054
1,054
At 1 January 2013
Amortisation
727
87
727
87
814
87
814
87
At 31 December 2014
901
901
At 31 December 2013
240
240
At 31 December 2014
153
153
12,533
2,721
(15,254)
13,587
2,721
(15,254)
Accumulated amortisation
108
Notes to the
financial statements
31 December 2014
2013
RM000
5,532
7,420
4,255
5,532
9,608
3,626
17,207
18,766
Due to the weakening economic performance of one of the CGUs in the mailing and document processing services
segment, the management has recognised an impairment loss of RM2,188,000 in the current year against
goodwill with a carrying amount of RM2,188,000 as at 31 December 2013. The impairment charge is recorded
within other expenses in the consolidated statement of comprehensive income.
Key assumptions used in value in use calculations
The recoverable amount of a CGU is determined based on value in use calculations using cash flow projections
based on financial budgets approved by management covering a three to five year period.
The calculations of value in use for the CGUs are most sensitive to the following assumptions:
(a) Gross margin
The basis used to determine the value assigned to the budgeted gross margin is the average margin
achieved in the year immediately before the budgeted year increased for expected efficiency improvements.
The management believes that the average growth rates used as follows are consistent with the long term
average growth rate of the economy.
Group
2014
Computer software development, sales and support
Mailing and document processing services
Mobile value added services
0% 1%
0% 2%
1% 2%
2013
(restated)
0 1%
0 2%
1 2%
109
www.heitech.com.my
The discount rates used as follows are pre-tax and reflect specific risks relating to the relevant segments.
Group
2014
Computer software development, sales and support
Mailing and document processing services
Mobile value added services
10% 13%
11% 16%
11% 13%
2013
(restated)
10 13%
11 16%
13 15%
A reduction of 1% in the growth rate or a rise of 1% in the discount rate for the CGU of computer software
development, sales and support would result in impairment of goodwill. A reduction of 1% in the growth rate or
a rise of 1% in the discount rate for the CGU of mailing and document processing services would result in
impairment of goodwill. For CGU of mobile value added services, a reduction of 2% in the growth rate or a rise
of 2% in the discount rate would result in impairment of goodwill.
48,738
2,140
48,738
2,140
50,878
(7,946)
50,878
(7,946)
42,932
42,932
110
Notes to the
financial statements
31 December 2014
Country of
incorporation
Principal activities
Effective equity
interest (%)
2014
2013
Malaysia
60
60
Malaysia
77
77
Malaysia
80
80
Malaysia
100
100
Malaysia
100
100
Malaysia
100
100
Malaysia
100
100
Malaysia
100
100
Malaysia
100
100
Malaysia
100
100
Malaysia
100
100
111
www.heitech.com.my
Principal activities
Malaysia
Dormant.
100
100
Malaysia
Dormant.
100
100
Malaysia
Dormant.
100
100
Australia
100
100
Malaysia
100
100
Indonesia
70
70
Name
Effective equity
interest (%)
2014
2013
Name
Country of incorporation
Malaysia
2014
2013
60%
60%
2014
RM000
2013
RM000
1,462
1,407
55
(470)
The summarised financial information of this subsidiary is provided below. This information is based on
amounts before inter-company eliminations.
112
Notes to the
financial statements
31 December 2014
2013
RM000
5,443
(1,487)
185
(4,732)
6,814
(2,858)
530
(5,062)
(5)
(591)
728
(581)
(595)
137
(1,176)
137
(1,176)
55
(470)
2014
RM000
2013
RM000
6,384
6,994
246
(2,550)
370
(3,398)
(23)
4,080
3,943
2,618
1,462
2,536
1,407
2014
RM000
2013
RM000
2,079
(18)
(343)
(133)
(6)
2,061
(482)
113
www.heitech.com.my
Acquisitions in 2013
The Group acquired 80% equity interest in Dapat Vista (M) Sdn. Bhd. and 100% equity interest in Pro Office
Solutions Sdn. Bhd. on 15 May 2013 and 31 August 2013 respectively. The fair value of the identifiable
assets and liabilities of Dapat Vista (M) Sdn. Bhd. and Pro Office Solutions Sdn. Bhd. as at the date of
acquisition were as follows:
Dapat Vista
(M) Sdn. Bhd.
RM000
Pro Office
Solutions
Sdn. Bhd.
RM000
421
780
2,364
1,133
228
(1,412)
(1,208)
1,602
296
9,480
240
788
(3,779)
(1,539)
(277)
2,306
(461)
4,255
6,811
2,189
Purchase consideration
6,100
9,000
228
788
(9,000)
228
(8,212)
The net assets recognised in the 31 December 2013 financial statements were based on a provisional
assessment of their fair value while the Group sought independent valuations of the assets owned by Dapat
Vista (M) Sdn. Bhd. and Pro Office Solutions Sdn. Bhd. The valuation had not been completed by the date
the 2013 financial statements were approved for issue by management.
In 2014, the valuation for Dapat Vista (M) Sdn. Bhd. was completed and the fair value of the intangible
assets i.e. secured contract and software development was RM780,000 and RM2,364,000 respectively, an
increase over the provisional amount of RM Nil for these assets in 2013. As a result, there was a
corresponding reduction in goodwill of RM3,144,000 for Dapat Vista (M) Sdn. Bhd. The increased depreciation
charge on the value of the secured contract and software development from the acquisition date to 31
December 2013 was not material. The 2013 comparative information was restated to reflect the adjustment
to the provisional amounts. Please refer to Note 14 for further details on the adjustments.
In 2014, the valuation for Pro Office Solutions Sdn. Bhd. was completed and the fair value of the identifiable
assets and liabilities equals to the provisional value recognised in the financial statements of 31 December
2013.
114
Notes to the
financial statements
31 December 2014
2013
RM000
Company
2014
2013
RM000
RM000
3,075
4,089
3,075
4,097
2,900
2,900
7,164
(3,075)
7,172
(3,075)
2,900
(2,900)
2,900
(2,900)
4,089
4,097
Country of
incorporation
Principal activities
Malaysia
Dormant.
40
40
Malaysia
40
40
Malaysia
31
50
Singapore
50
50
Name
Effective equity
interest (%)
2014
2013
^ Audited by firms of chartered accountants other than Hanafiah Raslan & Mohamad.
115
www.heitech.com.my
The summarised financial information of the associates, not adjusted for the proportion of ownership interest held
by the Group, is as follows:
2014
Vantage
Point
Consulting
E-Komoditi
Sdn. Bhd.
Sdn. Bhd.
RM000
RM000
Assets and liabilities
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Equity
Groups carrying amount of the investment
28,547
95
(15,767)
(1,106)
8,134
192
(7,923)
(95)
2013
Vantage
Point
Consulting
E-Komoditi
Sdn. Bhd.
Sdn. Bhd.
RM000
RM000
20,524
2,229
(9,910)
(1,516)
5,818
180
(6,895)
(10,074)
(10,971)
11,769
309
11,327
3,715
374
3,515
582
Revenue
Other income
Administrative expenses
Finance costs
35,513
3,897
(38,170)
(276)
6,689
77
(7,287)
27,241
65
(26,998)
(88)
10,036
24
(8,605)
964
(319)
(521)
219
(80)
1,455
645
(521)
139
1,455
645
(521)
139
1,455
200
(208)
69
582
2013
RM000
Company
2014
2013
RM000
RM000
6,812
6,312
6,148
6,148
116
Notes to the
financial statements
31 December 2014
2013
RM000
Company
2014
2013
RM000
RM000
Current
Lease receivable (Note 22)
31,989
32,415
31,989
32,415
Non-current
Lease receivable
61,200
81,942
61,200
81,942
93,189
114,357
93,189
114,357
The lease receivable represents the present value of payments receivable from the Government of Malaysia in
relation to a build and lease arrangement. The lease to the Government has been ascertained to be a finance
lease. In determining the present value, a discount rate of 7.5% has been utilised.
Group
2014
RM000
Total minimum lease receivable
Less: Amount representing unwinding discount
Present value of minimum lease receivable
206,970
(113,781)
2013
RM000
Company
2014
2013
RM000
RM000
228,137
(113,780)
206,970
(113,781)
228,137
(113,780)
93,189
114,357
93,189
114,357
31,989
61,200
32,415
64,830
17,112
31,989
61,200
32,415
64,830
17,112
93,189
(31,989)
114,357
(32,415)
93,189
(31,989)
114,357
(32,415)
61,200
81,942
61,200
81,942
117
www.heitech.com.my
Deferred tax (assets)/liabilities of the Group and Company relate to the following:
Accelerated
capital
allowances
RM000
Other
temporary
differences
RM000
Total
RM000
Group
At 1 January 2013
Acquisition of new subsidiaries
Recognised in profit or loss
(2,729)
430
3,146
277
(217)
417
277
213
(2,299)
394
3,206
907
394
At 31 December 2014
(1,905)
3,206
1,301
Company
At 1 January 2013, 31 December 2013 and 1 January 2014
Recognised in profit or loss
1,747
(1,747)
(2,331)
2,331
At 31 December 2014
Group
2014
RM000
Presented after appropriate offsetting
as follows:
Deferred tax liabilities
Deferred tax assets
1,314
(13)
1,301
Company
2014
2013
RM000
RM000
1,491
(584)
(584)
907
(584)
Deferred tax assets have not been recognised in respect of the following items:
Group
2014
RM000
Unabsorbed capital allowances
Unrecognised tax losses
Other temporary difference
2013
RM000
(584)
584
11,353
28,226
2,083
2013
RM000
Restated
2,188
23,538
Company
2014
2013
RM000
RM000
Restated
10,918
833
2,188
12,303
The availability of the unrecognised tax losses, unabsorbed capital allowances and other temporary differences
for offsetting against future taxable profits of the respective subsidiaries are subject to no substantial changes
in shareholdings of those subsidiaries under the Income Tax Act, 1967 and guidelines issued by the tax authority.
118
Notes to the
financial statements
31 December 2014
20. INVENTORIES
Group
2014
RM000
Cost
Consumables
1,101
2013
RM000
1,442
2013
RM000
Company
2014
2013
RM000
RM000
118,211
1,521
164,748
2,402
98,036
31,939
1,521
131,045
16,319
2,402
119,732
167,150
131,496
149,766
Trade receivables
Third parties
Amounts due from subsidiaries
Amounts due from associates
Less: Allowance for impairment
Third parties
Amounts due from subsidiaries
Amounts due from associates
(23,570)
(601)
(23,970)
(601)
(15,991)
(2,003)
(601)
(16,220)
(2,003)
(601)
95,561
142,579
112,901
130,942
3,596
24,551
335
4,097
27,481
2,271
23,217
335
3,216
26,042
28,147
31,913
25,488
29,593
(20,860)
(19,866)
(20,091)
(19,092)
Other receivables
Amount due from a corporate shareholder
Deposits
Sundry receivables
Less: Allowance for impairment
Sundry receivables
7,287
12,047
5,397
10,501
102,848
138,592
154,626
36,892
118,298
129,235
141,443
29,721
241,440
191,518
247,533
171,164
119
www.heitech.com.my
Trade receivables are non-interest bearing and are generally on 30 days (2013: 30 days) terms. They are
recognised at their original invoice amounts which represent their fair values on initial recognition.
The ageing analysis of the Groups and Companys trade receivables is as follows:
Group
2014
RM000
Neither past due nor impaired
2013
RM000
Company
2014
2013
RM000
RM000
61,125
96,223
87,308
90,613
9,160
6,721
23,945
5,366
8,246
5,848
21,746
3,634
18,555
17,045
11,499
14,949
Impaired
34,436
24,171
46,356
24,571
25,593
18,595
40,329
18,824
119,732
167,150
131,496
149,766
Trade and other receivables that are neither past due nor impaired are creditworthy debtors with good
payment records with the Group and the Company.
None of the Groups and the Companys trade receivables that are neither past due nor impaired have been
renegotiated during the financial year.
The Group and the Company have trade receivables amounting to RM34,436,000 (2013: RM46,356,000)
and RM25,593,000 (2013: RM40,329,000) respectively that are past due at the reporting date but not
impaired.
Trade receivables that were past due but not impaired relate to customers that have a good track record
with the Group and the Company mainly the ministries and agencies related to Government of Malaysia.
Based on past experience and no adverse information to date, the directors of the Group and of the
Company are of the opinion that no allowance for impairment is necessary in respect of these balances as
there has not been a significant change in the credit quality of the customers and the balances are still
considered fully recoverable.
120
Notes to the
financial statements
31 December 2014
The Groups and the Companys trade receivables that are impaired at the reporting date and the movement
of the allowance accounts used to record the impairment are as follows:
Individually impaired
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
24,171
(24,171)
24,571
(24,571)
18,595
(18,595)
18,824
(18,824)
2013
RM000
Company
2014
2013
RM000
RM000
At 1 January
Charge for the year (Note 9)
Reversal of impairment loss (Note 9)
24,571
1,303
(1,703)
19,900
5,969
(1,298)
18,824
1,032
(1,261)
17,926
2,195
(1,297)
At 31 December
24,171
24,571
18,595
18,824
Trade receivables that are individually determined to be impaired at the reporting date relate to debtors that
have defaulted on payments. These receivables are not secured by any collateral or credit enhancements.
Amounts due from subsidiaries and a corporate shareholder are non-trade in nature, non-interest bearing,
unsecured and are repayable on demand.
The Groups other receivables that are impaired at the reporting date and the movement of the allowance
accounts used to record the impairment are as follows:
Individually impaired
Other receivables
nominal amounts
Less: Allowance for impairment
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
20,860
(20,860)
19,866
(19,866)
20,091
(20,091)
19,092
(19,092)
121
www.heitech.com.my
2013
RM000
Company
2014
2013
RM000
RM000
At 1 January
Charge for the year (Note 9)
Reversal of impairment loss (Note 9)
19,866
1,039
(45)
12,003
7,963
(100)
19,092
1,039
(40)
11,548
7,644
(100)
At 31 December
20,860
19,866
20,091
19,092
2013
RM000
Company
2014
2013
RM000
RM000
179
68,176
31,989
58,416
32,415
68,176
31,989
61,947
32,415
100,165
91,010
100,165
94,362
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
376,972
39,956
262,601
33,048
376,972
39,956
266,132
33,048
416,928
(348,752)
295,649
(237,233)
416,928
(348,752)
299,180
(237,233)
68,176
58,416
68,176
61,947
122
Notes to the
financial statements
31 December 2014
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
114,371
107,568
110,840
112,465
The contract costs incurred during the year are the system development costs for the projects.
The Group has invested in software development for hospital information system. On 6th February 2014, the
Group was awarded a contract to supply, deliver, install, test, configure and commission ICT equipment for
expansion of Sistem Pengurusan Pesakit (SPP) at Hospital Raja Perempuan Zainab II, Kota Bharu, Hospital
Tuanku Jaafar, Seremban and Hospital Bentong, Pahang by the Ministry of Health. The contract was successfully
delivered and deployed during the year 2014. However, as the future award is yet to be obtained, the amount
invested on the software development of RM13,007,000 has been written-down.
2013
RM000
Company
2014
2013
RM000
RM000
17,201
121,391
9,290
27,602
9,881
119,354
3,909
25,812
138,592
36,892
129,235
29,721
Short term deposits with licensed banks of the Group and of the Company amounting to RM121,391,000
(2013: RM25,812,000) and RM119,354,000 (2013: RM25,812,000) respectively are pledged as securities for
loans and borrowings (Note 25).
Deposits with licensed banks earn interests at the respective deposit rates. The weighted average effective
interest rate as at 31 December 2014 for the Group and the Company was 2.99% (2013: 2.91%) per annum.
The maturity period of deposits as at 31 December 2014 for the Group and the Company was 103 days (2013:
308 days).
For the purpose of the statements of cash flows, cash and cash equivalents comprise the following at the
reporting date:
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
138,592
(25,425)
36,892
(37,853)
129,235
(24,424)
29,721
(36,608)
113,167
(121,391)
(961)
(25,812)
104,811
(119,354)
(6,887)
(25,812)
(8,224)
(26,773)
(14,543)
(32,699)
123
www.heitech.com.my
Group
2014
RM000
2015
On demand
2015
21,224
25,425
137,904
22,471
12,125
45,422
20,498
24,424
137,902
21,785
10,880
45,422
3,076
4,674
2,278
3,606
187,629
84,692
185,102
81,693
2016 2018
2018
61,128
79,212
25,728
54,314
71,040
25,728
2016 2018
17
3,086
2,619
61,145
108,026
54,314
99,387
248,774
192,718
239,416
181,080
2013
RM000
Company
2014
2013
RM000
RM000
Current
Secured:
Term loans
Bank overdrafts
Revolving credits
Obligations under finance
leases (Note 31(c))
2015
Non-current
Secured:
Term loans
Bank overdrafts
Obligations under finance
leases (Note 31(c))
The remaining maturities of the loans and borrowings as at 31 December are as follows:
Group
2014
RM000
Maturity of loans and borrowings:
Within one year
More than 1 year and less than 2 years
More than 2 years and less than 5 years
2013
RM000
Company
2014
2013
RM000
RM000
187,629
40,294
20,851
84,692
32,617
75,409
185,102
33,441
20,873
81,693
32,274
67,113
248,774
192,718
239,416
181,080
124
Notes to the
financial statements
31 December 2014
loan
loan
loan
loan
1
2
3
4
2013
RM000
Company
2014
2013
RM000
RM000
65,110
9,702
7,540
75,637
17,188
8,184
674
65,110
9,702
75,637
17,188
82,352
101,683
74,812
92,825
(i)
Term loan 1 is drawndown by the Company in relation to the design, build, supply, install, commission and
maintain the Tactical Operational Flight Trainer, the building facilities and the Computer Based Trainer on
the contract awarded by the Ministry of Defense of Malaysia.
First, second and third legal charge over the freehold land of the Company as disclosed in Note 13;
Assignment of all contract proceeds of the Company with the exception of the Government-related
contracts.
(ii) Term loan 2 is drawndown by the Company in relation to the construction of a datacentre.
First, second and third legal charge over the freehold land of the Company as disclosed in Note 13;
Assignment of all contract proceeds of the Company with the exception of the Government-related
contracts.
(iii) Term loan 3 is drawndown by Inter-City MPC (M) Sdn. Bhd. in relation to the acquisition of Pro Office
Solutions Sdn. Bhd.
First legal charge over a building of the subsidiary as disclosed in Note 13 to the financial statements;
Joint and several guarantee by certain directors.
Term loans bear interest at respective term loans rates. The weighted average effective interest rate of term
loans of the Group were 5.95% (2013: 4.34%) per annum. The repayment of the Groups term loans are
due from 2012 to 2018.
125
www.heitech.com.my
Bank overdrafts are secured by negative pledge on all present and future unencumbered assets of the Company.
The weighted average effective interest rate of bank overdrafts was 7.55% (2013: 7.50%) per annum.
Revolving credits
Revolving credits are secured by negative pledge on all present and future unencumbered assets of the Company.
The weighted average effective interest rate of revolving credits was 6.92% (2013: 4.05%) per annum.
2013
RM000
Company
2014
2013
RM000
RM000
Trade payables
76,199
91,405
66,736
48,385
81,501
30,434
76,199
91,405
115,121
111,935
3,051
360
8,477
13,803
3,221
1,231
4,136
4,187
360
7,065
9,359
1,231
2,535
4,343
25,691
12,775
16,784
8,109
101,890
248,774
104,180
192,718
131,905
239,416
120,044
181,080
350,664
296,898
371,321
301,124
Third parties
Amounts due to subsidiaries
Other payables
Amount due to directors of a subsidiary
Deposits
Accruals
Sundry payables
These amounts are non-interest bearing. Trade payables are normally settled on 30 to 90 days (2013: 30
to 90 days) terms.
The amount due to directors of a subsidiary is unsecured, bears interest at 10% per annum and is repayable
on demand. The loan from directors is convertible into 10% Redeemable Preference Shares (RPS) of RM1.00
each of the subsidiary at the rate of 1.00 RPS for every RM1.00 of the loan outstanding.
126
Notes to the
financial statements
31 December 2014
Amount
101,225
101,225
Share
premium
RM000
Total share
capital and
share
premium
RM000
16,526
117,751
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled
to one vote per share at general meetings of the Company. All ordinary shares rank equally with regard to the
Companys residual assets.
The Company may distribute dividends out of its entire retained earnings as at 31 December 2014 and 31
December 2013 under the single tier system.
Group
At 1 January 2013
Other comprehensive income:
Transfer to profit or loss upon disposal
Foreign currency translation
Transactions with owners
Share options expired
Employee
share
option
reserve
RM000
Foreign
currency
translation
reserve
RM000
1,215
(864)
Fair value
adjustment
reserve
RM000
(340)
Total
RM000
11
1,528
340
340
1,528
1,215
664
1,879
(1,215)
(1,215)
At 31 December 2013
664
664
At 1 January 2014
664
664
(4,240)
(4,240)
At 31 December 2014
(3,576)
(3,576)
127
www.heitech.com.my
Company
At 1 January 2013
Other comprehensive income:
Available for sale investments fair value movement
Transactions with owners
Share options expired
At 31 December 2013, 1 January 2014 and
31 December 2014
Employee
share
option
reserve
RM000
Fair value
adjustment
reserve
RM000
Total
RM000
1,215
(340)
875
340
340
1,215
1,215
(1,215)
(1,215)
Employee share option reserve represents the equity-settled share options granted to employees. The reserve
is made up of the cumulative value of services received from employees recorded over the vesting period
commencing from the grant date of equity-settled share options, and is reduced by the expiry or exercise of
the share options. The ESOS has expired on 13 May 2013.
The foreign currency translation reserve represents exchange differences arising from translation of the
financial statements of foreign operations whose functional currencies are different from that of the Groups
presentation currency.
Fair value adjustment reserve represents the cumulative fair value changes, net of tax, of available-for-sale
financial assets until they are disposed of or impaired.
128
Notes to the
financial statements
31 December 2014
2013
RM000
Group
Services provided to Permodalan Nasional Berhad (PNB), a corporate
shareholder of the Company:
Network related services
Services provided to Amanah Saham Nasional Berhad,
a fund manager of PNB
Rental income of office space by PNB
Rental expenses of building to PNB
(5,525)
(5,149)
(16,918)
(828)
4,466
(19,520)
4,438
(218)
(828)
4,466
(280)
4,438
Company
Office rental receivable from subsidiaries
Rental income of office space by PNB
Rental expenses of building to PNB
Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of the entity either directly or indirectly, including any director of the entity.
The remuneration of directors and other members of key management during the year was as follows:
Group
2014
RM000
Short-term employee benefits
Defined contribution plan
2013
RM000
Company
2014
2013
RM000
RM000
3,864
281
3,198
325
3,792
281
2,998
294
4,145
3,523
4,073
3,292
1,261
2013
RM000
2,189
Company
2014
2013
RM000
RM000
1,189
1,571
129
www.heitech.com.my
31. COMMITMENTS
(a) Capital commitments
626
325
52
The Group and the Company have entered into non-cancellable operating lease agreements for the use of
buildings. These leases have average life of between 2 to 10 years with renewal options and right of first
refusal included in the contracts. There are no restrictions placed upon the Company by entering into these
leases.
Future minimum rentals payable under non-cancellable operating leases (excluding land use rights) at the
reporting date are as follows:
Group
2014
RM000
Future minimum lease payments:
Not later than 1 year
Later than 1 year and
not later than 5 years
Later than 5 years
2013
RM000
Company
2014
2013
RM000
RM000
4,442
4,442
4,442
4,442
13,888
18,330
13,888
18,330
18,330
22,772
18,330
22,772
130
Notes to the
financial statements
31 December 2014
Company
2014
2013
RM000
RM000
3,076
5,407
2,278
3,947
17
2,943
2,868
3,093
8,350
(590)
2,278
6,815
(590)
3,093
7,760
2,278
6,225
3,076
4,674
2,278
3,606
17
3,086
2,619
2013
RM000
3,093
(3,076)
17
7,760
(4,674)
3,086
2,278
(2,278)
6,225
(3,606)
2,619
The Group and the Company have entered into hire purchase agreements for motor vehicles and equipment as
disclosed in Note 13. The hire purchase payable bore effective interest rate of 3.15% (2013: 3.15%) per annum.
The Group and the Company are exposed to financial risks arising from their operations and the use of financial
instruments. The key financial risks include credit risk, liquidity risk, interest rate risk, and foreign currency risk.
The Board of Directors reviews and agrees policies and procedures for the management of these risks, which are
executed by the Group Chief Executive Officer and management. The audit committee provides independent
oversight to the effectiveness of the risk management process.
It is, and has been throughout the current and previous financial year, the Groups policy that no derivatives shall
be undertaken except for the use as hedging instruments where appropriate and cost-efficient. The Group and
the Company do not apply hedge accounting.
The following sections provide details regarding the Groups and Companys exposure to the above-mentioned
financial risks and the objectives, policies and processes for the management of these risks.
131
www.heitech.com.my
Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty
default on its obligations. The Groups and the Companys exposure to credit risk arises primarily from trade
and other receivables. For the financial assets (including investments and cash and bank balances), the
Group and the Company minimise credit risk by dealing exclusively with high credit rating counterparties.
The Groups and the Companys objective is to seek continual revenue growth while minimising losses
incurred due to increased credit risk exposure. The Group and the Company trade only with recognised and
creditworthy third parties. It is the Groups and the Companys policy that all customers who wish to trade
on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored
on an ongoing basis with the result that the Groups and the Companys exposure to bad debts is not
significant.
At the reporting date, the Groups and the Companys maximum exposure to credit risk is represented by
the carrying amount of each class of financial assets recognised in the statements of financial position.
At the reporting date, approximately 68% (2013: 56%) of the Groups trade receivables were due from public
sector agencies in Malaysia.
Information regarding trade and other receivables that are neither past due nor impaired is disclosed in Note
21. Deposits with banks that are neither past due nor impaired are placed with or entered into with
reputable financial institutions with high credit ratings and no history of default.
Information regarding financial assets that are either past due or impaired is disclosed in Note 21.
Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial
obligations due to shortage of funds. The Groups and the Companys exposure to liquidity risk arises
primarily from mismatches of the maturities of financial assets and liabilities. The Groups and the
Companys objective is to maintain a balance between continuity of funding and flexibility through the use
of stand-by credit facilities.
The Groups and the Companys overall liquidity risk management is to maintain sufficient levels of cash to
meet its working capital requirements. In addition, the Group and the Company strive to maintain available
banking facilities at a reasonable level to its overall debt position. As far as possible, the Group and the
Company raise funding from shareholders, capital markets and financial institutions and balance their
portfolio with some short term funding so as to achieve overall cost effectiveness.
132
Notes to the
financial statements
31 December 2014
The table below summarises the maturity profile of the Groups and the Companys liabilities at the reporting
date based on contracted undiscounted repayment obligations.
2014
RM000
On demand
or within
one year
One to five
years
Total
Financial liabilities:
Trade and other payables
Loans and borrowings
101,890
187,629
61,145
101,890
248,774
289,519
61,145
350,664
Financial liabilities:
Trade and other payables
Loans and borrowings
131,905
185,102
54,314
131,905
239,416
317,007
54,314
371,321
Group
Company
2013
RM000
On demand
or within
one year
One to five
years
Total
Financial liabilities:
Trade and other payables
Loans and borrowings
104,180
84,692
108,026
104,180
192,718
188,872
108,026
296,898
Financial liabilities:
Trade and other payables
Loans and borrowings
120,044
81,693
99,387
120,044
181,080
201,737
99,387
301,124
Group
Company
133
www.heitech.com.my
Interest rate risk is the risk that the fair value or future cash flows of the Groups and the Companys
financial instruments will fluctuate because of changes in market interest rates.
The Groups and the Companys exposure to interest rate risk arises primarily from their loans and
borrowings. The Groups and the Companys policy is to manage interest cost using a mix of fixed and
floating rate borrowings.
At the reporting date, if interest rates had been 10 basis points lower/higher, with all other variables held
constant, the Groups profit net of tax would have been RM110,000 (2013: RM268,000) higher/lower,
arising mainly as a result of lower/higher interest expense on floating rate loans and borrowings, higher/
lower interest income from floating rate loans to related parties, and lower/higher positive fair value of an
interest rate swap. The assumed movement in basis points for interest rate sensitivity analysis is based on
the currently observable market environment.
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates.
The Group has transactional currency exposure arising from sales or purchases that are denominated in a
currency other than the functional currency of the Group, RM. The foreign currencies in which these
transactions are denominated are mainly and Australian Dollars (AUD) and Indonesian Rupiah (IDR).
The Group operates mainly in Malaysia and transact predominantly in RM. As such, it is not materially
exposed to foreign exchange risk.
Note
Group
Carrying
Fair value
amount
Level 2
RM000
RM000
Company
Carrying
Fair value
amount
Level 2
RM000
RM000
2014
Financial asset
Available-for-sale financial
assets (non-current)
Unquoted shares, at costs
17
6,812
6,148
Financial liability
Loans and borrowings
(non-current)
Term loans
25
61,128
54,449
54,314
48,371
134
Notes to the
financial statements
31 December 2014
Note
Group
Carrying
Fair value
amount
Level 2
RM000
RM000
Company
Carrying
Fair value
amount
Level 2
RM000
RM000
2013
Financial asset
Available-for-sale financial
assets (non-current)
Unquoted shares, at costs
17
6,312
6,148
Financial liability
Loans and borrowings
(non-current)
Term loans
25
79,212
61,789
71,040
61,789
Fair value information has not been disclosed for the Groups investments in equity instruments that
are carried at cost because fair value cannot be measured reliably. These equity instruments mainly
represent ordinary shares in companies that are not quoted in any market. In addition, the variability
in the range of reasonable fair value estimates derived from valuation techniques is insignificant. The
Group does not intend to dispose of this investment in the foreseeable future.
Financial instruments that are not carried at fair value and whose carrying amounts are reasonable
approximation of fair value
The following are the classes of financial instruments that are not carried at fair value and whose carrying
amounts are reasonable approximation of fair value:
Note
Trade and other receivables
Loans and borrowings (current)
Trade and other payables
Obligations under finance lease (current)
21
25
26
31(c)
The carrying amounts of these financial assets and liabilities are reasonable approximation of fair values
due to the relatively short-term nature.
The carrying amounts of loans and borrowings are reasonable approximation of fair value due to the
insignificant impact of discounting.
135
www.heitech.com.my
The primary objective of the Groups capital management is to ensure that it maintains a strong credit rating and
healthy capital ratios in order to support its business and maximise shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions.
To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return
capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes
during the years ended 31 December 2014 and 2013.
The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The
Groups policy is to keep the gearing ratio at reasonable level. The Group includes within net debt, loans and
borrowings, trade and other payables, less cash and bank balances.
The gearing ratios as at 31 December 2014 and 31 December 2013 are as follows:
Note
Group
2014
RM000
2013
RM000
Company
2014
2013
RM000
RM000
248,774
101,890
(138,592)
192,718
104,180
(36,892)
239,416
131,905
(129,235)
181,080
120,044
(29,721)
Net debt
212,072
260,006
242,086
271,403
160,958
175,672
145,733
153,775
373,030
435,678
387,819
425,178
57%
60%
62%
64%
Gearing ratio
25
26
24
136
Notes to the
financial statements
31 December 2014
For management purposes, the Group is organised into business units based on its products and services, and
has two reportable operating segments as follows:
I. Information technology
II. Mailing and document processing services
III. Television content (Discontinued)
No operating segments have been aggregated to form the above reportable operating segments.
Management monitors the operating results of its business units separately for the purpose of making decisions
about resource allocation and performance assessment. Segment performance is evaluated based on operating
profit or loss which, in certain respects as explained in the table below, is measured differently from operating
profit or loss in the consolidated financial statements. Group financing (including finance costs) and income taxes
are managed on a group basis and are allocated to operating segments accordingly.
Transfer prices between operating segments are at terms agreed between the parties during the financial year.
Geographical information
Revenue information based on the geographical location of the operations of the Group are as follows:
By country:
Malaysia
Australia
Indonesia
Group
2014
RM000
% of total
2013
RM000
% of total
450,785
4,722
5,952
98%
1%
1%
403,067
3,963
6,788
97%
1%
2%
461,459
100%
413,818
100%
137
www.heitech.com.my
Total segments
2014
2013
RM000
RM000
Adjustments and
eliminations
2014
2013
RM000
RM000
Revenue:
External sales
Other income
Inter-segment Total
425,419
7,057
278,623
379,125
14,918
276,914
36,040
190
34,693
340
40
461,459
7,247
278,623
413,858
15,258
276,914
(40)
(5,357)
(278,623) (276,914)
Total
711,099
670,957
36,230
35,033
40
747,329
706,030
(278,623) (282,311)
(6,751)
1,364
(6,788)
460
(638)
18
(475)
14
(4)
(7,389)
1,382
(7,267)
474
(9,734)
(6,427)
(2,474)
(2,457)
(11)
(12,208)
(8,895)
(13,601)
(13,252)
(2,188)
(1,160)
(15,789)
(12,273)
(31,013)
(469)
2,512
(4,240)
Results:
Finance costs
Interest income
Depreciation and
amortisation
Other non-cash
expenses
Share of results of
associates
Loss before tax
Notes
Consolidated financial
statements
2014
2013
RM000
RM000
461,459
7,247
413,818
9,901
468,706
423,719
(7,389)
1,382
(7,263)
474
11
(12,208)
(8,884)
(14,412)
(15,789)
(14,412)
(12,742)
(32,741)
(8)
2,795
652
1,303
(8)
(9,947)
652
(31,438)
4,089
4,097
Assets:
Investment in
associates
Additions to noncurrent assets
Segment assets
4,089
4,097
4,089
4,097
13,633
586,156
11,434
509,136
1,375
58,134
2,057
59,655
15,008
644,290
13,491
568,791
(124,895)
(88,504)
D
E
15,008
519,395
13,491
480,287
Liabilities:
Segment liabilities
414,202
324,794
24,225
25,871
438,427
350,665
(85,661)
(50,434)
352,766
300,231
138
Notes to the
financial statements
31 December 2014
ature of adjustments and eliminations to arrive at amounts reported in the consolidated financial
N
statements.
Other material non-cash expenses consist of the following items as presented in the respective notes to
the financial statements:
Note
Impairment loss on goodwill
Write off of gross amount due from customer
Impairment loss on available-for-sale financial assets
Impairment loss on trade and other receivables
Reversal of impairment loss on receivables
9
9
9
9
9
2014
RM000
2,188
13,007
2,342
(1,748)
1,878
13,932
(1,398)
15,789
14,412
The following items are added to/(deducted from) segment profit to arrive at (loss)/profit before tax
from continuing operations presented in the consolidated statement of comprehensive income:
2014
RM000
Revenue from intersegment
Expenses from intersegment
Share of results of associates
2013
RM000
(5,794)
8,597
(8)
(5,357)
6,008
652
2,795
1,303
2014
RM000
2013
RM000
10,539
4,469
7,340
6,151
15,008
13,491
2013
RM000
The following item is deducted from segment assets to arrive at total assets reported in the consolidated
statement of financial position:
Inter-segment assets
2014
RM000
2013
RM000
(124,895)
(88,504)
139
www.heitech.com.my
ature of adjustments and eliminations to arrive at amounts reported in the consolidated financial
N
statements.
The following item is deducted from segment liabilities to arrive at total liabilities reported in the
consolidated statement of financial position:
Inter-segment liabilities
2014
RM000
2013
RM000
(85,661)
(50,434)
The financial statements for the year ended 31 December 2014 were authorised for issue in accordance with a
resolution of the directors on 20 April 2015.
The breakdown of the retained earnings of the Group and of the Company as at 31 December 2014 into realised
and unrealised profits is presented in accordance with the directive issued by Bursa Malaysia Securities Berhad
dated 25 March 2010 and prepared in accordance with Guidance on Special Matter No. 1, Determination of
Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities
Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants.
Group
2014
RM000
Total retained earnings of the Company
and its subsidiaries
Realised
Unrealised
2013
RM000
Company
2014
2013
RM000
RM000
25,645
(394)
32,463
(907)
27,982
35,440
584
25,251
31,556
27,982
36,024
4,089
4,097
29,340
17,443
35,653
21,604
27,982
36,024
46,783
57,257
27,982
36,024
140
LIST OF
PROPERTIES
as at 31 December 2014
Land/
Build-up
Area
Current Usage
Land/
Tenure
Net Book
Value as at
31.12.2014
Date of
Revaluation
Location
Description
No. 1 Jalan
U8/81, Seksyen
U8, Bukit Jelutong,
40150 Shah Alam,
Selangor Darul
Ehsan.
HS (D) 142708,
P.T. No. 17653,
Mukim Damansara,
Daerah Petaling,
Selangor Darul
Ehsan.
210,830.4
Sq. Ft.
HeiTech Village
2 World Class
Data Center
and business
premise
Freehold
RM7.38
Million
7 March
2013
Cyberjaya
0.4815
hectares
Vacant Land
Freehold
RM2.52
Million
7 March
2013
141
www.heitech.com.my
ANALYSIS OF
SHAREHOLDINGS
DIRECTORS SHAREHOLDINGS
as at 20 April 2015
NO
TOTAL
SHAREHOLDINGS
NAME OF DIRECTORS
7,820,184
TAN SRI DATO SRI ABI MUSA ASAARI BIN MOHAMED NOR
12,500
Total
7,832,684
SUBSTANTIAL SHAREHOLDERS
as at 20 April 2015
NO
NAME
ID NUMBER
NO. OF SHARES/
SECURITIES
HOLDING
PERCENTAGE
37645P
30,330,000
29.9629
038218X
27,879,500
27.542
58,209,500
57.5049
Total
SIZE OF SHAREHOLDINGS
HOLDER
PERCENTAGE
NO. OF
SHARES/
SECURITIES
HOLDING
PERCENTAGE
99
218
7.543
9,577
0.009
100
1,000
418
14.464
312,714
0.309
1,001
10,000
1,727
59.758
6,786,299
6.704
10,001
100,000
463
16.021
13,806,232
13.639
100,001
5,061,259
62
2.145
22,100,878
21.834
5,061,260
and above
0.069
58,209,500
57.505
2,890
100
101,225,200
100
Total
142
ANALYSIS OF
SHAREHOLDINGS
SHARES
PERCENTAGE
NAME
ABB NOMINEE (TEMPATAN) SDN BHD
PLEDGED SECURITIES ACCOUNT FOR PADUJADE CORPORATION SDN BHD
30,330,000
29.962
27,879,500
27.542
4,465,400
4.411
1,700,300
1.679
1,334,484
1.318
1,287,600
1.272
1,012,045
0.999
1,000,000
0.987
894,889
0.884
10
500,795
0.494
11
404,300
0.399
12
360,190
0.355
13
346,000
0.341
14
339,681
0.335
15
320,000
0.316
16
304,300
0.300
17
282,400
0.278
18
280,000
0.276
19
262,700
0.259
20
252,405
0.249
21
250,000
0.246
22
246,174
0.243
23
244,800
0.241
24
240,000
0.237
25
207,200
0.204
26
LEE OI KUM
205,000
0.202
27
191,028
0.188
28
190,700
0.188
29
187,500
0.185
30
181,400
0.179
75,700,791
74.784
Total
FORM OF
PROXY
CDS Account
No. of Shares held
I/We
of
IC No.
(FULL ADDRESS)
IC No.
of
or failing him/her, the Chairman of the meeting as my/our proxy to attend and vote for me/us on my/our behalf at the Twentieth
(20th) Annual General Meeting of the Company to be held at Ballroom Selangor 1, Grand Dorsett Subang Hotel, Jalan SS 12/1, 47500
Subang Jaya, Selangor Darul Ehsan, Malaysia on Wednesday, 17 June 2015, at 10.30 a.m. or any adjournment thereof.
The proxy is to vote on the resolutions set in the Notice of Meeting as indicated with an X in the appropriate space below. If no
specific direction as to voting is given, the proxy will vote or abstain at his discretion.
RESOLUTIONS
FOR
RESOLUTION 1
To receive and adopt the Audited Financial Statements of the Company for the financial
year ended 31 December 2014 together with the Reports of Directors and Auditors.
RESOLUTION 2
RESOLUTION 3
RESOLUTION 4
RESOLUTION 5
RESOLUTION 6
RESOLUTION 7
RESOLUTION 8
To approve the payment of Directors Fees for the financial year ended 31 December 2014.
RESOLUTION 9
To re-appoint Messrs. Hanafiah Raslan & Mohamad as Auditors for the ensuing year
and to authorise the Directors to fix the remuneration of the Auditors.
RESOLUTION 10
RESOLUTION 11
To approve the Proposed Renewal of Shareholders Mandate for Recurrent Related Party
Transactions of Revenue or Trading Nature.
Dated this
AGAINST
, 2015
Signature of Member or Affix Common Seal
Notes:
1.
3.
2.
A Member shall not be entitled to appoint more than two (2) proxies to
attend and vote at the Meeting provided that where a member is an
authorised nominee as defined in accordance with the provisions of the
Securities Industry (Central Depositories) Act, 1991, it may appoint up to
two (2) proxies in respect of each Securities Account it holds with ordinary
shares in the Company standing to the credit of the Securities Account.
Fold here
AFFIX STAMP
Share Registrar
Tricor Investor & Issuing House
Services Sdn. Bhd.
(formerly known as Equiniti Services Sdn. Bhd.)
Fold here
www.heitech.com.my