AIGT SG 2020 (2nd Draft)

PRELIMINARY DRAFT
For Discussion Purposes

Subject to Changes
AIG TECHNOLOGIES (MALAYSIA) SDN. BHD.

(SINGAPORE BRANCH)
(Registered in Singapore. Registration Number: T11FC0174G)
ANNUAL REPORT
For the financial year ended 31 December 2020
1119A1/zu
PRELIMINARY DRAFT
Subject to Changes

(SINGAPORE BRANCH)
(Registered in Singapore. Registration Number: T11FC0174G)
ANNUAL REPORT
Contents
Page
Statement by Chief Executive 1
Independent Auditor’s Report 2-4
Statement of Comprehensive Income arising out of 5

Operations in Singapore
Statement of Assets used in and Liabilities arising out of 6

Operations in Singapore
Statement of Changes in Head Office Account 7
Statement of Cash Flows 8
Notes to the Financial Statements 9 - 25

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Subject to Changes
AIG TECHNOLOGIES (MALAYSIA) SDN. BHD. (SINGAPORE BRANCH)
STATEMENT BY CHIEF EXECUTIVE

I, Andrew Simon Gascoigne, the Director primarily responsible for the financial
management of AIG Technologies (Malaysia) Sdn. Bhd. (Singapore Branch) (the
“Branch”), state that, in my opinion, the accompanying statement of comprehensive
income, statement of assets used in and liabilities arising out of operations in Singapore,
statement of changes in Head Office account and statement of cash flows, together with
the notes therein are properly drawn up in accordance with the provisions of the
Singapore Companies Act, Cap. 50 and Singapore Financial Reporting Standards, so as
to give a true and fair view of the financial position of the Branch’s operations in
Singapore as at 31 December 2020, and of the results, changes in Head Office account
and cash flows of the Branch’s operations in Singapore for the financial year ended 31
December 2020.
At the date of this statement, there are reasonable grounds to believe that the Branch will
be able to pay its debt as and when they fall due.
ANDREW SIMON GASCOIGNE

DIRECTOR
SINGAPORE
[ ]
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INDEPENDENT AUDITOR’S REPORT TO
Report on the Audit of the Financial Statements
Our opinion
In our opinion, the accompanying financial statements of the Singapore Operations of AIG
Technologies (Malaysia) Sdn. Bhd. (“the Branch”) are properly drawn up in accordance
with the provisions of the Companies Act, Chapter 50 (“the Act”) and Financial Reporting
Standards in Singapore (“FRSs”) so as to give a true and fair view of the assets used in,
and liabilities arising out of, the Branch’s operations in Singapore as at 31 December
2020, and of the results, changes in Head Office account and cash flows of the Branch’s
operations in Singapore for the year ended on that date.
What we have audited
The Branch is a segment of AIG Technologies (Malaysia) Sdn. Bhd. and is not a
separately incorporated legal entity. The accompanying financial statements, which we
have audited pursuant to section 373 of the Act, have been prepared from the records of
the Branch and reflect only transactions recorded therein and comprise:
• the statement of comprehensive income arising out of operations in Singapore for the
year ended 31 December 2020;
• the statement of assets used in and liabilities arising out of the operations in
Singapore as at 31 December 2020;
• the statement of changes in Head Office account for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements, including a summary of significant accounting
policies.
Basis for Opinion
We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”).

Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independence
We are independent of the Branch in accordance with the Accounting and Corporate
Regulatory Authority Code of Professional Conduct and Ethics for Public Accountants and
Accounting Entities (“ACRA Code”) together with the ethical requirements that are
relevant to our audit of the financial statements in Singapore, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the ACRA Code.
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Other Information
The Branch’s management is responsible for the other information. The other information
comprises the Statement by Chief Executive but does not include the financial statements
and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Directors for the Financial Statements
The Branch’s management is responsible for the preparation of financial statements that
give a true and fair view in accordance with the provisions of the Act and FRSs, and for
devising and maintaining a system of internal accounting controls sufficient to provide a
reasonable assurance that assets are safeguarded against loss from unauthorised use or
disposition; and transactions are properly authorised and that they are recorded as
necessary to permit the preparation of true and fair financial statements and to maintain
accountability of assets.
In preparing the financial statements, the Branch’s management is responsible for

assessing the Branch’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Branch or to cease operations, or has no
realistic alternative but to do so.
The responsibilities of the directors of AIG Technologies (Malaysia) Sdn. Bhd. include
overseeing the Branch’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis
of these financial statements.
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Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
As part of an audit in accordance with SSAs, we exercise professional judgement and

maintain professional scepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
 Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Branch’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
 Conclude on the appropriateness of the Branch’s management’s use of the going
concern basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant doubt
on the Branch’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor’s report. However, future events or conditions may cause the Branch to cease
to continue as a going concern.
 Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We communicate with the Branch’s management regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
Report on Other Legal and Regulatory Requirements
In our opinion, the accounting and other records examined by us relating to the Branch’s
operations in Singapore have been properly kept in accordance with the provisions of the
Act.
PricewaterhouseCoopers LLP
Public Accountants and Chartered Accountants
Singapore, [ ]
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STATEMENT OF COMPREHENSIVE INCOME ARISING OUT OF OPERATIONS IN

SINGAPORE
Notes 2020 2019

RM RM
Service revenue 14,089,221 17,203,702

Cost of sales 4 (13,634,484) (16,160,686)
Gross profit 454,737 1,043,016
Other losses - net 5 (67,483) (56,201)
Profit before income tax 387,254 986,815
Income tax expense 6 - (214,410)
Profit after tax 387,254 772,405
The accompanying notes form an integral part of these financial statements.
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STATEMENT OF ASSETS USED IN AND LIABILITIES ARISING OUT OF

OPERATIONS IN SINGAPORE
As at 31 December 2020
Notes 2020 2019

RM RM
ASSETS
Current asset
Prepayments 400,268 688,936
Deferred income tax assets 9 167,759 167,759
568,027 856,695
Non-current asset
Property, plant and equipment 7 12,968,707 14,172,522
Right-of-use assets 8 1,054,409 4,581,226
Deferred income tax assets 9 1,897,782 1,897,782
Total assets 16,488,925 21,508,225
LIABILITY
Current liability
Trade and other payables 10 3,808,476 5,584,026
Lease liabilities 8 1,080,382 3,606,639
4,888,858 9,190,665
Non-Current liability
Lease liabilities 8 - 1,104,747
Total liabilities 4,888,858 10,295,412
NET ASSETS 11,600,067 11,212,813
Represented by:
Head Office account 11,600,067 11,212,813
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STATEMENT OF CHANGES IN HEAD OFFICE ACCOUNT

Head Office Account
Accumulated
Profit
RM
Balance as at 1 January 2020 11,212,813
Total comprehensive income 387,254
Balance as at 31 December 2020 11,600,067
Balance as at 1 January 2019 10,440,408
Total comprehensive income 772,405
Balance as at 31 December 2019 11,212,813
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STATEMENT OF CASH FLOWS

Notes 2020 2019

RM RM
Cash flows from operating activities

Profit after tax 387,254 772,405
Adjustments for:
- Income tax expense - 214,410
- Depreciation of property, plant and equipment 7 5,786,843 8,032,743
- Depreciation of right-of-use assets 4 3,485,751 3,503,616
- Unrealised loss on foreign exchange 27,156 -
- Finance cost 4 98,048 223,510
9,785,052 12,746,684
Changes in working capital:

- Prepayments 288,670 400,330
- Payables to Head Office (1,616,593) (4,727,172)
- Other accruals (188,162) (1,027,005)
Net cash generated from operating activities 8,268,967 7,392,837
Cash flows from investing activity

Additions to property, plant and equipment 7 (4,583,028) (3,795,871)
Net cash used in investing activity (4,583,028) (3,795,871)
Cash flows from financing activity

Principal repayment of lease liabilities (3,587,891) (3,373,455)
Finance cost 4 (98,048) (223,510)
Net cash used in financing activity (3,685,939) (3,596,965)
Net increase/(decrease) in cash and cash equivalents - -

Cash and cash equivalents at beginning of financial year - -
Cash and cash equivalents at end of financial year - -
Reconciliation of liabilities arising from financing activities
Non-cash changes
Unrealised
Principal loss on
Addition to and interest foreign Interest 31
1 January provision payments exchange Expenses December
RM RM RM RM RM RM
Lease liabilities
2020 4,711,386 - (3,685,939)(43,113) 98,048 1,080,382
Note: The Branch does not maintain any bank balances as all transactions are funded via
payable balances with the Head Office.
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NOTES TO THE FINANCIAL STATEMENTS

These notes form an integral part of and should be read in conjunction with the
accompanying financial statements.
1. General information
AIG Technologies (Malaysia) Sdn. Bhd. (Singapore branch) is a Branch of AIG

Technologies (Malaysia) Sdn. Bhd. The Branch is incorporated and domiciled in
Singapore. The address of its registered office is 6 Eu Tong Sen Street, #10-15,
Singapore 059817.
The principal activities of the Branch are the provision of information technology
and computer service activities to its related entities. The address of the principal
place of operation is 6 Eu Tong Sen Street, #10-15, Singapore, 059817.
2. Significant accounting policies
2.1 Basis of preparation
These financial statements are prepared in accordance with Singapore Financial

Reporting Standards (“FRS”) under the historical cost convention, except as
disclosed in the accounting policies below.
The preparation of these financial statements in conformity with FRS requires

management to exercise its judgement in the process of applying the Branch’s
accounting policies. It also requires the use of certain critical accounting estimates
and assumptions. The areas involving a higher degree of judgement or
complexity, or areas where estimates and assumptions are significant to the
financial statements are disclosed in Note 3.
Interpretations and amendments to published standards effective in 2020
On 1 January 2020, the Branch adopted the new or amended FRS and
Interpretations of FRS (“INT FRS”) that are mandatory for application for the
financial year. Changes to the Branch’s accounting policies have been made as
required, in accordance with the transitional provisions in the respective FRS and
INT FRS.
The adoption of these new or amended FRS and INT FRS did not result in
substantial changes to the Branch’s accounting policies and had no material effect
on the amounts reported for the current or prior financial years.
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2. Significant accounting policies (continued)
2.1 Basis of preparation (continued)
Interpretations and amendments to published standards effective in 2020

(continued)
 Amendments to FRS 1 Presentation of Financial Statements and FRS 8
Accounting Policies, Changes in Accounting Estimates and Errors
(Definition of Material)
 Amendments to FRS 103 Business Combinations (Definition of a
Business)
 Amendments to FRS 109 Financial Instruments, FRS 39 Financial
Instruments: Recognition and Measurement and FRS 107 Financial
Instruments: Disclosures (Interest Rate Benchmark Reform)
 Amendments to Conceptual Framework for Financial Reporting
2.2 Revenue from contract with customers
Revenue which represents income arising in the course of the Branch’s ordinary
activities is recognised by reference to each distinct performance obligation
promised in the contract with customer when or as the Branch transfers the
control of the goods or services promised in a contract and the customer obtains
control of the goods or services. Depending on the substance of the respective
contract with customer, the control of the promised goods or services may transfer
over time or at a point in time.
A contract with customer exists when the contract has commercial substance, the
Branch and its customer has approved the contract and intend to perform their
respective obligations, the Branch’s and the customer’s rights regarding the goods
or services to be transferred, and it is probable that the Branch will collect the
consideration to which it will be entitled to in exchange of those goods or services.
Specific revenue recognition criteria for the Branch’s activities are as described
below:
Rendering of services
Revenue arising from provision of information technology and computer service

activities are recognised when the services are rendered and the related parties
receive the benefits provided by the Branch.
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2.3 Employee compensation
Employee benefits are recognised as an expense, unless the cost qualifies to be

capitalised as an asset.
(a) Defined contribution plans
Defined contribution plans are post-employment benefit plans under which

the Branch pays fixed contributions into separate entities such as the
Central Provident Fund on a mandatory, contractual or voluntary basis.
The Branch has no further payment obligations once the contributions
have been paid.
(b) Employee leave entitlement
Employee entitlements to annual leave are recognised when they accrue

to employees. A provision is made for the estimated liability for annual
leave as a result of services rendered by employees up to the balance
sheet date.
2.4 Leases
At the inception of the contract, the Branch assesses if the contract contains a
lease. A contract contains a lease if the contract convey the right to control the
use of an identified asset for a period of time in exchange for consideration.
Reassessment is only required when the terms and conditions of the contract are
changed.
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2.4 Leases (continued)
• Right-of-use assets
The Branch recognised a right-of-use asset and lease liability at the date
which the underlying asset is available for use. Right-of-use assets are
measured at cost which comprises the initial measurement of lease
liabilities adjusted for any lease payments made at or before the
commencement date and lease incentive received. Any initial direct costs
that would not have been incurred if the lease had not been obtained are
added to the carrying amount of the right-of-use assets.
The right-of-use asset is subsequently depreciated using the straight-line

method from the commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of the lease term.
• Lease liabilities
Lease liability is measured at amortised cost using the effective interest

method. Lease liability shall be remeasured when:
- There is a change in future lease payments arising from changes in an

index or rate;
- There is a change in the Branch’s assessment of whether it will
exercise an extension option; or
- There is modification in the scope or the consideration of the lease that
was not part of the original term.
Lease liability is remeasured with a corresponding adjustment to the right-

of-use asset or is recorded in profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero.
• Short-term and low-value leases
The Branch has elected to not recognised right-of-use assets and lease
liabilities for short-term leases that have lease terms of 12 months or less
and leases of low value leases. Lease payments relating to these leases
are expensed to profit or loss on a straight-line basis over the lease term.
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2.5 Income taxes
Current income tax for current and prior periods is recognised at the amount
expected to be paid to or recovered from the tax authorities, using the tax rates
and tax laws that have been enacted or substantively enacted by the balance
sheet date.
Deferred income tax is recognised for all temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial
statements except when the deferred income tax arises from the initial recognition
of an asset or liability that affects neither accounting nor taxable profit or loss at
the time of the transaction.
Deferred income tax is measured at the tax rates that are expected to apply when
the related deferred income tax asset is realised or the deferred income tax
liability is settled, based on tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
Current and deferred income taxes are recognised as income or expenses in

profit or loss, except to the extent that the tax arises from a transaction which is
recognised directly in equity.
The Branch accounts for investment tax credits (for example, productivity and
innovative credit) similar to accounting for other tax credits where deferred tax
asset is recognised for unused tax credits to the extent that it is probable that
future taxable profit will be available against which the unused tax credit can be
utilised.
2.6 Property, plant and equipment
Property, plant and equipment are recognised at cost less accumulated

depreciation and accumulated impairment losses (Note 2.7).
Subsequent expenditure relating to property, plant and equipment that has

already been recognised is added to the carrying amount of the asset only when it
is probable that future economic benefits associated with the item will flow to the
Branch and the cost of the item can be measured reliably. All other repair and
maintenance expenses are recognised in profit or loss when incurred.
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2.6 Property, plant and equipment (continued)
Depreciation is calculated using the straight-line method to allocate depreciable

amounts over their estimated useful lives.
Useful lives
Leasehold buildings 1 to 4 years

Computer equipment 3 to 7 years
Office equipment 3 to 5 years
The residual values, estimated useful lives and depreciation method of property,
plant and equipment are reviewed, and adjusted as appropriate, at each balance
sheet date. The effects of any revision are recognised in profit or loss when the
changes arise.
2.7 Impairment of non-financial assets
Property, plant and equipment and right-of-use assets are reviewed for
impairment whenever there is any objective evidence or indication that these
assets may be impaired.
For the purpose of impairment testing of assets, recoverable amount (i.e. the
higher of the fair value less cost to sell and the value-in-use) is determined on an
individual asset basis unless the asset does not generate cash flows that are
largely independent of those from other assets. If this is the case, the recoverable
amount is determined for the cash-generating unit (CGU) to which the asset
belongs.
If the recoverable amount of the asset is estimated to be less than its carrying
amount, the carrying amount of the asset is reduced to its recoverable amount.
The difference between the carrying amount and recoverable amount is

recognised as an impairment loss in profit or loss.
An impairment loss for an asset is reversed if, and only if, there has been a
change in the estimates used to determine the asset’s recoverable amount since
the last impairment loss was recognised. The carrying amount of this asset is
increased to its revised recoverable amount, provided that this amount does not
exceed the carrying amount that would have been determined (net of
accumulated depreciation) had no impairment loss been recognised for the asset
in prior years.
A reversal of impairment loss for an asset is recognised in profit or loss.
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2.8 Trade and other payables
Trade and other payables represent liabilities for goods and services provided to
the Branch prior to the end of the financial year which are unpaid. They are
classified as current liabilities if payment is due within one year or less (or in the
normal operating cycle of the business, if longer). Otherwise, they are presented
as non-current liabilities.
Trade and other payables are recognised initially at fair value, and subsequently
carried at amortised cost using the effective interest method.
2.9 Provision for other liabilities and charges
Provisions for other liabilities and charges are recognised when the Branch has a
present legal or constructive obligation as a result of past events, it is more likely
than not that an outflow of resources will be required to settle the obligation and
the amount has been reliably estimated.
2.10 Currency translation
The financial statements are presented in Malaysia Ringgit, which is the functional
currency of the Branch.
Transactions in a currency other than the functional currency (“foreign currency”)

are translated into functional currency using the exchange rates at the dates of the
transactions. Currency exchange differences resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities
denominated in foreign currencies at the closing rates at the balance sheet date
are recognised in profit or loss.
All other foreign exchange gains and losses impacting profit or loss are presented
in the income statement within “other losses – net”.
2.11 Financial assets
Classification
The financial assets mainly comprise of deposits and other receivables. The
Branch classifies its financial assets to be measured at amortised cost.
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2.11 Financial assets (continued)
Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-
date, the date on which the Branch commits to purchase or sell the asset.
Financial assets are derecognised when the rights to receive cash flows from the
financial assets have expired or have been transferred and the Branch has
transferred substantially all the risks and rewards of ownership.
Measurement
At initial recognition, the Branch measures financial assets at its fair value. A gain
or loss on financial assets is recognised in profit or loss when the assets is
derecognised or impaired.
Subsequent measurement – Impairment
Debt instrument
Debt instruments of the Branch mainly comprise of trade receivables and loan to
related corporation.
There are three prescribed subsequent measurement categories, depending on

the Branch’s business model in managing the assets and the cash flow
characteristic of the assets. The Branch managed these group of financial assets
by collecting the contractual cash flow and these cash flows represents solely
payment of principal and interest. Accordingly, these group of financial assets are
measured at amortised cost subsequent to initial recognition.
A gain or loss on a debt investment that is subsequently measured at amortised

cost and is not part of a hedging relationship is recognised in profit or loss when
the asset is derecognised or impaired. Interest income from these financial assets
are recognised using the effective interest rate method.
The Branch assesses on forward looking basis the expected credit losses
associated with its debt instruments carried at amortised cost.
At each reporting date, the Branch assesses on whether there is objective

evidence that a financial asset or a group of financial assets is impaired and
recognises an allowance for impairment when such evidence exists. Significant
financial difficulties of the debtor, probability that the debtor will enter bankruptcy
and default or significant delay in payments are objective evidence that these
financial assets are impaired.
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2.11 Financial assets (continued)
Subsequent measurement – Impairment (continued)
The Branch applies FRS 109 simplified approach to measure expected credit
losses associated with financial assets. Under this approach, the credit losses
expected over the life of the financial assets are recognised at each reporting
date.
A provisional matrix is used when calculating expected credit loss for trade
receivables. The provisional matrix applied by the Branch to calculate the trade
receivable bad debt provision is as follows :
- Items aged over 365 days are provided at 100%

- Items aged between 180-365 days are provided for at 50%
- Other items are considered on a case by case basis to understand if there
is a specific reason to warrant provision (broker insolvency, legal
collection, cancellation etc).
The matrix needs to be reviewed as at each reporting date to ensure that it

adequately reflects how credit conditions are likely to change in the future.
Write-off
(i) Trade receivables
Trade receivables are written off when there is no reasonable expectation

of recovery. Indicators that there is no reasonable expectation of recovery
include, amongst others, the failure of a debtor to engage in a repayment
plan with the Branch and a failure to make contractual payments for a
period of greater than 365 days past due.
Impairment losses on trade receivables are presented as net impairment

losses within other operating expenses. Subsequent recoveries of
amounts previously written off are credited against the same line item.
(ii) Other receivables
The Branch writes off financial assets, in whole or in part, when it has
exhausted all practical recovery efforts and has concluded there is no
reasonable expectation of recovery. The assessment of no reasonable
expectation of recovery is based on unavailability of debtor’s sources of
income or assets to generate sufficient future cash flows to repay the
amount. The Branch may write-off financial assets that are still subject to
enforcement activity. Subsequent recoveries of amounts previously written
off will result in impairment gains.
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3. Critical accounting estimates, assumptions and judgements
Estimates, assumptions and judgements are continually evaluated and are based
on historical experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances.
Uncertain tax positions
The Branch’s tax charge on ordinary activities is the sum of the total current and
deferred tax charges in Singapore. The calculation of the Branch’s total tax charge
necessarily involves a degree of estimation and judgement in respect of certain
items whose tax treatment cannot be finally determined until resolution has been
reached with the relevant tax authority.
4. Expenses by nature
2020 2019
RM RM
Note
Depreciation of property, plant and equipment 7 5,786,843 8,032,743

Depreciation on right-of-use assets 3,485,751 3,503,616
Data processing and related expenses 4,114,396 3,642,166
Office insurance (7,779) 110,471
Communications 70,967 522,857
Other expenses 86,258 125,323
Finance cost 98,048 223,510
Total cost of sales 13,634,484 16,160,686
5. Other losses – net
2020 2019
RM RM
Net currency translation losses (67,483) (56,201)

(67,483) (56,201)
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6. Income taxes
Income tax expense
2020 2019
RM RM
Note
Tax expense attributable to profit is made up of:
- Current income tax -
- Deferred income tax 9 214,410
214,410
The tax on profit before tax differs from the theoretical amount that would arise
using the Singapore standard rate of income tax as follows:
2020 2019
RM RM
Profit before tax 387,254 986,815
Tax calculated at tax rate of 17% (2019: 17%) 65,833 167,759

Effects of:
- income not taxable/deductible for tax purpose (100,062)
- utilisation of capital allowances 146,713
Tax charged 214,410
7. Property, plant and equipment
Computer Office
equipment equipment Total
RM RM RM
2020
Cost
Beginning of financial year 61,123,914 3,039,204 64,163,118
Additions 4,409,813 173,215 4,583,028
End of financial year 65,533,727 3,212,419 68,746,146
Accumulated depreciation
Depreciation charge (Note 4) 5,397,702 389,141 5,786,843
Net book value

End of financial year 12,585,501 383,206 12,968,707
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7. Property, plant and equipment (continued)
Computer Office
equipment equipment Total
RM RM RM
2019
Cost
Additions 3,593,575 202,296 3,795,871
Accumulated depreciation
Depreciation charge (Note 4) 7,556,998 475,745 8,032,743
Net book value

End of financial year 13,573,390 599,132 14,172,522
8. Right-of-use assets / Lease liabilities
Nature of the Branch’s leasing activities
The Branch leases data centre for the purpose of business operations. There are
no externally imposed covenants on this lease arrangement.
31 December 31 December
2020 2019
RM RM
Right-of-use assets 1,054,409 4,581,226
Lease liabilities 1,080,382 4,711,386
20
PRELIMINARY DRAFT
Subject to Changes

8. Right-of-use assets / Lease liabilities (continued)
2020 2019
RM RM
Depreciation 3 3
Interest expense on lease liabilities 98 223
Lease expense not capitalised in lease liabilities:
Short term lease items not capitalised in lease liabilities 35

Contracts reassessed as service agreements 12 3
Total 12 38
Cash outflow from all leases in 2020 3 3
9. Deferred income taxes
Deferred income tax assets to be recovered from the balance sheet date are as
follows:-
2020 2019
RM RM
To be recovered within one year (167,759)

To be recovered after one year (1,897,782)
(2,065,541)
Movement in deferred income tax account is as follows:-
2020 2019
RM RM
Beginning of financial year (2,065,541) (2,279,951)

Tax charged to profit or loss (Note 6) 214,410
End of financial year (2,065,541)
Deferred income tax assets are recognised for capital allowances carried forward
to the extent that realisation of the related tax benefits through future taxable
profits is probable. The Branch has net capital allowances of approximately
[ ] (2019: RM2,077,218) at the balance sheet date which can be brought
forward and used to offset against future taxable income subject to meeting
certain statutory requirements.
21
PRELIMINARY DRAFT
Subject to Changes

10. Trade and other payables
2020 2019
RM RM
Trade payables to Head Office 3,269,918 4,886,509
Other accruals for operating expenses 538,558 697,517

3,808,476 5,584,026
11. Financial risk management
Financial risk factors
The Branch’s activities expose it to market risk (including currency risk) and
liquidity risk.
The Branch has adopted the Board approved risk management policies and
strategies of its Head Office - AIG Technologies (Malaysia) Sdn. Bhd. The overall
risk management strategy seeks to minimise adverse effects from the
unpredictability of financial markets on the Branch’s financial performance.
(a) Market risk
(i) Currency risk
The Branch’s business is exposed to the United States Dollar (“USD”) as

significant purchases are denominated in USD. Exchange rate risk arises
from the fluctuation of exchange rates. The Branch has taken necessary
steps to minimise this impact.
The Branch’s currency exposure to the USD is as follows:
2020 2019
RM RM
Financial liability
Trade and other payables 3,808,476 5,584,026
Net currency exposure 3,808,476 5,584,026
At 31 December 2020, if the USD had weakened by 5% against the

Branch’s functional currency, Ringgit Malaysia, with all other variables
including tax rate being held constant, the Branch’s profit after tax for the
financial period would have been RM190,424 (2019: RM279,201) lower as
a result of currency translation gains/losses on the USD-denominated
financial instruments.
22
PRELIMINARY DRAFT
Subject to Changes

11. Financial risk management (continued)
(b) Liquidity risk
The table below analyses the undiscounted contractual cash flows payable under
the financial instruments as at the reporting date.
Less than More than

1 year 1 year Total
RM RM RM
2020
Trade and other payables 3,808,476 - 3,808,476
Lease liabilities 1,083,326 - 1,083,326
4,891,802 - 4,891,802
2019
Trade and other payables 5,584,026 - 5,584,026

Lease liabilities 3,704,959 1,109,173 4,814,132
9,288,985 1,109,173 10,398,158
(c) Capital risk
The Branch’s objectives when managing capital are to safeguard the Branch’s
ability to continue as a going concern and to maintain an optimal capital structure
so as to maximise shareholder value.
In order to maintain or achieve an optimal capital structure, the Head Office may
adjust the amount of funds transferred to and from the Branch.
The Branch is not subject to any externally imposed capital requirements.
(d) Financial instruments by category
The aggregate carrying amounts of financial liabilities at amortised cost are as

follows:
2020 2019
RM RM
Financial liabilities at amortised cost 4,888,858 10,295,412
23
PRELIMINARY DRAFT
Subject to Changes

12. Head office and ultimate holding corporation
The head office is AIG Technologies (Malaysia) Sdn Bhd, incorporated in

Malaysia. The ultimate holding corporation is American International Group, Inc.
incorporated in the United States of America.
13. Related party transactions
(a) Significant related party balances and transactions
In addition to the information disclosed elsewhere in the financial statement, the

following related party balance and transactions took place between the Branch
and related parties at terms agreed between the parties:
Significant related party balances
2020 2019
RM RM
Amount due to Head Office 3,808,476 7,997,783
Sales and purchase of services
2020 2019
RM RM
Rendering of services to Head Office 14,089,221 17,203,702
14. New or revised accounting standards and interpretations
Certain new accounting standards and interpretations have been published that
are not mandatory for 31 December 2020 reporting periods and have not been
early adopted by the Branch. These standards are not expected to have a material
impact on the Branch in the current or future reporting periods and on foreseeable
future transactions.
24
PRELIMINARY DRAFT
Subject to Changes

15. Significant event
In the first quarter 2020, the rapid spread of the Covid-19 has been declared a
pandemic. Globally, increasing measures are being taken to contain it and these
have led to a significant volatility in the financial markets and resulting in an
adverse impact on the global business and economic activity.
As the current situation is unprecedented, and it is very difficult to predict the

economic impact, the Branch is monitoring the situation closely and continues to
assess the impact on the earnings as the situation develops.

16. Authorisation of financial statements
These financial statements were authorised for issue by the Branch’s

management on [ ].
25

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PRELIMINARY DRAFT

For Discussion Purposes

AIG TECHNOLOGIES (MALAYSIA) SDN. BHD.

AIG TECHNOLOGIES (MALAYSIA) SDN. BHD.

Statement by Chief Executive 1

Independent Auditor’s Report 2-4

Statement of Comprehensive Income arising out of 5

Statement of Assets used in and Liabilities arising out of 6

Statement of Changes in Head Office Account 7

Statement of Cash Flows 8

Notes to the Financial Statements 9 - 25

AIG TECHNOLOGIES (MALAYSIA) SDN. BHD. (SINGAPORE BRANCH)

STATEMENT BY CHIEF EXECUTIVE

ANDREW SIMON GASCOIGNE

Report on the Audit of the Financial Statements

What we have audited

Basis for Opinion

We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”).

Responsibilities of Management and Directors for the Financial Statements

In preparing the financial statements, the Branch’s management is responsible for

Auditor’s Responsibilities for the Audit of the Financial Statements

Auditor’s Responsibilities for the Audit of the Financial Statements (continued)

As part of an audit in accordance with SSAs, we exercise professional judgement and

Report on Other Legal and Regulatory Requirements

AIG TECHNOLOGIES (MALAYSIA) SDN. BHD. (SINGAPORE BRANCH)

STATEMENT OF COMPREHENSIVE INCOME ARISING OUT OF OPERATIONS IN

Notes 2020 2019

Service revenue 14,089,221 17,203,702

Other losses - net 5 (67,483) (56,201)

Profit before income tax 387,254 986,815

Income tax expense 6 - (214,410)

Profit after tax 387,254 772,405

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

AIG TECHNOLOGIES (MALAYSIA) SDN. BHD. (SINGAPORE BRANCH)

STATEMENT OF ASSETS USED IN AND LIABILITIES ARISING OUT OF

Notes 2020 2019

Total assets 16,488,925 21,508,225

Lease liabilities 8 - 1,104,747

Total liabilities 4,888,858 10,295,412

NET ASSETS 11,600,067 11,212,813

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

AIG TECHNOLOGIES (MALAYSIA) SDN. BHD. (SINGAPORE BRANCH)

STATEMENT OF CHANGES IN HEAD OFFICE ACCOUNT

Head Office Account

Balance as at 1 January 2020 11,212,813

Total comprehensive income 387,254

Balance as at 31 December 2020 11,600,067

Balance as at 1 January 2019 10,440,408

Total comprehensive income 772,405

Balance as at 31 December 2019 11,212,813

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

AIG TECHNOLOGIES (MALAYSIA) SDN. BHD. (SINGAPORE BRANCH)

STATEMENT OF CASH FLOWS

Notes 2020 2019

Cash flows from operating activities

Changes in working capital:

Cash flows from investing activity

Cash flows from financing activity

Net increase/(decrease) in cash and cash equivalents - -

Reconciliation of liabilities arising from financing activities

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

AIG TECHNOLOGIES (MALAYSIA) SDN. BHD. (SINGAPORE BRANCH)

NOTES TO THE FINANCIAL STATEMENTS

AIG Technologies (Malaysia) Sdn. Bhd. (Singapore branch) is a Branch of AIG