Company No ‘7o2se0 | x KAWASAKI GAS TURBINE ASIA SDN BHD (corporate in Malaysia) [STATUTORY FINANCIAL STATEMENTS FORTHE FINANCIAL YEAR ENDED 31 DECEMBER 2017 318atramCompany No ‘2680 | x KAWASAKI GAS TURBINE ASIA SDN BHD. (neerported in Malye) DIRECTORS’ REPORT ‘The Directors hereby subi thelr report an the auted franca statements of the Company for the Manca year ended 31 Dovombe: 2017 OIRECTORS: ‘The Directs in offe ding te nan yoar and rng the paid rr the endo he financial oar tothe dale of be repot are: Tsuyosh Tort “Tokach Hayashi its Karna PRINCIPAL ACTIVITES ‘The Company is principal en impor and dlsbutot for gas turbine and its spare parts and sso engaged inthe rele naaiston and martonanceIncuing lca overnal servie, as well 3s Importation and daeton of water ler and gas engine. Thre nave been no signin changes int nature of thee actos ding the trancia yoar. FINANCIAL RESULTS Not ro forthe farsi yor RESERVES AND PROVISIONS ‘Al matt ransfere oor rom eserves an prolsions during the financial year are shown inthe Francia slatement. DIRECTORS’ BENERTS ‘Sines the end ofthe revous nc year, no Decor hes recived or bocome enfield to receive 3 benefit other tan he bons show under Dect’ Remuneration) by reason of a contact made by {he Company orby arated corporation with he Oxectr arith fm eich the Dieter isa member, trvitha company n whic the Decor hs substantial ancl iteretexcap thats cain Director ‘ecelva remunaeton as exeutve or Orecor of feiatad corporations Nether during nor at he and ofthe nail year Was the Company or any of is subsidiaries apt 0 ‘ny arrangements nose obfet was fo enable the Drocors to acqure beneis by means of the ‘aus of shares or debentrs of, the Company or any oer body corporateCompany No. ozo | x KAWASAKI GAS TURBINE ASIA SDN BHD (eorpavatd in Maat) DIRECTORS’ REPORT (CONTINUED) DIRECTORS INTERESTS IN SHARES ANO DEBENTURES. ‘Aecatng tothe Regter of Decors’ Sharcholings requied tobe kept uncer Secon 9 of he ‘Companies Ae, 208, none of he Dect wh Na oie atthe end ofthe franca year eld any ‘hares debentures in he Company or He holding corporation or subsidies ofthe holding arporatin dung te fancies. vineNo ‘No didend has been pai, declared or propotd by the Company since the end of tho proves {inandal yea. The Deewors co nol recommend ary dvidend fr the fhancal year ended ‘3 Deoanber 2017 DIRECTORS’ REMUNERATION Data of Dretor'remuneraton are sot out in Note 6 the anda statements ULTIMATE HOLDING CORPORATION. “he Drclors regard Kawaesl Heavy Industes Li, 2 corporation incerprsed in Japan, os the mate olin eororatin. OTHER STATUTORY INFORMATION (@) Before the fhandal statements ofthe Company were propared, the Doctors took reasonable tps (to ascortan that proper ston had been taken in relation to the wing of of bad {ebis and the making of provision fr doubt! debs ane sated themes thal fl kngum bag debs had boon wren off and tht adequate provison had bean ‘madolor dust debs; and (i) o-esure ha ny curent ssets, which were ual tobe realised in he orinary ‘Sates uf busine cating the values of Caertssosta so shown in te ‘Scouring records ofthe Company had boon writen down tan armour which Tie ‘Curetaosts might be expected so reals (©) Atthe cate ofthis pert, he Direcors are not aware of any crounstances: (0) when woud render the amounis writen off for ba debs oF the amount of fe provion for doubt dees adequate to any subst extent; oF (whieh would render the values stebuted to curent assots in tho financial ‘Satenonis ofthe Company misleading: oF (W) whieh nave arisen which would render adherence to the exsting method of ‘alton of assets or lates of tre Company misleading or Inappropriate‘Company No. ro2ee0 [ x KAWASAKI GAS TURBINE ASIA SON BHD (earpoate in Malaysia) DIRECTORS’ REPORT (CONTINUED) (OTHER STATUTORY INFORMATION (CONTINUED) (2) Attho date ofthis port (0) ther a0 no charges on the assots of he Company whic have arson since the ‘nd the fnancll yar which secures the lab of anyother peor, and W theroare no contingent bliin the Company which have risen since the end of hetinanca year (8) No contingen or oer labity cf the Compary has become enforceable ois hay to became enforceable win the paid of twee manths ate the ent of the nancial year ‘inh in the epon ofthe Director, wl or may affect aby of the Corey Yo moot ther gations when they fl ve. (©) Atthe date ofthis port the Detors are not aware of any crcumstances no otherwise ‘eal wih tha port or the nan tatemens othe Company which woud rndet any mount slaedn te tarcll statoments misting, (Inte opinionof he recor: () the rests ofthe operations ofthe Company during the Snancal year wore not Substntalyaflected by any em, eneneton or avert ofa malo and nual rise and (0) therohas not argon in the interval between the end of he fnancalyear and the ate of thi report any em, wansacton or avent of mati ard unusual naire Tel to affect substantial the resus of the operations ofthe Company fr the finands yearn which bi ep s 3b AUDITORS’ REMUNERATION Dota of utr’ renuneraton are stout in Not 6 tothe fnancal statementscompany No. Toaseo | x KAWASAKI GAS TURBINE ASIA SDN BHO (neorpoate in Masi) DIRECTORS’ REPORT (CONTINUED) Avorrors. “The autos, PrioewsternoussCoopers PLT (LLPOOTA4OL-LCA & AF 1146), have expressed ther Alingness 1 accept te sopantment as autos PrcowalemouseCocpers PLT (LLPODIAAOTA.CA & AF 1146) was registred on 2 January 2018 fd wi fect rom hat dale, PreewaterouseCocpers (AF 1146), a conventional partnership, Was converted toa tod Laity partnership. ‘This epont was approved bythe Board of Breciovson 2 Q JUN 2018 ‘Signed on bal of ne Board of Drectors: Kuala LimpurCompany No. roaseo | x KAWASAKI GAS TURBINE ASIA SDN BHD (becorpeated in Balsa) ‘STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 Note Revenue Costof sles ross proft ‘her operating income Administ expenses ‘ther opraing expenses Profeloss) om operations Firanos Income (et) Profs) before taxation Taxation Net profits fore ancl year Shenae om that wil ot beredassied subsequent to pot rss: Exchange ranlabonsierences Tota comprehensive incomes for ‘he nail year ‘The notes on pages 1010 31 orm an toga par of hes franca statment. 5 Patra eM 63,901,048 (60.938,086) 19054,960 2281818 rat,085) (18a, 7.20789 23218 434) 7.821.084 (075,008) (1883596) 281.808 78 co €8:35,702 o1201420) “et34273 ees. 7aeaa01) (6270736) ~as0.800) 75863 anaon (2526033) 07.140) (6,086,638) (10,783,778)oaseo | x KAWASAKI GAS TURBINE ASIA SDN BHD (incorporated in Masia) STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017 NON-CURRENT ASS: Plant and equipment Intangible asset Delered tax assets (CURRENT ASSETS Inventories Recelvabios ‘noun das fom inate hoding corporation ‘Amounts da om elu subeldaree Cash and bank baaneas LESS: CURRENT LBILITIES Payables Pour ue outinal haldngcorperation ‘Amounts dos tofolow subside Dent ancl nrumronts Tax payable NET CURRENT ASSETS CAPITAL AND RESERVES ‘Shae captal Retained earnings Fottgncofeneytansaten reserve “Th notes on pages 10 t0.1 form an negra pao these anc statemenis, Note ar Rit * 2008.215, 2 ‘20 cy 203,081 569.516 4 4396g0%3 33 seve a8 te “Sbross0 " “00.121 38 aero erate 42.978,102 3 soon ° 1,790,188 49,907276 2905876 27,193,301 2 5.000.000 pe0aias7 (@e708080) 28301 15241275, 30,72808 ° 1995.40, 53,657,821 3.983775 2802120 i708 aaaaad 35005285 od BTA 5 000,000, zee) (asoa3t0 “20761487SuoUaIES LEY) 95) YES IPOH UE WHO} 1 9 OF s9DEd UO SHOU IAL (coo 0 ° sevzsr's — cavo0rs ovo 000 coves §— oon 0 ° ° ° ° ° 2102 W3EW3030 1¢ GIONS MVS). WIONYNLA 3H HOS ‘ALIND NI SSONVHO JO INAWSLVIS qua Nas visy 2NIE x | ovszor | oR TTA‘company No 702680 KAWASAKI GAS TURBINE ASIA SDN BHD Alecerporate in Malaysia) STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 OPERATING ACTWTIES Net potiess) forth financial year Adjustments for Depreciation of plantand equipment Plant and ouipmentwiten of ‘Amartsation of nangbe assets Net urvealsed foreign exchange gain Fai va (gan) on derivative fanda nsruments Interest income ‘aration (Changes in working cpt: Recetas Payables eventos Imercompanis Tox pale Net cash Now fom opsaing stvitos INVESTING ACTIVITES, Purchase of plant and equipment Interest recated Purehaco of tangle acele Proceeds fom depos of ivesimont Net aeh fw frm nesting ation Note 2 4245430 200.072 3H 7604 (620,586) (1,708) (23285) 075,604 22.604 005.482 10,757,779 (650,188), "277 362 2iiaaort 2202873) 19801.496, (287228) 23218 ° (2040r1) (2,907,140) 3.208368 ‘388 (936.688) scat (73.683) 2626038 ‘8765962 e5a7t.ses 1\983.179 (485057) (67535064), 68,908, (2.358072) 5709836 (£98,175) 73688, e004) "23,000; (920486)‘company No, 702680 KAWASAKI GAS TURBINE ASIA SON BHD (incorporated in Malaysia) ‘STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 (CONTINUED) Note zai 2018 M FINANCING ACTIVITY Fepayment of re purchase Habily ° (29.206) Net ash ow fom fhancing tty ° (29.208) NET CHANGE IN CASH AND CASH EQUIVALENTS: seoa7aer 5.360058 ‘CASH AND CASH ECUIVALENTS AT ‘BEGINNING OF THE FINANCIAL YEAR roosaso 7.713887 EFFECTS ON EXCHANGE RATE CHANGES. (is0177 (6.37601) CCASH AND CASH ECUNVALENTS AT "END OF THE FINANCIAL YEAR 1824701390 © _7.605,440 “The noes on pages 1001 form an toga part of these franca statements.Company No, o2se0 [ x KAWASAKI GAS TURBINE ASIA SDN BHD (corporate in Malays) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2017 (GENERAL INFORMATION ‘Tha Company is pinay an importer and debibutor for gas turbine and its spare parts and sso Engaged in the related ietltion and maintenance lacing local overhaul servo, as well a ‘mporaton an dston of water boler ana gas engine. Thre have been no sarin chang ‘nthe naure of hes ates during he fran year. ‘The Directors regard Kawasaki Heavy Indusis Ld, a comporation incorporsid in Japan, as the timate hong eorpraton ‘The Company i pvt mite labity company, ncrpevated ans dom in Malays. ‘The adetess of the replete oie ofthe Company's 2 follows: Level 8, Syrphony House Block B73, Pusat Dagangan Dana 1 dain PAU N6 147501 Petaling aya The adtess of he prncpal plaoe of busnes of the Companys as flow: No 12A, Jalan Tang uso2 Sekayon U8, Bust Jong nasal Park 125180 Shah Alam Selangor {BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS ‘The financial statements ofthe Company have been prepares in accordance wth the Malaysian "Modied by the rancelasets ae franca abies (including dervaveinetumenis at fa valve ‘rough pro loss. ‘The preparation of han latements in confomiy with the MPERS requires the use of certain {rites accountng eelmates, Ils reques Decors to exercise Hs jgmant in tho process of ‘oping the Companys aooouning paces. Although these exiles are based onthe Dect’ teeNiMtutedge of euont eros seer, actu! reute nay der rom those estates The ‘reas involving hiner degras of ug or compleiy, over areas where sssumptons and ‘estimates are sigieant fo the than stalemenis ae decosed in Note 4 To the franca ‘Salemens, 0amptn me vous) [x] KAWASAKI GAS TURBINE ASIA SON BHD (inorpoatd in Masi) NOTES TO THE FINANCIAL STATEMENTS -31 DECEMBER 2017 (CONTINUED) SUMMARY OF SIGNFICANT ACCOUNTING POLICIES. (9) Plant and equpment Plant and equipment ae inal stated at ost, nt of amount of goods and serves tax (GST), excoptnre he amount af GST inoured i not racovorabio fom the goverment ‘Wan the arnt of GST inouted not recovereba ran tha goverment, the CST is recognized a part the cost of aczuilton af the plant ane equipment. The os ofan tem ‘pant and equipment iiiay recognised comprises ts purchase pie ad any cost hat is ‘eaty atibableo bringing the asset othe locaton and coeton necessary for tobe ‘apable of opting Inthe manner inded by Deters. ‘Me Inia cognition, plant and equipment ace slated st cost less accumulated depreciation ard any accumutatodimparment sss, ‘The Company ad 1 the carving mun ofan om of plant ae equipment the cost of replacing pat of seh an tem when thet cost ineured ho relacemor partic expected to provide ncemena fre tnefs ote Company. The crying amount ote replaced Dats derocomised. Al her pals ard maitanance are charged to proto loss éurng {he prod in which they are ered {plant and equlpment ae dprecotd using he straight ine mshod to alles tho cast of aso les er residual values over Pr estmated use Ives, ‘The eetmstoc uso hes range a8 flows Faure ‘year Neo voiles Sears fice equipment Sears Furtre and tings year Werkshap an dome equipment Syears Renovation 25ers ‘The asst’ ssid! values, uss lvos and depreciation methods ae reviewed, and dhsie prosmecvey appropriate, here Sn ndcatn of igiicat change since thelast armel reporting date 1X oooh ropsning deta, tho Company accoseee whether thar ie any indication of ‘iparmort If sych indication exits. analysis i performed to assess wher he {aryingamoun ofthe ascot sfuly recoverable. An asse'scarying mounts writen down lmmediately & ts recoverable amount f te assa's caring amount is greater tan is stmaled recoverable amount (see Note () en impairment of non-inanciel assets othor ‘han inverter). {Gains and losses on clposals are determined by comparing the proceeds withthe ening ‘sount ond er inaluded profit olesCompany No. KAWASAKI GAS TURBINE ASIA SDN BHD (corporate in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2017 (CONTINUED) ‘SUMMARY OF SIGNFICANT ACCOUNTING POLICIES (CONTINUED) ©) Intent aests Acquired compute stare leences ar capialsed as tangle asses and measured at {ooh net of amount ef GST, excat wher the ameunt of GOT incre Isnt fecovrablo ‘fom the govirnment When the amount of GST inured isnot recoverabie fom the ‘ovornmert, he GSTs recognised as part of tho vost of acqustion of the compuler feftwarelorees| Aeiced compttrsotware and cences ar amertsed using he saighttine method over ‘hot estimstod use ves of wentyfour mens (2) impatient onan nancial asses oer than inventories Ascot thal ate eubjec fo dorecaten or amortisation are assossad at each reporting date to determine whether there ls any ination tha the assets may be mpaed. such indeatton exts, the atset Is Tested for impatmer. For the purposes of sssessng Inpairnane esses are grouped at he lowest evel or wch there are largely ndopondent ‘ash inlows fen generairg Unt (CCL), The recovradie amount i he higher of en beens (or CCU) far value oss costs lo soll and is val in use. An imparmon! ose recognised whan he anyng amount of the asset (CU) exceeds li recoverable amount ‘Te impalent loss is recagnisd fo profit a ost, Nonna asses tha ued an imparmert an reviewed for posse reversal of hs impairment at each regoring dal. Any Subsoquert reason recoverable amount recognised rn prftor ls. (@—Currentandeefered taxes ‘The tax expense for the petod comprises eurent and deferred income tax. Tax is ‘aognlaedmprott or ss, excepto the extent ha relates lo Home recognised nother ‘omprehorsie Income o decty neq. nts case, tha tx aso recomssed in other Camprchonsite income or cect in oquly, espechvly ‘The cure itome tox charge scald using the tax flas (and tx laws) enacted or subslatvely enacted al the end ofthe reporting dats ine country where the Company ‘operates and gonerals laxatle ncome Deferred on provid on lala trnporary deren. Howaver dafeed tain ‘Sconuied fort arses fom ital recognition ofan aset or abiy in Vansacion other than a busines combination ha tte ne ofthe Wansacton facts nether accountng ror taxable pt ose, Delores tex ste are recognised tothe extent that tis probable a tarable prof willbe fvalabe aganst which the deductive temporary Geerences, unused tex losses or unused tacts ca be used 2‘Company No, roasso | x KAWASAKI GAS TURBINE ASIA SON BHD {dncerporaes in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2017 (CONTINUED) 'SUNMARY OF SIGNFICANT ACCOUNTING POLICIES (CONTINUED) (6) Cuenta dtd aves (ontnved) Deferred taxis determined using tax rats (and tax laws) that hav been enacted or substantvely ented by the endo! the reparing pared and ar expocied t apply when We ralsted deere tax sets resized or he deers taxable clted Curent and fered assets and abies ao ofet when hare fa logally enorcaabie right to flea cent fax asses spans cure ex lls and whan the deferred income tax ‘0salo and balla relate 19 tas fovod bythe same taxation autotly on ether the ‘arable enllyor ferent axle enti where there sn Intentan fo sto the baaicas fone net bei (0) trventres Inventories te measured at the lower of cst and estinted sling price less coe to Complete andeel Cote detormined using th ran est ou (FIFO) manos. ‘Coat of invertors includes al cost of purchase, costs of caverion and other costs ‘neured In binging the Iwenieris to ther prosent location and condition. Costs of purchased imencry are detarmined afer ceducing rebates snd rage scounts and the [Broun of GST, excopl where the amount of GST inured isnot recoverable from the ‘Sovammant. When the amount of GT inert recoverable ar the gover fh ‘SST Isrecagnised a part of tho cos of purchased invent _ALeachrepring cate, vontces ae assessed for impairment inventor ismpale, the ‘arying amovnt reduced to selling pie ese cose a complao and a teimpoment lott recegriaed imedatay in pret or ess. When the imparment indicators no nger ‘xt the Inparment es fraversed an he ne carrying amour the lower of he exe land the revised sling pcos oss costs to complete and sel (Trade eceition Trade recebes sre recogrsed inl altho warsacton pies, wit the artunt of GST Incuded. ‘The net amount of GST recoverable fom goverment. prsenied 35 ‘Roce’ ieb eatement of ancl poston, (Cath fows 10 hluded Inthe statement of cash fows on a gross basis, The GST Components of ash flows vic ave recoverable, of payable, the government are ‘asides epeating cath flows Trade recevables are subsequently measured at the uncsceuntod amount of cash xpacte tote reeivad, est provision Tor mpatmen. A prowsion for moalmant rad Feceivables is estaished when there is eBlectve evance that Pe Compary wil ot be ‘ble 10 collect al suns due according to he origina tems of the receivables, Impatment le she deren betwoen the eaying amount ofthe recsvabes a tho ‘rorontvake of estimated cash flows dicouned a Ne recehables orginal efectve Interest ate andl recognised in prose.com; 70260 No. x KAWASAKI GAS TURBINE ASIA SDN BHD Ancrperato in Mala) NOTES TO THE FINANCIAL STATEMENTS -31 DECEMBER 2017 (CONTINUED) [SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) o Oo o Derivative fhencial inetruments Dervativos a ily recognised a fal value onthe date a daratve contracts entered Ino and are oaequanty remesaurod at he fa value, st each raprtng dat wi Te Changes infer vie recognise not or bss (Csuh and cas equivalents Fortne purpose ofthe statement of cash fows, cash equvalants ae helé to meet short tem ‘cash commitments nslead of or vestent cr ofharpuroares. Cash and ca eaualens ‘omprien cash on hand, demand deposits and ctor shoretam highly Hau westments vith orginal tris of twee monte orless tae realy converte koown amounts ‘of cashandtta re subject niin ek of changos vale. Trade payables ‘Trade payales are recognised italy atthe tansacon orice, wih the amount of OST ‘node They are eubeoquenly measured alte undlscounted amount of cash expected ‘obo pai ‘cash tows se induded In the statement of cash fows on 9 gross basls. The GST ‘omponens feat fous ulich are recoverable fom, oF payable tothe government a ‘dasafed as epereting cash ows, Revenue recogation Revenue is reasurd at tha fa value ofthe consideration reeled or recsvaba for he Sale of goes, Revenue is shown nol of GS, ers, rebates and counts. (Construction convacts Revenue om a constuction contac recognised by reference fo Ie sage of ‘competion of the coac sc af tha end of the repring period when the ‘ulcone of constuction contact can be estmaied relabiy (0 “percentage of Compation® method). Under the petceriago of compotion method the stage of compat ie determined. using he propotion that costs icured for work Devomed to date bear tothe eximatad total cost ‘ner ne outcome of consiutoncoiract carne be estimeted realy, reverse tbe ecognaed ok tothe extent of contact cost nerd ha re reaver “The conrect costa Is racogiend ae an exporse the period In which they re nour ‘wher ts probabe that ot conract cots wil exceed tll contact everuo, he ‘expected las recognised as an expense immediatlyCompany No o2s00 [ x KAWASAKI GAS TURBINE ASIA SDN BHD (incorporates in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 91 DECEMBER 2017 (CONTINUED) 'SUNIARY OF SIGNFICANT ACCOUNTING POLICIES (CONTINUED) © Revenue reception (cnsinued) o o w » ‘Construction contacts (connued) 1 crounstanees as that may change the agina estimates of revenues, costs or ‘extol of progesslowaré compton, estimates ae revise. These revisions may ‘omulin iezeses or decreases estimated revenues, or costs and ae reiciad in ncome in th period whch tha crcurstancs tal givers tothe revision become known by Dectrs| ‘The egaregate ofthe costs incurred end the poli or lee rezogisod on each ‘conirets compared agsint he progres billngs up othe plod and. When costs incur and ecogneed pots (ss recognised losses) exceed progress bigs, tha balance i shown at ‘Amounts de rom customers on constuction conracts under Rocetvabis: Where progress ings exceed costs incurred pls recognised profi (ess recognised losses), balance ie chown ae Amounts ee o eusiomers ‘Oncanshucan conracts under Payabos Revenue om soles of spare pats end accessories, gas engine and water bole RRevesue rom sale of spre prs and aocessores, gas engine and water boler fre ecopnieed when sgniicant rise and ewards of ownership of goods ae transtored tothe bayer Revene on malnenance contacts Revenue relating to malnenance contacts recogrised upon perfomance of he Revenue on eal ovehau services ‘Revenve relating lo local overhaul! senicos is recognised upon an exchange of ‘overhauled gos turbine equoment io customers. Inter income Intcet nome ie recognized using the fectv Inarest method. 6‘company No, ease | x KAWASAKI GAS TURBINE ASIA SON BHD Alncerporaad in Malaysia) NOTES TO THE FINANCIAL STATEMENTS -91 DECEMBER 2017 (CONTINUED) ‘SUNMARY OF SIGNFICANT ACCOUNTING POLICIES (CONTINUED) (©) Enpoyee beet obgatons ()Shartiarm employee beefs ‘Wage, salaries, peié anna! leave and sick leave, bonuses, and non-menatary Donets that ae expected tobe sated whally wih 12 months afer the end of the rod in which the empoyees render the related service ere recognised in respect {teneloyeas’ servoes up othe end of th roaring period and are measured at ‘he ahours expected to be paléwnen the Halles ae sates. The lables are recetod ae pat of Payables into statement of nail poston. Postenployment berets ined contibaion oan | dope contibuton plan i person plan under which the Company pays iad Contbutons no a separa ently (2 fund) and has ne legal or consucive ‘blgatons to poy futher contbullons afte maka drect benoit payments 12 fempleyoes ithe und does rot hid sufi assets to pay al employees benetis Felairg to empayee sve nthe caren na por pred. Contos are recognised as employee benoftoxponso when they are due nls thoy formed pat of be costs of an asset such as inventories or pant and ‘equpnant If conribuion peymans excood the conto due fr serve, he ‘ona fecognised as an asst tho exon that We prepayment wlreduceTatire payment (Leases - Accunting by lessee Onerana lene Leases of sasets in which substantial the rbks and reuardsof ownership aro retained byte lessor ae clsstid 2s operating leases. Paymonts mace under operating eases (Roto any incentives roeved em ha lasse) are charges fo rotor lose ona eight Tne basis eve" he pared of he lease unless te payments fo the lessor are sucured 0 Increase in ne wih expected general ifation haved on publchod indexes le compensate forte lessors expecod iiitonary cost mereaces, 6‘Company No, 020s | x KAWASAKI GAS “URBINE ASIA SON BHD AIncerporsted in Mls) NOTES TO THE FINANCIAL STATEMENTS - 91 DECEMBER 2017 (CONTINUED) 3 SUNOMARY OF SIGNFICANT ACCOUNTING POLICIES (CONTINUED) ()—Forsgn curencios 0 w Furctonal an presentation eurency ems includ nthe fxncal statemerts sre measured using the curroncy of te prinzy econamic envionment in which the Company operates (the funcional ‘urrenty). The functanal currency of the Company is Japenese Yen (JPY), The ‘inardalsatoments are preserved In Finggkt Malaysia, which i the Companys preston eure, ‘The Company ranlate ts toms of name and expanse as wos Is assets and lattes fom furelenal currency into preseniaen cureney using the folowing precesures (0) Assets and tabites a wana atthe dosing rate at the roporing date; (i) Income and expenses ar uarslated at average rates fora paid anes ‘he exchange rales fucusle significantly, n which cae Income. and ‘eporees af wanlatod at horas atthe dates of the Vansactns) and (i) Atrsuting exchange eterences ae recogtised in ober compcehenshe Income and repoted a a component of egal. Thay ate nt subsequerdy reclassified o prot oles ‘Transaction andbalancas Foreign currency ransacton ae transatd into the furconacurency using the xchange tes prvaling al he dale fe Yansactons Foragn exchange gas fand bse revuting trom the selvement ot such transactors ana from te Hanlon at yearend xchange ratos of monolary aseels and Tabi Adenoninated in foreigncurences are recognised nt prot oss Fovogn exchange gains and losses tat relate to cath and cash equvaons are preset in prof ooo.Company No 702680 [ x KAWASAKI GAS TURBINE ASIA SDN BHD (corporates in Malye) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2017 (CONTINUED) ‘CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENT IN. APPLYING ACCOUNTING POUCIES (@) Current and deters tax ‘The Company computes is deferred tax blarce on yearly bass sccorance with is ‘coouning paley 8 slted In Note Sd) This Iwatos judgment rogareing the future {inane pearance of tre Company i which the delrred tax assets shoud have beon tocogrisad:Osfred tox assls are recognised oth extent thal tis probable tha ure {axeble pret wl be avalable against whieh We deduce emporaryerferences can be vies, (©) Mowance orslow moving wentores “The Company seta the alwance for slow moving inventories based onthe inventory aye, Alowanes for som moving Invenioes Ig recarded where events cr changes in ‘Sroumstancesindeala hat to caryng cst of Inveraries wil rot be fly eased, Te ‘quanfeaon of ivenory allowances requres ho so of estimated and judgments, Where the outcomes are fern rom the orginal erivaes, sh drencos il impact ho ‘crying valueofvertones and allowances for nventry nthe years whch sich extmaos have bean charg (0) Inpaientofrocevales ‘The Companymakes inplment of rece\ables tase onan assessor ofthe recoverblty cfrecavatas. nparmonts apped to receivables where evens o changes ncreunsiances Inseate that te crying amounts may net be reoovbl, Nanagomont spectral ansiyses stores! bod deb. cloner concerto, customer eedtwortiness, cert economic trend and changes ncustomer payment terms whon making Mgmnt o evatsio ho ‘quay cf inpalment of reolabies Where expocatons dor fom th gna skates, the dferences woul Inpect he canyng amount of reves REVENUE Revenue consis of ao aig oo RM Equipment contact s20eqsi4 4.080768 Sales of spare parts and accessories 2aaszo00 11,960,209 Loca ovenut services ‘4osz308a.s10032 Maitenance contact Zest 10,603,305, Sales of water boiler "40.835 "76813 Sales of 2s engine ° srasas 3901.08 66,306,702 8‘Company No, roaseo | x KAWASAKI GAS TURBINE ASIA SDN BHD ‘Incerporaes in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2017 (CONTINUED) PROFIT(LOSS) FROM OPERATIONS zo ae cu Ri ‘The olowing tems hove been charged crete) in ‘artvng a oso rom operators: Construction contact cost recognised as cost of sales “Equipment contd 2ssesass 2.000638 “haintenance contact ‘isszoee 6002056, Cost of spare pars and accessories recognised ae costo 14ssetes sagan ‘Overnaulcost rocognisd as costo aes 2asio0 —e.stze7e (Cont of water boter ooops ss cat of sles "20.434 "80.036 (Gost of gas engine recognised ascot of sales 0 2047s ‘ashore remuneration 9.000, 35,000, ‘opreciaton of plantand equpment seoaore —3.208,68 rant and eqapmentrston of 364 1853 ‘Amorieton ote asses 704 okaiz ‘Stat osts Note 7). eaasetr 6.404010 Far value (gainless on deivaive Tiraelal Rovumens (11700) sg0g814 Rena of promises ere 748,008, “Technica too 1016.08 Sa2.080 Natresies foroign exchange gan (20086 7.18227) Noturveatsedfovi exchange gain (eensse) (196.885), ‘Gonsutatonsarzeineome (yonans) (671498), ‘Sate and marketing serves income 3689) (422.980), STAFF COSTS: ay, m8 Ri Salaries, wages are torus s324s05 5.425981 Defined cnttbuton pan ‘seolesz ‘ar5t6 Staff benefits ‘ois 9743s Director remuneraan (Not 8) ac0.878 425.048 eazse7 © “6409010 DIRECTORS" REMUNERATION “The aggregate amount of emoluments receved or reelable by the Decors from the Company ‘Gang the natal yar 2 lon ao a e RM Slates and ther emoluments (Neto 7) 499,875 423,008 stated monetary valve af benefits 0,600 40,500 0‘company No. onsen | x KAWASAKI GAS “URBINE ASIA SON BHD AMpcerporatad in Malays) NOTES TO THE FINANCIAL STATEMENTS -31 DECEMBER 2017 (CONTINUED) FINANCE INCOME (NET) mo 201g Rit RM Inerest income 2218 79303 2215 793603 ‘TAXATION 2a ug a RM ‘The attion forthe franc year comprises: Ingospectof Malaysian come tx “Curent year 080.085 Pra yoar a2 se Ineospct of eefrrodix Cian year Noe 13). (135,934) 075.604 “The explanation ofthe elatonship between taxation and Profiles) belore estonia flows Proifoes betoretnxation 1,321,034 (707) ‘Tax expance caleulsed at Malaysian tax rate of 24% (2016: 24%) 707008 (4,086) “actos o “expences tot dedi fr tax purposes 232,401 271,108 “income not subject ota (9782) ($5,268) Movement tx beats for ponaorbusingss “ " not recognised ‘sissmo 4,235,302 Under actuals of fered taxation in pror yaar (623036) 13870 Taxation 075.608 2.526098, ‘The sppeation fr the Ponser Staus under the Promeson of investments Act 1966 forthe {sluishment of ges lines acty has been aperoved by Malaysian inesiment Development ‘uthorty CMIOR") 0910 Oceber 2012. Under the Ploner Stalus, te Company willbe oxemotad {fom 70% of tltery name fr to returbstment of ga tursines activ fr 5 years of assessment Nol dtoea lax askes e ecognsed forthe pot ox bets rest om he pone »(ses'oe'vs) (woo'ess) (soe: TiEueU'2t 198'6S5 | 98/ siwmez & oreo, nen 000 otoadop paweruinoay 1809 Troe CTE og sequs09q Le Sy oss voresues. ‘bieyo voyeaideg wow, suonpey oe Asenuer 13889 ENO OT TOR ves ve ves ves wes ms Tojeracsy Neueres SEouTpIe Tewores SopmeR SUNT Susppue — Smuny suo. sovowe oven, awainoa aNy INV (oanwuinoo) 2102 ¥3W3030 1¢- SINBWALVIS MONVNId 3H1 OL S3LON (xseeyu paesodioou) (GHA NOS VISY ANIEENL S¥O DIVSYMVOA x | o2aeor “INTISoseee08 eve (a'ese) ‘co' 658 ve sarees (oow'e1e) Ser'6as' S519 (cagia6e Oae'ise wore, vas eu ‘usp pur ous, (eususe) PLL OE (oven ero (coos) oso = Ber'OL © ee'8s nen 3000 vonetaiten paremunooy 1809, TOE THRUBESTTE souasayp vopssues, some voneoeitog Shoapey 902 ueruer | 25 (aannunoo) snanainos ony ANTE (canwunoo) £102 N3GN3OIO Le - SINAWALVLS TVIONVNI4 JH OL SALON (xsseew 2 poesodizou) (GHA NGS VISY BNIGUNL S¥O DivS¥MNV cao oN RadaaD2 18 ompany ro26e0 | x KAWASAKI GAS TURBINE ASIA SON BHD. Ancerporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2017 (CONTINUED) INTANGIBLE ASSETS ard mis PM RM Intangible assets comrse software cost Aine begining oft inane year rote srg2 ‘atone ° 25,04 ‘Amortisaton 9608) geat2) ‘Aine end of te racial year 220 7a Representing cost 227.416 200.588 ‘Accumulated amortisation (27,188) (251600) Not book vue 220 Tea DEFERRED TAXATION ‘The lowing amounts, determined ater appropri oeating are showin be statement of feanci poston: Pad ass Rie RM Dofered tax assots 203.081 onsa7 A January onsa7 ‘1702 ‘recto prt ris (Nee 10) = Pren and oqupmont 709s? 225070 {pects c2,109) i700) 1 Ferign exchange erences 134370 ea) oo ‘131 December 203,0811% “ 6 702000 | x KAWASAKI GAS TURBINE ASIA SDN BHD (corporate n Mala) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2017 (CONTINUED) DEFERRED TAXATION (CONTINUED) aur ‘at Referee asses oft) Pantandeauoment ase ‘ome soz Fern exchange deerces 10420 “3081 ofeting ° Deford taxes ater oer) 709.081 Defer insta (or ostina) Pent and equipment ° Feraghexchorge dances 6 ° ofeetng 6 Defoe taxes (erating) ° INVENTORS ny Spare pars and consumables 13963913 RECEIVABLES a Ri “rs asin sr00042 Ore rosoobon ‘eran Boposte are ca? ‘rou som cmos on contact (ot 2) 7207 095 256 368 (2.400) aa) (2310) ‘32310 18 a 19245278 a8 aM ‘irssoat ‘rear 85,165 1a943.548 2072,108 Creat tas of tage osvabies range trom payment in advance to 80 days (2016: Payment in ‘vance 80 days) ‘The Compony’shistocaloxparince In catetion of rade recohabes fall wih the recoded ‘llowarnces,Oue to tase factor, management beloves that ro coat rik er coleconfosses Is inherem in ine Company’ ade receusbies.6 a2600 | x KAWASAKI GAS TURBINE ASIA SDN BHD (corporate in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2017 (CONTINUED) RECEIVABLES (CONTINUED) ‘The cureney exposure prof of rade ecarabes i flows ao RM -usDoler 702070 “Japanese Yon 800,488 Ringo Malaya 208,686 719862 [AMOUNT OUE FROMITO) ULTIMATE HOLDING CORPORATION ‘To nat amount ve emt) timate holding corporation i classi a flows: ao M courent 3270850 “The net amount du a utiateheng orpeation consis of Recehvable 179.653 Payable (2465253) ‘Down payment tor chases *4563,100, 32795959 ‘The cureney profi of pet amount de ouliate holding corporation is as follows: “Japanese Yon 288683 “Ringgit Malaya ‘8583, “Indonesia Ruppia 19,122 Euro ° 3270580 m9 RM 2.953.082 ‘4518.26 22asrs7 518.68 ia RM (202,120) 2291 (12336 020), 6.3,709 (202,120) ane ‘5.00632 217038 ‘ooze 21,008, (2,202,120) ‘ther than he amour payable or purchese of equipment tbe net amount due fo utinate hong ‘corporation e may race Innate, unwed Inroat (ae and wth ered terms ranging om ‘0 days to 180 days 2016 30 days to 150 day).7 ® pany No. o26e0 | x KAWASAKI GAS TURBINE ASIA SDN BHD (incorpovated in Malia) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2017 (CONTINUED) ‘AMOUNTS DUE FRCMIO) FELLOW SUBSIDIARIES ‘The smount due om a felow subaldary is Wade In nar, nterost fe, and had cre term ranging for 30 daye to 90. days (2016: 30 day to 60 days). The amount de fom a flow ‘bedi denominated in Riga Malays ‘The amounts due tllow subs ae malay ade n nature, unsecured, interest ree, and had ret term ranging fem 20 days to 60 days (2016: 30 days 0 80 da), ‘The currency exposu pote of amount due fo elow subsides sas flows: zor aa a RM Siogapere Dole usa) (14.738) “Japanese Yen ° 3,700) Ringat elaysia 100,121 122548 503180 (2.800) ‘CASH AND BANK BALANCESICASH AND CASH EQUIVALENTS ‘Bonk balancs are depos held at call weh Banks. The curency exposure prof of cash and bank balances are es folows: 2a Foy RM RM Japanese Yen tezeset 5205238 Ringgit Malaysia Szrross 201,158, “Us Boter 3.105514 ‘sar + Singapote Dolor ° 9273 2a761,190 —_7.608,44010 20 mpary No. ra26e0 | x KAWASAKI GAS TURBINE ASIA SON BHD Ancorporated in Masia} NOTES TO THE FINANCIAL STATEMENTS -31 DECEMBER 2017 (CONTINUED) PAYABLES 2 ie Ri RM “Trade payables 180.207 e43.015, Other payables 2007885 391.812 ecriais aaaress 7.330881 ‘nouns due eustoners on contacts (Noto 22) goad4s 0018.67 42478982 34388775 ‘The currency exposure prot of rade payabos sas fows: Ringgit Malaysia 185.082 arian “Indonesian Rupiah ia amir US Daler 2581 ° “dapanese Yon 122 ° 100.207 643,015 rect term of ade payables ranged ftom 7 days 130 days (2016: 7 days 30 day), DERIVATIVE FINANCIAL INSTRUMENTS. ‘The movement curngthe nancial year inthe amounts recognised i a allows: 2 m8 Pa RM ‘AU January (14.706) 5.877,108 ‘recta(rarge) to proto loss (Note 8) tres (65883814) A131 Decombor 0 (3.708) ‘ond freon exchange conosta ‘The Company had contracted to buy the following amounts under forward foreign curency contacts a8 heen oe eparng par: Weighod average logo Malaysia Contact amount sonatas ale -sauident RM zor iw ‘ sw am SPY 182,200,000 00 sP¥ 38299 sazoo7e ‘As at 31 December 216, he slfement date on the open forward contract ranged from 31 days wo istaaye2 ‘Company No, o26e0 | x KAWASAKI GAS TURBINE ASIA SDN BHD. (corporate in Malaysia) NOTES TO THE FINANCIAL STATEMENTS -81 DECEMBER 2017 (CONTINUED) SHARE CAPITAL subor 000 ordinary shares with no par value (@ot6: par valo of Fit each) ‘ALbeginng of fnancal year ‘Abotehmont ft coroen of authorised share caption 31 January 2017 ‘Avond of franca yoer ‘agua and fut nid wo: 3,000,000 ory shares wit ropa value (@ot6:parvalo of Ft ac) [Atboginingond of fancialyoar 207 Ra $000,000, (6,000,000) 0 $000,000, Par} RM 5,000,000, £000,000, 5,000,000 ‘The new Companies Act, 2016 (the “Act. which cams into operation on 34 January 2017, Abolished the eanceplasuthosed share cpl and par value of share capa Theres no pact ‘onthe numbers of orcnary shares in asie & the lave eniisment of any f tha membare a6 & ost ofthis vansivon PROJECT CONTRACTS: ‘Agoregete cost ud and recognised profs Less: Progress ings ‘Amounts dus rom eustamars (Nota 16) ‘Amounts is to usta (te #8) 214,908,052 en aun Pa 244.481) 996,100) 207,035 545,148) (27,830,108) 9 RM ter.s45a0% iseaz%.110) (1075210) raesasee eoot8767, (oraz)2 razs00 | x KAWASAKI GAS TURBINE ASIA SON BHD (corporate n Mala) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2017 (CONTINUED) “SIGNIFICANT RELATED PARTY INFORMATION In adton to rlated party delosuee mentioned elseaher in the hance statomens, other nla related par ieformaion i 0 ot below (2) Related partes andretatonstip, ‘The elated pares and thoi oiatonship wit the Company are as folbws Belated aces Kowaseki Hoary Industies Ld. Kavrasekl Heavy Indust (Segapore) Pl, Lit Kawasald Thermal Engineering Co. Ld (6) Sintiant related party transaction iatonstin timate olsng corporation Flow subsidy Flow subsidiary ‘The sgncant related party ransactons descrbed below ware cared out on terms and Candis negtineg and agreed Between the Company and the rola parts. Relmbursomart of operating expenses by =Unimate oling corporation Purchate of spare parts and consumables from: = Usimate hléng corporation Purchase of eulpment rom: ‘timate Polsg corperation Allow satiny Purchase of ant and equipment rom: ‘Uma olding corporation “Rielow subidary Service incor charged to: ‘Tmt hong srporation own payment fr gas trines pai “thine eldng corporation Sales and maretng sore income chrged 16 = Utimate hong corporation ‘Consutationvrvie Income charg to: “Atel sutsllary ah aa coeasi6) (608.828) rrasiere 2499.0 operas soaraaee se06 po ° wary coset 3 crmanis) (700 400198 gez07 sores 982980 (194485) (22982) reso) _ cri.2% OE KAWASAKI GAS TURBINE ASIA SON BHD (corps in Masia) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2017 (CONTINUED) SIGNIFICANT RELATED PARTY INFORMATION (CONTINUED) (2) Remuneraoro kay management parsernsl Key managerent personnel ara defend se those persone having autho and responsibilty for anning, Srectng and conteling the actos ofthe Company eer ‘ircty or ndtecly. The ey management personel of the Company are Orectrs ef the Company. ‘The agoregate amounts of compensation received or recevtla by hey management person of ba Company sring te ieancl years decd in Noe 8 he inant Elatoments NON-CANCELLABLE OPERATING LEASE COMMITMENTS Noncancelable opersting laase conmiments undertaken by the Company for rant of an India ulling andmotr vehicles ao as follows: mo 2018 oH Ra Futur nino loase payment Payable wthn on year 1.076.098 943.687 “payabo whi two (ve yoars sz.2as 4.200.498, Aeon _ 6148.35, »25 ‘company No, KAWASAKI GAS TURBINE ASIA SDN BHD (incorporated in Malaya) NOTES TO THE FINANCIAL STATEMENTS -31 DECEMBER 2017 (CONTINUED) FINANCIAL INSTRUMENTS BY CATEGORY zo M fy ured a morsed cos Recelvabos (excuses prepayments) 25,760,101 ‘Amount de fam Utinateholdng corporation ‘3.270860 ‘Amounts duo fom slow subsidiaries “oo..21 Cash bank bates Total nancial asses 53,971,001 ‘Anant lablles measued at amoried cots Payabies 42,178,182 ‘Amount due to utialehalcngcorpration ° ‘reunite flow abeldarios 4oaet 42.208,128 nancial ‘Weouch oaftorloss Derive nancial iieuments ° Total nancial bites 4228,123 [APPROVAL OF FINANCIAL STATEMENTS, 348,785 1708 34,200,401 ‘The nal statoeons have boon approved orissuein accordance with resluonaf the Board cf O¥ectrs on 20 Jure 2088 a‘campany No ‘oasen | x KAWASAKI GAS TURBINE ASIA SDN BHD (eorperated in Malaysia) ‘STATEMENT BY DIRECTORS PURSUANT TO SECTION 251(2) OF THE COMPANIES ACT, 2016 ‘We, Takashi Hayashi and Teujesh Tot, blog two ofthe Drotors of Kawasaki Gas Turing ‘Asi San Bnd, do rey stata tat. n te open of te Directo, he accompanying Manca flatoments sot ov. en pages 5 0 31 af afevn up £0 c= fo ive ate ad fat view ofthe Finacial peaiton of he Company ax at 31 December 2017 ana francial perormance ofthe Company forth nancial Year ended 31 Decomber 2017 9 accotarce wih the Malaysian, Priate nites Reparng Standard and the requirements of the Companies Act, 2018 Malaysia ‘Signed on behalf te Board of Drectrs in aczerdance wth a reson of he Oectors datos 20 JUN 28 “ale rhs AIG TOR Snegfon Kuala umpor ‘STATUTORY DECLARATION PURSUANT TO ‘SECTION 251(1) OF THE COMPANIES ACT, 2016 |, Teka Hayashi, be Director pearly response fr tho Fnancil management of Kawasaki {Gas Tubine hala San 8nd do eclemnly ard sincerely delore that the tana laterens et futon poges to 21 ao, othe Beto hy knowladge and baa, estat and mae this ser flecarion eonseniousy baleving tne game tobe tue, and by wtue of the provisons othe ‘Staulory Declarations Ach 180. ‘Subscribed and sleet declared bythe abovenamed Takashi Hayashi, KUALALUMPUR. 18, sNLAN naKvar CALAN TERS | BRICKFIELOS 60470 KUALA LUNPUR2" pwe INDEPENDENT AUDITORS’ REPORT TO THE MEMBER OF KAWASAKI GAS TURBINE ASIA SDN BHD (neorporated in Malays) Company No. 7026803), [REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Suropinion {nour opinion, the financial statements of Kavatahl Gas Tubine Asia da, Bhd. Cte Company) give ‘tm andfairview ofthe financial postion a the Company a at 91 December 2017, andof ts nancial ‘performance ands csh flows forthe fall yea then ended in accordance with Malayan Private Entities Reporting Stancard and the regurements of the Companies At, 2016 in Malay, ‘hat we have audited We have audited the fiancal statements ofthe Company, which comprise the statement of financial at 94 Deceter 2017, andthe statement of somprehensive income, statement of changes ‘cashflows for the naneial year then ended, and notes tothe financial We conducted our sult in acondance with approved standards on auditing in Malaysia and temational Standards on Auditing, Oar respansbltes under those standards are father described {nthe "Auditor! responbites or the ait ofthe incl statements” section of uF report. ‘Wie beliove that the audit evidence we have btanel i suficent and appropsate to provide a basi for curopinion. Independance and othe thie esponsibtes ‘Weare independent of he Company in acordance wih the By-Laws (on Professional Ethics, Cmduet and Pact) of the Malayan Istiute of Accountants By-Laws?) andthe International Ethics ‘Standards Boor for Accoustants’ Code of thie for Professional Accountants CTESBA Code), and we ‘have fled our other ee responses in accordance with the By-Laws and the TESBA Code, PrcecteriowseCoopas PLT (LLR00144OFLCA AF 146), Chartered Acct, Lael, Sentral Jan elyot ula Lampur Sera 0 Bog, 706 Kank apa Maya 60 (9) 2731188, F409) 21791288, ope Oy 2bk pwe INDEPENDENT AUDITORS’ REPORT TO THE MEMBER OF KAWASAKI GAS TURBINE ASIA SDN BHD (CONTINUED) (Gaconporate in Malesia) (Campany No. 702680) [REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) [Information other shan he financial statements and awe’ report. henson “The decors of the Company are responsible for the oer information. The other information| ‘comprises Divetors Report but does not incude the Nusndial statements ofthe Company and ou ations teport thereon ‘Our opinion onthe nacil statements the Company does not cover the Diretor’ Report and we do ‘ol expres ny frm surance conclsion thereon, ‘In connection with oat audit ofthe financial statements of the Company, ou responsiblity st read the Diectore Reportan, n doings conser whether the Director Reporte materi inconsistent ‘vith the financial statements ofthe Company or ott knowledge obtained inthe audit or otherwise {Sppents tobe materiallymistated, 1, based onthe work we have performed, we conelude that there i a material mistatement ofthe Directors’ Report, weare require to report that fut. We have nothing to report in his regard ‘Responsibilities othe diestrs or he ancl statements “The decors ofthe Company are responsible forthe preparation ofthe Snape statements ofthe Company that give + te and fir vew In acordanee with Malyslan Private Entities Reporting ‘Standard and the reqaements of the Companies Act, 2016 in Dalajia, The dretors areal responsible or such internal coml asthe decors Jteonine i necessary to enable the prearation ‘ot Boancial statement the Company that ar res fom mati mittee, whether due to faud 1m preparing the nancial statements ofthe Company, the directors are responsible for assessing the ‘Company’ ily to contnne asa glag concer, disoring, ax applieabs, matters rated to ging ‘concer atd wing the gang concer bai of acountng wales the diregor ether Intend oligaate ‘the Company oro cease operations, o have no alte alternative but to doo,kb pwe INDEPENDENT AUDITORS’ REPORTTO THE MEMBER OF KAWASAKI GAS TURBINE ASIA SDN BHD (CONTINUED) (Goeorprated in Maya) (Company No, 702680 3) [REPORT ON THE AUD"T OF THE FINANCIAL STATEMENTS (CONTINUED) sulin resgonsbities for the aut ofthe Snail statcments (Our objectives ate to obtain seasonable assurance about whether the final statements of the Company as. whol arefre from material misstatement, whether deo fraud or etor ant sean ‘uitors report hat Incas our opinion, Reasonable asarace high eel of asutanc, but isnot ‘parantee that an auitconducte in accordance wil proved tanlard on adting in Malaysia and International Standardr on Aviting wil lvayy dete a material misstatement when it exis Mistatements can aris from fed or exor and are consdered material if individually or inthe Aggregate, the could essay be expected to tnlunce the eonomic decisions of wsers taken on the ‘asin these financial satements, ‘As pt of an a in ascondance with approved standards on auditing n Malaysia and Tntraationl Standards on Avitng, we exercise professional adgement and maisaln professions scepticism tirougheut the audit-We alo: (2) Wentify and assess the rics of material mstatement ofthe Anancil statements ofthe Company, whether due wo fraud of ero, design and perform audit procedures responsive to ‘howe rss, andobain audit exidence that sufient and appropriate to provide atl for ‘ur opinion. Th sk of not detecting a msttialmisttement resting fom fai higher ‘han fo one eating from eto, asfraud may invalve colon, forgery, ntentionalonisins, _mrepesenatios, or the overide of internal control (©) Obtain an undastanding of internal contol relevant to the audit in onde to design audit ‘rocedoes tht are apnropriate i the cresmstancrs, but not fr the purpose of expressing an ‘opinion onthe fetvenes of the Company's iteroal conte (©) Prauate the appropriateness ofsecountng polices used andthe reasonableness of accounting ‘timatesand lated daclones made by the dietos. (@) Conclude onthe appropeatenss ofthe directors! use ofthe going concen basis of accounting fn, based on the audit evidenee obtained, whether a material uncertainty exist elated 12 ‘rote or contin that may cst sigan dost on the Company ably to continue a 2 ‘oing concer. IF we conclude that a material uncertainty exists, we are required to daw SKenion i out auto report tothe rated dselosures inthe financial statements ofthe ‘Company on feich disdostres ae Hnadeguate to modify ovr opinion. Our conlusions are ‘hued on the a evidence obtained upto the date of our suitor report. However, fue ‘verso copdidons may eause the Company to cease to continue asa golng. concern. (©) Bualte the ctrl! presentation, structure and content ofthe financial statements ofthe ‘Company, nding the dissosues, and whether the Financia statements represent the ‘ndatyingtranictons and events ins manner that achieves far presentation. 38kk pwc INDEPENDENT AUDITORS’ REPORT0 THE MEMBER OF KAWASAKI GAS TURBINE ASIA SDN BHD. (CONTINUED) ‘corporate in Malay) {Company No, 7026803) [REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) Auton! responsi or thea ofthe financial stementa (continued) ‘Wecommunicate wit the directors regarding, among other matter, the panned scope and ting of ‘the suit sigan suit findings, neulng ay igen defleness in internal contra that ‘OTHER MATTERS "The report made solely to the membees the Company, baby in accordance wit Section 266 of ‘the Companies At, 216 Malasia and form other purpese. Wedo not assume responsibly toany ‘other person forthe eantent ofthis reper. wCrabeatag ee (none LPoo14gor-LCa BAF n46 .2081/08/2018 3 (Chartered Accountants (Chatred Accountant isla Lumpur 20 sue 2018, 36