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a) Goodwill/ Bargain Purchases on Acquisition of  Kelemak   Bhd  (60%)

RM (million) Consideration Transfer:   Cash (74m - 20m) 54 Preference Share (50m X 60% X RM2 X 10%) 6 Non-Controlling Interest  35   95 (-) FVNA of Kelemak on 1/7/19 (88)   7 (-) Impairment (10% X 7) (0.7) Goodwill on consolidation 6.3

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b) Gain/ Losses arising from second acquisition of shares in  Kelemak  Bhd.

RM (million) Consideration Transfer:     Cash   20       (-) FVNA of Kelemak on 1/1/20     Ordinary Share Capital  50   Retained Profit (22 + (3.8 - 0.8 X 6/12)) 23.5   Other Reserves 8   Asset Revaluation Reserves  8     89.5     X 20%       (17.9) Loss   2.1

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c) Carrying Amount of Investment in  Melekek  Bhd. (30%)

RM (million) Cost of Investment   15       (+) Post Acquisition Reserve/ Share of Profit from Associate:   Post-Acquisition Profit (4 X 6/12) 2   (-) Unrealized Profit Land (1)     1   Interest in Associate  X 30%   Share of post-acquisition (To Schedule)   0.3 Carrying Amount of Investment   15.3

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d)   Group Retained Profit and Non-Controlling Interest as at 30 June 2020

NCI  GRP  GRR     RM million  RM million  RM million NCI on acquisition of  Kelemak   35     Decrease in NCI    (17.9)     PSC in  Lendu     50               RP of  Alor   Bhd           Balance c/d      228   (-) Impairment in  Kelemak     (0.14) (0.56)   (-) Loss on Second Acquisition     (2.1)   (-) URP of Machine     (4)   (+) OPD of Machine (10% X 4)     0.4   (+) Share of Profit from Associate   0.3             RP of Gajah Bhd         Balance c/d  101       (-) URP on inventory (5)         96   96

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NCI  RM  million GRP RM million GRR  RM million RP of Lendu         Balance c/d 50       (-) URP of Motor Vehicle  (1)       (+) OPD of Motor Vehicle 0.1         49.1   49.1             RP of Kelemak         Balance c/d  25       (-) Pre  (22)         3           (40%) (60%)   (July 2019-Dec 2019) 3 X 6/12  1.5 0.6 0.9       (20%) (80%)   (Jan 2020-June 2020) 3 X 6/12 1.5 0.3 1.2                 67.86 369.24

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e) Consolidated  Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2020.

RM million  Revenue (42 + 40 + 72 + 26) - 20 (Interco trans) 160     Cost of Sales (15 + 16 + 18 + 13) - (Interco trans) 20 + (URP inventory) 5 (47) Gross Profit 113 Gain on Disposal (5 + 1) - (URP machine) 1 - (URP MV) 4 1 Investment Income (5.4 + 2 + 5.7 + 0.3) -(Div Kelemak) 0.64 - (Div Lendu) 3 9.76 Expenses (14.8 + 18 + 20 + 8.3) - (OPD Machine) 0.1 - (OPD MV) 0.4 (60.6) Impairment of Goodwill of Kelemak (0.7) Share of Profit (4 X 30% X 6/12)  0.3     Profit Before Tax  62.76 (-) Taxation (4.9 + 2 + 10.2 + 1.2) (18.3) Profit After Tax 44.46     Other Comprehensive Income   (-) Loss on Second Acquisition (2.1) Total Comprehensive Income 42.36     Profit Attributable To:    Parent  40.54 Non-Controlling Interest (W1) 3.92 TCI Attributable to Parent NCI 44.46 38.44 3.92

Alor   Bhd Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June 2020

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f) Consolidated  Statement of Changes in Equity for the year ended 30 June 2020

NCI GRP    RM million RM million Balance b/d  50 338.5 (W2) Acquisition during the year 35   Second Acquisition  (17.9)   Profit After Tax  3.92 40.54 Dividend Paid  (3.16) (W3) (7.7) Balance c/d 68.66 370.54

Alor   Bhd Consolidated Statement of Changes in Equity For the Year Ended 30 June 2020

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g.  Consolidated Statement of Financial Position as at 30 June 2020

RM million Asset   Property, plant and equipment (179 + 226 + 97 +50) + 8 – 5 + 0.5 555.5 Investment in Melekek  15.3 Other Investment (110 + 41 + 100 + 30) 281 Intangible (11 + 20 + 6 + 40) 77 Trade Receivable (20 + 7 + 22 + 12) 61 Other Current Assets (26 + 20 + 17 + 10) - (URP Inventory) 5 – (Interco. Trans) 20 - (Debt) 8 40 Goodwill  6.3 Total Asset 1036.10     Equity & Liabilities    Ordinary Share Capital 400 6% Preference Share 6 Group Retained Profit 369.24 Non-Controlling Interest 67.86 Long-term Loan (30 + 4 + 50) 84 Current Liabilities (27 + 13 + 24 + 9) - (Interco. Trans) 20 - (Loan) 8 45 Other Reserve (30 + 20 + 14 + (8-8)) 64 Total Equity & Liabilities 1036.10

Alor   Bhd   Consolidated Statement of Financial Position As at 30 June 2020

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QUESTION 2   In our opinion, Financial Statement of TG  Bhd  should not consolidate with  Usahamaju  Bhd. TG  Bhd  is not a subsidiary of  Usahamaju   Bhd  which make the company become excluded from the consolidated financial statement of  Usahamaju  Bhd. According to MFRS10 Consolidated Financial Statements, consolidation is done between the financial statement of a parent and its subsidiaries only, therefore it is not consolidated in this situation.   Usahamaju   Bhd  is a party to joint arrangement where there is a contractual agreement between  Usahamaju   Bhd , Exact  Bhd  and  Berkat   Bhd  that provides them with a joint control over TG Bhd. The decision about relevant business activities of TG  Bhd  should have the unanimous consent of all the parties with the reference of MFRS 11 Joint Arrangement in sharing the control.   There are two types of joint arrangements. It is either joint operation or joint venture. If it is a joint venture,  Usahamaju   Bhd’s  should apply equity method in accordance with MFRS 128. Investment in Associate and Joint Venture to record the investment in TG Bhd. But if it is a joint operation,  Usahamaju   Bhd  financial statement should disclose its share over TG  Bhd’s  assets, liabilities, revenue and expenses in accordance with MFRS 11 Joint Arrangement.

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DOA Holding NCI Cost Retained Profit General Reserves Ordinary Share in Highland Bhd   (32/40) million 80% 20% RM100 million RM42 million RM12 million Disposal 1/7/18   80% X 90% (72%)           8% Simple Investment RM160 million RM80 million

RM million  Consideration Transfer   100 Non-controlling Interest (20% X 114 mil)   22.8       (-) FVNA at 1/7/18     Ordinary Share  40   Retained Profit 42   GR  12   Asset Revaluation Reserve 20       (114) Goodwill    8.8

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Gain or loss on the disposal of the share for the Highland  Bhd            ( 90%) (Highland  Bhd , lost control)

Book of H  RM million Consolidated RM million Proceeds 160   CA of Investment (90% X 160 mil) (90)   Gain on Disposal 70         Proceeds    160 (+) FV of remaining Investment  (RM2 X RM32 shares – 28.8 mil shares) 6.4     166.4       (-) FVNA on 1/7/2018     Ordinary Shares 40   Retained Profit RR – Surplus Land General Reserves 80 20 12     152     X 80% (121.6)     44.8 (-) Goodwill remaining   (8.8) Gain on disposal to CSOPL   36

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b. Effects  of the implementation of the plan to the group’s financial statements as at 30 June 2019.   Highland  Bhd’s  account will be consolidated up until the date where the control is lost on 1 July 2018, then it will be equity accounted for the Statement of Profit or Loss. Consolidated Statement of Profit or Loss will be reflecting the results of the subsidiary up to the date of disposal of the shares. As on the date 30 June 2019, Highland  Bhd  will record gain on disposal of subsidiary.   As for CSOCIE, Highland  Bhd  will record nil for the balance of NCI and record the disposal during the year in NCI column at 30 June 2019.    In CSOFP, Highland  Bhd  shall no longer consolidate with  Tuah   Bhd  as at 30 June 2019. All the goodwill and NCI will become nil. The investment in subsidiary will change to investment in share and need to record in account receivable because to proceed for disposal of shares. Asset and liability only record for the parent only.

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QUESTION 4    Kencana   Bhd  ownership is only 40% (10 mil ordinary shares/ 25 mil ordinary shares) in  Seroja   Bhd  on 1 January 2019. Therefore,  Kencana   Bhd  does not have control over  Seroja  Bhd.    However, with the shareholders agreement that grant  Kencana   Bhd  the ability to appoint, remove and set the remuneration of management responsible for directing the relevant of  Seroja   Bhd  has given  Kencana   Bhd  obtained control over  Seroja  Bhd. This is because the power exists without majority voting rights (de-factor control). There are four situations. In this case, a contractual agreement exists between the investor  Kencana   Bhd  and other two investors that make  Kencana   Bhd  has power to appoint, remove and set the remuneration of management responsive of the majority governing body of investee by agreement.

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