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CONTENTS
OVERVIEW CORPORATE SECTION
Our Vision, Mission and Values 1
Chairman’s Statement 10
Our Company Profiles 2
Management Discussion and Analysis 15
Domestic Network 4
Sustainability Statement 25
Yusen Logistics Group 6
TASCO Basic Core Fundamentals 55
Consolidated Financial Highlights 8
Business at a Glance 56
Corporate Information 58
Board of Directors 59
Profiles of Key Management 65
Corporate Governance Overview Statement 68

Cautionary Statement Audit Committee Report 83

With Regard To Forward -

Statement on Risk Management and Internal Control 86
Additional Compliance Information 88
Looking Statements Calendar of Events 89

FINANCIAL STATEMENTS
Certain of the statements made in the Annual Report
are forward-looking statements, which involve certain
risks and uncertainties that could cause actual results Financial Statements 90
to differ materially from those projected. Readers
are cautioned not to place undue reliance on these
forward-looking statements, which are valid only OTHERS
as of the date thereof. TASCO Berhad undertakes List of Properties 178
no obligation to republish revised forward-looking Analysis of Shareholdings 180
statements to reflect events or circumstances after
Subsidiary and Associated Companies 182
the date thereof or to reflect the occurrence of
Notice of Annual General Meeting 184
unanticipated events.
Form of Proxy
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OUR VISION, MISSION AND VALUES

BRAND
VISION Our new vision describes our
ultimate ambition for the future
PROMISE
This is our brand promise. It
describes what we aim to deliver
time and time again

Connecting people, businesses & communities

to a better future - through logistics LET’S LIVE THE VALUES

BE
CON N E C TE D
Be open and transparent
in the way you work

MISSION
- and make sure you
truly understand your
customers’ challenges.

LET’S LIVE THE VALUES

This describes the business we need to
become - and tells us what we must do BE
to achieve our vision COMMI TTE D
Build relationship,
To become the world’s preferred supply chain logistics show your dedication to

company - applying insight, service quality and innovation

quality - and get every
detail right.
to create sustainable growth for business and society

LET’S LIVE THE VALUES

BE

VALUE
C RE ATI VE
Strive to develop better
ways of working - then act
on them and share them
with colleagues.

We also have three values that inform our

personality and behaviours. A rational one,
an emotional one, and a more aspirational LET’S KEEP OUR PROMISE

one designed to stretch us.

C RE ATE BE TTE R
CON N E C TI ON S
Connected
Get close to customers,
Committed work closely with
colleagues - and help
Creative secure the future of our
business.

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OUR COMPANY PROFILE

ABOUT TASCO BERHAD (“TASCO”)

TASCO was incorporated on 10 September 1974 and listed on the Main Market of Bursa Malaysia Securities
Berhad on 28 December 2007. TASCO is a subsidiary of Yusen Logistics Co., Ltd., which in turn is a subsidiary
of Nippon Yusen Kabushiki Kaisha.

TASCO has 28 logistics centres and 2,200 employees in Malaysia. It is a part of the global network of Yusen
Logistics Co., Ltd. having 631 locations and 24,967 employees worldwide as at 31 March 2022.

TASCO offers logistics solutions covering air, sea and land transportation. It serves as a one stop logistics centre
to handle domestic and international shipments for the customers.

TASCO has categorised its services into International Logistics Solutions and Domestic Logistics Solutions.

CONTRACT COLD SUPPLY TRUCKING

LOGISTIC DIVISION CHAIN DIVISION DIVISION
Customs Clearance Cold Supply Chain Domestic Trucking
Haulage Transportation Convenience Retail Cross Border Trucking
Warehousing Services
Warehouse In-plant Services

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OUR COMPANY PROFILE

ABOUT Nippon Yusen Kabushiki

Kaisha (“NYK”)
NYK is listed on the Tokyo Stock Exchange and Nagoya Stock Exchange;

NYK has 60,132 employees globally; and

NYK’s major businesses consist of global logistics based on international

marine transportation business, cruises, terminal and harbour transport,
shipping-related services and real estate.

In October 2016, NYK, Kawasaki Kisen Kaisha (“K Line”) and Mitsui O.S.K.
Line (“MOL”) have announced a joint venture agreement to form Ocean
Network Express Pte Ltd (“ONE”) with the shareholding of 38%, 31% and
31% respectively, to integrate their container shipping businesses. ONE
has commenced services on 1 April 2018.

ABOUT Yusen Logistics Co., Ltd.

(“YLK”) OCEAN FREIGHT
FORWARDING
YLK is a wholly-owned subsidiary of NYK and YLK shares were delisted DIVISION
from the Tokyo Stock Exchange on 29 January 2018;
• Sea Freight Services
YLK has 631 locations in 47 countries and 24,967 employees worldwide • Buyer Consolidation/ Origin
as at 31 March 2022; Cargo Management Services
YLK is one of the leading international air freight forwarders in Japan; and
AIR FREIGHT
Pursuant to a corporate exercise within the NYK Group, YLK became the FORWARDING
immediate holding company of TASCO on 2 April 2012. NYK remains the DIVISION
ultimate holding company of TASCO.
• Air Freight Services
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CHAIRMAN’S STATEMENT

The year in review saw the TASCO Group

reaping the fruit of its efforts even as it
built upon the good momentum gained by
its strategic ventures aimed at securing
long term sustainable growth. Despite
the volatility caused by the COVID-19
pandemic, the Group turned in a record-
high performance.

CHAIRMAN’S
STATEMENT
LEE CHECK POH
NON-INDEPENDENT
EXECUTIVE CHAIRMAN

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CHAIRMAN’S STATEMENT

DEAR VALUED STAKEHOLDERS,

On behalf of the Board of Directors, it is my pleasure and privilege to present to you the Annual Report and
Audited Financial Statements of TASCO Berhad (“TASCO” or “the Group”) for the financial year ended 31 March
2022 (“FY2022”).

A RECORD PERFORMANCE AMIDST CHALLENGING MARKET CONDITIONS

I am delighted to report that TASCO delivered a record performance for the second consecutive year despite the
challenging market conditions brought on by the COVID-19 pandemic. We registered record-high revenue and
earnings in FY2022 on the back of the solid performance of our International Business Solutions and Domestic
Business Solutions segments. Our strategic investments into the Cold Supply Chain business and our investments
over the years into logistics hubs at strategic locations continued to deliver good returns and helped strengthen
our overall performance. All in all, the Group’s business model continued to prove its resilience despite a difficult
operating backdrop.

Over the course of 2021, Malaysia underwent another two Movement Control Orders (“MCO”) as the number
of positive COVID-19 cases and deaths spiked up. MCO 2.0 (which was imposed around mid-January) and
MCO 3.0 (which was imposed in June 2021) both had an adverse effect on the Malaysian economy even as
many economic sectors, except for essential ones, were brought to a standstill. We are grateful that the logistics
services sector which is classified as an essential services sector was able to continue operating over that time.

In mid-June, in an effort to nurse an afflicted Malaysian economy back to health, the Government unveiled a four-
phase National Recovery Plan (“NRP”). By mid-August, under Phase 1 of the NRP, restrictions were relaxed for
those who had been fully vaccinated while more business sectors were able to resume operations. With most
economic sectors reopening by the third quarter of 2021, the Malaysian economy began to recover albeit in a
moderate manner growing to 3.1 per cent in 2021 in comparison to a contraction of 5.6 per cent in 2020. This to
a large extent was owing to the successful rollout of the National Immunisation Programme.

I am pleased to report that in spite of the year’s challenging operating environment, our respective businesses
leveraged their resources resiliently and effectively to deliver the Group’s strongest performance to date. For
FY2022, the TASCO Group garnered record revenue of RM1.48 billion in comparison to RM946.6 million in the
preceding year. This strong performance reflected a stellar RM534.8 million (56.5 per cent) year-on-year (“y-o-y”)
increase in revenue. It also marked the first time that the Group crossed the RM1 billion revenue mark in our
history. The financial year in review also saw the Group’s profit before taxation (“PBT”) increase by RM27.4
million (45.2 per cent) y-o-y to RM88.1 million from RM60.7 million previously, while our profit after tax (“PAT”)
rose by RM24.0 million (55.1 per cent) from RM43.7 million to RM67.7 million.

Revenue for the International Business Solutions (“IBS”) segment soared by a remarkable RM426.0 million or
104.8 per cent y-o-y, while revenue for the Domestic Business Solutions (“DBS”) segment rose by a commendable
RM108.8 million or 20.1 per cent y-o-y. Earnings for both these segments were uplifted on the back of the broad-
based recovery of business activities following the relaxation of MCO restrictions, the uptrend in shipping rates
due to global supply chain disruptions, as well as the increase in business volume of existing and new businesses.

On top of this, the strategic investments that we had made into the Cold Supply Chain (“CSC”) business and
our investments over the years into logistics hubs continued to deliver steady returns. There was strong market
demand within these segments despite the year’s lockdowns and unpredictable operating climate.

For further insights into the Group’s financial and operational performance in FY2022, please turn to the
Management Discussion and Analysis (“MD&A”) section on pages 15 to 24 of this Annual Report.

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CHAIRMAN’S STATEMENT

CONTINUING TO DELIVER VALUE

Over the course of FY2022, while there were no notable corporate developments within the Group, we continued
to deliver value on several fronts.

Ensuring Good Shareholder Returns

TASCO’s Board of Directors remain committed to strengthening the Group’s financial position and growing its
businesses in a sustainable manner. While the Board acknowledges the need to conserve the Group’s capital for
future growth, it also remains committed to delivering value to shareholders by rewarding them for their continued
support and confidence in TASCO.

In respect of the financial year ended 31 March 2022, the Board rewarded shareholders via the payment of a
single-tier interim dividend of 1.0 sen per ordinary share amounting to RM8.0 million on 30 November 2021, and
the payment of a final single-tier dividend of 1.5 sen per ordinary share amounting to RM12.0 million on 20 June
2022.

Moving forward, the Board will continue to maintain the quantum of dividend at a fairly stable level to ensure that
we are able to balance out our desire to reward our shareholders with our aim of strengthening our cash position
to support the Group’s future growth.

Providing Steadfast Customer and Market Support

Being one of Malaysia’s leading logistics companies, we remain focused on continually delivering quality and
value to our customers and the markets that we operate in no matter what the operating conditions are. This was
especially true over the various lockdown phases that we had to contend with.

The year saw us supporting our customers by pushing their products into the market via our e-commerce channels
so that they could continue to generate sales. By being agile and adaptive, we ensured that our operations
remained effective and relevant to the market. As we went all out to optimise our resources to support our
customers and to strengthen long-term relationships with them, we were able to successfully meet their needs
and cement our position as a key holistic logistic solutions provider.

As one of the largest cold chain providers catering to customers mainly within the food and beverage industry,
TASCO boasts a sizeable retail distribution capacity and extensive cold storage capabilities via our CSC business.
This business also provides customised designs for warehousing systems to major convenience food retailers
and a tobacco retail distributor. Today, this business is catering to a total of over 40,000 retail outlets nationwide.
We have also been endorsed by the Department of Islamic Development Malaysia or JAKIM for our halal-certified
storage and transportation capabilities. Via our joint acquisition of Hypercold Logistics Sdn Bhd, we today jointly
own the largest cold chain warehouse facilities and capabilities in Sabah.

Through our Convenience Retail Logistics (“CRL”) business, we serve as a one-stop logistics provider to
convenience retail customers. We believe we are currently the leading third-party logistics provider in the
convenience retail business in Malaysia in terms of business handled. Our customers range from petrol kiosks,
convenience stores and local independent supermarkets, to pharmacies, mom-and-pop stores as well as
hypermarkets and tobacco companies, among others. We are also exploring opportunities in the wellness sector
among other sectors. We boast an extensive CRL capability in the Southern and Northern regions. Not only has
this bolstered our competitive edge, it has moved us closer to our ambition of serving all of Peninsular Malaysia
and establishing TASCO as the service provider of choice within the domestic food retail logistics industry.

As the demand for e-commerce services grows exponentially, we are looking to capitalise on this by enhancing
our logistical proficiencies in the e-commerce market. Being a subsidiary of Yusen Logistics Co. Ltd., one of
Japan’s leading logistics companies, we are able to leverage Yusen’s extensive e-commerce platform to help
our Business-to-Business-to-Consumer (“B2B2C”) customers introduce their products to market. This initiative
underscores our ambition of serving our B2B2C customers by facilitating mutually beneficial relationships between
suppliers of goods and services and online retailers.

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CHAIRMAN’S STATEMENT

Via our collaboration with GD Express Carrier Berhad (“GDEX”), we are able to offer last-mile logistics services
to our e-commerce and retail business customers as a package when they engage us to provide e-fulfilment
services.

Following TASCO’s selection as an Authorised Economic Operator (“AEO”) in the category of forwarder and
warehouse operator, the Royal Malaysian Customs Department (“RMCD”) officially bestowed the AEO certification
and emblem upon us at a ceremony in February 2022. Being an AEO-certified operator, we are able to accord
our customers priority customs clearance; reduced physical inspection of imported or exported goods; faster
release of shipments; and as well as enhanced security and improved risk mitigation. Today, TASCO also enjoys
fast, simple and efficient customs clearance and shipment handling for import or export shipments to and from
countries who already have Mutual Recognition Arrangement agreements with Malaysia.

Despite the year’s tough operating conditions, we are heartened by the good progress we have made to date.
As we venture forth into an uncertain operating climate, we will continue to leverage our resources and business
strategies in a prudent manner to ensure the stability of our business and our customer offerings.

RESPONSIBLE CORPORATE PRACTICES

Our Board recognises it has a responsibility to safeguard TASCO’s future and ensure sustainable value creation
for the Group’s shareholders. As such, the Board continues to observe and implement high standards of
corporate governance as well as robust risk management and stringent internal control measures throughout
our organisation. By leveraging these fundamental measures, the Board aims to deliver consistent value to our
shareholders, preserve our corporate reputation and bolster investor confidence.

TASCO’s board governance policies are guided by the updated Malaysian Code on Corporate Governance
(“MCCG”) 2021 that was released in April 2021. To align with the recommended practices under the MCCG 2021,
we have adopted the Fit & Proper Policy and the Board has reviewed all the existing policies to ensure it is in
compliance with the MCCG 2021.

For detailed insights into TASCO’s commitment to responsible corporate practices, please refer to our Sustainability
Statement on pages 25 to 54 of this report. By ensuring the Group’s sustainable progress, we are providing the
stimuli for our businesses to enhance their operational efficiencies and deliver long-term growth.

MOVING FORWARD INTO FY2023

As TASCO strides forward into FY2023, the Board remains positive but cautious of the Group’s prospects amidst
the uncertainties brought on by the lingering COVID-19 pandemic and possibility of a global recession. For
detailed insights into the outlook and prospects for the Group, please turn to the MD&A section of this Annual
Report. Barring any unforeseen developments, we are positive but cautious that the IBS and DBS businesses will
continue to sustain their resilient performances in FY2023.

The Group’s business model has proved its resilience in the face of the pandemic. While we, to some extent
managed to capitalise on pandemic-driven circumstances that have been in our favour, however, our business
success is very much owing to our strong business fundamentals, the insightful strategies we have brought
into play, as well as our prudent management practices. As we continue to leverage on all these, the Group will
continue to work towards delivering another commendable performance.

In line with our plans to increase our capacity as a total logistics service provider, we have embarked on a large-
scale expansion project involving various warehouses and our headquarters at our Shah Alam Logistics Centre.
This will see us investing some RM520 million over a five-year period to strengthen our logistics infrastructure,
implement automated systems, as well as bolster our IT logistics and logistics handling asset capabilities. We have
also begun to leverage the tax incentives under the Malaysian Investment Development Authority’s Integrated
Logistics Services incentive programme since August 2021. Not only has this effectively given us a lower payable
corporate tax rate for a five-year period, it will enable us to fully leverage our strategic roadmap for diversification,
step out into our next phase of growth, and maintain a strong cash position.

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CHAIRMAN’S STATEMENT

As we move forward, we will continue to closely monitor and improve our operational efficiency so as to keep our
operational costs under control. By consolidating our resources, the Board aims to strengthen TASCO’s market
position as well as prepare us for any further challenges that the pandemic or a global recession might pose.
When it comes to new areas of opportunity, we will exercise a prudent outlook and set our sights on ventures
that will complement and make sense for our business for the long-term. We also intend to continue doing our
bit to support the domestic economy through our numerous offerings and intuitive customer support measures.
Through our innovative logistic solutions, we aim to help our customers thrive, even as businesses adjust to new
market realities. All these measures will help reinforce TASCO’s stance as a reputable and profitable industry
player.

IN APPRECIATION

On behalf of the Board of Directors, I wish to convey my heartfelt gratitude to our hardworking management team
and all TASCO employees. Your diligence, loyalty and commitment to excellence continues to propel the Group
forward to new heights of success. My sincere appreciation to our dedicated Board of Directors for their prudent
insights and wise counsel which helped us to navigate turbulent times and attain another record performance. As
we all work together to ensure the Group’s sustainable growth, I am confident that our united efforts will do much
to reinforce TASCO’s position as a responsible and innovative industry leader.

My utmost thanks to our valued shareholders, regulatory authorities, customers, vendors, business partners and
all our other stakeholders who continue to stand by us amidst the challenges of our marketplace. We certainly
look forward to your continued support as we focus our efforts on ensuring sustainable, long-term value creation.

We call upon all our stakeholders to lend us their steady support as we continue on our journey to success. Thank
you and stay safe everyone.

Lee Check Poh

Executive Chairman
28 July 2022

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MANAGEMENT DISCUSSION AND ANALYSIS

For the year in review, TASCO leveraged

the strategic investments that we had put
in place on the Cold Chain Logistics and
Convenience Retail Logistics fronts to
drive business momentum and generate
sustainable long term value creation.
The performance of these segments,
coupled with the strong performance of the
International Business Solutions and the
Domestic Business Solutions segments, as
well as a pandemic-induced escalation in
shipping rates, helped the Group turn in a
record performance.

MANAGEMENT
DISCUSSION
AND ANALYSIS ANDY LEE WAN KAI
NON-INDEPENDENT
GROUP CHIEF EXECUTIVE OFFICER

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MANAGEMENT DISCUSSION AND ANALYSIS

DEAR VALUED STAKEHOLDERS,

For the financial year ended 31 March 2022 (“FY2022”), TASCO Berhad (“TASCO” or “the Group”) built upon
the good momentum achieved in FY2021 to deliver a record performance for the second consecutive year. The
year’s strong performance was due to strong contributions from our International Business Solutions segment
which capitalised on the rise in freight and shipping rates as well as pent-up demand in various customer
segments following the easing of pandemic restrictions. Our Domestic Business Solutions segment too turned
in a commendable performance as we continued to benefit from the steadfast returns generated by our strategic
investments into the Cold Supply Chain business as well as our investments into logistics hubs at strategic
locations. All in all, FY2022 was a very fruitful year for the TASCO Group and I am pleased to present the finer
details of the year’s financial and operational performance.

ONGOING ECONOMIC CHALLENGES

The year 2021 marked a year of slow but steady recovery as nations began to reopen their economic sectors
while grappling with the continued threat of the COVID-19 pandemic. Global real gross domestic product (“GDP”)
grew to 5.5 per cent from a contraction of 3.4 per cent in 2020 as more countries began to ease up on pandemic-
related lockdowns and measures. While global demand growth steadily strengthened, the increase in global
GDP growth remained hampered by resurgences of the COVID-19 virus. Emerging markets and developing
economies in particular experienced notably slower and more fragile economic recoveries. In the second half of
2021, global activities were affected by supply bottlenecks and inflationary uncertainty as well as supply chain
issues and labour shortages.

While the Malaysian economy embarked on a path of recovery in 2021, progress and recovery momentum
remained volatile for a good part of the year. Malaysia underwent another two Movement Control Orders (“MCOs”)
in 2021 as the number of positive COVID-19 cases and deaths rose exponentially. MCO 2.0 which was imposed
around mid-January, and MCO 3.0 which was imposed in June, both adversely affected the domestic economy
with many economic sectors, except for essential ones, brough to an abrupt standstill.

In mid-June, the Government unveiled a four-phase National Recovery Plan (“NRP”) to help an ailing Malaysian
economy get back on its feet. Under Phase 1 of the NRP, restrictions were eased for those who had been fully
vaccinated and more business sectors were allowed to resume operations. Following the successful rollout of
the National Immunisation Programme most economic sectors began to gradually reopen in the third quarter. For
2021, the Malaysian economy registered a moderate recovery with GDP growing by 3.1 per cent in 2021 against
a contraction of 5.6 per cent in 2020.

We are grateful that given our status as an “essential service provider”, TASCO was able to carry on its business
operations amidst the various MCO phases. Despite the year’s challenges, we continued to leverage on proven
business strategies and marketplace demand in a prudent and measured manner to deliver a sound performance.

OUR BUSINESS

The TASCO Group is part of Yusen Logistics Co. Ltd. (“YLK” or “Yusen”), one of Japan’s leading logistics
companies and a subsidiary of the Nippon Yusen Kabushiki Kaisha (“NYK”) group of companies. As a subsidiary
of Yusen, we have access to Yusen’s global logistics network which boasts over 24,000 employees in more than
630 locations worldwide.

Since our incorporation in 1974, the TASCO Group has grown over the years and today comprises 28 logistics
centres in Malaysia and a strong workforce of approximately 2,200 employees. As one of Malaysia’s leading
total logistics solutions providers, TASCO provides end-to-end solutions to our customers. Our services range
from warehouse and storage solutions to air, sea, and land transportation solutions. Comprising domestic and
international shipment solutions, our services are readily accessible via our one-stop logistics hubs.

Over the last few years, we have actively rolled out various strategies to secure our competitive edge as a holistic
logistics provider within the industry. Our strategy of diversifying our services has seen us venture into trading and
convenience retail logistics services as well as the cold supply chain business.

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MANAGEMENT DISCUSSION AND ANALYSIS

TASCO’s diverse businesses come under the ambit of the Group’s two main business segments, namely the
International Business Solutions (“IBS”) segment and Domestic Business Solutions (“DBS”) segment.

The IBS segment mainly comprises our Air Freight Forwarding division (offering air freight services), and our
Ocean Freight Forwarding division (covering sea freight and buyer consolidation services).

The Group’s DBS segment encompasses our Cold Supply Chain division, the Contract Logistics division (customs
clearance, haulage transportation, warehousing and factory in-plant services), as well as the Trucking division
(domestic trucking and cross-border trucking services). In 2018, we also ventured into the Convenience Retail
Logistics business.

OUR STRATEGIES FOR GROWTH

The TASCO Group remains committed to leveraging proven strategies and exploring new ones to ensure the
delivery of sustainable value to our stakeholders. By tapping effective strategies, we are futureproofing and
strengthening our various businesses so that they achieve and maintain their full capacity for sustainable growth
and long-term value creation.

In anchoring our position as a trusted provider of innovative logistics solutions in the markets that we operate in,
we continue to optimise the length and breadth of our solutions offerings, equip and upskill our workforce, as well
as tap technology and digitalisation to bolster and upscale our operations. We also continue to prudently manage
our existing resources through cost-cutting and operational efficiency measures.

Business diversification continues to be one of our key strategies to ensure sustainable, long-term growth. To date,
our ventures into the Cold Supply Chain and Convenience Retail Logistics businesses have produced positive,
steadfast growth. Moving forward, we will continue to strengthen our market position in these segments, while
prudently exploring new areas of opportunity. Given the current uncertain economic climate, we will approach all
new ventures cautiously and focus primarily on those that will complement our existing businesses.

Developments on the Cold Supply Chain Logistics Front

TASCO’s efforts on the Cold Supply Chain (“CSC”) logistics front come under the purview of our subsidiary,
TASCO Yusen Gold Cold Sdn Bhd (“TYGC”). TYGC is a 70:30 joint venture between TASCO and the Japan
Overseas Infrastructure Investment Corporation or JOIN, a government-private sector-sponsored fund in Japan
that specialises in overseas infrastructure investment. Since its establishment and through strategic acquisitions,
TYGC has grown to become one of the largest cold chain providers in Malaysia with approximately 400
employees, 150 trucks, as well as an over 400,000-sq. ft. retail distribution capacity with more than 56,000 pallets
and extensive cold storage capabilities. TYGC’s capacity growth continues to be mirrored by the increase in the
uptake of tenancy at its cold storage facilities.

TYGC caters mainly to customers within the food and beverage industry. Our customers include manufacturers
of foods and ice cream, quick service restaurants, as well chilled fresh foods vendors involved in producing
ready-to-eat and ready-to-cook foods. To date, TYGC commands an 80 per cent market share in ice-cream
sector logistics. We also offer customised designs for warehousing systems to major convenience food retailers
and a tobacco retail distributor. All in all, we cater to more than 40,000 retail outlets nationwide. On top of this,
TYGC has been endorsed by the Department of Islamic Development Malaysia or JAKIM for the company’s
halal-certified storage and transportation capabilities. Via our own facility at Westport, which serves as a Free
Commercial Zone trans-shipment consolidation hub, we facilitate the onward distribution of halal-certified foods
to their final destinations.

In FY2021, the Group expanded its CSC footprint into the East Malaysian market via its joint 50:50 acquisition
of Hypercold Logistics Sdn Bhd (“Hypercold”) together with Swift Haulage Berhad. Not only has this acquisition
accorded the Group the largest cold chain warehouse facilities and capabilities in Sabah, it also bodes well for
our subsequent expansion into this region. Today, the Hypercold operations are running at near-capacity and
we are currently in the process of expanding the warehouse capacity from 3,000 pallets to 5,700 pallets. This is
expected to be operational by April 2023.

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MANAGEMENT DISCUSSION AND ANALYSIS

Moving forward, we intend to grow our CSC business through the expansion of our customer base. To this end,
TYGC underwent auditing by the Japanese Standards Association (“JSA”) for the JSA-S1004 by Japan NK Class
certification and attained this certification on 28 July 2022. We are proud that TYGC is the first company within
ASEAN to receive this certification. Even as this enables TYGC to be the preferred cold chain logistics provider
regionally, our partnership with JOIN too will help facilitate TYGC’s entry into new markets. Moreover, our CSC
business is expected to benefit from the Yusen Group’s plans to further expand its activities globally.

In addition, we have been exploring opportunities with pharmaceutical companies to see how we can play a more
active role in the pharmaceutical logistics space. Given that TYGC’s subsidiary, Gold Cold Transport Sdn Bhd,
has attained Good Distribution Practice or GDP certification in the areas of handling, storage, warehousing and
transportation of prescription drugs, medicines and healthcare products, we are now in a position to undertake
such activities.

While the majority of operations in the cold chain sector have relied mainly on manual processes, we aim to
change this by incorporating more IT and automated processes in our cold chain operations. We are currently
exploring the feasibility of incorporating more semi-automated processes and robotic services into our operations.
We also remain open to exploring merger and acquisition opportunities with regional players to expand our cold
chain facilities and warehouse space.

Capitalising on Growth in the Convenience Retail Logistics Segment

TASCO first ventured into the Convenience Retail Logistics (“CRL”) business in 2018 as a means to capitalise
on the shift by urban consumers towards convenience food retail store networks. Serving as one-stop logistics
provider, TASCO specialises in restocking convenience retail outlets. We liaise with suppliers on behalf of their
customers and provide inventory management, warehousing and logistics solutions. Being part of the Yusen
Group, our customers are also accorded access to our international network, regional coverage and end-to-end
solutions.

From our initial customer base of retail and chain outlets encompassing petrol kiosks, convenience stores,
hypermarkets, local independent supermarkets and pharmacies, we went on to expand our customer base by
catering to smaller traders or mom-and-pop stores. In FY2021, we began providing our services to tobacco
companies. Today, we are looking to offer our services to the wellness sector among other business sectors.

While our CRL business lost some momentum in FY2021 under the operational and interstate travel restrictions
brought on by the first MCO, we eventually completed our planned expansion into the Southern and Northern
regions. Today our extended premises in Johor and Penang feature state-of-the-art conveyance and sorter
systems. This strategic move bodes well for both our CRL and CSC businesses as it completes our food retail
logistics storage and state-of-the-art sorting capabilities throughout Peninsular Malaysia. This expansion not
only strengthens our competitive edge, but it also helps us fulfil our ambition of serving all of the Peninsula. This
strategy underscores our aim to establish TASCO as the service provider of choice within the domestic food retail
logistics industry.

As per our CSC business, we will also be implementing more automated processes in all our CRL warehouses.
By incorporating automation, we aim to ensure greater efficiency in the running of our operations. This in turn will
enable us to focus on reaching smaller retail businesses in a more effective manner.

Making the Most of Other Opportunities

During the height of the pandemic circa 2020-2021 the e-commerce market saw unprecedented growth amid
the various economic lockdowns. Even with many countries declaring their transition to the endemic phase with
reduced restrictions and fully open economic sectors, the e-commerce market still continues to grow rapidly.

In 2021, Malaysia was ranked the 35th largest market for e-commerce with a revenue of US$6.3 billion. Registering
a growth rate of 30 per cent in 2021 alone, the Malaysian e-commerce market is expected to register a minimum
yearly growth rate of 15 per cent between 2021 and 2025. The Malaysian market has also been forecast to
outperform the global average of 6 per cent.

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MANAGEMENT DISCUSSION AND ANALYSIS

To support this projected growth and the nation’s drive towards digital transformation, the Malaysian Government
has implemented several digital initiatives. These include the comprehensive five-year national digital infrastructure
plan Jalinan Digital Negara or JENDELA; the Micro, Small and Medium Enterprises E-Commerce Campaign; the
launch of the MyDIGITAL initiative to anchor Malaysia’s digital economy by 2030; and the establishment of the
National eCommerce Council.

On the international front, the ASEAN Digital Free Zone (“DFTZ”) initiative is set to expedite cross-border logistics
and e-commerce transactions in an unprecedented manner throughout the region.

As part of TASCO’s response towards the growing demand for e-commerce, we continue to develop our logistical
proficiencies in the e-commerce market. Today, we continue to leverage Yusen’s extensive e-commerce platform
to help our Business-to-Business-to-Consumer (“B2B2C”) customers introduce their products to market. This
initiative is part of our aim to serve our B2B2C customers by facilitating mutually beneficial relationships between
suppliers of goods and services and online retailers.

Furthermore, TASCO’s collaborative venture with GD Express Carrier Berhad (“GDEX”) positions us to offer last-
mile logistics services to our e-commerce and retail business customers market as a package when they engage
us to provide e-fulfilment services. TASCO’s mutually beneficial collaboration with GDEX provides GDEX with our
numerous logistical resources while giving us priority access to their last-mile fulfilment capabilities. There is also
potential to integrate TASCO’s fulfilment solutions e-Tower offering with the myGDEX online shipping platform.
As all these developments play out, we expect our e-commerce business to enjoy steady growth over the next
few years. Having firmly established our e-commerce capability, we are now ready to take on more customers.

As part of our aim to increase our capacity as a total logistics service provider, the Group has also embarked on
a large-scale expansion project involving various warehouses and our headquarters at our Shah Alam Logistics
Centre (“SALC”). Our expansion plans call for us to invest approximately RM520 million between August 2021
and August 2026 to expand our logistics infrastructure, implement automated systems, as well as strengthen our
capabilities in terms of IT logistics and logistics handling assets.

The first phase of construction (620,000 sq. ft.) of our main warehouse at the SALC is expected to be completed
by January 2024, while the third phase (400,000 sq. ft) will be completed in the year 2025. Once completed,
TASCO’s new, modern four-storey warehouse will be the tallest warehouse in Malaysia, boasting over one million
sq. ft. of space. Under the second phase of construction, the main offices of the Group’s current headquarters
will be moved to another area on the same property and will incorporate a more contemporary design. The
construction of the new headquarters is expected to be completed by the second half of 2023. All in all, our
expansion measures are expected to create more than 100 employment opportunities once they are rolled out.

Our Westport facility is also undergoing expansion and the new facility (to be completed by October 2023) will
be fitted out with solar panels that will garner estimated energy savings of some 15 per cent. This initiative will
complement our efforts on the Environmental, Social and Governance (“ESG”) front.

The Group’s expansion plans have been sanctioned under the Malaysian Investment Development Authority’s
(“MIDA”) Integrated Logistics Services (“ILS”) incentive programme. Under the ILS incentive programme, logistics
companies are entitled to tap substantial income tax exemption and other incentives over a five-year period via
the investment tax allowance offered under the scheme. This initiative also aims to get more Malaysian logistics
companies to make long-term capital expenditure investments and establish themselves as regional logistics
hubs. Under the ILS, we will be able to fully implement TASCO’s strategic roadmap for diversification, while
stepping out into our next phase of growth and ensuring that we retain a strong cash position.

Continual Alignment with Yusen’s “Transform 2025” Roadmap

Being a subsidiary of the Yusen Group, TASCO is committed to ensuring that our long-term strategies are aligned
with the Yusen Group’s shared vision and roadmap for the future – “Transform 2025”. Transform 2025 also spells
out the Group’s code of business conduct that all members of the Yusen family are expected to adhere to for
long-term value creation.

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MANAGEMENT DISCUSSION AND ANALYSIS

To create sustainable business value for our customers, we continue to offer them a spread of offerings that
combine Yusen’s unique technology and innovation. The advanced global supply chain solutions from Yusen
include advanced tracking for every stage of the logistics supply chain, from procurement to delivery. Whether it
is lead logistics or fourth-party logistics solutions, order management and control tower solutions, or IT solutions,
our customers can take advantage of solutions at any stage of the logistics supply chain as well as track all
connection points, from the start of the journey, to the last mile.

As part of a collaborative effort to develop a cold chain capability and network in the South Asian Ocean Region
(“SAOR”), Yusen is combining its operations in Japan, Thailand and Malaysia. TASCO is playing its part in
upholding Yusen’s regional ambitions by augmenting TYGC’s capabilities as a cold chain logistics provider. Being
the only Malaysian company that is able to provide cold chain services at the international level by virtue of being
able to tap its own international network, TYGC is well positioned to spearhead Yusen’s strategic ambitions within
SAOR as well as help TASCO expand its international footprint.

OUR FINANCIAL PERFORMANCE

Group and Segmental Revenue

I am pleased to report that despite the year’s challenging operating environment, our respective businesses
leveraged their resources resiliently and effectively to deliver the Group’s strongest performance to date.

For the financial year ended 31 March 2022 or FY2022, the Group turned in record revenue of RM1.48 billion
reflecting an increase of RM534.8 million (56.5 per cent) year-on-year (“y-o-y”) from the RM946.6 million garnered
in FY2021. The International Business Solutions or IBS segment recorded a stellar RM426.0 million (104.8 per cent)
y-o-y jump in revenue from RM406.4 million to RM832.4 million, while the Domestic Business Solutions or DBS
segment recorded a commendable RM108.8 million (20.1 per cent) y-o-y rise in revenue from RM540.2 million to
RM649.0 million.

The broad-based recovery of business activities and reopening of the economy in stages pursuant to the NRP,
coupled with global supply chain disruptions, prompted customers to source for more shipment modes for their
cargoes. At the same time, they sought out better supply chain solutions and warehouse space offerings to store
their inventory so as to mitigate supply chain disruptions to their businesses. All these developments led to much
improved revenue and profits for both TASCO’s IBS and DBS segments in FY2022.

Within the IBS segment, the Air Freight Forwarding (“AFF”) division posted an impressive RM224.0 million (77.6
per cent) y-o-y increase in revenue from RM288.6 million to RM512.6 million. This was largely attributable to
a hike in the volume of customers and business transactions in areas relating to automotive parts, aerospace
components, electronic components, semiconductors, capacitors, healthcare, business equipment, car rubber
mat manufacturing, as well as synthetic resin and polymer manufacturing.

Meanwhile, revenue for the Ocean Freight Forwarding (“OFF”) division soared by RM201.9 million (171.5 per
cent) from RM117.8 million in FY2021 to RM319.7 million in FY2022. This was primarily due to elevated sea
freight rates and newly secured customers, coupled with an increase in business volume from existing customers.

Within the DBS segment, the Contract Logistics (“CL”) division posted a robust RM86.1 million (25.1 per cent)
y-o-y increase in revenue from RM342.5 million to RM428.6 million. The CL division’s record surge in revenue
came on the back of a newly-secured food manufacturing customer coupled with increased cargo and shipments
volume from existing electronic and electrical (“E&E”), solar panel, musical instrument, semiconductor, flooring/
timber products and consumer retail customers.

Revenue from the CL division’s Customs Clearance business rose by RM48.8 million (34.2 per cent) y-o-y from
RM142.6 million to RM191.4 million, while revenue from the Haulage business went up by RM4.8 million (7.7
per cent) y-o-y from RM61.8 million to RM66.6 million. Meanwhile, revenue from the Warehouse business hiked
up by RM27.4 million (23.9 per cent) y-o-y from RM114.8 million to RM142.2 million. The increase in Warehouse
revenue was also attributable to increased demand for warehouse space as the COVID-19 pandemic and supply
chain disruptions prompted many manufacturers to source additional storage space for their inventories. At the
same time, revenue from the In-plant business rose by RM5.1 million (22.0 per cent) y-o-y from RM23.3 million
to RM28.4 million.

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MANAGEMENT DISCUSSION AND ANALYSIS

The Cold Supply Chain or CSC division continued to contribute consistent revenue to the DBS segment, posting
an increase of RM9.8 million (7.8 per cent) y-o-y from RM126.0 million to RM135.8 million. The increase in
CSC revenue came mainly from the ice-cream, poultry and meat businesses as well as newly-secured retail
customers.

As for DBS’ Trucking division, its revenue rose by RM12.8 million (17.9 per cent) y-o-y from RM71.8 million to
RM84.6 million. This was primarily due to the increase in new healthcare, food manufacturing, E&E and fast-
food chain customers, coupled with increased deliveries for existing E&E, consumer retail, automotive as well as
cross-border Thailand and Singapore trucking activities.

Group and Segmental Profits

In FY2022, the Group’s profit from operations rose to RM100.2 million from RM74.8 million, marking a RM25.4 million
(33.9 per cent) y-o-y improvement. TASCO’s profit before taxation (“PBT”) for FY2022 increased y-o-y by RM27.4
million (45.2 per cent) from RM60.7 million to RM88.1 million, while our profit after tax (“PAT”) increased y-o-y by
RM24.0 million (55.1 per cent) from RM43.7 million to RM67.7 million.

Following the increase in revenue and better profit margins in the IBS segment, PBT for the IBS segment surged
by 142.8 per cent (RM36.6 million) y-o-y from RM25.6 million to RM62.2 million. The financial year saw the IBS
segment’s AFF division doubling its PBT from RM22.6 million to RM47.6 million, an increase of RM25.0 million
(110.7 per cent) y-o-y. Meanwhile, PBT for IBS’ OFF division soared by RM11.6 million (381.3 per cent) y-o-y from
RM3.0 million to RM14.6 million.

Within the DBS segment, PBT was uplifted by RM10.1 million (24.0 per cent) y-o-y from RM42.3 million to
RM52.4 million. The increase in PBT was contributed by both the CL and Trucking divisions. FY2022, saw the
PBT of the CL division rising from RM34.4 million to RM43.3 million, reflecting a RM8.9 million (25.7 per cent)
improvement. The higher PBT for the CL division mainly came on the back of contributions from the Warehouse
and Haulage businesses which contributed PBT increases of RM8.9 million (46.5 per cent) and RM0.5 million
(6.6 per cent) respectively. Meanwhile, the Custom Clearance business posted a marginal increase of RM0.03
million (0.7 per cent). The increase in PBT was partially offset by a PBT drop of RM0.6 million (17.3 per cent) from
the In-Plant business – from RM3.3 million to RM2.7 million – due to rising labour costs. For FY2022, PBT for the
Trucking division improved from a loss before tax (“LBT”) of RM2.0 million to PBT of RM0.6 million, an increase
of RM2.7 million (130.4 per cent) y-o-y on the back of increased sales and improvements in truck fleet utilisation.

On the other hand, the CSC division registered a decrease in PBT of RM1.4 million (13.7 per cent) despite
higher sales. This was mainly attributable to start-up operating expenses incurred for a consumer retail business,
increased non-operating expenses related to a loss on the write-off of a block of warehouse building located at
our SALC, as well as a reduction in other income and interest received from short-term placement with banks.

However, PBT for the above business segments was significantly offset even as the Group registered an
exceptional one-time expense which amounted to RM15.9 million under the Support segment. This expense
related primarily to the write-off of the balance of the net book value of a warehouse block located at our SALC.
The warehouse block comprising a 180,000 sq. ft. single-storey building was demolished to make way for
reconstruction of a new four-storey modern warehouse which will expand the Group’s future logistics capacity.

In terms of PAT, the Group registered a RM24.0 million (55.0 per cent) increase from RM43.7 million to RM67.7
million. In FY2022, the Group also began utilising its the investment tax allowance under the ILS incentive
programme, resulting in a lower effective corporate tax rate (i.e., 23.2% in FY2021 vs. 28% in FY2022).

Gearing and Liquidity

As at 31 March 2022, with total borrowings amounting to RM252.9 million, TASCO’s gross gearing remained flat
at 0.43 times in comparison to 0.51 times as at 31 March 2021. The Group’s financial position remains secure
given our strong balance sheet. As at 31 March 2022, we had in hand cash and cash equivalents amounting to
some RM87.5 million (31 March 2021: RM110.9 million).

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MANAGEMENT DISCUSSION AND ANALYSIS

While we are in a position to further increase our gearing and capitalise further on investment opportunities, we will
continue to adopt a prudent and cautious approach towards further bank borrowings. Ideally, we want to stabilise
and grow the Group’s cold chain and contract logistics businesses before we embark on any new ventures.

BUSINESS RISKS AND MITIGATION MEASURES

As TASCO makes strong strides forward amidst an uncertain operating environment, we acknowledge the various
risks that may have a material effect on the Group’s operations, performance, financial condition and liquidity. In line
with efforts to mitigate these anticipated and known risks, we have established several risk mitigation strategies.

In the area of Operational Risk, the Group’s risk management efforts are focused mostly on the various hazards
that logistics players typically face. To mitigate the potential loss of assets or customer cargoes as a result of fire,
all our warehouses are required to follow a rigorous fire safety inspection schedule. On top of this, smoking is
strictly prohibited at our facilities and we have allocated specific storage spaces for highly flammable cargo and
materials. At our warehouses, the various warehouse and safety teams have oversight for fire safety management
and all team members are trained in firefighting. They are also responsible for ensuring all firefighting systems
and equipment are properly maintained, and that fire extinguishers are situated in the proper designated areas. To
protect our business, we get our customers to agree to our standard trading terms which state that TASCO will not
be held liable for any loss or damage to our customers’ cargoes in the event of a fire.

When it comes to Market/Business Risks, one of the biggest risks is the potential loss of major customers and
key accounts. To mitigate these risks, we remain committed to nurturing strong partnerships with our customers
as well as are focused on delivering above and beyond their expectations to cultivate customer loyalty. Our efforts
are guided by customer progress reports which are provided by the director in charge of customer development.
In tandem with the Group’s overall business plan, we have applied our strategy for diversification to our customer
base – this ensures that we are not over-reliant on a sole customer, industry or sector. To mitigate the risk of an
account producing losses, we work closely with our customers to manage their costs, as well as review the terms,
conditions, validity and rates so that they are mutually beneficial. In addition, accounts considered as being at risk,
are monitored closely by our division head who is tasked with investigating them and providing progress updates.

To ensure the sustainable growth of our business, financial stability is of paramount importance. To reduce Financial
Risks involving liquidity and cash flow risk (i.e., not having sufficient cash funding and credit facilities to operate
our business and fulfil our financial commitments), we continue to implement several proactive measures. For
instance, our Head Office, which has oversight for centralised cash management activities, ensures that stringent
monitoring and control methods are in place. As part of efforts to preserve our operating, investing and financing
activities, all TASCO’s business units are monitored to ensure that they constantly exhibit optimum levels of
liquidity (i.e., each business unit is required to be in possession of cash-convertible assets which are reserved for
emergency payments). We achieve this by ensuring efficient working capital management (i.e., accounts receivable
and accounts payable management). In line with the nature of the Group’s businesses, we remain committed to
exercising effective working capital management measures while ensuring that sufficient credit lines have been
established and reserved for our liquidity requirements.

On the Information/System Risk front, we have undertaken diverse measures to secure the Group’s IT infrastructure.
These measures aim to mitigate the risk of data loss due to improper data backup management or from server
crashes due to viruses or potential cyber-attacks. To reduce the potential of business data loss, we continue to
utilise RAID 5 hard disks and undertake daily backup of our data to tapes which are stored offsite. As added
protection, all the Group’s production servers have been insured with next-business-day warranties. We are also
continuously assessing the security of the operating systems within our network to ensure they are kept updated
and safe from external threats including viruses and hackers. Moreover, we proactively ensure that up-to-date anti-
virus solutions, high grade firewalls and secure network configurations are in place.

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MANAGEMENT DISCUSSION AND ANALYSIS

Topmost on our list of priorities is the safety and wellbeing of our people. Right from the onset of the COVID-19 pandemic,
we have been fully committed to mitigating the risk of potential infections at all our workspaces and warehouses. Our
rigorous COVID-19 standard operating procedures (“SOP’s”) are overseen by our MCO Committee and COVID-19
Committee who help to ensure that our operations are compliant with the Ministry of Health’s regulations. As the
nation moves towards the endemic phase and the once-stringent SOPs have become more relaxed, our workforce
continues to observe the necessary SOPs. Our committees continue to uphold the Group’s business continuity plan
and oversee all risks related to business disruption caused by the pandemic. Over the course of the pandemic, while
we did proactively implement various measures to control and reduce pandemic-related costs, we did not have to
retrench any employees or implement any employee pay cuts.

OUTLOOK AND PROSPECTS

Given that the health of the logistics industry is closely aligned with economic activity and international trade, the
prospects for the TASCO Group are closely tied to the performance of the global and Malaysian economy.

As per the World Bank’s Global Economic Prospects flagship report published in June 2022, the global economy
continues to suffer from a series of destabilising shocks. This was evident in the first half of 2022 as global growth
slowed markedly due to COVID-19 resurgences at the turn of the year; prolonged supply disruptions; subdued
macroeconomic support; and substantial negative spillovers from the war in Ukraine. The Ukraine conflict, which
has sparked the largest commodity price shock in 50 years, has aggravated the increasingly difficult policy trade-offs
between supporting growth and managing price pressures. It has played a part in the tightening of global financial
conditions, increased financial market volatility and higher borrowing costs, particularly in emerging markets and
developing economies.

All these have steepened the slowdown in global growth, with the World Bank predicting that global economic activity
will decelerate to 2.9 per cent in 2022 from 5.7 per cent in 2021. For 2023, global growth is forecast to edge up only
slightly to a still-subdued 3.0 per cent as many headwinds – in particular, high commodity prices, and continued
monetary tightening – are expected to persist. The outlook is also subject to various downside risks, including
intensifying geopolitical tensions, growing stagflationary headwinds (when slow economic growth and joblessness
coincide with rising inflation), rising financial instability, continuing supply strains, and worsening food insecurity.

In its Malaysia Economic Monitor (June 2022) publication, the World Bank has highlighted that Malaysia’s economy is
on an upward track to recovery from the pandemic following a successful vaccination drive and the full withdrawal of
movement restrictions. The economy is projected to expand 5.5 per cent in 2022, driven mainly by a strong rebound
in consumption. Malaysia’s labour market is improving, with the unemployment rate decreasing from 4.3 percent in
Q4 2021 to 4.1 percent in Q1 2022. To further sustain recovery, a key priority for Malaysia is to address the economic
impact of COVID-19 by gradually rebuilding fiscal buffers through increased revenue collection and greater spending
efficiency. While there is a surge in growth, external headwinds and global uncertainties pose a challenge and add to
the country’s downside risks.

Bank Negara Malaysia (“BNM”) too is maintaining its previous positive forecasts for growth in the range 5.3% to
6.3% as per its Economic and Monetary Review 2021 published at end March 20212. BNM expects the recovery
in the Malaysian economy to gain momentum in 2022, underpinned by continued expansion in external demand,
full upliftment of COVID-19 containment measures, reopening of international borders and further improvements
in labour market conditions, amongst other factors.

BNM also believes that the external sector will continue to be supported by strong global demand for E&E
products amid the continued technology up-cycle. Gross exports are projected to grow by a more moderate 10.9%
in comparison to growth of 26% in 2021, while gross imports are expected to rise by just 8.1% in comparison to
more robust growth of 23.3% in 2021. While Malaysia is expected to feel the impact from the Ukraine conflict,
however, the corresponding rise in global commodity prices is expected to provide support to commodity exports
and some lift to nominal incomes.

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MANAGEMENT DISCUSSION AND ANALYSIS

Nevertheless, risks to domestic growth remain tilted to the downside. These risks are expected to include spillovers
from the war in Ukraine, renewed outbreaks of COVID-19 in China and subsequent lockdowns as well as a further
escalation of the property sector crisis, the slower-than-expected rollout of domestic public infrastructure projects,
a domestic resurgence of COVID-19, more persistent labour shortages, supply chain disruptions, higher inflation,
increased vulnerability among affected Malaysian households and businesses, relatively high levels of household
and corporate debt, increased fiscal risks, and the risk of an uneven recovery across states in Malaysia.

Amidst this challenging economic backdrop, the TASCO Group remains confident that the Group’s business
model will continue to prove its resilience. Not only did we manage to surpass RM1 billion in sales for the first
time in our history in FY2022, we also registered our highest-ever profit to date. The better all-round broad-based
performance of our IBS and DBS segments signifies the depth and strength of our businesses.

Going forward into the new financial year, many countries, including Malaysia, have started to embark on a policy
of living with the virus in order to continue economic activity. We are optimistic that post-pandemic recovery
and reopening up of the economy augur well for us as the logistics business thrives on economic activity and
international trade. While things were undoubtedly in our favour over the course of the pandemic and we managed
to capitalise on market trends, we also believe that our strong business fundamentals, insightful strategies and
prudent management will continue to see us through.

We have begun to leverage the tax incentives under the ILS incentive programme since August 2021 which
will effectively give us a lower payable corporate tax rate for a five-year period. Looking into the prospects of
the Group for the next financial year, barring any unforeseen circumstances, we are positive but cautious of
our performance. Downside risks for the Group will be the inflationary pressures on operating costs (including
the effect of the forthcoming minimum wage increase), labour shortages and the potential appearance of new
COVID-19 variants which may cause a rollback in the reopening of the economy. While the Group does not
have any significant exposure to the economic activity in Russia and Ukraine, nevertheless the wider economic
ramifications caused by the Ukraine conflict may be felt by us in the form of higher energy expenses and other
costs.

As the TASCO Group strides forward amidst an uncertain economic climate, we will continue to carefully monitor
and adapt to the conditions of the markets that we operate in. We will continue to maintain our strategy of offering
our customers excellent service and innovative logistics solutions while expanding our logistics capacity where
it makes good business sense to do so. We intend to focus our efforts on building up our capabilities in existing
areas of opportunity that will prove most beneficial to our progress. We will also move forward in a measured
manner and adopt a cautious stance when it comes to considering ventures into new areas of opportunity.

TASCO is committed to remaining agile and adaptable to the fast-evolving global landscape and new market
realities. To ensure our competitive edge, we will strengthen our gameplan so that we remain relevant to our
markets and target audiences. To ascertain that our customers have access to all our services, we will keep a
laser-focus on our strategy of offering one seamless window to our customers.

In closing, I want to reiterate that TASCO will work hard to understand our customers’ expectations and meet their
needs for timely and safe delivery. As we delight our customers in innovative ways, we are confident that we will
reinforce our position as a leading total logistics player and deliver good shareholder value in a responsible and
sustainable manner.

Thank you for your kind support. Stay safe everyone.

Andy Lee Wan Kai

Group Chief Executive Officer
28 July 2022

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SUSTAINABILITY STATEMENT

ABOUT TASCO BERHAD

TASCO was incorporated on 10 September 1974 and listed on the Main Market of Bursa Malaysia Securities
Berhad on 28 December 2007. TASCO is a subsidiary of Yusen Logistics Co. Ltd., which in turn is a subsidiary of
Nippon Yusen Kabushiki Kaisha. TASCO has 28 logistics centres and 2,200 employees in Malaysia. It is a part
of the global network of Yusen Logistics Co. Ltd having 631 locations and 24,967 employees worldwide as at 31
March 2022.

TASCO offers total logistics solutions covering air, sea and land transportation. It serves as a one-stop logistics
centre to handle domestic and international shipments for the customers.

TASCO has categorised its services into International Logistics Solutions and Domestic Logistics Solutions

OUR ESG STRATEGY

Our ESG strategy is centered around three core commitments, which encompass the areas that our Executive
Leadership Team, in dialogue with our key stakeholders, has determined as priorities within the three (3) pillars;
environment, social and governance dimensions.

These commitments provide a framework for taking targeted action within seven (7) ESG theme categories that
represent areas where we believe TASCO can create the greatest positive impact for the world

The Board of Directors

Executive Directors

The Management Team

Our governance of sustainability comes from the top of our organisation. The Board has the ultimate responsibility
to ensure sustainability is taken into account when setting the strategic direction of the company.

SUSTAINABILITY GOVERNANCE STRUCTURE

MANAGEMENT
COMMITTEE (MC)

Healthy, Safety and Sustainability

Environment Council Working Committees

Governance
Customer Shareholder Employees Environment Compliance
& Business
Working Working Working Working Working
Ethics Working
Committee Committee Committee Committee Committee
Committee

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SUSTAINABILITY STATEMENT

MATERIALITY AND STAKEHOLDER ENGAGEMENT

The Company has identified key stakeholders who are impacted by or have the ability to influence the Company’s
operations and business. Engagement with the stakeholders will assist in better understanding on the sustainability
expectations that allows the Company to make business decisions that promote a sustainability society in the
future.

The Stakeholder Engagement Matrix below highlights the stakeholder engagement activities that we implemented
during the financial year:

Stakeholders Area of Focus Platforms and Tools Utilised

Shareholders / Investors • Business directions • Bursa announcements
Bankers / Media and • Business performance • Corporate website
Analyst • Corporate development • Press conferences and media releases
• Prospect and Strategies • Annual General Meeting / Extraordinary General
• Business risks Meeting
• Return on Investment • Quarterly Results
• Periodic engagements with equity analysts and
fund managers
Government / Regulators • Regulation and compliance • Reports and policies
• Accuracy, transparency and • Corporate website
disclosure • Site visits
Business Partners • Business direction • Meetings, briefings and workshops
• Knowledge sharing • Participation in exhibitions
• Safety procedures
Customers • Business direction • Meetings
• Knowledge sharing • Customer support centre
• Service culture • Customers surveys
Employees • Career development • Regular communications via email blasts,
• Welfare and benefits newsletter and memo
• Working environment • Performance management system
• Training • Training programme and briefings
• Job performance • Employee activities and events
evaluation • Internal surveys
• Employment equality • Written policies and procedures
Local Communities • Business opportunity • Engagement events and activities
• Employment support • Education and development programmes
• Education and social
assistance
• Social responsibility

The Company values the feedback from stakeholders, and thus all the departments continuously empowered to
actively engage with stakeholders and take the necessary steps to address issues raised by stakeholders. The
Company believe that through active engagement with stakeholders, the Company would be able to stay updated
with the issues and concerns of stakeholders.

MATERIAL MATTERS

The objective of the Group is to provide the facility of advanced and high-quality logistics services to maximize
our corporate value through winning the trust of our clients and, ultimately, contributing to the advancement of the
economy as a world-class global corporation.

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SUSTAINABILITY STATEMENT

To achieve our objective, our business activities must comply faithfully with the by-laws and regulations of both
local and international regulations, and to be fair in-practice in conformity with social norms. At the same time, our
business activities are built based on our human resources, the greatest asset of the Group. We believe that the
betterment and enrichment of the capabilities of our manpower will lead to our growth as a truly global company.
The Group also puts attention to the quality, environment, occupational safety & health and society.

ENVIRONMENT

As part of the Group initiatives to protect the environment, we are moving towards increasing the usage of
alternative fuel such as biodiesel. Fleet replacement plans had been implemented since 2012 for better fuel
savings. Whereas, in the warehouse, we are gradually moving towards the usage of electrical based material
handling equipment since 2021. On the other hand, our cold chain segment has been certified with ISO 14001:2015
Environmental Management System (EMS) and ISO 9001:2015 Quality Management System (QMS). We strictly
adhered to the requirements of the ISO standards, there was no environmental compound and penalty imposed
by the authority during the financial year under review. Our environmental and compliance officer, who is certified
by Department of Environment (DOE) and CEPSWAM had been monitoring strictly on the environment aspect.
All the petroleum and lubricant waste is stored in the disposal shed and is systematically disposed according to
the scheduled waste disposal programme. During the financial year, the petroleum and lubricant waste disposal
increased to 46.01mt3 compared to 29.2 mt3 in 2020 compared to 38.02 mt3 in 2019 and 64.09 mt3 in 2018.
These was due to increase in number of fleet and increase in fleet movement. However, our company still show
commitment to reduce the impact of waste on the environment and accordance to Environmental Quality Act
1974.

To contribute to the global environment and the creation of sustainable societies by managing environmental
risks and arriving at an optimal balance between environment and economy:

OUR THREE STRATEGIES:

Strategy 1. Reducing greenhouse gas emissions

Strategy 2. Promoting social contribution through activities to conserve the global environment
Strategy 3. Strengthening group environmental management

OUR ENVIRONMENTAL GREEN POLICY

1. We adopt responsible practices with due regard to the environmental impacts of our corporate activities.
We set and continually review objectives and targets for achieving our goal to protect our entire global
environment and biodiversity.
2. We seek not only to comply with safety and environmental regulations but also to implement in-house
standards to improve our environmental performance and prevent pollution.
3. We commit ourselves to the safe operation of all our services via sea, land, and air, as well as operations at
sea, terminals, and warehouses.
4. We seek to reduce environmental loads by efficiently using resources, saving energy, reducing waste,
encouraging material recycling, and particularly by minimizing emissions of greenhouse gases, ozone-
depleting substances, and toxic matter.
5. We endeavor to minimize environmental loads and adopt environmentally friendly technologies when
ordering and purchasing necessary resources, such as vessels and aircraft, for transportation services and
cargo operations.
6. We endeavor to use education programs to raise environmental awareness among our employees and to
ensure that they recognize the essence of this Green Policy by actively addressing environmental concerns.
7. We make wide-ranging social contributions in close partnership with local communities by disclosing
environmental information and supporting environmental conservation initiatives

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OUR COMMITMENT ON ENVIRONMENT

We are committed to implement an environment

management system in compliance to ISO
14001:2015. We recognize and accept the
responsibility of prevention of pollution,
preservation of natural resources and protection
of our environment. Through integrating ISO
14001:2015 into our services and operations,
these objectives will then be achieved through
adherence to the following principles:-

AIMING AT NET-ZERO GHG EMISSIONS BY 2050

Our immediate holding company Yusen Logistics Co., Ltd. (President: Toru Kamiyama) aims to achieve net-zero
GHG emissions ⁽*⁾ for all services by 2050 as the Group’s environmental target. As an interim target, we have
decided to start providing net-zero GHG emission services by 2030.

Our Road Map to World target 2030/2050

TF2025
1st Year

Long (2025-30/50)

New Medium-Term
BE
SUSTAINABLE
Middle (Apr2022-2025) Management Plan :
2022 become global
1st year of ESG leading company

BE
Short (Mar 2022)
management
As-Is ESG Story

CHOSEN
No 1 assigned

ESG management leads

Preparation for ESG

management through
PDCA by each task
establish ESG culture/
to win-win relationship
with customers and
brings us company
BE
PROUD
CEO vision statement philosophy leading
EcoVadis certification new biz model prosperity
Grasp GHG emission KPI Management
E (Environment) Scope 1/2/3
Set-up Targets
Service Product

Sub Contractor KPI Management

S (Social) guideline D&I/Turn-over
Set-up targets
Engagement
Transparent
G (Governance) Documentation Strengthen Structure
Management

As the entire world works together towards net-zero GHG emissions by 2050, we recognize that addressing
climate change as one of our company’s most urgent and critical challenges. We have created a brand promise
“Create Better Connections” to summarize our management ambition. It explains that we want to connect to a
better future by building closer relationships and ties across the world with all stakeholders. Under “Create Better
Connections,” we will act as a bridge between all stakeholders, including customers and business partners, and
contribute to the realization of a sustainable society by working together to solve global environment and social
issues.

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We define “Our Mission” to become the world’s preferred supply chain logistics company – applying insight,
service quality and innovation to create sustainable growth for business and society. As a strategic partner to
generate sustainable growth with our customers, and as a core company of the NYK Group whose growth strategy
is ESG management, we will continue to promote initiatives based on a long-term sustainable perspective.

OUR ACTIVITIES ON ENVIRONMENT

The Group is also committed to environmental protection and stewardship. The Group recognizes that pollution
prevention, biodiversity and resource conservation are keys to a sustainable environment and will effectively
integrate these concepts into our business decision-making.

The following are being carried out:-

1. Recycling of waste is conducted at all major warehouses and offices.
2. Reduce emissions by our vehicle fleet maintenance program and through the purchase of new
3. Trucks that have EURO engine specifications to lower smoke emission levels.
4. Use of battery operated handling equipment and gas powered forklifts to reduce noise and pollution.
5. Use of LED lightings thereby reducing heat and chemical emission.
6. Use or purchase of office equipment with energy saving features.
7. Maintaining only minimum lightings and air conditionings during lunch hour.
8. Plan journeys effectively and encourage drivers to drive safely and efficiently to reduce fuel costs and
improve the environmental and safety performance.
9. New warehouses designs to take maximum advantage of natural lighting.
10. Existing warehouses gradually switching from halogen high bay lights to LED high bay lights.
11. Assess the water effluent discharged that flows from the premises directly into the main sewer network.
12. Assess the noise levels around the logistics center as a requirement of an ISO 14001 Environmental
Management System.
13. Rainwater harvesting and intelligent condenser water treatment.
14. Use of anhydrous ammonia refrigeration system plant room.
15. Use R-404A HFC blend truck refrigeration system

ENVIRONMENTAL MONITORING

a) The objective of environmental monitoring

is to manage and minimize the impact of
an organization’s activities have on the
environment, either to ensure compliance with
laws and regulations or to mitigate risks of
harmful effects on the natural environment and
protect the health of human beings.

b) The Group has conducted two types of

monitoring which are Environmental Noise
Monitoring and Waste Water Quality Monitoring.
The monitoring has been set to be conducted
every three years or if there is any changes on
the environment requirement or guidelines.

c) This monitoring has been performed by the

accredited laboratory with ‘Skim Akreditasi
Makmal Malaysia (SAMM)’ number registered.

ENVIRONMENTAL NOISE MONITORING

a) Environmental noise pollution is define as any unwanted sound and it embraces noise from industrial
sources, transportation as well as from domestic premises. Environmental noise pollution can cause public
annoyance and hearing impairment may result from high noise levels.

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b) The noise cannot exceed the limit of 75.0 dB as per stated on the guidelines by Receiving Land Use for
Existing Built-Up Areas, 2nd Schedule; Schedule of Permissible Sound Levels; Guidelines for Environmental
Noise Limit & Control, 3rd Edition, 2019, Department of Environment.

c) The sample of noise level were taken from several location in our Cold Chain facilities as below:

Result Guideline Compliance

Point Picture
dB(A) dB(A) (Yes/No)
N1 63.8 75.0 Yes
(Front of warehouse) 55.9

N2 67.4 75.0 Yes

(Rear of warehouse) 66.3

N3 70.7 75.0 Yes

(Middle of warehouse) 67.3

N4 68.7 75.0 Yes

(Rear of warehouse) 63.1

N5 70.2 75.0 Yes

(Middle of warehouse) 66.6

N6 70.5 75.0 Yes

(Front of warehouse) 66.5

N7 65.0 75.0 Yes

(Near Guard House) 63.2

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d) Our Group has been complied with the regulation as the result is less than 75.0 dB.

1.1 WASTE WATER QUALITY MONITORING

a) The objective of water quality monitoring is to obtain quantitative information on the Physical
Characteristics (e.g., temperature, colour, light, sediment suspended in the water); Chemical
Characteristics (e.g., dissolved oxygen, acidity (pH), salinity, nutrients and other contaminants); and
Biological Characteristics (e.g., bacteria and algae).

b) The result has to comply with standard or guideline by Environmental Quality (Industrial Effluents)
Regulations 2009 Fifth Schedule, Parameter Limits of Effluents (Standard B).

c) The sample of water monitoring were taken from several location in our Cold Chain facilities as below:

Location Location Location Location

Plant room Gate 1 Gate 3 Gate 4

Location Location Location

Truck washing Gate 2 Canteen Drain
area (Additional Point) (Additional Point)

d) Since the result showed non-detection on any physical, chemical and biological that affected to our
Cold Chain facilities water compound, Our Group has deemed complied with the regulation.

ENVIRONMENTAL PRACTICE

Electricity and Water Consumption Monitoring

a) Our Group has been practicing energy saving by creating awareness to all employees to save electricity and
water consumption.

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b) We also practice rainwater harvesting for our cooling system and chiller system, which is reused for air
conditioning system to the offices.

Refrigeration System

a) For refrigeration system, the resources or gaseous that reduces the impact to the environment were used,
taking into account potential of ozone depletion and global warming concern.

b) Due to that, the comparison of gas component of each refrigerant were carried out as a guideline to use the
better refrigeration system in future to ensure the environmental protection is in order.

c) For plant room, the Anhydrous Ammonia or Ammonia gas has been used to operate the cooling system for
warehouse as the characteristics below:-

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Truck Refrigeration System

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Truck Diesel

Our transition into waste and pollution management

A waste quality survey has been conducted on 16th and 18th November 2020 at five selected locations for our
Cold Chain facilities located No.3 Jalan Sungai Kayu Ara 32/40, Seksyen 32, Taman Berjaya Park, 40460 Shah
Alam Selangor .

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Solar System

The decision to install solar system at our Cold Chain facilities has been made in year 2020 to reduce the
electricity consumption in our Cold Chain facilities. The Group has invested in a solar system with capacity of
1,800 KWp in a Cold Chain facilities located at Berjaya Industries Logistics Centre. The installation of this solar
system is expected to complete by Septembar 2022.

Expected return from solar energy.

Per Year Energy Consumption

Total kwh usage 16 million RM 7.7 million
Guarantee Period Year 1 2.5 million RM 1.2 million
Guarantee Period Year 2 2.4 million RM 1.15 million
Guarantee Period Year 3 2.35 million RM 1.14 million

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Quality

The Group committed in delivering high quality and effective services that contributes to a better future for
diversified needs and demands of our customers and society. This commitment driven by our corporate mission
to become the world’s preferred supply chain logistics company, and by our values and behaviors under
management initiatives.

Certification and Appreciation Awards

In order to provide and maintain quality of service to our customers, the Group is fully committed in maintaining
the following certified standards:-
i. Major branches:- Shah Alam Logistics Centre, KLIA Air Logistics Centre, Port Klang Logistics Centre l,
Penang Air Logistics Centre, Penang Prai Logistics Centre and Berjaya Industrial Logistics Centre were
accredited ISO 9001:2015.
ii. Berjaya Industrial Logistics Centre was accredited ISO 14001:2015 and Food Safety System Certification
ISO 22000.
iii. West Port Logistics Centre was accredited Food Safety Management System ISO 22000.
iv. KLIA Air Logistics Centre is certified TAPA FSR (Facility Security Requirements) by the Transported Asset
Protection Association (“TAPA”).
v. Batu Maung Warehouse is certified TAPA FSR (Facility Security Requirements) by the Transported Asset
Protection Association (“TAPA”).
vi. Transportation & Warehousing for Penang Prai Logistics Centre, Berjaya Industrial Logistics Centre and
West Port Logistics Centre was certified HALAL by Department of Islamic Development Malaysia (JAKIM)
– has complied with Islamic Law & Malaysia Halal Standard for.
vii. Shah Alam Logistics Centre and Port Klang Logistics Centre l were awarded with Good Distribution Practice
in Medical Device (GDPMD) by TUV Nord Malaysia for two warehouses.
viii. Berjaya Industrial Logistics Centre was awarded with Good Distribution Practice by AGM Certification Sdn
Bhd.

SOCIAL

TASCO’s ambition is to ensure that we provide an engaging, safe and inclusive place to work, where we take
action to secure that all workers have decent working conditions and that we continue to improve the working
environment for all our employees.

Health, Safety and Security

Keeping our employees safe from harm means that we must work to eliminate fatalities and life-altering injuries
and strive for as few lost time injuries as possible associated with our operations.

Maintenance of a safe and healthy working environment is one of the priorities for the Group. Our Group is
engaged in keeping the working environment comfortable for workers by actively conducting measures that
maintain and promote the sound physical and mental health of workers.

The Group had established a Health & Safety Committee to formulate policies, action plans, and budgets for the
implementation of road and work place safety program. The Group is committed to Safety, Health and Environment
excellence to all employees, customers, contractors and public in all its business activities wherever it operates.

Leading the drive to improve safety

Reaching these targets requires us to invest and commit resources to building leadership capabilities and
improving our safety culture.

Gone through comprehensive training in the TASCO Safety and Security Principles that form the core of our
approach to safety and security, enabling leaders to champion and effectively take on the critical responsibility to
ensure that we are doing everything we can to make safe work easier.

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Safety & Health Policies

• Take appropriate practicable measures to prevent and eliminate the risk of injuries, occupational illness and
damage to properties.
• Take proactive steps towards conservation of the environment.
• Ensure commitments from all employees and all levels of management.
• Provide the necessary resources and organization, and where appropriate, engage with key stakeholders
on relevant Safety, Health and Environment matters.
• Ensure that appropriate contingency measures are in place to deal with emergencies.
• Furnish necessary information, training and support and provide a healthy and safe working environment.
• Comply with relevant Safety, Health and Environment legislations and others requirements.

During the financial year under review, regular safety meetings was held by the Safety Committee to tackle
material safety issues at work place and audits were conducted to ensure that safety policies and guidelines were
being followed. On 27 September 2021, our Head Quarter launched a Safety Champaign with the title – “Safety
First; Utamakan Keselamatan”. A series of safety trainings program were conducted at branches and warehouses
aimed to create awareness and to promote safety among the employees and the customers. For the financial
year under review, our Company had put on additional focus on safety in warehouse and transport operations.

Health and Safety Committee

TASCO Safety & Health Committee Chart 2022

National
Chairman KHAIRIL IDZWAN

Secretary
MOHD SHAHAR

Shah Alam
Logistics
Centre-HQ

Senai Tanjung
Penang Air Penang Prai Ipoh Bangi Shah Alam KLIA Airport Port Klang West Port Melaka
Seelong Pelepas
Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics Logistics
Logistics Logistics
Centre Centre Centre Centre 2 Centre2 Centre Centre Centre Centre
Centre Centre

Bangi KLIA North Port

Container Distribution Logistics
Depot Centre Centre

Port Klang
Container
Depot

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The following includes some of the activities that have been carried out during the financial year:

a) Occupational Safety and Health

During the financial year, safety and health trainings were attended by our staffs to update their knowledge
and improve their skills. The trainings attended are as follows:-

Type of Training Month & Year No. of Employee Training Hours

Dangerous Goods Regulations – Refresher June 2021 1 16
August 2021 1 16
October 2021 1 16
IATA Dangerous Goods Regulations Course December 2021 2 40
- Initial January 2022 1 40

The firefighting systems and back-up generators of our major warehouses were inspected periodically by
external fire contractors to ensure that they are in good operational condition. The hazardous areas in our
major warehouses and offices were identified, updated, mapped and displayed in the buildings.

b) Driver Defensive & Safety Training

Defensive driving is essentially driving in a manner that utilises safe driving strategies to enables drivers to
address identified hazards in a predictable manner. Trainings assist in improving drivers’ driving skills by
reducing their driving risks by anticipating situations, making safe well-informed decisions and also gained
knowledge on fuel efficient driving techniques. Attendance of our drivers for the defensive driving and other
related trainings are as follows:-

Type of Training Month & Year No. of Employee Training Hours

Hamzat Transport Driver Permit (HTDP) Course July 2021 1 8
Lorry Driver Defensive & Safety Training
- Bangi October 2021 18 8
- Shah Alam November 2021 16 8
- Northern November 2021 22 8
- Ipoh December 2021 12 8
Driver Defensive, Safety & Eco Training January 2022 15 8
March 2022 22 8
HINO Driver Familiarization Training February 2022 11 16
March 2022 10 16
Actross Mercedez Training (Northern) March 2022 21 8

c) Certification of Forklift Operators

A forklift is a powerful tool that allows the movement and storage of product and materials efficiently and
safely, provided if the employer provides the correct equipment and properly trains its operators. Each year
forklift accidents result in the loss of life, significant personal injuries and damages to products and property.
Most forklift accidents are the result of driver error. Therefore management has emphasized that all forklift
driver must be trained and certified. During the financial year under review, the trainings attended are as
follows:

Type of Training Month & Year No. of Employee Training Hours

Forklift Training and New Certification Licensing
- Northern November 2021 10 8
- Shah Alam November 2021 12 8
Latihan Pengendalian dan Keselamatan January 2022 26 8
Jenangkut (Forklift) February 2022 12 8

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Report of Hazard Identification, Risk Assessment and Risk control (HIRARC) Road Traffic Management
in TASCO Berhad

Safety hazards are unsafe working conditions that leads to injury, illness, and the possibility of death. Safety
hazards are the most common workplace risks. Because of that, our country has self-regulations towards regulating
the Occupational Safety and Health (OSH) in the workplace namely Occupational Safety and Health Act 1994.
According to Occupational Safety and Health Act 1994 section 15(1), it is the duty of the employer to ensure the
workers are safe from any risk at the workplace. According to Occupational Safety and Health Act 1994 section
24(1), it is also the duty of the employee to take reasonable care for their own safety and strictly adhere with the
safety guidelines set out by the employer. Accidents, ill health and incidents are seldom and random inevitable
events. These generally can happened from failures in control of safety and often have multiple causes. All
activities involve a measurable risk. Therefore, the application of an effective management system can lead to
safer working environment and reduce the incidence of injury and work-related diseases. Identifying hazard and
assessing risks are important to reduce the probability of accidents. It is important to identify the possibilities of
potential hazards at the work place, and to take precautionary measurements to reduce the chances of accidents.
Many hazards in the workplace require immediate attention. Hazard Identification, Risk Assessment and Risk
control (HIRARC) is a compound word that made up of three consecutive activities running one after the other.

Hazard identification is the recognition of things that may cause injury or harm to a person. Risk assessment
is looking at the possibility of injury or harm occurring to a person if exposed to a hazard. The introduction of
measures that will eliminate or reduce the risk of a person being exposed to a hazard is known as Risk control.
Hazard Identification, Risk Assessment and Risk control (HIRARC) are important to protect the workers.

Its purpose is to identify all the factors that may cause harm to employees and others, to consider what the
chances are of that harm actually be falling anyone in the circumstances of a particular case and the possible
severity that could come from it and to enable employers to plan, introduce and monitor preventive measures to
ensure that the risks are adequately controlled at all times (DOSH,2008, p.6).

Objectives

General Objective
• To identify safety hazard at the workplace and provide a measure to control the risks.

Specific Objective
• To identify types of a safety hazard that may cause harm to people around the area at the workplace.
• To conduct risk assessments by calculating or estimating likelihood of occurrence and severity of the hazard.
• To suggest, implement and review the risk control in order to control the potential risk in the workplace.

Method of Risk Assessment

Risk assessment is a concept used to identify hazards and risk factors that can cause danger, to evaluate and
determine the risk associated with the hazard and identify effective ways to remove the hazard or monitor the
hazard when the hazard cannot be removed. Risk can be calculated by the equation Risk = Likelihood x Severity
(DOSH, 2008, p. 5). There are two methods of risk assessment, which are risk estimation and risk evaluation.

Risk Estimation

Risk estimation is the process used to produce a measure of the level of risk being analyzed. The table below
shows the likelihood of the risk by referring to the value.

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The table below shows the likelihood of the risk by referring to the value.

Likelihood of the risk (L) Example Value

Very high Hazard or accident that are most likely to happen 5
High The accident can happen 4
Can be predicted The accident might happen in the future 3
Low There is no accident happen 2
Very low There is no accident happen and it is impossible for accident to occur 1
Table 1: Examples and rating for likelihood

Risk Evaluation

Risk Evaluation is the process used to compare the estimated risk against the given risk criteria to determine the
significance of the risk. Risk evaluation use to assist in the decision to risk treatment. Risk Evaluation as part of
the ISO31000 Risk Management Framework. The table below shows the severity of hazard by referring to the
value.

Severity of the hazard (S) Example Value

Severity Many deaths, damage to property, damage cannot be fixed 5
Catastrophic Approximately one death, damage to property If hazard occur. 4
Critical Accident is not fatal, losing ability to move like normal human 3
Marginal Accident cause loss of ability but not a permanent injury. 2
Negligible A bit of blistered, bruises cuts, and injury that need first aid 1
Table 2: Examples and rating for severity

The risk rated by using the risk matrix table

Severity
Likelihood 1 2 3 4 5
5 5 10 15 20 25
4 4 8 12 16 20
3 3 6 9 12 15
2 2 4 6 8 10
1 1 2 3 4 5
Table 3: Risk matrix table

Indicators Actions
Requires immediate action to control the hazard using hierarchy of control. Actions taken
HIGH (15-25)
must be documented (risk assessment form), including date for completion
Requires a proper risk control plan to control the hazard and to apply temporary measures
MEDIUM (5-14) if required. Actions taken must be documented (risk assessment form), including date for
completion
Further reduction may not be necessary. However, if the risk can be resolved quickly and
LOW (1-4)
efficiently, control measures should be implemented and recorded
Table 4: Risk assessment indicator and suggested actions

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Result

Table 5: Summary of Hazard, Risk Rating and Risk control

Activity/ Process/ Current Risk Risk Rating
No Hazards Effects Risk Control
Facilities/ Equipment Control S L R
1. Workers/Visitor Overtake vehicle Can lead to traffic Put the hump to slow 4 4 16 Put the speed bump
to avoid the speed accidents result down the vehicle full at the place
bump in injury, death,
vehicle damage and
possession damage.
2. Workers/visitor Drive vehicle at the Can lead to traffic Enforcing rules that 3 4 12 Put the speed
high speed Infront the accidents result prohibit speeding breaker which is
lobby in injury, death, speed bump at the
vehicle damage and front lobby
possession damage.
3. Workers/visitor Drive vehicle does Can cause accident 3 3 9 Put signage of speed
not see clearly of result in injury and bump to inform the
speed bump on the vehicle damage. worker/visitors
road
4. Workers/visitor Difficult road Can cause accident Enforcing rules that 3 3 9 Repair the road by
condition result in injury and prohibit speeding pave the road
(Road damage and vehicle damage.
potholes lane road)
5. Workers/visitor Blindspot area which Can cause accident Install convex mirror 3 3 9 Repair or install new
the convex mirror is result in injury and convex mirror
not clearly seen vehicle damage.
6. Workers/visitor At night the wall metal Can cause accident Reflector light 3 2 6 Put reflector light or
cladding construction result in injury and reflector stripe on all
is not clearly seen vehicle damage. wall metal cladding
construction

DISCUSSION AND RECOMMENDATION

1. Overtake vehicle to avoid the speed bump 2. Drive vehicle at high speed in front of the lobby

In accordance to Table 5, the risk rating for this hazard According to table 5, the risk rating for this hazard is
is high, which is 16. To maintain the vehicle in motion, 12, which is considerably high. From the observation,
motorist tends to avoid the speed bum. This can be worker or visitor tends to drive pass the lobby at high
dangerous if they try overtaking the vehicle in front by speed. This is dangerous as it is also the walking area
avoiding this speed bump. Further to that, as vehicles for visitor or worker to enter the office. If the driver
are parked by the side, it can be more dangerous tends to accelerate at this area, the possibility of a
when attempt to overtake the car in front. Accident collusion with the worker/visitor is high. To avoid this
can happen when the vehicle in motion hits the car hazard, the team suggests adding a speed bump in
parked by the side and can cause damage to both front of the lobby as it can reduce the speed of the
vehicles. From the observation, to avoid this hazard vehicle passing through the lobby.
from happening, the speed bump needs to extend
to cover that area in full. This can prevent worker or
visitor to overtake the vehicle in front.

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3. The speed bump on the road is not visible on 5. Blindspot area whereby the convex mirror is
the road not clearly seen

In accordance to the result in table 5, the risk Other than that, from the table 5 above, the risk rating
rating for this hazard is 9 which is alarming. From for this hazard is 9 which is alarming. This is because
the observation, the speed bump is not too visible, in this area, the convex mirror is not visible. Accident
especially at low light situation. The worker or visitor can happen as this is a blind spot area. This causes
who drive along this road hardly notice the speed misjudgment when motorist exiting the parking lot. To
bump. Motorist tends to drive faster on this straight avoid this hazard from happening, suggestion from
road when they did not notice the speed bump. Due to the team is to repair or install a new convex mirror so
this, suggestion from the team is to put up a signage that the worker/visitor can see clearly.
before the speed bump to alert the driver.

4. Difficult road condition (Road damage and 6. The wall metal cladding construction is not
potholes lane road) visible at night

Based on table 5, the risk rating for this hazard is 9 Lastly, according to table 5, the risk rating for this
which it is alarming. Accidents or vehicle damage can hazard is 6 which is normal. This is because, under
happen. This can be explained more as when worker low light situation, the vision of the worker is limited.
or visitor, especially motorcycle, drive onto the pothole, Worker driving at night around this construction site
resulting in injury or damage to their vehicle. The risk might not see the metal wall cladding clearly. To
increases at night or when the pothole is covered with avoid this hazard, the team suggests to put lighting or
water/flooded. Because of that, the team suggests to reflector stripe at all metal wall cladding so that worker
repair the road damage and the pothole by paving this driving around that area is safe from hitting the metal
road. This can ensure the safety of the worker/visitor wall cladding.
who drive along this road

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Labor Standard

All policies and practices within the Group aligned with the Employment Act 1955 and regulatory guidelines.
Work-life balance improved via comprehensive schedules that enable the operational department to obviate
excessive working hours that might affect the employee’s health, family time, and productivity.

Employment Policy (Children and Young People)

There is no children and young people hiring in the Group. We adopt a policy that complies with the Children and
Young Persons (Employment) Act 1966 and any other relevant laws. The minimum age for employment in our
Group is 18 years of age.

Grievance Procedure

Grievance procedures is in place whereby any dissatisfaction or complaint can brought to the attention of the
immediate superior. The grievance procedures enable grievances to be resolved on a timely manner and ensure
that a harmonious work environment is maintain. Alternatively, employees are also encouraged to raise concerns
or make a complaint directly to the Human Resource department.

Incidents of Human Rights Violations

There were no reported human rights violation or incident happened in the Group. We strictly adhere to our
human rights policy and act in accordance to the UN International Covenants and local human rights law.

Participation on Human Rights Initiative

The Group has been actively engaging with the government authorities, such as Jabatan Tenaga Kerja (JTK) and
Jabatan Kesihatan dan Keselamatan Pekerja. We strictly comply with the rules and regulation of local authorities
on human rights including foreign workers issues, accommodations and welfare.

Employee Engagement on Charitable Activities

Contribution to the community

As part of our contribution to the community, the Group encouraged the participation of our employees from
various path in life without prejudice and we oppose to any discriminatory hiring policy.

We are committed to employ locally which would contribute to the economy sustainability and foster talent
development within the country.

Donation
As part of the corporate social responsibility, we have an annual collection among our staff to donate to homes or
centers in need during the fasting month. Our Company also contributed to the collection fund. For the financial
year, RM3,000 has been donated to Hospital Tunku Azizah.

In December 2021, several states in Malaysia were badly affected by the flash flood after a downpours throughout
the peninsula. The Group has donated RM120,000 to employees who were suffered from the flood.

Human Capital

A key priority in our ESG strategy is to create an engaging environment for the employees. People are the
foundation of company’s success. We are committed to foster talent development via capitalising on the strengths
and abilities of employees, help them to become stronger and grow within the group.

Training and Development

Recognising that human resources is an important asset and in line with our quality policy which include
development of all our employees and maximise their potential to the greatest extend so that they may benefit by
growing with the Group yearly training needs analysis covering all levels of employee has been carried out and
appropriate training programme provided on a continuous basis to increase their skills and knowledge.
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During the financial year, the following training courses were attended by our employees:

Type of Training Month & Year No. of Employee Training Hours

Compliance Awareness Briefing (Anti-Trust & Anti
Bribery)
Session A April 2021 109 2
Session B April 2021 60 2
Session C April 2021 32 2
Email Etiquette Training
- Northern May 2021 13 8
- Shah Alam January 2022 13 8
Customer Service Training August 2021 10 12
Project D : Development Training August 2021 12 8
August 2021 18 2
September 2021 12 2
September 2021 25 2
Power BI Desktop Training (Intermediate) October 2021 10 8
Power BI Desktop Training (Advance) November 2021 10 16
Webinar Series : ESG and Sustainability December 2021 2 4
Reporting
Seminar on Custom Procedure December 2021 4 8
Refreshment on Custom Declaration Form January 2022 14 8
Food Handler Training January 2022 5 4
Basic Cargo Skills Course
First Session January 2022 22 24
Second Session January 2022 19 24
Do It Right First Time (DRIFT) Training January 2022 9 8
Effective Leadership Communication Training January 2022 10 16
Time Management Training March 2022 11 8

Human Rights Policies

The Group respects international norms on human rights and will not engage in acts that violate human rights and
the dignity of the private individual in any of our business activities and we also respect the rights of all persons
and will not engage in discrimination action or make discriminatory remarks based on gender, age, nationality,
ethnicity, creed, religion, occupation, social status, appearance, illness or disability which accordance to the
United Nation

Conventions of Human Rights and Child Protection

We will not engage in libelous or slanderous acts that violate human dignity, abusive acts that may be regarded
as harassment or any other act that may be misinterpreted as harassment, without any exception.

We will pay due attention to the social responsibility of business corporations and will not allow forced labor or
child labor nor conduct trade with other business enterprises engaged in such acts.

We will observe labor contracts and other agreements with attention to the protection of the rights of workers
established in international treaties and in laws and regulations of each country or region.

Right to Freedom of Association

We encourage right of freedom of association as long it is in accordance to Malaysian by-law.

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 ANNUAL REPORT 2022

SUSTAINABILITY STATEMENT

Diversity, Equity and Inclusion

TASCO remains driven by our Core Values and the need to attract and retain talented employees. For these
reasons, we have made the DEI a special priority in our ESG strategy. In addition, employees increasingly hold
us accountable for our actions and policies to protect and further the rights of vulnerable groups that experience
discrimination in society. More recently, customers, investors and benchmarking agencies have also turned their
attention to how we implement DEI.

LISTENING TO EMPLOYEES

Grievance Procedure

We have grievance procedures in place whereby any dissatisfaction or complaint by an employee can be brought
to the attention of the immediate superior. The grievance procedures enable grievances to be resolved on a
timely manner and ensure that a harmonious work environment is maintained. Alternatively, all employees have
the right to raise concerns or make a complaint directly to the Human Resource department of our Group.

Whistle-Blowing Procedure

We have whistle-blowing procedures in place whereby any dissatisfaction or complaint by an employee can be
brought to the attention of the our Compliance Officer.

Staffs are encouraged to report any non-compliance issues, business fraud or business irregularities to the
Management, either by sending an e-mail or directly contact the Compliance Hotline. The company established
the whistle blowing process, that acts as deterrent to malpractice, encourages openness, promotes transparency,
underpins the risks management systems of the company and helps protect the reputation of the company and
senior managements.

All employees are encourage to speak out should they have concerns or complaints regarding company
accounting, internal accounting controls, including those that could harm the reputation and/ or financial standing
of the company, any serious unethical, illegal action, violation of rules and regulations or other concerns relating
to the company.

All channels of whistle blowing will be in charged by Compliance Office and all acknowledgement of receipt of
the report will be made to the complainant within 48 hours (with the exception of the anonymous complaints).
The investigations of most complaints will be handled internally and will typically be carried out by Compliance
Officer or his designated body. On case by case basis, it may be determined that outside resources are required
to assist in such investigation.

Confidentiality

It is essential that you feel secure when participating in the Company’s compliance system. Therefore, confidentiality
is a priority and every effort will be made to protect your identity whenever you interact with any element of the
compliance system. In some instances, however, it may be impossible to keep your identity confidential because
of the demands of conducting a thorough investigation or because of certain legal requirements. If you are
concerned about confidentiality, you may consider placing an anonymous call to the TASCO Compliance Hotline.

Compliance Hotline

The Compliance Hotline is available within office working hours (Monday to Friday, excluding public holiday,
8.30am to 6.00pm)

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 ANNUAL REPORT 2022

SUSTAINABILITY STATEMENT

Fair and Equal Wage

Our values and commitments to international labour standards obligate us to pay fair and equal wages to all
employees as we remunerate our employees in accordance with the provisions of the Malaysian Employment Act
1955 (“Employment Act”), including complying with the statutory minimum wage.

Employees will be paid higher than the minimum wage in accordance with their experience, skills and performance
and working attitude.

Involvement in Labor Standard Initiatives

We initiated a discussion with Ministry of Transport (Malaysia) on shortage of foreign man-power due to Covid-19.

Incidents of Labor Standard Violations

There is no reported instance on any labor standard violations or incident happened in our group. We take these
matters seriously as stated in our labor rights policy and according the UN International Covenants and local
human rights law

COMMUNITY

Internship Program

The Group continuously accepts students from higher institutes of education into our internship training programme
as part of our commitment to the community. The objective of our internship programme is to provide students
with exposure to real work experiences that will provide them with opportunities to explore their interests and
develop professional skills and competencies.

During the financial year, the Group has taken in students into its internship programme from Tunku Abdul
Rahman University College, Universiti Teknologi Mara, Universiti Utara Malaysia, Malaysia University of Science
and Technology, Politeknik Metro, Politeknik Merlimau, Politeknik Seberang Prai, Universiti Malaysia Kelantan,
Taylor’s University, Universiti Tenaga Nasional, Unitar International University, Kolej Komunity Sepang, and
PICOMS.

The Group accepted 38 students from various institutes of higher education into its internship programme in
previous financial year. Whereas for the financial year under review, the group accepted 26 students into its
internship programme.

TALENT RECRUITMENT AND RETENTION

Human Resource Status

TASCO adheres to the principles of fairness and diversified employment. In terms of recruitment, employment,
evaluation, and promotion, employees of different age, gender, race, religion, political views, marital status,and
backgrounds are treated fairly and equally, where the only considerations are finding the appropriate candidate
for the appropriate position, and creating fair and diverse employment opportunities for all operation sites to
promote local economic growth. In 2019, the total number of employees of TASCO 1,462, while in 2020 the
total number of employees 1,436 and followed by 2021 our total number of employees 1,527. As Total Logistics
and Warehouse Company is semi-automated, some processes still rely on manual and labor-intensive work,
and workers in some operations exposed to chemicals. Addition it also due to the nature of the job description
such as truck drivers and MHE operator. Therefore, the proportion of male employees is higher than that of
female employees. As part of our value in fairness in employment, TASCO also have one (1) disabled employee.
Additionally, sub-contractor employees divided into local and foreign employees. Inside TASCO facilities, the
foreign workers mostly are from Nepal.

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 ANNUAL REPORT 2022

SUSTAINABILITY STATEMENT

Staff Turnover

Yearly Percentage of Resignation By Own Accord

April 2020 - March 2021

Employment Status Count of EmpNo
RESIGNED 139 %
Grand Total 139 9.7

April 2021 - March 2022

Employment Status Count of EmpNo
RESIGNED 190 %
Grand Total 190 12.4

Staff by gender

April 2019 - March 2020

Count of Employee Employee Type
Gender CONTRACT PERMANENT Grand Total %
FEMALE 34 416 450 30.8
MALE 487 525 1012 69.2
Grand Total 521 941 1462 100

April 2020 - March 2021

Count of Employee Employee Type
Gender CONTRACT PERMANENT Grand Total %
FEMALE 25 424 449 31.3
MALE 461 526 987 68.7
Grand Total 486 950 1436 100

April 2021 - March 2022

Count of Employee Employee Type
Gender CONTRACT PERMANENT Grand Total %
FEMALE 6 453 459 30.1
MALE 465 603 1068 69.9
Grand Total 471 1056 1527 100

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 ANNUAL REPORT 2022

SUSTAINABILITY STATEMENT

Sub-Contractor Worker

Yearly Percentage of Sub-Contractor Workers

April 2019 - March 2021

Employment Status Count of EmpNo %
SUBCON-FOREIGN 532
SUBCON-LOCAL 179 32.7
Grand Total 711

April 2020 - March 2021

Employment Status Count of EmpNo %
SUBCON-FOREIGN 482
SUBCON-LOCAL 171 31.3
Grand Total 653

April 2021 - March 2022

Employment Status Count of EmpNo %
SUBCON-FOREIGN 454
SUBCON-LOCAL 213 30.2
Grand Total 667

Summary of staff those absorb after completion internship (2016 - 2021)

Row Labels Count of NAME

HQ (SHAH ALAM) 10
PA (PAPAMY INPLANT) 1
PK (PORT KLANG) 1
PN (PENANG PRAI) 6
S2 (SHAH ALAM 2) 1
SA (SHAH ALAM WAREHOUSE) 16
TP (TANJUNG PELEPAS) 2
WP (WEST PORT) 1
YK (KLIA) 2
YP (BAYAN LEPAS) 2
Grand Total 42

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 ANNUAL REPORT 2022

SUSTAINABILITY STATEMENT

Amount of time spent on employee development training to enhance knowledge or individual skills:

Below is the general trainings that have added in training hours.

Type of Training Month & Year No. of Employee Training Hours

Compliance Awareness Briefing (Anti-Trust & Anti
Bribery)
Session A April 2021 109 2
Session B April 2021 60 2
Session C April 2021 32 2
Email Etiquette Training
- Northern May 2021 13 8
- Shah Alam January 2022 13 8
Customer Service Training August 2021 10 12
Project D : Development Training August 2021 12 8
August 2021 18 2
September 2021 12 2
September 2021 25 2
Power BI Desktop Training (Intermediate) October 2021 10 8
Power BI Desktop Training (Advance) November 2021 10 16
Webinar Series : ESG and Sustainability December 2021 2 4
Reporting
Seminar on Custom Procedure December 2021 4 8
Refreshment on Custom Declaration Form January 2022 14 8
Food Handler Training January 2022 5 4
Basic Cargo Skills Course
First Session January 2022 22 24
Second Session January 2022 19 24
Do It Right First Time (DRIFT) Training January 2022 9 8
Effective Leadership Communication Training January 2022 10 16
Time Management Training March 2022 11 8

Training for warehouse employee

Type of Training Month & Year No. of Employee Training Hours

Dangerous Goods Regulations – Refresher June 2021 1 16
August 2021 1 16
October 2021 1 16
IATA Dangerous Goods Regulations Course - December 2021 2 40
Initial January 2022 1 40

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 ANNUAL REPORT 2022

SUSTAINABILITY STATEMENT

Training for drivers

Type of Training Month & Year No. of Employee Training Hours

Hamzat Transport Driver Permit (HTDP) Course July 2021 1 8
Lorry Driver Defensive & Safety Training
- Bangi October 2021 18 8
- Shah Alam November 2021 16 8
- Northern November 2021 22 8
- Ipoh December 2021 12 8
Driver Defensive, Safety & Eco Training January 2022 15 8
March 2022 22 8
HINO Driver Familiarization Training February 2022 11 16
March 2022 10 16
Actross Mercedez Training (Northern) March 2022 21 8

Training for warehouse general workers

Type of Training Month & Year No. of Employee Training Hours

Forklift Training and New Certification Licensing
- Northern November 2021 10 8
- Shah Alam November 2021 12 8
Latihan Pengendalian dan Keselamatan January 2022 26 8
Jenangkut (Forklift) February 2022 12 8

634 employee involved in our training for the financial year under review and total number of training hours were
432 hours. Each employee manage to have at least 0.68 hours training.

Our Response to Covid-19 Epidemic Phase

The wellbeing of the employees, business partners and communities remained the top priority to us. The
Committees work tirelessly in ensuring all the employees adapt to the new normal and follows strictly to the SOP
implemented by the authorities from time to time and all other safety and precautionary measures undertaken by
the Group.

The Management reviews the business continuity plans regularly to ensure it adapts to the endemic and also
requesting the operation teams and branches to response rapidly to meet the recommendations of government
authorities and at the same time support those affected as much as possible. The Management has also expanded
information sharing and collaboration across teams and branches to mitigate operations disruption.

As a responsible corporate citizen and in order to protect workplace safety and business continuity, our Company
has determined that it is mandatory for all employees (except those with valid reasons) to be vaccinated against
COVID-19. This is important as our company takes all necessary steps to ensure all employees’ health and well-
being. Vaccination is the primary way to put the pandemic behind us and to ensure our business continuity.

Governance

TASCO as a public listed company listed at the Main Market of Bursa Malaysia Securities Berhad, apart from
the Listing Requirements of Bursa Malaysia, Malaysian Code on Corporate Governance 2017, the Companies
Act 2016 and other rules and regulations from Malaysia regulatory bodies, the Group has set forth the Code of
Conduct for all directors and employees belonging to the Group to observe and refer to for proper and ethical
behaviour.

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 ANNUAL REPORT 2022

SUSTAINABILITY STATEMENT

Our employee Code of Conduct clearly mandates compliance with various international laws governing our
business and also mandates that we do not use corrupt or prohibited methods, such as entertainment and gifts to
public officials domestically or internationally, and the Group’s strong practice is to vigorously enforce that policy.
To ensure our employees are aware of the Code of Conduct, our Group organises trainings on a periodic basis

Full Compliance with the Antitrust Law

We commit to comply with the Competition Act 2010 of Malaysia, and any other laws and regulations to maintain
fair trade and competition in all countries where the Group operates. We will not engage in cartel behaviour, acts
that impede free and fair competition nor any other act that may invite suspicious of such behaviour. We assure
that we do not promote nor participate in any meetings to discuss matters that could lead to the restriction of fair
competition in the market.

Upon dealing with business partners, we assure that we will not use our dominant bargaining position to delay or
refuse payments, unjustly return or refuse acceptance of products or services of subcontractors.

Training for employee on the anti-corruption policy conducted on 150 employees. It covers the elements of
corruption which include bribery. The training was conducted based on yearly basis by TASCO covers all aspect
of corruption from individual into responsibility towards company and obeying the prohibition of corruption. Inside
the training, TASCO provide the material notes and quiz test through e-learning which relates to the training
material. It involves all level of employees of TASCO.

There is no reported instance on any anti-trust law violations or incident happened in our group.

Business Ethics

We blend the principles on business and human rights; to protect, to respect and access to remedy as fundamental
in our business ethics which in line with the United Nations guidelines. A broad perspective on business ethics,
looking at both responsibility, opportunity and risk related to our goal of promoting sustainable trade and a better
society.

To mitigate key risks, we focus on all compliance topics including anti-corruption and sanctions as well as data
ethics

Prohibition of Bribery

The Group requires that our employees and our authorised agents who carry out our operations and our business
partners observe the Malaysian Anti-Corruption Commission Act, the US Foreign Corrupt Practice Act, the UK
Bribery Act, the Chinese Criminal Law and Anti-Injustice Law, Japan Unfair Competition Prevention Law and any
other law which prohibits corrupt practices and bribery.

Domestically or internationally, against any public or private individuals, direct or indirectly, we will not provide,
offer or promise to pay, nor will we accept, request or agree to receive any sort of bribe or similar transaction in
order to gain unlawful benefit.

There is no reported instance on any anti-corruption law violations or incident happened in our group.

Gift-Giving and Entertainment

The Group will not engage in gift-giving and business entertainment exceeding the norms of social etiquette in
our relationship with our customers and business partners. Also, we shall not accept gifts, entertainment and etc,
that may lead to personal gain.

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SUSTAINABILITY STATEMENT

Prohibiting Conflict of Interest

Except with the approval of the Company, individuals belonging to the Group will not serve as director, advisor,
employee, agent, etc., for other business enterprises or organisations. We engage vendors in trade with
fairness and impartiality and will not compromise the interests of the Company by promoting the interests of one
individual,relatives, friends or acquaintances or designated organisations.

Focus on Third-Party Labour

Supplier Code of Conduct

In recent years, with the global issues such as violation of human rights, bribery, and acts of environmental
destruction having emerged with the globalization of supply chains, it is required to address compliance activities
for not only individual companies but also all associated entities in the supply chains.

For this reason, we expect our suppliers, who is assigned to provide service for our customers on our behalf, to
have a common understanding of business ethics standard. In line with this concept, we would like to request all
suppliers to be committed to practicing the code as set forth below.

1. Services of Outstanding Quality and Safety

Supplier ensures the services of outstanding quality and safety with careful attention to fairness and integrity.

2. Compliance with Laws and International Rules

Supplier is committed to complying with all laws and regulations, both domestically and internationally.
With respect to the business operations, Supplier engages in ethical business practices such as obtaining
permits and approvals required by regulatory requirements.

3. Full Compliance with the Antitrust Law

Supplier is committed to complying with antitrust / anti-competition laws and regulations to maintain fair
trade and competition.

4. Prohibition of Bribery

Supplier is committed to complying with all applicable laws and regulations that prohibit corrupt practices
and bribery. Domestically or internationally, directly or indirectly, against any public or private individual,
Supplier will not give, offer , promise to pay anything of value for the purpose of improperly obtaining or
maintaining business advantage.

5. Prohibiting Conflict of Interest

In order to avoid conflict of interest in the business transaction, if supplier employee has a personal
relationship with any YL Group employee (such as family member, relative, or friend), the supplier must not
take any action that effects YL Group’s purchasing judgement.

6. Respect for Human Rights

(1) Supplier respects international norms on human rights and will not engage in acts that violate human
rights and the dignity of the private individual in any of its business activities.

(2) Supplier respects the rights of all persons and will not engage in discriminatory action based on gender,
age, nationality, ethnicity, creed, religion, occupation, social status, appearance, illness or disability.

(3) Supplier is strongly opposed to all kinds of modern slavery and human trafficking, and shall not engage
in inhumane acts such as forced labor, and child labor. Furthermore, Supplier will not conduct business
with any organization that engages in such inhumane acts.

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 ANNUAL REPORT 2022

SUSTAINABILITY STATEMENT

7. Assuring a Safe and Healthy Work Environment

(1) Supplier is requested to maintain a safe and healthy work environment and will also engage in the
prevention of accidents and occupational injury.

(2) Supplier will strive to keep the work environment comfortable for the workers by actively conducting
measures that maintain and promote the sound physical and mental health of workers.

8. Rejecting Transactions with Antisocial Forces

Supplier will not be involved in terrorism, money laundering or any other form of organized crime and will
furthermore conduct careful study into the processes for transactions to ensure they are not used in such
crimes.

9. Environmental Protection and Compliance

Supplier observe and comply with treaties, laws, regulations, and rules related to environmental protection
and make efforts for environmental preservation.

10. Information Management and Administration

(1) Supplier shall comply with all laws and regulations concerning information security, and implement
strict information management.

(2) Supplier shall pay attention to the handling of personal information and confidential information, and
establish appropriate organizational system to prevent from information leakage. If a confidentiality
agreement is concluded, Supplier will comply with the terms of the agreement.

11. Supply Chain

Supplier encourages its suppliers and subcontractors comply with this Supplier Code of Conduct.

Data Ethics

We recognizes the need for the proper management of personal information as we aim for high ethical standards
in their use, and we handle such information in our possession in accordance with the following principles:

1. Collection of Personal Information

We will collect and process your personal information (regardless of electronic or non-electronic information)
lawfully, fairly and in a transparent manner only to the extent necessary for providing our services or
performing our contractual obligations.

2. Data minimization
We will keep personal information adequate, relevant and limited to what is necessary in relation to the
purpose for which it was provided. We will not collect personal information in advance or store personal
information for future purposes, unless required or permitted by laws or regulations.

3. Intended Use of Personal Information

We will only use the personal information for one or more specified and legitimate purposes. Personal
information will not be used or processed in any manner incompatible with those purposes. When we need
to use your personal information beyond the scope of such purposes, we shall obtain your consent, except
when extended use would be permitted by laws or regulations.

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 ANNUAL REPORT 2022

SUSTAINABILITY STATEMENT

4. Accuracy
We will keep personal information accurate and up-to-date and shall take all reasonable steps to ensure that
personal information that is inaccurate will be removed or rectified without delay.

5. Limited retention
We will keep personal information no longer than is necessary for the purposes for which the personal
information was provided. Unless otherwise permitted by laws and regulations, personal information that is
no longer needed or relevant will be purged or deleted.

6. Management of Personal Information

Your personal information is subject to data secrecy. In managing personal information, we assign an officer
in charge of handling personal information, and take appropriate and adequate protective measures on a
technical and organizational level against unauthorized or unlawful use and processing.

7. Provision to Third Parties

Unless otherwise permitted by laws and regulations, we will not provide your personal information to any
third party without your consent. In addition, your personal information will not be transferred to another
country or territory unless that country or territory will ensure an adequate level of data protection.

MOVING FORWARD

As a conscientious corporate citizen, the group genuinely committed to balancing out our good economic
performance with responsible Environment and Social consideration. Even as we focus our efforts on delivering
a sustainable performance on the Economic, Environmental and Social fronts, we will work hard to ensure that
the notion of sustainability becomes embedded within our working culture in a more prominent manner.

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ANNUAL REPORT 2022

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 ANNUAL REPORT 2022

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ANNUAL REPORT 2022

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 ANNUAL REPORT 2022
ate Bette
CORPORATE INFORMATION re

r
TRANSFORM 2025

Co
n n e c ti o n

s
COMPANY SECRETARIES STOCK EXCHANGE

KANG SHEW MENG MAIN MARKET

MAICSA 0778565 BURSA MALAYSIA SECURITIES
CCM Practising Certificate BERHAD
201908002065 Sector : Transportation &
Logistics
SEOW FEI SAN Stock Name : TASCO
MAICSA 7009732 Stock Code : 5140

BOARD OF CCM Practising Certificate

201908002299 WEBSITE

DIRECTORS REGISTERED OFFICE www.tasco.com.my

802, 8th Floor, Block C AUDIT COMMITTEE

Kelana Square
17 Jalan SS7/26 KWONG HOI MENG
LEE CHECK POH 47301 Petaling Jaya Independent Non-Executive Director
Non–Independent Executive Chairman Selangor Darul Ehsan Chairman
Tel : 03-78031126
Fax : 03-78061387 RAYMOND CHA KAR SIANG
ANDY LEE WAN KAI
Independent Non-Executive Director
REGISTRARS Member
Non-Independent Group
Chief Executive Officer SECURITIES SERVICES RAIPPAN S/O YAGAPPAN @
(HOLDINGS) SDN BHD RAIAPPAN PETER
Level 7, Menara Milenium Independent Non-Executive Director
TAN KIM YONG Jalan Damanlela Member
Non-Independent Deputy Group Pusat Bandar Damansara
Chief Executive Officer Damansara Heights NOMINATING COMMITTEE
50490 Kuala Lumpur
Tel : 03-20849000 RAYMOND CHA KAR SIANG
Fax : 03-20949940 Independent Non-Executive Director
FREDDIE LIM JEW KIAT
Chairman
Non-Independent Executive Director
AUDITORS
KWONG HOI MENG
MAZARS PLT Independent Non-Executive Director
NORIHIKO YAMADA Chartered Accountants Member
Non-Independent Executive Director Wisma Golden Eagle Realty
11th Floor, South Block RAIPPAN S/O YAGAPPAN @
142-A Jalan Ampang RAIAPPAN PETER
KWONG HOI MENG 50450 Kuala Lumpur Independent Non-Executive Director
Independent Non-Executive Director Tel : 03-27025222 Member

PRINCIPAL BANKERS REMUNERATION COMMITTEE

RAYMOND CHA KAR SIANG MALAYAN BANKING BERHAD RAIPPAN S/O YAGAPPAN @
Independent Non-Executive Director RAIAPPAN PETER
MUFG BANK (MALAYSIA) Independent Non-Executive Director
BERHAD Chairman
RAIPPAN S/O YAGAPPAN @
RAIAPPAN PETER MIZUHO BANK (MALAYSIA) RAYMOND CHA KAR SIANG
Independent Non-Executive Director BERHAD Independent Non-Executive Director
Member

KWONG HOI MENG

DATUK DR WONG LAI SUM Independent Non-Executive Director
Independent Non-Executive Director Member

58
 ANNUAL REPORT 2022

BOARD OF DIRECTORS

1. Lee Check Poh Non-Independent Executive Chairman

2. Andy Lee Wan Kai Non-Independent Group Chief Executive Officer
3. Tan Kim Yong Non-Independent Deputy Group Chief Executive Officer
4. Norihiko Yamada Non-Independent Executive Director
5. Freddie Lim Jew Kiat Non-Independent Executive Director
6. Kwong Hoi Meng Independent Non-Executive Director
7. Datuk Dr Wong Lai Sum Independent Non-Executive Director
8. Raippan s/o Yagappan @ Raiappan Peter Independent Non-Executive Director
9. Raymond Cha Kar Siang Independent Non-Executive Director

6 8 9
7

4 1
3
2
5

Note:
1. No Director has any family relationships with any other Directors and/or major shareholders of the
Company except Mr. Lee Wan Kai who is the son of Mr. Lee Check Poh.
2. Other than the related party transactions disclosed in the Annual Report, no Director has any conflict of
interest with the Company.
3. No Director has been convicted of any offences within the past 5 years other than traffic offences, if any.

59
 ANNUAL REPORT 2022

PROFILE OF BOARD OF DIRECTORS

LEE CHECK POH AGE

Non-Independent Executive Chairman 73

Qualification
• Bachelor of Arts in Economics
(Hosei University, Japan)
• Master of Arts in Economics
(Lakehead University, Canada)

Other Directorship in Public Company

None

Date of Appointment
24 April 1989

Experience
- Currently appointed as the Executive
Chairman.
- Joined the Group in year 1977 and appointed
as a Director and the Managing Director
in year 1989 and 1998 respectively. Re-
designated as Executive Chairman in 2013
- Was appointed as an Executive Director
and later as the Managing Director of Sony
Logistics (M) Sdn Bhd between 1989 and
2004
- Was appointed as the Chairman of Yusen
Logistics (Singapore) Pte Ltd and Chief
Regional Officer of Yusen Logistics South
Asia Oceania Region from April 2015 to June
2018
- Was appointed as the Director / Executive
Officer of Yusen Logistics Co., Ltd from April
2015 to March 2018
- Was appointed as Corporate Officer of
Nippon Yusen Kabushiki Kaisha from April
2018 to March 2020

Training
Effective Leadership Communication Training

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 ANNUAL REPORT 2022

PROFILE OF BOARD OF DIRECTORS

Date of Appointment: 1 April 2020

ANDY LEE WAN KAI Other Directorship in Public Company: None
Non-Independent Group Chief Executive Officer
Qualification
• Bachelor of Commerce (Queen’s University, Canada)

Experience
• Currently appointed as Group Chief Executive Officer
• Appointed as the Chief Business Development Officer from
April 2019 to March 2020
• Appointed as Managing Director of TASCO Yusen Gold Cold
Sdn Bhd (a subsidiary of TASCO) from September 2017 to
March 2020
AGE
• Appointed as Operation Director in charge of Supply Chain
46 Solutions Function from June 2014 to December 2017
• Joined the Group in 2005 and appointed as Corporate
Executive Director in 2010
• Prior to his joining the Group, he was practising as a
Certified Public Accountant in the audit firms involved in
audit engagement, taxation, initial public offering, merger and
acquisition projects

Training
• Focus Group Session on Bursa Malaysia’s Sustainability
Reporting Framework Review

Date of Appointment: 17 February 2011

TAN KIM YONG Other Directorship in Public Company: None
Non-Independent Deputy Group
Chief Executive Officer
Qualification
• Chartered Accountant of the Malaysian Institute of
Accountants (MIA)

Experience
• Currently appointed as the Deputy Group Chief Executive
Officer in charge of Corporate Development Function Group
• Re-designated as Deputy Group Chief Executive Officer in
June 2019
• Joined the Group in 1996 and appointed as Deputy Managing
AGE
Director in 2011
60 • Prior to his joining the Group, he was in the auditing line,
handled project accounting for a construction company
and held the post of Financial Controller in an engineering
company and in a German multinational company

Training
• Webinar : Post-Budget 2022 : Unpacking the Tax Implications
• MIRA Sustainability Programme – Sustainability Accelerator –
Workshop A, B, C and D

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 ANNUAL REPORT 2022

PROFILE OF BOARD OF DIRECTORS

Date of Appointment: 19 August 2013

FREDDIE LIM JEW KIAT Other Directorship in Public Company: None
Non-Independent Executive Director
Qualification
• Malaysia Certificate of Education

Experience
• Currently appointed as the Group Chief Executive Officer
(“CEO”) of TASCO Yusen Gold Cold Sdn Bhd (a subsidiary of
TASCO)
• Resigned as Group CEO of TASCO Berhad in April 2020
• Re-designated as Group CEO of TASCO Group in June 2019
• Joined the Group in 1991 and appointed as the Managing
Director from 2013 to 2019
AGE • During his employment in the Company, he was assigned to
61 various business divisions of the Group
• Prior to his joining the Group, he was involved in sales, dealing
in courier services, chemicals and computers

Training
• Effective Leadership Communication Training

Date of Appointment: 1 April 2019

NORIHIKO YAMADA Other Directorship in Public Company: None
Non-Independent Executive Director
Qualification
• Bachelor of Humanities and Social Sciences
(Shizuoka University, Japan)

Experience
• Currently appointed as the Director in charge of the Business
Development Function and a representative of YLK
• Appointed as Chief Business Development Officer on 1 April 2020
• Joined Yusen Air & Sea Service Co. Ltd, Nagoya Cargo Branch in
1992 as Customs Clearance staff, transferred to Nagoya Export
AGE
Branch from 1993 to 1996 gaining invaluable experience in import
54 and export procedures. Assigned to Sales Promotion Section of
Okaya from 1996 to 1998
• Assigned to Miami Branch for a year (1998 – 1999) and thereafter
recalled back to Japan to work in Central Japan Sales Division
from 1999 to 2005
• Seconded to San Diego Sales Office from 2005 to 2008,
thereafter transferred to Los Angeles Branch to in-charge of Sales
Promotion of Los Angeles and San Diego and Sales Department
Management until 2010
• Recalled to Japan in 2010 and was promoted as Manager in 2012
to in-charge of Development Sales Strategy of Business Planning
Section at Global Headquarters thereafter transferred to Kansai
Import Branch and work until his appointment to Malaysia as an
Executive Director in April 2019

Training
• Webinar Series : ESG and Sustainability Reporting

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PROFILE OF BOARD OF DIRECTORS

Date of Appointment: 30 October 2007

KWONG HOI MENG Other Directorship in Public Company: None
Independent Non-Executive Director
Qualification
• Ordinary member of Malaysian Institute of Certified Public
Accountants (MICPA)
• Chartered Accountant of Malaysian Institute of Accountants
(MIA)
• Approved Company Auditor

Experience
• Appointed as an Independent Director in year 2007 and also
the Chairman of the Audit Committee and a member of the
Nominating Committee and Remuneration Committee
AGE • Became an ordinary member of the MICPA and a Chartered
55 Accountant of the MIA in 1994 and an Approved Auditor in
2006
• Currently an Audit Partner of Messrs Kwong & Wong.

Training
• 2022 Budget Seminar
• Securities Commission’s Audit Oversight Board Conversation
with Audit Committee
• MIA Webinar Series : A Technical Booster on the Three Critical
Standards MFRS/IFRS 9, 15 and 16

Date of Appointment: 30 October 2007

RAYMOND CHA KAR SIANG Other Directorship in Public Company: None
Independent Non-Executive Director
Qualification
• LLB (Hons) Malaya (University of Malaya)

Experience
• Appointed as an Independent Director in year 2007. He is also
the Chairman of the Nominating Committee, a member of the
Audit Committee and Remuneration Committee
• Admitted to the Malaysian Bar as an Advocate and Solicitor of
the High Court of Malaya in 1996 and currently appointed as
the Managing Partner of Putra Ray & Partners
AGE
51 Training
• Webinar Series – Corporate Liability under S17A of the MACC
Act 2009 and its Mitigation

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PROFILE OF BOARD OF DIRECTORS

Date of Appointment: 30 October 2007

RAIPPAN S/O YAGAPPAN Other Directorship in Public Company: None
@ RAIAPPAN PETER
Independent Non-Executive Director Qualification
• Bachelor of Arts in History and Economics
(University of Malaya)

Experience
• Appointed as an Independent Director in year 2007. He is also
the Chairman of the Remuneration Committee, a member of
the Nominating Committee and Audit Committee
• Served in the Ministry of Labour (now known as the Ministry
of Human Resource) between 1967 and 1994. Retired as the
Deputy Director General of the Industrial Relations Department.
AGE Currently, the Managing Consultant of Inforite IR Consultancy
78
Training
• Securities Commission’s Audit Oversight Board Conversation
with Audit Committee
• Fraud Risk Management Workshop

Qualification
DATUK DR WONG LAI SUM • PhD Business, University Malaya
Independent Non-Executive Director • Master in Public Administration, University Malaya
• Bachelor of Science (Hons) Biochemistry, University Malaya

Experience
• Appointed as an Independent Director in year 2019
• Adviser of Faculty of Business and Accountancy in University of
Malaya since 2016 to 2021
• Conjoint Professor (Practice) of Faculty of Business in University of
Newcastle, Australia from 2016 to 2018
• Associate Professor of Faculty of Business and Research Fellow
of TAR University College from 2016 to 2018 and 2018 to 2019
respectively
• Singapore Business Advisory Group of University of Newcastle from
AGE 2016 to 2018
67 • Director of Port Klang Authority from 2016 to 2017
• Economic Adviser to the Minister of Transport, Ministry of Transport
Malaysia from 2016 to 2018
• Advisor to the National Export Council and CEO of the Malaysia
External Trade Development Corporation from 2015 to 2016 and
2012 to 2015 respectively
• Director of Malaysia Petroleum Resources Council from 2013 to 2015
• Director and Trustee of the Malaysia Furniture Promotion Council
from 2012 to 2015
• Director of MyCEB Tourism from 2012 to 2014
• Co-Chairman of Professional Services Development Council,
Malaysia from 2012 to 2014
Date of Appointment: 1 March 2019
Training
Other Directorship in Public Company: • Malaysia National E&E Forum 2021
• SAM Engineering & Equipment (M) Berhad • Sustainability and Circular Economy
• Milux Corporation Berhad • Reimagining the Modern Workplace
• Securities Commission’s Audit Oversight Board Conversation with
Audit Committee
• The Future State : Escalating Sustainable Growth

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PROFILE OF KEY MANAGEMENT

CHE WUI CHING HARIS FAZAIL BIN HAROON

Corporate Director Corporate Director

AGE AGE
Finance Group 48 Quality & Performance 57
Improvement Group

Qualification Qualification
Bachelor of Commerce in Accounting Advanced Diploma in Business Administration
(University of Otago, New Zealand) (Transport) (Institute Teknologi MARA Shah Alam)

Working Experience Working Experience

• Joined the Company in 1999 as an Assistant • Joined the Company in 1995 as an Executive
Supervisor • Appointed as Corporate Director of TASCO in 2011
• Appointed as the Corporate Director in 2016 • In charge of Quality & Performance Improvement
• In charge of the Finance Group Group, Haulage & Trucking Group
• 25 years of working experience in accounts and • 27 years of working experience in the trucking
finance business

MOHD SUFFIAN BIN MOHD SAID KONG PUI KIN

Corporate Director Senior General Manager

AGE AGE
Customs Forwarding Group 54
Business Development, 52
and Compliance Group Japanese Account Management Group

Qualification Qualification
Bachelor in Business Administration Bachelor of Arts in Business Management
(University of North Texas, USA) (Reitaku University, Japan)

Working Experience Working Experience

• Joined the Company in 2008 as Deputy General • Joined the Company in 2012 as Deputy General
Manager Manager
• Appointed as Corporate Director in 2016 • Promoted to Senior General Manager in 2020
• In charge of Customs Forwarding Group and • In charge of Japanese Account Management Group
Compliance Group • 16 years of air freight forwarding experience, in-
• 31 years of logistics and supply chain experience charge of International Freight Forwarding since
year 2017 to March 2022.

DORAIRAJ A/L SENGARAM LIM CHIN LEE

Corporate Director Senior General Manager

AGE AGE
Operations 56
Business Development, Non-Japanese 50
Account Management Group

Qualification Qualification
Bachelor in Business Administration Bachelor of Commerce in Marketing and
(University Utara Malaysia) Management (Curtin University, Perth, Western
Australia)
Working Experience
• Joined the company in 2011 as General Manager Working Experience
• Appointed as Chief Operating Officer in • Joined the Company in 2000 as an Executive
December 2017 • Promoted to Senior General Manager in 2021
• Appointed as Corporate Director in 2016 • In charge of Business Development, Accounts
• In charge of Operations Management Group
• 32 years of logistics experience • 24 years working experience in total logistics
sales

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PROFILE OF KEY MANAGEMENT

SUNG BOON LEONG LAWRENCE QUEK HWAI CHOO

Corporate Director General Manager

AGE AGE
Northern Region Head 64 Southern Region Head 54

Qualification Qualification
Bachelor of Social Science in Economics and Diploma in Business Management
Psychology (Universiti Kebangsaan Malaysia) (SBTC College, Johor, Malaysia)

Working Experience Working Experience

• Joined the Company in 1989 as an Officer • Joined the company in 2010 as Manager
• Appointed as Corporate Director in 2016 • Promoted to General Manager in 2021
• In charge of Northern Region branches • In charge of Southern Region branches
• 33 years of logistics experience working in • 34 years of logistics working experience
the Company

LIOW WEI KUNG CHOY WENG HOE

Corporate Director Corporate Director

AGE AGE
IT Development Group 62 Finance, Legal & 50
Human Resource Group
TASCO Yusen Gold
Cold Sdn Bhd (“TYGC”) Group
Qualification
Bachelor of Science (Hons) Computing
(University of Bolton, UK) Qualification
Higher Diploma in Accounting Master of Business Administration
(Charles Sturt University, Australia)
Working Experience Chartered Accountant of the Malaysian Institute of
• Joined the Company in 1991 as Head of Accountants (MIA)
Accounts Department in Penang Prai Logistics
Centre Working Experience
• Appointed as Head of Planning and Control in • Joined Gold Cold Transport Sdn Bhd as Head of
Head Quarter in 1999 Finance since year 2015
• Appointed as Head of IT Division in 2002 • Appointed as Corporate Director of TYGC in 2019
• Appointed as the Corporate Director in 2021 • In charge of Finance, Legal and Human Resource
• In charge of IT Software Development Group of TYGC Group
• 20 years of experience in Software Engineering • 30 years of experience in accounts and finance
and Project Management. 12 years of experience
in Accounting and Finance

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PROFILE OF KEY MANAGEMENT

TAN NEE PHING TAN JUI HOW

Corporate Director Corporate Director

AGE AGE
Business Development 52 57 Convenience Retail Division and
Cold Chain Division of TYGC Group IT Development Group of TYGC Group

Qualification Qualification
Bachelor Degree in Marketing Master of Business Administration
(University of Mississippi, USA) (University of Hull, UK)
Bachelor in Computer Science
(Universiti Kebangsaan Malaysia)
Working Experience
• Joined Gold Cold Integrated Logistics Sdn Bhd
as Senior Manager, Logistics Hub-Business & Working Experience
Solutions Development since 2006 • Joined TYGC in 2018 as Corporate Director
• Appointed as Corporate Director in TYGC in 2019 • In charge of Convenience Retail Division and IT
• In charge of Cold Chain Division of TYGC Group Development Group of TYGC Group
• 29 years of experience in logistics industry • 16 years of experience in information technology,
focusing in cold chain warehousing and business process, supply chain & logistics in
transportation convenience retail chain
• Prior to the above, he gained experience as
Internal Auditor in Bank Negara and Head of
Operations in several stockbroking firms

TAI KAIN FATT

Corporate Director
AGE
Contract Logistics and Trucking Group 42
of TYGC Group

Qualification
Fellow Member of the Association of Chartered
Certified Accountants (FCCA)

Working Experience
• Joined the Company in 2010 as a Manager in
Supply Chain Support
• Appointed as Corporate Director of TYGC in 2021
• In charge of Contract Logistics and Trucking
Group
• 12 years of experience in logistics industry
• Prior to the above, he practiced as a Chartered
Accountant.

Note :
1. No Key Senior Management has any family relationships with any directors and/or major shareholders of the Company.
2. No Key Senior Management has any conflict of interest with the Company.
3. No Key Senior Management has been convicted of any offences within the past 5 years other than traffic offences, if any.

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CORPORATE GOVERNANCE OVERVIEW STATEMENT

To earn the trust of stakeholders – not only shareholders but also customers, business partners and the
regional communities in which TASCO maintains a presence – and meet their expectations, the Group
strives to build and further enhance a management structure optimised for management transparency
and efficiency.

Guidelines

The Board of Directors (“Board”) is committed in ensuring that the principles and best practices on corporate
governance are observed and practised throughout the Group as the fundamental part of discharging its
responsibilities to protect, enhance shareholders’ value and to continue delivering sustainable performance.

The Malaysian Code on Corporate Governance (“Code”) sets out the principles and best practices on structures
and processes that the Group may use towards achieving their optimal governance framework. The Board has
also provided specific disclosures on the application of each practice in its Corporate Governance Report (“CG
Report”). The CG Report was announced to Bursa Securities together with the Annual Report of the Company. A
copy of the CG Report can be obtained from the Company’s website at www.tasco.com.my. Shareholders are
advised to read this Overview Statement together with the CG Report.

Set out below is the manner in which the Group has applied the principles of corporate governance and the extent
to which it has complied with the best practices set out in the Code.

BOARD LEADERSHIP AND EFFECTIVENESS

I Board Responsibility

Internal Organisation Structure

The Board comprises nine (9) members, including four (4) Independent Non-Executive Directors. The
Board had also established the following three (3) Board Committees and at management level a Risk
Management Committee to assist the Board in carrying out its fiduciary duties. The Board Committees are:

(a) Nominating Committee

(b) Remuneration Committee
(c) Audit Committee

These Board Committees deliberate on particular issues and report their findings and recommendations to
the Board. However, the ultimate responsibility for all decisions lies with the entire Board.

The Executive Committee headed by the Group Chief Executive Officer comprises fifteen (15) members
including Executive Directors from the Board and senior level staff. The Executive Committee is responsible
to discuss matters of particularly critical importance from the prospective of day to day management and
operation strategies.

The positions of the Chairman and the Group Chief Executive Officer are held by two (2) individuals to
promote accountability and facilitates the division of responsibilities between them. There is a clear division
of responsibilities between the Chairman and the Group Chief Executive Officer, which will ensure a balance
of power and authority. The Chairman is primarily responsible for the orderly conduct and workings of
the Board, which includes leading the board in its collective oversight of management. While the Group
Chief Executive Officer focuses on the business and day-to-day operations as well as coordinating the
development and implementation of business and corporate strategies. The division of responsibilities have
clearly defined in the Board Charter.

Overall, our internal organisation structure is designed to clarify lines of authority and responsibility for
the business and operation strategies, promote fast and accurate decisions, and enhance management
transparency and efficiency.

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CORPORATE GOVERNANCE OVERVIEW STATEMENT

General Meeting of Shareholders

Appointments, Dismissals
Board of Directors

Nominating Committee Reports Reports

Remuneration Committee Group Chief Executive Officer

Audit Committee Supervision

Executive Committee
Risk Management Committee Reports
Supervision
External Auditor
Divisions / Branches /
Internal Auditor
Departments / Group Companies
Internal Audits

Board Charter and Directors’ Code of Conduct and Ethics

The Board has formally adopted a Board Charter, which provides guidance to the Board in the fulfilment of
its roles, duties and responsibilities which are in line with the principles of good corporate governance. The
Board Charter provides guidance for Directors and Management on the responsibilities of the Board, its
Committees and requirements of Directors and it is subject to periodical review to ensure consistency with
the Board’s strategic intent as well as relevant standards of corporate governance. The Board reviewed the
Board Charter on 28 April 2022.

The Board is also committed to conducting business in accordance with the highest standards of business
ethics and complying with applicable laws, rules and regulations. The Directors’ Code of Conduct and Ethics
provide guidance for Directors regarding ethical and behavioural considerations and/or actions as they
address their duties and obligations during their appointment.

The Board Charter and Directors’ Code of Conduct and Ethics are made available for reference in the
Company’s website at www.tasco.com.my. The Board Charter would be reviewed periodically and updated
in accordance with the needs of the Company and any new regulation that may have an impact on the
discharge of the Board’s responsibility.

Corporate Compliance Policy and Whistleblowing Policy and Procedure

The Company has established a Corporate Compliance Policy to steer acceptable employment practices,
ethical values and conduct for behaviour of employees. The Board also encourages employees within the
Group to report suspected and/or known misconduct, wrongdoings, corruption, fraud, waste and/or abuse
involving resources of the Company. The Whistleblowing Policy and Procedure adopted by the Company
provides and facilitates a mechanism for any individual to report concerns about any suspected and/or
known misconduct, wrongdoings, corruption, fraud, waste and/or abuse.

The Corporate Compliance Policy and Whistleblowing Policy and Procedure are made available for reference
in the Company’s website at www.tasco.com.my.

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CORPORATE GOVERNANCE OVERVIEW STATEMENT

Succession Planning

The Board reckoned the importance of succession planning to ensure the sustainability and continuity of
the Group. All candidates appointed to senior management positions are of sufficient caliber and that there
are programmes to provide for the orderly succession of senior management. Succession planning also
includes appointing, assessing, training, fixing the compensation of and where appropriate, replacing senior
management when necessary.

The Chairman of the board should not be a member of the Audit Committee, Nominating Committee
and Remuneration Committee

To avoid the impairment of the objectivity of the Chairman and the board when deliberating on the observations
and recommendations put forth by the board committees, the Chairman of the board is not a member of the
Audit Committee, Nomination Committee or Remuneration Committee to ensure there is check and balance
as well as objective review by the board.

Qualified Company Secretaries

The Board would ensure the Company is supported by qualified, experienced and competent company
secretary. The Company Secretary is capable as official liaison party to TASCO to communicate, prepare
and submit statutory returns with the Companies Commission of Malaysia (“CCM”) in compliance with the
statutory requirements under the Malaysian Companies Act 2016 (“Act”) and Bursa Malaysia Securities
Berhad.

The Company Secretary plays an important role in advising the Board on issues relating to corporate
compliance with the relevant laws, rules, procedures and regulations affecting the Board and the Group,
as well as best practices of governance. The Directors have ready and unrestricted access to the advice
and services of the Company Secretary. The Board is regularly kept up to date on and apprised of any
regulations and guidelines.

The appointment and removal of the Company Secretary shall be within the purview of the Board.

Board meeting

The Board convenes at least four (4) scheduled Board meetings during each financial year. More meetings
will be scheduled depending on business requirements, where appropriate. During the financial year, a total
of four (4) Board meetings were held.

The Chairman has structured with a pre-set agenda for the Board meeting and adequate time was allocated
for discussion of issues tabled to the board for deliberation. The agenda and the Board papers are circulated
to Directors seven (7) days in advance to enable the Directors to effectively discharge their responsibilities.
Any additional information requested by Directors is readily available and will be provided in a timely
manner. Reports on the performance of the Group are also circulated to the Directors for their perusal and
comments. The Board also has a formal schedule of matters reserved to it for deliberation and decision
such as the approval of annual and interim results, major capital expenditure, budgets, major investments,
strategic issues affecting the business of the Group, corporate policies and procedures and corporate plans.

In addition, on important matters that require the Board’s decisions, prior briefings, if necessary, are provided
or conveyed by Executive Directors to other Board members to ensure full knowledge and understanding
thus enhancing the members’ comprehension of Board papers before deliberations.

The Board is also notified of any corporate announcements to be released to Bursa Malaysia and is kept
informed of updates issued by the various regulatory authorities.

All the deliberations and decisions of the Board meetings have been accurately reflected in the minutes
including any dissenting views and if any director had abstained from voting or deliberating on a particular
matter. The minutes will be circulated in a timely manner, and the Chairman signed the minutes upon
confirmation by the Board of Directors and Board Committees at the next meeting.

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CORPORATE GOVERNANCE OVERVIEW STATEMENT

In furtherance of their duties, the Directors have access to all information pertaining to the Group as well
as to seek independent professional advice at the Company’s expense, if necessary. The Directors also
have access to the advice and services of the Company Secretary who must ensure that all necessary
information is obtained from Directors both for the Company’s own records and for the purposes of meeting
statutory obligations as well as obligations arising from the Main Market Listing Requirements (“LR”) of
Bursa Malaysia and other regulatory requirements. The Board acknowledges the fact that the Chairman is
entitled to the positive support of the Company Secretary in ensuring the effective functioning of the Board.

The underlying factors of directors’ commitment to the Company are devotion of time and continuous
improvement of knowledge and skill sets. Besides Datuk Dr Wong Lai Sum, who is currently holding two (2)
directorships in other public listed companies, none of the other Directors held directorship in other listed
company.

The annual schedule of meetings of the Board, its Committees and shareholders meeting are usually set
at the end of each year to enable the Directors to plan ahead and to facilitate their commitment to these
meetings for the following year. Additional meetings are planned as and when necessary. Details of the
attendance at Board and Board Committee meetings are set out in the relevant sections of this Statement.

Sustainability

The Board together with the management takes responsibility for the governance of sustainability in
the company including setting the company’s sustainability strategies, priorities and targets. The Board
recognised that an effective board leadership and oversight require the integration of sustainability
considerations in corporate strategy, governance and decision-making, as sustainability and its underlying
environment, social as well as governance (“ESG”) issues have become increasingly material to the ability
of companies to create durable and sustainable value and maintain confidence of our stakeholder. The
Company has formally adopted a Sustainability Policy to provide a series of guidance to take proactive
actions and effectively measures to anticipate and address material ESG risks and opportunities. The
Sustainability Policy is available in the Company’s website at www.tasco.com.my.

The Board together with the management have set out the long-term strategy, and a clear plan on sustainability
including supporting the global transition to a net-zero economy. Please refer to our Sustainability Statement
from pages 25 to 54.

The Board have identified a designated person within the management, to provide dedicated focus to
manage sustainability strategically, including the integrated of sustainability considerations in the operations
of the company.

II. Composition of the Board

The Board comprises the following members and the details of attendance of each member at the Board
meetings held during the financial year ended 31 March 2022 are as follows:

Status of Meeting
Name Independent
Directorship Attended
Lee Check Poh (Chairman) Executive No 4/4
Lee Wan Kai (Group Chief Executive Officer) Executive No 4/4
Tan Kim Yong (Group Deputy Chief Executive Officer) Executive No 4/4
Lim Jew Kiat Executive No 4/4
Norihiko Yamada Executive No 4/4
Raymond Cha Kar Siang Non-Executive Yes 4/4
Kwong Hoi Meng Non-Executive Yes 4/4
Raippan s/o Yagappan @ Raiappan Peter Non-Executive Yes 4/4
Datuk Dr Wong Lai Sum Non-Executive Yes 4/4

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CORPORATE GOVERNANCE OVERVIEW STATEMENT

The Group is headed by an experienced and dynamic Board comprising professionals, ex-civil servants,
long serving staff and entrepreneurs with diverse skills from a wide range of business, financial, economic
and legal backgrounds. The Board effectively controls the direction and provides leadership for the Group
by setting appropriate objectives and strategic directions and is responsible for the overall operations and
management of the Group.

The Board reviews and adopts a strategic plan, which covers the core business of the Group. The various
strategies and objectives identified in the plan are monitored and evaluated during the implementation. In
addition, the Board implements a risk management system which identifies the principal risks and ensures
the implementation of the management of those risks to mitigate the impact of any such risks. Its other
responsibilities include reviewing the adequacy and integrity of the Group’s internal control systems and
management information systems for compliance with applicable laws, regulations, rules, directives and
guidelines as well as development and implementation of the succession planning for senior management
and investor relations programme for the Group.

The Board considers that the current size of the Board is adequate and facilitates effective decision making.
The Board also reviews on an annual basis the appropriateness of its size.

The Board’s composition complies with the LR that requires at least 1/3 of the Board to comprise Independent
Non-Executive Directors. However, it is not in line with Practice 5.2 of the Code where it requires at least
half of the Board members comprises independent directors. Necessary steps will be taken to meet the
requirements of the Code as mentioned above. The appointment of Datuk Dr Wong Lai Sum as our
Independent Non-Executive Director in March 2019 has brought us one step closer to the observance of
Practice 5.9 of the Code.

There is a balance in the Board because of the presence of Independent Non-Executive Directors who
bring strong independent judgment, knowledge, skills and experience to the Board’s deliberations during the
decision making process. The Independent Non-Executive Directors ensure that the interest of the minority
shareholders and other stakeholders are given due consideration in the deliberations of the various issues
and matters affecting the Group.

Tenure of Independent Directors

The Board does not have term limit for its Independent Directors and is of the view that the independence
of the Independent Directors should not be determined solely or arbitrary by their tenure of service as there
are significant advantages to be gained from long-serving directors who possess tremendous insight and
in-depth knowledge of the Group’s business and affairs. The Board believes that continued contribution
will provide stability and benefits to the Board and the Company as a whole, especially their invaluable
knowledge of the Group and its operations gained through the years. The caliber, qualification, experience
and personal qualities, particularly of the Director’s integrity and objectivity in discharging his responsibilities
in the best interest of the Company predominantly determines the ability of a Director to serve effectively as
an Independent Director.

The Board is also confident that the Independent Directors themselves, after having provided all the relevant
confirmations on their independence, will be able to determine if they can continue to bring independent and
objective judgement on Board deliberations and decision making.

The Independent Directors of the Company who have served for a cumulative term of more than twelve (12)
years are Mr. Kwong Hoi Meng, Mr. Raymond Cha Kar Siang and Mr. Raippan s/o Yagappan @ Raiappan
Peter.

The Board has decided to retain them as Independent Directors notwithstanding their services for a
cumulative term of more than twelve (12) years as Independent Directors after assessment of their
performance, experience, expertise and recommendation by the Nominating Committee.

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Nevertheless, as the independent directors mentioned above have served as Independent Directors of
TASCO for more than twelve (12) years, the Board will seek approval from the shareholders of the Company
at the forthcoming AGM to support the Board’s decision to retain them as Independent Director without
going through the two-tier voting process based on the following justifications:-

• They have fulfilled the criteria under the definition of Independent Director as stated in the LR and thus
they would be able to bring an element of objectivity to the Board;

• They have vast and diverse range of experiences in various industries and therefore would be able to
provide constructive opinion, independent judgment and to act in the best interest of the Company and
shareholders;

• They have continued to exercise their independence and due care during their tenure of service; and

• They have shown great integrity and independence, and had not entered into any related party
transactions with the Group.

Appointment and Re-election of Directors

The Company has in place a nomination process to appoint new directors but it does not have a set of
specific criteria for assessment and selection of director candidate. However, consideration would be taken
on the need to meet the regulatory requirements such as the Act, the LR and other criteria discussed in the
following paragraphs.

The Nominating Committee is empowered to identify and recommend new appointments to the Board. The
potential candidates may be proposed by independent sources, existing directors, senior management staff,
shareholders or third party referral. Under normal circumstances, the Nominating Committee would review
new board candidates to fill vacancy arises from resignation, retirement or any other reasons and make
the recommendation to the Board thereon for decision. Based on the recommendation of the Nominating
Committee, the Board would evaluate and decide on the appointment of the proposed candidate.

Upon receipt of the proposal, the Nominating Committee is responsible to conduct an assessment and
evaluation on the proposed candidate. The assessment/evaluation process may include, at the Nominating
Committee’s discretion, reviewing the candidate’s resume, curriculum vitae, candidate’s qualifications as
well as formal or informal interview at the Nominating Committee’s discretion.

In discharging its duty, the Nominating Committee will assess the suitability of an individual to be appointed to
the Board by taking into consideration the individual’s skills, knowledge, expertise, experience, age, cultural
background, gender, strength of qualities and competency and understanding of the business environment.
The Nominating Committee will also further consider on the time that the candidate able to devote to serve
the Board effectively.

The Company has a gender diversity policy in place, whereas the gender diversity policy required that in
any list of proposed candidates to the Board and/or Senior Management shall consist of at least one (1)
woman candidate, wherever reasonably possible during the selection process. The Nominating Committee
and the Board are responsible in ensuring that gender diversity objectives are adopted in board and senior
management recruitment, board and senior management performance evaluation and succession planning
processes respectively. The Company shall provide a suitable working environment that is free from
harassment and discrimination in order to attract and retain women participation in the Board and Senior
Management. A female director has been appointed since 1 March 2019. There are two (2) female members
in the Executive Committee of the Board, which is equivalent to 14.3%.

For appointment of Independent Directors, the Nominating Committee would also assess whether the
candidate meets the requirements for independence based on criteria prescribed in the LR.

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CORPORATE GOVERNANCE OVERVIEW STATEMENT

In accordance with the Company’s Constitution, all newly appointed Directors are subject to retirement and
are entitled for re-election at the first annual general meeting (“AGM”) after their appointment. At every
subsequent AGM, 1/3 of the existing Directors including the Managing Director, or if their number is not three
(3) or a multiple of three (3), then the number nearest to one third shall retire from office provided always that
all Directors shall retire from office once at least in each three (3) years, but shall be eligible for re-election.
An election of Directors shall take place every year. The election of each Director is voted separately. Any
person appointed by the Board either to fill casual vacancy or as an addition to the existing Directors, shall
hold office only until the next AGM and shall be eligible for re-election.

For the appointment of Senior Management, the Director that take-charge of the recruitment of the
respective position will take into consideration the objective criteria, merit and with due regard for diversity
in skills, experience, expertise, age, cultural background, gender, strength of qualities and competency and
understanding of the business environment.

Nominating Committee

The Nominating Committee was set up on 6 December 2007 and the terms of reference of the Nominating
Committee and the nomination and election process of directors are made available for reference in the
Company’s website at www.tasco.com.my. The Board reviewed the terms of reference of Nominating
Committee on 28 April 2022. The terms of reference can be obtained from the Company’s website at
www.tasco.com.my.

The Nominating Committee comprises the following members and the details of attendance of each member
at the Nominating Committee meetings held during the financial year ended 31 March 2022 are as follows:

Status of Meeting
Name Independent
Directorship Attended
Raymond Cha Kar Siang (Chairman) Non-Executive Yes 1/1
Kwong Hoi Meng Non-Executive Yes 1/1
Raippan s/o Yagappan @ Raiappan Peter Non-Executive Yes 1/1

The Nominating Committee was set up by the Board to ensure that it has an appropriate balance, size and
the required mix of skills, experience and core competencies to govern the organisation towards achieving
its intended goals and objectives. The Nominating Committee shall propose new candidates for the Board
and assess Directors on an ongoing basis.

a) Annual Assessment of Existing Directors

The director who is subject to re-election and/ or re-appointment at next AGM shall be assessed by
the Nominating Committee before recommendation is made to the Board and shareholders for the
re-election and/ or re-appointment. Appropriate assessment and recommendation by the Nominating
Committee would be based on the yearly assessment conducted.

The Nominating Committee will review and assess the mix of skills, expertise, composition, size and
experience of the Board of Directors. The Nominating Committee will also review and assess the
performance of each individual director, the effectiveness of the Board and the Board Committees. The
Nominating Committee will also assess the directors based on the fit & proper criteria as per the Fit &
Proper Policy recently adopted by the Company

The Nominating Committee had met to review the mix of skills, experience and qualities of the Board
committees and Board members as well as the appropriateness of the size of the Board and concluded
that the Board composition was adequately balanced in ensuring continued effectiveness and efficiency.

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b) Assessment on Independence of Directors

In line with the Code, the Board, with the assistance of the Nominating Committee, is required to review
the independence of the Company’s Independent Non-Executive Directors on an annual basis. The
Board adopts the definition of an ‘Independent Non-Executive Director’ as provided by the LR, and such
definition is used as criteria for Directors’ independence assessment whereby Directors are required to
provide written confirmation on their independence on yearly basis. In addition, a consideration would
be given to assess whether the independent directors are able to act independently of management
and free from any businesses or other relationship.

Any director who considers that he/she has or may have a conflict of interest or a material personal
interest or a director or indirect interest or relationship that could reasonably be considered to influence
in a material way the Directors’ decisions in any matter concerning to the Company is required to
immediately disclose to the Board. The director concerned is to abstain from participating in any
discussion or voting on the respective matter.

Upon the assessment carried out, Nominating Committee satisfied that the Independent Non-Executive
Directors comply with the definition of Independent Non-Executive Directors as defined in the LR.

c) Assessment on AC as a whole and the performance of the individual AC member

The Nominating Committee have reviewed the term of office of the AC members and assessed the
performance of the AC and its members during the financial year and was satisfied with the assessment
results.

During the financial year under review, the Nominating Committee also reviewed and recommended to the
Board the re-election of Directors who retire in accordance with the Company’s Constitution.

Directors’ Training

The Board recognises the needs to attend training to enable them to discharge their duties effectively.

The Board has empowered the Directors of the Company to determine their own training requirements as
they consider necessary or deem fit and expedient to keep themselves updated on the various issues facing
the changing business environment, regulatory and corporate governance developments to enhance their
professionalism and knowledge to effectively discharge their duties and obligations. During the financial
year, all the Directors have attended training listed under their respective individual director profile. This is in
compliance with paragraph 15.08(2) of the LR. A brief description of the trainings attended by the Directors
is as follows: -

No. Programme
1. Effective Leadership Communication Training
2. Webinar - Post-Budget 2022: Unpacking the Tax Implications
3. MIRA Sustainability Programme - Sustainability Accelerator - Workshop A to D
4. Webinar Series : ESG and Sustainability Reporting
5. Focus Group Session on Bursa Malaysia’s Sustainability Reporting Framework Review
6. Webinar Series : Corporate Liability under S17A of The MACC Act 2009 and its Mitigation
7. 2022 Budget Seminar
8. MIA Webinar Series : A Technical Booster on the Three Critical Standards MFRS/IFRS 9, 15 and 16
9. Securities Commission’s Audit Oversight Board (“AOB”) Conversation with Audit Committee
10. Fraud Risk Management Workshop
11. Malaysia National E&E Forum 2021
12. Sustainability and Circular Economy
13. Reimagining the Modern Workplace
14. The Future State : Escalating Sustainable Growth

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For new Directors, a familiarisation programme will be conducted for them. This includes a presentation of
the Group’s operations, meetings with senior management and site visits, where appropriate, to facilitate
their understanding of the Group.

The Board is regularly updated by the Company Secretary on the latest updates and major amendments
made to the LR and other regulatory requirements relating to the discharge of the Directors’ duties and
responsibilities. The External Auditors also highlighted changes to the Malaysian Financial Reporting
Standards and legislation that affect the Company’s financial statements during the financial year.

III Remuneration Committee

The Remuneration Committee comprises the following members and the details of attendance of each
member at the Remuneration Committee meetings held during the financial year ended 31 March 2022 are
as follows:

Status of Meeting
Name Independent
Directorship Attended
Raippan s/o Yagappan @ Raiappan Peter Non-Executive Yes 1/1
(Chairman)
Raymond Cha Kar Siang Non-Executive Yes 1/1
Kwong Hoi Meng Non-Executive Yes 1/1

The Remuneration Committee, set up on 6 December 2007, is responsible for recommending to the Board
the remuneration of the Executive Directors, in all forms. The determination of the remuneration of the Non-
Executive Directors as well as the Executive Directors will be a matter to be determined by the Board as a
whole with the Director concerned abstaining from deliberations and voting on the decisions regarding his
own remuneration.

The terms of reference of the Remuneration Committee has been reviewed by the Board on 28 April 2022
and it complies with the recommendations of the Code. The terms of reference can be obtained from the
Company’s website at www.tasco.com.my.

The levels of remuneration of the Directors should reflect the rate to attract and retain their services taking into
consideration the prevailing market pay and employment conditions within the industry. The remuneration
should comprise components to cover rewards linking corporate performance and individual contribution
towards the overall results, in the case of Executive Directors. Reasonable allowances and fees are paid to
the Non-Executive Directors to commensurate with their experience and skills.

The Board has a Remuneration Policy to establish a formal and transparent procedure for developing the
structure for the remuneration package of Directors and Key Senior Management. The Company aims to
maintain a competitive remuneration package that will attract, retain and motivate a high quality Board and
Key Senior Management to achieve Company’s business objectives and at the same time aligned with
shareholders’ interests. The Remuneration Policy is made available for reference in the Company’s website
at www.tasco.com.my.

Pursuant to Section 230(1) of the Act, the fees of the directors and any benefits payable to the directors of
a listed company and its subsidiaries shall be approved at a general meeting.

The amount of Directors’ fee proposed for the shareholders’ approval at the forthcoming AGM is RM400,000
for the period from 8 September 2022 until the next AGM. In addition, shareholders’ approval will also
be sought at the forthcoming AGM for the payment of Directors’ benefit (excluding Directors’ fees) to the
Non-Executive Directors up to an amount of RM25,000 from 8 September 2022 until the next AGM of the
Company.

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The details of the remuneration of Directors of the Company and Group for the financial year ended 31 March
2022 by category and in the band of RM50,000 are as follows:

Received from the Company

Range of Remuneration Executive Directors Non-Executive Directors

Below RM50,000 - 3
RM50,001 to RM100,000 - 1
RM250,001 to RM300,000 1 -
RM1,100,001 to RM1,150,000 2 -
RM1,200,001 to RM1,250,000 1
RM1,800,001 to RM1,850,000 1 -

The remuneration is further analysed by fees and salaries and other emoluments:

Fees Salaries and other emoluments Total

RM RM RM
Executive Directors - 5,581,497 5,581,497
Non-Executive Directors 204,000 - 204,000

Received from the Group

Range of Remuneration ExecutiveDirectors Non-Executive Directors

Below RM50,000 - 3
RM50,001 to RM100,000 - 1
RM250,001 to RM300,000 1 -
RM1,100,001 to RM1,150,000 2 -
RM1,200,001 to RM1,250,000 1
RM1,800,001 to RM1,850,000 1 -

The remuneration is further analysed by fees and salaries and other emoluments:

Fees Salaries and other emoluments Total

RM RM RM
Executive Directors - 5,581,497 5,581,497
Non-Executive Directors 204,000 - 204,000

The details of the remuneration of Key Management of the Company and Group for the financial year ended
31 March 2022 by category and in the band of RM50,000 are as follows:

Range of Remuneration Group Company

RM250,001 to RM300,000 1 1
RM300,001 to RM350,000 4 4
RM400,001 to RM450,000 2 1
RM450,001 to RM500,000 1 0
RM500,001 to RM550,000 1 -
RM550,001 to RM600,000 2 2
RM600,001 to RM650,000 1 0
RM650,001 to RM700,000 1 1
RM750,001 to RM800,000 1 1

Summary of activities of Remuneration Committee:

• Reviewed the remuneration packages for the Executive Directors.
• Reviewed the fees and benefits of the Non-Executive Directors and recommended to the Board to
seek shareholders’ approval.

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EFFECTIVE AUDIT AND RISK MANAGEMENT

I Audit Committee

The Audit Committee, set up on 6 December 2007, is responsible to assist the Board to review the adequacy
and integrity of the Group’s internal control systems and all financial statements before their submission to
the Board for approval. The terms of reference of Audit Committee has been reviewed on 28 April 2022 and
is available in the Company’s website.

The Chairman of the Audit Committee is not the Chairman of the Board. The Audit Committee comprises
solely Independent Non-Executive Directors. The role of the Audit Committee is to support the Board in
overseeing the processes for production of the financial data, review the financial reports and the internal
control of the Group.

The composition of the Audit Committee together with its reports is presented in Audit Committee Report
in this Annual Report. The Board has not appointed any of the Company’s former key audit partners as a
member of the Audit Committee. The Audit Committee will observe a minimum three (3) years cooling-off
period before any former key audit partner can be appointed as a member of the Audit Committee.

The Board has maintained a professional and transparent relationship with the Group’s auditors, both
external and internal. The Audit Committee seeks regular assurance on the effectiveness of the internal
control systems through independent appraisal by the auditors in ensuring compliance with the applicable
accounting standards in Malaysia. Liaison and unrestricted communication exists between the Audit
Committee and the external auditors.

The external auditors would be re-appointed annually subject to annual evaluation by the Audit Committee.
As part of the evaluation process, the Audit Committee will obtain feedback from the management team on
the quality of the audit service of the external auditors. Audit partner in-charge of a public listed company
should be rotated (within the audit firm) every seven (7) years to ensure independence of audit.

The Audit Committee has conducted the annual evaluation on the suitability and performance of the
auditors based on the relevant criteria set out in the policy and procedures of the Company, which included
adequacy of resources of the firm, quality of service and competency of the staff assigned to the audit, the
external auditors’ independence and the costing. Being satisfied with Mazars PLT’s performance and audit
independence, the Audit Committee recommended their re-appointment as external auditors.

Also, the Audit Committee has obtained written confirmation from the external auditors confirming that they
are, and have been, independent throughout the conduct of the audit engagement for the financial year in
accordance with the terms of all relevant professional and regulatory requirements.

Approval by the Audit Committee is required before any non-audit services are rendered by the external
auditor and its affiliates by taking into account the nature and extent of the non-audit services and the
appropriateness of the level of fees.

The Board at its meeting held on 27 January 2022 accepted the Audit Committee’s recommendation and
was satisfied with Mazars PLT’s suitability and audit independence thus agreed to put forward a resolution
on their appointment to the shareholders for approval at the forthcoming AGM.

For the financial year ended 31 March 2022, statutory audit fees incurred by the Company and on Group
basis is RM120,610 and RM286,736 respectively while the review of quarterly financial statements incurred
by the Company on Group basis is RM86,655.

The non-audit fees incurred for services rendered for the Company and the Group by the external auditors
for the financial year ended 31 March 2022 is RM94,155.

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CORPORATE GOVERNANCE OVERVIEW STATEMENT

The Board, with the recommendations by the Audit Committee, will ensure that all quarterly announcements
and annual reports present a balanced and understandable assessment of the Group’s financial position
and prospect. The Board is also required by the Act to prepare financial statements that give a true and fair
view of the state of affairs, including the cash flows and results of the Group and of the Company for the
financial year. A statement by the Board of its responsibilities for preparing the financial statements is set out
on page 82 of this Annual Report.

In presenting its quarterly results and annual financial statements to the shareholders, the Directors aim to
present a balanced and understandable assessment of the Group’s position and prospects. The Company
has established an appropriate and transparent relationship with its external auditors through the Audit
Committee. The Audit Committee and the Board also review the information to be disclosed before the
release to Bursa Malaysia.

II. Risk Management and Internal Control Framework

The Board recognises the importance of a sound system of internal control for the Group including risk
assessment and acknowledges its ultimate responsibilities in maintaining the same.

The Company adopts the COSO (Committee of Sponsoring Organisations of the Treadway Commission)
control framework throughout our audit implementation as a basis for assessing the adequacy and
effectiveness of the Company’s risk and control processes. The Company has established a Risk
Management Committee at management level which comprises 14 members of senior level staff who are
responsible to ensure that there is a risk management programme in place to identify and manage the major
or significant operational, financial and market risks associated with the Group’s businesses.

The Risk Management Committee seeks to improve the administration and operation of the Company
by adopting the following Risk Tabulation Table to identify and evaluate its risk exposure, focusing on its
operational processes. Appropriate measures will be taken to mitigate these risks in the future.

Risk Tabulation Table

High
LIKEHOOD

Medium

Low

Minor Moderate Major

IMPACT

The terms of reference of the Risk Management Committee have been approved by the Board.

Internal Control System

The Directors recognises their ultimate responsibility for the Group’s system of internal controls and the need to
review the adequacy and the integrity of the internal control systems.

The Directors also take cognisance of the importance of identifying principal risks and having an appropriate
risk management system. The Group has an internal audit function, which reports to the Audit Committee and
assists the Board in monitoring and managing risks and internal controls.

Internal Audit Function

The Board acknowledges its responsibility for maintaining a sound system of internal controls, which provides
reasonable assessment of effective and efficient operations, internal financial controls and compliance with
laws and regulations as well as with internal procedures and guidelines.

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CORPORATE GOVERNANCE OVERVIEW STATEMENT

The Internal Audit Function is outsourced to an independent professional firm, Messrs. Omar Arif & Co. which
reports directly to the Audit Committee. Each quarterly audit is performed by approximately 2 to 3 internal
auditors depending on the area of audit. The Internal Auditor prepares and tables an Annual Internal Audit Plan
for the consideration and approval of the Audit Committee. The Internal Auditor adopts a risk-based approach
in preparing its audit strategy and annual plan was based on the risk profiles of the business operations. The
scope of the internal audit is based on the audit plan. The Internal Auditor reports to the Audit Committee on
a quarterly basis and provides the Audit Committee with independent views on the adequacy, integrity and
effectiveness of the system of internal control after its reviews.

The Audit Committee has conducted an annual assessment of the Internal Audit Function to ensure adequacy
of its scope, competency and resources for it to be able to effectively perform its function in accordance with the
relevant professional standards. While performing the audit, the Internal Auditor is free from any relationships or
conflicts of interest, which could impair their objectivity and independence.

During the financial year, the Internal Auditor conducted audit in the areas of Information Technology Management,
Ocean Freight Forwarding & Origin Cargo Management, Procurement, Asset Management, Trucking, and
Payment. They also conducted Follow-up Audit to ensure the relevant action plans have been carried out for
operations efficiency. During which, the Internal Auditor also tabled the Audit Planning Memorandum to the
Board for approval.

The Group incurred RM51,940 for internal audit costs during the financial year ended 31 March 2022.

The Statement of Risk Management and Internal Control, set out on pages 86 to 87 of this Annual Report, which
has been reviewed by external auditors, provide an overview of the state of internal controls within the Group.
Further information on the internal audit function and its activities are set out on page 87 of this Annual Report.

INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS

I Communicate with Stakeholders

The Board values its dialogue with both institutional shareholders and private investors and recognises that
timely and equal dissemination of relevant information be provided to them. In this regard, it adheres to the
disclosure requirements of Bursa Malaysia by making announcements via the Bursa Malaysia’s website at
www.bursamalaysia.com. Information of the Company is also disseminated through the following channels:

a) Annual Report;
b) Circular to Shareholders; and
c) Company’s website at www.tasco.com.my

Any enquiry regarding the Company and its group of companies may be conveyed to the following personnel:

Mr. Lee Wan Kai

(Group Chief Executive Officer)
Telephone number : 03-51018888
Fax number : 03-55488288
Email address : [email protected]

Mr. Tan Kim Yong

(Deputy Group Chief Executive Officer)
Telephone number : 03-51018888
Fax number : 03-55488288
Email address : [email protected]

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The Board actively engages with the relevant stakeholders ie. employees, shareholders, potential investors,
authorities as well as customers to gain a better understanding of the expectations and concerns of
stakeholders and the company’s impact on them. The Company holds briefing sessions for fund managers,
investment analysts, potential investors and the media in conjunction with the announcement of quarterly
results, yearly financial results to Bursa Malaysia and AGM.

The Company’s annual report is uploaded to the Company’s website and hardcopy is available upon request.
By making various announcements through Bursa Malaysia in particular the timely release of the quarterly
results, members of the public can also obtain the full financial results and the announcements from the
Bursa Malaysia’s website we well as Company’s website.

II. Conduct of General Meeting

The Board encourages shareholders’ active participation at the Company’s general meetings, shareholders
should exercise their rights to ask questions, provide views and vote at general meetings. General meetings
are important platforms for directors and senior management to engage shareholders to facilitate greater
understanding of the company’s business, governance and performance. General meetings enable and
support shareholders in exercising their ownership rights and expressing their views to the board and senior
management on any areas of concerns.

The AGM remains the principal forum for dialogue with shareholders where it provides an opportunity for
the shareholders to seek clarifications on the Group’s operations. Given the significance of AGM, at least 28
days’ notice of meeting together with the Annual Report is sent out to the shareholders. All Board members,
the Chair of Audit, Nominating and Remuneration Committees attended the Forty-Sixth AGM and provided
responses to questions addressed to them. The Chairman and Board members will undertake to provide
the shareholder with a written answer to any significant question that cannot be readily answered. The
Chairman will also ensure sufficient time has been allocated to the shareholders to raise their concerns and
seeks clarification from the Board and Committees members. The external auditors will also be present to
provide their professional and independent clarification on issues and concerns raised by the shareholders,
if any.

Amidst the pandemic, the Company conducted the recent years’ general meetings in a fully- virtual manner,
which leveraging technology to facilitate greater shareholder participation, electronic voting and remote
shareholder participation. The Board endeavored to ensure the virtual meetings supported meaningful
engagement between the board, senior management and shareholders. The minutes of the Annual General
Meetings are made available in the company’s website within 30 business days after the Annual General
Meetings.

All the resolutions tabled to vote in the general meetings are decided by way of poll and the detailed results
are included in the announcements to Bursa Malaysia on the same day of the general meetings.

The Board also ensures that each item of special business included in the Notice of AGM must be
accompanied by an explanation of the effects of the proposed resolution.

Compliance Statement

The Board strives to ensure that the Company complies with the Principles and Best Practices of the Code. The
Board will endeavor to improve and enhance the procedures from time to time.

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CORPORATE GOVERNANCE OVERVIEW STATEMENT

STATEMENTS OF DIRECTORS’ RESPONSIBILITY IN RELATION TO THE FINANCIAL STATEMENTS

The Directors are required by the Act, to prepare financial statements for each financial year which have been
made out in accordance with the applicable approved accounting standards, and give a true and fair view of the
state of affairs of the Group and Company at the end of the financial year and of the results and cash flows of the
Group and Company for the financial year. In preparing the financial statements, the Directors have:

• Selected suitable accounting policies and applied them consistently;

• Made judgments and estimates that are reasonable and prudent;
• Ensure that all applicable accounting standards have been followed; and
• Prepared the financial statements on the going concern basis as the Directors have a reasonable expectation,
having made enquiries, that the Group and Company have adequate resources to continue in operational
existence for the foreseeable future.

The Directors have the responsibility of ensuring that the Company keeps accounting records which disclose with
reasonable accuracy the financial position of the Group and Company and which enable them to ensure that the
financial statements comply with the Act.

The Directors have overall responsibility for taking such steps as are reasonably open to them to safeguard the
assets of the Group to prevent and detect fraud and other irregularities.

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AUDIT COMMITTEE REPORT

The Board is pleased to present the Audit Committee Report for the financial year ended 31 March 2022.

COMPOSITION AND ATTENDANCE

The present composition of the Audit Committee (“AC”) is as follows:

Status of Meeting
Name Independent
Directorship Attended
Kwong Hoi Meng (Chairman) Non-Executive Yes 4/4
Raymond Cha Kar Siang Non-Executive Yes 4/4
Raippan s/o Yagappan @ Raiappan Peter Non-Executive Yes 4/4

The AC has three (3) members, all of whom are Independent Directors. This meets the step-up practice of
Practice 9.4 of the Code where the AC consists solely of independent directors. The AC Chairman is not the
Chairman of the Board in accordance to Practice 9.1 of the Code.

The AC Chairman, Mr Kwong Hoi Meng who is elected among the AC members, is a member of the Malaysian
Institute of Certified Public Accountants and Malaysian Institute of Accountants which complies with paragraph
15.09(1)(c )(i) of the LR.

AUTHORITY

The AC shall be in accordance with the procedures determined by the Board and at the cost of the Group:

a. have explicit authority to investigate any matter within its terms of reference;
b. have the resources which are required to perform its duties;
c. have full and unrestricted access to any information pertaining to the Group;
d. have unrestricted access to the Group Chief Executive Officer;
e. have direct communication channels with the external auditors and person(s) carrying out the internal audit
function;
f. be able to obtain independent/external professional or other advice and to secure the attendance of outsiders
with relevant experience and expertise if it considers this necessary; and
g. be able to convene meetings with the external auditors, the internal auditors or both excluding the attendance
of other directors and employees of the Group, whenever deemed necessary.

The full terms of reference of the AC can be viewed at the Company’s website at www.tasco.com.my.

MEETINGS

The AC met four (4) times during the financial year ended 31 March 2022 with full attendance.

Minutes of each meeting were recorded and tabled for confirmation at the next AC meeting and were subsequently
noted by the Board. The Chairman also conveyed to the Board matters of significant concern as and when raised
by the External Auditors or Internal Auditors.

The lead audit partner of the External Auditors responsible for the Group audit attended two (2) AC meetings
during the financial year to present the Audit Progress Memorandum and Audit Planning Memorandum before
commencement of the audit of the Group. The AC also met the External Auditors on two (2) occasions without
the presence of the Executive Directors and the management. At these meetings the AC enquired about the
management cooperation with the External Auditors, access to information in their course of audit and proficiency
in financial reporting. The External Auditors were also invited to raise any matter that is of importance to the AC.

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AUDIT COMMITTEE REPORT

INTERNAL AUDIT

The Group Internal Audit Function that was outsourced to Messrs. Omar Arif & Co. conducted the audit activities
as planned in the Internal Audit Memorandum. Their scope of audit also covers Related Party Transactions
(“RPT”).

On annual basis, the Internal Auditors presented their audit plan to the AC for review and approval. The audit
findings and report are presented to the AC members at all the AC meetings held during the financial year
ended 31 March 2022. Their reports cover the status and progress of their assignments, audit recommendations,
management’s response and the outcome of the procedural review on RPT, follow up audit reports were also
presented to the AC.

The costs incurred in maintaining the outsourced internal audit function for the financial year ended 31 March
2022 is RM51,940.

SUMMARY OF ACTIVITIES

The AC carried out the following activities during the financial year under review:

Financial Reporting and Compliance

• Reviewed quarterly and annual financial reports for the Company and the Group prior to submission to the
Board for consideration and approval, focusing particularly on the following:

(i) significant and unusual events;

(ii) changes in or implementation of major accounting policy; and
(iii) compliance with accounting standards and other legal requirements.

• Reviewed the Group’s quarterly results and year-end financial statements with applicable approved and
new accounting standards issued by the Malaysian Accounting Standards Board and other relevant legal
and regulatory requirements.

• Reviewed the Statement on Risk Management and Internal Control prior to submission to the Board for
consideration and approval for insertion into the Annual Report 2021.

Internal Audit and Risk Management

• Reviewed and assessed the adequacy of the scopes and functions of the Internal Audit Plan and Risk
Management for the Company and the Group and authorised resources to address risk areas that have
been identified.

• Reviewed and assessed the adequacy and effectiveness of the risk management framework and the
appropriateness of Management’s responses to key areas and proposed recommendations for improvements
to be implemented.

• Reviewed the audit report prepared by the Internal Auditors, considered their material findings and assessed
the Management’s responses and action.

• Considered the renewal of Internal Audit engagement.

• During the financial year, the Internal Auditors conducted audit in the areas of Information Technology
Management, Ocean Freight Forwarding & Origin Cargo Management, Procurement, Asset Management
Trucking and Payment.

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AUDIT COMMITTEE REPORT

External Audit

• Reviewed the External Audit Plan for the Company and the Group with the External Auditors to ensure the
audit scope and activities are adequately covered.

• Reviewed the proposed final audit fees for the External Auditors and Internal Auditors in respect of their
audit of the Company and the Group.

• Considered the re-appointment of the External Auditors.

• Met with the External Auditors twice a year without the presence of the executive Board members and the
management.

• Assessed the suitability, performance and independence of the External Auditors in accordance to the
criteria set out in the policy and procedures of the Company.

Related Party Transaction

• Reviewed the related party transactions and ensured that they are not more favourable to the related parties
than those generally available to the public and complies with the LR.

• Reviewed the policies, procedures and processes established for related party transactions.

• Reviewed the Recurrent Related Party Transactions circular and recommended to the Board to seek
shareholders’ approval for renewal of shareholders’ mandate.

OTHER INFORMATION

The Nominating Committee had on 27 January 2022 reviewed the term of office of the AC Members and assessed
the performance of the AC and its Members through an annual Board Committee effectiveness assessment.
The Nominating Committee is satisfied that the AC and its members discharged their functions, duties and
responsibilities in accordance with the AC’s Terms of Reference. The result of the assessment was reported to
the Board and the Board is in concurrence with the Nominating Committee with regard to the performance of the
AC and its Members.

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STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

The Board has overall responsibility for the Group’s system of risk management and internal control and for
reviewing its effectiveness whilst the role of management is to implement the Board’s policies on risk and control.
The system of risk management and internal control is designed to manage and minimise the risk of failure to
achieve business objectives. In pursuing these objectives, internal controls can only provide reasonable and not
absolute assurance against material misstatement or loss.

The adequacy and effectiveness of the Group’s risk management, internal control and governance process are
reviewed and monitored by the Audit Committee, which receives regular reports from the internal auditors. Formal
procedures are in place for actions to be taken to remedy any significant failings or weaknesses in these reports.

The Board has also received assurance from the Group Chief Executive Officer and Chief Financial Officer that
the Group’s risk management and internal control system are operating adequately and effectively in all material
aspect based on the risk management and internal control system of the Group.

Based on the foregoing, the Board is satisfied with the adequacy and effectiveness of the Group’s risk management
and internal control system.

The Group’s system of risk management and internal control does not apply to its joint venture company and
associated company because the Group does not have full management control over them.

The internal control system of the Group has three (3) components as described below. The system has been
put in place for the financial year under review and up to the date of approval of the Annual Report and Financial
Statements.

CONTINUOUS PROCESS

The Board takes cognisance of the continuous process for identifying, evaluating and managing the significant
risks faced by the Group. The key elements of the Group’s internal control system cover the following:

• Organisation structure are properly drawn up according to functions with clear defined delegation of
responsibilities to the Board;
• Regular meetings are held at operational and management levels to identify and resolve business, financial,
operational and management issues;
• 6 branches in the Group, Shah Alam Logistics Centre, Penang Prai Logistics Centre, Port Klang Logistics
Centre, Penang Air Logistics Centre, KLIA Air Logistics Centre and Berjaya Industrial Logistics Centre were
accredited ISO 9001:2015 certification on quality management system. Documented internal procedures and
standard operating procedures have been put in place and surveillance audits are conducted by assessors of
the ISO certification body to ensure that the system is adequately implemented;
• Documented guidelines on operating procedures have been put in place for relevant departments;
• Regular information are provided by the management to the Board on financial performance and key business
indicators;
• Monthly monitoring of results by the management through financial reports;
• Budgeting and forecasting system governed by Group’s policies;
• Regular internal audit visits and other specific assignments, if the need arises, assigned by the Audit
Committee;
• The Audit Committee holds regular meetings with the management on the actions taken on internal control
issues identified through reports prepared by the internal auditors, external auditors and/or management;
• Established the Code of Conduct documenting and communicating the ethical principles and expected
standard of conducts for and to all the personnel within the Group; and
• Implementation of a written Whistle Blowing Policy which set out formal channels through which relevant
matters may be raised by concerned parties.

There are no material losses incurred during the financial year as a result of weaknesses in internal control. The
management will continue to take adequate measures to strengthen the control environment in which the Group
operates.

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 ANNUAL REPORT 2022

STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

INTERNAL AUDIT

The Group has outsourced the Internal Audit Function to an independent professional firm, Messrs Omar Arif
and Co. which reports to the Audit Committee and assists the Board in the monitoring and managing of risks and
internal controls. The Internal Auditor provides an independent, objective assurance and advisory services that
add value and improve the operations by:

• Ensuring the existence of processes to monitor the effectiveness and efficiency of operations and the
achievement of business objectives;
• Ensuring the adequacy and effectiveness of internal control systems for safeguarding of assets and providing
consistent, accurate financial and operational data;
• Promoting risk awareness and the value and nature of an effective internal control system;
• Ensuring compliance with laws, regulations, corporate policies and procedures; and
• Assisting management in accomplishing its objectives by adopting a systematic and disciplined audit approach
to evaluating and improving the effectiveness of risk management, control and governance processes within
the Group’s operations.

The Internal Audit Function focused on high priority activities determined by risk assessment and in accordance
with the audit planning memorandum approved by the Audit Committee.

The Internal Audit Function is free from any relationships or conflicts of interest, which could impair their objectivity
and independence.

RISK MANAGEMENT

The Group seeks to respond to the risks inherent in its business operations through supervisory departments,
which address operating risks in each business division, and through the establishment of internal rules geared to
each risk. The Board has set up Risk Management Committee to underpin an integrated internal control system
appropriate for the entire organisation and continues to enhance risk management practices where necessary by
ascertaining the status of such practices on a regular basis. Activities of Risk Management Committee include:

• Ensuring the Company implements a comprehensive system of risk identification, assessment and
management;
• Forms an integral part of the Group’s structure and design to identify, assess, monitor and manage risks;
• Regularly reviews the risks factors applicable to the Group; and
• Ensuring that procedures, which effectively and efficiently manage these risks within the particular context of
the Group’s business strategy and the environment in which the Group operates, are set in place.

87
 ANNUAL REPORT 2022

ADDITIONAL COMPLIANCE INFORMATION

1. AUDIT FEES AND NON-AUDIT FEES

During the financial year ended 31 March 2022, the amount of audit fees and non-audit fees paid or payable
by the Company and the Group to external auditors are as follows:

Group RM Company RM
Audit Fees RM286,736 RM120,610
Non-Audit Fees RM94,155 RM94,155

2. MATERIAL CONTRACTS INVOLVING DIRECTORS AND SUBSTANTIAL SHAREHOLDERS’ INTEREST

Other than the related party transactions disclosed in the Annual Report, there were no material contracts
entered into by the Group during the year which involved the interests of Directors or substantial shareholders.

3. RECURRENT RELATED PARTY TRANSACTION

The recurrent related party transactions of a revenue or trading nature of the Group conducted pursuant to
the shareholders’ mandate during the financial year ended 31 March 2022 are as follows:

Transacting Interested Aggregate

No. Nature of Transactions
Parties Related Parties Value (RM’000)
1 Various agency agreements entered into TASCO/NYK Mr. Norihiko Sales : 339,723
between TASCO and the respective NYK Group, NYK, Yamada1, NYK Purchases: 265,768
Group’s subsidiaries to act as the handling YLK and YLSG Group3, YLK and YLSG
agents in the respective countries and facilitate
the operations of each other.
2 Various staff secondment agreements entered TASCO/NYK Mr. Norihiko 1,803
into between TASCO and the NYK Group’s Group, NYK, Yamada1, NYK
subsidiaries whereby NYK Group’s subsidiaries YLK and YLSG Group3, YLK and YLSG
agree to second and TASCO agrees to engage
the expatriate who shall be regarded as a
member of TASCO’s staff and shall be subject
to TASCO’s rules and regulations.
3 Software agreement entered into between TASCO/NYK Mr. Norihiko 2,620
TASCO and the NYK Group’s subsidiaries to Group, NYK, Yamada1, NYK
grant TASCO for the use of computer software YLK, YLSG Group3, YLK and YLSG
for its various logistics services.
4 Management service agreements entered TASCO/NYK Mr. Norihiko 11,373
into between TASCO and the NYK Group’s Group, NYK, Yamada1, NYK
subsidiaries for the provision of business YLK, YLSG Group3, YLK and YLSG
development, sales, marketing and related
activities by NYK Group to TASCO.
5 Provision of freight services by NYK Group’s TASCO/NYK Mr. Norihiko 28,556
subsidiaries to TASCO. Group, NYK, Yamada1, NYK
YLK, YLSG Group3, YLK and YLSG

Notes:
1. Mr. Norihiko Yamada was seconded to TASCO from YLK and was appointed as Executive Director on 1 April 2019.
2. NYK denotes Nippon Yusen Kabushiki Kaisha, the ultimate holding company of TASCO.
3. NYK Group denotes NYK’s subsidiary companies and affiliates.

88
 ANNUAL REPORT 2022

CALENDAR OF EVENTS

CALENDAR
OF EVENTS 2021/22
15 SEPTEMBER 2021
▶

Our Company convened the 46th Annual General Meeting on a fully

virtual basis.

27 SEPTEMBER 2021
▶
Launching of Safety Campaign FY 2021

8 OCTOBER 2021
▶
TASCO received the
Certificate of Authorised
Economic Operator (“AEO”)
from Royal Malaysian
Customs Department.

29 DECEMBER 2021
▶

Closure of Warehouse A, B, C & D for handover to Kajima

for demolishment to build a 4-storey warehouse.

21 FEBRUARY 2022
▶

30 JUNE 2022
▶

TASCO was invited by Royal Malaysian Customs Department

Mr Gordon Raison, CEO and Representative Director and Mr Jun-
to attend a ceremony held at Dewan Semarak Jati, Putrajaya to
ichi Miki, Advisor of Roland Corporation visited TASCO
receive the AEO emblem and certificate.

89
FINANCIAL
STATEMENTS
Corporate Information 91

Directors’ Report 92

Independent Auditors’ Report to the Members of TASCO Berhad 97

Consolidated Statement of Financial Position 101

Statement of Financial Position 103

Statements of Comprehensive Income 105

Consolidated Statement of Changes In Equity 106

Statement of Changes In Equity 107

Statements of Cash Flows 108

Notes to the Financial Statements 113

Statement by Directors 177

Statutory Declaration 177

 ANNUAL REPORT 2022

CORPORATE INFORMATION

DOMICILE : Malaysia

LEGAL FORM AND PLACE OF : Public company limited by way of shares incorporated in
INCORPORATION Malaysia under the Companies Act 2016

REGISTERED OFFICE : 802, 8th Floor

Block C, Kelana Square
17 Jalan SS7/26
47301 Petaling Jaya
Selangor Darul Ehsan

PRINCIPAL PLACE OF BUSINESS : Lot No.1A, Persiaran Jubli Perak

Jalan 22/1, Seksyen 22
40300 Shah Alam
Selangor Darul Ehsan

91
 ANNUAL REPORT 2022

DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

The directors have pleasure in submitting their report and the audited financial statements of the Group and of
the Company for the financial year ended 31 March 2022.

PRINCIPAL ACTIVITIES

The Company is principally engaged in the business as an integrated logistics solutions provider. The principal
activities of the subsidiary companies are indicated in note 8 to the financial statements.

There have been no significant changes in the nature of these activities during the financial year.

RESULTS
Group Company
RM RM
Profit for the financial year 67,720,961 58,859,581

Attributable to:
Owners of the Company 65,249,760 58,859,581
Non-controlling interests 2,471,201 -
67,720,961 58,859,581

DIVIDENDS

During the financial year, the Company paid:

• a single-tier dividend of 1.25 sen per ordinary share amounting to RM10,000,000 in respect of financial year
ended 31 March 2021; and

• interim single-tier dividend of 1.00 sen per ordinary share amounting to RM8,000,000 in respect of financial
year ended 31 March 2022.

On 17 May 2022, the directors declared a single-tier dividend of 1.5 sen per ordinary share amounting to
RM12,000,000 in respect of the financial year ended 31 March 2022.

ISSUE OF SHARES AND DEBENTURES

There were no issuance of shares or debentures during the financial year.

SHARE OPTIONS

No option was granted to any person to take up unissued shares of the Company during the financial year.

92
 ANNUAL REPORT 2022

DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

RESERVES AND PROVISIONS

There were no material transfers to or from reserves or provisions during the financial year other than those as
disclosed in the statements of changes in equity set out on pages 106 and 107.

ULTIMATE HOLDING COMPANY

The directors regard Nippon Yusen Kabushiki Kaisha, a company incorporated in Japan and listed on Tokyo
Stock Exchange and Nagoya Stock Exchange, as the ultimate holding company.

DIRECTORS

The directors in office during the year commencing from the beginning of the financial year to the date of this
report are as follows:

Mr Lee Check Poh

Mr Raymond Cha Kar Siang
Mr Kwong Hoi Meng
Mr Raippan s/o Yagappan @ Raiappan Peter
Mr Tan Kim Yong
Mr Lim Jew Kiat
Mr Lee Wan Kai
Datuk Dr Wong Lai Sum
Mr Norihiko Yamada

DIRECTORS OF SUBSIDIARY COMPANIES

The following are directors of the subsidiary companies (excluding directors who are also directors of the
Company) during the financial year until the date of this report:

Encik Haris Fazail Bin Haroon

Encik Shawaludin Bin Dol
Mr Tai Kain Fatt
Mr Rikiya Kanamori

93
 ANNUAL REPORT 2022

DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

DIRECTORS’ INTERESTS IN SHARES

The following directors, who held office at the end of the financial year, had interests in shares in the Company
and its related corporations are as follows:

No. of ordinary shares

At At
The Company 1.4.2021 Bought Sold 31.3.2022

Mr Lee Check Poh - deemed interest(1) 78,643,504 500,000 - 79,143,504

Mr Tan Kim Yong - direct interest 240,000 - - 240,000
Mr Lim Jew Kiat - direct interest 480,000 - - 480,000
Mr Raymond Cha Kar Siang - direct interest 88,000 - - 88,000
Mr Kwong Hoi Meng - direct interest 88,000 - - 88,000
Mr Raippan s/o Yagappan @ Raiappan Peter
- direct interest 88,000 - - 88,000
Mr Lee Wan Kai - direct interest 80,000 - - 80,000

Subsidiary
- Omega Saujana Sdn Bhd

Mr Lee Check Poh
- direct interest 49,000 - - 49,000

Subsidiary
- Piala Kristal (M) Sdn Bhd

Mr Lee Check Poh
- direct interest 49,000 - - 49,000

(1)
Deemed interest by virtue of his equity interest in Real Fortune Portfolio Sdn Bhd.

The other directors in office at the end of financial year, did not have any interest in shares in the Company or its
related corporations during the financial year.

DIRECTORS’ BENEFITS

Neither during nor at the end of the financial year was the Company a party to any arrangements whose object is
to enable the directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures
of, the Company or any other body corporate.

Since the end of the previous financial year, no director of the Company has received or become entitled to
receive any benefit (other than a benefit included in the aggregate amount of remuneration received or due
and receivable by the directors shown in the financial statements or the fixed salary of a full-time employee of
the Company; and other benefits as set out below) by reason of a contract made by the Company or a related
corporation with a director or with a firm of which the director is a member, or with a company in which the director
has a substantial financial interest.

Directors’ remuneration and other benefits are as follows:

Company
RM
Directors’ fee 204,000
Other emoluments 5,012,623
Contribution to post-employment benefits 568,874

94
 ANNUAL REPORT 2022

DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

INDEMNITY

During the financial year, the total amount of indemnity coverage and insurance premium paid for the directors
and officers of the Company are RM5,000,000 and RM12,000 respectively.

OTHER INFORMATION

Before the financial statements of the Group and of the Company were made out, the directors took reasonable
steps:

(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of
allowance for doubtful debts, and satisfied themselves that there were no known bad debts to be written off
and adequate allowance had been made for doubtful debts; and

(ii) to ensure that any current assets which were unlikely be realised in the ordinary course of business including
their values of current assets as shown in the accounting records have been written down to an amount
which the current assets might be expected so to realise.

At the date of this report, the directors are not aware of any circumstances:

(i) which would render it necessary to write off any bad debt or the amount of allowance for doubtful debts in
the financial statements of the Group and of the Company inadequate to any substantial extent; or

(ii) which would render the values attributed to the current assets in the financial statements of the Group and
of the Company misleading; or

(iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the
Group and of the Company misleading or inappropriate.

At the date of this report, there does not exist:

(i) any charge on the assets of the Group or of the Company which has arisen since the end of the financial
year which secures the liabilities of any other person; or

(ii) any contingent liability of the Group and of the Company which has arisen since the end of the financial year.

No contingent or other liability has become enforceable, or is likely to become enforceable, within the period of
twelve months after the end of the financial year which, in the opinion of the directors, will or may affect the ability
of the Group or of the Company to meet their obligations as and when they fall due.

At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or
the financial statements of the Group and of the Company which would render any amount stated in the financial
statements misleading.

In the opinion of the directors:

(i) the results of the operations of the Group and of the Company during the financial year were not substantially
affected by any item, transaction or event of a material and unusual nature; and

(ii) there has not arisen in the interval between the end of the financial year and the date of this report any
item, transaction or event of a material and unusual nature likely to affect substantially the results of the
operations of the Group and of the Company for the financial year in which this report is made.

95
 ANNUAL REPORT 2022

DIRECTORS’ REPORT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

SIGNIFICANT EVENTS

Details of significant events are disclosed in note 43 to the financial statements.

AUDITORS

Auditors’ remuneration is set out in note 29 to the financial statements.

The auditors, Mazars PLT, Chartered Accountants, have expressed their willingness to accept re-appointment.

To the extent permitted by laws, the Company has agreed to indemnify its auditors, as part of the terms of its
audit engagement, against claims arising from the audit. No payment has been made to indemnify the auditors
for the current financial period.

APPROVAL OF THE DIRECTORS’ REPORT

This report is approved by the board of directors, and signed on behalf of the board of directors in accordance
with a directors’ resolution.

LEE CHECK POH LEE WAN KAI

Director Director

Kuala Lumpur

Date: 27 May 2022

96
 ANNUAL REPORT 2022

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF TASCO BERHAD

(INCOPORATED IN MALAYSIA)

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of TASCO Berhad, which comprise the statements of financial position
as at 31 March 2022 of the Group and of the Company, and the statements of comprehensive income, statements
of changes in equity and statements of cash flows of the Group and of the Company for the financial year then
ended, and notes to the financial statements, including a summary of significant accounting policies, as set out
on pages 101 to 176.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the
Group and of the Company as at 31 March 2022, and of their financial performance and their cash flows for the
financial year then ended in accordance with Malaysian Financial Reporting Standards, International Financial
Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.

Basis for Opinion

We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards
on Auditing. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for
the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.

Independence and Other Ethical Responsibilities

We are independent of the Group and of the Company in accordance with the By-Laws (on Professional
Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in
accordance with the By-Laws and the IESBA Code.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial statements of the Group and of the Company for the current financial year. These matters were
addressed in the context of our audit of the financial statements of the Group and of the Company as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

(a) Impairment of goodwill

The risk:

As at 31 March 2022, the Group had goodwill of RM81,864,054 arising from the acquisition of Gold Cold
Transport Sdn Bhd (“GCT”) in previous years, which represented 6% of the Group’s total assets. Goodwill
is allocated to the cold chain business of GCT which represents the cash generating unit (“CGU”) for
impairment testing purposes. Recoverable amount of CGU is determined using the value-in-use method.

Refer to notes 3(i), 4(f)(a) and 7 to the financial statements.

We focus on this area as the assessment of recoverable amount of the CGU involved the use of significant
accounting estimates and assumptions in arriving at the discounted cash flow projection using value-in-use
method. Therefore, impairment testing of goodwill is considered as a key audit matter.

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 ANNUAL REPORT 2022

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF TASCO BERHAD

(INCOPORATED IN MALAYSIA)

How the matter was addressed in our audit:

To address the matter identified, we evaluated the cash flow projection by assessing the reasonableness of
the key assumptions such as forecasted revenue growth rates applied by management and our understanding
of the historical performance of GCT and available economic data. With the support of our internal specialist,
we assessed the appropriateness of the discount rate used in determining the recoverable amounts of the
CGU by comparing to market sources. We tested the sensitivity of the cash flow projection to evaluate the
corresponding effect on the recoverable amount due to the possible changes in the key assumptions.

(b) Revenue recognition

The risk:

The revenue of the Group and of the Company for the financial year ended 31 March 2022 amounted to
RM1,481,412,546 and RM1,341,817,563 respectively.

The Group and the Company are involved in the operation of integrated logistics solutions provider. We have
identified revenue recognition as a key audit matter, particularly in respect of the occurrence of services
rendered and the appropriateness of the timing of revenue recognition with transactions occurring on or
near financial year-end. Some of the revenue streams of the Group and of the Company depict recognition
of revenue over time, based on the progress towards the completion of each performance obligation at the
reporting date.

Due to the significant volume of above transactions, there is a risk that revenue could be recognised in the
incorrect period for transactions occurring near or at the financial year end.

The Group’s and the Company’s disclosures about revenue recognition are included in notes 4(i), 27 and
42 to the financial statements.
 
How the matter was addressed in our audit:

To address the matters identified, we assessed the design and the implementation of the Group’s and of
the Company’s key controls over revenue recognition and tested the operating effectiveness of identified
controls. We evaluated the compliance of the revenue recognition criteria in accordance with accounting
standard and reviewed the quantification of cut off adjustments made to the financial statements. We also
tested revenue transactions by inspecting source documents using sampling techniques. The procedures
covered testing the occurrence and timing of recording individual transactions. For transactions close to
the period end, we tested the cut-off procedures on sampling basis and reviewed credit notes issued to
customers after financial year end to ascertain whether revenue is recognised in the correct period.

Information Other than the Financial Statements and Auditors’ Report Thereon

The directors of the Company are responsible for the other information. The other information comprises
Directors’ Report, Audit Committee Report, Corporate Governance Overview Statement and Statement on Risk
Management and Internal Control, which we obtained prior to the date of this auditors’ report, however, other
information to be included in the Annual Report, are expected to be made available to us after that date.

Other information does not include the financial statements of the Group and of the Company and our auditors’
report thereon.

Our opinion on the financial statements of the Group and of the Company does not cover the other information
and we do not express any form of assurance conclusion thereon.

98
 ANNUAL REPORT 2022

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF TASCO BERHAD

(INCOPORATED IN MALAYSIA)

In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to
read the other information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise
appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this
auditors’ report, 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 the Directors for the Financial Statements

The directors of the Company are responsible for the preparation of financial statements of the Group and of the
Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International
Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The directors are
also responsible for such internal control as the directors determine is necessary to enable the preparation of
financial statements of the Group and of the Company that are free from material misstatement, whether due to
fraud or error.

In preparing the financial statements of the Group and of the Company, the directors are responsible for assessing
the Group’s and the Company’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 the directors either intend to liquidate
the Group or the Company or to cease operations, or have no realistic alternative but to do so.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the
Company as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards
on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards
on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We
also:

• Identify and assess the risks of material misstatement of the financial statements of the Group and of the
Company, whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Group’s and the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.

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 ANNUAL REPORT 2022

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF TASCO BERHAD

(INCOPORATED IN MALAYSIA)

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s or the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the
related disclosures in the financial statements of the Group and of the Company or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditors’ report. However, future events or conditions may cause the Group or the Company to cease
to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements of the Group and of the
Company, including the disclosures, and whether the financial statements of the Group and of the Company
represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial statements of the Group. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial statements of the Group and of the Company for the current financial year and
are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.

Other Matter

This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the
Companies Act 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person
for the content of this report.

MAZARS PLT CHONG FAH YOW

201706000496 (LLP0010622-LCA) 03004/07/2022 J
AF 001954 Chartered Accountant
Chartered Accountants

Kuala Lumpur

Date: 27 May 2022

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 ANNUAL REPORT 2022

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2022

Note 2022 2021

RM RM
ASSETS

Non-current assets
Property, plant and equipment 5 518,088,841 515,401,863
Right-of-use assets 6 26,510,622 19,524,288
Goodwill 7 81,864,054 81,864,054
Investment in associated company 9 3,562,279 3,196,691
Investments in joint ventures 10 14,107,444 3,432,220
Other assets 961,704 924,204
Deferred tax assets 11 323,932 6,998
Total non-current assets 645,418,876 624,350,318

Current assets
Contract assets 13 211,879,361 -
Trade receivables 14 338,779,725 169,446,656
Other receivables, deposits and prepayments 15 25,391,377 20,784,835
Amount owing by immediate holding company 16 12,841,554 6,761,282
Amounts owing by related companies 17 50,672,916 22,312,990
Amount owing by associated company 9 50,000 50,000
Amount owing by a joint venture 10 16,219 447,272
Current tax assets 554,067 497,096
Short term investments 18 - 5,438,139
Fixed deposits with licenced banks 19 - 33,104,986
Cash and bank balances 20 87,462,082 77,832,946
Total current assets 727,647,301 336,676,202
TOTAL ASSETS 1,373,066,177 961,026,520

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 ANNUAL REPORT 2022

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2022

Note 2022 2021

RM RM
EQUITY AND LIABILITIES

Equity
Share capital 21 100,801,317 100,801,317
Revaluation reserve 1,400,591 1,400,591
Fair value reserve (64,999) (64,999)
Retained earnings 414,712,891 367,463,131
Equity attributable to owners of the Company 516,849,800 469,600,040
Non-controlling interests 68,093,161 66,971,960
Total equity 584,942,961 536,572,000

Non-current liabilities
Amount owing to corporate shareholder of subsidiary company 22 4,201,172 4,573,172
Lease liabilities 6 12,177,574 10,704,697
Hire purchase payables 23 1,221,249 -
Bank term loans 24 147,003,677 216,601,250
Deferred tax liabilities 11 22,595,280 22,882,200
Total non-current liabilities 187,198,952 254,761,319

Current liabilities
Contract liabilities 13 1,660,749 -
Trade payables 25 421,773,704 65,669,077
Other payables, deposits and accruals 26 60,077,746 42,218,317
Amount owing to immediate holding company 16 3,069,756 2,663,082
Amounts owing to related companies 17 21,891,707 16,501,689
Amount owing to associated company 9 940,500 -
Amount owing to corporate shareholder of subsidiary company 22 470,510 478,523
Lease liabilities 6 16,375,561 9,017,240
Hire purchase payables 23 735,859 -
Bank term loans 24 70,708,064 29,874,727
Current tax liabilities 3,220,108 3,270,546
Total current liabilities 600,924,264 169,693,201
Total liabilities 788,123,216 424,454,520
TOTAL EQUITY AND LIABILITIES 1,373,066,177 961,026,520

The accompanying notes form an integral part of the financial statements

102
 ANNUAL REPORT 2022

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2022

Note 2022 2021

RM RM
ASSETS

Non-current assets
Property, plant and equipment 5 296,346,445 290,674,347
Right-of-use assets 6 10,599,537 15,784,123
Investments in subsidiary companies 8 107,689,939 107,689,939
Investment in associated company 9 3,000,000 3,000,000
Investment in a joint venture 10 2,800,000 3,480,000
Amounts owing by subsidiary companies 12 22,804,259 24,200,330
Other assets 924,204 924,204
Total non-current assets 444,164,384 445,752,943

Current assets
Trade receivables 14 200,524,796 137,310,182
Other receivables, deposits and prepayments 15 14,643,649 15,094,668
Amount owing by immediate holding company 16 12,841,554 6,761,282
Amounts owing by subsidiary companies 12 31,838,563 31,749,195
Amounts owing by related companies 17 50,672,916 22,312,990
Amount owing by associated company 9 50,000 50,000
Amount owing by a joint venture 10 619 132,837
Fixed deposits with licensed banks 19 - 29,300,000
Cash and bank balances 20 41,266,372 50,690,706
Total current assets 351,838,469 293,401,860
TOTAL ASSETS 796,002,853 739,154,803

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 ANNUAL REPORT 2022

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2022

Note 2022 2021

RM RM
EQUITY AND LIABILITIES

Equity
Share capital 21 100,801,317 100,801,317
Fair value reserve (64,999) (64,999)
Retained earnings 278,335,069 237,475,488
Total equity 379,071,387 338,211,806

Non-current liabilities
Lease liabilities 6 3,294,156 8,861,587
Bank term loans 24 122,933,341 188,233,340
Deferred tax liability 11 10,184,149 9,476,919
Total non-current liabilities 136,411,646 206,571,846

Current liabilities
Trade payables 25 75,976,316 56,855,587
Other payables, deposits and accruals 26 46,543,866 31,799,816
Amount owing to immediate holding company 16 3,069,756 2,663,082
Amounts owing to subsidiary companies 12 56,345,778 51,986,778
Amounts owing to related companies 17 21,891,707 16,501,689
Amount owing to associated company 9 940,500 -
Lease liabilities 6 7,579,015 7,018,319
Bank term loans 24 65,300,000 24,466,663
Current tax liability 2,872,882 3,079,217
Total current liabilities 280,519,820 194,371,151
Total liabilities 416,931,466 400,942,997
TOTAL EQUITY AND LIABILITIES 796,002,853 739,154,803

The accompanying notes form an integral part of the financial statements

104
 ANNUAL REPORT 2022

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

Group Company
Note 2022 2021 2022 2021
RM RM RM RM

Revenue 27 1,481,412,546 946,612,167 1,341,817,563 820,553,792

Cost of sales (1,277,471,655) (795,446,580) (1,164,246,164) (694,491,547)
Gross profit 203,940,891 151,165,587 177,571,399 126,062,245
Other income 28 4,683,590 4,447,915 6,461,463 2,998,374
Administrative and general expenses (108,453,003) (80,819,116) (97,634,440) (69,088,022)
Profit from operations 29 100,171,478 74,794,386 86,398,422 59,972,597
Finance costs 30 (13,195,827) (14,396,928) (10,954,157) (12,667,175)
Share of results of associated company
and joint ventures 1,170,812 291,946 - -
Profit before tax 88,146,463 60,689,404 75,444,265 47,305,422
Tax expense 31 (20,425,502) (17,020,092) (16,584,684) (13,838,508)
Profit for the financial year 67,720,961 43,669,312 58,859,581 33,466,914

Other comprehensive income:

Items that will be reclassified
subsequently to profit or loss:

Exchange difference on translation

of foreign operation - 643,844 - -
Other comprehensive income
for the financial year, net of tax - 643,844 - -
Total comprehensive income for
the financial year 67,720,961 44,313,156 58,859,581 33,466,914

Profit attributable to:

Owners of the Company 65,249,760 41,273,994 58,859,581 33,466,914
Non-controlling interests 2,471,201 2,395,31 - -
Profit for the financial year 67,720,961 43,669,312 58,859,581 33,466,914

Total comprehensive income attributable to:

Owners of the Company 65,249,760 41,917,838 58,859,581 33,466,914
Non-controlling interests 2,471,201 2,395,318 - -
Total comprehensive income for
the financial year 67,720,961 44,313,156 58,859,581 33,466,914

Basic earnings per share attributable to

owners of the Company (sen per share) 32 8.16 5.16

The accompanying notes form an integral part of the financial statements

105
106
Attributable to owners of the Company
Non distributable Distributable
Exchange Non-
Share Revaluation translation Fair value Retained controlling Total
Note capital reserve reserve reserve earnings Total interests equity
RM RM RM RM RM RM RM RM
Group
ANNUAL REPORT 2022

Balance at 1 April 2020 100,801,317 1,400,591 (643,844) (64,999) 334,189,137 435,682,202 64,576,642 500,258,844
Total comprehensive income
for the financial year - - 643,844 - 41,273,994 41,917,838 2,395,318 44,313,156
Dividends paid 33 - - - - (8,000,000) (8,000,000) - (8,000,000)
Balance at 31 March 2021 100,801,317 1,400,591 - (64,999) 367,463,131 469,600,040 66,971,960 536,572,000
Total comprehensive income
for the financial year - - - - 65,249,760 65,249,760 2,471,201 67,720,961
Dividends paid 33 - - - - (18,000,000) (18,000,000) - (18,000,000)
Dividends paid to non-controlling
interest of a subsidiary company - - - - - - (1,350,000) (1,350,000)
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

Balance at 31 March 2022 100,801,317 1,400,591 - (64,999) 414,712,891 516,849,800 68,093,161 584,942,961
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

The accompanying notes form an integral part of the financial statements

 ANNUAL REPORT 2022

STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

Non distributable Distributable

Share Fair value Retained Total

Note capital reserve earnings equity
RM RM RM RM
Company

Balance at 1 April 2020 100,801,317 (64,999) 212,008,574 312,744,892
Total comprehensive income
for the financial year - - 33,466,914 33,466,914
Dividends paid 33 - - (8,000,000) (8,000,000)
Balance at 31 March 2021 100,801,317 (64,999) 237,475,488 338,211,806
Total comprehensive income
for the financial year - - 58,859,581 58,859,581
Dividends paid 33 - - (18,000,000) (18,000,000)
Balance at 31 March 2022 100,801,317 (64,999) 278,335,069 379,071,387

The accompanying notes form an integral part of the financial statements

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 ANNUAL REPORT 2022

STATEMENTS OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

Group Company
2022 2021 2022 2021
RM RM RM RM
CASH FLOWS FROM OPERATING
ACTIVITIES

Profit before tax 88,146,463 60,689,404 75,444,265 47,305,422

Adjustments for:
Allowance for doubtful debts 425,210 362,401 388,198 325,198
Bad debts written off - 147,213 - 147,213
Depreciation of property,
plant and equipment 28,956,092 28,441,764 17,151,604 16,730,551
Depreciation of right-of-use assets 16,242,926 11,071,947 8,059,353 9,266,469
Gain on disposal of property,
plant and equipment (1,167,713) (809,323) (985,084) (281,771)
Gain on early termination of lease contracts (31,894) (3,835) (21,904) -
Fair value gain on short term investments (69,206) (108,626) - -
Property, plant and equipment written off 16,025,123 194,208 16,025,123 194,207
Other investment written off - 18,000 - 18,000
Loss on disposal of other assets - 42,000 - 42,000
Share of results of associated company
and joint ventures (1,170,812) (291,946) - -
Interest income (831,691) (1,201,064) (1,442,617) (1,348,755)
Dividend income (36,600) (36,600) (3,186,600) (36,600)
Interest expense 13,195,827 14,396,928 10,954,157 12,667,175
Loss on derecognition of subsidiary - 824,860 - -
Unrealised loss on foreign exchange 744,720 2,404,500 744,720 2,404,500
Operating profit before working
capital changes 160,428,445 116,141,831 123,131,215 87,433,609
Changes in receivables (418,079,141) (75,654,699) (95,181,844) (69,860,356)
Changes in payables 380,449,883 44,479,662 38,621,028 38,524,324
Cash generated from operations 122,799,187 84,966,794 66,570,399 56,097,577
Interest received - 952,139 - 550,070
Tax paid (21,136,765) (13,636,579) (16,083,789) (9,997,500)
Net cash generated from operating activities 101,662,422 72,282,354 50,486,610 46,650,147

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 ANNUAL REPORT 2022

STATEMENTS OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

Group Company
Note 2022 2021 2022 2021
RM RM RM RM
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment 34 (46,787,368) (41,100,888) (37,007,040) (12,199,240)

Proceeds from disposal of property,
plant and equipment 1,627,890 989,152 1,427,199 410,075
Proceeds from disposal of other assets - 24,000 - 24,000
Repayment from a joint venture 680,000 - 680,000 -
(Advances to)/Repayment from
subsidiary companies - - (1,222,619) 53,593,835
Interest received 831,691 248,925 1,461,765 819,242
Dividends received 36,600 36,600 3,186,600 36,600
Acquisition of joint venture (10,550,000) - - -
Acquisition of other investment (37,500) - - -
Redemption of short term investments 5,507,345 - - -
Net cash outflow on derecognition
of subsidiary 8 - (44,992) - -
Net cash (used in)/generated from
investing activities (48,691,342) (39,847,203) (31,474,095) 42,684,512

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of term loans (28,764,236) (76,874,901) (24,466,662) (72,766,664)

Repayment of hire purchase payables (309,007) (228,658) - -
Repayment of lease liabilities (14,366,168) (11,114,647) (7,859,598) (9,341,864)
Advances from/(Repayment to)
subsidiary companies - - 3,625,247 (9,792,283)
Repayment to corporate shareholder
of a subsidiary company (372,000) (372,000) - -
Interest paid (13,203,840) (14,405,737) (10,954,157) (12,667,175)
Dividends paid (18,000,000) (8,000,000) (18,000,000) (8,000,000)
Dividend paid to non-controlling
interest of a subsidiary company (1,350,000) - - -
Net cash used in financing activities (76,365,251) (110,995,943) (57,655,170) (112,567,986)

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 ANNUAL REPORT 2022

STATEMENTS OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

Group Company
2022 2021 2022 2021
RM RM RM RM
NET DECREASE IN CASH AND
CASH EQUIVALENTS (23,394,171) (78,560,792) (38,642,655) (23,233,327)

CASH AND CASH EQUIVALENTS

BROUGHT FORWARD 110,937,932 191,781,451 79,990,706 105,506,760

EFFECT OF EXCHANGE RATE CHANGES (81,679) (2,282,727) (81,679) (2,282,727)

CASH AND CASH EQUIVALENTS
CARRIED FORWARD 87,462,082 110,937,932 41,266,372 79,990,706

Represented by:

Fixed deposits with licensed banks - 33,104,986 - 29,300,000

Cash and bank balances 87,462,082 77,832,946 41,266,372 50,690,706
87,462,082 110,937,932 41,266,372 79,990,706

Note (a):

Reconciliation of liabilities arising from financing activities

Amounts
owing to
corporate
shareholder
Hire purchase Lease of subsidiary
2022 Term loans payables liabilities company Total
Group RM RM RM RM RM
At beginning of financial year 246,475,977 - 19,721,937 5,051,695 271,249,609

Cash flows:
Repayment of term loans (28,764,236) - - - (28,764,236)
Repayment of hire purchase
payables - (309,007) - - (309,007)
Repayment of lease liabilities - - (14,366,168) - (14,366,168)
Repayment to corporate
shareholder of subsidiary
company - - - (372,000) (372,000)
Interest paid (11,571,426) (42,155) (1,325,372) (264,887) (13,203,840)

Non-cash changes:
Interest expenses 11,571,426 42,155 1,325,372 256,874 13,195,827
Termination of lease contracts - - (924,797) - (924,797)
Additions of lease liabilities - - 24,122,163 - 24,122,163
Acquisition of property, plant
and equipment - 2,266,115 - - 2,266,115
At end of financial year 217,711,741 1,957,108 28,553,135 4,671,682 252,893,666

The accompanying notes form an integral part of the financial statements

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 ANNUAL REPORT 2022

STATEMENTS OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

Note (a):

Reconciliation of liabilities arising from financing activities (Cont’d)

Amounts
owing to
corporate
shareholder
Hire purchase Lease of subsidiary
2021 Term loans payables liabilities company Total
Group RM RM RM RM RM
At beginning of financial year 323,350,878 228,658 13,320,281 5,432,504 342,332,321

Cash flows:
Repayment of term loans (76,874,901) - - - (76,874,901)
Repayment of hire purchase
payables - (228,658) - - (228,658)
Repayment of lease liabilities - - (11,114,647) - (11,114,647)
Repayment to corporate
shareholder of subsidiary
company - - - (372,000) (372,000)
Interest paid (13,609,057) (5,033) (505,653) (285,994) (14,405,737)

Non-cash changes:
Interest expenses 13,609,057 5,033 505,653 277,185 14,396,928
Termination of lease contracts - - (162,708) - (162,708)
Additions of lease liabilities - - 17,679,011 - 17,679,011
At end of financial year 246,475,977 - 19,721,937 5,051,695 271,249,609

Amounts to
owing
subsidiary Lease
2022 Term loans companies liabilities Total
Company RM RM RM RM
At beginning of financial year 212,700,003 38,301,070 15,879,906 266,880,979

Cash flows:
Repayment of term loans (24,466,662) - - (24,466,662)
Advances from subsidiary companies - 3,625,247 - 3,625,247
Repayment of lease liabilities - - (7,859,598) (7,859,598)
Interest paid (10,460,936) - (493,221) (10,954,157)

Non-cash changes:
Interest expenses 10,460,936 - 493,221 10,954,157
Termination of lease contracts - - (502,689) (502,689)
Additions of lease liabilities - - 3,355,552 3,355,552
At end of financial year 188,233,341 41,926,317 10,873,171 241,032,829

The accompanying notes form an integral part of the financial statements

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 ANNUAL REPORT 2022

STATEMENTS OF CASH FLOWS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

Note (a):

Reconciliation of liabilities arising from financing activities (Cont’d)

Amounts to
owing
subsidiary Lease
2021 Term loans companies liabilities Total
Company RM RM RM RM
At beginning of financial year 285,466,667 48,093,353 7,917,406 341,477,426

Cash flows:
Repayment of term loans (72,766,664) - - (72,766,664)
Repayment to subsidiary companies - (9,792,283) - (9,792,283)
Repayment of lease liabilities - - (9,341,864) (9,341,864)
Interest paid (12,306,640) - (360,535) (12,667,175)

Non-cash changes:
Interest expenses 12,306,640 - 360,535 12,667,175
Additions of lease liabilities - - 17,304,364 17,304,364
At end of financial year 212,700,003 38,301,070 15,879,906 266,880,979

The accompanying notes form an integral part of the financial statements

112
 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

1. GENERAL INFORMATION

The Company is a public limited liability company incorporated and domiciled in Malaysia. The Company
is listed on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Malaysia”). The addresses of the
principal place of business and registered office of the Company are disclosed on page 91.

The immediate and ultimate holding companies are Yusen Logistics Co., Ltd, a company incorporated in
Japan and Nippon Yusen Kabushiki Kaisha, a company incorporated in Japan and listed on Tokyo Stock
Exchange and Nagoya Stock Exchange.

The Company is principally engaged in the business as an integrated logistics solutions provider. The
principal activities of the subsidiary companies are indicated in note 8 to the financial statements.

There have been no significant changes in the nature of these activities during the financial year.

2. BASIS OF PREPARATION

The financial statements of the Group and of the Company have been prepared in accordance with Malaysian
Financial Reporting Standards (“MFRS”) issued by the Malaysian Accounting Standards Board (“MASB”),
International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.

The financial statements are presented in Ringgit Malaysia (“RM”), which is also the Company’s functional
currency.

The measurement bases applied in the preparation of the financial statements include historical cost,
recoverable value, realisable value and fair value. Estimates are used in measuring these values.

(a) Application of new and revised standards

In the current financial year, the Group and the Company have applied a number of amendments that
become effective mandatorily for the financial periods beginning on or after 1 April 2021.

The adoption of the amendments does not have significant impact on the financial statements of the
Group and of the Company.

(b) New or amended standards issued that are not yet effective

The Group and the Company have not applied the following new standard and amendments that have
been issued by the MASB but are not yet effective:

Effective for
financial
periods
beginning
on or after

Amendments to MFRS 1, Annual Improvements to MFRS Standards 2018−2020 1 January 2022

MFRS 9, MFRS 16 and
MFRS 141
Amendments to MFRS 3 Reference to the Conceptual Framework 1 January 2022
Amendments to MFRS 116 Property, Plant and Equipment − Proceeds before 1 January 2022
Intended Use
Amendments to MFRS 137 Onerous Contracts−Cost of Fulfilling a Contract 1 January 2022
MFRS 17 Insurance Contracts 1 January 2023

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

2. BASIS OF PREPARATION (CONT’D)

(b) New or amended standards issued that are not yet effective (Cont’d)

The Group and the Company have not applied the following new standard and amendments that have
been issued by the MASB but are not yet effective: (Cont’d):

Effective for
financial
periods
beginning
on or after

Amendment to MFRS 17 Initial Application of MFRS 17 and MFRS 9 1 January 2023

– Comparative Information
Amendments to MFRS 101 Classification of Liabilities as Current or Non-current 1 January 2023
Amendments to MFRS 101 Disclosure of Accounting Policies 1 January 2023
Amendments to MFRS 108 Definition of Accounting Estimates 1 January 2023
Amendments to MFRS 112 Deferred Tax related to Assets and Liabilities arising 1 January 2023
from a Single Transaction
Amendments to MFRS 10 Sale or Contribution of Assets between an Investor To be
and MFRS 128 and its Associate or Joint Venture announced
by the MASB

The adoption of the above new standard and amendments are not expected to have significant impact
on the financial position and financial performance of the Group and of the Company.

3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

The preparation of financial statements in conformity with MFRS requires management to exercise
judgement in the process of applying the accounting policies. It also requires the use of accounting
estimates and assumptions that affect reported amounts of asset and liabilities and disclosures of
contingent assets and liabilities at the reporting date, and reported amounts of income and expenses
during the financial year.

Although these estimates are based on management’s best knowledge of current events and actions,
historical experiences and various other factors, including expectations for future events that are
believed to be reasonable under the circumstances, actual results may ultimately differ from these
estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised and in any future periods
affected.

Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources associated with estimation uncertainty
at the reporting date that have significant risks of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are discussed below:

(i) Impairment of goodwill

The Group reviews whether goodwill is impairment at least on an annual basis or on a more frequent
basis if events or changes in circumstances indicate that the carrying amount may be impaired.

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (CONT’D)

Key sources of estimation uncertainty (Cont’d)

(i) Impairment of goodwill (Cont’d)

For the purpose of impairment testing, goodwill is allocated to the Group’s cash generating unit (“CGU”)
that is expected to benefit from synergies of the business combination.

The recoverable amount of the CGU is determined using the value-in-use method which requires
significant management estimations. Changes in the assumptions used by the management in assessing
the impairment could materially affect the net present value of the goodwill and may result in recognition
of impairment loss.

The carrying amount of goodwill as at 31 March 2022 is disclosed in note 7 to the financial statements.

(ii) Impairment of trade receivables and contract assets

Management assesses the expected credit losses (“ECL”) for trade receivables and contract assets at
each reporting date. Credit losses are the difference between the contractual cash flows that are due
to the entity and the cash flows that it actually expects to receive. Management applies the simplified
approach of MFRS 9 Financial Instruments in assessing the ECL for trade receivables and contract
assets.

In determining the ECL, management uses the historical credit loss experience for trade receivables
and contract assets to estimate the ECL. Management is not only required to consider historical
information that is adjusted to reflect the effects of current conditions and information that provides
objective evidence that trade receivables and contract assets are impaired in relation to incurred
losses, but management also considers, when applicable, reasonable and supportable information
that may include forecasts of future economic conditions when estimating the ECL, on an individual
and collective basis. The need to consider forward-looking information means that management
exercises considerable judgement as to how changes in macroeconomic factors, including the impact
of Covid-19 outbreak, will affect the ECL on trade receivables and contract assets.

The ECL on trade receivables and contract assets as at current reporting date are primarily based
upon the recent credit loss circumstances and foreseeable Covid-19 related impact on the industry
and the country’s economics.

The carrying amounts of trade receivables and contract assets are disclosed in note 40 to the financial
statements.

(iii) Depreciation of property, plant and equipment

Property, plant and equipment are depreciated on a straight-line basis to write off their costs to their
residual values over their estimated useful lives. Management estimates the useful life of these assets
to be from 5 to 99 years.

Changes in the expected level of usage, physical wear and tear and technological development could
impact the economic useful lives and residual values of these assets, and therefore future depreciation
charges could be revised.

The carrying amounts of the Group’s and Company’s property, plant and equipment, as at 31 March
2022 are disclosed in note 5 to the financial statements.

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (CONT’D)

Key sources of estimation uncertainty (Cont’d)

(iv) Income taxes

Significant judgement is involved in determining the capital allowances and deductibility of certain
expenses during the estimation of the provision for income tax. There are certain transactions and
computations for which the ultimate tax determination is uncertain during the ordinary course of business.

The Group and the Company recognise liabilities for expected tax issues based on estimates of whether
additional taxes will be due. Where the final tax outcome of these matters is different from the amounts
that were initially recognised, such differences will impact the tax expense and deferred tax liabilities in
the period in which such determination is made.

The carrying amounts of the Group’s and Company’s tax assets as at 31 March 2022 were RM877,999
and nil (2021: RM504,094 and nil) respectively.

The carrying amounts of the Group’s and Company’s tax liabilities as at 31 March 2022 were
RM25,815,388 and RM13,057,031 (2021: RM26,152,746 and RM12,556,136) respectively.

(v) Lease liability

Management estimates the lease term as the non-cancellable period of a lease together with both
periods covered by an option to extend the lease and an option to terminate the lease. In assessing
whether it is reasonably certain to exercise an option to extend a lease, or not to exercise an option
to terminate a lease, management exercises judgement by considering all relevant facts and
circumstances that create an economic incentive to exercise the option to extend the lease, or not to
exercise the option to terminate the lease.

Management measures the lease liability as the present value of the lease payments that are not paid
at commencement date. The lease payments are discounted using the incremental borrowing rate.

The lease terms and discount rate are determined using certain assumptions and they represents
management’s best estimation. The assumptions on which it is based relate to the future. Actual
outcome may be different from the estimation and the variation could be material.

The carrying amounts of lease liabilities are disclosed in note 6 to the financial statements.

4. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and of all
its subsidiaries and entities controlled by the Company (including structured entities) made up to the
end of the financial year.

The Company controls an investee if and only if the Company has all the following:

(i) power over the investee;

(ii) exposure, or rights, to variable returns from its involvement with the investee; and

(iii) the ability to use its power over the investee to affect the amount of the investor’s returns.

Potential voting rights are considered when assessing control only if the rights are substantive.

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(a) Basis of consolidation (Cont’d)

The Company reassesses whether it controls an investee if facts and circumstances indicate that there
are changes to one or more of the three elements of control.

Consolidation of an investee shall begin from the date the Company obtains control of the investee and
cease when the Company loses control of the investee.

The consolidated financial statements are prepared using uniform accounting policies for like
transactions and other events in similar circumstances.

All intra-group balances, transactions, income and expenses are eliminated in full on consolidation and
the consolidated financial statements reflect external transactions only.

The Company attributes the profit or loss and each component of other comprehensive income to
the owners of the Company and to the non-controlling interests. The Company also attributes total
comprehensive income to the owners of the Company and to the non-controlling interests even if this
results in the non-controlling interests having a deficit balance.

Changes of interests in subsidiaries

The changes of interests in subsidiaries that do not result in a loss of control are treated as equity
transactions between the Group and non-controlling interests. Any gain or loss arising from equity
transaction is recognised directly in equity.

Loss of control

When the Company loses control of a subsidiary:

(i) It derecognises the assets and liabilities, non-controlling interests, and other amounts previously
recognised in other comprehensive income relating to the former subsidiary.

(ii) It recognises any gain or loss in profit or loss attributable to the Group, which is calculated as the
difference between:

(a) the aggregate of the fair value of the consideration received, if any, from the transaction,
event or circumstances that resulted in the loss of control; plus any investment retained in
the former subsidiary at its fair value at the date when control is lost; and

(b) the net carrying amount of assets, liabilities, goodwill and any non-controlling interests
attributable to the former subsidiary at the date when control is lost.

(iii) It recognises any investment retained in the former subsidiary at its fair value when control is
lost. That fair value shall be regarded as the fair value on initial recognition of a financial asset in
accordance with MFRS 9 or, when appropriate, the cost on initial recognition of an investment in
an associate or joint venture.

(b) Business combination

The Group accounts for each business combination by applying the acquisition method.

The consideration transferred in a business combination shall be measured at fair value, which shall
be calculated as the sum of the acquisition date fair values of the assets transferred by the Group, the
liabilities assumed by the Group and the equity interests issued by the Group at the date of exchange.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(b) Business combination (Cont’d)

The Group accounts for acquisition related costs as expenses in the period in which the costs are
incurred and the services are received.

For each business combination, the Group measures at the acquisition date, components of non-
controlling interests in the acquiree that are present ownership interests and entitle their holders to a
proportionate share of the entity’s net assets in the event of liquidation at either: (i) fair value; or (ii)
the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s
identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction
basis.

On the date of acquisition, goodwill is measured as the excess of (a) over (b) below:

(a) The aggregate of:

(i) the fair value of consideration transferred;

(ii) the amount of any non-controlling interest in the acquiree; and

(iii) in a business combination achieved in stages, the fair value of the Group’s previously held
equity interest in the investee.

(b) The net fair value of the identifiable assets acquired and the liabilities assumed.

In a business combination where the amount in (b) above exceeds the aggregate of the amounts in (a)
above, the Group recognises the resulting gain (“negative goodwill’) in profit or loss on the acquisition
date.

(c) Investment in subsidiaries

In the Company’s separate financial statements, investments in subsidiary companies are measured
at cost less impairment losses. Impairment losses are charged to profit or loss.

On disposal, the difference between the net disposal proceeds and the carrying amounts of the
subsidiaries disposed of is recognised in profit or loss.

(d) Associate and joint venture

An associate is an entity in which the Group has significant influence and that is neither a subsidiary
nor an interest in a joint arrangement. Significant influence is the power to participate in the financial
and operating policy decisions of the investee, but is not control or joint control over those policies.
The existence and effect of potential voting rights that are currently exercisable or convertible are
considered when assessing whether the Group has significant influence.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement
have rights to the net assets of the arrangement.

Investments in associate or joint venture are accounted for in the consolidated financial statements
using the equity method of accounting. Under the equity method, the investments in associate or joint
venture are initially recognised at cost and adjusted thereafter for post-acquisition changes in the
Group’s share of net assets of the associates or joint venture.

The Group’s share of net profit or loss and changes recognised directly in the other comprehensive
income of the associate or joint venture are recognised in the consolidated profit or loss and consolidated
statement of comprehensive income respectively.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(d) Associate and joint venture (Cont’d)

An investment in an associate or joint venture is accounted for using the equity method from the date
on which the Group obtains significant influence or joint control until the date the Group ceases to have
a significant influence or joint control over the associate or joint venture.

Premium relating to an associate or a joint venture is included in the carrying value of the investment
and it is not tested for impairment separately. Instead, the entire carrying amount of the investment is
tested for impairment.

Discount on acquisition is excluded from the carrying amount of the investment and is instead included
as income in the determination of the Group’s share of the associate’s and joint venture’s profit or loss
in the period in which the investment is acquired.

Unrealised gains or losses on transactions between the Group and its associate or joint venture are
eliminated to the extent of the Group’s interest in the associate or joint venture.

Equity accounting is discontinued when the carrying amount of the investment in an associate or joint
venture diminishes by virtue of losses to zero, unless the Group has legal or constructive obligations
or made payments on behalf of the associate and joint venture.

The results and reserves of associate or joint venture are accounted for in the consolidated financial
statements based on financial statements made up to the end of the financial year and prepared
using accounting policies that conform to those used by the Group for like transactions in similar
circumstances.

Distributions received from an associate or joint venture reduce the carrying amount of the investment.

When the Group ceases to have significant influence over an associate, any retained interest in the
former associate is recognised at fair value on the date when significant influence is lost. Any gain or
loss arising from the loss of significant influence over an associate is recognised in profit or loss.

When changes in the Group’s interests in an associate that do not result in a loss of significant influence,
the retained interests in the associate are not remeasured. Any gain or loss arising from the changes
in the Group’s interests in the associate is recognised in profit or loss.

In the Company’s separate financial statements, investments in associate and joint venture are
measured at cost less impairment losses, if any. Impairment losses are recognised in profit or loss.

On disposal, the difference between the net disposal proceeds and the carrying amount of the associate
or joint venture disposed of is recognised in profit or loss.

(e) Property, plant and equipment

(i) Recognition and measurement

Property, plant and equipment are stated at cost less accumulated depreciation and impairment
losses, if any.

The cost of property, plant and equipment includes expenditure that is directly attributable to the
acquisition of an asset. Dismantlement, removal or restoration costs are included as part of the
cost of property, plant and equipment if the obligation for dismantlement, removal or restoration is
incurred as a consequence of acquiring or using the asset.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(e) Property, plant and equipment (Cont’d)

(i) Recognition and measurement (Cont’d)

Subsequent costs are included in the asset’s carrying amount when it is probable that future
economic benefits associated with the asset will flow to the Group and the Company and the cost
of the asset can be measured reliably. The carrying amount of the replaced part is derecognised.
All other repairs and maintenance are charged to profit or loss during the financial year in which
they are incurred.

Property, plant and equipment are derecognised upon disposal or when no future economic
benefits are expected from their use or disposal. On disposal, the difference between the net
disposal proceeds and the carrying amount is recognised in profit or loss.

(ii) Depreciation

Freehold land and construction work-in-progress are not depreciated.

Depreciation is calculated to write off the depreciable amount of other property, plant and
equipment on a straight-line basis over their estimated useful lives. The depreciable amount is
determined after deducting residual value from cost.

The principal annual rates used for this purpose are:

%
Freehold building 2
Leasehold building 1-3
or over the remaining
period of lease
Leasehold land Over period of lease
Motor vehicles 10 - 20
Plant and machinery 10 - 20
Office equipment, furniture and fittings 5 - 15
Air conditioners, office renovation and pallets 10

The residual values, useful lives and depreciation methods are reviewed, and adjusted if
appropriate, at each reporting date.

(f) Impairment of non-financial assets

(a) Goodwill

Goodwill is tested for impairment annually, or more frequently if events or changes in circumstances
indicate that the goodwill may be impaired.

For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating
units that are expected to benefit from synergies of the business combination.

An impairment loss is recognised when the carrying amount of the cash-generating unit, including
the goodwill, exceeds the recoverable amount of the cash-generating unit. Recoverable amount
of the cash-generating unit is the higher of the cash-generating unit’s fair value less cost to sell
and its value-in-use.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(f) Impairment of non-financial assets (Cont’d)

(a) Goodwill (Cont’d)

The total impairment loss is allocated first to reduce the carrying amount of goodwill allocated to
the cash-generating unit and then to the other assets of the cash-generating unit proportionately
on the basis of the carrying amount of each asset in the cash-generating unit.

Impairment loss recognised for goodwill is not reversed in the event of an increase in recoverable
amount in subsequent periods.

(b) Property, plant and equipment, right-of-use assets, investments in subsidiaries, associate and
joint ventures

Other non-financial assets are assessed at each reporting date to determine whether there is any
indication of impairment.

If such an indication exists, the asset’s recoverable amount is estimated. The recoverable
amount is the higher of an asset’s fair value less cost to sell and its value-in-use. Value-in-use is
the present value of the future cash flows expected to be derived from the asset. Recoverable
amounts are estimated for individual assets or, if it is not possible, for the cash-generating unit to
which the asset belongs.

An impairment loss is recognised whenever the carrying amount of an asset or a cash-generating

unit exceeds its recoverable amount. Impairment losses are recognised in profit or loss except
for assets that are previously revalued where the revaluation was taken to other comprehensive
income. In this case the impairment is also recognised in other comprehensive income up to the
amount of any previous revaluation.

Any reversal of an impairment loss as a result of a subsequent increase in recoverable amount

should not exceed the carrying amount that would have been determined (net of amortisation or
depreciation, if applicable) had no impairment loss been previously recognised for the asset.

(g) Financial instruments

A financial instrument is any contract that gives rise to both a financial asset of one enterprise and a
financial liability or equity instrument of another enterprise. Financial assets and financial liabilities are
recognised when an entity becomes a party to the contractual provisions of an instrument.

Financial assets and financial liabilities are initially recognised at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from
the fair value of the financial assets or financial liabilities on initial recognition.

Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date
basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery
of assets within the time frame established by regulation or convention in the marketplace.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(g) Financial instruments (Cont’d)

Financial assets (Cont’d)

(i) Subsequent measurement

All recognised financial assets are subsequently measured in their entirety at either amortised
cost or fair value, depending on the classification of the financial assets. Financial assets are
measured subsequently in the following manners:

• at amortised cost (debt instruments);

• at fair value through other comprehensive income (“FVTOCI”); with recycling of cumulative
gains and losses (debt instruments);
• designated at FVTOCI, without recycling of cumulative gains and losses (equity instruments);
or
• at fair value through profit or loss (“FVTPL”).

(ii) Financial assets at amortised cost

Debt instruments that meet the following conditions are subsequently measured at amortised
cost:

• the financial asset is held within a business model whose objective is to hold financial assets
in order to collect contractual cash flows; and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortised cost are subsequently measured using the effective interest method
and are subject to impairment. Gains and losses are recognised in profit or loss when an asset is
derecognised, modified or impaired.

(iii) Equity instruments designated at FVTOCI

Upon initial recognition, management may make an irrevocable election (on an instrument-by-
instrument basis) to designate investments in equity instruments as at FVTOCI. Designation at
FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration
recognised by an acquirer in a business combination.

A financial asset is held for trading if:

• it has been acquired principally for the purpose of selling it in the near term;
• on initial recognition it is part of a portfolio of identified financial instruments that the entity
manages together and has evidence of a recent actual pattern of short-term profit-taking; or
• it is a derivative instrument (except for a derivative that is a financial guarantee contract or a
designated and effective hedging instrument).

Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction
costs. Subsequently, they are measured at fair value with gains and losses arising from changes
in fair value recognised in other comprehensive income (“OCI”) and accumulated in a reserve in
equity. Equity instruments designated at FVTOCI are not subject to impairment assessment.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(g) Financial instruments (Cont’d)

Financial assets (Cont’d)

(iv) Financial assets at FVTPL

Financial assets that do not meet the criteria for being measured at amortised cost or FVTOCI are
measured at FVTPL, including but not limited to:

• Debt instruments that are designated as at FVTPL, if such designation eliminates or

significantly reduces a measurement or recognition inconsistency that would arise from
measuring assets or liabilities or recognising the gains and losses on them on different
bases.
• Derivative instruments.

Financial assets at FVTPL are measured at fair value, with fair value gains or losses recognised
in profit or loss to the extent they are not part of a designated hedging relationship. The net gain
or loss recognised in profit or loss includes any dividend or interest earned on the financial assets.

(v) Impairment of financial assets

Loss allowance is recognised for ECL for all debt instruments not held at FVTPL, i.e. financial
assets at amortised cost or FVTOCI, receivables, contract assets and financial guarantee
contracts.

ECL is based on the difference between the contractual cash flows due in accordance with the
contract and all the cash flows that are expected to receive, discounted at an approximation of
the original effective interest rate. The expected cash flows will include cash flows from the sale of
collateral held or other credit enhancements that are integral to the contractual terms. The amount
of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition
of the respective financial asset.

Management measures the loss allowance of trade receivables and contract assets at an amount
equal to their lifetime ECL (i.e. simplified approach). The ECL on trade receivables and contract
assets are estimated based on historical credit loss experience, and where appropriate, adjusted
for forward-looking factors specific to the debtors and the economic environment.

For all other financial assets at amortised cost, where credit exposures for which there has not
been a significant increase in credit risk since initial recognition, ECL is provided for credit losses
that result from default events that are possible within 12 months after the reporting date.

For those credit exposures for which there has been a significant increase in the likelihood or risk
of a default occurring since initial recognition (instead of on evidence of a financial asset being
credit-impaired at the reporting date or an actual default occurring), a loss allowance is required
for credit losses expected over the remaining life of the financial assets.

(vi) Derecognition of financial assets

A financial asset is derecognised only when the contractual rights to the cash flows from the
financial asset expire; or when the financial asset is transferred and substantially all the risks and
rewards of ownership of the financial asset are transferred to another party.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(g) Financial instruments (Cont’d)

Financial assets (Cont’d)

(vi) Derecognition of financial assets (Cont’d)

If the entity neither transfers nor retains substantially all the risks and rewards of ownership and
continues to control a transferred financial asset, the entity recognises its retained interest in
the financial asset and an associated liability for amounts it may have to pay. If the entity retains
substantially all the risks and rewards of ownership of a transferred financial asset, the entity
continues to recognise the financial asset and also recognises a collateralised borrowing for the
proceeds received.

On derecognition of a financial asset measured at amortised cost, the difference between the
financial asset’s carrying amount and the sum of the consideration received and receivable is
recognised in profit or loss. On derecognition of an investment in a debt instrument classified as
at FVTOCI, the cumulative gain or loss previously accumulated in the reserve is reclassified to
profit or loss. On derecognition of an investment in equity instrument classified at FVTOCI, the
cumulative gain or loss previously accumulated in the reserve is transferred to retained earnings.

Financial liabilities and equity instruments

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with
the substance of the contractual arrangements and the definitions of a financial liability and an equity
instrument.

Financial liabilities

All financial liabilities are subsequently measured at FVTPL or at amortised cost.

(i) Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is:

• contingent consideration of an acquirer in a business combination;

• held for trading; or
• it is designated as at FVTPL.

Financial liabilities are classified as held for trading if they are held for the purpose of repurchasing
in the near term. This category also includes derivatives entered into by the entity that are not
designated as hedging instruments. Separated embedded derivatives are also classified as held
for trading unless they are designated as effective hedging instruments.

Financial liabilities at FVTPL are measured at fair value, with gains or losses arising on changes
in fair value recognised in profit or loss to the extent that they are not part of a designated hedging
relationship. The net gain or loss recognised in profit or loss incorporates any interest paid on the
financial liabilities.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(g) Financial instruments (Cont’d)

Financial Liabilities (Cont’d)

(i) Financial liabilities at FVTPL (Cont’d)

For financial liabilities that are designated as at FVTPL, the amount of change in the fair value of
the financial liability that is attributable to changes in the credit risk of that liability is recognised
in OCI, unless the recognition of the effects of changes in the liability’s credit risk in OCI would
create or enlarge an accounting mismatch in profit or loss. The remaining amount of change in the
fair value of liability is recognised in profit or loss. Changes in fair value attributable to a financial
liability’s credit risk that are recognised in OCI are not subsequently reclassified to profit or loss;
instead, they are transferred to retained earnings upon derecognition of the financial liability.

(ii) Financial liabilities at amortised cost

These financial liabilities are subsequently measured at amortised cost using the effective interest
method.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument or
a financial liability by allocating interest income/expense over the relevant periods. The effective
interest rate is the rate that exactly discounts estimated future cash receipts/payments (including
all fees and points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of a debt instrument
or a financial liability, to the amortised cost of the debt instrument or the financial liability.

Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payments when
due in accordance with the terms of a debt instrument.

Financial guarantee contracts issued are initially measured at their fair values and, if not
designated as at FVTPL and do not arise from a transfer of a financial asset, are subsequently
measured at the higher of:

• the loss allowance determined in accordance with MFRS 9; and

• the amount recognised initially less, where appropriate, cumulative amount of income
recognised.

(iii) Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the obligations under the liabilities
are discharged, cancelled or expired. The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable, including any non-cash assets
transferred or liabilities assumed, is recognised in profit or loss.

When an existing financial liability is replaced by another financial liability from the same lender
on substantially different terms, or the terms of an existing liability are substantially modified, such
an exchange or modification is treated as derecognition of the original liability and the recognition
of a new liability.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(g) Financial instruments (Cont’d)

Equity instrument

Equity instruments issued are recognised at the proceeds received. Costs incurred directly attributable
to the issuance of the equity instruments are accounted for as a deduction from equity.

Repurchase of own equity instruments is deducted directly in equity. No gain or loss is recognised in
profit or loss on the purchase, sale, issue or cancellation of own equity instruments.

Derivative financial instruments and hedging

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into
and are subsequently measured at fair value. The resulting gain or loss is recognised in profit or loss,
unless the derivative is designated and effective as a hedging instrument.

At inception of a designated hedging relationship, the Group documents the risk management objective
and strategy for undertaking the hedge. The Group also documents the economic relationship between
the hedged item and the hedging instrument, including whether the changes in cash flows of the
hedged item and hedging instrument are expected to offset each other.

(h) Provisions

Provisions are recognised when the entity has a present obligation (legal or constructive) as a result of
a past event, when it is probable that the entity will be required to settle that obligation and a reliable
estimate can be made of the amount of the obligation. If the effect of the time value of money is
material, a provision represents the present value of estimated future those cash flows.

When some or all of the cash flows required to settle a provision are expected to be recovered from a
third party, an asset is recognised if it is virtually certain that reimbursement will be received and the
amount of the receivable can be measured reliably.

(i) Revenue and income recognition

Revenue from a contract with a customer is recognised when control of the goods or services are
transferred to the customer. Revenue is measured based on the consideration specified in the contract
to which the entity expects to be entitled in exchange for transferring the goods or services to the
customer, excluding amounts collected on behalf of third parties.

If a contract with a customer contains more than one performance obligation, the total consideration is
allocated to each performance obligation based on the relative stand-alone selling prices of the goods
or services promised in the contract. A corresponding receivable is recognised for the consideration
that is unconditional when only the passage of time is required before the payment is due. There is
no element of significant financing component on the Group’s revenue transactions as customers are
required to pay within a credit term of 30 to 90 days.

(i) Revenue from transportation and warehousing are recognised over time when customer
simultaneously receives and consumes the benefits provided by the Group’s performance based
on the actual service provided to the end of the reporting period.

(ii) Revenue from freight forwarding is recognised in profit or loss at a point in time once the service
has been completed and the Group has an enforceable right to payment for performance
completed to date.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(i) Revenue and income recognition (Cont’d)

(iii) Truck rental income is recognised on a straight-line basis over the specific tenure of the respective
leases.

(iv) Forwarding agency commission is recognised as and when services are completed.

(v) Insurance agency commission income is recognised upon the execution or renewal of insurance
policies.

Contract Balances Arising from Revenue Recognition

Contract assets are the right to consideration in exchange for goods or services transferred to customers.
If goods or services are transferred to customers before the customers pay consideration or before
payment is due, contract assets are recognised for the earned consideration that is conditional. Trade
receivables represent the entity’s right to an amount of consideration that is unconditional.

Contract liabilities are the obligation to transfer goods or services to customers for which the entity has
received consideration (or an amount of consideration is due) from the customers. If the customers
pay consideration before the entity transfers goods or services to the customers, contract liabilities are
recognised when the payment is made or the payment is due (whichever is earlier).

Other income is recognised as follows:

(i) Interest income is recognised on a time proportion basis.

(ii) Dividend income is recognised when the right to receive payment is established.

(j) Foreign currencies

(i) Transactions and balances in foreign currencies

Foreign currencies are translated to the functional currency at the rate of exchange ruling at the
date of the transaction.

Exchange differences arising on the settlement of monetary items and the translation of monetary
items are included in profit or loss for the period.

Non-monetary items which are measured in terms of historical costs denominated in foreign
currencies are translated at foreign exchange rates ruling at the date of the transaction.

Non-monetary items which are measured at fair values denominated in foreign currencies are
translated at the foreign exchange rates ruling at the date when the fair value was determined.

When a gain or loss on a non-monetary item is recognised directly in other comprehensive income,
any corresponding exchange gain or loss is recognised directly in other comprehensive income.
When a gain or loss on a non-monetary item is recognised in profit or loss, any corresponding
exchange gain or loss is recognised in profit or loss.

(ii) Translation of foreign operations

For consolidation purposes, all assets and liabilities of foreign operations that have a functional
currency other than RM (including goodwill and fair value adjustments arising from the acquisition
of the foreign operations) are translated at the exchange rates ruling at the reporting date.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(j) Foreign currencies (Cont’d)

(ii) Translation of foreign operations (Cont’d)

Income and expense items are translated at exchange rates approximating those ruling on
transaction dates.

All exchange differences arising from the translation of the financial statements of foreign operations
are dealt with through the exchange translation reserve account within other comprehensive
income. On the disposal of a foreign operation, the cumulative exchange translation reserves
relating to that foreign operation are recognised in profit or loss as part of the gain or loss on
disposal.

(k) Leases

The Group as lessee

Right-of-use assets and corresponding lease liabilities are recognised with respect to all lease
agreements, except for short-term leases and leases of low value assets.

For short-term leases (i.e. leases with a lease term of 12 months or less) and leases of low value
assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

The lease liabilities is initially measured at the present value of the lease payments that are not paid at
the lease commencement date, discounted using the rate implicit in the lease or incremental borrowing
rate, where applicable. Lease payments included in the measurement of the lease liabilities comprise:
(i) fixed lease payments, less lease incentives; (ii) variable lease payments based upon an index or a
rate; and (iii) payments of penalties for terminating the lease.

The right-of-use assets comprise the corresponding lease liabilities, lease payments made at or before
the lease commencement date and initial direct costs. Whenever there is an obligation to dismantle
and remove a leased asset, restore the site on which it is located or restore the underlying asset to the
agreed condition, a provision is recognised. These costs are included in the related right-of-use assets.

Right-of-use assets are measured at cost less accumulated depreciation and impairment losses.
They are depreciated over the shorter period of lease term and useful life of the underlying assets.
The depreciation starts on the lease commencement date. The depreciation periods and depreciation
method are reviewed, and adjusted if appropriate, at each reporting date.

Variable lease payment (not based upon an index or a rate) are recognised as an expense in the period
in which it is incurred.

The Group as lessor

Leases are classified as finance leases or operating leases. Whenever the lease transfers substantially
all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All
other leases are classified as operating leases.

Rental income from operating leases is recognised on a straight-line basis over the lease term. Initial
direct costs incurred are added to the carrying amount of the leased asset and recognised as an
expense on a straight-line basis over the lease term.

Amounts due from lessees under finance leases are recognised as receivables at the amount of the
net investment in the leases. Finance lease income is allocated to reporting periods so as to reflect a
constant periodic rate of return on the net investment outstanding in respect of the leases.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(l) Employee benefits

(i) Short-term employee benefits

Salaries, wages, allowances, bonuses, paid annual leave, paid sick leave and non-monetary
benefits are recognised as an expense in the period in which the associated services are rendered
by employees.

(ii) Post-employment benefits

The Company and its subsidiary companies pay monthly contributions to the Employees Provident
Fund (the “EPF”) which is a defined contribution plan.

The legal or constructive obligation of the Company and its subsidiary companies is limited to the
amount that they agree to contribute to the EPF. The contributions to the EPF are charged to profit
or loss in the period to which they relate.

(m) Government grant

Government grants, including non-monetary grants at fair value, are not recognised until there is
reasonable assurance that: (i) the Group will comply with the conditions attaching to them; and (ii) the
grants will be received.

Government grants (recognised as deferred income) are released to profit or loss on a systematic
basis over the financial periods in which the Group recognises as expenses the related costs for which
the grants are intended to compensate.

A government grant that is receivable as compensation for expenses or losses already incurred or
for the purpose of giving immediate financial support to the Group with no future related costs, are
recognised in profit or loss in the financial period in which it becomes receivable.

(n) Borrowing costs

Borrowing costs incurred on assets under development that take a substantial period of time for
completion are capitalised into the carrying value of the assets. Capitalisation of borrowing costs
commences when the activities to prepare the asset for its intended use or sale are in progress and
the expenditures and borrowing costs are incurred; and ceases when the asset is completed or during
extended periods when active development is interrupted.

All other borrowing costs are recognised in profit or loss in the financial period in which they are
incurred.

(o) Taxation

The income tax expense represents the aggregate of current tax and deferred tax.

Current tax and deferred tax are recognised in profit or loss. Current tax and deferred tax are recognised
in other comprehensive income or directly in equity, if the tax relates to items that are recognised in other
comprehensive income or directly in equity. Where deferred tax arises from a business combination,
the tax effect is included in the accounting for the business combination.

(i) Current tax

Current tax is the expected income tax payable on the taxable profit for the financial year, estimated
using the tax rates enacted or substantially enacted by the reporting date.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(o) Taxation (Cont’d)

(i) Current tax (Cont’d)

A provision is recognised for those matters for which the tax determination is uncertain but it is
considered probable that there will be a future payment to a tax authority. The provisions are
measured at the best estimate of the amount expected to become payable.

(ii) Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying
amounts of assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit, which is accounted using the liability method.
 
A deferred tax liability is recognised for all taxable temporary differences. A deferred tax asset is
only recognised for deductible temporary differences and unutilised tax credit to the extent that
it is probable that taxable profit will be available in future against which the deductible temporary
differences and unutilised tax credit can be utilised.

No deferred tax is recognised for temporary differences arising from the initial recognition of:

(i) goodwill, or

(ii) an asset or liability which is not a business combination and at the time of the transaction,
affects neither accounting profit nor taxable profit.

Deferred taxes are measured based on tax consequences that would follow from the manner in which
the asset or liability is expected to be recovered or settled, and based on the tax rates enacted or
substantively enacted at the reporting date that are expected to apply to the financial period when the
asset is realised or when the liability is settled.

(p) Cash and cash equivalents

Cash and cash equivalents are short term, highly liquid investments that are readily convertible to
known amounts of cash and which are subject to insignificant risk of changes in value.

(q) Segmental reporting

Segment reporting in the financial statements is presented on the same basis as it is used by
management internally for evaluating operating segment performance and in deciding how to allocate
resources to each operating segment. Operating segments are distinguishable components of the
Group that engage in business activities from which they may earn revenues and incur expenses,
including revenues and expenses that relate to transactions with any of the Group’s other components.
An operating segment’s results are reviewed regularly by the chief operating decision maker to decide
how to allocate resources to the segment and assess its performance, and for which discrete financial
information is available. The management team monitors the financial performance from the Group’s
perspective and performs regular review to assess the achievability of the performance at end of each
reporting period.

Segment revenue and expense, are those amounts resulting from operating activities of a segment that
are directly attributable to the segment and a relevant portion that can be allocated on a reasonable
basis to the segment.
 

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

(q) Segmental reporting (Cont’d)

Segment revenue and expense, are determined before intra-group balances and intra-group
transactions are eliminated as part of the consolidation process, except to the extent that such intra-
group balances and transactions are between group entities within a single segment.

Segment assets and liabilities information are neither included in the internal management reports
nor provided regularly to the management. Hence no disclosures are made on segment assets and
liabilities.

(r) Fair value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.

All assets and liabilities, for which fair value is measured or disclosed, are categorised within the fair
value hierarchy set out below based on the inputs that are significant to the fair value measurement.

Fair value measurements are categorised as follows:

Level 1: Unadjusted quoted prices in active markets (for identical assets or liabilities).

Level 2: Inputs (other than quoted prices included within Level 1) are observable either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Valuation techniques that include unobservable inputs (not based on observable market
data).

131
132
5. PROPERTY, PLANT AND EQUIPMENT

Office Air
Group equipment, conditioners,
2022 Freehold Plant furniture office Construction
land and Leasehold Leasehold Motor and and renovation work-in
buildings buildings land vehicles machinery fittings and pallets progress Total
Cost RM RM RM RM RM RM RM RM RM
ANNUAL REPORT 2022

At 1 April 2021 132,476,686 218,455,476 144,445,943 112,602,767 65,904,519 39,031,125 60,282,173 - 773,198,689
Additions 428,758 2,086,105 610,067 16,771,245 5,778,826 6,750,630 6,740,789 8,961,950 48,128,370
Disposals - - - (7,935,788) (689,911) (291,583) (6,171) - (8,923,453)
Write offs - (19,654,652) - - (19,500) (8,463,706) (3,458,649) - (31,596,507)
At 31 March 2022 132,905,444 200,886,929 145,056,010 121,438,224 70,973,934 37,026,466 63,558,142 8,961,950 780,807,099

Accumulated
depreciation
NOTES TO THE FINANCIAL STATEMENTS

At 1 April 2021 7,520,629 46,342,767 11,043,730 91,485,291 33,883,267 26,183,461 41,337,681 - 257,796,826
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

Charge for the

financial year 1,945,332 4,517,210 1,954,634 7,220,929 6,120,818 3,387,119 3,810,050 - 28,956,092
Disposals - - - (7,935,782) (397,886) (124,456) (5,152) - (8,463,276)
Write offs - (4,604,764) - - (7,150) (7,979,838) (2,979,632) - (15,571,384)
At 31 March 2022 9,465,961 46,255,213 12,998,364 90,770,438 39,599,049 21,466,286 42,162,947 - 262,718,258

Net carrying amount

At 31 March 2022 123,439,483 154,631,716 132,057,646 30,667,786 31,374,885 15,560,180 21,395,195 8,961,950 518,088,841
 5. PROPERTY, PLANT AND EQUIPMENT (CONT’D)

Office Air
Group equipment, conditioners,
2021 Freehold Plant furniture office
land and Leasehold Leasehold Motor and and renovation
buildings buildings land vehicles machinery fittings and pallets Total
Cost RM RM RM RM RM RM RM RM

At 1 April 2020 132,223,401 208,343,779 134,095,904 107,957,304 58,575,999 36,412,169 59,145,662 736,754,218
Additions 253,285 10,111,697 10,350,039 7,681,890 7,570,937 3,442,145 1,560,316 40,970,309
Disposals - - - (2,902,926) - (486,710) (59,380) (3,449,016)
Write offs - - - (133,501) (242,417) (336,479) (364,425) (1,076,822)
At 31 March 2021 132,476,686 218,455,476 144,445,943 112,602,767 65,904,519 39,031,125 60,282,173 773,198,689

Accumulated depreciation

At 1 April 2020 5,595,160 41,791,270 9,172,928 87,096,806 28,302,075 24,037,470 37,511,154 233,506,863
Charge for the financial year 1,925,469 4,551,497 1,870,802 7,340,089 5,823,609 2,843,934 4,086,364 28,441,764
Disposals - - - (2,818,104) - (440,197) (10,886) (3,269,187)
Write offs - - - (133,500) (242,417) (257,746) (248,951) (882,614)
At 31 March 2021 7,520,629 46,342,767 11,043,730 91,485,291 33,883,267 26,183,461 41,337,681 257,796,826

Net carrying amount

At 31 March 2021 124,956,057 172,112,709 133,402,213 21,117,476 32,021,252 12,847,664 18,944,492 515,401,863
ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

133
134
5. PROPERTY, PLANT AND EQUIPMENT (CONT’D)

Office Air
Company equipment, conditioners,
2022 Freehold Plant furniture office Construction
land and Leasehold Leasehold Motor and and renovation work-in
buildings buildings land vehicles machinery fittings and pallets progress Total
Cost RM RM RM RM RM RM RM RM RM
ANNUAL REPORT 2022

At 1 April 2021 3,861,606 159,784,921 114,973,660 105,477,131 17,022,656 33,402,274 56,904,555 - 491,426,803
Additions - 2,062,135 - 14,368,729 2,979,660 4,902,331 6,016,135 8,961,950 39,290,940
Disposals - - - (4,641,849) (222,000) (521,886) (6,171) - (5,391,906)
Write offs - (19,654,652) - - (19,500) (8,463,706) (3,458,649) - (31,596,507)
At 31 March 2022 3,861,606 142,192,404 114,973,660 115,204,011 19,760,816 29,319,013 59,455,870 8,961,950 493,729,330

Accumulated
depreciation
NOTES TO THE FINANCIAL STATEMENTS

At 1 April 2021 674,291 26,482,481 9,082,433 84,186,024 16,440,473 23,664,466 40,222,288 - 200,752,456
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

Charge for the

financial year 51,111 3,088,981 1,452,276 6,313,174 465,601 2,336,924 3,443,537 - 17,151,604
Disposals - - - (4,641,849) (220,950) (81,840) (5,152) - (4,949,791)
Write offs - (4,604,764) - - (7,150) (7,979,838) (2,979,632) - (15,571,384)
At 31 March 2022 725,402 24,966,698 10,534,709 85,857,349 16,677,974 17,939,712 40,681,041 - 197,382,885

Net carrying amount

At 31 March 2022 3,136,204 117,225,706 104,438,951 29,346,662 3,082,842 11,379,301 18,774,829 8,961,950 296,346,445
 5. PROPERTY, PLANT AND EQUIPMENT (CONT’D)

Office Air
Company equipment, conditioners,
2021 Freehold Plant furniture office
land and Leasehold Leasehold Motor and and renovation
buildings buildings land vehicles machinery fittings and pallets Total
Cost RM RM RM RM RM RM RM RM

At 1 April 2020 3,861,606 159,784,921 114,973,660 98,939,365 17,243,173 31,215,745 55,782,631 481,801,101
Additions - - - 7,537,752 21,900 2,971,307 1,545,729 12,076,688
Disposals - - - (866,486) - (448,299) (59,380) (1,374,165)
Write offs - - - (133,500) (242,417) (336,479) (364,425) (1,076,821)
At 31 March 2021 3,861,606 159,784,921 114,973,660 105,477,131 17,022,656 33,402,274 56,904,555 491,426,803

Accumulated depreciation

At 1 April 2020 623,180 23,265,558 7,630,157 79,098,538 16,240,046 22,481,431 36,811,470 186,150,380
Charge for the financial year 51,111 3,216,923 1,452,276 6,029,295 442,844 1,867,447 3,670,655 16,730,551
Disposals - - - (808,309) - (426,666) (10,886) (1,245,861)
Write offs - - - (133,500) (242,417) (257,746) (248,951) (882,614)
At 31 March 2021 674,291 26,482,481 9,082,433 84,186,024 16,440,473 23,664,466 40,222,288 200,752,456

Net carrying amount

At 31 March 2021 3,187,315 133,302,440 105,891,227 21,291,107 582,183 9,737,808 16,682,267 290,674,347
ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

135
 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

5. PROPERTY, PLANT AND EQUIPMENT (CONT’D)

At the reporting date, net carrying amount of property, plant and equipment of the Group and of the Company
include the following right-of-use assets, which are presented together with the owned assets of the same
class as the underlying assets:

Group Company
2022 2021 2022 2021
RM RM RM RM

Leasehold buildings 154,631,716 172,112,709 117,225,706 133,302,440

Leasehold land 132,057,646 133,402,213 104,438,951 105,891,227
Acquired via hire purchase
arrangements:
- Motor vehicles 2,139,232 - - -
288,828,594 305,514,922 221,664,657 239,193,667

As of 31 March 2022, the following assets are charged to licensed banks as security for bank term loans,
as disclosed in note 24:

Group
2022 2021
RM RM

Net carrying amount:

- Freehold land and buildings 70,535,805 71,465,360

Title deed of a leasehold land with net carrying amount of RM1,784,569 (2021: RM1,803,773) has yet to be
issued in or transferred to the name of the Company.

6. LEASES

Group Company
2022 2021 2022 2021
RM RM RM RM

Right-of-use assets

Cost
At 1 April 40,173,144 22,753,486 33,090,032 15,785,668
Additions 24,122,163 17,679,011 3,355,552 17,304,364
Termination of lease contracts (12,320,502) (259,353) (11,560,135) -
At 31 March 51,974,805 40,173,144 24,885,449 33,090,032

Accumulated depreciation
At 1 April 20,648,856 9,677,389 17,305,909 8,039,440
Charge for the financial year 16,242,926 11,071,947 8,059,353 9,266,469
Termination of lease contracts (11,427,599) (100,480) (11,079,350) -
At 31 March 25,464,183 20,648,856 14,285,912 17,305,909

Net carrying amount

At 31 March 26,510,622 19,524,288 10,599,537 15,784,123

136
 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

6. LEASES (CONT’D)

Group Company
2022 2021 2022 2021
RM RM RM RM

Right-of-use assets at the end of the

financial period comprise of:

Properties 22,771,786 15,761,808 10,587,140 15,761,808

Motor vehicles 3,726,439 3,740,165 - -
Plant and machinery 12,397 22,315 12,397 22,315
26,510,622 19,524,288 10,599,537 15,784,123

Lease liabilities
- Current 16,375,561 9,017,240 7,579,015 7,018,319
- Non-current 12,177,574 10,704,697 3,294,156 8,861,587
28,553,135 19,721,937 10,873,171 15,879,906

The leases of properties, motor vehicles and plant and machinery are typically made for periods of 2 to 5
years. The lessors do not impose any covenants.

The lease payments associated with short-term leases or leases of low-value assets are recognised as an
expense on a straight-line basis over the lease term. No right-of-use assets and lease liabilities are recognised
for these leases. At the reporting date, the Group and the Company is committed to RM19,553,987 (2021:
RM10,228,187) and RM22,813,118 (2021: RM14,122,819) for short-term leases.

Total cash outflows for the Group and the Company for leases during the current financial year (including fixed
and short-term lease payments) amounted to RM42,390,103 (2021: RM30,577,703) and RM33,034,248
(2021: RM25,262,095) respectively.

7. GOODWILL

Group
2022 2021
RM RM
Goodwill on consolidation 81,864,054 81,864,054

Goodwill arising from the acquisition of Gold Cold Transport Sdn Bhd (“GCT”) is allocated at the date of
acquisition, to the cold chain business of GCT as the cash generating unit (“CGU”). The consideration paid
for the acquisitions effectively included amounts for anticipated profitability, future market development of
the CGU and the benefit of expected synergies to arise after the acquisitions.

For annual impairment testing purposes, the recoverable amount of the CGU has been determined based on
its value-in-use calculation, which applies a discounted cash flow model using cash flow projections covering
a period of 10 years based on most recent financial budget and projections approved by management.
Management is of the opinion that the projection period is justified due to the long term nature of the
cold chain business and the CGU’s historical performance. Cash flow projection beyond 10-year period is
extrapolated using the estimated growth rate stated below, which is consistent with the long-term average
growth rate for the cold chain business industry.

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

7. GOODWILL (CONT’D)

Key assumptions used for value-in-use calculation are as follows:

Pre-tax discount rate(1) 8% (2021: 8%)

Revenue growth(2) 4% (2021: 4%)

Terminal growth rate(3) 1% (2021: 1%)

(1)
The pre-tax discount rate is estimated based on the CGU-specific weighted average cost of capital for
the financial year.

(2)
Revenue growth rate is estimated based on past performance and its expectations of market
development.

(3)
Terminal growth rate is assigned at the end of ten year cash flow projections based on the assumed
growth rate in perpetuity.

The directors believe that no reasonably possible changes in any of the key assumption would cause the
recoverable amount of the CGU to differ materially from its carrying amount as at 31 March 2022.

8. INVESTMENTS IN SUBSIDIARY COMPANIES

Company
2022 2021
RM RM
Unquoted shares, at cost
- in Malaysia 107,689,939 107,689,939

Details of the subsidiary companies are as follows:

Equity interest Principal

2022 2021 place
% % of business Principal activities

Baik Sepakat Sdn Bhd 100 100 Malaysia Truck rental and insurance agency
services
Tunas Cergas Logistik Sdn Bhd 100 100 Malaysia Truck rental and the provision of other
related logistics services
Emulsi Teknik Sdn Bhd 100 100 Malaysia Truck rental and logistics services
Maya Kekal Sdn Bhd 100 100 Malaysia Trading and warehousing
Precious Fortunes Sdn Bhd 100 100 Malaysia Warehousing
Titian Pelangi Sdn Bhd 100 100 Malaysia Warehousing
Omega Saujana Sdn Bhd 51 51 Malaysia Freight forwarding services
Tasco Yusen Gold Cold
Sdn Bhd (“TYGC”) 70 70 Malaysia Investment holding
Piala Kristal (M) Sdn Bhd 51 51 Malaysia Freight forwarding services

Meriah Selalu Sdn Bhd 100 100 Malaysia Operating container depot and providing
services of storing, handling, cleaning
and repairing of containers

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

8. INVESTMENTS IN SUBSIDIARY COMPANIES (CONT’D)

Details of the subsidiary companies are as follows (Cont’d):

Subsidiaries of TYGC

Equity interest Principal

2022 2021 place
% % of business Principal activities

Gold Cold Transport Sdn Bhd 100 100 Malaysia Transportation, provision of cold room
facilities, repackaging and value added
facilities services

GC Logistics Sdn Bhd 100 100 Malaysia Transportation, cold room storage
facilities, repackaging and value added
facilities services

Gold Cold Integrated
Logistics Sdn Bhd 100 100 Malaysia Transportation, cold room storage
facilities, repackaging and value added
facilities services

Gold Cold Solutions Sdn Bhd 100 100 Malaysia Logistics services, transportation,
warehousing, distribution and marketing
of goods

Subsidiaries that have material non-controlling interests

Details of the Group’s subsidiaries that have material non-controlling interests at the reporting date:

Proportion of Profit for the

ownership financial year
Principal interests held by allocated to non- Carrying amount of
Name of place of non-controlling controlling non-controlling
subsidiary business interests interests interests
2022 2021 2022 2021 2022 2021
% % RM RM RM RM

TYGC Malaysia 30 30 1,940,108 2,112,110 65,347,051 64,756,943

Other
immaterial
entities 2,746,110 2,215,017
68,093,161 66,971,960

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

8. INVESTMENTS IN SUBSIDIARY COMPANIES (CONT’D)

Summarised financial information of the subsidiaries that have material non-controlling interests (amounts
before intra-group elimination):

2022 2021
RM RM
TYGC

Non-current assets 272,783,448 252,727,785
Current assets 66,634,596 71,410,551
Non-current liabilities (69,612,500) (44,289,884)
Current liabilities (51,982,040) (63,991,976)
Net assets 217,823,504 215,856,476

Revenue 143,412,752 127,617,783
Profit for the financial year 6,467,028 7,040,366

Dividend paid to non-controlling interests 1,350,000 -

Net cash flows from operating activities 19,768,537 33,509,275

Net cash flows used in investing activities (18,771,968) (15,167,736)
Net cash flows used in financing activities (15,708,373) (66,849,861)
Net changes in cash and cash equivalents (14,711,804) (48,508,322)

Derecognition of subsidiary

On 27 June 2020, the Company lost control over Trans-Asia Shipping Pte Ltd (“TASPL”), which is under
members’ voluntary winding up and liquidator has been appointed at the same date. Accordingly, the
Company deconsolidated TASPL and derecognised its related assets and liabilities.

Group
2021
RM

Cash and cash equivalents 44,992
Transfer from exchange fluctuation reserve 779,868
824,860
Less: cash consideration received -
Loss on derecognition of subsidiary 824,860

The loss on derecognition of subsidiary is recognised in the profit or loss.

Group
2021
RM

Net cash outflow arising from derecognition of subsidiary:
Cash consideration received -
Cash and cash equivalents disposed of (44,992)
(44,992)

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

9. INVESTMENT IN ASSOCIATED COMPANY

Group Company
2022 2021 2022 2021
RM RM RM RM
Unquoted shares, at cost 3,000,000 3,000,000 3,000,000 3,000,000
Group’s share of results 562,279 196,691 - -
3,562,279 3,196,691 3,000,000 3,000,000

Details of the associated company which has principal place of business in Malaysia, is as follows:

Equity interest
2022 2021
% % Principal activities

Agate Electro Supplies Sdn Bhd

(“AESSB”) 50 50 Letting of property

The financial year end of AESSB is 31 December. For the purpose of applying the equity method in the
Group’s consolidated financial statements, the financial statements of AESSB for the financial year ended
31 December 2021 have been used.

The Group’s share in the results of the associated company, AESSB is as follows:

2022 2021
RM RM
Group’s share of results 365,588 148,706

The summarised financial information of the Group’s associated company, AESSB is as follows:

2022 2021
RM RM
Non-current assets 7,474,933 7,917,190
Current assets 1,370,355 425,183
Non-current liabilities (1,664,955) (1,664,610)
Current liabilities (55,775) (284,380)
Net assets 7,124,558 6,393,383

Revenue 1,504,800 -
Profit for the financial year 731,175 297,411

The amount owing by associated company comprises:

Group/Company
2022 2021
RM RM
Non-interest bearing advances 50,000 50,000

The balance is unsecured, receivable on demand and denominated in RM.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

9. INVESTMENT IN ASSOCIATED COMPANY (CONT’D)

The amount owing to associated company comprises:

Group/Company
2022 2021
RM RM
Trade account 940,500 -

The trade account is expected to be settled within the normal credit period.

10. INVESTMENTS IN JOINT VENTURES

Group Company
2022 2021 2022 2021
RM RM RM RM
Unquoted shares, at cost 10,950,000 400,000 400,000 400,000
Group’s share of results 757,444 (47,780) - -
11,707,444 352,220 - -
Equity contribution 2,400,000 3,080,000 2,400,000 3,080,000
14,107,444 3,432,220 2,800,000 3,480,000

The Group and the Company deemed interest free advances amounting to RM2,400,000 (2021:
RM3,080,000) to the joint venture as equity contribution from shareholder and thus, do not expect
repayment in the next 12 months.

Details of the joint ventures, which have principal place of business in Malaysia, are as follows:

Equity interest
2022 2021
% % Principal activities

YLTC Sdn Bhd (“YLTC”)* 40 40 Trading, distribution and logistics

Held through TYGC

Hypercold Logistics Sdn Bhd

(“Hypercold”)* 50 - Forwarding, logistics, chilled and
frozen storage, transportation of
goods and a distributor of all
kinds of goods

* Audited by an audit firm other than Mazars PLT.

The joint ventures are accounted for using the equity method in the consolidated financial statements.

The financial year end of YLTC and Hypercold is 31 December. For the purpose of applying the equity
method in the Company’s consolidated financial statements, the financial statements of YLTC and Hypercold
for the financial year ended 31 December 2021 have been used.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

10. INVESTMENTS IN JOINT VENTURES (CONT’D)

The Group’s share in the results of joint ventures are as follows:

2022 2021
YLTC Hypercold Total YLTC
RM RM RM RM
Group’s share of results 485,283 319,941 805,224 143,240

The summarised financial information of joint ventures are as follows:

2022 2021
YLTC Hypercold Total YLTC
RM RM RM RM
Non-current assets 571,231 11,226,448 11,797,679 418,065
Current assets 25,094,614 4,251,553 29,346,167 19,997,653
Non-current liabilities (84,129) (5,087,128) (5,171,257) -
Current liabilities (23,487,960) (2,078,872) (25,566,832) (19,535,169)
Net assets 2,093,756 8,312,001 10,405,757 880,549

Revenue 92,136,307 8,342,156 100,478,463 103,821,836

Profit for the financial year 1,213,207 1,288,790 2,501,997 358,100

Reconciliation of summarised financial information for joint ventures accounted for using the equity method
to the carrying amounts of interest in joint ventures are as follows:

2022 2021
YLTC Hypercold Total YLTC
RM RM RM RM
Net assets 2,093,756 8,312,001 10,405,757 880,549
Fair value adjustment - 2,688,368 2,688,368 -
2,093,756 11,000,369 13,094,125 880,549
Proportion ownership held by the Group 40% 50% 40%
837,502 5,500,185 6,337,687 352,220
Goodwill - 5,369,757 5,369,757 -

The Group’s share of net assets of the

joint ventures 837,502 10,869,942 11,707,444 352,220
Equity contribution 2,400,000 - 2,400,000 3,080,000

Carrying amount of net investment

as at 31 March 3,237,502 10,869,942 14,107,444 3,432,220

The amount owing by joint ventures comprise:

Group Company
2022 2021 2022 2021
RM RM RM RM
Trade account 16,219 447,272 619 132,837

The trade accounts are expected to be settled within the normal credit period.

The amount owing by joint venture is denominated in RM.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

11. DEFERRED TAX ASSETS/(LIABILITIES)

Group Company
2022 2021 2022 2021
RM RM RM RM
At the beginning of the financial year (22,875,202) (23,954,306) (9,476,919) (9,341,996)
Recognised in profit or loss 603,854 1,079,104 (707,230) (134,923)
At end of the financial year (22,271,348) (22,875,202) (10,184,149) (9,476,919)

Represented by:
Deferred tax assets 323,932 6,998 - -
Deferred tax liabilities (22,595,280) (22,882,200) (10,184,149) (9,476,919)
(22,271,348) (22,875,202) (10,184,149) (9,476,919)

The deferred tax assets/(liabilities) on temporary differences recognised in the financial statements were as
follows:

Group Company
2022 2021 2022 2021
RM RM RM RM
Tax effects of:
- excess of capital allowances
over accumulated depreciation
on property, plant and equipment (18,765,714) (17,623,519) (10,983,826) (9,962,011)
- fair value adjustment arising from
acquisition of subsidiaries (6,289,625) (7,161,975) - -
- allowance for doubtful debts 549,376 456,208 464,709 371,541
- unrealised loss on foreign exchange 269,296 90,563 269,296 90,563
- leases 80,085 37,170 65,672 22,988
- other temporary differences 1,885,234 1,326,351 - -
(22,271,348) (22,875,202) (10,184,149) (9,476,919)

12. AMOUNTS OWING BY/TO SUBSIDIARY COMPANIES

The amounts owing by subsidiary companies comprise:

Company
2022 2021
RM RM
Current:
Trade accounts 1,936,611 4,446,785
Advances
- non-interest bearing 28,276,480 25,674,655
- interest bearing at 5.46% (2021: 5.46%) per annum 868,000 868,000
- interest bearing at 3.25% (2021: 3.25%) per annum 528,070 511,205
Interest receivable 229,402 248,550
31,838,563 31,749,195

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

12. AMOUNTS OWING BY/TO SUBSIDIARY COMPANIES (CONT’D)

The amounts owing by subsidiary companies comprise (Cont’d):

Company
2022 2021
RM RM
Non-current:
Advances
- interest bearing at 5.46% (2021: 5.46%) per annum 9,802,734 10,670,735
- interest bearing at 3.25% (2021: 3.25%) per annum 13,001,525 13,529,595
22,804,259 24,200,330
54,642,822 55,949,525

The trade accounts are expected to be settled within the normal credit period.

The non-interest bearing advances are unsecured and receivable on demand.

The interest bearing advances at 5.46% (2021: 5.46%) per annum are unsecured and receivable with 30
semi-annual instalments, commenced on 7 November 2019.

The interest bearing advances at 3.25% (2021: 3.25%) per annum are unsecured and receivable with 10
year monthly instalments, commenced on 1 December 2020.

The amounts owing by subsidiary companies are denominated in RM.

The amounts owing to subsidiary companies comprise:

Company
2022 2021
RM RM
Trade accounts 14,419,461 13,665,343
Non-trade balance - 20,365
Non-interest bearing advances 41,926,317 38,301,070
56,345,778 51,986,778

The trade accounts are expected to be settled within the normal credit period.

The non-trade balance and non-interest bearing advances are unsecured and payable on demand.

The amounts owing to subsidiary companies are denominated in RM.

13. CONTRACT ASSETS/(CONTRACT LIABILITIES)

Group
2022 2021
RM RM
At beginning of the financial year - -
Addition 731,947,081 -
Transfer to trade receivables (520,067,720) -
At end of the financial year 211,879,361 -

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

13. CONTRACT ASSETS/(CONTRACT LIABILITIES) (CONT’D)

A contract asset is recognised in respect of the right to consideration for contract logistics services rendered
which has not been billed at the reporting date.

Group
2022 2021
RM RM
Contract liabilities

Consideration received in advance:

At beginning of the financial year - -
Consideration received (1,813,340) -
Revenue recognised during the financial year 152,591 -
At end of the financial year (1,660,749) -

A contract liability is recognised upon collection of transaction price and being recognised as revenue over
the contract logistics service period.

14. TRADE RECEIVABLES

Group Company
2022 2021 2022 2021
RM RM RM RM
Gross trade receivables 341,251,578 171,507,930 202,461,082 138,858,270
Allowance for doubtful debts (2,471,853) (2,061,274) (1,936,286) (1,548,088)
338,779,725 169,446,656 200,524,796 137,310,182

The currency exposure profile of the gross trade receivables is as follows:

Group Company
2022 2021 2022 2021
RM RM RM RM
- RM 297,281,972 155,291,605 158,491,476 122,641,945
- US Dollar 43,212,453 15,478,799 43,212,453 15,478,799
- Singapore Dollar 335,540 131,196 335,540 131,196
- Thai Baht 421,613 518,718 421,613 518,718
- Euro - 87,612 - 87,612
341,251,578 171,507,930 202,461,082 138,858,270

Normal credit terms ranges between 30 to 60 days. For long term customers and related parties, the credit
terms may be extended to 90 days based on the discretion of the management.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

15. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

Group Company
2022 2021 2022 2021
RM RM RM RM
Other receivables 2,798,370 1,844,137 2,373,611 1,306,135
Deposits paid for the acquisition
of property, plant and equipment 6,629,460 3,580,183 - 147,000
Deposits 9,931,536 9,879,231 9,344,915 9,480,865
Prepayments 6,031,753 5,481,026 2,925,123 4,160,668
Goods and Services Tax (“GST”)
recoverable 258 258 - -
25,391,377 20,784,835 14,643,649 15,094,668

The other receivables, deposits and prepayments are denominated in RM.

16. AMOUNTS OWING BY/TO IMMEDIATE HOLDING COMPANY

The amounts owing by/to the immediate holding company represent trade accounts which are expected to
be settled within the normal credit period.

The currency exposure profile of amount owing by immediate holding company is as follows:

Group/Company
2022 2021
RM RM
- RM 3,398,841 3,074,015
- US Dollar 8,454,441 3,687,034
- Singapore Dollar 988,272 233
12,841,554 6,761,282

The currency exposure profile of amount owing to immediate holding company is as follows:

Group/Company
2022 2021
RM RM
- RM 5,784 -
- Japanese Yen 1,500,448 1,186,072
- US Dollar 1,563,524 1,477,010
3,069,756 2,663,082

147
 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

17. AMOUNTS OWING BY/TO RELATED COMPANIES

The amounts owing by/to related companies represent trade accounts which are expected to be settled
within the normal credit period.

The currency exposure profile of amounts owing by related companies is as follows:

Group/Company
2022 2021
RM RM
- RM 16,444,913 11,891,354
- US Dollar 34,095,029 10,042,384
- Singapore Dollar 118,215 286,680
- Thai Baht 6,992 1,577
- Hong Kong Dollar 7,767 90,995
50,672,916 22,312,990

The currency exposure profile of amounts owing to related companies is as follows:

Group/Company
2022 2021
RM RM
RM 123,482 360,384
Singapore Dollar 4,767,047 1,238,263
US Dollar 13,986,211 12,005,073
Thai Baht 454,525 199,521
Australian Dollar 2,957 3,190
Chinese Yuan Renminbi 618,818 520,591
Euro 703,433 1,254,292
Great Britain Pound 592,803 171,006
Hong Kong Dollar 270,923 343,073
South Korean Won 260,835 113,827
New Taiwan Dollar 6,968 41,561
Others 103,705 250,908
21,891,707 16,501,689

18. SHORT TERM INVESTMENTS

Group
2022 2021
RM RM
Designated at FVTPL

Unit Trust funds in Malaysia - 5,438,139

19. FIXED DEPOSITS WITH LICENSED BANKS

In the previous financial year, the effective interest rates of the Group’s and of the Company’s deposits
ranged between 1.30% to 2.05% per annum. All the deposits have maturities of three months or less.

148
 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

20. CASH AND BANK BALANCES

The currency exposure profile of cash and bank balances is as follows:

Group Company
2022 2021 2022 2021
RM RM RM RM
- RM 70,704,628 37,036,950 24,508,918 9,894,710
- US Dollar 13,230,360 39,162,597 13,230,360 39,162,597
- Singapore Dollar 3,472,586 1,381,130 3,472,586 1,381,130
- Thai Baht 54,508 252,269 54,508 252,269
87,462,082 77,832,946 41,266,372 50,690,706

21. SHARE CAPITAL

2022 2021
Number of shares RM Number of shares RM
Issued and fully paid:
At beginning of the financial year 800,000,000 100,801,317 200,000,000 100,801,317
Issued during the financial year
- share split - - 600,000,000 -
At end of the financial year 800,000,000 100,801,317 800,000,000 100,801,317

In the previous financial year, the issued and paid up share capital of the Company was increased from
200,000,000 ordinary shares to 800,000,000 ordinary shares by way of an issue of 600,000,000 new
ordinary shares by way of subdivision of every 1 existing share into 4 subdivided shares (“Share Split”).

The Company was given approval by Securities Commission of Malaysia to implement an Employees’
Share Option Scheme (“ESOS”) in 2007 in conjunction with the listing of the Company’s share on the Main
Market of Bursa Malaysia Securities Berhad.

To date, the Company has yet to implement the ESOS.

The main features of the ESOS proposed to be set out in the By-Laws are as follows:

(a) The maximum number of new shares which may be issued and allotted shall not in aggregate exceed
fifteen per cent (15%) of the issued and paid-up share capital of the Company at any point in time
during the existence of the ESOS.

(b) To qualify for participation in the ESOS, only employees who are employed full-time by the Company
or its subsidiary companies and executive directors who:

(i) shall have attained the age of eighteen (18) years by the Date of Offer;

(ii) must fall within such other categories and criteria that the ESOS Committee may decide from time
to time at its absolute discretion;

(iii) must have been employed for a continuous period of at least one (1) year in the Group and his
employment must have been confirmed by the Date of Offer.

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

21. SHARE CAPITAL (CONT’D)

(c) The maximum number of options to be offered to each eligible employee shall be at the discretion of
the ESOS Committee. In exercising its discretion, the ESOS Committee shall take into consideration
the seniority, performance and length of service of each eligible employee, subject to the following:

(i) there should be equitable allocation to the various grades of eligible employees, such that not
more than 50% of the shares available under the ESOS should be allocated, in aggregate, to
executive directors and senior management.

(ii) not more than 10% of the shares available under the ESOS should be allocated to any individual
director or employee who, either singly or collectively through persons connected with the director
or employee, holds 20% or more in the issued and paid-up capital of the Company.

For the purposes of these By-Laws, unless the context otherwise requires, “persons connected
with an eligible employee” or “persons connected with a director” shall have the same meaning
given in relation to persons connected with a director or major shareholder.

(d) The price at which the grantee is entitled to subscribe for each new share shall be based on five (5)
days weighted average market price of the Shares in the Company preceding the Date of Offer, with a
discount that does not exceed ten per cent (10%) or at the par value of the shares, whichever is higher.

(e) All new shares issued pursuant to the exercise of options will upon such allotment and issuance rank in
pari passu in all respects with the then existing issued and paid-up shares, save and except that they
are not entitled to dividends, rights, allotments and/or other distributions whereby the entitlement date
for such dividends, rights, allotments and/or other distributions is prior to the date of allotment of the
new shares. The new shares will be subject to all the provisions of the Articles of Association of the
Company in relation to transfer, transmission or otherwise.

(f) The number of shares under option or the exercise price or both, so far as the option remains
unexercised, may be adjusted following any variation in the issued share capital of the Company by
way of rights issue, bonus issue or other capitalisation issue, consolidation or subdivision of shares or
reduction of capital and other variation of capital of the Company.

(g) The ESOS shall be in force for a period of five (5) years from the effective date subject however
to any extension or renewal for a further period of five (5) years if the Board deemed fit, upon the
recommendation of the ESOS Committee. Save for any amendments and/or changes to the relevant
statutes guidelines and/or regulations currently in force, no further approval shall be required for the
extension of the ESOS provided that the Company shall serve appropriate notices on each grantee
and/or make necessary announcements to any/or all the relevant parties within thirty (30) days prior to
the expiry of the ESOS.

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

22. AMOUNT OWING TO CORPORATE SHAREHOLDER OF SUBSIDIARY COMPANY

Group
2022 2021
RM RM
Current:
Advances
- interest bearing at 5.46% (2021: 5.46%) per annum 372,000 372,000
Interest payable 98,510 106,523
470,510 478,523

Non-current:
Advances
- interest bearing at 5.46% (2021: 5.46%) per annum 4,201,172 4,573,172
4,671,682 5,051,695

The interest bearing advances are unsecured and repayable with 30 semi-annual instalments, commenced
on 7 November 2019.

The amount owing to corporate shareholder of subsidiary company is denominated in RM.

23. HIRE PURCHASE PAYABLES

Group
2022 2021
RM RM
Future instalments payable
- not later than one year 808,655 -
- later than one year but not later than five years 1,266,062 -
Total future instalments payable 2,074,717 -
Unexpired term charges (117,609) -
Total outstanding principal 1,957,108 -

Outstanding principal:
- not later than one year (included under current liabilities) (735,859) -
- later than one year but not later than five years
(included under non-current liabilities) 1,221,249 -

The interest rate of hire purchase payables is at 2.35% (2021: nil) per annum.

The hire purchase payables are denominated in RM.

151
 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

24. BANK TERM LOANS

Group Company
2022 2021 2022 2021
RM RM RM RM
The bank term loans are repayable
as follows:
(included under current liabilities)
- not later than one year 70,708,064 29,874,727 65,300,000 24,466,663

(included under non-current liabilities)

- later than one year but not later
than five years 105,385,686 123,656,797 84,533,323 97,866,651
- more than five years 41,617,991 92,944,453 38,400,018 90,366,689
147,003,677 216,601,250 122,933,341 188,233,340
217,711,741 246,475,977 188,233,341 212,700,003

The bank term loans are denominated in RM.

Bank term loans of the Group amounting to RM29,478,400 (2021: RM33,775,974) are secured by legal charged
over the freehold land, buildings and warehouses of a subsidiary company and guarantee by the Company.

152
 24. BANK TERM LOANS (CONT’D)

The details of the bank term loans are as follows:

Principal Monthly Group Company

amount instalment Commencing Interest rate per 2022 2021 2022 2021
RM RM date annum RM RM RM RM
14,000,000 116,667 29 March 2017 4.88% fixed rate 7,000,000 8,400,000 7,000,000 8,400,000
18,000,000 100,000 20 June 2017 4.93% fixed rate 12,300,000 13,500,000 12,300,000 13,500,000
50,000,000 833,333 07 July 2017 4.86% fixed rate 44,166,670 47,500,001 44,166,670 47,500,001
52,000,000 433,333 07 July 2017 4.99% fixed rate 45,933,338 49,400,002 45,933,338 49,400,002
10,000,000 55,556 17 August 2017 4.985% fixed rate 6,833,333 7,500,000 6,833,333 7,500,000
126,000,000 1,200,000 25 May 2018 5.46% fixed rate 72,000,000 86,400,000 72,000,000 86,400,000
22,000,000 209,912 04 January 2010 BLR – 1.80% 10,005,597 11,665,280 - -
7,089,000 54,593 01 December 2011 BLR – 2.00% 2,769,590 3,319,563 - -
12,640,000 97,342 01 December 2011 BLR – 2.00% 7,103,590 8,009,784 - -
1,500,000 11,522 04 January 2010 BLR – 2.00% 856,528 963,201 - -
170,880 1,082 01 December 2015 BLR – 2.00% 134,176 141,198 - -
166,680 1,056 01 December 2015 BLR – 2.00% 130,873 137,724 - -
167,280 1,060 01 December 2015 BLR – 2.00% 131,344 138,226 - -
167,880 1,063 01 December 2015 BLR – 2.00% 131,820 138,722 - -
169,680 1,075 01 December 2015 BLR – 2.00% 133,224 140,208 - -
170,280 1,079 01 December 2015 BLR – 2.00% 133,700 140,703 - -
12,000,000 110,086 01 February 2017 BLR – 2.00% 7,947,958 8,981,365 - -
217,711,741 246,475,977 188,233,341 212,700,003
ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

25. TRADE PAYABLES

The currency exposure profile of trade payables is as follows:

Group Company
2022 2021 2022 2021
RM RM RM RM
- RM 420,991,111 65,030,463 75,193,723 56,216,973
- Singapore Dollar 8,218 9,921 8,218 9,921
- Thai Baht 16,307 459,484 16,307 459,484
- US Dollar 695,918 44,419 695,918 44,419
- Japanese Yen - 1,086 - 1,086
- Euro 62,150 123,704 62,150 123,704
421,773,704 65,669,077 75,976,316 56,855,587

The credit terms extended are ranged between 15 and 60 days.

26. OTHER PAYABLES, DEPOSITS AND ACCRUALS

The other payables, deposits and accruals are denominated in RM.

27. REVENUE

The Group and the Company derives its revenue from contracts with customers for the transfer of services
over time and at a point of time and consistent with the revenue information that is disclosed for each
reportable segment.

The information on the disaggregation of revenue is disclosed in note 42 to the financial statements.

Information about remaining performance obligations that have original expected durations of one year or
less is not disclosed.

28. OTHER INCOME

Group Company
2022 2021 2022 2021
RM RM RM RM
Gross dividends from
-subsidiaries - - 3,150,000 -
-unquoted investments 36,600 36,600 36,600 36,600
Interest income 831,691 1,201,064 1,442,617 1,348,755
Fair value gain on short term investments 69,206 108,626 - -
Gain on disposal of property, plant and
equipment 1,167,713 809,323 985,084 281,771
Lease income from land and buildings 22,739 24,806 22,739 24,806
Gain on early termination of lease contracts 31,894 3,835 21,904 -
Sundry income 1,676,779 780,724 786,521 590,575
Government grant (see note (a)) 830,970 664,800 - -
Bad debts recovered 15,998 818,137 15,998 715,867
4,683,590 4,447,915 6,461,463 2,998,374

Note (a):
During the financial year, the Group received government subsidies of RM830,970 (2021: RM664,800)
in relation to the Wage Subsidy Programme under National Economic Recovery Plan initiated by the
Government of Malaysia.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

29. PROFIT FROM OPERATIONS

Group Company
2022 2021 2022 2021
RM RM RM RM
Profit from operations is stated after charging:

Auditors’ remuneration
- statutory audit 286,736 254,040 120,610 105,206
- review of quarterly financial statements 86,655 68,670 86,655 68,670
- other assurance service 7,500 5,000 7,500 5,000
Allowance for doubtful debts 425,210 362,401 388,198 325,198
Bad debts written off - 147,213 - 147,213
Depreciation of property, plant and
equipment 28,956,092 28,441,764 17,151,604 16,730,551
Depreciation of right-of-use assets 16,242,926 11,071,947 8,059,353 9,266,469
Legal and professional fees 1,144,001 663,350 324,174 380,985
Property, plant and equipment written off 16,025,123 194,208 16,025,123 194,207
Realised loss on foreign exchange 311,074 552,407 311,074 549,979
Unrealised loss on foreign exchange 744,720 2,404,500 744,720 2,404,500
Lease expenses for short-term leases
- land and buildings 10,841,684 4,826,024 12,186,566 3,034,769
- trucks 11,963,984 11,411,536 8,945,670 10,023,871
- forklifts 3,495,170 2,338,848 3,196,195 2,162,577
- office equipment 397,725 380,995 352,998 338,479
Other investment written off - 18,000 - 18,000
Loss on disposal of other assets - 42,000 - 42,000
Loss on derecognition of subsidiary - 824,860 - -

30. FINANCE COSTS

Group Company
2022 2021 2022 2021
RM RM RM RM
Interest expense on:
- bank term loans 11,571,426 13,609,057 10,460,936 12,306,640
- hire purchase payables 42,155 5,033 - -
- lease liabilities 1,325,372 505,653 493,221 360,535
- amount owing to corporate shareholder
of subsidiary company 256,874 277,185 - -
13,195,827 14,396,928 10,954,157 12,667,175

155
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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

31. TAX EXPENSE

Group Company
2022 2021 2022 2021
RM RM RM RM
Malaysian tax based on results
for the financial year
- current 21,394,249 18,285,498 16,187,623 13,977,179
- deferred (541,660) (1,596,284) 474,082 (165,327)
20,852,589 16,689,214 16,661,705 13,811,852

(Over)/Under provision in prior year

- current (364,893) (186,302) (310,169) (273,594)
- deferred (62,194) 517,180 233,148 300,250
(427,087) 330,878 (77,021) 26,656
20,425,502 17,020,092 16,584,684 13,838,508

The provision for taxation differs from the amount of taxation determined by applying the applicable statutory
tax rate to the profit before tax analysed as follows:

Group Company
2022 2021 2022 2021
RM RM RM RM
Accounting profit (excluding share
of results in associated company
and joint ventures) 86,975,651 60,397,458 75,444,265 47,305,422

Taxation at applicable
statutory tax rate of 24% 20,874,156 14,495,390 18,106,624 11,353,301
Tax effects arising from:
- non-deductible expenses 4,862,276 3,959,209 2,512,429 2,467,335
- non-taxable income (1,659,890) (1,146,694) (764,784) (8,784)
Utilisation of previously unrecognised
deferred tax benefits (31,389) (628,802) - -
Effect of different tax rate in another country - 10,111 - -
Utilisation of investment tax allowance (3,192,564) - (3,192,564) -
Under provision in prior year (427,087) 330,878 (77,021) 26,656
20,425,502 17,020,092 16,584,684 13,838,508

The following temporary differences at the end of the financial year of which, the deferred tax benefits have
not been recognised in the financial statements:

Group Company
2022 2021 2022 2021
RM RM RM RM
Unutilised tax losses 5,548,524 4,085,122 - -
Unabsorbed capital allowance 10,169,196 8,779,053 - -
Temporary differences arose from
- property, plant and equipment (9,943,783) (7,223,722) - -
- others 1,336,430 1,600,703 - -
7,110,367 7,241,156 - -

156
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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

31. TAX EXPENSE (CONT’D)

Pursuant to the relevant tax regulations, the unutilised tax losses will expire as follows:

Group Company
2022 2021 2022 2021
RM RM RM RM
Expiring in year of assessment:
2025 - 1,306,376 - -
2026 - 1,676,309 - -
2027 - 1,102,437 - -
2028 1,306,376 - - -
2029 1,591,832 - - -
2030 1,102,437 - - -
2032 1,547,879 - - -
5,548,524 4,085,122 - -

Under the Malaysian Finance Act 2021 which was gazatted on 31 December 2021, the existing time limit
for the Group and the Company to carry forward its accumulated unutilised tax losses has been extended
for a further 10 years. Accordingly, any accumulated unutilised tax losses brought forward from year of
assessment 2018 onwards can be carried forward for 10 consecutive years of assessment (i.e from year of
assessments 2019 to 2028 and so on).

The Company obtained approval from Malaysian Investment Development Authority (“MIDA”) for the
second round of tax incentive to carry out Integrated Logistics Services (“ILS”) activities as an expansion
project under the P.U. (A) 113 Income Tax (Exemption) (No. 12) Order 2006, Income Tax Act, 1967. The ILS
incentive enables the Company to enjoy income tax exemption via Investment Tax Allowance (“ITA”) of 60%
on qualifying capital expenditure incurred within five years, effective from 29 July 2021 to 28 July 2026. The
ITA can be offset against 70% of statutory income for each year of assessment.

32. BASIC EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY

33. DIVIDENDS

2022 2021
RM RM
In respect of the financial year ended 31 March 2020:
- Single-tier dividend of 2.00 sen per ordinary share - 4,000,000

In respect of the financial year ended 31 March 2021:
- Single-tier dividend of 2.00 sen per ordinary share - 4,000,000
- Single-tier dividend of 1.25 sen per ordinary share 10,000,000 -

In respect of the financial year ended 31 March 2022:
- Single-tier dividend of 1.00 sen per ordinary share 8,000,000 -
18,000,000 8,000,000

On 17 May 2022, the directors declared a single-tier dividend of 1.5 sen per ordinary share amounting to
RM12,000,000 in respect of the financial year ended 31 March 2022.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

34. PURCHASE OF PROPERTY, PLANT AND EQUIPMENT

Group Company
2022 2021 2022 2021
RM RM RM RM
Aggregate cost of property, plant and
equipment acquired (note 5) 48,128,370 40,970,309 39,290,940 12,076,688
Acquisition of property, plant and
equipment through hire purchase (2,266,115) - - -
Unpaid balance included under
other payables (2,981,656) (857,492) (2,926,746) (789,846)
Cash paid in respect of prior year
acquisition 857,492 765,398 789,846 765,398
Deposits paid in prior years (3,580,183) (3,357,510) (147,000) -
Deposits paid in current financial year
(note 15) 6,629,460 3,580,183 - 147,000
Total cash paid during the financial year 46,787,368 41,100,888 37,007,040 12,199,240

35. EMPLOYEE BENEFITS EXPENSE

Group Company
2022 2021 2022 2021
RM RM RM RM
Employee benefits expense 113,004,728 96,329,803 86,872,483 71,223,412

Included in the employee benefits expense are EPF contributions amounting to RM7,456,335 (2021:
RM6,753,847) for the Group and RM4,986,342 (2021: RM4,498,749) for the Company.

36. RELATED PARTY DISCLOSURES

For the purposes of these financial statements, parties are considered to be related to the Group if the Group
or the Company has the ability, directly or indirectly, to control the party or exercise significant influence over
the party in making financial and operating decisions, or vice versa or where the Group or the Company and
the party are subject to common control or common significant influence. Related parties may be individuals
or other entities.

Related parties also include key management personnel defined as those persons having authority and
responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The
key management personnel include all directors of the Group, and certain members of senior management
of the Group.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

36. RELATED PARTY DISCLOSURES (CONT’D)

Other than those disclosed elsewhere in the financial statements, the significant related party transactions during
the financial year were as follows:

--- Transaction value --- -- Balance outstanding --

Company Company
2022 2021 2022 2021
RM RM RM RM
Transactions with subsidiary companies

Rental of trucks paid and payable 272,177 305,340 65,820 60,590

Labour charges paid and payable 34,944,780 30,670,334 9,117,643 7,700,973
Rental of premises paid and payables 6,592,907 4,885,326 4,743,285 4,999,080
Handling fees paid and payable 2,905,392 519,716 276,592 357,895
Related logistic services paid and payable 424,854 1,665,763 216,121 546,805
Handling fees received and receivable 643,116 126,718 195,130 66,519
Related logistics services received
and receivable 3,286,954 9,846,461 537,733 3,895,598
Rental of trucks received and receivable 1,514,487 2,051,265 334,217 2,600
Interest received and receivable 1,048,166 798,686 229,402 248,550
Labour charges received and receivable 268,225 335,138 42,000 29,744
Rental of premises received and receivable 2,483,153 714,679 827,531 452,324
Sales of property, plant and equipment 60,000 - - -
Purchase of property, plant and equipment - 20,365 - 20,365

Net (advances to)/repayment from

subsidiary companies (1,222,619) 53,593,835 52,476,809 51,254,190

159
160
36. RELATED PARTY DISCLOSURES (CONT’D)

Transaction value Balance outstanding

Group Company Group Company
2022 2021 2022 2021 2022 2021 2022 2021
RM RM RM RM RM RM RM RM
Transactions with immediate holding company
ANNUAL REPORT 2022

Related logistic services received and receivable 100,236,411 67,626,934 100,236,411 67,626,934 12,841,554 6,761,282 12,841,554 6,761,282
Related logistic services paid and payable 45,935,970 36,902,162 45,935,970 36,902,162 3,063,217 2,632,524 3,063,217 2,632,524
Management fee paid and payable 11,372,983 9,716,870 11,372,983 9,716,870 - - - -
IT fees paid and payable 193,458 200,837 193,458 200,837 6,539 30,558 6,539 30,558

Transactions with subsidiary companies of the ultimate holding company

Related logistic services received and receivable 239,486,970 112,803,102 239,486,970 112,803,102 50,672,916 22,312,990 50,672,916 22,312,990
Related logistic services paid and payable 219,832,193 108,065,958 219,832,193 108,065,958 21,705,851 16,366,244 21,705,851 16,366,244
NOTES TO THE FINANCIAL STATEMENTS

IT fees paid and payable 2,426,764 2,311,104 2,426,764 2,311,104 152,038 135,445 152,038 135,445
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

Transactions with associated company

Accounting fee received and receivable - 19,000 - 19,000 - - - -

Rental of premises paid and payables 752,400 188,100 752,400 188,100 940,500 - 940,500 -

Transaction with joint venture company

Related logistic services received and receivable 194,567 2,713,889 23,030 - 16,219 447,272 619 132,837

Transactions with corporate shareholder of subsidiary company

Repayment to corporate shareholder of

subsidiary company (372,000) (372,000) - - 4,573,172 4,945,172 - -
Interest paid and payable 256,874 277,185 - - 98,510 106,523 - -

Transaction with a company related to significant shareholder and directors

Rental of premises paid and payable 1,225,230 1,220,632 1,225,230 1,220,632 33,818 33,818 33,818 33,818
 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

37. KEY MANAGEMENT PERSONNEL COMPENSATION

Group Company
2022 2021 2022 2021
RM RM RM RM
Directors

Directors’ fee 204,000 204,000 204,000 204,000

Short-term employee benefits
- salary, bonus and allowances 5,012,623 4,420,656 5,012,623 4,420,656
Post-employment benefits
- EPF 568,874 497,744 568,874 497,744
5,785,497 5,122,400 5,785,497 5,122,400

Other key management personnel

Short-term employee benefits

- salary, bonus and allowances 5,894,627 4,900,692 4,086,708 2,769,209
Post-employment benefits
- EPF 631,544 524,969 400,648 259,266
6,526,171 5,425,661 4,487,356 3,028,475
Total compensation 12,311,668 10,548,061 10,272,853 8,150,875

38. OTHER COMMITMENTS

Group Company
2022 2021 2022 2021
RM RM RM RM
Authorised and contracted for:
- acquisition of property, plant and
equipment 6,364,109 9,713,319 3,797,730 762,933
- construction of warehouse building 136,843,292 - 136,843,292 -
143,207,401 9,713,319 140,641,022 762,933

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

39. FINANCIAL INSTRUMENTS

(a) Classification of financial instruments

2022 2021
RM RM
Group
Financial assets
Amortised cost

Trade receivables 338,779,725 169,446,656
Other receivables * 12,729,906 11,723,368
Amount owing by immediate holding company 12,841,554 6,761,282
Amounts owing by related companies 50,672,916 22,312,990
Amount owing by associated company 50,000 50,000
Amount owing by a joint venture 16,219 447,272
Fixed deposits with licensed banks - 33,104,986
Cash and bank balances 87,462,082 77,832,946
502,552,402 321,679,500

FVTPL

Short term investments - 5,438,139

FVTOCI

Other assets – unquoted shares 340,201 302,701

* Excluding prepayments, GST recoverable and deposits paid for the acquisition of property, plant and equipment.

2022 2021
RM RM
Group
Financial liabilities
Amortised cost

Trade payables 421,773,704 65,669,077
Other payables, deposits and accruals 60,077,746 42,218,317
Amount owing to immediate holding company 3,069,756 2,663,082
Amounts owing to related companies 21,891,707 16,501,689
Amount owing to associated company 940,500 -
Amount owing to corporate shareholder of subsidiary company 4,671,682 5,051,695
Lease liabilities 28,553,135 19,721,937
Hire purchase payables 1,957,108 -
Bank term loans 217,711,741 246,475,977
760,647,079 398,301,774

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

39. FINANCIAL INSTRUMENTS (CONT’D)

(a) Classification of financial instruments (Cont’d)

2022 2021
RM RM
Company
Financial assets
Amortised cost

Trade receivables 200,524,796 137,310,182
Other receivables * 11,718,526 10,787,000
Amount owing by immediate holding company 12,841,554 6,761,282
Amounts owing by subsidiary companies 54,642,822 55,949,525
Amounts owing by related companies 50,672,916 22,312,990
Amount owing by associated company 50,000 50,000
Amount owing by a joint venture 619 132,837
Fixed deposits with licensed banks - 29,300,000
Cash and bank balances 41,266,372 50,690,706
371,717,605 313,294,522

FVTOCI

Other assets – unquoted shares 302,701 302,701

* Excluding prepayments, GST recoverable and deposits paid for the acquisition of property, plant and equipment.

2022 2021
RM RM
Company
Financial liabilities
Amortised cost

Trade payables 75,976,316 56,855,587
Other payables, deposits and accruals 46,543,866 31,799,816
Amount owing to immediate holding company 3,069,756 2,663,082
Amounts owing to subsidiary companies 56,345,778 51,986,778
Amounts owing to related companies 21,891,707 16,501,689
Amount owing to associated company 940,500 -
Lease liabilities 10,873,171 15,879,906
Bank term loans 188,233,341 212,700,003
403,874,435 388,386,861

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

39. FINANCIAL INSTRUMENTS (CONT’D)

(b) Fair value of financial instruments

The fair value of a financial instrument is the amount at which the instrument could be exchanged or
settled between knowledgeable and willing parties in an arm’s length transaction, other than in a forced
or liquidation sale.

The carrying amounts of the financial instruments of the Group and of the Company at the reporting date
approximate their fair values except for the following:

Group Company
Carrying Fair Carrying Fair
amount value amount value
2022 RM RM RM RM
Bank term loans 217,711,741 169,561,601 188,233,341 140,083,201

2021

Bank term loans 246,475,977 207,116,697 212,700,003 173,340,723

The methods and assumptions used to estimate the fair value of the financial instruments are as
follows:

Financial instruments Fair values determination

Other assets - unquoted shares By reference to adjusted fair value (if any) of the
investee company at the reporting date.
Short term investments By reference to statements of account at the
reporting date provided by fund managers.
Borrowings By reference to the prevailing market interest
rates for similar borrowings.

The Group’s and the Company’s financial instruments carried at fair value by level of fair value hierarchy
in which the different levels have been defined as follows:

Level 1 Level 2 Total

RM RM RM

Financial assets
Group
2022

Other assets - unquoted shares - 340,201 340,201

2021

Other assets - unquoted shares - 302,701 302,701

Short term investments - 5,438,139 5,438,139
- 5,740,840 5,740,840

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

39. FINANCIAL INSTRUMENTS (CONT’D)

(b) Fair value of financial instruments (Cont’d)

The Group’s and the Company’s financial instruments carried at fair value by level of fair value hierarchy
in which the different levels have been defined as follows (Cont’d):

Level 1 Level 2 Total
RM RM RM

Financial assets
Company
2022

Other assets - unquoted shares - 302,701 302,701

2021

Other assets - unquoted shares - 302,701 302,701

There is no financial instrument classified under level 3 of the fair value hierarchy.

During the financial year, there were no transfer of fair value measurements between Level 1 and Level
2 and no transfers into or out of Level 3 (2021: nil).

40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group’s activities expose it to a variety of financial risks, including foreign currency risk, interest rate risk,
credit risk and liquidity and cash flow risks arising in the normal course of the Group’s businesses.

The directors monitor the Group’s financial position closely with an objective to minimise potential adverse
effects on the financial performance of the Group. The directors review and agree on policies for managing
each of these risks and they are summarised below:

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of foreign exchange rates.

The Group is exposed to foreign currency risk on sale of services, purchases and borrowings that are
denominated in currencies other than the functional currency of the Group. The foreign currencies giving rise
to this risk are primarily US Dollar and Singapore Dollar.

The currency exposures of each financial instrument are disclosed in the respective notes to the financial
statements.

A sensitivity analysis has been performed based on the outstanding foreign currency denominated monetary
items of the Group and the Company as at reporting date. If the following foreign currencies were to strengthen
or weaken by 5% against the Group’s and the Company’s functional currency with all other variables held
constant, the Group and the Company profit after tax and equity would increase or decrease as follows:

Group Company
2022 2021 2022 2021
RM RM RM RM
US Dollar 3,144,372 2,084,084 3,144,372 2,084,084
Singapore Dollar 5,295 20,940 5,295 20,940

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

Foreign currency risk (Cont’d)

The other foreign currency denominated monetary items as at reporting date are not material, hence the
sensitivity analysis has not been presented.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate
because of changes in market interest rates.

The Group’s income and operating cash flows are substantially independent of changes in market interest
rates. Interest rate exposures arise from the Group’s fixed deposits and various borrowings.

Surplus funds are placed with reputable licensed banks, which generate interest income to the Group. The
Group manages its interest rate risk by placing such balances on short tenures of three months or less.

The Group’s and the Company’s exposure to the interest rate risk are primary from the floating interest rate
external borrowings.

At the reporting date, if the interest rate had been 50 basis points lower/higher, with all the other variables held
constant, the Group’s profit net of tax would have been RM112,018 (2021: RM128,349) higher/lower, arising
mainly as a result of lower/higher interest expense from floating rate bank term loans. The assumed movement
in basis points for interest rate sensitivity is based on the currently observable market environment.

Credit risk

Credit risk is the risk of loss that may arise from the possibility that a counterparty may be unable to meet the
terms of a contract in which the Group has a gain position. The Group’s management has a credit policy in
place to ensure that transactions are conducted with creditworthy counterparties.

Exposure to credit risk arising from sale of services made on deferred terms is managed through the application
of credit approvals, credit limits and monitoring procedures on an ongoing basis. If necessary, the Group may
obtain collaterals from counterparties as a means of mitigating losses in the event of default.

As at the reporting date, the maximum exposure to credit risk arising from receivables and contract assets are
represented by the carrying amounts in the statements of financial position.

Loss allowance is measured at an amount equal to lifetime ECL. The ECL are estimated using a provision
matrix by reference to past default experience of the debtor and an analysis of the debtor’s current position,
adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the
debtors operate, including the expected impact of Covid-19 outbreak and an assessment of both the current
as well as the forecast direction of conditions at the reporting date.

In measuring the ECL, trade receivables and contract assets have been assessed on a collective basis as they
possess shared credit risk characteristics. They have been grouped based on the days past due.

The ECL rates are based on the payment profile for sales over the past 36 months before the current financial
period as well as the corresponding credit losses during the respective financial period in the past. The historical
rates are adjusted to reflect the current and forward-looking macroeconomic factors affecting the customers’
ability to settle the outstanding balances and additional expected loss rate on Covid-19 outbreak is adjusted
in provision matrix. However, given the short period of exposure to credit risk, the impact of the Covid-19
outbreak has not been considered significant within the current financial period.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

Credit risk (Cont’d)

During the financial year, the Company provides corporate guarantee for the bank borrowing of subsidiary
companies and corporate guarantees to third parties on behalf of joint venture. The Company monitors the
results of the subsidiary companies and joint venture, and the repayment of borrowings on regular basis.
The maximum exposure of the Group and of the Company to credit risk arising from the above guarantees
amounting to RM10,150,000 and RM52,628,400 respectively (2021: RM12,550,000 and RM46,325,974).

The management determined the fair value of the above financial guarantees to be not significant.

As at the reporting date, there was no indication that the subsidiary companies and joint venture would default
on repayment. Accordingly, no loss allowances were identified based on 12-month ECL on these guarantees.

As at year end, RM19.45 million or 6% (2021: RM14.89 million or 9%) of trade receivables is outstanding from
a single debtor.

Management has taken reasonable steps to ensure that receivables and contract assets that are past due
but not impaired are stated at their realisable values. A significant portion of these receivables are regular
customers who have been transacting with the Group. The Group uses ageing analysis to monitor the credit
quality of the receivables and contract assets. Any receivables and contract assets having significant balances
past due more than 90 days, which are deemed to have higher credit risk, are monitored individually.

Receivable and contract assets are written off when there are evidence indicating that there are no reasonable
expectation of recovery based on management’s internal assessment or when the receivable has suffered a
loss.

The following table provides information about the exposure credit risk and ECL for receivables and contract
assets which are trade in nature:

Gross
carrying Loss Carrying
amount allowance amount
RM RM RM
Group
31 March 2022

Not past due 455,697,604 851,397 454,846,207

Less than 30 days past due 102,470,552 132,102 102,338,450
Between 30 and 90 days past due 39,375,318 101,370 39,273,948
597,543,474 1,084,869 596,458,605
Credit impaired:
- more than 90 days past due 18,003,888 947,731 17,056,157
- individually impaired 1,114,266 439,253 675,013
616,661,628 2,471,853 614,189,775

Included under receivables and contract assets:
Contract assets 211,879,361 - 211,879,361
Trade receivables 341,251,578 2,471,853 338,779,725
Amount owing by immediate holding company 12,841,554 - 12,841,554
Amounts owing by related companies 50,672,916 - 50,672,916
Amount owing by joint venture 16,219 - 16,219
616,661,628 2,471,853 614,189,775

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

The following table provides information about the exposure credit risk and ECL for receivables which are
trade in nature (Cont’d):

Gross
carrying Loss Carrying
amount allowance amount
RM RM RM
Company
31 March 2022

Not past due 146,412,858 478,776 145,934,082

Less than 30 days past due 70,863,582 129,156 70,734,426
Between 30 and 90 days past due 35,448,219 100,312 35,347,907
252,724,659 708,244 252,016,415
Credit impaired:
- more than 90 days past due 14,220,449 930,533 13,289,916
- individually impaired 967,674 297,509 670,165
267,912,782 1,936,286 265,976,496

Included under receivables:
Trade receivables 202,461,082 1,936,286 200,524,796
Amount owing by immediate holding company 12,841,554 - 12,841,554
Amounts owing by subsidiary companies 1,936,611 - 1,936,611
Amounts owing by related companies 50,672,916 - 50,672,916
Amount owing by joint venture 619 - 619
267,912,782 1,936,286 265,976,496

Group
31 March 2021

Not past due 152,824,033 669,255 152,154,778

Less than 30 days past due 32,807,149 189,991 32,617,158
Between 30 and 90 days past due 11,109,082 249,302 10,859,780
196,740,264 1,108,548 195,631,716
Credit impaired:
- more than 90 days past due 3,409,182 634,847 2,774,335
- individually impaired 880,028 317,879 562,149
201,029,474 2,061,274 198,968,200

Included under receivables:
Trade receivables 171,507,930 2,061,274 169,446,656
Amount owing by immediate holding company 6,761,282 - 6,761,282
Amounts owing by related companies 22,312,990 - 22,312,990
Amount owing by joint venture 447,272 - 447,272
201,029,474 2,061,274 198,968,200

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

The following table provides information about the exposure credit risk and ECL for receivables which are
trade in nature (Cont’d):

Gross
carrying Loss Carrying
amount allowance amount
RM RM RM
Company
31 March 2021

Not past due 126,292,074 415,954 125,876,120

Less than 30 days past due 30,652,623 121,485 30,531,138
Between 30 and 90 days past due 11,250,386 180,069 11,070,317
168,195,083 717,508 167,477,575
Credit impaired:
- more than 90 days past due 3,437,053 512,701 2,924,352
- individually impaired 880,028 317,879 562,149
172,512,164 1,548,088 170,964,076

Included under receivables:
Trade receivables 138,858,270 1,548,088 137,310,182
Amount owing by immediate holding company 6,761,282 - 6,761,282
Amounts owing by subsidiary companies 4,446,785 - 4,446,785
Amounts owing by related companies 22,312,990 - 22,312,990
Amount owing by joint venture 132,837 - 132,837
172,512,164 1,548,088 170,964,076

For other receivables and other financial assets (including cash and balances, fixed deposits placed with
licensed banks, short term investments and amounts owing from associated company, joint venture and
subsidiaries), the Group and the Company minimise credit risk by dealing exclusively with creditworthy
counterparties. At the reporting date, the Group’s and the Company’s maximum exposure to credit risk arising
from other receivables and other financial assets is represented by the carrying amount of each class of
financial assets recognised in the statements of financial position.

Other receivables and other financial assets are also subject to impairment requirements of MFRS 9. The
identified impairment loss is assessed to be insignificant.

Receivables that are past due but not impaired

The Group believes that no impairment allowance is necessary in respect of these receivables. They are
substantially companies with good collection track record and no recent history of default.

Receivables that are neither past due nor impaired

A significant portion of receivables that are neither past due nor impaired are regular customers that have been
transacting with the Group. The Group uses ageing analysis to monitor the credit quality of these receivables.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

Receivables that are neither past due nor impaired (Cont’d)

The movements in the allowance for impairment losses of trade in nature receivables during the financial year
were:

Group Company
RM RM
2022

At 1 April 2021 2,061,274 1,548,088
Additions of allowance for doubtful debts 425,210 388,198
Write off (14,631) -
At 31 March 2022 2,471,853 1,936,286

2021

At 1 April 2020 1,698,873 1,222,890
Additions of allowance for doubtful debts 362,401 325,198
At 31 March 2021 2,061,274 1,548,088

None of the contract asset at the reporting date is past due. Management does not expect any credit loss
based on the then assessment at the reporting date.

Liquidity and cash flow risks

iquidity risk is the risk that the Group and the Company will encounter difficulty in meeting financial obligations
L
due to shortage of funds.

The Group seeks to ensure all business units maintain optimum levels of liquidity at all times, sufficient for their
operating, investing and financing activities.

Therefore, the policy seeks to ensure that each business unit, through efficient working capital management
(i.e. accounts receivable and accounts payable management), must be able to convert its current assets into
cash to meet all demands for payment as and when they fall due.

Owing to the nature of its businesses, the Group seeks to maintain sufficient credit lines to meet its liquidity
requirements while ensuring an effective working capital management within the Group.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

Liquidity and cash flow risks (Cont’d)

The table below summarises the maturity profile of the Group’s and the Company’s financial liabilities at 31
March based on the contractual undiscounted cash flows.

Less than 1 More than 5

2022 year 1 to 5 years years Total
RM RM RM RM
Group
Trade payables 421,773,704 - - 421,773,704
Other payables, deposits and accruals 60,077,746 - - 60,077,746
Amount owing to immediate
holding company 3,069,756 - - 3,069,756
Amounts owing to related companies 21,891,707 - - 21,891,707
Amount owing to associated company 940,500 - - 940,500
Amount owing to corporate shareholder
of subsidiary company 496,200 1,569,245 2,861,311 4,926,756
Lease liabilities 17,157,305 12,357,434 - 29,514,739
Hire purchase payables 808,655 1,266,062 - 2,074,717
Bank term loans 74,141,649 110,311,362 43,638,439 228,091,450
Total undiscounted financial liabilities 600,357,222 125,504,103 46,499,750 772,361,075
Financial guarantee contracts * 10,502,297 - - 10,502,297

Company
Trade payables 75,976,316 - - 75,976,316
Other payables, deposits and accruals 46,543,866 - - 46,543,866
Amount owing to immediate
holding company 3,069,756 - - 3,069,756
Amounts owing to subsidiary companies 56,345,778 - - 56,345,778
Amounts owing to related companies 21,891,707 - - 21,891,707
Amount owing to associated company 940,500 - - 940,500
Lease liabilities 7,815,567 3,252,694 - 11,068,261
Bank term loans 68,545,876 88,735,233 40,308,773 197,589,882
Total undiscounted financial liabilities 281,129,366 91,987,927 40,308,773 413,426,066
Financial guarantee contracts * 29,361,579 20,852,363 3,217,973 53,431,915

2021

Group
Trade payables 65,669,077 - - 65,669,077
Other payables, deposits and accruals 42,218,317 - - 42,218,317
Amount owing to immediate
holding company 2,663,082 - - 2,663,082
Amounts owing to related companies 16,501,689 - - 16,501,689
Amount owing to corporate shareholder
of subsidiary company 504,650 1,569,245 3,253,622 5,327,517
Lease liabilities 9,209,889 11,075,542 - 20,285,431
Bank term loans 31,278,604 125,114,414 101,828,002 258,221,020
Total undiscounted financial liabilities 168,045,308 137,759,201 105,081,624 410,886,133
Financial guarantee contracts * 12,985,599 - - 12,985,599

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

Liquidity and cash flow risks (Cont’d)

The table below summarises the maturity profile of the Group’s and the Company’s financial liabilities at 31
March based on the contractual undiscounted cash flows. (Cont’d)

Less than 1 More than 5

2021 year 1 to 5 years years Total
RM RM RM RM
Company
Trade payables 56,855,587 - - 56,855,587
Other payables, deposits and accruals 31,799,816 - - 31,799,816
Amount owing to immediate
holding company 2,663,082 - - 2,663,082
Amounts owing to subsidiary companies 51,986,778 - - 51,986,778
Amounts owing to related companies 16,501,689 - - 16,501,689
Lease liabilities 7,254,639 9,132,174 - 16,386,813
Bank term loans 25,682,831 102,731,322 94,858,559 223,272,712
Total undiscounted financial liabilities 192,744,422 111,863,496 94,858,559 399,466,477
Financial guarantee contracts * 18,393,663 25,790,146 2,577,764 46,761,573

* The management determined the fair value of the above financial guarantees to be not significant at their
initial recognition.

41. CAPITAL MANAGEMENT

The Group’s primary objectives when managing its capital are to safeguard the Group’s ability to continue
as a going concern and to provide adequate returns to shareholders whilst sustaining future development
of the business.

The Group actively and regularly reviews and manages its capital structure with a view to optimising the
debt and equity balance. The Group monitors capital on the basis of total debt to equity ratio. In order to
maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders,
issue new shares, increase borrowings or sell assets to reduce debts.

No changes were made in the objectives, policies or processes during the financial year.

The Group’s total debt-to-equity ratios at 31 March 2022 and 31 March 2021 were as follows:

2022 2021
RM RM
Share capital 100,801,317 100,801,317
Reserves 416,048,483 368,798,723
Total equity 516,849,800 469,600,040

Amount owing to corporate shareholder of subsidiary company 4,671,682 5,051,695
Bank term loans 217,711,741 246,475,977
Lease liabilities 28,553,135 19,721,937
Hire purchase payables 1,957,108 -
Total debt 252,893,666 271,249,609
Total debt to equity ratio (times) 0.49 0.58

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

42. SEGMENTAL ANALYSIS

(a) Primary reporting format - business segment

All the operations of the Group are organised into five main segments

(i) Air Freight Forwarding Division (“AFF”) - Air freight forwarding

(ii) Contract Logistics Division (“CLD”) - Customs forwarding, warehousing, in-plant and
container haulage
(iii) Trucking Division (“TD”) - Trucking
(iv) Ocean Freight Forwarding Division (“OFF”) - Sea freight forwarding and buyer consolidation
services
(v) Cold Supply Chain Division (“CSC”) - Cold supply chain

Segment assets and liabilities information are neither included in the internal management reports
nor provided regularly to the management. Hence no disclosures are made on segment assets and
liabilities.

2022 AFF CLD TD OFF CSC Consolidated

RM RM RM RM RM RM
REVENUE
External sales 512,656,903 428,579,320 84,619,664 319,708,355 135,848,304 1,481,412,546

Represented by:

Revenue
recognised at
a point of time 512,656,903 95,067,534 - 319,708,355 88,287,313 1,015,720,105

Revenue
recognised
over time - 333,511,786 84,619,664 - 47,560,991 465,692,441
Consolidated
revenue 512,656,903 428,579,320 84,619,664 319,708,355 135,848,304 1,481,412,546

Segment results 47,671,645 45,526,583 630,801 14,641,912 11,877,755 120,348,696

Unallocated
corporate income - - - - - (20,177,218)
Profit from operations - - - - - 100,171,478
Share of results of
associated company
and joint venture - - - - - 1,170,812
Finance costs - - - - - (13,195,827)
Profit before tax - - - - - 88,146,463
Tax expense - - - - - (20,425,502)
Profit for the
financial year - - - - - 67,720,961

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

42. SEGMENTAL ANALYSIS (CONT’D)

(a) Primary reporting format - business segment (Cont’d)

2022 AFF CLD TD OFF CSC Consolidated

RM RM RM RM RM RM
Included in operating profit:

Depreciation of property,
plant and equipment - - - - - 28,956,092
Depreciation of
right-of-use assets - - - - - 16,242,926
Allowance for doubtful debts - - - - - 425,210
Bad debts recovered - - - - - (15,998)
Gain on disposal of property,
plant and equipment - - - - - (1,167,713)
Property, plant and
equipment written off - - - - - 16,025,123
Fair value gain on
short term investments - - - - - (69,206)
Unrealised loss on foreign
exchange (net) - - - - - 744,720
Gain on early termination
of lease contracts - - - - - (31,894)

2021

REVENUE
External sales 288,599,102 342,466,535 71,784,276 117,759,164 126,003,090 946,612,167

Represented by:

Revenue
recognised at
a point of time 288,599,102 81,420,303 - 117,759,164 86,402,635 574,181,204

Revenue
recognised
over time - 261,046,232 71,784,276 - 39,600,455 372,430,963
Consolidated
revenue 288,599,102 342,466,535 71,784,276 117,759,164 126,003,090 946,612,167

Segment results 22,636,276 36,577,617 (2,034,896) 3,041,975 11,645,990 71,866,962

Unallocated
corporate income - - - - - 2,927,424
Profit from operations - - - - - 74,794,386
Share of results of
associated company
and joint ventures - - - - - 291,946
Finance costs - - - - - (14,396,928)
Profit before tax - - - - - 60,689,404
Tax expense - - - - - (17,020,092)
Profit for the
financial year - - - - - 43,669,312

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 ANNUAL REPORT 2022

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

42. SEGMENTAL ANALYSIS (CONT’D)

(a) Primary reporting format - business segment (Cont’d)

2021 AFF CLD TD OFF CSC Consolidated

RM RM RM RM RM RM
Included in operating profit:

Depreciation of property,
plant and equipment - - - - - 28,441,764
Depreciation
right-of-use assets - - - - - 11,071,947
Allowance for
doubtful debts - - - - - 362,401
Bad debts written off - - - - - 147,213
Gain on disposal of
property, plant and
equipment - - - - - (809,323)
Property, plant and
equipment written off - - - - - 194,208
Fair value gain on short term
investments - - - - - (108,626)
Unrealised loss on
foreign exchange (net) - - - - - 2,404,500
Gain on early termination
of lease contracts - - - - - (3,835)
Other investment written off - - - - - 18,000
Loss on disposal of other
assets - - - - - 42,000
Loss on derecognition
of subsidiary - - - - - 824,860

RM156.16 million or 10.5% (2021: RM135.9 million or 14.4%) of the Group’s revenue arising from a
single customer.

(b) Secondary reporting format - geographical segment

As the Group’s total logistics solutions activities cover destinations located throughout the world,
the directors do not consider it meaningful to allocate revenue and assets to specific geographical
segments.

43. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR

(i) On 21 April 2021, the Company announced that TYGC, a 70%-owned subsidiary of the Company,
had on 21 April 2021 entered into a conditional share sale agreement (“SSA”) for the acquisition of
1,285,000 ordinary shares in Hypercold, representing 50% equity interest in Hypercold, for a cash
consideration of RM10,550,000 (“Proposed Acquisition of Hypercold”).

In addition to the SSA, TYGC had on 21 April 2021 entered into a shareholders’ agreement with Swift
Integrated Logistics Sdn Bhd (“SILSB”) to regulate the affairs of Hypercold and the respective rights of
TYGC and SILSB as remaining 50% shareholder of Hypercold.

The Proposed Acquisition of Hypercold has been completed during the financial year.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2022

43. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (CONT’D)

(ii) During the current financial year, the Company has started the expansion plan by demolishing an old
single-storey warehouse block at Shah Alam Logistics Centre (“SALC”). The demolition has resulted
recognition of property, plant and equipment written off of RM16 million in profit or loss. Approximately
180,000 square foot of old single-storey warehouse space was demolished in Phase 1 of the SALC
expansion plan in order to rebuild into a modern 4-store warehouse of approximately 650,000 square
foot warehouse space, creating a net increase of approximately 470,000 square foot of warehouse
space. Phase 1 is expected to be completed by end of year 2023.

44. COVID-19 OUTBREAK

On 11 January 2021, the Government of Malaysia announced the re-imposition of Movement Control Order
(“MCO”) to the states of Malacca, Johor, Penang, Selangor, Sabah and the Federal Territories of Kuala
Lumpur, Putrajaya and Labuan from 13 January 2021 to 4 February 2021. The MCO is further extended
over all states (except Sarawak) from 5 February 2021 to 4 March 2021.

On 25 May 2021, the Government announced nationwide Full Movement Control Order (“FMCO”) on all
social and economic sectors in Malaysia from 1 June 2021 to 14 June 2021. Under FMCO, only essential
economic and social services listed by the National Security Council are allowed to operate. On 15 June
2021, the Government has implemented Phase 1 of the National Recovery Plan (“NRP”). The FMCO under
the NRP was extended from 15 June 2021 to 28 June 2021 and this was further extended from 29 June
2021 onwards. Subsequently, the Government had imposed Enhanced MCO (“EMCO”) in Selangor’s major
sub-districts and several Kuala Lumpur localities from 3 July 2021 and subsequently lifted on 16 July 2021.
On 1 October 2021, both Selangor and Kuala Lumpur moved from Phase 2 to Phase 3 of the NRP.

Various measures to prevent the spread of the virus such as restricted movement, overseas and interstate
travel bans, closure of businesses and education institutions and workfrom-home arrangements have
impacted consumer spending power and pattern and brought about significant economic uncertainties in
Malaysia.

The restrictions imposed have not, however, negatively impacted the Group’s financial performance as its
logistics operations were allowed to operate throughout the MCO under the respective guidelines set by the
National Security Council and the Ministry of International Trade and Industry.

At the reporting date, the Group and the Company have taken the appropriate steps to re-assess their
customers’ credit risks and tighten the credit controls in order to mitigate any risk of non-collection due from
the Covid-19 outbreak. Additional expected credit losses on receivables was recognised as at 31 March
2022 due to a foreseeable decline in the repayment ability of certain debtors.

Directors are cognizant of the challenges posed by these events and the potential impact they have on
the Group’s and the Company’s financial position, financial performance and cash flows subsequent to
the reporting period. As the situation continues to evolve with significant level of uncertainty, the Group
and the Company are unable to reasonably estimate the full financial impact of the Covid-19 outbreak for
financial year ending 31 March 2023. The Group and the Company are monitoring the situation closely
and to mitigate the financial impact. The Group and the Company are conscientiously managing its cost by
adopting an operating cost reduction strategy and conserving liquidity by working with major creditors to
align repayment obligations with receivable collections.

45. AUTHORISATION FOR ISSUE OF FINANCIAL STATEMENTS

These financial statements were authorised for issue on by the board of directors on 27 May 2022.

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 ANNUAL REPORT 2022

STATEMENT BY DIRECTORS
PURSUANT TO SECTION 251(2) OF THE COMPANIES ACT 2016

We, Lee Check Poh and Lee Wan Kai, being directors of TASCO Berhad, do hereby state that, in the opinion of
the directors, the accompanying financial statements set out on pages 101 to 176 are drawn up so as to give a
true and fair view of the financial position of the Group and of the Company at 31 March 2022 and the financial
performance and cash flows of the Group and of the Company for the financial year then ended in accordance
with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements
of the Companies Act 2016 in Malaysia.

Signed on behalf of the Board of Directors in accordance with a directors’ resolution.

LEE CHECK POH LEE WAN KAI

Director Director

Kuala Lumpur

Date: 27 May 2022

STATUTORY DECLARATION
PURSUANT TO SECTION 251(1)(b) OF THE COMPANIES ACT 2016

I, Tan Kim Yong (I/C No.: 620120-10-6609), being the director primarily responsible for the financial management of
TASCO Berhad do solemnly and sincerely declare that, to the best of my knowledge and belief, the accompanying
financial statements set out on pages 101 to 176 are correct, and I make this solemn declaration conscientiously
believing the same to be true and by virtue of the provisions of the Statutory Declarations Act 1960.

Subscribed and solemnly

declared by the abovenamed
Tan Kim Yong
at Kuala Lumpur TAN KIM YONG
in the Federal Territory Chartered Accountant
this 27 May 2022 MIA No: 8219

Before me: HJ. WAN AZMAN B.

HJ. WAN ABDULLAH
No. W728
Commisioner of Oath

177
178
No. Location Description Existing Tenure of land/Date Land Area/ Approximate Date Net Book value
Use of expiry of lease Built up Area Age of Acquired 31.03.2022
(sq. m) Properties (RM’000)
1. Westport Industrial Westport Logistics Leasehold 99 years Land - 54,807 15 years 1-Jun-18 126,028
Lot No. PT 128571, Jalan Perigi Nenas 7/2 Land Centre expiring 24.02.2097 Built-up - 30,907
Taman Perindustrial Pulau Indah (Westport)
42920 Pelabuhan Klang, Selangor
Lot No. PT 128572, Jalan Perigi Nenas 7/2 Industrial Westport Logistics Leasehold 99 years Land - 35,838 1-Jun-18
Taman Perindustrial Pulau Indah (Westport) Land Centre expiring 24.02.2097
42920 Pelabuhan Klang Selangor
ANNUAL REPORT 2022

Lot No. PT 128573, Jalan Perigi Nenas 7/2 Industrial Westport Logistics Leasehold 99 years Land - 17,481 1-Jun-18
LIST OF PROPERTIES

Taman Perindustrial Pulau Indah (Westport) Land Centre expiring 24.02.2097

42920 Pelabuhan Klang, Selangor
Lot No. PT 128574, Jalan Perigi Nenas 7/2 Industrial Westport Logistics Leasehold 99 years Land - 20,149 14 years 1-Jun-18
Taman Perindustrial Pulau Indah (Westport) Land Centre expiring 24.02.2097 Built-up - 6,770
42920 Pelabuhan Klang, Selangor
Lot No. PT 128575, Jalan Perigi Nenas 7/2 Industrial Westport Logistics Leasehold 99 years Land 13,038 15 years 1-Jun-18
Taman Perindustrial Pulau Indah (Westport) Land Centre expiring 24.02.2097 Built-up - 532
42920 Pelabuhan Klang, Selangor
Lot No. PT 128576, Jalan Perigi Nenas 7/2 Industrial Westport Logistics Leasehold 99 years Land - 18,622 1-Jun-18
Taman Perindustrial Pulau Indah (Westport) Land Centre expiring 24.02.2097
42920 Pelabuhan Klang, Selangor

2. Shah Alam Industrial Berjaya Industrial Freehold Land - 7,841 8 years 12-Jul-17 103,849
No. 1, Jalan Sungai Kayu Ara 32/37 Land Logistics Centre Built-up - 10,728
Berjaya Industrial Park, Section 32
40460 Shah Alam, Selangor
No. 3, Jalan Sungai Kayu Ara 32/40 Industrial Berjaya Industrial Freehold Land - 7,860 19 years 12-Jul-17
Berjaya Industrial Park, Section 32 Land Logistics Centre Built-up - 5,429
40460 Shah Alam, Selangor
No. 4, Jalan Sungai Kayu Ara 32/39 Industrial Berjaya Industrial Freehold Land - 7,860 16 years 12-Jul-17
Berjaya Industrial Park, Section 32 Land Logistics Centre Built-up - 4,949
40460 Shah Alam, Selangor
No. 5, Jalan Sungai Kayu Ara 32/40 Industrial Berjaya Industrial Freehold Land - 7,518 13 years 12-Jul-17
Berjaya Industrial Park, Section 32 Land Logistics Centre Built-up - 10,437
40460 Shah Alam, Selangor

3. Shah Alam Industrial Corporate Head Office, Leasehold 99 years Land - 92,701 33 years 30-Jun-09 50,643
Lot No. 1A, Land Shah Alam expiring 09.07.2094 Build-up - 26,718
Persiaran Jubli Perak Logistics Centre
Jalan 22/1, Seksyen 22,
40300 Shah Alam Warehouse F Build-up - 16,800 10 years
Selangor. Warehouse E Build-up - 16,800 9 years

4. Port of Tanjung Pelepas Industrial Tanjung Pelepas Leasehold 60 years Land - 20,233 7 years 19-Mar-12 31,833
Plot D28E, Distripark B Land Logistics Centre expiring 23.03.2055 Build-up - 20,919
Pelepas Free Trade Zone
Port of Tanjung Pelepas, Johor

5. Bandar Baru Bangi Industrial Bangi Logistics Centre III Leasehold 99 years Land - 60,241 25-May-04 24,805
Lot 46860 (PT 61382), Seksyen 10 Land Bangi Logistics Centre II expiring 19.08.2098 Build-up - 12,119 14 years
43650 Bandar Baru Bangi, Selangor Build-up - 19,584 11 years
Bandar Baru Bangi Access road Leasehold 99 years Land - 450 N/A 25-May-04 76
Lot 46864 (PT 61734), Seksyen 10 Industrial expiring 19.08.2098
43650 Bandar Baru Bangi, Selangor Land
 No. Location Description Existing Tenure of land/Date Land Area/ Approximate Date Net Book value
Use of expiry of lease Built up Area Age of Acquired 31.03.2021
(sq. m) Properties (RM’000)
6. Port Klang Industrial Warehouse Leasehold 60 years Land - 25,114 30 years 8-Jul-20 20,554
Lot 15728, Jalan Pelabuhan Utara Land expiring 15.05.2029 Build-up - 17,057
Bandar Sultan Suleiman
Pelabuhan Klang, Selangor.
Port Klang Leasehold 60 years Land - 16,592 44 years 8-Jul-20
Lot 506, Jalan Pelabuhan Utara expiring 18.06.2034 Build-up - 8,417
Bandar Sultan Suleiman
Pelabuhan Klang, Selangor.
8-Jul-20
Port Klang Leasehold 60 years Land - 18,210 44 years
Lot 507, Jalan Pelabuhan Utara expiring 18.06.2034 Build-up - 8,895
Bandar Sultan Suleiman
Pelabuhan Klang, Selangor.
24-Aug-20
Port Klang Leasehold 60 years Land - 2,287 50 years
Lot 9998, Jalan Pelabuhan Utara expiring 07.09.2082
Bandar Sultan Suleiman
Pelabuhan Klang, Selangor.
24-Aug-20
Port Klang Leasehold 99 years Land - 2,578
Lot 73156, Jalan Pelabuhan Utara expiring 11.10.2099
Bandar Sultan Suleiman
Pelabuhan Klang, Selangor
Port Klang Leasehold 99 years Land - 493 24-Aug-20
Lot 73157, Jalan Pelabuhan Utara expiring 11.10.2099
Bandar Sultan Suleiman
Pelabuhan Klang, Selangor.
Port Klang Leasehold 99 years Land - 955 24-Aug-20
Lot 73158, Jalan Pelabuhan Utara expiring 11.10.2099
Bandar Sultan Suleiman
Pelabuhan Klang, Selangor.

7. Port Klang Industrial Port Klang Container Leasehold 99 years Land - 24,068 21 years 2-Feb-18 13,921
Lot 2, Solok Sultan Hishamuddin 10 Land Depot expiring 09.06.2086 Built-up - 57.6
Kawasan Perindustrian Selat Klang Utara
42000 Port Klang, Selangor

8. Seberang Perai Tengah Industrial Penang Prai Logistics Leasehold 99 years Land - 20,639 30 years 18-Jun-08 11,502
1441 Lorong Perusahaan Maju 8 Land Centre expiring 23.10.2110 Build-up - 9,282
Prai Industrial Estate, Phase 4
13600 Prai, Pulau Pinang

9. Port Klang Industrial Port Klang Logistics Leasehold 99 years Land - 29,509 30 years 19-Feb-08 9,347
Lot 22 (PT4153), Lengkungan Sultan Land Centre expiring 09.06.2086 Build-up - 17,078
Hishamuddin, North Klang Straits Industrial
Estate Mukim Kapar, Kawasan 20
40000 Port Klang, Selangor
10. Bayan Lepas Industrial Penang Air Freight Leasehold 60 years Land - 8,146 15 years 4-Jun-08 5,961
Plot 93 Lintang Bayan Lepas 9 Land Logistics Centre expiring 31.01.2062 Build-up - 3,040
Taman Perindustrian Bayan Lepas
Fasa IV, 11900 Bayan Lepas
ANNUAL REPORT 2022

Pulau Pinang
LIST OF PROPERTIES

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ANALYSIS OF SHAREHOLDINGS
AS AT 30 JUNE 2022

Issued and Fully paid-up Capital : RM100,801,317

Class of Shares : Ordinary Shares
Voting Rights : One vote per ordinary share

DISTRIBUTION OF SHAREHOLDINGS

Size of Shareholdings No. of Holders Total Holdings %

Less than 100 shares 37 692 0.00
100 to 1,000 shares 673 483,610 0.06
1,001 to 10,000 shares 2,871 14,986,300 1.87
10,001 to 100,000 shares 1,489 49,705,497 6.21
100,001 to less than 5% of issued shares 262 333,146,933 41.64
5% and above issued shares 4 401,676,968 50.21
Total 5,336 800,000,000 100.00

LIST OF 30 LARGEST SHAREHOLDERS

Name of Shareholders No. of shares %

1 Yusen Logistics (Singapore) Pte Ltd 145,841,928 18.23
2 Yusen Logistics Co., Ltd 144,078,544 18.01
3 Yusen Logistics Co., Ltd 59,039,768 7.38
4 Nippon Yusen Kabushiki Kaisha 52,716,728 6.59
5 Real Fortune Portfolio Sdn Bhd 32,500,000 4.06
6 CIMSEC Nominees (Tempatan) Sdn Bhd
CIMB For Real Fortune Portfolio Sdn Bhd (PB) 30,643,504 3.83
7 Nippon Yusen Kabushiki Kaisha 24,000,000 3.00
8 Yusen Logistics (Singapore) Pte Ltd 24,000,000 3.00
9 Yusen Logistics Co., Ltd 24,000,000 3.00
10 Yusen Logistics Co., Ltd 24,000,000 3.00
11 Yusen Logistics (Singapore) Pte Ltd 22,079,528 2.76
12 Real Fortune Portfolio Sdn Bhd 16,000,000 2.00
13 Maybank Nominees (Tempatan) Sdn Bhd
National Trust Fund 10,501,400 1.31
14 CIMB Group Nominees (Tempatan) Sdn Bhd
Exempt An For Petroliam Nasional Berhad 6,254,300 0.78
15 Tokio Marine Life Insurance Malaysia Bhd
As Beneficial Owner 6,065,000 0.76
16 Lembaga Tabung Angkatan Tentera 6,014,800 0.75
17 HSBC Nominees (Tempatan) Sdn Bhd
HSBC (M) Trustee Bhd for Pertubuhan Keselamatan Social 5,000,000 0.63
18 Maybank Nominees (Tempatan) Sdn Bhd
Medical Fund 4,889,200 0.61
19 RHB Nominees (Tempatan) Sdn Bhd
Pledged Securities Account for Siao Choon Ping 4,303,500 0.54
20 CIMB Group Nominees (Tempatan) Sdn Bhd
OSK Technology Ventures Sdn Bhd 2,918,700 0.36
21 Alliancegroup Nominees (Tempatan) Sdn Bhd
Pledged Securities Account for Bakat Impian Sdn Bhd 2,463,700 0.31
22 Citigroup Nominees (Asing) Sdn Bhd
USB AG 2,209,300 0.28

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ANALYSIS OF SHAREHOLDINGS
AS AT 30 JULY 2022

LIST OF 30 LARGEST SHAREHOLDERS (CONT’D)

Name of Shareholders No. of shares %

23 Amanahraya Trustee Berhad
Affin Hwang Growth Fund 2,071,200 0.26
24 Ong Ee Nah 2,000,000 0.25
25 Tajukon Sdn Bhd 2,000,000 0.25
26 Yeo Khee Huat 1,940,000 0.24
27 Citigroup Nominees (Tempatan) Sdn Bhd
Employees Provident Fund Board 1,829,800 0.23
28 Sow Tiap 1,792,000 0.22
29 Universal Trustee (Malaysia) Berhad
KAF Tactical Fund 1,700,000 0.21
30 Amanah Trustee Berhad
Affin Hwang Principled Growth Fund 1,597,500 0.20
Total 664,450,400 83.05

SUBSTANTIAL SHAREHOLDERS

The details of the substantial shareholders of our Company and their respective shareholdings in our Company
as per the Register of Substantial Shareholders are as follows:

Name of Substantial Shareholders Direct Indirect

Interest % Interest %
1 Yusen Logistics Co., Ltd. 251,118,312 31.38 191,921,4561 23.99
2 Yusen Logistics (Singapore) Pte Ltd 191,921,456 23.99 - -
3 Nippon Yusen Kabushiki Kaisha 76,716,728 9.59 443,039,7682 55.38
4 Real Fortune Portfolio Sdn Bhd 79,143,504 9.89 - -
5 Lee Check Poh - - 79,143,5043 9.89

DIRECTORS’ SHAREHOLDINGS

In accordance with the Register of Directors’ Shareholdings, the Directors’ direct and indirect interests in share in
the Company are as follows:

Name of Directors Direct Indirect
Interest % Interest %
1 Lee Check Poh - - 79,143,5043 9.89
2 Lim Jew Kiat 480,000 0.06 - -
3 Tan Kim Yong 240,000 0.03 - -
4 Kwong Hoi Meng 88,000 0.01 - -
5 Raymond Cha Kar Siang 88,000 0.01 - -
6 Raippan s/o Yagappan @ Raiappan Peter 88,000 0.01 - -
7 Lee Wan Kai 80,000 0.01 - -

1 Deemed interested by virtue of its equity interest in Yusen Logistics (Singapore) Pte Ltd pursuant to Section 8 of the Act,
2 Deemed interested by virtue of its subsidiaries companuies, Yusen Logistics Co., Ltd and Yusen Logistics (Singapore) Pte Ltd’s equity interest
in our Company pursuant to Section 8 of the Act
3 Deemed interested by virtue of its equity interest in Real Fortune Portfolio Sdn Bhd pursuant to Section 8 of the Act

181
 ANNUAL REPORT 2022

SUBSIDIARY AND ASSOCIATED COMPANIES

SUBSIDIARY COMPANIES

Group
Effective Interest
% %
Country 31.03.2022 31.03.2021 Principal Activities

Baik Sepakat Sdn Bhd Malaysia 100 100 Truck rental and insurance agency
services

Tunas Cergas Logistik Sdn Bhd Malaysia 100 100 Truck rental and provision of other
related logistics services

Emulsi Teknik Sdn Bhd Malaysia 100 100 Truck rental and logistics services

Maya Kekal Sdn Bhd Malaysia 100 100 Trading and warehousing

Precious Fortunes Sdn Bhd Malaysia 100 100 Warehousing

Titian Pelangi Sdn Bhd Malaysia 100 100 Warehousing

TASCO Yusen Gold Cold Sdn Bhd Malaysia 70 70 Investment holding

Meriah Selalu Sdn Bhd Malaysia 100 100 Operating container depot and
providing services of storing,
handling, cleaning and repairing of
containers

Omega Saujana Sdn Bhd Malaysia 51 51 Freight forwarding services

Piala Kristal (M) Sdn Bhd Malaysia 51 51 Freight forwarding services

SUBSIDIARY OF TASCO YUSEN GOLD COLD SDN BHD

Gold Cold Integrated Malaysia 100 100 Transportation, cold room storage
Logistics Sdn Bhd facilities, repackaging and value
added facilities services

Gold Cold Solutions Sdn Bhd Malaysia 100 100 Logistics services, transportation,
warehousing distribution and
marketing of goods

Gold Cold Transport Sdn Bhd Malaysia 100 100 Transportation, provision of cold
room facilities, repackaging and
value added facilities services

182
 ANNUAL REPORT 2022

SUBSIDIARY AND ASSOCIATED COMPANIES

SUBSIDIARY COMPANIES (CONT’D)

Group
Effective Interest
% %
Country 31.03.2022 31.03.2021 Principal Activities

SUBSIDIARY OF TASCO YUSEN GOLD COLD SDN BHD (CONT’D)

GC Logistics Sdn Bhd Malaysia 100 100 Transportation, cold room storage
facilities, repackaging and value
added facilities services

JOINT VENTURE COMPANY OF TASCO YUSEN GOLD COLD SDN BHD

Hypercold Logistics Sdn Bhd Malaysia 50 - Forwarding, logistics, chilled and

frozen storage, transportation of
goods and a distributor of all kind of
foods

ASSOCIATED COMPANY

Agate Electro Supplies Sdn Bhd Malaysia 50 50 Letting of property

JOINT VENTURE COMPANY

YLTC Sdn Bhd Malaysia 40 40 Trading, distribution and logistics

183
 ANNUAL REPORT 2022

NOTICE OF FORTY-SEVENTH ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN THAT the Forty-Seventh Annual General Meeting (“AGM”) of TASCO Berhad
(“Company”) will be conducted entirely on a virtual basis at a venue in Malaysia where the Chairman of the
meeting is present through live streaming and online remote voting via Remote Participation and Electronic
Voting Facilities to be provided by SS E Solutions Sdn Bhd via Securities Services e-Portals platform at
https://sshsb.net.my/ on Wednesday, 7 September 2022 at 3.00 p.m. to transact the following businesses: -

AGENDA
1. To receive the Audited Financial Statements for the financial year ended 31 March 2022 Please refer to
and the Reports of Directors and Auditors thereon. Explanatory Note A

2. To approve the payment of the following Directors’ remuneration by the Company:

(a) To approve the payment of Directors’ fees of RM400,000 for the period from Ordinary Resolution 1
8 September 2022 until the next Annual General Meeting of the Company.

(b) To approve the payment of Directors’ benefits (excluding Directors’ fees) to Ordinary Resolution 2
the Non-Executive Directors up to an amount of RM25,000 from 8 September
2022 until the next Annual General Meeting of the Company.

3. To re-elect the following Directors who retire pursuant to Article 79 of the Company’s
Constitution: -

3.1 Mr. Lee Check Poh Ordinary Resolution 3

3.2 Mr. Raymond Cha Kar Siang Ordinary Resolution 4
3.3 Mr. Norihiko Yamada Ordinary Resolution 5

4. To re-appoint Mazars PLT as Auditors of the Company and authorise the Directors Ordinary Resolution 6
to determine their remuneration.

5. PROPOSED RETENTION OF INDEPENDENT NON-EXECUTIVE DIRECTOR

As Special Business to consider and if thought fit, to pass the following Ordinary
Resolution, with or without modifications: -

“THAT Mr. Raippan s/o Yagappan @ Raiappan Peter who has served the Board as Ordinary Resolution 7
an Independent Non-Executive Director of the Company for a cumulative term of
more than nine (9) years be and is hereby retained as Independent Non-Executive
Director of the Company.”

“THAT subject to the passing of the Ordinary Resolution 4 above, Mr. Raymond Cha Ordinary Resolution 8
Kar Siang who has served the Board as an Independent Non-Executive Director of
the Company for a cumulative term of more than nine (9) years be and is hereby
retained as Independent Non-Executive Director of the Company.”

“THAT Mr. Kwong Hoi Meng who has served the Board as an Independent Non- Ordinary Resolution 9
Executive Director of the Company for a cumulative term of more than nine (9) years
be and is hereby retained as Independent Non-Executive Director of the Company.”

6. PROPOSED RENEWAL OF SHAREHOLDERS’ MANDATE FOR RECURRENT

RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

As Special Business to consider and if thought fit, to pass the following Ordinary
Resolution, with or without modifications: -

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 ANNUAL REPORT 2022

NOTICE OF FORTY-SEVENTH ANNUAL GENERAL MEETING

“THAT pursuant to Paragraph 10.09 of the Bursa Malaysia Securities Berhad Main Ordinary Resolution 10
Market Listing Requirements, the Company and its subsidiaries be and are hereby
authorised to enter into and give effect to the Recurrent Transactions with the
Related Party as detailed in Section 2.3.2 of the Circular to Shareholders dated 28
July 2022 which are necessary for the Company’s and its subsidiaries’ day-to-day
operations in the ordinary course of business on terms not more favourable to the
said Related Party than those generally available to the public and not detrimental
to minority shareholders of the Company.

AND THAT such approval shall continue to be in force until: -

(a) the conclusion of the next Annual General Meeting (“AGM”) of the Company, at
which time it will lapse, unless by a resolution passed at the AGM whereby the
authority is renewed; or

(b) the expiration of the period within which the next AGM of the Company is
required to be held pursuant to Section 340(1) of the Companies Act 2016
(“Act”) (but shall not extend to such extension as may be allowed pursuant to
Section 340(2) of the Act); or

(c) revoked or varied by a resolution passed by the shareholders in a general

meeting;

whichever is earlier;

AND THAT the Directors of the Company be and are hereby authorised to complete
and do all such acts and things as they may consider expedient or necessary to give
effect to the Proposed Renewal of Shareholders’ Mandate for Recurrent Related
Party Transactions of a revenue or trading nature.”

7. AUTHORITY TO ALLOT SHARES

As Special Business to consider and if thought fit, to pass the following Ordinary
Resolution, with or without modifications: -

“THAT subject always to the Companies Act 2016 (“Act”) and the approvals of the Ordinary Resolution 11
relevant governmental and/or regulatory authorities, the Directors be and are hereby
authorised pursuant to Section 75 of the Act to allot shares in the Company at any
time until the conclusion of the next Annual General Meeting upon such terms and
conditions and for such purposes that the Directors may in their absolute discretion
deem fit provided that the aggregate number of shares to be issued pursuant to this
Resolution does not exceed 10% of the issued share capital of the Company for the
time being.”

8. To transact any other business which due notice shall have been received.

BY ORDER OF THE BOARD

KANG SHEW MENG (CCM PC 201908002065)

SEOW FEI SAN (CCM PC 201908002299)
Secretaries

Petaling Jaya
Dated: 28 July 2022

185
 ANNUAL REPORT 2022

NOTICE OF FORTY-SEVENTH ANNUAL GENERAL MEETING

Notes:

1. The 47th AGM of the Company will be conducted entirely on a virtual basis through live streaming and online remote voting via Remote
Participation and Electronic Voting (“RPEV”) facilities to be provided by SS E Solutions Sdn. Bhd. via Securities Services e-Portal’s
platform at https://sshsb.net.my/. Please follow the procedures provided in the Administrative Guide for the AGM in order to register,
participate, speak and vote remotely.

2. With the RPEV facilities, the members, proxies and/or corporate representatives are strongly encouraged to exercise your right to
participate (including to pose questions to the Chairman, Board of Directors or Management) and vote at the AGM.

As guided by the Securities Commission Malaysia’s Guidance Note and Frequently Asked Questions on the Conduct of General
Meetings for Listed Issuers, the right to speak is not limited to verbal communication only but includes other modes of expression.

Therefore, all members, proxies and/or corporate representatives shall communicate with the main venue of the AGM via real time
submission of typed texts through a text box within Securities Services e-Portal’s platform during the live streaming of the AGM as
the primary mode of communication. In the event of any technical glitch in this primary mode of communication, members, proxies
or corporate representatives may email their questions to [email protected] during the AGM. The questions and/or remarks
submitted by the members, proxies and/or corporate representatives will be responded by the Chairman, Board of Directors and/or
Management during the Meeting.

3. Only depositors whose name appears in the Record of Depositors as at 30 August 2022 shall be regarded as members and entitled
to participate, speak and vote at the AGM.

4. A member entitled to participate, speak and vote at the meeting is entitled to appoint a proxy to participate, speak and vote in his stead.
A proxy need not be a member of the Company and a member may appoint any persons to be his proxy.

5. A member shall be entitled to appoint not more than two (2) proxies to attend and vote at the AGM. Where a member appoints two (2)
proxies, the appointment shall be invalid unless the member specifies the proportions of his holding to be represented by each proxy.
Where a member of the Company is an authorised nominee as defined under the Central Depositors Act, it may appoint at least one (1)
proxy but not more than two (2) proxies in respect of each securities account it holds with ordinary shares of the Company standing to the
credit of the said Securities Account. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in
the Company for multiple beneficial owners in one securities account (omnibus account), there is no limit to the number of proxies which
the exempt authorised nominee may appoint in respect of each omnibus account it holds.

6. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing, or if the
appointer is a corporation, either under its Common Seal or under the hand of its officer or attorney duly authorised.

7. The appointment of proxy may be made in a hard copy form or by electronic means, not less than forty-eight (48) hours before the time
for holding the AGM, as follows:

(a) In hard copy form

The original instrument appointing a proxy (“Proxy Form”) and the power of attorney or other authority (if any), under which
it is signed or a notarially certified copy thereof, must be deposited at the office of the Share Registrar, Securities Services
(Holdings) Sdn Bhd (Registration No. 197701005827 (36869T)) at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar
Damansara, Damansara Heights, 50490 Kuala Lumpur, or to be submitted via fax at +603 2094 9940 or +603 2095 0292 or
emailed to [email protected].

(b) By electronic means

The Proxy Form can also be lodged electronically with the Share Registrar of the Company through Securities Services (Holdings)
Sdn Bhd’s Online Portal at https://sshsb.net.my/ or email to [email protected]. Please follow the procedures in the
Administrative Guide for the AGM in order to deposit the Proxy Form(s) electronically.

8. If you have submitted your Proxy Form(s) and subsequently decide to appoint another person or wish to participate in our electronic AGM
by yourself, please write in to [email protected] to revoke the earlier appointed proxy forty-eight (48) hours before this meeting.

9. Pursuant to Paragraph 8.29A(1) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the ordinary resolutions
set out in the Notice of AGM will be put to vote by way of poll.

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 ANNUAL REPORT 2022

NOTICE OF FORTY-SEVENTH ANNUAL GENERAL MEETING

10. Explanatory Notes:

Note A - The shareholders’ approval on the Audited Financial Statements are not required pursuant to Section 340(1) of the Companies
Act 2016 (“Act”), hence, the matter will not be put for voting.

Ordinary Resolutions 1 and 2

Proposed Payment of Directors’ Fees
Proposed Payment of Directors’ Benefits to Non-Executive Directors

Pursuant to Section 230(1) of the Act, the fees of the directors and any benefits payable to the directors of a listed company and its
subsidiaries shall be approved at a general meeting. In this respect, the Board agreed that the shareholders’ approval shall be sought at
the Forty-Seventh AGM on the Directors’ fees and benefits in two (2) separate resolutions as below: -

• Ordinary Resolution 1 on payment of Directors’ fees for the period from 8 September 2022 until the next AGM of the Company; and
• Ordinary Resolution 2 on payment of Directors’ benefits (excluding Directors’ fees) from 8 September 2022 until the next AGM of the
Company.

The Directors’ benefits of the Company which is estimated not to exceed RM25,000 is basically the meeting allowances for Board/Board
Committee meetings attended/to be attended for the period from 8 September 2022 until the conclusion of the next AGM. The Board will
seek shareholders’ approval at the next AGM in the event the amount of the Directors’ benefits is insufficient due to an increase in Board/
Board Committee meetings and/or increase in Board size.

Details of the Directors’ fees and benefits paid to the Independent Non-Executive Directors are disclosed in the Company’s Corporate
Governance Overview Statement as contained in the Annual Report 2022.

Ordinary Resolutions 7 to 9
Proposed Retention of Independent Non-Executive Directors

The Proposed Ordinary Resolutions 7 to 9, if passed, will enable Mr. Raippan s/o Yagappan @ Raiappan Peter, Mr. Raymond Cha Kar
Siang and Mr. Kwong Hoi Meng to continue serving as the Independent Non-Executive Directors of the Company as recommended under
Malaysian Code on Corporate Governance (“MCCG”).

Their term of office as independent directors is calculated based on the listing date of the Company on 28 December 2007.

An assessment of the independence of all Independent Directors was undertaken as part of the Board’s assessment in 2021. The
Board of Directors has considered the results of the independence assessment of Mr. Raippan s/o Yagappan @ Raiappan Peter, Mr.
Raymond Cha Kar Siang and Mr. Kwong Hoi Meng, which was undertaken pursuant to the guidelines as set out in the Main Market Listing
Requirements of Bursa Malaysia Securities Berhad and MCCG, and are satisfied that they meet the guidelines for independence and
their ability to exercise independent judgement. Therefore, the Board recommends that Mr. Raippan s/o Yagappan @ Raiappan Peter,
Mr. Raymond Cha Kar Siang and Mr. Kwong Hoi Meng should be retained as the Independent Non-Executive Directors of the Company.

Ordinary Resolution 10
Proposed Shareholders’ Mandate for Recurrent Transactions

The proposed Ordinary Resolution 10, if passed, will allow the Company and/or its subsidiaries to enter into Recurrent Transactions
involving the interests of Related Parties, which are of a revenue or trading nature and necessary for the Group’s day-to-day operations,
subject to the transactions being carried out in the ordinary course of business and on terms not to the detriment of the minority
shareholders of the Company.

Ordinary Resolution 11
Authority to Allot Shares

At last year’s Annual General Meeting, mandate was given to Directors to allot no more than 10% of the issued share capital of the
Company. However, the mandate was not utilised and accordingly will lapse at the forthcoming Annual General Meeting. As such, the
Board would like to seek for a renewal of the mandate.

The proposed Ordinary Resolution 11, if passed, will empower the Directors of the Company to allot not more than 10% of the issued
share capital of the Company subject to the approvals of all the relevant governmental and/or other regulatory bodies and for such
purposes as the Directors consider would be in the interest of the Company.

The authority will provide flexibility to the Company for any possible fund raising activities, including but not limited to further placing of
shares, repayment of bank borrowing(s), if any, for purpose of funding future investment project(s), working capital and/or acquisitions.

187
THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK
 PROXY FORM
CDS Account No.
TASCO Berhad
(Registration No. 197401003124 (20218-T)) No. of Shares held
(Incorporated in Malaysia)

I/We______________________________________________________________________Tel:____________________________
(Full name in block, and as per NRIC/Passport/Company No.)

of_______________________________________________________________________________________________________
(Full Address)

being a member/members of TASCO BERHAD hereby appoint:

Full Name (in Block and as per NRIC/Passport) NRIC/Passport No. Proportion of Shareholdings
No. of Shares %
Address Contact:
Email:

and

Full Name (in Block and as per NRIC/Passport) NRIC/Passport No. Proportion of Shareholdings
No. of Shares %
Address Contact:
Email:

or failing him/her, the Chairman of the meeting as my/our proxy to vote for me/us on my/our behalf at the Forty-Seventh Annual
General Meeting (“AGM”) of TASCO Berhad (“Company”) will be conducted entirely on a fully virtual basis at a venue in Malaysia
where the Chairman of the meeting is present through live streaming and online remote voting via Remote Participation and
Electronic Voting (“RPEV”) facilities to be provided by SS E Solutions Sdn. Bhd. via Securities Services e-Portal’s platform at https://
sshsb.net.my/ on Wednesday, 7 September 2022 at 3.00 p.m. and at any adjournment thereof and to vote as indicated below.
The proxy is to vote on the Resolutions set out in the Notice of the Meeting as indicated with an “X” in the appropriate places. If
no specific direction as to voting is given, the proxy will vote or abstain from voting at his discretion, as he will on any other matter
arising at the Meeting.

Items RESOLUTIONS FOR AGAINST

1. To approve the payment of Directors’ fees of RM400,000 for the period from 8 September
2022 until the next Annual General Meeting of the Company.
2. To approve the payment of Directors’ benefits (excluding Directors’ fees) to the Non-
Executive Directors up to an amount of RM25,000 from 8 September 2022 until the next
Annual General Meeting of the Company.
3. To re-elect Mr. Lee Check Poh who retires pursuant to Article 79 of the Company’s
Constitution.
4. To re-elect Mr. Raymond Cha Kar Siang who retires pursuant to Article 79 of the Company’s
Constitution.
5. To re-elect Mr. Norihiko Yamada who retires pursuant to Article 79 of the Company’s
Constitution.
6. To re-appoint Mazars PLT as Auditors of the Company and authorise the Directors to
determine their remuneration.
AS SPECIAL BUSINESS
7. Proposed Retention of Mr. Raippan s/o Yagappan @ Raiappan Peter as Independent Non-
Executive Director.
8. Proposed Retention of Mr. Raymond Cha Kar Siang as Independent Non-Executive
Director.
9. Proposed Retention of Mr. Kwong Hoi Meng as Independent Non-Executive Director.
10. Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of
a Revenue or Trading Nature.
11. Authority to allot shares.

Dated:

_________________________________________
Signature/Common Seal of Shareholder (s)
 Fold this flap for sealing

Notes:-
1. The 47th AGM of the Company will be conducted entirely on a virtual basis through live streaming and of the said Securities Account. Where a member of the Company is an exempt authorised nominee which holds
online remote voting via Remote Participation and Electronic Voting (“RPEV”) facilities to be provided by SS ordinary shares in the Company for multiple beneficial owners in one securities account (omnibus account),
E Solutions Sdn. Bhd. via Securities Services e-Portal’s platform at https://sshsb.net.my/. Please follow the there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each
procedures provided in the Administrative Guide for the AGM in order to register, participate, speak and vote omnibus account it holds.
remotely.
6. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly
2. With the RPEV facilities, the members, proxies and/or corporate representatives are strongly encouraged authorised in writing, or if the appointer is a corporation, either under its Common Seal or under the hand of its
to exercise your right to participate (including to pose questions to the Chairman, Board of Directors or officer or attorney duly authorised.
Management) and vote at the AGM.
7. The appointment of proxy may be made in a hard copy form or by electronic means, not less than forty-eight (48)
As guided by the Securities Commission Malaysia’s Guidance Note and Frequently Asked Questions on the hours before the time for holding the AGM, as follows:
Conduct of General Meetings for Listed Issuers, the right to speak is not limited to verbal communication only
but includes other modes of expression. (a) In hard copy form

Therefore, all members, proxies and/or corporate representatives shall communicate with the main venue The original instrument appointing a proxy (“Proxy Form”) and the power of attorney or other authority
of the AGM via real time submission of typed texts through a text box within Securities Services e-Portal’s (if any), under which it is signed or a notarially certified copy thereof, must be deposited at the office
platform during the live streaming of the AGM as the primary mode of communication. In the event of any of the Share Registrar, Securities Services (Holdings) Sdn Bhd (Registration No. 197701005827
technical glitch in this primary mode of communication, members, proxies or corporate representatives may (36869T)) at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara
email their questions to [email protected] during the AGM. The questions and/or remarks submitted by Heights, 50490 Kuala Lumpur, or to be submitted via fax at +603 2094 9940 or +603 2095 0292 or
the members, proxies and/or corporate representatives will be responded by the Chairman, Board of Directors emailed to [email protected].
and/or Management during the Meeting.
(b) By electronic means
3. Only depositors whose name appears in the Record of Depositors as at 30 August 2022 shall be regarded as
members and entitled to participate, speak and vote at the AGM. The Proxy Form can also be lodged electronically with the Share Registrar of the Company through Securities
Services (Holdings) Sdn Bhd’s Online Portal at https://sshsb.net.my/ or email to [email protected].
4. A member entitled to participate, speak and vote at the meeting is entitled to appoint a proxy to participate, Please follow the procedures in the Administrative Guide for the AGM in order to deposit the Proxy Form(s)
speak and vote in his stead. A proxy need not be a member of the Company and a member may appoint any electronically.
persons to be his proxy.
8. If you have submitted your Proxy Form(s) and subsequently decide to appoint another person or wish to
5. A member shall be entitled to appoint not more than two (2) proxies to attend and vote at the AGM. Where a participate in our electronic AGM by yourself, please write in to [email protected] to revoke the earlier
member appoints two (2) proxies, the appointment shall be invalid unless the member specifies the proportions appointed proxy forty-eight (48) hours before this meeting.
of his holding to be represented by each proxy. Where a member of the Company is an authorised nominee
as defined under the Central Depositors Act, it may appoint at least one (1) proxy but not more than two (2) 9. Pursuant to Paragraph 8.29A(1) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad,
proxies in respect of each securities account it holds with ordinary shares of the Company standing to the credit the ordinary resolutions set out in the Notice of AGM will be put to vote by way of poll.

Then fold here

Affix
Stamp

TASCO BERHAD
Registration No. 197401003124 (20218-T)
C/O SECURITIES SERVICES (HOLDINGS) SDN. BHD.
LEVEL 7, MENARA MILENIUM,
JALAN DAMANLELA,
PUSAT BANDAR DAMANSARA,
DAMANSARA HEIGHTS,
50490 KUALA LUMPUR

First fold here

 Shell
Station
Petron
Station

NIPPON ELECTRIC GLASS

Panasonic
ideas for life

NIPPON PAINT
COURTS
SEKSYEN 22
C

AMBANK

TASCO Berhad 197401003124 (20218-T)

HONG LEONG Corporate Head Office/Shah Alam Logistics Centre
BANK Lot No. 1A, Persiaran Jubli Perak
Jalan 22/1, Seksyen 22
40300 Shah Alam
Selangor Darul Ehsan, Malaysia
SEKSYEN 15 TEL: 603-5101 8888
FAX: 603-5548 8288