MN Holdings Berhad - Prospectus - Part 2

Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
12. FINANCIAL INFORMATION
12.1 HISTORICAL FINANCIAL INFORMATION
Our Company was incorporated in Malaysia on 26 November 2020 under the Act as a public
limited company. Our historical financial information throughout the FYE 2018 to 2021 and
FPE 2022 have been prepared in accordance with MFRS. Additionally, the unaudited
financial information for FPE 2021 has been prepared for comparison purpose only. The
selected financial information included in this Prospectus is not intended to predict our
Group's financial position, results or cash flows.
We were incorporated as a special purpose vehicle to facilitate the listing of our subsidiaries,
MNSB and MPTSB on the ACE Market. We completed the Acquisitions. MNSB and MPTSB are
assumed to be under common control with our Group since their incorporation and prior to
the Acquisitions. As such, the historical financial information of our Group for FYE 2018 to
2021, FPE 2021 and FPE 2022 is presented based on the combined audited financial
statements of our Group.
12.1.1 Historical combined statements of comprehensive income
The following table sets out a summary of our combined statements of comprehensive
income of our Group for FYE 2018 to 2021 and FPE 2022 as well as the historical combined
unaudited statements of our Group for the FPE 2021 which have been extracted from the
Accountants’ Report. It should be read in conjunction with the "Management's Discussion
and Analysis of Financial Condition and Results of Operations" and the Accountants' Report
set out in Sections 12.2 and 13 respectively.
Audited
FYE 2018 FYE 2019 FYE 2020 FYE 2021
RM’000 RM’000 RM’000 RM’000
Revenue 51,754 65,676 68,008 115,200
Cost of sales (36,119) (49,096) (50,691) (90,139)
GP 15,635 16,580 17,317 25,061
Other income 453 82 804 858
Administrative expenses (3,472) (4,688) (5,331) (7,895)
Other expenses (1,605) (2,174) (3,016) (3,293)
Net impairment losses on financial (786) (592) (1,440) (3,549)
assets and contract assets
Profit from operation 10,225 9,208 8,334 11,182
Finance costs (280) (495) (676) (644)
PBT 9,945 8,713 7,658 10,538
Income tax expense (2,578) (2,346) (1,996) (2,409)
Total other comprehensive 7,367 6,367 5,662 8,129
income/PAT
EBIT(1) 10,120 9,150 8,254 11,127

EBITDA(1) 12,409 11,916 12,668 17,826
GP margin (%)(2) 30.21 25.25 25.46 21.75
PBT margin (%)(3) 19.22 13.27 11.26 9.15
PAT margin (%)(3) 14.23 9.69 8.33 7.06
Basic EPS (sen)(4) 2.25 1.95 1.73 2.49
Diluted EPS (sen)(5) 1.80 1.56 1.39 1.99
229
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
12. FINANCIAL INFORMATION (Cont’d)
Unaudited Audited
FPE 2021 FPE 2022
RM’000 RM’000
Revenue 29,972 33,981
Cost of sales (23,625) (25,846)
GP 6,347 8,135
Other income 294 226
Administrative expenses (2,127) (2,959)
Other expenses (1,024) (1,118)
Net impairment losses on financial (1,213) (415)
Profit from operation 2,277 3,869
Finance costs (164) (139)
PBT 2,113 3,730
Income tax expense (552) (686)
Total other comprehensive 1,561 3,044
income/PAT
EBIT(1) 2,273 3,855

EBITDA(1) 4,507 5,387
GP margin (%)(2) 21.18 23.94
PBT margin (%)(3) 7.05 10.98
PAT margin (%)(3) 5.21 8.96
Basic EPS (sen)(4) 0.48 0.93
Diluted EPS (sen)(5) 0.38 0.74
Notes:
(1) EBIT and EBITDA are calculated as follows:
EBIT is calculated as profit before interest income, finance costs, taxes, and
amortisation.
The rest of this page is intentionally left blank
230
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
Audited Unaudited Audited

FYE 2018 FYE 2019 FYE 2020 FYE 2021 FPE 2021 FPE 2022
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
PAT 7,367 6,367 5,662 8,129 1,561 3,044

Less:
Interest income (105) (58) (80) (55) (4) (14)
Add:
Finance costs 280 495 676 644 164 139
Income tax expense 2,578 2,346 1,996 2,409 552 686
EBIT 10,120 9,150 8,254 11,127 2,273 3,855
Add/(Less):
Depreciation 1,604 2,174 3,016 3,181 1,021 1,117
Gain on disposal of (102) - (41) (31) - -
property, plant and
equipment
Unrealised loss/ 1 * (1) * * *
(gain) on foreign
exchange
Net impairment 786 592 1,440 3,549 1,213 415
losses on financial
assets and contract
assets
EBITDA 12,409 11,916 12,668 17,826 4,507 5,387
* Less than RM500
(2) Calculated based on GP divided by revenue.
(3) PBT margin and PAT margin are calculated based on the respective PBT and PAT for
the financial year/period divided by revenue.
(4) Calculated based on PAT divided by 327,000,000 enlarged number of Shares in issue
before IPO.
(5) Calculated based on PAT divided by 408,750,000 enlarged number of Shares in issue
after IPO.
231
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
12.1.2 Historical combined statements of financial position
The following table sets out the combined statements of financial position of our Group as
at 30 June 2018, 2019, 2020 and 2021 as well as 31 October 2020 and 31 October 2021
which have been extracted from the Accountants’ Report. It should be read in conjunction
with the "Management's Discussion and Analysis of Financial Condition and Results of
Operations" and the Accountants' Report set out in Sections 12.2 and 13 respectively. The
Group has adopted MFRS 16 Leases in the FYE 2018. Right-of-use assets and lease liabilities
are recognised in the combined statements of financial position as at 30 June 2018 upon
adoption of MFRS 16.

As at 31 As at 31
As at 30 June October October
2018 2019 2020 2021 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
ASSETS
Non-current assets
Property, plant and 710 1,869 1,794 2,141 2,488 2,408
equipment
Investment properties 672 657 642 627 637 622
Right-of-use assets 4,843 8,416 7,229 5,408 5,687 4,506
Deferred tax assets - - - 1,712 939 1,988
Total non-current 6,225 10,942 9,665 9,888 9,751 9,524
assets
Current assets
Trade receivables 7,925 13,280 8,623 29,767 13,164 26,986
Other receivables, 6,791 6,514 8,050 8,602 8,366 8,710
deposits and
prepayments
Contract assets 22,316 27,882 37,567 49,063 39,339 49,230
Amount owing by 150 - - - - -
directors
Current tax assets - - - 202 - -
Fixed deposits with 903 1,712 2,260 2,905 2,514 4,062
licensed banks
Cash and banks balances 957 3,203 3,774 8,353 3,586 8,673
Total current assets 39,042 52,591 60,274 98,892 66,969 97,661
Non-current assets - 2,200 2,200 - 2,200 -
classified as held for
sale
39,042 54,791 62,474 98,892 69,169 97,661
TOTAL ASSETS 45,267 65,733 72,139 108,780 78,920 107,185
EQUITY AND
LIABILITIES
Equity attributable to
owners of the Group
Share capital 800 1,000 1,250 1,750 1,250 1,750
Retained profits 21,269 26,388 30,929 37,498 32,490 40,541
TOTAL EQUITY 22,069 27,388 32,179 39,248 33,740 42,291
232
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)

As at 31 As at 31
2018 2019 2020 2021 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Non-current liabilities
Lease liabilities 2,402 2,688 2,569 1,893 2,009 1,641
Term loans 522 984 805 2,256 2,116 2,153
Deferred tax liabilities 2,986 994 297 - - -
liabilities
Current liabilities
Trade payables 10,859 19,104 23,107 42,228 26,285 43,166
Other payables and 1,190 4,336 1,433 1,345 978 1,392
accruals
Contract liabilities 1,269 1,127 2,750 12,380 3,559 10,472
Term loans 26 503 428 763 882 562
Bankers' acceptances - 2,248 1,573 2,490 2,601 1,290
Trust receipts - - 504 1,644 - 242
Bank overdrafts - 78 - - - -
Current tax liabilities 2,183 2,144 1,860 2,278 2,420 2,185
Total current liabilities 17,288 31,817 34,467 65,383 39,241 61,100
Liabilities directly - 1,862 1,822 - 1,814 -
associated with non-
current assets
sale
17,288 33,679 36,289 65,383 41,055 61,100
TOTAL LIABILITIES 23,198 38,345 39,960 69,532 45,180 64,894
TOTAL EQUITY AND 45,267 65,733 72,139 108,780 78,920 107,185
LIABILITIES
233
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
12.1.3 Historical combined statements of cash flows
The following table sets out the combined statements of cash flows of our Group for FYE
2018 to 2021, FPE 2021 and FPE 2022 which have been extracted from the Accountants’
Report. It should be read in conjunction with the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and the Accountants' Report set out in
Sections 12.2 and 13 respectively.
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cash flows from/ (for)
operating activities
PBT 9,945 8,713 7,658 10,538 2,113 3,730
Adjustments for:
Depreciation of investment 15 15 15 15 5 5
properties
Depreciation of property, 226 466 571 1,386 387 528
plant and equipment
Depreciation of right-of-use 1,363 1,693 2,430 1,780 629 584
assets
Deposit written off - - - 109 - -
Impairment loss on trade 786 628 1,440 2,200 550 731
receivables
Impairment loss on - - - 1,349 730 31
contract assets
Interest expense 32 189 304 357 75 74
Interest expense on lease 248 306 372 287 89 65
liabilities
Unrealised loss/(gain) on 1 (1)
- (1) (1)
- (1)
- (1)
-
foreign exchange
Property, plant and -
- - 2 2 -
equipment written off
Interest income (105) (58) (80) (55) (4) (14)
(Gain)/loss on disposal of (102) - (41) (31) - -
property, plant and
equipment
Gain on disposal of right-of- - - (41) (206) - -
use assets
Reversal of impairment loss - (36) - - (67) (347)
Operating profit before 12,409 11,916 12,627 17,731 4,509 5,387
working capital changes
Changes in working capital:
Increase in contract assets (5,160) (5,708) (8,061) (3,215) (922) (1,779)
(Increase)/Decrease in (2,287) (6,457) 1,680 (24,007) (6,211) 1,962
trade and other
receivables
(Decrease) /increase in (336) 11,390 3,162 19,035 2,823 984
trade and other payables
Cash from operations 4,626 11,141 9,408 9,544 199 6,554
Income tax paid (1,206) (4,210) (2,977) (4,201) (1,228) (853)
Income tax refund 48 22 - - - -
Net cash from/ (for) 3,468 6,953 6,431 5,343 (1,029) 5,701
operating activities
234
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cash flows (for)/ from

investing activities
Addition of right-of-use 7 (4,525) (182) 162 - (66)
assets
Interest income received 105 58 80 55 4 14
Placement of fixed deposits (312) (1,060) (778) (645) (254) (158)
with licensed banks
Purchase of property, plant (313) (1,490) (497) (249) (169) (260)
and equipment
Proceeds from disposal of 121 - 42 31 - -
property, plant and
equipment
Proceeds from disposal of - - 245 2,405 - -
right-of-use assets
Net cash (for)/ from (392) (7,017) (1,090) 1,759 (419) (470)
investing activities
Cash flows (for)/ from

financing activities
(Advances to)/Repayment (150) 150 - - - -
from directors
Dividends paid (500) (650) (1,120) (1,060) - -
Interest paid (280) (495) (676) (644) (164) (139)
Net repayment of lease (1,757) (2,272) (2,911) (2,841) (857) (865)
liabilities
Drawdown of term loans 13 2,899 126 2,300 1,800 -
Repayment of term loans (22) (99) (421) (2,335) (43) (305)
Drawdown of bankers’ - 5,278 6,758 8,579 2,888 1,290
acceptances
Repayment of bankers’ - (3,030) (7,433) (7,662) (1,860) (2,490)
acceptances
Drawdown of trust receipts - - 1,695 2,454 620 -
Repayment of trust receipts - - (1,191) (1,314) (1,124) (1,402)
Proceeds from issuance of 150 200 250 (1)
- - -
ordinary shares
Net cash (for)/ from (2,546) 1,981 (4,923) (2,523) 1,260 (3,911)
financing activities
Net increase/ 530 1,917 418 4,579 (188) 1,320

(decrease) in cash and
cash equivalents
Effect of foreign exchange (1) (1)
(-) 1 (1)
(-) (1)
(-) (1)
(-)
translation
Cash and cash equivalents 909 1,438 3,355 3,774 3,774 8,353
at the beginning of the
financial year/ period
Cash and cash 1,438 3,355 3,774 8,353 3,586 9,673
equivalents at the end
of the financial year/
period
235
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cash and cash equivalents at end of the financial year/

period comprise:
Fixed deposits with licensed 903 1,712 2,260 2,905 2,514 4,062
banks
Cash and bank balances 957 3,203 3,774 8,353 3,586 8,673
1,860 4,915 6,034 11,258 6,100 12,735
Less : Bank overdrafts - (78) - - - -
Less : fixed deposits (422) (1,482) (2,260) (2,905) (2,514) (3,062)
pledged to licensed banks
1,438 3,355 3,774 8,353 3,586 9,673
Note:
(1) Represents less than RM500.
236
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
12.2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS
The following discussion and analysis of our combined financial information for FYE 2018 to
2021, FPE 2021 and FPE 2022 should be read in conjunction with the Accountants’ Report
included in Section 13.
12.2.1 Overview of our operations
(i) Principal activities
Our Group is principally involved in the provision of infrastructure utilities services

comprising:
(a) underground utilities engineering services and solutions; and
(b) substation engineering services and solutions.
Please refer to Section 7 for our Group’s detailed business overview.
(ii) Revenue
Our revenue stream can be segregated into 2 main segments namely underground
utilities engineering and substation engineering.
Our Group’s revenue recognition criteria for underground utilities engineering and
substation engineering segment are as follows:
(a) our Group generally enters into contracts with our customers on a project-by-
project basis for underground utilities engineering and substation engineering.
Revenue generated from these contracts are recognised over time in the period
in which the services are rendered using the input method which is determined
based on the proportion of contract costs incurred for work performed to date
over the estimated total contract costs; and
(b) the revenue for other goods and services of our Group which is not related to
any contracts is recognised based on progress of work performed and upon the
rendering of services.
Contractually, we will bill customers based on actual work done as certified by our
customers. Payment will be made to us upon issuance of invoices to our customers
and depending on the agreed trade credit terms granted by our Group to our
customers.
(iii) Cost of sales
The cost of sales comprises purchase of raw materials and consumables,

subcontractors’ fee and overhead. Raw materials and consumables include purchase
cost of pipes, cables, cable joint, substation steel structure and clamps.
Subcontractors’ fees comprise amounts paid for contractual workers’ salaries and
third-party subcontractors. Overheads include maintenance (comprising regular
maintenance and services of machineries and motor vehicles), rental of machineries,
site expenses, training, travelling expenses and staff costs.
237
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
(iv) Other income
Other income mainly includes compensation received, interest income, gain on

disposal of property, plant and equipment and rental income.
(v) Administration expenses
Administration expenses are not directly attributable to the construction and project
operation. It includes overheads incurred to maintain our operations such as
administrative staff costs, maintenance, rental of premises and equipment,
professional fee, travelling and accommodation, licence and permit fee as well as
marketing expenses.
(vi) Other expenses
Other expenses relate to expenses incurred which are not directly related to our
operations namely the depreciation of investment properties, depreciation of
property, plant and equipment as well as depreciation of right-of-use assets.
(vii) Finance costs
Finance costs comprise interest expense on our borrowings, trade facilities and lease
liabilities.
(viii) Recent developments
Save for the Acquisitions and the interruptions in our business due to COVID-19 and
MCO as disclosed in Section 7.12, there were no other significant events subsequent
to our Group’s audited combined financial statements for FPE 2022.
(ix) Exceptional and extraordinary items and audit qualifications
There were no exceptional or extraordinary items during FYE 2018 to FYE 2021 and
FPE 2022. In addition, our audited financial statements for the financial years/period
under review were not subject to any audit qualifications.
12.2.2 Review of our results of operations
(i) Revenue
Our sales are solely derived from the local market and denominated in RM. Our
Group’s revenue is derived from underground utilities engineering and substation
engineering segments. Contracts are currently the core contributor to our Group’s
revenue which are mainly being secured under the underground utilities engineering
segment and substation engineering segment.
Customer concentration
Our customers comprise mainly main contractors for power projects, property
developers and industries that require our services and solutions to enable the supply
of power to specific locations and/or premises. Our largest customer accounted for
approximately 16.77%, 48.13%, 40.13%, 39.65%, 29.65% and 49.46% of our
revenue for the FYE 2018, FYE 2019, FYE 2020, FYE 2021, FPE 2021 and FPE
2022. Our three largest customers accounted for approximately 40.26%, 58.32%,
55.95%, 55.92%, 49.62% and 67.44% of our revenue for the FYE 2018, FYE
2019, FYE 2020, FYE 2021, FPE 2021 and FPE 2022.
238
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
During FYE 2018 to 2021, FPE 2021 and FPE 2022, our business is reliant on
Rentak Segar which accounted for approximately 16.77%, 48.13%, 40.13%,
39.65%, 29.65% and 49.46% of our revenue.
Rentak Segar is a wholly-owned Bumiputera company specialising in the fields of

civil, structure, mechanical and electrical works and inclusive but not limited to
the HDD. Rentak Segar is registered as an approved-contractor with various
government and private sectors such as:
(i) Sijil Kontraktor Kerja Taraf Bumiputera, of which Rentak Segar is recognised
as a Bumiputera company allowing Rentak Segar to participate government
tenders and contracts for Bumiputera companies;
(ii) CIDB which allows Rentak Segar to undertake construction jobs based on
registered class or grade;
(iii) MOF which allows Rentak Segar to participate in government sector and semi-
government tenders and contracts; and
(iv) TNB which allows Rentak Segar to participate in TNB’s tenders and contracts.
Rentak Segar has appointed us as its exclusive partner for the implementation of
medium voltage and high voltage underground engineering services and solutions for
power utilities. While we are an exclusive partner to Rentak Segar, we are not
restricted from rendering similar services to other customers. We will continue to
diversify our customer base by establishing long-term relationships with other
customers and offer our services to increase sales from other customers.
Revenue by segment
Audited
FYE 2018 FYE 2019 FYE 2020 FYE 2021
Segment RM'000 % RM'000 % RM'000 % RM’000 %
Underground utilities 42,564 82.24 48,012 73.10 54,779 80.55 92,782 80.54
engineering
Substation engineering 9,190 17.76 17,664 26.90 13,229 19.45 22,418 19.46
51,754 100.00 65,676 100.00 68,008 100.00 115,200 100.00
Unaudited Audited
FPE 2021 FPE 2022
Segment RM'000 % RM'000 %
Underground utilities
23,719 79.14 25,735 75.73
engineering
Substation engineering 6,253 20.86 8,246 24.27
29,972 100.00 33,981 100.00
239
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
Revenue by customers’ industry
Audited
FYE 2018 FYE 2019 FYE 2020 FYE 2021
Customers’ industry RM'000 % RM'000 % RM'000 % RM’000 %
Power 51,754 100.00 63,833 97.19 61,812 90.89 110,638 96.04

Gas - - 564 0.86 2,790 4.10 4,190 3.64
Sewerage - - 1,279 1.95 3,406 5.01 372 0.32
51,754 100.00 65,676 100.00 68,008 100.00 115,200 100.00
Unaudited Audited
FPE 2021 FPE 2022
Customers’ industry RM'000 % RM'000 %
Power 29,200 97.43 33,506 98.60

Gas 1,224 4.08 733 2.16
Sewerage (1)
(452) (1.51) (1)
(258) (0.76)
29,972 100.00 33,981 100.00
Note:
(1) Following the variation of contract sum of 2 contracts in FPE 2021 and FPE
2022 as a result of project scope revision as agreed with customers, a re-
measurement of the amount of work performed was carried out subsequent to
the variation of contracts sum where the excess portion of revenue recognised
previously was reversed out.
Revenue by top 5 customers
FYE 2018 Audited

Customer Name RM'000 %
Rentak Segar 8,680 16.77
Impiana Mahir 6,824 13.19
S.A Continental Sdn Bhd 5,330 10.30
Sunsuria City Sdn Bhd 3,773 7.29
Southville City Sdn Bhd 3,413 6.59
28,020 54.14
FYE 2019 Audited

Golden Lustre Sendirian Berhad 3,590 5.47
I-City Properties Sdn Bhd 3,100 4.72
Tenaga Switchgear Sdn Bhd 2,963 4.51
Kejuruteraan Broad-Way Sdn Bhd 2,332 3.55
43,595 66.38
240
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
FYE 2020 Audited

MCC Technique Sdn Bhd 6,122 9.00
Top Quality Glove Sdn Bhd 3,040 4.47
Hap Seng Land Development (JTR2) Sdn Bhd 2,861 4.21
43,953 64.63
FYE 2021 Audited

Syarikat Mohamad Salin Sdn Bhd 11,978 10.40
Pembinaan Tajri Sdn Bhd 6,758 5.87
Top Quality Glove Sdn Bhd 5,466 4.74
76,128 66.08
FPE 2021 Unaudited

Syarikat Mohamad Salin Sdn Bhd 3,393 11.32
Intco Malaysia Sdn Bhd 2,594 8.65
19,109 63.75
FPE 2022 Audited

Wahloon (M) Sdn Bhd 3,716 10.94
S.A Continental Sdn Bhd 1,447 4.26
Pembinaan Tajri Sdn Bhd 1,401 4.12
25,765 75.82
241
Registration No.:
Registration 202001038774
No.: (1395095-M)
202001038774 (1395095-M)
Number of new contracts commenced during the year/ period
Number of new contracts

Contract value of new contracts
commenced during the year/ Period
below between RM1 between RM3 above below between RM1 between RM3 above
RM1 million and less million and RM5 RM1 million and less million and RM5
million than RM3 million RM5 million million Total million than RM3 million RM5 million million Total
Unit Unit Unit Unit Unit RM'000 RM'000 RM'000 RM'000 RM'000
FYE 2018 78 12 3 1 94 17,728 19,379 8,276 7,070 52,453
Underground utilities engineering services and 44 7 2 1 54 12,670 11,272 8,181 7,070 39,193
solutions
Substation engineering services and solutions 34 5 1 - 40 5,058 8,107 95 - 13,260
FYE 2019 107 18 2 2 129 21,972 33,820 8,575 20,670 85,037
solutions
Substation engineering services and solutions 39 6 - - 45 5,124 10,907 - - 16,032
FYE 2020 93 10 7 6 116 23,537 17,255 26,102 46,412 113,306
solutions
Substation engineering services and solutions 29 2 1 3 35 4,820 3,194 3,340 18,382 29,736
FYE 2021 101 19 4 7 131 20,559 34,813 17,923 41,090 114,385
solutions
Substation engineering services and solutions 29 4 - - 33 2,967 5,196 - - 8,163
FPE 2021 32 3 1 4 40 6,227 7,015 4,777 24,359 42,378
solutions
Substation engineering services and solutions 6 - - - 6 554 - - - 554
FPE 2022 31 8 2 1 42 6,667 14,011 9,545 5,176 35,399
Underground utilities engineering services and 19 6 1 - 26 3,895 10,009 4,860 - 18,764
solutions
Substation engineering services and solutions 12 2 1 1 16 2,772 4,002 4,685 5,176 16,635
242
Registration
Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
Comparison between FYE 2018 and FYE 2019
Our Group’s total revenue increased by RM13.93 million or 26.92%, from RM51.75
million in FYE 2018 to RM65.68 million in FYE 2019. This was due to an increase in
revenue contribution from the underground utilities engineering and substation
engineering segments.
Underground utilities engineering and substation engineering segments respectively

accounted for (i) 82.24% and 17.76% of our Group’s total revenue in FYE 2018; and
(ii) 73.10% and 26.90% of our Group’s total revenue in FYE 2019. The power
industry accounted for 100.00% of our Group’s total revenue in FYE 2018 and 97.19%
in FYE 2019.
During FYE 2019, our Group commenced 129 new contracts worth RM85.04 million as
compared to 94 new contracts worth RM52.45 million in FYE 2018. In FYE 2019, we
secured the following two major contracts with value above RM5.00 million:
(i) EPCC of natural gas distribution system located in Kluang, Johor with RM8.30
million contract value; and
(ii) Installation, testing and commissioning of underground cables for sites located
in Cyberjaya, Selangor with RM12.37 million contract value.
Underground utilities engineering
Revenue from underground utilities engineering segment increased by RM5.45 million

or 12.81% from RM42.56 million in FYE 2018 to RM48.01 million in FYE 2019. The
increase was mainly attributable to the increase in revenue contribution from
contracts secured from Rentak Segar of RM22.93 million from RM8.68 million in FYE
2018 to RM31.61 million in FYE 2019.
However, the increase in revenue from our underground utilities engineering segment
was partially offset by decrease in revenue contribution from other customers.
Substation engineering
Revenue for the substation engineering segment increased by RM8.47 million or

92.17% from RM9.19 million in FYE 2018 to RM17.66 million in FYE 2019. The
increase was mainly attributable to the higher percentage of works performed for
selected ongoing contracts from the previous year as well as new contracts secured
in FYE 2019. These selected ongoing contracts commenced at the end of FYE 2018
and had reached a higher percentage of completion in FYE 2019. Hence, the revenue
from these selected ongoing contracts had partially contributed to the increase of the
revenue under the substation engineering segment.
The higher percentage of works performed contributed to the completion of the

following projects:
(i) supply of labour and material for erection works of main switching station in
Kangkar Tebrau, Johor. Our Group has recognised RM1.77 million from this
project in FYE 2019;
(ii) supply, install and commissioning of lightning rods for grid maintenance in
Kluang, Johor. Our Group has recognised RM1.61 million from this project in
FYE 2019;
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202001038774 (1395095-M)
(1395095-M)
(iii) design, construction, commissioning, handing over and provision of

engineering works for main switching substation in Kota Kinabalu, Sabah. Our
Group has recognised RM1.13 million from this project in FYE 2019; and
(iv) provision of construction and engineering works for main switching station in
Semenyih, Selangor. Our Group has recognised RM1.08 million from this
project in FYE 2019.
Our Group’s total revenue increased by RM2.32 million or 3.53% from RM65.68
revenue contribution from underground utilities engineering segment offset by
decrease in the substation engineering segment.

accounted for (i) 73.10% and 26.90% of our Group’s total revenue in FYE 2019; and
(ii) 80.55% and 19.45% of our Group’s total revenue in FYE 2020. The power
industry accounted for 97.19% of our Group’s total revenue in FYE 2019 and 90.89%
in FYE 2020.
During FYE 2020, our Group commenced 116 new contracts worth RM113.31 million
as compared to 129 new contracts worth RM85.04 million in FYE 2019. In FYE 2020,
new contracts with value above RM5.00 million increased to 6 which consists of:
(i) contract for supply of labour and material for cable laying works from an
industrial plant to the main switching station at Mahkota Industrial Park,
Banting, Selangor with RM13.60 million contract value;
(ii) contract for HDD works for project site located in Bukit Changgang, Banting,
Selangor with RM8.53 million contract value;
(iii) contract for HDD work from Kuala Selangor to Tanjung Karang with RM5.90
million contract value;
(iv) contract for implementation of interconnection facilities and related peripheral

systems for LSS PV energy generating facility located in Sungai Petani, Kedah
with RM6.45 million contract value;
(v) contract for implementation of interconnection facilities and related peripheral

systems for LSS PV energy generating facility located in Machang, Kelantan
with RM6.45 million contract value; and
(vi) contract for EPCC of solar PV energy generating facility, the interconnector
facility and associated works with established capacity of 30Mwac ground
mounted solar PV power plant located at Mukim Sik, Daerah Sik, Kedah with
RM5.50 million contract value.
Revenue from underground utilities engineering segment increased by RM6.77 million

or 14.10%, which rose from RM48.01 million in FYE 2019 to RM54.78 million in FYE
2020. The increase was mainly attributable to higher construction activities of the
certain ongoing contracts commenced in previous year as well as new contracts
secured in FYE 2020.
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Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
Revenue from the substation engineering segment decreased by RM4.43 million or

25.08% from RM17.66 million in FYE 2019 to RM13.23 million in FYE 2020 as we
secured fewer substation engineering contracts in FYE 2020 and several new
contracts secured in FYE 2020 only commenced towards the end of the financial year
which resulted in lower revenue.
revenue contribution from underground utilities engineering and substation
engineering segment.

accounted for 80.55% and 19.45% of our Group’s total revenue in FYE 2020; 80.54%
and 19.46% of our Group’s total revenue in FYE 2021. The power industry accounted
for 90.89% of our Group’s total revenue in FYE 2020 and 96.04% in FYE 2021. Our
Group’s revenue from the sewerage industry recorded a decrease in revenue from
RM3.41 million in FYE 2020 to RM0.37 million in FYE 2021 as our Group commenced
3 sewerage related projects in FYE 2020 with contract value of RM2.04 million as
compared to 1 sewerage related project commenced and completed in FYE 2021 with
contract value of RM0.24 million.
During FYE 2021, our Group commenced 131 new contracts worth RM114.39 million
as compared to 116 new contracts worth RM113.31 million in FYE 2020. In FYE 2021,
new contracts with value above RM5.00 million increased from 6 in FYE 2020 to 7
which consists of:
(i) contract for HDD works for transmission main intake interconnection for a
manufacturing plant located in Cyberjaya, Selangor with RM5.72 million
contract value;
(ii) contract for HDD works for the supply of electricity to the transmission main
intake interconnection for a manufacturing plant located in Setia Alam,
(iii) contract for HDD works for the supply of electricity to the transmission main
intake interconnection for a manufacturing plant located in Klang, Selangor
with RM5.39 million contract value;
(iv) contract for HDD works for the supply of electricity to a manufacturing plant
located in Klang, Selangor with RM7.71 million contract value;
(v) contract for HDD works for the supply of electricity to the transmission main
intake interconnection for a manufacturing plant located in Setia Alam,
(vi) contract for HDD works for the supply of electricity to the transmission main
intake interconnection for a manufacturing plant located in Klang, Selangor
with RM5.11 million contract value; and
(vii) contract for HDD works for installation, testing and commissioning of
underground cables and accessories for substations at Banting Sentral with
RM5.34 million contract value.
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202001038774 (1395095-M)
(1395095-M)
Revenue from underground utilities engineering segment increased by RM38.00

million or 69.37%, which rose from RM54.78 million in FYE 2020 to RM92.78 million
in FYE 2021. The increase was mainly attributable to the higher percentage of works
performed for ongoing contracts in FYE 2021 as compared to FYE 2020. The increase
was also attributable to the commencement of 98 new underground utilities
engineering projects in FYE 2021 which generated a revenue of RM16.88 million as
compared to 81 new underground utilities engineering projects in FYE 2020 which
generated a revenue of RM23.02 million.
Revenue from the substation engineering segment increased by RM9.19 million or

69.46% from RM13.23 in FYE 2020 to RM22.42 million in FYE 2021 as higher level of
construction activities for contracts commenced in FYE 2020 undertaken in FYE 2021.
The increase was partially offset by the commencement of only 33 new substation
engineering projects in FYE 2021 which generated a revenue of RM2.54 million as
compared to 35 new substation engineering projects in FYE 2020 which generated a
revenue of RM8.75 million.
Comparison between FPE 2021 and FPE 2022
million in FPE 2021 to RM33.98 million in FPE 2022. This was due to an increase in
revenue contribution from underground utilities engineering and substation
engineering segment.

accounted for 79.14% and 20.86% of our Group’s total revenue in FPE 2021; and
75.73% and 24.27% of our Group’s total revenue in FPE 2022. The power industry
accounted for 97.43% of our Group’s total revenue in FPE 2021 and 98.60% in FPE
2022.
During FPE 2022, our Group commenced 42 new contracts worth RM35.40 million as
compared to 40 new contracts worth RM42.38 million in FPE 2021. In FPE 2022, new
contracts with value above RM5.00 million reduced from 4 in FPE 2021 to 1 which
consists of contract for asset replacement and refurbishment for substation at Skudai,
Johor with RM5.18 million contract value.
Revenue from underground utilities engineering segment increased slightly by

RM2.02 million or 8.52%, which rose from RM23.72 million in FPE 2021 to RM25.74
million in FPE 2022. The increase was mainly attributable to slightly higher
percentage of works performed for ongoing contracts in FPE 2022 as compared to
FPE 2021 as our Group’s employ resources optimisation strategy to increase
construction work efficiency while ramping up the capacities at our construction sites
to complete the backlog of our construction works.
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No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
Revenue from the substation engineering segment increased by RM2.00 million or

32.00% from RM6.25 million in FPE 2021 to RM8.25 million in FPE 2022 due to
commencement of 16 new contracts with total contract value of RM16.64 million in
FPE 2022 as compared to 6 new contracts with total contract value of RM0.55 million
in FPE 2021.
(ii) Cost of sales, GP and GP margin
Analysis of cost of sales by segment
Audited
FYE 2018 FYE 2019 FYE 2020 FYE 2021
RM'000 % RM'000 % RM’000 % RM’000 %

• Raw materials 12,469 34.52 14,061 28.64 16,641 32.83 29,000 32.17
and consumables
• Subcontractors' 13,336 36.92 16,374 33.35 19,090 37.66 35,743 39.66
fee
• Overhead 3,269 9.05 5,817 11.85 5,226 10.31 8,166 9.06
29,074 80.49 36,252 73.84 40,957 80.80 72,909 80.89
• Raw materials 2,031 5.63 4,928 10.04 3,748 7.39 11,383 12.63
and consumables
• Subcontractors' 3,985 11.03 5,555 11.31 4,443 8.77 4,357 4.83
fee
• Overhead 1,029 2.85 2,361 4.81 1,543 3.04 1,490 1.65
7,045 19.51 12,844 26.16 9,734 19.20 17,230 19.11
36,119 100.00 49,096 100.00 50,691 100.00 90,139 100.00
Unaudited Audited
FPE 2021 FPE 2022
RM'000 % RM'000 %

• Raw materials 7,218 30.55 7,617 29.47
and consumables
• Subcontractors' 8,998 38.09 9,314 36.04
fee
• Overhead 2,587 10.95 2,507 9.70
18,803 79.59 19,438 75.21
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• Raw materials 3,524 14.92 3,550 13.73
and consumables
• Subcontractors' 947 4.01 1,935 7.49
fee
• Overhead 351 1.48 923 3.57
4,822 20.41 6,408 24.79
23,625 100.00 25,846 100.00
Analysis of cost of sales by component
Audited
FYE 2018 FYE 2019 FYE 2020 FYE 2021
Component RM’000 % RM’000 % RM’000 % RM’000 %
Raw materials and 14,500 40.15 18,989 38.68 20,389 40.22 40,383 44.80
consumables
Subcontractors' fee 17,321 47.95 21,929 44.66 23,533 46.43 40,100 44.49
Overhead 4,298 11.90 8,178 16.66 6,769 13.35 9,656 10.71
36,119 100.00 49,096 100.00 50,691 100.00 90,139 100.00
Unaudited Audited
FPE 2021 FPE 2022
Component RM’000 % RM’000 %
Raw materials and 10,742 45.47 11,167 43.20

consumables
Subcontractors' 9,945 42.10 11,249 43.53
fee
Overhead 2,938 12.43 3,430 13.27
23,625 100.00 25,846 100.00
Analysis of GP and GP margin by segment
Audited
FYE 2018 FYE 2019 FYE 2020 FYE 2021
GP GP GP GP
GP margin GP margin GP margin GP margin
Business activity RM'000 % RM'000 % RM'000 % RM'000 %
Underground utilities 13,490 31.69 11,760 24.49 13,822 25.23 19,873 21.42
engineering
Substation 2,145 23.34 4,820 27.29 3,495 26.42 5,188 23.14
engineering
15,635 30.21 16,580 25.25 17,317 25.46 25,061 21.75
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202001038774 (1395095-M)
(1395095-M)
Unaudited Audited
FPE 2021 FPE 2022
GP GP
GP margin GP margin
Business activity RM'000 % RM'000 %
Underground utilities
4,916 20.73 6,298 24.47
engineering
Substation
1,431 22.89 1,837 22.28
engineering
6,347 21.18 8,135 23.94
Cost of sales
Our Group’s total cost of sales increased by RM12.98 million or 35.94%, from
RM36.12 million in FYE 2018 to RM49.10 million in FYE 2019. This was mainly
attributed to the higher cost of sales recognised from:
(i) the underground utilities engineering segment which increased by RM7.18

million or 24.70% from RM29.07 million in FYE 2018 to RM36.25 million in FYE
2019; and
(ii) the substation engineering segment which increased by RM5.79 million or

82.13% from RM7.05 million in FYE 2018 to RM12.84 million in FYE 2019.
In terms of component, the overall increase was mainly attributable to the following
cost items:
(i) increase in the subcontractors’ fee of RM4.61 million or 26.62% from RM17.32
million in FYE 2018 to RM21.93 million in FYE 2019. Subcontractors’ fee
accounted for 47.95% and 44.66% of the total cost of sales in FYE 2018 and
FYE 2019 respectively;
(ii) increase in the purchase of raw materials and consumables of RM4.49 million
or 30.97% from RM14.50 million in FYE 2018 to RM18.99 million in FYE 2019.
Raw materials and consumables accounted for 40.15% and 38.68% of the total
cost of sales in FYE 2018 and FYE 2019 respectively; and
(iii) increase in the overhead cost of RM3.88 million or 90.23% from RM4.30 million
in FYE 2018 to RM8.18 million in FYE 2019 mainly due to the higher rental of
machineries and site expenses. Overhead cost accounted for 11.90% and
16.66% of the total cost of sales in FYE 2018 and FYE 2019 respectively.
The increase in overall cost of sales is in line with the increase in number and scale of
projects undertaken. Further, one of our project for installation, testing and
commissioning of underground cables and accessories for main switching station
located in Kelantan had incurred higher cost of sales of RM5.62 million in FYE 2019 as
a result of the higher percentage of work performed and therefore contributed to
higher overall increase in cost of sales. This project had completed during FYE 2019.
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202001038774 (1395095-M)
(1395095-M)
GP and GP margin
Our Group’s GP increased by RM0.94 million or 6.01% from RM15.64 million in FYE
2018 to RM16.58 million in FYE 2019, while our overall GP margin decreased from
30.21% in FYE 2018 to 25.25% in FYE 2019.
The decrease in our GP margin in FYE 2019 was mainly attributable to our
underground utilities engineering segment which recorded decrease in GP margin
from 31.69% in FYE 2018 to 24.49% in FYE 2019 due to:
(i) more subcontractors were engaged to perform the construction works and
higher overheads incurred under underground utilities engineering segment;
and
(ii) lower bid pricing strategy for certain contracts (attractive budget with lower
project margin) in order to successfully secure the contracts during competitive
tendering situation.
The decrease was partially lifted by our substation engineering segment which
recorded increase in GP margin from 23.34% in FYE 2018 to 27.29% in FYE 2019
mainly due to the lower copper prices that resulted lower raw materials costs for
substation engineering services and solutions.
Cost of sales
Our Group’s total cost of sales increased by RM1.59 million or 3.24%, from RM49.10
million in FYE 2019 to RM50.69 million in FYE 2020. This was mainly attributed to the
higher cost of sales recognised from the underground utilities engineering segment,
which increased by RM4.71 million or 12.99% from RM36.25 million in FYE 2019 to
RM40.96 million in FYE 2020. The increase is mainly offset by the decrease in cost of
sales recognised from the substation engineering segments of RM3.11 million or
24.22% from RM12.84 million in FYE 2019 to RM9.73 million in FYE 2020, collectively.
cost items:
million in FYE 2019 to RM23.53 million in FYE 2020. Subcontractors’ fee
accounted for 44.66% and 46.43% of the total cost of sales in FYE 2019 and
FYE 2020 respectively; and
cost of sales in FYE 2019 and FYE 2020 respectively.
The increase in subcontractors’ fee and purchase of raw materials and consumables
were offset by the decrease in the overhead cost of RM1.41 million or 17.24% from
RM8.18 million in FYE 2019 to RM6.77 million in FYE 2020. Overhead cost accounted
for 16.66% and 13.35% of the total cost of sales in FYE 2019 and FYE 2020
respectively. The decrease in the overhead cost was due to lower cost incurred for
rectification work for damaged pipes in relation to our projects as well as lower plant
and machinery cost due to lower hiring of machineries in FYE 2020 as compared to
FYE 2019.
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No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
The increase in cost of sales is due to higher raw materials and consumable cost as
well as more subcontractors employed for the higher-level construction activities.
GP and GP margin
2019 to RM17.32 million in FYE 2020, while our overall GP margin increased from
25.25% in FYE 2019 to 25.46% in FYE 2020.
The increase in our GP and GP margin in FYE 2020 were attributable to our
underground utilities engineering segment which recorded increase in GP of RM2.06
million from RM11.76 million in FYE 2019 to RM13.82 million in FYE 2020 and
increase in GP margin from 24.49% in FYE 2019 to 25.23% in FYE 2020, due to
higher revenue and lower overheads in FYE 2020.
The increase in GP and GP margin were partially offset by our substation engineering
segment which recorded decrease in GP of RM1.32 million from RM4.82 million in FYE
2019 to RM3.50 million in FYE 2020 where GP margin decrease from 27.29% to
26.42% due to:
(i) lower GP margin for one of our projects in relation to servicing lightning rod for
substation engineering segment which contributed 20.31% GP margin; and
(ii) fixed direct labour costs incurred during the preliminary state of our two major
contracts (contracts for implementation of interconnection facilities and related
peripheral systems for LSS PV energy generating facility located in Sungai
Petani, Kedah and Machang, Kelantan) which commenced in September 2019
and mainly involved works such as design of drawings. These fixed direct
labour costs incurred during the preliminary stage did not contribute to our
recognition of revenue from these two contracts.
Cost of sales
Our Group’s total cost of sales increased by RM39.45 million or 77.82%, from
RM50.69 million in FYE 2020 to RM90.14 million in FYE 2021. This was mainly
attributed to the higher cost of sales recognised from:

million or 78.00% from RM40.96 million in FYE 2020 to RM72.91 million in FYE
2021; and

77.08% from RM9.73 million in FYE 2020 to RM17.23 million in FYE 2021.
cost items:
(i) increase in the purchase of raw materials and consumables of RM19.99 million
cost of sales in FYE 2020 and FYE 2021 respectively;
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202001038774 (1395095-M)
(1395095-M)
(ii) increase in the subcontractors’ fee of RM16.57 million or 70.42% from

RM23.53 million in FYE 2020 to RM40.10 million in FYE 2021 as a result of
higher level of construction activities undertaken which was in line with the
increase in revenue for FYE 2021. Subcontractors’ fee accounted for 46.43%
and 44.49% of the total cost of sales in FYE 2020 and FYE 2021 respectively;
and
in FYE 2020 to RM9.66 million in FYE 2021. Overhead cost accounted for
13.35% and 10.71% of the total cost of sales in FYE 2020 and FYE 2021
respectively.
The increase in overall cost of sales is in line with the higher construction activities
and scale of projects undertaken. In FYE 2021, 3 of our major ongoing projects (with
contract value above RM5.00 million) under substation engineering segment which
commenced at the end of FYE 2020 recorded higher cost of raw materials and
consumable of approximately RM7.50 million to meet the raw materials requirement
for advanced stage of construction activities in FYE 2021, which constituted a large
part of the increase in cost of raw materials and consumables in FYE 2021. The
higher cost of raw materials and consumables in FYE 2021 was mainly attributable to
the higher volume of raw materials and consumables used in aforesaid projects.
GP and GP margin
2020 to RM25.06 million in FYE 2021, while our overall GP margin decreased from
25.46% in FYE 2020 to 21.75% in FYE 2021.
The decrease in our GP margin in FYE 2021 was attributable to our underground
utilities engineering segment which recorded decrease in GP margin from 25.23% in
FYE 2020 to 21.42% in FYE 2021 as well as substation engineering segment which
recorded decrease in GP margin from 26.42% in FYE 2020 to 23.14% in FYE 2021,
mainly due to the lower project margin of our following contracts:
(i) EPCC of natural gas distribution system located in Kluang, Johor with RM8.30
million contract sum, under underground utilities engineering segment;
(ii) contract for installation, testing and commissioning of underground cables for
sites located in Cyberjaya, Selangor with RM12.37 million contract value, under
underground utilities engineering segment;
(iii) contract for HDD works for transmission main intake interconnection for a
manufacturing plant located in Cyberjaya, Selangor with RM5.72 million
contract value, under underground utilities engineering segment;
(iv) contract for implementation of interconnection facilities and related peripheral

systems for LSS PV energy generating facility located in Sungai Petani, Kedah
with RM6.45 million contract value, under substation engineering segment; and
(v) contracts for implementation of interconnection facilities and related peripheral

systems for LSS PV energy generating facility located in Machang, Kelantan
with RM6.45 million contract value, under substation engineering segment.
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202001038774 (1395095-M)
(1395095-M)
For above item (ii) and (iii), additional costs were incurred on the material costs due
to change in project design. We bore the additional costs as these projects are lump
sum fixed contracts, and consequently our project margin for item (ii) to (iii) were
lower in FYE 2021.
The lower project margin for above item (i), (iv) and (v) were as a result of our
competitive bidding strategy in order to secure the abovesaid contracts.
Cost of sales
Our Group’s total cost of sales increased by RM2.22 million or 9.39%, from RM23.63
million in FPE 2021 to RM25.85 million in FPE 2022. This was mainly attributed to the
higher cost of sales recognised from:

million or 3.40% from RM18.80 million in FPE 2021 to RM19.44 million in FPE
2022; and

32.99% from RM4.82 million in FPE 2021 to RM6.41 million in FPE 2022.
cost items:
million in FPE 2021 to RM11.25 million in FPE 2022. Subcontractors’ fee
accounted for 42.10% and 43.53% of the total cost of sales in FPE 2021 and
FPE 2022 respectively;
or 4.00% from RM10.74 million in FPE 2021 to RM11.17 million in FPE 2022.
cost of sales in FPE 2021 and FPE 2022 respectively; and
in FPE 2021 to RM3.43 million in FPE 2022. Overhead cost accounted for 12.43%
and 13.27% of the total cost of sales in FPE 2021 and FPE 2022 respectively.
The increase in overall cost of sales is in line with the higher construction activities
and scale of projects undertaken. The increase in subcontractors’ fee was due to
higher subcontractors’ fee as a result of higher-level skilled works engaged for supply
and installation works for secondary equipment in our substation engineering
segment.
GP and GP margin
Our Group’s GP increased by RM1.79 million or 28.19% from RM6.35 million in FPE
2021 to RM8.14 million in FPE 2022, while our overall GP margin increased from
21.18% in FPE 2021 to 23.94% in FPE 2022.
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No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
The increase was attributable to our underground utilities engineering segment which
recorded increase in GP margin from 20.73% in FPE 2021 to 24.47% in FPE 2022
mainly due to the lower overhead expenses while higher revenue was recognised for
FPE 2022 as a result of lower expenses recorded in upkeep of site (RM1.00 million in
FPE 2021 compared to RM0.46 million in FPE 2022) that led to higher GP margin for
FPE 2022 in underground utilities engineering segment.
The increase in our GP margin from our underground utilities engineering segment
was offset by the decrease in our GP margin from our substation engineering
segment in FPE 2022, which recorded decrease in GP margin marginally from 22.89%
in FPE 2021 to 22.28%% in FPE 2022 mainly due to the lower project margin of our
following ongoing contracts during FPE 2022:
(i) Contract for replacement works of circuit breaker and bus capacitor for grid
maintenance in Kuala Lumpur with RM1.71 million contract sum, under
substation engineering segment;
(ii) Contract for supply of circuit breaker for grid maintenance with RM1.17 million
contract sum, under substation engineering segment;
(iii) Contract for replacement works of circuit breaker and bus capacitor for grid
maintenance in Johor with RM1.10 million contract sum, under substation
engineering segment;
(iv) Contract for supply of current transformer for grid maintenance with RM0.87
million contract sum, under substation engineering segment; and
(v) Contract for replacement works of circuit breaker and bus capacitor for grid
maintenance in Pulau Pinang with RM0.62 million contract sum, under
substation engineering segment.
For above item (i), (iii) and (v), the lower project margin due to increase in the
subcontractors’ fee due to higher-level of skilled works engaged for the supply and
installation works for certain substation equipment in our substation engineering
segment. We bore the additional costs as these projects are lump sum fixed
contracts. The lower project margin for item (ii) and (iv) were as a result of our
competitive bidding strategy in order to secure the contracts.
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Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
(iii) Other income
Audited
FYE 2018 FYE 2019 FYE 2020 FYE 2021
RM’000 % RM’000 % RM’000 % RM’000 %
Compensation received 141 31.13 - - 490 60.95 352 41.03

from insurance claims
Wage subsidy by - - - - 169 21.02 178 20.75
government
Interest income 105 23.18 58 70.73 80 9.95 55 6.41
Gain on disposal of 102 22.52 - - 41 5.10 237 27.62
property, plant and
equipment
Rental income 61 13.46 24 29.27 23 2.86 23 2.68
Unrealised gain on - - - - 1 0.12 - -
foreign exchange
Other 44 9.71 - - - - 13
(1)
1.51
453 100.00 82 100.00 804 100.00 858 100.00
Unaudited Audited
FPE 2021 FPE 2022
RM’000 % RM’000 %
Compensation received 159 54.08 - -

from insurance claims
Wage subsidy by
123 41.84 204 90.27
government
Interest income 4 1.36 14 6.19
Gain on disposal of - - - -
property, plant and
equipment
Rental income 8 2.72 8 3.54
Unrealised gain on - - - -
foreign exchange
Other - - - -
294 100.00 226 100.00
Note:
(1) Comprising discount received from suppliers and compensation in lieu of notice
received from resigned staff who did not serve notice.
Our other income decreased by RM0.37 million from RM0.45 million in FYE 2018 to
RM0.08 million in FYE 2019 mainly due to:
(i) absence of compensation received from insurance claims in relation to the

pipes damage in FYE 2019;
(ii) absence of gain on disposal of property, plant and equipment in FYE 2019;
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No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
(iii) lower interest income in FYE 2019 due to the duration of the deposits placed
during the year is shorter compared to FYE 2018.; and
(iv) lower rental income in FYE 2019 due to one of the investment properties at
Jalan Sentosa Sri Cheeding was vacant and unrented during FYE 2019.
Our other income increased by RM0.72 million from RM0.08 million in FYE 2019 to
RM0.80 million in FYE 2020 mainly due to:
(i) increase in compensation received from insurance companies of RM0.49 million

mainly due to the insurance claims for repair of 2 units of HDD machines in
relation to fire damage incidents;
(ii) wage subsidy by Government of Malaysia of RM0.17 million under PRIHATIN

Perusahaan Kecil & Sederhana; and
(iii) increase in gain on disposal of property, plant and equipment of RM0.04 in

relation to disposal of 1 unit of HDD machine.
Our other income increased by RM0.06 million from RM0.80 million in FYE 2020 to
RM0.86 million in FYE 2021 mainly due to increase in gain on disposal of property,
plant and equipment of RM0.20 million in relation to the disposal of 7 units of
leasehold building at Kelana Jaya, Selangor for RM2.41 million.
The increase was partially offset by the decrease in compensation received from
insurance claims by RM0.14 million. In FYE 2021, we received compensation from
insurance companies of RM0.18 million for the repair of 1 unit of HDD machine and
cables which were damaged.
Our other income decreased by RM0.06 million from RM0.29 million in FPE 2021 to
RM0.23 million in FPE 2022 mainly due to the absence of compensation from
insurance companies. In FPE 2021, we received compensation of RM0.16 million from
insurance companies for the repair of 1 unit of HDD machine and cables which were
damaged.
The decrease was partially offset by RM0.08 million increase in wage subsidy received
from the Government of Malaysia under PRIHATIN Perusahaan Kecil & Sederhana.
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No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
(iv) Administrative expenses
Audited
FYE 2018 FYE 2019 FYE 2020 FYE 2021
RM’000 % RM’000 % RM’000 % RM’000 %
Staff costs 1,940 55.88 2,502 53.37 3,255 61.06 4,120 52.19
Traveling and 447 12.88 469 10.00 472 8.85 323 4.09
accommodation
Maintenance(1) 266 7.66 387 8.26 470 8.82 609 7.72
Professional fee(2) 153 4.41 289 6.17 293 5.50 1,233 15.62
License and permit fee 190 5.47 341 7.27 182 3.41 270 3.42
Marketing expenses(3) 239 6.88 225 4.80 180 3.38 106 1.34
Bank charges and 38 1.10 155 3.31 151 2.83 495 6.27
processing fee
Other(4) 30 0.86 197 4.20 113 2.12 98 1.24
Printing and stationery 33 0.95 41 0.87 64 1.20 72 0.91
Project tender fee 106 3.05 30 0.64 63 1.18 290 3.67
Utilities 30 0.86 41 0.88 55 1.03 105 1.33
Rental of offices - - 11 0.23 33 0.62 174 2.20
3,472 100.00 4,688 100.00 5,331 100.00 7,895 100.00
Unaudited Audited
FPE 2021 FPE 2022
RM’000 % RM’000 %
Staff costs 475 22.33 692 23.39

Traveling and 68 3.20 101 3.41
accommodation
Maintenance(1) 270 12.69 166 5.61
Professional fee(2) 893 41.99 1,692 57.18
License and permit fee 77 3.62 109 3.68
Marketing expenses(3) 29 1.36 12 0.41
Bank charges and 123 5.78 84 2.84
processing fee
Other(4) 53 2.49 4 0.14
Printing and stationery 18 0.85 22 0.74
Project tender fee 20 0.94 29 0.98
Utilities 20 0.94 22 0.74
Rental of offices 81 3.81 26 0.88
2,127 100.00 2,959 100.00
Notes:
(1) Maintenance include maintenance of computer, motor vehicle, office equipment,

premises and insurance expense.
(2) Professional fees include fees incurred for bookkeeping, audit, tax, legal and
secretarial.
(3) Marketing expenses include advertisements, entertainment and agent

commission.
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(4) Others include expenses incurred for custom duty, quit rent and assessment,
service tax, stamping fee, subscription fee and penalty.
Administrative expenses increased by RM1.22 million or 35.16%, from RM3.47 million

in FYE 2018 to RM4.69 million in FYE 2019 mainly attributable to:
(i) increase in staff costs of RM0.56 million mainly due to salary increments and
recruitment of 11 new staffs (additional 2 staffs for accounts department and 9
staffs for engineering and design department);
(ii) increase in maintenance costs of RM0.12 million due to higher insurance

premium paid;
(iii) increase in professional fee of RM0.14 million due to higher legal fee for the
purchase of investment properties at Kelana Jaya and project management fee
incurred totalling RM0.08 million and professional fee incurred for banking
facilities and drawing fee of RM0.05 million;
(iv) increase in licence and permit fee of RM0.15 million mainly due to the local
council permits for site operation for the contracts commenced during FYE
2019; and
(v) increase in bank charges and processing fee of RM0.12 million mainly due to
higher bank charges and processing fee of RM0.11 million in relation to the
bankers’ guarantee for various contracts.
Administrative expenses increased by RM0.64 million or 13.65% from RM4.69 million

in FYE 2019 to RM5.33 million in FYE 2020 mainly attributable to the increase in staff
costs of approximately RM0.75 million. The increase in staff costs was mainly due to
additional 10 staffs recruited in FYE 2020 (additional 2 staffs for accounts
department, 5 staffs for engineering and design department, 1 staff for site operator
and worker department, 1 staff for contract and procurement department and 1 staff
for business development department). However, the increase in administrative
expense was offset by the decrease in licence and permit fee of RM0.16 million.

in FYE 2020 to RM7.89 million in FYE 2021 mainly attributable to the increase in staff
costs of approximately RM0.87 million, increase in professional fees of approximately
RM0.94 million and increase in bank charges and processing fee by RM0.34 million as
well as increase in project tender fee of RM0.23 million.
The increase in staff costs was mainly due to additional 10 staffs recruited in FYE
2021 (additional 9 staffs for engineering and design department and 1 staff for
contract and procurement department). The higher professional fee was mainly
attributable to the listing expenses in relation to IPO of RM0.71 million. On the other
hand, the increase in bank charges and processing fee was mainly due to RM0.15
million charges and fee related to the bankers’ guarantee for various contracts.
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No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
Our project tender fee rose to RM0.29 million in FYE 2021 as compared to RM0.06
million in FYE 2020 as a result of higher number of projects tendered during FYE
2021. We successfully obtained 131 contracts in FYE 2021 as compared to 116
number of contracts in FYE 2020.

in FPE 2021 to RM2.96 million in FPE 2022 mainly attributable to the increase in staff
costs of approximately RM0.22 million and increase in professional fees of
approximately RM0.80 million. The increase in staff costs was mainly due to higher
directors’ fee of RM0.07 million and staff welfare of RM0.09 million. The higher
professional fee was mainly attributable to the listing expenses in relation to IPO of
RM0.73 million.
(v) Other expenses
Audited
FYE 2018 FYE 2019 FYE 2020 FYE 2021
RM’000 % RM’000 % RM’000 % RM’000 %
Depreciation of 15 0.94 15 0.69 15 0.50 15 0.46
investment properties
Depreciation of property, 226 14.08 466 21.44 571 18.93 1,386 42.09
plant and equipment
Depreciation of right-of- 1,363 84.92 1,693 77.87 2,430 80.57 1,780 54.05
use assets
Unrealised loss on foreign 1 0.06 (1)
- - - - (1)
- -
exchange
Deposit written off - - - - - - 109 3.31
Other - - - - - - (2)
3 0.09
1,605 100.00 2,174 100.00 3,016 100.00 3,293 100.00
Unaudited Audited
FPE 2021 FPE 2022
RM’000 % RM’000 %
Depreciation of 5 0.49 5 0.45
investment properties
Depreciation of property, 387 37.79 528 47.23
plant and equipment
Depreciation of right-of- 629 61.43 585 52.32
use assets
Unrealised loss on foreign (1)
- - (1)
- -
exchange
Deposit written off - - - -
Other 3
(2)
0.29 - -
1,024 100.00 1,118 100.00
Notes:
(2) Represents expense related to asset held for sale.
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Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
Other expenses increased by RM0.57 million or 35.63%, from RM1.60 million in FYE
2018 to RM2.17 million in FYE 2019. The increase is mainly attributable to the
following:
(i) increase in depreciation of property, plant and equipment of RM0.24 million or

104.35% from RM0.23 million to RM0.47 million due to additional acquisition of
plant and machinery as well as motor vehicles; and
(ii) increase in depreciation of right-of-use assets of RM0.33 million or 24.26%

from RM1.36 million to RM1.69 million due to the additional acquisition of plant
and machinery as well as motor vehicles under hire purchase arrangement.
Other expenses increased by RM0.85 million or 39.17% from RM2.17 million in FYE
2019 to RM3.02 million in FYE 2020. The increase was mainly attributable to the
increase in depreciation on right-of-use assets of RM0.74 million from RM1.69 million
in FYE 2019 to RM2.43 million in FYE 2020 due to acquisition of additional motor
vehicles as well as plant and machinery under hire purchase arrangement and rental
obligation arising from rented offices.
Other expenses increased by RM0.27 million or 8.94% from RM3.02 million in FYE
2020 to RM3.29 million in FYE 2021. The increase was mainly attributable to the
increase in depreciation on plant and machinery of RM0.82 million from RM0.57
million in FYE 2020 to RM1.39 million in FYE 2021 (due to reclassification of right-of-
use assets to plant and machinery after full settlement on hire purchase
arrangement) and uncollectible deposits written off of RM0.11 million for prior years’
3 completed projects. These uncollectible deposits were overdue for more than 7
years. After many unsuccessful attempts to obtain response and payment from local
authorities, the management decided to write off the deposit in FYE 2021.
The increase was offset by the decrease in depreciation of right-of-use assets of

RM0.65 million due to reclassification of right-of-use assets to plant and machinery of
RM1.49 million.
Other expenses increased by RM0.10 million or 9.80% from RM1.02 million in FPE
2021 to RM1.12 million in FPE 2022. The increase was mainly attributable to the
increase in depreciation on plant and machinery of RM0.14 million from RM0.39
million in FPE 2021 to RM0.53 million in FPE 2022 (mainly due to reclassification of
right-of-use assets to plant and machinery following the full settlement on hire
purchase arrangement.
The increase was offset by the decrease in depreciation of right-of-use assets of

RM0.04 million due to reclassification of right-of-use assets to plant and machinery of
RM0.53 million.
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Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
(vi) Net impairment losses on financial assets and contract assets
Audited
FYE 2018 FYE 2019 FYE 2020 FYE 2021
Impairment losses: RM’000 RM’000 RM’000 RM’000
Trade receivables
- Individually impaired under MFRS 786 - 889 -
139/9
- Collectively impaired under MFRS 9 - 628 551 2,200
- Reversal of impairment loss - (36) - -
Contract assets
- Collectively impaired under MFRS 9 - - - 1,349
- Reversal of impairment loss - - - -
Net impairment losses on financial 786 592 1,440 3,549
Unaudited Audited
FPE 2021 FPE 2022
Impairment losses: RM’000 RM’000
Trade receivables
- Individually impaired under MFRS - -
139/9
- Collectively impaired under MFRS 9 550 731
- Reversal of impairment loss (67) (21)
Contract assets
- Collectively impaired under MFRS 9 730 31
- Reversal of impairment loss - (326)
Net impairment losses on financial 1,213 415
In the application of MFRS 139’s impairment requirements, our Group recognises

credit losses when there is evidence of a trigger loss event. MFRS 9 replaces the
MFRS 139 from 1 January 2018. In the application of MFRS 9’s impairment
requirements, our Group estimated a lifetime expected credit loss allowance for all
trade receivables and contract assets.
MFRS 139 or MFRS 9 does not provide general guidance as to when expected credit
losses should be measured on an individual or collective basis. However, it states that
if an entity does not have reasonable and supportable information that is available
without undue cost or effort to measure lifetime expected credit losses on an
individual basis, then it measures lifetime expected credit losses on a collective basis,
by considering comprehensive credit risk information.
We develop the expected loss rates based on the payment profiles of past sales and
the corresponding historical credit losses and adjust for qualitative and quantitative
reasonable and supportable forward-looking information.
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No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
Net impairment losses on financial assets decreased by RM0.20 million or 25.32%,

from RM0.79 million in FYE 2018 to RM0.59 million in FYE 2019 mainly attributable to
absence of individually impaired trade receivable but increase in collectively impaired
trade receivable. The increase in impairment losses on collectively impaired trade
receivables is offset by the reversal of impairment loss on trade receivables of RM0.04
million in FYE 2019 whereby the amount impaired were subsequently collected.
Net impairment losses on financial assets increased by RM0.85 million or 144.07%,

from RM0.59 million in FYE 2019 to RM1.44 million in FYE 2020. In FYE 2020, where
the trade receivable amounted to RM0.89 million for two customers under substation
engineering services segment were individually impaired.
Net impairment losses on financial assets increased by RM2.11 million or 146.53%,

from RM1.44 million in FYE 2020 to RM3.55 million in FYE 2021 mainly attributable to
increase in collectively impaired trade receivables and contract assets as a result of
higher trade receivables and contract assets.
Net impairment losses on financial assets decreased by RM0.79 million or 65.29%,

from RM1.21 million in FPE 2021 to RM0.42 million in FPE 2022 mainly attributable to
reversal of impairment loss on contract assets as a result of increase in the
recoverable amount of contract assets as well as reduction in impairment of contract
assets in FPE 2022 which was offset by slight increase in collectively impaired trade
receivables.
(vii) Finance cost
Audited
FYE 2018 FYE 2019 FYE 2020 FYE 2021
RM’000 % RM’000 % RM’000 % RM’000 %
Interest expense on:
Bankers' acceptances - - 86 17.37 113 16.72 98 15.22
Bank overdrafts 2 0.71 1 0.20 2 0.30 1 0.15
Letter of credit 5 1.79 - - 2 0.30 - -
Lease liabilities 247 88.21 306 61.82 372 55.02 287 44.56
Term loans 26 9.29 102 20.61 172 25.44 217 33.70
Trust receipts - - - - 15 2.22 41 6.37
280 100.00 495 100.00 676 100.00 644 100.00
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Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
Unaudited Audited
FPE 2021 FPE 2022
RM’000 % RM’000 %
Interest expense on:
Bankers' acceptances 31 18.90 15 10.79
Bank overdrafts 1 0.61 *
- -
Letter of credit - - - -
Lease liabilities 89 54.27 65 46.76
Term loans 25 15.24 45 32.38
Trust receipts 18 10.98 14 10.07
164 100.00 139 100.00
* Less than RM500
Finance costs increased by RM0.22 million from RM0.28 million in FYE 2018 to
RM0.50 million in FYE 2019. The increase was mainly attributable to the increase in
interest on bankers’ acceptances, lease liabilities and term loans. During FYE 2019,
our Group obtained the following additional banking facilities:
(i) bankers’ acceptances of RM5.28 million for purchase of raw materials and
consumables;
(ii) term loan of RM2.90 million mainly for the purchase of investment properties;
and
(iii) additional hire purchase facility of RM3.07 million for purchase of new motor
vehicles and plant and machinery.
Finance costs increased by RM0.18 million from RM0.50 million in FYE 2019 to
RM0.68 million in FYE 2020. The increase was mainly attributable to the increase in
interest on lease liabilities, bankers’ acceptances, bank overdrafts, letter of credit,
term loans and trust receipts. During FYE 2020, our Group obtained the following
additional banking facilities:
(i) term loans of RM0.13 million to finance the business loan level term assurance,
in relation to directors’ guarantee to Alliance Bank Berhad for RM4.39 million
banking facility;
(ii) bankers’ acceptances of RM6.76 million for the purchase of raw materials and
consumables;
(iii) trust receipts of RM1.70 million for the purchase of raw materials and
consumables; and
(iv) hire purchase facility of RM3.33 million for purchase of new motor vehicles,
plant and machinery.
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Finance costs decreased by RM0.04 million from RM0.68 million in FYE 2020 to
RM0.64 million in FYE 2021. The decrease was mainly attributable to decrease in
interest on lease liabilities and bankers’ acceptances.
Finance costs decreased by RM0.02 million from RM0.16 million in FPE 2021 to
RM0.14 million in FPE 2022. The decrease was mainly attributable to decrease in
interest on lease liabilities, bankers’ acceptances and trust receipts.
(viii) PBT and PAT

PBT (RM’000) 9,945 8,713 7,658 10,538 2,113 3,730
PBT margin (%) 19.22 13.27 11.26 9.15 7.05 10.98
PAT (RM’000) 7,367 6,367 5,662 8,129 1,561 3,044

PAT margin (%) 14.23 9.69 8.33 7.06 5.21 8.96
We recorded a decrease in PBT of RM1.24 million or 12.46% from RM9.95 million for
FYE 2018 to RM8.71 million for FYE 2019, mainly due to the higher cost of sales,
depreciation expense, lease expenses and staff costs. Our PBT margin decreased
from 19.22% for FYE 2018 to 13.27% for FYE 2019, mainly attributed to the lower
gross profit margin in FYE 2019.
Correspondingly, our PAT margin decreased from 14.23% in FYE 2018 to 9.69% in
FYE 2019, while our PAT decreased by RM1.00 million from RM7.37 million in FYE
We recorded a decrease in PBT of RM1.05 million or 12.06% from RM8.71 million in

FYE 2019 to RM7.66 million in FYE 2020, mainly due to higher depreciation expense,
impairment loss on trade receivables (RM0.81 million), interest expense and staff
costs. Our PBT margin decreased from 13.27% in FYE 2019 to 11.26% in FYE 2020,
mainly attributed to the aforementioned factors.
FYE 2020, while our PAT decreased by RM0.71 million from RM6.37 million in FYE
We recorded an increase in PBT of RM2.88 million or 37.60% from RM7.66 million in

FYE 2020 to RM10.54 million in FYE 2021, mainly due to higher gross profit. Despite
the increase in PBT, our PBT margin decreased from 11.26% in FYE 2020 to 9.15% in
FYE 2021, mainly attributed to the gross profit margin reduced from 25.46% in FYE
2020 to 21.75% in FYE 2021.
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Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
FYE 2021. Our PAT increased by RM2.47 million from RM5.66 million in FYE 2020 to
RM8.13 million in FYE 2021 attributed to the aforementioned factor in PBT.
We recorded an increase in PBT of RM1.62 million or 76.78% from RM2.11 million in

FPE 2021 to RM3.73 million in FPE 2022, mainly due to higher gross profit and lower
net impairment losses on contract assets for FPE 2022 as compared to FPE 2021.
Therefore, our PBT margin increased from 7.05% in FPE 2021 to 10.98% in FPE
2022, mainly attributed to the aforementioned factors.
Correspondingly, our PAT margin increased from 5.21% in FPE 2021 to 8.96% in FPE
2022, while our PAT increased by RM1.48 million from RM1.56 million in FPE 2021 to
RM3.04 million in FPE 2022.
(ix) Taxation

Taxation (RM’000) 2,578 2,346 1,996 2,409 552 686
Statutory tax rate 24.00 24.00 24.00 24.00 24.00 24.00
(%)
Effective tax rate (1)
25.92 (1)
26.93 26.06 22.86 26.12 18.39
(%)
Note:
(1) We qualified for lower statutory tax rates of 18.0% and 17.0% on the first
chargeable income of RM0.50 million for FYE 2018 and 2019, respectively.
The effective tax rate for the FYE 2018 to 2021, FPE 2021 and FPE 2022 was
25.92%, 26.93%, 26.06% 22.86%, 26.12% and 18.39%. The effective tax rate for
FYE 2019, FYE 2020 and FPE 2021 was higher than the statutory tax rate of 24.00%
due to the non-allowable expenses including impairment loss on trade receivables,
certain professional fees, certain licence fees as well the tender documentation fee on
unsuccessful tenders.
The effective tax rate for FYE 2021 reduced from 26.06% in FYE 2020 to 22.86% in
FYE 2021 attributable to the overprovision of deferred taxation in the previous
financial year.
The effective tax rate reduced from 26.12% in FPE 2021 to 18.39% in FPE 2022
attributable to overprovision of deferred taxation in previous financial years.
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Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
12.2.3 Review of financial position
(i) Assets

As at 31 As at 31
2018 2019 2020 2021 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
ASSETS
Non-current assets
Property, plant and 710 1,869 1,794 2,141 2,488 2,408
equipment
Investment properties 672 657 642 627 637 622
Right-of-use assets 4,843 8,416 7,229 5,408 5,687 4,506
Deferred tax assets - - - 1,712 939 1,988
assets
Current assets
Trade receivables 7,925 13,280 8,623 29,767 13,164 26,986
Other receivables, deposits 6,791 6,514 8,050 8,602 8,366 8,710
and prepayments
Contract assets 22,316 27,882 37,567 49,063 39,339 49,230
Amount owing by directors 150 - - - - -
Current tax assets - - - 202 - -
Fixed deposit with licensed 903 1,712 2,260 2,905 2,514 4,062
banks
Cash and bank balances 957 3,203 3,774 8,353 3,586 8,673
Total current assets 39,042 52,591 60,274 98,892 66,969 97,661
Non-current assets - 2,200 2,200 - 2,200 -
sale
39,042 54,791 62,474 98,892 69,169 97,661
TOTAL ASSETS 45,267 65,733 72,139 108,780 78,920 107,185
Comparison between 30 June 2018 and 30 June 2019
Total assets increased by RM20.46 million from RM45.27 million as at 30 June 2018
to RM65.73 million as at 30 June 2019. This was due to the increase in current assets
of RM13.55 million and increase in non-current assets of RM4.72 million as at 30 June
2019.
The increase in non-current asset was mainly attributable to:
(i) purchase of 7 units of motor vehicles (RM0.23 million) and plant and machinery
(RM1.20 million mainly comprising 3 units of HDD machines of RM1.05 million)
which were classified under property, plant and equipment;
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(ii) purchase of 5 units of motor vehicles (RM0.36 million) and plant and machinery
(RM5.02 million comprising 4 units of HDD machines of RM2.65 million and 1
unit of rock pipe jacking of RM2.37 million) which were classified as right-of-
use assets; and
(iii) Leasehold buildings (RM2.20 million) which classified as non-current assets

held for sale.
However, the increase in non-current assets was mainly offset by the following:
(i) RM0.47 million of depreciation charges on property, plant and equipment

during the year; and
(ii) RM1.69 million of depreciation charges on the right-of-use assets during the
year.
The increase in current assets was mainly attributable to increase in trade receivables
of RM5.36 million, increase in contract assets of RM5.57 million and increase in cash
and bank balance of RM2.25 million. Such increase was mainly due to the higher
revenue achieved during the year.
Total assets increased by RM6.41 million from RM65.73 million as at 30 June 2019 to
RM72.14 million as at 30 June 2020. This was mainly due to the increase in current
assets of RM7.68 million offset by a decrease in non-current assets of RM1.28 million
as at 30 June 2020.
The decrease in non-current asset was mainly attributable to:

(ii) RM2.43 million of depreciation charges on rights-of-use assets during the year.
The decrease in non-current assets was mainly offset by the following:
(i) purchase of 3 units of motor vehicles (RM0.13 million), plant and machinery (1
unit of telescopic excavator RM0.17 million) and office renovation (RM0.12
million) which were classified under property, plant and equipment; and
(2 units of HDD machines of RM1.21 million) as well as the rental obligation
arising from rented offices (RM0.15 million) which were classified under right-
of-use assets.
The increase in current assets was mainly attributable to:
(i) increase in contract assets of RM9.69 million due to our Group’s right to
consideration for construction works which have been performed but not yet
billed as at the reporting date; and
(ii) increase in other receivables, deposits and prepayments of RM1.54 million

mainly due to deposit for performance bonds of RM0.76 million, prepayment of
professional fee of RM0.16 million in relation to the listing exercise and prepaid
lease liabilities arising from hire purchase arrangement of RM0.21 million.
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Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
However, the increase in current assets was mainly offset by the decrease in trade
receivables of RM4.66 million. The lower trade receivable in FYE 2020 is due to
certain construction works performed and pending certification by our customers
therefore no invoices were issued. This resulted in the increase in contracts assets by
RM9.69 million in FYE 2020.
Total assets increased by RM36.64 million from RM72.14 million as at 30 June 2020
to RM108.78 million as at 30 June 2021. This was due to the increase in current
assets of RM38.62 million and increase in non-current assets of RM0.22 million as at
30 June 2021.
The increase in non-current asset was mainly attributable to:
(i) purchase of plant and machinery of RM0.17 million (comprising 1 unit of

locating system RM0.05 million, 1 unit of mud pump power pack of RM0.04
million, 1 unit of cantilevel of RM0.05 million and 2 units of pipe and cable
locators of RM0.03 million) which were classified under property, plant and
equipment;
(3 units of HDD machines of RM1.19 million) as well as the rental obligation
arising from rented apartment (RM0.03 million) which were classified under
right-of-use assets; and
(iii) increase in deferred tax assets of RM1.71 million.
The increase in non-current assets was mainly offset by the following:

(ii) RM1.78 million of depreciation charges on right-of-use assets during the year.
The increase in current assets was attributable to:
(i) increase in trade receivable of RM21.14 million due to increased revenue and
invoice billed to customers;
(ii) increase in contract assets of RM11.50 million due to our Group’s right to
billed as at the reporting date;
(iii) increase in other receivables, deposits and prepayments of RM0.55 million

mainly due to increase in deposit of RM0.99 million (mainly for the bankers’
guarantees and permit deposit paid to local councils in relation to projects) and
offset by the decrease in prepayment of RM0.48 million (mainly due to the
prepaid listing expenses and prepaid purchase in FYE 2020, subsequently
recognised as expenses in FYE 2021);
(iv) increase of RM5.22 million in fixed deposits and cash and bank balances due to
internally generated funds. The increase in fixed deposits in FYE 2021 was due
to increase in fixed deposit pledged with licensed banks as collateral for
Group’s banking facilities; and
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(v) increase in current tax assets of RM0.20 million.
Comparison between 30 June 2021 and 31 October 2021
Total assets decreased by RM1.59 million from RM108.78 million as at 30 June 2021
to RM107.19 million as at 31 October 2021. This was due to the decrease in current
assets of RM1.23 million and a decrease in non-current assets of RM0.36 million as at
31 October 2021.
The decrease in non-current asset was mainly attributable to RM1.12 million of

depreciation charges on rights-of-use assets, investment properties and property,
plant and equipment during the period.
The decrease in non-current assets was partially offset by the following:
(i) increase in deferred tax assets by RM0.28 million;
(ii) purchase of additional plant and machinery of RM0.20 million (comprising

testing equipment for underground utilities engineering services and solutions
segment) and 2 units of motor vehicles of RM0.05 million which were classified
under property, plant and equipment; and
(iii) purchase of 3 units of motor vehicles (RM0.22 million) which were classified
under right-of-use assets.
The decrease in current assets was attributable to:
(i) decrease in trade receivable of RM2.78 million due to improved collection from
customers during FPE 2022; and
(ii) decrease in current tax assets of RM0.20 million.
The decrease in current assets was offset by:
(i) increase in fixed deposits and cash and bank balances of RM1.48 million due to
internally generated funds. The increase in fixed deposits in FPE 2022 was due
to increase in fixed deposit pledged with licensed banks as collateral for
Group’s banking facilities;
(ii) increase in contract assets of RM0.16 million due to our Group’s right to
billed as at the reporting date; and
(iii) increase in other receivables, deposits and prepayments of RM0.11 million due
to increase in deposit of RM0.19 million mainly attributable to an increase in
bank guarantee paid to local authority of RM0.15 million. The increase was
offset by a decrease in prepayments of RM0.04 million.
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(ii) Liabilities

As at 31 As at 31
2018 2019 2020 2021 2020 2021
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Non-current liabilities
Term loans 522 984 805 2,256 2,116 2,153
Deferred tax liabilities 2,986 994 297 - - -
liabilities
Current liabilities
Trade payables 10,859 19,104 23,107 42,228 26,285 43,166
Other payables and 1,190 4,336 1,433 1,345 978 1,392
accruals
Contract liabilities 1,269 1,127 2,750 12,380 3,559 10,472
Term loans 26 503 428 763 882 562
Bankers' acceptances - 2,248 1,573 2,490 2,601 1,290
Trust receipts - - 504 1,644 - 242
Bank overdrafts - 78 - - - -
Current tax liabilities 2,183 2,144 1,860 2,278 2,420 2,185
Total current liabilities 17,288 31,817 34,467 65,383 39,241 61,100
Liabilities directly - 1,862 1,822 - 1,814 -
associated with non-
current assets
sale
17,288 33,679 36,289 65,383 41,055 61,100
TOTAL LIABILITIES 23,198 38,345 39,960 69,532 45,180 64,894
Total liabilities increased by RM15.15 million from RM23.20 million as at 30 June 2018
to RM38.35 million as at 30 June 2019. The increase was attributable to the increase
in current liabilities by RM14.53 million and increase in liabilities directly associated
with non-current assets classified as held for sale of RM1.86 million.
The increase in total liabilities was partially offset by the decrease in non-current
liabilities mainly attributable to the decrease in deferred tax liabilities of RM1.99
million.
The increase in current liabilities was mainly attributable to:
(i) increase in trade payables of RM8.25 million in line with the higher purchase
and business growth;
(ii) increase in other payables and accruals of RM3.15 million mainly attributable to
outstanding balance for the purchase of machinery of RM2.09 million and
accrued project costs of RM1.09 million; and
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(iii) increase in bankers’ acceptances of RM2.25 million for the purchase of raw
materials and consumables such as pipes, cables and substation steel
structure.
to RM39.96 million as at 30 June 2020. This was mainly attributable to the increase in
trade payables of RM4.00 million and increase in contract liabilities of RM1.62 million
which is in line with the higher revenue and business growth.
The increase in total liabilities was mainly offset by:
(i) decrease in other payables and accruals of RM2.90 million mainly due to
settlement of RM2.09 million outstanding balance for the purchase of
machinery in the FYE 2019; and
(ii) decrease in deferred tax liabilities of RM0.70 million and decrease in bankers’
acceptances of RM0.68 million.
to RM69.53 million as at 30 June 2021. The increase was mainly attributable to the
increase in current liabilities of RM30.92 million and non-current liabilities of RM0.48
million.
The increase in non-current liabilities was attributable to the increase in term loans
classified as non-current liabilities of RM1.45 million as our Group drew down on new
term loans of RM2.30 million in FYE 2021. The increase in non-current liabilities was
offset by the decrease in deferred tax liabilities of RM0.30 million and decrease in
lease liabilities of RM0.68 million.
The increase in current liabilities was mainly attributable to:
(i) increase in trade payables of RM19.12 million in line with the higher purchase
and business growth;
(ii) increase in contract liabilities of RM9.63 million mainly comprised the deposit
received for the mobilisation fee on new projects in line with the increase in
business growth;
(iii) increase in term loans, bankers’ acceptances and trust receipts of RM2.39
million in FYE 2021; and
(iv) increase in current tax liabilities of RM0.42 million.
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Comparison between 30 June 2021 and 31 October 2021
Total liabilities decreased by RM4.64 million from RM69.53 million as at 30 June 2021
to RM64.89 million as at 31 October 2021. This was mainly attributable to the
decrease current liabilities mainly due to decrease in lease liabilities, term loans,
banker acceptances and trust receipts amounting to RM3.27 million as well as
decrease in contract liabilities of RM1.91 million as deposit and its related advances
received from customers in FYE 2021 were subsequently recognised as revenue in
FPE 2022. The decrease was offset by an increase in trade payables of RM0.94
million, mainly due to higher purchasing activities during FPE 2022.
12.2.4 Review of cash flows

FYE FYE FYE FYE FPE FPE
2018 2019 2020 2021 2021 2022
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Net cash from/ (for) operating 3,468 6,953 6,431 5,343 (1,029) 5,701
activities
Net cash (for)/ from investing (392) (7,017) (1,090) 1,759 (419) (470)
activities
Net cash (for)/ from financing (2,546) 1,981 (4,923) (2,523) 1,260 (3,911)
activities
Net increase in cash and cash 530 1,917 418 4,579 (188) 1,320
equivalents
Effect of foreign exchange (1) (1)
(-) 1 (1)
(-) (1)
(-) (1)
(-)
translation
Cash and cash equivalents at the 909 1,438 3,355 3,774 3,774 8,353
beginning of the financial year/
period
Cash and cash equivalents at 1,438 3,355 3,774 8,353 3,586 9,673
the end of the financial year/
period
Note:
FYE 2018
Net cash from operating activities
In FYE 2018, our Group recorded net cash inflows from operating activities of RM3.47
million. We collected RM46.97 million from our customers and received income tax refund of
RM0.05 million, which was offset by cash paid amounting to RM43.56 million for the
following:
(i) approximately RM40.36 million was paid to subcontractors and suppliers;
(ii) approximately RM2.00 million was paid for prepayments and deposits (mainly
deposits to our clients in relation to our projects and performance bond paid in
relation to our projects); and
(iii) approximately RM1.20 million paid in income tax.
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Net cash for investing activities
In FYE 2018, our Group recorded net cash outflow from investing activities of RM0.39
million. This was attributable to the placement of fixed deposits with licensed banks of
RM0.31 million and purchase of property, plant and equipment (mainly comprising 1 unit of
HDD machine and 4 units of motor vehicles) of RM0.31 million.
The cash outflow was partially offset by interest income from fixed deposits of RM0.11
million and proceeds from disposal of property, plant and equipment (comprising 3 units of
motor vehicles) of RM0.12 million.
Net cash for financing activities
In FYE 2018, we recorded net cash outflow from financing activities amounted to RM2.55
million, which was attributable to the following:
(i) net repayment of lease liabilities of RM1.76 million;
(ii) advances to directors of RM0.15 million;
(iii) dividend for FYE 2018 paid of RM0.50 million; and
(iv) interest paid of RM0.28 million mainly for lease liabilities and term loans.
The cash outflow was partially offset by proceeds from issuance of ordinary shares of
RM0.15 million.
FYE 2019
In FYE 2019, our Group recorded net cash inflow from operating activities of RM6.95
million. We collected RM54.21 million from our customers and received income tax refund of
RM0.02 million, which was offset by cash paid amounting to RM47.28 million for the
following:
(ii) approximately RM0.28 million was paid for prepayments and deposits (mainly deposit
paid for the performance bonds in relation to our projects); and
million. This was attributable to the following:
(i) additions of right-of-use assets of RM4.53 million comprising the purchase of 1 unit of
rock pipe jacking, 5 units of motor vehicles and 4 units of HDD machines;
(ii) placement of fixed deposits with licensed banks of RM1.06 million; and
(iii) purchase of property, plant and equipment of RM1.49 million comprising the purchase
of 7 units of motor vehicles and 2 units of HDD machines.
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The cash outflow was offset by interest income from fixed deposits of RM0.06 million.
Net cash from financing activities
In FYE 2019, we recorded net cash inflow from financing activities amounted to RM1.98
million, which was mainly attributable to the following:
(i) drawdown of a total of RM8.18 million from term loans and bankers’ acceptances;
(ii) repayment received from directors of RM0.15 million; and
(iii) proceeds from issuance of ordinary shares of RM0.20 million.
The cash inflow was offset by the following payments:
(i) a total of RM5.40 million net repayment of lease liabilities, term loans and bankers’
acceptances;
(ii) dividend for FYE 2019 paid of RM0.65 million; and
(iii) interest paid of RM0.50 million mainly for lease liabilities, term loans and banker’s
acceptances.
FYE 2020
million. We collected RM63.43 million from our customers, which was offset by cash paid
amounting to RM57.00 million for the following:
(ii) approximately RM1.20 million was paid for prepayment and deposits (mainly deposits
to our clients in relation to our projects and permit deposits paid to local authorities
for our projects); and
million. This was attributable to the following:
(i) additions of right-of-use assets of RM0.18 million comprising 2 units of motor vehicles
and 2 units of HDD machines;
(ii) placement of fixed deposits with licensed banks of RM0.78 million; and
(iii) purchase of property, plant and equipment of RM0.50 million comprising 5 units of
motor vehicles, 1 unit of telescopic excavator and office renovation.
The cash outflow was offset by interest income from fixed deposits of RM0.08 million as
well as total proceed from disposal of property, plant and equipment and right-of-use assets
of RM0.29 million as a result of disposal of 1 unit of HDD machine.
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million, which was attributable to the following:
(i) drawdown of a total of RM8.58 million from term loans, bankers’ acceptances and
trust receipts; and
(ii) proceeds from issuance of ordinary shares of RM0.25 million.
(i) a total of RM11.96 million of net repayment of lease liabilities, term loans, bankers’
acceptances and trust receipts;
(iii) interest paid of RM0.68 million mainly for lease liabilities, term loans, trust receipts
and banker’s acceptances.
FYE 2021
million. We collected RM100.71 million from our customers, which was offset by cash paid
amounting to RM95.46 million for the following:
(ii) approximately RM0.82 million was paid for prepayment and deposits (mainly permit
deposits paid to local authorities in relation to our projects); and
Net cash from investing activities
In FYE 2021, our Group recorded net cash inflow from investing activities of RM1.76 million.
This was mainly attributable to the proceeds from disposal of assets held for sale of RM2.41
million (being 7 units of leasehold building at Kelana Jaya, Selangor). These properties were
initially acquired by our Group with the intention of using them as our corporate office
headquarters. Our Group subsequently decided to continue to remain at the existing office
and seeing that we do not have any immediate use of these properties, our Group decided
to sell off the non-core assets in line with the IPO. The cash inflow was partially offset
mainly by placement of fixed deposits with licensed banks of RM0.65 million.
million, which was attributable to the cash inflow from drawdown of a total of RM13.33
million from term loans, bankers’ acceptances and trust receipts.
acceptances and trust receipts;
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(iii) interest paid of RM0.64 million mainly for lease liabilities, term loans, trust receipts
FPE 2022
In FPE 2022, our Group recorded net cash inflow from operating activities of RM5.70 million.
We collected RM31.46 million from our customers, which was offset by cash paid amounting
to RM25.76 million for the following:
(i) approximately RM24.91 million was paid to subcontractors and suppliers; and
(ii) approximately RM0.85 million paid in income tax.
In FPE 2022, our Group recorded net cash outflow from investing activities of RM0.47
million. This was mainly attributable to the placement of fixed deposits with licensed banks
of RM0.16 million and purchase of property, plant and equipment of RM0.26 million
comprising additional plant and machinery of RM0.20 million (namely testing equipment for
underground utilities engineering segment) and 2 units of motor vehicles of RM0.05 million.
In FPE 2022, we recorded net cash outflow from financing activities amounted to RM3.91
million, which was mainly attributable to:
acceptances and trust receipts; and
(ii) interest paid of RM0.14 million mainly for lease liabilities, term loans, trust receipts
The cash outflow was offset by the cash inflow from drawdown of a total of RM1.29 million
from bankers’ acceptances.
12.3 LIQUIDITY AND CAPITAL RESOURCES
12.3.1 Working capital
Our business is financed by a combination of credit extended by trade payables, internal

and external sources of funds. Our internal sources of funds are shareholders’ equity and
cash generated from operations while our external sources of funds comprise lease
liabilities, term loans and trade facilities. The principal uses of these funds are for working
capital purposes and purchases of plant and machinery, properties and motor vehicles.
We monitor our working capital to ensure that our financial obligations can be met when
due, by, inter alia
(i) ensuring a healthy bank balances and cash for payment of our short-term working
capital needs;
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(ii) monitoring our trade receivables and its aging monthly, and following up closely to
ensure prompt receipt of amounts due from our customers (we have dedicated
account team to work closely with our project team, to assess and prepare the works
to be submitted to our customers in our progress claims). This measure has proven to
be effective while allowing us to maintain cordial relationship with our customers;
(iii) monitoring our trade payables and its aging monthly, to ensure that payments to our
suppliers and subcontractors are made on a planned basis; and
(iv) monitoring our bank and borrowing payments.
Based on our audited combined statements of financial position as at 31 October 2021, our
cash and bank balances amounted to RM8.67 million, and total borrowings were RM7.68
million. As at 31 October 2021, our gearing ratio was 0.18 times and current ratio was 1.60
times.
Our Board is confident, after taking into consideration the following and above statement,
that our working capital will be sufficient for our existing and foreseeable requirements for a
period of 12 months from the date of this Prospectus:
(i) cash and bank balances as at LPD of approximately RM4.05 million (excluding
restricted cash and pledged fixed deposits with financial institutions);
(ii) our banking facilities as at LPD (excluding lease liabilities) up to a total limit of
RM15.34 million, of which RM9.80 million has been utilised;
(iii) our additional billing from ongoing and newly completed contracts issued from 31
October 2021 up to the LPD of RM34.82 million;
(iv) our pro forma NA position and gearing level as at 31 October 2021 after the
Acquisition and Public Issue (and utilisation of proceeds) of RM57.56 million and 0.06
times respectively;
(v) our expected future cash flows from operations notwithstanding the impact from
COVID-19; and
(vi) the proceeds expected to be raised from our Public Issue.
At this juncture, we do not foresee any circumstances which may materially affect our
liquidity.
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12.4 BORROWINGS AND INDEBTEDNESS
We utilise banking facilities such as bankers’ acceptances and trust receipts to finance purchases of raw materials while term loans are used to finance the
acquisition of properties and working capital. Lease liabilities are used to finance the purchase of plant and machineries and motor vehicles.
Our total outstanding borrowings as at 31 October 2021 stood at RM7.68 million, details of which are set out below. All our borrowings are interest-
bearing and denominated in RM.
Number of
borrowing/ As at 31
facility/ Tenure of Effective October
Purpose indebtedness facility Security Interest rate 2021
% per annum RM’000
Current
Bankers' • Financing the 2 4 months (a) Fixed deposits with licensed financial 3.55% - 4.31% 1,290
acceptances purchase of goods, institutions; and
products, materials
locally/overseas (b) Joint and several guarantee of the
Directors of the Group.
Trust receipts • Financing the 1 4 months (a) Fixed deposits with licensed financial 6.67% 242
purchase of goods, institutions; and
products, materials
locally/overseas (b) Joint and several guarantee of the
Lease liabilities • Purchase of plant 8 3 years Certain lease liabilities of the Group are 3.20% - 10.05% 1,791
and machinery secured by the Group’s motor vehicles and
plant and machinery under the hire purchase
(1)
• Purchase of motor 19 3 to 7 arrangements.
vehicles years
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Number of
borrowing/ As at 31
(1)
• Rental obligations 5 1 to 3
for our offices years
(based on rental
agreements)
Term loans • Purchase of 2 20 years (a) First legal charge over the Group’s 3.40% - 12.50% 562
investment leasehold buildings and investment
properties (as properties;
detailed in Section
6.11.1(i) and (ii)) (b) Fixed deposit with licensed financial
institution; and
• Working capital 6 5 years
(c) Joint and several guarantee of the
Total current borrowing 3,885
Non-current
Lease liabilities • Purchase of plant 8 3 years Certain lease liabilities of the Group are 3.20% - 10.05% 1,641
and machinery secured by the Group’s motor vehicles and
plant and machinery under the hire purchase
(1)
• Purchase of motor 19 3 to 7 arrangements.
vehicles years
(1)
• Rental obligations 3 1 to 3
for our offices years
(based on rental
agreements)
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Number of
borrowing/ As at 31
Term loans • Purchase of 2 20 years (a) First legal charge over the Group’s 3.40% - 12.50% 2,153
investment leasehold buildings and investment
properties (as properties;
detailed in Section
6.11.1(i) and (ii)) (b) Fixed deposit with licensed financial
institution; and
• Working capital 6 5 years
(c) Joint and several guarantee of the
Total non-current borrowing 3,794
Total borrowing 7,679
Pro forma gearing (times)

After Acquisitions and before the Public Issue(2) 0.18
After the Public Issue and utilisation of proceeds(3) 0.06
Notes:
(1) Wide range of tenure for lease liabilities are due to the mixture of borrowing, facility and indebtedness with different purposes.
(2) Computed based on our pro forma equity attributable to the owners of the Company of RM42.29 million in the pro forma statements of financial
position after the Acquisitions but before Public Issue and utilisation of proceeds.
(3) Computed based on our pro forma equity attributable to the owners of the Company of RM57.56 million in the pro forma statements of financial
position after the Acquisitions, Public Issue and utilisation of proceeds.
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The following table sets out the contractual cash flow and maturities of our borrowings as at 31 October 2021:
As at
31 October 2021
RM’000
Borrowings
Carrying amount 7,679
Contractual cash flow

Within the next 12 months 4,109
Later than 1 year but not later than 5 years 3,769
More than 5 years 344
Total contractual cash flow of borrowings 8,222
Separately, we have also recognised the following lease liabilities:
(1)
Purpose Tenure As at 31 October 2021
RM’000
Lease liabilities payable within 1 year Rental for offices, factory, and Between 1 and 3 years 126
workers’ accommodations
Lease liabilities payable more than 1 year Rental for offices, factory and Between 1 and 3 years 70
workers’ accommodations
Note:
(1) The details of the properties rented by our Group are as detailed in Section 6.11.2 (i), (ii), (iii), (iv) and (v).
In conjunction with our Listing, certain of our financiers have given a conditional release and/or discharge of the guarantees by substituting the same with
a corporate guarantee from our Company and/or other securities from our Group acceptable to the financiers. Until such release and/or discharge are
obtained from the respective financiers, our Directors will continue to guarantee the banking facilities extended to our Group.
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As at the LPD, we do not have any borrowings which are non-interest bearing and/or in foreign currency. We have not defaulted on payments of principal
sums and/or interests in respect of any borrowings throughout the FYE 2018 to 2021, FPE 2022 and up to LPD. As at the LPD, neither our Company nor
our subsidiaries is in breach of any terms, conditions or covenants associated with the credit arrangement or bank loan which can materially affect our
financial position and results or business operations or the investments by holders of our securities.
From FYE 2018 to 2021 and FPE 2022, we have not experienced any claw back or reduction in the facilities limit granted to us by our lenders.
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12.5 TYPES OF FINANCIAL INSTRUMENTS USED, TREASURY POLICIES AND

OBJECTIVES
Save as disclosed in Section 12.4, we do not have or utilise any other financial instruments
or have any other treasury policies. All our banking facilities are used for our business such
as working capital, purchase of raw materials and purchase of property, plant and
equipment as well as purchase of investment properties. As at 31 October 2021, save for
our lease liabilities which are based on fixed rates, all our other facilities with licensed
financial institutions are based on base lending rate plus or minus a rate which varies
depending on the type of facility.
12.6 MATERIAL CAPITAL COMMITMENTS
As at the LPD, our Group does not have any material capital commitment.
12.7 MATERIAL LITIGATION AND CONTINGENT LIABILITIES
12.7.1 Material litigation
Save as disclosed below, we are not engaged in any material litigation, claim or arbitration
either as a plaintiff or defendant, and there are no proceedings pending or threatened or of
any fact likely to give rise to any proceeding which might materially or adversely affect our
position or business as at the LPD. We will update any changes in the material litigation
(including status of the pending material litigation as disclosed below) in the announcement
of our quarterly report.
(i) Malacca Sessions Court Suit No. MA-B52NCVC-21-09/2119): MNSB v.

Montane Construction Sdn Bhd (“Montane”)
MNSB had on 17 September 2019 commenced a legal suit against Montane. On 11

February 2020, the sessions court had allowed MNSB’s summary judgement
application against Montane (“Judgement”) for the sum of RM964,422.29 being the
outstanding payment owing to MNSB for work done by MNSB for Montane, together
with interest of 5% calculated from 17 September 2019 until full settlement and cost
of RM3,000.00 (“Judgement Sum”). An impairment of RM628,383.79 and
RM336,038.50 have been provided for the outstanding payment owing to MNSB in
FYE 2018 and FYE 2019, respectively. No application for appeal was submitted by
Montane.
Following a winding up petition filed by one of its creditors, Montane was wound up
pursuant to a Court Order dated 4 March 2021. We have filed a proof of debt to the
Official Receiver as a creditor and presently, a private liquidator for Montane is in the
midst of being appointed.
(ii) Letter dated 8 December 2020 issued by Telekom Malaysia Berhad

(“Telekom”) to MNSB
MNSB has received a letter dated 8 December 2020 from Telekom notifying that a
police report has been lodged for damage caused to Telekom’s optic cables and PVC
ductway in Proton City, Perak, as a result of MNSB’s drilling activities on 2 November
2020. Presently, MNSB is in talks with Telekom to provide rectification works. As at
the LPD, no further legal action has been taken by Telekom against MNSB and on-
going communication is taking place to address the issue. The expected costs to be
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incurred for the rectification works are estimated to be RM0.12 million. No

impairment has been provided for the expected costs to be incurred.
(iii) Bandar Baru Bangi Sessions Court (Suit No. BI-A52NCvC-16-05/2021):

Telekom v. MNSB
On 20 May 2021, MNSB had been served with a writ summons and statement of
claim from Telekom, claiming for RM178,942.55 for failing to rectify the damage
caused by MNSB’s drilling activities to underground pipes and cables owned by
Telekom near Pejabat Daerah Hulu Langat in Bangi, Selangor. The parties have
subsequently reached a settlement with MNSB agreed to pay the sum of
RM178,942.55 (“Settlement Sum”) as full and final settlement and this suit has been
withdrawn by Telekom on 16 July 2021. The Settlement Sum shall be settled by way
of 9 instalment payments for a period of 9 months starting from June 2021 to
February 2022 via post-dated cheques, which have all been delivered to Telekom. No
impairment has been provided as the Settlement Sum has been fully recognised in
FPE 2022 (RM20,000.00 in FYE 2021; and RM158,942.55 in FPE 2022). Our Board is
of the view that the Settlement Sum did not have a material impact to our Group.
(iv) Malacca Magistrate's Court Suit No. MA-A73KJ-108-01/2022: Ong Kuang

Lim v Md Amir Hossain & MNSB
On 4 February 2022, MNSB (as the second defendant) had received a writ and
statement of claim from the Ong Kuang Lim’s (plaintiff) solicitors claiming that Md
Amir Hossain (first defendant) had caused a road accident while driving a forklift
which injured the plaintiff. The basis of the plaintiff’s claim against MNSB as the
second defendant is, inter alia, that MNSB as the employer of the first defendant
should be held vicariously liable for the road accident caused by the first defendant.
The reliefs sought by the plaintiff are for special damages, as well as general
damages to be assessed by Court and as such, at this juncture, the aggregate
quantum of damages sought by the plaintiff cannot be quantified. In any event, the
lawyers handling this case has expressed their views in writing that the maximum
exposure of liability of MNSB will be in the region of RM25,000 to RM30,000, based
on the letter of demand issued by the plaintiff’s solicitors on 5 February 2021
demanding for a sum of RM25,000 and 10% percent of the sum as costs.
The claim against MNSB as the second defendant is rooted on the premise that the
first defendant was performing his duties as an employee at the time of the accident
and as such, MNSB as his employer should be held vicariously liable for the actions of
the first defendant. However, MNSB confirms that the first defendant was not under
the employment of MNSB at the material time and on that basis, based on the legal
opinion from the lawyers handling the case, they are of the opinion that since the first
defendant was not under the employment of MNSB, MNSB has a good chance of
defending against the plaintiff’s claim.
MNSB has filed the statement of defence on 21 March 2022. The matter has been
fixed for trial on 20 June 2022 and the next case management will be held on 25 April
2022 for parties to file their respective documents for trial.
As at LPD, no provision has been made for the exposure of liability.
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(1395095-M)
12.7.2 Contingent liabilities
Save as disclosed below, and as at the LPD, our Directors confirm that there are no
contingent liabilities incurred by our Group, which upon becoming enforceable, may have a
material effect on our Group’s business, financial results and financial position.
As at
31 October 2021 As at LPD
RM’ 000 RM’ 000
Performance guarantee extended to third parties(1) 3,652 3,858
Note:
(1) As at LPD, the performance guarantees are issued to our customers or at the request
of our customers, in favour of third parties, being the project owners, employers or
main contractors of the projects undertaken by our Group, as security for the
performance of contractual obligations under the projects awarded. The performance
guarantees issued are mainly for or at the request of our major customers, namely
Impiana Mahir (RM0.49 million), Rentak Segar (RM0.35 million) and Pembinaan Tajri
Sdn Bhd (RM0.30 million) in connection with the projects awarded by these major
customers.
12.8 KEY FINANCIAL RATIOS
FYE 2018 FYE 2019 FYE 2020 FYE 2021 FPE 2022
Trade receivable 59 59 59 61 103

turnover (days)(1)
Trade payable 108 111 152 132 203
turnover (days)(2)
Current ratio 2.26 1.65 1.75 1.51 1.60
(times)(3)
Gearing ratio 0.21 0.39 0.33 0.29 0.18
(times)(4)
Notes:
(1) Computed based on average trade receivables over revenue multiplied by 365 days
for FYEs and 123 days for FPE 2022:
Audited
RM’000 RM’000 RM’000 RM’000 RM’000
Opening trade 8,786 7,925 13,280 8,623 29,767
receivables
Closing trade 7,925 13,280 8,623 29,767 26,986
receivables
Revenue 51,754 65,676 68,008 115,200 33,981
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202001038774 (1395095-M)
(1395095-M)
(2) Computed based on average trade payables over costs of sales multiplied by 365
days for FYEs and 123 days for FPE 2022:
Audited
RM’000 RM’000 RM’000 RM’000 RM’000
Opening trade 10,479 10,859 19,104 23,107 42,228
payable
Closing trade 10,859 19,104 23,107 42,228 43,166
payable
Cost of sales 36,119 49,096 50,691 90,139 25,846
(3) Computed based on current assets over current liabilities as at the end of the
respective financial years/period.
(4) Computed based on the total borrowings and lease liabilities over total equity as at
the end of the respective financial years/period.
12.8.1 Trade receivables turnover
The normal trade credit terms granted by our Group to our customers is 30 days from the
date of invoice. Other credit terms are assessed and approved on a case-by-case basis. Our
credit terms to customers are assessed and approved on individual customer basis taking
into consideration various factors such as relationship with customers, customers' payment
history, credit worthiness, quantum of amount owing as well as the reason for the
customers' inability to pay within the normal credit period. We use ageing analysis to
monitor the credit quality of our trade receivables.
Our Group has outstanding trade receivables of approximately RM26.99 million as at 31

October 2021 and there is no outstanding retention sum as at 31 October 2021. Our trade
receivable turnover periods are computed without taking into consideration the retention
sums for FYE 2018, FYE 2019, FYE 2020, FYE 2021 and FPE 2022 were between 59 days
and 103 days, which is higher than our credit period.
Although the credit period as per contractual terms is 30 days, there is still a gap between
contractual terms and actual collections as indicated in the trade receivable turnover days.
This is mainly due to our clients’ lengthy and time-consuming internal process involving
verification by various internal departments before payment is processed. This higher
receivable turnover period is the standard practice collection period for the construction
industry in Malaysia. However, we opt not to extend our credit period in our contracts to
reflect the actual practice as clients may take even longer time to pay if longer payment
terms are granted.
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202001038774 (1395095-M)
(1395095-M)
The ageing analysis of our trade receivables as at 31 October 2021 is as follows:
Exceeding credit period

Within 31 to 61 - More
credit 1 to 30 60 90 than 90
period days days days days Total
Gross trade A 7,050 10,335 395 79 15,643 33,502
receivables (RM’000)
Less: Impairment B (279) (316) (27) (4) (5,890) (6,516)
(RM'000)
Net receivables C= 6,771 10,019 368 75 9,753 26,986
(RM'000) A-B
% of total trade 25.09 37.13 1.36 0.28 36.14 100.00
receivables (%)
Subsequent collections D (1,880) (8,634) (5) (5) (7,260) (17,784)

up to the LPD
(RM’000)
Outstanding gross E= 5,170 1,701 390 74 8,383 15,718
trade receivables A-D
(RM’000)
As at the LPD, we have collected RM17.78 million, representing 53.08% of our gross trade
receivables as at 31 October 2021.
The outstanding trade receivables that are more than 90 days as at LPD of RM8.38 million,
mainly due to the COVID-19 situation where some of our customers took a longer time to
pay due to their cash constraints. Our management closely monitors the recoverability of
the trade receivables on a regular basis, and, when appropriate, provides for specific
impairment of these trade receivables. Our Board is of the view that the remaining trade
receivables are recoverable and no further provision for impairment is required after taking
into consideration our relationship with the customers, as well as our efforts to improve
collection with various credit control measures to reduce the potential exposure on credit
risk.
12.8.2 Trade payables turnover
The normal trade credit terms granted to our Group by our suppliers for FPE 2022 range
from 30 days to 120 days (30 to 120 days for FYE 2018, FYE 2020 and FYE 2021, and 30 to
90 days for FYE 2019) which are dependent on the mix of suppliers and subcontractors as
well as the type of supplies or services procured. Our average trade payables turnover
period for the FYE 2018, FYE 2019, FYE 2020, FYE 2021 and FPE 2022 were 108 days, 111
days, 152 days, 132 days and 203 days respectively.
Certain payables exceeded the credit period due to the COVID-19 situation where we were
more prudent with our cash conservation to weather through the pandemic situation. We
have established a long-standing relationship with our suppliers and subcontractors and we
have not encountered any issue in spite of the slower payment to them. Our suppliers and
subcontractors have allowed a longer period for payment in view of our established
relationship with them, our payment history and our credentials.
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202001038774 (1395095-M)
(1395095-M)
Our trade payables turnover period increased to 203 days in the FPE 2022 as compared to
FYE 2021, which was above the normal credit term granted by our creditors as a result of
steps taken by our Group to manage our working capital due to slow collections from trade
receivables, and hence resulted in a longer period taken for the issuance of payments to
subcontractors and suppliers.
The ageing analysis of our trade payables as at 31 October 2021 is as follows:
Exceeding credit period

Within More
credit 1 to 30 31 to 60 61 - 90 than 90
period days days days days Total
Trade payables A 6,603 4,890 3,655 1,938 26,080 43,166
(RM’000)
% of total trade 15.29 11.33 8.47 4.49 60.42 100.00
payables (%)
Subsequent B (3,696) (2,172) (2,300) (683) (16,287) (25,138)

payments up to the
LPD (RM’000)
Outstanding trade C= 2,907 2,718 1,355 1,255 9,793 18,028
payables (RM’000) A-B
As at the LPD, we have outstanding trade payables of RM18.03 million, representing

41.76% of our trade payables as at 31 October 2021.
The outstanding trade payables that are more than 60 days and 90 days as at LPD of
RM1.26 million and RM9.79 million, respectively, mainly consist of amount due to Bina
Plastic Industries Sdn Bhd of RM7.05 million of which Bina Plastic Industries Sdn Bhd allows
us to settle progressively, in view of our established relationship with them for 14 years. Our
Group has been a supportive customer to Bina Plastic Industries Sdn Bhd as demonstrated
in our purchases from Bina Plastic Industries Sdn Bhd from FYE 2018 to FYE 2021 and FPE
2022 (FYE 2018: RM7.12 million; FYE 2019: RM9.23 million; FYE 2020: RM11.19 million;
FYE 2021: RM20.53 million; FPE 2022: RM5.73 million).
As at the LPD, there are no disputes in respect of any trade payables and our Board
confirms that there had been no and no legal actions initiated by our suppliers or
subcontractors to demand for payment from us in the past nor present.
12.8.3 Current ratio
Our current ratios throughout the financial years/period under review are as follows:
Audited
RM’000 RM’000 RM’000 RM’000 RM’000
Current assets 39,042 52,591 60,274 98,892 97,661
Current liabilities (17,288) (31,817) (34,467) (65,383) (61,100)
Net current assets 21,754 20,774 25,807 33,509 36,561
Current ratio (times) 2.26 1.65 1.75 1.51 1.60
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202001038774 (1395095-M)
(1395095-M)
Our current ratio ranged between 1.51 times and 2.26 times for the financial years/period
under review.
Our current ratio decreased from 2.26 times in FYE 2018 to 1.65 times for FYE 2019 mainly
due to proportionately higher increase in trade payables, other payables and accruals as
well as bankers’ acceptances as compared to the increase in trade receivables and contract
assets.
For FYE 2020, our current ratio increased to 1.75 times from 1.65 times in FYE 2019 mainly
due to an increase in contract assets offset by the decrease in trade receivables.
For FYE 2021, our current ratio decreased from 1.75 times in FYE 2020 to 1.51 times in FYE
2021 mainly due to increase in trade payables resulted from higher purchase and contract
liabilities resulted from more deposit received from customers in FYE 2021 for the new
contracts which were expected to be completed in following year.
For FPE 2022, our current ratio increased from 1.51 times in FYE 2021 to 1.60 times in FPE
2022 mainly due to an increase in fixed deposits with licensed banks and decrease in
borrowings as well as decrease in contract liabilities as deposit and its related advances
received from customers in FYE 2021 were subsequently recognised as revenue in FPE
2022.
Upon completion of our Listing and utilisation of proceeds, our current ratio will improve
further to 1.83 times.
12.8.4 Gearing ratio
Our gearing ratio throughout the financial years/period under review is as follows:
Audited
RM’000 RM’000 RM’000 RM’000 RM’000
Total borrowings and
indebtedness
Lease liabilities 4,163 4,965 5,381 4,148 3,432
Term loans 548 1,487 1,233 3,019 2,715
Liabilities directly associated - 1,862 1,822 - -
with non-current assets
classified as held for sale
Bankers' acceptances - 2,248 1,573 2,490 1,290
Trust receipts - - 504 1,644 242
Bank overdrafts - 78 - - -
4,711 10,640 10,513 11,301 7,679
Total equity 22,069 27,388 32,179 39,248 42,291

Gearing (times) 0.21 0.39 0.33 0.29 0.18
Our Group’s gearing ratio ranged between 0.18 time and 0.39 time for the financial years/
period under review. In FYE 2019, our gearing ratio increased to 0.39 time as compared to
0.21 time in FYE 2018 as there was a substantial increase in term loans and bankers’
acceptances compared to FYE 2018 which was due to financing purposes for the purchase
of raw materials in the form of bankers’ acceptances as well as purchase of right-of-use
assets and property, plant and equipment in the form of leases and term loans.
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Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
In FYE 2020, our gearing ratio decreased to 0.33 time due to increase in total equity as well
as reduction in term loans and bankers’ acceptances which was offset by the increase of
trust receipts.
In FYE 2021, our gearing ratio decreased to 0.29 time due to increase in total equity, the
absence of liabilities directly associated with non-current assets classified as held for sale
and reduction in lease liabilities which was offset by the increase of trust receipts, bankers’
acceptance and term loans.
In FPE 2022, our gearing ratio further decreased to 0.18 time due to increase in total equity
as a result of profit generated over the year and profit retained as well as the reduction in
borrowings due to schedule repayment.
Upon completion of our Listing and utilisation of proceeds, our pro forma gearing ratio will
reduce to 0.06 time.
12.9 SIGNIFICANT FACTORS AFFECTING OUR BUSINESS
Section 9 details a number of risk factors relating to our business and the industry in which
we operate. Some of these risk factors may have an impact on our Group’s revenue and
financial performance. The significant factors affecting our revenues and profits include but
not limited to the following:
(i) We are exposed to concentration risk of heavy reliance on our major

customer
Our major customer across FYE 2018 to 2021 and FPE 2022 is Rentak Segar, which
contributed to 16.77%, 48.13%, 40.13%, 39.65% and 49.46% of our revenue in the
respective FYEs and FPE. We were appointed as the Rentak Segar’s exclusive partner
for underground utility works. Thus, we are exposed to concentration risk on Rentak
Segar.
For further details, please refer to Risk Factors in Section 9.1.2 of this Prospectus.
(ii) External factors which may result in a delay in the completion of projects
and billings
Our revenue is recognised based on percentage of completion and billing is based on

actual work performed and certified by our customers. Thus, any postponement in
projects may influence our resource allocation for the execution of subsequent
projects and delay our revenue collection. Any form of delay in a project will therefore
affect our billings, revenue, operational cash flows and financial performance. We are
also required to pay our suppliers regardless of such delay if the purchase orders
have been fulfilled, thereby affecting our operational cash flows. The delay in project
can be due to various factors, including but not limited to, a shortage of manpower, a
shortage of materials from our suppliers, delays by adverse weather, outbreak of
diseases or pandemics, and economic turndown. We are liable to pay our contracting
parties for the liquidated damages stipulated in our contracts and our reputation,
financial performance and operational cash flows would be materially affected.
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No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
(iii) We are dependent on public and private investments on utilities

infrastructure in Malaysia
Our business is highly dependent on public and private investments on utilities

infrastructure. Any unfavourable changes in the government policies, economic
conditions or fiscal or monetary policies may materially affect our operations in
Malaysia.
(iv) We face competition from industry players
Our industry is competitive in terms of technology, range and quality of services and
timeliness of project delivery. Some of our competitors may be equipped with better
machineries, resources and technical expertise, allowing them to offer a more
comprehensive range of services or specialised services in comparison to us. Our
failure to remain competent may have a material adverse impact on our business
operations and financial performance.
12.10 IMPACT OF GOVERNMENT, ECONOMIC, FISCAL OR MONETARY POLICIES
Save for the impact of the MCO as disclosed in Section 7.12, there were no government,
economic, fiscal or monetary policies or factors which have materially affected our financial
performance during the financial years/period under review.
There is no assurance that our financial performance will not be adversely affected by the
impact of further changes in government, economic, fiscal or monetary policies or factors
moving forward. Risks relating to government, economic, fiscal or monetary policies or
factors which may adversely and materially affect our operations are set out in Section 9.
12.11 IMPACT OF INFLATION
A majority of our projects take between 6 months and 2 years to complete. Accordingly,
prices of key raw materials and consumables at the time of submission of tender bids or
signing of contracts may not reflect the prices that we will eventually pay during the
implementation of our projects. Certain of our contracts are firm and fixed-price contracts,
under which we commit to provide all of the resources required to complete a project at
fixed unit prices. As such, we are not able to pass on any increases in project cost.
Our operations are also dependent on the availability of subcontractors at acceptable fees.
Any unanticipated increases in the fees not taken into account at the time of submission of
tender bids or signing of contracts may also result in our profits being different from those
originally estimated and may result in us experiencing reduced profitability or losses on
projects.
During FYE 2018 to FYE 2021 and FPE 2022, our financial performance was not materially
affected by the impact of inflation. However, there is no assurance that our financial
performance will not be adversely affected by the impact of inflation moving forward.
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12.12 IMPACT OF FOREIGN EXCHANGE RATES, INTEREST RATES AND/OR COMMODITY

PRICES
12.12.1 Impact of foreign exchange rates
Despite all our revenue being derived locally for FYE 2018, 2019, 2020, 2021 and FPE 2022,
we are still exposed to minimal transactional currency exposure denominated in USD due to
foreign purchases of imported material. Our Group further holds foreign currencies in USD
which exposes us to currency translation risk. For the past four FYE 2018 to 2021 and FPE
2022, our losses or gain from the foreign exchange fluctuations are as follows:
Audited
RM RM RM RM RM
Unrealised (515) (478) 535 (243) (4)

(loss)/gain on
foreign
exchange
Unrealised loss or gain on foreign exchange represents the unrealised foreign currency
translation gains or losses measured using the Bank Negara’s exchange rate as of the
respective FYEs or FPE.
12.12.2 Impact of interest rates
Our exposure to changes in interest rate relates primarily to our borrowings from banks. We
do not hedge interest rate risk.
Interest coverage ratio measures the number of times a company can make its interest
payments with EBIT. The interest coverage ratio for the financial years/period under review
is as follows:
Audited
RM’000 RM’000 RM’000 RM’000 RM’000
EBIT 10,120 9,150 8,254 11,127 3,855
Finance cost 280 495 676 644 139
Interest coverage ratio 36.14 18.48 12.21 17.28 27.73
(times)(1)
Note:
(1) Computed based on EBIT over finance costs for the FYE 2018 to 2021 and FPE 2022.
Our interest coverage ratio is between 12.21 times and 36.14 times for the FYE 2018 to
2021 and FPE 2022 indicates that our Group has been able to generate sufficient profits
before interest and tax to meet our interest serving obligations.
A sensitivity analysis performed on our Group based on the outstanding floating rate of the
bank borrowings as at 31 October 2021 indicates that our PAT for FPE 2022 would increase
or decrease by approximately RM0.05 million, as a result of increase or decrease in interest
rates by 100 basis points on these borrowings.
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Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
Our Group's financial results for the FYE 2018 to 2021 and FPE 2022 were not materially
affected by fluctuations in interest rates. However, major increase in interest rates would
raise the cost of borrowings and our finance costs, which may have an adverse effect on the
performance of our Group.
12.12.3 Impact of commodity prices
Our direct materials mainly consist of raw materials and consumables such as purchase cost
of pipes, cables, cable joint, substation steel structure and clamps. These raw materials and
consumables are widely available in Malaysia and from a large base of suppliers.
We were not materially affected by fluctuations in commodity prices for FYE 2018 to FYE
2021 and FPE 2022 as it is our strategy to provide sufficient buffer in our budgeted project
cost which allows better planning for potential cost overruns that may arise due to
increased price of raw materials. The buffers in our budgeted project cost had been
sufficient to contain the price fluctuations in commodity prices such as copper (one of the
raw materials for the production of cables) for FYE 2018 to FYE 2021 and FPE 2022.
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12.13 ORDER BOOK
We generate our revenue based on a letter of award that will be issued to us (if applicable)
and the contract or purchase order awarded. Our order book as at LPD is as follows:
As at
31 October 2021 As at LPD
Project details RM’ 000 RM’ 000
Underground utilities engineering 128,208 135,397

Substation engineering 26,112 36,794
154,320 172,191
Our order book as at the LPD is expected to be realised over the following financial years:
(1)
FYE 2022 FYE 2023 FYE 2024 FYE 2025
Project details RM’ 000 RM’ 000 RM’ 000 RM’ 000
Underground utilities 32,107 65,733 26,604 10,953

engineering
Substation engineering 9,873 26,921 - -
41,980 92,654 26,604 10,953
Note:
(1) For the period from 10 March 2022 to 30 June 2022.
The above order book relates to the contract value of projects which are ongoing less
revenue recognised up to 31 October 2021 or LPD, as the case may be. This order book will
be recognised progressively over the next 1 to 4 financial years based on the expected
progress of each project.
None of our order book is awarded by related party. Our order book of RM172.19 million as
at LPD represents 2.29 times of our average revenue of RM75.16 million, calculated based
on our audited revenues from FYE 2018 to FYE 2021 which is an indication of the
sustainability of our revenue for the next 2 financial years. As at LPD, we have participated
in tenders for various underground utilities engineering and substation engineering projects.
These projects, if awarded to us, will further increase our order book.
The unrecognised portion of our contract value with Rentak Segar represents 40.16% of our
order book respectively as at LPD.
12.14 DIRECTORS’ DECLARATION ON OUR GROUP’S FINANCIAL PERFORMANCE
Our Board is of the opinion that:
(i) Our Group’s revenue will remain sustainable with an upward growth trend, in line
with our order book as set out in Section 12.13 and the positive outlook of the utilities
construction industry as set out in the IMR Report in Section 8;
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202001038774 (1395095-M)
(1395095-M)
(ii) Our liquidity will improve subsequent to the Public Issue given the additional funds to
be raised for our Group to carry out our future plans and business strategies as
stated in Section 7.20; and
(iii) Our financial resources will strengthen, taking into account the amount to be raised
from the Public Issue as well as internally generated funds. We may consider debt
funding for our business expansion should the need arises.
In addition to the above, our Board confirms that there are no known circumstances which
would result in a significant decline in our revenue and GP margins or know of any factors
that are likely to have a material impact on our liquidity, revenue or profitability.
12.15 TREND INFORMATION
Based on our track record for the FYE 2018 to 2021 and FPE 2022, including our segmental
analysis of revenue and profitability, the following trends may continue to affect our
business:
(i) During the FYE 2018 to 2021 and FPE 2022, an average 78.86% of our revenue was
derived from underground utilities engineering segment. We expect the underground
utilities engineering segment continue contributing significantly to our revenue in the
future;
(ii) During the FYE 2018 to 2021 and FPE 2022, 100.00% of our revenue was derived
locally. We expect this trend to continue in the future; and
(iii) During the FYE 2018 to 2021 and FPE 2022, the main component of our cost of sales
was subcontractors’ fees, which constituted average 45.31% of total cost of sales.
We expect this trend to continue.
As at LPD, our Board confirms that our operations have not been and are not expected to
be affected by any of the following:
(i) Known trends, demands, commitments, events or uncertainties that have had or that
we reasonably expect to have, a material favourable or unfavourable impact on our
Group’s financial performance, position and operations other than those discussed in
Section 7.12, 12.2, 12.9, 12.10, 12.11 and 12.12;
(ii) Material commitments for capital expenditure;
(iii) Unusual, infrequent events or transactions or any significant economic changes that
have materially affected the financial performance, position and operations of our
Group save as discussed in Sections 7.12, 12.2, 12.9, 12.10, 12.11 and 12.12;
(iv) Known trends, demands, commitments, events or uncertainties that have resulted in
a substantial increase in our Group’s revenue save for those that had been discussed
in Section 7.12, 12.2, 12.9, 12.10, 12.11 and 12.12; and
(v) Known trends, demands, commitments, events or uncertainties that are reasonably
likely to make our Group’s historical financial statements not necessarily indicative of
the future financial performance and position other than those discussed in Section
7.12, 12.2, 12.9, 12.10, 12.11 and 12.12.
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Registration No.:
No.: 202001038774
202001038774 (1395095-M)
(1395095-M)
Our Board is optimistic about the future prospects of our Group given the positive outlook of
the utilities construction industry in Malaysia as set out in the IMR report in Section 8, our
Group’s competitive strengths set out in Section 7.19 and our Group’s intention to
implement the future plans and business strategies as set out in Section 7.20.
12.16 SIGNIFICANT CHANGES
Save for the COVID-19 pandemic and as disclosed in this Prospectus, there is no significant
changes that have occurred which may have a material effect on the financial position and
results of our Group subsequent to the FPE 2022 up to the LPD. Please refer to Section 7.12
and 9.1.1 of this Prospectus for further details on the impact of the COVID-19 pandemic on
our business and financial performance.
12.17 DIVIDEND POLICY
Our Company does not have any formal dividend policy. As we are a holding company, our
Company’s income and therefore our ability to pay dividends is dependent upon the
dividends we receive from our subsidiaries, present or future. Save for compliance with the
solvency requirement under the Act, which is applicable to all Malaysian companies, and
consent from our financiers as set out in the respective facility agreements, there are no
legal, financial, or economic restrictions on the ability of our existing subsidiaries to transfer
funds in the form of cash dividends, loans or advances to us. Moving forward, the payment
of dividends or other distributions by our subsidiaries will depend on their distributable
profits, operating results, financial condition, capital expenditure plans, business expansion
plans and other factors that our Board deem relevant.
The declaration of interim dividends and the recommendation of final dividends are subject
to the discretion of our Board and any final dividends for the year are subject to
shareholders’ approval. Actual dividends proposed and declared may vary depending on the
financial performance and cash flows of our Group.
In respect of FYE 2018 to 2021 and FPE 2022, dividends declared by our subsidiaries were
as follows:
Audited
RM’000 RM’000 RM’000 RM’000 RM’000
Dividends declared and 500 650 1,120 1,060 -

paid
From 1 November 2021 up to LPD, we did not declare any dividend and our Board does not
intend to declare or pay any dividends prior to the Listing.
12.18 CAPITALISATION AND INDEBTEDNESS
The table below summarises our capitalisation and indebtedness:
(i) Based on the unaudited financial information as at 28 February 2022; and
(ii) After adjusting for the effects of IPO and utilisation of proceeds.
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202001038774 (1395095-M)
(1395095-M)
I II
As at 28
(1)
After After I and
February Public utilisation
2022 Issue of proceeds
RM’000 RM’000 RM’000
Capitalisation
Shareholders’ equity 51,304 68,472 66,570
Total capitalisation 51,304 68,472 66,570
Indebtedness
Current
Secured and guaranteed
Bankers' acceptances 1,707 1,707 1,707
Term loans 503 503 85
Lease liabilities (under hire purchase arrangement)(3) 1,349 1,349 -
Unsecured and unguaranteed

Lease liabilities (rentals)(4) 127 127 127
Non-current
Secured and guaranteed

Term loans 1,974 1,974 1,129
Lease liabilities (under hire purchase arrangement)(3) 1,383 1,383 -
Unsecured and unguaranteed

Lease liabilities (rentals)(4) 70 70 70
Total indebtedness 7,113 7,113 3,118
Gearing ratio(2)(times) 0.14 0.10 0.05
Notes:
(1) After adjusting for the Acquisitions.
(2) Calculated based on the total indebtedness divided by the total capitalisation.
(3) Lease liabilities (under hire purchase arrangements) represent our property, plant,
equipment under hire purchase arrangements which are guaranteed by our
Promoters and secured with the corresponding assets, amongst other, the motor
vehicles and machineries.
(4) Lease liabilities (rentals) represent the present value of the remaining rental
payments over the rental period for our rented properties as detailed in Section
6.11.2 (i), (ii), (iii), (iv) and (v) which are neither guaranteed nor secured with any
assets.
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13. ACCOUNTANTS’ REPORT
298
No.:: 202001038774 (1395095-M)
Registration No
13. ACCOUNTANTS’ REPORT (Cont’d)
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No.:: 202001038774 (1395095-M)
Registration No
300
Registration No
No.:: 202001038774 (1395095-M) Registration No : 202001038774 (1395095-M)
13. ACCOUNTANTS’ REPORT (Cont’d) 13. ACCOUNTANTS’ REPORT (Cont’d)
MN HOLDINGS BERHAD
COMBINED STATEMENTS OF FINANCIAL POSITION

MN HOLDINGS BERHAD
Audited
COMBINED STATEMENTS OF FINANCIAL POSITION Audited Audited Audited Unaudited Audited
30 June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021
Note RM
Audited RM
Audited RM
Audited RM
Audited RM
Unaudited RM
Audited
ASSETS 30 June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021
Note RM RM RM RM RM RM
NON-CURRENT ASSETS
ASSETS
Property, plant and equipment 4 710,183 1,868,538 1,793,803 2,141,260 2,487,497 2,408,324
NON-CURRENT ASSETS
Investment properties 5 671,633 656,833 642,033 627,233 637,100 622,300
Right-of-use assets
Property, plant and equipment 64 4,842,728
710,183 8,416,336
1,868,538 7,229,689
1,793,803 5,408,236
2,141,260 5,686,903
2,487,497 4,505,352
2,408,324
Deferred
Investment assets
taxproperties 165 -
671,633 -
656,833 -
642,033 1,711,630
627,233 939,453
637,100 1,988,106
622,300
Right-of-use assets 6 4,842,728 8,416,336 7,229,689 5,408,236 5,686,903 4,505,352
6,224,544 10,941,707 9,665,525 9,888,359 9,750,953 9,524,082
Deferred tax assets 16 - - - 1,711,630 939,453 1,988,106
CURRENT ASSETS 6,224,544 10,941,707 9,665,525 9,888,359 9,750,953 9,524,082
Trade receivables 7 7,924,858 13,279,943 8,623,093 29,767,327 13,164,260 26,986,455

CURRENT
Other ASSETS
receivables, deposits and prepayments 8 6,791,551 6,514,049 8,050,281 8,602,154 8,365,872 8,710,615
Contract assets
Trade receivables 97 22,315,748
7,924,858 27,881,908
13,279,943 37,566,743
8,623,093 49,062,929
29,767,327 39,339,682
13,164,260 49,229,762
26,986,455
Amount
Other owing by directors
receivables, deposits and prepayments 10
8 150,000
6,791,551 -
6,514,049 -
8,050,281 -
8,602,154 -
8,365,872 -
8,710,615
Current
Contracttax assets
assets 9 -
22,315,748 -
27,881,908 -
37,566,743 201,614
49,062,929 -
39,339,682 -
49,229,762
Fixed
Amountdeposits
owing by licensed banks
withdirectors 11
10 903,505
150,000 1,712,320
- 2,259,878
- 2,904,828
- 2,513,972
- 4,062,339
-
Current
Cash andtaxbank balances
assets 957,189
- 3,202,716
- 3,774,415
- 8,352,980
201,614 3,585,906
- 8,672,731
-
Fixed deposits with licensed banks 11 903,505 1,712,320 2,259,878 2,904,828 2,513,972 4,062,339
Cash and bank balances 39,042,851
957,189 52,590,936
3,202,716 60,274,410
3,774,415 98,891,832
8,352,980 66,969,692
3,585,906 97,661,902
8,672,731
Non-current assets classified as held for sales 12 - 2,199,584 2,199,584 - 2,199,584 -
39,042,851 52,590,936 60,274,410 98,891,832 66,969,692 97,661,902
Non-current assets classified as held for sales 12 39,042,851
- 54,790,520
2,199,584 62,473,994
2,199,584 98,891,832
- 69,169,276
2,199,584 97,661,902
-
TOTAL ASSETS 45,267,395 65,732,227 72,139,519 108,780,191 78,920,229 107,185,984
39,042,851 54,790,520 62,473,994 98,891,832 69,169,276 97,661,902
TOTAL ASSETS 45,267,395 65,732,227 72,139,519 108,780,191 78,920,229 107,185,984
Page 4
301 Page 4
Registration No
MN HOLDINGS BERHAD
MN HOLDINGS BERHAD
COMBINED STATEMENTS OF FINANCIAL POSITION (CONT’D)
Audited Audited Audited Audited Unaudited Audited
June 2018
30 Audited June 2019
30 Audited 31 October 2020
Unaudited 31 October
Audited2021
Note 30 June
RM 2018 30 June
RM 2019 30 June
RM 2020 30 June
RM 2021 31 October
RM 2020 31 October
RM 2021
EQUITY
EQUITY
Share capital 13 800,000 1,000,000 1,250,000 1,750,002 1,250,000 1,750,002
Retained profits
Share capital 13 21,269,240
800,000 26,387,619
1,000,000 30,929,091
1,250,000 37,497,770
1,750,002 32,490,029
1,250,000 40,541,766
1,750,002
TOTAL profits
RetainedEQUITY 21,269,240
22,069,240 26,387,619
27,387,619 30,929,091
32,179,091 37,497,770
39,247,772 32,490,029
33,740,029 40,541,766
42,291,768
TOTAL EQUITY 22,069,240 27,387,619 32,179,091 39,247,772 33,740,029 42,291,768
NON-CURRENT LIABILITIES
NON-CURRENT
Lease liabilities LIABILITIES 14 2,402,290 2,688,441 2,569,100 1,892,766 2,009,164 1,641,379
Term
Leaseloans
liabilities 15
14 522,493
2,402,290 984,132
2,688,441 804,735
2,569,100 2,256,401
1,892,766 2,115,592
2,009,164 2,152,588
1,641,379
Deferred tax liabilities
Term loans 16
15 2,985,693
522,493 993,700
984,132 297,167
804,735 -
2,256,401 -
2,115,592 -
2,152,588
Deferred tax liabilities 16 2,985,693
5,910,476 993,700
4,666,273 297,167
3,671,002 -
4,149,167 -
4,124,756 -
3,793,967
5,910,476 4,666,273 3,671,002 4,149,167 4,124,756 3,793,967
Page 5
Page 5
302
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
COMBINED STATEMENTS OF FINANCIAL POSITION

Audited (CONT’D)Audited Audited Audited Unaudited Audited
Note RM
Audited RM
Audited RM
Audited RM
Audited RM
Unaudited RM
Audited
CURRENT LIABILITIES Note RM RM RM RM RM RM
Trade payables 17 10,859,400 19,104,241 23,107,062 42,227,603 26,285,445 43,165,541
CURRENT
Other LIABILITIES
payables and accruals 18 1,190,344 4,335,817 1,432,754 1,345,348 978,004 1,391,924
Contract liabilities
Trade payables 9
17 1,268,629
10,859,400 1,126,707
19,104,241 2,749,859
23,107,062 12,379,594
42,227,603 3,558,471
26,285,445 10,471,953
43,165,541
Lease
Other payables
liabilities and accruals 14
18 1,760,887
1,190,344 2,276,989
4,335,817 2,812,439
1,432,754 2,254,804
1,345,348 2,515,571
978,004 1,791,139
1,391,924
Term loans
Contract liabilities 159 25,918
1,268,629 502,630
1,126,707 427,546
2,749,859 763,283
12,379,594 882,168
3,558,471 562,482
10,471,953
Bankers' acceptances
Lease liabilities 19
14 -
1,760,887 2,248,000
2,276,989 1,573,000
2,812,439 2,490,000
2,254,804 2,601,000
2,515,571 1,290,000
1,791,139
Trust receipts
Term loans 20
15 -
25,918 -
502,630 504,000
427,546 1,644,100
763,283 -
882,168 241,846
562,482
Bank overdrafts
Bankers' acceptances 21
19 -- 77,680
2,248,000 -
1,573,000 -
2,490,000 -
2,601,000 -
1,290,000
Current
Trust tax liabilities
receipts 20 2,182,501
- 2,143,707
- 1,860,268
504,000 2,278,520
1,644,100 2,420,401
- 2,185,364
241,846
Bank overdrafts 21 -
17,287,679 77,680
31,815,771 -
34,466,928 -
65,383,252 -
39,241,060 -
61,100,249
Current tax liabilities 2,182,501 2,143,707 1,860,268 2,278,520 2,420,401 2,185,364
Liabilities directly associated with non-
current assets classified as held for sale 12 -
17,287,679 1,862,564
31,815,771 1,822,498
34,466,928 -
65,383,252 1,814,384
39,241,060 -
61,100,249
Liabilities directly associated with non- 17,287,679 33,678,335 36,289,426 65,383,252 41,055,444 61,100,249
current assets classified as held for sale 12 - 1,862,564 1,822,498 - 1,814,384 -
TOTAL LIABILITIES 23,198,155 38,344,608 39,960,428 69,532,419 45,180,200 64,894,216
17,287,679 33,678,335 36,289,426 65,383,252 41,055,444 61,100,249
TOTAL EQUITY AND LIABILITIES 45,267,395 65,732,227 72,139,519 108,780,191 78,920,229 107,185,984
TOTAL LIABILITIES 23,198,155 38,344,608 39,960,428 69,532,419 45,180,200 64,894,216
TOTAL EQUITY AND LIABILITIES 45,267,395 65,732,227 72,139,519 108,780,191 78,920,229 107,185,984
Page 6
303 Page 6
Registration No
MN HOLDINGS BERHAD
MN HOLDINGS BERHAD
COMBINED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
COMBINED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Audited
1.7.2017 Audited
1.7.2018 Audited
1.7.2019 Audited
1.7.2020 Unaudited
1.7.2020 Audited
1.7.2021
to
1.7.2017 to
1.7.2018 to
1.7.2019 to
1.7.2020 to
1.7.2020 to
1.7.2021
30.6.2018
to 30.6.2019
to 30.6.2020
to 30.6.2021
to 31.10.2020
to 31.10.2021
to
Note 30.6.2018
RM 30.6.2019
RM 30.6.2020
RM 30.6.2021
RM 31.10.2020
RM 31.10.2021
RM
REVENUE 22 51,753,638 65,676,202 68,008,199 115,199,509 29,971,937 33,981,379
COST OF SALES
REVENUE 22 (36,118,601)
51,753,638 (49,096,189)
65,676,202 (50,690,708)
68,008,199 (90,139,118)
115,199,509 (23,625,452)
29,971,937 (25,846,535)
33,981,379
COST OF SALES (36,118,601) (49,096,189) (50,690,708) (90,139,118) (23,625,452) (25,846,535)
GROSS PROFIT 15,635,037 16,580,013 17,317,491 25,060,391 6,346,485 8,134,844
GROSS PROFIT
OTHER INCOME 15,635,037
452,798 16,580,013
81,605 17,317,491
804,026 25,060,391
857,737 6,346,485
293,792 8,134,844
226,130
OTHER INCOME 452,798 81,605 804,026 857,737 293,792 226,130
16,087,835 16,661,618 18,121,517 25,918,128 6,640,277 8,360,974
16,087,835 16,661,618 18,121,517 25,918,128 6,640,277 8,360,974
ADMINISTRATIVE EXPENSES (3,472,309) (4,688,288) (5,331,184) (7,894,909) (2,127,117) (2,959,313)
ADMINISTRATIVE
OTHER EXPENSESEXPENSES (1,604,658)
(3,472,309) (2,173,762)
(4,688,288) (3,015,813)
(5,331,184) (3,292,508)
(7,894,909) (1,023,732)
(2,127,117) (1,118,482)
(2,959,313)
NET IMPAIRMENT
OTHER EXPENSESLOSSES ON FINANCIAL ASSETS (1,604,658) (2,173,762) (3,015,813) (3,292,508) (1,023,732) (1,118,482)
NET
ANDIMPAIRMENT LOSSES ON FINANCIAL ASSETS
CONTRACT ASSETS 23 (785,798) (591,970) (1,440,434) (3,549,175) (1,212,848) (414,653)
AND CONTRACT ASSETS 23 (785,798) (591,970) (1,440,434) (3,549,175) (1,212,848) (414,653)
(5,862,765) (7,454,020) (9,787,431) (14,736,592) (4,363,697) (4,492,448)
(5,862,765) (7,454,020) (9,787,431) (14,736,592) (4,363,697) (4,492,448)
PROFIT FROM OPERATION 10,225,070 9,207,598 8,334,086 11,181,536 2,276,580 3,868,526
PROFIT COSTS
FINANCEFROM OPERATION (279,536)
10,225,070 (494,896)
9,207,598 (676,147)
8,334,086 (644,238)
11,181,536 (163,970)
2,276,580 (139,006)
3,868,526
FINANCE COSTS (279,536) (494,896) (676,147) (644,238) (163,970) (139,006)
PROFIT BEFORE TAXATION 24 9,945,534 8,712,702 7,657,939 10,537,298 2,112,610 3,729,520
PROFIT BEFORE TAXATION 24 9,945,534 8,712,702 7,657,939 10,537,298 2,112,610 3,729,520
INCOME TAX EXPENSE 25 (2,578,405) (2,345,962) (1,996,467) (2,408,619) (551,672) (685,524)
INCOME TAX EXPENSE 25 (2,578,405) (2,345,962) (1,996,467) (2,408,619) (551,672) (685,524)
PROFIT AFTER TAXATION 7,367,129 6,366,740 5,661,472 8,128,679 1,560,938 3,043,996
PROFIT AFTER TAXATION 7,367,129 6,366,740 5,661,472 8,128,679 1,560,938 3,043,996
OTHER COMPREHENSIVE INCOME - - - - - -
OTHER COMPREHENSIVE INCOME - - - - - -
TOTAL OTHER COMPREHENSIVE INCOME
FOR THE
TOTAL FINANCIAL
OTHER YEAR/PERIOD
COMPREHENSIVE INCOME 7,367,129 6,366,740 5,661,472 8,128,679 1,560,938 3,043,996
FOR THE FINANCIAL YEAR/PERIOD 7,367,129 6,366,740 5,661,472 8,128,679 1,560,938 3,043,996
Page 7
Page 7
304
Registration No
MN HOLDINGS BERHAD
MN HOLDINGS
COMBINED STATEMENTS
BERHAD OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONT’D)
COMBINED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONT’D)

1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
to to to to to to
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
to to to to to to
RM RM RM RM RM RM
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
RM RM RM RM RM RM
PROFIT AFTER TAXATION
ATTRIBUTABLE TO:-
PROFIT AFTER TAXATION
Owners of the Company 7,367,129 6,366,740 5,661,472 8,128,679 1,560,938 3,043,996
ATTRIBUTABLE TO:-
ATTRIBUTABLE TO:-
ATTRIBUTABLE TO:-
EARNINGS PER SHARE (RM)
- Basic 26 9.21 6.37 4.53 4.64 1.25 1.74
EARNINGS PER SHARE (RM)
Diluted
-- Basic 26
26 9.21
9.21 6.37
6.37 4.53
4.53 4.64
4.64 1.25
1.25 1.74
1.74
- Diluted 26 9.21 6.37 4.53 4.64 1.25 1.74
Page 8
305 Page 8
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD
MN HOLDINGS
COMBINED BERHAD OF CHANGES IN EQUITY
STATEMENTS
COMBINED STATEMENTS OF CHANGES IN EQUITY Share Retained Total
Capital Profits Equity
Audited Note Share
RM Retained
RM Total
RM
Audited Note RM RM RM
Balance at 1 July 2017 650,000 14,402,111 15,052,111
Balance
Profit at taxation/Total
after 1 July 2017 comprehensive 650,000 14,402,111 15,052,111
income for the financial year - 7,367,129 7,367,129
Profit after taxation/Total comprehensive
income for the
Contribution financial
by and year
distribution - 7,367,129 7,367,129
to owners of the Company:-
Contribution by and distribution
-toIssuance
owners ofof the
shares
Company:- 13 150,000 - 150,000
- Dividends 27 - (500,000) (500,000)
- Issuance of shares 13 150,000 - 150,000
- Dividends
Total transactions with owners 27 -
150,000 (500,000) (500,000)
(350,000)
Total transactions
Balance at 30 Junewith owners
2018/1 July 2018 150,000
800,000 (500,000)
21,269,240 (350,000)
22,069,240
Balance
Initial at 30 June
application 2018/19,July
of MFRS net2018
of tax 800,000
- 21,269,240
(598,361) 22,069,240
(598,361)
Initial application
Balance at 30 Juneof MFRS
2018/19,July
net2018,
of taxrestated -
800,000 (598,361)
20,670,879 (598,361)
21,470,879
Balance
Profit at taxation/Total
after 30 June 2018/1 July 2018, restated
comprehensive 800,000 20,670,879 21,470,879
income for the
by and year
distribution - 6,366,740 6,366,740
-toIssuance of the
owners of shares
Company:- 13 200,000 - 200,000
- Dividends 27 - (650,000) (650,000)
- Dividends 27 -
200,000 (650,000)
(650,000) (650,000)
(450,000)
Balance at 30 June 2019/1 July 2019 200,000

1,000,000 (650,000)
26,387,619 (450,000)
27,387,619
Balance at taxation/Total
Profit after 30 June 2019/1 July 2019
comprehensive 1,000,000 26,387,619 27,387,619
income for the
by and year
distribution - 5,661,472 5,661,472
-toIssuance of the
owners of shares
Company:- 13 250,000 - 250,000
- Dividends 27 - (1,120,000) (1,120,000)
- Dividends 27 -
250,000 (1,120,000)
(1,120,000) (1,120,000)
(870,000)
Balance at 30 June 2020 250,000

1,250,000 (1,120,000)
30,929,091 (870,000)
32,179,091
Balance at 30 June 2020 1,250,000 30,929,091 32,179,091
Page 9
Page 9
306
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD
MN HOLDINGS
COMBINED BERHAD OF CHANGES IN EQUITY (CONT’D)
STATEMENTS
COMBINED STATEMENTS OF CHANGES IN EQUITY (CONT’D)
Share Retained Total
Audited Note Share
RM Retained
RM Total
RM
Audited at 1 July 2020
Balance Note RM
1,250,000 RM
30,929,091 RM
32,179,091
Balance at 1 July 2020 1,250,000 30,929,091 32,179,091

income for the
by and year
distribution - 8,128,679 8,128,679
-toIssuance of the
owners of shares
Company:- 13 500,002 (500,000) 2
- Dividends 27 - (1,060,000) (1,060,000)
- Issuance of shares 13 500,002 (500,000) 2
- Dividends 27 -
500,002 (1,060,000)
(1,560,000) (1,060,000)
(1,059,998)
Balance at 30 June 2021/1 July 2021 500,002

1,750,002 (1,560,000)
37,497,770 (1,059,998)
39,247,772
Profit after 30 June 2021/1 July 2021
comprehensive 1,750,002 37,497,770 39,247,772
Balance
income at for31
theOctober 2021
financial year 1,750,002
- 40,541,766
3,043,996 42,291,768
3,043,996
Balance at 31 October 2021 1,750,002 40,541,766 42,291,768

Share Retained Total
Unaudited Share
RM Retained
RM Total
RM
Unaudited
Balance at 1 July 2020 RM
1,250,000 RM
30,929,091 RM
32,179,091
Profit after 1 July 2020 comprehensive 1,250,000 30,929,091 32,179,091
Balance
income at for31
theOctober 2020
financial year 1,250,000
- 32,490,029
1,560,938 33,740,029
1,560,938
Balance at 31 October 2020 1,250,000 32,490,029 33,740,029
Page 10
Page 10
307
Registration No
MN HOLDINGS BERHAD
MN HOLDINGS
COMBINED STATEMENTS
BERHAD OF CASH FLOWS
COMBINED STATEMENTS OF CASH FLOWS Audited Audited Audited Audited Unaudited Audited
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
Audited
to Audited
to Audited
to Audited
to Unaudited
to Audited
to
1.7.2017
30.6.2018 1.7.2018
30.6.2019 1.7.2019
30.6.2020 1.7.2020
30.6.2021 1.7.2020
31.10.2020 1.7.2021
31.10.2021
Note to
RM to
RM to
RM to
RM to
RM to
RM
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
CASH FLOWS FROM/(FOR) OPERATING ACTIVITIES Note RM RM RM RM RM RM
Profit before taxation 9,945,534 8,712,702 7,657,939 10,537,298 2,112,610 3,729,520
CASH FLOWS FROM/(FOR) OPERATING ACTIVITIES
Profit before taxation
Adjustments for: 9,945,534 8,712,702 7,657,939 10,537,298 2,112,610 3,729,520
Depreciation of investment properties 14,800 14,800 14,800 14,800 4,933 4,933
Adjustments
Depreciation for:
of property, plant and equipment 226,039 465,424 570,577 1,385,754 386,967 527,977
Depreciation of investment
right-of-use properties
assets 14,800
1,363,304 14,800
1,693,061 14,800
2,430,433 14,800
1,780,281 4,933
629,164 4,933
584,568
Depreciation
Deposit written property, plant and equipment
of off 226,039
- 465,424
- 570,577
- 1,385,754
109,000 386,967
- 527,977
-
Depreciation
Impairment loss: of right-of-use assets 1,363,304 1,693,061 2,430,433 1,780,281 629,164 584,568
-Deposit written off
trade receivables -
785,798 -
627,693 -
1,440,434 109,000
2,200,171 -
550,271 -
730,730
-Impairment loss:
contract assets - - - 1,349,004 729,851 31,000
- trade receivables
Interest expense 785,798
32,055 627,693
189,029 1,440,434
303,660 2,200,171
357,571 550,271
74,879 730,730
73,519
contract
-Interest expense
assets on lease liabilities -
247,481 -
305,867 -
372,487 1,349,004
286,667 729,851
89,091 31,000
65,487
Interest expense
Unrealised loss/(gain) on foreign exchange 32,055
515 189,029
478 303,660
(535) 357,571
243 74,879
238 73,519
4
Interest
Property,expense
plant and lease liabilities
onequipment written off 247,481
- 305,867
- 372,487
- 286,667
2,430 89,091
2,430 65,487
-
Unrealised loss/(gain) on foreign exchange
Interest income 515
(104,808) 478
(57,805) (535)
(80,100) 243
(54,779) 238
(4,295) 4
(13,920)
Property, plant
(Gain)/loss and equipment
on disposal written
of property, plant
off and equipment -
(102,253) - -
(40,853) 2,430
(30,999) 2,430
- -
Interest
Gain on income
disposal of right-of-use assets (104,808)
- (57,805)
- (80,100)
(41,000) (54,779)
(205,716) (4,295)
- (13,920)
-
(Gain)/loss
Reversal of on disposal of
impairment property, plant and equipment
loss (102,253)
- -
(35,723) (40,853)
- (30,999)
- -
(67,274) -
(347,077)
Gain on disposal of right-of-use assets - - (41,000) (205,716) - -
Operating
Reversal ofprofit before working
impairment loss capital changes 12,408,465
- 11,915,526
(35,723) 12,627,842
- 17,731,725
- 4,508,865
(67,274) 5,386,741
(347,077)
Increase in contract assets (5,159,470) (5,708,082) (8,061,683) (3,215,455) (922,493) (1,779,177)
Operating profit before
(Increase)/Decrease in working
trade andcapital
otherchanges
receivables 12,408,465
(2,287,263) 11,915,526
(6,456,869) 12,627,842
1,680,184 17,731,725
(24,006,663) 4,508,865
(6,211,219) 5,386,741
1,962,461
Increase in contract assets
(Decrease)/Increase in trade and other payables (5,159,470)
(336,487) (5,708,082)
11,390,312 (8,061,683)
3,161,801 (3,215,455)
19,034,519 (922,493)
2,823,411 (1,779,177)
984,513
(Increase)/Decrease in trade and other receivables (2,287,263) (6,456,869) 1,680,184 (24,006,663) (6,211,219) 1,962,461
CASH FROM OPERATIONS
(Decrease)/Increase in trade and other payables 4,625,245
(336,487) 11,140,887
11,390,312 9,408,144
3,161,801 9,544,126
19,034,519 198,564
2,823,411 6,554,538
984,513
Income tax paid (1,205,903) (4,210,188) (2,976,439) (4,200,777) (1,228,158) (853,541)
CASH FROM
Income OPERATIONS
tax refund 4,625,245
48,413 11,140,887
22,394 9,408,144
- 9,544,126
- 198,564
- 6,554,538
-
Income tax paid (1,205,903) (4,210,188) (2,976,439) (4,200,777) (1,228,158) (853,541)
NET
Income CASH FROM/(FOR) OPERATING ACTIVITIES
tax refund 3,467,755
48,413 6,953,093
22,394 6,431,705
- 5,343,349
- (1,029,594)
- 5,700,997
-
NET CASH FROM/(FOR) OPERATING ACTIVITIES 3,467,755 6,953,093 6,431,705 5,343,349 (1,029,594) 5,700,997
Page 11
308 Page 11
Registration No
MN ACCOUNTANTS’
13. HOLDINGS BERHAD REPORT (Cont’d) 13. ACCOUNTANTS’ REPORT (Cont’d)
COMBINED STATEMENTS OF CASH FLOWS (CONT’D)

MN HOLDINGS BERHAD Audited Audited Audited Audited Unaudited Audited
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
COMBINED STATEMENTS OF CASH FLOWS (CONT’D) to to to to to to
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
Note RM
Audited RM
Audited RM
Audited RM
Audited RM
Unaudited RM
Audited
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
CASH FLOWS (FOR)/FROM INVESTING ACTIVITIES to to to to to to
Additions to right-of-use assets 28(a) 30.6.20187,100 (4,524,675)
30.6.2019 (182,400)
30.6.2020 161,726
30.6.2021 31.10.2020- (66,300)
31.10.2021
Interest income received Note RM104,808 RM 57,805 RM 80,100 RM54,779 RM 4,295 RM13,920
Placement of fixed deposits with licensed banks (311,515) (1,059,768) (777,558) (644,950) (254,094) (157,511)
Purchase of property, plant and equipment 28(a) (313,548) (1,490,627) (496,989) (249,221) (169,469) (260,425)
CASH FLOWS (FOR)/FROM INVESTING ACTIVITIES
Proceeds from disposal of
Additions to right-of-use assets 28(a) 7,100 (4,524,675) (182,400) 161,726 - (66,300)
property, plant and equipment 120,755 - 42,003 31,000 - -
Interest income received 104,808 57,805 80,100 54,779 4,295 13,920
Placement of fixed deposits with licensed banks (311,515) (1,059,768) (777,558) (644,950) (254,094) (157,511)
right-of-use assets - - 245,000 2,405,300 - -
Purchase of property, plant and equipment 28(a) (313,548) (1,490,627) (496,989) (249,221) (169,469) (260,425)
Proceeds
NET CASH from
(FOR)/FROM
disposal of INVESTING ACTIVITIES (392,400) (7,017,265) (1,089,844) 1,758,634 (419,268) (470,316)
property, plant and equipment 120,755 - 42,003 31,000 - -
CASH FLOWS
right-of-use (FOR)/FROM FINANCING ACTIVITIES
assets - - 245,000 2,405,300 - -
(Advances to)/Repayment from directors (150,000) 150,000 - - - -
NET
Dividends (FOR)/FROM INVESTING ACTIVITIES
CASHpaid 27 (392,400)
(500,000) (7,017,265)
(650,000) (1,089,844)
(1,120,000) 1,758,634
(1,060,000) (419,268)
- (470,316)
-
Interest paid (279,536) (494,896) (676,147) (644,238) (163,970) (139,006)
Net repayment of lease liabilities 28(b) (1,756,983) (2,272,477) (2,911,320) (2,840,944) (856,804) (865,052)
CASH FLOWS (FOR)/FROM FINANCING ACTIVITIES
Drawdown of term loans 28(b) 12,988 2,899,463 126,690 2,299,990 1,799,990 -
(Advances to)/Repayment from directors (150,000) 150,000 - - - -
Repayment of term loans 28(b) (22,614) (98,548) (421,237) (2,335,085) (42,625) (304,614)
Dividends paid 27 (500,000) (650,000) (1,120,000) (1,060,000) - -
Drawdown of bankers' acceptances - 5,278,000 6,758,000 8,579,000 2,888,000 1,290,000
Interest paid (279,536) (494,896) (676,147) (644,238) (163,970) (139,006)
Repayment of bankers' acceptances - (3,030,000) (7,433,000) (7,662,000) (1,860,000) (2,490,000)
Net repayment of lease liabilities 28(b) (1,756,983) (2,272,477) (2,911,320) (2,840,944) (856,804) (865,052)
Drawndown of trust receipts - - 1,694,754 2,453,643 620,000 -
Drawdown of term loans 28(b) 12,988 2,899,463 126,690 2,299,990 1,799,990 -
Repayment of trust receipts - - (1,190,754) (1,313,543) (1,124,000) (1,402,254)
Repayment of term loans 28(b) (22,614) (98,548) (421,237) (2,335,085) (42,625) (304,614)
Proceeds from issuance of ordinary shares 150,000 200,000 250,000 2 - -
Drawdown of bankers' acceptances - 5,278,000 6,758,000 8,579,000 2,888,000 1,290,000
Repayment
NET of bankers' acceptances
CASH (FOR)/FROM FINANCING ACTIVITIES -
(2,546,145) (3,030,000)
1,981,542 (7,433,000)
(4,923,014) (7,662,000)
(2,523,175) (1,860,000)
1,260,591 (2,490,000)
(3,910,926)
Drawndown of trust receipts - - 1,694,754 2,453,643 620,000 -
Repayment of trust receipts - - (1,190,754) (1,313,543) (1,124,000) (1,402,254)
Proceeds from issuance of ordinary shares 150,000 200,000 250,000 2 - -
NET CASH (FOR)/FROM FINANCING ACTIVITIES (2,546,145) 1,981,542 (4,923,014) (2,523,175) 1,260,591 (3,910,926)
Page 12
309
Page 12
Registration No

MN HOLDINGS BERHAD
COMBINED STATEMENTS OF CASH FLOWS (CONT’D)

MN HOLDINGS BERHAD Audited Audited Audited Audited Unaudited Audited
COMBINED STATEMENTS OF CASH FLOWS (CONT’D) 1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
to to to to to to
30.6.2018
Audited 30.6.2019
Audited 30.6.2020
Audited 30.6.2021
Audited 31.10.2020
Unaudited 31.10.2021
Audited
Note RM
1.7.2017 RM
1.7.2018 RM
1.7.2019 RM
1.7.2020 RM
1.7.2020 RM
1.7.2021
to to to to to to
NET INCREASE/(DECREASE) IN 30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
CASH AND CASH EQUIVALENTS Note RM529,210 1,917,370
RM RM418,847 4,578,808
RM (188,271)
RM 1,319,755
RM
EFFECTS
NET OF FOREIGN EXCHANGE
INCREASE/(DECREASE) IN
TRANSLATION
CASH AND CASH EQUIVALENTS (515)
529,210 (476)
1,917,370 532
418,847 (243)
4,578,808 (238)
(188,271) (4)
1,319,755
CASH
EFFECTS CASH
ANDOF EQUIVALENTS
FOREIGN EXCHANGEAT
BEGINNING OF
TRANSLATION THE FINANCIAL YEAR 909,447
(515) 1,438,142
(476) 3,355,036
532 3,774,415
(243) 3,774,415
(238) 8,352,980
(4)
CASH AND CASH EQUIVALENTS AT
CASH AND
END OF CASH
THE EQUIVALENTS
FINANCIAL AT
YEAR/PERIOD 28(c) 1,438,142 3,355,036 3,774,415 8,352,980 3,585,906 9,672,731
BEGINNING OF THE FINANCIAL YEAR 909,447 1,438,142 3,355,036 3,774,415 3,774,415 8,352,980
CASH AND CASH EQUIVALENTS AT

END OF THE FINANCIAL YEAR/PERIOD 28(c) 1,438,142 3,355,036 3,774,415 8,352,980 3,585,906 9,672,731
Page 13
310
Page 13
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD
NOTES TO THE COMBINED FINANCIAL STATEMENTS

MN HOLDINGS BERHAD
1. GENERAL INFORMATION
NOTES TO THE COMBINED FINANCIAL STATEMENTS
MN Holdings Berhad (“MNHB”) was incorporated in Malaysia under the Companies Act 2016 on
1. GENERAL
26 November INFORMATION
2020, as a public limited company and is principally engaged in investment
holding. MNHB is embarking on the listing of and quotation of its enlarged share capital on the
ACEHoldings
MN Market ofBerhad
Bursa (“MNHB”)
Malaysia Securities Berhad (“Bursa
was incorporated Securities”).
in Malaysia under the Companies Act 2016 on
26 November 2020, as a public limited company and is principally engaged in investment
MNHB
holding.was
MNHBincorporated with a on
is embarking total
the paid-up
listingshare
of andcapital of RM2
quotation of comprising 2 ordinary
its enlarged shares.
share capital on the
ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).
MNHB was incorporated for the purpose of acquiring the existing operating entities pursuant to the
restructuring
MNHB exercise as with
was incorporated disclosed
a totalinpaid-up
Note 1.1 to the
share combined
capital financial
of RM2 statements.
comprising 2 ordinary shares.
The
MNHB information of the entities
was incorporated for thewithin the combined
purpose of acquiringfinancial statements
the existing is as
operating follows:
entities pursuant to the
restructuring exercise as disclosed in Note 1.1 to the combined financial statements.
(a) Mutu Nusantara Sdn. Bhd. (“MNSB”), a wholly-owned subsidiary, was incorporated on 12
April 2007
The information in Malaysia,
of the as athe
entities within private limited
combined company
financial and is principally
statements engaged in the
is as follows:
provision of underground utilities engineering services and solutions.
(a) Mutu Nusantara Sdn. Bhd. (“MNSB”), a wholly-owned subsidiary, was incorporated on 12
(b) MN
April Power
2007 in Transmission
Malaysia, as aSdn. Bhd.
private (“MPTSB”),
limited companyaand wholly-owned
is principallysubsidiary,
engaged in was
the
incorporated on 3 May 2012
provision of underground in Malaysia,
utilities as a
engineering private and
services limited company and is principally
solutions.
engaged in the provision of substation engineering services and solutions.
(b) MN Power Transmission Sdn. Bhd. (“MPTSB”), a wholly-owned subsidiary, was
(c) The registered
incorporated onoffice
3 Mayand2012principal place of
in Malaysia, asbusiness
a private of MNHB,
limited MNSB and
company and isMPTSB are
principally
as follows:
engaged in the provision of substation engineering services and solutions.
(c) Registered officeoffice and principal

The registered : placeLevel 5, BlockofB,MNHB,
of business DataranMNSB
PHB and MPTSB are
as follows: Saujana Resort, Section U2
40150 Shah Alam
Registered office : Selangor DarulB,
Level 5, Block Ehsan.
Dataran PHB
Saujana Resort, Section U2
Principal Place of business : F-07-01,
40150 Garden
Shah AlamShoppee One City
Jalan USJDarul
Selangor 25/1BEhsan.
47650 Subang Jaya
Principal Place of business : Selangor Darul Ehsan.
F-07-01, Garden Shoppee One City
Jalan USJ 25/1B
Notes:- 47650 Subang Jaya
MN Holdings Berhad - MNHB Darul Ehsan.
Selangor
Mutu Nusantara Sdn. Bhd. - MNSB
MN Power Transmission Sdn. Bhd.
Notes:- - MPTSB
MN Holdings Berhad - MNHB
(Collectively
Mutu defined
Nusantara Sdn.as “the Group”)
Bhd. - MNSB
MN Power Transmission Sdn. Bhd. - MPTSB
(Collectively defined as “the Group”)
Page 14
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311
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD
NOTES TO THE COMBINED FINANCIAL STATEMENTS (CONT’D)

MN HOLDINGS BERHAD
1. GENERAL INFORMATION (CONT’D)
1.1 RESTRUCTURING EXERCISE
The Company entered into two conditional Share Sales and Purchase Agreements on 10
1.1 March 2021 to acquire
RESTRUCTURING the equity interests in the following companies:-
EXERCISE
(a)
The Acquisition of the into
Company entered entire
twoequity interest
conditional in MNSB
Share for aPurchase
Sales and purchaseAgreements
consideration of
on 10
March 2021 to acquire the
RM25,969,999.80, equity
to be interests
satisfied by in
thetheissuance
followingofcompanies:-
259,699,998 ordinary shares in
MNHB at an issue price of RM0.10 per Share.
(a) Acquisition of the entire equity interest in MNSB for a purchase consideration of
(b) Acquisition of the entire
RM25,969,999.80, to beequity interest
satisfied by in
theMPTSB
issuancefor a
ofconsideration
259,699,998 of RM6,730,000,
ordinary shares to
in
be satisfied
MNHB at anby the price
issue issuance of 67,300,000
of RM0.10 per Share.ordinary shares in MPTSB at an issue price
of RM0.10 per Share.
(b) Acquisition of the entire equity interest in MPTSB for a consideration of RM6,730,000, to
The be
acquisitions
satisfied byofthethe above of
issuance companies
67,300,000were completed
ordinary shares on 26 January
in MPTSB 2022 price
at an issue and
of RM0.10
consolidated per Share.
using merger method of accounting.
1.2 LISTING
The SCHEME
acquisitions of the above companies were completed on 26 January 2022 and
consolidated using merger method of accounting.
In conjunction with and as an integral part of the listing of and quotation for the entire issued
1.2 share capital
LISTING of MNHB on the ACE Market of Bursa Malaysia Securities Berhad (“the Listing
SCHEME
Scheme”), MNHB will implement the following:-
In conjunction with and as an integral part of the listing of and quotation for the entire issued
share capital
(i) PublicofIssue
MNHB on the ACE Market of Bursa Malaysia Securities Berhad (“the Listing
Scheme”), MNHB will implement the following:-
The Public Issue of 81,750,000 new Shares, representing approximately 20% of the
(i) enlarged Share capital of MNHB at an issue price of RM0.21 per Share allocated in
Public Issue
the following manner:-
enlarged Share capital
20,437,600 Publicof Issue
MNHBShares
at an issue price
will be of RM0.21
made per for
available Share allocatedby
application in
the following manner:-
the Malaysian Public by way of balloting;
 20,437,600Public
8,175,000 PublicIssue
IssueShares
Shareswillwill
bebe made
made available
available for for application
application by
by the
the Malaysian
eligible Public
directors and by way of balloting;
employees of the Group;
 8,175,000 Public
51,093,800 PublicIssue
IssueShares
Shareswillwill
bebemade
madeavailable for for
available application by the
application by
eligible
way of directors and employees
private placement of the Group;
to Bumiputera investors approved by Ministry of
International Trade and Industry (“MITI”); and
 51,093,800 Public Issue Shares will be made available for application by
 way of private
2,043,600 placement
Public to Bumiputera
Issue Shares investors
will be made approved
available by Ministry
for application by wayof
International Trade and
of private placement Industry investors.
to selected (“MITI”); and
(ii) Offer
 for Sale Public Issue Shares will be made available for application by way
2,043,600
of private placement to selected investors.
Concurrent with the Listing, the Offer for Sale of 40,875,000 Shares at the Initial
(ii) Offer
publicfor Sale price, payable in full application, will be made available by way of
offering
private placement to selected investors.
Concurrent with the Listing, the Offer for Sale of 40,875,000 Shares at the Initial
public offering price, payable in full application, will be made available by way of
Page 15
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
1.2 LISTING SCHEME (CONT’D)
(iii) Proposed Listing
1.2 LISTING SCHEME (CONT’D)
The admission of the listing of and quotation for the entire enlarged issued and
(iii) paid-up share
Proposed Listingcapital of MNHB of RM49,867,501.80 comprising 408,750,000
Shares on the ACE Market of Bursa Malaysia Securities Berhad will be sought.
The admission of the listing of and quotation for the entire enlarged issued and
1.3 SHARE paid-up
CAPITALshare capital of MNHB of RM49,867,501.80 comprising 408,750,000
Shares on the ACE Market of Bursa Malaysia Securities Berhad will be sought.
As at the date of this report, the share capital of MNHB is RM32,700,001.80 comprising
1.3 327,000,000
SHARE Shares.
CAPITAL
Theatdetails
As of the
the date of changes in the issued
this report, share capital
share capital of MNHB
of MNHB since its incorporation
is RM32,700,001.80 are
comprising
as follows:- Shares.
327,000,000
Cumulative
The details of the changes in the issued share capital of MNHB since its incorporation are
as follows:- issued
No. of Cumulative share
shares no. of shares capital
Cumulative
Date of allotment alloted allotted Consideration RM
issued
No. of Cumulative share
26 November 2020 shares 2 2
no. of shares Cash capital 2
Date of allotment alloted allotted Consideration RM
26 January 2022 259,699,998 259,700,000 Acquisition of 25,970,002
26 November 2020 2 2 Cash
MNSB 2
26 January 2022 67,300,000

259,699,998 327,000,000
259,700,000 Acquisition of 32,700,002
25,970,002
MPTSB
MNSB
Upon listing2022
26 January 81,750,000
67,300,000 408,750,000
327,000,000 Public issue
Acquisition of 49,867,502
32,700,002
MPTSB
Upon listing 81,750,000 408,750,000 Public issue 49,867,502
Page 16
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313
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
2. BASIS OF PREPARATION
2.1 On 26 November 2020, MNHB was incorporated as a public limited liability company and
2. BASIS domiciled
OF PREPARATION
in Malaysia.
2.1 On 26
Our November
basis 2020, MNHB
of preparation wascombined
for the incorporated as a public
financial limitedfor
statements liability companyyear
the financial and
domiciled in Malaysia.
ended (“FYE”) 30 June 2018, 2019, 2020 and 2021, and for the financial period ended
(“FPE”) 31 October 2020 and FPE 31 October 2021 are prepared based on the separate
Our basis
financial of preparation
statements of MNHB,for the
MNSB combined financial
and MPTSB statements
(collectively for as
known the“the
financial year
Group”).
ended (“FYE”) 30 June 2018, 2019, 2020 and 2021, and for the financial period ended
(“FPE”)combined
These 31 October 2020 and
financial FPE 31 of
statements October 2021are
the Group arethe
prepared basedoronaggregation
combination the separateof
financial
all of the statements of MNHB,ofMNSB
financial statements and MPTSB
the entities (collectively
of the Group known
and have as prepared
been “the Group”).
based
on the financial statements for the relevant financial years/periods as follows:
These combined financial statements of the Group are the combination or aggregation of
all of the financial statements of the entities of the Accounting
Group and have been prepared based
on the financial statements for the relevant
Relevant reportingfinancialstandards
years/periods as follows:
Company years/periods applied Auditors
Accounting
MN Holdings Berhad FPE Relevant
from 26 reporting
November standards
Company 2020 years/periods
to 30 June 2021 applied
MFRSs CroweAuditors
Malaysia PLT
FPE from 1 July 2021
MN Holdings Berhad FPE to 31from 26 November
October 2021 MFRSs Crowe Malaysia PLT
2020 to 30 June 2021 MFRSs Crowe Malaysia PLT
Mutu Nusantara FPE
FYEfrom 1 July2018
30 June 2021 MPERS T.E. Lim & Co
Sdn. Bhd. to
FYE31 30October 2021
June 2019 MFRSs Crowe Malaysia
Crowe Malaysia PLT
PLT
FYE 30 June 2020 MFRSs Crowe Malaysia PLT
Mutu Nusantara FYE 30 June 2021 2018 MPERS
MFRSs T.E. Lim
Crowe & Co PLT
Malaysia
Sdn. Bhd. FYEfrom
FPE 30 June
1 July2019
2021 MFRSs Crowe Malaysia PLT
FYE
to 31 30 June 2020
MN Power FPE
FYEfrom 1 July2018
30 June 2021 MPERS T.E. Lim & Co
Transmission Sdn. to
FYE31 30October 2021
June 2019 MFRSs Crowe Malaysia PLT
Bhd. FYE 30 June 2020 MFRSs Crowe Malaysia PLT
MN Power FYE 30 June 2021 2018 MPERS
MFRSs T.E. Lim
Crowe & Co PLT
Malaysia
Transmission Sdn. FYEfrom
FPE 30 June
1 July2019
2021 MFRSs Crowe Malaysia PLT
Bhd. FYE
to 31 30 June 2020
Notes:- FPE from 1 July 2021
FPE to 31 October
- financial period2021
ended MFRSs Crowe Malaysia PLT
FYE - financial year ended
Notes:-
MPERS - Malaysian Private Entities Reporting Standard
FPE
MFRSs financial period
- Malaysian ended
Financial Reporting Standards
FYE - financial year ended
MPERS - Malaysian Private Entities Reporting Standard
MFRSs - Malaysian Financial Reporting Standards
Page 17
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
2. BASIS OF PREPARATION (CONT’D)
2.1 For the purposes of the combined financial statements, the entities of the Group consist
2. BASIS of
OFcompanies
PREPARATION (CONT’D)
under common control for the FYE 30 June 2018, 30 June 2019, 30 June
2020 and 30 June 2021, and FPE 31 October 2020 and FPE 31 October 2021 as
2.1 For the purposes
described in Noteof1the to combined
the combined financial statements,
financial the entities
statements of the Group
and continue to beconsist
under
of companies
common under
control common
after control for
31 October 2021.the The
FYE audited
30 June financial
2018, 30 statements
June 2019, 30 areJune
not
2020 and to30any
subjected Juneaudit2021, and FPE
qualification, 31 October
modification and 2020 and FPE 31 October 2021 as
disclaimer.
described in Note 1 to the combined financial statements and continue to be under
commonunder
Entities control after 31
common October
control 2021. which
are entities The audited financial
are ultimately statements
controlled by thearesame
not
subjected
parties andtothat
anycontrol
audit qualification, modification
is not transitory. Control andexists disclaimer.
when the same parties have, as a
result of contractual agreements, ultimate collective power to govern the financial and
Entities under
operating common
policies of each control
of thearecombining
entities which
entitiesaresoultimately controlled
as to obtain by from
benefits the same
their
parties and
activities, thatthat
and control is not
ultimate transitory.
collective Control
power exists
is not when the
transitory. Thesame parties
financial have, asof
statements a
result of contractual
commonly controlled agreements, ultimateincollective
entities are included the combinedpowerfinancial
to govern the financial
statements from and
the
operating
day policies
that control of each ofuntil
commences the the
combining
date thatentities
control so as to obtain benefits from their
ceases.
activities, and that ultimate collective power is not transitory. The financial statements of
commonly
The combined controlled
financialentities are included
statements in the combined
of the Group financial
for the relevant statements
period from the
were prepared in
day that control
a manner similar commences until the date thatmethod,
to the “pooling-of-interest” control ceases.
as if the entities within the Group
were operating as a single economic enterprise from the beginning of the earliest
The combined
comparative financial
period statements
covered of the Group
by the relevant period fororthe
therelevant
date of period were prepared
incorporation in
of entities
a manner
within similar to
the Group, the “pooling-of-interest”
if later. Such manner of presentationmethod, asreflects
if the entities within the
the economic Group
substance
were
of the operating
combiningas a single which
companies, economic wereenterprise
under common from control
the beginning
throughoutof the
the relevant
earliest
comparative period covered by the relevant period or the date of incorporation of entities
period.
within the Group, if later. Such manner of presentation reflects the economic substance
of
The the combiningassets
identifiable companies, which were
and liabilities of all under
commonlycommon control
controlled throughout
entities the relevant
are accounted for
period.
at their historical costs. The accounting policies of common controlled entities have been
changed where necessary to align them with the policies adopted by the Group.
The identifiable assets and liabilities of all commonly controlled entities are accounted for
at
Alltheir historical
material costs. transactions
intra-group The accounting and policies
balances of have
commonbeencontrolled
eliminatedentities have been
on combination.
changed where necessary to align them with the policies adopted by the Group.
The combined financial statements of the Group are prepared under the historical cost
All material intra-group
convention and modified transactions
to include andother
balances
bases have
of been eliminated
valuation on combination.
as disclosed in other
sections under significant accounting policies, and in compliance with Malaysian
The combined
Financial financial
Reporting statements
Standards of the and
(“MFRSs”) Group are prepared
International under
Financial the historical
Reporting cost
Standards
convention
(“IFRSs”) andand the modified
Prospectus toGuidelines.
include other bases of valuation as disclosed in other
sections under significant accounting policies, and in compliance with Malaysian
2.2 Financial Reporting
Early adoption of MFRSStandards
effective(“MFRSs”) and International
for the financial Financialon
period beginning Reporting
or after 1Standards
January
(“IFRSs”) and the Prospectus Guidelines.
2019:
2.2 Early adoption

MFRS 16 Leases of MFRS effective for the financial period beginning on or after 1 January
2019:
The Group has elected to early adopt MFRS 16 which will take effect on or after 1
MFRS 162019,
January Leases on 1 July 2017. The impacts on the financial statements of the Group
upon its initial application of MFRS 16 are disclosed in Note 35 to the combined financial
The Group has elected to early adopt MFRS 16 which will take effect on or after 1
statements.
January 2019, on 1 July 2017. The impacts on the financial statements of the Group
upon
MFRSits16 initial
setsapplication of MFRS for
out the principles 16 are
the disclosed
recognition,in Note 35 to the combined
measurement, financial
presentation and
statements.of leases and replaced the previous guidance on lease accounting. Under
disclosure
MFRS 16, the classification of leases as either finance leases or operating leases is
MFRS 16 for
eliminated setslessees.
out the All
principles
lessees for arethe recognition,
required measurement,
to recognise presentation
their lease assets and and
the
disclosure
related leaseof obligations
leases andinreplaced the previous
the statement guidance
of financial positionon(with
lease accounting.
limited Under
exceptions) as
MFRS 16, the
right-of-use classification
assets and lease of leases respectively.
liabilities as either finance leases or operating
The right-of-use leases
assets are is
subject
eliminated
to for lessees.
depreciation and theAll lesseesonare
interest required
lease to recognise
liabilities their lease
are calculated usingassets and the
the effective
related lease
interest method.obligations in the statement of financial position (with limited exceptions) as
right-of-use assets and lease liabilities respectively. The right-of-use assets are subject
to depreciation and the interest on lease liabilities are calculated using the effective Page 18
interest method.
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
2. BASIS OF PREPARATION (CONT’D)
2.3 The Group has not applied in advance the following accounting standards and/or
2. BASIS interpretations
OF PREPARATION (CONT’D)
(including the consequential amendments, if any) that have been issued
by the Malaysian Accounting Standards Board (“MASB”) but are not yet effective for the
2.3 The Group
financial has not applied in advance the following accounting standards and/or
period:-
interpretations (including the consequential amendments, if any) that have been issued
by the Malaysian
MFRSs and/or ICAccounting Standards
Interpretations BoardThe
(Including (“MASB”) but are not yet effective for the
Consequential
financial period:-
Amendments) Effective Date
MFRS 17 Insurance Contracts 1 January 2023
MFRSs and/or IC Interpretations (Including The Consequential
Amendments)
Amendments to MFRS 3: Reference to the Conceptual Framework 1Effective Date
January 2022
MFRS 17 Insurance
Amendments Contracts
to MFRS 10 and MFRS 128: Sale or Contribution of 1 January 2023
Assets between an Investor and its Associate or Joint Venture Deferred
Amendments to MFRS 3: Reference to the Conceptual Framework 1 January 2022
Amendments to
Amendments MFRS 10
to MFRS 17 Insurance
and MFRSContracts
128: Sale or Contribution of 1 January 2023
Assets between
Amendment an Investor
to MFRS and its Associate
101: Classification or JointasVenture
of Liabilities Current Deferred
or Non-current 1 January 2023
Amendments to MFRS 17 Insurance Contracts 1 January 2023
Amendments
Amendment totoMFRS
MFRS101:
101:Classification
Disclosure ofofAccounting Policies
Liabilities as Current 1 January 2023
or Non-current
Amendments to MFRS 108: Definition of Accounting Estimates 1 January 2023
Amendments to MFRS 101: Disclosure
112: Deferred of Accounting
Tax Policies
related to Assets and 1 January 2023
Liabilities arising from a Single Transaction 1 January 2023
Amendments to MFRS 108: Definition of Accounting Estimates 1 January 2023
Amendments to MFRS 116: Property, Plant and Equipment -
Amendments to MFRS 112: Deferred Tax related to Assets and
Proceeds before Intended Use 1 January 2022
Liabilities arising from a Single Transaction 1 January 2023
Amendments
Amendments to to MFRS
MFRS 137:
116: Onerous
Property, Contracts
Plant and -Equipment
Cost of Fulfilling
-
a Contract
Proceeds before Intended Use 1 January
1 January 2022
2022
Annual Improvements
Amendments to MFRSto MFRS
137: Standards
Onerous 2018--Cost
Contracts 2020of Fulfilling 1 January 2022
a Contract 1 January 2022
The adoption of the above accounting standards and/or interpretations (including the
Annual Improvements
consequential to MFRS
amendments, if Standards 2018 - 2020
any) is expected to have no material 1impact
January
on2022
the
combined financial statements of the Group upon their initial application.
The adoption of the above accounting standards and/or interpretations (including the
consequential amendments, if any) is expected to have no material impact on the
combined financial statements of the Group upon their initial application.
Page 19
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3. SIGNIFICANT ACCOUNTING POLICIES
3.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
3. SIGNIFICANT ACCOUNTING POLICIES
The outbreak of the COVID-19 has brought unprecedented challenges and added economic
3.1 CRITICAL ACCOUNTING
uncertainties in Malaysia and ESTIMATES
markets inAND whichJUDGEMENTS
the Group operates. While the Group has
considered the potential financial impact of the COVID-19 pandemic in the preparation of
The
theseoutbreak
financial of the COVID-19the
statements, hasfullbrought unprecedented
financial impact to challenges
the Groupand added uncertain.
remains economic
uncertainties
Accordingly, therein Malaysia and markets
is a possibility in which
that factors not the Groupanticipated
currently operates. byWhile
the the Groupcould
directors has
considered
occur in thethe potential
future financial impact
and therefore of the
affect the COVID-19
recognition andpandemic in the of
measurement preparation
the Group’sof
these financial
assets statements,
and liabilities the fulldate.
at the reporting financial impact to the Group remains uncertain.
Accordingly, there is a possibility that factors not currently anticipated by the directors could
occurSources
Key in the future and therefore
of Estimation affect the recognition and measurement of the Group’s
Uncertainty
assets and liabilities at the reporting date.
Management believes that there are no key assumptions made concerning the future, and
Key Sources
other key sources of Estimation
of estimation Uncertainty
uncertainty at the reporting date, that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the
Management
next financial yearbelieves
otherthatthanthere are no key
as disclosed assumptions made concerning the future, and
below:-
other key sources of estimation uncertainty at the reporting date, that have a significant risk
of
(a)causing a material adjustment
Depreciation of Property, to the
Plantcarrying amounts of assets and liabilities within the
and Equipment
next financial year other than as disclosed below:-
The estimates for the residual values, useful lives and related depreciation charges
(a) Depreciation
for the property, ofplant
Property, Plant andare
and equipment Equipment
based on commercial factors which could
change significantly as a result of technical innovations and competitors’ actions in
The estimates
response to theformarket
the residual values,
conditions. Theuseful
Group lives and related
anticipates thatdepreciation
the residualcharges
values
forits
of theproperty,
property,plantplantandandequipment
equipmentwill are
bebased on commercial
insignificant. factors
As a result, whichvalues
residual could
change
are not significantly
being takenasinto a result of technical
consideration forinnovations and competitors’
the computation actions in
of the depreciable
responseChanges
amount. to the marketin theconditions.
expected The levelGroup
of usage anticipates that the residual
and technological values
development
of its property,
could impact the plant and equipment
economic will beand
useful lives insignificant.
the residualAs values
a result,ofresidual values
these assets,
are not being
therefore futuretaken into consideration
depreciation charges could for bethe revised.
computation of the depreciable
The carrying amount of
amount.
property, Changes
plant and in the expected
equipment as at level of usagedate
the reporting andistechnological development
disclosed in Note 4 to the
could
combined impact the economic
financial statements. useful lives and the residual values of these assets,
therefore future depreciation charges could be revised. The carrying amount of
(b) property,
Impairment plantofand equipment
Property, as at
Plant andtheEquipment,
reporting dateInvestment
is disclosedProperties
in Note 4 toand
the
combined financial
Right-of-use Assetsstatements.
(b) Impairment
The of Property,
Group determines Plant an
whether anditemEquipment, Investment
of its property, plant Properties
and equipment, and
Right-of-use
investment Assets and right-of-use assets are impaired by evaluating the extent
properties
to which the recoverable amount of the asset is less than its carrying amount. This
The Groupisdetermines
evaluation subject to whether
changesan itemasofmarket
such its property, plant and
performance, equipment,
economic and
investment
political properties
situation andcountry.
of the right-of-use assetsofare
A variety impaired
methods is by evaluating
used the extent
to determine the
to which the amount,
recoverable recoverable amount
such of the asset
as valuation is less
reports andthan its carrying
discounted cashamount.
flows. This
For
evaluation is
discounted subject
cash flows,tosignificant
changes judgement
such as market performance,
is required economicof and
in the estimation the
political
present situation
value of offuture
the country.
cash flowsA variety of methods
generated by the is used
assets,to which
determine the
involve
recoverable
uncertainties amount,
and are such as valuation
significantly affectedreports and discounted
by assumptions cashjudgements
used and flows. For
discounted
made regardingcash estimates
flows, significant
of futurejudgement
cash flows is and
required in the
discount estimation
rates. of the
The carrying
present value
amounts of future
of property, plantcash flows generated
and equipment, by the
investment assets,and
properties which involve
right-of-use
uncertainties
assets as at theandreporting
are significantly
date areaffected
disclosedbyinassumptions
Notes 4, 5 and used6 to
andthejudgements
combined
made regarding
financial estimates of future cash flows and discount rates. The carrying
statements.
amounts of property, plant and equipment, investment properties and right-of-use
assets as at the reporting date are disclosed in Notes 4, 5 and 6 to the combined
financial statements.
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D)
Key Sources of Estimation Uncertainty (Cont’d)
(c) Impairment of Trade Receivables and Contract Assets
The Group uses the simplified approach to estimate a lifetime expected credit loss
(c) Impairment
allowance forofallTrade
tradeReceivables
receivables and andcontract
Contractassets.
AssetsThe contract assets are
grouped with trade receivables for impairment assessment because they have
The Group uses
substantially the the
samesimplified approach to as
risk characteristics estimate a lifetime
the trade expected
receivables for credit
the sameloss
allowance
types for all trade
of contracts. Thereceivables
Group developsand contract assets. loss
the expected The rates
contract
basedassetson are
the
grouped with trade
payment profiles receivables
of past for impairment
sales including changes in assessment
the customer because
payment they have
profile in
substantially
response to the theCOVID-19
same riskpandemic
characteristics
and the ascorresponding
the trade receivables
historical for thelosses,
credit same
typesadjusts
and of contracts. The Group
for qualitative develops the
and quantitative expected
reasonable and loss rates based
supportable on the
impact
payment values
carrying profilesofoftrade
past sales including
receivables andchanges
contractinassets.
the customer payment
The carrying profile of
amounts in
response
trade to the COVID-19
receivables pandemic
and contract assets andasthe atcorresponding
the reporting historical
date are credit losses,
disclosed in
and adjusts
Notes 7 and for
9 toqualitative and financial
the combined quantitative reasonable and supportable impact the
statements.
carrying values of trade receivables and contract assets. The carrying amounts of
(d) trade receivables
Impairment and contract
of Non-Trade assets as at the reporting date are disclosed in
Receivables
Notes 7 and 9 to the combined financial statements.
The loss allowances for non-trade financial assets are based on assumptions
(d) Impairment
about risk of of Non-Trade
default Receivables
and expected loss rates. It also requires the Group to assess
whether there is a significant increase in credit risk of the non-trade financial
The
assetslossat allowances
the reportingfor non-trade
date. Thefinancial
Group uses assetsjudgement
are basedinonmaking assumptions
these
about risk of default
assumptions and expected
and selecting loss rates.
appropriate It also
inputs to requires the Groupcalculation,
the impairment to assess
whether
based onthere the is a significant
past increaseexisting
payment trends, in creditmarket
risk ofconditions
the non-trade financial
and forward-
assets incorporating
looking at the reporting date. The
the impact Group uses
of COVID-19 judgement
pandemic. in making
The carrying amountthese of
assumptions
other receivablesand as selecting appropriate
at the reporting date inputs to thein impairment
is disclosed Note 8 to thecalculation,
combined
based onstatements.
financial the past payment trends, existing market conditions and forward-
looking incorporating the impact of COVID-19 pandemic. The carrying amount of
other receivables as at the reporting date is disclosed in Note 8 to the combined
Page 21
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
(e) Revenue Recognition for Construction Contracts
The Group recognises construction revenue by reference to the construction
(e) Revenue Recognition
progress using the input for Construction Contractsbased on the proportion of
method, determined
construction costs incurred for work performed to date over the estimated total
The Group recognises
construction costs. The construction
total estimated revenue by reference
costs are based on to the construction
approved budgets,
progress
which require using the inputand
assessment method,
judgement determined
to be made based on thein,proportion
on changes for example, of
construction costs incurred
work scope, changes in costs forand
work performed
costs to dateInover
to completion. the the
making estimated total
judgement,
construction
managementcosts. relies The
on past totalexperience
estimated and coststheareworkbased on approved
of specialists. The budgets,
carrying
which require
amounts assessment
of contract assets andand
judgement
contract toliabilities
be madeasonatchanges in, for example,
the reporting date are
work scope,
disclosed changes
in Note in costs
9 to the and costs
combined to completion.
financial statements. In making the judgement,
management relies on past experience and the work of specialists. The carrying
(f) amounts Taxes
Income of contract assets and contract liabilities as at the reporting date are
disclosed in Note 9 to the combined financial statements.
There are certain transactions and computations for which the ultimate tax
(f) Income Taxesmay be different from the initial estimate. The Group recognises tax
determination
liabilities based on its understanding of the prevailing tax laws and estimates of
There are
whether such certain transactions
taxes will be due in and computations
the ordinary course for which the
of business. ultimate
Where tax
the final
determination
outcome may bematters
of these differentisfrom the initial
different fromestimate. The Group
the amounts that recognises tax
were initially
liabilities based
recognised, suchondifference
its understanding
will impactofthe
theincome
prevailingtax tax laws and
expense and estimates
deferred taxof
whether such
balances in thetaxes
periodwillinbe duesuch
which in the ordinary course
determination of business. Where the final
is made.
outcome of these matters is different from the amounts that were initially
recognised, such difference will impact the income tax expense and deferred tax
balances in the period in which such determination is made.
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
Critical Judgements Made in Applying Accounting Policies
Management believes that there are no instances of application of critical judgement in
Critical Judgements
applying the Group’sMade in Applying
accounting Accounting
policies which Policies
will have a significant effect on the
amounts recognised in the combined financial statements other than as disclosed
Management believes that there are no instances of application of critical judgement in
below:-
applying the Group’s accounting policies which will have a significant effect on the
amounts
(a) recognised in between
Classification the combined financial statements
Investment Properties other
and than as disclosed
Owner-occupied
below:- Properties
(a) Classification
Some properties between
comprise aInvestment
portion that Properties
is held to earn andrentals
Owner-occupied
or for capital
Properties
appreciation and another portion that is held for use in the production or supply
of goods or services or for administrative purposes. If these portions could be
Some properties(or
sold separately comprise
leased aout portion that isunder
separately held to earn rentals
a finance lease),or the
for capital
Group
appreciation
accounts and portions
for the another separately.
portion thatIfisthe
held for usecould
portions in thenotproduction or supply
be sold separately,
of
thegoods or services
property or forproperty
is investment administrative purposes.
only if an If these
insignificant portions
portion is heldcould be
for use
sold
in theseparately
production (or leasedofout
or supply separately
goods or servicesunder a administrative
or for finance lease),purposes.
the Group
accounts for the portions separately. If the portions could not be sold separately,
(b) the property
Lease Termsis investment property only if an insignificant portion is held for use
in the production or supply of goods or services or for administrative purposes.
Some leases contain extension options exercisable by the Group before the end
(b) Lease
of theTermsnon-cancellable contract period. In determining the lease term,
management considers all facts and circumstances including the past practice
Some
and any leases contain
cost that extension
will be incurredoptions exercisable
to change the assetbyif the Groupto
an option before
extend theisend
not
of the Annon-cancellable
taken. extension option contract
is only period.
includedInin determining
the lease term theif lease
the leaseterm,
is
management
reasonably certainconsiders all facts and
to be extended circumstances
(or not terminated).including the past practice
and any cost that will be incurred to change the asset if an option to extend is not
(c) taken. An extension
Contingent Liabilitiesoption is only included in the lease term if the lease is
reasonably certain to be extended (or not terminated).
The recognition and measurement for contingent liabilities are based on
(c) Contingent Liabilities
management’s view of the expected outcome on contingencies after consulting
legal counsel for litigation cases and experts, for matters in the ordinary course
The
of recognition and measurement for contingent liabilities are based on
business.
management’s view of the expected outcome on contingencies after consulting
legal counsel for litigation cases and experts, for matters in the ordinary course
of business.
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.2 BASIS OF COMBINATION
The Group resulting from the restructuring exercise, as disclosed in Note 1.1 above,
3.2 BASIS OF COMBINATION
comprises entities under common control. Accordingly, the combined financial statements
have been accounted for using principles of merger accounting.
The Group resulting from the restructuring exercise, as disclosed in Note 1.1 above,
comprises entities
Subsidiaries under controlled
are entities common control.
by the Accordingly, the combined
Group. The Group controlsfinancial
an entitystatements
when the
have been
Group accounted
is exposed forhas
to, or using principles
rights of merger
to, variable accounting.
returns from its involvement with the entity
and has the ability to affect those returns through its power over the entity.
Subsidiaries are entities controlled by the Group. The Group controls an entity when the
Group is exposed
Subsidiaries to, or has rights
are consolidated fromto,
thevariable
date onreturns
which from its is
control involvement
transferredwith theGroup
to the entity
andtohas
up thethe ability date
effective to affect thosecontrol
on which returnsceases,
throughasitsappropriate.
power over the entity.
Subsidiaries
Intragroup are consolidated
transactions, fromincome
balances, the date onexpenses
and which control is transferred
are eliminated to the Group
on consolidation.
up to the effective
Intragroup lossesdatemay on which
indicate control
an ceases,
impairmentas appropriate.
that requires recognition in the
consolidated financial statements. Where necessary, adjustments are made to the
Intragroupstatements
financial transactions, of balances,
subsidiaries income and expenses
to ensure consistencyare eliminated
of accountingon consolidation.
policies with
Intragroup
those of the losses
Group. may indicate an impairment that requires recognition in the
consolidated financial statements. Where necessary, adjustments are made to the
financialBusiness
(a) statements of subsidiaries to ensure consistency of accounting policies with
Combinations
those of the Group.
Acquisitions of businesses are accounted for using the acquisition method. Under
(a) Business
the Combinations
acquisition method, the consideration transferred for acquisition of a
subsidiary is the fair value of the assets transferred, liabilities incurred and the
Acquisitions
equity interests of businesses
issued by are the accounted
Group at the for using the acquisition
acquisition date. Themethod. Under
consideration
the acquisition
transferred method,
includes the fairthe value
consideration transferred
of any asset for acquisition
or liability resulting from of a
subsidiary
contingent is the fair value
consideration of the assets
arrangement. transferred, liabilities
Acquisition-related incurred
costs, and the
other than
equity to
costs interests issued
issue debt or by the securities,
equity Group at the areacquisition
recogniseddate. The or
in profit consideration
loss when
transferred includes the fair value of any asset or liability resulting from a
incurred.
contingent consideration arrangement. Acquisition-related costs, other than the
costs
In to issuecombination
a business debt or equity securities,
achieved are recognised
in stages, previously heldin profit
equityor interests
loss when in
incurred.
the acquiree are remeasured to fair value at the acquisition date and any
corresponding gain or loss is recognised in profit or loss.
In a business combination achieved in stages, previously held equity interests in
the acquiree are
Non-controlling remeasured
interests to fair value
in the acquiree may be at initially
the acquisition
measured date andat any
either fair
corresponding
value or at thegain or loss is recognised
non-controlling interests’ inproportionate
profit or loss.share of the fair value of
the acquiree’s identifiable net assets at the date of acquisition. The choice of
Non-controlling
measurement basis interests
is madein theon aacquiree may be initially measured
transaction-by-transaction basis. either at fair
value or at the non-controlling interests’ proportionate share of the fair value of
the acquiree’s
However, identifiable net
an acquisition thatassets
resultedat the
in adate of acquisition.
business The choice
combination of
involving
measurement
common control basis is made
entities on a transaction-by-transaction
is outside the scope of MFRS 3 Business basis. Combinations.
For such common control combinations, the merger accounting principles are
However,
used to includean acquisition
the assets,that resulted
liabilities, in aequity
results, business
changescombination
and cashinvolving
flows of
common
the control
combining entities
entities in is
theoutside
auditedthe scope of
financial MFRS 3 Business Combinations.
statements.
For such common control combinations, the merger accounting principles are
used to include the assets, liabilities, results, equity changes and cash flows of
the combining entities in the audited financial statements.
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.2 BASIS OF COMBINATION (CONT’D)
(a) Business Combinations (Cont’d)
In applying merger accounting, financial statements items of the combining
(a) Businessof
entities Combinations
businesses(Cont’d)
for the reporting period in which common control
combination occurs are included in the audited financial statements of the Group
In ifapplying
as merger accounting,
the combination had occurredfinancial
from thestatements
date when the items of the combining
combining entities or
entities of first
businesses businesses
come under for the
the control
reporting
of theperiod in which
controlling party common
or parties. control
Under
combination
merger occurs the
accounting, are Group
included in the audited
recognizes financial
the assets, statements
liabilities of the Group
and equity of the
as if the combination
combining entities orhad occurred from
businesses at thethecarrying
date when amountthe combining
as if such entities
auditedor
businesses
financial first come had
statements underbeenthe control
preparedof thebycontrolling party orparty
the controlling parties. Under
including
merger accounting,
adjustments required thefor
Group recognizes
conforming to the assets,
Groups’liabilities
accounting and equity
policiesof and
the
combining
applying those entities or businesses
policies to all periodat presented.
the carrying amount
There is no as if such audited
recognition of any
financial
goodwill or statements
a gain from hadbargain
been purchase
prepared at by thethetime
controlling party including
of the common control
adjustments required
combination. The effect for ofconforming to theand
all transactions Groups’
balancesaccounting
betweenpolicies and
combining
applying whether
entities, those policies to allbefore
occurring periodorpresented. There is no recognition
after the combination, of any
are eliminated in
goodwill orthea audited
preparing gain from bargainfinancial
combined purchase at the time
statements of the ofGroup.
the common control
combination. The effect of all transactions and balances between combining
(b) entities, whether
Non-controlling occurring before or after the combination, are eliminated in
Interests
preparing the audited combined financial statements of the Group.
Non-controlling interests are presented within equity in the consolidated
(b) Non-controlling
statement Interests
of financial position, separately from the equity attributable to owners
of the Company. Profit or loss and each component of other comprehensive
Non-controlling
income are attributed interests
to theare presented
owners within equity
of the Company and to in the
thenon-controlling
consolidated
statement Total
interests. of financial position, separately
comprehensive income is from the equity
attributed attributable tointerests
to non-controlling owners
of theif Company.
even this results Profit or loss and each
in the non-controlling component
interests having of other balance.
a deficit comprehensive
income are attributed to the owners of the Company and to the non-controlling
(c) interests. inTotal
Changes comprehensive
Ownership Interests inincome is attributed
Subsidiaries Withoutto non-controlling
Change of Control interests
even if this results in the non-controlling interests having a deficit balance.
All changes in the parent’s ownership interest in a subsidiary that do not result in
(c) Changes
a loss ofin control
Ownership areInterests
accounted in Subsidiaries
for as equity Without Change of Control
transactions. Any difference
between the amount by which the non-controlling interest is adjusted and the fair
All changes
value of the in the parent’s paid
consideration ownership interest
or received in a subsidiary
is recognised that in
directly dothe
notequity
result of
in
a loss
the of control are accounted for as equity transactions. Any difference
Group.
between the amount by which the non-controlling interest is adjusted and the fair
value of the consideration paid or received is recognised directly in the equity of
the Group.
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
(d) Loss of Control
Upon the loss of control of a subsidiary, the Group recognises any gain or loss
(d) Loss
on of Control
disposal in profit or loss which is calculated as the difference between:-
Upon
(i) the
theloss of control
aggregate of of
theafair
subsidiary,
value of the
the Group recognises
consideration any gain
received or loss
and the fair
on disposal
valuein of
profit
anyorretained
loss which is calculated
interest as the
in the former differenceand
subsidiary; between:-
(i)
(ii) the aggregate
the of the fairamount
previous carrying value ofofthe
theconsideration received
assets (including and the and
goodwill), fair
value of any
liabilities retained
of the formerinterest in the
subsidiary and former subsidiary; andinterests.
any non-controlling
(ii)
Amounts the previousrecognised
previously carrying amount
in other of the assets (including
comprehensive income ingoodwill),
relation to and
the
liabilities ofare
former subsidiary theaccounted
former subsidiary
for in theand anymanner
same non-controlling
as wouldinterests.
be required if
the relevant assets or liabilities were disposed of (i.e. reclassified to profit or loss
Amounts previously
or transferred recognised
directly in other
to retained comprehensive
profits). The fair valueincome in relation
of any to the
investments
former
retainedsubsidiary are accounted
in the former subsidiary for in the
at the same
date whenmanner
controlasiswould
lost isbe requiredas
regarded if
the
the relevant
fair valueassets
of theor liabilities
initial were disposed
recognition of (i.e. reclassified
for subsequent accounting to profitMFRS
under or loss9
or
or, transferred directly the
when applicable, to retained
cost on profits). The fair value
initial recognition of anof investment
any investments
in an
retained inorthe
associate former
a joint subsidiary at the date when control is lost is regarded as
venture.
the fair value of the initial recognition for subsequent accounting under MFRS 9
or, when applicable, the cost on initial recognition of an investment in an
associate or a joint venture.
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.3 FUNCTIONAL AND FOREIGN CURRENCIES
(a) Functional and Presentation Currency
3.3 FUNCTIONAL AND FOREIGN CURRENCIES
The combined financial statements are presented in Ringgit Malaysia (“RM”),
(a) Functional
which is the and Presentation
Group’s functional Currency
and presentation currency.
(b) The
Foreign combined
Currency financial statements
Transactions andare presented in Ringgit Malaysia (“RM”),
Balances
which is the Group’s functional and presentation currency.
Transactions in foreign currencies are converted into RM on initial recognition,
(b) Foreign
using theCurrency
exchangeTransactions and Balances
rates at the transaction dates. Monetary assets and liabilities
at the end of the reporting period are translated at the exchange rates ruling as
Transactions in foreign currencies
of that date. Non-monetary assets areand converted
liabilities are intotranslated
RM on initial usingrecognition,
exchange
using that
rates the exchange
existed when ratestheat the transaction
values dates. Monetary
were determined. assets and
All exchange liabilities
differences
at the
are end of the
recognised in reporting period are translated at the exchange rates ruling as
profit or loss.
of that date. Non-monetary assets and liabilities are translated using exchange
3.4 FINANCIAL ratesINSTRUMENTS
that existed when the values were determined. All exchange differences
are recognised in profit or loss.
Financial assets and financial liabilities are recognised in the combined statements of
3.4 FINANCIAL INSTRUMENTS
financial position when the Group has become a party to the contractual provisions of the
instruments.
Financial assets and financial liabilities are recognised in the combined statements of
financial
Financial position when are
instruments the Group
classifiedhas as
become a party
financial to thefinancial
assets, contractual provisions
liabilities of the
or equity
instruments. in accordance with the substance of the contractual arrangement and their
instruments
definitions in MFRS 132. Interest, dividends, gains and losses relating to a financial
Financial
instrument instruments
classified asare classified
a liability as financial
are reported as anassets,expense financial
or income. liabilities or equity
Distributions to
instruments in accordance
holders of financial instruments withclassified
the substance
as equity ofarethecharged
contractual arrangement
directly to equity. and their
definitions in MFRS 132. Interest, dividends, gains and losses relating to a financial
instrument classified as
Financial instruments are a offset
liabilitywhen
are reported
the Group as hasan expense
a legally or income. Distributions
enforceable right to offset to
holders of financial
and intends instruments
to settle either onclassified
a net basisas equity
or to are charged
realise directly
the asset to equity.
and settle the liability
simultaneously.
Financial instruments are offset when the Group has a legally enforceable right to offset
and intendsinstrument
A financial to settle either on a netinitially
is recognised basis or at to
its realise
fair value the(other
asset thanand settle the liability
trade receivables
simultaneously.
without significant financing component which are measured at transaction price as defined
in MFRS 15 - Revenue from Contracts with Customers at inception). Transaction costs that
A financial
are directly instrument
attributableistorecognised
the acquisitioninitially at its of
or issue fairthe
value (otherinstrument
financial than trade(otherreceivables
than a
without significant
financial instrumentfinancing
at fair value component
throughwhich
profitare measured
or loss) at transaction
are added to/deducted price as defined
from the fair
in MFRS
value 15 - Revenue
on initial recognition,fromasContracts
appropriate.with Transaction
Customers at inception).
costs on the Transaction costs that
financial instrument at
are directly attributable to the acquisition or issue of the
fair value through profit or loss are recognised immediately in profit or loss. financial instrument (other than a
financial instrument at fair value through profit or loss) are added to/deducted from the fair
value on initial
Financial recognition,
instruments as appropriate.
recognised Transaction
in the combined costs on the
statements of financial
financial instrument
position are at
fair value through
disclosed profit or loss
in the individual policyarestatement
recognisedassociated
immediately within each
profit item.
or loss.
Financial instruments recognised in the combined statements of financial position are

disclosed in the individual policy statement associated with each item.
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MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.4 FINANCIAL INSTRUMENTS (CONT’D)
(a) Financial Assets
All recognised financial assets are measured subsequently in their entirety at
(a) Financial Assetscost or fair value (through profit or loss, or other comprehensive
either amortised
income), depending on the classification of the financial assets.
All recognised financial assets are measured subsequently in their entirety at
either amortised cost or fair value (through profit or loss, or other comprehensive
Debt Instruments
income), depending on the classification of the financial assets.
(i) Amortised Cost
Debt Instruments
The financial asset is held for collection of contractual cash flows where
(i) Amortised
those cashCostflows represent solely payments of principal and interest.
Interest income is recognised by applying the effective interest rate to the
The financial
gross carrying asset is held
amount of for
thecollection
financialof asset.
contractual
Whencash the flows
assetwherehas
those cash flows
subsequently become represent solely payments
credit-impaired, the interest ofincome
principal and interest.
is recognised by
Interest
applyingincome is recognised
the effective interest by applying
rate to the the effectivecost
amortised interest rate
of the to the
financial
gross
asset. carrying amount of the financial asset. When the asset has
subsequently become credit-impaired, the interest income is recognised by
applying
The the effective
effective interestisrate
interest method to theofamortised
a method calculating cost
theof the financial
amortised cost
asset.
of a financial asset and of allocating interest income over the relevant
period. The effective interest rate is the rate that discounts estimated
The effective
future interest (including
cash receipts method is a allmethod
fees and of calculating
points paidthe oramortised
received cost
that
of a financial
form an integral asset
part and of allocating
of the interestrate,
effective interest income over thecosts
transaction relevant
and
period. The effective
other premiums interest rate
or discounts), is theexpected
excluding rate thatcredit
discounts
losses,estimated
through
future cash receipts
the expected life of(including all fees
the financial assetand orpoints paid orperiod
a shorter received that
(where
form an integral part of the effective interest rate, transaction costs and
appropriate).
other premiums or discounts), excluding expected credit losses, through
(ii) the Value
Fair expected
through life Other
of theComprehensive
financial asset or a shorter period (where
Income
appropriate).
The financial asset is held for both collecting contractual cash flows and
(ii) Fair Value
selling the through
financialOther asset,Comprehensive
where the asset’s Incomecash flows represent solely
payments of principal and interest. Movements in the carrying amount are
The
takenfinancial
throughassetotheriscomprehensive
held for both collecting
income and contractual
accumulated cash inflows
the and
fair
selling the financial asset, where the asset’s cash
value reserve, except for the recognition of impairment, interest incomeflows represent solely
payments
and foreignofexchange
principal and interest.
difference Movements
which in the carrying
are recognised directlyamount
in profitare
or
takenInterest
loss. throughincome
other is comprehensive
calculated using income and accumulated
the effective interest rateinmethod.
the fair
value reserve, except for the recognition of impairment, interest income
(iii) and foreignthrough
Fair Value exchange difference
Profit or Loss which are recognised directly in profit or
loss. Interest income is calculated using the effective interest rate method.
All other financial assets that do not meet the criteria for amortised cost or
(iii) Fair Valuethrough
fair value throughother Profitcomprehensive
or Loss income are measured at fair value
through profit or loss.
All other financial assets that do not meet the criteria for amortised cost or
fair value
The Group throughdebt
reclassifies other comprehensive
instruments when income
and onlyare measured
when at fairmodel
its business value
throughthose
for managing profit assets
or loss.change.
The Group reclassifies debt instruments when and only when its business model
for managing those assets change.
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MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
(a) Financial Assets (Cont’d)
Equity Instruments
(a) Financial Assets (Cont’d)
All equity investments are subsequently measured at fair value with gains and
Equity
losses Instruments
recognised in profit or loss except where the Group has elected to present
the subsequent changes in fair value in other comprehensive income and
All equity investments
accumulated are subsequently
in the fair value measured
reserve at initial at fair value with gains and
recognition.
losses recognised in profit or loss except where the Group has elected to present
the subsequent atchanges
The designation fair valueinthrough
fair value
other in other comprehensive
comprehensive income is not income and
permitted
accumulated in the fair value reserve at initial recognition.
if the equity investment is either held for trading or is designated to eliminate or
significantly reduce a measurement or recognition inconsistency that would
The designation
otherwise arise. at fair value through other comprehensive income is not permitted
if the equity investment is either held for trading or is designated to eliminate or
significantly
Dividend incomereducefroma this
measurement
category of or recognition
financial assets inconsistency
is recognised that would
in profit or
otherwise
loss when arise.
the Group’s right to receive payment is established unless the dividends
clearly represent a recovery of part of the cost of the equity investments.
Dividend income from this category of financial assets is recognised in profit or
(b) loss when Liabilities
Financial the Group’s right to receive payment is established unless the dividends
clearly represent a recovery of part of the cost of the equity investments.
(i) Financial Liabilities at Fair Value through Profit or Loss
(b) Financial Liabilities
Fair value through profit or loss category comprises financial liabilities that
(i) Financial
are eitherLiabilities
held for attrading
Fair Value
or arethrough Profit or
designated toLoss
eliminate or significantly
reduce a measurement or recognition inconsistency that would otherwise
Fair value
arise. The through
changesprofit
in fairorvalue
loss category comprises
of these financial financialare
liabilities liabilities that
recognised
areprofit
in either held for trading or are designated to eliminate or significantly
or loss.
reduce a measurement or recognition inconsistency that would otherwise
(ii) arise. Financial
Other The changes in fair value of these financial liabilities are recognised
Liabilities
in profit or loss.
Other financial liabilities are subsequently measured at amortised cost
(ii) Other the
using Financial Liabilities
effective interest method.
Othereffective
The financial liabilities
interest are issubsequently
method measured the
a method of calculating at amortised
amortised cost
using
of the effective
a financial interest
liability and method.
of allocating interest expense over the relevant
period. The effective interest rate is the rate that exactly discounts
The effective
estimated interest
future cashmethod is a method
payments of calculating
(including the points
all fees and amortised
paidcost
or
of a financial liability and of allocating interest expense over the
received that form an integral part of the effective interest rate, transaction relevant
period.and
costs Theothereffective
premiums interest rate is the
or discounts), rate the
through thatexpected
exactly life
discounts
of the
estimated futureorcash
financial liability payments
a shorter (including
period (where all fees and points paid or
appropriate).
received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts), through the expected life of the
financial liability or a shorter period (where appropriate).
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
(c) Equity Instruments
Equity instruments classified as equity are measured initially at cost and are not
(c) remeasured
Equity Instruments
subsequently.
Equity instruments
Ordinary shares are classified as equity
classified as equityand
arerecorded
measured initially
at the at cost
proceeds and are
received, netnot
of
remeasured subsequently.
directly attributable transaction costs.
Ordinary shares
Dividends are classified
on ordinary sharesas equity and recorded
are recognised as atliabilities
the proceeds
whenreceived,
approvednetfor
of
directly attributable transaction costs.
appropriation.
(d) Dividends on ordinary shares are recognised as liabilities when approved for
Derecognition
appropriation.
A financial asset or part of it is derecognised when, and only when, the contractual
(d) Derecognition
rights to the cash flows from the financial asset expire or when it transfers the
financial asset and substantially all the risks and rewards of ownership of the asset to
A financial
another asset
entity. Onorderecognition
part of it is derecognised when,measured
of a financial asset and only when, the contractual
at amortised cost, the
rights to the
difference cash the
between flows from amount
carrying the financial
of the asset expire
asset and theorsumwhen it consideration
of the transfers the
financial asset
received and substantially
and receivable all theinrisks
is recognised and
profit rewards
or loss. of ownership
In addition, of the asset of
on derecognition to
another entity. On derecognition
a debt instrument classified as fair of avalue
financial assetother
through measured at amortised
comprehensive cost, the
income,
difference
cumulativebetween the carrying
gain or loss previously amount of the asset
accumulated in theand
fairthe sum
value of the is
reserve consideration
reclassified
received
from andtoreceivable
equity is recognised
profit or loss. In contrast,in profit
there or loss.
is no In addition,
subsequent on derecognition
reclassification of
of the
a debt
fair instrument
value reserve toclassified as fair
profit or loss value the
following through other comprehensive
derecognition income, the
of an equity investment.
cumulative gain or loss previously accumulated in the fair value reserve is reclassified
from
A equityliability
financial to profitorora loss.
part ofInitcontrast, there is no
is derecognised subsequent
when, and onlyreclassification of the
when, the obligation
fair value in
specified reserve to profitisordischarged
the contract loss following the derecognition
or cancelled of an
or expires. Onequity investment.
derecognition of a
financial liability, the difference between the carrying amount of the financial liability
A financial liability
extinguished or a part to
or transferred of another
it is derecognised
party and the when, and only when,
consideration paid, the obligation
including any
specified in
non-cash the contract
assets transferredis discharged
or liabilitiesorassumed,
cancelledisor expires. On
recognised derecognition
in profit or loss. of a
financial liability, the difference between the carrying amount of the financial liability
extinguished or transferred to another party and the consideration paid, including any
non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
Accounting Policies Applied Until 30 June 2019
The Group has applied MFRS 9 retrospectively with cumulative financial impacts
Accounting
recognised in Policies Appliedcombined
the opening Until 30 June 2019 of financial position on 1 July 2018 (date of
statements
initial application of MFRS 9) and hence, the comparative information of its financial
The Group ishas
instruments applied As
not restated. MFRS 9 retrospectively
a result, the comparativewith cumulative
information of thefinancial impacts
Group’s financial
recognised in the to
assets continues opening combined
be accounted forstatements
in accordanceof financial position
with their on 1accounting
previous July 2018 (date of
policies
initial application
as summarised of MFRS 9) and hence, the comparative information of its financial
below:-
instruments is not restated. As a result, the comparative information of the Group’s financial
assets
 continuesassets
Financial to be were
accounted for in at
designated accordance with their
fair value through previous
profit or lossaccounting policies
when the financial
as summarised below:-
asset was either held for trading or was designated to eliminate or significantly reduce
a measurement or recognition inconsistency that would otherwise arise. Financial
 Financial
assets at assets were
fair value designated
through profit at
orfair
lossvalue
werethrough
stated profit
at fairorvalue
loss when thereporting
at each financial
asset wasany
date with either held
gain for trading
or loss arisingor onwas designated torecognised
remeasurement eliminate or in significantly
profit or loss.reduce
a measurement or recognition inconsistency that would otherwise arise. Financial
 assets
Unquotedat fair value
trade through profit
receivables andor other
loss were stated atwith
receivables fair value
fixed at or each reporting
determinable
date with any
payments weregain or loss arising
classified as loanson remeasurement
and receivablesrecognised in profit or
financial assets, loss.
measured at
amortised cost using the effective interest method, less any impairment loss. Interest
 Unquoted
income wastrade receivables
recognised and other
by applying receivables
the effective interestwith
rate,fixed
exceptor for
determinable
short-term
payments
receivableswere
whenclassified as loans
the recognition and receivables
of interest financial assets, measured at
would be immaterial.
amortised cost using the effective interest method, less any impairment loss. Interest
income was recognised by applying the effective interest rate, except for short-term
receivables when the recognition of interest would be immaterial.
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.5 PROPERTY, PLANT AND EQUIPMENT
All items of property, plant and equipment are initially measured at cost. Cost includes
3.5 PROPERTY,that
expenditure PLANT are AND EQUIPMENT
directly attributable to the acquisition of the asset and other costs
directly attributable to bringing the asset to working condition for its intended use.
All items of property, plant and equipment are initially measured at cost. Cost includes
expenditure that
Subsequent are directly
to initial attributable
recognition, to theplant
all property, acquisition of the asset
and equipment, other and other
than costs
freehold
directly
land andattributable
buildings,to bringing
are statedthe assetless
at cost to working condition
accumulated for its intended
depreciation and any use.impairment
losses.
Subsequent to initial recognition, all property, plant and equipment, other than freehold
land and buildings,
Subsequent costs are areincluded
stated atin cost less accumulated
the assets’ depreciation
carrying amount and any
or recognised asimpairment
a separate
losses.
asset, as appropriate, only when the cost is incurred and it is probable that the future
economic benefits associated with the asset will flow to the Group and the cost of the asset
Subsequent
can be measuredcosts reliably.
are included in the assets’
The carrying amount carrying
of partsamount
that areor replaced
recognised as a separate
is derecognised.
asset,
The as appropriate,
costs of the day-to-dayonly when the of
servicing cost is incurred
property, plant and
and itequipment
is probable arethat the future
recognised in
economic benefits
profit or loss as incurred.associated with the asset will flow to the Group and the cost of the asset
can be measured reliably. The carrying amount of parts that are replaced is derecognised.
The costs of on
Depreciation theother
day-to-day
property,servicing
plant andof property,
equipmentplant and equipment
is charged are
to profit or recognised
loss (unless it in
is
profit or loss as incurred.
included in the carrying amount of another asset) on the straight-line method to write off the
depreciable amount of the assets over their estimated useful lives. Depreciation of an asset
Depreciation
does not cease on when
other property,
the asset plant and equipment
becomes is charged
idle or is retired to profit
from active useor unless
loss (unless it is
the asset
included
is in the carrying
fully depreciated. The amount
principalofannual
another asset)
rates used onfor
thethis
straight-line method to write off the
purpose are:-
depreciable amount of the assets over their estimated useful lives. Depreciation of an asset
does not cease
Leasehold building when the asset becomes idle or is retired Over thefrom active
lease termuse unless
of (71 – 96the asset
years)
is fully depreciated.
Computer equipment The principal annual rates used 10% for this purpose are:-
- 20%
Electrical fixtures and fittings 20%
Leasehold
Furniture and building
fittings Over
10% -the20%lease term of (71 – 96 years)
Computer
Motor vehiclesequipment 10%
20% - 20%
Electrical fixtures and fittings
Office equipment 20%
10% - 20%
Furniture
Plant andand fittings
Machinery 10% - 20%
20%
Motor vehicles
Renovation 20% - 20%
10%
Office equipment
Signboard 10%
20% - 20%
Plant and Machinery
Tools and equipment 20%
20%
Renovation 10% - 20%
Signboard 20%
Tools and equipment 20%
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.5 PROPERTY, PLANT AND EQUIPMENT (CONT’D)
The depreciation method, useful lives and residual values are reviewed, and adjusted if
3.5 appropriate,
PROPERTY,atPLANTthe endANDof each reporting(CONT’D)
EQUIPMENT period to ensure that the amounts, method and
periods of depreciation are consistent with previous estimates and the expected pattern of
The depreciation
consumption method,
of the useful lives
future economic and residual
benefits embodied values areitems
in the reviewed,
of the and adjusted
property, plantif
appropriate, at the
and equipment. Anyend of each
changes arereporting
accountedperiod
for astoa ensure
changethat the amounts, method and
in estimate.
periods of depreciation are consistent with previous estimates and the expected pattern of
consumption of theparts
When significant futureof economic
an item benefits embodied
of equipment havein different
the itemsuseful
of the lives,
property,
theyplant
are
and equipment.
accounted for asAny changes
separate are(major
items accounted for as a change
components) in estimate.
of property, plant and equipment.
When
An itemsignificant
of property,parts
plantofandanequipment
item of equipment have upon
is derecognised different useful
disposal or lives,
when no they are
future
accountedbenefits
economic for as separate items from
are expected (major
itscomponents)
use. Any gain ofor
property, plantfrom
loss arising and derecognition
equipment. of
the asset, being the difference between the net disposal proceeds and the carrying amount,
Anrecognised
is item of property,
in profitplant and equipment is derecognised upon disposal or when no future
or loss.
economic benefits are expected from its use. Any gain or loss arising from derecognition of
3.6 the asset, beingPROPERTIES
INVESTMENT the difference between the net disposal proceeds and the carrying amount,
is recognised in profit or loss.
Investment properties are properties which are owned or right-to-use asset held to earn
3.6 INVESTMENT
rental income PROPERTIES
or for capital appreciation or for both, but not for sale in the ordinary
course of business, use in the production or supply of goods or services or for
Investment properties
administrative purposes. are properties which are owned or right-to-use asset held to earn
rental income or for capital appreciation or for both, but not for sale in the ordinary
course of business,
Investment properties usewhich in are
the owned
production or supply
are initially of goods
measured or services
at cost. or for
Cost includes
administrative purposes.
expenditure that is directly attributable to the acquisition of the investment property. The
right-of-use asset held under a lease contract that meets the definition of investment
Investment
property propertiesinitially
is measured which similarly
are owned are initially
as other measured
right-of-use assets.at cost. Cost includes
expenditure that is directly attributable to the acquisition of the investment property. The
right-of-use asset
Subsequent held under
to initial a leaseinvestment
recognition, contract that meets the
properties aredefinition
stated of at investment
cost less
property is measured
accumulated initially
depreciation andsimilarly as other
impairment right-of-use
losses, if any. assets.
Subsequent to initial are

Investment properties recognition, investment
derecognised when theyproperties are stated
have either at cost ofless
been disposed or
accumulated
when depreciation
the investment and impairment
property losses,
is permanently if any. from use and no future benefit
withdrawn
is expected from its disposal.
Investment properties are derecognised when they have either been disposed of or
when
On thethe investment of
derecognition property is permanently
an investment withdrawn
property, from use
the difference and no
between thefuture benefit
net disposal
is expected
proceeds from
and theits disposal.
carrying amount is recognised in profit or loss.
On the derecognition
Transfers are made tooforanfrom
investment property,
investment the only
property difference between
when there is athe net disposal
change in use.
proceeds
All anddothe
transfers notcarrying
changeamount is recognised
the carrying amount ofinthe
profit or loss.reclassified.
property
Transfers are made to or from investment property only when there is a change in use.
All transfers do not change the carrying amount of the property reclassified.
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MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.7 LEASES
The Group assesses whether a contract is or contains a lease, at the inception of the
3.7 LEASES The Group recognises a right-of-use asset and corresponding lease liability with
contract.
respect to all lease arrangements in which it is the lessee, except for low-value assets
The short-term
and Group assesses
leaseswhether
with 12 amonthscontract or is or contains
less. For thesea leases,
lease, at thethe inception
Group of the
recognises
contract.
the leaseThe Group as
payments recognises
an operatinga right-of-use
expense asset and corresponding
on a straight-line methodlease over liability
the term with
of
respect
the leaseto unless
all lease arrangements
another systematic in basis
which isit more
is the representative
lessee, exceptofforthe low-value
time pattern assets in
and short-term
which economicleasesbenefits with
from 12themonths
leasedorassets less. For these leases, the Group recognises
are consumed.
the lease payments as an operating expense on a straight-line method over the term of
the lease
The Groupunless another systematic
recognises a right-of-use basis assetis more andrepresentative of the time
a lease liability at the patternleasein
which economic benefits
commencement date. The from the leased assets
right-of-use assets are andconsumed.
the associated lease liabilities are
presented as a separate line item in the statements of financial position.
The Group recognises a right-of-use asset and a lease liability at the lease
commencement
The right-of-use asset date. isThe right-of-use
initially measured assets
at cost.andCosttheincludes
associated lease amount
the initial liabilitiesof are
the
presented as a lease
corresponding separate line item
liability in thefor
adjusted statements
any lease of financial
payments position.
made at or before the
commencement date, plus any initial direct costs incurred, less any incentives received.
The right-of-use asset is initially measured at cost. Cost includes the initial amount of the
corresponding
The right-of-uselease assetliability adjusted for
is subsequently any lease
measured payments
at cost made at ordepreciation
less accumulated before the
commencement date, plus any initial direct costs incurred,
and any impairment losses, and adjusted for any remeasurement of the lease liability.less any incentives received.
The depreciation starts from the commencement date of the lease. If the lease transfers
The right-of-use
ownership of theasset is subsequently
underlying asset to the measured
Group at orcost
the less
cost accumulated
of the right-of-use depreciation
asset
and any impairment losses, and adjusted for any remeasurement
reflects that the Group expects to exercise a purchase option, the related right-of-use of the lease liability.
The
assetdepreciation
is depreciated starts from
over thethe commencement
useful date of theasset.
life of the underlying lease.Otherwise,
If the leasethe transfers
Group
ownership
depreciatesofthethe underlyingasset
right-of-use asset to to
thethe Group
earlier of theor end
the ofcost
theofuseful
the right-of-use asset
life of the right-of-
reflects
use thatorthe
asset theGroup
end ofexpects
the lease to exercise
term. Thea estimated
purchase option, the related
useful lives right-of-use
of the right-of-use
asset isare
assets depreciated
determinedover on thethesame
useful life as
basis of thethat underlying
of equipment. asset. Otherwise, the Group
depreciates the right-of-use asset to the earlier of the end of the useful life of the right-of-
use lease
The asset liability
or the is end of the
initially lease term.
measured at the The estimated
present valueuseful lives of
of the lease the right-of-use
payments that are
assets are determined on the same basis as that of equipment.
not paid at the commencement date, discounted by using the rate implicit in the lease. If
this rate cannot be readily determined, the Group uses its incremental borrowing rate.
The lease liability is initially measured at the present value of the lease payments that are
not paid
The leaseatliability
the commencement
is subsequently date, discounted
measured by using cost
at amortised the rate
usingimplicit in the lease.
the effective interest If
this rate cannot
method. be readily determined,
It is remeasured when there the is aGroup
change usesin its
theincremental
future lease borrowing
payments rate.(other
than lease modification that is not accounted for as a separate lease) with the
corresponding
The lease liabilityadjustment is mademeasured
is subsequently to the carrying amountcost
at amortised of the right-of-use
using the effective asset or is
interest
recognised
method. It is in remeasured
profit or loss if the carrying
when there isamount a change hasinbeen
the reduced
future leaseto zero.payments (other
than lease modification that is not accounted for as a separate lease) with the
corresponding adjustment is made to the carrying amount of the right-of-use asset or is
recognised in profit or loss if the carrying amount has been reduced to zero.
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MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.8 CONTRACT COSTS
(a) Incremental Costs of Obtaining A Contract
3.8 CONTRACT COSTS
The Group recognises incremental costs of obtaining contracts with customers as
(a) Incremental
an asset when Costs
the of Obtaining
Group expectsA Contract
to recover these costs. When the amortisation
period of the asset is one year or less, such costs are recognised as an expense
The Group recognises
immediately when incurred.incremental costs of obtaining contracts with customers as
an asset when the Group expects to recover these costs. When the amortisation
(b) period
Costs toof Fulfil
the asset is one year or less, such costs are recognised as an expense
A Contract
immediately when incurred.
The Group recognises costs that relate directly to a contract (or an anticipated
(b) Costs to Fulfil
contract) with Acustomer
Contract as an asset when the costs generate or enhance
resources of the Group, will be used in satisfying performance obligation in the
The Group
future and arerecognises
recovered. costs that relate directly to a contract (or an anticipated
contract) with customer as an asset when the costs generate or enhance
resources
The contract costsofare
theinitially
Group, will be used
measured in and
at cost satisfying performance
amortised obligation
on a systematic in that
basis the
future and are recovered.
is consistent with the pattern of revenue recognition to which the asset relates.
Theimpairment
An contract costs
lossare is initially
recognisedmeasured
in the atprofit
cost or
and amortised
loss when the on carrying
a systematic basis
amount of that
the
is consistent
contract cost with the pattern
exceeds of revenue
the expected recognition
revenue to whichcost
less expected the that
assetwill
relates.
be incurred. Any
impairment loss recovered shall be reversed to the extent of the carrying amount of the
An impairment
contract lossnot
cost does is recognised
exceed theinamount the profit
thatorwould
loss when the carrying
have been amount
recognised had ofthere
the
contract
been no cost exceeds
impairment therecognised
loss expected revenue less expected cost that will be incurred. Any
previously.
impairment loss recovered shall be reversed to the extent of the carrying amount of the
3.9 contract cost ASSET
CONTRACT does not ANDexceed
CONTRACTthe amount that would have been recognised had there
LIABILITY
been no impairment loss recognised previously.
A contract asset is recognised when the Group’s right to consideration is conditional on
3.9 CONTRACT
something otherASSET thanAND the CONTRACT
passage of LIABILITY
time. A contract asset is subject to impairment
requirements of MFRS 9.
A contract asset is recognised when the Group’s right to consideration is conditional on
something
A other than
contract liability the passage
is stated at cost and of represents
time. A contract asset isofsubject
the obligation to impairment
the Group to transfer
requirements
goods of MFRS
or services to a9. customer for which consideration has been received (or the
amount is due) from the customers.
A contract liability is stated at cost and represents the obligation of the Group to transfer
3.10 goods AND
CASH or services to a customer for which consideration has been received (or the
CASH EQUIVALENTS
amount is due) from the customers.
Cash and cash equivalents comprise cash in hand, bank balances, demand deposits and
3.10 CASH ANDhighly
short-term, CASHliquid
EQUIVALENTS
investments that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value with original maturity
Cash
periodsand
of cash
three equivalents
months or less. comprise
For thecash in hand,
purpose bank
of the balances,
statement of demand deposits
cash flows, and
cash and
short-term,
cash highlyare
equivalents liquid investments
presented net ofthat
bankare readily convertible to known amounts of cash
overdrafts.
and which are subject to an insignificant risk of changes in value with original maturity
periods of three months or less. For the purpose of the statement of cash flows, cash and
cash equivalents are presented net of bank overdrafts.
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Registration No
MN HOLDINGS BERHAD

MN
3. HOLDINGS BERHAD
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
NOTES 3.11
TO THE COMBINED ASSETS
NON-CURRENT FINANCIAL
HELDSTATEMENTS
FOR SALE AND(CONT’D)
DISCONTINUED OPERATIONS
3. SIGNIFICANT ACCOUNTING
Non-current POLICIES
assets (or disposal (CONT’D)assets and liabilities) that are expected to
group comprising
be recovered primarily through sale rather than through continuing use are classified as held
3.11 NON-CURRENT
for sale. Immediately ASSETSbeforeHELD FOR SALE
classification asAND
heldDISCONTINUED OPERATIONS
for sale, the non-current assets (or the
disposal group) are remeasured in accordance with the Group’s accounting policies. Upon
Non-current assets
classification as held(orfordisposal
sale, thegroup comprising
non-current assets
assets (or and liabilities)
non-current that are
assets expected
of the to
disposal
be recovered
group) are notprimarily through
depreciated andsale rather thanatthrough
are measured the lowercontinuing use are classified
of their previous as held
carrying amount
for sale.
and Immediately
fair value less costbefore classification
to sell. as held
Any differences are for sale, theinnon-current
recognised assets
profit or loss. (or the
In addition,
disposal group) are
equity accounting of remeasured in accordance
equity-accounted associateswith the Group’s
ceases accounting
once classified policies.
as held Upon
for sale or
classification as held for sale, the non-current assets (or non-current assets of the disposal
distribution.
group) are not depreciated and are measured at the lower of their previous carrying amount
and
A fair value less
discontinued cost tois sell.
operation Any differences
a component are recognised
of the Group’s businessinthatprofit or loss. In
represents addition,
a separate
equity accounting of equity-accounted associates ceases once classified
major line of business or geographical area of operations that has been disposed of as held for sale
or or
is
distribution.
held for sale, or is a subsidiary acquired exclusively with a view to resale. Classification as a
discontinued operation occurs upon disposal or when the operation meets the criteria to be
A discontinued
classified as held operation is aifcomponent
for sale, of theanGroup’s
earlier. When operationbusiness that represents
is classified a separate
as a discontinued
major line the
operation, of business
comparativeor geographical
statements of area of or
profit operations
loss and that
otherhas been disposed
comprehensive of or is
income is
held for sale,
restated or isoperation
as if the a subsidiary
had acquired exclusivelyfrom
been discontinued withthe
a view
start to
of resale. Classification
the comparative as a
period.
discontinued operation occurs upon disposal or when the operation meets the criteria to be
3.12 classified as held for sale, if earlier. When an operation is classified as a discontinued
IMPAIRMENT
operation, the comparative statements of profit or loss and other comprehensive income is
restated
(a) as if the operation
Impairment had beenAssets
of Financial discontinued from the start of the comparative period.
3.12 IMPAIRMENT
The Group recognises a loss allowance for expected credit losses on
investments in debt instruments that are measured at amortised cost or at fair
(a) Impairment
value throughof Financial Assets
other comprehensive income, trade receivables and contract
assets.
The Group recognises a loss allowance for expected credit losses on
investments
The expectedincreditdebt instruments that are
loss is estimated as measured at amortised
the difference between all cost or at fair
contractual
value through
cash flows that other
are duecomprehensive
to the Group inincome, tradewith
accordance receivables
the contract and
and contract
all the
assets.
cash flows that the Group expects to receive, discounted at the original effective
interest rate.
The expected credit loss is estimated as the difference between all contractual
cash flows that
The amount of are due to the
expected Group
credit in accordance
losses is updatedwith the contract
at each anddate
reporting all the
to
cash
reflectflows that the
changes Grouprisk
in credit expects
sincetoinitial
receive, discounted
recognition at the
of the original effective
respective financial
interest
instrument.rate. The Group always recognises lifetime expected credit losses for
trade receivables and contract assets using the simplified approach. The
The amount
expected of losses
credit expected creditfinancial
on these losses is updated
assets at each reporting
are estimated date to
using a provision
reflect changes
matrix based oninthe
credit risk since
Group’s initial
historical recognition
credit of the respective
loss experience financial
and are adjusted
instrument. The Group
for forward-looking always recognises
information (including lifetime
time expected
value of credit
money losses
wherefor
trade receivables and contract assets using the simplified approach. The
appropriate).
expected credit losses on these financial assets are estimated using a provision
matrix based on the Group’s historical credit loss experience and are adjusted
for forward-looking information (including time value of money where
appropriate).
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MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.12 IMPAIRMENT (CONT’D)
(a) Impairment of Financial Assets (Cont’d)
3.12 IMPAIRMENT (CONT’D)
For all other financial instruments, the Group recognises lifetime expected credit
(a) Impairment
losses whenofthere Financial
has been Assets (Cont’d) increase in credit risk since initial
a significant
recognition. However, if the credit risk on the financial instrument has not
For all other
increased financial instruments,
significantly since initialthe Group recognises
recognition, the Group lifetime expected
measures thecredit
loss
losses
allowance when therefinancial
for that has been a significant
instrument increaseequal
at an amount in credit risk since
to 12-month initial
expected
recognition.
credit losses.However, if the credit risk on the financial instrument has not
increased significantly since initial recognition, the Group measures the loss
allowance
The Groupfor that financial
recognises instrument gain
an impairment at anoramount
loss in equal
profit to or 12-month
loss for allexpected
financial
credit losses.with a corresponding adjustment to their carrying amount through a
instruments
loss allowance account, except for investments in debt instruments that are
The Groupat
measured recognises
fair value an impairment
through gain or loss in profit
other comprehensive income, or loss
for for all financial
which the loss
instruments
allowance is with a corresponding
recognised adjustment to their
in other comprehensive income carrying amount through
and accumulated in the a
loss value
fair allowance
reserve, account,
and does except notfor investments
reduce the carrying in debt instruments
amount that are
of the financial
measured
asset in theatstatement
fair valueof through
financial other comprehensive income, for which the loss
position.
allowance is recognised in other comprehensive income and accumulated in the
(b) fair value reserve,
Impairment and does Assets
of Non-Financial not reduce the carrying amount of the financial
asset in the statement of financial position.
The carrying values of assets, other than those to which MFRS
(b) Impairment
136 - Impairment of Non-Financial
of Assets does Assets not apply, are reviewed at the end of each
reporting period for impairment when an annual impairment assessment is
The carrying
compulsory values is ofan assets,
or there indicationotherthat thanthe assetsthose might to which MFRS
be impaired.
136 - Impairment
Impairment of Assets
is measured does not apply,
by comparing are reviewed
the carrying values atofthe theend of each
assets with
reporting
their period for
recoverable impairment
amounts. When when an annual
the carrying amount impairment
of an asset assessment
exceeds its is
compulsory amount,
recoverable or theretheis asset an indication that to
is written down theitsassets
recoverable mightamount
be impaired.
and an
Impairment loss
impairment is measured by comparing
shall be recognised. Thethe carrying values
recoverable amountofofthe assetsiswith
an asset the
their
higherrecoverable
of the assets' amounts.
fair value When lessthecosts
carrying
to sellamount
and itsofvalue-in-use,
an asset exceeds which its is
recoverablebyamount,
measured reference thetoasset is written
discounted downcash
future to itsflow
recoverable
using a pre-taxamountdiscount
and an
impairment
rate loss shall
that reflects be recognised.
current The recoverable
market assessments amount
of the time of an
value of asset
moneyis and the
higher
the of the
risks assets'
specific to fair
thevalue lessWhere
asset. costs to it sell
is notandpossible
its value-in-use,
to estimatewhichthe is
measured byamount
recoverable referenceof an to individual
discounted future
asset, the cash
Groupflowestimates
using a pre-tax discount
the recoverable
rate thatofreflects
amount current market
the cash-generating assessments
unit to which theof the belongs.
asset time value of money and
the risks specific to the asset. Where it is not possible to estimate the
recoverable
An impairment amount
loss isofrecognised
an individual asset,orthe
in profit loss.Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
When there is a change in the estimates used to determine the recoverable
An impairment
amount, loss is recognised
a subsequent increase ininthe profit or loss. amount of an asset is treated
recoverable
as a reversal of the previous impairment loss and is recognised to the extent of
When
the there is
carrying a change
amount of the in the
assetestimates
that would usedhave to determine
been determinedthe recoverable
(net of
amount, a subsequent
amortisation increase had
and depreciation) in thenorecoverable
impairmentamount loss been of anrecognised.
asset is treatedThe
as a reversal
reversal of the previous
is recognised in profitimpairment loss and is recognised to the extent of
or loss immediately.
the carrying amount of the asset that would have been determined (net of
amortisation and depreciation) had no impairment loss been recognised. The
reversal is recognised in profit or loss immediately.
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MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.13 PROVISIONS
Provisions are recognised when the Group has a present obligation (legal or
3.13 PROVISIONSas a result of past events, when it is probable that an outflow of resources
constructive)
embodying economic benefits will be required to settle the obligation, and when a reliable
Provisions
estimate of are the recognised
amount can when the Provisions
be made. Group hasare a reviewed
present obligation
at the end(legal
of each or
constructive)
reporting period as and
a result of past
adjusted events,the
to reflect when it is best
current probable that an
estimate. outflow
Where theof resources
effect of the
embodying
time value economic
of money benefits will be
is material, required
the to settle
provision is thethepresent
obligation, andofwhen
value a reliable
the estimated
estimate of required
expenditure the amount can the
to settle be obligation.
made. Provisions are rate
The discount reviewed at athe
shall be end rate
pre-tax of each
that
reportingcurrent
reflects periodmarket
and adjusted to reflect
assessments of the
thecurrent
time valuebestofestimate.
money and Where
the the
riskseffect of the
specific to
time value of
the liability. Themoney is material,
unwinding the provision
of the discount is the present
is recognised value
as interest of the inestimated
expense profit or
expenditure
loss. required to settle the obligation. The discount rate shall be a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to
3.14 the liability. The
EMPLOYEE unwinding of the discount is recognised as interest expense in profit or
BENEFITS
loss.
(a) Short-term Benefits
3.14 EMPLOYEE BENEFITS
Wages, salaries, paid annual leave, bonuses are measured on an undiscounted
(a) Short-term
basis Benefits
and are recognised in profit or loss in the period in which the associated
services are rendered by employees of the Group.
Wages, salaries, paid annual leave, bonuses are measured on an undiscounted
(b) basis and
Defined are recognised
Contribution Plansin profit or loss in the period in which the associated
services are rendered by employees of the Group.
The Group’s contributions to defined contribution plans are recognised in profit or
(b) Defined
loss in theContribution Plansthey relate. Once the contributions have been paid,
period to which
the Group has no further liability in respect of the defined contribution plans.
The Group’s contributions to defined contribution plans are recognised in profit or
loss in the period to which they relate. Once the contributions have been paid,
the Group has no further liability in respect of the defined contribution plans.
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MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.15 INCOME TAXES
(a) Current Tax
3.15 INCOME TAXES
Current tax assets and liabilities are expected amount of income tax recoverable
(a) Current Taxto the taxation authorities.
or payable
tax assets
Current taxes and liabilities
are measured usingaretaxexpected
rates and amount
tax lawsof that
income
have tax recoverable
been enacted
or payable to theenacted
substantively taxationat authorities.
the end of the reporting period and are recognised in
profit or loss except to the extent that the tax relates to items recognised outside
Current
profit or taxes are measured
loss (either using tax rates income
in other comprehensive and tax or laws that have
directly been enacted
in equity).
or substantively enacted at the end of the reporting period and are recognised in
(b) profit or loss
Deferred Taxexcept to the extent that the tax relates to items recognised outside
profit or loss (either in other comprehensive income or directly in equity).
Deferred tax is recognised using the liability method for all temporary differences
(b) Deferred
other thanTax those that arise from the initial recognition of an asset or liability in a
transaction which is not a business combination and at the time of the
Deferred
transaction, taxaffects
is recognised using the liability
neither accounting method
profit nor taxablefor profit.
all temporary differences
other than those that arise from the initial recognition of an asset or liability in a
transactiontaxwhich
Deferred assets is and
not liabilities
a business are combination
measured atand theattaxtheratestimethat
of are
the
transaction,
expected toaffects
apply neither
in the accounting
period when profit
thenor taxable
asset profit. or the liability is
is realised
settled, based on the tax rates that have been enacted or substantively enacted
Deferred
at the end tax assets
of the and period.
reporting liabilities are measured at the tax rates that are
expected to apply in the period when the asset is realised or the liability is
settled, based
Deferred on the tax
tax assets are rates that have
recognised for been enacted ortemporary
all deductible substantively enacted
differences,
at the end
unused taxoflosses
the reporting
and unusedperiod.tax credits to the extent that it is probable that
future taxable profits will be available against which the deductible temporary
Deferred
differences, taxunused
assets taxare losses
recognised for all deductible
and unused tax creditstemporary differences,
can be utilised. The
unused
carrying tax losses of
amounts anddeferred
unused tax creditsassets to arethereviewed
extent that at itthe
is probable
end of each that
future
reportingtaxable
periodprofits will be available
and reduced to the extentagainst
that which
it is nothe deductible
longer probable temporary
that the
differences, unusedwill
related tax benefits taxbelosses
realised. and unused tax credits can be utilised. The
carrying amounts of deferred tax assets are reviewed at the end of each
Current reporting period tax
and deferred and reduced
items are to the extent that
recognised in itcorrelation
is no longertoprobable that the
the underlying
related
transactions tax benefits
either in profitwill
or be realised.
loss, other comprehensive income or directly in equity.
Deferred tax arising from a business combination is adjusted against goodwill or negative
Current
goodwill. and deferred tax items are recognised in correlation to the underlying
transactions either in profit or loss, other comprehensive income or directly in equity.
Deferredtax
Current tax assets
arising andfrom liabilities
a business or combination
deferred taxisassets
adjusted andagainst goodwill
liabilities or negative
are offset when
goodwill.
there is a legally enforceable right to set off current tax assets against current tax
liabilities and when the deferred taxes relate to the same taxable entity (or on different tax
Current
entities buttax they
assets andtoliabilities
intend or deferred
settle current tax assetstax assets and liabilities
and liabilities on a netare offset
basis) when
and the
there is a legally
same taxation enforceable right to set off current tax assets against current tax
authority.
liabilities and when the deferred taxes relate to the same taxable entity (or on different tax
entities but they intend to settle current tax assets and liabilities on a net basis) and the
same taxation authority.
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MN HOLDINGS BERHAD
3.16 CONTINGENT LIABILITIES
A contingent liability is a possible obligation that arises from past events and whose
3.16 CONTINGENT
existence will onlyLIABILITIES
be confirmed by the occurrence of one or more uncertain future events
not wholly within the control of the Group. It can also be a present obligation arising from
A contingent
past events that liability
is notisrecognised
a possiblebecause
obligation
it isthat arises from
not probable thatpast events ofand
an outflow whose
economic
existence will
resources will only be confirmed
be required or the by the occurrence
amount of obligation of one
cannot or more uncertainreliably.
be measured future events
not wholly within the control of the Group. It can also be a present obligation arising from
past events that
A contingent is notisrecognised
liability because
not recognised butit is
is not probable
disclosed in that
the an outflow
notes of economic
to the financial
resources
statements, willunless
be required or the amount
the probability of obligation
of outflow cannot benefits
of economic be measured reliably.
is remote. When a
change in the probability of an outflow occurs so that the outflow is probable, it will then
A
be contingent
recognised liability is not recognised but is disclosed in the notes to the financial
as a provision.
statements, unless the probability of outflow of economic benefits is remote. When a
3.17 change
OPERATING in the SEGMENTS
probability of an outflow occurs so that the outflow is probable, it will then
be recognised as a provision.
An operating segment is a component of the Group that engages in business activities
3.17 OPERATING
from which it maySEGMENTS
earn revenues and incur expenses, including revenues and expenses
that relate to transactions with any of the Group’s other components. An operating
An operating
segment’s segment
operating is a component
results are reviewed of regularly
the Group by that engages
the chief in business
operating decisionactivities
maker
from
to whichdecisions
make it may earn aboutrevenues and incur
resources to beexpenses,
allocated including revenuesand
to the segment andassess
expenses its
that relate to and
performance, transactions with anyfinancial
for which discrete of the information
Group’s other components. An operating
is available.
segment’s operating results are reviewed regularly by the chief operating decision maker
3.18 to make decisions
EARNINGS about resources
PER ORDINARY SHARE to be allocated to the segment and assess its
performance, and for which discrete financial information is available.
Basic earnings per ordinary share is calculated by dividing the consolidated profit or loss
3.18 EARNINGS
attributable to PER ORDINARY
ordinary SHAREof the Company by the weighted average number of
shareholders
ordinary shares outstanding during the reporting period, adjusted for own shares held.
Basic earnings per ordinary share is calculated by dividing the consolidated profit or loss
attributable
Diluted to ordinary
earnings shareholders
per ordinary share isof determined
the Company by by the weighted
adjusting average number
the consolidated of
profit or
ordinary
loss shares outstanding
attributable to ordinaryduring the reporting
shareholders of the period,
Companyadjusted andfortheown shares held.
weighted average
number of ordinary shares outstanding, adjusted for the effects of all dilutive potential
Diluted earnings
ordinary shares. per ordinary share is determined by adjusting the consolidated profit or
loss attributable to ordinary shareholders of the Company and the weighted average
number of ordinary shares outstanding, adjusted for the effects of all dilutive potential
ordinary shares.
Page 40
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337
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.19 BORROWING COSTS
Borrowing costs that are not directly attributable to the acquisition, construction or production
3.19 BORROWING
of COSTS
a qualifying asset are recognised in profit or loss using the effective interest method.
Borrowing costs that areare not directly

directly attributable
attributable to the
to the acquisition,
acquisition, construction
construction or production
or production of
of qualifying
a a qualifying asset
asset arecapitalised
are recognised asinpart
profit
of or
theloss using
cost the effective
of those assets, interest
until such method.
time as the
assets are ready for their intended use or sale. The capitalisation of borrowing costs is
Borrowing
suspendedcosts thatextended
during are directly attributable
periods to theactive
in which acquisition, construction
development or production
is interrupted. of
The
a qualifying asset
capitalisation are capitalised
rate used to determineas the
partamount
of the cost of those costs
of borrowing assets, until such
eligible time as the
for capitalisation
assets are ready
is the weighted for their
average intended
of the use costs
borrowing or sale. The capitalisation
applicable to borrowings of that
borrowing costs is
are outstanding
suspended during year/period,
during the financial extended periods in which
other than activemade
borrowings development
specificallyisfor
interrupted.
the purpose The
of
capitalisation
financing rate used
a specific to determine theinamount
project-in-progress, which caseof borrowing
the actualcosts eligiblecosts
borrowing for capitalisation
incurred on
is theborrowings
that weighted average
less anyof the borrowing
investment incomecostsonapplicable
temporaryto borrowings
investment ofthat
thatare outstanding
borrowings will
during
be the financial year/period, other than borrowings made specifically for the purpose of
capitalised.
financing a specific project-in-progress, in which case the actual borrowing costs incurred on
thatother
All borrowings lesscosts
borrowing any investment income
are recognised on temporary
in profit or loss asinvestment
expenses ofin that borrowings
the period will
in which
be
theycapitalised.
are incurred.
3.20 All
FAIRother borrowing
VALUE costs are recognised in profit or loss as expenses in the period in which
MEASUREMENTS
they are incurred.
Fair value is the price that would be received to sell an asset or paid to transfer a liability
3.20 FAIR
in anVALUE
orderlyMEASUREMENTS
transaction between market participants at the measurement date,
regardless of whether that price is directly observable or estimated using a valuation
Fair value isThe
technique. the measurement
price that wouldassumes
be received
that tothe
selltransaction
an asset ortakes
paid to transfer
place a liability
either in the
in an orderly
principal markettransaction between ofmarket
or in the absence participants
a principal market,atin the
the measurement
most advantageous date,
regardless
market. Forofnon-financial
whether that pricethe
asset, is fair
directly
valueobservable
measurement or estimated
takes into using
account a valuation
a market
technique. The
participant’s measurement
ability to generate assumes
economicthat the transaction
benefits by using thetakes
assetplace
in itseither
highestin and
the
principal
best use market or in the
or by selling it to absence of a principal
another market participantmarket,
that in the use
would mostthe advantageous
asset in its
market. and
highest For best
non-financial
use. asset, the fair value measurement takes into account a market
participant’s ability to generate economic benefits by using the asset in its highest and
bestfinancial
For use or reporting
by sellingpurposes,
it to another market
the fair valueparticipant
measurementsthat would use theinto
are analysed asset
levelin1 its
to
highest
level and
3 as best use.
follows:-
For financial
Level 1: reporting
Inputs are purposes, the fair
quoted prices value measurements
(unadjusted) are analysed
in active markets into assets
for identical level 1 or
to
level 3 as follows:-
liability that the entity can access at the measurement date;
1:
Level 2: Inputs areare quoted
inputs, prices (unadjusted)
other than in active
quoted prices marketswithin
included for identical
level 1,assets or
that are
liability
observablethat for
thethe
entity canoraccess
asset ateither
liability, the measurement date; and
directly or indirectly;
2:
Level 3: are unobservable
Inputs are inputs, other than
inputsquoted
for theprices included
asset or liability.within level 1, that are
observable for the asset or liability, either directly or indirectly; and
The transfer of fair value between levels is determined as of the date of the event or
Level 3: in circumstances
change Inputs are unobservable
that causedinputs for the asset or liability.
the transfer.
The transfer of fair value between levels is determined as of the date of the event or
change in circumstances that caused the transfer.
Page 41
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338
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.21 REVENUE FROM CONTRACTS WITH CUSTOMERS
Revenue is recognised by reference to each distinct performance obligation in the
3.21 REVENUE
contract withFROM CONTRACTS
customer WITH CUSTOMERS
and is measured at the consideration specified in the contract of
which the Group expects to be entitled in exchange for transferring promised goods or
Revenuetoisa customer,
services recognisednetbyof reference to eachtax,
sales and service distinct performance
returns, rebates andobligation
discounts.in the
contract with customer and is measured at the consideration specified in the contract of
which the Group
The Group expects
recognises to be when
revenue entitled
(orinas)
exchange forcontrol
it transfers transferring
over apromised goods
product or or
service
services to a customer,
to customer. An asset net of sales and
is transferred service
when (or tax,
as) returns, rebates
the customer and discounts.
obtains control of that
asset.
The Group recognises revenue when (or as) it transfers control over a product or service
to
The customer. An assetcontrol
Group transfers is transferred
of a good when (or as) at
or service thea customer obtains
point in time control
unless one ofof that
the
asset. over time criteria is met:-
following
The Group transferssimultaneously

The customer control of a good or service
receives at a pointthe
and consumes in benefits
time unless one as
provided of the
following overperforms.
Group time criteria is met:-
 The Group’s
customerperformance
simultaneously receives
creates and consumes
or enhances thethat
an asset benefits providedcontrols
the customer as the
Group performs.
as the asset is created or enhanced.
 The Group’s
The Group’s performance
performance does
createsnotorcreate
enhances an asset
an asset thatalternative
with an the customer
use controls
and the
as the asset
Group has anisenforceable
created or enhanced.
right to payment for performance completed to date.

(a) The Group’s
Sales of Goodsperformance does not create an asset with an alternative use and the
Group has an enforceable right to payment for performance completed to date.
Revenue from sale of goods is recognised when the Group has transferred
(a) Sales
controlofofGoods
the goods to the customer, being when the goods have been delivered
to the customer and upon its acceptance. Following delivery, the customer has
Revenue fromover
full discretion salethe
of manner
goods isofrecognised
distribution when the Group
and price has goods,
to sell the transferred
and
control of the goods to the customer, being when the goods
bears the risks of obsolescence and loss in relation to the goods. have been delivered
to the customer and upon its acceptance. Following delivery, the customer has
fullreceivable
A discretionisover the manner
recognised whenofthe
distribution
goods areand price toassell
delivered thisthe goods,
is the and
point in
bears
time thatthe the
risks of obsolescence
consideration and loss in relation
is unconditional becausetoonly
the goods.
the passage of time is
required before the payment is due.
A receivable is recognised when the goods are delivered as this is the point in
time that the consideration is unconditional because only the passage of time is
required before the payment is due.
Page 42
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339
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
3.21 REVENUE FROM CONTRACTS WITH CUSTOMERS (CONT’D)
(b) Construction Services
3.21 REVENUE FROM CONTRACTS WITH CUSTOMERS (CONT’D)
Revenue from construction services is recognised over time in the period in
(b) Construction Services
which the services are rendered using the input method, determined based the
proportion of construction costs incurred for work performed to date over the
Revenue from
estimated total construction services
construction costs. is recognised
Transaction price over time in based
is computed the period
on the in
which the services
price specified arecontract
in the rendered and using the input
adjusted method,
for any determined
variable basedsuch
consideration the
proportion
as incentivesof and
construction
penalties.costs
Past incurred
experiencefor iswork
usedperformed
to estimatetoand date over the
provide for
estimated total construction costs. Transaction price is
the variable consideration, using expected value method and revenue iscomputed based ononly
the
price specified
recognised in the
to the contract
extent that itand adjusted
is highly for anythat
probable variable consideration
a significant reversalsuch
will
as
notincentives
occur. and penalties. Past experience is used to estimate and provide for
the variable consideration, using expected value method and revenue is only
recognised
A receivabletoisthe extent that
recognised whenit isthe
highly probableservices
construction that a significant
are rendered reversal
as thiswill
is
not
the occur.
point in time that the consideration is unconditional because only the passage
of time is required before the payment is due. If the construction services
A receivable
rendered is recognised
exceed whenreceived,
the payment the construction services
a contract assetareis rendered
recognised. as this
If theis
the point in exceed
payments time thatthe
the construction
consideration services
is unconditional
rendered,because only theliability
a contract passage is
of time is required before the payment is due. If the construction services
recognised.
rendered exceed the payment received, a contract asset is recognised. If the
3.22 payments
REVENUE exceed SOURCES
FROM OTHER the construction
AND OTHERservices rendered, INCOME
OPERATING a contract liability is
recognised.
(a) Interest Income
3.22 REVENUE FROM OTHER SOURCES AND OTHER OPERATING INCOME
Interest income is recognised on an accrual basis using the effective interest
(a) Interest
method. Income
(b) Interest income is recognised on an accrual basis using the effective interest
Rental Income
method.
Rental income is accounted for on a straight-line method over the lease term.
(b) Rental Income
Rental income is accounted for on a straight-line method over the lease term.
Page 43
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340
Registration No
13. ACCOUNTANTS’
MN HOLDINGS BERHAD REPORT (Cont’d) 13. ACCOUNTANTS’ REPORT (Cont’d)
MN HOLDINGS
NOTES TO THEBERHAD
COMBINED FINANCIAL STATEMENTS (CONT’D)
NOTES
4. TO THE COMBINED
PROPERTY, FINANCIAL
PLANT AND STATEMENTS (CONT’D)
EQUIPMENT
4. PROPERTY, PLANT AND EQUIPMENT
Computer Electrical fixtures Furniture Motor Office Plant and Tools and
equipment and fittings and fittings vehicles equipment machinery Renovation Signboard equipment Total
Audited Computer
RM fixtures
ElectricalRM Furniture
RM Motor
RM Office
RM PlantRMand RM RM ToolsRMand RM
Audited
Carrying amount at RM RM RM RM RM RM RM RM RM RM
1 July 2017,
Carrying
as previously at
amountreported 12,172 690 11,925 1,413,426 5,701 3,836,823 24,846 577 - 5,306,160
1Initial 2017,
July application of MFRS 16 - - - (1,225,451) - (3,633,308) - - - (4,858,759)
as previously reported 12,172 690 11,925 1,413,426 5,701 3,836,823 24,846 577 - 5,306,160
Initial
1 Julyapplication of MFRS 16
2017, as restated -
12,172 -690 -
11,925 (1,225,451)
187,975 -
5,701 (3,633,308)
203,515 -
24,846 -577 -- (4,858,759)
447,401
Additions 3,588 - 460 57,000 - 245,000 - - 7,500 313,548
July 2017, as restated
1Reclassification 12,172
- 690
- 11,925
- 187,975
111,192 5,701
- 203,515
82,583 24,846
- 577
- -- 447,401
193,775
Additions
Disposal 3,588
- -- 460
- 57,000
(18,502) -- 245,000
- -- -- 7,500
- 313,548
(18,502)
Reclassification
Depreciation charges -
(4,595) -
(688) -
(3,997) 111,192
(51,055) -
(1,872) 82,583
(158,204) -
(4,680) -
(198) -
(750) 193,775
(226,039)
Disposal - - - (18,502) - - - - - (18,502)
Carrying amount
Depreciation at
charges (4,595) (688) (3,997) (51,055) (1,872) (158,204) (4,680) (198) (750) (226,039)
30 June 2018/
Carrying amount at
1 July 2018 11,165 2 8,388 286,610 3,829 372,894 20,166 379 6,750 710,183
30 June
Additions2018/ 21,388 12,833 8,678 231,101 16,020 1,200,607 - - - 1,490,627
July 2018
1Reclassification 11,165
- -2 8,388
- 286,610
- 3,829
- 372,894
133,152 20,166
- 379
- 6,750
- 710,183
133,152
Additions
Depreciation charges 21,388
(6,895) 12,833
(428) 8,678
(4,096) 231,101
(176,457) 16,020
(2,310) 1,200,607
(268,860) -
(4,680) -
(198) -
(1,500) 1,490,627
(465,424)
Reclassification - - - - - 133,152 - - - 133,152
Carrying amount
Depreciation at
charges (6,895) (428) (4,096) (176,457) (2,310) (268,860) (4,680) (198) (1,500) (465,424)
30 June 2019 25,658 12,407 12,970 341,254 17,539 1,437,793 15,486 181 5,250 1,868,538
Carrying amount at
30 June 2019 25,658 12,407 12,970 341,254 17,539 1,437,793 15,486 181 5,250 1,868,538
Page 44
341 Page 44
Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
MN HOLDINGS BERHAD BERHAD
MN
MN HOLDINGS
HOLDINGS BERHAD
NOTES TO THEBERHAD COMBINED FINANCIAL STATEMENTS (CONT’D)
NOTES
NOTES TO
TO THE
THE COMBINED
COMBINED FINANCIAL
FINANCIAL STATEMENTS
STATEMENTS (CONT’D)
(CONT’D)
NOTES
NOTES TO
TO THE
THE COMBINED
COMBINED FINANCIAL
4. PROPERTY, PLANT AND EQUIPMENT (CONT’D) (CONT’D)
4.
4. PROPERTY,
PROPERTY, PLANT
PLANT AND
AND EQUIPMENT
EQUIPMENT (CONT’D)
(CONT’D)
4.
4. PROPERTY,
PROPERTY, PLANT PLANT AND
AND EQUIPMENT
EQUIPMENT (CONT’D)
(CONT’D)
Computer
Computer
equipment Electrical
Electrical
and fixtures
fixtures
fittings Furniture
Furniture
and fittings Motor
Motor
vehicles Office
Office
equipment Plant
Plant and
and
machinery Renovation Signboard Tools
Tools and
and
equipment Total
Computer
Computer Electrical
Electrical fixtures
fixtures Furniture
Furniture Motor
Motor Office
Office Plant
Plant and
and Tools
Tools and
and
Audited equipment
equipment
RM and
and fittings
fittings
RM and
and fittings
fittings
RM vehicles
vehicles
RM equipment
equipment
RM machinery
machinery
RM Renovation
Renovation
RM Signboard
Signboard
RM equipment
equipment
RM Total
Total
RM
equipment
equipment and
and fittings
fittings and
and fittings
fittings vehicles
vehicles equipment
equipment machinery
machinery Renovation
Renovation Signboard
Signboard equipment
equipment Total
Total
Audited
Audited RM
RM RM
RM RM
RM RM
RM RM
RM RM
RM RM
RM RM
RM RM
RM RM
RM
Audited
Audited RM
RM RM
RM RM
RM RM
RM RM
RM RM
RM RM
RM RM
RM RM
RM RM
RM
Carrying amount at
Carrying
Carrying amount
amount
1 July 2019 at
at 25,658 12,407 12,970 341,254 17,539 1,437,793 15,486 181 5,250 1,868,538
Carrying
Carrying
11 July amount
amount at
2019 at 25,658 12,407 12,970 341,254 17,539 1,437,793 15,486 181 5,250 1,868,538
July
Additions
11 July 2019 25,658
8,757
25,658 12,407
15,835
12,407 12,970
26,891
12,970 341,254
134,800
341,254 17,539
14,467
17,539 1,437,793
174,500
1,437,793 15,486
120,639
15,486 181
1,100
181 5,250
5,250 - 1,868,538
496,989
1,868,538
July 2019
Additions
Additions
Disposal 2019 25,658
8,757
8,757
(1,147) 12,407
15,835
15,835 - 12,970
26,891
26,891 - 341,254
134,800
134,800 - 17,539
14,467
14,467 - 1,437,793
174,500
174,500 - 15,486
120,639
120,639- 181
1,100
1,100 - 5,250--- 1,868,538
496,989
496,989
(1,147)
Additions
Additions
Disposal 8,757
8,757
(1,147) 15,835
15,835 - 26,891
26,891 - 134,800
134,800 - 14,467
14,467 - 174,500
174,500 - 120,639
120,639
- 1,100
1,100
- - 496,989
496,989
(1,147)
Disposal
Depreciation charges
Disposal (1,147)
(8,348)
(1,147) (3,772) - -
(7,687) -
(124,884) (7,064)- -
(400,296) -
(16,829) -(197) (1,500)
--- (1,147)
(570,577)
(1,147)
Disposal
Depreciation
charges (1,147)
(8,348)
(8,348) (3,772)
(3,772)
-- (7,687)
(7,687)
-- (124,884)
(124,884)
-- (7,064)
(7,064)
-- (400,296)
(400,296)
-- --
(16,829)
(16,829)
--
(197)
(197) -
(1,500)
(1,500) (1,147)
(570,577)
(570,577)
Depreciation
charges (8,348)
(8,348) (3,772)
(3,772) (7,687)
(7,687) (124,884)
(124,884) (7,064)
(7,064) (400,296)
(400,296) (16,829)
(16,829) (197)
(197) (1,500)
(1,500) (570,577)
(570,577)
Carrying amount at
Carrying
Carrying
30 June amount
amount
2020/ at
at
Carrying
Carrying
30 amount
amount
2020/ atat
30
30 June
1 July
June 2020/
June2020
2020/ 24,920 24,470 32,174 351,170 24,942 1,211,997 119,296 1,084 3,750 1,793,803
30 June
July
1Additions
11 July 2020/
2020
2020 24,920
24,920
19,062 24,470
24,470 - 32,174
32,174
580 351,170
351,170
17,830 24,942
24,942
17,114 1,211,997
1,211,997
167,176 119,296
119,296
6,950 1,084
1,084 - 3,750
3,750
20,509 1,793,803
1,793,803
249,221
1 July
July 2020
Additions 2020 24,920
24,920
19,062 24,470
24,470 32,174
32,174
580 351,170
351,170
17,830 24,942
24,942
17,114 1,211,997
1,211,997
167,176 119,296
119,296
6,950 1,084
1,084 3,750
3,750
20,509 1,793,803
1,793,803
249,221
Additions
Reclassification
Additions 19,062
19,062 - --- 580
580 - 17,830
39,433
17,830 17,114
17,114 - 167,176
1,446,988
167,176 6,950
6,950 - --- 20,509
20,509 - 249,221
1,486,421
249,221
Additions
Reclassification
Reclassification
Disposal 19,062 --- ---- 580--- 17,830
39,433
39,433 (1) 17,114 --- 167,176
1,446,988
1,446,988 - 6,950
--- --
-- 20,509 --- 1,486,421
1,486,421
249,221(1)
Reclassification
Reclassification
Disposal - - -
- - - 39,433
39,433 (1) - - 1,446,988
1,446,988 -- 1,486,421
1,486,421(1)
Disposal
Write-off
Disposal - - - - -
(2,430) - (1) - - --- --- ---- ---- (1)
(2,430)
(1)
Disposal
Write-off
Write-off
Depreciation charges -
(9,574)
--
-
(5,734)
-- --
(2,430)
(2,430)
(8,380) - (1)
-
(144,648) (1) -
--
(7,986) -
--
(1,176,102) (27,508)
--
(220)
--
(5,602) (1)
(2,430)
(2,430)
(1,385,754)
Write-off
Write-off charges
Depreciation charges (9,574)-- --
(5,734) (2,430)
(2,430)
(8,380) --
(144,648) --
(7,986) --
(1,176,102)
---
-
(27,508)
--
(220)-
--
(5,602)- (2,430)
(2,430)
(1,385,754)
Depreciation
Depreciation charges (9,574)
(9,574) (5,734)
(5,734) (8,380)
(8,380) (144,648)
(144,648) (7,986)
(7,986) (1,176,102)
(1,176,102) (27,508)
(27,508) (220)
(220) (5,602)
(5,602) (1,385,754)
(1,385,754)
Depreciation
Carrying amount charges
at (9,574) (5,734) (8,380) (144,648) (7,986) (1,176,102) (27,508) (220) (5,602) (1,385,754)
Carrying
Carrying amount
30 Juneamount at
2021/ at
Carrying
Carrying
30 June amount
amount
2021/ at
at
30
130JulyJune
June 2021/
2021
2021/ 34,408 18,736 21,944 263,784 34,070 1,650,059 98,738 864 18,657 2,141,260
30 June
July
1Additions
11 July 2021/
2021
2021 34,408
34,408 - 18,736
18,736
1,460 21,944
21,944
1,920 263,784
263,784
51,400 34,070
34,070
4,801 1,650,059
1,650,059
200,844 98,738
98,738 - 864
864 - 18,657
18,657 - 2,141,260
2,141,260
260,425
1 July
July 2021
Additions 2021 34,408
34,408 18,736
18,736
1,460 21,944
21,944
1,920 263,784
263,784
51,400 34,070
34,070
4,801 1,650,059
1,650,059
200,844 98,738
98,738 864
864 18,657
18,657 2,141,260
2,141,260
260,425
Additions
Reclassification
Additions
--- 1,460
1,460 - 1,920
1,920 - 51,400
51,400 - 4,801
4,801 - 200,844
534,616
200,844
--- --- --- 260,425
534,616
260,425
Additions
Reclassification
Reclassification
--
-
(3,614) 1,460
-
-
(1,960) 1,920
-
-
(2,281) 51,400
-
-
(46,159) 4,801
-
-
(3,265) 200,844
534,616
534,616
(459,225)
--
(9,532)
-- --
(1,867) 260,425
534,616
534,616
(527,977)
Reclassification
Reclassification charges
Depreciation charges --
(3,614) --
(1,960) --
(2,281) --
(46,159) --
(3,265) 534,616
534,616
(459,225)
--
(9,532)-
--(74)
-(74)
--
(1,867)- 534,616
534,616
(527,977)
Depreciation
Depreciation charges (3,614)
(3,614) (1,960)
(1,960) (2,281)
(2,281) (46,159)
(46,159) (3,265)
(3,265) (459,225)
(459,225) (9,532)
(9,532) (74)
(74) (1,867)
(1,867) (527,977)
(527,977)
Depreciation
Carrying amount atcharges (3,614) (1,960) (2,281) (46,159) (3,265) (459,225) (9,532) (74) (1,867) (527,977)
Carrying
Carrying amount
amount
31 October at
2021at 30,794 18,236 21,583 269,025 35,606 1,926,294 89,206 790 16,790 2,408,324
Carrying
Carrying
31 amount
amount
October 2021 at
at 30,794 18,236 21,583 269,025 35,606 1,926,294 89,206 790 16,790 2,408,324
31
31 October 2021 30,794
30,794 18,236
18,236 21,583
21,583 269,025
269,025 35,606
35,606 1,926,294
1,926,294 89,206
89,206 790
790 16,790
16,790 2,408,324
2,408,324
31 October
October 2021
2021 30,794 18,236 21,583 269,025 35,606 1,926,294 89,206 790 16,790 2,408,324
Page 45
45
Page 45
Page
Page
Page 45
45
342
Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
NOTES
4. TO THE COMBINED
PROPERTY, FINANCIAL
PLANT AND STATEMENTS
EQUIPMENT (CONT’D) (CONT’D)
Computer (CONT’D)
Electrical fixtures Furniture Motor Office Plant and Tools and
Unaudited RM RM RM RM RM RM RM RM RM RM
Unaudited RM RM RM RM RM RM RM RM RM RM
Carrying amount at
1 July 2020 24,920 24,470 32,174 351,170 24,942 1,211,997 119,296 1,084 3,750 1,793,803
Carrying amount at
Additions 5,360 - - 2,000 1,200 139,400 1,000 - 20,509 169,469
1 July 2020 24,920 24,470 32,174 351,170 24,942 1,211,997 119,296 1,084 3,750 1,793,803
Reclassification - - - 23,800 - 889,822 - - - 913,622
Additions 5,360 - - 2,000 1,200 139,400 1,000 - 20,509 169,469
Write-off - - (2,430) - - - - - - (2,430)
Reclassification - - - 23,800 - 889,822 - - - 913,622
Depreciation charges (3,089) (1,912) (2,783) (43,526) (2,306) (322,406) (9,004) (74) (1,867) (386,967)
Write-off - - (2,430) - - - - - - (2,430)
Carrying amount at (3,089) (1,912) (2,783) (43,526) (2,306) (322,406) (9,004) (74) (1,867) (386,967)
31 October 2020 27,191 22,558 26,961 333,444 23,836 1,918,813 111,292 1,010 22,392 2,487,497
Carrying amount at
31 October 2020 27,191 22,558 26,961 333,444 23,836 1,918,813 111,292 1,010 22,392 2,487,497
Page 46
343 Page 46
Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
NOTES
4. TO THE COMBINED
PROPERTY, FINANCIAL
EQUIPMENT (CONT’D) (CONT’D)

Computer (CONT’D)
Electrical fixtures Furniture Motor Office Plant and Tools and
Audited Computer
RM Electrical
RMfixtures Furniture
RM Motor
RM Office
RM Plant
RMand RM RM Tools
RMand RM
Audited
At 30 June 2018 RM RM RM RM RM RM RM RM RM RM
At cost 40,214 20,700 40,205 1,115,210 28,247 2,239,199 46,800 990 7,500 3,539,065
At 30 June 2018
Accumulated depreciation (29,049) (20,698) (31,817) (828,600) (24,418) (1,866,305) (26,634) (611) (750) (2,828,882)
At cost 40,214 20,700 40,205 1,115,210 28,247 2,239,199 46,800 990 7,500 3,539,065
Carrying amount
Accumulated depreciation 11,165
(29,049) 2
(20,698) 8,388
(31,817) 286,610
(828,600) 3,829
(24,418) 372,894
(1,866,305) 20,166
(26,634) 379
(611) 6,750
(750) 710,183
(2,828,882)
Carrying amount 11,165 2 8,388 286,610 3,829 372,894 20,166 379 6,750 710,183
At 30 June 2019
At cost 61,602 33,533 48,883 1,346,311 44,267 3,833,824 46,800 990 7,500 5,423,710
At 30 June 2019
Accumulated depreciation (35,944) (21,126) (35,913) (1,005,057) (26,728) (2,396,031) (31,314) (809) (2,250) (3,555,172)
At cost 61,602 33,533 48,883 1,346,311 44,267 3,833,824 46,800 990 7,500 5,423,710
Carrying amount
(35,944) 12,407
(21,126) 12,970
(35,913) 341,254
(1,005,057) 17,539
(26,728) 1,437,793
(2,396,031) 15,486
(31,314) 181
(809) 5,250
(2,250) 1,868,538
(3,555,172)
Carrying amount 25,658 12,407 12,970 341,254 17,539 1,437,793 15,486 181 5,250 1,868,538
At 30 June 2020
At cost 68,759 49,368 75,774 1,481,111 58,734 4,008,324 167,439 2,090 7,500 5,919,099
At 30 June 2020
Accumulated depreciation (43,839) (24,898) (43,600) (1,129,941) (33,792) (2,796,327) (48,143) (1,006) (3,750) (4,125,296)
At cost 68,759 49,368 75,774 1,481,111 58,734 4,008,324 167,439 2,090 7,500 5,919,099
Carrying amount
(43,839) 24,470
(24,898) 32,174
(43,600) 351,170
(1,129,941) 24,942
(33,792) 1,211,997
(2,796,327) 119,296
(48,143) 1,084
(1,006) 3,750
(3,750) 1,793,803
(4,125,296)
Carrying amount 24,920 24,470 32,174 351,170 24,942 1,211,997 119,296 1,084 3,750 1,793,803
At 30 June 2021
At cost 87,821 49,368 73,654 1,619,641 75,848 8,080,461 174,389 2,090 28,009 10,191,281
At 30 June 2021
Accumulated depreciation (53,413) (30,632) (51,710) (1,355,857) (41,778) (6,430,402) (75,651) (1,226) (9,352) (8,050,021)
At cost 87,821 49,368 73,654 1,619,641 75,848 8,080,461 174,389 2,090 28,009 10,191,281
Carrying amount
(53,413) 18,736
(30,632) 21,944
(51,710) 263,784
(1,355,857) 34,070
(41,778) 1,650,059
(6,430,402) 98,738
(75,651) 864
(1,226) 18,657
(9,352) 2,141,260
(8,050,021)
Carrying amount 34,408 18,736 21,944 263,784 34,070 1,650,059 98,738 864 18,657 2,141,260
Page 47
344 Page 47
Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
NOTES
4. TO THE COMBINED
PROPERTY, FINANCIAL
EQUIPMENT (CONT’D)(CONT’D)
Computer Electrical (CONT’D)
fixtures Furniture Motor Office Plant and Tools and
Audited Computer
RM ElectricalRMfixtures Furniture
RM Motor
RM Office
RM PlantRMand RM RM ToolsRMand RM
Audited
At 31 October 2021 RM RM RM RM RM RM RM RM RM RM
At cost 87,821 50,828 75,574 1,671,041 80,649 9,515,035 174,389 2,090 28,009 11,685,436
AtAccumulated 2021
31 Octoberdepreciation (57,027) (32,592) (53,991) (1,402,016) (45,043) (7,588,741) (85,183) (1,300) (11,219) (9,277,112)
At cost 87,821 50,828 75,574 1,671,041 80,649 9,515,035 174,389 2,090 28,009 11,685,436
Carrying amount
(57,027) 18,236
(32,592) 21,583
(53,991) 269,025
(1,402,016) 35,606
(45,043) 1,926,294
(7,588,741) 89,206
(85,183) 790
(1,300) 16,790
(11,219) 2,408,324
(9,277,112)
Carrying amount 30,794 18,236 21,583 269,025 35,606 1,926,294 89,206 790 16,790 2,408,324
Unaudited Computer
RM ElectricalRMfixtures Furniture
RM Motor
RM Office
RM PlantRMand RM RM Tools
RMand RM
Unaudited
At 31 October 2020 RM RM RM RM RM RM RM RM RM RM
At cost 74,119 49,368 73,074 1,585,111 59,934 6,917,687 168,439 2,090 28,009 8,957,831
AtAccumulated 2020
31 Octoberdepreciation (46,928) (26,810) (46,113) (1,251,667) (36,098) (4,998,874) (57,147) (1,080) (5,617) (6,470,334)
At cost 74,119 49,368 73,074 1,585,111 59,934 6,917,687 168,439 2,090 28,009 8,957,831
Carrying amount
(46,928) 22,558
(26,810) 26,961
(46,113) 333,444
(1,251,667) 23,836
(36,098) 1,918,813
(4,998,874) 111,292
(57,147) 1,010
(1,080) 22,392
(5,617) 2,487,497
(6,470,334)
Carrying amount 27,191 22,558 26,961 333,444 23,836 1,918,813 111,292 1,010 22,392 2,487,497
Page 48
345 Page 48
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
5. INVESTMENT PROPERTIES
5. INVESTMENT PROPERTIES
RM RM RM RM RM RM
Cost:-
At 1 July/30 June 740,000 740,000 740,000 740,000 740,000 740,000
RM RM RM RM RM RM
Cost:-
Accumulated depreciation:-
At 1 July/30 June 740,000 740,000 740,000 740,000 740,000 740,000
At 1 July 53,567 68,367 83,167 97,967 97,967 112,767
Accumulated depreciation:-
Depreciation during the financial year 14,800 14,800 14,800 14,800 4,933 4,933
At 130July
June/31 October 53,567
68,367 68,367
83,167 83,167
97,967 97,967
112,767 97,967
102,900 112,767
117,700
Depreciation during the financial year 14,800 14,800 14,800 14,800 4,933 4,933
671,633 656,833 642,033 627,233 637,100 622,300
At 30 June/31 October 68,367 83,167 97,967 112,767 102,900 117,700
Fair value 1,077,057 895,901 882,726 1,245,039 1,245,039 1,245,039
671,633 656,833 642,033 627,233 637,100 622,300
Fair value 1,077,057 895,901 882,726 1,245,039 1,245,039 1,245,039

(a) The freehold buildings are charged to a licensed financial institution as security for banking
facilities granted to the Group as disclosed in Note 15 to the financial statements.
(a)
(b) freehold
The fair buildings
values are charged
of the investment to a licensed
properties financial
are within levelinstitution as value
3 of the fair security for banking
hierarchy and
facilities
are granted
arrived at bytoreference
the Grouptoasmarket
disclosed in Noteof15
evidence to the financial
transaction pricesstatements.
for similar properties
and are performed by registered valuers having appropriate recognised professional
(b) The fair values
qualification andofrecent
the investment
experienceproperties are within
in the locations andlevel 3 of the
category fair value hierarchy
of properties and
being valued.
are arrived
The at by reference
most significant input to
intomarket evidence approach
this valuation of transaction prices
is the priceforper
similar
square properties
foot of
and are performed
comparable properties.byAdjustments
registered are
valuers havingforappropriate
then made differences in recognised professional
location, size, facilities
qualification
available, and recent
market experience
conditions and otherin the locations
factors andtocategory
in order arrive at of properties
a common being valued.
basis.
The most significant input into this valuation approach is the price per square foot of
comparable properties. Adjustments are then made for differences in location, size, facilities
available, market conditions and other factors in order to arrive at a common basis.
Page 49
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346
Registration No
13. ACCOUNTANTS’
MN HOLDINGS BERHADREPORT (Cont’d) 13. ACCOUNTANTS’ REPORT (Cont’d)
MN HOLDINGS
NOTES BERHAD
TO THE COMBINED FINANCIAL STATEMENTS (CONT’D)
NOTES
6. TO THE COMBINED
RIGHT-OF-USE FINANCIAL STATEMENTS (CONT’D)
ASSETS
6. RIGHT-OF-USE ASSETS Leasehold Motor Plant and
Hostel buildings vehicles Office machinery Factory Total
Audited RM Leasehold
RM Motor
RM RM Plant and
RM RM RM
Audited
Carrying amount at RM RM RM RM RM RM RM
1 July 2017, as previously reported - - - - - - -
Carrying
Initial Application
amount at of MFRS 16 - 59,108 1,225,451 337,440 3,633,308 - 5,255,307
1 July 2017, as previously reported - - - - - - -
1 July
Initial Application
2017, asofrestated
MFRS 16 - - 59,108
59,108 1,225,451
1,225,451 337,440
337,440 3,633,308
3,633,308 - - 5,255,307
5,255,307
Additions - - 184,500 - 960,000 - 1,144,500
1 July 2017, as restated
Reclassifications - - 59,108- 1,225,451
(111,192) 337,440- 3,633,308
(82,583) - - 5,255,307
(193,775)
Additions
Depreciation charges - - - (625) 184,500
(373,643) -
(56,240) 960,000
(932,796) - - 1,144,500
(1,363,304)
Reclassifications - - (111,192) - (82,583) - (193,775)
30 June 2018
Depreciation / 1 July 2018
charges - - 58,483
(625) 925,116
(373,643) 281,200
(56,240) 3,577,929
(932,796) - - 4,842,728
(1,363,304)
Additions - 2,223,375 355,428 - 5,020,602 - 7,599,405
June 2018 / 1 July 2018
30 Reclassifications - - 58,483- 925,116- 281,200- 3,577,929
(133,152) - - 4,842,728
(133,152)
Additions
Depreciation charges - - 2,223,375
(24,416) 355,428
(308,170) -
(56,240) 5,020,602
(1,304,235) - - 7,599,405
(1,693,061)
Reclassifications
Classified as held for sale - - -
(2,199,584) - - - - (133,152)- - - (133,152)
(2,199,584)
Depreciation charges - (24,416) (308,170) (56,240) (1,304,235) - (1,693,061)
Classified
Carryingasamount
held foratsale - (2,199,584) - - - - (2,199,584)
30 June 2019 - 57,858 972,374 224,960 7,161,144 - 8,416,336
Carrying amount at
30 June 2019 - 57,858 972,374 224,960 7,161,144 - 8,416,336
Page 50
347 Page 50
Registration No
ACCOUNTANTS’
13.MN HOLDINGS BERHADREPORT (Cont’d) 13. ACCOUNTANTS’ REPORT (Cont’d)
HOLDINGS
MNNOTES BERHAD
NOTES
6. TO THE COMBINED
RIGHT-OF-USE FINANCIAL
ASSETS STATEMENTS (CONT’D)
(CONT’D)
6. RIGHT-OF-USE ASSETS (CONT’D) Leasehold Motor Plant and

Audited RM RM
Leasehold RM
Motor RM RM
Plant and RM RM
Carrying amount at
Audited RM RM RM RM RM RM RM
1 July 2019 - 57,858 972,374 224,960 7,161,144 - 8,416,336
Additions
Carrying amount at - - 89,400 70,457 1,205,000 82,929 1,447,786
Disposal
1 July 2019 - - 57,858 - 972,374 - 224,960 - (204,000)
7,161,144 - - (204,000)
8,416,336
Additions - - - (625) (350,226)
89,400 (71,897)
70,457 (1,993,863)
1,205,000 (13,822)
82,929 (2,430,433)
1,447,786
Disposal - - - - (204,000) - (204,000)
30 June 2020/1
Depreciation July 2020
charges -
- 57,233
(625) 711,548
(350,226) 223,520
(71,897) 6,168,281
(1,993,863) 69,107
(13,822) 7,229,689
(2,430,433)
Additions 26,649 - 228,600 - 1,190,000 - 1,445,249
Reclassifications
30 June 2020/1 July 2020 - - 57,233 - (39,433)
711,548 223,520 - (1,446,988)
6,168,281 69,107 - (1,486,421)
7,229,689
Additions (3,331)
26,649 - (625) (314,246)
228,600 (79,726)
- (1,361,621)
1,190,000 (20,732)
- (1,780,281)
1,445,249
Reclassifications - - (39,433) - (1,446,988) - (1,486,421)
Carrying amount at
Depreciation charges (3,331) (625) (314,246) (79,726) (1,361,621) (20,732) (1,780,281)
30 June 2021 23,318 56,608 586,469 143,794 4,549,672 48,375 5,408,236
Additions
Carrying amount at - - 216,300 - - - 216,300
30 Reclassifications
June 2021 23,318 - 56,608 - 586,469 - 143,794 - (534,616)
4,549,672 48,375 - (534,616)
5,408,236
Additions -(4,441) - (208) (134,267)
216,300 (26,616)
- (412,125)
- -(6,911) (584,568)
216,300
Reclassifications - - - - (534,616) - (534,616)
31 October
Depreciation 2021
charges 18,877
(4,441) 56,400
(208) 668,502
(134,267) 117,178
(26,616) 3,602,931
(412,125) 41,464
(6,911) 4,505,352
(584,568)
31 October 2021 18,877 56,400 668,502 117,178 3,602,931 41,464 4,505,352

Leasehold Motor Plant and
Unaudited RM Leasehold
RM Motor
RM RM Plant and
RM RM RM
Unaudited
Carrying amount at RM RM RM RM RM RM RM
1 July 2020 - 57,233 711,548 223,520 6,168,281 69,107 7,229,689
Carrying amount at
1 July 2020
Depreciation charges - - 57,233(208) 711,548
(104,762) 223,520
(26,576) 6,168,281
(490,707) 69,107
(6,911) 7,229,689
(629,164)
31 October 2020 - 57,025 582,986 196,944 4,787,752 62,196 5,686,903
Depreciation charges - (208) (104,762) (26,576) (490,707) (6,911) (629,164)
31 October 2020 - 57,025 582,986 196,944 4,787,752 62,196 5,686,903
Page 51
348 Page 51
Registration No
13. ACCOUNTANTS’
MN HOLDINGS
NOTES BERHAD
NOTES
6. TO THE COMBINED
RIGHT-OF-USE FINANCIAL
ASSETS STATEMENTS (CONT’D)
(CONT’D)
6. RIGHT-OF-USE ASSETS (CONT’D) Audited Audited Audited Audited Unaudited Audited

Audited
RM Audited
RM Audited
RM Audited
RM Unaudited
RM Audited
RM
Analysed by: 30 June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021
Cost RM 6,624,469 RM11,606,481 RM12,544,267 RM 9,915,553 RM 9,672,304 RM8,898,123
Analysed
Accumulated
by: depreciation (1,781,741) (3,190,145) (5,314,578) (4,507,317) (3,985,401) (4,392,771)
Cost 6,624,469 11,606,481 12,544,267 9,915,553 9,672,304 8,898,123
Accumulated depreciation 4,842,728
(1,781,741) 8,416,336
(3,190,145) 7,229,689
(5,314,578) 5,408,236
(4,507,317) 5,686,903
(3,985,401) 4,505,352
(4,392,771)
4,842,728 8,416,336 7,229,689 5,408,236 5,686,903 4,505,352

The Group leases certain leasehold buildings, motor vehicles, office equipment and office premise of which the leasing activities are summarised below:-
The Leasehold
(a)Group buildings
leases The Group
certain leasehold has lease
buildings, motor agreements for certain
vehicles, office buildings
equipment and for its own
office premise
use.ofThe leases
which are for a
the leasing period of
activities are96summarised - 71 to
(31.10.2020below:-
96, 30.6.2021 - 96, 30.6.2020 - 71 to 96 and 30.6.2019 - 71 to 96) years, with no renewal or purchase option included in the
(a) Leasehold buildings The agreements.
Group has lease agreements for certain buildings for its own use. The leases are for a period of 96 (31.10.2020 - 71 to
96, 30.6.2021 - 96, 30.6.2020 - 71 to 96 and 30.6.2019 - 71 to 96) years, with no renewal or purchase option included in the
(b) Motor vehicles The Group has leased certain motor vehicles under hire purchase arrangements. The leases are secured by the leased
agreements.
assets. The Group has an option to purchase the asset at the expiry of the lease period at an insignificant amount.
(b) Motor vehicles The Group has leased certain motor vehicles under hire purchase arrangements. The leases are secured by the leased
(c) Offices The Group
assets. The Group
leaseshasoffices for operating
an option activities.
to purchase the asset
Theatlease periods
the expiry of the
of the offices
lease periodtypically run between
at an insignificant 1 to 4 years, with
amount.
options to renew the leases.
(c) Offices The Group leases offices for operating activities. The lease periods of the offices typically run between 1 to 4 years, with
The Group
(d) Plant and Machinery options leases
to renew the its plant and machinery under hire purchase arrangements. The leases are secured by the leased assets.
leases.
The Group has an option to purchase the asset at the expiry of the lease period at an insignificant amount.
(d) Plant and Machinery The Group leases its plant and machinery under hire purchase arrangements. The leases are secured by the leased assets.
(e) Factory The
TheGroup
Grouphasleases a factory
an option for its operations.
to purchase the asset The lease
at the period
expiry of the 2 years
is lease period
with at option
anan insignificant
to renew.amount.
Hostel
(e)(f)Factory The Group
TheGroup leases
leases hotel for
a factory foremployees.
its operations. lease
TheThe period
lease of the
period is 2hostel
years typically run between
with an option 1 to 2 years, with an option to
to renew.
renew the lease after that date.
(f) Hostel The Group leases hotel for employees. The lease period of the hostel typically run between 1 to 2 years, with an option to
renew the lease after that date.
Page 52
349 Page 52
Registration No
13. ACCOUNTANTS’
MN HOLDINGS BERHAD
MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
NOTES
7. TRADE COMBINED FINANCIAL STATEMENTS (CONT’D)
TO THERECEIVABLES
7. TRADE RECEIVABLES
7. TRADE RECEIVABLES
7. TRADE RECEIVABLES Audited Audited Audited Audited Unaudited Audited
June 2018
30Audited June 2019
30Audited June 2020
30Audited June 2021
30Audited October 2020
31Unaudited 31 October
Audited 2021
June 2018
30 Audited 31 October 2020
Unaudited 31 October
Audited2021
30 June
RM2018 30 June
RM2019 30 June
RM2020 30 June
RM2021 31 October
RM 2020 31 October
RM 2021
30 June
RM 2018 30 June
RM 2019 30 June
RM 2020 30 June
RM 2021 RM
31 October 2020 RM
31 October 2021
RM RM RM RM RM RM
Trade receivables: RM RM RM RM RM RM
Trade receivables:
Trade parties
- thirdreceivables: 8,605,460 14,888,376 12,228,611 35,573,016 17,252,775 33,502,094
third parties
-Trade receivables: 8,605,460 14,888,376 12,228,611 35,573,016 17,252,775 33,502,094
- related parties
- third parties 105,196
8,605,460 556,651
14,888,376 12,228,611- -
35,573,016 17,252,775- -
33,502,094
- related parties
third parties 105,196
8,605,460 556,651
14,888,376 -
12,228,611 -
35,573,016 -
17,252,775 -
33,502,094
- related parties 105,196 556,651 - - - -
- related parties 8,710,656
105,196 15,445,027
556,651 12,228,611
- 35,573,016
- 17,252,775
- 33,502,094
-
8,710,656 15,445,027 12,228,611 35,573,016 17,252,775 33,502,094
Allowance for impairment losses (785,798)
8,710,656 (2,165,084)
15,445,027 (3,605,518)
12,228,611 (5,805,689)
35,573,016 (4,088,515)
17,252,775 (6,515,639)
33,502,094
Allowance for impairment losses (785,798)
8,710,656 (2,165,084)
15,445,027 (3,605,518)
12,228,611 (5,805,689)
35,573,016 (4,088,515)
17,252,775 (6,515,639)
33,502,094
Allowance for impairment losses (785,798) (2,165,084) (3,605,518) (5,805,689) (4,088,515) (6,515,639)
Allowance for impairment losses 7,924,858
(785,798) 13,279,943
(2,165,084) 8,623,093
(3,605,518) 29,767,327
(5,805,689) 13,164,260
(4,088,515) 26,986,455
(6,515,639)
7,924,858 13,279,943 8,623,093 29,767,327 13,164,260 26,986,455
7,924,858 13,279,943 8,623,093 29,767,327 13,164,260 26,986,455
7,924,858 13,279,943 8,623,093 29,767,327 13,164,260 26,986,455
June 2018
30Audited June 2019
30Audited June 2020
30Audited June 2021
30Audited October 2021
31Unaudited 31 October
Audited 2021
June 2018
30 Audited 31 October
Unaudited2021 31 October
Audited2021
30 June
RM2018 30 June
RM2019 30 JuneRM2020 30 June
RM2021 RM
31 October 2021 31 October
RM 2021
30 June
RM 2018 30 June
RM 2019 30 June
RM 2020 30 June
RM 2021 RM
31 October 2021 RM
31 October 2021
RM RM RM RM RM RM
Allowance for impairment losses: RM RM RM RM RM RM
Allowance
At 1 July: for impairment losses:
Allowance
At 1 July: for impairment losses:
Allowance
At - As
1 July: for impairment
previously reported MFRSlosses:139 - (785,798) - - - -
At 1 previously
July:
- -AsEffect on reported
adoption of MFRS
MFRS 9139 -- (785,798)
(787,316) -
(2,165,084) -
(3,605,518) -
(3,605,518) -
(5,805,689)
- As previously
Effect reported
on adoption MFRS 139
of MFRS - (785,798)
(787,316) -
(2,165,084) -
(3,605,518) -
(3,605,518) -
(5,805,689)
--- As previously
Effect reported
on adoption of MFRS
MFRS99 139 --- (785,798)
(787,316) -
(2,165,084) -
(3,605,518) -
(3,605,518) -
(5,805,689)
- -Effect on adoption
Amount of MFRS
reported under 9
MFRS139/MFRS 9 -- (787,316)
(1,573,114) (2,165,084)
(2,165,084) (3,605,518)
(3,605,518) (3,605,518)
(3,605,518) (5,805,689)
(5,805,689)
Amount reported
- Addition during theunder MFRS139/MFRS
financial year/period (Note
9 23) -
(785,798) (1,573,114)
(627,693) (2,165,084)
(1,440,434) (3,605,518)
(2,200,171) (3,605,518)
(550,271) (5,805,689)
(730,730)
-Addition reported
Amountduring under MFRS139/MFRS
financial year/period 9
(Note -
(785,798) (1,573,114)
(627,693) (2,165,084)
(1,440,434) (3,605,518)
(2,200,171) (3,605,518)
(550,271) (5,805,689)
(730,730)
Reversal
-Addition reported
during
Amountduring the under
thethe MFRS139/MFRS
financial
financial year/period
year/period 9 23)
(Note
(Note 23)
23) --
(785,798) (1,573,114)
35,723
(627,693) (2,165,084)
-
(1,440,434) (3,605,518)
-
(2,200,171) (3,605,518)
67,274
(550,271) (5,805,689)
20,780
(730,730)
Addition
Reversalduring
duringthe
thefinancial
financialyear/period
year/period(Note
(Note23)23) -
(785,798) 35,723
(627,693) -
(1,440,434) -
(2,200,171) 67,274
(550,271) 20,780
(730,730)
Reversal
At 30 June/31 the financial year/period (Note 23)
duringOctober -
(785,798) 35,723
(2,165,084) -
(3,605,518) -
(5,805,689) 67,274
(4,088,515) 20,780
(6,515,639)
Reversal
At 30 June/31 the financial year/period (Note 23)
duringOctober -
(785,798) 35,723
(2,165,084) -
(3,605,518) -
(5,805,689) 67,274
(4,088,515) 20,780
(6,515,639)
At 30 June/31 October (785,798) (2,165,084) (3,605,518) (5,805,689) (4,088,515) (6,515,639)
At 30 June/31 October (785,798) (2,165,084) (3,605,518) (5,805,689) (4,088,515) (6,515,639)
The Group’s normal trade credit term is 30 (31.10.2020 - 30, 30.6.2021 - 30, 30.6.2020 - 30, 30.6.2019 - 30, 30.6.2018 - 30) days. Other credit terms are
The Group’s
assessed andnormal
approvedtradeon credit term is 30 (31.10.2020
a case-by-case basis. - 30, 30.6.2021 - 30, 30.6.2020 - 30, 30.6.2019 - 30, 30.6.2018 - 30) days. Other credit terms are
The
assessedGroup’s andnormal
approved tradeoncredit
a case-by-case (31.10.2020
term is 30 basis. - 30, 30.6.2021 - 30, 30.6.2020 - 30, 30.6.2019 - 30, 30.6.2018 - 30) days. Other credit terms are
The Group’s normal trade credit
assessed and approved on a case-by-case basis. term is 30 (31.10.2020 - 30, 30.6.2021 - 30, 30.6.2020 - 30, 30.6.2019 - 30, 30.6.2018 - 30) days. Other credit terms are
assessed and approved on a case-by-case basis. Page 53
Page 53
Page 53
350 Page 53
Registration No
ACCOUNTANTS’
MN HOLDINGS
NOTES TO THEBERHAD
NOTES
8. OTHER COMBINED FINANCIAL
TO THERECEIVABLES, STATEMENTS
DEPOSITS (CONT’D)
AND PREPAYMENTS
8. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

Audited
RM Audited
RM Audited
RM Audited
RM Unaudited
RM Audited
RM
Other receivables: RM RM RM RM RM RM
- third parties 1,413 - 29,346 70,828 33,287 42,929
Other receivables:
- related parties 192,598 4,600 - - 51,720 -
- third parties 1,413 - 29,346 70,828 33,287 42,929
- related parties 194,011
192,598 4,600
4,600 29,346
- 70,828
- 85,007
51,720 42,929
-
Advances to suppliers - - - 227,086 15,245 211,168
Deposits 194,011
5,786,044 4,600
5,949,125 29,346
6,661,075 70,828
7,650,630 85,007
7,316,305 42,929
7,839,279
Advances
Prepayments to suppliers -
811,496 -
560,324 -
1,359,860 227,086
653,610 15,245
949,315 211,168
617,239
Deposits 5,786,044 5,949,125 6,661,075 7,650,630 7,316,305 7,839,279
Prepayments 6,791,551
811,496 6,514,049
560,324 8,050,281
1,359,860 8,602,154
653,610 8,365,872
949,315 8,710,615
617,239
6,791,551 6,514,049 8,050,281 8,602,154 8,365,872 8,710,615

(a) The amount owing by related parties involves companies in which certain directors of the Company have controlling interest. The amount is
unsecured, interest-free and repayable on demand. The amount owing is to be settled in cash.
(a) The amount owing by related parties involves companies in which certain directors of the Company have controlling interest. The amount is
(b) The advances
unsecured, to suppliers
interest-free andare unsecured
repayable on and interest-free.
demand. The amount
The amount owing isowing will be offset
to be settled against future purchases from the suppliers.
in cash.
(c)
(b) Included
The in deposits
advances are performance
to suppliers are unsecuredbonds paid to secure
and interest-free. Thethe due performance
amount the Group's
owing will beofoffset obligations
against future in respective
purchases from theprojects amounted to
suppliers.
RM4,154,138 (31.10.2020 - RM4,214,138, 30.6.2021 - RM4,154,138, 30.6.2020 - RM4,214,138, 30.6.2019 - RM4,102,012 and 30.6.2018 -
(c) RM2,736,726).
Included in deposits deposits
Theseare are expected
performance bondstopaidbe refunded
to secureafter
the the
duecompletion of defect
performance of theliability.
Group's obligations in respective projects amounted to
RM4,154,138 (31.10.2020 - RM4,214,138, 30.6.2021 - RM4,154,138, 30.6.2020 - RM4,214,138, 30.6.2019 - RM4,102,012 and 30.6.2018 -
(d) Included in other
RM2,736,726). receivables
These deposits(related
are expected 31 October
parties)toasbeatrefunded after2020 were amount
the completion receivable
of defect in relation to the disposal of properties amounting to
liability.
RM51,720.
(d) Included in other receivables (related parties) as at 31 October 2020 were amount receivable in relation to the disposal of properties amounting to
RM51,720.
Page 54
351 Page 54
Registration No
ACCOUNTANTS’
MN
MN HOLDINGS
HOLDINGS
NOTES BERHAD
TO THEBERHAD
NOTES
NOTES TO
TO THE
THE COMBINED
COMBINED FINANCIAL
(CONT’D)
9. CONTRACT ASSETS/(LIABILITIES)
9.
9. CONTRACT
CONTRACT ASSETS/(LIABILITIES)
ASSETS/(LIABILITIES) Audited Audited Audited Audited Unaudited Audited
Audited
Audited Audited
Audited Audited
Audited Audited
Audited Unaudited
Unaudited Audited
Audited
RM RM RM RM RM RM
30
30 June
June 2018
2018 30
30 June
June 2019
2019 30
30 June
June 2020
2020 30
30 June
June 2021
2021 31 October
31 October 2021
2021 31 October
31 October 2021
2021
RM
RM RM
RM RM
RM RM
RM RM
RM RM
RM
Contract Assets
Contract
Contract Assets
Contract assets
Assetsrelating to construction contracts 22,315,748 27,881,908 37,566,743 50,411,933 40,069,533 50,283,469
Allowance for impairment losses - - - (1,349,004) (729,851) (1,053,707)
Contract
Contract assets
assets relating
relating to
to construction
construction contracts
contracts 22,315,748
22,315,748 27,881,908
27,881,908 37,566,743
37,566,743 50,411,933
50,411,933 40,069,533
40,069,533 50,283,469
50,283,469
Allowance for impairment losses
Allowance for impairment losses 22,315,748
-- 27,881,908
-- 37,566,743
-- (1,349,004)
49,062,929
(1,349,004) (729,851)
39,339,682
(729,851) (1,053,707)
49,229,762
(1,053,707)
22,315,748
22,315,748 27,881,908
27,881,908 37,566,743
37,566,743 49,062,929
49,062,929 39,339,682
39,339,682 49,229,762
49,229,762
Allowance for impairment losses:-
At 1 July - - - - - (1,349,004)
Allowance
Allowance for
for impairment
impairment losses:-
losses:-
Addition during the financial year/period - - - (1,349,004) (729,851) (31,000)
At
At 1 July -- -- -- -- -- (1,349,004)
(1,349,004)
Reversal
1 July during the financial year/period - - - - - 326,297
Addition
Addition during
during the
the financial
year/period -- -- -- (1,349,004)
(1,349,004) (729,851)
(729,851) (31,000)
(31,000)
Reversal
At 30 during
June/31 the
October
Reversal during the financial
year/period --- --- --- (1,349,004)
-- (729,851)
-- 326,297
(1,053,707)
326,297
At
At 30
30 June/31
June/31 October
October -- -- -- (1,349,004)
(1,349,004) (729,851)
(729,851) (1,053,707)
(1,053,707)
Contract Liabilities
Contract liabilities relating to construction contracts (1,268,629) (1,126,707) (2,749,859) (12,379,594) (3,558,471) (10,471,953)
Contract
Contract Liabilities
Liabilities
Contract
liabilities relating
relating to
to construction
contracts (1,268,629)
(1,268,629) (1,126,707)
(1,126,707) (2,749,859)
(2,749,859) (12,379,594)
(12,379,594) (3,558,471)
(3,558,471) (10,471,953)
(10,471,953)
(a) The contract assets primarily relate to the Group’s right to consideration for construction work completed on construction contracts but not yet
billed as at the reporting date. The amount will be invoiced within 30 to 365 (31.10.2020 - 30 to 365, 30.6.2021 - 30 to 365, 30.6.2020 - 30 to
(a)
(a) The
365,contract
The 30.6.2019
contract assets
assets primarily
- 30 to 365 and
primarily relate
relate to
30.6.2018
to the 30 to 365)
the -Group’s
Group’s right
right to
days.
to consideration
consideration for for construction
construction work
work completed
completed on on construction
contracts but
but not
not yet
yet
billed as at the reporting date. The amount will be invoiced within 30 to 365 (31.10.2020 - 30 to 365, 30.6.2021
billed as at the reporting date. The amount will be invoiced within 30 to 365 (31.10.2020 - 30 to 365, 30.6.2021 - 30 to 365, 30.6.2020 -- 30 - 30 to 365, 30.6.2020 30 to
to
365,
Included
365, 30.6.2019
30.6.2019 30
in the --contract
30 to
to 365
365 and
assets are retention
and 30.6.2018
30.6.2018 -- 30 to
30sum
to 365)
365) days.
receivables
days. totalling RM11,297,470 (31.10.2020 - RM10,306,716, 30.6.2021 - RM9,896,757,
30.6.2020 - RM9,845,946, 30.6.2019 - RM8,140,525 and 30.6.2018 - RM6,806,337). These retention sums are expected to be collected within
Included
the periods
Included in
in the
the contract
ranging fromassets
contract 30 to 365
assets are retention
are (31.10.2020
retention sum
sum - 30receivables
receivables totalling
to 365, 30.6.2021
totalling RM11,297,470
RM11,297,470 (31.10.2020
- 30 to 365, 30.6.2020
(31.10.2020 RM10,306,716,
- 30 to-- 365, 30.6.2019 -30.6.2021
RM10,306,716, 30.6.2021 RM9,896,757,
30 to 365 --and 30.6.2018 -
RM9,896,757,
30.6.2020
30.6.2020 -
30 to 365) -days. RM9,845,946, 30.6.2019 - RM8,140,525 and 30.6.2018 - RM6,806,337). These retention sums
RM9,845,946, 30.6.2019 - RM8,140,525 and 30.6.2018 - RM6,806,337). These retention sums are expected to be collected within are expected to be collected within
the
the periods
periods ranging
ranging from
from 30 30 to
to 365
365 (31.10.2020
(31.10.2020 -- 30 30 to to 365,
365, 30.6.2021
30.6.2021 -- 30 30 to
to 365,
365, 30.6.2020
30.6.2020 -- 30
30 toto 365,
365, 30.6.2019
30.6.2019 -- 30
30 toto 365
365 and
and 30.6.2018
30.6.2018 --
30
30 to to 365)
365) days.
days.
Page 55
Page
Page 55
55
352
Registration No
13. ACCOUNTANTS’
MN HOLDINGS
NOTES BERHAD
NOTES
9. TO THE COMBINED
CONTRACT FINANCIAL STATEMENTS
ASSETS/(LIABILITIES) (CONT’D) (CONT’D)
9. CONTRACT
(b) ASSETS/(LIABILITIES)
The contract (CONT’D)
liabilities primarily relates to advances received from customers for construction contracts of which the revenue will be recognised
over the remaining contract term of the specific contract it relates to, ranging from 30 to 365 (31.10.2020 - 30 to 365, 30.6.2021 - 30 to 365,
(b) 30.6.2020
The contract- 30
liabilities 30.6.2019
to 365,primarily - 30 to
relates to365 and 30.6.2018
advances received- from
30 tocustomers
365) days. for construction contracts of which the revenue will be recognised
over the remaining contract term of the specific contract it relates to, ranging from 30 to 365 (31.10.2020 - 30 to 365, 30.6.2021 - 30 to 365,
(c) The changes
30.6.2020 - 30 toto contract asset and
365, 30.6.2019 - 30contract liability
to 365 and balances
30.6.2018 during
- 30 to 365) financial year/period are summarised below:-
thedays.
(c) The changes to contract asset and contract liability balances

Auditedduring the financial
Audited year/period
Auditedare summarised
Audited below:- Unaudited Audited
Audited
RM Audited
RM Audited
RM Audited
RM Unaudited
RM Audited
RM
RM RM RM RM RM RM
At 1 July 17,258,861 21,047,119 26,755,201 34,816,884 34,816,884 36,683,335
Revenue recognised in profit or loss during the
At 1financial
July year/period 17,258,861
52,257,972 21,047,119
66,450,403 26,755,201
68,155,125 34,816,884
115,143,244 34,816,884
29,741,435 36,683,335
33,946,994
Revenue recognised in profit or loss during the
Billings to customers during the financial year/period (48,469,714) (60,742,321) (60,093,442) (111,927,789) (28,047,257) (32,167,817)
financial
Net year/period
impairment losses on contract assets 52,257,972- 66,450,403- 68,155,125- 115,143,244
(1,349,004) 29,741,435
(729,851) 33,946,994
295,297
Billings to customers during the financial year/period (48,469,714) (60,742,321) (60,093,442) (111,927,789) (28,047,257) (32,167,817)
At 30
Net June/31 October
impairment losses on contract assets 21,047,119
- 26,755,201
- 34,816,884
- 36,683,335
(1,349,004) 35,781,211
(729,851) 38,757,809
295,297
At 30 June/31 October 21,047,119 26,755,201 34,816,884 36,683,335 35,781,211 38,757,809
Represented by:-
Contract assets 22,315,748 27,881,908 37,566,743 49,062,929 39,339,682 49,229,762
Represented by:-
Contract liabilities (1,268,629) (1,126,707) (2,749,859) (12,379,594) (3,558,471) (10,471,953)
Contract assets 22,315,748 27,881,908 37,566,743 49,062,929 39,339,682 49,229,762
Contract liabilities 21,047,119
(1,268,629) 26,755,201
(1,126,707) 34,816,884
(2,749,859) 36,683,335
(12,379,594) 35,781,211
(3,558,471) 38,757,809
(10,471,953)
21,047,119 26,755,201 34,816,884 36,683,335 35,781,211 38,757,809
Page 56
353 Page 56
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
10. AMOUNT OWING BY DIRECTORS
The amount owing is non-trade in nature, unsecured and interest-free. The amount owing was
10. AMOUNT
settled OWING
in cash duringBY
theDIRECTORS
financial year ended 30 June 2019.
The amount owing is non-trade in nature, unsecured and interest-free. The amount owing was
11. FIXEDinDEPOSITS
settled cash duringWITH LICENSED
the financial BANKS
year ended 30 June 2019.
(a) The fixed deposits with licensed banks of the Group at the end of the reporting period
11. FIXED DEPOSITS
bore effectiveWITH LICENSED
interest BANKS
rates ranging from 1.50% to 1.85% (31.10.2020 - 1.95% to 3.11%,
30.6.2021 - 1.95% to 3.10%, 30.6.2020 - 1.95% to 3.11%, 30.6.2019 - 2.95% to 3.35%
(a) The 30.6.2018
and fixed deposits with to
- 2.80% licensed
3.20%)banks of the The
per annum. Group at the
fixed end ofhave
deposits the maturity
reportingperiods
period
ranging from 30
bore effective to 365rates
interest days.ranging from 1.50% to 1.85% (31.10.2020 - 1.95% to 3.11%,
30.6.2021 - 1.95% to 3.10%, 30.6.2020 - 1.95% to 3.11%, 30.6.2019 - 2.95% to 3.35%
(b) The fixed deposits
and 30.6.2018 - 2.80% with licensedper
to 3.20%) banks
annum.of The
the fixed
Groupdeposits
amounting
have to RM3,062,339
maturity periods
(31.10.2020
ranging from 30- RM2,513,972,
to 365 days. 30.6.2021 - RM2,904,828, 30.6.2020 - RM2,259,878,
30.6.2019 - RM1,482,320 and 30.6.2018 - RM422,552) have been pledged to licensed
(b) banksfixed
The as security
deposits for with
banking facilities
licensed granted
banks to the
of the Groupamounting
Group at the endtoof RM3,062,339
the reporting
(31.10.2020 - RM2,513,972,
period as disclosed in Notes 15,30.6.2021
19, 20 and-21RM2,904,828,
to the combined 30.6.2020 - RM2,259,878,
30.6.2019 - RM1,482,320 and 30.6.2018 - RM422,552) have been pledged to licensed
banks as security for banking facilities granted to the Group at the end of the reporting
12. DISPOSAL
periodASSETS CLASSIFIED
as disclosed in Notes 15,AS 19,HELD
20 andFOR
21 toSALE
the combined financial statements.
The Group decided to dispose off seven (7) of its leasehold buildings at Kelana Jaya, Selangor
12. DISPOSAL
and source forASSETS
potentialCLASSIFIED AS HELD
buyers. Accordingly, the FOR SALE buildings and term loans have
said leasehold
been presented in the combined statement of financial position as “Non-current assets classified
as
Theheld for sale”
Group andto“Liabilities
decided dispose offdirectly
sevenassociated with non-current
(7) of its leasehold assets
buildings classified
at Kelana Jaya,asSelangor
held for
sale”source
and respectively.
for potential buyers. Accordingly, the said leasehold buildings and term loans have
been presented in the combined statement of financial position as “Non-current assets classified
as
Theheld for sale”
carrying and of
amount “Liabilities
the said directly
leaseholdassociated
buildings with non-current
classified as heldassets classified
for sales as held
is the same as for
its
sale” respectively.
carrying value before it was reclassified as held for sale. The Group has entered into Sales and
Purchase Agreements in the financial year ended 30 June 2021 as disclosed in Note 36(b) to the
combined
The financial
carrying amountstatements.
of the said leasehold buildings classified as held for sales is the same as its
carrying value before it was reclassified as held for sale. The Group has entered into Sales and
Purchase Agreements in the financial year ended 30 June 2021 as disclosed in Note 36(b) to the
combined financial statements.
Page 57
Page 57
354
Registration No
13. ACCOUNTANTS’
MN HOLDINGS
NOTES BERHAD
NOTES
13. TO
SHARE COMBINED FINANCIAL STATEMENTS (CONT’D)
THE CAPITAL
13. SHARE CAPITAL

The movements in the issued and paid-up share capital of the Group are as follows:-
The movements in the issued Auditedand paid-up Audited shareAudited capital of the Group are
Audited Unaudited
as follows:-Audited Audited Audited Audited Audited Unaudited Audited
30 June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021 30 June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021
Audited
Audited <----------------------------------------------------
Audited NumberAudited Unaudited Audited
of shares ----------------------------------------------> Audited
RM Audited
RM Audited
RM Audited
RM Unaudited
RM Audited
RM
30 June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021 30 June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021
Issued and Fully Paid-up <---------------------------------------------------- Number of shares ----------------------------------------------> RM RM RM RM RM RM
Issued
Ordinary Fully Paid-up
and Shares
Ordinary Shares
At 1 July 650,000 800,000 1,000,000 1,250,000 1,250,000 1,750,002 650,000 800,000 1,000,000 1,250,000 1,250,000 1,750,002
Issuance of shares 150,000 200,000 250,000 500,002 - - 150,000 200,000 250,000 500,002 - -
At 1 July 650,000 800,000 1,000,000 1,250,000 1,250,000 1,750,002 650,000 800,000 1,000,000 1,250,000 1,250,000 1,750,002
At 30 June/31
Issuance of sharesOctober 800,000
150,000 1,000,000
200,000 1,250,000
250,000 1,750,002
500,002 1,250,000
- 1,750,002
- 800,000
150,000 1,000,000
200,000 1,250,000
250,000 1,750,002
500,002 1,250,000
- 1,750,002
-
At 30 June/31 October 800,000 1,000,000 1,250,000 1,750,002 1,250,000 1,750,002 800,000 1,000,000 1,250,000 1,750,002 1,250,000 1,750,002
(a) The new ordinary shares issued rank pari passu in all respects with the existing ordinary shares of the Group.
(a)
(b) The
Fornewthe ordinary
purpose shares
of this issued
report, rank pari passu
the total numberin of respects
all shares represent existing
with the the ordinary
aggregate number the Group.
sharesofofissued and fully paid-up shares of all the combined
entities within the Group.
(b) For the purpose of this report, the total number of shares represent the aggregate number of issued and fully paid-up shares of all the combined
entities within the Group.
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Registration No
13. ACCOUNTANTS’
MN HOLDINGS
NOTES BERHAD
NOTES
14. TO
LEASE COMBINED FINANCIAL STATEMENTS (CONT’D)
THE LIABILITIES
14. LEASE LIABILITIES Audited Audited Audited Audited Unaudited Audited

Audited
RM Audited
RM Audited
RM Audited
RM Unaudited
RM Audited
RM
At 1 July RM 4,768,560 RM 4,163,177 RM 4,965,430 RM5,381,539 RM 5,381,539 RM 4,147,570
Addition 1,151,600 3,074,730 3,327,429 1,606,975 - 150,000
At Interest
1 July expense recognised in profit or loss 4,768,560
247,481 4,163,177
305,867 4,965,430
372,487 5,381,539
286,667 5,381,539
89,091 4,147,570
65,487
Addition
Repayment of principal 1,151,600
(1,756,983) 3,074,730
(2,272,477) 3,327,429
(2,911,320) 1,606,975
(2,840,944) -
(856,804) 150,000
(865,052)
Interest expense
Repayment recognised
of interest in profit or loss
expense 247,481
(247,481) 305,867
(305,867) 372,487
(372,487) 286,667
(286,667) 89,091
(89,091) 65,487
(65,487)
Repayment of principal (1,756,983) (2,272,477) (2,911,320) (2,840,944) (856,804) (865,052)
At 30 June/31
Repayment October
of interest expense 4,163,177
(247,481) 4,965,430
(305,867) 5,381,539
(372,487) 4,147,570
(286,667) 4,524,735
(89,091) 3,432,518
(65,487)
At 30 June/31 October 4,163,177 4,965,430 5,381,539 4,147,570 4,524,735 3,432,518
Analysed by:-
Current liabilities 1,760,887 2,276,989 2,812,439 2,254,804 2,515,571 1,791,139
Analysed
Non-current
by:- liabilities 2,402,290 2,688,441 2,569,100 1,892,766 2,009,164 1,641,379
Current liabilities 1,760,887 2,276,989 2,812,439 2,254,804 2,515,571 1,791,139
Non-current liabilities 4,163,177
2,402,290 4,965,430
2,688,441 5,381,539
2,569,100 4,147,570
1,892,766 4,524,735
2,009,164 3,432,518
1,641,379
4,163,177 4,965,430 5,381,539 4,147,570 4,524,735 3,432,518
(a) Certain lease liabilities of the Group are secured by the Group’s motor vehicles and plant and machinery under the hire purchase arrangements as
disclosed in Note 6 to the combined financial statements, with lease terms ranging from 3 to 7 years and bore effective interest rates ranging from
(a) Certain to 10.05%
3.20%lease (31.10.2020
liabilities of the Group- 3.20% to 9.99%,
are secured 30.6.2021
by the Group’s- motor to 10.05%,
3.20%vehicles 30.6.2020
and plant and machinery 9.99%,
- 3.20% tounder the30.6.2019 - 3.20%
hire purchase arrangements
to 9.99% as and
30.6.2018
disclosed 3.20%
in -Note 8.56%)
6 totothe per annum.
combined financial statements, with lease terms ranging from 3 to 7 years and bore effective interest rates ranging from
3.20% to 10.05% (31.10.2020 - 3.20% to 9.99%, 30.6.2021 - 3.20% to 10.05%, 30.6.2020 - 3.20% to 9.99%, 30.6.2019 - 3.20% to 9.99% and
The interest
(b) 30.6.2018 - 3.20%
ratestowere
8.56%)
fixedper the inception of the hire purchase agreements.
at annum.
(b) The interest rates were fixed at the inception of the hire purchase agreements.
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13. ACCOUNTANTS’
MN HOLDINGS
NOTES BERHAD
NOTES
15. TO
TERM COMBINED FINANCIAL STATEMENTS (CONT’D)
THELOANS
15. TERM LOANS Audited Audited Audited Audited Unaudited Audited

Audited
RM Audited
RM Audited
RM Audited
RM Unaudited
RM Audited
RM
Current liabilities RM 25,918 RM 502,630 RM 427,546 RM 763,283 RM 882,168 RM 562,482
Non-current liabilities 522,493 984,132 804,735 2,256,401 2,115,592 2,152,588
Current liabilities 25,918 502,630 427,546 763,283 882,168 562,482
Non-current liabilities 548,411
522,493 1,486,762
984,132 1,232,281
804,735 3,019,684
2,256,401 2,997,760
2,115,592 2,715,070
2,152,588
Liabilities directly associated with non-current
assets classified as held for sale 548,411- 1,486,762
1,862,564 1,232,281
1,822,498 3,019,684- 2,997,760
1,814,384 2,715,070-
Liabilities directly associated with non-current
assets classified as held for sale 548,411
- 3,349,326
1,862,564 3,054,779
1,822,498 3,019,684
- 4,812,144
1,814,384 2,715,070
-
548,411 3,349,326 3,054,779 3,019,684 4,812,144 2,715,070

The term loans of the Group at the end of the reporting period bore effective interest rates ranging from 3.40% to 12.50% (30.10.2020 - 3.17% to 12.50%,
30.6.2021 - 3.40% to 12.50%, 30.6.2020 - 3.94% to 12.50%, 30.6.2019 - 4.14% to 12.50% and 30.6.2018 - 4.79% to 7.82%) per annum and secured by:
The term loans of the Group at the end of the reporting period bore effective interest rates ranging from 3.40% to 12.50% (30.10.2020 - 3.17% to 12.50%,
(a)
30.6.2021 a first legal
- 3.40% to 12.50%,
charge30.6.2020
over the -Group’s
3.94% toleasehold
12.50%, 30.6.2019
buildings -and investment
4.14% to 12.50%properties as disclosed
and 30.6.2018 - 4.79% to in 7.82%) and
Note 6per annum 5 respectively
Note and secured by: to the
financial statements;
(a) a first legal charge over the Group’s leasehold buildings and investment properties as disclosed in Note 6 and Note 5 respectively to the
(b) financial
a fixed statements;
deposit with licensed financial institution as disclosed in Note 11 to the financial statements; and
(b)(c) a fixed
a jointdeposit with licensed
and several financial
guarantee institution
of the directors of as
thedisclosed
Group. in Note 11 to the financial statements; and
(c) a joint and several guarantee of the directors of the Group.
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
16. DEFERRED TAX LIABILITIES/(ASSETS)
At Recognised in At
16. DEFERRED TAX LIABILITIES/(ASSETS)
1 July 2017 Profit or Loss 30 June 2018
Audited RM RM RM
At Recognised in At
30.6.2018
Audited RM RM RM
Deferred Tax Liabilities
30.6.2018
Property, plant and equipment 151,623 40,777 192,400
Contract assets 2,600,045 381,840 2,981,885
Property, plant and equipment 151,623
2,751,668 40,777
422,617 192,400
3,174,285
Contract assets 2,600,045 381,840 2,981,885
Deferred Tax Assets
2,751,668 422,617 3,174,285
Provisions - (188,592) (188,592)
Deferred Tax Assets
2,751,668 234,025 2,985,693
Provisions - (188,592) (188,592)
At Initial application As restated, at
2,751,668 Recognised in
234,025 At
2,985,693
1 July 2018 of MFRS 9 1 July 2018 Profit or Loss 30 June 2019
Audited RM RM RM RM RM
At Initial application As restated, at Recognised in At
1 July 2018 of MFRS 9 1 July 2018 Profit or Loss 30 June 2019
30.6.2019
Audited RM RM RM RM RM

30.6.2019
Property, plant and equipment 192,400 - 192,400 257,972 450,372
Contract asset 2,981,885 - 2,981,885 (1,918,937) 1,062,948

3,174,285 - 192,400
3,174,285 257,972
(1,660,965) 450,372
1,513,320
Contract asset 2,981,885 - 2,981,885 (1,918,937) 1,062,948
Deferred Tax Assets
3,174,285 - 3,174,285 (1,660,965) 1,513,320
Provisions (188,592) (188,955) (377,547) (142,073) (519,620)
Deferred Tax Assets
2,985,693 (188,955) 2,796,738 (1,803,038) 993,700
Provisions (188,592) (188,955) (377,547) (142,073) (519,620)
2,985,693 (188,955) 2,796,738 (1,803,038) 993,700
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MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
16. DEFERRED TAX LIABILITES/(ASSETS) (CONT’D)
At Recognised in At
Audited RM RM RM
At Recognised in At
30.6.2020 1 July 2019 Profit or Loss 30 June 2020
Audited RM RM RM
30.6.2020
Property, plant and equipment 450,372 (333,216) 117,156
Contract asset 1,062,948 (17,227) 1,045,721
Property, plant and equipment 1,513,320

450,372 (350,443)
(333,216) 1,162,877
117,156
Deferred Tax Assets
Contract asset 1,062,948 (17,227) 1,045,721
Provisions 1,513,320
(519,620) (350,443)
(346,090) 1,162,877
(865,710)
Deferred Tax Assets
993,700 (696,533) 297,167
Provisions (519,620) (346,090) (865,710)
At 993,700 Recognised in
(696,533) At297,167
Audited RM RM RM
At Recognised in At
30.6.2021 1 July 2020 Profit or Loss 30 June 2021
Audited RM RM RM
30.6.2021
Property, plant and equipment 117,156 (495,954) (378,798)
Deferredasset
Contract Tax Liabilities 1,045,721 (1,022,935) 22,786

1,162,877 (495,954)
(1,518,889) (378,798)
(356,012)
Contract
Deferredasset
Tax Assets 1,045,721 (1,022,935) 22,786
Provisions 1,162,877
(865,710) (1,518,889)
(489,908) (356,012)
(1,355,618)
Deferred Tax Assets
297,167 (2,008,797) (1,711,630)
Provisions (865,710) (489,908) (1,355,618)
297,167 (2,008,797) (1,711,630)
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MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
1 July 2021 Profit or Loss 31 October 2021
16. DEFERRED
Audited TAX LIABILITES/(ASSETS) (CONT’D)
RM RM RM
31.10.2021 1 July 2021 Profit or Loss 31 October 2021

Audited RM RM RM
31.10.2021
Contract asset 22,786 118,700 141,486
Deferred Tax Assets
Contract asset 22,786 118,700 141,486
Property, plant and equipment (378,798) 65,850 (312,948)
Deferred Tax Assets
Provisions (1,355,618) (461,026) (1,816,644)
Property, plant and equipment (1,734,416)

(378,798) (395,176)
65,850 (2,129,592)
(312,948)
Provisions (1,355,618) (461,026) (1,816,644)
(1,711,630) (276,476) (1,988,106)
(1,734,416) (395,176) (2,129,592)
(1,711,630) (276,476) (1,988,106)
At Recognised in At
1 July 2020 Profit or Loss 31 October 2020
Unaudited RM RM RM
At Recognised in At
31.10.2020 1 July 2020 Profit or Loss 31 October 2020
Unaudited RM RM RM
31.10.2020
Contract asset 1,045,721 (576,541) 469,180
Deferred Tax Assets
Contract asset 1,045,721 (576,541) 469,180
Property, plant and equipment 117,156 (369,382) (252,226)
Deferred
ProvisionsTax Assets (865,710) (290,697) (1,156,407)
Property, plant and equipment (748,554)

117,156 (660,079)
(369,382) (1,408,633)
(252,226)
Provisions (865,710) (290,697) (1,156,407)
297,167 (1,236,620) (939,453)
(748,554) (660,079) (1,408,633)
297,167 (1,236,620) (939,453)
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
17. TRADE PAYABLES
17. TRADE PAYABLES30 June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021
RM RM RM RM RM RM
Trade payables: 30 June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021
- Third parties RM
10,817,528 RM
18,883,552 RM
22,826,447 RM
42,227,603 RM
26,285,445 RM
43,165,541
- Related parties 41,872 220,689 280,615 - - -
Trade payables:
10,859,400 19,104,241 23,107,062 42,227,603 26,285,445 43,165,541
- Third parties 10,817,528 18,883,552 22,826,447 42,227,603 26,285,445 43,165,541
- Related parties 41,872 220,689 280,615 - - -
(a) The Group’s normal trade credit terms range from 30 to 120 (30.10.2020 - 30 to 120,
10,859,400 19,104,241 23,107,062 42,227,603 26,285,445 43,165,541
30.6.2021 - 30 to 120, 30.6.2020 - 30 to 120, 30.6.2019 - 30 to 90 and 30.6.2018 - 30 to 120)
days.
(a) The Group’s normal trade credit terms range from 30 to 120 (30.10.2020 - 30 to 120,
(b) 30.6.2021
The - 30owing
amount to 120,to 30.6.2020 - 30 toinvolved
related parties 120, 30.6.2019 - 30into which
companies 90 andcertain
30.6.2018 - 30 toof120)
directors the
days.
Group have controlling interests. The normal trade credit terms range from 30 to 120
(31.10.2020 - 30 to 120, 30.6.2021 - 30 to 120, 30.6.2020 - 30 to 120, 30.6.2019 - 30 to 90
(b) The amount owing
and 30.6.2018 - 30 toto120)
related
days.parties involved companies in which certain directors of the
Group have controlling interests. The normal trade credit terms range from 30 to 120
(31.10.2020 - 30 to 120, 30.6.2021 - 30 to 120, 30.6.2020 - 30 to 120, 30.6.2019 - 30 to 90
18. and
OTHER 30.6.2018 - AND
PAYABLES 30 to 120) days.
ACCRUALS

18. OTHER PAYABLES 30AND ACCRUALS
June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021
RM RM RM RM RM RM
Other payables: 30 June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021
- Third parties 167,079
RM 2,305,802
RM 170,593
RM RM685,568 RM347,786 RM 870,387
- Related parties - 330,000 - - - -
Other payables:
- Third parties 167,079 2,305,802
2,635,802 170,593 685,568 347,786 870,387
-Goods
Relatedandparties
services tax payable -
59,704 330,000
- - - - -
Accruals 963,561 1,700,015 1,262,161 659,780 630,218 521,537
167,079 2,635,802 170,593 685,568 347,786 870,387
Goods and services tax payable 59,704
1,190,344 -
4,335,817 -
1,432,754 -
1,345,348 -
978,004 -
1,391,924
Accruals 963,561 1,700,015 1,262,161 659,780 630,218 521,537
1,190,344 4,335,817 1,432,754 1,345,348 978,004 1,391,924

19. BANKERS’ ACCEPTANCES
The bankers’ acceptances of the Group bore effective interest rates of 3.55% - 4.31% (31.10.2020 -
19. BANKERS’ ACCEPTANCES
3.55% to 3.65%, 30.6.2021 - 3.55% to 4.27%, 30.6.2020 - 3.95% to 5.40% and 30.6.2019 - 5.05% to
6.01%) per annum at the end of the reporting period and are secured by:
The bankers’ acceptances of the Group bore effective interest rates of 3.55% - 4.31% (31.10.2020 -
3.55% fixed
(a) to 3.65%, 30.6.2021
deposits - 3.55% to
with licensed 4.27%, institutions
financial 30.6.2020 - as
3.95% to 5.40%
disclosed in and
Note30.6.2019
11 to the- 5.05% to
financial
6.01%)statements;
per annum at
andthe end of the reporting period and are secured by:
(a)
(b) fixed
a jointdeposits withguarantee
and several licensed of
financial institutions
the directors as disclosed in Note 11 to the financial
of the Group.
statements; and
(b) a joint and several guarantee of the directors of the Group.
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
20. TRUST RECEIPT
The trust receipt of the Group bore an effective interest rate of 6.67% (31.10.2020 - Nil,
20. TRUST RECEIPT
30.6.2021 - 7.20%, 30.6.2020 - 0.28% to 5.59%) per annum at the end of the reporting period
and are secured by:
The trust receipt of the Group bore an effective interest rate of 6.67% (31.10.2020 - Nil,
(a) fixed- 7.20%,
30.6.2021 deposits30.6.2020
with licensed financial
- 0.28% institutions
to 5.59%) as disclosed
per annum in Note
at the end 11reporting
of the to the financial
period
and arestatements;
secured by:and
(b)
(a) a jointdeposits
fixed and several
withguarantee of the directors
licensed financial of the
institutions asGroup.
disclosed in Note 11 to the financial
statements; and
21. (b)
BANKaOVERDRAFTS
joint and several guarantee of the directors of the Group.
(a) The bank overdrafts of the Group are secured by fixed deposits with licensed banks as
21. BANKdisclosed
OVERDRAFTS
in Note 11 to the financial statements.
(b)
(a) The bank overdrafts of the Group are at the end ofbythe
secured financial
fixed yearwith
deposits ended 30 June
licensed 2019
banks as
bore floating
disclosed interest
in Note rate
11 to theoffinancial
8.17% per annum.
statements.
(b) The bank overdrafts of the Group at the end of the financial year ended 30 June 2019
bore floating interest rate of 8.17% per annum.
Page 65
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362
Registration No
13. MNACCOUNTANTS’ REPORT (Cont’d)

HOLDINGS BERHAD 13. ACCOUNTANTS’ REPORT (Cont’d)
MN HOLDINGS
NOTES TOBERHAD
THE COMBINED FINANCIAL STATEMENTS (CONT’D)
NOTES
22.TO THE COMBINED FINANCIAL STATEMENTS (CONT’D)
REVENUE
22. REVENUE Audited Audited Audited Audited Unaudited Audited

1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
Audited to Audited to Audited to Audited to Unaudited to Audited to
1.7.2017
30.6.2018 1.7.2018
30.6.2019 1.7.2019
30.6.2020 1.7.2020
30.6.2021 1.7.2020
31.10.2020 1.7.2021
31.10.2021
to RM to RM to RM to RM to RM to RM
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
Revenue from Contracts with Customers RM RM RM RM RM RM
Revenue from Contracts

Recognised with Customers
over time
Construction services 50,931,888 64,914,312 67,890,669 115,023,244 29,849,933 33,946,994
Recognised over time
Construction services
Recognised at a point in time 50,931,888 64,914,312 67,890,669 115,023,244 29,849,933 33,946,994
Sales of goods 821,750 761,890 117,530 176,265 122,004 34,385
Recognised at a point in time
Sales of goods 51,753,638
821,750 65,676,202
761,890 68,008,199
117,530 176,265 29,971,937
115,199,509 122,004 33,981,379
34,385
51,753,638 65,676,202 68,008,199 115,199,509 29,971,937 33,981,379
Page 66
363 Page 66
Registration No

MN HOLDINGS
NOTES TOBERHAD
NOTES
23.TO THE
NETCOMBINED FINANCIAL
IMPAIRMENT STATEMENTS
LOSSES ON FINANCIAL(CONT’D)
ASSETS AND CONTRACT ASSETS
23. NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS AND CONTRACT

Audited AuditedASSETS Audited Audited Unaudited Audited
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
1.7.2017
30.6.2018 1.7.2018
30.6.2019 1.7.2019
30.6.2020 1.7.2020
30.6.2021 1.7.2020
31.10.2020 1.7.2021
31.10.2021
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
Impairment losses: RM RM RM RM RM RM
- Trade receivables (Note 7)
Impairment losses:
- Individually impaired under MFRS 139 (785,798) - - - - -
- Trade receivables
- Additions(Note
under7)MFRS 9 - (627,693) (1,440,434) (2,200,171) (550,271) (730,730)
- Individually impaired
- Contract assetsunder
(NoteMFRS
9) 139 (785,798) - - - - - -(1,349,004) - (729,851) - (31,000)
- Additions under MFRS 9
Reversal of impairment losses: - (627,693) (1,440,434) (2,200,171) (550,271) (730,730)
- Contract assets
- Trade receivables
(Note 9) (Note 7) - - - 35,723 - - (1,349,004) - (729,851)67,274 (31,000)20,780
of impairment
Reversal- Contract assetslosses:
(Note 9) - - - - - 326,297
- Trade receivables (Note 7) - 35,723 - - 67,274 20,780
- Contract assets (Note 9) - (785,798) - (591,970) -(1,440,434) -(3,549,175) (1,212,848)
- (414,653)
326,297
(785,798) (591,970) (1,440,434) (3,549,175) (1,212,848) (414,653)
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Registration No
13. REPORT (Cont’d) 13. ACCOUNTANTS’ REPORT (Cont’d)

MNACCOUNTANTS’
HOLDINGS BERHAD
MN HOLDINGS
NOTES TOBERHAD
NOTES
24.TO THE COMBINED
PROFIT FINANCIAL
BEFORE TAXATIONSTATEMENTS (CONT’D)
24. PROFIT BEFORE TAXATION Audited Audited Audited Audited Unaudited Audited
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
1.7.2017
30.6.2018 1.7.2018
30.6.2019 1.7.2019
30.6.2020 1.7.2020
30.6.2021 1.7.2020
31.10.2020 1.7.2021
31.10.2021
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
Profit before taxation is arrived at after RM RM RM RM RM RM
charging/(crediting):-
Profit before taxation is arrived at after
charging/(crediting):-
Auditors' remuneration:
- audit fees
Auditors' remuneration:
- current financial year/period 22,000 45,000 45,000 51,000 - 70,000
- audit fees- overprovision in the previous financial year (1,000) - - - - -
- current financial year/period
Depreciation of investment properties (Note 5) 22,000 14,800 45,000 14,800 45,000 14,800 51,000 14,800 - 4,933 70,000 4,933
- overprovision
Depreciation in the
of property, financial
previous plant andyear
equipment (Note 4) (1,000)226,039 - 465,424 - 570,577 - 1,385,754 - 386,967 - 527,977
Depreciation of investment
Depreciation properties
of right-of-use assets
(Note(Note
5) 6) 14,800
1,363,304 14,8001,693,061 14,800 2,430,433 14,800
1,780,281 4,933629,164 4,933584,568
Depreciation
Deposit of property,
written offplant and equipment (Note 4) 226,039 - 465,424 - 570,577 - 1,385,754109,000 386,967 - 527,977 -
Depreciation of right-of-use
Directors' assets (Note 6)
fee (Note 29) 1,363,304 54,0001,693,061 67,000 2,430,433 36,000 1,780,281 36,000 629,164 12,000 584,568 82,000
DepositDirectors'
written offnon-fee emoluments: (Note 29) - - - 109,000 - -
Directors' fee (Note
- salaries and29)bonuses 54,000540,000 67,000670,000 36,000748,000 36,000902,000 12,000252,000 82,000268,000
Directors' non-fee emoluments:
- defined contribution (Note 29)
benefits 64,800 80,400 90,280 107,040 30,240 32,160
- salaries and
- others bonuses 540,000 2,628 670,000 2,771 748,000 2,770 902,000 2,771 252,000 923 268,000 923
contribution
- definedStaff costs: benefits 64,800 80,400 90,280 107,040 30,240 32,160
- others- salaries, wages, allowances and bonuses 2,628
1,861,146 2,771 2,554,595 2,770
2,562,564 2,771
3,039,005 923906,954 923
1,053,345
Staff costs:
- defined contribution benefits 150,279 209,440 310,907 375,381 113,329 130,686
- salaries, wages,
- other allowances and bonuses
benefits 1,861,146338,3892,554,595441,695 2,562,564386,869 3,039,005502,609 906,954 28,680 1,053,345 83,517
- defined contribution benefits 150,279 209,440 310,907 375,381 113,329 130,686
- other benefits 338,389 441,695 386,869 502,609 28,680 83,517
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Registration No

MN HOLDINGS
NOTES TOBERHAD
NOTES
24.TO THE COMBINED
PROFIT FINANCIAL
BEFORE TAXATIONSTATEMENTS
(CONT’D) (CONT’D)
24. PROFIT BEFORE TAXATION (CONT’D) Audited Audited Audited Audited Unaudited Audited
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
1.7.2017
30.6.2018 1.7.2018
30.6.2019 1.7.2019
30.6.2020 1.7.2020
30.6.2021 1.7.2020 31.10.2021
31.10.2020 1.7.2021
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
Profit before taxation is arrived at after RM RM RM RM RM RM
charging/(crediting):- (Cont'd)
Profit before taxation is arrived at after
Lease expenses:
charging/(crediting):- (Cont'd)
- hostel 59,210 85,560 191,434 78,300 54,600 17,000
- machinery
Lease expenses: 496,562 1,059,391 777,943 1,771,309 383,334 319,573
- hostel - premises 59,210 - 85,560 6,500 191,434 20,785 78,300 74,450 54,600 32,550 17,000 3,000
- site
- machinery 496,562 75,6001,059,391152,258 777,943 49,250 1,771,309 12,000 383,334 4,000 319,573 5,500
- premises- store - 300 6,500 4,000 20,785 34,100 74,450 7,200 32,550 13,800 3,000 -
- site - printer 75,600 - 152,258 - 49,250 - 12,000 - 4,000 800 5,500 -
- store Unrealised loss/(gain) on foreign exchange 300 515 4,000 478 34,100 (535) 7,200 243 13,800 238 - 4
- printerInterest expense on lease liabilities (Note 14) - 247,481 - 305,867 - 372,487 - 286,667 800 89,091 - 65,487
UnrealisedInterest expense
loss/(gain) onon financial
foreign liabilities that are not at fair
exchange 515 478 (535) 243 238 4
value through
Interest expense on lease profit
liabilities
or loss:(Note 14) 247,481 305,867 372,487 286,667 89,091 65,487
Interest expense
- bankeronacceptances
financial liabilities that are not at fair - 86,335 113,217 98,346 31,088 14,895
value through overdrafts
- bankprofit or loss: 1,657 1,104 1,799 1,163 997 124
letter of credit
- banker- acceptances - 4,597 86,335 - 113,217 2,354 98,346 - 31,088 - 14,895 -
- term loans
- bank overdrafts 1,657 25,801 1,104101,590 1,799171,660 1,163216,900 997 24,559 124 44,781
- letter of- trust
creditreceipt 4,597 - - - 2,354 14,630 - 41,162 - 18,235 - 13,719
- termProperty,
loans plant and equipment written off 25,801 - 101,590 - 171,660 - 216,900 2,430 24,559 2,430 44,781 -
- trustCOVID-19-related
receipt subsidies from government - - - - 14,630
(169,200) 41,162 (178,200) 18,235 (122,600) (204,600)
13,719
Property, Gain
plant disposal
onand equipmentof property,
writtenplant
off and equipment - (102,253) - - - (40,853) 2,430(30,999) 2,430 - - -
Gain on disposal
COVID-19-related subsidies of right-of-use assets
from government - - - - (169,200) - (178,200)
(205,716) (122,600) - (204,600) -
Gain onTotal interest
disposal income on
of property, financial
plant assets measured at
and equipment (102,253) - (40,853) (30,999) - -
amortised
Gain on disposal cost
of right-of-use assets - (104,808) - (57,805) - (80,100) (205,716)(54,779) - (4,295) - (13,920)
Total interest
Rentalincome
incomeon from investment
financial assetsproperties
measured at (37,143) (23,800) (22,800) (22,800) (7,600) (7,600)
amortised cost (104,808) (57,805) (80,100) (54,779) (4,295) (13,920)
Rental income from investment properties (37,143) (23,800) (22,800) (22,800) (7,600) (7,600)
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
25. INCOME TAX EXPENSE
25. INCOME TAX EXPENSE 1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
to to to to to to
Audited
30.6.2018 Audited
30.6.2019 Audited
30.6.2020 Audited
30.6.2021 Unaudited
31.10.2020 Audited
31.10.2021
1.7.2017
RM 1.7.2018
RM 1.7.2019
RM 1.7.2020
RM 1.7.2020
RM 1.7.2021
RM
to to to to to to
Current tax expense 30.6.2018
2,364,000 30.6.2019
4,149,000 30.6.2020
2,693,000 30.6.2021
4,268,000 31.10.2020
1,419,000 31.10.2021
962,000
Overprovision in the previous financial year RM
(19,620) RM - RM - RM
134,860 RM
369,292 RM -
Current tax expense 2,344,380

2,364,000 4,149,000
4,149,000 2,693,000
2,693,000 4,402,860
4,268,000 1,788,292
1,419,000 962,000
962,000
Real property gain
Overprovision in thetaxprevious financial year -
(19,620) -- -- 14,556
134,860 -
369,292 --
2,344,380
2,344,380 4,149,000
4,149,000 2,693,000
2,693,000 4,417,416
4,402,860 1,788,292
1,788,292 962,000
962,000
Real property gain tax - - - 14,556 - -
Deferred tax (Note 16):
2,344,380 4,149,000 2,693,000 4,417,416 1,788,292 962,000
- origination and reversal of temporary differences 234,025 (1,803,038) (695,183) (1,630,470) (868,746) (51,073)
Deferred tax (Note
- overprovision 16): financial year
in previous - - (1,350) (378,327) (367,874) (225,403)
- origination and reversal of temporary differences 234,025 (1,803,038) (696,533)

(695,183) (2,008,797)
(1,630,470) (1,236,620)
(868,746) (276,476)
(51,073)
- overprovision in previous financial year - - (1,350) (378,327) (367,874) (225,403)
2,578,405 2,345,962 1,996,467 2,408,619 551,672 685,524
234,025 (1,803,038) (696,533) (2,008,797) (1,236,620) (276,476)
A reconciliation of income tax expense applicable2,345,962
2,578,405 to the profit before taxation
1,996,467 2,408,619 at the statutory
551,672 tax
685,524
rate to income tax expense at the effective tax rate of the Group is as follows:-
A reconciliation of income tax expenseAudited

applicableAudited Audited
to the profit before Audited
taxation atUnaudited Audited
the statutory tax
1.7.2017 tax rate
rate to income tax expense at the effective 1.7.2018 1.7.2019 is as1.7.2020
of the Group follows:- 1.7.2020 1.7.2021
to to to to to to
30.6.2018
Audited 30.6.2019
Audited 30.6.2020
Audited 30.6.2021
Audited 31.10.2020
Unaudited 31.10.2021
Audited
RM
1.7.2017 RM
1.7.2018 RM
1.7.2019 RM
1.7.2020 RM
1.7.2020 RM
1.7.2021
to to to to to to
Profit before taxation 9,945,534
30.6.2018 8,712,702
30.6.2019 7,657,939
30.6.2020 10,537,298
30.6.2021 2,112,610
31.10.2020 3,729,520
31.10.2021
RM RM RM RM RM RM
Tax at the statutory tax rate of 24% 2,386,928 2,091,048 1,837,905 2,528,951 507,026 895,085
Profit before taxation 9,945,534 8,712,702 7,657,939 10,537,298 2,112,610 3,729,520
Tax effects of:-
Non-taxable
Tax incometax rate of 24%
at the statutory (20,140)
2,386,928 -
2,091,048 -
1,837,905 -
2,528,951 -
507,026 -
895,085
Non-deductible expenses 301,237 324,914 246,912 150,579 85,228 57,842
Differential
Tax effects inof:-tax rates (70,000) (70,000) (87,000) (42,000) (42,000) (42,000)
Real propertyincome
Non-taxable gain tax -
(20,140) -- -- 14,556
- -- --
(Over)/underprovision
Non-deductible expenses of current tax in the 301,237 324,914 246,912 150,579 85,228 57,842
previous financial
Differential year
in tax rates (19,620)
(70,000) -
(70,000) -
(87,000) 134,860
(42,000) 369,292
(42,000) -
(42,000)
Overprovision
Real property gain of deferred
tax taxation in the - - - 14,556 -- --
previous financial yearof current tax in the
(Over)/underprovision - - (1,350) (378,327) (367,874) (225,403)
previous financial year (19,620)
2,578,405 -
2,345,962 -
1,996,467 134,860
2,408,619 369,292
551,672 -
685,524
Overprovision of deferred taxation in the - -
previous financial year - - (1,350) (378,327) (367,874) (225,403)
2,578,405 2,345,962 1,996,467 2,408,619 551,672 685,524
Page 70
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD
MN HOLDINGS BERHAD
25. INCOME TAX EXPENSE (CONT’D)
25. INCOME TAX EXPENSE (CONT’D)
MNHB
MNHB
The Company is not subjected to tax as there is no taxable income.
The Company is not subjected to tax as there is no taxable income.
MNSB
MNSB
Domestic income tax is calculated at the Malaysia statutory tax rate of 24% (31.10.2020 - 24%
and 30.6.2021 - 24%) of the estimated assessable profits for the financial period ended 31
Domestic2021.
October income tax is calculated at the Malaysia statutory tax rate of 24% (31.10.2020 - 24%
and 30.6.2021 - 24%) of the estimated assessable profits for the financial period ended 31
October 2021. tax rate on the first RM600,000 (30.6.2019 - RM500,000 and 30.6.2018 -
The corporate
RM500,000) of chargeable income is 17% for the financial year ended 30 June 2020 (30.6.2019 -
The and
17% corporate tax - rate
30.6.2018 18%).onThe
the
taxfirst
rate RM600,000
applicable to (30.6.2019
the balance -of RM500,000 and 30.6.2018
chargeable income is 24%. -
RM500,000) of chargeable income is 17% for the financial year ended 30 June 2020 (30.6.2019 -
17% and 30.6.2018 - 18%). The tax rate applicable to the balance of chargeable income is 24%.
MPTSB
MPTSB
The corporate tax rate on the first RM600,000 (31.10.2020 - RM600,000, 30.6.2021 - RM600,000,
30.6.2020 - RM600,000, 30.6.2019 - RM500,000 and 30.6.2018 - RM500,000) of chargeable
The corporate
income is 17% tax ratefinancial
for the on the first RM600,000
period ended 31(31.10.2020 - RM600,000,
October 2021 (31.10.2020 30.6.2021 - RM600,000,
- 17%, 30.6.2021 - 17%,
30.6.2020 - 17%, 30.6.2019 - 17% and 30.6.2018 - 18%). The tax rate applicable to thechargeable
30.6.2020 - RM600,000, 30.6.2019 - RM500,000 and 30.6.2018 - RM500,000) of balance of
income is 17%
chargeable for the
income financial period ended 31 October 2021 (31.10.2020 - 17%, 30.6.2021 - 17%,
is 24%.
30.6.2020 - 17%, 30.6.2019 - 17% and 30.6.2018 - 18%). The tax rate applicable to the balance of
chargeable income is 24%.
26. EARNINGS PER SHARE
26. EARNINGS PER SHARE
1.7.2017
Audited 1.7.2018
Audited 1.7.2019
Audited 1.7.2020
Audited 1.7.2020
Unaudited 1.7.2021
Audited
to
1.7.2017 to
1.7.2018 to
1.7.2019 to
1.7.2020 to
1.7.2020 to
1.7.2021
30.6.2018
to 30.6.2019
to 30.6.2020
to 30.6.2021
to 31.10.2020
to 31.10.2021
to
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
Profit attributable to
owners
Profit of the Company
attributable to (RM) 7,367,129 6,366,740 5,661,472 8,128,679 1,560,938 3,043,996
owners of the Company (RM) 7,367,129 6,366,740 5,661,472 8,128,679 1,560,938 3,043,996
Number of ordinary shares in issue 800,000 1,000,000 1,250,000 1,750,002 1,250,000 1,750,002
Number of ordinary shares in issue 800,000 1,000,000 1,250,000 1,750,002 1,250,000 1,750,002
Basic earnings per share (RM) 9.21 6.37 4.53 4.64 1.25 1.74
Basic earnings per share (RM) 9.21 6.37 4.53 4.64 1.25 1.74
The Group has not issued any dilutive potential ordinary shares and hence, the diluted earnings per
share is equal to the basic earnings per share.
The Group has not issued any dilutive potential ordinary shares and hence, the diluted earnings per
share is equal to the basic earnings per share.
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
27. DIVIDENDS
27. DIVIDENDS 1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
to to to to to to
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
RM RM RM RM RM RM
to to to to to to
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
Ordinary Shares
RM RM RM RM RM RM
MNSB
Ordinary Shares
- first interim dividend of 36.36 sen
per ordinary shares 200,000 - - - - -
MNSB
- seconf interim dividend of 54.55 sen
- seconf interim dividend of 54.55 sen
per ordinary shares - 500,000 - - - -
- first final dividend of 100.00 sen
per ordinary shares - - 1,000,000 - - -
- an interim dividend of 100.00 sen
per ordinary shares - - - 1,000,000 - -
per ordinary shares - - 1,000,000 - - -
- an interim dividend of 100.00 sen
MPTSB
per ordinary shares - - - 1,000,000 - -
MPTSB
per ordinary shares - - 120,000 - - -
per ordinary shares - - - 60,000 - -
per ordinary shares - - 120,000 - - -
- first interim dividend of 8.00 sen 500,000 650,000 1,120,000 1,060,000 - -
per ordinary shares - - - 60,000 - -
500,000 650,000 1,120,000 1,060,000 - -
Page 72
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Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TOBERHAD
NOTES
28.TO THE COMBINED
CASH FINANCIAL STATEMENTS (CONT’D)
FLOW INFORMATION
28. FLOW
CASH(a) The INFORMATION
cash disbursed for the purchase of property, plant and equipment and the addition of right-of-use assets are as follows:-
(a) The cash disbursed for the purchase of property, plant and equipment
Audited and the addition
Audited of right-of-use
Auditedassets are
Unaudited
as follows:- Unaudited Audited
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
Audited to Audited to Audited to Unaudited to Unaudited to Audited to
1.7.201730.6.2018 1.7.201830.6.2019 1.7.201930.6.2020 1.7.202030.6.2021 1.7.202031.10.20201.7.2021
31.10.2021
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
Property, plant and equipment RM RM RM RM RM RM
Property, plant
Cost and equipment
of property, plant and equipment purchased (Note 4)/
Cash disbursed for purchase of property, plant
and equipment
Cost of property, plant and equipment purchased (Note 4)/ 313,548 1,490,627 496,989 249,221 169,469 260,425
Cash disbursed for purchase of property, plant
and equipment 313,548 1,490,627 496,989 249,221 169,469 260,425
Right-of-use assets
Right-of-use
Cost ofassets
right-of-use assets acquired (Note 6) 1,144,500 7,599,405 1,447,786 1,445,249 - 216,300
Add: cost of right-of-use assets acquired in
previous
Cost of right-of-use financial
assets acquired
year(Note 6) 1,144,500 - 7,599,405 - 1,447,786 2,062,043 1,445,249 - - - 216,300 -
Add: costLess:
of right-of-use new lease
Addition ofassets liabilities
acquired in (Note 28(b)) (1,151,600) (3,074,730) (3,327,429) (1,606,975) - (150,000)
previous financial year - - 2,062,043 - - -
(7,100) 4,524,675 182,400 (161,726) - 66,300
Less: Addition of new lease liabilities (Note 28(b)) (1,151,600) (3,074,730) (3,327,429) (1,606,975) - (150,000)
(7,100) 4,524,675 182,400 (161,726) - 66,300
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
28. CASH FLOW INFORMATION (CONT’D)
(b) The reconciliations of liabilities arising from financing activities are as follow:-
28. CASH FLOW INFORMATION (CONT’D)
Hire Lease Term
(b) The reconciliations of liabilities arising fromPurchase
financing activities are as follow:-
Liabilities Loans Total
Audited RM RM RM RM
Hire Lease Term
30.6.2018 Purchase Liabilities Loans Total
Audited RM RM RM RM
At 1 July 2017 4,431,120 - 558,037 4,989,157
30.6.2018
Effects on adoption of MFRS 16 (4,431,120) 4,768,560 - 337,440
At 11 July
At July 2017
2017, as restated -
4,431,120 4,768,560
- 558,037
558,037 5,326,597
4,989,157
Effects on adoption of MFRS 16 (4,431,120) 4,768,560 - 337,440
Changes in Financing Cash Flows
At 1 July 2017, as restated - 4,768,560 558,037 5,326,597
Proceeds from drawdown - - 12,988 12,988
Changes in Financing
Repayment Cash
of borrowing Flows
principal - (1,756,983) (22,614) (1,779,597)
Repayment of borrowing interests - (247,481) (25,801) (273,282)
Proceeds from drawdown - - 12,988 12,988
Repayment of borrowing principal -- (1,756,983)
(2,004,464) (22,614)
(35,427) (1,779,597)
(2,039,891)
Repayment of borrowing interests - (247,481) (25,801) (273,282)
Non-cash Changes
- (2,004,464) (35,427) (2,039,891)
Acquisition of new lease (Note 14) - 1,151,600 - 1,151,600
Non-cash Changes
Finance charges recognised in
profit or loss (Note 24) - 247,481 25,801 273,282
Acquisition of new lease (Note 14) - 1,151,600 - 1,151,600
Finance charges recognised in - 1,399,081 25,801 1,424,882
profit or loss (Note 24) - 247,481 25,801 273,282
At 30 June 2018 - 4,163,177 548,411 4,711,588
- 1,399,081 25,801 1,424,882
At 30 June 2018 - 4,163,177 548,411 4,711,588
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
NOTES
28. TO THE
CASH COMBINED
FLOW FINANCIAL
INFORMATION STATEMENTS (CONT’D)
(CONT’D)
28. CASH
(b) TheFLOW INFORMATION
reconciliations (CONT’D)
of liabilities arising from financing activities are as follow (cont’d):-
(b) The reconciliations of liabilities arising from financing
Lease activities
Term are as follow
Banker's(cont’d):-
Liabilities Loans Acceptances Total
Lease Term Banker's
Audited RM RM RM RM
Liabilities Loans Acceptances Total
Audited RM RM RM RM
30.6.2019
30.6.2019
At 1 July 2018 4,163,177 548,411 - 4,711,588
At 1 July 2018 4,163,177 548,411 - 4,711,588

Changes
Proceedsinfrom
Financing Cash Flows
drawdown - 2,899,463 5,278,000 8,177,463
Repayment of borrowing principal (2,272,477) (98,548) (3,030,000) (5,401,025)
Proceeds from drawdown - 2,899,463 5,278,000 8,177,463
Repayment of borrowing interests (305,867) (101,590) (86,335) (493,792)
Repayment of borrowing principal (2,272,477) (98,548) (3,030,000) (5,401,025)
Repayment of borrowing interests (305,867)
(2,578,344) (101,590)
2,699,325 (86,335)
2,161,665 (493,792)
2,282,646
(2,578,344) 2,699,325 2,161,665 2,282,646

Non-cash Changes
Non-cash
AcquisitionChanges
of new lease (Note 14) 3,074,730 - - 3,074,730
Acquisition of new lease (Note 14) 3,074,730 - - 3,074,730
profit or loss (Note 24) 305,867 101,590 86,335 493,792
profit or loss (Note 24) 305,867
3,380,597 101,590
101,590 86,335
86,335 493,792
3,568,522
At 30 June 2019 3,380,597

4,965,430 101,590
3,349,326 86,335
2,248,000 3,568,522
10,562,756
At 30 June 2019 4,965,430 3,349,326 2,248,000 10,562,756
Page 75
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Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTESBERHAD
NOTES TO COMBINED
28.THECASH FLOW FINANCIAL STATEMENTS
INFORMATION (CONT’D) (CONT’D)
28. (b) The
CASH FLOW reconciliations of
INFORMATION liabilities arising from financing activities are as follow (Cont’d):-
(CONT’D)
(b) The reconciliations of liabilities arising from financing activities are as

Lease
follow (Cont’d):- Term Trust Banker's
Liabilities Loans Receipts Acceptances Total
Audited Lease RM Term RM Trust RM Banker's RM RM
Liabilities Loans Receipts Acceptances Total
Audited 30.6.2020 RM RM RM RM RM
30.6.2020
At 1 July 2019 4,965,430 3,349,326 - 2,248,000 10,562,756
At 1 July 2019
Changes in Financing Cash Flows 4,965,430 3,349,326 - 2,248,000 10,562,756
Changes in Financing
Proceeds Cash
from Flows
drawdown - 126,690 1,694,754 6,758,000 8,579,444
Repayment of borrowing principal (2,911,320) (421,237) (1,190,754) (7,433,000) (11,956,311)
Proceeds from drawdown - 126,690 1,694,754 6,758,000 8,579,444
Repayment of borrowing interests (372,487) (171,660) (14,630) (113,217) (671,994)
Repayment of borrowing principal (2,911,320) (421,237) (1,190,754) (7,433,000) (11,956,311)
Repayment of borrowing interests (372,487)
(3,283,807)
(171,660) (466,207) (14,630) 489,370
(113,217) (788,217)(671,994)
(4,048,861)
Non-cash Changes (3,283,807) (466,207) 489,370 (788,217) (4,048,861)
Non-cash Acquisition
Changes of new lease (Note 14) 3,327,429 - - - 3,327,429
Acquisition of new lease (Note 14) 3,327,429 - - - 3,327,429
profit or loss (Note 24) 372,487 171,660 14,630 113,217 671,994
profit or loss (Note 24) 372,487 3,699,916171,660 171,660 14,630 14,630
113,217 113,217 671,994 3,999,423
At 30 June 2020 3,699,916 5,381,539171,660 3,054,779 14,630 504,000

113,217 1,573,000 10,513,318
3,999,423
At 30 June 2020 5,381,539 3,054,779 504,000 1,573,000 10,513,318
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MN HOLDINGS BERHAD
MN HOLDINGS
NOTESBERHAD
NOTES TO COMBINED
28. CASH FLOW INFORMATION
(b) The (CONT’D)
reconciliations of liabilities arising from financing activities are as follow (Cont’d):-
are as follow (Cont’d):-

(b) The reconciliations of liabilities arising from financing activitiesLease Term Trust Banker's Bank
Liabilities Loans Receipts Acceptances Overdrafts Total
Lease Term Trust Banker's Bank
Audited RM RM RM RM RM RM
Audited RM RM RM RM RM RM
30.6.2021
30.6.2021
At 1 July 2020 5,381,539 3,054,779 504,000 1,573,000 - 10,513,318
At 1 July 2020 5,381,539 3,054,779 504,000 1,573,000 - 10,513,318

Changes inProceeds
Financingfrom Flows
Cashdrawdown - 2,299,990 2,453,643 8,579,000 - 13,332,633
Repayment of borrowing principal (2,840,944) (2,335,085) (1,313,543) (7,662,000) - (14,151,572)
Proceeds from drawdown - 2,299,990 2,453,643 8,579,000 - 13,332,633
Repayment of borrowing interests (286,667) (216,900) (41,162) (98,346) (1,163) (644,238)
Repayment of borrowing principal (2,840,944) (2,335,085) (1,313,543) (7,662,000) - (14,151,572)
Repayment of borrowing interests (286,667) (216,900) (41,162) (98,346) (1,163) (644,238)
(3,127,611) (251,995) 1,098,938 818,654 (1,163) (1,463,177)
(3,127,611) (251,995) 1,098,938 818,654 (1,163) (1,463,177)

Non-cash Changes
Non-cash Changes
Acquisition of new lease (Note 14) 1,606,975 - - - - 1,606,975
Acquisition of new lease (Note 14) 1,606,975 - - - - 1,606,975
profit or loss (Note 24) 286,667 216,900 41,162 98,346 1,163 644,238
profit or loss (Note 24) 216,900
286,667 1,893,642 216,900 41,162 98,346
41,162 98,346 1,163 1,163
644,238 2,251,213
1,893,642 216,900 41,162 98,346 1,163 2,251,213

At 30 June 2021 4,147,570 3,019,684 1,644,100 2,490,000 - 11,301,354
At 30 June 2021 4,147,570 3,019,684 1,644,100 2,490,000 - 11,301,354
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MN HOLDINGS BERHAD
MN HOLDINGS
NOTESBERHAD
NOTES TO COMBINED
28. (b) The
CASH FLOW reconciliations of
INFORMATION liabilities arising from financing activities are as follow (Cont’d):-
(CONT’D)

Audited Lease RM Term RM Trust RM Banker's RM Bank RM RM
Audited 31.10.2021 RM RM RM RM RM RM
31.10.2021At 1 July 2021 4,147,570 3,019,684 1,644,100 2,490,000 - 11,301,354
At 1 July 2021
Changes in Financing Cash Flows 4,147,570 3,019,684 1,644,100 2,490,000 - 11,301,354
Changes inProceeds
Financingfrom
Cashdrawdown
Flows - - - 1,290,000 - 1,290,000
Repayment of borrowing principal (865,052) (304,614) (1,402,254) (2,490,000) - (5,061,920)
Proceeds from drawdown
Repayment of borrowing interests - (65,487) - (44,781) - (13,719)
1,290,000 (14,895) - (124)
1,290,000 (139,006)
Repayment of borrowing interests (65,487) (930,539)
(44,781) (349,395)(13,719)(1,415,973)
(14,895)(1,214,895) (124) (124)
(139,006)(3,910,926)
Non-cash Changes (930,539) (349,395) (1,415,973) (1,214,895) (124) (3,910,926)
Acquisition of new lease (Note 14)

Non-cash Changes 150,000 - - - - 150,000
Acquisition ofprofit lease
new or loss(Note
(Note14)
24) 150,000 65,487 - 44,781 - 13,719 - 14,895 - 150,000
124 139,006
profit or loss (Note 24) 65,487 215,48744,781 44,781 13,719 13,719
14,895 14,895 124 124
139,006 289,006
At 31 October 2021 215,487 3,432,51844,781 2,715,070 13,719 241,846

14,895 1,290,000 124 - 289,006 7,679,434
At 31 October 2021 3,432,518 2,715,070 241,846 1,290,000 - 7,679,434
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MN HOLDINGS
NOTESBERHAD
NOTES TO COMBINED
(b) The (CONT’D)
reconciliations of liabilities arising from financing activities are as follow (Cont’d):-

Lease Term Trust Banker's Bank
Unaudited RM RM RM RM RM RM
Unaudited RM RM RM RM RM RM
31.10.2020
31.10.2020
At 1 July 2020 5,381,539 3,054,779 504,000 1,573,000 - 10,513,318
At 1 July 2020 5,381,539 3,054,779 504,000 1,573,000 - 10,513,318

Changes inProceeds
Financingfrom
Cashdrawdown
Flows - 1,799,990 620,000 2,888,000 - 5,307,990
Proceeds from drawdown - 1,799,990 620,000 2,888,000 - 5,307,990
Repayment of borrowing interests (89,091) (24,559) (18,235) (31,088) (997) (163,970)
Repayment of borrowing interests (89,091) (945,895)
(24,559) 1,732,806(18,235) (522,235)
(31,088) 996,912 (997) (997)
(163,970) 1,260,591
(945,895) 1,732,806 (522,235) 996,912 (997) 1,260,591

Non-cash Changes
Acquisition of new lease (Note 14)

Non-cash Changes - - - - - -
Acquisition of new lease (Note 14) - - - - - -
profit or loss (Note 24) 89,091 24,559 18,235 31,088 997 163,970
profit or loss (Note 24) 89,091 89,09124,559 24,559 18,235 18,235
31,088 31,088 997 997
163,970 163,970
At 31 October 2020 89,091 4,524,73524,559 4,812,144 18,235 - 31,088 2,601,000 997 - 163,97011,937,879
At 31 October 2020 4,524,735 4,812,144 - 2,601,000 - 11,937,879
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MN HOLDINGS
NOTESBERHAD
NOTES TO COMBINED
28. THECASH FLOW FINANCIAL STATEMENTS
(c) The cash and cash(CONT’D)
equivalents comprise the following:-
(c) The cash and cash equivalents comprise the following:- Audited Audited Audited Audited Unaudited Audited
RM RM RM RM RM RM
Fixed deposits with licensed banks RM RM
903,505 RM
1,712,320 2,259,878RM 2,904,828RM 2,513,972RM 4,062,339
Cash and bank balances 957,189 3,202,716 3,774,415 8,352,980 3,585,906 8,672,731
Fixed deposits
Bank
withoverdrafts
licensed (Note
banks21) 903,505 - 1,712,320 2,259,878
(77,680) - 2,904,828 - 2,513,972 - 4,062,339 -
Cash and bank balances 957,189 3,202,716 3,774,415 8,352,980 3,585,906 8,672,731
Bank overdrafts (Note 21) - 1,860,694 (77,680) 4,837,356 - 6,034,293 - 11,257,808 - 6,099,878 - 12,735,070
Less: Fixed deposits pledged to licensed
banks (Note 11) 1,860,694 (422,552)
4,837,356 (1,482,320)
6,034,293 (2,259,878)
11,257,808 (2,904,828)6,099,878 (2,513,972)
12,735,070 (3,062,339)
Less: Fixed deposits pledged to licensed
banks (Note 11) (422,552) 1,438,142
(1,482,320) 3,355,036
(2,259,878) 3,774,415
(2,904,828) 8,352,980(2,513,972) 3,585,906(3,062,339) 9,672,731
1,438,142 3,355,036 3,774,415 8,352,980 3,585,906 9,672,731
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MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
29. KEY MANAGEMENT PERSONNEL
The key management personnel of the Group include executive directors and certain members
29. of senior
KEY management ofPERSONNEL
MANAGEMENT the Group.
The key management personnel compensation during executive

of the Group include the respective financial
directors and years/periods are
certain members
assenior
of follows:
management of the Group.
(a) Directors
The key management personnel compensation during the respective financial years/periods are
as follows:
(a) Directors 1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
to to to to to to
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
RM RM RM RM RM RM
to to to to to to
Directors of the Group
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
RM RM RM RM RM RM
Short-term employee benefits:
Directors of the Group
- fees 54,000 67,000 36,000 36,000 12,000 82,000
- salaries and bonuses 540,000 670,000 748,000 902,000 252,000 268,000
- others 2,628 2,771 2,770 2,771 923 923
- fees 54,000 67,000 36,000 36,000 12,000 82,000
Defined contribution benefits 64,800 80,400 90,280 107,040 30,240 32,160
-Total
othersdirectors remuneration (Note 24) 2,628
661,428 2,771
820,171 2,770
877,050 2,771
1,047,811 923
295,163 923
383,083
Defined contribution benefits 64,800 80,400 90,280 107,040 30,240 32,160
Total directors remuneration (Note 24) 661,428 820,171 877,050 1,047,811 295,163 383,083
(b) Other Key Management Personnel

(b) Other Key Management Personnel 1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
to to to to to to
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
RM RM RM RM RM RM
to to to to to to
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
RM RM RM RM RM RM
- others 737 10,025 36,107 40,396 13,235 10,327
-Total
salaries and bonuses
compensation for personnel 5,500 75,048 280,262 315,395 102,535 88,358
- others
other key management 737
6,237 10,025
85,073 36,107
316,369 40,396
355,791 13,235
115,770 10,327
98,685
Total compensation for personnel

other key management 6,237 85,073 316,369 355,791 115,770 98,685
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MN HOLDINGS BERHAD
30. RELATED PARTY DISCLOSURES
(a) Identities of Related Parties
30. RELATED PARTY DISCLOSURES
Parties are considered to be related to the Group if the Group or the Company has the
ability, directly
(a) Identities of Relatedor indirectly,
Parties to control or jointly control the party or exercise significant
influence over the party in making financial and operating decisions, or vice versa, or where
the Group
Parties areorconsidered
the Company andrelated
to be the partyto the are subject
Group iftothe common
Groupcontrol. or the Company has the
ability, directly or indirectly, to control or jointly control the party or exercise significant
In addition
influence to the
over the information
party in making detailed elsewhere
financial in the financial
and operating decisions, statements,
or vice versa, the Group
or where has
related
the Group party relationships
or the Company and with the its directors,
party are subjectkey management
to commonpersonnel control. and entities within
the same group of companies.
In addition to the information detailed elsewhere in the financial statements, the Group has
(b) related
Significant partyRelated
relationships Partywith
Transactions
its directors, and Balances
key management personnel and entities within
the same group of companies.
Other than those disclosed elsewhere in the financial statements, the Group and the
Company also
(b) Significant Relatedcarried Party outTransactions
the followingand significant
Balances transactions with the related parties
during the financial years/periods:-
Other than those disclosed elsewhere in the financial statements, the Group and the
Company also carried out the Auditedfollowing AuditedsignificantAuditedtransactions
Audited withUnaudited
the related Audited parties
during the financial years/periods:- 1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
to to to to to to
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
RM RM RM RM RM RM
to to to to to to
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
Sales received or receivable from
RM RM RM RM RM RM
related parties 471,004 924,060 30,000 - - -
Proceeds from disposal of property,
Sales received or receivable from
plant and equipment to related parties - - 1,000 344,800 - -
related parties 471,004 924,060 30,000 - - -
Backcharged from related parties 525,095 180,265 65,689 2,321 2,321 -
Proceeds from disposal of property,
Purchases paid or payable to related
plant and equipment to related parties - - 1,000 344,800 - -
parties (706,218) (1,622,090) (2,467,293) (1,145,489) (536,239) -
Backcharged from related parties 525,095 180,265 65,689 2,321 2,321 -
Purchase of property, plant and equipment
Purchases paid or payable to related
to related parties - (1,124,000) (14,906) (52,000) (52,000) -
parties (706,218) (1,622,090) (2,467,293) (1,145,489) (536,239) -
Proceeds from disposal of properties to
Purchase of property, plant and equipment
a director - - - 999,200 - -
to related parties - (1,124,000) (14,906) (52,000) (52,000) -
Rental paid or payable to a director (36,400) (44,400) (74,400) (74,400) (24,800) (24,800)
Proceeds from disposal of properties to
a director - - - 999,200 - -
Rental paid or payable to a director (36,400) (44,400) (74,400) (74,400) (24,800) (24,800)
The significant outstanding balances of the related parties (including the allowance for
impairment loss made) together with their terms and conditions are disclosed in the
respective notes to the financial statements.
The significant outstanding balances of the related parties (including the allowance for
impairment loss made) together with their terms and conditions are disclosed in the
respective notes to the financial statements.
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MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
31. OPERATING SEGMENTS
Operating segments are prepared in a manner consistent with the internal reporting provided to
31. the directors asSEGMENTS
OPERATING its chief operating decision maker in order to allocate resources to segments
and to assess their performance. For management purposes, the Group is organised into
business units
Operating basedare
segments on their products
prepared provided.consistent with the internal reporting provided to
in a manner
the directors as its chief operating decision maker in order to allocate resources to segments
The Group
and to assessis organised into 2 main reportable
their performance. segmentspurposes,
For management as follows:-
the Group is organised into
business units based on their products provided.
(i) provision of underground utilities engineering services and solutions “U”
(ii) Group
The provision of substation
is organised into 2 mainengineering services as
reportable segments and solutions “S” and Trading and
follows:-
supplying “T”
(i) provision of underground utilities engineering services and solutions “U”
Assets, provision
(ii) liabilities and
of expenses
substationwhich are common
engineering and cannot
services be meaningfully
and solutions “S” andallocated
Tradingtoand
the
operating segments
supplying “T”are presented under unallocated items. Unallocated items comprise mainly
current tax assets, current tax liabilities, deferred tax assets and deferred tax liabilities.
Assets, liabilities and expenses which are common and cannot be meaningfully allocated to the
Transaction
operating between
segments arereportable
presentedsegments are carried
under unallocated outUnallocated
items. on agreeditems
termscomprise
betweenmainly
both
parties.tax
current Theassets,
effectscurrent
of suchtaxinter-segment transactions
liabilities, deferred are eliminated
tax assets on combination.
and deferred tax liabilities.
Transaction between reportable segments are carried out on agreed terms between both
parties. The effects of such inter-segment transactions are eliminated on combination.
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MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
31. OPERATING SEGMENTS (CONT’D)
31.1 BUSINESS SEGMENTS
Audited Audited Audited
31.1 BUSINESS SEGMENTS <------------------FYE 30 June------------------>
U S&T The Group
RM RM RM
<------------------FYE 30 June------------------>
2018 U S&T The Group
RM RM RM
Segment revenue 42,563,723 9,189,915 51,753,638
2018
Represented
Segment by:-
revenue 42,563,723 9,189,915 51,753,638
Revenue recognised at a point of time

Represented by:-
- Sales of goods - 821,750 821,750
Revenue
Revenuerecognised
recognisedatover
a point
timeof time
--Sales of goods
Construction services -
42,563,723 821,750
8,368,165 821,750
50,931,888
Revenue recognised over time 42,563,723 9,189,915 51,753,638

- Construction services 42,563,723 8,368,165 50,931,888
Results 42,563,723 9,189,915 51,753,638
Segment profit 9,012,161 1,212,909 10,225,070

Results
Finance costs (262,018) (17,518) (279,536)
Segment
Combinedprofit
profit before taxation 9,012,161 1,212,909 10,225,070
9,945,534
Finance costs (262,018) (17,518) (279,536)
Combined profit before

Segment profits taxation
includes the followings:- 9,945,534
Interest income (104,808) - (104,808)

Segment profits includes the followings:-
Interest expenses 26,945 5,110 32,055
Interest expenses on lease liabilities 235,073 12,408 247,481
Interest incomeon property, plant and equipment
Depreciation (104,808)
195,982 -
30,057 (104,808)
226,039
Interest expenses
Depreciation on right-of-use assets 26,945
1,294,089 5,110
69,215 32,055
1,363,304
Interest expenses
Impairment of trade onreceivables
lease liabilities 235,073
785,798 12,408
- 247,481
785,798
Depreciation on property,
Unrealised foreign exchange plantloss
and equipment 195,982
- 30,057
515 226,039
515
Depreciation on right-of-use assets
Gain on disposal of property, plant and equipment 1,294,089
(100,753) 69,215
(1,500) 1,363,304
(102,253)
Impairment of trade receivables 785,798 - 785,798
Unrealised foreign exchange loss - 515 515
Gain on disposal of property, plant and equipment (100,753) (1,500) (102,253)
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MN HOLDINGS BERHAD
31.1 BUSINESS SEGMENTS (CONT’D)
31.1 BUSINESS SEGMENTS (CONT’D) <------------------FYE 30 June------------------>
U S&T The Group
Audited
RM Audited
RM Audited
RM
<------------------FYE 30 June------------------>
Assets RM RM RM
2018
Segment assets 34,141,615 6,133,052 40,274,667
Assets
Unallocated
Segment assets:
assets 34,141,615 6,133,052 40,274,667
- right-of-use assets 4,842,728
- amount owing by directors 150,000
Unallocated assets:
-Combined
right-of-usetotal
assets
assets 4,842,728
45,267,395
- amount owing by directors 150,000
Liabilitiestotal assets
Combined 45,267,395
Segment liabilities 11,258,293 2,060,080 13,318,373

Liabilities
Unallocated
Segment liabilities
liabilities 11,258,293 2,060,080 13,318,373
- deferred tax liabilities 2,985,693
- lease liabilities 4,163,177
Unallocated liabilities
- term loans 548,411
- deferred tax liabilities 2,985,693
- current tax liabilities 2,182,501
- term loans 548,411
23,198,155
23,198,155
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MN HOLDINGS BERHAD
U S&T The Group
Audited
RM Audited
RM Audited
RM
<------------------FYE 30 June------------------>
RM RM RM
Segment revenue 48,011,584 17,664,618 65,676,202
2019
Represented
Segment by:-
revenue 48,011,584 17,664,618 65,676,202

Represented by:-
- Sales of goods - 761,890 761,890

Revenue recognised over time
- Sales of goods - 761,890 761,890

Results 48,011,584 17,664,618 65,676,202
Segment profit 5,487,560 3,720,038 9,207,598

Results
Finance costs (469,318) (25,578) (494,896)
Segment
Combinedprofit
profit before taxation 5,487,560 3,720,038 9,207,598
8,712,702
Finance costs (469,318) (25,578) (494,896)
Combined profit before taxation 8,712,702

Interest income (47,929) (9,876) (57,805)

Interest expense on lease liabilities 295,765 10,102 305,867
Interest income (47,929) (9,876) (57,805)
Depreciation on property, plant and equipment 431,285 34,139 465,424
Interest expenses
1,618,467 15,476
74,594 189,029
1,693,061
Interest expense
Impairment on lease
of trade liabilities
receivables 295,765
627,693 10,102- 305,867
627,693
Depreciation on property, plant
Unrealised foreign exchange loss and equipment 431,285- 34,139
478 465,424
478
Depreciation on right-of-use assets
Reversal of impairment of trade receivables 1,618,467- 74,594
(35,723) 1,693,061
(35,723)
Impairment of trade receivables 627,693 - 627,693
Reversal of impairment of trade receivables - (35,723) (35,723)
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MN HOLDINGS BERHAD
U S&T The Group
RM RM RM
<------------------FYE 30 June------------------>
U S&T The Group
2019
RM RM RM
Assets
2019
Segment assets 46,505,483 10,810,408 57,315,891
Assets
Unallocated
Segment assets:
assets 46,505,483 10,810,408 57,315,891
Unallocated assets:
Combined total assets 65,732,227
Combined 65,732,227

Liabilities
Unallocated
Segment liabilities
liabilities 22,684,041 4,208,404 26,892,445
- deferred tax liabilities 993,700
- term loans 3,349,326
38,344,608
38,344,608
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MN HOLDINGS BERHAD
U S&T The Group
Audited
RM Audited
RM Audited
RM
<------------------FYE 30 June------------------>
RM RM RM
Segment revenue 54,778,766 13,229,433 68,008,199
2020
Represented by:-
Segment revenue 54,778,766 13,229,433 68,008,199
Represented by:-
- Sales of goods - 117,530 117,530
Revenue
Revenuerecognised
recognisedatover
a point
timeof time
--Sales of goods
54,778,766 117,530
13,111,903 117,530
67,890,669

Results 54,778,766 13,229,433 68,008,199
Segment profit 6,967,663 1,366,423 8,334,086

Results
Finance costs (643,388) (32,759) (676,147)
Combinedprofit
Segment profit before taxation 6,967,663 1,366,423 7,657,939
8,334,086
Finance costs (643,388) (32,759) (676,147)
Segment profits
Combined includes
profit before the followings:-
taxation 7,657,939
Interest income (185,033) (10,267) (195,300)

Interest incomeon property, plant and equipment
Depreciation (185,033)
515,781 (10,267)
54,796 (195,300)
570,577
Interest expenses
2,344,370 23,022
86,063 303,660
2,430,433
Interest expenses
Impairment on receivables
of trade lease liabilities 362,750
546,207 9,737
894,227 372,487
1,440,434
Unrealised foreign plantgain
exchange and equipment 515,781- 54,796
(535) 570,577
(535)
Depreciation on right-of-use
Gain on disposal of property,assets
plant and equipment 2,344,370
(40,853) 86,063
- 2,430,433
(40,853)
Impairment of trade receivables 546,207 894,227 1,440,434
Unrealised foreign exchange gain - (535) (535)
Gain on disposal of property, plant and equipment (40,853) - (40,853)
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U S&T The Group
Audited
RM Audited
RM Audited
RM
<------------------FYE 30 June------------------>
Assets RM RM RM
2020
Segment assets 56,336,355 8,573,475 64,909,830
Assets
Unallocated
Segment assets:
assets 56,336,355 8,573,475 64,909,830
Unallocated assets:
Combined 72,139,519

Liabilities
Unallocated
Segment liabilities
liabilities 28,318,389 1,048,286 29,366,675
Unallocated
- term loansliabilities 3,054,779
- -deferred tax liabilities
current tax liabilities 297,167
1,860,268
39,960,428
39,960,428
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U S&T The Group
Audited
RM Audited
RM Audited
RM
<------------------FYE 30 June------------------>
RM RM RM
Segment revenue 92,781,548 22,417,961 115,199,509
2021
Represented by:-
Segment revenue 92,781,548 22,417,961 115,199,509
- Sales of goods
Represented by:- - 170,864 170,864
Revenue recognised
Revenue recognised atover timeof time
a point
-- Sales
Construction
of goodsservices 92,781,548
- 22,247,097
170,864 115,028,645
170,864

Results
92,781,548 22,417,961 115,199,509
Segment profit 7,745,016 3,537,449 11,282,466
Results
Finance costs (573,712) (70,526) (644,238)
Profit before taxation for reportable segments 10,638,228
Segment profit 7,745,016 3,537,449 11,282,466
Loss before taxation for non-reportable segment (100,930)
Finance costs (573,712) (70,526) (644,238)
Segment profits
Combined includes
profit before the followings:-
taxation 10,537,298
Interest income (45,823) (8,956) (54,779)
Depreciation
Interest incomeon property, plant and equipment 1,310,189
(45,823) 75,565
(8,956) 1,385,754
(54,779)
Depreciation
Interest on right-of-use assets
expenses 1,711,511
295,556 68,770
62,015 1,780,281
357,571
Impairment
Interest of trade
expenses onreceivables
lease liabilities 3,362,579
278,156 186,596
8,511 3,549,175
286,667
Unrealised foreign
Depreciation exchange
on property, plantloss
and equipment 1,310,189- 243
75,565 243
1,385,754
Gain on disposal
Depreciation of property,assets
on right-of-use plant and equipment 1,711,511- (30,999)
68,770 (30,999)
1,780,281
Gain on disposal
Impairment of receivables
of trade right-of-use assets (146,777)
3,362,579 (58,939)
186,596 (205,716)
3,549,175
Gain on disposal of property, plant and equipment - (30,999) (30,999)
Gain on disposal of right-of-use assets (146,777) (58,939) (205,716)
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MN HOLDINGS BERHAD
U S&T The Group
Audited
RM Audited
RM Audited
RM
<------------------FYE 30 June------------------>
U S&T The Group
2021
RM RM RM
Assets
2021
Segment assets 85,342,723 16,115,988 101,458,711
Assets
Segment assets 85,342,723 16,115,988 101,458,711

Unallocated assets:
- current tax assets 201,614
- deferred tax assets 1,711,630
Unallocated
- right-of-useassets:
assets 5,408,236
- current tax assets 201,614
-Combined totalassets
deferred tax assets 108,780,191
1,711,630
Liabilities
Liabilities

Unallocated
- current tax liabilities
liabilities 2,278,520
- accruals 6,000
2,278,520
- accruals 6,000
69,532,419
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MN HOLDINGS BERHAD
31.1 BUSINESS SEGMENTS (CONT’D) Audited Audited Audited

<------------------FPE 31 October------------------>
U S&T The Group
Audited
RM Audited
RM Audited
RM
<------------------FPE 31 October------------------>
RM RM RM
Segment revenue 25,735,361 8,246,018 33,981,379
2021
Represented by:-
Segment revenue 25,735,361 8,246,018 33,981,379
- Sales of goods
Represented by:- - 34,384 34,384
Revenue recognised at over time of time

a point
Construction
- Sales of goodsservices 25,735,361
- 8,211,634
34,384 33,946,995
34,384

Results
25,735,361 8,246,018 33,981,379
Segment profit 2,668,404 1,273,474 3,941,878
Finance costs
Results (101,883) (37,123) (139,006)
Profit before
Segment taxation for reportable segments
profit 2,668,404 1,273,474 3,802,872
3,941,878
Loss before
Finance costs taxation for non-reportable segment (101,883) (37,123) (73,352)
(139,006)
Interest income (12,377) (1,543) (13,920)
Interest expenses
Segment profits includes the followings:- 39,371 34,148 73,519
Depreciation
Interest incomeon property, plant and equipment 504,357
(12,377) 23,620
(1,543) 527,977
(13,920)
Depreciation
Interest on right-of-use assets
expenses 555,372
39,371 29,196
34,148 584,568
73,519
Impairment
Interest of tradeonreceivables
expenses lease liabilities 240,071
62,512 174,582
2,975 414,653
65,487
Unrealised foreign
Depreciation exchange
on property, plantloss
and equipment -
504,357 23,6204 527,9774
Depreciation on right-of-use assets 555,372 29,196 584,568
Impairment of trade receivables 240,071 174,582 414,653
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31.1 BUSINESS SEGMENTS (CONT’D) <------------------FYE 31 October------------------>
U S&T The Group
RM RM RM
<------------------FYE 31 October------------------>
U S&T The Group
2021
RM RM RM
Assets
2021
Segment assets 84,502,384 16,190,142 100,692,526
Assets
Segment
Unallocatedassets
assets: 84,502,384 16,190,142 100,692,526
Unallocated assets:
-Combined totalassets
deferred tax assets 107,185,984
1,988,106
Liabilities
Liabilities
Segment
Unallocatedliabilities
liabilities 51,209,675 5,351,589 56,561,264
Unallocated
- current tax liabilities
liabilities 2,185,364
- term loans 64,894,216
2,715,070
64,894,216
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Unaudited Unaudited Unaudited
31.1 BUSINESS SEGMENTS (CONT’D) <------------------FPE 31 October------------------>
U S&T The Group
Unaudited
RM Unaudited
RM Unaudited
RM
<------------------FPE 31 October------------------>
RM RM RM
Segment revenue 23,719,228 6,252,709 29,971,937
2020
Represented by:-
Segment revenue 23,719,228 6,252,709 29,971,937
Represented by:-
- Sales of goods - 122,004 122,004
Revenue
Revenue recognised
recognisedatover
a point
timeof time
--Sales of goods
23,719,228 122,004
6,130,705 122,004
29,849,933

Results 23,719,228 6,252,709 29,971,937
Segment profit 1,361,836 914,744 2,276,580

Results
Finance costs (148,622) (15,348) (163,970)
Combinedprofit
Segment profit before taxation 1,361,836 914,744 2,112,610
2,276,580
Finance costs (148,622) (15,348) (163,970)
Segment profits
Combined includestaxation
profit before the followings:- 2,112,610
Interest income (1,469) (2,826) (4,295)

Interest income
Depreciation on property, plant and equipment (1,469)
366,478 (2,826)
20,489 (4,295)
386,967
Interest expenses
603,982 14,111
25,182 74,879
629,164
Interest expenses
Impairment onreceivables
of trade lease liabilities 87,854
1,211,976 1,237
872 89,091
1,212,848
Unrealised foreign exchange plantloss
and equipment 366,478
- 20,489
238 386,967
238
Depreciation on right-of-use assets 603,982 25,182 629,164
Impairment of trade receivables 1,211,976 872 1,212,848
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MN HOLDINGS BERHAD
Unaudited Unaudited Unaudited
31.1 BUSINESS SEGMENTS (CONT’D) <------------------FYE 31 October------------------>
U S&T The Group
Unaudited
RM Unaudited
RM Unaudited
RM
<------------------FYE 31 October------------------>
Assets RM RM RM
2020
Segment assets 61,317,372 10,976,501 72,293,873
Assets
Segment
Unallocatedassets
assets: 61,317,372 10,976,501 72,293,873
- deferred tax assets 939,453
Unallocated assets:
Combined totalassets
939,453
-Liabilities
right-of-use assets 5,686,903
Liabilities
Segment
Unallocatedliabilities
liabilities 30,798,366 2,624,554 33,422,920
Unallocated
- term loans 45,180,200
4,812,144
45,180,200
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MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TOBERHAD
NOTES
31.TO THE COMBINED
OPERATING FINANCIAL
SEGMENTS STATEMENTS (CONT’D)
(CONT’D)
31. OPERATING
31.2 SEGMENTS
MAJOR (CONT’D)
CUSTOMERS
31.2 MAJOR CUSTOMERS

The following are the major customers with revenue equal to or more than 10% of the Group’s total revenue:-
The following are the major customers with<------------------------------------------------------------------

revenue equal to or more than 10% of theRevenue Group’s total revenue:-
----------------------------------------------------------------> Segment
<------------------------------------------------------------------ Revenue ----------------------------------------------------------------> Segment
1.7.2017 1.7.2018 1.7.2019 1.7.2020 1.7.2020 1.7.2021
to to to to to to
1.7.201730.6.2018 1.7.2018 30.6.2019 1.7.2019 30.6.2020 1.7.2020 30.6.2021 1.7.2020 31.10.2020 1.7.202131.10.2021
30.6.2018 30.6.2019 30.6.2020 30.6.2021 31.10.2020 31.10.2021
RM RM RM RM RM RM
Customer A 8,680,287 31,609,973 27,292,534 45,682,035 8,888,191 16,808,103 U and S & T
Customer B 6,823,987 - - - - - U and S & T
Customer A
Customer C 8,680,287 5,330,217 31,609,973 - 27,292,534 - 45,682,035 - 8,888,191 - 16,808,103 U- and SU& T
Customer B
Customer D 6,823,987 - - - - - -
11,978,471 - 3,393,312 - U- and SS&&TT
Customer C 5,330,217 - - - - - U
Customer D -
20,834,491 -
31,609,973 -
27,292,534 11,978,47157,660,506 3,393,312 12,281,503 - S&T
16,808,103
20,834,491 31,609,973 27,292,534 57,660,506 12,281,503 16,808,103

U - Underground utilities engineering services and solutions
S & T - Substation engineering services and solutions and Trading and supplying
U - Underground utilities engineering services and solutions
S & T - Substation engineering services and solutions and Trading and supplying
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MN HOLDINGS BERHAD
32. CAPITAL COMMITMENTS
32. CAPITAL COMMITMENTS
RM RM RM RM RM RM
Purchase of property, plant30 June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021
and equipment RM 3,141,313 RM 695,000 RM - RM - RM - RM -
Purchase of property, plant

and equipment 3,141,313 695,000 - - - -
33. CONTINGENT LIABILITY
No provisions are recognised on the following matter as it is not probable that a future sacrifice
33. of economic LIABILITY
CONTINGENT benefits will be required or the amount is not capable of reliable measurement:-
No provisions are recognised Audited Audited matterAudited

on the following as it is not Audited
probable thatUnaudited Audited
a future sacrifice
of economic benefits will be required
30 June 2018 30orJunethe2019amount30 Juneis 2020
not capable of reliable
30 June 2021 measurement:-
31 October 2020 31 October 2021
RM RM RM RM RM RM
Performance guarantee 30 June 2018 30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021
extended to third parties RM 401,288 RM 794,354 RM 2,105,371 RM 3,357,171 RM 3,440,146 RM 3,651,770
Performance guarantee
extended to third parties 401,288 794,354 2,105,371 3,357,171 3,440,146 3,651,770
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MN HOLDINGS BERHAD
34. FINANCIAL INSTRUMENTS
The Group’s activities are exposed to a variety of market risks (including foreign currency risk,
34. interest rate
FINANCIAL risk and equity price risk), credit risk and liquidity risk. The Group’s overall financial
INSTRUMENTS
risk management policy focuses on the unpredictability of financial markets and seeks to
The minimise potential adverse
Group’s activities effects
are exposed to on the Group’s
a variety financial
of market performance.
risks (including foreign currency risk,
interest rate risk and equity price risk), credit risk and liquidity risk. The Group’s overall financial
risk 34.1 FINANCIAL
management policyRISK MANAGEMENT
focuses POLICIES of financial markets and seeks to
on the unpredictability
minimise potential adverse effects on the Group’s financial performance.
The Group’s policies in respect of major areas of treasury activity are as follows:
34.1 FINANCIAL RISK MANAGEMENT POLICIES
(a) Market Risk
The Group’s policies in respect of major areas of treasury activity are as follows:
(i) Foreign Currency Risk
(a) Market Risk
The Group is exposed to foreign currency risk on transactions and balances that
are denominated
(i) Foreign Currency Riskin currencies other than the respective functional currencies of
entities within the Company. The currency giving rise to this risk is primarily
The United States
Group is Dollar
exposed (“USD”).
to foreign Foreignrisk
currency currency risk is monitored
on transactions closely
and balances on an
that
ongoing basisintocurrencies
are denominated ensure that the than
other net exposure is at an
the respective acceptable
functional level. of
currencies
entities within the Company. The currency giving rise to this risk is primarily
United States Dollar (“USD”). Foreign currency risk is monitored closely on an
ongoing basis to ensure that the net exposure is at an acceptable level.
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MN HOLDINGS BERHAD
34. FINANCIAL INSTRUMENTS (CONT’D)
34.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)
(a) Market Risk (Cont’d)
(i) Foreign Currency Risk (Cont’d)
The Group’s exposure to foreign currency risk (a currency which is other than the
functional
(i) Foreign currency
Currency of the Company) based on the carrying amounts of the
Risk (Cont’d)
financial instruments at the end of the reporting period is summarised below:-
The Group’s exposure to foreign currency risk (a currency which is other than the
Foreign Currency
functional currency Exposure
of the Company) based on the carrying amounts of the
financial instruments at the end of the reporting period is summarised below:-
United
Foreign Currency Exposure States Ringgit
Dollar Malaysia Total
Audited United
RM RM RM
States Ringgit
30.6.2018 Dollar Malaysia Total
Audited RM RM RM
Financial Assets
30.6.2018
Trade receivables - 7,924,858 7,924,858
Other receivables - 194,011 194,011
Financial Assets
Amount owing by directors - 150,000 150,000
Fixed deposit with licensed banks - 903,505 903,505
Cash and bank balances 6,335 950,854 957,189
Amount owing by directors - 150,000 150,000
Fixed deposit with licensed banks -6,335 10,123,228
903,505 10,129,563
903,505
Cash and bank balances 6,335 950,854 957,189
30.6.2018 6,335 10,123,228 10,129,563
Financial Liabilities
30.6.2018
Lease liabilities - 4,163,177 4,163,177
Term loans - 548,411 548,411
Trade payables - 10,859,400 10,859,400
Other payables and accruals - 1,190,344 1,190,344
Term loans - 548,411 548,411
Trade payables - - 16,761,332
10,859,400 16,761,332
10,859,400
Net financial assets 6,335 (6,638,104) (6,631,769)
Less: Net financial assets denominated - 16,761,332 16,761,332
in the Company's functional currency - 6,638,104 6,638,104
Currency
Less: Exposure
Net financial assets denominated 6,335 - 6,335
Currency Exposure 6,335 - 6,335
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MN 34.
HOLDINGS BERHAD
FINANCIAL INSTRUMENTS (CONT’D)
NOTES TO34.1
THE COMBINED FINANCIAL
FINANCIAL RISK STATEMENTS
MANAGEMENT (CONT’D)
POLICIES (CONT’D)
34. FINANCIAL(a)INSTRUMENTS
Market Risk (Cont’d)
(CONT’D)
34.1 (i)RISK
FINANCIAL Foreign Currency Risk
MANAGEMENT (Cont’d)(CONT’D)
POLICIES
(a) Foreign
Market Risk Currency Exposure (Cont’d)
(Cont’d)
(i) Foreign Currency Risk (Cont’d) United

States Ringgit
Foreign Currency Exposure (Cont’d) Dollar Malaysia Total
Audited RM RM RM
United
States Ringgit
30.6.2019
Audited RM RM RM
Financial Assets
30.6.2019
Fixed deposit with licensed banks - 1,712,320 1,712,320
Financial Assets
Cash and bank balances 22,186 3,180,530 3,202,716
18,177,393 4,600
18,199,579
30.6.2019
22,186 18,177,393 18,199,579
30.6.2019
Term loans - 3,349,326 3,349,326
Trade payables - 19,104,241 19,104,241
Bankers' acceptances - 2,248,000 2,248,000
Term loans - 3,349,326 3,349,326
Bank overdrafts - 77,680 77,680
Trade payables - 19,104,241 19,104,241
Other payables and accruals - - 4,335,817
34,080,494 4,335,817
34,080,494
Bank overdrafts - 77,680 77,680
Less: Net financial assets denominated
in the Company's functional currency - - 34,080,494
15,903,10134,080,494
15,903,101
Net financial
Currencyassets
Exposure 22,18622,186(15,903,101) - (15,880,915)
22,186
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MN HOLDINGS BERHAD
Foreign Currency Exposure (Cont’d)
United
Foreign Currency Exposure (Cont’d) States Ringgit
United
Audited RM RM RM
States Ringgit
30.6.2020
Audited RM RM RM
Financial Assets
30.6.2020
Financial Assets
Fixed deposit with licensed banks -
9,639 2,259,878
14,677,093 2,259,878
14,686,732
30.6.2020 9,639 14,677,093 14,686,732
30.6.2020
Term loans - 3,054,779 3,054,779
Trade payables - 23,107,062 23,107,062
Term loans - 3,054,779 3,054,779
Trade payables - 23,107,062 23,107,062
Trust receipts - 504,000 504,000
Bankers' acceptances -- 1,573,000
35,053,134 1,573,000
35,053,134
Trust receipts - 504,000 504,000
Less: Net financial assets denominated - 35,053,134 35,053,134
Less: Net Exposure
Currency financial assets denominated 9,639 - 9,639
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MN HOLDINGS BERHAD
United
United
Audited RM RM RM
States Ringgit
30.6.2021
Audited RM RM RM
Financial Assets
30.6.2021
Financial Assets
Cash and bank balances 1,311
1,311 41,094,652
8,351,669 41,095,963
8,352,980
30.6.2021 1,311 41,094,652 41,095,963
30.6.2021
Term loans - 3,019,684 3,019,684
Trade payables - 42,227,603 42,227,603
Term loans - 3,019,684 3,019,684
Trade payables - 42,227,603 42,227,603
Trust receipt - 1,644,100 1,644,100
54,874,305 2,490,000
54,874,305
Trust receipt - 1,644,100 1,644,100
- 54,874,305 54,874,305
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United
United
Audited RM RM RM
States Ringgit
31.10.2021
Audited RM RM RM
Financial Assets
31.10.2021
Financial Assets
1,307 39,763,147
8,671,424 39,764,454
8,672,731
31.10.2021
1,307 39,763,147 39,764,454
31.10.2021
Term loans - 2,715,070 2,715,070
Trade payables - 43,165,541 43,165,541
Term loans - 2,715,070 2,715,070
Trade payables - 43,165,541 43,165,541
Trust receipt - 241,846 241,846
52,236,899 1,290,000
52,236,899
Trust receipt - 241,846 241,846
- 52,236,899 52,236,899
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United
United
Unaudited RM RM RM
States Ringgit
31.10.2020
Unaudited RM RM RM
Financial Assets
31.10.2020
Financial Assets
3,066 19,346,079 19,349,145
31.10.2020
3,066 19,346,079 19,349,145
31.10.2020
Term loans - 4,812,144 4,812,144
Trade payables - 26,285,445 26,285,445
Other payables and accruals - 978,004 978,004
Term loans - 4,812,144 4,812,144
Trade payables - 26,285,445 26,285,445
Other payables and accruals -- 978,004
39,201,328 978,004
39,201,328
- 39,201,328 39,201,328
Less: Net Exposure
Currency financial assets denominated 3,066 - 3,066
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MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
TO THE COMBINED
NOTESFINANCIAL
34. FINANCIAL
INSTRUMENTS STATEMENTS (CONT’D)
(CONT’D)
34. FINANCIAL
34.1 INSTRUMENTS
FINANCIAL RISK MANAGEMENT
(CONT’D)POLICIES (CONT’D)
34.1 FINANCIAL
(a) MarketRISK
RiskMANAGEMENT
(Cont’d) POLICIES (CONT’D)
(a) Market
(i) Foreign
Risk Currency
(Cont’d) Risk (Cont’d)
(i) Foreign
Foreign Currency
Currency Risk
Risk (Cont’d)
Sensitivity Analysis
Foreign Currency Risk Sensitivity AnalysisAudited Audited Audited Audited Unaudited Audited
Audited
RM Audited
RM Audited
RM Audited
RM Unaudited
RM Audited
RM
Effects on Profit After Taxation RM RM RM RM RM RM
USD/RM - strengthened by 5% 241 843 366 50 117 50
Effects on Profit After Taxation
- weakened by 5% (241) (843) (366) (50) (117) (50)
Effects on Other Comprehensive
- weakened by 5%Income (241) (843) (366) (50) (117) (50)
Effects on Other Comprehensive
- weakened by 5%Income (241) (843) (366) (50) (117) (50)
- weakened by 5% (241) (843) (366) (50) (117) (50)
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MN HOLDINGS BERHAD
(ii) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a
financialRate
(ii) Interest instrument
Risk will fluctuate because of changes in market interest rates.
The Group’s exposure to interest rate risk arises mainly from long-term
borrowings
Interest ratewithrisk variable
is the riskrates.
thatThethe Group’s
fair valuepolicy is to cash
or future obtainflows
the most
of a
favourable
financial interest rates
instrument available
will fluctuate and byof maintaining
because a balanced
changes in market portfolio
interest rates.
mix ofGroup’s
The fixed and floating rate
exposure borrowings.
to interest rate risk arises mainly from long-term
borrowings with variable rates. The Group’s policy is to obtain the most
favourable
The Group’sinterest rates available
fixed deposits and by
with licensed maintaining
banks a balanced
are carried portfolio
at amortised cost.
Therefore,
mix of fixedthey are not rate
and floating subject to interest rate risk as defined in MFRS 7
borrowings.
since neither the carrying amount nor the future cash flows will fluctuate
because
The Group’sof a fixed
change in market
deposits withinterest
licensedrates.
banks are carried at amortised cost.
Therefore, they are not subject to interest rate risk as defined in MFRS 7
The
sinceGroup’s
neitherexposure to interest
the carrying amount rate
norrisk
thebased oncash
future the carrying amounts
flows will of
fluctuate
because
the of a instruments
financial change in marketat theinterest
end of rates.
the reporting periods is disclosed in
The Group’s exposure to interest rate risk based on the carrying amounts of
the financial instruments at the end of the reporting periods is disclosed in
Page 106
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403
Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
NOTES
34. TO THE COMBINED
FINANCIAL FINANCIAL
(CONT’D)
34. 34.1 FINANCIAL
INSTRUMENTS (CONT’D)POLICIES (CONT’D)
34.1 FINANCIAL
(a) MarketRISK
RiskMANAGEMENT
(Cont’d) POLICIES (CONT’D)
(a) Market
(ii) Interest (Cont’d)
Risk Rate Risk (Cont’d)
(ii) Interest Rate Risk Sensitivity

(Cont’d) Analysis
Interest Rate Risk

The following tableSensitivity
details theAnalysis
sensitivity analysis to a reasonably possible change in the interest rates at the end of the reporting
period, with all other variables held constant:-
The following table details the sensitivity analysis to a reasonably possible change in the interest rates at the end of the reporting
period, with all other variables held constant:-Audited Audited Audited Audited Unaudited Audited
Audited
(Increase)/ Audited
(Increase)/ Audited
(Increase)/ Audited
(Increase)/ Unaudited
(Increase)/ Audited
(Increase)/
June 2018
30Decrease June 2019
30Decrease 31 October
Decrease2020 31 October
Decrease2021
(Increase)/
RM (Increase)/
RM (Increase)/
RM (Increase)/
RM (Increase)/
RM (Increase)/
RM
Decrease Decrease Decrease Decrease Decrease Decrease
Effects On Profit After Taxation and RM RM RM RM RM RM
Other Comprehensive Income
Effects On Profit After Taxation and
Other Comprehensive
Increase Income
of 100 basis points (35,808) (63,192) (64,116) (54,471) (70,960) (46,722)
Decrease of 100 basis points 35,808 63,192 64,116 54,471 70,960 46,722
Increase of 100 basis points (35,808) (63,192) (64,116) (54,471) (70,960) (46,722)
Decrease of 100 basis points 35,808 63,192 64,116 54,471 70,960 46,722
Page 107
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
(iii) Equity Price Risk
The Group does not have any quoted investments and hence, is not exposed
to equity
(iii) Equity price
Price risk.
Risk
(b) The
Credit Group does not have any quoted investments and hence, is not exposed
Risk
to equity price risk.
The Group’s exposure to credit risk, or the risk of counterparties defaulting, arises
(b) Credit Risk
mainly from trade and other receivables. The Group manages its exposure to
credit risk by the application of credit approvals, credit limits and monitoring
The Group’son
procedures exposure to credit
an ongoing risk,
basis. or other
For the risk of counterparties
financial defaulting,
assets (including arises
cash and
mainlybalances),
bank from tradetheand other
Group receivables.
minimises creditThe
riskGroup manages
by dealing its exposure
exclusively with highto
risk by
credit rating the application of credit approvals, credit limits and monitoring
counterparties.
procedures on an ongoing basis. For other financial assets (including cash and
bank balances),
(i) Credit the Group minimises
Risk Concentration Profile credit risk by dealing exclusively with high
credit rating counterparties.
The Group’s major concentration of credit risk relates to the amounts owing
(i) Credit
by threeRisk
(3) Concentration Profile(3), 30.6.2021 - two (2), 30.6.2020 - three (3),
(31.10.2020 - three
30.6.2019 - one (1), 30.6.2018 - four (4)) customers which constituted
The Group’s major
approximately 69% concentration
(31.10.2020 - of credit
58%, risk relates
30.6.2021 to the
- 83%, amounts- owing
30.6.2020 42%,
by three (3)- (31.10.2020
30.6.2019 38%, 30.6.2018- three (3), 30.6.2021
- 50%) of its trade- two (2), 30.6.2020
receivables at the -end
three
of (3),
the
30.6.2019period.
reporting - one (1), 30.6.2018 - four (4)) customers which constituted
approximately 69% (31.10.2020 - 58%, 30.6.2021 - 83%, 30.6.2020 - 42%,
30.6.2019 - 38%, 30.6.2018 - 50%) of its trade receivables at the end of the
reporting period.
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405
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
(b) Credit Risk (Cont’d)
(ii) Exposure to Credit Risk
At the end of the reporting period, the maximum exposure to credit risk is
(ii) represented
Exposure to Credit
by theRiskcarrying amount of each class of financial assets
recognised in the statement of financial position of the Group after deducting
At the
any end of the
allowance reporting period,
for impairment losses the maximum
(where exposure to credit risk is
applicable).
represented by the carrying amount of each class of financial assets
(iii) recognised
Assessmentinofthe statementLosses
Impairment of financial position of the Group after deducting
any allowance for impairment losses (where applicable).
At each reporting date, the Group assesses whether any of financial assets
(iii) Assessment
at amortised of
costImpairment Losses
and contract assets are credit impaired.
At each
The gross reporting
carryingdate, the Group
amounts assesses
of those whether
financial assetsany areofwritten
financial offassets
when
at amortised
there cost and contract
is no reasonable expectationassets are credit(i.e.
of recovery impaired.
the debtor does not have
assets or sources of income to generate sufficient cash flows to repay the
The
debt)gross
despite carrying
they are amounts of those
still subject financial assets
to enforcement are written off when
activities.
there is no reasonable expectation of recovery (i.e. the debtor does not have
assetsReceivables
Trade or sources of andincome
Contract to Assets
generate sufficient cash flows to repay the
debt) despite they are still subject to enforcement activities.
The Group applies the simplified approach to measure expected credit
Trade
losses Receivables
using a lifetimeand Contract
expectedAssets credit loss allowance for all trade
receivables and contract assets.
The Group applies the simplified approach to measure expected credit
losses
To usingthea expected
measure lifetime credit
expectedlosses,credit
tradeloss allowance
receivables for all related
(including trade
receivables
parties) andand contract
contract assets.
assets have been grouped based on shared credit risk
characteristics and the days past due. The contract assets relate to unbilled
To measure
work in progressthe expected
and havecredit losses, the
substantially trade receivables
same (including related
risk characteristics as the
parties)receivables
trade and contract for assets
the same have types
been grouped basedTherefore,
of contracts. on sharedthe credit risk
Group
characteristics
concluded that and the days loss
the expected pastrates
due. for
Thetrade
contract assets are
receivables relate to unbilled
a reasonable
work in progress
approximation andloss
of the have substantially
rates the same
for the contract risk characteristics as the
assets.
trade receivables for the same types of contracts. Therefore, the Group
concluded
For certainthat the customers
large expected loss rates for trade
or customers withreceivables
a high risk areofa default,
reasonable the
approximation
Group assesses of the risk
loss ofrates
lossfor
of the contract
each customerassets.
individually based on their
financial information, past trends of payments and external credit rating,
For certain
where large customers or customers with a high risk of default, the
applicable.
Group assesses the risk of loss of each customer individually based on their
financial
Also, the information,
Group considers past anytrends
tradeofreceivables
payments having
and external
financial credit rating,
difficulty or
where
in applicable.
default with significant balances outstanding for more than 120 days are
deemed credit impaired and assesses for their risk of loss individually.
Also, the Group considers any trade receivables having financial difficulty or
in default
The expectedwith loss
significant
rates are balances
based outstanding
on the payment for more thanof120
profiles salesdaysoverare
a
deemedof
period credit
18 impaired
months and andassesses for their risk ofhistorical
the corresponding loss individually.
credit losses
experienced within this period. The historical loss rates are adjusted to reflect
The expected
current loss rates areinformation
and forward-looking based on the on payment
macroeconomicprofiles factors
of salesaffecting
over a
period
the of of18
ability the months
customers and the their
to settle corresponding
debts. historical credit losses
experienced within this period. The historical loss rates are adjusted to reflect
current and forward-looking information on macroeconomic factors affecting
the ability of the customers to settle their debts.
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
(iii) Assessment of Impairment Losses (Cont’d)
Trade Receivables and Contract Assets (Cont’d)
For the FYE 30 June 2019, FYE 30 June 2020, FYE 30 June 2021, FPE 31
October 2021 and FPE
Trade Receivables 31 October
and Contract 2020,(Cont’d)
Assets the information about the exposure
to credit risk and the loss allowances calculated under MFRS 9 (FYE 30
June 2018
For the FYE- MFRS
30 June139) forFYE
2019, both30
trade
Junereceivables
2020, FYEand contract
30 June assets
2021, FPEare 31
summarised
October 2021below:-
and FPE 31 October 2020, the information about the exposure
to credit risk and the loss allowances calculated under MFRS 9 (FYE 30
June 2018 - MFRS 139) for both trade receivables
Gross and contract assets
Individual are
Carrying
summarised below:- Amount Impairment Amount
RM RM RM
Gross Individual Carrying
Audited Amount Impairment Amount
30.6.2018 RM RM RM
Audited
Current (not past due) 3,382,569 - 3,382,569
130.6.2018
to 30 days past due 2,083,246 - 2,083,246
31 to 60 days past due 861,153 (628,384) 232,769
Current
61 to 90(not
dayspast
pastdue)
due 3,382,569
699,358 -- 3,382,569
699,358
191toto30120
days past duedue
days past 2,083,246
313,919 -
(157,414) 2,083,246
156,505
31
more to 60 days
than 120past
daysdue 861,153
1,370,411 (628,384)
- 232,769
1,370,411
61 to 90 days past due 699,358 - 699,358
Trade
91 to 120 Receivables
days past due 8,710,656
313,919 (785,798)
(157,414) 7,924,858
156,505
Contract
more thanAssets
120 days 22,315,748
1,370,411 -- 22,315,748
1,370,411
Trade Receivables 31,026,404

8,710,656 (785,798)
(785,798) 30,240,606
7,924,858
Contract Assets 22,315,748 - 22,315,748
Gross Individual
31,026,404 Collective
(785,798) Carrying
30,240,606
Amount Impairment Impairment Amount
RM RM RM RM
Gross Individual Collective Carrying
Audited Amount Impairment Impairment Amount
30.6.2019 RM RM RM RM
Audited
Current (not past due) 7,211,183 - (170,704) 7,040,479
30.6.2019
1 to 30 days past due 538,578 - (131,357) 407,221
31 to 60 days past due 1,403,793 (230,000) (89,320) 1,084,473
Current
61 to 90(not
dayspast
pastdue)
due 7,211,183
716,409 - (170,704)
(134,870) 7,040,479
581,539
191toto30120
days past
days duedue
past 538,578
520,004 - (131,357)
(78,600) 407,221
441,404
31
moreto 60 days
than 120past
daysdue 1,403,793
5,055,060 (230,000)
(891,837) (89,320)
(438,396) 1,084,473
3,724,827
61 to 90 days past due 716,409 - (134,870) 581,539
Trade Receivables 15,445,027 (1,121,837) (1,043,247) 13,279,943
91 to 120 days past due 520,004 - (78,600) 441,404
Contract Assets 27,881,908 - - 27,881,908
more than 120 days 5,055,060 (891,837) (438,396) 3,724,827
43,326,935 (1,121,837) (1,043,247) 41,161,851
Contract Assets 27,881,908 - - 27,881,908
43,326,935 (1,121,837) (1,043,247) 41,161,851

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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
RM RM RM RM
30.6.2020 RM RM RM RM
Audited
30.6.2020
1 to 30 days past due 927,252 - (58,203) 869,049
31 to 60 days past due 31,870 - (441) 31,429
Current
61 to 90(not
dayspast
pastdue)
due 2,694,749
631,137 -- (249,655)
(7,036) 2,445,094
624,101
191toto30120
days past duedue
days past 927,252
385,137 -- (58,203)
(28,031) 869,049
357,106
31
moreto 60
thandays
120past
daysdue 31,870
7,558,466 -
(2,189,085) (441)
(1,073,067) 31,429
4,296,314
61 to 90 days past due 631,137 - (7,036) 624,101
Trade
91 Receivables
to 120 days past due 12,228,611
385,137 (2,189,085)
- (1,416,433)
(28,031) 8,623,093
357,106
more thanAssets
Contract 120 days 37,566,743
7,558,466 -
(2,189,085) -
(1,073,067) 37,566,743
4,296,314

12,228,611 (2,189,085)
(2,189,085) (1,416,433)
(1,416,433) 46,189,836
8,623,093
Contract Assets 37,566,743 - - 37,566,743
Gross
49,795,354 Individual
(2,189,085) Collective
(1,416,433) Carrying
46,189,836
RM RM RM RM
Audited
RM RM RM RM
30.6.2021
Audited
30.6.2021
1 to 30 days past due 10,247,854 - (50,209) 10,197,645
31 to 60 days past due 2,864,461 - (19,911) 2,844,550
61 to 90 days past due 4,280,953 - (10,731) 4,270,222
1 to 30 days past due 10,247,854 - (50,209) 10,197,645
91 to 120 days past due 2,453,123 - (18,695) 2,434,428
31 to 60 days past due 2,864,461 - (19,911) 2,844,550
more than 120 days 6,662,937 (3,548,662) (2,127,472) 986,803
61 to 90 days past due 4,280,953 - (10,731) 4,270,222
91 to 120 days past due 2,453,123 - (18,695) 2,434,428
more than 120 days 6,662,937 (3,548,662) (2,127,472) 986,803
Contract Assets 50,411,933 - (1,349,004) 49,062,929

85,984,949 (3,548,662)
(3,548,662) (2,257,027)
(3,606,031) 29,767,327
78,830,256
Contract Assets 50,411,933 - (1,349,004) 49,062,929
85,984,949 (3,548,662) (3,606,031) 78,830,256
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Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
(b) Credit Risk (Cont’d)s
(b) Credit Risk (Cont’d)s
RM RM RM RM
31.10.2021 RM RM RM RM
Audited
31.10.2021
1 to 30 days past due 10,335,200 - (315,710) 10,019,490
31 to 60 days past due 394,614 - (26,785) 367,829
Current
61 to 90(not
dayspast
pastdue)
due 7,049,841
78,730 -- (278,705)
(4,174) 6,771,136
74,556
191toto30120
days past duedue
days past 10,335,200
3,692,310 -- (315,710)
(36,749) 10,019,490
3,655,561
31 to 60
more thandays
120past
daysdue 394,614
11,951,399 -
(3,769,353) (26,785)
(2,084,163) 367,829
6,097,883
61 to 90 days past due 78,730 - (4,174) 74,556
91 to 120
Trade days past due
Receivables 3,692,310
33,502,094 -
(3,769,353) (36,749)
(2,746,286) 3,655,561
26,986,455
more than
Contract Assets120 days 11,951,399
50,283,469 (3,769,353)
- (2,084,163)
(1,053,707) 6,097,883
49,229,762

83,785,563 (3,769,353)
(3,769,353) (2,746,286)
(3,799,993) 26,986,455
76,216,217
Contract Assets 50,283,469 - (1,053,707) 49,229,762
Gross
83,785,563 Individual
(3,769,353) Collective
(3,799,993) Carrying
76,216,217
RM RM RM RM
31.10.2020 RM RM RM RM
Audited
1 to 30 days past due
31.10.2020 5,181,901 - (21,675) 5,160,226
31 to 60 days past due 1,008,557 - (1,557) 1,007,000
61 to 90 (not
Current dayspast
pastdue)
due 489,160
3,143,993 - (4,600)
(7,771) 484,560
3,136,222
91
1 toto30120 days
days past
past duedue 258,309
5,181,901 - (4,471)
(21,675) 253,838
5,160,226
more
31 than
to 60 120past
days daysdue 7,170,855
1,008,557 (3,427,232)
- (621,209)
(1,557) 3,122,414
1,007,000
61 to 90 days past due 489,160 - (4,600) 484,560
Trade
91 Receivables
to 120 days past due 17,252,775
258,309 (3,427,232)
- (661,283)
(4,471) 13,164,260
253,838
Contract
more thanAssets
120 days 40,069,533
7,170,855 -
(3,427,232) (729,851)
(621,209) 39,339,682
3,122,414

17,252,775 (3,427,232) (1,391,134)
(661,283) 52,503,942
13,164,260
Contract Assets 40,069,533 - (729,851) 39,339,682
The movements in the loss allowances

57,322,308 in(3,427,232)
respect of trade receivables
(1,391,134) and
52,503,942
contract assets are disclosed in Notes 7 and 9 to the combined financial
statements respectively.
The movements in the loss allowances in respect of trade receivables and
contract assets are disclosed in Notes 7 and 9 to the combined financial
statements respectively.
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
Other Receivables
The Group applies the 3-stage general approach to measuring expected credit
losses for its other receivables. Under this approach, the Group assesses
Other Receivables
whether there is a significant increase in credit risk on the receivables by
comparing
The Group their
appliesriskthe
of default
3-stageasgeneral
at the reporting
approachdate with the risk
to measuring of default
expected as
credit
losses
at for of
the date its initial
otherrecognition
receivables. Under
based this approach,
on available the Group
reasonable assesses
and supportable
whether there isinformation.
forward-looking a significantRegardless
increase inofcredit
the risk on the receivables
assessment, a significantby
comparingintheir
increase creditrisk of default
risk as at the
is presumed if areporting date
receivable is with
morethe risk30
than of days
default as
past
due
at in date
the making a contractual
of initial recognitionpayment.
based on available reasonable and supportable
forward-looking information. Regardless of the assessment, a significant
The Group
increase in considers
credit risk aisreceivable
presumedisif credit impairedis when
a receivable more the
thanreceivable
30 days pastis in
significant
due in makingfinancial difficulty,
a contractual for instances, the receivable is in breach of
payment.
financial covenants or insolvent. Receivables that are credit impaired are
assessed
The Groupindividually
considers awhile other is
receivable receivables are assessed
credit impaired when the on a collective
receivable is in
basis.
significant financial difficulty, for instances, the receivable is in breach of
financial covenants or insolvent. Receivables that are credit impaired are
Based
assessed on individually
the assessment performed,
while other the identified
receivables impairment
are assessed on a loss was
collective
immaterial and hence, it is not provided for.
basis.
Based on the with

Fixed Deposits assessment
Licensed performed,
Banks, Cashtheandidentified impairment loss was
Bank Balances
immaterial and hence, it is not provided for.
The Group considers these banks and financial institutions have low credit
risks.
Fixed Therefore, the Licensed
Deposits with Group is Banks,
of the view
Cashthat
andthe loss
Bank allowance is immaterial
Balances
and hence, it is not provided for.
The Group considers these banks and financial institutions have low credit
risks. Therefore, the Group is of the view that the loss allowance is immaterial
and hence, it is not provided for.
Page 113
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410
Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
NOTES
34. TO THE COMBINED
FINANCIAL FINANCIAL
(CONT’D)
34. 34.1 FINANCIAL

34.1 FINANCIAL
(c) Liquidity MANAGEMENT POLICIES (CONT’D)
RISK Risk
(c) Liquidity
Liquidityrisk
Riskarises mainly from general funding and business activities. The Group practises prudent risk management by
maintaining sufficient cash balances and the availability of funding through certain committed credit facilities.
Liquidity risk arises mainly from general funding and business activities. The Group practises prudent risk management by
maintaining sufficient cash balances and the availability of funding through certain committed credit facilities.
Maturity Analysis
Maturity
The Analysis
following table sets out the maturity profile of the financial liabilities at the end of the reporting period based on contractual
undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on the rates at the
following
The of
end table sets
the reporting out the maturity profile of the financial liabilities at the end of the reporting period based on contractual
period):-
end of the reporting period):- Weighted
Average Effective Contractual
Weighted
Interest Carrying Undiscounted Within
Average Effective
Rate Amount Contractual
Cash Flows 1 Year 1 - 5 Years Over 5 Years
Interest
% Carrying
RM Undiscounted
RM Within
RM RM RM
Rate Amount Cash Flows 1 Year 1 - 5 Years Over 5 Years
30.6.2018 % RM RM RM RM RM
30.6.2018
Non-derivative Financial Liabilities
Lease liabilities 5.69 4,163,177 4,472,973 1,939,027 2,479,958 53,988
Non-derivative
Term loans Financial Liabilities 4.86 548,411 776,256 51,798 209,107 515,351
Trade liabilities
Lease payables 5.69
- 4,163,177
10,859,400 4,472,973
10,859,400 1,939,027
10,859,400 2,479,958
- 53,988
-
Term loans
Other payables and accruals 4.86
- 548,411
1,190,344 776,256
1,190,344 51,798
1,190,344 209,107
- 515,351
-
Trade payables - 10,859,400 10,859,400 10,859,400 - -
Other payables and accruals - 16,761,332
1,190,344 17,298,973
1,190,344 14,040,569
1,190,344 2,689,065
- 569,339
-
16,761,332 17,298,973 14,040,569 2,689,065 569,339
Page 114
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MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
34. TO THE COMBINED

NOTESFINANCIAL FINANCIAL
(CONT’D)
34. FINANCIAL
34.1 INSTRUMENTS
34.1 FINANCIAL
(c) Liquidity MANAGEMENT
RISK Risk (Cont’d) POLICIES (CONT’D)
(c) Liquidity
Maturity Risk (Cont’d)
Analysis (Cont’d)
Maturity Analysis
The following (Cont’d)
table sets out the maturity profile of the financial liabilities at the end of the reporting period based on contractual
end following
The of table sets
the reporting period) the maturity profile of the financial liabilities at the end of the reporting period based on contractual
out(Cont’d):-
end of the reporting period) (Cont’d):- Weighted
Weighted
% RM RM RM RM RM
% RM RM RM RM RM
30.6.2019
30.6.2019
Lease liabilities 6.21 4,965,430 5,359,244 2,505,658 2,853,586 -
Term loans 6.73 3,349,326 4,768,840 773,236 1,338,151 2,657,453
Trade payables - 19,104,241 19,104,241 19,104,241 - -
Term loans 6.73 3,349,326 4,768,840 773,236 1,338,151 2,657,453
Other payables and accruals - 4,335,817 4,335,817 4,335,817 - -
Trade payables - 19,104,241 19,104,241 19,104,241 - -
Bankers' acceptances 5.28 2,248,000 2,248,000 2,248,000 - -
Other payables and accruals - 4,335,817 4,335,817 4,335,817 - -
Bank overdrafts 8.17 77,680 77,680 77,680 - -
Bank overdrafts 8.17 34,080,494
77,680 35,893,822
77,680 29,044,632
77,680 4,191,737
- 2,657,453
-
34,080,494 35,893,822 29,044,632 4,191,737 2,657,453
Page 115
412 Page 115

Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
NOTES
34. TO THE COMBINED
FINANCIAL FINANCIAL
(CONT’D)
34. FINANCIAL
34.1 INSTRUMENTS
34.1 FINANCIAL
(c) Liquidity
Analysis (Cont’d)
Maturity
The Analysis
following (Cont’d)
The following
end of table sets
out(Cont’d):-
Weighted
Average Effective
Interest
% Carrying
RM Undiscounted
RM Within
RM RM RM
30.6.2020 % RM RM RM RM RM
30.6.2020
Non-derivative
Term loans Financial Liabilities 6.09 3,054,779 4,334,632 603,408 1,155,358 2,575,866
Lease liabilities
Trade payables 6.30
- 5,381,539
23,107,062 5,763,514
23,107,062 3,008,862
23,107,062 2,754,652
- --
Term loans
- 3,054,779
1,432,754 4,334,632
1,432,754 603,408
1,432,754 1,155,358
- 2,575,866
-
Trade payables
Bankers' acceptances -
4.33 23,107,062
1,573,000 23,107,062
1,573,000 23,107,062
1,573,000 -- --
Trust payables and accruals
Other receipt -
4.75 1,432,754
504,000 1,432,754
504,000 1,432,754
504,000 -- --
Trust receipt 4.75 35,053,134
504,000 36,714,962
504,000 30,229,086
504,000 3,910,010
- 2,575,866
-
35,053,134 36,714,962 30,229,086 3,910,010 2,575,866
Page 116
413 Page 116

Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
34. TO THE COMBINED

(CONT’D)
34. 34.1 FINANCIAL

34.1 FINANCIAL
(c) Liquidity
Analysis (Cont’d)
Maturity
The Analysis
end following
The of table sets
out(Cont’d):-
Weighted
Average Effective
Audited Interest
% Carrying
RM Undiscounted
RM Within
RM RM RM
Audited
30.6.2021 % RM RM RM RM RM
30.6.2021
Lease liabilities 6.38 4,147,570 4,466,003 2,722,140 1,742,854 1,009
Non-derivative
Term loans Financial Liabilities 5.14 3,019,684 3,325,813 839,261 2,127,244 359,308
Lease liabilities
Trade payables 6.38
- 4,147,570
42,227,603 4,466,003
42,227,603 2,722,140
42,227,603 1,742,854
- 1,009
-
Term
Other loans
payables and accruals 5.14
- 3,019,684
1,345,348 3,325,813
1,289,348 839,261
1,289,348 2,127,244
- 359,308
-
Trade payables
3.86 42,227,603
2,490,000 42,227,603
2,490,000 42,227,603
2,490,000 -- --
Trust payables and accruals
Other receipt -
7.20 1,345,348
1,644,100 1,289,348
1,644,100 1,289,348
1,644,100 -- --
54,874,305 1,644,100
55,442,867 1,644,100
51,212,452 -
3,870,098 -
360,317
54,874,305 55,442,867 51,212,452 3,870,098 360,317
Page 117
414 Page 117

Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
34. TO THE COMBINED

(CONT’D)
34. 34.1 FINANCIAL

34.1 FINANCIAL
(c) Liquidity
Analysis (Cont’d)
Maturity
The Analysis
end following
The of table sets
out(Cont’d):-
Weighted
Average Effective
Audited Interest
% Carrying
RM Undiscounted
RM Within
RM RM RM
Audited
31.10.2021 % RM RM RM RM RM
31.10.2021
Term loans 3.74 2,715,070 3,040,367 668,523 2,027,656 344,188
Lease liabilities
Trade payables 6.11
- 3,432,518
43,165,541 3,649,738
43,165,541 1,908,710
43,165,541 1,741,028
- --
Term loans
- 2,715,070
1,391,924 3,040,367
1,391,924 668,523
1,391,924 2,027,656
- 344,188
-
Trade payables
3.73 43,165,541
1,290,000 43,165,541
1,290,000 43,165,541
1,290,000 -- --
Other payables
Trust receipt and accruals -
6.67 1,391,924
241,846 1,391,924
241,846 1,391,924
241,846 -- --
241,846 52,779,416
241,846 48,666,544
241,846 3,768,684
- 344,188-
52,236,899 52,779,416 48,666,544 3,768,684 344,188
Page 118
415 Page 118

Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
34. TO THE COMBINED

(CONT’D)
34. 34.1 FINANCIAL

34.1 FINANCIAL
(c) Maturity Analysis

Liquidity (Cont’d)
Risk (Cont’d)
Maturity
The Analysis
The following
end of table sets
out(Cont’d):-
Weighted
Average Effective
Unaudited Interest
% Carrying
RM Undiscounted
RM Within
RM RM RM
Unaudited
31.10.2020 % RM RM RM RM RM
31.10.2020
Term loans 3.29 4,812,144 5,941,668 1,208,230 2,483,583 2,249,855
Lease liabilities
Trade payables 6.30
- 4,524,735
26,285,445 4,817,619
26,285,445 2,713,690
26,285,445 2,103,929
- --
Term loans
- 4,812,144
978,004 5,941,668
978,004 1,208,230
978,004 2,483,583
- 2,249,855
-
Trade payables
3.14 26,285,445
2,601,000 26,285,445
2,601,000 26,285,445
2,601,000 -- --
Other payables and accruals - 978,004 978,004 978,004 - -
Bankers' acceptances 3.14 39,201,328
2,601,000 40,623,736
2,601,000 33,786,369
2,601,000 4,587,512
- 2,249,855
-
39,201,328 40,623,736 33,786,369 4,587,512 2,249,855
Page 119
416 Page 119

No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
34.2 CAPITAL RISK MANAGEMENT
The Group manages its capital to ensure that entities within the Group will be able to
34.2 CAPITAL
maintain an RISK MANAGEMENT
optimal capital structure so as to support its businesses and maximise
shareholders value. To achieve this objective, the Group may make adjustments to the
capital structure
The Group in viewitsofcapital
manages changesto in economic
ensure conditions,
that entities such
within theasGroup
adjusting
will the
be amount
able to
of dividendanpayment,
maintain optimal returning of capital to
capital structure soshareholders
as to supportor issuing new shares.
its businesses and maximise
shareholders value. To achieve this objective, the Group may make adjustments to the
The Group
capital manages
structure in viewitsof capital
changes based on debt-to-equity
in economic conditions, ratio
such that compliesthe
as adjusting with debt
amount
covenants and regulatory,
of dividend payment, returningif ofany. Theto debt-to-equity
capital shareholders orratio is calculated
issuing new shares.as net debt
divided by total equity. The Group includes within net debt, loans and borrowings from
The Group
financial managesless
institutions its cash
capital
andbased
cash on debt-to-equity
equivalents. ratio
Capital that complies
includes with debt
equity attributable
covenants
to the ownersandof regulatory,
the parent and if any. The debt-to-equity
non-controlling interest. ratio is calculated as net debt
divided by total equity. The Group includes within net debt, loans and borrowings from
financial institutions less cash and cash equivalents. Capital includes equity attributable
to the owners of the parent and non-controlling interest.
Page 120
Page 120
417
Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
NOTES
34. TO THE COMBINED
FINANCIAL FINANCIAL
(CONT’D)
34. FINANCIAL
34.2 INSTRUMENTS
CAPITAL (CONT’D)
RISK MANAGEMENT (CONT’D)
34.2 CAPITAL RISK MANAGEMENT

The debt-to-equity (CONT’D)
ratio of the Group at the end of the reporting period was as follows:-
The debt-to-equity ratio of the Group at the end

Audited period was as follows:-
of the reportingAudited Audited Audited Unaudited Audited
Audited
RM Audited
RM Audited
RM Audited
RM Unaudited
RM Audited
RM
Lease liabilities (Note 14) RM
4,163,177 RM
4,965,430 RM
5,381,539 RM
4,147,570 RM
4,524,735 RM
3,432,518
Term loans (Note 15) 548,411 3,349,326 3,054,779 3,019,684 4,812,144 2,715,070
Lease liabilities
Bankers' (Note 14)
acceptances (Note 19) 4,163,177
- 4,965,430
2,248,000 5,381,539
1,573,000 4,147,570
2,490,000 4,524,735
2,601,000 3,432,518
1,290,000
Term loans (Note
Trust receipt (Note15)
20) 548,411
- 3,349,326
- 3,054,779
504,000 3,019,684
1,644,100 4,812,144
- 2,715,070
241,846
Bank overdrafts (Note 19)
(Note 21) -- 2,248,000
77,680 1,573,000
- 2,490,000
- 2,601,000
- 1,290,000
-
Trust receipt (Note 20) - - 504,000 1,644,100 - 241,846
Bank overdrafts (Note 21) 4,711,588
- 10,640,436
77,680 10,513,318
- 11,301,354
- 11,937,879
- 7,679,434
-
Less: Fixed deposits with licensed banks 4,711,588

(903,505) 10,640,436
(1,712,320) 10,513,318
(2,259,878) 11,301,354
(2,904,828) 11,937,879
(2,513,972) 7,679,434
(4,062,339)
Less: Cash and bank balances (957,189) (3,202,716) (3,774,415) (8,352,980) (3,585,906) (8,672,731)
Less: Fixed deposits with licensed banks (903,505) (1,712,320) (2,259,878) (2,904,828) (2,513,972) (4,062,339)
Net debt
Less: Cash and bank balances 2,850,894
(957,189) 5,725,400
(3,202,716) 4,479,025
(3,774,415) 43,546
(8,352,980) 5,838,001
(3,585,906) (5,055,636)
(8,672,731)
Net debt 2,850,894 5,725,400 4,479,025 43,546 5,838,001 (5,055,636)

Total equity 22,069,240 27,387,619 32,179,091 39,247,772 33,740,029 42,291,768
Total equity 22,069,240 27,387,619 32,179,091 39,247,772 33,740,029 42,291,768

Debt-to-equity (times) 0.13 0.21 0.14 * 0.17 ^
Debt-to-equity (times) 0.13 0.21 0.14 * 0.17 ^

* - As of 30 June 2021, the Group has insignificant net debt, the debt-to-equity ratio may not provide a meaningful indicator of the risk of borrowings.
^ - As of 31 October 2021, the debt-to-equity ratio of the Group is not presented as its cash and cash equivalents exceeded the total external borrowings.
* - As of 30 June 2021, the Group has insignificant net debt, the debt-to-equity ratio may not provide a meaningful indicator of the risk of borrowings.
^ - As of 31 October 2021, the debt-to-equity ratio of the Group is not presented as its cash and cash equivalents exceeded the total external borrowings.
Page 121
418 Page 121

No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
34.3 CLASSIFICATION OF FINANCIAL INSTRUMENTS
Audited
34.3 CLASSIFICATION OF FINANCIAL INSTRUMENTS 30 June 2018
RM
Audited
30 June 2018
Financial Assets
RM
Loans and Receivables Financial Assets
Financial Assets
Trade receivables (Note 7) 7,924,858
Other receivables 194,011
Amount owing by directors (Note 10) 150,000
Trade receivables (Note 7) 7,924,858
Fixed deposits with licensed banks (Note 11) 903,505
Other receivables 194,011
Amount owing by directors (Note 10) 150,000
Fixed deposits with licensed banks (Note 11) 10,129,563
903,505
Financial Liability 10,129,563
Other Financial Liabilities

Financial Liability
Lease liabilities (Note 14) 4,163,177
Term loans (Note 15) 548,411
Trade payables (Note 17) 10,859,400
Lease liabilities (Note 14) 4,163,177
Other payables and accruals (Note 18) 1,190,344
Term loans (Note 15) 548,411
Trade payables (Note 17) 16,761,332
10,859,400
Other payables and accruals (Note 18) 1,190,344
16,761,332
Page 122
Page 122
419
Registration No

MN HOLDINGS BERHAD
MN HOLDINGS BERHAD
MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
34. TO THE COMBINED
(CONT’D)
34. FINANCIAL
34.3 INSTRUMENTS
CLASSIFICATION OF FINANCIAL
(CONT’D)INSTRUMENTS (CONT’D)
34.3 CLASSIFICATION OF FINANCIAL INSTRUMENTS (CONT’D)
Audited Audited Audited Unaudited Audited
Audited
June 2019
30 Audited 30 Audited
June 2020 30 Audited
June 2021 Unaudited
31 October 2020 31 October
Audited2021
Audited Audited Unaudited Audited
30 Audited
June
RM 2019 30 Audited
June
RM 2020 30 Audited
June
RM 2021 Unaudited
31 October
RM 2020 Audited
31 October
RM 2021
30 June 2019 30 June 2020 30 June 2021 31 October 2020 31 October 2021
30 June
RM 2019 30 June
RM 2020 30 June
RM 2021 31 October
RM 2020 31 October
RM 2021
RM RM RM RM RM
Financial Assets RM RM RM RM RM
Financial Assets
Financial Assets
Financial
Amortised Assets
Cost
Amortised Cost
Trade receivables 13,279,943 8,623,093 29,767,327 13,164,260 26,986,455
Amortised Cost (Note 7)
Amortised
Trade Cost
receivables
Other receivables (Note 7) 13,279,943
4,600 8,623,093
29,346 29,767,327
70,828 13,164,260
85,007 26,986,455
42,929
Trade receivables (Note 7) 13,279,943 8,623,093 29,767,327 13,164,260 26,986,455
Trade
Other
Fixed receivables
receivables
deposits with(Note 7)
licensed banks 13,279,943
4,600
1,712,320 8,623,093
29,346
2,259,878 29,767,327
70,828
2,904,828 13,164,260
85,007
2,513,972 26,986,455
42,929
4,062,339
Other receivables 4,600 29,346 70,828 85,007 42,929
Other
Fixed receivables
deposits
Cash and with licensed
balances banks 4,600
1,712,320
3,202,716 29,346
2,259,878
3,774,415 70,828
2,904,828
8,352,980 85,007
2,513,972
3,585,906 42,929
4,062,339
8,672,731
Fixed deposits
bankwith licensed banks 1,712,320 2,259,878 2,904,828 2,513,972 4,062,339
Fixed deposits
Cash and bankwith licensed banks
balances 1,712,320
3,202,716 2,259,878
3,774,415 2,904,828
8,352,980 2,513,972
3,585,906 4,062,339
8,672,731
Cash and bank balances 3,202,716 3,774,415 8,352,980 3,585,906 8,672,731
Cash and bank balances 18,199,579
3,202,716 14,686,732
3,774,415 41,095,963
8,352,980 19,349,145
3,585,906 39,764,454
8,672,731
18,199,579 14,686,732 41,095,963 19,349,145 39,764,454
18,199,579 14,686,732 41,095,963 19,349,145 39,764,454
18,199,579 14,686,732 41,095,963 19,349,145 39,764,454
Financial Liability
Financial Liability
Financial Liability
Financial
Amortised Liability
Cost
Amortised
Lease liabilities
Cost (Note 14) 4,965,430 5,381,539 4,147,570 4,524,735 3,432,518
Amortised Cost
Amortised
Lease
Term loans Cost
liabilities (Note
(Note 14) 4,965,430
3,349,326 5,381,539
3,054,779 4,147,570
3,019,684 4,524,735
4,812,144 3,432,518
2,715,070
Lease liabilities (Note
15) 14) 4,965,430 5,381,539 4,147,570 4,524,735 3,432,518
Lease
Term liabilities
loans
payables(Note(Note
15) 14)
(Note 4,965,430
3,349,326
19,104,241 5,381,539
3,054,779
23,107,062 4,147,570
3,019,684
42,227,603 4,524,735
4,812,144
26,285,445 3,432,518
2,715,070
43,165,541
Term
Tradeloans (Note 15) 17) 3,349,326 3,054,779 3,019,684 4,812,144 2,715,070
Term
Trade payables
Other loans
payables (Note
(Note 17)
15)accruals 3,349,326
19,104,241
4,335,817 3,054,779
23,107,062
1,432,754 3,019,684
42,227,603
1,345,348 4,812,144
26,285,445
978,004 2,715,070
43,165,541
1,391,924
Trade payables and (Note 17) (Note 18) 19,104,241 23,107,062 42,227,603 26,285,445 43,165,541
Trade
Other payables
payables
Bankers' (Note
and
acceptances 17)
accruals
(Note (Note
19) 18) 19,104,241
4,335,817
2,248,000 23,107,062
1,432,754
1,573,000 42,227,603
1,345,348
2,490,000 26,285,445
978,004
2,601,000 43,165,541
1,391,924
1,290,000
Other payables and accruals (Note 18) 4,335,817 1,432,754 1,345,348 978,004 1,391,924
Other payables
Trust receipt (Note accruals
and20) (Note 18)
(Note 19) 4,335,817
2,248,000
- 1,432,754
1,573,000
504,000 1,345,348
2,490,000
1,644,100 978,004
2,601,000
- 1,391,924
1,290,000
241,846
Bankers' acceptances (Note 19) 2,248,000 1,573,000 2,490,000 2,601,000 1,290,000
Bankers'
Trust
Bank acceptances
receipt
overdrafts (Note 20)
(Note (Note
21) 19) 2,248,000
-
77,680 1,573,000
504,000
- 2,490,000
1,644,100
- 2,601,000
-- 1,290,000
241,846
-
Trust receipt (Note 20) - 504,000 1,644,100 - 241,846
Bank receipt (Note
Trust overdrafts (Note
20)21) -
77,680 504,000
- 1,644,100
- - 241,846
-
Bank overdrafts (Note 21) 77,680 - - - -
Bank overdrafts (Note 21) 34,080,494
77,680 35,053,134
- 54,874,305
- 39,201,328
- 52,236,899
-
34,080,494 35,053,134 54,874,305 39,201,328 52,236,899
34,080,494 35,053,134 54,874,305 39,201,328 52,236,899
34,080,494 35,053,134 54,874,305 39,201,328 52,236,899
Page 123
Page 123
Page 123
420 Page 123
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
34.4 GAIN OR LOSSES ARISING FROM FINANCIAL INSTRUMENTS
Audited
34.4 GAIN OR LOSSES ARISING FROM FINANCIAL INSTRUMENTS 30 June 2018
RM
Audited
30 June 2018
Financial Assets
RM
Financial Assets
Net gain recognised in profit or loss 104,808

Financial Liabilitiesin profit or loss
Net gain recognised 104,808

Net losses recognised in profit or loss (32,055)

Net losses recognised in profit or loss (32,055)
RM RM RM RM RM
Financial Assets
RM RM RM RM RM
Amortised Cost
Financial Assets
Net gain recognised in profit or loss 57,805 80,100 54,779 4,295 13,920
Amortised Cost
Financial Liabilitiesin profit or loss
Net gain recognised 57,805 80,100 54,779 4,295 13,920
Amortised Cost
Net losses recognised in profit or loss (189,029) (303,660) (357,571) (74,879) (73,519)
Amortised Cost
Net losses recognised in profit or loss (189,029) (303,660) (357,571) (74,879) (73,519)
Page 124
Page 124
421
Registration No

MN HOLDINGS BERHAD
MN HOLDINGS
NOTES TO THEBERHAD
NOTES
34. TO THE COMBINED
FINANCIAL FINANCIAL
(CONT’D)
34. FINANCIAL
34.5 INSTRUMENTS
FAIR VALUE (CONT’D)
INFORMATION
34.5 The
FAIRfair values
VALUE of the financial assets and financial liabilities of the Group which are maturing within the next 12 months approximated
INFORMATION
their carrying amounts due to the relatively short-term maturity of the financial instruments or repayable on demand terms.
The fair values of the financial assets and financial liabilities of the Group which are maturing within the next 12 months approximated
The
theirfollowing
carrying amounts
table setsdue
out to
thethe value profile
fairrelatively of financial
short-term instruments
maturity that are
of the financial instruments
carried at or
fairrepayable those
value andon not carried
demand terms. at fair value at
the end of the reporting period:-
The following table sets out the fair value profile of financial instruments that are carried at fair value and those not carried at fair value at
the end of the reporting period:- Fair Value of Financial Fair Value of Financial
Instruments Carried Instruments not Carried Total
Fair Value of Financial Fair Value of Financial
at Fair Value at Fair Value Fair Carrying
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Value Amount
Audited RM RM RM RM RM RM RM RM
Audited
30.6.2018 RM RM RM RM RM RM RM RM
30.6.2018
Financial Liability
Term loans - - - - 548,411 - 548,411 548,411
Financial Liability
Term loans - - - - 548,411 - 548,411 548,411
Page 125
422 Page 125

Registration No

MN HOLDINGS BERHAD
MN HOLDINGS BERHAD
NOTES
34. TO THE COMBINED
FINANCIAL FINANCIAL
(CONT’D)
34. FINANCIAL
34.5 INSTRUMENTS
INFORMATION (CONT’D)
34.5 Fair Value of Financial

FAIR VALUE INFORMATION (CONT’D) Fair Value of Financial
Fair Value Financial
at FairofValue Fair Value Financial
at FairofValue Fair Carrying
Level 1Instruments
Level 2CarriedLevel 3 Level Instruments
1 Level
not2CarriedLevel 3 Total
Value Amount
Audited RM at Fair
RMValue RM RM at FairRMValue RM Fair
RM Carrying
RM
Audited
Financial
30.6.2019Liability
Term loans - - - - 3,349,326 - 3,349,326 3,349,326
Bankers'
Financial acceptances
Liability - - - - 2,248,000 - 2,248,000 2,248,000
Bank
Term overdrafts
loans - - - - 77,680
3,349,326 - 77,680
3,349,326 77,680
3,349,326
Bankers' acceptances - - - - 2,248,000 - 2,248,000 2,248,000
Bank overdrafts - - - - 77,680 - 77,680 77,680

30.6.2020
30.6.2020
Financial Liability
Term loans - - - - 3,054,779 - 3,054,779 3,054,779
Bankers' Liability
Financial acceptances - - - - 1,573,000 - 1,573,000 1,573,000
Term loans
Trust receipt -- -- -- -- 3,054,779
504,000 -- 3,054,779
504,000 3,054,779
504,000
Trust receipt - - - - 504,000 - 504,000 504,000
Page 126
423 Page 126

Registration No

MN HOLDINGS BERHAD
MN
MN HOLDINGS
HOLDINGS BERHAD
BERHAD
NOTES
NOTES TO
TO THE
THE COMBINED
COMBINED FINANCIAL
(CONT’D)
34.
34. FINANCIAL
FINANCIAL INSTRUMENTS
INSTRUMENTS (CONT’D)
(CONT’D)
34.5 FAIR VALUE INFORMATION (CONT’D)
Instruments
Fair Carried
Value of Financial Instruments
Fair Value ofnot Carried
Financial Total
Fair Value
at Fair Financial
ofValue Fair Value
at Fair Financial
ofValue Fair Carrying
Level 1Instruments 2CarriedLevel 3 Level Instruments
1 Level
not2CarriedLevel 3 Total
Value Amount
at Level
Fair Value at Fair Value Fair Carrying
Audited at Fair Value at Fair
RMValue Fair
RM Carrying
RM
Level
RM 1 Level
RM 2 Level
RM 3 Level
RM 1 Level 2 Level
RM 3 Value Amount
Audited
30.6.2021
30.6.2021
Financial Liability
Term loans
Financial Liability - - - - 3,019,684 - 3,019,684 3,019,684
Financial
Bankers' Liability
acceptances 2,490,000 2,490,000 2,490,000
Term loans -- -- -- -- 3,019,684 -- 3,019,684 3,019,684
Term
Trust loans
receipt -- -- -- -- 3,019,684
1,644,100 -- 3,019,684
1,644,100 3,019,684
1,644,100
Trust receipt - - - - 1,644,100 - 1,644,100 1,644,100
Trust receipt - - - - 1,644,100 - 1,644,100 1,644,100
Instruments
Fair Carried
Value of Financial Instruments
Fair Value ofnot Carried
Financial Total
at Fair Value
Instruments Carried Instruments Value
at Fair not Carried Fair
Total Carrying
Level 1 at Fair 2
LevelValue Level 3 Level 1 Level
at Fair 2
Value Level 3 Value
Fair Amount
Carrying
Audited RM
Level 1 RM
Level 2 Level
RM 3 RM
Level 1 RM
Level 2 Level
RM 3 RM
Value RM
Amount
31.10.2021
31.10.2021
31.10.2021
Financial Liability
Term loans
Financial Liability - - - - 2,715,070 - 2,715,070 2,715,070
Financial Liability
Bankers'
Term loansacceptances -- -- -- -- 1,290,000
2,715,070 -- 1,290,000
2,715,070 1,290,000
2,715,070
Term loans - - - - 2,715,070 - 2,715,070 2,715,070
Trust receipt
Bankers' acceptances -- -- -- -- 241,846
1,290,000 -- 241,846
1,290,000 241,846
1,290,000
Trust receipt - - - - 241,846 - 241,846 241,846
Trust receipt - - - - 241,846 - 241,846 241,846
Page 127
Page 127
424 Page 127
Registration No

MN HOLDINGS BERHAD
MN HOLDINGS BERHAD
NOTES
34. TO THE COMBINED
FINANCIAL FINANCIAL
(CONT’D)
34. FINANCIAL
34.5 INSTRUMENTS
INFORMATION (CONT’D)

Unaudited RM RM RM RM RM RM RM RM
Unaudited RM RM RM RM RM RM RM RM
31.10.2020
31.10.2020
Financial Liability
Term loans - - - - 4,812,144 - 4,812,144 4,812,144
Bankers' Liability
Financial acceptances - - - - 2,601,000 - 2,601,000 2,601,000
Term loans - - - - 4,812,144 - 4,812,144 4,812,144
Page 128
425 Page 128

No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
Fair Value of Financial Instruments not Carried at Fair Value
The fair value of term loans, bankers’ acceptances, trust receipt and bank overdrafts
Fair
that Valuecarry of Financial
fixed interestInstruments not Carried by
rates are determined at Fair Value the relevant future
discounting
contractual cash flows using current market interest rates for similar instruments at the
The
end of fairthevalue of termperiod.
reporting loans, bankers’
The interestacceptances,
rates usedtrust receipt and
to discount the bank overdrafts
estimated cash
that
flows carryare asfixed interest rates are determined by discounting the relevant future
follows:-
contractual cash flows using current market interest rates for similar instruments at the
end of the reporting period. The
Audited Auditedinterest Audited
rates used Audited
to discountUnaudited
the estimated cash
Audited
flows are as follows:- 30 June 30 June 30 June 30 June 31 October 31 October
2018 2019 2020 2021 2020 2021
% % % % % %
30 June 30 June 30 June 30 June 31 October 31 October
2018 2019 2020 2021 2020 2021
Term loans 4.70 - 7.82 4.14 - 12.50 3.94 - 12.50 3.40 - 12.50 3.17 - 12.50 3.40 - 12.50
% % % % % %
Bankers' acceptances - 5.05 - 6.01 3.95 - 5.59 3.55 - 4.27 3.55 - 3.65 3.14
Trust receipt - - 0.28 - 5.59 7.20 - 6.67
Term loans 4.70 - 7.82 4.14 - 12.50 3.94 - 12.50 3.40 - 12.50 3.17 - 12.50 3.40 - 12.50
Bank overdrafts - 8.17 - - - -
Bankers' acceptances - 5.05 - 6.01 3.95 - 5.59 3.55 - 4.27 3.55 - 3.65 3.14
Trust receipt - - 0.28 - 5.59 7.20 - 6.67
Bank overdrafts - 8.17 - - - -
Page 129
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426
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
35. INITIAL APPLICATION OF MFRS 16
The Group has adopted MFRS 16 using the modified retrospective approach under which the
35. INITIAL APPLICATION
cumulative OF MFRS is
effect of initial application 16recognised as an adjustment to the retained profits as
at 1 July 2019 (date of initial application) without restating any comparative information.
The Group has adopted MFRS 16 using the modified retrospective approach under which the
The Group effect
cumulative has applied
of initialMFRS 16 only
application to contractsasthat
is recognised an were previously
adjustment to theidentified
retained as leases
profits as
under MFRS
at 1 July 2019 117
(date‘Leases’ and IC Interpretation
of initial application) 4 ‘Determining
without restating Whether
any comparative an Arrangement
information.
Contains a Lease’. Therefore, MFRS 16 has been applied only to contracts entered into or
changed
The Group on has
or after 1 July
applied 2019.16 only to contracts that were previously identified as leases
MFRS
under MFRS 117 ‘Leases’ and IC Interpretation 4 ‘Determining Whether an Arrangement
Lessee Accounting
Contains a Lease’. Therefore, MFRS 16 has been applied only to contracts entered into or
changed on or after 1 July 2019.
At 1 July 2019, for leases that were classified as operating leases under MFRS 117, the Group
Lessee
measured Accounting
the lease liabilities at the present value of the remaining lease payments, discounted
using the Group’s incremental borrowing rate at that date of 4.76%. The right-of-use assets
were measured
At 1 July 2019, foratleases
the amount equal
that were to the as
classified lease liability,
operating adjusted
leases underbyMFRSthe amount
117, the of any
Group
prepaid
measured or the
accrued
leaselease payments
liabilities at the relating
present to that of
value lease.
the remaining lease payments, discounted
using the Group’s incremental borrowing rate at that date of 4.76%. The right-of-use assets
The Group
were measuredhas used
at the following
amount practical
equal toexpedients
the lease inliability,
applyingadjusted
MFRS 16 byforthe
theamount
first time:-
of any
prepaid or accrued lease payments relating to that lease.
 Applied a single discount rate to a portfolio of leases with reasonably similar characteristics;
The Group has used the following practical expedients in applying MFRS 16 for the first time:-
 Applied for the exemption not to recognise operating leases with a remaining lease term of
Applied
 less thana 12
single discount
months as atrate to a2019;
1 July portfolio of leases with reasonably similar characteristics;
 Applied forinitial
Excluded the direct
exemption
costsnot
for to
therecognise operating
measurement of theleases with aasset
right-of-use remaining
at thelease term
date of of
initial
less than 12and
application; months as at 1 July 2019;
 Excluded initial direct

Used hindsight costs for the
in determining the measurement of thethe
lease term where right-of-use asset contains
lease contract at the date of initial
options to
application; and
extend or terminate the lease.
For Used
leaseshindsight
that were classified as
in determining thefinance leases,
lease term thethe
where Group
leasehas recognised
contract theoptions
contains carrying
to
amount of the
extend leased asset
or terminate and lease liability immediately before 1 July 2019 as the carrying
the lease.
amount of the right-of-use asset and the lease liability as at the date of initial application.
For leases that were classified as finance leases, the Group has recognised the carrying
amount of the leased asset and lease liability immediately before 1 July 2019 as the carrying
amount of the right-of-use asset and the lease liability as at the date of initial application.
Page 130
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427
No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD

MN HOLDINGS BERHAD
36. SIGNIFICANT EVENTS DURING THE REPORTING PERIOD
(a) On 11 March 2020, the World Health Organisation declared the COVID-19 outbreak as a
36. SIGNIFICANT EVENTS
global pandemic. DURING
Following THE REPORTING
the declaration, PERIOD
the Government of Malaysia had on 18 March
2020 imposed the Movement Control Order (“MCO”) and subsequently entered into various
phases
(a) On of the MCO
11 March 2020,until
the 31 December
World Health 2020 to curb the
Organisation spread the
declared of the COVID-19
COVID-19 pandemic
outbreak as in
a
Malaysia.
global pandemic. Following the declaration, the Government of Malaysia had on 18 March
2020 imposed the Movement Control Order (“MCO”) and subsequently entered into various
The management
phases of the MCOhas assessed
until the impact
31 December 2020 on the Company
to curb the spreadand is ofCOVID-19
of the the opinion that there
pandemic in
were no
Malaysia.material financial impacts arising from the pandemic. Nevertheless, the Company has
taken and will continue to take necessary steps to safeguard and preserve its financial
condition,
The emphasising
management on liquiditythe
has assessed management
impact on theto meet its continuing
Company and is of financial commitments
the opinion that there
and liquidity
were needs.
no material financial impacts arising from the pandemic. Nevertheless, the Company has
taken and will continue to take necessary steps to safeguard and preserve its financial
(b) condition,
Mutu Nusantara Sdn Bhd
emphasising (“MNSB”)
on liquidity and MN Power
management to meetTransmission
its continuing Sdn. Bhd.
financial (“MPTSB”)
commitments
entered into needs.
and liquidity seven (7) sales and purchase (“S&P”) agreements to disposed the seven (7)
leaseholding buildings. The details are as follows:
(b) Mutu Nusantara Sdn Bhd (“MNSB”) and MN Power Transmission Sdn. Bhd. (“MPTSB”)
Entities into seven (7) sales and purchase
entered S&P Date (“S&P”) agreements to disposedSales Proceed
the seven (7)
leaseholding buildings. The details are as follows: RM
MNSB
Entities 17
S&PJuly 2020
Date 339,200
Sales Proceed
MNSB 17 July 2020 330,000
RM
MNSB 17 July 2020 330,000
MNSB 1 September
17 July 2020 2020 363,400
339,200
MNSB 1
17September
July 2020 2020 334,500
330,000
MPTSB
MNSB 27 July
17 August2020 2020 344,800
330,000
MPTSB
MNSB 1 September 2020 363,400
363,400
MNSB 1 September 2020 334,500
MPTSB 27 August 2020 344,800
As disclosed in Note 12, the leasehold buildings and term loans have been presented in the
MPTSB 1 September 2020 363,400
combined statement of financial position as of FYE 30 June 2019, FYE 30 June 2020 and
FPE 31 October 2020 as “Non-current assets classified as held for sale” and “Liabilities
directly associated
As disclosed in Note with
12,non-current assets
the leasehold classified
buildings andasterm
heldloans
for sale”
haverespectively.
been presented in the
combined statement of financial position as of FYE 30 June 2019, FYE 30 June 2020 and
(c) MN
FPEHoldings Berhad
31 October 2020wasasincorporated in Malaysia
“Non-current on 26 November
assets classified 2020
as held for as aand
sale” public limited
“Liabilities
liability company
directly associatedandwithisnon-current
principally engaged in investment
assets classified as heldholding.
for sale”MN Holdings Berhad was
respectively.
incorporated for the purpose of acquiring the existing operating entites pursuant to the
(c) MN Holdingsexercise
restructuring Berhad was incorporated
as disclosed in Malaysia
in Note 1.1 to theon 26 November
combined 2020
financial as a public limited
statements.
liability company and is principally engaged in investment holding. MN Holdings Berhad was
(d) incorporated
On 9 December for 2020, Mutu Nusantara
the purpose Sdn. Bhd.
of acquiring declaredoperating
the existing an interimentites
dividend of RM1.00
pursuant to per
the
ordinary share
restructuring amounting
exercise to RM1,000,000
as disclosed in Note to
1.1itstoexisting shareholders.
the combined financial statements.
(e)
(d) On 93 December
February 2021, MN Power
2020, Mutu Transmission
Nusantara Sdn. Bhd.Sdn. Bhd.andeclared
declared an interim
interim dividend dividendper
of RM1.00 of
ordinary per
RM0.08 share amounting
ordinary sharetoamounting
RM1,000,000 to its existing
to RM60,000 to itsshareholders.
existing shareholder.
(e) On 3 February 2021, MN Power Transmission Sdn. Bhd. declared an interim dividend of
RM0.08 per ordinary share amounting to RM60,000 to its existing shareholder.
Page 131
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No.:: 202001038774 (1395095-M)
Registration No
MN HOLDINGS BERHAD
MN HOLDINGS BERHAD
37. SIGNIFICANT EVENTS OCCURRING AFTER THE REPORTING PERIOD
37. SIGNIFICANT
(a) EVENTS
Subsequent to the OCCURRING
reporting date, AFTER THE REPORTING
the numbers PERIOD
of new COVID-19 cases increased
substantially in Malaysia and markets in which the Group operates. As the outbreak is
(a) Subsequent
evolving, the to
full the reporting
effect date, the pandemic
of the COVID-19 numbers isofsubject
new COVID-19 cases
to uncertainty and increased
could not
substantially in Malaysia and markets
be ascertained reliably at this juncture. in which the Group operates. As the outbreak is
evolving, the full effect of the COVID-19 pandemic is subject to uncertainty and could not
(b) be ascertained
On 12 November reliably at this
2021, thejuncture.
Proposed Listing (“Prospectus”) was approved by Bursa
Malaysia Securities Berhad.
(b) On 12 November 2021, the Proposed Listing (“Prospectus”) was approved by Bursa
(c) Malaysia
On Securities
25 January Berhad.
2022, the approval-in-principal for the registration of Prospectus was
approved by Securities Comission.
(c) On 25 January 2022, the approval-in-principal for the registration of Prospectus was
(d) approved
On by Securities
10 March 2021, the Comission.
Company entered into two conditional share sales agreement
(“SSA”) to acquire the entire issued share capital of Mutu Nusantara Sdn. Bhd. (“MNSB”)
(d) On 10
and MNMarch
Power 2021, the Company
Transmission entered
(“MNPT”) of into two conditional
RM1,000,000 and share sales comprising
RM750,000 agreement
(“SSA”) to acquire the entire issued share capital of Mutu Nusantara
1,000,000 and 750,000 ordinary shares respectively from its existing shareholders Sdn. Bhd. (“MNSB”)
for a
and MN Power
purchase Transmission
consideration (“MNPT”) of
of RM32,700,000. RM1,000,000
The said purchase andconsideration
RM750,000 will
comprising
be fully
1,000,000byand
satisfied the 750,000
issuanceordinary shares new
of 326,999,998 respectively
ordinaryfrom its of
shares existing shareholders
the Company for a
at an issue
purchase consideration of RM32,700,000. The said purchase consideration
price of RM0.10 per share, which will be issued to the shareholders of MNSB and MNPT, will be fully
satisfied
namely tobyLoy theSiong
issuance
Hay,of 326,999,998
Dato’ Toh Eng Keatnew ordinary
and Dangshares
Siong of the Company at an issue
Diang.
price of RM0.10 per share, which will be issued to the shareholders of MNSB and MNPT,
namely to Loy Siong
The completion of Hay, Dato’ is
the SSA Tohconditional
Eng Keat and uponDang Siongconditions
certain Diang. precedent being
obtained/fulfilled/waived, which includes the approval of Bursa Malaysia Securities Berhad
The
for thecompletion
admission of theshare
of the SSA capital
is conditional upon certain
of MN Holdings conditionstoprecedent
Berhad (“MNHB”) the official being
list of
obtained/fulfilled/waived, which includes
Bursa Malaysia Securities Berhad for its Listing.the approval of Bursa Malaysia Securities Berhad
for the admission of the share capital of MN Holdings Berhad (“MNHB”) to the official list of
Bursa
On 26Malaysia
January Securities
2022, the Berhad
Company for its
hasListing.
completed the acquisition of MNSB and MNPT
respectively and MNSB and MNPT became wholly-owned subsidiaries of MNHB.
On 26 January 2022, the Company has completed the acquisition of MNSB and MNPT
respectively and MNSB and MNPT became wholly-owned subsidiaries of MNHB.
Page 132
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429
No.:: 202001038774 (1395095-M)
Registration No
430
Registration No.:
Registration No :202001038774
202001038774(1395095-M)
(1395095-M)
14. REPORTING ACCOUNTANTS’ REPORT ON PRO FORMA FINANCIAL INFORMATION
431
Registration No.:
202001038774(1395095-M)
(1395095-M)

(Cont’d)
432
Registration No.:
202001038774(1395095-M)
(1395095-M)

(Cont’d)
433
Appendix A
14. REPORTING ACCOUNTANTS’ REPORT ON PRO FORMA FINANCIAL INFORMATION (Cont’d)
Appendix A
MN HOLDINGS BERHAD AND ITS SUBSIDIARIES
Appendix A
MN HOLDINGS
PRO BERHAD AND
FORMA STATEMENTS OFITS SUBSIDIARIES
FINANCIAL POSITION AS AT 31 OCTOBER 2021
MN HOLDINGS
PRO BERHAD AND
FORMA STATEMENTS OFITS SUBSIDIARIES
FINANCIAL 2021
POSITION AS AT 31 OCTOBERPro Forma I Pro Forma II Pro Forma III
PRO FORMA STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 2021 After Pro
Forma I
ProAfter Pro Forma
After Pro II Pro
FormaForma III
II and
As at Pre-IPO Pre-IPO Forma Utilisation of After Pro
Utilisation
Pro Forma I Pro Forma
I andII Pro Forma of III
31 October 2021 * Exercise After
Exercise Public Issue Public Pro
After Issue Proceeds Forma II and
Proceeds
After Pro
Note As
RMat Pre-IPO
RM Pre-IPO
RM RM Forma I and Utilisation
RM of Utilisation of
After After
RMPro Forma RMII and
ASSETS 31 October 2021 * Exercise Exercise Public Issue Public Issue Proceeds Proceeds
As at Pre-IPO Pre-IPO Forma I and Utilisation of Utilisation of
NON-CURRENT ASSETS Note RM RM RM RM RM RM RM
31 October 2021 * Exercise Exercise Public Issue Public Issue Proceeds Proceeds
ASSETS
Property, plant and equipment Note RM2,408,324 RM - RM
2,408,324 RM - RM
2,408,324 RM - RM
2,408,324
NON-CURRENT ASSETS
ASSETS
Investment properties 622,300 - 622,300 - 622,300 - 622,300
Property,
NON-CURRENT
Right-of-useplant and equipment
ASSETS
assets 2,408,324
4,505,352 -- 2,408,324
4,505,352 -- 2,408,324
4,505,352 -- 2,408,324
4,505,352
Investment
Deferred tax properties
assets 622,300
1,988,106 - 622,300
1,988,106 - 622,300
1,988,106 - 622,300
1,988,106
Property, plant and equipment 2,408,324 -- 2,408,324 -- 2,408,324 -- 2,408,324
Right-of-use assets 4,505,352 - 4,505,352 - 4,505,352 - 4,505,352
Investment properties 622,300
9,524,082 - 622,300
9,524,082 - 622,300
9,524,082 - 622,300
9,524,082
Deferred tax assets 1,988,106 - 1,988,106 - 1,988,106 - 1,988,106
Right-of-use assets 4,505,352 - 4,505,352 - 4,505,352 - 4,505,352
Deferred tax assets 1,988,106
9,524,082 - 1,988,106
9,524,082 - 1,988,106
9,524,082 - 1,988,106
9,524,082
CURRENT ASSETS
9,524,082 9,524,082 9,524,082 9,524,082
Trade
CURRENT receivables
ASSETS 26,986,455 - 26,986,455 - 26,986,455 - 26,986,455
Other receivables, deposits and
Trade
CURRENT receivables
prepayments ASSETS 26,986,455
8,710,615 -- 26,986,455
8,710,615 -- 26,986,455
8,710,615 -- 26,986,455
8,710,615
Other receivables,
Contract assets deposits and 49,229,762 - 49,229,762 49,229,762 49,229,762
Trade receivables 26,986,455 - 26,986,455 -- 26,986,455 -- 26,986,455
prepayments
Fixed deposits banks 8,710,615
4,062,339 -- 8,710,615
4,062,339 -- 8,710,615
4,062,339 -- 8,710,615
4,062,339
Other receivables,
withdeposits
licensed and
Contract
Cash and assets
bank balances 6.1 49,229,762
8,672,731 -
- 49,229,762
8,672,731 -
17,167,500 49,229,762
25,840,231 -
(5,896,886) 49,229,762
19,943,345
prepayments 8,710,615 - 8,710,615 - 8,710,615 - 8,710,615
Fixed deposits with licensed banks 4,062,339 - 4,062,339 - 4,062,339 - 4,062,339
Contract assets 49,229,762
97,661,902 - 49,229,762
97,661,902 - 49,229,762
114,829,402 - 49,229,762
108,932,516
Cash and bank balances 6.1 8,672,731 - 8,672,731 17,167,500 25,840,231 (5,896,886) 19,943,345
Fixed deposits with licensed banks 4,062,339 - 4,062,339 - 4,062,339 - 4,062,339
Cash and bank balances 6.1 97,661,902
8,672,731 - 97,661,902
8,672,731 17,167,500 114,829,402
25,840,231 (5,896,886) 108,932,516
19,943,345
TOTAL ASSETS 107,185,984 107,185,984 124,353,484 118,456,598
97,661,902 97,661,902 114,829,402 108,932,516
*TOTAL ASSETS
- Extracted from the Group’s audited combined financial107,185,984
statements as of 31 October 2021. 107,185,984 124,353,484 118,456,598
TOTAL ASSETS 107,185,984
* - Extracted from the Group’s audited combined financial statements as of 31 October 2021.
107,185,984 124,353,484 118,456,598
* - Extracted from the Group’s audited combined financial statements as of 31 October 2021. Page 1
434
Page 1
Page 1
Appendix A
14. REPORTING ACCOUNTANTS’ REPORT ON PRO FORMA FINANCIAL INFORMATION (Cont’d)
Appendix A
PRO FORMA STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 2021 (CONT’D)
Pro Forma I Pro Forma II Pro Forma III
PRO FORMA STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 2021 (CONT’D) After Pro
After After Pro Forma II and
As at Pre-IPO Pre-IPO
Pro Forma I Forma
Pro Forma
I andII Utilisation of Utilisation
Pro Formaof III
31 October 2021 * Exercise Exercise Public Issue Public Issue Proceeds Proceeds
After Pro
Note RM RM RM
After RM After
RMPro RM Forma RMII and
EQUITY AND LIABILITIES As at Pre-IPO Pre-IPO Forma I and Utilisation of Utilisation of
EQUITY 31 October 2021 * Exercise Exercise Public Issue Public Issue Proceeds Proceeds
Note RM RM RM RM RM RM RM
Share capital
EQUITY ANDand invested capital
LIABILITIES 6.2 1,750,002 30,950,000 32,700,002 17,167,500 49,867,502 (900,000) 48,967,502
Merger
EQUITY deficit 6.3 - (30,950,000) (30,950,000) - (30,950,000) - (30,950,000)
Retained profits 6.4 40,541,766 - 40,541,766 - 40,541,766 (1,001,506) 39,540,260
Share capital and invested capital 6.2 1,750,002 30,950,000 32,700,002 17,167,500 49,867,502 (900,000) 48,967,502
TOTAL EQUITY 42,291,768 42,291,768 59,459,268 57,557,762
Merger deficit 6.3 - (30,950,000) (30,950,000) - (30,950,000) - (30,950,000)
Retained profits 6.4 40,541,766 - 40,541,766 - 40,541,766 (1,001,506) 39,540,260
TOTAL EQUITY 42,291,768 42,291,768 59,459,268 57,557,762
Lease liabilities 6.5 1,641,379 - 1,641,379 - 1,641,379 (1,561,894) 79,485
Term loans 6.6 2,152,588 - 2,152,588 - 2,152,588 (944,683) 1,207,905
3,793,967 3,793,967 3,793,967 1,287,390
Lease liabilities 6.5 1,641,379 - 1,641,379 - 1,641,379 (1,561,894) 79,485
- Extracted
*Term loans from the Group’s audited combined
6.6 financial statements
2,152,588as of 31 October 2021.
- 2,152,588 - 2,152,588 (944,683) 1,207,905
3,793,967 3,793,967 3,793,967 1,287,390
Page 2
435
Page 2
Appendix A
14. REPORTING ACCOUNTANTS’ REPORT ON PRO FORMA FINANCIAL INFORMATION (Cont’d) Appendix A
MN HOLDINGS BERHAD AND ITS SUBSIDIARIES Appendix A

PRO FORMA STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 2021 (CONT’D)
PRO FORMA STATEMENTS
MN HOLDINGS BERHAD AND OF FINANCIAL
ITS POSITION AS AT 31 OCTOBER 2021 (CONT’D)
SUBSIDIARIES
Pro Forma I Pro Forma II Pro Forma III
PRO FORMA STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBERPro Forma
2021 I
(CONT’D) Pro Forma II After
Pro Forma
Pro III
After After Pro Forma and
After IIPro
As at Pre-IPO Pre-IPO
ProAfter
Forma I Forma
After
Pro IPro
Forma andII Utilisation of Utilisation
Forma II
Pro Forma of
andIII
31 October
As at 2021 * Exercise
Pre-IPO Exercise
Pre-IPO Public Issue Public
Forma Issue
I and Utilisation
Proceedsof Proceeds
Utilisation
After Proof
Note 31 October
RM 2021 * RM
Exercise RM
Exercise
After Public
RMIssue Public
RMIssue
After Pro RM
Proceeds Proceeds
Forma RMII and
CURRENT LIABILITIES Note As
RMat RM
Pre-IPO RM
Pre-IPO RM Forma
RMI and Utilisation
RM of Utilisation
RM of
CURRENT LIABILITIES 31 October 2021 * Exercise Exercise Public Issue Public Issue Proceeds Proceeds
Trade payables 43,165,541 - 43,165,541 - 43,165,541 - 43,165,541
Note RM RM RM RM RM RM RM
Other
Trade payables and accruals 1,391,924
43,165,541 - 1,391,924
43,165,541 - 1,391,924
43,165,541 - 1,391,924
43,165,541
CURRENT LIABILITIES
Other payables and accruals 10,471,953
1,391,924 - 10,471,953
1,391,924 - 10,471,953
1,391,924 - 10,471,953
1,391,924
Trade liabilities
Lease payables 6.5 1,791,139
10,471,953
43,165,541 -- 1,791,139
10,471,953
43,165,541 -- 1,791,139
10,471,953
43,165,541 (1,353,499)
- 437,640
10,471,953
43,165,541
Term
Lease loans
liabilities
6.5 562,482
1,791,139
1,391,924 - 562,482
1,791,139
1,391,924 - 562,482
1,791,139
1,391,924 (135,304)
(1,353,499)
- 427,178
437,640
1,391,924
Bankers'
Term acceptances
loans
Contract liabilities 6.6 1,290,000
562,482
10,471,953 - 1,290,000
562,482
10,471,953 - 1,290,000
562,482
10,471,953 (135,304)
-- 1,290,000
427,178
10,471,953
Trust
Lease receipts
liabilities 6.5 241,846
1,290,000
1,791,139 -
- 241,846
1,290,000
1,791,139 -- 241,846
1,290,000
1,791,139 -
(1,353,499) 241,846
1,290,000
437,640
Current
Term tax
Trust receipts
loans liabilities 6.6 2,185,364
241,846
562,482 -
- 2,185,364
241,846
562,482 -- 2,185,364
241,846
562,482 -
(135,304) 2,185,364
241,846
427,178
Current tax
Bankers' liabilities
acceptances 2,185,364
1,290,000 - 2,185,364
1,290,000 - 2,185,364
1,290,000 - 2,185,364
1,290,000
61,100,249 61,100,249 61,100,249 59,611,446
Trust receipts 241,846 - 241,846 - 241,846 - 241,846
61,100,249 61,100,249 61,100,249 59,611,446
Current tax liabilities 2,185,364 - 2,185,364 - 2,185,364 - 2,185,364
TOTAL LIABILITIES 64,894,216 64,894,216 64,894,216 60,898,836
TOTAL LIABILITIES 64,894,216
61,100,249 64,894,216
61,100,249 64,894,216
61,100,249 60,898,836
59,611,446
TOTAL EQUITY AND LIABILITIES 107,185,984 107,185,984 124,353,484 118,456,598
TOTAL EQUITY AND LIABILITIES
TOTAL LIABILITIES 107,185,984
64,894,216 107,185,984
64,894,216 124,353,484
64,894,216 118,456,598
60,898,836
Number of ordinary shares 2 327,000,000 408,750,000 408,750,000
TOTAL
Net
Number EQUITY
assets AND
("NA") (RM)
of ordinary LIABILITIES
shares 107,185,984
42,291,7682 107,185,984
42,291,768
327,000,000 124,353,484
59,459,268
408,750,000 118,456,598
57,557,762
408,750,000
NA assets
Net per ordinary
("NA")share
(RM)(RM) 21,145,884
42,291,768 0.13
42,291,768 0.15
59,459,268 0.14
57,557,762
Number
NA of ordinary
per ordinary shares
share (RM) 21,145,8842 327,000,000
0.13 408,750,000
0.15 408,750,000
0.14
- Extracted
*Net from the
assets ("NA") Group’s audited combined financial statements
(RM) 42,291,768as of 31 October 2021. 42,291,768 59,459,268 57,557,762
- Extracted
*NA from the Group’s
per ordinary share (RM) audited combined financial statements
21,145,884as of 31 October 2021. 0.13 0.15 0.14
Page 3
436 Page 3
Page 3
Registration No.:
202001038774(1395095-M)
(1395095-M)

(Cont’d) Appendix A
Appendix A
MN HOLDINGS
NOTES TO THEBERHAD AND STATEMENTS
PRO FORMA ITS SUBSIDIARIES
OF FINANCIAL POSITION AS AT 31 OCTOBER 2021
1.
NOTES ABBREVIATIONS
TO THE PRO FORMA STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 2021
1. Unless the context otherwise requires, the following words and abbreviations shall apply
ABBREVIATIONS
throughout this report:-
Unless the context otherwise requires, the following words and abbreviations shall apply
Abbreviations
throughout this report:-
MNHB or the Company

Abbreviations : MN Holdings Berhad
Registration No.: 202001038774 (1395095M)
MNHB or the Company : MN Holdings Berhad
The Group : MN HoldingsNo.:
Registration Berhad,
202001038774 (1395095M)
Mutu Nusantara Sdn. Bhd.
The Group : Registration
MN HoldingsNo.: 200701011280 (769284V),
Berhad,
MN
MutuPower Transmission
Nusantara Sdn. Bhd.
Sdn. Bhd.
200701011280 (989344K)
(769284V),
MN Power Transmission Sdn. Bhd.
MNSB : Mutu Nusantara
Registration No.:Sdn. Bhd.
201201019199 (989344K)
MNSB : MN
MutuPower Transmission
Nusantara Sdn. Bhd.
Sdn. Bhd.
IPO
MNSB : Initial
MN PowerpublicTransmission
offering comprising the Public
Sdn. Bhd.
Issue and Offer for Sale collectively
IPO : Initial public offering comprising the Public
Listing : Listing
Issue andof and quotation
Offer for Sale for the entire issued
collectively
share capital of MNHB on the ACE Market of
Listing : Bursa Malaysia
Listing Securities
of and quotation forBerhad
the entire issued
share capital of MNHB on the ACE Market of
MNHB Shares or Shares : Ordinary sharesSecurities
Bursa Malaysia in MNHB Berhad
RM andShares
MNHB sen or Shares : Ringgit Malaysia
Ordinary and
shares in sen, respectively
MNHB
RM and sen : Ringgit Malaysia and sen, respectively

2. INTRODUCTION
2. The Pro Forma Statements of Financial Position of the Group as at 31 October 2021 together
INTRODUCTION
with the notes thereon, for which the Board of Directors of the Group are solely responsible,
have been
The Pro prepared
Forma for illustrative
Statements purposes
of Financial only for
Position theGroup
of the purposeasof
atinclusion in the
31 October Prospectus
2021 together
in connection
with the noteswith the Listing
thereon, and should
for which not of
the Board beDirectors
relied upon
of for
theany other
Group arepurposes.
solely responsible,
have been prepared for illustrative purposes only for the purpose of inclusion in the Prospectus
in connection with the Listing and should not be relied upon for any other purposes.
Page 4
437 Page 4
Registration No.:
202001038774(1395095-M)
(1395095-M)

Appendix A
MN HOLDINGS
(CONT’D)
NOTES TO THE PRO FORMA STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 2021
(CONT’D)
3. BASIS OF PREPARATION
3. BASIS
The ProOF FormaPREPARATION
Statements of Financial Position of the Group as at 31 October 2021 is prepared
based on the audited combined statements of financial position of the Group as at 31 October
The
2021,Prowhich
Formawas Statements
preparedof in Financial Position
accordance of the
with Group asFinancial
Malaysian at 31 October 2021 isStandards
Reporting prepared
based
(“MFRSs”)on the andaudited combinedFinancial
International statements of financial
Reporting position of
Standards the Groupand
(“IFRSs”), as atin 31
a October
manner
2021, which
consistent withwas prepared
the format in financial
of the accordance with Malaysian
statements Financial
and accounting Reporting
policies Standards
of the Group.
(“MFRSs”) and International Financial Reporting Standards (“IFRSs”), and in a manner
consistent
The combined with financial
the format of the financial
statements used in statements and accounting
the preparation of these Pro policies
Formaof the Group. of
Statements
Financial Position were not subject to any audit qualification or emphasis of matter.
The combined financial statements used in the preparation of these Pro Forma Statements of
Financial
A business Position were not
combination subjectentities
involving to any under
audit qualification
common controlor emphasis of matter.
is a business combination in
which all the combining entities or subsidiaries are ultimately controlled by the same parties
A business
before and combination
after the businessinvolving entities under
combination, andcommon controlis isnot
that control a business
transitory.combination
Subsidiariesin
which
acquired all which
the combining
have metentities or subsidiaries
the criteria are ultimatelyare
for pooling-of-interests controlled
accounted by the same merger
for using parties
before
accountingand principles.
after the business
Under thecombination,
merger method andofthat control isthenot
accounting, transitory.
results of the Subsidiaries
subsidiaries
acquired
are presentedwhichas have
if themet the criteria
business for pooling-of-interests
combination had been effected are accounted
throughoutfor theusing merger
current and
accounting principles.
previous financial years. Under
The the merger
assets andmethod
liabilitiesofcombined
accounting,arethe results offor
accounted thebased
subsidiaries
on the
are presented
carrying amounts as iffromthe business combination
the perspective of thehad been effected
common throughout the
control shareholder current
at the dateand
of
previous
transfer. On financial years. The
consolidation, theassets and between
difference liabilities costs
combined are accounted
of acquisition for nominal
over the based on the
value
carrying amounts
of share capital from
of the the perspective
subsidiaries is taken oftothe common
merger control
reserve shareholder
or merger deficit. at the date of
transfer. On consolidation, the difference between costs of acquisition over the nominal value
of
Theshare capital of
identifiable the subsidiaries
assets and liabilities is taken
of all to merger reserve
commonly or merger
controlled entitiesdeficit.
are accounted for at
their historical costs.
The identifiable assets and liabilities of all commonly controlled entities are accounted for at
their
The Prohistorical
Formacosts.
Statements of Financial Position together with the related notes thereon, have
been prepared solely to illustrate the impact of the events and transactions set out in Note 5 to
The ProForma
the Pro FormaStatements
Statementsof ofFinancial
FinancialPosition
Position hadtogether with the
the events related or
occurred notes thereon, been
transactions have
been prepared
undertaken on solely to illustrate
31 October 2021.the impact
The Pro of the events
Forma and transactions
Statements of Financial setPosition
out in Note
are 5not
to
the Pro Forma
necessarily Statements
indicative of theoffinancial
Financialposition
Positionthat
hadwould
the events
have occurred or transactions
been attained been
had the Listing
undertaken
actually on 31atOctober
occurred 2021. dates.
the respective The Pro Forma Statements of Financial Position are not
necessarily indicative of the financial position that would have been attained had the Listing
actually occurred at the respective dates.
Page 5
438 Page 5
Registration No.:
202001038774(1395095-M)
(1395095-M)

Appendix A
MN HOLDINGS
(CONT’D)
(CONT’D)
4. LISTING SCHEME
4. LISTING SCHEME
The following proposals were undertaken in conjunction with, and as an integral part of the
Listing:-
Listing:-
4.1 Pre-IPO Exercise
4.1 Pre-IPO Exercise

Acquisition of Mutu Nusantara Sdn. Bhd. and MN Power Transmission Sdn. Bhd.
(“the Acquisition”)
Acquisition of Mutu Nusantara Sdn. Bhd. and MN Power Transmission Sdn. Bhd.
(“the
MNHBAcquisition”)
has acquired the entire issued share capital of Mutu Nusantara Sdn. Bhd. and
MN Power Transmission Sdn. Bhd. by two Share Sale Agreements dated 10 March
MNHBfrom
2021 hasthe
acquired the entire
respective issued
Vendors, sharetocapital
namely, of Mutu
Loy Siong Hay,Nusantara
Dato’ TohSdn.
Eng Bhd.
Keat and
MN Power
Dang SiongTransmission Sdn. are
Diang. The details Bhd.asbyfollows:-
two Share Sale Agreements dated 10 March
2021 from the respective Vendors, namely, to Loy Siong Hay, Dato’ Toh Eng Keat and
Dang Siong Diang. The details are as follows:-
Equity Purchase No. of shares
Interest consideration issued by
Companies Equity
(%) Purchase
RM No.MNHB
of shares
Interest consideration issued by
Companies
Mutu Nusantara Sdn. Bhd. (%)
100 RM
25,970,000 MNHB
259,699,998
MN Power Transmission Sdn. Bhd. 100 6,730,000 67,300,000
Mutu Nusantara Sdn. Bhd. 100 25,970,000 259,699,998
MN Power Transmission Sdn. Bhd. 100 32,700,000
6,730,000 326,999,998
67,300,000
32,700,000 326,999,998
The purchase consideration of Mutu Nusantara Sdn. Bhd. and MN Power Transmission
Sdn. Bhd. were arrived on a willing-buyer willing-seller basis, after taking into
The purchase the
consideration consideration
audited netofassets
Mutu Nusantara Sdn.
and audited netBhd. and MN
liabilities Power
of Mutu Transmission
Nusantara Sdn.
Sdn. Bhd.MN
Bhd. and were arrived
Power on a willing-buyer
Transmission willing-seller as
Sdn. Bhd. respectively, basis,
at 30after
Junetaking into
2020. The
consideration
acquisition the
was audited net
completed on assets and audited
26 January 2022 andnetMutu
liabilities of Mutu
Nusantara Nusantara
Sdn. Bhd. andSdn.
MN
Bhd. and
Power MN Power Sdn.
Transmission Transmission Sdn.wholly-owned
Bhd. became Bhd. respectively, as at 30
subsidiaries of June
MNHB.2020. The
acquisition was completed on 26 January 2022 and Mutu Nusantara Sdn. Bhd. and MN
Power Transmission Sdn. Bhd. became wholly-owned subsidiaries of MNHB.
Page 6
439 Page 6
Registration No.:
202001038774(1395095-M)
(1395095-M)

Appendix A
MN HOLDINGS
(CONT’D)
(CONT’D)
4. LISTING SCHEME (CONT’D)
4. LISTING SCHEME
The following (CONT’D)
proposals were undertaken in conjunction with, and as an integral part of the
Listing:-
Listing:-
4.2 Public Issue
4.2 Public Issue

enlarged share capital of MNHB at an issue price of RM0.21 per Share allocated in the
The Public
following Issue of 81,750,000 new Shares, representing approximately 20% of the
manner:-
enlarged share capital of MNHB at an issue price of RM0.21 per Share allocated in the
following
 manner:-Public Issue Shares will be made available for application by the
20,437,600
Malaysian Public by way of balloting;
 20,437,600 Public Issue Shares will be made available for application by the
 Malaysian
8,175,000 Public
Public by way Shares
Issue of balloting;
will be made available for application by the
eligible directors, employees and persons who have contributed to the success
 8,175,000
of the Group;Public Issue Shares will be made available for application by the
eligible directors, employees and persons who have contributed to the success
 of the Group;
51,093,800 Public Issue Shares will be made available for application by way of
private placement to Bumiputera investors approved by Ministry of International
 51,093,800 Public Issue
Trade and Industry Shares
(“MITI”); and will be made available for application by way of
private placement to Bumiputera investors approved by Ministry of International
 Trade and Public
2,043,600 Industry (“MITI”);
Issue Sharesandwill be made available for application by way of
 2,043,600 Public Issue Shares will be made available for application by way of
4.3 private
Offer for Saleplacement to selected investors.
4.3 Offer for Sale

Concurrent with the Listing, the Offer for Sale of 40,875,000 Shares at the IPO price,
payable in full application, will be made available by way of private placement to
Concurrent with the Listing, the
selected investors. Offer for Sale of 40,875,000 Shares at the IPO price,
payable in full application, will be made available by way of private placement to
4.4 selected
Proposed investors.
Listing
4.4 Proposed Listing

The admission of the listing of and quotation for the entire enlarged issued and paid-
up share capital of MNHB of RM49,867,501.80 comprising 408,750,000 Shares on the
The admission
ACE of the Malaysia
Market of Bursa listing of and quotation
Securities for the
Berhad willentire enlarged issued and paid-
be sought.
up share capital of MNHB of RM49,867,501.80 comprising 408,750,000 Shares on the
ACE Market of Bursa Malaysia Securities Berhad will be sought.
Page 7
440 Page 7
Registration No.:
202001038774(1395095-M)
(1395095-M)

Appendix A
MN HOLDINGS
(CONT’D)
(CONT’D)
5. PRO FORMA ADJUSTMENTS TO THE PRO FORMA STATEMENTS OF FINANCIAL
POSITION
5. PRO FORMA ADJUSTMENTS TO THE PRO FORMA STATEMENTS OF FINANCIAL
POSITION
5.1 Pro Forma I
5.1 Pro Forma

FormaII incorporates the effects of the Pre-IPO Exercise as set out in Note 4.1 to
the Pro Forma Statements of Financial Position.
Pro Forma I incorporates the effects of the Pre-IPO Exercise as set out in Note 4.1 to
5.2 ProPro
the Forma II Statements of Financial Position.
Forma
5.2 Pro Forma

FormaIIIIincorporates the effects of Pro Forma I and Public Issue as set out in Note
4.2 to the Pro Forma Statements of Financial Position.
Pro Forma II incorporates the effects of Pro Forma I and Public Issue as set out in Note
5.3 4.2
Proto the Pro
Forma III Forma Statements of Financial Position.
5.3 Pro Forma

Forma III
III incorporates the effects of Pro Forma II and the utilisation of proceeds
from Public Issue. The proceeds from the Public Issue will be utilised as follows:-
Pro Forma III incorporates the effects of Pro Forma II and the utilisation of proceeds
from Public Issue. The proceeds from the Public Issue will be utilised as follows:-
Estimated
timeframe for
Estimated
utilisation from the
Purposes Amount of proceeds timeframe
date for
of Listing
RM % utilisation from the
Purposes Amount of proceeds date of Listing
Capital expenditure (1) 5,840,000
RM 34.02
% Within 24 months
Repayment of bank borrowings(2) 3,995,380 23.27 Within 12 months
Capital expenditure
General (1)
working capital 5,840,000
4,332,120 34.02 Within 24 months
25.23
Repaymentlisting
Estimated of bank borrowings
expenses (3),(4)(2) 3,995,380
3,000,000 23.27 Within 12
17.48 months
1 month
General working capital 4,332,120 25.23 Within 24 months
Estimated listing expenses (3),(4) 17,167,500
3,000,000 100.00
17.48 Within 1 month
17,167,500 100.00
Notes to the utilisation of proceeds:-
Notes As
(1) to the utilisation
at the of proceeds:-
latest practicable date of the prospectus of 9 March 2022, none of the
total utilisation of proceeds for capital expenditure were supportable by any
(1) As at the latest
purchase orders,practicable
sales and datepurchase
of the prospectus
agreementsof 9 March 2022, nonebinding
or contractual of the
total utilisationAccordingly,
agreements. of proceedstheforuse capital expenditure
of proceeds were supportable
for capital expenditurebyis any
not
purchase
reflected inorders, sales statements
the pro forma and purchase agreements
of financial position. or contractual binding
agreements. Accordingly, the use of proceeds for capital expenditure is not
(2) reflected
The Group in intends
the pro to forma statements
utilise RM3,995,380 of financial
of its IPOposition.
proceeds as early settlement
for certain lease liabilities and term loans as at 31 October 2021. The utilisation
(2) The Group intends
is reflected in the proto utilise
forma RM3,995,380
statements ofof its IPO position.
financial proceeds as early settlement
for certain lease liabilities and term loans as at 31 October 2021. The utilisation
(3) is reflected
If the actualinlisting
the pro forma statements
expenses are higher of financial
than position.
budgeted, the deficit will be funded
by internally generated funds.
(3) If the actual listing expenses are higher than budgeted, the deficit will be funded
(4) byTheinternally
estimated generated funds. of RM900,000 directly attributable to the Public
listing expenses
Issue will be set off against share capital and the remaining estimated listing
(4) The estimated
expenses listing expenses
of RM2,100,000 that isofattributable
RM900,000 todirectly attributable
the Listing to the Public
will be charged to the
Issue will be
statements of set offoragainst
profit loss and share
othercapital and the remaining
comprehensive income. As estimated listing
of 31 October
expenses of RM2,100,000
2021, RM1,098,494 has beenthat paid
is attributable
and charged to the
to Listing willor
the profit beloss
charged to the
account of
statements
the Group. of profit or loss and other comprehensive income. As of 31 October
2021, RM1,098,494 has been paid and charged to the profit or loss account of
the Group.
Page 8
441 Page 8
Registration No.:
202001038774(1395095-M)
(1395095-M)

Appendix A

(CONT’D)
(CONT’D)
6. EFFECTS ON THE PRO FORMA STATEMENTS OF FINANCIAL POSITION
6. EFFECTS
6.1 ONand
Cash THEbank
PRObalances
FORMA STATEMENTS OF FINANCIAL POSITION
6.1 Cash and bank balances RM

As at 31 October 2021 / Pro Forma I 8,672,731
RM
Pursuant to Public Issue 17,167,500
As at 31 October 2021 / Pro Forma I 8,672,731
As per ProtoForma
Pursuant Public IIIssue 25,840,231
17,167,500
Pursuant to Utilisation of Proceeds
As per Pro Forma
- Repayment II borrowings#
of bank 25,840,231
(3,995,380)
- Estimated listing expenses^ (1,901,506)
- Repayment of bank borrowings# (3,995,380)
As per Pro Forma
- Estimated III
listing expenses^ 19,943,345
(1,901,506)
6.2 As per capital

Share Pro Forma
andIIIInvested capital 19,943,345
6.2 Share capital and Invested capital Amount of

Number of Share Capital
Ordinary Shares Amount
RM of
Number of Share Capital
As at 31 October 2021** 1,750,002
Ordinary Shares 1,750,002
RM
Add: Ordinary shares issued pursuant to
As at the
31 October 2021**
acquisition of subsidiaries 1,750,002
326,999,998 1,750,002
32,700,000
Add:
Less:Ordinary shares
Acquisition issued pursuant to
of subsidiaries (1,750,000) (1,750,000)
the acquisition of subsidiaries 326,999,998 32,700,000
As perAcquisition
Less: Pro FormaofI subsidiaries 327,000,000
(1,750,000) 32,700,002
(1,750,000)
Pursuant to Public Issue 81,750,000 17,167,500
As per Pro Forma I 327,000,000 32,700,002
As per ProtoForma
Pursuant Public IIIssue 408,750,000
81,750,000 49,867,502
17,167,500
As per Pro Forma
- Estimated II
listing expenses^ 408,750,000- 49,867,502
(900,000)
As per Pro Forma
- Estimated III
listing expenses^ 408,750,000- 48,967,502
(900,000)
6.3 As per Pro

Merger Forma III
deficit 408,750,000 48,967,502
6.3 Merger deficit RM

As at 31 October 2021 RM -
Pursuant to Acquisition (30,950,000)
As at 31 October 2021 -
As per ProtoForma
Pursuant I, II and III
Acquisition (30,950,000)
(30,950,000)
As per Pro Forma I, II and III (30,950,000)
Page 9
442 Page 9
Registration No.:
202001038774(1395095-M)
(1395095-M)

Appendix A
MN HOLDINGS
(CONT’D)
(CONT’D)
6. EFFECTS ON THE PRO FORMA STATEMENTS OF FINANCIAL POSITION (CONT’D)
6. EFFECTS
6.4 ON THE
Retained PRO FORMA STATEMENTS OF FINANCIAL POSITION (CONT’D)
profits
6.4 Retained profits RM

As at 31 October 2021 / Proforma I and II 40,541,766
RM
As at 31 October
- Estimated listing2021 / Proforma I and II
expenses^ 40,541,766
(1,001,506)
As per Pro Forma
- Estimated III
listing expenses^ 39,540,260
(1,001,506)
As per Pro Forma III 39,540,260
6.5 Lease liabilities
6.5 Lease liabilities RM
As at 31 October 2021 / Proforma I and II: RM

- Non-current liabilites 1,641,379
As at 31 October
- Current liabilities 2021 / Proforma I and II: 1,791,139
- Non-current
Pursuant liabilites of Proceeds
to Utilisation 1,641,379
- Current liabilities 1,791,139
- Repayment of bank borrowings:#
- Non-current liabilites (1,561,894)
- -Repayment of bank borrowings:#
Current liabilities (1,353,499)
- Non-current liabilites (1,561,894)
As per Pro liabilities
- Current Forma III 517,125
(1,353,499)
As per Pro Forma III 517,125
6.6 Term loans
6.6 Term loans RM
As at 31 October 2021 / Proforma I and II: RM

- Non-current liabilites 2,152,588
As at 31 October
- Current liabilities 2021 / Proforma I and II: 562,482
-Pursuant
Non-current liabilites of Proceeds
to Utilisation 2,152,588
- Current liabilities # 562,482
- Repayment of bank borrowings:
- Non-current liabilites #
(944,683)
- -Repayment of bank borrowings:
Current liabilities (135,304)
- Non-current liabilites (944,683)
As per Pro liabilities
- Current Forma III 1,635,083
(135,304)
Notes:- As per Pro Forma III 1,635,083

#
-
Notes:- The Group intends to utilise RM3,995,380 of its IPO proceeds as early settlement for
certain lease liabilities and term loans as at 31 October 2021. The utilisation is reflected
#
- The
in theGroup intends
pro forma to utiliseofRM3,995,380
statements of its IPO proceeds as early settlement for
financial position.
certain lease liabilities and term loans as at 31 October 2021. The utilisation is reflected
^ - The
in theestimated
pro formalisting expenses
statements of RM900,000
of financial position.directly attributable to the Public Issue
will be set off against share capital and the remaining estimated listing expenses of
^ - The estimatedthat
RM2,100,000 listing expenses of
is attributable RM900,000
to the directly
Listing will attributable
be charged to the Public
to the statements of Issue
profit
will be set
or loss andoff against
other share capital
comprehensive and the
income. Asremaining estimated
of 31 October 2021,listing expenseshas
RM1,098,494 of
RM2,100,000
been paid andthat is attributable
charged to the
to the profit Listing
or loss will beofcharged
account to the statements of profit
the Group.
or loss and other comprehensive income. As of 31 October 2021, RM1,098,494 has
** - MN Holdings Berhad was incorporated on 26 November 2020 with an issued share
been paid and charged to the profit or loss account of the Group.
capital of RM2 comprising 2 ordinary shares.
** - MN Holdings Berhad was incorporated on 26 November 2020 with an issued share
capital of RM2 comprising 2 ordinary shares.
Page 10
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Registration No.:
202001038774(1395095-M)
(1395095-M)

(Cont’d)
444
15. STATUTORY AND OTHER INFORMATION
15.1 SHARE CAPITAL
(i) As at the date of this Prospectus, we only have one class of shares, namely, ordinary
shares, all of which rank equally with one another. There are no special rights attached
to our Shares;
(ii) Save for the Pink Form Allocations as disclosed in Section 4.3.3,
(a) no Director or employee of our Group has been or is entitled to be given or has
exercised any option to subscribe for any share of our Company or our
subsidiaries; and
(b) there is no scheme involving the employees of our Group in the shares of our
Company or our subsidiaries.
(iii) Save for the issuance of our subscriber’s shares upon our incorporation and new Shares
issued and to be issued for the Acquisitions and Public Issue as disclosed in Sections
6.1, 6.3 and 4.3.1 respectively, no shares of our Company have been issued or are
proposed to be issued as fully or partly paid-up, in cash or otherwise, within the past 2
years immediately preceding the date of this Prospectus;
(iv) Other than our Public Issue as disclosed in Section 4.3.1, there is no intention on the
part of our Directors to further issue any Shares on the basis of this Prospectus;
(v) As at the date of this Prospectus, we do not have any outstanding convertible debt
securities; and
(vi) None of our Group’s capital is under option, or agreed conditionally or unconditionally
to be put under option.
15.2 CONSTITUTION
The following provisions are extracted from our Constitution. Terms defined in our
Constitution shall have the same meanings when used here unless they are otherwise defined
here or the context otherwise requires. The following provisions extracted from our
Constitution are based on the current Listing Requirements and the Act.
15.2.1 Changes in share capital and variation of class rights
The provisions in our Constitution dealing with changes in share capital and variation of class
rights, which are no less stringent than those required by law, are as follows:
Clause 9 - Share Capital
The share capital of the Company is its issued share capital which shall be in Ringgit Malaysia.
The shares in the original or any increased capital may be divided into several classes and
there may be attached thereto, respectively, any preferential, deferred, qualified or other
special rights, privileges, conditions or restrictions as to dividend, capital, voting or otherwise.
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Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
15. STATUTORY AND OTHER INFORMATION (Cont’d)
Clause 12 - Power to Issue Preference Shares
The Company shall have power to issue preference shares ranking equally with or in priority
to preference shares already issued and the Directors may, subject to the provisions of the
Act, redeem such shares on such terms and in such manner as they may think fit.
Clause 13 - Rights of preference shareholders
13.(1) Save as otherwise specifically provided for under this Constitution in respect of any
particular class of preference shares and subject to the Act, preference shareholders
shall have the same right as ordinary shareholders as regards to receiving notices,
reports and audited financial statements and attending general meetings of the
Company.
13.(2) Save as otherwise specifically provided for under this Constitution in respect of any
particular class of preference share, preference shareholders shall also have the right
to vote at any meeting convened for the purpose of reducing the share capital of the
Company or sanctioning a disposal of the whole of the Company’s property, business
and undertaking or where the proposition to be submitted to the meeting directly
affects their rights and privileges, or when the dividend or part of the dividend on the
preference shares is in arrears for more than 6 months or on a proposal to wind-up
the Company or during the winding up of the Company, but shall have no other rights
whatsoever.
13.(3) The holder of a preference share must be entitled to a return of capital in preference
to holders of ordinary shares when the Company is wound up.
Clause 17 - Shares Issued for Purposes of Raising Money for The Construction of
Works or Building
Subject to Section 130 of the Act and any other conditions and restrictions prescribed by the
Act, if any shares of the Company are issued for the purpose of raising money to defray the
expenses of the construction of any works or buildings or the provision of any plant or
equipment which cannot be made profitable for a lengthened period, the Company may pay
interest on so much of that share capital as is for the time being paid up for the period, and
may charge the sum so paid by way of interest to capital as part of the costs of construction
of the work or building or the provision of plant or equipment.
Clause 20 - Trust not to be recognised
Except as required by law and as provided under the Rules, no person shall be recognised by
the Company as holding any share upon any trust and the Company shall not, even when
having notice thereof, be bound or compelled to recognise any equitable, contingent, future
or partial interest in any share, or any interest in any fractional part of a share, or (except
only as by this Constitution otherwise expressly provided or as required by law) any other
right in respect of any share except an absolute right to the entirety thereof in the registered
holder.
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Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Clause 21 - Issue of Securities
Subject to the provisions of this Constitution and Listing Requirement, and notwithstanding
the existence of a resolution pursuant to Section 75(1) and 76(1) of the Act, the Company
shall ensure that it shall not issue any shares or convertible securities if the total number of
shares or convertible securities, when aggregated with the total number of any such shares
or convertible securities issued during the preceding 12 months, exceeds the allowed
threshold by the prevailing rules and regulation, except where the shares or convertible
securities are issued with the prior approval of the members in general meeting of the precise
terms and conditions of the issue.
Clause 25 - Modification of Rights
If at any time the share capital of the Company, by reason of the issuance of preference
shares or otherwise is divided into different classes, the repayment of such preferred capital
or all or any of the rights and privileges attached to each class of shares may subject to the
provisions of Section 91 of the Act, this Constitution and the provisions of any written law, be
varied, modified, commuted, affected, abrogated or dealt with by resolution passed by the
holders of at least three-fourth of the issued shares of that class at a separate meeting of the
holders of that class and all the provisions hereinafter contained as to general meetings shall
mutatis mutandis apply to every such meeting except that the quorum hereof shall be 2
persons at least holding or representing by proxy one third of the issued shares of the class
and for an adjourned meeting 1 person holding shares of such class.
Provided however that in the event of the necessary majority for such a resolution not having
been obtained in the manner aforesaid consent in writing may be secured by members holding
at least three- fourths of the issued shares of the class and such consent if obtained within 2
months from the date of the separate meeting shall have the force and validity of a resolution
duly carried. To every such resolution the provisions of Section 91 of the Act, shall with such
adaptations as are necessary apply.
Clause 26 - Special Right to Any Class of Share
The special rights attached to any class of shares having preferential rights shall not unless
otherwise expressly provided by the terms of issue thereof be deemed to be varied by the
creation or issue of further shares ranking as regards participation in profits or assets of the
Company in some or all respects pari passu therewith but in no respect in priority thereto,
the Company purchasing its own shares and the Company redeeming redeemable preference
shares.
Clause 60 - Increase of Share Capital
The Company may, from time to time, whether all the shares for the time being issued shall
have been fully paid up or not, by ordinary resolution increase its share capital by the creation
and issue of new shares, such new capital to be of such amount to be divided into shares of
such respective amounts and to carry such rights or to be subject to such conditions or
restrictions in regard to dividend, return of capital or otherwise as the Company may direct in
the resolution authorising such increase.
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Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Clause 61 - Issue of New Shares to Existing Members
Subject to any direction to the contrary that may be given by the Company in general meeting,
all new shares or other convertible Securities shall, before they are issued, be offered to such
persons as at the date of the offer are entitled to receive notices from the Company of general
meetings in proportion, as nearly as the circumstances admit, to the amount of the existing
shares or Securities to which they are entitled. The offer shall be made by notice specifying
the number of shares or Securities offered, and limiting a time within which the offer, if not
accepted, will be deemed to be declined, and, after the expiration of that time, or on the
receipt of an intimation from the person to whom the offer is made that he declines to accept
the shares or Securities offered, the Directors may dispose of those shares or Securities in
such manner as they think most beneficial to the Company. The Directors may, likewise, also
dispose of any new shares or Securities which (by reason of the ratio which the new shares
or Securities bear to shares or Securities held by persons entitled to an offer of new shares
or Securities) cannot, in the opinion of the Directors, be conveniently offered under this
Clause.
Clause 62 - Alteration of Share Capital
Subject to the Statutes, The Company may from time to time alter its share capital by passing
a special resolution to:
(i) consolidate and divide all or any of its share capital, the proportion between the amount
paid and the amount, if any, unpaid on each subdivided share, shall be the same as it
was in the case of the share from which the subdivided share is derived;
(ii) convert all or any of its paid-up shares into stock and may reconvert that stock into
paid-up shares;
(iii) subdivide its shares or any of the shares, whatever is in the subdivision, the proportions
between the amount paid and the amount, if any, unpaid on each subdivided share
shall be the same as it was in the case of the share from which the subdivided share is
derived;
(iv) cancel any shares, which at the date of the passing of the resolution, which have not
been taken or agreed to be taken by any person or which have been forfeited, and
diminish the amount of its share capital by the amount of the shares so cancelled; or
(v) subject to the provisions of this Constitution and the Act, convert and/or reclassify any
class of shares into any other class of shares.
Clause 63 - Capital Reduction
The Company may by special resolution, reduce its share capital in accordance with Section
84 of the Act.
15.2.2 Borrowing and voting powers of the directors
The provisions in our Constitution dealing with voting and borrowing powers of our Directors
including voting powers in relation to proposals, arrangements or contracts in which they are
interested in are as follows:
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Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Clause 120 - Directors’ borrowing powers
120.(1) To the extent that the Act, the Listing Requirements and the Constitution allow, the
Directors may exercise all the powers of the Company to borrow money and to
mortgage or charge its undertakings, property and uncalled capital, or any part
thereof, and to issue debentures and other Securities whether outright or as security
for any debt, liability or obligation of the Company or of any related third party,
PROVIDED ALWAYS that nothing contained in this Constitution shall authorise the
Directors to borrow any money or mortgage or charge any of the Company's
undertaking, property or any uncalled capital or to issue debentures and other
Securities whether outright or as security for any debt, liability or obligation of an
unrelated third party. Provided also that the Directors shall not issue any debt
Securities convertible to ordinary shares without the prior approval of the Company
in meeting of members.
120.(2) The Directors shall cause a proper register to be kept in accordance with Section 60
of the Act of all mortgages and charges specifically affecting the property of the
Company and shall duly comply with the requirements of the Act in regard to the
registration of mortgages and charges therein specified or otherwise.
120.(3) Subject to the Act, if the Directors or any of them, or any other person, shall become
personally liable for the payment of any sum primarily due from the Company, the
Directors may execute or cause to be executed any mortgage, charge or security over
or affecting the whole or any part of the assets of the Company by way of indemnity
to secure the Directors, or persons so becoming liable as aforesaid, from any loss in
respect of such liability.
Clause 132- Proceedings of Meeting
A meeting of the Directors, for the time being at which a quorum is present, shall be
competent to exercise all or any of the powers, authorities and discretion by or under this
Constitution, vested in or exercisable by the Directors generally. Subject to this Constitution,
questions arising at any meeting of the Directors shall be decided by a majority of votes.
Clause 133- Chairman has casting vote
In case of equality of votes, the Chairman shall have a second or casting vote, except where
only 2 Directors are competent to vote on the question at issue, or at the meeting where only
2 Directors form the quorum.
Clause 137 - Disclosure of Interest in Contracts, Property, Offices, Etc
Every Director shall comply with the provisions of Sections 219 and 221 of the Act in
connection with the disclosure of his shareholding and interest in any contract or proposed
contract with the Company. This clause is subject to the Listing Requirements.
Clause 138 - Directors Refrained from Voting in Interested Transactions
A Director shall not vote in regard to any contract or proposed contract or arrangement in
which he has, directly or indirectly, an interest. Without prejudice to the generality of the
foregoing, a Director shall also not vote in regard to any contract or proposed contract or
arrangement with any other company in which he is interested, either as an officer of that
other company or as a holder of shares or other securities in that other company.
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Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Clause 140 - Director May Vote on The Giving of Security or Indemnity Where He
is Interested
Subject to Clause 137, a Director may vote in respect of:
(i) any arrangement for giving the Director himself or any other Director any security or
indemnity in respect of money lent by him to or obligations undertaken by him for the
benefit of the Company; or
(ii) any arrangement for the giving by the Company of any security to a third party in
respect of a debt or obligation of the Company for which the Director himself or any
other Director has assumed responsibility in whole or in part under a guarantee or
indemnity or by the deposit of a security.
By an ordinary resolution of the Company, the provisions of this Clause may at any time be
suspended or relaxed to any extent and, either generally or in respect of any particular
contract, arrangement or transaction, and any particular contract, arrangement or transaction
carried out in contravention of this Clause, may be ratified.
15.2.3 Remuneration of Directors
The provisions in our Constitution dealing with remuneration of Directors are as follows:
Clause 115 – Remuneration of Directors
The fees and any benefits payable to the Directors from time to time, be subject to annual
shareholder approval at general meeting and shall (unless such resolution otherwise provides)
be divisible among the Directors as they may agree, except that any Director, who shall hold
office for part only of the period in respect of which such fees are payable, shall be entitled
only to rank in such division for a proportion of the fees related to the period during which he
has held office, PROVIDED ALWAYS that:
(i) fees payable to non-executive Directors shall be by a fixed sum, and not by a
commission on or percentage of profits or turnover;
(ii) salaries payable to executive Directors shall not include a commission on or percentage
of turnover;
(iii) fees and any benefits payable to Directors shall not be increased except pursuant to a
resolution passed at a general meeting, where notice of the proposed increase has
been given in the notice convening the meeting; and
(iv) any fee paid to an alternate Director shall be agreed upon between himself and the
Director nominating him and shall be paid out of the remuneration of that Director.
Clause 116 - Reimbursement and Special Remuneration
116.(1) The Directors shall be entitled to be reimbursed for all travelling or such other
reasonable expenses as may be incurred in attending and returning from meetings of
the Directors or of any committee of the Directors or general meetings or otherwise,
howsoever, in or about the business of the Company in the course of the performance
of their duties as Directors.
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Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
116.(2) If by arrangement with the Directors, any Director shall perform or render any special
duties or service's outside his ordinary duties as a Director in particular, without
limiting to the generality of the foregoing, if any Director being willing shall be called
upon to perform extra services or to make any special exertions in going or residing
away from his usual place of business or residence for any of the purposes of the
Company or in giving special attention to the business of the Company as a member
of a committee of Directors, the Directors may pay him special remuneration, in
addition to his Director’s fees, and such special remuneration may be by way of a
fixed sum, or otherwise as may be arranged.
15.2.4 Transfer of shares
The provisions in our Constitution dealing with transfer of shares are as follows:
Clause 49 - Transfer of Securities
The transfer of any Listed Securities or class of Listed Securities in the Company shall be by
way of book entry by the Depository in accordance with the Rules and, notwithstanding
Sections 105, 106 and 110 of the Act, but subject to Section 148(2) of the Act and any
exemption that may be made from compliance with Section 148(1) of the Act, the Company
shall be precluded from registering and effecting any transfer of Listed Security.
Clause 50 - Instrument of Transfer
50.(1) Every instrument of transfer (for any share not being a Deposited Security) must be
left for registration at the office of the Company's Registrar accompanied by the
certificate of the shares comprised therein (if any) and such evidence as the Directors
may reasonably require to prove the right of the transferor to make the transfer and
the due execution by him of the instrument of transfer which is executed in
accordance with the Statutes, and subject to the power vested in the Directors by
this Constitution or the provisions of any other written law and if required, to
reasonable evidence of nationality, the Company shall register the transferee as
shareholder.
50.(2) A fee not exceeding RM3.00 (excluding the stamp duty) or any amount as shall be
determined from time to time by the Exchange may be charged for each transfer and
shall if required by the Directors be paid before the registration thereof.
Clause 51 - Person Under Disability
No share shall in any circumstances be transferred to any minor, bankrupt or person of

unsound mind.
Clause 52 - Refusal to Transfer and Notice of Refusal
52.(1) Subject to Section 106 and any other relevant provisions of the Act, the Directors may
refuse or delay to register the transfer of a share, not being a Deposited Security, to
a person of whom they shall not approve.
52.(2) If the Directors passed a resolution to refuse or delay the registration of a transfer,
they shall, within 7 days of the resolution being passed, give to the lodging broker,
transferor and the transferee written notice of the resolution setting out the precise
reasons thereof.
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Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Clause 53 - Non-Liability of the Company, its Directors and Officers in Respect of

Transfer
Neither the Company nor its Directors nor any of its officers shall incur any liability for
registering or acting upon a transfer of shares apparently made by sufficient parties, although
the same may, by reason of any fraud or other cause not known to the Company or its
Directors or other officers be legally inoperative or insufficient to pass the property in the
shares proposed or professed to be transferred, and although the transfer may, as between
the transferor and transferee, be liable to be set aside, and notwithstanding that the Company
may have notice that such instrument of transfer was signed or executed and delivered by
the transferor in blank as to the name of the transferee or the particulars of the shares
transferred or otherwise in defective manner. And in every such case, the person registered
as transferee, his executors, administrators and assigns alone shall be entitled to be
recognised as the holder of such shares and the previous holder shall, so far as the Company
is concerned, be deemed to have transferred his whole title thereto.
15.3 GENERAL INFORMATION
(i) Save for the dividends paid to the shareholders of our subsidiaries as disclosed in
Section 12.17, purchase consideration paid to the Vendors for the Acquisitions as
disclosed in Section 6.3 and Directors’ remuneration as disclosed in Section 5.2.4, no
other amount or benefit has been paid or given within the past 2 years immediately
preceding the date of this Prospectus, nor is it intended to be paid or given, to any of
our Promoters, Directors or substantial shareholders.
(ii) Save as disclosed in Section 10.1, none of our Directors or substantial shareholders
have any interest, direct or indirect, in any contract or arrangement subsisting at the
date of this Prospectus and which is significant in relation to the business of our Group.
(iii) The manner in which copies of this Prospectus together with the official application
forms and envelopes may be obtained and the details of the summarised procedures
for application of our Shares are set out in Section 16.
(iv) There is no limitation on the right to own securities including limitation on the right of
non-residents or foreign shareholders to hold or exercise their voting rights on our
Shares.
15.4 CONSENTS
(i) The written consents of the Adviser, Sponsor, Underwriter, Placement Agent, Solicitors,
Share Registrar, Company Secretary and Issuing House to the inclusion in this
Prospectus of their names in the form and context in which such names appear have
been given before the issuance of this Prospectus and have not subsequently been
withdrawn;
(ii) The written consents of the Auditors and Reporting Accountants to the inclusion in this
Prospectus of their names, Accountants’ Report and report relating to the pro forma
statements of financial position in the form and context in which they are contained in
this Prospectus have been given before the issuance of this Prospectus and have not
subsequently been withdrawn; and
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Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
(iii) The written consent of the IMR to the inclusion in this Prospectus of its name and the
IMR Report, in the form and context in which they are contained in this Prospectus
have been given before the issuance of this Prospectus and have not been subsequently
withdrawn.
15.5 DOCUMENTS FOR INSPECTION
Copies of the following documents are available for inspection at the Registered Office of our
Company during normal business hours for a period of 6 months from the date of this
Prospectus:
(i) Constitution;
(ii) Audited financial statements of MNHB for the financial period from 26 November 2020
to 30 June 2021 and FPE 2022;
(iii) Audited financial statements of MNSB and MPTSB for the FYEs 2018, 2019, 2020 and
2021;
(iv) Accountants’ Report as set out in Section 13;
(v) Reporting Accountants’ report relating to our pro forma statements of financial position
as set out in Section 14;
(vi) IMR Report as set out in Section 8;
(vii) Material contracts as set out in Section 6.7; and
(viii) Letters of consent as set out in Section 15.4.
15.6 RESPONSIBILITY STATEMENTS
Our Directors, Promoters and Selling Shareholders have seen and approved this Prospectus.
They collectively and individually accept full responsibility for the accuracy of the information
contained herein. Having made all reasonable enquiries, and to the best of their knowledge
and belief, they confirm there is no false or misleading statement or other facts which if
omitted, would make any statement in this Prospectus false or misleading.
M&A Securities acknowledges that, based on all available information, and to the best of its
knowledge and belief, this Prospectus constitutes a full and true disclosure of all material facts
concerning our IPO.
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16. SUMMARISED PROCEDURES FOR APPLICATION AND ACCEPTANCE
THIS SUMMARY OF PROCEDURES FOR APPLICATION AND ACCEPTANCE DOES NOT

CONTAIN THE DETAILED PROCEDURES AND FULL TERMS AND CONDITIONS AND YOU
CANNOT RELY ON THIS SUMMARY FOR PURPOSES OF ANY APPLICATION FOR OUR IPO
SHARES. YOU MUST REFER TO THE DETAILED PROCEDURES AND TERMS AND CONDITIONS
AS SET OUT IN THE “DETAILED PROCEDURES FOR APPLICATION AND ACCEPTANCE”
ACCOMPANYING THE ELECTRONIC PROSPECTUS ON THE WEBSITE OF BURSA SECURITIES.
YOU SHOULD ALSO CONTACT THE ISSUING HOUSE FOR FURTHER ENQUIRIES.
Unless otherwise defined, all words and expressions used here shall carry the same
meaning as ascribed to them in our Prospectus.
Unless the context otherwise requires, words used in the singular include the plural, and
vice versa.
16.1 OPENING AND CLOSING OF APPLICATION PERIOD
OPENING OF THE APPLICATION PERIOD: 10.00 A.M., 8 April 2022
CLOSING OF THE APPLICATION PERIOD: 5.00 P.M., 15 April 2022
In the event of any changes to the date or time for closing, we will advertise the notice of
changes in a widely circulated daily English and Bahasa Malaysia newspaper in Malaysia.
Late Applications will not be accepted.
16.2 METHODS OF APPLICATIONS
16.2.1 Retail Offering
Application must accord with our Prospectus and our Constitution. The submission of an
Application Form does not mean that the Application will succeed.
Types of Application and category of investors Application Method
Applications by our eligible Directors and employees Pink Application Form only
Applications by the Malaysian Public:
(i) Individuals White Application Form or

Electronic Share Application or
Internet Share Application
(ii) Non-Individuals White Application Form only
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16. SUMMARISED PROCEDURES FOR APPLICATION AND ACCEPTANCE (Cont’d)
16.2.2 Placement
Types of Application Application Method

Applications by selected investors The Placement Agent will contact
the selected investors directly.
They should follow the Placement
Agent’s instructions.
Applications by Bumiputera investors approved by MITI MITI will contact the Bumiputera
investors directly. They should
follow MITI’s instructions.
16.3 ELIGIBILITY
16.3.1 General
You must have a CDS Account and a correspondence address in Malaysia. If you
do not have a CDS Account, you may open a CDS Account by contacting any of the
ADAs set out in the list of ADAs set out in Section 12 of the Detailed Procedures
for Application and Acceptance accompanying the Electronic Prospectus on the
website of Bursa Securities. The CDS Account must be in your own name. Invalid,
nominee or third party CDS Accounts will not be accepted for the Applications.
In the case of an application by way of Application Form, you must state your CDS Account
number in the space provided in the Application Form.
In the case of an application by way of Electronic Share Application, you shall furnish your
CDS Account number to the Participating Financial Institution by way of keying in your CDS
Account number if the instructions on the ATM screen at which you enter your Electronic
Share Application require you to do so. Only an individual can make an Electronic Share
Application. A corporation or institution cannot apply for our IPO Shares by way of Electronic
Share Application.
In the case of an Application by way of Internet Share Application, you shall furnish your CDS
Account number to the Internet Participating Financial Institution by keying your CDS Account
number into the online application form. Only an individual who has an existing account to
their internet financial services with the Internet Participating Financial Institution can make
an Internet Share Application. A corporation or institution cannot apply for our IPO Shares by
way of Internet Share Application.
Only ONE Application Form for each category from each applicant will be considered and
APPLICATIONS MUST BE FOR AT LEAST 100 IPO SHARES OR MULTIPLES OF 100
IPO SHARES.
MULTIPLE APPLICATIONS WILL NOT BE ACCEPTED UNLESS EXPRESSLY ALLOWED

IN THESE TERMS AND CONDITIONS. AN APPLICANT WHO SUBMITS MULTIPLE
APPLICATIONS IN HIS OWN NAME OR BY USING THE NAME OF OTHERS, WITH OR
WITHOUT THEIR CONSENT, COMMITS AN OFFENCE UNDER SECTION 179 OF THE
CMSA AND IF CONVICTED, MAY BE PUNISHED WITH A MINIMUM FINE OF
RM1,000,000 AND A JAIL TERM OF UP TO 10 YEARS UNDER SECTION 182 OF THE
CMSA.
AN APPLICANT IS NOT ALLOWED TO SUBMIT MULTIPLE APPLICATIONS IN THE

SAME CATEGORY OF APPLICATION.
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16.3.2 Application by Malaysian Public
You can only apply for our IPO Shares if you fulfill all of the following:
(i) You must be one of the following:
(a) a Malaysian citizen who is at least 18 years old as at the date of the application
for our IPO Shares; or
(b) a corporation / institution incorporated in Malaysia with a majority of Malaysian

citizens on your board of directors / trustees and if you have a share capital,
more than half of the issued share capital, excluding preference share capital, is
held by Malaysian citizens; or
(c) a superannuation, co-operative, foundation, provident, pension fund established

or operating in Malaysia.
(ii) You must not be a director or employee of the Issuing House or an immediate family
member of a director or employee of the Issuing House; and
(iii) You must submit Applications by using only one of the following methods:
(a) White Application Form; or
(b) Electronic Share Application; or
(c) Internet Share Application.
16.3.3 Application by eligible Directors and employees of our Group
The eligible Directors and employees of our Group will be provided with Pink Application Forms
and letters from us detailing their respective allocation.
16.4 APPLICATION BY WAY OF APPLICATION FORM
The Application Form must be completed in accordance with the notes and
instructions contained in the respective category of the Application Form.
Applications made on the incorrect type of Application Form or which do not
conform STRICTLY to the terms of our Prospectus or the respective category of
Application Form or notes and instructions or which are illegible will not be
accepted.
The FULL amount payable is RM0.21 for each IPO Share.
Payment must be made out in favour of “MIH SHARE ISSUE ACCOUNT NUMBER 611”
and crossed “A/C PAYEE ONLY” and endorsed on the reverse side with your name and
address.
Each completed Application Form, accompanied by the appropriate remittance and legible
photocopy of the relevant documents may be submitted using one of the following methods:
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(i) despatch by ORDINARY POST in the official envelopes provided, to the following
address:
Malaysian Issuing House Sdn Bhd [Reg No. 199301003608 (258345-X)]

11th Floor, Menara Symphony
No. 5, Jalan Prof. Khoo Kay Kim
Seksyen 13
46200 Petaling Jaya
Selangor
or
P.O. Box 00010

Pejabat Pos Jalan Sultan
46700 Petaling Jaya
Selangor Darul Ehsan
(ii) DELIVER BY HAND AND DEPOSIT in the drop-in boxes provided at the front portion
of Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling
Jaya, Selangor
so as to arrive not later than 5.00 p.m. on 15 April 2022 or by such other time and date
specified in any change to the date or time for closing.
We, together with the Issuing House, will not issue any acknowledgement of the receipt
of your Application Forms or Application monies. Please direct all enquiries in respect
of the White Application Form to the Issuing House.
16.5 APPLICATION BY WAY OF ELECTRONIC SHARE APPLICATIONS
Only Malaysian individuals may apply for our IPO Shares offered to the Malaysian Public by
way of Electronic Share Application.
Electronic Share Applications may be made through the ATM of the following Participating
Financial Institutions and their branches, namely, Affin Bank Berhad, Alliance Bank Malaysia
Berhad, AmBank (M) Berhad, CIMB Bank Berhad, Malayan Banking Berhad, Public Bank
Berhad and RHB Bank Berhad. A processing fee will be charged by the respective Participating
Financial Institutions (unless waived) for each Electronic Share Application.
The exact procedures, terms and conditions for Electronic Share Application are set out on
the ATM screens of the relevant Participating Financial Institutions.
16.6 APPLICATION BY WAY OF INTERNET SHARE APPLICATIONS
Only Malaysian individuals may use the Internet Share Application to apply for our IPO Shares
offered to the Malaysian Public.
Internet Share Applications may be made through an internet financial services website of the
Internet Participating Financial Institutions, namely, Affin Bank Berhad, Alliance Bank Malaysia
Berhad, CIMB Bank Berhad, CGS-CIMB Securities Sdn Bhd, Malayan Banking Berhad, Public
Bank Berhad and RHB Bank Berhad. A processing fee will be charged by the respective
Internet Participating Financial Institutions (unless waived) for each Internet Share
Application.
219
457
The exact procedures, terms and conditions for Internet Share Application are set out on the
internet financial services website of the respective Internet Participating Financial Institutions.
16.7 AUTHORITY OF OUR BOARD AND THE ISSUING HOUSE
The Issuing House, on the authority of our Board reserves the right to:
(i) reject Applications which:
(a) do not conform to the instructions of our Prospectus, Application Forms,

Electronic Share Application and Internet Share Application (where applicable);
or
(b) are illegible, incomplete or inaccurate; or
(c) are accompanied by an improperly drawn up or improper form of remittance; or
(ii) reject or accept any Application, in whole or in part, on a non-discriminatory basis

without the need to give any reason; and
(iii) bank in all Application monies (including those from unsuccessful / partially successful
applicants) which would subsequently be refunded, where applicable (without interest),
in accordance with Section 16.9 below.
If you are successful in your Application, our Board reserves the right to require you to appear
in person at the registered office of the Issuing House at anytime within 14 days of the date
of the notice issued to you to ascertain that your Application is genuine and valid. Our Board
shall not be responsible for any loss or non-receipt of the said notice nor will it be accountable
for any expenses incurred or to be incurred by you for the purpose of complying with this
provision.
16.8 OVER / UNDER-SUBSCRIPTION
In the event of over-subscription, our Issuing House will conduct a ballot in the manner
approved by our Directors to determine the acceptance of Applications in a fair and equitable
manner. In determining the manner of balloting, our Directors will consider the desirability of
allotting and allocating our IPO Shares to a reasonable number of applicants for the purpose
of broadening the shareholding base of our Company and establishing a liquid and adequate
market for our Shares.
The basis of allocation of shares and the balloting results in connection therewith will be
furnished by our Issuing House to the SC, Bursa Securities, all major Bahasa Malaysia and
English newspapers as well as posted on our Issuing House’s website (www.mih.com.my)
within 1 business day after the balloting event.
Pursuant to the Listing Requirements we are required to have a minimum of 25.00% of our
Company’s issued share capital to be held by at least 200 public shareholders holding not less
than 100 Shares each upon Listing and completion of our IPO. We expect to achieve this at
the point of Listing. In the event the above requirement is not met, we may not be allowed
to proceed with our Listing. In the event thereof, monies paid in respect of all Applications
will be returned in full (without interest).
220
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In the event of an under-subscription of our Issue Shares by the Malaysian Public and / or
eligible Directors and employees of our Group, subject to the underwriting arrangements and
reallocation as set out in Section 4.3.4 of our Prospectus, any of the abovementioned IPO
Shares not applied for will then be subscribed by the Underwriter based on the terms of the
Underwriting Agreement.
16.9 UNSUCCESSFUL / PARTIALLY SUCCESSFUL APPLICANTS
If you are unsuccessful / partially successful in your Application, your Application monies
(without interest) will be refunded to you in the following manner.
16.9.1 For applications by way of Application Forms
(i) The Application monies or the balance of it, as the case may be, will be returned to you
through the self-addressed and stamped Official “A” envelope you provided by ordinary
post (for fully unsuccessful applications) or by crediting into your bank account (the
same bank account you have provided to Bursa Depository for the purposes of cash
dividend / distribution) or if you have not provided such bank account information to
Bursa Depository, the balance of Application monies will be refunded via banker’s draft
sent by ordinary / registered post to your last address maintained with Bursa Depository
(for partially successful applications) within 10 Market Days from the date of the final
ballot at your own risk.
(ii) If your Application is rejected because you did not provide a CDS Account number, your
Application monies will be refunded via banker’s draft sent by ordinary / registered post
to your address as stated in the NRIC or any official valid temporary identity document
issued by the relevant authorities from time to time or the authority card (if you are a
member of the armed forces or police) at your own risk.
(iii) A number of Applications will be reserved to replace any successfully balloted

Applications that are subsequently rejected. The Application monies relating to these
Applications which are subsequently rejected or unsuccessful or only partly successful
will be refunded (without interest) by the Issuing House as per items (i) and (ii) above
(as the case may be).
(iv) The Issuing House reserves the right to bank into its bank account all Application
monies from unsuccessful applicants. These monies will be refunded (without interest)
within 10 Market Days from the date of the final ballot by crediting into your bank
account (the same bank account you have provided to Bursa Depository for the
purposes of cash dividend / distribution) or by issuance of banker’s draft sent by
ordinary / registered post to your last address maintained with Bursa Depository if you
have not provided such bank account information to Bursa Depository or as per item
(ii) above (as the case may be).
16.9.2 For applications by way of Electronic Share Application and Internet Share
Application
(i) The Issuing House shall inform the Participating Financial Institutions or Internet
Participating Financial Institutions of the unsuccessful or partially successful
Applications within 2 Market Days after the balloting date. The full amount of the
Application monies or the balance of it will be credited without interest into your account
with the Participating Financial Institution or Internet Participating Financial Institution
(or arranged with the Authorised Financial Institutions) within 2 Market Days after the
receipt of confirmation from the Issuing House.
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(ii) You may check your account on the 5th Market Day from the balloting date.
(iii) A number of Applications will be reserved to replace any successfully balloted

Applications that are subsequently rejected. The Application monies relating to these
Applications which are subsequently rejected will be refunded (without interest) by the
Issuing House by crediting into your account with the Participating Financial Institution
or Internet Participating Financial Institutions (or arranged with the Authorised Financial
Institutions) not later than 10 Market Days from the date of the final ballot. For
Applications that are held in reserve and which are subsequently unsuccessful or
partially successful, the relevant Participating Financial Institution will be informed of
the unsuccessful or partially successful Applications within 2 Market Days after the final
balloting date. The Participating Financial Institution will credit the Application monies
or any part thereof (without interest) within 2 Market Days after the receipt of
confirmation from the Issuing House.
16.10 SUCCESSFUL APPLICANTS
If you are successful in your application:
(i) Our IPO Shares allotted to you will be credited into your CDS Account.
(ii) A notice of allotment will be despatched to you at your last address maintained with
the Bursa Depository, at your own risk, before our Listing. This is your only
acknowledgement of acceptance of your Application.
(iii) In accordance with Section 14(1) of the SICDA, Bursa Securities has prescribed our
Shares as Prescribed Securities. As such, our IPO Shares issued / offered through our
Prospectus will be deposited directly with Bursa Depository and any dealings in these
Shares will be carried out in accordance with the SICDA and Depository Rules.
(iv) In accordance with Section 29 of the SICDA, all dealings in our Shares will be by book
entries through CDS Accounts. No physical share certificates will be issued to you and
you shall not be entitled to withdraw any deposited securities held jointly with Bursa
Depository or its nominee as long as our Shares are listed on Bursa Securities.
16.11 ENQUIRIES
Enquiries in respect of the applications may be directed as follows:
Mode of application Parties to direct the enquiries

Application Form MIH Enquiry Services Telephone at telephone no. 03-7890 4700
Electronic Share Participating Financial Institution

Application
Internet Share Internet Participating Financial Institution and Authorised

Application Financial Institution
You may also check the status of your Application by calling your respective ADA during office
hours at the telephone number as set out in Section 12 of the Detailed Procedures for
Application and Acceptance accompanying the electronic copy of our Prospectus on the
website of Bursa Securities.
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Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
APPENDIX I – MAJOR APPROVALS, LICENCES AND PERMITS
As at the LPD, save as disclosed below, there are no other major approvals, licences and permits issued to our Group in order to carry out our operations. For
avoidance of doubt, the Listing will not have any impact on the licences and certificates held by our Group. The details of major approvals, licences and permits
issued to our Group are as follows:
Date of
Issuing authority/ issue/
Registration No./ Date of Nature of approval or Compliance
No. Licensee License No. expiry licence Equity and/or major conditions imposed status
(i) MNSB Majlis Bandaraya Subang 31 May Business premise and N/A N/A
Jaya 2021/ advertisement license for
14 June management office at
Account No.: 2022 F-07-GF and F-07-01 Jalan
2120130700230 USJ 25/1B, Garden Shoppe
One City, 47650 Subang
Jaya, Selangor
(ii) MNSB CIDB 1 Certificate of Registration 1. General conditions Complied

September issued to MNSB as
Registration No.: 2021/ contractor pursuant to Part (a) This certificate is non-transferable.
0120140814-SL158311 16 VI of CIDB Act in respect
September of: (b) CIDB reserves the right to review the
2022 registration grade of the registered
• Grade 7, Category B, contractor from time to time.
Specialisation B04
• Grade 7, Category CE, 2. Responsibility and Obligations of the Contractor
Specialisation CE01,
CE21, CE24, CE31 (a) The contractor shall comply with the
• Grade 7, Category ME, provisions of the CIDB Act, the regulations
Specialisation E03, E05, made thereunder and any term, condition
E06, E10, E11, E15, or restriction imposed by CIDB from time to
E16, E17, E18, E19, time.
E21, E22, E24, E32,
M15
461
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
APPENDIX I – MAJOR APPROVALS, LICENCES AND PERMITS (Cont’d)
Date of
(b) The contractor shall not participate in any
tender or execute any construction works
after the expiration of this certificate unless
it is renewed.
(c) The contractor shall not undertake any

construction projects which exceeds the
value of construction works specified under
the registration grade and shall not execute
any type of construction work outside of its
registered category(ies).
(d) The contractor shall submit information

regarding any new construction works or
contract(s) within 14 days of the award or
prior to commencement of works,
whichever the earlier.
(e) The contractor shall submit any information

required by CIDB from time to time.
(f) The contractor shall display the certificate

of registration issued by CIDB or a certified
true copy of the same by CIDB at the place
of business.
(g) The contractor shall display its registration

number on the signboard at each
construction site.
462
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(h) The contractor shall apply for a renewal of
registration within 60 days before the
expiry date specified in this certificate.
(i) The contractor shall comply with all

requirements in the Contractor’s Code of
Ethics.
(j) The contractor shall employ skilled

construction workers and site supervisors
who are accredited and certified by CIDB.
(k) All employees at the site must have valid

construction personnel identification.
3. Disciplinary Actions
The contractor’s registration shall be cancelled,

suspended or revoked if:
(a) The contractor fails to comply with the

requirement of any other written law;
(b) The contractor has been adjudicated

bankrupt;
(c) A winding-up petition in relation to the

contractor has been presented;
463
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(d) The contractor contravenes or fails to
comply with any provision of the CIDB Act;
(e) The contractor has obtained the certificate

by making or causing to be made any false
or fraudulent declaration, certification or
representation either in writing or
otherwise;
(f) The contractor has abandoned any

construction works undertaken without
good reason;
(g) The contractor is found negligent by the

court of any board of enquiry established
under any written law in connection with
any construction works undertaken; or
(h) The contractor contravenes or fails to fulfil

any of the contractor’s responsibilities and
obligations as specified in paragraph 2.
4. Pursuant to Regulation 13 of the Registration of

Contractors (Construction Industry) Regulations
1995, a registered contractor shall notify CIDB
of any change in its capital, ownership or it
board of directors or management within 30
days of the change.
464
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(iii) MNSB CIDB 5 Certificate of Government 1. General Conditions Complied
September Work Procurement (Sijil
Registration No.: 2021/ Perolehan Kerja Kerajaan) (a) This certificate is issued based on the
0120140814-SL158311 16 (“SPKK”) information provided by the
September applicant/company.
2022 Certificate of Registration
issued to MNSB as (b) This certificate shall not be used as
Government contractor in acknowledgement for initiating or
respect of: undertaking to execute construction work.
This certificate shall be used to participate
• Grade 7, Category B in government procurement or any work
(building construction) with government agencies only.
• Grade 7, Category CE
(civil engineering (c) This certificate will be revoked
construction) automatically if the certificate of
• Grade 7, Category ME registration as contractor has expired or is
(mechanical and cancelled/revoked/suspended in accordance
electrical) with Regulation 15 of the Registration of
Contractors (Construction Industry) 1995.
(d) This certificate must be submitted together

with the certificate of registration as
contractor during the tender for
government procurement work or any work
with government agencies.
(e) This acknowledgement of registration

certificate shall be renewed together with
the certificate of registration as contractor
issued by CIDB.
465
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
2. Responsibilities of the Company/Holder of the
Certificate
(a) The company/holder of the certificate shall

not lend, lease, transfer, permit or cause
the certificate to be used by someone who
has not been named to use this certificate
for the purpose of procuring government
work.
(b) The contractor shall not participate in any

tender or execute any works after the
expiry of this certificate until it has been
renewed.
(c) Only officers of the company who are

named in this certificate are authorised to
sign the company contract documents and
take tender document as well as attending
to work site for voting, price calling and
tender. The company shall not authorise
any other officer for the aforesaid.
(d) The company/holder of the certificate shall

ensure all terms and conditions to obtain
this certificate are complied with at all times
during the period validity of this certificate.
466
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(e) The company/holder of the certificate shall
inform CIDB of any change of information
within 30 days from the date of occurrence
of the said change.
(f) The company/holder of the certificate shall

comply with all instructions and resolutions
of the government via treasury instructions,
CIDB circular from time to time.
(a) The company/holder of the certificate shall

be subject to such disciplinary actions set
out in Regulation 15 of the Registration of
Contractors (Construction Industry)
Regulations 1995 in the event of failure to
comply with item 2 above.
(b) CIDB has the right to take disciplinary

action and impose any punishment on the
registered contractor.
(c) The company/holder of the certificate who

has been suspended or where this
certificate has been revoked due to
disciplinary proceedings shall not participate
in any tender or government procurement
work during the suspension period.
467
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(d) The company/holder of the certificate
whose certificate has been
revoked/withdrawn will be removed from
the register of CIDB. Such company who
wishes to obtain a SPKK shall comply with
the terms and conditions for the issuance of
SPKK for new applications. A blacklisted key
management personnel is prohibited from
obtaining SPKK for a period of 3 years.
(e) The company/holder of the certificate who

has been blacklisted and suspended
through disciplinary proceedings will not be
removed from the register of CIDB. The
said company/holder of the certificate will
be allowed to participate in the tender or
government procurement work only after
the expiry of the blacklisting or suspension
period.
4. Financial Limits
(a) SPKK registered contractor shall only

participate in tender allowed under the
registration grade it is registered under.
468
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(iv) MNSB MOF 23 May Certificate of Registration 1. General conditions Complied
2019/ of MNSB as a
Registration No.: 12 July supplier/service provider in (a) The approval is granted based on the
357-02201229 2022 the sector, field and sub- information provided by the company.
field under the following
License No.: sector codes: (b) Any change to the details of the company
K65835722492261849 shall be updated online at
080101, 090101, 140101, www.eperolehan.gov.my within 21 days
140201, 140301, 140302, from the effective date of change, failing
140503, 220201, 220301, which the company shall be penalised as
220503 per paragraph (e) below.
The authority is given to (c) The company shall submit any information
the following persons for required by MOF within the prescribed
managing the government period, failing which the company shall be
procurement works: penalised as per paragraph (e) below.
Loy Siong Hay – Director (d) The company must ensure that the
Toh Eng Keat - Director registered sector in the certificate shall not
overlap with the sectors approved for other
companies which has the same
shareholders, members of board of
directors, management and staff or
companies that are operating from the
same premise.
469
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(e) MOF has the right to conduct an inspection
or audit at any time without prior
notification. Failure to comply with the
conditions of registration and/or sector
code may result in the registration of the
company being suspended/cancelled and
the company, its shareholders and directors
may be subject to disciplinary proceedings
or blacklisted without any notice being
given if it is determined that the
information provided is false.
(f) A company that is newly registered is not

allowed to make any changes to its
shareholders or directors within a period of
6 months from the date of registration.
(g) Failure of the company to renew its

registration after 1 year from the expiry of
its registration may result in the company’s
registration with the MOF being cancelled
and automatically removed from the
ePerolehan System. In such circumstances,
the company is required to make a new
application.
2. Suspension or Cancellation of Registration
The registration shall be suspended/cancelled in

the event the company commits the following
offences:
470
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(a) The company/ shareholders/ partners/
directors/ other management personnel has
committed a crime and is found guilty in a
court of law in Malaysia or outside Malaysia
or is subject to any civil liability.
(b) The company withdraws an offer before the

tender is being considered or rejects an
offer that has been made.
(c) The Company fails to perform its contractual

obligations entered into with the
government.
(d) The company is found to have amended

the certificate with the intention to deceive
or for whatsoever reasons.
(e) The company allows the certificate to be

misused by any individual/companies.
(f) The company is found to have involved in

price fixing with other companies when
entering into a government tender or
granted any sub-contract without obtaining
prior valid consent from the relevant
government agencies.
471
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
3. Renewal
(a) The company is required to submit the

renewal application 3 months prior to the
expiry of the registration.
(b) Any application received after the expiry of

the registration is considered to be a new
registration.
4. Right of the Government
(a) With the issuance of the virtual certificate,

the certificate need not be shown at the
time of collection of the government
procurement documents (direct purchase,
tender and other procurement methods)
except for government agencies which have
no internet network.
(b) The company shall ensure that the

registration with MOF remains valid for the
duration of the contract.
472
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
5. Cautions on corruption
(a) Any action or attempt to bribe by way of

offering, giving or receiving any form of
bribery from anyone involved with
government procurement is an offence
under the Malaysian Anti-Corruption
Commission Act 2009.
(v) MNSB TNB 13 Certificate of Registration 1. The validity of the registration is subject to the Noted
September as Work Contractor with validity period of the certificates of registration
Registration No.:3047731 2021/ TNB under the following issued by MOF, CIDB and other relevant professional
16 categories: certificates.
License No.: 0120140814- September
SL158311 2022 • Grade 7, Category B,
Specialisation B04
• Grade 7, Category CE,
CE21, CE24, CE31
• Grade 7, Category ME,
Specialisation E03, E05,
E06, E10, E11, E15,
E16, E17, E18, E19,
E21, E22, E24, E32,
M15
473
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(vi) MNSB TNB 3 July 2019/ Certificate of Registration1. The validity of the registration is subject to the Noted
12 July as Supplier and Services validity period of the certificates of registration
Registration No.:3047731 2022 Contractor with TNB under issued by MOF, CIDB and other relevant professional
the following categories: certificates.
License No.:
K65835722492261849 080101, 090101, 140101,
140201, 140301, 140302,
140503, 220201, 220301,
220503
(vii) MNSB SESB 13 March MNSB is registered with N/A N/A

2020/ SESB & MOF as Supplier
Registration No.: 12 July and Services Contractor
005-11032020-0016 2022 under the following
categories:
Serial No.:
PKP(KKM)0266/2020 080101, 090101, 140101,
140201, 140301, 140302,
140503, 220201, 220301,
220503
(viii) MNSB SESB 8 October MNSB is registered with N/A N/A

2021/ SESB & CIDB as Work
Registration No.: 16 Contractor under the
005-11032020-0016 September following categories:
Serial No.: 2022 • Grade 7, Category B,
KK(CIDB)0730/2021 Specialisation B04
CE21, CE24, CE31
474
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
E06, E10, E11, E15,
E16, E17, E18, E19,
E21, E22, E24, E32,
M15
(ix) MNSB QMSCS Pty Ltd (trading 7 October This is to certify that the N/A N/A
as QMS Certificate 2020/ Quality Management
Services) 7 October System at MNSB has been
2023 examined by assessors of
Certificate No: 013- QMS Certificate Services
00061-Q and found to be
conforming to the
requirements of ISO
9001:2015 Quality
Management Systems in
respect of Horizontal
Directional Drilling (HDD)
and Underground and
Cable Aerial Works for
Power Cable (11KV to
132KV) and
Telecommunication
Optical Fibre
475
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(x) MNSB DOSH 8 April Certificate of Fitness – 1. This certificate is valid until the date as stated Complied
2021/ Hoisting Machine therein unless it is suspended, cancelled or
Registration No: SL PMA 6 July 2022 (Monorail Crane) revoked in accordance with the provisions of
95000 Factories and Machinery Act 1967 and provided
that all regulations made thereunder in respect
of Hoisting Machine are complied with.
2. In accordance with Rule 26(1) of Factories and

Machinery (Notification, Certificate of Fitness
and Inspections) Regulations 1970, after
inspection has been carried out, the machinery
must be operated by a qualified person who is
certified and registered with DOSH.
(xi) MNSB Energy Commission 29 Certificate of Registration 1. Comply with all conditions applicable to the Complied
November as Electrical Contractor registration throughout the validity period of
Registration No.: 2021/ issued pursuant to this certificate as set out in ESA and all
ST(TKL)SGR/C/KE/03812/ 28 Regulation 75 of the ER regulations made thereunder, as well as all
2021 November which authorises MNSB to orders and guidelines issued by the Energy
2022 carry out the business of Commission from time to time;
License No.: 2021/03255 electrical work as Electrical
Contractor at F-07-01 2. Renewal application for this certificate must be
Garden Shoppe One City, submitted to the Energy Commission no later
Jalan USJ 25/1B, 47650 than 14 days from the date of its expiry; and
Subang Jaya, Selangor
under Class C for a period 3. Competent person registered for the above
of 1 year validity period is Mohd Afiq Bin Mohd Zulkifli,
an employee of MNSB. The Energy Commission
must be notified in writing in the event of any
change to the competent person.
476
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(xii) MPTSB Majlis Bandaraya Subang 25 February Business premise and N/A N/A
Jaya 2022/ advertisement license in
1 March respect of management
Account No.: 2023 office at F-06-01 and 02
20200300004 Jalan USJ 25/1B, Garden
Shoppe One City, 47650
Subang Jaya Selangor
(xiii) MPTSB CIDB 13 Certificate of Registration 1. General conditions Complied

September issued to MPTSB pursuant
Registration No.: 2021/ to Part VI of CIDB Act in (a) This certificate is non-transferable.
0120150102-SL160720 8 January respect of:
2023 (b) CIDB reserves the right to review the
• Grade 7, Category B, registration grade of the registered
Specialisation B04, B14 contractor from time to time.
Specialisation CE21, 2. Responsibility and Obligations of the Contractor
Specialisation E03, E05, (a) The contractor shall comply with the
E06, E10, E11, E15, provisions of the CIDB Act, the regulations
E16, E17, E18, E19, made thereunder and any term, condition
E20, E21, E22, E23, or restriction imposed by CIDB from time to
E24, E25, E32 E33, time.
M15
• Grade 2, Category ME, (b) The contractor shall not participate in any
Specialisation E04 tender or execute any construction works
after the expiration of this certificate unless
it is renewed.
477
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(c) The contractor shall not undertake any
construction projects which exceeds the
value of construction works specified under
the registration grade and shall not execute
any type of construction work outside of its
registered category(ies).
(d) The contractor shall submit information

regarding any new construction works or
contract(s) within 14 days of the award or
prior to commencement of works,
whichever the earlier.
(e) The contractor shall submit any information

required by CIDB from time to time.
(f) The contractor shall display the certificate

of registration issued by CIDB or a certified
true copy of the same by CIDB at the place
of business.
(g) The contractor shall display its registration

number on the signboard at each
construction site.
(h) The contractor shall apply for a renewal of

registration within 60 days before the
expiry date specified in this certificate.
478
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(i) The contractor shall comply with all
requirements in the Contractor’s Code of
Ethics.
(j) The contractor shall employ skilled

construction workers and site supervisors
who are accredited and certified by CIDB.
(k) All employees at the site must have valid

construction personnel identification.
The contractor’s registration shall be cancelled,

suspended or revoked if:
(a) The contractor fails to comply with the

requirement of any other written law;
(b) The contractor has been adjudicated

bankrupt;
(c) A winding-up petition in relation to the

contractor has been presented;
(d) The contractor contravenes or fails to

comply with any provision of the CIDB Act;
479
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(e) The contractor has obtained the certificate
by making or causing to be made any false
or fraudulent declaration, certification or
representation either in writing or
otherwise;
(f) The contractor has abandoned any

construction works undertaken without
good reason;
(g) The contractor is found negligent by the

court of any board of enquiry established
under any written law in connection with
any construction works undertaken; or
(h) The contractor contravenes or fails to fulfil

any of the contractor’s responsibilities and
obligations as specified in paragraph 2.
4. Pursuant to Regulation 13 of the Registration of

Contractors (Construction Industry) Regulations
1995, a registered contractor shall notify CIDB
of any change in its capital, ownership or it
board of directors or management within 30
days of the change.
480
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(xiv) MPTSB MOF 6 April Certificate of Registration 1. General conditions Complied
2021/ of Company in the field of
Registration No.: 10 June supply/services as stated (a) The approval is granted based on the
357-0002290425 2024 below: information provided by the company.
Certificate No.: 020301, 020302, 120601, (b) Any change to the details of the company
K10345409122869387 120602, 130101, 130201, shall be updated online at
130202, 140301, 210201 www.eperolehan.gov.my within 21 days
from the effective date of change, failing
The authority is given to which the company shall be penalised as
the following person for per paragraph (e) below.
managing the government
procurement works: (c) The company shall submit any information
required by MOF within the prescribed
• Dang Siong Diang period, failing which the company shall be
(Director) penalised as per paragraph (e) below.
(d) The company must ensure that the

registered sector in the certificate shall not
overlap with the sectors approved for other
companies which has the same
shareholders, members of board of
directors, management and staff or
companies that are operating from the
same premise.
481
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(e) MOF has the right to conduct an inspection
or audit at any time without prior
notification. Failure to comply with the
conditions of registration and/or sector
code may result in the registration of the
company being suspended/cancelled and
the company, its shareholders and
directors may be subject to disciplinary
proceedings or blacklisted without any
notice being given if it is determined that
the information provided is false.
(f) A company that is newly registered is not

allowed to make any changes to its
shareholders or directors within a period of
6 months from the date of registration.
(g) Failure of the company to renew its

registration after 1 year from the expiry of
its registration may result in the company’s
registration with the MOF being cancelled
and automatically removed from the
ePerolehan System. In such circumstances,
the company is required to make a new
application.
2. Suspension or Cancellation of Registration
The registration shall be suspended/cancelled in

the event the company commits the following
offences:
482
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(a) The company/ shareholders/ partners/
directors /other management personnel
has committed a crime and is found guilty
in a court of law in Malaysia or outside
Malaysia or is subject to any civil liability.
(b) The company withdraws an offer before

the tender is being considered or rejects an
offer that has been made.
(c) The Company fails to perform its

contractual obligations entered into with
the government.
(d) The company is found to have amended

the certificate with the intention to deceive
or for whatsoever reasons.
(e) The company allows the certificate to be

misused by any individual/companies.
(f) The company is found to have involved in

price fixing with other companies when
entering into a government tender or
granted ay sub-contract without obtaining
prior valid consent from the relevant
government agencies.
483
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
3. Renewal
(a) The company is required to submit the

renewal application 3 months prior to the
expiry of the registration.
(b) Any application received after the expiry of

the registration is considered to be a new
registration.
4. Right of the Government
(a) With the issuance of the virtual certificate,

the certificate need not be shown at the
time of collection of the government
procurement documents (direct purchase,
tender and other procurement methods)
except for government agencies which
have no internet network.
(b) The company shall ensure that the

registration with MOF remains valid for the
duration of the contract.
5. Cautions on corruption
Any action or attempt to bribe by way of

offering, giving or receiving any form of bribery
from anyone involved with government
procurement is an offence under the Malaysian
Anti-Corruption Commission Act 2009.
484
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(xv) MPTSB TNB 20 Certificate of Registration The validity of the registration is subject to the Noted
September as Work Contractor with validity period of the certificates of registration
Registration No.:3052722 2021/ TNB under the following issued by MOF, CIDB and other relevant professional
8 January categories certificates.
License No.: 0120150102- 2023
SL160720 • Grade 7, Category B,
Specialisation B04, B14
E06, E10, E11, E15,
E16, E17, E18, E19,
E20, E21, E22, E23,
E24, E25, E32 E33,
M15
Specialisation E04
(xvi) MPTSB TNB 26 April Certificate of Registration The validity of the registration is subject to the Noted
2021/ as Supplier and Services validity period of the certificates of registration
Registration No.:3052722 10 June Contractor with TNB under issued by MOF, CIDB and other relevant professional
2024 the following categories: certificates.
License No.:
K10345409122869387 020301, 020302, 120601,
120602, 130101, 130201,
130202, 140301, 210201
485
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(xvii) MPTSB SESB 13 October MPTSB is registered with N/A N/A
2021/ SESB & CIDB as Work
Registration No.: 8 January Contractor under the
005-25022020-0023 2023 following categories:
Serial No.: • Grade 5, Category B,

KK(CIDB)0737/2021 Specialisation B04, B14
E06, E10, E11, E15,
E16, E17, E18, E19,
E20, E21, E22, E23,
E24, E25, E32 E33,
M15
Specialisation E04
(xviii) MPTSB SESB 15 June MPTSB is registered with N/A N/A

2021/ SESB & MOF as Supplier
Registration No.: 10 June and Services Contractor
005-25022020-0023 2024 under the following
categories:
Serial No.:
PKP(KKM)0431/2021 020301, 020302, 120601,
120602, 130101, 130201,
130202, 140301, 210201
486
Registration
Registration No.:
No. :202001038774
202001038774(1395095-M)
(1395095-M)
Date of
(xix) MPTSB Energy Commission 29 June Certificate of Registration 1. Comply with all conditions applicable to the Complied
2021/ as Electrical Contractor registration throughout the validity period of this
Registration No.: 28 June issued pursuant to certificate as set out in ESA and all regulations
ST(TKL)SGR/C/KE/02874/ 2024 Regulation 75 of the ER made thereunder, as well as all orders and
2018 which authorises MPTSB to guidelines issued by the Energy Commission
carry out the business of from time to time;
License No.: 2021/01321 electrical work as Electrical
Contractor at F-07-01 2. Renewal application for this certificate must be
Garden Shoppe One City, submitted to the Energy Commission no later
Jalan USJ 25/1B, 47650 than 14 days from the date of its expiry; and
Subang Jaya, Selangor
under Class C for a period 3. Competent person registered for the above
of 3 years validity period is Ahmad Fauzi Bin Sabri, an
employee of MPTSB. The Energy Commission
must be notified in writing in the event of any
change to the competent person.
487

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Registration

12. FINANCIAL INFORMATION

12.1 HISTORICAL FINANCIAL INFORMATION

12.1.1 Historical combined statements of comprehensive income

EBIT(1) 10,120 9,150 8,254 11,127

12. FINANCIAL INFORMATION (Cont’d)

EBIT(1) 2,273 3,855

(1) EBIT and EBITDA are calculated as follows:

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12. FINANCIAL INFORMATION (Cont’d)

Audited Unaudited Audited

PAT 7,367 6,367 5,662 8,129 1,561 3,044

* Less than RM500

(2) Calculated based on GP divided by revenue.

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12. FINANCIAL INFORMATION (Cont’d)

12.1.2 Historical combined statements of financial position

Audited Unaudited Audited

12. FINANCIAL INFORMATION (Cont’d)

Audited Unaudited Audited

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12. FINANCIAL INFORMATION (Cont’d)

12.1.3 Historical combined statements of cash flows

12. FINANCIAL INFORMATION (Cont’d)

Audited Unaudited Audited

Cash flows (for)/ from

Cash flows (for)/ from

Net increase/ 530 1,917 418 4,579 (188) 1,320

12. FINANCIAL INFORMATION (Cont’d)

Audited Unaudited Audited

Cash and cash equivalents at end of the financial year/

(1) Represents less than RM500.

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12. FINANCIAL INFORMATION (Cont’d)

12.2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

12.2.1 Overview of our operations

(i) Principal activities

Our Group is principally involved in the provision of infrastructure utilities services

(a) underground utilities engineering services and solutions; and

(b) substation engineering services and solutions.

Please refer to Section 7 for our Group’s detailed business overview.

(iii) Cost of sales

The cost of sales comprises purchase of raw materials and consumables,

12. FINANCIAL INFORMATION (Cont’d)

(iv) Other income

Other income mainly includes compensation received, interest income, gain on

(v) Administration expenses

(vi) Other expenses

(vii) Finance costs

(viii) Recent developments

(ix) Exceptional and extraordinary items and audit qualifications

12.2.2 Review of our results of operations

12. FINANCIAL INFORMATION (Cont’d)

Rentak Segar is a wholly-owned Bumiputera company specialising in the fields of

51,754 100.00 65,676 100.00 68,008 100.00 115,200 100.00

29,972 100.00 33,981 100.00

12. FINANCIAL INFORMATION (Cont’d)

Revenue by customers’ industry

Power 51,754 100.00 63,833 97.19 61,812 90.89 110,638 96.04

51,754 100.00 65,676 100.00 68,008 100.00 115,200 100.00