sep 29, 2009 · research & development office c/o ntt msc sdn bhd. no. 43000 jalan apec, 63000...

Annual Report 2009

Nextnation Communication Berhad (660055-H)

Nextnation Communication Berhad(660055-H)

Corporate OfficeUnit 909 Block F Phileo Damansara One, No. 9, Jalan 16/11, 46350 Petaling Jaya, Selangor Darul Ehsan, Malaysia.

Tel : +603 7494 4839 Fax : +603 7494 4836

Research & Development Officec/o NTT MSC Sdn Bhd. No. 43000 Jalan APEC, 63000 Cyberjaya, Selangor Darul Ehsan, Malaysia

Tel : +603 8311 2000 Fax : +603 8311 2090

www.nextnationnet.com

Nextnation C

omm

unication Berhad

(660055-H)

Annual R

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CONTENTS

CorporateInformation 2

GroupStructure 3

Directors’Profile 4

Management’sDiscussion 6

StatementOnCorporateGovernance 8

AuditCommitteeReport 13

StatementOnInternalControl 18

Directors’ResponsibilityStatementInRelationToTheFinancialStatements 20

OtherComplianceInformation 21

ReportandFinancialStatements 22

ListofProperties 70

AnalysisofShareholdings 71

NoticeofAnnualGeneralMeeting 73

ProxyForm enclosed

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BOARD OF DIRECTORSTeyPorYee Chief Executive Officer/Managing DirectorSeePohYee Executive DirectorYapSiokTeng(F) Independent Non-Executive DirectorFuLitFung Independent Non-Executive DirectorLeouThiamLai Independent Non-Executive DirectorUngkuA.RazakBinUngkuA.Rahman Independent Non-Executive Director

AUDIT COMMITTEE RESEARCH & DEVELOPMENT OFFICEYapSiokTeng(F)Chairperson NextnationNetworkSdnBhdFuLitFung c/oNTTMSCSdnBhdLeouThiamLai No.43000JalanAPEC 63000CyberjayaNOMINATION COMMITTEE SelangorDarulEhsanFuLitFungChairman Tel:+60383112000YapSiokTeng(F) Fax:+60383112090

REMUNERATION COMMITTEE AUDITORSYapSiokTeng(F)Chairperson Messrs.SJGrantThornton(AF:0737)TeyPorYee Level11-1,FaberImperialCourtFuLitFung JalanSultanIsmail 50250KualaLumpurCOMPANY SECRETARIES Tel:+60326924022ChuaSiewChuan Fax:+60327325119(MAICSANo.0777689) SHARE REGISTRARTanAiNing PFARegistrationServicesSdnBhd(MAICSANo.7015852) Level17,TheGardensNorthTower MidValleyCityREGISTERED OFFICE LingkaranSyedPutraLevel7,MenaraMilenium 59200KualaLumpurJalanDamanlela Tel:+60322643883PusatBandarDamansara Fax:+60322821886DamansaraHeights50490KualaLumpur PRINCIPAL BANKERSTel:+60320849000 MalayanBankingBerhadFax:+60320949940 HSBCBankMalaysiaBerhad CIMBBankBerhadCORPORATE OFFICEUnit909,BlockFPhileoDamansaraOne STOCK EXCHANGE LISTINGNo. 9, Jalan 16/11 Bursa Malaysia Securities Berhad –46350PetalingJaya ACEMarket SelangorDarulEhsanTel:+60374944839Fax:+60374944836

Corporate InformatIon

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Group StruCture

NextnationCommunication

Berhad(Malaysia)

OzuraSdn Bhd

(Malaysia)100%

NextnationCollections

Sdn Bhd(Malaysia)

100%

KotamasEdaran

Sdn Bhd(Malaysia)

100%

TaffuMedia

Sdn Bhd(Malaysia)

100%

DubaitechMarketingSdn Bhd

(Malaysia)100%

NextnationQahaar

Venture Pte Ltd(Singapore)

100% QahaarInfracomPte Ltd

(Singapore)100%

QahaarTelecomsPte Lted

(Singapore)20%

QahaarTelecomsSdn Bhd

(Malaysia)100%

NextnationInteractiveSdn Bhd

(Malaysia)100%

PudongOverseas

Capital Sdn Bhd(Malaysia)

100%

DivamasPromotions

Sdn Bhd(Malaysia)

100%

NextnationServicesSdn Bhd

(formerly known asGang Media Sdn Bhd)

(Malaysia)100%

PTNextnation

Prisma(Indonesia)

80%

Usape NelsonWirelessSdn Bhd

(Malaysia)100%

GodynamicInvestments

Limited(BVI)51%

VisionPhoenix

Group Limited(BVI)100%

SiamTouchWireless

Ltd(Thailand)

49%

PT SemestaTirta Antara

Raya(Indonesia)

84%

PT FlowerStar

Media(Indonesia)

84%

CodeWirelessPte Ltd

(Singapore)100%

ElasitasTechnologies

Limited(Indonesia)

62%

NextnationMobitech

India Pte Ltd(India)99%

OzuraPte Ltd

(Singapore)100%

PT ElasitasMultiKreasi

(Indonesia)97%

Vinamob VentureCompanyLimited

(Vietnam)100%

Nextnation NetworkSdn Bhd

(Malaysia)100%

Nextnation TechcitySdn Bhd

(Malaysia)100%

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DIreCtorS’ profIle

TEY POR YEEChief Executive Officer/Managing Director

TeyPorYee,33,aMalaysian,wasappointedastheChiefExecutiveOfficer/ManagingDirectorofNextnationCommunicationBerhad ('Nextnation' or 'Company') on5May2005. He is oneof the core foundersofNextnationgroupofcompanies ('NextnationGroup'or 'Group').HeobtainedhisBachelorofCommercedegree,majoringinBusinessAdministrationandFinance,fromtheUniversityofManitoba,Canadain1998.

PriortothefoundingofNextnationGroup,hewasashareholder,directorandseniorconsultanttoLiloMediaSdnBhd('Lilo'),acompanyengagesinresearch,designanddevelopmentofdatabaseandsystemintegrationactivities,untilhedisposedoffhisinterestatLiloinMay2004.AtLilo,hemanagedtogrowhisnetworkandexpertise,which ledhim to incorporate theNextnationGroup,enhancedshareholders'valueandsteeredthelistingofNextnationontheMESDAQMarket(nowknownasACEMarket)ofBursaMalaysiaSecuritiesBerhad.Inaddition,hisextensiveexperienceinelectronicmarketingande-commerceinfrastructurebuildinghasenabledhimtotapintomanybusinessopportunitiesandthatledtothesuccessofmanycompanies.

Presently,he sits as amemberon theRemunerationCommitteeof theCompany. Hedoesnotholdanydirectorshipontheboardofotherpubliclistedcompanies.

SEE POH YEEExecutive Director

SeePohYee,33,aMalaysian,wasappointedasanExecutiveDirectorandGroupChiefTechnologyOfficerofNextnationon5May2005.HeisalsooneofthecorefoundersoftheGroup.HeobtainedhisBachelorofEngineeringdegree,majoringinComputerSciencefromtheUniversityofManitoba,Canadain1998.

HebeganhiscareeratLiloasaChiefTechnologyOfficerwherehismainresponsibilitywastodesignanddeveloplarge-scaleapplicationsandsystems.Now,intheGroup,heisresponsibleforthearchitecturaldesignofMINDCEPplatform,SOHOMOBILE,mCommerce-SuitandSMSJET,andleadingateamofsystemengineerstoperformsystemintegrationwithallcellularcommunications.Inthepastfour(4)years,hehassuccessfullybuiltupateamofknowledgeworkersandledtheGroupintothetechnologyage.Byembracingtheopensource concept, hehashelped theGroup to reduce significant cost of operations. In thesepast four (4)years,hisportfolioincludesprojectmanagement,systemdesignandsoftwaredevelopmentespeciallyinthefieldofmobileandinternettechnology.Hisvastexperienceinsystemengineering,applicationdesignandinformation technology, in-depthknowledgeandhighlycompetent skills inopen sourceplatformhas ledtheGroup to shine in the industry through the successfuldevelopmentand implementationofMINDCEP

platform,SMSJETandmCommerce-Suit.

Hedoesnotholdanydirectorshipontheboardofotherpubliclistedcompanies.

YAP SIOK TENG (F)Independent Non-Executive Director

YapSiokTeng,49,aMalaysian,wasappointedasanIndependentNon-ExecutiveDirectorofNextnationon5May2005.SheisafellowmemberoftheAssociationofCharteredCertifiedAccountantsandtheMalaysianInstituteofAccountants.Currently,sheispracticingaccountantinherownfirm,Yap&Associates,whichwassetupinOctober1994.Priortothat,shehasmorethanten(10)yearsofworkingexperienceinthefieldofaudit,accountancy,taxation,generalmanagementandcorporateadvisory.

She is the Chairperson of the Audit Committee and the Remuneration Committee, and a member of theNominationCommitteeof theCompany.Shedoesnotholdanydirectorshipontheboardofotherpubliclistedcompanies.

FU LIT FUNGIndependent Non-Executive Director

FuLitFung,40,aMalaysianwasappointedasan IndependentNon-ExecutiveDirectorofNextnationon

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24 March 2006. He is a graduate from Monash University, Melbourne, Australia. He began his careerwithYeoHiapSeng(Singapore)in1988andwasattachedtoanaccountingfirmin1992beforehejoineda multinational company in 1993. Prior to his current position, he was a Finance and AdministrationManager of BASIS Corporation Sdn Bhd, from 1999 to 2004. He is currently an executive director of aprivatelimitedcompanywhoseprincipalbusinessesaredealinginITgadgetsandaccessories,photographyequipmentandaccessoriesandalsoprovisionofhigh-endsecuritysystemsforlocalandinternationalmarkets.

Mr.FucurrentlysitsastheChairmanoftheNominationCommittee,andamemberoftheAuditCommitteeandtheRemunerationCommitteeoftheCompanyrespectively.Hedoesnotholdanydirectorshipontheboardofotherpubliclistedcompanies.

LEOU THIAM LAIIndependent Non-Executive Director

LeouThiamLai,53,aMalaysianwasappointedasanIndependentNon-ExecutiveDirectoroftheCompanyon8March2007.HegraduatedfromTunkuAbdulRahmanCollege,KualaLumpur.Upongraduation,hebeganhiscareerwithAijefiri,Siva.HengandMonteirountil1981andinBaharomHamdanfrom1981to1984.UponobtainingapprovalforhisAuditLicensefromtheTreasuryDepartmentofMalaysia,heestablishedLeou&Associates,CharteredAccountantsin1988,inwhichheremainsapartner.HeisamemberoftheMalaysianInstituteofAccountants,afellowmemberofTheCharteredAssociationofCertifiedAccountants(UK)andafellowmemberoftheMalaysianInstituteofTaxation.

MrLeouisamemberoftheAuditCommitteeoftheCompany.ApartfromservingasanIndependentNon-ExecutiveDirectoroftheCompany,heisalsoaDirectorofDeGemBerhad,I-PowerBerhad,UnitedBintangBerhadandRamuniaHoldingsBerhadrespectively,beingcompanieslistedontheBursaMalaysiaSecuritiesBerhad (BursaSecurities),andBerjayaHoldings (HK)Limited,acompany listedon theHongKongStockExchange.

UNGKU A. RAZAK BIN UNGKU A. RAHMANIndependent Non-Executive Director

UngkuA.Razak,54,aMalaysianwasappointedasanIndependentNon-ExecutiveDirectoroftheCompanyon2June2008.HegraduatedfromCranfieldSchoolofManagement,Cranfield,England,holdingtheMastersofBusinessAdministration.HebeganhiscareerwithESSOMalaysiaSdnBhdin1978,andwasalsoattachedtoTheKualaLumpurStockExchangeGroupofCompanies,nowknownasBursaMalaysiafor20years.HewastheChiefInformationOfficerofK&NKenangaHoldingsBerhadfrom2005to2007.

MrUngkudoesnotholdanydirectorshipontheboardofotherpubliclistedcompanies.

Conflict of Interest and Family Relationships with Any Director and/or Major ShareholderNoneoftheDirectorshaveanyconflictofinterestwiththeCompany.BesidesMr.TeyPorYee,whoisthebrotherofMr.TeyPorChen,amajorshareholderof theCompany,noneof theotherdirectorshas familyrelationshipwithanydirectorand/ormajorshareholder.

Convictions for Offences (within 10 years, other than traffic offences)NoneoftheDirectorshaveanyconvictions.

Securities Held in the Company and its SubsidiariesThedetailsaredisclosedintheDirector'sReportonpage23ofthisAnnualReport.

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OnbehalfoftheBoardofDirectorsoftheNextnationCommunicationBhd,wearepleasedtopresenttheAnnualReportandtheAuditedFinancialStatementsforthefinancialyearended30April2009.

2008 had been a very tough and challenging year for many countries. The economy turmoil in US hadaffectedmanycountriesaroundtheworld.TherewasnoexceptionfortheGroup.Companiesstartedcostcutting,holdingbackonexpandingintootherbusinessandconcentrateinthecorebusiness.ItistoughyearfortheGroup;howeverweovercamethedifficultiesandobstacles.

FINANCIAL PERFORMANCEFor the financialyearended30April2008, theGrouprecordeda lossattributable toshareholdersof thecompanyamountedtoRM8.63million.HowevertheGroupmadeaturnaroundandpostedalossattributabletoshareholdersofthecompanywhichamountedtoRM6.71million.

CostsavingspractisedbytheGrouphasresultedintheimprovementofthefinancialperformance.TheoveralldeteriorationinrevenueandfinancialperformancewasmainlyattributabletooveralllowerdemandfortheCompany’sproductandservicesasaresultofthecurrentmarketcondition.

INDUSTRY TREND AND DEVELOPMENTTelecommunicationindustryasawholewasnotsparedbytheglobaleconomycrisis.However,theimpactisnotasstrongduetothisindustrybeingneededtoconnectpeopleallaroundtheworldtokeepthebusinessactivitiesgoing.Inshort,regardlessoftheglobaleconomycondition,thedemandoftelecommunicationisandwillremain,stronginthefuture.

RESEARCH AND DEVELOPMENTOvertheyears,theGrouphasalwaysemphasisedonResearchandDevelopment(“R&D”)byfocusingonupgradingitsplatformtosupportthelatestmobiledevices,andtoremaincompetitiveandfacilitatefuturegrowth,particularlyinthedynamicmobileindustryitoperatesin.TheGroupisverymuchfocusedonR&Dactivities in the development of new mobile multimedia technologies within the shores of Malaysia andregionally.Forthefinancialyearended30April2009,theGrouphadinvestedatotalamountofapproximatelyRM5.3millionintoR&Dactivities.

FUTURE PROSPECTSTheGroupwillcontinue topenetrate into theexistingmarket,andalsoexploreopportunitiesbyusing itsexpertiseandbusinessnetworktoexpandintonewones.TheGroupwillcontinuetoemphasiseoninvestmentintheareaofR&Dofnewtechnologiesintheplatformandmobilecontentbusiness.

Weareoptimistic that theGroup is able tomaintaingood results in thenext2quarters.TheGroupwillconcentrateonitscorebusiness,inthemeantimealsoexploreintonewbusinessestobringtheGroupintogreaterheights.

CORPORATE SOCIAL RESPONSIBILITYWhile focusing on our business and strengthening the Group performance, we have not forgotten ourcorporatesocialresponsibilityforourcommunity.Wehaveorganisedteambuildingtrainingtostrengthentherelationshipandbondamongtheemployees.Thisistoprovideaharmoniousenvironmentfortheemployeestoworkin.

In addition, the Group had also share festive moments by celebrating Deeparaya with the less fortunateindividualsinthespiritofmuhibbahandtogethernessatPPRKampungLimau.

manaGement’S DISCuSSIon

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WORD OF APPRECIATIONTheManagementwishestoextendoursinceregratitudeandappreciationtotheBoardmemberandstafffortheirhardwork,commitmentandloyalty.

Thankyou!

The Management Team of Nextnation Communication Berhad

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Statement on Corporate GovernanCe

TheBoardofDirectors('Board')iscommittedtoensurethatthehigheststandardsofCorporateGovernancearepractised throughout theGroupas a fundamentalpartofdischarging itsduties and responsibilities toprotectandenhanceshareholders'valueandsupporttheGroup'scontinuedgrowthandsuccess.TheBoardcommitstoobserveandpracticetowardsensuringfullapplicationoftheprinciplesofcorporategovernanceassetoutinPart1oftheMalaysianCodeonCorporateGovernance('theCode')andhad,totheirbestability,compliedwiththebestpracticesassetoutinPart2oftheCode.

DIRECTORS

Board CompositionTheBoardconsistsofsix(6)members;comprisingoftwo(2)ExecutiveDirectorsandfour(4)IndependentNon-ExecutiveDirectors.Morethanonethird(1/3)oftheBoardcomprisesofIndependentNon-ExecutiveDirectors.TheBoardisoftheopinionthatthecompositionoftheBoardfairlyreflectsabalanceofexecutiveandnon-executivedirectorstoensurethattheinterestofnotonlytheGroup,butalsothestakeholdersandthepublicingeneralarerepresentedinallbusinessstrategiesformulationandadoption.

Indeed,theBoardismade-upofdirectorswhopossesstherelevantexperience,knowledgeandskillsinrunningtheday-to-dayoperationsoftheGroupbyencouragingproactivediscussionduringtheBoardmeetingsandvariousmeetingsofBoardCommitteesinthestrategicdecision-makingprocess.

TheprofileofeachDirectorispresentedonpages4to5ofthisAnnualReport.

Duties and Responsibilities of the BoardTheBoardtakesfullresponsibilityfortheperformanceoftheGroup.TheBoard'sdutiesandresponsibilitiesincludedeterminingtheGroup'soverallstrategicplans,performingperiodicreviewofbusinessandfinancialperformance,engaginginsuccessionplanning,andadoptingpracticalriskmanagementandinternalcontrolsfortheGroup.Asatthedateofthisreport,theBoardisassessingthepotentialcandidatesforthepositionofChairmanoftheBoard.

TheroleandresponsibilityoftheChiefExecutiveOfficer/ManagingDirectorisdistinct,separateandclearlydefined.TheChiefExecutiveOfficer/ManagingDirector,assistedbytheDirectorshasoverallresponsibilityinworkingtowardsachievingstrategicgoalsandobjectivesfortheGrouptogetherwiththeimplementationofGroup'spolicies,corporatestrategiesanddecisions.

TheBoardcompriseshighlyreputableandprofessionalpersonsofcaliber,creditabilityandhasthenecessaryskillsandexperiencetobringanindependentjudgement.Withtheircombinedexperienceandknowledgetheyprovidesoundadviceand impartial judgement for thebenefitsof theCompany, itsshareholdersandstakeholders.MsYapSiokTenghasbeenidentifiedbytheBoardtobetheSeniorIndependentNon-ExecutiveDirectoroftheBoardtowhomconcernsmaybeconveyed.

Appointments to the BoardInordertocomplywithgoodpracticefortheappointmentofnewdirectorsthroughaformalandtransparentprocedure, theBoardhas setupaNominationCommitteewhichcomprisedexclusivelyofnon-executivedirectors,toevaluateandrecommendcandidatesfordirectorshiptotheBoard.

Re-election of DirectorsInaccordancewiththeCompany'sArticlesofAssociation(Article83),onethird(1/3)ofthedirectorsshallretirebyrotationateachAnnualGeneralMeetingprovidedalwaysthatalldirectors(exceptfortheManagingDirector) shall retire fromofficeat leastonce in three (3)years.Thedirectors retiring fromofficeshallbeeligibleforre-electionbytheshareholders.Thedirectorstoretireshallbethedirectorswhohavebeenlongestinofficesincetheirlastelection.

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Board Meetings and Supply of Information to the BoardTheBoardmeetsat least four (4) timesand,asandwhen required,during the financialyear to,amongstothers,reviewandapprovethequarterlyfinancialstatementsandtheannualauditedfinancialstatements.TheagendafortheBoardMeetings,togetherwithappropriatereportsandinformationontheCompany'sbusinessoperations,andproposalpapersfortheBoard'sconsiderationarecirculatedtoallthedirectorspriortothemeetings,insufficienttimesothatalldirectorsaregiventimetoprepare,obtainadditionalinformationorclarificationpriortothemeetingtoensureasmoothproceedingofeachmeeting.

TheproceedingsandresolutionsreachedateachBoardMeetingaredocumentedintheminutesandsignedbyChairmanofthenextBoardMeeting.BesidesBoardMeetings,theBoardexercisescontrolonmattersthatrequireBoard'sapprovalthroughcirculationofDirectors'Resolutions.Theseminutesarekeptattheregisteredoffice.

AlldirectorshaveaccesstoallinformationwithintheCompanyaswellastheadvicesandservicesofthecompany secretarywhetherasa fullBoardor in their individualcapacity toassist them in theirdecisionmaking.Wherenecessary,thedirectorsmayengageindependentprofessionalsattheCompany'sexpenseonspecializedissuestoenablethedirectorstodischargetheirdutieswithadequateknowledgeonthemattersbeingdeliberated.

TheBoardheldfive(5)meetingsduringthefinancialyearended30April2009andtheattendanceatthemeetingswereasfollows:

Name Designation Attendance

TeyPorYee ChiefExecutiveOfficer/ManagingDirector 5/5

SeePohYee ExecutiveDirector 5/5

YapSiokTeng IndependentNon-ExecutiveDirector 5/5

FuLitFung IndependentNon-ExecutiveDirector 5/5

LeouThiamLai IndependentNon-ExecutiveDirector 5/5

UngkuA.RahmanBinUngkuA.Razak IndependentNon-ExecutiveDirector 3/5

Training of DirectorsAlltheDirectorshaveattendedtheMandatoryAccreditationProgrammeprescribedbyBursaSecuritiesfordirectorsofpubliclistedcompanies.Thedirectorswillcontinuetoattendrelevanttrainingsandeducationprogrammes inorder tokeep themselvesabreastof the latestdevelopmentanddischarge theirdutiesandresponsibilitiesmoreeffectively.

Forthefinancialyearended30April2009,theDirectorsoftheCompanyhaveattendedthefollowingtrainingprogrammes:-

Mr.TeyPorYeeMr.SeePohYeeMr.FuLitFung

12 – 14 December 2008 BuildaPositiveMindinLeadershipCommunicationandTeamSpiritTraining

Ms.YapSiokTeng(F)

2September2008 2009BudgetTalkbyMalaysianInstituteofTaxation


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Mr.LeouThiamLai

19&20August2008 NationalTaxConference2008

3September2008 NationalSeminaronTaxation2008

29October2008 SSME-LodgmentBriefing

17March2009 TaxationSeminar2009

UngkuA.RahmanBinA.Razak

23&24September2008 MandatoryAccreditationProgrammeforDirectorsofPublicListedCompanies

BOARD COMMITTEESTheBoardhasestablishedthefollowingcommittees:

a) Audit CommitteeThetermsofreferenceandactivitiesduringthefinancialyearoftheAuditCommitteearesetoutundertheAuditCommitteeReportonpages13to17ofthisAnnualReport.

b) Remuneration CommitteeTheRemunerationCommitteecomprisesofthefollowingmembers:

Name Designation

YapSiokTeng(F)(Chairperson) IndependentNon-ExecutiveDirector

TeyPorYee ChiefExecutiveOfficer/ManagingDirector

FuLitFung IndependentNon-ExecutiveDirector

The Remuneration Committee is responsible for assessing the remuneration packages of the ExecutiveDirectors,whichisstructuredtolinkwiththecorporateandindividualperformance.FortheNon-ExecutiveDirectors,theremunerationwillbepackagedtoreflecttheexperienceandlevelofresponsibilitiesundertaken.TherespectiveExecutiveDirectorswouldabstainfromparticipatingindecisionsregardingtheirrespectiveremunerationpackage.

Subjecttoshareholders'approvalingeneralmeeting,theBoardasawholedeterminesthelevelofremunerationof thenon-executivedirectorsof theCompany. The remunerationof thenon-executivedirectorswillbereviewedinordertotakeintorecognitionoftheirprincipaldutiesandresponsibilitiesundertheCode.

Director's RemunerationThe aggregate remuneration of the Directors of the Company for the financial year under review is asfollows:

Executive Directors RM

Non-Executive DirectorsRM

TotalRM

Fee - 94,000 94,000

Salaryandotheremoluments 684,000 - 684,000

Bonusandbenefits-in-kind - - -

Total 684,000 94,000 778,000


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ThenumberofdirectorsoftheCompanywhosetotalremunerationsduringthefinancialyearunderreviewthatfallwithinthefollowingbandsareasfollows:

Range of Remuneration Number of Executive Directors Number of Non-Executive Directors

RM50,000andbelow - 4

RM50,001 – RM100,000 - -

RM100,001 – RM150,000 - -

RM150,001 – RM200,000 - -

RM200,001 – RM250,000 - -

RM250,001 – RM300,000 2 -

Total 2 4

The only area of non-compliance with the Code is the disclosure of remuneration of each Director. TheBoardbelievesthatthisinformationwillnotaddsignificantlytotheunderstandingandtheevaluationoftheCompany’sGovernance.

c) Nomination CommitteeTheNominationCommitteecomprisesofthefollowingmembers:

Name Designation

FuLitFung(Chairman) IndependentNon-ExecutiveDirector

YapSiokTeng IndependentNon-ExecutiveDirector

ThemainresponsibilitiesofthisCommitteearetoproposeandrecommendnewcandidatestotheBoardonanon-goingbasis,ifnecessaryandtoannuallyreviewthemixofskillsandexperiencesandotherqualities,includingcorecompetencieswhichthedirectorsshouldpossessinordertoensurethattheeffectivenessandefficiencyoftheBoard.

ACCOUNTABILITY AND AUDIT

a) Financial ReportingTheBoardhavetakenreasonablestepstoprovideafairandbalanceassessmentoftheCompany'sfinancialperformanceandprospects.Inthisrespect,theAuditCommitteeassiststheBoardwiththeoverseeingoftheCompany'sfinancialreportingprocessandthequalityofthefinancialreporting.

b) Internal ControlTheBoardrecognizestheimportanceofmaintainingasoundsystemofinternalcontrolwhichcoverstheriskmanagement, financial,organizational,operationalandcompliancecontrols.TheBoardacknowledges itsresponsibilityandaccountabilityfortheGroup'ssystemofinternalcontrolandforreviewingtheeffectiveness,adequacyandintegrityofthissystem.

InformationontheGroup'sinternalcontrolispresentedintheStatementofInternalControlonpages18to19ofthisAnnualReport.


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c) Relationship with AuditorsThe Group's independent external auditors hold an essential role for the shareholders by enhancing thereliabilityoftheGroup'sfinancialstatementsandprovidingassuranceofthereliabilitytousersofthefinancialstatements. The Company has always maintained a formal and transparent relationship with its externalauditorsinseekingprofessionaladviceandensuringcompliancewiththeaccountingstandardsinMalaysia.

SHAREHOLDERS

a) Relationship with ShareholdersTheBoardrecognizestheneedfortransparencyandaccountabilitytotheCompany'sshareholdersaswellasregularcommunicationwithitsshareholders,stakeholdersandinvestorsontheperformanceandmajordevelopmentsintheCompany.TheCompanyensuresthattimelyreleasesofthequarterlyfinancialresults,press releasesandcorporateannouncementsaremade to its shareholdersand investors,whichareclear,unambiguous,succinct,accurateandcontainssufficientandrelevantinformationtoenableshareholdersandinvestorstomakeinformedinvestmentdecisions.

b) Annual General Meeting ('AGM')

The AGM is the principal forum for dialogue with shareholders. At the Company's AGM, shareholdersparticipationisalwaysencouragedandwelcomed.Itisausefulopportunityforthedirectorstocommunicateface to facewithshareholdersand topresent theCompany'sbusinessoperations,performanceand futureplans. The directors are prepared to answer queries and to receive feedback from the shareholders. Theexternal auditors are also present to provide their professional and independent clarification on issues ofconcernraisedbytheshareholders,ifany.

NoticeoftheAGMandAnnualReportaresentoutwithsufficientnoticebeforethedateofthemeeting.

Where Extraordinary General Meetings are held to obtain shareholders' approval on certain business orcorporateproposals,comprehensivecircularstoshareholderswouldbesentwithinprescribeddeadlinesinaccordancewithregulatoryandstatutoryprovisions.


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auDIt CommIttee report

TheAuditCommitteewas established to act as aCommitteeof theBoardofDirectors ('Board')with theobjective of assisting the Board in the areas of corporate governance, systems of internal controls, riskmanagementandfinancialreportingoftheGroupto:

evaluatethequalityoftheauditsperformedbytheinternalandexternalauditors;

provideassurancethatthefinancialinformationpresentedbythemanagementisrelevant,reliableandtimely;

overseecompliancewithlawsandregulationsandobservanceofapropercodeofconduct;and

determinethequality,adequacyandeffectivenessoftheGroup'scontrolenvironment.

Composition and MeetingsThemembersoftheAuditCommittee,attendanceateachAuditCommitteeMeetingduringthefinancialyearended30April2009areasfollows:

Name Designation Status of Directorship Attendance

YapSiokTeng(F) Chairperson IndependentNon-ExecutiveDirector 5/5

FuLitFung Member IndependentNon-ExecutiveDirector 5/5

LeouThiamLai Member IndependentNon-ExecutiveDirector 5/5

Terms of Reference

Composition of membersThe Board shall appoint the Audit Committee members from amongst themselves, comprising no fewerthanthree(3)non-executivedirectors.ThemajorityoftheAuditCommitteemembersshallbeindependentdirectors.

In this respect, the Board adopts the definition of “independent director” as defined under the Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) for the ACE Market (“ACE LR”).

Allmembersof theAuditCommitteeshallbefinancially-literateandat leastone(1)memberof theAuditCommitteemustbe:-

• amemberoftheMalaysianInstituteofAccountant(“MIA”);or

• ifheisnotamemberofMIA,hemusthaveatleastthree(3)yearsofworkingexperienceand:

(i) hemusthavepassedtheexaminationsspecifiedinPartIoftheFirstScheduleoftheAccountantsAct1967;or

(ii) hemustbeamemberofoneoftheassociationsoftheaccountantsspecifiedinPartIIoftheFirstScheduleoftheAccountantsAct1967;or

• fulfilssuchotherrequirementsasprescribedorapprovedbyBursaSecurities.

NoalternatedirectoroftheBoardshallbeappointedasamemberoftheAuditCommittee.

ThetermofofficeandperformanceoftheAuditCommitteeandeachofitsmembersshallbereviewedbytheBoardatleastonceeverythree(3)yearstodeterminewhethersuchAuditCommitteeandmembershavecarriedouttheirdutiesinaccordancewiththeirtermsofreference.

Retirement and resignation IfamemberoftheAuditCommitteeresigns,dies,orforanyreasonceasestobeamemberresultinginnon-compliancetothecompositioncriteriaasstatedinparagraph1above,theBoardshallwithinthree(3)monthsoftheeventappointsuchnumberofthenewmembersasmayberequiredtofillthevacancy.

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Chairman ThemembersoftheAuditCommitteeshallelectaChairmanfromamongsttheirnumberwhoshallbeanindependentdirector.

In theabsenceof theChairmanof theAuditCommittee, theothermembersof theAuditCommitteeshallamongstthemselveselectaChairmanwhomustbeindependentdirectortochairthemeeting.

Secretary TheCompanySecretary shallbe theSecretaryof theAuditCommitteeandasa reportingprocedure, theMinutesshallbecirculatedtoallmembersoftheBoard.

MeetingsTheAuditCommittee shallmeet regularly,withduenoticeof issues tobediscussed,and shall record itsconclusionsindischargingitsdutiesandresponsibilities.Inaddition,theChairmanmaycallforadditionalmeetingsatanytimeattheChairman’sdiscretion.

Upontherequestoftheexternalauditor,theChairmanoftheAuditCommitteeshallconveneameetingoftheAuditCommitteetoconsideranymattertheexternalauditorbelievesshouldbebroughttotheattentionofthedirectorsorshareholders.

NoticeofAuditCommitteemeetingsshallbegiven toall theAuditCommitteemembersunless theAuditCommitteewaivessuchrequirement.

TheChairmanoftheAuditCommitteeshallengageonacontinuousbasiswithseniormanagement,suchastheChairman,theChiefExecutiveOfficer,theFinanceDirector,theheadofinternalauditandtheexternalauditorsinordertobekeptinformedofmattersaffectingtheCompany.

TheFinanceDirector,theheadofinternalauditandarepresentativeoftheexternalauditorsshouldnormallyattendmeetings.OtherBoardmembersandemployeesmayattendmeetingsupontheinvitationoftheAuditCommittee.TheAuditCommitteeshallbeabletoconvenemeetingswiththeexternalauditors,theinternalauditorsorboth,withoutexecutiveBoardmembersoremployeespresentwheneverdeemednecessaryandatleasttwiceayearwiththeexternalauditors.

Questions arising at any meeting of the Audit Committee shall be decided by a majority of votes of thememberspresent,andin thecaseofequalityofvotes, theChairmanof theAuditCommitteeshallhaveasecondorcastingvote.

MinutesMinutesofeachmeetingshallbekeptattheregisteredofficeanddistributedtoeachmemberoftheAuditCommitteeandalsototheothermembersoftheBoard.TheAuditCommitteeChairmanshallreportoneachmeetingtotheBoard.

TheminutesoftheAuditCommitteemeetingshallbesignedbytheChairmanofthemeetingatwhichtheproceedingswereheldorbytheChairmanofthenextsucceedingmeeting.

QuorumThe quorum for the Audit Committee meeting shall be the majority of members present whom must beindependentdirectors.

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ObjectivesTheprincipalobjectivesof theAuditCommitteeare toassist theBoard indischarging its statutorydutiesandresponsibilitiesrelatingtoaccountingandreportingpracticesof theholdingcompanyandeachof itssubsidiaries.Inaddition,theAuditCommitteeshall:-

(a) evaluatethequalityoftheauditsperformedbytheinternalandexternalauditors;

(b) provide assurance that the financial information presented by management is relevant, reliable andtimely;

(c) overseecompliancewithlawsandregulationsandobservanceofapropercodeofconduct;and

(d) determinethequality,adequacyandeffectivenessoftheGroup'scontrolenvironment.

AuthorityTheAuditCommitteeshall,inaccordancewithaproceduretobedeterminedbytheBoardandattheexpenseoftheCompany,

(a) haveexplicitauthoritytoinvestigateanymatterwithinitstermsofreference,theresourcestodoso,andfullaccesstoinformation.Allemployeesshallbedirectedtoco-operateasrequestedbymembersoftheAuditCommittee.

(b) havefullandunlimited/unrestrictedaccesstoallinformationanddocuments/resourceswhicharerequiredtoperformitsdutiesaswellastotheinternalandexternalauditorsandseniormanagementoftheCompanyandGroup.

(c) obtainindependentprofessionalorotheradviceandtoinviteoutsiderswithrelevantexperiencetoattend,ifnecessary.

(d) havedirectcommunicationchannelswiththeexternalauditorsandperson(s)carryingouttheinternalauditfunctionoractivity(ifany).

wheretheAuditCommitteeisoftheviewthatthematterreportedbyittotheBoardhasnotbeensatisfactorilyresolvedresultinginabreachoftheACELR,theAuditCommitteeshallpromptlyreportsuchmattertoBursaSecurities.

Duties and Responsibilities ThedutiesandresponsibilitiesoftheAuditCommitteeareasfollows:-

(a) Toconsider theappointmentof theexternal auditor, theaudit feeandanyquestionof resignationordismissal;

(b) Todiscusswiththeexternalauditorbeforetheauditcommences,thenatureandscopeoftheaudit,andensureco-ordinationwheremorethanoneauditfirmisinvolved;

(c) Toreviewwiththeexternalauditorhisevaluationofthesystemofinternalcontrolsandhisauditreport;

(d) To review the quarterly and year-end financial statements of the Board, focusing particularly on –

• anychangeinaccountingpoliciesandpractices;

• significantadjustmentsarisingfromtheaudit;

• thegoingconcernassumption;and

• compliancewithaccountingstandardsandotherlegalrequirements.

(e) Todiscussproblemsandreservationsarisingfromtheinterimandfinalaudits,andanymattertheauditormaywishtodiscuss(intheabsenceofmanagement,wherenecessary);


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(f) Toreviewtheexternalauditor’smanagementletterandmanagement’sresponse;

(g) Todothefollowing,inrelationtotheinternalauditfunction:-

• reviewtheadequacyofthescope,functions,competencyandresourcesoftheinternalauditfunction,andthatithasthenecessaryauthoritytocarryoutitswork;

• reviewtheinternalauditprogrammeandresultsoftheinternalauditprocessand,wherenecessary,ensurethatappropriateactionsaretakenontherecommendationsoftheinternalauditfunction;

• reviewanyappraisalorassessmentoftheperformanceofmembersoftheinternalauditfunction;

• approveanyappointmentorterminationofseniorstaffmembersoftheinternalauditfunction;and

• takecognizanceofresignationsofinternalauditstaffmembersandprovidetheresigningstaffmemberanopportunitytosubmithisreasonsforresigning.

(h) To consider any related party transactions and conflict of interest situation that may arise within theCompanyorGroupincludinganytransaction,procedureorcourseofconductthatraisesquestionsofmanagementintegrity;

(i) Toreportitsfindingsonthefinancialandmanagementperformance,andothermaterialmatterstotheBoard;

(j) Toconsiderthemajorfindingsofinternalinvestigationsandmanagement’sresponse;

(k) Toverifytheallocationofemployees’shareoptionscheme(“ESOS”)incompliancewiththecriteriaasstipulatedintheby-lawsofESOSoftheCompany,ifany;

(l) Todeterminetheremitoftheinternalauditfunction;

(m) ToconsiderothertopicsasdefinedbytheBoard;and

(n) ToconsiderandexaminesuchothermattersastheAuditCommitteeconsidersappropriate.

Summary of ActivitiesThemainactivitiesoftheAuditCommitteeindischargingitsfunctionsanddutiesduringthefinancialyearended30April2009wereasfollows:

Reviewed with the external auditors the results of the audit, the audit reports and the managementletters;

Reviewed the unaudited quarterly financial statements of the Group and ensured compliance withapprovedaccountingstandards,otherlegalandregulatoryrequirements,beforerecommendingthemforBoard'sapproval;

Reviewed theaudited financial statementsof theGroupand theCompanyprior to submission to theBoardfortheirconsiderationandapproval;

ReviewedtheInternalAuditReportsonfindings,recommendationsandmanagementresponsestheretoandtoensurethatmaterialfindingsareadequatelyaddressedbyManagement.

Summary of Internal Audit FunctionTheAuditCommitteeissupportedbyanindependentandadequatelyresourcedinternalauditfunction.TheAuditCommitteeisawareofthefactthananindependentandadequatelyresourcedinternalauditfunctionisessentialtoassisttheAuditCommitteeinthedischargeofitsdutiesandresponsibilities.

TheGrouphasoutsourcedtheinternalauditfunctiontoBDOGovernanceAdvisorySdnBhdsince1August2006.BDOGovernanceAdvisorySdnBhdperformedauditandreviewalloperatingunitswithintheGroup,withemphasisonprincipalrisksareas.BDOGovernanceAdvisorySdnBhdadoptedariskbasedapproachtowardsplanningandconductofauditswhichispartlyguidedbytheCorporateRiskManagementframework.TheGrouphaschangedtheinternalauditfunctiontoSundar&Associatesfrom1June2009.Theirscopeofworkisaccordancewiththeinternalauditcharterisasfollows:


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Adequate,having regard to theobligationsof theGroupand itsdirectors tocomply to theSecuritiesComission(“SC”)Guidelinesandotherrelevantlegalandregulatoryrequirements;

SufficienttoenabletheGroup’sdirectortomakeproperassessmentofthefinancialpositionandprospectsoftheoverallNextnationGroup.

Identifyvariousopportunitiestoenhancetheexistingsystemsofinternalcontrolandprocessefficiency,andformulaterecommendationsforimprovements;

ProvideanopinionontheoverallstateofinternalcontroloftheGroup

TheinternalauditwillnotbeafinancialstatementsauditpursuanttotheCompaniesAct,1965andwillnotinvolveverificationofthefinancialstatementsnorrenderingandopiniononthefinancialstatements.

FurtherdetailsoftheactivitiesoftheinternalauditfunctionaresetoutintheStatementofInternalControlonpages18to19ofthisAnnualReport.


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TheMalaysiaCodeofCorporateGovernancerequireslistedcompaniestomaintainasoundsystemofinternalcontrols to safeguard shareholders’ investment and theGroup’s assets. TheListingRequirementsofBursaMalaysiarequiresdirectorsoflistedcompaniestoincludeastatementinannualreportonthestateoftheirinternalcontrol.TheBursa’sStatementinInternalControl:GuidanceforDirectorsofPublicListedCompanies(“Guidance”)providesguidanceforcompliancewiththeserequirements.SetoutbelowistheBoard’sInternalControlStatement,whichhasbeenpreparedinaccordancewiththeGuidance.

Responsibilities for Risk and Internal ControlsThe Board is responsible for establishing an appropriate control environment and framework on riskmanagement, organizational, financial and operational controls including reviewing of its adequacy andintegrity.

The Board recognizes the importance of sound internal controls and risk management practices to goodcorporategovernance.TheBoardaffirmsitsoverallresponsibilityfortheGroup’ssystemsofinternalcontrolsand riskmanagement,and for reviewing theadequacyand integrityof thosesystems. It shouldbenoted,however, that such system are designed tomanage rather than to eliminate the risk of failure to achievebusinessobjectives. Inaddition, it shouldbenoted thatanysystemcanprovideonlyreasonable,andnotabsolute,assuranceagainstmaterialmisstatementorloss.

Risk ManagementTheGroupmanagesriskonaday-to-daybasis.Asamatterofcourseinallbusinessdealingrisksareconsideredandappropriateactiontaken.

Duringtheyearunderreview,aspartofitscontinuouseffort,theboardappointedexternalconsultantstoreviewtheadequacyandintegrityofthesystemsofinternalcontrolsandrecommendopportunitiesforimprovement,wherenecessary.Theseareintendedtofurtherstrengthentheinternalcontrolframework.

BDOGovernanceAdvisorySdnBhd(“BDOGA”)wasappointedastheGroup’sinternalauditserviceprovider.BDOGAreviewedtheinternalcontrolsinthekeyactivitiesoftheGroup’sbusinessbasedonadetailedannualauditplanapprovedbytheAuditCommittee.Arisk-basedapproachwasadoptedandtheauditfindingsandreportwerereporteddirectlytotheAuditCommittee.

Thecostsincurredfortheinternalauditfunctioninrespectofthefinancialyearended30April2009amountedtoRM66,000.

Other Key Elements of Internal ControlsTheGroup’sotherkeyelementsofinternalcontrolareasfollows:

• Clearly defined delegation of responsibilities to the management and operating units, includingauthorizationlevelsforkeyaspectsofbusiness;

• Clearlydocumentedinternalpolicies,guidelines,proceduresandmanual,whichareupdatedfromtimetotime;

• Regularmeetingsareheldatoperationalandmanagementlevelstoidentifyandresolvebusiness,financial,operationalandmanagementissuedandaddressweaknessesandimproveefficiency;

• Detailedbudgetingandreportingofoperatingresults,balancesheetsandcashflowswithregularreviewbythemanagement;

• FinancialresultsarereviewedonaquarterlybasisbytheBoardandAuditCommittee;and

• InformalBoardandmanagementmeetingsatoperationallevelareheldduringthefinancialyearinordertoassessperformanceandcontrols.

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CONCLUSIONTheBoardisoftheviewthattherewerenosignificantweaknessesinthecurrentsystemofinternalcontroloftheGroupthatmayhavematerialimpactontheoperationsoftheGroupforthefinancialyearended30April2009.TheBoardandthemanagementwillcontinuetotakenecessarymeasuresandongoingcommitmenttostrengthenandimproveitsinternalcontrolenvironmentandprocesses.

ThisstatementhasbeenreviewedbytheexternalauditorsincompliancewithRule15.26(b)oftheACELR.

ThisStatementismadeinaccordancewiththeresolutionoftheBoarddated29August2009.

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ThisstatementispreparedasrequiredbytheACELR.

TheDirectorsarerequiredtopreparefinancialstatementswhichgiveatrueandfairviewofthestateofaffairsoftheGroupandtheCompanyasattheendofthefinancialyearandoftheresultsandthecashflowsoftheGroupandtheCompanyforthatyearthenended.

TheDirectorsconsiderthatinpreparingthefinancialstatements:

theGroupandtheCompanyhaveusedappropriateaccountingpoliciesandareconsistentlyapplied;

reasonableandprudentjudgementsandestimatesweremade;and

allapplicableapprovedaccountingstandardsinMalaysiahavebeenfollowed.

TheDirectorsareresponsibleforensuringthattheGroupandtheCompanymaintainaccountingrecordsthatdisclosewithreasonableaccuracythefinancialpositionoftheGroupandtheCompany,andwhichenablethemtoensurethatthefinancialstatementscomplywiththeCompaniesAct,1965.

The Directors have general responsibilities for taking such steps that appropriate systems are reasonablyavailabletothemtosafeguardtheassetsoftheGroupandtheCompany,andtopreventanddetectfraudandotherirregularitiesandmaterialmisstatements.Suchsystems,bytheirnature,canonlyprovidereasonableandnotabsoluteassuranceagainstmaterialmisstatement,lossorfraud.

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Share BuybackTherewasnosharebuybackoftheCompany'ssharesduringthefinancialyear.

Options, Warrants or Convertible SecuritiesTherewerenooptions,warrantsorconvertiblesecuritiesexercisedduringthefinancialyearastheCompanyhasnotissuedanyoptions,warrantsorconvertiblesecurities.

American Depository Receipts (“ADR”) And Global Depository Receipts (“GDR”)

TheCompanydidnotsponsoranyADRandGDRduringthefinancialyear.

Imposition of Sanctions and/or PenaltiesTherewerenopublicsanctionsand/orpenaltiesimposedontheCompanyanditssubsidiaries,directorsormanagementbytherelevantregulatorybodiesduringthefinancialyearunderreview.

Non-audit Fee Paid to External AuditorsTherewasnonon-auditfeepaidtotheexternalauditorsforthefinancialyearended30April2009.

Profit Estimate, Forecast Or Projection Or Unaudited ResultsTheCompanydidnotissueanyprofitestimate,forecastorprojectionforthefinancialyear.

Therearenoprofitforecastandunauditedresultreleasedwhichdifferbytenpercent(10%)ormorefromtheauditedresultforthefinancialyearended30April2009.

Profit GuaranteeTherewasnoprofitguaranteegivenbytheCompanyduringthefinancialyearunderreview.

Material Contracts Or LoansTherewerenomaterialcontractsorloansenteredintobytheCompanyanditssubsidiariesinvolvingDirectors'andmajorshareholders.

Revaluation Policy On Landed PropertiesTheCompanydoesnothaveapolicyonrevaluationoflandedproperties.

Status of Utilisation of ProceedsThecompanyhasnotimplementedanycorporateexerciseproposalduringthefinancialyearended30April2009.

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CONTENTSDirectors’Report 23

StatementbyDirectorsandStatutoryDeclaration 27

IndependentAuditors’Report 28

BalanceSheets 30

IncomeStatements 32

StatementsofChangesinEquity 33

CashFlowStatements 34

NotestotheFinancialStatements 36

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TheDirectorsherebysubmittheirreporttogetherwiththeauditedfinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended30April2009.

Principal ActivitiesTheCompanyisprincipallyaninvestmentholdingcompany.TheprincipalactivitiesofthesubsidiariesaresetoutinNote14totheFinancialStatements.Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringthefinancialyear.

Financial Results

GroupRM

CompanyRM

Netlossforthefinancialyear (7,197,823) (474,531)

Attributableto:-EquityholdersoftheCompany (6,710,624) (474,531)

Minorityinterests (487,199) -

(7,197,823) (474,531)

DividendsNodividendhasbeenpaidordeclaredbytheCompanysincetheendofpreviousfinancialyear.TheDirectorsdonotrecommendanydividendinrespectofthecurrentfinancialyear.

Reserves and ProvisionsTherewerenomaterialtransferstoorfromreservesorprovisionsduringthefinancialyearotherthanthosedisclosedintheNotestotheFinancialStatements.

Issue of Shares and DebenturesTherewerenosharesordebenturesissuedduringthefinancialyear.

Information On The Financial StatementsBeforethefinancialstatementsoftheGroupandoftheCompanyweremadeout,theDirectorstookreasonablesteps:-

(a) to ascertain that actionhadbeen taken in relation to thewritingoff of baddebts and themakingofallowancefordoubtfuldebtsandsatisfiedthemselvesthatallknownbaddebtshadbeenwrittenoffandthatadequateallowancehadbeenmadefordoubtfuldebts;and

(b) toensurethatanycurrentassetswhichwereunlikelytoberealisedintheordinarycourseofbusinessincludingtheirvaluesasshownintheaccountingrecordsoftheGroupandoftheCompanyhadbeenwrittendowntoanamountwhichtheymightbeexpectedsotorealise.

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Information On The Financial Statements (cont’d) (b) toensurethatanycurrentassetswhichwereunlikelytoberealisedintheordinarycourseofbusiness

includingtheirvaluesasshownintheaccountingrecordsoftheGroupandoftheCompanyhadbeenwrittendowntoanamountwhichtheymightbeexpectedsotorealise.

Atthedateofthisreport,theDirectorsarenotawareofanycircumstances:-

(a) whichwouldrendertheamountswrittenoffforbaddebtsortheamountoftheallowancefordoubtfuldebtsinthefinancialstatementsoftheGroupandoftheCompanyinadequatetoanysubstantialextent;or

(b) whichwouldrenderthevaluesattributedtocurrentassetsinthefinancialstatementsoftheGroupandoftheCompanymisleading;or

(c) whichhavearisenwhichrenderadherencetotheexistingmethodofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate.

Nocontingentorotherliabilityhasbecomeenforceableorislikelytobecomeenforceablewithintheperiodoftwelvemonthsaftertheendoffinancialyearwhich,intheopinionoftheDirectors,willormayaffecttheabilityoftheGroupandoftheCompanytomeetitsobligationsasandwhentheyfalldue,exceptasdisclosedinNote36totheFinancialStatements.

Atthedateofthisreport,theredoesnotexist:-

(a) anychargeontheassetsoftheGroupandoftheCompanywhichhasarisensincetheendofthefinancialyearwhichsecurestheliabilityofanyotherperson;or

(b) anycontingentliabilityoftheGroupandoftheCompanywhichhasarisensincetheendofthefinancialyear.

Other Statutory InformationTheDirectorsstatethat:-

Atthedateofthisreport,theyarenotawareofanycircumstancesnototherwisedealtwithinthisreportorthefinancialstatementswhichwouldrenderanyamountstatedinthefinancialstatementsmisleading.

IntheopinionoftheDirectors:-

(a) theresultsofoperationsoftheGroupandoftheCompanyduringthefinancialyearwerenotsubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature;and

(b) therehasnotarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportanyitem,transactionoreventofamaterialandunusualnaturelikelytoaffectsubstantiallytheresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearinwhichthisreportismade.

DirectorsTheDirectorswhohaveheldforofficesincethedateofthelastreportare:-

TeyPorYeeSeePohYeeYapSiokTengFuLitFungLeouThiamLaiUngkuA.RazakBinUngkuA.Rahman

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Directors (cont’d)TheDirectorsholdingofficeattheendofthefinancialyearandtheirbeneficialinterestsinordinarysharesoftheCompanyandofitsrelatedcorporationsduringthefinancialyearended30April2009asrecordedintheRegisterofDirectors’ShareholdingkeptbytheCompanyunderSection134oftheCompaniesAct,1965wereasfollows;

Number of ordinary shares of RM0.10 each

As at As atDirect interest 01.05.2008 Bought Sold 30.04.2009

TeyPorYee 10,177,500 - - 10,177,500SeePohYee 5,930,000 - - 5,930,000YapSiokTeng 150,000 - - 150,000

Deemed interest

TeyPorYee* 129,600,000 - - 129,600,000SeePohYee* 129,600,000 - - 129,600,000

*deemedinterestbyvirtueofhisshareholdingsinSmartTowerSdn.Bhd.

ByvirtueofTeyPorYeeandSeePohYeedirectandindirectinterestintheCompany,theyalsodeemedtohaveinterestinthesharesofallthesubsidiarycompaniestotheextenttheCompanyhasaninterestunderSection6AoftheCompaniesAct,1965.

Otherthanasdisclosedabove,theDirectorsattheendofthefinancialyeardidnotholdanyinterestinsharesoftheCompanyanditsrelatedcorporationsduringthefinancialyear.

Directors’ BenefitsDuringandattheendoffinancialyear,noarrangementssubsistedtowhichtheGroupandtheCompanyisaparty,withtheobjectorobjectsofenablingDirectorsoftheCompanytoacquirebenefitsbymeansoftheacquisitionofsharesinordebenturesoftheCompanyoranyotherbodycorporate.

Sincetheendofpreviousfinancialyear,noDirectorhasreceivedorbecomeentitledtoreceiveanybenefit(exceptasdisclosedintheNotestotheFinancialStatement)byreasonofacontractmadebytheCompanyorarelatedcorporationwiththeDirectororwithafirmofwhichtheDirectorisamember,orwithacompanyinwhichtheDirectorhasasubstantialinterest.

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AuditorsMessrsSJGrantThorntonhaveexpressedtheirwillingnesstocontinueinoffice.

SignedonbehalfoftheBoardofDirectorsinaccordancewitharesolutionoftheDirectors.

TEY POR YEE SEE POH YEE DIRECTORS DIRECTORS

KualaLumpur27August2009

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IntheopinionoftheDirectors,thefinancialstatementssetoutonpages30to69aredrawnupinaccordancewiththeprovisionsofCompaniesAct,1965andFinancialReportingStandardsinMalaysiasoastogiveatrueandfairviewofthefinancialpositionsoftheGroupandoftheCompanyasat30April2009andoftheresultsandcashflowsoftheGroupandoftheCompanyforthefinancialyearthenended.

OnbehalfoftheBoard

TEY POR YEE SEE POH YEE


Statutory DeclarationI, Tey Por Yee, being the Director primarily responsible for the financial management of NextnationCommunicationBerhad,dosolemnlyandsincerelydeclarethattothebestofmyknowledgeandbelief,thefinancialstatementssetoutonpages30to69arecorrectandImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

SubscribedandsolemnlydeclaredbytheabovenamedatKualaLumpurintheFederalTerritorythisdayof27August2009 TEY POR YEE

Beforeme:

T.THANDONEE RAJA GOPAL (NO. W228)CommissionerforOaths

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Report on the Financial StatementsWehaveauditedthefinancialstatementsofNextnationCommunicationBerhad,whichcomprisethebalancesheetsasat30April2009oftheGroupandoftheCompany,theincomestatements,statementsofchangesinequityandcashflowstatementsoftheGroupandoftheCompanyforthefinancialyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes,assetoutonpages30to69.

Directors’ Responsibilities for the Financial Statements

The directors of the Company are responsible for the preparation and fair presentation of these financialstatementsinaccordancewithFinancialReportingStandardsandtheCompaniesAct1965inMalaysia.Thisresponsibilityincludes:designing,implementingandmaintaininginternalcontrolrelevanttothepreparationandfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.

Auditors’ Responsibilities

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. Theprocedures selecteddependonour judgement, including the assessment ofrisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheCompany’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

Inouropinion,thefinancialstatementshavebeenproperlydrawnupinaccordancewithFinancialReportingStandardsandtheCompaniesAct1965inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasof30April2009andoftheirfinancialperformanceandcashflowforthefinancialyearthenended.

Report on Other Legal and Regulatory Requirements

InaccordancewiththerequirementoftheCompaniesAct1965inMalaysia,wealsoreportthefollowing:-

a) Inouropinion,theaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyanditssubsidiarycompaniesofwhichwehaveactedasauditorshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

b) Wehaveconsideredthefinancialstatementsandtheauditors’reportsofallthesubsidiarycompaniesofwhichwehavenotactedasauditors,asdisclosedinNote14totheFinancialStatements.

c) WearesatisfiedthatthefinancialstatementsofthesubsidiarycompaniesthathavebeenconsolidatedwiththeCompany’sfinancialstatementsareinformandcontentappropriateandproperforthepurposesofthepreparationofthefinancialstatementsoftheGroupandwehavereceivedsatisfactoryinformationandexplanationsrequiredbyusforthosepurposes.

d) The auditors’ reports on the financial statements of the subsidiary companies did not contain anyqualificationoranyadversecommentmadeunderSection174(3)oftheAct.

InDepenDent auDItorS’ reportThe Members of Nextnation Communication Berhad (IncorporatedinMalaysia)

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Other Matters

ThisreportismadesolelytothemembersoftheCompany,asabody,inaccordancewithSeciton174oftheCompaniesAct1965inMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

SJ GRANT THORTON DATO’ N. K. JASANI (NO.AF:0737) CHARTEREDACCOUNTANT CHARTEREDACCOUNTANTS (NO:708/03/10(J/PH))


InDepenDent auDItorS’ reportThe Members of Nextnation Communication Berhad (IncorporatedinMalaysia)

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Group Company

Note 2009rm

2008rm

2009rm

2008rm

ShareCapital � 41,580,000 41,580,000 41,580,000 41,580,000

Reserves 6 1,065,574 695,376 5,558,840 5,558,840

Retainedprofits/(Accumulatedlosses) 19,358,580 26,069,204 (1,240,273) (765,742)

Totalshareholders’equity 62,004,154 68,344,580 45,898,567 46,373,098

MINORITYINTERESTS 2,457,475 2,944,674 - -

TOTALEQUITY 64,461,629 71,289,254 45,898,567 46,373,098

Non-Current Liabilities

Financeleaseliabilities � 820,433 955,352 - -

Termsloans 8 8,534,224 4,994,624 - -

Totalnon-currentliabilities 9,354,657 5,949,976 - -

73,816,286 77,239,230 45,898,567 46,373,098

Non-Current Assets

Property,plantandequipment � 20,743,879 14,791,486 - -

Developmentexpenditure �0 10,410,470 5,913,508 - -

Intangibleassets �� 2,292,325 2,945,388 - -

Goodwillonconsolidation �� 1,302,549 1,302,549 - -

Investmentinassociatecompanies �� 225,240 225,240 - -

Investmentinsubsidiarycompanies 14 - - 9,500,000 9,500,000

Fixeddepositswithalicensedbank 15 538,503 598,000 - -

Amountduefromassociatecompany 16 1,050,024 2,660,031 - -

Totalnon-currentassets 36,562,990 28,436,202 9,500,000 9,500,000

Current Assets

Tradereceivables �� 22,314,423 25.172,226 - -Otherreceivables,depositsandprepayments �� 14,444,229 18,054,531 13,875 86,510

Amountduefromsubsidiarycompanies 19 - - 36,373,559 36,797,504

Taxrecoverable 1,091,195 487,511 14,492 9,452

Cashandcashequivalents 20 13,963,804 15,562,865 96,812 84,535

Totalcurrentassetss 51,813,651 59,277,133 36,498,738 36,978,001

balanCe SheetAs at 30 April 2009

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Group Company

Note 2009rm

2008rm

2009rm

2008rm

Current Liabilities

Tradepayables �� ,��,0�� 3,170,744 - -

Otherpayablesandaccruals �� 3,148,675 2,871,476 98,028 104,902

Amountduetosubsidiarycompany �� - - 2,143 �

Amountduetoassociatecompany �� 240,760 231,814 - -

Amountduetodirectors �� 2,926,832 4,002 - -

Financeleaseliabilities � 523,649 355,634 - -

Termloans � 2,133,850 2,871,572 - -

Taxpayables 1,553 1,292 - -

Bankoverdraft �0 - 967,571 - -

Totalcurrentliabilities 14,560,355 10,474,105 100,171 104,903

NETCURRENTASSETS 37,253,296 48,803,028 36,398,567 36,873,098

73,816,286 77,239,230 45,898,567 46,373,098

Theaccompanyingnotesformanintegralpartofthefinancialstatements

balanCe SheetAs at 30 April 2009

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InCome StatementSfor the Financial Year Ended 30 April 2009

Group Company

Note 2009rm

2008rm

2009rm

2008rm

Revenue �� 54,937,777 65,145,681 - -

Costofsales �� (40,749,318) 44,898,181 - -

Grossprofit 14,188,459 20,247,500 - -

Otherincome 239,927 1,766,669 345 42,217

Administrationexpenses (20,766,691) (27,360,098) (474,876) (481,048)

Lossfromoperations (6,338,305) (5,345,929) (474,531) (438,831)

Financecosts �� (840,989) (317,578) - -

Lossbeforetaxation �� (7,179,294) (5,663,507) (474,531) (438,831)

Taxation �� (18,529) (434,154) - 4,110

Netlossforthefinancialyear (7,197,823) (6,097,661) (474,531) (434,721)

Attributableto:-

EquityholdersoftheCompany (6,710,624) (8,632,032)

Minorityinterests (487,199) (2,534,371)

(7,197,823) (6,097,661)

Loss per share attributable to equity holders of the Company (sen):-

Lossperordinaryshare �� (1.61) (2.08)


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StatementS of ChanGeS In equItyfor the Financial Year Ended 30 April 2009

Attributable to equity holders of the Company

Non-distributable Distributable

Sharecapital

RM

Sharepremium

RM

Translationreserve

RM

Retainedprofits

RMTotalRM

Minorityinterests

RM

Totalequity

RM

GroupBalanceat1May2007 26,820,000 14,918,840 (1,801,022) 34,701,236 74,639,054 410,303 75,049,357

Issuedduringthefinancialyear 900,000 4,500,000 - - 5,400,000 - 5,400,000

Capitalisedasbonusissue 13,860,000 (13,860,000) - - - - -

Currencytranslationdifference - - (3,062,442) - (3,062,442) - (3,062,442)

Netlossforthefinancialyear - - - (8,632,032) (8,632,032) 2,534,371 (6,097,661)

Balanceat30April2008 41,580,000 5,558,840 (4,863,464) 26,069,204 68,344,580 2,944,674 71,289,254

Currencytranslationdifference - - ��0,�� - ��0,�� - ��0,��

Netlossforthefinancialyear - - - (6,710,624) (6,710,624) (487,199) (7,197,823)

Balanceat30April2009 41,580,000 5,558,840 (4,493,266) 19,358,580 62,004,154 2,457,475 64,461,629

Sharecapital

RM

Sharepremium

RM

AccumulatedlossesRM

TotalRM

Company

Balanceat1May2007 26,820,000 14,918,840 (331,021) 41,407,819

Issuedduringthefinancialyear 900,000 4,500,000 - 5,400,000

Capitalisedasbonusissue 13,860,000 (13,860,000) - -

Netlossforthefinancialyear - - (434,721) (434,721)

Balanceat30April2008 41,580,000 5,558,840 (765,742) 46,373,098

Netlossforthefinancialyear - - (474,531) (474,531)

Balanceat30April2009 41,580,000 5,558,840 (1,240,273) 45,898,567


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CaSh flow StatementSfor the Financial Year Ended 30 April 2009

Group Company2009rm

2008rm

2009rm

2008rm

Cash Flow from Operating Activities

Lossbeforetaxation (7,179,294) (5,663,507) (474,531) (438,831)

Adjustments for:-

Amortisationofdevelopmentexpenditure 814,699 1,818,559 - -

Amortisationofintangibleassets 871,310 625,163 - -

Depreciation 3,082,897 1,513,480 - -

Lossondisposalofsubsidiarycompany - 312,944 - -

Lossondisposalofproperty,plantandequipment - 29,424 - -

Interestexpense 840,989 317,578 - -

Interestincome (108,815) (184,856) (345) (42,217)

Allowancefordoubtfuldebts 845,132 - - -

Allowancefordoubtfuldebtsnolongerrequired - (1,389,912) - -

Operatinglossbeforeworkingcapitalchanges (833,082) (2,621,127) (474,876) (481,048)

Changesinworkingcapitals:-

Receivables 5,602,467 19,830,214 72,635 12,715

Payables 2,691,491 (9,980,875) (6,874) 28,844

Directors 2,922,830 (92,271) - -

Subsidiarycompanies - - 426,087 (5,790,014)

Associatecompany 1,618,953 (532,048) - -

Netcashgeneratedfrom/(usedin)operations 12,002,659 6,603,893 16,972 (6,229,503)

Taxpaid (674,327) (1,099,084) (5,040) (2,509)

Taxrefund 52,375 - - -

Interestpaid (840,989) (317,578) - -

Interestreceived 108,815 184,856 345 42,217

Netcashgeneratedfrom/(usedin)operatingactivities 10,648,533 5,372,087 12,277 (6,189,795)

CASH FLOWS FROM INVESTING ACTIVITIES

Investmentinsubsidiarycompany - - - (�)

Developmentexpenditurepaid (5,311,661) (2,617,783) - -

Purchaseofproperty,plantandequipment(Note9) (8,327,467) (10,507,519) - -

Purchaseofintangibleassets - (2,579,625) - -

Proceedfromdisposalofproperty,plantandequipment - 199,938 - -

Placementoffixeddeposit - (80,000) - -

Withdrawaloffixeddeposits 80,000 32,000 - -

Netcashusedininvestingactivities (13,559,128) (15,552,989) - (2)

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CaSh flow StatementSfor the Financial Year Ended 30 April 2009

Group Company2009rm

2008rm

2009rm

2008rm

CASH FLOWS FROM OPERATING ACTIVITIES

Proceedsfromissuanceofshares - 5,400,000 - 5,400,000

Repaymentoffinancepayables (519,844) (460,948) - -

Drawndownoftermloans 5,550,200 7,146,182 - -

Repaymentoftermloans (2,906,386) (458,760) - -

Netcashgeneratedfromfinancingactivities 2,123,970 11,626,474 - 5,400,000

CASH AND CASH EQUIVALENTS

Netchanges (786,625) 1,445,572 12,277 (789,797)

Atbeginningofthefinancialyear 14,595,294 12,604,512 84,535 874,332

Translationdifference 155,135 545,210 - -

Atendofthefinancialyear(Note20) 13,963,804 14,595,294 96,812 84,535


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noteS to the fInanCIal StatementS30 April 2009

1. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedinaccordancewiththeprovisionsoftheCompaniesAct,1965andFinancialReportingStandards(“FRSs”)issuedbyMalaysianAccountingStandardsBoard(“MASB”).

2. FINANCIAL RISK MANAGEMENT POLICIES

TheGroup’s financial riskmanagementpolicy seeks toensure thatadequate financial resourcesareavailableforthedevelopmentoftheGroupbusinesswhilstmanagingitsrisk.TheGroupoperateswithinclearlydefinedguidelinesthatareapprovedbytheBoardandtheGroup’sguidelinesarenottoengageinspeculativetransactions.

Themainareasof financialrisks facedbytheGroupandthepolicyinrespectof themajorareasoftreasuryactivityaresetoutasfollows:-

2.1 Foreign currency risk

Certain subsidiary companies are exposed to foreign currency risk as a result of its normaloperating activities, both external and intra-Group where the currency denominated in acurrencyotherthantherespectivefunctionalcurrenciesoftheGroupactivities.TheGroup’sguidelinesaretominimizetheexposureofoverseasoperatingactivitiestotransactionriskbymatchinglocalcurrencyincomeagainstlocalcurrencycosts.

2.2 Interest rate risk

TheGroup’shasexposuretointerestratesriskasitisrequiredtopayinteresttofinancepayablesandtermloans.

2.3 Credit risk

Managementhasacreditpolicyinplaceandtheexposuretocreditriskismonitoredonanongoingbasis.

The credit risk is controlled by the application of credit approvals, limits and monitoringprocedures.Aninternalcreditreviewisconductedifthecreditriskismaterial.TheGroupdoesnotrequiredcollateralinrespectoffinancialassets.

2.4 Liquidity and cash flow risks

ThecashflowsoftheGroupisbasicallysupportedbytheshareholders’equity.

3. SIGNIFICANT ACCOUNTING POLICIES

3.1 Accounting convention

The financial statements of the Group and of the Company have been prepared under thehistoricalcostconvention,unlessotherwiseindicatedinthesummaryofsignificantaccountingpolicies.

The financial statements are presented in Ringgit Malaysia (“RM”) which is the Company’sfunctionalcurrency.

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3. SIGNIFICANT ACCOUNTING POLICIES (cont’d)

3.2 Adoption of new and revised Financial Reporting Standards (“FRSs”)

(a) TheamendmentstopublishedstandardsandICInterpretationstoexistingstandardseffectivefortheGroupandtheCompanyforthefinancialperiodbeginningonorafter1May2008areasfollows:-

1) Amendment to FRS 121 - The Effects of Changes in Foreign Exchange Rates – Net InvestmentinaForeignOperation

2) ICInterpretation1 - Changes in Existing Decommissioning, Restoration andSimilarLiabilities

3) ICInterpretation2 - Members’ Shares in Co-operative Entities and SimilarInstruments

4) ICInterpretation5 - RightstoInterestsarisingfromDecommissioning,RestorationandEnvironmentalRehabilitationFunds

5) ICInterpretation6 - Liabilities arising from Participating in a Specific Market– Waste Electrical and Electronic Equipment

6) ICInterpretation7 - Applying the Restatement Approach under FRS 1292004FinancialReportinginHyperinflationaryEconomies

7) ICInterpretation8 - ScopeofFRS2

8) FRS107 - CashflowStatements

9) FRS111 - ConstructionContracts

10) FRS112 - IncomeTaxes

11) FRS118 - Revenue

12) FRS120 - Accounting for Government Grants and Disclosure ofGovernmentAssistance

13) FRS134 - InterimFinancialReporting

14) FRS137 - Provisions,ContingentLiabilitiesandContingentAssets

(b) Thefollowingarethestandards,amendmentstoFRSsandICInterpretationswhicharenotyeteffectiveandhavenotbeenearlyadoptedbytheGroupandtheCompany:-

1) FRS139 - FinancialInstruments:RecognitionandMeasurement

FRS139willbeeffectiveforaccountingperiodbeginningonorafter1January2010.

Thisnewstandardestablishedprinciplesforrecognisingandmeasuringfinancialassets,financial liabilities and some contracts to buy and sell non financial items. Hedgeaccountingispermittedonlyunderstrictcircumstances.

TheGroupandtheCompanyisexemptedfromdisclosingthepossibleimpact,ifany,tothefinancialstatementsuponinitialapplicationofFRS139.

2) FRS4 - InsuranceContracts

3) FRS7 - FinancialInstruments:Disclosures

4) FRS8 - OperatingSegments

5) FRS123 - BorrowingCosts

(cont’d)

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3.2 Adoption of new and revised Financial Reporting Standards (“FRSs”) (cont’d)

(b) Thefollowingarethestandards,amendmentstoFRSsandICInterpretationswhicharenotyeteffectiveandhavenotbeenearlyadoptedbytheGroupandtheCompany(cont’d):-

6) AmendmentstoFRS1 - Cost of an Investment in a Subsidiary, Jointly Controlled

FirsttimeAdoptionof EntityorAssociate

FinancialReporting

StandardsandFRS127

Consolidatedand

SeparateFinancial

Statements

7) AmendmentstoFRS2

Share-basedPayment - VestingConditionsandCancellations

8) ICInterpretation9 - ReassessmentofEmbeddedDerivatives

9) ICInterpretation10 - InterimFinancialReportingandImpairment

10) IC Interpretation 11 - FRS 2 – Group and Treasury Share Transactions

11) ICInterpretation13 - CustomerLoyaltyProgrammes

12) IC Interpretation 14 - FRS 119 – The Limit on a Defined Benefit Asset, Minimum FundingRequirementsandtheirInteraction

The above standards, amendments to FRSs and IC Interpretations shall be effective foraccounting period beginning on or after 1 January 2010 except for FRS 8 OperatingSegments,whichshallapplytoaccountingperiodbeginningonorafter1July2009.

Theinitialapplicationoftheabovestandards,amendmentstoFRSsandICInterpretationsarenotexpectedtohaveanymaterialimpactonthefinancialstatementsoftheGroupandoftheCompany.

(c) TheeffectsofchangesinaccountingpoliciesarisingfromadoptionofrevisedFRSsareasfollows:-

Initialapplicationof theaboveAmendmentsandFRS107,111,118,120,134and137didnot result insignificantchanges to theaccountingpoliciesof the Groupandof theCompany.

3.3 Significant Accounting Estimates and Judgements

Estimates,assumptionsconcerningthefutureandjudgementsaremadeinthepreparationofthe financial statements. Theyaffect theapplicationof theGroup’s accountingpolicies andreportedamountsofassets,liabilities,incomeandexpenses,anddisclosuresmade.Estimatesandunderlyingassumptionsareassessedonanon-goingbasisandarebasedonexperienceandrelevantfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.Actualresultmaydifferfromtheseestimates.

Keysourcesofestimationuncertainty

Thekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthebalancesheetdate,thathavesignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:-

(cont’d)

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3.3 Significant Accounting Estimates and Judgements (cont’d) Keysourcesofestimationuncertainty(cont’d)

Impairment of goodwill

TheGroupdetermineswhethergoodwillisimpairedatleastonceannually.Thisrequirestheestimationof thevalue inuseof thecash-generatingunits towhichgoodwill areallocated.EstimatingthevalueinuserequirestheGrouptomakeanestimateoftheexpectedfuturecashflows from the cash-generating unit and also to choose a suitable discount rate in order tocalculatethepresentvalueofthosecashflows.

Deferred tax assets

Deferred taxassetsare recognised forallunabsorbedbusiness lossesandrecognisedcapitalallowancestotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthelossesandcapitalallowancescanbeutilised.Significantmanagementjudgementisrequiredtodeterminetheamountofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.

Income taxes

TheGroupisexposedtoincometaxesinnumerousjurisdictions.SignificantjudgementisinvolvedindeterminingtheGroup-wideprovisionforincometaxes.Therearecertaintransactionsandcomputationsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.TheGrouprecognisedtaxliabilitiesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecognised,suchdifferencewillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.

Depreciation of property, plant and equipment

Property, plant and equipment are depreciated in a straight-line basis over their useful life.Managementestimatedtheusefullifeoftheseassetstobewithin5to50financialyears.Changesin theexpected levelofusageand technologicaldevelopmentscould impact theeconomicusefullifeandtheresidualvaluesoftheseassets,thereforefuturedepreciationchargescouldberevised.

Managementestimatestheusefullivesoftelecommunicationequipmenttobe10years.Thesearecommonlifeexpectedappliedinthetelecommunicationindustry.Inaddition,theestimationoftheusefullivesoftelecommunicationequipmentisbasedoninternaltechnicalevaluationandexperiencewithsimilarassets.

Amortisation of development expenditure

Developmentexpenditureisamortisedbyreferencetothenumberofunitssaleoftherelatedproductover the totalestimatedunit sale foraperiodof10 financialyears.Changes in thetechnological development and market demand could impact economical useful life of theassets,thereforefutureamortisationchargescouldberevised.

Impairment of investment in subsidiaries and recoverability of amount owing to subsidiaries

TheCompany reviews its investment in subsidiaries for impairment annually in accordancewith itsaccountingpolicy.More regular reviewsareperformed ifevents indicate that this isnecessary.Costsofinvestmentsinsubsidiarieswhichhaveceasedoperationswereimpaireduptonetassetsofthesubsidiaries.Theimpairmentmadeoninvestmentinsubsidiariesentailsanallowancefordoubtfuldebtstobemadetotheamountowingbythesesubsidiaries.

(cont’d)

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3.3 Significant Accounting Estimates and Judgements (cont’d) Keysourcesofestimationuncertainty(cont’d)

Significant judgement is required in theestimationof thepresentvalueof futurecash flowsgenerated by the subsidiaries, which involve uncertainties and are significantly affected byassumptionsusedandjudgementmaderegardingestimatesoffuturecashflowsanddiscountrates. Changes in assumption could significantly affect the results of the Company’s test forimpairmentofinvestmentinsubsidiaries.

3.4 Basis of consolidation

TheGroupfinancialstatementsconsolidatetheauditedfinancialstatementsoftheCompanyandallofitssubsidiarycompanies,whichhavebeenpreparedinaccordancewiththeGroup’saccountingpolicies.

Allinter-companytransactions,balancesandunrealisedgainsontransactionsbetweengroupcompaniesareeliminated;unrealisedlossesarealsoeliminatedonconsolidationunlesscostcannotberecovered.

ThefinancialstatementsoftheCompanyanditssubsidiarycompaniesarealldrawnuptothesamereportingdate.

Acquisition of subsidiary companies is accounted for using the purchase method. The costofanacquisition ismeasuredas the fairvalueof theassetsgiven,equity instruments issuedandliabilitiesincurredorassumedatthedateofexchange,pluscostsdirectlyattributabletotheacquisition. Identifiableassets acquiredand liabilities andcontingent liabilities assumedin a business combination aremeasured initially at their fair values at the acquisitiondate,irrespectiveoftheextentofanyminorityinterest.

Anyexcessofthecostofthebusinesscombinationoverthegroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesrepresentsgoodwill.ThegoodwillisaccountedforinaccordancewiththeaccountingpolicyforgoodwillstatedinNote3.9.

Anyexcessofthegroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesoverthecostofbusinesscombinationisrecognisedasincomeonthedateofacquisition.

Minorityinterestrepresentstheportionofprofitorlossandnetassetsinsubsidiarycompaniesnotheldby theGroup.Theyarepresented in theconsolidatedbalancesheetwithinequity,separatelyfromtheparentshareholders’equity,andareseparatelydisclosedintheconsolidatedincomestatement.

SubsidiarycompaniesareconsolidatedusingthepurchasemethodofaccountingfromthedateonwhichcontrolistransferredtotheGroupandarenolongerconsolidatedfromthedatethatcontrolceases.

Thegainor lossondisposalofasubsidiarycompanyis thedifferencebetweennetdisposalproceeds and the Group’s share of its net assets together with any unimpaired balance ofgoodwillonacquisitionandexchangedifferences.

(cont’d)

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3.5 Subsidiary companies

Asubsidiarycompany isacompany inwhich theGroupor theCompanyhas thepower toexercisecontroloverthefinancialandoperatingpoliciessoastoobtainbenefitstherefrom.

Investmentinsubsidiarycompanies,whichiseliminatedonconsolidation,isstatedatcostlessanyimpairmentlossesintheCompany’sbalancesheet.Whereanindicationofimpairmentexists,thecarryingamountofthesubsidiarycompaniesisassessedandwrittendownimmediatelytotheirrecoverableamount.

Ondisposalofsuchinvestments,thedifferencesbetweennetdisposalandtheircarryingamountischargedorcreditedtotheincomestatements.

3.6 Associate company

AnassociatecompanyisacompanyinwhichtheGrouportheCompanyhasalongtermequityinterestofbetween20to50percentandisinthepositiontoexercisesignificantinfluenceoveritsfinancialandoperatingpoliciesthroughmanagementparticipationbutnottoexertcontroloverthosepolicies.

InvestmentinassociatecompaniesareaccountedforintheconsolidatedfinancialstatementsusingequityaccountingwhichinvolvesrecognisingintheincomestatementtheGroup’sshareoftheresultsofassociatecompaniesbasedonauditedormanagementfinancialstatementsoftheassociatecompanies.TheGroup’s investments inassociatecompaniesarecarriedin thebalancesheetatanamountthatreflectsitsshareofthenetassetsoftheassociatecompanies.Equityaccountingisdiscontinuedwhenthecarryingamountoftheinvestmentinanassociatecompanyreacheszero,unlesstheGrouphasincurredobligationsorguaranteedobligationsinrespectoftheassociatecompany.

InvestmentinassociatecompaniesisstatedatcostintheCompany’sbalancesheet.Whereanindicationofimpairmentexists,thecarryingamountoftheassociatecompaniesisassessedandwrittendownimmediatelytotheirrecoverableamount.

3.7 Property, plant and equipment and depreciation

Property, plant and equipment are initially stated at cost. Cost includes expenditure that isdirectlyattributabletotheacquisitionoftheasset.

Afterinitialrecognition,property,plantandequipmentarestatedatcostlessanyaccumulateddepreciationandanyaccumulatedimpairmentlosses.

Depreciationisprovidedonthestraightlinemethodinordertowriteoffthecostofeachassetoveritsestimatedusefullife.

TheprincipalannualdepreciationratesusedbytheGroupareasfollows:-

Freeholdbuildings 2% Telecommunicationequipment 10% Motorvehicles 20% Furnitureandfittings 20% Officeequipment 20% Renovation 20%

Freeholdlandwithaninfinitelifeisnotdepreciated.

Restorationcostrelatingtoanitemofproperty,plantandequipmentiscapitalisedonlyifsuchexpenditure is expected to increase the futurebenefits from theexistingproperty,plant andequipmentbeyonditspreviouslyassessedstandardofperformance.

(cont’d)

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3.7 Property, plant and equipment and depreciation (cont’d) Previously, telecommunication equipment is depreciated for 20% per annum. During the

financial year, the Group revised the depreciation policy for telecommunication equipmenttodepreciateon the straight linebasis for10%perannum.The revisionwasaccounted forprospectivelyasachangeinaccountingestimatesandasaresult,thedepreciationchargefortheGrouphasdecreasedbyRM1,063,496forthecurrentfinancialyear.

Property,plantandequipmentarewrittendowntorecoverableamountif,intheopinionoftheDirectors,islessthantheircarryingvalue.Recoverableamountisthenetsellingpriceoftheproperty,plantandequipmenti.e.theamountobtainablefromthesaleofanassetinanarm’slengthtransactionbetweenknowledgeable,willingparties,lessthecostsofdisposal.

Theresidualvalues,usefullivesanddepreciationmethodarereviewedateachfinancialyearendtoensurethattheamount,methodandperiodofdepreciationareconsistentwithpreviousestimatesandtheexpectedpatternofconsumptionofthefutureeconomicbenefitsembodiedintheitemsofproperty,plantandequipment.Ifexpectationsdifferfrompreviousestimates,thechangesareaccountedforasachangeinanaccountingestimate.

Thecarryingamountofanitemofproperty,plantandequipmentisderecognisedondisposalorwhenno futureeconomicbenefits areexpected from itsuseordisposal. Thedifferencebetween thenet disposal proceeds, if any, and the carrying amount is included inprofit orlossandtherevaluationsurplusrelatedtothoseassets,ifany,istransferreddirectlytoretainedearnings.

3.8 Capital work-in-progress

Capitalwork-in-progressconsistsofbuildingsandmachineryunderconstruction/installationforintendeduseasproductionfacilities.Theamountisstatedatcostandincludescapitalisationofinterestincurredonborrowingsrelatedtoproperty,plantandequipmentunderconstructionorinstallationuntiltheproperty,plantandequipmentarereadyfortheirintendeduse.Capitalwork-in-progressarenotdepreciatedastheseassetsarenotavailableforintendeduse.

3.9 Goodwill

GoodwillrepresentstheexcessofthecostofacquisitionovertheGroup’sinterestinthefairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesofasubsidiarycompanyandassociatecompanyatthedateofacquisition.

Goodwill arising on the acquisition of subsidiary companies is presented separately in thebalancesheetwhilegoodwillarisingontheacquisitionofassociatecompanyisincludedwithinthecarryingamountofinvestmentinassociatecompany.

Followinginitialrecognition,goodwill ismeasuredatcost lessanyaccumulatedimpairmentlosses.Goodwillisreviewedforimpairment,annuallyormorefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingvaluesmaybeimpaired.

For thepurposeof impairmenttesting,goodwillacquiredinabusinesscombinationis, fromtheacquisitiondate,allocatedtoeachoftheGroup’scash-generatingunits,orgroupsofcash-generatingunits,thatareexpectedtobenefitfromthesynergiesofthecombination,irrespectiveofwhetherotherassetsorliabilitiesoftheGroupareassignedtothoseunitsorgroupofunits.Eachunitorgroupofunitstowhichthegoodwillissoallocated:-

(cont’d)

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3.9 Goodwill (cont’d)

• Represents the lowest level within the Group at which the goodwill is monitored for internal managementpurposes;and

• Is not larger than a segment based on either the Group’s primary or the Group’s secondary reportingformat.

Acash-generatingunit(orgroupofcash-generatingunits)towhichgoodwillhasbeenallocatedaretestedforimpairmentannuallyand,wheneverthereisanindicationthattheunitmaybeimpaired,bycomparingthecarryingamountoftheunit,includinggoodwill,withtherecoverableamountof theunit.Where the recoverableamountof thecash-generatingunit (orgroupofcash-generatingunits)islessthanthecarryingamount,animpairmentlossisrecognised.

Animpairmentlossrecognisedforgoodwillshouldnotbereversedinsubsequentperiod.Gainsandlossesonthedisposalofanentityincludethecarryingamountofgoodwillrelatingtotheentitysold.

Wheregoodwillformspartofacash-generatingunit(orgroupofcash-generatingunits)andpartoftheoperationswithinthatunitisdisposedoff,thegoodwillassociatedwiththeoperationsdisposedoffisincludedinthecarryingamountoftheoperationswhendeterminingthegainorlossondisposaloftheoperations.Goodwilldisposedoffinthesecircumstancesaremeasuredbasedontherelativevaluesoftheoperationsdisposedoffandportionofthecash-generatingunitretained.

3.10 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The costof intangible assets acquired in abusiness combination is their fair values as at thedateofacquisition.Followinginitialrecognition,intangibleassetsarecarriedatcostlessaccumulatedamortisation and any accumulated impairment losses. The useful life of intangible assets isassessedtobeeitherfiniteorindefinite.Intangibleassetswithfinitelifeareamortisedonstraight-linebasisovertheestimatedeconomicusefullifeandassessedforimpairmentwheneverthereis an indication that the intangibleassetmaybe impaired.Theamortisationperiodand theamortisation method for an intangible asset with a finite useful life are reviewed at least ateachfinancialyearend.Theamortisationexpenseonintangibleassetswithfiniteusefullifeisrecognisedintheincomestatementintheexpensecategoryconsistentwiththefunctionoftheintangibleasset.

Intangibleassetswithindefiniteusefullifearetestedforimpairmentannuallyormorefrequentlyiftheeventsorchangesincircumstancesindicatethatthecarryingvaluemaybeimpairedeitherindividuallyor at cash-generatingunit level. Such intangibles arenot amortised. Theusefullifeofanintangibleassetwithanindefinitelifeisreviewedannuallytodeterminewhethertheusefullifeassessmentcontinuestobesupportable.

The patents, trade marks and licenses are stated at cost less accumulated amortisation.Amortisationiscalculatedusingthestraight linemethodtoallocate thecostofpatent, trademarkandlicensesovertheirestimatedusefullives.

Gainorlossesarisingfromderecognitionofanintangibleassetsismeasuredasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetandarerecognisedintheincomestatementwhentheassetisderecognised.

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3.11 Development expenditure

Expenditure on development activities of internally developed products is recognised as anintangibleassetwhenitrelatestotheproductionofneworsubstantivelyimprovedproductsandprocessesandwhentheGroupcandemonstratethatitistechnicallyfeasibletodeveloptheproductorprocesses,adequateresourcesareavailabletocompletethedevelopmentandthatthereisanintentiontocompleteandselltheproductorprocessestogeneratefutureeconomicbenefits.

DevelopmentexpenditureoftheGroupcomprisesofdirectcostandoverheadcostsincurredinthedevelopmentofsoftwareplatformandreal-timemultiplayermobilegame.

Previously,thedevelopmentcostisamortisedforaperiodof5years.Duringthefinancialyear,theGrouphasrevisedtheamortisationpolicyfordevelopmentexpendituretoamortiseonthestraightlinebasisovertheperiodof10years.Therevisionwasaccountedforprospectivelyasachangeinaccountingestimatesandasaresult, theamortisationchargefor theGrouphasdecreasedbyRM1,870,132forthecurrentfinancialyear.

The carrying amount of development expenditure are reviewed annually and written downimmediatelytotheirrecoverableamountwhereanindicationofimpairmentexists,inaccordancewithFRS136.

3.12 Assets acquired under lease agreements

Accounting by lessees

Finance leases

Lease of property, plant and equipment acquired under hire purchase arrangements whichtransfersubstantiallyalltherisksandrewardsofownershiptotheGrouparecapitalised.ThedepreciationpolicyontheseassetsissimilartothatoftheGroup’sproperty,plantandequipmentdepreciationpolicy.

Outstandingobligationsdueunderhirepurchasearrangementsafterdeductingfinanceexpensesare included as liabilities in the financial statements. Finance charges on hire purchase areallocatedtoincomestatementovertheperiodofrespectiveagreements.

3.13 Interest-bearing borrowings

Interest-bearingborrowingsarerecordedattheamountofproceedsreceived,netoftransactioncostsincurred.

Borrowing costs incurred to finance the construction of property, plant and equipment iscapitalisedaspartofthecostofthoseassetsduringtheperiodoftimethatisrequiredtocompleteandpreparetheassetsforitsintendeduse.

Allotherborrowingcostsarerecognisedasanexpenseintheincomestatementintheperiodinwhichtheyareincurred.

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3.14 Income tax

Incometaxontheprofitorlossforthefinancialyearcomprisescurrentanddeferredtax.Currenttaxexpensesistheexpectedamountofincometaxespayableinrespectofthetaxableprofitforthefinancialyearandismeasuredusingthetaxratesthathavebeenenactedatthebalancesheetdate.

Deferred tax liabilities and assets are provided for under the liability method at the currenttaxrateinrespectofalltemporarydifferencesatthebalancesheetdatebetweenthecarryingamountofanassetorliabilityinthebalancesheetanditstaxbaseincludingunusedtaxlossesandcapitalallowances.

Deferredtaxassetsarerecognisedonlytotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilised.Thecarryingamountofadeferredtaxassetisreviewedateachbalancesheetdate.Ifitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowthebenefitofpartorthatentiredeferredtaxassettobeutilised,thecarryingamountofthedeferredtaxassetwillbereducedaccordingly.Whenitbecomesprobablethatsufficienttaxableprofitwillbeavailable,suchreductionswillbereversedtotheextentofthetaxableprofit.

Deferredtaxisrecognisedintheincomestatement,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity,inwhichcasethedeferredtaxisalsochargedorcrediteddirectlyinequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwill.

Deferredtaxismeasuredatthetaxratesthatareexpectedtoapplyintheperiodwhentheassetisrealisedortheliabilityissettled,basedontaxratesthathavebeenenactedorsubstantivelyenactedatthebalancesheetdate.

3.15 Provisions

Provisionsarerecognisedwhenthereisapresentobligationlegalorconstructive,asaresultofapastevent,whenitisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.Provisionsarenotrecognisedforfutureoperatinglosses.

AnyreimbursementthattheGroupcanbevirtuallycertaintocollectfromathirdpartywithrespecttotheobligationisrecognisedasaseparateasset.However,thisassetmaynotexceedtheamountoftherelatedprovision.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current bestestimate.Wheretheeffectofthetimevalueofmoneyismaterial,theamountofprovisionisthepresentvalueoftheexpenditureexpectedtoberequiredtosettletheobligation.

3.16 Cash and cash equivalents

Cashandcashequivalentscomprisecashonhand,bankbalances,shorttermdemanddepositsand highly liquid investments which are readily convertible to known amount of cash andwhicharesubjecttoaninsignificantriskofchangesinvalue.

Forthepurposeofthebalancesheet,cashandcashequivalentsrestrictedtobeusedtosettlealiabilityof12monthsormoreafterthebalancesheetdateareclassifiedasnon-currentasset.

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3.17 Employee benefits

(i) Short term benefits

Wages, salaries,bonusesandsocial securitycontributionsare recognisedasanexpensein the financialyear inwhich theassociatedservicesare renderedbyemployeesof theGroup. Short term accumulating compensated absences such as paid annual leave arerecognised when services are rendered by employees that increase their entitlement tofuture compensated absences, and short term non-accumulating compensated absencessuchassickleavearerecognisedwhentheabsencesoccur.

(ii) Defined contribution plan TheCompanyanditssubsidiarycompaniesmakecontributionstothecountries’statutory

pensionschemesasprovidedbythelawsof thecountries inwhichithasoperations. Inparticular, the Malaysian incorporated companies contribute to the Employee ProvidentFund(“EPF”),adefinedcontributionplanregulatedandmanagedbytheGovernmentofMalaysia,whichappliestothemajorityoftheemployees.

Thecontributionsarerecognisedasaliabilityafterdeductinganycontributionalreadypaidandasanexpenseintheperiodinwhichtheemployeesrendertheirservices.

3.18 Foreign currency transactions and balances

ThefinancialstatementsarepresentedinMalaysiaRinggit,whichisalsothefunctionalcurrencyoftheholdingcompany.

TransactionsinforeigncurrenciesarerecordedinRinggitMalaysiaatratesofexchangerulingatthedateofthetransactions.Foreigncurrencymonetaryassetsandliabilitiesaretranslatedatexchangeratesrulingatbalancesheetdate.

Theassetsandliabilitiesoftheforeignentities,includinggoodwillandfairvalueadjustmentsarisingontheacquisitions,aretranslatedtoRinggitMalaysiaattheclosingratesatthebalancesheetdate.TheoperatingresultsaretranslatedtoRinggitMalaysiaattheexchangeratesattheaverageratesduringthefinancialyear.

Gainsand losses resulting from settlementof such transactionsandconversionofmonetaryassetsandliabilities,whetherrealisedorunrealised,areincludedintheincomestatementastheyarise.

Financial statementsof foreignconsolidatedsubsidiarycompaniesare translatedatyear-endexchangerateswithrespecttotheassetsandliabilities.Allresultingtranslationdifferencesareincludedintheforeignexchangereserveinshareholders’equity.

Goodwillandfairvalueadjustmentsarisingontheacquisitionofaforeignentityonandafter1January2006aretreatedasassetsandliabilitiesoftheforeignentityandtranslatedattheclosingrateatthebalancesheetdate.

On disposal of a foreign entity, the cumulative amount of exchange differences deferred inequityrelatingtothatforeignentityisrecognisedintheincomestatementasacomponentofthegainorlossondisposal.

Allotherforeignexchangedifferencesaretakentotheincomestatementinthefinancialyearinwhichtheyarise.

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3.19 Revenue recognition

(a) Sale of goods or services

Revenuefromsaleofgoodsisrecognisedupondeliveryofproductsandcustomeracceptance,ifany,orperformanceofservices,andaftereliminatingsaleswithintheGroup.

(b) Interest income

Interest incomeisrecognisedontimeproportionbasis, takingintoaccounttheprincipaloutstandingandtheeffectiverateovertheperiodtomaturity,whenitisdeterminedthatsuchincomewillaccruedtotheGroup.

3.20 Receivables Receivablesarecarriedatanticipatedrealisablevalue.Baddebtsarewrittenoffintheperiod

inwhichtheyareidentified.Anallowanceismadefordoubtfuldebtsbasedonareviewofalloutstandingamountsattheperiodend.

3.21 Payables

Payablesarestatedatcostwhichisthefairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived.

3.22 Impairment of assets

Ateachbalancesheetdate,theGroupreviewsthecarryingamountsofitsassetstodeterminewhetherthereisanyindicationofimpairment.Intangibleassetwithindefiniteusefullifesuchasgoodwillistestedforimpairmentannuallyatfinancialyearendormorefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingvaluemaybeimpairedeitherindividuallyoratthecash-generatingunitlevel.

Ifanysuchindicationexists,orwhenannualimpairmenttestingforanasset isrequired, therecoverableamountisestimatedandanimpairmentlossisrecognisedwhenevertherecoverableamount of the asset or a cash-generating unit is less than its carrying amount. Recoverableamountofanassetoracash-generatingunitisthehigherofitsfairvaluelesscoststosellanditsvalueinuse.

Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Impairmentlossesofcontinuingoperationsarerecognisedintheincomestatementinthoseexpensecategoriesconsistentwiththefunctionoftheimpairedasset.

Animpairmentlossisrecognisedasanexpenseintheincomestatementimmediately,unlesstheassetiscarriedatarevaluedamount.Anyimpairmentlossofarevaluedassetistreatedasarevaluationdecreasetotheextentofanyunutilisedpreviouslyrecognisedrevaluationsurplusforthesameasset.

Anassessmentismadeateachbalancesheetdateastowhetherthereisanyindicationthatpreviouslyrecognisedimpairmentlossesforanassetotherthangoodwillmaynolongerexistormayhavedecreased.Ifsuchindicationexists,therecoverableamountisestimated.Apreviouslyrecognisedimpairmentlossisreversedonlyiftherehasbeenachangeintheestimatesusedtodeterminetheassetrecoverableamount.Thatincreasedamountcannotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciation,hadnoimpairmentlossbeenrecognisedfortheassetinpriorfinancialyears.

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3.22 Impairment of assets(cont’d) All reversals of impairment losses are recognised as income immediately in the income

statementunlesstheassetiscarriedatrevaluedamount,inwhichcasethereversalinexcessofimpairmentlosspreviouslyrecognisedthroughtheincomestatementistreatedasrevaluationincrease.Aftersuchareversal,thedepreciationchargeisadjustedinfutureperiodstoallocatetherevisedcarryingamountoftheasset,lessanyresidualvalue,onasystematicbasisoveritsremainingusefullife.

Animpairmentlossrecognisedforgoodwillshallnotbereversedinasubsequentperiod.

3.23 Financial instruments Financialinstrumentscarriedonthebalancesheetincludecashandbankbalances,investments,

receivables,payablesandborrowings.Theparticularrecognitionmethodsadoptedaredisclosedintheindividualaccountingpolicystatementsassociatedwitheachitem.

Financialinstrumentsareclassifiedasliabilitiesorequityinaccordancewiththesubstanceofthecontractualarrangement.Interest,dividends,gainsandlossesrelatingtoafinancialinstrumentclassifiedas liabilityarereportedasexpenseor income.Distributions toholdersof financialinstrumentsclassifiedasequityarechargeddirectlytoequity.FinancialinstrumentsareoffsetwhentheGrouphasalegallyenforceablerighttosetofftherecognisedamountsandintendseithertosettleonanetbasis,ortorealisetheassetandsettletheliabilitysimultaneously.

3.24 Segmental results Segmentrevenuesandexpensesarethosedirectlyattributabletothesegmentsandincludeany

jointrevenueandexpenseswhereareasonablebasisofallocationexists.Segmentassetsincludeallassetsusedbyasegmentandconsistprincipallyofcash,receivables,inventories,intangibleassetsandproperty,plantandequipment,netofallowancesandaccumulateddepreciationandamortisation.Themajorityofthesegmentassetscanbedirectlyattributedtothesegmentsonareasonablebasis.Segmentassetsandliabilitiesdonotincludetaxrecoverableanddeferredincometaxes.

3.25 Intersegment transfers

Segmentrevenues,expensesandresultincludetransfersbetweensegments.ThepriceschargedonintersegmenttransactionsarethesameasthosechargedforsimilargoodstopartiesoutsideoftheGroupatanarm’slengthtransactions.Thesetransfersareeliminatedonconsolidation.

4. PRINCIPAL ACTIVITIES AND GENERAL INFORMATION

TheCompanyisprincipallyaninvestmentholdingcompany.TheprincipalactivitiesofthesubsidiariesaresetoutinNote14totheFinancialStatements.Therehavebeennosignificantchangesinthenatureoftheseactivitiesduringthefinancialyear.

TheCompany isapublic limited liabilitycompany, incorporatedanddomiciled inMalaysia,and islistedontheACEMarket(formerlyknownasMESDAQMarket)ofBursaMalaysiaSecuritiesBerhad.TheregisteredofficeoftheCompanyislocatedatLevel7,MenaraMilenium,JalanDamanlela,PusatBandarDamansara,DamansaraHeights,50490KualaLumpurandtheprincipalplaceofbusinessislocatedatNo.909,BlockF,PhileoDamansaraOne,No.9,Jalan16/11,46350PetalingJaya,SelangorDarulEhsan.

The financial statements were authorised for issue by the Board of Directors in accordance with aresolutionoftheDirectorson27August2009.

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5. SHARE CAPITAL

Group and Company

2009RM

2008RM

Authorised:-

OrdinarysharesofRM0.10each 200,000,000 200,000,000

Issuedandfullypaid:-

OrdinarysharesofRM0.10each

Atbeginningoffinancialyear 41,580,000 26,820,000

Issuedduringthefinancialyear - 14,760,000

Atendoffinancialyear 41,580,000 41,580,000

6. RESERVES

Group Company2009rm

2008rm

2009rm

2008rm

Non-distributable:-

Share premium

Atbeginningoffinancialyear 5,558,840 14,918,840 5,558,840 14,918,840

Arisesfromprivateplacement - 4,500,000 - 4,500,000

Capitalisedasbonusissue - (13,860,000) - (13,860,000)

Atendoffinancialyear 5,558,840 5,558,840 5,558,840 �,��,��0

Non-distributable:-

Translation reserve

Atbeginningoffinancialyear (4,863,464) (1,801,022) - -Foreigncurrencytranslationdifferences 370,198 (3,062,442) - -

Atendoffinancialyear (4,493,266) (4,863,464) - -

1,065,574 695,376 5,558,840 5,558,840

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7. FINANCE LEASE LIABILITIES

Group

2009

RM

2008

RMMinimumleasepayment

-notlaterthan1year 593,337 421,133

-laterthan1yearbutnotlaterthan5years 815,925 1,015,443

-laterthan5years 78,388 24,880

1,487,650 1,461,456

Futurefinancechargesonfinancelease (143,568) (150,470)

Presentvalueoffinanceleaseliabilities 1,344,082 1,310,986

Presentvalueoffinanceleaseliabilities

-notlaterthan1year 523,649 355,634

-laterthan1yearbutnotlaterthan5years 747,150 930,968

-laterthan5years 73,283 24,384

1,344,082 1,310,986

Analysedas:-

Duewithin12months 523,649 355,634

Dueafter12months 820,433 955,352

1,344,082 1,310,986

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8. TERM LOANS - SECURED

Group

2009RM

2008RM

TermloanIrepayableover120equalmonthlyinstallmentofRM14,400commencingfromMarch2007

959,994 1,060,069

TermloanIIrepayableover240equalmonthlyinstallmentofRM11,171commencingfromMarch2008

1,544,358 1,583,864

TermloanIIIrepayableover240equalmonthlyinstallmentofRM11,171commencingfromMarch2008

1,544,358 1,583,864

TermloanIVrepayableover45equalmonthlyinstallmentofRM222,222withthree(3)monthsgraceperiodfromthefirstdrawndown

6,461,301 3,638,399

TermloanVrepayableover240equalmonthlyinstallmentofRM17,880commencingonthefirstdayofthefirstmonthafterfullrelease

158,063 -

10,668,074 7,866,196

Repayableasfollows:-

Current 2,133,850 2,871,572

Non-current 8,534,224 4,994,624

10,668,074 7,866,196

Repaymentterms:-

-notlaterthan1year 2,133,850 2,871,572

-between1to2years 2,645,446 1,170,292

-between2to5years 3,268,748 957,892

-laterthan5years 2,620,030 2,866,440

10,668,074 7,866,196

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8. TERM LOANS - SECURED (cont’d)

TermloansoftheGrouparesecuredby:-

(a) lienonfixeddepositofthesubsidiarycompany;

(b) deedofassignmentinfavorofthebankoncertainlandedpropertiesofthesubsidiarycompany;

(c) chargeoncertainlandedpropertiesofthesubsidiarycompany;

(d) firstpartyopenmoniescharge;and

(e) corporateguaranteefromtheCompany.

Theborrowingsbearinterestatratesrangingfrom5.65%to7.00%(2008:3.85%to7.00%)perannum.Therepaymenttermsoftermloansvaryfrommonthlytoquarterly.

9. PROPERTY, PLANT AND EQUIPMENT

Freehold buildings

RM

Office equipment

RM

Furniture and fittings

RM

Motor vehicles

RMRenovation

RM

Telecommu-nication

equipmentRM

Capital work in progress

RM

Total

2009RM

Total

2008RM

GroupCost

Atbeginningoffinancialyear 5,863,519 8,575,643 456,844 2,174,208 761,469 - - 17,831,683 6,698,477

Additions ��,�� ,�0�,�� ,�� ,0�� ,�� - ��,�0� �,0��,�� ,��,��

Translationdifferences (4,700) (17,573) (21,586) 21,132 16,001 - - (6,726) (158,750)

Disposal - - - - - - - - (251,219)

Reclassification - (11,750,377) - - - ��,��0,�� - - -

Atendoffinancialyear 6,355,693 3,913,876 494,484 2,888,399 825,797 ��,��0,�� 634,802 26,863,428 17,831,683

Accumulated depreciation

Atbeginningoffinancialyear 133,608 1,735,097 176,545 560,893 434,054 - - 3,040,197 1,613,589

Chargeforthefinancialyear 152,018 1,655,607 95,619 604,508 183,466 391,679 - 3,082,897 1,513,480

Translationdifferences (��) (�,��) (�,��) 5,525 3,782 - - (3,545) (65,015)

Disposal - - - - - - - - (��,��)

Reclassification - (��,�0�) - - - ��,�0� - - -

Atendoffinancialyear 285,174 2,513,971 267,591 1,170,926 621,302 1,260,585 - 6,119,549 3,040,197

Net book value

�00� �,0�0,�� ,��,�0� ��,�� ,��,�� 0�,�� 0,��,�� ,�0� �0,��,�� -

�00� �,��,�� ,��0,�� 0,�� ,��,�� ,�� - - - ��,��,��

Depreciationchargeforfinancialyearended2008 ��,�� ,�0� ��,00� ��,�� ,�0� - - - �,��,��0

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9. PROPERTY, PLANT AND EQUIPMENT (cont’d) Duringthefinancialyear,theGroupmadethefollowingcashpaymentstopurchaseproperty,plantand

equipment.

Group

2009RM

2008RM

Purchaseofproperty,plantandequipment 9,038,471 11,543,175

Financebyhirepurchaseandleasearrangements (552,940) (1,035,656)

Financebytermloan (158,063) -Cashpaymentsonpurchaseofproperty,plantandequipment 8,327,467 10,507,519

As at 30 April 2009, the net carrying amount of the Group’s property, plant and equipment underfinanceleaseareasfollows:-

Group

2009RM

2008RM

Motorvehicles 1,524,780 1,613,315

NetbookvalueofmotorvehiclesoftheGroupwhichareheldintrustbytheDirectorsofthesubsidiarycompaniesamountedtoRM286,937(2008:RM451,969).

FreeholdbuildingoftheGroupwithcarryingamountofRM5,783,924(2008:RM5,240,298)arepledgedtoalicensedbankforbankingfacilitiesgrantedtoasubsidiarycompany(Note8).

TitledeedsoffreeholdbuildingswithnetbookvalueamountedtoRM3,767,589(2008:RM3,844,741)asyettobetransferredtotheGroup.

10. DEVELOPMENT EXPENDITURE

Group2009RM

2008RM


Incurredduringthefinancialyear 5,311,661 2,617,783

11,225,169 7,732,067

Less:Amortisationduringthefinancialyear (814,699) (1,818,559)


Included in the development expenditure are Directors’ other emoluments of the Directors of theCompanyanditssubsidiarycompanywhowereinvolvedinthedevelopmentactivitiesamountingtoRM314,271(2008:RM361,580).

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11. INTANGIBLE ASSETS

Group

2009RM

2008RM


Additions - 2,579,625

Exchangetranslationdifferences 218,248 (178,087)

3,163,636 3,570,551Less:Amortisationduringthefinancialyear (871,310) (625,163)


TheintangibleassetsoftheGroupareanexclusiveperpetuallicenseinthecontentmanagementsolutionknownas“AlChemist”andanexclusivelicensetouseEmotionSpytogetherwithanyandallofthetrademarks,copyright,patentsandotherintellectualpropertyrightsusedorsubsistinginorinconnectionwiththeEmotionSpyforaperiodofthreeyears.

12. GOODWILL ON CONSOLIDATION

Group

2009RM

2008RM

Atbeginning/endoffinancialyear 1,302,549 1,302,549

Thegoodwillrepresentstheexcessofthepurchaseconsiderationpaidforthesharesinthesubsidiarycompanies over the Group’s interest in the fair value of the identifiable net assets of the subsidiarycompaniesacquired.Forpurposesofimpairmenttesting,thecarryingamountofgoodwillisallocatedtotheGroup’srespectivecashgeneratingunitswhichrepresentsthelowestlevelwithintheGroupatwhichthegoodwillismonitoredforinternalmanagementpurposes.

Therecoverableamountofthegoodwillisbasedinvalue-in-cashcalculations,usingpre-taxcashflowprojectionsbasedonfinancialbudgetscoveringaperiodof5years.

Thekeyassumptionsusedinvalueinusecalculationsare:-

Revenueannualgrowthrate 10%-30% Expensesannualincrementrate 5%-20% Pre-taxdiscountrate 10%

Theabovekeyassumptionswerebased inpastperformanceand itsexpectationsof future trends intheindustryandexpectedmarketdevelopments.Thediscountrateusedispre-taxandreflecttherisksrelatingtothecashgeneratingunitsandisestimatedbasedonthecurrentmarketassessmentiftime-valueofmoney.Thekeyassumptionsaresensitivetothechangesinpercentagepointinthediscountrateusedandfutureplannedrevenuenotmaterialising.

TheDirectorsdonotexpectanyreasonablepossiblechangesinkeyassumptionstohaveasignificantimpactonthecarryingvalueofgoodwilltoexceeditsrecoverableamount.

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13. INVESTMENT IN ASSOCIATE COMPANIES

Group

2009RM

2008RM

Unquotedshares,atcost 318,953 318,953

Shareofresultsofassociatecompany (93,713) (93,713)

225,240 225,240

Representedby:-

Shareofnetassets 225,240 225,240

GroupDetailsoftheassociatecompaniesareasfollow:-

Country ofName of Company % Effective interest Principal activities incorporation 2009 2008 % %

Held by Godynamic Investments LimitedSiamtouchWireless 49 49 Mobileapplication ThailandLtd. serviceprovider

Held by Qahaar Infracom Pte. Ltd.QahaarTelecoms 20 20 Investment,development SingaporePte.Ltd. tradingandmarketing forhardwareand software

14. INVESTMENT IN SUBSIDIARY COMPANIES

Group

2009RM

2008RM

Unquotedshares,atcost 9,500,000 9,500,000

Detailsofthesubsidiarycompaniesareasfollows:-

% Effective interest Subsidiary Country ofName of Company Company companies Principal activities incorporation 2009 2008 2009 2008 % % % %

Nextnation 100 100 - - Programmingservices, MalaysiaNetwork softwaredevelopmentSdn.Bhd. internetconsultingand provisionofinformation technologyservices

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14. INVESTMENT IN SUBSIDIARY COMPANIES (cont’d)Detailsofthesubsidiarycompaniesareasfollows(cont’d):-


OzuraSdnBhd 100 100 - - Mobilegameengine/solution Malaysia developandprovideraswell asmobilegamedeveloper andpublisher

NextnationTechcity 100 100 - - Propertyinvestment MalaysiaSdn.Bhd.

Held by Nextnation Network Sdn. Bhd.Nextnation - - 100 100 Developmentanddistribution MalaysiaCollectionsSdn.Bhd. ofretailmobileapplication soluitons

UsapeNelson - - 100 100 Contentaggregator MalaysiaWirelessSdn.Bhd.

Godynamic - - 51 51 Investmentholding BritishVirginInvestmentsLimited Island

Nextnation - - 100 100 Provisionofbusiness MalaysiaInteractiveSdn.Bhd. developmentandstrategic partnershipactivities

TaffuMediaSdn.Bhd. - - 100 100 Provisionofmediaadvertising, Malaysia publishingandprintingservices

DubaitechMarketing - - 100 100 Contentaggregator MalaysiaSdn.Bhd.

KotaemasEdaran - - 100 100 Contentaggregator MalaysiaSdn.Bhd.

Held by Taffu Media Sdn. Bhd.PudongOversea - - 100 100 Provisionofmediaadvertising, MalaysiaCapitalSdn.Bhd. publishingandprintingservices

DivamasPromotions - - 100 100 Provisionofmediaadvertising, MalaysiaSdn.Bhd publishingandprintingservices

NextnationServices - - 100 100 Companysecretarialservices MalaysiaSdn.Bhd.(formerlyknownasGangMediaSdn.Bhd.)

Held by Nextnation Interactive Sdn. Bhd.PTNextnation - - 80 80 Provisionofbusiness IndonesiaPrisma* developmentandstrategic partnershipactivities

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Held by Nextnation Collections Sdn. Bhd.NextnationQahaar - - 100 100 Researchanddevelopment, SingaporeVenturePteLtd* investment,tradingand marketingofcommunication informationtechnologyand lifesciencetechnologies

Held by Nextnation Qahaar Venture Pte LtdQahaarInfracomPteLtd*- - 100 100 Investment,development, Singapore tradingandmarketingfor hardwareandsoftware

Held by Godynamic Investment LimitedCodeWireless - - 100 100 Mobileapplicationservice SingaporePteLtd* provider

ElasitasTechnologies - - 62 62 Investmentholding BritishVirginLimited Island

VisionPhoenix - - 100 100 Mobileapplicationservice BritishVirginGroupLimited provider Island

VinamobVenture - - 100 100 Mobileapplicationservice VietnamCompanyLimited* provider

PTSemestaTirta - - 84 84 Mobileapplicationservice IndonesiaAntaraRaya* provider

PTFlowerStar - - 84 84 Mobileapplicationservice IndonesiaMedia* provider

PTGalaksi - - - 95 Mobileapplicationservice IndonesiaPublishindo*@ provider

Held by Code Wireless Pte LtdOzuraPteLtd* - - 100 100 Gamesandcontent Singapore development,aggregation anddistribution

NextnationMobitech - - 100 100 Mobilemessaging IndiaIndiaPteLtd*# technologies,mobile applicationplatformand softwareprovider

Held by Elasitas Technologies LimitedPTElasitasMulti - - 97 97 Mobileapplicationservice IndonesiaKreasi* provider

(cont’d)

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* CompaniesnotauditedbySJGrantThornton.

# Notrequiredtobeauditedincountryofincorporation.

@ During the financial year, the Group had terminated the share sale agreement on acquisition of asubsidiary,PTGalaksiPublishindo.TheeffectofthedeemeddisposalwasnotdisclosedinthefinancialstatementsastheDirectorsareintheopinionthattheeffectisimmaterial.

15. FIXED DEPOSITS WITH A LICENSED BANK

Group

(i) FixeddepositsamountingtoRMNil(2008:RM80,000)areheldintrustbyDirectorofsubsidiarycompanyandhavebeenpledged toa licensedbank forbanking facilities granted to subsidiarycompany.

(ii) Fixed deposits amounting to RM538,503 (2008: RM518,000) have been pledged to a licensedbankforbankingfacilitiestothesubsidiarycompanyinaccordancewithNote8(a)totheFinancialStatements.

16. AMOUNT DUE FROM/ (TO) ASSOCIATE COMPANIES Amountdue from/ (to)associatecompaniesareunsecured,bearno interestandare repayableupon

demand.

17. TRADE RECEIVABLES

Group

2009RM

2008RM

Tradereceivables 23,159,555 25,172,226

Less:Allowancefordoubtfuldebts (845,132) -

22,314,423 25,172,226

Thecurrencyexposureprofileofthetradereceivablesareasfollows:-

Group

2009RM

2008RM

RinggitMalaysia 9,346,443 13,838,595

IndonesiaRupiah 11,799,800 5,935,755

SingaporeDollar 10 85,976

VietnamDong 398,879 227,392

USDollar 769,291 5,084,508

22,314,423 25,172,226

ThenormalcredittermsgrantedbytheGrouptothetradereceivablesrangingfrom30daysto90days.

(cont’d)

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18. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

Group Company2009rm

2008rm

2009rm

2008rm

Otherreceivables 12,631,845 15,450,814 - -

Deposits 741,254 906,363 - -

Prepayments 1,071,130 1,697,354 13,875 86,510

14,444,229 18,054,531 13,875 86,510

Includedinotherreceivables,depositsandprepaymentsoftheGroupareadvancesamountedtoRM8,645,050(2008:RM11,700,000)foraninvestmentinajointresearchanddevelopmentprojectforafinancialtransactionsystem.

19. AMOUNT DUE FROM/ (TO) SUBSIDIARY COMPANIESAmount due from/ (to) subsidiary companies are unsecured, bear no interest and have no fixed terms ofrepayment.

20. CASH AND CASH EQUIVALENTS

Group Company2009rm

2008rm

2009rm

2008rm

Cashandbankbalances 13,549,552 15,562,865 96,812 84,535

Depositwithlicensedbank 414,252 - - -

Bankoverdraft - (967,571) - -

��,��,�0� 14,595,294 96,812 84,535

Thecurrencyexposureprofileofcashandcashequivalentsareasfollows:-

Group Company�00�RM

�00�RM

�00�RM

�00�RM

RinggitMalaysia 10,459,359 11,679,819 96,812 84,535

IndonesiaRupiah 1,444,847 2,242,505 - -

SingaporeDollar 210,283 162,854 - -

VietnamDong 231,909 23,316 - -

USDollar 1,617,406 486,800 - -

��,��,�0� 14,595,294 96,812 84,535

ThebankoverdrafthasbeensecuredbywayofsecurityasdisclosedinNote8totheFinancialStatements.

Interestrateischargedat1.50%perannumabovethebank’sBaseLendingRate.

(cont’d)

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21. TRADE PAYABLES

Group

2009RM

2008RM

Tradepayables 5,585,036 3,170,744

Thecurrencyexposureprofileofthetradepayablesisasfollows:-

Group

2009RM

2008RM

RinggitMalaysia 966,820 961,831

IndonesiaRupiah 4,617,795 113,975

SingaporeDollar 421 35,071

USDollar - 2,059,867

5,585,036 3,170,744

Thenormalcredittermsgrantedbythetradepayablesrangefrom30daysto90days.

22. OTHER PAYABLES AND ACCRUALS

Group Company2009rm

2008rm

2009rm

2008rm

Accruals 2,299,404 2,067,496 63,400 55,862

Otherpayables 849,271 803,980 34,628 49,040

3,148,675 2,871,476 98,028 104,902

23. AMOUNT DUE TO DIRECTORSTheamountduetoDirectorsisunsecured,bearnointerestandhasnofixedtermofrepayment.

24. REVENUE

Group2009RM

2008RM

Servicerendered 54,937,777 65,002,293

Saleofgoods - 143,388

54,937,777 65,145,681

(cont’d)

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25. COST OF SALES

Group

2009RM

2008RM

Costofservicerendered 40,749,318 44,651,775

Saleofgoods - 246,406

40,749,318 44,898,181

26. FINANCE COSTS

Group

2009RM

2008RM

Interestexpenseson:-

-bankoverdraft 44,574 -

-banktermloans 708,094 203,168

-hirepurchase 88,321 114,410

840,989 317,578

27. LOSS BEFORE TAXATION

Lossbeforetaxationhasbeendeterminedaftercharging:-

Group Company2009rm

2008rm

2009rm

2008rm

Allowancefordoubtfuldebts 845,132 - - -

Amortisationof:-

-intangibleassets 871,310 625,163 - -

-developmentexpenditure 814,699 1,818,559 - -Auditors’remunerationSJGrantThornton-statutoryaudits

-currentyear 70,000 80,644 13,000 13,000

-underprovisioninprioryear 6,225 13,600 - 1,000

-otherservices 3,000 - 3,000 -

Otherexternalauditors

-statutoryaudits

-currentyear 55,581 31,882 - -

-underprovisioninprioryear 480 - - -

(cont’d)

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27. LOSS BEFORE TAXATION (cont’d)Lossbeforetaxationhasbeendeterminedaftercharging(cont’d):-

Group Company2009rm

2008rm

2009rm

2008rm

Depreciationofproperty,plantandequipment(Note9) 3,082,897 1,513,480 - -

Directors’remuneration

- Fees 101,195 81,053 94,000 75,540

-Otheremoluments 835,051 380,290 11,000 7,200Lossondisposalofproperty,plantandequipment - 29,424 - -

Lossondisposalofsubsidiarycompany - ��,�� - -

Rentalof:-

-premises 521,202 498,590 - -

-others 10,133 578 - -

Andcrediting:-Allowancefordoubtfuldebtsnolongerrequired - 1,389,912 - -

Interestincome 108,815 184,856 345 42,217

ThedetailsofDirectors’remunerationoftheGroupandoftheCompanyareasfollows:-

Group Company2009rm

2008rm

2009rm

2008rm

DirectorsoftheGroupExecutiveDirectors-Salaries,bonusandallowances 736,000 338,870 - --Contributiontodefinedcontributionplan 86,760 33,600 - -

-Otherbenefits 1,291 620 - -

824,051 373,090 - -Non-ExecutiveDirectors

-Fees 101,195 81,053 94,000 75,540

-Meetingallowance 11,000 7,200 11,000 7,200

112,195 88,253 105,000 82,740

(cont’d)

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28. TAXATION

Group Company2009rm

2008rm

2009rm

2008rm

Currentyearprovision:-

-Malaysianincometax - 44,900 - -

-Foreignincometax 18,639 388,025 - -

18,639 432,925 - -

(Over)/underprovisioninprioryear:-

-Malaysianincometax (110) 1,229 - (4,110)

18,529 434,154 - (4,110)

Malaysianincometaxiscalculatedatthestatutoryrateof25%(2008:26%)oftheestimatedtaxableprofitsforthefiscalyear.Thecomputationofdeferredtaxasat30April2009hasreflectedthesechanges

Tax expense for other taxation authorities are calculated at the rates prevailing in those respectivejurisdictions.

Thetaxationprovisionof theGroupis lowerthanthestatutorytaxrate.Thedisproportionatetaxratewasa resultofpioneer statusenjoyedbyoneof its subsidiarycompany,NextnationNetworkSdn.Bhd., thusresultinginitsprofitbeingexemptedfromtax.

Anumericalreconciliationbetweentheaverageeffectivetaxrateandthestatutorytaxrateareasfollows:-

Group Company2009rm

2008rm

2009rm

2008rm

Lossbeforetaxation (7,179,294) (5,663,507) (474,531) (438,831)Incometaxatrateof25%(2008:26%) (1,794,824) (1,472,512) (118,633) (114,096)

Incomenotsubjecttotax - (672,744) - -Non-allowableexpenses 923,917 2,550,059 118,633 114,096TaxsavingasaresultoffirstRM500,000taxableincometaxedat20% - (10,086) - -

Differentoftaxrateinothercountry 285,815 (411,700) - -Deferredtaxassetsnotrecognisedinthefinancialstatements 603,731 449,908 - -

Currentfinancialyeartaxexpenses 18,639 432,925 - -(Over)/underprovisioninpreviousfinancialyear (110) 1,229 - (4,110)

Totaltaxexpenses 18,529 434,154 - (4,110)

(cont’d)

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29. LOSS PER ORDINARY SHARE

Group(a) Basic

Basiclossperordinaryshareforthefinancialyeariscalculatedbydividingthelossforthefinancialyearattributable toordinaryequityholdersof theCompanyby theweightedaveragenumberofordinarysharesoutstandingduringthefinancialyear.

Group

2009RM

2008RM

Netlossforthefinancialyear (6,710,624) (8,632,032)Weightedaveragenumberofordinarysharesinissue(unit) 415,800,000 415,430,137

Basiclosspershare(sen) (1.61) (2.08)

(b) Diluted

Duringthefinancialyear,therewerenodilutiveordinarysharesinissuethatgavedilutedeffecttotheearningspershare.

30. EMPLOYEES BENEFIT EXPENSES

Group

2009RM

2008RM

Staffcosts(includingDirectors’remuneration)

-chargedtoincomestatements 8,483,077 7,847,134

-includedinresearchanddevelopmentexpenditure 2,256,710 2,617,783

10,739,787 10,464,917

31. CONTINGENT LIABILITY

Group

2009RM

2008RM

CorporateguaranteegrantedtoasubsidiaryCompany 19,079,989 16,382,080

(cont’d)

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32. CAPITAL COMMITMENT

Group

2009RM

2008RM

Authorisedandcontractedfor:-

-purchaseofofficeequipment - 4,301,380

-purchaseofproperties 2,539,199 3,054,710

2,539,199 7,356,090

33. RELATED PARTY DISCLOSURE

For the purposes of these financial statements, parties are considered to be related to the Group iftheGrouphas theability,directlyor indirectly, tocontrol thepartyorexercise significant influenceoverthepartyinmakingfinancialandoperatingdecisions,orviceversa,orwheretheGroupandtherelatedpartyaresubjecttocommoncontrolorcommonsignificantinfluences.Relatedpartiesmaybeindividualsorotherentities.

TheGrouphasarelatedpartyrelationshipwithitsDirectorsandotherkeymanagementpersonnel.

Transactions with Key Management Personnel

Key Management Personnel Compensation

TheremunerationofDirectorsandothermembersofkeymanagementpersonnelduringthefinancialyearareasfollows:-

Group

2009RM

2008RM

Salariesandothershort-termemployeebenefits 1,968,969 1,347,430

Post-employmentbenefits:-

Definedcontributionplan 232,937 143,604

2,201,906 1,491,034

OthermembersofkeymanagementpersonnelcomprisepersonotherthantheDirectorsoftheGroup,havingauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheGroupeitherdirectlyorindirectly.

(cont’d)

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33. RELATED PARTY DISCLOSURE (cont’d)Theoutstandingbalancesarisingfromtherelatedpartytransactionareasfollows:-

Group Company2009rm

2008rm

2009rm

2008rm

Receivablefromassociatecompany 1,050,024 2,660,031 - -Receivablesfromsubsidiarycompanies - - 36,373,559 36,797,504

1,050,024 2,660,031 36,373,559 36,797,504

Payabletoassociatecompany 240,760 231,814 - -

Payabletosubsidiarycompanies - - 2,143 1

240,760 231,814 2,143 1

34. FINANCIAL INSTRUMENTS (a) Interestraterisk

Theinterestrateriskthatfinancialinstruments’valueswillfluctuateasaresultofchangesinmarketinterest rates and the effective average interest rates on classes of financial assets and financialliabilitiesareasfollows:-

Less than1 financial

YearRM

1 to 5 financial

yearsRM

More than 5 financial

yearsRM

TotalRM

Effective interest rate during the financial

year

Group2009Financial assetFixeddepositswithalicensedbank 414,252 - 538,503 952,755

2.60%to2.90%

Financial liabilities

Financepayables 523,649 747,150 73,283 1,344,0822.49%to

4.10%

Termloans 2,133,850 5,914,194 2,620,030 10,668,0745.65%to

7.00%

(cont’d)

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34. FINANCIAL INSTRUMENTS (cont’d) (a) Interestraterisk(cont’d)

Less than1 financial

YearRM

1 to 5 financial

yearsRM

More than 5 financial

yearsRM

TotalRM

Effective interest rate during the financial

year

Group2008Financial assetFixeddepositswithalicensedbank 80,000 - 518,000 598,000

3.50%to7.00%

Financial liabilities

BankOverdraft 967,571 - - 967,571 8.25%

Financepayables 355,634 930,968 24,384 1,310,9862.65%to

4.87%

Termloans 2,871,572 2,735,351 2,259,273 7,866,1963.85%to

7.00%

(b) Creditrisk

Cash deposits and trade receivables may give rise to credit risk which requires the loss to berecognisedifacounterpartyfailstoperformascontracted.ItistheGroup’spolicytomonitorthefinancialstandingofthesecounterpartiesonanongoingbasistoensurethattheGroupisexposedtominimalcreditrisk.

TheGroup’sprimaryexposuretocreditriskarisesthroughitstradereceivables.TheGroup’stradingtermswithitscustomersaremainlyoncredit.Thecreditperiodisgenerallyforaperiodofone(1)month,extendinguptothree(3)monthsformajorcustomers.TheGroupseekstomaintainstrictcontroloveritsoutstandingreceivablesviaacreditcontrolpolicytominimisecreditrisk.Overduebalancesarereviewedregularlybycreditcontrolcommittee.

TheGroup’shistoricalexperiencein thecollectionof tradereceivables fallswithintherecordedallowances.Duetothesefactors,theDirectorsbelievethatnoadditionalcreditriskbeyondamountsprovidedfordoubtfuldebtsisinherentintheGroup’stradereceivables.

In respect of the deposits, cash and bank balances placed with major financial institutions inMalaysia,Singapore,Thailand, IndonesiaandChina, theDirectorsbelieve that thepossibilityofnon-performancebythesefinancialinstitutionsisremoteonthebasisoftheirfinancialstrength.

(c) Fairvalues

The carrying amounts of financial assets and liabilities of the Group at the balance sheet dateapproximatedtheirfairvalues.

(cont’d)

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35. SEGMENT REPORTINGTheGroupoperatespredominantlyinonebusinesssegmentandtheyoperateintwogeographicalareasoftheworldasfollows:-

2009Malaysia

rmOverseas

rmEliminations

rmConsolidated

rm

RevenueExternal 46,474,449 20,357,784 (11,894,456) 54,937,777

ResultSegmentresultInterestincome

(4,839,418)58,275

(4,038,814)181,652

2,300,000-

(6,578,232)239,927

LossfromoperationsFinancecosts

(4,781,143)(805,966)

(3,857,162)(35,023)

2,300,000-

(6,338,305)(840,989)

LossbeforetaxationTaxation

(7,179,294)(18,529)

Lossforthefinancialyear (7,179,823)

AssetsSegmentassetsTaxrecoverable

390,474,417586,117

20,577,331505,078

(323,766,302)-

87,285,4461,091,195

Consolidatedtotalassets 88,376,641

LiabilitiesSegmentliabilities 296,751,937 55,531,256 (328,368,181) 23,915,012

Other informationCapitalexpenditureDepreciationAmortisationofintangibleassetsAmortisationofdevelopmentexpenditure

8,125,4072,221,627

-

814,699

913,064861,270871,310

-

---

-

9,038,4713,082,897

871,310

814,699

(cont’d)

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35. SEGMENT REPORTING (cont’d)TheGroupoperatespredominantlyinonebusinesssegmentandtheyoperateintwogeographicalareasoftheworldasfollows(cont’d):-

2008Malaysia

rmOverseas

rmEliminations

rmConsolidated

rm

RevenueExternal 56,216,503 34,738,215 (25,809,037) 65,145,681

ResultSegmentresultInterestincome

(1,024,395)90,221

(4,506,390)94,635

--

(5,530,785)184,856

LossfromoperationsFinancecosts

(934,174)(291,426)

(4,411,755)(26,152)

--

(5,345,929)(317,578)

LossbeforetaxationTaxation

(5,663,507)(434,154)

Lossforthefinancialyear (6,097,661)

AssetsSegmentassetsTaxrecoverable

108,025,389458,805

23,506,89328,706

(44,306,458)-

87,225,824487,511

Consolidatedtotalassets 87,713,335

LiabilitiesSegmentliabilities 15,233,243 49,955,706 (48,764,868) 16,424,081

Other informationCapitalexpenditureDepreciationAmortisationofintangibleassetsAmortisationofdevelopmentexpenditure

10,042,716938,389

-

1,818,559

1,500,459575,091625,163

-

---

-

11,543,1751,513,480

625,163

1,818,559

36. MATERIAL LITIGATION On22January2009,awholly-ownedsubsidiaryof theCompany,UsapeNelsonWirelessSdn.Bhd.

(“Usape”),hadserveawritofsummonsandstatementofclaimamountingtoRM19,916,823toMarcoKioskBerhad(“MKB”or“Defendant”)forbreachofpartnershipagreemententeredintobetweenUsapeandMKBdated2July2004.On10March2009,theDefendanthasenteredtheirstatementofdefence.Thesuitiscurrentlyinthestageofcasemanagementmeeting.

TheDirectorsareoftheopinionthatthewritofsummonsandstatementofclaimsisnotexpectedtohaveanymaterialfinancialandoperatingimpactontheGroupasatdateofthisreport.

(cont’d)

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ThedetailsofpropertiesownbytheGroupasat30April2009aresetoutbelow:

Location

Land/Built-up Area (sq/ft)

Description/Existing use

Age of Building

(year)Date of

Acquisition

Net Book Value as at

30 April 2009(RM)

Unit909,BlockF,PhileoDamansaraOne,PetalingJaya,Selangor 2,181

Freeholdofficeunit/Office 8 29/4/2004 444,824


Freeholdofficeunit/Office 8 8/10/2004 465,110.43


Freeholdofficeunit/Office 8 23/11/2004 455,583.33

Unit/LotA-05NZXCommercialCentre 7,781

Freeholdofficeunit/Office 2 25/7/2007 1,883,794.67

Unit/LotA-06NZXCommercialCentre 7,781

Freeholdofficeunit/Office 2 25/7/2007 1,883,794.67

MegaKuninganBaratKav-E-4-3,UnitOL3.15&18,KuninganTimurSetiaBudiJakartaSelatan12950Indonesia 5,031

Freeholdofficeunit/Office 2 12/7/2007 258,554

KomplekApartmentTamanRasuna,Tower4UnitO.B.27.B,JlHRRasunaSaidJakarta12960Indonesia 747

FreeholdCondominium 12 29/8/2007 215,352

BlockB-09,Lot53579,PekanKinraraDistrictofPetalingStateofSelangorDarulEhsan 9,726

Freeholdofficeunit/Office

Underconstruction 11/1/2008 3,174,011

Unit709CasaDamansaraCondominium 1,153

FreeholdCondominium 9 11/5/2008 286,594.81

ApartmentSudirmanParkUnitA/26/CFJl.K.H.MasMansyurKav.35JakartaPusatIndonesia 893.08

FreeholdApartment 5 13/9/2008 169,616

lISt of propertIeS

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AuthorizedShareCapital RM200,000,000IssuedandPaid-upShareCapital RM41,580,000ClassofShares OrdinarySharesofRM0.10eachNumberofShareholders 3,376VotingRights Onevoteperordinaryshare

List of Substantial Shareholders as per the Register of Substantial Shareholders as at 4 September 2009

Substantial Shareholders DirectNo. of Shares Held

% Indirect %SmartTowerSdnBhd 113,590,000 27.32 - -

KenangaNominees(Asing)SdnBhdExemptanforPhillipSecuritiesPteLtd 21,300,000 5.12 - -

TeyPorYee 10,177,500 2.45 113,590,000(1) 27.32

SeePohYee 5,930,000 1.43 113,590,000(1) 27.32

TeyPorChen 8,653,500 2.08 113,590,000(1) 27.32

Note:(1) Deemed interested by virtue of their direct substantial shareholdings in Smart Tower Sdn Bhd.

List of Director’s Shareholdings as per the Register of Directors’ Shareholdings as at 4 September 2009

Directors’ Shareholdings DirectNo. of Shares Held

% Indirect %TeyPorYee 10,177,500 2.45 113,590,000(1) 27.32

SeePohYee 5,930,000 1.43 113,590,000(1) 27.32

YapSiokTeng 150,000 0.04 - -

FuLitFung - - - -

LeouThiamLai - - - -

UngkuA.RazakbinUngkuA.Rahman - - - -

Note:(1) Deemed interested by virtue of their direct substantial shareholdings in Smart Tower Sdn Bhd.

Distribution of Shareholdings as per the Record of Depositors as at 4 September 2009

ShareholdingsNo. of

Shareholders% of

SareholdersNo. of

Shares Held% of Issued

Share Capital1 – 99 20 0.59 975 0.00

100 – 1,000 84 2.49 58,375 0.01

1,001 – 10,000 1,063 31.49 6,863,550 1.65

10,001 – 100,000 1,733 51.33 69,081,450 16.61

100,001 – 20,789,999 474 14.04 204,905,650 49.28

20,790,000andabove 2 0.0� ��,��0,000 ��.��

Total 3,376 100.00 415,800,000 100.00

analySIS of ShareholDInGSas at 4 September 2009

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Thirty (30) Largest Securities Account Holders as per the Record of Depositors as at 4 September 2009

no. Name of ShareholdersNo of

Shares Held% of Issued

Share Capital�. SmartTowerSdnBhd 113,590,000 27.32

�. KenangaNominees(Asing)SdnBhdExemptanforPhillipSecuritiesSdnBhd 21,300,000 5.12

�. GanCheongGap 11,440,800 2.75

�. KumpulanModalPerdanaSdnBhd 8,268,400 1.99

�. TeyPorYee 7,153,500 1.72

�. SeePohYee 5,930,000 1.43

�. GohMeiYuin 5,000,000 1.20

�. TeyPorChen 4,536,000 1.09

�. RHBNominees(Tempatan)SdnBhdPledgedSecuritiesAccountforOngKahHuat 4,516,000 1.09

�0. TeyPorChen 4,117,500 0.99

��. YapBeeHua 3,491,650 0.84

��. HLGNominee(Tempatan)SdnBhdHongLeongBankBhdforChristopherCheeMunHoe 3,380,000 0.81

��. LowKimSoi@LowTienSang 3,294,600 0.79

��. TeyPorYee 3,024,000 0.73

��. PublicNominees(Tempatan)SdnBhdPledgedSecuritiesAccountforLeeYihLeang(E-PPG) 2,500,000 0.60

��. HDMNominees(Tempatan)SdnBhdPledgedSecuritiesAccountforOngKahHuat(M03) 2,297,800 0.55

��. ChiaBengTat 2,044,500 0.49

��. BunSekYen 2,010,000 0.48

��. CimsecNominees(Asing)SdnBhdCIMBBankforWangWei-Hsin(MP0043) 1,784,200 0.43

�0. LeeBoonHan 1,700,000 0.41

��. SewChooiLan 1,545,000 0.37

��. KohLyeSiang 1,500,000 0.36

��. MedicalCorporationAustralasiaLimited 1,500,000 0.36

��. MaybanNominees(Tempatan)SdnBhdPledgedSecuritiesAccountforOngKokThye 1,356,000 0.33

��. MaybanNominees(Tempatan)SdnBhdPledgedSecuritiesAccountforChangFokChin 1,300,000 0.31

�� ViLeongKoon 1,210,000 0.29

��. KhooHuaSeng 1,185,700 0.29

��. TanSiewKiow 1,170,000 0.28

��. KennethVun@CunYunLiun 1,101,000 0.26

�0. SJSecNominees(Tempatan)SdnBhdPledgedSecuritiesAccountforChuahChongGuan(SMT) �,0��,�00 0.��

analySIS of ShareholDInGS

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NOTICE IS HEREBY GIVENthattheFifthAnnualGeneralMeetingoftheCompanywillbeheldatDewanBerjaya,BukitKiara Equestrian&CountryResort, JalanBukitKiara,Off JalanDamansara, 60000KualaLumpuronMonday,26October2009at9:00a.m.forthefollowingpurposes:-

AGENDA

1. ToreceivetheAuditedFinancialStatementsforthefinancialyearended30April2009togetherwiththeReportsoftheDirectorsandtheAuditorsthereon. (Resolution1)

2. Toapprove thepaymentofDirectors’Fees for the financialyearended30April2009. (Resolution2)

3. Tore-electthefollowingDirectorswhoshallretireinaccordancewithArticle83oftheCompany’sArticlesofAssociation,andbeingeligible,haveofferedthemselvesforre-election:-

(a)Mr.SeePohYee(b)Mr.LeouThiamLai

(Resolution3)(Resolution4)

4. To re-appoint Messrs. SJ Grant Thornton as Auditors of the Company until theconclusionofthenextAnnualGeneralMeetingandtoauthorisetheDirectorstofixtheirremuneration. (Resolution5)

5. Totransactanyotherordinarybusinessofwhichduenoticeshallhavebeengiven.

ByOrderoftheBoard

CHUA SIEW CHUAN (MAICSA 0777689)TAN AI NING (MAICSA 7015852)CompanySecretaries

KualaLumpur29September2009

Notes:

1. Inrespectofdepositedsecurities,onlymemberswhosenamesappearintheRecordofDepositorson19October2009(“GeneralMeetingRecordofDepositors”)shallbeeligibletoattendtheMeeting.

2. AmemberoftheCompanyentitledtoattendandvoteattheMeetingisentitledtoappointatleastone(1)proxytoattendandvoteinhisstead.AproxymaybutneednotbeamemberoftheCompanyandamembermayappointanypersontobehisproxywithoutlimitationandtheprovisionofSection149(1)(b)(c)and(d)oftheCompaniesAct,1965shallnotapplytotheCompany.

3. WhereamemberoftheCompanywhoisanauthorisednomineeasdefinedintheMalaysianSecuritiesIndustry(CentralDepositories)Act,1991mayappointatleastone(1)proxyinrespectofeachSecuritiesAccountwhichitholdswithordinarysharesoftheCompanystandingtothecreditofthesaidSecuritiesAccount.

4. Whereaholderappointstwoormoreproxies,theappointmentshallbeinvalidunlesshespecifiestheproportionsofhisshareholdingstoberepresentedbyeachproxy.

notICe of annual General meetInG

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5. The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney dulyauthorisedinwritingorif theappointorisacorporation,eitherunderitscommonsealorunderthehandofanofficerorattorneydulyauthorised.

6. Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority,ifany,underwhichitissignedoranotariallycertifiedcopyofthatpowerorauthority,mustbedepositedattheRegisteredOfficeoftheCompanyatLevel7,MenaraMilenium,JalanDamanlela,PusatBandarDamansara,DamansaraHeights,50490KualaLumpurnotlessthan48hoursbeforethetimeforholdingtheMeetingoratanyadjournmentthereof.

notICe of annual General meetInG

(cont’d)

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Form of Proxy

No.ofSharesHeld

Nextnation Communication Berhad(CompanyNo.660055-H)

I/We, ……..……………………………………….......................…….............….. NRICNo. …................………………………....…....(FULLNAMEINBLOCKCAPITALS)

of ……………………………………………………………………………….....................................................………... beingamember(s)(FULLADDRESS)

ofNEXTNATIONCOMMUNICATIONBERHAD,herebyappoint.......................................…………..............………...………………….(FULLNAME)

(NRICNo. ………………………………...........…….............................………) of ……..………….....................………………………(FULLADDRESS)

orfailinghim/her,………….............………………………............................…. (NRICNo. …...…….....………........…………………)(FULLNAME)

..………………………………………………..........................................……………………………......……………………………………..(FULLADDRESS)

asmy/ourproxytovoteforme/usandonmy/ourbehalfattheFifthAnnualGeneralMeetingoftheCompanyheldatDewanBerjaya,BukitKiaraEquestrian&CountryResort,JalanBukitKiara,OffJalanDamansara,60000KualaLumpuronMonday,26October2009at9:00a.m.oratanyadjournmentthereof.

Pleaseindicatean“X”inthespaceprovidedbelowonhowyouwishyourvotestobecasted.Ifnospecificinstructionastovotingisgiven,theProxywillvoteorabstainfromvotingathis/herdiscretion.

RESULUTIONS FOR AGAINST

Resolution1 ToreceivetheAuditedFinancialStatementsforthefinancialyearended30April2009togetherwiththeReportsoftheDirectorsandtheAuditorsthereon.

Resolution2 ToapprovethepaymentofDirectors’Feesforthefinancialyearended30April2009.

Resolution3 Tore-electMr.SeePohYeewhoshallretireinaccordancewithArticle83oftheCompany'sArticlesofAssociation.

Resolution4 Tore-electMr.LeouThiamLaiwhoshallretireinaccordancewithArticle83oftheCompany'sArticlesofAssociation.

Resolution5Tore-appointMessrs.SJGrantThorntonasAuditorsof theCompanyuntil theconclusionofthenextAnnualGeneralMeetingof theCompanyand toauthorise theDirectors to fix theirremuneration.

Signedonthis…......dayof...............................2009

.......................................................................SignatureofMember(s)/CommonSeal

Notes:

1. Inrespectofdepositedsecurities,onlymemberswhosenamesappearintheRecordofDepositorson19October2009(“GeneralMeetingRecordofDepositors”)shallbeeligibletoattendtheMeeting.

2. AmemberoftheCompanyentitledtoattendandvoteattheMeetingisentitledtoappointatleastone(1)proxytoattendandvoteinhisstead.AproxymaybutneednotbeamemberoftheCompanyandamembermayappointanypersontobehisproxywithoutlimitationandtheprovisionofSection149(1)(b)(c)and(d)oftheCompaniesAct,1965shallnotapplytotheCompany.

3. WhereamemberoftheCompanywhoisanauthorisednomineeasdefinedintheMalaysianSecuritiesIndustry(CentralDepositories)Act,1991mayappointatleastone(1)proxyinrespectofeachSecuritiesAccountwhichitholdswithordinarysharesoftheCompanystandingtothecreditofthesaidSecuritiesAccount.

4. Whereaholderappointstwoormoreproxies,theappointmentshallbeinvalidunlesshespecifiestheproportionsofhisshareholdingstoberepresentedbyeachproxy.

5. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointororofhisattorneydulyauthorisedinwritingoriftheappointorisacorporation,eitherunderitscommonsealorunderthehandofanofficerorattorneydulyauthorised.

6. Theinstrumentappointingaproxyandthepowerofattorneyorotherauthority,ifany,underwhichitissignedoranotariallycertifiedcopyofthatpowerorauthority,mustbedepositedattheRegisteredOfficeoftheCompanyatLevel7,MenaraMilenium,JalanDamanlela,PusatBandarDamansara,DamansaraHeights,50490KualaLumpurnotlessthan48hoursbeforethetimeforholdingtheMeetingoratanyadjournmentthereof.

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fold this flap foR sealing

fold heRe

fold heRe

Nextnation Communication Berhad Level7,MenaraMilenium, JalanDamansara, PusatBandarDamansara, DamansaraHeights, 50490KualaLumpur.

Stamp

Annual Report 2009

Nextnation Communication Berhad (660055-H)

Nextnation Communication Berhad(660055-H)

Corporate OfficeUnit 909 Block F Phileo Damansara One, No. 9, Jalan 16/11, 46350 Petaling Jaya, Selangor Darul Ehsan, Malaysia.

Tel : +603 7494 4839 Fax : +603 7494 4836

Research & Development Officec/o NTT MSC Sdn Bhd. No. 43000 Jalan APEC, 63000 Cyberjaya, Selangor Darul Ehsan, Malaysia

Tel : +603 8311 2000 Fax : +603 8311 2090

www.nextnationnet.com

Nextnation C

omm

unication Berhad

(660055-H)

Annual R

eport 2009

sep 29, 2009 · research & development office c/o ntt msc sdn bhd. no. 43000 jalan apec, 63000...

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