21St Annual General Meeting (Q&A Section)

Komarkcorp Bhd

21st Annual General Meeting (Q&A section)

After the presentation, the Chairman invited questions from the floor in respect of the financial statements for the financial year ended 30 April 2017. The salient issues raised were as follows:-

• The Company’s plans for its operations in the Philippines and to provide further details.

Komarkcorp’s response:

The Group currently has existing customers in the Philippines and is currently looking for suitable location at the outskirts of Manila to set up its operations. It already has a company (subsidiary) incorporated in the Philippines and about RM1.0 million has been allocated for the operations including a proposed move of its machine in Singapore to the Philippines.

• The Company’s plan to improve profitability.

Komarkcorp’s response:

With its internal tussle being resolved, the Group can now focus on rebuilding the business and secure lost business from its single largest customers, albeit at lower volume and high discounts rate being accorded. The Company only regained about 50% business from Shell and plans to strengthen its business by securing new customers.

• To provide the nature of the inventories referred to in Note 11 of the Audited Financial Statements on Allowance for slow moving manufactured inventories.

Komarkcorp’s response (by Mr Chong):

The inventories are related to the Thailand branch’s mould and cut materials.

• To explain the increase in Directors’ Fees and Other Emoluments as set out in Note 23 of the Audited Financial Statements.

Komarkcorp’s response (by Mr Chong):

The increase in Directors Fees was mainly due to increase in fees to Executive Directors of the Company and subsidiaries. There was no change in the fees of the Independent Directors of the Company for FYE 2017.

• To explain the breakdown of Staff Cost as set out in Note 23 of the Audited Financial Statements.

Komarkcorp’s response (by Mr Chong):

For FYE 2017, the amount was broken down and itemised as set out in Note 23 whilst the in the previous financial year, the staff costs were lumped under a single amount. The detailed staff cost was shown for better clarity and transparency.

• To explain the tax payments/provisions as set out in Note 23 of the Audited Financial Statements.

Komarkcorp’s response (by Mr Chong):

The increase in Malaysian income tax from RM45,000 in 2016 to RM321,000 in 2017 was mainly due to the profits generated by its Johor branch.

The increase in overseas income tax payment from RM0.699 million to RM1.035 million was due to the profits made by the Thailand branch at the beginning of the financial year (before September 2016) despite it showing losses by year end.

The income not subject to tax relates to non-deductible expenses pertaining to provisions of slow moving mould & cut products.

After addressing the questions received, it was recorded that the Audited Financial Statements of the Company for the financial year ended 30 April 2017 together with the Directors’ and Auditors’ reports thereon had been duly received and adopted by the shareholders.