GABUNGAN KOMPUTER NASIONAL MALAYSIA AGM REPOT.doc · Web viewDr. Teh Ying Wah 2015 Dr. Wong Kim Hoe...

GABUNGAN KOMPUTER NASIONAL MALAYSIA 2018 ANNUAL REPORT

CONTENTS Page No.

NOTICE OF ANNUAL GENERAL MEETING 1

OBJECTIVES OF THE GABUNGAN 2

COUNCIL 2018/2019 3

COMMITTEES 2018/2019 4

PRESIDENT'S STATEMENT 5 - 10

REPORT OF THE COUNCIL 11 - 14

BALANCE SHEET 15

STATEMENT OF INCOME AND EXPENDITURE 16

CASH FLOW STATEMENT 17

NOTES TO THE FINANCIAL STATEMENTS 18- 33

STATEMENT BY COUNCIL MEMBERS 34

STATUTORY DECLARATION 34

REPORT OF THE AUDITORS 35 - 37

FORM OF PROXY 38

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NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN that the Thirty First Annual General Meeting of the Gabungan Komputer Nasional Malaysia will be held at the MNCC Office, Unit 916, 9th

Floor, Block A, Damansara Intan, No. 1 Jalan SS 20/27, 47400 Petaling Jaya, Selangor Darul Ehsan on Thursday, 27 June 2019 at 6.30 p.m.

AGENDA

1. To receive and, if approved, to adopt the Annual Report of the Council for the year ended December 31, 2018.

2. To receive and, if approved, to adopt the Audited Financial Statements for the year ended December 31, 2018.

3. To receive and approve the estimates of Income and Expenditure and the programme of activities for the year 2019.

4. To elect four (4) members to the Council.

Pursuant to Article 32, the following members have been nominated for election to the Council.

(1) Kunaseelan a/l Rajaretnam(2) Yap Yoke Wan(3) Charles Franklin Moreira(4) Dr. Teh Ying Wah

5. To re-appoint RSM Malaysia as Auditors.

6. To transact any other business of which due notice shall have been given.

By order of the Council

Rebecca HoSecretary

Petaling Jaya12 June 2019

NOTE:Pursuant to Section 149 of the Companies Act 1965, a member entitled to attend and vote at the meeting is entitled to appoint another person or persons (whether member or not) as his proxy to attend and vote instead of the member. The instrument appointing the proxy must be deposited at the Registered Office of the Gabungan at Unit 916, 9th

Floor, Block A Damansara Intan, No. 1 Jalan SS 20/27, 47400 Petaling Jaya not less than 24 hours before the time set for holding the meeting.

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OBJECTIVES OF THE GABUNGAN

The principal objectives of the Gabungan as set out in the Memorandum and Articles of Association of the Gabungan are :

To establish and maintain a national organisation for persons concerned with and interested in the application and practice of Information Technology, Computer Science, Information Processing and related disciplines.

To promote and develop the science of Information Technology and to foster and maintain research and development into the best means and methods of developing and applying such science and to encourage, disseminate and promote knowledge, education and training and the exchange of information and ideas in respect of all questions relating thereto or connected therewith.

To provide means for considering questions affecting the interests of the computing profession and take whatever action that may seem desirable in relation to legislative or other measures affecting the profession.

To extend as widely as possible the knowledge and appreciation of Information Technology, Information Processing Systems, computer-based control systems and theory related thereto.

OUR ORGANISATION

The Gabungan Komputer Nasional Malaysia [Malaysian National Computer Confederation (MNCC)] is the professional association for those involved in the field of Information Technology.

OUR VISION

MNCC is a confederation dedicated to the development of IT professionals and creation of an information rich society.

OUR MISSION

MNCC's mission is to achieve global competitive advantage through IT Professional Excellence.

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COUNCIL 2018/2019 Year Joined Council

PresidentProf. Dr. Ahmad Zaki A Bakar 2012

Vice President

Prof. Datuk Dr. Khairuddin Ab Hamid 2016

MembersLee Nan Phin 2002R Kunaseelan 2011 Charles Franklin Moreira @ Charlee 2014 Yap Yoke Wan 2014 Dr. Teh Ying Wah 2015Dr. Wong Kim Hoe 2016Hj. Mohamad Nasruddin bin Hj. Mohamad Ariffin (Reappointed on 28 June 2018)Lim Guat Meng, Oneil (Reappointed on 28 June 2018)

Number of meetings = 4

MANAGEMENT COMMITTEE 2018/2019

ChairmanProf. Dr. Ahmad Zaki A Bakar - President

MembersProf. Datuk Dr. Khairuddin Ab Hamid - Vice President R. Kunaseelan - Council Member Hj. Mohamad Nasruddin bin Hj. Mohamad Ariffin - (Appointed on 18 July 2018)Lim Guat Meng, Oneil - (Appointed on 18 July 2018)

Number of meetings = 0

Executive Director SecretarySyed Mohamed Syed Hussin Rebecca Ho Registered OfficeUnit 916, 9th Floor, Block A, Damansara Intan, No. 1, Jalan SS 20/27, 47400 Petaling Jaya

Regional Office- Penang Regional Centre, P O Box 673, 10780 Pulau Pinang- Johore/Melaka Regional Centre, 122, Jalan Susur Perdana Tengah, Taman Bukit Perdana 2, 83000 Batu Pahat, Johor.

Auditors RSM Malaysia5th Floor, Penthouse, Wisma RKT, Block A, No. 2, Jalan Raja Abdullah, Off Jalan Sultan Ismail, 50300 Kuala Lumpur

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COMMITTEES 2018/2019

Membership ApprovalProf. Dr. Ahmad Zaki A Bakar (Chairman) – Prof. Datuk Dr. Khairuddin Ab Hamid R KunaseelanSyed Mohamed Syed Hussin

Membership Promotion Hj. Mohamad Nasruddin bin Hj. Mohamad Ariffin (Chairman)Syed Mohamed Syed Hussin

Professional Development Yap Yoke Wan (Chairman)Dr. Wong Kim Hoe

Training & WorkshopLee Nan Phin (Chairman)Dr. Teh Ying Wah

Penang Regional Centre(Regional Committee)

S Krishnan (Chairman)Surya Dharamdass (Vice-Chairman)Lim Chin Tian (Honorary Secretary)Lee Choon Hong (Honorary Treasurer)Prof. Dr. Zulkhairi bin DahalinTan Kwang EuChew Loong FoongHo Wai Leong

Johore/Melaka Regional Centre (JOMERC)(Regional Committee)

Ng Poh Horng (Chairman)How Munn Po (Vice-Chairman)Bridget Lim (Honorary Secretary)Cheng Hui Siang (Honrary Treasurer)Irvine HingLim Ai ZhiSally SimWallace Lim

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PRESIDENT'S STATEMENT 2019

This year 2019, MNCC celebrates its 51st anniversary since its establishment as the Malaysian Computer Society (MCS) on 22nd March 1968 at Universiti Malaya. Many initiatives that were planned many years ago are finally coming to being. The Board of Computing Professional Malaysia (BCPM) initiative for example, has been our main agenda for many years. This year, the Ministry of Communication and Multimedia (KKMM), finally called the main BCPM stakeholders for a meeting at KKMM office on 22 April 2019 to inform KKMM’s decision on the pending issue. On 14 March 2019, KKMM top management has agreed for the professional recognition of ICT practitioners and the signing of the Seoul Accord be carried out through the Malaysian Board of Technology (MBOT). In the meeting MNCC supported KKMM’s decision on BCPM and the signing of the Seoul Accord to be carried out through MBOT as well as MNCC to assist the process. With this decision, MNCC will be the organization to work with MBOT in developing and preparing candidates to be recognized as ICT professionals. A MNCC taskforce has been setup to pursue this matter and work with MBOT. MNCC will be more aggressive to invite ICT graduates and practitioners to join us since one of the important requirements to be recognized professionally will be membership and an active role in an ICT professional organization.

As reported previously, MNCC is a key member in the APEC IT Skills Project mooted by our parent body, SEARCC. The project has been approved by APEC and our next task is to actively participate in the study with other SEARCC members. The outcome of the project is designed to be used by the private and public sectors in APEC countries, including Malaysia. MNCC plans to host a workshop for this project this year in Kuala Lumpur with SEARCC support and with public and private sectors participation.

MNCC has also been very active in promoting the 4th Industrial Revolution after the Industry4WD Policy was launched last year on 31 October 2018. MNCC together with P2P Talent Development and the Malaysian Productivity Corporation (MPC) hosted a one-day conference titled, “The Industry 4.0: Demystify, Funding & Roadmap” on 30 April 2019 at Hilton Petaling Jaya. The event was a huge success with more than 150 paid participants attending the event which included a mini exhibition.

SEARCC too has been expanding and many countries in the region have joined SEARCC. Next year 2020, Malaysia will celebrate the completion of Vision 2020 and MNCC has proposed to SEARCC to organize and host the SEARCC 2020 conference. I hope all members will continue to support MNCC and make it the successful IT professional organization in the region.

Thank you.

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FINANCIAL RESULTS

The income for the year ending December 31, 2018 was RM 9,740 a decrease of RM 180,676 over the previous year. 2018 recorded an operating deficit of RM 42,661 due to the absence activities conducted by the Gabungan.

MEMBERSHIP

There were 5 new admissions and 2 resignations and 25 deletions during the year. As at 31st

December 2018 the Gabungan has a total number of 179 members.

Grade 2018 2017

Fellow 1 1Member 87 113Life Member 50 49Associate 27 27Provisional Associate 6 4Affiliate 3 3Student 5 4

179 201

MEMBERSHIP PROMOTION

MNCC membership has been on a steady decline over the recent past. Among the main reasons are lack of interest among ICT practitioners, failure to pay up annual subscription for more than two consecutive years and the disruptive impact of technology whereby large organisations nowadays do not need to have a big pool of in-house ICT professional. In the past most of MNCC members had come from this category.

Several steps have been initiated to increase membership. These include offering free membership in a promotion period to those who are still interested to remain as members but are hesitant to pay the subscription arrears.

MNCC realises it is high time to review its activities and make them relevant to today’s situation. Many ICT practitioners nowadays work for vendor organisations of various kinds and a new approach is needed to get them interested to join MNCC.

ICT EXCELLENCE AWARDS

We are still committed to hold this activity. The main hurdle is getting sponsorship from suitable organistions. We have not been successful in getting one this year.

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WEBSITE DEVELOPMENT

The proposed new website has been circulated to the Council members for comments. It has been accepted and the implementation strategy is being worked out.

CONFERENCES, SEMINARS, EXHIBITIONS AND WORKSHOP

THE INDUSTRY 4.0: DEMYSTIFY, FUNDING & ROADMAP

MNCC has also been very active in promoting the 4 th Industrial Revolution after the Industry4WD Policy was launched last year on 31 October 2018. MNCC together with P2P Talent Development and the Malaysian Productivity Corporation (MPC) hosted a one-day conference titled, “The Industry 4.0: Demystify, Funding & Roadmap” on 30 April 2019 at Hilton Petaling Jaya. The event was a huge success with more than 150 paid participants attending the event which included a mini exhibition..

EVENING TALKS

We have not managed to have evening talks. Some ideas were mooted during the Council Meetings but we fall short in implementing it due to business commitments of those entrusted to carry it out.

REGIONAL CENTRESPENANG REGIONAL CENTRE

PERC-MNCC Committee Meetings and Attendance

A total of 5 meetings have been held from June 2018 to date of this Report. This does not include informal discussions between Chairman and other committee members. Meetings are usually held on Saturday afternoons (from 2.30 pm):

Meetings are usually held at The 1926 Penang Heritage Hotel, Jalan Burmah; Hotel Jen, Jalan Magazine and other locations such as cafes as well.

PERC-MNCC ACTIVITIES FOR JUNE 2018 – JUNE 2019

Between the period June 2018 to June 2019, PERC implemented the following activities in line with objectives set out in the MNCC Regional Centre By Laws:

29th AGM of PERC-MNCC

The 29th AGM was held on 23rd June 2018 with 10 members attending, just enough for the required quorum. Mr Krishnan Somasundram, chaired the meeting which began at 1450 hrs as provided in Clause 22 of the Regional Centre By-Laws.

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Tea Talk on Block Chain Technology on 25th August 2018 at The 1926 Penang Heritage Hotel

The presentation was conducted by Mr Lance Lai and his partner from Thailand to PERC Committee members. Members gained knowledge and had a fruitful exchange of ideas. Before and after the presentation discussions were held with representatives of possible collaboration in the future through talks and other events.

Professional Visit to Hard Rock Hotel –

The Penang Regional Centre of The Malaysian National Computer Confederation (PERC-MNCC) successfully organised a professional visit to Hard Rock Hotel in Batu Ferringhi on 15th April 2019 between 9.00 am to 1.00 pm. There was a good response of 22 from Sentral College and RECSAM Penang and 5 PERC Committee members making a total of 27 participants. The visit was quite successful and refreshing. The feedback received from participants was good. The briefing was conducted by Dan Trumann, the IT Operations and Development Manager. There was a very lively interchange between participants and moderator during the presentation and Q&A session. Mr Tan Kwang Eu, a PERC Committee member lent a helping hand to clarify and elaborate on issues. At the end of the visit participants were treated to snacks and drinks.

State Relations - Penang Human Resource Development Council

PERC Chairman continues to be represented in the MMK Penang State Human Resources Development Council. PERC has been represented since 1991/1992. Chairman attended the meetings of the Penang State Human Resource Development Council (has been renamed Penang State Human Capital Development Council) since June 2018. Chairman attended the meetings of the Penang State Human Resource Development Council on Meeting No. 1 of 2018 on 2nd March 2018; Meeting No. 2 of 2018 on 14th August 2018 and Meeting No. 3 on 14th December 2018.

PERC Bits

PERC Bits is an online newsletter of PERC-MNCC sent to members to keep them updated of forthcoming events and reports of activities implemented and a forum for member interaction.

JOHORE/MELAKA REGIONAL CENTER (JOMERC)

As in previous years JOMERC is quite active in its activities involving seminars, visits and talks. However until the report is finalised details are not available after a number of efforts were made to contact them ended in failure.

NATIONAL RELATIONS

The Gabungan continues to maintain close liaison with the Government and participated actively in the dialogues and meetings held by Government departments and agencies on matters related to Information Technology.

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Gabungan representatives served in the following committees:

Jawatankuasa Pengiktirafan Kepakaran ICT Sektor Awam (JPA)

Panel Mengenai Industri Perisian Komputer, Kementerian Perdagangan Antarabangsa dan Industri (MITI)

Technical Working Group on ICT R & D and Human Resource for the 11 th Malaysia Plan.

NPC Consultative Panel on Information Technology

Training Committee for Industry and Service Sector – Information Communication Technology Cluster (ICT) under Pembangunan Sumber Manusia Berhad (PSMB) of the Ministry of Human Resource

Jawatankuasa Standards Industri bagi Teknologi Maklumat Telekomunikasi dan Multimedia - SIRIM

SIRIM Standards Technical Committee in Identification Cards and Related Devices – TC6

SIRIM’s Standard Technical Committee on Software Engineering

SIRIM’s Technical Committee ‘Information Security Standards’ BCPM Task Force under MCMM (KKMM) Member of IT Nexus Governing Committee under National Productivity Corporation

(NPC)

INTERNATIONAL RELATIONS

INTERNATIONAL FEDERATION FOR INFORMATION PROCESSING (IFIP))

Our affiliation with IFIP will be done through SEARCC thus we still can participate in its activites as SEARCC is a member of IFIP as we are no longer a direct member.

SOUTH EAST ASIA REGIONAL COMPUTER CONFEDERATION (SEARCC)

We remained active in SEARCC by attending all the Exco Meetings as follows:

6 April 2018 in Tokyo

AUSTRALIAN COMPUTER SOCIETY (ACS)

The Gabungan continues to maintain reciprocal relations with the Australian Computer Society.

SINGAPORE COMPUTER SOCIETY

The Gabungan continues to maintain reciprocal relations with the Singapore Computer Society.

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ACKNOWLEDGEMENT

On behalf of the Council, let me express my gratitude to the various government agencies, especially KKMM, MOSTI, MAMPU, MIMOS, EPU, MPC and other organizations for their continued support and cooperation. Our heartfelt appreciation are also due to members of the various committees for their numerous contributions and last but not least to the Gabungan’s Secretariat that functions as the nerve center for MNCC to continue to be relevant and being able to contribute in IT development for the benefit of its members in particular and to the country in general.

Prof. Dr. Ahmad Zaki Abu Bakar

President

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GABUNGAN KOMPUTER NASIONAL MALAYSIA (175039-M)(A Company Limited by Guarantee)

(Incorporated in Malaysia)

REPORT OF THE COUNCIL FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2018

The Council have pleasure in presenting their report together with the audited financial statements of the Gabungan for the financial year ended 31 December 2018.

PRINCIPAL ACTIVITY

The principal activity of the Gabungan is to promote the interests of the Information Technology profession.

FINANCIAL RESULTS RM

Operating deficit for the financial year (42,661)Add: Accumulated fund brought forward from the previous financial year 166,275Accumulated fund carried forward to next financial year 123,614

DIVIDENDS

In accordance with the Memorandum of Association of the Gabungan, no dividends are payable to members of the Gabungan.

RESERVES AND PROVISIONS

The Gabungan does not have any reserve account.

There were no material transfers to or from provisions during the financial year.

BAD AND DOUBTFUL DEBTS

Before the statement of income and expenditure and the statement of financial position of the Gabungan were made out, the Council took reasonable steps to ascertain that proper action had been taken in relation to the writing off of bad debts and had satisfied themselves that all known bad debts had been written off.

At the date of this report, the Council is not aware of any circumstances which would render the amount written off for bad debts inadequate to any substantial extent.

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CURRENT ASSETS

Before the statement of income and expenditure and the statement of financial position of the Gabungan were made out, the Council took reasonable steps to ensure that any current assets which were unlikely to be realised in the ordinary course of activities including their value as shown in the accounting records of the Gabungan have been written down to an amount which they might be expected so to realise.

At the date of this report, the Council is not aware of any circumstances that would render the values attributed to the current assets in the financial statements of the Gabungan misleading.

VALUATION METHODS

At the date of this report, the Council is not aware of any circumstances which have arisen which render adherence to the existing methods of valuation of assets or liabilities in the financial statements of the Gabungan misleading or inappropriate.

CONTINGENT AND OTHER LIABILITIES

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

(i) any charge on the assets of the Gabungan that has arisen since the end of the financial year which secures the liabilities of any other person, or

(ii) any contingent liability in respect of the Gabungan which has arisen since the end of the financial year.

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

CHANGE OF CIRCUMSTANCES

At the date of this report, the Council is not aware of any circumstances, not otherwise dealt with in this report or the financial statements of the Gabungan that would render any amount stated in the financial statements misleading.

ITEMS OF AN UNUSUAL NATURE

The results of the operation of the Gabungan for the financial year were not, in the opinion of the Council substantially affected by any item, transaction or event of a material and unusual nature. In the interval between the end of the financial year and the date of this report there has not arisen any transaction or event of a material and unusual nature likely, in the opinion of the Council members, to affect substantially the results of the operations of the Gabungan for the financial year in which this report is made.

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COUNCIL

The members who served in the Council since the date of the last report are: -

Prof. Dr. Ahmad Zaki Bin A Bakar (Retired and Re-appointed on 28 June 2018)Prof. Datuk Dr. Khairuddin Bin Ab. Hamid (Retired and Re-appointed on 28 June 2018)Lee Nan Phin (Retired and Re-appointed on 28 June 2018)Dr. Wong Kim Hoe (Retired and Re-appointed on 28 June 2018)Mohamad Nasruddin bin Mohamad Ariffin (Retired and Re-appointed on 28 June 2018)Lim Guat Meng, Oneil (Retired and Re-appointed on 28 June 2018)Kunaseelan A/L RajaretnamCharles Franklin Moreira @ CharleeYap Yoke WanDr. Teh Ying Wah In accordance with the Articles of Association of the Gabungan, the following Council members retire at the Annual General Meeting and they are eligible for re-election.

Kunaseelan A/L RajaretnamCharles Franklin Moreira @ CharleeYap Yoke WanDr. Teh Ying Wah

MANAGEMENT COMMITTEE

The members of the Council who served in the Management Committee since the date of the last report are:

Prof. Dr. Ahmad Zaki Bin A BakarProf. Datuk Dr. Khairuddin Bin Ab. HamidKunaseelan A/L RajaretnamLee Nan PhinYap Yoke Wan

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COUNCIL MEMBERS’ INTERESTS AND BENEFITS

The Gabungan is a company limited by guarantee and has no shares in which Council members could have an interest. Similarly, the Gabungan has not issued any debentures.

Since the end of the previous financial year, no member of the Council had been given any remuneration or other benefit in money or money’s worth except for reimbursements of travelling and subsistence allowances incurred when acting in an official capacity for and on behalf of the Gabungan.

No member of the Council of the Gabungan has received or become entitled to receive any benefit by reason of a contract made by the Gabungan with the Council member or with a firm of which the Council member is a member, or with a company in which the Council member has a substantial financial interest.

Neither during nor at the end of the financial year, the Gabungan was not a party to any arrangements whose object is to enable the Council members to acquire benefits by means of the acquisition of shares or the debentures of the Gabungan or anybody corporate.

AUDITORS

The retiring auditors, Messrs RSM Malaysia., have expressed their willingness to accept re-appointment.

On behalf of the Council

KUNASEELAN A/L RAJARETNAMCouncil Member

DR. TEH YING WAHCouncil Member

Kuala Lumpur

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GABUNGAN KOMPUTER NASIONAL MALAYSIA(A Company Limited by Guarantee)


BALANCE SHEET AS AT 31ST DECEMBER 2018

Note2018RM

2017RM

NON-CURRENT ASSETS 6 429 516

CURRENT ASSETS

Subscription in arrears 8,180 9,792

Other receivables, deposits 7 6,205 170,667Fixed deposits with a licensed bank 8 80,242Cash and bank balances 33,639 21,398

128,266 201,857TOTAL ASSETS 128,695 202,373

EQUITY

Accumulated Fund 9 123,614 166,275

TOTAL EQUITY 123,614 166,275

CURRENT LIABILITIESSubscription in advance 70 20Accruals 5,011 36,078

TOTAL LIABILITIES 5,081 36,098

TOTAL EQUITY AND LIABILITIES 128,695 202,373

The annexed notes form an integral part of the financial statements.

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GABUNGAN KOMPUTER NASIONAL MALAYSIA(A Company Limited by Guarantee)


STATEMENT OF INCOME AND EXPENDITUREFOR THE FINANCIAL YEAR ENDED 31ST DECEMBER, 2018

Note2018RM

2017RM

INCOME

Conference and seminars 10 - 14,580Entrance fees 210 160Interest on Fixed deposits 242 -Life members 922 1,000Other income 195 166,262Subscriptions 8,171 8,414

9,740 190,416

EXPENDITURE

Administration expenses 11 37,001 37,722Audit fee 3,000 3,000Depreciation of property, plant and equipment 87 380International relations 12 - 12,108Meeting Expenses 6,073 964Subscription written off 6,240 240

52,401 54,414

OPERATING (DEFICIT)/SURPLUS BEFORE TAXATION 13 (42,661) 136,002

TAXATION 14 - -

OPERATING DEFICIT/SURPLUS FOR THEFINANCIAL YEAR (42,661) 136,002


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STATEMENT OF CASH FLOWSFOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018

2018RM

2017RM

CASH FLOWS FROM OPERATING ACTIVITIES

Operating (deficit)/Surplus before taxation (42,661) 136,002Adjustments for :- Depreciation of property, plant and equipment 87 380Subscription written off 6,240 240Interest income (242) -Operating (deficit)/surplus before working capital changes (36,576) 136,622

Increase in subscriptions in arrears (4,628) (3,918)Decrease/(Increase) in other receivables, deposits and prepayments 164,462 (166,262)Increase/(Decrease) in subscriptions in advance 50 (50)Increase/(Decrease) in accruals (31,067) 30,378Net cash generated from/(used in) operating activities 92,241 (3,230)

CASH FLOWS FROM INVESTING ACTIVITY

Interest received 242 -

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENT 92,483 (3,230)CASH AND CASH EQUIVALENTS BROUGHT FORWARD 21,398 24,628

CASH AND CASH EQUIVALENTS CARRIED FORWARD 113,881 21,398

NOTES TO THE STATEMENT OF CASH FLOWSCash and cash equivalent at the end of the financial year comprise:Cash and bank balances 33,639 21,398Fixed deposits with a licensed bank 80,242 - 113,881 21,398


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NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER, 2018

1. GENERAL INFORMATION

(a) The Gabungan is a company limited by guarantee, incorporated and domiciled in Malaysia.

(b) The registered office and principal place of activity are situated at Unit 916, 9th Floor, Block A, Damansara Intan, No. 1, Jalan SS 20/27, 47400 Petaling Jaya, Selangor.

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

2. PRINCIPAL ACTIVITY

The principal activity of the Gabungan is to promote the interests of the Information Technology profession.

3. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Gabungan has been prepared in accordance with the applicable approved Malaysian Financial Reporting Standard (“MFRSs”) issued by the Malaysian Accounting Standards Board (“MASB”), International Financial Reporting Standard (“IFRSs”) and the requirements of the Companies Act 2016 in Malaysia.

4. SIGNIFICANT ACCOUNTING POLICIES

4.1 Basis of accounting

The financial statements of the Gabungan have been prepared under the historical cost convention except as otherwise stated in the financial statements.

The preparation of financial statements requires the Council to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue and expenses and disclosure of contingent assets and liabilities. In addition, the Council are also required to exercise their judgement in the process of applying the accounting policies. Although these estimates and assumptions are based on the Councils’ best knowledge of events and actions, actual results could differ from those estimates.

4.2 Property, plant and equipment

On initial recognition, items of property, plant and equipment are recognised at cost, which includes the purchase price as well as any costs directly attributable in bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, and the cost of dismantling and removing the items and restoring the site on which they are located.

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Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

After initial recognition, items of property, plant and equipment are carried at cost less any accumulated depreciation and any accumulated impairment losses.

When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Gabungan, and its cost can be measured reliably. The carrying amount of the replaced component is derecognised to profit or loss. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.

Significant components of individual assets are assessed, and if a component has a useful life that is different from the remainder of that asset, then that component is depreciated separately.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over its principal depreciation rate as follows:

Furniture and fittings 10%Office equipment 20%

Useful lives, residual values and depreciation methods are reviewed, and adjusted if appropriate, at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

4.3 Impairment of non-financial assets

The carrying amounts of such assets are reviewed at each reporting date for indications of impairment and where an asset is impaired, it is written down as an expense through profit or loss to its estimated recoverable amount. Recoverable amount is the higher of value in use and the fair value less costs to sell of the individual asset or the cash-generating unit. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. If this is the case, recoverable amount is determined for the cash-generating unit to which the asset belongs.

Value in use is the present value of the estimated future cash flows of that unit. Present values are computed using pre-tax discount rates that reflect the time value of money and the risks specific to the unit which impairment is being

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measured.

Impairment losses for cash-generating units are allocated first against the goodwill of the unit and then pro rata amongst the other assets of the unit.

Subsequent increases in the recoverable amount caused by changes in estimates are credited to profit or loss to the extent that they reverse the impairment.

4.4 Financial instruments

(A) Initial recognition and measurement

The Company recognise a financial asset or a financial liability in the statement of financial position when, and only when, the Company become a party to the contractual provisions of the instruments.

On initial recognition, all financial assets and financial liabilities are measured at fair value plus transaction costs if the financial asset or financial liability is not measured at fair value through profit or loss. For instruments measured at fair value through profit or loss, transaction costs are expensed to profit or loss when incurred.

(B) Derecognition of financial instruments

For derecognition purposes, the Company first determines whether a financial asset or a financial liability should be derecognised in its entirety as a single item or derecognised part-by-part of a single item or of a group of similar items.

A financial assets, whether as a single item or as a part, is derecognised when, and only when, the contractual rights to receive the cash flows from the financial asset expire, or when the Company transfers the contractual rights to receive cash flows of the financial asset, including circumstances when the Company acts only as a collecting agent of the transferee, and retain no significant risks and rewards of ownership of the financial asset or no continuing involvement in the control of the financial asset transferred.

A financial liability is derecognised when, and only when, it is legally extinguished, which is either when the obligation specified in the contract is discharged or cancelled or expires. A substantial modification of the terms of an existing financial liability is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. For this purpose, the Company considers a modification as substantial if the present value of the revised cash flows of the modified terms discounted at the original effective interest rate is different by 10% or more when compared with the carrying amount of the original liability.

(C) Regular-way purchases and sales of financial assets

The Company recognises a regular-way purchase or sale of a quoted equity or debt instrument at trade date, which is the date the purchase or sale

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transaction is entered into, rather than recognising the forward contract between trade date and settlement date.

(D) Financial assets

For the purpose of subsequent measurement, the Company classifies financial assets into three measurement categories, namely: (i) financial assets at amortised cost (“AC”); (ii) financial assets at fair value through other comprehensive income (“FVOCI”) and (iii) financial assets at fair value through profit or loss (“FVPL”). The classification is based on the Company’s business model objective for managing the financial assets and the contractual cash flow characteristics of the financial instruments.

After initial recognition, the Company measures financial assets, as follow:

(i) Financial assets at ACA financial asset is measured at amortised cost if: (a) it is held within the Company’s business objective to hold the asset only to collect contractual cash flows, and (b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest in principal outstanding.

(ii) Financial assets at FVOCIA financial asset is measured at FVOCI if: (a) it is held within the Company’s business objective to hold the asset both to collect contractual cash flows and selling the financial asset, and (b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest in principal outstanding.

(iii) Financial assets at FVPLA financial asset is measured at FVPL if it is an equity investment, held for trading (including derivative assets) or if it does not meet any of the condition specified for the AC or FVOCI model.

Other that financial assets measured at fair value through profit or loss, all other financial assets are subject to review for impairment in accordance with Note 4.4 (h).

(E) Financial liabilities

After initial recognition, the Company measures all financial liabilities at amortised cost using the effective interest method, except for:

(i) Financial liabilities at fair value through profit or loss (including derivatives that are liabilities) are measured at fair value.

(ii) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies. Paragraph 3.2.15 and 3.2.17 of MFRS 9 apply to the measurement of such financial liabilities.

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4. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4.4 Financial instruments (continued)

(e) Financial liabilities (continued)

(iii) Financial guarantee contracts issued, and commitments to provide loans at a below-market interest rate given, by the Company is measured at the higher of: (a) the amount of impairment loss determined and (b) the amount initially recognised less, when appropriate, the cumulative of income recognised in accordance with the principles in MFRS 15 Revenue from Contracts with Customers.

(f) Fair value measurement

The fair value of a financial asset or a financial liability is determined by reference to the quoted market price in an active market, and in the absence of an observable market price, by a valuation technique as described in Note 4.8.

(g) Recognition of gains and losses

Fair value changes of financial assets and financial liabilities classified as at fair value through profit or loss are recognised in profit or loss when they arise.

For financial assets mandatorily measured at FVOCI, interest income (calculated using the effective interest rate method), impairment losses, and exchange gains or loss are recognised in profit or loss. All other gains or losses are recognised in other comprehensive income and retained in a fair value reserve. On derecognition of the financial assets, the cumulative gain or loss recognised in OCI is reclassified to profit or loss as a reclassification adjustment.

For financial assets and financial liabilities carried at amortised cost, interest income and interest expense are recognised in profit or loss using the effective interest method. A gain or loss is recognised in profit or loss only when the financial asset or financial liability is derecognised or impaired, and through the amortisation process of the instrument.

(h) Impairment of financial assets

The Company applies the expected credit loss model of MFRS 9 to recognise impairment losses of financial assets measured at amortised cost or at fair value through other comprehensive income. Except for trade receivables, a 12-month expected credit loss is recognised in profit or loss on the date of origination or purchase of the financial assets. At the end of each reporting period, the Company assess whether there has been a significant increase in credit risk of a financial asset since its initial recognition or at the end of the prior period. Other than for financial assets

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which are considered to be of low risk grade, a lifetime expected credit loss is recognised if there has been a significant increase in credit risk since initial recognition. For trade receivables, the Company has availed the exception to the 12-month ECL requirement to recognise only lifetime expected credit losses.

The assessment of whether credit risk has increased significantly is based on quantitative and qualitative information that include financial evaluation of the creditworthiness of the debtors or issuers of the instruments, ageing of receivables, defaults and past due amounts, past experiences with the debtors, current conditions and reasonable forecast of future economic conditions. For operational simplifications: (a) a 12-month expected credit loss is maintained for financial assets which investment grades that are considered as low credit risk, irrespective of whether credit risk has increased significantly or not; and (b) credit risk is considered to have increase significantly if payments are more than 30 days past due if no other borrower-specific information is available without undue cost or effort.

The expected credit loss (ECL) is measured using an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes, discounted for the time value of money and applying reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions, and forecast of future economic conditions. The ECL for a financial asset (when assessed individually) or a group of financial assets (when assessed collectively) is measured at the present value of the probability-weighted expected cash shortfalls over life of the financial asset or group of financial assets. When a financial asset is determined as credit-impaired (based on objective evidence of impairment), the lifetime ECL is determined individually.

For trade receivable, the lifetime ECL is determined at the end of each reporting period using a provision matrix. For each significant receivable, individual lifetime ECL is assessed separately. For significant receivables which are not impaired and for all other receivables, they are grouped into risk classes by type of customers and businesses, and the ageing of the receivables. Collective lifetime ECLs are determined using past loss rates, which are updated for effects of current conditions and reasonable forecasts for future economic conditions. In the event that the economic or industry outlook is expected to worsen, the past loss rates are increased to reflect the worsening economic conditions.

4.5 Income recognition

Income is recognised on the accrual basis.

4.6 Income taxes

Tax currently payable is calculated using the tax rates in force or substantively enacted at the reporting date. Taxable profit differs from accounting profit either because some income and expenses are never taxable or deductible, or because the time pattern that they are taxable or deductible differs between tax law and

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their accounting treatment.

Using the statement of financial position liability method, deferred tax is recognised in respect of all temporary differences between the carrying value of assets and liabilities in the statement of financial position and the corresponding tax base, with the exception of goodwill not deductible for tax purposes and temporary differences arising on initial recognition of assets and liabilities that do not affect taxable or accounting profit.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the reporting date.

Deferred tax assets are recognised only to the extent that the Gabungan considers that it is probable (i.e. more likely than not) that there will be sufficient taxable profits available for the asset to be utilised within the same tax jurisdiction.

Deferred tax assets and liabilities are offset only when there is a legally enforceable right to offset current tax assets against current tax liabilities, they relate to the same tax authority and the Gabungan’s intention is to settle the amounts on a net basis.

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except if it arises from transactions or events that are recognised in other comprehensive income or directly in equity. In this case, the tax is recognised in other comprehensive income or directly in equity, respectively.

4.7 Statement of cash flows

The Gabungan adopts the indirect method in the preparation of the statement of cash flows.

Cash and cash equivalents include cash and bank balances and deposits which have a short maturity (three months or lesser) that are readily convertible to cash and are subject to insignificant risk of changes in value.

4.8 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When measuring the fair value of an asset or a liability, the Gabungan uses market observable data to the extent possible. If the fair value of an asset or a liability is not directly observable, it is estimated by the Gabungan (working closely with external qualified valuers) using valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs (e.g. by use of the market comparable approach that reflects recent transaction prices for similar items, discounted cash flow analysis, or option pricing models refined to reflect the issuer’s specific circumstances). Inputs used are consistent with the characteristics of the asset/liability that market participants would take into account.

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Fair values are categorised into different levels in a fair value hierarchy based on the degree to which the inputs to the measurement are observable and the significance of the inputs to the fair value measurement in its entirety: Level 1 fair value measurements are those derived from quoted prices

(unadjusted) in active markets for identical assets or liabilities. Level 2 fair value measurements are those derived from inputs other than

quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Transfers between levels of the fair value hierarchy are recognised by the Gabungan at the end of the reporting period during which the change occurred.

5. ADOPTION OF MFRSs, AMENDMENTS TO MFRSs AND INTERPRETATIONS

5.1 MFRSs, Amendments to MFRSs and Interpretations adopted

For the preparation of the financial statements, the following accounting standards, amendments and interpretations of the MFRS framework issued by the MASB are mandatory for the first time for the financial periods beginning on or after 1 January 2018:

MFRS 9 Financial Instruments (2014) MFRS 15 Revenue from Contracts with Customers Amendments to MFRS 15 – Clarifications to MFRS 15 Amendments to MFRS 2 Share-based Payment – Classification and Measurement

of Share-based Payment Transactions Amendments to MFRS 1 First-time Adoption of Malaysian Financial Reporting

Standards (Annual Improvements 2014-2016 Cycle) Amendments to MFRS 128 Investments in Associates and Joint Ventures (Annual

Improvements 2014-2016 Cycle) Amendments to MFRS 140 Investment Property – Transfers of Investment

Property IC Interpretation 22 Foreign Currency Transactions and Advance Consideration

The adoption of the above-mentioned accounting standards, amendments and interpretations have no significant impact on the financial statements of the Company.

(a) MFRS 9 Financial Instruments (2014)

For the purpose of subsequent measurement, the Company classifies financial assets into three measurement categories, namely: (i) financial assets at amortised cost; (ii) financial assets at fair value through other comprehensive income;

and(iii) financial assets fair value through profit or loss.

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The classification is based on the Company’s business model objective for managing the financial assets and the contractual cash flow characteristics of the financial instruments.

After initial recognition, the Company measures financial assets, as follows:

(i) Financial assets at ACA financial asset is measured at amortised cost if: (a) it is held within the Company’s business objective to hold the asset only to collect contractual cash flows, and (b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest in principal outstanding.

(ii) Financial assets at FVOCIA financial asset is measured at FVOCI if: (a) it is held within the Company’s business objective to hold the asset both to collect contractual cash flows and selling the financial asset, and (b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest in principal outstanding.

(iii) Financial assets at FVPLA financial assets is measured at FVPL if it is an equity investment, held for trading (including derivative assets) or if it does not meet any of the condition specified for the AC or FVOCI model.

MFRS 9 also introduces a new impairment methodology for financial assets, lease receivables and contract assets subject to impairment requirements and a new hedged accounting model. It uses a single forward-looking expected credit loss model that requires a 12-month expected credit loss be provided on initial recognition of a financial instrument, and if, and only if, there has been a significant deterioration in the credit risk after initial recognition, a lifetime expected credit loss shall be recognised. Also, the new hedge accounting model has been aligned to an entity’s business model for managing financial risk, with eligible qualifying hedged items being extended to cover hedges of non-financial items.

The date of initial application of MFRS 9 is 1 January 2018. The effects of the adoption are discussed below:

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Changes in measurement categories

The original measurement categories of the Company’s financial assets and financial liabilities have been changed to conform with the new measurement categories, as follows:

Original measurement category in MFRS 139

New measurement category in MFRS 9

Financial AssetsSubscriptions in arrears Loans and receivables Financial assets at ACOther receivable and

deposits Loans and receivables Financial assets at AC

5.1 MFRSs, Amendments to MFRSs and Interpretations adopted (continued)

Classification basis and reasons

The classifications of loans and receivables under MFRS 139 has been changed to financial assets measured at amortised cost model because MFRS 9 no longer has the former measurement categories. The measurement basis for such instruments at amortised cost effective interest method is retained because the Company’s business model objective for such financial assets is to collect contractual cash flows of interest and principal and the instruments have these contractual cash flow characteristics.

For financial liabilities, the Company did not change the measurement categories because the requirements in MFRS are substantially similar to those in the former MFRS 139.

(b) MFRS 15 Revenue from Contracts with Customers

The core principle of this new MFRS is that an entity shall recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognises revenue in accordance with the core principle by applying the following steps:

(i) identifying the contract with a customer;(ii) identifying the performance obligations in the contract;(iii) determining the transaction price;(iv) allocating the transaction price to the separate performance obligations

in the contract; and(v) recognising revenue when (or as) the entity satisfies a performance

obligation.

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For a contract with a customer that has multiple elements, MFRS 15 requires that the contract shall be identified into separate performance obligations if they are individually distinct. The transaction price (i.e. the consideration receivable) in the contract shall be allocated to the performance obligations on the relative standalone selling price method. If the consideration receivable is variable, a probability weighted estimated or the most likely outcome is applied in the measurement of revenue, depending on which is the more appropriate basis under the particular circumstances. Revenue for a performance obligation is recognised in profit or loss when, or as, the entity transfers control of an asset (i.e. the good or service), to the customer. MFRS 15 also includes new disclosures that would result in an entity providing users of financial statements about the nature, timing and uncertainty of revenue and cash flows from contracts with customers.

The amendments to MFRS 15 are to clarify certain aspects of MFRS 15 to make them easier for reporting entities to apply the requirements of the new Revenue Standard. In assessing whether an entity’s promises to transfer goods or services to the customer are separately identifiable, the objective is to determine whether the nature of the promise, within the context of the contract, is to transfer each of those goods or services individually or, instead, to transfer a combined item or items to which the promised goods or services are inputs.

(c) Other new and revised MFRSs

The adoption of the other new and revised accounting standards, amendments and interpretations have no significant impact on the financial statements of the Company.

5.2 New/Revised MFRSs, Amendments to MFRSs and Interpretations not adopted

The following are accounting standards, amendments and interpretations of the MFRS framework that have been issued by the MASB but have not been adopted by the Company:

MFRSs, Amendments to MFRSs and Interpretations effective for annual periods beginning on or after 1 January 2019 MFRS 16 Leases IC Interpretation 23 Uncertainty over Income Tax Treatments Amendments to MFRS 9 Financial Instruments (2014) – Prepayment Features

with Negative Compensation Amendments to MFRS 128 Investments in Associates and Joint Venture -

Long Term interest in Associates and Joint Ventures Amendments to MFRS 3 Business Combinations – Previously Held Interest in

a Joint Operation (Annual Improvements 2015-2017 Cycle) Amendments to MFRS 11 Joint Arrangements - Previously Held Interest in a

Joint Operation (Annual Improvements 2015-2017 Cycle) Amendments to MFRS 112 Income Taxes – Income Tax Consequences of

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Payments on Financial Instruments Classified as Equity (Annual Improvements 2015-2017 Cycle)

Amendments to MFRS 123 Borrowing Costs – Borrowing Costs Eligible for Capitalisation (Annual Improvements 2015-2017 Cycle)

Amendments to MFRS 119 Employee Benefits - Plan Amendment, Curtailment or Settlement

MFRSs, Amendments to MFRSs and Interpretations effective for annual periods beginning on or after 1 January 2020

Amendments to References to the Conceptual Framework in MFRS Standards Amendments to MFRS 3 Business Combination – Definition of a Business Amendments to MFRS 101 Presentation of Financial Statements and MFRS

108 Accounting Policies, Changes in Accounting Estimates and Errors – Definition of Material

5.2 New/Revised MFRSs, Amendments to MFRSs and Interpretations not adopted (continued)

MFRSs, Amendments to MFRSs and Interpretations which effective date yet to be confirmed

Amendments to MFRS 10 Consolidated Financial Statements and MFRS 128 Investment in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

The directors anticipate that the above-mentioned accounting standards, amendments and interpretation will be adopted by the Company when they become effective.

Amendments to MFRS 4 Insurance Contracts – Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts and MFRS 17 Insurance Contracts have not been taken into consideration because they are not applicable to the Company.

The Company has assessed, where practicable, the potential impact of all these accounting standards, amendments and interpretations that will be effective in future period, as below:

MFRS 16 Leases

MFRS 16 introduces a single accounting model for a lessee and eliminates the distinction between finance lease and operating lease. Lessee is now required to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Upon adoption of MFRS 16, the Company are required to account for major part of its operating leases in the statement of financial position by recognising the ‘right-of-use’ assets and the lease liability, thus increasing the assets and liabilities of the Company.

The financial effects arising from the adoption of this standard are still being assessed by the Company.

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6. PROPERTY, PLANT AND EQUIPMENT

Furniture and fittings

Office equipment Total

RM RM RM

CostAs at 1.1.2017/31.12.2017/1.1.2018/31.12.2018 45,290 16,208 61,498

Accumulated depreciationAs at 1.1.2017 44,698 15,904 60,602Depreciation charge 86 294 380As at 31.12.2017/1.1.2018 44,784 16,198 60,982Depreciation charge 87 - 87As at 31.12.2018 44,871 16,198 61,069

Net carrying value

As at 31.12.2017 506 10 516

As at 31.12.2018 419 10 429

7. OTHER RECEIVABLE, DEPOSITS AND PREPAYMENTS

2018 2017RM RM

Other receivable - 166,262Deposits 4,405 4,405Prepayments 1,800 -

6,205 170,667

8. FIXED DEPOSITS WITH A LICENSED BANK

The fixed deposits with a licensed bank have a maturity period of 3 months (2017: NIL). The effective interest rates of fixed deposits is 3.20% (2017: NIL) per annum.

9. ACCUMULATED FUND

2018 2017RM RM

Balance as at 1 January 166,275 30,273Operating (deficit)/surplus for the financial year (42,661) 136,002Balance as at 31 December 123,614 166,275

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10. CONFERENCES AND SEMINARS2018 2017RM RM

Seminars and workshops - 14,580

11. ADMINISTRATIVE EXPENSES

2018 2017RM RM

Bank charges 140 102Computer expenses 1,579 1,200Electricity and water 2,785 3,366Filing and attestation fees 565 224Indah Water 357 369Office maintenance 1,460 1,377Office rental 11,400 11,500Postage and courier service 738 776Printing and stationery 1,825 2,056Professional services 12,695 13,090GST charge 222 308Taxation services 1,200 1,200Telecommunication 880 928Travelling expenses 1,155 1,226

37,001 37,722

12. INTERNATIONAL RELATIONS

2018 2017RM RM

Annual subscription to SEARCC - 12,108

13. OPERATING (DEFICIT)/SURPLUS BEFORE TAXATION

Operating (deficit)/surplus before taxation is arrived at after charging/(crediting):-

2018 2017RM RM

Auditors’ remuneration 3,000 3,000Depreciation of property, plant and equipment 87 380Office rental 11,400 11,500Subscriptions written off 6,240 240

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Interest income (242) -Other income (195) (166,262)

14. TAXATION

A reconciliation of income tax expense on operating (deficit)/surplus before taxation with the applicable statutory income tax rate is as follows:

2018 2017RM RM

Operating (deficit)/surplus before taxation (42,661) 136,002

Income tax for:

First (RM35,000) (2017: RM100,000) (600) 11,900Next (RM7,661) (2017: RM36,002) (613) 8,640

(1,213) 20,540Tax effects of:

Non allowable expenses 946 1,496Temporary differences on property, plant and equipment not recognised (4) 62

Unabsorbed capital allowance not recognised 11 -Unabsorbed tax losses not recognised 2,460 -Utilisation of deferred tax assets previously not recognised - (34,198)Effect of the income taxed at different statutory tax rate (2,200) 12,100Tax expense for the financial year - -

As at 31 December 2018, the Gabungan has the following temporary differences which are not recognised in the financial statements because it is not probable that future taxable income will be available to allow the temporary differences to be utilised:

2018 2017RM RM

Excess of net carrying value over tax written down value of property, plant and equipment (224) (171)

Unabsorbed capital allowances 140 -Unabsorbed tax losses 486,978 456,222

486,894 456,051

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15. FINANCIAL INSTRUMENTS

(a) Financial Risk Management Objectives and Policies

The Gabungan’s financial risk management policy seeks to ensure that adequate financial resources are appropriately used for development of the Gabungan’s activities whilst managing its interest rate, liquidity and credit risks. The Gabungan operates within clearly defined guidelines that are approved by the Council. The Gabungan is not exposed to foreign currency risk as the majority of the Gabungan’s transactions, assets and liabilities are denominated in Ringgit Malaysia.

(b) Credit Risk

The Gabungan does not have any significant exposure or any major concentration of credit risk related to any financial instruments.

(c) Liquidity Risk

In the management of liquidity risk, the Gabungan monitors and maintains a level of cash and bank balances deemed adequate by the management to finance the Gabungan’s operations and mitigate the effects of fluctuation in cash flow.

(d) Fair Values of Financial Instruments

The carrying values of the financial assets and liabilities of the Gabungan as at the reporting date approximately their fair values.

16. AUTHORISATION FOR ISSUE OF FINANCIAL STATEMENTS

The financial statements were authorised for issue by the Council in accordance with a resolution by the Council Members on 13 June 2019.

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STATEMENT BY COUNCIL MEMBERSPursuant to Section 251(2) of the Companies Act 2016

We, the undersigned, being two of the Council Members of GABUNGAN KOMPUTER NASIONAL MALAYSIA (175039-M) do hereby state that, in the opinion of the Council Members, the financial statements set out on pages 15 to 33 are drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and requirements of the Companies Act 2016 in Malaysia so as to give a true and fair view of the state of affairs of Gabungan Komputer Nasional Malaysia as at 31 December, 2017 and of the financial results and the cash flows of the Gabungan for the financial year ended on that date.

On behalf of the Council

KUNASEELAN A/L RAJARETNAM

DR. TEH YING WAH

Petaling Jaya,7 June 2018

STATUTORY DECLARATIONPursuant to Section 251(1)(b) of the Companies Act 2016

I, SYED MOHAMED BIN SYED HUSSIN, being the officer primarily responsible for the financial management of GABUNGAN KOMPUTER NASIONAL MALAYSIA (175039-M), do solemnly and sincerely declare that the financial statements set out on pages 16 to 34 are to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act 1960.

SYED MOHAMED SYED HUSSIN

Subscribed and solemnly declared by the abovenamed at Petaling Jaya in the State of Selangor Darul Ehsan on 7 June 2018

Before me :

WONG CHOY YINCommissioner of OathsNo. 34A (Tkt 1)Jalan SS 2/67

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47400 Petaling Jaya, Selangor Darul Ehsan

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OFGABUNGAN KOMPUTER NASIONAL MALAYSIA (175039-M)(A Company Limited by Guarantee)

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Gabungan Komputer Nasional Malaysia, which comprise the statement of financial position as at 31 December 2018, and the statement of income and expenditure and statement of cash flows for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 15 to 33.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Gabungan as at 31 December 2018, and of its financial performance and its cash flows for the financial year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.

Basis for Opinion

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

Independence and Other Ethical Responsibilities

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

Information Other than the Financial Statements and Auditors’ Report Thereon

The Council Members of the Gabungan are responsible for the other information. The other information comprises the Report of the Council, but does not include the financial statements of the Gabungan and our auditors’ report thereon.

Our opinion on the financial statements of the Gabungan does not cover the Report of the Council and we do not express any form of assurance conclusion thereon.

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

35


INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OFGABUNGAN KOMPUTER NASIONAL MALAYSIA (175039-M) (CONTINUED)(A Company Limited by Guarantee)(Incorporated in Malaysia)

If based on the work we have performed, we conclude that there is a material misstatement of the Report of the Council, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Council Members for the Financial Statements

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

In preparing the financial statements of the Gabungan, the Council Members are responsible for assessing the Gabungan’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the council members either intend to liquidate the Gabungan or to cease operations, or have no realistic alternative but to do so.

Auditors’ Responsibilities for the Audit of the Financial Statements

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

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

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

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

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

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OFGABUNGAN KOMPUTER NASIONAL MALAYSIA (175039-M) (CONTINUED)(A Company Limited by Guarantee)(Incorporated in Malaysia)

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

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

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

Other Matters

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

RSM MalaysiaFirm number: AF: 0768Chartered Accountants

YONG KAM FEI 2562/07/16(J)Chartered Accountant

Kuala Lumpur13 June 2019

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GABUNGAN KOMPUTER NASIONAL MALAYSIA (175039-M)(Incorporated in Malaysia)

Company Limited By Guarantee

FORM OF PROXY

I, ……………………………………………… (Membership No : …………………..) (Full Name in Block Capitals)

of ……………………………………………………………………………………….

being a member of the Gabungan Komputer Nasional Malaysia hereby appoint

………………………………………………… (NRIC : ……………………………. )

………………………………………………………………………………………….

as my proxy to attend on my behalf the Thirtieth Annual General Meeting of the Gabungan Komputer Nasional Malaysia to be held on Thursday 27 June, 2019 at 6.30 p.m. at the MNCC Office, Unit 916, 9th Floor, Block A, Damansara Intan, No. 1 Jalan SS 20/27, 47400 Petaling Jaya, Selangor Darul Ehsan and at any adjournment thereof.

Signature of member : …………………………………..

Dated this …………………….. day of …………… 2019

NOTES :

1 Appointment of a proxy must comply with Section 149(1) of the Companies Act 1965.

2 The instrument appointing a proxy shall be in writing under the hand of the member or his attorney duly authorised in writing.

3 The instrument appointing the proxy must be deposited at the Registered Office of the Gabungan at Unit 916, 9th Floor, Block A Damansara Intan, No. 1 Jalan SS 20/27, 47400 Petaling Jaya not less than 24 hours before the time set for holding the meeting.

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