Sealink International Berhad i Annual Report 2018sealink.listedcompany.com/newsroom/SEALINK... · 226309-A Godrimaju 535404-U 100% Seabright Sdn. Bhd. 30204-K 100% Sealink Pacific

Sealink International BerhadAnnual Report 2018 (800981-X) i

The Sealink Group

We are a Ship Owner / Charterer, Shipbuilder and

Ship Repairer.

Sealink Group builds, owns and operates a diverse fleet of marine

support vessels, include serving the global

exploration and marine industry.

Our products and services are geographically spread

to over 20 countries across the world.

We are listed on the Main Market of Bursa Malaysia.

SEALINK INTERNATIONAL BERHADSEALINK INTERNATIONAL BERHAD(800981-X)

Our Vision• ALeadingIntegratedService

ProviderfortheMarineIndustry

Our Mission• ConstructingHighPerformance

WorldClassVessels• Establishing,Preservingand

IntegratingaNetworkofGlobalCustomers

• ContinuouslyAchieving InternationalAccreditation inMaritimeSafetyStandards• ContinuouslyImproving

ManagementandOperationalEfficiencyandOptimizationofSystems

• ZeroAccidentsandZeroPollution• ContinuouslyImprovingin

Health,Safety,Security,QualityManagementandCorporateSocialResponsibility

Our Goals• SatisfyingOurCustomers• ImprovingandSustainingOur

BusinessGrowthandMarketShare

• BuildingaStrongandMotivatedWorkforce

Our Values• QualityandExcellence• Integrity• CustomersandEmployees areOurCompany’sAssets• InternationallyCompetitive• EnvironmentalFriendly• SocialConsciousness• FlexibilityinBusinessOperations

Vision, Mission and Philosophy 1 Corporate Information 2 Group Structure 3 Notice of Annual General Meeting 4 - 6 Profile of Directors 7 - 9 Profile of Key Senior Management 10 Chief Executive Officer’s Message 11 - 15 and Management Discussion & Analysis Audit Committee Report 16 - 17 Statement on Risk Management 18 - 21 and Internal Control Corporate Governance 22 - 32 Overview Statement Sustainability Statement 33 - 35 Directors’ Responsibility Statement 36 for the Audited Financial Statement Financial Statements 37 - 107 Landed Properties 108 - 109 Analysis of Shareholdings 110 - 111 Form of Proxy Details of the Group –Places of Operations/Offices

Contents

Sealink International BerhadAnnual Report 20182 (800981-X)

Board Of Directors

Yong Foh Choi (Retiredon22May2018)Former Managing DirectorFormer Non-Independent Executive Director

Yong Kiam Sam Chief Executive Officer cum Managing Director Non-Independent Executive Director Eric Khoo Chuan Syn @ Khoo Chuan Syn Independent-Non Executive Director Datuk Sebastian Ting Chiew Yew Independent-Non Executive Director Toh Kian Sing Independent-Non Executive Director Wong Chie Bin Independent-Non Executive Director

Audit Committee

ChairmanWong Chie BinMembers Datuk Sebastian Ting Chiew Yew Toh Kian Sing Eric Khoo Chuan Syn @ Khoo Chuan Syn

Nominating Commitee

ChairmanEric Khoo Chuan Syn @ Khoo Chuan SynMembers Datuk Sebastian Ting Chiew Yew Toh Kian Sing Wong Chie Bin

Remuneration Committee

ChairmanToh Kian SingMembers Datuk Sebastian Ting Chiew Yew Eric Khoo Chuan Syn @ Khoo Chuan Syn Wong Chie Bin

Risk Management Committee

ChairmanYong Kiam SamMembers Datuk Sebastian Ting Chiew Yew Eric Khoo Chuan Syn @ Khoo Chuan Syn Wong Chie Bin Toh Kian Sing

Company Secretary

Yeo Puay Huang(LS0000577)

Registered Office and Corporate Office

Lot1035,Block4,MCLDPiasauIndustrialArea,98000Miri,SarawakTel:085-651778Fax:085-652480Email:[email protected]:www.asiasealink.com

Registrar

Securities Services (Holdings) Sdn Bhd(36869-T)Level7,MenaraMilenium,JalanDamanlelaPusatBandarDamansara,DamansaraHeights50490KualaLumpur,WilayahPersekutuanTel:03-20849000Fax:03-20949940

Auditors

Ernst & Young(AF:0039)4thFloor,Unit4.1,Lot698WismaYongLungPelitaCommercialCentre98000Miri,SarawakTel:085-423881Fax:085-413921

Principal Bankers

HongLeongBankBerhadAmBank(M)BerhadCIMBBankBerhadStandardCharteredSaadiqBerhadMalayanBankingBerhadDBSBankLtd

Stock Exchange Listings

Listed on Main Market of Bursa Malaysia Securities Berhad on 29 July 2008

Stock Code

5145

Stock Name

SEALINK

CorporateInformation

3Sealink International BerhadAnnual Report 2018 (800981-X)

GroupStructure

Chartering Shipbuilding and Repair

SealinkOffshore (L) LtdLL06872

100%

Cergas MajusamaSdn. Bhd.

635714-U

100%

SealinkManagement

Sdn. Bhd.250551-H

100%

Era SurewaySdn. Bhd.

687555-V

45%

Era SurplusSdn. Bhd.

648806-D

100%

SealinkAntarabangsa

LtdLL07806

100%

Perkasa AsiaCorporation

LtdLL07807

100%

Hanvoir (L) LtdLL09810

100%

Sea-GoodPte Ltd199707263C

100%

Seabright(Singapore)

Pte Ltd201001447E

100%

Sealink Sdn. Bhd.

20471-D

100%

SutherfieldResourcesSdn. Bhd.

467227-T

100%

Midas Choice

Sdn. Bhd.646673-H

100%

Sea LegendShippingSdn. Bhd.

703278-W

100%

Mitra AngkasaSdn. Bhd.

974404-T

100%

LogistineSdn. Bhd.

896190-T

25%

EuroedgeSdn. Bhd.

571944-T

100%

Sealink Marine

Sdn. Bhd.226309-A

100%

GodrimajuSdn. Bhd.

535404-U

100%

SeabrightSdn. Bhd.

30204-K

100%

Sealink Pacific

Sdn. Bhd.191968-H

100%

Bristal ViewSdn. Bhd.

253385-T

100%

SeastenSdn. Bhd.1054955-A

49%

Sealink Engineeringand Slipway

Sdn. Bhd.653820-H

100%

Baram MouldingIndustriesSdn. Bhd.

200873-D

100%

Sealink ShipyardSdn. Bhd.

195853-D

100%

Aliran SaksamaSdn. Bhd.

473205-H

100%

S INTERNATIONAL BERHADEALINK

800981-X

SINGAPORE LABUAN MALAYSIA


NoticeofAnnualGeneralMeeting

NOTICE IS HEREBY GIVEN thattheEleventhAnnualGeneralMeeting(“11thAGM”)ofSealinkInternationalBerhad(“theCompany”)willbeheldattheMeetingRoom,1stFloor,AdminBlock,SealinkEngineeringandSlipwaySdnBhd,Lot816,Block1,KualaBaramLandDistrict,98100KualaBaramMiri,Sarawak,onTuesday,21May2019at11:00a.m.forthefollowingpurposes:

AGENDA

AS ORDINARY BUSINESS

1. ToreceivetheDirectors’ReportandAuditedFinancialStatementsforthefinancialyearended31December2018togetherwiththeReportoftheAuditorsthereon.

2. ToapprovethepaymentofDirectors’FeesamountingtoRM315,000.00forthefinancialyear

ending31December2019. 3. Tore-electDatukSebastianTingChiewYewwhoshallretireinaccordancewithArticle89ofthe

Company’sArticlesofAssociationand,beingeligible,hasofferedhimselfforre-election. 4. Tore-electMrEricKhooChuanSyn@KhooChuanSynwhoshallretireinaccordancewith

Article89oftheCompany’sArticlesofAssociationand,beingeligible,hasofferedhimselfforre-election.

5. Tore-appointMessrs.Ernst&YoungastheAuditorsoftheCompanyuntiltheconclusionofthenextAnnualGeneralMeetingandtoauthorisetheDirectorstodeterminetheirremuneration.

AS SPECIAL BUSINESS

Toconsiderand,ifthoughtfit,withorwithoutmodifications,topassthefollowingresolutionsasOrdinaryResolutionsandSpecialResolution:

6. Ordinary Resolutions

Continuation in office as Independent Non-Executive Directors pursuant to Practice 4.2 of the Malaysian Code on Corporate Governance 2017

(i) “ThatapprovalbeandisgiventoMrWongChieBinwhohasservedasanIndependent

Non-ExecutiveDirectoroftheCompanyforaconsecutivetermofmorethannine(9)years,tocontinueinofficeasanIndependentNon-ExecutiveDirectoroftheCompany.”

(ii) “ThatapprovalbeandisgiventoMrTohKianSingwhohasservedasanIndependentNon-ExecutiveDirectoroftheCompanyforaconsecutivetermofmorethannine(9)years,tocontinueinofficeasanIndependentNon-ExecutiveDirectoroftheCompany.”

7. Special Resolution

Proposed Alteration of the entire existing Memorandum And Articles of Association of the Company by the replacement thereof with a new Constitution of the Company

(Resolution 1)

(Resolution 2)

(Resolution 3)

(Resolution 4)

(Resolution 5)

(Resolution 6)

(Resolution 7)

Sealink International BerhadAnnual Report 2018 (800981-X) 5

Notice of Annual General Meeting (continued)

“THATapprovalbeandisherebygiventoalteroramendtheentireexistingMemorandumAndArticlesofAssociationoftheCompanybythereplacementthereofwithanewConstitutionoftheCompanyassetoutinAppendixAwithimmediateeffectANDTHATtheBoardofDirectorsoftheCompanybeandisherebyauthorizedtoassenttoanyconditions,modificationsand/oramendmentsasmayberequiredbyanyrelevantauthorities,andtodoallactsandthingsandtakeallsuchstepsasmaybeconsiderednecessarytogivefulleffecttotheforegoing.”

8. Totransactanyotherordinarybusinessofwhichduenoticeshallhavebeengiven.

ByorderoftheBoard,

Yeo Puay Huang (f)CompanySecretary(LS0000577)Dated:22April2019

NOTES:

1. OnlyDepositorswhosenamesappearintheGeneralMeetingRecordofDepositorsasat15May2019beregardedasMembersandshallbeentitledtoattend,speakandvoteatthe11thAGM.

2. AMemberentitledtoattend,speakandvoteatthe11thAGMmayappointaproxytoattend,speakandvoteonhisbehalf.AproxyneednotbeamemberoftheCompany.

3. WhereamemberoftheCompanyisanexemptauthorizednomineewhichholdsordinarysharesintheCompanyformultiplebeneficialownersinonesecuritiesaccount(omnibusaccount),thereisnolimittothenumberofproxieswhichtheexemptauthorizednomineemayappointinrespectofeachomnibusaccountitholds.

4. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointororofhisattorneydulyauthorizedinwritingoriftheappointorisacorporation,eitherunderitscommonsealorunderthehandofanofficerorattorneyofthecorporationdulyauthorized.

5. TheinstrumentappointingaproxymustbedepositedattheregisteredofficeoftheCompanyatLot1035,Block4,MCLD,PiasauIndustrialArea,98000Miri,Sarawak,notlessthan48hoursbeforethetimesetforthis11thAGMoranyadjournmentthereof.


Notice of Annual General Meeting (continued)

Explanatory Notes to Ordinary and Special Business :

1. Item1oftheAgendaismeantfordiscussiononly,astheprovisionofSection340(1)(a)oftheCompaniesAct2016doesnotrequireaformalapprovaloftheshareholdersfortheAuditedFinancialStatements.Hence,thisAgendaitemisnotputforwardforvoting.

2. Ordinary Resolutions

Continuation in office as Independent Non-Executive Directors pursuant to Practice 4.2 of the Malaysian Code on Corporate Governance 2017

TheproposedResolutions5and6aretoseekshareholders’approvaltoretainMrWongChieBinandMrTohKianSingasIndependentNon-ExecutiveDirectors.TheyhaveservedtheCompanyasIndependentNon-ExecutiveDirectorssinceMay2008formorethannine(9)years.TheNominatingCommitteehaveassessedbothofthemandtherebyrecommendedthattheycontinueinofficeasIndependentNon-ExecutiveDirectorsoftheCompanybasedonthefollowingjustifications:

• TheyhavefulfilledthecriteriaunderthedefinitionofIndependentDirectorsasstatedintheMainMarketListingRequirementsofBursaSecurities;

• TheyhavepossessedvastcommercialexperienceandknowledgethatcomplementstheCompany’sboardcomposition,andcontinuetoprovidevaluableinsightsandcontributionstotheBoard;and

• TheyhaveparticipatedinboarddiscussionsandtheyareabletobringindependentandobjectivejudgementstotheBoard.

3. Special Resolution

Proposed Alteration of the entire existing Memorandum And Articles of Association of the Company by the replacement thereof with a new Constitution of the Company

TheproposedSpecialResolution,ifpassed,willbringtheCompany’sConstitutioninlinewiththeCompaniesAct2016andtheamendedMainMarketListingRequirementsofBursaSecuritiesaswellastoenhanceadministrativeefficiency.

TheproposednewConstitutionissetoutinAppendixAwhichiscirculatedtogetherwiththisAnnualReport.


ProfileofDirectors

Yong Foh Choi(Retiredon22May2018)Former Managing DirectorFormer Non-Independent Executive Director

Nationality/Age/Gender:Malaysian/80/Male

Date of Appointment:28December2007

Academic/Professional Qualification(s):• FoundingmemberofBumiArmadaNavigationSdn

Bhd(BANSB)• FounderofSealinkGroupofCompanies• Prominentbusinessman

Working Experience:• DirectorofallthesubsidiariesofSealinkInternational

Berhad• VenturedSSB’sbusinessdirectionintocharteringOSVs

totheoffshoreoilandgasindustry(1997-present)• FormedSealinkSdnBhd (CompanyNo. 20471-D)

(SSB)toprovidecharteringservicesofmarinevesselstonon-oilandgasindustries(1993-1997)

• ManagingDirectorofBumiArmadaNavigationSdnBhd(BANSB)(1974-1993)

• DiversifiedYongFohChoi&SonsEnterpriseSdnBhd(CompanyNo.20716-P)intopropertydevelopment,shippingandoffshorelogisticssupportservices(Mid1970s)

• IncorporatedYongFohChoi&SonsEnterpriseSdnBhd(CompanyNo.20716-P)tospearheadhisownbusiness interest in timber extraction, imports andexports(Early1960s)

Present Directorship(s):ListedIssuer:NIL

OtherPublicCompanies:NIL

PastDirectorship(s)and/orAppointment(s):NIL

Additional Information1.Anyfamilyrelationshipwithanydirectorand/ormajor

shareholderofthelistedissuer: ThefatherofYongKiamSam,whoisaDirectorand

also theChief ExecutiveOfficer CumManagingDirectorofSealinkInternationalBerhad(SIB).

2.Anyconflictofinterestswiththelistedissuer:NIL

3.Otherthantrafficoffences,thelistofconvictionsforoffenceswithinthepast5yearsandparticularsofanypublicsanctionorpenalty imposedby the relevantregulatorybodiesduringthefinancialyear2018:NIL

4.Thenumberofboardmeetingsattendedinthefinancialyear:3/3

Yong Kiam SamChief Executive Officer cum Managing DirectorNon-Independent Executive DirectorChairman of Risk Management Committee


Date of Appointment:28December2007

Academic/Professional Qualification(s):• Bachelor ofCommerce,University ofMelbourne,

Australia• MasterofBusinessAdministration,LondonBusiness

School,UnitedKingdom

Working Experience:• DirectorofallthesubsidiariesofSealinkInternational

Berhad• Senior consultantwithErnst&YoungConsultants,

Singapore• AccountsExecutiveinLambirMyanmarInvestments

Ltd,Myanmar

Present Directorship(s):ListedIssuer:SealinkInternationalBerhad

OtherPublicCompanies:Nil

PastDirectorship(s)and/orAppointment(s):Nil


shareholderofthelistedissuer: He is the son of Yong FohChoi,who is amajor

shareholderofSealinkInternationalBerhad.

2.Anyconflictofinterestswiththelistedissuer:Nil

3.Otherthantrafficoffences,thelistofconvictionsforoffenceswithinthepast5yearsandparticularsofanypublicsanctionorpenalty imposedby the relevantregulatorybodiesduringthefinancialyear2018:Nil



Profile of Directors (continued)

Wong Chie BinIndependent Non-Executive DirectorChairman of Audit CommitteeMember of Nominating CommitteeMember of Remuneration CommitteeMember of Risk Management Committee


Date of Appointment:20May2008

Academic/Professional Qualification(s):• MemberofCharteredAccountantsAustraliaandNew

Zealand• FellowmemberofCharteredTaxInstituteofMalaysia• MemberofMalaysianInstituteofAccountants• BachelorDegreeinCommerce,UniversityofOtago,

NewZealand

Working Experience:• SeniorPartnerofCroweMalaysiaPLT• Over30years’ experience inaccounting,auditing,

taxationandmanagementconsultancyservices





shareholderofthelistedissuer:NIL




Toh Kian SingIndependent Non-Executive DirectorChairman of Remuneration CommitteeMember of Nominating CommitteeMember of Audit CommitteeMember of Risk Management Committee

Nationality/Age/Gender: Singaporean/54/Male

Date of Appointment: 23May2008

Academic/Professional Qualification(s):• BachelorofLaw,NationalUniversityofSingapore• BachelorofCivilLaw,UniversityofOxford

Working Experience:• Hehasvastexperienceasashippinglitigationand

arbitration lawyer, specialising incharterparty,billsof lading, ship sale and purchase, shipbuildingandmarine insurancedisputes. Healso handlescommoditytrading(particularlyoilandminerals)andlettersofcreditdisputes.

• He is a practising advocate and solicitor of theSupremeCourtofSingapore.

• HewasappointedaSeniorCounseloftheSupremeCourtofSingaporeinJanuary2007.

• HeisanarbitratorlistedinthepanelofarbitratorsoftheSingaporeInternationalArbitrationCentre,ChinaMaritime ArbitrationCommission, Kuala LumpurRegionalCentreforArbitration,SingaporeChamberofMaritimeArbitration,LondonCourtofInternationalArbitration,DIFC-LCIAArbitrationCentre, PacificInternationalArbitrationCenter (Vietnam),MemberoftheSouthChinaInternationalEconomicandTradeArbitrationCommission).



PastDirectorship(s)and/orAppointment(s):UTTrustPteLtd


shareholderofthelistedissuer:NIL





Eric Khoo Chuan Syn @ Khoo Chuan SynIndependent Non-Executive DirectorChairman of Nominating CommitteeMember of Remuneration CommitteeMember of Audit CommitteeMember of Risk Management Committee


Date of Appointment:20May2008

Academic/Professional Qualification(s):• Bachelor of Laws (LLB) Hons, University of

Wolverhampton,England,UnitedKingdom• Barrister-at-Law,Gray’sInn,London,England(1979)

Working Experience:• Practising Advocate and Solicitor, Khoo & Co

(1982-present)• Magistrate,JudicialDepartment(1979–1982)



PastDirectorship(s)and/orAppointment(s):Nil


shareholderofthelistedissuer:Nil




Datuk Sebastian Ting Chiew YewIndependent Non-Executive Director Member of Audit CommitteeMember of Nominating CommitteeMember of Remuneration CommitteeMember of Risk Management Committee


Date of Appointment:20August2013

Academic/Professional Qualification(s):• BachelorofLaw(LLB)Hons(SecondClassUpper),

NorthLondonPolytechnic(nowknownasUniversityofNorthLondon)

• MasterofLaw(LLM),UniversityofCambridge(DarwinCollege)England

• Barrister-at-law,CouncilofLegalEducationLincoln’sInn,London,England(1983)

Working Experience:• Commissioner forNationalWaterCommission by

theMinisterofEnergyGreenTechnologyandWaterMalaysia(May2016–May2018)

• MemberofPiasauNatureReserveImplementationandEndowmentCommittee(February2015–present)

• Political Secretary toMinister of Energy GreenTechnologyandWaterMalaysia(April2009–2013)

• PoliticalSecretarytoMinisterofPlantationIndustriesandCommodities(May2004-April2009)

• Councillor,MiriMunicipalCouncil,MiriSarawak(1989-1999)





shareholderofthelistedissuer:Nil 2.Anyconflictofinterestswiththelistedissuer:Nil 3.Otherthantrafficoffences,thelistofconvictionsfor

offenceswithinthepast5yearsandparticularsofanypublicsanctionorpenalty imposedby the relevantregulatorybodiesduringthefinancialyear2018:Nil

4.Thenumberofboardmeetingsattendedinthefinancial

year:6/6

Profile of Directors (continued)


Yong Kiam MiawGeneral Manager for Sealink Shipyard Sdn BhdProject Manager (Property Development) for Sealink Sdn Bhd


Date of Appointment:1September2014

Academic/Professional Qualification(s):• LicensedSecretary• BusinessAdministration

Working Experience:• GeneralManagerforSealinkShipyardSdnBhd• ManagerforLambirTimberSdnBhd• ManagerforSekiwaLoggingSdnBhd

Present Directorship(s):ListedIssuer:Nil



shareholderofthelistedissuer: SonofMrYongFohChoi BrotherofMrYongKiamSam



ProfileofKeySeniorManagement

Angelia Chong Pei ChengGeneral Manager, Group Finance

Nationality/Age/Gender: Malaysian/43/Female

Date of Appointment:1April2018

Academic/Professional Qualification(s):• BachelorofCommerceinAccountancy,Universityof

Canterbury,Christchurch,NewZealand• CharteredAccountantcertifiedbyTheAssociationof

CharteredCertifiedAccountants(ACCA,FCCA)• CharteredAccountantcertifiedbyMalaysianInstitute

ofAccountants(CA,MIA)

Working Experience:• GeneralManager,GroupFinance,SealinkInternational

Berhad(1April2018-Present)• Headof Treasury /CorporateCompliance,Sealink

InternationalBerhad(2016-March2018)• HeadofCompliance,Sealink InternationalBerhad

(2015)• SeniorFinanceManager,PetraResourcesSdnBhd,

Miri(2013-2015)• SeniorFinanceManager,SemuaShippingGroupof

Companies(2005-2013)• Auditor,KPMGSarawak(1998-2005)• AssistantBusinessAdvisor,KPMGAuckland,New

Zealand(1997)

Present Directorship(s):ListedIssuer:Nil



shareholderofthelistedissuer:Nil




ChiefExecutiveOfficer’sMessageandManagementDiscussion&Analysis

Dear Valued Shareholders,

OnbehalfoftheBoardofDirectorsofSealinkInternationalBerhad(“theGroup”),IampleasedtopresenttoyouourAnnualReportforthefinancialyearended31December2018.TheGroupbelievesthatwehaveastrongfoundationforrecoveryfollowingtheinitiativesandstrategieswehaveundertakenwhichhavereshapedandstrengthenedtheGroup,coupledwithimprovingeconomicconditionsandgradualrecoveryinthemarineindustry.

Whiletheoilpriceandexternalenvironmentfactorsarebeyondourcontrol,wearefocusingondevelopingourstrengthsinordertomeetchallengesbetter.

MARKET OVERVIEW

Oilpriceshaverecovered35%toaverageUS$74perbarrel(bbl)yeartodatein2018fromthelowofUS$28bblinearly2016.AnalystshaveloweredtheiraverageBrentforecasttoUS$70-75/bblin2019inviewofapotentiallywidersupply/demandgaponthebackoflesserthanexpectedimpactfromsanctionsonIraninthenearterm,weakerglobalGDPgrowthexpectationsandemergingmarketweakness.Theoverallconventionalshippingmarketisexpectedtoremainonarecoverypath,albeitgradual.(DBSresearchreport2019)Thisissupportedbyrobustoilconsumptiondemand,which,coupledwithOrganizationofthePetroleumExportingCountries’(OPEC)adherencetoproductioncutsandextensionoftheproductioncutstilltodayhasledtosteadyglobalinventorydrawdowns.Thisisapromisingsignalasfarasmarketrebalancingisconcernedandwillcontinuetosupportapositiveoilpricemovementhereon,aslongasthesupplysideiscappedbymarketparticipants.

AforecastreboundinglobalcrudeoilpriceswillbepositiveforMalaysia’supstreamsectoroverthecomingyears,stoking renewedappetite inexplorationanddevelopmentworks thatare increasinglymovingout to theoffshore,deepwaterandtechnologicallychallengingareas.(FitchSolutions,Inc.)

DomesticoilandgasactivitiesacrosstheservicesvaluechainisexpectedtorisebasedontheactivityoutlookreportreleasedbyPetronasforthe2019-2021periodcomparedwithitsoutlookreportfor2018-2020.Itismorepositiveonitsexpectationsforthedrillingsegment,goingbytheexpectednumberofjack-uprigsofbetween16and19,requiredforthethree-yearperiod,whichisalmostdoubletheprojectionofbetween6and10publishedbyPetronaslastyear.Anotherhighlightisthemuchbetteroutlookformarinevessels,onthebackofanexpectedpickupindrillingactivitiesintheperiod.PetronasincreasedtheexpectednumberofvesselsrequiredbytheMalaysianupstreamsectorbyanaverageofabout20vesselsacrosstheboardforthethree-yearperiodcomprisinganchorhandlingtugsupply(AHTS),platformandstraight-supplyvessels(PSVs&SSVs).AnalystsarepositivethatPetronas’drillingandoffshoresupportvessels(OSV)activitiesoffshoreMalaysiareflectariseinassetutilisationacrosstheboard.OSVplayerswillstandtogainthemostfromtheimprovingdomesticlandscape.IncreasedutilisationforAHTS,PSVs&SSVsarenotunexpected,foritrunsintangentwithPetronasrecentroll-outofitsintegratedlogisticscontroltower(ILCT)project).Therespectiveoffshorefabrication,linepipesoffshoreinstallationandhook-up&commissioning(HUC)/maintenance,construction&modification(MCM)segmentswillalsoseeincreaseofworkflows.

Themaritimeindustry,whichsailedatlowspeedforlastfewyearsinordertosurviveandbravetoughtimes,isexpectedtopickupsteamas2019lookspromising,whileplanstorevivetheindustryarewaitingtobeexecuted.Thelocaloilandgassectorwillgetmorepushfromthegovernmentthisyearamidrisingexplorationandproductionactivities.AccordingtoRAMRatings,thecountrywouldrecordfirmereconomicgrowththisyear,abovethoseofotheremergingmarkets.

Globalcapexbudgetsareexpectedtoacceleratein2019,albeitfromalowbase.Already,weareseeingsignsofrecoveryalongthevaluechainforglobaloffshoreactivities.Oilandgasserviceproviderswithregionalorglobalfootprintarewellpoisedtocapitaliseonthistrend.Withoilpricerecoveringwebelievethatthedemandforoilserviceswillcomebackfirstfortheshallowwatersegments,asthesetypicallyhavealowerbreakevencost.ThiswillbebeneficialfortheGroupwhichhasthesevesseltypes.


Chief Executive Officer’s Message and Management Discussion & Analysis (continued)

OVERVIEW OF THE GROUP’S BUSINESS AND OPERATIONS

TheGroupisprincipallyinvolvedinthebusinessofcharteringofmarinevessels,shipbuildingandshiprepair.TheGroupbuilds,ownsandoperatesadiversefleetofmarinesupportvessels,whichservetheglobalexplorationandmarineindustry.

OurshipyardislocatedinKualaBaram,Miri,SarawakandtheworkshopinKrokopMiri,Sarawak.Ourshipyardachievedthefirstmilestonein1999whenitdeliveredthefirstnewbuild,alandingcraftknownas“SealinkVictoria”.To-date,ourshipyardhasconstructedintotalsixtyeight(68)vessels(includingfabricationof2workbarges).Armedwithtechnicalknowhowandmanagementcapabilities,ourGroupisabletoofferasophisticatedarrayofvesselsdesignedtomeetourcustomers’needs.TheGroup’sshipbuildingdivisionwillalsocontinueitsemphasisonshiprepair.ApartfromconstructionofOSVs,theGrouphasdiversifiedintotheconstructionofharbortugsandothernon-oilandgasvessels.

OurshipoperationsarebasedinMiri,SarawakwithbranchofficeslocatedinLabuan,KemamanandSingapore.Theshippingdivisionhasafleetofthirtythree(33)vesselsprovidingabroadrangeofservicestothemarinesectorwiththehigheststandardsofsafetyandtechnologyavailableintheindustry.

Asanintegratedserviceprovider,wehavefulldiscretionandcontroloverthedesignspecification,quality,costandtimelydeliveryofourvessels.Italsoprovidesuswiththeflexibilitytoeither“buildandsell”or“buildandcharter”ourvessels.Ourexperiencedmaintenanceteamcanrespondpromptlyandattendtoemergencyrepairsandwherenecessary,vessel(s)canbearrangedtobeupslippedinternallyatourslipwayinKualaBaramforvesselswithinthevicinity.ThisreducesourdependenceonotheryardsandprovidesourGroupwithadistinctcompetitiveadvantageovertheotherplayersinthemarket.

Overtheyears,theGrouphasestablishedareputationwithaproventrackrecordinbothofourcorebusinesses.Asatestimonytothis,ourclienteleincludesbothlocalandinternationalcompaniesfromtheUnitedStatesofAmerica,Australia,China,LatinAmerica,Europe,EastAfrica,SoutheastAsiaandtheMiddleEast.

TheGroupstrivestointensifyitseffortsandcommitmenttodeliverhighvalueproductsandserviceswithemphasisonsafeoperationsandtomaintainthegroup’spositionasoneoftheleadingintegratedserviceprovidersintheoffshoremarineservicessegment.

AsakeymeasuretomanagetheGroup’sexposuretothebusinessrisks,theGrouphascontinuedonthefollowinginitiativeswhichhavebeenreinforcedandcarriedforwardtothenextfiscalyear:

• Sustainablecostrationalizationandoptimizationofhumanresourceswhereonlycriticalpositionsarefilledwhenthe incumbents leave theGroup.Existingpersonnelare re-deployedwithin theGroup to takeonadditionalresponsibilitiesforbetterefficiencieswithoutimpairingtheadequacyofexistinginternalcontrolsystem;

• Closermonitoringof inventorymanagement,where stringent controls havebeendeployed toaccount forprocurementofgoodsandofservicesvis-à-visexistinginventorylevelstoconservecashflowsandminimizetheriskofinventoryobsolescence;and

• Effectivecashflowmanagement.

Notwithstandingthechallengesfaced,theGrouphasobtainedvariouscontractsandreceivedtendersdirectlyfromnationalandinternationaloilmajorsinMalaysia,throughourjointventureCompany,forbettermarketreachandwiththeviewofenhancingshareholdervalue.Weanticipatemorecontractstobeawardedinthecomingmonths.

Withtheongoinginitiativesinrationalizingandoptimizingcostsandexposures,webelievetheGroupwillbewellpoisedandpositionedtotideovertheprevailingbusinesschallenges.



OVERVIEW OF FINANCIAL PERFORMANCE

Financial results

Supportedbyoutcomesfromstrategicinitiativesimplementedinpreviousyears,theGroupmanagedtoimproveonitsfinancialperformanceamidstchallengingmarketconditions.TheGroup’sfinancialpositionhasimproveddespiteacontractioninearnings.Despiterevenueforfinancialyear(“FY”)2018decliningbyRM5millionor7%,lossnetoftaxhasimprovedbymorethan58%orRM29million.Thisismainlyduetosaleofanewlyconstructedharbortugduringthelastquarterandinlinewiththeongoinginitiativesinrationalizingandoptimizingcostsandexposures.Termloaninterestshavealsoreducedsubstantially,byabout15%,fromRM6.8milliontoRM5.8millionassomeloanshavebeencleared.

Liquidity and resources

TheGroupmonitorsitscashflowsactivelyandensuresallobligationsaremetasandwhentheyfalldue.TheGroupactivelymanagesitsdebtmaturityprofile,operatingcashflowsandtheavailabilityoffundingastoensurethatallrepaymentsandfundingneedsaremet.

BorrowingsreducedsignificantlyfromRM188millionin2017toRM143millionin2018,adropofabout24%.ThisspeakswellontheviabilityoftheGroup’sbusinessdespitethetoughconditionsinwhichitoperates.Atthesametime,withreducedgearingthegroupwillhaveastrongerbalancesheettotakeonadditionalfinancingtofundexpansionwhentheindustryturnsaround.

Capital Management

TheGroup’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sabilitytocontinueasagoingconcernandtomaintainanoptimalcapitalstructuresoastomaximizeshareholdersvalue.Inordertomaintainorachieveanoptimalcapitalstructure,theGroupmayadjustthedividendpayment,returncapitaltoshareholders,obtainnewfinancingfacilitiesordisposeofassetstoreduceborrowings.ManagementmonitorscapitalbasedontheGroup’sgearingratio.TheGroup’sCompany’sstrategyistomaintaingearingratioofnotexceeding100%.Thegearingratioiscalculatedastotalloansandborrowingsdividedbyequitycapital.TheratiofortheGrouphasimprovedfrom49%in2017to39%in2018.

Dividend

ThedeclarationandpaymentofdividendwilldependupontheCompany’sfinancialperformance,cashrequirementsandissubjecttocertainlimitationsimposedundertheCompanyAct2016.Duetotheaforesaidlossesincurred,TheBoarddoesnotrecommendanydividendfortheFY2018.

CORPORATE SOCIAL RESPONSIBILITY

TheGroupiscontinuouslycommittedtofulfillingourroleasaresponsiblecorporatesocialcitizen.ThemainfociofourGrouponcorporatesocialinitiativesaretheWorkplace,theEnvironmentandtheCommunity,withtheviewofmaintainingasustainablevaluefortheGroupanditsshareholders.ActivitiesundertakeninthedischargeoftheGroup’scorporatesocialresponsibilitiesaresetoutseparatelyintheSustainabilityReport.



CORPORATE GOVERNANCE AND INVESTORS’ RELATIONS

TheBoardbelieves inembeddingaculture in theGroupthatseekstobalancecompliancerequirementswiththeneed todeliver long-termstrategic value to shareholdersandstakeholders throughperformance,predicatedonentrepreneurship,controlandownership,andwithdueconsiderationtowardsethicsandintegrity.Assuch,theBoardstrivestoembracethesubstancebehindthePrinciplesandRecommendationsaspromulgatedbytheMalaysianCodeonCorporateGovernance2017andnotmerelytheform.

ApartfromthedisclosuresintheAnnualReport,theGrouphasalsoestablishedacorporatewebsiteatwww.asiasealink.comthathouses, inter-alia,documentationontheGroup’scorporategovernancepractices liketheBoardCharter,Whistle-BlowingPolicy,CodeofConductforDirectorsandemployeesoftheGroup,CorporateDisclosurePoliciesandProceduresandSustainabilityPolicythatareusefulforinvestorsaswellaspotentialinvestorstobeapprisedonhowtheBoardviewscorporategovernanceandengagementwithinvestors.

OUTLOOK AND PROSPECTS

Althoughmarketsentimentsarestillcautious,thereismoreoptimismoverprospectsfortheoilandgasindustryonthebackofstableoilprices,promptinggreaterlevelsofactivity.TheGroupwillcontinuetomanagecostsandincreaseefficiency in this turbulenteconomicclimate to improveourcompetitivenessand resilience.Ridingonour strongfoundation,weareconfidentthattheGroupwillachievegoodresultsgoingforward.

Basedonindustryanalystreports,theoilmarketreactedpositivelytotheOrganisationofthePetroleumExportingCountries’(OPEC)recentdecisiontoextendoiloutputcutstillJune2019andUSsanctionsagainstexportersIranandVenezuela.Meanwhile,analystbelievesthatoilpriceswillseesomestabilisationfor2019,supportedbydemandandsupplyfundamentals.

Petronas’ActivityOutlookfor2019-2021portraysgrowthinbrownfieldactivitiesparticularlyinrigscategoryanditssupportingservices,marinevessels.Baseactivitiesinmaintenanceareprojectedtoincreaseforbothonshoreandoffshoreintandemwiththisoutlook.

Researchalsoindicatesthattheupwardrevisioninmostupstreamsub-segments’activitiescouldbeduetothedelayedworkorderslastyearbeingpushedto2019whichmaypotentiallyleadtobettercontractflowsandfurtherprovideorder-bookreplenishmentopportunitiesforthesupportsectors.

TheGroupbelievesthatthesteadyoilpricerecoveryinrecentmonthshaveledtotheincreaseofactivitiesintheoffshoresegment.SuchoptimismisexpectedtoboostthenumberofprojectsapprovedwhichwillalsorepresentopportunitiesfortheGroup.Theoilandgassectorisexpectedtocontinueonarecoverypathwithupstreamcompaniesgraduallysteppingupproductionandboostingotherfirmsinvolvedintheindustry.

According toKenangaResearch, tenderingactivitieshavebeenon theriseandoilmajorsarereviewingprojectssuggestingthattheyarerelativelymoreupbeatontheupstreamsectorfollowingthestabilisationofoilprices.

TheGroupwillcontinueitsemphasisonitscoreactivitiesofshipbuilding,shipcharterandshiprepair.TheGroup’sshipbuildingdivisionwillbe lookingtowardsbuildingvesselswhichhaveanichemarketaswellasenhancing itsdocking(shiprepair)facilities,whilstcontinuouseffortswillbetakentowardsoptimisingcapacityutilisationoftheGroup’svessels.TheGroupisalsolookingatbuildingnewvesselsthataremoreenergyefficientandenvironmentfriendly,inlinewithtighterenvironmentalregulationsinthemaritimeindustry.Withtheongoinginitiativesinsustainablecostrationalisationandexposures,webelievetheGroupiswellpositionedtotideoverthecurrentbusinesschallenges,ofwhichtheworstseemtobeover.


OUTLOOK AND PROSPECTS (continued)

WiththeGovernmentlendingstrongersupporttothemaritimeindustrywiththerecentlaunchoftheMalaysiaShippingMasterplan,thecountryissettobecomeaself-sufficientandinternationallycompetitivenationthatcanbenefitusalongthemaritimeindustrysupplychain.Thelocaloilandgassectorwillgetmorepushfromthegovernmentthisyearamidrisingexplorationandproductionactivities.

Barringanyunforeseencircumstancesorevents,TheBoardisoptimisticthatdemandforoffshoremarinesupportvesselswillimprovewithfurtherincreasedexpenditureinoffshoreoilfielddevelopmentandmaintenanceworkbytheoilmajors.Theoutlookisimprovinginanticipationofashippingrecovery.

NOTE OF APPRECIATION

OnbehalfoftheBoardofDirectors,Iwishtoconveyoursincerethanksandappreciationtoallourstakeholders,beginningwithourshareholdersfortheircontinuedsupportandbeliefintheprospectsofourGroup.Toourclients,businesspartners,associatesandprincipals;fortheircontinuoussupportandbeliefinourcompetencies.ToourBankersandtheauthorities;fortheirvitalroleinourstrategicplanningandexecution.ToourcommittedanddedicatedManagementteam;fortheirhardwork,professionalismandtirelesseffortsinmaintainingourpositionasoneoftheleadingmarineoffshoresupportvesselprovidersandshipbuildersinMalaysia.

Toourdedicatedandloyalemployees;yourdedication,tirelesseffortsandcommitmenthavenotgoneunnoticed.Letusweatherthisdownturntogether,asoneteamwithourvaluesupheld,andcomeoutofthiswithmoreresilienceandfocus.Letusmaintainourcommitmenttosteertowardsgreaterheightsinthefuturetogether.ItismysincerehopethatSealinkwillcontinuetogrowfromstrengthtostrengthinthecomingyearsandbeyond.

Lastbutnotleast,myspecialthankstomyfellowDirectorsontheBoardfortheirinvaluablesupportandguidancethroughoutthefinancialyear.

Thankyou.

YONG KIAM SAMChiefExecutiveOfficercumManagingDirector



AuditCommitteeReport

1. COMPOSITION

TheAuditCommittee(the“Committee”),whichwasestablishedbytheBoard,comprisesthefollowingDirectorsasitsmembers:

Chairman : WongChieBin(IndependentNon-ExecutiveDirectorandmemberoftheMalaysianInstituteofAccountants)

Members : DatukSebastianTingChiewYew(IndependentNon-ExecutiveDirector) : TohKianSing(IndependentNon-ExecutiveDirector) : EricKhooChuanSyn@KhooChuanSyn(IndependentNon-ExecutiveDirector)

2. SUMMARY OF WORK UNDERTAKEN BY THE AUDIT COMMITTEE DURING THE FINANCIAL YEAR

TheAuditCommitteehadfive(5)meetingsduringthefinancialyearended31December2018.

Audit Committee Member Attendance

WongChieBin 5/5 DatukSebastianTingChiewYew 5/5 TohKianSing 5/5 EricKhooChuanSyn@KhooChuanSyn 5/5

TheAuditCommitteememberswereservedwithadequatenoticeofmeetingbytheCommitteeSecretary,settingoutthemeetingagendaandrelevantpapers,whichweredistributedwellbeforethemeetingtoenablethemtogothroughthematterstobedeliberatedatthemeeting.TheCompanySecretaryistheCommitteeSecretary.Atthemeetings,ManagementpersonneloftheGroup,includingtheExecutiveDirectors,GeneralManagerGroupFinanceandrepresentativesoftheexternalandinternalauditors,wereinvitedtobrieftheAuditCommitteeonmattersontheagendathatrequiredtheirinput.

DuringthefinancialyearunderreviewanduptothedateofthisReport,theAuditCommitteecarriedoutthefollowingworkwhichhasmetitsresponsibilities,basedonitstermsofreference:

• reviewedthequarterlyfinancialannouncementsoftheGroupbeforerecommendingthesamefortheBoardofDirectors’approval, focusingonchanges inor implementationofmajoraccountingpolicychanges,significantandunusualeventsandcompliancewithaccountingstandardsandotherlegalrequirements;

• reviewedtheauditplanoftheexternalauditors,includingtheareasofauditemphasisandsummaryofplannedauditproceduresandevaluatedtheinternalcontrolsystem;

• reviewedtheexternalauditors’reportsarisingfromtheauditandanyupdatesonnewfinancialreportingstandardsissuedbytheMalaysianAccountingStandardsBoard;

• reviewed theperformanceof the external auditors in termsof their capability, professionalism, andindependencebeforerecommendingthemtotheBoardtobeconsideredforre-appointmentattheAnnualGeneralMeeting;

• metwitharepresentativeoftheexternalauditorsintheabsenceofManagementtoassessiftherewereissuesofconcernsthattheexternalauditorsfacedincarryingouttheirwork;

• reviewedtheauditedannualfinancialstatementsoftheGroupandtheCompanybeforerecommendingthesametotheBoardforapproval;

• reviewedthereportonriskassessmentfortheyear2018tabledbyRiskManagementCommittee,whichprovidedthetopfive(5)significantrisks,controlissuesandsummaryofriskassessment;

• reviewedtheadequacyofthescope,functions,competencyandresourcesoftheinternalauditfunction.ThisincludesdeterminingwhethertheinternalauditfunctiondeploysinternalauditingstandardspromulgatedbytheInstituteofInternalAuditors,Inc.aglobalprofessionalbodyadvocatingstandardsfortheinternationalauditingprofession;


2. SUMMARY OF WORK UNDERTAKEN BY THE AUDIT COMMITTEE DURING THE FINANCIAL YEAR (continued)

• reviewedtheinternalauditreportsandrecommendationsoninternalauditfindings,includingfollow-upbytheinternalauditfunctiononthestatusofManagement’simplementationofactionplanstoaddressissueshighlightedinpreviousinternalauditreports;

• reviewedrelatedpartytransactionsoftheGroupandanyconflictofinterestsituationthatmayarisewithintheCompanyandGroup,includinganytransaction,procedureorcourseofconductthatraisesquestionsofmanagementintegrity;

• reviewedtheimpairmentofassetsoftheGroup; • reviewontheGroupCashflowestimates/Forecastfor2018; • reviewed theGroup’s trade receivablesandsought relevantexplanations fromManagement tobetter

understandhowreceivablesweremanaged; • reviewedtheCompany’sCorporateGovernanceStatement,AuditCommitteeReport, theStatementon

RiskManagementandInternalControlStatementandStatementonCorporateSocialResponsibility,beforerecommendingthemforapprovalbytheBoardforinclusioninthisAnnualReport;and

• reportedtotheBoardonitsactivitiesandsignificantfindingsandresults.

TheAuditCommitteeisawareoftheimportanceforitsmemberstoundergocontinuousprofessionaleducationtostayappraisedofregulatorydevelopmentsthataffecttheCommitteeinthedischargeofitsresponsibilities.DetailsoftrainingcoursesandseminarsattendedbytheAuditCommitteemembersduringthefinancialyearunderreviewanduptothedateofthisReportaredisclosedintheCorporateGovernanceStatementincludedinthisAnnualReport.

3. SUMMARY OF WORK OF THE INTERNAL AUDIT FUNCTION

TheCompanyoutsourceditsinternalauditfunctiontoKPMGManagement&RiskConsultingSdn.Bhd(150059-H),anindependentprofessionalfirm,whichreporteddirectlytotheAuditCommittee.Uponexpiryandpendingrenewalofcontractattheendofthefinancialyear,theCommitteeshallevaluatetheperformanceoftheoutsourcedinternalauditserviceprovider.

Duringthefinancialyearunderreview,theInternalAuditorscarriedoutthefollowingwork:

• assistedtheAuditCommitteeinassessingtheadequacyandoperatingeffectivenessoftheGroup’sriskmanagementandinternalcontrolsystems,basedonaninternalauditplan(IAP)approvedbytheAuditCommitteebeforeinternalauditworkcommenced.TheIAPsetsthedirectionandscopeoftheplannedinternalaudit;

• conductedtheauditworkaspertheIAP; • coveredthefollowingkeyprocessesstatedintheIAPwhichincludedfinancial,procurement,inventory,

regulatorycompliance(Safety,healthandenvironment)andinformationtechnology,fixedasset,humanresourcesmanagementandcorporategovernance;

• followeduponthestatusofManagement’simplementationofinternalauditrecommendationsandactionplansinprecedingauditcycles;

• consultedManagementonanyareasofconcerned; • arrangedforexitmeetingwiththerespectiveprocessowners; • issuedfinalreportandpresentedtotheAuditCommittee;and • engagedwithManagementandprovidedcontinuousimprovementtotheGroup.

Thescopeof internalauditcoveredkeyoperatingcompanies in theGroup,encompassing theshipbuildingandcharteringoperationsassetoutintheIAP.FurtherdetailsoftheinternalauditfunctionanditsactivitiesareprovidedintheStatementonRiskManagementandInternalControlincludedinthisAnnualReport.

This Audit Committee Report is made in accordance with the resolution of the Audit Committee dated 9 April 2019.

Audit Committee Report (continued)


INTRODUCTION

TheBoardofDirectors(the“Board”)ispleasedtopresentherewiththeStatementonRiskManagementandInternalControl(the“Statement”),whichoutlinesthenatureandscopeoftheriskmanagementandinternalcontrolsystemintheGroup(comprisingtheCompanyanditssubsidiaries)forthefinancialyearended31December2018anduptothedateofapprovalofthisStatementforinclusionintheAnnualReportoftheCompany.

ThisisinlinewithParagraph15.26(b)oftheMainMarketListingRequirements(“MMLR”)ofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”)whichstipulatesthatalistedissuermustensurethatitsBoardofDirectorsissuesastatementaboutthestateofriskmanagementandinternalcontrolofthelistedissuerasagroupandguidedbytheStatementonRiskManagementandInternalControl:GuidelinesforDirectorsofListedIssuers.

BOARD’S RESPONSIBILITY

TheBoardacknowledgesandaffirmsitsoverallresponsibilityfortheGroup’sriskmanagementandinternalcontrolsystemtosafeguardshareholders’investmentandtheGroup’sassets,includingreviewingtheadequacyandoperatingeffectivenessofthesysteminmeetingtheGroup’sobjectives.

TheBoardisassistedbythemanagementinimplementingtheBoard’spoliciesandproceduresonriskandcontrolbyidentifying,evaluatingandmanagingbusinessrisks,comprisingstrategic,financialandoperationalrisksaswellasasystemofinternalcontroltomitigatesuchrisks.

Inviewofthelimitationsinherentinanysystemofriskmanagementandinternalcontrol,thesystemisdesignedtomanage,ratherthantoeliminate,theriskoffailuretoachievetheGroup’sobjectives.Thesystemcan,therefore,onlyprovidereasonable,butnotabsolute,assuranceagainstanymaterialmisstatement,financiallossorfraudulentpractices.

KEY RISK MANAGEMENT AND INTERNAL CONTROL FEATURES AND PROCESSES

ThekeyfeaturesandprocessesthathavebeenestablishedtoensuretheadequacyandeffectivenessoftheGroup’sgovernance,riskmanagementandinternalcontrolsystemareasfollows:

1. Risk Management

TheBoardprovidesfullsupporttoimplementtheriskmanagementframeworkandprocesseswithanappropriateorganizational structureandensure that roles, responsibilitiesandaccountabilitiesareclearlydefinedandcommunicatedatalllevels.

TheRiskManagementCommittee(RMC)wasestablishedtoprovideriskoversightandassessriskmanagementmattersrelatingtotheGroupprudently.ThecriticalrisksweredocumentedanddeliberatedattheRiskManagementCommittee(RMC)meetingforonwardreportingtotheAuditCommitteeandBoardfornotation,includinganyconcernsthatwereraisedforfollow-up.

TheGrouphasanongoing riskmanagementprocesswhich includes identifying,evaluatingandmanagingofsignificantrisksthatmayaffecttheachievementofGroupobjectives.Understandingtheriskswefaceandmanagingthemappropriatelywillenhanceourabilitytomakebetterdecisions,animprovedperformancetoachieveobjectivesandsubsequentlyassistinthecreation,protectionandmaximizationofvalue.ThiswillalsoassisttheBoardandManagementinmaintainingasoundinternalcontrolsystemwithintheGroupandsafeguardshareholders’investmentandtheGroup’sassets.

StatementonRiskManagementandInternalControl


1. Risk Management (continued)

RiskmanagementisembeddedintheGroup’smanagementsystem.TheManagementandallheadsofdepartment/businessunitsoftheGroupareinvolvedintheidentificationandmanagementofsignificantrisks.ItisthegeneraldutyandresponsibilityofallpersonneloftheGrouptoadheretotheframeworkandatalltimesbeconsciousoftherisksrelatedtotheiractionsanddecisionsthatmayadverselyaffecttheoperations,reputationandassetsoftheGroup.ThisincludescarryingoutjobsinacarefulandconscientiousmannerthatcontributestothehighethicsandculturewithintheGroup.ThedeliberationsofrisksandrelatedmitigatingactivitiesarecarriedoutatregularmanagementmeetingoftheGroup.

2. Organizational and reporting Structure

TheGrouphasanestablishedorganizationalstructurewithclearlydefinedlinesofresponsibilitiesandappropriatelevelsofdelegationandauthority.Keydutiesaresegregatedamongstdifferentpersonnelofmajorbusinessdivisionsand keyprocesses, suchas shipbuildingandcharteringoperations, financialmanagement andreporting,treasury,capitalexpendituremanagement,humanresourcemanagementandinformationmanagement.SegregationofdutiesamongstdifferentpersonnelisinplacesuchthatnoonepersonnelisinvolvedintheentirebusinessoftheGroupfromrequisitionforgoodsorservices,orderingfromvendors,receivingorhavingcustodyofthegoodsorservices,recordingoftransactionsandapprovalofpayments.

Aprocessof hierarchical reporting isestablishedviaa structuredorganizationchart,whichprovides foradocumentedandauditabletrailofaccountabilityinrespectofdecisionsmadeandexecuted.Duringthefinancialyearunderreview,managementandoperationsmeetingsconductedbySeniorManagementwhichcomprisestheChiefExecutiveOfficercumManagingDirector,Directoranddivisionalheads,wereheld tooversee thefinancialandoperationalperformanceoftheGroup,includingthediscussionofchallengesfacedinoperationsandactionplanstoaddresstheconcerns.Theproceedingsofsuchmeetingswererecordedbywayofminuteswhichweretrackedforfollow-upactionplans.

3. Group Limits of Authority TheGrouphasanestablishedGroupLimitsofAuthority(“GLOA”)manualwhichsetsouttheauthorizationlimits

fortheGroup’smanagementandstaffandalsothosemattersrequiringBoardapprovaltoensureaccountability,segregationofdutiesandcontrolovertheGroup’sfinancialcommitments.TheGLOAmanualisreviewedandupdatedfromtimetotimetobealignedwithbusiness,operationalandstructuralneedsandchanges.

4. Policies and Procedures

Policiesandprocedurestoensurecompliancewithriskmanagement,internalcontrolsandrelevantlawsandregulationsaresetoutprogressivelyinthestandardoperatingproceduresofthedepartmentordivisions.TheGrouphasestablishedinternalpoliciesandprocedurescoveringkeybusinessunitsandoperationsincludingISOcertificationfortheGroup’sshipbuildingdivisionthatprovidesforanorderlyprocessesanddocumentationsystemonitsactivities.Thesepoliciesandproceduresarereviewedandrevisedperiodicallytoensureitsrelevancetoaddressthechangingenvironment,operationalrequirementandchangesofrisk.

5. Audit

InternalandexternalAuditareoutsourcedtoindependentprofessionalfirms,whichreportdirectlytotheAuditCommittee.

AuditengagementsarecarriedoutbasedontheannualauditplanapprovedbytheAuditCommitteeandtakeintoconsiderationfeedbacksfromtheManagement.InternalAuditassessestheselectedareasundertheauditscopewithregardtoriskexposures,compliancetowardstheapprovedpoliciesandproceduresandrelevantlawsandregulationsandalso,attimes,benchmarkagainstavailablebestpractices.

Statement on Risk Management and Internal Control (continued)


5. Audit (continued)

TheareascoveredbytheInternalAuditFunctionforthefinancialyearunderreviewencompassedkeyprocessessuchasfinancialmanagement,fixedassetsmanagement,operations(coveringpurchasing,logistics,informationmanagement,inventorymanagement,humanresourcemanagement,safety,healthandenvironmentmanagement)andcorporategovernanceundertakenbysignificantcompaniesintheGroupinvolvedintheshipbuildingandcharteringoperations.

TherewasnorestrictionplaceduponthescopeoftheInternalAuditscopeofworkandrepresentativesoftheInternalAuditFunctionwereallowedunrestrictedaccesstotherecordsandrelevantpersonneloftheGroup.

Foranysignificantweaknessesorgapsidentifiedinthegovernanceprocesses,riskmanagementprocessesandcontrolsduringtheengagement,InternalAuditprovidesrecommendationstoManagementtoimprovetheirdesignandeffectivenessofcontrolswhereapplicable.AttheAuditCommitteemeetingswherethereportsoftheInternalAuditfindingsweretabled,pertinentclarificationweresoughtfromManagement,thusenabledtheAuditCommitteetoassessontheadequacyandoperatingeffectivenessoftheGroup’sriskmanagementandinternalcontrolsysteminmeetingthecorporateobjectives.TheAuditCommitteeinturnbriefedtheBoardonanycriticalissueshighlightedbytheInternalAuditors,includingremedialmeasurestobeimplementedbyManagement.

Inaddition,InternalAuditassessesandreportstheadequacyandeffectivenessoftheGroup’sgovernance,riskmanagementandinternalcontrolprocessesfortwo(2)cyclestotheAuditCommitteebasedontheengagementscarriedoutwithinthefinancialyearended31December2018.

ThecostsincurredontheInternalAuditFunctionforthefinancialyearunderreviewamountedtoapproximatelyRM81,420.

TheExternalAuditor’sannualplanwhichcomprisesplannedauditservices(inclusiveofthequarterlyreviewonthequarterlyfinancialresultsandotherregulatoryreportingrequirements),recurringnon-auditservicesandnon-recurringnon-auditservicesaretabledannuallytotheAuditCommitteefordeliberationandapproval.

Assurance by the Chief Executive Officer cum Managing Director and General Manager, Group Finance on the adequacy and effectiveness of the risk management and internal control system

TheBoardhasreceivedassurancefromtheChiefExecutiveOfficercumManagingDirectorandGeneralManager,GroupFinancethattheGroup’sinternalcontrolandriskmanagementsystemisoperatingadequatelyandeffectively,inallmaterialaspects,forthefinancialyearunderreviewanduptothedateofapprovalofthisStatementforinclusioninthisAnnualReport.

Board’s comments on the adequacy and effectiveness of the Group’s risk management and internal control system

TheBoard,throughitsAuditCommittee,hasreviewedtheadequacyandoperatingeffectivenessoftheGroup’sriskmanagementandinternalcontrolsystemandthatrelevantactionshavebeenorarebeingtaken,asthecasemaybe,toremedyinternalcontrolweaknessesidentifiedfromthereview,whichwaslargelybasedonobservationsraisedbytheInternalAuditorsandExternalAuditorsdirectlytotheAuditCommittee.

TheBoardisnotawareofanysignificantweaknessesintheriskmanagementandinternalcontrolsystemthathasresultedinmateriallosses,contingenciesoruncertaintiesthatwouldrequirementionintheCompany’sAnnualReport.Notwithstanding this, theBoard, throughManagement,continues to takemeasures tostrengthen theGroup’s riskmanagementandinternalcontrolsystemfromtimetotimebasedonrecommendationsoftheInternalAuditFunctionaswellastheExternalAuditors.



Review of Statement by the External Auditors

TheexternalauditorshavereviewedthisStatementonRiskManagementandInternalControlpursuanttothescopesetoutinAuditandAssurancePracticeGuide3,GuidanceforAuditorsonEngagementstoReportontheStatementonRiskManagementandInternalControlincludedintheAnnualReport(“AAPG3”)issuedbytheMalaysianInstituteofAccountants(“MIA”)forinclusionintheannualreportoftheGroupfortheyearended31December2018,andreportedtotheBoardthatnothinghascometotheirattentionthatcausethemtobelievethatthestatementintendedtobeincludedintheannualreportoftheGroup,inallmaterialrespects:hasnotbeenpreparedinaccordancewiththedisclosuresrequiredbyparagraphs41and42oftheStatementonRiskManagementandInternalControl:GuidelinesforDirectorsofListedIssuers,orisfactuallyinaccurate.

AAPG3doesnotrequiretheexternalauditorstoconsiderwhethertheDirectors’StatementonRiskManagementandInternalControlcoversallrisksandcontrols,ortoformanopinionontheadequacyandeffectivenessoftheGroup’sriskmanagementandinternalcontrolsystemincludingtheassessmentandopinionbytheDirectorsandmanagementthereon.Thereportfromtheexternalauditorswasmadesolelyfor,anddirectedsolelytotheBoardofDirectorsinconnectionwiththeircompliancewiththelistingrequirementsofBursaMalaysiaSecuritiesBerhadandfornootherpurposesorparties.TheexternalauditorsdonotassumeresponsibilitytoanypersonotherthantheBoardofDirectorsinrespectofanyaspectofthisreport.

This Statement is issued in accordance with a resolution of the Board dated 9 April 2019.



CorporateGovernanceOverviewStatement

TheBoardofDirectors(“Board”)ofSealinkInternationalBerhad(“SIB”)recognizestheimportanceofadoptinghighstandardsofcorporategovernance,notonlytosafeguardstakeholders’interestsbutalsotoenhanceshareholders’valueandinbuildingasustainablebusinessinthelongrun.

TheBoardbelieves inembeddingaculture in theCompanyand itssubsidiaries (“Group”) thatseeks tobalancecompliancerequirementswiththeneedtodeliverlong-termstrategicvaluetoshareholdersandstakeholdersthroughperformance,predicatedonentrepreneurship,control andownership,andwithconsideration towardsethicsandintegrity.Assuch,theBoardstrivestoembracethesubstancebehindcorporategovernancerecommendationsandnotmerelytheform.

Paragraph15.25of theMainMarketListingRequirements (“MMLR”)ofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”)requirestheBoardtoprovideanoverviewoftheapplicationofthePrinciplessetoutintheMalaysianCodeonCorporateGovernance(“MCCG2017”)forthefinancialyearended31December2018.ThedetailedapplicationbySIBforeachpracticeassetoutintheMCCG2017duringthefinancialyear31December2018(“FY2018”)isdisclosedintheCorporateGovernanceReport(“CGReport”).

PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS

PART 1 – BOARD RESPONSIBILITIES

Inthedischargeofitsfiduciaryandstewardshiprole,theBoardhasassumedthefollowingprincipalresponsibilitiesinrelationtotheCompany:

• PromotegoodcorporategovernanceculturewithintheGroupwhichreinforcesethical,prudentandprofessionalbehavior;

• Review,challengeanddecideonManagement’sproposalonmattersassetoutintheGroupCorporateAuthorityManualdocument,whichincludestheoverallcorporatestrategy,businessplan,budgetandregulatoryplan,andmonitortheimplementationbyManagement;

• Reviewandapprovestrategicinitiativesincludingcorporatebusinessrestructuringorstreamliningandstrategicalliances,toensurethattheysupportlong-termvaluecreationandtakeintoaccounteconomic,environmentandsocialconsiderationsunderpinningsustainability;

• OverseetheconductoftheGroup’sbusinessestoevaluateandassessmanagementperformancewhetherthebusinessesarebeingproperlymanaged;

• AssessandidentifytheprincipalrisksoftheGroup’sbusinessesinrecognitionthatbusinessdecisionsinvolvethetakingofappropriaterisks;

• SettheriskappetitewithinwhichtheBoardexpectsManagementtooperate,andensurethatthereisanappropriateriskmanagementframeworktoidentify,analyse,evaluate,manageandmonitorsignificantfinancialandnon-financialrisks;

• Approvethenomination,selection,successionpolicies,andremunerationpackagesfortheBoardmembers,BoardCommitteemembers,NomineeDirectorsonthefunctionalBoardsofthesubsidiariesandCEO,andtheannualmanpowerbudgetfortheGroup,includingmanagingsuccessionplanning,appointing,training,fixingthecompensationof,andwhereappropriatereplacingseniormanagementorkeymanagementpersonnel;

• Approvetheappointment,resignationorremovalofCompanySecretaries;

• Developandimplementan“investorrelationsprogramme”fortheGroup;


PART 1 – BOARD RESPONSIBILITIES (continued)

• ReviewtheadequacyandintegrityoftheGroup’sinternalcontrolsystemsandmanagementinformationsystems,includingsystemsforcompliancewithapplicablelaws,regulations,rules,directivesandguidelines;

• ReviewandapprovetheFinancialStatementsencompassingannualauditedaccountsandquarterlyreports,dividendpolicy,creditfacilitiesfromfinancialinstitutionsandguarantees;

• ReviewandapprovetheAuditCommitteeReport,RiskManagementandInternalControlStatementfortheAnnualReport;

• Reviewandapprovethecapitalexpenditure,purchaseoffixedassets,operatingexpenditure,variationorderandanyothermattersinaccordancewiththeGroupCorporateAuthorityManual;

• Approvetheappointmentofexternalauditorsandtheirrelatedauditfees;and

• Carryoutorperformsuchotherfunctionsnecessaryforthedischargeofitsfiduciarydutiesundertherelevantlaws,rulesandregulations.

Board Charter

TheBoardCharter,whichservesasareferencepointfortheBoard’sactivitiestoenableDirectorstocarryouttheirstewardshiproleanddischargetheirfiduciarydutiestowardstheCompany.

TheBoardCharterisreviewedannually.AmendmentsandupdatesaremadefromtimetotimeinaccordancewiththeneedoftheCompanytoensureitseffectivenessandconsistencywiththeBoard’sobjectiveandcorporatevisionaswellastobeinlinewithchangestostatutoryandregulatoryrequirement.

TheBoardCharterisavailableforreferenceontheCompany’scorporatewebsiteatwww.asiasealink.com.

Code of Conduct / Ethics

TheBoardrecognisestheimportanceofhavinginplaceaCodeofConduct/Ethics,settingoutthestandardsofconductexpectedfromDirectorsandemployees,toengendergoodcorporatebehavior.TheBoardChartersetsoutaCodeofEthicstobeobservedbyDirectors.Asfortheconductofemployees,theBoardhasformalisedanEmployeeHandbooktobeobservedbyemployeesacrosstheGroup.

TheCodeofConductisavailableforreferenceontheCompany’scorporatewebsiteatwww.asiasealink.com.

Whistle-Blowing Policies and Procedures

TheBoardhasalsoadoptedWhistle-BlowingPoliciesandProcedures,whichoutlinewhen,howandtowhomaconcernmaybeproperlyraisedabouttheactualorpotentialcorporatefraudorbreachofregulatoryrequirementsinvolvingemployee,ManagementorDirectorintheGroup.TheWhistleBlowingPolicyisavailableforreferenceontheCompany’scorporatewebsiteatwww.asiasealink.com.

Sustainability of business

TheBoardismindfuloftheimportanceofbusinesssustainabilityand,inconductingtheGroup’sbusiness,theimpactontheenvironment,socialandgovernanceaspectsisconsidered.Accordingly,theBoardhasformalizedtheCompany’ssustainabilitypolicyduringthefinancialyearunderreviewthataddressesenvironment,socialandgovernanceelementsinitsstrategicinitiatives.TheSustainabilityPolicyisavailableforreferenceontheCompany’scorporatewebsiteatwww.asiasealink.com.

Corporate Governance Overview Statement (continued)


PART 2 – BOARD COMPOSITION

Board Composition, Diversity

AtthedateofthisStatement,theBoardconsistsoffive(5)members,comprisingone(1)ExecutiveDirectorandfour(4)IndependentDirectors.ThiscompositionfulfillstherequirementsassetoutunderMMLRofBursaSecurities,whichstipulatethatatleasttwo(2)Directorsorone-thirdoftheBoard,whicheverishigher,mustbeIndependent.TheprofileofeachDirectorissetoutinthisAnnualReport.Basedonanassessmentofitsskillsmatrix,theBoardisoftheviewthattheDirectors,withtheirdifferentbackgroundandspecializations,collectivelybringwiththemawiderangeofexperienceandexpertiseinareassuchasfinance;accountingandaudit;corporateaffairs;legal;andmarketingandoperations,whichareconsideredadequatefortheGroup’sneeds.

TheChiefExecutiveOfficercumManagingDirectoroversees theday-to-dayoperationsof theGroup’sbusiness.TheNon-ExecutiveDirectors,whichcompriseexclusively IndependentDirectors,providetherelevantchecksandbalancebyreviewingtheGroup’sperformanceagainstbudgetandinquiringfromtheExecutiveDirectoraswellasSeniorManagementpersonnelexplanations,asneeded,atscheduledBoardandAuditCommitteemeetings.Allthefour(4)IndependentDirectorssitontheFour(4)BoardCommittees,namelytheAuditCommittee,RiskManagementCommittee,NominatingCommitteeandRemunerationCommittee.

Reinforce Independence of the Board

TheBoardisinthemidstofidentifyingaDirectortohelmtheBoardChairmanpositionsincethedemiseofitsformerChairman.AteachmeetingoftheBoard,theDirectorsappointfromamongstthemaDirectortochairthemeeting.FortheSix(6)meetingsconvenedduringthefinancialyearunderreview,theDirectorwhochairedthemeetingswasanIndependentDirector.ThecurrentcompositionofIndependentNon-ExecutiveDirectorsintheBoard,whichcomprisesamajorityofBoardmembers,providesforpertinentchecksandbalanceintheBoardsuchthatnooneDirectorhasunfetteredpowersindecisionmaking.

TheChairmanofthemeetingisresponsibleforensuringtheadequacyandeffectivenessoftheBoard’sgovernanceprocessandactsasafacilitatoratBoardmeetingstoensurethatcontributionsfromDirectorsareforthcomingonmattersbeingdeliberatedandthatnoBoardmemberdominatesdiscussion.WhilsttheChiefExecutiveOfficercumManagingDirectorimplementstheGroup’sstrategicinitiatives,policiesanddecisionadoptedbytheBoardandoverseestheoperationsandbusinessdevelopmentoftheGroup,theIndependentDirectorsbringtobearobjectiveandindependentviews,adviceandjudgmentoninterests,notonlyoftheCompany,butalsoofshareholdersandstakeholders.

InaccordancetotheConstitutionoftheCompany,atleastone-third(1/3)oftheBoardisrequiredtoretireateveryAnnualGeneralMeetingandbesubjecttore-electionbytheshareholders.AlloftheDirectorsarerequiredtoofferthemselvesforre-election,atleastonceeverythreeyears.NewlyappointedDirectorsshallholdofficeuntiltheNextAnnualGeneralMeeting(“AGM”)andshallthenbeeligibleforre-electionbytheshareholders.

IndependentDirectorsareessentialforprotectingtheinterestsofshareholdersandcanmakesignificantcontributionsto theCompany’sdecisionmakingbybringing in thequalityofdetached impartiality. TheBoard recognises theimportanceofestablishingcriteriaonindependencetobeusedintheannualassessmentofitsIndependentDirectors.ThedefinitiononindependenceaccordswiththeMMLRofBursaSecurities.Atendofthefinancialyearunderreview,twooftheIndependentDirectors,namelyMrWongChieBinandMrTohKianSinghaveservedforacumulativeperiodexceedingnine(9)years.TheNominatingCommitteehaveassessedbothofthemandtherebyrecommendedthattheycontinueinofficeasIndependentNon-ExecutiveDirectorsoftheCompanybasedonthefollowingjustifications:

• TheyhavefulfilledthecriteriaunderthedefinitionofIndependentDirectorsasstatedintheMainMarketListingRequirementsofBursaSecurities;

• Theyhavepossessedvastcommercialexperienceandknowledge thatcomplements theCompany’sboardcomposition,andcontinuetoprovidevaluableinsightsandcontributionstotheBoard;and

• TheyhaveparticipatedinboarddiscussionsandtheyareabletobringindependentandobjectivejudgementstotheBoard.



Board Meetings and Supply of Information to the Board

Supply of, and access to, information

TheBoardissuppliedwithrelevantinformationandreportsonfinancial,operational,corporate,regulatory,businessdevelopmentandauditmatters,bywayofBoardreportsoruponspecificrequests,fordecisionstobemadeonaninformedbasisandforaneffectivedischargeoftheBoard’sresponsibilities.

Timelydisseminationofmeetingagenda,includingtherelevantBoardandBoardCommitteepaperstoallDirectorspriortotheBoardandBoardCommitteemeetingsrespectivelytogiveeffecttoBoarddecisionsandtodealwithmattersarisingfromsuchmeetings,isobserved.Boardmembersarefurnishedonatimelybasiswithpertinentexplanationsand informationon relevant issuesand recommendationsbyManagement. The issuesare thendeliberatedanddiscussedthoroughlybytheBoardpriortodecisionmaking,includingdecisionstodefercertainresolutionswhentheinformationneededtomakeinformeddecisionisinadequate.

Inaddition,BoardmembersareupdatedontheCompany’sactivitiesanditsoperationsonaregularbasis,largelythroughscheduledBoardandBoardCommitteemeetings.AllDirectorshaveaccesstoCompanyinformationonatimelybasisinanappropriatemannerandqualitynecessarytoenablethemtodischargetheirdutiesandresponsibilities.

SeniorManagementoftheGroupandexternaladvisersareinvitedtoattendBoardand/orBoardCommitteemeetingstoprovideadditionalinsightsandprofessionalviews,adviceandexplanationsonspecificitemsonthemeetingagenda.BesidesdirectaccesstoManagement,DirectorsmayobtainindependentprofessionaladviceattheCompany’sexpense,ifconsiderednecessary,infurtheranceoftheirduties.ThisprocedureisformalisedintheCompany’sBoardCharter.

DirectorshaveunrestrictedaccesstotheadviceandservicesoftheCompanySecretarytoenablethemtodischargetheirdutieseffectively. TheBoard is regularlyupdatedandadvisedby theCompanySecretary,who isqualified,experiencedandcompetentonstatutoryandregulatoryrequirements,ontheresultantimplicationsofanychangesinregulatoryrequirementstotheCompanyandDirectorsinrelationtotheirdutiesandresponsibilities.TheCompanySecretary,whooverseesadherencetoBoardpoliciesandprocedures,briefstheBoardontheproposedcontentsandtimingofmaterialannouncementstobemadetoregulators,aswellasanychangestoregulatoryrequirementsthatmayaffecttheCompanyandtheBoard.TheCompanySecretaryattendsallBoardandBoardCommitteemeetingsandensuresthatmeetingsareproperlyconvened,andthataccurateandproperrecordsof theproceedingsandresolutionspassedaretakenandmaintainedaccordingly.TheremovaloftheCompanySecretary,ifany,isamatterfortheBoard,asawhole,todecide.

Board Meetings

TheBoardordinarilymeetsatleastfive(5)timesayear,scheduledwellinadvancebeforetheendoftheprecedingfinancialyeartofacilitatetheDirectorsinplanningtheirmeetingschedulefortheyear.Additionalmeetingsareconvenedwhenurgentandimportantdecisionsneedtobemadebetweenscheduledmeetings.BoardandBoardCommitteepapers,whicharepreparedbyManagement,providetherelevantfactsandanalysisforthereferenceofDirectorstoassisttheminmakinginformeddecisions.Themeetingagenda,relevantreportsandBoardpapersarefurnishedtoDirectorsandBoardCommitteememberswellbeforethemeetingtoallowtheDirectorssufficienttimetostudyforeffectivediscussionanddecisionmakingduringmeetings.AtthequarterlyBoardmeetings,theBoardreviewsthebusinessperformanceoftheGroupanddiscussesmajorstrategic,operational,complianceandfinancialissues.TheChairmanoftheAuditCommitteebriefstheDirectorsateachBoardmeetingthesalientmattersdeliberatedbytheAuditCommitteeandwhichrequiretheBoard’sattentionordirection,includingapproval,asthecasemaybe.AllpertinentissuesdiscussedatBoardmeetingsinarrivingatdecisionsandconclusionsareproperlyrecordedbytheCompanySecretarybywayofminutesofmeetings,whichareconfirmedbytheChairmanatthenextmeeting.



Board Meetings (continued)

TherewereSix(6)Boardmeetingsheldduringthefinancialyearended31December2018,withdetailsofDirectors’attendancesetoutbelow:

Present Directors

Name of Director Attendance

YongKiamSam 6/6 WongChieBin 6/6 TohKianSing 6/6 EricKhooChuanSyn@KhooChuanSyn 6/6 DatukSebastianTingChiewYew 6/6 Former Director

Name of Director Attendance

YongFohChoi (retired on 22 May 2018) 3/3

ItisthepracticeoftheCompanyforDirectorstodevotesufficienttimeandeffortstocarryouttheirresponsibilities.Inaddition, theBoardCharter requiresDirectors tonotify theChairmanbeforeacceptinganynewdirectorship,notwithstandingthattheMMLRofBursaSecuritiesallowsaDirectortositontheboardsoffive(5)listedissuers.Suchnotificationisexpectedtoincludeanindicationoftimethatwillbespentonthenewappointment.

Directors’ Training and Education

TheBoardismindfuloftheimportanceforitsmemberstoundergocontinuoustrainingtobeapprisedofchangestoregulatoryrequirementsandtheimpactsuchregulatoryrequirementshaveontheGroupandDirectors.

AlltheDirectorsoftheCompanyhaveattendedtheMandatoryAccreditationProgrammeconductedbyBursaMalaysiaTrainingSdnBhdwithinthestipulatedtimeframerequiredbytheMMLRofBursaSecurities.

DetailsofthetrainingattendedbyDirectorsoftheCompanyforthefinancialyearunderreviewanduptothedateofthisStatementassetoutbelow:

Name of Director and designation Training topics

YongKiamSam–Chief Executive • AsianOffshoreSupportJournalConference,SingaporeOfficer cum Managing Director, Non-Independent Executive Director, Risk Management Committee Chairman

WongChieBin– Audit Committee • GSTCommonErrorsandMitigatingRisksChairman, Independent Non-Executive • TaxAudit2018:Latest,CompleteandProfessionalSolutionstoWhatDirector NeedstobeDone • TransferPricing2018: CompleteandPracticalPreparationForTransferPricingAudit • NationalTaxConference2018 • NationalTaxSeminar2018 • AccountingforAgricultureSector:PracticalApplicationofMFRS141 • Fair Value Accounting System (IncludingMFRS 13 Fair Value

Measurement)



Directors’ Training and Education (continued)

Name of Director and designation Training topics

TohKianSing–Remuneration Committee • DisputesandpreventionofJointVentureandTransferofShareContractsChairman, Independent Non-Executive • SpecialistAccreditationScheme-ApplicationforSeniorSingaporeLetterDirector ofCreditLawSummit2018 • AccreditedSpecialist/MaritimeShipping • MaritimeandShippingLawCourseforLegalandIndustryPractitioners • 2018InternationalMaritimeArbitrationPracticalSymposium-FromThe

PerspectiveoftheBelt&RoadInitiative

EricKhooChuanSyn@KhooChuan • NationalTaxSeminar2018Syn–Nominating Committee Chairman, Independent Non-Executive Director

DatukSebastianTingChiewYew– • ForeignExposureProgrammeForMembersOfTheSarawakStateIndependent Non-Executive Director LegislativeAssembly,UnitedKingdom

TheDirectorsarenotifiedperiodicallyby theCompanySecretaryon the typesof trainingcoursesavailable in themarketthattheDirectorsmayconsiderattendinginordertoenhancetheirskillsandknowledgeinthedischargeoftheirstewardshiprole.

BOARD COMMITTEES

Toassistinthedischargeofitsstewardshiprole,theBoardhasestablishedBoardCommittees,namelyAuditCommittee(“AC”),NominatingCommittee(“NC”),RemunerationCommittee(“RC”)andRiskManagementCommittee(“RMC”),toexaminespecificissueswithintheirrespectivetermsofreferenceasapprovedbytheBoard,andforthemtoreporttotheBoardtheirrecommendations.Theultimateresponsibilityfordecisionmaking,howeverlieswiththeBoard.EachcommitteeoperatesitsfunctionswithinthetermsandreferencesapprovedbytheBoardwhicharereviewedbytheBoardannually.ThetermsofReferenceofeachcommitteearecontainedintheBoardCharterwhichisavailableforreferenceontheCompany’scorporatewebsiteatwww.asiasealink.com.

Nominating Committee

TheNominatingCommittee, establishedby theBoardwith specific termsof reference,comprises the followingIndependentNon-ExecutiveDirectorsasitsmembers:

• EricKhooChuanSyn@KhooChuanSyn(Chairman);• DatukSebastianTingChiewYew;• TohKianSing;and• WongChieBin.

TheNominatingCommittee isprimarily responsible for recommendingsuitableappointments to theBoard, takingintoconsiderationtheBoardstructure,size,compositionandtherequiredmixofexpertiseandexperiencewhichtheDirectorshouldbringtotheBoard.ItassessestheeffectivenessoftheBoardasawhole,theBoardCommitteesandthecontributionofeachDirector.Whereconsideredappropriate,theNominatingCommitteeconsidersrecommendationofcandidatefordirectorshipbyshareholdersorexistingDirectors.Basedonitstermsofreference,theNominatingCommitteecarriesouttheassessmentprocessregardlessofwhetherthecandidate isfornewappointmentorre-appointment.



Nominating Committee (continued)

ThefinaldecisionontheappointmentofacandidaterecommendedbytheNominatingCommitteerestswiththeBoard.TheCompanySecretaryensuresthatallappointmentsareproperlymadeuponobtainingallnecessaryinformationfromtheDirector.DuringthefinancialyearunderreviewandasatthedateofthisStatement,theNominatingCommitteemettwice(2times),attendedbyallmembers.Duringthemeetings,theNominatingCommitteecarriedoutthefollowingactivitieswithinitstermsofreferenceandreportedtheoutcometotheBoard:

• reviewedanddiscussedtheexistingBoardDiversitypolicy;• reviewedtrainingundertakenbyDirectorsaswellasthosetrainingthatareavailableforDirectorsfortheensuing

year;• discussedthesearchforaBoardChairmanandfemaleDirector;• reviewedtheDirectors’EvaluationForm,BoardSkillsMatrixFormandBoard&BoardCommitteeEvaluationForm

usedintheannualassessmentandevaluationoftheBoard,BoardCommitteesandindividualDirectors.Theseevaluationformstookintoconsiderationthecompetency,experience,character,integrityandtimeavailabilityoftheofficersconcernedaswellastheevaluationcriteriasetoutintherelevantexhibitsoftheCorporateGovernanceGuide–3rdEditiononassessmentoftheBoard,BoardCommitteesandindividualDirectors.ForthepurposeofassessingtheindependenceofIndependentDirectors,thecriteriasetoutinParagraph1.01oftheMMLRofBursawereused;and

• followingtheassessmentoftheBoard,BoardCommitteesandindividualDirectors,recommendedfortheBoard’sconsiderationtomoveforshareholders’approvalthere-appointmentand/orre-electionofthoseDirectorsretiringattheforthcomingAnnualGeneralMeeting.InassessingwhetherornottorecommendretiringDirectorsforre-appointmentorre-electionbyshareholders,theNominatingtookintoconsiderationpertinentevaluationcriteriaprovidedintherelevantexhibitsofCorporateGovernanceGuide–3rdEdition.

WhilstthereisaBoardDiversityPolicy,thereisnospecificpolicythereinonthediversityofitsmembersintermsofgender,ageorethnicityorsetatargettoachieveablendoftheseattributes.TheBoardbelievesthattheCompanyshouldbeappointingDirectorswhohavetherelevantskills,experienceandtimetocontributetowardsrealisingtheCompany’sobjectives.Assuch,infillingcasualvacanciesorappointingadditionalorre-appointingDirectors,theBoard,viatheNominatingCommittee,assessesthecompetency,experience,character,integrityandtimeavailabilityofthecandidatesinrelationtotheneedsoftheGroup.

Remuneration Committee

TheRemunerationCommittee,establishedby theBoardwithspecific termsof reference,comprises the followingmembersasatthedateofthisStatement,whoareexclusivelyIndependentDirectors:

• TohKianSing(Chairman);• DatukSebastianTingChiewYew;• EricKhooChuanSyn@KhooChuanSyn;and• WongChieBin.

TheRemunerationCommitteeisentrustedbytheBoardto:

• establishaformalandtransparentprocedureforsettingapolicyonremunerationofExecutiveDirectorsandSeniorManagementandforfixingtheremunerationpackagesofallDirectorsandSeniorManagementoftheGroup;and

• ensurethatthelevelsofremunerationarecommensuratewiththequalificationsofExecutiveDirectorsandSeniorManagementandaresufficienttoattractandretainthepersonnelrequiredtomanagetheCompany’sbusiness.



Remuneration Committee (continued)

Duringthefinancialyearunderreview,theBoardhadapprovedaRemunerationPolicytorewardmembersoftheBoardandSeniorManagement. TheRemunerationCommitteerecommendstotheBoardtheremunerationofExecutiveDirectors,largelybasedontheirperformanceandalsotheGroup’sperformance.InthecaseofIndependentDirectors,thelevelofremunerationreflectstheexperienceandlevelofresponsibilitiesundertakenbytheIndependentDirectorsconcerned.Inallinstances,thedeliberationsareconductedwiththeDirectorsconcernedabstainingfromdiscussionsontheirindividualremuneration.Duringthefinancialyear,theCommitteemettwice(2)attendedbyallmemberstodeliberateand recommend for theBoard’sconsiderationemployees’basic remuneration (includingbonuses), theremunerationandbonusesofExecutiveDirectorsandDirectors’fees.

DetailsofDirectors’ remuneration (includingbenefits-in-kind) foreachDirectorduring thefinancialyearended31December2018areasfollows:

Directors’ Fee Basic Benefits- Company Subsidiaries Salary in Kind Total (RM) (RM) (RM) (RM) (RM) Executive Director YongFohChoi(retiredon22May2018) 8,269 - 296,400 13,125 317,794YongKiamSam 19,845 - 507,655 7,000 534,500

Non-Executive Director EricKhooChuanSyn@KhooChuanSyn 66,150 - - - -TohKianSing 66,150 - - - -WongChieBin 79,380 - - - -DatukSebastianTingChiewYew 66,150 - - - -

PRINCIPLE B – EFFECTIVE AUDIT AND RISK MANAGEMENT

TheBoardiscommittedtopresentabalancedandmeaningfulassessmentoftheGroup’sfinancialperformanceandprospectsattheendofeachreportingperiodandfinancialyear,primarilythroughthequarterlyannouncementoftheGroup’sresultstoBursaSecurities,theannualfinancialstatementsoftheGroupandCompanyaswellastheChiefExecutiveOfficer’sMessageandManagementDiscussionandAnalysis(MD&A)intheAnnualReport.

PART 1 – AUDIT COMMITTEE

TheAuditCommitee,establishedbytheBoardwithspecifictermsofreference,comprisesthefollowingmembersasatthedateofthisStatement,whoareexclusivelyIndependentDirectors:

• WongChieBin(Chairman);• DatukSebastianTingChiewYew;• TohKianSing;and• EricKhooChuanSyn@KhooChuanSyn.

ThecompositionoftheAuditCommittee,includingitsrolesandresponsibilitiesenshrinedinitstermsofreferenceapprovedbytheBoard,aresetoutintheAuditCommitteeReportincludedinthisAnnualReport.OneofthekeyresponsibilitiesoftheAuditCommitteeinitstermsofreferenceistoensurethatthefinancialstatementsoftheGroupandCompanycomplywithapplicablefinancialreportingstandardsinMalaysia.SuchfinancialstatementscomprisethequarterlyfinancialreportannouncedtoBursaSecuritiesandtheannualstatutoryfinancialstatements.Indischargingthisrole,meetingsarescheduledwithformalitemsontheagendafocusingoninterimandyear-endfinancialreporting,theauditingprocessandrelatedpartytransactions.TherelevantpapersfortheagendaarefurnishedtoCommittee



PART 1 – AUDIT COMMITTEE (continued)

memberswellbefore themeetings.At suchmeetings,questions raisedbymembersof theCommittee tobetterunderstandtheGroup’sfinancialperformanceandsituationarerespondedbytheHeadofGroupFinancebeforetheCommitteerecommendedthefinancialperformanceandreportingtotheBoardforapprovaltoissuetoregulatorsand/orshareholders.

ThetermsofreferenceoftheAuditCommitteeincludeapolicyonthetypesandnatureofnon-auditservicespermittedtobeprovidedbytheexternalauditorsoftheCompanysoasnottocompromisetheirindependenceandobjectivity.Inassessingtheindependenceofexternalauditors,theAuditCommitteeobtainsassurancefromtheexternalauditors,confirmingthattheyare,andhavebeen,independentthroughouttheconductoftheauditengagementwiththeCompanyinaccordancewiththeindependencecriteriasetoutintheBy-LawsoftheMalaysianInstituteofAccountants(“MIA”).Forthefinancialyearunderreview,thisassurancewasprovidedbytheexternalauditorswhentheypresentedtheirauditplantotheAuditCommittee,confirmingthattheycompliedwiththeBy-LawsofMIAonprofessionalethics,conductandpracticewhichaddressed,amongstothers,thecriteriaon,andthreatsagainst,professionalindependence.

Duringthefinancialyearunderreview,theAuditCommitteeassessedtheperformanceoftheexternalauditorsandtheinternalauditfunctionlargelyintermsoftheirqualityandtimelinessofservicestotheGroupbeforerecommendingtoBoardforrenewalorterminationoftheirservices,asthecasemaybe.

PART II – RISK MANAGEMENT COMMITTEE

TheRiskManagementCommitee,establishedbytheBoardwithspecifictermsofreference,comprisesthefollowingmembersasatthedateofthisStatement:

• YongKiamSam(Chairman);

• DatukSebastianTingChiewYew;

• EricKhooChuanSyn@KhooChuanSyn;

• WongChieBin;and

• MrTohKianSing.

RiskManagementCommitteewhichisentrustedtoformaliseariskmanagementprocesstoidentify,evaluate,control,reportandmonitorsignificantrisksfacedbytheGroup.Periodicreportingofrisksidentifiedandevaluated,whicharescoredfortheirlikelihoodofoccurrenceandtheimpactthereofbasedonpre-setriskmeasuringmetrics,includingmitigatingmeasures,ismadetotheAuditCommitteeaspartofaholisticapproachonriskmanagement,todevelopacomprehensiveEnterpriseRiskFrameworktoenhancetheGroup’sexistingriskmanagementactivitiesandinitiatives.PersonneloftheGrouphavebeentrainedtoperiodicallyidentifyandevaluaterisks,supportedbypertinentevidencecorroboratingtheriskprofilesofvariousbusinessunits,andultimatelytheGroupriskprofile,forupwardreportingtotheRiskManagementCommittee.TheriskprofileoftheGroup,followingareviewbytheRiskManagementCommitteeistabledtotheAuditCommitteeandquestions,ifany,arefieldedbytheHeadofCompliance,whoalsoactsastheGroup’sRiskCoordinator.

TheinternalauditfunctionoftheGroupisoutsourcedtoanindependentprofessionalfirm,namelyKPMGManagement&RiskConsultingSdn.Bhd(150059-H),whoundertakesregularreviewsoftheadequacyandoperatingeffectivenessoftheGroup’ssystemofinternalcontrols.TheinternalauditfunctionreportsdirectlytotheAuditCommittee.

FurtherdetailsontheactivitiesoftheinternalauditfunctioncanbeseenintheStatementonRiskManagementandInternalControlincludedinthisAnnualReport.



PRINCIPLE C – INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS

PART 1 – COMMUNICATION WITH STAKEHOLDERS

TheBoardrecognizestheimportanceofbeingtransparentandaccountabletotheCompany’sinvestorsand,assuch,hasvariouschannelstomaintaincommunicationwiththem.ThevariouschannelsarethroughthequarterlyannouncementsonfinancialresultstoBursaSecurities,relevantannouncementsandcirculars,whennecessary,theAnnualandExtraordinaryGeneralMeetingsandthroughtheGroup’swebsite,www.asiasealink.comwhereshareholderscanaccesspertinentinformationconcerningtheGroup.

TheBoardisawareoftheneedtoestablishcorporatedisclosurepoliciesandprocedurestoenablecomprehensive,accurateand timelydisclosures relating to theCompanyand its subsidiaries tobemade to the regulators,shareholdersandstakeholders.Accordingly,theBoardhas,duringthefinancialyearunderreview,formalisedpertinentpoliciesandproceduresoncorporatedisclosurenotonlytocomplywiththedisclosurerequirementsasstipulatedintheMMLRofBursaSecurities,butalsoidentifythepersonsresponsibletoapproveanddisclosematerialinformationtotheregulators,shareholdersandstakeholders.TheCorporateDisclosurePoliciesandProcedures,whicharesubjecttoannualreview,setout,amongstothers,thetypesofactivities/transactionsthatrequireimmediateannouncementtotheregulators,protocolondisclosureofinformation,spokespersonfortheGroupandprocedurestobefollowedifissuedbyregulatorswithanoticeonunusualmarketactivities.

Toaugmenttheprocessofdisclosure,theBoardhasearmarkedadedicatedsectionforcorporategovernanceon theCompany’swebsitewhere informationon theCompany’sannouncements to the regulators, rightsofshareholders,theCompany’sAnnualReport,etc.,maybeaccessed.

PART II – CONDUCT OF GENERAL MEETINGS

Notice of Annual General Meetings

TheBoardalwaysencouragetheshareholderstoattendtheCompany’sgeneralmeetings,particularlytheAnnualGeneralMeeting(“AGM”),whichistheprincipalforumforshareholderdialogue,allowsshareholderstoreviewtheGroup’sperformanceviatheCompany’sAnnualReportandposequestionstotheBoardforclarification.AttheAGM,shareholdersparticipateindeliberatingresolutionsbeingproposedorontheGroup’soperationsingeneral.AtthelastAGM,alldirectors,companysecretaryandExternalAuditorwerepresentinpersons.

TheNoticeofAGMiscirculatedatleasttwenty-eight(28)daysbeforethedateofmeetingtoshareholdersandwaspublished inanationaldailynewspaper. Itemsofspecialbusiness includedin theNoticeofAGMwasaccompaniedbyanexplanationoftheproposedresolution.

TheNoticeofupcomingAGMin2019willbesenttwenty-eight(28)daysinadvancetoenableshareholderstomakeadequatepreparation.Shareholderswhoareunabletoattendpersonallyareallowedtoappointproxy/proxiestoattend,participate,speakandvoteontheirbehalfatthe11thAGM,on21May2019.

Poll Voting

TheBoardismindfulofthepollvotingrequirementsunderParagraph8.29AoftheListingRequirementsofBursaSecurities.All theresolutionssetout intheNoticeof11thAGMarevotedbywayofapoll. AnindependentscrutineerisappointedtovalidatethevotescastattheAGM.

TheoutcomeofallresolutionstabledattheAGMwillbeannouncedtoBursaSecuritiesonthesamedayofthemeeting.

This Statement is issued in accordance with a resolution of the Board dated 9 April 2019.



ADDITIONAL COMPLIANCE INFORMATION

Utilisation of ProceedsDuringthefinancialyear,therewerenoproceedsraisedfromanycorporateproposal.

Share BuybacksTheCompanydidnotcarryoutanysharebuy-backsduringthefinancialyear.

Options, Warrants or Convertible SecuritiesTherewasnoexerciseofOptionsorConvertibleSecuritiesorconversionofwarrantsduringthefinancialyear.

American Depository Receipt (“ADR”) or Global Depository Receipt (“GDR”) ProgrammeTheCompanydidnotsponsoranyADRorGDRprogrammeduringthefinancialyear.

Imposition of Sanctions/PenaltiesTherewerenomaterialsanctionorpenaltiesimposedontheCompanyanditssubsidiaries,Directorsormanagementbytherelevantregulatorybodiesduringthefinancialyear.

Audit FeesTheamountofauditfeespaidandpayabletoexternalauditorsbytheCompanyandtheGroupforthefinancialyearended31December2018amountedtoRM64,000.00andRM233,630.00respectively.

Non-Audit FeesTheamountofnon-audit feespaidandpayabletoexternalauditorsbytheGroupfor thefinancialyearended31December2018amountedtoRM45,700.00.

Variation in ResultsThereisnomaterialvariancebetweenthefinancialresultsandtheunauditedresultspreviouslymadeforthefinancialyearended31December2018.

Profit GuaranteeTherewasnoprofitguaranteegivenbytheCompanyduringthefinancialyear.

Material ContractsTherewerenomaterialcontractsoutsidetheordinarycourseofbusinessenteredintobytheCompanyanditssubsidiariesinvolvingDirector’sandmajorshareholder’sinterestwhichwerestillsubsistingattheendofthefinancialyearorenteredintosincetheendofthepreviousfinancialyear.

Revaluation of Landed Properties TheCompanyanditssubsidiariesdidnotadoptanyrevaluationpolicyonlandedpropertiesduringthefinancialyear.

Profit Forecast VarianceTherewasnoprofitforecastissuedinrespectofthefinancialresultended31December2018.

Recurrent related Party TransactionsTherelatedpartytransactionsaredisclosedinpages95to96ofthisannualreport.



SustainabilityStatement

SealinkInternationalBerhad(“Company”)presentsitsSustainabilityStatementpublishedinlinewithMainMarketListingRequirements(“MMLR”)ofBursaSecuritiesinCompanyannualreportforthefinancialyearended31December2018(“FYE2018”).

TheBoardofDirectors(“Board”)ispleasedtodemonstrateourcommitmenttocreatelong-termsustainablevalueandbusinessgrowthtoachieveourstrategicobjectivesandenhanceshareholdersvalueinthelongterm.Weundertakedevelopmentsthataresocially,economicallyandenvironmentallyconduciveforasustainablelong-termfutureandthatarematerialtoourbusinessoperations.

Wearecommittedtocontinuallyimprovingtheintegrationofsustainabilityintoourworkingenvironmentandbusinessprocesses.Oursustainabilitypolicyisbaseduponthefollowingprinciples:

• toobserveandcomplywithallrelevantlegislations,regulationsandguidelinesissuedbyregulators;• toconsidersustainabilityissuesandintegratetheseconsiderationsintoourbusinessdecisions;and• topromoteandenableallemployeestobeawareof,andcommittedto,implementingsustainabilityactivities

takingintoconsiderationtheenvironment,socialandgovernancefactors.

Tooperateonasustainablebasis,wefocusourattentiononourkeyimpactareas.Weemploybothcorporatestrategyandfeedbackfrominternalandexternalstakeholderstodefinetheseareasoffocus,namely,environment,socialandgovernancefactors.

STAKEHOLDERS’ ENGAGEMENT

Inbuildinglong-termbusinessgrowth,itisessentialtounderstandandberesponsivetothestakeholders’concernsorexpectationstotheCompany.Wehaveidentifiedthekeystakeholdersrelevanttoouroperationsanddifferentplatformswillbeusedtoengagewithallthedifferentstakeholdergroups,asindicatedinthetablebelow.

Stakeholders Engagement Platforms

Shareholders • AnnualGeneralMeeting • AnnualReport • QuarterlyReports GovernmentandRegulators • Regulatoryrequirements Clients(Customers) • Survey • Customerengagement Management • Meetings Employees • Internalandexternalstafftrainings • Meetings • Health,SafetyandEnvironment’sDay Community • Donations • Companywebsite


ENVIRONMENT SUSTAINABILITY

Wearecommittedtoidentifying,managingandminimisingadverseenvironmentalimpactofourbusinessoperationsthroughthefollowinginitiatives:

• ensuringoperationsandservicesaresafeforouremployees,consumersandtheenvironmentwhilstcontributingtowardsreducingtheintensityofgreenhousegasemissionsandminimisingpollutionofenvironment.RecognisingtheneedtoreduceenergyconsumptionandCO2emission,Managementhasswitchedmostofthegrouplightingsystemstolight-emittingdiode(LED)lampswherepossible.Inaddition,alltheproductswebuyareasbestosfreeandwherepossiblewebuybiodegradableandozoneprotectionproducts.Managementisalsominimisingtheuseofpaperinprintviascanningofdocumentsandonlyprintwhennecessary.TheGroup’senvironmentalpolicyto“go-green” iscarriedoutonanongoingbasistoavoidandreducewasteandusingrecyclingandenvironmentally-friendlydisposalmethodsinstead.WehaveaproceduretoensureproperhandlinganddisposalofwastegeneratedfromvesselandinaccordancewithMARPOLAnnexI&VandEnvironmentalQualityAct(EQA)1974.

• developinginnovativeandpracticalsolutionstoenvironmentalissueswiththegoalofmitigatingorpreventingadverseenvironmentalimpactarisingfromourservicesandprocesses.

WeareaccreditedbytheMarineDepartmentofMalaysiaandmaintainaSafetyManagementSystem(SMS)forrunningourMarineOperations.WestrictlycomplywithTheInternationalConventionforthePreventionofPollutionfromShips(MARPOL).TheSMSsystemensuresthat:

• allactivitiesarecompliantwiththelaw;• HSEmattersaremanagedasacriticalbusinessactivity;• HSEistheresponsibilityofallemployees(managersandindividuals);and• anyonecan‘StopWork’orintervene,whereunsafeconditionsarepresentorunsafeactivitiesareobserved.

ItistheobligationofeveryonetoactimmediatelytocorrectanysituationthatdeviatesfromourpolicyorSMS.Wemustensurethatthesestandardsarenevercompromised.

SOCIAL SUSTAINABILITY 1. Community

RecognisingtheimportanceoftheCommunityhasonitsoperations,theGroup,duringthefinancialyearunderreview,hasdonatedfundstothoseinneed,namely,theMalaysianRedCrescentSociety(“MRCS”)dialysiscentre,PalliativeCareAssociationofMiriandotherdeservingorganisations.TheGroupalsoprovidesopportunitiesforundergraduatestudentstogainexposureonrealprojectsthroughinternshipprograms.Thetrainingprovidesthestudentspersonalgrowthandexposuretodifferentjobopportunitiesaspartofourinitiativeofgivingbacktothelocalcommunity.

2. Training and Development

Werecogniseourpeople’sskills,professionalismandthevaluetheycontributetotheGroup.WealsoinvestinhumanresourcecapitalthroughemployeetraininganddevelopmentsuchasOffshorePetroleumIndustryTrainingOrganizationtrainingandotherrelevanttraining.

Sustainability Statement (continued)


3. Safety and Health

TheBoardismindfuloftheneedtoensureasafeworkingenvironmentforallemployees.Pertinentpoliciesonhealthandsafetyhavebeenformalisedinwritinganddisseminatedtotheworkforceforcompliance.

TheGroupwasproudlyawardedbyoilmajorsforthreecommendableachievements,ie,CarigaliHess,2017SafetyAwardforPlatinumCategory;BruneiShellPetroleumCo.SdnBhdforbestperformingvessel–Q3/2018;andSapuraEnergyExploration&ProductionSarawakforCrewexceptionalworkdonefortheCompany.

Ourvisionis‘GoalZeroIncident’workenvironmentandouraspirationistobea‘valuecreatingpartner’toourclients(customers),shareholdersandcommunitieswhereweworkandlive.Toachieveourvisionandaspirations,theCompanyiscommittedtoaHealth,SafetyandEnvironment(HSE)policywherebywemanageHSEmattersasacriticalbusinessactivity,pursuethegoalof‘noharmtopeopleandprotecttheenvironment’.Inadditiontotheabove,weprovideandensuresafetyworkingenvironmentonboardshipbyestablishingandsafeguardingallidentifiedrisksandpromotethesafetyconsciousattitudeamongalltheemployeesandalsocontinuouslyimprovingtheirsafetymanagementskillsthroughtraining,meetings,forums,discussionsandtalks.

TheGroup’soperationspersonnelaswellascontractworkersareprovidedwith,andarerequiredtowearpersonalprotectiveequipmentwhencarryingouttheirworkattheshipyard,onvesselsoratthewarehouseinordertoachievezerolosstimeinjuryorfatalityarisingfromworkplaceaccidents.Apartfromtheneedtobebriefedonsafetyissuesuponarrival,visitorstotheGroup’sshipyardandvesselsarealsorequiredtoputonsafetyhelmetsandbootsbeforeventuringtothesites.Inaddition,standardproceduresareobservedbypersonnel,includingthoseofcontractors,whohandleflammableitems,especiallyattheshipyardandonboardvessels.

TheGrouphasalsoorganizedanin-houseHSEDaywhichcoversawarenessrelatingtohazardsattheworkplace,healthtalkandfiredrill,whichwasconductedincollaborationwithanoilmajor.

TheGrouphasappointedaSafetyOfficer,whoisresponsibleforoverseeingmattersconcerningsafetyandhealthofemployees.ASafetyandHealthCommitteehasalsobeenestablishedtodeliberateonissuesrelatingtohazardsattheworkplacesothatappropriateremedialmeasuresmaybetakentoaddressanygaps,allwithaviewofsustainingasafeworkingenvironmentintheGroup.

RecognisingtheimportanceofHSEasoneoftheGroup’sbusinessstrategy,acopyof“Health,Safety,EnvironmentandSecurityPolicy”canbedownloadedfromtheCompany’swebsiteatwww.asiasealink.com.Throughthesepoliciesandguidelines,theGroupaimstofurtherimprovesafetyawarenessamongallemployees.

ECONOMIC AND GOVERNANCE SUSTAINABILITY

Wefocusonbuildingsustainablerelationshipswithstakeholdersandutiliseourresourcestocontributetoeconomicgrowthandbringvaluetoourstakeholders.TheBoardplacesgreatimportanceoncorporategovernanceandbelievesinthecorrelationbetweengoodgovernanceandperformance.TheBoardhasformalizedinwritingaCodeofConductandanEmployeeHandbook thatemphasizes,amongstothers,zero tolerance forunethicalpractices.TheGroupconductsbusinessinanhonestandethicalwaytoprotectallourstakeholders.TheCodeofConduct,whichappliesalsotoDirectors,andtheGroup’swhistle-blowingpoliciesandprocedureshavebeenuploadedtotheCompany’swebsite.

TheGrouphasalsobeenprogressivelydevelopingpertinentpoliciesandproceduresaddressingitskeybusinessoperationstoensuretheadequacyandintegrityoftheGroup’sinternalcontrolsystemandmanagementsystems.TheyguideandalignwithcorporateinitiativestheGrouphasimplementedtoaddressindustrychallengesandhelpusachieveoperationalexcellence.

Sustainability Statement (continued)


Directors’ResponsibilityStatementfortheAuditedFinancialStatement

TheDirectorsarerequiredbytheCompaniesAct2016(CA)topreparethefinancialstatementsforeachfinancialyearwhichhavebeenmadeoutinaccordancewiththeapplicableMalaysianFinancialReportingStandards(MFRSs),theInternationalFinancialReportingStandards(IFRs)andtherequirementsoftheCAinMalaysia.

TheDirectorsareresponsibletoensurethatthefinancialstatementsgiveatrueandfairviewofthestateofaffairsofthegroupsandoftheCompanyattheendofthefinancialyear,andoftheresultsandcashflowsoftheGroupandoftheCompanyforthefinancialyear.

Inpreparingthefinancialstatements,theDirectorshave:

• Adoptedappropriateaccountingpoliciesandappliedthemconsistently;

• Madejudgmentsandestimatesthatarereasonableandprudent;and

• Preparedthefinancialstatementsonagoingconcernbasis.

TheDirectorsareresponsibletoensurethattheGroupandtheCompanykeepaccountingrecordswhichdisclosethefinancialpositionoftheGroupandoftheCompanywithreasonableaccuracy,enablingthemtoensurethatthefinancialstatementscomplywiththeCA.

TheDirectorsareresponsiblefortakingsuchstepsasarereasonablyopentothemtosafeguardtheassetsoftheGroupandoftheCompany,andtodetectandpreventfraudandotherirregularities.

Directors’ Report 38 – 40

Statement by Directors 41

Statutory Declaration 41 Independent Auditors’ Report 42 – 45 Statements of Profit or Loss 46 and Other Comprehensive Income

Statements of Financial Position 47

Statements of Changes in Equity 48 – 49

Statements of Cash Flows 50 – 51

Notes to the Financial Statements 52 – 107

Financial Statementsand Reports


Directors’Report

TheDirectorshavepleasureinpresentingtheirreporttogetherwiththeauditedfinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended31December2018.

Principal activities

TheCompanyisprincipallyengagedininvestmentholding.TheprincipalactivitiesofthesubsidiariesaredisclosedinNote15tothefinancialstatements.

Results

Group Company RM RM

Lossnetoftax (20,416,205) (2,848,677)

Lossattributableto:OwnersoftheCompany (20,416,205) (2,848,677)

Therewerenomaterialtransferstoorfromreservesorprovisionsduringthefinancialyearotherthandisclosedinthefinancialstatements.

IntheopinionoftheDirectors,theresultsoftheoperationsoftheGroupandoftheCompanyduringthefinancialyearwerenotsubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature.

Directors

ThenamesoftheDirectorsoftheCompanyinofficesincethebeginningofthefinancialyeartothedateofthisreportare:

YongFohChoi(Resigned on 22 May 2018)YongKiamSamWongChieBinEricKhooChuanSyn@KhooChuanSynTohKianSingDatukSebastianTingChiewYew

TheinformationofDirectorsofsubsidiariesisavailableattheCompany’sregisteredofficeandthesaidinformationisdeemedincorporatedhereinbysuchreferenceandmadeaparthereof.

Directors’ benefits

Neitherattheendofthefinancialyear,noratanytimeduringthatyear,didtheresubsistanyarrangementtowhichtheCompanywasaparty,wherebytheDirectorsmightacquirebenefitsbymeansoftheacquisitionofsharesinordebenturesoftheCompanyoranyotherbodycorporate.

Sincetheendofthepreviousfinancialyear,noDirectorhasreceivedorbecomeentitledtoreceiveabenefit(otherthanbenefitsincludedintheaggregateamountofemolumentsreceivedordueandreceivablebytheDirectorsorthefixedsalaryofafull-timeemployeeoftheCompanyasshowninNote10tothefinancialstatements)byreasonofacontractmadebytheCompanyorarelatedcorporationwithanyDirectororwithafirmofwhichaDirectorisamember,orwithacompanyinwhichaDirectorhasasubstantialfinancialinterest,exceptasdisclosedinNote29tothefinancialstatements.

DetailsofDirectors’remunerationsaredisclosedinNote10tothefinancialstatements.


Directors’ Report (continued)

Directors’ interests

AccordingtotheregisterofDirectors’shareholdings,theinterestsofDirectorsinofficeattheendofthefinancialyearinsharesintheCompanyanditsrelatedcorporationsduringthefinancialyearwereasfollows:

Number of Ordinary Shares At At 1 January Acquired Sold 31 December 2018 2018The Company:

Direct interest YongKiamSam 67,382,399 - - 67,382,399EricKhooChuanSyn@KhooChuanSyn 30,000 - - 30,000WongChieBin 90,000 - - 90,000DatukSebastianTingChiewYew 137,500 - - 137,500

Deemed interest through holding companyYongKiamSam 259,080,800 - - 259,080,800

Holding company:

Direct interestYongKiamSam 500,000 - - 500,000

YongKiamSambyvirtueofhisinterestinsharesintheCompanyisalsodeemedinterestedinsharesofalltheCompany’ssubsidiariestotheextenttheCompanyhasaninterest.

TohKianSingdoesnothaveanyinterestinsharesintheCompanyoritsrelatedcorporationsduringthefinancialyear.

Indemnification of Directors and officers

TheGroupmaintainedaDirectorsandofficersliabilityinsuranceforpurposeofSection289oftheCompaniesAct2016,throughouttheyear,whichprovidesappropriateinsurancecoverfortheDirectorsandofficersoftheGroup.ThetotalamountofinsurancepremiumeffectedforanyDirectorsandofficersoftheGroupduringthefinancialyearwasRM60,000.TheDirectorsandofficersshallnotbeindemnifiedbysuchinsuranceforanydeliberatenegligence,fraud,intentionalbreachoflaworbreachoftrustprovenagainstthem.

Other statutory information

a) BeforethestatementsofprofitorlossandothercomprehensiveincomeandstatementsoffinancialpositionoftheGroupandoftheCompanyweremadeout,theDirectorstookreasonablesteps:

i) toascertainthatproperactionhadbeentakeninrelationtothewritingoffofbaddebtsandthemakingofprovisionfordoubtfuldebtsandsatisfiedthemselvesthatallknownbaddebtshadbeenwrittenoffandthatadequateprovisionhadbeenmadefordoubtfuldebts;and

ii) toensurethatanycurrentassetswhichwereunlikelytorealisetheirvalueasshownintheaccountingrecordsintheordinarycourseofbusinesshadbeenwrittendowntoanamountwhichtheymightbeexpectedsotorealise.


Directors’ Report (continued)

Other statutory information (continued)

b) Atthedateofthisreport,theDirectorsarenotawareofanycircumstanceswhichwouldrender:

i) theamountwrittenoff forbaddebtsor theamountof theprovision fordoubtfuldebts in thefinancialstatementsoftheGroupandoftheCompanyinadequatetoanysubstantialextent;and

ii) thevaluesattributedtocurrentassetsinthefinancialstatementsoftheGroupandoftheCompanymisleading. c) Atthedateofthisreport,theDirectorsarenotawareofanycircumstanceswhichhavearisenwhichwouldrender

adherencetotheexistingmethodofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate.

d) Atthedateofthisreport,theDirectorsarenotawareofanycircumstancesnototherwisedealtwithinthisreportorfinancialstatementsoftheGroupandoftheCompanywhichwouldrenderanyamountstatedinthefinancialstatementsmisleading.

e) Atthedateofthisreport,theredoesnotexist:

i) anychargeontheassetsoftheGrouporoftheCompanywhichhasarisensincetheendofthefinancialyearwhichsecurestheliabilitiesofanyotherperson;or

ii) anycontingentliabilityoftheGrouporoftheCompanywhichhasarisensincetheendofthefinancialyear.

f) IntheopinionoftheDirectors:

i) nocontingentorotherliabilityhasbecomeenforceableorislikelytobecomeenforceablewithintheperiodoftwelvemonthsaftertheendofthefinancialyearwhichwillormayaffecttheabilityoftheGrouporoftheCompanytomeettheirobligationswhentheyfalldue;and

ii) noitem,transactionoreventofamaterialandunusualnaturehasarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportwhichislikelytoaffectsubstantiallytheresultsoftheoperationsoftheGrouporoftheCompanyforthefinancialyearinwhichthisreportismade.

Auditors

Theauditors,Ernst&Young,haveexpressedtheirwillingnesstocontinueinoffice.Auditors’remunerationsisdisclosedinNote8tothefinancialstatements.

Totheextentpermittedbylaw,theCompanyhasagreedtoindemnifyitsauditors,Ernst&Young,aspartofthetermsofitsauditengagementagainstclaimsbythirdpartiesarisingfromtheaudit(foranunspecifiedamount).NopaymenthasbeenmadetoindemnifyErnst&Youngduringorsincethefinancialyear.

SignedonbehalfoftheBoardinaccordancewitharesolutionoftheDirectorsdated12April2019

Yong Kiam Sam Wong Chie Bin


StatementbyDirectorsPursuant to Section 251(2) of the Companies Act 2016

We,Yong Kiam SamandWong Chie Bin,beingtwooftheDirectorsofSealink International Berhad,doherebystatethat,intheopinionoftheDirectors,theaccompanyingfinancialstatementssetoutonpages46to107aredrawnupinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct2016inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31December2018andoftheirfinancialperformanceandcashflowsfortheyearthenended.

SignedonbehalfoftheBoardinaccordancewitharesolutionoftheDirectorsdated12April2019

Yong Kiam Sam Wong Chie Bin

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

I,Angelia Chong Pei Cheng, being theOfficerprimarily responsible for the financialmanagement ofSealink International Berhad,dosolemnlyandsincerelydeclarethattheaccompanyingfinancialstatementssetoutonpages46to107areinmyopinioncorrect,andImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

SubscribedandsolemnlydeclaredbytheabovenamedAngelia Chong Pei Cheng at MiriintheStateofSarawakon12April2019.

Angelia Chong Pei Cheng(MIA19359)

Beforeme,

CommissionerforOathsPuk LiLi @ Puk Lee LinLicenseNo:Q024


IndependentAuditors’Reportto the Members of Sealink International Berhad – 800981-X (Incorporated in Malaysia)

Report on the Audit of the Financial Statements

Opinion

WehaveauditedthefinancialstatementsofSealinkInternationalBerhad,whichcomprisestatementsoffinancialpositionasat31December2018oftheGroupandoftheCompany,andthestatementsofprofitorlossandothercomprehensiveincome,statementsofchangesinequityandstatementsofcashflowsoftheGroupandoftheCompanyfortheyearthenended,andnotestothefinancialstatements,includingasummaryofsignificantaccountingpolicies,assetoutonpages46to107.

Inouropinion,theaccompanyingfinancialstatementsgiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31December2018,andoftheirfinancialperformanceandtheircashflowsfortheyearthenendedinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct2016inMalaysia.

Basis for Opinion

WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysiaandInternationalStandardsonAuditing.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditors’ResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

Independence and Other Ethical Responsibilities

WeareindependentoftheGroupandoftheCompanyinaccordancewiththeBy-Laws(onProfessionalEthics,ConductandPractice)oftheMalaysianInstituteofAccountants(“By-Laws”)andtheInternationalEthicsStandardsBoardforAccountants’CodeofEthics forProfessionalAccountants (“IESBACode”),andwehave fulfilledourotherethicalresponsibilitiesinaccordancewiththeBy-LawsandtheIESBACode.

Key Audit Matters

Keyauditmattersarethosemattersthat,inourprofessionaljudgement,wereofmostsignificanceinourauditofthefinancialstatementsoftheGroupandoftheCompanyforthecurrentyear.WehavedeterminedthattherearenokeyauditmatterstocommunicateinourreportonthefinancialstatementsoftheCompany.ThekeyauditmattersfortheauditofthefinancialstatementsoftheGrouparedescribedbelow.ThesematterswereaddressedinthecontextofourauditofthefinancialstatementsoftheGroupasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Foreachmatterbelow,ourdescriptionofhowourauditaddressedthematterisprovidedinthatcontext. WehavefulfilledtheresponsibilitiesdescribedintheAuditors’responsibilitiesfortheauditofthefinancialstatementssectionofourreport,includinginrelationtothesematters.Accordingly,ourauditincludedtheperformanceofproceduresdesignedtorespondtoourassessmentoftherisksofmaterialmisstatementofthefinancialstatements.Theresultsofourauditprocedures,includingtheproceduresperformedtoaddressthemattersbelow,providethebasisofourauditopinionontheaccompanyingfinancialstatements.


Independent Auditors’ Report (continued)

Recoverability of carrying amounts of vessels

Inviewofthedepressedeconomicconditionsintheoffshoremarinesector,theGroupperformedanassessmentontherecoverableamountofthevesselsstatedatRM406,953,900asat31December2018whichrepresented69.85%oftheGroup’stotalassets,todeterminewhetherthecarryingvalueofthesevesselsarerecoverable.

Theestimatedrecoverableamountisdeterminedbasedonthehigherofanasset’svalueinuse(“VIU”)andfairvaluelesscoststosell(“FV”).Therecoverableamountwascomparedtothecarryingvalueofeachassetwithidentifiedimpairmenttriggers.If therecoverableamount is lower,thecarryingvalueoftheasset isreducedtoitsestimatedrecoverableamountandthedifferenceisregardedasanimpairmentloss.

TheGroupconsideredeachvesselasacash-generatingunit(“CGU”).ValueinuseisthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheCGU.TheFVrepresentsanestimateoftheamountreceivedintheeventthevesselissoldonawillingbuyerandawillingsellerbasis.TheFVonthevesselswerebasedonvaluationbyanindependentvaluer.

Basedontheoutcomeoftheimpairmentassessment,noimpairmentlossisrecognisedinthestatementsofprofitorlossandothercomprehensiveincomeastherecoverableamountofthevesselsarehigherthanthecarryingamount.

Theimpairmentassessmentofthevesselsaresignificanttoourauditduetoitsmagnitudeandtheuseofsignificantjudgementindeterminingtherecoverableamount.Ourauditproceduresincludedevaluatingmanagementassessmentofimpairmentindicatorsforvessels.Wealsoevaluatedthecompetence,capabilitiesandobjectivityoftheexternalvaluerandobtainedanunderstandingofthevaluationmodelusedbyhim.WecomparedthevaluationwithrecenttransactionsoftheGroupinvolvingothersimilarvessels.Inaddition,weevaluatedtheadequacyoftheGroup’sdisclosuresregardingtheimpairmentofthesevesselsasdisclosedinNote2.9,Note3(b)andNote13tothefinancialstatements.

Information Other than the Financial Statements and Auditors’ Report Thereon

TheDirectorsoftheCompanyareresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedintheannualreport,butdoesnotincludethefinancialstatementsoftheGroupandoftheCompanyandourauditors’reportthereon.

OuropiniononthefinancialstatementsoftheGroupandoftheCompanydoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.

Inconnectionwithourauditof thefinancialstatementsof theGroupandof theCompany,our responsibility is toreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsoftheGroupandoftheCompanyorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.

If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.



Responsibilities of the Directors for the Financial Statements

TheDirectorsof theCompanyareresponsible for thepreparationoffinancialstatementsof theGroupandof theCompanythatgiveatrueandfairviewinaccordancewithMalaysianFinancialReportingStandards,InternationalFinancialReportingStandardsandtherequirementsoftheCompaniesAct2016inMalaysia.TheDirectorsarealsoresponsibleforsuchinternalcontrolastheDirectorsdetermineisnecessarytoenablethepreparationoffinancialstatementsoftheGroupandoftheCompanythatarefreefrommaterialmisstatement,whetherduetofraudorerror.

InpreparingthefinancialstatementsoftheGroupandoftheCompany,theDirectorsareresponsibleforassessingtheGroup’sandtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlesstheDirectorseitherintendtoliquidatetheGrouportheCompanyortoceaseoperations,orhavenorealisticalternativebuttodoso.

Auditors’ Responsibilities for the Audit of the Financial Statements

OurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsoftheGroupandoftheCompanyasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditors’reportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithapprovedstandardsonauditinginMalaysiaandInternationalStandardsonAuditingwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

AspartofanauditinaccordancewithapprovedstandardsonauditinginMalaysiaandInternationalStandardsonAuditing,weexerciseprofessionaljudgementandmaintainprofessionalscepticismthroughouttheaudit.Wealso:

• IdentifyandassesstherisksofmaterialmisstatementofthefinancialstatementsoftheGroupandoftheCompany,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

• Obtainanunderstandingof internalcontrolrelevanttotheaudit inordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheGroup’sandtheCompany’sinternalcontrol.

• EvaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebytheDirectors.

• ConcludeontheappropriatenessoftheDirectors’useofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheGroup’sortheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditors’reporttotherelateddisclosuresinthefinancialstatementsoftheGroupandoftheCompanyor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditors’report.However,futureeventsorconditionsmaycausetheGrouportheCompanytoceasetocontinueasagoingconcern.


Auditors’ Responsibilities for the Audit of the Financial Statements (continued)

• Evaluatetheoverallpresentation,structureandcontentofthefinancialstatementsoftheGroupandoftheCompany,includingthedisclosures,andwhetherthefinancialstatementsoftheGroupandoftheCompanyrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

• Obtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithin theGrouptoexpressanopiniononthefinancialstatementsof theGroup.Weareresponsible for thedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.

WecommunicatewiththeDirectorsregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

WealsoprovidetheDirectorswithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

FromthematterscommunicatedwiththeDirectors,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsoftheGroupandoftheCompanyforthecurrentyearandarethereforethekeyauditmatters.Wedescribethesemattersinourauditors’reportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.

Report on other legal and regulatory requirements

InaccordancewiththerequirementsoftheCompanyAct2016inMalaysia,wereportthatthesubsidiariesofwhichwehavenotactedasauditors,aredisclosedinNote15tothefinancialstatements.

Other matters

ThisreportismadesolelytothemembersoftheCompany,asabody,inaccordancewithSection266oftheCompaniesAct2016inMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

Ernst & Young Yong Nyet YunAF:0039 02708/04/2020JCharteredAccountants CharteredAccountant

Miri,Malaysia12April2019



StatementsofProfitorLossandOtherComprehensiveIncomefor the financial year ended 31 December 2018

Group Company Note 2018 2017 2018 2017 RM RM RM RM

Revenue 4 69,787,790 75,184,805 1,936,087 2,498,822

Costofsales (86,837,009) (85,623,770) - -

Gross (loss)/profit (17,049,219) (10,438,965) 1,936,087 2,498,822

Otherincome 5 24,440,053 4,641,228 48,016 221,363Administrativeexpenses (15,951,020) (20,382,872) (2,957,081) (3,339,256)Otherexpenses (2,982,986) (15,488,384) (263,616) -

Operating loss (11,543,172) (41,668,993) (1,236,594) (619,071)

Financeincome 6 1,975,027 3,028,575 3,829,331 1,619,951Financecosts 7 (10,482,239) (9,523,990) (5,441,414) (2,304,550)

Shareofresultsofajointventure (298,958) (950,121) - -Shareofresultsofanassociate (2,414,366) (1,021,652) - - Loss before tax 8 (22,763,708) (50,136,181) (2,848,677) (1,303,670)

Incometaxexpense 11 2,347,503 406,551 - - Loss net of tax (20,416,205) (49,729,630) (2,848,677) (1,303,670) Other comprehensive income to be reclassified to profit or loss in subsequent periodsForeigncurrencytranslation,netoftax 3,536,973 (19,588,334) - -

Other comprehensive income for the year, net of tax 3,536,973 (19,588,334) - - Total comprehensive income for the year, net of tax (16,879,232) (69,317,964) (2,848,677) (1,303,670)

Loss attributable to:OwnersoftheCompany (20,416,205) (49,729,630) (2,848,677) (1,303,670)

Total comprehensive income attributable to:OwnersoftheCompany (16,879,232) (69,317,964) (2,848,677) (1,303,670)

Loss per share attributable to owners of the Company (sen per share):

Basic 12 (4.08) (9.95)

Theaccompanyingaccountingpoliciesandexplanatorynotesformanintegralpartofthefinancialstatements.


StatementsofFinancialPositionas at 31 December 2018

Group Company Note 2018 2017 2018 2017 RM RM RM RMAssets

Non-current assets

Property,plantandequipment 13 455,120,746 506,551,704 1,054 2,207Landuserights 14 4,093,884 10,656,694 - -Investmentinsubsidiaries 15 - - 385,336,023 385,599,639Investmentinanassociate 16 1,380,792 3,795,158 - -Investmentinajointventure 17 6,439,594 6,738,552 - -Otherreceivables 19,31 13,541,559 394,251 - - 480,576,575 528,136,359 385,337,077 385,601,846

Current assets

Inventories 18 15,294,684 34,150,743 - -Tradeandotherreceivables 19,31 54,369,605 38,925,700 109,077,061 67,719,849Othercurrentassets 21 2,526,369 539,746 - -Investmentsecurities 22,31 66,434 64,641 - -Taxrecoverable 1,041,711 827,407 211,815 38,360Cashandbankbalances 23,31 28,775,982 30,157,806 8,553,076 234,231

102,074,785 104,666,043 117,841,952 67,992,440

Total assets 582,651,360 632,802,402 503,179,029 453,594,286

Equity and liabilities

Current liabilities

Loansandborrowings 24,31 87,212,295 99,892,698 - -Tradeandotherpayables 25,31 46,682,455 32,371,042 138,880,254 86,446,834Contractliabilities 20 583,392 - - -Incometaxpayable 216,092 1,119,023 - -

134,694,234 133,382,763 138,880,254 86,446,834 Net current liabilities (32,619,449) (28,716,720) (21,038,302) (18,454,394)

Non-current liabilities

Loansandborrowings 24,31 56,198,028 87,844,931 - -Deferredtaxliabilities 26 23,502,877 26,439,255 - -

79,700,905 114,284,186 - - Total liabilities 214,395,139 247,666,949 138,880,254 86,446,834

Net assets 368,256,221 385,135,453 364,298,775 367,147,452

Equity attributable to owners of the Company

Sharecapital 27 329,086,883 329,086,883 329,086,883 329,086,883(Accumulatedlosses)/Retainedearnings (16,815,447) 3,600,758 35,211,892 38,060,569Otherreserves 28 55,984,785 52,447,812 - - Total equity 368,256,221 385,135,453 364,298,775 367,147,452 Total equity and liabilities 582,651,360 632,802,402 503,179,029 453,594,286 Theaccompanyingaccountingpoliciesandexplanatorynotesformanintegralpartofthefinancialstatements.


StatementsofChangesinEquityfor the financial year ended 31 December 2018

Attributable to Equity Holders of the Company (Accumulated Foreign losses)/ currency2018 Equity, Share Share Retained translationGroup total capital premium earnings reserve Note RM RM RM RM RM

Openingbalanceat1January2018 385,135,453 329,086,883 - 3,600,758 52,447,812

Lossfortheyear (20,416,205) - - (20,416,205) -Othercomprehensiveincome 28 3,536,973 - - - 3,536,973 Totalcomprehensiveincome (16,879,232) - - (20,416,205) 3,536,973 Closingbalanceat31December2018 368,256,221 329,086,883 - (16,815,447) 55,984,785

2017Group

Openingbalanceat1January2017 454,453,417 250,000,000 79,086,883 53,330,388 72,036,146

Lossfortheyear (49,729,630) - - (49,729,630) -Othercomprehensiveincome 28 (19,588,334) - - - (19,588,334) Totalcomprehensiveincome (69,317,964) - - (49,729,630) (19,588,334)

TransferpursuanttoCompaniesAct2016 - 79,086,883 (79,086,883) - - Closingbalanceat31December2017 385,135,453 329,086,883 - 3,600,758 52,447,812



Statements of Changes in Equity for the financial year ended 31 December 2018 (continued)

Equity, Share Share Retained total capital premium earnings RM RM RM RM2018Company

Openingbalanceat1January2018 367,147,452 329,086,883 - 38,060,569

Lossnetoftax,representingtotalcomprehensiveincome (2,848,677) - - (2,848,677) Closingbalanceat31December2018 364,298,775 329,086,883 - 35,211,892

2017Company

Openingbalanceat1January2017 368,451,122 250,000,000 79,086,883 39,364,239

Lossnetoftax,representingtotalcomprehensiveincome (1,303,670) - - (1,303,670)

TransferpursuanttoCompaniesAct2016 - 79,086,883 (79,086,883) -

Closingbalanceat31December2017 367,147,452 329,086,883 - 38,060,569



StatementsofCashFlowsfor the financial year ended 31 December 2018

Group Company Note 2018 2017 2018 2017 RM RM RM RMOperating activitiesLossbeforetax (22,763,708) (50,136,181) (2,848,677) (1,303,670)

Adjustmentsfor:Financeincome 6 (1,975,027) (3,028,575) (3,829,331) (1,619,951)Dividendincomefrominvestmentsecurities 5 - (1,630) - -Amortisationoflanduserights 14 507,427 578,753 - -Depreciationofproperty,plantandequipment 13 38,787,854 43,327,337 1,153 1,153Impairmentlossonamountduefromasubsidiary 8 - - - 29,418Impairmentlossontradeandotherreceivables 8 - 629,324 - -Financecosts 7 10,482,239 9,523,990 5,441,414 2,304,550Inventorieswrittenoff 8 63,938 106,648 - -Gainondisposaloflanduserights 5 (19,496,548) - - -(Gain)/Lossondisposalofproperty,plantandequipment 5,8 (682,581) 13,411,305 - -Gainondisposalofajointventure 5 - (249,193) - -Property,plantandequipmentwrittenoff 8 203,429 31,473 - -Reversalofdepositwrittenoff 5 - (186,000) - -Reversalofinventorywrittendown 5 (605,189) (7,750) - -Reversalofimpairmentlossontradereceivables 5 (437,090) (36,000) - -Shareofresultsofajointventure 298,958 950,121 - -Shareofresultsofanassociate 2,414,366 1,021,652 - -Unrealised(gain)/lossonforeignexchange (958,215) 514,553 81 2,429Lossonderegistrationofsubsidiaries 8 - - 263,616 -

Totaladjustments 28,603,561 66,586,008 1,876,933 717,599 Operating cash flows before changes in working capital 5,839,853 16,449,827 (971,744) (586,071)ChangesinworkingcapitalDecreaseininventories 19,397,194 16,735,868 - -(Increase)/Decreaseintradeandotherreceivables (28,279,151) (1,349,128) 113,792 22,710(Increase)/Decreaseinothercurrentassets (1,972,715) (9,701) - 3,500Increase/(Decrease)intradeandotherpayables 4,205,173 (1,251,572) 94,552 407,203Netchangeinholdingcompanybalances 10,914,630 4,000,000 10,016,189 4,000,000Netchangeinsubsidiariesbalances - - 851,675 3,485,751

Totalchangesinworkingcapital 4,265,131 18,125,467 11,076,208 7,919,164


Statements of Cash Flows for the financial year ended 31 December 2018 (continued)

Group Company Note 2018 2017 2018 2017 RM RM RM RM

Cash flows from operations 10,104,984 34,575,294 10,104,464 7,333,093

Interestreceived 1,975,027 3,030,205 3,829,331 1,619,951Interestpaid (10,482,239) (10,649,374) (5,441,414) (2,304,550)Incometaxpaid (1,050,392) (407,452) (173,455) (10,030)Incometaxrefunded 133,582 402,597 - 89,250Realpropertygaintaxpaid (788,485) - - -

Net cash flows (used in)/from operating activities (107,523) 26,951,270 8,318,926 6,727,714

Investing activitiesPurchaseofproperty,plantandequipment (1,059,451) (1,113,092) - -Proceedsfromdisposalofproperty,plantandequipment 19,548,246 18,698,974 - -Proceedsfromdisposaloflanduserights 25,551,931 - - -Acquisitionofadditionalsharesinasubsidiary - - - (130,000)Acquisitionofredeemablepreferencesharesinajointventure - (656,000) - -Purchaseofinvestmentsecurities (1,793) (1,630) - -Proceedsfromdisposalofordinarysharesinajointventure - 756,000 - -

Net cash flows from/(used in) investing activities 44,038,933 17,684,252 - (130,000)

Financing activitiesProceedsofloansandborrowings - 27,730,918 - -Repaymentsofloansandborrowings (29,896,045) (78,350,147) - (8,085,000)Repaymentoffinanceleases (79,559) (58,249) - -Netmovementintradefinancing (1,200,518) (8,200,000) - -Netmovementinshorttermdepositspledged 10,374,863 6,434,452 - -Netmovementinshorttermdepositsrestrictedinuse (203,485) - - -Netmovementincashatbankrestrictedinuse 463,747 771,269 - - Net cash flows used in financing activities (20,540,997) (51,671,757) - (8,085,000)

Net increase/(decrease) in cash and cash equivalents 23,390,413 (7,036,235) 8,318,926 (1,487,286)Effect of exchange rate changes on cash and cash equivalents 130,231 (332,920) (81) (2,429)Cash and cash equivalents at 1 January (11,267,589) (3,898,434) 234,231 1,723,946

Cash and cash equivalents at 31 December 23 12,253,055 (11,267,589) 8,553,076 234,231 Theaccompanyingaccountingpoliciesandexplanatorynotesformanintegralpartofthefinancialstatements.


NotestotheFinancialStatements– 31 DECEMBER 2018

1. Corporate information

TheCompanyisapubliclimitedliabilitycompany,incorporatedanddomiciledinMalaysia,andislistedontheMainMarketofBursaMalaysiaSecuritiesBerhad.TheregisteredofficeoftheCompanyislocatedatLot1035,Block4,MCLD,PiasauIndustrialArea,98000Miri,Sarawak.

TheimmediateandultimateholdingcompanyoftheCompanyisSealinkHoldingsSdn.Bhd.,whichisincorporatedinMalaysia.

TheCompanyisprincipallyengagedininvestmentholding.TheprincipalactivitiesofthesubsidiariesaredisclosedinNote15tothefinancialstatements.

Therehavebeennosignificantchangesinthenatureoftheprincipalactivitiesduringthefinancialyear.

2. Summary of significant accounting policies

2.1 Basis of preparation

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedinaccordancewithMalaysianFinancialReportingStandards(“MFRS”),InternationalFinancialReportingStandards(“IRFS”)andtherequirementsoftheCompaniesAct2016inMalaysia.

ThefinancialstatementsoftheGroupandoftheCompanyhavealsobeenpreparedonthehistoricalcostbasisexceptasdisclosedintheaccountingpoliciesbelowandarepresentedinRinggitMalaysia(“RM”).

2.2 Changes in accounting policies

On1January2018,theGroupandtheCompanyadoptedthefollowingnewandamendedMFRSsmandatoryforannualfinancialperiodsbeginningonorafter1January2018.

• AnnualImprovementstoMFRSStandards2014-2016Cycle: (i) AmendmentstoMFRS1:First-timeAdoptionofMalaysianFinancialReportingStandards (ii) AmendmentstoMFRS128:InvestmentsinAssociatesandJointVentures • AmendmentstoMFRS2:ClassificationandMeasurementofShare-basedPaymentTransactions • AmendmentstoMFRS4:ApplyingMFRS9FinancialInstrumentswithMFRS4InsuranceContracts • AmendmentstoMFRS140:TransfersofInvestmentProperty • MFRS9:FinancialInstruments • MFRS15:RevenuefromContractswithCustomers • ICInterpretation22:ForeignCurrencyTransactionsandAdvanceConsideration

ExceptfortheeffectsarisingfromtheadoptionofMFRS9andMFRS15asdescribedbelow,theadoptionof

thesestandardsdidnothaveanymaterialeffectonthefinancialperformanceorpositionoftheGroupandtheCompany.

MFRS 15: Revenue from Contracts with Customers

MFRS15establishesanewfive-stepmodelthatwillapplytorevenuearisingfromcontractswithcustomers.MFRS15willsupersedethecurrentrevenuerecognitionguidanceincludingMFRS118Revenue,MFRS111ConstructionContractsandtherelatedinterpretationswhenitbecomeseffective.

ThecoreprincipleofMFRS15isthatanentityshouldrecogniserevenuewhichdepictthetransferofpromisedgoodsorservicestocustomersinanamountthatreflectstheconsiderationtowhichtheentityexpectstobeentitledinexchangeforthosegoodsorservices.


Notes to the Financial Statements (continued)

2. Summary of significant accounting policies (continued)

2.2 Changes in accounting policies (continued)

MFRS 15: Revenue from Contracts with Customers (continued)

UnderMFRS15,anentityrecognisesrevenuewhen(oras)aperformanceobligationissatisfied,i.ewhen“control”ofthegoodsorservicesunderlyingtheparticularperformanceobligationistransferredtothecustomer.

Dependingonwhethercertaincriteriaaremet,revenueisrecognisedovertime,inamannerthatdepictstheperformanceofthecontract;oratapointintime,whencontrolofthegoodsorservicesistransferredtothecustomers.

TheGroupandtheCompanyadoptedMFRS15usingthefullretrospectivemethod.

TheadoptionofMFRS15didnothaveamaterialimpactonthefinancialstatementsoftheGroupandoftheCompany.

MFRS 9: Financial Instruments

MFRS9FinancialInstrumentsreplacesMFRS139FinancialInstruments:RecognitionandMeasurement.

MFRS9havebeenadoptedwithaninitialapplicationdateof1January2018,usingthefullretrospectiveapproach.

TheadoptionofMFRS9didnothaveamaterialimpacttothefinancialstatementsoftheGroupandoftheCompanyexceptasdescribedbelow:

(a) Classification and measurement

UnderMFRS9,debtinstrumentsaresubsequentlymeasuredatfairvaluethroughprofitorloss,amortisedcost,orfairvaluethroughothercomprehensiveincome.Theclassificationisbasedontwocriteria:theGroup’sandtheCompany’sbusinessmodelformanagingtheassets;andwhethertheinstruments’contractualcashflowsrepresent‘solelypaymentsofprincipalandinterest’ontheprincipalamountoutstanding.

Theassessmentof theGroup’sandtheCompany’sbusinessmodelwasmadeasof thedateof initialapplication,1January2018.Theassessmentofwhethercontractualcashflowsondebtinstrumentsaresolelycomprisedofprincipalandinterestwasmadebasedonthefactsandcircumstancesasattheinitialrecognitionoftheassets.

TheGroupandtheCompanycontinuedmeasuringatfairvalueallfinancialassetspreviouslyheldatfairvalueunderMFRS139.ThefollowingarethechangesintheclassificationoftheGroup’sandtheCompany’sfinancialassets:

• Tradereceivablesclassifiedasloansandreceivablesasat31December2017areheldtocollectcontractualcashflowsandgiverise tocashflowsrepresentingsolelypaymentsofprincipalandinterest.Theseareclassifiedandmeasuredasdebts instrumentsatamortisedcostbeginning1January2018.

TheGroupandtheCompanyhavenotdesignatedanyfinancialliabilitiesasatfairvaluethroughprofitorloss.TherearenochangesinmeasurementfortheGroup’sandtheCompany’sfinancialliabilities.

Insummary,upontheadoptionofMFRS9,theGrouphadthefollowingrequiredorelectedreclassificationsasat31December2017.




2.2 Changes in accounting policies (continued)

(a) Classification and measurement (continued)

MFRS 9 measurement category Previously classified as loans and Amortised receivables costs RM RM

Tradeandotherreceivables 39,319,951 39,319,951 Cashandbankbalances 30,157,806 30,157,806 (b) Impairment

TheadoptionofMFRS9changedtheGroup’sandtheCompany’saccountingforimpairmentlossesforfinancialassetsbyreplacingMFRS139’sincurredlossapproachwithaforward-lookingexpectedcreditloss(“ECL”)approach.Itappliestofinancialassetsclassifiedatamortisedcost,debtinstrumentsmeasuredatfairvaluethroughothercomprehensiveincome,contractassetsunderMFRS15,leasereceivables,loancommitmentsandcertainfinancialguaranteecontracts.Noadditional lossallowanceisrecognisedonthesefinancialassetsuponapplicationofMFRS9afterconsideringthedayspastdue,historicaldefaultexperienceandthefutureprospectsoftheindustriesinwhichthereceivablesoperate.

Theinitialapplicationoftheotheraccountingstandards,amendmentsandinterpretationsmentionedearlierdonothaveanymaterialimpacttothefinancialstatementsoftheGroupandoftheCompany.

2.3 Standards issued but not yet effective

ThestandardsandinterpretationsthatareissuedbutnotyeteffectiveuptothedateofissuanceoftheGroup’sandtheCompany’sfinancialstatementsaredisclosedbelow.TheGroupandtheCompanyintendtoadoptthesestandards,ifapplicable,whentheybecomeeffective.

Effective for annual periods beginning

Descriptions on or after

AnnualImprovementstoMFRSStandards2015–2017Cycle(i) AmendmentstoMFRS3:BusinessCombinations 1January2019(ii) AmendmentstoMFRS11:JointArrangements 1January2019(iii) AmendmentstoMFRS112:IncomeTaxes 1January2019(iv) AmendmentstoMFRS123:BorrowingCosts 1January2019AmendmentstoMFRS9:PrepaymentFeatureswithNegativeCompensation 1January2019AmendmentstoMFRS119:EmployeeBenefits-PlanAmendment,Curtailment 1January2019orSettlement AmendmentstoMFRS128:Long-termInterestsinAssociatesandJointVentures 1January2019MFRS16:Leases 1January2019ICInterpretation23:UncertaintyoverIncomeTaxTreatment 1January2019AmendmentstoMFRS3:DefinitionofaBusiness 1January2020AmendmentstoMFRS101andMFRS108:DefinitionofMaterial 1January2020TheConceptualFrameworkforFinancialReporting 1January2020MFRS17:InsuranceContracts 1January2021AmendmentstoMFRS10andMFRS128:SaleorContributionof DeferredAssetsbetweenanInvestoranditsAssociateorJointVenture




2.3 Standards issued but not yet effective (continued)

ExceptforMFRS16,theinitialapplicationoftheabovehasnomaterialimpacttothefinancialstatementsoftheGroupandtheCompany.

MFRS 16: Leases

MFRS16willreplaceMFRS117Leases,ICInterpretation4DeterminingwhetheranArrangementcontainsaLease,ICInterpretation115OperatingLease-IncentivesandICInterpretation127EvaluatingtheSubstanceofTransactionsInvolvingtheLegalFormofaLease.MFRS16setsouttheprinciplesfortherecognition,measurement,presentationanddisclosureofleasesandrequireslesseestoaccountforallleasesunderasingleon-balancesheetmodel.

Atthecommencementdateofalease,alesseewillrecognisealiabilitytomakeleasepaymentsandanassetrepresentingtherighttousetheunderlyingassetduringtheleaseterm.Lesseeswillberequiredtorecogniseinterestexpenseontheleaseliabilityandthedepreciationexpenseontheright-of-useasset.

ClassificationofcashflowswillalsobeaffectedasoperatingleasepaymentsunderMFRS117arepresentedasoperatingcashflows,whereasunderMFRS16,theleasepaymentswillbesplitintoaprincipal(whichwillbepresentedasfinancingcashflows)andaninterestportion(whichwillbepresentedasoperatingcashflows).

LessoraccountingunderMFRS16issubstantiallythesameastheaccountingunderMFRS117.Lessorswillcontinuetoclassifyallleasesaseitheroperatingandfinanceleases.MFRS16alsorequireslesseesandlessorstomakemoreextensivedisclosuresthanunderMFRS117.

TheGroupandtheCompanyhaveperformedanimpactassessmentofMFRS16anddonotexpecttheadoptionofMFRS16tohavematerialimpactontheirfinancialstatementsasat1January2019.

2.4 Basis of consolidation

TheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompanyanditssubsidiariesasatthereportingdate.ThefinancialstatementsofthesubsidiariesusedinthepreparationoftheconsolidatedfinancialstatementsarepreparedforthesamereportingdateastheCompany.Consistentaccountingpoliciesareappliedforliketransactionsandeventsinsimilarcircumstances.

TheCompanycontrolsaninvesteeifandonlyiftheCompanyhasallthefollowing:

(i) Powerovertheinvestee(i.eexistingrightsthatgiveitthecurrentabilitytodirecttherelevantactivitiesoftheinvestee);

(ii) Exposure,orrights,tovariablereturnsfromitsinvestmentwiththeinvestee;and (iii) Theabilitytouseitspowerovertheinvesteetoaffectitsreturns.

Subsidiariesareconsolidatedwhen theCompanyobtainscontrolover thesubsidiaryandceaseswhen theCompanylosescontrolofthesubsidiary.Allintra-groupbalances,incomeandexpensesandunrealisedgainsandlossesresultingfromintra-grouptransactionsareeliminatedinfull.

Losseswithinasubsidiaryareattributedtothenon-controllinginterestsevenifthatresultsinadeficitbalance.

ChangesintheGroup’sownershipinterestsinsubsidiariesthatdonotresultintheGrouplosingcontroloverthesubsidiariesareaccountedforasequitytransactions.ThecarryingamountsoftheGroup’sinterestsandthenon-controllinginterestsareadjustedtoreflectthechangesintheirrelativeinterestsinthesubsidiaries.TheresultingdifferenceisrecogniseddirectlyinequityandattributedtoownersoftheCompany.




2.4 Basis of consolidation (continued)

WhentheGrouplosescontrolofasubsidiary,againorlosscalculatedasthedifferencebetween(i)theaggregateofthefairvalueoftheconsiderationreceivedandthefairvalueofanyretainedinterestand(ii) thepreviouscarryingamountoftheassetsandliabilitiesofthesubsidiaryandanynon-controllinginterest,isrecognisedinprofitorloss.Thesubsidiary’scumulativegainorlosswhichhasbeenrecognisedinothercomprehensiveincomeandaccumulatedinequityarereclassifiedtoprofitorlossorwhereapplicable,transferreddirectlytoretainedearnings.Thefairvalueofanyinvestmentretainedintheformersubsidiaryatthedatecontrolislostisregardedasthecostoninitialrecognitionoftheinvestment.

Business combinations

Acquisitionsof subsidiariesareaccounted for using theacquisitionmethod. Thecost of anacquisition ismeasuredastheaggregateoftheconsiderationtransferred,measuredatacquisitiondatefairvalueandtheamountofanynon-controllinginterestsintheacquiree.TheGroupelectsonatransaction-by-transactionbasiswhethertomeasurethenon-controllinginterestsintheacquireeeitheratfairvalueorattheproportionateshareoftheacquiree’sidentifiablenetassets.Transactioncostsincurredareexpensedandincludedinadministrativeexpenses.

Anycontingentconsiderationtobetransferredbytheacquirerwillberecognisedatfairvalueattheacquisitiondate.Subsequentchangesinthefairvalueofthecontingentconsiderationwillberecognisedinprofitorloss.However,ifthecontingentconsiderationisclassifiedasequity,itwillnotberemeasured.Subsequentsettlementisaccountedforwithinequity.

WhentheGroupacquiresabusiness,itassessesthefinancialassetsandliabilitiesassumedforappropriateclassificationanddesignationinaccordancewiththecontractualterms,economiccircumstancesandpertinentconditionsasattheacquisitiondate.Thisincludestheseparationofembeddedderivativesinhostcontractsbytheacquiree.

Ifthebusinesscombinationisachievedinstages,theacquisitiondatefairvalueoftheacquirer’spreviouslyheldequityinterestintheacquireeisremeasuredtofairvalueattheacquisitiondatethroughprofitorloss.

Goodwillisinitiallymeasuredatcost,beingtheexcessoftheaggregateoftheconsiderationtransferredandtheamountrecognisedfornon-controllinginterestsoverthenetidentifiableassetsacquiredandliabilitiesassumed.Ifthisconsiderationislowerthanfairvalueofthenetassetsofthesubsidiaryacquired,thedifferenceisrecognisedinprofitorloss.

2.5 Subsidiaries

AsubsidiaryisanentityoverwhichtheGrouphascontrol.

In theCompany’s separatefinancial statements, investments in subsidiariesareaccounted foratcost lessimpairmentlosses.Ondisposalofsuchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsisincludedinprofitorloss.

2.6 Foreign currency

a) Functional and presentation currency

TheindividualfinancialstatementsofeachentityintheGrouparemeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(“thefunctionalcurrency”).TheconsolidatedfinancialstatementsarepresentedinRinggitMalaysia(RM),whichisalsotheCompany’sfunctionalcurrency.




2.6 Foreign currency (continued)

b) Foreign currency transactions

TransactionsinforeigncurrenciesaremeasuredintherespectivefunctionalcurrenciesoftheCompanyand its subsidiariesandare recordedon initial recognition in the functional currenciesat exchangeratesapproximatingthoserulingatthetransactiondates.Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesaretranslatedattherateofexchangerulingatthereportingdate.Non-monetaryitemsdenominatedinforeigncurrenciesthataremeasuredathistoricalcostaretranslatedusingtheexchangeratesasatthedatesoftheinitialtransactions.Non-monetaryitemsdenominatedinforeigncurrenciesmeasuredatfairvaluearetranslatedusingtheexchangeratesatthedatewhenthefairvaluewasdetermined.

ExchangedifferencesarisingonthesettlementofmonetaryitemsorontranslatingmonetaryitemsatthereportingdatearerecognisedinprofitorlossexceptforexchangedifferencesarisingonmonetaryitemsthatformpartoftheGroup’snetinvestmentinforeignoperations,whicharerecognisedinitiallyinothercomprehensiveincomeandaccumulatedunderforeigncurrencytranslationreserveinequity.TheforeigncurrencytranslationreserveisreclassifiedfromequitytoprofitorlossoftheGroupondisposaloftheforeignoperation.

Exchangedifferencesarisingonthetranslationofnon-monetaryitemscarriedatfairvalueareincludedinprofitorlossfortheperiodexceptforthedifferencesarisingonthetranslationofnon-monetaryitemsinrespectofwhichgainsandlossesarerecogniseddirectlyinequity.Exchangedifferencesarisingfromsuchnon-monetaryitemsarealsorecogniseddirectlyinequity.

c) Foreign operations

TheassetsandliabilitiesofforeignoperationsaretranslatedintoRMattherateofexchangerulingatthereportingdateandincomeandexpensesaretranslatedatexchangeratesatthedatesofthetransactions.Theexchangedifferencesarisingonthetranslationaretakendirectlytoothercomprehensiveincome.Ondisposalofaforeignoperation,thecumulativeamountrecognisedinothercomprehensiveincomeandaccumulatedinequityunderforeigncurrencytranslationreserverelatingtothatparticularforeignoperationisrecognisedintheprofitorloss.

Goodwillandfairvalueadjustmentsarisingontheacquisitionofforeignoperationsaretreatedasassetsandliabilitiesoftheforeignoperationsandarerecordedinthefunctionalcurrencyoftheforeignoperationsandtranslatedattheclosingrateatthereportingdate.

2.7 Property, plant and equipment

Allitemsofproperty,plantandequipmentareinitiallyrecordedatcost.Thecostofanitemofproperty,plantandequipmentisrecognisedasanassetif,andonlyif,itisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheGrouportotheCompanyandthecostoftheitemcanbemeasuredreliably.

Subsequent to recognition,plantandequipmentaremeasuredatcost lessaccumulateddepreciationandaccumulated impairment losses.Whensignificantpartsofproperty,plantandequipmentarerequiredtobereplacedinintervals,suchpartsarerecognisedasindividualassetswithspecificusefullivesanddepreciation,respectively.Likewise,whenamajorinspectionisperformed,itscostisrecognisedinthecarryingamountoftheplantandequipmentasareplacementiftherecognitioncriteriaaresatisfied.Allotherrepairandmaintenancecostsarerecognisedinprofitorlossasincurred.




2.7 Property, plant and equipment (continued)

Depreciationiscomputedonastraight-linebasisovertheestimatedusefullivesoftheassetsasfollows:

Leaseholdland 49-60years Buildingsandwharf 10-50years Vessels 8-20years Vesselequipment 1.5-10years Drydockingcost 2.5years Equipment,furnitureandfittings 1.5-10years Plantandmachinery 10years Motorvehicles 5years Assetsunderconstruction included inplantandequipmentarenotdepreciatedas theseassetsarenotyet

availableforuse.

Thecarryingvaluesofproperty,plantandequipmentarereviewedforimpairmentwheneventsorchangesincircumstancesindicatethatthecarryingvaluemaynotberecoverable.

Theresidualvalue,usefullifeanddepreciationmethodarereviewedateachfinancialyear-end,andadjustedprospectively,ifappropriate.

Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuseordisposal.Anygainorlossonderecognitionoftheassetisincludedintheprofitorlossintheyeartheassetisderecognised.

2.8 Land use rights

Landuserightsareinitiallymeasuredatcost.Followinginitialrecognition,landuserightsaremeasuredatcostlessaccumulatedamortisationandaccumulatedimpairmentlosses.Thelanduserightsareamortisedovertheirleaseterms.

2.9 Impairment of non-financial assets

TheGroupandtheCompanyassessateachreportingdatewhetherthereisanindicationthatanassetmaybeimpaired.Ifanysuchindicationexists,orwhenanannualimpairmentassessmentforanassetisrequired,anestimateismadeoftheasset’srecoverableamount.

Anasset’srecoverableamountisthehigherofanasset’sfairvaluelesscoststosellanditsvalueinuse.Forthepurposeofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashflows(cash-generatingunits(“CGU”)).

Inassessingvalueinuse,theestimatedfuturecashflowsexpectedtobegeneratedbytheassetarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Wherethecarryingamountofanassetexceedsitsrecoverableamount,theassetiswrittendowntoitsrecoverableamount.ImpairmentlossesrecognisedinrespectofaCGUorgroupsofCGUsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtothoseunitsorgroupsofunitsandthen,toreducethecarryingamountoftheotherassetsintheunitorgroupsofunitsonapro-ratabasis.

Impairmentlossesarerecognisedinprofitorloss.




2.9 Impairment of non-financial assets (continued)

Anassessmentismadeateachreportingdateastowhetherthereisanyindicationthatpreviouslyrecognisedimpairment lossesmayno longerexistormayhavedecreased.Apreviously recognised impairment loss isreversedonlyiftherehasbeenachangeintheestimatesusedtodeterminetheasset’srecoverableamountsincethelastimpairmentlosswasrecognised.Ifthatisthecase,thecarryingamountoftheassetisincreasedtoitsrecoverableamount.Thatincreasecannotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciation,hadnoimpairmentlossbeenrecognisedpreviously.Suchreversalisrecognisedinprofitorloss.

2.10 Investments in associates and joint ventures

AnassociateisanentityinwhichtheGrouphassignificantinfluence.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontroloverthosepolicies.

Ajointventureisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightsto thenetassetsof the joint arrangement. Joint control is thecontractuallyagreedsharingofcontrol of anarrangement,whichexistsonlywhendecisionsabouttherelevantactivitiesrequiretheunanimousconsentofthepartiessharingcontrol.

Onacquisitionofaninvestmentinassociateorjointventure,anyexcessofthecostofinvestmentovertheGroup’sshareofthenetfairvalueoftheidentifiableassetsandliabilitiesoftheinvesteeisrecognisedasgoodwillandincludedinthecarryingamountoftheinvestment.AnyexcessoftheGroup’sshareofthenetfairvalueoftheidentifiableassetsandliabilitiesoftheinvesteeoverthecostofinvestmentisexcludedfromthecarryingamountoftheinvestmentandisinsteadincludedasincomeinthedeterminationoftheGroup’sshareoftheassociate’sorjointventure’sprofitorlossfortheperiodinwhichtheinvestmentisacquired.

Anassociateorajointventureisequityaccountedforfromthedateonwhichtheinvesteebecomesanassociateorajointventure.

Undertheequitymethod,oninitialrecognitiontheinvestmentinanassociateorajointventureisrecognisedatcost,andthecarryingamountisincreasedordecreasedtorecognisetheGroup’sshareoftheprofitorlossandothercomprehensiveincomeoftheassociateorjointventureafterthedateofacquisition.WhentheGroup’sshareoflossesinanassociateorajointventureequalorexceedsitsinterestintheassociateorjointventure,theGroupdoesnotrecognisefurtherlosses,unlessithasincurredlegalorconstructiveobligationsormadepaymentsonbehalfoftheassociateorjointventure.

ProfitsandlossesresultingfromupstreamanddownstreamtransactionsbetweentheGroupanditsassociateorjointventurearerecognisedintheGroup’sfinancialstatementsonlytotheextentofunrelatedinvestors’interestsintheassociateorjointventure.Unrealisedlossesareeliminatedunlessthetransactionprovidesevidenceofanimpairmentoftheassettransferred.

ThefinancialstatementsoftheassociatesandjointventuresarepreparedasofthesamereportingdateastheGroup.Wherenecessary,adjustmentsaremadetobringtheaccountingpoliciesinlinewiththoseoftheGroup.

Afterapplicationoftheequitymethod,theGroupdetermineswhetheritisnecessarytorecogniseanimpairmentlossonitsinvestmentinitsassociateorjointventure.Ateachreportingdate,theGroupdetermineswhetherthereisobjectiveevidencethattheinvestmentintheassociateorjointventureisimpaired.Ifthereissuchevidence,theGroupcalculatestheamountofimpairmentasthedifferencebetweentherecoverableamountoftheassociateorjointventureanditscarryingvalue,andthenrecognisesthelosswithin‘Shareofprofitofanassociateandajointventure’inthestatementsofprofitorlossandothercomprehensiveincome.




2.10 Investments in associates and joint ventures (continued)

Uponlossofsignificantinfluenceovertheassociateorjointcontroloverthejointventure,theGroupmeasuresandrecognisesanyretainedinvestmentatitsfairvalue.Anydifferencebetweenthecarryingamountoftheassociateorjointventureuponlossofsignificantinfluenceorjointcontrolandthefairvalueoftheretainedinvestmentandproceedsfromdisposalisrecognisedinprofitorloss.

2.11 Financial instruments

(i) Initial recognition and measurement

Afinancialassetorafinancialliabilityisrecognisedinthestatementsoffinancialpositionwhen,andonlywhen,theGroupandtheCompanybecomeapartytothecontractualprovisionsoftheinstrument.

Current financial year

Afinancialasset(unless it isa tradereceivablewithoutsignificantfinancingcomponent)orafinancialliabilityisinitiallymeasuredatfairvalueplusorminus,foranitemnotatfairvaluethroughprofitorloss,transactioncoststhataredirectlyattributabletoitsacquisitionorissuance.Atradereceivablewithoutasignificantfinancingcomponentisinitiallymeasuredatthetransactionprice.

Previous financial year

Afinancial instrumentwasrecognised initially,at its fairvalueplusorminus, in thecaseofafinancialinstrumentnotatfairvaluethroughprofitor loss,transactioncoststhatweredirectlyattributabletotheacquisitionorissueofthefinancialinstrument.

(ii) Financial instrument categories and subsequent measurement

Financial assets


CategoriesoffinancialassetsaredeterminedoninitialrecognitionandarenotreclassifiedsubsequenttotheirinitialrecognitionunlesstheGroupandtheCompanychangetheirbusinessmodelformanagingfinancialassetsinwhichcaseallaffectedfinancialassetsarereclassifiedonthefirstdayofthefirstreportingperiodfollowingthechangeofthebusinessmodel.

(a) Amortised costs

Amortisedcostcategorycomprisesfinancialassetsthatareheldwithinabusinessmodelwhoseobjective is toholdassets tocollectcontractcashflowsand itscontractual termsgive riseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Thefinancialassetsarenotdesignatedasfairvaluethroughprofitorloss.Subsequenttoinitialrecognition,thesefinancialassetsaremeasuredatamortisedcostusingtheeffectiveinterestmethod.Theamortisedcost isreducedbyimpairment losses.Interest income,foreignexchangegainsandlossesandimpairmentarerecognisedinprofitorloss.Anygainorlossonderecognitionisrecognisedinprofitorloss.

Interestincomeisrecognisedbyapplyingeffectiveinterestratetothegrosscarryingamountexceptforcreditimpairedfinancialassets(seeNote2.12)wheretheeffectiveinterestrateisappliedtotheamortisedcost.




2.11 Financial instruments (continued)

(ii) Financial instrument categories and subsequent measurement (continued)

Financial assets (continued)

Current financial year (continued)

(b) Fair value through profit or loss

All financial assetsnotmeasuredat amortisedcostsasdescribedabovearemeasuredat fairvaluethroughprofitorloss.Thisincludesderivativefinancialassets(exceptforaderivativethatisadesignatedandeffectivehedginginstrument).Oninitialrecognition,theGroupandtheCompanymayirrevocablydesignateafinancialassetthatotherwisemeetstherequirementstobemeasuredatamortisedcostasatfairvaluethroughprofitorlossifdoingsoeliminatesorsignificantlyreducesanaccountingmismatchthatwouldotherwisearise.

Financialassetscategorisedasfairvaluethroughprofitorlossaresubsequentlymeasuredattheirfairvalue.Netgainorlosses,includinganyinterestordividendincome,arerecognisedintheprofitorloss.

All financial assets, except for thosemeasuredat fair value throughprofit or lossand investment inequityinstrumentmeasuredatfairvaluethroughothercomprehensiveincome,aresubjecttoimpairmentassessment(Note2.12).


Inthepreviousfinancialyear,financialassetsoftheGroupandoftheCompanywereclassifiedandmeasuredunderMFRS139asfollows:

(a) Financial assets at fair value through profit or loss

Fairvaluethroughprofitorlosscategorycomprisesfinancialassetsthatwereheldfortrading,contingentconsiderationinabusinesscombinationorfinancialassetsthatwerespecificallydesignatedintothiscategoryuponinitialrecognition.

Otherfinancialassetscategorisedasfairvaluethroughprofitorlossweresubsequentlymeasuredattheirfairvalueswiththegainorlossrecognisedinprofitorloss.

(b) Loans and receivables

Loansandreceivablescategorycompriseddebtinstrumentsthatwerenotquotedinanactivemarket,tradeandotherreceivablesandcashandcashequivalents.

Financialassetscategorisedasloansandreceivablesweresubsequentlymeasuredatamortisedcostusingeffectinterestmethod.

Allfinancialassets,exceptforthosemeasuredatfairvaluethroughprofitorloss,aresubjecttoimpairmentassessment(Note2.12).





(ii) Financial instrument categories and subsequent measurement (continued)

Financial liabilities


Thecategoriesoffinancialliabilitiesatinitialrecognitionareasfollows:

(a) Fair value through profit or loss

Fairvaluethroughprofitorlosscategorycomprisesfinancialliabilitiesthatarederivatives,contingentconsiderationinabusinesscombinationandfinancialliabilitiesthatarespecificallydesignedintothiscategoryuponinitialrecognition.

Oninitialrecognition,theGroupandtheCompanymayirrevocablydesignateafinancialliabilitythatotherwisemeetstherequirementstobemeasuredatamortisedcostasatfairvaluethroughprofitorloss:

• Ifdoingsoeliminatesorsignificantlyreducesanaccountingmismatchthatwouldotherwisearise;or

• Agroupoffinancialliabilitiesorassetsandfinancialliabilitiesismanagedanditsperformanceisevaluatedona fair valuebasis, inaccordancewithadocumented riskmanagementorinvestmentstrategy,andinformationabouttheCompanyisprovidedinternallyonthatbasistotheCompany’skeymanagementpersonnel.

Financialliabilitiescategorisedasfairvaluethroughprofitorlossaresubsequentlymeasuredattheir

fairvaluewithgainsorlosses,includinganyinterestexpensearerecognisedintheprofitorloss.

Forfinancialliabilitieswhereitisdesignatedasfairvaluethroughprofitorlossuponinitialrecognition,theGroupandtheCompanyrecognisetheamountofchangeinfairvalueofthefinancialliabilitythatisattributabletochangeincreditriskintheothercomprehensiveincomeandremainingamountofthechangeinfairvalueintheprofitorloss,unlessthetreatmentoftheeffectsofchangesintheliability’screditriskwouldcreateorenlargeanaccountingmismatch.

(b) Amortised cost

Otherfinancialliabilitiesnotcategorisedasfairvaluethroughprofitorlossaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

Interestexpenseandforeignexchangegainsandlossesarerecognisedintheprofitorloss.Anygainsorlossesonderecognitionarealsorecognisedintheprofitorloss.


In thepreviousfinancialyear,financial liabilitiesof theGroupandof theCompanyweresubsequentlymeasuredatamortisedcostotherthanthosecategorisedasfairvaluethroughprofitorloss.

Financialliabilitiescategorisedasfairvaluethroughprofitorlossweresubsequentlymeasuredattheirfairvalueswiththegainorlossrecognisedinprofitorloss.





(iii) Derecognition

Afinancialassetorpartofitisderecognisedwhen,andonlywhen,thecontractualrightstothecashflowsfromthefinancialassetexpiredortransferred,orcontroloftheassetisnotretainedorsubstantiallyalloftherisksandrewardsofawardsofownershipofthefinancialassetaretransferredtoanotherparty.Onderecognitionoffinancialasset, thedifferencebetweenthecarryingamountof thefinancialassetandthesumofconsiderationreceived(includinganynewassetobtainedlessanynewliabilityassumed)isrecognisedinprofitorloss.

Afinancialliabilityorapartofitisderecognisedwhen,andonlywhen,theobligationspecifiedinthecontractisdischarged,cancelledorexpired.Afinancialliabilityisalsoderecognisedwhenitstermsaremodifiedandthecashflowsofthemodifiedliabilityaresubstantiallydifferent,inwhichcase,anewfinancialliabilitybasedonmodifiedtermsisrecognisedatfairvalue.Onderecognitionofafinancialliability,thedifferencebetweenthecarryingamountofthefinancialliabilityextinguishedortransferredtoanotherpartyandtheconsiderationpaid,includinganynon-cashassettransferredorliabilitiesassumed,isrecognisedinprofitorloss.

(iv) Offsetting

Financialassetandfinancialliabilitiesareoffsetandthenetamountpresentedinthestatementsoffinancialpositionwhen,andonlywhen,theGroupandtheCompanycurrentlyhavealegallyenforceablerighttosetofftheamountandit intendseithertosettlethemonanetbasisortorealisetheassetandliabilitysimultaneously.

2.12 Impairment of financial assets


TheGroupandtheCompanyrecogniselossallowancesforexpectedcreditlossesonfinancialassetsmeasuredattheamortisedcost,debtinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome,contractassetsandleasereceivables.Expectedcreditlossesareaprobability-weightedestimateofcreditlosses.

TheGroupandtheCompanymeasurelossallowancesatanamountequaltolifetimeexpectedcreditloss,exceptfordebtsecuritiesthataredeterminedtohavelowcreditriskatthereportingdate,cashandbankbalancesandotherdebtsecuritiesforwhichcreditriskhasnotincreasedsignificantlysinceinitialrecognition,whicharemeasuredat12-monthexpectedcreditloss.Lossallowancesfortradereceivables,contractassetsandleasereceivablesarealwaysmeasuredatanamountequaltolifetimeexpectedcreditloss.

Whendeterminingwhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognisedandwhenestimatingexpectedcreditloss,theGroupandtheCompanyconsiderreasonableandsupportableinformationthatisrelevantandavailablewithoutunduecostoreffort.Thisincludesbothquantitativeandqualitativeinformationandanalysis,basedontheGroup’sandtheCompany’shistoricalexperienceandinformedcreditassessmentandincludingforward-lookinginformation,whereavailable.

Lifetimeexpectedcreditlossesaretheexpectedcreditlossesthatresultfromallpossibledefaulteventsovertheexpectedlifeoftheasset,while12-monthexpectedcreditlossesaretheportionofexpectedcreditlossesthatresultfromdefaulteventsthatarepossiblewithinthe12monthsafterthereportingdate.ThemaximumperiodconsideredwhenestimatingexpectedcreditlossesisthemaximumcontractualperiodoverwhichtheGroupandtheCompanyareexposedtocreditrisk.




2.12 Impairment of financial assets (continued)

Current financial year (continued)

TheGroupandtheCompanyestimatetheexpectedcreditlossesontradereceivablesandcontractassetsusingaprovisionmatrixwithreferencetohistoricalcreditlossexperience.

Animpairmentlossinrespectoffinancialassetsmeasuredatamortisedcostisrecognisedinprofitorlossandthecarryingamountoftheassetisreducedthroughtheuseofanallowanceaccount.

Animpairmentlossinrespectofdebtinstrumentsmeasuredatfairvaluethroughothercomprehensiveincomeisrecognisedinprofitorlossandtheallowanceaccountisrecognisedinothercomprehensiveincome.

Ateachreportingdate,theGroupandtheCompanyassesswhetherfinancialassetscarriedatamortisedcost

anddebtsecuritiesatfairvaluethroughothercomprehensiveincomearecredit-impaired.Afinancialassetiscreditimpairedwhenoneormoreeventsthathaveadetrimentalimpactontheestimatedfuturecashflowofthefinancialassetshaveoccurred.

Thegrosscarryingamountofafinancialassetsiswrittenoff(eitherpartiallyorfully)totheextentthatthereisnorealisticprospectofrecovery.ThisisgenerallythecasewhentheGroupandtheCompanydeterminethatthedebtordoesnothaveassetsorsourcesofincomethatcouldgeneratesufficientcashflowstorepaytheamountssubjecttothewritten-off.However,financialassetsthatarewrittenoffcouldstillbesubjecttoenforcementactivitiesinordertocomplywiththeGroup’sandtheCompany’sprocedureforrecoveryamountdue.


Allfinancialassets (except forfinancialassetcategorisedas fairvalue throughprofitor loss, investments insubsidiariesandassociates)wereassessedateachreportingdatewhethertherewasanyobjectiveevidenceofimpairmentasaresultofoneormoreeventshavinganimpactontheestimatedfuturecashflowsoftheasset.Lossesexpectedasaresultoffutureevents,nomatterhowlikely,werenotrecognised.Foraninvestmentinanequityinstrument,asignificantorprolongeddeclineinthefairvaluebelowitscostwasanobjectiveevidenceofimpairment.Ifanysuchobjectiveevidenceexists,thentheimpairmentlossofthefinancialassetswasestimated.

Animpairmentlossinrespectofloanandreceivableswasrecognisedinprofitorlossandwasmeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedattheasset’soriginaleffectiveinterestrate.Thecarryingamountoftheassetwasreducedthroughtheuseofanallowanceaccount.

2.13 Contract assets and contract liabilities

Acontractassetistherighttoconsiderationforgoodsorservicestransferredtothecustomerbutnotyetbilledatreportingdate.Inthecaseofconstructioncontracts,contractassetistheexcessofcumulativerevenueearnedoverthebillingsto-date.

Acontract liability is theobligation to transfergoodsorservicestoacustomer forwhichtheGroupandtheCompanyhavereceivedtheconsiderationorhavebilledthecustomer.Inthecaseofconstructioncontracts,contractliabilityistheexcessofthebillingto-dateoverthecumulativerevenueearned.

2.14 Cash and cash equivalents

Cashandcashequivalentscomprisecashatbankandonhand,demanddeposits,andshort-term,highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.ThesealsoincludebankoverdraftsthatformanintegralpartoftheGroup’scashmanagement.




2.15 Inventories

Inventoriesarestatedatlowerofcostandnetrealisablevalue.

Costisdeterminedusingtheweightedaverageandonafirst-in-first-outbasis.Thecostofrawmaterialscomprisescostsofpurchase.Thecostsoffinishedgoodsandwork-in-progresscomprisecostsofrawmaterials,directlabour,otherdirectcostsandappropriateproportionsofmanufacturingoverheadsbasedonnormaloperatingcapacity.

Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesale.Inarrivingatthenetrealisablevalue,dueallowanceismadeforalldamaged,obsoleteandslowmovingitems.

2.16 Borrowing costs

Borrowingcostsarecapitalisedaspartofthecostofaqualifyingassetiftheyaredirectlyattributabletotheacquisition,constructionorproductionof thatasset.Capitalisationofborrowingcostscommenceswhentheactivitiestopreparetheassetforitsintendeduseorsaleareinprogressandtheexpendituresandborrowingcostsareincurred.Borrowingcostsarecapitaliseduntiltheassetsaresubstantiallycompletedfortheirintendeduseorsale.

Allotherborrowingcostsarerecognisedinprofitorlossintheperiodtheyareincurred.BorrowingcostsconsistofinterestandothercoststhattheGroupandtheCompanyincurredinconnectionwiththeborrowingoffunds.

2.17 Financial guarantee contracts

Afinancialguaranteecontractisacontractthatrequirestheissuertomakespecifiedpaymentstoreimbursetheholderforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendue.


Financialguarantees issuedare initiallymeasuredat fair value,netof transactioncosts.Subsequently, theyaremeasuredatthehigheroftheamountofthelossallowance;andtheamountinitiallyrecognisedless,whenappropriate,thecumulativeamountofincomerecognisedinaccordancewithMFRS15.


Financialguaranteesissuedareinitiallymeasuredatfairvalue.Subsequently,theyaremeasuredatthehigherofthebestestimateoftheexpenditurerequiredtosettlethepresentobligationatthereportingdate,andtheamountinitiallyrecognisedlesscumulativeamortisation.

2.18 Employee benefits

(a) Defined contribution plans

TheGroupandtheCompanyparticipateinthenationalpensionschemeasdefinedbythelawsofthecountry inwhichithasoperations.TheGroupandtheCompanymakecontributionstotheEmployeesProvidentFundinMalaysia,adefinedcontributionpensionscheme.Contributionstodefinedcontributionpensionschemesarerecognisedasanexpenseintheperiodinwhichtherelatedserviceisperformed.




2.18 Employee benefits (continued)

(b) Short term benefits

Wages,salaries,bonusesandsocialsecuritycontributionsarerecognisedasanexpenseintheyearinwhichtheassociatedservicesarerenderedbyemployees.Shorttermaccumulatingcompensatedabsencessuchaspaidannualleavearerecognisedwhenservicesarerenderedbyemployeesthatincreasetheirentitlementtofuturecompensatedabsences.Shorttermnon-accumulatingcompensatedabsencessuchassickleavearerecognisedwhentheabsencesoccur.

2.19 Leases

As lessee

Financeleases,whichtransfertotheGroupandtheCompanysubstantiallyalltherisksandrewardsincidentaltoownershipoftheleaseditem,arecapitalisedattheinceptionoftheleaseatthefairvalueoftheleasedassetor,iflower,atthepresentvalueoftheminimumleasepayments.Anyinitialdirectcostsarealsoaddedtotheamountcapitalised.Leasepaymentsareapportionedbetweenthefinancechargesandreductionoftheleaseliabilitysoastoachieveaconstantrateofinterestontheremainingbalanceoftheliability.Financechargesarechargedtoprofitorloss.Contingentrents,ifany,arechargedasexpensesintheperiodsinwhichtheyareincurred.

Leasedassetsaredepreciatedovertheestimatedusefullifeoftheasset.However,ifthereisnoreasonablecertaintythattheGroupandtheCompanywillobtainownershipbytheendoftheleaseterm,theassetisdepreciatedovertheshorteroftheestimatedusefullifeandtheleaseterm.

Operatingleasepaymentsarerecognisedasanexpenseinprofitorlossonastraight-linebasisovertheleaseterm.Theaggregatebenefitofincentivesprovidedbythelessorisrecognisedasareductionofrentalexpenseovertheleasetermonastraight-linebasis.

2.20 Revenue

RevenueismeasuredbasedontheconsiderationtowhichtheGroupandtheCompanyexpecttobeentitledinexchangefortransferringpromisedgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdparties.

RevenueisrecognisedwhentheGroupandtheCompanysatisfyaperformanceobligationbytransferringapromisedgoodandservicetothecustomer,whichiswhenthecustomerobtainscontrolofthegoodorservice.Aperformanceobligationmaybesatisfiedatapointintimeorovertime.Theamountofrevenuerecognisedistheamountallocatedtothesatisfiedperformanceobligation.

a) Rendering of services Revenuefromservicesrenderedisrecognisednetofdiscountsasandwhentheservicesareperformed.

b) Sale of goods

Revenuefromsaleofgoodsismeasuredbasedontheconsiderationspecifiedinacontractwithacustomerinexchangefortransferringgoodstoacustomer,excludingamountscollectedonbehalfofthirdparties.TheGroupandtheCompanyrecogniserevenuewhen(oras)theytransfercontroloveraproducttocustomer.Anassetistransferredwhen(oras)thecustomerobtainscontrolovertheasset.




2.20 Revenue (continued)

b) Sale of goods (continued)

TheGroupandtheCompanytransfercontrolofagoodatapointintimeunlessoneofthefollowingovertimecriteriaismet:

• thecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedastheGroupandtheCompanyperforms;

• theGroupandtheCompany’sperformancecreatesorenhancesanassetthatthecustomercontrolsastheassetiscreatedorenhanced;or

• theGroupandtheCompanyperformancedoesnotcreateanassetwithanalternativeuseandtheGroupandtheCompanyhasanenforceablerighttopaymentforperformancecompletedto-date.

c) Construction contracts

Revenuefromconstructioncontractsisrecognisedovertimebyreferencetothecostincurredovertheestimatedcost.Therelatedcostsarerecognisedinprofitorlosswhentheyareincurred.Advancesreceivedareincludedincontractliabilities.

d) Rental income

Revenueincomefrominvestmentpropertiesarerecognisedonastraight-linebasisoverthetermofthelease.

e) Dividend income

DividendincomeisrecognisedwhentheGroup’sandtheCompany’srighttoreceivepaymentisestablished.

f) Management fees

Managementfeesarerecognisedwhenservicesarerendered.

2.21 Taxes

a) Current tax

Currenttaxassetsandliabilitiesaremeasuredattheamountexpectedtoberecoveredfromorpaidtothetaxationauthorities.Thetaxratesandtaxlawsusedtocomputetheamountarethosethatareenactedorsubstantivelyenactedbythereportingdate.

Currenttaxesarerecognisedinprofitorlossexcepttotheextentthatthetaxrelatestoitemsrecognisedoutsideprofitorloss,eitherinothercomprehensiveincomeordirectlyinequity.

ForLabuantradingactivity,itsprofitswouldbesubjecttotaxunderLabuanBusinessActivityTax1990

undertwooptions:

i) tobetaxedatrateof3%onauditedprofits;or ii) uponelection,topayaflattaxofRM20,000.




2.21 Taxes (continued)

b) Deferred tax

Deferredtaxisprovidedusingtheliabilitymethodontemporarydifferencesatthereportingdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposes.

Deferredtaxliabilitiesarerecognisedforalltemporarydifferences,except:

- wherethedeferredtaxliabilityarisesfromtheinitialrecognitionofgoodwillorofanassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;and

- inrespectoftaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesandinterestsinjointventures,wherethetimingofthereversalofthetemporarydifferencescanbecontrolledanditisprobablethatthetemporarydifferenceswillnotreverseintheforeseeablefuture.

Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,carryforwardofunusedtaxcreditsandunusedtaxlosses,totheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,andthecarryforwardofunusedtaxcreditsandunusedtaxlossescanbeutilisedexcept:

- wherethedeferredtaxassetrelatingtothedeductibletemporarydifferencearisesfromtheinitialrecognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;and

- inrespectofdeductibletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesandinterestsinjointventures,deferredtaxassetsarerecognisedonlytotheextentthatitisprobablethatthetemporarydifferenceswillreverseintheforeseeablefutureandtaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilised.

Thecarryingamountofdeferredtaxassetsisreviewedateachreportingdateandreducedtotheextent

thatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassettobeutilised.Unrecogniseddeferredtaxassetsarereassessedateachreportingdateandarerecognisedtotheextentthatithasbecomeprobablethatfuturetaxableprofitwillallowthedeferredtaxassetstobeutilised.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheyearwhentheassetisrealisedortheliabilityissettled,basedontaxratesandtaxlawsthathavebeenenactedorsubstantivelyenactedatthereportingdate.

Deferredtaxrelatingtoitemsrecognisedoutsideprofitorlossisrecognisedoutsideprofitorloss.Deferredtaxitemsarerecognisedincorrelationtotheunderlyingtransactioneitherinothercomprehensiveincomeordirectlyinequityanddeferredtaxarisingfromabusinesscombinationisadjustedagainstgoodwillonacquisition.

Deferredtaxassetsanddeferredtaxliabilitiesareoffset,ifalegallyenforceablerightexiststosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandthedeferredtaxesrelatetothesametaxableentityandthesametaxationauthority.




2.21 Taxes (continued)

c) Sales and Services Tax (“SST”) and Goods and Services Tax (“GST”)

Revenues,expensesandassetsarerecognisednetoftheamountofSSTorGSTexcept:

- WheretheSSTandGSTincurredinapurchaseofassetsorservicesisnotrecoverablefromthetaxationauthority,inwhichcasetheSSTandGSTisrecognisedaspartofthecostofacquisitionoftheassetoraspartoftheexpenseitemasapplicable;and

- ReceivablesandpayablesthatarestatedwiththeamountofSSTandGSTincluded.

2.22 Current versus non-current classification

Assetsand liabilitiesarepresented in thestatementsoffinancialpositionbasedoncurrentandnon-currentclassification.Anassetiscurrentwhenitis:

• Expectedtoberealisedorintendedtobesoldorconsumedinthenormaloperatingcycle • Heldprimarilyforthepurposeoftrading • Expectedtoberealisedwithintwelvemonthsafterthereportingperiod • Cashorcashequivalentunlessrestrictedfrombeingexchangedorusedtosettlealiabilityforatleast

twelvemonthsafterthereportingperiod

Allotherassetsareclassifiedasnon-current.

Aliabilityiscurrentwhen:

• Itisexpectedtobesettledinthenormaloperatingcycle • Itisheldprimarilyforthepurposeoftrading • Itisduetobesettledwithintwelvemonthsafterthereportingperiod • Thereisnounconditionalrighttodeferthesettlementoftheliabilityforatleasttwelvemonthsafterthe

reportingperiod

Allotherliabilitiesareclassifiedasnon-current.

Deferredtaxassetsandliabilitiesareclassifiedasnon-currentassetsandliabilities.

2.23 Provisions

ProvisionsarerecognisedwhentheGroupandtheCompanyhaveapresentobligation(legalorconstructive)asaresultofapastevent,itisprobablethatanoutflowofeconomicresourceswillberequiredtosettletheobligationandtheamountoftheobligationcanbeestimatedreliably.

Provisionsarereviewedateachreportingdateandadjustedtoreflectthecurrentbestestimate.Ifitisnolongerprobablethatanoutflowofeconomicresourceswillberequiredtosettletheobligation,theprovisionisreversed.Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpretaxratethatreflects,whereappropriate,therisksspecifictotheliability.Whendiscountingisused,theincreaseintheprovisionduetothepassageoftimeisrecognisedasafinancecost.




2.24 Segment reporting

Formanagementpurposes,theGroupisorganisedintooperatingsegmentsbasedontheirproductsandserviceswhichareindependentlymanagedbytherespectivesegmentmanagersresponsiblefortheperformanceoftherespectivesegmentsundertheircharge.ThesegmentmanagersreportdirectlytothemanagementoftheCompanywhoregularlyreviewthesegmentresultsinordertoallocateresourcestothesegmentsandtoassessthesegmentperformance.AdditionaldisclosuresoneachofthesesegmentsareshowninNote35,includingthefactorsusedtoidentifythereportablesegmentsandthemeasurementbasisofsegmentinformation.

2.25 Share capital and share issuance expenses

AnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheGroupandtheCompanyafterdeductingallofitsliabilities.Ordinarysharesareequityinstruments.

Ordinarysharesarerecordedattheproceedsreceived,netofdirectlyattributableincrementaltransactioncosts.Dividendsonordinarysharesarerecognisedinequityintheperiodinwhichtheyaredeclared.

2.26 Contingencies

Acontingentliabilityorassetisapossibleobligationorassetthatarisesfrompasteventsandwhoseexistencewillbeconfirmedonlybytheoccurrenceornon-occurrenceofuncertainfutureevent(s)notwhollywithinthecontroloftheGroupandtheCompany.

ContingentliabilitiesandassetsarenotrecognisedinthestatementsoffinancialpositionoftheGroupandoftheCompany.

2.27 Fair value measurements

Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Thefairvaluemeasurementisbasedonthepresumptionthatthetransactiontoselltheassetortransfertheliabilitytakesplaceeitherintheprincipalmarketfortheassetorliabilityorintheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetorliability.TheprincipalorthemostadvantageousmarketmustbeaccessiblebytheGroupandtheCompany.

Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionsthatmarketparticipantsactintheireconomicbestinterestwhenpricingtheassetorliability.TheGroupandtheCompanyusevaluationtechniquesthatareappropriate in thecircumstancesand forwhichsufficientdataareavailable tomeasure fair value,maximisingtheuseofrelevantobservableinputsandminimisingtheuseofunobservableinputs.

Allassetsandliabilitiesforwhichfairvalueismeasuredordisclosedinthefinancialstatementsarecategorisedwithinthefairvaluehierarchybasedonthelowestlevelinputthatissignificanttothefairvaluemeasurementasawhole.

Forassetsandliabilitiesthatarerecognisedinthefinancialstatementsonarecurringbasis, theGroupandtheCompanydeterminewhether transfershaveoccurredbetween levels in thehierarchyby re-assessingcategorisation(basedonthelowestlevelinputthatissignificanttothefairvaluemeasurementasawhole)atthefinancialyearend.



3. Significant accounting judgements and estimates

ThepreparationoftheGroup’sandtheCompany’sfinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffectthereportedamountsofrevenues,expenses,assetsandliabilities,andthedisclosureofcontingentliabilitiesatthereportingdate.However,uncertaintyabouttheseassumptionsandestimatescouldresultinoutcomesthatcouldrequireamaterialadjustmenttothecarryingamountoftheassetorliabilityaffectedinthefuture.

Key sources of estimation uncertainty

Thekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthereportingdatethathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow.

a) Useful lives of property, plant and equipment

Thecostofproperty,plantandequipmentisdepreciatedonastraight-linebasisovertheassets’estimatedeconomicusefullives.Managementestimatestheusefullivesoftheseproperty,plantandequipmenttobewithin1.5yearsto60years.Thesearecommonlifeexpectanciesappliedintheshipbuildingandshipcharteringindustries.Changesintheexpectedlevelofusageandtechnologicaldevelopmentscouldimpacttheeconomicusefullivesandtheresidualvaluesoftheseassets.Therefore,futuredepreciationchargescouldberevised.ThecarryingamountoftheGroup’sandtheCompany’sproperty,plantandequipmentatthereportingdateisdisclosedinNote13.A5%differenceintheexpectedusefullivesoftheseassetsfrommanagement’sestimateswouldresultinapproximately8.52%(2017:4.32%)and0.002%(2017:0.005%)varianceintheGroup’sandintheCompany’slossfortheyear.

b) Impairment of vessels

Animpairmentexistswhenthecarryingvalueofanassetorcash-generatingunitexceedsitsrecoverableamount,whichisthehigherofitsfairvaluelesscoststosellanditsvalueinuse.Thefairvaluelesscoststosellcalculationisbasedonvaluationperformedbyindependentshipvaluers,availabledatafrombindingsalestransactionsinanarm’slengthtransactionofsimilarassetsorobservablemarketpriceslessincrementalcostsfordisposingoftheasset.Thevalueinusecalculationisbasedonadiscountedcashflowmodel.

TheGroupandtheCompanyperformedareviewoftherecoverableamountofvesselswithindicatorsofimpairmentandconcludedthatnoimpairmentisrequiredduringthefinancialyear.

4. Revenue

Group Company 2018 2017 2018 2017 RM RM RM RM

Revenuefromcontractswithcustomers 69,787,790 75,184,805 - - Revenuefromothersource: -Managementfee - - 1,936,087 2,498,822 69,787,790 75,184,805 1,936,087 2,498,822



4. Revenue (continued)

(a) Disaggregation of the Group’s revenue from contracts with customers

Group 2018 2017 RM RM

Charterhirerevenue 44,756,205 53,318,084 Saleofvessels 21,991,135 19,350,000 Contractservices 3,040,450 2,516,721

69,787,790 75,184,805

Group Company 2018 2017 2018 2017 RM RM RM RM Timing of revenue recognition: -atapointintime 21,991,135 19,350,000 - - -overtime 47,796,655 55,834,805 1,936,087 2,498,822 69,787,790 75,184,805 1,936,087 2,498,822

(b) Transaction prices allocated to the remaining performance obligation

The following table includes revenueexpected tobe recognised in the future related toperformanceobligationsthatareunsatisfiedorpartiallyunsatisfiedatthereportingdate.

Group 2018 2017 RM RM Constructioncontracts -Withinoneyear 829,138 833,938 Charterhirerevenue -Withinoneyear 11,067,398 20,378,765 -Overoneyear 4,955,689 13,076,996 16,852,225 34,289,699

5. Other income


Dividendincomefrominvestmentsecurities - 1,630 - - Gainondisposalofajointventure - 249,193 - - Gainondisposalofproperty, plantandequipment 682,581 - - - Gainondisposaloflanduserights 19,496,548 - - - Netgainonforeignexchange 1,235,536 - - - Rentalincome 182,000 458,000 - - Reversalofinventorywrittendown 605,189 7,750 - - Reversalofimpairmentlosson tradereceivables(Note19) 437,090 36,000 - - Reversalofdepositwrittenoff - 186,000 - - Sundryincomefromshipoperations 1,801,109 3,702,655 48,016 221,363 24,440,053 4,641,228 48,016 221,363



6. Finance income

Group Company 2018 2017 2018 2017 RM RM RM RM Interestincomefrom: -Currentaccount 47,122 59,489 8,431 13,804 -Shorttermdeposits 353,223 428,575 - - -Associate 985,844 2,356,210 - - -Subsidiaries - - 3,820,900 1,606,147 -Others 588,838 184,301 - - 1,975,027 3,028,575 3,829,331 1,619,951

7. Finance costs

Group Company 2018 2017 2018 2017 RM RM RM RM Interestexpenseson: -Bankloans 5,756,062 6,832,055 - - -Bankoverdrafts 2,208,850 2,175,155 - - -Islamicloans - 291,197 - 291,197 -Loanfromsubsidiaries - - 5,441,414 2,013,353 -Obligationsunderfinanceleases 1,617 4,807 - - -Revolvingcredits 2,515,710 2,642,794 - - -Redeemablepreferenceshares - (1,296,634) - - 10,482,239 10,649,374 5,441,414 2,304,550 Less:Interestexpensescapitalisedin: -Vesselswork-in-progress - (674,090) - - -Completedvessel - (451,294) - - 10,482,239 9,523,990 5,441,414 2,304,550 8. Loss before tax

Group Company 2018 2017 2018 2017 RM RM RM RM Thefollowingitemshavebeenincluded inarrivingatlossbeforetax:

Employeebenefitsexpense(Note9) 16,743,091 18,900,971 2,125,098 2,586,579 Amortisationoflanduserights(Note14) 507,427 578,753 - - Auditors’remunerations -Currentyear 233,630 242,244 64,000 55,000 -(Over)/Underprovisioninpreviousyears (5,312) - 9,000 - Charterexpenses 283,662 966,576 - - Depreciationofproperty,plant andequipment(Note13) 38,787,854 43,327,337 1,153 1,153 Impairmentlossonamountdue fromasubsidiary - - - 29,418 Impairmentlossontradeand otherreceivables - 629,324 - - Inventorieswrittenoff 63,938 106,648 - - Lossonderegistrationofsubsidiaries - - 263,616 - Lossondisposalofproperty, plantandequipment - 13,411,305 - - Netlossonforeignexchange - 485,425 377 5,280 Non-executiveDirectors’fees 301,030 303,230 277,830 277,830 Rentalofpremises 227,799 260,854 12,000 12,000 Property,plantandequipmentwrittenoff 203,429 31,473 - -



9. Employee benefits expense


Salariesandwages 14,993,322 16,913,525 1,905,011 2,301,743 Socialsecuritycontributions 209,340 166,906 14,071 15,561 Contributionstodefinedcontributionplan 1,537,790 1,708,173 206,016 269,275 Otherbenefits 2,639 112,367 - - 16,743,091 18,900,971 2,125,098 2,586,579 IncludedinemployeebenefitsexpenseoftheGroupandoftheCompanyaretheExecutiveDirectors’remuneration

amountingtoRM913,568(2017:RM934,038)andRM63,025(2017:RM130,905)respectivelyasfurtherdisclosedinNote10.

10. Directors’ remuneration

ThedetailsofremunerationreceivablebyDirectorsoftheCompanyduringtheyearareasfollows: Group Company 2018 2017 2018 2017 RM RM RM RM Directors of the Company Executive: Salariesandotheremoluments 805,572 819,509 32,039 84,637 Fees 28,114 39,690 28,114 39,690 Definedcontributionplan 79,882 74,839 2,872 6,578 TotalExecutiveDirectors’remuneration (excludingbenefits-in-kind) 913,568 934,038 63,025 130,905 Estimatedmoneyvalueofbenefits-in-kind 20,125 18,943 20,125 18,943 TotalExecutiveDirectors’remuneration (includingbenefits-in-kind) 933,693 952,981 83,150 149,848 Non-Executive: Fees 277,830 277,830 277,830 277,830 1,211,523 1,230,811 360,980 427,678 Directors of subsidiaries Salariesandotheremoluments 154,230 - - - Fees 23,200 25,400 - - Definedcontributionplan 3,960 - - - 181,390 25,400 - - TotalDirectors’remuneration 1,392,913 1,256,211 360,980 427,678 ThenumberofDirectorsoftheCompanywhosetotalremunerationduringtheyearfellwithinthefollowingbands

isanalysedbelow:



10. Directors’ remuneration (continued)

Number of Directors 2018 2017 ExecutiveDirectors: RM350,001–RM400,000 - 1 RM550,001–RM600,000 1 - RM600,001–RM650,000 - 1

Non-ExecutiveDirectors: RM50,001–RM100,000 4 4

11. Income tax expense

Major components of income tax expense

Themajorcomponentsofincometaxexpensefortheyearsended31December2018and2017are:

Group Company 2018 2017 2018 2017 RM RM RM RM Statements of profit or loss and other comprehensive income:

Currentincometax: Malaysianincometax 547,975 1,466,488 - - (Over)/Underprovisionin respectofpreviousyears (747,585) 61,979 - - Realpropertygainstax 788,485 - - - 588,875 1,528,467 - - Deferredincometax(Note26): Reversaloftemporarydifferences (3,249,985) (2,457,013) - - Underprovisioninrespectofpreviousyears 313,607 521,912 - - (2,936,378) (1,935,101) - - Shareoftaxofajointventure - 83 - - Incometaxexpenserecognised inprofitorloss (2,347,503) (406,551) - - Reconciliation between tax expense and accounting loss

Thereconciliationbetweentaxexpenseandtheproductofaccountinglossmultipliedbytheapplicablecorporatetaxratefortheyearsended31December2018and2017areasfollows:


Lossbeforetax (22,763,708) (50,136,181) (2,848,677) (1,303,670)

TaxatMalaysianstatutorytax rateof24%(2017:24%) (5,463,290) (12,032,683) (683,682) (312,881) Adjustments: Non-deductibleexpenses 7,253,295 11,269,333 683,405 312,604 Incomenotsubjecttotaxation (6,859,673) (6,615,440) - -



11. Income tax expense (continued)

Group Company 2018 2017 2018 2017 RM RM RM RM Deferredtaxassetsnot recognisedduringtheyear 3,155,866 6,624,999 - - Reversalofdeferredtaxassets notrecognisedinpreviousyears - (426,545) - - Reversalofdeferredtaxliabilities notrecognisedinpreviousyears 277 277 277 277 Effectofgrouprelief - 287,404 - - Underprovisionofdeferred taxinpreviousyears 313,607 521,912 - - (Over)/Underprovisionofincome taxinpreviousyears (747,585) 61,979 - - Shareoftaxofajointventure - 83 - - Singaporestatutorystepped incomeexemption - (80,684) - - Taxincentive - (17,186) - - Incometaxexpenserecognised inprofitorloss (2,347,503) (406,551) - - Currentincometaxiscalculatedatthestatutorytaxrateof24%(2017:24%)oftheestimatedassessableloss

fortheyear.

TheprofitarisingfromtheshippingoperationsofsubsidiariesinSingaporeispartiallyexemptedfromincometax.

Theabovereconciliationispreparedbyaggregatingseparatereconciliationsforeachnationaljurisdiction.

12. Loss per share

Basiclosspershareamountsarecalculatedbydividinglossfortheyear,netoftax,attributabletoownersoftheCompanybytheweightedaveragenumberofordinarysharesoutstandingduringthefinancialyear.

Thefollowingreflectthelossandsharedatausedinthecomputationofbasiclosspersharefortheyearsended31December:

2018 2017 RM RM

LossnetoftaxattributabletoownersoftheCompany (20,416,205) (49,729,630)

Numberofordinarysharesinissueduringtheyear 500,000,000 500,000,000 2018 2017 Sen Sen

Basiclosspershareforlossfortheyear (4.08) (9.95)

Therearenodilutivepotentialordinaryshares.AssuchthedilutedearningspershareoftheGroupisequivalenttobasiclosspershare.


Notes to the Financial Statements (continued)13

. P

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erty

, pla

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7

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80

5,93

7,92

08,56

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4,18

2,57

96,26

7,44

593

8,04

3,72

9

Add

ition

s

-21

8,76

751

,214

3,99

0-

853,52

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7,49

2

Rec

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--

3,74

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)-

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-

(37,66

2,58

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(50,80

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-(244

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)-

(37,95

8,13

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Writtenoff

(1,365

)(37,58

4)

(29,81

4)

-(2,580

)-

(71,34

3)

Exch

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ce

-(40,99

7,45

0)

(15,97

7)

--

-(41,01

3,42

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At3

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7an

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72,573

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72

7,45

9,06

48,52

1,59

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3,93

5,25

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0,96

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8,32

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9,25

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1,59

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7,40

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(33,50

0,26

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(13,23

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(4,002

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Writtenoff

-

(2,282

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(171

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-8,18

1,11

53,82

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8,18

4,93

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83

700,

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8,70

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3,82

0,72

4 82

8,32

1,33

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13.

Pro

per

ty, p

lan

t an

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qu

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ent (

con

tinu

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Ve

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s, v

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To

tal

RM

R

M

RM

R

M

RM

R

M

RM

Acc

um

ula

ted

dep

reci

atio

n

At1

.1.201

7

24,329

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25

4,40

8,88

17,30

8,35

634

,974

,266

3,97

4,11

33,82

0,72

432

8,81

5,67

4

Cha

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1,79

5,96

238

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67

5,16

92,39

6,30

611

7,92

6-

43,327

,337

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--

312

(312

)-

--

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-

(5,559

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)(43,81

1)

-(244

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(5,847

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)

Writtenoff

(341

)(10,61

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(26,34

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-(2,578

)-

(39,87

0)

Exch

ange

ratedifferen

ce

-(12,66

3,55

5)

(15,11

8)

--

-(12,67

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At3

1.12

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7an

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26,124

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27

4,51

7,38

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8,56

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3,84

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1,80

4,72

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40

1,68

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38,787

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(16,24

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(2,254

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455,

120,

746



13. Property, plant and equipment (continued)

*Land, buildings and wharf

Workshop Wharf, Leasehold and yard and Group land renovation buildings Total RM RM RM RM Cost:

At1January2017 37,842,735 3,404,708 31,327,110 72,574,553 Writtenoff - - (1,365) (1,365) At31December2017and1January2018 37,842,735 3,404,708 31,325,745 72,573,188 Transfers - 1,601,595 - 1,601,595 At31December2018 37,842,735 5,006,303 31,325,745 74,174,783 Accumulated depreciation:

At1January2017 6,927,776 2,366,128 15,035,430 24,329,334 Chargefortheyear 447,354 168,889 1,179,719 1,795,962 Writtenoff - - (341) (341) At31December2017and1January2018 7,375,130 2,535,017 16,214,808 26,124,955 Chargefortheyear 620,462 129,407 1,054,854 1,804,723 At31December2018 7,995,592 2,664,424 17,269,662 27,929,678 Net carrying amount:

At31December2017 30,467,605 869,691 15,110,937 46,448,233 At31December2018 29,847,143 2,341,879 14,056,083 46,245,105 Office Company Signboard equipment Total RM RM RM Cost:

At1January2017,31December2017 and31December2018 7,390 9,050 16,440

Accumulated depreciation:

At1January2017 5,789 7,291 13,080 Chargefortheyear(Note8) 739 414 1,153 At31December2017and1January2018 6,528 7,705 14,233 Chargefortheyear(Note8) 739 414 1,153 At31December2018 7,267 8,119 15,386



13. Property, plant and equipment (continued) Office Company Signboard equipment Total RM RM RM Net carrying amount:

At31December2017 862 1,345 2,207

At31December2018 123 931 1,054 i) Assetsheldunderfinanceleases

In2017,theGroupacquiredproperty,plantandequipmentwithanaggregatecostofRM14,400bymeansoffinanceleases.Thecashoutflowsonacquisitionofproperty,plantandequipmentoftheGroupamountedtoRM1,059,451(2017:RM1,113,092).

Thecarryingamountofproperty,plantandequipmentheldunderfinanceleasesatthereportingdatewas

asfollows:

Motor Group vehicles Total RM RM Net carrying amount

At31December2017 71,123 71,123

At31December2018 - - ii) Assetspledgedassecurity

Inadditiontoassetsheldunderfinanceleases,theGroup’svesselswithacarryingamountofRM212,755,962(2017:RM260,819,892)aremortgagedtosecuretheGroup’sbankloans(Note24).

TheGroup’sleaseholdlandwithcarryingamountofRM26,678,179(2017:RM25,759,893)ismortgagedtosecuretheGroup’sbankloans(Note24).

Inviewofthedepressedeconomicconditionsintheoffshoremarinesector,theGroupperformedanassessmentduringthefinancialyearontherecoverableamountofthevesselstodeterminewhetherthecarryingvalueofthesevessels,whichareincharteringsegment,arerecoverable.ThereviewwascarriedoutinaccordancewithMFRS136“ImpairmentofAssets”.Theestimatedrecoverableamountisdeterminedbasedonthehigherofanasset’svalueinuse(“VIU”)andfairvaluelesscoststosell(“FV”).Therecoverableamountwascomparedtothecarryingvalueofeachassetwithidentifiedimpairmenttriggers.Iftherecoverableamountislower,thecarryingvalueoftheassetisreducedtoitsestimatedrecoverableamountandthedifferenceisregardedasanimpairmentloss.

TheGroupconsideredeachvesselasacash-generatingunit(“CGU”).However,theyaregroupedtogetherfordisclosurepurposes.ValueinuseisthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheCGU.TheFVrepresentsanestimateoftheamountreceivedintheeventthevesselissoldonawillingbuyerandawillingsellerbasis.

TheGrouphasreviewedthecarryingvalueofallthevesselsownedbytheGroupandconcludedthatthereisnoimpairmentlossrequiredforyears2018and2017.



14. Land use rights

Group 2018 2017 RM RM Cost:

At1January 16,686,200 16,686,200 Disposals (9,296,676) - At31December 7,389,524 16,686,200 Accumulated amortisation:

At1January 6,029,506 5,450,753 Amortisationfortheyear(Note8) 507,427 578,753 Disposals (3,241,293) - At31December 3,295,640 6,029,506

Net carrying amount 4,093,884 10,656,694

Amounttobeamortised: -Notlaterthanoneyear 258,178 578,753 -Laterthanoneyearbutnotlaterthanfiveyears 1,032,712 2,315,012 -Laterthanfiveyears 2,802,994 7,762,929

Landuserightspledgedassecurity

LanduserightswithanaggregatecarryingvalueofRM2,072,334(2017:RM8,585,914)arepledgedassecuritiesforbankborrowingsasreferredtoinNote24.

15. Investment in subsidiaries

Company 2018 2017 RM RM Unquotedshares,atcost: -Ordinaryshares 234,810,172 242,060,174 -Redeemableconvertiblepreferenceshares 167,845,750 167,845,750 402,655,922 409,905,924 Impairmentlosses (17,319,899) (24,306,285) 385,336,023 385,599,639



15. Investment in subsidiaries (continued)

Detailsofthesubsidiariesareasfollows: Percentage of Country of Principal equity held Name of subsidiaries incorporation activities 2018 2017 % %

CergasMajusamaSdn.Bhd. Malaysia Charteringofmarinevessels 100 100 EraSurewaySdn.Bhd. Malaysia Charteringofmarinevessels 100 100 EraSurplusSdn.Bhd. Malaysia Charteringofmarinevessels 100 100 MidasChoiceSdn.Bhd. Malaysia Charteringofmarinevessels 100 100 GodrimajuSdn.Bhd. Malaysia Charteringofmarinevessels 100 100 EuroedgeSdn.Bhd. Malaysia Charteringofmarinevessels 100 100 NavitexShippingSdn.Bhd.** Malaysia Inactive - 100

SeabrightSdn.Bhd. Malaysia Charteringofmarinevessels 100 100 SealinkEngineeringAndSlipway Malaysia Shipbuilding 100 100 Sdn.Bhd.

SealinkManagementSdn.Bhd. Malaysia Inactive 100 100 SealinkMarineSdn.Bhd. Malaysia Inactive 100 100

SealinkPacificSdn.Bhd. Malaysia Charteringofmarinevessels 100 100 SealinkSdn.Bhd. Malaysia Charteringofmarinevesselsand 100 100 lettingofproperties

SutherfieldResourcesSdn.Bhd. Malaysia Charteringofmarinevessels 100 100 SealinkShipyardSdn.Bhd. Malaysia Shipbuilding 100 100

Sea-GoodPteLtd.* Singapore Charteringofmarinevessels 100 100 SealinkOffshore(L)Ltd. FederalTerritory Investmentholding 100 100 ofLabuan, andcharteringof Malaysia marinevessels

SeaAlphaSdn.Bhd.** Malaysia Inactive - 100

Seabright(Singapore) Singapore Shipowner 100 100 PrivateLimited*

Subsidiary of Sealink Shipyard Sdn. Bhd.

AliranSaksamaSdn.Bhd. Malaysia Lettingofproperties 100 100 andinvestmentholding



15. Investment in subsidiaries (continued)

Detailsofthesubsidiariesareasfollows: Percentage of Country of Principal equity held Name of subsidiaries incorporation activities 2018 2017 % %

Subsidiary of Sealink Engineering And Slipway Sdn. Bhd.

BaramMouldingIndustries Malaysia Lettingofproperty 100 100 Sdn.Bhd. andinvestmentholding

Subsidiary of Sealink Pacific Sdn. Bhd.

BristalViewSdn.Bhd. Malaysia Propertyholding 100 100

Subsidiary of Midas Choice Sdn. Bhd.

SeaLegendShippingSdn.Bhd. Malaysia Investmentholding 100 100

Subsidiary of Sea Legend Shipping Sdn. Bhd.

MitraAngkasaSdn.Bhd. Malaysia Charteringof 100 100 marinevessels

Subsidiaries of Sealink Offshore (L) Ltd.

SealinkResources(L)Ltd.# FederalTerritory Inactive - 100 ofLabuan, Malaysia

SealinkMarine(L)Ltd.# FederalTerritory Inactive - 100 ofLabuan, Malaysia

SealinkAntarabangsaLtd. FederalTerritory Charteringof 100 100 ofLabuan, marinevessel Malaysia

PerkasaAsiaCorporationLtd. FederalTerritory Charteringof 100 100 ofLabuan, marinevessel Malaysia

Hanvoir(L)Ltd. FederalTerritory Inactive 100 100 ofLabuan, Malaysia

* AuditedbyafirmotherthanErnst&Young.

** PursuanttoSection550oftheCompaniesAct2016,SeaAlphaSdn.Bhd.andNavitexShippingSdn.Bhd.hadon4July2018beenstruckofffromtheRegister.

# PursuanttoSection151(4)oftheLabuanCompaniesAct1990,SealinkResources(L)Ltd.andSealinkMarine(L)Ltd.hadon6September2017beenstruckofffromtheRegister.



16. Investment in an associate

TheGroup’s interest in theassociate isaccounted forusing theequitymethod in theconsolidatedfinancialstatements.Reconciliationwiththecarryingamountoftheinvestmentinconsolidatedfinancialstatementsissetoutbelow:


Unquotedshares,atcost 3,500,000 3,500,000 Shareofpostacquisitionreserves (2,119,208) 295,158 1,380,792 3,795,158

Detailsoftheassociateareasfollows:

Percentage of Country of equity held Name of associate incorporation Principal activity 2018 2017 % %

LogistineSdn.Bhd.* Malaysia Providingoffshore 25 25 supportvessels,equipment andengineeringconsultation foroilandgasactivities

* AuditedbyafirmotherthanErnst&Young.

ThesummarisedfinancialinformationoftheassociatenotadjustedfortheproportionofownershipinterestheldbytheCompanyisasfollows:

2018 2017 RM RM

Assets and liabilities: Non-currentassets 29,789,631 49,188,483 Currentassets 2,509,179 4,205,434 Totalassets 32,298,810 53,393,917

Non-currentliabilities - (3,559,871) Currentliabilities (24,863,844) (23,744,782) Totalliabilities (24,863,844) (27,304,653)

Results: Revenue - 298,480 Lossfortheyear (3,632,454) (4,086,609)



17. Investment in a joint venture

TheGroup’sinterestinthejointventureisaccountedforusingtheequitymethodintheconsolidatedfinancialstatements.Reconciliationwiththecarryingamountoftheinvestmentinconsolidatedfinancialstatementsissetoutbelow:

Group 2018 2017 RM RM Unquotedshares,atcost -Ordinaryshares 1,959,998 1,959,998 -Redeemablepreferenceshares 5,556,004 5,556,004 7,516,002 7,516,002 Shareofpostacquisitionreserves (1,076,408) (777,450)

6,439,594 6,738,552

Detailsofthejointventureareasfollows:

Percentage of Country of equity held Name of joint venture incorporation Principal activities 2018 2017 % % Joint venture of Era Surplus Sdn. Bhd.

SeastenSdn.Bhd. Malaysia Vesselownerandoperator 49 49 Thesummarisedfinancialinformationofthejointventurenotadjustedfortheproportionofownershipinterest

heldbytheCompanyisasfollows:

2018 2017 RM RM Assets and liabilities: Non-currentassets 7,995,275 8,945,859 Currentassets 3,599,026 2,398,482 Totalassets 11,594,301 11,344,341

Currentliabilities (2,796,350) (1,936,271) Totalliabilities (2,796,350) (1,936,271)

Results: Revenue 3,946,610 4,617,012 Lossfortheyear (610,119) (1,519,859)



18. Inventories

Group 2018 2017 RM RM Cost Consumables 1,813,236 1,588,846 Machineryandequipment 1,507,586 1,461,855 Rawmaterials 11,684,174 11,563,331 Vesselpartsandmaterials 289,688 314,862 Completedvessel - 19,221,849 15,294,684 34,150,743

Includedincompletedvesselandvesselswork-in-progressare:

Interestexpense - 451,294

19. Trade and other receivables

Group Company 2018 2017 2018 2017 RM RM RM RM Current

Trade receivables Thirdparties 19,711,736 15,418,716 - - Amountduefromajointventure 1,377,753 1,729,767 - - Less:Allowanceforimpairment ofthirdparties (615,213) (1,051,561) - - Tradereceivables,net 20,474,276 16,096,922 - - Other receivables Refundabledeposits 759,670 725,806 2,000 2,000 Otherreceivables -Others 2,040,803 1,344,686 - 113,792 -Subsidiaries - - 662,071 840,671 Financeleasereceivable 8,004,322 - - - Amountduefromanassociate 22,685,753 21,159,256 - - Amountduefromsubsidiaries - - 108,412,990 66,763,386 Amountduefromholdingcompany 1,559 - - - Amountduefromajointventure 939,376 135,184 - - 34,431,483 23,364,932 109,077,061 67,719,849 Less:Allowanceforimpairment ofotherreceivables (536,154) (536,154) - - 33,895,329 22,828,778 109,077,061 67,719,849 54,369,605 38,925,700 109,077,061 67,719,849 Non-current

Other receivables Amountduefromanassociate - 394,251 - - Financeleasereceivable 13,541,559 - - - 13,541,559 394,251 - - Totaltradeandotherreceivables 67,911,164 39,319,951 109,077,061 67,719,849



19. Trade and other receivables (continued)

(a) Trade receivables

Tradereceivablesarenon-interestbearingandaregenerallyon30to60day(2017:30to60day)terms.Theyarerecognisedattheiroriginalinvoiceamountswhichrepresenttheirfairvaluesoninitialrecognition.Tradereceivablesarepartiallysecured.

Ageinganalysisoftradereceivables

TheageinganalysisoftheGroup’stradereceivablesisasfollows:


Neitherpastduenorimpaired 3,894,945 4,529,299

1to30dayspastduenotimpaired 4,348,139 4,731,831 31to60dayspastduenotimpaired 2,655,658 2,416,869 61to90dayspastduenotimpaired 1,231,939 1,931,696 91to120dayspastduenotimpaired 996,254 742,697 Morethan121dayspastduenotimpaired 7,347,341 1,744,530 16,579,331 11,567,623 Impaired 615,213 1,051,561 21,089,489 17,148,483

Receivablesthatareneitherpastduenorimpaired

TradeandotherreceivablesthatareneitherpastduenorimpairedarecreditworthydebtorswithgoodpaymentrecordswiththeGroup.

NoneoftheGroup’stradereceivablesthatareneitherpastduenorimpairedhavebeenrenegotiatedduringthefinancialyear.

Receivablesthatarepastduebutnotimpaired

TheGrouphastradereceivablesamountingtoRM16,579,331(2017:RM11,567,623)thatarepastdueatthereportingdatebutnotimpaired.

Thebalancesofreceivablesthatarepastduebutnotimpairedareunsecuredinnature.

Receivablesthatareimpaired

TheGroup’stradereceivablesthatareimpairedatthereportingdateandthemovementoftheallowanceaccountsusedtorecordtheimpairmentareasfollows:


Totalreceivables 615,213 1,051,561 Less:Allowanceforimpairment (615,213) (1,051,561) - -




(a) Trade receivables (continued) Group 2018 2017 RM RM Movementinallowanceaccounts: At1January 1,051,561 497,443 Chargefortheyear 742 608,508 Reversalofimpairmentlosses(Note5) (437,090) (36,000) Writtenoff - (18,390) At31December 615,213 1,051,561 Tradereceivablesthatareindividuallydeterminedtobeimpairedatthereportingdaterelatetodebtors

thathavedefaultedonpaymentsandtherearedoubtsastotherecoverability.Thesereceivablesarenotsecuredbyanycollateralorcreditenhancements.

(b) Amount due from subsidiaries

Thisamountisunsecuredandisrepayableondemand.

Included in theamountdue fromsubsidiariesof theCompany isanamountofRM102,684,071(2017:RM62,458,053)whichbearsinterestatratesrangingfrom3.43%-5.62%(2017:3.53%)perannum.

(c) Amount due from an associate


IncludedintheamountduefromanassociateoftheGroupisanamountofRM394,251(2017:RM4,991,935)whichbearsinterestchargeat6.95%(2017:6.95%)perannumandisfullyrepayableby2019.

(d) Amounts due from a joint venture and holding company

Theseamountsareunsecured,non-interestbearingandarerepayableondemand.

(e) Other receivables

Thisamountisunsecured,non-interestbearingandisrepayableondemand.

(f) Finance lease receivable

TheGroupisalessorinconnectionwiththeleasingofavessel,namelyHarmoniDua,whichtheGroupprovides to itscustomer thecharterof thevesselwithsubsequentpurchase.TheGrouprecognisesareceivableintheamountofthenetinvestmentinthelease.Theleasepaymentsmadebythelesseearesplitintoaninterestcomponentandaprincipalcomponentusingtheeffectiveinterestmethod.Theleasereceivableisreducedbytheprincipalreceived.Theinterestcomponentofthepaymentsisrecognisedasfinanceincomeintheprofitorloss.Thefollowingtableshowshowtheamountofthenetinvestmentinafinanceleaseisdetermined:




(f) Finance lease receivable (continued)


Minimumleasepayments 21,545,881 - Unearnedfinanceincome (3,711,666) - Presentvalueoftheminimumleasepayments 17,834,215 -

Thefollowingtablepresentsthegrossinvestmentamountsandthepresentvalueofpayableminimumleasepayments:

Group 2018 2017 RM RM Minimum lease payments: Notlaterthan1year 8,004,322 - Laterthan1yearbutnotlaterthan5years 13,541,559 -

21,545,881 -

Present value of minimum lease payments: Notlaterthan1year 5,851,145 - Laterthan1yearbutnotlaterthan5years 11,983,070 - 17,834,215 -

Thediscountrateimplicitinthefinanceleaseis14.13%(2017:Nil)perannumandisfullyrepayableby2021.

20. Contract balances

Group 2018 2017 RM RM Contract assets

At1January - - Netrevenuerecognisedduringtheyear 2,084,573 - At31December 2,084,573 - ContractassetsprimarilyrelatetotheGroup’srightstoconsiderationforworkcompletedonshiprepaircontracts

butnotyetbilledatthereportingdate.Typically,theamountwillbebilledwithin30daysandpaymentisexpectedwithin90days.



20. Contract balances (continued)

Group

2018 2017 RM RM Contract liabilities At1January - - Paymentreceivedinadvance (583,392) - At31December (583,392) - Contractliabilitiesprimarilyrelatetoadvanceconsiderationreceivedfromacustomerforshiprepaircontractsfor

whichrevenueisrecognisedovertimefortherepairwork.Thecontractliabilitiesareexpectedtoberecognisedasrevenueoveraperiodof90days.

Therewerenocontractassetsorcontractliabilitiesasat1January2017and31December2017.

21. Other current assets Group Company 2018 2017 2018 2017 RM RM RM RM

Prepaymentforinsurance 197,214 195,147 - - Otherprepaidoperatingexpenses 244,582 344,599 - - Contractassetsforshiprepair contracts(Note20) 2,084,573 - - - 2,526,369 539,746 - -

22. Investment securities

Group 2018 2017 RM RM Wholesalemoneymarketfund quotedinMalaysia,atmarketvalue 66,434 64,641

23. Cash and bank balances


Cashatbanksandonhand 26,733,403 17,974,007 8,553,076 234,231 Shorttermdepositswithlicensedbanks 2,042,579 12,183,799 - - Cashandbankbalances 28,775,982 30,157,806 8,553,076 234,231 DepositsoftheGroupwithlicensedbanksamountingtoRM1,803,262(2017:RM12,183,799)arepledgedto

banksforbankguaranteesissuedtothirdpartiesandforshorttermfacilitiesgrantedbythebankstotheGroup.



23. Cash and bank balances (continued)

ShorttermdepositwithalicencedbankoftheGroupamountingtoRM203,309(2017:Nil)ispledgedassecurityforthebankguaranteeissuedinfavourofathirdparty.

In2017,includedincashandbankbalanceswasanamountofRM465,766whichwasrestrictedinuseassetbyabankinordertomaintaintheliquidityrequirements.

TheeffectiveinterestratesandthematurityofdepositsoftheGroupasatthereportingdateareasfollows:

Interest rate Maturity 2018 2017 2018 2017 % % Days Days

Depositswithlicensedbanks 3.10 - 3.35 2.90-3.10 30 - 365 15-365

Forthepurposeofthestatementsofcashflows,cashandcashequivalentscomprisethefollowingasatthereportingdate:


Cashandbankbalances 28,775,982 30,157,806 8,553,076 234,231 Bankoverdrafts(Note24) (14,510,506) (28,775,830) - - 14,265,476 1,381,976 8,553,076 234,231 Cashatbankrestrictedinuse - (465,766) - - Shorttermdepositsrestrictedinuse (209,159) - - - Shorttermdepositspledgedassecurity (1,803,262) (12,183,799) - - Cashandcashequivalents 12,253,055 (11,267,589) 8,553,076 234,231

24. Loans and borrowings

Group 2018 2017 Maturity RM RM Current Secured: Bankoverdrafts(Note23) Ondemand 14,510,506 28,775,830 Obligationsunderfinanceleases(Note30(b)) 2019 4,800 44,336 Revolvingcredits 2019 44,799,482 46,000,000 Termloans 2019 27,897,507 25,072,532 87,212,295 99,892,698 Non-current Secured: Obligationsunderfinanceleases(Note30(b)) 2020 1,200 41,223 Termloans 2020-2022 56,196,828 87,803,708 56,198,028 87,844,931 Totalloansandborrowings 143,410,323 187,737,629



24. Loans and borrowings (continued)

Theremainingmaturitiesoftheloansandborrowingsasat31Decemberareasfollows:


Ondemandorwithinoneyear 87,212,295 99,896,349 Laterthan1yearbutnotlaterthan2years 19,902,766 39,455,438 Laterthan2yearsbutnotlaterthan5years 36,295,262 48,385,842 143,410,323 187,737,629 Bankoverdrafts

BankoverdraftsweresecuredbychargesoverleaseholdlandandbuildingsoftheGroup,legalmortgageonvesselandfixeddepositspledgedtothebank.

Obligationsunderfinanceleases

Thisobligationwassecuredbyachargeovertheleasedassets(Note13).

Revolvingcredits

Revolvingcreditsaresecuredbycorporateguaranteeby theholdingcompany,achargeover theGroup’sleaseholdlandandbuildings,fixeddepositspledgedtothebank,andafreeholdlandownedbyasubsidiary.

Termloans

Theseloansaresecuredbylegalchargesovercertainvessels,assignmentoftimecharterproceedsandleaseholdlandandbuildingsoftheGroup,corporateguaranteebyholdingcompanyandachargeoverfixeddepositsofthesubsidiaries.

Theeffectiveinterestratesat31Decemberforloansandborrowingsareasfollows:

Group 2018 2017 % %

Bankoverdrafts 7.40 – 7.54 7.15–8.29 Obligationsunderfinanceleases - 4.55–4.81 Termloans -Fixedrate 6.17 - -Floatingrates 5.99 – 6.42 4.74–6.72 Revolvingcredits 5.33 – 5.62 5.07–5.90

25. Trade and other payables

Group Company 2018 2017 2018 2017 RM RM RM RM Trade payables Thirdparties 8,375,634 8,323,812 - -



25. Trade and other payables (continued)

Group Company 2018 2017 2018 2017 RM RM RM RM Other payables Accruedoperatingexpenses 6,061,741 6,813,428 636,403 527,390 Depositsreceived 59,000 91,000 - - Otherpayables 17,269,891 13,142,802 559,933 574,394 Amountduetoholdingcompany 14,916,189 4,000,000 14,016,189 4,000,000 Amountduetosubsidiaries - - 123,667,729 81,345,050 38,306,821 24,047,230 138,880,254 86,446,834 Totaltradeandotherpayables 46,682,455 32,371,042 138,880,254 86,446,834

(a) Trade payables

Theseamountsarenon-interestbearing.Tradepayablesarenormallysettledon30to90day(2017:30to90day)terms.

(b) Other payables

Theseamountsarenon-interestbearing.IncludedinotherpayablesoftheGroupisanamountofRM9,695,770(2017:RM10,066,543)duetocompaniesinwhichcertainDirectorsoftheGrouphavesubstantialfinancialinterests.

(c) Amount due to holding company

Thisamountisunsecured,non-interestbearingandisrepayableondemand.

(d) Amount due to subsidiaries


Included in theamountdue to subsidiariesof theCompany is anamount ofRM113,318,567 (2017:RM70,170,259)whichbearsinterestatratesrangingfrom3.43%to8.89%(2017:3.53%to5.71%)perannum.

26. Deferred tax liabilities

Property, Unutilised Unabsorbed plant and tax capital equipment losses allowances Others Total Group RM RM RM RM RM

At1January2017 50,029,150 (9,545,330) (12,109,464) - 28,374,356 Recognisedinprofitor loss(Note11) (1,089,192) 863,417 (1,709,326) - (1,935,101) At31December2017 48,939,958 (8,681,913) (13,818,790) - 26,439,255 and1January2018 Recognisedinprofitor loss(Note11) (5,986,454) (146,397) 3,308,704 (112,231) (2,936,378) At31December2018 42,953,504 (8,828,310) (10,510,086) (112,231) 23,502,877



26. Deferred tax liabilities (continued)

Deferredtaxassetshavenotbeenrecognisedinrespectofthefollowingitems:


Unutilisedtaxlosses 51,799,214 40,719,376 Unabsorbedcapitalallowances 12,859,878 26,039,994 Others 5,427,034 5,427,034 70,086,126 72,186,404

DeferredtaxassetshavenotbeenrecognisedinrespectoftheaboveitemsbecauseitisnotprobablethatfuturetaxableprofitswillbeavailableagainstwhichtheGroupcanusethebenefitstherefrom.

Theuseofthesetaxlossesissubjecttotheagreementofthetaxauthorityandcompliancewithcertainprovisionsofthetaxlegislationoftherespectivecountriesinwhichthecompaniesoperate.Theunrecognisedtaxlosseswillexpirein2025.Otherlossesmaybecarriedforwardindefinitelysubjecttotheconditionsimposedbylawincludingtheretentionofmajorityshareholdersasdefined.

27. Share capital

Amount Number of Share Share ordinary shares capital premium Total RM RM RM Issued and fully paid

Group/Company

Balanceasat1January2017 500,000,000 250,000,000 79,086,883 329,086,883 Transferfromsharepremium accountpursuanttothe CompaniesAct2016 - 79,086,883 (79,086,883) - Balanceasat31December2017, 31December2018 500,000,000 329,086,883 - 329,086,883 TheholdersofordinarysharesareentitledtoreceivedividendsasandwhendeclaredbytheCompany.All

ordinarysharescarryonevotepersharewithoutrestrictionsandrankequallywithregardstotheCompany’sresidualassets.

TheCompaniesAct2016(“Act”)whichbecameeffectiveon31January2017,abolishedtheconceptofauthorisedsharecapitalandparvalueofsharecapital.Consequently,theamountstandingtothecreditofthesharepremiumbecomespartoftheCompany’ssharecapitalpursuanttothetransitionalprovisionssetoutinSection618(2)oftheAct.Notwithstandingthisprovision,theCompanymaywithin24monthsfromthecommencementoftheAct,usetheamountstandingtothecreditofitssharepremiumofRM79,086,883forpurposesassetoutinSection618(3)oftheAct.Thereisnoimpactonthenumbersofordinarysharesinissueortherelativeentitlementofanyofthemembersasaresultofthistransition.



28. Other reserves

Foreign currency translation reserve Total Group RM RM

At 1 January 2017 72,036,146 72,036,146

Othercomprehensiveincome: Foreigncurrencytranslation (19,588,334) (19,588,334) At 31 December 2017 and 1 January 2018 52,447,812 52,447,812

Othercomprehensiveincome: Foreigncurrencytranslation 3,536,973 3,536,973

At 31 December 2018 55,984,785 55,984,785

Foreign currency translation reserve

TheforeigncurrencytranslationreserverepresentsexchangedifferencesarisingfromthetranslationofthefinancialstatementsofforeignoperationswhosefunctionalcurrenciesaredifferentfromthatoftheGroup’spresentationcurrency.

29. Related party transactions

(a) Sale and purchase of goods and services

Inadditiontotherelatedpartyinformationdisclosedelsewhereinthefinancialstatements,thefollowingsignificanttransactionsbetweentheGroupandtheCompanyandrelatedpartiestookplaceattermsagreedbetweenthepartiesduringthefinancialyear:

Group Company 2018 2017 2018 2017 RM RM RM RM Transactionswithholdingcompany

Loansfromholdingcompany - - 10,000,000 4,000,000 Transactionswithsubsidiaries

Sundryincome - - (48,000) (5,067) Managementfee - - (1,936,087) (2,498,822) Interestincome - - (3,820,900) (1,606,147) Interestexpenses - - 5,441,414 2,013,353 Loans(to)/fromsubsidiaries - - (5,798,811) 5,082,242 Transactionswitharelatedcompany

Rentalexpense 120,000 120,000 12,000 12,000



29. Related party transactions (continued)

(a) Sale and purchase of goods and services (continued)

Group Company 2018 2017 2018 2017 RM RM RM RM Transactionswithcompaniesinwhich certainDirectorshaveinterests

Charterhireincome (2,272,104) - - - Contractrevenue (42,909) - - - Sundryincome (442,135) - - - Manpowersupply - (20,758) - - Charterhirefee 210,000 - - - Rentalexpense 65,544 94,644 - - Legalandprofessionalfees 61,156 60,564 - - Relatedcompanies:

RelatedcompaniesarecompanieswithinSealinkHoldingsSdn.Bhd.group.

(b) Compensation of key management personnel

TheremunerationofDirectorsandothermembersofkeymanagementduringtheyearwasasfollows:


Short-termemployeebenefits 3,292,616 4,469,620 1,731,541 2,706,188 Definedcontributionplan 280,304 435,610 155,918 282,537 3,572,920 4,905,230 1,887,459 2,988,725

30. Commitments

(a) Capital commitments

Capitalexpenditureasatthereportingdateisasfollows:

Group 2018 2017 RM RM Capitalexpenditure Approvedbutnotcontractedfor: Property,plantandequipment 126,968,720 126,968,720

(b) Finance lease commitments

TheGrouphadfinanceleasesforcertainitemsofmotorvehicles(Note13).Theseleasesdonothavetermsofrenewal,buthadpurchaseoptionsatnominalvaluesattheendoftheleaseterm.



30. Commitments (continued)

(b) Finance lease commitments (continued)

Futureminimumleasepaymentsunderfinanceleasestogetherwiththepresentvalueofthenetminimumleasepaymentsareasfollows:

Group 2018 2017 RM RM Minimum lease payments: Notlaterthan1year 4,800 46,728 Laterthan1yearbutnotlaterthan2years 1,200 30,496 Laterthan2yearsbutnotlaterthan5years - 11,991 Totalminimumleasepayments 6,000 89,215 Less:Amountsrepresentingfinancecharges - (3,656) Presentvalueofminimumleasepayments 6,000 85,559 Present value of payments:

Notlaterthan1year 4,800 44,336 Laterthan1yearbutnotlaterthan2years 1,200 27,788 Laterthan2yearsbutnotlaterthan5years - 13,435

Presentvalueofminimumleasepayments 6,000 85,559 Less:Amountduewithin12months(Note24) (4,800) (44,336) Amountdueafter12months(Note24) 1,200 41,223

31. Financial assets and financial liabilities

31.1 Financial assets

Group Company 2018 2017 2018 2017 RM RM RM RM Financial assets at fair value through profit or loss

Investmentsecurities 66,434 64,641 - - Debt instruments at amortised cost

Tradeandotherreceivables 67,911,164 39,319,951 109,077,061 67,719,849 Cashandbankbalances 28,775,982 30,157,806 8,553,076 234,231 96,687,146 69,477,757 117,630,137 67,954,080 Total financial assets 96,753,580 69,542,398 117,630,137 67,954,080



31. Financial assets and financial liabilities (continued)

31.2 Financial liabilities Group Company 2018 2017 2018 2017 RM RM RM RM Current interest-bearing loans and borrowings

Bankoverdrafts 14,510,506 28,775,830 - - Obligationsunderfinanceleases 4,800 44,336 - - Revolvingcredits 44,799,482 46,000,000 - - Termloans 27,897,507 25,072,532 - - 87,212,295 99,892,698 - - Non-current interest-bearing loans and borrowings

Obligationsunderfinanceleases 1,200 41,223 - - Termloans 56,196,828 87,803,708 - - 56,198,028 87,844,931 - - Total interest-bearing loans and borrowings 143,410,323 187,737,629 - -

Other financial liabilities at amortised cost, other than interest-bearing loans and borrowings

Tradeandotherpayables 46,682,455 32,371,042 138,880,254 86,446,834 Total financial liabilities at amortised cost 46,682,455 32,371,042 138,880,254 86,446,834 31.3 Fair value

(a) Fair values of financial instruments not carried at fair value

Setoutbelow,isacomparisonofthecarryingamountsandfairvaluesoftheGroup’sfinancialinstruments,byclass,otherthanthosewithcarryingamountswhicharereasonableapproximationsoffairvalues:

Carrying amount Fair value 2018 2017 2018 2017 RM RM RM RM Group Financial liabilities:

Non-current: Interest-bearingloansandborrowings -Obligationsunderfinanceleases 1,200 41,223 1,200 41,165 -Fixedratetermloan 27,911,296 - 27,207,125 - Themethodsandassumptionsusedtoestimatethefairvaluesofthefinancialinstrumentsnotcarriedat

fairvalueareasfollows:



31. Financial assets and financial liabilities (continued)

31.3 Fair value (continued)

(a) Fair values of financial instruments not carried at fair value (continued)

Loans,advancesandfinancing

Thefairvaluesoffixedrateloans/financingwithremainingmaturityoflessthanoneyearandvariablerateloans/financingareestimatedtoapproximatetheircarryingamounts.Forfixedrateloans/financingwithremainingmaturityofmorethanoneyear,thefairvaluesareestimatedbasedondiscountedcashflowsusingprevailingmarketratesofloans/financingofsimilarcreditrisksandmaturity.Thefairvaluesofimpairedloans/financingarerepresentedbytheircarryingamounts,netofanycollectiveandindividualassessmentallowances,beingtheexpectedrecoverableamount.

(b) Determination of fair value

Thefollowingareclassesoffinancial instruments thatarenotcarriedat fairvalueandwhosecarryingamountsarereasonableapproximationoffairvalues:

Note

Tradeandotherreceivables 19 Tradeandotherpayables 25 Loansandborrowings(currentandnon-current, 24 exceptnon-currentfixedratesloansandborrowings)

Thecarryingamountsofthesefinancialassetsandliabilitiesarereasonableapproximationoffairvaluesduetotheirshort-termnature.

Financial guarantees

Thefairvalueoffinancialguaranteesisdeterminedbasedontheprobabilityweighteddiscountedcashflowmethod.Theprobabilityhasbeenestimatedandassignedforthefollowingkeyassumptions:

- Thelikelihoodoftheguaranteedpartydefaultingwithintheguaranteedperiod;

- Theexposureontheportionthatisnotexpectedtoberecoveredduetotheguaranteedparty’sdefault;

- Theestimatedlossexposureifthepartyguaranteedweretodefault

32. Fair value measurement

Fair value hierarchy

TheGroupclassifiesfairvaluemeasurementusingafairvaluehierarchythatreflectsthesignificanceoftheinputsusedinmakingthemeasurements.Thefairvaluehierarchyhasthefollowinglevels:

Level1- Quotedpricesinactivemarketsforidenticalassetsorliabilities;

Level2- InputsotherthanquotedpricesincludedinLevel1thatareobservablefortheassetorliability,eitherdirectlyorindirectly;and

Level3- Inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs). ThefollowingtableprovidesthefairvaluemeasurementhierarchyoftheGroup’sassetsandliabilities.



32. Fair value measurement (continued)

Quantitativedisclosuresfairvaluemeasurementhierarchyforassetsandliabilitiesasat31Decemberareasfollows:

Level 1 Level 2 Level 3 Total RM RM RM RM Group

At 31 December 2018

Assets measured at fair value: Wholesalemoneymarketfund 66,434 - - 66,434 Liabilities for which fair values are disclosed: (Note 31.3(a)) Interest-bearingloansandborrowings -Non-currentobligationsunder financeleases - 1,200 - 1,200 -Non-currentfixedratetermloan - 27,207,125 - 27,207,125

At 31 December 2017

Assets measured at fair value: Wholesalemoneymarketfund 64,641 - - 64,641 Liabilities for which fair values are disclosed: (Note 31.3(a)) Interest-bearingloansandborrowings -Non-currentobligationsunder financeleases - 41,165 - 41,165 TherehavebeennotransfersbetweenLevel1andLevel2duringthefinancialyear.

33. Financial risk management objectives and policies

TheGroupandtheCompanyareexposedtofinancialrisksarisingfromtheiroperationsandtheuseoffinancialinstruments.TheGroup’soverallfinancialriskmanagementstrategyseekstominimisepotentialadverseeffectsoffinancialperformanceoftheGroup.Thekeyfinancialrisksincludecreditrisk,liquidityrisk,interestrateriskandforeigncurrencyrisk.

FinancialriskmanagementpoliciesareperiodicallyreviewedandapprovedbytheBoardofDirectorsandexecutedbythemanagement.TheauditcommitteeofSealinkInternationalBerhadprovidesindependentoversighttotheeffectivenessoftheriskmanagementprocess.

Itisandhasbeenthroughoutthecurrentandpreviousfinancialyear,theGroup’sandtheCompany’spolicythatnoderivativesshallbeundertaken.

ThefollowingsectionsprovidedetailsregardingtheGroup’sandCompany’sexposuretotheabove-mentionedfinancialrisksandtheobjectives,policiesandprocessesforthemanagementoftheserisks.



33. Financial risk management objectives and policies (continued)

(a) Credit risk

Creditriskistheriskoflossthatmayariseonoutstandingfinancialinstrumentsshouldacounterpartydefaultonitsobligations.Atthereportingdate,theGroup’sexposuretocreditriskarisesprimarilyfromtradeandotherreceivables.TheCompany’sexposuretocreditriskarisesprincipallyfromloansandadvancestosubsidiariesandfinancialguaranteegiventobanksforcreditfacilitiesgrantedtosubsidiaries.

Financialassetsthatareneitherpastduenorimpaired

InformationregardingtradeandotherreceivablesthatareneitherpastduenorimpairedisdisclosedinNote19.Depositswithbanksandotherfinancialinstitutionsthatareneitherpastduenorimpairedareplacedwithorenteredintowithreputablefinancialinstitutionsorcompanieswithhighcreditratingsandnohistoryofdefault.

Financialassetsthatareeitherpastdueorimpaired

InformationregardingfinancialassetsthatareeitherpastdueorimpairedisdisclosedinNote19. (b) Liquidity risk

LiquidityriskistheriskthattheGrouportheCompanywillencounterdifficultyinmeetingfinancialobligationsduetoshortageoffunds.TheGroup’sandtheCompany’sexposuretoliquidityriskarisesprimarilyfrommismatchesofthematuritiesoffinancialassetsandliabilities.TheGroupadoptsaprudentapproachtomanagingitsliquidityrisk.TheGroupalwaysmaintainssufficientcashandcashequivalents,andhasavailablefundingthroughadiversesourceofcommittedanduncommittedcreditfacilitiesfromvariousbanks.

Analysisoffinancialinstrumentsbyremainingcontractualmaturities

ThetablebelowanalysesthematurityprofileoftheGroup’sandtheCompany’sfinancialliabilitiesbasedoncontractualundiscountedrepaymentobligations.

On demand or within One to one year five years Total RM RM RM Group

At 31 December 2018

Financialliabilities: Tradeandotherpayables 46,682,455 - 46,682,455 Loansandborrowings 91,686,344 60,091,081 151,777,425 Totalundiscountedfinancialliabilities 138,368,799 60,091,081 198,459,880 At 31 December 2017

Financialliabilities: Tradeandotherpayables 32,371,042 - 32,371,042 Loansandborrowings 106,488,906 93,862,579 200,351,485 Totalundiscountedfinancialliabilities 138,859,948 93,862,579 232,722,527




(b) Liquidity risk (continued)

On demand or within One to one year five years Total RM RM RM Company At 31 December 2018

Financialliabilities: Tradeandotherpayables 138,880,254 - 138,880,254 Financialguaranteecontracts* 143,758,918 - 143,758,918 Totalundiscountedfinancialliabilities 282,639,172 - 282,639,172 At 31 December 2017

Financialliabilities: Tradeandotherpayables 86,446,834 - 86,446,834 Financialguaranteecontracts* 173,087,669 - 173,087,669 Totalundiscountedfinancialliabilities 259,534,503 - 259,534,503 * Basedonthemaximumamountthatcanbecalledunderthefinancialguaranteecontracts.

(c) Interest rate risk

InterestrateriskistheriskthatthefairvalueorfuturecashflowsoftheGroup’sandtheCompany’sfinancialinstrumentswillfluctuatebecauseofchangesinmarketinterestrates.

TheGroup’sandtheCompany’sexposuretomarketriskforchangesininterestratesariseprimarilyfromtheirloansandborrowings.

Sensitivityanalysisforinterestraterisk

Atthereportingdate,ifinterestrateshadbeenlower/higherby10basispointswithallothervariablesheldconstant,theGroup’slossnetoftaxwouldhavebeenRM128,511(2017:RM160,013)higher/lower,arisingmainlyasaresultoflower/higherinterestexpenseonfloatingrateloansandborrowings.Theassumedmovementinbasispointsforinterestratesensitivityanalysisisbasedonthecurrentlyobservablemarketenvironment.

(d) Foreign currency risk

Foreigncurrencyriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinforeignexchangerates.

TheGrouphastransactionalcurrencyexposuresarisingfromsalesandpurchasesthataredenominatedinacurrencyotherthantherespectivefunctionalcurrencyofGroupentities,primarilyRinggitMalaysia(RM),SingaporeDollar(SGD)andUnitedStatesDollars(USD).TheforeigncurrenciesinwhichthesetransactionsaredenominatedaremainlySingaporeDollar(SGD),UnitedStatesDollars(USD)andBruneiDollar(BND).




(d) Foreign currency risk (continued)

TheGroupuses forwardcurrencycontracts tominimise theexposuresarising fromsalesaftera firmcommitmenthasbeenentered.ItistheGroup’spolicynottoenterintoforwardcontractsuntilfirmcommitmentisinplace.

Foreignexchangeexposuresintransactionalcurrenciesotherthanfunctionalcurrenciesoftheoperatingentitiesarekept toanacceptable level.TheGroupmaintainsanaturalhedge,wheneverpossible,byborrowingorholdingcashandcashequivalentsdenominatedinforeigncurrencies.

Sensitivityanalysisforforeigncurrencyrisk

Thefollowingtabledemonstratesthesensitivityof theGroup’s lossnetof taxtoareasonablypossiblechangeintheSGD,USDandBNDagainstRMexchangerate,RMandUSDagainstSGDexchangerateandSGDandRMagainstUSDexchangeratewithallothervariablesheldconstant.

Group Company Loss net of tax Loss net of tax 2018 2017 2018 2017 RM RM RM RM

SGD/RM-strengthenby5% (416,641) 639,656 34 1,938 SGD/RM-weakenby5% 416,641 (639,656) (34) (1,938) USD/RM-strengthenby5% (930,649) (1,123,819) 57 1,442 USD/RM-weakenby5% 930,649 1,123,819 (57) (1,442) BND/RM-strengthenby5% - (10,622) - - BND/RM-weakenby5% - 10,622 - - RM/SGD-strengthenby5% 304,033 (117,878) - - RM/SGD-weakenby5% (304,033) 117,878 - - USD/SGD-strengthenby5% 2,758,936 (870,627) - - USD/SGD-weakenby5% (2,758,936) 870,627 - - SGD/USD-strengthenby5% (342,448) (51,946) - - SGD/USD-weakenby5% 342,448 51,946 - - RM/USD-strengthenby5% (652,255) (148,712) - - RM/USD-weakenby5% 652,255 148,712 - -



34. Capital management

TheGroup’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sabilitytocontinueasagoingconcernandtomaintainanoptimalcapitalstructuresoastomaximiseshareholdersvalue.Inordertomaintainorachieveanoptimalcapitalstructure,theGroupmayadjustthedividendpayment,returncapitaltoshareholders,obtainnewfinancingfacilitiesordisposeassetstoreduceborrowings.

Managementmonitorscapitalbasedon theGroup’sand theCompany’sgearing ratio. TheGroupand theCompanyarealsorequiredbycertainbankstomaintainagearingratioofnotexceedingcertainpercentagevaryingbetween100%and200%.TheGroup’sandtheCompany’sstrategiesaretomaintaingearingratioofnotexceeding100%.

Thegearingratioiscalculatedastotalloansandborrowingsdividedbyequitycapital.

Group 2018 2017 Note RM RM

Loansandborrowings 24 143,410,323 187,737,629

Totalequity 368,256,221 385,135,453 Gearingratio 38.94% 48.75%

35. Segment information

Formanagementpurposes,theGroupisorganisedintobusinessunitsbasedontheirproductsandservices,andhastworeportableoperatingsegmentsasfollows:

I. Shipbuilding

II. Charteringofvessels

III. Othersconsistofinvestmentholdingandlettingofproperties

Exceptasindicatedabove,nooperatingsegmentshavebeenaggregatedtoformtheabovereportableoperatingsegments.

Managementmonitorstheoperatingresultsofitsbusinessunitsseparatelyforthepurposeofmakingdecisionsaboutresourceallocationandperformanceassessment.Segmentperformanceisevaluatedbasedonoperatingprofitorlosswhich,incertainrespectsasexplainedinthetablebelow,aremeasureddifferentlyfromoperatingprofitorlossintheconsolidatedfinancialstatements.Groupfinancing(includingfinancecostsrecognisedinprofitorloss)andincometaxesaremanagedonagroupbasisandarenotallocatedtooperatingsegments.

Transferpricesbetweenoperatingsegmentsareonanarm’slengthbasisinamannersimilartotransactionswiththirdparties.



35.

Seg

men

t in

form

atio

n (c

on

tinu

ed)

Per

con

solid

ated

Adj

ustm

ents

and

fi

nanc

ial

Shi

pbui

ldin

g

C

hart

erin

g

Oth

ers

elim

inat

ions

sta

tem

ents

2018

20

17

2018

20

17

2018

20

17

2018

20

17

20

18

2017

R

M

RM

R

M

RM

R

M

RM

R

M

RM

N

otes

R

M

RM

Rev

enue

:

Externalcus

tomers

25,0

31,5

85

21,866

,721

44

,756

,205

53

,318

,084

-

- -

-

69,7

87,7

90

75,184

,805

Inter-se

gmen

t4,

382,

404

3,52

5,61

018

,313

,521

14

,130

,404

2,

196,

087

2,57

6,82

2(2

4,89

2,01

2)

(20,23

2,83

6)

A

- -

Totalrev

enue

29

,413

,989

25

,392

,331

63

,069

,726

67

,448

,488

2,

196,

087

2,57

6,82

2(2

4,89

2,01

2)

(20,23

2,83

6)

69

,787

,790

75

,184

,805

Res

ults

:

Interestin

come

5,78

6,62

76,16

0,58

83,

290,

096

4,43

1,50

85,

046,

996

3,30

9,98

1(1

2,14

8,69

2)

(10,87

3,50

2)

1,

975,

027

3,02

8,57

5

Dep

reciationan

d

amortisation

3,39

0,80

94,24

5,52

938

,089

,078

42

,139

,796

34

4,08

936

7,36

5 (2

,528

,695

)(2,846

,600

)

39,2

95,2

81

43,906

,090

Othernon

-cas

h

exp

ense

s63

,943

13

1,47

920

3,42

481

5,40

8-

- -

(179

,442

)B

267,

367

767,44

5

Segm

entlos

s(1

,601

,682

)(1,381

,385

)(2

0,45

5,55

3)

(47,89

2,76

4)

(3,3

19,3

06)

(3,291

,309

) 2,

612,

833

2,42

9,27

7C

(2

2,76

3,70

8)

(50,13

6,18

1)

Ass

ets:

Inve

stmen

tinan

assoc

iate

- -

- -

1,38

0,79

23,79

5,15

8-

-

1,38

0,79

23,79

5,15

8

Inve

stmen

tina

jointven

ture

- -

6,43

9,59

46,73

8,55

2-

- -

-

6,43

9,59

46,73

8,55

2

Add

ition

sto

non

-currentassets

1,00

8,75

956

5,34

850

,692

14

,417

,744

-

- -

(13,87

0,00

0)

D

1,05

9,45

11,11

3,09

2

Segm

enta

ssets

163,

053,

320

183,32

9,13

970

7,56

8,57

975

9,63

6,59

659

9,82

5,64

354

8,55

3,51

5(8

87,7

96,1

82)

(858

,716

,848

)E

582,

651,

360

632,80

2,40

2

Segm

entliabilities

97,9

78,4

13 11

7,19

4,26

5 37

6,03

3,79

841

0,72

5,04

619

2,36

0,47

113

8,48

6,21

8(4

51,9

77,5

43)

(418

,738

,580

)F

214,

395,

139

247,66

6,94

9



35. Segment information (continued)

A Inter-segmentrevenuesareeliminatedonconsolidation.

B Othermaterialnon-cashexpensesconsistofthefollowingitemsaspresentedintherespectivenotestothefinancialstatements:

2018 2017 Note RM RM

Inventorieswrittenoff 8 63,938 106,648 Property,plantandequipmentwrittenoff 8 203,429 31,473 Impairmentlossontradeandotherreceivables 8 - 629,324 267,367 767,445

C Thefollowingitemsareaddedto/(deductedfrom)segmentlosstoarriveat“Lossbeforetax”presentedintheGroup’sstatementsofprofitorlossandothercomprehensiveincome:

2018 2017 RM RM

Profitfrominter-segmentsales (7,431,414) (6,811,474) Financecosts 12,148,952 10,830,981 Shareofresultsofanassociate (2,414,366) (1,021,652) Shareofresultsofajointlycontrolledentity (298,958) (950,121) Unallocatedcorporateexpenses 608,619 381,543 2,612,833 2,429,277

D Additionstonon-currentassetsconsistof:

Property,plantandequipment 1,059,451 1,113,092 E Thefollowingitemsareaddedto/(deductedfrom)segmentassetstoarriveattotalassetsreportedinthe

Group’sstatementsoffinancialposition:

2018 2017 RM RM

Investmentinsubsidiaries (395,499,558) (395,763,173) Investmentinanassociate (2,119,208) 295,158 Investmentinajointventure (1,076,408) (777,450) Inter-segmentassets (489,101,008) (462,471,383) (887,796,182) (858,716,848)



35. Segment information (continued)

F Thefollowingitemsareaddedto/(deductedfrom)segmentliabilitiestoarriveattotalliabilitiesreportedintheGroup’sstatementsoffinancialposition:

2018 2017 RM RM

Deferredtaxliabilities 10,725,475 12,272,272 Inter-segmentliabilities (462,703,018) (431,010,852) (451,977,543) (418,738,580)

Geographicalinformation

Revenueandnon-current assets informationbasedon thegeographical locationof customersandassetsrespectivelyareasfollows:

Revenue Non-current assets 2018 2017 2018 2017 RM RM RM RM

Malaysia 66,290,911 71,776,956 435,574,702 491,052,621 Singapore 3,496,879 3,407,849 23,639,928 26,155,777 69,787,790 75,184,805 459,214,630 517,208,398 Non-currentassets informationpresentedaboveconsist of the following itemsaspresented in theGroup’s

statementsoffinancialposition:

2018 2017 RM RM

Property, plant and equipment 455,120,746 506,551,704 Landuserights 4,093,884 10,656,694 459,214,630 517,208,398

36. Authorisation of financial statements for issue

Thefinancialstatementsfortheyearended31December2018wereauthorisedforissueinaccordancewitharesolutionoftheDirectorson12April2019.


LandedProperties

LandIdentification /Postal Address

Lot156,Block5,KualaBaramLandDistrict/[Lot156,KualaBaramIndustrialEstate,98100KualaBaram,Miri,Sarawak]

Lot816,Block1,KualaBaramLandDistrict(formerlyknownasLot1282,KualaBaramLandDistrict)/[Lot816,KualaBaramIndustrialEstate,98100KualaBaram,Miri,Sarawak]

Lot1341,MiriConcessionLandDistrict/[Lot1341,JalanCattleya1,Krokop/PiasauIndustrialEstate,98000Miri,Sarawak]

Lot2142,Block4,MiriConcessionLandDistrict/[Lot2142,JalanCattleya1,Krokop/PiasauIndustrialEstate,98000Miri,Sarawak]




Descriptionof Property

Vacantagriculture

land

Industriallandandbuilding




Vacantindustrial

land


ApproximateAge of theBuilding(Years)

N/A

11

10

10

49

N/A

39

Tenure/Dateof Expiry of

Lease

60years/Leasetermexpireson02.08.2071







Areamore or

less(sq m)

8,050

116,170

1,971

4,700

4,059

123,780

4,039

Net Book Value as at

31.12.2018(RM’000)

175

21,444

337

1,495

595

9,313

1,141

SEALINK SHIPYARD SDN BHD (195853-D)

Usage

N/A

Shipyard,slipwayand

fabricationyard

Vacantworkshopand

vacantworkersquarters

Shipyardwithone(1)detached

building(workersquartersand

vacantworkshop)

One(1)singlestoreyofficecumworkshop

N/A

Utilizeasashipyardwithone(1)detached

building(workshopandwarehouse)

SEALINK SENDIRIAN BERHAD (20471-D)


Landed Properties (continued)

LandIdentification /Postal Address

Lot8133,Block1,LambirLandDistrict(formerlyknownasLot1802,LambirLandDistrict)[2/10thundividedrighttitleshare&interest]/[2½Mile,Kilometre4,RiamRoad,Miri,Sarawak]

Lot323,Block1,KualaBaramLandDistrict(formerlyknownasProvisionalLeaseLot2040,KualaBaramLandDistrict)/[Lot323,KualaBaramIndustrialEstate,98100Miri,Sarawak]

Lot8139,DistrictofLabuan,WilayahPersekutuan(FormerlyknownasCountryLease205316669)/[JalanRancha-RanchaLama,KampungRancha-Rancha,87000Labuan,WilayahPersekutuan,Labuan]

Lot12039,DistrictofLabuan,WilayahPersekutuan(FormerlyknownasCountryLease205316669)/[JalanRancha-RanchaLama,KampungRancha-Rancha,87000Labuan,WilayahPersekutuan,Labuan]


Descriptionof Property

Vacantagriculture

land

Industriallandandbuildings

Vacantindustrial

land

Vacantindustrial

land

Industrialland

andbuilding

ApproximateAge of theBuilding(Years)

N/A

10

N/A

N/A

9

Tenure/Dateof Expiry of

Lease






Areamore or

less(sq m)

23,110

19,750

9,841

31,330

19,647

Net Book Value as at

31.12.2018(RM’000)

77

3,443

570

1,814

2,028

SEALINK SENDIRIAN BERHAD (20471-D)

Usage

N/A

Usedforthree(3)detached

buildingsutilizedasoffice,storage

yard&latheworkshop

N/A

N/A

Two(2)blocksofworkers

quarters

BARAM MOULDING INDUSTRIES SDN BHD (200873-D)

BRISTAL VIEW SDN BHD (253385-T)

ALIRAN SAKSAMA SDN BHD (473205-H)


AnalysisofShareholdingsas at 01 April 2019

Class of Equity Security

Issuedandpaidupcapital : RM250,000,000.00comprisingof500,000,000ordinaryshares

ClassofShares : Ordinaryshares

Votingrights : Onevoteperordinaryshare(onapoll)

Distribution of Shareholdings

No. of No. of Holders % Holdings %

1-99 5 0.16 209 0.00100-1,000 729 23.97 155,991 0.031,001-10,000 1,032 33.94 6,771,400 1.3510,001-100,000 1,053 34.63 38,167,400 7.63100,001-24,999,999* 219 7.20 82,725,001 16.5525,000,000andabove** 3 0.10 372,179,999 74.44

Total 3,041 100.00 500,000,000 100.00

Remark :*lessthan5%ofissuedholdings

:**5%Andaboveofissuedholdings

Directors’ Shareholdings

No. of Shares No. of SharesName Of Directors Direct % Indirect %

1. EricKhooChuanSyn@KhooChuanSyn 30,000 0.01 - 0.002. DatukSebastianTingChiewYew 137,500 0.03 - 0.003. TohKianSing - 0.00 - 0.004. WongChieBin 30,000 0.01 - 0.00 CIMSECNominees(Tempatan)SdnBhd - 0.00 60,000 0.01 CIMBBankForWongChieBin(M73031)5. YongKiamSam 67,382,399 13.48 304,797,600 * 60.96

Total 67,579,899 13.53 304,857,600 60.97

Note :* Deemedinterestbyvirtueofhisfather,YongFohCho’ssubstantialshareholdinginSealinkHoldingsSdnBhdand

alsohisfather’sshareholdingintheCompany

Substantial Shareholders

No. of Shares No. of SharesName Direct % Indirect %

SealinkHoldingsSdn.Bhd.(164959-P) 259,080,800 51.82 - -YongKiamSam 67,382,399 13.48 304,797,600 60.96YongFohChoi 45,716,800 9.14 326,463,199 65.29


Analysis of Shareholdings (continued)

Thirty (30) Largest Shareholders

No. Name Shareholdings %

1. SealinkHoldingsSdn.Bhd. 259,080,800 51.822. YongKiamSam 67,382,399 13.483. YongFohChoi 45,716,800 9.144. AffinHwangNominees(Tempatan)Sdn.Bhd. 6,832,900 1.37 Pledged Securities Account For Kong Sing Nguong (M05)5. TingHuaPing 3,492,500 0.706. YiiSiewSang 3,330,000 0.677. RHBNominees(Tempatan)SdnBhd 2,723,000 0.54 Pledged Securities Account For Lee Tian An8. DataHasratSdnBhd 2,000,000 0.409. LaiChunLian 1,695,500 0.3410. CIMBGroupNominees(Asing)Sdn.Bhd. 1,555,100 0.31 Exempt An For DBS Bank Ltd (SFS)11. AffinHwangNominees(Tempatan)Sdn.Bhd. 1,180,000 0.24 Pledged Securities Account For Teh Poo Seng (M02)12. LeeCheeKeong 1,150,000 0.2313. HeeYuenSang 1,100,000 0.2214. TanCheowHo 1,100,000 0.2215. TengkuABMalekBinTengkuMohamed 1,100,000 0.2216. GanLayHar 1,042,000 0.2117. KenangaNominees(Tempatan)SdnBhd 1,025,100 0.21 Pledged Securities Account For Ting Hua Kuok (ET)18. LeasingCorporationSdnBhd 1,009,000 0.2019. CharlesYii 926,500 0.1920. PublicNominees(Tempatan)SdnBhd 921,600 0.18 Pledged Securities Account For Sin Huan Kwang (E-TWU) 21. RHBCapitalNominees(Tempatan)SdnBhd 900,000 0.18 Pledged Securities Account For Teh Poo Seng (CEB)22. PublicNominees(Tempatan)SdnBhd 880,000 0.18 Pledged Securities Account For Voon Fook Soon (E-PDG/JPN)23. AgrosegarSdnBhd 800,000 0.1624. BahteraOffshore(M)SdnBhd 800,000 0.1625. NgWanWa 750,000 0.1526. PublicInvestNominees(Asing)SdnBhd 705,000 0.14 Exempt An For Phillip Securities Pte Ltd (CLIENTS)27. AMSECNominees(Tempatan)SdnBhd 700,000 0.14 Pledged Securities Account For Kong Sing Nguong28. SiowChunPau 674,000 0.1329. TehPohGuan 651,700 0.1330. WongAnnPang@SeowTunSin 650,000 0.13

Total 411,873,899 82.39 TotalIssuedShareholdings 500,000,000

This page has been intentionally left blank

S INTERNATIONAL BERHAD

(800981-X)

EALINKNo. of Shares Held :

FormofProxy

I/We______________________________________________________NRICNo./CompanyNo._____________________________

of______________________________________________________________________________________________________ being*amember/membersofSEALINK INTERNATIONAL BERHADherebyappoint_______________________________ _______________________________________________________________NRICNo.________________________________

of______________________________________________________________________________________________________ orfailinghim/her,_________________________________________________NRICNo._________________________________

of______________________________________________________________________________________________________ orChairmanofthemeetingasmy/ourproxytovoteforme/usonmy/ourbehalf,attheEleventhAnnualGeneralMeeting(“11thAGM”)oftheCompanytobeheldattheMeetingRoom,1stFloor,AdminBlock,SealinkEngineeringandSlipwaySdnBhd,Lot816,Block1,KualaBaramLandDistrict,98100KualaBaramMiri,Sarawak,onTuesday,21May2019at11:00a.m.andatanyadjournmentthereoffor/against*theresolution(s)tobeproposedthereat.

NO. RESOLUTIONS FOR AGAINST

1. ToapprovethepaymentofDirectors’FeesamountingtoRM315,000.00forthefinancialyearending31December2019.

2. Tore-electDatukSebastianTingChiewYewasDirectoroftheCompany.

3. Tore-electMrEricKhooChuanSyn@KhooChuanSynasDirectoroftheCompany.

4. To re-appointMessrsErnst&Youngas theAuditors of theCompanyuntil theconclusionof thenextAnnualGeneralMeetingand toauthorise theDirectors todeterminetheirremuneration.

5. ContinuationinofficeofMrWongChieBinasIndependentNon-ExecutiveDirector.

6. ContinuationinofficeofMrTohKianSingasIndependentNon-ExecutiveDirector.

7. ProposedAlterationoftheentireexistingMemorandumAndArticlesofAssociationoftheCompanybythereplacementthereofwithanewConstitutionoftheCompany.

(Pleaseindicatewith(X)howyouwishyourvotetobecast.Ifnospecificdirectionastovotingisgiven,theproxywillvoteashethinksfitorabstainfromvotingathisdiscretion). Datedthis______dayofMay,2019.

_______________________________________SignatureofShareholder(s)/CommonSeal

NOTES:1. OnlyDepositorswhosenamesappearintheGeneralMeetingRecordofDepositorsasat15May2019beregardedasMembers

andshallbeentitledtoattend,speakandvoteatthe11thAGM.

2. AMemberentitledtoattend,speakandvoteatthe11thAGMmayappointaproxytoattend,speakandvoteonhisbehalf.AproxyneednotbeamemberoftheCompany.

3. WhereamemberoftheCompanyisanexemptauthorizednomineewhichholdsordinarysharesintheCompanyformultiplebeneficialownersinonesecuritiesaccount(omnibusaccount),thereisnolimittothenumberofproxieswhichtheexemptauthorizednomineemayappointinrespectofeachomnibusaccountitholds.

4. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointororofhisattorneydulyauthorizedinwritingoriftheappointorisacorporation,eitherunderitscommonsealorunderthehandofanofficerorattorneyofthecorporationdulyauthorized.

5. TheinstrumentappointingaproxymustbedepositedattheregisteredofficeoftheCompanyatLot1035,Block4,MCLD,PiasauIndustrialArea,98000Miri,Sarawak,notlessthan48hoursbeforethetimesetforthis11thAGMoranyadjournmentthereof.

Lot1035,Block4,MCLD,PiasauIndustrialArea,98000Miri,Sarawak

TheCompanySecretary

SEALINK INTERNATIONAL BERHAD (800981-X)

1stfoldhere

Thenfoldhere

AFFIXSTAMP

Foldthisflapforsealing

DetailsoftheGroupPLACESOFOPERATIONS/OFFICES

HeadquartersLot 1035, Block 4, MCLD, Piasau Industrial Area, 98000 Miri, SarawakTel : 085-651 778Fax : 085-652 480

Other Places of Operations Lot 816, Block 1, Kuala Baram Land District, 98100 Kuala Baram Miri, Sarawak Tel : 085- 605 767Fax : 085- 605 428

Lot 1339, Jalan Cattleya 1, MCLD, Krokop, 98000 Miri, SarawakTel : 085-605 767Fax : 085-605 428

545 Orchard Road #09-07, Far East Shopping Centre, 238882 SingaporeTel : +65 6737 7911Fax : +65 6737 4889

Lot 20, Manmohan’s Warehouse,Jalan Patau Patau,87000 Wilayah Persekutuan LabuanTel : 087-581 686Fax : 087-582 686

Lot 18234 Ground Floor & First Floor,Jalan Air Putih, Kampung Jaya,24000 Chukai Kemaman,TerengganuTel : 09-850 4012 Fax : 09-850 4013

SINTERNATIONAL BERHAD

(800981-X)

EALINK

Documents

Sealink International Berhad i Annual Report 2018sealink.listedcompany.com/newsroom/SEALINK... · 226309-A Godrimaju 535404-U 100% Seabright Sdn. Bhd. 30204-K 100% Sealink Pacific