NOTES TO THE ACCOUNTS
1. Basis of Preparation
The interim financial report is unaudited and is prepared in accordance with MASB 26 “Interim
Financial Reporting” and Chapter 7 Part VI of the Kuala Lumpur Stock Exchange Listing
Requirements for MESDAQ market, and should be read in conjunction with the Company’s
financial statement for the year ended 30th June, 2002.
The accounting policies and presentation adopted for the Interim financial report are consistent
with those adopted for the annual financial statements for the year ended 30th June, 2002.
2. Qualification of Financial Statement
The audit report of the preceding annual financial statements was not subject to any qualification.
3. Nature and Amount of Unusual Items
There were no unusual items in the quarterly financial statements under review.
4. Nature and Amount of Changes in Estimates
There were no changes in estimates reported in the previous year.
5. Valuation of Property, Plant and Equipment
The company did not revalue any of its property, plant and equipment.
There is no taxation as the Company was granted pioneer status which exempts its income from
taxation for a period of 5 years commencing from 24th October, 2000.
7. Profit on sale of Unquoted Investments and/or Properties
There were no disposal of unquoted investment and properties in the financial periods under
8. Quoted Securities
There were no disposals of Quoted Securities in the financial period under review.
9. Changes in the Composition of the Group
There were no changes in the composition of the Group during the period under review.
10. Status of Corporate Proposals
The Company has issued a prospectus dated 24 December, 2002 for the issue of 22,500,000 new
ordinary shares of RM0.10 each at an issue price of RM0.45 per ordinary share by way of private
placement and public offer payable in full on application in connection with the proposed listing of
the company’s shares on the Kuala Lumpur Stock Exchange MESDAQ Market. The new shares
were fully subscribed on its closing date on 8th January, 2003 and the entire share capital of the
company is expected to be listed on the MESDAQ Market on 27th January, 2003.
11. Issuance and Repayment of Debt and Equity Securities
There were no issuance and repayment of debt and equity securities, share buy-back, share
cancellation, shares held as treasury shares and resale of treasury shares for the current financial
year to date.
12. Company Borrowings and Debt Securities
The borrowing of the company as at 31st December, 2002 represent a hire-purchase loan for the
Company’s motor vehicle.
13. Contingent Liabilities
There was no contingent liability as at 17th January,2003 (the latest practicable date not earlier
than 7 days from date of issue of this quarterly report).
14. Off Balance Sheet Financial Instruments
The Company does not have any financial instrument with off balance sheet risk as at 17 th
January,2003 (the latest practicable date which is not earlier than 7 days from the date of issue of
this quarterly report).
15. Material Litigation
The Company is not engaged in any material litigation either as plaintiff or defendant and the
directors do not have any knowledge of any proceedings pending or threatened against the
Company as at 17th January, 2003.
16. Segmental Information
The Company generates all its revenue from Malaysia and has only one principal activity.
17. Quarterly Analysis
For the quarter ended 31st December, 2002, the Company achieved a revenue of RM3.5million
representing a growth of 54% as compared to RM2.3 million achieved in the previous quarter. As
a result of higher revenue, the profit after tax for this quarter has also surged by 71% to RM1.15
million as compared to the previous quarter of RM0.67 million.
18. Review of Performance
The performance of the Company is closely aligned to the growth of the SMS usage in the
mobile communication industry in Malaysia.
For the 6 months ended 31st December, 2002, the Company generated a revenue of RM5.8
million as compared to RM4.2 million generated for the full financial year ended 30th June, 2002.
The growth was brought about mainly by the successful “tie-up” ( partnership) with the mobile
network operators for the distribution of the Company’s products and services. The first
partnership was clinched in August,2001 and as at todate the Company has already entered into
partnership with all the mobile network operators in Malaysia.
19. Material Event Subsequent to 31st December, 2002
There were no material event between 31st December, 2002 and 17th January, 2003 that have not
been reflected in the financial statement for the 6 months ended 31st December, 2002.
20. Seasonal or Cyclical Factors
The business of the Company is not affected by any significant seasonal or cyclical factors.
21. Current Year’s Prospect
Baring any unforeseen circumstances, the Company believes that it will be able to at least
maintain the current quarter’s performance for the remaining two quarters.
22. Profit Forecast and Profit Guarantee
The Company has not issued any forecast for the current year.
No interim dividend has been declared or paid.
24. Earnings Per Share
The earnings per share is calculated by dividing the Company’s profit after taxation by
67,500,000 number of Ordinary Shares in issue for the 6 months ended 31st December, 2002.