WELLCALL HOLDINGS BERHAD · Leong Hon Chong (Non-Independent Executive Director) Chew Chee Chek...

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THE WORLD IS OUR MARKET WELLCALL HOLDINGS BERHAD (Company No: 707346-W) WELLCALL HOLDINGS BERHAD (707346-W) ANNUAL REPORT 2007 WELLCALL HOLDINGS BERHAD (Company No. 707346-W) Plot 48, Jalan Johan 2/5, Kawasan Perindustrian Pengkalan II Fasa II, 31500 Lahat, Ipoh, Perak Darul Ridzuan Tel: 605 3668805 / 3668806 / 3668807 / 3668808 Fax: 605 3668768 Website: www.wellcall.com.my Email: [email protected] ANNUALREPORT2007

Transcript of WELLCALL HOLDINGS BERHAD · Leong Hon Chong (Non-Independent Executive Director) Chew Chee Chek...

T H E W O R L D I SO U R M A R K E T

WELLCALL HOLDINGS BERHAD(Company No: 707346-W)

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WELLCALL HOLDINGS BERHAD(Company No. 707346-W)

Plot 48, Jalan Johan 2/5, Kawasan Perindustrian Pengkalan IIFasa II, 31500 Lahat, Ipoh, Perak Darul Ridzuan

Tel: 605 3668805 / 3668806 / 3668807 / 3668808 Fax: 605 3668768Website: www.wellcall.com.myEmail: [email protected]

ANNUALREPORT2007

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contents 2 CorporateInformation

3 CorporateStructure

4 FiveYearGroupFinancialReview

6 Chairman’sStatement

9 Directors’Profile

19 StatementonCorporateGovernance

24 StatementonInternalControl

25 AuditCommitteeReport

29 OtherInformation

31 FinancialStatements

68 AnalysisofShareholdings

71 SummaryofLandedPropertiesandBuildings

72 NoticeofAnnualGeneralMeeting

FormofProxy

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BOARD OF DIRECTORS

Datuk Ng Peng Hong @ Ng Peng Hay(Non-Independent Non-Executive Chairman)

Huang Sha(Non-Independent Managing Director)

Leong Hon Chong(Non-Independent Executive Director)

Chew Chee Chek(Non-Independent Executive Director)

Tan Kang Seng(Non-Independent Non-Executive Director)

YB Dato’ Haji Mohtar bin Nong(Non-Independent Non-Executive Director)

Mat Zaid bin Ibrahim(Alternate Director to YB Dato’ Haji Mohtar bin Nong)

Razmi bin Alias(Independent Non-Executive Director)

Yang Chong Yaw, Alan(Independent Non-Executive Director)

Mohd Khasan bin Ahmad(Independent Non-Executive Director)

PRINCIPAL PLACE OF BUSINESS

Plot48,JalanJohan2/5KawasanPerindustrianPengkalanIIFasaII31500LahatIpohPerakDarulRidzuanTel : 05-3668805Fax : 05-3668768

REGISTERED OFFICE

UnitC-6-5,6thFloor,BlockCMeganAvenueIINo.12,JalanYapKwanSeng50450KualaLumpurTel : 03-21611000Fax : 03-21663322

AUDIT COMMITTEE

Razmi bin AliasChairman(Independent Non-Executive Director)

Yang Chong Yaw, AlanMemberofthecommittee(Independent Non-Executive Director)

Chew Chee ChekMemberofthecommittee(Non-Independent Executive Director)

REMUNERATION COMMITTEE

Razmi bin AliasChairman(Independent Non-Executive Director)

Yang Chong Yaw, AlanMemberofthecommittee(Independent Non-Executive Director)

Chew Chee ChekMemberofthecommittee(Non-Independent Executive Director)

NOMINATION COMMITTEE

Datuk Ng Peng Hong @ Ng Peng HayChairman(Non-Independent Non-Executive Chairman)

Razmi bin AliasMemberofthecommittee(Independent Non-Executive Director)

Yang Chong Yaw, AlanMemberofthecommittee(Independent Non-Executive Director)

AUDITORS

ONG & WONG Chartered Accountants UnitC-20-5,20thFloor,BlockCMeganAvenueIINo.12,JalanYapKwanSeng50450KualaLumpurTel : 03-21611000Fax : 03-21669131

REGISTRARS

SYMPHONY SHARE REGISTRARS SDN BHD26thFloor,MenaraMulti-PurposeCapitalSquareNo.8,JalanMunshiAbdullah50100KualaLumpurTel : 03-27212222Fax : 03-27212530

PRINCIPAL BANKERS

MALAYAN BANKING BERHADHSBC BANK MALAYSIA BERHAD

COMPANY SECRETARIES

WongShanMay(LS0008582)ChinWoonLi(MAICSA7008636)

STOCK EXCHANGE LISTING

Second BoardBursa Malaysia Securities BerhadStockName : WellcalStockCode : 7231Sector : IndustrialProducts

Corporate Information

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Corporate Structure

SUBSIDIARY COMPANY

WellcallHose(M)SdnBhd

PRINCIPAL ACTIVITIES

Manufacturingofrubberhoseandrelatedproducts

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Five Year Group Financial Review

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Five Year Group Financial Review (Cont’d)

Financial year ended 30 September 2003 2004 2005 2006N3 2007 RM’000 RM’000 RM’000 RM’000 RM’000 (Restated)

Revenue 33,191 40,155 54,154 67,423 91,392

Earningsbeforeinterest, depreciationandtaxation 8,272 9,255 12,953 12,172 19,068

Interestexpenses 0 (135) (169) (200) (246)

Interestincome 79 128 326 522 604

Depreciation (1,712) (1,106) (1,431) (1,608) (2,796)

Profitbeforetax 6,639 8,142 11,679 12,037 16,630

Taxation (1,332) (1,858) (2,588) (1,155) (1,424)

Profitattributableto equityholders 5,307 6,284 9,091 10,882 15,206

NetAssets 19,126 23,460 32,551 54,428 66,169

NetEPS 8.15 9.65 13.96 17.52 18.10

Netdividendrate(taxexempt)(%) 3.99 5.99 0.00 17.48 19.00

Numberofsharesinissue(‘000) 65,102 65,102 65,102 68,664 83,999

ParValueofOrdinaryShare(RM) 0.50 0.50 0.50 0.50 0.50

Netassetspershare(RM) 29.38 36.04 50.00 79.27 78.77

Note:

1. The figures for financial years ended 30 September 2003, 2004, 2005 and 2006 are prepared based on a proforma consolidated basis on the assumption that the current structure of the Group has been in existence since financial year ended 30 September 2003.

2. Issuance of 17,098,400 ordinary shares pursuant to the public issue was completed on 18 July 2006.

3. During the financial year 2007, the Group change its accounting policy in compliance with Financial Reporting Standards 2 (Share-based Payment). The comparative amount in the financial year ended 30 September 2006 have been reinstated.

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Chairman’s Statement

It is my pleasure to now present, the annual report of the Wellcall Holdings Berhad (“Wellcall” or “Company”) and its subsidiary company (“Group”) for the financial year ended 30 September 2007 on behalf of the Board of Directors.

PERFORMANCE REVIEW

Forthefinancialyearended30September2007,ourGroupachievedanotheryearofstrongearningsgrowth.TheGrouprecordedarevenueofRM91.39million,representinganincreaseofRM23.97millionorapproximately35.6%comparedto RM67.42 million* achieved in the previous financial period ended 30 September 2006 (“FPE 2006”).The increase inrevenuewasattributabletotheincreaseinsalesinallproductrange,whichismainlydrivenbytheincreaseinexportsalestoAustralia/NewZealandandcountriesinEurope,SouthAmerica,AsiaandtheMiddleEast.Theaforesaidexportmarketshaverecordeddoubledigitgrowthinturnoverrangingfrom28%to72%comparedtoFPE2006.

TheGroupreportedaprofitaftertaxationofRM15.21millionforthecurrentquarterended30September2007comparedtoRM10.9million*recordedinthepreviousFPE2006,representinganincreaseofRM4.31millionor39.5%.TheincreaseinPATwashigherinproportiontotheincreaseinturnoverandwasmainlyattributabletoalowerstaffcost(share-basedcompensationarisingfromemployees’shareoptionscheme)amountedtoRM0.279millioncomparedtoRM1.151millionincurredinFPE2006. * Assuming that the acquisition of its wholly-owned subsidiary, namely Wellcall Hose (M) Sdn Bhd (“WHSB”) has been in effect

throughout the financial period of 12 months ended 30 September 2006 on a proforma basis and after the reinstatement of profit for comparative purpose arising from the change in accounting policy by the Group to comply with Financial Reporting Standards 2 (share-based compensation) amounted to RM1.151 million

OPERATIONS REVIEW

The principal activity ofWellcall is investment holding, while the principal activity of our wholly-owned subsidiary ismanufacturingindustrialrubberhoseforcustomerswhoaremainlyinthebusinessofdistributingrubberhosetoOEMmanufacturersandmanufacturers.

WiththecompletionofthenewfactorysituatedadjacenttotheexistingfactoryofourGroupinSeptember2006,weareputtingcontinuousendeavourtoimprovetheutilizationofproductioncapacityviaamoreaggressivemarketingstrategies.Duringtheyear,wehaveparticipatedinthree(3)internationalexhibitions,whichincludeCantonFair2007heldatGuangzhou,ProvinceofChina,Tubetech2007heldatSaoPaulo,BrazilandInternationalPlasticandRubberFairheldatDusseldorf,Germanywiththeviewtosecuremoresalesordersandfurtherdiversifyourcustomerbase.Wehavealsoincreasedourcustomerbaseto134customersfrom97customersinMay2006,representinganincreaseof38%,whichhascontributedpositivelytowardsthegrowthinrevenueforthisfinancialyear.

Wehavealsoexpandedourextrusioncapacityinthesecondhalfoftheyearbyadditionofseven(7)newlinesto16lines,representinganincreaseofapproximately80%inextrusionproductioncapacity.

OurGroupstartedoffbymanufacturingandsellingrubberhoseto3majorapplicationmarketsandwehavesinceexpandedtomorethan6majorapplicationmarkets,whichinclude,theairandwater,weldingandgas,oilandfuel,automobile,shipbuildingandfoodandbeverage.

OurGroupsellstocustomersinmostcontinentsintheworld,coveringatotalof51countries.Forthefinancialyearended30September2007,weexportedapproximately94%ofourrubberhosetoMiddleEast,Europe,USA,Canada,Australia,NewZealand,Asia,SouthAfricaandSouthAmerica.

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Chairman’s Statement (Cont’d)

CORPORATE DEVELOPMENT

On22November2007,theCompanyproposedtoundertakethefollowingcorporateproposals:

(i) Proposedbonusissueofupto44,511,005newordinarysharesofRM0.50eachinWellcall(“WellcallShares”or“Shares”)(“BonusShares”)onthebasisof1BonusShareforevery2existingSharesheldintheCompany(“ProposedBonusIssue”);

(ii) ProposedincreaseintheauthorisedsharecapitalofWellcallfromRM50,000,000comprising100,000,000SharestoRM100,000,000comprising200,000,000Shares(“ProposedIncreaseinAuthorisedShareCapital”);and

(iii) Proposedtransferofthelistingofandquotationfortheentireissuedandpaid-upsharecapitalofWellcallfromtheSecondBoardtotheMainBoardofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”)uponcompletionoftheProposedBonusIssueandProposedIncreaseinAuthorisedShareCapital(“ProposedTransferListing”).

(collectivelyreferredtoasthe“Proposals”).

TheProposedTransferListingisexpectedtoenhancetheGroup’sprestigeandreputationaswellastheconfidenceofourcustomers,suppliers,employeesandbankers.ItisalsoexpectedtofurtherenhanceWellcall’sstandingamongstitsinvestorsandimprovethemarketabilityoftheWellcallShares.TheProposalsareexpectedtobecompletedbythefirstquarterof2008.

MARKET OUTLOOK

OurGroupisaglobalindustrialrubberhosemanufacturerandthelargestindustrialrubberhosemanufacturerinthecountry.Morethan94%ofourGroup’sproductsareexportedto51countriesandourGrouphasconsistentlybeenabletoattainMalaysia’sexportmarketsharesinthehightwentiesintermsofpercentages.Withthenewlyexpandedcapacitycoupledwithdiversifiedmarket,weexpectourGroupcontinuetorideontheglobaloutsourcingtrend,whichstartedin2002.OurGroupwillcontinuetocapitaliseonourGroupreputation,productquality,efficientserviceandestablishednetworktostrengthenourmarketpositionlocallyandabroad.Inaddition,ourGroupwillcontinuetoexplorenewpotentialforeignmarketsviatheparticipationininternationalexhibitionfairsforourproducts.

Baringunforeseencircumstances,ourGroupisexpectedtoperformsatisfactorilyinthecomingfinancialyear.

DIVIDEND

TheBoardofDirectorsisnotrecommendinganyfinaldividendpaymentforthefinancialyearended30September2007.Forthefinancialyearended30September2007,theCompanyhad:

i) On15March2007,paidafirsttaxexemptinterimdividendof3.6senperordinaryshareamountedtoRM3,024,792;

ii) On 28 September 2007, paid a second tax exempt interim dividend of 4.4 sen per ordinary share amounted toRM3,751,309;and

iii) On 18 December 2007, paid a third tax exempt interim dividend of 1.5 sen per ordinary share amounted toRM1,279,308.19.

Thetotaltaxexemptdividendof9.5senperordinarysharedeclaredandpaidforthefinancialyearended30September2007representinganincreaseofapproximately160%comparedtothetaxexemptdividendof3.65senperordinarysharedeclaredandpaidforthefinancialperiodended30September2006.Thetotaldividenddeclaredandpaidrepresentsadistributiontoshareholdersofapproximately53%oftheGroup’snetprofitforthisfinancialyear.

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Chairman’s Statement (Cont’d)

ACKNOWLEDGEMENTS

OnbehalfoftheBoardofDirectors,IwishtoexpressoursincereappreciationtothemanagementandstaffofourGroupfortheircontinueddedication,commitmentandloyaltytoourGroup.

GiventhejointcommitmentoftheBoardofDirectors,managementandstaff,aswellastheco-operationandsupportofcustomersandshareholders,ourGroupispoisedtomeetthenewchallengesintheyearsahead.

Ialsowishtoexpressoursincereappreciationtoourcustomers,shareholders,businessassociates,governmentauthoritiesandbankersfortheircontinuedsupportandco-operation.

DATUK NG PENG HONG @ NG PENG HAYChairman

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Directors’ Profile

DATUK NG PENG HONG @ NG PENG HAY, D.M.S.M., D.S.M., P.J.K.

Age : 55Nationality : MalaysianQualification : MalaysianCertificateofEducationOccupation : CompanyDirectorPosition : Non-IndependentNon-ExecutiveChairmanOther Directorships of Public Companies : BoniaCorporationBerhad Farm’sBestBerhad TaWinHoldingsBerhad KomarkcorpBerhad Dunham-BushHoldingBhd (formerly known as Dunham-Bush (Malaysia) Bhd)The Date He Was First Appointed to the Board : 17April2006

The Details of Any Board Committee to Which He Belongs :NominationCommitteeofWellcall

Securities Holding in the Company :Direct :NilIndirect :9,765,241ordinaryshares

Securities Holding in the Subsidiary :DeemedtohaveinterestsinsharesofthesubsidiarytotheextentWellcallhasaninterest.

Family Relationship With Any Director and / or Major Shareholders of the Company :Nil

Conflict of Interest :None

List of Convictions for Offences Within the Past 10 Years Other Than Traffic Offences :None

Working Experience :HewasappointedtotheBoardofWellcallon17April2006.HewastheStateAssemblymanforTengkeraConstituencyunderBarisanNasionalbetween1982and1986.HethenservedasaSenatorintheMalaysianParliamentfrom1987to1993.Hisfirstinvolvementinsocialactivitieswasuponcompletinghissecondaryeducation.HehasbeenappointedastheInvestmentCo-ordinatoroftheMalaccaStateDevelopmentCorporationtohandledirectinvestmentintheStateofMelakasince1988.Together with his team of officials and his excellent public relations; he has helped in attracting numerousTaiwanese,SingaporeanandChineseinvestorsintotheStateofMelake.Inrecognitionofhiseffortsanddedication,hewasconferredtheDarjahMuliaSeriMelakabyhisExcellency,theGovernorofMelakain1992.On17July1999,theTaiwaneseGovernmentawardedhimtheEconomicMedal.HewastheChairmanofMCA,7th-BranchMelakasince1982.HewasalsoappointedasViceChairmanofMelakaStateMalaysiaCrimePreventionFoundation(MCPF)since1997andasExcoMemberofNationalMalaysiaCrimePreventionFoundation.HeisalsotheChairmanofMalaccaState’sInspectorateofNationalServiceTrainingCouncil.

The Number of Board Meetings Attended in the Financial Year :4outof4

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Directors’ Profile (cont’d)

HUANG SHA, PMP

Age : 52Nationality : Taiwanese(MalaysianPermanentResident)Qualification : SecondaryEducation,TaiwanOccupation : CompanyDirectorPosition : Non-IndependentManagingDirectorOther Directorships of Public Companies : NilThe Date He Was First Appointed to the Board : 17April2006

The Details of Any Board Committee to Which He Belongs :Nil

Securities Holding in the Company :Direct :1,000,000ordinarysharesIndirect :27,372,679ordinaryshares

Securities Holding in the Subsidiary :DeemedtohaveinterestsinsharesofthesubsidiarytotheextentWellcallhasaninterest.

Family Relationship With Any Director and / or Major Shareholders of the Company :Nil

Conflict of Interest :None

List of Convictions for Offences Within the Past 10 Years Other Than Traffic Offences :None

Working Experience :HewasappointedtotheBoardofWellcallon17April2006.HuangShabeganhiscareerin1972uponcompletinghissecondaryeducationandworkedforvariousmanufacturersofrubberproductsinTaiwanandIndonesiaandprogressedtothepositionofproductionmanager.From1989tothemid-1990s,hejoinedJetfloRobin(M)SdnBhd,amanufacturerofindustrialrubberhose,asaGeneralManager.Subsequently,heestablishedoursubsidiary,WHSB,togetherwith2otherpartners.Withhisin-depthknowledge,skillsandexpertiseinallaspectsofthemanufacturingofrubberhoseformorethan30years,hehasformulatedoursubsidiary’sstrategicplanstobeinlinewiththechangesinthetrendsofvariousindustriesandcustomersneeds.HehasalsoledWHSBtonewheightsbydiversifyingitscustomer’sbaseandexpandingitsexistingproductrangeintheoilandgassectoraswellasdeveloping3newrubberhose,namelyfoodandbeveragehose,chemicalhoseandsteamhose.Asrecognitionforhisachievementintheindustry,hewasawardedtheWinneroftheGlobalTopEnterpriseGoldenSolidAwardsbytheChineseEnterpriseDevelopmentAssociationofTaiwanon2October2004.HealsoheadsourR&Ddivisionwhereheplaysapivotalroleintheproductformulationanddevelopment.HeisalsotheManagingDirectorofoursubsidiary,WHSB,whereheiscurrentlyresponsibleforthestrategicplanninganddevelopmentofourGroup.

The Number of Board Meetings Attended in the Financial Year :4outof4

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LEONG HON CHONG

Age : 62Nationality : MalaysianQualification : BachelorofCommerce(Accountancy), UniversityofOtagoinNewZealandOccupation : CompanyDirectorPosition : Non-IndependentExecutiveDirectorOther Directorships of Public Companies : NilThe Date He Was First Appointed to the Board : 17April2006

The Details of Any Board Committee to Which He Belongs :Nil

Securities Holding in the Company :Direct :500,000ordinarysharesIndirect :27,342,679ordinaryshares

Securities Holding in the Subsidiary :DeemedtohaveinterestsinsharesofthesubsidiarytotheextentWellcallhasaninterest.

Family Relationship With Any Director and / or Major Shareholders of the Company :Nil

Conflict of Interest :None

List of Convictions for Offences Within the Past 10 Years Other Than Traffic Offences :None

Working Experience :HewasappointedtotheBoardofWellcallon17April2006.HegraduatedfromtheUniversityofOtagoinNewZealandwithaBachelorofCommerce(Accountancy)in1970.HestartedhiscareerasanauditorwithSwenry&Co.,apublicaccountingfirminNewZealand.After2years,hejoinedMalaysiaVetsingSdnBhdasanAccountsSupervisortill1975.From1975to1985,hefurtheredhiscareerwithCarterSemiconductorSdnBhdasaControllerforthecompany’sadministration,financeandmarketingdivisions.In1985hesetupaproprietorshipprovidingmanagementconsultancyservicestillmid-1990s.Subsequently,heestablishedoursubsidiary,WHSB,togetherwithHuangShaandLinKunPaoandwasappointedasanExecutiveDirectorofoursubsidiarywhereheiscurrentlyresponsiblefortheadministrationandmarketingfunctionsofourGroup.

The Number of Board Meetings Attended in the Financial Year :3outof4

Directors’ Profile (cont’d)

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CHEW CHEE CHEK

Age : 37Nationality : MalaysianQualification : DiplomaInCommerce(FinancialAccounting),Kolej TunkuAbdulRahman,Malaysia FellowoftheAssociationofCharteredCertified Accountants,UKOccupation : CompanyDirectorPosition : Non-IndependentExecutiveDirectorOther Directorships of Public Companies : KomarkcorpBerhadThe Date He Was First Appointed to the Board : 17April2006

The Details of Any Board Committee to Which He Belongs :AuditCommitteeandRemunerationCommitteeofWellcall

Securities Holding in the Company :Direct :NilIndirect :27,342,679ordinaryshares

Securities Holding in the Subsidiary :DeemedtohaveinterestsinsharesofthesubsidiarytotheextentWellcallhasaninterest.

Family Relationship With Any Director and / or Major Shareholders of the Company :Nil

Conflict of Interest :None

List of Convictions for Offences Within the Past 10 Years Other Than Traffic Offences :NoneWorking Experience :HewasappointedtotheBoardofWellcallon17April2006.HegraduatedwithaDiplomainCommerce(FinancialAccounting)in1993fromTunkuAbdulRahmanCollegeandisafellowoftheAssociationofCharteredCertifiedAccountants.HestartedhiscareerasanAuditAssistantinBDOBinder,KualaLumpur,apublicaccountingfirm,from1994to1995.In1995,hejoinedPricewaterhouseCoopers(formerlyknownasCoopers&Lybrand)asAuditSemiSeniorandsubsequentlypromotedtoAuditSenior.In1996,hejoinedAmanahMerchantBankBerhadasaCorporateFinanceExecutivewhereheacquiredextensiveexperienceincorporaterestructuringexerciseinvolvinginitialpublicoffer,mergerandacquisition,reversetakeover,backdoorlisting,debtrestructuring,rightsissue,privateplacementandbonusissue.Subsequently,hewaspromotedtothepositionofCorporateFinanceAssistantManager.In2000,hejoinedKomarkcorpBerhadasaGroupFinancialControllerandin2003,hewasappointedasanIndependentNon-ExecutiveDirectorofKomarkcorpBerhad.Duringthesametime,from2000to2004,healsoventuredintomanagementconsultancyviaWCLConsultingSdnBhd(“WCL”),wherehewasappointedasanExecutiveDirectorandlaterbecameaNon-ExecutiveDirectorofthecompany.HeresignedastheDirectorofWCLinAugust2006.Healsositsontheboardofdirectorsofaprivatelimitedcompany.

The Number of Board Meetings Attended in the Financial Year :4outof4

Directors’ Profile (cont’d)

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TAN KANG SENG

Age : 39Nationality : MalaysianQualification : MalaysianCertificateofEducationOccupation : CompanyDirectorPosition : Non-IndependentNon-ExecutiveDirectorOther Directorships of Public Companies : NilThe Date He Was First Appointed to the Board : 17April2006

The Details of Any Board Committee to Which He Belongs :Nil

Securities Holding in the Company :Direct :300,000ordinarysharesIndirect :9,765,241ordinaryshares

Securities Holding in the Subsidiary :DeemedtohaveinterestsinsharesofthesubsidiarytotheextentWellcallhasaninterest.

Family Relationship With Any Director and / or Major Shareholders of the Company :Nil

Conflict of Interest :None

List of Convictions for Offences Within the Past 10 Years Other Than Traffic Offences :None

Working Experience :HewasappointedtotheBoardofWellcallon17April2006.Uponcompletionofhissecondaryeducationin1984,hewasinvolvedinhisfamilybusiness,PohHuatChan,whichismainlyawholesalerofreligion-relatedprayerofferingproducts,tilltodate.In2000,hebecamethepersonalassistanttoDatukNgPengHong@NgPengHayandsubsequentlyheresignedinSeptember2006tofocusinhisbusiness.Throughouthiscareerspanningmorethan18years,TanKangSenghasgainedvastexperienceintheretailandcommercesector.HeisalsoaNon-ExecutiveDirectorofoursubsidiary,WHSB.

The Number of Board Meetings Attended in the Financial Year :3outof4

Directors’ Profile (cont’d)

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YB DATO’ HAJI MOHTAR BIN NONG, DPMT, ASM. PJC, PJK, BLB

Age : 53Nationality : MalaysianQualification : BachelorofEconomics(Hons),UniversitiKebangsaan MalaysiaMasterinBusinessAdministration, UniversityofDubuque,Iowa,USAOccupation : CompanyDirectorPosition : Non-IndependentNon-ExecutiveDirectorOther Directorships of Public Companies : TDMBerhad PermodalanTerengganuBerhad PTBUnitTrustBerhad AstinoBerhadThe Date He Was First Appointed to the Board : 17April2006

The Details of Any Board Committee to Which He Belongs :Nil

Securities Holding in the Company :Nil

Securities Holding in the Subsidiary :Nil

Family Relationship With Any Director and / or Major Shareholders of the Company :Nil

Conflict of Interest :None

List of Convictions for Offences Within the Past 10 Years Other Than Traffic Offences :None

Working Experience :HewasappointedtotheBoardofWellcallon17April2006.HeobtainedhisMasterinBusinessAdministrationfromUniversityofDubuque,Iowa,USAin1994andaBachelorofEconomics(Hons)fromUniversitiKebangsaanMalaysiain1978.HeservedinvariouspositionswithintheTerengganuStatefrom1978until2004includingGeneralManagerofYayasanPembangunanUsahawanTerengganu, President of Majlis Perbandaran KualaTerengganu and Deputy State Financial Officer prior toassuminghiscurrentpositionasTerengganuStateFinancialOfficerin2004till2006.HewasappointedastheTerengganuStateSecretaryinJanuary2007.Heisalsocurrentlyadirectorofvariousprivatecompanies.

The Number of Board Meetings Attended in the Financial Year :3outof4

Directors’ Profile (cont’d)

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MAT ZAID BIN IBRAHIM, PJC

Age : 44Nationality : MalaysianQualification : DiplomainValuation, UniversityofTechnology,Malaysia BachelorofSurveyinginPropertyManagement(Hon), UniversityofTechnology,MalaysiaOccupation : CompanyDirectorPosition : Non-IndependentNon-ExecutiveDirector (AlternateDirectortoYBDato’HajiMohtarbinNong)Other Directorships of Public Companies : NilThe Date He Was First Appointed to the Board : 17April2006

The Details of Any Board Committee to Which He Belongs :Nil

Securities Holding in the Company :Nil

Securities Holding in the Subsidiary :Nil

Family Relationship With Any Director and / or Major Shareholders of the Company :Nil

Conflict of Interest :None

List of Convictions for Offences Within the Past 10 Years Other Than Traffic Offences :None

Working Experience :HewasappointedtotheBoardofWellcallon17April2006.HegraduatedfromtheUniversityofTechnology,MalaysiainBachelorofSurveyinginPropertyManagementwithHonoursandaDiplomainValuationin1986and1982respectively.HestartedhiscareerwithYayasanIslamTerengganu(“YIT”)in1986asanAssistantDirector(Development&Investment)whereheisin-chargeofYIT’sinvestmentandwaspromotedasPrincipalAssistantDirector(Development&Investment)in2006.Healsositsontheboardofdirectorsofotherprivatecompanies.

The Number of Board Meetings Attended in the Financial Year :4outof4

Directors’ Profile (cont’d)

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RAZMI BIN ALIAS

Age : 50Nationality : MalaysianQualification : DiplomainBusinessStudies, UniversitiTeknologiMara BachelorinBusinessAdministration, WesternMichiganUniversity,Michigan,USA MastersinBusinessAdministration, CentralMichiganUniversity,Michigan,USAOccupation : CompanyDirectorPosition : IndependentNon-ExecutiveDirectorOther Directorships of Public Companies : Can-OneBerhadThe Date He Was First Appointed to the Board : 17April2006

The Details of Any Board Committee to Which He Belongs :AuditCommittee,NominationCommitteeandRemunerationCommitteeofWellcall

Securities Holding in the Company :Nil

Securities Holding in the Subsidiary :Nil

Family Relationship With Any Director and / or Major Shareholders of the Company :Nil

Conflict of Interest :None

List of Convictions for Offences Within the Past 10 Years Other Than Traffic Offences :None

Working Experience :HewasappointedtotheBoardofWellcallon17April2006.HegraduatedfromUniversitiTeknologiMarain1977withaDiploma inBusinessStudiesbeforeobtainingaBachelor inBusinessAdministrationfromWesternMichiganUniversity,Michigan,USAin1981andaMastersinBusinessAdministrationfromtheCentralMichiganUniversity,Michigan,USAin1982.Heworkedwithalocalfinancialinstitutionin1998andsince1999tillpresent,heholdsdirectorshipsinIskaTenagaSdnBhdandotherprivatecompanies.

The Number of Board Meetings Attended in the Financial Year :4outof4

Directors’ Profile (cont’d)

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YANG CHONG YAW, ALAN

Age : 38Nationality : MalaysianQualification : BachelorofEconomics(AccountingandFinance), MacquarieUniversity,Sydney,Australia MasterinBusinessAdministration, MacquarieGraduateSchoolofManagement, Sydney,Australia MemberoftheAustralianSociety ofCertifiedPractisingAccountantsOccupation : CompanyDirectorPosition : IndependentNon-ExecutiveDirectorOther Directorships of Public Companies : NilThe Date He Was First Appointed to the Board : 17April2006

The Details of Any Board Committee to Which He Belongs :Nil

Securities Holding in the Company :Nil

Securities Holding in the Subsidiary :Nil

Family Relationship With Any Director and / or Major Shareholders of the Company :Nil

Conflict of Interest :None

List of Convictions for Offences Within the Past 10 Years Other Than Traffic Offences :None

Working Experience :He was appointed to the Board ofWellcall on 17 April 2006. He obtained his Master in Business Administration fromMacquarieGraduateSchoolofManagement,Sydney,Australiain1999andaBachelorofEconomics(AccountingandFinance)fromMacquarieUniversity,Sydney,Australiain1992.HeisalsoamemberoftheAustralianSocietyofCertifiedPractisingAccountants.MrYanghasmorethan15yearsofexperienceincorporatefinanceandaccounting.HeispresentlytheChiefOperatingOfficerofWBResearchSdnBhd,acompanythatmarketsfinancialanalyticsproducts.

The Number of Board Meetings Attended in the Financial Year :4outof4

Directors’ Profile (cont’d)

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

MOHD KHASAN BIN AHMAD

Age : 45Nationality : MalaysianQualification : DiplomainAccountancy,UniversityTeknologiMara, Malaysia DegreeinAccountancy,UniversityTeknologiMara MemberofMalaysianInstituteofAccountantsOccupation : CompanyDirectorPosition : IndependentNon-ExecutiveDirectorOther Directorships of Public Companies : Farm’sBestBerhad TaWinHoldingsBerhad CrestBuilderHoldingsBerhad MOLAccessPortalBerhad RalcoCorporationBerhadThe Date He Was First Appointed to the Board : 17April2006

The Details of Any Board Committee to Which He Belongs :Nil

Securities Holding in the Company :Nil

Securities Holding in the Subsidiary :Nil

Family Relationship With Any Director and / or Major Shareholders of the Company :Nil

Conflict of Interest :None

List of Convictions for Offences Within the Past 10 Years Other Than Traffic Offences :None

Working Experience :HewasappointedtotheBoardofWellcallon17April2006.HeobtainedadiplomainAccountancyandlatergraduatedwithadegreeinAccountancyfromUniversityTeknologiMarain1985.HeisalsoamemberoftheMalaysianInstituteofAccountants.HeservedBankNegaraMalaysiaforaperiodofabout7years,thelast2yearsofwhichhewassecondedtotheCapitalIssuesCommitteeasitsPrincipalAssistantSecretary.Subsequently,hejoinedtheSecuritiesCommissionforaperiodofabout6yearsandhislastcapacitywasanAssistantManagerinitsIssuesandInvestmentDivision.Duringthetenureofhisaboveappointments,hewasinvolvedinvariouscorporateexercisesrangingfrominitialpublicofferings,mergersandacquisitions,reversetakeovers,issuanceofbondsandothercapitalraisingexercises.Hejoinedtheprivatesectorin1997andheldvariousseniormanagementpositions.

The Number of Board Meetings Attended in the Financial Year :4outof4

Directors’ Profile (cont’d)

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Statement on Corporate Governance

TheBoardofDirectors(“Board”)oftheCompanyispleasedtoreportthatforthefinancialyearunderreview,theCompanyhascontinuedtoapplygoodgovernancepracticesinmanaginganddirectingthebusinessaffairsoftheGroup,byadoptingthesubstanceandspiritoftheprinciplesadvocatedbytheMalaysianCodeonCorporateGovernance(“Code”)whereverpossible.

InthisStatement,theBoardhasconsideredthemannerinwhichtheprinciplesoftheCodehavebeenapplied,theextentofcompliancewiththeBestPracticesandthealternativesfordeparturefromsuchbestpractices.

BOARD OF DIRECTORS

Board Composition and Balance

TheGroupiscontrolledandledbyadynamicBoardwhichisprimarilyentrustedwiththeresponsibilityofchartingthedirectionoftheGroup.Inaddition,theBoardoverseestheconductoftheGroupbusinessesandestablishedandmaintainedanadequatesystemofinternalcontrols.Duetolimitationsinherenttoanysystemofinternalcontrols,theBoardfocusedprimarilyonthemitigationofanyforeseeableorpotentialrisksfacingtheGroup.

Inthemanagementandday-to-dayoperationsoftheGroup,theBoard,throughtheExecutiveDirectors,isfullyassistedbytheManagement.TheBoardoutlinesthepoliciesandobjectivesoftheGroup,whicharecarriedoutbytheManagementthroughthesupervisionoftheExecutiveDirectors.

TheBoardmembersconsistofone(1)Non-IndependentNon-ExecutiveChairman,one(1)Non-IndependentManagingDirector,two(2)Non-IndependentExecutiveDirectors,two(2)Non-IndependentNon-ExecutiveDirectorsandthree(3)IndependentNon-ExecutiveDirectors.

TheprofilesofindividualDirectorsaresetoutonpages9to18oftheAnnualReport.

ThecompositionoftheBoardnotonlyreflectsthebroadrangeofexperience,skillsandknowledgerequiredtosuccessfullydirectandsupervisetheGroupbusinessactivities,butalsotheimportanceof independenceindecision-makingattheBoardlevel.

ThereisalsobalanceintheBoardbecauseofthepresenceofIndependentNon-ExecutiveDirectorswiththenecessarycalibertocarrysufficientweightintheBoard’sdecisionmakingprocess.AlltheNon-ExecutiveDirectorsareindependentofthemanagementandfreefromanybusinessorotherrelationshipthatcouldmateriallyinterferewiththeexerciseoftheirindependentjudgement.TheyhavethecapabilitytoensurethatthestrategiesproposedbytheManagementarefullydeliberatedandexaminedinthelong-terminterestoftheGroup,aswellastheshareholders,employees,customers,suppliersandthemanycommunitiesinwhichtheGroupconductsitsbusinesses.

Indischargingitsduties,theBoardmetatotaloffour(4)timesduringthefinancialyearended30September2007.TherecordofattendanceatthemeetingsoftheBoardofDirectorsforthefinancialyearended30September2007isasfollows:-

No. of Board Directors Meetings Attended

DatukNgPengHong@NgPengHay 4/4HuangSha 4/4LeongHonChong 3/4ChewCheeChek 4/4TanKanSeng 3/4YBDato’HjMohtarBinNong 3/4MatZaidbinIbrahim(AlternateDirectortoYBDato’HjMohtarBinNong) 4/4RazmiBinAlias 4/4MohdKhasanBinAhmad 4/4YangChongYaw,Alan 4/4

20WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

Statement on Corporate Governance (cont’d)

Board Responsibilities

TheBoard isprimarily responsible for theGroup’soverallcorporategovernance,strategicplans,businessperformance,successionplanning,riskmanagement,aswellasreviewingtheadequacyandintegrityofitsinternalcontrolandmanagementinformationsystems.

TheBoardmeetsregularlytoreviewtheGroup’scorporatestrategies,businessoperationsandfinancialperformance.

Directors’ Training

TheGroupacknowledgesthefactthatcontinuouseducationisvitalfortheBoardmemberstogaininsightintothestateofeconomy, technologicaladvances inourcorebusiness, latest regulatorydevelopmentsandmanagementstrategies.Therefore,theDirectorsareencouragedtoevaluatetheirowntrainingneedsonacontinuousprocessandtodeterminetherelevantprogrammes,seminarsandbriefingsthatwouldenhancetheirknowledgetoenabletheDirectorstodischargetheirresponsibilitiesmoreeffectively.

Statement on Continuing Education Programme

Forthefinancialyearended30September2007,theBoardofDirectors,exceptMrLeongHonChongandTanKangSengwhowasonmedicalleaveandoverseasbusinesstriprespectively,hadon17August2007attendedatalkorganizedbytheexternalauditors,namelyOng&Wong,CharteredAccountantsonthechangesmadetotheFinancialReportingStandards2004.

Appointment and Re-election of Directors

InaccordancewiththeCompany’sArticlesofAssociation,theBoardcanappointanypersontobeaDirectorasandwhenitisdeemednecessary.AnypersonsoappointedshallholdofficeuntilthenextAnnualGeneralMeeting(“AGM”)andshallthenbeeligibleforre-election.AtthefirstAGM,alltheDirectorsshallretirefromoffice,andattheAGMineverysubsequentyearone-thirdoftheDirectorsshallretirefromofficeandeligibleforre-election.AnelectionofDirectorstakesplaceeveryyearandalltheDirectorsshallretirefromofficeonceatleastineachthree(3)yearsbutshallbeeligibleforre-election.

Information and External Advice

TheBoardisprovidedwithcomprehensiveboardpapersonatimelybasispriortoboardmeetings.ThisistoensureandtoenabletheDirectorstodischargetheirdutiesandresponsibilitiescompetentlyandinawell-informedmanner.AllmembersoftheBoardhaveaccesstotheadviceandservicesoftheCompanySecretary.TheDirectorsmeet,reviewandapproveallcorporateannouncements,includingtheannouncementofthequarterlyfinancialresults,priortoreleasingthemtoBursaSecurities.

Directorsarealsoempoweredtoseeksuchexternalindependentprofessionaladviceastheymayrequire,attheexpenseoftheGroup,toenablethemtomakewell-informeddecisions.

Directors’ Remuneration

Directors’remunerationisdecidedinlinewiththeobjectiverecommendedbytheCodetodeterminetheremunerationforDirectorssoastoattractandretainDirectorsofthecaliberneededtoruntheCompanysuccessfully.Ingeneral,thecomponentpartsofremunerationarestructuredsoastolinkrewardstoperformance,inthecaseofExecutiveDirectors.InthecaseofNon-ExecutiveDirectors,thelevelofremunerationreflectstheexperienceandresponsibilitiesundertakenbytheparticularnon-executiveconcerned.DirectorsdonotparticipateindecisionsregardingtheirownremunerationpackagesandDirectorsfeesmustbeapprovedbyshareholdersattheAGM.

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ThedetailsoftheremunerationoftheDirectorsoftheCompanyforthefinancialyearunderreviewareasfollows:-

Salaries & Other Fees Emoluments Benefit in Kind Category (RM’000) (RM’000) (RM’000)

ExecutiveDirector – 1,784 47Non-ExecutiveDirector 240 – –

ThenumbersofDirectorsoftheCompanywhosetotalremunerationduringthefinancialyearunderreviewthatfallwithinthefollowingbandsareasfollows:-

Executive Non-Executive Range of Remuneration Director Director

BelowRM50,000 – 4RM50,001–RM100,000 – 2RM150,001–RM200,000 1 –RM400,001–RM450,000 1 –RM1,200,001–RM1,250,000 1 –

TheCompanyhasoptednottodiscloseeachDirector’sremunerationastheBoardconsiderstheinformationtobesensitiveandproprietary.

Board Committees

Inordertoensuretheeffectivedischargeofitsfiduciaryduties,theBoardhasestablishedvariousBoardCommitteestoassisttheBoardintherunningoftheGroup.ThisistoallowthemembersoftheBoardCommitteestodeliberateandexamineissueswithintheirtermsofreferenceingreaterdetailandsubsequentlyrecommendandreporttotheBoard.Thefunctionsandtermsofreferenceofthecommittees,aswellastheauthoritydelegatedbytheBoardtothesecommittees,havebeenclearlydefinedandapprovedbytheBoard.AllBoardCommitteesdonothaveexecutivepowersbutonlythepowertomakerecommendationstotheBoard.

TheBoardCommitteesforthefinancialyearunderreviewareasfollows:

(a) Audit Committee

TheAuditCommitteeisresponsiblefortherecommendationtoourBoardregardingtheselectionoftheexternalauditors,reviewingtheresultsandscopeoftheauditandotherservicesprovidedbytheGroup’sexternalauditorsandreviewsandevaluatestheGroup’sinternalauditandcontrolfunctions.TheAuditCommitteeisalsoresponsiblefortheassessmentoffinancialriskandmattersrelatingtorelatedpartytransactionsandconflictofinterests.TheAuditCommitteemayobtainadvicefromindependentpartiesandotherprofessionalsintheperformanceofitsduties.ThecurrentmembersofourAuditCommitteeareasfollows:

Name Designation Directorship

RazmibinAlias Chairman IndependentNon-ExecutiveDirectorYangChongYaw,Alan Member IndependentNon-ExecutiveDirectorChewCheeChek* Member Non-IndependentExecutiveDirector

Note: * In compliance with the revised Code of Corporate Governance which took effect on 1 October 2007, Chew Chee Chek resigned on 22 November 2007 and Tan Kang Seng has been appointed as the new Audit Committee member on the even date

TheTermsofReferenceoftheCommitteeareasstatedonpages25to28ofthisAnnualReport.AsummaryoftheactivitiesoftheAuditCommitteeduringtheyearissetoutintheAuditCommitteeReportonpage28.

TheCommitteemetatotaloffour(4)timesduringthefinancialyearended30September2007.

Statement on Corporate Governance (cont’d)

22WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

(b) Remuneration Committee

The Remuneration Committee was appointed by our Board and consists of 3 members, a majority of whom areIndependentNon-ExecutiveDirectors.TheChairmanisanIndependentNon-ExecutiveDirector.TheRemunerationCommitteeisprimarilychargedwiththeresponsibilityofrecommendingtoourBoardthepolicyandframeworkforourDirectors’remunerationincludingtheremunerationandtermsofserviceofourExecutiveDirectorsinallitsforms,drawingfromoutsideadvice,ifnecessary.

ThedeterminationofremunerationofourExecutiveandNon-ExecutiveDirectorsshallbeamattertobedeterminedbyourBoardasawholeaftertakingintoconsiderationoftheRemunerationCommittee’srecommendations.ThecurrentmembersofourRemunerationCommitteearesetforthbelow:

Name Designation Directorship

RazmibinAlias Chairman IndependentNon-ExecutiveDirectorYangChongYaw,Alan Member IndependentNon-ExecutiveDirectorChewCheeChek Member Non-IndependentExecutiveDirector

(c) Nomination Committee

The Nomination Committee was appointed by our Board and consists of 3 members, a majority of whom areIndependentNon-ExecutiveDirectors.TheNominationCommitteeisprimarilyresponsibleforproposingnewnomineesforourBoardaswellastheDirectorstofilltheseatsonboardcommittees,andassessingtheDirectorsonanongoingbasis.

In particular, the Board through this Committee would review on an annual basis the required mix of skills andexperienceandothercorequalities,includingcorecompetencies,whichtheNon-ExecutiveDirectorsshouldbringtotheBoard.ThecurrentmembersoftheNominationCommitteearesetforthbelow:

Name Designation Directorship

DatukNg Chairman Non-IndependentNon-ExecutiveChairmanRazmibinAlias Member IndependentNon-ExecutiveDirectorYangChongYaw,Alan Member IndependentNon-ExecutiveDirector

INVESTOR RELATIONS AND SHAREHOLDER COMMUNICATION

The Board clearly recognises the importance of transparency and accountability to all its stakeholders, particularly itsshareholdersandinvestorsasitensuresthatmarketcredibilityandinvestors’confidencearemaintained.Throughextensivedisclosuresofappropriateandrelevantinformation,usingvariouschannelsofcommunicationonatimelybasis,theGroupaimstoeffectivelyprovideshareholdersandinvestorswithinformationtofulfilltransparencyandaccountabilityobjectives.Atthisjuncture,thechannelofcommunicationtoshareholders,stakeholdersandgeneralpublicfortheoverallperformanceandoperationsoftheGroup’sbusinessactivitiesarepressreleases,publicannouncementsonquarterlybasis,annualreportanddisclosurestotheBursaSecurities.Meetingswithinstitutionalinvestors,fundmanagers,analysts,researchhousesandmembersofthemediafromtimetotimeprovideanadditionalavenuefortheBoardandmanagementtoconveyinformationaboutGroupperformance,strategyandothermattersaffectingshareholders’interests.

ANNUAL GENERAL MEETING

TheupcomingAnnual General Meeting represents theprincipal forumfordialogueand interactionwith shareholders.Shareholdersareaccordedboththeopportunityandtimetoraisequestionsontheagendaitemsofthegeneralmeeting.Thenoticeofmeetingandtheannualreportaresentouttoshareholdersatleast21daysbeforethedateofthemeetinginaccordancewiththeCompany’sArticlesofAssociation.

Statement on Corporate Governance (cont’d)

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ACCOUNTABILITY AND AUDIT

Financial Reporting

TheBoardaimstopresentabalanced,insightfulandtimelyassessmentoftheGroup’sfinancialpositionandprospectsbyensuringqualityfinancialreportingthroughtheannualauditedfinancialstatementsandquarterlyfinancialresultstoitsstakeholders,inparticular,shareholders,investorsandtheregulatoryauthorities.TheAuditCommitteeassiststheBoardinscrutinisinginformationfordisclosuretoensurethequalityoffinancialreportingandadequacyofsuchinformation,priortosubmissiontotheBoardforitsapproval.AsrequiredbytheCompaniesAct,1965(“Act”),theDirectorsareresponsibleforthepreparationoffinancialstatementsinaccordancewithapplicableapprovedaccountingstandardsandtogiveatrueandfairviewofthestateofaffairsoftheGroupandCompanyattheendofeachfinancialyearandoftheresultsandcashflowsoftheGroupandCompanyforthefinancialyear.

Inpreparingthefinancialstatements,theDirectorshave:• adoptedappropriateaccountingpoliciesandappliedthemconsistently;• madejudgementsandestimatesthatareprudentandreasonable;• ensuredthatapplicableaccountingstandardshavebeenfollowed;and• preparedthefinancialstatementsonagoingconcernbasisastheDirectorshaveareasonableexpectation,having

madeenquiries,thattheGroupandCompanyhaveadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.

TheDirectors have responsibility for ensuring that theCompanykeepsproperaccounting records which disclose withreasonableaccuracyatanytime,thefinancialpositionoftheGroupandCompanyandtoenablethemtoensurethatthefinancialstatementscomplywiththeActandapplicableapprovedaccountingstandards. Inaddition,theDirectorsarealsoresponsiblefortakingreasonablestepstosafeguardtheassetsfortheGroupandCompanyandtopreventanddetectfraudaswellasotherirregularities.

Internal Control

TheBoardacknowledgesitsoverallresponsibilityformaintainingasoundsystemofinternalcontrolsthatprovidesreasonableassessmentofeffectiveandefficientoperations,internalfinancialcontrolsandcompliancewithlawsandregulationsaswellaswithinternalproceduresandguidelines.TheeffectivenessofthesystemsofinternalcontrolsoftheGroupisreviewedperiodicallybytheAuditCommittee.FurtherdetailsoftheGroup’ssystemofinternalcontrolsaresetoutintheStatementonInternalControlsectionofthisAnnualReport.

Relationship with Auditors

TheBoardmaintainsatransparentandprofessionalrelationshipwiththeexternalauditors.TheAuditCommitteemeetswiththeexternalauditorsatleastonceayeartodiscusstheirauditplan,auditfindingsandthefinancialstatements.TheAuditCommitteealsomeetstheexternalauditorswithoutthepresenceoftheExecutiveDirectorsandthemanagementwheneverdeemednecessary.Fromtimetotime,theauditorshighlighttotheAuditCommitteeandtheBoardonmattersthatrequiretheBoard’sattention.TheroleoftheAuditCommitteeinrelationtoboththeinternalandexternalauditorsisdescribedintheAuditCommitteeReportofthisAnnualReport.

CORPORATE SOCIAL RESPONSIBILITY

TheCompanyhasinvolvedinvariousactivitiesaspartofitsCorporateSocialResponsibility(CSR)efforts:-

(a) Occupational Safety and Health

TheCompanyiscommittedtomaintainhighsafetyandhealthstandardsatworkplace.Acommitteehasbeensetuptomonitorthecomplianceofthesafetyandhealthstandards.Aseriesofin-houseprogrammesonsafetyandhealthareregularlyconductedwiththeassistanceofexternalexpertsandcommitteemembers.Thisincludestrainingonhandlingchemical,flammablematerialsandmachineriesinworkplace.

(b) Contribution to charitable causes

TheCompanyhasbeencontributingregularlytoschoolswithanobjectivetoprovidethelessfortunateanopportunitytopursuefurthereducation.

Statement on Corporate Governance (cont’d)

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Statement of Internal Control

TheBoardofDirectorsisultimatelyresponsiblefortheGroup’ssystemofinternalcontrolandforreviewingtheeffectivenessoftheinternalcontrolsystemduringtheyearpursuanttoparagraph15.27(b)oftheBursaSecuritiesListingRequirements.InternalcontrolsystemisprimarilydesignedtocaterforthebusinessneedsandmanagethepotentialbusinessrisksoftheGroup.

TheBoardhasoverallresponsibilityfortheGroup’ssystemofinternalcontrol,whichaimsto:

• safeguardshareholders’investmentsandtheGroup’sassets;

• ensurethatproperaccountingrecordsaremaintained;and

• ensurethatthefinancialinformationprovidedwithinthebusinessandforpublicationisreliable.

Inviewofthelimitationsthatareinherentinanysystemsofinternalcontrol,suchsystemsaredesignedtomitigateratherthaneliminatethelikelihoodoffraudanderror.Accordingly,thesesystemscanprovideonlyreasonableandnotabsoluteassuranceagainstmaterialmisstatementorloss.Theconceptofreasonableassurancealsorecognizesthatthecostofcontrolproceduresshouldnotexceedtheexpectedbenefits.

TherearealwaysopportunitiestofurtherimprovethecurrentinternalcontrolsystemsoftheGroup.Aprogrammeofactionstoenhancetheinternalcontrolsystemwasundertakeninlinewiththecorporategovernancecompliances.TheCompanyhason17November2006outsourcedtheinternalauditfunctionoftheGrouptoMatrixConsultancySdnBhd(“MatrixConsultancy”).MatrixConsultancyreportsdirecttotheAuditCommittee.ItsroleistoprovidetheAuditCommitteewithindependentandobjectivereportsonthestateofinternalcontrolsoftheoperatingunitswithintheGroupandtheextentofcompliancebysuchunitswiththeGroup’sestablishedpoliciesandproceduresandtheregulatoryrequirementsoftherelevantauthorities.

Inseekingtoachievetheobjectivesoftheinternalcontrolsystems,thefollowingkeyelementshavebeenconsidered:

CONTROL ENVIRONMENT AND ACTIVITIES

It is imperative that the Group should operate on a sound system of internal control. In general, the overall line ofcommunicationsacrossthebusinessiswelldefinedandthereisanappropriateintegrityinriskmanagement.

Thereisalsoalimitonauthoritythatclearlydefinesauthorizationlimittoensureproperidentificationofaccountabilitiesandsegregationofduties.OperationControlprocedureshavebeenestablishedaccordingtoIS09001:2000standard.Thiswillensurethatthebusinessprocessflowisaccordinglyandproperlyexecuted.

RISK MANAGEMENT

TheBoardfullysupportsthecontentsoftheStatementon InternalControlandGuidanceforDirectorsofPublicListedCompanies.The Board together with the assistance of a professional firm will undertake to review the existing riskmanagementprocessinplacewithinthevariousbusinessoperations,withtheaimofformalizingtheriskmanagementfunctionsacrosstheGroup.

Asanongoingprocess,significantbusinessrisksfacedbytheGroupareidentifiedandevaluatedandconsiderationisgivenonthepotential impactofachievingthebusinessobjectives.This includesexaminingprincipalbusinessrisks incriticalareas,assessingthelikelihoodofmaterialexposuresandidentifyingthemeasurestakentomitigate,avoidoreliminatetheserisks.

GOING CONCERN

TheBoard,basedonthecurrentbusinessactivitiesandfacilitiesavailableaswellasthestableeconomicenvironment,haveareasonableexpectationsthattheGroupisinapositiontocontinueitsoperationalpresenceandexistenceintheforeseeablefuture.HencetheGroupfinancialstatementshavebeenpreparedonthegoingconcernbasis.

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Audit Committee Report

TheAuditCommitteeofWellcallHoldingsBhdispleasedtopresenttheAuditCommitteeReportforthefinancialyearended30September2007.

1. MEMBERSHIP AND ATTENDANCE

Number of Audit Committee Meetings

Composition of Audit Committee Held Attended

RazmibinAlias 4 4Chairman/Independent Non-Executive Director

YangChongYaw,Alan 4 4Member/Independent Non-Executive Director

ChewCheeChek* 4 4Member/Non-Independent Executive Director

Note: * In compliance with the revised Code of Corporate Governance which took effect on 1 October 2007, Chew Chee Chek resigned on 22 November 2007 and Tan Kang Seng has been appointed as the new Audit Committee member on the even date

2. COMPOSITION AND TERMS OF REFERENCE

2.1 MEMBERSHIP

(a) TheAuditCommitteeshallbeappointedbytheBoardfromamongsttheDirectorsoftheCompanyandshallconsistofnotlessthanthree(3)membersofwhomthemajorityshallbeIndependentDirectors.Atleastone(1)memberoftheAuditCommittee:-

i) mustbeamemberoftheMalaysianInstituteofAccountants;or

ii) ifheisnotamemberoftheMalaysianInstituteofAccountants,hemusthaveatleastthree(3)years’workingexperienceand:-

(aa) he must have passed the examinations specified in Part 1 of the 1st Schedule of theAccountantsAct,1967;or

(bb) hemustbeamemberofoneoftheassociationsofaccountantsspecifiedinPartIIofthe1stScheduleoftheAccountantsAct,1967.

(b) NoalternateDirectorshallbeappointedasamemberoftheAuditCommittee.

(c) IntheeventanyvacancyintheAuditCommitteeresultinginthenon-complianceofitem(a)above,thevacancymustbefilledwithinthree(3)monthsofthatevent.

(d) The Board must review the term of office and performance of an Audit Committee and each of itsmembersatleastonceeverythree(3)yearstodeterminewhethersuchAuditCommitteeandmembershavecarriedouttheirdutiesinaccordancewiththeirtermsofreference.

2.2 QUORUM

Aquorumoftwo(2)membersandthemajorityofmemberspresentshallbeIndependentDirectors.

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2.3 CHAIRMAN

Themembersof theAuditCommitteeshallelectaChairman fromamongtheirnumberswhoshallbeanIndependentDirector.

2.4 MEETINGS

Meetingsshallbeheldat least four (4) timesayear.Additionalmeetingsmaybecalledatanytimeat thediscretionoftheChairmanoftheAuditCommittee.

TheAuditCommitteemayinviteanyotherDirectors,managementandstafftobeinattendanceduringmeetingstoassistinitsdeliberation.

TheCompanySecretaryorhisrepresentativesshallresponsibleforsendingoutnoticesofmeetings,preparingandkeepingminutesofmeetingsandcirculatingtheminutesofmeetingstocommitteemembersandtoallmembersoftheBoard.

2.5 OBJECTIVES

(a) TorecommendtotheBoardregardingtheselectionoftheexternalauditors,reviewingtheresultsandscopeoftheauditandotherservicesprovidedbytheGroup’sexternalauditors;

(b) ToreviewandevaluatetheGroup’sinternalauditandcontrolfunctions;

(c) Toberesponsiblefortheassessmentoffinancialriskandmattersrelatingtorelatedpartytransactionsandconflictofinterests;

(d) To assist the Board in discharge its responsibilities by reviewing the adequacy and integrity of theCompany’s internal control systems and management information systems, including systems forcompliancewithapplicablelaws,regulations,rules,directivesandguidelines;

(e) Toreinforcetheindependenceoftheexternalauditorsandtherebyhelpassurethattheywillhavefreereinintheauditprocess;

(f ) Toprovide,bywayofregularmeetings,alineofcommunicationbetweentheBoardandtheexternalauditors;

(g) Toprovideaforumfordiscussionthatisindependentofthemanagement;and

(h) ToreviewthequalityoftheauditsconductedbytheexternalauditorsoftheCompany.

2.6 DUTIES AND RESPONSIBILITIES

ThefunctionsoftheAuditCommitteeareasfollows:-

a) toreviewthefollowingandreportthesametotheBoardofDirectors:-

i) withtheexternalauditors,theauditplan;

ii) withtheexternalauditors,hisevaluationofthesystemofinternalcontrols;

iii) withtheexternalauditor,hisauditreport;

iv) theassistancegivenbytheCompany’semployeestotheexternalauditors;

v) theadequacyofthescope,thefunctionsandresourcesoftheinternalauditfunctionsandthatithasthenecessaryauthoritytocarryoutitswork;

Audit Committee Report (Cont’d)

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vi) theinternalauditprogrammes,processes,theresultsoftheinternalauditprogrammes,processesorinvestigationundertakenandwhetherornotappropriateactionistakenontherecommendationsoftheinternalauditfunction;

vii) thequarterlyandyear-endfinancial statementsof theCompany,prior to theapprovalby theBoard,focusingparticularlyon:-

• Changesinorimplementationofmajoraccountingpolicychanges;

• Significantandunusualevents;

• Thegoingconcernassumption;

• Compliancewithaccountingstandardsandotherlegalrequirements;

viii) anyrelatedpartytransactionandconflictofinterestsituationthatmayarisewithintheCompanyor group including any transaction, procedure or course of conduct that raises questions ofmanagementintegrity;

ix) anyletterofresignationfromtheexternalauditorsoftheCompany;

x) whetherthereisreason(supportedbygrounds)tobelievethattheCompany’sexternalauditorsisnotsuitableforre-appointment;and

xi) reviewthelistofeligibleemployeesandtheallocationofEmployees’ShareOptionScheme(“ESOS”)tobeofferedtothem.

b) toconsiderthefollowingandreportthesametotheBoardofDirectors:-

i) themajorfindingsofinternalinvestigationsandmanagement’sresponse;

ii) othertopicsasdefinedbytheBoard;and

iii) thenominationofapersonorpersonsasexternalauditorstogetherwithsuchotherfunctionsasmaybeagreedbytheAuditCommitteeandtheBoard.

(c) todiscussproblemsandreservationsarisingfromtheinterimandfinalaudits,andanymatterthattheexternalauditormaywishtoraise(intheabsenceofmanagement,wherenecessary).

2.7 RIGHTS OF THE AUDIT COMMITTEE

TheAuditCommitteeshall,wherevernecessaryandreasonablefortheCompanytotheperformanceofitsduties,inaccordancewithaproceduretobedeterminedbytheBoardofDirectorsandatthecostoftheCompany:-

(a) investigateanymatterwithinitstermsofreference;

(b) havetheresourceswhicharerequiredtoperformitsduties;

(c) havefullandunrestrictedaccesstoanyinformationpertainingtotheCompany;

(d) havedirectcommunicationchannelswiththeexternalauditorsandperson(s)carryingouttheinternalauditfunctionoractivity(ifany);

(e) obtainadvicefromindependentpartiesandotherprofessionalsintheperformanceofitsduties;and

(f ) convenemeetingswiththeexternalauditors,excludingtheattendanceoftheexecutivemembersoftheAuditCommittee,wheneverdeemednecessary.

Audit Committee Report (Cont’d)

2�WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

3. SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE

TheAuditCommitteehasdischargeditsdutiesassetoutinitsTermsofReference.Duringthefinancialyear,theactivitiesoftheAuditCommitteeincluded:-

1. ReviewedtheQuarterlyReportsandtheAnnualReporttoensureadherencetolegalandregulatoryreportingrequirementsandappropriateresolutionofallaccountingmattersrequiringsignificantjudgment;

2. Reviewed and deliberated the significant risk areas, internal control and financial matters brought to theattentionoftheexternalauditorsinthecourseoftheirwork;

3. Deliberatedtheemergingfinancialreportingissuespursuanttotheintroductionofnewaccountingstandardsandadditionalstatutory/regulatorydisclosurerequirements;

4. DeliberatedthebestBoardpracticesformeetingmarketexpectationsandprotectingshareholders’intereststhatwerehighlightedbytheexternalauditors;and

5. VerifiedtheallocationofoptionsharespursuanttotheESOStoeligibleemployeeshadbeenmadeinaccordancewiththecriteriaofallocationofoptionsharesassetoutintheBye-LawsoftheESOS.

4. SUMMARY OF ACTIVITIES OF THE OUTSOURCED INTERNAL AUDIT DEPARTMENT

TheCompanyhason17November2006outsourcedtheinternalauditfunctionoftheGrouptoMatrixConsultancy.MatrixConsultancyreportsdirecttotheAuditCommittee.ItsroleistoprovidetheCommitteewithindependentandobjectivereportsonthestateof internalcontrolsoftheoperatingunitswithintheGroupandtheextentofcompliancebysuchunitswiththeGroup’sestablishedpoliciesandproceduresandtheregulatoryrequirementsoftherelevantauthorities.TheAuditCommitteereviewsandapprovestheinternalauditplanoftheGroupsubmittedbyMatrixConsultancy.Duringthefinancialyearended30September2007,theareasauditedincludedauditsofthevariousdepartmentscoveringthesubsidiaryoftheGroup.InternalauditreportswereissuedtotheAuditCommitteeregularly and tabled in the Audit Committee meetings.The reports are also issued to the respective operationsmanagement,incorporatingauditrecommendationsandmanagementresponseswithregardstoanyauditfindingsontheweaknessesinthesystemsandcontrolsoftheoperations.MatrixConsultancyalsofollowsupwithmanagementontheimplementationoftheagreedauditrecommendations.

Audit Committee Report (Cont’d)

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Other Information

SHARE BUYBACKS

TherewerenosharebuybackexerciseundertakenbytheCompanyduringthefinancialyearunderreview.

OPTIONS, WARRANTS OR CONVERTIBLE SECURITIES

Duringthecurrentfinancialyearended30September2007,atotalof3,092,000newordinaryshareswereissuedandallottedpursuanttotheexerciseofESOSoptions.ExceptforESOSoptionsbeinggrantedtothefollowingnon-executivedirectorsduringthefinancialyearended30September2007,thereisnoESOSoptionsbeinggrantedtoothereligibleemployeesofWellcallGroup:

Amount of ESOS Amount of ESOS Name of Director options offered options exercised

RazmibinAlias 80,000 –YangChongYaw,Alan 80,000 –MohdKhasanbinAhmad 40,000 –

Otherthanabove,therewerenoissuancesofwarrantsorconvertiblesecuritiesduringthefinancialyear.

AMERICAN DEPOSITORY RECEIPT (“ADR”) OR GLOBAL DEPOSITORY RECEIPT (“GDR”)

TheCompanydidnotsponsoranyADRorGDRprogrammeduringthefinancialyear.

IMPOSITION OF SANCTIONS/PENALTIES

There were no public sanctions and/or penalties imposed on the Company and its subsidiary company, Directors ormanagementbytherelevantregulatorybodiesduringthefinancialyear.

NON-AUDIT FEES

Thenon-auditfeespaidorpayabletoexternalauditorsandtheiraffiliatedcompanyforthefinancialyearended30September2007areasfollows:

RM’000

O&WTaxConsultantsSdnBhd 5

PROFIT GUARANTEES

Duringthefinancialyear,therewerenoprofitguaranteesgivenbytheCompany.

MATERIAL CONTRACTS

Duringthefinancialyear,therewerenomaterialcontracts(notbeingcontractsenteredintotheordinarycourseofbusiness)enteredintobytheCompanyanditssubsidiariesinvolvingDirectors’and/orsubstantialshareholders’interests.

�0WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

REVALUATION POLICY

Duringthefinancialyear,theCompanyanditssubsidiarydonothaveanyrevaluationpolicyonitslandedproperties.

UTILISATION OF PROCEEDS FROM PUBLIC ISSUE

Theproceedsraisedfromthepublicissuehavebeenfullyutilised,whichissetoutasfollows:

Amount Utilisation as allocated at 7/12/2007 Balance RM’000 RM’000 RM’000

Capitalexpenditure 7,700 7,700 –Workingcapital 6,793 6,793 –Researchanddevelopment 1,105 1,105 –Defrayestimatedlistingexpenses 1,500 1,254 *246 17,098 16,852 246

* utilized as working capital

Other Information (Cont’d)

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financialstatements

32 Directors’Report

37 StatementbyDirectorsandStatutoryDeclaration

38 ReportoftheAuditors

39 BalanceSheets

40 IncomeStatements

41 StatementsofChangesinEquity

43 CashFlowStatements

46 NotestotheFinancialStatements

�2WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

Directors’ Reportfor the year ended �0th September, 2007

ThedirectorshavepleasureinsubmittingtheirreportandtheauditedfinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended30thSeptember,2007.

PRINCIPAL ACTIVITIES

TheCompanyisprincipallyengagedasaninvestmentholdingcompany.TheprincipalactivityofthesubsidiarycompanyisdisclosedinNote5tothefinancialstatements.Therehavebeennosignificantchangesintheseactivitiesduringthefinancialyear.

RESULTS

Group Company RM RM

Profitbeforetaxation 16,630,396 21,077,242Taxation (1,424,297) –

Profitfortheyear 15,206,099 21,077,242

DIVIDENDS

DividendsdeclaredandpaidbytheCompanysincetheendofthepreviousfinancialyearwere:

i) afirstinterimtaxexemptdividendof3.60senpershareamountingtoRM3,024,792inrespectofthefinancialyearended30thSeptember,2007waspaidon15thMarch,2007.

ii) asecondinterimtaxexemptdividendof4.40senpershareamountingtoRM3,751,309inrespectofthefinancialyearended30thSeptember,2007waspaidon28thSeptember,2007.

iii) on22ndNovember,2007,thedirectorsdeclaredandapprovedathirdinterimtaxexemptdividendof1.50senpershareinrespectofthefinancialyearended30thSeptember,2007.

RESERVES AND PROVISIONS

Therewerenomaterialtransferstoorfromreservesorprovisionsduringthefinancialyear.

ISSUE OF SHARES

Duringthefinancialyear,thefollowingordinaryshareswereissuedbytheCompany:

Class Number of shares Term of issue Purpose of issue Ordinary 3,092,000 Cash ExerciseofESOS

SHARE OPTION

Duringthefinancialyear,theCompanydidnotgrantanyoptiontoanypersontotakeuptheunissuedsharesoftheCompany,apartfromtheissueofsharespursuanttotheEmployees’ShareOptionScheme(“ESOS”).

TheESOSoftheCompanyisgovernedbytheBy-LawsapprovedbytheshareholdersatanExtraordinaryGeneralMeetingheldon15thNovember,2005.ItgrantsoptionstoeligibledirectorsandemployeesoftheGrouptosubscribeforupto15%oftheissuedandpaid-upsharecapitaloftheCompany.

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ThesalientfeaturesoftheESOSareasfollows:

i) Eligibledirectorsandemployeesarethosewhoattainedtheageofatleast18yearsoldandareemployedfull-timebyandonthepayrollofacompanywithintheGroupandhaveservedintheemploymentoftheGroup.

ii) Eachoffershallbemadeinwritingandispersonaltotheeligiblegranteeandshallbeincapableofbeingassigned,transferred,encumberedorotherwisedisposedofinanymannerwhatsoever.

iii) Thesubscriptionpriceofeachordinarysharecomprisedinanyoptionshallbeasfollows:

a) InrespectofanyofferwhichismadeinconjunctionwiththeCompany’slistingonBursaSecurities,theinitialpublicofferprice;and

b) InrespectofanyofferwhichismadesubsequenttotheCompany’slistingonBursaSecurities,theweightedaveragemarketpriceofthesharesforthefive(5)marketdaysimmediatelyprecedingthedateofofferwitha discount of not more than 10% (or such other pricing mechanism as may be permitted by the relevantauthorities)attheESOScommittee’sdiscretion,providedthatthesubscriptionpriceshallinnoeventbelessthantheparvalueoftheshares.

iv) TheESOSshallbeimplementedforayearof10yearsfromthedateoffullcompliancewithallrelevantrequirementsgoverningtheESOS.

v) ThenumberofnewsharesthatmaybeofferedtoaneligiblegranteeshallbedeterminedatthediscretionoftheESOScommitteeaftertakingintoconsiderationtheperformance,seniorityandlengthofserviceoftheeligiblegrantee.

vi) AllnewordinarysharesissueduponexerciseoftheoptionsgrantedundertheESOSwillrankparipassuinallrespectswiththeexistingordinarysharesoftheCompanyexceptthatthesharessoissuedwillnotbeentitledtoanydividends,rights,allotmentsand/oranydistributionswhichmaybedeclared,madeorpaidtoshareholderspriortothedateofallotmentofthenewordinaryshares.

DetailsoftheESOSoptionsgrantedtoeligibledirectorsandemployeesaresetoutinthesectiononDirectors’interestsinsharesinthisreportandNote11tothefinancialstatements.

SUBSEQUENT EVENT

EventsubsequenttothefinancialyearisdisclosedinNote24.

DIRECTORS

Thedirectorswhoservedsincethedateofthelastreportare:

HuangSha,PMPDatukNgPengHong@NgPengHay,DMSM,DSM,PJKLeongHonChongChewCheeChekDato’HajiMohtarBinNong,DPMT,ASM,PJC,PJK,BLBTanKangSengYangChongYawAlanRazmiBinAliasMohdKhasanBinAhmadMatZaidBinIbrahim,PJC (alternate director to Dato’ Haji Mohtar Bin Nong, DPMT, ASM, PJC, PJK, BLB)

Directors’ Report (Cont’d)

for the year ended �0th September, 2007

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

DIRECTORS’ INTERESTS IN SHARES

AccordingtotheRegisterofDirectors’shareholdings,particularsofdirectors’interestsinthesharesoftheCompanyanditssubsidiarycompanyattheendofthefinancialyearareasfollows:

Number of ordinary shares of RM0.50 each Balance at Balance at 01.10.06 Allotted Sold 30.09.07 Direct interest in ordinary sharesof the Company HuangSha,PMP – 1,000,000 – 1,000,000DatukNgPengHong@ NgPengHay,DMSM,DSM,PJK – 300,000 (300,000) –LeongHonChong – 500,000 – 500,000TanKangSeng – 300,000 – 300,000

Deemed interest in ordinary sharesof the Company

HuangSha,PMP* – 30,000 – 30,000 Indirect interest in ordinary sharesof the Company LifewiseAllianceSdn.Bhd. HuangSha,PMP 27,342,679 – – 27,342,679LeongHonChong 27,342,679 – – 27,342,679ChewCheeChek 27,342,679 – – 27,342,679 MaximumPerspectiveSdn.Bhd.DatukNgPengHong@ NgPengHay,DMSM,DSM,PJK 9,765,241 – – 9,765,241TanKangSeng 9,765,241 – – 9,765,241

* Deemed interested in shares by virtue of Section 134(12)(c) of the Companies (Amendment) Act, 2007.

Options over number of ordinary shares of RM0.50 each Balance at Balance at 01.10.06 Granted Exercised 30.09.07

Direct interest in ESOS optionsof the Company

HuangSha,PMP 1,000,000 – (1,000,000) –DatukNgPengHong@ NgPengHay,DMSM,DSM,PJK 300,000 – (300,000) –LeongHonChong 600,000 – (500,000) 100,000ChewCheeChek 600,000 – – 600,000TanKangSeng 300,000 – (300,000) –YangChongYawAlan – 80,000 – 80,000RazmiBinAlias – 80,000 – 80,000MohdKhasanBinAhmad – 40,000 – 40,000

Directors’ Report (Cont’d)

for the year ended �0th September, 2007

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ByvirtueoftheirinterestsinthesharesoftheCompany,HuangSha,PMP,DatukNgPengHong@NgPengHay,DMSM,DSM,PJK,LeongHonChong,ChewCheeChekandTanKangSengarealsodeemedinterestedinsharesofitssubsidiarycompanytotheextentthatWellcallHoldingsBerhadhasaninterest.

Saveasdisclosedabove,noneoftheotherdirectorsholdingofficeat30thSeptember,2007hadanyinterestintheordinarysharesoftheCompanyanditssubsidiarycompanyduringthefinancialyear.

DIRECTORS’ BENEFITS

Sincetheendofthepreviousfinancialperiod,nodirectorhasreceivedorbecomeentitledtoreceiveanybenefit(otherthanabenefit includedintheaggregateamountofemolumentsreceivedordueandreceivablebydirectorsshowninthefinancialstatements,orthefixedsalaryofafull-timeemployeeoftheCompany)byreasonofacontractmadebytheCompanyorarelatedcorporationwithanydirectororwithafirmofwhichthedirectorisamemberorwithacompanyinwhichthedirectorhasasubstantialfinancialinterest.

NeitherduringnorattheendofthefinancialyearwastheCompanyapartytoanyarrangementswhoseobjectwastoenablethedirectorstoacquirebenefitsbymeansoftheacquisitionofsharesordebenturesoftheGroupandoftheCompanyoranyotherbodycorporate.

OTHER STATUTORY INFORMATION

BeforetheIncomeStatementsandBalanceSheetsoftheGroupandoftheCompanyweremadeout,thedirectorstookreasonablesteps:

i) toascertainthatproperactionhadbeentakeninrelationtothewritingoffofbaddebtsand,themakingofallowancefordoubtfuldebts,andhavesatisfiedthemselvesthattherewerenoknownbadordoubtfuldebts;and

ii) toensurethatanycurrentassetswhichwereunlikelytorealiseintheordinarycourseofbusinesstheirvalueasshownintheaccountingrecordsofwhichwerewrittendowntoanamountwhichtheymightbeexpectedsotorealise.

Atthedateofthisreport,thedirectorsarenotawareofanycircumstances:

i) whichwouldrequireanyamounttobewrittenoffasbaddebts,orprovidedforasdoubtfuldebts;

ii) whichwouldrenderthevaluesattributedtothecurrentassetsinthefinancialstatementsoftheGroupandoftheCompanymisleading;

iii) whichhavearisenwhichrenderadherencetotheexistingmethodsofvaluationofassetsorliabilitiesinthefinancialstatementsoftheGroupandoftheCompanymisleadingorinappropriate;and

iv) nototherwisedealtwithinthisreportorinthefinancialstatementsoftheGroupandoftheCompany,thatwouldrenderanyamountstatedintherespectivefinancialstatementsmisleading.

Atthedateofthisreport,theredoesnotexist:

i) anychargeontheassetsoftheGroupandoftheCompanythathasarisensincetheendofthefinancialyearwhichsecurestheliabilitiesofanyotherperson;or

ii) anycontingentliabilityinrespectoftheGroupandoftheCompanythathasarisensincetheendofthefinancialyear.

NocontingentliabilityorotherliabilitiesoftheGroupandoftheCompanyhasbecomeenforceable,orislikelytobecomeenforceablewithintheperiodoftwelvemonthsaftertheendofthefinancialyearwhich,intheopinionofthedirectors,willormaysubstantiallyaffecttheabilityoftheGroupandoftheCompanytomeettheirobligationsasandwhentheyfalldue.

Intheopinionofthedirectors:

i) theresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearhavenotbeensubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature;and

ii) noitem,transactionoreventofamaterialandunusualnaturehasarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportwhichislikelytoaffectsubstantiallytheresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearinwhichthisreportismade.

Directors’ Report (Cont’d)

for the year ended �0th September, 2007

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

AUDITORS

TheAuditors,ONG&WONG,haveindicatedtheirwillingnesstocontinueinoffice.

Signedinaccordancewitharesolutionofthedirectors

HUANG SHA, PMPDirector

CHEW CHEE CHEKDirector

KualaLumpurDated:5thDecember,2007

Directors’ Report (Cont’d)

for the year ended �0th September, 2007

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Statement by Directors(pursuant to Section ��� (��) of the Companies Act, ����)

We,HUANG SHA, PMPandCHEW CHEE CHEK,twoofthedirectorsofWELLCALL HOLDINGS BERHAD,statethat,intheopinionofthedirectors,thefinancialstatementssetoutonpages39to67aredrawnupinaccordancewiththeprovisionsoftheCompaniesAct,1965andapplicableMASBapprovedaccountingstandardsinMalaysiaforentitiesotherthanprivateentitiessoastogiveatrueandfairviewofthestatesofaffairsoftheGroupandoftheCompanyasat30thSeptember,2007andoftheresultsoftheiroperations,changesinequityandcashflowsoftheGroupandoftheCompanyforthefinancialyearendedonthatdate.

Signedinaccordancewitharesolutionofthedirectors

HUANG SHA, PMPDirector

CHEW CHEE CHEKDirector

KualaLumpurDated:5thDecember,2007

I,CHEW CHEE CHEK,thedirectorprimarilyresponsibleforthefinancialmanagementofWELLCALL HOLDINGS BERHAD,dosolemnlyandsincerelydeclarethatthefinancialstatementssetoutonpages39to67are,tothebestofmyknowledgeandbelief,correctandImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationAct,1960.

Subscribedandsolemnlydeclaredby )theabovenamedatKualaLumpurin )WilayahPersekutuanon )5thDecember,2007 ) ) CHEW CHEE CHEK

Beforeme,

KOK POH HIMNo.W386CommmissionerforOaths

Statutory Declaration(pursuant to Section 169 (16) of the Companies Act, 1965)

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

Report of the Auditorsto the Members of Wellcall Holdings Berhad (Incorporated in Malaysia)

Wehaveauditedthefinancialstatementssetoutonpages39to67.ThesefinancialstatementsaretheresponsibilityoftheCompany’sdirectors.

Itisourresponsibilitytoformanindependentopinion,basedonouraudit,onthosefinancialstatementsandtoreportouropiniontoyou,asabody,inaccordancewithSection174oftheCompaniesAct,1965andfornootherpurpose.Wedonotassumeresponsibilitytowardsanyotherpersonforthecontentofthisreport.

WehaveconductedourauditinaccordancewithapprovedauditingstandardsinMalaysia.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingpoliciesusedandsignificantestimatesmadebydirectors,aswellasevaluatingtheoverallfinancialstatementspresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.

Inouropinion:

(a) thefinancialstatementsareproperlydrawnupinaccordancewiththeprovisionsoftheCompaniesAct,1965andapplicableMASBapprovedaccountingstandardsinMalaysiaforentitiesotherthanprivateentities,soastogiveatrueandfairviewof:

(i) themattersrequiredbySection169oftheCompaniesAct,1965tobedealtwithinthefinancialstatementsoftheGroupandoftheCompany;and

(ii) thestateofaffairsoftheGroupandoftheCompanyat30thSeptember,2007andoftheresultsoftheoperationsandofthecashflowsoftheGroupandoftheCompanyforthefinancialyearendedonthatdate;

and

(b) the accounting and other records and the registers required by the Act to be kept by the Company and by thesubsidiarycompanyforwhichwehaveactedasauditorshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

WearesatisfiedthatthefinancialstatementsofthesubsidiarycompanythathavebeenconsolidatedwiththeCompany’sfinancialstatementsareinformandcontentappropriateandproperforthepurposesofthepreparationoftheconsolidatedfinancial statements and we have received satisfactory information and explanations as required by us for thesepurposes.

Theauditors’reportonthefinancialstatementsofthesubsidiarycompanywasnotsubjecttoanyqualificationanddidnotincludeanycommentmadeundersubsection(3)ofSection174oftheCompaniesAct1965.

ONG & WONGAF0241 CharteredAccountants

ONG KONG LAI494/06/08(J/PH)PartnerofFirm

KualaLumpurDated:5thDecember,2007

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Balance Sheetsas at �0th September, 2007

Group Company Note 2007 2006 2007 2006 RM RM RM RM (Restated)

ASSETSNon-current assetsProperty,plantandequipment 3 26,438,983 23,828,646 – –Prepaidleasepaymentsforland 4 2,325,001 2,372,477 – –Investmentsinsubsidiarycompany 5 – – 32,550,803 32,550,803Otherinvestment 6 10,000 10,000 – –

28,773,984 26,211,123 32,550,803 32,550,803

Current assetsInventories 7 12,121,602 8,774,588 – –Tradeandotherreceivables 8 7,646,246 4,009,581 29,851 –Amountduefromsubsidiarycompany 9 – – 23,639,625 15,296,422Depositswithlicensedbanks 10 22,492,791 19,460,591 10,000,000 600,000Cashandbankbalances 3,189,685 4,062,265 59,829 819,750

45,450,324 36,307,025 33,729,305 16,716,172

TOTAL ASSETS 74,224,308 62,518,148 66,280,108 49,266,975

EQUITY AND LIABILITIESEquity attributable to equity holders of the Company Sharecapital 11 42,646,005 41,100,005 42,646,005 41,100,005Sharepremium 9,971,678 7,294,780 9,971,678 7,294,780Reserves 12 13,552,239 6,032,930 13,519,744 129,292

Total equity 66,169,922 54,427,715 66,137,427 48,524,077 Non-current liabilitiesDeferredtaxation 13 478,909 433,000 – – Current liabilitiesTradeandotherpayables 14 7,313,959 7,589,010 142,681 742,898Taxpayable 261,518 68,423 – –

7,575,477 7,657,433 142,681 742,898

Total liabilities 8,054,386 8,090,433 142,681 742,898

TOTAL EQUITY AND LIABILITIES 74,224,308 62,518,148 66,280,108 49,266,975

Theannexednotesformanintegralpartofthesefinancialstatements.

�0WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

Income Statementsfor the year ended �0th September, 2007

Group Company 01.10.06 to 23.08.05 to 01.10.06 to 23.08.05 to Note 30.09.07 30.09.06 30.09.07 30.09.06 RM RM RM RM (Restated) (Restated) Revenue 91,391,822 32,445,879 21,530,000 3,200,000Costofsales (66,975,987) (22,991,346) – –

Grossprofit 24,415,835 9,454,533 21,530,000 3,200,000Otheroperatingincome 15 1,196,427 325,133 54,740 20,140

25,612,262 9,779,666 21,584,740 3,220,140Administrativeexpenses (5,409,019) (3,063,289) (507,498) (1,241,800)Selling&distributioncosts (3,326,484) (1,506,365) – –

Profitfromoperations 16,876,759 5,210,012 21,077,242 1,978,340Financecosts (246,363) (93,515) – –

Profitbeforetaxation 16 16,630,396 5,116,497 21,077,242 1,978,340Taxation 17 (1,424,297) (502,587) – –

Profitfortheyear/period 18 15,206,099 4,613,910 21,077,242 1,978,340

Earningspershare(sen) 19 -Basic 18.10 15.25 -Diluted 17.61 15.08

Dividendpershare(sen) 20 8.00 3.65

Theannexednotesformanintegralpartofthesefinancialstatements.

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Statements of Changes in Equityfor the year ended �0th September, 2007

< ------------- Attributable to Equity Holders of the Company ------------- > < -------------- Non-distributable -------------- > Distributable Share Share Reserve on Option Retained Total Note capital premium consolidation reserve profit equity RM RM RM RM RM RM

Group At23rdAugust,2005 2 – – – – 2

Issueofsharespursuant toacquisitionof subsidiarycompany 32,550,803 – 3,268,068 – – 35,818,871

Issueofsharespursuant topublicissue 8,549,200 8,549,200 – – – 17,098,400

ESOSoptions-granted – – – 1,151,252 – 1,151,252

Listingexpenses – (1,254,420) – – – (1,254,420)

Profitfortheperiod – – – – 4,613,910 4,613,910

Dividends 20 – – – – (3,000,300) (3,000,300)

At30thSeptember,2006 -aspreviouslyreported 41,100,005 7,294,780 3,268,068 – 2,764,862 54,427,715-prioryearadjustment 25 – – – 1,151,252 (1,151,252) –

-asrestated 41,100,005 7,294,780 3,268,068 1,151,252 1,613,610 54,427,715

EffectsofadoptingFRS3 25 – – (3,268,068) – 3,268,068 –

41,100,005 7,294,780 – 1,151,252 4,881,678 54,427,715

ESOSoptions-granted – – – 279,422 – 279,422-exercised 1,546,000 2,736,111 – (1,190,111) – 3,092,000

Listingexpenses – (59,213) – – – (59,213)

Profitfortheyear – – – – 15,206,099 15,206,099

Dividends 20 – – – – (6,776,101) (6,776,101)

At30thSeptember,2007 42,646,005 9,971,678 – 240,563 13,311,676 66,169,922

Theannexednotesformanintegralpartofthesefinancialstatements.

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Non-distributable Distributable Retained profit/ Share Share Option (Accumulated Total Note capital premium reserve loss) equity RM RM RM RM RM Company At23rdAugust,2005 2 – – – 2 Issueofsharespursuantto acquisitionofsubsidiary company 32,550,803 – – – 32,550,803 Issueofsharespursuant topublicissue 8,549,200 8,549,200 – – 17,098,400 ESOSoptions-granted – – 1,151,252 – 1,151,252 Listingexpenses – (1,254,420) – – (1,254,420) Profitfortheperiod – – – 1,978,340 1,978,340 Dividends 20 – – – (3,000,300) (3,000,300) At30thSeptember,2006 -aspreviouslyreported 41,100,005 7,294,780 – 129,292 48,524,077-prioryearadjustment 25 – – 1,151,252 (1,151,252) –

-asrestated 41,100,005 7,294,780 1,151,252 (1,021,960) 48,524,077

ESOSoptions-granted – – 279,422 – 279,422-exercised 1,546,000 2,736,111 (1,190,111) – 3,092,000

Listingexpenses – (59,213) – – (59,213)

Profitfortheyear – – – 21,077,242 21,077,242

Dividends 20 – – – (6,776,101) (6,776,101)

At30thSeptember,2007 42,646,005 9,971,678 240,563 13,279,181 66,137,427

Theannexednotesformanintegralpartofthesefinancialstatements.

Statements of Changes in Equity (Cont’d)

for the year ended �0th September, 2007

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Cash Flow Statementsfor the year ended �0th September, 2007

Group Company 01.10.06 to 23.08.05 to 01.10.06 to 23.08.05 to Note 30.09.07 30.09.06 30.09.07 30.09.06 RM RM RM RM (Restated) (Restated)

CASH FLOWS FROM OPERATING ACTIVITIESProfitbeforetaxation 16,630,396 5,116,497 21,077,242 1,978,340Adjustmentsfor: Amortisationof prepaidleasepayments 47,476 23,006 – – Depreciationofproperty, plant&equipment 2,795,730 756,110 – – Share-basedcompensation 279,422 1,151,252 279,422 1,151,252 Unrealisedgainonforeignexchange (562,702) (8,934) – – Gainondisposalofproperty, plant&equipment (9,999) – – – Interestexpense 246,363 93,515 – – Interestincome (604,219) (313,714) (54,644) (20,140)

Operatingprofitbeforeworking capitalchanges 18,822,467 6,817,732 21,302,020 3,109,452

Increaseininventories (3,347,014) (3,173,146) – –(Increase)/Decreaseinreceivables (3,073,963) 4,842,489 (8,373,054) (15,296,422)(Decrease)/Increaseinpayables (275,051) 2,018,661 (600,217) 742,898

Cashgeneratedfrom/(usedin)operations 12,126,439 10,505,736 12,328,749 (11,444,072)Taxpaid (1,185,293) (87,864) – –Interestpaid (246,363) (93,515) – –Interestreceived 604,219 313,714 54,644 20,140

Netcashgeneratedfrom/(usedin) operatingactivities 11,299,002 10,638,071 12,383,393 (11,423,932) CASH FLOWS FROM INVESTING ACTIVITIES Proceedsfromdisposalofproperty, plant&equipment 10,000 – – –Purchaseofproperty,plant&equipment (5,406,068) (14,108,636) – –Acquisitionofleaseholdland – (1,274,585) – –Acquisitionofsubsidiarycompany A(iii) – (17,126,479) – (32,550,803)

Netcashusedininvestingactivities (5,396,068) (32,509,700) – (32,550,803) CASH FLOWS FROM FINANCING ACTIVITIES Proceedsfromissueofshares 3,092,000 49,649,205 3,092,000 49,649,205Paymentoflistingexpenses (59,213) (1,254,420) (59,213) (1,254,420)Dividendpaid (6,776,101) (3,000,300) (6,776,101) (3,000,300)

Netcash(usedin)/generated fromfinancingactivities (3,743,314) 45,394,485 (3,743,314) 45,394,485 Netincreaseincashandcashequivalents 2,159,620 23,522,856 8,640,079 1,419,750Cashandcashequivalents atbeginningofyear 23,522,856 – 1,419,750 –

Cashandcashequivalents atendofyear/period B 25,682,476 23,522,856 10,059,829 1,419,750

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

NOTE

A. ACQUISITION OF SUBSIDIARY COMPANY

i) Effects on financial results

TheeffectsofthisacquisitiononthefinancialresultsoftheGroupduringthepreviousfinancialperiodareshownbelow:

23.08.05 to 30.09.06 RM

Revenue 32,445,879Costofsales (22,991,346)

Grossprofit 9,454,533Otheroperatingincome 304,993

9,759,526

Administrativeexpenses (1,821,489)Selling&distributionexpenses (1,506,365)

Profitfromoperations 6,431,672

Financecosts (93,515)

Profitbeforetaxation 6,338,157Taxation (502,587)

IncreaseinGroupprofitfortheyear 5,835,570

ii) Effects on financial position

Theeffectsof thisacquisitiononthefinancialpositionof theGroupatpreviousbalancesheetdateareasfollows:

2006 RM

Property,plant&equipment 13,352,526Prepaidleasepaymentsforland 1,251,579Inventories 3,173,146Tradereceivables (344,591)Otherreceivables,deposits&prepayments (3,596,446)Cash&bankbalances 6,678,782Tradepayables (844,846)Otherpayables&accruals (1,334,495)Taxation (53,043)Deferredtaxation (350,620)

IncreaseinGroupnetassets 17,931,992

Cash Flow Statements (Cont’d)

for the year ended �0th September, 2007

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NOTE (Cont’d)

A. ACQUISITION OF SUBSIDIARY COMPANY (Cont’d)

iii) Effects on cash flow statement

TheeffectsofthisacquisitiononthecashflowstatementoftheGroupduringthepreviousfinancialperiodareasfollows:

23.08.05 to 30.09.06 RM

Property,plant&equipment 10,476,120Prepaidleasepaymentsforland 1,120,898Otherinvestment 10,000Inventories 5,601,442Tradereceivables 3,927,964Otherreceivables,deposits&prepayments 864,851Depositsformachineries 3,157,803Cash&bankbalances 15,424,324Tradepayables (2,308,591)Otherpayables&accruals (2,358,180)Taxation (15,380)Deferredtaxation (82,380)

Fairvalueofnetassetacquiredon17thApril,2006 35,818,871Reserveonconsolidation (3,268,068)

Purchaseconsiderationdischargedbycash 32,550,803Less:Cash&cashequivalentsinsubsidiaryacquired (15,424,324)

17,126,479

B. CASH AND CASH EQUIVALENTS

Cashandcashequivalentsincludedinthecashflowstatementcomprisethefollowingbalancesheetamounts:

Group Company 2007 2006 2007 2006 RM RM RM RM

Depositswithlicensedbanks 22,492,791 19,460,591 10,000,000 600,000Cash&bankbalances 3,189,685 4,062,265 59,829 819,750

25,682,476 23,522,856 10,059,829 1,419,750

Cash Flow Statements (Cont’d)

for the year ended �0th September, 2007

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

Notes to the Financial Statements- �0th September, 2007

1. GENERAL INFORMATION

TheCompany isprincipallyengagedasan investmentholdingcompany. Theprincipalactivityofthesubsidiarycompanyisdisclosedinnote5tothefinancialstatements.

TheCompanyisapubliclimitedliabilitycompany,incorporatedanddomiciledinMalaysia,andislistedontheSecondBoardofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”).

TheregisteredofficeislocatedatUnitC-6-5,6thFloor,BlockC,MeganAvenueII,No.12,JalanYapKwanSeng,50450KualaLumpur.

TheprincipalplaceatwhichbusinessiscarriedonislocatedatPlotNo.48,JalanJohan2/5,KawasanPerindustrianPengkalanII,FasaII,31500Lahat,Ipoh,PerakDarulRidzuan.

2. ACCOUNTING POLICIES

TheaccountingpoliciesadoptedbytheGroupandtheCompanyareconsistentwiththoseadoptedinthepreviousyearsexceptfortheadoptionofthefollowingnew/revisedFRSseffectiveforfinancialyearbeginning1stOctober,2006:

FRS2 Share-basedPaymentFRS3 BusinessCombinationsFRS101 PresentationofFinancialStatementsFRS102 InventoriesFRS108 AccountingPolicies,ChangesinEstimatesandErrorsFRS110 EventsaftertheBalanceSheetDateFRS116 Property,PlantandEquipmentFRS117 LeasesFRS121 TheEffectsofChangesinForeignExchangeRatesFRS124 RelatedPartyDisclosuresFRS127 ConsolidatedandSeparateFinancialStatementsFRS132 FinancialInstruments:DisclosureandPresentationFRS133 EarningsPerShareFRS136 ImpairmentofAssets

Forthissetoffinancialstatements,theGroupandtheCompanyhavechosennottoearlyadoptthefollowingFRS:

Effective for financial FRS periods beginning on or after

FRS139 FinancialInstruments: Deferred RecognitionandMeasurement

TheGroupandtheCompanyarenotrequiredtodisclosethepossibleimpactofapplyingFRS139onthesefinancialstatementsbyvirtueofexemptionsprovidedunderthisFRS.

Theadoptionofthenew/revisedFRSsdoesnothavesignificantfinancialimpactontheGroupandtheCompanyotherthanFRS2,FRS3andFRS117.Theeffectsofthechangesinaccountingpoliciesresultingfromtheadoptionofthenew/revisedFRSsaredisclosedinNote25.

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Notes to the Financial Statements (Cont’d)

- �0th September, 2007

2. ACCOUNTING POLICIES (CONT’D)

a. Basis of Preparation

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedinaccordancewiththeprovisionsoftheCompaniesAct,1965andapplicableapprovedaccountingstandardsinMalaysiaforentitiesotherthanprivateentitiesissuedbytheMalaysianAccountingStandardsBoard(“MASB”).Thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,exceptwhereotherwisestatedintherespectiveaccountingpolicies.

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

b. Subsidiary Company and Basis of Consolidation

(i) Subsidiary Company

SubsidiaryCompanyisanentityoverwhichtheGrouphasthepower,directlyorindirectly,toexercisecontroloverthefinancialandoperatingpoliciessoastoobtainbenefitsfromitsactivities.

In the Company’s separate financial statements, investment in subsidiary company is stated at costlessimpairmentlosses,ifany.Ondisposalofsuchinvestment,thedifferencebetweenthenetdisposalproceedsanditscarryingamountisincludedintheincomestatement.ThepolicyfortherecognitionandmeasurementofimpairmentlossesisinaccordancewithNote2(f ).

(ii) Basis of Consolidation

TheconsolidatedfinancialstatementsincludethefinancialstatementsoftheCompanyanditssubsidiarycompanymadeuptotheendofthefinancialyear.Theresultsofthesubsidiarycompanyisconsolidatedusingtheacquisitionmethod.

Undertheacquisitionmethod,subsidiarycompanyareconsolidatedfromthedateonwhichcontrolistransferredtotheGroupandarenolongerconsolidatedfromthedatethatcontrolceases.Thecostofacquisitionismeasuredastheaggregateoffairvalues,atthedateofexchange,oftheassetsgiven,liabilitiesincurredorassumed,andequityinstrumentsissued,plusanycostsdirectlyattributabletothebusiness combination. Identifiable assets acquired, liabilities and contingent liabilities assumed in abusinesscombinationaremeasuredinitiallyattheirfairvaluesattheacquisitiondate,irrespectiveoftheextentofanyminorityinterest.AnydifferencebetweenthecostofacquisitionandtheGroup’sinterestinthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesacquiredisrecognisedasgoodwillornegativegoodwill.

Intragrouptransactions,balancesandresultingunrealisedgainsareeliminatedonconsolidationandtheconsolidatedfinancialstatementsreflectexternaltransactionsonly.Unrealisedlossesareeliminatedonconsolidationunlesscostscannotberecovered.Consistentaccountingpoliciesareappliedfortransactionsandeventsinsimilarcircumstances.

c. Foreign Currencies

TheindividualfinancialstatementsofeachentityintheGrouparemeasuredusingtheirrespectivefunctionalcurrency.

Inpreparingtheindividualfinancialstatements,transactionsincurrenciesotherthantheentity’sfunctionalcurrency(“foreigncurrencies”)aretranslatedintothefunctionalcurrenciesusingtheexchangeratesprevailingatthedatesofthetransactions.Ateachbalancesheetdate,monetaryassetsandliabilitiesdenominatedinforeigncurrenciesaretranslatedattheratesprevailingonthebalancesheetdate.Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyaretranslatedattheexchangerateprevailingatthedateoftheinitialtransaction.Non-monetaryitemsmeasuredatfairvalueinaforeigncurrencyaretranslatedatexchangeratesatthedatewhenthefairvalueisdetermined.ExchangedifferencesarisingonthesettlementofmonetaryitemsorontranslatingmonetaryitemsatbalancesheetdatearerecognisedintheincomestatementexceptforthosearisingonmonetaryitemsthatformpartoftheGroup’snetinvestmentinforeignoperation.

Notes to the Financial Statements (Cont’d)

- �0th September, 2007

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

2. ACCOUNTING POLICIES (CONT’D)

c. Foreign Currencies (Cont’d)

Theclosingratesusedinthetranslationofforeigncurrencymonetaryassetsandliabilitiesareasfollows:

2007 2006 RM RM

1UnitedStatesDollar(“USD”) 3.35 3.651EURO 4.82 4.65

d. Property, Plant and Equipment and Depreciation

Property,plant&equipmentarestatedatcostlessaccumulateddepreciationandanyimpairmentlosses.

Otherproperty,plant&equipmentaredepreciatedonastraightlinebasisatratescalculatedtowriteoffthecostoftheassetsovertheirestimatedusefullives.Theprincipalannualratesare:

Factorybuilding 51-60yearsElectricalinstallation 10%-15%Firefightinginstallation 10%-15%Furniture&fittings 15%Motorvehicles 15%Officeequipment 15%Plantandmachinery 10%-15%

Gainorlossarisingfromdisposalofanassetisdeterminedasthedifferencebetweentheestimatednetdisposalproceedsandthecarryingamountofanasset,andisrecognisedintheincomestatement.

e. Leased Assets

Leaseholdlandthatnormallyhasanindefiniteeconomiclifeandtitleisnotexpectedtopasstothelesseebytheendoftheleasetermistreatedasanoperatinglease.Thepaymentmadeonenteringintooracquiringaleaseholdlandisaccountedasprepaidleasepaymentsthatareamortisedovertheleasetermrangingfrom51to60years.

TheGrouphadpreviouslyclassifiedaleaseoflandasfinanceleaseandhadrecognisedtheamountofprepaidleasepaymentsaspropertywithinitsproperty,plantandequipment. TheGrouptreatssuchaleaseasanoperatinglease,withtheunamortisedcarryingamountclassifiedasprepaidleasepaymentsforland.

f. Impairment of Assets

ThecarryingamountoftheGroup’sassets,otherthaninventories,deferredtaxassetsandfinancialassetsarereviewedateachbalancesheetdatetodeterminewhetherthereareanyindicationsofimpairment.Ifanysuchindicationsexist,theasset’srecoverableamountisestimatedtodeterminetheamountofimpairmentloss.Thepoliciesonimpairmentofassetsaresummarisedasfollows:

Property,plantandequipmentandinvestmentinsubsidiarycompanyarereviewedforobjectiveindicationsof impairment at each balance sheet date or whenever there is any indication that these assets may beimpaired.

Wheresuchindicationsexist,impairmentlossisdeterminedastheexcessoftheasset’scarryingvalueoveritsrecoverableamount(greaterofvalueinuseorfairvaluelesscoststosell)andisrecognisedintheincomestatement.Anyreversalofan impairment loss for theseassets is recognised in the incomestatement.Thecarryingamountisincreasedtoitsrevisedrecoverableamount,providedthattheamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined(netofamortisationordepreciation)hadnoimpairmentlossbeenrecognisedfortheassetinprioryears.

Ifanassetiscarriedatarevaluedamount,impairmentlossistreatedasarevaluationdecreasetotheextentofpreviouslyrecognisedrevaluationsurplusforthesameasset.Anysubsequentreversalistreatedasarevaluationincrease.

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Notes to the Financial Statements (Cont’d)

- �0th September, 2007

2. ACCOUNTING POLICIES (CONT’D)

g. Inventories

Inventoriesarevaluedatthelowerofcostandnetrealisablevalue.Costisdeterminedonafirst-in,first-outbasis.

Costoffinishedgoodsandwork-in-progress includesdirectmaterials,direct labour,otherdirectcostsandappropriateproductionoverheads.

Netrealisablevaluerepresentstheestimatedsellingpriceslessallestimatedcoststocompletionandcoststobeincurredinmarketing,sellinganddistribution.

Whereobsoleteordamagedinventoriescanbepositivelyidentified,anallowanceforobsoleteanddamagedinventoriesismade.

h. Financial Instruments

Financialinstrumentscomprisefinancialassets,financialliabilitiesandoff-balancesheetfinancialinstruments.FinancialinstrumentsarerecognisedinthebalancesheetwhentheGrouphasbecomeapartytothecontractualprovisionsoftheinstruments.

Financialinstrumentsareclassifiedasliabilitiesorequityinaccordancewiththesubstanceofthecontractualarrangement.Interest,dividends,gainsandlossesrelatingtoafinancialinstrumentclassifiedasliabilityarereportedasexpenseorincome.Distributionstoholdersoffinancialinstrumentsclassifiedasequityarechargeddirectlytoequity.FinancialinstrumentsareoffsetwhentheGrouphasalegallyenforceablerighttooffsetandintendseithertosettleonanetbasis,ortorealisetheassetandsettletheliabilitysimultaneously.

(i) Cash and Cash Equivalents

Cashandcashequivalentscomprisebankbalances,cashinhandandshorttermhighlyliquidassetsthatarereadilyconvertibletocashwithoutsignificantriskofchangesinvaluenetofoutstandingbankoverdrafts.

(ii) Other Investment

Other investment is stated at cost less allowance for diminution in value. A diminution in value isrecognisedasanexpenseintheperiodwhen,intheopinionofthedirectors,thereisapermanentdeclineinvalueofsuchinvestment.

(iii) Receivables

Receivablesarecarriedatanticipatedrealisablevalue.Baddebtsarewrittenoffintheperiodinwhichtheyareidentified.Anestimateismadefordoubtfuldebtsbasedonareviewofalloutstandingamountsatthebalancesheetdate.

(iv) Payables

Payablesarestatedatthefairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived.

(v) Equity Instruments

Ordinarysharesareclassifiedasequityinthebalancesheet.Costsdirectlyattributabletotheissuanceofnewequitysharesaretakentoequityasadeductionfromtheproceeds.

Dividendsonordinarysharesareaccountedforasanappropriationofretainedprofitsintheperiodinwhichtheyareapproved.

Notes to the Financial Statements (Cont’d)

- �0th September, 2007

�0WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

2. ACCOUNTING POLICIES (CONT’D)

i. Income Tax

Incometaxontheprofitorlossfortheyearcomprisescurrentanddeferredtax.Currenttaxistheexpectedamountofincometaxespayableinrespectofthetaxableprofitfortheyearandismeasuredusingthetaxratesthathavebeenenactedatthebalancesheetdate.

Deferredtaxisprovidedfor,usingtheliabilitymethod,ontemporarydifferencesatthebalancesheetdatebetween the tax bases of assets and liabilities and their carrying amounts in the financial statements. Inprinciple,deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferencesanddeferredtaxassetsarerecognisedforalldeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditscanbeutilised.Deferredtaxisnotrecognisedifthetemporarydifferencearisesfromgoodwillornegativegoodwillorfromtheinitialrecognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationandatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit.

Deferredtaxismeasuredatthetaxratesthatareexpectedtoapplyintheperiodwhentheassetisrealisedortheliabilityissettled,basedontaxratesthathavebeenenactedorsubstantivelyenactedatthebalancesheetdate.Deferredtaxisrecognisedintheincomestatement,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity,inwhichcasethedeferredtaxisalsochargedorcrediteddirectlyinequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwillornegativegoodwill.

j. Revenue Recognition

Revenueisrecognisedwhenitisprobablethattheeconomicbenefitsassociatedwiththetransactionwillflowtotheenterpriseandtheamountoftherevenuecanbemeasuredreliably.

(i) Sales of Goods

Revenuefromsalesofgoodsismeasuredatthefairvalueoftheconsiderationreceivableandisrecognisedintheincomestatementwhenthesignificantrisksandrewardsofownershiphavebeentransferredtothecustomers.

(ii) Interest Income

Interestisrecognisedonanaccrualbasisthatreflectstheeffectiveyieldontheasset.

(iii) Dividend Income

Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.

(iv) Rental Income

Rentalincomeisrecognisedonaccrualbasis.

k. Employee Benefits

(i) Short Term Benefits

Wages,salaries,bonusesandallowancesarerecognisedasexpensesintheyearinwhichtheassociatedservicesarerenderedbyemployeesoftheCompany.Shorttermaccumulatingcompensatedabsencessuchaspaidannualleavearerecognisedwhenservicesarerenderedbyemployeesthatincreasetheirentitlementtofuturecompensatedabsences,andshorttermnon-accumulatingcompensatedabsencessuchassickleavearerecognisedwhentheabsencesoccur.

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Notes to the Financial Statements (Cont’d)

- �0th September, 2007

2. ACCOUNTING POLICIES (CONT’D)

k. Employee Benefits (cont’d)

(ii) Defined Contribution Plans

ObligationsforcontributionstodefinedcontributionplanssuchastheEmployeesProvidentFund(“E.P.F”)arerecognisedasanexpenseintheincomestatementasincurred.

(iii) Share-Based Compensation Benefits

TheCompanyoperatesanequitysettled,share-basedcompensationplani.e.theESOSsince14thJuly,2006,whereESOSoptionsareissuedtoeligibledirectorsandemployees.

Thefairvalueofemployees’servicesrenderedinexchangeforthegrantoftheshareoptionsisrecognisedasanexpenseoverthevestingperiod.Thetotalamounttobeexpensedintheincomestatementoverthevestingperiodisdeterminedbyreferencetothefairvalueofeachshareoptiongrantedatthegrantdateandthenumberofshareoptionsvestedbyvestingdate,withacorrespondingincreaseinequity(optionreserve).Ateachbalancesheetdate,theGroupwillreviseitsestimatesofthenumberofshareoptionsthatareexpectedtobecomeexercisable.Theoptionreservesinrespectofoptionswhichhavebeenlapsedaretransferredtoretainedearnings.

Theproceedsreceivednetofanydirectlyattributabletransactioncostsarecreditedtosharecapitalandsharepremiumwhentheoptionsareexercised.

l. Critical Judgments Made in Applying Accounting Policies

Inthepreparationofthefinancialstatements,managementhasbeenrequiredtomakejudgments,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedinthefinancialstatementsintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.

Intheprocessofapplyingtheaccountingpoliciesasdescribedabove,managementisoftheviewthattherearenoinstancesofapplicationofjudgmentswhichareexpectedtohavesignificanteffectontheamountsrecognisedinthefinancialstatements.

Notes to the Financial Statements (Cont’d)

- �0th September, 2007

�2WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

3. PROPERTY, PLANT & EQUIPMENT

As at Disposal/ As at 01.10.06 Addition Retirement 30.09.07 RM RM RM RM

Group

2007

COSTFactorybuildings 9,171,373 883,011 – 10,054,384Electricalinstallation 1,236,220 489,208 – 1,725,428Firefightinginstallation 420,793 60,517 – 481,310Furniture&fittings 26,108 152,413 – 178,521Motorvehicles 1,249,361 94,454 (36,440) 1,307,375Officeequipment 111,807 100,003 – 211,810Plant&machinery 12,369,094 3,626,462 – 15,995,556

24,584,756 5,406,068 (36,440) 29,954,384

As at Charge for Disposal/ As at 01.10.06 the year Retirement 30.09.07 RM RM RM RM

ACCUMULATED DEPRECIATIONFactorybuildings 32,089 192,181 – 224,270Electricalinstallation 10,710 171,929 – 182,639Firefightinginstallation 1,899 46,301 – 48,200Furniture&fittings 3,565 28,270 – 31,835Motorvehicles 136,145 311,337 (36,439) 411,043Officeequipment 7,989 35,746 – 43,735Plant&machinery 563,713 2,009,966 – 2,573,679

756,110 2,795,730 (36,439) 3,515,401

As at 30.09.07 RM

NET BOOK VALUEFactorybuildings 9,830,114Electricalinstallation 1,542,789Firefightinginstallation 433,110Furniture&fittings 146,686Motorvehicles 896,332Officeequipment 168,075Plant&machinery 13,421,877

26,438,983

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Notes to the Financial Statements (Cont’d)

- �0th September, 2007

3. PROPERTY, PLANT & EQUIPMENT (CONT’D)

Acquisition As at of Subsidiary Disposal/ As at 23.08.05 Company Addition Retirement 30.09.06 RM RM RM RM RM

Group

2006 (Restated) COSTFactorybuildings – 4,323,966 4,847,407 – 9,171,373Electricalinstallation – 244,220 992,000 – 1,236,220Firefightinginstallation – 79,608 341,185 – 420,793Furniture&fittings – 23,367 2,741 – 26,108Motorvehicles – 916,428 332,933 – 1,249,361Officeequipment – 56,199 55,608 – 111,807Plant&machinery – 4,832,332 7,536,762 – 12,369,094

– 10,476,120 14,108,636 – 24,584,756

As at Charge for Disposal/ As at 23.08.05 the period Retirement 30.09.06 RM RM RM RM

ACCUMULATED DEPRECIATIONFactorybuildings – 32,089 – 32,089Electricalinstallation – 10,710 – 10,710Firefightinginstallation – 1,899 – 1,899Furniture&fittings – 3,565 – 3,565Motorvehicles – 136,145 – 136,145Officeequipment – 7,989 – 7,989Plant&machinery – 563,713 – 563,713

– 756,110 – 756,110

As at 30.09.06 RM

NET BOOK VALUEFactorybuildings 9,139,284Electricalinstallation 1,225,510Firefightinginstallation 418,894Furniture&fittings 22,543Motorvehicles 1,113,216Officeequipment 103,818Plant&machinery 11,805,381

23,828,646

CertainfactorybuildingoftheGroupwithnetbookvalueofRM3,192,170(2006:RM3,309,094)hasbeenpledgedassecuritytofinancialinstitutionforbankingfacilities.

Notes to the Financial Statements (Cont’d)

- �0th September, 2007

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

3. PROPERTY, PLANT & EQUIPMENT (CONT’D)

Thedepreciationwaschargedtothefollowings:

01.10.06 to 23.08.05 to 30.09.07 30.09.06 RM RM (Restated)

Factoryoverhead 2,420,377 608,411Administrativeexpenses 375,353 147,699

2,795,730 756,110

4. PREPAID LEASE PAYMENTS FOR LAND

Group 30.09.07 30.09.06 RM RM

Cost -Asatbeginningofyear/period 2,395,483 –-Acquisitionofsubsidiarycompany – 1,120,898-Additionduringtheyear/period – 1,274,585

-Asatendofyear/period 2,395,483 2,395,483

Accumulated amortisation-Asatbeginningofyear/period 23,006 –-Amortisationchargedduringtheyear/period 47,476 23,006

-Asatendofyear/period 70,482 23,006

Carrying amount 2,325,001 2,372,477

CertainleaseholdlandoftheGroupwithcarryingamountofRM839,047(2006:RM856,197)hasbeenpledgedassecuritytofinancialinstitutionforbankingfacilitiesgrantedtotheGroup.

5. INVESTMENT IN SUBSIDIARY COMPANY

Company 2007 2006 RM RM

Unquotedshares,atcost 32,550,803 32,550,803

Thesubsidiarycompanyis:

Country of Effective incorporation Principal activity equity interest 2007 2006

WellcallHose(M)Sdn.Bhd. Malaysia Manufacturingofrubberhose 100% 100% andrelatedproducts

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Notes to the Financial Statements (Cont’d)

- �0th September, 2007

6. OTHER INVESTMENT

Group 2007 2006 RM RM

UnquotedsharesinMalaysia,atcost 10,000 10,000

7. INVENTORIES

Group 2007 2006 RM RM

Rawmaterials 6,968,369 5,787,508Work-in-progress 1,108,139 1,090,657Inventoriesintransit 888,776 371,626Finishedgoods 3,156,318 1,524,797

12,121,602 8,774,588

8. TRADE AND OTHER RECEIVABLES

Group Company 2007 2006 2007 2006 RM RM RM RM

Tradereceivables 5,847,890 3,583,373 – –Otherreceivables 1,785,856 372,422 29,851 –Deposits 12,500 49,236 – –Prepayments – 4,550 – –

7,646,246 4,009,581 29,851 –

Localtradereceivables 1,907,035 615,630 Foreigntradereceivables 3,940,855 2,967,743 5,847,890 3,583,373

TheGroup’snormaltradecredittermsrangefrom30to120days(2006:30to120days).

9. AMOUNT DUE FROM SUBSIDIARY COMPANY

Thisbalanceisunsecured,interestfreeandhasnofixedtermofrepayment.

Notes to the Financial Statements (Cont’d)

- �0th September, 2007

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

10. DEPOSITS WITH LICENSED BANKS

Group Company 2007 2006 2007 2006 RM RM RM RM

Fixeddeposits 17,992,791 17,492,791 7,500,000 –Shorttermdeposits 4,500,000 1,967,800 2,500,000 600,000

22,492,791 19,460,591 10,000,000 600,000

Depositswithlicensedbankscompriseoffixeddepositsandshorttermdeposits.ThematurityofthefixeddepositsandshorttermdepositsoftheGroupandoftheCompanyasattheendofthefinancialyear/periodisfrom1to352daysand2to5days(2006:1to352daysand2to5days),respectively.

11. SHARE CAPITAL

Company 2007 2006 RM RM

Authorised:

Numberofordinaryshares Atbeginningofyear/periodatRM0.50/RM1each 100,000,000 100,000 SharesplitintoRM0.50each – 100,000 Createdduringtheyear/periodatRM0.50each – 99,800,000

Atendofyear/periodatRM0.50each 100,000,000 100,000,000

Ordinaryshares Atbeginningofyear/periodatRM0.50/RM1each 50,000,000 100,000 Createdduringtheyear/periodatRM0.50each – 49,900,000

Atendofyear/periodatRM0.50each 50,000,000 50,000,000

Issuedandfullypaid:

Numberofordinaryshares Atbeginningofyear/periodatRM0.50/RM1each 82,200,010 2 SharesplitintoRM0.50each – 2 Issuedduringtheyear/periodatRM0.50each 3,092,000 82,200,006

Atendofyear/periodatRM0.50each 85,292,010 82,200,010

Ordinaryshares Atbeginningofyear/periodatRM0.50/RM1each 41,100,005 2 Issuedduringtheyear/periodatRM0.50each 1,546,000 41,100,003

Atendofyear/periodatRM0.50each 42,646,005 41,100,005

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Notes to the Financial Statements (Cont’d)

- �0th September, 2007

11. SHARE CAPITAL (CONT’D)

ESOSoptions:

ThedetailsofESOSoptionsovertheordinarysharesoftheCompanygrantedareasfollows:

2007

Subscription Date Exercisable price At Forfeited/ At granted period (sen/share) 01.10.06 Granted Exercised Lapsed 30.09.07 14.07.06 14.07.06to 13.07.16 100 7,320,000 – (3,092,000) (698,000) 3,530,00009.02.07 09.02.07to 13.07.16 283 – 200,000 – – 200,000

7,320,000 200,000 (3,092,000) (698,000) 3,730,000

2006

Subscription Date Exercisable price At Forfeited/ At granted period (sen/share) 01.10.06 Granted Exercised Lapsed 30.09.07

14.07.06 14.07.06to 13.07.16 100 7,320,000 – – – 7,320,000

2007 2006 NumberofESOSoptionsvestedasatbalancesheetdate 952,000 3,722,000

12. RESERVES

Group Company 2007 2006 2007 2006 RM RM RM RM (Restated) (Restated)

Optionreserve 240,563 1,151,252 240,563 1,151,252Retainedprofit/(Accumulatedloss) 13,311,676 1,613,610 13,279,181 (1,021,960)Reserveonconsolidation – 3,268,068 – –

13,552,239 6,032,930 13,519,744 129,292

Notes to the Financial Statements (Cont’d)

- �0th September, 2007

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

13. DEFERRED TAXATION

Group 2007 2006 RM RM

Atbeginningofyear/period 433,000 –Acquisitionofsubsidiarycompany – 74,000 Transferredfromincomestatement -Beforeacquisitionofsubsidiarycompany – 217,142-Afteracquisitionofsubsidiarycompany 45,909 141,858

Atendofyear/period 478,909 433,000

Thenetdeferredtaxliabilitiesisinrespectof thefollowingtemporarydifferences: -Property,plant&equipment 478,909 433,000

14. TRADE AND OTHER PAYABLES

Group Company 30.09.07 30.09.06 30.09.07 30.09.06 RM RM RM RM

Tradepayables 3,845,000 3,153,437 – –Otherpayables 1,941,729 3,194,712 140,361 740,168Accruals 1,527,230 1,240,861 2,320 2,730

7,313,959 7,589,010 142,681 742,898

Localtradepayables 3,408,720 2,392,592 Foreigntradepayables 436,280 760,845 3,845,000 3,153,437

ThenormaltradecredittermsgrantedtotheGrouprangefrom30to60days(2006:30to60days).

15. OTHER OPERATING INCOME

Group Company 01.10.06 to 23.08.05 to 01.10.06 to 23.08.05 to 30.09.07 30.09.06 30.09.07 30.09.06 RM RM RM RM

Gainondisposalofproperty, plant&equipment 9,999 – – –Interestincome -Deposits 589,063 279,103 51,881 –-Repo 15,156 14,716 2,763 245-Other – 19,895 – 19,895Rentalincome 800 – – –Unrealisedgainonforeignexchange 562,702 8,934 – –Others 18,707 2,485 96 –

1,196,427 325,133 54,740 20,140

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Notes to the Financial Statements (Cont’d)

- �0th September, 2007

16. PROFIT BEFORE TAXATION

Group Company 01.10.06 to 23.08.05 to 01.10.06 to 23.08.05 to 30.09.07 30.09.06 30.09.07 30.09.06 RM RM RM RM (Restated) (Restated)

Profitbeforetaxationis arrivedataftercharging: Amortisationofprepaid leasepayments 47,476 23,006 – – Auditors’remuneration 19,320 10,112 2,320 2,320 Depreciationofproperty, plant&equipment 2,795,730 756,110 – – Directors’remuneration -Fees -DirectorsoftheCompany 240,000 115,000 120,000 60,000 -Otheremoluments -DirectorsoftheCompany 1,784,312 704,343 – – -Directorsofsubsidiarycompany 117,000 397,084 – – Financecosts -Bankcharges,commission &commitment 246,363 93,070 – – -Bankoverdraftinterest – 445 – – Preliminaryexpenses – 2,500 – 2,500 Rentalofhostel 600 7,260 – – Rentalofofficeequipment 3,600 1,650 – – Staffcosts -Salaries,wages&others 6,253,039 2,270,098 – – -E.P.F. 249,627 90,826 – – -Socso 38,151 12,734 – – -Share-basedcompensation 279,422 1,151,252 279,422 1,151,252

ThetotalemployeesoftheGroupandoftheCompany(includingdirectors)asatendofthefinancialyear/periodamountedto398and5(2006:372and9)respectively.

17. TAXATION

Group Company 01.10.06 to 23.08.05 to 01.10.06 to 23.08.05 to 30.09.07 30.09.06 30.09.07 30.09.06 RM RM RM RM

Currentyear’s/period’sprovision 1,376,190 360,729 – –Underprovisioninpriorperiod 2,198 – – –Deferredtaxation(Note13) 45,909 141,858 – –

1,424,297 502,587 – –

Notes to the Financial Statements (Cont’d)

- �0th September, 2007

�0WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

17. TAXATION (CONT’D)

% % % % Applicabletaxrate 27 28 27 28Taxeffectof: -Exemptdividendincome – – (27) (28)-Incomeexemptedunderpioneerstatus (19) (20) – –

Averageeffectivetaxrate 8 8 – –

SubjecttoagreementwiththeInlandRevenueBoard,theCompanyhasthefollowingbalances:

2007 2006 RM RM Taxexemptaccount 2,724,000 199,700

TheCompanyhastaxexemptaccounttofrankthepaymentoftaxexemptdividendsamountingtoRM2,724,000(2006:RMNil)fromitsretainedprofit.

18. PROFIT FOR THE YEAR/PERIOD

Thecompleteproformaresultsof theGroup for thefinancialperiodended30thSeptember,2006aresetoutasfollows:

Pre-acquisition Pre-acquisition Post-acquisition Proforma total 23.08.05 to 01.10.05 to 17.04.06 to 23.08.05 to 30.09.05 16.04.06 30.09.06 30.09.06 RM RM RM RM (Restated) (Restated)

Revenue 6,702,160 34,976,635 32,445,879 74,124,674Costofsales (4,552,242) (24,505,017) (22,991,346) (52,048,605)

Grossprofit 2,149,918 10,471,618 9,454,533 22,076,069

Otheroperatingincome 41,426 237,491 325,133 604,050Administrativeexpenses (456,998) (2,498,149) (3,063,289) (6,018,436)Selling&distributionexpenses (268,006) (1,194,454) (1,506,365) (2,968,825)

Profitsfromoperations 1,466,340 7,016,506 5,210,012 13,692,858Financecosts (20,972) (96,026) (93,515) (210,513)

Profitbeforetaxation 1,445,368 6,920,480 5,116,497 13,482,345Taxation (320,256) (652,412) (502,587) (1,475,255)

Profitfortheperiod 1,125,112 6,268,068 4,613,910 12,007,090

TheacquisitionofWellcallHose(M)Sdn.Bhd.wascompletedon17thApril,2006.

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Notes to the Financial Statements (Cont’d)

- �0th September, 2007

19. EARNINGS PER SHARE

a. Basic Earnings Per Share

BasicearningspershareiscalculatedbydividingprofitattributabletoequityholdersbytheweightedaverageamountofordinarysharesofRM0.50eachissuedduringthefinancialyear/period.

01.10.06 to 23.08.05 to 30.09.07 30.09.06 RM RM (Restated)

Profitfortheyear/periodattributedtoequity holdersoftheCompany(RM) 15,206,099 4,613,910

Numberofordinarysharesinissueatthebeginning ofyear/period 82,200,010 2Effectofsharesissuedduringtheyear/period 1,799,208 30,249,423

Weightedaveragenumberofsharesinissue 83,999,218 30,249,425

Basicearningspershare(sen) 18.10 15.25

b. Diluted Earnings Per Share

DilutedearningspershareiscalculatedbydividingprofitattributedtoequityholdersbytheadjustedweightedaveragenumberofordinarysharesofRM0.50eachinissueandissuableduringthefinancialyear/period.

01.10.06 to 23.08.05 to 30.09.07 30.09.06 RM RM (Restated)

Profitfortheyear/periodattributedtoequity holdersoftheCompany(RM) 15,206,099 4,613,910

Numberofordinarysharesinissueatthebeginning ofyear/period 82,200,010 2Effectofsharesissuedduringtheyear/period 1,799,208 30,249,423EffectofESOSoptions 2,353,122 343,467

Adjustedweightedaveragenumberofsharesin issueandissuable 86,352,340 30,592,892

Dilutedearningspershare(sen) 17.61 15.08

Notes to the Financial Statements (Cont’d)

- �0th September, 2007

�2WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

20. DIVIDENDS

01.10.06 to 30.09.07 23.08.05 to 30.09.06 Net dividend Net dividend per share Amount per share Amount Sen RM Sen RM

Interimtaxexemptdividendpaid – – 3.65 3,000,300Firstinterimtaxexemptdividendpaid 3.60 3,024,792 – –Secondinterimtaxexemptdividendpaid 4.40 3,751,309 – –

TheCompanydeclaredandpaidtheinterimtaxexemptdividendofamountingtoRM3,024,792andRM3,751,309inrespectofthecurrentfinancialyearended30thSeptember,2007on15thMarch,2007and28thSeptember,2007respectively.

On22ndNovember,2007,thedirectorsdeclaredandapprovedathirdinterimtaxexemptdividendof1.50senpershareinrespectofthefinancialyearended30thSeptember,2007.

21. FINANCIAL INSTRUMENTS

a. Financial Risks

(i) Interest Rate Risk

Theinterestrateriskthatfinancial instruments’valueswillfluctuateasaresultofchangesinmarketinterestrates,andtheinterestratesonclassesoffinancialassetsasatfinancialyearend,areasfollows:

2007 2006 Carrying Interest Carrying Interest amount rate amount rate RM % RM %

Group

FinancialAssets-Depositswithlicensedbanks 22,492,791 2.70 - 4.00 19,460,591 2.70-4.00

Company

FinancialAssets-Depositswithlicensedbanks 10,000,000 2.30 - 3.46 600,000 2.30

(ii) Credit Risk

Themaximumcreditriskassociatedwithrecognisedfinancialassetsisthecarryingamountshowninthebalancesheet.

TheGrouphasnosignificantconcentrationofcreditriskthatmayarisefromexposurestosingledebtorortogroupofdebtors.

Asat30thSeptember,2007, theGrouphadnosignificantcredit riskassociatedwith itsexposuretopotentialcounterpartyfailuretosettleoutstandingforeigncurrencytransactions.

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Notes to the Financial Statements (Cont’d)

- �0th September, 2007

21. FINANCIAL INSTRUMENTS

b. Fair Values

ThefairvaluesoffinancialassetsandfinancialliabilitieswhicharenotcarriedatfairvalueonthebalancesheetsoftheGroupandoftheCompanyarepresentedasfollows:

2007 2006 Carrying Carrying amount Fair value amount Fair value RM RM RM RM

Group

FinancialAssets-Otherinvestment -Unquotedshares 10,000 (1) 10,000 (1)

Company

FinancialAssets-Amountduefrom subsidiarycompany 23,639,625 (2) 15,296,422 (2)

(1) It is not practical to estimate the fair value of the non-current unquoted shares because of the lack of quoted market prices and the inability to estimate fair value without incurring excessive costs.

(2) It is not practical to estimate the fair value of amount due from subsidiary company due principally to the lack of fixed repayment term entered into by the parties involved and without incurring excessive costs. However, the Company does not anticipate the carrying amount recorded at the balance sheet date to be significantly different from the value that would eventually be received.

Thefollowingmethodsandassumptionswereusedtoestimatethefairvalueateachclassoffinancialinstrumentsforwhichitispracticabletoestimatethevalue:

(i) CashandCashEquivalents,TradeandOtherReceivables/Payables

Thecarryingamountsapproximatefairvaluesduetotheshortmaturityyearsoftheseinstruments.

(ii) OtherFinancialAssetsandLiabilities

ThefairvalueofotherfinancialassetsandliabilitiesoftheGroupandoftheCompanyisdeemedtobeequaltotheircarryingvalueunlessstatedotherwiseintherelevantnotestothefinancialstatements.

22. SIGNIFICANT RELATED PARTY TRANSACTION

Company 01.10.06 to 23.08.05 to 30.09.07 30.09.06 RM RM

Dividendincomefromsubsidiarycompany 21,530,000 3,200,000

Notes to the Financial Statements (Cont’d)

- �0th September, 2007

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

23. SEGMENT INFORMATION

SegmentinformationispresentedinrespectoftheGroup’sbusinessandgeographicalsegments.Theprimaryformat,businesssegments,isbasedontheGroup’smanagementandinternalreportingstructure.

Segmentresults,assetsandliabilitiesincludeitemsdirectlyattributabletoasegmentaswellasthosethatcanbeallocatedonareasonablebasis.Unallocateditemsmainlycompriseinterest-earningassets&revenueandcorporateassets&expenses.

Segmentcapitalexpenditureisthetotalcostincurredduringtheyeartoacquiresegmentassetsthatareexpectedtobeusedformorethanoneyear.

Business Segments

TheGroup’sbusinesssegmentsmainlycomprisethemanufactureandsaleofrubberhoseandrelatedproducts.

BusinesssegmentalinformationhasthereforenotbeenpreparedasalltheGroup’srevenue,operatingprofit,assetsemployed, liabilities,depreciationandamortisation,andnoncashexpensesaremainlyconfinedtoonebusinesssegment.

Geographical Segments

ThemanufacturingandinvestmentholdingsegmentsareoperatedsolelyinMalaysia. Inpresentinginformationonthebasisofgeographicalsegments,segmentrevenueisbasedonthegeographicallocationofcustomerswhilesegmentassetsarebasedonthegeographicallocationofassets.

Revenue from Carrying amount Capital external customers of segment assets expenditure RM’000 RM’000 RM’000

2007

Geographicallocation:

Malaysia 5,445 74,214 5,406MiddleEast 18,749 – –Europe 22,692 – –USA/Canada 14,115 – –Australia/NewZealand 9,424 – –Asia 14,606 – –SouthAmerica 6,361 – –

Total 91,392 74,214 5,406

< ------------ Revenue from external customers ------------ > Pre- Pre- Post- Proforma Carrying acquisition acquisition acquisition total amount of 23.08.05 to 01.10.05 to 17.04.06 to 23.08.05 to segment Capital 30.09.05 16.04.06 30.09.06 30.09.06 assets expenditure RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2006

Geographicallocation:

Malaysia 415 2,801 1,691 4,907 62,508 15,383MiddleEast 960 6,839 5,670 13,469 – –Europe 2,261 8,578 9,099 19,938 – –USA/Canada 1,104 6,756 6,819 14,679 – –Australia/NewZealand 750 3,324 3,403 7,477 – –Asia 798 4,504 3,971 9,273 – –SouthAmerica 414 2,175 1,793 4,382 – –

Total 6,702 34,977 32,446 74,125 62,508 15,383

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Notes to the Financial Statements (Cont’d)

- �0th September, 2007

24. EVENT SUBSEQUENT TO THE FINANCIAL YEAR

Onthe22ndNovember,2007,theCompanyannouncedproposalstoundertakethefollowing:

(i) Proposedbonusissueofupto44,511,005newordinarysharesofRM0.50eachintheCompany(“BonusShares”)forevery2existingordinarysharesheldintheCompany.(“ProposedBonusIssue”);

(ii) ProposedincreaseintheauthorisedsharecapitaloftheCompanyfromRM50,000,000comprises100,000,000ordinarysharestoRM100,000,000comprises200,000,000ordinaryshares.(“ProposedIncreaseinAuthorisedShareCapital”);and

(iii) Proposedtransferofthelistingofandquotationfortheentireissuedandpaid-upsharecapitaloftheCompanyfromtheSecondBoardtotheMainBoardofBursaSecuritiesuponcompletionoftheProposedBonusIssueandProposedIncreaseinAuthorisedShareCapital.

25. CHANGES IN ACCOUNTING POLICIES AND PRIOR YEAR ADJUSTMENT

TheaccountingpoliciesdisclosedinNote2havebeenappliedinpreparingthefinancialstatementsforthefinancialyearended30thSeptember,2007.Theimpactresultingfromchangesinaccountingpoliciesarisingfromtheadoptionofthenew/revisedFRSsaresummarisedbelow:

a. FRS 2 Share-based Payment

ThisFRSrequiresanentitytorecogniseshare-basedpaymenttransactionsinitsfinancialstatements,includingtransactionswithemployeesorotherpartiestobesettledincash,otherassetsorequityinstrumentsoftheentity.

Prior to 1st October, 2006, no compensation expense was recognised in the income statement over thevestingperiodsofthegrantswithacorrespondingincreaseinequity.ThetotalamounttoberecognisedascompensationexpenseisdeterminedbyreferencetothefairvalueoftheshareoptioniscomputedusingtheBlack-ScholesMethod.Ateverybalancesheetdate,theGrouprevisesitsestimatesofthenumberofshareoptionsthatareexpectedtovestbythevestingdate. Anyrevisionof thisestimate is included in incomestatementandacorrespondingadjustmenttoequityovertheremainingvestingperiod.

UnderthetransitionalprovisionsofFRS2,thisFRSmustbeappliedtoshareoptionsthatweregrantedafter31stDecember,2004andhadnotyetvestedon1stJanuary,2006.Theapplicationisretrospectiveandaccordingly,thecomparative amounts as at30thSeptember,2006were restatedand theopeningbalanceof retainedprofitsasat1stOctober,2006hasbeenadjusted.ThefinancialimpacttotheGrouparisingfromthischangeinaccountingpolicyisadecreaseinopeningretainedprofitsofRM1,151,252withacorrespondingincreaseincapitalreserve.

b. FRS 3 Business Combinations

Inprioryears,negativegoodwillwaspresentedasreserveonconsolidation.Itisthedifferencebetweenthecostofinvestmentsandthefairvalueofnetassetsofthesubsidiarycompanyacquired.

Witheffectfrom1stOctober,2006andinaccordancewithFRS3,ifthefairvalueofthenetassetsacquiredinabusinesscombinationexceedstheconsiderationpaid(anamountariseswhichwouldhavebeenknownasnegativegoodwillunderthepreviousaccountingpolicy),theexcessisrecognisedimmediatelyintheincomestatementasitarises.InaccordancewiththetransitionalprovisionsofFRS3,existingnegativegoodwillasat1stOctober,2006ofRM3,268,068isderecognizedwithacorrespondingincreaseinopeningretainedprofits.

Notes to the Financial Statements (Cont’d)

- �0th September, 2007

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

25. CHANGES IN ACCOUNTING POLICIES AND PRIOR YEAR ADJUSTMENT (CONT’D)

c. FRS 117 Leases

Priorto1stOctober,2006,leaseholdlandwasclassifiedunderproperty,plant&equipmentandwasstatedatcostlessaccumulateddepreciationandimpairmentlosses.TheadoptionoftherevisedFRS117hasresultedinaretrospectivechangetotheclassificationofleaseholdland.Theup-frontpaymentsmadefortheleaseholdlandrepresentsprepaidleasepaymentsandareamortisedonastraight-linebasisovertheleaseterm.TheunamortisedamountofleaseholdlandisretainedasthesurrogatecarryingamountofprepaidleasepaymentsasallowedbythetransitionalprovisionsofFRS117.ThisFRShasbeenappliedretrospectivelyandcertaincomparativefiguresasat30thSeptember,2006havebeenrestated.

ThefollowingcomparativefiguresoftheGroupandoftheCompanyhavebeenrestatedfortheeffectsofadoptingtheabovechangesinaccountingpoliciesandtoconformtocurrentyear’spresentation:

As previously Effect of Effect of Effect of As reported FRS 2 FRS 3 FRS 117 restated RM RM RM RM RM

Group

Balance sheet as at 30.09.06

Property,plant& equipment 26,201,123 – – (2,372,477) 23,828,646 Prepaidlease paymentforland – – – 2,372,477 2,372,477

Reserves-Retainedprofit 2,764,862 (1,151,252) 3,268,068 – 4,881,678-Optionreserve – 1,151,252 – – 1,151,252-Reserveon consolidation 3,268,068 – (3,268,068) – –

Income Statement for the financial period ended 30.09.06

-Administrative expenses 1,912,037 1,151,252 – – 3,063,289

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Notes to the Financial Statements (Cont’d)

- �0th September, 2007

25. CHANGES IN ACCOUNTING POLICIES AND PRIOR YEAR ADJUSTMENT (CONT’D)

As previously Effect of As reported FRS 2 restated RM RM RM

Company

Balance sheet as at 30.09.06 Reserves-Retainedprofit/(accumulatedloss) 129,292 (1,151,252) (1,021,960)-Optionreserve – 1,151,252 1,151,252

Income Statement for the financial period ended 30.09.06

-Administrativeexpenses 90,548 1,151,252 1,241,800

26. AUTHORISATION FOR ISSUE

ThefinancialstatementsoftheCompanyforthefinancialyearended30thSeptember,2007wereauthorisedforissueinaccordancewitharesolutionoftheBoardofDirectorson5thDecember,2007.

��WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

Analysis of Shareholdingsas at 7th December, 2007

Authorised share capital : RM50,000,000Issued and paid-up share capital : RM42,646,005Class of shares : OrdinarysharesofRM0.50eachVoting rights : Onevotepershare

DISTRIBUTION OF SHAREHOLDINGS

Size of No. of % of No. of % of Issued Shareholdings Shareholders Shareholders Shares Share Capital

Lessthan100 2 0.17 100 0.00100-1,000 367 30.84 267,200 0.311,000-10,000 595 50.00 2,697,400 3.1610,001-100,000 175 14.70 5,431,200 6.37100,001tolessthan5%ofissuedshares 46 3.87 24,733,972 29.005%andaboveofissuedshares 5 0.42 52,162,138 61.16

Total 1,190 100.00 85,292,010 100.00

SUBSTANTIAL SHAREHOLDERS

Direct Indirect Total Name of Shareholders No. of % of Issued No. of % of Issued No. of % of Issued Shares Held Share Capital Shares Held Share Capital Shares Held Share Capital

LifewiseAllianceSdnBhd 27,342,679 32.06 – – 27,342,679 32.06MaximumPerspectiveSdnBhd 9,765,241 11.45 – – 9,765,241 11.45- 9,765,241 Shares Held through HLG Nominee (Tempatan) Sdn Bhd PTBVenturesSdn.Bhd.(“PTBVentures”) 9,392,781 11.01 – – 9,392,781 11.01YayasanIslamTerengganu 7,829,321 9.18 – – 7,829,321 9.18HuangSha 1,000,000 1.17 27,342,679 32.06 (a) 28,342,679 33.23LeongHonChong 500,000 0.59 27,342,679 32.06 (a) 27,842,679 32.64ChewCheeChek – – 27,342,679 32.06 (a) 27,342,679 32.06DatukNgPengHong@NgPengHay – – 9,765,241 11.45 (b) 9,765,241 11.45TanKangSeng 300,000 0.35 9,765,241 11.45 (b) 10,065,241 11.80PTBBaktiHoldingsSdnBhd(“PTBBakti”) – – 9,392,781 11.01 (c) 9,392,781 11.01PermodalanTerengganuBerhad (“PermodalanTerengganu”) – – 9,392,781 11.01 (d) 9,392,781 11.01LembagaTabungAmanah – – 9,392,781 11.01 (e) 9,392,781 11.01

(a) Deemed interest by virtue of Section 6A of the Companies Act, 1965, through his shareholding in LASB(b) Deemed interest by virtue of Section 6A of the Companies Act, 1965, through his shareholding in MASB(c) Deemed interest by virtue of Section 6A of the Companies Act, 1965, through its shareholding in PTB Ventures(d) Deemed interest by virtue of Section 6A of the Companies Act, 1965, through its shareholding in PTB Bakti(e) Deemed interest by virtue of Section 6A of the Companies Act, 1965, through its shareholding in Permodalan Terengganu

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DIRECTORS’ SHAREHOLDINGS

Direct Indirect Total Name of Directors No. of % of Issued No. of % of Issued No. of % of Issued Shares Held Share Capital Shares Held Share Capital Shares Held Share Capital

DatukNgPengHong@NgPengHay* – – 9,765,241 (a) 11.45 9,765,241 11.45HuangSha* 1,000,000 1.17 27,372,679 (c) 32.09 28,372,679 33.27LeongHonChong* 500,000 0.59 27,342,679 (b) 32.06 27,842,679 32.64ChewCheeChek* – – 27,342,679 (b) 32.06 27,342,679 32.06TanKangSeng* 300,000 0.35 9,765,241 (a) 11.45 10,065,241 11.80YBDato’HajiMohtarbinNong – – – – – –MatZaidBinIbrahim (Alternate Director to YB Dato’ Haji Mohtar bin Nong) – – – – – –RazmiBinAlias – – – – – –MohdKhasanBinAhmad – – – – – –YangChowYaw,Alan – – – – – –

(a) Deemed interest by virtue of Section 6A of the Companies Act, 1965, through his shareholding in MASB(b) Deemed interest by virtue of Section 6A of the Companies Act, 1965, through his shareholding in LASB(c ) Includes deemed interest in 27,342,679 Shares by virtue of Section 6A of the Act, through his shareholding in LASB and deemed interest in 30,000 Shares

by virtue of Section 134(12)(c) of the Act through the shareholdings of his children in the Company

* By virtue of their interest in shares of the Company, the Directors are also deemed to have an interest in all the shares held by the Company in the subsidiary company to the extent that the Company has an interest

Analysis of Shareholdings (Cont’d)

as at 7th December, 2007

70WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

THIRTY (30) LARGEST SHAREHOLDERS AS AT 7 DECEMBER 2007

Name of Shareholders No. of Shares %

1 LIFEWISEALLIANCESDN.BHD. 20,832,517 24.422 HLGNOMINEE(TEMPATAN)SDNBHD 9,765,241 11.45 PLEDGED SECURITIES ACCOUNT FOR MAXIMUM PERSPECTIVE SDN BHD (CCTS)3 PTBVENTURESSDN.BHD. 9,392,781 11.014 YAYASANISLAMTERENGGANU 7,829,321 9.185 LIFEWISEALLIANCESDN.BHD. 4,342,278 5.096 HSBCNOMINEES(ASING)SDNBHD 3,000,000 3.52 EXEMPT AN FOR THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED (HBFS-B CLT 500)7 CIMSECNOMINEES(ASING)SDNBHD 2,200,000 2.58 ING ASIA PRIVATE BANK LTD FOR CLEVELAND MANAGEMENT LIMITED8 LIFEWISEALLIANCESDN.BHD. 2,167,884 2.549 CITIGROUPNOMINEES(ASING)SDNBHD 2,139,800 2.51 EXEMPT AN FOR AMERICAN INTERNATIONAL ASSURANCE COMPANY LIMITED10 AMANAHRAYANOMINEES(TEMPATAN)SDNBHD 1,699,800 1.99 PUBLIC ISLAMIC OPPORTUNITIES FUND11 RHBCAPITALNOMINEES(TEMPATAN)SDNBHD 1,435,400 1.68 PLEDGED SECURITIES ACCOUNT FOR TING SIEW PIN (CEB)12 HUANGSHA 1,000,000 1.1713 HLGNOMINEE(TEMPATAN)SDNBHD 1,000,000 1.17 PLEDGED SECURITIES ACCOUNT FOR CHO KIM WING (CCTS)14 AMANAHRAYANOMINEES(TEMPATAN)SDNBHD 880,000 1.03 PB ISLAMIC ASIA STRATEGIC SECTOR FUND15 AMMBNOMINEES(TEMPATAN)SDNBHD 610,700 0.72 AMTRUSTEE BERHAD FOR HLG PENNY STOCK FUND (5/4-3)16 RHBCAPITALNOMINEES(TEMPATAN)SDNBHD 578,000 0.68 PLEDGED SECURITIES ACCOUNT FOR SUSY DING (CEB)17 HSBCNOMINEES(TEMPATAN)SDNBHD 500,000 0.59 HSBC (M) TRUSTEE BHD FOR HWANG-DBS SELECT SMALL CAPS FUND (4579)18 CIMSECNOMINEES(ASING)SDNBHD 500,000 0.59 ING ASIA PRIVATE BANK LTD FOR OCEANNA VICTORY LTD19 LEONGHONCHONG 500,000 0.5920 CHOYSWEEHEONG 360,000 0.4221 LOOIWOOMIN 350,000 0.4122 HSBCNOMINEES(TEMPATAN)SDNBHD 347,500 0.41 HSBC (M) TRUSTEE BHD FOR HWANG-DBS DANA IZDIHAR (4207)23 CHENGSHUNU 344,600 0.4024 HLGNOMINEE(TEMPATAN)SDNBHD 340,000 0.40 PLEDGED SECURITIES ACCOUNT FOR TEO LIA ENG (CCTS)25 HLGNOMINEE(TEMPATAN)SDNBHD 300,000 0.35 PLEDGED SECURITIES ACCOUNT FOR TAN KANG SENG (CCTS)26 CIMSECNOMINEES(ASING)SDNBHD 300,000 0.35 ING ASIA PRIVATE BANK LTD FOR FORTUNE GREAT CAPITAL LTD27 AIBBNOMINEES(TEMPATAN)SDNBHD 299,600 0.35 PLEDGED SECURITIES ACCOUNT FOR WONG YEE HUI28 LEECHEANSEONG 295,500 0.3529 LEEKOKYUEN 279,000 0.3330 UNIVERSALTRUSTEE(MALAYSIA)BERHAD 253,900 0.30 SBB EMERGING COMPANIES GROWTH FUND

Analysis of Shareholdings (Cont’d)

as at 7th December, 2007

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Summary of Landed Properties and Buildings

Net book value as at Registered Title No./location Age of Land Built-up 30 September owner building Existing Usage area area Tenure 2007 (years) (sq. ft) (sq. ft) (RM)

Wellcall PT8290,JalanJohan2/5 11 Industriallanderected 217,600 150,000 leasehold 4,469,732Hose(M) KawasanPerindustrian withablockof (expiringSdnBhd PengkalanII,FasaII factory/officebuilding on6May 31500Lahat includingacanteen 2056) Ipoh,Perak andworkers’hostel, Heldunder: whichiscurrentlyused HSD48717forP.T.8290 byWHSBforthe intheMukimof purposeofcarryingout SungaiTerap,District manufacturingactivities Kinta,StateofPerak

Wellcall PT8300,JalanJohan2/5 1 Industriallanderected 286,973 170,000 leasehold 7,877,510Hose(M) KawasanPerindustrian withablockoffactory, (expiringSdnBhd PengkalanII,FasaII acanteenandworkers’ on6May 31500Lahat hostel,forthepurpose 2056) Ipoh,Perak ofcarryingout Heldunder: manufacturingactivities HS(D)48727PTNo.8300 intheMukim SungaiTerap,Districtof Kinta,StateofPerak

72WELLCALL HOLDINGS BERHAD (Co. No. 707346-W) ANNUAL REPORT 2007

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN THATtheSecondAnnualGeneralMeeting(“AGM”)ofWellcall Holdings Berhad(707346-W)(“theCompany”)willbeheldatLangkawiRoom,BukitJalilGolf&CountryResort,Jalan3/155B,BukitJalil,57000KualaLumpuronMonday,4February2008,at10.30a.m.forthefollowingpurposes:-

AS ORDINARY BUSINESS

1. To consider and receive the Audited Financial Statements together with the Reports of theDirectorsandAuditorsthereonforthefinancialyearended30September2007.

2. ToapproveDirectors’FeesofRM120,000.00forthefinancialyearended30September2007.3. Tore-electthefollowingDirectorswhoretirepursuanttoArticle94oftheCompany’sArticles

ofAssociation:

(a) DatukNgPengHong@NgPengHay(b) Mr.LeongHonChong(c) Mr.ChewCheeChek

4. Tore-appointMessrsOng&WongasAuditorsoftheCompanyandtoauthorisetheBoardofDirectorstofixtheirremuneration.

AS SPECIAL BUSINESS

Toconsiderand,ifthoughtfit,topass,withorwithoutmodifications,thefollowingResolutions:- 5. SPECIAL RESOLUTION – PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION OF

THE COMPANY “THAT the deletions, alterations, modifications, variations or additions to the Articles of

AssociationoftheCompanyascontainedinAppendix“A”beandareherebyapproved.”

6. ORDINARY RESOLUTION – AUTHORITY TO ALLOT SHARES PURSUANT TO SECTION 132D OF THE COMPANIES ACT, 1965

“THAT,subjectalwaystotheCompaniesAct,1965,theArticlesofAssociationoftheCompanyandtheapprovalsoftherelevantgovernment/regulatoryauthorities,theDirectorsbeandtheyareherebyauthorised,pursuanttoSection132DoftheCompaniesAct,1965toallotandissuesharesintheCompanyatanytimeuntiltheconclusionofthenextAnnualGeneralMeetinganduponsuchtermsandconditionsandforsuchpurposesastheDirectorsmay,intheirabsolutediscretion,deemfitprovidedthattheaggregatenumberofsharestobeissueddoesnotexceed10percentumoftheissuedsharecapitaloftheCompanyforthetimebeing.”

OTHER ORDINARY BUSINESS

7. Totransactanyotherbusinessofwhichduenoticeshallhavebeengiven.

ByOrderoftheBoardCHIN WOON LI (F) (MAICSA 7008636)WONG SHAN MAY (F) (LS0008582)CompanySecretaries

Dated:9January2008KualaLumpur

(Resolution 1)

(Resolution 2)

(Resolution 3)(Resolution 4)(Resolution 5)

(Resolution 6)

(Resolution 7)

(Resolution 8)

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NOTES ON APPOINTMENT OF PROXY

(a) A Member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote in his stead. A proxy may but need not be a Member of the Company. The provisions of Section 149(1)(a) and 149(1)(b) of the Companies Act, 1965 (the Act) shall not apply to the Company.

(b) The instrument appointing a proxy must be deposited at the registered office of the Company at Unit C-6-5, 6th Floor, Block C, Megan Avenue II, No. 12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur not less than forty-eight (48) hours before the time appointed for the meeting or at any adjournment thereof.

(c) A Member shall not be entitled to appoint more than one (1) proxy to attend and vote at the same meeting. The provision of Section 149(1)(c) of the Act shall not apply to the Company.

(d) In the case of a corporate member, the instrument appointing a proxy must be executed under its common seal or under the hand of its attorney.

(e) Where a Member of the Company is an Authorised Nominee as defined under the Securities Industry (Central Depositories) Act 1991, it may appoint one proxy in respect of each Securities Account it holds with shares of the Company standing to the credit of the said Securities Account.

EXPLANATORY NOTE TO SPECIAL BUSINESS:

1. Special Resolution – Resolution 7 – Proposed Amendments to the Articles of Association of the Company

The Proposed Amendments to the Articles of Association of the Company, if passed, will render the Articles of Association of the Company to be in line with the recent amendments to the Listing Requirements of Bursa Malaysia Securities Berhad and any prevailing laws, rules, regulations, orders, guidelines or requirements of the relevant authorities and to further enhance administrative efficiency of the Company. Please refer to Appendix “A” for details of the Proposed Amendments.

2. Ordinary Resolution – Resolution 8 – Authority to Directors to issue and allot shares pursuant to Section 132D of the Companies Act, 1965.

The effect of the resolution under item 6 of the agenda, if passed will empower the Directors to allot and issue new shares up to 10% of the issued capital of the Company for the time being for such purposes as the Directors consider would be in the interest of the Company. This authority will commence from the date of this Annual General Meeting and unless revoked or varied by the Company at a general meeting, will expire at the conclusion of the next Annual General Meeting of the Company.

Notice of Annual General Meeting (Cont’d)

(Thispagehasbeenintentionallyleftblank)

WELLCALL HOLDINGS BERHAD(CompanyNo.707346-W)(IncorporatedinMalaysia)

SECOND ANNUAL GENERAL MEETINGFORM OF PROXY CDS Account No.

No. of share held

*I/We............................................................................................................................................................. (NRICNo.................................................................................) (FULLNAMEINBLOCKLETTERS)

of.......................................................................................................................................................................................................................................................................... (FULLADDRESS)

beingashareholderofWellcallHoldingsBerhad(“Company”),herebyappoint.................................................................................................................

......................................................................................................................................... (NRICNo..................................................................................................................) (FULLNAMEINBLOCKLETTERS)

of......................................................................................................................................................................................................................................................................or (FULLADDRESS)

failing*him/her.......................................................................................................................................... (NRICNo.................................................................................) (FULLNAMEINBLOCKLETTERS)

of........................................................................................................................................................................................... orfailing*him/her,theChairmanofthe (FULLADDRESS)

meetingas*my/ourproxytovotefor*me/usandon*my/ourbehalfattheSecondAnnualGeneralMeetingoftheCompanyandactfor*me/uson*my/ourbehalf,attheSecondAnnualGeneralMeetingoftheCompanytobeheldatLangkawiRoom,BukitJalilGolf&CountryResort,Jalan3/155B,BukitJalil,57000KualaLumpuronMonday,4February2008at10.30a.m.andatanyadjournmentthereof.*My/ourproxyistovoteasindicatedbelow:-

Resolution For Against

1. ORDINARY BUSINESS ToconsiderandreceivetheAuditedFinancialStatementstogetherwiththeReportsof

theDirectorsandAuditorsthereonforthefinancialyearended30September2007.

2. ToapproveDirectors’FeesofRM120,000.00forthefinancialyearended30September2007.

3. Re-electofDirectorretiringpursuanttoArticle94oftheCompany’sArticlesofAssociation-DatukNgPengHong@NgPengHay

4. Re-electofDirectorretiringpursuanttoArticle94oftheCompany’sArticlesofAssociation-Mr.LeongHonChong

5. Re-electofDirectorretiringpursuanttoArticle94oftheCompany’sArticlesofAssociation-Mr.ChewCheeChek

6. Tore-appointMessrsOng&WongasAuditorsoftheCompanyandtoauthorisetheBoardofDirectorstofixtheirremuneration.

7. SPECIAL BUSINESS ProposedAmendmentstotheCompany’sArticlesofAssociation.

8. AuthoritytoallotsharespursuanttoSection132DoftheCompaniesAct,1965.

Please indicate with an “x” in the appropriate space how you wish your votes to be cast. Unless otherwise instructed, the proxy will vote as he thinks fit.

Datedthis.............................. dayof...................................... 2008. .................................................................................................. SignatureofShareholder*Deleteifnotapplicable (IfshareholderisaCorporation, thispartshouldbeexecutedunderseal)

(a) A Member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote in his stead. A proxy may but need not be a Member of the Company. The provisions of Section 149(1)(a) and 149(1)(b) of the Companies Act, 1965 (the Act) shall not apply to the Company.

(b) The instrument appointing a proxy must be deposited at the registered office of the Company at Unit C-6-5, 6th Floor, Block C, Megan Avenue II, No. 12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur not less than forty-eight (48) hours before the time appointed for the meeting or at any adjournment thereof.

(c) A Member shall not be entitled to appoint more than one (1) proxy to attend and vote at the same meeting. The provision of Section 149(1)(c) of the Act shall not apply to the Company.

(d) In the case of a corporate member, the instrument appointing a proxy must be executed under its common seal or under the hand of its attorney.

(e) Where a Member of the Company is an Authorised Nominee as defined under the Securities Industry (Central Depositories) Act 1991, it may appoint one proxy in respect of each Securities Account it holds with shares of the Company standing to the credit of the said Securities Account.

PLEASEFOLDHERE

PLEASEAFFIX

STAMP

PLEASEFOLDHERE

THECOMPANYSECRETARYWELLCALLHOLDINGSBERHAD

UnitC-6-5,6thFloor,BlockCMeganAvenueII

No.12,JalanYapKwanSeng50450KualaLumpur

(707346-W)