TRITECH BERHAD

Statement of Financial Position as at 31 January 2022 (RM' Million)

Assets

Non-current Land 1,950

Office Building 1,700

Factories 550

Machines 250

Equipment 200

Investment in financial asset through reserve 200

Investment in bonds 100

Patents 360

Net deferred tax assets 220

TOTAL 5,530

Current

Inventories 300

Trade receivables 150

Prepayment 2

Marketable securities 8

Bank 10

Total assets 6,000

Liabilities

Non-current Bank loans 300

12% Debentures 80

Current Trade payables 80

Accrued expense 60

Total liabilities 520

Equities Contributed ordinary share capital 12,000

4% Contributed cumulative preference share capital 1,000

Fair value reserve 50

Revaluation reserve 450

Accumulated loss -8,020

Total equities 5,480

Tritech has carried out capital reduction scheme which was duly approved by the court.

Additional info: i. Tritech Berhad has in issue following units of shares:

Ordinary shares 1,000 Preference shares 200

(i) Based on independent valuers assessment, Tritech obtained following values for the respective items:

Items Fair value less cost to sell (RM' Million) Value in use (RM' Million) Land 1,650 2,200

Office Building 1,600 2,000

Factories 640 800

Machines 200 200

Equipment 160 180

Items Market value/Net realisable value/Net written off (RM' Million) Investment in financial asset through reserve 250

Investment in bonds 110

Patents 280

Marketable securities 12

Trade receivables 100

Inventories 150

ii. Ordinary shares price per share is to be reduced by 60%.

iii. Preference shares price per share is to be reduced by 80%.

iv. Accumulated losses and net deferred tax assets are to be written off.

v. There are arrears of RM40 million for preference shares dividends. For the settlement of the arrears, the preference shareholders have agreed to receive 1 ordinary shares at 40% of the initial book value price (i.e. price before capital reduction scheme) of the ordinary shares, for every RM10 arrears.

vi. Tritech has not accounted RM0.598 million contingent liability. The contingent liability materialised and Tritech is obligated to pay 25% of the estimated amount.

vii. Existing ordinary shareholders have agreed to subscribe 3 ordinary shares for every 4 ordinary shares they held at 40% of the initial book value price (i.e. price before capital reduction scheme) of the ordinary shares.

viii. Half of the bank loans and 10% debentures amounts, respectively, are to be settled with the sale of some land at 140% of the lands recoverable amount value.

ix. The reorganisation expenses incurred are RM1.85 million. x. Marketable securities which have been recorded at market value of RM6 million were sold for RM 8 million.

xi. Investment in financial assets through reserve which have been recorded at market value of RM55 million were sold for RM68.2 million.

xii. Investment in bonds which have been recorded at market value of RM26 million were sold for RM30 million.

xiii. Inventories which have been recorded at net realisable value of RM20 million were sold for RM14 million.

xiv. Debtors paid 80% of the trade receivables written off amount.