MIGHT Financial Report 2020

MIGHT Financial Report 2020

THE NEXT NORMAL: REVITALISE, GROW & RENEW

FINANCIAL REPORT 2020

MALAYSIAN INDUSTRY-GOVERNMENT GROUP FOR HIGH TECHNOLOGY (199401034376 (320059 - P) (A Company Limited By Guarantee And Not Having A Share Capital) (Incorporated in Malaysia)

DIRECTORS’ REPORT AND AUDITED FINANCIAL STATEMENTS

31 DECEMBER 2020

WHAT’S INSIDE

1 - 5 6 6 7 - 10 11 - 12 13 14 15 - 17 18 - 50

DIRECTORS’ REPORT STATEMENT BY DIRECTORS STATUTORY DECLARATION INDEPENDENT AUDITORS’ REPORT STATEMENTS OF FINANCIAL POSITION STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME STATEMENTS OF CHANGES IN MEMBERS’ FUNDS STATEMENTS OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS

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MIGHT Directors’ Report And Audited Financial Statements 2020

MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (320059 - P) (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

DIRECTORS’ REPORT

The Directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Company for the financial year ended 31 December 2020.

PRINCIPAL ACTIVITIES

The principal activities of the Company are to prospect and promote the process of industries development through the strategic application of science and technology, for the benefit of the socio-economic development in Malaysia. The principal activities of the subsidiaries and an associate are set out in Note 5 and Note 6 to the financial statements.

There have been no significant changes in the nature of the Group and of the Company during the financial year.

RESULTS

GROUP

COMPANY

RM

RM

Net surplus for the financial year

31,089,078

8,554,632

There was no material transfers to or from reserves or provisions during the financial year. RESERVES AND PROVISIONS

In accordance with the Memorandum of Association, no dividend is payable to the members of the Company. DIVIDEND

DIRECTORS

The Directors who have held oce during the financial year and up to the date of this report are as follows:

Malaysian Industry - Government Group for High Technology

YBhg. Tan Sri Datuk Dr. Ir. Ahmad Tajuddin bin Ali, FASc (Joint Chairman) YBhg. Datuk Dr. Mohd Yuso bin Sulaiman* (President & Chief Executive Ocer) YBhg. Datuk Khalilur Rahman bin Ebrahim* YBhg. Dato’ P’ng Soo Hong

YBhg. Datuk Khairil Adri bin Adnan YBhg. Datuk Matthew Tee Kai Woon

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MIGHT Directors’ Report And Audited Financial Statements 2020

DIRECTORS (continued)

The Directors who have held oce during the financial year and up to the date of this report are as follows: (continued)

Malaysian Industry - Government Group for High Technology (continued)

YBhg. Tan Sri Dato’ Seri Dr. Cheah Fook Ling YBhg. Dato’ Tan Kia Loke (Alternate to YBhg. Tan Sri Dato’ Seri Dr. Cheah Fook Ling) Dr. Bikramjit Singh Bhangu YBhg. Datuk Ir. (Dr.) Abdul Rahim Hashim YBhg. Datuk Ir. Dr. Siti Hamisah Tapsir YBhg. Dato’ Sri Norazman bin Ayob Mr. Mazuin bin Ismail Mr. Mohamed Firouz bin Asnan Cik Marina binti Md Taib (Alternate to Mr. Mohamed Firouz bin Asnan) YBhg. Datuk Seri Amir Hamzah Azizan YBhg. Datuk Ir. Baharin Din (Alternate to YBhg. Datuk Seri Amir Hamzah Azizan) YBrs. Yuswan bin Yunus YBhg. Tan Sri Dato’ Seri Ahmad Ramli bin Mohd Nor

(Appointed on 5 November 2020) (Resigned 5 November 2020) (Resigned 5 November 2020)

(Resigned 28 February 2021) (Resigned 28 February 2021)

(Resigned on 22 May 2020) (Resigned on 22 May 2020)

*These Directors are also the Directors of the subsidiaries of the Company Subsidiaries of Malaysian Industry - Government Group for High Technology (excluding those who are already listed above)

YBhg. Prof. Datin Paduka Dr. Khatijah binti Mohd Yuso YBhg. Dato’ Dr. Zulkifli bin Mohamed Hashim Dr. Norida binti Abdul Rahman Mr. Rushdi bin Abdul Rahim Mr. Abd Halim bin Mohd Bisri (Alternate Director to Rushdi bin Abdul Rahim) Mr. Abdul Halim bin Abdul Aziz Halina binti Yahya (Alternate Director to Abdul Halim bin Abdul Aziz) Mr. Md Zaini bin Md Zakaria

Mr. Mohd Zakwan bin Mohd Zabidi Dr. Mohd Nor Azman bin Hassan

According to the Register of Directors’ Shareholdings kept by the Company under Section 59 of the Companies Act 2016 in Malaysia, none of the Directors holding oce at the end of the financial year held any beneficial interests in the shares or debentures of the Company and of its related corporations during the financial year. DIRECTORS’ INTERESTS

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MIGHT Directors’ Report And Audited Financial Statements 2020

DIRECTORS’ BENEFITS

Since the end of the previous financial year, none of the Directors have received or become entitled to receive any benefit (other than a benefit included in the aggregate amount of remuneration received or due and receivable by the Directors as shown in the financial statements) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substan- tial financial interest other than the remuneration received by certain Directors as director/executives of its related corporation. There were no arrangements made during and at the end of the financial year, to which the Company is a party, which had the object of enabling the Directors to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.

DIRECTORS’ REMUNERATION The details of Directors’ remuneration are disclosed in Note 21(c) to the financial statements.

There were no indemnity given to or insurance eected for the Directors and ocers of the Group and of the Company during the financial year. INDEMNITY AND INSURANCE FOR DIRECTORS, OFFICERS AND AUDITORS

There were no indemnity given to or insurance eected for the auditors of the Group and of the Company during the financial year.

OTHER STATUTORY INFORMATION REGARDING THE GROUP AND THE COMPANY

(I) AS AT THE END OF THE FINANCIAL YEAR

Before the financial statements of the Group and of the Company were made out, the Directors took reason- able steps:

(a)

to ascertain that proper action had been taken in relation to the writing o of bad debts and the making of provision for doubtful debts and have satisfied themselves that all known bad debts had been written o and that adequate provision had been made for doubtful debts; and

(i)

to ensure that any current assets other than debts, which were unlikely to realise their book values in the ordinary course of business had been written down to their estimated realisable values.

(ii)

In the opinion of the Directors, the results of the operations of the Group and of the Company during the financial year have not been substantially aected by any item, transaction or event of a material and unusual nature. (b)

(II) FROM THE END OF THE FINANCIAL YEAR TO THE DATE OF THIS REPORT

The Directors are not aware of any circumstances: which would render the amounts written o for bad debts or the amounts of the provision for doubtful debts in the financial statements of the Group and of the Company inadequate to any material extent; (i)

(c)

which would render the values attributed to current assets in the financial statements of the Group and of the Company misleading; and

(ii)

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MIGHT Directors’ Report And Audited Financial Statements 2020

OTHER STATUTORY INFORMATION REGARDING THE GROUP AND THE COMPANY (continued)

(iii)

which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

In the opinion of the Directors: (d)

there has not arisen any item, transaction or event of a material and unusual nature likely to aect substantially the results of the operations of the Group and of the Company during the financial year in which this report is made; and no contingent or other liability has become enforceable, or is likely to become enforceable, within the period of twelve (12) months after the end of the financial year which would or may aect the ability of the Group or of the Company to meet their obligations as and when they fall due.

(i)

(ii)

(III) AS AT THE DATE OF THIS REPORT

(e)

There are no charges on the assets of the Group and of the Company which have arisen since the end of the financial year to secure the liabilities of any other person.

There are no contingent liabilities of the Group and of the Company which have arisen since the end of the financial year.

(f)

(g)

The Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements which would render any amount stated in the financial statements of the Group and of the Company misleading.

SIGNIFICANT EVENT DURING THE FINANCIAL YEAR Significant event during the financial year is disclosed in Note 26 to the financial statements.

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MIGHT Directors’ Report And Audited Financial Statements 2020

AUDITORS

The auditors, BDO PLT (LLP0018825-LCA & AF 0206), have expressed their willingness to continue in oce.

The details of auditors’ remuneration of the Company and its subsidiaries for the financial year ended 31 December 2020 are disclosed in Note 18 to the financial statements.

Signed on behalf of the Board in accordance with a resolution of the Directors.

YBhg. Datuk Dr. Mohd Yuso bin Sulaiman Director

YBhg. Tan Sri Datuk Dr. Ir. Ahmad Tajuddin bin Ali, FASc Director

Cyberjaya, Selangor 8 June 2021

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MIGHT Directors’ Report And Audited Financial Statements 2020

MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

STATEMENT BY DIRECTORS

In the opinion of the Directors, the financial statements set out on pages 11 to 50 have been drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards, and the provisions of the Compa- nies Act 2016 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2020 and of the financial performance and cash flows of the Group and of the Company for the financial year then ended.

On behalf of the Board,

YBhg. Datuk Dr. Mohd Yuso bin Sulaiman Director

YBhg. Tan Sri Datuk Dr. Ir. Ahmad Tajuddin bin Ali, FASc Director

Cyberjaya, Selangor 8 June 2021

STATUTORY DECLARATION

I, YBhg. Datuk Dr. Mohd Yuso bin Sulaiman, being the Director primarily responsible for the financial management of Malaysian Industry - Government Group for High Technology, do solemnly and sincerely declare that the financial statements set out on pages 11 to 50 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the above named at Kuala Lumpur this 8 June 2021

) ) ) )

YBhg. Datuk Dr. Mohd Yuso bin Sulaiman

Before me:

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MIGHT Directors’ Report And Audited Financial Statements 2020

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion

We have audited the financial statements of Malaysian Industry - Government Group For High Technology, which comprise the statements of financial position as at 31 December 2020 of the Group and of the Company, and the statements of profit or loss and other comprehensive income, statements of changes in members’ funds and statements of cash flows of the Group and of the Company for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 11 to 50. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the Company as at 31 December 2020 and of their financial performance and their cash flows for the financial year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. Basis for Opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing (“ISAs”). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sucient and appropriate to provide a basis for our opinion. Independence and Other Ethical Responsibilities We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code. Information Other than the Financial Statements and Auditors’ Report Thereon The Directors of the Company are responsible for the other information. The other information comprises the Directors’ Report but does not include the financial statements of the Group and of the Company and our auditors’ report thereon.

Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon.

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MIGHT Directors’ Report And Audited Financial Statements 2020

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (continued) (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

Information Other than the Financial Statements and Auditors’ Report Thereon (continued)

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

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

Responsibilities of Directors for the Financial Statements

The Directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing the ability of the Group and of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group and the Company or to cease operations, or have no realistic alternative but to do so.

Auditors’ Responsibilities for the Audit of the Financial Statements

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

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MIGHT Directors’ Report And Audited Financial Statements 2020

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (continued) (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

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

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

(a)

Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and of the Company’s internal control.

(b)

(c)

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

(d)

Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Group and of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group and the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company, including the disclosures, and whether the financial statements of the Group and of the Company represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial statements of the Group. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

(e)

(f)

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

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MIGHT Directors’ Report And Audited Financial Statements 2020

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (continued) (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

Other Matters

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

Pang Zhi Hao 03450/09/2021 J Chartered Accountant

BDO PLT LLP0018825-LCA & AF: 0206 Chartered Accountants

Kuala Lumpur 8 June 2021

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MIGHT Directors’ Report And Audited Financial Statements 2020

MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (320059 - P) (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2020

GROUP

COMPANY

NOTE

2020 RM

2020 RM

2019 RM

2019 RM

ASSETS NON-CURRENT ASSETS Property, plant and equipment Intangible assets Investments in subsidiaries

6,623,481 11,667

3 4

5,582,835 -

7,069,756 11,667

5,172,593 -

-

-

1,000,000

1,000,000

5

-

Investment in an associate

6 7

-

-

-

-

Other investments

92,655,449

73,382,486

-

284,515

Right-of-use assets

8

1,546,170 1,924,336

259,274

7,919,663

99,784,454

82,388,245

6,431,867

CURRENT ASSETS Trade and other receivables Current tax assets Cash and bank balances

9

1,726,217 -

2,657,013 4,222

1,137,431 -

2,000,604 -

10 11

70,919,154

86,666,011

58,294,249

69,133,593

Short term fund

-

22,221,930

-

-

94,867,301 89,327,246

59,431,680 71,134,197

total assets

194,651,755

171,715,491

65,863,547

79,053,860

MEMBERS’ FUND AND LIABILITIES

MEMBERS’ FUND ATTRIBUTABLE TO THE MEMBERS Members’ contribution trust funds

2,420,000 27,000,000

2,420,000 27,000,000

2,420,000 27,000,000

2,420,000 27,000,000

12 13

Capital contribution

Accumulated operating surplus/(deficit)

87,391,858

56,302,780

(13,181,562)

(21,736,194)

116,811,858 116,811,858

85,722,780 85,722,780

16,238,438 16,238,438

7,683,806 7,683,806

TOTAL MEMBERS’ FUND

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MIGHT Directors’ Report And Audited Financial Statements 2020

MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (320059 - P) (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 (continued)

GROUP

COMPANY

NOTE

2020 RM

2020 RM

2019 RM

2019 RM

MEMBERS’ FUND AND LIABILITIES (continued)

NON-CURRENT LIABILITIES LIABILITIES

14 15 16

25,943,573 -

11,122,584 8,333

173,743 - - 173,743

218,159 - - 218,159

Deferred income

Other payable

1,105,168

1,516,285

Lease liabilities

27,048,741

12,647,202

CURRENT LIABILITIES

Lease liabilities

15 16

504,640 50,268,579

444,518 72,900,991

95,336 49,356,030

72,272 71,079,623

Trade and other payables

Current tax liabilities

17,937

-

-

-

50,791,156

73,345,509

49,451,366

71,151,895

TOTAL LIABILITIES

77,839,897 194,651,755 171,715,491 65,863,547 79,053,860 85,992,711 49,625,109 71,370,054

TOTAL MEMBERS’ FUND AND LIABILITIES

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

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MIGHT Directors’ Report And Audited Financial Statements 2020

MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (320059 - P) (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

GROUP

COMPANY

NOTE

2020 RM

2020 RM

2019 RM

2019 RM

3,587,916 (736,645) 2,851,271

9,509,092 (641,040) 8,868,052 21,376,543 (15,237,064) (6,446,157) 8,561,374 (6,742) - 8,554,632 - 8,554,632

4,467,916 (736,645) 3,731,271

3,156,865 (641,040) 2,515,825 75,011,924 (21,378,500) (24,932,173) 31,217,076 (6,742) - 31,210,334 (121,256) 31,089,078

Revenue Cost of services provided Gross surplus

17

23,285,085 (15,977,069) (12,500,755) (2,341,468) (367) - (2,341,835) - (2,341,835)

55,012,625 (21,893,556) (19,017,330) 17,833,010 (367) 348,687 18,181,330 (114,905) 18,066,425

Other operating income Administrative expenses Other operating expenses Operating surplus/(deficit) Finance costs Share of results in an associate Surplus/(Deficit) before tax Tax expense Net surplus/(deficit) for the financial year Other comprehensive income, net of tax Total comprehensive income/(loss)

18 6 19

- (2,341,835)

- 8,554,632

- 18,066,425

- 31,089,078

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

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MIGHT Directors’ Report And Audited Financial Statements 2020

MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (320059 - P) (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

STATEMENTS OF CHANGES IN MEMBERS’ FUNDS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

TOTAL MEMBERS’ FUNDS

MEMBERS’ CONTRIBUTION

CAPITAL CONTRIBUTION

ACCUMULATED OPERATING SURPLUS/(DEFICIT)

RM

RM

RM

RM

GROUP

67,656,355 18,066,425 - 18,066,425 85,722,780 31,089,078 - 31,089,078 116,811,858 10,025,641 (2,341,835) - (2,341,835) 7,683,806 8,554,632 - 8,554,632 16,238,438

38,236,355 18,066,425 - 18,066,425 56,302,780 31,089,078 - 31,089,078 87,391,858 (19,394,359) (2,341,835) - (2,341,835) (21,736,194) 8,554,632 - 8,554,632 (13,181,562)

27,000,000 - - - 27,000,000 - - - 27,000,000 27,000,000 - - - 27,000,000 - - - 27,000,000

2,420,000 - - - 2,420,000 - - - 2,420,000 2,420,000 - - - 2,420,000 - - - 2,420,000

Balance as at 1 January 2019 Net surplus for the financial year Other comprehensive income, net of tax Total comprehensive income Balance as at 31 December 2019 Net surplus for the financial year Other comprehensive income, net of tax Total comprehensive income Balance as at 31 December 2020 Company Balance as at 1 January 2019 Net deficit for the financial year Other comprehensive income, net of tax Total comprehensive loss Balance as at 31 December 2019 Net surplus for the financial year Other comprehensive income, net of tax Total comprehensive income Balance as at 31 December 2020

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

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MIGHT Directors’ Report And Audited Financial Statements 2020

MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (320059 - P) (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

GROUP

COMPANY

ACTIVITIES CASH FLOWS FROM OPERATING ACTIVITIES Surplus/(Deficit) before tax Adjustments for: Amortisation of intangible assets Bad debts written o: - Other receivables - Deposit - GST receivables Depreciation of property, plant and equipment Depreciation of right-of-use assets Dividend income Government grant recognised as income during the financial year Gain on disposal of property, plant and equipment Gain on disposal of other investments Interest income Interest expense on hire purchase liabilities Interest on lease liabilities Income distribution from short term fund Impairment losses on: - trade receivables - amounts owing by members - other receivables - amount owing by an associate - investment in an associate

2020 RM

2020 RM

2019 RM

2019 RM

NOTE

31,210,334

18,181,330

8,554,632

(2,341,835)

-

-

11,667

35,000

11,667

35,000

4

6,500,000 2,000

6,500,000

- -

- - -

- -

490,420

490,420

-

1,639,942 496,838 (1,360,655) -

1,646,743 403,930 (1,880,000)

1,505,921 85,661 (1,000,000) -

1,517,450 75,966 (1,000,000) -

3 8 17

(14,821,300) -

(17,016,000) -

(66,338,193)

(47,542,260)

14

(24,820) (420,000) (1,208,262) 367 84,407

(25,000)

- -

- -

- -

(2,543,010)

(2,037,763)

(719,393) 367 14,070

18 18 15 18 9 9 9 9 6 7 18

-

-

84,442 (200,901) 126,891 490,200 1,482,172 213,234 16,127,037 (736,000) - - -

13,148

-

-

-

25,000 386,723 5,931,683 - - -

126,891 490,200

- - - - - - - - -

- - - - - - -

Loss in fair value of other investments Trade and other payables written back Share of results in an associate Reversal of impairment losses on other receivables Operating deficit before working capital changes

-

(16,212) (348,687) (62,095)

- -

6 9

(18,805,582)

(18,305,153)

(6,580,523)

(12,959,375)

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MIGHT Directors’ Report And Audited Financial Statements 2020

MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (320059 - P) (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 (continued)

GROUP

COMPANY

ACTIVITIES CASH FLOWS FROM OPERATING ACTIVITIES

2020 RM

2020 RM

2019 RM

2019 RM

NOTE

Operating deficit before working capital changes Changes in working capital: Trade and other receivables Trade and other payables Cash (used in)/from operations Government grant received Tax refunded Tax paid Net cash from/(used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES

(18,805,582)

(18,305,153)

(6,580,523)

(12,959,375)

(1,549,214) (21,904,745) (42,259,541) 66,337,882 4,222 (103,319)

1,126,566 40,263,781 23,085,194 28,275,000 55,797 (142,188)

(263,594) (21,723,593) (28,567,710)

1,104,358 40,027,149 28,172,132

- - -

- - -

- - -

14

- - -

23,979,244

51,273,803

(28,567,710)

28,172,132

Advances to an associate Dividend income received Interest income received Income distribution from short term fund received Net movement intercompany balances Withdrawal of deposits with licensed banks Proceeds from disposal of property, plant and equipment Proceed from disposal of other investments Purchase of property, plant and equipment

(213,234) 1,880,000 1,208,262

-

-

-

-

1,037,748 2,543,010

1,000,000 2,037,763

1,000,000 719,393

200,901

-

-

-

19,256

(19,256)

-

-

-

18,500,000

18,500,000

-

-

-

25,940

25,000

1,600,000

7,420,000

-

-

(153,021) (37,000,000)

(250,484) (25,500,000)

(55,033)

(36,096)

3 7

Purchase of other investments Net cash (used in)/from investing activities

-

-

(31,771,362)

3,070,484

3,001,986

20,189,041

17

MIGHT Directors’ Report And Audited Financial Statements 2020

MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (320059 - P) (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 (continued)

GROUP

COMPANY

2020 RM

2020 RM

2019 RM

2019 RM

CASH FLOWS FROM FINANCING ACTIVITIES

NOTE

(367) 17,016,000 (14,070) (70,050) (33,186) 16,898,327

(367) 17,016,000 (84,407) (367,463) (33,186) 16,530,577

Interest paid Government grant received Repayments of lease interest Repayments of lease liabilities Repayments of hire purchase liabilities Net cash from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the financial year Cash and cash equivalents at end of the financial year Cash and cash equivalents at end of the

-

-

14 15 15

14,821,300 (13,148) (81,772)

14,821,300 (84,442) (469,667)

-

-

14,726,380

14,267,191

65,259,500

70,874,864

(10,839,344)

6,475,073

3,874,093

69,133,593

15,791,147

86,666,011

69,133,593

86,666,011

58,294,249

93,141,084

financial year comprise: Cash and bank balances Short term fund

86,666,011

58,294,249

69,133,593

10 11

70,919,154 22,221,930

-

-

-

69,133,593

58,294,249

86,666,011

93,141,084

18

MIGHT Directors’ Report And Audited Financial Statements 2020

MALAYSIAN INDUSTRY - GOVERNMENT GROUP FOR HIGH TECHNOLOGY (320059 - P) (A COMPANY LIMITED BY GUARANTEE AND NOT HAVING A SHARE CAPITAL) (INCORPORATED IN MALAYSIA)

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020

1.

GENERAL INFORMATION

Malaysian Industry - Government Group For High Technology (“the Company”) is a company limited by guarantee and not having a share capital, incorporated and domiciled in Malaysia.

The registered oce of the Company is located at No. 15B, Tingkat 2, Jalan Tengku Ampuan Zabedah F9/F, Seksyen 9, 40100 Shah Alam, Selangor.

The principal place of business of the Company is located at MIGHT Partnership Hub, Jalan Impact, 63000 Cyberjaya, Selangor Darul Ehsan.

The consolidated financial statements for the financial year ended 31 December 2020 comprise the Company and its subsidiaries and the interests of the Group in an associate. These financial statements are presented in Ringgit Malaysia (“RM”), which is also the Company’s functional currency. The principal activities of the Company are to prospect and promote the process of industries development through the strategic application of science and technology, for the benefit of the socio-economic development in Malaysia. The principal activities of the subsidiaries and an associate are set out in Note 5 and Note 6 to the financial statements. There have been no significant changes in the nature of the Group and of the Company during the financial year.

The financial statements were authorised for issue in accordance with a resolution by the Board of Directors on 8 June 2021.

2.

BASIS OF PREPARATION

The financial statements of the Group and of the Company have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRSs”), International Financial Reporting Standards (“IFRSs”) and the provisions of the Companies Act 2016 in Malaysia. The accounting policies adopted are consistent with those of the previous financial year except for the eects of adoption of new MFRSs during the financial year. The new MFRSs and Amendments to MFRSs adopted during the financial year are disclosed in Note 25(a) to the financial statements. The Group and the Company have early adopted Amendment to MFRS 16 Covid-19-Related Rent Concessions during the financial year and elected to apply the practical expedient to all rent concessions relating to leases with similar characteristics and similar circumstances.

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

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

19

MIGHT Directors’ Report And Audited Financial Statements 2020

3. PROPERTY, PLANT AND EQUIPMENT

DEPRECIATION CHARGE FOR THE FINANCIAL YEAR

BALANCE AS AT 31.12.2020

GROUP

BALANCE AS AT 01.01.2020

ADDITIONS

RECLASSIFICATIONS

2020

RM

RM

RM

RM

RM

Carrying amount Computer equipment Fixtures and fittings

135,811 475,307

60,508 30,125 44,488 17,900 -

- -

(68,325) (76,952)

127,994 428,480

2,049,516 4,202,775 206,347 7,069,756

(270,269) (1,170,566) (53,830) (1,639,942)

1,950,880 2,922,964 152,517 5,582,835

127,145 (127,145)

Oce equipment Oce renovation Motor vehicles

-

- -

153,021

As at 31.12.2020

ACCUMULATED DEPRECIATION

CARRYING AMOUNT

COST

RM

RM

RM

Computer equipment Fixtures and fittings

774,682 707,431

(646,688) (278,951) (755,998) (2,961,275) (604,953) (5,247,865)

127,994 428,480

Office equipment Office renovation Motor vehicles

2,706,878 5,884,239 757,470 10,830,700

1,950,880 2,922,964 152,517 5,582,835

20

MIGHT Directors’ Report And Audited Financial Statements 2020

3. PROPERTY, PLANT AND EQUIPMENT (continued)

DEPRECIATION CHARGE FOR THE FINANCIAL YEAR

BALANCE AS AT 31.12.2019

GROUP

BALANCE AS AT 01.01.2019

ADDITIONS

DISPOSALS

2019

RM

RM

RM

RM

RM

Carrying amount Computer equipment Fixtures and fittings

151,064 546,769 2,276,977 5,216,844 275,481 8,467,135

50,897 5,325 37,022 157,240

(1,120)

(65,030) (76,787)

135,811 475,307

- - - -

(264,483) (1,171,309) (69,134) (1,646,743)

2,049,516 4,202,775 206,347 7,069,756

Oce equipment Oce renovation Motor vehicles

-

250,484

(1,120)

As at 31.12.2019

ACCUMULATED DEPRECIATION

CARRYING AMOUNT

COST

RM

RM

RM

Computer equipment Fixtures and fittings

714,174 677,306

(578,363) (201,999) (485,729) (1,790,709) (551,123) (3,607,923)

135,811 475,307

Office equipment Office renovation Motor vehicles

2,535,245 5,993,484 757,470 10,677,679

2,049,516 4,202,775 206,347 7,069,756

21

MIGHT Directors’ Report And Audited Financial Statements 2020

3. PROPERTY, PLANT AND EQUIPMENT

DEPRECIATION CHARGE FOR THE FINANCIAL YEAR

BALANCE AS AT 31.12.2020

GROUP

BALANCE AS AT 01.01.2020

ADDITIONS

RECLASSIFICATIONS

2020

RM

RM

RM

RM

RM

Carrying amount Computer equipment Fixtures and fittings

70,813 447,734 2,016,411 4,088,523 6,623,481

(44,127) (57,611)

26,686 419,428

- -

-

29,305 25,728 55,033 -

(262,363) (1,141,820) (1,505,921)

1,906,921 2,819,558 5,172,593

127,145 (127,145)

Oce equipment Oce renovation

-

As at 31.12.2020

ACCUMULATED DEPRECIATION

CARRYING AMOUNT

COST

RM

RM

RM

Computer equipment Fixtures and fittings

581,576 610,729

(554,890) (191,301) (744,295) (2,904,541) (300,000) (4,695,027)

26,686 419,428

Office equipment Office renovation Motor vehicles

2,651,216 5,724,099 300,000 9,867,620

1,906,921 2,819,558

-

5,172,593

22

MIGHT Directors’ Report And Audited Financial Statements 2020

3. PROPERTY, PLANT AND EQUIPMENT (continued)

DEPRECIATION CHARGE FOR THE FINANCIAL YEAR

BALANCE AS AT 31.12.2019

COMPANY

BALANCE AS AT 01.01.2019

ADDITIONS

2019

RM

RM

RM

RM

Carrying amount Computer equipment Fixtures and fittings

101,019 500,020 2,276,924 5,216,844 10,028 8,104,835

13,921 5,325 1,850 15,000

(44,127) (57,611)

70,813 447,734 2,016,411 4,088,523

(262,363) (1,143,321) (10,028) (1,517,450)

Oce equipment Oce renovation Motor vehicles

-

-

36,096

6,623,481

As at 31.12.2019

ACCUMULATED DEPRECIATION

CARRYING AMOUNT

COST

RM

RM

RM

Computer equipment Fixtures and fittings

581,576 581,424

(510,763) (133,690) (481,932) (1,762,721) (300,000) (3,189,106)

70,813 447,734

Office equipment Office renovation Motor vehicles

2,498,343 5,851,244 300,000 9,812,587

2,016,411 4,088,523

-

6,623,481

23

MIGHT Directors’ Report And Audited Financial Statements 2020

3. PROPERTY, PLANT AND EQUIPMENT (continued)

(a)

All items of property, plant and equipment are initially measured at cost. After initial recognition, property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated to write down the cost of the assets to their residual values on a straight line basis over their estimated useful lives. The estimated useful life represents common life expectancy applied in the industry within the Group and the Company operate. The principal annual depreciation rates are as follows:

Computer equipment Fixtures and fittings

20% - 50% 10% - 20% 10% - 20% 10% - 20%

Oce equipment Oce renovation Motor vehicles

20%

4. INTANGIBLE ASSETS

AMORTISATION CHARGE FOR THE FINANCIAL YEAR RM

BALANCE AS AT 31 DECEMBER RM

BALANCE AS AT 1 JANUARY RM

Computer software Carrying amount 2020 GROUP AND COMPANY Computer software Carrying amount 2019

11,667

(11,667)

-

46,667

(35,000)

11,667

Intangible assets are initially measured at cost. After initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any.

Computer software that does not form an integral part of the related hardware is treated as intangible assets with finite useful lives and is amortised over its estimated useful life of five (5) years. The estimated useful life represents common life expectancy applied in the industry within the Group and the Company operate.

5. INVESTMENTS IN SUBSIDIARIES

COMPANY

2020 RM 4,000,000 4,000,000 2019 RM

Unquoted equity shares, at cost

Less: Impairment losses

(3,000,000)

(3,000,000)

1,000,000 1,000,000

24

MIGHT Directors’ Report And Audited Financial Statements 2020

5. INVESTMENTS IN SUBSIDIARIES (continued)

Investments in subsidiaries, which are eliminated on consolidation, are stated in the separate financial statements of the Company at cost less accumulated impairment losses.

(a)

All components of non-controlling interests shall be measured at their acquisition-date fair values, unless another measurement basis is required by MFRSs. Subsequent to initial recognition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity.

The recoverable amount of the investments in subsidiaries is assessed by reference to the higher of the fair values less cost to sell and value in use of the subsidiary.

Estimating a value in use requires management to make an estimate of the expected future cashflows to be derived from continuing use of the asset and form its ultimate disposal, expectations about possible variations in the amount, timing of those cash flows, the time value of money, price for inherent uncertainty risk and others relevant factors.

Details of the subsidiaries are as follows: (b)

INTEREST IN EQUITY HELD BY

NAME OF COMPANY

COUNTRY OF INCORPORATION

PRINCIPAL ACTIVITIES

COMPANY

SUBSIDIARY

2020

2019

2020

2019

To promote the creation, growth and expansion of technology-based companies that are globally competitive To invest and nurture start-up and growth stage companies in biotechnology and bio industry

MIGHT Technology Nurturing Sdn. Bhd.

Malaysia

100%

100%

-

-

VentureTECH Sdn. Bhd.

-

Malaysia

100%

100%

-

Subsidiaries of MIGHT Technology Nurturing Sdn. Bhd.

Providing training and education programmes on advanced manufacturing technology

MIGHT-Meteor Advanced Manufacturing Sdn. Bhd

Malaysia

-

-

100% 100%

25

MIGHT Directors’ Report And Audited Financial Statements 2020

6. INVESTMENT IN AN ASSOCIATE

GROUP

2020 RM

2019 RM

Unquoted equity shares, at cost Share of post-acquisition losses

15,100,000 (5,198,362)

15,100,000 (5,198,362)

9,901,638 (9,901,638) -

9,901,638 (9,901,638) -

Less: Impairment losses in investment of an associate

Investment in an associate is measured at cost less impairment losses, if any, and accounted for using the equity method in the consolidated financial statements.

(a)

Management reviews the investment in an associate for impairment when there is an indication of impairment.

The recoverable amount of the investment in an associate is assessed by reference to the higher of the fair values less cost to sell and value in use of the associate.

Estimating a value in use requires management to make an estimate of the expected future cashflows to be derived from continuing use of the asset and from its ultimate disposal, expectations about possible variations in the amount, timing of those cash flows, the time value of money, price for inherent uncertainty risk and others relevant factors.

(b)

Details of the associate is as follows:

INTEREST IN EQUITY HELD BY GROUP

COUNTRY OF INCORPORATION

NAME OF COMPANY

PRINCIPAL ACTIVITIES

2020

2019

Associate of VentureTECH Sdn. Bhd.

Malaysia

40%

40%

MYBiomass Sdn. Bhd.

Developing and pioneering high value green chemicals biorefinery although a coordinated aggregation. The Company has ceased its operations in prior year.

The above investment is accounted for as investment in an associate by virtue of the Group’s ability to exercise significant influence over the financial and operating policies of the investee companies through representation in the Board of Directors of the associate.

The Group’s share of results of an associate is based on the latest available audited financial statements.

26

MIGHT Directors’ Report And Audited Financial Statements 2020

6. INVESTMENT IN AN ASSOCIATE (continued)

Summarised financial information of the associate as at the end of each reporting period is as follows:

(c)

MYBiomass Sdn. Bhd. 2020 RM 2019 RM

Assets and liabilities

Non-current assets Current assets Current liabilities

506,301 162,547 (740,635)

13,457,189 746,535 (1,190,605)

Net (liabilities)/assets

(71,787)

13,013,119

Results

Revenue Loss for the financial year Total comprehensive loss

- (13,084,906) (13,084,906)

13,413 (14,848,848) (14,848,848)

Cash flows used in operating activities Cash flows from/(used in) investing activities

(933,565) 373,160

(483,489) (1,032,161)

Net decrease in cash and cash equivalents

(560,405)

(1,515,650)

(d)

2020 RM 2019 RM The reconciliation of net assets of the associate to the carrying amount of investment in an associate is as follows:

Share of net assets Impairment losses

- -

5,205,247 (5,205,247)

Carrying amount in the statements of financial position

-

-

Share of results of the associate

-

348,687

Share of profit of the associate Share of other comprehensive income of the associate

-

-

Share of total comprehensive loss of the associate

-

348,687

In the previous financial year, the Group recognised an impairment loss of RM5,931,683 in respect of investment in an associate due to declining economic benefits expected from the associate. (e)

27

MIGHT Directors’ Report And Audited Financial Statements 2020

7. OTHER INVESTMENTS

2020 RM

2019 RM

GROUP

Fair value through profit or loss

Equity instruments:

- Unquoted ordinary shares - Unquoted redeemable convertible cumulative preference shares (“RCCPS”)

15,635,593

11,655,873

-

77,019,856

61,726,613

92,655,449

73,382,486

(a) Other investments are classified as financial assets at fair value through profit or loss.

(b)

Unquoted ordinary shares and RCCPS of the Group are categorised as Level 3 in the fair value hierarchy. Fair values of investments in unquoted ordinary shares and RCCPS are estimated based on price to book valuation model and discounted cash flow method. There is no transfer between levels in the hierarchy during the financial year.

(c)

The Group carries unquoted equity shares as financial assets at fair value through profit or loss classified as Level 3 within the fair value hierarchy. The reconciliation is as follows:

FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS

2019 RM

2020 RM

GROUP

At 1 January Additions Disposal Fair value loss recognised in profit or loss

73,382,486 37,000,000 (1,600,000) (16,127,037) - -

- 54,882,486 25,500,000 (7,000,000)

At 31 December

92,655,449

73,382,486