English

1 March 2019

MSWG'S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS

LONDON BISCUITS BERHAD (“LBB” or “The Company”)

QUALIFICATION IN EXTERNAL AUDITORS' REPORT FOR THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018.

Pursuant to Paragraph 9.19(37) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, LBB made an announcement that Messrs Nexia SSY, the Company's External Auditors, have expressed a qualified opinion in their report.

Basis for Qualified Opinion (Extract of the Auditors’ Report)

“We were appointed as auditors of the Company on 20 December 2018 and therefore did not  observe the counting of physical inventories at the end of the financial year ended 30 September 2018. We were unable to satisfy ourselves by alternative means concerning those inventory quantities held at 30 September 2018, which are stated in the statements of financial position of the Group and the Company at RM26.891 million and RM20.794 million respectively. Since inventories enter into the determination of the financial performance and cash flows, we were unable to determine whether adjustments might have been necessary in respect of the profit for the year reported in the statement of comprehensive income and the net cash flows from operating activities reported in the statement of cash flows.

We wish to draw attention to the following matters where pursuant to ISA 510 concerning Initial Audit Engagements – Opening Balances, we carried out audit procedures to ascertain the existence,

accuracy, presentation and completeness of opening balances and it was determined that certain opening balances contain misstatements that materially affect the current period’s financial statements. Consequently, the items in opening balances as described in detail in Note 39 to the financial statements, were adjusted and restated in the financial statements.

08 March 2019

MESSAGE FROM THE CEO

Why Two-tier Voting Must be Made a Rule Under the Listing Requirements

The Malaysian Code on Corporate Governance (MCCG) was published in April 2017.

It is going to be close to two years now and we still find companies that do not adopt the Two-tier voting process for independent directors beyond the 12-year tenure.

The excuses/reasons are about the same and not convincing:

• It is against the Companies Act 2016 (although the SC has, in an FAQ, explained why the Two-tier voting process does not offend the Companies Act 2016)
• We need to change our Constitution – a change that can be done expeditiously but is often not carried out expeditiously
• Our directors know best (yes, there are such companies and we will share the names of these companies with the regulators)
• We have explained an ‘alternative’ as required by the MCCG – regardless of whether the ‘alternative’ is a suitable substitute in substance for the advocated Practice

22 February 2019

MESSAGE FROM THE CEO

The MAHB - Air Asia Spat

While we all wish that the issues could be settled amicably, this is not the case.

There is now a court case to hear MAHB’s (Malaysian Airports Holdings Berhad’s) suit against Air Asia (AirAsia Group Bhd and Air Asia X Bhd) for RM36.12 million for outstanding airport taxes.

Air Asia has filed a counter-claim against MAHB for over RM400 million.

The fact that things has come to a head, resulting in legal action, only indicates that the parties were not able to iron out a mutually acceptable amicable outcome.

It is perhaps best that the courts, as the final arbiter of contentions, be allowed to deliberate on the suits by both parties (the claim and the counter-claim).

15 February 2019

MSWG'S QUICK TAKE ON-ONGOING CORPORATE DEVELOPMENTS

PERMAJU INDUSTRIES BERHAD ("PERMAJU")

RESIGNATION OF AUDITORS

The Board of Directors of Permaju had on 11 February 2019 announced that the Company had on that day received a notice in writing dated 8 February 2019 (“Notice”) from Messrs. Ernst & Young (“the Auditors”) of their intention to resign as Auditors of the Company.

The reason for the resignation was due to the Company’s wish to appoint another auditor.

Save for the above, the Board of Directors informed that the Company is not aware of any other matters that need to be brought to the attention of the shareholders of Permaju.