Chemical Company of Malaysia Berhad Annual Report 2018

Other Disclosures UTILISATION OF PROCEED FROM CORPORATE PROPOSALS (If any) On 13 June 2018, the Company announced the completion of the proposed disposal of its Shah Alam Land with total proceeds of RM190.0 million which had been fully utilised as follows: Actual Utilisation (RM’ million) Partial repayment of bank borrowings 179.0 Defrayment of estimated expenses in relation to the Proposed Disposal 11.0 TOTAL 190.0 On 29 June 2018, the Company announced the completion of the proposed disposal of its 8.39% equity interest in PanGen Biotech Inc with total proceeds of RM59.2 million which had been fully utilised towards partial repayment of bank borrowings. AUDIT AND NON-AUDIT FEES FOR SERVICES RENDERED TO THE LISTED ISSUER OR ITS SUBSIDIARIES FOR THE FINANCIAL YEAR During the year ended 31 December 2018, the following amount have been paid or payable to the auditors of the Company and Group for work performed: Audit Work (RM) Non-Audit Work (RM) Company level 75,000 40,000 Group level 368,000 40,000 MATERIAL CONTRACTS INVOLVING INTERESTS OF DIRECTORS, CHIEF EXECUTIVE OFFICER WHO IS NOT A DIRECTOR OR MAJOR SHAREHOLDER There was no other material contract involving the interests of directors, Chief Executive Officer who is not a director or major shareholder entered into by the CCM Group during the two (2) years immediately preceding the date of this Annual Report, other than contracts entered into in the ordinary course of business: (a) Debt Settlement Agreement (“DSA”) dated 11 August 2017 entered into between CCM and CCM Marketing Sdn Bhd (“CCMM”), a wholly owned subsidiary of CCM. Upon the fulfillment of all the conditions precedent of the DSA, the transfer of 204,665,784 CCM Duopharma Biotech Berhad (“Duopharma”) shares from CCMM to CCM arising from the DSA pursuant to the Internal Reorganisation exercise was completed on 25 September 2017 (b) Sale of Shares Agreement dated 19 September 2017 entered into by CCM with the following parties, in relation to the Proposed Acquisitions of: (i) 10% equity interest in CCM Chemicals Sdn Bhd from Lanjut Setia Sdn Bhd (“Proposed Acquisition 1”); and (ii) 10% equity interest in CCM Chemicals Sdn Bhd from Permodalan Nasional Berhad (“Proposed Acquisition 2”) for a total purchase consideration of RM40,000,000. Save for the Interested Directors namely Dato’ Hajah Normala binti Abdul Samad, Dato’ Azmi bin Mohd Ali, Dato’ Seri Ir. Dr. Zaini bin Ujang, and Datin Paduka Kartini binti Hj Abd Manaf who are directors nominated by Permodalan Nasional Berhad (“PNB”) and PNB as the major shareholder of CCM, none of the directors or major shareholders of CCM or any persons connected to them have any interest, direct or indirect, in the Proposed Acquisition 2. The Proposed Acquisitions were completed on 24 November 2017. As a result, CCM Chemicals Sdn Bhd is now a wholly- owned subsidiary of the Company. (c) Term Financing-i Commodity Murabahah of RM11.5 million and Trade Financing-i-Facilities of RM5.0 million entered into between CCM Polymers Sdn Bhd (“CCM Polymers”) , a wholly owned subsidiary of CCM with OCBC Al-Amin Bank Berhad (“OCBC”) on 19 March 2018 to partly finance for the purchase of CCM Polymers’ double-storey office cum factory and an annexed single-storey factory at Taman Industri Selaman, Seksyen 10, Bandar Baru Bangi, Selangor Darul Ehsan together with its fixtures and fittings at a purchase price of RM20.8 million. 92 ANNUAL REPORT 2018