Ni Hsin Berhad Annual Report 2017

Ni Hsin Resources Berhad (653353-W) Annual Report 2017 24 The following information is provided in compliance with the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. 1.1 Utilisation of Proceeds A total of approximately RM4.49 million was raised from the exercise of the Company’s warrants during the financial year. The proceeds were utilised for working capital purposes of the Group. 1.2 Audit Fee and Non-Audit Fees During the financial year, the amount incurred by the Company and by the Group in respect of audit fees and non-audit related fees for services rendered by the external auditors are as follows:- Company (RM’000) Group (RM’000) Audit services 30 148 Non-audit services 26 68 Total 56 216 The non-audit services comprised the following assignments:- a) Review of the Statement of Risk Management and Internal Control b) Tax compliance services c) Review of oversea subsidiaries management accounts for the financial year ended 31 December 2017 d) Review of MFRS 15 and MFRS 9 1.3 Material Contracts There were no material contracts or loans entered into by the Group involving interests of Directors, Chief Executives and major shareholders, either still subsisting at the end of the financial year ended 31 December 2017 or entered into since the end of the previous financial year. 1.4 Employees’ Share Option Scheme (“ESOS”) The Company had at the Extraordinary General Meeting held on 18 May 2016 obtained its shareholders’ approval to establish an ESOS of up to 15% of the issued capital (excluding treasury shares) of the Company for the eligible employees and Directors of the Group at any point of time during the tenure of the ESOS. The ESOS was implemented on 13 June 2016. There were no options granted to any person during the financial year. The ESOS has been terminated on 23 January 2018. 1.5 Revaluation Policy on Landed Properties The Group elected to measure the landed properties using the revaluation model under Malaysian Financial Reporting Standards (MFRS) 116 Property, Plant and Equipment. The Group revalues its property comprising freehold land and factory buildings every five (5) years or at shorter intervals whenever the fair value of the revalued assets is expected to differ materially from their carrying value. The latest revaluation was carried out in December 2016. 1.6 Recurrent Related Party Transactions At the Thirteenth AGM held on 23 June 2017, the Company obtained a shareholders’ mandate to allow the Group to enter into recurrent related party transactions of a revenue or trading nature. All recurrent related party transactions entered into by the Group during the financial year ended 31 December 2017 are disclosed in Note 27 of the financial statements on pages 90 to 91 of this Annual Report. Additional Compliance Information