CAREPLUS GROUP BERHAD

(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

Unaudited Condensed Consolidated Statements of Comprehensive Income

INDIVIDUAL QUARTER CUMULATIVE QUARTER

Preceding
Preceding Year Year
Current Year Corresponding Current Year Corresponding
Quarter Quarter To-Date Period

30-Apr-2011 30-Apr-2010 30-Apr-2011 30-Apr-2010

RM'000 RM'000 RM'000 RM'000

Revenue 10,560 N/A 10,560 N/A

Cost of sales (9,479) N/A (9,479) N/A

Gross profit 1,081 N/A 1,081 N/A

Other operating income 494 N/A 494 N/A

Administration expenses (633) N/A (633) N/A

Other expenses (294) N/A (294) N/A

Finance costs (75) N/A (75) N/A

Profit before taxation 573 N/A 573 N/A

Income tax expense (144) N/A (144) N/A

Profit after taxation/

Total comprehensive
income for the financial
period 429 N/A 429 N/A

1|Page
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

Unaudited Condensed Consolidated Statements of Comprehensive Income (Cont’d)

INDIVIDUAL QUARTER CUMULATIVE QUARTER

Preceding Preceding
Year Current Year
Current Year Corresponding Year Corresponding
Quarter Quarter To-Date Period

30-Apr-2011 30-Apr-2010 30-Apr-2011 30-Apr-2010

RM'000 RM'000 RM'000 RM'000

Profit after taxation/

Total comprehensive income
attributable to:

Owners of the Company 429 N/A 429 N/A

Weighted average number of

ordinary shares in issue („000) 210,000 N/A 210,000 N/A

Earnings per share attributable

to owners of the Company:

Basic (sen) 0.20 N/A 0.20 N/A

Diluted (sen) N/A N/A N/A N/A

Notes :
N/A - Not applicable

(a) The Unaudited Condensed Consolidated Statements of Comprehensive Income should be read in
conjunction with the audited consolidated financial statements of Careplus Group Berhad
(“Company”) for the financial period ended 31 January 2011 and the accompanying explanatory
notes in this interim financial report.

(b) No comparative figures for the preceding year‟s corresponding quarter and period are available as
this is the first year that the Company is issuing interim financial report on a consolidated basis,
being announced in compliance with the ACE Market Listing Requirements of Bursa Malaysia
Securities Berhad (“Bursa Securities”) (“Listing Requirements”).
2|Page
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

Unaudited Condensed Consolidated Statements of Financial Position

UNAUDITED AUDITED
As at As at
30-Apr-2011 31-Jan-2011
RM'000 RM'000
ASSETS
Non-current assets
Property, plant and equipment 27,587 20,682
Investment property 252 260
Goodwill on consolidation 205 205

28,044 21,147

Current assets
Inventories 7,025 5,929
Trade receivables 5,710 6,673
Other receivables, deposits and prepayments 908 590
Derivative assets 389 220
Cash and cash equivalents 3,788 6,501
Amount owing by a related party 18 6
Tax refundable 50 50
17,888 19,969

TOTAL ASSETS 45,932 41,116

EQUITY AND LIABILITIES

Equity
Share capital 21,000 21,000
Share premium 9,107 9,107
Merger deficit (12,900) (12,900)
Retained profits 13,589 13,160

Total equity 30,796 30,367

3|Page
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

Unaudited Condensed Consolidated Statements of Financial Position (Cont’d)

UNAUDITED AUDITED
As at As at
30-Apr-2011 31-Jan-2011
RM'000 RM'000

Non-current liabilities
Long-term borrowings 6,368 5,764
Deferred tax liabilities 158 158

6,526 5,922
Current liabilities
Trade payables 2,499 1,898
Other payables and accruals 4,477 1,645
Short-term borrowings 864 385
Provision for taxation 306 332
Bank overdraft 464 567

8,610 4,827

Total liabilities 15,136 10,749

TOTAL EQUITY AND LIABILITIES 45,932 41,116

Net assets per share attributable to

owners of the Company (sen) # 14.7 14.5

Notes :
N/A - Not applicable

# The net assets per share is computed based on 210,000,000 ordinary shares of RM0.10 each.

(a) The Unaudited Condensed Consolidated Statements of Financial Position should be read in
conjunction with the audited consolidated financial statements of the Company for the financial
period ended 31 January 2011 and the accompanying explanatory notes in this interim financial
report.
(b) No comparative figures for the preceding year‟s corresponding quarter and period are available as
this is the first year that the Company is issuing interim financial report on a consolidated basis,
being announced in compliance with the Listing Requirements.

4|Page
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

Unaudited Condensed Consolidated Statements of Cash Flows

Preceding Year
Current Year Corresponding
To-Date Period
30-Apr-2011 30-Apr-2010
RM'000 RM'000
CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 573 N/A

Adjustments for :
Depreciation of investment property 8 N/A
Depreciation of property, plant and equipment 232 N/A
Interest expenses 75 N/A
Fair value gain on derivatives (169) N/A
Interest income (31) N/A
Unrealised gain on foreign exchange (32) N/A

Operating profit before working capital changes 656 N/A

Increase in inventories (1,096) N/A

Decrease in trade and other receivables 677 N/A
Increase in trade and other payables 3,433 N/A
Increase in amount owing by a related party (12) N/A
Cash from operations 3,658 N/A

Interest paid (75) N/A

Income tax paid (170) N/A

Net cash from operating activities 3,413 N/A

5|Page
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

Unaudited Condensed Consolidated Statements of Cash Flows (Cont’d)

Preceding Year
Current Year Corresponding
To-Date Period
30-Apr-2011 30-Apr-2010
RM'000 RM'000
CASH FLOWS FOR INVESTING ACTIVITIES
Interest received 31 N/A
Purchase of property, plant and equipment (7,137) N/A

Net cash for investing activities (7,106) N/A

CASH FLOWS FROM FINANCING ACTIVITIES

Drawdown of export credit refinancing, net 692 N/A
Drawdown of term loan 497 N/A
Repayment of hire purchase obligations (37) N/A
Repayment of term loans (69) N/A

Net cash from financing activities 1,083 N/A

NET DECREASE IN CASH AND CASH EQUIVALENTS (2,610) N/A

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE

FINANCIAL PERIOD 5,934 N/A
CASH AND CASH EQUIVALENTS AT END OF FINANCIAL
PERIOD 3,324 N/A

CASH AND CASH EQUIVALENTS COMPRISE

Fixed deposits with licensed banks 2,000 N/A
Cash and bank balances 1,788 N/A
Bank overdraft (464) N/A

3,324 N/A

Notes :
N/A - Not applicable
(a) The Unaudited Condensed Consolidated Statements of Cash Flow should be read in conjunction
with the audited consolidated financial statements of the Company for the financial period ended 31
January 2011 and the accompanying explanatory notes in this interim financial report.

(b) No comparative figures for the preceding year‟s corresponding quarter and period are available as
this is the first year that the Company is issuing interim financial report on a consolidated basis,
being announced in compliance with the Listing Requirements.

6|Page
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

Unaudited Condensed Consolidated Statements of Changes in Equity

<- Non-distributable Distributable
Share Share Merger Retained
Capital Premium Deficit Profits Total
RM'000 RM'000 RM'000 RM'000 RM'000

Balance at 31/01/2011 21,000 9,107 (12,900) 13,160 30,367

Total comprehensive income for

the financial period - - - 429 429

Balance at 30/04/2011 21,000 9,107 (12,900) 13,589 30,796

Notes :
N/A - Not Applicable

(a) The Unaudited Condensed Consolidated Statements of Changes in Equity should be read in
conjunction with the audited consolidated financial statements of the Company for the financial
period ended 31 January 2011 and the accompanying explanatory notes in this interim financial
report.

(b) No comparative figures for the preceding year‟s corresponding quarter and period are available as
this is the first year that the Company is issuing interim financial report on a consolidated basis,
being announced in compliance with the Listing Requirements.

7|Page
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

A. EXPLANATORY NOTES PURSUANT TO THE FINANCIAL REPORTING STANDARD (“FRS”)

134: INTERIM FINANCIAL REPORTING

1. Basis of Preparation

This interim financial report is prepared in accordance with FRS 134: Interim Financial Reporting
and Appendix 9B of the Listing Requirements. This is the third interim financial report on the
consolidated results for the first quarter financial period ended 30 April 2011 announced by the
Company in compliance with the Listing Requirements. As such, there are no comparative
figures for the preceding years‟ corresponding quarter and period.

The accounting policies and methods of computation adopted by the Company and its
subsidiaries (the “Group”) for this interim financial report are in compliance with the new and
revised FRSs, amendments to FRS and IC Interpretations issued by the Malaysian Accounting
Standards Board (“MASB”).

The interim financial report should be read in conjunction with the audited consolidated financial
statements of the Company for the financial period ended 31 January 2011 and the
accompanying explanatory notes attached to this interim financial report.

2. Adoption of New and Revised Accounting Policies

(a) During the current financial period, the Group has adopted the following new accounting
standards and interpretations (including the consequential amendments):

FRSs and IC Interpretations (including the consequential amendments)

FRS 1 (Revised) First-time Adoption of Financial Reporting Standards

FRS 3 (Revised) Business Combinations
FRS 127 (Revised) Consolidated and Separate Financial Statements
Amendments to FRS 1 (Revised): Limited Exemption from Comparative FRS 7
Disclosures for First-time Adopters
Amendments to FRS 1: Additional Exemptions for First-time Adopters
Amendments to FRS 2: Scope of FRS 2 and FRS 3 (Revised)
Amendments to FRS 2: Group Cash-settled Share-based Payment Transactions
Amendments to FRS 5: Plan to Sell the Controlling Interest in a Subsidiary
Amendments to FRS 7: Improving Disclosures about Financial Instruments
Amendments to FRS 138: Consequential Amendments Arising from FRS 3 (Revised)
Amendments to IC Interpretation 14: Prepayments of a Minimum Funding Requirement
Amendments to IC Interpretation 9: Scope of IC Interpretation 9 and FRS 3 (Revised)
IC Interpretation 4 Determining Whether An Arrangement Contains a Lease
IC Interprétation 12 Service Concession Arrangements
IC Interpretation 16 Hedges of a Net Investment in Foreign Operation
IC Interpretation 17 Distributions of Non-cash Assets to Owners
IC Interpretation 18 Transfers of Assets from Customers
IC Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments
Annual Improvements to FRSs (2010)

8|Page
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

2. Adoption of New and Revised Accounting Policies (Cont’d)

The adoption of the above accounting standards and interpretations (including the
consequential amendments) did not have any material impact on the Group‟s interim
financial report.

(b) The Group has not applied in advance the following accounting standards and
interpretations (including the consequential amendments) that have been issued by the
MASB but are not yet effective for the current financial period:

FRSs and IC Interpretations (including the consequential Effective date

amendments)

FRS 124 (Revised) Related Party Disclosures 1 January 2012

IC Interpretation 15 Agreements for the Construction of Real

1 January 2012
Estate
The above accounting standards and interpretations (including the consequential
amendments) are not relevant to the Group‟s operations.

3. Auditors’ Report on Preceding Annual Financial Statements

The auditors‟ reports for the Company and its subsidiaries preceding annual audited financial
statements for the financial period ended 31 January 2011 were not subject to any qualification.

4. Seasonal or Cyclical Factors

The Group‟s business operations were not significantly affected by any major seasonal or
cyclical factors.

5. Significant Unusual Items

There were no significant unusual items affecting assets, liabilities, equity, net income or cash
flows for the current quarter under review.

6. Material Changes in Estimates

There were no material changes in estimates of amounts reported that have a material effect on
the current quarter under review.

9|Page
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

7. Details of Changes in Debts and Equity Securities

There was no issuance, cancellation, repurchase, resale or repayment of debt and/or equity
securities during the current quarter under review.

8. Dividend

There was no dividend declared and paid during the current quarter under review.

9. Segmental Reporting

3-month ended 30-April-2011

Manufacturing Trading Others Eliminations Group
RM'000 RM'000 RM'000 RM'000 RM'000
Revenue
External sales 5,766 4,794 - - 10,560
Inter-segment sales 4,724 - - (4,724) -

Total 10,490 4,794 - (4,724) 10,560

Results
Segment results 362 325 (70) - 617
Interest income 31
Finance costs (75)
Profit before
taxation 573
Income tax expense (144)
Profit after taxation 429

3-month ended 30-April-2011

Manufacturing Trading Others Eliminations Group
RM'000 RM'000 RM'000 RM'000 RM'000
Assets
Segment assets 39,531 15,390 35,546 (44,585) 45,882
Unallocated assets 50
Total assets 45,932

Liabilities
Segment liabilities 27,225 1,962 8,008 (22,524) 14,671
Unallocated
liabilities 465
Total liabilities 15,136

10 | P a g e
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

9. Segmental Reporting (Cont’d)

Geographical Segments for Revenue

Current Year Current Year
Quarter To-Date
30-Apr-11 30-Apr-11
RM'000 RM'000

Local 2,671 2,671

Export 7,889 7,889

10,560 10,560

10. Valuation of Property, Plant and Equipment

The Group did not carry out any valuation on its property, plant and equipment during the current
quarter under review.

11. Changes of the Composition of the Group

The Company had on 24 February 2011, incorporated a new wholly-owned subsidiary, namely
Careglove Global Sdn Bhd (“Careglove”), with issued and paid-up share capital of RM2
comprising 2 ordinary shares of RM1.00 each, which was subsequently increased to RM100,000
comprising 100,000 ordinary shares of RM1.00 each.
Save as disclosed above, there were no changes in composition of the Group during the current
quarter under review.

12. Contingent Liabilities

The Group does not have any contingent liabilities as at the end of the current quarter.

13. Capital Commitments

Authorised capital expenditure not provided for in the interim financial report as at the end of the
current quarter are as follows:

Current Year
To-Date
30-Apr-11
RM'000
Contracted but not provided for
- Construction of a factory 1,063
- Plant and machinery 8,900
9,963

11 | P a g e
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

14. Events Subsequent to the End of the Interim Reporting Period

Save as disclosed below, there were no other events subsequent to the current financial quarter
ended 30 April 2011 up to the date of this interim financial report which may substantially affect
the results of the operations of the Group:

(a) Careglove, a wholly-owned subsidiary of the Company, had on 2 June 2011 increased its
issued and paid-up share capital from RM2, representing 2 ordinary shares of RM1.00
each to RM100,000, representing 100,000 ordinary shares of RM1.00 each. Careglove is
presently dormant and its intended principal activity is to carry on the business as
manufacturers and dealers in gloves.

(b) On 13 June 2011, the Company announced that the Company has undertaken an internal
restructuring exercise, involving the transfer of the following assets from Rubbercare
Protection Products Sdn Bhd (formerly known as Perusahaan Pelindung Getah (M) Sdn
Bhd) (“Rubbercare”), a wholly-owned subsidiary of the Company, to Careglove:

(i) the plant and machineries installed and to be installed at its new factory located at Lot
17479, Jalan Senawang Tiga, Senawang Industrial Estate, 70450 Seremban, Negeri
Sembilan Darul Khusus at the leasehold industrial land held under PN 1290, Lot No.
17479, Mukim Ampangan, Daerah Seremban, Negeri Sembilan measuring in area of
approximately 37,006 square metres (“Land”) (“Plant and Machineries”) on an “as is”
basis but free from all encumbrances, for an indicative total cash consideration of
RM19,000,000.00, subject to the final determination of the actual costs of the Plant
and Machineries as incurred by Rubbercare, vide a sale and purchase agreement
entered into on 11 June 2011; and

(ii) the Land, together with the buildings and ancillary facilities erected or to be erected
thereon (“Land and Building”) on an “as is where is” basis but free from all charges,
caveats and encumbrances, and with vacant possession, for an indicative total cash
consideration of RM12,000,000.00, subject to the final determination of the actual
purchase and construction costs of the Land and Building as incurred by Rubbercare,
vide a sale and purchase agreement entered into on 13 June 2011.

(c) On 17 June 2011, the Company entered into a conditional joint venture agreement with
Descarpack Descartaveis do Brasil Ltda., a company incorporated under the laws of Brazil
(“Descarpack”) through the equity participation in Careglove for the manufacturing and
marketing of rubber gloves in Brazil and any other countries as may be mutually agreed in
writing from time to time. The proposed joint venture will therefore, carry on with the plans
of Careglove in expanding and operating the new factory located at Lot 17479, Jalan
Senawang Tiga, Senawang Industrial Estate, 70450 Seremban, Negeri Sembilan Darul
Khusus and the installation of plant and machineries.

12 | P a g e
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

15. Related Party Disclosures

(a) Identities of related parties

(i)Entities controlled by certain key management personnel, directors and/or substantial

shareholders; and

(ii) The directors who are the key management personnel.

(b) In addition to balances detailed elsewhere in the financial statements, the Group carried out
the following transactions with its related parties during the period under review:

Current Year-to-Date
30-Apr-2011
RM’000

Transactions with a close member of the family of a director,

Lim Kwee Shyan :
Sales 21
Quality control and packing services expenses 34
Insurance and renewal of road tax services expenses 10
Construction expenses charged 8

Transactions with directors:

Rental paid 18

(c) Key management personnel

Current Year-to-Date
30-Apr-2011
RM’000

Short-term employee benefits 169

16. Cash and Cash Equivalents

Current Year-to-Date
30-Apr-2011
RM’000

Fixed deposits placed with licensed banks 2,000

Cash and bank balances 1,788
Bank overdraft (464)
3,324

13 | P a g e
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

B. ADDITIONAL INFORMATION REQUIRED PURSUANT TO THE LISTING REQUIREMENTS

1. Review of Performance

The Group recorded total revenue and profit before taxation (“PBT”) of approximately RM10.56
million and RM0.57 million, respectively for the three (3)-month financial period ended 30 April
2011.

The Group‟s revenue has decreased by RM0.90 million (or 7.8%) as compared to the preceding
financial quarter. This was mainly due to the high raw material prices and the weakening of the
US dollar which resulted in slower orders from the Group‟s customers. As a result of these, the
Group recorded PBT and PBT margin of approximately RM0.57 million and 5.4% respectively for
the said financial period.

2. Material Changes to the Results of the Preceding Quarter

For the current quarter under review, the Group recorded revenue of approximately RM10.56
million, representing a decrease of approximately RM0.90 million or 7.8% from the revenue of
RM11.46 million during the preceding financial quarter. This was mainly due to the high raw
material prices and the weakening of the US dollar which resulted in slower orders from the
Group‟s customers.

The Group registered PBT of approximately RM0.57 million as compared to a loss before tax of
RM0.36 million in the preceding quarter. Operating expenses has decreased by approximately
RM0.32 million as compared to the preceding financial quarter, which was mainly due to lower
losses in foreign exchange and no listing expenses incurred during this quarter.

3. Prospects

The Group‟s financial performance and prospects are subject to the global demand for gloves,
as well as the price of latex and the movement in foreign exchange rates.

The Group completed the commissioning of two (2) new production lines at the end of June
2011. Barring unforeseen circumstances, the Group expects the commissioning of the next two
(2) production lines by September 2011. These new lines are capable of producing nitrile gloves.
With the increased capacity and product diversification, barring any unforeseen circumstances,
the Group believes it will achieve an acceptable performance in this financial year.

4. Profit Forecast and Profit Guarantee

The Group has not provided any profit forecast or profit guarantee in any public document.

14 | P a g e
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

5. Income Tax Expense

The taxation figures are as follows:

Current Year Current Year

Quarter To-Date
30-Apr-11 30-Apr-11
RM’000 RM’000

Current tax (144) (144)

The effective tax rate of the Group for the current quarter under review is approximately 25%,
which is close to its statutory tax rate.

6. Realised and Unrealised Retained Profits of the Group

Current Year
To-date
30-Apr-11
RM’000
Total retained profits:
Realised 13,506
Unrealised 83
13,589

7. Sale of Unquoted Investments and/or Properties

There were no sales of unquoted investments and/or properties for the current quarter under
review.

8. Purchase and or Disposal of Quoted Securities

There was no purchase or disposal of quoted securities for the current quarter under review.

15 | P a g e
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

9. Status of Corporate Proposal

(a) Utilisation of proceeds

The gross proceeds of RM14.962 million from the public issue of 65,050,000 shares have
been utilised in the following manner:

Intended
Proposed Actual timeframe
utilisation utilisation for Deviation
utilisation
upon
Description (RM’000) (RM’000) listing RM’000 % Explanations

Capital expenditure
2 single-formers 4,750 3,920 Within three 830 17.5 (1)
production lines (3) years
Chilled water supply 500 0 Within three 500 100.0 (1)
(3) years
Compress air supply 300 111 Within three 189 63.0 (1)
(3) years
Waste Water Treatment 500 265 Within three 235 47.0 (1)
(3) years
Other supporting 550 365 Within three 185 34.0 (1)
equipments (3) years
Part financing the 3,500 3,075 Within three 425 12.0 (1)
construction of new (3) years
factory
Total *10,100 7,736

Working capital 3,262 ^3,122 Within one

(1) year - 0.0 -

Estimated listing 1,700 ^1,840 Upon - 0.0 -

expenses completion
of the listing

Total *15,062 12,698

Notes:

* The remaining balance will be funded through internally-generated funds.

^ Listing expenses incurred during the financial period ended 31 January 2011 were higher
than initially proposed. The excess was funded from the amount initially set aside for
working capital.

(1) The proceeds from the public issue will be utilised within the estimated timeframe. The
Group does not expect any material deviation as at the date of this interim financial report.

16 | P a g e
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

9. Status of Corporate Proposal (Cont’d)

(a) Utilisation of proceeds (cont‟d)

As stated in the Company‟s prospectus dated 16 November 2010, the Group had in
December 2009 commenced construction on part of its new factory located at Lot 17479,
Jalan Senawang Tiga, Senawang Industrial Estate, 70450 Seremban, Negeri Sembilan
Darul Khusus on December 2009, which is able to house ten (10) single-former production
lines, a chlorination plant and a double-storey warehouse with cleanroom facilities and
other ancillary facilities. As at the date of this interim financial report, the construction of this
part of the said new factory, with a production floor area of approximately 76,880 square
feet has been fully completed.

(b) Proposed bonus issue of warrants and proposed private placement

The Board of Directors of Careplus (“Board”) had on 28 April 2011 announced that the
Company proposes to undertake the following:

(i) a bonus issue of 105,000,000 warrants (“Warrants”) on the basis of one (1) free
Warrant for every two (2) existing shares held on an entitlement date to be determined
later (“Proposed Bonus Issue of Warrants”); and

(ii) a private placement of up to twenty percent (20%) of the issued and paid-up share
capital of the Company, to investors to be identified (“Proposed Private Placement”)

(c) Proposed internal restructuring

On 13 June 2011, the Company announced that the Company has undertaken an internal
restructuring exercise, involving the transfer of the following assets from Rubbercare to
Careglove:

(i) the Plant and Machineries on an “as is” basis but free from all encumbrances, for an
indicative total cash consideration of RM19,000,000.00, subject to the final
determination of the actual costs of the Plant and Machineries as incurred by
Rubbercare, vide a sale and purchase agreement entered into on 11 June 2011; and

(ii) the Land and Building on an “as is where is” basis but free from all charges, caveats
and encumbrances, and with vacant possession, for an indicative total cash
consideration of RM12,000,000.00, subject to the final determination of the actual
purchase and construction costs of the Land and Building as incurred by Rubbercare,
vide a sale and purchase agreement entered into on 13 June 2011.

(d) Proposed joint venture

The Board had on 17 June 2011 announced that it had entered into a conditional joint
venture agreement with Descarpack, through equity participation in Careglove to
manufacture and market its rubber gloves in Brazil and any other countries as may be
mutually agreed in writing from the Company and Descarpack from time to time.

Save as disclosed above, there were no other corporate proposals announced but not
completed at the latest practicable date which is not earlier than seven (7) days from the
date of issue of this interim financial report.
17 | P a g e
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

10. Borrowings

The Group‟s borrowings as at 30 April 2011 are as follows:

Secured
RM’000
Short-term borrowings
Hire purchase 86
Term loans 86
Export Credit Refinancing (ECR) 692
864
Bank overdraft 464

Long-term borrowings
Hire purchase 84
Term loans 6,284
6,368
7,696
Total

There were no unsecured debts during the current quarter under review.

The Group does not have any foreign borrowings or debt securities as at the date of this report.

11. Off Balance Sheet Financial Instruments

There were no off balance sheet financial instruments as at the date of this report.

12. Derivatives Financial Instruments

As at 30 April 2011, the Group‟s outstanding derivatives were as follows:

Type of Derivatives Contract/Notional Value Fair Value

RM’000 RM’000
Currency forwards
- Less than 1 year 8,931 389

The Group entered into currency forwards to hedge high probable forecast transactions
denominated in foreign currencies, which are expected to occur in the future. The currency
forwards have maturity dates that match the expected occurrence of these transactions.

All derivative financial instruments are executed with creditworthy counter parties with a view to
limit the credit risk exposure of the Group.

18 | P a g e
CAREPLUS GROUP BERHAD
(Company No. 896134-D)

(Incorporated in Malaysia under the Companies Act, 1965)

st
Unaudited Quarterly Financial Report for the 1 Quarter Ended 30 April 2011

13. Material Litigation

There were no material litigations involving the Group as at the date of this report.

14. Dividend

There was no dividend declared and paid during the current quarter under review.

15. Earnings Per Share

(a) Basic

The basic earnings per share is calculated by dividing the profit attributable to owners of
the Company for the financial period by the weighted average number of ordinary shares in
issue during the financial period under review.

Individual Quarter Cumulative Quarter

Preceding Preceding
Year Year
Current Year Corresponding Current Year Corresponding
Quarter Quarter To-Date Period
30-Apr-2011 30-Apr-2010 30-Apr-2011 30-Apr-2010

Total comprehensive 429 N/A 429 N/A

income attributable to
owners of the Company
(RM‟000)

Weighted average 210,000 N/A 210,000 N/A

number of ordinary
shares in issue („000)

Basic earnings per 0.20 N/A 0.20 N/A

share (sen)

(b) Diluted

The Company does not have any convertible shares or convertible financial instruments for
the current quarter under review.

16. Authorisation for issue

The quarterly unaudited financial statements were authorised for issue by the Board in
accordance with a resolution dated 24 June 2011.

19 | P a g e