Reference is made to the Company’s previous announcements made on 21 January 2020 and 31 January 2020 (“the Announcements”) in relation to the trading suspension of ATTA Securities.

The Board of Directors of ATTA wishes to inform the further developments of the above matters as follows:

1.    Business and Financial Position

       a)  The Group’s business operation continues as normal except for one subsidiary, Syarikat Perkilangan Besi Gaya (“SPBG”) where its business operation had completely ceased  to facilitate the ongoing investigations. 

             SPBG contributed 36% of the total revenue of the Group for nine months period ended 31 December 2019 (YE 31 March 2019: 56%).  SPBG is expected to be at a loss position of approximately RM500,000 in the financial year ending 31 March 2020.  As of 31 December 2019, SPBG has recorded a loss of RM136,000. Therefore, the Group’s revenues are expected to drop by 40% for the financial year ending 31 March 2020 based on adverse contribution of SPBG and also other subsidiaries performance. 

             The business conditions of other subsidiaries have become more difficult as some suppliers and customers have adopted a more cautious stand in their dealings, but every effort is being made by the Executive Directors and Management staff to explain to them in order to secure the business deals.

       b)  The Group’s gearing ratio is 1.99% and is able to service the loan facilities from the collection of rentals and there isn’t any default in payment from banks as at todate. 

2.   Seizure on the Motor Vehicles of the Company and its Subsidiaries

       Reference is made to the Company’s announcement made on 31 January 2020 in relation to the seizure on the motor vehicles of the Company and its subsidiaries have been released by way of bond.

       The initial bond of RM150,000 was not approved by the Inspector Officer as the bond amount would need to be revised subject to the revaluation of all motor vehicles.  As such, the said motor vehicles are still in the custody of police until the performance bond is satisfied.

3.    Seizure on Banking Accounts, CDS Accounts and Properties

       There are no further updates.

4.    Charge against Mr. Ooi Chieng Sim

       The High Court has postponed the date for mention to 23 March 2020 pending the completion of the chemist report.

5.    Actions taken by the Board

       The Board of Directors of ATTA has further taken the following measures:

       5.1   To appoint the following:

               5.1.1   an independent expert to conduct a full review of risk management and corporate liability on the Company’s subsidiaries, namely Syarikat Perkilangan Besi Gaya Sdn. Bhd., Progerex Sdn. Bhd and SMPC Industries Sdn. Bhd.

               5.1.2   a legal firm to advice the Board on all civil and criminal matters to protect the Company and their shareholders. 

               An updated announcement will be made upon the finalisation of the abovesaid appointments.

       5.2   To re-designate the following two (2) Non-Executive Directors of the Company with effect from 17 February 2020:

               5.2.1   Mr. Tan Kim Hee from Non-Independent Non-Executive Director to Executive Director.

               5.2.2   Mr. Chiok Kian Chau from Independent Non-Executive Director to Executive Director.

      5.3   To appoint Mr. Chiok Kian Chau as Executive Chairman in place of Mr. Ooi Chieng Sim of which his directorship has been suspended by the Board on 31 January 2020.

      The above arrangement would allow:

• Mr. Tan Kim Hee also a major shareholder of the Group holding 21.80% of the equity shares to take stewardship of the Group’s direction and spearhead the running of the Group’s operations.

• Mr. Chiok Kian Chau with financial planning and audit background will be able to give a check and balance on the Group’s operations and discharging his responsibilities to protect the shareholders’ interest.                                                                                                                                                                                                                                                                                 After the re-designation, the composition of the Board comprises eight (8) members, of whom five (5) are Executive Directors and three (3) are Independent Non-Executive Directors are as follows:

• No.	Name of Directors	Designation
  1.	Chiok Kian Chau	Executive Chairman
  2.	Tan Kim Hee	Executive Director
  3.	Ng Chin Nam	Executive Director
  4.	Chow Choon Hoong	Executive Director
  5.	Ooi Chieng Sim	Executive Director (Suspended on 31 January 2020)
  6.	Sudesh A/L K. V. Sankaran	Independent Non-Executive Director
  7.	Dato’ Dennis Chuah	Independent Non-Executive Director
  8.	Loh Yee Sing	Independent Non-Executive Director

  
  

  5.4   To change its financial year end from 31 March 2020 to 30 June 2020 and 30 June in every subsequent year.
  

  The Directors and Senior Managements had been giving their time and effort to give full cooperation to the Investigation Police Officer with regards to the offence investigation and therefore, priority has been given to the relevant authorities promptly to fulfil their requested documents and requirements.  On the other hand, the Board and senior management team have been placing their focus on plans and strategy to rescue and remedy the current position of the Group. 
  

  Hence, Board foresee a tight schedule in finalising accounts for the financial year ending 31 March 2020.  In view of this, the Board had resolved and concluded to extend the financial year end from 12 months to 15 months, i.e. 31 March 2020 to 30 June 2020.   
  

  ATTA will make further announcement(s) as and when there are any material developments in relation to the above matter.
  

  This announcement is dated 18 February 2020.