UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934

 

For the month of September 2023

 

Commission File No. 001-41678

 

VCI Global Limited

(Name of registrant)

 

B03-C-8 & 10, Menara 3A, KL Eco City, No.3 Jalan Bangsar, 59200
Kuala Lumpur, Malaysia

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F  ☒   Form 40-F  ☐

 

 

 

 

 

 

Forward Looking Statements

 

This Report on Form 6-K includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Our actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, our expectations with respect to future performance and anticipated financial impacts. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside our control and are difficult to predict. Factors that may cause such differences include, but are not limited to risks and uncertainties incorporated by reference under “Risk Factors” in the Registrant’s Form 20-F (001-41678) filed with the Securities and Exchange Commission (the “SEC”) on May 15, 2023 (the “Form 20-F”) and in the Registrant’s other filings with the SEC. The Registrant cautions that the foregoing factors are not exclusive. The Registrant cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Registrant does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

 

1

 

 

EXHIBIT INDEX

 

Exhibit    Description
99.1   Operating and Financial Review of VCI Global Limited and its subsidiaries for the six months ended June 30, 2023 and 2022
99.2   Condensed Consolidated Interim Financial Statements (Unaudited) of VCI Global Limited and its subsidiaries as of June 30, 2023 and December 31, 2022 and for the six months ended June 30, 2023 and 2022.
101.INS   Inline XBRL Instance Document.
101.SCH   Inline XBRL Taxonomy Extension Schema Document.
101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB   Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104   Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

 

2

 

 

SIGNATURES

 

Pursuant to the requirements of the U.S. Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: October 4, 2023 VCI Global Limited
   
  By: /s/ Victor Hoo 
  Name:  Victor Hoo
  Title: Director, Executive Chairman and
Chief Executive Officer

 

 

3

 

 

Exhibit 99.1

 

OPERATING AND FINANCIAL REVIEW OF VCI GLOBAL LIMITED AND ITS SUBSIDIARIES.

 

The following discussion and analysis is intended to help investors understand the significant factors affecting our results of operations, financial condition, liquidity and capital resources. You should read this discussion together with our unaudited financial statements and related notes in Exhibit 99.2 of this Form 6-K. Also read our audited consolidated financial statements and related notes included in our Annual Report on Form 20-F for the fiscal year ended December 31, 2022 (“2022 Form 20-F”). The following discussion and analysis contain forward-looking statements that reflect our plans, estimates and beliefs. Actual results could differ materially from those discussed in the forward-looking statements. See “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the 2022 Form 20-F.

 

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of our unaudited consolidated financial statements as of June 30, 2023 and for the six months ended June 30, 2023 and June 30, 2022.

 

Our interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.

 

Overview

 

VCI Global Limited (the “Company”, and together with our subsidiaries, “we” or the “Group”) is a multi-disciplinary consulting group with key advisory practices in the areas of business and technology. Each of our segments and practices is staffed with consultants recognized for their wealth of knowledge and established track records of delivering impact. With our core group of experts experienced in corporate finance, capital markets, legal, and investor relations, we illuminate our clients’ paths to success by helping them foresee impending challenges and identify business opportunities. We leverage our in-depth expertise to assist clients in creating value by providing profitable business ideas, customizing bold strategic options, offering sector intelligence, and equipping clients with cost-saving solutions for lasting growth.

 

Since our inception in 2013, we have been delivering our services to companies ranging from small-medium enterprises and government-linked agencies to publicly traded conglomerates across a broad array of industries. Our business operates solely in Malaysia, with clients predominantly from Malaysia, and some engagements with clients from China, Singapore and the United States.

 

A.Operating Results

 

Results of Operations

 

The results of operations presented below should be reviewed in conjunction with our unaudited interim condensed consolidated financial statements and related notes in Exhibit 99.2 of this Form 6-K. The following table sets forth our results of operations for the periods indicated:

 

  

Six months ended

June 30,

2023

  

Six months ended

June 30,

2022

 
   RM   USD   RM 
Revenue   44,463,195    9,525,310    15,931,394 
Revenue – related party   -    -    5,443,238 
Total revenue   44,463,195    9,525,310    21,374,632 
Other income   1,054,906    225,992    109,802 
Fair value adjustment on financial assets measured at fair value through profit and loss   -    -    1,679,842 
Cost of services   (6,049,234)   (1,295,922)   (2,216,929)
Depreciation   (274,425)   (58,790)   (11,203)
Directors’ fees   (5,435,664)   (1,164,477)   (141,000)
Employee benefits expenses   (7,770,225)   (1,664,608)   (4,807,371)
Impairment allowance on trade receivables   -    -    (183,546)
Rental expenses   (149,951)   (32,124)   (156,673)
Legal and professional fees   (1,473,823)   (315,736)   (117,377)
Finance cost   (15,875)   (3,401)   (8,685)
Other operating expenses   (3,668,557)   (785,912)   (1,474,666)
Profit before income tax   20,680,347    4,430,332    14,046,826 
Income tax   (626,143)   (134,138)   (283,648)
Profit for the period   20,054,204    4,296,194    13,763,178 
Other comprehensive income (loss):               
Exchange differences on translating foreign operations   1,272,834    272,678    - 
Fair value adjustment on financial assets measured at fair value through other comprehensive income   -    -    (4,199,770)
Total comprehensive income for the period   21,327,038    4,568,872    9,563,408 
                
Profit attributable to:               
Equity owners of the Company   21,203,387    4,542,382    13,568,156 
Non-controlling interests   (1,149,183)   (246,188)   195,022 
Total   20,054,204    4,296,194    13,763,178 
                
Total comprehensive income attributable to:               
Equity owners of the Company   22,476,221    4,815,060    9,368,386 
Non-controlling interests   (1,149,183)   (246,188)   195,022 
Total   21,327,038    4,568,872    9,563,408 
                
Earnings per share - Basic and diluted   0.55    0.12    0.40 

 

 

 

Revenue

 

Our revenue is driven in part by our ability to offer market-leading service offerings to add value to clients. We derive our revenues substantially from our business and technology consultancy service offerings and solutions that we deliver to our clients. Each contract has different terms based on the scope, deliverables, timing and complexity of the engagement.

 

Depending on the terms of the service engagement contract, our revenues are derived from a few principal types of billing arrangements as explained below:

 

Business Consultancy

 

Retainer Engagements

 

In our retainer based engagements, the client is billed according to the predetermined fees and billing period. The retainer fee is determined based on amongst others, the value, complexity and scale of the engagement. Throughout the period of the retainer engagement, we provide clients with holistic business or technology consulting services. It is the client’s expectation in these engagements that the pre-established fee will not be exceeded except in mutually agreed upon circumstances.

 

Performance-based Fees

 

In performance-based billing arrangements, we agree to a pre-established fee in exchange for a predetermined set of professional services. Generally, the client agrees to pay a fixed fee over the specified services engaged. We set the fees based on our estimates of the complexity, scale, costs and the time it would take to complete the engagements.

 

Success Fees

 

Similar to performance-based fees, success fees engagements generally tie fees to the attainment of contractually defined objectives or upon the closing of a project. We agree to a pre-established fee in exchange for a predetermined milestone. Success fee revenues may cause variations in our revenues and operating results due to the timing of achieving the criteria. Generally, success fee is either attained in the form of cash or shares in our clients’ companies. The latter opens the door for our clients and us to capitalize on forward-looking opportunities, to grow and to thrive together.

 

2

 

 

Technology Consultancy

 

Software is key to business efficiency as the right software solutions make a world of difference in the day-to-day business operations. Our aim is to optimise businesses’ operations with the right, cost-effective software solutions that improve business efficiency and productivity while reducing operating costs and saving time.

 

Consulting Fees

 

Clients are billed according to a predetermined consulting fee for a period of engagement. The consulting fee is determined based on amongst others the value, complexity, applicable programme, required IT professionals and skills, and the scale of the engagement. Throughout the engagement, we provide clients holistic technology consulting services. The right software solutions add value to business practices, and we achieve that by identifying and understanding the kinds of software most suited to the size, needs, and requirements of the client’s business and industry.

 

Development Fees

 

In our Technology segment, certain clients are billed based on the proprietary software developed in accordance with the requirements of the clients. We provide bespoke and customized programmes, software, and website development tailored to the needs of the clients’ business in facilitating the adoption and integration of technology to boost their business performance.

 

White Label Technology Fees

 

Our revenue under the technology segment also stems from providing white label technology whereby we purchase ready-made licensed software products and thereafter execute our rebranding and develop white label software that meets our clients’ needs. Apart from that, according to our clients’ requirements, we provide customization services on ready-made software.

 

Software as a Service (SaaS)

 

Moving forward, we have plans to expand our revenue model by adding SaaS via the development of a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.

 

3

 

 

The table below sets forth details of our revenue for the periods indicated.

 

  

Six months ended

June 30,

2023

  

Six months ended

June 30,

2022

   Change 
   RM   USD   RM   % 
Business strategy consultancy fee   20,789,179    4,453,647    11,359,388    83.01 
Technology Development, Solutions and Consultancy   19,733,018    4,227,387    9,657,906    104.32 
Interest income   1,118,641    239,645    -    100 
Others   2,822,357    604,631    357,338    689.83 
Total revenue   44,463,195    9,525,310    21,374,632    108.02 

 

Our revenue increased by RM23.1 million, or 108.02%, to RM44.5 million ($9.5 million) for the six months ended June 30, 2023 compared to RM21.4 million ($4.8 million) for the six months ended June 30, 2022.

 

The revenue from business strategy consultancy fee increased by RM9.4 million, or 83.01%, to RM20.8 million ($4.5 million) for the six months ended June 30, 2023 compared to RM11.4 million ($2.6 million) for the six months ended June 30, 2022.

 

Technology development, solutions and consultancy revenue increased by RM10.1 million, or 104.32% to RM19.7 million ($4.2 million) for the six months ended June 30, 2023 compared to RM9.7 million ($2.2 million) for the six months ended June 30, 2022.

 

Interest income is RM1.1 million ($240 thousand) for the six months ended June 30, 2023.

 

Revenue from other services consist of fintech and marketing related services. The revenue from other services increased by RM2.5 million, or 689.83%, to RM2.8 million ($604 thousand) for the six months ended June 30, 2023 compared to RM357 thousand ($81 thousand) for the six months ended June 30, 2022.

 

Other income

 

   

Six months ended

June 30,

2023

   

Six months ended

June 30,

2022

    Change  
    RM     USD     RM     %  
Interest income     942     202       22       4181.82  
Gain on disposal of investment     780,319     167,167       -       N.A.  
Gain on disposal of property and equipment     -     -       1,891     N.A.  
Gain on forex     158,801     34,020       -     N.A.  
Wage subsidy     -     -       29,900     N.A.  
Reimbursement income for expenses incurred     104,839     22,460       77,989     34.43  
Others     10,005     2,143       -     N.A.  
Total     1,054,906     225,992       109,802       860.73  

 

Other income was RM1.05 million ($226 thousand) and RM110 thousand ($25 thousand) for the six months ended June 30, 2023 and for the six months ended June 30, 2022 respectively. The Wage Subsidy Program (“WSP”) is a financial assistance introduced in Malaysia paid to employers of every enterprise, for each worker earning RM4,000 and below and for a period of six months only. The purpose of the WSP is to help employers affected by COVID-19 pandemic to be able to continue the companies’ operations and prevent employees from losing their jobs and source of income.

 

Gain on disposal of investment of RM780 thousand ($167 thousand) for the six months ended June 30, 2023 was related to the disposal of shares in Treasure Global Inc.

 

Reimbursement income for expenses incurred relates to the monthly out-of-pocket expenses charged by Imej Jiwa Communications Sdn Bhd to their clients for the investor relation services.

 

4

 

 

Cost of Services

 

The table below set forth details of our cost of revenue for the fiscal years indicated.

 

   Six months ended
June 30,
2023
   Six months ended
June 30,
2022
   Change 
   RM   USD   RM   % 
Consultant fee   5,676,167    1,216,000    610,797    829.30 
IT expenses   180,669    38,705    1,495,966    (87.92)
Training costs   192,398    41,217    -    N.A. 
Others   -    -    110,166    N.A. 
Total   6,049,234    1,295,922    2,216,929    172.87 

 

Our cost of services increased by RM3.8 million to RM6 million ($1.3 million) for the six months ended June 30, 2023 compared to RM2.2 million ($500 thousand) for the six months ended June 30, 2022. Consultant fee costs contributed RM5.7 million, or 93.83% to the total cost of services.

 

Consultant fee costs increased by RM5.1 million, or 829.3%, to RM5.7 million ($1.2 million) for the six months ended June 30, 2023 compared to RM611 thousand ($139 thousand) for the six months ended June 30, 2022. The consultant fee refers to the Company’s costs incurred from assisting its clients, in engaging all the relevant professionals required during the listing process, including but not limited to legal counsel, auditors, finance consultants, the US Capital markets consultant, which such Consultant fee payment shall be included and treated as part of our consultation services for its clients during the IPO’s process. The increase in consultant fee cost was in line with the increase in our business consultancy revenue as we need to engage with more professionals in order to serve our clients. The gross profit margin of consultant income in term of consultant fee was 72.7% for the six months ended June 30, 2023 compared to 94.62% for the six months ended June 30, 2022.

 

IT expenses were RM181 thousand ($39 thousand) for the six months ended June 30, 2023 compared to RM1.5 million ($340 thousand) for the six months ended June 30, 2022. As a gross profit margin for Technology Development, Solutions and Consultancy revenue and IT expenses costs were 99.08% for the six months ended June 30, 2023, compared to 84.51% for the six months ended June 30, 2022.

 

Training costs was RM192 thousand ($41 thousand) for the six months ended June 30, 2023 and NIL for the six months ended June 30, 2022.

 

Other cost of services was NIL for the six months ended June 30, 2023 compared to RM110 thousand ($25 thousand) for the six months ended June 30, 2022.

 

Depreciation

 

Depreciation was RM274 thousand ($59 thousand) for the six months ended June 30, 2023, an increase of RM263 thousand compared with RM11.2 thousand ($2.5 thousand) for the six months ended June 30, 2022, primarily due to renovation of office and additional assets acquired, such as new computer and accessories purchased for our employees who joined during the first half of the year 2023.

 

Directors’ fees

 

Directors’ fees increased from RM141 thousand ($32 thousand) for the six months ended June 30, 2022 to RM5.4 million ($1.2 million) for the six months ended June 2023, with an increase of RM5.3 million or approximately 3755.08% as we started to pay fixed director fee to our Board of Directors in VCI Global Limited after successfully listed on Nasdaq in April 2023.

 

Employees’ benefits expenses

 

For the six months ended June 30, 2023, the employees’ benefits expenses were RM7.8 million ($1.7 million), an increase of RM3 million compared with RM4.8 million ($1.1 million) for the six months ended June 30, 2022. Such an increase was mainly attributable to the expansion of our business. Instead of relying on external resources, the Group had recruited more professional talents across different industries to support the Group’s growing businesses.

 

Impairment allowance on trade receivables

 

Impairment allowance on trade receivables was NIL for the six months ended June 30, 2023 as compared to RM184 thousand ($41.7 thousand) for the six months ended June 30, as we do not foresee any other irrecoverable receivables other than those we have already provided so far.

 

5

 

 

Rental expenses

 

Rental expenses slightly decreased by RM6.7 thousand, from RM157 thousand ($35.6 thousand) for the six months ended June 30, 2022 to RM150 thousand ($32.1 thousand) for the six months ended June 30, 2023. There are no significant changes for the six months ended June 30, 2023 compared to the six months ended June 30, 2022.

 

Legal & professional fees

 

Legal and professional fees were RM1.5 million ($316 thousand) for the six months ended June 30, 2023, an increase of RM1.4 million when compared with RM117 thousand ($26.6 thousand) for the six months ended June 30, 2022, primarily due to the audit fees of RM840 thousand incurred in auditing our Group financial statement.

 

Finance cost

 

Finance cost increased by RM7.2 thousand from RM8.7 thousand ($2 thousand) for the six months ended June 30, 2022 to RM15.9 thousand ($3.4 thousand) for the six months ended June 30, 2023, primarily due to increase in the interest rate and the principal of the term loan.

 

Other operating expenses

 

Other operating expenses included marketing expenses, office expenses, travelling expenses and etc. Other operating expenses increased by RM2.2 million from RM1.5 million ($335 thousand) for the six months ended June 30, 2022 to RM3.7 million ($786 thousand) for the six months ended June 30, 2023, mainly due to (i) increased in marketing expenses by RM759 thousand to reach out to more customers and create brand awareness, (ii) increased office expenses by RM575 thousand as bigger offices require higher maintenance and cleaning.

 

We expect overall operating costs, including marketing expenses, salaries, professional and business consulting expenses, to continue to increase in the foreseeable future, as we plan to hire additional personnel and incur additional expenses in connection with the expansion of our business operations.

 

Operating Income

 

Our operating income increased by RM6.6 million ($1.4 million) for the six months ended June 30, 2023, compared to RM14 million ($3 million) for the six months ended June 30, 2022.

 

Income Tax Expense

 

The Company had income tax expense of RM626 thousand ($134 thousand) for the six months ended June 30, 2023 compared to income tax expense of RM283 thousand ($64 thousand) for the six months ended June 30, 2022.

 

Fair value adjustment on financial assets measured at fair value through other comprehensive income

 

Fair value adjustment on financial assets measured at fair value through other comprehensive income is no longer needed for the six months ended June 30, 2023 as we have disposed all the financial assets measured at FVTOCI. In the same year, we share-swap 500 share of GlobexUS Holding Corp which is recognized in FVTOCI.   

 

Outstanding equity investments measured at FVTOCI are remeasured to an updated fair value at each reporting period with changes in fair value recorded to “Financial assets measured at FVTOCI” in the consolidated statement of financial position and to “Fair value adjustment on financial assets measured at FVTOCI” in the consolidated statement of comprehensive income. See “Note 4 – Financial assets measured at FVTOCI” in “Notes to the interim condensed consolidated financial statements” in exhibit 99.2 of this Form 6-K for a description of how the fair value of the equity investments are determined.

 

Liquidity and Capital Resources

 

We monitor our liquidity risk and maintain a level of cash and cash equivalents, deemed adequate by management to finance our operations and to mitigate the effects of fluctuations in cash flows. We consider cash from operating activities as the principal source of cash generation for our business. Cash and cash equivalents increased by approximately RM13.6 million to RM15 million ($3.3 million) as of June 30, 2023 compared to RM1.7 million as of June 30, 2022. As of the date of this filing, we believe that our cash and cash equivalents of RM15 million as of June 30, 2023 along with other actions the Company is taking are sufficient to fund ongoing operations for at least the next 12 months. The Company will seek to improve its liquidity position by potentially taking any or all of the following actions: improving collection of the outstanding trade and other receivable balances of RM56 million, as of June 30, 2023 and reducing general and administrative expenses.

 

6

 

 

Cash Flows

 

The following table sets forth our cash flows for the periods indicated:

 

  

Six months ended

June 30,

2023

  

Six months ended

June 30,

2022

 
   RM   USD   RM 
Cash used in operating activities   (17,180,181)   (3,680,494)   (641,593)
Cash generated from / (used in) investing activities   12,955,089    2,775,357    (178,310)
Cash provided by / (used in) financing activities   15,612,580    3,344,669    (589,151)
Net increase / (decrease) in cash and equivalents   11,387,488    2,439,532    (1,409,054)
Effect of foreign exchange   (54,622)   (11,702)   - 
Cash and equivalents at beginning of period   3,995,995    856,058    3,122,947 
Cash and equivalents at end of period   15,328,861    3,283,888    1,713,893 

 

Operating Activities

 

Net cash used in operating activities consists primarily of net income adjusted for non-cash items, changes in working capital and income tax expense. The timing between the conversion of our trade receivables into cash from our customers and distributions to our employees and vendors are the primary drivers of changes to our working capital.

 

Net cash used in operating activities increased by RM16.5 million to a RM17.2 million ($3.7 million) for the six months ended June 30, 2023 compared to RM642 thousand ($146 thousand) used in operating activities for the six months ended June 30, 2022. The increase in net cash used in operating activities is primarily due to an increase in the use of cash of RM40 million related to trade and other receivables. These increases in cash used in operating activities were offset in part by an increase of RM780 thousand in the gain of disposal of investment. We have had, and continue to experience, delays in collection of receivables which is in large part due to liquidity issues faced by our customers.

 

Investing Activities

 

Net cash generated by investing activities was RM13 million ($2.8 million) for the six months ended June 30, 2023 compared to RM178 thousand ($40 thousand) used in investing activities for the six months ended June 30, 2022. Cash generated by investing activities was mainly due to the proceed from disposal of investment in Treasure Global Inc.

 

Financing Activities

 

Net cash generated from financing activities was RM15.6 million ($3.3 million) for the six months ended June 30, 2023 compared to RM589 thousand ($134 thousand) used in financing activities for the six months ended June 30, 2022. Cash provided by financing activities for the six months ended June 30, 2023 was primarily related to RM17.4 million ($3.7 million) in proceeds from IPO.

 

Capital Expenditures

 

We have no material capital expenditures planned for the next 12 months.

 

Contractual Obligations

 

See “Contractual Obligations” under “Liquidity and Capital Resources” in the Company’s 2022 Form 6-K

 

Off Balance Sheet Arrangements

 

None.

 

Quantitative and Qualitative Disclosures about Market Risk

 

The management of the Group monitors and manages the financial risks relating to the operations of the Group to ensure appropriate measures are implemented in a timely and effective manner. These risks include market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

 

7

 

 

Market risk management

 

The Group activities are exposed primarily to the financial risks of changes in foreign currency exchange rates and interest rates. Management monitors risks associated with changes in foreign currency exchanges rates and interest rates and will consider appropriate measures should the need arise.

 

There has been no significant change to the Group’s exposure to market risk or the manner in which it manages and measures the risk.

 

Foreign currency risk management

 

The Group also transacts business in foreign currencies other than its functional currencies, as further disclosed below, and is therefore exposed to foreign exchange risk.

 

The currency exposure of financial assets and financial liabilities denominated in currencies other than the Group’s functional currencies are as follows:

 

   Assets   Liabilities 
   June 30,
2023
   December 31,
2022
   June 30,
2023
   December 31,
2022
 
   RM   RM   RM   RM 
Singapore Dollar   22,566    12,605    10,164    - 
United States Dollar   4,214,016    3,226,121    467,810    6,008,843 

 

Foreign currency sensitivity

 

The following table details the sensitivity to a 5% increase and decrease in the related foreign currencies against the functional currency (“RM”) with all the other variables held constant. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the possible change in foreign exchange rates.  The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates.

 

   June 30,
2023
   December 31,
2022
 
   RM   RM 
Singapore Dollar   620    630 
United States Dollar   187,310    (139,136)

 

Interest rate risk management

 

The Group is exposed to interest rate risk as the Group has bank loans which are interest bearing. The interest rates and terms of repayment of the loans are disclosed in the Note to the unaudited interim condensed consolidated financial statements . The Group currently does not have an interest rate hedging policy.

 

Interest rate sensitivity analysis

 

The sensitivity analysis below has been determined based on the exposure to interest rate for non-derivative instruments at the end of the reporting period.  A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

 

If interest rates on loans had been 50 basis points higher/lower and all other variables were held constant, the Group’s profit for the year would decrease/increase by approximately RM50,000 (2022: RM55,000).

 

8

 

 

Credit risk management

 

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. At the end of each reporting period, the Group maximum exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties arises from the carrying amount of the respective recognized financial assets as stated in the Statements of Financial Position.

 

In order to minimise credit risk, the Group has delegated its finance team to develop and maintain the Group’s credit risk grading to categorise exposures according to their degree of risk of default. The finance team uses publicly available financial information and the Group’s own historical repayment records to rate its major customers and debtors. The Group’s exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties.

 

The Group’s current credit risk grading framework comprises the following categories:

 

Category  Description  Basis for recognising ECL
Performing  The counterparty has a low risk of default and does not have any past-due amounts  12-month ECL
Doubtful  There has been a significant increase in credit risk since initial recognition  Lifetime ECL-not credit-impaired
In default  There is evidence indicating the asset is credit impaired  Lifetime ECL - credit impaired
Write-off  There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery  Amount is written off

 

For trade receivables, the Group has applied the simplified approach allowed in the accounting standard to measure the loss allowance at lifetime ECL. The Group determines the ECL on these items by using a provision matrix, estimated based on historical credit loss experience based on the past default experience of the debtor, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date. To measure the expected credit losses, trade receivables has been grouped based on shared credit risk characteristics (including high risk, normal risk and low risk type).

 

The directors of the Company considered that the ECL for non-credit impaired trade receivables is insignificant as at the end of the reporting period.

 

Liquidity risk management

 

Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds.

 

In assessing our liquidity, we monitor and analyse our cash on-hand and our operating expenditure commitments. Our liquidity needs are to meet our working capital requirements and operating expenses obligations. To date, we have financed our operations primarily through cash flows from operations, equity financing, and short-term borrowing from banks and third parties.

 

9

 

 

Based on the above considerations, management is of the opinion that the Company has sufficient funds to meet its working capital requirements and debt obligations, for at least the next 12 months from the unaudited condensed consolidated financial statement filing date. However, there is no assurance that management will be successful in their plans. There are several factors that could potentially arise that could undermine the Company’s plans, such as changes in the demand for its services, economic conditions, its operating results not continuing to deteriorate and its bank and shareholders being able to provide continued financial support.

 

The Group maintains sufficient cash and cash equivalent, and internally generated cash flows to finance their activities.

 

Liquidity risk analyses 

 

Non-derivative financial liabilities

  

The following table details the remaining contractual maturity for non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. The adjustment column represents the possible future cash flows attributable to the instrument included in the carrying amount of the financial liability on the statement of financial position.

 

   Weighted   On         
   average   demand         
   effective   or within   Within     
   interest rate   1 year   2 to 5 years   Total 
   %   RM   RM   RM 
As of June 30, 2023                
Non-interest bearing   -    6,395,343    2,017,705    8,413,048 
Fixed interest rate   3.5-5%   162,837    422,751    585,588 
Variable interest rate   BLR+2.6%   32,711    309,331    342,042 
Total        6,590,891    2,749,787    9,340,678 
                     
2022                    
Non-interest bearing   -    10,408,318    3,586,646    13,994,964 
Fixed interest rate   3.5-5%   1,114,999    744,331    1,859,330 
Variable interest rate   BLR+2.6%   16,543    -    16,543 
Total        11,539,860    4,330,977    15,870,837 

 

Non-derivative financial assets 

 

As at the end of the reporting period, the non-derivative financial assets are interest free and repayable on demand.

 

Fair value of financial assets and financial liabilities

 

The management considers that the carrying amounts of Group’s financial assets and financial liabilities approximate their respective fair values due to the relatively short-term maturity of these financial instruments. The fair values of other classes of financial assets and liabilities are disclosed in the respective notes to unaudited interim condensed consolidated financial statements.

 

 

10

 

 

Exhibit 99.2

 

 

 

 

 

 

 

 

 

 

 

VCI Global Limited and Subsidiaries
BVI Registration Number: 2035574

 

Interim Condensed Consolidated Financial Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

Interim condensed consolidated statements of financial position

 

   Note   As of
June 30, 2023
(Unaudited)
   As of
December 31,
2022
(Audited)
 
       RM   USD   RM 
ASSETS                
                 
Non-current assets                
Financial assets measured at fair value through other comprehensive income   4    7,002,234    1,500,082    12,819,747 
Financial assets measured at fair value through profit and loss   5    76,044    16,291    72,295 
Property and equipment   6    2,081,771    445,976    1,551,579 
Right-of-use of assets   7    555,445    118,992    714,143 
Deferred initial public offering expense   8    -    -    6,564,162 
Deferred tax assets   9    339,650    72,763    339,650 
Total non-current assets        10,055,144    2,154,104    22,061,576 
                     
Current assets                    
Trade and other receivables   10    55,983,342    11,993,261    15,759,533 
Amount due from related parties        -    -    7,000 
Cash and bank balances   11    15,328,861    3,283,888    3,995,995 
Total current assets        71,312,203    15,277,149    19,762,528 
                     
Total assets        81,367,347    17,431,253    41,824,104 
                     
LIABILITIES AND EQUITY                    
                     
Current liabilities                    
Trade and other payables   12    6,395,343    1,370,068    10,408,318 
Bank and other borrowings   15    682,410    146,192    783,542 
Lease liabilities   14    162,837    34,884    322,208 
Income tax payable        1,833,795    392,852    1,716,794 
Total current liabilities        9,074,385    1,943,996    13,230,862 
                     
Non-current liabilities                    
Bank and other borrowings   15    309,331    66,268    309,331 
Lease liabilities   14    422,751    90,566    422,751 
Amount due to related parties        2,017,705    432,251    3,586,646 
Total non-current liabilities        2,749,787    589,085    4,318,728 
                     
Total liabilities        11,824,172    2,533,081    17,549,590 
                     
Capital and reserves                    
Share capital   16    37,069,050    7,941,269    13,127,427 
Capital reserve   17    6,532,560    1,399,465    6,532,560 
Currency translation reserve   18    1,272,834    272,678    - 
Retained earnings        27,459,238    5,882,566    6,255,851 
Attributable to equity owners of the Company        72,333,682    15,495,978    25,915,838 
Non-controlling interests        (2,790,507)   (597,806)   (1,641,324)
Total equity        69,543,175    14,898,172    24,274,514 
                     
Total equity and liabilities        81,367,347    17,431,253    41,824,104 

 

The accompanying notes form an integral part of the unaudited interim condensed consolidated financial statements.

 

F-2

 

 

VCI Global Limited and Subsidiaries

Interim condensed consolidated financial statements (unaudited)

 

Interim condensed consolidated statements of comprehensive income (unaudited)

 

  

 

 

 

Note

  Six months ended
June 30,
2023
   Six months
ended
June 30,
2022
 
      RM   USD   RM 
Revenue  19   44,463,195    9,525,310    15,931,394 
Revenue – related party      
-
    
-
    5,443,238 
Total revenue      44,463,195    9,525,310    21,374,632 
Other income  20   1,054,906    225,992    109,802 
Fair value adjustment on financial assets measured at fair value through profit and loss      
-
    
-
    1,679,842 
Cost of services  21   (6,049,234)   (1,295,922)   (2,216,929)
Depreciation      (274,425)   (58,790)   (11,203)
Directors’ fees      (5,435,664)   (1,164,477)   (141,000)
Employee benefits expenses  22   (7,770,225)   (1,664,608)   (4,807,371)
Impairment allowance on trade receivables      
-
    
-
    (183,546)
Rental expenses      (149,951)   (32,124)   (156,673)
Legal and professional fees      (1,473,823)   (315,736)   (117,377)
Finance cost  23   (15,875)   (3,401)   (8,685)
Other operating expenses  24   (3,668,557)   (785,912)   (1,474,666)
Profit before income tax  25   20,680,347    4,430,332    14,046,826 
Income tax expense  26   (626,143)   (134,138)   (283,648)
Profit for the period      20,054,204    4,296,194    13,763,178 
Other comprehensive income (loss):                  
Exchange differences on translating foreign operations      1,272,834    272,678    
-
 
Fair value adjustment on financial assets measured at fair value through other comprehensive income      
-
    
-
    (4,199,770)
Total comprehensive income for the period      21,327,038    4,568,872    9,563,408 
                   
Profit attributable to:                  
Equity owners of the Company      21,203,387    4,542,382    13,568,156 
Non-controlling interests      (1,149,183)   (246,188)   195,022 
Total      20,054,204    4,296,194    13,763,178 
                   
Total comprehensive income attributable to:                  
Equity owners of the Company      22,476,221    4,815,060    9,368,386 
Non-controlling interests      (1,149,183)   (246,188)   195,022 
       21,327,038    4,568,872    9,563,408 
                   
Earnings per share - Basic and diluted
      0.55    0.12    0.40 

 

EARNINGS PER SHARE

 

   June 30, 
   2023   2022 
Weighted average number of ordinary shares used in computing basic earnings   36,292,259    33,636,100 
Weighted average number of ordinary shares used in computing diluted earnings   36,292,259    33,636,100 

 

The accompanying notes form an integral part of the unaudited interim condensed consolidated financial statements.

 

F-3

 

 

VCI Global Limited and Subsidiaries

Interim condensed consolidated financial statements (unaudited)

 

Interim condensed consolidated statements of changes in equity (Unaudited)

 

   Attributable to equity owners of the Company         
   Share   Capital   Foreign
exchange
   Retained       Non-
controlling
   Total 
   capital   reserves   reserves   earnings   Total   interests   equity 
   RM   RM   RM   RM   RM   RM   RM 
Balance at January , 2022   220,000    6,532,566    
-
    12,981,936    19,734,502    (371,259)   19,363,243 
                                    
Profit for the period   
-
    
-
    
-
    13,568,156    13,568,156    195,022    13,763,178 
                                    
Other comprehensive loss   
-
    
-
    
-
    (4,199,770)   (4,199,770)   
-
    (4,199,770)
                                    
Total comprehensive income for the period   
-
    
-
    
-
    9,368,386    9,368,386    195,022    9,563,408 
                                    
Issuance of share capital   2,615,477    
-
    
-
    
-
    2,615,477    
-
    2,615,477 
                                    
Balance at June 30, 2022   2,835,477    6,532,566    
-
    22,350,322    31,718,365    (176,237)   31,542,128 
                                    
Balance at January 1, 2023   13,127,427    6,532,560    
-
    6,255,851    25,915,838    (1,641,324)   24,274,514 
                                    
Profit for the period   
-
    
-
    
-
    21,203,387    21,203,387    (1,149,183)   20,054,204 
                                    
Exchange differences on translating foreign operations   
-
    
-
    1,272,834    
-
    1,272,834    
-
    1,272,834 
                                    
Total comprehensive income for the period   
-
    
-
    1,272,834    21,203,387    22,476,221    (1,149,183)   21,327,038 
                                    
Issuance of ordinary shares in initial public offering, net of issuance costs   16,939,389    
-
    
-
    
-
    16,939,389    
-
    16,939,389 
                                    
Issuance of ordinary shares via share-swap arrangement   7,002,234    
-
    
-
    
-
    7,002,234    
-
    7,002,234 
                                    
Balance at June 30, 2023   37,069,050    6,532,560    1,272,834    27,459,238    72,333,682    (2,790,507)   69,543,175 

 

The accompanying notes form an integral part of the interim condensed consolidated financial statements.

 

F-4

 

 

VCI Global Limited and Subsidiaries

Interim condensed consolidated financial statements (unaudited)

 

Interim condensed consolidated statements of cash flows (unaudited)

 

   Note  Six months ended
June 30,
2023
   Six months
ended
June 30,
2022
 
      RM   USD   RM 
Operating activities                  
Profit before income tax     20,680,347    4,430,332    14,046,826 
Adjustments for:                  
Impairment allowance on trade receivable      
-
    
-
    183,546 
Unrealised foreign exchange loss      805,197    172,498    
-
 
Depreciation of property and equipment      115,727    24,792    11,203 
Depreciation of right-of-use of assets      158,698    33,998    
-
 
Fair value adjustment on financial assets measured at fair value through profit and loss      
-
    
-
    (1,679,842)
Gain on disposal of investment      (780,319)   (167,167)   
-
 
Gain on disposal of property and equipment      
-
    
-
    (1,891)
Interest expense      15,875    3,401    8,685 
Interest income      (942)   (202)   (22)
Operating cash flow before movement in working capital      20,994,583    4,497,652    12,568,505 
Trade and other receivables      (40,216,809)   (8,615,611)   (8,629,924)
Trade and other payables      2,551,187    546,538    (4,804,822)
Cash used in operations      (16,671,039)   (3,571,421)   (866,241)
Interest received      
-
    
-
    22 
Income tax paid      (509,142)   (109,073)   224,626 
Net cash used in operating activities      (17,180,181)   (3,680,494)   (641,593)
                   
Investing activities                  
Purchase of property and equipment      (645,919)   (138,375)   (33,896)
Proceeds from disposal of property and equipment      
-
    
-
    11,706 
Interest paid      
-
    
-
    
-
 
Interest received      942    202    
-
 
Acquisition of financial assets measured at fair value through profit and loss      
-
    
-
    (156,120)
Proceeds from disposal of financial assets measured at fair value through other comprehensive income      13,600,066    2,913,530    
-
 
Net cash generated from / (used in) investing activities      12,955,089    2,775,357    (178,310)
                   
Financing activities                  
Proceeds from issuance of shares      
-
    
-
    2,615,477 
Proceeds from initial public offering, net of issuance costs      17,457,899    3,739,990    
-
 
Interest paid      (15,875)   (3,401)   
-
 
Repayments of other borrowings      (101,132)   (21,665)   (54,781)
Repayment of advances to related parties      (1,568,941)   (336,113)   (3,149,847)
Repayment of operating leases      (159,371)   (34,142)   
-
 
Net cash generated from / (used in) financing activities      15,612,580    3,344,669    (589,151)
                   
Net increase / (decrease) in cash and cash equivalents      11,387,488    2,439,532    (1,409,054)
Effect of currency translation on cash and cash equivalents      (54,622)   (11,702)   
-
 
Cash and bank balances at beginning of the period      3,995,995    856,058    3,122,947 
Cash and bank balances at end of the period      15,328,861    3,283,888    1,713,893 

 

The accompanying notes form an integral part of the unaudited interim condensed consolidated financial statements.

 

F-5

 

 

VCI Global Limited and Subsidiaries

Interim condensed consolidated financial statements (unaudited)

 

Notes to the unaudited interim condensed consolidated financial statements

 

These notes form an integral part of the unaudited interim condensed consolidated financial statements.

 

The unaudited interim condensed consolidated financial statements were authorised for issue by the Board of Directors on November 30, 2022.

 

1 ORGANIZATION AND PRINCIPAL ACTIVITIES

 

Organization and reorganization

 

VCI Global Limited was incorporated in the British Virgin Islands on April 29, 2020. The registered office of the Company is situated at Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, British Virgin Islands. The principal place of business of the Company is situation at B03-C-8, Menara 3A, KL Eco City, No.3 Jalan Bangsar, 59200 Kuala Lumpur, Malaysia.

 

The Group structure which represents the operating subsidiaries and dormant companies as the reporting date is as follow: 

 

 

 

F-6

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

The Company and its subsidiaries are in the table as follows: 

 

      Percentage of effective ownership      
Name  Date of
incorporation
  June 30,
2023
  31 December
2022
  Place of
incorporation
  Principal activities
      %  %      
VCI Global Limited  29.04.2020  100  100  British Virgin Island  Holding company
V Capital Kronos Berhad  01.09.2020  100  100  Malaysia  Holding company
V Capital Venture Sdn Bhd  19.08.2014  100  100  Malaysia  Provision of corporate and business advisory services in corporate finance, corporate structuring and restructuring, listings on recognised stock exchanges, and fintech advisory
Accuventures Sdn Bhd  22.06.2015  100  80  Malaysia  Provision of technology development, computer software programming and holding company.
Credilab Sdn Bhd  26.10.2020  100  80  Malaysia  Carry on licensed money lending activities, consulting, information technology development, and computer software programming
V Capital Advisory Sdn Bhd  12.02.2018  100  100  Malaysia  Provision of corporate and business advisory in relation to corporate listing exercise, equity investment, corporate restructuring, merger and acquisition and corporate finance.
V Capital Quantum Sdn Bhd  18.01.2018  100  100  Malaysia  Provision of information technology development, business consultancy services and holding company.
V Capital Consulting Limited  01.03.2016  100  100  British Virgin Island  Provision of corporate and business advisory services in corporate finance, corporate structuring and restructuring, listings on recognised stock exchanges, and fintech advisory
Generative AI Sdn Bhd  21.07.2023  100  -  Malaysia  Provision of Artificial Intelligence, image processing, communication, networking, & process control software services.
Imej Jiwa Communications Sdn Bhd  29.10.2012  100  100  Malaysia  Provision of investor relation consultation services.
AB Management and Consultancy Services Sdn Bhd  05.04.2020  80  80  Malaysia  Holding company
Elmu Education Group Sdn Bhd  03.12.2020  56  56  Malaysia  Education and training services
Elmu V Sdn Bhd  18.05.2021  69.2  69.2  Malaysia  Education and training services
Elmu Higher Education Sdn Bhd  24.05.2021  56  56  Malaysia  Education and training services
V Capital Real Estate Sdn Bhd  05.07.2021  100  100  Malaysia  Provision of consultancy services in relation to real estate
V Capital Robotics Sdn Bhd  12.10.2021  100  100  Malaysia  Dormant
VCI Energy Sdn Bhd (F.K.A TGI V Sdn Bhd)  12.11.2021  100  100  Malaysia  Dormant
VCIG Limited  29.04.2020  100  100  British Virgin Island  Dormant
V Galactech Sdn Bhd  12.01.2022  100  100  Malaysia  Provision of information technology development
VC Acquisition Ltd  04.01.2022  100  100  Malaysia  Dormant
VC Acquisition II Ltd  04.01.2022  100  100  British Virgin Island  Dormant

 

F-7

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

Principal activities

 

The Company is a holding company. The principal activities of the Company and its subsidiaries (collectively referred to as the “Company” or “the Group”) are the provision of business strategy consultancy and technology development solution consultancy. The Company is headquartered in Malaysia and conducts its primary operations through its significant direct and indirectly held subsidiaries that are incorporated and domiciled in Malaysia, namely V Capital Kronos Berhad, V Capital Quantum Sdn. Bhd., and V Capital Consulting Limited where was incorporated in the British Virgin Islands.

 

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

BASIS OF ACCOUNTING

 

The unaudited interim condensed consolidated financial statements have been prepared in accordance with the historical cost basis, except as disclosed in the accounting policies below, and are drawn up in accordance with the provisions of the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

 

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

 

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability which market participants would take into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these unaudited interim condensed consolidated financial statements is determined on such a basis.

 

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

 

  Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

 

  Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

 

  Level 3 inputs are unobservable inputs for the asset or liability.

 

ADOPTION OF NEW AND REVISED STANDARDS

 

At the date of authorisation of these unaudited interim condensed consolidated financial statements, management anticipates that the adoption of the new and revised IFRSs and amendments to IFRS in future periods will not have a material impact on the unaudited interim condensed consolidated financial statements of the Group in the period of their initial adoption.

 

NEW AND REVISED IFRS IN ISSUE BUT NOT YET EFFECTIVE

 

At the date of authorisation of these unaudited interim condensed consolidated financial statements, the Group has not adopted the new and revised IFRS, IFRS INT and amendments to IFRS that have been issued but are not yet effective to them. The Group do not anticipate that the adoption of these new and revised IFRS pronouncements in future periods will have a material impact on the Group’s unaudited interim condensed consolidated financial statements in the period of their initial adoption.

 

The preparation of these unaudited interim condensed consolidated financial statements in conformity with IFRS requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. The areas involving a higher degree of judgement or complexity, or areas where estimates and assumptions are significant to the unaudited interim condensed consolidated financial statements are disclosed in Note 3.

 

F-8

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

BASIS OF CONSOLIDATION 

 

  (a) Consolidation

 

As the Group were under same control of the controlling shareholders and their entire equity interests were also ultimately held by the controlling shareholders immediately prior to the group reorganization, the unaudited interim condensed consolidated statements of profit or loss and other comprehensive income, unaudited interim condensed consolidated statements of changes in equity and unaudited interim condensed consolidated statements of cash flows statements are prepared as if the current group structure had been in existence throughout the period ended June 30, 2023 and 2022, or since the respective dates of incorporation/establishment of the relevant entity, where this is a shorter period. The consolidated statements of financial position as at June 30, 2022 and 2023 present the assets and liabilities of the aforementioned companies now comprising the Group which had been incorporated/established as at the relevant balance sheet date as if the current group structure had been in existence at those dates based on the same control aforementioned. The Group eliminates all significant intercompany balances and transactions in its consolidated unaudited interim condensed consolidated financial statements.

 

Subsidiary corporations are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiary corporations are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on that control ceases.

 

In preparing the unaudited interim condensed consolidated financial statements, transactions, balances and unrealized gains on transactions between group entities are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment indicator of the transferred asset. Accounting policies of subsidiary corporations have been changed where necessary to ensure consistency with the policies adopted by the Group.

 

Non-controlling interests comprise the portion of a subsidiary corporation’s net results of operations and its net assets, which is attributable to the interests that are not owned directly or indirectly by the equity holders of the Company. They are shown separately in the consolidated statements of comprehensive income, statements of changes in equity, and statements of financial position. Total comprehensive income is attributed to the non-controlling interests based on their respective interests in a subsidiary, even if this results in the non-controlling interests having a deficit balance. 

 

Acquisition of entities under an internal reorganization scheme does not result in any change in economic substance. Accordingly, the unaudited interim condensed consolidated financial statements of the Group are a continuation of the acquired entities and is accounted for as follows:

 

  (i) The results of entities are presented as if the internal reorganization occurred from the beginning of the earliest period presented in the unaudited interim condensed consolidated financial statements;

 

  (ii) The Group will consolidate the assets and liabilities of the acquired entities at the pre-combination carrying amounts. No adjustments are made to reflect fair values, or recognize any new assets or liabilities, at the date of the internal reorganization that would otherwise be done under the acquisition method; and

 

  (iii) No new goodwill is recognized as a result of the internal reorganization. The only goodwill that is recognized is the existing goodwill relating to the combining entities. Any difference between the consideration paid/transferred and the equity acquired is reflected within equity as merger reserve or deficit.

 

F-9

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

  (b) Acquisitions

 

The acquisition method of accounting is used to account for business combinations entered into by the Group.

 

The consideration transferred for the acquisition of a subsidiary corporation or business comprises the fair value of the assets transferred, the liabilities incurred, and the equity interests issued by the Group. The consideration transferred also includes any contingent consideration arrangement and any pre-existing equity interest in the subsidiary measured at their fair values at the acquisition date.

 

Acquisition-related costs are expensed as incurred.

 

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.

 

On an acquisition-by-acquisition basis, the Group recognizes any non-controlling interest in the acquiree at the date of acquisition either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets.

 

The excess of (a) the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the (b) fair value of the identifiable net assets acquired is recorded as goodwill. 

 

  (c) Disposals

 

When a change in the Group’s ownership interest in a subsidiary corporation result in a loss of control over the subsidiary corporation, the assets and liabilities of the subsidiary corporation including any goodwill are derecognized. Amounts previously recognized in other comprehensive income in respect of that entity are also reclassified to profit or loss or transferred directly to retained earnings if required by a specific Standard.

 

Any retained equity interest in the entity is remeasured at fair value. The difference between the carrying amount of the retained interest at the date when control is lost, and its fair value is recognized in profit or loss.

 

  (d) Transactions with non-controlling interests

 

Changes in the Group’s ownership interest in a subsidiary corporation that do not result in a loss of control over the subsidiary corporation are accounted for as transactions with equity owners of the Company. Any difference between the change in the carrying amounts of the non-controlling interest and the fair value of the consideration paid or received is recognized within equity attributable to the equity holders of the Company.

 

F-10

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

CONVENIENCE TRANSLATION

 

Translations of amounts in the unaudited interim condensed consolidated financial statements from RM into USD as of and for the year ended June 30, 2023 are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 = RM 4.6679, as published in H.10 statistical release of the United States Federal Reserve Board. No representation is made that the RM amounts could have been, or could be, converted, realized or settled into USD at such rate or at any other rate. 

 

FINANCIAL ASSETS

 

  (a) Classification and measurement

 

The Group classifies its financial assets at fair value through other comprehensive income, fair value through profit and loss and amortized cost.

 

The classification depends on the Group’s business model for managing the financial assets as well as the contractual terms of the cash flows of the financial assets.

 

Financial assets at fair value through other comprehensive income (“FVTOCI”) are equity securities which are not held for trading but more for strategic investments or debt securities where contractual cash flows are solely principal and interest and the objective of the Group’s business model is achieved both by collecting contractual cash flow and selling financial assets.

 

On initial recognition, the Group may make an irrevocable election (on an instrument-by-instrument basis) to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognised by an acquirer in a business combination.

 

Investments in equity instruments as at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income (“OCI”) and accumulated in the retained earnings. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, and will be transferred to retained earnings. 

 

The Group reclassifies debt instruments when and only when its business model for managing those assets changes.

 

At subsequent measurement - Debt instrument

 

Debt instruments mainly comprise of cash and cash equivalents and other receivables (excluding prepayments).

 

Debt instruments that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in interest income using the effective interest rate method. 

 

The Group recognises a loss allowance for ECL on financial assets which are subject to impairment assessment under IFRS 9. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognises lifetime ECL for accounts receivables. The ECL on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. For all other financial instruments, the Group measures the loss allowance equal to 12-month ECL, unless when there has a significant increase in credit risk since initial recognition, the Group recognises lifetime ECL. The assessment of whether lifetime ECL should be recognised is based on significant increase in the likelihood or risk of a default occurring since initial recognition.

 

F-11

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

Significant increase in credit risk

 

In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. Forward-looking information considered includes the future prospects of the industries in which the Group’s debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the Group’s operations.

 

In particular, the following information is taken into account when assessing whether credit risk has increased significantly:

 

  an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating;

 

  significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, the credit default swap prices for the debtor;

 

  existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations;

 

  an actual or expected significant deterioration in the operating results of the debtor;

 

  significant increases in credit risk on other financial instruments of the same debtor;

 

  an actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations.

 

Irrespective of the outcome of the above assessment, the Group presumes that the credit risk has increased significantly since initial recognition when contractual payments are more than 60 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise.

 

  (b) Recognition and derecognition

 

Regular way purchases and sales of financial assets are recognized on trade date – the date on which the Group commits to purchase or sell the asset.

 

Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

 

On disposal of a debt instrument, the difference between the carrying amount and the sale proceeds is recognized in profit or loss.

 

F-12

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

FINANCIAL LIABILITIES AND EQUITY INSTRUMENTS

 

Classification as debt or equity

 

Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

 

Equity instruments

 

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue costs.

 

Financial liabilities

 

Except for derivative financial instruments which are stated at fair value through profit or loss, all other financial liabilities are subsequently measured at amortised cost using the effective interest method.

 

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

 

Derecognition of financial liabilities

 

The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

 

Offsetting financial instruments

 

Financial assets and liabilities are offset, and the net amount reported in the balance sheet when there is a legally enforceable right to offset and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

 

PROPERTY AND EQUIPMENT

 

  (a) Measurement

 

  (i) Property and equipment

 

Property and equipment are initially recognized at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

 

  (ii) Components of costs

 

The cost of an item of property and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

 

F-13

 

  

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

  (b) Depreciation

 

Depreciation on other items of property and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives as followed;

 

Office renovation - 10 years
Office equipment - 5 years
Furniture and fittings - 5 years
Electrical and fittings - 10 years
Right of use asset - 3 years

 

No depreciation is charged on construction in progress.

 

The residual values estimated useful lives and depreciation method of property and equipment are reviewed, and adjusted as appropriate, at each balance sheet date. The effects of any revision are recognized in profit or loss when the changes arise.

 

  (c) Subsequent expenditure

 

Subsequent expenditure relating to property and equipment that has already been recognized is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. All other repair and maintenance expenses are recognized in profit or loss when incurred.

 

  (d) Disposal

 

On disposal of an item of property and equipment, the difference between the disposal proceeds and its carrying amount is recognized in profit or loss.

 

TRADE AND OTHER RECEIVABLES

 

A receivable is recognised when the Group has an unconditional right to receive consideration. A right to receive consideration is unconditional if only the passage of time is required before payment of that consideration is due. If revenue has been recognised before the Group has an unconditional right to receive consideration, the amount is presented as a contract asset. Trade receivables that do not contain a significant financing component are initially measured at their transaction price. Trade receivables that contain a significant financing component and other receivables are initially measured at fair value plus transaction costs. All receivables are subsequently stated at amortised cost, using the effective interest method and including an allowance for credit losses.

 

IMPAIRMENT OF NON-FINANCIAL ASSETS

 

Property and equipment are tested for impairment whenever there is any objective evidence or indication that these assets may be impaired.

 

For the purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the Cash Generating units (“CGU”) to which the asset belongs.

 

If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognized as an impairment loss in profit or loss.

 

An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

 

A reversal of impairment loss for an asset other than goodwill is recognized in profit or loss.

 

F-14

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

TRADE AND OTHER PAYABLES

 

Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. They are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). Otherwise, they are presented as non-current liabilities.

 

Trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method.

 

CONTRACT LIABILITIES

 

A contract liability is recognised when the customer pays non-refundable consideration before the Group recognises the related revenue. A contract liability would also be recognised if the Group has an unconditional right to receive non-refundable consideration before the Group recognises the related revenue. In such cases, a corresponding receivable would also be recognised. Contract liabilities are recognized as revenue when the Group satisfied its performance obligation.

 

BANK AND OTHER BORROWINGS

 

Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least 12 months after the balance sheet date, in which case they are presented as non-current liabilities.

 

  (a) Borrowings - Borrowings are initially recognized at fair value (net of transaction costs) and subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

 

  (b) Borrowing costs - Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

 

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

 

DEFERRED REVENUE

 

Deferred revenue refers to advance payment from clients for services that have not yet been rendered. Under the accrual basis of accounting, the Group records this payment as a liability. Once the services have been rendered, the liability is reversed and revenue is recorded instead.

 

LEASES

 

When the Group is the lessee

 

At the inception of the contract, the Group assesses if the contract contains a lease. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Reassessment is only required when the terms and conditions of the contract are changed.

 

  Right-of-use assets

 

F-15

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

The Group recognizes a right-of-use asset and lease liability at the date which the underlying asset is available for use. Right-of-use assets are measured at cost which comprises the initial measurement of lease liabilities adjusted for any lease payments made at or before the commencement date and lease incentive received. Any initial direct costs that would not have been incurred if the lease had not been obtained are added to the carrying amount of the right- of-use assets.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

 

Right-of-use assets are presented within “Property and equipment”.

 

  Lease liabilities

 

The initial measurement of a lease liability is measured at the present value of the lease payments discounted using the implicit rate in the lease, if the rate can be readily determined. If that rate cannot be readily determined, the Group shall use its incremental borrowing rate.

 

Lease payments include the following:

 

  - Fixed payment (including in-substance fixed payments), less any lease incentives receivables;

 

  - Variable lease payment that are based on an index or rate, initially measured using the index or rate as at the commencement date;

 

  - Amount expected to be payable under residual value guarantees;

 

  - The exercise price of a purchase option if is reasonably certain to exercise the option; and

 

  - Payment of penalties for terminating the lease, if the lease term reflects the Group exercising that option.

 

For contracts that contain both lease and non-lease components, the Group allocates the consideration to each lease component on the basis of the relative stand-alone price of the lease and non-lease component. The Group has elected to not separate lease and non-lease component for property leases and account these as one single lease component.

 

Lease liability is measured at amortized cost using the effective interest method. Lease liability shall be remeasured when:

 

  - There is a change in future lease payments arising from changes in an index or rate;

 

  - There is a change in the Group’s assessment of whether it will exercise an extension option; or

 

  - There is modification in the scope or the consideration of the lease that was not part of the original term.

 

Lease liability is remeasured with a corresponding adjustment to the right-of-use assets, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

 

  Short-term and low-value leases

 

The Group has elected to not recognized right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months or less and leases of low-value leases. Lease payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term.

 

  Variable lease payments

 

Variable lease payments that are not based on an index or a rate are not included as part of the measurement and initial recognition of the lease liability. The Group shall recognize those lease payments in profit or loss in the periods that triggered those lease payments.

 

F-16

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

EMPLOYEE BENEFITS

 

Employee benefits are recognized as an expense, unless the cost qualifies to be capitalized as an asset.

 

  (a) Defined contribution plans

 

Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into separate entities such as the Employees Provident Fund on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid.

 

  (b) Employee leave entitlement

 

Employee entitlements to annual leave are recognized when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date.

 

PROVISIONS

 

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.  Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

 

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

 

REVENUE RECOGNITION

 

Revenue is recognised to depict the transfer of promised services to clients at an amount that reflects the consideration to which an entity expects to be entitled in exchange for those services. Specifically, the Group uses a five-step approach to recognise revenue:

 

Step 1: Identify the contract(s) with a client

 

Step 2: Identify the performance obligations in the contract

 

Step 3: Determine the transaction price

 

Step 4: Allocate the transaction price to the performance obligations in the contract

 

Step 5: Recognise revenue when (or as) the Group satisfies a performance obligation

 

The Group recognises revenue when (or as) a performance obligation is satisfied, i.e., when “control” of the services underlying the particular performance obligations is transferred to clients.

 

A performance obligation represents a service (or a bundle of services) that is distinct or a series of distinct services that are substantially the same.

 

F-17

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

Control is transferred overtime and revenue is recognised overtime by reference to the progress towards complete satisfaction of the relevant performance obligation if one of the following criteria is met:

 

  the client simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs;

 

  the Group’s performance creates or enhances an asset that the client controls as the asset is created or enhanced; or

 

  the Group’s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.

 

Otherwise, revenue is recognised at a point in time when the customer obtains control of the distinct service. 

 

Advance payments received from clients are recognized as contract liabilities as the Group has not yet satisfied its performance obligation. Contract liabilities are recognized as revenue when the Group satisfied its performance obligation. The Group may receive payment for service prior to, or after it satisfies the performance obligation under a service agreement.

 

  a) Business Strategy Consultancy

 

Business strategy consultancy services primarily included listing advisory and solutions, investors relations and boardroom strategies consultancy. The revenues generated from business strategy consultancy services are generally based on the fixed fee billing arrangements that require the clients to pay a pre-established fee in exchange for a predetermined set of professional services. The clients agree to pay a fixed fee periodically over the contract terms as specified in the service agreements.

 

Our contracts from business strategy consultancy are typically less than a year in duration. Revenues are generally recognised over time. When contractual billings represent an amount that corresponds directly with the value provided to the client, revenues are recognised as amount become billable in accordance with the contract terms. Revenues from fixed-priced contracts are generally recognised using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the Company performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to client.

 

  b) Technology Development, Solutions and Consultancy

 

Technology development, solutions and consultancy primarily included digital development, fintech solution and software solutions.

 

Technology Development

 

The contract is typically fixed priced and does not provide any post contract client support or upgrades. The Group designs system based on clients’ specific needs which require the Group to perform services including design/redesign, development, and integration. These services also require significant customization. Upon delivery of the services, client acceptance is generally required. The Group assesses that software development services is considered as a performance obligation. The duration of the development period is usually six months to two years.

 

The Group’s system development service revenues are generated primarily from contracts with clients across sectors. The contracts contain negotiated billing terms which generally include multiple payment phases throughout the contract term and a portion of contract amount usually is billed upon the completion of the related projects. Pursuant to the contract terms, the Group has enforceable right on payments for the work performed.

 

The Group’s revenue from technology development contracts is generally recognized over time. The Group uses an input method based on cost incurred as the Group believes that this method most accurately reflects the Group’s progress toward satisfaction of the performance obligation, which usually takes six months to two years. Under this method, the Group could appropriately measure the fulfilment of a performance obligation. Assumptions, risks, and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables, and deferred revenues at each reporting period.

 

F-18

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

Solutions and Consultancy

 

Revenue from solutions and consulting services is primarily comprised of fixed-fee contracts, which require the Group to provide professional solutions and consulting services over contract terms beginning on the commencement date of each contract, which is the date its service is made available to clients. Billings to the clients are generally on a monthly or quarterly basis over the contract term, which is typically 6 to 12 months. The solutions and consulting services contracts typically include a single performance obligation. The revenue from solutions and consulting services is recognized over the contract term.

 

  c) Interest income received

 

Interest income is received from the money lending other entities and individuals. Interest income is recognised on a time-proportion basis using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cashflow discounted at original effective interest rate of the instrument, and thereafter amortising the discount as interest income.

 

GOVERNMENT GRANTS AND SUBSIDIES

 

Grants from the government are recognized as a receivable at their fair value when there is reasonable assurance that the grant will be received and the Group will comply with all the attached conditions.

 

Government grants receivable are recognized as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are shown separately as other income.

 

Grants related to assets are presented as deferred income under trade and other payables.

 

CASH AND CASH EQUIVALENTS

 

For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents include cash on hand, deposits with financial institutions which are subject to an insignificant risk of change in value.

 

SHARE CAPITAL

 

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are deducted against the share capital account.

 

INCOME TAX

 

Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a tax authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

 

Deferred income tax is recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

 

A deferred income tax liability is recognized on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

 

A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized.

 

F-19

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

Deferred income tax is measured:

 

  (i) at the tax rates that are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date; and

 

  (ii) based on the tax consequence that will follow from the manner in which the Group expects, at the balance sheet date, to recover or settle the carrying amounts of its assets and liabilities except for investment properties. Investment property measured at fair value is presumed to be recovered entirely through sale.

 

Current and deferred income taxes are recognized as income or expense in profit or loss, except to the extent that the tax arises from a business combination or a transaction which is recognized directly in equity. Deferred tax arising from a business combination is adjusted against goodwill on acquisition.

 

The Group accounts for investment tax credits (for example, productivity and innovation credit) similar to accounting for other tax credits where a deferred tax asset is recognized for unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax credits can be utilized.

 

FOREIGN CURRENCY TRANSACTIONS

 

  (a) Functional and presentation currency

 

Items included in the unaudited interim condensed consolidated financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The unaudited interim condensed consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is the functional currency of the Company and the presentation currency of the Group.

 

The value of foreign currencies including, the US Dollar (“USD”), may fluctuate against the RM. Any significant variations of the aforementioned currencies relative to the RM may materially affect the Group’s financial condition in terms of reporting in RM. The following table outlines the currency exchange rates that were used in preparing the accompanying consolidated unaudited interim condensed consolidated financial statements:

 

   December 31,   June 30, 
   2022   2022   2023 
RM to USD at the end of the period   4.4025    4.4075    4.6679 
RM to USD Average rate   4.3983    4.2867    4.4863 

 

  (b) Transactions and balances

 

Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates at the dates of the transactions. Currency exchange differences resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the balance sheet date are recognized in profit or loss. Monetary items include primarily financial assets (other than equity investments), contract assets and financial liabilities. However, in the unaudited interim condensed consolidated financial statements, currency translation differences arising from borrowings in foreign currencies and net investment in foreign operations, are recognized in other comprehensive income and accumulated in the currency translation reserve.

 

When a foreign operation is disposed of or any loan forming part of the net investment of the foreign operation is repaid, a proportionate share of the accumulated currency translation differences is reclassified to profit or loss, as part of the gain or loss on disposal.

 

Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at the date when the fair values are determined.

 

F-20

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

  (c) Translation of Group entities’ financial statements

 

The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

 

  (i) assets and liabilities are translated at the closing exchange rates at the reporting date;

 

  (ii) income and expenses are translated at average exchange rates (unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated using the exchange rates at the dates of the transactions); and

 

  (iii) all resulting currency translation differences are recognized in other comprehensive income and accumulated in the currency translation reserve. These currency translation differences are reclassified to profit or loss on disposal or partial disposal with loss of control of the foreign operation.

 

Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and liabilities of the foreign operations and translated at the closing rates at the reporting date.

 

RELATED PARTIES

 

(a)A person, or a close member of that person’s family, is related to the Group if that person:

 

(i)has control or joint control over the Group;

 

  (ii) has significant influence over the Group; or

 

  (iii) is a member of the key management personnel of the Group or the Group’s parent. 

 

  (b) An entity is related to the Group if any of the following conditions applies:

 

(i)The entity and the group are members of the same Group (which means that each parent, subsidiary and fellow subsidiary is related to the others).

 

  (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a Group of which the other entity is a member). 

 

  (iii) Both entities are joint ventures of the same third party.

 

  (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. 

 

  (v) The entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the group. 

 

  (vi) The entity is controlled or jointly controlled by a person identified in (a).

 

  (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). 

 

  (viii) The entity, or any member of a Group of which it is a part, provides key management personnel services to the Group or to the Group’s parent. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.  

 

EARNINGS PER SHARE

 

The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted-average number of ordinary shares outstanding during the year, adjusted for own shares held, if any. Diluted earnings per share is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted-average number of ordinary shares outstanding, adjusted for own shares held, if any, for the effects of all dilutive potential ordinary shares.

 

F-21

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

SEGMENT REPORTING

 

Operating segments, and the amounts of each segment item reported in the unaudited interim condensed consolidated financial statements, are identified from the financial information provided regularly to the Group’s most senior executive management for the purposes of allocating resources to, and assessing the performance of, the Group’s various lines of business and geographical locations.

 

Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments which are not individually material may be aggregated if they share a majority of these criteria.

 

3 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

 

In the application of the Group’s accounting policies, which are described in Note 2 to the unaudited interim condensed consolidated financial statements, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods.

 

Critical judgements in applying the Group’s accounting policies

 

There are no critical judgements, apart from those involving estimation (see below) that the management has made in the process of applying the Group’s accounting policy and that has the most significant effect on the amounts recognised in the unaudited interim condensed consolidated financial statements.

 

Key sources of estimation uncertainty

 

The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are disclosed below:

 

Fair value measurement of unquoted shares (Note 5)

 

In determining the fair value of the unquoted shares, the Group relies on the net asset values of the investee companies or independent valuation report.

 

The availability of observable inputs can vary from investment to investment. For certain investments classified under Level 3 of the fair value hierarchy, the valuation could be based on models or inputs that are less observable or unobservable in the market and the determination of the fair values require significant judgement. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to occurrence of future events which could not be reasonably determined as at the balance sheet date.

 

F-22

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

4FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

 

   December 31, 2022   June 30, 2023 
   RM   RM   USD 
Quoted shares measured at fair value through other comprehensive income (“FVTOCI”):               
At beginning of year   34,221,879    12,819,747    2,746,363 
Addition   
-
    7,002,234    1,500,082 
Fair value adjustment   (21,402,132)   
-
    
-
 
Disposal   
-
    (12,819,747)   (2,746,363)
At end of the period   12,819,747    7,002,234    1,500,082 

 

Quoted shares measured at FVTOCI

 

In prior financial year, quoted investment in shares measured at FVTOCI related to an equity interest of 14.55% in Treasure Global Inc (“TGL”), an entity that is listed on the Nasdaq Stock Market. Hoo Voon Him is also a director in TGI. In January 2023, the Company disposed all of its shareholdings in TGL shares.

 

In May 2023, the Company acquired 500 shares from Globexus Holding Corp via a share-swap arrangement (Note 16).

 

5FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT AND LOSS

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Unquoted shares:            
At beginning of year   1,309,134    72,295    15,488 
Addition   10,211    
-
    
-
 
Disposal   (1,247,050)   
-
    
-
 
Adjustment – forex exchange   
-
    3,749    803 
At end of year   72,295    76,044    16,291 

 

Other unquoted shares

 

Included in the unquoted shares are investment in the following:

 

5% (December 31, 2022: 5%) equity interest in Zero Carbon Farms Ltd, an entity incorporated in United Kingdom.

 

0.1% (December 31, 2022: 0.1%) equity interest in Unique Fire Holdings Berhad, an entity incorporated in Malaysia.

 

In September 2022, the Company disposed all of its shareholdings in DFA Robotic Co. Ltd to a third party.

 

The above valuations are categorised under Level 3 of the fair value hierarchy and are generally sensitive to the unobservable inputs. Any increase or decrease in transacted price would result in an increase or decrease in the fair value of the unquoted investments. Any significant movement in inputs would result in a significant change to the fair value of the unquoted investment. There are no transfers between Levels 1 and 2 and into or out of Level 3 during the year.

 

F-23

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

6PROPERTY, PLANT AND EQUIPMENT

 

  

Office

equipment

   Fixtures and fittings   Office renovations   Computer & software   Total 
   RM   RM   RM   RM   RM 
Cost                    
As of January 1, 2022   29,869    146,711    102,550    142,198    421,328 
Additions   157,518    218,109    1,221,412    71,912    1,668,951 
Disposals   (2,302)   (104,017)   
-
    (86,460)   (192,779)
As of December 31, 2022   185,085    260,803    1,323,962    127,650    1,897,500 
Additions   33,822    20,457    419,947    171,693    645,919 
Disposals   
-
    
-
    
-
    
-
    
-
 
As of June 30, 2023   218,907    281,260    1,743,909    299,343    2,543,419 
                          
Accumulated depreciation                         
As of January 1, 2022   20,145    143,851    48,909    55,891    268,796 
Depreciation for the period   17,944    31,613    135,552    44,459    229,568 
Disposals   (2,300)   (104,006)   
-
    (46,137)   (152,443)
As of December 31, 2022   35,789    71,458    184,461    54,213    345,921 
Depreciation for the period   10,931    35,393    68,070    1,333    115,727 
As of June 30, 2023   46,720    106,851    252,531    55,546    461,648 
                          
Carrying amounts                         
As of December 31, 2022   149,296    189,345    1,139,501    73,437    1,551,579 
As of June 30, 2023   172,187    174,409    1,491,378    243,797    2,081,771 
As of June 30, 2023 (USD)   36,887    37,364    319,497    52,228    445,976 

  

F-24

 

  

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

7RIGHT-OF-USE ASSETS

 

   RM 
Cost    
At January 1, 2022   
-
 
Additions   952,191 
At December 31,2022   952,191 
Additions   
-
 
At June 30, 2023   952,191 
      
Accumulated depreciation     
At January 1, 2022   
-
 
Depreciation for the period   238,048 
At December 31, 2022   238,048 
Depreciation for the period   158,698 
At June 30, 2023   396,746 
      
Carrying amount as of December 31, 2022   714,143 
Carrying amount as of June 30, 2023   555,445 
Carrying amount as of June 30, 2023 (USD)   118,992 

 

8DEFERRED INITIAL PUBLIC OFFERING EXPENSE

 

Initial public offering expense directly attributable to offering of securities are deferred and would be charged against the gross proceeds of the offering, as a reduction in share capital. As of June 30, 2023, the Company capitalised deferred of RM 6,564,162 and such cost have been offset against the offering proceeds at the closing of the initial public offering in April 2023.

 

F-25

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

9DEFERRED TAX ASSETS

 

The following are the major deferred tax assets recognised by the Group and the movements thereon, during the current and prior reporting periods:

 

   December 31, 2022   June 30,
2023
 
   RM   RM   USD 
Provisions:            
At beginning/end of year   339,650    339,650    72,763 

 

10 TRADE AND OTHER RECEIVABLES

 

  

As of
June 30,
2023

  

As of
December 31,
2022

 
   RM   USD   RM 
Trade receivables            
Third parties   31,135,686    6,670,170    15,266,925 
Less: Impairment allowance on trade receivables   (1,500,526)   (321,456)   (1,757,638)
    29,635,160    6,348,714    13,509,287 
Related party   117,757    25,227    1,305,724 
Total trade receivables   29,752,917    6,373,941    14,815,011 
                
Deposits   1,253,629    268,564    195,507 
Prepayments   538,390    115,339    28,578 
Other receivables   24,438,406    5,235,417    720,437 
Total   55,983,342    11,993,261    15,759,533 
                
Movement in impairment allowance on trade receivables   (257,112)   (55,081)   342,427 
                
Beginning balance   1,757,638    376,537    1,415,211 

Exchange differences

   (257,112)   (55,081)   342,427 
Ending balance   1,500,526    321,456    1,757,638 

 

The average credit period for services rendered is 30 days. No interest is charged on the outstanding balances. 

 

Other receivables consist of disposal of financial asset through other comprehensive income (Note 4). Furthermore, there are ordinary shares obtained from our customers as part of our business consultancy professional fee which disposed to third party investors.

 

F-26

 

  

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

  

As of

June 30,

2023

  

As of

December 31,

2022

 
   RM   USD   RM 
Not past due   22,912,675    4,908,562    11,643,721 
Past due   8,340,768    1,786,835    4,928,928 
Less: Impairment allowance on trade receivables   (1,500,526)   (321,456)   (1,757,638)
Net trade receivables   29,752,917    6,373,941    14,815,011 

 

A majority of the Group’s trade receivables that are neither past due nor impaired are with creditworthy counterparties with good track record of credit history.

 

(i)Aging of receivables that are past due the average credit period:

 

  

As of
June 30,
2023

  

As of
December 31,
2022

 
   RM   USD   RM 
< 30 days   290,053    62,138    
-
 
31 days to 60 days   154,755    33,153    1,862,965 
61 days to 210 days   6,395,434    1,370,088    
-
 
211 days to 240 days   
-
    
-
    
-
 
241 days to < 1 year   1,500,526    321,456    3,065,963 
Total   8,340,768    1,786,835    4,928,928 

 

In determining the recoverability of trade receivables, the Group considers any changes in the credit quality of the trade receivables from the date credit was initially granted up to the reporting date. There was no significant change in credit quality for the Group’s trade receivables balances which are past due and partially impaired.

 

(ii)These amounts are stated before any deduction for impairment losses and are not secured by any collateral or credit enhancements.

 

The impairment allowance in trade receivable has been determined by taking into consideration recovery prospects and past doubtful experience.

 

As part of the Group’s credit risk management, the Group assesses the impairment for its customers based on different group of customers which share common risk characteristics that are representative of the customers’ abilities to pay all amounts due in accordance with the contractual terms.

 

Impairment allowance on trade receivables has been measured at an amount equal to lifetime expected credit losses (“ECL”). The ECL on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate. The Group has recognized a loss allowance of 100% against general receivables over 240 days past due because historical experience has indicated that these receivables are generally not recoverable. For specific and individual trade receivables, the Group has access them individually to decide whether the trade receivables have recoverable issues based on the closely contact and past experience to justify it.

 

F-27

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

There has been no change in the estimation techniques or significant assumptions made during the current reporting period. A trade receivable is written-off when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery.

 

The following table details the risk profile of trade receivables based on the Group’s provision matrix. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished between the Group’s different customer base:

 

   Trade receivables – days past due 
   Not past
due
   1 to 30
days
   31-60
days
   61-210
days
   211-240
days
   Over 241
days
   Total 
   RM   RM   RM   RM   RM   RM   RM 
Expected credit loss rate   
-
    
-
    
-
    
-
   
-
   100%   
-
 
Lifetime ECL – December 31, 2022   
-
    
-
    
-
    
-
    
-
    1,757,638    1,757,638 
Lifetime ECL – June 30, 2023   
-
    
-
    
-
    

-

    
-
    1,500,526    1,500,526 

 

The above balances that are not denominated in the functional currency are as follows:

 

   December 31,
2022
   June 30,
2023
 
   RM   RM 
United States dollar   3,205,795    3,625,681 

 

F-28

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

11 CASH AND BANK BALANCES

 

  

As of
December 31,
2022

  

As of
June 30,
2023

 
   RM   RM   USD 
Cash and bank balances   3,953,991    15,287,897    3,275,112 
Cash at share trading accounts   42,004    40,964    8,776 
Total   3,995,995    15,328,861    3,283,888 

 

Cash at share trading accounts are readily convertible to a known amount of cash which are subject to an insignificant risk of changes in value. 

 

The above balances that are not denominated in the functional currency are as follows:

 

   December 31,
2022
   June 30,
2023
 
   RM   RM 
Singapore dollar   12,605    22,566 
United States dollar   20,326    588,335 

 

12 TRADE AND OTHER PAYABLES

 

   December 31,
2022
   June 30,
2023
 
   RM   RM   USD 
Trade payables   139,102    1,148,594    246,062 
Accruals   7,965,442    4,657,361    997,742 
Sundry payables   2,303,774    589,388    126,264 
Total   10,408,318    6,395,343    1,370,068 

 

Accruals consist mainly of staff salaries and sundry payables consist mainly of audit fees, secretarial fees and other professional fees. 

 

The above balances that are not denominated in the functional currency are as follows:

 

   December 31,
2022
   June 30,
2023
 
   RM   RM 
Singapore dollar   
    10,164 
United States dollar   6,008,843    467,810 

 

F-29

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

13CONTRACT LIABILITIES

 

   December
2022
   June 30,
2023
 
   RM   RM   USD 
At beginning of year / period   500,000    
-
    
-
 
Amount recognised as revenue   (500,000)   
-
    
-
 
At of end of year / period   
-
    
-
    
-
 

 

Contract liabilities relates to advances collected from customers upon contract fee billed but services have yet rendered. These will be recognised as revenue over the terms of the contract.

 

14LEASE LIABILITIES

 

   December 31,
2022
   June 30,
2023
 
   RM   RM   USD 
At beginning of year / period   
-
    744,959    159,592 
Additions   952,191    
-
    
-
 
Finance cost   24,768    14,629    3,134 
Payments   (232,000)   (174,000)   (37,276)
At end of year / period   744,959    585,588    125,450 
                
Future lease payment payables:               
-  Within one year   348,000    174,000    37,276 
-  Within two to five years   435,000    435,000    93,190 
Total future minimum lease payments   783,000    609,000    130,466 
Less: Future finance charges   (38,041)   (23,412)   (5,016)
    744,959    585,588    125,450 

 

These are office lease contracts for premises with a tenure of 3 years. In contrast, the Group also has certain leases with lease terms of 12 months or less. The Group applies the “short-term lease” recognition exemptions for these leases.

 

Details of the carrying amounts of right-of-use assets recognized and the movements during the year/period are disclosed in Note 7 to the unaudited interim condensed consolidated financial statements.

 

The lease liabilities at the end of the reporting period bear weighted average incremental borrowing rate of 4.31% (2022: 4.31%) per annum.

 

   December 31,
2022
   June 30,
2023
 
   RM   RM   USD 
Depreciation of right-of-use asset   238,048    158,698    33,998 
Interest expense on lease liabilities   24,768    14,629    3,134 
Lease expense not capitalised in lease liabilities:        
-
    
-
 
-expense relating to short-term lease   257,243    149,951    32,124 
Total amount recognised in profit or loss   520,059    323,278    69,256 

 

F-30

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

15 BANK AND OTHER BORROWINGS

 

 

   December 31,
2022
   June 30,
2023
 
   RM   RM   USD 
Bank borrowings               
-       Current   133,843    32,711    7,008 
-       Non-current   309,331    309,331    66,268 
Total bank borrowings   443,174    342,042    73,276 
                
Other borrowings – current   649,699    649,699    139,184 
                
Total borrowings   1,092,873    991,741    212,460 

 

Notes:

 

  (A) Bank borrowings:

 

This is made up of the following loans:

 

Loan 1 :A principal amount of RM 150,000 from a financial institution, which charged an interest rate at 5.00% per annum and repayable over 60 months in equal monthly instalments (principal and interest) of RM 3,318. The maturity date is June 2023. The loan has been fully settled by June 30, 2023.

 

Loan 2 :A principal amount of RM 200,000 from a financial institution, which charged an interest rate at 3.50% per annum and repayable over 60 months in equal monthly instalments (principal and interest) of RM 3,639. The maturity date is August 2026.

 

Loan 3 :A principal amount of RM 300,000 from a financial institution, which charged an interest rate at 3.50% per annum and repayable over 60 months in equal monthly instalments (principal and interest) of RM 6,136. The maturity date is August 2026.

 

The bank borrowings of the Group are secured against:

 

  a) Guarantee in favour of the lender by Credit Guarantee Corporation (CGC) under the portfolio guarantee scheme for 70% of the approved limit;

 

  b) Corporate guarantee in favour of the lender by a third party company which the Director have interests;

 

  c) Assignment of single premium reducing term plan issued by Sun Life Malaysia Assurance Berhad under Director of the Company, for the sum insured of not less than RM 150,000 to the lender; and

 

  d) Jointly and severally guaranteed in favour of the lender by a Director of the Company.

 

  (B) Other borrowings

 

This relates to redeemable preference shares issued by a subsidiary. The redeemable preference shares are liability in nature as the subsidiary has to redeem the shares at a particular date by paying agreed amount to the holder of the shares. Non-discretionary dividends paid on redeemable preference shares is recorded as expenses in income statement as any return paid towards liabilities is treated as an interest expense in the income statement.

 

The redeemable preference shares have a face value of RM 600,000 representing 600,000 shares at RM 1.00 each. It is redeemable at a fair value of RM 600,000

 

F-31

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

16 SHARE CAPITAL

 

   December 31,
2022
   June 30,
2023
   December 31,
2022
   June 30,
2023
 
   Number of
ordinary
shares
   Number of
ordinary
shares
   RM   RM   USD 
Paid up capital:                    
At beginning of year / period   50,000    34,412,259    220,000    13,127,427    2,812,277 
Share buyback   (50,000)   -    (220,000)   -    - 
Issuance of shares(1)   33,400,100    
-
    3,330    
-
    
-
 
Issuance of shares(2)   1,012,159    
-
    13,124,097    
-
    
-
 
Issuance of shares(3)   
-
    1,280,000    
-
    16,939,389    3,628,910 
Issuance of shares(4)   
-
    600,000    
-
    7,002,234    1,500,082 
At of end of year / period   34,412,259    36,292,259    13,127,427    37,069,050    7,941,269 

 

As of December 31, 2021, the Company has authorized 50,000 ordinary shares at USD 1.00. The paid up ordinary shares has no par value and carry one vote per share and carry a right to dividends as and when declared by the Company.

 

(1)On April 8, 2022, VCI Global Limited issued a total of 33,400,100 shares at USD 0.0001 to V Capital Kronos Berhad’s shareholders in exchange of their shares in V Capital Kronos Berhad. For the purposes of comparative value in calculating the Group’s earnings per share (“EPS”), the Group has assumed that 33,400,100 shares were outstanding from 1 January 2020 to 31 December 2021 as would be included in the denominator of the EPS calculation.

 

(2) From April 8, 2022 until November 1, 2022, a total of additional 1,012,159 ordinary shares have been issued to various investors between USD 2.50 to USD 4.00 per share.

 

(3)On April 2023, a total of 1,280,000 ordinary shares is issued in initial offering at USD4.00 per ordinary share, after deduct the IPO expenses.

 

(4)On May 31, 2023, a total of 600,000 ordinary shares is issued to Globexus Holding Corp as part of share-swap arrangement for 500 Globexus Holding Corp’s shares.

  

17 CAPITAL RESERVE

 

This is in relation to merger reserves.

 

The merger reserve represents effects of changes in ownership interests in subsidiaries when there is no change in control. Under merger accounting, the assets, liabilities, revenue, expenses and cash flows of all the entities within the Group are combined after making such adjustments as are necessary to achieve consistency of accounting policies. This manner of presentation reflects the economic substance of combining companies, which were under common control throughout the relevant period, as a single economic enterprise.

 

F-32

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

18

CURRENCY TRANSLATION RESERVE

 

The translation reserve comprises all foreign exchange differences arising from the translation of the consolidated financial statements of foreign operations whose functional currency is different from that of the Group’s presentation currency and is non-distributable.

 

19 REVENUE

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Business strategy consultancy   11,359,388    20,789,179    4,453,647 
Technology development, solutions and consultancy   9,657,906    19,733,018    4,227,387 
Interest income   
-
    1,118,641    239,645 
Others   357,338    2,822,357    604,631 
Total   21,374,632    44,463,195    9,525,310 

 

This represents revenue arising from the Group’s contracts with customers for business strategy consultancy, technology development, solution and consultancy and investment. 

 

20 OTHER INCOME

        

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Interest income   22    942    202 
Wage subsidy   29,900    
-
    
-
 
Gain on disposal of financial asset, FVTOCI   
-
    780,319    167,167 
Gain on disposal of property and equipment   1,891    
-
    
-
 
Foreign exchange gain   
-
    158,801    34,020 
Reimbursement income for expenses incurred   77,989    104,839    22,460 
Others   
-
    10,005    2,143 
Total   109,802    1,054,906    225,992 

 

The Wage Subsidy Program (“WSP”) is a financial assistance introduced in Malaysia paid to employers of every enterprise, for each worker earning RM4,000 and below and for a period of six months only. The purpose of the WSP is to help employers affected economically by the COVID-19 pandemic to continue operations and avoid the loss of jobs and income streams for all enterprises.

 

F-33

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

21 COST OF SERVICES

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Consultant fee   610,797    5,676,167    1,216,000 
IT expenses   1,495,966    180,669    38,705 
Training costs   
-
    192,398    41,217 
Others   110,166    
-
    
-
 
Total   2,216,929    6,049,234    1,295,922 

 

The “consultant fee” refers to the Group’s costs incurred from assisting its clients, in engaging all the relevant professionals required during the listing process, including but not limited to legal counsel, auditors, finance consultants, the US capital markets consultant, which such consultant fee payment shall be included and be treated as part of our consultation services for its clients during the IPO’s process.

 

22 EMPLOYEES BENEFIT EXPENSES

 

   Six months ended
June 30,
2022
  

Six months ended
June 30, 2023

 
   RM   RM   USD 
Wages and salaries   4,259,555    6,860,747    1,469,771 
Defined contribution plan   399,266    514,817    110,289 
Other short-term benefits   148,550    394,661    84,548 
Total   4,807,371    7,770,225    1,664,608 

 

Included in the employee benefit expenses is remuneration and benefits to the directors of the Company as disclosed below:

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Wages and salaries   1,178,000    1,758,118    376,640 
Defined contribution plan   141,000    118,080    25,296 
Other short-term benefits   1,660    1,159    248 
Total   1,320,660    1,877,357    402,184 

 

23 FINANCE COST

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Interest expenses on:            
Bank borrowings   8,685    1,246    267 
Operating lease obligations   
-
    14,629    3,134 
    8,685    15,875    3,401 

 

F-34

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

24 OTHER OPERATING EXPENSES

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Regulatory compliance and statutory cost   134,197    103,237    22,117 
Regulatory consultancy fee   181,409    
-
    
-
 
Cost incurred to obtain licence   
-
    12,113    2,595 
Bad debt written off   
-
    
-
    
-
 
Bank charges   15,088    24,764    5,305 
Foreign exchange loss   309,003    841,902    180,360 
Marketing expenses   231,189    990,188    212,127 
Software and website usage fee   28,847    29,628    6,347 
Office expenses   406,022    981,729    210,315 
Preliminary expenses written off   11,283    280    60 
Recruitment fees   36,392    93,101    19,945 
Travelling expenses   121,236    512,997    109,899 
Net investment loss   
-
    78,618    16,842 
Total   1,474,666    3,668,557    785,912 

 

Net investment loss is derived from the total net loss incurred from the trading of shares on recognized stock exchanges during the financial year.

 

25 PROFIT BEFORE INCOME TAX

 

In addition to the expenses disclosed in the notes to the unaudited interim condensed consolidated financial statements, profit before income tax has been arrived at after charging the following material expenses:

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Legal and professional fees   117,377    1,473,823    315,736 
Director’s fees   141,000    5,435,664    1,164,477 

 

26 INCOME TAX EXPENSE

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Current income tax expense   2,818,500    800,000    171,383 
Overprovision for tax expense   (2,534,852)   (173,857)   (37,245)
Income tax expense   283,648    626,143    134,138 

 

F-35

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

27 OPERATING LEASE

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Short-term leases   257,243    149,951    32,124 

 

The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months. Lease payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term.

 

28 SIGNIFICANT RELATED PARTY TRANSACTIONS

 

Related companies in these unaudited interim condensed consolidated financial statements refer to members of the ultimate holding company’s group of companies.

 

Some of the Group’s transactions and arrangements are between members of the Group and the effect of these on the basis determined between the parties is reflected in these unaudited interim condensed consolidated financial statements. The intercompany balances are unsecured, interest-free and repayable on demand, unless otherwise stated.

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Balance with related parties (common shareholders)            
             
Trade receivables            
V Invesco Sdn Bhd   1,305,724    55,500    11,890 
V Capital Sdn Bhd   
-
    62,257    13,337 
    1,305,724    117,757    25,227 
                
Non-trade receivables               
                
Elmu E Sdn Bhd   3,000    
-
    
-
 
Biosecure Integrators Sdn Bhd   4,000    
-
    
-
 
                
Total amount due from related parties   1,312,724    117,757    25,227 
                
Non-trade payables               
                
Hoo Voon Him   966,797    1,152,464    246,891 
Vincent Hong   -    466,783    99,999 
Noraini   472,000    
-
    
-
 
V Consortium Sdn Bhd   100,000    56,058    12,009 
V Invesco Sdn Bhd   202,574    10,000    2,142 
V Capital Sdn Bhd   1,845,275    327,307    70,119 
V Invesco Fund (L) Limited   
-
    5,093    1,091 
Amount due to related parties   3,586,646    2,017,705    432,251 

 

Amount due to related parties are not expected to be repaid within the next 12 months.

 

F-36

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

Transactions with related parties

 

The following represents the significant related party transactions for the years ended June 30, 2022 and 2023.

 

            For the period
ended
June 30,
2022
   For the period
ended
June 30,
2023
 
   Relationship  Nature  Description  RM   RM   USD 
V Capital Sdn Bhd  Common
shareholder
  Trade nature  Purchase of services   -    62,257    13,337 
V Invesco Sdn Bhd  Common
shareholder
  Trade nature  Purchase of services   -    55,500    11,890 
V Capital Sdn Bhd  Common
shareholder
  Non-trade nature  Advances paid by V Capital Sdn Bhd   (1,845,275)   (327,307)   (70,119)
V Invesco Sdn Bhd  Common
shareholder
  Non-trade nature  Advances paid by V Invesco Sdn Bhd   (202,574)   (10,000)   (2,142)
V Invesco Sdn Bhd  Common
shareholder
  Trade nature  Sale of services   1,304,478    
-
    
-
 
V Invesco Fund (L) Limited  Common
shareholder
  Non-trade nature  Advances paid by V Invesco Fund (L) Limited   
-
    (5,093)   (1,091)
V Consortium Sdn Bhd  Common
shareholder
  Non-trade nature  Advances paid by V Consortium Sdn Bhd   
-
    (56,058)   (12,009)
                         
Hoo Voon Him  Director  Non-trade nature  Advance receipt from Director   (966,797)   (1,152,464)   (246,891)
Vincent Hong  Director  Non-trade nature  Advance receipt from Director   
-
    (466,783)   (99,999)

 

29 OPERATING  SEGMENTS

 

Services from which reportable segments derive their revenues reported to the Group’s chief operating decision maker (CODM) for the purposes of resource allocation and assessment of segment performance focuses on the types of services provided. Management has chosen to organise the Group around differences in services. No operating segments have been aggregated in arriving at the reportable segments of the Group.

 

Segment revenues and results

 

   Revenue   Net profit 
   June 30,
2022
   June 30,
2023
   June 30,
2022
   June 30,
2023
 
   RM   RM   USD   RM   RM   USD 
                         
Business strategy consultancy   11,359,388    20,789,179    4,453,647    7,402,672    6,498,804    1,392,233 
Technology development, solutions and consultancy   9,657,906    19,733,018    4,227,387    5,225,361    11,772,361    2,521,982 
Others   357,338    3,940,998    844,276    1,720,928    2,284,160    489,334 
Total   21,374,632    44,463,195    9,525,310    14,348,961    20,555,325    4,403,549 
Other gains and losses                  
-
    125,326    26,848 
Interest income                  22    942    202 
Finance cost                  
-
    (1,246)   (267)
Transition loss                  (290,874)   
-
    
-
 
Incorporation costs                  (11,283)   
-
    
-
 
Profit before income tax                  14,046,826    20,680,347    4,430,332 
Income tax expense                  (283,648)   (626,143)   (134,138)
Profit for the year                  13,763,178    20,054,204    4,296,194 

 

F-37

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

The accounting policies of the reportable segments are the same as the Group’s accounting policies described in Note 2. Segment profit represents the profit earned by each segment without allocation of central administration costs, finance income, finance cost and income tax expense. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.

 

Segment assets

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Business strategy consultancy   19,043,436    34,734,543    7,441,150 
Technology development, solutions and consultancy   1,175,112    32,969,910    7,063,114 
Investments and others   12,962,743    13,662,894    2,926,989 
    33,181,291    81,367,347    17,431,253 
Unallocated assets   8,642,813    -    - 
Consolidated total assets   41,824,104    81,367,347    17,431,253 

 

No geographical segment information presented as Group’s operations are conducted predominantly in Malaysia.

 

30 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT

 

  a) Categories of financial instruments

 

The following table sets out the financial instruments as at the end of the reporting period:

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Financial assets            
Loan and receivables (including cash and bank balances)   19,733,950    70,773,813    15,161,810 
Finance assets measured at fair value through other comprehensive income   12,819,747    7,002,234    1,500,082 
Finance assets measured at fair value through profit or loss   72,295    76,044    16,291 
                
Financial liabilities               
Payable at amortised cost   15,711,758    10,246,843    2,195,171 
Borrowings and lease liabilities at amortised cost   1,837,832    1,577,329    337,910 

 

  b) Financial instruments subject to offsetting, enforceable master netting arrangements and similar agreements

 

The Group does not have any financial instruments which are subject to enforceable master netting arrangements or similar netting agreements.

 

  c) Financial risk management policies and objectives

 

The management of the Group monitors and manages the financial risks relating to the operations of the Group to ensure appropriate measures are implemented in a timely and effective manner. These risks include market risk (including foreign currency risk and interest rate risk), credit risk and liquidity risk.

 

  (i) Market risk management

 

The Group activities are exposed primarily to the financial risks of changes in foreign currency exchange rates and interest rates. Management monitors risks associated with changes in foreign currency exchanges rates and interest rates and will consider appropriate measures should the need arise.

 

There has been no significant change to the Group’s exposure to market risk or the manner in which it manages and measures the risk.

 

F-38

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

  (ii) Foreign currency risk management

 

The Group also transacts business in foreign currencies other than its functional currencies, as further disclosed below, and is therefore exposed to foreign exchange risk. 

 

The currency exposure of financial assets and financial liabilities denominated in currencies other than the Group’s functional currency is as follows:

 

   Assets   Liabilities 
   December 31,
2022
   June 30,
2023
   December 31,
2022
   June 30,
2023
 
   RM   RM   RM   RM 
Singapore Dollar   12,605    22,566    
-
    10,164 
United States Dollar   3,226,121    4,214,016    6,008,843    467,810 

 

Foreign currency sensitivity

 

The following table details the sensitivity to a 5% increase and decrease in the related foreign currencies against the functional currency (“RM”) with all the other variables held constant. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the possible change in foreign exchange rates.  The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates.

 

   December 31,
2022
   June 30,
2023
 
   RM   RM 
Singapore Dollar   630    620 
United States Dollar   (139,136)   187,310 

 

  (iii) Interest rate risk management

 

The Group is exposed to interest rate risk as the Group has bank loans which are interest bearing. The interest rates and terms of repayment of the loans are disclosed in the notes to the unaudited interim condensed consolidated financial statements. The Group currently does not have an interest rate hedging policy.

 

Interest rate sensitivity analysis

 

The sensitivity analysis below has been determined based on the exposure to interest rate for non-derivative instruments at the end of the reporting period.  A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

 

If interest rates on loans had been 50 basis points higher/lower and all other variables were held constant, the Group’s profit for the year would decrease/increase by approximately RM 50,000 (2022: RM 55,000).

 

  (iv) Credit risk management

 

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. At the end of each reporting period, the Group’s maximum exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties arises from the carrying amount of the respective recognized financial assets as stated in the statements of financial position.

 

In order to minimise credit risk, the Group has delegated its finance team to develop and maintain the Group’s credit risk grading to categorise exposures according to their degree of risk of default. The finance team uses publicly available financial information and the Group’s own historical repayment records to rate its major customers and debtors. The Group’s exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties.

 

The Group’s current credit risk grading framework comprises the following categories:

 

Category  Description  Basis for
recognising ECL
Performing  The counterparty has a low risk of default and does not have any past-due amounts  12-month ECL
Doubtful  There has been a significant increase in credit risk since initial recognition  Lifetime ECL-
not credit-impaired
In default  There is evidence indicating the asset is credit impaired  Lifetime ECL - credit impaired
Write-off  There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery  Amount is written off

 

F-39

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

For trade receivables, the Group has applied the simplified approach allowed in the accounting standard to measure the loss allowance at lifetime ECL. The Group determines the ECL on these items by using a provision matrix, estimated based on historical credit loss experience based on the past default experience of the debtor, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date. To measure the expected credit losses, trade receivables has been grouped based on shared credit risk characteristics (including high risk, normal risk and low risk type).

 

As at the end of the reporting period, the impairment allowance for ECL is disclosed in Note 10 to the unaudited interim condensed consolidated financial statements. The directors of the Group considered that the ECL for non-credit impaired trade receivables is insignificant as at the end of the reporting period.

 

  (v) Liquidity risk management

 

Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds.

 

In assessing our liquidity, we monitor and analyse our cash and cash equivalents and our operating expenditure commitments. Our liquidity needs are to meet our working capital requirements and operating expenses obligations. To date, we have financed our operations primarily through cash flows from operations, equity financing, and short-term borrowing from banks and related parties.

 

Based on the above considerations, management is of the opinion that the Group has sufficient funds to meet its working capital requirements and debt obligations, for at least the next 12 months from end of the reporting period.

 

The Group maintains sufficient cash and cash equivalents, and internally generated cash flows to finance their activities.

 

Liquidity risk analyses

 

Non-derivative financial liabilities

 

The following table details the remaining contractual maturity for non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. The adjustment column represents the possible future cash flows attributable to the instrument included in the carrying amount of the financial liabilities on the statement of financial position.

 

    Weighted     On              
    average     demand              
    effective     or within     Within        
    interest rate     1 year     2 to 5 years     Total  
    %     RM     RM     RM  
                         
As of June 30, 2023                                
Non-interest bearing    
-
      6,395,343       2,017,705       8,413,048  
Fixed interest rate     3.5-5 %     162,837       422,751       585,588  
Variable interest rate     BLR+2.6 %     32,711       309,331       342,042  
Total             6,590,891       2,749,787       9,340,678  
                                 
2022                                
Non-interest bearing    
-
      10,408,318       3,586,646       13,994,964  
Fixed interest rate     3.5-5 %     1,114,999       744,331       1,859,330  
Variable interest rate     BLR+2.6 %     16,543      
-
      16,543  
Total             11,539,860       4,330,977       15,870,837  

 

F-40

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

  (vi) Fair value of financial assets and financial liabilities

 

The management considers that the carrying amounts of Group’s financial assets and financial liabilities approximate their respective fair values due to the relatively short-term maturity of these financial instruments. The fair values of other classes of financial assets and liabilities are disclosed in the respective notes to unaudited interim condensed consolidated financial statements.

 

  (d) Capital risk management policies and objectives

 

The management manages its capital to ensure that the Group will be able to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce cost of capital.

 

The capital structure of the Group consists of equity attributable to owners of the Company, comprising issued capital, reserve and retained earnings as disclosed in the notes to unaudited interim condensed consolidated financial statements.

 

Management monitors capital based on debt-to-equity ratio. The debt-to-equity ratio is calculated as total debt divided by total equity. Total debt is calculated as borrowings plus trade and other payables

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Total debts   15,832,796    9,990,377    2,140,229 
Total equity   24,274,514    69,543,175    14,898,172 
                
Debt-to-equity %   65.22%   14.37%   14.37%

 

The Group is not subject to externally imposed capital requirements for the financial years ended December 31, 2022 and for the financial period ended June 30, 2023.

 

The Group’s overall strategy remains unchanged from prior year.

 

  (e) Concentrations

 

Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of accounts receivables. The Group conducts credit evaluations of their customers, and generally do not require collateral or other security from them. The Group evaluates their collection experience and long outstanding balances to determine the need for an allowance for doubtful accounts. The Group conducts periodic reviews of the financial condition and payment practices of their customers to minimize collection risk on accounts receivable.

 

The following table sets forth a summary of single customers who represent 10% or more of the Group’s total revenue:

 

   June 30,
2022
   June 30, 2023 
   RM   RM   USD 
Amount of the Group’s revenue:            
Customer A   19,134,493    19,712,300    4,222,948 
Customer B   9,462,273    
-
    
-
 
Customer C   -*   8,263,840    1,770,355 

 

The following table sets forth a summary of single customers who represent 10% or more of the Group’s total accounts receivable: 

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Amount of the Group’s revenue:               
Customer A   4,078,000    3,604,500    772,189 
Customer B   
-
    

-

    

-

 

 

*Revenue from relevant customer was less than 10% of the Group’s total revenue for the respective year.

 

F-41

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

  31 FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS

 

The carrying amounts and fair values of the Group’s financial instruments, other than those with carrying amounts that reasonably approximate to fair values, are as follows:

 

   Carrying amount   Fair value 
   December 31,
2022
   June 30,
2023
   December 31,
2022
   June 30,
2023
 
   RM   RM   USD   RM   RM   USD 
Financial assets                              
Financial assets at fair value through profit or loss   72,295    76,044    16,291    72,295    76,044    16,291 
Financial assets at fair value through other comprehensive income   12,819,747    7,002,234    1,500,082    12,819,747    7,002,234    1,500,082 

 

At each reporting date, management analyses the movements in the values of financial instruments and determines the major inputs applied in the valuation.

 

The valuation procedures applied include consideration of recent transactions in the same security or financial instrument, recent financing of the investee companies, economic and market conditions, current and projected financial performance of the investee companies, and the investee companies’ management team as well as potential future strategies to realize the investments.

 

Management believes that the estimated fair values resulting from the valuation technique, which are recorded in the consolidated statements of financial position, and the related changes in fair values, which are recorded in profit or loss, are reasonable, and that they were the most appropriate values at the end of the reporting periods.

 

F-42

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

Fair value hierarchy

 

The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:

 

Assets measured at fair value:

 

   Fair value measurement using 
   Quoted
prices in
active
markets
(Level 1)
   Significant
observable
inputs
(Level 2)
   Significant
unobservable
inputs
(Level 3)
   Total 
   RM   RM   RM   RM 
As at December 31, 2022                    
Financial assets at fair value through profit or loss   
-
    
          -
    72,295    72,295 
Financial assets at fair value through other comprehensive income   12,819,747    
-
    
-
    12,819,747 
As at June 30, 2023                    
Financial assets at fair value through profit or loss   
-
    
-
    76,044    76,044 
Financial assets at fair value through other comprehensive income   
-
    
-
    7,002,234    7,002,234 

 

During the year ended December 31, 2022, the financial assets at fair value through other comprehensive income has been transferred from Level 2 to Level 1 as the financial asset is quoted on Nasdaq Stock Market.

 

The movements in fair value measurements within Level 1 during the years are as follow:

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
             
Quoted/Unquoted equity shares at fair value through other comprehensive income               
At beginning of year   34,221,879    12,819,747    2,746,363 
Total unrealized gain recognized in other comprehensive income/(loss)   (21,402,132)   
-
    
-
 
Disposal   
-
    (12,819,747)   (2,746,363)
At end of year   12,819,747    
-
    
-
 

 

32 RECONCILIATIONS OF LIABILITIES ARISING FROM FINANCING ACTIVITIES

 

   At
beginning
of year
   Principal   Interest
charges
   Interest
paid
   At end of
year
 
   RM   RM   RM   RM   RM 
As of June 30, 2023                    
Bank borrowings   443,174    (101,132)   192    (192)   342,042 
Lease liabilities   744,959    (159,371)   14,629    (14,629)   585,588 
Other borrowings   649,699    
-
    
-
    
-
    649,699 
    1,837,832    (260,503)   14,821    (14,821)   1,577,329 

 

Repayment  Within
one year
   2024   2025   2026   Total 
   RM   RM   RM   RM   RM 
As of June 30, 2023                    
Bank borrowings   32,711    117,300    117,300    74,731    342,042 
Lease liabilities   162,837    422,751    
-
    
-
    585,588 
Other borrowings   649,699    
-
    
-
    
-
    649,699 
    845,247    540,051    117,300    74,731    1,577,329 

 

F-43

 

 

VCI Global Limited and Subsidiaries
Interim condensed consolidated financial statements (unaudited)

 

   At
beginning
of year
   Proceeds
from
borrowings
   Principal   Interest
charges
   Interest
paid
   At end of
year
 
   RM   RM   RM   RM   RM   RM 
As of December 31, 2022                        
Bank borrowings   542,384    
-
    (99,210)   25,560    (25,560)   443,174 
Lease liabilities   
-
    952,191    (207,232)   24,768    (24,768)   744,959 
Other borrowings   668,608    
-
    (18,909)   
-
    
-
    649,699 
    1,210,992    952,191    (325,351)   50,328    (50,328)   1,837,832 

 

Repayment  Within
one year
   2023   2024   2025   Total 
   RM   RM   RM   RM   RM 
As of December 31, 2022                    
Bank borrowings   133,843    117,300    117,300    74,731    443,174 
Lease liabilities   322,208    336,372    86,379    
-
    744,959 
Other borrowings   649,699    
-
    
-
    
-
    649,699 
    1,105,750    453,672    203,679    74,731    1,837,832 

 

33 SUBSEQUENT EVENTS

 

The Company evaluated all events and transactions that occurred from June 30, 2023 up through October 4, 2023, which is the date that these unaudited interim condensed consolidated financial statements are available for distribution. Other than the events disclosed below:

 

Generative AI Sdn Bhd, a private wholly-owned subsidiary of VCI Global Limited was incorporated on July 21, 2023 in Malaysia. Its principal activities include artificial intelligence, image processing, communications, networking and process control software.

 

On August 1, 2023, the Company issued 286,533 restricted ordinary shares, at a value of USD$3.49 per share, to ZCity Sdn Bhd, as their service consideration pursuant to a software development agreement.

 

On August 7, 2023, the Company issued 14,327 restricted ordinary shares, at a value of USD$3.49 per share, to Outside The Box Capital Inc., as their consideration pursuant to a marketing agreement.

 

F-44

 

 

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v3.23.3
Document And Entity Information
6 Months Ended
Jun. 30, 2023
Document Information Line Items  
Entity Registrant Name VCI Global Limited
Document Type 6-K
Current Fiscal Year End Date --12-31
Amendment Flag false
Entity Central Index Key 0001930510
Document Period End Date Jun. 30, 2023
Document Fiscal Year Focus 2023
Document Fiscal Period Focus Q2
Entity File Number 001-41678
v3.23.3
Interim Condensed Consolidated Statements of Financial Position
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Non-current assets      
Financial assets measured at fair value through other comprehensive income RM 7,002,234 $ 1,500,082 RM 12,819,747
Financial assets measured at fair value through profit and loss 76,044 16,291 72,295
Property and equipment 2,081,771 445,976 1,551,579
Right-of-use of assets 555,445 118,992 714,143
Deferred initial public offering expense 6,564,162
Deferred tax assets 339,650 72,763 339,650
Total non-current assets 10,055,144 2,154,104 22,061,576
Current assets      
Trade and other receivables 55,983,342 11,993,261 15,759,533
Amount due from related parties 7,000
Cash and bank balances 15,328,861 3,283,888 3,995,995
Total current assets 71,312,203 15,277,149 19,762,528
Total assets 81,367,347 17,431,253 41,824,104
Current liabilities      
Trade and other payables 6,395,343 1,370,068 10,408,318
Bank and other borrowings 682,410 146,192 783,542
Lease liabilities 162,837 34,884 322,208
Income tax payable 1,833,795 392,852 1,716,794
Total current liabilities 9,074,385 1,943,996 13,230,862
Non-current liabilities      
Bank and other borrowings 309,331 66,268 309,331
Lease liabilities 422,751 90,566 422,751
Amount due to related parties 2,017,705 432,251 3,586,646
Total non-current liabilities 2,749,787 589,085 4,318,728
Total liabilities 11,824,172 2,533,081 17,549,590
Capital and reserves      
Share capital 37,069,050 7,941,269 13,127,427
Capital reserve 6,532,560 1,399,465 6,532,560
Currency translation reserve 1,272,834 272,678
Retained earnings 27,459,238 5,882,566 6,255,851
Attributable to equity owners of the Company 72,333,682 15,495,978 25,915,838
Non-controlling interests (2,790,507) (597,806) (1,641,324)
Total equity 69,543,175 14,898,172 24,274,514
Total equity and liabilities RM 81,367,347 $ 17,431,253 RM 41,824,104
v3.23.3
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited)
6 Months Ended
Jun. 30, 2023
MYR (RM)
RM / shares
shares
Jun. 30, 2023
USD ($)
$ / shares
shares
Jun. 30, 2022
MYR (RM)
RM / shares
shares
Profit Before Income Tax [Abstract]      
Revenue RM 44,463,195 $ 9,525,310 RM 15,931,394
Revenue – related party 5,443,238
Total revenue 44,463,195 9,525,310 21,374,632
Other income 1,054,906 225,992 109,802
Fair value adjustment on financial assets measured at fair value through profit and loss 1,679,842
Cost of services (6,049,234) (1,295,922) (2,216,929)
Depreciation (274,425) (58,790) (11,203)
Directors’ fees (5,435,664) (1,164,477) (141,000)
Employee benefits expenses (7,770,225) (1,664,608) (4,807,371)
Impairment allowance on trade receivables (183,546)
Rental expenses (149,951) (32,124) (156,673)
Legal and professional fees (1,473,823) (315,736) (117,377)
Finance cost (15,875) (3,401) (8,685)
Other operating expenses (3,668,557) (785,912) (1,474,666)
Profit before income tax 20,680,347 4,430,332 14,046,826
Income tax expense (626,143) (134,138) (283,648)
Profit for the period 20,054,204 4,296,194 13,763,178
Other comprehensive income (loss):      
Exchange differences on translating foreign operations 1,272,834 272,678
Fair value adjustment on financial assets measured at fair value through other comprehensive income (4,199,770)
Total comprehensive income for the period 21,327,038 4,568,872 9,563,408
Profit attributable to:      
Equity owners of the Company 21,203,387 4,542,382 13,568,156
Non-controlling interests (1,149,183) (246,188) 195,022
Total 20,054,204 4,296,194 13,763,178
Total comprehensive income attributable to:      
Equity owners of the Company 22,476,221 4,815,060 9,368,386
Non-controlling interests (1,149,183) (246,188) 195,022
Total comprehensive income/(loss) for the year RM 21,327,038 $ 4,568,872 RM 9,563,408
Earnings per share - Basic and diluted (in Ringgits per share and Dollars per share) | (per share) RM 0.55 $ 0.12 RM 0.4
Weighted average number of ordinary shares used in computing basic earnings (in Shares) 36,292,259 36,292,259 33,636,100
Weighted average number of ordinary shares used in computing diluted earnings (in Shares) 36,292,259 36,292,259 33,636,100
v3.23.3
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals)
6 Months Ended
Jun. 30, 2023
RM / shares
Jun. 30, 2023
$ / shares
Jun. 30, 2022
RM / shares
Profit Before Income Tax [Abstract]      
Earnings per share - Diluted | (per share) RM 0.55 $ 0.12 RM 0.40
v3.23.3
Interim Condensed Consolidated Statements of Changes in Equity (Unaudited)
Share capital
MYR (RM)
Capital reserves
MYR (RM)
Foreign exchange reserves
MYR (RM)
Retained earnings
MYR (RM)
Total
MYR (RM)
Non- controlling interests
MYR (RM)
MYR (RM)
USD ($)
Balance at Dec. 31, 2021 RM 220,000 RM 6,532,566 RM 12,981,936 RM 19,734,502 RM (371,259) RM 19,363,243  
Profit for the period 13,568,156 13,568,156 195,022 13,763,178  
Other comprehensive loss (4,199,770) (4,199,770) (4,199,770)  
Total comprehensive income for the period 9,368,386 9,368,386 195,022 9,563,408  
Issuance of share capital 2,615,477 2,615,477 2,615,477  
Balance at Jun. 30, 2022 2,835,477 6,532,566 22,350,322 31,718,365 (176,237) 31,542,128  
Balance at Jun. 30, 2023 37,069,050 6,532,560 1,272,834 27,459,238 72,333,682 (2,790,507) 69,543,175 $ 14,898,172
Balance at Dec. 31, 2022 13,127,427 6,532,560 6,255,851 25,915,838 (1,641,324) 24,274,514  
Profit for the period 21,203,387 21,203,387 (1,149,183) 20,054,204 4,296,194
Exchange differences on translating foreign operations 1,272,834 1,272,834 1,272,834  
Other comprehensive loss            
Total comprehensive income for the period 1,272,834 21,203,387 22,476,221 (1,149,183) 21,327,038 4,568,872
Issuance of ordinary shares in initial public offering, net of issuance costs 16,939,389 16,939,389 16,939,389  
Issuance of ordinary shares via share-swap arrangement 7,002,234 7,002,234 7,002,234  
Balance at Jun. 30, 2023 RM 37,069,050 RM 6,532,560 RM 1,272,834 RM 27,459,238 RM 72,333,682 RM (2,790,507) RM 69,543,175 $ 14,898,172
v3.23.3
Interim Condensed Consolidated Statements of Cash Flows (Unaudited)
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
MYR (RM)
Operating activities      
Profit before income tax RM 20,680,347 $ 4,430,332 RM 14,046,826
Adjustments for:      
Impairment allowance on trade receivable 183,546
Unrealised foreign exchange loss 805,197 172,498
Depreciation of property and equipment 115,727 24,792 11,203
Depreciation of right-of-use of assets 158,698 33,998
Fair value adjustment on financial assets measured at fair value through profit and loss (1,679,842)
Gain on disposal of investment (780,319) (167,167)
Gain on disposal of property and equipment (1,891)
Interest expense 15,875 3,401 8,685
Interest income (942) (202) (22)
Operating cash flow before movement in working capital 20,994,583 4,497,652 12,568,505
Trade and other receivables (40,216,809) (8,615,611) (8,629,924)
Trade and other payables 2,551,187 546,538 (4,804,822)
Cash used in operations (16,671,039) (3,571,421) (866,241)
Interest received 22
Income tax paid (509,142) (109,073) 224,626
Net cash used in operating activities (17,180,181) (3,680,494) (641,593)
Investing activities      
Purchase of property and equipment (645,919) (138,375) (33,896)
Proceeds from disposal of property and equipment 11,706
Interest paid
Interest received 942 202
Acquisition of financial assets measured at fair value through profit and loss (156,120)
Proceeds from disposal of financial assets measured at fair value through other comprehensive income 13,600,066 2,913,530
Net cash generated from / (used in) investing activities 12,955,089 2,775,357 (178,310)
Financing activities      
Proceeds from issuance of shares 2,615,477
Proceeds from initial public offering, net of issuance costs 17,457,899 3,739,990
Interest paid (15,875) (3,401)
Repayments of other borrowings (101,132) (21,665) (54,781)
Repayment of advances to related parties (1,568,941) (336,113) (3,149,847)
Repayment of operating leases (159,371) (34,142)
Net cash generated from / (used in) financing activities 15,612,580 3,344,669 (589,151)
Net increase / (decrease) in cash and cash equivalents 11,387,488 2,439,532 (1,409,054)
Effect of currency translation on cash and cash equivalents (54,622) (11,702)
Cash and bank balances at beginning of the period 3,995,995 856,058 3,122,947
Cash and bank balances at end of the period RM 15,328,861 $ 3,283,888 RM 1,713,893
v3.23.3
Organization And Principal Activities
6 Months Ended
Jun. 30, 2023
Organization And Principal Activities [Abstract]  
ORGANIZATION AND PRINCIPAL ACTIVITIES
1 ORGANIZATION AND PRINCIPAL ACTIVITIES

 

Organization and reorganization

 

VCI Global Limited was incorporated in the British Virgin Islands on April 29, 2020. The registered office of the Company is situated at Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, British Virgin Islands. The principal place of business of the Company is situation at B03-C-8, Menara 3A, KL Eco City, No.3 Jalan Bangsar, 59200 Kuala Lumpur, Malaysia.

 

The Group structure which represents the operating subsidiaries and dormant companies as the reporting date is as follow: 

 

 

 

The Company and its subsidiaries are in the table as follows: 

 

      Percentage of effective ownership      
Name  Date of
incorporation
  June 30,
2023
  31 December
2022
  Place of
incorporation
  Principal activities
      %  %      
VCI Global Limited  29.04.2020  100  100  British Virgin Island  Holding company
V Capital Kronos Berhad  01.09.2020  100  100  Malaysia  Holding company
V Capital Venture Sdn Bhd  19.08.2014  100  100  Malaysia  Provision of corporate and business advisory services in corporate finance, corporate structuring and restructuring, listings on recognised stock exchanges, and fintech advisory
Accuventures Sdn Bhd  22.06.2015  100  80  Malaysia  Provision of technology development, computer software programming and holding company.
Credilab Sdn Bhd  26.10.2020  100  80  Malaysia  Carry on licensed money lending activities, consulting, information technology development, and computer software programming
V Capital Advisory Sdn Bhd  12.02.2018  100  100  Malaysia  Provision of corporate and business advisory in relation to corporate listing exercise, equity investment, corporate restructuring, merger and acquisition and corporate finance.
V Capital Quantum Sdn Bhd  18.01.2018  100  100  Malaysia  Provision of information technology development, business consultancy services and holding company.
V Capital Consulting Limited  01.03.2016  100  100  British Virgin Island  Provision of corporate and business advisory services in corporate finance, corporate structuring and restructuring, listings on recognised stock exchanges, and fintech advisory
Generative AI Sdn Bhd  21.07.2023  100  -  Malaysia  Provision of Artificial Intelligence, image processing, communication, networking, & process control software services.
Imej Jiwa Communications Sdn Bhd  29.10.2012  100  100  Malaysia  Provision of investor relation consultation services.
AB Management and Consultancy Services Sdn Bhd  05.04.2020  80  80  Malaysia  Holding company
Elmu Education Group Sdn Bhd  03.12.2020  56  56  Malaysia  Education and training services
Elmu V Sdn Bhd  18.05.2021  69.2  69.2  Malaysia  Education and training services
Elmu Higher Education Sdn Bhd  24.05.2021  56  56  Malaysia  Education and training services
V Capital Real Estate Sdn Bhd  05.07.2021  100  100  Malaysia  Provision of consultancy services in relation to real estate
V Capital Robotics Sdn Bhd  12.10.2021  100  100  Malaysia  Dormant
VCI Energy Sdn Bhd (F.K.A TGI V Sdn Bhd)  12.11.2021  100  100  Malaysia  Dormant
VCIG Limited  29.04.2020  100  100  British Virgin Island  Dormant
V Galactech Sdn Bhd  12.01.2022  100  100  Malaysia  Provision of information technology development
VC Acquisition Ltd  04.01.2022  100  100  Malaysia  Dormant
VC Acquisition II Ltd  04.01.2022  100  100  British Virgin Island  Dormant

 

Principal activities

 

The Company is a holding company. The principal activities of the Company and its subsidiaries (collectively referred to as the “Company” or “the Group”) are the provision of business strategy consultancy and technology development solution consultancy. The Company is headquartered in Malaysia and conducts its primary operations through its significant direct and indirectly held subsidiaries that are incorporated and domiciled in Malaysia, namely V Capital Kronos Berhad, V Capital Quantum Sdn. Bhd., and V Capital Consulting Limited where was incorporated in the British Virgin Islands.

v3.23.3
Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

BASIS OF ACCOUNTING

 

The unaudited interim condensed consolidated financial statements have been prepared in accordance with the historical cost basis, except as disclosed in the accounting policies below, and are drawn up in accordance with the provisions of the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

 

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

 

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability which market participants would take into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these unaudited interim condensed consolidated financial statements is determined on such a basis.

 

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

 

  Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

 

  Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

 

  Level 3 inputs are unobservable inputs for the asset or liability.

 

ADOPTION OF NEW AND REVISED STANDARDS

 

At the date of authorisation of these unaudited interim condensed consolidated financial statements, management anticipates that the adoption of the new and revised IFRSs and amendments to IFRS in future periods will not have a material impact on the unaudited interim condensed consolidated financial statements of the Group in the period of their initial adoption.

 

NEW AND REVISED IFRS IN ISSUE BUT NOT YET EFFECTIVE

 

At the date of authorisation of these unaudited interim condensed consolidated financial statements, the Group has not adopted the new and revised IFRS, IFRS INT and amendments to IFRS that have been issued but are not yet effective to them. The Group do not anticipate that the adoption of these new and revised IFRS pronouncements in future periods will have a material impact on the Group’s unaudited interim condensed consolidated financial statements in the period of their initial adoption.

 

The preparation of these unaudited interim condensed consolidated financial statements in conformity with IFRS requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. The areas involving a higher degree of judgement or complexity, or areas where estimates and assumptions are significant to the unaudited interim condensed consolidated financial statements are disclosed in Note 3.

 

BASIS OF CONSOLIDATION 

 

  (a) Consolidation

 

As the Group were under same control of the controlling shareholders and their entire equity interests were also ultimately held by the controlling shareholders immediately prior to the group reorganization, the unaudited interim condensed consolidated statements of profit or loss and other comprehensive income, unaudited interim condensed consolidated statements of changes in equity and unaudited interim condensed consolidated statements of cash flows statements are prepared as if the current group structure had been in existence throughout the period ended June 30, 2023 and 2022, or since the respective dates of incorporation/establishment of the relevant entity, where this is a shorter period. The consolidated statements of financial position as at June 30, 2022 and 2023 present the assets and liabilities of the aforementioned companies now comprising the Group which had been incorporated/established as at the relevant balance sheet date as if the current group structure had been in existence at those dates based on the same control aforementioned. The Group eliminates all significant intercompany balances and transactions in its consolidated unaudited interim condensed consolidated financial statements.

 

Subsidiary corporations are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiary corporations are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on that control ceases.

 

In preparing the unaudited interim condensed consolidated financial statements, transactions, balances and unrealized gains on transactions between group entities are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment indicator of the transferred asset. Accounting policies of subsidiary corporations have been changed where necessary to ensure consistency with the policies adopted by the Group.

 

Non-controlling interests comprise the portion of a subsidiary corporation’s net results of operations and its net assets, which is attributable to the interests that are not owned directly or indirectly by the equity holders of the Company. They are shown separately in the consolidated statements of comprehensive income, statements of changes in equity, and statements of financial position. Total comprehensive income is attributed to the non-controlling interests based on their respective interests in a subsidiary, even if this results in the non-controlling interests having a deficit balance. 

 

Acquisition of entities under an internal reorganization scheme does not result in any change in economic substance. Accordingly, the unaudited interim condensed consolidated financial statements of the Group are a continuation of the acquired entities and is accounted for as follows:

 

  (i) The results of entities are presented as if the internal reorganization occurred from the beginning of the earliest period presented in the unaudited interim condensed consolidated financial statements;

 

  (ii) The Group will consolidate the assets and liabilities of the acquired entities at the pre-combination carrying amounts. No adjustments are made to reflect fair values, or recognize any new assets or liabilities, at the date of the internal reorganization that would otherwise be done under the acquisition method; and

 

  (iii) No new goodwill is recognized as a result of the internal reorganization. The only goodwill that is recognized is the existing goodwill relating to the combining entities. Any difference between the consideration paid/transferred and the equity acquired is reflected within equity as merger reserve or deficit.

 

  (b) Acquisitions

 

The acquisition method of accounting is used to account for business combinations entered into by the Group.

 

The consideration transferred for the acquisition of a subsidiary corporation or business comprises the fair value of the assets transferred, the liabilities incurred, and the equity interests issued by the Group. The consideration transferred also includes any contingent consideration arrangement and any pre-existing equity interest in the subsidiary measured at their fair values at the acquisition date.

 

Acquisition-related costs are expensed as incurred.

 

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.

 

On an acquisition-by-acquisition basis, the Group recognizes any non-controlling interest in the acquiree at the date of acquisition either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets.

 

The excess of (a) the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the (b) fair value of the identifiable net assets acquired is recorded as goodwill. 

 

  (c) Disposals

 

When a change in the Group’s ownership interest in a subsidiary corporation result in a loss of control over the subsidiary corporation, the assets and liabilities of the subsidiary corporation including any goodwill are derecognized. Amounts previously recognized in other comprehensive income in respect of that entity are also reclassified to profit or loss or transferred directly to retained earnings if required by a specific Standard.

 

Any retained equity interest in the entity is remeasured at fair value. The difference between the carrying amount of the retained interest at the date when control is lost, and its fair value is recognized in profit or loss.

 

  (d) Transactions with non-controlling interests

 

Changes in the Group’s ownership interest in a subsidiary corporation that do not result in a loss of control over the subsidiary corporation are accounted for as transactions with equity owners of the Company. Any difference between the change in the carrying amounts of the non-controlling interest and the fair value of the consideration paid or received is recognized within equity attributable to the equity holders of the Company.

 

CONVENIENCE TRANSLATION

 

Translations of amounts in the unaudited interim condensed consolidated financial statements from RM into USD as of and for the year ended June 30, 2023 are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 = RM 4.6679, as published in H.10 statistical release of the United States Federal Reserve Board. No representation is made that the RM amounts could have been, or could be, converted, realized or settled into USD at such rate or at any other rate. 

 

FINANCIAL ASSETS

 

  (a) Classification and measurement

 

The Group classifies its financial assets at fair value through other comprehensive income, fair value through profit and loss and amortized cost.

 

The classification depends on the Group’s business model for managing the financial assets as well as the contractual terms of the cash flows of the financial assets.

 

Financial assets at fair value through other comprehensive income (“FVTOCI”) are equity securities which are not held for trading but more for strategic investments or debt securities where contractual cash flows are solely principal and interest and the objective of the Group’s business model is achieved both by collecting contractual cash flow and selling financial assets.

 

On initial recognition, the Group may make an irrevocable election (on an instrument-by-instrument basis) to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognised by an acquirer in a business combination.

 

Investments in equity instruments as at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income (“OCI”) and accumulated in the retained earnings. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, and will be transferred to retained earnings. 

 

The Group reclassifies debt instruments when and only when its business model for managing those assets changes.

 

At subsequent measurement - Debt instrument

 

Debt instruments mainly comprise of cash and cash equivalents and other receivables (excluding prepayments).

 

Debt instruments that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in interest income using the effective interest rate method. 

 

The Group recognises a loss allowance for ECL on financial assets which are subject to impairment assessment under IFRS 9. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognises lifetime ECL for accounts receivables. The ECL on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. For all other financial instruments, the Group measures the loss allowance equal to 12-month ECL, unless when there has a significant increase in credit risk since initial recognition, the Group recognises lifetime ECL. The assessment of whether lifetime ECL should be recognised is based on significant increase in the likelihood or risk of a default occurring since initial recognition.

 

Significant increase in credit risk

 

In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. Forward-looking information considered includes the future prospects of the industries in which the Group’s debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the Group’s operations.

 

In particular, the following information is taken into account when assessing whether credit risk has increased significantly:

 

  an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating;

 

  significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, the credit default swap prices for the debtor;

 

  existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations;

 

  an actual or expected significant deterioration in the operating results of the debtor;

 

  significant increases in credit risk on other financial instruments of the same debtor;

 

  an actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations.

 

Irrespective of the outcome of the above assessment, the Group presumes that the credit risk has increased significantly since initial recognition when contractual payments are more than 60 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise.

 

  (b) Recognition and derecognition

 

Regular way purchases and sales of financial assets are recognized on trade date – the date on which the Group commits to purchase or sell the asset.

 

Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

 

On disposal of a debt instrument, the difference between the carrying amount and the sale proceeds is recognized in profit or loss.

 

FINANCIAL LIABILITIES AND EQUITY INSTRUMENTS

 

Classification as debt or equity

 

Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

 

Equity instruments

 

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue costs.

 

Financial liabilities

 

Except for derivative financial instruments which are stated at fair value through profit or loss, all other financial liabilities are subsequently measured at amortised cost using the effective interest method.

 

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

 

Derecognition of financial liabilities

 

The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

 

Offsetting financial instruments

 

Financial assets and liabilities are offset, and the net amount reported in the balance sheet when there is a legally enforceable right to offset and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

 

PROPERTY AND EQUIPMENT

 

  (a) Measurement

 

  (i) Property and equipment

 

Property and equipment are initially recognized at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

 

  (ii) Components of costs

 

The cost of an item of property and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

 

  (b) Depreciation

 

Depreciation on other items of property and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives as followed;

 

Office renovation - 10 years
Office equipment - 5 years
Furniture and fittings - 5 years
Electrical and fittings - 10 years
Right of use asset - 3 years

 

No depreciation is charged on construction in progress.

 

The residual values estimated useful lives and depreciation method of property and equipment are reviewed, and adjusted as appropriate, at each balance sheet date. The effects of any revision are recognized in profit or loss when the changes arise.

 

  (c) Subsequent expenditure

 

Subsequent expenditure relating to property and equipment that has already been recognized is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. All other repair and maintenance expenses are recognized in profit or loss when incurred.

 

  (d) Disposal

 

On disposal of an item of property and equipment, the difference between the disposal proceeds and its carrying amount is recognized in profit or loss.

 

TRADE AND OTHER RECEIVABLES

 

A receivable is recognised when the Group has an unconditional right to receive consideration. A right to receive consideration is unconditional if only the passage of time is required before payment of that consideration is due. If revenue has been recognised before the Group has an unconditional right to receive consideration, the amount is presented as a contract asset. Trade receivables that do not contain a significant financing component are initially measured at their transaction price. Trade receivables that contain a significant financing component and other receivables are initially measured at fair value plus transaction costs. All receivables are subsequently stated at amortised cost, using the effective interest method and including an allowance for credit losses.

 

IMPAIRMENT OF NON-FINANCIAL ASSETS

 

Property and equipment are tested for impairment whenever there is any objective evidence or indication that these assets may be impaired.

 

For the purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the Cash Generating units (“CGU”) to which the asset belongs.

 

If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognized as an impairment loss in profit or loss.

 

An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

 

A reversal of impairment loss for an asset other than goodwill is recognized in profit or loss.

 

TRADE AND OTHER PAYABLES

 

Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. They are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). Otherwise, they are presented as non-current liabilities.

 

Trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method.

 

CONTRACT LIABILITIES

 

A contract liability is recognised when the customer pays non-refundable consideration before the Group recognises the related revenue. A contract liability would also be recognised if the Group has an unconditional right to receive non-refundable consideration before the Group recognises the related revenue. In such cases, a corresponding receivable would also be recognised. Contract liabilities are recognized as revenue when the Group satisfied its performance obligation.

 

BANK AND OTHER BORROWINGS

 

Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least 12 months after the balance sheet date, in which case they are presented as non-current liabilities.

 

  (a) Borrowings - Borrowings are initially recognized at fair value (net of transaction costs) and subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

 

  (b) Borrowing costs - Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

 

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

 

DEFERRED REVENUE

 

Deferred revenue refers to advance payment from clients for services that have not yet been rendered. Under the accrual basis of accounting, the Group records this payment as a liability. Once the services have been rendered, the liability is reversed and revenue is recorded instead.

 

LEASES

 

When the Group is the lessee

 

At the inception of the contract, the Group assesses if the contract contains a lease. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Reassessment is only required when the terms and conditions of the contract are changed.

 

  Right-of-use assets

 

The Group recognizes a right-of-use asset and lease liability at the date which the underlying asset is available for use. Right-of-use assets are measured at cost which comprises the initial measurement of lease liabilities adjusted for any lease payments made at or before the commencement date and lease incentive received. Any initial direct costs that would not have been incurred if the lease had not been obtained are added to the carrying amount of the right- of-use assets.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

 

Right-of-use assets are presented within “Property and equipment”.

 

  Lease liabilities

 

The initial measurement of a lease liability is measured at the present value of the lease payments discounted using the implicit rate in the lease, if the rate can be readily determined. If that rate cannot be readily determined, the Group shall use its incremental borrowing rate.

 

Lease payments include the following:

 

  - Fixed payment (including in-substance fixed payments), less any lease incentives receivables;

 

  - Variable lease payment that are based on an index or rate, initially measured using the index or rate as at the commencement date;

 

  - Amount expected to be payable under residual value guarantees;

 

  - The exercise price of a purchase option if is reasonably certain to exercise the option; and

 

  - Payment of penalties for terminating the lease, if the lease term reflects the Group exercising that option.

 

For contracts that contain both lease and non-lease components, the Group allocates the consideration to each lease component on the basis of the relative stand-alone price of the lease and non-lease component. The Group has elected to not separate lease and non-lease component for property leases and account these as one single lease component.

 

Lease liability is measured at amortized cost using the effective interest method. Lease liability shall be remeasured when:

 

  - There is a change in future lease payments arising from changes in an index or rate;

 

  - There is a change in the Group’s assessment of whether it will exercise an extension option; or

 

  - There is modification in the scope or the consideration of the lease that was not part of the original term.

 

Lease liability is remeasured with a corresponding adjustment to the right-of-use assets, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

 

  Short-term and low-value leases

 

The Group has elected to not recognized right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months or less and leases of low-value leases. Lease payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term.

 

  Variable lease payments

 

Variable lease payments that are not based on an index or a rate are not included as part of the measurement and initial recognition of the lease liability. The Group shall recognize those lease payments in profit or loss in the periods that triggered those lease payments.

 

EMPLOYEE BENEFITS

 

Employee benefits are recognized as an expense, unless the cost qualifies to be capitalized as an asset.

 

  (a) Defined contribution plans

 

Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into separate entities such as the Employees Provident Fund on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid.

 

  (b) Employee leave entitlement

 

Employee entitlements to annual leave are recognized when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date.

 

PROVISIONS

 

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.  Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

 

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

 

REVENUE RECOGNITION

 

Revenue is recognised to depict the transfer of promised services to clients at an amount that reflects the consideration to which an entity expects to be entitled in exchange for those services. Specifically, the Group uses a five-step approach to recognise revenue:

 

Step 1: Identify the contract(s) with a client

 

Step 2: Identify the performance obligations in the contract

 

Step 3: Determine the transaction price

 

Step 4: Allocate the transaction price to the performance obligations in the contract

 

Step 5: Recognise revenue when (or as) the Group satisfies a performance obligation

 

The Group recognises revenue when (or as) a performance obligation is satisfied, i.e., when “control” of the services underlying the particular performance obligations is transferred to clients.

 

A performance obligation represents a service (or a bundle of services) that is distinct or a series of distinct services that are substantially the same.

 

Control is transferred overtime and revenue is recognised overtime by reference to the progress towards complete satisfaction of the relevant performance obligation if one of the following criteria is met:

 

  the client simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs;

 

  the Group’s performance creates or enhances an asset that the client controls as the asset is created or enhanced; or

 

  the Group’s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.

 

Otherwise, revenue is recognised at a point in time when the customer obtains control of the distinct service. 

 

Advance payments received from clients are recognized as contract liabilities as the Group has not yet satisfied its performance obligation. Contract liabilities are recognized as revenue when the Group satisfied its performance obligation. The Group may receive payment for service prior to, or after it satisfies the performance obligation under a service agreement.

 

  a) Business Strategy Consultancy

 

Business strategy consultancy services primarily included listing advisory and solutions, investors relations and boardroom strategies consultancy. The revenues generated from business strategy consultancy services are generally based on the fixed fee billing arrangements that require the clients to pay a pre-established fee in exchange for a predetermined set of professional services. The clients agree to pay a fixed fee periodically over the contract terms as specified in the service agreements.

 

Our contracts from business strategy consultancy are typically less than a year in duration. Revenues are generally recognised over time. When contractual billings represent an amount that corresponds directly with the value provided to the client, revenues are recognised as amount become billable in accordance with the contract terms. Revenues from fixed-priced contracts are generally recognised using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the Company performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to client.

 

  b) Technology Development, Solutions and Consultancy

 

Technology development, solutions and consultancy primarily included digital development, fintech solution and software solutions.

 

Technology Development

 

The contract is typically fixed priced and does not provide any post contract client support or upgrades. The Group designs system based on clients’ specific needs which require the Group to perform services including design/redesign, development, and integration. These services also require significant customization. Upon delivery of the services, client acceptance is generally required. The Group assesses that software development services is considered as a performance obligation. The duration of the development period is usually six months to two years.

 

The Group’s system development service revenues are generated primarily from contracts with clients across sectors. The contracts contain negotiated billing terms which generally include multiple payment phases throughout the contract term and a portion of contract amount usually is billed upon the completion of the related projects. Pursuant to the contract terms, the Group has enforceable right on payments for the work performed.

 

The Group’s revenue from technology development contracts is generally recognized over time. The Group uses an input method based on cost incurred as the Group believes that this method most accurately reflects the Group’s progress toward satisfaction of the performance obligation, which usually takes six months to two years. Under this method, the Group could appropriately measure the fulfilment of a performance obligation. Assumptions, risks, and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables, and deferred revenues at each reporting period.

 

Solutions and Consultancy

 

Revenue from solutions and consulting services is primarily comprised of fixed-fee contracts, which require the Group to provide professional solutions and consulting services over contract terms beginning on the commencement date of each contract, which is the date its service is made available to clients. Billings to the clients are generally on a monthly or quarterly basis over the contract term, which is typically 6 to 12 months. The solutions and consulting services contracts typically include a single performance obligation. The revenue from solutions and consulting services is recognized over the contract term.

 

  c) Interest income received

 

Interest income is received from the money lending other entities and individuals. Interest income is recognised on a time-proportion basis using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cashflow discounted at original effective interest rate of the instrument, and thereafter amortising the discount as interest income.

 

GOVERNMENT GRANTS AND SUBSIDIES

 

Grants from the government are recognized as a receivable at their fair value when there is reasonable assurance that the grant will be received and the Group will comply with all the attached conditions.

 

Government grants receivable are recognized as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are shown separately as other income.

 

Grants related to assets are presented as deferred income under trade and other payables.

 

CASH AND CASH EQUIVALENTS

 

For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents include cash on hand, deposits with financial institutions which are subject to an insignificant risk of change in value.

 

SHARE CAPITAL

 

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are deducted against the share capital account.

 

INCOME TAX

 

Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a tax authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

 

Deferred income tax is recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

 

A deferred income tax liability is recognized on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

 

A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized.

 

Deferred income tax is measured:

 

  (i) at the tax rates that are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date; and

 

  (ii) based on the tax consequence that will follow from the manner in which the Group expects, at the balance sheet date, to recover or settle the carrying amounts of its assets and liabilities except for investment properties. Investment property measured at fair value is presumed to be recovered entirely through sale.

 

Current and deferred income taxes are recognized as income or expense in profit or loss, except to the extent that the tax arises from a business combination or a transaction which is recognized directly in equity. Deferred tax arising from a business combination is adjusted against goodwill on acquisition.

 

The Group accounts for investment tax credits (for example, productivity and innovation credit) similar to accounting for other tax credits where a deferred tax asset is recognized for unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax credits can be utilized.

 

FOREIGN CURRENCY TRANSACTIONS

 

  (a) Functional and presentation currency

 

Items included in the unaudited interim condensed consolidated financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The unaudited interim condensed consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is the functional currency of the Company and the presentation currency of the Group.

 

The value of foreign currencies including, the US Dollar (“USD”), may fluctuate against the RM. Any significant variations of the aforementioned currencies relative to the RM may materially affect the Group’s financial condition in terms of reporting in RM. The following table outlines the currency exchange rates that were used in preparing the accompanying consolidated unaudited interim condensed consolidated financial statements:

 

   December 31,   June 30, 
   2022   2022   2023 
RM to USD at the end of the period   4.4025    4.4075    4.6679 
RM to USD Average rate   4.3983    4.2867    4.4863 

 

  (b) Transactions and balances

 

Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates at the dates of the transactions. Currency exchange differences resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the balance sheet date are recognized in profit or loss. Monetary items include primarily financial assets (other than equity investments), contract assets and financial liabilities. However, in the unaudited interim condensed consolidated financial statements, currency translation differences arising from borrowings in foreign currencies and net investment in foreign operations, are recognized in other comprehensive income and accumulated in the currency translation reserve.

 

When a foreign operation is disposed of or any loan forming part of the net investment of the foreign operation is repaid, a proportionate share of the accumulated currency translation differences is reclassified to profit or loss, as part of the gain or loss on disposal.

 

Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at the date when the fair values are determined.

 

  (c) Translation of Group entities’ financial statements

 

The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

 

  (i) assets and liabilities are translated at the closing exchange rates at the reporting date;

 

  (ii) income and expenses are translated at average exchange rates (unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated using the exchange rates at the dates of the transactions); and

 

  (iii) all resulting currency translation differences are recognized in other comprehensive income and accumulated in the currency translation reserve. These currency translation differences are reclassified to profit or loss on disposal or partial disposal with loss of control of the foreign operation.

 

Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and liabilities of the foreign operations and translated at the closing rates at the reporting date.

 

RELATED PARTIES

 

(a)A person, or a close member of that person’s family, is related to the Group if that person:

 

(i)has control or joint control over the Group;

 

  (ii) has significant influence over the Group; or

 

  (iii) is a member of the key management personnel of the Group or the Group’s parent. 

 

  (b) An entity is related to the Group if any of the following conditions applies:

 

(i)The entity and the group are members of the same Group (which means that each parent, subsidiary and fellow subsidiary is related to the others).

 

  (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a Group of which the other entity is a member). 

 

  (iii) Both entities are joint ventures of the same third party.

 

  (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. 

 

  (v) The entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the group. 

 

  (vi) The entity is controlled or jointly controlled by a person identified in (a).

 

  (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). 

 

  (viii) The entity, or any member of a Group of which it is a part, provides key management personnel services to the Group or to the Group’s parent. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.  

 

EARNINGS PER SHARE

 

The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted-average number of ordinary shares outstanding during the year, adjusted for own shares held, if any. Diluted earnings per share is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted-average number of ordinary shares outstanding, adjusted for own shares held, if any, for the effects of all dilutive potential ordinary shares.

 

SEGMENT REPORTING

 

Operating segments, and the amounts of each segment item reported in the unaudited interim condensed consolidated financial statements, are identified from the financial information provided regularly to the Group’s most senior executive management for the purposes of allocating resources to, and assessing the performance of, the Group’s various lines of business and geographical locations.

 

Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments which are not individually material may be aggregated if they share a majority of these criteria.

v3.23.3
Critical Accounting Judgements and Key Sources of Estimation Uncertainty
6 Months Ended
Jun. 30, 2023
Critical Accounting Judgements and Key Sources of Estimation Uncertainty [Abstract]  
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
3 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

 

In the application of the Group’s accounting policies, which are described in Note 2 to the unaudited interim condensed consolidated financial statements, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods.

 

Critical judgements in applying the Group’s accounting policies

 

There are no critical judgements, apart from those involving estimation (see below) that the management has made in the process of applying the Group’s accounting policy and that has the most significant effect on the amounts recognised in the unaudited interim condensed consolidated financial statements.

 

Key sources of estimation uncertainty

 

The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are disclosed below:

 

Fair value measurement of unquoted shares (Note 5)

 

In determining the fair value of the unquoted shares, the Group relies on the net asset values of the investee companies or independent valuation report.

 

The availability of observable inputs can vary from investment to investment. For certain investments classified under Level 3 of the fair value hierarchy, the valuation could be based on models or inputs that are less observable or unobservable in the market and the determination of the fair values require significant judgement. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to occurrence of future events which could not be reasonably determined as at the balance sheet date.

v3.23.3
Financial Assets Measured at Fair Value Through Other Comprehensive Income
6 Months Ended
Jun. 30, 2023
Financial Assets Measured at Fair Value Through Other Comprehensive Income [Abstract]  
FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
4FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

 

   December 31, 2022   June 30, 2023 
   RM   RM   USD 
Quoted shares measured at fair value through other comprehensive income (“FVTOCI”):               
At beginning of year   34,221,879    12,819,747    2,746,363 
Addition   
-
    7,002,234    1,500,082 
Fair value adjustment   (21,402,132)   
-
    
-
 
Disposal   
-
    (12,819,747)   (2,746,363)
At end of the period   12,819,747    7,002,234    1,500,082 

 

Quoted shares measured at FVTOCI

 

In prior financial year, quoted investment in shares measured at FVTOCI related to an equity interest of 14.55% in Treasure Global Inc (“TGL”), an entity that is listed on the Nasdaq Stock Market. Hoo Voon Him is also a director in TGI. In January 2023, the Company disposed all of its shareholdings in TGL shares.

 

In May 2023, the Company acquired 500 shares from Globexus Holding Corp via a share-swap arrangement (Note 16).

v3.23.3
Financial Assets Measured At Fair Value Through Profit And Loss
6 Months Ended
Jun. 30, 2023
Financial Assets Measured At Fair Value Through Profit And Loss [Abstract]  
FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT AND LOSS
5FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT AND LOSS

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Unquoted shares:            
At beginning of year   1,309,134    72,295    15,488 
Addition   10,211    
-
    
-
 
Disposal   (1,247,050)   
-
    
-
 
Adjustment – forex exchange   
-
    3,749    803 
At end of year   72,295    76,044    16,291 

 

Other unquoted shares

 

Included in the unquoted shares are investment in the following:

 

5% (December 31, 2022: 5%) equity interest in Zero Carbon Farms Ltd, an entity incorporated in United Kingdom.

 

0.1% (December 31, 2022: 0.1%) equity interest in Unique Fire Holdings Berhad, an entity incorporated in Malaysia.

 

In September 2022, the Company disposed all of its shareholdings in DFA Robotic Co. Ltd to a third party.

 

The above valuations are categorised under Level 3 of the fair value hierarchy and are generally sensitive to the unobservable inputs. Any increase or decrease in transacted price would result in an increase or decrease in the fair value of the unquoted investments. Any significant movement in inputs would result in a significant change to the fair value of the unquoted investment. There are no transfers between Levels 1 and 2 and into or out of Level 3 during the year.

v3.23.3
Property, Plant and Equipment
6 Months Ended
Jun. 30, 2023
Property, plant and equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT
6PROPERTY, PLANT AND EQUIPMENT

 

  

Office

equipment

   Fixtures and fittings   Office renovations   Computer & software   Total 
   RM   RM   RM   RM   RM 
Cost                    
As of January 1, 2022   29,869    146,711    102,550    142,198    421,328 
Additions   157,518    218,109    1,221,412    71,912    1,668,951 
Disposals   (2,302)   (104,017)   
-
    (86,460)   (192,779)
As of December 31, 2022   185,085    260,803    1,323,962    127,650    1,897,500 
Additions   33,822    20,457    419,947    171,693    645,919 
Disposals   
-
    
-
    
-
    
-
    
-
 
As of June 30, 2023   218,907    281,260    1,743,909    299,343    2,543,419 
                          
Accumulated depreciation                         
As of January 1, 2022   20,145    143,851    48,909    55,891    268,796 
Depreciation for the period   17,944    31,613    135,552    44,459    229,568 
Disposals   (2,300)   (104,006)   
-
    (46,137)   (152,443)
As of December 31, 2022   35,789    71,458    184,461    54,213    345,921 
Depreciation for the period   10,931    35,393    68,070    1,333    115,727 
As of June 30, 2023   46,720    106,851    252,531    55,546    461,648 
                          
Carrying amounts                         
As of December 31, 2022   149,296    189,345    1,139,501    73,437    1,551,579 
As of June 30, 2023   172,187    174,409    1,491,378    243,797    2,081,771 
As of June 30, 2023 (USD)   36,887    37,364    319,497    52,228    445,976 
v3.23.3
Right-of-Use Assets
6 Months Ended
Jun. 30, 2023
Right-of-Use Assets [Abstract]  
RIGHT-OF-USE ASSETS
7RIGHT-OF-USE ASSETS

 

   RM 
Cost    
At January 1, 2022   
-
 
Additions   952,191 
At December 31,2022   952,191 
Additions   
-
 
At June 30, 2023   952,191 
      
Accumulated depreciation     
At January 1, 2022   
-
 
Depreciation for the period   238,048 
At December 31, 2022   238,048 
Depreciation for the period   158,698 
At June 30, 2023   396,746 
      
Carrying amount as of December 31, 2022   714,143 
Carrying amount as of June 30, 2023   555,445 
Carrying amount as of June 30, 2023 (USD)   118,992 
v3.23.3
Deferred Initial Public Offering Expense
6 Months Ended
Jun. 30, 2023
Deferred Initial Public Offering Expense [Abstract]  
DEFERRED INITIAL PUBLIC OFFERING EXPENSE
8DEFERRED INITIAL PUBLIC OFFERING EXPENSE

 

Initial public offering expense directly attributable to offering of securities are deferred and would be charged against the gross proceeds of the offering, as a reduction in share capital. As of June 30, 2023, the Company capitalised deferred of RM 6,564,162 and such cost have been offset against the offering proceeds at the closing of the initial public offering in April 2023.

v3.23.3
Deferred Tax Assets
6 Months Ended
Jun. 30, 2023
Deferred Tax Assets [Abstract]  
DEFERRED TAX ASSETS
9DEFERRED TAX ASSETS

 

The following are the major deferred tax assets recognised by the Group and the movements thereon, during the current and prior reporting periods:

 

   December 31, 2022   June 30,
2023
 
   RM   RM   USD 
Provisions:            
At beginning/end of year   339,650    339,650    72,763 
v3.23.3
Trade and Other Receivables
6 Months Ended
Jun. 30, 2023
Trade and Other Receivables [Abstract]  
TRADE AND OTHER RECEIVABLES
10 TRADE AND OTHER RECEIVABLES

 

  

As of
June 30,
2023

  

As of
December 31,
2022

 
   RM   USD   RM 
Trade receivables            
Third parties   31,135,686    6,670,170    15,266,925 
Less: Impairment allowance on trade receivables   (1,500,526)   (321,456)   (1,757,638)
    29,635,160    6,348,714    13,509,287 
Related party   117,757    25,227    1,305,724 
Total trade receivables   29,752,917    6,373,941    14,815,011 
                
Deposits   1,253,629    268,564    195,507 
Prepayments   538,390    115,339    28,578 
Other receivables   24,438,406    5,235,417    720,437 
Total   55,983,342    11,993,261    15,759,533 
                
Movement in impairment allowance on trade receivables   (257,112)   (55,081)   342,427 
                
Beginning balance   1,757,638    376,537    1,415,211 

Exchange differences

   (257,112)   (55,081)   342,427 
Ending balance   1,500,526    321,456    1,757,638 

 

The average credit period for services rendered is 30 days. No interest is charged on the outstanding balances. 

 

Other receivables consist of disposal of financial asset through other comprehensive income (Note 4). Furthermore, there are ordinary shares obtained from our customers as part of our business consultancy professional fee which disposed to third party investors.

 

  

As of

June 30,

2023

  

As of

December 31,

2022

 
   RM   USD   RM 
Not past due   22,912,675    4,908,562    11,643,721 
Past due   8,340,768    1,786,835    4,928,928 
Less: Impairment allowance on trade receivables   (1,500,526)   (321,456)   (1,757,638)
Net trade receivables   29,752,917    6,373,941    14,815,011 

 

A majority of the Group’s trade receivables that are neither past due nor impaired are with creditworthy counterparties with good track record of credit history.

 

(i)Aging of receivables that are past due the average credit period:

 

  

As of
June 30,
2023

  

As of
December 31,
2022

 
   RM   USD   RM 
< 30 days   290,053    62,138    
-
 
31 days to 60 days   154,755    33,153    1,862,965 
61 days to 210 days   6,395,434    1,370,088    
-
 
211 days to 240 days   
-
    
-
    
-
 
241 days to < 1 year   1,500,526    321,456    3,065,963 
Total   8,340,768    1,786,835    4,928,928 

 

In determining the recoverability of trade receivables, the Group considers any changes in the credit quality of the trade receivables from the date credit was initially granted up to the reporting date. There was no significant change in credit quality for the Group’s trade receivables balances which are past due and partially impaired.

 

(ii)These amounts are stated before any deduction for impairment losses and are not secured by any collateral or credit enhancements.

 

The impairment allowance in trade receivable has been determined by taking into consideration recovery prospects and past doubtful experience.

 

As part of the Group’s credit risk management, the Group assesses the impairment for its customers based on different group of customers which share common risk characteristics that are representative of the customers’ abilities to pay all amounts due in accordance with the contractual terms.

 

Impairment allowance on trade receivables has been measured at an amount equal to lifetime expected credit losses (“ECL”). The ECL on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate. The Group has recognized a loss allowance of 100% against general receivables over 240 days past due because historical experience has indicated that these receivables are generally not recoverable. For specific and individual trade receivables, the Group has access them individually to decide whether the trade receivables have recoverable issues based on the closely contact and past experience to justify it.

 

There has been no change in the estimation techniques or significant assumptions made during the current reporting period. A trade receivable is written-off when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery.

 

The following table details the risk profile of trade receivables based on the Group’s provision matrix. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished between the Group’s different customer base:

 

   Trade receivables – days past due 
   Not past
due
   1 to 30
days
   31-60
days
   61-210
days
   211-240
days
   Over 241
days
   Total 
   RM   RM   RM   RM   RM   RM   RM 
Expected credit loss rate   
-
    
-
    
-
    
-
   
-
   100%   
-
 
Lifetime ECL – December 31, 2022   
-
    
-
    
-
    
-
    
-
    1,757,638    1,757,638 
Lifetime ECL – June 30, 2023   
-
    
-
    
-
    

-

    
-
    1,500,526    1,500,526 

 

The above balances that are not denominated in the functional currency are as follows:

 

   December 31,
2022
   June 30,
2023
 
   RM   RM 
United States dollar   3,205,795    3,625,681 
v3.23.3
Cash and Bank Balances
6 Months Ended
Jun. 30, 2023
Cash and Bank Balances [Abstract]  
CASH AND BANK BALANCES
11 CASH AND BANK BALANCES

 

  

As of
December 31,
2022

  

As of
June 30,
2023

 
   RM   RM   USD 
Cash and bank balances   3,953,991    15,287,897    3,275,112 
Cash at share trading accounts   42,004    40,964    8,776 
Total   3,995,995    15,328,861    3,283,888 

 

Cash at share trading accounts are readily convertible to a known amount of cash which are subject to an insignificant risk of changes in value. 

 

The above balances that are not denominated in the functional currency are as follows:

 

   December 31,
2022
   June 30,
2023
 
   RM   RM 
Singapore dollar   12,605    22,566 
United States dollar   20,326    588,335 
v3.23.3
Trade and Other Payables
6 Months Ended
Jun. 30, 2023
Trade and Other Payables [Abstract]  
TRADE AND OTHER PAYABLES
12 TRADE AND OTHER PAYABLES

 

   December 31,
2022
   June 30,
2023
 
   RM   RM   USD 
Trade payables   139,102    1,148,594    246,062 
Accruals   7,965,442    4,657,361    997,742 
Sundry payables   2,303,774    589,388    126,264 
Total   10,408,318    6,395,343    1,370,068 

 

Accruals consist mainly of staff salaries and sundry payables consist mainly of audit fees, secretarial fees and other professional fees. 

 

The above balances that are not denominated in the functional currency are as follows:

 

   December 31,
2022
   June 30,
2023
 
   RM   RM 
Singapore dollar   
    10,164 
United States dollar   6,008,843    467,810 
v3.23.3
Contract Liabilities
6 Months Ended
Jun. 30, 2023
Contract Liabilities [Abstract]  
CONTRACT LIABILITIES
13CONTRACT LIABILITIES

 

   December
2022
   June 30,
2023
 
   RM   RM   USD 
At beginning of year / period   500,000    
-
    
-
 
Amount recognised as revenue   (500,000)   
-
    
-
 
At of end of year / period   
-
    
-
    
-
 

 

Contract liabilities relates to advances collected from customers upon contract fee billed but services have yet rendered. These will be recognised as revenue over the terms of the contract.

v3.23.3
Lease Liabilities
6 Months Ended
Jun. 30, 2023
Lease Liabilities [Abstract]  
LEASE LIABILITIES
14LEASE LIABILITIES

 

   December 31,
2022
   June 30,
2023
 
   RM   RM   USD 
At beginning of year / period   
-
    744,959    159,592 
Additions   952,191    
-
    
-
 
Finance cost   24,768    14,629    3,134 
Payments   (232,000)   (174,000)   (37,276)
At end of year / period   744,959    585,588    125,450 
                
Future lease payment payables:               
-  Within one year   348,000    174,000    37,276 
-  Within two to five years   435,000    435,000    93,190 
Total future minimum lease payments   783,000    609,000    130,466 
Less: Future finance charges   (38,041)   (23,412)   (5,016)
    744,959    585,588    125,450 

 

These are office lease contracts for premises with a tenure of 3 years. In contrast, the Group also has certain leases with lease terms of 12 months or less. The Group applies the “short-term lease” recognition exemptions for these leases.

 

Details of the carrying amounts of right-of-use assets recognized and the movements during the year/period are disclosed in Note 7 to the unaudited interim condensed consolidated financial statements.

 

The lease liabilities at the end of the reporting period bear weighted average incremental borrowing rate of 4.31% (2022: 4.31%) per annum.

 

   December 31,
2022
   June 30,
2023
 
   RM   RM   USD 
Depreciation of right-of-use asset   238,048    158,698    33,998 
Interest expense on lease liabilities   24,768    14,629    3,134 
Lease expense not capitalised in lease liabilities:        
-
    
-
 
-expense relating to short-term lease   257,243    149,951    32,124 
Total amount recognised in profit or loss   520,059    323,278    69,256 
v3.23.3
Bank and Other Borrowings
6 Months Ended
Jun. 30, 2023
Bank and Other Borrowings [Abstract]  
BANK AND OTHER BORROWINGS
15 BANK AND OTHER BORROWINGS

 

 

   December 31,
2022
   June 30,
2023
 
   RM   RM   USD 
Bank borrowings               
-       Current   133,843    32,711    7,008 
-       Non-current   309,331    309,331    66,268 
Total bank borrowings   443,174    342,042    73,276 
                
Other borrowings – current   649,699    649,699    139,184 
                
Total borrowings   1,092,873    991,741    212,460 

 

Notes:

 

  (A) Bank borrowings:

 

This is made up of the following loans:

 

Loan 1 :A principal amount of RM 150,000 from a financial institution, which charged an interest rate at 5.00% per annum and repayable over 60 months in equal monthly instalments (principal and interest) of RM 3,318. The maturity date is June 2023. The loan has been fully settled by June 30, 2023.

 

Loan 2 :A principal amount of RM 200,000 from a financial institution, which charged an interest rate at 3.50% per annum and repayable over 60 months in equal monthly instalments (principal and interest) of RM 3,639. The maturity date is August 2026.

 

Loan 3 :A principal amount of RM 300,000 from a financial institution, which charged an interest rate at 3.50% per annum and repayable over 60 months in equal monthly instalments (principal and interest) of RM 6,136. The maturity date is August 2026.

 

The bank borrowings of the Group are secured against:

 

  a) Guarantee in favour of the lender by Credit Guarantee Corporation (CGC) under the portfolio guarantee scheme for 70% of the approved limit;

 

  b) Corporate guarantee in favour of the lender by a third party company which the Director have interests;

 

  c) Assignment of single premium reducing term plan issued by Sun Life Malaysia Assurance Berhad under Director of the Company, for the sum insured of not less than RM 150,000 to the lender; and

 

  d) Jointly and severally guaranteed in favour of the lender by a Director of the Company.

 

  (B) Other borrowings

 

This relates to redeemable preference shares issued by a subsidiary. The redeemable preference shares are liability in nature as the subsidiary has to redeem the shares at a particular date by paying agreed amount to the holder of the shares. Non-discretionary dividends paid on redeemable preference shares is recorded as expenses in income statement as any return paid towards liabilities is treated as an interest expense in the income statement.

 

The redeemable preference shares have a face value of RM 600,000 representing 600,000 shares at RM 1.00 each. It is redeemable at a fair value of RM 600,000. 

v3.23.3
Share Capital
6 Months Ended
Jun. 30, 2023
Share Capital [Abstract]  
SHARE CAPITAL
16 SHARE CAPITAL

 

   December 31,
2022
   June 30,
2023
   December 31,
2022
   June 30,
2023
 
   Number of
ordinary
shares
   Number of
ordinary
shares
   RM   RM   USD 
Paid up capital:                    
At beginning of year / period   50,000    34,412,259    220,000    13,127,427    2,812,277 
Share buyback   (50,000)   -    (220,000)   -    - 
Issuance of shares(1)   33,400,100    
-
    3,330    
-
    
-
 
Issuance of shares(2)   1,012,159    
-
    13,124,097    
-
    
-
 
Issuance of shares(3)   
-
    1,280,000    
-
    16,939,389    3,628,910 
Issuance of shares(4)   
-
    600,000    
-
    7,002,234    1,500,082 
At of end of year / period   34,412,259    36,292,259    13,127,427    37,069,050    7,941,269 

 

As of December 31, 2021, the Company has authorized 50,000 ordinary shares at USD 1.00. The paid up ordinary shares has no par value and carry one vote per share and carry a right to dividends as and when declared by the Company.

 

(1)On April 8, 2022, VCI Global Limited issued a total of 33,400,100 shares at USD 0.0001 to V Capital Kronos Berhad’s shareholders in exchange of their shares in V Capital Kronos Berhad. For the purposes of comparative value in calculating the Group’s earnings per share (“EPS”), the Group has assumed that 33,400,100 shares were outstanding from 1 January 2020 to 31 December 2021 as would be included in the denominator of the EPS calculation.

 

(2) From April 8, 2022 until November 1, 2022, a total of additional 1,012,159 ordinary shares have been issued to various investors between USD 2.50 to USD 4.00 per share.

 

(3)On April 2023, a total of 1,280,000 ordinary shares is issued in initial offering at USD4.00 per ordinary share, after deduct the IPO expenses.

 

(4)On May 31, 2023, a total of 600,000 ordinary shares is issued to Globexus Holding Corp as part of share-swap arrangement for 500 Globexus Holding Corp’s shares.
v3.23.3
Capital Reserve
6 Months Ended
Jun. 30, 2023
Capital Reserve [Abstract]  
Capital Reserve
17 CAPITAL RESERVE

 

This is in relation to merger reserves.

 

The merger reserve represents effects of changes in ownership interests in subsidiaries when there is no change in control. Under merger accounting, the assets, liabilities, revenue, expenses and cash flows of all the entities within the Group are combined after making such adjustments as are necessary to achieve consistency of accounting policies. This manner of presentation reflects the economic substance of combining companies, which were under common control throughout the relevant period, as a single economic enterprise.

v3.23.3
Currency Translation Reserve
6 Months Ended
Jun. 30, 2023
Currency Translation Reserve Abstract  
CURRENCY TRANSLATION RESERVE
18

CURRENCY TRANSLATION RESERVE

 

The translation reserve comprises all foreign exchange differences arising from the translation of the consolidated financial statements of foreign operations whose functional currency is different from that of the Group’s presentation currency and is non-distributable.

v3.23.3
Revenue
6 Months Ended
Jun. 30, 2023
Revenue [Abstract]  
Revenue
19 REVENUE

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Business strategy consultancy   11,359,388    20,789,179    4,453,647 
Technology development, solutions and consultancy   9,657,906    19,733,018    4,227,387 
Interest income   
-
    1,118,641    239,645 
Others   357,338    2,822,357    604,631 
Total   21,374,632    44,463,195    9,525,310 

 

This represents revenue arising from the Group’s contracts with customers for business strategy consultancy, technology development, solution and consultancy and investment. 

v3.23.3
Other Income
6 Months Ended
Jun. 30, 2023
Other Income [Abstract]  
OTHER INCOME
20 OTHER INCOME

        

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Interest income   22    942    202 
Wage subsidy   29,900    
-
    
-
 
Gain on disposal of financial asset, FVTOCI   
-
    780,319    167,167 
Gain on disposal of property and equipment   1,891    
-
    
-
 
Foreign exchange gain   
-
    158,801    34,020 
Reimbursement income for expenses incurred   77,989    104,839    22,460 
Others   
-
    10,005    2,143 
Total   109,802    1,054,906    225,992 

 

The Wage Subsidy Program (“WSP”) is a financial assistance introduced in Malaysia paid to employers of every enterprise, for each worker earning RM4,000 and below and for a period of six months only. The purpose of the WSP is to help employers affected economically by the COVID-19 pandemic to continue operations and avoid the loss of jobs and income streams for all enterprises.

v3.23.3
Cost of Services
6 Months Ended
Jun. 30, 2023
Cost of Services [Abstract]  
COST OF SERVICES
21 COST OF SERVICES

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Consultant fee   610,797    5,676,167    1,216,000 
IT expenses   1,495,966    180,669    38,705 
Training costs   
-
    192,398    41,217 
Others   110,166    
-
    
-
 
Total   2,216,929    6,049,234    1,295,922 

 

The “consultant fee” refers to the Group’s costs incurred from assisting its clients, in engaging all the relevant professionals required during the listing process, including but not limited to legal counsel, auditors, finance consultants, the US capital markets consultant, which such consultant fee payment shall be included and be treated as part of our consultation services for its clients during the IPO’s process.

v3.23.3
Employees Benefit Expenses
6 Months Ended
Jun. 30, 2023
Employees Benefit Expenses [Abstract]  
EMPLOYEES BENEFIT EXPENSES
22 EMPLOYEES BENEFIT EXPENSES

 

   Six months ended
June 30,
2022
  

Six months ended
June 30, 2023

 
   RM   RM   USD 
Wages and salaries   4,259,555    6,860,747    1,469,771 
Defined contribution plan   399,266    514,817    110,289 
Other short-term benefits   148,550    394,661    84,548 
Total   4,807,371    7,770,225    1,664,608 

 

Included in the employee benefit expenses is remuneration and benefits to the directors of the Company as disclosed below:

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Wages and salaries   1,178,000    1,758,118    376,640 
Defined contribution plan   141,000    118,080    25,296 
Other short-term benefits   1,660    1,159    248 
Total   1,320,660    1,877,357    402,184 
v3.23.3
Finance Cost
6 Months Ended
Jun. 30, 2023
Finance Cost [Abstract]  
FINANCE COST
23 FINANCE COST

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Interest expenses on:            
Bank borrowings   8,685    1,246    267 
Operating lease obligations   
-
    14,629    3,134 
    8,685    15,875    3,401 
v3.23.3
Other Operating Expenses
6 Months Ended
Jun. 30, 2023
Other Operating Expenses [Abstract]  
Other Operating Expenses
24 OTHER OPERATING EXPENSES

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Regulatory compliance and statutory cost   134,197    103,237    22,117 
Regulatory consultancy fee   181,409    
-
    
-
 
Cost incurred to obtain licence   
-
    12,113    2,595 
Bad debt written off   
-
    
-
    
-
 
Bank charges   15,088    24,764    5,305 
Foreign exchange loss   309,003    841,902    180,360 
Marketing expenses   231,189    990,188    212,127 
Software and website usage fee   28,847    29,628    6,347 
Office expenses   406,022    981,729    210,315 
Preliminary expenses written off   11,283    280    60 
Recruitment fees   36,392    93,101    19,945 
Travelling expenses   121,236    512,997    109,899 
Net investment loss   
-
    78,618    16,842 
Total   1,474,666    3,668,557    785,912 

 

Net investment loss is derived from the total net loss incurred from the trading of shares on recognized stock exchanges during the financial year.

v3.23.3
Profit Before Income Tax
6 Months Ended
Jun. 30, 2023
Profit Before Income Tax [Abstract]  
PROFIT BEFORE INCOME TAX
25 PROFIT BEFORE INCOME TAX

 

In addition to the expenses disclosed in the notes to the unaudited interim condensed consolidated financial statements, profit before income tax has been arrived at after charging the following material expenses:

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Legal and professional fees   117,377    1,473,823    315,736 
Director’s fees   141,000    5,435,664    1,164,477 
v3.23.3
Income Tax Expenses
6 Months Ended
Jun. 30, 2023
Income Tax Expenses [Abstract]  
INCOME TAX EXPENSE
26 INCOME TAX EXPENSE

 

   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Current income tax expense   2,818,500    800,000    171,383 
Overprovision for tax expense   (2,534,852)   (173,857)   (37,245)
Income tax expense   283,648    626,143    134,138 
v3.23.3
Operating Lease
6 Months Ended
Jun. 30, 2023
Operating Lease [Abstract]  
OPERATING LEASE
27 OPERATING LEASE

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Short-term leases   257,243    149,951    32,124 

 

The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months. Lease payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term.

v3.23.3
Significant Related Party Transactions
6 Months Ended
Jun. 30, 2023
Significant Related Party Transactions [Abstract]  
SIGNIFICANT RELATED PARTY TRANSACTIONS
28 SIGNIFICANT RELATED PARTY TRANSACTIONS

 

Related companies in these unaudited interim condensed consolidated financial statements refer to members of the ultimate holding company’s group of companies.

 

Some of the Group’s transactions and arrangements are between members of the Group and the effect of these on the basis determined between the parties is reflected in these unaudited interim condensed consolidated financial statements. The intercompany balances are unsecured, interest-free and repayable on demand, unless otherwise stated.

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Balance with related parties (common shareholders)            
             
Trade receivables            
V Invesco Sdn Bhd   1,305,724    55,500    11,890 
V Capital Sdn Bhd   
-
    62,257    13,337 
    1,305,724    117,757    25,227 
                
Non-trade receivables               
                
Elmu E Sdn Bhd   3,000    
-
    
-
 
Biosecure Integrators Sdn Bhd   4,000    
-
    
-
 
                
Total amount due from related parties   1,312,724    117,757    25,227 
                
Non-trade payables               
                
Hoo Voon Him   966,797    1,152,464    246,891 
Vincent Hong   -    466,783    99,999 
Noraini   472,000    
-
    
-
 
V Consortium Sdn Bhd   100,000    56,058    12,009 
V Invesco Sdn Bhd   202,574    10,000    2,142 
V Capital Sdn Bhd   1,845,275    327,307    70,119 
V Invesco Fund (L) Limited   
-
    5,093    1,091 
Amount due to related parties   3,586,646    2,017,705    432,251 

 

Amount due to related parties are not expected to be repaid within the next 12 months.

 

Transactions with related parties

 

The following represents the significant related party transactions for the years ended June 30, 2022 and 2023.

 

            For the period
ended
June 30,
2022
   For the period
ended
June 30,
2023
 
   Relationship  Nature  Description  RM   RM   USD 
V Capital Sdn Bhd  Common
shareholder
  Trade nature  Purchase of services   -    62,257    13,337 
V Invesco Sdn Bhd  Common
shareholder
  Trade nature  Purchase of services   -    55,500    11,890 
V Capital Sdn Bhd  Common
shareholder
  Non-trade nature  Advances paid by V Capital Sdn Bhd   (1,845,275)   (327,307)   (70,119)
V Invesco Sdn Bhd  Common
shareholder
  Non-trade nature  Advances paid by V Invesco Sdn Bhd   (202,574)   (10,000)   (2,142)
V Invesco Sdn Bhd  Common
shareholder
  Trade nature  Sale of services   1,304,478    
-
    
-
 
V Invesco Fund (L) Limited  Common
shareholder
  Non-trade nature  Advances paid by V Invesco Fund (L) Limited   
-
    (5,093)   (1,091)
V Consortium Sdn Bhd  Common
shareholder
  Non-trade nature  Advances paid by V Consortium Sdn Bhd   
-
    (56,058)   (12,009)
                         
Hoo Voon Him  Director  Non-trade nature  Advance receipt from Director   (966,797)   (1,152,464)   (246,891)
Vincent Hong  Director  Non-trade nature  Advance receipt from Director   
-
    (466,783)   (99,999)
v3.23.3
Operating Segments
6 Months Ended
Jun. 30, 2023
Operating Segments [Abstract]  
OPERATING SEGMENTS
29 OPERATING  SEGMENTS

 

Services from which reportable segments derive their revenues reported to the Group’s chief operating decision maker (CODM) for the purposes of resource allocation and assessment of segment performance focuses on the types of services provided. Management has chosen to organise the Group around differences in services. No operating segments have been aggregated in arriving at the reportable segments of the Group.

 

Segment revenues and results

 

   Revenue   Net profit 
   June 30,
2022
   June 30,
2023
   June 30,
2022
   June 30,
2023
 
   RM   RM   USD   RM   RM   USD 
                         
Business strategy consultancy   11,359,388    20,789,179    4,453,647    7,402,672    6,498,804    1,392,233 
Technology development, solutions and consultancy   9,657,906    19,733,018    4,227,387    5,225,361    11,772,361    2,521,982 
Others   357,338    3,940,998    844,276    1,720,928    2,284,160    489,334 
Total   21,374,632    44,463,195    9,525,310    14,348,961    20,555,325    4,403,549 
Other gains and losses                  
-
    125,326    26,848 
Interest income                  22    942    202 
Finance cost                  
-
    (1,246)   (267)
Transition loss                  (290,874)   
-
    
-
 
Incorporation costs                  (11,283)   
-
    
-
 
Profit before income tax                  14,046,826    20,680,347    4,430,332 
Income tax expense                  (283,648)   (626,143)   (134,138)
Profit for the year                  13,763,178    20,054,204    4,296,194 

 

The accounting policies of the reportable segments are the same as the Group’s accounting policies described in Note 2. Segment profit represents the profit earned by each segment without allocation of central administration costs, finance income, finance cost and income tax expense. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.

 

Segment assets

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Business strategy consultancy   19,043,436    34,734,543    7,441,150 
Technology development, solutions and consultancy   1,175,112    32,969,910    7,063,114 
Investments and others   12,962,743    13,662,894    2,926,989 
    33,181,291    81,367,347    17,431,253 
Unallocated assets   8,642,813    -    - 
Consolidated total assets   41,824,104    81,367,347    17,431,253 

 

No geographical segment information presented as Group’s operations are conducted predominantly in Malaysia.

v3.23.3
Financial Instruments, Financial Risks and Capital Risks Management
6 Months Ended
Jun. 30, 2023
Financial Instruments, Financial Risks and Capital Risks Management [Abstract]  
FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT
30 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT

 

  a) Categories of financial instruments

 

The following table sets out the financial instruments as at the end of the reporting period:

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Financial assets            
Loan and receivables (including cash and bank balances)   19,733,950    70,773,813    15,161,810 
Finance assets measured at fair value through other comprehensive income   12,819,747    7,002,234    1,500,082 
Finance assets measured at fair value through profit or loss   72,295    76,044    16,291 
                
Financial liabilities               
Payable at amortised cost   15,711,758    10,246,843    2,195,171 
Borrowings and lease liabilities at amortised cost   1,837,832    1,577,329    337,910 

 

  b) Financial instruments subject to offsetting, enforceable master netting arrangements and similar agreements

 

The Group does not have any financial instruments which are subject to enforceable master netting arrangements or similar netting agreements.

 

  c) Financial risk management policies and objectives

 

The management of the Group monitors and manages the financial risks relating to the operations of the Group to ensure appropriate measures are implemented in a timely and effective manner. These risks include market risk (including foreign currency risk and interest rate risk), credit risk and liquidity risk.

 

  (i) Market risk management

 

The Group activities are exposed primarily to the financial risks of changes in foreign currency exchange rates and interest rates. Management monitors risks associated with changes in foreign currency exchanges rates and interest rates and will consider appropriate measures should the need arise.

 

There has been no significant change to the Group’s exposure to market risk or the manner in which it manages and measures the risk.

 

  (ii) Foreign currency risk management

 

The Group also transacts business in foreign currencies other than its functional currencies, as further disclosed below, and is therefore exposed to foreign exchange risk. 

 

The currency exposure of financial assets and financial liabilities denominated in currencies other than the Group’s functional currency is as follows:

 

   Assets   Liabilities 
   December 31,
2022
   June 30,
2023
   December 31,
2022
   June 30,
2023
 
   RM   RM   RM   RM 
Singapore Dollar   12,605    22,566    
-
    10,164 
United States Dollar   3,226,121    4,214,016    6,008,843    467,810 

 

Foreign currency sensitivity

 

The following table details the sensitivity to a 5% increase and decrease in the related foreign currencies against the functional currency (“RM”) with all the other variables held constant. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the possible change in foreign exchange rates.  The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates.

 

   December 31,
2022
   June 30,
2023
 
   RM   RM 
Singapore Dollar   630    620 
United States Dollar   (139,136)   187,310 

 

  (iii) Interest rate risk management

 

The Group is exposed to interest rate risk as the Group has bank loans which are interest bearing. The interest rates and terms of repayment of the loans are disclosed in the notes to the unaudited interim condensed consolidated financial statements. The Group currently does not have an interest rate hedging policy.

 

Interest rate sensitivity analysis

 

The sensitivity analysis below has been determined based on the exposure to interest rate for non-derivative instruments at the end of the reporting period.  A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

 

If interest rates on loans had been 50 basis points higher/lower and all other variables were held constant, the Group’s profit for the year would decrease/increase by approximately RM 50,000 (2022: RM 55,000).

 

  (iv) Credit risk management

 

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. At the end of each reporting period, the Group’s maximum exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties arises from the carrying amount of the respective recognized financial assets as stated in the statements of financial position.

 

In order to minimise credit risk, the Group has delegated its finance team to develop and maintain the Group’s credit risk grading to categorise exposures according to their degree of risk of default. The finance team uses publicly available financial information and the Group’s own historical repayment records to rate its major customers and debtors. The Group’s exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties.

 

The Group’s current credit risk grading framework comprises the following categories:

 

Category  Description  Basis for
recognising ECL
Performing  The counterparty has a low risk of default and does not have any past-due amounts  12-month ECL
Doubtful  There has been a significant increase in credit risk since initial recognition  Lifetime ECL-
not credit-impaired
In default  There is evidence indicating the asset is credit impaired  Lifetime ECL - credit impaired
Write-off  There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery  Amount is written off

 

For trade receivables, the Group has applied the simplified approach allowed in the accounting standard to measure the loss allowance at lifetime ECL. The Group determines the ECL on these items by using a provision matrix, estimated based on historical credit loss experience based on the past default experience of the debtor, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date. To measure the expected credit losses, trade receivables has been grouped based on shared credit risk characteristics (including high risk, normal risk and low risk type).

 

As at the end of the reporting period, the impairment allowance for ECL is disclosed in Note 10 to the unaudited interim condensed consolidated financial statements. The directors of the Group considered that the ECL for non-credit impaired trade receivables is insignificant as at the end of the reporting period.

 

  (v) Liquidity risk management

 

Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds.

 

In assessing our liquidity, we monitor and analyse our cash and cash equivalents and our operating expenditure commitments. Our liquidity needs are to meet our working capital requirements and operating expenses obligations. To date, we have financed our operations primarily through cash flows from operations, equity financing, and short-term borrowing from banks and related parties.

 

Based on the above considerations, management is of the opinion that the Group has sufficient funds to meet its working capital requirements and debt obligations, for at least the next 12 months from end of the reporting period.

 

The Group maintains sufficient cash and cash equivalents, and internally generated cash flows to finance their activities.

 

Liquidity risk analyses

 

Non-derivative financial liabilities

 

The following table details the remaining contractual maturity for non-derivative financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. The adjustment column represents the possible future cash flows attributable to the instrument included in the carrying amount of the financial liabilities on the statement of financial position.

 

    Weighted     On              
    average     demand              
    effective     or within     Within        
    interest rate     1 year     2 to 5 years     Total  
    %     RM     RM     RM  
                         
As of June 30, 2023                                
Non-interest bearing    
-
      6,395,343       2,017,705       8,413,048  
Fixed interest rate     3.5-5 %     162,837       422,751       585,588  
Variable interest rate     BLR+2.6 %     32,711       309,331       342,042  
Total             6,590,891       2,749,787       9,340,678  
                                 
2022                                
Non-interest bearing    
-
      10,408,318       3,586,646       13,994,964  
Fixed interest rate     3.5-5 %     1,114,999       744,331       1,859,330  
Variable interest rate     BLR+2.6 %     16,543      
-
      16,543  
Total             11,539,860       4,330,977       15,870,837  

 

  (vi) Fair value of financial assets and financial liabilities

 

The management considers that the carrying amounts of Group’s financial assets and financial liabilities approximate their respective fair values due to the relatively short-term maturity of these financial instruments. The fair values of other classes of financial assets and liabilities are disclosed in the respective notes to unaudited interim condensed consolidated financial statements.

 

  (d) Capital risk management policies and objectives

 

The management manages its capital to ensure that the Group will be able to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce cost of capital.

 

The capital structure of the Group consists of equity attributable to owners of the Company, comprising issued capital, reserve and retained earnings as disclosed in the notes to unaudited interim condensed consolidated financial statements.

 

Management monitors capital based on debt-to-equity ratio. The debt-to-equity ratio is calculated as total debt divided by total equity. Total debt is calculated as borrowings plus trade and other payables

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Total debts   15,832,796    9,990,377    2,140,229 
Total equity   24,274,514    69,543,175    14,898,172 
                
Debt-to-equity %   65.22%   14.37%   14.37%

 

The Group is not subject to externally imposed capital requirements for the financial years ended December 31, 2022 and for the financial period ended June 30, 2023.

 

The Group’s overall strategy remains unchanged from prior year.

 

  (e) Concentrations

 

Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of accounts receivables. The Group conducts credit evaluations of their customers, and generally do not require collateral or other security from them. The Group evaluates their collection experience and long outstanding balances to determine the need for an allowance for doubtful accounts. The Group conducts periodic reviews of the financial condition and payment practices of their customers to minimize collection risk on accounts receivable.

 

The following table sets forth a summary of single customers who represent 10% or more of the Group’s total revenue:

 

   June 30,
2022
   June 30, 2023 
   RM   RM   USD 
Amount of the Group’s revenue:            
Customer A   19,134,493    19,712,300    4,222,948 
Customer B   9,462,273    
-
    
-
 
Customer C   -*   8,263,840    1,770,355 

 

The following table sets forth a summary of single customers who represent 10% or more of the Group’s total accounts receivable: 

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Amount of the Group’s revenue:               
Customer A   4,078,000    3,604,500    772,189 
Customer B   
-
    

-

    

-

 

 

*Revenue from relevant customer was less than 10% of the Group’s total revenue for the respective year.
v3.23.3
Fair Value and Fair Value Hierarchy of Financial Instruments
6 Months Ended
Jun. 30, 2023
Fair Value and Fair Value Hierarchy of Financial Instruments [abstract]  
FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS
  31 FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS

 

The carrying amounts and fair values of the Group’s financial instruments, other than those with carrying amounts that reasonably approximate to fair values, are as follows:

 

   Carrying amount   Fair value 
   December 31,
2022
   June 30,
2023
   December 31,
2022
   June 30,
2023
 
   RM   RM   USD   RM   RM   USD 
Financial assets                              
Financial assets at fair value through profit or loss   72,295    76,044    16,291    72,295    76,044    16,291 
Financial assets at fair value through other comprehensive income   12,819,747    7,002,234    1,500,082    12,819,747    7,002,234    1,500,082 

 

At each reporting date, management analyses the movements in the values of financial instruments and determines the major inputs applied in the valuation.

 

The valuation procedures applied include consideration of recent transactions in the same security or financial instrument, recent financing of the investee companies, economic and market conditions, current and projected financial performance of the investee companies, and the investee companies’ management team as well as potential future strategies to realize the investments.

 

Management believes that the estimated fair values resulting from the valuation technique, which are recorded in the consolidated statements of financial position, and the related changes in fair values, which are recorded in profit or loss, are reasonable, and that they were the most appropriate values at the end of the reporting periods.

 

Fair value hierarchy

 

The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:

 

Assets measured at fair value:

 

   Fair value measurement using 
   Quoted
prices in
active
markets
(Level 1)
   Significant
observable
inputs
(Level 2)
   Significant
unobservable
inputs
(Level 3)
   Total 
   RM   RM   RM   RM 
As at December 31, 2022                    
Financial assets at fair value through profit or loss   
-
    
          -
    72,295    72,295 
Financial assets at fair value through other comprehensive income   12,819,747    
-
    
-
    12,819,747 
As at June 30, 2023                    
Financial assets at fair value through profit or loss   
-
    
-
    76,044    76,044 
Financial assets at fair value through other comprehensive income   
-
    
-
    7,002,234    7,002,234 

 

During the year ended December 31, 2022, the financial assets at fair value through other comprehensive income has been transferred from Level 2 to Level 1 as the financial asset is quoted on Nasdaq Stock Market.

 

The movements in fair value measurements within Level 1 during the years are as follow:

 

   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
             
Quoted/Unquoted equity shares at fair value through other comprehensive income               
At beginning of year   34,221,879    12,819,747    2,746,363 
Total unrealized gain recognized in other comprehensive income/(loss)   (21,402,132)   
-
    
-
 
Disposal   
-
    (12,819,747)   (2,746,363)
At end of year   12,819,747    
-
    
-
 
v3.23.3
Reconciliations of Liabilities Arising from Financing Activities
6 Months Ended
Jun. 30, 2023
Reconciliations of Liabilities Arising from Financing Activities [Abstract]  
RECONCILIATIONS OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
32 RECONCILIATIONS OF LIABILITIES ARISING FROM FINANCING ACTIVITIES

 

   At
beginning
of year
   Principal   Interest
charges
   Interest
paid
   At end of
year
 
   RM   RM   RM   RM   RM 
As of June 30, 2023                    
Bank borrowings   443,174    (101,132)   192    (192)   342,042 
Lease liabilities   744,959    (159,371)   14,629    (14,629)   585,588 
Other borrowings   649,699    
-
    
-
    
-
    649,699 
    1,837,832    (260,503)   14,821    (14,821)   1,577,329 

 

Repayment  Within
one year
   2024   2025   2026   Total 
   RM   RM   RM   RM   RM 
As of June 30, 2023                    
Bank borrowings   32,711    117,300    117,300    74,731    342,042 
Lease liabilities   162,837    422,751    
-
    
-
    585,588 
Other borrowings   649,699    
-
    
-
    
-
    649,699 
    845,247    540,051    117,300    74,731    1,577,329 

 

   At
beginning
of year
   Proceeds
from
borrowings
   Principal   Interest
charges
   Interest
paid
   At end of
year
 
   RM   RM   RM   RM   RM   RM 
As of December 31, 2022                        
Bank borrowings   542,384    
-
    (99,210)   25,560    (25,560)   443,174 
Lease liabilities   
-
    952,191    (207,232)   24,768    (24,768)   744,959 
Other borrowings   668,608    
-
    (18,909)   
-
    
-
    649,699 
    1,210,992    952,191    (325,351)   50,328    (50,328)   1,837,832 

 

Repayment  Within
one year
   2023   2024   2025   Total 
   RM   RM   RM   RM   RM 
As of December 31, 2022                    
Bank borrowings   133,843    117,300    117,300    74,731    443,174 
Lease liabilities   322,208    336,372    86,379    
-
    744,959 
Other borrowings   649,699    
-
    
-
    
-
    649,699 
    1,105,750    453,672    203,679    74,731    1,837,832 
v3.23.3
Subsequent Events
6 Months Ended
Jun. 30, 2023
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
33 SUBSEQUENT EVENTS

 

The Company evaluated all events and transactions that occurred from June 30, 2023 up through October 4, 2023, which is the date that these unaudited interim condensed consolidated financial statements are available for distribution. Other than the events disclosed below:

 

Generative AI Sdn Bhd, a private wholly-owned subsidiary of VCI Global Limited was incorporated on July 21, 2023 in Malaysia. Its principal activities include artificial intelligence, image processing, communications, networking and process control software.

 

On August 1, 2023, the Company issued 286,533 restricted ordinary shares, at a value of USD$3.49 per share, to ZCity Sdn Bhd, as their service consideration pursuant to a software development agreement.

 

On August 7, 2023, the Company issued 14,327 restricted ordinary shares, at a value of USD$3.49 per share, to Outside The Box Capital Inc., as their consideration pursuant to a marketing agreement.
v3.23.3
Accounting Policies, by Policy (Policies)
6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
BASIS OF ACCOUNTING

BASIS OF ACCOUNTING

The unaudited interim condensed consolidated financial statements have been prepared in accordance with the historical cost basis, except as disclosed in the accounting policies below, and are drawn up in accordance with the provisions of the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability which market participants would take into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these unaudited interim condensed consolidated financial statements is determined on such a basis.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

  Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
  Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
  Level 3 inputs are unobservable inputs for the asset or liability.
ADOPTION OF NEW AND REVISED STANDARDS

ADOPTION OF NEW AND REVISED STANDARDS

At the date of authorisation of these unaudited interim condensed consolidated financial statements, management anticipates that the adoption of the new and revised IFRSs and amendments to IFRS in future periods will not have a material impact on the unaudited interim condensed consolidated financial statements of the Group in the period of their initial adoption.

NEW AND REVISED IFRS IN ISSUE BUT NOT YET EFFECTIVE

NEW AND REVISED IFRS IN ISSUE BUT NOT YET EFFECTIVE

At the date of authorisation of these unaudited interim condensed consolidated financial statements, the Group has not adopted the new and revised IFRS, IFRS INT and amendments to IFRS that have been issued but are not yet effective to them. The Group do not anticipate that the adoption of these new and revised IFRS pronouncements in future periods will have a material impact on the Group’s unaudited interim condensed consolidated financial statements in the period of their initial adoption.

The preparation of these unaudited interim condensed consolidated financial statements in conformity with IFRS requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. The areas involving a higher degree of judgement or complexity, or areas where estimates and assumptions are significant to the unaudited interim condensed consolidated financial statements are disclosed in Note 3.

 

BASIS OF CONSOLIDATION

BASIS OF CONSOLIDATION 

  (a) Consolidation

As the Group were under same control of the controlling shareholders and their entire equity interests were also ultimately held by the controlling shareholders immediately prior to the group reorganization, the unaudited interim condensed consolidated statements of profit or loss and other comprehensive income, unaudited interim condensed consolidated statements of changes in equity and unaudited interim condensed consolidated statements of cash flows statements are prepared as if the current group structure had been in existence throughout the period ended June 30, 2023 and 2022, or since the respective dates of incorporation/establishment of the relevant entity, where this is a shorter period. The consolidated statements of financial position as at June 30, 2022 and 2023 present the assets and liabilities of the aforementioned companies now comprising the Group which had been incorporated/established as at the relevant balance sheet date as if the current group structure had been in existence at those dates based on the same control aforementioned. The Group eliminates all significant intercompany balances and transactions in its consolidated unaudited interim condensed consolidated financial statements.

Subsidiary corporations are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiary corporations are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on that control ceases.

In preparing the unaudited interim condensed consolidated financial statements, transactions, balances and unrealized gains on transactions between group entities are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment indicator of the transferred asset. Accounting policies of subsidiary corporations have been changed where necessary to ensure consistency with the policies adopted by the Group.

Non-controlling interests comprise the portion of a subsidiary corporation’s net results of operations and its net assets, which is attributable to the interests that are not owned directly or indirectly by the equity holders of the Company. They are shown separately in the consolidated statements of comprehensive income, statements of changes in equity, and statements of financial position. Total comprehensive income is attributed to the non-controlling interests based on their respective interests in a subsidiary, even if this results in the non-controlling interests having a deficit balance. 

Acquisition of entities under an internal reorganization scheme does not result in any change in economic substance. Accordingly, the unaudited interim condensed consolidated financial statements of the Group are a continuation of the acquired entities and is accounted for as follows:

  (i) The results of entities are presented as if the internal reorganization occurred from the beginning of the earliest period presented in the unaudited interim condensed consolidated financial statements;
  (ii) The Group will consolidate the assets and liabilities of the acquired entities at the pre-combination carrying amounts. No adjustments are made to reflect fair values, or recognize any new assets or liabilities, at the date of the internal reorganization that would otherwise be done under the acquisition method; and
  (iii) No new goodwill is recognized as a result of the internal reorganization. The only goodwill that is recognized is the existing goodwill relating to the combining entities. Any difference between the consideration paid/transferred and the equity acquired is reflected within equity as merger reserve or deficit.

 

  (b) Acquisitions

The acquisition method of accounting is used to account for business combinations entered into by the Group.

The consideration transferred for the acquisition of a subsidiary corporation or business comprises the fair value of the assets transferred, the liabilities incurred, and the equity interests issued by the Group. The consideration transferred also includes any contingent consideration arrangement and any pre-existing equity interest in the subsidiary measured at their fair values at the acquisition date.

Acquisition-related costs are expensed as incurred.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.

On an acquisition-by-acquisition basis, the Group recognizes any non-controlling interest in the acquiree at the date of acquisition either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets.

The excess of (a) the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the (b) fair value of the identifiable net assets acquired is recorded as goodwill. 

  (c) Disposals

When a change in the Group’s ownership interest in a subsidiary corporation result in a loss of control over the subsidiary corporation, the assets and liabilities of the subsidiary corporation including any goodwill are derecognized. Amounts previously recognized in other comprehensive income in respect of that entity are also reclassified to profit or loss or transferred directly to retained earnings if required by a specific Standard.

Any retained equity interest in the entity is remeasured at fair value. The difference between the carrying amount of the retained interest at the date when control is lost, and its fair value is recognized in profit or loss.

  (d) Transactions with non-controlling interests

Changes in the Group’s ownership interest in a subsidiary corporation that do not result in a loss of control over the subsidiary corporation are accounted for as transactions with equity owners of the Company. Any difference between the change in the carrying amounts of the non-controlling interest and the fair value of the consideration paid or received is recognized within equity attributable to the equity holders of the Company.

 

CONVENIENCE TRANSLATION

CONVENIENCE TRANSLATION

Translations of amounts in the unaudited interim condensed consolidated financial statements from RM into USD as of and for the year ended June 30, 2023 are solely for the convenience of the reader and were calculated at the noon buying rate of USD1 = RM 4.6679, as published in H.10 statistical release of the United States Federal Reserve Board. No representation is made that the RM amounts could have been, or could be, converted, realized or settled into USD at such rate or at any other rate. 

FINANCIAL ASSETS

FINANCIAL ASSETS

  (a) Classification and measurement

The Group classifies its financial assets at fair value through other comprehensive income, fair value through profit and loss and amortized cost.

The classification depends on the Group’s business model for managing the financial assets as well as the contractual terms of the cash flows of the financial assets.

Financial assets at fair value through other comprehensive income (“FVTOCI”) are equity securities which are not held for trading but more for strategic investments or debt securities where contractual cash flows are solely principal and interest and the objective of the Group’s business model is achieved both by collecting contractual cash flow and selling financial assets.

On initial recognition, the Group may make an irrevocable election (on an instrument-by-instrument basis) to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognised by an acquirer in a business combination.

Investments in equity instruments as at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income (“OCI”) and accumulated in the retained earnings. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, and will be transferred to retained earnings. 

The Group reclassifies debt instruments when and only when its business model for managing those assets changes.

At subsequent measurement - Debt instrument

Debt instruments mainly comprise of cash and cash equivalents and other receivables (excluding prepayments).

Debt instruments that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. A gain or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in interest income using the effective interest rate method. 

The Group recognises a loss allowance for ECL on financial assets which are subject to impairment assessment under IFRS 9. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognises lifetime ECL for accounts receivables. The ECL on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. For all other financial instruments, the Group measures the loss allowance equal to 12-month ECL, unless when there has a significant increase in credit risk since initial recognition, the Group recognises lifetime ECL. The assessment of whether lifetime ECL should be recognised is based on significant increase in the likelihood or risk of a default occurring since initial recognition.

 

Significant increase in credit risk

In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. Forward-looking information considered includes the future prospects of the industries in which the Group’s debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the Group’s operations.

In particular, the following information is taken into account when assessing whether credit risk has increased significantly:

  an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating;
  significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, the credit default swap prices for the debtor;
  existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations;
  an actual or expected significant deterioration in the operating results of the debtor;
  significant increases in credit risk on other financial instruments of the same debtor;
  an actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations.

Irrespective of the outcome of the above assessment, the Group presumes that the credit risk has increased significantly since initial recognition when contractual payments are more than 60 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise.

  (b) Recognition and derecognition

Regular way purchases and sales of financial assets are recognized on trade date – the date on which the Group commits to purchase or sell the asset.

Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

On disposal of a debt instrument, the difference between the carrying amount and the sale proceeds is recognized in profit or loss.

 

FINANCIAL LIABILITIES AND EQUITY INSTRUMENTS

FINANCIAL LIABILITIES AND EQUITY INSTRUMENTS

Classification as debt or equity

Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue costs.

Financial liabilities

Except for derivative financial instruments which are stated at fair value through profit or loss, all other financial liabilities are subsequently measured at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

Offsetting financial instruments

Financial assets and liabilities are offset, and the net amount reported in the balance sheet when there is a legally enforceable right to offset and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

  (a) Measurement
  (i) Property and equipment

Property and equipment are initially recognized at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

  (ii) Components of costs

The cost of an item of property and equipment initially recognized includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

 

  (b) Depreciation

Depreciation on other items of property and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives as followed;

Office renovation - 10 years
Office equipment - 5 years
Furniture and fittings - 5 years
Electrical and fittings - 10 years
Right of use asset - 3 years

No depreciation is charged on construction in progress.

The residual values estimated useful lives and depreciation method of property and equipment are reviewed, and adjusted as appropriate, at each balance sheet date. The effects of any revision are recognized in profit or loss when the changes arise.

  (c) Subsequent expenditure

Subsequent expenditure relating to property and equipment that has already been recognized is added to the carrying amount of the asset only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. All other repair and maintenance expenses are recognized in profit or loss when incurred.

  (d) Disposal

On disposal of an item of property and equipment, the difference between the disposal proceeds and its carrying amount is recognized in profit or loss.

TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES

A receivable is recognised when the Group has an unconditional right to receive consideration. A right to receive consideration is unconditional if only the passage of time is required before payment of that consideration is due. If revenue has been recognised before the Group has an unconditional right to receive consideration, the amount is presented as a contract asset. Trade receivables that do not contain a significant financing component are initially measured at their transaction price. Trade receivables that contain a significant financing component and other receivables are initially measured at fair value plus transaction costs. All receivables are subsequently stated at amortised cost, using the effective interest method and including an allowance for credit losses.

IMPAIRMENT OF NON-FINANCIAL ASSETS

IMPAIRMENT OF NON-FINANCIAL ASSETS

Property and equipment are tested for impairment whenever there is any objective evidence or indication that these assets may be impaired.

For the purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the Cash Generating units (“CGU”) to which the asset belongs.

If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognized as an impairment loss in profit or loss.

An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

A reversal of impairment loss for an asset other than goodwill is recognized in profit or loss.

 

TRADE AND OTHER PAYABLES

TRADE AND OTHER PAYABLES

Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. They are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). Otherwise, they are presented as non-current liabilities.

Trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method.

CONTRACT LIABILITIES

CONTRACT LIABILITIES

A contract liability is recognised when the customer pays non-refundable consideration before the Group recognises the related revenue. A contract liability would also be recognised if the Group has an unconditional right to receive non-refundable consideration before the Group recognises the related revenue. In such cases, a corresponding receivable would also be recognised. Contract liabilities are recognized as revenue when the Group satisfied its performance obligation.

BANK AND OTHER BORROWINGS

BANK AND OTHER BORROWINGS

Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least 12 months after the balance sheet date, in which case they are presented as non-current liabilities.

  (a) Borrowings - Borrowings are initially recognized at fair value (net of transaction costs) and subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.
  (b) Borrowing costs - Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

DEFERRED REVENUE

DEFERRED REVENUE

Deferred revenue refers to advance payment from clients for services that have not yet been rendered. Under the accrual basis of accounting, the Group records this payment as a liability. Once the services have been rendered, the liability is reversed and revenue is recorded instead.

LEASES

LEASES

When the Group is the lessee

At the inception of the contract, the Group assesses if the contract contains a lease. A contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Reassessment is only required when the terms and conditions of the contract are changed.

  Right-of-use assets

 

The Group recognizes a right-of-use asset and lease liability at the date which the underlying asset is available for use. Right-of-use assets are measured at cost which comprises the initial measurement of lease liabilities adjusted for any lease payments made at or before the commencement date and lease incentive received. Any initial direct costs that would not have been incurred if the lease had not been obtained are added to the carrying amount of the right- of-use assets.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

Right-of-use assets are presented within “Property and equipment”.

  Lease liabilities

The initial measurement of a lease liability is measured at the present value of the lease payments discounted using the implicit rate in the lease, if the rate can be readily determined. If that rate cannot be readily determined, the Group shall use its incremental borrowing rate.

Lease payments include the following:

  - Fixed payment (including in-substance fixed payments), less any lease incentives receivables;
  - Variable lease payment that are based on an index or rate, initially measured using the index or rate as at the commencement date;
  - Amount expected to be payable under residual value guarantees;
  - The exercise price of a purchase option if is reasonably certain to exercise the option; and
  - Payment of penalties for terminating the lease, if the lease term reflects the Group exercising that option.

For contracts that contain both lease and non-lease components, the Group allocates the consideration to each lease component on the basis of the relative stand-alone price of the lease and non-lease component. The Group has elected to not separate lease and non-lease component for property leases and account these as one single lease component.

Lease liability is measured at amortized cost using the effective interest method. Lease liability shall be remeasured when:

  - There is a change in future lease payments arising from changes in an index or rate;
  - There is a change in the Group’s assessment of whether it will exercise an extension option; or
  - There is modification in the scope or the consideration of the lease that was not part of the original term.

Lease liability is remeasured with a corresponding adjustment to the right-of-use assets, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

  Short-term and low-value leases

The Group has elected to not recognized right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months or less and leases of low-value leases. Lease payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term.

  Variable lease payments

Variable lease payments that are not based on an index or a rate are not included as part of the measurement and initial recognition of the lease liability. The Group shall recognize those lease payments in profit or loss in the periods that triggered those lease payments.

 

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

Employee benefits are recognized as an expense, unless the cost qualifies to be capitalized as an asset.

  (a) Defined contribution plans

Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into separate entities such as the Employees Provident Fund on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid.

  (b) Employee leave entitlement

Employee entitlements to annual leave are recognized when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet date.

PROVISIONS

PROVISIONS

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.  Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

REVENUE RECOGNITION

REVENUE RECOGNITION

Revenue is recognised to depict the transfer of promised services to clients at an amount that reflects the consideration to which an entity expects to be entitled in exchange for those services. Specifically, the Group uses a five-step approach to recognise revenue:

Step 1: Identify the contract(s) with a client
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognise revenue when (or as) the Group satisfies a performance obligation

The Group recognises revenue when (or as) a performance obligation is satisfied, i.e., when “control” of the services underlying the particular performance obligations is transferred to clients.

A performance obligation represents a service (or a bundle of services) that is distinct or a series of distinct services that are substantially the same.

 

Control is transferred overtime and revenue is recognised overtime by reference to the progress towards complete satisfaction of the relevant performance obligation if one of the following criteria is met:

  the client simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs;
  the Group’s performance creates or enhances an asset that the client controls as the asset is created or enhanced; or
  the Group’s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.

Otherwise, revenue is recognised at a point in time when the customer obtains control of the distinct service. 

Advance payments received from clients are recognized as contract liabilities as the Group has not yet satisfied its performance obligation. Contract liabilities are recognized as revenue when the Group satisfied its performance obligation. The Group may receive payment for service prior to, or after it satisfies the performance obligation under a service agreement.

  a) Business Strategy Consultancy

Business strategy consultancy services primarily included listing advisory and solutions, investors relations and boardroom strategies consultancy. The revenues generated from business strategy consultancy services are generally based on the fixed fee billing arrangements that require the clients to pay a pre-established fee in exchange for a predetermined set of professional services. The clients agree to pay a fixed fee periodically over the contract terms as specified in the service agreements.

Our contracts from business strategy consultancy are typically less than a year in duration. Revenues are generally recognised over time. When contractual billings represent an amount that corresponds directly with the value provided to the client, revenues are recognised as amount become billable in accordance with the contract terms. Revenues from fixed-priced contracts are generally recognised using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the Company performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to client.

  b) Technology Development, Solutions and Consultancy

Technology development, solutions and consultancy primarily included digital development, fintech solution and software solutions.

Technology Development

The contract is typically fixed priced and does not provide any post contract client support or upgrades. The Group designs system based on clients’ specific needs which require the Group to perform services including design/redesign, development, and integration. These services also require significant customization. Upon delivery of the services, client acceptance is generally required. The Group assesses that software development services is considered as a performance obligation. The duration of the development period is usually six months to two years.

The Group’s system development service revenues are generated primarily from contracts with clients across sectors. The contracts contain negotiated billing terms which generally include multiple payment phases throughout the contract term and a portion of contract amount usually is billed upon the completion of the related projects. Pursuant to the contract terms, the Group has enforceable right on payments for the work performed.

The Group’s revenue from technology development contracts is generally recognized over time. The Group uses an input method based on cost incurred as the Group believes that this method most accurately reflects the Group’s progress toward satisfaction of the performance obligation, which usually takes six months to two years. Under this method, the Group could appropriately measure the fulfilment of a performance obligation. Assumptions, risks, and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables, and deferred revenues at each reporting period.

 

Solutions and Consultancy

Revenue from solutions and consulting services is primarily comprised of fixed-fee contracts, which require the Group to provide professional solutions and consulting services over contract terms beginning on the commencement date of each contract, which is the date its service is made available to clients. Billings to the clients are generally on a monthly or quarterly basis over the contract term, which is typically 6 to 12 months. The solutions and consulting services contracts typically include a single performance obligation. The revenue from solutions and consulting services is recognized over the contract term.

  c) Interest income received

Interest income is received from the money lending other entities and individuals. Interest income is recognised on a time-proportion basis using the effective interest method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cashflow discounted at original effective interest rate of the instrument, and thereafter amortising the discount as interest income.

GOVERNMENT GRANTS AND SUBSIDIES

GOVERNMENT GRANTS AND SUBSIDIES

Grants from the government are recognized as a receivable at their fair value when there is reasonable assurance that the grant will be received and the Group will comply with all the attached conditions.

Government grants receivable are recognized as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. Government grants relating to expenses are shown separately as other income.

Grants related to assets are presented as deferred income under trade and other payables.

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS

For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents include cash on hand, deposits with financial institutions which are subject to an insignificant risk of change in value.

SHARE CAPITAL

SHARE CAPITAL

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are deducted against the share capital account.

INCOME TAX

INCOME TAX

Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a tax authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

Deferred income tax is recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

A deferred income tax liability is recognized on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized.

 

Deferred income tax is measured:

  (i) at the tax rates that are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date; and
  (ii) based on the tax consequence that will follow from the manner in which the Group expects, at the balance sheet date, to recover or settle the carrying amounts of its assets and liabilities except for investment properties. Investment property measured at fair value is presumed to be recovered entirely through sale.

Current and deferred income taxes are recognized as income or expense in profit or loss, except to the extent that the tax arises from a business combination or a transaction which is recognized directly in equity. Deferred tax arising from a business combination is adjusted against goodwill on acquisition.

The Group accounts for investment tax credits (for example, productivity and innovation credit) similar to accounting for other tax credits where a deferred tax asset is recognized for unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax credits can be utilized.

FOREIGN CURRENCY TRANSACTIONS

FOREIGN CURRENCY TRANSACTIONS

  (a) Functional and presentation currency

Items included in the unaudited interim condensed consolidated financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The unaudited interim condensed consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is the functional currency of the Company and the presentation currency of the Group.

The value of foreign currencies including, the US Dollar (“USD”), may fluctuate against the RM. Any significant variations of the aforementioned currencies relative to the RM may materially affect the Group’s financial condition in terms of reporting in RM. The following table outlines the currency exchange rates that were used in preparing the accompanying consolidated unaudited interim condensed consolidated financial statements:

   December 31,   June 30, 
   2022   2022   2023 
RM to USD at the end of the period   4.4025    4.4075    4.6679 
RM to USD Average rate   4.3983    4.2867    4.4863 
  (b) Transactions and balances

Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates at the dates of the transactions. Currency exchange differences resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the balance sheet date are recognized in profit or loss. Monetary items include primarily financial assets (other than equity investments), contract assets and financial liabilities. However, in the unaudited interim condensed consolidated financial statements, currency translation differences arising from borrowings in foreign currencies and net investment in foreign operations, are recognized in other comprehensive income and accumulated in the currency translation reserve.

When a foreign operation is disposed of or any loan forming part of the net investment of the foreign operation is repaid, a proportionate share of the accumulated currency translation differences is reclassified to profit or loss, as part of the gain or loss on disposal.

Non-monetary items measured at fair values in foreign currencies are translated using the exchange rates at the date when the fair values are determined.

 

  (c) Translation of Group entities’ financial statements

The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  (i) assets and liabilities are translated at the closing exchange rates at the reporting date;
  (ii) income and expenses are translated at average exchange rates (unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated using the exchange rates at the dates of the transactions); and
  (iii) all resulting currency translation differences are recognized in other comprehensive income and accumulated in the currency translation reserve. These currency translation differences are reclassified to profit or loss on disposal or partial disposal with loss of control of the foreign operation.

Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets and liabilities of the foreign operations and translated at the closing rates at the reporting date.

RELATED PARTIES

RELATED PARTIES

(a)A person, or a close member of that person’s family, is related to the Group if that person:
(i)has control or joint control over the Group;
  (ii) has significant influence over the Group; or
  (iii) is a member of the key management personnel of the Group or the Group’s parent. 
  (b) An entity is related to the Group if any of the following conditions applies:
(i)The entity and the group are members of the same Group (which means that each parent, subsidiary and fellow subsidiary is related to the others).
  (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a Group of which the other entity is a member). 
  (iii) Both entities are joint ventures of the same third party.
  (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. 
  (v) The entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the group. 
  (vi) The entity is controlled or jointly controlled by a person identified in (a).
  (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). 
  (viii) The entity, or any member of a Group of which it is a part, provides key management personnel services to the Group or to the Group’s parent. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.  
EARNINGS PER SHARE

EARNINGS PER SHARE

The Group presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted-average number of ordinary shares outstanding during the year, adjusted for own shares held, if any. Diluted earnings per share is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted-average number of ordinary shares outstanding, adjusted for own shares held, if any, for the effects of all dilutive potential ordinary shares.

 

SEGMENT REPORTING

SEGMENT REPORTING

Operating segments, and the amounts of each segment item reported in the unaudited interim condensed consolidated financial statements, are identified from the financial information provided regularly to the Group’s most senior executive management for the purposes of allocating resources to, and assessing the performance of, the Group’s various lines of business and geographical locations.

Individually material operating segments are not aggregated for financial reporting purposes unless the segments have similar economic characteristics and are similar in respect of the nature of products and services, the nature of production processes, the type or class of customers, the methods used to distribute the products or provide the services, and the nature of the regulatory environment. Operating segments which are not individually material may be aggregated if they share a majority of these criteria.

v3.23.3
Organization And Principal Activities (Tables)
6 Months Ended
Jun. 30, 2023
Organization And Principal Activities [Abstract]  
Schedule of Subsidiaries The Company and its subsidiaries are in the table as follows:
      Percentage of effective ownership      
Name  Date of
incorporation
  June 30,
2023
  31 December
2022
  Place of
incorporation
  Principal activities
      %  %      
VCI Global Limited  29.04.2020  100  100  British Virgin Island  Holding company
V Capital Kronos Berhad  01.09.2020  100  100  Malaysia  Holding company
V Capital Venture Sdn Bhd  19.08.2014  100  100  Malaysia  Provision of corporate and business advisory services in corporate finance, corporate structuring and restructuring, listings on recognised stock exchanges, and fintech advisory
Accuventures Sdn Bhd  22.06.2015  100  80  Malaysia  Provision of technology development, computer software programming and holding company.
Credilab Sdn Bhd  26.10.2020  100  80  Malaysia  Carry on licensed money lending activities, consulting, information technology development, and computer software programming
V Capital Advisory Sdn Bhd  12.02.2018  100  100  Malaysia  Provision of corporate and business advisory in relation to corporate listing exercise, equity investment, corporate restructuring, merger and acquisition and corporate finance.
V Capital Quantum Sdn Bhd  18.01.2018  100  100  Malaysia  Provision of information technology development, business consultancy services and holding company.
V Capital Consulting Limited  01.03.2016  100  100  British Virgin Island  Provision of corporate and business advisory services in corporate finance, corporate structuring and restructuring, listings on recognised stock exchanges, and fintech advisory
Generative AI Sdn Bhd  21.07.2023  100  -  Malaysia  Provision of Artificial Intelligence, image processing, communication, networking, & process control software services.
Imej Jiwa Communications Sdn Bhd  29.10.2012  100  100  Malaysia  Provision of investor relation consultation services.
AB Management and Consultancy Services Sdn Bhd  05.04.2020  80  80  Malaysia  Holding company
Elmu Education Group Sdn Bhd  03.12.2020  56  56  Malaysia  Education and training services
Elmu V Sdn Bhd  18.05.2021  69.2  69.2  Malaysia  Education and training services
Elmu Higher Education Sdn Bhd  24.05.2021  56  56  Malaysia  Education and training services
V Capital Real Estate Sdn Bhd  05.07.2021  100  100  Malaysia  Provision of consultancy services in relation to real estate
V Capital Robotics Sdn Bhd  12.10.2021  100  100  Malaysia  Dormant
VCI Energy Sdn Bhd (F.K.A TGI V Sdn Bhd)  12.11.2021  100  100  Malaysia  Dormant
VCIG Limited  29.04.2020  100  100  British Virgin Island  Dormant
V Galactech Sdn Bhd  12.01.2022  100  100  Malaysia  Provision of information technology development
VC Acquisition Ltd  04.01.2022  100  100  Malaysia  Dormant
VC Acquisition II Ltd  04.01.2022  100  100  British Virgin Island  Dormant

 

v3.23.3
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2023
Summary of Significant Accounting Policies [Abstract]  
Schedule of Depreciation on Property and Equipment Depreciation on other items of property and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives as followed;
Office renovation - 10 years
Office equipment - 5 years
Furniture and fittings - 5 years
Electrical and fittings - 10 years
Right of use asset - 3 years
Schedule of Currency Exchange Rate Used in Consolidated Financial Statements The value of foreign currencies including, the US Dollar (“USD”), may fluctuate against the RM. Any significant variations of the aforementioned currencies relative to the RM may materially affect the Group’s financial condition in terms of reporting in RM. The following table outlines the currency exchange rates that were used in preparing the accompanying consolidated unaudited interim condensed consolidated financial statements:
   December 31,   June 30, 
   2022   2022   2023 
RM to USD at the end of the period   4.4025    4.4075    4.6679 
RM to USD Average rate   4.3983    4.2867    4.4863 
v3.23.3
Financial Assets Measured at Fair Value Through Other Comprehensive Income (Tables)
6 Months Ended
Jun. 30, 2023
Financial Assets Measured at Fair Value Through Other Comprehensive Income [Abstract]  
Schedule of Financial Assets Measured at Fair Value Through Other Comprehensive Income
   December 31, 2022   June 30, 2023 
   RM   RM   USD 
Quoted shares measured at fair value through other comprehensive income (“FVTOCI”):               
At beginning of year   34,221,879    12,819,747    2,746,363 
Addition   
-
    7,002,234    1,500,082 
Fair value adjustment   (21,402,132)   
-
    
-
 
Disposal   
-
    (12,819,747)   (2,746,363)
At end of the period   12,819,747    7,002,234    1,500,082 
v3.23.3
Financial Assets Measured At Fair Value Through Profit And Loss (Tables)
6 Months Ended
Jun. 30, 2023
Financial Assets Measured At Fair Value Through Profit And Loss [Abstract]  
Summary of Financial Assets Measured At Fair Value Through Profit And Loss
   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Unquoted shares:            
At beginning of year   1,309,134    72,295    15,488 
Addition   10,211    
-
    
-
 
Disposal   (1,247,050)   
-
    
-
 
Adjustment – forex exchange   
-
    3,749    803 
At end of year   72,295    76,044    16,291 
v3.23.3
Property, Plant and Equipment (Tables)
6 Months Ended
Jun. 30, 2023
Property, plant and equipment [Abstract]  
Schedule of Property, Plant and Equipment
  

Office

equipment

   Fixtures and fittings   Office renovations   Computer & software   Total 
   RM   RM   RM   RM   RM 
Cost                    
As of January 1, 2022   29,869    146,711    102,550    142,198    421,328 
Additions   157,518    218,109    1,221,412    71,912    1,668,951 
Disposals   (2,302)   (104,017)   
-
    (86,460)   (192,779)
As of December 31, 2022   185,085    260,803    1,323,962    127,650    1,897,500 
Additions   33,822    20,457    419,947    171,693    645,919 
Disposals   
-
    
-
    
-
    
-
    
-
 
As of June 30, 2023   218,907    281,260    1,743,909    299,343    2,543,419 
                          
Accumulated depreciation                         
As of January 1, 2022   20,145    143,851    48,909    55,891    268,796 
Depreciation for the period   17,944    31,613    135,552    44,459    229,568 
Disposals   (2,300)   (104,006)   
-
    (46,137)   (152,443)
As of December 31, 2022   35,789    71,458    184,461    54,213    345,921 
Depreciation for the period   10,931    35,393    68,070    1,333    115,727 
As of June 30, 2023   46,720    106,851    252,531    55,546    461,648 
                          
Carrying amounts                         
As of December 31, 2022   149,296    189,345    1,139,501    73,437    1,551,579 
As of June 30, 2023   172,187    174,409    1,491,378    243,797    2,081,771 
As of June 30, 2023 (USD)   36,887    37,364    319,497    52,228    445,976 
v3.23.3
Right-of-Use Assets (Tables)
6 Months Ended
Jun. 30, 2023
Right-of-Use Assets [Abstract]  
Summary of Right of Use Assets
   RM 
Cost    
At January 1, 2022   
-
 
Additions   952,191 
At December 31,2022   952,191 
Additions   
-
 
At June 30, 2023   952,191 
      
Accumulated depreciation     
At January 1, 2022   
-
 
Depreciation for the period   238,048 
At December 31, 2022   238,048 
Depreciation for the period   158,698 
At June 30, 2023   396,746 
      
Carrying amount as of December 31, 2022   714,143 
Carrying amount as of June 30, 2023   555,445 
Carrying amount as of June 30, 2023 (USD)   118,992 
v3.23.3
Deferred Tax Assets (Tables)
6 Months Ended
Jun. 30, 2023
Deferred Tax Assets [Abstract]  
Schedule of Major Deferred Tax Assets The following are the major deferred tax assets recognised by the Group and the movements thereon, during the current and prior reporting periods:
   December 31, 2022   June 30,
2023
 
   RM   RM   USD 
Provisions:            
At beginning/end of year   339,650    339,650    72,763 
v3.23.3
Trade and Other Receivables (Tables)
6 Months Ended
Jun. 30, 2023
Trade and Other Receivables [Abstract]  
Schedule of Trade and Other Current Receivables
  

As of
June 30,
2023

  

As of
December 31,
2022

 
   RM   USD   RM 
Trade receivables            
Third parties   31,135,686    6,670,170    15,266,925 
Less: Impairment allowance on trade receivables   (1,500,526)   (321,456)   (1,757,638)
    29,635,160    6,348,714    13,509,287 
Related party   117,757    25,227    1,305,724 
Total trade receivables   29,752,917    6,373,941    14,815,011 
                
Deposits   1,253,629    268,564    195,507 
Prepayments   538,390    115,339    28,578 
Other receivables   24,438,406    5,235,417    720,437 
Total   55,983,342    11,993,261    15,759,533 
                
Movement in impairment allowance on trade receivables   (257,112)   (55,081)   342,427 
                
Beginning balance   1,757,638    376,537    1,415,211 

Exchange differences

   (257,112)   (55,081)   342,427 
Ending balance   1,500,526    321,456    1,757,638 
Furthermore, there are ordinary shares obtained from our customers as part of our business consultancy professional fee which disposed to third party investors.
  

As of

June 30,

2023

  

As of

December 31,

2022

 
   RM   USD   RM 
Not past due   22,912,675    4,908,562    11,643,721 
Past due   8,340,768    1,786,835    4,928,928 
Less: Impairment allowance on trade receivables   (1,500,526)   (321,456)   (1,757,638)
Net trade receivables   29,752,917    6,373,941    14,815,011 
Schedule of Aging of Receivables that are Past Due the Average Credit Period Aging of receivables that are past due the average credit period:
  

As of
June 30,
2023

  

As of
December 31,
2022

 
   RM   USD   RM 
< 30 days   290,053    62,138    
-
 
31 days to 60 days   154,755    33,153    1,862,965 
61 days to 210 days   6,395,434    1,370,088    
-
 
211 days to 240 days   
-
    
-
    
-
 
241 days to < 1 year   1,500,526    321,456    3,065,963 
Total   8,340,768    1,786,835    4,928,928 
Schedule of Provision Matrix Trade Receivables the provision for loss allowance based on past due status is not further distinguished between the Group’s different customer base:
   Trade receivables – days past due 
   Not past
due
   1 to 30
days
   31-60
days
   61-210
days
   211-240
days
   Over 241
days
   Total 
   RM   RM   RM   RM   RM   RM   RM 
Expected credit loss rate   
-
    
-
    
-
    
-
   
-
   100%   
-
 
Lifetime ECL – December 31, 2022   
-
    
-
    
-
    
-
    
-
    1,757,638    1,757,638 
Lifetime ECL – June 30, 2023   
-
    
-
    
-
    

-

    
-
    1,500,526    1,500,526 
Schedule of Current Trade Receivables Not Denominated in the Functional Currency The above balances that are not denominated in the functional currency are as follows:
   December 31,
2022
   June 30,
2023
 
   RM   RM 
United States dollar   3,205,795    3,625,681 
v3.23.3
Cash and Bank Balances (Tables)
6 Months Ended
Jun. 30, 2023
Cash and Bank Balances [Abstract]  
Schedule of Cash and Cash Equivalents
  

As of
December 31,
2022

  

As of
June 30,
2023

 
   RM   RM   USD 
Cash and bank balances   3,953,991    15,287,897    3,275,112 
Cash at share trading accounts   42,004    40,964    8,776 
Total   3,995,995    15,328,861    3,283,888 
Schedule of Functional Currency The above balances that are not denominated in the functional currency are as follows:
   December 31,
2022
   June 30,
2023
 
   RM   RM 
Singapore dollar   12,605    22,566 
United States dollar   20,326    588,335 
v3.23.3
Trade and Other Payables (Tables)
6 Months Ended
Jun. 30, 2023
Trade and Other Payables [Abstract]  
Schedule of Trade and Other Payables
   December 31,
2022
   June 30,
2023
 
   RM   RM   USD 
Trade payables   139,102    1,148,594    246,062 
Accruals   7,965,442    4,657,361    997,742 
Sundry payables   2,303,774    589,388    126,264 
Total   10,408,318    6,395,343    1,370,068 
Schedule of Trade and Other Payables Not Denominated in Functional Currency The above balances that are not denominated in the functional currency are as follows:
   December 31,
2022
   June 30,
2023
 
   RM   RM 
Singapore dollar   
    10,164 
United States dollar   6,008,843    467,810 
v3.23.3
Contract Liabilities (Tables)
6 Months Ended
Jun. 30, 2023
Contract Liabilities [Abstract]  
Schedule of Contract Liabilities
   December
2022
   June 30,
2023
 
   RM   RM   USD 
At beginning of year / period   500,000    
-
    
-
 
Amount recognised as revenue   (500,000)   
-
    
-
 
At of end of year / period   
-
    
-
    
-
 
v3.23.3
Lease Liabilities (Tables)
6 Months Ended
Jun. 30, 2023
Lease Liabilities [Abstract]  
Schedule of Lease Liabilities
   December 31,
2022
   June 30,
2023
 
   RM   RM   USD 
At beginning of year / period   
-
    744,959    159,592 
Additions   952,191    
-
    
-
 
Finance cost   24,768    14,629    3,134 
Payments   (232,000)   (174,000)   (37,276)
At end of year / period   744,959    585,588    125,450 
                
Future lease payment payables:               
-  Within one year   348,000    174,000    37,276 
-  Within two to five years   435,000    435,000    93,190 
Total future minimum lease payments   783,000    609,000    130,466 
Less: Future finance charges   (38,041)   (23,412)   (5,016)
    744,959    585,588    125,450 
Schedule of Lease Liabilities at the End of the Reporting Period The lease liabilities at the end of the reporting period bear weighted average incremental borrowing rate of 4.31% (2022: 4.31%) per annum.
   December 31,
2022
   June 30,
2023
 
   RM   RM   USD 
Depreciation of right-of-use asset   238,048    158,698    33,998 
Interest expense on lease liabilities   24,768    14,629    3,134 
Lease expense not capitalised in lease liabilities:        
-
    
-
 
-expense relating to short-term lease   257,243    149,951    32,124 
Total amount recognised in profit or loss   520,059    323,278    69,256 
v3.23.3
Bank and Other Borrowings (Tables)
6 Months Ended
Jun. 30, 2023
Bank and Other Borrowings [Abstract]  
Schedule of Bank and Other Borrowings
   December 31,
2022
   June 30,
2023
 
   RM   RM   USD 
Bank borrowings               
-       Current   133,843    32,711    7,008 
-       Non-current   309,331    309,331    66,268 
Total bank borrowings   443,174    342,042    73,276 
                
Other borrowings – current   649,699    649,699    139,184 
                
Total borrowings   1,092,873    991,741    212,460 
v3.23.3
Share Capital (Tables)
6 Months Ended
Jun. 30, 2023
Share Capital [Abstract]  
Schedule of Share Capital
   December 31,
2022
   June 30,
2023
   December 31,
2022
   June 30,
2023
 
   Number of
ordinary
shares
   Number of
ordinary
shares
   RM   RM   USD 
Paid up capital:                    
At beginning of year / period   50,000    34,412,259    220,000    13,127,427    2,812,277 
Share buyback   (50,000)   -    (220,000)   -    - 
Issuance of shares(1)   33,400,100    
-
    3,330    
-
    
-
 
Issuance of shares(2)   1,012,159    
-
    13,124,097    
-
    
-
 
Issuance of shares(3)   
-
    1,280,000    
-
    16,939,389    3,628,910 
Issuance of shares(4)   
-
    600,000    
-
    7,002,234    1,500,082 
At of end of year / period   34,412,259    36,292,259    13,127,427    37,069,050    7,941,269 
(1)On April 8, 2022, VCI Global Limited issued a total of 33,400,100 shares at USD 0.0001 to V Capital Kronos Berhad’s shareholders in exchange of their shares in V Capital Kronos Berhad. For the purposes of comparative value in calculating the Group’s earnings per share (“EPS”), the Group has assumed that 33,400,100 shares were outstanding from 1 January 2020 to 31 December 2021 as would be included in the denominator of the EPS calculation.
(2) From April 8, 2022 until November 1, 2022, a total of additional 1,012,159 ordinary shares have been issued to various investors between USD 2.50 to USD 4.00 per share.
(3)On April 2023, a total of 1,280,000 ordinary shares is issued in initial offering at USD4.00 per ordinary share, after deduct the IPO expenses.
(4)On May 31, 2023, a total of 600,000 ordinary shares is issued to Globexus Holding Corp as part of share-swap arrangement for 500 Globexus Holding Corp’s shares.
v3.23.3
Revenue (Tables)
6 Months Ended
Jun. 30, 2023
Revenue [Abstract]  
Schedule of Revenue
   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Business strategy consultancy   11,359,388    20,789,179    4,453,647 
Technology development, solutions and consultancy   9,657,906    19,733,018    4,227,387 
Interest income   
-
    1,118,641    239,645 
Others   357,338    2,822,357    604,631 
Total   21,374,632    44,463,195    9,525,310 
v3.23.3
Other Income (Tables)
6 Months Ended
Jun. 30, 2023
Other Income [Abstract]  
Schedule of Other Income
   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Interest income   22    942    202 
Wage subsidy   29,900    
-
    
-
 
Gain on disposal of financial asset, FVTOCI   
-
    780,319    167,167 
Gain on disposal of property and equipment   1,891    
-
    
-
 
Foreign exchange gain   
-
    158,801    34,020 
Reimbursement income for expenses incurred   77,989    104,839    22,460 
Others   
-
    10,005    2,143 
Total   109,802    1,054,906    225,992 
v3.23.3
Cost of Services (Tables)
6 Months Ended
Jun. 30, 2023
Cost of Services [Abstract]  
Schedule of Cost of Services
   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Consultant fee   610,797    5,676,167    1,216,000 
IT expenses   1,495,966    180,669    38,705 
Training costs   
-
    192,398    41,217 
Others   110,166    
-
    
-
 
Total   2,216,929    6,049,234    1,295,922 
v3.23.3
Employees Benefit Expenses (Tables)
6 Months Ended
Jun. 30, 2023
Employees Benefit Expenses [Abstract]  
Schedule of Employees Benefit Expenses
   Six months ended
June 30,
2022
  

Six months ended
June 30, 2023

 
   RM   RM   USD 
Wages and salaries   4,259,555    6,860,747    1,469,771 
Defined contribution plan   399,266    514,817    110,289 
Other short-term benefits   148,550    394,661    84,548 
Total   4,807,371    7,770,225    1,664,608 
Included in the employee benefit expenses is remuneration and benefits to the directors of the Company as disclosed below:
   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Wages and salaries   1,178,000    1,758,118    376,640 
Defined contribution plan   141,000    118,080    25,296 
Other short-term benefits   1,660    1,159    248 
Total   1,320,660    1,877,357    402,184 
v3.23.3
Finance Cost (Tables)
6 Months Ended
Jun. 30, 2023
Finance Cost [Abstract]  
Schedule of Finance Cost
   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Interest expenses on:            
Bank borrowings   8,685    1,246    267 
Operating lease obligations   
-
    14,629    3,134 
    8,685    15,875    3,401 
v3.23.3
Other Operating Expenses (Tables)
6 Months Ended
Jun. 30, 2023
Other Operating Expenses [Abstract]  
Schedule of Other Operating Expenses
   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Regulatory compliance and statutory cost   134,197    103,237    22,117 
Regulatory consultancy fee   181,409    
-
    
-
 
Cost incurred to obtain licence   
-
    12,113    2,595 
Bad debt written off   
-
    
-
    
-
 
Bank charges   15,088    24,764    5,305 
Foreign exchange loss   309,003    841,902    180,360 
Marketing expenses   231,189    990,188    212,127 
Software and website usage fee   28,847    29,628    6,347 
Office expenses   406,022    981,729    210,315 
Preliminary expenses written off   11,283    280    60 
Recruitment fees   36,392    93,101    19,945 
Travelling expenses   121,236    512,997    109,899 
Net investment loss   
-
    78,618    16,842 
Total   1,474,666    3,668,557    785,912 
v3.23.3
Profit Before Income Tax (Tables)
6 Months Ended
Jun. 30, 2023
Profit Before Income Tax [Abstract]  
Schedule of Unaudited Interim Condensed Consolidated Financial Statements In addition to the expenses disclosed in the notes to the unaudited interim condensed consolidated financial statements, profit before income tax has been arrived at after charging the following material expenses:
   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Legal and professional fees   117,377    1,473,823    315,736 
Director’s fees   141,000    5,435,664    1,164,477 
v3.23.3
Income Tax Expenses (Tables)
6 Months Ended
Jun. 30, 2023
Income Tax Expenses [Abstract]  
Schedule of Income Tax Expense
   Six months ended
June 30,
2022
   Six months ended
June 30, 2023
 
   RM   RM   USD 
Current income tax expense   2,818,500    800,000    171,383 
Overprovision for tax expense   (2,534,852)   (173,857)   (37,245)
Income tax expense   283,648    626,143    134,138 
v3.23.3
Operating Lease (Tables)
6 Months Ended
Jun. 30, 2023
Operating Lease [Abstract]  
Schedule of Operating Lease
   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Short-term leases   257,243    149,951    32,124 
v3.23.3
Significant Related Party Transactions (Tables)
6 Months Ended
Jun. 30, 2023
Significant Related Party Transactions [Abstract]  
Schedule of Transactions Between Related Parties Some of the Group’s transactions and arrangements are between members of the Group and the effect of these on the basis determined between the parties is reflected in these unaudited interim condensed consolidated financial statements. The intercompany balances are unsecured, interest-free and repayable on demand, unless otherwise stated.
   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Balance with related parties (common shareholders)            
             
Trade receivables            
V Invesco Sdn Bhd   1,305,724    55,500    11,890 
V Capital Sdn Bhd   
-
    62,257    13,337 
    1,305,724    117,757    25,227 
                
Non-trade receivables               
                
Elmu E Sdn Bhd   3,000    
-
    
-
 
Biosecure Integrators Sdn Bhd   4,000    
-
    
-
 
                
Total amount due from related parties   1,312,724    117,757    25,227 
                
Non-trade payables               
                
Hoo Voon Him   966,797    1,152,464    246,891 
Vincent Hong   -    466,783    99,999 
Noraini   472,000    
-
    
-
 
V Consortium Sdn Bhd   100,000    56,058    12,009 
V Invesco Sdn Bhd   202,574    10,000    2,142 
V Capital Sdn Bhd   1,845,275    327,307    70,119 
V Invesco Fund (L) Limited   
-
    5,093    1,091 
Amount due to related parties   3,586,646    2,017,705    432,251 
            For the period
ended
June 30,
2022
   For the period
ended
June 30,
2023
 
   Relationship  Nature  Description  RM   RM   USD 
V Capital Sdn Bhd  Common
shareholder
  Trade nature  Purchase of services   -    62,257    13,337 
V Invesco Sdn Bhd  Common
shareholder
  Trade nature  Purchase of services   -    55,500    11,890 
V Capital Sdn Bhd  Common
shareholder
  Non-trade nature  Advances paid by V Capital Sdn Bhd   (1,845,275)   (327,307)   (70,119)
V Invesco Sdn Bhd  Common
shareholder
  Non-trade nature  Advances paid by V Invesco Sdn Bhd   (202,574)   (10,000)   (2,142)
V Invesco Sdn Bhd  Common
shareholder
  Trade nature  Sale of services   1,304,478    
-
    
-
 
V Invesco Fund (L) Limited  Common
shareholder
  Non-trade nature  Advances paid by V Invesco Fund (L) Limited   
-
    (5,093)   (1,091)
V Consortium Sdn Bhd  Common
shareholder
  Non-trade nature  Advances paid by V Consortium Sdn Bhd   
-
    (56,058)   (12,009)
                         
Hoo Voon Him  Director  Non-trade nature  Advance receipt from Director   (966,797)   (1,152,464)   (246,891)
Vincent Hong  Director  Non-trade nature  Advance receipt from Director   
-
    (466,783)   (99,999)
v3.23.3
Operating Segments (Tables)
6 Months Ended
Jun. 30, 2023
Operating Segments [Abstract]  
Schedule of Segment Revenues and Results Segment revenues and results
   Revenue   Net profit 
   June 30,
2022
   June 30,
2023
   June 30,
2022
   June 30,
2023
 
   RM   RM   USD   RM   RM   USD 
                         
Business strategy consultancy   11,359,388    20,789,179    4,453,647    7,402,672    6,498,804    1,392,233 
Technology development, solutions and consultancy   9,657,906    19,733,018    4,227,387    5,225,361    11,772,361    2,521,982 
Others   357,338    3,940,998    844,276    1,720,928    2,284,160    489,334 
Total   21,374,632    44,463,195    9,525,310    14,348,961    20,555,325    4,403,549 
Other gains and losses                  
-
    125,326    26,848 
Interest income                  22    942    202 
Finance cost                  
-
    (1,246)   (267)
Transition loss                  (290,874)   
-
    
-
 
Incorporation costs                  (11,283)   
-
    
-
 
Profit before income tax                  14,046,826    20,680,347    4,430,332 
Income tax expense                  (283,648)   (626,143)   (134,138)
Profit for the year                  13,763,178    20,054,204    4,296,194 

 

Schedule of Segment Assets Segment assets
   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Business strategy consultancy   19,043,436    34,734,543    7,441,150 
Technology development, solutions and consultancy   1,175,112    32,969,910    7,063,114 
Investments and others   12,962,743    13,662,894    2,926,989 
    33,181,291    81,367,347    17,431,253 
Unallocated assets   8,642,813    -    - 
Consolidated total assets   41,824,104    81,367,347    17,431,253 
v3.23.3
Financial Instruments, Financial Risks and Capital Risks Management (Tables)
6 Months Ended
Jun. 30, 2023
Financial Instruments, Financial Risks and Capital Risks Management [Abstract]  
Schedule of Financial Instruments at the End of the Reporting Period The following table sets out the financial instruments as at the end of the reporting period:
   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Financial assets            
Loan and receivables (including cash and bank balances)   19,733,950    70,773,813    15,161,810 
Finance assets measured at fair value through other comprehensive income   12,819,747    7,002,234    1,500,082 
Finance assets measured at fair value through profit or loss   72,295    76,044    16,291 
                
Financial liabilities               
Payable at amortised cost   15,711,758    10,246,843    2,195,171 
Borrowings and lease liabilities at amortised cost   1,837,832    1,577,329    337,910 
Schedule of Currency Exposure of Financial Assets and Financial Liabilities The currency exposure of financial assets and financial liabilities denominated in currencies other than the Group’s functional currency is as follows:
   Assets   Liabilities 
   December 31,
2022
   June 30,
2023
   December 31,
2022
   June 30,
2023
 
   RM   RM   RM   RM 
Singapore Dollar   12,605    22,566    
-
    10,164 
United States Dollar   3,226,121    4,214,016    6,008,843    467,810 
The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates.
   December 31,
2022
   June 30,
2023
 
   RM   RM 
Singapore Dollar   630    620 
United States Dollar   (139,136)   187,310 
Schedule of Current Credit Risk Grading Framework The Group’s current credit risk grading framework comprises the following categories:
Category  Description  Basis for
recognising ECL
Performing  The counterparty has a low risk of default and does not have any past-due amounts  12-month ECL
Doubtful  There has been a significant increase in credit risk since initial recognition  Lifetime ECL-
not credit-impaired
In default  There is evidence indicating the asset is credit impaired  Lifetime ECL - credit impaired
Write-off  There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery  Amount is written off

 

Schedule of Non-derivative Financial Liabilities The adjustment column represents the possible future cash flows attributable to the instrument included in the carrying amount of the financial liabilities on the statement of financial position.
    Weighted     On              
    average     demand              
    effective     or within     Within        
    interest rate     1 year     2 to 5 years     Total  
    %     RM     RM     RM  
                         
As of June 30, 2023                                
Non-interest bearing    
-
      6,395,343       2,017,705       8,413,048  
Fixed interest rate     3.5-5 %     162,837       422,751       585,588  
Variable interest rate     BLR+2.6 %     32,711       309,331       342,042  
Total             6,590,891       2,749,787       9,340,678  
                                 
2022                                
Non-interest bearing    
-
      10,408,318       3,586,646       13,994,964  
Fixed interest rate     3.5-5 %     1,114,999       744,331       1,859,330  
Variable interest rate     BLR+2.6 %     16,543      
-
      16,543  
Total             11,539,860       4,330,977       15,870,837  

 

Schedule of Debt-to-Equity Ratio Total debt is calculated as borrowings plus trade and other payables
   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Total debts   15,832,796    9,990,377    2,140,229 
Total equity   24,274,514    69,543,175    14,898,172 
                
Debt-to-equity %   65.22%   14.37%   14.37%
Schedule of Total Revenue The following table sets forth a summary of single customers who represent 10% or more of the Group’s total revenue:
   June 30,
2022
   June 30, 2023 
   RM   RM   USD 
Amount of the Group’s revenue:            
Customer A   19,134,493    19,712,300    4,222,948 
Customer B   9,462,273    
-
    
-
 
Customer C   -*   8,263,840    1,770,355 
*Revenue from relevant customer was less than 10% of the Group’s total revenue for the respective year.
Schedule of Total Accounts Receivable The following table sets forth a summary of single customers who represent 10% or more of the Group’s total accounts receivable:
   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
Amount of the Group’s revenue:               
Customer A   4,078,000    3,604,500    772,189 
Customer B   
-
    

-

    

-

 
v3.23.3
Fair Value and Fair Value Hierarchy of Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2023
Fair Value and Fair Value Hierarchy of Financial Instruments [abstract]  
Schedule of Carrying Amounts that Reasonably Approximate to Fair Values The carrying amounts and fair values of the Group’s financial instruments, other than those with carrying amounts that reasonably approximate to fair values, are as follows:
   Carrying amount   Fair value 
   December 31,
2022
   June 30,
2023
   December 31,
2022
   June 30,
2023
 
   RM   RM   USD   RM   RM   USD 
Financial assets                              
Financial assets at fair value through profit or loss   72,295    76,044    16,291    72,295    76,044    16,291 
Financial assets at fair value through other comprehensive income   12,819,747    7,002,234    1,500,082    12,819,747    7,002,234    1,500,082 
Schedule of Fair Value Measurement Hierarchy The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments:
   Fair value measurement using 
   Quoted
prices in
active
markets
(Level 1)
   Significant
observable
inputs
(Level 2)
   Significant
unobservable
inputs
(Level 3)
   Total 
   RM   RM   RM   RM 
As at December 31, 2022                    
Financial assets at fair value through profit or loss   
-
    
          -
    72,295    72,295 
Financial assets at fair value through other comprehensive income   12,819,747    
-
    
-
    12,819,747 
As at June 30, 2023                    
Financial assets at fair value through profit or loss   
-
    
-
    76,044    76,044 
Financial assets at fair value through other comprehensive income   
-
    
-
    7,002,234    7,002,234 
Schedule of Movements in Fair Value Measurements The movements in fair value measurements within Level 1 during the years are as follow:
   December 31,
2022
   June 30, 2023 
   RM   RM   USD 
             
Quoted/Unquoted equity shares at fair value through other comprehensive income               
At beginning of year   34,221,879    12,819,747    2,746,363 
Total unrealized gain recognized in other comprehensive income/(loss)   (21,402,132)   
-
    
-
 
Disposal   
-
    (12,819,747)   (2,746,363)
At end of year   12,819,747    
-
    
-
 
v3.23.3
Reconciliations of Liabilities Arising from Financing Activities (Tables)
6 Months Ended
Jun. 30, 2023
Reconciliations of Liabilities Arising from Financing Activities [Abstract]  
Schedule of Reconciliation of Liabilities Arising from Financing Activities
   At
beginning
of year
   Principal   Interest
charges
   Interest
paid
   At end of
year
 
   RM   RM   RM   RM   RM 
As of June 30, 2023                    
Bank borrowings   443,174    (101,132)   192    (192)   342,042 
Lease liabilities   744,959    (159,371)   14,629    (14,629)   585,588 
Other borrowings   649,699    
-
    
-
    
-
    649,699 
    1,837,832    (260,503)   14,821    (14,821)   1,577,329 
   At
beginning
of year
   Proceeds
from
borrowings
   Principal   Interest
charges
   Interest
paid
   At end of
year
 
   RM   RM   RM   RM   RM   RM 
As of December 31, 2022                        
Bank borrowings   542,384    
-
    (99,210)   25,560    (25,560)   443,174 
Lease liabilities   
-
    952,191    (207,232)   24,768    (24,768)   744,959 
Other borrowings   668,608    
-
    (18,909)   
-
    
-
    649,699 
    1,210,992    952,191    (325,351)   50,328    (50,328)   1,837,832 
Schedule of Repayment
Repayment  Within
one year
   2024   2025   2026   Total 
   RM   RM   RM   RM   RM 
As of June 30, 2023                    
Bank borrowings   32,711    117,300    117,300    74,731    342,042 
Lease liabilities   162,837    422,751    
-
    
-
    585,588 
Other borrowings   649,699    
-
    
-
    
-
    649,699 
    845,247    540,051    117,300    74,731    1,577,329 

 

Repayment  Within
one year
   2023   2024   2025   Total 
   RM   RM   RM   RM   RM 
As of December 31, 2022                    
Bank borrowings   133,843    117,300    117,300    74,731    443,174 
Lease liabilities   322,208    336,372    86,379    
-
    744,959 
Other borrowings   649,699    
-
    
-
    
-
    649,699 
    1,105,750    453,672    203,679    74,731    1,837,832 
v3.23.3
Organization And Principal Activities (Details) - Schedule of Subsidiaries
6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 21.07.2023  
Percentage of effective ownership 100.00%  
Place of incorporation Malaysia  
Principal activities Provision of Artificial Intelligence, image processing, communication, networking, & process control software services.  
VCI Global Limited [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 29.04.2020  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation British Virgin Island  
Principal activities Holding company  
V Capital Kronos Berhad [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 01.09.2020  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation Malaysia  
Principal activities Holding company  
V Capital Venture Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 19.08.2014  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation Malaysia  
Principal activities Provision of corporate and business advisory services in corporate finance, corporate structuring and restructuring, listings on recognised stock exchanges, and fintech advisory  
Accuventures Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 22.06.2015  
Percentage of effective ownership 100.00% 80.00%
Place of incorporation Malaysia  
Principal activities Provision of technology development, computer software programming and holding company.  
Credilab Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 26.10.2020  
Percentage of effective ownership 100.00% 80.00%
Place of incorporation Malaysia  
Principal activities Carry on licensed money lending activities, consulting, information technology development, and computer software programming  
V Capital Advisory Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 12.02.2018  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation Malaysia  
Principal activities Provision of corporate and business advisory in relation to corporate listing exercise, equity investment, corporate restructuring, merger and acquisition and corporate finance.  
V Capital Quantum Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 18.01.2018  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation Malaysia  
Principal activities Provision of information technology development, business consultancy services and holding company.  
V Capital Consulting Limited [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 01.03.2016  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation British Virgin Island  
Principal activities Provision of corporate and business advisory services in corporate finance, corporate structuring and restructuring, listings on recognised stock exchanges, and fintech advisory  
Imej Jiwa Communication Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 29.10.2012  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation Malaysia  
Principal activities Provision of investor relation consultation services.  
AB Management and Consultancy Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 05.04.2020  
Percentage of effective ownership 80.00% 80.00%
Place of incorporation Malaysia  
Principal activities Holding company  
Elmu Education Group Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 03.12.2020  
Percentage of effective ownership 56.00% 56.00%
Place of incorporation Malaysia  
Principal activities Education and training services  
Elmu V Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 18.05.2021  
Percentage of effective ownership 69.20% 69.20%
Place of incorporation Malaysia  
Principal activities Education and training services  
Elmu Higher Education Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 24.05.2021  
Percentage of effective ownership 56.00% 56.00%
Place of incorporation Malaysia  
Principal activities Education and training services  
V Capital Real Estate Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 05.07.2021  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation Malaysia  
Principal activities Provision of consultancy services in relation to real estate  
V Capital Robotics Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 12.10.2021  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation Malaysia  
Principal activities Dormant  
VCI Energy Sdn Bhd (F.K.A TGI V Sdn Bhd) [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 12.11.2021  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation Malaysia  
Principal activities Dormant  
VCIG Limited [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 29.04.2020  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation British Virgin Island  
Principal activities Dormant  
V Galactech Sdn Bhd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 12.01.2022  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation Malaysia  
Principal activities Provision of information technology development  
VC Acquisition Ltd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 04.01.2022  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation Malaysia  
Principal activities Dormant  
VC Acquisition II Ltd [Member]    
Organization And Principal Activities (Details) - Schedule of Subsidiaries [Line Items]    
Date of incorporation 04.01.2022  
Percentage of effective ownership 100.00% 100.00%
Place of incorporation British Virgin Island  
Principal activities Dormant  
v3.23.3
Summary of Significant Accounting Policies (Details) - 6 months ended Jun. 30, 2023
MYR (RM)
USD ($)
Summary of Significant Accounting Policies [Abstract]    
Buying rate RM 4.6679 $ 1
v3.23.3
Summary of Significant Accounting Policies (Details) - Schedule of Depreciation on Property and Equipment
6 Months Ended
Jun. 30, 2023
Office renovation [Member]  
Summary of Significant Accounting Policies (Details) - Schedule of Depreciation on Property and Equipment [Line Items]  
Estimated useful life of property and equipment 10 years
Office equipment [Member]  
Summary of Significant Accounting Policies (Details) - Schedule of Depreciation on Property and Equipment [Line Items]  
Estimated useful life of property and equipment 5 years
Furniture and fittings [Member]  
Summary of Significant Accounting Policies (Details) - Schedule of Depreciation on Property and Equipment [Line Items]  
Estimated useful life of property and equipment 5 years
Electrical and fittings [Member]  
Summary of Significant Accounting Policies (Details) - Schedule of Depreciation on Property and Equipment [Line Items]  
Estimated useful life of property and equipment 10 years
Right of use asset [Member]  
Summary of Significant Accounting Policies (Details) - Schedule of Depreciation on Property and Equipment [Line Items]  
Estimated useful life of property and equipment 3 years
v3.23.3
Summary of Significant Accounting Policies (Details) - Schedule of Currency Exchange Rate Used in Consolidated Financial Statements
6 Months Ended 12 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Schedule of Currency Exchange Rate Used in Consolidated Financial Statements [Abstract]      
RM to USD at the end of the period 4.6679 4.4075 4.4025
RM to USD Average rate 4.4863 4.2867 4.3983
v3.23.3
Financial Assets Measured at Fair Value Through Other Comprehensive Income (Details) - shares
Jun. 30, 2023
May 31, 2023
Globexus Holding Corp [Member]    
Financial Assets Measured at Fair Value Through Other Comprehensive Income (Details) [Line Items]    
Shares acquired   500
Unquoted Investments In Shares [Member] | Treasure Global Inc one [Member]    
Financial Assets Measured at Fair Value Through Other Comprehensive Income (Details) [Line Items]    
Percentage of equity interest 14.55%  
v3.23.3
Financial Assets Measured at Fair Value Through Other Comprehensive Income (Details) - Schedule of Financial Assets Measured at Fair Value Through Other Comprehensive Income
6 Months Ended 12 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Schedule of Financial Assets Measured at Fair Value Through Other Comprehensive Income [Abstract]      
At beginning of year RM 12,819,747 $ 2,746,363 RM 34,221,879
Addition 7,002,234 1,500,082
Fair value adjustment (21,402,132)
Disposal (12,819,747) (2,746,363)
At end of the period RM 7,002,234 $ 1,500,082 RM 12,819,747
v3.23.3
Financial Assets Measured At Fair Value Through Profit And Loss (Details) - Other Unquoted Shares [Member]
Jun. 30, 2023
Dec. 31, 2022
UNITED KINGDOM | Zero Carbon Farms Ltd [Member]    
Financial Assets Measured At Fair Value Through Profit And Loss (Details) [Line Items]    
Percentage of voting equity interests acquired 5.00% 5.00%
MALAYSIA | Unique Fire Holdings Berhad [Member]    
Financial Assets Measured At Fair Value Through Profit And Loss (Details) [Line Items]    
Percentage of voting equity interests acquired 0.10% 0.10%
v3.23.3
Financial Assets Measured At Fair Value Through Profit And Loss (Details) - Summary of Financial Assets Measured at Fair Value Through Profit and Loss - Financial assets at fair value through profit or loss, category [member]
6 Months Ended 12 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Summary of Financial Assets Measured at Fair Value Through Profit and Loss [Abstract]      
At beginning of year RM 72,295 $ 15,488 RM 1,309,134
Addition 10,211
Disposal (1,247,050)
Adjustment – forex exchange 3,749 803
At end of year RM 76,044 $ 16,291 RM 72,295
v3.23.3
Property, Plant and Equipment (Details) - Schedule of Property, Plant and Equipment
6 Months Ended 12 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Cost [member]      
Cost      
Beginning balance RM 1,897,500   RM 421,328
Additions 645,919   1,668,951
Disposals   (192,779)
Ending balance 2,543,419   1,897,500
Ending balance (in Dollars) 2,543,419   1,897,500
Cost [member] | Office equipment [member]      
Cost      
Beginning balance 185,085   29,869
Additions 33,822   157,518
Disposals   (2,302)
Ending balance 218,907   185,085
Ending balance (in Dollars) 218,907   185,085
Cost [member] | Fixtures and fittings [member]      
Cost      
Beginning balance 260,803   146,711
Additions 20,457   218,109
Disposals   (104,017)
Ending balance 281,260   260,803
Ending balance (in Dollars) 281,260   260,803
Cost [member] | Office Renovation [Member]      
Cost      
Beginning balance 1,323,962   102,550
Additions 419,947   1,221,412
Disposals  
Ending balance 1,743,909   1,323,962
Ending balance (in Dollars) 1,743,909   1,323,962
Cost [member] | Computer & software [Member]      
Cost      
Beginning balance 127,650   142,198
Additions 171,693   71,912
Disposals   (86,460)
Ending balance 299,343   127,650
Ending balance (in Dollars) 299,343   127,650
Accumulated depreciation [member]      
Cost      
Beginning balance 345,921   268,796
Disposals     (152,443)
Ending balance 461,648   345,921
Ending balance (in Dollars) 461,648   345,921
Accumulated depreciation      
Depreciation for the period 115,727   229,568
Accumulated depreciation [member] | Office equipment [member]      
Cost      
Beginning balance 35,789   20,145
Disposals     (2,300)
Ending balance 46,720   35,789
Ending balance (in Dollars) 46,720   35,789
Accumulated depreciation      
Depreciation for the period 10,931   17,944
Accumulated depreciation [member] | Fixtures and fittings [member]      
Cost      
Beginning balance 71,458   143,851
Disposals     (104,006)
Ending balance 106,851   71,458
Ending balance (in Dollars) 106,851   71,458
Accumulated depreciation      
Depreciation for the period 35,393   31,613
Accumulated depreciation [member] | Office Renovation [Member]      
Cost      
Beginning balance 184,461   48,909
Disposals    
Ending balance 252,531   184,461
Ending balance (in Dollars) 252,531   184,461
Accumulated depreciation      
Depreciation for the period 68,070   135,552
Accumulated depreciation [member] | Computer & software [Member]      
Cost      
Beginning balance 54,213   55,891
Disposals     (46,137)
Ending balance 55,546   54,213
Ending balance (in Dollars) 55,546   54,213
Accumulated depreciation      
Depreciation for the period 1,333   44,459
Carrying amounts [member]      
Cost      
Beginning balance 1,551,579    
Ending balance 2,081,771 $ 445,976 1,551,579
Ending balance (in Dollars) 2,081,771   1,551,579
Carrying amounts [member] | Office equipment [member]      
Cost      
Beginning balance 149,296    
Ending balance 172,187 36,887 149,296
Ending balance (in Dollars) 172,187   149,296
Carrying amounts [member] | Fixtures and fittings [member]      
Cost      
Beginning balance 189,345    
Ending balance 174,409 37,364 189,345
Ending balance (in Dollars) 174,409   189,345
Carrying amounts [member] | Office Renovation [Member]      
Cost      
Beginning balance 1,139,501    
Ending balance 1,491,378 319,497 1,139,501
Ending balance (in Dollars) 1,491,378   1,139,501
Carrying amounts [member] | Computer & software [Member]      
Cost      
Beginning balance 73,437    
Ending balance 243,797 $ 52,228 73,437
Ending balance (in Dollars) RM 243,797   RM 73,437
v3.23.3
Right-of-Use Assets (Details) - Schedule of Right of Use Assets
6 Months Ended 12 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Cost      
Cost, ending RM 952,191    
Accumulated depreciation      
Carrying amount as of ending 555,445 $ 118,992 RM 714,143
Cost [Member]      
Cost      
Cost, beginning 952,191  
Additions   952,191
Cost, ending     952,191
Accumulated depreciation [Member]      
Accumulated depreciation      
Accumulated depreciation, beginning 238,048  
Depreciation for the period 158,698   238,048
Accumulated depreciation, ending 396,746   238,048
Carrying amount [member]      
Accumulated depreciation      
Carrying amount as of beginning 714,143    
Carrying amount as of ending 555,445   RM 714,143
Carrying amount as of ending RM 118,992    
v3.23.3
Deferred Initial Public Offering Expense (Details)
6 Months Ended
Jun. 30, 2023
MYR (RM)
Deferred Initial Public Offering Expense [Abstract]  
Capitalised deferred RM 6,564,162
v3.23.3
Deferred Tax Assets (Details) - Schedule of Major Deferred Tax Assets
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Provisions:      
At beginning/end of year RM 339,650 $ 72,763 RM 339,650
v3.23.3
Trade and Other Receivables (Details)
Jun. 30, 2023
Over Two Hundred Forty Days [Member] | Current Trade Receivables [Member]  
Trade and Other Receivables (Details) [Line Items]  
Percentage of loss allowance 100.00%
v3.23.3
Trade and Other Receivables (Details) - Schedule of Trade and Other Current Receivables
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Trade and Other Receivables (Details) - Schedule of Trade and Other Current Receivables [Line Items]      
Third parties RM 31,135,686 $ 6,670,170 RM 15,266,925
Less: Impairment allowance on trade receivables (1,500,526) (321,456) (1,757,638)
Impairment loss recognised in profit or loss, trade receivables 29,635,160 6,348,714 13,509,287
Related party 117,757 25,227 1,305,724
Total trade receivables 29,752,917 6,373,941 14,815,011
Deposits 1,253,629 268,564 195,507
Prepayments 538,390 115,339 28,578
Other receivables 24,438,406 5,235,417 720,437
Total 55,983,342 11,993,261 15,759,533
Movement in impairment allowance on trade receivables (257,112) (55,081) 342,427
Beginning balance 1,757,638 376,537 1,415,211
Exchange differences (257,112) (55,081) 342,427
Ending balance 1,500,526 321,456 1,757,638
Not Past Due [Member]      
Trade and Other Receivables (Details) - Schedule of Trade and Other Current Receivables [Line Items]      
Trade receivables 22,912,675 4,908,562 11,643,721
Past Due [Member]      
Trade and Other Receivables (Details) - Schedule of Trade and Other Current Receivables [Line Items]      
Trade receivables 8,340,768 1,786,835 4,928,928
Receivable Due [Member]      
Trade and Other Receivables (Details) - Schedule of Trade and Other Current Receivables [Line Items]      
Impairment loss recognised in profit or loss, trade receivables (1,500,526) (321,456) (1,757,638)
Total trade receivables RM 29,752,917 $ 6,373,941 RM 14,815,011
v3.23.3
Trade and Other Receivables (Details) - Schedule of Aging of Receivables that are Past Due the Average Credit Period - Current Trade Receivables [Member]
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Trade and Other Receivables (Details) - Schedule of Aging of Receivables that are Past Due the Average Credit Period [Line Items]      
Financial assets RM 8,340,768 $ 1,786,835 RM 4,928,928
Less than 30 days [Member]      
Trade and Other Receivables (Details) - Schedule of Aging of Receivables that are Past Due the Average Credit Period [Line Items]      
Financial assets 290,053 62,138
31 days to 60 days [Member]      
Trade and Other Receivables (Details) - Schedule of Aging of Receivables that are Past Due the Average Credit Period [Line Items]      
Financial assets 154,755 33,153 1,862,965
61 days to 210 days [Member]      
Trade and Other Receivables (Details) - Schedule of Aging of Receivables that are Past Due the Average Credit Period [Line Items]      
Financial assets 6,395,434 1,370,088
211 days to 240 days [Member]      
Trade and Other Receivables (Details) - Schedule of Aging of Receivables that are Past Due the Average Credit Period [Line Items]      
Financial assets
241 days to 1 year [Member]      
Trade and Other Receivables (Details) - Schedule of Aging of Receivables that are Past Due the Average Credit Period [Line Items]      
Financial assets RM 1,500,526 $ 321,456 RM 3,065,963
v3.23.3
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables - Current Trade Receivables [Member] - MYR (RM)
Jun. 30, 2023
Dec. 31, 2022
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Expected credit loss rate  
Lifetime expected credit losses [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Allowance account for credit losses of financial assets RM 1,500,526 RM 1,757,638
Not Past Due [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Expected credit loss rate  
Not Past Due [Member] | Lifetime expected credit losses [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Allowance account for credit losses of financial assets
1 to 30 days [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Expected credit loss rate  
1 to 30 days [Member] | Lifetime expected credit losses [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Allowance account for credit losses of financial assets
31-60 days [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Expected credit loss rate  
31-60 days [Member] | Lifetime expected credit losses [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Allowance account for credit losses of financial assets
61-210 days [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Expected credit loss rate  
61-210 days [Member] | Lifetime expected credit losses [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Allowance account for credit losses of financial assets
211-240 days [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Expected credit loss rate  
211-240 days [Member] | Lifetime expected credit losses [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Allowance account for credit losses of financial assets
Over 241 days [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Expected credit loss rate   100.00%
Over 241 days [Member] | Lifetime expected credit losses [Member]    
Trade and Other Receivables (Details) - Schedule of Provision Matrix Trade Receivables [Line Items]    
Allowance account for credit losses of financial assets RM 1,500,526 RM 1,757,638
v3.23.3
Trade and Other Receivables (Details) - Schedule of Current Trade Receivables Not Denominated in the Functional Currency - MYR (RM)
Jun. 30, 2023
Dec. 31, 2022
United States of America, Dollars | Current Trade Receivables [Member]    
Trade and Other Receivables (Details) - Schedule of Current Trade Receivables Not Denominated in the Functional Currency [Line Items]    
Allowance account for credit losses of financial assets RM 3,625,681 RM 3,205,795
v3.23.3
Cash and Bank Balances (Details) - Schedule of Cash and Cash Equivalents
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2021
MYR (RM)
Schedule of Cash and Cash Equivalents [Abstract]      
Cash and bank balances RM 15,287,897 $ 3,275,112 RM 3,953,991
Cash at share trading accounts 40,964 8,776 42,004
Total RM 15,328,861 $ 3,283,888 RM 3,995,995
v3.23.3
Cash and Bank Balances (Details) - Schedule of Functional Currency - MYR (RM)
Jun. 30, 2023
Dec. 31, 2022
Singapore, Dollars    
Schedule of Functional Currency [Abstract]    
Functional currency RM 22,566 RM 12,605
United States of America, Dollars    
Schedule of Functional Currency [Abstract]    
Functional currency RM 588,335 RM 20,326
v3.23.3
Trade and Other Payables (Details) - Schedule of Trade and Other Payables
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Schedule of Trade and Other Payables [Abstract]      
Trade payables RM 1,148,594 $ 246,062 RM 139,102
Accruals 4,657,361 997,742 7,965,442
Sundry payables 589,388 126,264 2,303,774
Total RM 6,395,343 $ 1,370,068 RM 10,408,318
v3.23.3
Trade and Other Payables (Details) - Schedule of Trade and Other Payables Not Denominated in Functional Currency - MYR (RM)
Jun. 30, 2023
Dec. 31, 2022
Singapore dollar [Member]    
Trade and Other Payables (Details) - Schedule of Trade and Other Payables Not Denominated in Functional Currency [Line Items]    
Trade and Other Payables RM 10,164
United States dollar [Member]    
Trade and Other Payables (Details) - Schedule of Trade and Other Payables Not Denominated in Functional Currency [Line Items]    
Trade and Other Payables RM 467,810 RM 6,008,843
v3.23.3
Contract Liabilities (Details) - Schedule of Contract Liabilities
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Contract Liabilities [Abstract]      
At beginning of year / period RM 500,000
Amount recognised as revenue (500,000)
At of end of year / period
v3.23.3
Lease Liabilities (Details)
6 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Lease Liabilities [Abstract]    
Tenure years 3 years  
Lease terms 12 months  
Weighted average incremental borrowing rate 4.31% 4.31%
v3.23.3
Lease Liabilities (Details) - Schedule of Lease Liabilities
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Lease Liabilities (Details) - Schedule of Lease Liabilities [Line Items]      
At beginning of year / period RM 744,959 $ 159,592
Additions 952,191
Finance cost 14,629 3,134 24,768
Payments (174,000) (37,276) (232,000)
At end of year / period 585,588 125,450 744,959
Future lease payment payables:      
Total future minimum lease payments 609,000 130,466 783,000
Less: Future finance charges (23,412) (5,016) (38,041)
Total 585,588   744,959
Within one year [Member]      
Future lease payment payables:      
Total future minimum lease payments 174,000 37,276 348,000
Within two to five years [Member]      
Future lease payment payables:      
Total future minimum lease payments RM 435,000 $ 93,190 RM 435,000
v3.23.3
Lease Liabilities (Details) - Schedule of Lease Liabilities at the End of the Reporting Period - Lease liabilities [Member]
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Lease [Line Items]      
Depreciation of right-of-use asset RM 158,698 $ 33,998 RM 238,048
Interest expense on lease liabilities 14,629 3,134 24,768
Lease expense not capitalised in lease liabilities:  
-expense relating to short-term lease 149,951 32,124 257,243
Total amount recognised in profit or loss RM 323,278 $ 69,256 RM 520,059
v3.23.3
Bank and Other Borrowings (Details) - MYR (RM)
6 Months Ended
Jun. 30, 2023
May 31, 2023
Bank and Other Borrowings (Details) [Line Items]    
Shares issued (in Shares)   600,000
Loan 1 [Member]    
Bank and Other Borrowings (Details) [Line Items]    
Principal amount RM 150,000  
Borrowings, interest rate 5.00%  
Borrowings, maturity 60 months  
Borrowings, periodic payment RM 3,318  
Loan 2 [Member]    
Bank and Other Borrowings (Details) [Line Items]    
Principal amount RM 200,000  
Borrowings, interest rate 3.50%  
Borrowings, maturity 60 months  
Borrowings, periodic payment RM 3,639  
Loan 3 [Member]    
Bank and Other Borrowings (Details) [Line Items]    
Principal amount RM 300,000  
Borrowings, interest rate 3.50%  
Borrowings, maturity 60 months  
Borrowings, periodic payment RM 6,136  
Sun Life Malaysia Assurance Berhad [Member]    
Bank and Other Borrowings (Details) [Line Items]    
Term insurance policy RM 150,000  
Credit Guarantee Corporation [Member]    
Bank and Other Borrowings (Details) [Line Items]    
Borrowings, threshold limit 70.00%  
Redeemable Preference Shares [Member]    
Bank and Other Borrowings (Details) [Line Items]    
Face value of preference shares issued RM 600,000  
Shares issued (in Shares) 600,000  
Price per shares (in Ringgits per share) RM 1  
Shares redeemable at fair value RM 600,000  
v3.23.3
Bank and Other Borrowings (Details) - Schedule of Bank and Other Borrowings
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Schedule of Bank and Other Borrowings [Abstract]      
- Current RM 32,711 $ 7,008 RM 133,843
- Non-current 309,331 66,268 309,331
Total bank borrowings 342,042 73,276 443,174
Other borrowings – current 649,699 139,184 649,699
Total borrowings RM 991,741 $ 212,460 RM 1,092,873
v3.23.3
Share Capital (Details) - $ / shares
7 Months Ended
Nov. 01, 2022
Jun. 30, 2023
May 31, 2023
Apr. 30, 2023
Dec. 31, 2022
Jun. 30, 2022
Apr. 08, 2022
Dec. 31, 2021
Share Capital (Details) [Line Items]                
Shares issued     600,000          
Shares outstanding   36,292,259     34,412,259 50,000    
Total of additional ordinary shares 1,012,159              
Bottom of Range [Member]                
Share Capital (Details) [Line Items]                
Par value per share (in Dollars per share) $ 2.5              
Top of Range [Member]                
Share Capital (Details) [Line Items]                
Par value per share (in Dollars per share) $ 4              
VCI Global Limited [Member]                
Share Capital (Details) [Line Items]                
Par value per share (in Dollars per share)             $ 0.0001  
Shares issued             33,400,100  
Shares outstanding               33,400,100
Globexus Holding Corp’s [Member]                
Share Capital (Details) [Line Items]                
Shares issued     500          
Ordinary Shares [Member]                
Share Capital (Details) [Line Items]                
Number of shares authorised               50,000
Par value per share (in Dollars per share)       $ 0.00       $ 1
Shares issued       1,280,000        
v3.23.3
Share Capital (Details) - Schedule of Share Capital
6 Months Ended
Jun. 30, 2023
MYR (RM)
shares
Jun. 30, 2023
USD ($)
shares
Dec. 31, 2022
MYR (RM)
shares
Dec. 31, 2022
USD ($)
shares
Paid up capital:        
At beginning of year / period 34,412,259 34,412,259 50,000 50,000
At beginning of year / period RM 13,127,427 $ 2,812,277 RM 220,000  
Share buyback     (50,000) (50,000)
Share buyback | RM     RM (220,000)  
Issuance of shares [1] 33,400,100 33,400,100
Issuance of shares [1] RM 3,330  
Issuance of shares [2] 1,012,159 1,012,159
Issuance of shares [2] RM 13,124,097  
Issuance of shares [3] 1,280,000 1,280,000
Issuance of shares [3] RM 16,939,389 $ 3,628,910  
Issuance of shares [4] 600,000 600,000
Issuance of shares [4] RM 7,002,234 $ 1,500,082  
At of end of year / period 36,292,259 36,292,259 34,412,259 34,412,259
At of end of year / period RM 37,069,050 $ 7,941,269 RM 13,127,427 $ 2,812,277
[1] On April 8, 2022, VCI Global Limited issued a total of 33,400,100 shares at USD 0.0001 to V Capital Kronos Berhad’s shareholders in exchange of their shares in V Capital Kronos Berhad. For the purposes of comparative value in calculating the Group’s earnings per share (“EPS”), the Group has assumed that 33,400,100 shares were outstanding from 1 January 2020 to 31 December 2021 as would be included in the denominator of the EPS calculation.
[2] From April 8, 2022 until November 1, 2022, a total of additional 1,012,159 ordinary shares have been issued to various investors between USD 2.50 to USD 4.00 per share.
[3] On April 2023, a total of 1,280,000 ordinary shares is issued in initial offering at USD4.00 per ordinary share, after deduct the IPO expenses.
[4] On May 31, 2023, a total of 600,000 ordinary shares is issued to Globexus Holding Corp as part of share-swap arrangement for 500 Globexus Holding Corp’s shares.
v3.23.3
Revenue (Details) - Schedule of Revenue
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
MYR (RM)
Revenue (Details) - Schedule of Revenue [Line Items]      
Total Revenue RM 44,463,195 $ 9,525,310 RM 21,374,632
Business strategy consultancy [Member]      
Revenue (Details) - Schedule of Revenue [Line Items]      
Total Revenue 20,789,179 4,453,647 11,359,388
Technology development, solutions and consultancy [Member]      
Revenue (Details) - Schedule of Revenue [Line Items]      
Total Revenue 19,733,018 4,227,387 9,657,906
Interest income [Member]      
Revenue (Details) - Schedule of Revenue [Line Items]      
Total Revenue 1,118,641 239,645
Others [Member]      
Revenue (Details) - Schedule of Revenue [Line Items]      
Total Revenue RM 2,822,357 $ 604,631 RM 357,338
v3.23.3
Other Income (Details)
6 Months Ended
Jun. 30, 2023
USD ($)
Wage Subsidy Program [Member]  
Other Income (Details) [Line Items]  
Wages and salaries $ 0
v3.23.3
Other Income (Details) - Schedule of Other Income
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
MYR (RM)
Schedule of Other Income [Abstract]      
Interest income RM 942 $ 202 RM 22
Wage subsidy 29,900
Gain on disposal of financial asset, FVTOCI 780,319 167,167
Gain on disposal of property and equipment 1,891
Foreign exchange gain 158,801 34,020
Reimbursement income for expenses incurred 104,839 22,460 77,989
Others 10,005 2,143
Total RM 1,054,906 $ 225,992 RM 109,802
v3.23.3
Cost of Services (Details) - Schedule of Cost of Services
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
MYR (RM)
Schedule of Cost of Services [Abstract]      
Consultant fee RM 5,676,167 $ 1,216,000 RM 610,797
IT expenses 180,669 38,705 1,495,966
Training costs 192,398 41,217
Others 110,166
Total RM 6,049,234 $ 1,295,922 RM 2,216,929
v3.23.3
Employees Benefit Expenses (Details) - Schedule of Employees Benefit Expenses
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
MYR (RM)
Employees Benefit Expenses (Details) - Schedule of Employees Benefit Expenses [Line Items]      
Wages and salaries RM 6,860,747 $ 1,469,771 RM 4,259,555
Defined contribution plan 514,817 110,289 399,266
Other short-term benefits 394,661 84,548 148,550
Total 7,770,225 1,664,608 4,807,371
Director [Member]      
Employees Benefit Expenses (Details) - Schedule of Employees Benefit Expenses [Line Items]      
Wages and salaries 1,758,118 376,640 1,178,000
Defined contribution plan 118,080 25,296 141,000
Other short-term benefits 1,159 248 1,660
Total RM 1,877,357 $ 402,184 RM 1,320,660
v3.23.3
Finance Cost (Details) - Schedule of Finance Cost
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
MYR (RM)
Finance Cost [Abstract]      
Bank borrowings RM 1,246 $ 267 RM 8,685
Operating lease obligations 14,629 3,134
Total finance cost RM 15,875 $ 3,401 RM 8,685
v3.23.3
Other Operating Expenses (Details) - Schedule of Other Operating Expenses
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
MYR (RM)
Schedule of Other Operating Expenses [Abstract]      
Regulatory compliance and statutory cost RM 103,237 $ 22,117 RM 134,197
Regulatory consultancy fee 181,409
Cost incurred to obtain licence 12,113 2,595
Bad debt written off
Bank charges 24,764 5,305 15,088
Foreign exchange loss 841,902 180,360 309,003
Marketing expenses 990,188 212,127 231,189
Software and website usage fee 29,628 6,347 28,847
Office expenses 981,729 210,315 406,022
Preliminary expenses written off 280 60 11,283
Recruitment fees 93,101 19,945 36,392
Travelling expenses 512,997 109,899 121,236
Net investment loss 78,618 16,842
Total RM 3,668,557 $ 785,912 RM 1,474,666
v3.23.3
Profit Before Income Tax (Details) - Schedule of Unaudited Interim Condensed Consolidated Financial Statements
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
MYR (RM)
Schedule Of Unaudited Interim Condensed Consolidated Financial Statements Abstract      
Legal and professional fees RM 1,473,823 $ 315,736 RM 117,377
Director’s fees RM 5,435,664 $ 1,164,477 RM 141,000
v3.23.3
Income Tax Expenses (Details) - Schedule of Income Tax Expense
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
MYR (RM)
Schedule Of Income Tax Expense [Abstract]      
Current income tax expense RM 800,000 $ 171,383 RM 2,818,500
Overprovision for tax expense (173,857) (37,245) (2,534,852)
Income tax expense RM 626,143 $ 134,138 RM 283,648
v3.23.3
Operating Lease (Details) - Schedule of Operating Lease
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Schedule of Operating Lease [Abstract]      
Short-term leases RM 149,951 $ 32,124 RM 257,243
v3.23.3
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Jun. 30, 2022
MYR (RM)
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Balance with related parties RM 117,757 $ 25,227 RM 1,305,724  
Amount due to related parties 2,017,705 432,251 3,586,646  
Total amount due from related parties 117,757 25,227 RM 1,312,724  
V Invesco Sdn Bhd One [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Transactions with related parties (10,000) (2,142)   RM (202,574)
Relationship     Common shareholder  
Nature     Non-trade nature  
Description     Advances paid by V Invesco Sdn Bhd  
V Invesco Sdn Bhd One [Member] | Trade receivables [member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Balance with related parties 55,500 11,890 RM 1,305,724  
V Invesco Sdn Bhd One [Member] | Non Trade Payables [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Balance with related parties 10,000 2,142 RM 202,574  
V Capital Sdn Bhd One [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Transactions with related parties 62,257 13,337    
Relationship     Common shareholder  
Nature     Trade nature  
Description     Purchase of services  
V Capital Sdn Bhd One [Member] | Trade Payables [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Balance with related parties 62,257 13,337  
V Capital Sdn Bhd One [Member] | Non Trade Payables [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Balance with related parties 327,307 70,119 1,845,275  
Elmu E Sdn Bhd [Member] | Non Trade Receivables [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Balance with related parties 3,000  
Biosecure Integrators Sdn Bhd [Member] | Non Trade Receivables [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Balance with related parties 4,000  
Hoo Voon Him One [Member] | Non Trade Payables [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Balance with related parties 1,152,464 246,891 966,797  
Vincent Hong [Member] | Non Trade Payables [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Balance with related parties 466,783 99,999    
Noraini [Member] | Non Trade Payables [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Balance with related parties RM 472,000  
V consortium Sdn Bhd [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Transactions with related parties (56,058) (12,009)  
Relationship     Common shareholder  
Nature     Non-trade nature  
Description     Advances paid by V Consortium Sdn Bhd  
V consortium Sdn Bhd [Member] | Non Trade Payables [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Balance with related parties 56,058 12,009 RM 100,000  
V Invesco Fund (L) Limited [Member] | Non Trade Receivables [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Balance with related parties 5,093 1,091  
Transactions with related parties (5,093) (1,091)  
Relationship     Common shareholder  
Nature     Non-trade nature  
Description     Advances paid by V Invesco Fund (L) Limited  
V Capital Sdn Bhd Two [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Transactions with related parties 55,500 11,890    
Relationship     Common shareholder  
Nature     Trade nature  
Description     Purchase of services  
V Capital Sdn Bhd Three [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Transactions with related parties (327,307) (70,119)   (1,845,275)
Relationship     Common shareholder  
Nature     Non-trade nature  
Description     Advances paid by V Capital Sdn Bhd  
V Invesco Sdn Bhd Two [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Transactions with related parties   1,304,478
Relationship     Common shareholder  
Nature     Trade nature  
Description     Sale of services  
Hoo Voon Him Two [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Transactions with related parties (1,152,464) (246,891)   (966,797)
Relationship     Director  
Nature     Non-trade nature  
Description     Advance receipt from Director  
Treasure Global Inc Two [Member]        
Significant Related Party Transactions (Details) - Schedule of Transactions Between Related Parties [Line Items]        
Transactions with related parties RM (466,783) $ (99,999)  
Relationship     Director  
Nature     Non-trade nature  
Description     Advance receipt from Director  
v3.23.3
Operating Segments (Details) - Schedule of Segment Revenues and Results - Operating segments [member]
6 Months Ended 12 Months Ended
Jun. 30, 2022
MYR (RM)
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
MYR (RM)
Operating Segments (Details) - Schedule of Segment Revenues and Results [Line Items]        
Revenue RM 21,374,632 RM 44,463,195 $ 9,525,310  
Net profit   20,555,325 4,403,549 RM 14,348,961
Other gains and losses   125,326 26,848
Interest income   942 202 22
Finance cost   (1,246) (267)
Transition loss   (290,874)
Incorporation costs   (11,283)
Profit before income tax   20,680,347 4,430,332 14,046,826
Income tax expense   (626,143) (134,138) (283,648)
Profit for the year   20,054,204 4,296,194 13,763,178
Business Strategy And Consultancy [Member]        
Operating Segments (Details) - Schedule of Segment Revenues and Results [Line Items]        
Revenue 11,359,388 20,789,179 4,453,647  
Net profit   6,498,804 1,392,233 7,402,672
Technology Development Solutions And Consultancy [Member]        
Operating Segments (Details) - Schedule of Segment Revenues and Results [Line Items]        
Revenue 9,657,906 19,733,018 4,227,387  
Net profit   11,772,361 2,521,982 5,225,361
Other Segments [Member]        
Operating Segments (Details) - Schedule of Segment Revenues and Results [Line Items]        
Revenue RM 357,338 3,940,998 844,276  
Net profit   RM 2,284,160 $ 489,334 RM 1,720,928
v3.23.3
Operating Segments (Details) - Schedule of Segment Assets
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Operating Segments (Details) - Schedule of Segment Assets [Line Items]      
Assets RM 81,367,347 $ 17,431,253 RM 41,824,104
Consolidated Total Assets [Member]      
Operating Segments (Details) - Schedule of Segment Assets [Line Items]      
Assets 81,367,347 17,431,253 41,824,104
Operating segments [member]      
Operating Segments (Details) - Schedule of Segment Assets [Line Items]      
Assets 81,367,347 17,431,253 33,181,291
Unallocated amounts [member]      
Operating Segments (Details) - Schedule of Segment Assets [Line Items]      
Assets     8,642,813
Business Strategy And Consultancy [Member] | Operating segments [member]      
Operating Segments (Details) - Schedule of Segment Assets [Line Items]      
Assets 34,734,543 7,441,150 19,043,436
Technology Development Solutions And Consultancy [Member] | Operating segments [member]      
Operating Segments (Details) - Schedule of Segment Assets [Line Items]      
Assets 32,969,910 7,063,114 1,175,112
Other Services [Member] | Operating segments [member]      
Operating Segments (Details) - Schedule of Segment Assets [Line Items]      
Assets RM 13,662,894 $ 2,926,989 RM 12,962,743
v3.23.3
Financial Instruments, Financial Risks and Capital Risks Management (Details) - MYR (RM)
6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2021
Financial Instruments, Financial Risks and Capital Risks Management (Details) [Line Items]    
Change in foreign currency rates 5.00%  
Sensitivity rate of foreign currency 5.00%  
Decrease increase profit for the year (in Ringgits) RM 50,000 RM 55,000
Total revenue percentage 10.00%  
Total accounts receivable percentage 10.00%  
Single Customer [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) [Line Items]    
Total revenue percentage 10.00%  
Currency Risk [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) [Line Items]    
Change in foreign currency rates 5.00%  
v3.23.3
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Financial Instruments at the End of the Reporting Period
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Financial assets      
Loan and receivables (including cash and bank balances) RM 70,773,813 $ 15,161,810 RM 19,733,950
Finance assets measured at fair value through other comprehensive income 7,002,234 1,500,082 12,819,747
Finance assets measured at fair value through profit or loss 76,044 16,291 72,295
Payable [Member]      
Financial liabilities      
Financial liabilities at amortised cost 10,246,843 2,195,171 15,711,758
Borrowings And Lease Liabilities [Member]      
Financial liabilities      
Financial liabilities at amortised cost RM 1,577,329 $ 337,910 RM 1,837,832
v3.23.3
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Currency Exposure of Financial Assets and Financial Liabilities - MYR (RM)
6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Singapore Dollar [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Currency Exposure of Financial Assets and Financial Liabilities [Line Items]    
Financial assets RM 22,566 RM 12,605
Financial liabilities 10,164
Outstanding foreign currency 620 630
United States Dollar [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Currency Exposure of Financial Assets and Financial Liabilities [Line Items]    
Financial assets 4,214,016 3,226,121
Financial liabilities 467,810 6,008,843
Outstanding foreign currency RM 187,310 RM (139,136)
v3.23.3
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Current Credit Risk Grading Framework
6 Months Ended
Jun. 30, 2023
Performing [Member]  
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Current Credit Risk Grading Framework [Line Items]  
Description of credit risk The counterparty has a low risk of default and does not have any past-due amounts
Basis for recognizing ECL 12-month ECL
Doubtful [Member]  
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Current Credit Risk Grading Framework [Line Items]  
Description of credit risk There has been a significant increase in credit risk since initial recognition
Basis for recognizing ECL Lifetime ECL- not credit-impaired
In default [Member]  
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Current Credit Risk Grading Framework [Line Items]  
Description of credit risk There is evidence indicating the asset is credit impaired
Basis for recognizing ECL Lifetime ECL - credit impaired
Write-off [Member]  
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Current Credit Risk Grading Framework [Line Items]  
Description of credit risk There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery
Basis for recognizing ECL Amount is written off
v3.23.3
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities - MYR (RM)
6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Non-derivative financial liabilities RM 9,340,678 RM 15,870,837
On demand or within 1 year [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Non-derivative financial liabilities 6,590,891 11,539,860
Within 2 to 5 Years [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Non-derivative financial liabilities 2,749,787 4,330,977
Non-interest Bearing [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Non-derivative financial liabilities RM 8,413,048 RM 13,994,964
Non-interest Bearing [Member] | Weighted Average Effective Interest Rate [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Weighted average effective interest rate
Non-interest Bearing [Member] | On demand or within 1 year [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Non-derivative financial liabilities RM 6,395,343 RM 10,408,318
Non-interest Bearing [Member] | Within 2 to 5 Years [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Non-derivative financial liabilities 2,017,705 3,586,646
Fixed Interest Rate [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Non-derivative financial liabilities RM 585,588 RM 1,859,330
Fixed Interest Rate [Member] | Weighted Average Effective Interest Rate [Member] | Bottom of Range [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Weighted average effective interest rate 3.50% 3.50%
Fixed Interest Rate [Member] | Weighted Average Effective Interest Rate [Member] | Top of Range [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Weighted average effective interest rate 5.00% 5.00%
Fixed Interest Rate [Member] | On demand or within 1 year [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Non-derivative financial liabilities RM 162,837 RM 1,114,999
Fixed Interest Rate [Member] | Within 2 to 5 Years [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Non-derivative financial liabilities 422,751 744,331
Variable Interest Rate [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Non-derivative financial liabilities RM 342,042 RM 16,543
Variable Interest Rate [Member] | Weighted Average Effective Interest Rate [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Weighted average effective interest rate, Variable interest rate
Weighted average effective interest rate 2.60% 2.60%
Variable Interest Rate [Member] | On demand or within 1 year [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Non-derivative financial liabilities RM 32,711 RM 16,543
Variable Interest Rate [Member] | Within 2 to 5 Years [Member]    
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Non-derivative Financial Liabilities [Line Items]    
Non-derivative financial liabilities RM 309,331
v3.23.3
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Debt-to-Equity Ratio
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Schedule of Debt-to-Equity Ratio [Abstract]      
Total debts RM 9,990,377 $ 2,140,229 RM 15,832,796
Total equity RM 69,543,175 $ 14,898,172 RM 24,274,514
Debt-to-equity % 14.37% 14.37% 65.22%
v3.23.3
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Total Revenue
$ in Millions
6 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Jun. 30, 2022
MYR (RM)
Customer A [Member]      
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Total Revenue [Line Items]      
Amount of the Group's revenue | $   $ 4,222,948  
Customer B [Member]      
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Total Revenue [Line Items]      
Amount of the Group's revenue | $    
Customer C [Member]      
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Total Revenue [Line Items]      
Amount of the Group's revenue | $   $ 1,770,355  
Customer Concentration [member] | Customer A [Member] | Revenue [member]      
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Total Revenue [Line Items]      
Amount of the Group's revenue | RM RM 19,712,300   RM 19,134,493
Customer Concentration [member] | Customer B [Member] | Revenue [member]      
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Total Revenue [Line Items]      
Amount of the Group's revenue | RM   9,462,273
Customer Concentration [member] | Customer C [Member] | Revenue [member]      
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Total Revenue [Line Items]      
Amount of the Group's revenue | RM RM 8,263,840   [1]
[1] Revenue from relevant customer was less than 10% of the Group’s total revenue for the respective year.
v3.23.3
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Total Accounts Receivable
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Customer A [Member]      
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Total Accounts Receivable [Line Items]      
Total accounts receivable RM 3,604,500 $ 772,189 RM 4,078,000
Customer B [Member]      
Financial Instruments, Financial Risks and Capital Risks Management (Details) - Schedule of Total Accounts Receivable [Line Items]      
Total accounts receivable
v3.23.3
Fair Value and Fair Value Hierarchy of Financial Instruments (Details) - Schedule of Carrying Amounts that Reasonably Approximate to Fair Values
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Financial assets      
Financial assets at fair value through profit or loss RM 76,044 $ 16,291 RM 72,295
Financial assets at fair value through other comprehensive income 7,002,234 1,500,082 12,819,747
Carrying amount [Member]      
Financial assets      
Financial assets at fair value through profit or loss 76,044 16,291 72,295
Financial assets at fair value through other comprehensive income RM 7,002,234 $ 1,500,082 RM 12,819,747
v3.23.3
Fair Value and Fair Value Hierarchy of Financial Instruments (Details) - Schedule of Fair Value Measurement Hierarchy
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Fair Value and Fair Value Hierarchy of Financial Instruments (Details) - Schedule of Fair Value Measurement Hierarchy [Line Items]      
Financial assets at fair value through profit or loss RM 76,044 $ 16,291 RM 72,295
Financial assets at fair value through other comprehensive income 7,002,234 $ 1,500,082 12,819,747
Quoted prices in active markets (Level 1) [member]      
Fair Value and Fair Value Hierarchy of Financial Instruments (Details) - Schedule of Fair Value Measurement Hierarchy [Line Items]      
Financial assets at fair value through profit or loss  
Financial assets at fair value through other comprehensive income   12,819,747
Significant observable inputs (Level 2) [member]      
Fair Value and Fair Value Hierarchy of Financial Instruments (Details) - Schedule of Fair Value Measurement Hierarchy [Line Items]      
Financial assets at fair value through profit or loss  
Financial assets at fair value through other comprehensive income  
Significant unobservable inputs (Level 3) [member]      
Fair Value and Fair Value Hierarchy of Financial Instruments (Details) - Schedule of Fair Value Measurement Hierarchy [Line Items]      
Financial assets at fair value through profit or loss 76,044   72,295
Financial assets at fair value through other comprehensive income RM 7,002,234  
v3.23.3
Fair Value and Fair Value Hierarchy of Financial Instruments (Details) - Schedule of Movements in Fair Value Measurements - Level 1 of fair value hierarchy [Member] - Unlisted Equity Investments At Fair Value Through Other Comprehensive Income [Member]
6 Months Ended 12 Months Ended
Jun. 30, 2023
MYR (RM)
Jun. 30, 2023
USD ($)
Dec. 31, 2022
MYR (RM)
Fair Value and Fair Value Hierarchy of Financial Instruments (Details) - Schedule of Movements in Fair Value Measurements [Line Items]      
At beginning of year RM 12,819,747 $ 2,746,363 RM 34,221,879
Total unrealized gain recognized in other comprehensive income/(loss) (21,402,132)
Disposal (12,819,747) (2,746,363)
At end of year RM 12,819,747
v3.23.3
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Reconciliation of Liabilities Arising from Financing Activities - MYR (RM)
6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Reconciliation of Liabilities Arising from Financing Activities [Line Items]    
At beginning of year RM 1,837,832 RM 1,210,992
Interest charges 14,821 50,328
Interest paid (14,821) (50,328)
At end of year 1,577,329 1,837,832
Principal (260,503) (325,351)
Proceeds from borrowings   952,191
Bank Borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Reconciliation of Liabilities Arising from Financing Activities [Line Items]    
At beginning of year 443,174 542,384
Interest charges 192 25,560
Interest paid (192) (25,560)
At end of year 342,042 443,174
Principal (101,132) (99,210)
Proceeds from borrowings  
Lease liabilities [member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Reconciliation of Liabilities Arising from Financing Activities [Line Items]    
At beginning of year 744,959
Interest charges 14,629 24,768
Interest paid (14,629) (24,768)
At end of year 585,588 744,959
Principal (159,371) (207,232)
Proceeds from borrowings   952,191
Other Borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Reconciliation of Liabilities Arising from Financing Activities [Line Items]    
At beginning of year 649,699 668,608
Interest charges
Interest paid
At end of year 649,699 649,699
Principal (18,909)
Proceeds from borrowings  
v3.23.3
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment - MYR (RM)
Jun. 30, 2023
Dec. 31, 2022
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities RM 1,577,329 RM 1,837,832
Bank borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 342,042 443,174
Lease liabilities [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 585,588 744,959
Other borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 649,699 649,699
Within one year [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 845,247 1,105,750
Within one year [Member] | Bank borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 32,711 133,843
Within one year [Member] | Lease liabilities [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 162,837 322,208
Within one year [Member] | Other borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 649,699 649,699
2024 [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 540,051 203,679
2024 [Member] | Bank borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 117,300 117,300
2024 [Member] | Lease liabilities [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 422,751 86,379
2024 [Member] | Other borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities
2025 [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 117,300  
2025 [Member] | Bank borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 117,300  
2025 [Member] | Lease liabilities [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities  
2025 [Member] | Other borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities  
2026 [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 74,731 74,731
2026 [Member] | Bank borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities 74,731 74,731
2026 [Member] | Lease liabilities [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities
2026 [Member] | Other borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities
2023 [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities   453,672
2023 [Member] | Bank borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities   117,300
2023 [Member] | Lease liabilities [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities   336,372
2023 [Member] | Other borrowings [Member]    
Reconciliations of Liabilities Arising from Financing Activities (Details) - Schedule of Repayment [Line Items]    
Liabilities arising from financing activities  
v3.23.3
Subsequent Events (Details) - Subsequent Events [Member] - $ / shares
Aug. 07, 2023
Aug. 01, 2023
Subsequent Events (Details) [Line Items]    
Shares issued 14,327 286,533
Value of per shares $ 3.49 $ 3.49

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