On behalf of the Board of Directors of the Company, I have the pleasure of presenting to you the Annual Report and Audited Financial Statements of the Group and the Company for the financial year ended 30 September 2008.

PERFORMANCE REVIEW

For the financial year under review, the Group recorded revenue of RM63.1 million which is marginally higher than that of the preceding financial year.

However, despite the higher revenue received the Group’s net profit sees a decline of RM0.5 million compared to the preceding financial year. The decline in net profit reflects the difficult operating environment with rising cost of production eating into the bottom-line.

The Publishing and production wing of the Group continues to be the major contributor towards the Group’s revenue, coming in at RM52.6 million whereas printing operations shown a slight decrease for the financial year which in many ways reflects the very competitive nature of the industry and shrinking margins.

The Group had ventured into other peripherals of publishing industry with the development of comics for leisure and educational illustrations for magazines and comic books. The Group has also ventured into the franchise programming for kindergarten and tuition centres. Both new ventures have seen very encouraging demands and the Board is confident the same will contribute positively to the Group’s revenue.

CORPORATE DEVELOPMENT

During the financial year under review the Group’s subsidiary Pelangi Publishing Holding Sdn Bhd had in a related party transaction acquired additional equities in one of its associate company and hence resulting in conversion of the associate company’s status to that of a subsidiary albeit not wholly owned. The Board firmly believes the move is necessary to achieve management control and safeguarding its interest as more funds has been or will be committed to the said subsidiary company.

DIVIDENDS

The Board recommends a final dividend of 5.5% less income tax per ordinary share of 50 sen each, amounting to RM1,650,000.00 for approval of Shareholders at the forthcoming Annual General Meeting.