Brahim : Quarterly rpt on consolidated results for the financial period ended 30 Sep 2020

Brahim's Holdings Berhad

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Interim Financial Report

30 September 2020

Brahim's Holdings Berhad

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Unaudited Condensed Consolidated Statement Of Comprehensive Income For The Quarter Ended 30 September 2020

	Individual Quarter		Cumulative Quarters
	3 months ended			9 months ended
	30-Sep			30-Sep
	2020	2019	Changes	2020	2019	Changes
	RM'000		RM'000	%		RM'000		RM'000	%
Continuing Operations
Revenue	8,484	80,498	-89.46%	74,530	224,797	-66.85%
Cost of Sales	(4,157)	(34,447)		(33,409)	(93,366)
Gross Profit	4,327	46,051		41,121	131,431
Other income	169	2,519		900	3,208
Administrative expenses	(41,878)	(41,664)		(108,939)	(123,636)
Other expenses	(7,577)	(2,593)		(11,132)	(7,806)
(Loss)/Profit from operations	(44,959)	4,313	-1142.41%	(78,050)	3,197	-2541.35%
Finance costs	(1,513)	(1,428)		(4,675)	(4,257)
Share of results of jointly
controlled entities	-		341			-		922
(Loss)/Profit before taxation	(46,472)	3,226	-1540.55%	(82,725)	(138)	-59845.65%
Income tax expense	(49)	(745)		(170)	(1,018)
Zakat	-		-			-		-
(Loss)/Profit after taxation	(46,521)	2,481	-1975.09%	(82,895)	(1,156)	-7070.85%
(Loss)/Profit attributable to:
- Owners of the Company	(17,792)	1,804	-1086.25%	(32,675)	(1,607)	-1933.29%
- Non Controlling Interests	(28,729)		677	-4343.57%		(50,220)		451	-11235.25%
	(46,521)	2,481	-1975.09%	(82,895)	(1,156)	-7070.85%
Total comprehensive (loss)/income attributable to:-
- Owners of the Company	(17,792)	1,804		(32,675)	(1,607)
- Non Controlling Interest	(28,729)		677			(50,220)		451
	(46,521)	2,481		(82,895)	(1,156)
Loss per share (RM) attributable to the owners of the Company
Basic	(6.63)	0.67		(12.18)	(0.60)
Diluted	N/A		N/A			N/A		N/A

The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Annual Financial Report for the year ended 31 December 2019.

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Brahim's Holdings Berhad

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Condensed Consolidated Statement Of Financial Position As At 30 September 2020

	As At		As At
	30.09.2020	31.12.2019
	RM'000		RM'000
	(Unaudited)		(Audited)
ASSETS
Non Current Assets
Property, plant and equipment	57,158	66,982
Goodwill on consolidation	102,354	102,354
Deferred tax assets	9,576		9,704
	169,088	179,040
Current Assets
Inventories	4,976	8,096
Trade receivables	19,346	57,216
Other receivables, deposits and prepayments	4,752	6,647
Tax recoverable	888	2,872
Amount owing by related companies	81	87
Fixed deposits with a licensed bank	7,858	17,643
Cash and bank balances	5,720		27,082
	43,621		119,643
TOTAL ASSETS	212,709	298,683
EQUITY & LIABILITIES
Equity attributable to equity holders
Share capital	268,266	268,266
Accumulated losses	(280,556)		(247,881)
Shareholders' Equity	(12,290)	20,385
Non Controlling Interest	40,610		90,830
Total Equity	28,320	111,215
Non-Current Liabilities
Other payables	924	1,353
Long-term borrowings	3,428		3,792
	4,352	5,145
Current Liabilities
Trade payables	45,149	36,063
Other payables and accruals	38,922	32,844
Short-term borrowings	87,613	92,190
Amount due to related company	860	865
Advances from a Director	6,889	6,889
Tax liabilities	42	8
Provision for zakat	562	564
Provision for Contigent Liabilities	-		12,900
	180,037		182,323
Total Liabilities	184,389		187,468
TOTAL EQUITY AND LIABILITIES	212,709	298,683
Net assets per share attribulate to ordinary
equity holders of the Company (RM)	(0.05)	0.08

The Condensed Consolidated Statement of Financial Position should be read in conjunction with the Annual Financial Report for the year ended 31 December 2019.

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Brahim's Holdings Berhad

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Unaudited Condensed Consolidated Statement Of Changes In Equity For The Year Ended 30 September 2020

		Accumulated		Non-Controlling
	Share Capital	losses	Total	Interest	Total
	RM'000	RM'000	RM'000	RM'000	RM'000
At 1 January 2020	268,266	(247,881)	20,385	90,830	111,215
Total comprehensive loss	-	(32,675)	(32,675)	(50,220)	(82,895)
At 30 September 2020	268,266	(280,556)	(12,290)	40,610	28,320
At 1 January 2019	268,266	(232,528)	35,738	88,977	124,715
Total comprehensive loss	-	(15,353)	(15,353)	1,853	(13,500)
At 31 December 2019	268,266	(247,881)	20,385	90,830	111,215

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Annual Financial Report for the year ended 31 December 2019.

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Brahim's Holdings Berhad

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Unaudited Condensed Consolidated Statement Of Cash Flows For The Financial Year Ended 30 September 2020

	9 months ended
	As at		As at
	30.09.2020	30.09.2019
	(Unaudited)		(Unaudited)
	RM'000		RM'000
Operating activities
Profit/(Loss) before tax	(82,725)	(138)
Adjustment for:-
Impairment losses on:
Amortisation and depreciation	20,554	6,445
Interest expense	3,304	4,218
Interest income	(183)	(296)
Tax Expense	170	990
Share of results in joint ventures	-		(922)
Operating profit before working capital changes	(58,880)	10,297
(Increase)/Decrease in inventories	3,120	283
(Increase)/Decrease in receivables	39,644	(28,205)
Increase/(Decrease) in intercompany balances	1	114
Increase/(Decrease) in payables	1,778		18,448
Cash generated from/(used in) operations	(14,337)	937
Interest paid	579	(342)
Tax refund/(paid)	1,982		6,986
Net cash generated from/(used to) operating activities	(11,776)	7,581
Investing activities
Interest income	183	296
Dividends from JV	-	2,040
Withdrawal/(Placement) of deposits pledged with licensed banks	88	(600)
Purchase of plant and equipment	(10,729)		(5,939)
Net cash used in investing activities	(10,458)	(4,203)
Financing activities
Repayment of term loans	(3,500)	-
Repayment of lease and hire-purchase	(5,325)		(4,158)
Net cash (used to)/generated from financing activities	(8,825)		(4,158)
Net increase in cash and cash equivalents	(31,059)	(780)
Cash and cash equivalents at the beginning of financial year	37,019	12,217
Cash and cash equivalents at the end of financial period	5,960		11,437
Cash, bank balances and fixed deposits with licensed banks	13,578	14,042
Bank overdrafts	-	(254)
Deposits pledged to licensed banks	(7,618)	(2,351)
	5,960		11,437

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Brahim's Holdings Berhad

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Notes To The Interim Financial Report

A Explanatory Notes Pursuant to MFRS134

1. Basis of preparation

The condensed consolidated interim financial information are not audited and have been prepared in accordance with Malaysian Financial Reporting Standards (MFRS 134) "Interim Financial Reporting" and paragraph 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad.

The condensed consolidated interim financial information should be read in conjunction with the annual financial report for the year ended 31 December 2019. These explanatory notes attached to the financial report provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group.

2. Changes in Accounting Policies

The accounting policies and methods of computation adopted for the condensed interim financial information are consistent with those adopted for the audited financial statements for the financial year ended 31 December 2019 except for the adoption of the following with effect from 1 January 2020:

Amendments to MFRS 3	Business Combinations
Amendments to MFRS 7	Financial Instruments: Disclosures
Amendments to MFRS 9	Financial Instruments
Amendments to MFRS 101	Presentation of Financial Statements
Amendments to MFRS 108	Accounting Policies, Changes in Accounting
	Estimates and Error
Amendments to MFRS 139	Financial Instruments: Recognition and
	Measurement

The initial application of the new MFRS does not have any material impact to the financial results of the Group for the current period and prior periods, other than as disclosed below:

MFRS 16: Leases

MFRS 16 'Leases' supersedes MFRS 117 'Leases' and the related interpretations. Under

MFRS 16, a lease is a contract (or part of a contract) that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group and the

Company currently assessing all of the Group's leasing arrangements in light of the new lease

accounting rules in MFRS 16. The standard will affect primarily the accounting for the Group's operating leases, which comprise mainly the operating leases for land and building. The Group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption. Right-of-use assets for property leases will be measured on transition as if the new rules had always been applied. All other right-of-use assets will be measured at the amount of the lease liability on adoption (adjusted for any prepaid or accrued lease expenses).

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Brahim's Holdings Berhad

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Notes To The Interim Financial Report

2. Changes in Accounting Policies (continued)

MFRS and amendments to MFRSs and IC Interpretations that are applicable to the Group but not yet effective

The Malaysian Accounting Standards Board had issued the following new standards, amendments to MFRSs and IC Interpretation which are effective for the financial period beginning on or after 1 January 2023. The Group did not early adopt these new standards, amendments to MFRSs and IC Interpretation.

Effective date 1 January 2023
MFRS 17	Insurance Contracts
Amendments to MFRS 1	First-time Adoption of MFRS
Amendments to MFRS 5	Non-current Assets Held for Sale and Discontinued
	Operations
Amendments to MFRS 15	Revenue from Contracts with Customers
Amendments to MFRS 107	Statements of Cash Flows
Amendments to MFRS 116	Property, Plant and Equipment
Amendments to MFRS 119	Employee Benefits
Amendments to MFRS 128	Investments in Associates & Joint Ventures
Amendments to MFRS 136	Impairment of Assets
Amendments to MFRS 138	Intangible Assets

3. Auditors' Report

There was qualified opinion with emphasis matter on going concern on the audited financial statements for the financial year ended 31 December 2019.

4. Seasonal or cyclical factors

The Group's operations were not significantly affected by any significant seasonal or cyclical factors during the financial quarter under review.

5. Unusual items

There were no unusual items affecting assets, liabilities, equity, net income or cash flows of the Group during the financial quarter under review.

6. Changes in estimates

There were no significant changes in the estimates reported in the prior financial year, which have a material effect in the current reporting quarter.

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Brahim's Holdings Berhad

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Notes To The Interim Financial Report

7. Segmental reporting

	Individual Quarter		Cumulative Quarters
	3 months ended		9 months ended
			30 Sept				30 Sept
	2020	2019		Changes	2020	2019		Changes
	RM '000		RM '000		RM '000		RM '000
	(Unaudited)	(Unaudited)	%	(Unaudited) (Unaudited)	%
Segment Revenue
Revenue from continuing
operations:
In-flight catering & related	6,628	78,537		-92%	68,778	218,899		-69%
services
Logistics and related services	1,856	1,866		-1%	5,752	5,619		2%
Holding Company	-		95		-100%	-		279		-100%
Total revenue including inter-	8,484	80,498		-89%	74,530	224,797		-67%
segment revenue
Segment results
Results from continuing
operations:
In-flight catering & related	(44,426)	3,091		-1537%	(77,162)	2,830		-2827%
services
Logistics and related services	75	136		-45%	853	253		237%
Trading	(14)	(6)		-139%	(25)	(24)		-6%
Food and beverage	(3)	(9)		67%	(6)	(40)		85%
Sugar refinery	(12)	(10)		-17%	(18)	(26)		32%
Holding Company	(579)		1,111		-152%	(1,692)		204		-929%
Operating (loss)/profits from	(44,959)	4,313		-1142%	(78,050)	3,197		-2541%
continuing operations
Finance costs	(1,513)	(1,429)			(4,675)	(4,258)
Share of results from Joint	-	341			-	922
Venture
(Loss) before taxation	(46,471)	3,225		-1541%	(82,724)	(139)		-59414%
Income tax (expense)	(49)		(745)			(170)		(1,018)
(Loss) after taxation	(46,521)		2,480		-1976%	(82,895)		(1,157)		-7065%

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Brahim's Holdings Berhad

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Notes To The Interim Financial Report

8. Debt and equity securities

There were no issuance, cancellation, repurchase, resale and repayment of debts and equity securities for the current financial year.

9. Dividends paid

No dividend was paid during the current quarter ended 30 September 2020.

10. Valuation of Property, Plant and Equipment

The valuations of property, plant and equipment of the Group have been brought forward without amendments from the previous annual financial statements.

11. Material Events Subsequent to the End of Interim Period

The was no material event subsequent to the end of the current quarter.

12. Changes in composition of the Group

There were no major changes in composition of the Group during the quarter under review.

13. Changes in Contingent Liabilities or Contingent Assets

There were no major changes in contingent liabilities or assets during the quarter under review since the last annual balance sheet date.

14. Capital Commitments

	30.09.2020	30.09.2019
	RM'000		RM'000
Approved and contracted for :-
Property, plant and equipment	168	380
Computer software	234	-

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Brahim's Holdings Berhad

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Notes To The Interim Financial Report

15. Related Company Transactions

The related company transactions of the Group had been entered into in the ordinary course of business. Below are the significant transactions with the related parties of the Group during the current financial period.

	Individual Quarter		Cumulative Quarters
	3 months ended		9 months ended
	30 Sept			30 Sept
	2020			2019	2020			2019
	RM'000	RM'000		RM'000	RM'000
Management fees received/
receivable from a joint venture	-			95		-			279

16. Derivative

The company did not issue or enter and capitalise any gain or losses with regards to derivative issued or subscribed.

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Brahim's Holdings Berhad

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Interim Financial Report

30 September 2020

Additional information required by the

Bursa Malaysia's Main Market Listing Requirements

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Brahim's Holdings Berhad

Appendix II

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Additional information required

by the Bursa Malaysia's Listing Requirements

1. Selected Explanatory Notes to the Interim Financial Report (Part A of Appendix 9B of Bursa Malaysia's Main Market Listing Requirements

1. Performance Analysis

In the third quarter of 2020, the Group recorded a 89.46% decrease in revenue to RM8.48 million compared with the corresponding period in 2019 of RM80.50 million.

The Group recorded a pre-tax loss of RM46.47 million in the current quarter as compared to a pre-tax profit of RM3.23 million in the corresponding quarter of the previous year.

Performance of the respective operating segments are analysed as follows:-

In-flight catering and related services

Pursuant to flight cancellations in the wake of COVID-19 where international borders are mostly closed, the performance of in-flight catering and related revenue in the services received big impact and show decreasing trend when compared to the revenue in the corresponding year. Revenue for the current quarter decreased by RM71.9 million or 92%, closing at RM6.63 million compared with a revenue of RM78.54 million in the same quarter last year.

This segment recorded from operating losses of RM44.43 million as compared to a profit of RM3.09 million for the same quarter last year, a decrease by 1537%.

Logistics and related services

Current quarter's revenue contributed by the logistics and related services segment has been maintain on track. Its registered a slightly decrease in revenue of 1%, or RM10,000 lower to RM1.86 million as compared to RM1.87 million in the corresponding quarter last year. The warehouse occupancy rate continued to remain stable.

Segmental results for the quarter was a profit of RM75,000, an decrease by 45% compared with the corresponding quarter in last year of RM136,000.

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Brahim's Holdings Berhad

Appendix II

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Additional information required

by the Bursa Malaysia's Listing Requirements

2. Comparison with immediate preceding quarter's result

Compared to the immediate preceding quarter's results, the Group's revenue reported an decrease from RM8.06 million to RM6.63 million, an decrease of RM1.43 million or 17.74%.

The Group recorded a loss before tax of RM46.52 million for this quarter as compared to a loss before tax of RM25.16 million in the immediate preceding quarter.

3. Current year prospects

In-Flight Catering and related services

The aviation and hospitality industries has been severely affected by the global Covid-19 pandemic which hit the world in early February until now and have changed the landscape of the market entirely.

In-Flight catering division is expected to record an adverse performance for full year 2020 as due to this Covid-19 implication. Even the prospect on aviation segment remain uncertain, any policies or incentives set and announce by the government with regards to the aviation industries will certainly give positive implication to this segment.

It is expected for the aviation and hospitality industries to be able to recover progressively in the future.

Logistics and related services

The logistics segment continues to maintain its business volume and contribute positively to the group's financial position. This segment looking into expending business models and expending its operations, to streamline the cost structure become positive. This segment will continue the effort to acquire new customers and businesses to increase the revenue stream.

4. Statement on Revenue or Profit Estimate, Forecast, Projection or Internal Targets Previously Announced or Disclosed in a Public Document

Not applicable as the Group has not issued any profit forecast or profit guarantee.

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Brahim's Holdings Berhad

Appendix II

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Additional information required

by the Bursa Malaysia's Listing Requirements

5. Taxation

	Individual Quarter			Cumulative Quarters
	3 months ended			9 months ended
	30 Sept				30 Sept
	2020			2019	2020				2019
	RM'000	RM'000			RM'000	RM'000
Current tax:
-for the financial period/year	50			745	42				904
Deferred taxation	(1)			-	128				114
	49			745			170				1,018

The Group's effective tax rate is lower than statutory tax rate due to certain expenses being disallowed for tax purposes and deferred tax assets recognised for some entities within the Group.

6. Status of corporate proposal

The Group is not engaged in any corporate proposal as at the date of this report.

7. Borrowings

			30.09.2020	31.12.2019
					RM'000				RM'000
a)	Short term borrowings
	Secured
	- Term loans	77,568	77,184
	- Hire purchase and lease payables	10,045		15,006
			87,613	92,190
b)	Long term borrowings
	Secured	-	-
	- Term loans
	- Hire purchase and lease payables		3,428		3,792
					3,428	3,792
				91,041				95,982
The above borrowings are denominated in the following currencies:-
- Ringgit Malaysia	87,387	92,328
- United States Dollar	3,654	3,654
			91,041			95,982

- 13 -

Brahim's Holdings Berhad

Appendix II

(Company No. 198201002985 [82731-A])

(Incorporated in Malaysia)

Additional information required

by the Bursa Malaysia's Listing Requirements

8. Changes in material litigation

No new update since last reporting date.

9. Dividend

No dividend has been proposed in respect of the current financial year.

10. (Loss)/Earning per share

		Individual Quarter	Cumulative Quarters
		3 months ended	9 months ended
		30.09.20	30.09.19	30.09.20	30.09.19
Basic earning/(loss) per
share
(Loss)/Earning attributable	(RM'000)	(17,792)	1,804	(32,675)	(1,607)
to owners of the company
Weighted average	('000)	268,266	268,266	268,266	268,266
number of ordinary
shares in issue
Basic (Loss)/Earning per	(Sen)	(6.63)	0.67	(12.18)	(0.60)
share

The calculation of basic (loss) per share for the respective periods is arrived at by dividing the earning/(loss) attributable owners of the Company by the weighted average number of ordinary shares issued during the financial period/year.

There is no disclosure on diluted loss per share as there were no potential ordinary shares outstanding at the end of the reporting period/year.

11. Authorisation for Issue

The interim financial information was duly approved by the Board of Directors on 27 November 2020.

- 14 -