On Behalf of the Board Of Directors, I am pleased to present the Annual Report and Auditted Financial Statements of Versatile Creative Berhad (“VCB”) and its subsidaries (“The Group”) for the financial year ended 31 March 2023 (“FYE 2023”).
During FYE 2023, the Group continued to operate within a challenging environment. On the macro level, global economy was also severely tested by uncertainties and challenges arising from the prolonged impact of the pandemic-triggered recession with many sectors are still in the recovering process amid persistent inflation, business cost pressures and global supply chain disruptions. FYE 2023 also marked the unfolding of several major events which created a wave of economic uncertainty around the world. While many countries have lifted travel restrictions, the escalating geopolitical tensions and China’s zero-COVID policy have disrupted supply chains and resulted in rising energy and food prices. The concerted efforts by central banks to hike interest rates in order to combat inflation have also increased concerns on he headwinds posed by a looming global recession. Despite operating under such trying environment, the Group did very well as compared to previous financial years.
FINANCIAL PERFORMANCE
The Group’s manufacturing division recorded an increase of 10.25% in its revenue to RM49.24 million in FYE 2023 as compared to the previous financial year ended 31 March 2022 (“FYE 2022”) of RM44.66 million.
The Group’s revenue for FYE 2023 also increased by 165.71% as compared to FYE 2022 mainly contributed by the new income source from the grocery business. During FYE 2023, the Group operated three (3) grocery stores in the Klang Valley, which contributed a total revenue of RM95.76 million, representing 65.91% of the Group’s revenue in the FYE 2023. A detailed review of the performance and results of the Group’s major segments is set forth under the Management Discussion and Analysis in this Annual Report.
OUTLOOK AND FUTURE STRATEGIES
More than two years on, as the COVID-19 pandemic gradually returns to pre-pandemic normalcy, we continue to live in a state of constant change. Disruptive events such as the Russia-Ukraine war, rise in global and inflationary rates, revision to minimum wage rate and the tightening of labour market along with the weakening Ringgit Malaysia against major currencies are challenges at our door-steps. The Board views that these challenges will present opportunities and drive value to the Group.
Year 2023 has been and will be a year of continued challenges and opportunities. The Group is fortunate that its operations did not face major business disruptions amidst the growing uncertainties due to its diversified business base. We will continue to demonstrate resilience by placing emphasis on improving our efficiency and ensuring the health, safety, and security of our employees. We look forward to seek excellent business opportunities and add synergy to our existing businesses. We continue to drive business expansion in the grocery division to diversify our income streams going forward.
APPRECIATION
On 26 July 2022, we bid farewell to Mr. Chang Chen Seng, our Independent Non-Executive Director who resigned from the Board. I would like to thank Mr.Chang for his invaluable guidance and contributions during his years of service to the Board and Board Committees. The Board and I wish him well for the future. The Board and I are proud of team VCB and their demonstration of teamwork and relentless efforts outstanding results for the Group for FYE 2023. On that note, on behalf of the Board, I would also like to thank team VCB for their resilience and dedication.
My warmest regards are also extended to our shareholders, esteemed customers and suppliers, financial institutions and other stakeholders for their continued support and confidence in the Group. I believe that team VCB, with the guidance of the Board and support from the management, will prevail in strengthening adaptation of various initiatives for sustainability to meet standards and demand, thus enhancing a sustainable future for the Group moving forward. May we continue to work together and strive forward to reach for more opportunities and achieve business growth and success for the betterment of the Group in the coming years.
Tan Sri Dato’ Seri Mohd Shariff Bin Omar
Independent Non-Executive Chairman
21 July 2023
CG Report