Replace - Extraordinary/ Special General Meeting :: Voluntary

BEST WORLD INTERNATIONAL LTD

(Company Registration: 199006030Z)

Incorporated in the Republic of Singapore

Extraordinary General Meeting to be held on 31 December 2021

Responses to substantial questions relevant to the Resolutions

No.	Questions from Shareholders		Replies
		Ordinary Resolution 1

1 Ernst & Young (EY) is a top tier auditor vs Nexia TS (mid- level). Would you not think Investors (existing & new) be more sceptical of BWL's financials, policies & operation structures?

Going forward, how can BWL allay those concerns?

What can Nexia do or help you that E&Y cannot or will not?

You did mention cost consideration as one reason for the change of the Auditor. What is the cost savings in dollar terms and in %?

As mentioned in the Appendix Note 2.1 and 2.2, as part of good corporate governance initiatives and the Group's ongoing efforts to manage its overall business costs and expenses amidst the challenging business climate, the Board is of the view that it would be appropriate and timely to effect a change of Auditor of the Company, which would enable the Company to benefit from fresh perspectives and views of another professional audit firm, thus enhancing the value of the audit of the Group.

Having operations in Singapore, Malaysia, Myanmar and the People's Republic of China, Nexia TS's offices have been ranked among top firms in their respective countries. Nexia TS is also ranked 10th worldwide for their accounting and consulting practices. Several directors of Nexia TS are audit committee members of listed companies in Singapore and have many years of experience in corporate governance and control issues surrounding public interest entities. Nexia TS is a certified public accounting corporation, and a member of the Institute of Singapore Chartered Accountants ("ISCA").

Based on the Board's and Audit Committee's assessment, the appointment of Nexia TS will not compromise the quality of the Company's audit.

The Group also expects cost savings of approximately S$113,000 arising from the Proposed Change of Auditor, which is approximately 19% savings based on FY2020 audit fees incurred for the entities previously audited by E&Y.

2	As the external auditor will be changed to Nexia TS, the	These issues will be addressed as part of FY2021 audit. To date, the
	disclaimer of opinion by E&Y on issues, relationship with	audit for FY2021 has not commenced and will commence upon the
	the Group's import agent and marketing agent and	appointment of the new auditors during the upcoming EGM.
	classification of payments to promotional companies, have
	been resolved?
	Ordinary Resolution 2
3	Please provide more detail as to the additional control	The Company will formalise a share buyback procedure which include
	measures the Company intends to take to prevent the	an email template highlighting the number of shares to be repurchased,
	recurrence of the administrative oversight that resulted in	the validity period of the mandate, as well as a formal written process
	share-buy backs without Shareholder approval	from the approver to approve the share buyback transaction.
	Special Resolution 1
4
	Would you kindly simplify the main motivation behind the	The Company's Constitution was last amended in 2012. The proposed
	amendments of the constitution? Is it for more leeway &	amendments to the Constitution are primarily made to align the
	flexibility?	Constitution with updates to applicable laws since then, including
		amendments to the Companies Act (Cap. 50) of Singapore introduced in
	With the change, how will it help BWL to improve your	2014 and 2017, and the Personal Data Protection Act 2012, in the
	current situation?	interests of good corporate governance and greater business flexibility,
		crucial for long-term business sustainability and accountability.
	Will it help pave the way for re-listing & bring value back to
	all investors (including your good selves)?	The key changes include, amongst others, the introduction of a multiple-
		proxies regime to enfranchise indirect investors and CPF investors,
		provisions addressing the Company's collection, use and disclosure of
		members' personal data, as well as provisions to facilitate the electronic
		transmission of notices and documents.