It is a policy of the Board of Directors of Saraw ak Consolidated Industries Berhad ("SCIB") in recommending dividend to allow shareholders to participate in the profits, as w ell as to retain adequate reserves for future growth. The declaration of interim dividends and the recommendation of final dividends are subject to the discretion of the Board and any final dividend for the year is subject to the shareholders' approval. As SCIB is a holding company, the company's income, and therefore its ability to pay dividends, is dependent upon the dividends and other distribution receive from the subsidiaries and associates. The payment of dividends by the subsidiaries and associates will depend upon their distributable profits, operating results, financial condition, capital expenditure plans, debt servicing and other obligations or business plan and applicable law s or agreement restricting their ability to pay dividends or make other distribution. In addition, changes in applicable accounting standards may also affect the ability of the subsidiaries and associates, and consequently SCIB's ability, to declare and pay dividends. The actual dividend that the Board may recommend or declare in respect of any particular financial year or period will depend on factors outlined below as well as any other factors deemed relevant by the Board. Upon recommendation by the Board, SCIB will, inter alia, take into account various factors as set out below to determine the level of dividend payments: Level of cash, gearing and return on equity and retained earnings; Expected financial performance; Projected levels of capital expenditure and other investment plans; Working capital requirements; and Any contractual restrictions and /or commitments.