ANNUAL REPORT ACCELERATING SUCCESS ANNUAL …

1 Axcelasia , Level 13 AWisma Goldhill, 67 Jalan Raja Chulan50200 Kuala LumpurTel: (603) 2022 2999 Fax: (603) 2032 REPORT 2016 ACCELERATING SUCCESSANNUAL REPORT 201601 corporate PROFILE02 CHAIRMAN S MESSAGE04 CORE BUSINESS SEGMENTS05 GROUP STRUCTURE06 RECENT DEVELOPMENTS07 FINANCIAL HIGHLIGHTS08 FINANCIAL PERFORMANCE AND OPERATIONAL REVIEW09 BOARD OF DIRECTORS12 corporate INFORMATION13 corporate GOVERNANCE39 DIRECTORS STATEMENT45 INDEPENDENT AUDITOR S REPORT49 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME50 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION51 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY52 CONSOLIDATED STATEMENT OF CASH FLOWS53 NOTES TO THE FINANCIAL

2 STATEMENTS95 SHAREHOLDER INFORMATION97 NOTICE OF ANNUAL GENERAL MEETINGPROXY FORMA xcelasia Inc. (the Company ) was listed on Catalist of the Singapore Exchange Securities Trading Limited (the SGX-ST ) on 27 November 2015. The initial public offering of the Company was sponsored by PrimePartners corporate Finance Pte. Ltd. (the Sponsor ).This ANNUAL REPORT has been prepared by the Company and its contents have been reviewed by the Sponsor for compliance with the SGX-ST Listing Manual Section B: Rules of Catalist. The Sponsor has not verified the contents of this ANNUAL REPORT .

3 This ANNUAL REPORT has not been examined or approved by the SGX-ST. The Sponsor and the SGX-ST assume no responsibility for the contents of this ANNUAL REPORT , including the accuracy, completeness or correctness of any of the information, statements or opinions made or reports contained in this ANNUAL contact person for the Sponsor is Mr Lance Tan, Director, Continuing Sponsorship, at 16 Collyer Quay, #10-00 Income at Raffles, Singapore 049318, telephone (65) 6229 OF CONTENTSA xcelasia Inc. ( Axcelasia and together with its subsidiary corporations, the Group ) is an integrated professional services firm providing tax advisory, business consulting, enterprise management system ( EMS ) applications and business support services.

4 Headquartered in Kuala Lumpur, Malaysia, Axcelasia s clients include public listed companies, private companies, multinational corporations and government-linked Axcelasia s listing on the Singapore Exchange Catalist Board on 27 November 2015, the Group has embarked on an ASEAN expansion and established operations in Singapore, Laos and Group is led by three Executive Directors, Dr. Veerinderjeet Singh, Dato Peter Tang and Mr. Ranjit Singh, who, collectively have more than 95 years experience in the professional services REPORT 2016 corporate PROFILEDEAR SHAREHOLDERS,On behalf of the Board of Directors (the Board ), I am pleased to present the ANNUAL REPORT of Axcelasia Inc.

5 ( Axcelasia or the Group ), for the financial year ended 31 December 2016 ( FY2016 ).FY2016 marks the first full financial year for the Group since our listing on the Singapore Exchange in November 2015. It has been a very busy year for the entire team as we began life as a public listed company. While the listing status has lifted our profile, much more remains to be done as we forge ahead to build up the Axcelasia a stronger balance sheet from funds raised following our initial public offering ( IPO ), we have identified and executed three growth strategies to enhance value for shareholders.

6 These are an asset-light geographical expansion in Malaysia and the ASEAN region, expansion of portfolio of services to develop new revenue streams, and harnessing economies of scale arising from business growth. In line with our geographical expansion within ASEAN, we have achieved our target to establish a footprint in at least three cities immediately after the IPO. Apart from Malaysia, Axcelasia now has offices in Singapore, Laos, and most recently, Vietnam. Through joint ventures and strategic alliances, we have mitigated start-up risks and minimised capital expenditure even as we expand.

7 This approach has allowed us to move quickly even as we seek to grow our business and the Axcelasia brand throughout the region. The expansion has invariably opened up more market opportunities as ASEAN celebrates its 50th anniversary in 2017. The ASEAN Economic Community ( AEC ), which conceives the region as a single market and production base, will open up opportunities in the professional services sub-sector that we operate in. While our first three expansion initiatives have been through joint ventures, we have been on the lookout for earnings-accretive mergers and acquisitions in ASEAN.

8 Subsequent to the financial year end, on 9 March 2017, we announced the million acquisition of Malaysia-based business and corporate governance consultancy firm Audex governance Sdn Bhd ( Audex ). The transaction confers the Group the opportunity to tap on Audex s base of customers including many multinational corporations and public-listed entities to facilitate the cross-selling of Axcelasia s extensive services with a footprint that is well represented in the ASEAN region.

9 It will also allow the Group to immediate recognise additional and recurring revenue streams. Even as we continue to pursue growth, we remain committed to develop new revenue streams. We do this by leveraging on our diverse industry expertise and extending our existing corporate services. Accordingly, we have enlarged our offerings to include a suite of accounting and corporate finance advisory services, which cover mergers and acquisitions, pre-listing preparations, due diligence, share valuations and financial modelling.

10 Such complementary services position the Group strongly to tap on the increasing number of clients who prefer to engage with a single services provider. Our strategy to move up the value chain has started to yield SUCCESS . The Group has since secured mandates in the areas of due diligence, share valuation and accounting standards conversion. The Board is encouraged by the Group s ability to secure such specialised projects imminently and believes these initiatives will help expand Axcelasia s client base. Over the past year, the Group has streamlined internal and operating efficiencies and integrated the administrative functions of our new subsidiaries at Group-level.