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Directors’ Report

VITROX CORPORATION BERHAD

[649966-K]

PURCHASE OF OWN SHARES

The shareholders of the Company, by a resolution passed at the Extraordinary General Meeting held on 21 November 2008, approved

the Company’s plan to purchase its own shares. The directors are committed to enhancing the value of the Company to its

shareholders and believe that the purchase plan can be applied in the best interests of the Company and its shareholders. The

Company has yet to purchase any of its own shares as at 31 December 2008.

The mandate given by the shareholders at the abovementioned Extraordinary General Meeting will expire at the forthcoming

Annual General Meeting at which a resolution will be tabled for shareholders to grant a fresh mandate for another year.

BAD AND DOUBTFUL DEBTS

Before the financial statements of the Group and the Company were made out, the directors took reasonable steps to ascertain

that action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts and satisfied

themselves that there were no known bad debts and that adequate allowance had been made for doubtful debts.

At the date of this report, the directors are not aware of any circumstances which would require the writing off of bad debts or

render the amount of the allowance made for doubtful debts inadequate to any substantial extent.

CURRENT ASSETS

Before the financial statements of the Group and the Company were made out, the directors took reasonable steps to ascertain

whether any current assets which would be unlikely to realise their book values in the ordinary course of business have been written

down to their estimated realisable values.

At the date of this report, the directors are not aware of any circumstances that would render the values attributed to the current

assets in the financial statements of the Group and the Company misleading.

VALUATION METHOD

At the date of this report, the directors are not aware of any circumstances which have arisen which render adherence to the existing

methods of valuation of assets or liabilities of the Group and the Company misleading or inappropriate.

CONTINGENT AND OTHER LIABILITIES

At the date of this report, there does not exist:-

(i)

any charge on the assets of the Group or the Company that has arisen since the end of the financial year which secures the

liabilities of any other person; or

(ii) any contingent liability in respect of the Group or the Company that has arisen since the end of the financial year.

No contingent liability or other liability of the Group or the Company has become enforceable, or is likely to become enforceable

within the period of twelve months after the end of the financial year which, in the opinion of the directors, will or may substantially

affect the ability of the Group and the Company to meet their obligations as and when they fall due.