of 102
8/14/2019 Idaman Unggul 2005 Annual Report
1/102Idaman Unggul Berhad Annual Report 2005 l 1
annual report 2005A New Era
Idaman Unggul Berhad(279343-W)
8/14/2019 Idaman Unggul 2005 Annual Report
2/102Idaman Unggul Berhad Annual Report 2005 l 2
8/14/2019 Idaman Unggul 2005 Annual Report
3/102Idaman Unggul Berhad Annual Report 2005 l 3
Content
Directors Report And Financial Statements
23-27 Directors Report
28 Statement By Directors
28 Statutory Declaration
29-30 Report Of The Auditors
31 Income Statements
32-33 Balance Sheets
34 Consolidated Statement Of Changes In Equity
35 Statement Of Changes In Equity
36-37 Cash Flow Statements
38-87 Notes To The Financial Statements
2 Corporate Structure
3-4 Notice Of Annual General Meeting
5 Corporate Information
6-7 Profiles Of Directors
8-12 Corporate Governance Statements13-14 Statement of Internal Control
15-17 Report On Audit Committee
18 Additional Compliance Information
19-21 Chairman s Statement
88-89 Statement Of Shareholdings
90 Substantial Shareholders
90 Directors Shareholdings
91-92 Statement Of Iculs-A Holdings
93 Directors Iculs-A Holdings
94-95 Statement Of Iculs-B Holdings
96 Directors Iculs-B Holdings
97-98 List Of Properties
99 Proxy Form
8/14/2019 Idaman Unggul 2005 Annual Report
4/102Idaman Unggul Berhad Annual Report 2005 l 2
Tahan Insurance
Malaysia Berhad
100%
PCM Synergy Sdn Bhd100%
F. T. Land Sdn Bhd
100%
Waikiki Beach Hotel
Sdn Bhd
100%
Talapia Jati Sdn Bhd
100%
IUB Asset Management
Sdn Bhd
100%
Corporate Structure(as at 1 August 2006)
IDAMAN UNGGUL BERHAD(279343-W)
(Incorporated in Malaysia)
Special Purpose
Vehicle
Information and
Communication
Technology
Financial ServicesInvestment
Holding
Lambang Pertama Sdn Bhd
100%
Idris Hydraulic
(Malaysia) Bhd100%
PICT Solution Sdn Bhd
100%
Straight Effort Sdn. Bhd.
100%
Idaman Investment Ltd
100%
Idaman Solar
(Indonesia) Ltd
51%
Idaman Monarch(Philippines) Ltd
100%
Kenangan Cergas
(M) Sdn. Bhd.
100%
Sagisan Sdn.
Bhd.
100%
Syarikat Sogon
Bersaudara
Sdn.Bhd.
100%
Tenju Sdn. Bhd.
100%
Bintang Tawau
Sdn. Bhd.
100%Syarikat Sabakina
Sdn Bhd
100%
Resolute
Enterprise
Sdn Bhd
100%
Mee Cheong
Sdn Bhd
100%
IHMB Wood
Holdings Sdn Bhd
100%
IHMB Timber
Sdn Bhd100%
Naluri Ultra
Sdn Bhd
100%
Societe Forestiere
de Tchibanga
48%
Idris Hydraulic
Industries
Sdn. Bhd.
100%
Wiragain Sdn.
Bhd.
100%
Idris Bersatu
Management
Sdn Bhd
100%
Magnitude Ace
(M) Sdn. Bhd.
100%
Prisma Pertiwi
Sdn Bhd
100%
Teras Hemat
Sdn Bhd
100%
Idris Hydraulic
Properties
Sdn. Bhd.
100%
Fujasa Sdn. Bhd.
100%
Idris Hydraulic
Investment
(Myanmar) Ltd.
100%
Hasrat Sanjung
(M) Sdn. Bhd.
100%
Idris Hydraulic
Vencap Sdn. Bhd.
100%
Idris Hydraulic
Realty Sdn. Bhd.
100%
Simfoni Pedoman
Sdn. Bhd.
100%
Edisi Dekad
Sdn. Bhd.
100%Naungan Erat
Sdn. Bhd.
100%
Klinker
Investments Ltd
100%
Anscan
International Ltd
50% + 1
Finmark Ltd
100%
APW Pty Ltd
100%
Fiowin
Investments
Limited
100%
Inlandpark
Sdn. Bhd.
100%
Kekal Asal
Sdn. Bhd.
100%
Idris Hydraulic
Leisure Services
Sdn. Bhd.
100%
Keys
Directly held by IUB
Indirectly held by IUB
AE Kredit
Sdn. Bhd.
100%
Idris Hydraulic
Capital Sdn. Bhd.
100%
8/14/2019 Idaman Unggul 2005 Annual Report
5/102Idaman Unggul Berhad Annual Report 2005 l 3
Notice Of 3rd Annual General Meeting
NOTICE IS HEREBY GIVEN THAT the Third Annual General Meeting of the Company will be held at Royal
Ballroom, Kelab Golf Sultan Abdul Aziz Shah, No. 1, Rumah Kelab, Jalan Kelab Golf 13/6, Seksyen 13, 40100
Shah Alam, Selangor Darul Ehsan on Wednesday, 30 August 2006 at 9.00 a.m to transact the following business :
1. To receive and adopt the Audited Financial Statements of the Company for the year
ended 31 December 2005 and the Reports of the Directors and Auditors thereon.
[Resolution 1]
2. To re-elect Dato Ab. Halim bin Mohyiddin who retires by rotation in accordance with
Article 97 of the Company s Articles of Association and being eligible, offers himself
for re-election.
[Resolution 2]
3. To re-elect Datuk Che Mokhtar bin Che Ali who retires by rotation in accordance with
Article 97 of the Company s Articles of Association and being eligible, offers himself
for re-election.
[Resolution 3]
4. To approve the payment of Directors fees. [Resolution 4]
5. To re-appoint Messrs. Ernst & Young as Auditors of the Company and to hold office
until the conclusion of the next Annual General Meeting, at a remuneration to be
determined by the Directors.
[Resolution 5]
AS SPECIAL BUSINESS
6. To consider and if thought fit, to pass the following Ordinary Resolution :
Authority to Allot and Issue Shares Pursuant to Section 132D of the Companies
Act 1965
THAT, subject always to the Companies Act, 1965, the Articles of Association
of the Company and the approvals of the relevant governmental and/or regulatory
authorities, the Directors be and are hereby empowered pursuant to Section 132D of
the Companies Act, 1965, to issue and allot shares in the Company from time to time
and upon such terms and conditions and for such purposes as the Directors may deem
fit provided that the aggregate number of shares issued pursuant to this resolution doesnot exceed 10% of the issued share capital of the Company and that such authority
shall continue in force until the conclusion of the next Annual General Meeting of the
Company.
[Resolution 6]
7. To transact any other ordinary business of which due notice shall have been given.
BY ORDER OF THE BOARD
QUAH KHIAN KHOON (MAICSA 7030264)
Secretary
9 August 2006
8/14/2019 Idaman Unggul 2005 Annual Report
6/102Idaman Unggul Berhad Annual Report 2005 l 4
Notice Of 3rd Annual General Meeting (Contd)
Notes :
1. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and vote in his
stead. A proxy need not be a member of the Company.
2. Subject to the Act, where a member appoints two proxies, the appointment shall be invalid unless he specifies
the proportions of his holding to be represented by each proxy.
3. The instrument appointing a proxy shall be in writing under the hand of the appointor or his attorney duly
authorised in writing or if such appointor is a corporation, either under its common seal or the hand of an
officer or attorney duly authorised.
4. The Form of Proxy must be completed, signed and deposited at the Company s Registered Office not less than
48 hours before the time set for the meeting or adjourned meeting.
EXPLANATORY NOTES ON SPECIAL BUSINESS
Resolution No. 6 : Authority to Issue and Allot Shares
The proposed ordinary resolution is primarily to give flexibility to the Board of Directors to issue and allot shares
at any time in their absolute discretion without convening a general meeting.
1. DIRECTORS WHO ARE STANDING FOR RE-ELECTION
The Directors retiring by rotation pursuant to Article 97 of the Articles of Association are :
(a) Dato Ab. Halim bin Mohyiddin; and
(b) Datuk Che Mokhtar bin Che Ali
The details of the Directors seeking for re-election are outlined on pages 6 & 7 of the Annual Report 2005.
2. DETAILS OF ATTENDANCE AT BOARD MEETING
A total of seven (7) Board Meetings were held during the financial year ended 31 December 2005.
Details of attendance of the Directors are set out in the Profile of Directors appearing on page 9 of the Annual
Report.
3. PLACE, DATE & TIME OF THE GENERAL MEETING
The Second Annual General Meeting of the Company was held during the financial year ended 31 December
2004 at the Royal Ballroom, Kelab Golf Sultan Abdul Aziz Shah, No. 1, Rumah Kelab, Jalan Kelab Golf 13/6,
Seksyen 13, 40100 Shah Alam, Selangor Darul Ehsan on Thursday, 30 June 2006 at 9.00 a.m.
Statement Accompanying Notice OfAnnual General Meeting
8/14/2019 Idaman Unggul 2005 Annual Report
7/102Idaman Unggul Berhad Annual Report 2005 l 5
Corporate Information
Board Of Directors
Dato Che Mohd Annuar bin Che Mohd Senawi
(Executive Chairman)
Dato Ab. Halim bin Mohyiddin
(Independent, Non-Executive Director)
Datuk Che Mokhtar bin Che Ali
(Non-Independent, Non-Executive Director)
Haji Hussein bin Hamzah
(Independent, Non-Executive Director)
Brig. Jen. (B) Dato Pahlawan Hj Jamil bin Tahir
(Independent, Non-Executive Director)
Dr. Radzuan bin Abdul Rahman
(Independent, Non-Executive Director)
Audit Committee
Haji Hussein bin Hamzah
(Chairman/Independent, Non-Executive Director)
Dato Ab. Halim bin Mohyiddin
(Independent, Non-Executive Director)
Brig. Jen (B) Dato Pahlawan Hj Jamil bin Tahir
(Independent, Non-Executive Director)
Dr. Radzuan bin Abdul Rahman
(Independent, Non-Executive Director)
Company Secretary
Quah Khian Khoon
(MAICSA No. 7030264)
Registered Office
Level 20, Menara MRCB
No. 2, Jalan Majlis 14/10, Seksyen 14
40000 Shah Alam
Selangor Darul Ehsan
Tel : 03-55103222 Fax : 03-55102333
Share Registrar
Symphony Share Registrars Sdn. Bhd.
Level 26, Menara Multi Purpose
Capital Square
No. 8 Jalan Munshi Abdullah
50100 Kuala Lumpur
Tel : 03-27212222 Fax : 03-27212530
Auditors
Messrs. Ernst & Young
Principal Bankers
Bumiputra Commerce Bank Berhad
Stock Exchange
The Main Board of the Bursa Malaysia Securities
Berhad
8/14/2019 Idaman Unggul 2005 Annual Report
8/102Idaman Unggul Berhad Annual Report 2005 l 6
Profile Of Directors
Dato Che Mohd Annuar Bin Che MohdSenawiExecutive Chairman Member of the Remuneration
Committee
Dato Che Mohd Annuar Bin Che Mohd Senawi (Dato
Annuar), aged 58, a Malaysian, was appointed to the Board
of Idaman Unggul Sdn Bhd on 17 December 1993. He
holds a Bachelor of Arts Degree in Actuarial Science and
Demography from Macquarie University, Sydney, Australia
in 1972 and is an Associate Member of the Institute of
Actuaries (London).
Dato Annuar joined the public service as an Actuarial
Officer at the Prime Ministers Department in 1973. Prior
to joining the private sector in 1984 he held the position of
Government Actuary. He was the Chief Executive Officer
of Malaysian Cooperative Insurance Society from 1984 to
1989 and held the position of the Executive Chairman of
Malaysia Nasional Insurance Berhad from 1989 to 1996. He
was the Director of various corporations such as Employees
Provident Fund, United Malayan Banking Corporation Bhd,
Island and Peninsular Bhd, Landmarks Bhd and Shangri-la
Hotel Bhd.
He currently sits on the Board of Tahan Insurance Malaysia
Berhad.
Dato Annuar is deemed to have an indirect interest in
the subsidiaries of IUB by virtue of Section 6A(4) of
the Companies Act, 1965 held through IUB. He has no
relationship with any other director and/or substantial
shareholders of IUB, has no conflict of interests with IUB
and has had no convictions for offences within the past 10
years.
Dato Ab. Halim Bin MohyiddinIndependent Non-Executive Director - Chairman of the
Nomination Committee, Remuneration Committee and
Member of the Audit Committee
Dato Ab. Halim bin Mohyiddin (Dato Halim), DPMS,
aged 60, a Malaysian, was appointed to the Board on
23 September 2003. He graduated with a Bachelor of
Economics (Accounting) from University of Malaya in
1971. Upon graduation, he joined University Kebangsaan
Malaysia as a Faculty Member of the Faculty of Economics.
In 1973 he obtained his Masters of Business Administrationfrom University of Alberta, Edmonton, Canada and in 1975
he obtained Diploma in Accountancy (post-grad) from
University of Malaya. In 1977, he joined KPMG/ KPMG
Desa Megat & Co and was made partner of the firm in 1985.He retired from the firm in 2001.
He is currently President of the Malaysian Institute of
Certified Public Accountants (MICPA) and the Chairman
of the Education and Training Committee of the Institute.
He also sits on the International Federation of Accountants
(IFAC), Education Committee. He is also a Council Member
of Malaysia Institute of Accountants (MIA) and Chairman
of its Qualifying Examination Committee.
Dato Halim is currently serving on the Board of several
private and public listed companies namely Hei Tech Padu
Berhad, Arab Malaysian Corporation Berhad, Utusan Melayu
Malaysia Berhad, Digi.Com Berhad, MCM Technologies
Berhad, KNM Group Berhad, Amway (Malaysia) Holdings
Bhd and Kumpulan Perangsang Selangor Bhd.
Dato Halim does not hold any shares in the Group and has
no relationship with any other director and/or substantial
shareholders of IUB, has no conflict of interests with IUB
and has had no convictions for offences within the past 10
years.
Datuk Che Mokhtar Bin Che AliNon-Independent, Non-Executive Director
Datuk Che Mokhtar bin Che Ali (Datuk Che Mokhtar),
aged 52, a Malaysian, was appointed to the Board on 23
September 2003. He graduated with a Bachelor of Arts
(B.A.) and Bachelor of Law (LLB) degrees from Victoria
University of Wellington, New Zealand. He was a former
Magistrate and Deputy Public Prosecutor. He has been an
Advocate and Solicitor of the High Court of Malaya since
1983. He is a Notary Public and a member of Advocates and
Solicitors Disciplinary Committee. He currently sits on theBoard of Focal Aims Holdings Berhad.
Datuk Che Mokhtar does not hold any shares in the Group
and has no relationship with any other director and/or
substantial shareholders of IUB and has had no convictions
for offences within the past 10 years.
8/14/2019 Idaman Unggul 2005 Annual Report
9/102Idaman Unggul Berhad Annual Report 2005 l 7
Profile Of Directors
Haji Hussein Bin HamzahIndependent, Non-Executive Director - Chairman of the
Audit Committee, Member of the Nomination Committee and
Remuneration Committee
Haji Hussein bin Hamzah (Tuan Hj Hussein), aged 62,
a Malaysian, was appointed to the Board on 23 September
2003. He holds Associateship in Architecture from
Western Australian Institute of Technology and Diploma in
Architecture from MARA Institute of Technology.
Tuan Hj Hussein is a Registered Architect in Board
of Architects, Malaysia and held various positions inProfessional Institutes including Pertubuhan Arkitek
Malaysia (PAM) serving as president from 1989 to 1990,
and Institut Rekabentuk Dalaman Malaysia (IPDM)
serving as president from 1992 to 1994. He has served as
a member representing PAM on the Board of Architects
(1990 to 1992), the Committee for GATT and Trade in
Services, Ministry of Finance, the consultative Panel for the
National Housing Policy and as Chairman for the Standards
Committee on use of buildings by the handicapped in the
Ministry of Housing and Local Government. He is currently
a Director of Federal Furniture Holdings (M) Berhad.
Tuan Hj Hussein does not hold any shares in the Group andhas no relationship with any other director and/or substantial
shareholders of IUB, has no conflict of interests with IUB
and has had no convictions for offences within the past 10
years.
Brig. Jen. (B) Dato Pahlawan Hj Jamil
Bin TahirIndependent, Non-Executive Director - Member of the Audit
Committee
Brig Jen (B) Dato Pahlawan Hj. Jamil bin Tahir (Dato
Jamil) aged 58, a Malaysian, was appointed to the Board
on 31 May 2004. As an Army Officer from the Engineering
Corps, he attended all the necessary professional courses.
Apart from Military Engineering, other courses include
those on Military Operations, Training, Logistics,
Management and Strategic Studies. Some of the courses are
attended overseas, namely the United Kingdom, Australia,
the United States of America, Indonesia and Bangladesh.
Throughout his 35 years career in the Army, Dato Jamil has
held various command and staff appointments ranging froman Engineer Troop Commander in 1972 up to the Chief
Engineer of the Malaysian Army in 2003 until his retirement
in 2004. Other notable appointments include those as the
Chief Secretariat of the Army Headquarters, a DirectingStaff at the Malaysian Armed Forces Staff College and as
Director of Defence Mapping at the Department of Survey
and Mapping, Malaysia.
Dato Jamil does not hold any shares in the Group and has
no relationship with any other director and/or substantial
shareholders of IUB, has no conflict of interest with IUB and
has no convictions for offences within the past 10 years.
Dr. Radzuan Bin Abdul RahmanIndependent, Non-Executive Director - Member of the
Audit Committee, Nomination Committee and Remuneration
Committee
Dr. Radzuan bin Abdul Rahman (Dr Radzuan) aged 63,
a Malaysian was appointed to the Board on 28 December
2004. He is the Chairman of Kenangan Cergas (M) Sdn.
Bhd., a wholly owned subsidiary of Idris Hydraulic
(Malaysia) Bhd.
He graduated with Bachelor in Agricultural Science,
University Malaya and later pursued his Masters in Science
and Doctorate in Resource Economics at Cornell University,New York. His early calling was to teach, a passion that
has remained with him until today. A devoted academician,
Dr Radzuan was the Dean at the Faculty of Resource
Economics and Agribusiness, University Putra Malaysia
until March 1980.
Dr Radzuan first expanded his horizon to Sime Darby
Plantations and in 1984, he joined Golden Hope Plantations
Berhad as a director of corporate planning and worked his
way up to be Group Director of the Plantation Division. The
16 fruitful years spent at Golden Hope Plantations served
as a nursery that had nurtured and articulated his corporate,management and business acumen.
In addition to being the Council Member at the Kuala
Lumpur University and Malaysian Agricultural Research
and Development Institute (MARDI), Dr Radzuan currently
sits on the Board of Fraser & Neave Holding Berhad,
Tradewinds (M) Berhad, Inch Kenneth Kajang Rubber
Plc, Kuwait Finance House (Malaysia) Bhd, F&N Diaries
Sdn Bhd, Premier Milk Malaya, UNIKL Sdn Bhd and
Marditech Sdn Bhd. He is currently the Managing Director
of Tradewinds Plantation Bhd.
Dr Radzuan does not hold any shares in the Group and hasno relationship with any other director and/or substantial
shareholders of IUB, has no conflict of interests with IUB
and has had no convictions for offences within the past 10
years.
8/14/2019 Idaman Unggul 2005 Annual Report
10/102Idaman Unggul Berhad Annual Report 2005 l 8
Statement Of Corporate Governance
INTRODUCTION
The Malaysian Code of Corporate Governance (theCode) introduced in March 2000, sets out principles andbest practices on structures and processes that corporationsmay use in their operations towards achieving the optimalgovernance framework. The principles and best practicesof the Code were incorporated into the revamped ListingRequirements of Bursa Malaysia Securities Berhad(Bursa Malaysia) and listed companies are required todisclose the extent of compliance or provide alternative
measures in areas where there are deviations from theprinciples and/or best practices.
The Board of Directors (the Board) remain unreservedlycommitted in applying and ensuring that the higheststandards of Corporate Governance as set out in the Codeare well observed and practised throughout the Group inupholding its fundamental duty to safeguard the interestsof all stakeholders and to enhance stakeholders value.Thus, will continuously evaluate the Groups CorporateGovernance practices and procedures and whereappropriate will adopt and implement the best practicesas enshrined in the Code, in accordance with Paragraph
15.26 of the Bursa Malaysia Listing Requirement.
The Board is hereby pleased to report herein the manner inwhich the Company has applied the principles containedin the Code and the extent of compliance with the bestpractices of the Code as required under the ListingRequirement of Bursa Malaysia for the financial yearended 31 December 2005 in an effort to observe highstandards of transparency, accountability and integrity.
BOARD OF DIRECTORS
The Board
The Board is controlled and led by an effective Boardwhich has overall responsibility in corporate governance,financial performance, establishing goals and strategicdirection, overseeing the investments and attainments ofthe corporate plans and objectives of the Company.
Specific responsibilities have been assigned to three (3)sub-committees namely Audit Committee, NominationCommittee and Remuneration Committee. TheseCommittees have the authority to examine particular issuesand report back to the Board with their recommendations,whereby the ultimate responsibility for the final decisionon all matters lies with the entire Board.
Composition of the Board
As at the date of this report, the Board comprises of thefollowing :-
Directorship Percentage
Executive Director (also the Executive Chairman) 1/6 (16.7%)
Independent, Non-Executive Director 4/6 (66.7%)
Non-Independent, Non-Executive Director 1/6 (16.6%)
This is in compliance with Paragraph 15.02 of the Bursa
Malaysia Listing Requirement that requires at least two(2) Directors or one-third of the Board members compriseof Independent Directors to fairly reflect the interest ofthe minority shareholders. The profile of each director ispresented on pages 6 to 7 of the Annual Report.
The Board of Directors is entrusted with the responsibilityto exercise reasonable and proper care of the Companysresources for the best interests of its shareholders and tosafeguard the Companys assets. Members of the Boardhave been selected based on their character, caliber,extensive experience and expertise in a wide range of bothrelated and unrelated industries, as well as their ability toadd strength to the stewardship of the Company. Thus,collectively bring together a wide range of experienceand expertise in areas such as finance, legal, corporateaffairs and operations.
The Independent Directors play crucial role by providingindependence and broader views to the management toensure balance of power and authority amongst the Board.The presence of the Independent Director is essential inproviding unbiased and independent views, advice andjudgement as well as safeguarding the interests of otherparties such as minority shareholders of the Company.
The concept of independence adopted by the Board isin accordance with the definition of an IndependentDirector in Paragraph 1.01 of the Bursa Malaysia ListingRequirement.
The Executive Chairman has overall responsibilityfor the Groups business operations, organizationaleffectiveness and the implementation of the Boardpolicies and decisions. Nevertheless, the ultimateresponsibility for the final decision on all matters lies withthe Board of Directors. According to Best Practices ofCorporate Governance, the roles of Chairman and Chief
Executive Officer should be distinct and segregated toensure a balance of power and authority, such that no oneindividual can dominate the boards decision. The Boardis aware of the dual role held by Dato Annuar Senawi
8/14/2019 Idaman Unggul 2005 Annual Report
11/102Idaman Unggul Berhad Annual Report 2005 l 9
Statement Of Corporate Governance
(Dato Annuar) who is also the Executive Chairman.His success in improving the performance of the Groupenables him to continue his legacy as the major playerin maintaining the survival and growth of the Group asa whole.
Dato Ab. Halim bin Mohyiddin has been identified asthe Senior Independent, Non-Executive Director of theBoard to whom concerns of shareholders, Managementand investors may be conveyed.
Directorships in Other Companies
Each of the Directors of Idaman Unggul Berhad meet therequirements of Paragraph 15.06 of the Bursa MalaysiaListing Requirement which restricts the number ofdirectorship of not more than ten (10) in any publiclisted companies and not more than fifteen (15) in othercompanies (other than listed companies). This ensures theDirectors commitment, resources and time are focusedfor effective input to the Board. The directorships of eachdirector are set out in the Profile of Directors on pages 6to 7 of the Annual Report.
Board Meetings
Board meetings are scheduled at least four (4) timesa year and additional meetings are held as and whenrequired. The Board will meet to discuss and reviewthe financial performance of the Group and to adopt thequarterly financial reports. A total of seven (7) Board ofDirectors Meetings were held during the financial yearended 31 December 2005 and the details of attendance ofeach Director are set out as follows :
Name of Director Number of
meetingsattended
Dato Che Mohd Annuar bin Che Mohd Senawi
(Executive Chairman)7/7
Dato Ab. Halim bin Mohyiddin
(Independent, Non-Executive Director)6/7
Datuk Che Mokhtar bin Che Ali
(Non-Independent, Non-Executive Director)5/7
Tuan Haji Hussein bin Hamzah
(Independent, Non-Executive Director)7/7
Brig. Jen. (B) Dato Pahlawan Hj Jamil bin
Tahir
(Independent, Non-Executive Director)
6/7
Dr Radzuan bin Abdul Rahman
(Independent, Non-Executive Director)6/7
All the Directors have complied with the minimum 50%attendance requirement at Board Meetings during thefinancial period as stipulated by the Listing Requirementof Bursa Malaysia.
Supply of Information
The Board has unrestricted access to timely and accurateinformation on various aspects concerning the Company.Prior to the date of the scheduled meetings, the agenda
for every Board Meeting together with comprehensivemanagement reports, proposal papers and supportingdocuments are furnished to the Directors for their perusalwell in advance of the Board meeting date, so thatthe Directors have ample time to review matters to bedeliberated and to facilitate informed decision makingby the Directors. Minutes of every Board meetingare circulated to all Directors for their perusal prior toconfirmation of the minutes at the following Boardmeeting.
As and when necessary, the Directors, in furtherance oftheir duties may seek independent professional advice at
the expense of the Company. All Directors have full accessto the senior management and the advice and services ofthe Company Secretary who ensures that all appointmentare properly made and that all necessary information isobtained from the Directors, both for the Companysown records or for the purposes of meeting statutoryobligations, as well as obligations arising from the ListingRequirement or other regulatory requirements.
Appointment of Directors
The Code endorses as a good practice, a formal procedure
for appointments of Directors, with a NominationCommittee making recommendations to the Board.The Nomination Committee currently comprises thefollowing members :
(a) Dato Ab. Halim bin Mohyiddin(Chairman/Independent, Non-Executive Director);
(b) Tuan Haji Hussein bin Hamzah(Independent, Non-Executive Director); and
(c) Dr. Radzuan bin Abdul Rahman(Independent, Non-Executive Director).
The committee is primarily empowered to recommend tothe Board, new candidates as Board members or Boardcommittee members to ensure mix of skills and experienceand other qualities including core competencies whichthe Non-Executive Directors should bring to the Board.
8/14/2019 Idaman Unggul 2005 Annual Report
12/102Idaman Unggul Berhad Annual Report 2005 l 10
Statement Of Corporate Governance
In addition to recommending candidates to the Board,the Nomination Committee also assesses and reviews theeffectiveness of the Board as a whole and contribution ofeach individual Director.
Re-election of Directors
Paragraph 7.28 of the Bursa Malaysia Listing Requirementrequires all Directors to submit for re-election once atleast in each three (3) years. In accordance with theCompanys Articles of Association, one-third of the
Directors shall retire at each Annual General Meetingand the retiring directors are eligible for re-election.Any Directors appointed during the year are subject toretirement and re-election at the next Annual GeneralMeeting.
Directors over seventy (70) years of age are requiredto submit themselves for re-appointment annually inaccordance with Section 129(6) of the Companies Act,1965. However, the Board has decided not to re-elect anyDirectors above 70 years of age.The retiring Directors who are standing for re-election in
accordance to Article 97 of the Articles of Association atthe forthcoming Annual General Meeting are as follows :-
Dato Ab. Halim bin Mohyiddin (Independent, Non-Executive Director); and
Datuk Che Mokhtar bin Che Ali (Non-Independent,Non-Executive Director)
DIRECTORS TRAINING
As at the date of this Statement, all Directors have attended
the Mandatory Accreditation Program (MAP) andContinuing Education Programme (CEP) conducted byvarious course leaders such as Rating Agency MalaysiaBerhad, Research Institute of Investment AnalystsMalaysia, BDO Governance Advisory, and Busatra SdnBhd (an affiliate Company of Bursa Malaysia).
The Board recognizes the importance of training to aidthem in discharging their duties to the Company. As such,the Directors will continue to attend training programmesand seminars from time to time to keep abreast of relevantdevelopment and current regulatory issues despite therepeal of Practice Note 15/2003 (PN 15/2003) of theBursa Malaysia Listing Requirement with effect from 1January 2005, whereby the Directors are not obligated toattend the CEP as prescribed under PN 15/2003.
Details of training attended by each Director are set outas below :-
Name of
Director
Training(s) Attended
Dato Che
Mohd
Annuar bin
Che Mohd
Senawi
(a) Succession Planning & Talent
Pool Development on 9 June
2005.
Dato Ab. Halim
bin Mohyiddin
(a) MICPA Business Forum 2005
on 5-6 September 2005.Datuk Che
Mokhtar bin Che
Ali
(a)
(b)
Going for Listing on 17-18
May 2005; and
Succession Planning & Talent
Pool Development on 9 June
2005.
Tuan Hj Hussein
bin Hamzah
(a) The Audit Committee on 15
June 2005.
Brig. Jen.
(B) Dato
Pahlawan
Hj Jamil bin
Tahir
(a)
(b)
The Audit Committee on 14
September 2005; and
Understanding and Making
Effective Use of Consolidated
Financial statements on 18November 2005.
Dr Radzuan bin
Abdul Rahman
(a) National Integrity Plan-
Reinventing the Future
Through Good Governance on
8-9 August 2005.
Directors Remuneration
The Remuneration Committee currently comprises thefollowing members :
(a) Dato Ab. Halim bin Mohyiddin(Chairman/Independent, Non-Executive Director);
(b) Dato Che Mohd Annuar bin Che Mohd Senawi(Executive Director);
(c) Tuan Haji Hussein bin Hamzah(Independent, Non-Executive Director); and
(d) Dr. Radzuan bin Abdul Rahman(Independent, Non-Executive Director).
The remuneration packages for the Directors aredeliberated by the Remuneration Committee, whichensures that the Directors are well rewarded in accordance
with their contribution and performance of the Company,hence motivating and retaining the best candidate torun the Company successfully. Remuneration packages
8/14/2019 Idaman Unggul 2005 Annual Report
13/102Idaman Unggul Berhad Annual Report 2005 l 11
Statement Of Corporate Governance
of Executive Directors are structured to commensuratewith corporate and individuals performance, seniority,experience and scope of responsibility and is benchmarkedto market/industry standards. The Non-ExecutiveDirectors are remunerated based on fixed annual feesapproved by the shareholders of the Company. Theremuneration packages of the Directors are decidedby the Board as whole, with the Director concernedabstaining from participating on decisions in respect ofhis individual remuneration.
Details on the remuneration of the Directors are asfollows :
Basic
Salary/
Fees
RM000
Other
Benefits
RM000
Total
2005
RM000
Total
2004
RM000
Executive Director
Dato Che Mohd
Annuar bin Che
Mohd Senawi
540 249 789 756
Dato Dr. Abdul
Razak bin Abdul(resigned on
31.8.2004)
- - - 844
540 249 789 1600
Non-Executive
Directors
Dato Ab. Halim bin
Mohyiddin12 16 28 27
Datuk Che Mokhtar
bin Che Ali12 1 13 14
Tuan Haji Hussein
bin Hamzah12 40 52 50
Brig. Jen. (B) Dato
Pahlawan Hj Jamil
bin Tahir
12 15 27 12
Dr Radzuan bin
Abdul Rahman12 14 26 -
Mohd Mahyudin bin
Zainal (resigned on
31.8.2004)
- - - 33
60 86 146 136
Grand Total 600 335 935 1736
INVESTORS RELATION AND SHAREHOLDERSCOMMUNICATION
The Board recognises the importance of establishinga direct line of communication with shareholders andinvestors through timely dissemination of information ofthe Groups performance. Dissemination of informationincludes the distribution of Annual Report and relevantcircular to shareholders, issuance of press releases,announcement of quarterly financial results to providethe shareholders and the general public with an overview
of the Groups business activities and performance of theCompany to Bursa Malaysia and the public as well asholding press conference.
The Annual General Meeting is a crucial mechanismin shareholders communication with the opportunity togain first-hand exposure on the Companys operationsand performance. It provides an opportunity fordirect interaction with shareholders where questionsand concerns raised on the operational and financialperformance are addressed and are served as a feedbackto be factored into the Companys business or corporate
decisions. Thus, by having a better understanding of theCompanys activities, the shareholders will have a greatersense of belonging to the Company. Such two-waycommunication increases corporate transparency andhelps shareholders take a longer view of their investmenton the back of a better understanding of the Companyscorporate strategy and operations.
Shareholders and members of the public are invited toaccess the Bursa Malaysia website at www.bursamalaysia.com to obtain the latest corporate and market informationof the Company and the Group.
ACCOUNTABILITY AND AUDIT
Financial Reporting
The Board aims to provide and present a balancedand meaningful assessment of the Groups financialperformance and prospects at the end of the financialyear, primarily through the annual financial statements,quarterly and half yearly announcement of results toshareholders as well as the Chairmans statement andreview of operations in the annual report.
The Audit Committee assists by scrutinizing theinformation to be disclosed, to ensure accuracy andadequacy by overseeing the Groups financial reportingprocesses and the quality of its financial reporting.
8/14/2019 Idaman Unggul 2005 Annual Report
14/102Idaman Unggul Berhad Annual Report 2005 l 12
Statement of Directors Responsibility in Respect ofthe Preparation of the Audited Financial Statements
Pursuant to Paragraph 15.27(a) of the Bursa MalaysiaListing Requirement, all the Directors are collectivelyresponsible in ensuring that the financial statements aredrawn up in accordance with the approved accountingstandards adopted by the Malaysian Accounting StandardsBoard (MASB), the provisions of the Companies Act1965 and the Bursa Malaysia Listing Requirement.
In preparing those financial statements, the Directors arerequired to :-
Ensure that the financial statements give a true andfair view of the state of affairs of the Group and ofthe Company as at the end of the accounting periodand of their profit and loss and cash flows for theperiod then ended;
Ensure that applicable approved accounting standardsin Malaysia and the provisions of the CompaniesAct, 1965 have been applied;
Select and applied consistently suitable accountingpolicies and made reasonable and prudent judgments
and estimates; and The Directors also have a general responsibility
for taking steps as are reasonably open to them tosafeguard the assets of the Group and to prevent anddetect fraud and other irregularities.
Internal Control
The Board acknowledges that it is responsible formaintaining a sound system of internal controls, whichprovides reasonable assessment of effective operations,internal financial controls and compliance with laws
and regulations as well as with internal procedures andguidelines. Information on the Groups internal control ispreserved in the Statement on Internal Control laid out onthe accompanying section.
Relationship with Auditors
Through the Audit Committee, the Company hasestablished a transparent professional relationship withthe Groups external auditors. The Audit Committeerecommends the appointment of the external auditorsand their remuneration. The appointment of the externalauditors is subject to the approval of the shareholdersin the general meeting whilst their remuneration isdetermined by the Board.
CONCLUSION
The Board believes that the development of the systemof internal control is an ongoing process and continuousto take steps to improve the internal control system.During the year under review, no material weaknesseshave been identified which would result in any materiallosses, contingencies or uncertainties that would requiredisclosure in the Groups Annual Report.
Statement Of Corporate Governance
8/14/2019 Idaman Unggul 2005 Annual Report
15/102Idaman Unggul Berhad Annual Report 2005 l 13
Statement Of Internal Control
Paragraph 15.27(b) of the Bursa Malaysia Listing
Requirement requires all the Directors of listed
companies to include a statement in the Annual Report
on the state of the Companys internal control. The
Code of Corporate Governance amongst other requires
the Board to identify the Groups critical business
risks and implement a system to manage these risks
as well as to review the adequacy and the integrity
of the Companys internal control system. The Board
of Directors of Idaman Unggul Berhad is pleased to
provide the following statement on the state of internalcontrol of the Group for the financial year ended 31
December 2005.
Responsibility
The Board affirms and acknowledges its overall
responsibility for the Groups internal control
system in instituting a system of internal controls
that covers all aspects of the business including
strategic, commercial, operational and financial areas.
It recognises that reviewing the Groups system ofinternal control is a concerted and continuing process,
designed to manage rather than eliminate the risk of
failure to achieve business objectives. Thus, the Board
is pleased to provide the following statement on the
state of internal control of the Group. For the purposes
of this statement, the Group refers to the Company and
its subsidiaries, excluding its associated companies.
Internal Control System
The Board confirms that there is a continuous processfor identifying, evaluating and managing the significant
risks faced by the Group, which has been in place
for the financial year under review and up to date of
approval of the annual report and financial statements.
The process is regularly reviewed by the Board and is
in accordance with the guidance as contained in the
publication - Statement of Internal Control : Guidance
for Directors of Public Listed Companies.
The key elements of the internal control structure
and assurance processes, inter alia, encompass thefollowing:-
The Group is headed by the Executive Chairman
and assisted by the management team. There is
an operating structure in place, with clear defined
lines of accountability.
The Audit Committee was established to assist the
Board in discharging its duties.
Periodical Board and Audit Committee meetings
are held. Quarterly financial results and status of
corporate proposals are presented during these
meetings.
Regular Management Meetings are conductedto obtain feedback on the progress of activities
undertaken in order to rectify any shortcomings or
problems affecting the implementation plan.
The Group has engaged an internal auditor, which
will report directly to the Audit Committee.
The internal auditor has the objective to carry
out reviews of the internal control systems to
determine if accepted accounting and control
procedures have been complied with as well as
to identify recommendations to strengthen the
overall internal control environment. The Board of the active subsidiaries, particularly
the insurance subsidiary, receives and reviews
regular reports from the management on key
operating statistics, legal, environmental and
regulatory matters. The Head of the respective
subsidiary reports regularly to Management and
occasionally to the Board.
Each active business unit submits a Business
Plan annually for approval by the Board of the
respective subsidiaries. The results of each line
of business are reported monthly and variancesagainst budgets are analyzed.
At its core insurance subsidiary, regular meetings
are held by its Board, Investment Committee,
Management Committee and Audit Committee
to review the performances and internal controls.
The Internal Audit function also assists the Audit
Committee in discharging their duties. During
the financial year, 64 Internal Audit Reports
were tabled to the Audit Committee. The Board
and Management of the insurance subsidiary
are continuously evaluating the effectivenessof its Credit Control Department to enhance the
monitoring of its receivables.
8/14/2019 Idaman Unggul 2005 Annual Report
16/102Idaman Unggul Berhad Annual Report 2005 l 14
In addition, there is a Risk Management Committee
comprising of three (3) Independent Non-Executive
Directors to review and recommend risk management
strategies, policies and risk tolerance limits for the
Boards approval.
STATEMENT OF COMPLIANCE WITH THE
BEST PRACTICES OF THE CODE
The Company is committed to achieving high standardsof corporate governance throughout the Group and to
Statement Of Internal Control
the highest level on integrity and ethical standards in
all its business dealings. The Board considers that it
has complied throughout the financial year with the
Best Practices as set out in the Code.
Statements made in accordance with the resolution of
the Board of Directors dated 20 July 2006
Dato Che Mohd Annuar bin Che Mohd Senawi
Executive Chairman
8/14/2019 Idaman Unggul 2005 Annual Report
17/102Idaman Unggul Berhad Annual Report 2005 l 15
Report On Audit Committee
The Board of Directors is pleased to present the Report
of the Audit Committee for the financial year ended 31
December 2005.
Composition of the Audit Committee
(a) Tuan Haji Hussein bin Hamzah
(Chairman/Independent, Non-Executive Director);
(b) Dato Ab. Halim bin Mohyiddin
(Independent, Non-Executive Director);
(c) Brig. Jen (B) Dato Pahlawan Hj Jamil bin Tahir
(Independent, Non-Executive Director); and
(d) Dr. Radzuan bin Abdul Rahman
(Independent, Non-Executive Director).
TERMS OF REFERENCES
Members
An independent Audit Committee shall exist to
implement and support the functions of the Board.
Members of the Committee shall elect the Chairman,
and all members of the Committee including theChairman shall hold office as long as they serve as
Directors of the Company.
Based on Part-C Audit Committee of the Listing
Requirement, the Committee shall be appointed from
amongst the Directors and no alternate Director shall
be a member of the Committee.
Composition
The Audit Committee shall be appointed by the Boardfrom its members fulfilling the following requirements :-
(a) The Committee shall comprise at least three (3)
members, majority of whom shall be Independent
Directors, and the Chairman of the Committee
shall be appointed by the Board from among the
Independent Non-Executive Directors;
(b) At least one member of the Committee shall be :-
A member of the Malaysia Institute of
Accountants (MIA) ;
If he/she is not a member of the MIA,
must have had at least three years workingexperience; and
He/she must have passed the examinations
specified in Part I of the First Schedule of the
Accountants Act, 1967; or
He/she must be a member of one of the
associations of accountants specified in Part II
of the First Schedule of the Accountants Act,
1967.
Members of the Committee may relinquish their
membership with prior written notice to the Company
Secretary and may continue to serve as Director
of the Company. In the event of any vacancy in the
Committee, the vacancy shall be filled within three (3)
months and the Nomination Committee shall review
and recommend for the Boards approval another
appropriate Director to fill the vacancy.
Objectives
In compliance with the Listing Requirement and Best
Practices recommended by the Finance Committee on
Corporate Governance stipulated in the Malaysia Code
on Corporate Governance, it is the objective of theCommittee to assure the shareholders of the Company
that the Directors have complied with specified
financial standards and required disclosure policies
developed and administered by the Bursa Malaysia
and other approved accounting standard bodies.
Further, the Committee shall ensure consistency with
Bursa Malaysias commitments to encourage high
standards of corporate disclosure and transparency.
The Committee also endeavours to adopt practices
aimed at maintaining appropriate standards of
corporate responsibility, integrity and accountabilityto the Company s shareholders.
Frequency of Meetings
The Committee meets at least four (4) times annually,
or more frequently as circumstances dictate. As part
of its duty to foster open communication, the Senior
Vice President, Group Chief Accountant and a
representative of the external auditors will normally
attend the meetings. Other Board members may attend
the meetings upon invitation of the Committee.
8/14/2019 Idaman Unggul 2005 Annual Report
18/102Idaman Unggul Berhad Annual Report 2005 l 16
Report On Audit Committee
Attendance of Meetings
The quorum for all meetings of the Committee shall
be not less than two (2) members, a majority of
whom shall be Independent Directors. Apart from
the members of the Committee who will be present
at the meetings, the Committee may request any
member of the Management and representatives of the
external/internal auditors to be present at meetings of
the Committee. The Company Secretary shall be the
Secretary of the Committee.
Five (5) Audit Committee meetings were held in the
financial year ended 31 December 2005 and details of
attendance of the Committee Members are as follows :-
Name of Director
Number of
meetings
attended
Percentage of
attendance
(%)
Tuan Haji Hussein bin Hamzah
(Independent,
Non-Executive Director)
5/5 100%
Dato Ab. Halim bin Mohyiddin(Independent,
Non-Executive Director)
5/5 100%
Brig. Jen. (B) Dato Pahlawan
Hj Jamil bin Tahir
(Independent,
Non-Executive Director)
5/5 100%
Dr Radzuan bin Abdul Rahman
(Independent,
Non-Executive Director)
5/5 100%
Duties and Responsibilities
The principal duties and responsibilities of the
Committee have been expanded to include the matters
specified in the Code of Corporate Governance:-
(a) To consider the appointment of a suitable
accounting firm to act as the external auditors.
Amongst the factors considered for the appointment
are the adequacy of experience and resources of
the firm, the individuals assigned to the audits and
the recommended audit fees payable;
(b) To discuss the nature and scope of audit with the
external auditors (before the audit commences)
and ensure coordination (where more than one
audit firm is involved);
(c) To review the quarterly interim results and annual
financial statements focusing particularly on :
Any changes in accounting policies and
practices.
Significant adjustments arising from the
external audits.
The ongoing concern assumptions.
Compliance with accounting standards and
other legal requirements.
(d) To discuss issues and concerns arising from
interim and final audits and any other matters
external auditors wish to discuss, in the absence
of management if necessary;
(e) To review the external auditors management letter
and managements responses;
(f) To review assistance and cooperation given by
the Company, its business units and its officers to
auditors;
(g) To review and ensure the Company s internal audit
function is adequately resourced, has appropriate
standing within the Company and has adequate
standards of internal controls, reporting and
processes;(h) To consider the major findings of internal audits
and investigations, managements responses,
remedial actions taken and follow-ups;
(i) To review and consider any related party
transactions and conflict of interest situation that
may arise within the Company or the business
units; and
(j) To consider and examine any other matters/topics
as defined by the Board.
Authority
In conducting its duties and responsibilities, the
Committee shall have the following rights :
To explicit authority to investigate any matter
within its terms of reference;
To obtain independent legal or other professional
advice if considers necessary;
To secure full, free and unrestricted access to any
information, records, properties and personnel of
the Company and of any other companies within
the Company; To communicate directly with the external and
internal auditors;
8/14/2019 Idaman Unggul 2005 Annual Report
19/102Idaman Unggul Berhad Annual Report 2005 l 17
Report On Audit Committee
To be able to obtain external independent
professional advice and to invite external parties
with relevant experience to attend the Committee
meetings;
To have the discretion to invite other Directors
and/or employees of the Company to attend any
particular Committee meeting to discuss specific
issues; and
To be able to convene meetings with external and
internal auditors, excluding the attendance of the
executive members of the Committee if deemed
necessary.
Reporting Procedures
Minutes of the meetings shall be distributed to each
member of the Committee. In addition to performing
its principal duties and responsibilities and discussing
matters at the Committee meetings, the Committee shall
perform or has performed the following functions :
To review and approve quarterly reports;
To review and approve press releases toshareholders, investors and regulatory
authorities;
To review and approve the annual and revised
audit plans;
To review and discuss risk analysis of the
Companies and the business units of the Group;
and
Attend seminars, trainings and conferences
relating to Corporate Governance, Bursa Malaysia
Listing Requirement and other relevant subjects.
INTERNAL AUDIT FUNCTION
The Audit Committee of the Company is supported
by an internal auditor and Audit Committee of its
core insurance subsidiary. The Committee is aware of
the fact that an independent and adequately resource
internal audit function is essential to assist the
assurance it requires regarding the effectiveness of the
system of internal control.
The main role of the internal audit function is to review
the effectiveness of the system of internal control andthis is performed with impartiality, proficiency and
due professional care.
During the financial year, the core insurance
subsidiary s internal audit activities have been carried
out according to the internal audit plan which, have
been approved by its Audit Committee.
8/14/2019 Idaman Unggul 2005 Annual Report
20/102Idaman Unggul Berhad Annual Report 2005 l 18
Additional Compliance Information
STATUS OF UTILIZATION OF PROCEEDS RAISED
FROM CORPORATE EXERCISE
Pursuant to the Restructuring Exercise, the total proceedsarising from the Shares Subscription, Rights Share Issue andRights Issue of ICULS-B amounting to RM213.073 millionhave been utilized as follows:
Approved
Utilization
RM000
Utilized as at
31.12.2005
RM000
Repayment to SchemeCreditors
188,394 188,394
Repayment to bank
borrowings
139 139
Defray expenses of the
Restructuring Exercise
8,000 6,794
Working capital 16,540 16,540213,073 211,867
SANCTIONS AND/OR PENALTIES IMPOSED
There were no sanctions and/or penalties imposed on the
Company and its subsidiaries, directors or management bythe relevant regulatory authorities.
SHARE BUYBACKS
During the financial year, there were no share buybacks ofthe Companys own shares.
AMERICAN DEPOSITORY RECEIPTS (ADR) AND
GLOBAL DEPOSITORY RECEIPTS (GDR)
During the financial year, the Company did not sponsor any
ADR or GDR program.
OPTIONS, WARRANTS OR CONVERTIBLE SECURITIES
As of 31 December 2005, a total of 15,315,000 out of16,318,075 Irredeemable Convertible Unsecured LoanStocks-A (ICULS-A) have been converted into ordinaryshares since the beginning of the financial year.
There was no conversion of Irredeemable ConvertibleUnsecured Loan Stocks-B (ICULS-B) into ordinary sharesin respect of the financial year.
NON-AUDIT FEES
The amount of non-audit fees paid to the external auditorsby the Group and by the Company for the financial year isdisclosed in Note 5 to the financial statements.
UNAUDITED RESULTS, PROFIT ESTIMATE,
FORECAST OR PROJECTIONS
UNAUDITED RESULTS
The audited results for the financial year ended 31 December2005 differ by more than 10% from the unaudited resultspreviously announced on 28 February 2006 as follows:
Group
Unaudited
Results
31.12.2005Group
RM000
Audited
Results
31.12.2005Group
RM000
Difference
RM000
Loss after tax and
minority interest
(13,427) (25,399) (11,972)
The deviation was mainly due to the following :
(a) Increase in net claims incurred as a
result of revision of claims estimates. (6,480)(b) Increase in provision for bad and
doubtful debts for balances above 6
months arising from verification with
re-insurers, brokers, co-insurers and
agents.
(3,437)(c) Impairment of land and buildings in
insurance subsidiary following approval
of revaluation by the authority.
(2,571)(d) Others 516
Total Deviation (11,972)
PROFIT ESTIMATE, FORECAST OR PROJECTION
No profit estimate, forecast or projection were announcedduring the financial year.
PROFIT GUARANTEE
During the financial year, there were no profit guaranteesgiven by the Company.
MATERIAL CONTRACTS
There was no material contracts entered into between theCompany and the Directors of the Company during thefinancial year.
8/14/2019 Idaman Unggul 2005 Annual Report
21/102Idaman Unggul Berhad Annual Report 2005 l 19
Chairmans Statement
Dear Shareholders,
On behalf of the Board of Directors, I would like to present the third Annual Report and Audited Financial
Statements of the Group and the Company (or IUB) for the financial year ended 31 December 2005.
Industry Trend and Development
The insurance industry continued to register positive growth of 6.9% in 2005 (2004: 17.2%) with a combined
premium income for life and general insurance business of RM23.56 billion (2004: RM 22.04 billion).
The general insurance industry registered a net premium growth of 9.3% to RM7.55 billion (2004: 7.3% toRM6.91 billion) propelled by strong private consumption. Growth in the life insurance industry moderated in
2005 with an increase of 5.8% to RM16.01 billion in premium income (2004: 22.3% to RM15.13 billion) after
two consecutive years of exceptional growth.
Although there was positive growth in premium the combined premium income of the insurance industry declined
marginally relative to the GNP from 5.2% to 5.0%. Total insurance assets recorded 11.4% in growth, increasing
to RM96.74 billion (2004: 13.1% to RM86.85 billion). This represented 5.1% of the total assets of the financial
system (2004: 4.9%).
Summary of Results
For the year ended 31 December 2005, the Group recorded a loss of RM25.40 million on a revenue base of
RM117.54 million compared to a profit of RM0.47 million on the back of the revenue of RM141.68 million in
the previous year.
The loss for the year was mainly attributed to its insurance subsidiary which reported a loss of RM20.21 million
compared to a profit of RM1.77 million in the previous year.
Notable Events
The main notable events during the period under review were as follows:
On 18 November 2005, the Company announced that its insurance subsidiary, Tahan Insurance Malaysia
Berhad (Tahan), entered into a business transfer agreement (BTA) with Affin Holdings Berhad
(AHB) and National Mutual International Pty Ltd ((NMI), a wholly-owned subsidiary of Axa Asia
Pacific Holdings Ltd) for the proposed disposal of its life insurance business for a total cash consideration
of RM121.0 million to a company to be incorporated by AHB and NMI.
On 30 June 2006, the disposal of the life insurance business (Life Business) was completed upon
approval of the vesting order by the High Court of Malaya in Kuala Lumpur, for the transfer of the assets
and liabilities of Life Business to Axa Affin Life Insurance Berhad.
8/14/2019 Idaman Unggul 2005 Annual Report
22/102Idaman Unggul Berhad Annual Report 2005 l 20
Chairmans Statement
As disclosed in note 12 to the financial statements, with the completion of the disposal of the Life
Business and the receipt of proceeds from the disposal of Life Business of RM121.0 million on 4 July
2006, the shortfall in the general business margin of solvency as at 31 December 2005 has been reduced
to approximately RM54.21 million. Appropriate action plans are being formulated to dispose the non-
admitted corporate bonds of the general business amounting to RM87.13 million before the end of the
year in order to rectify the margin of solvency position.
The disposal of the Life Business resulted in a gain on disposal of approximately, RM86 million which will
correspondingly improved the Groups shareholders equity as at 31 December 2005 to RM116 million on
a pro-forma basis compared to RM30 million prior to completion of the disposal of the Life Business.
Insurance
The general insurance business recorded a 148.4% increase in underwriting surplus before management expenses
of RM17.29 million compared to RM6.96 million in the previous year. Net premium however registered a drop to
RM104.24 million (2004 : RM127.81 million). It must be noted that there was a significant improvement in claims
ratio to 75.1% (2004: 87.7%), lower management expenses of RM40.99 million (2004: RM41.66 million) and
3.9% improvement in net other operating expenses to RM8.70 million (2004: RM9.05 million). Notwithstanding
this the general insurance business reported a net deficit for the year 2005 of RM19.77 million compared to a
net deficit of RM5.54 million in the previous year. The 2004 results had been influenced substantially from the
improved credit control performance that managed to recover RM24.10 million a one off recovery in the doubtful
debts provision compared to a smaller recovery of RM0.299 million in 2005.
The life insurance business registered a decrease of 8.1% in net premium to RM27.04 million from RM29.44
million in the previous year. Total net deficit remained almost flat at RM9.85 million (2004: RM9.79 million).
Life policyholders fund as at 31 December 2005 stood at RM162.07 million compared to RM171.92 million
in the previous year while the total life business assets decreased by 4.3% to RM217.33 million compared to
RM227.12 million in the previous year.
Outlook
The insurance industry is expected to remain competitive in 2006 with the challenging economic prospectsdomestically and globally. Tahan will continue to focus its strategies on improving its performance through the
effective use of marketing and distribution resources, the knowledge and skills of the workforce and information
technology infrastructure.
In order to focus on Tahans core competency and strength, Tahan had divested its life insurance business and
the proceeds of RM121.0 million from the disposal of Life Business has been injected into the general insurance
business to grow and strengthen its general insurance activities.
Barring unforeseen circumstances, the Group expects to improve its results in the current financial year and will
continue to focus on improving the performance of its core insurance business.
8/14/2019 Idaman Unggul 2005 Annual Report
23/102Idaman Unggul Berhad Annual Report 2005 l 21
Chairmans Statement
Redeemable Secured Loan Stocks
As part of the restructuring exercise of IHMB in 2003 which IUB participated, a special purpose vehicle company,
Lambang Pertama Sdn Bhd (LPSB), was incorporated with a specific purpose to redeem the Redeemable
Secured Loan Stocks (RSLS) amounting to RM233.989 million issued by LPSB to the scheme creditors on 20
November 2003. The RSLS has a nominal value of RM1 each with zero coupon and is not listed, not transferable
with a maturity date of two (2) years from the date of issue. On 9 December 2005, approval was granted by the
Securities Commission (SC) for LPSB to extend the maturity date of its existing RSLS for another two (2) years
to expire in November 2007 (Extension Period) and the RSLS now bear a coupon of 4% per annum from year
three (3) onwards until redemption date.
As at 31 December 2005, the RSLS principal outstanding amounted to RM213.989 million. Subsequent to the
financial year 2005, LPSB has redeemed RM2.485 million of the RSLS principal following the completion of the
disposal of Advanced Electronics (M) Sdn Bhd on 12 July 2006.
On 30 July 2004, LPSBs subsidiary, Klinker Investments Ltd (KIL) entered into a Share Sale & Purchase
Agreement (SSPA) with OKeeffe and/or Nominees (the Purchaser) for the proposed disposal of 2,750,001
issued and paid up ordinary shares of USD1.00 each in Anscan International Limited (AIL) representing 50%
plus 2 share of equity interest in AIL for a total consideration of RM7,000,000 (Proposed Disposal). The salient
terms of the SSPA include, amongst others: (a) the payment of RM2.0 million by AIL to KIL as full discharge of
all amounts owed by AIL to KIL and/or IHMB; and (b) the payment of RM8.0 million by the Purchaser to KIL as
profit sharing for the development of certain projects undertaken by the Purchaser on a date to be agreed by KIL
and the Purchaser or whatever sum to be agreed by both parties. The Proposed Disposal is pending completion.
On 3 May 2006, the Company announced that it was negotiating with a few potential investors to explore the
possibility of entering into a joint-venture agreement and any other arrangement to undertake the forest operations
and the related activities pursuant the rights of a subsidiary granted under the Sustainable Forest Management
License Agreement dated 10 September 1997 (SFMLA). The SFMLA is for 100 years from 10 September 1997
and expiring on 9 September 2097.
The Group is continuously exploring various options to maximize recovery value of the assets of LPSB with a
view that the value will be sufficient to redeem the RSLS.
Acknowledgements
On behalf of the Board, I would like to take this opportunity to express our gratitude and appreciation to the
various Government authorities and agencies, including the Director General of Insurance, for their ongoing
support and guidance to the Group. I would also like to thank our shareholders, valued clients, customers, business
associates and understanding financiers and creditors for their continuing confidence and support to the Group.
I am also grateful to the management and staff at all levels within the Group for their contribution, dedication and
valuable effort.
DATO CHE MOHD ANNUAR CHE MOHD SENAWI
Executive Chairman
Dated: 1 August 2006
8/14/2019 Idaman Unggul 2005 Annual Report
24/102Idaman Unggul Berhad Annual Report 2005 l 22
Directors Report AndFinancial Statements
23-27 Directors Report
28 Statement By Directors
28 Statutory Declaration
29-30 Report Of The Auditors
31 Income Statements
32-33 Balance Sheets
34 Consolidated Statement Of Changes In Equity
35 Statement Of Changes In Equity
36-37 Cash Flow Statements
38-87 Notes To The Financial Statements
8/14/2019 Idaman Unggul 2005 Annual Report
25/102Idaman Unggul Berhad Annual Report 2005 l 23
PRINCIPAL ACTIVITIES
RESULTS
Group Company
RM'000 RM'000
Loss after taxation 25,403 2,729
Minority interests (4) -
Net loss for the year 25,399 2,729
DIVIDEND
The directors hereby present their report together with the audited financial statements of the
Group and of the Company for the financial year ended 31 December 2005.
The principal activities of the Company are that of investment holding and providing corporate,
administrative and management support to its subsidiaries.
There have been no significant changes in the nature of the principal activities during the
financial year.
There were no material transfers to or from reserves or provisions during the financial year other
than as disclosed in the financial statements.
No dividend has been paid or declared by the Company since the end of the previous financial
year.
The principal activities of the subsidiaries are disclosed in Note 12 to the financial statements.
In the opinion of the directors, the results of the Group and the Company during the financial
year were not substantially affected by any item, transaction or event of a material and unusual
nature.
Directors' Report
8/14/2019 Idaman Unggul 2005 Annual Report
26/102Idaman Unggul Berhad Annual Report 2005 l 24
Directors' Report
DIRECTORS
Dato' Che Mohd Annuar bin Che Mohd Senawi
Dato' Ab. Halim bin Mohyiddin
Datuk Che Mokhtar bin Che Ali
Haji Hussein bin HamzahBrig. Jen. (B) Dato' Pahlawan Hj. Jamil bin Tahir
Dr. Radzuan bin Abdul Rahman
DIRECTORS' BENEFITS
DIRECTORS' INTERESTS
1 January 31 December
2005 Purchased Sold 2005
The Company
Direct Interest
Dato' Che Mohd Annuar
bin Che Mohd Senawi 60,709,989 200,000 - 60,909,989
Number of Ordinary Shares of RM1 Each
Since the end of the previous financial year, no director has received or become entitled to
receive a benefit (other than benefits included in the aggregate amount of emoluments received or
due and receivable by the directors as shown in Note 6 to the financial statements or the fixed
salary of a full time employee of the Company) by reason of a contract made by the Company or
a related corporation with any director or with a firm of which he is a member, or with a company
in which he has a substantial financial interest, except as disclosed in Note 29 to the financial
statements.
Neither at the end of the financial year, nor at any time during that year, did there subsist any
arrangement to which the Company was a party, whereby the directors might acquire benefits by
means of the acquisition of shares, irredeemable convertible unsecured loan stocks ("ICULS") or
debentures of the Company or any other body corporate.
According to the register of directors shareholdings, the interests of directors in office at the end
of the financial year in shares or ICULS in the Company and its related corporations during the
financial year were as follows:
The names of the directors of the Company in office since the date of the last report and at the
date of this report are:
8/14/2019 Idaman Unggul 2005 Annual Report
27/102Idaman Unggul Berhad Annual Report 2005 l 25
Directors' Report
DIRECTORS' INTERESTS (CONTD.)
1 January 31 December
2005 Purchased Sold 2005
The Company
Direct InterestDato' Che Mohd Annuar
bin Che Mohd Senawi 113,359,991 - - 113,359,991
ISSUE OF SHARES
OTHER STATUTORY INFORMATION
(a)
(i)
(ii)
Number of ICULS-B of RM0.10 Each
Before the income statements and balance sheets of the Group and of the Company were
made out, the directors took reasonable steps:
to ensure that any current assets which were unlikely to realise their value as shown in
the accounting records in the ordinary course of business had been written down to an
amount which they might be expected so to realise.
to ascertain that proper action had been taken in relation to the writing off of bad debts
and the making of provision for doubtful debts and satisfied themselves that there were
no known bad debts and that adequate provision had been made for doubtful debts; and
Dato' Che Mohd Annuar bin Che Mohd Senawi by virtue of his interest in shares in the Company
is also deemed interested in shares of all the Company's subsidiaries to the extent the Company
has an interest.
None of the other directors in office at the end of the financial year had any interest in shares or
ICULS in the Company or its related corporations during the financial year.
During the financial year, the Company increased its issued and paid-up share capital from
RM379,252,447 to RM394,567,447 by way of conversion of 15,315,000 ICULS-A of RM1 each
for 15,315,000 new ordinary shares of RM1 each.
The new ordinary shares issued during the financial year rank pari passu in all respects with the
existing ordinary shares of the Company.
8/14/2019 Idaman Unggul 2005 Annual Report
28/102Idaman Unggul Berhad Annual Report 2005 l 26
Directors' Report
OTHER STATUTORY INFORMATION (CONTD.)
(b)
(i)
(ii)
(c)
(d)
(e) As at the date of this report, there does not exist:
(i)
(ii)
(f) In the opinion of the directors:
(i)
(ii)
SIGNIFICANT ANDSUBSEQUENT EVENTS
At the date of this report, the directors are not aware of any circumstances which have arisen
which would render adherence to the existing method of valuation of assets or liabilities of
the Group and of the Company misleading or inappropriate.
At the date of this report, the directors are not aware of any circumstances not otherwise
dealt with in this report or financial statements of the Group and of the Company which
would render any amount stated in the financial statements misleading.
any charge on the assets of the Group or of the Company which has arisen since the end
of the financial year which secures the liabilities of any other person; or
any contingent liability of the Group or of the Company which has arisen since the end
of the financial year.
it necessary to write off any bad debts or the amount of the provision for doubtful debts
inadequate to any substantial extent; and
At the date of this report, the directors are not aware of any circumstances which would
render:
the values attributed to the current assets in the financial statements of the Group and ofthe Company misleading.
no contingent or other liability has become enforceable or is likely to becomeenforceable within the period of twelve months after the end of the financial year which
will or may affect the ability of the Group or of the Company to meet their obligations
when they fall due; and
no item, transaction or event of a material and unusual nature has arisen in the interval
between the end of the financial year and the date of this report which is likely to affect
substantially the results of the operations of the Group or of the Company for the
financial year in which this report is made.
The significant and subsequent events are disclosed in Note 26 to the financial statements.
8/14/2019 Idaman Unggul 2005 Annual Report
29/102Idaman Unggul Berhad Annual Report 2005 l 27
Directors' Report
AUDITORS
Signed on behalf of the Board in accordance with a resolution of the directors.
Dato' Che Mohd Annuar bin Datuk Che Mokhtar bin Che Ali
Che Mohd Senawi
Selangor, Malaysia
20 July 2006
The auditors, Ernst & Young, have expressed their willingness to continue in office.
8/14/2019 Idaman Unggul 2005 Annual Report
30/102Idaman Unggul Berhad Annual Report 2005 l 28
Statement By DirectorsPursuant To Section 169(15) Of The Companies Act, 1965
Statutory DeclarationPursuant To Section 169(15) Of The Companies Act, 1965
Signed on behalf of the Board in accordance with a resolution of the directors.
Dato' Che Mohd Annuar bin Datuk Che Mokhtar bin Che Ali
Che Mohd Senawi
Selangor, Malaysia
20 July 2006
Khoo Sai Woon
Before me,
Haron Hashim
No. W128
Commissioner for Oaths
We, Dato' Che Mohd Annuar bin Che Mohd Senawi and Datuk Che Mokhtar bin Che Ali, being
two of the directors of Idaman Unggul Berhad, do hereby state that, in the opinion of the directors,
the accompanying financial statements set out on pages 31 to 87 are drawn up in accordance with
applicable MASB Approved Accounting Standards in Malaysia and the provisions of the
Companies Act, 1965 so as to give a true and fair view of the financial position of the Group and
of the Company as at 31 December 2005 and of the results and the cash flows of the Group and of
the Company for the year then ended.
I, Khoo Sai Woon, being the officer primarily responsible for the financial management of Idaman
Unggul Berhad, do solemnly and sincerely declare that the accompanying financial statements set
out on pages 31 to 87 are in my opinion correct, and I make this solemn declaration conscientiously
believing the same to be true and by virtue of the provisions of the Statutory Declarations Act,
1960.
Subscribed and solemnly declared by the
abovenamed Khoo Sai Woon at Kuala Lumpur
in the Federal Territory on 20 July 2006
8/14/2019 Idaman Unggul 2005 Annual Report
31/102Idaman Unggul Berhad Annual Report 2005 l 29
Report Of The AuditorsTo The Members Of Idaman Unggul Berhad
In our opinion:
(a)
(i)
(ii)
(b)
the financial statements have been properly drawn up in accordance with the provisions of
the Companies Act, 1965 and applicable MASB Approved Accounting Standards in
Malaysia so as to give a true and fair view of:
the financial position of the Group and of the Company as at 31 December 2005 and of
the results and the cash flows of the Group and of the Company for the year then ended;
and
the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the
financial statements; and
the accounting and other records and the registers required by the Act to be kept by the
Company and by its subsidiaries have been properly kept in accordance with the provisionsof the Act.
We have audited the accompanying financial statements set out on pages 31 to 87. These financial
statements are the responsibility of the Company's directors.
It is our responsibility to form an independent opinion, based on our audit, on the financial
statements and to report our opinion to you, as a body, in accordance with Section 174 of the
Companies Act, 1965 and for no other purpose. We do not assume responsibility to any other
person for the content of this report.
We conducted our audit in accordance with applicable Approved Standards on Auditing in
Malaysia. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by the directors, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable basis for our opinion.
8/14/2019 Idaman Unggul 2005 Annual Report
32/102Idaman Unggul Berhad Annual Report 2005 l 30
Report Of The AuditorsTo The Members Of Idaman Unggul Berhad
Ernst & Young George Koshy
AF: 0039 No. 1846/07/07(J)
Chartered Accountants Partner
Kuala Lumpur, Malaysia
20 July 2006
We are satisfied that the financial statements of the subsidiaries that have been consolidated with
the financial statements of the Company are in form and content appropriate and proper for the
purposes of the preparation of the consolidated financial statements and we have received
satisfactory information and explanations required by us for those purposes.
The auditors' reports on the financial statements of the subsidiaries other than an emphasis of
matter as disclosed in Note 12 to the financial statements were not subject to any qualification
material to the consolidated financial statements and did not include any comment required to be
made under Section 174 (3) of the Act.
8/14/2019 Idaman Unggul 2005 Annual Report
33/102Idaman Unggul Berhad Annual Report 2005 l 31
Income StatementsFor The Year Ended 31 December 2005
Note 2005 2004 2005 2004
RM'000 RM'000 RM'000 RM'000
Revenue 3 117,539 141,682 1,559 380
Staff costs 4 (24,311) (26,020) (1,416) (2,445)
Depreciation (2,065) (2,691) (215) (308)
Other income 12,886 32,410 161 539
Other operating expenses (129,440) (152,200) (2,818) (381)Loss before taxation 5 (25,391) (6,819) (2,729) (2,215)
Taxation 7 (12) 7,176 - (1)
(Loss)/profit after taxation (25,403) 357 (2,729) (2,216)
Minority interests 8 4 119 - -
Net (loss)/profit for the year (25,399) 476 (2,729) (2,216)
(Loss)/earnings per share (sen)
- Basic 9 (a) (6.57) 0.13
- Diluted 9 (b) - 0.12
Group Company
The accompanying notes form an integral part of the financial statements.
8/14/2019 Idaman Unggul 2005 Annual Report
34/102Idaman Unggul Berhad Annual Report 2005 l 32
Balance SheetsAs At 31 December 2005
Note 2005 2004 2005 2004
RM'000 RM'000 RM'000 RM'000
ASSETS
Property, plant and
equipment 10 34,921 38,280 707 902
Investment properties 11 32,150 34,703 - -Investment in subsidiaries 12 - - 18,314 18,620
Other investments 13 316,722 475,608 - -
Loans receivable 14 13,994 14,561 - -
Trade receivables 15 48,323 31,917 - -
Other receivables 16 28,357 29,236 41,889 44,227
Cash and bank balances 17 159,075 75,770 976 1,969
Total assets 633,542 700,075 61,886 65,718
LIABILITIES
Trade payables 18 344,936 372,124 - -
Other payables 19 37,331 36,931 11,125 12,062
Hire purchase payables 20 993 1,307 618 784
Taxation 4,477 4,808 - -
Deferred tax liabilities 21 970 827 - -
Total liabilities 388,707 415,997 11,743 12,846
INSURANCE RESERVES
Life assurance fund 22 172,743 185,154 - -
General insurance fund 23 41,763 44,545 - -Total insurance reserves 214,506 229,699 - -
Group Company
8/14/2019 Idaman Unggul 2005 Annual Report
35/102Idaman Unggul Berhad Annual Report 2005 l 33
Balance SheetsAs At 31 December 2005
Note 2005 2004 2005 2004
RM'000 RM'000 RM'000 RM'000
FINANCED BY:
Share capital 24 394,567 379,252 394,567 379,252
ICULS 25 18,382 33,697 18,382 33,697
Reserves (382,630) (358,584) (362,806) (360,077)Shareholders' equity 30,319 54,365 50,143 52,872
Minority interests 8 10 14 - -
30,329 54,379 50,143 52,872
Total liabilities, insurance
reserves and shareholders' equity
The accompanying notes form an integral part of the financial statements.
633,542 700,075 61,886 65,718
Group Company
8/14/2019 Idaman Unggul 2005 Annual Report
36/102Idaman Unggul Berhad Annual Report 2005 l 34
Consolidated Statement Of Changes In EquityFor The Year Ended 31 December 2005
Asse
t
Share
Exchange
Revaluation
Accumulated
Capital
ICULS-A
ICU
LS-B
Reserve
Reserve
Losses
Total
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
RM'000
At1January2004
372,8
21
22,7
50
17,3
78
-
-
(359,0
60)
53,8
89
ConversionofICULS-A(Notes24and25)
6,4
31
(6,4
31)
-
-
-
-
-
Netprofitfortheyear
-
-
-
-
-
476
476
At31D
ecember2004
379,2
52
16,3
19
17,3
78
-
-
(358,5
84)
54,3
65
At1January2005
379,2
52
16,3
19
17,3
78
-
-
(358,5
84)
54,3
65
ConversionofICULS-A(Notes24and25)
15,3
15
(15,3
15)
-
-
-
-
-
Revalua
tionsurplus:
Landandbuildings(Note10)
-
-
-
-
1,59
8
-
1,5
98
Transfertodeferredtaxation(Note21)
-
-
-
-
(242)
-
(242)
Currenc
ytranslationdifferences
-
-
-
(3)
-
-
(3)
Netloss
fortheyear
-
-
-
-
-
(25,3
99)
(25,3
99)
At31D
ecember2005
394,5
67
1,0
04
17,3
78
(3)
1,35
6
(383,9
83)
30,3
19
Theacc
ompanyingnotesforma
nintegralpartofthefinancialstatements.
8/14/2019 Idaman Unggul 2005 Annual Report
37/102Idaman Unggul Berhad Annual Report 2005 l 35
Statement Of Changes In EquityFor The Year Ended 31 December 2005
Share Accumulated
Capital ICULS-A ICULS-B Losses Total
RM'000 RM'000 RM'000 RM'000 RM'000
At 1 January 2004 372,821 22,750 17,378 (357,861) 55,088
Conversion of ICULS-A
(Notes 24 and 25) 6,431 (6,431) - - -
Net loss for the year - - - (2,216) (2,216)
At 31 December 2004 379,252 16,319 17,378 (360,077) 52,872
At 1 January 2005 379,252 16,319 17,378 (360,077) 52,872
Conversion of ICULS-A
(Notes 24 and 25) 15,315 (15,315) - - -
Net loss for the year - - - (2,729) (2,729)
At 31 December 2005 394,567 1,004 17,378 (362,806) 50,143
The accompanying notes form an integral part of the financial statements.
8/14/2019 Idaman Unggul 2005 Annual Report
38/102Idaman Unggul Berhad Annual Report 2005 l 36
Cash Flow StatementsFor The Year Ended 31 December 2005
2005 2004 2005 2004
RM'000 RM'000 RM'000 RM'000
CASH FLOWS FROM OPERATING
ACTIVITIES
Loss before taxation (25,391) (6,819) (2,729) (2,215)
Movement in insurance funds (12,739) (26,627) - -
Adjustment for:Provision for/(write back of)
doubtful debts
- non-consolidated
subsidiaries - (2,110) 827 (2,110)
- others 72 (24,096) - -
Depreciation of property, plant
and equipment 2,549 3,422 215 308
Impairment losses on property,
plant and equipment 2,571 370 - -
(Write back of)/provisionfor dim