TALAM CORPORATION BERHADcont’d) PROFILE OF BOARD OF DIRECTORS TAN SRI DATO’ (DR) IR CHAN AH CHYE...

L a p o r a n T a h u n a n 2 0 0 9 A n n u a l R e p o r twww.talam.com.my

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Contents

2 CorporateStructure

4 CorporateInformation

5 ProfileofBoardofDirectors

9 FinancialHighlights

10 Chairman’sStatement

12 ReviewofOperations

16 StatementonCorporate Governance

23 AdditionalCompliance Information

28 StatementonInternalControl

30 AuditCommitteeReport

35 FinancialStatements

133 ListofProperties

140 StatementonDirectors’ Interests

141 AnalysisofShareholdings

144 NoticeofAnnualGeneral Meeting

148 StatementAccompanying NoticeofAnnualGeneral Meeting

FormofProxy

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CORPORATE STRUCTURE

ANNUAL REPORT 2009

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CORPORATE INFORMATION

BOARD OF DIRECTORS

TsenKengYamChairmanIndependent Non-Executive Director

Y.A.M.TengkuSulaimanShahAl-HajIbniAl-MarhumSultanSalahuddinAbdulAzizShahAl-HajDeputy ChairmanIndependent Non-Executive Director

TanSriDato’(Dr)IrChanAhChye@ChanChongYoonNon-Independent Non-Executive Director

Dato’KamaruddinBinMatDesaIndependent Non-Executive Director

ChuaKimLanExecutive Director

LoyBoonChenExecutive Director

LeeSweeSengNon-Independent Non-Executive Director

WinstonMahYatKongIndependent Non-Executive Director

AUDIT COMMITTEE

TsenKengYamChairmanMember of the Malaysian Institute of Accountants

Y.A.M.TengkuSulaimanShahAl-HajIbniAl-MarhumSultanSalahuddinAbdulAzizShahAl-HajMember

Dato’KamaruddinBinMatDesaMember

NOMINATION COMMITTEE

Y.A.M.TengkuSulaimanShahAl-HajIbniAl-MarhumSultanSalahuddinAbdulAzizShahAl-HajChairman

TanSriDato’(Dr)IrChanAhChye@ChanChongYoonMember

Dato’KamaruddinBinMatDesaMember

REMUNERATION COMMITTEE

Y.A.M.TengkuSulaimanShahAl-HajIbniAl-MarhumSultanSalahuddinAbdulAzizShahAl-HajChairman

LeeSweeSengMember

WinstonMahYatKongMember

COMPANY SECRETARY

TingKokKeong(MAICSA7058942)

PRINCIPAL BANKERS

RHBInvestmentBankBerhadEONBankBerhad

REGISTERED OFFICE

Suite2.05,Level2MenaraMaxisegarJalanPandanIndah4/2PandanIndah55100KualaLumpurTelno.: 03-42962000Faxno.: 03-42977220Website:www.talam.com.my

Customer Service Action CentreTelno.: 03-42943388Faxno.: 03-42805035

SHARE REGISTRAR

SecuritiesServices(Holdings)SdnBhdLevel7,MenaraMileniumJalanDamanlelaPusatBandarDamansaraDamansaraHeights50490KualaLumpurTelno.: 03-20849000Faxno.: 03-20949940/03-20950292

AUDITORS

BakerTillyMonteiroHengCharteredAccountants22-1,Monteiro&HengChambersJalanTunSambanthan350470KualaLumpurTelno.: 03-22748988Faxno.: 03-22601708

STOCK EXCHANGE LISTING

ListedonMainBoardofBursaMalaysiaSecuritiesBerhad

ANNUAL REPORT 2009

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PROFILE OF BOARD OF DIRECTORS

TSEN KENG YAM

Malaysian,aged59,Chairman/IndependentNon-ExecutiveDirector,joinedtheBoardofTalamCorporationBerhad(“Talam”)on30April2004andbecametheChairmanon22January2009.HeisalsotheChairmanoftheAuditCommittee.HeiscurrentlyaDirectorofRiverviewRubberEstatesBerhadandNarlboroughPlantationsPlc.

HeisaFellowoftheInstituteofCharteredAccountants(EnglandandWales)andamemberofMalaysianInstituteofAccountantsandMalaysianInstituteofCertifiedPublicAccountants.

In 1978, he joined Hanafiah Raslan & Mohamed as a consultant and wassubsequentlypromotedtoSeniorConsultantin1980.HewasaprincipalofHanafiahRaslan&Mohamedfrom1984to1987andwasapartnerofArthurAndersen&Co.formorethan14yearsfrom1988to2003.

HehasnofamilyrelationshipwithanyotherdirectorsormajorshareholdersoftheCompany.ThereisnoconflictofinterestwiththeCompany.Withinthelast10years,hehasnoconvictionsforoffences.

Hehasattendedallthesix(6)BoardofDirectors’meetingsheldduringthefinancialyearended31January2009.

Y.A.M. TENGKU SULAIMAN SHAH AL-HAj IBNI AL-MARHUM SULTAN SALAHUDDIN ABDUL AzIz SHAH AL-HAj

Malaysian, aged 59, Deputy Chairman/Independent Non-Executive Director,joinedtheBoardofTalamasDeputyChairmanon22December2000.HeistheChairmanoftheRemunerationCommitteeandNominationCommitteeandalsoamemberof theAuditCommittee.He iscurrentlyadirectorofCoswayCorporationBerhadandBanengHoldingsBerhad.

Since1970,Y.A.M.TengkuSulaimanShahbecameactivelyinvolvedinbusinessparticularly inbuilding constructionandhousingdevelopment.Y.A.M.TengkuSulaimanShahwithhisotherpartnersformedSyarikatPembinaanSetiaSdnBhd(nowknownasSPSetiaBerhad)andin1997,herelinquishedhispositionandsoldoffallhissharesinSPSetiaBerhad.In1970Y.A.M.TengkuSulaimanShahwasappointedastheStatePalace’sOfficerwhichcarriesthetitle“TengkuPanglimaBesarofSelangor”byHisRoyalHighness,thelateSultanofSelangor

SultanSalahuddinAbdulAzizShah.In1978Y.A.M.TengkuSulaimanShahwasthenpromotedastheChiefofCeremonyfortheStateofSelangorwhichcarriesthetitle“TengkuPanglimaDiRajaSelangor”untiltoday.Y.A.M.TengkuSulaimanShahisalsoamemberofTheCouncilofRoyalCourtofSelangor(AhliDewanDiRajaSelangor).


Hehasattendedfive(5)outofsix(6)BoardofDirectors’meetingsheldduringthefinancialyearended31January2009.

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TAN SRI DATO’ (DR) IR CHAN AH CHYE @ CHAN CHONG YOON

Malaysian,aged63,Non-IndependentNon-ExecutiveDirector,joinedtheBoardof Talamon6November1990.Hewas formerly the ExecutiveChairman ofTalam prior to his re-designation as Non-Independent Non-Executive Directoron22 January 2009.He is amember of theNominationCommittee.He isalsocurrentlytheExecutiveDirector(President/ChiefExecutive)ofKumpulanEuroplusBerhad.

HegraduatedwithaBachelorsDegreeinCivilEngineeringfromtheUniversityofMalayain1970andisamemberoftheInstitutionofEngineers,Malaysiasince1974andwassubsequentlymadeaFellowin1984.Hehasover38yearsofexperience in thepropertyandconstruction industry sincehestartedhiscareerwithMessrsBinnie&Partners(M)SdnBhdandlaterjoinedPerbadananKemajuan Negeri Selangor in 1971 as a Project Manager handling projectdesigns,managementandpropertydevelopment.TanSriChanwasawardedthe

prestigious“PropertyManoftheYear1998”byFederationInternationaleDesProfessionsImmobilieres(“FIABCI”)inrecognitionofhisachievementsinpropertydevelopment.TanSriChanwasconferredtheHonoraryDoctorateofScience(Engineering)bytheUniversityMalayaon11August2003.

TanSriChanisthespouseofPuanSriDatinThongNyokChoo,amajorshareholderofTalam.HehasdirectanddeemedinterestinKumpulanEuroplusBerhad,amajorshareholderofTalam.ThereisnoconflictofinterestwiththeCompanyexceptforthosetransactionsdisclosedinitem9,pages24to27oftheAdditionalComplianceInformationandNote45totheFinancialStatementsofthisAnnualReport.Withinthelast10years,hehasnoconvictionsforoffences.


DATO’ KAMARUDDIN BIN MAT DESA

Malaysian,aged58,IndependentNon-ExecutiveDirector,joinedtheBoardofTalamon1October2007.HeisamemberoftheAuditCommitteeandNominationCommittee.

Dato’KamaruddinholdsaBachelorofLaws(Hons)fromInternationalIslamicUniversity, Petaling Jaya, Selangor (1993) and is currently an Advocate andSolicitor,HighCourtofMalaya.

Hehadextensiveexperience in theRoyalMalaysianPoliceForce.Duringhisdistinguishedcareer,heheldpositionssuchasGeneralDuty/Traffic,PlatoonCommander, Police Field Force, Officer in-charge of Police Sub-District, AreaInspector,StateTrafficChiefSelangor,DeputyOCPD,StaffOfficer(Prosecution)SessionCourt(Selangor),StaffOfficer(Admin)CIDSelangor,PoliceSecretary/Special Officer to IGP, Officer in-charge of Criminal Investigation Department,

DeputyChiefPoliceOfficerandDeputyDirector,CommercialCrimeInvestigationDepartment.

HeiscurrentlyaPartnerinalawfirmpracticingunderthenameandstyleofFaridzah&Co.


Hehasattendedfive(5)outofsix(6)BoardofDirectors’meetingsheldduringthefinancialyearended31January2009.

ANNUAL REPORT 2009

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CHUA KIM LAN

Malaysian,aged45,Non-IndependentExecutiveDirector, joined theBoardofTalamon1October2007.

Ms Chua Kim Lan graduated from College Tunku Abdul Rahman in BuildingTechnology in 1984 and holds a Master of Business Administration fromHonoluluUniversity,Hawaii in2000.ShewaspreviouslyattachedtoBrisdale(M)SdnBhdfor5yearsfrom1984to1989andTalamfor1yearpriortojoiningEuroplusBerhadasaQuantitySurveyorin1991.ShewastransferredbacktoTalamsubsequenttothemergerexercisein2003andwasformerlytheDeputyPresidentofTalam.

ShehasnofamilyrelationshipwithanyotherdirectorsormajorshareholdersoftheCompany.ThereisnoconflictofinterestwiththeCompany.Withinthelast10years,shehasnoconvictionsforoffences.

She has attended all the six (6) Board ofDirectors’meetings held during the financial year ended31 January2009.

LOY BOON CHEN

Malaysian,aged57,Non-IndependentExecutiveDirector, joined theBoardofTalamon1October2007.Hewasre-designatedasanExecutiveDirectoron22January2009.

Mr Loy Boon Chen holds a Master Degree in Business Administration fromGoldenGateUniversity,SanFrancisco,USAandisaCertifiedPublicAccountant,Malaysia.

MrLoyservedaninternationalaccountingfirmforseven(7)yearspriortojoiningChongKokLin&SonsBerhadin1980asAccountantcumSecretaryforayear.In1981,hejoinedMudajayaConstructionSdnBhdasChiefAccountantbeforebeingappointedGroupFinancialControllerofIJMCorporationBerhadin1994.MrLoywasappointed theFinancialDirectorof IJMCorporationBerhad from1998,andwastheHeadoftheFinance&AccountsDepartmentandChairman

ofIJMGroupRiskManagementCommitteeuptilltheendof2006.Thereafter,hewasassignedtobeinchargeofspecialprojects.MrLoywasamemberoftheAccountingStandardsSub-CommitteeoftheFederationofPublicListedCompaniesBerhad(1998-2006).

HeisalsocurrentlyanExecutiveDirectorofKumpulanEuroplusBerhad,amajorshareholderoftheCompanyandanIndependentandNon-ExecutiveDirectorofGuangdongProvincialExpresswayDevelopmentCo.Limited,acompanylistedontheShenzhenStockExchange,China.



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LEE SwEE SENG

Malaysian, aged 48, Non-Independent Non-Executive Director, joined theBoardofTalamon1October2007.HeisalsoamemberoftheRemunerationCommittee.

MrLeeSweeSengholdsaBachelorofLaws(Hons)fromUniversityofMalaya,MasterofLawsfromUniversityofMalayaandMasterofBusinessAdministrationfromSouthernCrossUniversity,Australia.

MrLeewascalledtotheMalaysianBar in1985andhasbeen inactive lawpracticesincethen.HeiscurrentlytheManagingPartnerofLeeSweeSeng&Co.HeisalsoaCertifiedNationalTrainerofJuniorChamberInternationalandaPastNationalPresidentofJuniorChamberMalaysiain1999.

MrLeeisaMemberoftheMalaysianInstituteofArbitratorsandanassociatemember of the Malaysian Institute of Management (“MIM”) as well as thePresident of the MIM KL Toastmasters Club 2005/2006 and Distinguished

ToastmasterofToastmastersInternational.HewasaDivisionGovernorforToastmastersInternational2006/2007.HeisaCertifiedMediatoroftheMalaysianMediationCentre.HeisalsoaTradeMarksandIndustrialDesignsAgentaswellasPatentAgent.HeisamemberoftheMalaysianInstituteofCorporateGovernanceaswellasaCharteredAuditCommitteeDirector.HeisalsoaNotaryPublic.

MrLeebelieves incontinuingeducationand isoften invited tospeak todirectorsofpublic listedcompanies intheirContinuingEducationProgrammeandalsobyotherprofessionalbodieslikeMAICSAandLexis-Nexisintheirprofessionaldevelopmentprogrammes.

HeispresentlyanIndependentNon-ExecutiveDirectorofOpenSys(M)Berhad.HeisalsoaVisitingFellowofTaylor’sLawSchool,Taylor’sCollege.



wINSTON MAH YAT KONG

British,aged55,IndependentNon-ExecutiveDirector,joinedtheBoardofTalamon22January2009.HeisalsomemberoftheRemunerationCommittee.

MrWinstonMahholdsaBachelorofArts(Hons)degreeinBusiness,CorporateFinance&AccountingfromSheffieldHallamUniversityofUnitedKingdomandhe is also an associate member of the Chartered Institute of ManagementAccountants,UnitedKingdom.

Hehasheldseniorexecutivepositions(GlobalChiefExecutiveOfficer,RegionalPresident)atSinarMas/PP,YeoHiapSengGroupandGlobalFMGGCompanies,includingSeagrams,MarsIncandNestle.Duringthatperiod,hehasworkedinUnitedStatesofAmerica,Europe,AsiaPacific(includingChinaandMalaysia)andAfrica.

HehasnofamilyrelationshipwithanyotherdirectorsormajorshareholdersoftheCompany.ThereisnoconflictofinterestwiththeCompany.Withinthelast

10years,hehasnoconvictionsforoffences.

Hehasattendedtheonlyone(1)BoardofDirectors’meetingheldduringhistenureinofficeforthefinancialyearended31January2009.

ANNUAL REPORT 2009

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FINANCIAL HIGHLIGHTS

2009 2008 2007* 2006* 2005 RM’000 RM’000 RM’000 RM’000 RM’000

GROUP

TotalAssets 3,040,646 3,106,497 3,260,395 3,270,833 3,959,017Equityattributabletoequityholders oftheCompany 390,937 344,460 346,516 338,540 1,081,574Revenue 301,278 248,349 216,723 599,814 1,006,032Profit/(Loss)beforetax 60,563 5,821 (6,936) (772,644) 130,746Earnings/(Loss)pershare(sen) 9.39 0.53 1.43 (124.50) 15.83

COMPANY

TotalAssets 759,038 766,761 768,245 731,490 1,102,842Equityattributabletoequityholders oftheCompany 325,037 320,195 343,081 333,407 798,104Revenue – 3,496 1,646 2,199 12,626Profit/(Loss)beforetax 4,287 (23,142) 5,744 (466,782) 12,033

* Restated

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CHAIRMAN’S STATEMENT

It is indeed an honour for me to address you for the first time as the Chairman of Talam Corporation Berhad (“Talam”) and on behalf of the Board of Directors of Talam, I am pleased to present the Annual Report and Audited Financial Statements of the Group and the Company for the financial year ended 31 January 2009.

Thefinancialyearunderreviewhasbeenaturbulentonefortheglobalfinancialmarketsandeconomiesworldwide.Weareexperiencingeconomiccrisisinmostpartsoftheworldwhichhaveadverselyaffectedalleconomiesandbusinessesworldwide,Malaysiaisnoexceptionandwewillhavetoendurethechallengingperiodahead.

Theperseverance,determinationandintegrityofourBoardmembers,managementteamandemployeesovertheyearshavecertainlybeeninstrumentalinsupportingandsustainingtheGrouptoridethroughthecurrenteconomicdownturn.

Inviewoftherapidlyslowingglobaleconomy,TalamwillcontinuetoworkhardertostrengthenthefinancialfootingoftheGrouptoremainresilientinthisdifficultoperatingenvironmentandbeonthelookoutforanynewopportunitiesthatmaypresentthemselves.

FINANCIAL HIGHLIGHTS

Forthefinancialyearended31January2009,theGroupachievedrevenuesofRM301.28millionascomparedtothepreviousfinancialyearofRM248.35million.TheGroupattainedprofitaftertaxafterminorityinterestofRM59.11millionwhich translated toearningsper shareof9.39sen, up from0.54sen in2008. The increase ismainlyattributabletothereversalofinterestcostspreviouslyaccruedanddebtwaivergrantedbythelenderspursuanttotheimplementationoftheRegularisationPlan.

AnotherpositivehighlightpursuanttotheimplementationoftheRegularisationPlanwasthatthereservesoftheGrouphasbeenturnedintoasurplusofRM5.28millionascomparedtoadeficitofRM297.71millioninthepreviousfinancialyear.ThiswasachievedmainlybycreditingofRM257.08millionarisingfromthereductionofsharecapitaltotheaccumulatedlossesaccountduringthefinancialyearbesidetheprofitaftertaxafterminorityinterest.

REGULARISATION PLAN

Subsequenttotheshareholders’approvalobtainedviatheCompany’sExtraordinaryGeneralMeetingheldon15September2008,wearenowinthefinalstageof implementationoftheRegularisationPlan.TheCompanyhasobtainedallrequiredapprovalfortheissuanceofthedebtinstrumentstothelendersasmodeofsettlementandupontheissuanceandlistingoftherelevantdebtinstruments,whichisexpectedtobecompletedinJune2009,wewillhaveachievedamajorobjectiveoftheRegularisationPlanwhichistherestructuringandsettlementofthedefaultedborrowingsoftheGroup.ThiscoupledwiththereductioninsharecapitalandtheentiresharepremiumaccounthavesignificantlyimprovedthecapitalstructureandgearingpositionoftheGroupwhichIbelieve,willprovidetheGroupwithastrongerfinancialfootingastheGroupstrivetoendurethechallengesahead.

ANNUAL REPORT 2009

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PROSPECT

TheyearaheadwillundoubtedlybemorechallengingfortheGroupamidsttheuncertainglobalfinancialandeconomiccrisis.OurkeyemphasisfortheyearwillbetocompletetheconstructionofhousessoldandtheinternalrestructuringofmanagementanddepartmentalorganisationforaleanerstructuretosuitthenewbusinessmodelandoperatingenvironmentoftheGroup.WhilethebusinessandoperationoftheGroupwillbeaffected,theGroupwillpracticeprudentriskmanagementandbusinessstrategiestomeetthechallengesahead.

ACKNOwLEDGEMENT

OnbehalfoftheBoardofDirectors,IampleasedtowelcomeMrWinstonMahYatKongtotheBoard.IwouldalsoliketotakethisopportunitytothankDatukAbRaufbinYusohwhohasresignedfromtheBoard,forhisinvaluablecontributionstotheGroupandtheBoardduringhistenure.

Iwishtoextendmyheartfeltappreciationtoourshareholderswhohavebeensteadfastandtoourvaluedcustomers,businesspartners,lenders,contractorsandcreditorsfortheircontinuedsupport.Furthermore,mysincereappreciationtothemanagementandstaffsfortheirdedicationanduntiringcommitmenttotheGroup.

Lastbutnotleast,mysinceregratitudetotheSecuritiesCommission,BursaMalaysiaSecuritiesBerhadandalltherelevantauthoritiesfortheircontinuedguidanceandadvice.

TSEN KENG YAMChairmanIndependentNon-ExecutiveDirector

CHAIRMAN’S STATEMENT

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PROPERTY INvESTMENT AND DEvELOPMENT

PropertyinvestmentanddevelopmentisthecorebusinessofTalamCorporationBerhad(“Talam”)whichhascontributed93.5%ofitsturnover.Talamanditssubsidiaries(“TalamGroup”)haveatotalbalancelandbankof5,792acrescomprisingamixedportfolioofcommercial, residentialand industrialpropertiesatvariousstrategic locations inAmpang,Sepang,Puchong,BukitJalilandRawang.

InformationofthehousingdevelopmentprojectscurrentlybeingundertakenandtobeundertakenbytheTalamGrouparedetailedasfollows:-

(1) Existing Projects

a. Taman Puncak jalil

TamanPuncakJalil,a801-acreleaseholdland,islocatednexttoTechnologyParkalongSungaiBesi,Puchongroad.AdjacentdevelopmentsareLestariPerdanaonthesouthest,TamanEquineonthesouth,BandarKinraraonthenorthwestandBukitJalilSportsComplexonthenorth.Thedevelopment,whichisundertakenbyMaxisegarSdnBhd,awholly-ownedsubsidiaryofTalam,isanintegratedandself-containedtownshipcomprising8,102unitsof residentialandcommercialproperties.Thisstrategically locatedprojecthasattractedstronginterestfromthepublic.TheGrossDevelopmentValueofTamanPuncakJalilisestimatedtobeaboutRM2.13billionwithanexpecteddevelopmentperiodoftwelve(12)years.TheprojectwasfirstlaunchedinJune2001andasat31January2009,theprojecthasrecordedsalesof7,358unitsvaluedatRM1.60billion.

b. Ukay Perdana

UkayPerdanaisamixeddevelopmentprojecton345acresofconvertedleaseholdlandlocatedat7thmileoffJalanUluKlanginthevicinityofBukitAntarabangsaandTamanUkayandisundertakenbyUkayLandSdnBhd,awholly-ownedsubsidiaryofTalam. It isapproximately14.4kmnorth-eastofKualaLumpurCityCentre,whichisabout15minutesdrivenorth-eastofKualaLumpurCityCentreviaelevatedhighway.

Thedevelopmentconsistsof6,200unitsofresidentialandcommercialpropertieswithanexpectedGrossDevelopmentValueofRM870.90million.Asat31January2009,atotalof6,047unitsofpropertiesvaluedatRM822.56millionhavebeensold.

c. Lestari Puchong

LestariPuchongisaprojectundertakenbyLestariPuchongSdnBhd,awholly-ownedsubsidiaryofTalam.TheproposedsiteislocatedoffJalanAkademiPutra,approximately1.2kilometersfromPersimpanganSerdangExitNo.1123,inthevicinityofSeriKembangan,Selangor.ThesiteiseasilyaccessiblefromKualaLumpur-SerembanHighwayviaJalanSungaiBesiandstrategicallylocatedtothenorthofUniversityPutraMalaysiaresearchcentre.

LestariPuchongisamixeddevelopmentcomprising8,256unitsofresidentialpropertiesand327unitsofcommercialproperties.WithanestimatedGrossDevelopmentValueofRM1.10billion,LestariPuchongisexpectedtospanoveradevelopmentperiodoftwelve(12)years.LaunchedinMarch2001,LestariPuchonghasachievedsalesof4,797unitsvaluedatRM733.61millionasat31January2009.

d. Kinrara Section 3

KinraraSection3isaprojectundertakenbySentosaRestu(M)SdnBhd,awholly-ownedsubsidiaryofTalam.Theprojectislocatedon43acresoflandintheDaerahofPetaling,oppositeoftheKinraraArmyCamp.Theproposeddevelopmentconsistsof3,296unitsofresidentialandcommercialproperties.Itwasfirstlaunchedin1999withanestimatedGrossDevelopmentValueofRM426.55million.Asat31January2009,KinraraSection3hasachievedsalesofRM419.56millionrepresenting3,214unitssold.

REVIEW OF OPERATIONS

ANNUAL REPORT 2009

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e. jalil Heights

JalilHeightsislocatedona31.4-acreleaseholdlandinMukimofPetaling,PetalingDistrictwithinthedevelopmentknownasLestariPerdana.Itisearmarkedforthedevelopmentof284unitsofsemi-detachedhousesundertakenbyAbraDevelopmentSdnBhd,awholly-ownedsubsidiaryofTalam.TheprojecthasanestimatedGrossDevelopmentValueofRM101.00million.SinceitsfirstlaunchinSeptember2001,JalilHeightshasrecordedsalesofRM95.99million,representing267unitssold,asat31January2009.

f. Saujana Puchong

SaujanaPuchongisadevelopmentundertakenbyExpandFactorSdnBhd,awholly-ownedsubsidiaryofTalam,onapproximately423acresof99yearsleaseholdlandinthePetalingDistrict.TheprojectsiteislocatedinthegrowthareaofPuchongandiseasilyaccessibleviaLebuhrayaDamansaraPuchongandtheKualaLumpur-SerembanHighwaythroughtheSerdang-PuchongdualcarriagewaythatlinksJalanPuchongtoSerdang.

Theentiredevelopmentcomprises4,933unitsofterracehouses,apartmentsandshoplots,whichuponcompletion,areexpectedtogenerateaGrossDevelopmentValueofRM634.37million.Asat31January2009,theprojecthasrecordedsalesof4,545unitsvaluedatRM606.64million.

g. Danau Putra

DanauPutraisamixeddevelopmentundertakenbyCekapMesraDevelopmentSdnBhd,a50.01%-ownedsubsidiaryofTalamGroup,onapproximately417.34acresof99yearsleaseholdlandintheMukimofDengkil,DistrictofSepang,withintheMultimediaSuperCorridor.

DanauPutraisplannedformixeddevelopmentofmediumlowcostapartment,clusterbungalowsandshop/apartmentswithaGrossDevelopmentValueofRM630.00million.Launched inAugust1998,DanauPutrahasachievedsalesof3,879unitsvaluedatRM361.08millionasat31January2009.

h. Putra Perdana

PutraPerdanaisaprojectundertakenbyKenshineCorporationSdnBhd,awholly-ownedsubsidiaryofTalam,situatedon600acresofconvertedleaseholdland.TheprojectislocatedonthesouthernsideofPuchong-Kajangtrunkroad,5kmfromBatu14Puchong,withinCyberjayaandadjacenttotheMultimediaSuperCorridor,5kmwestofPutrajayaand13kmnorthoftheKualaLumpurInternationalAirport.

WithanexpectedGrossDevelopmentValueofRM1.92billion,PutraPerdanawillconsistofresidentialhouses,apartments,shopoffices,commercialcomplex,exhibitioncenter,themegarden,hotelandserviceapartments.Asat31January2009,theprojecthasrecordedsalesof7,797unitsvaluedatRM831.68million.

i. Saujana Putra

SaujanaPutraisaprojectundertakenbyGalianJutaSdnBhd,awholly-ownedsubsidiaryofTalam.Itownsalandmeasuringabout200acresinsizelocatedoppositePutraHeightsinMukimTanjungDuabelas,KualaLangatDistrict.Withaproposeddevelopmentcomprisinglowtomediumcostapartmentsandmediumcostterracehouse,ithasanestimatedGrossDevelopmentValueofRM336.75millionoveradevelopmentlifespanofeleven(11)years.LaunchedinMarch2003,SaujanaPutrahasachievedsalesof527unitsvaluedatRM74.60millionasat31January2009.


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j. Lestari Permai

LestariPermaiissituatedonapproximately76.01acresof99yearsleaseholdlandandlocatedoppositethePutrajayaGate2entranceand isundertakenbyEuroplusConstructionSdnBhd,awholly-ownedsubsidiaryofTalam.TheprojectwillbeaccessibleviaLebuhrayaDamansaraPuchong,Puchong-Serdangbypass,andJalanPuchong.Theproposeddevelopmentcomprises1,004unitsofresidentialhousesand24unitsofdoublestoreyshopand7unitsoflowcostshop.

WithGrossDevelopmentValueofRM132.07million,LestariPermaiwaslaunchedinMarch2003and

hasachievedsalesof566unitsvaluedatRM80.37millionasat31January2009.

k. Bukit Sentosa

BukitSentosaI&IIIformanintegratedtownshipcoveringapproximately1,898acresoffreeholdlandintheMukimofSerendah,approximately47kmnorthofKualaLumpur.ItiseasilyaccessiblethroughtheNorth-SouthExpresswayandexitatBukitBeruntungInterchange.Thecomprehensivenewtownshipcomprisesamixeddevelopmentofresidential,commercialandindustrialproperties.

BukitSentosaI,whichisbeingdevelopedbyTalamIndustriesSdnBhd,awholly-ownedsubsidiaryofTalam,isplannedformixeddevelopmentcomprising9,573unitsofterracehouses,apartmentsandshoplots.LaunchedinSeptember1999,theprojecthasgeneratedtotalsalesofRM712.60millionasat31January2009.

BukitSentosaIII,covering1,010acresoffreeholdland,isdevelopedbyMaxisegarSdnBhd.Itisplanned

foramixeddevelopmentof14,790unitsof terracehouses,apartmentsandshoplots,withaGrossDevelopmentValueofRM1.30billion.LaunchedinMarch1997,BukitSentosaIIIhasachievedatotalsalesofRM577.80million(or7,191unitssold)asat31January2009.

l. Bandar Bukit Beruntung

BandarBukitBeruntung,aconverted5,500acresof freehold land is locatednorth-westofRawang,approximately40kmfromKualaLumpur.ItisundertakenbyEuroplusCorporationSdnBhd,awholly-ownedsubsidiaryofTalam.Themegatownshipwhichismarketedasthe“2ndPetalingJaya”hasagolfresort,countryhomes,campus,industrial,commercialandhousingunitswithanexpectedGrossDevelopmentValueofRM3.36billion.Thedevelopmentoftheentiretownshipisexpectedtospananothertwelve(12)yearstotheyear2020.

Launched in late1991, thisprojecthasachieveda totalsalesvalueofRM1.52billion representing13,398unitssoldasat31January2009.

m. Prima Beruntung

PrimaBeruntung is a converted250acres of freehold landplanned forwithmixeddevelopment. AprojectlaunchedbyEuroplusBerhad,awholly-ownedsubsidiaryofTalam,PrimaBeruntungisseenasanextensionoftheBandarBukitBeruntungprojectduetoitsproximitytoBandarBukitBeruntung.WithanestimatedGrossDevelopmentValueofRM257.80million,PrimaBeruntunghasachievedatotalsalesvalueofRM182.79million(representing1,897unitssold)asat31January2009.


ANNUAL REPORT 2009

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(2) Future Project

Shah Alam 2 (Berjuntai Bistari Land)

TheproposedShahAlam2covering1,284acresislocatedadjacenttotheUniversitiIndustriSelangor(“UNISEL”)campusandabout44kmfromthetownsofBatangKaliandKualaSelangor,30kmfromRawangand20kmfromBukitBeruntung.WhilethecurrentaccesstothesiteisbythecoastalroadpassingbyKualaSelangororthetrunkroadfromRawang,ShahAlam2willeventuallybereachedbya10kmproposedroadfromtheBukitBeruntungInterchangeofftheNorth-SouthHighway,tobeconstructedbyMaxisegarSdnBhd.

BerjuntaiBistariistobedevelopedoverfifteen(15)yearsandwillcompriseapproximately15,500unitsofresidentialandcommercialpropertieswithanestimatedGrossDevelopmentValueofRM1.50billion.

(3) joint-venture Projects

a. 252 Units 2½ Storey Terrace House at Ukay Perdana

Thisparcelofdevelopmentisa50:50joint-ventureprojectundertakenbyGoodDebutSdnBhd.ThedevelopmentispartofUkayPerdanaprojectandislocatedat7thmileoffJalanUluKlanginthevicinityofBukitAntarabangsa.TheGrossSalesValueisestimatedtobeRM96.55million.Asat31January2009,atotalof150unitsofsalesvalueofRM57.50millionwereachieved.

b. Sierra Ukay

SierraUkayisa50:50joint-ventureprojectundertakenbySierraUkaySdnBhd.Theprojectmeasures90acresandislocatedinMukimUluKelangadjacenttotheexistingUkayPerdana.TheGrossDevelopmentValueofSierraUkayisestimatedtobeRM403.00millionandisexpectedtobeimplementedoveraperiodoffive(5)years.LaunchedinOctober2007,theprojecthasachievedsalesof222unitsvaluedatRM74.59millionasat31January2009.

c. Sierra Selayang

SierraSelayangisa50:50joint-ventureprojectundertakenbyCekapTropikalSdnBhd.Theprojectmeasures204acresandislocatedatUluGombakForestReserve,MukimofBatu,DistrictofGombak,StateofSelangor.TheGrossDevelopmentValueofSierraSelayangisestimatedtobeRM963.90millionandisexpectedtobeimplementedoveraperiodofeight(8)years.

d. Yin Hai Complex in Changchun, jilin Province, The People’s Republic of China

YinHaiComplexisaprojectundertakenbyJilinDingtaiEnterpriseDevelopmentCo.Ltd.,asubsidiaryofLarutLeisureEnterprise(HongKong)Ltd.,a50:50equityinterestcompanyheldbyLarutOverseasVenturesSdnBhd,asubsidiaryofTalamandIJMPropertiesSdnBhd,asubsidiaryofIJMCorporationBerhad.TheproposedYinHaiComplexisa35-storeybuildingcomprising28office-cum-residentiallevels,7shoppingpodiumlevelsand2basementlevels.TheGrossSalesValueofYinHaiComplexisestimatedtobeRMB738million.

OTHER BUSINESSES

TheTalamGroup’sotherbusinessesinhotelandrecreationcontributedapproximately6.5%ofitsturnoverinfinancialyear2009.


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STATEMENT ON CORPORATE GOVERNANCE

TheBoardofDirectors(“Board”)ofTalamCorporationBerhad(“Talam”or“theCompany”)recognisestheimportanceofgoodcorporategovernancetoensurethesuccessoftheCompany’sbusinessandiscommittedtoinstillhighstandardsofcorporategovernancethroughouttheGrouptoenhanceitsshareholdervalueandfinancialperformance.

ThestatementbelowsetsouthowtheGrouphasappliedthekeyprinciplesoftheMalaysianCodeonCorporateGovernance(Revised2007)[“Code”]andtheextentofitscompliancewiththebestpracticesoftheCode.

(A) DIRECTORS

(i) The Board

TheBoardhasoverallresponsibilityforthestrategicdirectionandcontroloftheGroup.

TheBoardmeetsregularlyonaquarterlybasiswithadditionalmeetingsbeingconvenedasandwhennecessary.Duringthefinancialyearended31January2009,six(6)BoardMeetingswereheldandtheattendanceofeachDirectorissetoutbelow:-

Number of Board meetings attended/ held (during theDirectors Directors’ tenure)

TsenKengYam(Chairman) 6outof6Y.A.M.TengkuSulaimanShahAl-HajIbniAl-Marhum 5outof6 SultanSalahuddinAbdulAzizShahAl-Haj(Deputy Chairman)TanSriDato’(Dr)IrChanAhChye@ChanChongYoon 6outof6Dato’KamaruddinBinMatDesa 5outof6ChuaKimLan 6outof6LoyBoonChen 6outof6LeeSweeSeng 6outof6WinstonMahYatKong(appointedon22January2009) 1outof1DatukAbRaufBinYusoh(resignedon22January2009) 3outof5

(ii) Board Composition

TheBoardofTalamcurrentlyhaseight (8)memberscomprising two(2)ExecutiveDirectors, four (4)IndependentNon-ExecutiveDirectors(includingtheChairmanandDeputyChairman)andtwo(2)Non-IndependentNon-ExecutiveDirectors.

TherolesoftheChairmanandExecutiveDirectorsaresegregatedtoensurethatthereisabalanceof

powerandauthority.MrTsenKengYamistheChairmanoftheBoardwhileMsChuaKimLanandMrLoyBoonChenareExecutiveDirectors.TheChairmanisresponsiblefortheorderlyconductandworkingoftheBoardandensuresthatallDirectorsreceivesufficientrelevantinformationonfinancialandnon-financialmatterstoenablethemtoparticipateactivelyinBoarddecisionswhilsttheExecutiveDirectorsareresponsiblefortheday-to-daymanagementofthebusinessandimplementationofBoarddecisionsandthedecisionsoftheExecutiveCommittee.

Thesix(6)Non-ExecutiveDirectorsprovidethenecessarybalanceofpowerandauthoritytotheBoardwithamixofindustry-specificknowledgeandbroadbusinessandcommercialexperience.Theyensurethatallproposalsbymanagementarefullydeliberatedandexamined,takingintoaccounttheinterestofshareholdersandstakeholders.

ANNUAL REPORT 2009

(cont’d) 1�


TheBoardalsorecognizesthepivotalroleoftheindependentdirectorsincorporateaccountabilityastheyprovideunbiasedandindependentviews,adviceandjudgment.TheChairman/IndependentNon-ExecutiveDirector,MrTsenKengYam,hasbeenidentifiedastheSeniorIndependentNon-ExecutiveDirectortowhomconcernsrelatingtotheCompanymaybeconveyed.

TheprofileofeachDirectorissetoutonpages5to8ofthisAnnualReport.

(iii) Supply of Information

AlltheDirectorsarenotifiedabouttheBoardmeetingsscheduledbytheCompanySecretarybeforethemeetings.TheBoardpaperstogetherwiththeagendaarecirculatedtoall theDirectors insufficienttimepriortotheBoardmeetingstoenabletheDirectorstoreviewandconsidertheagendaitemstobediscussedatthemeetingandwherenecessary,toobtainfurtherexplanationssotheycanbefullybriefedbeforethemeeting.TheBoardpapersincludereportsontheGroup’sstrategic,financial,operational,corporatedevelopmentsandregulatorycompliancematters.

Indischargingtheirduties,theDirectorshaveaccesstoallinformationwithintheCompanyandtotheadviceandservicesoftheCompanySecretary.Ifnecessary,theDirectorsareentitledtoseekindependentprofessionaladvicefromexternalconsultantsattheCompany’sexpense.AnysuchrequestispresentedtotheBoardforapproval.

Seniormanagementstaffaswellasadvisersandprofessionalsareappointedtoadviseoncorporateproposals,maybeinvitedtoattendBoardmeetingstoprovidetheBoardwiththeirviewsandexplanationsoncertainagendaitemstabledtotheBoard,andtostatetheirclarificationonissuesthatmayberaisedbytheDirectors.

(iv) Board Committees

TheBoardhasdelegatedcertainfunctionstotheseveralBoardCommitteeswhichoperatewithintheapprovedTermsofReference.TheseCommitteeshaveauthority,inter-alia,toexamineparticularissuesandreportbacktotheBoardwiththeirrecommendations.Theultimateresponsibilityforthefinaldecisiononallmatters,however,lieswiththeentireBoard.

ThevariousBoardCommitteesinTalamareasfollows:-

1. Executive Committee

TheExecutiveCommitteewasestablishedon27September2007anditsmembershipconsistsofExecutiveDirectorsandseniormanagementpersonneloftheGroup.TheExecutiveCommitteemeetsmonthly,wherepossible,toreviewtheperformanceoftheGroup’soperatingdivisions.Asatthedateofthisstatement,theExecutiveCommitteecomprisesthefollowingmembers:-

Members Designation

MrLoyBoonChen(Chairman) ExecutiveDirectorMsChuaKimLan ExecutiveDirectorMrChewKokHing ConsultantMrTanBakHai SeniorVicePresidentIMrYeohPhoiChoon SeniorVicePresidentII

1� (cont’d)

ThetermsofreferenceoftheExecutiveCommitteeinclude,amongstothers,thefollowing:-

(i) reviewandapprovethebudgetandcashflowprojectionspreparedbytheGroup’sstrategicbusinessunitsaswellasitsperformance;

(ii) decideonall transactionsandmattersrelatingtotheGroup’scorebusiness/investmentswithintherestrictedlimitsofauthoritydeterminedbytheBoard;

(iii) decideonallmattersrelatingtobankingfacilitiesasmayberequiredfortheconductoftheGroup’soperations;

(iv) reviewandrecommendnewinvestments/landbankacquisitionsbeforetablingtotheinternalauditcommitteeandrecommendingtotheBoardforapproval;

(v) assisttheBoardinensuringtheeffectivenessoftheGroup’scorebusinessesinaccordancetothecorporateobjective,strategies,policiesandbusinessdirectionapprovedbytheBoard;and

(vi) formulatestrategiesonanon-goingbasisandaddressingissuesarisingfromchangesinbothexternalbusinessenvironmentand internaloperatingconditionsof thestrategicbusinessunits.

Duringthefinancialyear,ten(10)ExecutiveCommitteemeetingswereheld.

2. Audit Committee

TheAuditCommitteewasestablishedon24February1994andiscurrentlychairedbyMrTsenKengYam.OthermembersoftheAuditCommitteeareY.A.M.TengkuSulaimanShahAl-HajIbniAl-MarhumSultanSalahuddinAbdulAzizShahAl-HajandDato’KamaruddinBinMatDesa.

ThetermsofreferenceandactivitiesoftheAuditCommitteeduringthefinancialyeararesetoutundertheAuditCommitteeReportonpages30to34ofthisAnnualReport.

3. Nomination Committee

TheNominationCommitteeandRemunerationCommitteewereestablishedon27September2001and22December2000respectivelyandweresubsequentlycombinedandrenamedasNomination&RemunerationCommitteeon27September2007.

On22January2009,theNomination&RemunerationCommitteewasseparatedintotwoseparatecommittees,namely,NominationCommitteeandRemunerationCommitteerespectively.

Asatthedateofthisstatement,theNominationCommitteecomprisesthree(3)Non-ExecutiveDirectorsoutofwhichtwo(2)areIndependentDirectorsandthemembersareasfollows:-

Members Designation

Y.A.M.TengkuSulaimanShahAl-Haj DeputyChairman/ IbniAl-MarhumSultanSalahuddin IndependentNon-ExecutiveDirector AbdulAzizShahAl-Haj(Chairman)

TanSriDato’(Dr)IrChanAhChye@ Non-IndependentNon-ExecutiveDirector ChanChongYoon

Dato’KamaruddinBinMatDesa IndependentNon-ExecutiveDirector


ANNUAL REPORT 2009

(cont’d) 1�

ThetermsofreferenceoftheNominationCommitteeinclude,amongstothers,thefollowing:-

(i) recommendtotheBoard,candidatesforalldirectorshipstobefilledbytheshareholdersortheBoard;

(ii) recommendtotheBoard,directorstofilltheseatsonBoardcommittees;

(iii) reviewtherequiredmixofskillsandexperienceandotherqualities,includingcorecompetencieswhichnon-executivedirectorsshouldbringtotheBoardonanannualbasis;and

(iv) assesstheeffectivenessoftheBoardasawhole,thecommitteesoftheBoard,andcontributionofeachindividualdirector,includingindependentnon-executivedirectors,aswellasthechiefexecutiveofficeronanannualbasis.

BeforetheNominationCommitteeandRemunerationCommitteewereseparated,theNomination&RemunerationCommitteehadtwo(2)meetingsduringthefinancialyear.

4. Remuneration Committee

Asatthedateofthisstatement,theRemunerationCommitteecomprisesthree(3)Non-ExecutiveDirectorsoutofwhichtwo(2)areIndependentDirectorsandthemembersareasfollows:-

Members Designation

Y.A.M.TengkuSulaimanShahAl-Haj DeputyChairman/ IbniAl-MarhumSultanSalahuddin IndependentNon-ExecutiveDirector AbdulAzizShahAl-Haj(Chairman)

LeeSweeSeng Non-IndependentNon-ExecutiveDirector

WinstonMahYatKong IndependentNon-ExecutiveDirector

ThetermsofreferenceoftheRemunerationCommitteeinclude,amongstothers,thefollowing:-

(i) recommendtotheBoardtherewardframeworkforallexecutivedirectorsandperformanon-goingreviewofexecutivedirectors’remunerationstructure;

(ii) recommend to theBoardchanges in remuneration if requiredor in theevent thepresentstructureandremunerationpolicyaredeemedinappropriate.

(iii) theremunerationofthenon-executivedirectorsaretobedeterminedbytheBoardandnot

theRemunerationCommittee.

BeforetheNominationCommitteeandRemunerationCommitteewereseparated,theNomination&RemunerationCommitteehadtwo(2)meetingsduringthefinancialyear.


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(v) Appointment to the Board

TheNominationCommitteerecommendstotheBoard,suitablecandidatesforappointmentasDirectorandtofillvacantseatsontheBoardcommitteesafterwhichtheCompanySecretaryensuresthatallappointmentsareproperlymadeandall legalandregulatorycompliancearemet.However,themaindecisionlieswiththeBoardaftertakingintoconsiderationthenominationbytheNominationCommittee.TheNominationCommitteealsoassessestheeffectivenessoftheBoardandBoardCommittees.

TheBoard,throughtheNominationCommittee,reviewsannuallytherequiredmixofskills,expertise,attributesandcorecompetenciesofitsDirectorsaswellastheBoardstructure,sizeandcomposition.

(vi) Directors’ Training

AlltheDirectorshaveattendedtheMandatoryAccreditationProgrammeprescribedbyBursaMalaysiaSecuritiesBerhad(“BursaSecurities”).TheDirectorsarealsoawareoftheirdutytoundergoappropriatetrainingfromtimetotimetoensurethattheybebetterequippedtocarryouttheirdutiesasDirectors.

Duringthefinancialyearended31January2009,theCompanyhadorganisedanin-housetrainingfortheDirectorsandSeniorManagementcoveringthefollowingareas:-

(1) CorporateGovernanceandCorporateSocialResponsibility;

(2) Transactions by Directors and Directors’ Interests in Shares, Debentures and DisclosureRequirements;and

(3) TaxRiskManagement.

TheDirectorsareprovidedwiththeopportunity,andareencouraged,toattendtrainingtokeepthemselvesupdated on relevant new legislation, financial reporting requirements, best practice and changingcommercialandotherrisks.

(vii) Re-election of Directors

AnyDirectorappointedduring theyear is requiredunder theArticlesofAssociationof theCompany(“Articles”) to retire and seek re-election by shareholders at the following Annual General Meetingimmediatelyaftertheirappointment.TheArticlesalsorequirethatone-thirdoftheDirectorsshallretirefromofficeatleastonceinthreeyearsbutshallbeeligibleforre-election.

TheelectionofeachDirectorisvotedonseparately.Toassistshareholdersintheirdecision,sufficientinformation, suchaspersonal profile,meetings’ attendanceand the shareholdingsof eachDirectorstandingforre-election,arefurnishedintheAnnualReport.


ANNUAL REPORT 2009

(cont’d) �1

(B) DIRECTORS’ REMUNERATION

ThedetailsoftheDirectors’remunerationduringthefinancialyearended31January2009areasfollows:-

Defined Other Fees Salaries Contribution Emoluments TotalCategory (RM’000) (RM’000) (RM’000) (RM’000) (RM’000)

ExecutiveDirectors 58 569 68 311 1,006Non-ExecutiveDirectors 108 - - 302 410

ThenumberofDirectorswhosetotalremunerationduringthefinancialyearfallwithinthefollowingbands:-

Remuneration (RM) Number of Directors Executive Non-Executive

Lessthan50,000 – 150,001–100,000 – 5300,001–350,000 2 –350,001–400,000 1 –

(C) RELATIONSHIP wITH SHAREHOLDERS AND INvESTORS

TheGrouprecognisestheimportanceofkeepingshareholdersandinvestorsinformedoftheGroup’sperformanceandmajordevelopments.Such information isdisseminatedvia thedistributionofannual reports, relevantcirculars,disclosureofmaterialinformationbywayofannouncementsandissuanceofquarterlyfinancialresultsoftheGrouptoBursaSecuritiesandthepublicaswellasthroughpressconferences.

TheAGMistheprincipalforumfordialoguewithshareholderswhereopportunitiesaregiventothemtoraisequestionsandseekclarificationspertainingtotheoperationandfinancialperformanceoftheGroup.MembersoftheBoardaswellastheAuditorsoftheCompanyarepresenttoprovideresponsestoquestionsfromtheshareholdersduringthesemeetings.

Eachitemofspecialbusinessincludedinthenoticeofthemeetingwillbeaccompaniedbyanexplanatorystatementontheproposedresolution.

(D) ACCOUNTABILITY AND AUDIT

(i) Financial Reporting

TheBoard,inpresentingtheannualauditedfinancialstatements,aimstopresentabalancedandrationalassessmentoftheGroup’spositionandprospects.TheBoardisalsoresponsibleforensuringthatthefinancialstatementspreparedaredrawnupinaccordancewiththeprovisionsoftheCompaniesAct,1965andtheapplicableapprovedaccountingstandardsinMalaysia.

The quarterly financial results and annual audited financial statements were reviewed by the AuditCommitteeandapprovedbytheBoardbeforebeingreleasedtoBursaSecurities.Thedetailsof theCompanyandtheGroup’sfinancialstatementsforthefinancialyearended31January2009canbefoundfrompages35to132ofthisAnnualReport.


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(ii) Statement of Directors’ Responsibility in relation to the Financial Statements

TheBoardisrequiredbytheCompaniesAct,1965(“theAct”)topreparethefinancialstatementsforeachfinancialyear,whichgiveatrueandfairviewofthestateofaffairsoftheCompanyandtheGroupandoftheirresultsandcashflowforthatperiod.

AsrequiredbytheActandtheListingRequirementsofBursaSecurities,thefinancialstatementshavebeenpreparedinaccordancewiththeapprovedaccountingstandardsinMalaysiaandwiththeprovisionsoftheAct.

Inpreparingthefinancialstatementsforthefinancialyearended31January2009,theGrouphasusedappropriateaccountingpolicies,consistentlyappliedandsupportedbyreasonableandprudentjudgementsandestimates.

TheDirectorshave responsibility forensuring that theCompanyand theGroupmaintainaccountingrecords,whichdisclose,withreasonableaccuracy,thefinancialpositionoftheCompanyandtheGroupandwhichenablethemtoensurethatthefinancialstatementscomplywiththeAct.TheDirectorshavegeneralresponsibilitiesfortakingsuchstepsasarereasonablyavailabletothemtosafeguardtheassetsoftheGroupandtopreventanddetectfraudandotherirregularities.

(iii) Internal Control

TheBoardacknowledgesthatitisresponsibleformaintainingasoundsystemofinternalcontrolwhichprovidesreasonableassessmentofeffectiveandefficientoperations, internalfinancialcontrols,andcompliancewithlawsandregulationsaswellaswithinternalproceduresandguidelines.

AStatementonInternalControloftheGroupissetoutonpages28and29ofthisAnnualReport.

(iv) Relationship with the External Auditors

TheBoard,throughtheAuditCommittee,maintainsacloseandtransparentprofessionalrelationshipwithitsauditorsinseekingprofessionaladviceandensuringcompliancewiththeaccountingstandardsinMalaysia.TheroleoftheAuditCommitteeinrelationtotheexternalauditorsissetoutonpages30to34ofthisAnnualReport.

(E) CORPORATE SOCIAL RESPONSIBILITY (CSR)

Asaresponsiblecorporatecitizen,theGroupwillcontinuouslyensurethatallpertinentactivitiesrelatingtocorporatesocialresponsibilityareconsideredandsupportedinitsoperationsforthewellbeingofstakeholders,communityandenvironment.

OuremployeesaretheheartoftheGroupandthekeytothecompetitivesuccessinthemarketplace.Asapolicy,wedonotdiscriminateagainstanyrace,gender,ageandminorities.Theemployeesarealsoprovidedadequatemedicalbenefitsaswellashospitalisationandpersonalaccidentinsurancecoverage.Webelievethatemployees’involvementisvitaltothesuccessoftheGroup.

Aspartofeffortstowardsthepreservationofenvironment,theGroupwouldensuretherearesufficientmeasuresatallconstructionsitestopreventanyadverseimpactontheenvironment.

ThisStatement ismade inaccordancewith theresolutionapprovedby theBoardofDirectorson18June2009.


ANNUAL REPORT 2009

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ADDITIONAL COMPLIANCE INFORMATIONas at 31 January 2009

1. UTILISATION OF PROCEEDS

TheCompanydidnotraisefundsthroughanycorporateproposalduringthefinancialyearended31January2009.

2. SHARES BUY-BACK

Therewerenosharesbuy-backbytheCompanyduringthefinancialyear.

3. IMPOSITION OF SANCTIONS AND/OR PENALTIES

There were no sanctions and/or penalties imposed on the Company or its subsidiaries, or Directors ormanagementbytherelevantregulatorybodiesduringthefinancialyear.

4. NON-AUDIT FEES

Duringthefinancialyear,theCompanydidnotincuranynon-auditfeesforservicesrenderedtotheCompanybytheCompany’sauditors.

5. vARIATION IN RESULTS

Therewerenomaterialvariancesbetweentheauditedresultsforthefinancialyearended31January2009andtheunauditedresultsforthequarterended31January2009oftheGroup.

6. MATERIAL CONTRACTS

TherewerenomaterialcontractsenteredintobytheCompanyanditssubsidiariesinvolvingDirectors’andmajorshareholders’interests,whichwerestillsubsistingasattheendofthefinancialyear.

7. MATERIAL CONTRACTS RELATING TO LOANS

Savedasdisclosedbelow,therewerenoothermaterialcontractsrelatingtoloansenteredintobytheCompanyanditssubsidiariesinvolvingDirectors’andmajorshareholders’interestswhichwerestillsubsistingasattheendofthefinancialyear:-

On 23 April 2008, the Company provided a proportionate corporate guarantee (“Proportionate CorporateGuarantee”)totheextentofRM68.00millionattributabletotheprincipalsuminfavourofBankMuamalatMalaysiaBerhad(“BankMuamalat”)inrelationtotheRM136.00millionCreditFacilitiescomprisingofAl-BaiBithamanAjilFacilityofuptothelimitofRM68.00million(“BBA”)andAl-IstisnaFacility(“Al-Istisna”)ofuptothelimitofRM68.00million(BBAandAl-Istisnaarehereincollectivelyknownas“CreditFacilities”)grantedtoCekapTropikalSdnBhd(“CekapTropikal”),a50%associatecompanyofTalamviaitssubsidiary,MutualProsperousSdnBhdanda50%associatecompanyofIJMCorporationBerhad(“IJM”)viaitswholly-ownedsubsidiary,IJMPropertiesSdnBhd(“IJMP”).

ThesellingpriceofBBAisRM112,879,999-76andAl-IstisnaisRM97,919,999-84whichiscalculatedbasedon11.0%p.a.profitmarginandtheeffectiverateisat2.0%p.a.aboveMuamalatReferenceRateontheamountdisbursed/outstandingprovidedalwaysthattheeffectiveprofitratedoesnotexceedtheinitialprofitrateof11.0%p.a.

ThetenureforBBAisuptoamaximumperiodofseventytwo(72)monthswhileforAl-Istisnaisuptoamaximumperiodoffortyeight(48)months,bothcommencingfromthedateofthefirstdisbursementsubjecttoannualrevieworperiodicrenewalbyBankMuamalat.

ThepurposeofBBAandAl-Istisnaistofinancethecostoflandacquisitionandprovidebridgingfinancefortheprojectdevelopment.

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8. OPTIONS, wARRANTS OR CONvERTIBLE SECURITIES

Duringthefinancialyear,143,962,7465-Year5%IrredeemableConvertiblePreferenceSharesofRM0.10eachhavebeenconvertedinto14,396,274OrdinarySharesofRM1.00each.

9. RECURRENT RELATED PARTY TRANSACTIONS OF A REvENUE OR TRADING NATURE

Detailsof the recurrent relatedparty transactionsmadeduring thefinancial yearended31January2009pursuanttotheshareholders’mandateobtainedbytheCompanyattheAnnualGeneralMeetingheldon29July2008areasfollows:-

Nature of transactions undertaken by Talam AmountCorporation Berhad (“TALAM”) Transacting Transacted Interestedand/or its subsidiaries Company (RM) Related Party

(A) Construction Contract Costs charged by IjM Construction Sdn Bhd (“IjM Construction”)

MaxisegarSdnBhd IJMConstruction 97,562,295.21 KEURO&IJM (Notes3and5)

EuroplusCorporation IJMConstruction 2,357,381.52 KEURO&IJM SdnBhd (Notes3and5)

KenshineCorporation IJMConstruction 18,988,064.38 KEURO&IJM SdnBhd (Notes3and5)

UkayLandSdnBhd IJMConstruction 48,756,763.10 KEURO&IJM (Notes3and5)

SentosaRestu(M) IJMConstruction 38,737,255.90 KEURO&IJM SdnBhd (Notes3and5)

(B) Rental of Office Premises at Menara Maxisegar, jalan Pandan Indah 4/2, Pandan Indah, 55100 Kuala Lumpur by Abra Development Sdn Bhd (“Abra”)

Abra Agrocon(M) 64,101.24 TSDCAC&PSDTNC SdnBhd (Notes1and2)

Abra KEBBuilders 1,387,623.60 TSDCAC,PSDTNC& KEURO(Notes1and3)

Abra KonsortiumLPB 860,376.37 TSDCAC,PSDTNC& SdnBhd KEURO(Notes1and3)

(C) Provision of Leasing Facilities by KEURO Leasing Sdn Bhd (“KEURO Leasing”)

TALAM KEUROLeasing 9,801,957.10 TSDCAC,PSDTNC& KEURO(Notes1and3)

ANNUAL REPORT 2009

(cont’d) ��


Nature of transactions Amountundertaken by TALAM Transacting Transacted Interestedand/or its subsidiaries Company (RM) Related Party

(D) Provision of Financing Facilities by Pengurusan Projek Bersistem Sdn Bhd (“PPBSB”)

L.C.B.Management PPBSB 972,265.15 TSDCAC&PSDTNC SdnBhd (Note1and6)

MutualProsperous PPBSB 1,417,169.96 TSDCAC&PSDTNC SdnBhd (Note1and6)

(E) Interest charged by Kumpulan Europlus Berhad (“KEURO”)

TALAM KEURO 4,872,631.72 TSDCAC,PSDTNC& KEURO(Notes1and3)

Abra KEURO 6,472.34 TSDCAC,PSDTNC& KEURO(Notes1and3)

BukitBeruntung KEURO 1,111.20 TSDCAC,PSDTNC& NurseriesSdnBhd KEURO(Notes1and3)

CekapMesra KEURO 38,312.28 TSDCAC,PSDTNC, DevelopmentSdnBhd CheeHengTong& KEURO (Notes1,3and4)

EuroplusBerhad KEURO 2,328,944.38 TSDCAC,PSDTNC& KEURO(Notes1and3)

EuroplusCorporation KEURO 615.42 TSDCAC,PSDTNC& SdnBhd KEURO(Notes1and3)

ExpandFactorSdnBhd KEURO 115,180.95 TSDCAC,PSDTNC& KEURO(Notes1and3)

GalianJutaSdnBhd KEURO 489,836.83 TSDCAC,PSDTNC& KEURO(Notes1and3)

IntiJohanSdnBhd KEURO 89,237.35 TSDCAC,PSDTNC& KEURO(Notes1and3)

KenshineCorporation KEURO 260,316.54 TSDCAC,PSDTNC& SdnBhd KEURO(Notes1and3)

L.C.B.Management KEURO 233,608.83 TSDCAC,PSDTNC& SdnBhd KEURO(Notes1and3)

LestariPuchong KEURO 338,397.85 TSDCAC,PSDTNC& SdnBhd KEURO(Notes1and3)

MaxisegarSdnBhd KEURO 978,681.60 TSDCAC,PSDTNC& KEURO(Notes1and3)

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(E) Interest charged by Kumpulan Europlus Berhad (“KEURO”) (Cont’d)

PandanIndahMedical KEURO 40,097.82 TSDCAC,PSDTNC& ManagementSdnBhd KEURO(Notes1and3)

TalamIndustries KEURO 7.68 TSDCAC,PSDTNC& SdnBhd KEURO(Notes1and3)

TCBResources KEURO 2,672,470.20 TSDCAC,PSDTNC& SdnBhd KEURO(Notes1and3)

TerangTanahSdnBhd KEURO 240,000.00 TSDCAC,PSDTNC& KEURO(Notes1and3)

UkayLandSdnBhd KEURO 1,763,373.97 TSDCAC,PSDTNC& KEURO(Notes1and3)

(F) Interest charged by Cekap Tropikal Sdn Bhd

MutualProsperous CekapTropikal 670,997.62 TSDCAC,PSDTNC, SdnBhd SdnBhd KEURO&IJM (Notes1,3and5)

(G) Interest charged by Good Debut Sdn Bhd

G.L.Development GoodDebut 320,726.15 TSDCAC,PSDTNC, SdnBhd SdnBhd KEURO&IJM (Notes1,3and5)

(H) Interest charged by Sierra Ukay Sdn Bhd

TerangTanahSdnBhd SierraUkay 543,358.31 TSDCAC,PSDTNC, SdnBhd KEURO&IJM (Notes1,3and5)

(I) Provision of Management Services by Europlus Berhad

EuroplusBerhad VenueVenture 600,000.00 TSDCAC&PSDTNC SdnBhd (Notes1and7)

(j) Provision of Management Services by TCB Resources Sdn Bhd

TCBResourcesSdnBhd RadiantPillar 6,000,000.00 TSDCAC,PSDTNC, SdnBhd KEURO&IJM (Notes1,3and5)

ANNUAL REPORT 2009

(cont’d) ��



(K) Rental of Equipment by TCB Resources Sdn Bhd

TCBResourcesSdnBhd KEBManagement 7,770.00 TSDCAC,PSDTNC& SdnBhd KEURO(Notes1and3)

(L) Maintenance Charges charged by TCB Resources Sdn Bhd

TCBResourcesSdnBhd KEBManagement 7,935.00 TSDCAC,PSDTNC& SdnBhd KEURO(Notes1and3)

(M) Construction Contract Costs charged by KEB Builders Sdn Bhd (“KEB Builders”)

MaxisegarSdnBhd KEBBuilders 58,521.45 TSDCAC,PSDTNC& KEURO(Notes1and3)

GalianJutaSdnBhd KEBBuilders 203,049.68 TSDCAC,PSDTNC& KEURO(Notes1and3)

NOTES:

1. Tan Sri Dato’ (Dr) Ir Chan Ah Chye @ Chan Chong Yoon (“TSDCAC”) is a Director of TALAM. TSDCAC and Puan Sri Datin Thong Nyok Choo (“PSDTNC”), the spouse of TSDCAC are the Major Shareholders of Talam. As at 31 January 2009, TSDCAC and PSDTNC have direct and deemed equity interest of 51.72% in TALAM. TSDCAC and PSDTNC are deemed interested in the shares of all subsidiary companies of TALAM to the extent TALAM has an interest.

2. TSDCAC is the brother of Chan Keat Wan, a Director and Major Shareholder of Agrocon (M) Sdn Bhd.

3. TSDCAC and PSDTNC are Directors and Major Shareholders of Kumpulan Europlus Berhad (“KEURO”) which owns 41.98% equity interest in TALAM as at 31 January 2009.

4. Mr Chee Heng Tong is a Director of KEURO and a Major Shareholder of Cekap Mesra Development Sdn Bhd.

5. IJM Corporation Berhad holds 25% equity interest in KEURO.

6. PSDTNC is a Director of Pengurusan Projek Bersistem Sdn Bhd (“PPBSB”). TSDCAC and PSDTNC have direct and deemed interest in PPBSB.

7. TSDCAC and PSDTNC have direct and indirect equity interest in Venue Venture Sdn Bhd for the past 6 months.

��

TheBoardofDirectorsispleasedtoprovidethefollowingstatementwhichoutlinesthekeyelementsoftheinternalcontrolsystemwithintheGroupforthecurrentfinancialyear.

RESPONSIBILITY

TheBoardrecognisesitsresponsibilityfortheGroup’ssystemofinternalcontrolsandforreviewingitsadequacyandintegrity.Thesystemofinternalcontrolsisdesignedtomanage,ratherthaneliminate,theriskoffailuretoachievethebusinessobjectivesoftheGroup.Inpursuingtheseobjectives,internalcontrolscanonlyprovidereasonableandnotabsoluteassuranceagainstmaterialmisstatementorloss.ThesystemofinternalcontrolshasbeenregularlyreviewedbytheBoardwhichincorporates,interalia,riskmanagement,financial,operationalandcompliancecontrolsaswellasthegovernanceprocess.

RISK MANAGEMENT FRAMEwORK

TheBoardhasestablishedanorganisationalstructurewithclearlydefined linesofaccountabilityanddelegatedauthority.IthasextendedtheresponsibilitiesoftheAuditCommitteetoincludetheworkofmonitoringallinternalcontrolonitsbehalf,withtheassistanceoftheinternalauditfunction.

TheGrouphasputinplaceaRiskManagementCommittee(“RMC”),whichischairedbyoneoftheGroup’sExecutiveDirectorandincludesrepresentativesfromallthedivisions.Eachbusinessdivision’sriskmanagementfunctionisledbytherespectiveheadofthedivision.TheRMCistaskedtodevelopandmaintainaneffectiveriskmanagementsystemintheGroup.Thereisanongoingprocessforidentifying,evaluatingandmanagingsignificantriskfacedbytheCompanyandthisprocesshasbeeninplacefortheyearunderreview.TheRMCreviewscovermatterssuchasresponsestosignificantrisksidentified,changestointernalcontrolsystemandoutputfrommonitoringprocesses.ItreportstotheAuditCommittee,whichdedicatesseparatetimefordiscussionofthissubject.

INTERNAL AUDIT FUNCTION

TheGroup’sInternalAuditDepartmentreportsindependentlytotheAuditCommittee.TheAuditCommitteereviewsandapprovestheinternalauditplan,whichwasdevelopedandbasedonthefinalisedkeyriskprofileoftheGroup,onanannualbasis.TheInternalAuditDepartmentprovidedreportsonkeyfindingsandprogressofareasauditedtotheAuditCommitteeonaquarterlybasis.

Allrecommendationsproposedinimprovingtheinternalcontrolswereconsideredandappropriatecorrectivemeasureshavebeenimplementedbythemanagementtorectifytheshortcomingsandpreventfurtherrecurrenceofissuesandfindingshighlighted.Alltheinternalcontrolsinstitutedwereapplicableandintact

OTHER KEY ELEMENTS OF INTERNAL CONTROLS

OtherkeyelementsoftheGroup’ssystemofinternalcontrolsare:-

• theGroup’sinternalauditfunctionperformsregularreviewsofbusinessprocessestoassesstheeffectivenessofinternalcontrolsandreportsaremaderegularlytotheAuditCommittee.

• operationalorganisationstructurewithdefinedlinesofresponsibilitiesanddelegationofauthority.Aprocessof hierarchical reporting has been established, which provides for a documented and auditable trail ofaccountability.

STATEMENT ON INTERNAL CONTROL

ANNUAL REPORT 2009

(cont’d) ��

• managementreports,whicharepresentedbytherespectivedivisionheadtotheBoardeachquarter,providesfinancialinformation,includingkeyperformanceindicatorsandinformationofsignificantchangesinaccountingstandardsandreporting.

• periodicExecutiveCommitteemeetingsconvenedtodiscusstheGroup’soperationsandperformance.Themeetings enable the regular monitoring of results against budget, with significant variance explained andappropriateactiontaken.

• definedlimitsofauthorityforvarioustransactions,includingpurchasingandpayments.

• StandingInstructionsandStandardOperatingProceduresofalldepartmentsareregularlyreviewedandup-datedtoensureeffectivemanagementoftheGroup’soperations.

• MonitoringoffinancialresultsbytheAuditCommitteeandtheBoardeveryquarter.

TheBoardandthemanagementcontinuetotakemeasurestostrengthentheinternalcontrolenvironmenttosafeguardshareholders’investmentandtheGroup’sassets.

ThisStatementismadeinaccordancewiththeresolutionapprovedbytheBoardofDirectorson18June2009.

STATEMENT ON INTERNAL CONTROL

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COMPOSITION

Members of the Committee Designation

1. TsenKengYam(Chairman) IndependentNon-ExecutiveDirector (MemberoftheMalaysianInstituteofAccountants)

2. Y.A.MTengkuSulaimanShahAl-HajIbni IndependentNon-ExecutiveDirector Al-MarhumSultanSalahuddinAbdulAziz ShahAl-Haj

3. Dato’KamaruddinBinMatDesa IndependentNon-ExecutiveDirector

TERMS OF REFERENCE

ThefollowingtermsofreferenceoftheAuditCommitteehavebeenadopted.

Constitution

TheAuditCommitteewasestablishedbytheBoardofDirectorson24February,1994.

Membership

TheCommitteeshallbeappointedbytheBoardofDirectorsfromamongsttheirnumbersandshallconsistofnotlessthan3members,ofwhomamajorityshallbeindependentdirectors.AnindependentdirectorshallbeonewhofulfilstherequirementasprovidedintheListingRequirementsofBursaMalaysiaSecuritiesBerhad.

AtleastonememberoftheAuditCommitteemustbeamemberoftheMalaysianInstituteofAccountants,orifheisnotamemberoftheMalaysianInstituteofAccountants,hemusthave:-

(i) atleast3years’workingexperienceandpassedtheexaminationsspecifiedinPart1ofthe1stScheduleoftheAccountantsAct1967;or

(ii) atleast3years’workingexperienceandisamemberofoneoftheassociationsofaccountsspecifiedinPart11ofthe1stScheduleoftheAccountantsAct1967;or

(iii) adegree/masters/doctorateinaccountingorfinanceandatleast3years’postqualificationexperienceinaccountingorfinance;or

(iv) at least7years’experiencebeingachieffinancialofficerofacorporation,orhavingthefunctionofbeingprimarilyresponsibleforthemanagementofthefinancialaffairsofacorporation.

ThemembersoftheAuditCommitteeshallelectaChairmanfromamongsttheirnumber,whoshallbeanindependentdirector.IfamemberoftheAuditCommitteeresigns,diesorforanyotherreasonceasestobeamemberwiththeresultthatthenumberofmembersisreducedtobelow3,theBoardofDirectorsshall,within3monthsofthatevent,appointsuchnumberofnewmembersasmayberequiredtomakeuptheminimumnumberof3members.

NoalternatedirectorcanbeappointedasamemberoftheAuditCommittee.

AUDIT COMMITTEE REPORT

ANNUAL REPORT 2009

(cont’d) �1

Authority

TheAuditCommitteeisgrantedtheauthoritytoinvestigateanyactivityofitsCompanyanditssubsidiarieswithinitstermsofreference.Inparticular,theAuditCommitteehastheauthorityto:-

(i) haveaccesstoadequateresources,whicharerequiredtoperformitsduties;

(ii) havefullandunrestrictedaccesstoanyinformation,includinganyinformationitrequiresfromanyemployee,andallemployeesaredirectedtoco-operatewithanyrequestmadebytheAuditCommittee;

(iii) beabletoobtainindependentprofessionalorotheradvice;and

(iv) havedirectcommunicationchannelswiththeexternalandinternalauditors.

Meetings and Reporting Procedures

TheAuditCommitteewillmeetatleastfour(4)timesayear.Aquorumforameetingshallbetwomembers,bothbeingindependentdirectors.Atleasttwiceayear,theAuditCommitteeshallmeetwiththeexternalauditorswithoutanyexecutivedirectorsbeingpresent.Theexternalauditormayrequestforameeting,iftheyconsidernecessary.

The directors and employees will attend any particular Audit Committee meeting only at the Audit Committee’sinvitation,specifictotherelevantmeeting.

TheCompanySecretaryshallbethesecretaryoftheAuditCommittee.Minutesofthemeetingshallbedulyenteredinthebooksprovidedtherefore.TheminuteswillbecirculatedtoallmembersoftheBoardofDirectorsandshallbepresentedattheBoardofDirectors’meeting.

Duties and Functions

ThedutiesandfunctionsoftheAuditCommitteeshallbe:-

(i) Toconsider theappointmentof theexternalauditor, theaudit feeandanyquestionsof the resignationordismissaloftheexternalauditorbeforemakingarecommendationtotheBoardofDirectors;

(ii) Todiscusswithexternalauditorsbeforetheauditcommences,theauditplan,thenatureandscopeoftheauditandensureco-ordinationwheremorethanoneauditfirmisinvolved;

(iii) Toreviewthequarterlyresultsandyear-endfinancialstatementspriortotheapprovalbytheBoard,focusingparticularlyon:

(a) Anychangesintheaccountingpoliciesandpractices;

(b) Significantandunusualevents;

(c) Thegoingconcernassumption;

(d) Compliancewithaccountingstandards,stockexchangeandlegalrequirements;

(iv) ToreviewanyrelatedpartytransactionandconflictofinterestsituationthatmayariseintheCompany,includinganytransaction,procedureorcourseofconductthatraisesquestionofmanagementintegrity;

(v) Todiscussproblemsandreservationsarisingfromtheinterimandfinalaudits,andmatterstheauditormaywishtodiscuss(intheabsenceofmanagementwherenecessary);


�� (cont’d)

(vi) Inrelationtointernalauditfunction:-

(a) toreviewtheadequacyofthescope,functions,competencyandresourcesoftheinternalauditfunctionthatithasthenecessaryauthoritytocarryoutitswork;

(b) toreviewtheinternalauditprogrammeandresultsoftheinternalauditprocessand,wherenecessary,ensurethatappropriateactionsaretakenontherecommendationsoftheinternalauditfunction;

(c) toreviewanyappraisalorassessmentoftheperformanceofmembersoftheinternalauditfunction;

(d) toapproveanyappointmentorterminationofseniorstaffmembersoftheinternalauditfunction;

(e) totakecognizanceofresignationsofinternalauditstaffmembersandprovidetheresigningstaffmemberanopportunitytosubmithisreasonsforresigning;

(vii) Tokeepunderreview,theeffectivenessoftheinternalcontrolsystemandinparticularreviewtheexternalauditor’smanagementletterandmanagement’sresponse;

(viii) Toreviewtheauditreports;

(ix) ToreviewthereportsoftheRiskManagementCommittee;

(x) ToprepareperiodicreportstotheBoardofDirectors,summarisingtheworkperformedinfulfillingtheAuditCommittee’sprimaryresponsibilities;and

(xi) Toconsiderothertopics,asdefinedbytheBoardofDirectors.

ATTENDANCE AT AUDIT COMMITTEE MEETINGS

Duringthefinancialyearended31January2009,therewerefive(5)AuditCommitteemeetingsheldandthenumberofmeetingsattendedbyeachAuditCommitteememberareasfollows:

Number of Meetings attendedAudit Committee Members by Audit Committee Members

1. TsenKengYam 5outof5

2. Y.A.MTengkuSulaimanShahAl-HajIbniAl-Marhum 4outof5 SultanSalahuddinAbdulAzizShahAl-Haj

3. Dato’KamaruddinBinMatDesa 5outof5

TheHeadofFinanceand theHeadof InternalAuditwouldnormallyattendallAuditCommitteemeetingsat theinvitationoftheAuditCommittee.


ANNUAL REPORT 2009

(cont’d) ��

SUMMARY OF AUDIT COMMITTEE ACTIvITIES

Duringthefinancialyearended31January2009,theAuditCommitteecarriedoutitsdutiesinaccordancewithitstermsofreference,asfollows:-

(a) ReviewedthequarterlyfinancialresultspriortorecommendforconsiderationandapprovalbytheBoardofDirectors;

(b) Reviewedanddiscussedwiththeexternalauditorstheauditplanningmemorandumbeforecommencementoftheyearendaudit;

(c) Reviewedanddiscussedwithexternalauditors’findingsduring thecourseof their yearendauditand themanagement’sresponse;

(d) ReviewedannualfinancialstatementsandrecommendforapprovalbytheBoardofDirectors;

(e) Reviewedanddeliberatedtherecurrentrelatedpartytransactions;

(f) Reviewedandapprovedtheinternalauditplan;

(g) Reviewedanddeliberatedtheinternalauditreports;

(h) ReviewedandapprovedtheappointmentofanewActingInternalAuditHeadupontheretirementofexistingInternalAuditHeadon23February2009;

(i) ReviewedtherationaleofDeloitteKassimChan’sresignationtosatisfyitselfthatthereisnoseriousmatterofconcernleadingtotheauditor’sresignation,anddeliberatedontheappointmentofnewauditor,BakerTillyMonteiroHeng;and

(j) ReviewedtheRiskManagementCommittee’sreportsandassessment.

INTERNAL AUDIT FUNCTION

TheAuditCommitteeissupportedinitsdutiesbytheinternalauditfunction.TheCommitteeisawareofthefactthattheinternalauditfunctionisessentialtoassistinobtainingtheassuranceandconsultingservicesitrequires,regardingtheeffectivenessofthesystemofinternalcontrolintheGroup.

Theprimaryobjectiveoftheinternalauditfunctionistoreviewtheeffectivenessofthesystemofinternalcontrolandthisisperformedwithimpartiality,proficiencyanddueprofessionalcare.TheinternalauditfunctionenablestheAuditCommitteetodischargeitsdutiesbyundertakingindependentregularandsystematicreviewsofthesystemofinternalcontrol,soastoprovidereasonableassurancethatsuchsystemcontinuetooperatesatisfactorilyandeffectively.

However,duetothecontinuedreducedbusinessactivitiesintheGroup,theinternalauditactivitieswerealsoscaleddownaccordingly.Totalstaffcostincurredinrespectoftheinternalauditfunctionduringthefinancialyearended31January2009wasRM146,560.00.


�� (cont’d)


Duringthefinancialyear,thefollowingmaininternalauditactivitieswerecarriedout:-

(i) Conductedinternalauditinaccordancewiththeriskbased/driveninternalauditplan.Atotalof3routineauditswerecarriedoutduringtheyear;

(ii) ReviewedtheinternalcontrolproceduresasstipulatedintheGroup’sStandingInstructionsandStandardofOperatingProcedures.Duringthesameperiod,StandingInstructionsandStandardofOperatingProceduresofthedepartmentswerebeingjointlyreviewedandupdated,andpracticalinternalcontrolprocedureswereincorporated;

(iii) Carriedout3investigationscumspecialreviewsasrequestedbymanagementand/orAuditCommittee;

(iv) Reviewed the operations, process and governance of the following departments and made improvementrecommendations:

a. SecretarialandLegalDepartment;b. InformationTechnologyDepartment;c. Planning,AuthorityApprovalandLandMattersDepartment;and

(v) ReviewedStandingInstructionandStandardOperatingProceduresoftheInformationTechnology(“IT”)DepartmentandPlanning,AuthorityApprovalandLandMattersDepartmentandmadeimprovementrecommendation.

Allinternalauditreports,whichweredeliberatedbytheAuditCommitteeandrecommendationsmadetotheBoardand/ortheManagement,wereactedupon.

Financial Statements

36 Directors’Report

42 BalanceSheets

44 IncomeStatements

45 ConsolidatedStatement ofChangesinEquity

46 Statementof ChangesinEquity

47 Consolidated CashFlowStatement

49 CashFlowStatement

50 Notestothe FinancialStatements

129 StatementbyDirectors

129 StatutoryDeclaration

130 IndependentAuditors’Report

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DIRECTORS’ REPORT

Thedirectorsherebysubmit their report togetherwith theauditedfinancialstatementsof theGroupandof theCompanyforthefinancialyearended31January2009.

PRINCIPAL ACTIvITIES

TheprincipalactivitiesoftheCompanyduringthefinancialyearwerethatoftheprovisionofmanagementservices,investmentholdingandpropertydevelopment.TheprincipalactivitiesoftheCompany’ssubsidiariesarestatedinNote42tothefinancialstatements.

Therehavebeennosignificantchangesinthenatureoftheseprincipalactivitiesduringthefinancialyear.

RESULTS

Group Company RM’000 RM’000

Netprofitforthefinancialyear 60,715 4,277

Attributableto: EquityholdersoftheCompany 59,105 4,277 Minorityinterest 1,610 –

60,715 4,277

DIvIDEND

NodividendwaspaidordeclaredbytheCompanysincetheendofthepreviousfinancialyear.

Thedirectorsdonotrecommendthepaymentofanydividendsinrespectofthefinancialyearended31January2009.

RESERvES AND PROvISIONS

Allmaterialtransferstoandfromreservesandprovisionsduringthefinancialyearhavebeendisclosedinthefinancialstatements.

BAD AND DOUBTFUL DEBTS

BeforetheincomestatementsandbalancesheetsoftheGroupandoftheCompanyweremadeout,thedirectorstookreasonablestepstoascertainthatactionhadbeentakeninrelationtothewritingoffofbaddebtsandthemakingofallowancefordoubtfuldebts,andhadsatisfiedthemselvesthatallknownbaddebtshadbeenwrittenoffandadequateallowancehadbeenmadefordoubtfuldebts.

Atthedateofthisreport,thedirectorsarenotawareofanycircumstancesthatwouldrendertheamountwrittenoffforbaddebtsortheamountoftheallowancefordoubtfuldebtsinthefinancialstatementsoftheGroupandoftheCompanyinadequatetoanysubstantialextent.

ANNUAL REPORT 2009

(cont’d) ��

DIRECTORS’ REPORT

CURRENT ASSETS

BeforetheincomestatementsandbalancesheetsoftheGroupandoftheCompanyweremadeout,thedirectorstookreasonablestepstoensurethatanycurrentassets,otherthandebts,whichwereunlikelytoberealisedintheordinarycourseofbusiness,theirvaluesasshownintheaccountingrecordsoftheGroupandoftheCompanyhadbeenwrittendowntoanamountthattheymightbeexpectedtoberealised.

Atthedateofthisreport,thedirectorsarenotawareofanycircumstancesthatwouldrenderthevaluesattributedtothecurrentassetsinthefinancialstatementsoftheGroupandoftheCompanymisleading.

vALUATION METHODS

At the date of this report, the directors are not aware of any circumstances which have arisen which renderadherencetotheexistingmethodofvaluationofassetsorliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate.

CONTINGENT AND OTHER LIABILITIES

Atthedateofthisreport,theredoesnotexist:-

(i) anychargeontheassetsoftheGroupandoftheCompanythathasarisensincetheendofthefinancialyearwhichsecurestheliabilitiesofanyotherperson;or

(ii) anycontingentliabilitiesinrespectoftheGroupandoftheCompanythathavearisensincetheendofthefinancialyear.

Intheopinionofthedirectors,nocontingentliabilitiesorotherliabilitiesoftheGroupandoftheCompanyhavebecomeenforceable,orislikelytobecomeenforceablewithintheperiodoftwelvemonthsaftertheendofthefinancialyearwhich,willormaysubstantiallyaffecttheabilityoftheGroupandoftheCompanytomeettheirobligationsasandwhentheyfalldue.

CHANGE OF CIRCUMSTANCES

Atthedateofthisreport,thedirectorsarenotawareofanycircumstances,nototherwisedealtwithinthisreportorthefinancialstatementsoftheGroupandoftheCompanythatwouldrenderanyamountstatedinthefinancialstatementsmisleading.

ITEMS OF AN UNUSUAL NATURE

TheresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearwerenot,intheopinionofthedirectors,substantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnature,otherthanthatdisclosedinNote4(a)(iv)tothefinancialstatements.

Noitem,transactionoreventofamaterialandunusualnaturehasarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportwhichislikelytoaffectsubstantiallytheresultsoftheoperationsoftheGroupandoftheCompanyforthefinancialyearinwhichthisreportismade.

�� (cont’d)

ISSUE OF SHARES

During the financial year, the issued and paid-up ordinary share capital of the Company was increased fromRM629,183,170toRM643,579,444viatheissuanceof14,396,274newordinarysharesofRM1.00eachpursuanttotheconversionof143,962,7465-Year5%IrredeemableConvertiblePreferenceSharesofRM0.10each(“ICPS”)ataconversionpriceofRM1.00perordinaryshareofRM1.00eachintheCompany.

ThenewordinarysharesissuedduringthefinancialyearpursuanttotheconversionoftheICPSrankparipassuinallrespectswiththeexistingordinarysharesoftheCompanyexceptthattheholdersthereofshallnotbeentitledtoanydividends,rights,allotmentsand/orotherdistributionswheretheentitlementdateofwhichprecedesthedateofallotmentofthenewordinarysharesoftheCompany.

Pursuanttoacourtorderdated5December2008,theissuedandpaid-upordinarysharecapitaloftheCompanywasreducedfromRM643,579,444comprising643,579,444ordinarysharesofRM1.00eachtoRM386,147,666comprising643,579,444ordinarysharesofRM0.60eachbythecancellationofRM0.40parvaluefromeachordinaryshareinaccordancewiththeRegularisationPlanoftheCompanyasfurtherdisclosedinNote41tothefinancialstatements.

Duringthefinancialyear,theCompanydidnotissueanydebentures.

Subsequenttothefinancialyearend,on16February2009,theCompanyhadcompletedthesharesplitinvolvingthesubdivisionofeveryone(1)existingordinaryshareofRM0.60eachintheCompany(aftertheCapitalReductionasmentionedabove)intothree(3)ordinarysharesofRM0.20eachintheCompany(“ShareSplit”).AsaresultoftheShareSplit,643,579,444ordinarysharesofRM0.60eachintheCompanyhavebeensubdividedinto1,930,738,332ordinarysharesofRM0.20eachintheCompany.Concurrently,theauthorisedsharecapitaloftheCompanyhadincreased to RM2,000,000,000 divided into 8,000,000,000 ordinary shares of RM0.20 each, 1,500,000,000redeemableconvertiblepreferencesharesofRM0.20eachand1,000,000,000irredeemableconvertiblepreferencesharesofRM0.10each.

TREASURY SHARES

Duringthefinancialyear,theCompanydidnotrepurchaseanyofitsissuedordinarysharesfromtheopenmarket.Asat31January2009,theCompanyheldastreasurysharesatotalof878,600ofits643,579,444issuedordinaryshares.SuchtreasurysharesareheldatacarryingamountofRM492,848andfurtherrelevantdetailsaredisclosedinNote21.TheordinarysharesrepurchasedarebeingheldastreasurysharesinaccordancewithSection67AoftheCompaniesAct,1965.

SHARE OPTION

NooptionsweregrantedtoanypersontotakeupunissuedsharesoftheCompanyduringthefinancialyear.

DIRECTORS

ThenamesofthedirectorsoftheCompanyinofficesincethedateofthelastreportandatthedateofthisreportare:-

TsenKengYamY.A.M.TengkuSulaimanShahAl-HajIbniAl-MarhumSultanSalahuddinAbdulAzizShahAl-HajTanSriDato’(Dr.)Ir.ChanAhChye@ChanChongYoon Dato’KamaruddinbinMatDesa ChuaKimLan LoyBoonChenLeeSweeSengWinstonMahYatKong(appointed on 22.01.2009)DatukAbRaufbinYusoh(resigned on 22.01.2009)

DIRECTORS’ REPORT

ANNUAL REPORT 2009

(cont’d) ��

DIRECTORS’ INTERESTS

Accordingtotheregisterofdirectors’shareholdingskeptbytheCompanyunderSection134oftheCompaniesAct,1965,theinterestsofthosedirectorswhoheldofficeattheendofthefinancialyearinsharesintheCompanyanditsrelatedcorporationduringthefinancialyearended31January2009areasfollows:-

Number of ordinary shares of RM0.60

y

<-------------------------- of RM1.00 each --------------------------> each Balance as Bought / Balance as at 1.2.2008 Converted Sold at 31.1.2009 The Company

Direct interest

TanSriDato’(Dr.)Ir.ChanAhChye @ChanChongYoon 42,366,739 1,223,125+ – 43,589,864Y.A.M.TengkuSulaimanShahAl-Haj IbniAl-MarhumSultanSalahuddin AbdulAzizShahAl-Haj 500 – – 500ChuaKimLan 74,006 7+ – 74,013LoyBoonChen 803,300 1,000+ (500,000)β 304,300

Indirect interest

TanSriDato’(Dr.)Ir.ChanAhChye @ChanChongYoon 288,837,177 4+ – 288,837,181*ChuaKimLan 7,500 1,875+ – 9,375̂

Number of 5-Year 5% Irredeemable Convertible Preference Shares of RM0.10 each (“ICPS”)

Balance as Sold / Balance as at 1.2.2008 Bought Converted at 31.1.2009 The Company

Direct interest

TanSriDato’(Dr.)Ir.ChanAhChye @ChanChongYoon 12,231,250 – (12,231,250)+ –ChuaKimLan 65 – (65)+ –LoyBoonChen 10,000 – (10,000)+ –

Indirect interest

TanSriDato’(Dr.)Ir.ChanAhChye @ChanChongYoon 37# – (37)+ –ChuaKimLan 18,750^ – (18,750)+ –

DIRECTORS’ REPORT

�0 (cont’d)

DIRECTORS’ INTERESTS (CONT’D)

Ψ ParvaluereducedfromRM1.00toRM0.60on23January2009pursuanttothecapitalreductionundertheRegularisationPlanasdisclosedinNote41tothefinancialstatements.

+ ConversionofICPSintoordinarysharesoftheCompanyuponmaturityoftheICPSon2January2009.

β Included300,000ordinarysharesofRM0.60each.

* Deemedinterestedthroughhisspouse,PuanSriDatinThongNyokChoo,hisdaughter,ChanSiuWeiandbyvirtueofhisinterestinKumpulanEuroplusBerhad,PengurusanProjekBersistemSdn.Bhd.,SzeChoonHoldingsSdn.Bhd.andProsperousInnSdn.Bhd.pursuanttoSection6AoftheCompaniesAct,1965.

^ Deemed interested through her spouse, Chin Chee Meng pursuant to Section 6A of the Companies Act,1965.

# DeemedinterestedbyvirtueofhisinterestinSzeChoonHoldingsSdn.Bhd.pursuanttoSection6AoftheCompaniesAct,1965.

TanSriDato’(Dr.)Ir.ChanAhChye@ChanChongYoon,byvirtueofhisinterestinthesharesoftheCompany,isalsodeemedinterestedinthesharesofalltheCompany’ssubsidiariestotheextenttheCompanyhasaninterest.

Otherthanasdisclosedabove,noneoftheotherdirectorsinofficeattheendofthefinancialyearhadanyinterestinsharesintheCompanyanditsrelatedcorporationsduringthefinancialyear.

DIRECTORS’ BENEFITS

Sincetheendofthepreviousfinancialyear,nodirectoroftheCompanyhasreceivedorbecomeentitledtoreceiveabenefit(otherthanbenefitsincludedintheaggregateamountofemolumentsreceivedordueandreceivablebythedirectorsshowninthefinancialstatements)byreasonofacontractmadebytheCompanyorarelatedcorporationwiththedirectororwithafirmofwhichthedirector isamember,orwithacompanyinwhichthedirectorhasasubstantialfinancialinterest.

NeitherduringnorattheendofthefinancialyearwastheCompanyapartytoanyarrangementwhoseobjectwastoenablethedirectorstoacquirebenefitsbymeansoftheacquisitionofsharesin,ordebenturesof,theCompanyoranyotherbodycorporate.

SIGNIFICANT EvENTS

SignificanteventsthatoccurredduringandsubsequenttothefinancialyeararedisclosedinNotes43and44tothefinancialstatements.

DIRECTORS’ REPORT

ANNUAL REPORT 2009

(cont’d) �1

AUDITORS

Theauditors,MessrsBakerTillyMonteiroHeng,haveexpressedtheirwillingnesstocontinueinoffice.

OnbehalfoftheBoard,

CHUA KIM LANDirector

LOY BOON CHENDirector

KualaLumpur

Date:29May2009

DIRECTORS’ REPORT

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BALANCE SHEETSas at 31 January 2009

Group Company 2009 2008 2009 2008 Note RM’000 RM’000 RM’000 RM’000

Non-current assetsProperty,plantandequipment 5 128,194 191,177 1,477 1,699Landheldforproperty development 6(a) 1,131,204 1,129,501 18,126 18,126Investmentproperties 7 191,785 84,516 – –Prepaidleasepayments 8 10,431 11,126 – –Goodwill 9 39,208 – – –Investmentinsubsidiaries 10 – – 344,801 344,801Investmentinassociates 11 – – – –Interestinjointlycontrolled entities 12 9,218 10,077 – –Otherinvestment 13 – 76,332 – –Amountowingbysubsidiaries 10(a) – – 278,452 268,951Amountowingbyassociates 11 26,186 26,042 84 57Amountowingbyjointly controlledentities 12 183 5,874 183 5,874Sinkingfundsheldbytrustees 14 8,723 9,801 – –

Total non-current assets 1,545,132 1,544,446 643,123 639,508

Current assets Propertydevelopmentcosts 6(b) 1,192,159 1,181,547 95,617 95,617Inventories 15 68,766 74,723 5,687 5,687Tradereceivables 16 92,883 88,668 – –Otherreceivables,deposits andprepaidexpenses 17 124,189 194,832 14,574 25,516Cashandbankbalances 18 17,517 22,281 37 433

Total current assets 1,495,514 1,562,051 115,915 127,253

TOTAL ASSETS 3,040,646 3,106,497 759,038 766,761

ANNUAL REPORT 2009

(cont’d) ��

BALANCE SHEETSas at 31 January 2009


EQUITY AND LIABILITIES

Capital and Reserves Sharecapital 19 386,148 643,015 386,148 643,015Treasuryshares 21 (493) (844) (493) (844)Reserves 22 5,282 (297,711) (60,618) (321,976)

Equityattributabletoequity holdersoftheCompany 390,937 344,460 325,037 320,195Minorityinterest 3,563 1,783 – –

Total equity 394,500 346,243 325,037 320,195

Non-current liabilities Borrowings 23(b) 85,858 87,630 – 565Otherlongtermpayables 25 79,625 75,541 – –Amountowingtosubsidiaries 10 – – 280,211 283,229Amountowingtojointly controlledentities 12 46,178 35,964 – –Deferredtaxliabilities 26 4,205 3,959 – –

Total non-current liabilities 215,866 203,094 280,211 283,794

Current liabilities Provisionforliabilities 27 96,312 97,014 – –Borrowings 23(a) 666,573 729,831 76,210 88,248Tradepayables 28 288,626 241,287 2,590 2,590Otherpayables andaccruedexpenses 29 805,472 861,812 74,990 71,934Deferredprogressbillings 30 391,613 444,920 – –Currenttaxliabilities 181,684 182,296 – –

Total current liabilities 2,430,280 2,557,160 153,790 162,772

Total liabilities 2,646,146 2,760,254 434,001 446,566

TOTAL EQUITY AND LIABILITIES 3,040,646 3,106,497 759,038 766,761

Theaccompanyingnotesformanintegralpartofthesefinancialstatements.

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INCOME STATEMENTSfor the financial year ended 31 January 2009


Revenue 31 301,278 248,349 – 3,496Costofsales 32 (273,539) (224,796) – (597)

Grossprofit 27,739 23,553 – 2,899

Otherincome 164,210 149,367 32,306 1,316Administrativeandother expenses (76,944) (100,263) (7,166) (14,295)Financecosts 33 (53,573) (67,085) (20,853) (13,062)Shareofresultsofassociates 11 – – – –Shareofresultsofjointly controlledentities 12 (869) 249 – –

Profit/(Loss) before tax 34 60,563 5,821 4,287 (23,142)Incometaxcredit/(expense) 37 152 (2,273) (10) (336)

Profit/(Loss) for the financial year 60,715 3,548 4,277 (23,478)

Attributable to: EquityholdersoftheCompany 59,105 3,420 4,277 (23,478) Minorityinterest 1,610 128 – –

60,715 3,548 4,277 (23,478)

Earningspershare attributabletoequityholders oftheCompany: Basic(sen) 38 9.39 0.54

Diluted(sen) 38 9.39 0.53


ANNUAL REPORT 2009

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the financial year ended 31 January 2009

Distributable |<---- Non-Distributable Reserves ---->| Reserve Attributable Foreign to Equity Share Treasury Capital Share Exchange Accumulated Holders of Minority Total Capital Shares Reserve Premium Reserve Losses the Company Interest EquityGroup RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 (Note 19) (Note 21)

At 1 February 2007 642,423 (844) 11,201 124,551 32,414 (463,229) 346,516 14,750 361,266Foreigncurrency translation,representing netincomerecognised directlyinequity – – – – 307 – 307 100 407Profitforthe financialyear – – – – – 3,420 3,420 128 3,548Decreaseinliability componentofICPS 592 – – – – – 592 – 592Disposalofsubsidiaries – – – – (6,375) – (6,375) (13,195) (19,570)

At 31 january 2008 643,015 (844) 11,201 124,551 26,346 (459,809) 344,460 1,783 346,243Foreigncurrency translation,representing netexpenserecognised directlyinequity – – – – (13,193) – (13,193) – (13,193)Profitforthe financialyear – – – – – 59,105 59,105 1,610 60,715Capitalreduction(Note19(c)) (257,432) 351 – – – 257,081 – – –Sharepremiumreduction (Note22) – – – (124,551) – 124,551 – – –Acquisitionofsubsidiaries (Note10(b)) – – – – – – – 170 170Decreaseinliability componentofICPS 565 – – – – – 565 – 565

At 31 january 2009 386,148 (493) 11,201 – 13,153 (19,072) 390,937 3,563 394,500


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STATEMENT OF CHANGES IN EQUITYfor the financial year ended 31 January 2009

Non- Distributable Distributable Reserves Reserve Share Treasury Share Accumulated Total Capital Shares Premium Losses EquityCompany RM’000 RM’000 RM’000 RM’000 RM’000 (Note 19) (Note 21)

At 1 February 2007 642,423 (844) 124,551 (423,049) 343,081Lossforthefinancialyear – – – (23,478) (23,478)Decreaseinliability componentofICPS 592 – – – 592

At 31 january 2008 643,015 (844) 124,551 (446,527) 320,195

Profitforthefinancialyear – – – 4,277 4,277Capitalreduction (Note19(c)) (257,432) 351 – 257,081 –Sharepremiumreduction (Note22) – – (124,551) 124,551 –Decreaseinliability componentofICPS 565 – – – 565

At 31 january 2009 386,148 (493) – (60,618) 325,037


ANNUAL REPORT 2009

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CONSOLIDATED CASH FLOW STATEMENTfor the financial year ended 31 January 2009

2009 2008Group Note RM’000 RM’000

CASH FLOwS FROM OPERATING ACTIvITIES Profitforthefinancialyear 60,715 3,548Adjustmentsfor: Interestexpenses 53,573 67,085 Allowancefordoubtfuldebts 17,071 14,083 Landanddevelopmentcostswrittenoff 41 9,588 Provisionforliabilities 738 8,912 Depreciationofproperty,plantandequipment 7,602 7,586 Allowanceforwritedownininventories 1,655 7,030 Baddebtswrittenoff 409 2,704 Incometax(credit)/expenserecognisedinincomestatements (152) 2,273 Amortisationofprepaidleasepayments 695 695 Lossondisposalofproperty,plantandequipment 313 124 Depreciationofinvestmentproperties 4,102 106 Property,plantandequipmentwrittenoff – 77 Reversalofprovisionforliquidatedandascertaineddamages – (38,247) Reversalofallowancenolongerrequiredfordoubtfuldebts (2,465) (36,437) Reversalofaccruedexpenses (1,385) – Loss/(Gain)ondisposalofinvestmentproperties 233 (23,451) Gainondisposalofsubsidiaries – (18,474) Waiverofdebts (82,958) (3,700) Waiverofinterest (62,277) (2,300) Interestincome (1,701) (2,005) Reversalofallowanceforwritedownininventories (38) (603) Shareofresultsofjointlycontrolledentities 869 (249)

Operatinglossbeforeworkingcapitalchanges (2,960) (1,655)

Increaseinpropertydevelopmentcosts (6,684) (21,532) Decrease/(Increase)ininventories 4,340 (18,336) Decreaseinreceivables 132,095 158,133 Decreaseinpayables (52,848) (105,978)

Cashgeneratedfromoperations 73,943 10,632 Interestreceived 1,701 2,005 Incometaxes(paid)/refund (83) 1,431 Interestpaid (5,249) (14,930) Paymentforliquidatedandascertaineddamages (1,440) (1,342)

NetCashGeneratedFrom/(UsedIn)OperatingActivities 68,872 (2,204)

�� (cont’d)

2009 2008Group Note RM’000 RM’000

CASH FLOwS FROM INvESTING ACTIvITIES Increaseinamountowingbyassociates (169) – Proceedsfromdisposalofinvestmentproperties 300 63,500 Advancesfromjointlycontrolledentities 15,906 29,442 Proceedsfromdisposalofproperty,plantandequipment 410 131 Additionstolandheldforpropertydevelopment (8,116) (36,253) Amountpaidtolandvendors (29,356) (11,572) Purchaseofproperty,plantandequipment (2,249) (2,729) Netcashoutflowarisingfromdeconsolidation anddisposalofsubsidiaries 10(c) – (1,312) Investmentinjointlycontrolledentities (10) (500) Netcashinflowarisingfromacquisitionofsubsidiaries 10(b) 518 –NetCash(UsedIn)/GeneratedFromInvestingActivities (22,766) 40,707

CASH FLOwS FROM FINANCING ACTIvITIES Net(repayment)/drawdownoftermloansandbridgingloans (29,461) 65,865 NetrepaymentofIslamicdebtsecurities (1,207) (59,228) Netrepaymentofshorttermborrowings (7,074) (31,382) Netwithdrawalfrom/(placementin)sinkingfunds heldbytrustees 1,078 (2,991) Housingdevelopmentaccountspledgedassecurityvalues (1,223) (8,887) Bankbalancesreleased/(pledged)assecurityvalues 1,722 (3,618) Depositswithlicensedbankspledgedassecurityvalues (157) (10) Netrepaymentofhirepurchasefinancing (16) (503)

NetCashUsedInFinancingActivities (36,338) (40,754)

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIvALENTS 9,768 (2,251)EFFECTS OF EXCHANGE DIFFERENCES (13,193) 407CASH AND CASH EQUIvALENTS AT THE BEGINNING OF FINANCIAL YEAR 2,254 4,098

CASH AND CASH EQUIvALENTS AT THE END OF FINANCIAL YEAR 18 (1,171) 2,254


CONSOLIDATED CASH FLOW STATEMENTfor the financial year ended 31 January 2009

ANNUAL REPORT 2009

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CASH FLOW STATEMENTfor the financial year ended 31 January 2009

2009 2008Company Note RM’000 RM’000CASH FLOwS FROM OPERATING ACTIvITIESProfit/(Loss)forthefinancialyear 4,277 (23,478)Adjustmentsfor: Interestexpenses 20,853 13,062 Allowancefordoubtfuldebts -subsidiaries – 2,753 -thirdparties 3,550 6,059 Depreciationofproperty,plantandequipment 226 272 Baddebtswrittenoff – 97 Incometaxexpenserecognisedinincomestatements 10 336 Reversalofallowancenolongerrequiredfordoubtfuldebts -thirdparties – (45) -subsidiaries (19,604) (28) Waiverofdebts (4,265) – Waiverofinterest (7,864) (914)

Operatinglossbeforeworkingcapitalchanges (2,817) (1,886) Increaseinpropertydevelopmentcosts – (45,704) Netchangesinamountowingby/tosubsidiaries 7,084 19,180 Decrease/(Increase)inreceivables 7,324 (7,622) (Decrease)/Increaseinpayables 905 11,871Cashgeneratedfrom/(usedin)operations 12,496 (24,161) Interestpaid (247) (5,720)

NetCashGeneratedFrom/(UsedIn)OperatingActivities 12,249 (29,881)

CASH FLOwS FROM INvESTING ACTIvITIES Netchangeinamountowingbyassociates (27) – Advancesfromjointlycontrolledentities 5,691 – Purchaseofproperty,plantandequipment (4) –

NetCashGeneratedFromInvestingActivities 5,660 –

CASH FLOwS FROM FINANCING ACTIvITIES Netrepaymentoftermloansandbridgingloans (10,000) – Net(repayment)/drawdownofshorttermborrowings (7,064) 33,301NetCash(UsedIn)/GeneratedFromFinancingActivities (17,064) 33,301

NET INCREASE IN CASH AND CASH EQUIvALENTS 845 3,420CASH AND CASH EQUIvALENTS AT THE BEGINNING OF FINANCIAL YEAR (5,281) (8,701)

CASH AND CASH EQUIvALENTS AT THE END OF FINANCIAL YEAR 18 (4,436) (5,281)


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NOTES TO THE FINANCIAL STATEMENTS

1. PRINCIPAL ACTIvITIES AND GENERAL INFORMATION

TheprincipalactivitiesoftheCompanyduringthefinancialyearwerethatof theprovisionofmanagementservices,investmentholdingandpropertydevelopment.TheprincipalactivitiesoftheCompany’ssubsidiariesarestatedinNote42.Therehavebeennosignificantchangesinthenatureoftheseprincipalactivitiesduringthefinancialyear.

TheCompanyisapubliclimitedliabilitycompany,incorporatedanddomiciledinMalaysiaandlistedontheMainBoardofBursaMalaysiaSecuritiesBerhad.

TheregisteredofficeandtheprincipalplaceofbusinessoftheCompanyislocatedatSuite2.05,Level2,MenaraMaxisegar,JalanPandanIndah4/2,PandanIndah,55100KualaLumpur.

The financial statements are expressed in Ringgit Malaysia rounded to nearest ’000 unless otherwisespecified.

ThefinancialstatementswereauthorisedforissuebytheBoardofDirectorsinaccordancewitharesolutionofthedirectorson29May2009.

2. FUNDAMENTAL ACCOUNTING CONCEPT

Asat31January2009,theGroupandtheCompanyhavenetcurrentliabilitiesofapproximatelyRM934.766millionandRM37.875millionrespectively.

Asat31January2009, theRegularisationPlanas furtherdisclosed inNote41wasat thefinalstageofimplementationandpendingfortheSecuritiesCommission’sapprovalontherevisionsmadetothePrincipalTermsandConditions of theRedeemableConvertibleSecured LoanStocks (“RCSLS”) and10-Year Al-BaiBithamanAjilIslamicDebtSecurities(“BaIDS”).

Subsequenttothefinancialyear,theSecuritiesCommissionhadon6May2009approvedtherevisionsmadetothePrincipalTermsandConditionsoftheRCSLSandBaIDS.ThecompletionoftheRegularisationPlaniscurrentlypendingfortheissuanceoftheRCSLS,BaIDSandZerodividend5-yearRedeemableConvertiblePreferenceShares(“RCPS”)totheLenders.

Thebankborrowings,deferredprogressbillingstogetherwiththeinterests/profitsaccruedoftheGroupandoftheCompanytotallingRM747.864millionandRM41.281millionrespectivelyclassifiedascurrentliabilitieswillbeconvertedtovariousdebtinstrumentsontheissuanceofRCSLS,BaIDSandRCPStotheLenders.Accordingly,theseborrowingswillbereclassifiedtonon-currentliabilitieswhichwillreflectanimprovementintheGroup’sandtheCompany’snetcurrentliabilitiespositionuponthecompletionoftheRegularisationPlan.

Inviewoftheabove,thedirectorsareoftheopinionthatitisappropriateforthefinancialstatementsoftheGroupandoftheCompanytobepreparedontheassumptionthattheGroupandtheCompanywillcontinueasgoingconcerns.TheapplicationofthegoingconcernbasisisbasedontheassumptionthattheGroupandtheCompanywillbeabletocompletetheRegularisationPlanwithintheanticipatedtimeframeandthattheGroupandtheCompanywillbeabletoachievesustainableandviableoperationsintheforeseeablefutureandconsequently,therealisationoftheassetsandsettlementofliabilitiesinthenormalcourseofbusiness.Inthisconnection,thedirectorsareconfidentthattheRegularisationPlanwouldbecompletedsuccessfullywithintheanticipatedtimeframe.

Accordingly,thefinancialstatementsdonotincludeanyadjustmentsrelatingtotherecoverabilityandclassificationofassetsandtheclassificationofliabilitiesthatmightbenecessaryshouldtheGroupandtheCompanybeunabletocontinueasagoingconcern.

ANNUAL REPORT 2009

(cont’d) �1


3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Unlessotherwisestated,thefollowingaccountingpolicieshavebeenusedconsistentlyindealingwithitemswhichareconsideredmaterialinrelationtothefinancialstatements.Thesepolicieshavebeenconsistentlyappliedtoallthefinancialyearspresented,unlessotherwisestated.

A. BASIS OF PREPARATION

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedinaccordancewiththeFinancialReportingStandards(“FRS”)andtheprovisionsoftheCompaniesAct,1965inMalaysia.

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedunderthehistoricalcostbasis,exceptasdisclosedherein.

ThepreparationoffinancialstatementsinconformitywithFRSrequirestheuseofcertaincriticalaccountingestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosuresofcontingentassetsandliabilitiesatthedateofthefinancialstatements,andthereportedamountsoftherevenueandexpensesduringthereportedperiod.Italsorequiresthedirectors’bestknowledgeofcurrenteventsandactions,andthereforeactualresultsmaydiffer.

Theareasinvolvingahigherdegreeofjudgementorcomplexity,orareaswhereassumptionsandestimatesaresignificanttothefinancialstatementsaredisclosedinNote4.

B. NEw AND REvISED FRS, AMENDMENTS TO FRS AND IC INTERPRETATIONS

(i) Adoption of Revised FRS, Amendments to FRS and IC Interpretations

TheGroupandtheCompanyhadadoptedthefollowingrevisedFRS,amendmentstoFRSandICInterpretations(“ICInt”)thatarerelevanttotheiroperationsandaremandatoryforthecurrentfinancialyear:-

Revised FRSFRS107 CashFlowStatementsFRS111 ConstructionContractsFRS112 IncomeTaxesFRS118 RevenueFRS120 AccountingforGovernmentGrantsandDisclosureofGovernmentAssistanceFRS134 InterimFinancialReportingFRS137 Provisions,ContingentLiabilitiesandContingentAssets

Amendments to FRSFRS121 TheEffectsofChangesinForeignExchangeRates–NetInvestmentinaForeign

Operation

IC InterpretationsICInt1 ChangesinExistingDecommissioning,Restoration&SimilarLiabilitiesICInt2 Members’SharesinCo-operativeEntities&SimilarInstrumentsICInt5 RightstoInterestsarisingfromDecommissioning,Restoration&Environmental

RehabilitationFundsICInt6 LiabilitiesarisingfromParticipating inaSpecificMarket–WasteElectrical&

ElectronicEquipmentICInt7 Applying the Restatement Approach under IAS 29 Financial Reporting in

HyperinflationaryEconomiesICInt8 ScopeofFRS2

TheadoptionoftheaboverevisedFRS,amendmentstoFRSandICIntdidnotresultinanysubstantialchangesintheGroup’sandtheCompany’saccountingpoliciesandhaveanymaterialimpactontheresultsandthefinancialpositionsoftheGroupandoftheCompany.

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3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

B. NEw AND REvISED FRS, AMENDMENTS TO FRS AND IC INTERPRETATIONS (Cont’d)

(ii) FRS and IC Interpretations that are issued, not yet effective and have not been adopted early

TheGroupandtheCompanyhavenotadoptedthefollowingrevisedFRS,amendmentstoFRS,newFRSandICIntthathavebeenissuedasatthedateofauthorisationofthesefinancialstatementsbutarenotyeteffectivefortheGroupandtheCompany:-

Effective for financial periods beginning on or afterRevised FRSFRS123 Borrowingcosts 1January2010

Amendments to FRSFRS127 AmendmentstoFRS1First-timeAdoptionofFinancial 1January2010 ReportingStandardsandFRS127Consolidatedand SeparateFinancialStatements:CostofanInvestment inaSubsidiary,JointlyControlledEntityorAssociate

New FRSFRS4 InsuranceContracts 1January2010FRS7 FinancialInstruments:Disclosures 1January2010FRS8 OperatingSegments 1July2009FRS139 FinancialInstruments:Recognitionand 1January2010 Measurement

IC IntICInt9 ReassessmentofEmbeddedDerivatives 1January2010ICInt10 InterimFinancialReportingandImpairment 1January2010ICInt11 FRS2–GroupandTreasuryShareTransactions 1January2010ICInt13 CustomerLoyaltyProgrammes 1January2010ICInt14 FRS119–TheLimitonaDefinedBenefitAsset, 1January2010 MinimumFundingRequirementsandtheirInteraction

OtherthanFRS139,thedirectorsdonotanticipatethattheapplicationoftheabovenewFRSandICInt,whentheyareeffective,willhaveamaterialimpactontheresultsandthefinancialpositionoftheGroupandoftheCompany.

TheGroupandtheCompanyhaveappliedthetransitionalprovisioninFRS139.103ABwhichexemptsentitiesfromdisclosingthepossibleimpactarisingfromtheinitialrecognitionofthisstandardonthefinancialstatementsoftheGroupandoftheCompanyasrequiredbyparagraph30(b)ofFRS108.

ANNUAL REPORT 2009

(cont’d) ��



C. SUBSIDIARIES AND BASIS OF CONSOLIDATION

(i) Subsidiaries

Subsidiariesare thoseentities inwhich theGrouphas thepower toexercisecontrolover thefinancialandoperatingpoliciessoastoobtainbenefitsfromtheiractivities,generallyaccompanyingashareholdingofmorethanonehalfofthevotingrights.TheexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGrouphassuchpoweroveranotherentity.

IntheCompany’sseparatefinancialstatements,investmentsinsubsidiariesarestatedatcostsless impairment losses, ifany.Thepolicy for the recognitionandmeasurementof impairmentlossesisinaccordancewithNote3K.Ondisposalofsuchinvestments,thedifferencebetweenthenetdisposalproceedsandtheircarryingamountisincludedintheincomestatement.

IntheGroup’sconsolidatedfinancialstatements,thedifferencebetweenthenetdisposalproceedsandtheGroup’sshareofthesubsidiary’snetassetstogetherwithanyunamortisedgoodwillisreflectedasagainorlossondisposalintheconsolidatedincomestatement.

(ii) Basis of Consolidation

TheconsolidatedfinancialstatementsincludethefinancialstatementsoftheCompanyanditssubsidiariesmadeuptotheendofthefinancialyear.

ThefinancialstatementsoftheCompanyanditssubsidiariesarealldrawnuptothesamereportingdate.

Subsidiariesareconsolidatedusingthepurchasemethodofaccounting.Underthepurchasemethodofaccounting,subsidiariesarefullyconsolidatedfromthedateonwhichcontrolistransferredtotheGroupandarede-consolidatedfromthedatethatcontrolceases.

Thecostofanacquisitionismeasuredasthefairvalueoftheassetsgiven,equityinstrumentsissuedandliabilitiesincurredorassumedatthedateofexchange,pluscostsdirectlyattributabletotheacquisition.Identifiableassetsacquiredandliabilitiesandcontingentliabilitiesassumedinabusinesscombinationaremeasuredinitiallyattheir fairvaluesatthedateofacquisition,irrespectiveoftheextentofanyminorityinterest.

The excess of the cost of the acquisition over the net fair value of the Group’s share of theidentifiableassets,liabilitiesandcontingentliabilitiesacquiredatthedateofacquisitionrepresentsgoodwill.AnyexcessofthenetfairvalueoftheGroup’sshareoftheidentifiableassets,liabilitiesandcontingentliabilitiesofthesubsidiariesacquiredoverthecostofacquisitionisrecognisedimmediatelyintheincomestatement.

Intra-grouptransactionsandbalances,andresultingunrealisedgainsareeliminatedonconsolidation.Unrealisedlossesresultingfromintra-grouptransactionsarealsoeliminatedonconsolidationtotheextentofthecostoftheassetthatcanberecovered.Theextentofthecoststhatcannotberecoveredistreatedaswritedownsorimpairmentlossesasappropriate.

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C. SUBSIDIARIES AND BASIS OF CONSOLIDATION (Cont’d)

(ii) Basis of Consolidation (Cont’d)

Minority interest represents that portion of the profit or loss and net assets of a subsidiaryattributabletoequityintereststhatarenotownedbytheCompany,directlyorindirectlythroughthesubsidiary.Itismeasuredattheminorities’shareofthefairvaluesofthesubsidiary’sidentifiableassetsandliabilitiesattheacquisitiondateandtheminorities’shareofchangesinthesubsidiary’sequitysincethatdate.

Wherelossesapplicabletotheminorityexceedtheminority’sinterestintheequityofasubsidiary,theexcess,andanyfurtherlossesapplicabletotheminority,arechargedagainsttheGroup’sinterestexcepttotheextentthattheminorityhasabindingobligationto,andisableto,makeadditionalinvestmenttocoverthelosses.Ifthesubsidiarysubsequentlyreportsprofits,theGroup’sinterestisallocatedallsuchprofitsuntiltheminority’sshareoflossespreviouslyabsorbedbytheGrouphasbeenrecovered.

D. ASSOCIATES

AssociatesarethoseentitiesinwhichtheGrouphassignificantinfluence,butwhichitdoesnotcontrol,generallyaccompanyingashareholdingofbetween20%and50%ofthevotingrights.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotthepowertoexercisecontroloverthosepolicies.

Investmentsinassociatesareaccountedforintheconsolidatedfinancialstatementsusingtheequitymethodofaccountingandareinitiallyrecognisedatcost.TheGroup’sinvestmentinassociatesincludesgoodwillidentifiedonacquisition,netofanyaccumulatedimpairmentloss.ThepolicyfortherecognitionandmeasurementofimpairmentlossesisinaccordancewithNote3K.

ThemostrecentavailableauditedfinancialstatementsoftheassociatesareusedbytheGroupinapplyingtheequitymethod.WherethedatesoftheauditedfinancialstatementsusedarenotcoterminouswiththoseoftheGroup,theshareofresultsisarrivedatfromthelastauditedfinancialstatementsavailableandmanagementfinancialstatementstotheendoftheaccountingperiod.Uniformaccountingpoliciesareadoptedforliketransactionsandeventsinsimilarcircumstances.

Undertheequitymethod,theinvestmentinassociateiscarriedintheconsolidatedbalancesheetatcostadjustedforpostacquisitionchangesintheGroup’sshareofnetassetsoftheassociate.TheGroup’sshareofthenetprofitor lossoftheassociate isrecognised intheconsolidated incomestatement.Wheretherehasbeenachangerecogniseddirectlyintheequityoftheassociate,theGrouprecognisesitsshareofsuchchanges.

Inapplyingtheequitymethod,unrealisedgainsandlossesontransactionsbetweentheGroupandtheassociateareeliminatedtotheextentofGroup’sinterestintheassociate,andtheunrealisedlossesareeliminatedtotheextentofthecoststhatcanberecovered.

WhentheGroup’sshareoflossesinanassociateequalsorexceedsitsinterestintheassociate,includinganyotherunsecuredreceivables,theGroup’sinterestisreducedtonilandrecognitionoffurtherlossesisdiscontinuedexcepttotheextentthattheGrouphasincurredlegalorconstructiveobligationsormadepaymentsonbehalfoftheassociate.

ANNUAL REPORT 2009

(cont’d) ��



D. ASSOCIATES (Cont’d)

Aftertheapplicationoftheequitymethod,theGroupdetermineswhetheritisnecessarytorecogniseanyimpairmentlosswithrespecttotheGroup’snetinvestmentintheassociate.TheassociateisequityaccountedforfromthedatetheGroupobtainssignificantinfluenceuntilthedatetheGroupceasestohavesignificantinfluenceovertheassociate.

Goodwillrelatingtoanassociateisinthecarryingamountoftheinvestmentandisnotamortised.AnyexcessoftheGroup’sshareofthenetfairvalueoftheassociate’sidentifiableassets,liabilitiesandcontingentliabilitiesoverthecostoftheinvestmentisexcludedfromthecarryingamountoftheinvestmentandisinsteadincludedasincomeinthedeterminationoftheGroup’sshareoftheassociate’sprofitorlossintheperiodinwhichtheinvestmentisacquired.

Ondisposalofsuch investment, thedifferencebetween thenetdisposalproceedsand thecarryingamountoftheinvestmentinanassociateisreflectedasagainorlossondisposalintheconsolidatedincomestatement.

E. jOINTLY CONTROLLED ENTITIES

Jointly controlled entities are corporations, partnerships or other entities in which the Group hascontractuallyagreedtoshareitscontrolwithoneormoreparties,wherestrategicfinancialandoperatingdecisionsrelatingtothejointlycontrolledentityrequiredunanimousconsentoftheparties.

TheGroup’sinterestsinjointlycontrolledentitiesareaccountedforintheconsolidatedfinancialstatementsusingtheequitymethodofaccountingasdescribed inNote3Dbasedonthemanagementfinancialstatementsofthejointlycontrolledentities.

F. PROPERTY, PLANT AND EQUIPMENT

Property,plantandequipmentarestatedathistoricalcostlessaccumulateddepreciationandimpairmentlosses,ifany.ThepolicyfortherecognitionandmeasurementofimpairmentlossesisinaccordancewithNote3K.

Costincludesexpenditurethatisdirectlyattributabletotheacquisitionoftheasset.Whensignificantpartsofanitemofproperty,plantandequipmenthavedifferentusefullives,theyareaccountedforasseparateitemsofproperty,plantandequipment.

Thecostofreplacingpartofanitemofproperty,plantandequipmentisincludedintheasset’scarryingamountor recognisedasaseparateasset,asappropriate,onlywhen it isprobable that the futureeconomicbenefitsassociatedwiththepartwillflowtotheGroupanditscostcanbemeasuredreliably.Thecarryingamountofthereplacedpartisderecognised.Allotherrepairsandmaintenancearechargedtotheincomestatementasincurred.

Property,plantandequipmentaredepreciatedonastraightlinebasistowriteoffthecostofeachassettoitsresidualvalueovertheestimatedusefullivesoftheassetsconcerned.Theannualratesusedforthispurposeareasfollows:-

Leaseholdlandandbuildings 2%-2.5%Plantandmachinery,toolsandequipment, crockeryandkitchenware 10%-25%Officeequipment,furnitureandfittings 10%-20%Motorvehicles 20%Renovation 10%-35%

�� (cont’d)



F. PROPERTY, PLANT AND EQUIPMENT (Cont’d)

The residual valuesanduseful livesof property, plant andequipmentare reviewed, andadjusted ifappropriate,ateachbalancesheetdate.Theeffectsofanyrevisionsoftheresidualvaluesandusefullivesareincludedintheincomestatementforthefinancialyearinwhichthechangesarise.

Fullydepreciatedassetsareretainedintheaccountsuntiltheassetsarenolongerinuse.

Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuseordisposal.Anygainorlossarisingonderecognitionoftheassetisincludedintheincomestatementinthefinancialyeartheassetisderecognised.

G. INvESTMENT PROPERTIES

Investmentpropertiesareinvestmentinlandandbuildingsthatareheldforlongtermrentalyieldsand/orforcapitalappreciation.

Investmentinfreeholdlandisstatedatcostandisnotdepreciatedasithasanindefinitelife.Otherinvestmentpropertiesarestatedatcostlessaccumulateddepreciationandimpairmentlosses,ifany.ThepolicyfortherecognitionandmeasurementofimpairmentlossesisinaccordancewithNote3K.

Otherinvestmentpropertiesaredepreciatedonastraightlinebasistowriteoffthecostoftheassetstotheirresidualvaluesovertheirestimatedusefullivesatanannualrateof1%to2.5%.

Ondisposalofan investmentproperty,orwhen it ispermanentlywithdrawn fromuseandno futureeconomicbenefitsareexpectedfromitsdisposal,itshallbederecognised(eliminated)fromthebalancesheet.Thedifferencebetweenthenetdisposalproceedsanditscarryingamountischargedorcreditedtotheincomestatementinthefinancialyearoftheretirementordisposal.

H. PROPERTY DEvELOPMENT ACTIvITIES

(i) Land Held for Property Development

Land held for property development consists of development costs on which no significantdevelopmentworkhasbeenundertakenorwheredevelopmentactivitiesarenotexpectedtobecompletedwithinthenormaloperatingcycle.Suchlandisclassifiedasnon-currentassetandisstatedatcostlessanyaccumulatedimpairmentlosses,ifany.ThepolicyfortherecognitionandmeasurementofimpairmentlossesisinaccordancewithNote3K.

Costcomprisesthecostoflandandallrelatedcostsincurredonactivitiesnecessarytopreparethelandforitsintendeduse.

Landheldforpropertydevelopmentistransferredtopropertydevelopmentcostsandincludedundercurrentassetswhendevelopmentactivitieshavecommencedandareexpectedtobecompletedwithinthenormaloperatingcycle.

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H. PROPERTY DEvELOPMENT ACTIvITIES (Cont’d)

(ii) Property Development Costs

Propertydevelopmentcostscomprisecostsassociatedwiththeacquisitionoflandandallcoststhataredirectlyattributabletodevelopmentactivitiesorcoststhatcanbeallocatedonareasonablebasistotheseactivities.

Whenthefinancialoutcomeofadevelopmentactivitycanbereliablyestimated,propertydevelopment

revenueandexpensesarerecognisedintheincomestatementbyusingthestageofcompletionmethod.Thestageofcompletionisdeterminedbytheproportionofpropertydevelopmentcostsincurredfortheworkperformeduptothebalancesheetdateovertheestimatedtotalpropertydevelopment costs to completion. Under this method, profits are recognised as the propertydevelopmentactivityprogresses.

Where the financial outcome of a development activity cannot be reliably estimated, propertydevelopmentrevenueisrecognisedonlytotheextentofpropertydevelopmentcostsincurredthatisprobablewillberecoverable,andpropertydevelopmentcostsonpropertiessoldarerecognisedasanexpenseintheperiodinwhichtheyareincurred.

Anyforeseeablelossonadevelopmentproject,includingcoststobeincurredoverthedefectsliabilityperiod,isrecognisedasanexpenseimmediatelyintheincomestatement.

Propertydevelopmentcostsnotrecognisedasanexpenseisrecognisedasanasset,whichismeasuredatthelowerofcostandnetrealisablevalue.Uponthecompletionofdevelopment,theunsoldcompleteddevelopmentpropertiesaretransferredtoinventories.

Theexcessofrevenuerecognisedintheincomestatementoverbillingstopurchasersisclassifiedasaccruedbillingswithintradereceivablesandtheexcessofbillingstopurchasersoverrevenuerecognisedintheincomestatementisclassifiedasprogressbillingswithintradepayables.

I. GOODwILL

GoodwillrepresentstheexcessofthecostofbusinesscombinationovertheGroup’sshareofthenetfairvalueoftheidentifiableassets,liabilitiesandcontingentliabilitiesatthedateofacquisition.Followingtheinitialrecognition,goodwillisstatedatcostlessimpairmentlosses,ifany.ThepolicyfortherecognitionandmeasurementofimpairmentlossesisinaccordancewithNote3K.

Goodwillisnotamortisedbutisreviewedforimpairmentinvalue,annuallyormorefrequentlyandiswrittendownwhereitisconsiderednecessary.Impairmentlossesongoodwillarenotreversed.Thecalculationofgainsandlossesonthedisposalofanentityincludesthecarryingamountofgoodwillrelatingtotheentitybeingsold.

Goodwillisallocatedtocash-generatingunitsforthepurposeofimpairmenttesting.Theallocationismadetothosecash-generatingunitsorgroupsofcash-generatingunitsthatareexpectedtobenefitfromthesynergiesofthebusinesscombinationinwhichthegoodwillarise.

NegativegoodwillrepresentstheexcessofthenetfairvalueoftheGroup’sshareofidentifiableassets,liabilitiesandcontingentliabilitiesacquiredasatthedateofacquisitionoverthecostofacquisition.Negativegoodwillisrecogniseddirectlyintheincomestatement.

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j. INvESTMENTS

Investmentsinsubsidiaries,associates,jointlycontrolledentitiesandotherinvestmentsarestatedatcostlessimpairmentlosses,ifany.ThepolicyfortherecognitionandmeasurementofimpairmentlossesisinaccordancewithNote3K.

Ondisposalofaninvestment,thedifferencebetweenthenetdisposalproceedsanditscarryingamountischargedorcreditedtotheincomestatement.

K. IMPAIRMENT OF ASSETS

Thecarryingamountofassets,otherthaninventories,deferredtaxassetsandfinancialassets(excludinginvestments insubsidiaries,associatesand jointlycontrolledentities),arereviewedateachbalancesheetdatetodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists,theasset’srecoverableamountisestimatedtodeterminetheamountofimpairmentloss.

Forthepurposeof impairmenttestingoftheseassets,therecoverableamount isdeterminedonanindividualassetbasisunlesstheassetdoesnotgeneratecashflowsthatarelargelyindependentofthosefromotherassets.Ifthisisthecase,therecoverableamountisdeterminedforthecash-generatingunit(“CGU”)towhichtheassetbelongsto.

Anasset’srecoverableamountisthehigherofanasset’sorCGU’sfairvaluelesscosttosellanditsvalueinuse.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Wherethecarryingamountsofanassetexceeditsrecoverableamount,theasset isconsidered impairedand iswrittendown to its recoverableamount. Impairment lossesrecognisedinrespectofaCGUorgroupsofCGUsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtothoseunitsorgroupsofunitsandthen,toreducethecarryingamountoftheotherassetsintheunitorgroupsofunitsonapro-ratabasis.

Animpairmentlossisrecognisedintheincomestatementintheperiodinwhichitarises.

Impairmentlossongoodwillisnotreversedinasubsequentperiod.Animpairmentlossforanassetotherthangoodwillisreversedif,andonlyif,therehasbeenachangeintheestimatesusedtodeterminetheasset’srecoverableamountsincethelastimpairmentwasrecognised.Thecarryingamountofanassetotherthangoodwillisincreasedtoitsrevisedrecoverableamount,providedthatthisamountdoesnotexceeditscarryingamountthatwouldhavebeendetermined(netofamortisationordepreciation)hadnoimpairmentlossbeenrecognisedfortheassetinprioryears.Areversalofimpairmentlossforanassetotherthangoodwillisrecognisedintheincomestatement.

L. INvENTORIES

Inventoriesarestatedatthelowerofcostandnetrealisablevalue.Costisdeterminedusingthefirst-in-first-outbasisforfinishedgoodsandconsumables,andspecificidentificationbasisforcompletedunitsofunsolddevelopedproperties.

Thecostsoffinishedgoodsandconsumablescomprisethepurchasepricepluscostsincurredtobringtheinventoriestotheirpresentlocationsandconditions.Thecostofunsoldpropertiescomprisescostassociatedwiththeacquisitionofland,directcostsandanappropriateproportionofallocatedcostsattributabletopropertydevelopmentactivities.

Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lessthecostsofcompletionandsellingexpenses.

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M. RECEIvABLES

Receivablesarecarriedatanticipatedrealisablevalues.Inestimatingtherealisablevalues,anallowanceismadefordoubtfuldebtsbasedonareviewofalloutstandingamountsasatthebalancesheetdate.Baddebtsarewrittenofftotheincomestatementduringthefinancialyearinwhichtheyareidentified.

N. PAYABLES

Payablesarestatedatthefairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived.

O. HIRE PURCHASE

Assetsfinancedbyhirepurchasearrangements,whichtransfersubstantiallyalltherisks,andrewardsofownershiptotheGrouparecapitalisedasproperty,plantandequipment,andthecorrespondingobligationsaretreatedasliabilities.Theassetssocapitalisedaredepreciatedinaccordancewiththeaccountingpolicyonproperty,plantandequipment.Financechargesarechargedtotheincomestatementsovertheperiodsoftherespectiveagreements.

P. LEASES

(i) Finance Leases

Leasesofproperty,plantandequipmentwheretheGroupassumessubstantiallyallthebenefitsandrisksofownershipareclassifiedasfinanceleases.

Assetsacquiredbywayoffinanceleasearestatedatanamountequaltotheloweroftheirfairvaluesandthepresentvalueofminimumleasepaymentsat the inceptionof the leases, lessaccumulateddepreciationandimpairmentlosses,ifany.Thecorrespondingliabilityisincludedinthebalancesheetasborrowings.Incalculatingthepresentvalueofminimumleasepayments,thediscountfactorusedistheinterestrateimplicitinthelease,whenitispracticabletodetermine;otherwise,theGroup’sincrementalborrowingrateisused.Property,plantandequipmentacquiredunderfinanceleasesaredepreciatedovertheshorteroftheestimatedusefullifeoftheassetandtheleaseterm.

Leasepaymentsareapportionedbetweenthefinancecostsandthereductionoftheoutstandingliability.Financecost,whichrepresentthedifferencebetweenthetotalleasingcommitmentsandthefairvalueoftheassetsacquired,arerecognisedasanexpenseintheincomestatementoverthetermoftherelevantleasesoastoproduceaconstantperiodicrateofchargeontheremainingbalanceoftheobligationsforeachaccountingperiod.

(ii) Operating Leases

Leasesofassetswhereasignificantportionoftherisksandrewardsofownershipareretainedbythelessorareclassifiedasoperatingleases.Operatingleasepaymentsarerecognisedasanexpenseonastraightlinebasisoverthetermoftherelevantlease.Theaggregatebenefitofincentivesprovidedbythelessorisrecognisedasareductionofrentalexpenseovertheleasetermonastraightlinebasis.

Inthecaseofaleaseoflandandbuildings,theminimumleasepaymentsortheup-frontpaymentsmadeareallocated,whenevernecessary,betweenthelandandthebuildingselementsinproportiontotherelativefairvaluesforleaseholdinterestsforthelandelementandthebuildingselementof the leaseat the inceptionof the lease.Theup-frontpayments relating to the landelementrepresentsprepaidleasepaymentandareamortisedtotheincomestatementonastraightlinebasisovertheremainingperiodofthelease.

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Q. BORROwINGS

Borrowingsareinitiallyrecognisedbasedontheproceedsreceived,netoftransactioncostsincurred.Inthesubsequentperiods,borrowingsarestatedatamortisedcostusingtheeffectiveyieldmethod;anydifferencebetweenproceeds(netoftransactioncosts)andtheredemptionvalueisrecognisedintheincomestatementovertheperiodoftheborrowings.

Interest,dividends,lossesandgainsrelatingtoafinancialinstrument,oracomponentpart,classifiedasaliabilityisreportedwithinfinancecostintheincomestatement.

R. PROvISIONS FOR LIABILITIES

ProvisionsforliabilitiesarerecognisedwhentheGrouphasapresentobligationasaresultofapastevent,whenitisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligation,andwhenareliableestimateoftheamountcanbemade.Provisionsarereviewedateachbalancesheetdateandadjustedtoreflectthecurrentbestestimate.Wheretheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpre-taxratethatreflects,whereappropriate,therisksspecifictotheliability.

S. CONTINGENT LIABILITIES

AcontingentliabilityisapossibleobligationthatarisesfrompasteventandwhoseexistencewillonlybeconfirmedbytheoccurrenceofoneormoreuncertainfutureeventsnotwhollywithinthecontroloftheGroup.Itcanalsobeapresentobligationarisingfrompasteventsthatisnotrecognisedbecauseitisnotprobablethatoutflowofeconomicresourceswillberequiredortheamountofobligationcannotbemeasuredreliably.

Acontingentliabilityisnotrecognisedbutisdisclosedinthenotestothefinancialstatements.Whenachangeintheprobabilityofanoutflowoccurssothattheoutflowisprobable,itwillthenberecognisedasaprovision.

T. DEFERRED PROGRESS BILLINGS

DeferredprogressbillingsarestatedatcostwhichisthefairvalueoftheconsiderationtobepaidinthefutureforthecontractualobligationsenteredintoundertheIslamicsAssetsBackedSecuritisationarrangement.

U. TAXATION

Thetaxexpenseintheincomestatementsrepresentstheaggregateamountofcurrenttaxanddeferredtax.Currenttaxistheexpectedamountofincometaxespayableinrespectofthetaxableprofitfortheyearandismeasuredusingthetaxratesthathavebeenenactedatthebalancesheetdate.

Deferredtaxisprovidedfor,usingtheliabilitymethod,ontemporarydifferencesatthebalancesheetdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsinthefinancialstatements.Inprinciple,deferred tax liabilitiesare recognised forall taxable temporarydifferencesanddeferredtaxassetsarerecognisedforalldeductibletemporarydifferences,unusedtaxlossesandunusedtaxcredits to theextent that it isprobable that future taxableprofitwill beavailableagainstwhich thedeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditscanbeutilised.Deferredtaxisnotrecognisedifthetemporarydifferencearisesfromgoodwillornegativegoodwillorfromtheinitialrecognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationandattimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit.

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U. TAXATION (Cont’d)

Thecarryingamountofdeferredtaxassets,ifany,isreviewedateachbalancesheetdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartoftheassettoberecovered.

Deferredtaxismeasuredatthetaxratesthatareexpectedtoapplyintheperiodwhentheassetisrealisedortheliabilityissettled,basedontaxratesthathavebeenenactedorsubstantivelyenactedatthebalancesheetdate.Deferredtaxisrecognisedintheincomestatement,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity,inwhichcasethedeferredtaxisalsochargedorcrediteddirectlyinequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwill.

DeferredtaxassetsanddeferredtaxliabilitiesareoffsetwhenthereisalegallyenforceablerighttooffsetcurrenttaxassetsagainstcurrenttaxliabilitiesandwhentheyrelatetoincometaxesleviedbythesametaxationauthorityandtheGroupintendstosettleitscurrenttaxassetsandcurrenttaxliabilitiesonanetbasis.

v. SHARE CAPITAL

(i) Ordinary Shares

Ordinarysharesarerecordedatthenominalvalue.Theconsiderationinexcessofnominalvalueofsharesissued,ifany,isaccountedforassharepremium.Bothordinarysharesandsharepremiumareclassifiedasequity.

Dividendsonordinarysharesarerecognisedasliabilitieswhenproposedordeclaredbeforethebalancesheetdate.Adividendproposedordeclaredafterthebalancesheetdate,butbeforethefinancialstatementsareauthorisedforissue,isnotrecognisedasaliabilityatthebalancesheetdate.

Costsincurreddirectlyattributabletotheissuanceofthesharesareaccountedforasadeductionfromsharepremium,ifany,otherwiseitischargedtotheincomestatement.Equitytransactioncostscompriseonlythoseincrementalexternalcostsdirectlyattributabletotheequitytransactionwhichwouldotherwisehavebeenavoided.

Theconsiderationpaid,includingattributabletransactioncostsonrepurchasedordinarysharesoftheCompanythathavenotbeencancelled,areclassifiedastreasurysharesandpresentedasadeductionfromequity.Sharesrepurchasedareheldastreasurysharesandareaccountedforusingthetreasurystockmethod.Underthetreasurystockmethod,thesharesrepurchasedarenotcancelledbutareheldastreasuryshares.Thetreasurysharesarecarriedatcost.

Wheretreasurysharesaredistributedassharedividends,thecostofthetreasuryshareswillbeappliedinthereductionofthesharepremiumaccountorthedistributablereserves,orboth,whereappropriate.

Wheretreasurysharesarereissuedbyre-sale intheopenmarket, thedifferencebetweenthesalesconsiderationandthecarryingamountofthetreasuryshareswillbeshownasamovementinequity.

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v. SHARE CAPITAL (Cont’d)

(ii) Preference Shares

Preferencesharesareclassifiedasequityiftheyarenon-redeemableanddividendsarediscretionaryattheoptionoftheissuer.Preferencesharesareclassifiedasliabilitiesiftheyareredeemableonaspecificdateorattheoptionoftheshareholdersanddividendsthereonarerecognisedintheincomestatementasinterestexpense.Preferencesharesthatarecompoundinstrumentsaresplitintoliabilityandequitycomponents.Eachcomponentisaccountedforseparately.Dividendsonpreferencesharesarerecognisedonanaccrualbasisasaliabilityandarereportedasfinancecostsintheincomestatement.

w. REvENUE RECOGNITION

TheGrouprecognisesrevenuewhentheamountofrevenuecanbereliablymeasured,itisprobablethatfutureeconomicbenefitswillflowtotheentityandspecificcriteriahavebeenmetforeachoftheGroup’sactivitiesasdescribedbelow.Theamountofrevenueisnotconsideredtobereliablymeasurableuntilallcontingenciesrelatingtothesalehavebeenresolved.TheGroupbasesitsestimatesonhistoricalresults,takingintoconsiderationthetypeofcustomer,thetypeoftransactionandthespecificsofeacharrangement.

(i) Sales of goods and consumables

Revenueisrecognisedupondeliveryofproductsandcustomers’acceptance,netofsalestax,discountsandreturnsandwhenthesignificantriskandrewardsofownershiphavebeenpassedtothebuyer.Revenueisnotrecognisedtotheextentwheretherearesignificantuncertaintiesregardingrecoveryoftheconsiderationdue,associatedcostsorthepossiblereturnofgoods.

(ii) Property development

Revenuefromthesaleofpropertydevelopmentprojectsisrecognisedprogressivelyastheprojectactivityprogressesand is in respectofsaleswhen theagreementshavebeenfinalised. Therecognitionofrevenueisbasedonthepercentageofcompletionmethod,netofdiscount,andisconsistentwiththemethodadoptedforprofitrecognition.Provisionforforeseeablelossesismadewhenestimatedfuturerevenuerealisableislowerthanthecarryingamountoftheproject.

Interestincomefromlatepaymentsbyhousebuyersandforfeitureincomearerecognisedonareceiptbasis.

(iii) Revenue from hotel operations and other recreational income Revenueisrecogniseduponservicesrenderedandcustomer’sacceptance,netofservicetaxes

anddiscounts.

(iv) Dividend income Dividendincomeisrecognisedwhentherighttoreceivethepaymentisestablished.

(v) Management fee

Managementfeeisrecognisedonanaccrualbasis,netofservicetaxes.

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w. REvENUE RECOGNITION (Cont’d)

(vi) Interest income

Interestincomeotherthaninterestincomefromlatepaymentbyhousebuyersandothertradereceivablesarerecognisedonanaccrualbasisunlesscollectibilityisindoubtinwhichrecognitionwillbeonareceiptbasis.

(vii) Rental income

Rentalincomefrominvestmentpropertiesarerecognisedonanaccrualbasis.(viii) Deferred membership income

Deferred membership income represents membership fees from club members. The deferredmembershipincomeisrecognisedevenlyasrevenueintheincomestatementovertheperiodofthemembershiplicenseagreements.

X. EMPLOYEE BENEFITS

(i) Short Term Employee Benefits

Wages,salaries,bonuses,socialsecuritycontributionandnon-monetarybenefitsarerecognisedasanexpenseinthefinancialyearinwhichtheassociatedservicesarerenderedbytheemployees.Shorttermaccumulatingcompensatedabsencessuchaspaidannualleavearerecognisedwhenservicesarerenderedbyemployeesthatincreasetheirentitlementtofuturecompensatedabsences.Shorttermnon-accumulatingcompensatedabsencessuchassickleaveandmaternityleavearerecognisedwhenabsencesoccur.

(ii) Post-Employment Benefits

TheGroupcontributestotheEmployeesProvidentFund,thenationaldefinedcontributionplan.Certainforeignsubsidiariesmakecontributionstotheirrespectivecountries’statutorypensionscheme.Thecontributionsarechargedtotheincomestatementintheperiodtowhichtheyarerelated.Oncethecontributionshavebeenpaid,theGrouphasnofurtherpaymentobligations.

Y. FOREIGN CURRENCIES

(i) Functional and Presentation Currency

TheindividualfinancialstatementsofeachentityintheGrouparemeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(“thefunctionalcurrency”).ThefinancialstatementsarepresentedinRinggitMalaysia(“RM”),whichistheCompany’sfunctionalcurrencyandpresentationcurrency.

(ii) Transactions and Balances

Foreigncurrencytransactionsaretranslatedintothefunctionalcurrencyusingtheexchangeratesprevailingatthedatesofthetransactions.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsandfromthetranslationatyear-endexchangeratesofmonetaryassetsandliabilitiesdenominatedinforeigncurrenciesarerecognisedintheincomestatement.

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Y. FOREIGN CURRENCIES (Cont’d)

(ii) Transactions and Balances (Cont’d)

Non-monetary itemswhicharemeasuredat fair valuesdenominated in foreign currenciesaretranslatedattheforeignexchangeraterulingatthedatewhenthefairvalueswasdetermined.

Whenagainorlossonanon-monetaryitemisrecogniseddirectlyinequity,anycorresponding

exchangegainorlossisrecogniseddirectlyinequity.Whenagainorlossonanon-monetaryitemisrecognisedintheincomestatement,anycorrespondingexchangegainorlossisrecognisedintheincomestatement.

Theresultsandfinancialpositionofallthegroupentities(noneofwhichhasthecurrencyofahyperinflationaryeconomy)thathaveafunctionalcurrencydifferentfromthepresentationcurrencyaretranslatedintothepresentationcurrencyasfollows:-

• assetsandliabilitiesforeachbalancesheetpresentedaretranslatedattheclosingrateat

thedateofthatbalancesheet;

• incomeandexpensesforeachincomestatementaretranslatedataverageexchangerates(unlessthisaverageisnotareasonableapproximationofthecumulativeeffectoftheratesprevailingonthetransactiondates,inwhichcaseincomeandexpensesaretranslatedattherateonthedates);and

• allresultingexchangedifferencesarerecognisedasaseparatecomponentofequity.

Onconsolidation,exchangedifferencesarisingfromthetranslationofthenetinvestmentinforeignoperationsaretakentoshareholders’equity.Whenaforeignoperationispartiallydisposedoforsold,exchangedifferencesthatwererecordedinequityarerecognisedintheincomestatementaspartofthegainorlossonsale.

z. BORROwING COSTS

Borrowing costs directly attributable to the acquisition and construction of land held for propertydevelopment,investmentpropertiesandotherproperties,arecapitalisedaspartofthecostsofthoseassets,untilsuchtimetheassetsaresubstantiallyreadyfortheirintendeduseorsale.Borrowingcostincurredonassetsunderdevelopmentthattakeasubstantialperiodoftimeforcompletionarecapitalisedintothecarryingvalueoftheassets.Capitalisationofborrowingcostswillbesuspendedwhentheassetsarecompletedorduringtheperiodinwhichdevelopmentandconstructionarestalled.

Theamountofborrowingcostseligibleforcapitalisationistheactualborrowingcostsincurredonthatborrowingduringtheperiodlessanyinvestmentincomeonthetemporaryinvestmentoffundsdrawdownfromthatborrowingfacilities.

Allotherborrowingcostsarerecognisedasanexpenseintheincomestatementintheperiodinwhichtheyareincurred.

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AA. FINANCIAL INSTRUMENTS

FinancialinstrumentsarerecognisedinthebalancesheetwhentheGrouphasbecomeapartytothecontractualprovisionsoftheinstruments.Theparticularrecognitionmethodsadoptedaredisclosedintheindividualaccountingpolicystatementsassociatedwitheachitem.

Financial instruments are classified as liabilities or equity in accordance with the substance of thecontractualarrangement.Interest,dividends,gainsandlossesrelatingtoafinancialinstrumentclassifiedasaliability,arereportedasanexpenseorincome.Distributionstoholdersoffinancialinstrumentsclassifiedasequityarechargeddirectlytoequity.FinancialinstrumentsareoffsetwhentheGrouphasalegallyenforceablerighttosetofftherecognisedamountsandintendseithertosettleonanetbasis,ortorealisetheassetandsettletheliabilitysimultaneously.

AB. SEGMENT REPORTING

SegmentreportingispresentedforenhancedassessmentsoftheGroup’srisksandreturns.Abusinesssegmentisagroupofassetsandoperationsengagedinprovidingproductsorservicesthataresubjecttorisksandreturnsthataredifferentfromthoseofotherbusinesssegments.Ageographicalsegmentisengagedinprovidingproductsorserviceswithinaparticulareconomicenvironmentthatissubjecttorisksandreturnsthataredifferentfromthosecomponentsoperatinginothereconomicenvironments.

Segmentrevenue,expense,assetsandliabilitiesarethoseamountsresultingfromtheoperatingactivitiesofasegmentthataredirectlyattributabletothesegmentandtherelevantportionthatcanbeallocatedonareasonablebasistothesegment.

Segmentrevenue,expense,assetsandliabilitiesaredeterminedbeforeintragroupbalancesandintragrouptransactionsareeliminatedaspartoftheconsolidationprocess,excepttotheextentthatsuchintragroupbalancesandtransactionsarebetweenoperatingunitswithinasinglesegment.SegmentrevenueandsegmentexpenseexcludedividendsfromwithintheGroup.

Allincome,expenses,assetsandliabilitiesaredirectlyallocatedtoeachreportedsegment.Interestincomeandotherincomeandexpenseswhichcannotbeallocatedtorespectivesegmentonareasonablebasisaredisclosedaseitherunallocatedincomeorunallocatedexpenses,whiletherelatedassetsandliabilitiesaredisclosedasunallocatedassetsandunallocatedliabilities.

The accounting policies used in deriving the individual segment revenue, segment results, segmentassetsandsegmentliabilitiesarethesameasthosedisclosedinthesummaryofsignificantaccountingpolicies.

Transfersbetweensegmentsarepricedattheestimatedfairvalueoftheproductsorservicesasnegotiatedbetweentheoperatingunits.

AC. CASH AND CASH EQUIvALENTS

Forthepurposeofcashflowstatements,cashandcashequivalentscomprisecashinhand,bankbalances,fixeddeposits,demanddepositsandshorttermhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorless,thatarereadilyconvertibletoknownamountsofcashwhicharesubjecttoaninsignificantriskofchangesinvalue,netofbankoverdraftsanddepositspledgedtofinancialinstitutions.

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4. SIGNIFICANT ACCOUNTING ESTIMATES AND jUDGEMENTS

Estimatesandjudgementsarecontinuallyevaluatedbythedirectorsandarebasedonhistoricalexperienceand other factors, including expectations of future events that are believed to be reasonable under thecircumstances.

(a) Critical judgements in applying accounting policies

IntheprocessofapplyingtheGroup’sandtheCompany’saccountingpolicies,managementisoftheopinionthattherearenoinstancesofapplicationofjudgementwhichareexpectedtohaveasignificanteffectontheamountsrecognisedinthefinancialstatementsexceptformattersdiscussedbelow:

(i) Contingent liabilities

AsdescribedinNote3S,acontingentliabilityisnotrecognisedbutisdisclosedinthenotestothefinancialstatementsandwhenachangeintheprobabilityofanoutflowoccurssothattheoutflowisprobable,itwillthenberecognisedasaprovision.Asattheendofthefinancialyear,theCompanyhasprovidedguaranteestofinancialandnon-financialinstitutionsforfacilitiesgrantedtoitssubsidiariestotallingRM507.779millionasdisclosedinNote39.NoprovisionforliabilitieshasbeenmadeinthefinancialstatementsoftheCompanyasthequantumofwhichtheCompanyisliabletomakegoodcannotbepresentlydetermined.

(ii) Classification between investment properties and property, plant and equipment

TheGrouphasdevelopedcertain criteriabasedon FRS140 InvestmentProperties inmakingjudgementonwhetherapropertyqualifiesasaninvestmentproperty. Investmentpropertyisapropertyheldtoearnrentalsorforcapitalappreciationorboth.

Somepropertiescompriseaportionthatisheldtoearnrentalsorforcapitalappreciationandanotherportionthatisheldforuseintheproductionorsupplyofgoodsorservicesorforadministrativepurposes.Iftheseportionscouldbesoldseparately(or leasedoutseparatelyunderafinancelease), theGroupwouldaccount for theportionsseparately. If theportionscouldnotbesoldseparately,thepropertyisaninvestmentpropertyonlyifaninsignificantportionisheldforuseintheproductionorsupplyofgoodsorservicesorforadministrativepurposes.Judgementismadeonanindividualpropertybasistodeterminewhetherancillaryservicesaresosignificantthatapropertydoesnotqualifyasinvestmentproperty.

Duringthefinancialyear,acomplexwithanetbookvalueofapproximatelyRM57.077million,whichwaspreviouslyclassifiedunderproperty,plantandequipment,wasreclassifiedtoinvestmentpropertiesinviewofthechangeintheusageofthiscomplex,i.e.majorityportionsofthiscomplexareheldtoearnrentalswhereastherewereinsignificantportionsheldforadministrativepurposesandthoseportionscouldnotbesoldseparately.Accordingly,thiscomplexhasbeenreclassifiedtoinvestmentproperties.

(iii) Capitalisation of borrowing costs

AsdescribedinNote3Z,itistheGroup’spolicytocapitaliseborrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassets,whichareassetsthatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,aspartofthecostofthoseassets,untilsuchtimeastheassetsaresubstantiallyreadyfortheirintendeduseorsale.BorrowingcostshavebeencapitalisedintheGroup’spropertydevelopmentcosts,asmentionedinNotes6and33amounting toRM3.264million (2008:RM9.609million).Thedirectorsaresatisfiedthatthecapitalisationofborrowingcostsonpropertydevelopmentprojectsrelatemainlytoprojectswhoseactivitiesarecurrentlyinprogresstopreparetheprojectforitsintendedsale.Allotherborrowingcostsarerecognisedasanexpenseintheincomestatementintheperiodinwhichtheyareincurred.

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4. SIGNIFICANT ACCOUNTING ESTIMATES AND jUDGEMENTS (CONT’D)

(a) Critical judgements in applying accounting policies (Cont’d)

(iv) Recognition of waiver for debts and interests/profits

AsdisclosedinNote34,duringthefinancialyear,theGroupandtheCompanyhaverecognisedtotalwaiverofdebtsofRM83.096millionandRM4.587millionandtotalwaiverofinterests/profitsofRM62.277millionandRM7.864million respectivelypursuant to theRegularisationPlanasdisclosedinNote41.ThesaidwaiverswererecognisedonthebasisthattheGrouphasfulfilledtheconditionsimposedbytheSecuritiesCommissionpursuanttotheRegularisationPlanandiscurrentlypendingfortheissuanceofRCSLS,BaIDSandRCPStothelenders.ThedirectorsareoftheopinionthattheconversionofthedebtsbytheissuanceofRCSLS,BaIDSandRCPSwillnotinanywayreinstatethedebtsandinterests/profitsthatthelendersagreedtowaive.

(v) Split of land and building elements

TheGroupdeterminesthattheleasepaymentscannotbeallocatedreliablybetweenthelandandbuildingelementsforoneoftheGroup’sproperty.Accordingly,theentireleaseoflandandbuildingsforthesaidpropertyhasbeenclassifiedasafinanceleaseandincludedunderproperty,plantandequipment.

(b) Key sources of estimation uncertainty

Thekeyassumptionconcerningthefutureandotherkeysourcesofestimationuncertaintyatthebalancesheetdate,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyearareasstatedbelow:-

(i) Impairment of goodwill

TheGroupdetermineswhethergoodwillisimpairedatleastonanannualbasis.Thisrequiresanestimationofthevalue-in-useofthecashgeneratingunits(“CGU”)towhichgoodwillisallocated.Estimatingavalue-in-useamountrequiresmanagementtomakeanestimationoftheexpectedfuturecashflowsfromtheCGUandalsotochooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.Thecarryingamountofgoodwillasat31January2009wasRM39.208million(2008:RMNil)asdisclosedinNote9.

(ii) Useful lives of property, plant and equipment and investment properties

TheGroupestimatestheusefullivesofproperty,plantandequipmentandinvestmentpropertiesbasedontheperiodoverwhichtheassetsareexpectedtobeavailableforuse.Theestimatedusefullivesofproperty,plantandequipmentandinvestmentpropertiesarereviewedperiodicallyandareupdatedifexpectationsdifferfrompreviousestimatesduetophysicalwearandtear,technicalorcommercialobsolescenceandlegalorotherlimitsontheuseoftherelevantassets.Inaddition,theestimationoftheusefullivesofproperty,plantandequipmentandinvestmentpropertiesarebasedoninternaltechnicalevaluationandexperiencewithsimilarassets.Itispossible,however,thatfutureresultsofoperationscouldbemateriallyaffectedbychangesintheestimatesbroughtaboutbychangesinfactorsmentionedabove.Theamountsandtimingofrecordedexpensesforanyperiodwouldbeaffectedbychangesinthesefactorsandcircumstances.Areductionintheestimatedusefullivesoftheproperty,plantandequipmentandinvestmentpropertieswouldincreasetherecordedexpensesanddecreasethenon-currentassets.

�� (cont’d)



(b) Key sources of estimation uncertainty (Cont’d)

(iii) Impairment of investment in subsidiaries and recoverability of amount owing by subsidiaries

TheGrouptestsinvestmentinsubsidiariesforimpairmentannuallyinaccordancewithitsaccountingpolicy. Moreregularreviewsareperformedifevents indicatethatthis isnecessary. Costsofinvestmentsinsubsidiarieswhichhaveceasedoperationswereimpaireduptonetassetsofthesubsidiaries.Theimpairmentmadeoninvestmentinsubsidiariesentailsanallowancefordoubtfuldebtstobemadetotheamountowingbythesesubsidiaries.

Significantjudgementisrequiredintheestimationofthepresentvalueoffuturecashflowsgeneratedbythesubsidiaries,whichinvolveuncertaintiesandaresignificantlyaffectedbyassumptionsusedandjudgementmaderegardingestimatesoffuturecashflowsanddiscountrates.ChangesinassumptionscouldsignificantlyaffecttheresultsoftheGroup’stestsforimpairmentofinvestmentinsubsidiaries.

(iv) Impairment of investment in associates

TheGrouptestsinvestmentinassociatesforimpairmentannuallyinaccordancewithitsaccountingpolicy.Moreregularreviewsareperformedifeventsindicatethatthisisnecessary.

Significantjudgementisrequiredintheestimationofthepresentvalueoffuturecashflowsgeneratedbytheassociates,whichinvolveuncertaintiesandaresignificantlyaffectedbyassumptionsusedandjudgementmaderegardingestimatesoffuturecashflowsanddiscountrates.ChangesinassumptionscouldsignificantlyaffecttheresultsoftheGroup’stestsforimpairmentofinvestmentinassociates.

(v) Impairment of non-current assets and current assets

TheGroupreviewsthecarryingamountofitsnon-currentassetsandcurrentassets,whichincludeproperty,plantandequipment,landheldforpropertydevelopment,propertydevelopmentcostsandinvestmentproperties,todeterminewhetherthereisanindicationthatthoseassetshavesufferedanimpairmentlossinaccordancewithrelevantaccountingpoliciesontherespectivecategoryofnon-currentassets.Independentprofessionalvaluationstodeterminethecarryingamountoftheseassetswillbeprocuredwhentheneedarise.

Asat31January2009,theGroupisoftheviewthatthereisnoindicationofimpairmenttotheseassetsandthereforenoindependentprofessionalvaluationwasprocuredbytheGroupduringthecurrentfinancialyeartodeterminethecarryingamountoftheseassets.Thecarryingamountsofproperty,plantandequipment,landheldforpropertydevelopment,propertydevelopmentcostsandinvestmentpropertiesaredisclosedinNotes5,6(a),6(b)and7respectively.

(vi) Property development

TheGrouprecognisespropertydevelopmentrevenueandexpensesintheincomestatementbyusingthestageofcompletionmethod.Thestageofcompletionisdeterminedbytheproportionthatpropertydevelopmentcostsincurredforworkperformedtodatebeartotheestimatedtotalpropertydevelopmentcosts.

Significantjudgementisrequiredindeterminingthestageofcompletion,theextentofthepropertydevelopmentcostsincurred,theestimatedtotalpropertydevelopmentrevenueandcosts,aswellastherecoverabilityofthedevelopmentprojects.Inmakingthejudgement,theGroupevaluatesbasedonpastexperience.Wheretheactualtotalpropertydevelopmentcostsisdifferentfromtheestimatedtotalpropertydevelopmentcosts,suchdifferencewillimpactthepropertydevelopmentprofit/(loss)recognised.

ANNUAL REPORT 2009

(cont’d) ��



(b) Key sources of estimation uncertainty (Cont’d)

(vii) Income taxes

TheGroupissubjecttoincometaxesinnumerousjurisdictions.Significantjudgementisrequiredindeterminingthecapitalallowancesanddeductibilityofcertainexpensesduringtheestimationoftheprovisionfor incometaxes.Therearemanytransactionsandcalculationsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.Wherethefinaltaxoutcomeof thesematters is different from theamounts thatwere initially recorded, suchdifferenceswillimpacttheincometaxanddeferredincometaxprovisionsintheperiodinwhichsuchdeterminationismade.

(viii) Deferred tax assets

Deferredtaxassetsarerecognisedforallunutilisedtaxlossesandunabsorbedcapitalallowancestotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthelossesandcapitalallowancescanbeutilised.Significantmanagementjudgementisrequiredtodeterminetheamountofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.Thetotalcarryingvaluesofunrecognisedunusedtaxlosses,unabsorbedcapitalallowancesandotherdeductibletemporarydifferencesoftheGroupwasRM177.290million(2008:RM187.425million)asdisclosedinNote26.

(ix) Allowance for doubtful debts

TheGroupmakesallowancesfordoubtfuldebtsbasedonanassessmentoftherecoverabilityofreceivables.Allowancesareappliedtoreceivableswhereeventsorchangesincircumstancesindicate that the carrying amountsmay not be recoverable according to the original terms ofreceivables.Significantjudgementisrequiredintheassessmentoftherecoverabilityofreceivableswheretheexpectationisdifferentfromtheoriginalestimate,suchdifferencewillimpactthecarryingvalueofreceivables.

(x) Allowance for writedown in inventories

Reviewsaremadeperiodicallybymanagementondamaged,obsoleteandslow-movinginventories.Thesereviewsrequirejudgementandestimates.Possiblechangesintheseestimatescouldresultinrevisionstothecarryingvalueofinventories.

(xi) Provision for Liquidated and Ascertained Damages

Provision for liquidatedandascertaineddamages (“LAD”) is in respectofprojectsundertakenbycertainsubsidiariesand is recognised forexpectedLADclaimsbasedon the termsof theapplicablesaleandpurchaseagreements.SignificantjudgementisrequiredindeterminingtheamountofprovisionforLADtobemade.TheGroupevaluatestheamountofprovisionrequiredbasedonpastexperience,theindustrynormandtheresultsfromcontinuousdialogsheldwithaffectedpurchaserswhoareseekingindulgenceandextensionoftimetocompletetheaffectedprojectsandwaivetheirLADclaim.Asat31January2009,theamountofprovisionsmadeforLADisdisclosedinNote27.

�0 (cont’d)


5. PROPERTY, PLANT AND EQUIPMENT

Plant and Machinery, Tools and Office Leasehold Equipment, Equipment, Land and Crockery and Furniture Motor Group Buildings Kitchenware and Fittings vehicles Total RM’000 RM’000 RM’000 RM’000 RM’000

Cost

At1February2007 198,932 33,334 19,096 9,045 260,407Additions 1,568 691 276 194 2,729Write-offs (213) – (1,965) – (2,178)Disposals (22) (2,861) (110) (502) (3,495)Disposalofsubsidiaries (166) (2) – (208) (376)

At31January2008 200,099 31,162 17,297 8,529 257,087

Additions 1,474 707 68 – 2,249Acquisitionofsubsidiaries – 1,646 – – 1,646Disposals (58) (2,942) (160) (286) (3,446)Reclassifiedtoinvestment properties(Note7) (61,105) – – – (61,105)

At31January2009 140,410 30,573 17,205 8,243 196,431

Accumulated Depreciation

At1February2007 16,050 22,947 16,225 8,727 63,949Chargeforthefinancialyear 3,763 2,826 738 259 7,586Write-offs (213) – (1,888) – (2,101)Disposals (22) (2,646) (70) (502) (3,240)Disposalofsubsidiaries (76) – – (208) (284)Reclassification – 76 (76) – –

At31January2008 19,502 23,203 14,929 8,276 65,910 Chargeforthefinancialyear 3,651 3,124 725 102 7,602Acquisitionofsubsidiaries – 1,476 – – 1,476Disposals – (2,419) (126) (178) (2,723)Reclassifiedtoinvestment properties(Note7) (4,028) – – – (4,028)

At31January2009 19,125 25,384 15,528 8,200 68,237

Net Book value

At31January2008 180,597 7,959 2,368 253 191,177

At31January2009 121,285 5,189 1,677 43 128,194

ANNUAL REPORT 2009

(cont’d) �1


5. PROPERTY, PLANT AND EQUIPMENT (CONT’D)

Office Leasehold Equipment, Land and FurnitureCompany Buildings and Fittings Renovation Total RM’000 RM’000 RM’000 RM’000

Cost

At1February2007/ 31January2008 1,107 411 4,850 6,368Additions – – 4 4

At31January2009 1,107 411 4,854 6,372


At1February2007 419 411 3,567 4,397Chargeforthefinancialyear 28 – 244 272

At31January2008 447 411 3,811 4,669Chargeforthefinancialyear 27 – 199 226

At31January2009 474 411 4,010 4,895

Net Book value

At31January2008 660 – 1,039 1,699

At31January2009 633 – 844 1,477

�� (cont’d)



a) Leaseholdlandandbuildingsconsistofthefollowing:

Hotel and Other Land andGroup Buildings Renovation Total RM’000 RM’000 RM’000

Cost

At1February2007 191,771 7,161 198,932Additions – 1,568 1,568Write-offs – (213) (213)Disposals – (22) (22)Disposalofsubsidiaries (166) – (166)

At31January2008 191,605 8,494 200,099Additions – 1,474 1,474Disposals (58) – (58)Reclassifiedtoinvestmentproperties (Note7) (61,105) – (61,105)

At31January2009 130,442 9,968 140,410


At1February2007 11,666 4,384 16,050Chargeforthefinancialyear 3,237 526 3,763Write-offs – (213) (213)Disposals – (22) (22)Disposalofsubsidiaries (76) – (76)Reclassification (1) 1 –

At31January2008 14,826 4,676 19,502Chargeforthefinancialyear 3,008 643 3,651Reclassifiedtoinvestmentproperties (Note7) (4,028) – (4,028)

At31January2009 13,806 5,319 19,125

Net Book value At31January2008 176,779 3,818 180,597

At31January2009 116,636 4,649 121,285

ANNUAL REPORT 2009

(cont’d) ��



b) Thenetbookvalueofproperty,plantandequipmentchargedtofinancialinstitutionsforborrowingsasdisclosedinNote23areasfollows:

Group Company 2009 2008 2009 2008 RM’000 RM’000 RM’000 RM’000

Leaseholdlandandbuildings 116,272 176,357 633 660

6. LAND HELD FOR PROPERTY DEvELOPMENT AND PROPERTY DEvELOPMENT COSTS

(a) Land Held for Property Development

Freehold Leasehold Development Land Land Costs Total RM’000 RM’000 RM’000 RM’000

Group

Cost At1February2007 143,458 300,807 711,204 1,155,469Additions – 2 36,251 36,253Disposalofsubsidiaries duringthefinancialyear – – (55,807) (55,807)Write-offs – (7,035) (2,553) (9,588)Transferfromproperty developmentcosts – 1,248 1,926 3,174

At31January2008 143,458 295,022 691,021 1,129,501

Additions – 450 7,851 8,301Disposals (123) – (62) (185)Acquisitionofsubsidiaries 7 – 772 779Transfertoproperty developmentcosts (612) – (6,580) (7,192)

At31January2009 142,730 295,472 693,002 1,131,204

Freehold Development Land Costs Total RM’000 RM’000 RM’000

Company

Cost At31January2008/2009 17,987 139 18,126

�� (cont’d)


6. LAND HELD FOR PROPERTY DEvELOPMENT AND PROPERTY DEvELOPMENT COSTS (CONT’D)

(b) Property Development Costs


At1February2008/2007: -Freeholdland 276,994 358,775 86,576 87,172 -Leaseholdland 482,368 489,116 – – -Developmentcosts 4,272,438 4,085,860 81,550 35,250

5,031,800 4,933,751 168,126 122,422

Disposalofsubsidiaries duringthefinancialyear: -Freeholdland – (9,029) – – -Developmentcosts – (33,204) – –

– (42,233) – –

Reversalindevelopment costsofcompletedprojects duringthefinancialyear: -Freeholdland – (72,156) – – -Leaseholdland (8,600) (5,500) – – -Developmentcosts (13,080) (20,787) – –

(21,680) (98,443) – –

Costsincurredduring thefinancialyear: -Leaseholdland 5,500 – – – -Developmentcosts 248,852 253,166 – 46,300

254,352 253,166 – 46,300

Disposalduringthe financialyear: -Freeholdland – (596) – (596) -Leaseholdland (243) – – – -Developmentcosts (71) – – –

(314) (596) – (596)

ANNUAL REPORT 2009

(cont’d) ��



(b) Property Development Costs (Cont’d)


Reversalofcostsduring thefinancialyear: -Developmentcosts (1,844) – – –

Transfers: -From/(To)landheld forpropertydevelopment 7,192 (3,174) – – -Toinventories (365) (10,671) – –

6,827 (13,845) – –

Costsrecognisedin incomestatements: -At1February 2008/2007 (3,792,715) (3,713,300) (72,509) (72,509) -Disposalof subsidiariesduring thefinancialyear – 35,608 – – -Adjustmentsto completedprojects duringthefinancialyear 21,680 98,443 – – -Recognisedduring thefinancialyear (261,439) (213,466) – –

-At31January (4,032,474) (3,792,715) (72,509) (72,509)

Foreseeablelosses: -At1February 2008/2007 (57,538) (56,234) – – -Reversal/(Recognised) duringthefinancialyear 13,030 (1,304) – –

-At31January (44,508) (57,538) – –

At31January 1,192,159 1,181,547 95,617 95,617

�� (cont’d)



(c) ThefollowingarechargedassecurityforborrowingsoftheGroupasdisclosedinNote23:

2009 2008 RM’000 RM’000

Freeholdland 391,076 391,192Leaseholdland 727,072 725,103Developmentcosts 1,137,279 1,131,264

2,255,427 2,247,559

(d) CertainproceedsfromsalesofdevelopmentpropertiesofasubsidiaryoftheGrouphasbeensoldto

athirdpartyundertheIslamicAssetsBackedSecuritisation(“ABS”)arrangementasdisclosedinNote30.

(e) CertainproceedsfromsalesofdevelopmentpropertiesofasubsidiaryhasbeenassignedtoathirdpartyundertheBaiBithamanAjilIslamicDebtSecurities(“BaIDS”)asdisclosedinNote23.

(f) Certaintitledeedsinrespectofthelandarenotregisteredunderthesubsidiaries’namesasthesetitledeedswillbetransferreddirectlytohousebuyersuponthesaleoftheproperties.

(g) Certainlandheldfordevelopmentoftwosubsidiariesarechargedassecuritiesforbankingfacilitiesgrantedtoacorporateshareholder,KumpulanEuroplusBerhad.

(h) Includedinthedevelopmentcostsforthefinancialyearare:

(i) constructioncostschargedbythefollowingrelatedparties:

Group 2009 2008 RM’000 RM’000

IJMCorporationBerhadandits subsidiaries(“IJMGroup”) 208,652 179,574KumpulanEuroplusBerhad(“KEB”) anditssubsidiaries(“KEBGroup”) 262 938

ThenatureoftherelationshipwiththerelatedpartiesisdisclosedinNote45.

(ii) interestcapitalisedduringthefinancialyearfortheGroupamountedtoapproximatelyRM3.264million(2008:RM9.609million)asdisclosedinNote33.

ANNUAL REPORT 2009

(cont’d) ��


7. INvESTMENT PROPERTIES

FreeholdGroup Land Buildings Total RM’000 RM’000 RM’000

Cost

At1February2007/31January2008 4,900 96,903 101,803Acquisitionofsubsidiaries – 65,090 65,090Disposalduringthefinancialyear – (680) (680)Reclassifiedfromproperty,plantand equipment(Note5) – 61,105 61,105

At31January2009 4,900 222,418 227,318


At1February2007 – 181 181Chargeforthefinancialyear – 106 106

At31January2008 – 287 287Acquisitionofsubsidiaries – 10,263 10,263Disposalduringthefinancialyear – (147) (147)Chargeforthefinancialyear – 4,102 4,102Reclassifiedfromproperty,plantand equipment(Note5) – 4,028 4,028

At31January2009 – 18,533 18,533

Impairment Losses

At1February2007/31January2008/ 31January2009 – 17,000 17,000

Net Book value

At31January2008 4,900 79,616 84,516

At31January2009 4,900 186,885 191,785

InvestmentpropertieshavebeenchargedforborrowingsasdisclosedinNote23.

�� (cont’d)


8. PREPAID LEASE PAYMENTS Group 2009 2008 RM’000 RM’000

Cost: At31January 16,458 16,458

Accumulatedamortisation: At1February2008/2007 5,332 4,637 Chargeforthefinancialyear 695 695 At31January (6,027) (5,332)

Net 10,431 11,126

PrepaidleasepaymentshavebeenchargedforcertainborrowingsasdisclosedinNote23.

9. GOODwILL

Group 2009 2008 RM’000 RM’000

At1February2008/2007 – –Arisingfromnewsubsidiariesacquired(Note10(b)) 39,208 –

At31January 39,208 –

10. INvESTMENT IN SUBSIDIARIES

Company 2009 2008 RM’000 RM’000

Unquotedshares,atcost 502,011 502,011Accumulatedimpairmentlosses (157,210) (157,210)

344,801 344,801

DetailsofsubsidiariesaredisclosedinNote42.

ANNUAL REPORT 2009

(cont’d) ��


10. INvESTMENT IN SUBSIDIARIES (CONT’D)

(a) Amount owing by subsidiaries

Company 2009 2008 RM’000 RM’000

Amountowingbysubsidiaries 551,429 561,532Less:Allowancefordoubtfuldebts (272,977) (292,581)

278,452 268,951

Amountowingby/(to)subsidiaries,whicharosefromnon-tradetransactions,areunsecuredandhavenofixedtermsofrepayment.

(b) Acquisition of subsidiaries during the current financial year

On20November2008,theRM76,332,2755-Year1%IrredeemableConvertibleUnsecuredLoanStocks(“ICULS”)issuedtotheCompany’ssubsidiary,EuroplusBerhadbyVenueVentureSdn.Bhd.(“VVSB”)werefullyconvertedinto76,332,275newordinarysharesofRM1.00eachofVVSB.

UponconversionoftheICULS,VVSBandits3subsidiariesnamely,BukitKhazanahSdn.Bhd.,PandanLakeClubBerhadandSaujanaUkaySdn.Bhd.(formerly known as Gemar Megaprima Sdn. Bhd.)becameindirectsubsidiariesoftheCompany.

TheeffectsoftheabovementionedacquisitionsonthefinancialresultsoftheGroupfromthedateofacquisitionto31January2009wereasfollows:

2009 RM’000

Revenue 387Costofsales (177)

Grossprofit 210Otherincome 62Administrativeandotherexpenses (283)

(11)Minorityinterest 1

IncreaseinlossattributabletoequityholdersoftheCompany (10)

�0 (cont’d)



(b) Acquisition of subsidiaries during the current financial year (Cont’d)

TheeffectsoftheseacquisitionsonthefinancialpositionoftheGroupasat31January2009wereasfollows:

2009 RM’000 Property,plantandequipment 165Landheldforpropertydevelopment 779Investmentproperties 54,605Goodwill 2,338Tradereceivables 7,072Otherreceivables,depositsandprepaidexpenses 4,938Cashandbankbalances 581Borrowings (415)Tradepayables (73)Otherpayablesandaccruedexpenses (14,141)Minorityinterest (31)

Netassets 55,818

Thefairvalueoftheassetsacquiredandliabilitiesassumedfromtheacquisitionofthesubsidiarieswereasfollows:

At acquisition date RM’000

Netassetsacquired: Property,plantandequipment 170 Landheldforpropertydevelopment 779 Investmentproperties 54,827 Goodwill 39,208 Currenttaxassets 103 Tradereceivables 6,497 Otherreceivables,depositsandprepaidexpenses 74,027 Cashandbankbalances 518 Borrowings (415) Tradepayables (74) Otherpayablesandaccruedexpenses (99,138) Minorityinterest (170)

Totalconsideration 76,332 Purchaseconsiderationsettledviatheconversion oftheinvestmentinICULS (76,332) Less:Cashandcashequivalentsofsubsidiariesacquired (518)

Netcashinflowarisingfromacquisitionofsubsidiaries (518)

ANNUAL REPORT 2009

(cont’d) �1



(c) Disposal and deconsolidation of subsidiaries in the previous financial year

On 28 February 2007, a subsidiary, Noble Rights Sdn. Bhd., was wound-up. As such, it has beendeconsolidatedfromtheGroup’sfinancialstatements.

On28June2007,asubsidiary,LarutOverseasVenturesSdn.Bhd.disposed1,515,000ordinarysharesofHK$1each,representing50%equityinterest,inLarutLeisureEnterprise(HongKong)Limited(“LLE”)forHK$1.LLEceasedtobeasubsidiaryoftheGroupandbecamea49.99%ownedassociatecompanyoftheGroupwhenthetransferofshareswaseffectedon21December2007.

TheeffectofthedisposalanddeconsolidationonthefinancialresultsoftheGroupforthefinancialperioduptothedateofdisposalanddeconsolidationareasfollows:

2008 RM’000

Interestincome *Otheroperatingexpenses (17)Financecosts 5

Lossbeforetax (12)Incometaxexpense **

(12)Minorityinterests 11

IncreaseinGrouplossattributabletoshareholders (1)

* RepresentsRM52.** RepresentsRM14.

�� (cont’d)



(c) Disposal and deconsolidation of subsidiaries in the previous financial year (Cont’d)

TheeffectofthedisposalanddeconsolidationonthefinancialpositionoftheGroupasat31January2008areasfollows:

At disposal date RM’000

Landheldforpropertydevelopment(Note6) 55,807Property,plantandequipment(Note5) 92Propertydevelopmentcosts 6,625Inventories 8,838Tradereceivables 214Otherreceivables,depositsandprepaidexpenses 1,614Taxrecoverable 113Fixeddeposits 1,129Cashandbankbalances 183Tradepayables (8,495)Otherpayables (30,817)Amountduetorelatedcompanies (26,483)Provisionforfuturecoststocomplete (5,242)Provisionforliabilities (2,481)Minorityinterests (13,196)Transferfromforeignexchangereserve (6,375)

Fairvalueoftotalnetliabilities (18,474)GainondisposaltotheGroup 18,474

Proceedsfromdisposal ***Less:Cashandcashequivalentsofsubsidiaries disposedanddeconsolidated (1,312)

Netcashoutflowarisingondisposalanddeconsolidation,representing cashandcashequivalentsofsubsidiariesdisposedanddeconsolidated (1,312)

*** RepresentsRM0.43.

11. INvESTMENT IN ASSOCIATES

Group 2009 2008 RM’000 RM’000

Unquotedshares,atcost 7,695 7,695Shareofpost-acquisitionreserves (7,695) (7,695)

– –

ANNUAL REPORT 2009

(cont’d) ��


11. INvESTMENT IN ASSOCIATES (CONT’D)

(a) Detailsofassociatesareasfollows:

Financial Effective Equity Interest PrincipalName of Company Year End 2009 2008 Activities % %

Incorporated in Malaysia

BeruntungTransportCity 31January 30.60 30.60 Dormant Sdn.Bhd.

Incorporated in Hong Kong

LarutLeisureEnterprise 31January 49.99 49.99 Investmentholding (HongKong)Limited*

Incorporated in The People’s Republic of China

JilinDingtaiEnterprise 31December 49.99 29.99 Propertydevelopment DevelopmentCo.Limited*

Incorporated in Cambodia

CambodiaResources 31January 49.00 49.00 Dormant Import-Export CompanyLimited#*

Parkgrove(Cambodia) 31January 49.00 49.00 Dormant Pte.Ltd.#*

NobleHouseInvestment 31January 49.00 49.00 Dormant (Cambodia)Pte.Ltd.#*

* AuditedbyanotherfirmsofcharteredaccountantsotherthanMessrs.BakerTillyMonteiroHeng.

# Thefinancialstatementsandauditors’reportoftheassociatesarenotavailable.BakerTillyMonteiroHengisnottheauditorsoftheseassociates.Thesaidinvestmentshavebeenfullywrittendowninpriorfinancialyears.Inviewofthis,theeffectofnotequityaccountingforinvestmentintheassociatesisnotmaterialtotheGroup.

ThefinancialstatementsoftheaboveassociatesarecoterminouswiththoseoftheGroup,exceptforJilinDingtaiEnterpriseDevelopmentCo.Limitedwhichhasafinancialyearendof31December.Forthepurposeofapplyingtheequitymethodofaccounting,thefinancialstatementsofJilinDingtaiEnterpriseDevelopmentCo.Limitedforthefinancialyearended31December2008havebeenusedandappropriateadjustmentshavebeenmadefortheeffectsofsignificanttransactionsbetween31December2008and31January2009.

(b) Amountowingbyassociates,whicharosefromnon-tradetransactions,areunsecuredandhavenofixedtermsofrepayment.

�� (cont’d)


11. INvESTMENT IN ASSOCIATES (CONT’D)

(c) Thesummarisedfinancialinformationoftheassociatesisasfollows:

Group 2009 2008 RM’000 RM’000

Assets and liabilities Non-currentassets 76,470 37,129Currentassets 25,395 28,348

Totalassets 101,865 65,477

Non-currentliabilities (72,303) (17,005)Currentliabilities (3,540) (39,373)

Totalliabilities (75,843) (56,378)

Results(Expenses)/Income,includingfinancecosts (2,250) (316)

12. INTEREST IN jOINTLY CONTROLLED ENTITIES

Group 2009 2008 RM’000 RM’000

Unquotedshares,atcost 10,510 10,500Shareofpost-acquisitionreserves (1,292) (423)

9,218 10,077

(a) Detailsofjointlycontrolledentities,whichareincorporatedinMalaysia,areasfollows:

Financial Effective Equity Interest PrincipalName of Company Year End 2009 2008 Activities % %

AstakaTegasSdn.Bhd.* 31March 50 50 Propertydevelopment

SierraUkaySdn.Bhd.* 31March 49.99 49.99 Propertydevelopment

GoodDebutSdn.Bhd.* 31March 50 50 Propertydevelopment

CekapTropikalSdn.Bhd.* 31March 49.99 49.99 Propertydevelopment


ThefinancialstatementsoftheabovejointlycontrolledentitiesarenotcoterminouswiththoseoftheGroup.Forthepurposeofapplyingtheequitymethodofaccounting,thefinancialstatementsofthesejointlycontrolledentitiesforthefinancialyearended31March2008havebeenusedandappropriateadjustmentshavebeenmadefortheeffectsofsignificanttransactionsbetween31March2008and31January2009.

ANNUAL REPORT 2009

(cont’d) ��


12. INTEREST IN jOINTLY CONTROLLED ENTITIES (CONT’D)

(b) Amountowingby/(to)jointlycontrolledentities,whicharosefromnon-tradetransactions,areunsecured,bearinterestattheratesrangingfrom7.5%to8.5%(2008:7.75%to8.75%)andhavenofixedtermsofrepayment.

(c) TheGroup’saggregateshareofthecurrentassets,non-currentassets,currentliabilities,non-currentliabilities,incomeandexpensesofthejointlycontrolledentitiesareasfollows:

Group 2009 2008 RM’000 RM’000

Assets and liabilitiesNon-currentassets 10,309 493Currentassets 86,204 72,306

Totalassets 96,513 72,799

Non-currentliabilities (59,041) (30,000)Currentliabilities (32,934) (32,722)

Totalliabilities (91,975) (62,722)

Results(Expenses)/Income,includingfinancecosts (869) 249

13. OTHER INvESTMENT

Group 2009 2008 RM’000 RM’000

At cost: 1%IrredeemableConvertibleUnsecuredLoanStock(“ICULS”) – 76,332

TheICULSnominalvalueatRM1.00each,areconstitutedbyaTrustDeeddated3November2003betweenVenueVentureSdn.Bhd.(“VVSB”)andthetrusteefortheholderofICULS.

ThemainfeaturesoftheICULSareasfollows:

(a) TheICULSshallbeforaperiodoffiveyearsfromthedateofissue.

(b) TheICULSshallnotberedeemableforcash.AlloutstandingICULSshallbeconvertedintonewVVSBsharesonthematuritydate.

(c) TheICULSmay,attheholder’soption,beconvertedintonewVVSBsharesattheconversionpriceduringthetenureofICULS.Uponmaturity,anyICULSnotconvertedshallbeconvertedautomaticallyintonewVVSBsharesattheconversionprice.

(d) ThenewVVSBsharestobeissuedpursuanttotheconversionoftheICULSshall,uponallotmentandissue,rankparipassuinallrespectswiththeexistingVVSBsharesexceptthattheyshallnotbeentitledtoanydividends,rights,allotmentsand/orotherdistributionswheretheentitlementdateofwhichprecedesthedateofallotmentofthenewVVSBshares.

On20November2008,theRM76,332,275ICULSwerefullyconvertedinto76,332,275newVVSBordinarysharesatRM1.00each.

�� (cont’d)


14. SINKING FUNDS HELD BY TRUSTEES

The sinking funds are held by trustees for the redemption and/or servicing of the following financingfacilities:

Group 2009 2008 RM’000 RM’000

MurabahahNotesIssuanceFacility(“MuNIF”)(Note23(e)) 611 22SukukAl-Ijarah(Note23(i)) 8,112 9,779

8,723 9,801

15. INvENTORIES


Atcost: Completedpropertiesheld forsale 91,656 96,215 5,831 5,831 Finishedgoodsandconsumables 1,515 1,296 – –

93,171 97,511 5,831 5,831

Less:Allowancefor writedownininventories (24,405) (22,788) (144) (144)

68,766 74,723 5,687 5,687

16. TRADE RECEIvABLES

Group 2009 2008 RM’000 RM’000

Tradereceivables 100,274 97,424Less:Allowancefordoubtfuldebts (7,391) (8,756)

92,883 88,668

ANNUAL REPORT 2009

(cont’d) ��


16. TRADE RECEIvABLES (CONT’D)

(a) Includedintradereceivablesareamountsduefromrelatedpartiesasfollows:

Group 2009 2008 RM’000 RM’000

Agrocon(M)Sdn.Bhd. 5,397 5,306RadiantPillarSdn.Bhd. 6,000 –KumpulanEuroplusBerhadanditssubsidiaries(“KEBGroup”) 3,147 546

ThenatureoftherelationshipwiththeaboverelatedpartiesisdisclosedinNote45.

(b) TheGroup’snormaltradecredittermsrangesfrom14daysto60days.Othercredittermsareassessedandapprovedonacase-by-casebasis.

TheGrouphasnosignificantconcentrationofcreditriskthatmayarisefromexposurestoasingledebtorortogroupsofdebtors.

(c) IncludedintradereceivablesoftheGroupareamountstotallingRM24.445million(2008:RM37.223million)duefromcertaincontractorsoftheGroup.Thedirectorsareoftheopinionthatthesereceivablesarefullyrecoverable.

17. OTHER RECEIvABLES, DEPOSITS AND PREPAID EXPENSES


Otherreceivables 180,043 281,095 23,713 31,023Less:Allowancefordoubtfuldebts (86,396) (112,451) (11,208) (7,658)

93,647 168,644 12,505 23,365Refundabledeposits 27,913 23,650 54 69Prepaidexpenses 153 195 – –Taxrecoverable 2,476 2,343 2,015 2,082

124,189 194,832 14,574 25,516

IncludedinotherreceivablesoftheGroupare:

(a) AnamountofapproximatelyRM42.071million in the2008financialyear representingdepositsandinstallmentspaidtoathirdparty(“landvendor”)foraproposedpurchaseoflandbyMaxisegarSdn.Bhd.(“MSSB”),awholly-ownedsubsidiaryoftheCompany.MSSBhasfiledalegalsuitagainstthesaidlandvendortorecovertheamountasMSSBcouldnotobtainaloantocompletetheSaleandPurchaseAgreementduetofrustratingeventsintervening.Judgementwasdeliveredinfavourofthethirdpartytogetherwithinterestandcost.PursuanttotheFederalCourt’sdecision,MSSBhasfullywrittenoffthesaiddepositduringthefinancialyearandafurtherprovisionforjudgementsumofRM38.325millionrepresentinginterestandcostasdisclosedinNote27.

(b) AnamountowingbyVenueVentureSdn.Bhd.(“VVSB”)inthe2008financialyearwasRM50.087million.During the current financial year, VVSBand its subsidiaries became the indirect subsidiaries of theCompanybyvirtueoftheconversionofVVSB’sICULSintonewordinarysharestoitsholder,EuroplusBerhad,asubsidiaryoftheCompany.

�� (cont’d)


17. OTHER RECEIvABLES, DEPOSITS AND PREPAID EXPENSES (CONT’D)

(c) AnamountowingbyathirdpartyofRM23.409million(2008:RM28.369million)pursuanttotheissuanceofSukukAl-Ijarah(“Sukuk”)whichissecuredbythesaidthirdparty’sproperty.

(d) DeferredexpenditureincurredontheissuanceofSukukdeferredoverthetenureofSukukofRM1.441million(2008:RM1.801million).

(e) Miscellaneous charges receivables from house purchasers of RM7.896 million (2008: RM7.269million).

Includedinotherreceivablesareamountsduefromrelatedpartiesasfollows:-

Group 2009 2008 RM’000 RM’000

IJMGroup 92 –RadiantPillarSdn.Bhd. 17 76

109 76


18. CASH AND CASH EQUIvALENTS


Housingdevelopmentaccounts(“HDA”) 11,035 10,301 – –Cashinhandandbankbalances 6,095 11,541 37 83Depositswithlicensedbanks 387 439 – 350

Cashandbankbalances 17,517 22,281 37 433Less:Bankoverdrafts(Note23) (6,515) (7,512) (4,473) (5,714)Balancespledgedassecurity valuestolicensedbanks(Note23) -HDA (10,110) (8,887) – – -bankbalances (1,896) (3,618) – – -depositswithlicensedbanks (167) (10) – –

Cashandcashequivalents (1,171) 2,254 (4,436) (5,281)

The housing development accounts of the Group are maintained pursuant to Section 7A of the HousingDevelopment (Control and Licensing) Act, 1966. These accounts, which consist of monies received frompurchasers,areforthepaymentofpropertydevelopmentexpenditureincurredandarerestrictedfromuseinotheroperations.Thesurplusmonies,ifany,willbereleasedtotherespectivesubsidiariesuponthecompletionofthepropertydevelopmentprojectsandafterallpropertydevelopmentexpenditurehavebeenfullysettled.

ANNUAL REPORT 2009

(cont’d) ��


19. SHARE CAPITAL

Group and Company Number of Shares Amount 2009 2008 2009 2008 ’000 ’000 RM’000 RM’000

AuthorisedOrdinarysharesofRM1.00each 939,000 939,000 939,000 939,000Redeemableconvertible preferenceshares(“RCPS”) ofRM0.01each 100,000 100,000 1,000 1,000Irredeemableconvertible preferenceshares(“ICPS”) ofRM0.10each 600,000 600,000 60,000 60,000

Total 1,639,000 1,639,000 1,000,000 1,000,000

Issued and fully paidAt1February2008/2007 OrdinarysharesofRM1.00each 629,183 629,183 629,183 629,183Movementduringthefinancialyear ConversionofICPS(Note(a)) 14,397 – 14,397 – Capitalreduction(Note(c)) – – (257,432) –

At31January OrdinarysharesofRM0.60 (2008:RM1.00)each 643,580 629,183 386,148 629,183

ICPSofRM0.10each(Note20): At1February2008/2007 143,963 143,963 14,397 14,397 Conversionduringthe financialyear(Note(a)) (143,963) – (14,397) –

At31January – 143,963 – 14,397

Total 643,580 773,146 386,148 643,580

Less:Liabilitycomponent ofICPS(Note23) – (565)

Total 386,148 643,015

(a) Duringthefinancialyear,theissuedandpaid-upordinarysharecapitaloftheCompanywasincreasedfromRM629,183,170toRM643,579,444viatheissuanceof14,396,274newordinarysharesofRM1.00eachpursuanttotheconversionof143,962,7465-Year5%IrredeemableConvertiblePreferenceSharesofRM0.10each(“ICPS”)ataconversionpriceofRM1.00perordinaryshareofRM1.00eachintheCompany.

(b) ThenewordinarysharesissuedduringthefinancialyearpursuanttotheconversionoftheICPSrankparipassuinallrespectswiththeexistingordinarysharesoftheCompanyexceptthattheholdersthereofshallnotbeentitledtoanydividends,rights,allotmentsand/orotherdistributionswheretheentitlementdateofwhichprecedesthedateofallotmentofthenewordinarysharesoftheCompany.

�0 (cont’d)


19. SHARE CAPITAL (CONT’D)

(c) Pursuanttoacourtorderdated5December2008,theissuedandpaid-upordinarysharecapitaloftheCompanywasreducedfromRM643,579,444comprising643,579,444ordinarysharesofRM1.00eachtoRM386,147,666comprising643,579,444ordinarysharesofRM0.60eachbythecancellationofRM0.40parvaluefromeachordinaryshareinaccordancewiththeRegularisationPlanoftheCompanyasfurtherdisclosedinNote41.

(d) Inthepreviousfinancialyear,theICPShavebeensplitbetweentheliabilitycomponentandtheequitycomponent,representingthefairvalueoftheconversioncomponent.ThemainfeaturesoftheICPSaredisclosedinNote20.

(e) Subsequent to thefinancialyearend,on16February2009, theCompanyhadcompleted thesharesplitinvolvingthesubdivisionofeveryone(1)existingordinaryshareofRM0.60eachintheCompany(aftertheCapitalReductionasmentionedin(a)above)intothree(3)ordinarysharesofRM0.20eachintheCompany(“ShareSplit”).AsaresultoftheShareSplit,643,579,444ordinarysharesofRM0.60eachintheCompanyhavebeensubdividedinto1,930,738,332ordinarysharesofRM0.20eachintheCompany.Concurrently,theauthorisedsharecapitaloftheCompanyhadincreasedtoRM2,000,000,000dividedinto8,000,000,000ordinarysharesofRM0.20each,1,500,000,000redeemableconvertiblepreferencesharesofRM0.20eachand1,000,000,000irredeemableconvertiblepreferencesharesofRM0.10each.

20. 5-YEAR 5% IRREDEEMABLE CONvERTIBLE PREFERENCE SHARES

Themainfeaturesofthe5-Year5%IrredeemableConvertiblePreferenceSharesofRM0.10(“ICPS”)eachinissueduringthelastfinancialyearareasfollows:

(a) TheICPSshallmatureupontheexpiryofthefiveyearperiodfromthedateofissue(“MaturityDate”).

(b) TheICPSwillnotberedeemableforcash.AlloutstandingICPSwillbeconvertedintonewordinarysharesontheMaturityDate.

(c) TheICPSmaybeconvertedintonewordinaryshares,attheholder’soption,attheConversionPriceduringthetenureoftheICPS.Uponmaturity,anyICPSnotconvertedshallautomaticallybeconvertedintonewordinarysharesattheConversionPriceofRM1.00perordinaryshareofRM1.00eachintheCompany.

(d) DividendspayabletoholdersofICPSshallrankinprioritytoalldividendspayabletoholdersofRCPSandholdersofordinarysharesoftheCompany.IntheeventofthewindinguporliquidationoftheCompany,theICPSshallrankaheadofordinarysharesbutshallrankparipassuinallrespectswiththeRCPS.

(e) TheICPShavebeensplitbetweentheliabilitycomponentandtheequitycomponent,representingthefairvalueoftheconversioncomponent.

(f) ThenewordinarysharestobeissuedpursuanttotheconversionoftheICPSshall,uponallotmentandissue,rankparipassuinall respectswiththeordinarysharesthenin issueexceptthattheholdersofICPSshallnotbeentitledtoanydividends,rights,allotmentsand/orotherdistributionswheretheentitlementdateofwhichprecedesthedateofallotmentofthenewordinaryshares.

Duringthefinancialyear,thebalanceoftheICPSoutstandingwasconvertedto14,396,274ordinarysharesofRM1.00eachontheMaturityDate,2January2009.

ANNUAL REPORT 2009

(cont’d) �1


21. TREASURY SHARES

Group and Company Number of Shares Amount ’000 RM’000

At1February2007/31January2008 OrdinarysharesofRM1.00each 879 844Capitalreduction(Note19(c)) – (351)

At31January2009 OrdinarysharesofRM0.60each 879 493

22. RESERvES


CapitalReserve: Capitalisationofretained profitsforbonusissueof ordinarysharesbysubsidiaries 6,392 6,392 – – Redemptionofpreference sharestoordinaryshares 4,809 4,809 – –

11,201 11,201 – –SharePremium – 124,551 – 124,551Foreignexchangereserve 13,153 26,346 – –Accumulatedlosses (19,072) (459,809) (60,618) (446,527)

5,282 (297,711) (60,618) (321,976)

Pursuant to theRegularisationPlanasdisclosed inNote41andthesubsequentapprovalby theordinaryshareholdersoftheCompanyandbyorderofcourtgranted,theentiresharepremiumaccountwascreditedtotheaccumulatedlossesaccountduringthefinancialyear.

�� (cont’d)


23. BORROwINGS


(a) Current

(i) Secured:Revolvingcredits-Relatedparty(Note45) 29,761 30,285 – –-Financialinstitutions 83,135 86,778 42,526 46,871 112,896 117,063 42,526 46,871

Unsecured:Bankoverdrafts(Note18) 6,515 7,512 4,473 5,714Revolvingcredits-Relatedparty(Note45) 24,699 21,151 24,699 21,151

144,110 145,726 71,698 73,736

(ii) Non-currentdue within12months

Secured:BaIDS 117,000 130,000 – –MuNIF 171,000 190,000 – –Termandbridgingloans 233,256 262,882 4,512 14,512SukukAl-Ijarah 1,207 1,207 – –

522,463 584,089 4,512 14,512

(iii) Hirepurchasepayables(Note24) – 16 – –

Total 666,573 729,831 76,210 88,248

ANNUAL REPORT 2009

(cont’d) ��


23. BORROwINGS (CONT’D)


(b) Non-current

Secured:BaIDS 117,000 130,000 – –Duewithin12months (117,000) (130,000) – –

– – – –

MuNIF 171,000 190,000 – –Duewithin12months (171,000) (190,000) – –

– – – –

Termandbridgingloans 233,256 262,882 4,512 14,512Duewithin12months (233,256) (262,882) (4,512) (14,512)

– – – –

SukukAl-Ijarah 87,065 88,272 – –Duewithin12months (1,207) (1,207) – – 85,858 87,065 – –

Unsecured:Liabilitycomponentof ICPS(Note19) – 565 – 565

Hirepurchase payables(Note24) – – – –

Total 85,858 87,630 – 565

(c) The rangeofeffective interest ratesorpurchase yieldduring thefinancial year forborrowings isasfollows:

Group Company 2009 2008 2009 2008 % % % %

Revolvingcredits 6.83-10.50 7.95-9.75 9.00-9.75 9.00-9.75Bankoverdrafts 7.00-9.00 8.70-9.00 8.75-9.00 9.00BaIDS 8.21 7.00-7.50 – –MuNIF 5.75 5.00 – –Termandbridgingloans 6.60-16.00 7.25-12.00 9.00 7.25-9.00SukukAl-Ijarah 5.20-9.30 5.84-9.00 – –

�� (cont’d)



(d) TheCompanyhasprovidedcorporateguaranteesforunsecuredbankoverdraftsofitssubsidiary.

ThesecuredrevolvingcreditsoftheGroupandoftheCompanyaresecuredbyfixedandfloatingchargesovercertainassetsoftheGroupandoftheCompanyasdisclosedinNotes5and6.

(e) TheMuNIFoftheGroupissecuredbythefollowing:

(i) MemorandumofChargeovertheoperatingaccounts(includingHousingDevelopmentAccounts)ofcertainsubsidiaries;

(ii) Assignmentofproceedsfromsaleofthedevelopmentpropertiesofcertainsubsidiaries;

(iii) Debenturescreatingafixedandfloatingchargeoverassetsofcertainsubsidiaries;and

(iv) Third party first legal charge on certain subsidiaries’ operating accounts (including HousingDevelopmentAccounts)asreferredtoinNote18.

PursuanttotheRegularisationPlanasdisclosedinNote41,on31December2008,theCompanyanditssubsidiaryhadenteredintoaDebtSettlementAgreement(“DebtSettlement”)withtheholdersofMuNIF.EachoftheholdersofMuNIFagreestoacceptasfullandfinalsettlementanddischargeoftheirrespective indebtedness, theexisting facilities, theguaranteesandanyandallsecurities in respectthereof,viatheissuanceofRM171.0millionnominalvalueofzerocoupon5-yearredeemableconvertiblesecuredloanstocks(“RCSLS”)at100%ofitsnominalvalueonthebasisofRM1.00nominalvalueofRCSLSforeveryRM1.00nominalvalueoftheMuNIFoutstanding.

AsaconsequencetotheaboveDebtSettlement,theholdersofMuNIFhavegrantedapartialwaiveroftheoutstandingbalanceoftheMuNIFandalloutstandingprofitsandotherchargesaccruedfromthecut-offdateasat29March2006uptothedateofissuanceoftheRCSLS.

As at the date of this report, the RCSLS mentioned above has yet to be issued to the holders of

MuNIF.

AnamountofRM611,000(2008:RM22,000)hasbeenmaintainedinthesinkingfundsheldbytrusteesinaccordancewiththeMuNIFgrantedtoasubsidiaryasdisclosedinNote14.Theamountisdepositedtomeettheredemptionofmaturingnotes.

(f) Thetermandbridgingloansaresecuredbythefollowing:

(i) Firstandthirdlegalchargeoverthefreeholdland,leaseholdlandandbuildingsofcertainsubsidiariesasdisclosedinNotes5and6;

(ii) Subordinationdeedexecutedbyasubsidiary;

(iii) Fixedandfloatingchargeoveralltheassets,revenue,rightsandbenefitsonthepropertydevelopmentpropertiesofcertainsubsidiaries;and

(iv) CorporateguaranteebytheCompany.

ANNUAL REPORT 2009

(cont’d) ��



(g) Inthefinancialyearended31January2005,MaxisegarSdn.Bhd.(“MSSB”),awholly-ownedsubsidiary,issuedRM140.0millionnominalvalueofBaIDS.

TheBaIDSissecuredinter-aliabythefollowing:

(i) ChargesoveralltheoperatingaccountsphasesinvolvedofMSSB(includingHousingDevelopmentAccounts);

(ii) AssignmentsofsaleproceedsfromcertaindevelopmentphasesofMSSB;

(iii) AchargeovercertaindevelopmentpropertiesofMSSB;

(iv) SpecificdebenturecoveringfixedandfloatingchargeonallassetsofMSSBrelatedtotheproject;and

(v) AcorporateguaranteefromtheCompany.

PursuanttotheRegularisationPlanasdisclosedinNote41,on31December2008,theCompanyanditssubsidiaryhadenteredintoaDebtSettlementAgreement(“DebtSettlement”)withtheholdersofBaIDS.EachoftheholdersofBaIDSagreestoacceptasfullandfinalsettlementanddischargeoftheirrespective indebtedness, theexisting facilities, theguaranteesandanyandallsecurities in respectthereof,viatheissuanceofRM117.0millionnominalvalueofzerocoupon5-yearredeemableconvertiblesecuredloanstocks(“RCSLS”)at100%ofitsnominalvalueonthebasisofRM1.00nominalvalueofRCSLSforeveryRM1.00nominalvalueoftheBaIDSoutstanding.

AsaconsequencetotheaboveDebtSettlement,theholdersofBaIDShavegrantedapartialwaiveroftheoutstandingbalanceoftheBaIDSandalloutstandingprofitsandotherchargesaccruedfromthecut-offdateasat27February2006uptothedateofissuanceoftheRCSLS.

As at the date of this report, the RCSLS mentioned above has yet to be issued to the holders ofBaIDS.

(h) PursuanttotheRegularisationPlanasdisclosedinNote41,on31December2008,theCompanyanditssubsidiarieshadalsoenteredintoaSettlementAgreementwithtwootherlenders,RHBInvestmentBankBerhad(“RHB”)andEONBankBerhad(“EON”)forthesettlementofdebtstotallingRM75,833,979.Each of the lenders agrees to accept as full and final settlement and discharge of their respectiveindebtedness,theexistingfacilities,theguaranteesandanyandallsecuritiesinrespectthereof,viatheissuanceoftwoclassesofzerocoupon5-yearredeemableconvertiblesecuredloanstocks(“RCSLS”)ofRM50,328,000andRM17,922,581toRHBandEONrespectively.

AsaconsequencetotheaboveSettlementAgreement,RHBandEONhavegrantedapartialwaiveroftheoutstandingbalanceandalloutstandinginterestsandotherchargesaccruedfromthecut-offdateasat31May2006uptothedateofissuanceoftheRCSLS.

Asatthedateofthisreport,theRCSLSmentionedabovehasyettobeissuedtoRHBandEON.

�� (cont’d)



(i) In thefinancial yearended31January2005,AmpleZoneBerhad (“AmpleZone”),a99.99%ownedsubsidiary,issuedRM150.0millionnominalvalueofSukukAl-Ijarah(“Sukuk”).

TheSukukissecuredinter-aliabythefollowing:

(i) DebentureoverthefixedandfloatingchargeoverallassetsandpropertiesandundertakingsbothpresentandfutureofAmpleZone;and

(ii) Principalchargeonvariousdesignatedaccounts.

On18January2008,theFacilityAgentfortheSukukhasutilisedpartialsaleproceedsfromthedisposalofinvestmentpropertytoredeemRM58,020,800facevalueofPrimarySukuk.

AnamountofRM8.112million(2008:RM9.779million)hasbeenmaintainedinthebankaccountheldbytrusteesinaccordancewiththerequirementofSukukgrantedtoAmpleZoneasdisclosedinNote14.Theamountisdepositedfortheprofitservicingrequirement.

TheSukukshallbepayableuponmaturityasfollows:

Group 2009 2008 RM’000 RM’000

Financialyearending31January2009 – 1,2072010 1,207 1,2072011 1,207 1,2072012 84,651 84,651

87,065 88,272

24. HIRE PURCHASE PAYABLES

Group 2009 2008 RM’000 RM’000

Totaloutstanding – 16Less:Interest-in-suspense – –

Principaloutstanding – 16Less:Portionduewithinthenext12monthsshown undercurrentliabilities(Note23) – (16)

Non-currentportion(Note23) – –

ThehirepurchasepayablesoftheGroupbearinterestat3.8%(2008:3.8%)perannum.

ANNUAL REPORT 2009

(cont’d) ��


25. OTHER LONG TERM PAYABLES

Group 2009 2008 RM’000 RM’000

Amountpayablefortheacquisitionofland(Note(a)) 52,352 52,352Loanfromaminorityshareholderofasubsidiary(Note(b)) 11,890 10,105Amountpayableforacquisitionofbuilding(Note(c)) 15,308 13,009Preferenceshareholdersofasubsidiary 75 75

79,625 75,541

(a) TheamountpayablefortheacquisitionoflandispayableinaccordancewiththetermsandconditionsoftheSaleandPurchaseAgreements.Theamountsarenotrepayablewithin12monthsfromtheendofthefinancialyear.

(b) Loanfromaminorityshareholderofasubsidiaryisinterestfree,unsecuredandhasnofixedtermofrepayment.

(c) Theamountpayablefortheacquisitionofbuildingis inrelationtoanagreemententeredintowithathirdpartyinthe1999financialyearforthesaleoffourfloorsofabuildingownedbyasubsidiary.Theagreementprovidesanoptionforthesubsidiarytore-acquirethosefloorswithintenyearsfromthedateofagreementatthemarketvalueonthedateofexerciseoftheoption.Thedirectorshavetheintentiontoexercisetheoptionandthereforethetransactionwasnotrecognisedasadisposal.

26. DEFERRED TAX LIABILITIES


At1February2008/2007 3,959 4,116 – –Recognisedintheincome statement(Note37) 246 (157) – –

At31January 4,205 3,959 – –

Thedeferredtaxliabilitiesareinrespectofthefollowing:

Property, Unused Unabsorbed Plant and Tax CapitalGroup Equipment Others Losses Allowances Total RM’000 RM’000 RM’000 RM’000 RM’000 At1February 2008/2007 5,871 11,029 (8,737) (4,204) 3,959Recognisedinthe incomestatement (Note37) 27 (495) 1,186 (472) 246

At31January 5,898 10,534 (7,551) (4,676) 4,205

�� (cont’d)


26. DEFERRED TAX LIABILITIES (CONT’D)

Thedirectorsareoftheopinionthat,twoofitssubsidiaries,whichrecognisedthedeferredtaxassets,willbeabletoproducesufficienttaxableprofittorealisethedeferredtaxassetsbasedontheirprojectionsoftheoperationsofthesesubsidiaries.

Deferredtaxassetshavenotbeenrecognisedinrespectofthefollowingitems:


Unusedtaxlosses 143,530 152,784 963 –Unabsorbedcapitalallowances 2,030 3,766 6 –Otherdeductibletemporary differences 31,730 30,875 20 21

177,290 187,425 989 21

TheavailabilityoftheunusedtaxlossesandunabsorbedcapitalallowancesforoffsettingagainstfuturetaxableprofitsofthesubsidiariesinwhichthoseitemsarosearesubjecttonosubstantialchangesinshareholdingsofthesubsidiariesunderSection44(5A)&(5B)oftheIncomeTaxAct,1967.DeferredtaxassetshavenotbeenrecognisedinrespectoftheseitemsastheymaynotbeusedtooffsetfuturetaxableprofitsofothersubsidiariesintheGroupandtheyhaveariseninsubsidiariesthatdonothavearecenthistoryofprofits.

27. PROvISION FOR LIABILITIES

Group 2009 2008 RM’000 RM’000

At1February2008/2007 97,014 130,172Provisionduringthefinancialyear 738 8,912Arisingfromdisposalofsubsidiaries – (2,481)Reversalofprovisionduringthefinancialyear – (38,247)Utilisationofprovisionduringthefinancialyear (1,440) (1,342)

At31January 96,312 97,014

Provisionforliabilitiescomprises:

Group 2009 2008 RM’000 RM’000

Provisionforliquidatedandascertaineddamages 57,987 58,689Provisionforcompensationarisingfromalitigation(Note17(a)) 38,325 38,325

96,312 97,014

Provisionforliquidatedandascertaineddamagesisinrespectofprojectsundertakenbycertainsubsidiaries.Theprovisionisrecognisedforexpectedliquidateddamagesclaimsbasedonthetermsoftheapplicablesaleandpurchaseagreements.

ANNUAL REPORT 2009

(cont’d) ��


28. TRADE PAYABLES


Tradepayables 196,375 158,324 2,590 2,590Progressbillingsinrespectof propertydevelopmentcosts 61,372 46,042 – –Retentionsum 30,879 36,921 – –

288,626 241,287 2,590 2,590

(a) Includedintradepayablesandretentionsumareamountsduetorelatedpartiesasfollows:

Group 2009 2008 Trade Retention Trade Retention Payables Sum Payables Sum RM’000 RM’000 RM’000 RM’000

KEBGroup 4,493 595 2,710 595IJMGroup 163,916 455 105,121 487

168,409 1,050 107,831 1,082


(b) ThenormaltradecredittermsgrantedtotheGrouprangesfrom30daysto90days.

29. OTHER PAYABLES AND ACCRUED EXPENSES


Amountpayableforacquisitionofland 31,292 60,648 – –Obligationarisingfromacquisition ofland(Note(a)) 136,735 136,735 – –Accruedexpenses 233,129 310,862 8,427 13,901Otherpayables 404,316 353,567 66,563 58,033

805,472 861,812 74,990 71,934

100 (cont’d)


29. OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D)

(a) TheobligationarisingfromtheacquisitionoflandisinrespectofobligationsarisingfromtheUniversitiIndustriSelangor(“UNISEL”)project,wherebytheSelangorStateGovernmenthadalienatedthreeparcelsoflandtotheGroupinconsiderationforthedevelopmentofUNISEL.

In2001,MaxisegarSdn.Bhd.(“MSSB”),awholly-ownedsubsidiary,enteredintoanagreementwiththeStateGovernmentofSelangorforthefinancingandconstructionofthemaincampusofUNISELon572.16acresoflandatBerjuntaiBestari,SelangorDarulEhsanforatotalvalueofRM750million.Inreturn,theStateGovernmentofSelangorhadalienatedthreeparcelsofleaseholdlandtoMSSBasfollows:

Acres RM’000

BatangBerjuntai 3,000 345,000TamanPuncakJalil 801 337,500SaujanaDamansara 110 67,500

3,911 750,000

MSSBwasunabletomeetitsfinancialobligationtobearthedevelopmentandmaintenancecostsdueofapproximatelyRM134.0million(“obligationdue”)ofUNISELandassuch,inthepreviousfinancialyear, the long termportionofMSSB’sobligationunder thesaidagreementhasbeen reclassified tocurrentliabilitiesandithasenteredintoanagreementwithKumpulanDarulEhsanBerhad(“KDEB”)andPendidikanIndustriYSSdn.Bhd.(“PIYS”)(bothofwhichactedasnomineesofStateGovernmentofSelangor)wherebyMSSBagreedtosettletheobligationduebytransferring1,715.9acresofBatangBerjuntailandwhichthepartieshaveagreedshallbevaluedforthepurposeofsettlementatRM80,000peracretoKDEBand/orPIYS.Thesettlementagreementispendingfulfillmentofcertainconditionsprecedent.

(b) IncludedinaccruedexpensesoftheGroupandoftheCompanyare:

(i) AccruedinterestofRM90.755million(2008:RM118.642million)andRM6.997million(2008:RM13.893million)respectively;

(ii) AmountpayabletoauthoritiesandutilitycompaniesinrelationtodevelopmentprojectsofRM62.557million(2008:RM82.561million)andRM59,000(2008:RM30,000)respectively;and

(iii) ProgressbillingsbilledinadvanceofRM47.929million(2008:RM78.102million).

(c) IncludedinotherpayablesoftheGroupare:

(i) RefundabledepositsofRM19.284million(2008:RM13.742million)receivedfrompurchasersofpropertiesandtenantsofcomplexes;

(ii) AdvancesfromminorityshareholdersofasubsidiaryamountingtoRM1.166million(2008:RM0.991million),bearinginterestattherateof8%perannum.Theadvancesareunsecuredandhavenofixedtermsofrepayment;

(iii) RenovationcostspayableforahotelbuildingofapproximatelyRM1.858million(2008:RM1.608million);and

(iv) Amount owing to a corporate shareholder, Kumpulan EuroplusBerhad and its subsidiaries, ofapproximatelyRM71.105million (2008:RM47.550million)whicharose frompaymentsmadeon behalf, bearing interest at the rate of 8% (2008: Nil%) per annum with no fixed terms ofrepayment.

(d) IncludedinotherpayablesoftheGroupandoftheCompanyareamountstotallingRM14.240million(2008:RM13.443million)andRM5.0million(2008:RM5.5million)respectivelyowingtotheIJMGroup,arelatedparty.ThenatureoftherelationshipwiththisrelatedpartyisdisclosedinNote45.

ANNUAL REPORT 2009

(cont’d) 101


30. DEFERRED PROGRESS BILLINGS

Group 2009 2008 RM’000 RM’000

Deferredprogressbillings 1,091,692 1,091,692Less:Billed (620,640) (620,640) Waiverofbalance(Note(c)) (43,513) –

427,539 471,052

Discountondeferredprogressbillings 172,461 172,461Less:Discountcapitalisedinproperty developmentcosts (15,686) (15,686) Amortisationchargedtoincomestatement (130,643) (130,643) Waiverofprofits(Note(c)) 9,794 –

(35,926) (26,132)

Deferredprogressbillings,netofdiscount 391,613 444,920

Representedby:Amountduewithinthenext12months 391,613 444,920

(a) Deferredprogressbillings relates toan IslamicAssetsBackedSecuritisation (“ABS”)arrangedbyasubsidiary.TheABSarrangementencompassesthesaleofthesubsidiary’srighttobillundercertainSaleandPurchaseAgreementsofcertainphasesof twodevelopmentprojects toaspecialpurposevehicle,AmbangSentosaSdn.Bhd.(“ASSB”),foranetcashpurchaseconsiderationofapproximatelyRM919.231million.

(b) FollowingtheGroupdefaultedonitsrepaymentobligationsunderABSonitsduedateon28July2006,on5October2006,theCompanyandMaxisegarSdn.Bhd.(“MSSB”),awholly-ownedsubsidiary,hadenteredintoasettlementagreementwithASSBandPBTrusteeServicesBerhad(“Trustee”).ThesettlementagreementencompassestheacceptanceofRM503.8millionasfullandfinalsettlementtowardstheremainingoutstandingBaIDswiththefollowingsalientterms:

(i) cashportionofRM67.8millionandallprofitsaccruingthereonintheEscrowAccountsandthe

BaIDsRedemptionAccountasattheCashPortionPaymentDate;

(ii) securedAl-BaiBithamanAjilIslamicDebtSecuritiesofuptoanaggregatevalueofRMl50.0millionSettlementBaIDstobeissuedinoneseriesbytheCompanywithatenureof8yearsandattheissuer’soptiontoextendanother2years;

(iii) RM286.0millionofRedeemableConvertiblePreferenceShares(“RCPS”)ofparvalueRM0.20perRCPSwithamaturityperiodof5years;

ThesettlementagreementformspartoftheRegularisationPlanasdisclosedinNote41.

(c) Pursuant to theRegularisationPlanandtheapprovalgrantedbyallBaIDSholders foraccepting theabovementionedsettlementarrangement,theGrouphadaccountedforamountstotallingapproximatelyRM53.307 million in respect of the partial waiver of the outstanding balance of the BaIDS and alloutstandingsecondarynotesaccruedfromthecut-offdateon3April2006uptothedateofissuanceoftheRCPSandtheSettlementBaIDS.

10� (cont’d)


31. REvENUE


Propertydevelopmentrevenue 241,367 206,621 – –Rentalincome 14,508 18,836 – –Revenuefromhoteloperations 19,492 18,678 – –Managementfeesandcharges fromthirdparties 7,456 3,612 – 1,946Salesofinventories 18,359 – – 1,550Salesofgoods 74 602 – –Otherrecreationalincome 22 – – –

301,278 248,349 – 3,496

32. COST OF SALES


Propertydevelopmentcosts 240,452 208,562 – –Costofrental 9,779 8,740 – –Costofrevenueforhoteloperations 8,617 7,269 – –Costofgoodssold 74 – – –Costofinventoriessold 14,617 225 – 597

273,539 224,796 – 597

33. FINANCE COSTS


Interestexpenseson:-termandbridgingloans 21,604 28,629 3,785 2,174-bankoverdraft 371 982 141 851-hirepurchase – 36 – –-otherborrowings 29,518 17,501 16,927 10,037

51,493 47,148 20,853 13,062ProfitonIslamicdebtsecurities 5,344 29,546 – –

56,837 76,694 20,853 13,062Less:Interestcapitalisedin propertydevelopmentcosts (Note6) (3,264) (9,609) – –

53,573 67,085 20,853 13,062

ANNUAL REPORT 2009

(cont’d) 10�


33. FINANCE COSTS (CONT’D)

IncludedininterestexpenseoftheGroupandtheCompanyareamountspaidorpayabletothefollowingrelatedparties:


PengurusanProjekBersistem Sdn.Bhd. 2,389 2,050 – –KEBGroup 24,271 1,076 14,675 1,043


34. PROFIT/(LOSS) BEFORE TAX

Profit/(Loss)beforetaxisstatedaftercharging/(crediting)thefollowing:


Staffcosts(Note35) 11,237 14,303 5 –Allowancefordoubtfuldebts -thirdparties 17,046 14,083 3,550 6,059 -subsidiaries – – – 2,753 -associates 25 – – –Landanddevelopmentcosts writtenoff 41 9,588 – –Provisionforliabilities -liquidatedandascertained damages 738 8,912 – –Depreciationofproperty, plantandequipment 7,602 7,586 226 272Allowanceforwritedownin inventories 1,655 7,030 – –Directoperatingexpenses ofinvestmentproperties -revenuegeneratingduring thefinancialyear 6,561 4,269 – – -non-revenuegenerating duringthefinancialyear 291 1,184 – –Baddebtswrittenoff -thirdparties 409 2,704 – 97Amortisationofprepaid leasepayments 695 695 – –Auditors’remuneration -currentfinancialyear 414 353 70 70 -priorfinancialyears 66 (33) – 18 -otherservices – 135 – 135

10� (cont’d)


34. PROFIT/(LOSS) BEFORE TAX (CONT’D)


Lossondisposalof property,plantandequipment 313 124 – –Depreciationofinvestment properties 4,102 106 – –Property,plantand equipmentwrittenoff – 77 – –Rentalofoffice/complex 104 25 – –Reversalofprovisionfor liquidatedandascertained damages – (38,247) – –Reversalofallowanceno longerrequiredfordoubtfuldebts -thirdparties (2,465) (36,437) – (45) -subsidiaries – – (19,604) (28)Loss/(Gain)ondisposalof investmentproperties 233 (23,451) – –Gainondisposalofsubsidiaries – (18,474) – –Waiverofdebts -thirdparties (184) (3,700) – – -borrowings (7,583) – (4,587) – -Islamicdebtsecurities (32,000) – – – -Deferredprogressbillings (Note30(c)) (43,513) – – –Waiverofinterests/profits -borrowings (52,483) (2,300) (7,864) (914) -Deferredprogressbillings (Note30(c)) (9,794) – – –Interestincome (1,701) (2,005) – –Rentalincome (1,339) (1,489) (5) –Reversalofallowancefor writedownininventories (38) (603) – –Reversalofaccruedexpenses (1,385) – – –

35. STAFF COSTS


Wagesandsalaries 9,571 11,771 – –Socialsecurity 89 103 – –Definedcontribution 905 1,051 – –Otherstaffrelatedexpenses 672 1,378 5 –

11,237 14,303 5 –

ANNUAL REPORT 2009

(cont’d) 10�


35. STAFF COSTS (CONT’D)


Includedinthestaffcosts: KeyManagementPersonnel otherthanDirectors: Salariesandotherremuneration 529 121 – – Definedcontribution 70 16 – – Otherstaffrelatedexpenses 51 9 – –

650 146 – –

ExecutiveDirectorsas disclosedinNote36: Totalremuneration 1,490 1,654 1,006 540

36. DIRECTORS’ REMUNERATION


Executive directors: Company: Fees 58 – 58 – Salaries 569 588 569 178 Definedcontribution 68 70 68 21 Otheremoluments 311 341 311 341

1,006 999 1,006 540

Subsidiaries: Salaries 340 552 – – Definedcontribution 41 56 – – Otheremoluments 103 47 – –

484 655 – –

1,490 1,654 1,006 540

Non-executive directors: Fees 108 – 108 – Otheremoluments 302 164 302 164

410 164 410 164

Total 1,900 1,818 1,416 704

Theestimatedmonetaryvalueofbenefits-in-kindreceivedandreceivablebythedirectorsotherwisethanincashfromtheGroupandtheCompanyamountedtoRM41,000andRM11,000(2008:RM65,000andRM24,000)respectively.

10� (cont’d)


36. DIRECTORS’ REMUNERATION (CONT’D)

Thenumberofdirectorsof theCompanywhose total remunerationduring thefinancial year fallwithin thefollowingbandsareasfollows:

2009 2008 RM’000 RM’000

Executive directors: RM300,001-RM350,000 2 2 RM350,001-RM400,000 1 1

Non-Executive directors: RM50,001-RM100,000 5 – BelowRM50,000 1 5

9 8

37. INCOME TAX EXPENSE


Incometax-currentfinancialyear 1,192 1,709 – 334-priorfinancialyears (1,590) 721 10 2Deferredtax-currentfinancialyear (223) – – –-priorfinancialyears 469 (157) – –

(152) 2,273 10 336

IncometaxiscalculatedattheMalaysianstatutorytaxrateof25%(2008:26%)oftheestimatedassessableprofitforthefinancialyear.

For the previous financial year, taxation for small and medium scale subsidiaries with paid-up capital ofRM2,500,000andbelowarecalculatedattherateof20%onchargeableincomeofuptoRM500,000.ForchargeableincomeinexcessofRM500,000,thestatutorytaxrateof26%wasapplicable.

ANNUAL REPORT 2009

(cont’d) 10�


37. INCOME TAX EXPENSE (CONT’D)

Areconciliationofincometaxexpenseapplicabletoprofit/(loss)beforetaxatthestatutoryincometaxratetoincometaxexpenseattheeffectiveincometaxrateoftheGroupandoftheCompanyareasfollows:


Profit/(Loss)beforetax 60,563 5,821 4,287 (23,142)

TaxationatMalaysian statutorytaxrateof 25%(2008:26%) 15,141 1,513 1,072 (6,017)Effectofdifferenttaxrate forsmallandmediumscale subsidiariesof20%for thefirstchargeableincome ofRM500,000 – (30) – –Incomenotsubjecttotax (46,431) (30,496) (8,014) (342)Expensesnotdeductible fortaxpurposes 22,124 29,923 5,975 6,700Origination/reversalofdeferred taxassetsnotrecognisedonthe financialstatements 10,135 799 968 (7)Under/(Over)provisionofdeferred taxinpreviousfinancialyears 469 (157) – –(Over)/Underprovisionofincome taxexpenseinpriorfinancialyear (1,590) 721 9 2

Tax(credit)/expenseforthe financialyear (152) 2,273 10 336

38. EARNINGS PER SHARE

(a) Basic

Basicearningspershareiscalculatedbydividingthenetprofitforthefinancialyearbytheweightedaveragenumberofordinarysharesinissueduringthefinancialyear,excludingtreasurysharesheldbytheCompany.

Group 2009 2008

Netprofitforthefinancialyear(RM’000) 59,105 3,420Weightedaveragenumberofshares(’000) 629,367 628,304Basicearningspershare(sen) 9.39 0.54

10� (cont’d)


38. EARNINGS PER SHARE (CONT’D)

(b) Diluted

Asat31January2009,theGrouphasnodilutivepotentialordinaryshares.Assuch,thereisnodilutiveeffectontheearningspershareoftheGroupforthecurrentfinancialyear.

Forthepreviousfinancialyear,forthepurposeofcalculatingdilutedearningspershare,thenetprofitforthefinancialyearandtheweightedaveragenumberofordinarysharesinissueduringthefinancialyearhavebeenadjustedfortheeffectsofdilutivepotentialordinarysharesfromtheconversionof5%ICPS.TheadjustedweightedaveragenumberofordinarysharesistheweightedaveragenumberofordinaryshareswhichwouldbeissuedontheconversionoftheoutstandingICPSintoordinaryshares.TheICPSaredeemedtohavebeenconvertedintoordinarysharesatthedateofissuance.

Group 2009 2008

Netprofitforthefinancialyear(RM’000) 59,105 3,420

Weightedaveragenumberofordinarysharesinissue(’000) 629,367 628,304AdjustmentforassumedconversionofICPS(’000) – 14,397

Adjustedweightedaveragenumberofordinaryshares inissueandissuable(’000) 629,367 642,701

Dilutedearningspershare(sen) 9.39 0.53

39. CONTINGENT LIABILITIES / LOSSES (UNSECURED)

Company 2009 2008 RM RM

Guaranteesgiventofinancialinstitutionsfor -facilitiesgrantedtosubsidiaries 219,779 159,577-facilitiesgrantedtojointlycontrolledentities 21,941 –

Guaranteesgiventonon-financialinstitutionsfor: -facilitiesgrantedtosubsidiaries 288,000 320,000-purchaseoflandbysubsidiaries 201,634 201,634

NoprovisionforliabilitiesinrespectofthecorporateguaranteeshasbeenmadeintheCompany’sfinancialstatementsasthequantumoftheshortfallofwhichtheCompanyisliabletomakegoodcannotbepresentlydetermined.

ANNUAL REPORT 2009

(cont’d) 10�


40. COMMITMENTS

On10January2005,AmpleZoneBerhad,a99.99%ownedsubsidiaryoftheCompany,hadenteredinto,inter-alia,anAssetsPurchaseAgreementandaTrustDeedundertheissuanceofSUKUKofRM150.0million.ItisaconditionofthesaidtrustdeedthattheCompanygrantsanoptioninfavourofthesecuritytrusteeforthebenefitoftheSUKUKholders.Pursuanttotheoptionagreement,theCompanyirrevocablyandunconditionallygrantstothesecuritytrusteearighttorequiretheCompanyatanytimeduringtheoptionperiodtopurchasetheassetsattheexercisepriceuponoraftertheoccurrenceofatriggereventoraneventofdefaultoruponorafterfailureofthesellerstohonourtheirsaleundertakingsorpurchaseundertakings.

41. REGULARISATION PLAN

TheSecuritiesCommission(“SC”),videitsletterdated29April2008,approvedtheRevisedRegularisationPlanbasedonthefollowingterms:

(i) proposedreductioninthesharecapitaloftheCompanypursuanttoSection64(1)(b)oftheCompaniesAct,1965(“Act”)involvingthecancellationofRM0.40oftheparvalueofeachexistingordinaryshareofRM1.00each(“ProposedCapitalReduction”);

(ii) proposedreductionofCompany’sentiresharepremiumaccountpursuanttoSections60(2)and64(1)(b)oftheActamountingtoRM124,551,076.73(basedontheunauditedbalancesheetoftheCompanyasat31January2007)andthecreditarisingtherefromtobeset-offagainsttheaccumulatedlossesoftheCompany;

(iii) proposedsharesplitinvolvingthesubdivisionofevery1existingordinaryshareofRM0.60eachintheCompanyaftertheProposedCapitalReductioninto3ordinarysharesofRM0.20each;

(iv) proposedrestructuringandsettlementofdebtsdueandowingtothelendersoftheGroup,whichinvolves,inter-alia,thefollowing:

(a) proposedissuanceofRM257,402,000nominalvalueofzerodividend5-yearredeemableconvertiblepreferenceshares(“RCPS”)comprising1,287,010,000unitsofRCPSatRM0.20each;

(b) proposedissuanceofuptoatotalofRM356,250,581nominalvalueof4classesofzerocoupon5-yearredeemableconvertiblesecuredloanstocks(“RCSLS”)i.e.RCSLS-A,RCSLS-B,RCSLS-CandRCSLS-D,at100%oftheirnominalvalues.AnadditionalRM2,000nominalvalueofRCSLSwillbeissuedforeachofRCSLS-B,RCSLS-CandRCSLS-DtoselectedinvestorstofacilitatethelistingofRCSLS-B,RCSLS-CandRCSLS-DontheMainBoardofBursaMalaysiaSecuritiesBerhad;and

(c) proposedissuanceofuptoRM134,213,337nominalvalueof10-yearAl-BaiBithamanAjilIslamicDebtSecurities(“SettlementBaIDS”)at100%ofitsnominalvalue;and

(v) proposedassumptionbytheCompanyoftheindebtednessfromAmbangSentosaSdnBhdinrespectoftheoutstandingAsset-BackedAl-BaiBithamanAjilIslamicDebtSecurities;

subjectto,inter-alia,thefollowingconditions:

(i) nomineesofIJMCorporationBerhadontheBoardofDirectors(“Board”)oftheCompanytobeappointedasExecutiveDirectorsoftheCompany;

(ii) furtherequityconditionmaybeimposedontheCompanyafterreviewing itsequitystructure3yearsfromthedateofimplementationoftheproposedrestructuringscheme.Inthisrespect,RHBInvestmentBank/theCompany isrequiredtosubmittheeffectiveequitystructureoftheCompany3yearsafterthedateofcompletionoftheproposedrestructuringscheme,togetherwiththelatestauditedfinancialstatementsoftheCompany;

110 (cont’d)


41. REGULARISATION PLAN (CONT’D)

(iii) applicationsforapprovalornotification,whereapplicable,bemadeundertheForeignInvestmentCommittee(“FIC”)Guidelinesonthe“AcquisitionofPropertiesbyLocalandForeignInterests”forthetransactionsundertheproposeddivestmentprogrammeoftheGroup’sassetstotheFICSecretariat;

(iv) RHBInvestmentBankandtheCompanytoobtaintheSC’spriorapprovalshouldtherebeanychangestothetermsandconditionsoftheRCSLSandSettlementBaIDS;

(v) inrelationtothenon-investmentgraderatingassignedtotheRCSLSandSettlementBaIDS,RHBInvestmentBankandtheCompanyaretoensurethattheextentofcreditriskbedisclosedtotheinvestorsand/orpotentialinvestorsandtheiradvisersforthepurposeofevaluatingtherisksrelatingtotheRCSLSandSettlementBaIDS;

(vi) RHB InvestmentBankto fullydisclosetoallprospective investorsandrelevantparties the followingconflictandpotentialconflictofinterest:

(a) arisingfromtheroleundertakenbyRHBInvestmentBankintheRegularisationPlan;and

(b) allotherconflictandpotentialconflictofinterestarisingfromtheRegularisationPlan;

togetherwithrelevantmitigatingmeasures.RHBInvestmentBanktoalsoinformallprospectiveinvestorsthattheBoardoftheCompanyisfully informedofandawareoftheconflictandpotentialconflictofinterestsituationsandisagreeabletoproceedwiththepresentarrangement;

(vii) RHBInvestmentBanktoensurethatthesellingrestrictionimposedontheRCSLS-AandSettlementBaIDSarefullydisclosedtoallprospectiveinvestorsandrelevantparties,includingmakingsuchinformationavailableontheFullyAutomatedSystemforIssuing/Tendering(FAST);

(viii) CompanyshallobtainallnecessaryapprovalsfromallrelevantpartiesinrelationtotheproposedRCSLSandSettlementBaIDSissuesandRHBInvestmentBankistosubmitawrittenconfirmationonthesametotheSCpriortotheissuedateoftheRCSLSandSettlementBaIDS;

(ix) RHBInvestmentBankandtheCompanytodiscloseinwritingtopotentialinvestorsthateachRCSLSandSettlementBaIDSissuewillcarrydifferentrisksandallpotentialinvestorsarestronglyencouragedtoevaluateeachRCSLSandSettlementBaIDSissueonitsownmerit;

(x) RHBInvestmentBankisrequiredtoremindallrelevantpartiesincludingtheCompanyoftheneedtoobserveandfullycomplywithallstatutoryrequirements,inparticular,thosesetoutinDivision4ofPartVIoftheCapitalMarkets&ServicesAct2007;

(xi) RHBInvestmentBankandtheCompanymustfullycomplywiththerelevantrequirementsrelatingtotheimplementationoftheproposalsasstipulatedinthePoliciesandGuidelinesonIssue/OfferofSecurities;and

(xii) RHBInvestmentBankandtheCompanytoinformtheSCuponcompletionoftheRegularisationPlan.

TheSChadalsovide theabovesaid letterapproved theRegularisationPlanunder theGuidelineson theAcquisitionofInterests,MergersandTake-OversbyLocalandForeignInterestsissuedbytheFIC.

TheCompany’sshareholdershaveviatheExtraordinaryGeneralMeetingheldon15September2008,approvedtheProposedRegularisationPlan,ProposedincreaseinauthorisedsharecapitalandProposedamendmentstotheMemorandumandArticlesofAssociation.

ANNUAL REPORT 2009

(cont’d) 111



TheCompanyhadon6October2008submittedthepetitionfortheproposedreductionofthesharecapitalandsharepremiumaccountoftheCompanytotheHighCourtofMalaya(“court”)andwasgrantedorderbythecourton5December2008.

TheCompanyhadon11December2008submittedthefollowingapplicationstoBursaMalaysiaSecuritiesBerhad(“BursaSecurities”)andwassubsequentlygrantedapproval-in-principlebyBursaSecuritiesvideitsletterdated5January2009:

(i) theadmissionof1,287,010,000RedeemableConvertiblePreferenceSharesofRM0.20each(“RCPS”)totheOfficialListofBursaSecuritiesandthelistingofandquotationfortheRCPSontheMainBoardofBursaSecurities;

(ii) theadmissionof3differentclassesofRedeemableConvertibleSecuredLoanStocks(“RCSLS”),namelyRCSLS-B,RCSLS-CandRCSLS-Dofupto89,622,905,855,010,000and585,010,000RCSLSofRM0.20eachrespectivelytotheOfficialListofBursaSecuritiesandthelistingofandquotationfortheRCSLSontheMainBoardofBursaSecurities;and

(iii) theadditionallistingofandquotationforupto3,068,292,905newordinarysharesofRM0.20eachintheCompanytobeissuedupontheconversionoftheRCPSandtheRCSLS-A,RCSLS-B,RCSLS-CandRCSLS-DontheMainBoardofBursaSecurities.

TheCompanyhadon23January2009madetwo(2)announcementstoBursaSecuritiesinrespectofthecompletionofthereduction insharecapitalandsharepremiumaccountaswellasthebookclosuredate(“BookClosureDate”)forthesharesplitinvolvingthesubdivisionofeveryone(1)existingordinaryshareofRM0.60eachintheCompany(aftertheCapitalReduction)intothree(3)ordinarysharesofRM0.20eachintheCompany(“ShareSplit”),ontheBookClosureDate.

Subsequenttotheyear-end,theShareSplitwascompletedon16February2009.AsaresultoftheShareSplit,643,579,444ordinarysharesofRM0.60eachintheCompanyweresubdividedinto1,930,738,332ordinarysharesofRM0.20eachintheCompany(“SplitShares”).TheSplitShareswerelistedandquotedonBursaSecuritieswitheffectfrom17February2009.

TheSecuritiesCommissionhadvideitsletterdated6May2009approvedtheproposedrevisiontotheprincipaltermsandconditionoftheRCSLSandSettlementBaIDS(“ProposedRevision”)andissubjectto,inter-alia,thefollowingconditions:-

(i) All relevant parties to the RCSLS and Settlement BaIDS including, but not limited to, trustee andratingagency,befullyinformedoftheProposedRevisionand,whereapplicable,obtaintheirconsentsthereto;

(ii) RHBInvestmentBankBerhadandtheCompanyhaveundertakenallnecessaryduediligenceinrelationtotheProposedRevision;

(iii) RHBInvestmentBankBerhadandtheCompanytotakethenecessarystepstoensurecompliancewithParagraph4.1(iii)oftheGuidelinesontheMinimumContentsRequirementsforTrustDeeds;

(iv) RHBInvestmentBankBerhadandtheCompanytoobtainallotherregulatoryapprovalsfortheProposedRevision,ifany;and

(v) RHB Investment Bank Berhad to submit a written confirmation on compliance with the above uponimplementationoftheProposedRevision.

11� (cont’d)



TheSecuritiesCommissionhadvideitsletterdated13May2009furtherapprovedthefollowing:-

(i) Proposedtransferoftheredeemableconvertiblepreferencesharesandredeemableconvertiblesecuredloanstocks(collectivelyknownas“Securities”)fromKumpulanDarulEhsanBerhadto100holderseachholding100unitsoftheSecuritiesrespectivelytomeetthepublicspreadrequirementofBursaMalaysiaSecuritiesBerhad;and

(ii) Proposedextensionoftimeto29June2009fortheCompanytocompletetheRegularisationPlan.

BursaMalaysiaDepositorySdn.Bhd.hadvideitsletterdated22May2009approvedtheproposedtransferoftheSecuritiestobeissuedpursuanttotheRegularisationPlanfromKumpulanDarulEhsanBerhadto100holderseachholding100unitsoftheSecuritiesrespectivelytomeetthepublicspreadrequirementofBursaMalaysiaSecuritiesBerhadviabulktransfermethod.

Asatthedateofthisreport,theRCSLS,SettlementBaIDSandRCPStobeissuedpursuanttotheProposedRegularisationPlanhaveyettobeissuedtothelenders.

ThedirectorsareconfidentthattheRegularisationPlanwouldbecompletedsuccessfullywithintheapprovedextensionoftimeto29June2009.

42. SUBSIDIARIES

Detailsofsubsidiariesareasfollows:

Effective Equity InterestName of Company 2009 2008 Principal Activities % %


AbraDevelopmentSdn.Bhd.^+µ 100 100 Propertydevelopment andinvestmentholding

AlamJohanSdn.Bhd.µ 99.99 99.99 Propertydevelopment

AmpleZoneBerhad*^δ 99.99 99.99 Investmentholdingandprovision ofassetmanagementservices

BeautifulPeninsularSdn.Bhd.^µ 69.99 69.99 Propertydevelopment BiltradexSdn.Bhd.µ 99.99 99.99 Propertydevelopmentand investment

BukitBeruntungNurseries 99.99 99.99 Ceasedoperation Sdn.Bhd.^ BukitKhazanahSdn.Bhd.*^∞ 99.65 – Propertydevelopmentand investment

CapitalAdvanceCorporation 99.99 99.99 Investmentholding Sdn.Bhd.^

CekapMesraDevelopment 50.01 50.01 Propertydevelopment Sdn.Bhd.+µ

ANNUAL REPORT 2009

(cont’d) 11�


42. SUBSIDIARIES (CONT’D)



ClassicFortuneSdn.Bhd.^ 99.99 99.99 Propertydevelopment DayaKreatifSdn.Bhd.^µ 99.99 99.99 Propertydevelopment EnvyVistaSdn.Bhd.^ 99.99 99.99 Dormant Era-CasaSdn.Bhd.^ 100 100 Investmentholding EuroplusBerhad^µ 99.99 99.99 Investmentholdingandproperty development

EuroplusConstruction 99.99 99.99 Propertydevelopment Sdn.Bhd.^+µ EuroplusCorporation 99.99 99.99 Propertydevelopment, Sdn.Bhd.^+µ andinvestmentholding

ExpandFactorSdn.Bhd.^€ 100 100 Propertydevelopment andinvestmentholding

GalianJutaSdn.Bhd.^µ 100 100 Propertydevelopment GemapantasSdn.Bhd.^ 51 51 Investmentholding G.L.DevelopmentSdn.Bhd.µ 100 100 Propertyinvestmentand development IdealSynergySdn.Bhd.^µ 100 100 Propertydevelopment

IntiJohanSdn.Bhd.^µ 100 100 Propertyinvestmentand management IzinSagaSdn.Bhd.^ 99.99 99.99 Dormant

JuaraTiasaSdn.Bhd.^µ 100 100 Propertyinvestment KenshineCorporationSdn.Bhd.+µ 99.99 99.99 Propertydevelopment

KolejAmanBhd.^ 58.46 58.46 Ceasedoperation LambangWiraSdn.Bhd.^ 99.99 99.99 Investmentholding

LarutLeisureEnterpriseSdn.Bhd.^ 99.99 99.99 Investmentholding

LarutManagementServices 99.99 99.99 Investmentholding Sdn.Bhd.^

LarutOverseasVentures 99.99 99.99 Investmentholding Sdn.Bhd.^

11� (cont’d)





L.C.B.ManagementSdn.Bhd.^µ 100 100 Provisionofmanagementservices

LestariPuchongSdn.Bhd.^+€ 99.99 99.99 Propertydevelopment

LayatamaSdn.Bhd.^ 100 100 Investmentholding

Maxdale(M)Sdn.Bhd. 100 100 Investmentholding

MaxisegarConstructionSdn.Bhd.^µ 100 100 Propertyinvestment,management anddevelopment

MaxisegarEducationSdn.Bhd.^µ 60 60 Investmentholding

MaxisegarRealtySdn.Bhd.^µ 100 100 Dormant

MaxisegarSdn.Bhd.^+µ 100 100 Propertydevelopment andinvestmentholding

MutualProsperousSdn.Bhd.*^ 99.99 99.99 Investmentholding

NewCourtPropertiesSdn.Bhd.^ 98.04 98.04 Dormant

Noblepace(M)Sdn.Bhd.^ 100 100 Investmentholding

PandanIndahMedical 100 100 Ceasedoperation ManagementSdn.Bhd.µ

PandanLakeClubBerhad*∞ 99.65 – Operationofarecreationalclub

PeninsularProperties(M)Sdn.Bhd.^ 99.99 99.99 Propertydevelopment

PeninsularPropertiesManagement 99.99 99.99 Provisionofproperty Sdn.Bhd.^ managementservicesPerwiraIndraSaktiManagement 99.99 99.99 Dormant ServicesSdn.Bhd.*¥ P.I.S.PropertiesManagement 99.99 99.99 Dormant Sdn.Bhd.*¥

RegobaseSdn.Bhd.^ 100 100 Investmentholding

SeaviewPlantationsSdn.Bhd.^ 99.99 99.99 Propertydevelopmentand investmentholding

SaujanaUkaySdn.Bhd. 50.82 – Propertydevelopment (formerly known as Gemar Megaprima Sdn. Bhd.)*∞

ANNUAL REPORT 2009

(cont’d) 11�




Incorporated in Malaysia SentosaRestu(M)Sdn.Bhd.^µ 99.99 99.99 Propertydevelopment

StarBaseSdn.Bhd.^µ 90 90 Propertydevelopment

TalamBeverageSdn.Bhd.µ 99.77 99.77 Ceasedoperation TalamGeneralFoodsSdn.Bhd.^ 100 100 Dormant

TalamIndustriesSdn.Bhd.+^µ 100 100 Propertydevelopmentand investmentholding

TalamLeisureDevelopment 100 100 Propertydevelopmentand Sdn.Bhd.^ investmentholding

TalamManagementServices 100 100 Dormant Sdn.Bhd.

TalamManufacturingSdn.Bhd.^ 100 100 Investmentholdingandprovisionof managementservices

TalamMedicalCentreSdn.Bhd. 100 100 Dormant TalamPlantationsSdn.Bhd.^ 100 100 Investmentholding TalamPropertiesSdn.Bhd.^ 100 100 Propertydevelopment TalamRefrigerationSdn.Bhd.^ 99.77 99.77 Investmentholding

TalamPremiumDevelopment 100 100 Investmentholdingandprovisionof Sdn.Bhd.^ managementservices

TalamTractorsSdn.Bhd.^ 100 100 Dormant

TCBResourcesSdn.Bhd.^µ 100 100 Investmentholding,provisionof managementandconsultancy servicesandgeneraltrading

TerangTanahSdn.Bhd.^ 99.99 99.99 Propertydevelopment

TransLibertySdn.Bhd.^ 99.99 99.99 Propertydevelopment

UkayLandSdn.Bhd.^+µ 99.99 99.99 Propertydevelopment

UluYamGolfAndCountryClub 60 60 Dormant Sdn.Bhd.µ

UnitedAxisSdn.Bhd.^µ 99.99 99.99 Propertydevelopment UntungUtamaSdn.Bhd.* 99.99 99.99 Propertydevelopment

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Incorporated in Malaysia VenueVentureSdn.Bhd.*∞ 99.65 – Investmentholding,property investmentandmanagement

WinaxEngineeringSdn.Bhd.^ 100 100 Investmentholding

ZhinmunSdn.Bhd.*^ 99.99 99.99 Propertydevelopment

ZillionDevelopmentSdn.Bhd.^ 100 100 Propertyinvestmentand development

Incorporated in Hong Kong

AgriresourcesInternational(HK) 64.99 64.99 Dormant Limited*¥

LarutConsolidated(HK) 99.99 99.99 Investmentholding Limited#*

LarutTalamInternational 99.88 99.88 Dormant ManagementServicesLimited*

MalimEnterprise(HK)Limited*^ 100 100 Investmentholding

NobleHouseInvestmentsLimited* 100 100 Investmentholding

ParkgroveLimited* 100 100 Investmentholding

PPBInvestment(HK)Limited*Δ¥ 99.99 99.99 Dormant

TalamCorporation(HK)Limited* 100 100 Investmentholding TalamResources(HK)Limited* 100 100 Investmentholding

Incorporated in Singapore CrystalAcePte.Ltd.*^¥ 100 100 Dormant

Incorporated in The People’s Republic of China

JilinProvinceMaxcourtHotel 85 85 Operatingandmanagingahotel Limited*^


δ Theauditors’reportsofthissubsidiaryisnotavailable.Auditproceduresonconsolidationhavebeenappliedbytheauditorsonthefinancialstatementsofthissubsidiary.

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∞ ThefollowingsubsidiariesthatwereacquiredduringthecurrentfinancialyearhavefinancialyearendwhicharenotcoterminouswiththatoftheCompany:-

Name of Company Financial Year End

BukitKhazanahSdn.Bhd. 31MarchPandanLakeClubBerhad 31MarchSaujanaUkaySdn.Bhd.(formerly known as Gemar Megaprima Sdn. Bhd.) 31OctoberVenueVentureSdn.Bhd. 31March

Theauditors’reportsofthesesubsidiariesarenotavailable.

PursuanttoSection168(1)(b)oftheCompaniesAct,1965,thesesubsidiarieswillchangetheirfinancialyearendto31JanuarywithintwoyearsfromthedatetheybecomethesubsidiariesoftheCompanyinordertocoincidewiththefinancialyearendoftheCompany.Forthepurposeofconsolidation,theunauditedfinancialstatementsofthesesubsidiariesforthefinancialperiodended31January2009havebeenusedandappropriateauditproceduresonconsolidationhavebeenappliedbytheauditorsontheeffectsofsignificanttransactionsbetween20November2008,beingthedateofacquisitionofthesesubsidiaries,and31January2009.TheeffectsarisingfromtheacquisitionsofthesesubsidiariesonthefinancialresultsoftheGroupfromthedateofacquisitionto31January2009andtheeffectsonthefinancialpositionsoftheGroupasat31January2009weredisclosedinNote10(b).

# CertainsharesofthecompaniesareheldintrustbycertaindirectorsforLarutOverseasVenturesSdn.Bhd.

Δ Submittedforderegistrationwiththeauthorities.

¥ The audited financial statements and auditors’ reports of these subsidiaries are not available forconsolidation.Thesesubsidiariesarecurrentlydormant.

Detailsofmodifiedopinionsintheauditors’reportsofthesubsidiariesareasfollows:

(a) Emphasis of Matters

(i) The audit reports of subsidiaries marked “^” contain an emphasis of matter relating to theappropriatenessofthegoingconcernbasisofaccountingusedinthepreparationoftheirfinancialstatements.

(ii) The audit reports of subsidiaries marked “+” contain an emphasis of matter relating to the

recoverabilityofamountduefromcertaincontractorsofRM24.445million(Note16(c)).

(iii) Theauditreportsofsubsidiariesmarked“µ”containemphasisofmatterswhichdrawattentiontothenotestothefinancialstatementswhichdisclosesthecurrentstatusforthematterthatgaverisetotheemphasisofmattersparagraphsintheauditreportsforthepreviousfinancialyearended31January2008.

(iv) Theauditreportsofsubsidiariesmarked“€”containemphasisofmatterswhichdrawattentiontothenotestothefinancialstatementswhichdisclosesthecurrentstatusforthematterthatgaverisetothedisclaimeropinionsintheauditreportsforthepreviousfinancialyearended31January2008.

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(b) Qualified Opinions

(i) TheauditorsofParkgroveLimited,NobleHouseInvestmentsLimitedandTalamResources(HK)Limitedreportedaqualifiedopinioninrespectofthenon-availabilityofthefinancialandstatutoryinformation on the investments in the associates for equity accounting. There were no othersatisfactory audit procedures to satisfy themselvesas to theexistenceandownership of theassociates,therecoverabilityoftheamountduefromtheassociatesasat31January2009andwhetherany impairment for the investment in theassociatesshouldbemade in thefinancialstatementsasat31January2009.

(ii) Theauditorsof LarutConsolidated (HK)Limited reportedaqualifiedopinion in respectof thefollowing:-

(I) Non-availabilityofthefinancialstatementsofasubsidiaryforconsolidation.Theauditorswereunabletoquantifytheeffectonnon-consolidationtotheGroupasthefinancialinformationofthissubsidiarywasnotavailable.

(II) Theinvestmentintheassociateisstatedatcostandisnotaccountedforinthefinancialstatementsusingtheequitymethod.ThisisnotinaccordancewithHongKongAccountingStandard 28 “Investments in Associates” issued by the Hong Kong Institute of CertifiedPublicAccountantswhichrequiresthattheCompany’sshareofthepost-acquisitionprofitoftheassociateberecognisedintheincomestatementanditsshareofthepost-acquisitionmovements in the associate’s reserves be recognised in the Company’s reserves. TheCompany’sshareoftheaccumulativepost-acquisitionmovementsshouldbeadjustedagainstthecarryingamountof the investment in theassociate. Thefinancialstatementsdonotincludeanexplanationforthisdeparture.

(iii) The auditors of Malim Enterprise (HK) Limited reported a qualified opinion in respect of the

following:

(I) As the financial statements of a subsidiary, Jilin ProvinceMaxcourtHotel Limited for thefinancialperiodended31December2008wereauditedbyCertifiedPublicAccountantsunderthegeneralacceptedaccountingprinciplesinthePeople’sRepublicofChinaandthefinancialstatementsasat31January2009werenotaudited,theauditorswereunabletoquantifytheeffectofnon-preparationoftheGroupfinancialstatementsandtodeterminewhethertheinformationrequiredunderparagraph18(4)ofthetenthscheduletotheHongKongCompaniesOrdinancedisclosedinthenotestothefinancialstatementsisfairlystated.

(II) TherewerenosatisfactoryauditprocedurestosatisfythemselvesastotherecoverabilityoftheamountduefromasubsidiaryofRM22,075,100asat31January2009andwhetheranyimpairmentfortheinvestmentinthesubsidiaryofRM24,317,089asat31January2009shouldbemadeinthefinancialstatements.Anyadjustmentstothesefiguresmighthaveaconsequentialeffectontheresultsfortheyearandnetliabilitiesasat31January2009.

ANNUAL REPORT 2009

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43. SIGNIFICANT EvENTS DURING THE FINANCIAL YEAR

Significanteventsduringthefinancialyearareasfollows:

(a) TheSecuritiesCommission(“SC”),videitsletterdated29April2008,approvedtheRevisedRegularisationPlan(“RP”).

(b) On20June2008,theKualaLumpurHighCourtgrantedafurtherextensiontotheRestrainingOrderpursuanttoSection176oftheCompaniesAct,1965grantedtoasubsidiary,MaxisegarSdn.Bhd.on28March2006(“theMaxisegarRO”),foraperiodof180dayseffectivefrom26June2008to26December2008.

On12December2008,theKualaLumpurHighCourtgrantedafurtherextensiontotheMaxisegarROforaperiodof180dayseffectivefrom26December2008to26June2009.

(c) PursuanttotheTrustDeeddated3November2003enteredbetweenVenueVentureSdn.Bhd.(“VVSB”)andtheTrusteeoftheholderof5-Year1%IrredeemableConvertibleUnsecuredLoanStock(“ICULS”),RM76,332,275.00nominalvalueofICULShavebeenissuedtotheCompany’s99.99%subsidiary,EuroplusBerhad(“EB”)byVVSBaspartoftheconsiderationfortheacquisitionofitsrecreationandleisurerelatedbusinessandinvestmentproperties.TheICULSwillmatureon20November2008(“MaturityDate”).

OntheMaturityDate,EBhadconvertedtheentireRM76,332,275ICULSinto76,332,275newordinarysharesofRM1.00eachofVVSB(“Conversion”)whichrepresents99.65%inthesharecapitalofVVSB.AftertheConversion,EBholds76,332,277ordinarysharesofRM1.00eachrepresenting99.65%oftheenlargedissuedandpaid-upsharecapitalofVVSBwhilstPBTrusteeServicesBerhadholds0.35%oftheequity.

Thereafter,VVSBandits3subsidiariesnamely,BukitKhazanahSdn.Bhd.,PandanLakeClubBerhadandSaujanaUkaySdn.Bhd.(formerly known as Gemar Megaprima Sdn. Bhd.)becameindirectsubsidiariesoftheCompany.

44. SIGNIFICANT EvENTS SUBSEQUENT TO THE FINANCIAL YEAR

(a) On16February2009,the643,579,444ordinarysharesofRM0.60eachintheCompanywassubdividedinto1,930,738,332ordinarysharesofRM0.20eachintheCompany(“SplitShares”)astheresultofthesharesplitinvolvingthesubdivisionofeveryone(1)existingordinaryshareofRM0.60eachintothree(3)ordinarysharesofRM0.20eachintheCompany.TheSplitShareswerelistedandquotedonBursaMalaysiaSecuritiesBerhadwith effect from17 February2009. Concurrently, theauthorisedsharecapitaloftheCompanyhasincreasedtoRM2,000,000,000dividedinto8,000,000,000ordinarysharesofRM0.20each,1,500,000,000redeemableconvertiblepreferencesharesofRM0.20eachand1,000,000,000irredeemableconvertiblepreferencesharesofRM0.10each.

(b) TheSecuritiesCommissionhadvideitsletterdated6May2009approvedtheproposedrevisiontotheprincipaltermsandconditionoftheRCSLSandSettlementBaIDS(“ProposedRevision”)pursuanttotheRegularisationPlan.ThedetailsaredisclosedinNote41.

(c) On26May2009,EuroplusCorporationSdn.Bhd.,a99.99%ownedsubsidiaryoftheCompany,hadenteredintoaSaleandPurchaseAgreementwithTAFirstCreditSdn.Bhd.(“TAFC”)todisposeofapieceofvacantcommerciallandinBukitBeruntungmeasuringapproximately73.61acrestoTAFCatatotalpurchaseconsiderationofRM44.89million.ThesaleproceedsgeneratedwillbeutilisedtopartlysettlethetermloanfacilitygrantedbyTAFCtoMaxisegarRealtySdn.Bhd.,awholly-ownedsubsidiaryoftheCompany.

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45. SIGNIFICANT RELATED PARTY TRANSACTIONS

Duringthefinancialyear,significantrelatedpartytransactionsareasfollows:


Constructioncostspaid/payableto thefollowingcompanies(Note6(h)(i)): -KEBGroup 262 938 – – -IJMGroup 208,652 179,574 – –

Financingfacilitiesobtained fromthefollowing companies(Note23): -PengurusanProjek BersistemSdn.Bhd. – 18,685 – – -KEBGroup – 28,666 – 28,666

Rentalincomereceivedand receivablefromthe followingcompanies: -Agrocon(M)Sdn.Bhd. 64 64 – – -KEBGroup 2,248 1,486 – –

Managementfeereceived/ receivablesfromthefollowing companies: -VenueVentureSdn.Bhd. 600 – – – -RadiantPillarSdn.Bhd. 6,000 – – –

Interestexpensepaidand payabletothefollowing companies: -PengurusanProjek BersistemSdn.Bhd. 2,389 2,050 – – -KEBGroup 24,271 1,076 14,675 1,043

Equipmentrentalreceivedand receivablefromthefollowing companies: -KEBGroup 8 – – –

Maintenancechargesreceived andreceivablefromthe followingcompanies: -KEBGroup 8 – – –

Interestpaid/payableonadvances fromthefollowingjointly controlledentities(Note12(b)): -SierraUkaySdn.Bhd. 543 384 – – -CekapTropikalSdn.Bhd. 671 1,318 – – -GoodDebutSdn.Bhd. 321 9 – –

ANNUAL REPORT 2009

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45. SIGNIFICANT RELATED PARTY TRANSACTIONS (CONT’D)

Thenatureoftherelationshipwiththerelatedpartiesisasfollows:

Related Parties Nature of Relationship PengurusanProjekBersistem PPBSBisacorporateshareholder. Sdn.Bhd.(“PPBSB”) TanSriDato’(Dr.)Ir.ChanAhChye@ChanChongYoon(“TSDCAC”),

adirectorandsubstantialshareholderof theCompanyandhisspouse,PuanSriDatinThongNyokChoo(“PSDTNC”),asubstantialshareholderoftheCompany,havesubstantialfinancialinterestinPPBSB.

Agrocon(M)Sdn.Bhd. ThesisterofTSDCAC,adirectorandsubstantialshareholderof (“AMSB”) theCompany,hassubstantialfinancialinterestinAMSB.

KumpulanEuroplusBerhadand KumpulanEuroplusBerhad(“KEB”)isacorporateshareholder. itssubsidiaries(“KEBGroup”) TSDCAC,adirectorandsubstantialshareholderoftheCompanyand

hisspouse,PSDTNC,asubstantialshareholderoftheCompany,havesubstantialfinancialinterestinKEBGroup.

VenueVentureSdn.Bhd. TSDCAC,adirectorandsubstantialshareholderoftheCompany (“VVSB”) andhisspouse,PSDTNC,asubstantialshareholderoftheCompany,

havedirectandindirectinterestsinVVSBforthepast6months.

IJMCorporationBerhad(“IJM”) IJM isacorporateshareholderby virtueof IJMholding25% in anditssubsidiaries(“IJMGroup”) KEB.

RadiantPillarSdn.Bhd.(“RP”) RPisa50%ownedassociateofIJMandKEB.

Thedirectorsareoftheopinionthatallthetransactionsabovehavebeenenteredintointhenormalcourseofbusinessandhavebeenestablishedontermsandconditionsthatarenotmateriallydifferentfromthoseobtainableintransactionswithunrelatedparties.

46. FINANCIAL INSTRUMENTS

(a) Financial Risk Management Objectives and Policies

TheoperationsoftheGroupandoftheCompanyaresubjecttoavarietyoffinancialrisks,includingforeigncurrencyrisk,interestraterisk,creditrisk,liquidityriskandcashflowrisk.TheGroupandtheCompanyhaveformulatedafinancialriskmanagementframeworkwhoseprincipalobjectiveistominimisetheGroup’sandtheCompany’sexposuretorisksand/orcostsassociatedwiththefinancing,investingandoperatingactivitiesoftheGroupandoftheCompany.

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46. FINANCIAL INSTRUMENTS (CONT’D)

(b) Foreign Currency Risk

TheGroupoperatesinternationallyandisexposedtoforeigncurrencytransactionsinChineseRenminbiandHongKongDollars.TheGroup’spolicyistominimisetheexposureofoverseasoperatingsubsidiariestotransactionriskbymatchinglocalcurrencyincomewithlocalcurrencycosts.

ThenetunhedgedfinancialliabilitiesoftheGroupthatarenotdenominatedintheirfunctionalcurrenciesareasfollows:

2009 2008 RM’000 RM’000

Shorttermborrowings 4,725 5,660

(c) Interest Rate Risk

TheGroup’spolicyistoborrowprincipallyonafloatingratebasisbutretainaproportionoffixedratedebt.Theobjectivesforthemixbetweenfixedandfloatingrateborrowingsaresettoreducetheimpactofanupwardchangeininterestrateswhileenablingbenefitstobeenjoyedifinterestratesfall.

(d) Credit Risk

CreditrisksareminimisedandmonitoredviastrictlylimitingtheGroup’sassociationstobusinesspartnerswithhighcreditworthiness.Tradereceivablesmainlyarisesfromdevelopmentpropertiesprojectsandaresupportedbyend-financiers.

TheGrouphasnosignificantconcentrationofcreditriskthatmayarisefromexposurestoasingledebtorortogroupsofdebtorsotherthanthosedisclosedinNote17.

(e) Liquidity Risk

Sincethefinancialyearended31January2006,theGroupandtheCompanyhavenotmettheirobligationsincertainloanrepaymentsandinterestpaymentsandhavebreachedtheborrowingfacilitiesagreementsasdisclosedinNote23.TheGroupandtheCompanyareundertakingadebtrestructuringexerciseasdisclosedinNote41tomitigatetheliquidityrisk.

(f) Cash Flow Risk

TheGroupandtheCompanyreviewitscashflowspositionregularlytomanageitsexposuretofluctuationsinfuturecashflowsassociatedwithitsmonetaryfinancialinstruments.

ANNUAL REPORT 2009

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(g) Fair values

(i) Recognised Financial Instruments

Thecarryingamountsofthefinancialassetsandfinancialliabilitiesasatthebalancesheetdateapproximatetheirfairvaluesduetotherelativelyshorttermmaturitiesexceptforthefollowing:

Group Company Carrying Fair Carrying Fair Note Amount value Amount value RM’000 RM’000 RM’000 RM’000

At 31 january 2009

Financial AssetsAmountowing bysubsidiaries 10(a) – – 278,452 ^Investmentproperties 7 191,785 # – –

Financial LiabilitiesOtherlongtermpayables: 25Amountpayablefor acquisitionofland 52,352 *** – –Amountpayablefor acquisitionofbuilding 15,308 *** – –Loanfromaminority shareholderofa subsidiary 11,890 ** – –

At 31 january 2008

Financial AssetsAmountowing bysubsidiaries 10(a) – – 268,951 ^Investmentproperties 7 84,516 # – –Otherinvestment 13 76,332 * – –

Financial LiabilitiesHire-purchasepayables 24 16 16Δ – –Otherlongtermpayables: 25 Amountpayablefor acquisitionofland 52,352 *** – – Amountpayablefor acquisitionofbuilding 13,009 *** – –Loanfromaminority shareholderofa subsidiary 10,105 ** – –

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(g) Fair values (Cont’d)

(i) Recognised Financial Instruments (Cont’d)

^ Itisnotpracticaltoestimatethefairvaluesofamountsowingbysubsidiariesdueprincipallytotheinabilitytoestimatethesettlementdatewithoutincurringexcessivecostsastheseamounts lack fixed repayment terms. However, the Company does not anticipate thecarryingamountrecordedatthebalancesheetdatetobesignificantlydifferentfromthevaluesthatwouldbeeventuallysettled.

# Thedirectorsdidnotconductanyvaluationontheinvestmentpropertiesandassuch,thedirectorsareunabletodeterminethefairvalueoftheinvestmentproperties.

* Itisnotpracticaltoestimatethefairvaluesoftheunquotedotherinvestmentbecauseofthelackofquotedmarketpricesandtheinabilitytoestimatefairvaluewithoutincurringexcessivecosts.

** It is not practical to estimate the fair valuesof loan fromaminority shareholder of asubsidiarydueprincipallytoa lackoffixedrepaymenttermenteredintobythepartiesinvolvedandwithoutincurringexcessivecosts.

*** Itisnotpracticaltoestimatethefairvaluesofamountpayableforacquisitionoflandandbuildingdueprincipallytoalackoffixedpaymentterms(astermsofpaymentissubjecttothetimingoffulfilmentofcertainconditionsprecedent)enteredintobythepartiesinvolvedandwithoutincurringexcessivecosts.

Δ Thefairvalueofhire-purchaseisestimatedbydiscountingtheexpectedfuturecashflowsusingthecurrentinterestratesforliabilitieswithsimilarriskprofiles.

(ii) Unrecognised Financial Instruments

Thenominal/notionalamountandnetfairvalueofcontingentliabilities(asdisclosedinNote39)arenotrecognisedinthebalancesheetasat31January2009asitisnotpracticabletomakeareliableestimateduetotheuncertaintiesoftiming,costsandeventualoutcome.

Therewerenootherunrecognisedfinancialinstrumentsasat31January2009thatarerequiredtobedisclosed.

47. SEGMENTAL INFORMATION

(i) Reporting Format

SegmentinformationispresentedinrespectoftheGroup’sbusinesssegments.Theprimaryformat,businesssegments,isbasedupontheindustryoftheunderlyinginvestments.Secondaryinformationisreportedgeographically.

ANNUAL REPORT 2009

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47. SEGMENTAL INFORMATION (CONT’D)

(ii) Business Segments

TheGroup’soperationscomprisethefollowingbusinesssegments:

Propertyinvestmentanddevelopment : Investmentholdings,developmentof residentialandcommercialproperties.

Hotelandrecreation : Operateandmanagehotelandclubandother relatedservices.

(iii) Geographical Segments

IndeterminingthegeographicalsegmentsoftheGroup,revenueisbasedonthegeographicallocationsofcustomers.Segmentassetsandcapitalexpenditurearebasedonthegeographicallocationoftheassets.Thecompositionofeachgeographicalsegmentisasfollows:

Malaysia : Investmentholding,propertydevelopmentandinvestment, provisionofassetmanagementservices,operatinga recreationalclub,provisionofmanagementand consultancyservicesandgeneraltrading.

ThePeople’sRepublicofChina : Investmentholdingandoperatingandmanagingahotel.

(a) Analysis by business segments

At 31 january 2009

Property Total investment Hotel and Before and holding Recreation Elimination Elimination Consolidated RM’000 RM’000 RM’000 RM’000 RM’000

RevenueExternalsales 281,786 19,492 301,278 – 301,278

Totalrevenue 281,786 19,492 301,278 – 301,278

ResultSegmentresult 69,286 (7,854) 61,432 – 61,432Shareofresultsof jointlycontrolled entities (869) – (869) – (869)

Profitbeforetax 60,563Incometaxcredit 152 60,715

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(a) Analysis by business segments (Cont’d)

At 31 january 2009 (Cont’d)

Property Total investment Hotel and Before and holding Recreation Elimination Elimination Consolidated RM’000 RM’000 RM’000 RM’000 RM’000

Other InformationSegmentassets 2,933,709 103,351 3,037,060 (8,108) 3,028,952Interestinjointly controlledentities 9,218 – 9,218 – 9,218Unallocatedassets 2,476

Totalassets 3,040,646

Segmentliabilities 2,370,526 151,646 2,522,172 (61,915) 2,460,257Unallocatedliabilities 185,889

Totalliabilities 2,646,146

Capitalexpenditure 131 2,118 2,249 – 2,249Depreciationofproperty, plantandequipment 839 6,763 7,602 – 7,602Depreciationof investmentproperties 4,102 – 4,102 – 4,102Amortisationof prepaidleasepayments – 695 695 – 695Non-cashexpensesother thandepreciationand amortisation 20,108 352 20,460 – 20,460

At 31 january 2008

Property Total investment Hotel and Before and holding Education Recreation Elimination Elimination Consolidated RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

RevenueExternalsales 229,671 – 18,678 248,349 – 248,349

Totalrevenue 229,671 – 18,678 248,349 – 248,349

ResultSegmentresult 14,552 (1,456) (7,524) 5,572 – 5,572Shareofresultsof jointlycontrolled entities 249 – – 249 – 249

Profitbeforetax 5,821Incometaxexpense (2,273)

3,548

ANNUAL REPORT 2009

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(a) Analysis by business segments (Cont’d)

At 31 january 2008 (Cont’d)

Property Total investment Hotel and Before and holding Education Recreation Elimination Elimination Consolidated RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Other InformationSegmentassets 2,948,747 78 145,286 3,094,111 (34) 3,094,077Interestinjointly controlled entities 10,077 – – 10,077 – 10,077Unallocatedassets 2,343

Totalassets 3,106,497

Segmentliabilities 2,498,263 1,505 126,143 2,625,911 (51,912) 2,573,999Unallocated liabilities 186,255

Totalliabilities 2,760,254

Capitalexpenditure 191 – 2,538 2,729 – 2,729Depreciationof property,plant andequipment 1,872 – 5,714 7,586 – 7,586Depreciationof investment properties 106 – – 106 – 106Amortisationof prepaidlease payments – – 695 695 – 695Non-cashexpenses otherthan depreciationand amortisation 41,929 360 229 42,518 – 42,518

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(b) Analysis by geographical segments

The People’s Republic Malaysia of China Total RM’000 RM’000 RM’000

SalesRevenueAt31January2009 281,786 19,492 301,278

At31January2008 229,671 18,678 248,349

CarryingAmountofSegmentAssetsAt31January2009 2,937,295 103,351 3,040,646

At31January2008 2,961,211 145,286 3,106,497

AdditionstoProperty,Plantand EquipmentAt31January2009 131 2,118 2,249

At31January2008 191 2,538 2,729

Thedirectorsareoftheopinionthatallinter-segmenttransactionshavebeenenteredintointhenormalcourseofbusinessandhavebeenestablishedontermsandconditionsthatarenotmateriallydifferentfromthatobtainableintransactionswithunrelatedparties.

48. COMPARATIvE FIGURES

ThecomparativefigureshavebeenauditedbyafirmofCharteredAccountantsotherthanMessrs.BakerTillyMonteiroHeng.

ANNUAL REPORT 2009

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STATEMENT BY DIRECTORS

We,CHUA KIM LANandLOY BOON CHEN,beingtwoofthedirectorsofTALAM CORPORATION BERHAD,doherebystatethat in theopinionof thedirectors, thefinancialstatementsareproperlydrawnup inaccordancewiththeFinancialReportingStandardsandtheprovisionsoftheCompaniesAct,1965inMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31January2009andoftheresultsandcashflowsoftheGroupandoftheCompanyforthefinancialyearendedonthatdate.

OnbehalfoftheBoard,

CHUA KIM LANDirector

LOY BOON CHENDirector

KualaLumpur

Date:29May2009

I,YEOH PHOI CHOON,beingtheofficerprimarilyresponsibleforthefinancialmanagementofTALAM CORPORATION BERHAD,dosolemnlyandsincerelydeclarethattothebestofmyknowledgeandbelief,thefinancialstatementsarecorrect,andImakethissolemndeclarationconscientiouslybelievingthesametobetrue,andbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

YEOH PHOI CHOON

SubscribedandsolemnlydeclaredbytheabovenamedatKualaLumpurintheFederalTerritoryon29May2009.

Beforeme,

zAINAL ABIDIN BIN NAN(W316)CommissionerforOaths

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STATUTORY DECLARATION

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INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF TALAM CORPORATION BERHAD(Incorporated in Malaysia)

REPORT ON THE FINANCIAL STATEMENTS

WehaveauditedthefinancialstatementsofTALAM CORPORATION BERHAD,whichcomprisethebalancesheetsasat31January2009oftheGroupandoftheCompany,andtheincomestatements,statementsofchangesinequityandcashflowstatementsoftheGroupandoftheCompanyforthefinancialyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes,assetoutonpages42to128.

ThefinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended31January2008wereauditedbyanotherfirmofcharteredaccountantswhosereportdated27May2008,hadthefollowingemphasisofmatterparagraphonthosefinancialstatements:-

“Without qualifying our opinion, we draw attention to Note 2 to the financial statements. As disclosed in Note 2 to the financial statements, the Group and the Company have net current liabilities of RM995,109,000 and RM35,519,000 respectively as at 31 January 2008. However, the financial statements of the Group and of the Company have been prepared on a going concern basis. This going concern basis presumes that the Group and the Company will be able to successfully implement the Regularisation Plan that has been approved by the Securities Commission subsequent to the year end, within the anticipated timeframe to enable the Group and the Company to operate profitably in the foreseeable future and consequently, the realisation of assets and settlement of liabilities in the ordinary course of business. Accordingly, the financial statements do not include any adjustments relating to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Group and the Company be unable to continue on a going concern. In this connection, the directors are confident that the Regularisation Plan, as more fully explained in Note 43 to the financial statements, would be implemented successfully without any material modifications and within the anticipated time frame.”

Directors’ responsibility for the financial statements

ThedirectorsoftheCompanyareresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewiththeFinancialReportingStandardsandtheprovisionsoftheCompaniesAct1965(“theAct”)inMalaysia.Thisresponsibilityinclude:designing,implementingandmaintaininginternalcontrolsrelevanttothepreparationandfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.

Auditors’ responsibility

Itisourresponsibilitytoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceastowhetherthefinancialstatementsarefreefrommaterialmisstatement.Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependonourjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolsrelevanttotheCompany’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany’sinternalcontrols.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

ANNUAL REPORT 2009

(cont’d) 1�1

REPORT ON THE FINANCIAL STATEMENTS (CONT’D)

Opinion

Inouropinion,thefinancialstatementshavebeenproperlydrawnupinaccordancewithFinancialReportingStandardsandtheprovisionsoftheActinMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31January2009andoftheirfinancialperformanceandcashflowsforthefinancialyearendedonthatdate.

Emphasis of matters

Withoutqualifyingouropinion,wedrawattentiontoNotes2and41tothefinancialstatements.AsdisclosedinNote2tothefinancialstatements,theGroupandtheCompanyhavenetcurrentliabilitiesofapproximatelyRM934.766millionandRM37.875millionrespectivelyasat31January2009.However,thefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedonagoingconcernbasis.TheapplicationofthegoingconcernbasisisbasedontheassumptionthattheGroupandtheCompanywillbeabletocompletetheRegularisationPlanasdisclosedinNote41withintheanticipatedtimeframeandthattheGroupandtheCompanywillbeabletoachievesustainableandviableoperationsintheforeseeablefutureandconsequently,therealisationoftheassetsandsettlementofliabilitiesinthenormalcourseofbusiness.Inthisconnection,thedirectorsareconfidentthattheRegularisationPlanwouldbecompletedsuccessfullywithintheanticipatedtimeframe.

Accordingly,thefinancialstatementsdonotincludeanyadjustmentsrelatingtotherecoverabilityandclassificationofassetsandtheclassificationofliabilitiesthatmightbenecessaryshouldtheGroupandtheCompanybeunabletocontinueasagoingconcern.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

InaccordancewiththerequirementsoftheActinMalaysia,wealsoreportonthefollowing:

(a) Inouropinion,theaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyandbyitssubsidiarieshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct;

(b) Other than thosesubsidiarieswithout thefinancialstatementsandauditors’ reportsasdisclosed inNote42tothefinancialstatements,wehaveconsideredthefinancialstatementsandtheauditors’reportsoftheremainingsubsidiariesofwhichwehavenotactedasauditors,whichareindicatedinNote42tothefinancialstatements;

(c) OtherthanthosesubsidiarieswithouttheauditedfinancialstatementsasdisclosedinNote42tothefinancialstatements,wearesatisfiedthat theauditedfinancialstatementsof theremainingsubsidiariesthathavebeenconsolidatedwiththeCompany’sfinancialstatementsareinaformandcontentappropriateandproperforthepurposesofthepreparationofthefinancialstatementsoftheGroupandwehavereceivedsatisfactoryinformationandexplanationsrequiredbyusforthosepurposes;and

(d) Otherthanthosesubsidiarieswithmodifiedopinionsintheauditors’reportsandthosesubsidiarieswithouttheauditors’reportsasdisclosedinNote42tothefinancialstatements,theauditors’reportsonthefinancialstatements of the remaining subsidiaries were not subject to any qualification material in relation to theconsolidated financial statements, or included any adverse commentsmade under Section174(3) of theAct.

INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF TALAM CORPORATION BERHAD

(Incorporated in Malaysia)

1�� (cont’d)

OTHER MATTERS

ThisreportismadesolelytothemembersoftheCompany,asabody,inaccordancewithSection174oftheActinMalaysiaandfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

Baker Tilly Monteiro HengNo.AF0117CharteredAccountants

Heng ji KengNo.578/05/10(J/PH)Partner

KualaLumpur

Date:29May2009

INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF TALAM CORPORATION BERHAD(Incorporated in Malaysia)

ANNUAL REPORT 2009

1��

LIST OF PROPERTIES@ 31 January 2009

NET BOOK @ jOINT vENTURE DATE OF APPROXIMATE vALUE AS AT + REGISTERED LAND/ DESCRIPTION/ ACQUISITION/ AGE OF THE 31 jANUARY # BENEFICIAL BUILT UP REMAINING TITLE PROPOSED jOINT vENTURE/ BUILDING 2009 NO. OwNER AREA ACREAGE NO. DEvELOPMENT COMPLETION TENURE EXPIRY (YEARS) RM’000

1 Europlus + 2,711.24 2,404.13 G45083Lot15071 BukitBeruntung 18/12/1991 Freehold N/A N/A 637,465 Corporation acres HS(D)18257PT771 TownshipDevelopment SdnBhd HS(D)27150to HS(D)27200,HS(D)27301 toHS(D)27428,PT7335 toPT7513 HS(D)26268to HS(D)26325,PT6353 toPT6410 HS(D)26328to HS(D)26464,PT6413to PT6549 HS(D)26001to HS(D)26075,PT6086to PT6160 HS(D)26077to HS(D)26230,PT6162to PT6315 HS(D)26232to HS(D)26267,PT6317to PT6352 HS(D)26231 PT6316 PartofG45084 Lot15070 HS(D)27430PT7515 HS(D)27431PT7516 HS(D)27433PT7518 HS(D)9203PT8356 HS(D)27479PT7564 HS(D)8246toHS(D)8249, PT7168toPT7171 HS(D)8235PT7157 HS(D)8544PT7697 HS(D)9330PT8484 HS(D)9329PT8483 HS(D)9396PT8550 HS(D)10570PT7230 HS(D)10574PT7234 HS(D)10690PT7350 HS(D)9419toHS(D)9436, PT8573toPT8590 HS(D)9437PT8591 HS(D)9763PT8917 HS(D)10155PT9309 HS(D)9762PT8916 HS(D)10154PT9308 HS(D)35776to HS(D)35831,PT12640to PT12695 HS(D)35744to HS(D)35775,PT12608to PT12639 HS(D)35832to HS(D)35878,PT12696to PT12742 HS(D)35689to HS(D)35739,PT12553to PT12603

1�� (cont’d)


HS(D)35670to HS(D)35681,PT12534to PT12545 HS(D)35683to HS(D)35688,PT12547to PT12552 HS(D)36197PT13061 HS(D)37008to HS(D)37037,PT11045to PT11074 HS(D)37748toHS(D) 37785,PT11784to PT11821 HS(D)37712to HS(D)37747,PT11748to PT11783 HS(D)37040to HS(D)37060,PT11077to PT11097 HS(D)38474to HS(D)38478,PT12510to PT12514 HS(D)37378to HS(D)37469,PT11415to PT11506 HS(D)37000PT11037 HS(D)36999PT11036 HS(D)37788PT11824 HS(D)37038PT11075 G54345Lot15753 G54348Lot15590 G54349Lot15206 HS(D)30973to HS(D)31005,PT4527to PT4559 HS(D)30803to HS(D)30852,PT4357to PT4406 HS(D)7629PT2548 HS(D)7831PT2750 HS(D)7503PT2421 HS(D)7405PT2322 HS(D)7650PT2569 HS(D)7969PT2888 HS(D)31090PT5148to HS(D)31098PT5156 HS(D)31100PT5158to HS(D)31113PT5171 HS(D)31125PT5183, HS(D)31138PT5196 HS(D)31140PT5198to HS(D)31143PT5201 HS(D)31160PT5218 HS(D)31163PT5221to HS(D)31165PT5223 HS(D)31169PT5227, HS(D)31170PT5228 HS(D)31175PT5233, HS(D)31205PT5263


ANNUAL REPORT 2009

(cont’d) 1��


HS(D)31207PT5265, HS(D)31209PT5267 HS(D)31211PT5269, HS(D)31213PT5271 HS(D)31215PT5273, HS(D)31217PT5275 HS(D)31219PT5277, HS(D)31226PT5279 HS(D)31228PT5281, HS(D)31230PT5283 HS(D)31232PT5285to HS(D)31264PT5317 HS(D)31266PT5319to HS(D)31269PT5322 HS(D)31271PT5324to HS(D)31274PT5327 HS(D)31275PT6080, HS(D)31277PT6082 HS(D)31281PT6050, HS(D)31282PT6051 HS(D)31287PT6056, HS(D)31307PT61 HS(D)31308PT62 HS(D)31315PT69to HS(D)31317PT71 HS(D)31331PT5124to HS(D)31343PT5136 HS(D)31355PT5676to HS(D)31419PT5740 HS(D)31421PT5742to HS(D)31495PT5816 HS(D)31499PT5331to HS(D)31501PT5333 HS(D)31506PT5338, HS(D)31511PT5343 HS(D)31517PT5349, HS(D)31518PT5350 HS(D)31531PT5363, HS(D)31534PT5366 HS(D)31536PT5368, HS(D)31542PT5374 HS(D)31545PT5377, HS(D)31548PT5380 HS(D)31555PT5387, HS(D)31561PT5393 HS(D)31585PT5398to HS(D)31640PT5453 HS(D)31642PT5486to HS(D)31646PT5490 HS(D)31648PT5492, HS(D)31674PT5158 HS(D)31650PT5494to HS(D)31673PT5517 HS(D)31675PT5519to HS(D)31682PT5526 HS(D)31686PT5530to HS(D)31690PT5534 HS(D)31693PT5555to HS(D)31695PT5557


1�� (cont’d)


HS(D)31696PT5535to HS(D)31705PT5544 HS(D)31711PT5550to HS(D)31713PT5552 HS(D)31714PT5558to HS(D)31727PT5571 HS(D)31728PT5913to HS(D)31773PT5958 HS(D)31774PT5961to HS(D)31777PT5964 HS(D)31778PT5959to HS(D)31779PT5960 HS(D)31780PT5965to HS(D)31801PT5986 HS(D)33749PT6003to HS(D)33751PT6005 HS(D)33752PT6047to HS(D)33754PT6049

Lot16532Geran56577 Lot16531Geran56575 Lot15207Geran54344 HS(D)27434PT7519 HS(D)27445PT7530 HS(D)27477PT7562 HS(D)27435to27444& HS(D)27446to27475 PT7520to7529& PT7531to7560 HS(D)44504to HS(D)44525PT15987 toPT16008 Geran44200Lot1995 Geran53432Lot2018 Geran40124Lot2066 &2073 PN5282Lot2067 HS(D)8160Lot3243

2 Talam + 993.99 472.87 HS(D)11254PT8557 BukitSentosaIII 29/10/1994 Freehold N/A N/A 269,340 Corporation acres HS(D)13223PT12171 Industrial,residential Berhad HS(D)13455PT12403 andcommercial HS(D)13457PT12405 development HS(D)13792PT12740 HS(D)14509PT13457 HS(D)14810PT13758 HS(D)29281to HS(D)29302,PT14914 toPT14935 HS(D)29818PT15451 HS(D)28844PT14573 HS(D)28845PT14574 HS(D)29307PT14940 HS(D)30174PT15791 HS(D)30175PT15792 HS(D)30355PT15972 HS(D)30356PT15973 HS(D)30358PT15975 HS(D)30170PT15787


ANNUAL REPORT 2009

(cont’d) 1��

NET BOOK @ jOINT vENTURE DATE OF APPROXIMATE vALUE AS AT + REGISTERED LAND/ DESCRIPTION/ ACQUISITION/ AGE OF THE 31 jANUARY # BENEFICIAL BUILT UP REMAINING TITLE PROPOSED jOINT vENTURE/ BUILDING 2009 NO. OwNER AREA ACREAGE NO. DEvELOPMENT COMPLETION TENURE EXPIRY (YEARS) RM’000 HS(D)30171PT15788 HS(D)30353PT15970 HS(D)30354PT15971 HS(D)30173PT15790 HS(D)30066to HS(D)30169,PT15683 toPT15786 HS(D)34724to HS(D)34734,PT16948 toPT16958 HS(D)34758to HS(D)34842,PT16986 toPT17070 HS(D)34735to HS(D)34757,HS(D)35619 toHS(D)35622,PT16959 toPT16985 HS(D)34843to HS(D)35328,PT17071 toPT17556 HS(D)35343toHS(D)35589, PT17571toPT17817 HS(D)35590toHS(D)35602, PT17818toPT17830 HS(D)34039toHS(D)34378, PT16263toPT16602 HS(D)35330PT17558 3 Europlus + 50.71 35.00 HS(D)33034PT4912 PrimaBeruntung 14/05/1996 Freehold N/A N/A 227,097 Berhad acres HS(D)33035to TownshipDevelopment HS(D)33038,PT4913to PT4916 HS(D)33041to HS(D)33088,PT4920to PT4967 HS(D)33124to HS(D)33177,PT5005to PT5058 HS(D)33231to HS(D)33424,PT5112to PT5113&PT10034to PT10225 HS(D)33427to HS(D)33525,PT10228to PT10326 HS(D)33607to HS(D)33681,PT10409to PT10483 HS(D)33682to HS(D)33707,PT10484to PT10509 HS(D)33526PT10327 HS(D)33530PT10331 HS(D)33708PT10510


1�� (cont’d)

NET BOOK @ jOINT vENTURE DATE OF APPROXIMATE vALUE AS AT + REGISTERED LAND/ DESCRIPTION/ ACQUISITION/ AGE OF THE 31 jANUARY # BENEFICIAL BUILT UP REMAINING TITLE PROPOSED jOINT vENTURE/ BUILDING 2009 NO. OwNER AREA ACREAGE NO. DEvELOPMENT COMPLETION TENURE EXPIRY (YEARS) RM’000 + 717 511.02 HS(D)21938to BukitBeruntungIII 18/12/1991 Freehold N/A acres HS(D)22089,PT7881 Residential,Industrial toPT8032 andcommercial HS(D)22090to development HS(D)22119,PT8033 toPT8062 HS(D)20331PT6274 HS(D)20335PT6278 HS(D)20472PT6415 HS(D)20467PT6410 HS(D)22129PT8072 HS(D)21498PT7441 HS(D)19594to HS(D)19694,PT5537 toPT5637 HS(D)19697to HS(D)20330,PT5640 toPT6273 HS(D)21505to HS(D)21858, PT7448toPT7801 HS(D)22306to HS(D)22309, PT8249toPT8252 HS(D)20942to HS(D)21497, PT6885toPT7440 HS(D)21859to HS(D)21937, PT7802toPT7880 HS(D)18440to HS(D)18442, PT4383toPT4385 HS(D)18443PT4386 HS(D)18438PT4381 HS(D)18439PT4382 HS(D)18284PT4227 HS(D)20471PT6414 HS(D)22128PT8071 HS(D)18285PT4228(Part)

4 Kenshine @ 600 184.40 HS(D)2479to2484, PutraPerdana 28/09/1995 99years 19/10/2093 N/A 208,359 Corporation acres PT6256to6261 Developmentof Leasehold SdnBhd MukimDengkil residentialand DaerahSepang commercialproperties 5 Maxisegar + 3,000 1,284.10 HS(D)5746PT836 BatangBerjuntai 17/01/2001 99years 21/01/2101 N/A 171,610 SdnBhd acres MukimUluTinggi Leasehold DaerahKualaSelangor HS(D)5704PT5616 HS(D)5706toHS(D)5707, PT5618toPT5619 HS(D)5709PT5621 HS(D)5713toHS(D)5718, PT5625toPT5630 MukimBatangBerjuntai DaerahKualaSelangor


ANNUAL REPORT 2009

(cont’d) 1��


6 Maxisegar + 801 113.82 HS(D)213918to213921 TamanPuncakJalil 17/01/2001 99years 02/07/2100 N/A 149,504 SdnBhd acres PT62056to62059 Developmentof Leasehold HS(D)213922to214182 residentialand PT62358to62610, commercialproperties PT71773to71780 HS(D)201972PT58673 HS(D)201974to201975 PT58490to58491 HS(D)201976PT59170 HS(D)201978to201979 PT60227&61372 HS(D)201980to201981 PT62420&62421 HS(D)201982PT62355 HS(D)246279to HS(D)246435,PT60937 to61093 MukimPetaling DaerahPetaling

7 LestariPuchong + 496.731 91.31 HS(D)50603PT142202 LestariPuchong 24/07/2000 99years 12/06/2091 N/A 147,595 SdnBhd acres HS(D)50606PT142206, Mixdevelopment Leasehold HS(D)50607PT142205 ofresidential, HS(D)186777to186819 commercialand PT54005to54047 corporatepark HS(D)186820to186951 PT54099to54179 HS(D)186952to187029 PT54180to54257 HS(D)187030to187184 PT54258to54412 HS(D)243405to243477 PT78128to78200 HS(D)243364PT78087 HS(D)253546to253596 PT77271to77321 HS(D)253598to253749 PT77323to77474 HS(D)253597,253750 PT77322,77475 MukimPetaling DaerahPetaling 8 JilinProvince + 5,995 N/A No.19,XianRoad A4star24storey 24/12/1999 30years 29/12/2023 10 115,639 MaxcourtHotel sqm/ Changchun,JilinProvince hotelbuilding Leasehold Limited 41,584 People’sRepublic sqm 9 GalianJuta #&@ 200 99.62 PN1211Lot20407 SaujanaPutra 09/01/2001 99years 05/02/2094 N/A 70,459 SdnBhd acres MukimTanjung12 Developmentof Leasehold DaerahKualaLangat residentialand commercialbuildings

10 Abra + 0.96 N/A PM3861Lot261 MenaraMaxisegar 22/06/1995 99years 03/04/2094 14 56,406 Development acres/ BandarAmpang 24-storeycommercial Leasehold SdnBhd 3,901.4 DaerahHuluLangat complex sqm


1�0

ORDINARY SHARES(BasedonRegisterofDirectors’shareholdingsasat10June2009)

No. of Ordinary Shares of RM0.20 each Direct %*4 Deemed %*4

Interest InterestThe Company

1. TanSriDato’(Dr)IrChan 130,769,592 6.78 854,561,543 *1 44.32 AhChye@ChanChongYoon

2. Y.A.M.TengkuSulaiman 1,500 *2 – – ShahAl-HajIbniAl-Marhum SultanSalahuddinAbdul AzizShahAl-Haj

3. ChuaKimLan 222,039 0.011 28,125 *3 0.001

4. LoyBoonChen 462,900 0.03 – –

Notes:

*1 Deemed interested through his spouse, Puan Sri Datin Thong Nyok Choo, his daughter, Chan Siu Wei and by virtue of his interest in Pengurusan Projek Bersistem Sdn Bhd, Prosperous Inn Sdn Bhd, Sze Choon Holdings Sdn Bhd and Kumpulan Europlus Berhad pursuant to Section 6A of the Companies Act, 1965 (“Act”).

*2 Less than 0.005%.

*3 Deemed interested through her spouse, Chin Chee Meng pursuant to Section 6A of the Act.

*4 % shareholding based on voting share capital as at 10 June 2009 of 1,928,102,532.

TanSriDato’(Dr)IrChanAhChye@ChanChongYoon,byvirtueofhisinterestinthesharesoftheCompanyisalsodeemedinterestedinthesharesofalltheCompany’ssubsidiariestotheextenttheCompanyhasaninterest.

Saveasdisclosedabove,noneoftheotherDirectorsoftheCompanyhaveanyinterestsinthesharesoftheCompanyanditsrelatedcorporationsasat10June2009.

STATEMENT ON DIRECTORS’ INTERESTSIN THE COMPANY AND RELATED CORPORATIONSas at 10 June 2009

ANNUAL REPORT 2009

1�1

ANALYSIS OF SHAREHOLDINGSas at 10 June 2009

SHARE CAPITAL

Authorisedsharecapital : RM2,000,000,000.00 divided into 8,000,000,000 ordinary shares ofRM0.20each,1,500,000,000redeemableconvertiblepreferencesharesofRM0.20eachand1,000,000,000irredeemableconvertiblepreferencesharesofRM0.10each.

Issuedandpaid-upsharecapital : RM386,147,666.40 divided into 1,930,738,332 ordinary shares ofRM0.20each.

ClassofShares/VotingRights : Thereisonlyoneclassofordinaryshareswithvotingrightsinthepaid-upsharecapitaloftheCompany.Eachshareentitlestheholdertoonevote.

SharesBuyBack : TheCompanyhadpurchased2,635,800ordinarysharesofRM0.20eachandthesharespurchasedwereretainedastreasuryshares.

DISTRIBUTION OF ORDINARY SHAREHOLDINGS(BasedonRecordofDepositorsasat10June2009)

No. of % of No. of % of Ordinary Ordinary Ordinary OrdinarySize of Holdings Shareholders Shareholders*3 Shares Held Shares Held*3

1-99 946 5.39 38,711 0.00100-1,000 1,958 11.16 1,271,592 0.071,001-10,000 7,975 45.45 33,305,311 1.7310,001-100,000 5,211 29.70 203,144,542 10.54100,001-96,405,125(*1) 1,455 8.29 1,119,521,876 58.0696,405,126andabove(*2) 2 0.01 570,820.500 29.61

TOTAL 17,547 100.00 1,928,102,532 100.00

NOTES:

*1 Less than 5% of the voting share capital*2 5% and above of the voting share capital *3 Exclusive of Shares Buy Back

THIRTY LARGEST ORDINARY SHAREHOLDERS(BasedonRecordofDepositorsasat10June2009) No. of OrdinaryName Shares Held %

(1) EBNOMINEES(TEMPATAN)SENDIRIANBERHAD 328,800,000 17.05 PledgedSecuritiesAccountforKumpulanEuroplusBerhad(JTR)

(2) CIMSECNOMINEES(TEMPATAN)SDNBHD 242,020,500 12.55 CIMBBankforKumpulanEuroplusBerhad(Banking)

(3) TASECNOMINEES(TEMPATAN)SDNBHD 60,000,000 3.11 TAFirstCreditSdnBhdforKumpulanEuroplusBerhad

(4) CHANAHCHYE@CHANCHONGYOON 43,574,061 2.26

1�� (cont’d)


THIRTY LARGEST ORDINARY SHAREHOLDERS (CONT’D)(BasedonRecordofDepositorsasat10June2009)

No. of OrdinaryName Shares Held %

(5) PENGURUSANPROJEKBERSISTEMSDNBHD 26,707,404 1.39

(6) TANOMINEES(TEMPATAN)SDNBHD 25,965,831 1.35 PledgedSecuritiesAccountforChanAhChye@ChanChongYoon

(7) M&ANOMINEE(TEMPATAN)SDNBHD 22,094,463 1.15 InsasCredit&LeasingSdnBhdforChanAhChye@ChanChongYoon

(8) HSBCNOMINEES(ASING)SDNBHD 21,959,700 1.14 ExemptANforTheBankofNewYorkMellon(BNYMASE&A)

(9) PUBLICNOMINEES(TEMPATAN)SDNBHD 21,475,131 1.11 PledgedSecuritiesAccountforChanAhChye@ChanChongYoon(JHL)

(10) CARTABANNOMINEES(TEMPATAN)SDNBHD 21,030,000 1.09 DBSVickers(HongKong)LimitedforChaiYetLee

(11) KUMPULANEUROPLUSBERHAD 20,494,800 1.06

(12) TASECNOMINEES(TEMPATAN)SDNBHD 20,400,000 1.06 TAFirstCreditSdnBhdforPengurusanProjekBersistemSdnBhd

(13) CITIGROUPNOMINEES(ASING)SDNBHD 17,833,050 0.92 CBNYforDFAEmergingMarketsFund

(14) EBNOMINEES(TEMPATAN)SENDIRIANBERHAD 13,018,086 0.68 PledgedSecuritiesAccountforChanAhChye@ChanChongYoon(BB)

(15) MINISTEROFFINANCE 12,900,000 0.67 AkaunJaminanPinjamanKerajaanPersekutuan

(16) TASECNOMINEES(TEMPATAN)SDNBHD 12,874,167 0.67 TAFirstCreditSdnBhdforKumpulanEuroplusBhd(A/CNo.2)

(17) POSMALAYSIABERHAD 11,637,000 0.60

(18) CIMSECNOMINEES(TEMPATAN)SDNBHD 10,360,413 0.54 CIMBBankforIntelbestCorporationSdnBhd(Banking)

(19) HDMNOMINEES(TEMPATAN)SDNBHD 9,900,000 0.51 UOBKayHianPteLtdforTehKeeHong

(20) WARASARABINTIMOHDSAID 9,467,800 0.49

(21) TANSUANHUAT 9,078,300 0.47

(22) LEEKIMPOH 9,000,000 0.47

(23) LIEWKHANG@LIEWWANKHANG 8,200,000 0.43

(24) OLIVELIMSWEELIAN 7,898,190 0.41

ANNUAL REPORT 2009

(cont’d) 1��


THIRTY LARGEST ORDINARY SHAREHOLDERS (CONT’D)(BasedonRecordofDepositorsasat10June2009)

No. of OrdinaryName Shares Held %

(25) WARASARABINTIMOHDSAID 7,630,000 0.40

(26) THONGNYOKCHOO 7,250,195 0.38

(27) GENERALTECHNOLOGYSDNBHD 7,183,431 0.37

(28) KUMPULANEUROPLUSBERHAD 6,796,800 0.35

(29) OSKNOMINEES(ASING)SDNBERHAD 6,669,000 0.35 DBSVickersSecs(S)PteLtdforTanSweeTin

(30) NGSIEWLUAN 6,655,000 0.35

1,028,873,322 53.36

SUBSTANTIAL SHAREHOLDERS(BasedonRegisterofSubstantialShareholdersasat10June2009)

No. of Ordinary Shares of RM0.20 each Direct Deemed Name of substantial shareholders Interest %*4 Interest %*4

1. TanSriDato’(Dr)IrChanAhChye 130,769,592 6.78 854,561,543 *1 44.32 @ChanChongYoon(“TSDCAC”)

2. PuanSriDatinThongNyokChoo 7,493,945 0.39 977,837,190 *2 50.71 (“PSDTNC”)

3. KumpulanEuroplusBerhad 791,465,067 41.05 – – (“KEURO”)

4. IJMCorporationBerhad(“IJM”) – – 791,465,067 *3 41.05

NOTES:

*1 Deemed interested through his spouse, PSDTNC, his daughter, Chan Siu Wei and by virtue of his interest in Pengurusan Projek Bersistem Sdn Bhd, Prosperous Inn Sdn Bhd, Sze Choon Holdings Sdn Bhd and KEURO pursuant to Section 6A of the Companies Act, 1965 (“Act”).

*2 Deemed interest through her spouse, TSDCAC, her daughter, Chan Siu Wei and by virtue of her interest in Pengurusan Projek Bersistem Sdn Bhd, Prosperous Inn Sdn Bhd, Sze Choon Holdings Sdn Bhd and KEURO pursuant to Section 6A of the Act.

*3 Deemed interested by virtue of IJM holding 25% in KEURO.

*4 % shareholding based on voting share capital as at 10 June 2009 of 1,928,102,532.

1��

NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIvEN THATthe84thAnnualGeneralMeetingofTALAM CORPORATION BERHADwillbeheldatPerdanaBallroom,PandanLakeClub,Lot28,JalanPerdana3/8,PandanPerdana,55300KualaLumpuronThursday,23July2009at11.30a.m.forthefollowingpurposes:-

AGENDA

1. ToreceiveandadopttheAuditedFinancialStatementsoftheCompanyfortheyearended31January2009andtheReportsoftheDirectorsandAuditorsthereon.

2. ToapprovethepaymentofDirectors’feesofRM25,000foreachDirectorfortheyearended31January2009.

3. To re-elect the Director, Y.A.M. Tengku Sulaiman Shah Al-Haj Ibni Al-Marhum SultanSalahuddinAbdulAzizShahAl-Haj,whoisretiringinaccordancewithArticle97oftheArticlesofAssociationoftheCompany.

4. Tore-electtheDirector,TsenKengYam,whoisretiringinaccordancewithArticle97oftheArticlesofAssociationoftheCompany.

5. Tore-electtheDirector,WinstonMahYatKong,whoisretiringinaccordancewithArticle81oftheArticlesofAssociationoftheCompany.

6. Tore-appointMessrsBakerTillyMonteiroHengasAuditorsoftheCompanyandtoauthorisetheDirectorstofixtheirremuneration.

AS SPECIAL BUSINESSES

7. ToconsiderandifthoughtfittopassthefollowingOrdinaryResolutions:-

7.1 Authority to allot and issue shares pursuant to Section 132D of the Companies Act, 1965

“THATpursuanttoSection132DoftheCompaniesAct,1965,theDirectorsbeandareherebyauthorisedtoissuesharesintheCompanyatanytimeuntiltheconclusionofthenextAnnualGeneralMeetinganduponsuchtermsandconditionsandforsuchpurposesastheDirectorsmayintheirabsolutediscretiondeemfit,providedthattheaggregatenumberofsharestobeissueddoesnotexceed10percentoftheissuedsharecapitaloftheCompanyforthetimebeing,subjectalwaystotheapprovalofalltherelevantregulatorybodiesbeingobtainedforsuchallotmentsandissues.”

7.2 Authority pursuant to Section 132E of the Companies Act, 1965

“THATpursuanttoSection132EoftheCompaniesAct,1965,authoritybeandisherebygiven for theCompanyandeachof itssubsidiaries toenter intoanyarrangement or transaction with any Director of the Company or any personconnectedwithsuchDirectortoacquirefromordisposetosuchDirectororpersonconnectedwithsuchDirectoranynon-cashassetsofrequisitevaluethatislessthan5%ofthetotalnetassetsoftheGroupatthetimeofsuchacquisitionordisposal.

(Resolution 1)

(Resolution 2)

(Resolution 3)

(Resolution 4)

(Resolution 5)

(Resolution 6)

(Resolution 7)

(Resolution 8)

ANNUAL REPORT 2009

(cont’d) 1��


AND THATsuchauthorityshallcontinuetobeinforceuntil:-

(i) theconclusionofthenextAnnualGeneralMeetingoftheCompany;or

(ii) theexpirationoftheperiodwithinwhichthenextAnnualGeneralMeetingoftheCompanyisrequiredtobetabledpursuanttoSection143(1)oftheCompaniesAct,1965(butshallnotextendtosuchextensionasmaybeallowedpursuanttoSection143(2)oftheCompaniesAct,1965);or

(iii) revoked or varied by resolution passed by the shareholders in a general

meeting;

whicheverisearlier.”

7.3 Proposed renewal of shareholders’ mandate for existing recurrent related party transactions and new shareholders’ mandate for additional recurrent related party transactions of a revenue or trading nature (“Proposed Shareholders’ Mandate I”)

“THAT,subjectalwaystotheListingRequirementsofBursaMalaysiaSecuritiesBerhad,theCompanyanditssubsidiarycompaniesshallbemandatedtoenterintosuchrecurrenttransactionsofarevenueortradingnaturewhicharenecessaryfortheirday-to-dayoperationsandwiththoserelatedpartiesasspecifiedinSection2.2(1)and(2)oftheCirculartoShareholdersdated1July2009subjectfurthertothefollowing:-

(i) thetransactionsareintheordinarycourseofbusinessoftheCompanyanditssubsidiarycompaniesontermsnotmorefavourabletotherelatedpartiesthanthosegenerallyavailabletothepublicandarenotdetrimentaltotheminorityshareholdersoftheCompany;and

(ii) disclosure will be made in the Annual Report of the aggregate value oftransactionsoftheProposedShareholders’MandateIconductedduringthefinancialyear,includingamongstothers,thefollowinginformation:-

(a) thetypeoftherecurrenttransactionsmade;and

(b) thenamesoftherelatedpartiesinvolvedineachtypeoftherecurrenttransactionsmadeandtheirrelationshipwiththeCompanyand/oritssubsidiaries.

AND THATsuchmandateshallcommenceuponpassingofthisresolutionandshallcontinuetobeinforceuntil:-

(i) theconclusionofthenextAnnualGeneralMeeting(“AGM”)oftheCompanyatwhichtimeitwilllapse,unlesstheauthorityisrenewedbyaresolutionpassedatthemeeting;or

(ii) theexpirationoftheperiodwithinwhichthenextAGMoftheCompanyisrequiredtobeheldpursuanttoSection143(1)oftheCompaniesAct,1965(“Act”)(butshallnotextendtosuchextensionasmaybeallowedpursuanttoSection143(2)oftheAct);or

(iii) revokedorvariedbyaresolutionpassedbytheshareholdersatageneral

meetingbeforethenextAGM;

whicheverisearlier;

(Resolution 9)

1�� (cont’d)

AND FURTHER THATtheDirectorsoftheCompanybeauthorisedtocompleteanddoallsuchactsandthings(includingexecutingallsuchdocumentsasmayberequired)astheymayconsiderexpedientornecessarytogiveeffecttotheProposedShareholders’MandateI.”

7.4 Proposed renewal of shareholders’ mandate for existing recurrent related party transactions and new shareholders’ mandate for additional recurrent related party transactions of a revenue or trading nature (“Proposed Shareholders’ Mandate II”)

“THAT,subjectalwaystotheListingRequirementsofBursaMalaysiaSecuritiesBerhad,theCompanyanditssubsidiarycompaniesshallbemandatedtoenterintosuchrecurrenttransactionsofarevenueortradingnaturewhicharenecessaryfortheirday-to-dayoperationsandwiththoserelatedpartiesasspecifiedinSection2.2(3)to(16)oftheCirculartoShareholdersdated1July2009subjectfurthertothefollowing:-

(i) thetransactionsareintheordinarycourseofbusinessoftheCompanyanditssubsidiarycompaniesontermsnotmorefavourabletotherelatedpartiesthanthosegenerallyavailabletothepublicandarenotdetrimentaltotheminorityshareholdersoftheCompany;and

(ii) disclosure will be made in the Annual Report of the aggregate value oftransactionsoftheProposedShareholders’MandateIIconductedduringthefinancialyear,includingamongstothers,thefollowinginformation:-

(a) thetypeoftherecurrenttransactionsmade;and

(b) thenamesoftherelatedpartiesinvolvedineachtypeoftherecurrenttransactionsmadeandtheirrelationshipwiththeCompanyand/oritssubsidiaries.

AND THATsuchmandateshallcommenceuponpassingofthisresolutionandshallcontinuetobeinforceuntil:-

(i) theconclusionofthenextAnnualGeneralMeeting(“AGM”)oftheCompanyatwhichtimeitwilllapse,unlesstheauthorityisrenewedbyaresolutionpassedatthemeeting;or

(ii) theexpirationoftheperiodwithinwhichthenextAGMoftheCompanyisrequiredtobeheldpursuanttoSection143(1)oftheCompaniesAct,1965(“Act”)(butshallnotextendtosuchextensionasmaybeallowedpursuanttoSection143(2)oftheAct);or

(iii) revokedorvariedbyaresolutionpassedbytheshareholdersatageneral

meetingbeforethenextAGM;

whicheverisearlier;

AND FURTHER THATtheDirectorsoftheCompanybeauthorisedtocompleteanddoallsuchactsandthings(includingexecutingallsuchdocumentsasmayberequired)astheymayconsiderexpedientornecessarytogiveeffecttotheProposedShareholders’MandateII.”

8. Totransactanyordinarybusinesswhichduenoticeshallhavebeengiven.


(Resolution 10)

ANNUAL REPORT 2009

(cont’d) 1��

BY ORDER OF THE BOARD

TING KOK KEONGSecretary

KualaLumpur1July2009

NOTES:

(A) APPOINTMENT OF PROXY

1. A member of the Company entitled to attend and vote at the meeting may appoint one (1) proxy only to attend and vote in his stead. A proxy need not be a member of the Company and the provision of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company.

2. The instrument appointing a proxy shall be in writing under the hand of the appointor or his attorney duly authorised in writing, or if the appointor is a corporation, under its common seal or the hand of its attorney duly authorised.

3. All forms of proxy must be deposited at the Registered Office of the Company situated at Suite 2.05, Level 2 Menara Maxisegar, Jalan Pandan Indah 4/2, Pandan Indah, 55100 Kuala Lumpur not less than 48 hours before the time appointed for holding the meeting or any adjournment thereof.

(B) EXPLANATORY NOTES TO THE SPECIAL BUSINESSES

1. The Ordinary Resolution no. 7 if passed, will give the Directors of the Company the authority to issue shares in the Company up to an amount not exceeding in total 10% of the issued share capital of the Company for such purposes as the Directors consider would be in the interest of the Company. This would avoid any delay and costs involved in convening general meeting to specifically approve such an issue of shares. This authority, unless revoked or varied at a general meeting, will expire at the next Annual General Meeting of the Company.

2. Resolution pursuant to Section 132E of the Companies Act, 1965

Section 132E of the Companies Act, 1965 prohibits a company or its subsidiaries from entering into any arrangement or transaction with its Directors or persons connected with such Directors in respect of the acquisition from or disposal to such Directors or connected persons of any non-cash assets of the requisite value without prior approval of the Company in general meeting. According to the Companies Act, 1965, a non-cash asset is considered to be of the requisite value, if at the time of arrangement or transaction, its value is greater than RM250,000.00 or 10% of the Company’s net assets, whichever is the lesser, subject to a minimum of RM10,000.00.

The proposed Ordinary Resolution no. 8, if passed, will authorise the Company and each of its subsidiaries to enter into any arrangement or transaction with a Director of the Company or with a person connected with such a Director to acquire from or dispose to such a Director or person connected with such a Director any non-cash assets of the requisite value that is less than 5% of the total net assets of the Group at the time of such acquisition or disposal.

3. The detailed information on the Ordinary Resolution nos. 9 and 10 pertaining to the proposed renewal of shareholders’ mandate for existing recurrent related party transactions and new shareholders’ mandate for additional recurrent related party transactions of a revenue or trading nature, is set out in the Circular to Shareholders dated 1 July 2009 which is enclosed together with the Company’s 2009 Annual Report.


1��

STATEMENT ACCOMPANYINGNOTICE OF ANNUAL GENERAL MEETING

DIRECTORS STANDING FOR RE-ELECTION AT THE 84TH ANNUAL GENERAL MEETING OF THE COMPANY

TheDirectorsretiringbyrotationandstandingforre-electionpursuanttoArticle97oftheArticlesofAssociationoftheCompanyareasfollows:-

1. Y.A.M.TengkuSulaimanShahAl-HajIbniAl-MarhumSultanSalahuddinAbdulAzizShahAl-Haj

2. TsenKengYam

TheDirectorretiringbyrotationandstandingforre-electionpursuanttoArticle81oftheArticlesofAssociationoftheCompanyisasfollows:-

1. WinstonMahYatKongTheprofileofeachoftheaboveDirectorsissetoutinthesectionentitled“ProfileofBoardofDirectors”onpages5to8ofthisAnnualReport.

TheinformationrelatingtotheDirectors’shareholdingsintheCompanyanditsrelatedcorporationsaresetoutinthesectionentitled“StatementonDirectors’Interests”onpage140ofthisAnnualReport.

✄

FORM OF PROXY NO.OFSHARESHELD

I/We__________________________________________________________ (CompanyNo./NRICNo.__________________________) (Nameinfullandinblockletters)

of______________________________________________________________________________________________________________ (Fulladdress)

beingamember/membersofTALAM CORPORATION BERHAD (1120-H)herebyappoint__________________________________

____________________________________________________________________________ (NRICNo.___________________________) (Nameinfullandinblockletters)

of______________________________________________________________________________________________________________ (Fulladdress)

orfailinghim/her,theChairmanoftheMeetingasmy/ourproxytovoteonmy/ourbehalfatthe84thAnnualGeneralMeetingoftheCompanytobeheldatthePerdanaBallroom,PandanLakeClub,Lot28,JalanPerdana3/8,PandanPerdana,55300KualaLumpuronThursday,23July2009at11.30a.m.andatanyadjournmentthereof,ontheresolutionsreferredtointheNoticeoftheAnnualGeneralMeeting.

My/ourproxyistovoteasindicatedbelow:

NO. RESOLUTIONS FOR AGAINST

As Ordinary Businesses

1 ToreceiveandadopttheAuditedFinancialStatementsoftheCompanyfortheyearended31January2009andtheReportsoftheDirectorsandAuditorsthereon.

2 ToapprovethepaymentofDirectors’feeofRM25,000foreachDirectorfortheyearended31January2009.

3 Tore-electtheDirector,Y.A.M.TengkuSulaimanShahAl-HajIbniAl-MarhumSultanSalahuddinAbdulAzizShahAl-Haj,whoisretiringinaccordancewithArticle97oftheArticlesofAssociationoftheCompany.

4 Tore-electtheDirector,TsenKengYam,whoisretiringinaccordancewithArticle97oftheArticlesofAssociationoftheCompany.

5 Tore-electtheDirector,WinstonMahYatKong,whoisretiringinaccordancewithArticle81oftheArticlesofAssociationoftheCompany.

6 Tore-appointMessrsBakerTillyMonteiroHengasAuditorsoftheCompanyandtoauthorisetheDirectorstofixtheirremuneration.

As Special Businesses

7 OrdinaryResolution AuthoritytoallotandissuesharespursuanttoSection132DoftheCompaniesAct,1965.

8 OrdinaryResolution AuthoritypursuanttoSection132EoftheCompaniesAct,1965.

9 OrdinaryResolution Proposedrenewalofshareholders’mandateforexistingrecurrentrelatedpartytransactions

andnewshareholders’mandateforadditionalrecurrentrelatedpartytransactionsofarevenueortradingnature(“ProposedShareholders’MandateI”).

10 OrdinaryResolution Proposedrenewalofshareholders’mandateforexistingrecurrentrelatedpartytransactions

andnewshareholdersmandateforadditionalrecurrentrelatedpartytransactionsofarevenueortradingnature(“ProposedShareholders’MandateII”).

(Pleaseindicatewithan“X”intheappropriatespaceshowyouwishyourvotetobecasted.Ifyoudonotindicatehowyouwishyourproxytovoteonanyresolution,theproxyshallvoteashe/shethinksfit,orathis/herdiscretion,abstainsfromvoting).

Signedthis________________ dayof__________________________ 2009.

Signature/CommonSealofMember

NOTES:

1. A member of the Company entitled to attend and vote at the meeting may appoint one (1) proxy only to attend and vote in his stead. A proxy need not be a member of the Company and the provision of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company.

2. The instrument appointing a proxy shall be in writing under the hand of the appointor or his attorney duly authorised in writing, or if the appointor is a corporation, under its common seal or the hand of its attorney duly authorised.

3. All forms of proxy must be deposited at the Registered Office of the Company situated at Suite 2.05, Level 2 Menara Maxisegar, Jalan Pandan Indah 4/2, Pandan Indah, 55100 Kuala Lumpur not less than 48 hours before the time appointed for holding the meeting or any adjournment thereof.

TheCompanySecretaryTALAM CORPORATION BERHAD

Suite2.05,Level2,MenaraMaxisegarJalanPandanIndah4/2

PandahIndah55100KualaLumpur

(1120-H)

Stamp

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